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Building Digital Farm to Market Road

Reflections and Insights

on ICT and Rural Development

PhilDHRRA-MindanaoTriPARRD Experience

BY:ROLANDO ABANDO

MINDANAO REGIONAL COORDINATOR

MAJOR PARTS OF THE PRESENTATION

PART 1: THE

CONTEXT

PART 1: THE

CONTEXT

PART 2: THE

INITIATIVES

PART 2: THE

INITIATIVES

PART 3: POSSIBILITIES


PART 1: THE CONTEXT

PART 1: THE CONTEXT

The PhilHRRA-Mindanao ExperienceTriPARRD (1996-1999)

LTI PSD SIBS

+ a little of ICT…

9 ARCs in 5 Municipalities in ComVal Province

The Evolution of Our ICT Awareness

• PCs, Cell Phones, Emails: Just a work-enabler for Triparrd Staff

• Then a “weak signal” of the future was noticed.

• There were group discussions on Alvin Toffler’s theories: Third Wave, Power Shift

• Understanding on the relevance of ICT to Rural Development and productivity was vague and characterized by scattered unsystematic ideas….

• Retrospectively, Steven Covey’s 5 Ages of Civilization’s Voice captures the synthesis of those ideas.

The PhilHRRA- Mindanao ExperienceTriPARRD (1996-1999)

LTI PSD SIBS


7 ARCs in 5 Municipalities in ComVal Province

Our Situation: Five Ages of Civilization’s Voice

• Hunter/Gatherer Age

Source: Stephen R. Covey, “The 8th Habit”

• Hunter/Gatherer Age

• Agricultural Age



Factors for Economic Growth/Development

Ages/Stages• Agricultural

Key Factors• Land• Labor• Weather

• Hunter/Gatherer Age• Agricultural Age

• Industrial Age





• Industrial

Key Factors• Land• Labor• Weather

• Capital• Transport• Innovation

• Hunter/Gatherer Age• Agricultural Age• Industrial Age

• Information/Knowledge Age





• Industrial

• Information/

Knowledge

Key Factors• Land• Labor• Weather• Capital• Transport• Innovation

• ICT Infrastructure• Workforce Development• IP Creation and Protection

• Hunter/Gatherer Age• Agricultural Age• Industrial Age• Information/Knowledge Age

• Age of Wisdom


Age of Networks

Signals of the Unfolding Future:

1. Social Networking

2. Web 2.0

3. Crowd sourcing

4. Tools: wiki, blog,

The Rise of Myspace, Facebook, You Tube, Wikipedia, etc.

FORECAST: The value of network will be greater than the value of IP/technology.

Why did Google bought You Tube for $1.2 B

e-Philippines Strategic Roadmap

Creation of High Value JOBS

Provision of GOVERNMENT SERVICES TO

CITIZENS Directly

Provision of a Healthy &

Competitive BUSINESS

ENVIRONMENT

Building of ICT AWARENESS &

CAPABILITYin Society

Provision of Affordable INTERNET ACCESS to Communities

ee--enabled enabled societysociety

• Provide affordable Internet access to all Filipino communities

• Build ICT awareness and capability in Philippine society

• Generate high value jobs in Filipino communities through world-class ICT services

• Provide a healthy and competitive business environment

• Provide government services directly to all Filipino citizens worldwide

e-Philippines Strategic Roadmap

Creation of High Value JOBS

Provision of GOVERNMENT SERVICES TO

CITIZENS Directly

Provision of a Healthy &

Competitive BUSINESS

ENVIRONMENT

Building of ICT AWARENESS &

CAPABILITYin Society

Provision of Affordable INTERNET ACCESS to Communities

ee--enabled enabled societysociety

Whats in it with me?

The Challenge of Bridging the Digital Divide!

Is… The Challenge of Raising Productivity thru

ICT!


Low KSALack if ICT

Infrastructure

Lack of Relevant Software

Applications

SCIENCE CITY OF MUÑOZ -- Confronted with a pest attack on his rice field, Marcelino Dizon, a 60-year-old farmer from Barangay Rang-ayan here, went straight to the barangay hall to search for answers.With the flick of a callused finger, Dizon turned on a computer and started surfing the Net. In no time at all, he had the information he needed.

