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UP School of Economics
Discussion Popers

Osc!$lon Poper No 2012-07 Morch 2012

Bdndnd Productlon dnd cooperoliver ln the Phllpplne3

tyofihPhpp]nasschooo'Economics

circlldied pdvolery
uPsE Discu$ion Pdpe6 ore pteLmino,y veftions
loelcil cnlico commeds.rh6y ore proiecled byRepubic Ac1 No.3293
ond oE norforquoloro. d reg nlino wifrout pto. opprovol.
 Ban.na Prcduciion .nd cooperaiv@ in rhe PhlliPpin.s

Absttact

lhe socioonmi. siturion of snsll boana gs9s sendt d a lot of is.u* mons
rsarches How*q the situdion rna$kally ch4s.d besuse land dkdiburion bsme posibl.
through the colbdn c.nifi.ate of Lmd omenhip (cLoA) issun@ bd* ln. CARF cLoA k
hsued ro coopddne! .omposd ol aq? n relom beneficiai6 (ARB9 Thc 6nhd sroqing
$hene \r$ simdtmeouslr' &e AEibsin6 vmN
.{roes. (Avr) to suppon cARPt inplen.nbrion Undd L\is am.m*, rh! Individu.l
famiDg Sr {.m (Fs) is intoduEd rhdin rhe cto*{ oMs all b,ms he ptodu..d in his ssign.,
lor ,siing hid hien in.e$i*s in his lors prcdudion Thu, rhc IFs k rhe initial sbp in gmsding
rLf.r.llst gros.is. Th. prp.r conclud.s rhd st.nsrhciins thc coopdriv.\ govmtbilitv k
*sdrialii stuining ih. susBiiabiliq orft.lls.

banmaprcdudion,cooP'ariv.,agtrimEfomb6.ficieis,AgrjbDsines
conmdqoNing, coll.divec*ineEoflmdoM$hipAvdd, IndividualFmingsvsh
 . on Ihe econonns or $ale in commerchl .rcps

lollows the rdvanbes of.onoRt pro enr by rhe coopmrlve.

on comm dd limns. h rlso erplain rclrtonship bedv*n rhe

Rdom Prceam (CARP)

S$lor ! prc*n6 rhs $aly!: or rhe dda and iilomdjon obbined ftom ft inte-_iess
..il!fl.3orr0trrbrlmpodu.iigcooos iv6lnMiiddso h relates the qp* or AvA $hems
udioi msnaeemed rdrpred by rhe eid .ooDftlivc.

our die mLe phyed of the hnd refom. AvA $d $e

s)n@ Flnc\rolk ro ocoumsiic coop djve menbsr

ing
{hi.\.*Lr'rlift *irhiidcn,srign.d106pro ion.dby$e.oopddive\consensus.

ir is the c:vendish vfilrr rhar ge

sed bj' ria.z% Yi.ld3Lso inoeded no

b J! nr,ht ii r0 r0 (r$h r).

raher BanaiaPrcducrion(cavendish)t2003.2010)

souikB!fudAgraluE9m5e
 odr'nd)Tshd" r'kr

ll-2. ThS.n. Fe.tuEsotthePhilippineBananainduslry

ll-21. MNCSC tntted Ma*et
1n lmportant ch ftrhti.orrhe Philipp in. eipon b3nm, iidNny isrhedonidjonorrhe
nuLrL n onsLco4oErioc (MNCE i
c.nprn! usA), chiqun. Brands lntm ioml (usA) md Dd Mmr Fiesh hodrce (uDitd Arab
lrr1ks lle$o) Dore Foods. iow rhe rorld hrees tresh 6uir ftdiry companr h6 ovetuken
iddcd h,ve .dntol dvd 25 10 ?6
prcduer fd disribddr rd! dc
siha 'o
!i,r. r.iore fi. r ss0s. tr6 EcqrL) b
D:r rJom FBh ftoducL. rhc {orLd
l6 "oonhe b.Dam mde

chiquira app.rs 10 haL fie mo$ .on$ djve busines srdee/ sd rhe hiene$ risk in
bamna produdron rr d*ls yhh on y one srolqj *hicb is rhe Taslm Deretopmenr Corponrtoi
 PPinB s *ell OYErPoducrior in rhe fh
rhus, pmsh.brlity .fieds hor rhe osr
Ihe olisopolisric stuctuE or ihe basa pmdud ion is lalgdy mm*td qith rhe renilly
intgrdcd opElions of MNcs. The* omprnEs anbol a1l 6p*h of prcdudion and mr.agemenr
liom seed devdopnent/.ulriveion ip ro r}e ddilcry or bbrms 10 rhe .oisu

of re frlgdded veseh. induding nong. $d n o.iing r!. il iries, dd emp Loy

iqwork. venical inregdion enabls 6-
and hden rhdqbr sdins rheru*o
cri.ouiitrotrsLJ suPptr cotrlmss a

EconomieE of Sc.r and P6dudion6r commercr.rc6ps

LI

ln rnr producrion rcrjviq, em.i.i.)_ in pmdudiotr vries \vhh n\e qutrtiq of the ou9trr

eofallinpu6. rD rhe.6e of$e cofrne.cial eopi produdion

ndjrioodrj undqsbod rhar rhe (on

$m rpp.ned by rhc dcFmnredon thd .g'Eulbral produdio0 in a larIe $ale plor.rior is moE
nasnall$alelam ro sunahacenajn cyc ofprodudion in
smn pdcrs G g. by rsnd crom) w
:\pded ror rrr producrioD ofcomm
thlream morq nom for.ign cxh.ngc, {hich is Gsdlhlror
$. modemiarion oft he cou'tr'.

