Professional Documents
Culture Documents
VEGETABLE
INDUSTRY
PROFILE
MUNICIPALITY OF LANTAPAN
Province of Bukidnon
Prepared by:
TABLE OF CONTENTS
Part I. Introduction 3
A. Overview
B. Current Status of the Industry
A. Barangays covered
B. Firms/enterprises involved
C. Current employment capacity of the industry
D. Level of income of production
E. Value and volume of production
A. Product coverage
B. Geographical dispersion
C. Market performance
D. Production volume
E. Resource assessment
F. Support structure
G. Supply-demand situation
H. Major issues confronting sector
I. Opportunities
References 24
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Vegetable Industry Profile-Municipality of Lantapan 2
INTRODUCTION
A. Overview
In this paper the core industry that will be looked into is that of fresh vegetables in
the Municipality of Lantapan, Bukidnon. According to the Municipal Agriculture Office
(MAO) of Lantapan, Bukidnon there are 18 major kinds of vegetables grown in the
municipality. They are classified into leafy, fruit-like and root vegetables. Aside from these,
there are 250 lesser-known species utilized as vegetables concentrated in the rural areas.
These are generally grown during the dry season. Among the major vegetables, the
institutional markets have identified tomato, sweet pepper, broccoli, celery, carrots and
white potato.
Under the Philippine Standard Industrial Classification (PSIC), vegetable industry falls
under Major Division A that is Agriculture, Hunting and Forestry. It is under Division 01,
Growing of Crops and under Group 017, growing of vegetables, roots and tuber crops,
horticulture specialties & nursery products. The specific classes range from 0171 up to
0184.
a) World Production
World vegetable production from 2002-2006 is steadily increasing (See Annex Table 1). This
is lead by Asia by a wider margin over Europe, the second largest. In year 2006, Asia
captured 72.51% of the world’s production, Europe 11.50% and Africa 6.49%.
%
Continent 2002 2003 2004 2005 2006
Growth
Africa 46,949,613 49,002,205 51,544,068 51,895,431 52,085,594 2.65%
North America 53,057,735 53,843,994 57,764,872 54,606,775 54,182,093 0.52%
South America 18,667,253 19,160,336 18,913,916 19,132,313 18,902,095 0.33%
Asia 511,140,989 537,109,837 554,772,810 569,167,420 582,092,028 3.31%
Europe 87,001,210 91,810,077 96,429,525 93,807,555 92,294,973 1.56%
Oceania 3,313,560 3,118,408 3,367,040 3,247,876 3,246,124 (0.38%)
World Total 720,130,360 754,044,856 782,792,230 791,857,370 802,802,907 2.77%
Source: FAOSTAT | © FAO Statistics Division 2008
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Vegetable Industry Profile-Municipality of Lantapan 3
The average annual growth rate from 2002 to 2006 of the world’s vegetable production is
pegged at 2.77%. The top three continents in terms of average annual growth rate are Asia
at 3.31%, followed by Africa at 2.65% and Europe at 1.56%.
According to regional groupings, East Asia has the largest production in 2006 with 402.72
million metric tons, followed by South Asia with 105.17 million metric tons and North
America with 37.57 million metric tons. This represents 50.2%, 13.1% and 4.7% to the total
world production, respectively.
b) Asian Production
Asia’s vegetable production grew at an average of 3.31% from 2002 to 2006 (Table 7). In
2002, the region produced 511.140 million metric tons or 70.97% percent of the world’s
total production. In 2001, this volume increased by 70.951 million metric tons increasing the
region’s share to the world’s total vegetable production to 72.51%.
In 2006, China led in vegetable production in Asia with 377.225 million metric tons or 64.80
percent of Asia’s total vegetable production. India and Turkey followed with 81.672 million
metric tons and 21.917 million metric tons, respectively. The Philippines produced only
5.615 million metric tons or 0.96 percent of Asia’s total vegetable production.
Table 2. Vegetable Production, Selected Asian Countries 2002-2006 (in metric tons)
c) National Production
The Philippines’ total vegetable production in the Philippines totaled to 5.615 million metric
tons harvested from (Table 2) in 2002 to 2006 according to the Food and Agriculture
Organization (FAO). The average growth rate from 2002-2006 is pegged at 2.70%.
Table 3 shows the production volume of selected vegetables in the Philippines. From 2002-
2006, gourd (ampalaya, upo, etc.) grew at an annual average growth rate of 66.58%,
followed by lettuce with 27.56%and asparagus with 16.96%. Garlic, onion, cauliflower,
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Vegetable Industry Profile-Municipality of Lantapan 4
mungbean and cabbage showed a decrease in production with annual average decrease of
6.15%, 5.75%, 3.76%, 1.26% and 0.03%, respectively.
