I.
Summary:
The cases analyzed in this report show that the investment models and
contractual arrangements implemented by Unifrutti -a major private company
producer, processor and exporter of pineapple and banana in the Mindanao
Region- have positive implications for the livelihood of the rural communities
involved. This study demonstrated the women and men have not equally
benefitted from the investment oppurtunities. Gender neutral practiced and
approaches do not necessarily lead to gender equitable result as learned in this
case study. Instead, both investment schemes and policy frameworks need to
recognize and address the differentiate needs and priorities of women and men
to ensure more gender equitable distribution of benefits. Unifrutti also engaged
with local rural communities through two main agribusiness models: growership
arrangements with agrarian reform cooperatives, and a corporate-managed
plantation, among others. The report focused on the analysis of the business
relationship between Unifrutti Philippines and three different cooperatives, as well
as on the operations of one corporate managed plantation – MKAVI, a subsidiary
of Unifrutti.
Positive outcomes offered several lesson as well as good practices for the
establishment of inclusive and sustainable partnership between private
enterprises investing in agriculture and local communities. Poor rural
communities were enabled to take part in the venture as a result of the
Comprehensive Agrarian Reform Program (CARP), which granted them secure
control over land and encouraged the formation of Agrarian Reform Beneficiary
(ARB) cooperatives. However, differing initial endowments of land holdings under
the reform, ranging in the cases studied from 0.75 ha per ARB to 3 ha per ARB,
have contributed to differential outcomes for ARBs engaged under similar
contractual arrangements with the company. In one case, farmers with very small
land received correspondingly lower gains from the agribusiness and were at
higher risk of poverty and indebtedness. Second, the creation of cooperatives
has been fundamental not only for engaging more efficiently and on a more level
playing field with investors, but also for generating additional benefits for the
communities involved. On the one hand, cooperatives (and alliances of
cooperatives) allow farmers to present a cohesive position which has, in the
cases studied, strengthened their bargaining power vis-à-vis investors.
International solidarity, NGO support and government programme support have
also played a role in supporting the negotiating power of the cooperative groups
in past business relationships. On the other hand, cooperatives are regulated
and well monitored in the Philippines. If well organized and trained can be
attractive investment partners. In the cases studied, investment from a private
enterprise, coupled with public and NGO actors involvement has complemented
and even augmented investments from the cooperatives and farmers’ own
resources. Third, ARBs noted that contractual negotiations and subsequent
dealings with the company are facilitated through open dialogue and timely
communication, thus developing a high degree of trust over time. Pricing terms
have allowed ARBs to make gains during market upturns, while minimum “floor”
prices are reported to be above average. By negotiating a Free on Board
contract with the company rather than a simple contract growing agreement,
communities have also been able to derive higher value added from primary
production and post-harvest sorting and packing. Finally, the mutual recognition
that both out growers and the company share risks unique to their roles, and
therefore should mutually support each other has been equally important.
However a major concern is associated with environmental risks as these still fall
heavily on farmers, in a country increasingly exposed to climate disasters and
related outbreaks of pests and plant diseases. The company emphasizes
environmental management through the provision of training and technical
support.
II. Point of View:
Management and workers plays an important role in decision making of Unifrutti
in Mindanao, Philippines. The case shows that the management sets corrective
measures that need to be adopted to modify cooperatives governance
mechanisms and structures, gender sensitive awareness and capacity
development iniatives. Management has a big role of solving issues and
analyzing what would be the best solution for the firm. Workers also has a part
of making decision, because they are the one who is directly affected every
problem that been encountered. Moreover workers urged to be aware and be
knowledgeable about gender equalities. The management and the workers
should coordinates in making decision so then no uncertainties would be chaos
in solving one problem and issues in the firm.
