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Case Study: Corn Working Group in the Philippines, Business Model
The Zamboanga del Norte Yellow Corn Project brings together value chain stakeholders to increase farmer participation in the supply chain and help them access markets, technologies and credit. The project, led by ZDMC Grains Inc. (or ZGI), aims to increase productivity, increase incomes and reduce poverty amongst 10,000 smallholder corn farmers and 24,000 livestock raisers by 2021. ZGI started as a company in 2012 by three entrepreneurs to address the constraints of yellow corn production in Zamboanga del Norte and fulfill the gap in demand within the livestock producing regions of the Philippines. By addressing both production and marketing challenges, the company has begun to convert lowincome white corn subsistence farmers in Zamboanga del Norte to yellow corn producers growing good quality and affordable yellow corn feedstock and connect these farmers to end-users, mostly cooperatives, in Batangas.
The Zamboanga del Norte Yellow Corn Project is still in its early stages with many challenges yet to be addressed. Nevertheless, Grow Asia believes that there are many ingredients in place for a successful multi-stakeholder, value chain project. Issues around risks of crop failure, indebtedness, and longterm financial self-sustainability need to be addressed, through weather-index insurance, links to off takers, and integrated training for farmers.