December 7, 2015

Value chain analysis (VCA) is one of the scientific approaches being used by the Philippine Rural Development Project (PRDP) to promote value-creation and rational distribution of benefits among actors involved in the chain.

For the last two years, the PRDP Bicol I-PLAN team has been conducting studies on the input providers, producers, processors, and traders as part of the VCA and Provincial Commodity Investment Plan (PCIP) preparation. As a preparatory activity for their conduct of market studies, the Bicol I-PLAN team conducted an Educational Visit and Learning Exchange to Region VII, where majority of the markets for seaweeds, coconut shell charcoal and mango are located.

Along with the Provincial Project Management and Implementation Units (PPMIUs) of Masbate, Sorsogon, and Catanduanes, the Bicol I-PLAN team headed by Planning Specialist Mary Ann R. Cuya traveled to Cebu City and Bohol on December 1-5, 2015 to gain insights on how to improve its respective commodities in terms of local and export markets. The activity also aimed to provide the team with technical knowledge and skills on investment opportunities which can be proposed in the next planning process for the particular priority commodities and products of the said provinces.

The team conducted a focus group discussion (FGD) and tour at the Profood International Corp., a company based in Mandaue City, Cebu that produces dried fruit, preserves puddings and other processed fruit products. The team was oriented about the company’s processing technologies at the repack and quality area where manual checking and mechanized color sorting of mangoes are being done as well as the dry production area where washing, peeling, slicing, pasteurization, oven drying, and sugar powder coating are being undertaken. According to Profood International Corp. Administrative Secretary Stephanie Sarmiento, the company processes 950 tons of fresh fruits like coconut, pineapple and mango daily during the peak season and provides employment to about 6,000 workers in its four plants based in Bulacan, Iloilo, Cebu and Davao.

Profood International Corp. exports processed tropical fruit products to the U.S., Canada and in several Asian and European countries. Sarmiento shared the company’s zero waste management practices such as using mango seeds as raw materials in furniture making and using mango peels in feed production. The company also utilizes mango seeds and peels as fuel for steam generators.

The I-PLAN team also visited the office of the Philippine Coconut Authority (PCA) in Mandaue City, Cebu wherein Agriculturist I Lilibeth A. Triumfo and Agriculturist II Johndom B. Domogtoy discussed the factors affecting the coconut industry in the region including quality control, demand, and intensive labor required. Domogtoy also provided an overview of the coconut shell charcoal industry in the region and affirmed the demand for coconut shell charcoal particularly in Cebu. He mentioned that coconut shell charcoal in the province is being sourced from Zamboanga, Misamis, Caraga, and Leyte because majority of the locals opt to sell the coconut shell than processing them into coconut shell charcoal. Moreover, they highlighted PCA’s Kasaganahan Sa Niyugan ay Kaunlaran ng Bayan (KAANIB) program, aimed at promoting coconut-based farming system as an agribusiness opportunity.

To explore investment opportunities for seaweeds, the team conferred with Maximo A. Ricohermoso, general manager of MCPI Corp. and president of Datingbayan Foundation Inc. based in Brgy. Tugbongan, Consolacion in Cebu, which manufactures carrageenan for various industries worldwide. Carrageenan is known as an effective dessert gel binder, hotdog and sausage binder, ice cream stabilizer, and bread and pasta binder. The company also produces the seaweed-based fertilizer Algafer LPF Plus which is being exported to Indonesia, South Australia, U.S., Malaysia, and South Africa.

Ricohermoso, who is also the chairman of the Seaweed Industry Association of the Philippines (SIAP), advised the local government unit (LGU) representatives to organize the farmers in order to guarantee their volume of production and enable them to avail of financing support from government and private entities. He also encouraged teaching ordinary households to grow seaweeds as he stressed the importance of hygienic seaweed-drying to demand a better price.

“PRDP must help local seaweed farmers to access funds from other agencies like the Department of Science and Technology that provide solar drying systems and Department of Trade and Industry that finances common service facilities,” he added.

Furthermore, Ricohermoso shared value-adding ideas for seaweeds like producing seaweed crackers, seaweed chips, seaweed noodles and seaweed candies which require less input and equipment.

In Buenavista, Bohol, the I-PLAN team held a FGD with the Nagkahiusang Mananagat sa Asinan (NAMASIN), the proponent group of PRDP’s Seaweed Production and Marketing small livelihood project. NAMASIN Secretary Arthur L. Damgo shared how the organization was established with the support from the Bureau of Fisheries and Aquatic Resources (BFAR), Asian Development Bank (ADB), and World Bank. Damgo also demonstrated the organization’s seaweed farming method.

Municipal Agricultural Officer of Buenavista Lino M. Divinagracia cited NAMASIN’s spirit of volunteerism as one of the keys to its success as an organization. He also provided an overview of the seaweed industry in Bohol.

According to Cuya, the Educational Visit and Learning Exchange gave insights on how Bicol would cope with the demands and how to improve its commodities to meet the standards of the local and export market.

“Although we cannot compete with these big companies, at least we gained ideas on how to increase volume, start good organizations, and encourage them to produce more,” she said.

PPMIU-Masbate I-PLAN Component Head Dr. Adonis Dilao said that the educational visit and learning exchange allowed him to discover new ideas on the usage of the commodity. He plans to re-echo the knowledge gained at the activity to the Provincial Agriculturist to promote rural enterprises particularly for women in conflict-affected areas in Masbate.

“If we want to conceptualize products, kailangan ng innovations and ideas to discover new usage (If we want to conceptualize products, innovations and ideas to discover new usage are necessary),” he said.

Sorsogon Provincial Agriculturist Maria Teresa V. Destura said that the activity was a learning experience and a challenge for everyone. “It is a challenge for the clientele especially those who will be chosen or identified as proponent group to be able to compete with similar multinationals. On the part of the LGU, it is a challenge how we are going to support them through PRDP from the production stage to post-production, processing and marketing levels,” she added.

PPMIU-Catanduanes I-PLAN Component Head Romeo Aquino said that the activity gave him an idea about the management structure, how to start and sustain an SLP. “Marami kaming nakitang bago at best practices na pwedeng pag-aralan and pwedeng i-apply sa amin (We saw new ideas and best practices that we could study and apply in our province),” he added.

Bicol I-PLAN is planning to conduct an inter-province educational visit and learning exchange in 2016 to study the provinces’ comparative advantages and determine how they will complement and improve their products.

PRDP is a six-year project being implemented by the Department of Agriculture that aims to establish a modern, inclusive, value-chain oriented and climate-resilient agriculture and fisheries sector. (Annielyn L. Baleza, I-SUPPORT InfoACE Unit, DA-RAFIS 5)