Improved domestic profitability and export competitiveness of selected fruit value chains in the southern Philippines and Australia program

Component 1
The activities for this project focused on the three objectives of the project which remained the same except for the slight modification in Objective 1 as follows:
Objective 1: To finalize component planning and identify collaborative opportunities
The production of papaya is concentrated in Mindanao, particularly the regions of SOCCSKSARGEN, Northern Mindanao and Davao which account for 65% of national output. The multinational companies growing the export variety Solo have huge plantations in these areas especially in South Cotabato. One of these exporting companies was initially identified as the commercial collaborator focusing on the China market. While the initial discussion of the Philippine and Australian researchers with the one in-charge of the papaya production and packinghouse operations regarding potential collaboration appeared promising, this did not materialize since the company's willingness to be part of the project was limited to implementing interventions at the production level. Another company was identified and efforts of the ACIAR project manager based in Davao to have them as a commercial collaborator did not flourish also. Since collaboration with these two major companies exporting papaya did not push through, efforts of the Philippine researchers focused on the domestic supply chain with papayas coming from Southern Philippines and distributed in Metro Manila. Commercial collaborators have been identified and project activities have been discussed.
Objective 2: To identify opportunities and constraints through supply chain analysis for Philippine papaya
Initial supply chain mapping, documentation of the postharvest handling practices and fruit quality assessment were conducted in three major supply areas in Davao, Misamis Oriental and Bukidnon. Buying stations, wholesale and retail markets, consolidators' warehouse and supermarkets were likewise visited. A multi-layered distribution and disaggregate sector characterize the papaya supply chain. From the farm until papaya reaches the retail market or the supermarket, it undergoes 10 to 12 handling steps. In one of the consolidator's warehouse, rejection ranged from 4 to 30% per shipment. Rejection was due to mechanical damage (bruising and compression), latex stain and diseases notably stem end rot. Wide variation in the maturity of the fruit was also identified as a major problem resulting in ripe papaya fruits that have a flat taste or not sweet. Bitterness is also one of the complaints of the consumers. Interviews with the key players indicated the need for introducing interventions to address quantity and quality losses along the supply chain. Enhancing awareness of the handlers as well as key players and decision makers in the chain on the role of appropriate postharvest handling is one of the initial steps in improving the supply chain.
Objective 3. To enhance profitability and competitiveness through supply chain improvement for Philippine papaya.
Preliminary study on retarding papaya ripening with 1-methycyclopropene (1-MCP) indicated the potential of the technique in solving premature ripening during transit. Improvement plans will be discussed with project collaborators and implementation of interventions will still be conducted after validation of the supply chain map.
Objective 4. To enhance profitability and competitiveness through supply chain improvement for Australian papaya.
Two commercial partners have been identified and suitable methodology for supply chain investigations have been trialled with collaborating scientists and extension workers.
Two supply chains have been mapped and handling details confirmed through an analysis of fruit performance. In the wet season monitoring, severe losses (25%) from post harvest diseases were identified. There were little differences between fruit performance at the wholesale markets and fruit sampled from the packing sheds with severe diseases developing rapidly during ripening. With widespread wet season conditions there was little differences between growing regions.

Component 2
Durian and jackfruit are marketed as 'flagship fruit' for their respective regions, Mindanao and the Eastern Visayas. Phytophthora has been associated with disease symptoms in durian resulting in high disease losses that can significantly reduce farm incomes. The severe decline of jackfruit in Leyte and Samar has similar consequences, but the cause remains unknown and no management strategies are in place. Improved orchard management is seen as a way of reducing disease losses, leading to sustainable yield increases and improved fruit quality and ultimately an increase in farmer income.
This project aims to improve the productivity of jackfruit and durian in the Philippines by increasing the understanding of Phytophthora diseases among industry stakeholders, enhancing the diagnostic capacity of local scientists and through the development of a range of effective integrated disease management options for farmers. Capacity building is proceeding in three key directions: (1) Training workshops to build diagnostic expertise and competence in disease management, (2) Disease surveys to establish the extent and cause of jackfruit decline, (3) Participatory action research trials to test a range of options for the management of diseases in durian and jackfruit.
