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Harnessing economies of scale in agriculture (Part 5)

Published Mar 10, 2026 12:01 am
Another compelling model is that of the Jollibee Group Foundation (JGF), presented by Ms. Ma. Laize Ar Cruzat, Director for Partnership and Innovation. The objective of this approach is to address food access and achieve the United Nations Sustainable Development Goal of Zero Hunger through systemic collaboration. Through the Farmer Entrepreneurship Program (FEP), smallholder farmers are empowered to become agro-entrepreneurs capable of collective marketing and supplying institutional markets like the Jollibee Group. The Foundation utilizes an eight-step, three-phase clustering approach where the first phase consists of organizing and information gathering, followed by agro-enterprise planning in the second phase, and culminating in implementation and improvement through feedback in the third.
Partnering with academic institutions such as Xavier University in Cagayan de Oro City, JGF provides a comprehensive training program including management fundamentals, skills training, and trainer certification. Before joining the FEP, these smallholders lacked institutional market access and relied on individualistic, traditional methods. Post-FEP, they operate within partnership networks with forecasted demands and Good Agricultural Practice (GAP) certifications. Since 2009, 30 farmer groups across 15 provinces have supplied over 12,000 metric tons of vegetables directly to the Jollibee Group, totaling approximately ₱700 million in sales. To address the rapid aging of Filipino farmers, the Foundation also established the Agro-Enterprise Resource Center to provide scholarships and foster interest in agriculture among the youth.
Hon. Eduardo Guillen, current Administrator of the National Irrigation Administration (NIA) and former Mayor of Piddig, Ilocos Norte, emphasized that harnessing economies of scale is impossible without the trust of the people. Drawing from his experience organizing rice farmers into high-performing cooperatives, he argued that good governance must begin with respect for traditional “social institutions.” He reminded the audience that “Agriculture” is, at its root, a culture, and any reform that ignores history will feel like domination. He highlighted the Zanjeras model, which are traditional, farmer-managed irrigation cooperatives in Ilocos Norte dating back to the Spanish colonial period.
A zanjera is an organization of farmers who collectively build and maintain irrigation canals. Participation is obligatory, with water rights, voting rights, and maintenance responsibilities linked directly to land shares. These groups elect their own leaders and follow customary rules for allocation and conflict resolution, operating successfully for centuries without heavy government intervention. Because of this cultural bedrock, Ilocanos have often been regarded as exceptions to the generalized reputation of Filipinos as being unorganized or individualistic. Today, the NIA is transforming Irrigators’ Associations into cooperatives to provide farmers with legal personality and economic strength. Guillen anchors these projects on the “Three Rights”: the Right Project that farmers actually need, the Right Price that is transparent and defensible, and the Right Quality.
A third notable model is Lionheart Farms, an integrated 3,000-hectare coconut farm in Rizal, Palawan. The venture, established by Danish citizen Christian Moeller, utilized three distinct approaches to achieve scale: the cooperative approach, the nucleus estate model perfected by Malaysians for palm oil, and the conversion of denuded forests into commercial plantations. Ms. Ma. Lourdes Bambalan, Manila Branch Manager, explained that Lionheart emphasizes consolidation “with” rather than “of” farmers. By achieving economies of scale, the farm combines advanced technology—like AI and Data Analytics—with labor-intensive harvesting of coconut sap, employing workers from local Indigenous People (IP) communities.
The model focuses on regenerative farms and a “Farm to You” network that connects Palawan-based products directly to global consumers. By 2025, Lionheart reported collecting 6.22 million kg of coconut sap, representing a 285% increase over 2024, alongside a 44 percent increase in revenue. This model significantly boosts local livelihoods, as a Lionheart tapper earns a monthly average of ₱22,701, which is nearly double the regional minimum wage and significantly higher than the national average for coconut farmers. Centralized consolidation has also allowed for Grade A+ BRCGS scores and various international organic certifications, ensuring that Palawan-based sap products meet the highest global standards.
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