Table 3. Production volume (in metric tons) of selected vegetables, Philippines, 2002-1006
Growth
Crop 2002 2003 2004 2005 2006
Rate
Asparagus 12,566 15,211 22,367 25,231 21,938 16.96%
Broccoli 1,634 1,669 1,757 2,072 2,265 8.66%
Cabbage 91,368 91,982 92,782 91,439 91,243 (0.03%)
Camote 549,392 546,971 545,147 574,629 566,773 0.82%
Carrots 34,512 34,666 35,784 35,418 35,694 0.86%
Cauliflower 12,284 12,324 12,007 10,641 10,489 (3.76%)
Eggplant 179,659 176,991 182,753 187,793 191,911 1.68%
Gabi 101,155 100,705 102,274 109,700 111,942 2.60%
Garlic 16,257 15,529 14,999 13,234 12,581 (6.15)
Ginger 23,022 22,616 24,063 24,700 27,261 4.41%
Gourd 33,926 128,387 124,251 120,423 113,421 66.58%
Habitchuelas 11,847 11,549 11,856 12,049 13,493 3.44%
Lettuce 1,495 1,579 1,721 3,386 3,348 27.56%
Mongo 27,351 25,985 26,472 26,748 25,955 (1.26%)
Okra 25,254 22,992 24,913 25,958 26,709 1.62%
Onion 96,358 93,842 86,741 82,019 75,978 (5.75%)
Chinese Pechay 34,885 34,894 35,432 37,062 37,171 1.62%
Pechay (Native) 39,684 41,288 41,339 43,578 43,077 2.11%
Tomato 149,259 150,055 172,344 173,740 175,596 4.32%
Ube 26,238 27,884 28,526 29,256 30,074 3.48%
White Potato 67,540 68,050 69,456 70,160 69,461 0.71%
TOTAL 1,535,686 1,625,169 1,656,984 1,699,236 1,686,380 2.39%
Source: Crop Statistics of the Philippines (National and Regional), Bureau of Agricultural Statistics, 2007
By island group (See Table 14), Luzon produced 1,372,957.32 MT representing 73.14% of the
national total in 2007. Mindanao followed with 303,794.35 MT (16.18%) and Visayas with
200,374.32 (10.67%). In terms of area devoted to production of vegetables, Luzon leads
with 130,803.28 hectares, representing 61.68% of the total Philippine area for vegetables.
Mindanao followed with 44,100.23 hectares (20.79%) and Visayas with 37,168.58 (17.53%).
The main vegetable production regions in the Philippines are the following: Cordillera
Administrative Region (CAR) with 350,295.63 MT (18.66%); Ilocos Region with 287,582.80
(15.32%); Central Luzon with 242,528.69 (12.92%) and CALABARZON with 187,639.92 (10%).
d) Regional Production
In terms of growth rates from 2006-2007, broccoli topped with an annual average growth
rate of 29.80%. Other vegetables with significant growth include cauliflower (27.32%),
chayote (18.32%), ginger (17.28%), gabi (15.22%) and sweat peas (14.80%). On the other
hand, production volume of asparagus, lettuce and gourd experienced negative growths
decreased for the same period with annual average growth rates of 2.23%, 2.94% and
2.20%, respectively.
Looking at the share of each province (Table 4) to the total vegetable production volume
produced region-wide shows the province of Bukidnon as the top producer contributing
almost half of the total volume produced in Northern Mindanao at 67,430.59 MT (47.93%).
This is then followed by Misamis Oriental with 22.18%, Lanao del Norte with 19.04%,
Misamis Occidental with 6.75% and Camiguin with 0.77%.
Table 4. Vegetable production volume (in metric tons) in Region 10 with breakdown per province,
2005-2007
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Vegetable Industry Profile-Municipality of Lantapan 6
e) Provincial Production
Vegetables produced from the different vegetable producing regions of the Philippines are
primarily marketed in key Philippine cities such as Manila, Cebu, Iloilo City, Cagayan de Oro
City, Davao City, Bacolod City, General Santos City, and Zamboanga City.
Vegetable products of Region 10 are shipped mainly to wet markets in Manila and in other
major cities of Visayas and Mindanao such as Cebu, Iloilo, Bacolod, Zamboanga, Davao,
Butuan and Palawan. The presence of regular flights and trips of boats and buses plying
these areas warrant convenient flow of these commodities. Refrigerated vans of CRYO,
likewise, enable shipment of highly perishable leafy vegetables like lettuce.
As shown in the existing vegetable distribution channels diagram (Figure 2) in the region, it
is noted that the consolidators are vital in the distribution process. Consolidators are the
ones who gather or consolidate vegetables from different sources/ farmers for distribution
to wholesalers. The last level of traders then distribute these vegetables by land, sea and air
to other provinces in Mindanao and Visayas and other major cities such as Cebu and Metro
Manila.
With the present distribution channel, the probability of loss due to spoilage of vegetables is
high due to the long distribution process. The presence of a farm produce terminal market
or a trading post will address the problem on high incidence of spoilage. This idea came
about during one of the workshops with the vegetable industry stakeholders.
