Socio-economic impact of cluster marketing: The case of Ned Landcare Association sweet pepper cluster

Abstract

Through clustering, opportunities exist for smallholder farmers to organize their output and to sell directly to institutional markets. This paper analyses the experiences of the cluster marketing approach in Barangay Ned, Lake Sebu, South Cotabato. The case demonstrates how farmers in the cluster group developed an enterprise plan, established linkages with a microfinance institution and negotiated sales to downstream market intermediaries. Farmers in the cluster increased their technical and marketing knowledge, improved their farming and marketing practices, improved their access to capital and increased their income. Trust, confidence, commitment and unity among cluster members were established through the cluster marketing approach.