how an agricultural park in Liliw, Laguna generates profit through multiple revenue streams – Manila Bulletin
A farm requires many pieces of labor to run productively and generate profit. Silent Integrated Farm, an agricultural tourism destination in Lliw, Laguna, succeeds in this aspect by using a combination of business-to-business (B2B) and business-to-consumer (B2C) channels.
Don Cedrix Valois, Silent Integrated Farm’s agribusiness manager, shared with Agriculture Online how their farm is doing it.
B2B (business-to-business) is a business model in which a business offers its products or services to another business. In the case of farms, an example of this is when farmers sell their produce to vendors at market stalls or enter into agreements with restaurants to supply a certain ingredient.
For Silent Integrated Farm, they partner with restaurants like a samgyupsal restaurant in Victoria, Laguna to supply them with lettuce.
Don explained that farms hoping to go this route need to know how their crops are used in the market, and then identify local businesses that need those crops. Don added that for Silent Integrated Farm, it is better to sell to restaurants than to market stall vendors, as their income will depend on the fluctuation of crop prices if they choose to sell to the latter.
Meanwhile, B2C (business-to-consumer), sometimes referred to as direct-to-customer, is a business model in which companies sell their products or services directly to their consumers.
Silent Integrated Farm has a farm-to-table restaurant to offer meals made from their own farm produce, as well as a farm shop to directly sell the crops they produce. They also offer a pick-and-pay option where visitors can harvest the crop themselves and pay them based on weight. Lettuce is the main crop on their pick-and-pay service, but visitors can also harvest siling haba (Annual capsicum), okra (Abelmoschus esculentus), pechay (Brassica rapa), and sitaw (Vigna unguiculata).
But selling crops can’t do much. This is why they also transform their products to sell value-added products. They sell kaong vinegar (Pinnate Arenga), tea with stevia added as a sweetener, chili garlic oil, and powder made from malunggay, ginger, and turmeric that can be used to make capsules or instant tea. A food processing center is currently being built on the farm in order to be able to offer more products.
Don said it would be best if Silent Integrated Farm could make a profit from the products and services they offer on the farm itself. There’s a lot of competition for farms hoping to supply restaurants, so farms have to bid for the lowest price when they make a deal with restaurants. Nonetheless, a balance between B2B and B2C channels is necessary as the former helps keep the farm afloat. If they are dependent on customers buying produce from the farm, they will not be able to sell all of their supply and will only spoil their produce.
As their farm generates profits, they are able to hire more local residents to meet the growing needs of the farm. They are able to train more non-farmers to get into farming and help their employees pursue their ambitions. By earning more, they become better equipped to help their community while promoting their advocacy to recognize the strength and capacity of people with disabilities (PDs), older people and community farmers.
Photos by Jérôme Sagcal.
For all inquiries, contact Silent Integrated Farm through their Facebook page.
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