Friday, December 11, 2009

In Pangasinan, there’s now a town of milk and money



By Yolanda Sotelo
Inquirer Northern Luzon

LAOAC, Pangasinan – Three tall structures at a Maraboc village farm here always catch the attention of motorists.

These are newly constructed silos where cattle feed, mostly corn, are stored.

Around the towering structures are corrals where 360 cows imported from New Zealand have been temporarily herded.

The compound seems out-of-place on this flat palay plain, but a Pangasinan congressman said it proclaimed that this sleepy town would soon become the dairy capital of Northern Luzon.

Soon, selected farmers will be getting New Zealand cows, which they will feed and milk until they can produce enough supply to sell to neighboring towns, said Representative Mark Cojuangco.

The proposed dairy trade is a congressional project that will not disrupt the town’s thriving rice and corn production, he said.

Milk may become a secondary trade for farmers still struggling to earn a living.

The project should be able to produce enough milk in two to three months to develop a thriving retail market for farmers, Cojuangco said.

It took the district five years to raise capital.

Cojuangco said: “Every year, I saved some money [from my countryside development fund] and I asked [allocations] also from the senators, which I deposited [in] the National Dairy Authority. We bought land in Laoac where we established the silos.”

The National Dairy Authority is the agency tasked to execute the Laoac dairy program.

Last year, the government tried to jumpstart the program by distributing cattle to farmers as part of an alternative livelihood campaign. But the animals were immediately recalled when 10 cows died.

This time, the government will target rice or corn farmers who are unable to make their fields productive. They will form the first batch of dairy farmers in Laoac, the congressman said.

These farmers would have to suspend corn production and prioritize their cattle in order to make the project work, he said.

The municipal agriculture office of Laoac is currently surveying the town’s farming community to determine who will benefit from the program.

Cojuangco said that under the project, each farmer would be assigned five milking cows, from which he could earn up to P30,000 in monthly profit.

“We want those taking part in the program to focus on dairy production only, nothing else. We observed that when the recipient has other sources of income, the project may fail because he or she is not [devoted to] the project … which is why we are looking for beneficiaries who will commit to dairy production only,” he said.

Under the program, there will be a centralized source of feed which will be stored in the silos. The feed will be composed mainly of corn plant tops collected for free during “tadaw” – the season when farmers harvest corn.

Because the silos are sealed, the chopped corn plants are deprived of oxygen, enabling the stock to last for as long as two years

Cows will never be deprived of food even during the dry months.

“Cows eat a lot – from 40 to 60 kilos a day. So we really need to ensure availability of feeds or they will not produce milk,” Cojuangco said.

The chopped corn stalks are mixed with minerals, protein and vitamins to produce feeds called TMR, or totally mixed ration.

The TMR, which costs P1 a kilo, will be rationed to farmers twice a day.

“We will also collect milk twice a day,” Cojuangco said.

The farmers earn by selling milk to a central sterilization and processing plant at P20 a liter.

Since a cow can produce an average of eight liters of milk a day, farmers may expect up to P800 a day.

The sterilization equipment had already been shipped to Maraboc village, said Philip Villanueva, the dairy project manager.

“We are just waiting for the technical people to commission it,” he said.

For the moment, farmers who avail themselves of the cows may pasteurize the milk manually, purely for household consumption.

If 300 cows produce 10 liters of milk a day, 3,000 liters of fresh milk may be available for the market, Cojuangco said.

The plan is to put up more silos to serve a minimum of 1,000 heads of cow to be dispersed in Pangasinan’s fifth district.

“We hope to get some of the fund for the district. Milk is really nutritious and is much better than rice and noodles,” he said.

Wednesday, November 11, 2009

The Case for Coffee

 

By Margaux Salcedo
Philippine Daily Inquirer

CITY folk have it so easy. Most everything you’d want to eat can be found at the grocery store or in a restaurant. What we sometimes take for granted is that the process behind the finished product can be rather long and tedious.

Take coffee. When you want coffee, you can easily go to a Starbucks or a Figaro outlet for a cup of your favorite latte, or grab some beans at the grocery store.

