Polytechnic University of the Philippines

COLLEGE OF SOCIAL SCIENCES AND DEVELOPMENT

DEPARTMENT OF COOPERATIVE AND SOCIAL DEVELOPMENT
Mabini Campus, Sta. Mesa, Manila

BUSINESS TO BUSINESS (B2B): A BARTER TO BARTER

CONCEPT PROJECT
Cooperative Principle #6 Cooperation among Cooperatives

A Project Proposal presented to

the Faculty of the College of Social Sciences & Development
Department of Cooperatives & Social Development
Polytechnic University of the Philippines
Mabini Campus, Sta. Mesa, Manila

In Partial Fulfillment
Of the Requirements for the Subject
COOP 3103 PROJECT DEVELOPMENT, MANAGEMENT AND EVALUATION

Submitted By:
Dominic E. Dela Rosa
Group Leader
Dianna Pastrana
Jude Arvic Villaflores
Franz Fabellar
Members

Submitted to:
Director Hilda San Gabriel
2nd Semester, School Year 2014 2015

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CONTENTS
ACKNOWLEDGEMENT
DEDICATION
INTRODUCTION
OBJECTIVES OF THE PROJECT
BACKGROUND OF THE STUDY
Definition, Barter to Barter Process

THE PROPOSED BENEFICIARIES AND PARTNERS

Cooperative Profile

GRANT CHART
ACTIVITY CHART
IMPACT OF THE PROJECT
Why should cooperatives involved in this project?

TIME SCHEDULE PER ACTIVITY

RECOMMENDATION AND CONCLUSION
REFERRENCES

Acknowledgement
We would like to take this opportunity to thank the dear persons who help and support
us to finish this paper in Project Development.

First of all we would like to thank our Almighty God for giving us the capacity, blessings,
good-health and guidance. Without Him we weren't able to finish the requirement in this course.

We like to extend our profound gratitude to our parents for moral, emotional and financial
support. Thank you for building us into strong person, for helping us keeping faith and hope to
continue this task. And for the love they give to us.
Our warmest thank to our Professors, especially Prof. Hilda F. San Gabriel for the guidance and
monitoring us. Our adviser, mother and friend, who continue sharing his knowledge and
experiences about our course throughout the semester, thank you!

We would like to extend our deep regards to Cavite Farmers Feedmilling and Marketing
Cooperative (CAFFMACO), Magallanes Womens Club Multi-Purpose Cooperative, and Caf
Amadeo Development Cooperative, to the managers and staffs for accepting us and make this
project paper possible. Thank you we'll never forget you.

Special thanks to our dearest classmates and friends for keeping their unwavering moral
support and encouraging words to finish this task.

Dedication
First and foremost, we would like to dedicate this paper we have to our Almighty God, for
the strength and knowledge He gave us to do this paper.

We would also like to bestow this paper to our dearest family who had continually guided
us and gave their love and support as we do this paper.

Also, we would like to offer this paper to our professors who guided us and shared their
knowledge to do this project proposal.

Lastly, we would like to give honor to our friends who help us and show their full support
to make this proposal possible.

Barter 2 Barter (B2B) Concept

Cooperative 6th Principle: Cooperation among Cooperatives

As stated in chapter 1, article 4 of the Republic Act No. 9520 " Cooperatives
serve their members most effectively and strengthen the cooperative movement by
working together through local, national, regional, and international structures."
"All cooperative organizations, in order to best serve the interests of their
members and their communities, should actively cooperate in every practical way with
other cooperatives at local, national and international levels (Gutknecht, 1995)."
Cooperatives can combine their social and economic benefits, utilizing their
combined resources to achieve mutual goals. Cooperative Development Agencies
embody this principle in action. This presentation provides some examples of how their
combined efforts have been vital in fighting poverty across the globe.

Introduction
Food security exists when all people, at all times, have physical, social and
economic access to sufficient, safe and nutritious food which meets their dietary needs
and food preferences for an active and healthy life.

Co-operatives contribute to food security by helping small agricultural producers

to solve the numerous challenges that confront them in their endeavors to produce food.
These challenges often include remoteness and lack of access to information about
food prices on national and international markets; access to high-quality inputs and

variable costs of buying seeds and fertilizer; access to loans to buy these inputs; and
lack of transport and other infrastructure in rural areas.

Agricultural co-operatives help farmers overcome these obstacles by offering

their members a variety of services such as group purchasing and marketing, input
shops for collective purchases, as well as building small producers skills by providing
them with knowledge and information, and helping them to innovate and adapt to
changing markets.

In helping to address this problem, we are proposing the Barter 2 Barter (B2B)
Marketing concept Project.