Estimated volume of vegetables shipped by sea bound for Manila and other major cities in
the Visayas from the port of Cagayan de Oro accounted for 79 percent of the average
production volume of the Region while vegetables shipped by air bound for Manila was only
four percent. The remaining 17 percent was distributed locally and to other cities in
Mindanao.
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Vegetable Industry Profile-Municipality of Lantapan 8
Figure 2. Existing Marketing Distribution Channel of Vegetables
Farmer/Grower
Northern Mindanao
Consolidators
Compradors
Wholesaler-Retailer Wholesaler-Retailer
Cagayan de Oro City/ Cebu/Other Provinces
Other Provinces in in Visayas
Mindanao
Retailer/Supermarket Retailer/Supermarket
Cagayan de Oro City/ Cebu/Other Provinces
Other Provinces in in Visayas
Mindanao
Institutional Buyer
Institutional Buyer
Cagayan de Oro City/
METRO MANILA Cebu/Other Provinces
in Visayas
Other Provinces in
Mindanao
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Vegetable Industry Profile-Municipality of Lantapan 9
EXECUTIVE SUMMARY
A. Barangays Covered
The industry covers all the 14 barangays of Lantapan, Bukidnon because topography,
climate and soil type of these barangays favour the growth of diverse kind of vegetable,
from temperate to tropical. However, this paper focuses on the major vegetable-producing
barangays in the municipality: Basac (3,705 ha.), Kibangay (5,090 ha.), Cawayan (1,452 ha.),
Victory (1,123 ha.), Songco (4,304 ha.), Kaatuan (3,976 ha.), Kapitan Juan (1,978 ha.), and
Alanib (4,812 ha.). (See Figure 1)
Figure 3. Map of Lantapan, Bukidnon showing the major vegetable-producing barangays of the municipality
(shown in grey)
The eight barangays covers an aggregate land area of 26, 440 hectares (264.4 km2), covering
almost 75% of the total land area of the municipality of Lantapan (35, 465 ha or 354.65
km2). Around 46% of the total area of the eight (8) barangays or approximately 12, 251
hectares is classified as alienable and disposable while the remaining (about 54%) is
classified as timberland located within the boundaries of the Mount Kitanglad Range Natural
Park, where cultivation and intrusion is strictly prohibited.
By volume, the top vegetables are broccoli, cabbage, lettuce, Chinese cabbage, potato and
sweet pepper. These crops are produced in Kaatuan, Capitan Juan, Songco, Victory,
Cawayan, Basak and Kibangay. These areas have been producing massively since the 1950’s.
The average size of land utilized for vegetable production by a small-scale farmer ranges
from 1/8 to ¼ of a hectare. While most farmers own the lands they till, some farmers still
rent their lands at P2, 000 per hectare per year.[b]
Small-scale farmers dominate the vegetable industry of Lantapan. Data provided by the
Municipal Agriculture Office (MAO) of Lantapan, Bukidnon showed that there are 2, 850
farmers in the municipality in 2007 tilling 593.23 hectares of vegetables farms. About a third
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Vegetable Industry Profile-Municipality of Lantapan 10
of these farmers tilled lands of less than 3 hectares. Only about five percent of the farmers
surveyed have landholdings of more than eight hectares. In terms of ownership, about 55%
of the farmers surveyed owned the land that they are tilling. Another 34 % of the farmers
surveyed lease their lands from the owners. Still other farmers have their own lands but
they still rent other parcel of land.
Farmer organizations have been organized especially in top vegetable producing barangays.
The Lantapan Eco-Agro Forest Farmers Association (LEAFFA), based in Songco, Lantapan
provides community-based livelihood activities for their members aside from vegetable
farming to augment their member’s income. There are also NGO-organized farmer’s
organizations such as the Paglambu-Landcare Farmer Association, a municipal-wide
organization encompassing vegetable farmers practicing agro-forestry and organized by the
World Agroforestry Center (ICRAF). ICRAF provides support thru farming systems advocacy
as well as market linkaging support for their farmers by organizing them as vegetable
clusters.
Large-scale vegetable farms also operate in the municipality. Among them are RSY Farm and
Full View Farm in Barangay Kibangay, Micabalo’s Farm in Barangay Songco, Cyper Farm in
Barangay Victory, and Three Kengi’s Farm in Barangay Capitan Juan .These large farms are
members of the Northern Mindanao Vegetable Producer’s Association (NorminVeggies),
Inc., a producer’s association based in Cagayan de Oro City. NorminVeggies provides
marketing assistance through its NorminVeggies Consolidation Center (NVCC) in Agora
Market, Cagayan de Oro City. [a]
The vegetable industry of Lantapan, Bukidnon has a total of 2,850 farmers that own and till
their lands in 2007, according to the data from the MAO-Lantapan Office. Based on the
survey conducted in 2006 to vegetable farmers in Lantapan, it is estimated that the
vegetable industry is capable of employing approximately 1, 800 workers, in which 29% are
full time employees, 24% are part time employees and around 47% seasonal workers.
