The importance of clustering is to establish familiarity and coordination among all the players especially the suppliers and the dealers in every business chain. This is done to understand the supply and demand, production timing, the price and quality standards of certain commodity, and to ensure everyone has the opportunity to access the market.
Clustering is the job of the Community Development Officer. The process involves participation of the Local Government units and other government agencies to design an effective structure that correlates the importance of each function in the business chain. The coop has to identify volunteer leader per sector. In this case the priority sectors are the farmers and business sectors. Clusters are categorized according to their specialization in a particular sector, by their focus on specific geographic areas, or by targeting selected customer needs or market segments. One cluster will be composed of 10-15 members with cluster leader and officers’ in-charge in marketing, supplies, recording and other cluster function. Members in the cluster could be an existing business owner or farmer or a new members desire to get involved in the coop. In every sector, there must be sector leader-volunteer.
Cluster leader volunteers shall meet regularly where the Sector leader is required to attend together with the Community Development Officer. The cluster meeting will be the venue for business planning, coordination and identifying areas for improvements. There must be incentives for the clusters for them to be encouraged in participating meetings and other activities.