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CAGAYAN VALLEY POSTHARVEST DEVELOPMENT PLAN

This part contains the postharvest development framework and strategies for CagayanValley. The development strategies include the proposed interventions for the regions priority

commodities and a list of possible financing institutions. The proposed interventions wereclassified as 1) postharvest infrastructure and facilities development; 2) market development; 3)extension, support, education and training; 4) research and development and policy relatedinterventions. Also included are the capsule proposals of proposed postharvest projects. This isthe result of a series of activities which the BPRE, DA-RFU 02 and five provincial governmentunits of Cagayan Valley had a collaborative undertaking.

A matrix of project interventions outlines the project implementation plan and thepossible timelines. The strategies in the implementation of the proposed projects include grantand grant-like modes, build-operate-transfer, soft loans facilities and other modes applicableunder government and non-government programs. The funding of the proposed projects can be

from various funding institutions both government and private sectors. The requirements andmechanics of funding from both the private and government sectors are included in the plan tofacilitate the access to credit and financing programs.

Postharvest Development Framework

Recognizing the significant role of postharvest in the countrys agriculture sector, thissection presents the postharvest development framework that puts together all the elementsnecessary in attaining the development goals for agriculture, in general and for postharvest inparticular (Figure 30).

The postharvest development programs, projects, activities and interventions are the vitalinputs in attaining profitable and sustainable agribusiness ventures leading to improved socio-economic well-being of the countrys farmers and fisherfolks. AFMA, DA/DILG MemorandumCircular 11 of 2004 directing DA and LGUs to formulate a development plan for postharvest andengineering projects, MTPDP and other DA Programs provide the thrusts and guidelines bywhich all interventions are implemented.

The interventions shall address priority concerns along with the critical support servicesthat facilitate the implementation, adoption and/or utilization of these interventions. Marketingsupport and conducive policy environments are also important elements that ensure successful

implementation of identified projects, programs and interventions.

DA, DA-RFUs, BPRE and other National Government Agencies, farmers, fisherfolks,non-government organizations and financial institutes must collaborate in identifying thepostharvest priority concerns that are need-specific, task-specific, location-specific, market-ledand agribusiness enterprise-oriented. Also, the associated appropriate interventions shall becarefully identified by the stakeholders so that financial and human capital investments are usedeffectively and efficiently. Thus, all efforts lead to profitable and sustainable agribusiness

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enterprises and improved well-being of farmers and fisherfolks. Hence ultimate goals of povertyalleviation, food security and global competitiveness could be realized.

Figure 30. Postharvest Development Framework

At the onset, BPRE has developed postharvest technologies that address specific needs indrying and dehydrating crops, handling and processing, food safety procedures and interventionsand other related technologies that add value, preserve quality and reduce losses. Thesetechnologies shall, after careful consideration, be used to address specific needs. There istherefore an inventory of technologies that provide some answers to priority development goalsof each of the regions and/or provinces of the country.

A list of BPRE-developed technologies is presented in Appendix 5.


AFMA(RA 8435)

DA/DILG -MC No. 11 (s

2004)

Fisheries Code

MTPDP

DAPrograms on Rice,

Corn, HVCC and

Fisheries

Improved and

accessible

location/task-specific

postharvest

technologies

Support services ,

training, extension,

marketing and policy

advocacy that

encourage

technologydevelopment and

adoption

Postharvest

development

programs, projects and

activities that address

priorityconcerns

Collaboration of stakeholders

in the implementation of

programs, projects and

activities addressing

postharvest concerns

Identificationof priority

postharvest concerns to

be addressed:

- Location-specific

- Need- or Task-

specific

- Market-led

- Integrated

agribusiness

enterprise-oriented

Profitable and sustainable

agribusiness enterprises

using postharvest

technologies and facilities

Improved socio-economic

well-being of farmers and

fisherfolks

Poverty

alleviation

Food

Security

Global

Competitiveness

Access to appropriate

technologies

Implementation of

support mechanisms

- Training

- Extension

- Marketing

- Policy advocacy

Implementation of

support mechanisms

Modernization of

agriculture andfisheries postharvest

- DA-RFUs

- LGUs

- DA, BPREand

other NGAs

- Farmers

Organizations

and other

NGOs

- FinancialInstitutions

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Regional Postharvest Development Strategies

Proposed Interventions

The following are the identified proposed interventions during the consultation and

planning workshop which are expected to address the postharvest issues, gaps and problemsdiscussed earlier and are necessary for agricultural development in Cagayan Valley.

