Contract farming for corporate employees


AVANT GARDENER

Farming is not a get rich quick scheme

Most of us know that the reason food staples are expensive is because it passes through many hands before it can get from the farmer to the consumer. If we could shorten that chain, it would make basic household ingredients cheaper.


That’s what Raffy Tesoro, Philippine textile expert and Chief Creative Officer of Biogenetics Agriventures Incorporated (BAI) and his team are hoping to do. BAI is an “agricultural and community think tank consultancy that focused on creating agricultural tech solutions that also does integration, execution, innovation, and connectivity within and without corporations.”


It partnered with the Philippine Transmarine Corporation (PTC),  the largest manpower Management Agency in the Philippines, to “provide food security for their employees.”
The company contract farms rice for PTC employees’ monthly rice allowance. “We provide Jasmine grape rice and ₱62 a kilo delivered right to their offices,” Tesoro said. At the time of this writing, it’s about ₱75-82 per kilo. 


They also offer a service they call Market Day, where they bring fresh produce to PTC offices twice a month for employees to buy at competitive prices. “Like, currently, broccoli is ₱700 [a kilo]... We sell it for like ₱255,” Tesoro said. “What does this do? It provides a means for the employees to have a much more well-rounded nutritional profile that’s easily accessible. A lot of PTC employees plan their food purchasing around Market Day because not only is it cheaper than the supermarket, it’s also fresher, because we get [the produce] maybe 24 or 48 hours before.”


It’s a win-win for everyone because PTC employees get access to fresh produce at rates cheaper than the market or grocery stores and the farmers BAI works with are guaranteed that their harvests will be purchased at fair prices. Because the farming is contracted, there’s less chance of wastage because the produce is accounted for even before it’s planted. “What we're trying to do is not waste money, not waste effort, and [move towards sustainability,” Tesoro said. “And I'm not even being an eco warrior with sustainability. Sustainability means prolonged profitability. That keeps your business going. That’s what we’re after… Not just our business, but everybody’s [businesses], and it starts with food.” 
The program, which just completed its final stage, has been a success. The company benefits because employee health [increases. They have less] sick days [and] better nutrition. Employee job satisfaction goes way up because they feel like their place of work… cares about their welfare,” Tesoro said.


The company is also planning to offer fresh prepacked food like salad cups to employees at a much cheaper price than commercial chopped salad offered in restaurants. 
BAI is looking to work with other companies who are looking for a similar setup. “There are several investment models. Either the company pays for the entire stock… And the other is, we have an open system where other people can invest in contract farming, and then we can give them first crack at milled rice so it comes out cheaper,” Tesoro explained, adding that they can work with companies with as little as 20 employees. Interested parties may inquire with him via LinkedIn.


Tesoro wants to feed the nation, a goal he admits comes from an ulterior motive: “I have a vision where we can become, potentially, the next cultural soft power out of Asia,” he said. “Everybody’s like… we should invest in our artists, [and I’m] like, you can’t invest in artists unless you invest in farmers, miners, plumbers, fishermen. You need to have the basic industries organized efficiently and profitably before you can even begin to do cultural or tech industries.


“So this is why we’re doing this. I want to make fabrics. I want to do fashion, but there’s no way to do it without [investing in agriculture and food security] first. And also, I can’t get the raw materials I need, like cotton that comes from agriculture, or piña or abaca. Even even animal fiber is still agriculture… So that's why we have to fix all that first.”


Contract farming can be an efficient way to shorten the chain between farmer and consumer, and if done properly, can result in higher yield for the farmer and less expenses for the buyer. Company-subsidized contract farming, such as the partnership between PTC and BAI, can be an efficient way to bolster employee health and morale, which is a high indicator of company growth. As Tesoro pointed out, a well-fed citizenry is the backbone of a thriving nation, one that is ready to make a positive mark on the world.