Business Marketing is a marketing practice of individuals or organizations

(including commercial businesses, governments and institutions). It allows them to sell
products or services to other companies or organizations that resell them, use them in
their products or services or use them to support their works.

Business marketing is also known as industrial marketing or business-tobusiness (B2B) marketing.

The Internal Revenue Service defines bartering as "the trading of one product or
service for another." You may remember doing this during childhood, trading snacks or
toys. The same concept applies in adult life, albeit with more valuable products or

services. The key difference between bartering and buying is that bartering does not
involve a monetary transaction. You simply offer an item you do not want in exchange
for something you desire.

Advantages
One advantage to bartering is flexibility. You can trade one related product for
another -- such as a laptop for a portable tablet -- or two completely different items -like a television for a lawn mower. You can even save money on travel by trading
homes, allowing friends to stay in your residence while you borrow their cottage or
house for recreation or proximity. Alternately, you might not even have to part with
material possessions, offering maintenance, construction or other services in exchange
for material goods or other assistance. Of course, there is the clear advantage of saving
money. Not only do you get something you need or want, but neither party has to spend
a cent.

Disadvantages
While bartering has immediate benefits, it can also cause serious complications.
This is especially true if you can't guarantee the trustworthiness of your fellow trader.
The other party doesn't require certification or any proof of legitimacy and you don't
have a warranty or consumer protection. You may end up trading a good item or service
in exchange for a defective or poor one. If this concerns you, limit your exchanges to
friends and family. Bartering also requires skill. You may overestimate the value of your
desired item and underestimate yours. As a result, the other party could exploit you. To

prevent this, focus on related items with similar value -- such as one large appliance for
another.

OBJECTIVES OF THE PROJECT

This project will be a great help to each selected cooperatives. With the help of
the participation of each other, they can create a new line of business or it will be easy
for them to have the materials needed in making products. For example, CAFFMACO,
Magallanes Womens Club Multi-purpose Cooperative, and Caf Amadeo Development
Cooperative can exchange each others products for barter without money involved. As
for this, they can start another business or product to be sold to customers. It can also
minimize the expense of each other as the part of b2b system. This process shall be
continually exercised to make this project possible.

The vision of this project is viable relationship amongst cooperative towards success.

B2B Project is a project that can comprise cooperatives to trade their products and
services.

Projects envision:

A sustainable system of trading.

Build relationships with the business community.
Create and provide meaningful opportunities among cooperatives.
Develop relationships and promote opportunities in which the B2B project can
contribute to and benefit from active involvement with in the community.

 To help and give cooperatives a privilege which can help both cooperatives and
community.

BACKGROUND OF THE STUDY

The B2B (Barter-to-Barter) concept that we are proposing is a way of trading
between selected cooperatives with different goods or products. It came from an old
system, which is the barter where some merchants are exchanging goods instead of
money. From this came the idea of having a new form of unity and cooperation between
cooperatives.

The act of trading goods and services between two or more parties without the
use of money. Bartering benefits individuals, companies and countries that see a mutual
benefit in exchanging goods and services rather than cash, and it enables those who
are

lacking

hard

currency

to

obtain

goods

and

services.

(http://www.investopedia.com/terms/b/barter.asp

B2B Process (Barter 2 Barter System)

By definition, bartering is the exchange of goods and services for other goods
and services (Synovus Financial Corp.). Meaning it is a form of a trade exchange
between two or more entities having different products or services without money
involve. As of today, the barter system has grown popularly to many businesses
because it lessens their expenses and makes their firm more profitable.

B2B or barter-to-barter system has its processes in order to work efficiently and
effectively. Below are the models of b2b process from an article of The Nature and
Roles of Money and Banks.
Split Barter

Figure 1. A Split barter. (a) Jane accepts Toms promise (IOU) in exchange for one of
her pigs. (b) When the wheat is ready, Tom exchanges some of his wheat for the IOU
that Jane has held.

Three-way barter
Figure 2: A three-way barter, with delay.
A second possibility would be to do an indirect barter. Even though Dick doesnt
want a pig, he might accept it from Harry in exchange for the potatoes that Harry wants,
as depicted in Figure 3(a). Then, when Toms wheat is ready, Dick could exchange the

pig for some wheat with Tom (Figure 10.3b). The pig would then have functioned as
money. Pigs are actually used as money in some cultures. We can call the pig an
example of commodity money. In this case there is no debt: Dick always has full value,
in the form of either potatoes or a pig. This is because the pig, the medium of
exchange, has intrinsic value.

Figure 3: An indirect barter.

