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Family Type and Incidence VALUE CHAIN INTEGRATION, CLUSTER COOPERATION, AND SUSTAINABLE LIVELIHOODS: BRIDGING SMALL FARMERS TO HIGH VALUE MARKETS _______________________________________ A Dissertation presented to the Faculty of the Graduate School at the University of Missouri-Columbia _______________________________________________________ In Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy _____________________________________________________ by RENE C. TACASTACAS Dr. James Rikoon, Dissertation Supervisor MAY 2011 The undersigned, appointed by the dean of the Graduate School, have examined the dissertation entitled VALUE CHAIN INTEGRATION, CLUSTER COOPERATION, AND SUSTAINABLE LIVELIHOODS: BRIDGING SMALL FARMERS TO HIGH VALUE MARKETS Presented by Rene C. Tacastacas, A candidate for the degree of doctor of philosophy, And hereby certify that, in their opinion, it is worthy of acceptance. Professor James S. Rikoon Professor Jere L. Gilles Professor Mary Hendrickson Professor Corinne Valdivia ACKNOWLEDGEMENTS Five years and ten months—the length of time it took me to complete my doctoral study at the University of Missouri. Along the way, many individuals have enriched my life and contributed their time, effort, and resources towards my fulfillment of a higher education. It is only fitting then that I now express my deepest gratitude to these people who have become part of the long journey of my academic career… …Professor Sandy Rikoon, my mentor, for painstakingly reading my manuscripts, challenging my ideas, suggesting new insights, providing comments, and editing my writing style; my committee members for their assistance and support: Drs. Jere Gilles, Mary Hendrickson, and Corinne Valdivia; Dr. Elizabeth Barham for her inspiration and guidance in starting out my specialization in the sociology of food and agriculture. …my Jesuit superiors and friends: Frs. Danny Huang, Jose Magadia, Timothy McMahon, Douglas Marcouiller, Bill Abbott, Mike Harter, Ralph Huse, Steve Koenig, and other Jesuits, for their financial, moral, and spiritual support during my years in special studies. … Gus Santos for generously welcoming me into his house in Columbia, Missouri; Lucy and Warren Zahler for the parental support they extended to me; Lucy and Ben Rivera for taking care of me in St. Louis City as their adopted son; the Filipino-American Community of Mid- Missouri and of St. Louis City for their valuable friendship and companionship. … my colleagues in the Rural Sociology Department at Mizzou for their help, contribution, encouragement, and camaraderie throughout the course of my PhD program: Cecilia Turin, Justin Thomas, Mike Morrison, Faustine Williams, Billy Jivetti, Bill McKelvey, Jill Lucht, Lila Khatiwada, Joe Tillman, Casey Locke, Debi Word, Donielle, Eleazar Gonzalez, and many others. …Bishop John Gaydos and Msgr. Gregory Higley for allowing and giving me the opportunity to exercise my priestly ministry in the Diocese of Jefferson City; the Catholic ii parishioners of Brunswick, Indian Grove, and Hurricane Branch Church for the hospitality and generosity they provided me while at Brunswick, Missouri and for the many memories of collaborating together to build the church as a community of disciples. …Joan Uy of the Catholic Relief Services (CRS) for her invaluable insights and for being an inspiration in the work of social development; Terry Tuason and Randy Paler of CRS for their helpful contributions to my research; Imelda Esteban, Erlinda Sayago, and the staff of Kaanib Foundation for their assistance in providing me the important information I need for my study and for sharing with me their experiences in working with people; Tyrone Uy of Jollibee Foods Corporation for the fruitful discussion about small farms and big firms. …the Jesuit Retreat House community in Malaybalay City, Bukidnon and the Loyola House community at Xavier University, Cagayan de Oro City for their generous hospitality and companionship while I performed my field data collection. …the farmers in Impasugong and Sumilao municipalities in Bukidnon who welcome me into their homes and endured the hours of interviews and discussions; Henelito and Rose Idagan for teaching me how to farm and produce food, for the assorted vegetables I brought every time I visited their farm, and for deepening my appreciation of rural living. …the Rural Sociological Society, John D. Bies Scholarship, and Curators’ Grant-in-Aid Scholarship, for the financial assistance during my data collection in Bukidnon, Philippines. …my own family, my brothers and sisters, together with their families, for supporting me in many ways and for their constant prayers. …everyone else whose name is not mentioned here but has been a great part in my intellectual journey…my sincerest thanks to all of you. You have