Rice and Corn

Postharvest Infrastructure and Facilities Development

Establishment of integrated postharvest facility service center

Establishment of community-based drying center

Establishment of rice seed processing center

Establishment of corn mechanization service center (production andpostproduction)

Establishment of corn processing center

Establishment of feed mill

Provision of PHF: mechanical dryer, MPDP, hauling truck, harvester,reaper, rice mills, corn mills, moisture meter, dehuller for fancy rice

Construction of warehouses

Immediate construction and improvement/rehabilitation of damagedroads/bridges to effect a normal flow of goods and services within, to and fromthe provinces of Cagayan Valley

Construction of new and additional roads and bridges

To lobby for government to extend financial support/allocate funds for theestablishment/provision of infrastructure and postharvest facilities

Grant of soft loan program for farm mechanization

Formulate/prepare resolutions and project proposals requesting financialassistance from politicians, LGU, NGOs, private sector, foreign agency, andnational government to establish and acquire agri-infrastructures and otherfacilities

Organization of Farmers association to facilitate easy access to creditfrom lending institution to acquire postharvest facilities/equipment

Strengthening of farmers organization to come up with a resolution to

lobby for the acquisition of posharvest facilities Availment of PH facilities through cost sharing/counterparting withinterested collaborators


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Market Development

Policy advocacy for higher government support price for rice and corn

Finding niche market for commodities especially Batanes rice

Availment of NFA support service program on marketing of rice and corn

Policy advocacy on reducing rice importation to stabilize prices of riceand corn

Establish marketing linkages/ tie up with feed millers and traders

Establish market information network among cooperatives/farmers group

Empowerment/strengthening of farmers organization and cooperatives

Encourage corn farmers to organize themselves and form corncluster/federation/cooperative to have collective selling power

NFA should buy/procure corn at reasonable price

Establishment of market linkages with LGU assistance/DA initiatesmarket matching activities

Link with other agencies like DTI for marketing support Conduct of training on the use of information technology in marketing

Extension Support, Education and Training

Conduct of techno caravan, techno-demo, field days, farmer field school,TOT

Promotion for the utilization of the services of FITS in the locality

Enforcement of approved law on prohibiting highway drying

Disseminate information on the negative effect of highway

drying/alternatives to highway drying Strengthen extension delivery system

Conduct of value orientation seminar

Conduct of trainings for farmers and agricultural extension workers(AEWs) on appropriate postharvest technologies

Aggressive and massive information dissemination/campaign/promotionof the latest postproduction packages of technology for rice and corn

Education and information campaign regarding farmmechanization/Introduction of farm mechanization thru hands-on training

Frequent monitoring/visit of AEWs to farmers

Encourage the strong participation of private sector, NGOs in thepromotion of postproduction technologies for speedy technology transfer

Establishment of one-stop shop information center

Create awareness among farmers on the benefit/importance of PHtechnologies

Make arrangement with Municipal Agriculturist Offices (MAOs) forcounterparting in the conduct of trainings, establishment of techno-demos


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Conduct of retooling, encourage technicians to attend agri-business forum,conventions and workshops on latest agricultural development programs.

Conduct of training on proper postharvest handling of commodities

Capability building for farmers to equipped them of the proper postharvesthandling/technical skills on postharvest technologies, product development/value-

adding activities Promotion of cooperatives and people empowerment especially amongfarmers for them to have better access to service and financial institution

The LGU shall assist farmers/farmer cooperatives/organization to sourceout funds thru the preparation of project proposals/feasibility studies to besubmitted to financial institutions supporting agricultural projects, to politician,private sectors and even foreign entities

Conduct of training/hands-on training on the proper operation ofpostharvest facilities/equipment

Train agricultural extension workers in the field of postharvesttechnologies

Continuing extension program that will help disseminate and expandutilization of appropriate postharvest technologies

Create awareness among AEWS and farmers of the implication ofpostharvest losses and implication of proper postharvest handling thru seminarsand use of IEC materials

Create awareness among AEWs and farmers of the available postharvesttechnologies

Conduct trainings and seminars, lakbay aral, reproduction and distributionof IEC materials on postharvest technologies and related information

Information dissemination and conduct of farmer-led extensiondemonstration/technology demonstration

