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Philippine Rural Development Project

Provincial Commodity Investment Plan (PCIP)

Province of Tarlac

P r o v i n c i a l G o v e r n m e n t o f T a r l a c

08 Fall

Philippine Rural Development Project Provincial Commodity Investment Plan (PCIP)

Table of Contents

DEVELOPMENT BACKGROUND/CONTEXT 1

GEOGRAPHICAL LOCATION 1 DEMOGRAPHICS 1 URBANIZATION PATTERN 2 POVERTY 3 ENVIRONMENT 4 CLIMATE 5 LAND 5 AGRICULTURE 10 INVESTMENT 13

DEVELOPMENT VISION AND FRAMEWORK OF THE PROVINCE 15

PRIORITY COMMODITY CHAINS DEVELOPMENT 16

COMMODITY VALUE CHAIN 1: SWEETPOTATO 17 A. COMMODITY PROFILE 17 B. PRODUCTION TRENDS 22 C. ANALYSIS AND PRIORITIZATION OF TARGET LOCATIONS OF INTERVENTIONS 28 D. INVESTMENT PLAN 30 PROVINCIAL COMMODITY INVESTMENT PLAN (PCIP) FOR SWEETPOTATO 32 PCIP MATRIX FOR SWEETPOTATO 33

INSTITUTIONAL ARRANGEMENTS FOR PRDP-FUNDING 41

IMPLEMENTATION AND SUPERVISION 41 ORGANIZATION AND MANAGEMENT 41 MONITORING AND EVALUATION 41 SAFEGUARDS 42

PDC ENDORSING THE PCIP AND THE PLGU COMMITMENT FOR BUDGET COUNTERPARTING 42

CONCLUSION 42

RECOMMENDATION 43

ANNEXES 45

List of Tables TABLE 1 POVERTY INCIDENCE ESTIMATES FOR TARLAC PROVINCE ......................................................................................... 4 TABLE 2 LAND AREAS BY MUNICIPALITY/CITY FOR TARLAC PROVINCE ................................................................................. 6 TABLE 3 MUNICIPALITY/CITY BUILT-UP AREAS OF TARLAC PROVINCE ................................................................................. 7 TABLE 4 PROVINCIAL DISTRIBUTION OF LAND AREA BY LAND USE CLASSIFICATION ........................................................... 8 TABLE 5 AREA PLANTED TO FIELD CROPS BY MUNICIPALITY AND DISTRICT, TARLAC PROVINCE ................................... 10 TABLE 6 CROPS PLANTED, PRODUCTION VOLUME AND PRODUCTION AREA, PROVINCE OF TARLAC ............................... 11 TABLE 7 PERMANENT AND COMMERCIAL CROPS IN TARLAC ................................................................................................... 12 TABLE 8 LIVESTOCK/ANIMAL FARMING IN TARLAC PROVINCE .............................................................................................. 12 TABLE 9 FOUR DEVELOPMENT AREAS FOR TARLAC PROVINCE ............................................................................................... 14 TABLE 10 INVESTMENT PROJECTS AND PREFERRED AREAS, PROVINCE OF TARLAC ........................................................... 14 TABLE 11 DEVELOPMENTAL GOALS OF TARLAC PROVINCE ..................................................................................................... 16 TABLE 12 SOME VARIETIES PLANTED IN THE REGIONS OF LUZON A CLUSTER .................................................................... 18 TABLE 13 SWEETPOTATO BY-PRODUCTS FOR INDUSTRIAL USE ............................................................................................. 21 TABLE 14 WORLD PRODUCTION OF SWEETPOTATO, 2009-2013 ........................................................................................ 22 TABLE 15 NATIONAL PRODUCTION (IN MT) OF SWEETPOTATO, 2008-2012 (BAS, 2014) ......................................... 26 TABLE 16 SWEETPOTATO PRODUCTION VOLUME, HARVESTED AREA AND YIELD PER HECTARE, 2012........................ 28 TABLE 17 STATISTICAL ANALYSIS OF THE PROVINCE BY MUNICIPALITY PER THE E-VSA TOOL ...................................... 29

List of Figures FIGURE 1 EXISTING LAND USE MAP, PROVINCE OF TARLAC ...................................................................................................... 9 FIGURE 2 VARIETIES OF SWEETPOTATO PLANTED IN LUZON A CLUSTER ............................................................................. 19 FIGURE 3 SWEETPOTATO-BASED PROCESSED FOOD PRODUCTS IN CENTRAL LUZON.......................................................... 19 FIGURE 4 PERCENTAGE BREAKDOWN OF SWEETPOTATO BY REGIONAL GROUP/CONTINENT, 2013 ............................. 23 FIGURE 5 VALUE CHAIN MAP FOR FRESH MARKET ................................................................................................................... 23 FIGURE 6 VALUE CHAIN MAP FOR FEEDS .................................................................................................................................... 24 FIGURE 7 PERCENTAGE SHARE IN AREA OF PRODUCTION BY REGION (2008-2012)........................................................ 26 FIGURE 8 TOP TEN SWEETPOTATO-PRODUCING PROVINCES, 2013 ...................................................................................... 27 FIGURE 9 E-VSA MAP FOR SWEETPOTATO ................................................................................................................................. 28

List of Annexes Annex 1 Executive Order No. 1 Reconstituting the PRDP and PPMIU Annex 2 Executive Order No. 1-A Creating the PRDP PPMIU Annex 3 Special Order No. 1 Creation of the Technical Working Group for the Implementation of the Philippine Rural Development Program (PRDP) in the Province of Tarlac Annex 4 PDC Executive Committee Resolution No. 2 Approving and Adopting the Annual Investment Program (AIP) of the Province of Tarlac for CY 2015 Annex 5 Annual Financial Requirements Annex 6 List of Cooperatives


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Provincial Government of Tarlac

Development Background/Context

Geographical Location

Tarlac, the Melting Pot of Central Luzon, is a province of a highly

multicultural mix of four distinct groups – the Kapampangans, the Ilokanos,

the Pangasinenses and the Tagalogs. Geographically, Tarlac is situated in the

Center of the Central Plains of Luzon, lying between 15°16’19” and 15°40’41”

north latitude, and 120°20’26” and 120°44’6” east longitude. Tarlac is

landlocked by Pangasinan in the north, Nueva Ecija in the East, Pampanga in

the south and Zambales in the west. As a first class province, Tarlac has a

total land area of 305,345 hectares. This is 16.75% of Region III’s total land

area, and 1% of the country’s. 511 barangays constitute 17 municipalities and

the capital city of Tarlac. These municipalities are Anao, Camiling, Mayantoc,

Moncada, Paniqui, Pura, Ramos, San Clemente, San Manuel, and Sta. Ignacia,

Gerona, San Jose, Tarlac and Victoria, Bamban, Capas, Concepcion and La

Paz (UP Planning and Development Research Foundation, Inc., 2010).

Demographics

Tarlac has become a more populated province in the past decade. Between

the years 2007 to 2010, the annual population growth rate of Tarlac is at an

average of 1.76%. Given that this growth rate will continue, the province’s

population is expected to double in 40 years. Note that the population growth

is a direct consequence of natural increases and migration. As of the 2010

survey results, the population count of Tarlac province is at 1, 273, 240. The

sex ratio is 103 males for every 100 females. The number of households is

currently at 280,382, with 83,724 households owning land. Tarlac City stands


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to be the most populous municipality, while Anao is the least populous in the

province (National Statistics Office, 2013).

Due to the population growth experienced, Tarlac is faced with

consequential requirements. The province should be able to meet the

demands for food security and access to potable water, utilities, and waste

disposal, transportation and access; build additional housing and social

infrastructure such as schools and health facilities like hospitals, clinics, rural

health units; and provide economic opportunities to the population in terms

of occupational opportunities, sources of livelihood and business ventures.

Urbanization Pattern

Tarlac is positioned as an agro-industrial growth area. The province is

located in close proximity to major development centers in the region like

Pampanga and Clark. Urbanization in Tarlac has been occurring at a rapid

rate. As an urban and major trade center, the province also serves as an inter-

regional distribution and industrial hub as it lies across two super regions.

