FRUIT GROWERS AS ENTREPRENEURS

FRUIT GROWERS AS ENTREPRENEURS

Virgilio T. Villancio

            A farmer once asked an old farmer, “Why do you have to plant those Lanzones if you will not enjoy it in your lifetime?” The farmer responded “ I am planting this not for me but for my grandchildren.”

            For this wise farmer, fruit growing is a legacy, an unselfish act. To him, planting fruits is not just for his profit, but for a vision, for the next generation to cherish. Before we invented sustainability, this farmer knows the term not just as a goal but a virtue. Do you think if our grandfathers did not plant Lanzones, we will have our famous Paete Lanzones? Or the Lanzones of Camiguin?

            However, it is not true that if you plant fruit trees today you will not enjoy it in your lifetime. While before, it is a long wait for that golden fruit to bear, new techniques helped as to savor the sweetness of Paete Lanzones in less than ten years. Dr. Ed Pantastico once told us that at least five years before retirement you should have a fruit tree orchard, which will be your retirement farming systems.

I found it to be true in the case of Mr. Jaime Goyena of Calauan who developed his orchard after his retirement from the Development Bank of the Philippines. Mr. Archimedes Cordero of Alaminos planted his Rambutan orchard in 1984, right before his retirement from teaching at Mapua Institute of Technology. Mr. Jaime Angcaco of Calauan, Laguna, did the same after his retirement from the Department of Public Works and Highways. Even our former Director, Dr. Diosdado Carandang have planted rambutan and Durian in San Pablo even before his retirement. I failed to talk with the retired and soon to be retiring staff of the Bureau of Plant Industry (BPI). I am sure our friend from Davao like Mr. Luis Petrache, Isidro Gandia, and Nong Paking have good story to tell. Of course, Mr. Danny Palang of DA-RFU8 should have started planting durian and jackfruit. They produce off-season Durian in Leyte. While at ARO, I also tagged along with Director Conrado Gonzalez while visiting Mr. Onofre Grino in Basilan and another Menzi plantation in Davao Oriental in 1982.

I am not from a fruit growing culture but rather a fruit gatherer. We find joy in picking up guava fruits in season. However, my intersctions with fruit growers since 1981 made me  dreamed of growing fruits such as Lanzones, Rambutan, and Durian, Quezon Province.

They have their own stories to tell but they have common characteristics and entrepreneurial experiences which most fruit growers also share. These lessons can help us if we will be venture into fruit growing business.

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Paper presented during the Fruit Congress sponsored by the Philippine fruits Association held at PCARRD, November 14, 2000.

They work for a vision

            A successful entrepreneur is determined to reach a mission. For Mr Alfonso Namudje Jr going to fruit growing is not a matter for retirement but a matter of choice. When the Namudje couple decided to quit their jobs with an assured salary income, they aspired of reaching a vision. They did not want to work for somebody else but for their own business. After his high school studies, Mr. Namudje Jr quit school for a year and claimed a seven-hectare homestead in Malabing, Kasibu, Nueva Viscaya. After a year, he went for college education (BSA) at the Gregorio Araneta University Foundation. On the other hand, his wife, Flor graduated from UPLB. Being a BSA (Animal Science) graduate, he started as a Farm Manager with Monterey farm in Canlubang, Laguna in 1975 where he met his wife, who is an Animal Nutritionist. They later on transferred to Domino Farm and Milagros Farm in Nagcarlan, Laguna. However, in 1985, the couple decided to go back to Nueva Viscaya and develop their own farm.

They are prepared for animal production venture but not for fruit growing. When they started developing the 7-hectare farm in 1985 and have planted a hectare area with Zinkom, other farmers frowned at them. How could they sell their fruits from a place 42 km away from tne nearest population center, Solano, Nueva Viscaya. The road leading to the village is an abandoned logging road. During the rainy season, it takes about 6-8 hours to travel the 42-km road. However, they persisted on a vision that if they have developed something in the area, the road will be developed someday and thing will become favorable. Namudje Jr even encourage other farmers to go with him into a field trip in Laguna and Cavite to show them that something could also be done in their area. Today, there are about 30 fruit growers in the village and the road had improved. You need only about less than two hours to travel the 42-km road.

