As we talked, I sensed something was wrong and they needed help so we processed them and found out that they were losing money on an untested marketing concept called Sabado Merkado at the parking lot of a Mall in the heart of the city. They said that they were charged about P5,000.00 per week for four hours of selling, roughly P1,250.00 per hour. Added to this fee is the cost of transport from Leon and Alimodian for them and their goods. Often, they have to stay overnight so they have to factor in the cost of food. They haven't added the inconvenience of sleeping without mosquito nets among their goods as well as the hardship of looking for clean toilets to relieve themselves.
They said they were selling organic vegetables worth about P15,000.00 every week which they and fellow farmers grow. At the most, the margin of profit would be about 25 percent or a mere P3,750.00, more or less which would not cover the cost of space rental! The Sabado Merkado has ended and the farmers say they have lost more than P42,000.00 from the rentals alone, not accounting yet, the efforts and the personal expenses they have incurred. That amount is badly needed by the farmers and it will take time for them to recover from that loss.
We proposed that they should also study their situation, their products and their market. Organic vegetables are not yet favored by Ilonggo consumers and there needs to be some visibility and the only way is to expose the vegetables longer in a high retail traffic area. Sabado Merkado cannot offer such solution. We proposed that they should find venues that would not charge them high fees and stay for a longer period so that the consuming public can be educated on the merits of organic farm products and thus establish preference and later patronage.
They also realized that their other major expense area is transport. Bringing in the products from the interior barangays up to the city market reach as much as P800.00 per week. The biggest transport expense is taking the taxi from the terminals to the stocking areas and from the stocking area to the mall parking area or to the retail market they have identified. The loss of more than P42,000.00, they said could have gone to the down payment of a multi cab which could have eased their burden and expense since the vehicle can go right to the communities where farmers grow their vegetables. The monthly amortization of P11,000.00 can easily be taken cared of from the income they get if they do not pay for the rentals at the mall.
The efforts of these farmers are recognized by the town mayor Hon. Rolito C. Cahilig who recently passed by their makeshift table at the Iloilo Provincial Capitol. Mayor Cahilig was profuse in his appreciation for Governor Arthur Defensor for allowing the farmers to display and sell organic vegetables along the covered passage way every Friday. This gesture had enabled the farmers to have a high visibility for their goods.
The Department of Agriculture Region VI had also opened an area for display and marketing of other groups too. Slowly they said, organic vegetables are gaining ground in the consciousness of Ilonggo consumers. We said that even if they are losing right now, they should sacrifice more if only to establish awareness among the Ilonggos that organic vegetables are healthier and safer. The exposure need not be expensive and they should find other venues which if possible would not be expensive, unlike the mall parking lot where the lease alone eats up 60 percent of their gross margin.
They should also find means to get reliable vehicle which they themselves would own to cut the expenses on transport. They can do this with a loan or with a grant from some donor agency. May be if ever there is a new grant, the project cost will cover such and should pay less on the consultancy fees of the supposed “experts”.
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