The Luzon Urban Beltway, the first super region, considers Region III to be a

major transshipment and logistics hub in the Asia Pacific. Bamban, Capas,

Concepcion, La Paz and Tarlac City lie along this Beltway. The North Luzon

Agribusiness Quadrangle (NLAQ), the second super region, targets the

growth potentials for agricultural activity and food production for Luzon and

North Asia in terms of agricultural exports and eco-tourism. 13 municipalities

of Tarlac form part of the NLAQ region. The Subic-Clark Alliance for

Development (SCAD) positions the region as the logistics hub in Asia Pacific.

Tarlac City, Bamban, Capas, and Concepcion lie along the SCAD Corridor

(UP Planning and Development Research Foundation, Inc., 2010)

Tarlac City has already been classified a Small City (Primary Urban

Center A) with all the new facilities and services available in the locality over


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the last 13 years. Levels in trading and commercial activities are also

increased within the province through business districts in municipalities,

development of malls and other major establishments, concreting of roads in

identified barangays, and extending loans to small vendors and businesses.

Camiling, Paniqui, Capas, and Concepcion are categorized to be Large

Towns. Moncada, Victoria, Sta. Ignacia, La Paz, Gerona, San Jose, Mayantoc

and Bamban are Medium Towns. San Manuel, Anao, San Clemente, Ramos

and Pura are Small Towns. With the positioning of Tarlac as a strategic hub

with networks of roads providing accessibility to the province, investments

and infrastructure are underway. Along with this progress come traffic

congestions, increased industrial and housing pollution, flooding, growth in

population, and uncontrolled usage of land resources, misuse of natural

resources and destruction of habitats. Implementing traffic transportation,

road and traffic policies and enforcing strict environmental laws and land

policies must address these concerns(UP Planning and Development

Research Foundation, Inc., 2010).

Poverty

Poverty stands to be a major social development issue in Tarlac. There is a

high prevalence of poverty and hunger and a very wide economic divide

between the very rich and the very poor (UP Planning and Development

Research Foundation, Inc., 2010). According to the City and Municipal-level

Small Area Poverty Estimates by the National Statistical Coordination Board,

the highest poverty incidence is in the municipality of San Jose at 32.1%. This

is followed by Mayantoc (28.3%), Sta. Ignacia (21.8%), Victoria (20.2%) and

San Clemente (18.2%). These municipalities are largely agricultural. The

lowest poverty incidences occur in Tarlac City (8.7%), Bamban (10.6%),

Paniqui (12.8%), Capas (13.2%) and Concepcion (13.5%). These municipalities


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have a lot of economic activities and are rather more urbanized (National

Statistical Coordination Board, 2009). The table below details the poverty

incidence in the province.

Table 1 Poverty Incidence Estimates for Tarlac Province

(National Statistical Coordination Board, 2009)

City/Municipality

Poverty Incidence (Percentage)

Anao 18.0 Bamban 10.6 Camiling 15.8 Capas 13.2 Concepcion 13.5 Gerona 17.6 La Paz 17.0 Mayantoc 28.3 Moncada 15.9 Paniqui 12.8 Pura 14.7 Ramos 16.7 San Clemente 18.2 San Jose 32.1 San Manuel 17.0 Sta. Ignacia 21.8 Tarlac City 8.7 Victoria 20.2

Environment Tarlac is endowed with physical and natural resources. The western

portion of Tarlac is hilly to mountainous, while the eastern portion consists

of flatlands. Natural resources and forest products are abundant in the

province. Resources like coal, iron, vegetables, fruits, log fires, sand, rocks,

livestock and forest animals are found here. The province has a major thrust

in the provision of adequate and accessible space for sustainable food

production, forest and mineral resources.


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There are a number of areas that are constrained environmentally. These

land areasare naturally prone to hazards, causing negative effects to man and

the environment. Severe erosion must be addressed in the municipalities of

Capas, Sta. Ignacia, Mayantoc, Tarlac City, Bamban and San Jose. There are

also areas that are subject to the volcanic hazards of Mt. Pinatubo.

Concepcion, Capas, Bamban, Tarlac City, Gerona and Paniqui still have lahar

deposits in their agricultural lands and riverbanks. During rains, floods are

prone in the areas of La Paz, Victoria, Concepcion, Gerona, Paniqui,

Camiling, San Clemente and Tarlac City. San Manuel, Pura, Ramos, Anao,

Gerona, Paniqui, Concepcion, Moncada and Tarlac City are areas that are

prone to liquefaction.

Climate

The Coronas Classification of Philippine Climate categorizes the province

of Tarlac under Type 1 climate, which has two pronounced seasons: Dry from

December to April, and Wet from May to November. The main atmospheric

systems controlling rainfall in the area are the southwest monsoon from June

to September and northeast monsoon from December to February. The

Intertropical Convergence Zone (ITCZ) and Local Thermal Convection also

contribute significantly to the total annual rainfall especially during summer

(UP Planning and Development Research Foundation, Inc., 2010).

Land

Dominantly an agricultural economy, Tarlac boasts of a total land area of

305, 345 hectares, comprising 16.75% of the total land area of Region III and

1.0% the nation’s land area (UP Planning and Development Research

Foundation, Inc., 2010). Table 2 below lists the provincial land area per

municipality.


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Table 2 Land Areas by Municipality/City for Tarlac Province


District

City/Municipality

Land Area (Hectares)

Percentage of Provincial Land

Area

District I

Anao 1,961 0.64% Camiling 15,150 4.96% Mayantoc 27,178 8.90% Moncada 7,899 2.59% Paniqui 10,639 3.48% Pura 3,146 1.03% Ramos 2,488 0.81%

San Clemente 5,696 1.87% San Manuel 5,366 1.76%

Sta. Ignacia 13,600 4.45% Sub-total 93,123 30.50%

District II

Gerona 12,480 4.09% San Jose 61,966 20.29% Victoria 11,270 3.69%

Tarlac City 26,270 8.60% Sub-total 111,986 36.68%

District III

Bamban 25,208 8.26%

Capas 42,438 13.90% Concepcion 21,120 6.92% La Paz 11,470 3.76% Sub-total 100,236 32.83%

Total 305,345 100.00%

As of 2004, built-up areas in the province consist of 10,434.3 hectares.

These areas include 3,336 hectares of open space allotted for future expansion.

Table 3 provides a listing of the built-up areas in the province (UP Planning

and Development Research Foundation, Inc., 2010). On the one hand, Tarlac

City owns 26.60% of the total built-up areas, the largest of all. San Manuel, on

the other hand, owns 0.41% built-up area, the smallest percentage. Table 3

details these built-up areas in the province.


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Table 3 Municipality/City Built-Up Areas of Tarlac Province


Lands in the province are categorized into several land use classifications.

The majority of the land in Tarlac is devoted to rice paddies and then woodlands.

The smallest amounts of land are devoted to the usage of cemeteries and parks.

Table 4 shows the land use classifications in the province.

City/Municipality

Built-Up Areas (Hectares)

Percentage from Total Built-Up Areas

Percentage of Built-Up Area per Total Land Area

Anao 64.06 0.91% 0.02%

Bamban 332.41 4.75% 0.11%

Camiling 679.33 9.70% 0.22%

Capas 727.60 10.39% 0.24%

Concepcion 703.00 10.04% 0.23%

Gerona 529.55 7.56% 0.17%

La Paz 387.70 5.53% 0.13%

Mayantoc 168.90 2.41% 0.06%

Moncada 116.40 1.66% 0.04%

Paniqui 362.00 5.17% 0.12%

Pura 121.20 1.73% 0.04%

Ramos 54.84 0.78% 0.02%

San Clemente 93.33 1.33% 0.03%

San Jose 177.70 2.54% 0.06%

San Manuel 28.89 0.41% 0.01%

Sta. Ignacia 233.50 3.33% 0.08%

Tarlac City 1,863.00 26.60% 0.61%

Victoria 361.50 5.16% 0.12%

Total Built-Up Area 7,004.91 100.00% 2.29%


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Table 4 Provincial Distribution of Land Area by Land Use Classification


Land Use Classification

Land Area (Hectares)

Percentage from Total Land Area

Tropical Grass 9,781.00 3.203% Swamp 1,043.00 0.342% Scattered Trees 16,510.00 5.407% Rice Paddy 144,300.00 47.258% Major River 1,193.00 0.391% Park 11.70 0.004% Orchard 3,680.00 1.205% Open Space, Other Lot Land 3,336.00 1.093% Ponds, Lakes, Other Water Bodies 1,110.00 0.364% Woodland 81,730.00 26.766% Cultivated Land 15,890.00 5.204% Built-Up Area 7,010.00 2.296% Clearing 2,192.00 0.718% Cemetery 88.30 0.029% Bush 17,470.00 5.721% All Land Use Classification 305,345.00 100.000%


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Below is the existing land use map of the Province of Tarlac.