From 7-hectare farm, the Namudjes now have a 14-hectare orchard planted with bearing Oranges- Hamlin (400 trees), Navel (500 trees), Trovita (300 trees) and Valencia (200 trees); Mandarins- Satsuma (800 trees), and Ponkan (800 trees). They also tried the Kalinga Mandarin (10 trees) and showed good potential, hence they are now reproducing it. They also have Red Chandler (300 trees) and Chinese Pummelo (75 trees). They can now afford to send the eldest daughter,  Jennifer to medical school. Alfonso Namudje III  who just graduated in 1999 (BS Agribusiness, UPLB) handles the marketing while Josephine is taking BSA plant Pathology at UPLB presumably inspired by the problems being confronted by their farm as far as citrus diseases is concerned.

            Even Namudje III has a vision to fulfill. He experienced that fruit from their farm are not enough hence he has to buy fruit from other farms. The problem, however, is the quality of the fruits from other farms. He envision to venture into input trading and refers other fruit growers to reliable nurseries for planting materials. The more fruit grower he could deal with, the more assured will be the volume of fruit he could market.

            This is the same case with the  Angcacos. After meeting an accident, Mr. Jaime Angcaco had to have an early retirement (51 years old) at DPWH. While they are in Talisay, Cebu, their children are already in Manila either working or as students. Since he had already retired his children convinced them (with his wife Lally) to migrate to Luzon. Out of his retirement benefits, he bought a 2-hectare farm in Paliparan, Laguna, which he planted to coffee. Even though the coffee is just barely one year old, they uprooted it and replaced it with Rambutan. With their children, they envisioned the farm to be an ideal orchard. Her daughter Emily is always on the look out for information about fruit trees management. She with her husband always buy reading materials for their father. His on-in-law even brought to him two seedlings of Durian from Thailand, which they await to bear fruit. His son Lito, a Marine Engineer, decided to live with the couple. He do not dream of leaving the country but rather stay at home with fruit trees.

Mr. Goyena’s vision of  Rambutan to be processed not only the pulp but the seeds as well is not far from reality. After he shared to me that vision, I tried eating the seeds and we could really find a variety that will suit that vision. He is determined for that vision and he had selected R-5 and R-13 which have excellent qualities.

They seek for self-reliance

            A fruit grower as an entrepreneur relies on their efforts and succeed by doing good in this undertaking. They do need technology and information about fruit growing but they do not wait for it. With limited knowledge, they do try and learn. Even without support from the government extension office, they engaged in fruit growing. Later on, they have the opportunity to seek advise from the experts, follow what they advise and become better than them.

For most of the growers I interacted with, experience was the best teacher for them. Mr. Cordero is a civil engineer, retired teacher, a businessman and stays at Bel-air, Makati. He has a farm in Alaminos Laguna which are planted to Rambutan. He planted about 1,200 trees in his three hectare farm in 1984 in a closely spaced manner with chico and citrus in between rambutan. Nobody told him that Rambutan has to be widely spaced at about 10 X 10 meters. However, he observed that the trees are closing its canopy and can not have a good stand. He started cutting the chico and the citrus and then later on other rambutan trees. Next year, he is planning to cut down some more rambutan trees so that the spacing would become 10 X 10 meters. He keep on asking and keep on learning.

Mr. Namudje Jr. was trained in animal production but planted Zinkom in Nueva Viscaya in 1985 until he found out that this is not the best citrus variety in his farm. In 1987, he started replacing Zinkom with oranges, mandarin and pummelo and now reaping good harvest at a good price. This was the  same experience of Mr. Angcaco who at first planted coffee in 1985 and later on replaced it with Rambutan.

They also seek for self-reliance in financing farm development. The Namudje Farm relied on own capital to develop the 7-hectare farm. It is only in 1992 that secured a loan of P 1.5 million from Land Bank of the Philippines for expansion of their orchard. This mean having a loan only when they have enough collateral to provide for the loan. After paying the loan in 1996, another loan was given by LBP. This financed further expansion to what is now 14-hectare farm.

They take risk

            Mr. Namudje Jr accepted the challenged. From a managerial position, he risked not only himself but his family as well in going to a far flung village and established an orchard. Whatever they have saved could just be lost if their ventures lost. He is open to new ideas as evident by his decision to replace the Zinkom variety by mostly imported citrus varieties. Despite some setbacks in their decisions, they are determined to reach their vision.