Use of various extension methodologies

Conduct of regular training of extension workers on appropriatepostharvest technologies

Awareness campaign on control/prevention of aflatoxin contamination incorn

Conduct of skills enhancement trainings both for farmers and AEWs

Research and Development/Policy Related and Other Interventions

R & D on low cost postharvest technologies for rice and corn R & D on small scale machines for postharvest operations

More R & D program for native rice production

Public consultation with local officials

Government to continue programs on production input subsidies

To lobby for the increase of government allocation for agricultural sector

Strict enforcement of licensing to eradicate/minimize unchecked smuggling


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HVCC


Establishment of agricultural trading post/bagsakan center with cold chain

facilities for fruits and vegetables Establishment of integrated packing house facilities for fruits and vegetables

Establishment of banana processing plant

Establishment of mango processing plant

Establishment of coffee processing plant

Establishment of cold chain facilities for garlic and vegetables

Establishment of garlic processing facility

Establishment of agricultural tramline

Establishment of Barangay Bagsakan Center

Enhancing the Nueva Vizcaya Agricultural Terminal (NVAT)

Provision of postharvest/processing equipment: chipper, hot water treatmentfacilities for mango, cold storage, refrigerated trucks, coffee huller, coffee pulper,dryer, packaging/packing equipment/material, juice extractor

Construction of warehouse for HVCC

Immediate construction and improvement/rehabilitation of damagedroads/bridges to effect a normal flow of goods and services within, to and fromthe province

Construction of new and additional roads and bridges

To lobby for government to extend financial support/allocate funds for theestablishment/provision of infrastructure and postharvest facilities

Formulate/prepare resolutions and project proposals requesting financial

assistance from politicians, LGU, NGOs, private sector, foreign agency andnational government to establish and acquire agri-infrastructures and otherfacilities

Organization of farmers association to facilitate easy access to credit fromlending institution to acquire postharvest facilities/equipment

Strengthening of farmers organization to come up with a resolution tolobby for the acquisition of posharvest facilities


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Market Development

Establishment of market linkages with different agencies/individuals/group ofindividuals

Establishment of market for organically produced HVCC Attendance/participation to trade fairs to promote HVCC products

Conduct promotion and market matching activities/finding niche market

Development of an efficient marketing system

Establishment of market linkages with LGU assistance/DA initiatesmarket matching activities

Reactivation/strengthening of farmers organization and encourage farmersto organize to establish selling power

Link with other agencies like DTI for marketing support

Conduct of training on the use of information technology in marketing

Promotion and development of small scale industries


Conduct promotion of creative and appropriate postharvest handling ofHVCC

Conduct training on improved packing/packaging techniques of HVCC

Aggressive and massive information campaign/promotion of availablepostharvest technologies for HVCC for speedy technology transfer

Attendance to regional/national symposia on HVCC postharvest handling,product development/value adding processes

The locality should have adequate knowledgeable and skilled manpowerin HVCC

Every province should have pool of experts on HVCC production andpostproduction to address problems and issues

Publication of research and development projects results on HVCC

Allocation of enough funds for extension delivery logistics

Promotion of the use of FITS in the locality

Conduct of training on processing, packaging and labeling of value-addedproducts

Recognition/giving awards/provision of incentives to organize coops,FAs, FOs

Appropriate training on PH technology of major HVCC commodities likemango, banana, pineapple and other fruits and vegetable and industrial crops

Establish techno-demo center for HVCC production and postproductiontechnologies


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Proper coordination among line agencies for convergence of support toHVCC industry

Conduct trainings on production and postproduction technologies likeharvesting, handling and processing, proper care and handling of commodities

Strengthen HVCC growers association thru conduct of regular meeting

and fora Encourage partnership from provincial to municipal LGUs in the conductof trainings both for technicians and growers


Capability building for farmers and AEWs thru trainings/seminars/lakbayaral/IEC materials to equipped them of the proper postharvest handling/technicalskills on postharvest technologies, product development/value-adding activities

Educate farmers regarding the implication of postharvest losses thruseminars and use of IEC materials

Promotion of cooperative and people empowerment especially among

farmers for them to have better access to service and financial institution The LGU shall assist farmers/farmer cooperatives/organization to sourceout funds thru the preparation of project proposals/feasibility studies to besubmitted to financial institutions supporting agricultural projects, to politician,private sectors and even foreign entities

