Stronger Markets, Stronger Farmers: The PAHP–Sagip Saka Effect in Cagayan

The Partnership Against Hunger and Poverty (PAHP) and the Sagip Saka Act (Republic Act 11321) have supported Agrarian Reform Beneficiary Organizations (ARBOs) in Cagayan — focusing on market access, income stabilization, organizational capacity, and legal procurement frameworks:

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📌 1. PAHP: Direct Market Linkages and Sales Opportunities

PAHP, implemented by the Department of Agrarian Reform (DAR) under the Agrarian Reform Beneficiaries Development and Sustainability Program, connects ARBOs directly with institutional buyers (government agencies and partner institutions) for the supply of agricultural produce. Through PAHP:

• ARBOs are linked to formal institutional markets such as feeding programs (e.g., Bureau of Jail Management and Penology facilities supplying PDL feeding needs), allowing them to sell locally grown vegetables and other produce on agreed terms.

• These market agreements provide ARBOs with predictable buyers and stable sales opportunities, reducing the reliance on volatile informal markets and middlemen, which often depress farmgate prices.

• Across all regions where PAHP is implemented, such partnerships have generated structured sales agreements worth billions for agrarian reform beneficiary enterprises.

In practical terms, for ARBOs in Cagayan:

• Participating ARBOs can secure purchase contracts with government feeding programs and other local institutional partners.

• Regular procurement encourages consistent production planning and better logistics, which helps ARBOs improve collective capacity and negotiate better pricing.

Even though specific sales figures for Cagayan are not always published regionally, the PAHP model has been replicated nationwide and supports ARBOs’ income and market participation in the province in similar fashion to other regions.

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📌 2. Sagip Saka Act (RA 11321): Legal Foundation for Direct Government Procurement

The Sagip Saka Act institutionalizes market access by requiring national and local government agencies to procure agricultural and fishery products directly from accredited farmers’ and fisherfolk enterprises — including ARBOs — for use in feeding programs, relief operations, and other government needs.

Key mechanisms that support ARBOs under this law include:

a. Direct Government Procurement Without Competitive Bidding

• The law allows government agencies to purchase produce directly from accredited ARBOs, bypassing traditional public bidding processes — this lowers administrative barriers and creates reliable sales channels.

b. Institutional Market Expansion

• Beyond PAHP partners, Sagip Saka empowers all government buyers (e.g., schools, hospitals, social feeding and nutrition programs, disaster relief procurement) to source directly from ARBOs.

• Regional and local government units in Cagayan Valley can thus tap ARBOs for their procurement needs, broadening market reach beyond DAR-facilitated PAHP agreements.

c. Enterprise Development and Support

• The Act establishes the Farmers and Fisherfolk Enterprise Development Program aimed at strengthening ARBO business skills, market readiness, production quality, and value-chain participation.

• It also provides for capacity building, access to financing assistance, and promotion of enterprise competitiveness — critical elements for sustaining ARBO participation in institutional markets.

In Cagayan, this means that ARBOs with accredited status under the Sagip Saka framework can:

• Supply directly to any government agency with needs for agricultural products (e.g., DSWD feeding programs, DepEd school feeding), without repeated competitive bid processes.

• Benefit from a broader institutional buyer base beyond PAHP, which alone focuses on specific partnerships to fight hunger and poverty.

• Strengthen their operational and marketing capabilities through enterprise development resources promoted under the Act.

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📌 3. Combined Contribution of PAHP & Sagip Saka for Cagayan ARBOs

While PAHP and Sagip Saka operate through different mechanisms, together they form a complementary support ecosystem that enhances ARBO performance in the following ways:

Market Access

• PAHP secures initial and structured institutional buyers for ARBO products, providing reliable demand that motivates production planning.

• Sagip Saka allows expanded, legally grounded procurement opportunities across public institutions, increasing sales avenues and reducing reliance on a single market channel.

Income Stability

• Contracts under PAHP help ARBOs generate recurring sales, which in aggregate have reached billions nationally, benefiting local agricultural enterprises, including those in Cagayan.

• Sagip Saka reinforces income security by embedding direct procurement obligations across government agencies, promoting routine and fair transactions for ARBO produce.

Organizational Strengthening

• Through PAHP contracts and implementation support, ARBOs learn to coordinate production, quality control, and delivery logistics.

• Under Sagip Saka, enterprise development frameworks provide training, business planning, and support systems that help ARBOs transition into formal agribusiness entities capable of meeting greater institutional demands.

