provincial commodity investment plan (pcip)of+misamis+oriental+(cardava... · provincial...

PROVINCIAL COMMODITY INVESTMENT PLAN

(PCIP)

TABLE OF CONTENTS

Title Page Table of Contents ................................... i-ii List of Tables & Figures ................................... ii Acronyms ................................... iii Overview of the Philippine Rural Development Project ................................ .... 1 Provincial Commodity/ies Investment Plan (PCIP) ................................... 1

I. DEVELOPMENT BACKGROUND ................................... 1-7 Development Issues and Concerns ................................... 7

II. DEVELOPMENT VISION AND FRAMEWORK OF THE PROVINCE Vision ................................... 8 Mission ................................... 8 Provincial Development Directions ................................... 8-10

III. PRIORITY COMMODITY CHAIN DEVELOPMENT Commodity Value Chain 1: Cardava Banana A. Commodity Profile 1: Cardava Banana ................................... 11-19

B. Investment Plan ................................... 20 C. Gap/Intervention Matrix : Cardava Banana ................................... 21-29

Commodity Value Chain 2: Cassava Granules A. Commodity Profile 2: Cassava ................................... 30-36 B. Investment Plan ................................... 37 C. Gap/Intervention Matrix: Cardava Banana ................................... 38-45 Commodity Value Chain 3: Abaca Fiber A. Commodity Profile 3: Abaca ................................... 46-50 B. Investment Plan ................................... 51 C. Gap/Intervention Matrix: Cassava Granules ................................... 52-56

Commodity Value Chain 4: Cacao Beans D. Commodity Profile 4:Cacao ................................... 57-64 E. Investment Plan ................................... 65 F. Gap/Intervention Matrix: Abaca Fiber ................................... 66-71

IV. INSTITUTIONAL ARRANGEMENTS FOR PRDP

FUNDING A. Implementation/Implementation Supervision ................................... 72 B. Organization and Management ................................... 73-74 C. Monitoring and Evaluation ................................... 74 D. Social and Environmental Safeguards (SES) ................................... 74-75

V. PDC and SP RESOLUTION ENDORSING THE PCIP ................................... 76 and THE PLGU COMMITMENT FOR BUDGET COUNTERPARTING

LIST OF TABLES

Table 1: Growth Area Cluster and Its Respective Municipality/City Coverage .......... 3 Table 2: Means of Transportation and Estimated Travel Times from CDO to Major Cities (vice-versa) .......... 3 Table 3: Top 5 Commodities of Mis. Or. In terms of Area Utilization .......... 5

Table 4: Poverty Incidence in Mis. Or. .......... 6-7

Table 5: Existing & Expansion Area of Cardava Banana .......... 16

Table 6: LGU Ranking Base on EVSA of Cardava Banana of Mis. Or. .......... 17-18

Table 7: PCIP Gap Matrix Cardava Banana Value Chain in Mis. Or. .......... 21-29

Table 8: Existing & Expansion Area of Cassava in Mis. Or. .......... 33

Table 9: LGU Ranking Base on EVSA Matrix for cassava .......... 34-35

Table 10: PCIP Gap Matrix Cassava Value Chain in Mis. Or. .......... 38-45

Table 11: Existing & Expansion Area of Abaca in Mis. Or. .......... 48

Table 12: LGU Ranking Base on EVSA Matrix for Abaca .......... 49

Table 13: PCIP Gap Matrix of Abaca Fiber Value Chain in Mis. Or. .......... 52-56

Table 14: Existing and Expansion Area for Cacao in Mis. Or. .......... 62

Table 15: LGU Ranking Base on EVSA Matrix .......... 63

Table 16: PCIP Gap Matrix Cacao Value Chain in Mis. Or. .......... 66-71

List of Figures

Figure 1: Map of Northern Mindanao ......................... 1 Figure 2: Map of Misamis Oriental ......................... 2 Figure 2: Map Showing the Congressional District of the Province ......................... 2 Figure 3: GYBE Development & Governance Framework ......................... 10 Figure 5: VCA Map of Banana ......................... 13 Figure 6: EVSA Map of Cardava Banana in Mis. Or. ......................... 19 Figure 7: VCA Map of Cassava ......................... 31 Figure 8: Map Showing the Vulnerability & Sustainability of Cassava ........................ 36 Figure 9: VCA Map of Abaca ......................... 50 Figure 10: VCA Map of Cacao Fermented Beans & Butter in Export Market ......................... 58 Figure 11: VCA Map of cacao in Domestic Market ......................... 59 Figure 12: EVSA Map of Cacao in Mis. Or. ......................... 64

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ACRONYMS PRDP-Philippine Rural Development Project MRDP-Mindanao Rural Development Program PCIP-Provincial Commodity Investment Plan I-PLAN – Investment in Agriculture and Fisgery Modernization Plan Planning at the Local and National Levels I-BUILD – Intensified Building of Infrastructure and Logistics for Development (Infrastructure Development) I-REAP- Investment in Rural Enterprise and Agriculture and Fisheries Productivity (Enterprise Development) I-SUPPORT – Implementation Support to PRDP (Program Support) GRDP- Gross Regional Domestic Product GYVBE – Governor Yevgeny Vincente Beja Emano DRR/CCA – Disaster Risk Reduction/Climate Change Adaptation PDPFP – Provincial Development Physical Framework Plan VCA – Value Chain Analysis KFI – Kennemer Food International CSF – Common Service Facilities FMR- Farm to Market Road PLGU – Provincial Local Government Unit MLGU – Municipal Local Government Unit RIC-Regional Industrial Center PEZA – Philippine Economic Zone Authority IKS – Indigenous Knowledge System VCA – Value Change Analysis GBDA – Gingoog Bay Development Area ( Magsaysay, Gingoog City, Medina, Talisayan & Balingoan) MISORET – Misamis Oriental Eastern Town ( Balingasag, Lagonglong, Binuangan, Salay, Sugbongcogon & Kinoguitan) CLAJAVETA – Claveria, Jasaan, Villanueva & Tagoloan GALILEO – Gitagum, Alubijid, Libertad, Initao, Laguindingan, El Salvador & Opol MANLUNA – Manticao, Lugait and Naawan CBOFP – Community Based Organic Fertilizer Plant GAP – Good Agricultural Practices TOT – Training of Trainers GMP – Good Manufacturing Practices CSF – Common Service Facilities FMR – Farm to Market Road DOST – Department of Science and Technology ATI – Agricultural Training Institute DTI – Department of Trade & Industry DOLE – Department of Labor and Employment CDA – Cooperative Development Authority MFI – Micro Financial Institution DA – Department of Agriculture PMMF – Plant Materials Multiplier Farm IEC – Information Education Campaign PPA – Program Project and Activities

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Overview of Philippine Rural Development Project The Philippine Rural Development Project (PRDP) is a 6-year national government platform for an inclusive, value-chain oriented, and climate resilient agriculture and fisheries sector.

It is the upscale version of the Mindanao Rural Development Program (MRDP) where new innovations are introduced to address the present demand of times especially climate change to make rural development more effective. The Program is jointly funded by the World Bank, National Government and the Local Government Units.

Provincial Commodity Investment Plan (PCIP) PCIP is one of the major components of PRDP. It is a strategic plan that rationalizes the interventions within the various segments of the value chain of commodities that are of significance to the province and that will contribute to the national goals of the agriculture and fishery sectors.

It is a 3-year rolling consensus plan between the DA and PLGU based on the value chain analyses of the commodities conducted with strong participation of the various stakeholders in the chain.

The PCIP shall be the basis for PRDP’s I-BUILD & I-REAP in selecting eligible interventions / sub-projects for funding.

The PCIP will be the basis in identifying possible enterprises in which a province decides to make a

package of investments that the DA will provide assistance, with adequate counterpart from the PLGU.

I. DEVELOPMENT BACKGROUND The Province of Misamis Oriental, with its capital city, Cagayan de Oro, is the gateway to Northern Mindanao because of its strategic location. As a regional center, the province supports a large population, which are linked to important inland resource bases, a springboard for intensified economic activity and expanding suburbia. This convergence point of Northern Mindanao is home to several major industries, ports and other infrastructure facilities that spur the agro-manufacturing, trade and services economy of the area. It is surrounded by the land-locked province of Bukidnon to the south which has a vast agricultural production area and by Iligan City on the

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Fig. 1 Map of Northern Mindanao

Gingoog

west, which is host to several heavy industries. Further west is Lanao del Norte with its vast production areas and rich coastal resources; and finally on the north is the island province of Camiguin, the region’s tourism hub. (Fig. 1 Map of Northern Mindanao)

The province occupies a total land area of 3,131.52 square kilometres. When Cagayan de Oro City is excluded for geographical purposes, the province's land area is 3,515.70 square kilometres. It is subdivided into 23 municipalities and 3 component cities. Cagayan de Oro City is a highly urbanized city that is geographically within the province but governs itself independently from it (Fig. 2 Map of Misamis Oriental).

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Fig. 2 Map of Misamis Oriental

District 3-A-CDO

District 3-B-CDO

District 1 Mis. Or.

District 2 Mis. Or.

Misamis Oriental has two (3)

Congressional Districts as shown in

Figure 3. The First Congressional

District comprises the municipalities

from Magsaysay to Balingasag,

including the component City of

Gingoog, while the Second

Congressional District includes the

municipalities from Jasaan to Lugait,

including the landlocked municipality

of Claveria and the new City of El

Salvador City. Cagayan de Oro City,

which is the seat of government has

also two Congressional Districts,

namely, District 3A - comprising the

barangays in the western side of the

city and District 3B - with those

barangays in the eastern side using

the long stretch of Cagayan de Oro

River as demarcation line.

Figure 3. Congressional District of the Province

http://en.wikipedia.org/wiki/Cagayan_de_Oro

As a development strategy, the adjacent municipalities/cities in the province have been clustered

into different growth areas, please see Table 1.

Table 1. Growth Area Clusters and its Respective Municipal/City Coverage

Growth Area Clusters Municipal /City Coverage

Gingoog Bay Development Area (GBDA) Magsaysay to Balingoan

Mis. Or. Eastern Towns (MISORET) Kinoguitan to Balingasag

CLAJAVETA Claveria, Jasaan, Villanueva and Tagoloan

GALILEO Gitagum, Alubijid, Libertad, Initao, Laguindingan, El Salvador City and Opol

MANLUNA Manticao, Lugait and Naawan

The Province of Misamis Oriental is linked to the Province of Agusan del Norte and the Province of Lanao del Norte through the Butuan-Cagayan de Oro-Iligan Road (BCIR). BCIR connects the cities of Butuan, Gingoog, Cagayan de Oro and Iligan.

Misamis Oriental is likewise linked to the Island Province of Camiguin, a major tourist destination,

through the port of the municipality of Balingoan. Regular ferry services from Benoni Port of Camiguin to the Port of Balingoan contribute much to the development of tourism industry and provide an avenue for expansion on tourism destinations in Misamis Oriental. The province is also connected to the province of Bukidnon where large volume of agricultural goods and other products are sourced via the Misamis Oriental - Bukidnon Road stretching from Puerto, Cagayan de Oro City.

Table 2. Means of Transportation and Estimated Travel Time

from Cagayan de Oro City to Major Cities (vice-versa)

Point of Destination

Land Sea Air

Manila

38 hours via Surigao

24-30 hours

1 hour and 20 minutes

Cebu 8 hours 30 minutes

Davao

8 hours via Bukinon

35 minutes

10 hours via Butuan

Cotabato 9 hours via Bukidnon

General Santos City

10 hours via Bukidnon

Iligan 2 hours

Butuan 5 hours

Surigao 8 hours

to transport their farm products to Gingoog market on the east and to Cagayan de Oro City on the west. Around 45 kilometers of road needs to be paved and should be given the highest priority to stabilize should be given the highest priority to stabilize food production and supply for Misamis Oriental. Table 2 illustrates that the province is accessible by air, land and water transportation to Manila in Luzon, Cebu for Visayas and the nearby key cities in Mindanao such as Davao, Iligan, Butuan, Surigao Cotabato and General Santos City.

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The PHIVIDEC-Alae By-Pass Road project is one segment of Cagayan de Oro Alternate Highway and one of the priority projects of the provinces of Misamis Oriental and Bukidnon. It will complement the Mindanao Container Terminal (MCT) and will serve as By-Pass Road from Misamis Oriental to Bukidnon without passing Sayre Highway. The main internal route for the province is the Gingoog-Claveria-Villanueva Road which is classified as national secondary road. Stretching from the city of Gingoog, it passes through the hinterland municipality of Claveria, the “food basket” of Misamis Oriental, down to the municipality of Villanueva where bustling industrial development begins onward to the east and the west of the province. This route will enable farmers

Economic Profile There is an economic complementation and synergy between the surrounding municipalities of the

province and Cagayan de Oro City. The Province is designated as the Regional Industrial Center (RIC) with the presence of the PHIVIDEC Industrial Estate, the country’s oldest and largest industrial estate covering an area of some 3,000 hectares within portions of Tagoloan and Villanueva municipalities which are the two most immediate municipalities east of Cagayan de Oro City. An Economic Zone is also operational under the Philippine Economic Zone Authority (PEZA) at Jasaan municipality. Two facilities dominate the landscape in these areas, the 210 MW Coal-Fired Mindanao Power Plant (STEAG Power Incorporated) and the Mindanao Container Terminal (MCT) at the municipality of Tagoloan. The power plant located adjacent to the Philippine Sinter Corporation in Villanueva municipality was established to attain stable supply of electricity in the region and Mindanao, to avert potential power shortages in the short- to medium-term, with the foreseen entry of more industries.

In support to improving the market chain for major products and the flow of trade in and out of the region, the MCT with its 30-hectare container yard is expected to serve any point in the Asia Pacific Rim and the United States. Aside from the Cagayan de Oro Base Port, there are 19 other government and private ports in the province. Meanwhile, the future establishment and operation of the all-weather Laguindingan International Standard Airport at the western portion of the province will make possible the entry of wide-bodied aircrafts which in effect will increase cargo capacity per flight; encourage more production of high value crops e.g. temperate type vegetables, cut flower, fruits; and provide access to more domestic and international markets.

The Province of Misamis Oriental is a major contributor to the regional economic growth and development. In 2011 Gross Regional Domestic Product (GRDP) was P367.1B, with the service sector accounting for 40.7%; followed by agriculture and industry with 31.4% and 27.9%, respectively. From 2001 to 2007, the highest DTI-monitored investments in Misamis Oriental amounted to almost Php16 Billion, with an average of Php8.8 Billion annually or an average of 49.07% of total investments in Region 10. Agricultural Profile

Misamis Oriental has a total agricultural area of 181,410.311 hectares or 52% of its total land area

which is 351,570 hectares, which exclude Cagayan de Oro City. Gingoog has the biggest agricultural area

covering 33,670 hectares followed by Claveria with 26,055 hectares, the biggest land among the

municipalities, and Binuangan having the smallest agricultural land area of 1,318 hectares.

With the passage of the Agriculture and Fisheries Modernization Act (AFMA) or R.A. 8435, a

Strategic Agriculture and Fisheries Development Zone (SAFDZ) was identified and delineated. In 2011, the

province came up with a total SAFDZ area of 130,683.45 hectares that constituted 72% of the total

agricultural area. Issues/problems in the SAFDZ include lack of capital for production, tennurial problems,

land conversion, high cost of agricultural inputs, low quality of product due to lack/inadequate of PHF& lack

irrigation facilities, shifting to other crops, unpredictable weather condition resulting to landslides, soil

erosion/siltation, occurrence of pest and diseases, lack of water supply for vegetables garden/small

irrigation facilities, bad FMR, land conversion for industrial purposes, lack of processing technology, low

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market price, denuded and depleted production area and not fully utilized areas for improved forage and

pasture for livestock.