Ph lrolLns hrve bei exempr.d rDi agrari!' reibm by the suce$ive !{lminisrdlons ln addnion,
onevido 6t4jallyjr
rhe rlld ol coconur and susa pmdud

Hlranj d 3L har e prciousLJ- nde ao enolvs fidd srEy on $e issus of rhe ecorcmies
0rQL. io PhjlippLne planhrions ofr
rand rrom PDsrans f rlre econo'ni
rhs, sen if sonomEs ol $rLe s
$Brini-d rhe ahmarive y,)s 10 dldeme fic rrcdudiyity bohten(k fia!h hpped naiy sma

DsLso sd B@b do (1001) p j.

14di aurlnbhg ad^di&o (19e0)
 Psnhabiri!- Tbe hdsied bsmm mu( be p?cked, $nr rot[e wrwt and roaded ro ?
rcfiigdred b.d *idrh a da} so a bodtuL ol b@ana rhal qn n*r rhe quaLlt iaadarn:
of rorcisn buyds nus be.oLl(td wnfi ! rcw d.js. Thftroq tbe vhoLc productior

N..d lor stric! P*r and Diseae c

conbgious djsa*s iicvilabl), m e s it.he phd speds is glom over r *de
conbguors rs Srid par lid disor.o rolm4$snud be app ied ovs rhe entne
*r mri.ki. rhe quatrti! hdqu,Ljlyorbbms
c.nshrcrior xtrd Maiitis.e ofrhe on.fam lnliashc.uE orlfam inn6hchB,
r.h r rb. o\dH.!d CabLe Propping (OHCP) sr$em u$d io bansDon the hatrese!
briffr ird6 rhc scld r rhe prcki.s planr should be provided a.d n?inbined i.
A consFtu irlgdion sr nem in rhe fam mus aLso be mai'rained.

I rood sreq aid orher qurLlry asunnr quted

Empioymcnr dhhc csuat \lorkds

hiren only du'ine peak se oDs. These slbdions

Findrr Hl)',hi od his group nLmm

st sy*en of a boana plolation and mddi4 ol r highLy
iLrdunbg. or, snal ram in rhjs rc8
po$ibLe rom ol oEaojarior $hi.h .4 be runaincd t coDbel sroNing vhsein muliinarionar
corpo rrotu bd rhe; colpomc Eo*
rcrnnies, {hile haviDts thc prcduc
dAdopmenr *ouLd be rft oeaianior of pmsp.ciive rcnrmr groveF inro sowe6 a$ochrions,
iviq bur dso $e bargsiiiig po$er o

.avail$le dda on banan! produdion h

b$e. pranEriotr grow.6 and smal

hl ricld (Tabh 6). comad sowing by smalt Eow s shows a posirive in

Hsjam QftrfrbhsdAd.ioo(ie3?)
Hayui auclmbii md A& oo (rre0)
 prdd$e6, Apcialry !he. iherc is vitually. nonopory in the marke.ing and p.oe5!D8

Co tul grdwiis allo\s plsnbrioi corpostions ro be

shielde,r 60n ft rdiu$med .o* 3s

4 Divslme,i d.n) Tine.

d oy rime. rn hct, e beginnins ro shift io
.ofulduallallon lor rhn aaso.. By sub conrrcdng raboi conDanies e6e6omrabor

ttt 2 2 ctiiique ol the cantftct Gtuwhq

.\rlondonoa .llban.nrsolenb
,\(o.dmcro rDoN rcse .h,rbcscdis

L Prcfir fron Expssive ',r.chnotogy

tus or $e hd$t, bsaue Ihe pro*ion of the inpd
15 Kru:lly a sh
made by the agrib Hokv?r, ne{ t.htuLogns or
ld'ensiys lamins ol yesebbLes, turs. sealood and liresoclt de mo.. asiLy pnmor4
dntibedmd$ldlhrcUghsntrclgfu*iig
A coitkr ruslly hs
an opei prici.! schene, *hiclr
ons entnbs ihe com e oi rhe
p3.y ro unilaterally dsjd p.ice vlai rhe famss g4 is fi
prelriliiemftkcrpricc!rlhdrineordeLivdy rhe pir d.rnds on iie qmLi6 of rhe
t$ ol, clss]figlion fubh' The clse olho\ PnE
compdjtio. bdqeen comprnies sllo*s smrll ero*ss to Ere8e on $e latur's oblisdjod
ro sclL rbc produc' b conpan) i. hrcr srriDe the sme b 6nd pMis (knoM in rlr
'hc
Phirippinsapor. surring)

wlrilc dplojhlioi is flli,.d thr ei, rhe sale or expen:ive

jopd: and seds. and bl lor*inc rhe pies or rhe hm d ou.pur, ilis locufrndcd
r[mugh , .r]de or "dcbr bondaee , ]hsc in 0y0ry h v.{ rsod rhe pi.e dfrdetre
aPensd Prcdud ccs added ro , gro*s\ debr

4 Dnd conEol contecr gowlns is a prt'h.diared *hene bj biB lo.al ?eribrsi,Es

8ndmufti-n ronircorro rionJ ro exr
g}, .apjhl 3nd makd,.lerch3't mn rea]ne pmlit
fion,gicuLrur bKome paf ofrh
 As, peruquiil.10 adooion ot rhe rFS, n h impotum io subdivide rlE phnhiion,nio
'ho
subdivnion of rhe phnhrion for hnd disibuiion may be psromdd b
individlal Lrd by dew lot. Thi5 rcqunes unanlmoG spptuval by rhe 6eHal As*mbly olrhe

collccriv. wo.ks B.c!u5c rhs hm n mdlged by rhe mop dive, some colleiive

p*rhide, lgri'$vice $d adminnblioi rnd findrt For rhes colhdLve vork, diEd

shou deEd by rbe coope.atioi a.d e!

