Go Negosyo, a nonprofit organization advocating for micro, small, and medium enterprises (MSMEs), has joined forces with the Cooperative Development Authority (CDA) to support small farmers in the Philippines. This partnership aims to connect agriculture cooperatives with leading agri companies, providing them with opportunities to scale up their businesses.
In a memorandum of understanding (MoU) signed on January 4, Go Negosyo and CDA agreed to identify and organize cooperatives that will receive assistance from private business organizations. These cooperatives will be guided in consolidating their produce, meeting market requirements, accessing credit and inputs, and receiving training.
The collaboration between Go Negosyo and CDA is part of the Kapatid Angat Lahat Agri Program (Kalap), an initiative founded by Jose Ma. “Joey” Concepcion III, the founder of Go Negosyo. Kalap aims to establish partnerships between the government and the private sector to integrate small farmers into the value chain of larger agri companies. Through mentoring, market access, and capital infusion, small farmers can enhance their productivity and profitability.
Since its formalization in 2023 through various MoUs with government agencies, Kalap has expanded to include 50 big-brother companies. The principles advocated by Kalap have also become the basis for several MoUs with the Association of Southeast Asian Nations (ASEAN) Business Advisory Council. These inclusive business models provide valuable insights that cooperatives can adapt to their own operations.
The partnership with CDA will assist Go Negosyo in identifying cooperatives that are willing to participate in Kalap. By collaborating with CDA, Go Negosyo aims to address poverty alleviation, particularly among those in the agriculture sector. According to Concepcion, unless the challenges faced by small farmers are addressed, the problem of poverty in the Philippines will persist.
The signing of the MoU between CDA and Go Negosyo is timely, as President Ferdinand Marcos Jr. has called for the consolidation of local farmers’ cooperatives associations. Undersecretary Joseph Encabo, the chairman of CDA, highlights the importance of this partnership in the implementation of merger consolidation for agriculture cooperatives. By expanding their resources, increasing their membership, and growing their assets, cooperatives can directly benefit from the program.
The government recognizes the significance of revitalizing the agriculture sector to generate more jobs and stimulate economic activity, particularly in the provinces. With approximately 43 percent of the country’s land area dedicated to agriculture, this sector accounts for around 24 percent of local employment. Boosting agricultural productivity, alongside the manufacturing sector, is a key priority for the Marcos administration as it aims to elevate the country from a lower-middle-income economy to middle-income status.
The collaborative efforts of Go Negosyo and CDA, through the Kalap program, demonstrate a commitment to empowering small farmers in the Philippines. By bridging the gap between agriculture cooperatives and leading agri companies, this partnership provides small farmers with the necessary support to scale up their businesses, access markets, and improve their livelihoods. Through these initiatives, the government and the private sector are working together to drive socioeconomic progress and create a more inclusive and prosperous future for all.
Source: The Manila Times
