Since its launch in 2008, Jollibee Group Foundation’s Farmer Entrepreneurship Program has assisted local onion farmers in building their agro-enterprises so that they can collectively supply high-quality vegetables that meet the standards of corporate buyers while providing them with a favorable income.

MANILA, Philippines — February 28, 2023. The World Bank recently released a report citing how the Philippines has made headway in reducing poverty in the country. In its report “Overcoming Poverty and Inequality in the Philippines: Past, Present, and Prospects for the Future” launched in November 2022, the World Bank said the country’s poverty rate fell to 16.7 percent in 2018 from 49.2 percent in 1985. It noted though that inequality remains high and needs to be addressed. Among its key recommendations is to promote an inclusive strategy in rural development.

“Despite the sector employing a sizeable share of the country’s workforce, the productivity of the farmers remained low and upgrading the connections of farmers to markets should be explored,” the report further noted.

“It is this reality that has existed even before the pandemic that has prompted the Jollibee Group to direct its Foundation to invest its resources in helping smallholder farmers in the country,” explained Jollibee Group Foundation (JGF) Executive Director Gisela Tiongson. JGF is the social development arm of Jollibee Group.

Since 2008, JGF through its Farmer Entrepreneurship Program (FEP) has been helping smallholder onion farmers improve their livelihood so they can better support their families. The Foundation works with partners to train farmers to become agro-entrepreneurs, enabling them to increase their income by delivering quality produce directly to institutional buyers such as Jollibee Group.

Jollibee Group has been sourcing a portion of its requirements for white onions and other vegetables directly from local farmers. In 2022, FEP partner farmer groups supplied almost 680,000 kilos of white onions to the company. FEP farmers also supply green bell pepper, tomatoes, calamansi, and ginger which are used for Jollibee, Greenwich, Chowking, and Mang Inasal products nationwide.

Farming as a Business

Under FEP, JGF and its partners organize smallholder farmers as clusters and hone their business and leadership skills so they can build agro-enterprises that can transact with corporate markets. Trainings in business include teaching farmers how to correctly compute their costs and price their goods to help ensure that they make a profit.

“Sabi ng FEP farmers, nakatanim pa lang ang sibuyas, may presyo na agad. Ito pala ang ibig sabihin ng farming as a business. Nagko-compute na kami bago pa magtanim [FEP farmers can determine the price of the onions prior to harvesting them. This is what it means when people refer to farming as a business—we’ve already computed our projected income even before we start planting],” shared Rhencor Julian, agro-enterprise facilitator at the Lourdes Multi-Purpose Cooperative (LMPC) in Magsaysay, Occidental Mindoro.

LMPC is one of JGF’s partners assisting FEP farmers in their agro-enterprise journey. Currently, six onion farmer groups composed of almost 300 farmers directly sell their produce to Jollibee Group.

As entrepreneurs, FEP farmers apply what they learn as they negotiate and agree on volume, quality, price, and schedule of delivery. They work hard to honor these commitments to sustain
their business relationship with the company.

“Proud kami dahil ang unang perception sa amin ng aming community ay hindi namin kayang magdeliver ng produkto sa isang market tulad ng Jollibee [Group]. Unti-unti itong nabago at marami na ang gustong sumali sa aming kooperatiba [We are proud of how far we’ve come because in the past, our community could not believe that we would be able to deliver products to the likes of Jollibee [Group]. This has started to change, and now, more people want to join our cooperative,” Rhencor concluded.

Modern Farming to Advance Agro-entrepreneurship

Aside from trainings, JGF has also assisted FEP farmers by providing access to agriculture technology to improve their productivity and the quality of their produce.

JGF works with local and international experts in introducing advanced farming techniques and systems, including providing accurate community-level weather forecasts, varietal trials, machinery testing, and soil health rejuvenation.

“We have worked with the PUM Netherlands Senior Experts, various seed companies, and Jollibee Group’s own Research and Development team to find appropriate onion and even bell pepper varieties that will meet the company’s requirement, and which can be more easily produced by the farmers,” Tiongson said.

JGF has also endorsed its farmer-partners to trucking companies so they can affordably deliver their produce, as well as linked them up with local banks and micro-finance institutions which can provide low-cost loans for production, working capital, and crop insurance.

“As we speak, JGF is looking at ways to further expand FEP and provide more value-adding support to our partner-farmers,” said Tiongson. “We continuously work with Jollibee Group Business Units such as Purchasing, Research & Development, and Supply Chain to discuss more options for farming communities on how to maximize their profits. We’ve also worked with the Department of Agriculture (DA) to study soil samples and recommend practices to FEP farmers to make soil healthier and more viable for greater yield. DA also guides them in complying with the Philippine Good Agricultural Practices to ensure the safety of the food they produce.”

Seventeen FEP farmer groups from across the Philippines have become accredited suppliers of the Jollibee Group, resulting in over 9,000,000 kilos of vegetables worth more than P360M delivered to the company since 2008.

With FEP as a sustainable inclusive business model that benefits both the company and farming communities, Jollibee Group has received multiple recognitions including the Tambuli Award for Corporate Purpose in 2022, the Franchise Excellence Award for Inclusive Business in 2019, the AGROW Award for Inclusive Business in 2018, and the Asian Corporate Social Responsibility Award in 2014.