Crops During the commodity prioritization the top fifteen commodities of the province base on the submission of the different municipalities and using the criteria on suitability 20%, market potential 40% and numbers of growers/producers 40% were coconut, corn, banana, cassava, rice, poultry, vegetables, bangus, cacao, goat, cattle, coffee, abaca, papaya and mango. Table 3. Top 5 Commodities of Misamis Oriental in Terms of Area Utilization Municipality Agricultural

Area SAFDZ Coconut Corn Cassava Banana Rice

All types Cardava Magsaysay 6,163 1,064 5,316 299 6.5 252 50 202.5 Gingoog City 33,670 34,444 29,168 1,516 217 1,287 730 654.5 Medina 6,112 4,862 5,929 134 91.5 46 20 Talisayan 10,143.372 8,723 5,718 87 10 280 75 Balingoan 3,316.099 2,591 2,186 88 158 66 33 Kinoguitan 2,018 1,125 2,246 108 75 200 55 Sugbongcogon 1,919 1,661 1,638 146 63 117 30 Binuangan 3,042 1,575.50 1,354 186 20 19 40 Salay 6,328 6,330 4,613 282 175 145.5 75 10 Lagonglong 4,902 4,873 3,368 221 34 500 150 169.25 Balingasag 12,158 12,449 5,148 838 250 840 220 553.4

Jasaan 5,900 6,704 3,943 657 55 1,148 250 125

Claveria 26,055 9,178 651 287 3,762.5 252 245 693

Villanueva 2,813 679 258 6,080 165 669 110 192

Tagoloan 4,080 1,500 1,296 566 65 606.5 336.25 27

Opol 13,641 1,331 1,767 4,702 235 874 546.5 350

El Salvador 6,579 1,200 1,642 1,117 6 551 142.25 101

Alubijid 6,391 4,938 3,265 296 194 403 350 151

Laguindingan 1,278.66 610 2,100 562 72 59 26

Gitagum 3,362.68 2,609.15 2,202 376 48 24

Libertad 2,161 2,153 1,739 567 15 90 45

Initao 6,398 9,301 3,911 912 273.5 135

Naawan 3,986 2,211 3,546 159 440 220 86.43

Manticao 6,380.75 5,599.60 4,112 1,173 29 360.25 130 104.5

Lugait 2,612.75 2,972.20 2,995 186 3 333.25 325

Total 181,410.311 130,683.45 100,215 21,545 5,610 9,905.5 4,389 1,439.5

Table 3 recorded total agricultural areas, SAFDAZ area and the top five commodities of the

province in terms of area utilization, namely coconut, corn, cassava, banana and rice.

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However, other priority commodities of the province found to be suitable and once, top producing

product of the province but it goes down in 1990 because of unstable and low price were abaca and cacao.

Because of its great export potential market the above mention commodities were rehabilitated.

In 2010 NEDA KR 2 funded the abaca mechanization and marketing project because private investors

planted abaca around 1,500 hectares at Claveria. About 4 IP groups of Salay established 17 hectare abaca

production as their livelihood which was funded by MRDP-CFAD.

The present administration under the leadership of Governor Yvegeny Vincente B. Emano has signed a MOA with KFI to promote cacao production in Mis. Or. The direction of the province is to develop 6,000 hectares of cacao farm. The province will provide the seedling and fertilizer to the farmers and KFI will supply the seedling and buy the cacao beans.

Poverty Incidence and Malnutrition Incidence

Base on NSCB record poverty incidence of the province was 32.4%, the highest poverty incidence

is in Magsaysay of 61.8% and the lowest is Opol of 27.3. The top fifteen municipalities’ according to poverty

incidence Magsaysay 61.8%, Initao 53.6%, Naawan 53.4%, Libertad 51.3%, Alubijid 50.9%, Binunagna &

Claveria 49.7%, Lagonglong 49.4%, Kinoguitan 48.9%, Gingoog City 48.7%, Balingasag 48.4%, Manticao

48.2%, Balingoan 48.1%, Gitagum 47.3%, Laguindingan & Talisayan 44.6% and Lugait 42.8%.Malnutrition

incidence of the province is 5.61%, the highest is in Magsaysay and the lowest is in Opol 2.16%. Base on

the above mention situation of the province intervention must be place in Magsaysay and less be given to

Opol.

Table 4. Population and Poverty Incidence of Misamis Oriental MUNICIPALITY POPULATION NO. OF

HOUSEHOLD POVERTY

INCIDENCE (%)

MALNUTRITION INCIDENCE

(%)

Magsaysay 33,323 6,524 61.8 13.48

Gingoog City 121,902 23,850 48.7

Medina 33,618 6,601 37.9 7.35

Talisayan 23,289 5,208 44.6 6.84

Balingoan 10,175 1,928 48.1 6.55

Kinoguitan 13,201 2,043 48.9 8.91

Sugbongcogon 10,628 1,861 44.1 7.29

Binuangan 6,765 1,394 49.7 7.99

Salay 27,591 5,858 40.8 4.97

Lagonglong 19,303 3,860 49.4 4.13

Balingasag 68,649 14,307 48.4 7.36

Jasaan 51,690 10,370 37.7 3.81

Villanueva 44,544 5,784 40.2 7.79

Claveria 51,004 10,188 49.4 2.90

Tagoloan 69,275 13,855 33.6 4.62

Opol 52,108 12,731 27.3 2.16

El Salvador 48,059 10,381 41.1 5.91

Alubijid 31,033 6,753 50.9 5.01

Laguindingan 23,291 5,496 44.6 2.43

Gitagum 19,876 3,588 47.3 4.50

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MUNICIPALITY POPULATION NO. OF HOUSEHOLD

POVERTY INCIDENCE

(%)

MALNUTRITION INCIDENCE

(%)

Libertad 12,373 2,323 51.3 4.96

Initao 29,331 6,978 53.6 6.75

Naawan 21,278 4,335 53.4 3.82

Manticao 28,640 6,018 48.2 5.35

Lugait 20,100 4,278 42.8 6.14

Misamis Oriental 871,046 176,512 32.4 5.61

Source: Poverty Incidence, Population & No. of Household -NSCB 2012 Malnutrition Incidence – PNO 2012

Development Issues and Concerns

Physical Resources

Land Degradation

Deforestation & Soil Erosion

Irresponsible extraction of mineral resources (metallic & non-metallic)

Flooding

Pollution

Air and water pollution increase generation of solid waste

Urban encroachment and Resource Use Conflict Economy

More investments for tourism, agri –industry and infrastructure –roads

Food Security and Rural Development

Low Income

32% Poverty incidence

Increasing Unemployment

Access to Capital

More needed investments for eco-tourism destination projects/industries Infrastructure, Transportation and Access

Sub-standard Roads

Unpaved roads

Road Safety

Poor accessibility condition in interior barangays

Farm to market roads

Access to level II and III water supply

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II. DEVELOPMENT VISION AND FRAMEWORK OF THE PROVINCE

Vision Misamis Oriental is envisioned to be the leading eco-tourism destination and center for economic growth with a healthy environment and cultured, prosperous, resilient, and empowered people in a stable and enduring peace and order situation.

Mission An effective and efficient governance ensuring the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self-reliant scientific and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among residents, maintain peace and order, and preserve the comfort and convenience of Misamis Oriental inhabitants (RA 7160).

Provincial Development Directions Tourism is the force that will propel Misamis Oriental into an economic powerhouse. Without sacrificing agriculture and industry, the GYVBE administration believes that tourism is the best option for the province to attain sustainable growth. It is an approach to poverty alleviation, empowerment and people participation. One cannot expect agriculture to remain the main source of income in the province considering that with only an average landholding size of half a hectare for a family of five, no one can survive on farming alone. On the other hand, the province of Misamis Oriental are endowed with natural tourism resources such as cascading falls, lakes, hot and cold springs, rivers, white islands, fine beaches and resorts - natural endowment that have remained untapped for so many years. EIGHT PILLARS OF ECO-TOURISM DEVELOPMENT AND GOVERNANCE FRAMEWORK OF MISAMIS ORIENTAL (Fig. 4 Pillars of Eco-Tourism Development)

1. Environment. Eco-tourism is the guiding principle of this program wherein Tourism infrastructure is being built without destroying the integrity of the environment. The environment is the very foundation of tourism. The protection of the remaining watershed areas of Misamis Oriental shall be promoted. Tree growing and adopt-a-forest shall be pursued following the concepts set forth by the National Greening Program of the national government. Bilateral and multi-lateral agreements shall be forged to further protect and sustain the forests, seas, buffer zones and areas of living. No tourism industry will survive if the environment is allowed to be harmed.

2. Infrastructure. In the past, local and international investors have shied away from investing money in tourism in the province due to the bad conditions of provincial roads and highways. One survey revealed that most provincial roads which are more than a stretch of 1,000 kilometers have not been either developed or maintained properly. Road development and maintenance is a priority program and needs a huge investment Misamis Oriental DRR/CCA Enhanced PDPFP 2013-2018 Chapter II: Vision and Development Directions II-2 that requires innovation in funding support and resource mobilization. To pursue tourism, the province must have good and safe roads for travel and access.

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3. Education. Government should use its resources to give the people the best opportunities. One such opportunity is education. The aim is to provide each individual such opportunity. It is an accepted fact that tourists flock in areas where they can be understood and experience professional treatment. An education program shall be established that will cater the increasing demand in tourism related services.

4. Agriculture - This administration will pursue an agriculture program that will focus on Research and Extension or R & E not R&R. The eastern section of the province especially Gingoog City, has fertile lands, abundant water supply and an industrious people with rich heritage of Indigenous Knowledge Systems (IKS) on farming among the Lumads .It is a potential of vast opportunity for agricultural development addressing the food security gap of the province. It is but unfortunate that Gingoog City is considered among one of the poorest cities, where almost half of its residents living below the poverty line. In the entire province, at least 72,000 families live in similar very poor conditions (majority are farming households). To improve the agriculture sector, the promotion of organic agriculture, IKS and diversified sustainable agricultural practices and the establishment of agricultural complex (such as crops center) for crops and livestock development including stock farms shall be pursued. Improvement of the said sector will definitely increase the quality of the lives of the poor families who are heavily reliant on it.

5. Health. One cannot attract tourists to the province, if it cannot boast of a healthy citizenry. More Investments in a health program that would give the poor free access to medicine, hospitalization and health care shall be carried out. While the support to the program of providing health insurance shall continue, an assessment shall also be undertaken , if this indeed is the best way to spend PhP200 million annually. Transparency in the procurement of medicines and medical equipment shall be major policy. Basic health services shall be delivered direct to the barangay. As much as the provincial government can afford to do so, all health personnel of the province shall be out on the field making sure that health services are given to the poor, especially in far-flung barangays.

6. Transportation. Transportation is very important in the delivery of goods and basic social services to the remote barangays. Travelling to interior parts of the province is not so efficient and unreliable especially those routing the national highway using “habal-habal” with unprofessional drivers. Public utility jeepneys/buses going to interior parts are rare due to bad road condition and the terrain of the province. With the development of the province’s potential tourist destinations and well maintained provincial and barangay roads, the provincial government intends to establish transport cooperatives in every municipality that will cater to the transportation needs of the communities as well as travellers, traders, businessmen and social workers. For tourism to take off, transport system shall be affordable, safe and convenient. To expand and broaden the benefits of ecotourism, the said transport system preferably shall be managed and owned by the communities themselves in the form of cooperatives.

7. Cooperatives. The ultimate goal of the tourism program is not only to make tourists happy nor to

make the province generate more revenues but rather for the people’s lives to improve. As such, community based cooperatives are encouraged to invest their time and resources in tourism. Technical and financial support shall be provided to these cooperatives, with the support of the Sangguniang Panlalawigan.

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8. Peace & Order. No one would dare come to the province if their lives are at risk. A peaceful and orderly Misamis Oriental therefore completes the pillars of the Kiosko sa Turismo Misamis Oriental Program. Particular emphasis is in the First District where the peace and order situation is often threatened by the conflicts between the law enforcement agencies and the brothers and sisters who have taken up arms and rebel against the government. Local peace talks with all concerned sectors shall be pursued. The ulamas (tribal chieftains), the priests, pastors, the lumads and all churches of different denominations in the province shall be convened to sit down and help find a just and lasting peace for the province. The Provincial Peace and Order Council with the assistance of the Sangguniang Panlalawigan shall ensure and actively seeks lasting solutions to the said problem. Fig. 4 GYVBE DEVELOPMENT & GOVERNANCE FRAMEWORK

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III. PRIORITY COMMODITY CHAIN DEVELOPMENT Commodity Value Chain 1: Cardava Banana

A. Commodity Profile: Cardava Banana Product Description

There are three key product subsectors in the cardava banana sector, namely:

Banana chips: Chip products may be sweetened, honey-dipped, unsweetened, cinnamon- or chocolate-flavored and salted. Chips are available in various cuts such as whole, halves, quarters, diagonals, diced and broken cuts. Products are mainly geared for the export market.

Cardava banana snack food: The most popular snacks made of cardava are the “banana cue” (whole fried bananas dipped in brown sugar and sold in bamboo skewers) and “turon” (fried banana spring rolls). Another popular cardava-based snack is the “maruya” or banana fritters. These are usually consumed as mid-afternoon snacks. In the domestic market, most of the cardava-based snack food is produced and traded by street vendors, school canteens, and restaurants. During the recent years, at least three manufacturing companies in Mindanao have started the export of frozen banana snack food (turon, boiled banana to countries with significant Filipino and Asian population.

Fresh cardava banana soild in domestic retail outlets which are made into various traditional Filipino desserts and dishes such as the “pochero”.

Davao Region is the main producer of banana chips, Northern Mindanao including Misamis Oriental is the largest supplier of fresh cardava for the retail markets and local cardava based snack food in key urban areas in the Philippines. Although Soccksargen has companies engaged in banana chips, a greater percentage of its production is sold fresh either to banana chips exporters or to traders dealing with the

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Cooking bananas are categorically known as balbisiana cultivars. There are numerous cultivars under this type such as Cardava, Abutan, Inabaniko, Turangkog, Sabang puti, Mundo, Gubao, Saba sa Hapon and Bigihan. However, the most common cultivar with both social and economic importance is the Cardava or Saba. Cardava has the largest and tallest stem attaining a height of four meters. Bunches are big with 8 to 16 hands having 12 to 20 fingers per hand. The fruits are short and stubby and highly angular. The skin is thick and yellow when ripe. The flesh is white, starchy, and fine textured, making it ideal for cooking and processing.

fresh retail markets. Caraga also produces banana chips with a significant percentage geared for the export market. Maguindanao in ARMM is a key supplier of fresh banana for banana chips companies in Davao. Production in other provinces of ARMM is sold fresh in the local market. All of the regions have thriving cardava-based snack food businesses consisting mainly of street vendors from ambulant vendors selling boiled bananas in bus stations to turon and maruya stalls near schools, parks, and malls.

Other by-products of the cardava banana are the catsup, vinegar, and flour. In Lanao del Norte, one agrarian reform cooperative is engaged in the manufacture of catsup. Production is still low and market is currently limited within the locality and neighbouring provinces (via trade fairs).

The “puso” or the dark red inflorescence of the banana is also edible. Aside from cooking the “puso” into the traditional “ginataan” or “kilawin”, it can also be made into vegetarian patties.

Banana peels are traditionally used as feeds or converted into organic fertilizer. Another alternative use of banana peels is as meat substitute and extenders. It can also be utilized as a material for making paper and paper boards. The leaves are used as packing materials in markets and traditional wrappings of native dishes.

Northern Mindanao, including the province of Misamis Oriental is the dominant player in fresh banana for retail markets in Manila, Cebu and other urban areas. Most of its fresh banana in Misamis Oriental is ship out to Manila and Cebu via Cagayan de Oro. Similar to the procurement flow for fresh cardava for banana chips exporters, bananas are collected weekly from farmers at their farms or these are brought at the nearest buying agents. Assemblers usually work with buying stations and agents and pick up the bananas collected weekly or twice a week. The assemblers sell the bananas to consignees based in key urban areas. The consignees sell the bananas to wholesalers and jobbers who, in turn, distribute to wet markets and supermarkets. In the wet markets, the greater percentage goes to the banana cue/turon/ and other cardava-based snack food vendors.