A stakeholder training workshop was held at Camp Phillips in August 2008 to identify the key constraints to fruit production. Thirty five people from private industry, government organisations, universities and farmers representing the durian, jackfruit and papaya industries participated. To enhance the diagnostic capacity of local scientists and to overcome poor dissemination of information about disease management participants were received theoretical and practical training in the isolation, diagnosis, biology, epidemiology and management of Phytophthora. A training manual was prepared and distributed to all participants. To promote more effective dissemination of information about disease management, the concept of participatory action research was introduced.
Extension training workshops were organised by project collaborators in Davao and Leyte to disseminate information to extension staff and farmers. Twenty participants from the durian growing provinces in the Davao region attended the workshop organised by Concepcion Soguilon (Project leader), Arceli Yebes and Cyril Montiel at the Bureau of Plant Industries in October 2008. Twenty-one people, including extension staff and farmers, attended the workshop run by Lucia Borines, Gil Guadalquiver and Victoria Palermo at Visayas State University. These workshops extended information taught in the first stakeholder training workshop to more farmers and extension staff.
Topics for participatory action research (PAR) trials were discussed at the stakeholder and extension workshops. The PAR trials will test methods for the management of Phytophthora diseases in durian, and for the management of the unknown decline in jackfruit. These trials are currently being established in Mindanao, Leyte and Samar.
Disease surveys and isolations to determine the cause of jackfruit decline are underway in Leyte and Samar. A Phytophthora species has been isolated from canker and roots of jackfruit and from soil around jackfruit trees displaying symptoms. Samples were taken from jackfruit trees in Calbayog, Abuyog, Ormoc, Mahaplag, Sogod and southern Leyte. The Phytophthora species from all locations appear morphologically similar. Further morphological and molecular diagnostics will determine the species of Phytophthora that has been isolated. Seedlings of jackfruit are also being inoculated with the isolated Phytophthora to determine that the isolated organism is the causal agent of the symptoms observed in the field.

Component 3
A multi-disciplinary team of expert plant pathologists, entomologists and plant nutritionists is presently involved in an ACIAR funded project component addressing domestic profitability and export competitiveness of papaya in the southern Philippines and Australia. Activities during the first 12 months of the component included an inception meeting in Davao (July 2008), a Phytophthora disease identification and management workshop at Del Monte's Camp Phillips (30 July-1 August 2008), a baseline survey of Philippine papaya growers whose production is affected by insect pest, disease and nutrition-related issues ((8-13 December), attendance at local grower meetings in Australia where growers were given updates on proposed research and future benefits to industry, an in-depth review and planning meeting in the Southern Philippines city of Cagayan de Oro followed by visits to grower properties to see production issues first hand (1-3 March).

Component 4
HORT/2007/067-4 "Improved domestic profitability and export competitiveness of selected fruit value chains in the southern Philippines and Australia" aims to develop and evaluate sustainable practices for the integrated management of mango pests and field and post harvest diseases; develop and e valuate integrated crop management strategies for productive, profitable and sustainable production of high quality mangoes; and evaluate food safety issues that limit access and competitiveness in mango exports.
For the first year, the different sub-components have carried out initial activities/studies on: the ecology and management of important mango pests, identification of chemical pesticides to control mango diseases, soil and leaf sampling for nutrition studies, identification of pesticide compounds that will be included in the maximum residue limit (MRL) work; and collaboration with the Local Government Units (LGUs) in establishing farmer clusters and techno dermo sites as part of the extension activities.
The study on the ecology and management of cecid fly and thrips was initially conducted in Samal Island, Davao del Norte and Padada, Davao del Sur. In each site, sprayed and unsprayed trees from which random samples of panicles of flowers/fruits were collected at 7 day interval from 10 - 55 DAFI (Days after Flower Induction) were used. All insects present in the samples were recorded.
Thrips were observed in the samples but no cecid fly or signs of its damage were visible. There were 2-3 unidentified different species of thrips found in the flowers. Voucher specimens have been prepared and sent to experts for taxonomic identification. The population of thrips increased gradually from 10 - 26 DAFI and declined abruptly thereafter. the highest density was observed at 26 DAFI:20 thrips/panicle in Davao del Sur and 9 thrips/panicle in Davao del Norte. The population dropped to almost a negligible number as fruits were developing. Fruits with suspected damage from thrips, however, were observed during this period. Detailed studies to characterize the thrips damage on fruits will be conducted.
