Multi-sectoral study on the Agribusiness Venture Arrangement policy and implementation under the Comprehensive Agrarian Reform Program
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This study makes an assessment of the agribusiness venture arrangements (AVAs) between agribusiness firms and the agrarian reform beneficiaries, focusing on banana, cacao, oil palm and pineapple plantations in Mindanao. With both temporal and financial constraints, the study focused only on leasehold and contract growing arrangements which are the predominant modes of AVAs. As an approach, the study conducted a review of literature, interviewed key informants and conducted six focus group discus sions in Cagayan de Oro and Davao, where representatives of farmers groups, business investors and government/private stakeholders met separately to assess the state of their agribusiness arrangements. After analysing the outcomes of these FGDs, the study conducted a national workshop to report and to validate recommendations for the agribusiness sector. The study has revealed that while AVAs have been in existence in the Philippines for 26 years, there are still very few examples of successfu l agribusiness arrangements between ARBs and investor-companies. The study found out that most ARBs are not aware of their obligations and entitlements under their contracts, for most of these provisions are written in a language that they do not understand. Their lack of understanding is exacerbated by insufficient legal representation and transparency issues from their own cooperative leaders. The capacity of farmers’ organizations to run and operate their farms, make collective decisions, und erstand financial statements and enter into intelligent negotiations with regard to the terms and conditions of their agreements was also identified as a major shortcoming.