endowed me with good things and fruitful experiences. Most importantly, I would like to express my deepest gratitude to God for all the wonderful blessings He has showered me through all these years. iii TABLE OF CONTENTS ACKNOWLEDGEMENTS .................................................................................................................... ii LIST OF ILLUSTRATIONS................................................................................................................... vi LIST OF TABLES ............................................................................................................................... viii ABSTRACT .........................................................................................................................................ix Chapter 1. HISTORICAL BACKGROUND AND INSTITUTIONAL CONTEXT ................................................ 1 Introduction Towards an Attempt at Restructuring Markets The Case Study Background The Setting: Municipality of Impasugong, Bukidnon, Philippines Philippine Agriculture The Philippine Vegetable Industry Significance of the Study 2. RE-EMBEDDING MARKETS TOWARDS SUSTAINABLE LIVELIHOODS .................................. 49 Introduction The Value Chain Analysis Governance of Value Chains Upgrading of Value Chains Clusters in Value Chains Sustainable Livelihoods The Conceptual Framework: An Attempt at Re-engineering Markets Research Design and Methods iv 3. SMALL FARMS, BIG FIRMS: RESTRUCTURING MARKET RELATIONS ................................. 93 Introduction The Onion Industry of the Philippines Re-engineering Value Chain Governance Structures Household Profile of Small Farmers Mapping Value Chain Integration Activities Upgrading Small Farm Production Systems Mapping Cluster Cooperation Activities 4. ASSESSING THE QUALITY OF LINKAGE MECHANISMS AND SMALL FARMERS’ PARTICIPATION IN THE VALUE CHAINS ....................................................................... 182 Introduction Unleashing Chained Values from Value Chains Cooperation or Cooptation? External Interventions and Unwanted Externalities Sustainability: Project Lifetime or Lifetime Project? 5. SUMMARY. CONCLUSIONS, IMPLICATIONS, AND RECOMMENDATIONS ........................ 224 Summary Conclusions The Intersection of Value Chain Analysis, Clustering, and Sustainable Livelihoods Frameworks Implications for Social Development Recommendations for Future Research Epilogue APPENDIX: HOUSEHOLD SURVEY QUESTIONNAIRE ..................................................................... 243 BIBLIOGRAPHY ............................................................................................................................. 247 VITA .............................................................................................................................................. 253 v LIST OF ILLUSTRATIONS Figure Page 1.1. Five sites in the Philippines chosen for the project ............................................................... 9 1.2. Map of the Philippines and Bukidnon Province showing the Municipality of Impasugong .................................................................................... 14 1.3. Gross Value Added by Industrial Origin (1985-2009) at Constant 1985 Prices .................. 17 1.4. Growth rates of the Agricultural Sector (1985-2009) ......................................................... 17 1.5. Average Annual Growth Rates of Selected Agricultural Commodities (1990-2009) ......... 18 1.6. Poverty Incidence among the Basic Sectors: 2000, 2003, and 2006 .................................. 19 1.7. Growth of agricultural employment (1991-2009) ............................................................. 19 1.8. Share of employment in total labor force by industrial origin (%) ..................................... 20 1.9. Labor productivity from 1990-2009 ................................................................................... 21 1.10. Land classification and coverage ........................................................................................ 21 1.11. Comparative Yields for Cereals, Fruits, and Vegetables ..................................................... 22 1.12. Vegetable Production and Area harvested ........................................................................ 29 1.13. Exports and Imports of Vegetables from 1994-2008 ......................................................... 30 1.14. Production and Consumption of Vegetables (1990-2009) ................................................. 31 1.15. Philippine population trends from 1980-2009 ................................................................... 33 1.16. Traditional Chain vs. Modern Chain ..................................................................................
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