But for Robert Francisco, it’s more than just ordering “tall, grande or venti.” When his family decided to go into the business of cafes, he decided to get into the business of roasting. Then from exclusively roasting for the family’s chain of cafes, he expanded his business to supply restaurants, resorts and hotels. In the new millennium, he tied up with Boyd’s coffee and today they make coffee for select clients. (Such snobs, he-he. But I guess since we’ll never taste this select coffee, we’ll never miss it!)

I first heard about Robert Francisco when his cousin Joanna, now a freelance editor/writer, invited me to view his book “A Coffee Journal.” It’s an interesting read as it documents the varieties of Philippine coffee from north to south. He takes it a step further by noting distinguishing attitudes towards coffee.

For example, he shared over a phone interview, in the north they drink only the brewed coffee they produce, never three-in-one; but in the south, all the produce is sold, then they buy three-in-one coffee from the store.

Robert says he tries to help the Philippine coffee industry in his own way. He is currently sourcing beans from Mt. Kitanlad in Cagayan de Oro, flying to and from the province himself. I asked if it would be possible for Philippine coffee such as this to achieve Blue Mountain status (so we can get back at the Japs and charge P1,000 per cup!). Unfortunately, because of the lack of supply of Philippine coffee, what some traders do is get cheap coffee from various sources around the world and sell it as “Philippine coffee.”

“It’s sad more than bad, actually,” lamented Robert. “There is a shortage of 70 million kilos of coffee based on annual consumption of 120 million per year. That is why even if I would like to use only Philippine coffee, I am forced to use coffee from other countries because supply does not meet demand.”

This reflects the sad state of agriculture in the country. Another classic case of having all the natural resources on hand, yet being unable to meet demand (ooh, that rhymes).

I join Robert in his shout out to the government to help our coffee growers. “I can’t win this battle alone. I dream and I have done my share in helping the Philippine coffee industry, but the farmers and the government have to help too.” •

“A Coffee Journal.” Available at Fully Booked. For more info on Boyd’s Coffee, call tel. 746-BOYD, 746-CAFE or log on to www.boydphil.com. Or email bccpi@boydphil.com

Sunday, October 25, 2009

DA to give 53 compost facilities to farmers, LGUs

By Vicente Labro

TACLOBAN CITY, Leyte, Philippines -- The government is set to distribute 53 composting facilities worth about P18.5 million to farmers’ groups and local governments in Eastern Visayas.

Leo Cañeda, regional executive director of the Department of Agriculture said the distribution of composting facilities would be in line with the nationwide program called Tipid Abono (Save on Fertilizers) Program-Organic Fertilizer Production Project of the DA.

The program aimed to encourage farmers to use organic fertilizer as a sustainable approach to food security, income generation and poverty alleviation, especially in poor regions like Eastern Visayas, Cañeda said Friday.

He said around 120 composting facilities were earmarked for the region, with the initial 53 now ready for distribution and the rest, to be delivered here next year.

Armando Arcamo, regional coordinator of the DA's Bureau of Soils and Water Management, said the 53 composting facilities would be awarded to beneficiaries in the region during the launching of the program on Oct. 30.

He said the beneficiaries were either farmers groups or local government units, with a 100-hectare cluster in their respective areas.

Arcamo explained that some farmers’ groups sought assistance from local government units because they could not put up the counterpart - a building where the composting facilities would be installed.

"Some LGUs became interested in the program because they could use the composting facilities in their solid waste management program," he said in an interview Friday at the sidelines of the Farmers LGU-led Bantay Peste consultative meeting here.

The project beneficiaries are those in areas where the average yield is below the national average of 3.8 metric tons per hectare, according to Arcamo.

Of the initial 53 units, Arcamo said 25 would go to Leyte, eight to Biliran, five to Southern Leyte and the remaining 15 to the three Samar provinces.

The composting facility is composed of a shredder, compost brewer, 15 kilos of African Night Crawler compost worms, and three units of vermi-bed.

The composting facility can produce 800 kilos of shredded materials per hour or 64,000 kilos per day at eight hours of operation, which would make it appropriate for a 100-hectare-cluster, he said.

Each program package, costing P350,000 and composed of the compost facility and a training program, would be given as a grant to beneficiaries, Arcamo said.



