Guidelines for the Establishment of Organic Trading Posts

January 19, 2012

DA MEMORANDUM CIRCULAR NO. 002-12

 

This Memorandum Circular is hereby issued to facilitate establishment of trading posts for organic inputs and produce and to ensure the strategic set-up of each post.

Concerned officials are hereby ordered to abide the following guidelines for the establishment of organic trading posts as approved by the National Organic Agriculture Board by referendum through its Board Resolution No. 04 series of 2012:

Guidelines for the Establishment of Organic Trading Post

I. Rationale

Organic Agriculture as defined in the Republic Act 10068 includes all agricultural systems that promote the ecologically sound, socially acceptable, economically viable and technically feasible production of food and fibers covering areas such as but not limited to, soil fertility management, varietal breeding and selection under chemical and pesticide-free conditions, the use of biotechnology and other cultural practices enhancing productivity without destroying the soil and harming farmers, consumers and the environment.

The same Act provided for the preparation of comprehensive program for the promotion of community-based organic fertilizers such as compost, pesticides and other farm inputs, together with a nationwide educational and promotional campaign for the use and processing, as well as the adoption of organic agricultural system as a viable alternative.

In order to strengthen the adoption and practice of Organic Agriculture as well as the consumption of the organic produce in the country, the availability of the organic inputs and produce through trading posts needed to comply with the requirements of organic agriculture standards.

RA 10068 Section 18 mandated the designation of a separate area to display the organic produce to avoid mixing it with non-organic produce in retail establishments or stores of organic produce. On the other hand, Section 19 mandated the Local Chief Executives to establish, as far as practicable, at least one (1) trading post for organic inputs for every LGU in their area of jurisdiction.

To facilitate establishment of trading posts for organic inputs and produce and to ensure the strategic set-up of each post, specific guidelines for this concern shall be provided and implemented through the DA in collaboration with local government units and congressional districts.

II. Objectives

To establish a defined organic trading post for organic producers that will:

a. Ensure availability and accessibility of certified and/or registered organic inputs and organic food for farmers, producers, manufacturers and stakeholders interested in adopting organic agricultural practices;

b. Promote and showcase farmers' organic produce such as organic inputs and products in strategic areas.

c. Provide an outlet for selling organic food products.

III. Scope and Coverage

The guideline establishes the rules applied by the Department of Agriculture for establishing trading post for organic inputs and organic food in strategic areas as identified by the DA-Regional Field Units (DA-RFUs) through the help of the local government units (LGUs) and the congressional districts.

IV. Implementation Mechanism

A. Selection of Target Sites

Priority areas for the establishment of the trading posts are the following:

1. Convergence initiative sites as identified by DA, DAR and DENR

2. Sites/Areas where organic farming is advanced as identified by DA-RFU Organic Focal Person

3. Areas with established demo farms when feasible under the Organic Agriculture Program

B. Selection of Products to be Sold in the Trading Post

Products allowed to be sold in the organic trading posts are the following:

1. Third party certified products.

2. First party and Second party verified and/or PGS products.

C. Eligible Proponent or Recipient

Only the local government units are eligible to be the proponent or recipient of the organic trading post. They must satisfy the following criteria to qualify for the project.

a. Willing to provide the counterpart for the project

b. Must have an existing Local Technical Committee on Organic Agriculture (LTC/OA)

c. Must have a Local Ordinance in support of the Organic Agriculture Program in their respective area

d. Must identify or create a Management Team who will oversee the implementation and operation of the Organic Trading Post

D. Operation of the Organic Trading Post

The Organic Trading Post maybe established either for organic inputs or organic food products only or a combination of both organic inputs and organic food products. In the case of the latter, proper sectioning of the trading post should be observed.

The trading post should be managed by a Management Team duly created or identified by the LGU. The management team can be an existing organized group, cooperative, association or non-government organization, in which case, a Sangguniang Panlalawigan/Bayan Resolution should be issued identifying such group as the Management Team for the trading post. In absence of an organized group, the Local Chief Executive (LCE) may assign or designate the Management Team. The Management Team should be composed of not less than three (3) personnel who will be headed by an Operation Manager.

In order to promote organic products sold in the trading post, the LGU should conduct a regular "Organic Market Day".

The LGU shall open a separate Bank Account and maintain a separate Book of Accounts for the operation of the trading post to ensure sustainability of operation. The Book of Accounts should be always open for audit.

V. Counterparting Scheme

The organic trading post will be established on a counterparting arrangement with the Local Government Unit. The following are the counterparting scheme.

Department of Agriculture	LGU/Project Recipient
Trading post building	Land for the trading post building
Trading post facilities and	Management Team
equipment
Initial working capital	Operating capital (MOOE and
	overhead expenses)

 

VI. Stall Rental Subsidy for Organic Producers

This provision of the guidelines is open to cooperative, association, non-government organization, people's organization, faith-based organization, individual and agribusiness firm involved in organic food and non-food production, wholesale and distribution, processing, marketing and retail selling.

The DA, as a component of the organic trading post shall provide stall rental subsidy for organic producers who want to sell their organic inputs or organic food products to retail establishments and organic stores. The period of subsidy would be a minimum of three (3) months and a maximum of six (6) months. This is to provide enough time for the producers to establish its own market outlets.

Products to be sold in the subsidized stall follow the same qualifications set in IB.B. of this guidelines. Organic producers who are qualified to avail of the subsidy should be duly endorsed by the Local Technical Committee and the DA Agribusiness and Marketing Assistance Division.

VII.Monitoring

The DA through the DA-RFU Organic Focal person and Agribusiness and Marketing Assistance Division (AMAD) shall conduct periodic monitoring of implementation and operation of the Organic Trading Post. The Local Technical Committee shall regularly submit to DA a progress or status report on the operation of the trading post.

VIII.Penalty Clause

Operation of the trading post commences immediately upon its completion (building fully constructed, equipment installed). The DA, upon evaluation and recommendation of the Agribusiness and Marketing Assistance Division (AMAD), reserves the right to transfer the management and operation of the trading post to any entity it deems capable of, should any of the following instances occur.

a. LGU failed to operate the trading post one (1) month after its completion

b. The trading post stopped its operation for at least three (3) consecutive months

Aside from waiving the right to continue managing the operation of the trading post, the LGU shall likewise refund to DA the total amount of the latter's counterpart fund.

IX. Additional Regulations

Other Regulations may be introduced and notified when they become necessary to ensure successful implementation of the project.

X. Effectivity

This Order shall take effect fifteen (15) days after its publication in a newspaper of national circulation or in the Official Gazette or its filing with the UP Law Center.

 

(SGD.) PROCESO J. ALCALASecretary