Improving Financial Returns to Smallholder Tree Farmers in the Philippines: Issues and Way Forward

This paper provides an overview of ASEM/2003/052 Improving Financial Returns to Smallholder Tree Farmers in the Philippines funded by the Australian Centre for International Agricultural Research (ACIAR) and which commenced on 1 January 2004. ASEM/2003/052 involves a series of interrelated research activities investigating ways to improve financial returns to smallholder tree farmers in the Philippines. The paper first discusses the main drivers for current low returns to smallholders that have been identified from research and extensive consultations with stakeholders. In particular, the effects of regulations on market access and product quality appear to be the dominant constraints on smallholders receiving higher returns from their existing tree farms. The paper then outlines the general research strategy that has been developed to address these constraints by improving the implementation of policy, helping smallholders access markets and through longer term policy initiatives. The important economic, social and environmental benefits of the project are outlined.