rhc;qu, njssorGeProdudton

applj.alion ollndigcnous Resourcs rnd Renklor Mrhiicr.

n $c tuo iobiliz ion or locrl m siah and
indig ous b.hmlogy k hiehly r@mn.ided T[a. indude uiiltins bamboo and bc.
for tu dbk Deso* or ollcP rd druimg. of inieniion For rhe big fam mrchiDcry, ir
n rccomended ro ran ihe us or such
cmmeKirl lhhftrs shlll b. $bjd io qui3idon and di*ibnim rid r0 ye6 frcm .
.reriviry ot rhk ad (CAR! S.dion I D I.

ln rhb F!r4 rhc Pilipirc Bmnr C6ws .nd Erpd6 A$o.i.rioi (PBGLA). s
lsejdio of d* bd4i ploedm dpodift, -r a dE eiic'l linl bqF puoim.
pc6n'g bd .xpd x und*6 r6k5 od .ddinn6 $. vMN diviris of {d{.hokl.E b
nainhin rl. nrbility ofsupply oft such r olk orrh. PBGEA innufled fi! CAR' dlfemdr for

'ft. r.a ( 1933.1993), *hnh u dt.i(k fo sorhd

CARI h6 a speifid dudioD ol l0
rOtds rr99t.lc{s) undr $. Ptrc adriii@ri in l99s rhush rr r. sFlgt6 rlr
implem4'rim of c:{RP .!d dhs purFsA (R-a ?9051 Hdrs, dE b rl* iM8 cqus bt
d.d aslii ibr anofts J y.du (200t-2014) lnFus! o rcr
ntn-srhening CAR? (LA q?00), L$ich \ds cneld mdd fie Aroyo Admiii!trdrjon ii 2003.
tv-1-2 -t iE AVA itt6du@d
:,
n.nrioned abov.. CAI{L expiBd in 19$ rnd iF I0 yar dcf.ftnt p.ird Id
.oro{.hL f.hs. Adminislnrion oder (Ao) No. 9 ol rhc D.prm4! ot Aend.n R.fo6 vs
lnaq.d h l9et 10 pronulgd. the rul.s dnd rcguhrion, eov.ming $e a.qujlnlon. $ludioi,
..nr.n{idi a0d disbiburin ordr fth ldd to rh. ARBS *ho wE aploy."4 lor th. plakrioi s
:5'i.u1'@l \ orters To sfttrltha Ao Na 9 of 1933. Ao No. 2 of 1999 \6 prcpftd b eblish
d: nh.\dk fo joinr ..dmi flr.rprins, s alnnu E oh n.6 od dnlt rh! dj.tjbdio or
lliN ot r*roE md
suppon ssricedesignd ro lin ft. eco

b 9.n.ft1, i d slEll b. disibur.d diMrry ro individun w*6-6cdn.i!ri.' Hos.ea in

cas n n d donmjolly f*ibL rnd ldd ro diyid. r h,ni dn n shdl b. oMed olldi*ly
bLro*.rbcn.ficiai6*tbshrllromrvdtts.o.p.ntiv.orlsidio*hiciwilldel!itn.
co@drioi (serion 2(e),AoNo 9 0f 19931.

aO No 9 ol 1993. ilnoduftd lhe mn..d ofihe Aeribudn.s Vo@ Aninsdmr (AvA)

Nnh lh. inorid ofd.v.lop@ .oopaliv6 @p.isd ofrhc pLtuid M*cR,
Thr rlt nr rtus orrh. ava @ 6 follo3:
Fid, the AvA riecd ro oprimiz. fic opdarins si4 of i3ricdMl producrion md rL$ ro
prcnot agr.ulruEl $crlq ofEnm ad Ecrly orinom! ro b.ieficiaiB (Sccrior 30(dxr), AO
\o 9 ot 1933J. TnG prcvbion .mphaia dE irc ol p'!d@irit]. Tnir n).s rhd rh.
..lmniq or sL i. .Micd wirhh $e 6zh.rst orlnc CARP a n n .bo did.d ii AO No. 2
or ls, rh6 adins *uriB otlad ro*s'q rnd b.n.lf,D6 llr@
'h.
seondi don.sic, s eell* foFis. iive$os, e dnd.d to rh. !C bsin*s $dor lr i!
dprsJy ud.ulood that rh. AJus dd rh. inv.nos ad trro igrmdr ror in AvAro achiev. rh!

olhbim, D4fts, Mo dd Ndq

 rv- 2 Land rne and cLoA
tv - 2- 1. Iyp6 ot L\e CLAA

iypA of c]-oa. The 6st E the lndNdual cLoA

o
,n {hich theARBScan ideniii} iheir own l3nd tn general, the land r{alded b a llrner
beneEciary should bc ,n lhe form ol,ndnidual litls as plovided in t]Ie c.cnl- rnended

Trc orhc. r_rpe i5 ihe Collediye cLoA in \hich the ARBS.dior idetrdry ih. o*tr le.d L
sR or.ollcdno o\nq5hip. ! rilh ro rhe p.opery shaLLb. i$ucd; rh. n
.oL{ri\. oelnnjrion (s<rior 10. R"{ 9100) The commcrchl lad lhdl b
.oL<n'.h oruidsco-o'nffhLp(s<rion:5,CARL,sKlioD 17,AoNo eor1e33) rlo{*q is
Jrii.l,harhrDaRJhouldinhldlddru.dd.led.p*..Lizrionor$eeidcenifi.aresofland
l\]]:i!hleIr}i \ld0i l0.I.A 9?00)
1r.al0rr. rh( f4 litu rhs correcrilo cLoA ndioiwide N 700%olrheloralrc!oa
ion is dlfrs.d ii the cse
rjor b'nss p.odrcins Estr, 6 rhe
ds rndividmr cl-o^ L{s ?r 0t' (r!bL E rbe dft in ibe
dd by rhc Cdll.div. cLoA *A I 5 tim$ lal3 lhan thc ad!
-rjr:h. rid\jduaLCLOA Fdn.ftorc, $c@perrith undd rh. coLhdive CLOA *4 r016
rimcsrh4or$ebnd lr
nn rr: nfened Fom rhe dara rhaihe coll*rjve cLoA is a commo! ,nMsemed !' pladations

ol L.nd ownsEhiP A*ad (cloAl

(Numbea (%) (has ) (%)