    

Friday, September 11, 2009

Cocoa farmers find sweet spot in exports

By Riza T. Olchondra
Philippine Daily Inquirer

SINCE the 17th century, Filipinos have been comforted by treats made from local cocoa – from chocolate de batirol and champorado to chocolate cakes and candies.

Current production is only about 6,000 metric tons (MT) out of the 36,000 MT of cocoa consumed in the country per year, but local producers are on the move to share local cocoa with other markets and carve out a sweet spot in the international market.

“Few people know about it, but we have already started exporting cocoa,” Edward David, president of the Cocoa Foundation of the Philippines (Cocoaphil), told the Philippine Daily Inquirer on the sidelines of the recently-concluded Philippine Cacao Summit.

He said that a small batch (7 MT) of organically grown cocoa and a larger batch of 30 MT were sold separately to global companies just before the summit last month.

“The buyers are clamoring for more. So we are really encouraged to accelerate our efforts to increase production and improve quality control in preparation for large shipments,” David said.

David said Philippine cocoa growers wanted to stop importation, which has become pervasive since the cocoa industry thinned out in the 1990s, when farmers who got parcels of land under the Comprehensive Agrarian Reform Program failed to maintain their cocoa trees.

David believes the country can produce enough to have a surplus starting 2015.

Cocoaphil’s plan is to intercrop at least 50 million cocoa trees with coconut to produce at least 100,000 MT or $300 million worth of export-quality cocoa beans by 2015.

The global demand for cocoa beans grows at about 90,000 MT annually.

David said that the desired output can be attained if more than two million hectares of coconut land are intercropped with cocoa.

Nic Richards of Acdi-Voca, an international economic development organization helping Cocoaphil, said this would position cocoa as one of the country’s top three agricultural sectors.

David said that the cocoa industry could become a top exporter with the help of the local Department of Agriculture (DA) and its American counterpart, the USDA. Both have started talks on new cocoa technologies.

The DA’s Bureau of Agricultural Research, meanwhile, is working to establish at least 50 hectares of cocoa farms in the municipalities of Tiaong, Dolores, San Antonio, and Tagkawayan in Quezon and a two-hectare technology demonstration farm to produce 15,000 quality grafted cocoa seedlings for distribution to farmers.

With these actions, it will only be a matter of time before Philippine cocoa makes it big in the world market.

Thursday, September 10, 2009

Milking a grand venture for all its worth

By Linda Bolido
Philippine Daily Inquirer

AFTER making a name in different fields, a group of businessmen have now gotten together to venture into something completely different from what they have been doing for most of their productive lives.

Led by the son and namesake of the late President Ramon Magsaysay, the group set up the Real Fresh Dairy Farms Inc. (RFDFI) in Bay, Laguna, near the Dairy Training Research Institute (DTRI) of the University of the Philippines Los Baños, from which they learned the technology.

The farm makes Holly’s (from Holstein, the breed of the milking cows) Really Farm Fresh dairy products, such as milk, chocolate drink, kesong puti, butter, cream, mozzarella and, occasionally, yogurt.

It has developed a symbiotic relationship with DTRI. The farm uses the technology and draws from the expertise of DTRI people and has its products processed there while students get to do field work in a real working dairy enterprise.

Retirees

Half of the partners are retirees who, like former senator Ramon Magsaysay Jr., are also looking for something new and different. All of them have very little or even no previous experience at all in cattle ranching, much less dairy farming.

The partners – Magsaysay, Danilo Katigbak Dimayuga of Lipa City, Ralph Casino of Iligan City, Felipe Bince of Pangasinan, Jose Eduardo Arroyo of Pampanga, Rey David and Sofronio Larcia – got to know each other through their jobs or businesses or their wives.

For these entrepreneurs, the process of learning a new business venture is as exciting as, probably even more exciting than, the result.

Successful businessmen that they have been and are, they do expect to turn in a profit –eventually. But for this group of intrepid men, the new venture is more than just an exercise to show they still have the savvy and the smarts to succeed. It is also a practical way to promote an advocacy and help people.

Dimayuga, company president, said very few people were venturing into this business so they wanted to encourage and help farmers by introducing them to new technology to reduce reliance on imports.