A third possibility is for Tom to write an IOU. The exchanges could then proceed
as illustrated in Figure 10.4. Tom and Harry exchange a pig for Toms IOU. If Dick
knows and trusts Tom, he might be willing to accept Toms IOU from Harry in exchange
for giving Harry some of his potatoes. Later, when Toms wheat is ready, Dick can
present Toms IOU and get some wheat in return. In this example, Toms IOU will have
circulated as money. (Tom might have rephrased his note Tom owes the bearer wheat
to the value of one pig.)

Three-way split barter

Figure 4: three-way split barter.

We can now begin to see the full power of split barter, because if other people
know and trust Tom, then his note might not pass just from Harry to Dick, it might
circulate around the local community, facilitating other exchanges, before eventually
returning to Tom at harvest time. Toms note is token money, money with no intrinsic
value of its own: it is just a piece of paper with some words on it. The role of token
money is to permit split barter, and the power of split barter is that people doing
exchanges dont have to have matching wants. Tom can do half of an exchange with
Harry, and later he can do the other half with Dick (Davies, 2012).
We already see some of the models of b2b process, now our project proposal uses the
mixed process of it shown below.

CAFFMACO
(meatprocessed,
water, etc.)

Magallanes
Women'sClu
b MPC
(Muscovado
Sugar)

Figure 5: B2B Project Process.

Cafe
Amadeo
Developme
nt
Cooperative
(coffee)

As shown above, CAFFMACO have products such as meat-processed food,

water, feeds and etc. that can be a token for bartering with some products of MaWCo
and Caf Amadeo. As exchange Magallanes Womens Club MPC can use their product,
which primarily the muscovado, to CAFFMACO that can be offer in their market. While
for the Caf Amadeo, MaWCo can also exchange their sugar for some coffee. On the
other hand Caf Amadeo will be the one who will supply some coffee in exchange of the
products of the two (2) other cooperatives.
This process shall continually be practice in order to make this B2B project
feasible and effectively.

COMPARATIVE ANALYSIS
Business-to-business (B2B) is commerce transactions between businesses, such
as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.
Contrasting terms are business-to-consumer (B2C) and business-to-government (B2G).
B2B branding is a term used in marketing.

If your business is focused on selling products or services to other companies,

your model is called B2B, or business-to-business. In contrast with the business-toconsumer or consumer-to-business models, B2B facilitates the transfer of raw
materials, parts and components from which additional profit is derived, through
manufacturing or final sales to consumers.

An example of a traditional B2B market is automobile manufacturing. A vehicle's

components are generally manufactured by different companies, and the auto
manufacturer purchases these parts independently. The tires, hoses, batteries and
electronics may be manufactured by separate companies, and then are sold directly to
the automobile manufacturer. The products themselves do not end up in the hands of
consumers, though often, the end product of the purchasing business does. Because so
many small transactions result in one large business-to-consumer sale, B2B companies
tend to be high volume.

B2B, like all business models, requires some careful planning to undertake
successfully, noted Brent Walker, vice president and chief marketing officer at C2B
Solutions, a healthcare marketing consulting firm. "B2B typically relies on its sales
function and account management team to establish and strengthen customer/client
relationships," Walker told Business News Daily. "Marketing may include advertising in
trade journals, having a presence at conventions and trade conferences, digital
marketing (online presence, SEO, email outreach) and other traditional awareness
efforts."

In the Philippine setting, such examples of B2b are the call center companies.
Call center companies provide services to such businesses in the extent of relying
information, and of course attending customer complaints via phone. Such BPOs or
Business process outsourcing is widely used in the economy.

We choose some cooperatives in Cavite as the participant or beneficiaries of this

project. Below are the lists of the selected cooperatives with their corresponded
commodities:

Cavite Farmers Feed milling and Market Cooperative (CAFFMACO)

Feeds, Meats and Poultry
Magallanes Womens Club Multi-Purpose Cooperative (MAWCO)- Muscovado

sugar.
Caf Amadeo Development Cooperative- coffee.

PROPOSED BENEFICIARIES AND

PROJECT PARTNERS/IMPLEMENTERS
CAVITE FARMERS FEEDMILLING AND MARKETING COOPERATIVE
Gen. Aguinaldo H-way, San Vicente II, Silang, Cavite
Tel #: (046) 414-0418/ Telefax: (046) 414-2407
Email: caffmacofeeds@yahoo.com.ph

Our Core Values..

I Integrity
EX Excellence
C Cooperation
E Entrepreneurs
L Loyalty

Vision
A financially strong, dominant market player and technology driven multi-purpose
cooperative uplifting the quality of life of our members, employees and community.

Mission
To provide quality and competitive products and services that respond to
our members needs to ensure their financial security and well being;
To provide our employees career growth and development, a working
environment that promotes harmony productivity, wellness, empowerment
security, and sense of belongingness to improve quality of life;
To contribute to community development and promote ecological
protection;
To develop mutually beneficial partnership with our creditors and suppliers

Management
General Manager Mrs. Lucilla Adrias

Members

Assistant General Manager Mrs.