In Magsaysay, Davao del Sur, Bienvenido Mariano, 62, faced a similar problem. He got the answer from the Internet—stem borers were attacking his plants—and learned what he should do to solve the problem.Dizon and Mariano are among the hundreds of farmers in 12 cyber communities around the country who have become adept at using the Internet as a tool for improving rice-farming techniques.

Dizon’s village, which is 9 kilometers from the city proper, has no landline telephone connection. But through the wonders of information and communications technology (ICT), Barangay Rang-ayan is now connected to the Internet and its residents are able to make phone calls using Voice Over Internet Protocol (VoIP) technology.

Mariano’s village is 21 km from the provincial capital of Digos where the Internet backbone has been installed and beamed to their cyber community by wireless technology.

QUESTION:

• CAN A NO READ NO WRITE FILL UP A BALLOT?

President

Next

De Castro, Noli

Elective Position: 1

Commission On ElectionPhilippines May 11, 2010

President

Vice President

National Election

Senators

Party List Representative

Congressman

Governor

Vice Governor

Board Member

Mayor

Vice Mayor

Councilors

Legarda, Loren

Lacson, Ping

Roxas, Mar

Villar, Manny

Lakas

UNO

Independent

NP

PDP Laban

De Castro, NoliSelected Candidate(s): 01

Submit

Vice President

Next

Gordon, Richard



President

Vice President

National Election

Senators


Congressman

Governor

Vice Governor

Board Member

Mayor

Vice Mayor

Councilors

Escudero, Chiz

Duque, Francisco

Binay, Jejomar

Marcos, Imelda

Lakas

UNO

Independent

NP

PDP Laban

Escudero, ChizSelected Candidate(s): 0

De Castro, Noli1

Submit

Senator

Next



President

Vice President

National Election

Senators


Congressman

Governor

Vice Governor

Board Member

Mayor

Vice Mayor

Councilors

Mike Defensor LP

UNO

Lakas

NP

PDP Laban

Back

Lakas

UNO

Uno

NP

Uno

LP

NP

Lakas

UNO

Independent

NP

PDP Laban

Lakas

UNO

Independent

NP

PDP Laban

PDP

NP

Koko Pimentel

Nani Braganza

Juan Flavier

Sonia Roco

Migs Zubiri

JV Ejercito

Jingoy Estrada

Candidate 14

Candidate 15

Candidate 16

Candidate 17

Candidate 18

Candidate 19

Candidate 20

Candidate 21Niki Coseteng

Gringo Honasan

Rudy Duterte

Sonny Belmonte

Candidate 22

Candidate 23

Candidate 24

Candidate 13 Lakas De Castro, Noli

Gordon, Richard

1. Mike Defensor2. Nani Braganza3.Koko Pimentel4. JV Ejercito5. Rudy Duterte6. Migs Zubiri

Selected Candidate(s):

0 1 2 3 456

7. Candidate 20

7

8. Candidate 13

8

PART 2: EARLY INITIATIVES

PART 2: EARLY INITIATIVES

The PhilHRRA-Mindanao Experience

TriPARRD (1996-1999)

LTI PSD SIBS


5 Municipalities in Com Val Province

Problems Encountered With Attempted IT Solution

Low Farm Investments

Low Credit Worthiness

Lack of Business Plan (Farm and

Budget)

Lack of Technical know how

Low Yield

Lack of crop suitability study

Absence of proper land evaluation

Lack of DA personnel

Low Selling Price of produce

Lack of competition

among traders

Limited Access to Supply information

Reliance on Word of Mouth

Low Income of Farmers

Poor Business Performance

Lack of timely and correct decision

making

Slow processing of business data and information

Chronic delay of Financial

statements generation

Low Income of people’s

Enterprises

Inadequate of Communiy Capital

Resources

Lack of Savings in the Community

Lack of opportunity for borrowing from

lending instituions

Distance of Formal Banking

Institution

Lack of adequate policy support

Lack of production support services

Slow processing of prodcution data

and information

Less favorable policy environment

Lack of Monitoring of production Performance

Slow Rural Economic Growth

Attempts for IT Solution: Farmer Friendly Accounting Software

Poor Business Performance

Lack of timely and correct decision

making

Slow processing of business data and information

Chronic delay of Financial

statements generation

Low Income of people’s

Enterprises

Phildhrra tapped a software developer to provide a customized “farmer friendly” accounting software.