(soue) Daia prepa'ed by oepa'he

v fte coopealives and Achreve

Throurb a ce nudt, $is prpd d6crib6 how rhe &tu1 AvA *a ippliEd ro boana
plsutlon coop.nrlves and whd kind ol$hd6 w.E d.vdoped snd inplmenbd Io overcon rh.
chilhig6 and bondagG $a. .oop.6!ives &ed. This sdtion sh3ll clIit 6e tusdous.ron
*erted by rhe nember AxEs in order ro dain $lr'rcliee as irdependmr sow fm6 orrh.t
E-

cmpe ,ii4 c

l3rllv
reeercDA Rascr,;cd
E-

(PhP 263,4524R8) (PhP i2455rha)

 I

rndividual Famins svsiem (lFs)

 busna L $2.9s/box or l3.5lg, Ho$.w die eops lv. lnd the m.hbs' !L$ rgr(d b
o.dud & ffid pncr Eviq

sd@r &trddtuc4l&
Resdldm d6. 6nd enbt or h

1 the Ettuian Je b, ruies k .tadafte v h iE .rFt al 3an 7n

the caopztdiw
ltMioD f.. by rh. .er.driv. & d.dud.d 6'm rh. p"e of hDDr ro ply ld
.*ninistion .6 rnd d. .rpas rn ih. mlldiE diriis of.ll rfic ftmb.a. T1.
tbn lh. tunb.ts {@ is didly a!'r.J ro rh.

Th. membs'$d. it incded a $. qulity olsoil ir lova.d. Lr th. .s. olclss A. 13.5
ItsR.!ul$b@rt ndb.6 d4 fd sil'yF I (co.d *trh oHcq n $.100'bu ( 1r.5
kgr rd inrcs b *!) for eil t}? Il ^r
(God rtu ]ihour OHcp). 6dh.r
(l3,5kg) a6 eil rypr o (P6 A4) (T.bl. 12) rh. t j.i.s imMrid k
scrcrnr ro s:Joo/ box'2.lo0jhd(l].5
in r(ord.n.e u irh L\e l dhg or&. col'ohb ,6tidn r.q s th. qullfiy orsild..Eas in o'dd
ro.qlslize ths vslu. ol rhc produdion by rhc nemhqs. nii iidiores.hd th. sochl nm of rh.
coopdrivc h b .quliz. rh. iMfre 6on rhc hosd produdion.

3. ObliEdw of nE cooptuiE. nE A3,a4dr r&. spdi6.d th. tucioB b b.

bd.turd b! rh. .mpdiiE. rl* @olddir st{l d.dd nm th. bDD rtrddion
pbft .nl of ! n.mbd &e.oft spsdilc mour tr+dld in odd for d .oop.Eriv. rd
pdrom rhe tollovins frrdions

a Td hrndl. ih. pa.king, sigaoh dMl. rnd qEliv rlslffi! op.EriG, md

ad"iri*nion ralln
b.bpayftr d andidimr, l,s ads@md f6.
c. ro prcvid. E.hniel sni.d

.cLoA'edfusd'\d&fuldddb}:
p.ditcoll6&odo.F)l!ddtiddhltr!Eof
dft.!ldh.dF'rdcldb'rlltrDcDbGB
 buy$s (or prohlbic! poh laurling).

affinptishnent al the caop ativ. H

onsisEd or r]Iee, ideLy Main opsation, Asuncion

The biged ponion olihe Man opemtion is banana produdion

ch$ A bmina ws 3s6,631bors (76.1%)0rtobl produdion). ch$ B \rs I22.3rl borA (rl 0%).
and ch$ c \ras l4l.5jl bo\.s (rr 6'l") roklprodudldn wA 1.r21.136 bor* (r00 0%), \rhi.h {A
3i.67r bo\s o\{ fiiD th.inniiird

a.600 boxs/}3 dung n\e tme of cenhLild Manasemer

5rn.n.:Dd r.600 bdiclAl bd$ $
s iol daimd du. b rhe eobaro of Iranian imponjl

3ls orbrDrsrcrched PhP 129.750.9rr Addins Pbl

nscdlmeous,ed afte. dedudins PhP c6.79r,253 ordtd.osr.

