Session 2:

Cluster Commitment Setting (Step 4)

TOPIC 3: CLUSTER
COMMITMENT
AND POLICY FORMULATION
 OBJECTIVES:

At the end of the session, the participants will be able to:

 Explain the process in soliciting commitment from the
cluster members for the AE objective;
 Define policy and its importance;
 Enumerate the steps in formulating policies; and
 List the key areas for policy formulation that strengthens
the AE.
 TRIGGER ACTIVITY:
ROLE PLAY: CONDUCT OF CLUSTER
MEETINGS BASED ON 2 CLUSTERS
SITUATION
 Instruction:

 Divide the participants into 2 groups

 Each group will be considered as AED Cluster
 In each group select/identify your cluster leaders and
officers
 Based on the situation each group will prepare for a role
play
 Give them 10 minutes for the preparation of the role
play
 Role play will be presented for a maximum of 5 minutes
 Instruction:

Group 1 Situation: (Bukidnon Sites)

Kumontak ang isang Ginger Processor na taga-Davao sa isa sa inyong
cluster leader na ay gusting bumili sa mga magsasaka sa lugar ninyo ng
1.5 tons ng Fresh Class A na luya tuwing ikalawang lingo sa presyo na
PhP35.00/kilo sa loob ng 3 buwan na mag-uumpisa sa Nobyembre 2017.
Ang gusto niya ay idiliber ito sa kanilang opisina sa Cagayn de Oro City
kung saan may nakatalaga silang Purchasing Officer.
Bilang cluster leaders, ano ang inyong gagawin para mahikayat ang mga
miyembro na maisakatuparan ang nasabing oportunidad. Ipakita sa
pamamagitan ng isang role play sa loob ng 5 minuto (Cluster meeting)
 Instruction:
Group 2 Situation: (Bukidnon Sites)
Sa susunod na 2 linggo, and cluster ninyo ay nakaschedule na magdeliver ng 1 tonelada na
Fresh Class A na luya sa Purchasing Officer ng isang Ginger Processor na nakabase sa
Cagayan de Oro City.
Sa pag-monitor ninyo ng produksyun ng luya sa inyong mga nag commit na cluster
members, nagkaroon ng problema… maulan sa loob ng limang araw at may balita pa na
may bagyo na darating sa susunod na mga araw. Dahil dito, tumaas ang presyo ng luya sa
inyong lugar.
Nag-follow-up ang Purchasing Officer sa inyong commitment na 1 toneladang luya na
matuloy ang inyong delivery base sa agreements sa halagang PhP35.00/kilo.
Nagrequest ngayon ang inyong mga cluster members ng isang miting dahil maraming mga
traders sa inyong lugar ang napunta at nag-ooffer ng mas mataas na presyo sa pagbili ng
luya. Bilang isang cluster leader, ano ang iyong gagawin?
Ipakita sa pamamagitan ng roleplay sa loob ng 5 minuto ang magiging usapan ninyo.
 PROCESSING OF ACTIVITY

 What are the strength that the group were able to

do with regards to their situation?

 What are the weak points that needs to be

enhanced?

 Recommendations and suggestions to ensure that

the problems encountered by the cluster will be
resolved?
COMMITMENT OF FARMER CLUSTER MEMBERS

 The commitment of farmer cluster members to the

Agroenterprise Objective is expressed by way of the
cluster member signing the Cluster Supply Plan that
specifies each member’s number of Production Modules
and the percentage promised for consolidation to the
cluster
EXAMPLE OF VALIDATED SUPPLY PLAN(PEANUT)

NAME ARC: BBC ARC

CLUSTER NAME: ALIMOKON
1PRODUCTION MODULE: .25 HA.
PRODUCTION DATA/HA. 30/SACKS/HA. ; 30KGS/SACK

Area Date of Plan- Date of Prod’n voI Committed Validated Vol of

Name Signature
(ha) ting Harvesting (30kg/sack) Volume Commitment

1.Isidro Maguad .25 wk1 Nov 2016 wk1 Feb 2017 10 8 7 signed

2. Rhea Mae Andol .25 wk2 Nov 2016 wk2 Feb 2017 12 10 10 signed
3. Danilo Bayog .50 wk3 Nov 2016 wk3 Feb 2017 25 15 20 signed

4. Herman Caman 1.00 wk2 Dec 2016 wk2 Mar 2017 40 25 30 signed

5. Rowena Biongan .25 wk2 Dec 2016 wk2 Mar 2017 10 10 10 signed

6. John Nabor .75 wk3 Nov 2016 wk3 Feb 2017 15 10 10 signed

7. Amelita Cuaderes .25 wk3 Nov 2016 wk3 Feb 2017 10 8 9 signed

8. Evelyn Pido .50 wk3 Jan 2017 wk3 Apr 2017 15 10 10 signed

9. Danilo Bayog .50 Wk 2 Nov 2017 Wk2 Feb 2017 15 10 8 signed

10. Joy Misasa .50 Wk 3 Nov 2017 Wk 3 Feb 2017 14 10 6 signed

TotaI 8.75 wk3 Jan 2017 wk3 Apr 2017 147 136 106
 COMMITMENT OF FARMER CLUSTER MEMBERS

 The Local Study Team (LST) shall facilitate the Cluster commitment
setting through a conduct of cluster meeting.