This was introduced and adopted by Dizon Farm Workers Cooperative This has been used by their consumer store and canteen processing around 300 transactions daily.

Until now the software, is being used by the Coop

Another license (micro-finance version) was purchased by TriFED, a Federation of ARB cooperative that spinned off from TriPARRD

Problems encountered:

The developer refused to cater further to other coops except those with internet connectivity due to the cost of maintenance and support

Aspiration:

With wireless internet penetrating rural areas, a similar application sitting on the Software as a Service Platform is considered before by PhilDHRRA to be developed in partnership with a solution provider.

Low Farm Investments

Low Credit Worthiness

Lack of Business Plan (Farm and

Budget)

Lack of Technical know how

Low Yield

Lack of crop suitability study

Absence of proper land evaluation

Lack of DA personnel

Low Selling Price of produce

Lack of competition

among traders

Limited Access to Supply information

Reliance on Word of Mouth

Low Income of Farmers

Attempts for IT Solution: Farm Planning and Budgeting

Assisting farmers to carry out Farm Planning and Budgeting is a routine of the field personnel of the project and is done on a manually.

Attempts to automate the this tedious process were done only thru the excell spread sheet – only the budgeting side.

Farm plans and budget is important not only in identifying the resources needed to develop the farm, but also increasing the confidence of the farmers that the farm can be transformed towards greater productivity.

Cost-benefit simulation via Excel is very effective for the farmer to arrive at a realistic plan based on the given resources.

Aspiration:

A a multi-tier (social networking enabled) Farm Planning Software using powerful database management and object oriented programming language with an SaaS platform will be available to communities.

Except for few cases the burden of assisting the farmers to come up a farm plan and budget is done by NGOs.

But we realize farm plans are not only about numbers.

It is also about understanding the geo-physical conditions of the farm (soil type, ph, climate, terrain) that requires expert evaluation


Low KSALack of ICT

Infrastructure


Applications



Signals of the Future

Municipal Wimax Area Broadband Network

Lack of ICT InfrastructureLack of ICT

Infrastructure

We need to build the highway straight to the hinterlands…..

LAST MILE BANKING


Applications


Applications

Production Support thru Micro-finance was inadequate to finance the production potential of the areas.

Bigger scale formal lending institution is inaccessible and setting up a branch in the communities is uneconomical.

The challenge then, is can an ICT enabled mechanism expedite for formal lending institutions to reach out to rural communities despite the distance?

Aspiration:

Study and when feasible implement the Brazil’s Banking Correspondence System.

A banking correspondent is a retail institution authorized and enabled by an IT solution to accept savings deposits within a community and dispense withdrawals in behalf of a financial institution.

The portfolio size of Micro finance project have not reach a scale for it to operate viably. E.g. High personnel turn over due to low salary scale of skilled personnel. .

Inadequate of Communiy Capital

Resources

Lack of Savings in the Community

Lack of opportunity for borrowing from

lending instituions

Distance of Formal Banking

Institution

ICT CAPACITY BUILDING

• ICT Capability Building for NGOs• ICT Capability Building for LGU• Awareness Building of the Role of Youth and Students in

Development ICT– Akin to technology– Pulsating Sector– A Potent Agent for Technology Diffusion

Building Digital Farm to Market Road

On-line Social Networking Approach to Linking Production to

Market

By: Alexander Casiple, SUCCEED, INC

The Social Network Stakeholders

• The Farmers in the Community• Students in the Community• The Local Government Units (MAO,PAO)

– Agri-Technicians• NGO • Production Financiers• The Municipal Production Assemblers: Supply

Routers• The City Consolidators: Demand Routers• The City End-Consumers

FARMERS

STUDENTS

LENDERS

CONSU MERS

SUPPLY ROUTERS DEMAND

ROUTERS

AGRI TECH-NICIANS

DECS

LGUNGO

The Synergy of the Social Networking

• Farmers have a profound link to the end-consumer market.• Rural students have concrete contribution to the agricultural

development in the farming household and community level.• NGO perform functions in bridging the Digital Divide and “On-line

Siadization”• Agri-technicians (MAO) has an IT platform to perform its agricultural

support services.• LGU has a platform for production information system/ database

management as a tool for planning and policy development.• Consumers have profound link to producers and are empowered to

“co-produce” their consumption needs.