Figure 1 Existing Land Use Map, Province of Tarlac



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Agriculture

Of the 305,345 hectares of land in the province, 54.37% of these lands are

utilized for agricultural activity. 166,023 hectares are allocated for rice paddies,

orchards, ponds, lakes, swamps and other bodies of water and cultivated lands.

Agricultural crops and fisheries are allocated with 141,252 hectares of land. The

areas planted to field crops are detailed below (UP Planning and Development

Research Foundation, Inc., 2010)

Table 5 Area Planted to Field Crops by Municipality and District, Tarlac Province


District

City/Municipality

Legumes

(Hectares)

Fruits and Vegetables

(Hectares)

Root Crops

(Hectares)

Total Land Area

(Hectares)

District I

Anao 11 15 7 33 Camiling 25 82 15 122 Mayantoc 80 30 37 147 Moncada 65 220 1,850 2,135 Paniqui 39 94 1,280 1,413 Pura 100 35 374 509 Ramos 102 111 120 333 San Clemente 15 25 7 47 San Manuel 24 9 33 Sta. Ignacia 148 176 47 371 Sub-total 609 797 3,737 5,143

District II

Gerona 143 540 683 San Jose 48 50 70 168 Victoria 29 653 22 704 Tarlac City 71 117 50 238 Sub-total 148 963 682 1,793

District III

Bamban 53 112 60 225 Capas 27 20 524 571 Concepcion 56 157 135 348

La Paz 337 76 1 414 Sub-total 473 365 720 1,558

Total 1,230 2,125 5,139 8,494

Note that Moncada, Paniqui, Gerona, and Concepcion have the greatest

land areas dedicated to root crops in the province. La Paz, Sta. Ignacia, Ramos


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and Pura have the largest areas dedicated to legumes. Victoria, Moncada and Sta.

Ignacia have the largest areas for fruits and vegetable production. Table 6

provides a listing of the different crops that are planted in the province,

including the production volume and areas planted.

Table 6 Crops Planted, Production Volume and Production Area, Province of Tarlac

(Office of the Provincal Agriculturist, 2014)

Crops Area Planted (Has.) Production Volume (MT)

1. Rice (effective) -Irrigated 85,238.69 306,913.13 -Rainfed 26,991.38 103,900.59 -Upland 767.50 2,066.50 2. Corn -Yellow 13,903.90 103,674.10 -Green/White 683.80 6,054.95 3. Root Crops 92.65 247.30 -Sweetpotato 5,356.42 86,257.68 -Cassava 131.32 1,615.25 -Ube 258.81 2,503.56 -Gabi 251.72 1,277.64 -Singakamas 338.50 9,473.18 -Radish 11.10 162.03 4. Legumes 469.02 3,184.00 -Mungo 1,397.97 9,895.35 -Peanut 239.37 694.09 -Bush Sitao 83.32 384.31 -Pole Sitao 181.85 1,439.24 5. Leafy Vegetables 33.72 0.00 -Cabbage 0.00 0.00 -Pechay 58.64 1,489.80 Mustard 43.45 311.00 -Lettuce 5.50 2.25 6. Fruit Vegetables -Ampalaya 416.99 4,264.53 -Eggplant 482.15 4,587.85 -Squash 147.61 811,462.52 -Tomato 236.03 4,482.47 - Potato 12.00 30,060.00 -Upo 59.45 629.53 -Okra 113.52 2,292.00 7. Spices 3.50 26.50 -Spices/bellpepper 4.70 24.30 -Hot Pepper 27.42 220.17 -Onions 76.40 1,042.00 -Garlic 15.00 173.45 -Ginger 54.45 369.20 8. Tobacco 113.00 128.00


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There are also bearing and non-bearing trees in the province. Table 7

shows the composition for these crops:

Table 7 Permanent and Commercial Crops in Tarlac


BEARING NON-BEARING

a. Mango 235,854.00 90,604.00 b. Coconut 8,207.00 2,704.00 c. Guyabano 26,074.00 14,253.00 d. Cashew 11,652.00 725.00 e. Banana 110,790.00 28,216.00 f. Guava/Guapple 29,755.00 8,346.00

Livestock/animal farming is also practiced in Tarlac. Table 8 below shows

the number of raisers/farmers and number of heads per animal in the province.

Table 8 Livestock/Animal Farming in Tarlac Province


Kind of Animal No. of Farmers/Raisers No. of Heads

1. Carabao 10,895.00 33,066.00 2. Cattle 14,332.00 38,171.00 3. Swine 13,692.00 83,922.00 4. Goat 19,666.00 44,423.00 5. Sheep 2,491.00 3,173.00 6. Broiler Chicken 200,899.00 572,245.00 7. Layer Chicken 15,584.00 169,422.00 8. Native Chicken 56,571.00 301,668.00 9. Ducks 49,087.00 155,094.00 10. Pigeon 1,115.00 4,562.00

The Provincial Development Framework Plan for the Province states that

Tarlac (UP Planning and Development Research Foundation, Inc., 2010) farmers

are faced with constraints in their industry, as follows:

Low income of farmers from agricultural activities

(crops/livestock/poultry)

High cost of agricultural production inputs

Resistance of farmers in adoption of technological changes


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Need for consideration of the supply chain for agricultural crops

Low productivity of agricultural crops

o Unsustainable agriculture production growth

o Need for crop zonification

Differing values and perceptions of farmers

Inadequate farm-to-market roads

o Difficulty of marketing agricultural products

o Lack of access to market within and outside the locality

Lack of irrigation of potential or irrigable agricultural areas

Need for postharvest facilities

Need to promote entrepreneurship among farmers

Some interior barangays lack good, all-weather roads

Lack of capital for farm development resulting in idle and abandoned

lands

Non-complementation of crop and animal production, resulting in a waste

of resources

Lack of agri-processing activities to increase value-add from agriculture

Inadequate extension personnel for agricultural activities other than those

that are into rice or corn production

Lack of accurate farm information on agricultural activities

Investment

Tarlac’s large tracts of lands devoted to agriculture and farming equate to

further development in infrastructure that support agricultural production and

the marketing of farm produce. There is a thrust towards agriculture and agri-

processing and fishery productivity. This includes the enhancement of

production methods, thereby linking such to food processing and marketing

support facilities. These activities will be spread throughout the province via


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clustering of the activities and facility location, relative to a particular

agricultural produce (UP Planning and Development Research Foundation, Inc.,

2010). The following gives a more detailed description of Tarlac’s provincial four

development areas:

Table 9 Four Development Areas for Tarlac Province

(Tarlac Investment Promotion Plan, 2013)

Agriculture- Agri-processing

Eco-tourism Circuit

Distribution and Logistics hub/ Agri-processing

Urban Services

San Manuel San Clemente Tarlac City Tarlac City Anao Camiling Capas Camiling Ramos Mayantoc Bamban Paniqui Pura San Jose Concepcion Capas Moncada Capas La Paz Concepcion Paniqui Bamban Victoria Gerona Tarlac City Camiling Mayantoc Santa Ignacia

The following table draws a more concrete picture of the targeted projects

for Tarlac Province along with the preferred areas for investment:

Table 10 Investment Projects and Preferred Areas, Province of Tarlac

(Tarlac Investment Promotion Plan, 2013)

Priority Sector Investment Projects Preferred Areas

A. Agriculture / Agribusiness

1. Malunggay Seed- Oil for Biodiesel Processing 2. Ethanol from Sugarcane for Biodiesel Processing 3. Cassava/Camote Processing for animal feeds 4. Muscovado Production 5. Fruit and Vegetable Processing 6. Upland Rice Production 7. Coconut Production

San Manuel, Anao, Ramos, Pura, Moncada, Paniqui, Gerona, Camiling, Mayantoc and Santa Ignacia


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B. Information and Communications Technology (ICT)

1. Contact Center 2. Business/Knowledge Process Outsourcing 3. Software Development 4. Animation 5. Data Transcription, Engineering Design 6. ICT Ancillary Services

Tarlac City

C. Tourism 1. Tourist Accommodation Facilities 2. Resorts 3. Retirement Villages 4. Medical Tourism (healthcare and wellness products and services)

San Clemente, Camiling, Mayantoc, San Jose, Capas, Bamban and Tarlac City

D. Light and Medium Industries

1.Production/manufacture of exports products and services

All municipalities

E. Infrastructure 1. Power and water facilities 2. Highways, railways, roads and bridges

All municipalities

F. Logistics 1. Cold storage 2. Blast freezing 3. Ice plants 4. Pesticide Analytical Laboratory 5. Mango Packing House and Processing Facility

Capas, Bamban, Concepcion, La Paz and Victoria

G. Natural and Organic Industries

1. Production of Fragrances and Essential Oils 2. Organic Rice Production 3. Organic Banana Production

All municipalities

Development Vision and Framework of the Province

Tarlac is envisioned as: A progressive, peaceful and environment-conscious province with sustainable and globally competitive agriculture: a major logistics, investment and tourism destination; with well-planned communities that are home to healthy, productive, and principled citizenry.