From production areas, mix varieties of bananas are loaded into trucks and then transferred to non-refrigerated vehicles for distribution to various markets. An assessment of the postharvest system revealed that fruit may be handled as many as 3 times before shipment and up to 3 times before it reached the final consumer. The shipper and consignee are the key players in the supply chain for they handle the biggest volume of bananas. The greatest risk occurs during sea transport for 2 days because of high transit temperatures and the bulk-loading practice. This can result in over ripening since a week has already elapsed since harvesting.

In the province has an existing export Banana Chip Factory at Opol, Misamis Oriental the BG Fruits and banana consolidators in each municipality.

12

The VCA Map as shown in Figure 5, describe the flow of commodities starting from input segment, production, processing, trading, distribution up to final sales, by various players its important function in every segment.

Figure: 5 VCA Map of Banana Source: VCA on Banana

Production Trend

Bananas (Musa spp.), including dessert banana, plantain, and cooking banana, are the eighth most important food crop in the world, and the fourth most important in the least developed countries (FAOSTAT, 2013). Bananas are produced in 135 countries and territories across the tropics and subtropics. The vast majority of producers are smallholder farmers who grow the crop for either home consumption or for local markets (less than 15% of the global production of more than 100 million MT is exported). The international banana export trade (17 million MT approximately) is worth some US$ 7 billion per year.

14

In 2012, Philippines were the third largest banana producer in the world after India and China. The country accounted for about 9% of the global banana production. World production in 2012 decreased by 12% over 2010 data. This was primarily due to crop destruction caused by typhoons and the outbreak of diseases. Philippines are the only producer of cardava banana. Other countries such as Thailand, Indonesia, Ecuador, and African nations have their own local cooking banana varieties. Cardava banana accounts for 41% of the land area planted to banana in the Philippines. The Philippine cardava or saba variety accounted for about 6% of the estimated 47,208,190 MT cooking banana world production in 2010. In 2013 the country cardava production was 2,556,986.05 MT. Luzon and Visayas provinces share 40% of the total Philippine cardava production and 60% was coming from Mindanao. Country’s production volume of cardava banana between 2009 to 2013 decreases by 3%. Mindanao production of 1,525,332.65 Mt. of cardava banana, 32% came from Davap Region. Soccksargen contributed 23% of the total cup lump production. Northern Mindanao had the third highest production volume at 295,655.65 MT, comprising 19% of the Mindanao production. Mindanao production volume decreases only 1%. Davao Region had the highest percentage decrease at 15% followed by Caraga at 8%. ARMM had the highest percentage increase in production volume at 18%. Soccsksargen’s production increased 11% while Northern Mindanao registered an increase of 14% in 2013 over 2009 performance. Top 3 producing provinces in Mindanao in 2013 were North Cotabato 272,733.03 Mt., Davao del Sur 271,165.41 Mt and Lanao del Norte 153,414.20 mt. Davao del Sur caters primarily to banana chips exporters, while Lanao del Norte sells North Cotabato trying to penetrate fresh retail market to have more diversified buyers and plan to set-up plant in four seasons. Mindanao accounted for 41% of the 183,479.00 hectares of land planted to cardava in 2013. Davao Region has the largest area planted to cardava banana at 20,136 hectares followed by Northern Mindanao at 13,076. In 2013 average yield per hectare in Mindanao was 20.26 MT per hectare, which is 45% higher than the national average. The increase due to the combination of improved pest control management, use of clean planting materials (tissue, cultured) and appropriate fertilizer application. Northen Mindanao cardava production volume of 295,655.65 Mt in 2013 with

14% increase between 2009-2013. Lanao del Norte the top producing province of the

Region contributed about 153,414.20 Mt. or 52% of the Region production in 2013. The

second producing province of Northern Mindanao was Misamis Oriental with production

volume of 70,491 Mt .or 24% of the total Region X production. Total production from

Misamis Oriental was only 46% that of Lanao del Norte, production in Lanao del Norte

and Bukidnon seemed to have reached a plateau during the last 5 years. On the other

hand, production from Misamis Occidental increased by an average of 18% per year and

9% in Misamis Oriental. Among the five (5) provinces in Northern Mindanao, Misamis

Oriental has the largest area planted to cardava. The region’s average yield of 20.26

MT in 2013. Lanao del Norte has the highest yield at 40 MT per hectare while Camiguin

15

had the lowest yield at 4.78 MT. During the five year period, Misamis Occidental

exhibited the highest percentage increase in yield at 68% followed by Misamis Oriental

at 34.6%. This was attributed in the improvements in agronomic practices.

Misamis Oriental has the highest potential to be the top cardava producer in Northen Mindanao if average yield will increase from 16 Mt. to 40 Mt. per hectare since, Misamis Oriental has the highest area devoted to banana which is 4,389 hectares over that of Lanao del Norte which is 3,860 hectares

Misamis Oriental Production Direction The total existing cardava banana is 4,389 hectares, while, the expansion area is 1,870 hectares an increase of 43% by 2019 as reflected in Table 5. The possible area in which processing and infrastructure support to be located will be at Gingoog City for GBDA Cluster, Balingasag for MISORET Cluster, Jasaan for CLAJAVETA cluster, Opol & Alubijid for GALILEO and Lugait for MANLUNA cluster. The elements in choosing the above mention area base on the biggest production area, presence of consolidator and possible proponent group (PG).

Growth Area/

Municipality

Cardava Banana (Has.) Growth Area/

Municipality

Cardava Banana (Has.)

Existing Expansion Total Existing Expansion Total

GBDA GALILEO

Magsaysay 88 12 100 Opol 546.5 55 601.5

Gingoog City 806 133 939 El Salvador 90.25 20 110.25

Medina 85 15 100 Alubijid 403 120 523

Talisayan 70 30 100 Laguindingan 26 50 76

Balingoan 30 20 50 Gitagum 48 30 78

Sub-total 1,079 210 1,289 Libertad 45 45 90

MISORET Initao 135 50 185

Kinoguitan 50 50 100 Sub-total 1,293.75 370 1,663.75

Sugbongcogon 30 70 100 MANLUNA

Binuangan 40 80 120 Naawan 220 30 250

Salay 55 65 120 Manticao 130 50 180

Lagonglong 105 45 150 Lugait 325 325

Balingasag 190 50 240 Sub-Total 475 80 555

Sub-total 470 360 830 Mis. Or. Total 4,389 1,870 6,259

CLAJAVETA % Increase 43

Jasaan 420 580 1,000

Claveria 105 200 305

Villanueva 210 50 260

Tagoloan 336.25 20 356.25

Sub-total 1,071.25 850 1,921.25

Table 5. Existing and Expansion Area of Cardava Banana

16

Since government resources is limited, project investment must be established in area it is most suitable base on the following criteria; namely 50% vulnerability & sustainability value, 5%, population, 15% poverty incidence, 10% area planted, 10% production and 10% farmers involved. Table 6, revealed the ranking of municipality base on expanded vulnerability and sustainability matrix the top municipality suitable for cardava banana are Gingoog City, Alubijid, Opol, Tagoloan and Lugait.

No. Municipality Poverty

Inci-

dence

Population Area

Planted

No. of

Farmer

Produc-

tion

Old

Compo-

site

Index

Old

Rank

New

Composite

Index

New

Rank

1 GINGOOG CITY 49 121902 806 1209 12896 0.4659 25 0.7015 1

2 ALUBIJID 51 31033 403 605 6448 0.6539 7 0.61311 2

3 OPOL 27 52108 547 820 8744 0.5852 13 0.58279 3

4 TAGOLOAN 34 69275 336 504 5380 0.6582 6 0.56487 4

5 LUGAIT 43 20100 325 488 5200 0.6201 8 0.54332 5

6 INITAO 54 29331 135 203 2160 0.6763 4 0.53112 6

7 VILLANUEVA 40 44544 210 315 3360 0.6731 5 0.52977 7

8 NAAWAN 53 21278 220 330 3520 0.603 10 0.52036 8

9 BALINGASAG 48 68649 190 285 3040 0.5924 12 0.5112 9

10 LAGUINDINGAN 45 23291 26 39 416 0.76 1 0.50811 10

11 GITAGUM 47 19876 48 72 768 0.6967 2 0.48809 11

12 LIBERTAD 51 12373 45 68 720 0.6766 3 0.48355 12

13. MAGSAYSAY 62 33323 88 132 1408 0.5736 15 0.48323 13

14 JASAAN 38 51690 220 330 3520 0.5763 14 0.48319 14

15MANTICAO 48 28640 130 195 2080 0.5719 16 0.46222 15

TABLE 6. LGU RANKING BASE ON EVSA

17


Inci-

dence

Population Area

Planted

No. of

Farmer

Produc-

tion

Old

Compo-

site

Index

Old

Rank

New

Composite

Index

New

Rank

16. EL SALVADOR 41 48059 90 135 1444 0.6188 9 0.46184 16

17. LAGONGLONG 49 19303 105 158 1680 0.5212 23 0.4262 17

18. KINOGUITAN 49 13201 50 75 800 0.556 17 0.42056 18

19. TALISAYAN 45 23289 70 105 1120 0.5475 19 0.41824 19

20. CLAVERIA 49 51004 105 158 1680 0.4747 24 0.41595 20

21. BINUANGAN 50 6765 40 60 640 0.5429 20 0.41008 21

22. MEDINA 38 33618 85 128 1360 0.5237 22 0.39927 22

23. SALAY 41 27591 55 83 880 0.536 21 0.39902 23

24. SUGBONGCOGON 44 10628 30 45 480 0.5483 18 0.39612 24

25 BALINGOAN 48 10175 30 45 480 0.5212 23 0.39206 25

18

Figure 6, Expanded Vulnerability Sustainability Analysis Maps of Cardava Banana in Mis. Or.

19

B. Investment Plan

Provincial Direction for Cardava Banana

The new direction of agricultural development is to increase productivity in order to increase income of farmers, produce sufficient safety and nutritious food without destroying the environment. Another goal in agriculture sector is sustainable and resilient agriculture to combat the present global phenomenon the climate change. To be competitive or ready with globalization by 2015 product value adding is the main concern of the government. This is a great opportunities for farmers and agribusiness entrepreneurs along agricultural value chains to transform commodities into higher value products, a process that can play an important role in poverty reduction. Rural poverty and malnutrition incidence remains high despite considerable progress made. The rural poor, who often depend on agriculture for their livelihoods, can benefit from changes in agriculture, provided as part of the emerging value chain.

Misamis Oriental is an agro-industrial area but basically remain to be an agricultural area because 67% of the total land area is devoted to agriculture and 75% of the population depend on agriculture as main source of income. It is a coco base area covering an area of about 100,215 hectares or 55% of the total agricultural area which is the object of intercrop with banana, cacao, cassava and abaca.

The development direction of the province for cardava banana industry is to be

number one supplier of fresh cardava banana of BG Fruits, banana chip factory at Opol,

this province and fresh banana exporter to Manila, Cebu and local snack processor.

Revitalize small banana chip processor produce banana chips with different variant and

new cardava based product. To be top cardava producer in the Region thru; increase

average yield per hectare from 16 Mt. to 40 Mt.; increase area planted from 4,369

hectares to 1,870 hectares thru intercropping under coconut area, promote sustainable

farming system by adopting organic or natural farming system and at least 75% of the

area planted to banana will GAP Certified.

Promotion of banana in the province will not jeopardize the other equally important crops for food security like corn, rice, vegetables other high value crops that already exist through in force crop zonefication/clustering. The province shall comply with the DA policy of “No conversion of rice and corn areas so as not to affect the program of sustainable rice and corn as major crops of the country. Contour farming is also promoted since some production areas are hilly. An ordinance has been approved to allocate the said project of five (5) Million pesos per year to develop hilly area to prevent landslide and soil erosion. The province will also establish the necessary Climate Change resilient infrastructure projects and post-harvest facilities in support to the identified commodities. The vision of improving the lives of 6,260 banana farmers increase income to 20% and reduce poverty incidence to 11% in the province in 2019.

20

C. Project Intervention Base of PCIP Gap Matrix Table 7. PCIP Gap Matrix Banana value chain in Misamis Oriental

Key Gap/ Constraint in VC Development in the

Province (from the national & regional VCA

results)

Brief Description of Potential Intervention (subprojects:

enterprise or infrastructure, business enabling program,

etc.)

Target Result/ Outcome, including # of farmers/ fisherfolk reached, if

applicable

Target Areas to be covered

(Mun. &Brgys.)

Proposed Lead & Other Players for subproject

Implementation Note: identify the lead player

Estimated Project

Cost

Risk & Risk Management

Remarks Rank

INPUT PROVISION

Access to good quality disease free planting materials

Establishment of Plant Tissue Laboratory with Grow out Nursery and provision of quality planting materials to Community Based Nursery

Two (2) new tissue laboratory with grow out nursery established and operational in each Congressional District

District 1 Sugbongcogon

District 2 Alubijid

PLGU Mis. Or. DOST

3,600,000 R: Farmers still reluctant to use tissue culture planting material. RM: Development and implementation of voucher or similar schemes and lower cost of planting materials. R: Planting materials from established nurseries do not return intended/ projected desirable yields. RM: Application of quality operation standards and quality planting materials with regular monitoring.

Financial Support to the existing and establishment of Community Base Nursery (CBN)

one (1)CBN in each development cluster/growth area

Development Cluster: 1. GBDA- Gingoog 2.MISORET Balingasag 3.CLAJAVETA Jasaan 4.GALILEO Alubijid 5.MANLUNA Lugait

DA, DOST, PLGU, MLGU and PG on Banana Nursery Operators

1,500,000 Same nursery will produce cacao and abaca seedlings

Technical assistance in the operation and management of Tissue Laboratory and Community based nurseries

6 months training of 4 tissue lab operator and 1 Training of nursery /CBN operator

Province Wide PLGU and DOST 175,000

Low willingness among farmers to invest in good quality planting materials

Provision of Planting Materials thru plant now pay later

1000 pcs./hectares with a total of 1,870,000

Province wide PLGU, PG on Banana Nursery Operators and PG on Banana Growers

37,400,000

21


Province (from the national & regional VCA results)



etc.)


applicable


(Mun. &Brgys.)



Estimated Project

Cost


Remarks Rank

Lack of quality organic fertilizer/low level of purchasing power of smallholder

Provision of Fertilizer thru fertilizer subsidy

62,590 bags of fertilizer

Province Wide DA, ATI, PLGU, MLGU, PG on Organic Fertilizer Operators

18,777,000

R: Farmers would not acquire, pay and apply organic fertilizer in their farms. RM: Info campaign to promote benefits and awareness. Enforcement of ordinances/policy to reduce use of chemicals and emissions. Financial services adapted to product cycle and farmer´s cash flow.

Same facilities will provide organic fertilizer to cassava, abaca and cacao PG.

Lack of understanding among farmers on cost benefits of proper and efficient use of fertilizer

Trainings of banana farmers on cost benefits of proper and efficient use of fertilizer

1 Training /year Province Wide DA,ATI, DOST, PLGU, MLGU, PG on Organic Fertilizer Operators and PG on Banana

50,000

Establishment of demo farm showcasing fertilizer management on organic banana production

5 demo site

Development Cluster: 1. GBDA- Gingoog 2.MISORET Balingasag 3.CLAJAVETA Jasaan 4.GALILEO Alubijid 5.MANLUNA Lugait

DA, ATI, PLGU, MLGU, PG on Organic Fertilizer Operators, PG on banana

250,000

Organic Fertilizer suppliers to extend technical assistance to growers /create banana doctors

1 doctor/growth area

250,000

Prepare documentation of best practices

5 documentation /1 per year

50,000

22





etc.)


applicable


(Mun. &Brgys.)