The National Dairy Authority (NDA) said dairy products were the country’s second largest agricultural import after wheat. Some 99 percent of the country’s dairy requirements came from abroad. In 2007, NDA estimated total domestic dairy requirements to be about 2.635 million metric tons (MMT) and growing at about 2 percent yearly.

Dimayuga said current estimates placed total annual dairy imports at $500 million. Thus, increased local milk production will mean considerable savings in foreign exchange.

And the partners, particularly Magsaysay, would like to see Filipinos, especially the young, develop the habit of drinking milk, not just to reduce import costs but for health reasons. Magsaysay, who said milk helped him survive childhood illnesses, said it should be a basic food for Filipinos being full of nutrients.

Through the dairy farm’s produce, the partners hope more and more Filipinos will taste the true goodness of fresh milk and develop a taste for it.

Inadequate feeding

The need for new and local players in the dairy market is underscored by the NDA that said, “Despite continuing government and industry efforts to increase dairy production, Philippine milk production remains at less than 1 percent of total dairy requirements with import filling most of the supply.”

Data from the NDA showed that the country produced 13,320 metric tons of milk in 2007 but local production accounted for less than 1 percent of the total annual dairy requirement.

Although there had been an increase in the number of dairy animals, the average milking capacity per animal remained low, the NDA said, due mainly to inadequate feeding and poor animal management practices. This is why the introduction of new technology is paramount.

Bold experiment

The Real Fresh group realizes their farm, no matter how big it gets, cannot possibly reach out to everyone. So the bold experiment has other objectives. First, the partners want to demonstrate that good management can make an agricultural enterprise successful. Then, convince people they can make money from dairy farming and encourage small farmers and entrepreneurs to go into the business themselves.

Magsaysay said he and his friends wanted to test their theory that good management and efficient marketing, plus sound agricultural practices – right breed of cow, right feed, dedicated cowhands and farmers, state-of-the-art technology and competent veterinary medical support, with some private capital and assistance from the NDA could make the “learning curve” painless.

“We would like our own workers later on to start their own farms, using the technology and management skills they learn from the [RFDFI], for their own ventures,” Magsaysay said. The individual farmers could then tie up with their former employer in a cooperative or a consortium or whatever arrangement would be most practical and profitable for everyone.

The group also hopes to develop a solid customer base to be viable in three to five years. At the moment, Dimayuga said the company produces about 3,500 liters of raw milk a week, the bulk of which goes into fresh and low-fat milk. They hope to ramp up production to 8,000 liters by the end of the year.

Wednesday, September 9, 2009

In poultry lies profit

Philippine Daily Inquirer

TIMES are tough. But for some people, now is the time to set up their own business.

And if you’re in the market for a sound investment, consider joining San Miguel Foods Inc.’s (SMFI) roster of poultry contract breeders and growers who deliver to Filipinos the Magnolia Fresh Chicken.

“I’d definitely encourage any would-be investor to strongly consider becoming an SMFI poultry breeder. It has turned out to be a very good business venture for us,” says Ofel Dator, owner of Ofel’s Poultry Farm, who was recently named Luzon’s Top Contract Breeder for SMFI.

Together with her husband, Serafin Dator, Ofel began breeding chickens in 2005 with minimal capital outlay. In just four years, Ofel’s Poultry Farm is doing great business, earning well over P2.5 million a year.

Truth be told, the Dator couple chose this kind of investment for a number of reasons, foremost of which is the fact that Magnolia Fresh Chicken is one of San Miguel Food Inc.’s power brands and, therefore, it is a sure-fire investment.

The husband-and-wife team also felt that no matter what happens to the country’s economy, food companies will continue to stand firm.

In fact, even in the face of the current economic crisis, the couple is convinced that there would be no end to the need for chicken meat products and, therefore, no end to the need for their products.

The Dators also chose to become entrepreneurs since it is only through this way that they can help provide jobs for other people in their community.

“We could have gone into other kinds of business, but we wanted to contribute to the economic growth of our hometown,” explains Serafin. Their workers are their neighbors and friends.

“Furthermore,” Ofel says, “contract breeding for SMFI is a sound investment since the company takes good care of you. From the layers to the feeds, to the purchasing of your products and the ready assistance given by their Broiler Production Representatives and their Breeder Technicians, SMFI really takes care of their breeders and growers.”

The key to the success of their operations lies in the work they invest in the farm.