Food Security and Local Food Systems

• PAHP ensures that locally produced food also serves targeted vulnerable populations (e.g., persons deprived of liberty, school and community feeding), anchoring ARBOs within local food systems and public nutrition programs.

• Sagip Saka’s direct procurement reinforces this by channeling more domestic supply into institutional consumption, strengthening linkages between production and consumption within the region.

Active ARBOs in Cagayan that have participated in PAHP (and by extension can benefit from Sagip Saka-enabled procurement) based on available reporting and government coordination activities:

✅ 1. DOH-DAR Marketing Agreements (PAHP) – Cagayan ARBOs

In Region 02 (Cagayan Valley), the Department of Agrarian Reform (DAR) and the Department of Health (DOH) signed marketing agreements under PAHP with five ARBOs, enabling them to supply produce for institutional feeding/services. This event demonstrates active involvement of Cagayan ARBOs in formal PAHP market linkages.

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📌 2. ARBOs Supplying to Institutional Buyers (BJMP)

DAR reports indicate that agrarian reform beneficiaries from the region are supplying fresh agricultural goods directly to Bureau of Jail Management and Penology (BJMP) facilities under PAHP marketing arrangements. While specific ARBO names were not listed in the media reports, this partnership confirms PAHP operational participation by Cagayan ARBOs as suppliers in institutional contracts.

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📌 3. Wider ARBO Landscape in Cagayan (DAR-CARP Monitoring List)

A 2024 monitoring and evaluation conducted by DAR and DTI in Cagayan identified a cohort of ARBOs/agrarian cooperatives active in marketing, production, and business development efforts. Not all may currently have confirmed PAHP or Sagip Saka contracts, but these are some eligible and present ARBOs in the province that could be participating in institutional procurement channels:

• MBG Farmer Irrigators Credit Cooperative (Rizal, Cagayan)

• Cabayabasan Multi-Purpose Cooperative (Lal-lo, Cagayan)

• Pata Multi-Purpose Cooperative (Claveria, Cagayan)

• Payagan Farmers Cooperative (Ballesteros, Cagayan)

• Sambaland ARB Cooperative (Sanchez Mira, Cagayan)

• Caagaman Multi-Purpose Cooperative (Aparri, Cagayan)

• San Mariano Agrarian Reform Cooperative (Lal-lo, Cagayan)

• Cambass Agrarian Reform Cooperative (Gonzaga, Cagayan)

• Maguing Multi-Purpose Cooperative (Gonzaga, Cagayan)

• Lasvinag Multi-Purpose Cooperative (Gattaran, Cagayan)

• Sta. Cruz Multi-Purpose Cooperative (Pamplona, Cagayan)

• Patasda ARB Cooperative (Allacapan, Cagayan)

• Evergreen Agrarian Reform Cooperative (Baggao, Cagayan)

• Concepcion Agrarian Reform Cooperative (Amulung, Cagayan)

• Salamin Multi-Purpose Cooperative (Tuao, Cagayan)

• Northern Sto. Niño Agrarian Reform Cooperative (Sto. Niño, Cagayan)

• Nabbotuan Farmers MPC (Solana, Cagayan)

• Solana West Farmers Cooperative (Solana, Cagayan)

• Villarey ARB Cooperative (Piat, Cagayan)

• Mabuhay Agri-Crop MPC (Piat, Cagayan)

This list reflects active ARBOs engaged with DAR support structures and represents the pool from which PAHP/Sagip Saka contracts typically emerge in the province. 

📌 About Sagip Saka Contracts

While specific Sagip Saka procurement awards tied to individual ARBOs in Cagayan are not widely published online, ARBOs with active PAHP institutional relationships (such as DOH and BJMP supply agreements) are positioned to benefit from Sagip Saka’s direct government procurement mechanisms. Sagip Saka — enacted as Republic Act No. 11321 — facilitates direct purchases from accredited farmer organizations like ARBOs for government feeding, relief, and nutrition programs, expanding market opportunities beyond PAHP alone. (General law description; not region-specific). 

Together, PAHP and the Sagip Saka Act provide Cagayan’s ARBOs with a two-pronged advantage: (1) practical, program-driven institutional buyers through PAHP and (2) an expanded, legally supported market environment that enables ongoing, diversified government procurement. This synergy strengthens ARBOs’ economic resilience, market legitimacy, and long-term prospects as viable agribusiness entities rather than marginal produce sellers.