deduding PhP 15,795.66) vdnh d r adminntdd oi .o! A(oldiig ro $e hnincialmaDag of.he

sisrore, rhe coopecriv. alallod ora Fddtrdion lo,n

rerce ion tu Land Banlor$ePh,lippi.es (LBP) anotrtlngro PhP4,7l0

: Asuncon 3@(hop{d nn

niciD,Lnr Ash.ioi sas ddelop.d a a exprNion

conposda Bmch opddion eith the intnlion ol DrovidiDe
e
coopd NeH inve{meni fo' the rexr phse orihe mrivity An ar6 of2T hecla6 va itdrrt
1lx co.hdsoBi.sofbanan d ihe municipality ol Asuncjon ii $e pbvin

conpostla Bnnch Ln Muicipaliq B as by conhxi Eovins

rirh emrlo)med ol rhe hted hbor RflG Ir 2010, nhe nd surplus
:odhrcd b PhP ij?.13i, $bich n highr comp .i ro thd or.h. Maitr op
 v-2. The coopehtivo c by conractGrowins with the collective cLoA
v-2-1 fhe caapeative c intbduc.d'FaB schemelat its Advantase

coop c is lo.ard in Bmngsy Tibmgcol, P Fbo cio! b the prcvin.e of Drv.o dd

,ve
Nonc x w6 *bblished and Eskaed {irh rhe cD in r 996 ans I ?o asiculrurrl \'ork6 \EE
gruitd r1i. @lb(n CLOA drousn vos shene ftryv e mrldydd rdr a phnhlion opeFtd by
ih. clr.kercd Fm. ln. (cFD vhich !6 the subsidi,4 or rtu llous or Invdb.d, Iic

. .he CooD.dlivc C .ntrcJ ido a ti J'dr tro\iis

l'tr(DFr). $rri.b is undd rbc Do
(Doh.srrfil.o) Ho{ds. co0pftllire C hid a hugc mo$r oi debr d
e.mptive,Axhotrgh

hjch.r rhs rhe odnd pme The coop ative $rfred h d

r s bishs comad pice. n$.thecoopsdive d(ided.o ro
re iicreAe They denunded for a shin & a Fighr on Botd
rFoB) coorad NheE rhq have 6ee ELsn ovs rhe rredudion ptu.cs

$e commodiB Unds an FoB $heme,

D.].sbnfico.src]e|ilL]]ercduedloLeingrm*ebuyg.m4njq1|ddr
bdc]]'bySt06lcodi
oh PhP ?a63 rus$0.60)to Phrl0660 (1rssl.60) ps box!
-FoB pefrains to ilE tee otr boad 1o rh. Fc or Packine Phni the rransdienr ro rcdue
hDrpdndldd o{ b rhc ehrrorrhcba.ans yssland fte ddd@.datjdi.bll:c rdr shipds "

Mrnae.nenrsy$enlcMS)ro rndividurFminssysrch(rs)bindeseftenpsdDcriviry
lns 3: of then emb s $idldie\
beF and a tobl aE. ot rrr h,

{uni6ainD folroqingrhe Ems and c

.o!! uidd thc FOB ex-Fcljq phni, e shouldsed bythe cooptrdive. vhiG rLl tin:podarion
3.d shipprtr! .o{s 3i. ro bc sh,cd br rhe uninuid

lir,oo0rha Houevn. rhe initialp,Fenr for 14y*s

our ori0 r 4n nA.ondeisd ro e )cfs besa. $.y hd 6N$ wdkirs ddaLb sp&
:p3nicurar.h* crirli.drcoopehivec is rhar rbep etmap indic ingindrrdtr.Lloh

!d otdiirrooqes.\ie'id.rdrlod(aoo !r9 i!
ina.dins productivity. h ordu to tuirion into rh. IFS, coopmiiv.
dddibiis dr bsic polic/r T1. eDid.lin* shi. Ihd coopmtiv. c nun rdhft b good asiculturl
pmdics sd nmda'd opeErins pm..dE b eBr d dsl prcdtrdim
itcrs & nmrimed in rhe suidelin6 i' ordtr ro lchi.E Ih. rdsd d fonovs:

L t"dDdut FtnigAtun'In.phbrionisb.ingdivided.4ualltamo4rhcndb*

h. try|'at alnt wtuaus r

opcAioi plo.duEs &. folloqed.
.. )srwe 6Jtk traha .Jte ditb
y dc (oFdec b ddq b s\o'nda $. coopdtive
dd tdnlnirdn? exp.nsa

in B ans.y Mdgalct, Muicipality drcm.q

V-2-3 Acaanplishnent .f the Caapa6tiv. C

15 avds. yi.ld sa5,134 boK4u od of*nich

b.xes. The
chs A sd 4.739 boxes,ha \rhile clas B \6 395 box.s4r. 1}. volue *s inru.n conpd.n
10 3.939 bola ra dsing ln. rir. dr c.nr'lD.d Mssg.m.d synem undi rh. cdophrivc gbw,
md ro 3,500 box.s4ra uds rhe corp.nre ciordr:.

cros stes in l0l0 M Phr 91,032,043 includinE rh. 64 dr mrdials Th. mout
includs PhP 77,32?,253 of rh. Clss A boa6 ed Phr 1.5341,1?2 or Ihc chs B bbsE. cos
dnc $. cod ol $1.s *onn Fhr 73,231,753, Co$ ol sal6 *a
r $a equiEleot to 19.5 % of ee* 3416, Toral rcv.nues rs
2010 mountd b FhI 24,536,106, lhich {B added io PhP 6,934.773 ror,l ororhd incom. EquiEd
, roel .xp.nss for th. colledive vo*s {as FhI 22,359330
uh.rcin did labd md rinc. b.refii nom packins, h estins, maidEnde aid edginqins
solkinss amouocd ro PhP 3,777,617. fte *olkqs' &ily {.ec sa Pht 255 (lrbdr PhP 240 sd
COIA PhP l5), while $.n donrhly wag* uorkn b PhP 6,630 (PhP 255ld!y i26dayr. ins dnad
labor h .quivrl4i ro 7.6 % or gro$ 3d16. Fin.lly, nei suJdus w4 Ph? 1,32

2. Co6nn.i ot r ion

Tne collsmq o@ation, or srisdidoE o@dion, is Opical fd coopdrivd. This is *d

tu6ln GoeFrivs hMheq hc (rARMcooP).