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The province vision statement spells out the desired role that the

province can play or the best contribution it can make to the development

of the nation, and the region of which it is an integral part. It also states

the desired state of the Province as an environment for the Tarlaquenos to

live in and where they can make a living.

The provincial development goals of the province are detailed in the

following table:

Table 11 Developmental Goals of Tarlac Province


Sector Developmental Goal

Society

To ensure that families live peaceful, orderly community with decent homes, and to enable residents to be responsible for their personal, health and social responsibilities through proper education and basic life skills.

Economy

To enhance local economic growth; The objectives of local economic development plan include: increased and sustained employment rate in all the sectors of the economy; enhanced investment level; and increased value added from agriculture, fishery and forestry

Infrastructure, Transportation and Access

To improve people’s access to physical services and utilities, including transportation and access. This aims for modernization and re-engineering for efficiency and enhancing the sector’s competitiveness to be at par with the rest of the progressive areas, nationally and globally.

Environment

To sustain the use of natural resources for wealth creation while maintaining the integrity and resilience of ecosystems, both natural and man-made, for a better quality of life of the people of Tarlac Province.

Institution

To sustain good governance through a provincial government bureaucracy that is efficient, productive and responsive to the development needs of the local constituency.

Priority Commodity Chains Development


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The PRDP prioritizes commodities in each region and province. This is to

ensure that the project is aligned with both provincial and national goals. The

priority commodities of Tarlac are listed below:

Sweetpotato

Goat

Onion

Okra

Aromatic/Pigmented Rice

Mango

Mungbeans

Commodity Value Chain 1: Sweetpotato

A. Commodity Profile

Sweetpotato (Ipomoea batatas L.), a bio-efficient crop grown for its edible

roots, belongs to the family Convolvulacea (Morning Glory). It originated in or

near northwestern South America around 8000-6000 B.C. Guatemala, Colombia,

Ecuador, and northern Peru have the greatest diversity in sweetpotato

germplasm. Secondary centers of genetic variability are in Papua New Guinea,

the Philippines, and parts of Africa. Sweetpotato is locally known as “kamote.”

Sweetpotato roots come in various shades and colors--- from white, cream,

yellow, golden orange to purple. The flesh color of the sweetpotato is said to be

directly related to its beta-carotene content. Beta-carotene in orange-fleshed

sweetpotato is something that the human body can use to produce vitamin A,

thus, calling it, “Provitamin A.” The purple-fleshed sweetpotatoes have the

highest antioxidant activity (activity protecting cells against the effects of free

radicals – damage due to oxygen – such as heart disease and cancer) among any

other sweetpotatoes. Also, the skin is found to have the highest antioxidant


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activity in any other part of the plant. The more common varieties in Luzon A

Cluster are the cream to yellow fleshed and those with reddish to purple skin.

Table 12 Some Varieties Planted in the Regions of Luzon A Cluster

(Limon and Sampaga/Don Mariano Marcos Memorial State University, 2013)

Variety Root Skin Color Root Flesh Color Shape

Super Bureau Red white round to oblong

Bengueta Light Pink Light Yellow Elongated

Tocano Light Pink Light Yellow Round

Inubi Red violet White with violet tinge

Elongated

Japanese Ubi Purple Purple Oblong to Elongated

SP Native Light orange Light Yellow Elongated

PSBSp 22 Purple Light Yellow Round to Oblong

According to the International Potato Center (CIP), there are 6,500

varieties of sweetpotato being cultivated around the world as of 2013. In the

Philippines, there are thirty-two sweetpotato varieties developed by the National

Seed Industry Council (NSIC) and Philippine Seed Board (PSB) that are

recommended for local production. The variety widely planted in the Luzon A

Cluster is the Super Bureau (VSP6). Super Bureau is high yielding with a

technical yield of 20 to 25 MT per hectare. It has a high dry matter content of

32.90%. Sweetpotato roots with high dry matter content are highly suitable for

cooking. They do not easily break when boiled or when made into sweetpotato

skewers or kamote cue. Farmers also plant the Taiwan variety, which is used for

Kamote Fries (substitute of the Potato French Fries).

The leaves, tops, and roots of the sweetpotato are largely utilized as either

food or feed. The heart shaped leaves are used as vegetables and supplemental


19


feed to hogs, cattle, and other ruminants. More products, however, can be made

from the roots than the leaves and, as such, would be the focus of the value chain

analysis. Products from the sweetpotato storage roots have greater value as

these require more complex value-added activities. Sweetpotato roots are

utilized as food, feed, and raw materials for industrial products.

Figure 2 Varieties of Sweetpotato Planted in Luzon A Cluster

Figure 3 Sweetpotato-based Processed Food Products in Central Luzon


20


The crop is most often consumed boiled, fried, or roasted in fresh form. It is

consumed both as a snack food and as a supplemental or alternative staple food

in lieu of rice. To date, the most dominant users of sweetpotato are the snack

food subsector and households for the preparation of various traditional Filipino

desserts and dishes such as the “pinakbet”. The most popular snack made of

sweetpotato is the “kamote cue” (sliced camote dipped in brown sugar, fried in

oil, and sold in bamboo skewers). The camote cue is usually consumed as mid-

afternoon snacks. It is sold via street vendors, school canteens, and restaurants.

It is also being offered as an alternative to potato French fries in some fastfood

establishments and restaurants such as BonChon Chicken and Max’s Fried

Chicken. BonChon Chicken is said to be using imported sweetpotato.

Sweetpotato is acquiring an increased role in rural development as raw

material for many industrial applications. The most important industrial uses of

sweetpotato are as source of energy in animal diets in the feed industry, for the

starch industry, and for the production of ethanol.


21


Table 13 Sweetpotato By-Products for Industrial Use

Product Description

Chips and Granules Undersize and oversize sweetpotatoes are chipped into thin slices not exceeding 1.5 cm thick and 10 cm long. The chips are then further processed into granules. The chips and granules are used by feed mills as alternative or substitute to corn. Production of dried chips and granules is undertaken by cooperatives in Pampanga and Tarlac. Comment: only chips for Tarlac, nit granulated.

Starch Carbohydrates generally make up between 80 to 90 % of the dry weight of sweetpotato roots. The sweetpotato yields an important starch, which is used as a food starch in noodles and technically for sizing textiles and papers, for the manufacture of adhesives and in laundries. In the mid-1990s, Central Luzon had three starch plants with a combined capacity of 130 tons of sweetpotato roots per days. The factories required roots with high starch content, and only accepted two cultivars meeting this requirement – Bureau and Super Bureau. By 1998, it was estimated that at least 80% of total area for sweetpotato production was devoted to these two varieties. Soon after the sweetpotato starch industry in Central Luzon took off, a major disease, locally known as kulot and caused by a virus complex, occurred and caused crop loss of as high as 100%. Unfortunately, the high starch varieties were highly susceptible to the disease, forcing farmers to abandon their sweetpotato fields as early as two weeks after planting when the symptoms appear. By the late 1990s, the starch factories could no longer sustain operations due to the inadequate supply of sweetpotato roots. Key factors that plagued the short-lived starch industry in Central Luzon were: i) the high disease incidence; ii) lack of alternative high-starch varieties with low susceptibility; and iii) problems in the marketing agreement between farmers and the factories (Campilan, UPWARD Program). Comment: there were two starch plants operating in the 90s NOT in Central Luzon but in Pangasinan

Ethanol Ethanol is produced by fermenting and distilling sweetpotato. Ethanol has various industrial uses: It can be mixed with petrol or used on its own as a transport fuel. It can also be used as a base for alcoholic beverages. Lastly, ethanol can be utilized as industrial alcohol which is important in the pharmaceutical and cosmetic industry. There are no existing initiatives in ethanol production in Luzon A Cluster. China uses both cassava and sweetpotato in its ethanol production.