Seasonal workers are usually hired during maintenance and harvesting of the vegetable
produce.
Lantapan is one of the major producers of vegetable in the province. In 2006, the
municipality produced more than 2,983 metric tons of fresh vegetables harvested from an
estimated production area of 618 hectares (See Table 18 and Table 19)
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Vegetable Industry Profile-Municipality of Lantapan 11
SCOPE AND LIMITATION
The data used for this industry profile was gathered from a number of sources, including the
Municipal Agriculture Office (MAO), Department of Trade and Industry (DTI), Bureau of
Agricultural Statistics (BAS) and Food and Agriculture Organization (FAO). Primary data came
from the survey conducted to vegetable farmers conducted by the Department of Trade &
Industry (DTI) in coordination with the Municipal Agriculture Office (MAO) of Lantapan.
Secondary data used are the production data (area harvested and production volume)
obtained from the Food and Agriculture Organization (FAO), Crop Stat of the Bureau of
Agricultural Statistics (BAS), Department of Agriculture-Regional Field Unit 10 (DA-RFU 10),
BAS-Bukidnon Provincial Office, and the Municipal Agriculture Office (MAO) of Lantapan.
These is some disparity in figures as the industry-collected data and data from the different
sources are not always in accord.
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Vegetable Industry Profile-Municipality of Lantapan 12
STRUCTURE OF THE INDUSTRY
A. Product Coverage
The One Town One Product (OTOP) Program of the municipality is high value vegetables but
the municipality focuses on six products, namely: broccoli, sweet pepper, carrots, cabbage,
celery and tomato.
Lantapan is in central Bukidnon and is bounded in the north by the municipalities of Sumilao
and Impasug-ong, in the east by Malaybalay City, in the south by Valencia City separated by
Manupali River and in the west by Talakag.
Vegetables area is produced in barangays in the northwestern portions including Basak,
Kibangay, Songco, Victory, Cawayan, Songco, Alanib, Capitan Juan and Kaatuan. These
barangays are located within the boundaries of the Mt. Kitanglad Range Natural Park.
Around 70% of the area in Lantapan has strong sloped above 18%. The rest are slight to
moderately rolling terrain (8% to 18%). The predominant soil type in Lantapan is clay soil
(Adtuyon and Kidapawan clay). Elevation ranges from 1, 100 meter and 1, 240 meter. Basac
is 1, 100 meter above sea level, Cawayan is a 1, 240 meters, Kibangay is at 1, 200, Victory at
1, 280 meters, Songco at 1, 135 meters, Kaatuan and Capitan Juan at 2, 150 and Alanib at
800 above sea level.
The municipality’s climate falls under Type IV with no very pronounced rainfall or dry
period. Rainy months are July-September. Rainy season may start as early as May and
extend to December. Average rainfall is 224.54 mm. There have been no cases of typhoons
or floods. Air temperature averages 21.84°C with little fluctuation at 2°C between warmest
and coldest temperature.
C. Market Performance
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Vegetable Industry Profile-Municipality of Lantapan 13
Almost 99% of the vegetable produce in the municipality are sold to the outside market.
Majority of the production find their way to the Agora Market of Cagayan de Oro through
the “viajeros” and “jamboleros” that pick up the farmers produce in the area. Some farmers,
who are members of the NorminVeggies producer’s association, deliver their products to
the group’s consolidation center. This is then sold to markets outside Cagayan de Oro
(Manila and the Visayas markets). Small portions are sold in the public markets of
Malaybalay and Valencia.
The table below shows market performance of the focused products under the One Town
One Product (OTOP) program of the municipality using the computed value from year 2003
to 2007. Data used for the computation came from the Municipal Agriculture Office for the
volume of production and the Bureau of Agricultural Statistics (CropStat) website for the
farm gate prices.
Table 6. Estimated value of production (in Php) of focus vegetable crops under the One Town One
Product Program (OTOP) of Lantapan, Bukidnon, 2003-2007
D. Production Volume
Table 7. Total production area and volume of
production of MAO-monitored vegetables
Table 7 shows the total area planted and the
Year Area Planted (Has.) Production (MT)
total production of volume of vegetable 2003 477.46 4,281
products produced in Lantapan, as monitored 2004 408.63 3,604
by the Municipal Agriculture Office (MAO) of 2005 481.75 3,656
Lantapan, Bukidnon. The data showed that 2006 770.25 8,291
the volume of vegetable decreased by as 2007 618.50 2,983
much as 64% from its 2006 level. In 2006, there was a dramatic increase in area planted to
tomato and cabbage from resulting in larger production volume.