Spraying with insecticides reduced the population of thrips in Davao del Sur. Sprayed trees in Davao del Norte, however, had higher population of thrips than unsprayed ones. The impact of spraying on natural enemies could not be determined because the population of predators was nil.
Field collection and laboratory culturing of mango pulp weevils was done in Brooke's Point, Palawan. Preliminary laboratory tests were made to determine the appropriate dose of the frass volatile, acetic acid, which could be attractive to mango pulp using glue traps. Preliminary tests on the trap design were also made.
On the disease management study, systemic fungicides to be evaluated against SER (Stem End Rot) were identified. A mango farm located in Davao del Sur was visited and selected as the experimental site. Cultural management practices are currently being implemented on the site to prepare selected experimental trees for the treatments to be made.
The evaluation of biological control strategies against SER has been assigned to undergraduate thesis students and is progressing. Refinement of MAP and Hot Water Treatment in combination with fungicides is ongoing.
The study on the major sources and quantification of field inoculum of SER and diurnal pattern of SER inoculum as well as effects of temperature and relative humidity on the seasonal abundance of SER inoculum was assigned to thesis students, but the latter experiment was discontinued due to breakdown of the volumetric spore trip.
Cluster members in Samal Island are being identified and organised. Tools for benchmarking and assessment were developed.
On the nutrition study, two project activities are in progress: first is the effect of N, Ca and K on fruit quality and disease defense of mango; and second is a survey to establishing the relationship between soil and tissue nutrition concentration on fruit quality and incidence and severity of anthracnose in mango.
A 2-ha farm planted to 12 year old 'Carabao' mango was identified in San Antonio Babak, Samal, Davao del Norte to be used for the nutrition study to be conducted as part of an MS student thesis.
Survey sites, on the other hand, were visited during the second quarter of 2009. The survey is on-going with 10 to 14 farmer cooperators identified in Davao del Sur and Davao del Norte, respectively. Ten soil samples and ten leaf samples were collected from Savao del Sur and submitted to the laboratory of the Bureau of Soil and Water Management for analysis.
Initial results of the chemical residue study, identified Cypermethrin and Tebuconazole as the target pesticide compounds to work on, based on their importance to the mango industry and the current laboratory capability. Cypermethrin is a good candidate for the first 'pilot' compound, since violations of the cypermethrin MRL has been found in Philippine mango exports to Japan.
A detail of the supervised residue trials, which is superimposed with the insect and disease management sub-components, has been coordinated with Davao del Sur and Davao del Norte collaborators. Field experiments on Cypermethrin are ongoing in Davao del Norte and Davao del Sur project sites. USeP has taken on the coordination of field experiments on the Tebuconazole study superimposed with the disease management project. The first batch of mango samples in Cavite applied with Tebuconazole has been harvested for analysis.
In Australia, the first round of gene pool screening for disease resistance has been completed. Several entries have been identified with food resistance to anthracnose and SER. They will be confirmed under controlled conditions before selecting to advance for future rootstock work in disease management. Trials to evaluate basal applications of systemic pesticides to control scales and seed weevils have been established and are ongoing. Agronomic trials to standardize and link plant nutrition to plant defences have also been established.

Component 5
The activities and outputs for each component objective over the reporting period are summarised below;
Objective 1: To undertake an economic analysis of the value chain for the crops of interest in the ACIAR Program HORT/2007/067.
Glory Dee Romo (University of the Philippines Mindanao, UP Mindanao) and Leanne Orr (New South Wales Department of Primary Industries, NSW DPI) completed a case study showing how the team will undertake the initial assembly of price spread information for all fruit and vegetable crops relevant to both ACIAR Program HORT/2007/066 and this program. In this case study, a fruit crop, papaya, was chosen as the case study crop.
The UP Mindanao team (Larry Digal and Glory Dee Romo) prepared a draft marketing margin analysis for three fruit crops in Mindanao; mango, durian and papaya. Price transmission and net margin analysis were used to assess the performance (show any indication of inefficiencies) of the supply chains. The initial findings of the analysis show that inefficiencies exist in the supply chains of durian, mango and papaya. For example, the analysis showed an uneven distribution of benefits among participants in the mango supply chain with some players extracting benefits from others to gain higher profit.