III. SWOT ANALYSIS:
INTERNAL FACTORS
STRENGTH WEAKNESSES
Strong corporate ethos High product cost
Biggest banana exporters in other Small land, lower gains
countries Fast turnovers of workers
High standard of thruthfulness Not uniformed wage rate in
different department
EXTERNAL FACTORS
OPPORTUNITIES THREATS
Income Generating Weather Conditions
Outbreak of pest and plant diseases
Strengthen bargaining power vis a vis
investors
Joint ventures to the other companies
Investments from a enterprise
Figure 1. SWOT MATRIX OF Unifrutti Philippines
As shown on Figure 1. One of their strength is one of the country’s biggest
banana exporters,Philippine bananas are mostly exported to Japan and China;
other markets include the Republic of Korea, Iran, and Singapore. It is also
strengthened their barganing power vis a vis investors. Unifrutti has a strong
corporate ethos, expressed in its mission statements, which declare a
commitment to improving the quality of life of the communities with whom it
works; set a very high standard of truthfulness; and commit to preserving and
restoring the environment. However their weaknesses are policy issues despite
the good practices and promising approaches observed through the cases
analysed, the existing national policy, legal and institutional environment
presents several challenges to the promotion of inclusive and gender-equitable
investments in agriculture. The policy and legislative context associated with
land-related investments is very complex, creating areas of administrative
overlap while also leaving significant gaps. Another weaknesses is farmers with
very small land received correspondingly lower gains from the agribusiness and
were at higher risk of poverty and indebtness. On the external environmental
forces it involves their opportunities and threats. One of their opportunities is the
creation of cooperatives has been fundamental not only for engaging more
efficiently and on a more level playing field with investors, but also for generating
additional benefits for the communities involved. They are also investing in a
private enterprises. They have a joint venture in other companies. These
opportunities are particularly important in cases where land resources are poor in
either quantity or quality and prove insufficient to lift families out of poverty. While
their threats are that women tend to be excluded from cooperatives’ decision-
making processes. It can also affect to the banana sectors the weather
conditions. However a major concern is associated with environmental risks as
these still fall heavily on farmers, in a country increasingly exposed to climate
disasters and related outbreaks of pests and plant diseases.
IV. Case Problem:
Unifrutti encountered different issues. Case study helps to identify facts
that constitute issues regarding to solve problems.
1. Substantial Gender Gap Inequalities
Regarding gender equality, results are less positive and there is still much
room for improvement. Men represent the large majority of members (between
80 and 95percent). Women are poorly represented in decision-making positions.
Many women workers in the banana plantations are excluded from selection as
Agrarian Reform Beneficiaries (ARBs) because priority is given to permanent
wage workers, who are predominantly men. Women also cannot vote on
important decision concerning land use. Gender sensitive awareness and
capacity development initiatives are needed to support this change.
2. Contractual parties has different wages
Unifrutti has un equal wage rate in packaging house in different contractual
parties. MKAVI pays there employees according to their work. It is unequal
because they have different wage rates. This made the production decreases.
3. Aquatic damages
MKAVI has applied strong chemical to banana plants roots which result for
the dying of aquatic resources in the river.
V. Alternative Course of Action:
Substantial Gender Gap Inequalities
A. In this issue Unifrutti Philippines should make a programme or make
agreement are stated clearly. This may help especially to women whom
not always included on decision making and who excluded on from
other opportunities.
Advantages:
Strong laws and agreement towards the rights of women or the
gender sensitivity.
It also help to change the customary practices that makes the
women less powerful and can voice out what they want to say or
do.
Helps out to understand more the gender sensitivity in Unifrutti
Philippines.
Disadvantages:
Most of it is poorly implemented.
And it is not been observed directly.
It takes time to implement the certain laws regarding to gender.
B. Unifrutti Philippines is advised conduct seminars on Gender Sensitivity
program
It helps to maintain and sustain the awareness of the workers and farmers to
know basic and reliable information towards Gender Gap Inequalities issues.
Advantages:
Gives additional guidelines and helps them to educate the issues
regarding on Gender Gap Inequalities.
C. Specified task division between men and women.
DisAdvantages:
Decision-making will be equally done.
Women has the power to speak out there ideas.
Disadvantagse:
Costly and timely
Some employees will not adapt changes.
The firm needs to make a specified task for both women and men. In order
to set balance and equality. And so that there would be no discrimination among
employees.
Disadvantages:
This costly and not everyone is interest to attend seminars. This
needs time allocation for both employees and farmers to attend.
VI. RECOMMENDATION:
I strongly recommended to use alternative A. Unifrutti Philippines need to
make a programme or make agreement for gender sensitivity in where legal
rights and contract agreement are stated clearly. The company should make
mutual understanding between the workers about the policy being made on
Gender equality programe. The company needs establish and make laws that
help the worker like women to work motivated. Women empowerment should be
considered. And eliminate the customary practices. It also help to be more
productive because it has additional human force in the production. Also it helps
to tighten policies on the benefits and incentives for womens. Having laws and
agreement is a big help in every firm because it protects the right of employees, it
helps to reach out the needs of every employees both its men and women. This
helps to resolve issues on Gender Gap Inequalities.
Reference:a-i444e.pdf