Table 8. Estimated volume of production (in metric tons) of vegetable crops under the One Town
One Product Program (OTOP) of Lantapan, Bukidnon, 2003-2007
5-Year
Crop 2003 2004 2005 2006 2007 Total
Average
Broccoli 189.00 160.00 250.00 609.00 166.40 1,374.40 274.88
Sweet Pepper 65.28 137.50 110.00 163.40 127.50 603.68 120.74
Carrots 156.00 10.00 225.00 338.10 122.80 851.90 170.38
Cabbage 838.00 510.00 962.50 1,058.40 371.50 3,740.40 748.08
Tomato 1,175.00 950.25 157.00 1,993.50 710.00 4,647.25 929.45
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Vegetable Industry Profile-Municipality of Lantapan 14
Tomato, as shown in Table 8, is the major product of the Table 9. Top 10 vegetables of
Lantapan in terms of volume
municipality in terms of volume of production, churning
out an average of 929.45 metric tons per year from Average (2003-
2003-2007. Lantapan produced an estimated 710 metric Rank Crop
2007)
tons of tomatoes in 2007, down by 64% from its 1, 1 Tomato 997.15
993.50 metric tons in 2006. Large areas of tomato are 2 Cabbage 748.08
found in Kibangay, Songco, Cawayan, and Victory. 3 Chinese Cabbage 523.93
4 Squash 492.22
Cabbage is also produced in large quantities peaking at
5 White Potato 280.22
1, 058.40 metric tons in 2006. Lantapan produced an 6 Brocolli 274.88
average of 748.08 metric tons of cabbage annually from 7 Cauliflower 220.06
2003-2007. Cabbage in mainly produced in Kiabangay, 8 Sayote 211.94
Basak, Songco, Cawayan and Victory. 9 Sweet Potato 180.54
10 Carrot 170.38
Lantapan also produced 274.88 metric tons of broccoli, Source: Municipal Agriculture Office, Lantapan
170.38 metric tons of carrots and 120.74 metric tons of
sweet pepper annually from 2003 to 2007. Most of the crops reached record levels of
production in 2006 and dropped in 2007.
Table 9 shows the top ten vegetables in terms of production volume from 2003-2007 in
Lantapan, Bukidnon. Four of the crops in the top ten vegetables are focused products under
the One Town One Product (OTOP) program of the municipality.
E. Resource Assessment
Production Areas
In 2007, the municipality of Lantapan has 628.50 hectares of land area devoted to
vegetables. The top ten vegetables in the municipality, in terms of area harvested are
shown in Table 10. Majority of these vegetable
production areas are in Basak, Kibangay, Songco, Table 10. Top 10 vegetables of
Victory, Cawayan, Songco, Alanib, Capitan Juan and Lantapan in terms production area
Kaatuan. The total alienable and disposable (A & D)
Average
of these eight barangays is estimated at 12, 251 Rank Crop
(2003-2007)
hectares planted to other crops or lying idly and 1 Cabbage 90.00
uncultivated. In the eight barangays alone, there is 2 Tomato 76.57
plenty of room for expansion for vegetable 3 Chinese Cabbage 64.20
production purposes (more than 11,000 hectares). 4 Squash 46.49
5 White Potato 40.46
Furthermore, there are still other barangays with
6 Brocolli 34.85
potential for vegetable production, especially for 7 Cauliflower 32.65
tropical types of vegetables in the lower elevation 8 Sweet Pepper 28.88
areas of the municipality. The climate for Lantapan is 9 Sweet Potato 28.07
ideal for vegetable production and vegetables can be 10 Baguio beans 19.35
Source: Municipal Agriculture Office, Lantapan
planted the whole year round.
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Vegetable Industry Profile-Municipality of Lantapan 15
Table 11. Estimated area of production (in hectares) of focus vegetable crops under the
One Town One Product Program (OTOP) of Lantapan, Bukidnon, 2003-2007
5-Year
Crop 2003 2004 2005 2006 2007
Average
Broccoli 27.00 16.00 25.00 50.75 55.50 34.85
Sweet Pepper 21.76 34.38 27.50 21.50 39.25 28.88
Carrots 13.00 5.00 15.00 24.50 40.10 19.52
Cabbage 104.75 63.15 96.25 98.00 87.83 90.00
Tomato 58.75 63.35 88.50 110.75 61.50 76.57
Among the focused vegetables under the OTOP Program of the municipality, the area
devoted to cabbage is 90 hectares annually is the largest. Tomato has 76.57 hectares,
broccoli has 34.85 hectares, sweet pepper has 28.88 hectares, and carrots 19.52
hectares annually from 2003 to 2007.
Labor Supply
Labor is readily available in the vicinity of the major production areas. Labor rates vary
from the services being rendered by the laborer (i.e. plowing-200/day, harvesting
100/day, etc.). Although at present, there has been a stiff competition from
multinational companies operating in the municipality and which offers higher wage
rates compared to the farmer’s rates.
Technology
Almost 99% of the farmers in Lantapan use conventional method of vegetable
production that relies heavily on expensive chemical inputs such as fertilizers and
pesticides.