Mr. Max Ditangan

Angelina C. Bergonio

Mr. Leon Firmante

Mrs. Donalita Renier

Board of Directors

Mr. Jacinto De la Luya

Mr. Rodel Bawalan

Mr. Alberto Alvarez

Chairman

Mrs. Khristine Joy De Guzman

Mr. Laureano Rodrin

Board Secretary

Vice Chairman

WHAT CAFFMACO WAS, IS AND WILL BE

From its humble beginnings of literally pala-pala mixing (mixing using shovel), it
is with great pride and honor that the members of Cavite Farmers Feed milling and
Marketing Cooperative (CAFFMACO) can claim that their cooperative has grown by
leaps and bounds. Originally renting a small and decrepit feed milling plant at the
Union Theological Seminary, popularly known as the PCU in Pala-Pala, Dasmarinas
Cavite, CAFFMACOs operations are now fully mechanized, with a production capacity
of 20,000 kgs/hour.

How did CAFFMACO evolve from anonymity to become a by-word, a landmark, and a
model cooperative in Cavite?

CAFFMACO started as a mere idea of the barangay scholars trained in livestock

and poultry production at the International Institute for Rural Reconstruction (IIRR). To
enable them to have access to quality feeds at reasonable price, they sought the
assistance of a tri-sectoral body, namely: the IIRR, the PRLC and the Cavite InterAgency Conference (CIAC). Together with 22 representatives from various government
agencies, the religious and private sectors, they formed and organized on October 30,

1976 the CAFFMACO. The 28 founding members pooled their resources to put up the
initial share capital of P6, 030,000.00 bought on account from PRLC, to start its actual
operations on January 2, 1977, pioneering the animal feed milling industry in Cavite. In
1982, with a financial assistance of P2 million from the German Freedom from Hunger
Campaign and technical assistance from IRR, CAFFMACO started the construction of
its own manufacturing plant at Brgy. San Vicente, Silang, Cavite.

From initially renting a feed mill, 28 founding members and share capital of
P6,030.00, CAFFMACO as of December 31, 2006 produces 983,000 bags of quality
feeds with an average yearly sales of P663,000,000.00 to 2,066 members whose paid
up share capital reached P61,000,000.00. It has assets worth P252, 000,000.00, which
include its poultry and piggery farm at Maragondon, Cavite. A landmark within a
landmark is in the offing with the construction of the CAFFMACO administration building
which is now in progress. The sustained growth of CAFFMACO through the years was
made possible with the unwavering dedication, commitment, hard work and loyalty of its
officers, employees and members.

Not resting in its laurels, CAFFMACO is determined to expand its business

endeavors to better some its members. Its mission-vision and the upsurge in industry
competition are the driving forces that motivate CAFFMACO not to remain complacent.
It has sustained growth, without resorting to outside financing, through the active
participation of its satisfied members who continuously patronize its products and
services such as feed production, products dealership, broiler and swine dispersal

projects, production loans, consumer store, meat processing, water refilling station,
savings deposit, among others. Exploratory talks are being undertaken with concerned
government agencies and local government units to enable CAFFMACO to further
expand its business activities and operations. Initially created to assist small livestock

farmers, CAFFMACOs members now include professionals who are preparing for the
retirement, OFWs who foresee themselves coming back home for good., and business
enthusiasts who believe in the viability of its plans and programs.

From CAFFMACOs
diverse

business

operations, its members

have been privileged to
take their share of its
bountiful financial gains
earned from their active
participation that they were able to send their children to
the better schools, to acquire their own homes and/or
vehicles, and enjoy some perks in life that other could not afford, and other nonpecuniary assistance such as continuous training and seminars, scholarship grants,
insurance cover in SSS and Philhealth. In line with its vision-mission, CAFFMACOs
community involvement is very apparent, having actively participated in socio-cultural
activities in the communities in the CALABARZON, such as yearly medical mission,
support fund for the nutrition and feeding program, the cultural festivities showcasing
local products and traditions.

Control measures and safety nets are in place at CAFFMACO with its ECC from
the DENR and LLDA, monitoring by quality control officer who regularly reports to the
Bureau of Animal Industry (BAI), health insurance cover and annual physical
examination of its officers and employees. Updates in the latest technological
development in the industry are made available through attendance in seminars and
other forum.