Estimated Project

Cost


Remarks Rank

FARMING/PRODUCTION

Skills and know-how: - To implement GAP/at least

75% of banana area will became GAP Certified

Established Banana Cluster at least 50 hectares compact area and provide facilities needed by the PG to became GAP Certified thru provision of GAP Facilities (Warehouse for equipments, materials and inputs, toilets, washing & eating area for workers)

1 cluster area per municipality of at least 50 hectares/cluster area

GBDA-Gingoog, Talisayan, Magsaysay MISORET – Balingasag, Kinoguitan Lagonglong CLAJAVETA-Jasaan, Villanueva, Tagoloan GALILEO-Alubijid, Opol, Initao MANLUNA-Lugait, Naawan, Manticao

DA, ATI, PLGU, MLGU, PG on Banana

1,500,000

R: Continuity of sporadic farm locations RM: Highlighting of benefits to be acquired from concentrated or clustered farm locations and possible support to the establishment of access and provision of materials. R: Investments from orientation and capability building will not translate to banana farm expansion or increased number of banana growers and processors. RM: Pair orientation with market matching and establishing buyer-producer linkages.

Capacity-building of existing trainers/ potential community-based providers on Good Agricultural Practices (GAP) aligned to resources and learning aptitude of cardava farmers

Two (2) Capability Building Activities conducted

Province Wide DA, ATI, PLGU, MLGU, PG on Banana

50,000

Conduct documentation of best practices and knowledge transfer/ learning and innovation events such as best practices competitions/ search outstanding banana farmers

Conduct 2 documentation on best practices, Search for 2 Outstanding GAP Certified Farmers and give incentives to 2 GAP Certified Farmers


450,000

Establishment of model farm showcasing GAP on banana

5 site Province Wide DA, ATI, PLGU, MLGU, PG

250,000

23

Key Gap/ Constraint in VC Development in the Province (from the national & regional VCA results)


enterprise or infrastructure, business enabling program, etc.)

Target Result/ Outcome, including # of farmers/ fisherfolk reached, if applicable


(Mun. &Brgys.)



Estimated Project Cost


Remarks Rank

Provision of incentives/financial assistance to 5 Technical providers

Cash incentives


600,000

Production site has insufficient of potable water

Construction of Potable Water System Level 2

1 Unit Magsaysay DA, PLGU and MLGU Magsaysay

4,982,210.60 R: Maintenance of PWS RM: Install PG to managed the facility /if manage by LGU pass an ordinance to collect service fees.

PRDP-MLGU procuring entity

2014

Poor farm to market roads resulting to high transport cost in hauling inputs and poor product quality

Construction/Upgrading /Rehabilitation/ Concreting of FMRs

R: Road Maintenance RM: Ordinance to implement tool fees

Gingoog Bay Development Area (GBDA)

Road Concreting Crossing San Miguel to Kalagonoy

5.5 km

Gingoog City

DA,PLGU,CLGU

9,000,000.00

PRDP-CLGU procuring agency

2016

Rehabilitation & Concreting of Malibud-Dinawihan FMR

11.7 km

Gingoog City

DA, PLGU,CLGU

120,954,147.57

2016

Rehabilitation of Mahayahay-Katipunan-Gumabon-Tama Road

11.53 km

Magsaysay

DA,PLGU,MLGU

140,000,000

PRDP-MLGU Procuring Agency

Construction of Kandiis-Tibon-

Tibon Road

4.00 km

Magsaysay

48,000,00

Construction of Damayuhan-

Kauswagan Road

6.57 km

Magsaysay

78,000,000

Upgrading of Cabantian-Tulang

Road

3.00 km

Magsaysay

27,000,000

Rehabilitation of Bonifacio –

Mindulao Road

7.00 km

Magsaysay

63,000,000

Construction of Mindulao - Tama

Road

9.00 km

Magsaysay

108,000,000

Concreting of Magkarila-Sitio

Minabaca to Sibantang

6.00 km

Talisayan

60,000,0000

24

Key Gap/ Constraint in VC Development in the Province (from the national & regional VCA results)

Brief Description of Potential Intervention (subprojects: enterprise or infrastructure,

business enabling program, etc.)

Target Result/ Outcome,

including # of farmers/

fisherfolk reached, if applicable


(Mun. &Brgys.)





Remarks Rank

Concreting of Sitio Laverdad, Poblacion – Mimbilisan – Bugdang FMR

5 km Talisayan DA,PLGU,MLGU

50,000,000.00 . PRDP-MLGU Procuring Agency

Concreting of Mandahilag-Macopa Road 5 km Talisayan 50,000,000.00

Concreting Punta Santiago-Casiboli Road 4 km Talisayan 40,000,000.00

MSORET

Concreting of Mimbule FMR 1.8 km Salay 18,669,229.13 2014

Concreting of Yungod-Mangkita Road 1.5 km Salay 15,000,000.00

Concreting of Saray – Mimbalite FMR 3.5 km Salay 35,000,000.00

Concreting of Guinalaban-Matampa Road 3.5 km Salay 35,000,000.00

Upgrading of Panabol –Buko FMR 1.34 km Kinoguitan 14,461,776.20 2014

Upgrading of Calubo-Poblacion FMR 1.726 km Kinoguitan 20,151,099.26 2014

Concreting of Umagos-Kidalisay FMR 1.5 km Lagonglong 7,000,000.00

Upgrading of Dampil-Pugaan FMR 1.5 km Lagonglong 37,500,000.00

Concreting of Manaol FMR 3 km Lagonglong 14,000,000.00

Upgrading of Manaol-Banlay FMR 5 km Lagonglong 13,000,000.00

Upgrading of Kabulawan – Gaston – Bunal FMR 10 km Lagonglong 25,000,000.00

CLAJAVETA

Upgrading of Santa Ana – Rosario FMR 2.5 km Tagolan 25,000,000.00

Upgrading of Domagooc to Sitio Patrocenio FMR 4 km Jasaan 40,000,000.00

Upgrading of Solana to Sitio Looc FMR 3 km Jasaan 30,000,000.00

Upgrading of Sitio Katu-an, Natubo – Kimamaon Kimaya FMR

5 km Jasaan 50,000,000.00

Upgrading of San Antonio to Sitio Cogon FMR 6 km Jasaan 60,000,000.00

Concreting of San Nicolas –Upper Bobuntogan –Upper San Antonio – IS Cruz Road

16 km Jasaan 96,000,000.00

GALILEO

Upgrading of Jampason- Dagongon FMR, Initao

2.96 km

Initao 26,370,000.00

2014

Upgrading of Gimampang-Aluna-Casilihon FMR, 3.02 km

Initao 27,312,000.00

2014

25


Province (from the national & regional

VCA results)



etc.)


applicable


(Mun. &Brgys.)





Remarks Rank

Upgrading of Canilawan-Cogon FMR

3.2815

Initao DA,PLGU,MLGU

27,619,000.00

PRDP-MLGU Procuring Agency

2014

Upgrading of Sapong-Mamiguis-Bansilang FMR

5.61 Initao 46,165,969.25 2014

Upgrading/ Concreting of Sinalac-Tagpaco FMR

7 Initao 56,000,000.00 2014

Upgrading of Camingawan-Maapo FMR

5.757

Opol 69,084,000.00

Concreting of Tongkalan-Seriwagan-Kimagas FMR

5.56 Alubijid 56,200,000.00

Rehab. and Concreting of Benigwayan – Lourdes – Taparak – Sungay – Tugasnon – Hinigdaan FMR

25 Alubijid & El salvador

300,000,000.00 2016

Rehab. Concreting of Taparak – Sungay – Tugasnon – Benigwayan - FMR

16 Alubijid & El Salvador

200,000,000.00 2016

Upgrading/Concreting of Crossing road Ulab/Kilangit (Prk 1) to existing Concrete pavement road (Prk 2)

2.68 Gitagum 2,680,000.00

MANLUNA

Concreting Patag Talacogon Road

3.5 Manticao 29,750,000.00

Concreting of Bal-ot Road 0.3 Manticao 2,550,000.00

Concreting Pagawan-Suminanap Road

3 Manticao 25,500,000.00

Concreting Pagawan – Sambuyaan Road

2 Manticao 17,000,000.00

Concreting Cabalantian – Kolambugan Road

3.6 Manticao 30,600,000.00

Concreting of Argayoso-Mat-i Road

2.5 Manticao 21,250,000.00

26


Province (from the national & regional

VCA results)



etc.)


applicable


(Mun. &Brgys.)





Remarks Rank

Concreting Tuod Purok 7 0.5 Manticao DA,PLGU,MLGU

4,250,000.00 PRDP-MLGU Procuring Agency

Concreting Paniangan Brgy. Roa 0.7 Manticao 5,950,000.00

Concreting of Balintad-Victory Road

1.5 Manticao 12,750,000.00

Concreting of Magpait – Camanga Road

2.5 Manticao 21,250,000.00

Concreting of Tuod-Pagangon Road

3 Manticao 25,500,000.00

Concreting of Mahayahay - Kilablab

3 Manticao 25,500,000.00

Concreting of Mahayahay - Limonda

3 Manticao 25,500,000.00

Concreting of Donque Hill 3 Manticao 25,500,000.00

Concreting of Bagares St. 0.5 Manticao 4,250,000.00

Concerting of Sabuero St. 0.3 Manticao 2,550,000.00

Concreting of Cementery Road 0.3 Manticao 2,550,000.00

Concreting of Mahayag-Digkilaan 3.5 Manticao 29,750,000.00

Concreting of Sagyawan - Malibato

3 Manticao 25,500,000.00

Macawa -Centro Don Pedro FMR

2.309 Naawan 19,500,000.00

Mat-i Linugos Tagbalogo FM 2.663 Naawan 22,500,000.00

Concreting of Mat-i –Lubilan Road

8.27 Naawan 82,700,000.00

Concreting of Purok Pag-asa – Sitio Taal

4.58 Naawan 45,800,000.00

Concreting of Brgy. Kaluknayan-Brgy. Aya-aya Road

5 Lugait 60,000,000.00

Concreting of Brgy. Aya-aya to Brgy. Betahon Road

3 Lugait 36,000,000.00

Concreting of Brgy. Aya-aya to Sitio Tamao Road

3 Lugait 36,000,000.00

27



Brief Description of Potential Intervention

(subprojects: enterprise or infrastructure, business enabling program, etc.)


applicable


(Mun. &Brgys.)





Remarks Rank

PROCESSING and MARKETING

High level of losses / wastes due to short shelf life and high cost of transportation for fresh cardava banana

Establishment of consolidation center and provision of Hauling Facilities with Village Type Integrated Banana Processing Center

5 Units of Consolidation Center and Processing Center plus 5 Hauling Track/ 1 per growth area

GBDA-Gingoog City MISORET-Guinalaban Farmers Cooperative CLAJAVETA-Jasaan GALILEO- Sungay Farmers Cooperative MANLUNA-Lugait

DA,DTI, PLGU, MLGU and PG on Banana

75,000,000 R: Farmers and other VC players will not share information to maintain competitive advantage (individualistic mind-set) RM: Emphasis on collective or industry level marketing shall be given as back up by DTI on competitive marketing strategy R: Players especially farmers not willing to forge longer term contractual agreement RM: Incremental build-up

Technical Trainings on Banana processing and appropriate packaging, quality product standardization and Orientation for BFAD certification

1 training/ year and at least 3 Processing Center BFAD accredited

DA,ATI, DTI, DOST, PLGU, MLGU and PG on Banana Processing Operators

50,000.00

Conduct of Agri-fair, free product testing and Facilitate linkages with banana chips exporters and importers (Chinese importers buy first fry chips); promote long term contractual commitment

1 Activity per year Province Wide DA, DTI, PLGU, MLGU and PG on Banana Processors

3,020,000.00

28

Key Gap/ Constraint in VC Development in the Province (from the national & regional

VCA results)

Brief Description of Potential Intervention

(subprojects: enterprise or infrastructure, business enabling program, etc.)

Target Result/ Outcome, including # of farmers/ fisherfolk reached, if applicable

Target Areas to be covered (Mun.

&Brgys.)





Remarks Rank

INTERFIRM RELATIONSHIPS/VC GOVERNANCE

Weak capacity of farmers to organize themselves into structured groups

Capability building/Orientation on cooperative/association formation and development and technical assistance on the submission of requirements to pertinent government agencies

One (1) capability building/orientation activity conducted in clusters with no existing organized groups or with high number of new banana farmers

Province Wide DA, DOLE & CDA to extend technical support and capacitate farmers and farmer groups to formally organize themselves

500,000 R: Farmers and farmer groups unwilling to formally organize themselves RM: Technical Support group and lead organizations to emphasize benefits of collective bargaining and meeting the required volume of big buyers

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

80% of existing and new farmers organized into cooperatives/ associations

80% of existing and new farmers organized into cooperatives/ associations

Lack of access to savings, insurance, & loans which hinder formation of longer term contractual commitment and lead to increased incidences of side selling

Link financing institutions with banana farmers through forums and conferences

One (1) forum conducted per year

DA and DTI to facilitate linking of MFIs and farmers

500,000.00 R: Farmers do not honor commitments RM: Start with core group of farmers who have been proven to be loyal; Start with low risk activities and small amount

Invite M FIs to conduct orientations on financing arrangements and options to banana farmers and groups

At least five (5)M FIs conducted/attended forum on financing arrangements and options

Conduct capacity building/orientation on enterprise profiling/ packaging that will increase livelihood of financing

Increase in number of farmers with access to financial services at least 50%.

29

III. PRIORITY COMMODITY CHAIN DEVELOPMENT Commodity Value Chain 2: Cassava Granules

B. Commodity Profile: CASSAVA

Product Description

Cassava (ManihotesculentaCrantz) is an important food source in many developing countries. According to the Food and Agriculture Organization (FAO), more or less a billion people depend on cassava as food staple in 105 countries. Widely grown in tropical Africa, Asia, and Latin America, cassava is the fourth most important crop in developing countries. In the Philippines, cassava contributes 4% to the gross value added in agriculture. A FAO report published in May 2013 said cassava has a huge potential and could turn from "a poor people's food into a 21st century crop" if grown according to a new environment - friendly farming model.

Cassava has a strong economic relationship with resource-constrained farmers situated in forest margins and marginal lands. The crop can be grown under marginal conditions where few other crops could survive. It is relatively tolerant of poor soil and seasonal drought and has an unrivalled ability to recover from damage by pests and diseases. The crop offers the convenient flexibility that it can be harvested when the farmers need it. It can be left in the ground for 7 months to 2 years after planting and then harvested as needed. These characteristics make this crop a fundamental food and income security in marginal agricultural lands. Hence, any development in cassava will have an implication on food security, poverty alleviation, and on the protection and utilization of marginal lands in the Philippines that at present contribute very little to agriculture.

The cassava plant contains a root and leaves, which can both be processed to make various products. The leaves are good substitutes and supplement to commercial feeds while the damaged roots and skin can also be used as animal feeds. More products, however, can be made from the roots than the leaves. Products from cassava’s roots have greater value as these require more complex value added activities. The roots need to be processed to reduce the cyanide content to safe levels before consumption. Once harvested, cassava tubers begin to deteriorate and cannot be stored for more than a few days. They are bulky with about 70% moisture content which makes transportation of the tubers to urban markets difficult and expensive. Thus, there is a need for rapid processing of the tubers (before spoilage sets in) into various products with increased shelf life.

30

Cassava, which is also known as manioc, yuca, balinghoy, mogo,

mandioca, kamotengkahoy, is a perennial, woody shrub that grows

between one to four meters in height. The root can grow up to 15 cm in

diameter and reach 120 cm in length to weigh between one and eight

kilograms. The roots of a 1-1.5 year-old cassava plant have a starch

content between 20% and 32%, which is high compared to other starch

food crops. Cassava is an excellent source of carbohydrates but an

inferior source of protein, fat and vitamins

Cassava is acquiring an increased role in rural development as raw material for many industrial applications. The most important industrial uses of cassava are as source of energy in animal diets in the feed industry, for the starch industry, and more recently for the production of ethanol.