Offsite Infrastructure
i. Farm-to-Market Roads (FMR)
Poblacion Lantapan is 140 kilometers from Cagayan de Oro City and 30 kilometers from
Malaybalay. From the main highway (Crossing Aglayan, Malaybalay City), Lantapan is 15
kilometers over a combination of cemented and gravel roads.
The national road passes through all the barangays and is connected to Talakag through
Barangay Basak, Lantapan and Barangay Lirongan in Talakag. Farms located near the
national highway are generally accessible and farmers have little problem bringing their
produce to the roadside. Farmers with farms located in the hinterlands are the ones that
have difficulty in bringing their products to the market, because of the very poor
conditions of the road.
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Vegetable Industry Profile-Municipality of Lantapan 16
All barangays in the municipality is already energized by the Bukidnon Second Electric
Cooperative (BUSECO) although there are far-flung sitios in the mountainous areas that
were not energized.
Market Structures
No permanent market structures are present in Lantapan, except in the Lantapan Public
market. Temperate vegetables are seldom sold in the market. “Jamboleros” and
“viajeros” bound for Agora Market bypass the Lantapan Public market.
Retailers procure their vegetable supplies from the Malaybalay Public market.
Vegetables sold inside the market are mainly tropical such as string beans, squash,
onions and spices.
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Vegetable Industry Profile-Municipality of Lantapan 17
F. Support Structure
Production Inputs
ii. Financing
Most vegetable farmers in the municipality are self-financed but their capital is not
enough to produce in amounts to take advantage of economies of scale[c] but still others
rely on the buying agents (“bodegeros”) in Agora Market, Cagayan de Oro City.
Although many of these farmers are self-financed, they turn to non-institutional sources
such as traders, bodegeros and other farmers for production loans. Financing schemes
vary among crops and growing conditions. Usually, the financier provides production
loans in the form of cash and specific farm inputs (a scheme locally known as
“dextrose”). At harvest time, some financiers collect a fixed amount of money from
every kilo or crate of produce sold by farmers as repayment for the loans made by the
farmer. [d]
Technical Support
The Municipal Agriculture Office of Lantapan provides technical support to all vegetable
farmers in the municipality. The MAO Office periodically conducts activities aimed at
improving the skills of the farmers such as Farmers’ Field Schools (FFS) to train them on
Integrated Pest Management (IPM) techniques. Technology trainings are conducted
when new technology is introduced to them. Organic farming and the use of bio-control
measures in farming was already taught to the farmers and have adequate knowledge
on the subject matter. However, there are no known strict practioner of this technology
in the municipality.
G. Supply-Demand Situation
The vegetable industry of Lantapan churns out an average of 4, 562.91 metric tons of
vegetable annually from 2003 to 2007. Basing from the annual per capita consumption of
Filipinos of vegetables, which stood at 26 kilograms annually and the present population of
the municipality at 51, 406 inhabitants as of August 2007, the total estimated demand for
vegetables within the municipality stood at 1, 336.56 metric tons although actual
consumption could be actually lower than this. Therefore, there is an estimated surplus of 3,
226.35 metric tons of vegetables that could be marketed outside of the municipality
annually.
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Vegetable Industry Profile-Municipality of Lantapan 18
H. Major Issues Confronting Sector
During the One Town One Product (OTOP) Strategic Planning and Action Planning Activities
conducted in March and June 2006, in which OTOP stakeholders that included farmers, non-
government organizations (ICRAF), national government agency (DTI) and the Local
Government Unit (LGU), issues and problems were discussed with regards to the present
status of the industry. These issues can be grouped into marketing, production, human
resource development and resource generation. These can be summarized as follows:
No unified and established vegetable producers association identified in the
municipality
In-operational trading post and the need to establish a trading post in the lower
portion of the municipality to accommodate the majority of the vegetable-barangays
Heavy usage of chemical inputs (fertilizers and pesticides)
Insufficient skilled labor for vegetable production due to competition by
multinational companies operating in the municipality, which offers higher wages
compared to what’s offered by the farmers.
Lack or non-existence of vegetable processing activities in the municipality on a
commercial level. Processing can extend the shelf life of the vegetables and could
augment the meager income of the farmers
Insufficient capital or financing for vegetable farmers. Farmers also have difficulty in
accessing loans from banks due to very stringent requirements forcing them to
access non-institutional financing intermediaries which have offers easy capital but
the capital is very high
Lack of promotion of vegetable consumption to address malnutrition particularly
among children. Vegetable consumption within the municipality if low because most
of the vegetables produced go to the outside market.
High post harvest losses that can be attributed to many factors such as inadequate
post-harvest technology, poor farm to market roads, absence of cold storage
facilities, etc.
