One-day Seminar on Solving The Cost

One-day Seminar on Solving The Cost –Price Squeeze

Problem in Agriculture  (SOCOPSPA)


The so called farm problem is about chronically and persistently low or negative farm profits that results from the cost-price squeeze phenomenon – a situation where farm prices are chronically close to or sometimes even below production costs.

The cost- price squeeze is an agriculture-wide problem that many agribusiness companies and government agencies should address because OF THE INCONVENIENT TRUTH that they are both VICTIMS and CAUSES of the aforementioned farm problem. Agribusiness includes suppliers of farm inputs (e.g. fertilizers, feeds), farmers and fishermen, financial institutions, agricultural colleges, research institutions, mass media, cooperatives, food processors, traders, food service providers, retailers and national agencies and local government units and other institutions involved in the production, processing and marketing of farm products).

They are victims because of   potential revenues and income foregone, unreliable supply of raw materials and low credit collection. They are causal factors because they may be engaged in financing, generating, disseminating, promoting and /or distributing technology or goods that enhance productivity per unit area and/ or increase acreage and consequently add to the frequent oversupply of commodities and low prices. According to Kenneth Ewart  Boulding “ Technical progress in agriculture brings about an increase in production. Then because of the inelastic demand for agricultural products, their prices are forced down… In eras of rapid technical change, therefore, agriculture maybe continuously unprofitable.”

John H. Davis and Ray A. Goldberg who jointly coined the word AGRI-BUSINESS suggested in their book A CONCEPT OF AGRI-BUSINESS that  “ From the stand point of future progress in the food and fiber part of the economy,  probably no other issue confronting commercial agriculture is as vital as finding a satisfactory solution to the cost-price squeeze…..  Because the cost-price squeeze is a complex problem brought about by a number of factors, on and off the farm, responsibility for finding a solution must be shared jointly by farmers, research agencies, the manufacturers of farm supplies and processors and distributors.”

The Seminar on Solving the Cost-Price Squeeze Problem in Agriculture (SOCOPSPA) was conceived in response to the observations that: (1) agribusiness institutions in the private and government sectors are not aware that they are jointly responsible for  finding solutions to the said farm problem because they are both victims and causal factors of the cost-price squeeze phenomenon and (2) many agribusiness managers in the Philippines and in developing countries lack awareness and understanding of the root causes of the cost-price squeeze phenomenon in agriculture, its multiple effects, and the policies and implementing mechanisms to solve the farm problem.


At the end of the seminar, the participants should be able to:

  1. Explain the agribusiness commodity system approach to analyzing and understanding the environment of agribusiness firms for threats (e.g. cost-price squeeze) and opportunities
  2. Define the cost-price Squeeze phenomenon in agriculture and explain its root causes
  3. Explain and advocate that many agribusiness companies and government agencies share joint responsibility in finding solutions to the cost-price squeeze phenomenon in the agribusiness commodity systems of which they are a part because they are both victims and causal factors of the said farm problem
  4. Discuss the soundness of fundamental public policies and their respective implementing mechanisms in solving the cost-price squeeze phenomenon
  5. Explain basic features of farm enterprises that make them different from non-farm enterprises and their policy implications
  6. Appreciate the potential economic gains that agribusiness firms will derive if farmers are economically healthy
  7. Discuss various ways that agribusiness firms and government agencies can do in helping solve  the cost-price squeeze phenomenon
  8. Explain  the cost-price squeeze phenomenon as an important problem area for agribusiness firms to exercise their corporate social responsibility of enhancing their potential for economic gains by doing good


  1. The Agribusiness Commodity System Concept: This topic will introduce participants to a selected number of conceptual tools for analyzing and understanding the agribusiness environment of which they are a part. The topic will also discuss basic policy alternatives and the institutions and devices that are commonly used in coordinating supply and demand for farm products
  2. The Cost-Price Squeeze Phenomenon: This topic will discuss the root causes of the cost- price squeeze in agriculture and the remedies for removing and counter acting  the said root causes.  It will also discuss the basic features of farm enterprises that make them different from non-farm enterprises
  3. Re-entry Plans: This topic will provide participants a framework for explaining and advocating various ways agribusiness firms, government agencies and agribusiness associations can do to help solve the cost-price squeeze




The target participants are top and middle level managers of agribusiness firms, cooperatives and government agencies and members of agribusiness based associations and federations.



The seminar speaker, Edward S. Tayengco is the author of the book entitled ERADICATING MASS POVERTY IN AGRICULTURE. The book is currently retailed at various outlets of the National Book Store. He is also the author of several articles on agribusiness policy. His work experiences include teaching, research and consultancy. He served as agribusiness management specialist in the faculty and staff of several academic and training institutions namely: Development Academy of the Philippines (DAP), Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), Asian Institute of Management (AIM) and College of Business Administration of the University of the Philippines (UPCBA). His research and consultancy engagements involved many poverty alleviation projects of the Philippine Government.



Registration Fee : Ph 2,400.00. This is a live-out seminar, which covers snacks, training kit and certificate of attendance.

Trainer EDWARD  S. TAYENGCO DEVELOPMENT OPTIONS AND ECONOMIC RESEARCH SERVICES a single proprietorship engaged in training, research and consultancy.

For your reservation, please call RBRDFI Training Officers:


Mr. Ace M. Calang      /      Ms. Grace Dimapilis.       /      Ms. Jesica Cepeda

Contact details: (02) 527-2969, 527-2980; 09178374604; 09178374603;  09178374599



For : RBRDFI |
Attention : Mr. Ace Calang (RBRDFI)
FAX No. : (02) 527-2980 (RBRDFI); 


Bank Name
Bank Address
Telephone Number