About three weeks ago, I sat down with successful corporate executives to present to them an idea which I had long nurtured in my mind – turning farmers from mere raw materials producers into agri-entrepreneurs and corporate shareholders.
I thought of this concept knowing that one of the biggest failures of Philippine Agriculture is the fact our farmers have not risen to the level where they could participate in the processing and marketing of their products, thus missing added value.
Whatever price the middlemen and traders offer for the farmers produce is what they would just earn, a disadvantageous set-up because it is in processing and marketing where the biggest agricultural profits are realized.
Meeting with Mega Soft Hygienic Products CEO Aileen Choi Go and her husband, Emilio, along with their corporate staff, I presented the idea of organizing farmers and agri-preneurs who have joined the Philippine Wagyu Program into a shareholders of virtual corporation involved in producing quality Wagyu Beef which follows set standards.
Feeding and Rearing Management standards, including Bio-Security Protocols, would be set to ensure uniformity and consistency in Beef quality.
The virtual corporation will handle the marketing of Wagyu farmers who will join and ensure that for every kilo of premium Wagyu Beef sold, the farmers get incentives which will be transformed into shares in the corporation.
At an agreed time, farmers who have sold their Wagyu through the virtual corporation will get dividends on top of the actual price paid for their product.
I believe that this system would incentivize Wagyu farmers and encourage them to follow feeding and production standards which would set the Wagyu Beef produced by the association into a distinctive brand, Philippine Wagyu.
Emilio, Aileen and their corporate staff are now working on my very raw idea of turning farmers into corporate shareholders and while they say that it is a bit complicated, I am hopeful that something would be worked out.
Imagine Philippine Agriculture where farmers would earn more than just the raw products they sell because they too stand to earn more from the added value achieved through processing and marketing.
Farmers as Corporate Shareholders would be a dream come true for me as this would mark the emancipation of our farmers from exploitation and poverty.
