Staying in the Philippines, Banique

Staying in the Philippines, Baniqued describes how the apparent distortion of prices by traders and market intermediaries provided the motivation to develop an alternative route to market. In order to fulfil the growing demand for fresh produce from the fast food industry, growers were encouraged to enter into long-term contracts with a food processor at predetermined prices. However, when prices in the wholesale market exceeded the contract prices, growers reneged on the contract, thereby disrupting the capacity of the processor to meet its supply commitments. Forced to import in order to retain the contract, the processor embarked upon an ambitious plan to train the farmers and to build capacity through: (1) improving the efficiency of their farming practice; (2) developing a sense of business so that farmers could appreciate risk, opportunities and threats; (3) ensuring that the growers’ income reflected all the costs of production, social costs and environmental costs; and (4) nurturing social values. Where all parties share similar values, conflict is more easily resolved and individuals learn to value their work and their contribution more highly, thereby improving their capacity to learn.