            Given information at hand and their experiences, ideas including hunches, they decide. Mr. Angcangco have to sell his Rambutan by contract if the contractor can give him a good price. If they can not agree with the price, he rather directly sell the fruits and take the risk. Most often, however, he received reasonable prices from contractors except during bad years when the fruit crops were damaged (1997 and 1998).

            Mr. Cordero always sells his rambutan to contractors but told me that this coming year he will retain the half of the trees and directly sell it by himself. He has to do it to know how fruit trading works. I told him about how my Tatay Temyong does it. He is a grower and at the same time a contractor. Sometimes he lost but most of the time he gains.

They are Industrious

            They value fruit growing as not just a business but life and work. Mr. Cordero told me that in order to succeed, a fruit grower must be a hands-on entrepreneur. You should not let your laborers do everything by themselves. You must always be on the look out on what are going on the farm. Work with them if you must. Lito Angcaco supported that by saying that everyday you must see your trees. If you miss to see the occurrences of insect pest damages and did not institute control measures, you will end up having damaged fruits and nothing to market. Mr. Goyena sees to it to be always in his farm whenever there are no outside calls. He is also busy in sharing his knowledge in fruit growing.

They are humble to be proud

Successful entrepreneurs started from humble beginnings. Although most of the case  I mentioned are retirees, they did humble themselves. From the comfort of their professions, they go back to the farm and till the soil. They are not ashamed to be farming.

How humble they could be but they are also proud of the fruit of their humility and industry. Mr. Goyena is proud of his R-5 and R-13. It is a product of his ingenuity and hardwork. I mentioned to Mr. Angcaco about those Rambutan varieties and he also like to try. A fruit grower always take pride in trying new varieties.

Mr. Namudje Jr, is proud of his oranges and mandarins. Mr. Namudje III should also be proud that he able to penetrate the fruit market dominated by imported fruits. He started marketing Satsuma outside of Nueva Viscaya while a senior student at UPLB. During the last season, crates with Namudje Farms mark can be seen in the fruit stand, fairs, and even at Rustan’s. Mr. Angcaco is proud to say that well known personalities already contracted the fruits of their Durians even if it is not yet flowering because they have tasted how different it is from the Durian they have tasted before. As Lally Angcaco said it, their success is founded on “sipag at tiyaga”.

 They are creative

            These entrepreneurs are never satisfied. They are creative and not satisfied with what they already have. Mr Goyena was not satisfied with Maharlika and keep on looking for a better selection especially those for processing. With more growers planting Rambutan, it is expected that there will come a time that we have to process the fruit. Having a processing variety of Rambutan is a good idea. Another product of his creative ideas is the multiple stock system, which will not only protect the trees but also have implication on tree nutrition.

            Mr. Angcaco always try new things even those he considered nonsense. Somebody told him that in planting Durian, he must put basal fertilizer plus sugar into the hole, cover it with soil and then plant the seedlings. The fruit of the Durian will be sweet. He did try it although he considered it nonsense. However, it turn out that the fruit of the Durian he planted is really sweeter. 

            The Namudje Farm  tried flower induction with a foliar fertilizer for off- season production especially if the trees did not bear good fruit during the previous season. However, if there is a good harvest during the previous year, they let the trees to flower in the regular season.

They help, they share.

            They get ideas from other growers and they also share them to others. Mr. Namudje Jr received some ideas from the former Vice-mayor of Solano, who also have friends having plant nurseries producing oranges and mandarins planting materials. These assured him of good quality planting materials. He in turn shares his knowledge to the growers in the village. Having more growers engaged in citrus production will benefit everybody in the village in terms of assuring volume of production for the market.

            Mr. Goyena is not selfish in what he knows. He always shares. He gained satisfaction if he could convince other growers on his ideas. This is also the case for Roger Maon. In the process, however, they also make business. They receive orders of planting materials as well.

They are happy

            They find joy in what they do. The trees flushing with leaves, with flowers and with fruits are joy for the eyes and for the heart. As more baskets get filled with fruits, more joy abound in the pockets. As more costumers go back and praise the quality of the fruits, growers are more inspired to work hard to always satisfy them.