Road Map

Farmer Consumer

Generate Farm Plans and Budget

Generate Menu Plans and Budget

Supply is ascertained

Demand is ascertained

Supply and Demand is Market

Matched

Farm to Market Digital Link is

Created

Web-based Farm Planning and

Budgeting Software

Web-based Menu Planning and

Budgeting Software

Web-based Farm Planning and

Budgeting Software

Web-based Menu Planning and

Budgeting Software

Student assists in encoding production

information in the software

LGU/MAO Agri-Tech input farm technical information

into the software

DECS Integrates to the curriculum encoding skills development for Farm Planning Software

NGO forge partnership

Software generates Production Bgy, Municipal, Provincial Production Status Consolidated Report as an input to Policy Development and Decision-Making

Software generates Production Financing Requirement Report where Credit Providers can view and evaluate and decide to provide credit financing.

•Consumer input weekly budget

•Profile of persons in the households

•Sets of Weekly Menu Plan suited to the profile and budget

•Selects a set of menu plan

•Ingredients requirement checklist is generated

•Deselect ingredients still available in the Kitchen

•Click to Submit in the Shopping Cart

Agri-Ingredients is inputted to the Demand Monitoring Chart

How will the Farm To Market Digital Linking work?

PROFILING STAGE

1. Farmer register a Farm Planning Account

2. Student input general farm information

3. Technician input technical

information about

4. Farm Profile is Generated

Register name, farm location, resource inventory, etc

Farm location, resource inventory, present land use, etc

slopes, soil types, climate, technical description

System identifies crops suitable to the geo-physical conditions of the farming land scape. Generates 3D representation of the Farm

FARM PLANNING STAGE

5.Farmer/student divide vacant landscape into land units

6. Farmer/student select crops for a certain land unit

7. System calculates production potential.

8. Farm Plan and Budget is automatically generated in word or excell format

Farmer/student input size of a land unit (e.g. plot) then system automatically determine how many land units can be made in the vacant landscape

Farmer then select a crop from the list earlier generated by the technicial inputs of the agri-technician

When farmers select a crop, a decision support info ( instant cost-benefit calculation) is generated. Farmer then decides the scale of his production target.

A farm plan (no of hills, workbreakdown structure, timeline of activities, manning requirement, cost and income projection is generated.

CONSOLIDATION STAGE

Farm plans details serve as input to consolidation module

System provides window to interested credit providers

System provides interface for implementation tracking.

System provides reporting window to LGUs and other instituional stakeholders

System generates list of projects with farm plans and budget.

System generates list of projects that requires credit assistance where credit providers can view and evalauate the credit worthiness of the project.

Agri-technicians monitors implemenatation: Plan vs. Actual

System consolidates data from the various farm plans according geographic seggregation, crop selection or period of planting and harvest

INTEGRATION STAGE

Production supply detrmined by Farm Planning Software is matched with consumer demand determined by Menu Planning Software

System Identifies shortest route of production location to consumption location

Supply router pick up online routing advise for picking up commodities.

Demand router pick up routing advise for the delivery of commodities.

PROCESS FLOW FOR THE FARM TO MARKET DIGITAL LINK

Thank You


• Central Strategy:Sustainable Integrated Area Development

GROWTH TAKES PLACE WHEN THERE IS ACCUMULATION OF CAPITAL RESOURCES CAPITAL ACCUMULATION TAKES PLACE WHEN COMMUNITY CASH INFLOW EXCEEDS

CASH OUTFLOW EQUITABILITY TAKES PLACE WHEN THESE CAPITAL RESOURCES ARE PROPERLY

MANAGED BY THE ARB THEMSELVES EITHER INDIVIDUALLY OR THROUGH THE COOPERATIVE

TRIPLE TREAT: TREAT THE AREA AS AN ENTERPRISE TREAT THE COOPERATIVE AS AN ENTERPRISE TREAT THE FARM AS AN ENTERPRISE


PLUGGING THE FINANCIAL LEAKS

FOOD SECURITY AND LOCAL

SELF RELIANCE

GENERATION OF COOP ENTERPRISE

SERVICES

MORE SOCIAL SERVICES

ENHANCING CASH INFLOW

FARM PRODUCTIVITY IMPROVEMENT

MARKETING AND ENTERPRISE

DEVELOPMENT

ENTICEMENT OF EXTERNAL

INVESTMENT INTO THE AREA

OFF-SITE INVESTMENTS

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