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B. Production Trends

World Production

All around the world, sweetpotato is being produced in many

countries as supported by production data in Table 14. World production of

sweetpotato increased from 104,146,000 MT in 2009 to 110,746,000 MT in 2013.

The areas cultivated to sweetpotato decreased slightly from 8,365,230 hectares in

2009 to 8,240,970 hectares in 2013. The increase in production volume between

2009 and 2013 was primarily due to increase in farm productivity, from 12.45 MT

in 2009 to 13.44 MT in 2013.

Sweetpotato is produced in about 116 countries. Asia accounts for about

78.38% of the world production in 2013. With 78,875,000 MT of production in

2013, China remained the largest producer of sweetpotato, accounting for 71% of

world production and 91% of the output from Asian countries.

Table 14 World Production of Sweetpotato, 2009-2013

Country Production Volume (in MT)

2009 2010 2011 2012 2013 WORLD 104,146,000 103,282,000 105,173,000 108,004,000 110,746,000 China, mainland

76,543,500 74,172,500 75,362,000 77,375,000 78,875,000

Nigeria 3,300,000 3,300,000 3,300,000 3,400,000 3,400,000 Tanzania 1,417,390 2,424,200 3,573,300 3,018,180 3,100,000 Uganda 2,766,000 2,838,000 2,554,000 2,645,700 2,587,000 Indonesia 2,057,910 2,051,050 2,192,240 2,483,470 2,386,730 Viet Nam 1,211,300 1,318,500 1,362,190 1,422,500 1,364,000 Ethiopia 450,763 736,349 390,135 1,185,050 1,354,910 Angola 982,588 986,563 1,045,100 644,854 1,199,750 Kenya 1,034,200 820,971 759,471 859,549 1,150,360 India 1,119,700 1,094,700 1,046,600 1,072,800 1,132,400 United States 883,100 1,081,590 1,223,070 1,201,200 1,124,230 Rwanda 803,228 840,072 845,099 1,005,310 1,081,220 Madagascar 910,857 919,127 1,102,950 1,144,000 984,000 Japan 1,026,000 863,600 885,900 875,900 942,300 Mozambique 900,000 920,000 860,000 900,000 890,000


23


Burundi 926,319 966,343 955,103 659,593 839,715 Papua New Guinea

595,000 615,000 620,000 580,000 600,000

Haiti 271,346 414,518 240,000 543,169 599,683 Philippines 560,516 541,525 516,338 516,366 527,687 Brazil 477,472 495,182 544,820 479,425 479,000 Other Countries

5,908,811 5,882,210 5,794,684 5,991,934 6,128,015

Source: FAOSTAT

Figure 4 Percentage Breakdown of Sweetpotato by Regional Group/Continent, 2013

Figure 5 Value Chain Map for Fresh Market


24


Sweetpotato roots are utilized as food, feed, and raw materials for

industrial products. The crop is most often consumed boiled, fried, or roasted in

the fresh form. It is consumed both as snack food and as a supplemental or

alternative staple food in lieu of rice. To date, the most dominant users of

sweetpotato are the snack food subsector and households for the preparation of

various traditional Filipino desserts and dishes such as the “pinakbet”. The

most popular snack made of sweetpotato is the “kamote cue” (sliced camote

dipped in brown sugar and sold in bamboo skewers). The camote cue is usually

consumed as mid-afternoon snacks. It is sold via street vendors, school canteens,

and restaurants. It is also being offered as an alternative to potato French fries in

some fastfood establishments and restaurants such as BonChon Chicken and

Max’s Fried Chicken. BonChon Chicken is said to be using imported

sweetpotato. Majority of the farmer growers past through the traders and only

few farmers/growers directly deliver their products to the wholesaler and

retailer.

Figure 6 Value Chain Map for Feeds


25


Sweetpotato is acquiring an increased role in rural development as raw

material for many industrial applications. The most important industrial use of

sweetpotato is as a source of energy in animal diets in the feed industry. With the

increasing price of yellow corn as main source of raw materials in the feed

formulation, the feed millers find alternative raw materials for feeds production.

One commodity identified by feed millers is the sweetpotato. To date, only two

cooperatives in Central Luzon have existing marketing contracts or purchase

orders with San Miguel Foods Incorporated and CP group of Companies These

cooperatives are Sapang PMPC of Moncada, Tarlac & Lambac MPC of Guagua,

Pampanga.

Domestic Production

Under the Philippine Food Staples Self-sufficiency Roadmap (FSSR) 2011–

2016 that aims to achieve rice self-sufficiency by 2013 in the country, sweetpotato

plays a major role in realizing this goal. Strategies to solve the food scarcity issue

in the country by managing rice consumption include increasing food staple

supply by 3.5 percent annually and making these crops affordable and available

to everyone (Official Gazette, 2011).


26


In terms of production volume, Eastern Visayas occupies the top spot,

followed by Bicol Region & Western Visayas. Region 3 Central Luzon ranks 7th

in terms of production area, contributing 6% of the total volume of sweetpotato

produced in the country in 2012, as shown in Table 15. In terms of area, however,

Eastern Visayas has the widest area while Central Luzon ranks 5th, accounting

for about 7% in the total area for sweetpotato in the Philippines.

Table 15 National Production (in MT) of Sweetpotato, 2008-2012 (BAS, 2014)

Figure 7 Percentage Share in Area of Production by Region (2008-2012)

VOLUME 2008 2009 2010 2011 2012

PHILIPPINES 572,654.79 560,516.40 541,265.03 516,338.02 516,365.52 EASTERN VISAYAS 118,067.30 118,185.30 118,039.70 118,982.60 123,349.90 BICOL REGION 95,766.89 95,860.60 94,700.84 92,120.58 91,942.91 WESTERN VISAYAS 44,599.81 46,447.25 44,454.74 45,345.23 45,641.58 CENTRAL VISAYAS 47,557.22 47,021.78 40,846.91 38,718.32 32,555.15 NORTHERN MINDANAO 28,550.68 29,436.69 29,724.53 31,529.59 32,473.99 CALABARZON 37,190.30 33,683.92 32,312.03 31,389.62 32,471.81 CENTRAL LUZON 31,554.72 31,685.01 31,543.57 30,004.38 31,196.02 CARAGA 62,382.77 53,655.66 48,475.03 27,907.78 27,939.08 DAVAO REGION 19,620.17 19,813.88 19,900.83 19,013.89 18,417.31 CAR 17,353.32 17,186.86 16,519.68 15,976.12 15,710.64 ILOCOS REGION 15,320.38 15,168.80 15,516.04 15,255.97 14,976.87 MIMAROPA 12,552.75 12,661.93 12,850.82 13,318.80 13,881.97 SOCCSKSARGEN 9,734.61 10,154.89 10,457.04 10,783.23 10,782.01 CAGAYAN VALLEY 15,886.28 13,573.56 11,068.32 11,063.03 10,358.79 ZAMBOANGA PENINSULA

10,205.00 9,854.03 8,773.83 8,951.84 8,546.78

ARMM 6,312.59 6,126.24 6,081.12 5,977.04 6,120.71


27


Figure 8 Top Ten Sweetpotato-producing Provinces, 2013

Regional Production

Central Luzon is the main commercial growing area of sweetpotato in the

country, supplying the Metro Manila market and other provinces in Luzon.


28


Alongside commercial production are semi-commercial and subsistence systems

similar to most of the other sweetpotato-growing areas of the country. There are

at least 5,600 sweetpotato producers in the region. Sweetpotato is grown after

rice in a season that also grows corn and other vegetables in sandy loam soils.

Per BAS data, Tarlac province is number one in terms of volume of

production and area planted. Although the trend in area production declines

from 2008 to 2012, it appears that Tarlac Province maintains its rank in years both

in area and volume of production, contributing 68% of the Region’s sweetpotato

production in 2012 and accounting for at least 74% of the production area in the

Region, for the same year.

Table 16 Sweetpotato Production Volume, Harvested Area and Yield per Hectare, 2012.

