SUPPORT SERVICES

2017

Department of Agriculture
Philippine Rural Development Project
IPLAN Mindanao Cluster
SUPPORT MARKETS
Support Markets:
products and services
in support of a range of
business functions to
actors throughout a
value chain
 Non-financial services
or Business
Development Services
 Financial services
Demand and Supply of Financial and
Non-Financial Services
PLAYERS IN THE SUPPORT MARKET
PROVIDERS Individual or
organization
that provides
services directly
to enterprises

Users
/Consumers of
Services
 FEE-BASED SERVICES
Trade Fairs/
Stall Rental

Training Services

Transportation
Services
Toll processing/Rental of Facilities
 EMBEDDED SERVICES

Technical
Advice

Cash Advance

Farmer
Technical Advice from an Input Supplier
Farmers pay for inputs; advice is given with no charge
FREE/SUBSIDIZED SERVICES
COMMERCIALLY SPONSORED
MECHANISMS
 PEER TO PEER/INFORMAL

Information, knowledge and advice available to farmers and other VC

actors through social relationships. This could include information and
advice on price, market and technology trends through social
networks or mediation through traditional cultural mechanisms
THE SUPPORT MARKET
NON-EXISTENT/WEAK SUPPORT MARKET EFFECTIVE

D D D D
ANALYSIS OF SUPPORT MARKETS
ANALYSIS OF SUPPORT MARKETS
TYPICAL MARKET CONSTRAINT

Lack of interest/trust: Due to the

lack of awareness, clarity and
proper information about the
benefits of the services
TYPICAL MARKET CONSTRAINT
 TYPICAL MARKET CONSTRAINT

MSEs are risk averse to trying services … and new ways of doing things
TYPICAL MARKET CONSTRAINT
I do not understand what
they are talking about.
Maybe they are from
another world…

BDS products lack

the features and
language
appropriate to
players context and
learning
aptitude/behavior.
(Mismatch!)
FINANCIAL SERVICES TEMPLATE
Player Demand for Finance Current Sources of
Financial Services
Input Working capital to buy and stock inputs MFI/Banks
Providers in adequate amounts and at the right Advances or guarantee from
time. assemblers

Provide these on credit to farmers.

Farmers Working capital to buy inputs and pay Smallholders
seasonal labour. Buyers: Trader/Processor/
Assembler
Capital or term loans for investment in Cooperatives
equipment Informal Lenders

Saving products, various types of Commercial Farmers

insurance including crop insurance Buyers
Private Lending Institutions
Money for daily needs and emergencies Banks
– while waiting for harvest MFI
Source: KII/FGD
FINANCIAL SERVICES TEMPLATE
Player Demand for Finance Current Sources of
Financial Services
Cooperatives Working capital to buy farm inputs for Banks
distribution to farmers Funding agencies

Working capital to buy produce from farmers

including harvesting and transportation costs

Capital or term loans for investment in

storage, transport, processing facilities, etc.
Traders Funds for lending to farmers Banks/MFI
Traders - Private lending
Processors Working capital to buy produce from farmers institutions
including harvesting and transportation costs Assemblers
Assemblers Funds for lending to farmers/traders Banks/MFI
Assemblers -
Processors Working capital to buy produce from farmers
including harvesting and transportation costs
Source: KII/FGD
WORKSHOP: SUPPORT SERVICES ASSESSMENT

SERVICES WHO DELIVERY

CONSTRAINTS
AVAILABLE PROVIDES? SCHEMES
GAP Training LGU Free Limited outreach of providers
Farmers do not see benefit/Weak
cost-benefit appreciation
High cost of compliance; measures
not tailored to farmers’ needs
Traders hesitant to pick up in
Transportation
Traders Embedded remote areas/low volume – poor
Services
FMR
Lack of transparency; cannot
demand for prevailing market price
Lack of transparency; cannot
Cash Advances/
Traders Embedded demand for prevailing market price
Credit