High costs of production inputs such as chemical fertilizers, chemical pesticides and
hybrid seeds
Lack of production programming and complementation across production areas
resulting to gluts in the market and dampening of prices
Lack or complete absence of Research and Development (R&D) studies to match
market requirements and needs of farmers in vegetable production
Inadequate and poorly maintained infrastructure facilities necessary for vegetable
production such as farm-to-market roads, trading posts, and packing sheds resulting
in increase in marketing costs due to post harvest losses. There is also lack of
irrigation in some key vegetable production areas, diminishing their productivity.
Low and very unstable prices for vegetable products.
Peace and order problems in the major vegetable producing barangays such as
Basak, Kibangay, and Songco.
Pest and diseases regularly cause huge losses on the farmers. There is also an
absence of new pest control technologies that is affordable to the farmers.
Poor condition of soil used for vegetable production caused by erosion. Some soils
have very high acidity rendering them unsuitable for vegetable growing.
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Vegetable Industry Profile-Municipality of Lantapan 19
High trucking fees going to their market
Lack of seminars and training for majority of the vegetable farmers in the
municipality. Extension services, although being given by the LGU, is inadequate.
Form of transportation used is inappropriate causing huge post harvest losses on the
farmer. Handling of vegetable products is also inefficient causing damage to the
vegetable produce resulting in, again, post harvest losses due to spoilage.
Inefficient marketing system, in which the products passes through many hands
before reaching the intended market.
Deterioration in the values and culture of the vegetable farmer. Farmers also lack
the drive to participate in farmers’ organizations such as coops, associations or
clusters due to the seemingly lack of organizational management skills.
Insufficient attention given by the Local Government on vegetable farming.
I. Opportunities
There are also projects that are currently being undertaken by the Department of
Agriculture—Regional Field Office 10 (DA-RFU 10) in partnership with LGU-Lantapan thru
the Municipal Agriculture Office that complements the requirements of the vegetable
industry in the municipality. The Mindanao Integrated North Coast Area Development
Project (MNCIADP) and the Mindanao Rural Development Project (MRDP)-CFAD has
infrastructure, livelihood and training components for the vegetable farmers.
The increasing population of the municipality as well as the country can also benefit the
vegetable industry of the municipality with increasing demand for food products such as
vegetables.
Lifestyle, well-being, convenience, safety, cleanliness and social responsibility have been
identified as critical issues in the food industry worldwide for the next 10 years. This is
represented by the increase in demand of organic products, including vegetables. This could
be an opportunity for vegetable farmers in Lantapan to cash-in on such products.
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Vegetable Industry Profile-Municipality of Lantapan 20
PROSPECTS OF THE INDUSTRY
The present trend in agriculture is towards the production of safety and clean foods for the
consumer brought about by the increased awareness of the consumers about the health
benefits as well as the risks of eating “unsafe” and “unhealthy” food products. Farmers all
over the world are shifting their production from conventional to organic way of vegetable
production to answer this consumer demands. Aside from the health-awareness of the
consumers, lifestyle and convenience especially of people in urban areas are factors that
should be taken into account in the coming years. Consumers are beginning to be
accustomed to a “fast” way if living. They tend to purchase “ready-to-cook” products that
are convenient with their way of living.
Another factor that will greatly affect the vegetable production in the country is the
increasing presence of imported products brought about by the entry of the Philippines into
the World Trade Organization (WTO). WTO aims to reduce or eliminate the barriers that
hamper trade in its member countries. Vegetables from China and other major vegetable
producers, cheaper and in greater quantities continue to enter into the Philippine market,
creating stiff competition with vegetables produced domestically, which are far more
expensive. Thus the trend in the Philippine vegetable production is to drastically reduce the
production costs so that we can price our products at par or lower with imported
vegetables.
Finally, the increasing Philippine population, which stood at 88.57 million, is a potential
market for the vegetable producers in the country.
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Vegetable Industry Profile-Municipality of Lantapan 21
REQUIREMENTS OF THE INDUSTRY
Using Figure 4, Industry Cluster Diagram for High Value Vegetables, as reference the high
value vegetable industry of Lantapan requires the following to boosts its development:
Small water impounding projects for key vegetable areas that do not have sufficient
irrigation
Improvement in the road network of the municipality especially the farm-to-market
roads
Vegetable trading post or consolidation area (“bagsakan”)
Cold chain facility with reefer vans
Trainings and seminars for farmers (farming methods, production of organic
fertilizers, bio-pest control methods and other technologies)
Packing sheds
Skills Training on vegetable processing (basic and upgrading)
Organization of farmers into vegetable clusters or farmer-producer association
Research and development (R & D) research
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Vegetable Industry Profile-Municipality of Lantapan 22
Figure 4. Vegetable Industry Cluster Diagram
Fertilizer/ Planting
Propagation
Technology Labor Materials
Mat’ls
Fertilizers & Eqpt
Chemicals
Growing
Ethylene
Absorber, Transport Reefer Vans
Eqpt/Chemicals
Supermarket Wholesale
Food Industry Food Service
Consumer
Consumer Retailer Food Food Service
Industry
Consumer
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Vegetable Industry Profile-Municipality of Lantapan 23
REFERENCES
Lantapan Municipal Comprehensive Land Use Plan. Published by the Local Government of
Lantapan, Bukidnon. 2005
The Philippine Vegetable Industry Trends, Issues and Policy Implications. Published by the
Regoverning Markets Program. URL:
http://www.regoverningmarkets.org/en/resources/se_asia/the_philippine_vegetabl
e_industry_trends_issues_and_policy_implications
Temperate Vegetables in Mindanao: Key Production Areas. Published by the Growth with
Equity in Mindanao (GEM) Program. August 2000.