PROVINCE Production (MT) Area (Ha) Yield/Ha (MT)

CENTRAL LUZON 31,196 6,942 4.5

AURORA 2,262 396 5.7

BATAAN 1,515 465 3.3

BULACAN 718 60 12.0

NUEVA ECIJA 1,106 216 5.1

PAMPANGA 2,500 533 4.7

TARLAC 21,361 5,100 4.2 ZAMBALES 1,735 172 10.1

C. Analysis and Prioritization of Target Locations of Interventions

The Expanded- Vulnerability and Suitability Assessment (E-VSA) is a

science-based tool developed by the Bureau of Soils and Water Management to

identify the suitability of commodity in a certain location/municipality. The

results of EVSA will guide the planner in allocating the government’s investment

to support and to uplift the income of the farmers and players in the value chain.

Figure 9 E-VSA Map for Sweetpotato


29


Table 17 Statistical Analysis of the Province by Municipality per the E-VSA Tool


30


Municipality Poverty

Incidence

Production Area

(Hectares)

Production Volume (Metric Tons)

Old Composite

Index

Old Rank

New Composite

Index

New Rank

Geocode

Moncada 16 1350 24300 0.6032 2 0.74068 1 36909000

Paniqui 13 1428 23811 0.5338 12 0.70351 2 36910000

Gerona 18 387 2965 0.5367 11 0.4032 3 36906000

Concepcion 14 350 4550 0.5453 7 0.40287 4 36905000

Camiling 16 151 3020 0.5835 4 0.38776 5 36903000

La Paz 17 36 280 0.6134 1 0.36717 6 36907000

Santa Ignacia 22 8 53 0.587 3 0.36381 7 36915000

Ramos 17 128 2278 0.52 13 0.34981 8 36912000

Victoria 20 12 98 0.5549 6 0.34244 9 36917000

San Manuel 17 2 16 0.5618 5 0.33444 10 36914000

Anao 18 1 8 0.5451 8 0.32901 11 36901000

Pura 15 20 80 0.5385 9 0.31959 12 36911000

Tarlac City 9 20 239 0.5377 10 0.30175 13 36916000

Capas 13 134 2670 0.4338 15 0.29828 14 36904000

San Clemente 18 3 38 0.4699 14 0.29193 15 36913000

San Jose 32 5 38 0.3712 17 0.28661 16 36918000

Mayantoc1 28 28 410 0.3594 18 0.27449 17 36908000

Bamban 11 25 275 0.4009 16 0.24059 18 36902000

D. Investment Plan

The sweetpotato value chain helps identify the segments that require

intervention or assistance. The value chain analysis will guide the PLGU/LGU

planner and the National Government in prioritizing the constraints and

interventions in the value chain. This is to increase the competitiveness of the

industry and promote inclusiveness to the players of the value chain. The

Provincial Government of Tarlac then prioritizes the gaps/constraints and

strategizes on where to establish the projects. Such strategies will address the

1The municipality of Mayantoc is the sole producer of clean planting materials in the

province. One of the enterprises identified is the establishment of a nursery and net houses for clean planting materials. Hence, it is positioned as a municipality essential for inclusion in the development of interventions for sweetpotato. Other neighboring municipalities that do not commercially produce sweetpotatoes but serve as very good locations as sources of clean planting materials are San Jose and Santa Ignacia.


31


gaps and contribute to inclusive growth, making the province more competitive

in the sweetpotato industry.

The province prioritizes the following interventions:

The establishment of postharvest processing facilities with mobile

chipping machine to address the problems of lack of postharvest

processing facilities with storage, packing house and limited mobile

chipping machines in the remote production areas;

The limited supply of quality clean planting materials (CPM) all

year round;

The improvement of farm-to-market road access in the production

areas to minimize transaction cost and reduce travel time and to

provide greater road accessibility all year round;

The upgrading and establishment of tissue culture laboratory to

support the expansion areas and minimize the incidence of pest

and diseases of sweetpotato.

Such interventions and aid are geared towards boosting agricultural

development and income-increase for the rural poor. The enumerated

interventions are aligned with the developmental goals and priority programs of

the Agriculture and Fisheries Modernization Plan (AFMP) of Region III, as well

as that of the provincial goals of Tarlac.

The Investment Plan for Tarlac Province is supported by the Value Chain

Analysis’ segmentation and key gaps/constraints. The annual financial

requirements for each proposed intervention are shown in Annex 5.


32


Provincial Commodity Investment Plan (PCIP) for Sweetpotato

The Sweetpotato Value Chain Matrix identifies the different constraints

that Tarlac faces in the sourcing, producing, processing and marketing of the

commodity.


33


PCIP Matrix for Sweetpotato Key Gap/ Constraint in VC Development in the

Province

Brief Description of Potential

Intervention

Target Result

Target Areas

Proposed Lead &

Other Players

Estimated

Project Cost

Proposed sources of

Funds

Remarks

Rank

INPUT PROVISION

Limited supply of tissue cultured planting materials

Upgrading of existing tissue culture laboratory that will produce clean planting materials (CPM)

Upgrade existing Tissue culture lab.

No. of farmers: 2,794 Capacity of the proposed tissue culture lab: 1,500 plantlets per month Area of CPM production: 100 has. Existing capacity of lab: 1,000 plantlets

Camiling

TCA PLGU

PhP 6,500,000.00

DA-HVCDP

3

Lack of supply of tissue cultured planting materials

Establishment and/or scaling up of existing nurseries/multiplication farms

Establish 3 nurseries Output: 520,847,360 stem cuttings No. of farmers reached/served: 2,794 No. of net houses: 20 Area of each nursery: 10m x 11 m Area ¼ ha., dimensions of net houses: 5m x 22m

Mayantoc*** (the only one in Tarlac producing CPM), Sta. Ignacia & San Jose (these are the immediate areas surrounding Mayantoc and are also the potential CPM producers as they do not commercially produce sweetpotato) San Jose, Santa

Mayantoc Sweet Potato CPM Producers Coop, Ambalingit Farmers PMPC, Grains Multi-Purpose Coop, Mamonit PMPC, Maniniog MPC, Mountainside PMPC, St. Joseph PMPC. David’s Farmers Marketing Coop, Mabulod Green

PHP 6,000,000.00

PRDP PLGU/ MLGU PG

2016

3


34


Key Gap/ Constraint in VC Development in the

Province


Intervention

Target Result

Target Areas

Proposed Lead &

Other Players

Estimated

Project Cost

Proposed sources of

Funds

Remarks

Rank

Ignacia Mayantoc Brgys: Pob. Norte Pob. Sur Cubcub San Bartolome Mapandan Maniniog Ambalingit Calabtangan Carabaoan Mamonit

Farm Producer’s Coop Bagong Ugnayan ng Santa Ignacia Layunin Angat Kabuhayan, Caduldulaoan PMPC, Calipayan MPC, Macaguing PMPC, Maserpat MPC, Pugo Cecilio Farmers Producers Coop, San Sotero PMPC, Sta Ignacia Furniture, Antique & Bamboo Producers Coop, Sta. Ines East PMPC, Sta. Ines Golden Grains PMPC, Timmaguab II PMPC, UMC Saranay MPC DA-OPAG, TCA

Accreditation of CPM producers

50 CPM producers (existing number of cooperatives for Mayantoc

2,000 hectares (1 hectare = 45-50,000 cuttings) San Jose; Santa Ignacia;

Mayantoc CPM Producers’ Cooperative,DA,DA-OPAG,TCA,BPI

PHP 500 accreditation fee per producer

DA HVCDP, PLGU/ MLGU

3


35



Province


Intervention

Target Result

Target Areas

Proposed Lead &

Other Players

Estimated

Project Cost

Proposed sources of

Funds

Remarks

Rank

Beneficiaries include: farmers of Mayantoc, San Jose, Santa Ignacia, Moncada, Paniqui, Gerona, Camiling, Concepcion 30 farmers per municipality, 2 batches

Mayantoc Brgys: Pob. Norte Pob. Sur Cubcub San Bartolome Mapandan Maniniog Ambalingit Calabtangan Carabaoan Mamonit

Training cost PhP 50,000 per batch = PhP 100,000 for 2 batches PhP 1,667.00 per head, to include mass graduation & field day

Increasing cost of chemical fertilizer

Establishment of organic fertilizer production plant

One Organic Fertilizer Production Plant 25,000 farmers to serve To make fertilizers more affordable and readily available for sweetpotato farmers

Gerona Lead player: Sapang PMPCI, Ablang-Sapang Producers Cooperative, Other players: PLGU/ MLGU DA BSWM DA-OPAG, PCEDO, TCA

PHP 5,000,000

PRDP PLGU/MLGU PG

6

Continue to capacitate and educate farmers on the benefits and importance of using organic fertilizer

No. of batches of Training: 10 No. of farmers trained: 500

Target municipalities: Moncada, Paniqui, Gerona, Camiling, Concepcion No. of pax per batches: 50

PLGU/MLGU DA BSWM DA-OA BSWM TCA

PhP 30,000 per batch PhP 1,500,000.00

PLGU/ MLGU

Support

6

Conduct participatory technology demonstration

No. of technology demonstration: 3

Moncada, Paniqui,

PLGU/ MLGU

PhP 200,000.00

PRDP PLGU/

Support


36



Province


Intervention

Target Result

Target Areas

Proposed Lead &

Other Players

Estimated

Project Cost

Proposed sources of

Funds

Remarks

Rank

on the use of organic fertilizer

Concepcion DA BSWM DA-OA BSWM, TCA

MLGU 6

Low use of fertilizer among smallholders due to limited purchasing capacity.