            My father-in-law is also a fruit grower. He always find joy as he see his grandchildren finding happiness in picking the fruits of Rambutan or holding a big bunch of Lanzones. We missed the Lanzones this year but we have the bounty of Rambutan fruits. For the Rambutan growers, it is a blessing. A good harvest of Lanzones coinciding with the good harvest of Rambutan would mean a very low price for Rambutan.

They do have problems as well

        The main problems mentioned by entrepreneurs are reliable planting materials, pests, marketing and weather condition. It is disappointing for a grower to have waited for five years and realized that the fruit he planted is not the preferred variety. The Namudje farm recognized three varieties of Satsuma in their crop. The two varieties which are less preferred due to its low quality are now being replaced. Mr. Cordero is quite lucky that about 90 % of the Rambutan he planted are Super maharlika. He mentioned that some growers are duped by nursery owners and almost 50 of the trees are supsupin rather than tuklapin. Mr. Angcaco bought from a reliable source thus he did not encounter any problem about the quality of his fruit.

            Insect pest is a problem in Rambutan and Citrus production. Growers are always on the look out of possible outbreak.  Namudje Farm has to cut its Purple Passion Fruit sine it serves as alternate hosts.

 Prices of fruits are generally low during the peak season. One grower mentioned that it is the contractor that profits much than the growers.  Another grower, however, recognized the risk that is being assumed by the contractor. They do not sell the crop while it is yet in the flowering stage. Most contractors provide almost 50% allowance for possible fruit drop and most often offer a lower price. It requires skill on the part of the grower to also estimate the potential income of the crop given price projection at harvest. With this skill, they can negotiate a reasonable price for the crop.

            Crop diversification is an strategy to cope up with price and production risk. The Namudje farm have several varieties of oranges and mandarins. Lally’s Farm had included Durian and Lanzones in their crops. Mr. Obrero us thinking of integrating native chicken in his orchard. Mr. Goyena combined nursery operation with orchard. His nursery operation not only deals with rambutan but also other crops like Durian.

            Fruit growing always depend on the weather. Farms with irrigation possibilities can cope up with drought. Lally’s Farm installed an elaborate irrigation system to ensure that Rambutan do not suffer drought stress especially during the fruit formation stage. However, it is very difficult to cope up with typhoon. Growers (or the contractor) are fortunate this year that typhoon came when most of the Rambutan had been harvested. However, those trees heavily damaged by typhoon require at least two years to recover. In the case of Lanzones, production in Laguna have not recovered since typhoon Rosing in 1995.

            Some management approach, however, could mitigate the effect of typhoon. Windbreak trees are planted in the boundaries. In the case of Durian, Mr. Ancaco realized that pruning the trees to allow it to be only about four-5 meters height reduced the incidence of trees felled down by typhoon.

They reproduce

            Fruit growing is infectious. Mr. Angcaco decided to go for Rambutan growing because he saw his neighbor, Mr. Abrigo having a very good Rambutan orchard. Mr. Namudje ventures into Oranges and Mandarin production because they saw how other growers succeed. Mr. Goyena is not remiss in sharing what he knows.

            Lito Angcaco has a good appreciation of fruit growing thus he left his marine engineering profession. His brother is pursuing Civil engineering but more keen of establishing a fruit tree nursery. Alfonso Namudje III would rather  become an entrepreneur than be employed. His apprenticeship at Namudje Farm provided him with the insight on what other aspect of fruit production that has potential for improvement.

            How the fruit grower entrepreneur multiplies depend on how they are encouraged to be so. Most of the entrepreneurs I interacted developed their farms at their own effort. The industry and the growers association need to put more effort in promoting entrepreneurship. We have more growers having fruit crops in the backyard. These growers have already the seed of knowledge as to how the fruits are grown. They can become entrepreneur.  Through growers organizations engaged in community-based entrepreneurship, the development of entrepreneurial values and attitudes can be enhanced. With the availability of community-based support services to include research, extension, credit, inputs and marketing, growers will not only be dealing with production but on other aspect of the fruit growing business as well. Not everybody can be entrepreneur, but given favorable conditions, more fruit growers can become  entrepreneur.

           

(I wish to extend my gratitude to Mr. Jaime Goyena; Alfonso Namudje III, Archimedes Cordero, Jaime, Lito and Lally Angcaco, and other fruit growers whom I met since 1981 who provided me some insights about fruit production. Also my thanks to the Philippine Fruit Association for encouraging me to present this paper)