“Dedication, hard work, a family atmosphere and going back to the basics – these are our bywords at Ofel’s Poultry Farm,” Ofel relates. “We take no shortcuts. We get up early, rain or shine. We sleep late, rain or shine. We follow the procedures set by SMFI through their equally hardworking Breeder Technicians.”

Ofel adds that one time, during a fierce storm, their farm manager even fell through the floor of one of their poultry houses and suffered injuries. But through it all, he continued working because he didn’t want the poultry to suffer unduly, since the storm had already caused much damage to the hen houses’ roofs.

“Of course, we owe it all to San Miguel Foods Inc. Without them, we would not have been able to enjoy this kind of success,” Ofel says.

Ofel’s Poultry Farm has very good reasons to celebrate as it bagged the top spot in San Miguel Food Inc.’s Outstanding Luzon Contract Breeders Awards.

Monday, September 7, 2009

Banana chip makers bond vs cavendish invasion

By Frinston Lim
Inquirer Mindanao

TAGUM CITY, Philippines—Banana chip makers here are urging the government to intervene and put a stop to the massive expansion of Cavendish banana plantations.

Ian Neo, an executive of Four Seasons Fruits Corp. based in Apokon Village, said the continued expansion of plantations devoted to the Cavendish variety of bananas was threatening the banana chips industry, which is dependent on the Cardava (saba) variety.

Cavendish bananas are sold fresh in both the domestic and export market and apparently growing them is more profitable than the Cardava variety.

Thousands of hectares of land formerly cultivated with Cardava variety, the main ingredient for banana chips, are now being planted to Cavendish bananas, said Neo, who claimed to be also speaking on behalf of other small-time banana-chip producers.

"The supply of Cardava in the province is really affected by the expansion of Cavendish plantations that we in the industry would now try to outdo each other in capturing what remains in the local Cardava market," he said.

Data from the provincial agriculture office revealed that about 40,000 hectares of land are planted to Cavendish bananas in Davao del Norte and that the figure is increasing.

Neo said his company alone processes 30 to 60 tons of Cardava daily but sometimes his company can’t even find 20 tons.

He said this would adversely affect their product output and the supply to their markets in Europe, North America, Japan, China and Korea.

"There are times the daily supply was so low, for example below 20 tons, that we have to stop operations as expenses are higher than output," Neo said.

He said the temporary stoppage would affect the company's 250 employees.

Neo acknowledged that companies planting the Cavendish variety were quite influential but he said banana chips makers were now banding themselves together to form a "formidable lobby group."

He said that if they were one group, government officials would listen to them and they would be able to "fight back" against the "ever-expanding Cavendish plantations."

"Though demands from abroad for Philippine banana chips have dropped by 30 to 40 percent from 2007, still our local materials are very insufficient to fill the existing demand," he said.

Tagum's banana chip industry alone generates at least P1 billion in annual revenues, according to government data.

Neo said his company, with assets running to almost P70 million, pays at least half a million pesos of tax and other fees to the city government every year.

Tuesday, September 1, 2009

Wealth from worms

By Ernesto Ordoñez
Philippine Daily Inquirer

THE CHINESE character for earthworms translates as “angels of the earth.”

Cleopatra saw their value and decreed them “sacred.” Aristotle called them the “intestines of the soil.”

Charles Darwin made this telling statement: “It may be doubted whether there are many other animals which have played so important a part in the history of the world, as have these lowly, organized creatures.”

But at this time of economic and environmental crisis, the most relevant contribution of the worms to us is wealth: Both in terms of providing us cash and restoring our ecological balance.

True story

Antonio de Castro tells about his own experience in vermiculture and vermicomposting.

In 2001, he read an article on these subjects by Dr. Rafael Guerrero, then executive director of the Philippine Council on Aquatic and Marine Research Development (PCAMRD).

De Castro states: “Within two years of receiving the approximately 1 kilo of earthworms from Dr. Guerrero, we were running a 2-hectare farm using only vermicast that we produced ourselves using dayami, kakawati, acasia, carabao manure and sometimes chicken dung. The effectiveness was demonstrated in the results of the vegetables we were growing—all organic.”