What CAFFMACO was before, what it is today, and what it sees itself in the
future is best translated and made evident with the awards, citations and accolades it
has received from various organizations the government and private sector. Its vision of
becoming The best cooperative conglomerate serving the socio-economic-ecological
upliftment of its members, the country and the global community sums up its past and
present achievements and what it plans to become in the future

MAGALLANES WOMENS CLUB MULTI-PURPOSE COOPERATIVE (MAWCO)

Muscovado de Magallanes
Mawco Bldg. Water System Compound, Brgy. IV, Magallanes, Cavite
Contact Person: Amelia R. Artymiak
Contact Number: 0917 584 7473 / 0916 510 0781
Email Address: mawcomuscovado@yahoo.com
As early as the Spanish time, Muscovado locally known as pardo is being
produced by inherent method. Here in Magallanes, this traditional method is being
practiced extensively.
Freshly harvested sugarcane is deposited in a big grinder pulled by a carabao
slowly moving clockwise until the syrup flows into a big pail. This syrup is transferred to
a huge vat and boiled. To clean the syrup, lime is added, scraping the scum frequently
until the mixture thickens and then set aside in a large platter, raked until it dries; and
finally, using a wooden mortar, break the mixture finely until Pardo is completely
pounded.

Products/Services

 Muscovado Sugar
Microcredit to members
Markets and Customers

Congressman Crispin Boying Remulla

Needs Grocery
Taal Vista Hotel
Delfas Pasalubong Center
Cafe Amadeo
Pagasa Community MPC
Kaakbay Ka MPC
Microtel
Phinma Training Center
CACODEC

VISION
To be the forefront in the advocacy of women empowerment and promoting the
cooperative as a way of life in improving the social and economic well-being of the
people ready to face the challenges and be known not only in the local market but
globally.

MISSION
To encourage thrift and savings mobilization among members for capital
formation;
To create funds in order to grant loans for productive and providential purposes
to its members like educational and business loans;
To provide goods and services and other requirements of the members like loans
for livelihood of individual members for hog raising;
To engage in the cooperative manage coconut handicrafts and manufacturing,
repacking and marketing of Musovado raw sugar livelihood projects, etc;
To process/manufacture other food products like coconut by-products, etc;

 To work with the cooperative movement, non-governmental and goverment

organizations/entities in the promotion and development of cooperative and in
carrying out government policies; and
To undertake other activities for the effective and efficient implementation of the
Cooperative Code.

CAF

AMADEO
DEVELOPMENT COOPERATIVE
Barangay Dagatan, Amadeo, Cavite - 4119 Philippines
Contact Person: Cafe Amadeo Development Cooperative

Contact Number: (046) 682 0074 / 0917 503 9574

Email Address: cafeamadeo_devtcoop@yahoo.com.ph

Cafe Amadeo Development Cooperative was established under the Cooperative

Development Authority Registry No. LGA-5363 on June 28, 2002 in an attempt to revive
the coffee industry of the town. Aimed at affording its people a new major source of
livelihood and income, it was able to gain strong support from the Municipal
Government of Amadeo and then governor of Cavite, Hon. Ireneo Ayong S. Maliksi. In
April 19, 2002, it got greater boosts upon joining the PAHIMIS, Amadeos Unique
Thanksgiving

Coffee

Festival

where

then

president

Gloria

Macapagal-Arroyo

launchedKape Isla.
With 20 original founding members composed mostly of coffee millers, traders,
producers and farmers engaged in selling of premium green coffee beans, it is now
involved in the massive processing, promotion, distribution, repacking, and marketing of
especially blended brewed coffee from the area for domestic and export market.
Cafe

Amadeo

Development

Cooperative boasts

of

the

finest Robusta, Arabica,Liberica and Excelsa green beans which make up their own
Pahimis and Premium Blends. Roasted to provide an authentic flavor and stimulating
aroma, they are blends that can only be produced by the coffee masters of upland
Cavite and a perfect representation of Philippine Coffee quality.

The
Countrys Leading Cooperative Producer and Distributor of Quality Coffee.

We strive to provide outstanding customer satisfaction from coffee seed to the

cup. Our business is built on commitment to give simply the best and to cater to the
distinctive taste of coffee loving people by serving them the premium specialty coffee.

Pahimis Blend

Jute Bag

Foil

Ordinary

Premium Blend

Paper Box

Pack

Plastic

1kl

320

300

295

454g

165

155

150

225g

105

95

90

1kl

295

275

270

454g

150

140

135

225g

90

80

75

1kl

275

255

250

454g

145

135

130

225g

85

75

70

1kl

295

275

270

454g

155

145

140

225g

90

80

75

1kl

440

420

415

454g

230

220

215

225g

125

115

110

Robusta-Arabica

Cavite Pure

Pure Robusta (G.)

Pure Excelsa (G.)

Pure Arabica (G.)