 LST Team shall present the initial outputs of Steps 2 and 3 to the
cluster members to get their comments and suggestions for the
enhancement of the initial outputs which are the Product Production
Module and the Market/Value Chain Map/Diagram.

Production Module
for Peanut…
 COMMITMENT OF FARMER CLUSTER MEMBERS

 During the meeting of the cluster members, draw out the commitment
of the members (i.e. those who commit to bring in products for
collective marketing based on the AE objectives and are willing to sign
the cluster agreements)
COMMITMENT OF FARMER CLUSTER MEMBERS

 It is critical that the cluster hold

monthly meetings to assess its
commitment. The meetings can
be done by each cluster and
inter-cluster.

 The meeting should be facilitated

by the cluster leader. Likewise,
minutes of every cluster meeting
shall be documented using
recommended format (
FORMAT: MINUTES OF CLUSTER MEETINGS
Tool4.2.1
Date and Time Venue Facilitator

Minutes Taker Noted Cluster Leader

Attendance (Names)

Agenda

Other Matters

Announcements/
New Information
 COMMITMENT OF FARMER CLUSTER MEMBERS

 Cluster commitment is strengthened when there are cluster

policies and agreements that are formulated,
implemented and updated.
 THE ROLE OD AEFS IN THE IMPLEMENTATION OF
AED STEP 4:

Reminder, AEF Facilitator must:

 Organize/convene meetings of clusters for

formulation of cluster policies & agreements
 Validate the drafted cluster policies & agreements
 Translate cluster policies & agreements to local
vernacular
 Print out the agreed cluster policies & agreements
What is Policy?

POLICY is a set of ideas or plan that is used

as a basis for decision, especially in economics or
business.

It is not a tightly defined concept, but a

highly flexible one used in different ways on
different occasions.
Why is the Policy Important?

 Policy is the strategic direction that guides the organization

toward objectives and goals.
 Policies are the first line of defense against risks from an
organizational perspective.
 Policy defines the organization’s response in posture for
handling a specific business processes.
 Policy is being develop for business requirements, external
compliance, industry compliance or third party
requirements.
 Policies interpret and tailor laws that apply to your
organization.
Formulating policies and agreements involve
6 steps:

 identify the concern or problem;

 set the alternatives,
 formulate the policy proposal,
 legitimize the proposal through group
adoption,
 implement the policy, and
 evaluate and update the policy
KEY AREAS FOR POLICY FORMULATION IN AE
INCLUDE 8 AREAS

(1) membership,
(2) leadership,
(3) production/supply,
(4) group marketing,
(5) financial,
(6) individual savings/cluster fund,
(7) asset acquisition & management, and
(8) community service to other farmers
Sample Policies (8 Key Areas):
1. Membership
 Cluster Members shall attend the monthly meeting of the
cluster

2. Leadership
 Cluster Leader shall facilitate the regular (monthly Cluster
meeting)

3. Production/Supply
 Cluster members shall contribute the required quality
products for cluster marketing as promised in the supply plan
Sample Policies (8 Key Areas):
4. Group Marketing
 Cluster members based on the supply plan shall join the
agreed commitments for collective marketing

5. Financial
 Cluster members agree to pay a market facilitation fee
equivalent to PhP 0.30/kg of consolidated product for the
cluster marketing services
 The clusters must open bank account for the capital build-up
and organizational capital will be deposited
Sample Policies (8 Key Areas):
6. Individual Savings/Cluster fund
 Allocation of the income from the collective marketing;
40% rebate to the participating cluster
member
20% individual capital savings
40% organizational capital

7. Asset Acquisition and Management

 The use of equipment owned by the cluster shall be paid in
the amount of PhP_____ good for 1 day.
Sample Policies (8 Key Areas):

8. Community Service to Other Farmers

 Cluster members should conduct tree planting
activity within the community once in a year.
 WORKSHOP :
FORMULATION OF CLUSTER POLICIES
AND AGREEMENTS
 Instruction:

 Divide the participants into 8 groups of which each group will be

assigned in the recommended areas for policy that are need to be
developed for the cluster organization such as:
 Membership
 Leadership
 production/supply
 group marketing
 finance
 individual savings/cluster fund
 asset acquisition & management, and
 community service to other farmers
 Instruction:

 Each group are ask to develop at least 5 policies on the

assigned areas

 Give them 10 minutes to prepare the activity and write the

outputs in manila paper

 Present the outputs for comments and suggestions of the other

participants
 Key Learning Points:

 The results of the data gathering done in Step 2 (on

supply) and in Step 3 (on markets) and the proposed AE
objective are presented to the cluster members.

 Commitment to the AE objective is solicited from the

cluster members to ensure success of the AE.
 Key Learning Points:

 Commitment is formalized through the cluster

member’s signing of supply commitment in the
cluster supply plan.

 Commitment is strengthened when there are group

policies. A policy is course or principle of action
adopted by the group (cluster/organization)
 Key Learning Points:

 Formulating policies involve 6 steps:

 identify the concern or problem;
 set the alternatives,
 formulate the policy proposal,
 legitimize the proposal through group adoption,
 implement the policy, and
 evaluate the policy
THANK YOU VERY
MUCH!