ARB vs DMPI agreement for 25 years: Investors need to develop the area offered by the beneficiaries

Case Study On Development Contracts (Pineapple) and Land Use Management Agreement (Bananas). Location occurrence of these cases in the province of Bukidnon, Philippines State. The main character in this issue is terrlibat local farmers Philippines (ARB), a pineapple plantation companies (Del Monte Philippines, DMPI land 30,000 ha), and banana companies (Skyland Dole Philippines, the land of 3000 ha / 6000 farmers). In the 1970s the land used for the coffee, but failed, in 1989 began to be taken over by ARB (farmers union Philippines) to plant corn, cassava and other crops. Initially they were before the contact area have formed a cooperative of fellow farmers in the Philippines but failed to thrive. The beginning of this case occurred because ARBs are having trouble paying amortization (depreciation of non-physical) of their land with the Land Bank of the Philippines (LBP), amortization with LBP in the amount PhP1,650 per hectare per year, then separate ARB, no participating DPMI da Skyland tone joined forced to tackle their amortization entered del monte kkr into lease agreements del monte kkr with two multi-national companies, Del Monte Philippines, Inc. and Skyland, Dole Philippines, Inc. promising them to pay their arrearages amortization ground with LBP. Agreements ARB vs DMPI shaped "Leasing Agreement" del monte kkr agreement while ARB vs Dole Skyland del monte kkr bebentuk "Contract Growing".
ARB vs DMPI agreement for 25 years: Investors need to develop the area offered by the beneficiaries become commercial pineapple plantations. Investors and DMPI 50:50 revenue sharing, the risk on the part of investors, farmers "guaranteed profit" and not allowed to go to work. agreed compensation del monte kkr for each harvest pineapple PhP775 per ton / cycle. Workers only 1 or option with 18-35 years of age only. While the ARB vs. Skyland Agreement Dole 15 years: the form of individual contracts, the system: land lease rental lease PhP12,000 per hectare arable per year increase every five years. In the 5-year lease rose to PhP13,800 second, third and fifth year lease rose to PhP15,870 / ha per year. Plus the land owners 18-60 years of age can work there, 1 ha filled 3-4 persons with wages Php163 per day + Php12 per day for an annuity. Lease of additional land to farm benefits Php 15,000 / yr.
Weaknesses can be identified as follows: The ability of officers visible from their experience in negotiating or dealing with investors, such as DMPI and Dole. Their separation decision to enter into an agreement with certain companies also demonstrated the inability of officers to unify their members. Given the small membership cooperatives, they can bargain for terms and conditions more favorable if the cooperative has a strong leadership to unite its members. Likewise, the weakness can also be attributed to the educational background of officials, from the highest level of education achieved del monte kkr two years of college. Key informants del monte kkr acknowledge that the leaders of the cooperative does not have the technical skills and managerial skills to enter into arrangements agribusiness and run cooperatives. ARB limited knowledge about contract negotiations encourages them to easily enter into an agreement that they think can solve their problems amortization payment of their land with the Land Bank of the Philippines without understanding the impact. Although the agreement set "profit sharing" or "guaranteed profits", the ARB only be understood as a rental lease and not for the result. These findings imply that the DAR field personnel should ensure that the ARB understand the content of the agreement before they sign a contract with the investor. Cooperatives and individual members failed to get a fair and reasonable arrangements with investors, and in carrying out its operations due to lack of experience and the ability of its leaders and the lack of unity and cooperation among its members. Given the educational del monte kkr background of the officer (second-highest level of college education) and lack of experience or exposure in any organization, they do not have the technical and managerial capabilities required to manage the cooperative. As a result, cooperatives are inactive because they only met when they were called to a meeting by the DAR and / or other agencies. Has a small capital build-up (CBU), does not have a permanent office, and has not provide any loans to its members. Cooperative relies only on production loans and grants from various financial institutions which have a fixed paid by the ARB.
Excellence farming system in the Philippines is described as follows: location of the farm is suitable for cultivation of banana and pineapple and generally for in agricultural. del monte kkr Philippine pick the culture of the people who are diligent and assiduous in agriculture, it is seen from the potential of the Philippines as a pineapple producer del monte kkr under Thailand's No. 2 and No. 5 world banana suppliers against large nations.