He adds: “There was also very little disease or infestation on our plants. This we attributed to the plants being healthy enough to have developed very good resistance to pests and disease.”

In an Agrilink Fair in 2005, De Castro found out that the vegetable supplier of SM Supermarket had the problem of disposing of 3 to 5 tons of vegetable waste a week. De Castro made an agreement to collect her biodegradable waste for free. This relieved her of the expense of her garbage being picked up and her neighbors complaining of the odor.

Subsequently, De Castro converted this vegetable waste into wealth through his worms. He now propagates this technology to individuals and groups into solid waste management, as well as to small farmers who want to covert from chemical-based fertilizers to more natural and organic methods.

This technology has even reached the inmates of the Talisay City Jail in Cebu, which put together a presentation on vermiculture called “A Livelihood Project for the Environment” (http://wwww.bjmp.gov.ph).

Profitability

On a larger scale, how profitable is the vermiculture business? Philip Cruz states that you can get as much as a 250-percent return on six two-month vermicompost cycles. Below is the breakdown of this profitability.

Profit per 2-month cycle

Item Subtotal
Total Sales P113,880
Total Expenses P80,401
Total Profit P33,479
Total Annual Profit P200,874


(6 cycles)
ROR at 6 Production Cycles/Year 250%

It is said that teaching a person to fish is better than giving him or her a fish. In many instances, it is better to teach vermiculture to produce organic fertilizer than to give chemical fertilizer subsidies that may damage the environment and even result in more fertilizer scams.

Last June 14, I talked to Serge Montinola, a very successful agri-businessman who now spends his retirement years helping small farmers. He said that even Mapecon, a well-known pesticide company, is into vermiculture.

Truly, there is monetary wealth to be derived from worms. And environmental enhancement besides, which is specially important today as we face the dual challenge of global warming and a financial crisis.

Montinola says that if he were to choose the project that would have the best return on investment (ROI) for many small farmers, it would be vermiculture. Maybe he shares the same insight into the wealth from worms as the Chinese, Cleopatra, Aristotle and Darwin.

As the Department of Agriculture (DA) officials submit their 2010 budget proposal next June 25, we hope that they, too, share the same wisdom, complete a vermiculture master plan for the country and ask for the corresponding budget to support it.

For the rest of us, we can learn and do more regarding this subject by visiting the website: http://www.wormsphilippines.com, and possibly calling PCAMRD (0495 365578) and/or Antonio de Castro (0918 9385726).

Solon raps plan to replace abaca in money

By Leila Salaverria
Philippine Daily Inquirer

Anti-Filipino and anti-farmer.

This was the reaction of Catanduanes Rep. Joseph Santiago to a proposal by the Bangko Sentral ng Pilipinas (BSP) to replace the abaca fibers it has been using in the money it prints with polymer, a kind of plastic.

“The BSP’s plan is totally contemptible, coming at a time when the government is pushing hard to fully exploit the commercial use of abaca here and abroad in order to boost family incomes and employment in the countryside,” Santiago said in a statement.

He said that if the plan pushed through, abaca suppliers would be deprived of a major source of income. Known worldwide as Manila hemp, abaca is endemic to the Philippines.

Philippine bank notes have been printed on special paper made from abaca fibers and cotton, but the BSP is considering the use of polymer to make the notes more durable.

But Santiago contended that durability should not necessarily be the ultimate goal of the BSP, since there were other issues that should be considered.

“The Japanese build durable cars, but they don’t build cars that last forever. If their cars were built to last forever, then they would not be able to sell new cars. And Japanese auto industry workers would be all out of jobs,” he said. “The same is true with printing money on abaca fiber. It is meant to be strong and long-lasting. But they need not last forever. Otherwise, rural households that have built their lives around abaca will suffer.”

Apart from the farmers, the fiber processing and pulp manufacturing industries would also be affected if the BSP went ahead with its plan, he said. Santiago added that polymers may not also be environment-friendly since they are non-biodegradable and not the easiest thing to recycle.

Abaca is planted on 136,000 hectares in the country, with more than 82,000 farmers subsisting on its production, according to the congressman. It is the number-one product of Catanduanes, Santiago’s home province.

The fiber is also used to make rope, carpets, decorative products, furniture, tea bags, clothing, handicrafts and other special paper.