The value chain map describe the process flow of the commodity (Cassava) starting from the various players in the agriculture and trade sector advancing the development of the farmers thru the utilization of technology and sustainable market access.

Production Trend

In 2012 about 103 countries produced cassava with a production of 262,585,741 Mt. and 57% coming from Africa. The top 5 cassava producer of the world was Negeria, Indonesia, Brazel, Thailand and Dominican Republic of Congo. Philippines ranked 25th producers of cassava in the world with a production volume of 2,361,527.54 Mt.

31

Figure 7 Value Chain Map of Cassava

Source: VCA Cassava

The top 5 Region producers in the Philippines were ARMM, Northern Mindanao, Bicol Region, Central Visayas and Eastern Visayas, while, the top 5 provinces were Lanao del Sur, Bukinon, Basilan, Sulu and Misamis Oriental. The average yield 10.88 Mt.

In 2013, about 77% came from Mindanao. ARMM and Northern Mindanao accounted 90% of the Mindanao Production. Between the period 2009 and 2013, cassava production in Mindanao increased by 17%. Except for Caraga which registered a decrease of 61%, all of the other regions had increased cassava production during the same period. South Cotabato had the highest 318% increase in production between 2009 and 2013. At the regional level, significant percentage increase was noted in Soccksargen and Zamboanga Peninsula. Average yield was 13.16 Mt. At the Regional level Socksargen got the highest average yield of 25.70 Mt., followed by Northern Mindanao at 23.89 Mt. In the provincial level South Cotabato had the highest average yield of 33.17 Mt. Other provinces in the top 5 in terms of average yield were: Bukidnon (24.59 MT), Misamis Oriental (23.86 MT), Misamis Occidental (23.14 MT), and Sarangani (20.05 MT).

Northern Mindanao registered 44% production increased, the highest production increase of 65% from Bukidnon, 20% from Camiguin and 18% in Misamis Oriental. The increase was brought about by yield intensification. Area planted increased by 33% of which 47% from Bukidnon and 24% from Misamis Oriental.

The extent of access to resources and technology and its adoption appear to have a significant effect on farm productivity. Average yield of fresh tubers per hectare among farmers with limited access to resources and technology ranges from 10 to 15 tons per hectare compared to the 40 to 60 tons per hectare among those with access to resources and technology. A major characteristic of the farmers with access to technology and resources is the adoption of improved technology and varieties of cassava for planting.

In Misamis Oriental, dried cassava chips are sold to feed milling companies as ingredient in the production of livestock feeds. It is estimated that about 90% of fresh tuber production in the provincel are utilized for feed production and 10% for food.

San Miguel Foods, Inc. (SMFI) is the biggest feed milling capacity and major cassava buyers in

Mindanao including Misamis Oriental. The province is blessed because B-Meg Feed Milling Plant is located at Villanueva, Misamis Oriental. Its feed milling operation produces several types of animal feeds under the brand name B-Meg. Base on our MIS report biggest buyer of cassava in Cagayan de Oro is DBA-Traders and Cassava Integrators at Alubijid, Villanueva, Initao, Balingoan, Salay, Lagonglong, Kinoguitan, Sugbongcogon, Medina, Balingasag and Talisayan.

Production Trend in Misamis Oriental

The existing area planted to cassava is 5,610 hectares, while, the potential expansion area is

1,692 hectares or 30% increase by 2019 as stated in Table 8. The biggest producing cassava municipality was Jasaan with 1,135.25 hectares and the lowest producing cassava was Lugait with 10.75 hectares. Table 5 further noted that with their intention to expand their cassava area, the biggest producer according to Growth Area will be in Gingoog Bay Development Area was Gingoog City of 1,087 hectares, MISORET will be Balingasag of 990 hectares, CLAJAVET is Jasaan 1,269 hectares, GALILEO it will be at Opol of 255 hectares and MANLUNA at Manticao of 44 hectares.

32

Growth Area/

Municipality

Cassava (Has.) Growth Area/

Municipality

Cassava (Has.)


GBDA GALILEO

Magsaysay 21.75 21.75 Opol 235 20 255

Gingoog City 1,087 1,087 El Salvador 11 100 111

Medina 8 100 108 Alubijid 136 100 236

Talisayan 101 20 121 Laguindingan 72 20 92

Balingoan 158 50 208 Gitagum

Sub-total 1,375.75 170 1,545.75 Libertad 15 35 50

MISORET Initao

Kinoguitan 75 50 125 Sub-total 469 275 744

Sugbongcogon 63 112 175 MANLUNA

Binuangan 20 80 100 Naawan 18.75 10 28.75

Salay 175 100 275 Manticao 29 15 44

Lagonglong 500 500 Lugait 10.75 10.75

Balingasag 840 150 990 Sub-Total 58 25 83

Sub-total 1,673 492 2,165 Mis. Or. Total 5,610 1,692 7,302

CLAJAVETA % Increase 30%

Jasaan 1,135.25 1,135.25

Claveria 669 600 1,269


Tagoloan 65 30 95

Sub-total 2,034.25 730 2,764.25

Table 8. Existing and Expansion Area of Cassava in Misamis Oriental

33

Base in the vulnerability and sustainability assessment the top municipality are Jasaan, Gingoog City, Balingasag, Claveria and Laguindingan.


Incidenc

e

Population Area

Planted

No. of

Farmer

Produc-

tion

Old

Compo-

site

Index

Old

Rank

New

Composite

Index

New

Rank

1 JASAAN 38 51690 1135 1136 27087 0.5423 15 0.68429 1

2 GINGOOG CITY 49 121902 1087 1087 25936 0.4529 26 0.68221 2

3 BALINGASAG 48 68649 840 840 20042 0.5854 11 0.65893 3

4 CLAVERIA 49 51004 669 669 15962 0.4686 25 0.55053 4

5 LAGUINDINGAN 45 23291 72 72 1718 0.7593 1 0.51709 5

6 LAGONGLONG 49 19303 500 500 11930 0.5134 20 0.51527 6

7 ALUBIJID 51 31033 136 136 3245 0.6354 7 0.48975 7

8 VILLANUEVA 40 44544 165 165 3937 0.648 6 0.48265 8

9 INITAO 54 29331 0 0 0 0.6641 4 0.47473 9

10 TAGOLOAN 34 69275 65 65 1551 0.6852 3 0.47045 10

11 GITAGUM 47 19876 0 0 0 0.694 2 0.46886 11

12 LIBERTAD 51 12373 15 15 358 0.6573 5 0.46108 12

13. MAGSAYSAY 62 33323 22 22 519 0.5471 14 0.44302 13

14 NAAWAN 53 21278 18 19 447 0.5675 12 0.42562 14

15OPOL 27 52108 235 235 5607 0.5523 13 0.42494 15

Table 9 LGU RANKING BASE ON EVSA MATRIX for Cassava

34


Incidence

Populat-

ion

Area

Planted

No. of

Farmer

Produc-

tion

Old

Compo-

site

Index

Old

Rank

New

Composite

Index

New

Rank

16 EL SALVADOR 41 48059 11 11 262 0.6007 9 0.42216 16

17 LUGAIT 43 20100 11 11 257 0.6078 8 0.41906 17

18 SALAY 41 27591 175 175 4176 0.5043 21 0.40891 18

19 TALISAYAN 45 23289 101 101 2410 0.5244 17 0.40731 19

20 MANTICAO 48 28640 29 29 692 0.5368 16 0.40395 20

21 BALINGOAN 48 10175 158 158 3770 0.4818 24 0.40295 21

22 KINOGUITAN 49 13201 75 75 1790 0.5145 19 0.40103 22

23SUGBONGCOGON 44 10626 63 63 1503 0.4955 22 0.37521 23

24 BINUANGAN 50 6765 20 20 477 0.4865 23 0.37228 24

25 MEDINA 38 33618 8 8 191 0.5237 18 0.3697 25

35

Figure 8 Map Showing the Vulnerability & Suitability of Cassava in Mis. Or.

36

B. Investment Plan The great challenge that agriculture sector is facing by 2015 is to produced quality safety agricultural product that will be competitive in the global market. The development and the way food is produced, processed and sold are changing rapidly. Consumers increasingly want safe, higher value, and varied agricultural products. The provincial direction will producing quality cassava, by transforming cassava chips into granules. Increase cassava production by increasing area devoted to cassava from 5,610 to 7,302 or an increase of 30%, established multiplier farm as source of quality planting materials, provide technical and financial support the province might be the number 1 producer of cassava in Region 10.

37

C. Project Interventions Base on PCIP GAP Matrix Table10. PCIP Gap Matrix Cassava Value Chain in Misamis Oriental



results)



etc.)


applicable


&Brgys.)

Proposed Lead & Other Players for

subproject Implementation

Note: identify the lead player



Remarks Rank

INPUT SUPPLY

Lack of access to and availability of steady supply of planting materials Lack of know-how to set-up an effective system for rapid multiplication and distribution of new varieties with high yield potential, high harvest index, and high root starch content

Establishment of Plant Material Multiplier Farm (PMMF) Financial and Technical support to existing (PMMF)

At least one (8) PMMF and operationalized

Magsaysay Balingasag Claveria Jasaan Laguindingan Initao Naawan Lugait

DA, PLGU, MLGU together with Cassava Farmer Cooperatives

400,000.00 R: Farmers still reluctant to use improved plt. material. RM: Development and implementation of voucher or similar schemes and lower cost of plt. materials R: Planting materials from established nurseries do not return intended/projected desirable yields RM: Application of quality operation standards and quality planting materials with regular monitoring

Low uptake/ adoption of nursery produced planting materials

Set-up of demonstration farms to showcase benefits of using planting materials from nurseries Development of capacity of nursery operators/ multiplication farms to deliver technical advice to farmer clients include quality assurance /standard

8 demo farm Capability Building of PMMF Operators & will extend technical support to farmers .

Magsaysay Balingasag Claveria Jasaan Laguindingan Initao Naawan Lugait

DA, ATI, PLGU, MLGU together with Cassava Farmer Cooperatives

400,000.00 50,000

R: Non-implementation by existing nursery operators; Indiscriminate purchasing by farmers. RM: Awareness and promotion of benefits to all levels & Accreditation of nursery operators

38



results)



etc.)


applicable


&Brgys.)






Remarks Rank

Plant Now Pay Later with Planting materials ( Farmers will return doubled the number of plant materials received) Dissemination of success stories/ Information Education Campaign on cost-benefit analysis in using nursery grown materials

Distribution of 2,255,436 Planting Materials Conduct info drive thru forum, print media, TV and Radio

All Areas DA, PLGU, MLGU together with Cassava Farmer Cooperatives Tri-Media ( Radio, TV and Print), Prov’l. Press Office, PAO Info Officer

1,127,718.00 200,000

Limited supply of organic fertilizer appropriate for cassava farming

Implementation of voucher program or similar market-based mechanism to stimulate purchase and use of fertilizer and buy down risks

Distribution of 36,510 bags of organic fertilizer

All Area DA, PLGU and MLGU together with Cassava Farmer Cooperatives

4,563,750.00 R: Farmers would not acquire, pay and apply organic fertilizer in their farms. RM: Promo campaign to promote benefits and awareness.

PRODUCTION

Fragmented and dispersed production sites resulting to high transaction costs

Technical and financial support in the development and piloting of nucleus farm and cluster partnership models

At least 1 Capability Building Activities conducted for each cluster per year

All Areas DA, ATI, PLGU and MLGU together with Cassava Farmer Cooperatives

50,000 R: Continuity of sporadic farm locations RM: Highlighting of benefits to be acquired from concentrated or clustered farm locations and possible support to the establishment of access and provision of materials

39



results)



etc.)


applicable


&Brgys.)






Remarks Rank

Other farmers are not aware of the potential opportunities in cassava production

Conduct of orientation or holding of fora on cassava production market and demands and tying up of prospective product buyers with existing and new cassava producers

1 Fora/ Orientation/IEC conducted per year

All Areas DA,ATI, PLGU and MLGU together with Cassava Farmer Cooperatives

50,000 R: Investments from orientation / capability building will not translate to cassava farm expansion or increased number of cassava farmers RM: Pair orientation with market matching and establishing buyer-producer linkages

Farmers interested in cassava farming do not have or lack access to resources (skills, knowledge and finances) to do so

Capability building on cassava production and cassava value chain. Establishment of a Technical Support Team to address queries of farmers from land preparation to final sale stages Establishment of Demo Documentation of success story Incentive of successful PG

1 capability building on cassava production conducted for interested farmers per year 8 Technical provider per area 8 Demo farm 1 PG per year 5 PG


50,000 400,000 320,000 20,000 500,000

At the production level, supply is characterized by inconsistent quality

Orientation/IEC on quality standards and its benefits in terms of final sale transactions

1 orientations on quality standards conducted per year IEC in the form of pamphlets, leaflets and brochures are distributed to existing cassava farmers


500,000 R: Farmers cannot keep up with quality requirements due to limited resources and age-old farming practices

40



results)



etc.)


applicable


&Brgys.)






Remarks Rank

RM: IEC should be complemented with technical support on updated farming methods and ways in attaining desired product quality

PROCESSING/POSTHARVEST

Lack of post-harvest facilities

Provision of post-harvest facilities ( mechanical chipper, granulator, dryer with warehouse, moisture meter, truck scale)

8 Cassava Processing Center

All Area DA, PLGU,MLGU, Cassava Farmers PG

8,000,000

R: Farmers will not patronize provided equipment or will proceed to final sale without processing RM: Forge agreement with farmers and farmer cooperatives on processing and utilization of post-harvest facilities

Acquisition of mobile mechanical chipper and common service facility for drying for areas below 100 hectares

5 mobile mechanical chipper and common service facility

All Areas DA, PLGU,MLGU, Cassava Farmers PG

2,500,000 R: Mobile and CSF operators do not deliver services to farmers under agreed cost and schemes. RM: Tripartite MOA to be signed between co-financiers/stakeholder and beneficiaries.

41



results)



etc.)


applicable


&Brgys.)






Remarks Rank

High transportation cost for fresh tubers

Construction/Concreting/ rehabilitation/Upgrading of FMR

DA, PLGU,MLGU, Cassava Farmers PG

Gingoog Bay Development Area (GBDA)

Concreting of Brgy. Mintabon (T4) – Brgy. Sindangan – Mintabon Road (Brgy. Hall)

6 km Talisayan 60,000,000.00 R: Roads and infrastructure are not serving the production areas identified in the VCA; Poor quality; delays during construction RM: Transparency and strict monitoring and evaluation of awarded builders and their road and infra construction deliverables. Dissemination of geographic areas and beneficiaries to secure common understanding at all levels and areas. Promote synergies and complementation among builders to ensure efficiency, coherence and optimum utilization of funds.

MISORET

Upgrading of Panabol-Beray FMR

Upgrading of Panabol-Beray FMR

0.873 km Kinoguitan 5,297,334.25

Upgrading of Sumalag-Calubo

2.11 km Kinoguitan 24,517,559.93

Concreting of Baliwagan –Samay Road

8.5 km Balingasag 141,850,000.00

CLAJAVETA

PRK. 6-Jampason –Prk. 3 Jampason FMR

4 KM Jasaan 40,000,000.00

Prk. 6 Bobontugan – Prk. 9 Jampason FMR

4 km Jasaan 40,000,000.00

Concreting of Jasaan-Claveria Road

10 km Jasaan & Claveria 240,360,000.00

Upgrading of Dawayan-Lokong-Crossing Mambuaya FMR

3.7454 km Villanueva 14,163,422.06

Upgrading of Zone 1-Dugo-dugo FMR

24.833 km

Claveria 24,833,417.02

Rehab. Of Lanesi-Mabini-Sta Cruz FMR

4.334 km Claveria 18,500,000.00

42



results)



etc.)


applicable


&Brgys.)