(PhPr,4l.614 r 70% +rrrh!) rhus. annuaLDd;cdoo o

,!?,{5rrARB (PhPrr,r6rihrx r :93In/AR!)

eaclr membr |3y: PhP rr,48si* (PhP 14,0.'0,ARB x

v2 5 Financrat Asisbnce ta fhe Caapetative C

uiindnd hade r\t 6n4cn sss?ies ro $e coop 4ive c

rltlneqriklto"xolsk rhe lrou s^rs r an advD@
The *cond roar ra d$ r'hPa.l00.
Ihis 9a u$d td rctubililalc rlt

V.3. The Cooperalive D byConiracrGbwinswirh the lndividudl cLoA

v '3- 1 Ptotuq,"d Neqatiatian fu the Canttact Grcwhq

coop{4jve D is roc4ed lo Ba.ansar DrFo. P.nabo Ciry. jn rhc prcviD* or Dr!!o dd

d iD I Ss8, bd k conpokd or I I nem
ly smilli,, Emxofmembss and
ded rhe lndMduil cl-o in 19e9 uDdq rhc coroulsory
Iqlnd (cA)s.h.n.orrh.CARP{hcD(
And dr i!su,i.c orrlr collcdjvc cr-oA. cdopddirc D enrd a -arcwing conuer vilh
sioi (Dorc-shnnL.o in r00i. rro*e
rr6d 6 llnd di:tribulon ar,eadr pased due io rhe proLorged coNad Degoriahon

h 1965.lh1hr'D famiry\ D?vro Abrc! PLrnkrion coFoEdon (DAPco) resed oul

o whnh naned banor prcducrioi ld

lsrARBtrrt sid dxifr.d rcas and conbot ol rhe DlPco shle. The hnd \?s pul undq
conprlsoa Ac,luisilioi (c4) rhe fi^r clo^ r?s issued in teej. uhiLe $e $cond cr-o^ q4

U) wirh DoLeshnflco,l1lc MOU Ns.2trcar svoship

pdiod drrour yrm (r99tr993) dtrriis sh jch Dol1560fi Ld.
.. ro bc tr 95/bor0irhc
,rd rltr fps'm rt
Dunng rLre trinsirioD p iod. D0r.,s

sprn ALDA (r45 Axrn, coop ah$ xl (rrr Ansn md

 L sellir8 pdce of clas A boMA
a.t2.30 *-pario 6'cvdrhox/l3.0kgolexpodquli9"DoleHmds"
b. s r .3 5
.,*-pdio., for 4.ry box / t 3.0 tg of 4pon qu.lity .,Dorib, md .,odinary

.. Th. s.llins prie! are tull cNting, t\d is, sll pmdudion cNb md d.livtry ol ndb io
ih. pskinE planr (. 4clsively uod.d ro coop diw D.

2 Sellins pri.e of clas B b5M6

Sellinc ptc* rd Cls B bmao arc "ex-*ha-f Drins prcesing, buys will includ.
singl. ild los. rhcds in clN B b4.d on acMl box6 plodued

cos ofth. packinc plar opddld.

Th. crpascs 60fr lab3r, matsials, eledicit and plossing shal1 be shouldftd by buytr

tuyh.nl for$euseof pmkingpl i.

Cdop.driv. D .hall constud ns oM pmking pl t lor rie prcesing d pmkins ol he

Buytr shlu pay $0,06/box (1r.0 ks) lor prcdu* it p$$ss ai Coop.di!. D\ prcking

v-3-4. AcMplkhn I ar coop4tdtird D

lie cooperdiv. did not dk. uy rlmc

incniew vnh $c Chdfto of Coop{ ive D, 6.m avenge produdion *s 4J00 hox$/ha
aNen a buyins prie or t2.90/b.x (rh. piic. b hishd $d th. prj@ in $c 6ntu0, rh. volumc of
sales rokled Phr 12,rr2,3r0 (4J00 box.stu x23h, it2.90 r PhP43.006).

h Cooperdive Dk c ., o$ or produdim ws 60 %. cios imre mourd ro Fhr

4,91r.132 (Ph? 12,332,330 x40tt. ]lle produdion on induded expeN6 of i\e pacrdis plmt Pbr
340,216 ($0.03,/box x 4300 bds x PhP 43.0/0)!6. No oi\q d.dudion 6om produdion ctr vs
mad. nsdiiig ii . sd$ in6ne otPhP

codpe6li@ D hd lsding opnrios. Muihm lom moDi tr individu'r mmba is

PhPJ.000 ! nh m inkE$ nie ofr % pd mm, vhich j5 srd.d 6 .oivdidt.

V-3.5. Net lncne ol Ih. tndiliCual Menbq cn the Caopeftltue D

The nd surplN or Coopqative D moubd ro FhP 4,933,132 or Phr 214,434/he Nd

in.one ofth. menb ArB *ill GuLr aftd deducting rdditrisbatim cosb ad lmd moniztion
payh6!. Adminisbdion co$s vs Pbr12203r1a (PhP 1200/f,onrh xl2 hotrrh+1.I3 hd) yhich
include p4omel e&eas lor 5 p.BdB (No ofice cldk{ or. rdvbors b rhe field dd so in
ssu.d ldd moniadon Dryn.it by rh. 6ot.6riv.r7

v-+2 Affinplishrent ol th. caopnLae L

'Ihe dilities of coopddive L cotrist ol $ree op*diois pbj.cb opdidis,
coamd opadiods 'mdy,
and ftdn opcntiotu. The a*mplkhn.nt orrhr.. op