Conduct of training/hands-on training on the proper operation ofpostharvest facilities/equipment for HVCC

Educate farmers of the benefit of value-adding/processing as an additionalor alternative source of income

Train agricultural extension workers in the field of postharvesttechnologies of HVCC

Continuing extension program that will help disseminate and expandutilization of appropriate postharvest technologies for HVCC

Create awareness among AEWS and farmers of the implication ofpostharvest losses and implication of proper postharvest handling

Create awareness among AEWs and farmers of the available postharvesttechnologies for HVCC

Conduct trainings and seminars, lakbay aral, reproduction and distributionof IEC materials on HVCC postharvest technologies and related information

Information dissemination and conduct of farmer-led extensiondemonstration/technology demonstration


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Fishery


Establishment of seaweed processing center

Establishment/provision of ice plant, cold storages and transport facilities Establishment of fish (tilapia) processing plant

Provision of mechanical dryers like MCSTD for fish andseaweeds

Provision of processing equipment

Provision of transport facilities

Provision of cheaper packaging materials

Establishment of fish paste/bagoong/patis processing center

Establishment of market outlet for fishery products

Formulate/prepare resolutions and project proposals requesting financialassistance from politicians, LGU, NGOs, private sector, foreign entities andnational government to establish and acquire postharvest facilities for fisheries

Organization of farmers association to facilitate easy access to credit fromlending institution to acquire postharvest facilities/equipment

Strengthening of farmers organization to come up with a resolution tolobby for the acquisition of posharvest facilities

To come up with bigger and smaller design/version of MCSTD

Availment of PH facilities through cost sharing/counterparting with interestedcollaborators

Market Development

Establishment of market linkages with different agencies/individuals/group ofIndividuals

Conduct promotion and market matching activities/finding niche market

Development of an efficient marketing system

Establishment of market linkages with LGU assistance/DA initiatesmarket matching activities/conduct market matching with DA-BFAR

Reactivation/strengthening of farmers organization and encourage farmersto organize to establish selling power

Link with other agencies like DTI for marketing support


Link with the buyers of seaweeds

Strengthen networking among producers and marketing tie-up thruinternet



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Aggressive and holistic promotion of fishery/aquaculture production and

postproduction technologies thru IEC distribution, conduct of regular trainingsand seminars, hands-on training, techno-demo for speedy technology transfer

Increase allocation of budget for fishery extension services

Training of existing personnel of LGU to become fishery expert

Link fish farmers to financing institutions

Strengthening of fishery programs

Regular field visit to assist fish operators

Training programs for fish handlers/processors, fish inspectors and LGUpersonnel

Conduct of training on utilization of fish by-products

Continuing extension agents training to enhance capability and skills forextension delivery

Strengthen extension services by hiring adequate fishery staff/fisheryextension agent

Conduct of training and seminars on new practices and technologies onfishery production and posthproduction for existing personnel to become fisheryexpert

Conduct of training on value-adding like drying, smoking, canning,filleting, other processing activities to fisherfolks

Sustain funding and logistic support for extension services by DA regional

and central office Encourage partnership from provincial to municipal LGUs in the conductof trainings both for technicians and growers


Strengthening of fisherfolk/capability building for fisherfolk and AEWsthru trainings/seminars, lakbay aral, IEC materials to equipped them of the properpostharvest handling/technical skills on postharvest technologies, processing,product development/value-adding activities, fish preservations, properpacking/packaging and labeling

Educate farmers regarding the implication of postharvest losses thru

seminars and use of IEC materials Promotion of cooperative and people empowerment especially amongfarmers for them to have better access to service and financial institution

The LGU shall assist farmers/farmer cooperatives/organization to sourceout funds thru the preparation of project proposals/feasibility studies to besubmitted to financial institutions supporting agricultural projects, to politician,private sectors and even foreign entities


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Conduct of training/hands-on training on the proper operation ofpostharvest facilities/equipment

Educate farmers of the benefit of value-adding/processing as an additionalor alternative source of income

Train agricultural extension workers in the field of postharvest

technologies for aquaculture/fishery production Continuing extension program that will help disseminate and expandutilization of appropriate postharvest technologies

Create awareness among AEWS and farmers of the implication ofpostharvest losses and implication of proper postharvest handling

Create awareness among AEWs and farmers of the available postharvesttechnologies for fishery/aquaculture

