OTOP: Profile, Practices and its Challenges (The Case of Atok, Kabayan, Sablan and Tublay, Benguet)

Abstract

Specifically, in this study, the respondents’ socio-demographic profile; the characteristics and/or profile of the identified OTOP marketed by the respondents; the communication practices applied by the respondents in marketing their products based on marketing channels and marketing strategies, the challenges encountered faced by the respondents in communicating their products, and the perceived suggestions and or solutions in improving the communication practices in marketing OTOP were identified. The community respondents were composed of six farmers and/or entrepreneurs in each municipality for a total of 24. The 10 key informants came from DA—Benguet, DTI—Benguet, Local Government Units and other concerned agencies in Benguet, Philippines who were chosen through purposive sampling from the four municipalities. An interview by schedule was used in the data collection. Results of the study show that majority of the type of ownership practiced by the respondents is sole proprietorship since they can manage their own business and make decisions concerning it. Majority of the respondents preferred selling raw products than engaging in food processing since they see it as more convenient and that processing materials are expensive. They have problems in accessing advanced technological materials in packaging as well as in labeling their finished product to help increase the marketability of the products. Agricultural exhibits, festivals, foundation day and trade fairs are ways identified in disseminating information and promoting OTOP. Also, the key respondents also stated that an article was published through newspaper companies namely Baguio Midland Courier, Baguio Sun Star and etc. Majority of the respondents communication strategies applied in marketing their products based on marketing channels are subscription, specifically, market matching to some known processing institution (i.e. Good Shepherd, Baguio City); trade fairs which have been practiced by the respondents and partnership has been created through establishing sister cities, provinces and towns. The marketing strategies being practiced by the respondents are direct buying, whole selling and agents. The respondents identified several challenges in the promotion of the selected OTOP such as: lack of farm-to-market roads, high competition in the market, unstable price, lack of communication skills, lack of food processing facilities, lack of support from concerned agencies and confusion on the selected OTOP in the municipality. Some of the perceived suggestions and/or solutions in improving the communication practices in marketing are establishing cooperatives since these creates linkages of business minded individual in creating good marketing channels and employing strategies to help boost income of the OTOP in helping the constituents of the municipality. There is also a need to institutionalize a municipal fiesta to promote the OTOP, for others to know the importance and the possible opportunities food processing can deliver from the community. Trainings and seminars are also necessary to boost confidence and create positive attitude of the farmers through the opportunities they can experience in processing.