Batanes Prepares Four Micro Enterprise Proposals

Date Published: September 10, 2018

In an attempt to firm up the four proposed enterprises in Batanes, staff from the NPCO, PSO, and RPCO2 visited the archipelago province on April 22-28, 2018. Aside from the technical assistance offered by the joint team, the members also looked into the viability of these enterprises to be funded under the Philippine Rural Development Project (PRDP).

The panel reviewed the Beef Cattle Production and Marketing Enterprise proposed by Ivana Payaman Cattle Raisers Association (IPCRA); Sweet Potato “Wakay” Production and Marketing Enterprise by Marginal Farmers Multi-purpose Cooperative (MFMC) of Basco, Batanes; Garlic Production and Marketing Enterprise proposed by Uyugan Garlic Producers Association (UGPA) and Garlic Seed Production and Marketing Enterprise by Itbayat Garlic Producers Association (IGPA).

In Batanes, five to seven heads of cattle are slaughtered daily. However, the supply of beef is not sufficient with the beef cattle production in the province is at backyard level with the raising period of up to 2 to 4 years to reach slaughter weight.  With the introduction of the technology on silage preparation, efficient feeding and caring of cattle, the rearing period from yearling to slaughter weight will be reduced by 2 months.

Beef cattle is eyed by the proponent group to be a thriving venture by the introduction of a transparent and competitive farm gate pricing of beef cattle in the locality. This will provide a higher income to cattle raisers, and break the old-age tradition of visual estimates.   The need to establish a grazing facility and purchase of transportation vehicle are necessary to fully develop the operation of the enterprise.

 

Beef Cattle as an enterprise

The enterprise will be offering premium and choice cuts; and other parts which include head, short ribs, chuck ribs, shank, oyster blade, skin, innards, etc.  It will be deriving its income from the sale of these products and the price markup per kilo as a result of the direct marketing efforts of the association with its target markets bound by marketing agreements.

The buying price for beef cattle (live weight) is at Php105.00/kilogram.  The association projects to purchase 336 heads for the 1st year to 3rd year of operations. 280 heads will be slaughtered for the 1st year, and 336 heads for the 2nd and 3rd year.  The association will market the product with prices from 220 to 200 per kilo for premium and choice cuts; and 190 to 100 per kilo for other parts.   The association will adopt quality control measures to attain higher prices for the product. Thus, farmer-members of the association shall be trained in the adoption of Good Animal Husbandry Practices (GAHP) for cattle beef.

For forage and silage production, supply agreements will be forged with 35 farmer-members who have their own small scale forage areas.  The association will buy forage (napier, sorghum, and other grasses) at Php 1.35 per kilo and (silage) at P0.35 per kilo.  The association is also willing to buy these inputs from non-member farmers. At present, the association has 35 members and all of them are directly involved in beef cattle raising.

To start its operation, the IPCRA proposed for the provision of yearlings to farmer-members, procurement of production equipment, training on GAHP, procurement of marketing facilities, and construction of an edifice for cattle fattening. The Beef Cattle Production and Marketing Enterprise has a total investment cost of Php4,667,210.00.

 

“Wakay ”-from staple food to a more stable product

The Marginal Farmers Multi-purpose Cooperative is hopeful in venturing into sweet potato production and marketing as  its enterprise. Known as “wakay” in Batanes, or camote, (kamotit in the mainland) is the staple food of the Ivatans way back from the early centuries and it is also considered as a survival crop when there is a strong typhoon.

Furthermore, sweet potato is among the priority commodities of the province seen  as a promising and viable agri-business industry that could generate employment and livelihood for the farmers. As of 2015, a total of 92 hectares were planted with sweet potato.  Notably, it is a crop that has potential for increasing the income of the Ivatans most especially those belonging to class D families.

Through the enterprise, MFMPC will buy sweet potato produced by its farmer-members. The assured production area of the cooperative will ensure supply of sweet potato to its market; Also, the cooperative will procure from non-member farmers upon establishment of an additional market.

The interventions for improving sweet potato production shall be handled and funded by the Province of Batanes in collaboration with the Department of Agriculture, Batanes Experiment Station (BES).

The enterprise will be offering two (2) products; sweet potato (raw) and sweet potato chips. Target variety to be produced is Naypitang. For the first year of project operation, the Cooperative is expected to market a total volume of 117.936 MT of which 100.245 MT as raw and 63,685 packs consist of sweet potato chips. It will be deriving its income from the sale of these two products and the price mark-up per kilo as a result of the direct marketing efforts of the cooperative creating a sustainable market through the forging of marketing agreements.

For its operation to be stable, the MFMC, with 55 indigenous people (IPs) as members, proposed for the provision of farm inputs, production equipment, marketing facilities and construction of warehouse which will serve as storage and processing facility. This enterprise amounts  to Php2,018,442.00.

 

Itbayat white

All municipalities in Batanes grow garlic but Itbayat is by far the highest producer in terms of volume getting the 75% of the total production of the province. Itbayat Garlic Producers Association (IGPA) will buy garlic produced by its farmer-members. The assured production area of the association will ensure supply of garlic to its markets. Also, the association will procure from non-member farmers upon establishment of an additional market.

The enterprise will be offering dried garlic seed and garlic for condiment. Target varieties to be produced is the Itbayat White. For the first year of project operation, it is expected to market a total volume of 43.130 MT of dried garlic.

The enterprise, which amounts to Php3,600,025.00 will provide an opportunity for the garlic farmers to improve their farming activities by buying garlic produced by farmers and adopting Good Agricultural Practices (GAP). The interventions for improving garlic production shall be handled and funded by the Province of Batanes in collaboration with the Department of Agriculture, Batanes Experiment Station (BES).

 

Batanes Red

Unlike IGPA, Uyugan Garlic Producers Association will be venturing into garlic production, processing, and marketing of the Batanes Red variety. Also, the enterprise will be offering dried garlic. It will be deriving its income from the sale of the product and the price markup per kilo as a result of the direct marketing efforts of the association creating a sustainable market by forging marketing agreements with the target markets.

Tractor services will also be offered for a fee depending on the area to be served and the distance of the point of product destination, respectively. These will serve as sources of additional revenue of the enterprise. (Ferdinand N. Cortez, RPCO2 InfoACE)

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