Remarks Rank

GALILEO DA, PLGU,MLGU, Cassava Farmers

PG

Aromahon-Lapad Road 1.4 km Laguindingn 5,320,000.00

Aromahon-Tiano Road 1.9 km Laguindingan 7,220,000.00

Concreting of Sampatulog-Guinotang-Altubo FMR

5.903 km

Alubijid 59,030,000.00

Upgrading/Concreting of Tubigan – Calindanawan-Talagusok FMR

2 km Initao 18,000,000.00

Upgrading /Concreting of Sibukawon-Tangkal Road

2 km Initao 18,000,000.00

Upgrading /Concreting of Poblacion – Tangkal FMR

2 km Initao 18,000,000.00

Limited know-how and skills on Good Manufacturing Practices and Sustainable Production Practices Lack of access to training services on GMP and sustainable production practices

Technical assistance in customization of existing GMP modules on chipping, drying, and storage in collaboration with key VC Players Development of a core group of local experts to provide hands-on training and mentoring to users of postharvest facilities as embedded service of CSF

One (1) capability building activity conducted per year on manufacturing and sustainable production practices

All Areas DA, DTI, PLGU and MLGU together with Cassava Farmer Cooperatives

50,000 R: Existing farmers will not apply new technology due to added cost and time required RM: Pair orientation and capability building with existing market demands and prospective buyers of processed products, highlight preferences of the industry and competitive advantages.

43



results)



etc.)


applicable


&Brgys.)






Remarks Rank

MARKETING

Poor flow of information on demand and supply requirements

Establishment of an information system on market demand forecast and corresponding supply requirements among farmers and farmer cooperatives through the use of modern technology Orientation/IEC on market indicator sources such as publications, magazines, website subscriptions, etc. Technical assistance and capability building to farmer cooperatives on mapping cassava production areas and its planting and harvesting schedules including projected yield

80% of existing farmers and farmer cooperatives are linked/connected to each other and able to exchange information A website on integrated cassava statistics and updates created for the whole province Increase in number of purchase agreements between farmers and traders as opposed to spot transactions

All Areas DA, DTI, DOST, PLGU, MLGU, Farmers Cooperative

1,000,000 R: Farmers and other VC players will not share information to maintain competitive advantage (individualistic mind-set) RM: Emphasis on collective or industry level marketing shall be given R: Players especially farmers not willing to forge longer term contractual agreement RM: Incremental build-up of relationships using both formal and informal mechanisms

Inadequate packaging and promotion capabilities of farmers and farmer groups to attract local and international buyers

Capability Building on the utilization of modern technology as a tool for marketing end products

At least 80% of the total number of farmers attended capability building activity

All Areas DA, DTI, DOST, PLGU, MLGU, Farmers Cooperative

500,000 R: Hesitation and inability on the part of farmers to use modern technology RM: Capability building to include arrangements on collective promotion or publicity and inclusion of younger members to maintain webpage

44



results)



etc.)


applicable


&Brgys.)






Remarks Rank

INTERFIRM RELATIONSHIPS/VC GOVERNANCE

Weak capacity of farmers to organize themselves into structured groups

Capability building/Orientation on cooperative/association formation and development and technical assistance on the submission of requirements to pertinent government agencies 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

One (1) capability building/orientation activity conducted per year with no existing organized groups or with high number of new cassava farmers 90% of existing and new farmers organized into cooperatives/associations

All Areas DA, DOLE, CDA, PLGU, MLGU to extend technical support and capacitate farmers and farmer groups to formally organize themselves PLGU and MAO to facilitate membership

250,000 R: Farmers and farmer groups unwilling to formally organize themselves RM: Technical Support group and lead organizations to emphasize benefits of collective bargaining and meeting the required volume of big buyers

Dominance of spot transactions

Capability building on medium-term and long-term contract agreements

One (1) capability building activity conducted per year

All Areas DA and DTI to capacitate farmers and farmer cooperatives on forging medium and long-term contract agreements with buyers PLGU & MLGU facilitate initation of participant

250,000 R: Farmers and farmer groups will not engage in medium and long term contracts RM: Capability building will be complemented with linking producers with buyers offering advantageous or fair contract arrangements

45

III. PRIORITY COMMODITY CHAIN DEVELOPMENT Commodity Value Chain 3: Abaca Fiber

A. Commodity Profile: Abaca Product Description

The most important part of the abaca is the stalk which is the source of the fiber. Abaca fiber is superior over all other natural fibers because of its great strength and its resistance to the action of water. Considered the strongest of natural fibers, it is three times stronger than cotton. The product is known worldwide as the “Manila Hemp”, with the Philippines as the top producer and exporter.

Product Trend

Production of abaca fiber decreased in 2012 to 77, 820 metric, 7, 100 metric tons less than in 2011. The Philippines is the world’s leading producer of abaca. In 2012, the country accounted for 85% of the world production. While the crop is also cultivated in other Southeast Asian countries, the second largest producing country is Ecuador, where abaca is grown on large estates and production is increasingly mechanized. In the Philippines, the abaca sector consists mainly of smallholders. Philippine abaca has nine grades for each type of cleaning compared to the five grades of Ecuador. As such, Philippine abaca presents a wider spectrum of quality choices and answers the various needs of different manufacturers like the papermaking industry. The abaca industry is threatened by serious and aggressive moves by Indonesia to massively produce abaca under its government’s reforestation program. It is also said that abaca production in Kenya and Equatorial Guinea is also increasing.

The domestic production, Philippines abaca is grown in 56 provinces. In 2013, the country produced 64,951.60 MT of abaca fiber. Thirty Four (34)% of the country’s production was from Mindanao cluster, 37% was supplied by Luzon and 29% from Visayas.

In Mindanao Davao Region is the top producing accounted to 11%, Caraga 9%, ARMM 8%, Northern Mindanao 3%, Zamboanga Peninsula 1% and Socksargen 1%.

Between 2009 and 2013, Philippines production decreased by only 1%. Mindanao production decreased by 7%, Davao had the highest % decrease in production of 29% while, Zamboanga Peninsula registered the highest percentage increase at 198%. Northern Mindanao recorded production increased of 29%.

46

The official standard grades of abaca fiber are divided into three

(3) classes depending on the manner of extraction, namely: hand-

stripping, spindle-stripping and decortications. Quality is determined by

strength, cleaning, color, texture and length of the fiber.

The country trades five types of Philippine abaca products in the world market, namely: fiber, pulp, cordage, yarns and fabrics, and fiber craft.

Among the provinces in Northern Mindanao the highest production change from 2009-2013 was Misamis Oriental accounted about 424%. The increased of Misamis Oriental was brought about by the Mechanized Abaca Fiber Production and Marketing Project initiated by PLGU and funded by NEDA-KR2 which was technically assisted by FIDA and DTI, the objective of the project is to improve the quality of fiber using abaca stripping machines, establishment of Trading Post and Bodega. This project triggered more investment on abaca production which resulted to the establishment of new abaca plantation of about 1,500 hectares in CY2012. The second highest producing province was Misamis Occidental with 16%, Lanao del Norte 16% and Bukidnon 3%.

Total area planted to abaca increased from 135,081.37 hectares in 2009 to 138369.35 hectares in 2013. Similarly, Mindanao’s hectarage planted to abaca increased by 12% during the five year period. It would appear then that drop in production volume in 2013 over 2009 figures was primarily caused by decline in yield.

Mindanao’s average yield per hectare in 2013 was 4% higher than the national average. Average yield though in Mindanao decreased from 0.59 MT/hectare in 2009 to 0.49 MT/hectare in 2013. The average yield in Mindanao was lower than Catandauanes which was at 0.82 MT per hectare. Northern Mindanao got 21% increased average yield, Camiguin got the highest increased of 744%, Misamis Oriental 179%, Misamis Occidental 16%, Bukidnon 2% and Lanao del Norte got negative increased of 18%. With good agronomic practices and the use of high yielding varieties, average yield per hectare can reach as high as 2 MT per hectare.

Table 11 noted that the existing area planted was only 760 hectares, since some of the area planted was damage by Typhoon and will intend to rehabilitate. The table further revealed that because with the existing great market demand both locally and export demand farmers shows their intent to plant abaca. Hence, about 896 hectares/118% is the expected expansion area in the province.

Base on expanded vulnerability and sustainability matrix, the top 5 municipality are Claveria, Laguindingan, Initao, Gitagum and Libertad as shown in Table 12.

47

Growth Area/

Municipality

Abaca (Has.) Growth Area/

Municipality

Abaca (Has.)


GBDA GALILEO

Magsaysay 10 10 Opol 20 80 100

Gingoog City 55 55 El Salvador

Medina Alubijid

Talisayan 40 40 80 Laguindingan

Balingoan Gitagum

Sub-total 40 105 145 Libertad

MISORET Initao

Kinoguitan Sub-total 20 80 100

Sugbongcogon 13.5 90 103.5 MANLUNA

Binuangan Naawan

Salay 65.5 40 105.5 Manticao 14 14

Lagonglong Lugait

Balingasag 22 80 102 Sub-Total 14 14

Sub-total 101 210 311 Mis. Or. Total 760 895 1,655

CLAJAVETA Grand Total 118%

Jasaan

Claveria 585 500 1,085

Villanueva

Tagoloan

Sub-total 585 500 1,085

Table 11. Existing and Expansion Area of Abaca in Misamis Oriental


Incidence

Population Area

Planted

No. of

Farmer

Pro-

duct-

ion

Old

Compo-

site

Index

Old

Rank

New

Composite

Index

New

Rank

1 CLAVERIA 49 51004 585 585 421 0.4747 24 0.67682 1

2 LAGUINDINGAN 45 23291 0 0 0 0.76 1 0.49842 2

3 INITAO 54 29331 0 0 0 0.6763 4 0.48083 3

4 GITAGUM 47 19876 0 0 0 0.6967 2 0.47021 4

5 LIBERTAD 51 12373 0 0 0 0.6766 3 0.46677 5

6 ALUBIJID 51 31033 0 0 0 0.6539 7 0.46307 6

7 BALINGASAG 48 68649 22 22 16 0.5924 12 0.45181 7

8 VILLANUEVA 40 44500 0 0 0 0.6731 5 0.45157 8

9 MAGSAYSAY 62 33373 0 0 0 0.5736 15 0.45049 9

10 TAGOLOAN 34 69275 0 0 0 0.6582 6 0.43977 10

11 NAAWAN 53 21278 0 0 0 0.603 10 0.43846 11

12 EL SALVADOR 41 48059 0 0 0 0.6188 9 0.4283 12

13 LUGAIT 43 20100 0 0 0 0.6201 8 0.42232 13

14 MANTICAO 48 28640 14 14 11 0.5719 16 0.42122 14

15TALISAYAN 45 23289 40 40 29 0.5475 19 0.41274 15

Table 12. LGU RANKING BASE ON EVSA MATRIX for Abaca


Incidenc

e

Population Area

Planted

No. of

Farmer

Produc-

tion

Old

Compo-

site

Index

Old

Rank

New

Composite

Index

New

Rank

16 SALAY 41 27591 66 66 47 0.536 21 0.41223 16

17 KINOGUITAN 49 13201 0 0 0 0.556 17 0.40196 17

18 GINGOOG CITY 49 121902 0 0 0 0.4659 25 0.4015 18

19 JASAAN 38 51690 0 0 0 0.5763 14 0.40129 19

20 BINUANGAN 50 6765 0 0 0 0.5429 20 0.3952 20

21 SUGBONGCOGON 44 10628 14 14 10 0.5483 18 0.39212 21

22 OPOL 27 52108 20 20 14 0.5852 13 0.38946 22

23 LAGONGLONG 49 19303 0 0 0 0.5212 23 0.38707 23

24 BALINGOAN 48 10175 0 0 0 0.5212 23 0.3809 24

25 MEDINA 38 33618 0 0 0 0.5237 22 0.36758 25

LGU RANKING BASE ON EVSA MATRIX for Abaca

49

Figure 9 EVSA Map of Abaca

50

Suitability Map

B. Investment Plan

In line with the goal of the new administration that Misamis Oriental will became a tourist destination. The thrust in agriculture sector is to increase productivity thus increase household income and food security for the people in the province and visitors. Invasion to achieve thru sustainable agriculture by promoting organic farming and resilient farming practices. Because of the limited farm holding of the majority of the farmer in the province, intercropping / multiple cropping systems especially under coco will be promoted. Abaca is one of export potential crop that is best suited to intercrop with coconut. With this farmer’s income per hectare will increase at least 20% by 2019. The province thrust on abaca industry is to expand abaca production under coconut, produced quality abaca fiber and exporter of sinamay. Increase income of 1,655 abaca farmers.

51

C. Project Intervention Base on PCIP Gap Matrix Table 13: PCIP Gap Matrix Abaca Fiber value chain in Misamis Oriental Key Gap/ Constraint in VC

Development in the

Province (from the national

& regional VCA results)

Brief Description of Potential

Intervention (subprojects:

enterprise or infrastructure,


Target Result/

Outcome, including #

of farmers reached, if

applicable

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead &

Other Players for

subproject

Implementation

Note: identify the

lead player

Estimated

Project Cost

Risk & Risk

Management

Remarks Rank

INPUT PRODUCTION/PROVISION

Lack of access to disease-

resistant high yielding

breeds

Establishment of Community Seed Bank Abaca Nurseries (CSBAN) Planting Materials from the Plant Tissue Laboratory

4 CSBAN Talisayan Sugbongcogon Salay, Claveria

DA,ATI, PLGU,

MLGU & Farmer

Cooperatives/PG

200,000 R: Planting

materials from

established

nurseries do not

return intended/

projected desirable

yields

RM: Application of

quality operation

standards and

quality planting

materials with

regular monitoring

Development of capacity of Community Seed Bank Nursery Operators to provide technical assistance

1 Capability Building

of CSBAN Operators

Talisayan Sugbongcogon Salay, Claveria

DA,ATI, PLGU,

MLGU & Farmer

Cooperatives/PG

50,000

Accreditation of (CSBAN)

4 CSBAN Talisayan Sugbongcogon Salay, Claveria

DA, PLGU, MLGU &

Farmer

Cooperatives/PG

60,000

52

Key Gap/ Constraint in VC

Development in the







Target Result/



applicable

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead &

Other Players for

subproject

Implementation

Note: identify the

lead player

Estimated

Project Cost

Risk & Risk

Management

Remarks Rank

Majority of farmers will not

used/ purchase planting

materials from nurseries

and do not appreciate

benefits of doing so.

Plant Now Pay later Plan or similar mechanisms to encourage farmers to use clean planting materials of the high yielding

895,000 seedling

distributed


PLGU, MLGU &

Farmer

Cooperatives/PG

18,950,000 R: Farmers still

reluctant to use

improved planting

material.