*Prices are subject to change without prior notice

*Delivery charges not included

Pure Excelsa a variety with a distinct pharmacopical tastes which Arabs prefer to
use a high degree in blend of roasted ground coffee and spices to produce their desired
espresso

blend.

Pure Arabica taste very well, has good fragrance and aroma, full bodied and yet has
medium

acidity.

Pure Robusta main ingredient in the production of soluble or instant coffee.

Pure Liberica with very strong taste and flavor. Also known as Barako.

Pahimis Blend our BEST SELLER and an exclusive blend of finest four varieties of
Robusta, Arabica, Excelsa and Liberica roasted to provide an authentic flavor and
aroma.

Premium Blend - especially popular abroad; blend of Robusta, Arabica Excelsa.

Use one tablespoon Caf Amadeo for a cup proportion.
Adjust the desired taste.
Use fresh water in coffee maker.
Store in a cool, dark, dry airtight container.
Coffee, a beverage unknown to the Graeco-Roman world is reputed to have originated
by Abissinia, the former Ethiopia. The word coffee may have been derived from the
Ethiopian word keffa. It was in Arabia where the first coffee was cultivated. Coffee has
been around for more than 1000 years.

1200A.D. The Arabs dried coffee berries and boiled them in water to make a hot
beverage.

13th Century The practice of extracting the beans and roasting them was introduced.

14th Century Arab merchants penetrated the secluded Kingdom of Kaffa in Southern
Ethiopia, discovered the seeds, spirited them out and introduced them to the Yemen
highlands.

16th Century Coffee was prepared by pulvering the roasted beans and combining the
powder with boiling water.

1615 Coffe came to Europe when the first shipment arrived in Venice. The first
Western Coffee House opened 30 years later.

1640 Coffee debuted in Marseilles, France.

1644 Coffee drinking spread to Holland and the rest of France.

1670 Coffee was brought to America by the Dutch. As in England, coffee houses
quickly sprouted.

1740 Coffee growing started in the Philippines. A Franciscan Friar brought three
gantas of Arabian coffee beans and planted these at the convents backyard.
1876 Arabica coffee was cultivated in Gitnang Pulo, a sitio of Silang, town in upland
Cavite. Gitnang Pulo was converted into a town known as Amadeo in 1872 in honor of
King Amadeo of Spain.

1880 The Philippines became the fourth largest exporter in the world.

1906 Brazil, already the largest coffee producer at the time, overproduced and had to
destroy part of its harvest to prevent a further decline in prices. The Brazilian Coffee
Institute sought the expertise of the Swiss firm Nestle on how to develop a better coffee
preparation. One that would preserve the flavor of coffee while being soluble in hot
water.

1938 The first industrial plant was set on Orpe, Switzerland. This marked the
commercial introduction of instant coffee to the public.

1950 Commonwealth Foods Inc., began manufacture of instant/soluble/roasted

ground coffee.

1954 The Retail Trade Law nationalizing retail business was passed. Chinese
capitalist shifted to coffee trading.

1961 National products Inc., now Nestle, began manufacture of Instant Coffee in the
Philippines.

1976 The Philippines officially became a member of the International Coffee

Organization. For its part, the Philippines has committed to its share to help maintain
the international cooperation achieved through the International Coffee Organization.
In the late 90s worlds coffee prices decline to a low level demoralizing the
farmers. Farmers stated to cut down their coffee trees and converted to other cash
crops. Some were converted to housing subdivision and other industrial parks.
2002 The President of the Philippines Gloria Macapagal-Arroyo during the First 1st
Pahimis Coffee Festival, ordered the creation of the Presidential Task Force on Coffee
Rehabilitation which eventually became the National Coffee Development Board.

Amadeo gaining the recognition as the Coffee Town of the Philippines.

A National Coffee Rehabilitation and Fertilization Program were launched

covering the 22 Provinces. Cavite was designated as the lead province and Amadeo as
the model Local Government Unit for the coffee program.

Caf Amadeo Development Cooperative A Success Story

With the revitalization of the industry, Mayor OJ Ambagan of amadeo has

simultaneously initiated activities within his jurisdiction. The municipality has hosted the

Pahimis Festivals and along with this has similarly initiated the formation of the Caf
Amadeo Development Cooperative in June 28, 2002 to actively engage in coffee beans
trading and ground coffee processing. It was organized with 15 active big
farmers/millers and boasts of a current capital of about P2M. It was able to corner a
monthly order of about P 80, 000 sales of brewed coffee with the provincial
government. It

has

also

been

actively

participating

in

various

local

fairs/expositions. Last year alone, the cooperative has generated total sales of
P2.9M. The cooperative has been a potent force in the marketing of the Amadeo coffee
beans to Nestle Philippines, Universal Robina Corp., Figaro to name a few big coffee
bean users. It has also set up five (5) market outlets, three (3) in Cavite, one (1)
in Paraaque City and lately in San Fernando, Pampanga. To this day, the cooperative
is fast growing and keeping to its mission of continually supplying best grade coffee
beans and ground coffee for the entire benefit of Amadeo Coffee farmers (4,560) in
general and of its members in particular.

