Naga, Zamboanga Sibugay — The provincial government here proposed for a P68-million enterprise development project under the new Philippine Rural Development Project (PRDP) that is expected to enhance the market competitiveness of the rubber produced in this region.

Rubber has been identified as a priority commodity for development for Region 9 under PRDP.

Also proposed is an additional P20.5-million funding for infrastructure projects like farm-to-market roads that would bring production areas closer to markets.

The project was submitted in partnership with the proponent group, the Philippine Pioneer Rubber Production Corporation (PPRPC), which is composed of seven clusters of farmer cooperatives, individual rubber farmers and private traders in 13 municipalities of Zamboanga Sibugay.

The proponent group is looking at Yokohama Tires, whose Philippine office is based in Clark, and other international processors as target market.

“We hope to expand the potentials of the rubber industry in this region by upgrading the necessary facility and equipment needed to increase production capacity as well as engage the participation of more rubber farmers,” said PRDP Mindanao cluster director Lealyn Ramos.

She said that the proponent group is expected to produce bigger volume of semi-processed rubber and command better price by consolidating the production.

According to the proposal, “since the enterprise will only be engaged in processing and marketing, a 66 percent return in price difference and dividends will go back to members and suppliers.”

“But the enterprise must be able to meet the strict quality requirements demanded by buyers particularly in passing the ISO 2000 standards,” Ramos added.

The Zamboanga region accounts for 43 percent of rubber production share in the country, with Zamboanga Sibugay sharing 75 percent of the region’s production, 2012 BAS data shows.

Before coming up with the business plans, LGUs and DA regional offices conduct Provincial Commodity Investment Plans (PCIP) to identify priority commodities for development.

A proponent group will implement the enterprise project, which will be funded under PRDP’s Investments in Rural Enterprises and Agriculture and Fisheries Productivity or I-REAP component.

“We are looking at upgrading groups that are ready to scale up their business instead of start-ups or assembling groups to do enterprise,” said PRDP national deputy program director Arnel De Mesa.

Under I-REAP, PRDP will assist the proponent group, in engaging into marketing agreement contracts with institutional buyers as well as other marketing activities.

If approved, the enterprise development project will upgrade the current processing plant and establish a crumb rubber testing laboratory to meet the ISO 2000 quality standards.

Under I-REAP, PRDP will also provide technology and information support on rubber-based farming system through dissemination of materials on good planting practices and success stories. (Jay M. Rosas, DA-MRDP)

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