P6js opefttion is compo$d of land ledinc opddiois dd $nicins opdaiions. Lmd

ounr rtr fni

five yeus k d
d Phr 1!,000/ra, 6om *hich PhP
b lne LADC is dedud.d. As a result, nd incone tofr the
opddioi Ns PM 5.000/ha For yeus ianins l0 10, yedly rabl mounr ind.aed to
i\e n*t r,ve
Ph? r0,0{0/h A ns d.dud;g Phr I 3,000/na moniz:tion, nd income incEd.d ro PhP I 7.000nr.
Hov .rd, sin.e rhe oniaton was paid diHdy to t\e LADC tnd is rcg,rd
Ph? 13.000 s* not rccord.d as incomein thc Financial Sben.nt vhich Erlden Phl 30,000rba nd
prcfir consqu{dy, mhl uount fd 2010 va Phf 2,730,000 (Pbr 10,000 x 9lh4 bur rhe ?tuI
amoud F.orded in $e Finoclal Sbhdt $s Ph! 3,621,334. A(ordDg ro Ih. nmase4 l\e Fhr

Th.I-ADC snd Lapmd'y loods colponrim (LFc) utilizd dbid.labdr sdi.a ro hsdle
pmhng pl r opmtion and ddagedent Acadins Coopdrivc L , $
Contrt (olc) bawed c..pd3tiv. L, LADC dd LFc, dssibed 24 irens ol dubid. labor $Nic6,
mrions, 6 fim for Pld c& opdaiio$, 3 ih. fd Crcp
Pdsiion op arioN, 3 itms lor F.H sanlbrion opdtioa, 2 ihs rd Hd
d d6cnb.d i vtd. r,nc. oropeGiions in rhe pbnbtion n.hs.
istnd ro rhe D.pd r oflabor .nd Emplo)n.ni (DOLE).

Uni pice or outid. l,bor H P3 3 9.0/dry ft.

pdce ss apprcved hy DoLE 6 the mininud
Mg. me. ft*forq $. PhP 34.0 difiercoce h.e*n 6e cont ded prhc or Ph? 339.0 md a.tu,]
payncd of PhP 255.0 rd lne pdi.ipabd membd AR& is coisiddrd 3s
labor op.mtion ror 2010 $6 PM 7,037,676 nakins i(
$ruie
biggen incone op dion for Coopffitive l- oth
oubide labor opeEtiois, dniias. inconc
For *s
PhP 932,63 5, sh ich q6 induded in nhe OLC And lhe dninase {6
finthed

Totl rcv.nu. or plojd op*arid mouncd rd PhP1r.?01,269 dd adding inrd md

ssn6.e noh orhd oqaniations or istitutions

The 8vsrg. ydly bd@ produdion in rh. planblion is r,300 6oxesma. lr me p c. dr a

cla$ A bmm is sl.rs/hox, n\tr $. poGnrirl in@ne of Gopdrive L ir FM 40,223,6s0 (1100
bor.s/ha r 90ha x $3.15/box x Pbr 43.0/$r.0). TL coopediE L roe rhe opptuity 10 achieve
$ltrclise si$ 3ll its h.nbs! beiry alBnm ffofr b.nefi&ries

V-5. suhmaryof iheSuryoyof $o FourCoop.r.tivBB

ftis sdion ,unharias the swey of rrE ror oopmiivs (rabre e). An for oopdariles
!rd..*ded lhd ritls by cA or vos udtr cAIu, md wft issu.d rh. Individur cl-oa or rh.
cdll.ctiv. CLOA Mdbssoftheco ficidics (ARrt In llEi
sasi bsic me,geie.t of rhe coopddiv$ is dep.rdent on the kind ol AsribBinds V.d@
Agreenenr (AVA) node $ledd IhEe ol the coopsdivs nmely, coopsaiivc H, cooptrarivc C,
mi sowins flangemenr. only coop.nrile L usen $. La.

Ii vsnl sinple ror coopdarivc H. Cdopmtivc c and Codpdliv. D ro d.cid. on usiry nre
donhd gFwins amnsemenr Their d i.nr n.8orinioi wnh .he
plmhtioi .orporurion during $e pdst movemenr agaid eaee cut aod n\e dimisal or plurtion

I much difldce beN*n coop ive H, c atrd D\ bams

produdlms ar 4,02? boxeslm (d{rca.d ndn lh. iniriar roie.ar ol4,39t bors/h.), 5,t 34 boxes4ra
nd {,100 bor*/$! E9srively, *h 1l *a r.343 boxs/hq

c. ir k ohvioN i\e incEd. orlne prcduclidn hd* rh. rndividu.l Fding synem (Tabte lr)

r
rc by coope'ahe {20ro,

3 a^acrreuad E&0tu6 B3oc adon IPBGEA)

bkaR d.y did nor reive y kind or lom from ban*e oi olhd oe
coopeFtive L lo$ rhe oppotuiq ro sesde pdsrbl gsin fron proluction or bdda dmugh

chaimd of coopmtive L explsins ihai dsituce tu n&ded itr oidd io upctde compub hciliiis.
This need is qune ud sbndible ,in.c codpfts md o$H olne applia.es e*cili'l in
compurins fo' irre dnbiburive mohr 6r individul or n*d d ii .
'e

ve cLoA in contlcr crdving, Lhe n* issue will b.