The Vegetable Production Areas of Mindanao: Key and Potential Profiles. Published by the
Northern Mindanao Vegetable Producers Association, Inc. and the Vegetable
Industry Council of Southern Mindanao, Inc.
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Vegetable Industry Profile-Municipality of Lantapan 24
ANNEXES
Table 12. World vegetable production (in metric tons) by continent and regional groupings, 2002-
2006
%
Continent 2002 2003 2004 2005 2006
Growth
Africa 46,949,613 49,002,205 51,544,068 51,895,431 52,085,594 2.65%
East Africa 6,297,409 6,545,130 6,657,228 6,627,478 6,633,670 1.32%
Middle Africa 2,465,083 2,374,263 2,352,873 2,385,180 2,344,169 (1.23%)
North Africa 23,567,043 25,105,064 27,094,495 26,915,413 27,025,796 3.55%
South Africa 2,179,083 2,292,459 2,257,324 2,242,316 2,034,456 (1.57%)
West Africa 12,440,995 12,685,289 13,182,148 13,725,044 14,047,503 3.09%
America 71,724,988 73,004,329 76,678,787 73,739,088 73,084,188 0.52%
North America 38,154,061 37,380,455 40,046,431 37,600,096 37,567,674 (0.27%)
Caribbean 4,393,115 5,051,929 5,206,147 4,356,785 3,832,552 (2.57%)
Central America 10,510,559 11,411,610 12,512,294 12,649,894 12,781,867 5.09%
South America 18,667,253 19,160,336 18,913,916 19,132,313 18,902,095 0.33%
Asia 511,140,989 537,109,837 554,772,810 569,167,420 582,092,028 3.31%
Central Asia 6,172,329 6,991,741 7,317,160 7,693,860 8,423,843 8.14%
East Asia 352,849,591 369,180,968 380,802,439 390,395,336 402,719,625 3.36%
South Asia 90,923,533 99,270,309 101,537,960 104,649,071 105,173,199 3.76%
South-East Asia 26,310,115 27,645,711 29,079,240 28,882,800 28,840,911 2.36%
Middle East Asia 34,885,421 34,021,108 36,036,011 37,546,353 36,934,450 1.50%
Europe 87,001,210 91,810,077 96,429,525 93,807,555 92,294,973 1.56%
Eastern Europe 31,091,881 36,134,371 36,910,488 35,934,871 36,751,668 4.50%
Northern Europe 4,254,838 4,526,060 4,428,779 4,574,691 4,387,807 0.86%
Southern Europe 34,484,071 35,137,555 37,568,522 36,716,059 35,126,167 0.55%
Western Europe 17,170,420 16,012,091 17,521,736 16,581,934 16,029,331 (1.50%)
Oceania 3,313,560 3,118,408 3,367,040 3,247,876 3,246,124 (0.38%)
Australia and N. Zealand 2,728,284 2,532,334 2,774,807 2,653,891 2,653,891 (0.49%)
Melanesia 535,081 535,422 542,976 544,486 544,570 0.44%
Micronesia 14,058 14,054 12,683 14,469 12,633 (2.10%)
Polynesia 36,137 36,598 33,914 35,030 35,030 (0.69%)
World Total 720,130,360 754,044,856 782,792,230 791,857,370 802,802,907 2.77%
Source: FAOSTAT | © FAO Statistics Division 2008
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Vegetable Industry Profile-Municipality of Lantapan 25
Table 13. Volume of production (in metric tons) and production area (in hectares) for vegetables in
the Philippines with breakdown per region 2007
Table 14. Volume of production (in metric tons) and production area (in hectares) for vegetables in
the Philippines with breakdown per island group 2007
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Vegetable Industry Profile-Municipality of Lantapan 26
Table 15. Volume of selected vegetables in Region 10 – Northern Mindanao from 2005-2007
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Vegetable Industry Profile-Municipality of Lantapan 27
Table 16. Production area (in hectares) of selected vegetables in Bukidnon 2002-2006
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Vegetable Industry Profile-Municipality of Lantapan 28
Table 17. Volume of production (in metric tons) of selected vegetables in Bukidnon, 2002-2006
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Vegetable Industry Profile-Municipality of Lantapan 29
Table 18. Area planted to selected vegetables in Lantapan, Bukidnon 2003-2007
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Vegetable Industry Profile-Municipality of Lantapan 30