Strengthen existing cooperatives as input providers and link them to financial institutions that provides credit services with friendly terms and conditions

Linkages to financial institutions: 2 No. of farmers trained 150

To increase accessibility of production loans from financial institutions

Camiling Concepcion Gerona Ramos Paniqui

PLGU/ MLGU CDA DA-AMAD Financial institutions PCEDO

DA Credit Support

6

Credit facilitation for farmers and cooperatives

No. of farmers assisted: 381

No. of coops assisted: 5

Moncada, Paniqui, Gerona, Camiling, Concepcion

PCEDO, Landbank, DBP, Cooperatives

PhP 20,000.00

PCEDO PLGU DA

Credit Support 6

Establish market linkages/ marketing agreement with institutional buyers

No. of market linkages/ agreement: 5

No. of coops assisted: 10

Sapang PMPC Ablang Sapang Producers’ Cooperative Raniag MPC Barang PMPC Aduas PMPC

Sapang PMPC, Ablang Sapang Producers’ Cooperative, Raniag MPC, Barang PMPC, Aduas PMPC Dizon Farms, Global Foods, UBM

PhP 20,000.00

DA AMAD PLGU MLGU

This is addressed by projects rank 2 and 3

6

Find an existing cooperative that will provide an added service of supporting price stabilization for farmers

No. of technical briefings conducted: 2 trainings, 50 participants from 5

2 technical briefings per municipality Moncada,Paniqui,

Sapang PMPC PLGU MLGU

PhP 300,000.00

PCEDO Support

6


37



Province


Intervention

Target Result

Target Areas

Proposed Lead &

Other Players

Estimated

Project Cost

Proposed sources of

Funds

Remarks

Rank

trainees from 10 municipalities

Gerona, Camiling, Concepcion

CDA

Limited access to and availability of steady supply of clean planting materials all year round

Strengthen research and development and establish techno-demo about the production of clean planting materials and prevention and control of sweetpotato virus disease complex (SPVD), benchmarking, socio-economic studies, impact assessment

Establish: 5 PTD on CPM

No. of participatory technology demonstration: 1

No. of farmers trained: 25

Mayantoc San Jose Santa Ignacia Camiling Concepcion For PTD: Moncada Paniqui Gerona Concepcion Camiling Ramos For 2017

Mayantoc CPM Producers’ Cooperative TCA, DA-OPAG, LGUs, PCEDO

PhP 1,000,000.00

DA-HVCDP PLGU TCA PG

Support

3

FARMING

Limited outreach of existing providers / existing extension services Low adoption/ uptake of improved science-based sweetpotato farming and Good Agricultural Practices

Set-up or capacitate group of farmers as providers of improved technology or services to co-farmers through conduct of FFS, techno-demo, and trainings and to support the set-up of research and demonstration plots to showcase good agronomic practices and climate-smart farming technologies

No. of FFS: 5 Total No. of farmers pax: 250

Moncada Paniqui Gerona Concepcion Camiling

PG TCA PLGU MLGU DA

PhP 500,000.00

PRDP PLGU MLGU TCA DA HVCDP

Support

4

Conduct of skills training and education on sweet potato farming and

No. of trainings conducted: 2 trainings, 50 participants from 5

Sapang PMPC Ablang Sapang Producers’

PLGU MLGU DA

PhP 100,000.00

PLGU/ MLGU Sapang

Support

4


38



Province


Intervention

Target Result

Target Areas

Proposed Lead &

Other Players

Estimated

Project Cost

Proposed sources of

Funds

Remarks

Rank

agricultural management training to facilitate promotion and adoption of GAP and climate-smart agriculture

trainees from 10 municipalities

Cooperative Raniag MPC Barang PMPC Aduas PMPC

DTI ATI PCEDO

PMPC Ablang Sapang Producers’ Cooperative Raniag MPC Barang PMPC Aduas PMPC

Limited access to efficient technology/ Farmers cannot afford and/ or pay upfront for equipment and technology

Set-up of common service facilities for mechanized farming with a focus on land preparation and harvesting technologies

Two 4WD tractor with accessories per coop 2 Harvesters 2 Cultivator 2 Dryers

Moncada, Paniqui, Gerona, Camiling, Concepcion

Sapang PMPC, Ablang-Sapang Farmers Producers’ Coop, Me-We Producers Coop, Moncada Tarlac Farmers MPC, The Tillers Multi-Purpose Coop. Refer to Annex 6 for list of other cooperatives per municipality

PhP 48,000,000.00

PRDP PLGU/ MLGU PG

4

Lack of organized groups

Organize farmers into cooperatives/ associations

Coop/association to be organized: 6 No. of farmers trained 150

Camiling Concepcion Gerona Ramos Paniqui

PLGU/ MLGU CDA DA-AMAD Financial institutions PCEDO

DA Credit Support

7

TRANSFORMATION/ PROCESSING


39



Province


Intervention

Target Result

Target Areas

Proposed Lead &

Other Players

Estimated

Project Cost

Proposed sources of

Funds

Remarks

Rank

Limited access to common service facilities (dryer, chipper, granulator, storage, and transportation) for the production and marketing of sweetpotato granules Low recovery due to inadequate facilities

Provision of Custom Service and Establishment of Processing Center and Storage Facility for Sweetpotato in the Province of Tarlac

No. of post-harvest processing center and storage facilities: 3

Moncada (2015) Camiling Concepcion Paniqui

Sapang PMPC, Concepcion Sweetpotato Producers’ Cooperative, Raniag MPC, Aduas PMPC PHILMECH, DA, DOST, DTI, BAPS

PhP 38,815,548.43

PRDP PLGU PG

1

Building with chipping area: 3

Moncada (2015) Concepcion Paniqui

Sapang PMPC, Concepcion Sweetpotato Producers’ Cooperative, Raniag MPC, Aduas PMPC

PhP 2,880,000.00

PRDP PLGU

1

Limited range of commercially viable products Low level of value addition

Product and market development support with a focus on intermediated and processed food products geared for the following markets: i.) feeding and nutrition programs/disaster relief assistance/hospitals (e.g., instant noodles); ii.) restaurants (ready-to-cook fries and chips); iii.) supermarkets and health shops (e.g., 500 grams and 1 kilo pack of ready-to-cook high quality sweetpotatoes)

No. of trainings conducted: 2 trainings, 50 participants from 5 trainees from 10 municipalities

Sapang PMPC Ablang Sapang Producers’ Cooperative Raniag MPC Barang PMPC Aduas PMPC

PLGU MLGU DA DTI ATI PCEDO

PhP 100,000.00

PLGU/ MLGU Sapang PMPC Ablang Sapang Producers’ Cooperative Raniag MPC Barang PMPC Aduas PMPC

Support

4

MARKETING


40



Province


Intervention

Target Result

Target Areas

Proposed Lead &

Other Players

Estimated

Project Cost

Proposed sources of

Funds

Remarks

Rank

High cost of transaction due to poor farm-to-market road

Cost contribution to rehabilitation of farm-to-market roads

14.689 kilometers Moncada

Brgys. Capaoayan, Banaoang West, Banaoang East, Ablang Sapang Camiling, Concepcion, Gerona, Paniqui,

PLGU MLGU DA

PhP 145,131,687.10

PRDP PLGU

2

Low bargaining power Development of capacity of farmers to incrementally associate, collaborate, and coordinate to achieve economies of scale in their transactions and to become attractive partners to large buyers and establishment of common trading center for sweetpotatoes (fresh and chips for feeds) and other commodities

No. of trading centers: 3

Moncada Concepcion Paniqui

Sapang PMPC, Concepcion Sweetpotato Producers’ Cooperative, Raniag MPC, Aduas PMPC PHILMECH, BAPS, DA, DOST, DTI

PhP 3,000,000.00

PRDP PLGU/ MLGU PG

5

Support Services:

Financing

Research and Development

Extension

Laboratory

Enabling Environment:

Total Estimated Project Cost ₱ 268,035,265.53


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Institutional Arrangements for PRDP-Funding

Implementation and Supervision

The Provincial Program Management and Implementing Unit (PPMIU) is

headed by the Provincial Administrator. There is also a PPMIU Focal Person who

serves as the overall coordinator for the Philippine Rural Development Program

(PRDP) for the province of Tarlac. A Technical Working Group has also been

created for the following components of the PRPD – IPLAN, IBUILD and IREAP,

and other support functions. With the full cooperation and assistance of the

concerned LGUs, it is the PPMIU’s responsibility to implement all sub-projects,

including but not limited to the preparation of pertinent documents and studies

that would be required by the projects.