Data for the draft marketing margin analysis was collected by the UP Mindanao team from the Philippines Bureau of Agricultural Statistics (BAS) database and from interviews with participants in the supply chain, such as; farmers, wholesalers, retailers, farm labourers, storekeepers, transport labourers and service providers.
Objective 2: To estimate the profitability of HORT/2007/067 Program outcomes developed under Components 1 to 4 and to use this to measure the Component impacts upon Philippine fruit industries and to enhance adoption.
A gross margin budget has been developed by Leanne Orr (NSW DPI) and Sonny Domingo (Charles Sturt University) for processing papaya (Cavite Yellow) in Region X. The gross margin budget was prepared for processing papaya grown for Del Monte Philippines Inc with data supplied by Del Monte Philippines Inc.
Leanne Orr (NSW DPI) has developed gross margin budgets for Red (Solo) and Yellow papaya grown in Queensland. These budgets are based on data provided by Queensland Department of Primary Industries and Fisheries (QDPIF).
The fruit gross margin budgets were circulated to other component leaders in March 2009 for their use and feedback and were also loaded onto the ACIAR Program website (see references).
Objective 3: To identify any policy constraints that may affect the adoption of technologies developed by the Program, and quantify their impacts at the farm level, and some cases the industry level.
A draft study of policy issues for fruit in the Philippines has been prepared by Dr Roehlano Briones (Philippine Institute for Development Studies, PIDS). It provides a picture of the current situation and identifies some potential areas of future research for the project. This policy project will be important in identifying regulation and monopoly power which will be reflected in the price spreads and may impede the adoption of technology at the farm level.
A preliminary whole-farm model is being developed for a fruit producing farm in Mindanao. The model is being developed by Dr Randall Jones and Leanne Orr (NSW DPI) with assistance from Sonny Domingo (CSU).
The models are based on a linear programming framework and is planned to be extended to a risk analysis framework so as to be able to help understand the constraints to adoption of technologies by Philippine vegetable farmers.
A number of other activities and outputs have also occurred for this program reporting period which have contributed to the achievement of the milestones set out for the Program.
A document has been prepared by Leanne Orr (NSW DPI) outlining where and how to access Philippine agricultural statistics of particular relevance to the fruit program. The BAS website provides a vehicle for access to two groups of statistical information on vegetables in the Philippines. The first group is in the form of BAS statistics and publications available for download. The second group of statistical information is available via a link to the CountrySTAT Philippines website. The document is available on the ACIAR Program website (see references).
Queensland and Australian papaya production and value data for 1995-2007 has been extracted from Australian Bureau of Statistics (ABS) statistics by Leanne Orr (NSW DPI) and placed in a spreadsheet which has been loaded as a further program resource on the ACIAR Program website (see references).
There have been key activities involving coordinating and establishing the component team which have involved building and developing relationships between the Philippine collaborators and the Australian team members. Dr John Mullen and Dr Randall Jones (NSW DPI) have both visited the Philippines and met will program collaborators (finalised and proposed) to carry out this liaison and relationship building activity. There are two program collaborators with which arrangements are not yet finalised for their involvement in the program. This activity will be ongoing with the final number of Philippine program collaborators intended to be five; UP Mindanao, VSU, PIDS, SEARCA and BAS.

Component 6
The principle activities within Component 6 has focused on ensuring that Component Leaders have successfully negotiated achievable activities within Australia and the Philippines with the component project leaders in line with the budget allocations. This has occurred at varying rates, but by March 2009, all changes to project applications have been completed.
Changes to the flow of funds and developing Letters of Variation have principally been driven by Betty Robertson in ACIAR, for which we are greatly indebted.
In Australia, significant investment of time has been made in the negotiation with the Industry peak bodies, to ensure that they were agreeable with the focus of the research programs, and that clear benefits to their industries are understood by them as well as their constituents.
Despite the disruption in funds reaching the project staff on the ground, in most cases significant progress has been made to ensure that the targeted outcomes for the project will be achieved.