It is also noteworthy to mention the success of an individual enterprise (RA

Enterprises) that has recently penetrated the US Market with its beans and ground
coffee. Owned and managed by Ms. Olive Arias also of Amadeo.

Additionally, Adopt a Coffee Farm Program has been launched where

a Manila based investor is leased a hectare farm lot for P10, 000 a year and plant this
with coffee trees. There were about 40 who initially enrolled in the program and still
growing. A total investment from this is about P400, 000.00.

Amadeo indeed has gone a long way as a model coffee village of the province.

Gantt Chart
B2B Project Plan

Durati
on

Initiate B2B Project

Discuss and review proposal to
partners
Determine the Scopes and
Limitation
Consultation
Planning B2B Project

15
Days
5Days
10
Days

Determining process and

procedures

30
Days

Design Communation
Campaign

30
Days

Meeting with the BOD for

approval

15
Days

Mont
h1

Mont
h2

Mont
h3

Mont
h4

Mont
h5

Mont
h6

Mont
h7

Mont
h8

M
h

Implementation of the B2B

Project
Circulating of the
products
Monitoring the project

30
days
4
Month
s

Review the impact of the

Project
Acquire Feedback
Evaluate the feedback
Report the feedback to BOD
B2B Project Improvements

10
Days
10
Days
10
Days
10
Days

ACTIVITY CHART

1. Initiate B2B Project

Present to Partners
meeting with the partners for
the project
Reviewing and discussion of
the desired b2b project
proposal with the partners.
Determining scopes and limits
Assumptions for the b2b
project plan
Creating a hypothesis about
the plan
determining about the
boundaries of the plan or who
will benefit the project
Identify the risks of the project
Consultation
Consulting some business
advisers about the proposal
project

2. Planning of B2B Project

Plan

Determining Process and

Procedures
Establishing the step by step
procedures.
Illustrating the flow chart about
operations of business project
Identify the target customer of
the products.
Design Communication
Campaign
Make a communication system
align with the business project
to communicate with the
partners.
Discuss to its member the new
business to patronize new line
of products.
Meeting with the BOD and

3. Implementation of B2b
Project

4. Review and Evaluation of

the project

other officers for Approval

Discuss the final output of the
project plan with the BOD and
officers of the cooperative,
including:
The impact of the project to
cooperatives and its members
The benefits of the said project
to its partner coops.
Contributions of the Project
plan -the effects of it to the
cooperative
The budget for this project
The approval of the BOD
Circulating the Products
Delivering of the barter
products to the partner
cooperatives.
Send notice or message to
members for the new products.
Communicate to its partners
for the delivery.
Monitoring the products
Observation of the new project
by conducting surveys to those
who patronize it.
Checking the inventory or sales
in line with the barter
commodities
Acquire Feedbacks
Collection of feedbacks from
the members about the project.
Conduct another survey to the
BOD and officers of the coop.
Evaluate the impact of the
project
Assess the result of the survey
for further result.
Report the Feedback to BOD
and officers
Meeting with the BOD and

5. B2B Project
Improvements

Officers
Report the output of the project
in the cooperative.
Discuss the Evaluation towards
the product
Discuss the impact made by
the project to its members.
Success of the project comes
from improving its
implementation.
Creating better way of delivery
and communication.
Having new partner coops.

IMPACT OF THE PROJECT

Why cooperative should participate or involved in B2B project?
As cooperative is an entity with the same characteristics of business the
cooperative could be a part of a B2B project. The cooperative can provide and
trade a products and services which the other cooperative can resell. The project
can also be a partnership of cooperatives, products harvested by the
cooperatives like farmers, dairy and agriculture can trade or sell to other
cooperatives and manufactured and resell their finish products and earn profit.
Cooperatives could also trade ideas on how to transact their products and give
satisfaction to their customers.
B2B project is a way of giving and developing relationships between
cooperatives. It is can also build trust and can commend their partner coops for
giving good job.

The main objective of this project is to have cooperation among the chosen
cooperatives to achieve the 6th principle Cooperation Among Cooperatives.
Through this we can achieve the primary goal of all the cooperatives, which is to
meet the economic, social and cultural needs of the members. Moreover, with the
cooperation within the selected cooperative we can build a community and
partnership between them that later can help them in particular situation.