RM: Development

& implementation

of voucher or

similar schemes

and lower cost of

planting materials

Establishment of demo farms to showcase benefits of using planting materials from nurseries

4 demo Talisayan Sugbongcogon Salay, Claveria

PLGU, MLGU &

Farmer

Cooperatives/PG

200,000

Documentation & dissemination of emerging good practices

2 documentation Salay Claveria

PLGU, MLGU &

Farmer

Cooperatives/PG

50,000

Giving Incentives to outstanding performing farmers

4 Farmers Talisayan Sugbongcogon Salay, Claveria Opol

200,000

53


Development in the







Target Result/



applicable

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead &

Other Players for

subproject

Implementation

Note: identify the

lead player

Estimated

Project Cost

Risk & Risk

Management

Remarks Rank

FARMING/PRODUCTION

Low technological capacity

and lack of access to

providers/services to

improve agronomic

practices, reduce

incidence of insects and

diseases

Development of community-based providers/ trainers on sustainable farming practices and enterprise management including delivery and financial sustainability schemes

4 Technical Provider Talisayan Sugbongcogon Salay, Claveria

PLGU,MLGU, PG 200,000 R: Continuity of

sporadic farm

locations

RM: Highlighting of

benefits to be

acquired from

concentrated or

clustered farm

locations and

possible support to

the establishment

of access and

provision of

planting materials

Technical & Financial Support in the set-up of model farms to showcase good abaca farming technologies and venue for learning

Conduct 1 Capability Training on sustainable farming practices & enterprise mgt. including delivery and financial scheme


DA,ATI, PLGU,

MLGU & Farmer

Cooperatives/PG

50,000

Low uptake and adoption

of good agronomic

practices/sustainable

farming practices

Support the set-up of model farms to showcase good abaca farming technologies and venue for learning

4 Model farm Talisayan Sugbongcogon Salay, Claveria

DA, ATI, PLGU,

MLGU & Farmer

Cooperatives/PG

200,000

Giving awards /incentives to selected 4 learning sites


1,000,000

54


Development in the







Target Result/



applicable

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead &

Other Players for

subproject

Implementation

Note: identify the

lead player

Estimated

Project Cost

Risk & Risk

Management

Remarks Rank

Poor Farm to market Road

in the production area,

difficulty in transporting

inputs and abaca product

to processing area

Establishment/Construction/ rehabilitation /Concreting of FMR

Concreting of Mimbuahan-

Ampianga FMR

4.35 Km Sugbongcogon DA,PLGU,MLGU,

BLGU

43,500,000

Concreting of Guinalaban-

Matampa Road

3.5 km Salay 35,000,000

POST HARVEST OPERATION

Lack of access to drying

and postharvest facilities

Support the upgrading of existing collective enterprises and/or set-up of GMP compliant common service facilities (stripping machine, dryer, storage facility, and transportation services)

Established 4 GMP/Upgrading Common Service Facility

Talisayan Sugbongcogon Salay-Mimbuli FMPC, Claveria

DA,PLGU, MLGU &

Farmer

Cooperatives/PG

6,000,000 R: Investments

orientation and

capability building

will not translate to

abaca farm

expansion or

increased no. of

abaca growers and

processors. RM:

Pair orientation

with market

matching &

establishing buyer-

producer linkages

Build capacity of operators of common service facilities to provide technical assistance to clients/strippers

1 Capability Building for Common Service facility operators

Talisayan Salay Sugbongcogon Claveria

DA, ATI, PLGU,

MLGU, PG

50,000

Support the organizational development of associations/ cooperatives including facilitating increase in membership base

Strengthening of the 10 Abaca Cooperative

Talisayan Salay Sugbongcogon Claveria

DA, PLGU, MLGU,

CDA, PCO

50,000

55


Development in the







Target Result/



applicable

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead &

Other Players for

subproject

Implementation

Note: identify the

lead player

Estimated

Project Cost

Risk & Risk

Management

Remarks Rank

MARKETING

Dominance of all-in

procurement which

provides disincentives for

upgrading

Technical assistance in the harmonization of interpretation of standards and pricing structure and its implementation/ enforcement Strengthen capacity of existing formal and informal information systems to disseminate accurate price information

Conduct 1

Fora/Training /year


DA,DTI, PLGU, MLGU & Farmer Cooperatives

500,000

INTERFIRM RELATIONSHIPS AND SUPPLY CHAIN GOVERNANCE

Dominance of spot

transactions makes

farmers more vulnerable to

price fluctuation.

Strengthening of cooperatives

Conduct market forum and Forge

marketing Contract between lead

firm and Cooperative

1 2 Cooperatives

1 forum /year & 4

Marketing agreement

forge


DA,DTI, PLGU,

MLGU & Farmer

Cooperatives

750,000

Lack of horizontal

collaboration increase the

cost of transactions.

Organizational development support to farmers complemented with behaviour change interventions and entrepreneurial skills development

1 Vehicles / LGU LGUs DA,DOLE, CDA,

PLGU, MLGU &

,Farmer

Cooperatives

6,000,000

56

III. PRIORITY COMMODITY CHAIN DEVELOPMENT Commodity Value Chain 4: Cocoa Bean

A. Commodity Profile: CACAO

Product Profile

Cacao, Theobroma cacao is a rainforest, understudy tree that requires shade and wind protection. It is grown in all humid tropical lowland regions around the equator, most notably Central and South America, West Africa and Sri Lanka, Indonesia and the Philippines. It thrives best in areas where rainfall is between 1,150 to 2,500 mm per year and temperatures between 21 to 30 degrees centigrade.

National trees in Ecuador, considered being Forastero-type trees, produce fine or flavour cocoa. On the other hand, Cameroon cocoa beans, produced by Trinitario-type trees and whose cocoa powder has a distinct and sought-after red colour, are classified as bulk cocoa beans. The share of fine or flavour cocoa in the total world production of cocoa beans is just under 5% per annum. Virtually all major activity over the past five decades has involved bulk cocoa (ICCO website). Mindanao primarily grows Forastero trees and produces “bulk” beans.

Cocoa is an important crop around the world: a cash crop for growing countries and a key import for processing and consuming countries. Philippines grows cacao as well as produces and consumes chocolate based products. Cocoa travels along a global supply chain crossing countries and continents. The complex production process involves numerous parties including, farmers, buyers, shipping organizations, processors, chocolatiers, and distributers. Overall, it is possible to identify four major product categories based on different stages of processing, namely:

- Dried cocoa beans (fermented/unfermented); - Semi-finished cocoa products (cocoa paste/liquor, cocoa butter, cocoa powder); - Couverture, or industrial chocolate;

The tree produces pods that contain about 20 to 60 cocoa beans surrounded by a sweet tasting pulp. When fermented and processed, the beans produce one of the most desired flavour in the world chocolate. The world cocoa market distinguishes between two broad categories of cocoa beans: "fine or flavour" cocoa beans, and "bulk" or "ordinary" cocoa beans. Fine or flavour cocoa beans are produced from Criollo or Trinitario cocoa-tree varieties, while bulk cocoa beans come from Forastero trees. There are, however, known exceptions to this generalization.

57 - Finished chocolate products.

Cocoa products traded by the Philippines in the international market include the following:

Cocoa beans, whole/broken, raw/roast

Cocoa Powder not containing added sugar / other sweetening matter

Cocoa Paste, not defatted (licor)

Cocoa Butter, fat/oil

Chocolate Confectionery

Chocolate or Cocoa Powder, chocolate blocks

Cocoa Paste, wholly / partly defatted (Cocoa Cake)

Sweetened Cocoa Paste

The value chain map describe the process flow of the commodity (Cacao) starting from

the various players in the agriculture and trade sector advancing the development of the

farmers thru the utilization of technology and sustainable market access .( See VCA

Coffee for the details)

Fig. 10 : Value Chain Map of Cacao Fermented Beans and Butter in Export Market Source : VCA Cacao

58

Figure 10. Value Chain Map of Cacao in Domestic Market Source: VCA Cacao

Among the regions in Mindanao, Davao has the widest range of cocoa products

and the biggest market outreach. The region produces and trades dried fermented beans and all its key by-products. The most dominant product traded by the region in both domestic and export markets is the cacao beans with SOCCKSARGEN farmers contributing to its supply base. Dominant product currently produced and traded in the domestic region by other regions in Mindanao is the tablea.

Product Trend

World cocoa/cacao bean production in 2011/12 reached about 4.085 million metric tons. Global output was dominated by Cote d’Ivoire which accounted for 36.4% Ghana and Indonesia comprised 21.5% and 10.8% of global production, respectively. Indonesia is the largest producer of unfermented bulk beans. Ghana cocoa beans have long been known for their quality and depth of flavour and, as such, receive a price premium in the world market. According to the International Cocoa Organization (ICCO), Ghana cocoa is richer in Theobromine compared to beans produced in other countries and Flavonoids which have given the beans the unique, mild and rounded flavor. As such, the quality of Ghana cocoa beans has become the world’s standard against which all cocoa is measured.

59

During the past two years, key cocoa producing countries experienced decline in their production. In Cote d’ Ivoire, for example, the dry spell in September 2013 hindered pod and flower development across the country, contributing to the sharp slowdown towards the end of the mid-crop (June-September). Moreover, reports indicated that there was a sharp drop in the use of insecticides and anti-fungal treatments which increased losses from fungus, pests and diseases. Sales of both inputs fall by 60% to 70% in June and July, the period when they are applied to cocoa trees, reflecting the squeeze on farmer’s incomes from higher food and transport prices and the inability of smallholders to raise financing. As a result, the spread of black pod disease – which affected an estimated 12% of the Ivory Coast’s cocoa plantations intensified, further reducing yields. A further constraint on production is the government’s ongoing programme to evict illegal farmers from protected forest land, a policy that has so far moved 25,000 farmers of cocoa plantations, taking an estimated 70,000 MT out of Ivory Coast’s production capacity. With further planned evictions of the estimated 800,000 farmers, Ivory Coast could face a sharp drop in production.

The outlook for Ghana’s crop is also not so bright, owing both to dry weather in the lead-up to the main crop and a sharp drop in the use of fertiliser. It is expected that there will be a drop in the use of fertilizer following the decision by the Ghana Cocoa Board (Cocobod) to cut back its subsidy programme. Owing to increasing financial constraints, Cocobod is winding up its free pest-spraying programme and is planning to reduce the provision of subsidised fertiliser to just 300,000 bags in 2013/14, compared with 2 million bags in 2012/13. This has already caused an increase in fertilizer prices, which have risen from an average of GHS32/bag earlier in the season to as high as GHS54/bag, forcing farmers to significantly reduce their application of fertiliser. Giventhat the improved use of fertiliser and other inputs have been key factors in more than doubling Ghana’s output of cocoa over the past decade, the impact on yields could be devastating, especially as the country also suffers from black pod disease. The situation in Ghana also provides insights on the danger of putting in heavy subsidies on inputs without laying the groundwork for a sustainable exit mechanism.

Preliminary estimates for Cocoa year 2012/13 also indicate a drop in Indonesia’s production. Indonesia has still vast land for possible expansion, thus, a great potentially to increase production. However, persistent problems with pest and diseases have led to increasing number of farmers shifting to other crops.

This bullish production growth rate especially in key cacao producing countries is expected to continue in the coming years, as cocoa trees are sensitive to changing weather patterns. Periods of drought and of excessive rain or wind can negatively impact yield, and will continue to fluctuate as climate change intensifies. Likewise, rising cost of inputs especially fertilizer significantly affect production yield.

In the latest revised forecast released by ICCO last May 2014 for the current 2013/2014 cocoa year, world production is expected to increase by 5.9% over 2012/13 figures. On the other hand, world grinding in current year is projected to be 2.7% higher over last year. Deficit for current year is estimated at 75 thousand metric tons.

60

Percentage share of Philippines to global cacao production is less than 1%. Nevertheless, the Philippines, particularly the island of Mindanao, is among the countries in Asia seen to have a competitive advantage for cacao production given its strategic location, climatic conditions, and soil characteristics. This is borne by the increasing presence of integrators of major global players in Davao Region and in emerging cocoa producing regions in Mindanao.

In 2013, Philippine cacao bean production was at 4,831 MT with Mindanao accounting for 90%. Of the 4,366.52 MT of cacao beans produced in Mindanao, 88% came from Davao Region. Among Mindanao regions, Northern Mindanao had the 2nd highest production but volume was only about 5% of Davao’s production.

Mindanao’s production in 2013 decreased slightly by 4% over 2009 figures. Except for Davao Region and SOCCKSARGEN, production volume in all regions was lower in 2013 compared to 2009. Northern Mindanao registered the highest decline at 65% followed by Caraga at 63%. In Northern Mindanao, Bukidnon’s production went down from 466 MT in 2009 to 115 MT in 2013. The highest decrease in production volume was in 2012. In Caraga, Agusan del Norte’s production went down from 84.54 MT in 2009 to 7.14 MT in 2013. The declining trend started in 2010. Mindanao accounted as the biggest area planted to cacao of about 79%. Fifty Five (55%) in Mindanao is in Davao region and 7% from Northern Mindanao.

Philippine average yield is 0.52 Mt./hectare, Mindanao average yield is 0.59 Mt./hectare, Davao region 0.84 Mt./hectare while Misamis Oriental got 0.82 Mt./hectare, number four top producer in terms of average yield.

Table 13, recorded the existing area of 131.35 hectares, however, only about 7 hectares are producing, while, 124.35 hectares are newly planted. With the intent of Governor Emano to became the province as chocolate capital of Region X, in fact, he already sign a Memorandum of Agreement with KFI committed to established 6,000 hectares, thus, there are already farmers show their intent to plant around 6,254 hectares.

61

Growth Area/

Municipality

Cacao (Has.) Growth Area/

Municipality

Caca0 (Has.)


GBDA GALILEO

Magsaysay 1.5 107 108.5 Opol

Gingoog City El Salvador

Medina 87 87 Alubijid 250 250

Talisayan 3 517 520 Laguindingan 23 23

Balingoan 190 190 Gitagum

Sub-total 4.5 901 905.5 Libertad

MISORET Initao 1,000 1,000

Kinoguitan 85 85 Sub-total 1,273 1,273

Sugbongcogon MANLUNA

Binuangan 1.5 20 21.5 Naawan 1,000 1,000

Salay 18 260 278 Manticao 2.75 660 662.75

Lagonglong 245 245 Lugait 10 50 25.66

Balingasag 39.1 610 649.1 Sub-Total 12.75 1,710 1,722.75

Sub-total 58.6 1,135 1,193.6 Mis. Or. Total 131.35 6,169

CLAJAVETA

Jasaan 250 250

Claveria 53.5 500 553.5


Tagoloan 1 200 201

Sub-total 55.5 1,150 1,205.5

Table 14. Existing and Expansion Area of Cacao in Misamis Oriental

62


Incidenc

e

Population Area

Planted

No. of

Farmer

Produc-

tion

Old

Compo-

site

Index

Old

Rank

New

Composite

Index

New

Rank

1 BALINGASAG 48 68649 39 39 5 0.5924 12 0.68493 1

2 CLAVERIA 49 51004 54 54 0 0.4747 24 0.57682 2

3 LUGAIT 43 20100 26 26 0 0.6201 8 0.51862 3

4 LAGUINDINGAN 45 23291 0 0 0 0.76 1 0.49842 4

5 INITAO 54 29331 0 0 0 0.6763 4 0.48083 5

6 GITAGUM 47 19876 0 0 0 0.6967 2 0.47021 6

7 LIBERTAD 51 12373 0 0 0 0.6766 3 0.46677 7

8 ALUBIJID 51 31033 0 0 0 0.6539 7 0.46307 8

9 MAGSAYSAY 62 33323 2 2 0 0.5736 15 0.45787 9

10 VILLANUEVA 40 44544 1 1 0 0.6731 5 0.45529 10

11 SALAY 41 27591 18 18 0 0.536 21 0.44517 11

12 TAGOLOAN 34 69275 1 1 0 0.6582 6 0.44347 12

13 NAAWAN 53 21278 0 0 0 0.603 10 0.43846 13

14 EL SALVADOR 41 48059 0 0 0 0.6188 9 0.4283 14

15MANTICAO 48 28640 3 3 0 0.5719 16 0.42495 15

Table 15 LGU RANKING BASE ON EVSA MATRIX for Cacao


Incidenc

e

Population Area

Planted

No. of

Farmer

Produc-

tion

Old

Compo-

site

Index

Old

Rank

New

Composite

Index

New

Rank

16 TALISAYAN 45 23289 3 3 0 0.5475 19 0.40329 16

17 BINUANGAN 50 6765 2 2 0 0.5429 20 0.4026 17

18 KINOGUITAN 49 13201 0 0 0 0.556 17 0.40196 18

19 GINGOOG CITY 49 121902 0 0 0 0.4659 25 0.4015 19

20 JASAAN 38 51690 0 0 0 0.5763 14 0.40129 20

21 LAGONGLONG 49 19303 0 0 0 0.5212 23 0.38707 21

22 SUGBONGCOGON 44 10628 0 0 0 0.5483 18 0.38496 22

23 BALINGOAN 48 10175 0 0 0 0.5212 23 0.3809 23

24 OPOL 27 52108 0 0 0 0.5852 13 0.37929 24

25 MEDINA 38 33618 0 0 0 0.5237 22 0.36758 25

LGU RANKING BASE ON EVSA MATRIX for Cacao

63

Suitability Map of Cacao in Misamis Oriental

64

B. Investment Plan

The government of Misamis Oriental pursue the development of cacao industry. In fact the Governor already signed a Memorandum of Agreement with KFI, created Technical Working Group (TWG) whose goal is to develop the policy and strategy on cacao including identification of beneficiaries and validation of project area. It also aims to develop at least 1,000 hectares in 2015 up to 6,000 hectares benefitting 6,000 farmers by the year 2019 and at least 75% of cacao farm will be GAP certified. Because of its great potential local and export market, Governor Emano will extend financial and production support. Hence, there were already about 2,375 farmers signed up to participate with the project. The ultimate goal of cacao program of the province is to develop signature chocolate product and Misamis Oriental will became chocolate capital of Northern Mindanao.

