Farmer-To-Farmer | COVID-19 PANDEMIC IMPACT TO F2F COCOS HOST ORGANIZATIONS

Out of the eleven (11) F2F COCOS host organizations, only six (6) organizations were continuously operating despite the lockdown and mobility restrictions imposed within the country. Five (5) of the host organizations, mostly farmer cooperatives, suspended operations upon the instructions of the Government for an average of 60 days. These cooperatives have resumed operations since May 30, 2020, but at a reduced capacity or with staff working in shifts.

The COVID-19 Pandemic and the subsequent response of the Philippines Government to impose a community quarantine brought about reduction of revenue and cash flow for most host organizations and an increase in operating costs. However, five (5) of the cooperatives reported to have experienced an increase in the demand for their products. These cooperatives had on-going contracts or buying arrangements in place before the pandemic. One cooperative however, was able to innovate in the midst of uncertainty and found a new way to connect to buyers through the use of Facebook Marketplace, while others diversified into selling new products (e.g. virgin coconut oil, potting mix) due to an increase in consumer demand for health and wellness goods and personal sustainability.

For the coming 12 - 24 months, host organizations remain hopeful to see a rise in demand for products and active or return customers. However, they are also anticipating an increase in operating costs and a reduction in available inputs and raw materials. Revenue projections are grim with more than half of the host organizations anticipating a cutback on revenue.

Ahon sa Hirap, Inc. (ASHI), the lone Microfinance Institution (MFI) in the F2F COCOS portfolio, reported that the number of loan application, disbursement, and repayment was significantly down due to the Government’s policy (Bayanihan Heal as One Act of 2020[1]) of mandatory grace period for loans and other payment obligations, effectively moving the due date to 30 days from the lifting of the Enhanced Community Quarantine (ECQ ) on June 1, 2020.

In terms of internal policies, at the time of the interview, all host organizations disclosed that they did not implement any new policies related to COVID-19. At most, the organizations were following the guidelines that were released by the Government but did not craft their own.

The most prominent business constraints that the host organizations are foreseeing in the next 12 - 24 months are supply chain constraints, particularly inputs and logistics, and market access.

When asked about their priorities in the coming 12 - 24 months, host organizations are putting the safety and security of their staff and customers first. Their second priority is in securing business operations while the liquidity of the business comes in at third. Business growth, although important, is not seen as urgent during the time of the COVID -19 pandemic.

More than half of the host organizations continued their operations during the quarantine. They continued buying the harvests of their members for income generation both for the Cooperatives and to help the members. There were a few who extended much-needed support to their members in the form of grocery items as relief. The two agribusinesses, CocoAsenso and CocoTech, continued paying their employees even when production plants were at a reduced capacity.

Almost all the host organizations are seeking F2F COCOS support in terms of direction setting for their organizations, value addition for their products, and enhancing the skills and knowledge of their membership through technical training.

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COVID-19 PANDEMIC IMPACT TO F2F COCOS HOST ORGANIZATIONS