ho* ro Bpotrd to th.
$o*ds b
stong dmmd rcaliz subdilkloi dr lmd by de jue not de tado. In
rhar .s., rhe prcvisio. of a sp.cial resulaion is n*ded 1o prctd rhe coop nive nom the lmd
.oile6iotr fo. ot\s p['o$s. chatrge ofmps d aty othd iftculs{divities in n\e fm

ln drc lois tu, .oitad gro{ing *ill lead ro $e erpaosiod orrhe opsdions md building up
o sellreli&t growds coopmr ive H open.d m additional lso btu.hes Asucion *ith 27 ha and
I
Coopoqd, qirh 2i h3 ro *md nain op ions s w.ll s coopsative c expanded 134 ha or
.oopeei* Lad ft$e er"ansions sc achiev.d dily by the kming 6oh I
iliziis kno*hos bken nom co'brcl Fwi'g ror bMsa pmdudio' lf f.ct, rhe mchul,riotr sd
dnsn,ndion of infomdion d Eodd puiccq bsed on coopddive L\ suc
ribL rcle in prcduciis slr-rcliut growea in bsu prcducrion

As mmriorcd in th. begtrins, ihis pop illu$,ted drmd dp4t ro rhe comon ie{ tbal
snsll srcleB povety is qacibd.d by mulli-nnidhal coaorutionJ exPloibtio!. t}. hiAh pn.c or

how groNds m on rh. eay b becominE self-reliant bs a tmm

vi&il rh. tme\ork of Av 'E
conEer Eowins scheme lomulated rhrous! ihe DAR Administative ords li lso shoved how th.
a

policy 10 gen*d. s.lr-rctier srouds irp'ov.d vjthn\e pdicip ioD offi. cdopdarivcs.

Ilic .codoni.s or$ale .d b. se.n in commial mps rch 6

$e 3ugs pmdudion This is
why prcdudiviq d.deass s a 6ult of 0re division ofihe plandion br_ Ldd rcronn. But in i\. .e
or conftd srcvins in booa produdion, 1Ie produdiviiy dili.rcnc. brousht about by rhe liz or
land \as sdall. Hosevs, plmhrioi @rporatidns ,lwys posFone the land Efom. Bcctu$ or rh.
high peish$iljry or b3ma. s hi.Echic,l oissbiionk enfrL hant
iom $e innial a,ge
le or p,Tdudion
shipping. T]ris is to msurc thd th. bdaa\ qualit ofrh. rierhna3 m.ds rtreisn nskdt sbdads
A sell I to rvoid rhe overrcduclion h i\e frm. Thn ou$ pldbrion .
ro defs sudividina rh. ddhdon by lod refm.

The sirurtion dBtiqlly clssed because ldd disblburion b..me posible i\roush
Colledive CLOA bsum@ uid6 CARI This is issu.d to rh. .oopmtive oi association, conpo$d of
th. Ail:
ir is noL eononislly or physicallr r.aible to divide dE land ituo small 106. Tn. ont&r
gtowiig {hm. *s simDlrs.osly intodued 6 die or$e schem. in the AvA s guidelinB.

lho.$ tne ,FeEie. of!!Dn.n rc10 m. AtA lnd 60bri' g *ns

Alano, Mdia Lhr r ,nd HiDoho, Romel Ab.(1999), rh. Situatidi or Smrll Bdda cro**, ol
srbr o ih Dr$o sd compmbta v,l

Ang'sW.(2000a),..BM3splil:Th.SbfihoBsaEzpilion[Ta*
Vol.lI,No 9-10.,Albm ive FoM lor Rsach in Mindmao (AIRI!O.

Ans, suams (2000b), As m Rerom Laphmcnbrion in n\e Bmmz b6rfry", En$a4N,

vol.14,No 2-r, Albmdive Fom rorRsearchinMind ao(ArRn!o.

B,r,ngq Gr.ni.(2005), '6oins Bsana: T1. Philippin. B3tr,Indsty ,IsoN Ftk a Fist*.

Bord Ji.SMino M.,(1999), ths ribkEk' Strukg h Lthd Rqfun tnp

Pd t Mavh ! dhd sd. ?nlanis' , rr' IrilDrr4 In$ituc ror Popule D.motrey.

Bons. ri, sztudno M (1002), "Pmbl.n hd Prospeb orRedistiburive Lmd Relom in MindMo,
t972ltt9sv2aat.' tiinanaa Fta, No.I, sflies 012002, Alreturive FoM ror R6..J.h in

Bond rr.sMind M. (1004). xdrdrlg Red&ibdde Land R{tn: sr'scta tu Land Relarn ud
Paw k the Phi|eeiB,@ke n ibr PbD, bnitui. or s@hl stdies, rh. Hasue, fte

Bord rr, saMiro courrtkc tlaa orn snesils an

(2003), ayoi R{am, vatffie t:
Ihta hat@hdt Pe,pecttu, Aten a deltaila Univ{eit Prss

Bons rr, saM'jm (200E, cd,rd

Philprke Pespettus, A@o d.Md:ls Univc iry Prcs

6 LandMs:Tne Expsimcc of
Cabildr, Min.nd C. Cabungcal- (1997),'op.Ering a Rubbs Fam
rh. SARIIIITCARP B.ne6cidi* Mulripuryo* Coopd iv. in lnrpld66lioni'' M'ii,a
Asttim x.fth wtk -,lchie'irc stuitu,l. Ptuda.tLirr, Tripoad s6i6 N0.3,

cardmn, R.P. md Rora A.c.(2003), ,snsia Bdef^ ad c6b dcmiat BM Pndudicn

r rh, Phli,,rra. wdkinc Paps No,03,03, InsiituG of sftl.cic Pr@ins 4d Poli.y studis,
coll.se ofFublicAffan. Uoivds,ry o

.tua s*z \2003), PhitiopiE smt FM: Ph.tjite hd Poti:t lnpttd

Raia Vol.z. No.l., Cmtu saka, lnc.

David, Rindor S.,tuven, T.mdio c.

s.lte&t), ttMndknat cueotu@ dthe Phitipptu Bm hpa trn 4.tte rhnd
wodd studies c ter, college orA* tud Scicrcx, Univsity orth Phi[ppiJ's