Organization and Management

The PPMIU organizes and manages the PRDP subprojects through its

component units and sub-units as the IPLAN Unit, the IBUILD Unit, the IREAP

Unit, the M&E Sub-Unit, the SES Sub-Unit, the Finance Sub-Unit, the

Procurement Sub-Unit, the IEAC Sub-Unit and the Grievance Redress

Mechanism Point Person.

Please refer to Annexes 1, 2 and 3 for the copy of the Executive Order and

Special Order creating the province’s PPMIU and Technical Working Group,

respectively.

Monitoring and Evaluation

The Operations Manual specifies a monitoring and evaluation tool that

will be utilized by the different PRDP units in tracking the progress of the

subprojects. The Monitoring and Evaluation Sub-Unit of the PPMIU will handle

this task.


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Safeguards

The province of Tarlac ensure to abide by the safeguard policies set by the

World Bank and the Philippine Government as described in the Social and

Environmental Safeguards (SES) Framework of the PRDP.

Social Safeguards will be governed by the Indigenous Peoples

Development Framework, Land /Right-of-Way (ROW) Acquisition and

Resettlement Policy Framework. The Philippine Environmental Impact System

will govern environmental safeguards and will adopt the Environmental

Framework and Guidelines set for by the program.

The SES Sub-unit of the PPMIU will carry out the environmental

guidelines, prepare and implement the environmental management plan,

resettlement action plan and indigenous people development framework in a

manner that is satisfactory to the World Bank.

PDC Endorsing the PCIP and the PLGU Commitment for Budget Counterparting

The Provincial Development Council has endorsed the budget

counterparting for the Provincial Commodity Investment Plan through

Executive Committee Resolution No. 01 dated March 17, 2015. This budgeting

also warrants the PLGU’s commitment to the PRDP and its goals. Refer to

Annex 4 for the copy of the resolution.

Conclusion

Serving as a basis for both the IBUILD and IREAP components of the

PRDP initiatives for Tarlac province, the Provincial Commodity Investment

Plan (PCIP) substantiates the proposed interventions detailed for each

priority commodity. The PCIP also functions as the stimulus in the


43


mobilization of resources from other National Government Agencies and

private sectors.

Recommendation The Provincial Government of Tarlac, along with the support and assistance

of the National Government Agencies, Local Government Units and the

private sector, must work on increasing the growth and productivity of the

agricultural sector, continuously seeking new approaches to fulfill the PCIP.


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Annexes

Annex 1 Executive Order No. 1 (Creation of PPMIU)

Annex 2 Executive Order No. 1-A (Creation of PPMIU and Addition of GRM)

Annex 3 Special Order No. 1 (Creation of TWG)

Annex 4 PDC Executive Committee Resolution No. 1 (PCIP endorsement for sweet potato inclusion in the PRDP)

Annex 5 Annual Financial Requirements

Annex 6 List of Cooperatives

PANIQUI Aduas PMPC, Barang PMPC, Cayanga PMPC, Hacienda Macabaga Agrarian Ref. Beneficiaries MPC, Mabuhay Tablang Marketing Coop, New Dapdap Farmers Marketing Coop, New Paniqui Golden Harvest PMPC, Paniqui Buklod Diwa MPC, Paniqui Trifed MPC, Raniag MPC, Samahan ng Magsasaka ng Tarlac Producers Coop, Western Paniqui Farmers & Livestock Raisers Marketing Coop, Western Community Primary MPC GERONA Abagon Compact Farm & Seed Growers MPC, Mushroom Growers Producers Coop, New Matayuncab MPC, Oloybuaya Farmers Producers Coop, Poultry Farm Management Service Coop, Prosperity MPC, San Agustin Busilak MPC, Villa Paz PMPC CAMILING Bilad PMPC, Bobon Caarosipan MPC, Cabanabaan MPC, Camiling FACOMA MPC, Camiling Grains PMPC, Pindangan 2nd MPC CONCEPCION Asucal PMPC, Binhin ni Abraham Producers’ Coop, Bountiful Harvest Producers Coop, Calius Gueco Farmers Producers Coop, Christian Era Producers Coop, Concepcion Calamansi Growers & Rice Producers Coop, Concepcion Farmers Producers Coop, Concepcion Seed Growers Producers Coop, Concepcion Sweet Potato Growers Producers Coop, Golden Grain Farmers MPC of Concepcion, Jefmin Farmers MPC (JEFFA-MPC), Kabutihan Mushroom & Organic Vegetables Producers Coop, Lilibangan-Magao-Castillo (LIMACA) Producers Coop, Macangcong MPC, Inc., New Parulung Kapit Bisig MPC, Original 1989 Sugarcane Beneficiaries Producers Coop, Pagtatagumpay Producers Coop, Pando Agri-Inputs Producers Coop, Samahang Magsasaka ng Pao Producers Coop, Sta. Monica Farmers Producers Coop, SAMACO-Malupa Farmers MPC, Sanvic Raisers MPC, Sta. Cruz Farmers Producer’s Coop, Sta. Monica Farmer’s Producers Coop, Talimundoc Marimla MPC, TG-32 Irrigation Service Coop, Tinang SN MPC, Inc, KASAKA Farmers Producers Coop


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Annex 5 Annual Financial Requirements

Value Chain Segments

& Services

Proposed

Intervention

Annual Financial Requirements (PhP)

2015 2016 2017 2018 2019 Total

INPUT SUPPLY

Upgrading of existing Tissue culture and disease indexing laboratory that will produce Clean Planting Materials (CPM)

1,250,000.00 1,250,000.00 1,250,000.00 1,250,000.00 6,500,000.00

Establishment of nursery, and net houses for the propagation/ production of clean planting materials (CPM)

1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 6,000,000.00

Accreditation of CPM growers

243,015.00 225,015.00 468,030.00

Establishment of organic fertilizer production plant

650,000.00 2,450,000.00 1,250,000.00 650,000.00 5,000,000.00

Continuing education of farmers and technology training

450,000.00 450,000.00 450,000.00 450,000.00 1,800,000.00

Participatory technology demonstration on the use of organic fertilizer

67,000.00 67,000.00 67,000.00 200,000.00

Sub Total 19,968,030.00


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Value Chain Segments

& Services

Proposed

Intervention

Annual Financial Requirements (PhP)

2015 2016 2017 2018 2019 Total

PRODUCTION

Improvement of technical knowledge

450,000.00 450,000.00 900,000.00

Extension of Credit Facilities

170,000.00 170,000.00 340,000.00

Infrastructure 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 8,000,000.00

Farm Production Machineries

11,000,000.00 11,000,000.00

Sub Total 20,220,000.00

TRANSFORMATION/ PROCESSING

Provision of Custom Service and Establishment of Processing Center and Storage Facility for Sweetpotato in the Province of Tarlac

38,815,548.43

38,815,548.43

MARKETING Improvement of Existing Farm to Market Road Areas

145,131,687.10

145,131,687.10

Establishment of trading Centers

1,500,000.00 1,500,000.00 3,000,000.00

SUPPORT SERVICES Research and Development

250,000.000

250,000.000

250,000.000

250,000.000

1,000,000.00

Sub Total 167,538,687.10

GRANDTOTAL 268,035,265.53


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