Conduct trainings and seminars, lakbay aral, reproduction and distributionof IEC materials on postharvest technologies and related information

Information dissemination and conduct of farmer-led extensiondemonstration/technology demonstration on fishery/aquaculture


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Proposed Postharvest Projects

List of potential projects were extracted from the interventions proposed during theconsultation and planning workshop in order to improve the postharvest industry specifically forthe commodities being prioritized by the region. It is proposed that each of these proposed

projects will establish in feasible areas in the provinces of Cagayan Valley to cater the needs ofthe farmers and fisherfolks in the area. These lists of proposed projects will also serve as aninput in the planning or decision making of the local government units of Cagayan Valley foragricultural development. It will also serve as reference to interested investors, be it local orprivate sector, and to collaborators who provide grants or financial assistance from the localgovernment, private entities and even foreign agencies.

The implementation of these proposed projects in the region will definitely improve itsagricultural environment. Their presence will provide farmers ready access of adequate andappropriate production and postproduction facilities and technologies that would empower themto become more productive and competitive and develop their capability to become

entrepreneurs. Economic impact of these projects upon sustained operationalization includeemployment generation, reduced postharvest losses, improved living status of farmers,enhancement of local economy, entrepreneurial development and farm mechanization, amongothers.

The following are the proposed projects identified of great potential in the agriculturaldevelopment of Cagayan Valley (see Table 24):

A. Establishment of Integrated Postharvest Facility Service Center for RiceB. Establishment of Community-Based Drying Center C. Establishment of Rice Seed Processing Center D. Establishment of Corn Mechanization Service Center

E. Establishment of FeedmillF. Establishment of Agricultural Trading Post/Bagsakan Center with Cold ChainFacilities for Fruits and VegetablesG. Establishment of Integrated Packing House Facilities for Fruits and VegetablesH. Establishment of Banana Processing PlantI. Establishment of Mango Processing PlantJ. Establishment of Cold Chain Facilities for Garlic and Vegetables

K. Establishment of Garlic processing CenterL. Establishment of Agricultural Tramline

Establishment of Barangay Bagsakan Center

Establishment of Coffee Processing CenterEnhancing the Nueva Vizcaya Agricultural TerminalEstablishment of Seaweed Processing Center

Establishment/Provision of Ice Plant, Cold Storage and Transport Facilities to Fishery Cooperatives andAssociationsEstablishment of Fish (Tilapia) Processing Plant

The capsule proposals of the abovementioned projects can be found in the subsequentpages. In addition, see Appendix 5 for lists of selected available postharvest facilities andtechnologies for rice, corn and HVCC, which may serve as reference.


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Table 24. Cagayan Valley Postharvest Development Program, 2010-2019

List of Projects Brief DescriptionProposed

Location

Estimated

Cost* (PhP)Possible Funding

SourceImplementing Agency

Integrated Postharvest

Facility Service Centerfor Rice

The center is either a service provider or a

business enterprise engage in deliveringpostharvest operations like harvesting, drying,warehousing, hauling, milling and marketing

Cagayan, Quirino,Nueva Vizcaya,

Isabela15-25 Million

National Government,LGU, Private Sector,

NGOs, Foreign Grant,Proponent Equity

DA-RFU 02, Cagayan Valley Local

Government Units, Farmers Group/Cooperative/Association, Private

Sector, NGO, and/or other InterestedInvestors and Collaborators

Community-basedDrying Center

The drying center will provide drying servicesutilizing combination of different dryingfacilities

All Rice Producing

Communities1-2 Million



DA-RFU 02, Cagayan Valley LocalGovernment Units, Farmers Group/

Cooperative/Association, PrivateSector, NGO, and/or other Interested

Investors and Collaborators

Rice Seed Processing

Center

The processing center will engage in a business

enterprise that includes hauling, drying,cleaning, warehousing and marketing ofregistered and certified seeds.

Isabela, Cagayan,Nueva Vizcaya,

Quirino10 Million






Corn MechanizationService Center

The project will compose of modern productionand postharvest facilities, equipment,machineries and technologies that will provide

production and postproduction services


Quirino

Large Scale20-30 Million

Medium Scale5-15 Million






Feedmill The proposed feedmill will use corn as the

major inputs and will be processed into feedsfor livestocks and fishery for local or domestic

markets.