65

C. Project Intervention Base on PCIP Gap Matrix Table 15: PCIP Gap Matrix Cocoa Bean value chain in Misamis Oriental

Key Gap/ Constraint in

VC Development in the

Province (from the

national & regional VCA

results)




business enabling program,

etc.)

Target Result/

Outcome, including

# of farmers

reached, if

applicable

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead &

Other Players for

subproject

Implementation

Note: identify the

lead player

Estimated

Project Cost

Risk & Risk

Management

Remarks Rank

INPUT PRODUCTION/PROVISION

Limited number of

accredited nurseries

resulting to:

Establishment of Accredited

Nurseries with bud wood/scion

groove garden with quality

varieties (high fat content and

flavour)

5 nurseries with bud

wood / scion groove

garden established &

produced 1,200,000

seedling each

GBDA-Magsaysay MISORET – Kinoguitan CLAJAVETA-Claveria GALILEO-Initao MANLUNA-Naawan

DA,PLGU, MLGU, &

Farmer

Cooperatives/PG

2,500,000 R:-Established

nurseries

produce low

quality seedlings

-unsustainable

nurseries

RM: Utilize LGU

and DA for

monitoring

quality

standards

implementation

& assistance to

comply BPI

nursery

certification

Lack of supply of grafted

seedlings of high yielding

varieties and inconsistent

quality of planting

materials avail;able in the

market

Skills training on nursery and bud

wood /scion groove gardening

establishment

Capability Building of

nursery operators

50,000

-Limited utilization of

grafted seedlings

Information Campaign on the

benefits of using quality grafted

seedlings and the existing

accredited nurseries and Plant

Now Pay later /Seedling Subsidy

Project

-Distribution of 6,000

techno guide

-Distribution of

6,000,600 seedlings

50,000

219,021,000

66



Province (from the


results)





etc.)

Target Result/

Outcome, including

# of farmers

reached, if

applicable

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead &

Other Players for

subproject

Implementation

Note: identify the

lead player

Estimated

Project Cost

Risk & Risk

Management

Remarks Rank

- Limited availability and

commercial distribution

of organic fertilizer

Upgrading and scaling up of existing fertilizer enterprises including assistance to get the necessary certification/ accreditation

5 Organic fertilizer

Center upgraded


DA,PLGU, MLGU, &

Farmer

Cooperatives/PG

250,000 R: Farmers

would not

acquire, pay and

apply organic

fertilizer in their

farms.

RM: Info

campaign to

promote benefits

and awareness.

Enforcement of

ordinances/

policy to reduce

use of chemicals

and emissions.

Financial

services

adapted to

product cycle

and farmer´s

cash flow.

Set-up of community-based organic fertilizer plant (CBOFP)

5 organic Fertilizer

Center Established

1,250,000

- Low use of fertilizer

among smallholders

due to lack of

understanding among

farmers on cost

benefits of proper and

efficient use of

fertilizer, and limited

purchasing capacity

-Capability Building on GAP Cacao -Fertilizer Subsidy Program/ Apply Now Pay Later

2 Capability Building

120,000 bags/year

100,000

72,000,000

67



Province (from the


results)





etc.)

Target Result/

Outcome, including

# of farmers

reached, if

applicable

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead &

Other Players for

subproject

Implementation

Note: identify the

lead player

Estimated

Project Cost

Risk & Risk

Management

Remarks Rank

FARMING/PRODUCTION

-Limited outreach of

existing extension

services and providers

Provide fast and efficient

extension services thru provision

of Cacao Technical Providers

Provision of 2 vehicles to technology providers/1 vehicle/District

District 1 District 2

DA,PLGU, MLGU &

Farmer

Cooperatives/PG

500,000 R: Existing

and new

cacao farmers

still hesitant to

use upgraded

technology/

better quality

plt. materials

RM:

Disseminate

success

stories on

higher yields

-Establishment of Techno-demo

showcasing GAP on Cacao

-Search for Outstanding Cacao

Farmers

5 Techno Demo 5 Outstanding Farmers


250,000

2,500,000

- Low uptake and adoption

of good agricultural

practices and sustainable

production practices

Giving Incentives to GAP Farm

Certified thru provision of GAP

Facilities and equipments

At least 50% of Cacao farm will be GAP Certified

1,500,000

-Lack of capacity to

comply with certification

requirements

Technical and Financial support

to Farmers that will comply GAP

certification

At Least 50% of cacao farmers will comply GAP Certification

500,000

-Poor FMR in the

production area

Establishment/Concreting/Rehabi

litatio-

-Upgrading of Calubo – Kitotok

Road n /Upgrading of FMR:

1.16 km

Kinoguitan

DA,PLGU,MLGU,

BLGU

10,473, 309.10



Province (from the


results)





etc.)

Target Result/

Outcome, including

# of farmers

reached, if

applicable

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead &

Other Players for

subproject

Implementation

Note: identify the

lead player

Estimated

Project Cost

Risk & Risk

Management

Remarks Rank

FERMENTATION AND DRYING

- Lack of access to

facilities to consistently

produce high quality

fermented dry beans.

-Establishment of GMP compliant common service facilities (CSF) for fermentation, drying, packing, storage, and transport services.

Established 1 CSF /Growth area

Growth area : GBDA MISORET CLAJAVETA GALILEO MANLUNA

DA,PLGU, MLGU &

Farmer

Cooperatives/PG

75,000,000

- Limited know-how and

skills on Good

Manufacturing Practices

(GMP) and Sustainable

Production

-Development of a core group of local experts to provide hands-on training and mentoring to users of postharvest facilities as embedded service of CSF -Training on GMP on Cacao

1 Core Group /CSF 1 trgn./year


DTI, DA,PLGU,

MLGU &,Farmer

Cooperatives

250,000

250,000

PROCESSING-TABLEA & CHOCOLATE

Limited product lines

-Development of new tablea-based products and Brand development and market development campaign

2 TOT on Cacao Processing and product packaging (Tablea based products)

Province Wide 100,000

Non-GMP compliant

manufacturing facilities

and processes

--Establishment of GMP compliant Cacao Processing Facilities (Tables Based)

Established 2 GMP Cacao Processing Center (Tablea Based)

District 1

District 2

DTI, DA,PLGU,

MLGU & Farmer

Cooperatives/PG

30,000,000

69



Province (from the


results)





etc.)

Target Result/

Outcome, including

# of farmers

reached, if

applicable

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead &

Other Players for

subproject

Implementation

Note: identify the

lead player

Estimated

Project Cost

Risk & Risk

Management

Remarks Rank

MARKETING

- Lack of entrepreneurial

skills

Training on Entrepreneurial skills

1 Training/year Province Wide DA,DTI, PLGU, MLGU ,Farmer Cooperatives/PG

100,000

- Current cocoa bean

production is very low.

Dissemination of information on cacao farming opportunities including success stories in a variety of ways, print materials, in-person events, videos, and main-stream media to ensure that as many farmers as possible can hear and understand the messages

Info dissemination by print and media

500,000

- Banana and coconut

farmers not aware of

opportunities and viability

of cacao –coconut and

cacao – banana

intercropping. Majority do

not have the upfront

resources to establish

cacao farms.

-Training on sustainable farming

system

-Linking existing and prospective cacao farmers to potential lenders/financial institutions through symposia/fora

2 capability Building

At least 55% of the growers access financing

100,000

150,000,000

R: Financial

arrangements

disadvantage

ous to small

farmers

RM: Provision

of technical

assistance on

credit

arrangements

/ financial

management

70



Province (from the


results)





etc.)

Target Result/

Outcome, including

# of farmers

reached, if

applicable

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead &

Other Players for

subproject

Implementation

Note: identify the

lead player

Estimated

Project Cost

Risk & Risk

Management

Remarks Rank

- Dominance of spot

transactions makes

farmers more vulnerable to

price fluctuation.

Strengthening of cooperatives

Establishment of Display Center

in all Tourist Spot of the province

1 Cooperative

/Growth Area

5 Display Center

Province Wide

1/Growth Area

DA, DTI, PLGU,

MLGU & Farmer

Cooperatives/PG

250,000

400,000

- Poor and inefficient

transport services

Provision of hauling trucks 1Hauling Truck

/Growth Area


5,000,000

71

72

IV. Institutional Arrangements for PRDP-funding

A. Implementation/ implementation supervision

The PRDP PCIP of the Provincial Government of Misamis Oriental shall be implemented through

the Creation of Provincial Project Management and Implementation Unit (PPMIU). The office shall

take the lead role in the implementation of the approved commodities included in the PCIP such as

Cacao Beans/Tablea and Tablea base product, Fresh and 1st Fry Cardava, Cassava Chipping/

Granules and abaca fiber.

During the 1st year (2014) of the implementation of the PRDP, for I-BUILD Component is the

implementation of subproject that was already approved for implementation. In the 2nd year the

preparation of PCIP base on the approved VCA, project briefing of LGUs partner, preparation of FS

for I-BUILD with the assistance of PPMIU I-BUILD and RPCO-I-BUILD and identification of lead

proponent, development of Business Plan with the assistant of PPMIU I-REAP and RPCO I-REAP.

The PPMIU I-REAP will coordinate with the Department of Trade and Industry for market

promotion.

The Cluster - refers to growth area /groups of municipalities with has similar climatic and

agronomic characteristic. Each cluster will identify a lead firm which is compost of several group of

association or cooperative proponent engaged in enterprises within a commodity value chain.

The PCIP of the province shall adhere to the provisions of the I-BUILD and I-REAP manual of

operations in the implementation of the subprojects, among others;

The selection of Lead Proponent will be subjected of the criteria set by the PRDP. The Lead

Proponent will be the major partner of the PLGU in all the enterprise to be access and funded with

the project..

The Enterprise refers to the subproject that will be funded by the PRDP I-REAP. It is the business

venture that will be undertaken by the proponent or cluster of proponents (e.g., cooperatives,

producer groups, small and medium processors, consolidators, exporters, etc.) drawn from the

PCIP.

The Enterprise Investment Agreement (EA) whereby an agreement signed between the PLGU and

the Proponent Group/Lead Proponent (and the cluster of proponents). The EA indicates the fund

sharing or allocation of the Enterprise Project Fund and the roles and responsibilities of the above

mentioned parties in the implementation of the enterprise as identified in the Business Plan.

The Implementation Management Agreement ( IMA ) an agreement among PSO, RPCO and

PLGU that spells out the implementation arrangements for all I-BUILD & I-REAP subprojects/

enterprises within a given period including the schedule of fund releases and liquidations.

73

B. Organization and Management

The effective implementation of the PRDP Provincial Commodity Investment Plan (PCIP) of the

Province of Misamis Oriental entails the following stakeholders to undertake their respective tasks:

1. National Program Coordination Office (NPCO), headed by the DA Undersecretary for Operations,

shall handle overall coordination and support, particularly in information and external

communications. It shall coordinate Program management information and monitoring and

evaluation and shall serve as the interim Program Support Office (PSO) for Luzon B Cluster.

2. Regional Program Advisory Board, headed by the DA 10 Regional Executive Director, shall provide

guidance to the Regional Program Coordination Office (RPCO) and ensure that policy directions

are carried out in project planning and implementation. It shall review and approve for funding I-

Build and I-Reap subprojects endorsed by RPCO and shall review, approve and endorse PRDP

annual regional work and financial plan to the National Program Coordination Office.

3. Program Support Office (PSO) shall oversee the regional cluster operations and support services,

disburse funds and prepare reports related to fund management and support the NPCO in

ensuring achievement of Program milestones.

4. Regional Program Coordination Office (RPCO), established in DA 10 with guidance and support

from PSO and NPCO, is the key implementing unit of Philippine Rural Development Program

(PRDP). It shall ensure full play of RFU, including mobilization of DA-related agencies. It shall

review, evaluate and validate subproject proposals submitted by Local Government Units (LGUs)

for endorsement to RPAB. RPCO shall monitor the physical and financial progress of PRDP

components following reporting arrangements prescribed in the Program Monitoring and

Evaluation System.

5. The PRDP Provincial Project Management Unit (PPMIU) of the Province of Misamis Oriental,

created through Provincial Executive Order shall oversee the implementation of the Program in the

Province. It shall determine the necessary interventions to ensure timely delivery of government

commitments to the Program. It shall coordinate program requirements with concerned national

government offices, LGUs and the private sector, if necessary PPMIU shall resolve issues and

concerns relative to the implementation of the Program and shall require regular submission to

appropriate authorities of accomplishment reports by the Program Action Teams.

There shall also be organized Action Teams that shall spearhead all activities of the

Program components.

I-Plan Team shall lead the formulation of the Provincial Commodity Investment Plan and

prepare other related documents.

74

I-Build Team shall implement the PRDP infrastructure projects.

I-Reap Team shall carry out the investment plan in rural enterprises and agri- fisheries

productivity.

I-Support Team shall ascertain sufficient allocation, timely disbursement and proper

utilization of the local counterpart funds for the Program. It shall also ensure that the Program

components and objectives are implemented and achieved and DRR-CCA dimensions are

integrated in the PRDP plan of the Province.

C. Monitoring & Evaluation

The PRDP standard monitoring and evaluation system shall be utilized by the Provincial Planning

and Development Office through the Monitoring and Evaluation Team of Provincial Agriculture

Office. There shall be periodic submission of web-based geo-tagged monitoring reports to

concerned agencies. Results and recommendations shall be used in the improvement or

modification necessary to enhance project management.

D. Social and Environmental Safeguards (SES)

The social and environmental safeguards (SES) is one of the support activities that will be

undertaken to ensure that all subprojects to be implemented are not only technically, economically

and financially viable, but are also environmentally and socially sound and sustainable. The

PPMIU-SES shall take charge of the aspect of the sound management of environmental activities,

while, the Provincial Cooperative Office in support with Office Barangay Affairs (OBA) shall be

tapped to assist in the social preparation of the proponents thru its community development affairs

section.

The SES will operate according to the provisions of the existing Philippine Government policies,

framework and guidelines (including local policies) as well as other Donor governing policies

concerning the sub-project implementation. SES consideration will ensure that the people and the

environment will not be adversely affected by any sub-projects implementation.

Thus, all PRDP sub-projects under the I-BUILD and I-REAP components shall undergo

environmental screening conforming to the environmental guidelines. Project implementation will

also determine if construction activities cause to displace and affect persons such that appropriate

resettlement, compensation and rehabilitation plans in accordance to land acquisition, resettlement

and rehabilitation framework are to be formulated for sub-project affected persons. Moreover,

affected rural communities, particularly involving the indigenous peoples and communities will be

involved at the start of the planning and design stage of sub-project in accordance with the

provisions in the IP policy framework.

75

All necessary compliance concerning the social and environmental assessment will be adopted

and will be discussed in detail in the social and environmental section of each sub-project

Feasibility Study or Business Plan.

V. PDC and/or SP Resolution endorsing the PCIP and the PLGU commitment for budget

counter parting.

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