TIME SCHEDULE PER ACTIVITIES

Selling Hours
-

The selling category consists of activities designed to seek out new business.
Sales reps need to find, cultivate and maintain relationships with new prospects
and existing clients. By keeping the funnel full of prospects, they can maintain a
steady stream of business. Employees track such activities as marketing, cold
calls, calls to existing customers, sales visits, presentations and to a lesser

degree, writing articles, books or columns.

On average, these add up to 10.8 hours per week. This is quite surprising to
sales managers who expect their reps to be actively selling for at least 50% of
the time. The reality though, is that other activities outlined in this report need to
be done, and they infringe on selling time.

Order Processing

The order-processing category includes generating quotes, pricing repeat orders,

entering orders in the system, handling stock orders, and assisting with designing
the order. This category also includes client administration activities. These are
not direct service activities, but are necessary to support the account. They

include setting up accounts, filling out forms, and writing reports on customers.
All together, these activities take 6.1 hours per week. These are difficult to
delegate. However, where repeat orders are involved, many sales reps can
increase their efficiency by giving these to an inside or telesales rep.

RECOMMENDATIONS

Product messaging to B2B audiences is challenging to get right. Marketers need to

convey complex messages in simple but compelling terms. Here are five
recommendations that will help you in the initial stages of message development, when
decisions about message content, benefits and value propositions are made:
-

Understand your audience

Focus your message
Make it credible

Understand your audience

-

Well start with a piece of simple advice that yields powerful results. Doing the
homework up front to understand the target audience translates into messages
that resonate and make the audience feel that your offering is relevant. We are
not suggesting that one message must convey all of these themes they are
simply examples of ways to demonstrate an understanding of your audience.
When people see a message that does not relate to their world, they make

assumptions. For example, they assume the offering is designed for companies
in other verticals or of a different size.
Focus your message.
-

The most effective product messages focus on a single audience or type of

decision maker. B2B decisions typically involve multiple decision makers, and
although they work for the same organizations, these audiences experience
different priorities and pains and become involved at different points in the
decision process. Spreading one message across multiple audiences dilutes its
effectiveness and the message resonates with no one. A message focused on a
single audience or decision maker, on the other hand, enables you to speak to
the themes that resonate most with that audience.

Make it credible
-

All B2B marketers know that credibility is essential to effective product

messaging. Being credible is difficult, though: business buyers are dubious of
claims regarding ease of use, cost savings and revenues gained. Its not that
they dont value these attributes; they do and are willing to pay for them.
However, in their experience they have found a gap between what the message

claims and what the offer delivers.

Credibility is as important for fear tactics as it is for claims about benefits. Fear,
uncertainty, and doubt have their place in B2B marketing. But when vendors talk
about a problem as if it is a crisis and the audience sees the problem as merely
an annoyance, there is a credibility gap.

Doing your homework at step one to make sure you understand your audience
and focusing on your audience as recommended in step two provide a baseline
of credibility to your message: the audience is more likely to give you the benefit
of the doubt regarding your claim if it believes you know what you are talking
about.

CONCLUSION
While starting a B2B business, you should not jump into the conclusion that will give you
great financial freedom within a short time. You must know th truth and reality behind th
concept and go for it. Like any other business that requires hard work, dedication and
determination to be successful, it is applicable in the case of starting a B2B business.
A B2B business is something that you can start even while you are associated with
something else. Find companies who are willing to join B2B business.
The customer experience has become much more important to B2B companies.
Creating and delivering the right customer experience is not easy. It requires companies
to identify a strong customer experience leader who has the authority to make things
happen, implement a new customer model and capabilities and embed the customer
experience in everything the company does all of which takes time, effort, and money

REFERENCES
Business 2 Business (B2B) Concept
As discussed in Prof. Hilda F. San Gabriel Class on Project Development,
Management and Evaluation. January 23, 2015
Davies, G. (2012, May 25). Nature and Roles of Money and Banks. Retrieved February
26, 2015, from https://betternature.wordpress.com/2012/05/25/nature-and-rolesof-money-and-banks/
Synovus Financial Corp. (2012). Barter System - Benefits of Bartering | Barter
Exchanges - When to Barter . Retrieved February 26, 2015, from Synovus Bank
Business Library:
http://www.synovusbank.sbresources.com/SBR_template.cfm?DocNumber=PL0
8_0120.htm
http://www.cooperativegrocer.coop/articles/2004-01-09/cooperation-amongcooperatives
http://budgeting.thenest.com/advantages-disadvantages-bartering-22696.html
http://www.investopedia.com/terms/b/barter.asp
http://philexportcavite.com/directory/food/muscovado-de-magallanes/

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