Quirino, Batanes

8-10 M






Agricultural Trading

Post/"BagsakanCenter with ColdChain Facilities forFruits and Vegetables

The Agricultural Trading Post will be

purposefully located and technically designedto provide services to farmers in the major fruitand vegetable producing municipalities. The

project will be equipped with facilities such aspacking house, pre-cooler, cold storage andrefrigerated transport that will provide serviceson a timely and cost effective manner resultingto higher productivity and profitability to thesmall farmers and cooperatives


Quirino15-25 Million






* Estimated cost may vary depending on the desired size of the project or availability of resources


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Continuation of Table 24


Location

Estimated



Integrated Packing

House for Fruits andVegetables

The packing house will serve as a consolidation

area for fruits and vegetables that will catertrimming, cleaning, sorting, grading and

packaging of commodities

Isabela, Cagayan,Nueva Vizcaya,Quirino, Batanes

3-8 Million






Banana Processing

Plant

The plant will buy bananas from the growersand processed it into different banana products

such as chips, cakes, ketchup and other bananaproducts.

Isabela, Quirino,

Nueva Vizcaya2-3 Million






Mango ProcessingPlant

The plant will buy mangoes from the mangogrowers and processed it into different mango

products such as juice, dried mangoes, pureeand other mango products

Isabela,Nueva Vizcaya,

Cagayan5-10 Million






Cold Chain Facilitiesfor Garlic andVegetable

The project is composed of cold chain facilitieslike packing house, pre-cooler, cold storage,chillers and refrigerated truck for garlic andvegetable handling from the farm to the market

Batanes 5-10 Million






Garlic ProcessingFacility

The project will be a business enterpriseventuring on processing garlic to different

products like garlic powder, garlic granules, etc.

Batanes 5-10 Million






Agricultural Tramline

The agricultural tramline is an alternative

transport system for farmers in production areaunder extremely difficult conditions. It is ahauling facility using cables and pulleys totransport agricultural products farms to thenearest roads and agricultural inputs from thenearest roads to the farms

Batanes, Quirino,Nueva Vizcaya

1-2 Million



DA-RFU 02, Cagayan Valley LocalGovernment Units, Farmers Group/Cooperative/Association, Private




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Continuation of Table 24


Location

Estimated



Barangay BagsakanCenter

The barangay bagsakan center will serve as anopen market or trading post for agricultural

products like fruits, vegetables, fish, meat andpoultry in a barangay

Batanes 1-2 Million






Coffee ProcessingCenter

The proposed project will be a processing andbusiness center engage in consolidating coffeefrom the local producers and processing intocoffee forms (parchment or green bean)acceptable both at the local and foreignmarkets.

Nueva Vizcaya,Isabela 2-3 Million






Enhancing the NuevaVizcaya AgriculturalTerminal

The NVAT will be equipped with cold chainsystem facilities and will offer custom servicingto farmers and traders who deliver their produceat the NVAT

Nueva Vizcaya 10-20 Mill ion






Seaweed ProcessingCenter

The plant will buy seaweeds from thefisherfolks and processed it into dried seaweedand other seaweed products and will also offerdrying services to seaweed growers

Cagayan, Isabela,Batanes

1-2 Million






Ice Plant, Cold Storage

and TransportFacilities

The project aims to establish a common servicefacilities for the fisherfolk by providing or

establishing ice plant, cold storage, andtransport facility to a group of fisherfolk in fish

producing areas of the region

Coastal

municipalities ofCagayan Valley

5-10 Million






Fish Processing Plant

The plant will engage in buying fishes from thefisherfolks and processed it into different fish

products and by-products

Batanes, Cagayan,Isabela, QuirinoNueva Vizcaya,

2-3 Million



DA-RFU 02, Cagayan Valley LocalGovernment Units, Farmers Group/Cooperative/Association, Private




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Capsule Proposals of the Proposed Postharvest Projects

The following are the capsule proposals of proposed projects extracted from the list ofidentified interventions. However, these projects require further analysis in order to determinetheir feasibility prior to implementation. Proposed locations for these projects were indicated,

however, the exact location will be determined based on the need of concerned stakeholders.This is a shop list of projects which the local government of Cagayan Valley may consider toimplement. These may also serve as references to similar projects that the region or interestedinvestor is planning to develop and implement.

A. Establishment of Integrated Postharvest Facility Service Center for Rice

Proponent: DA-RFU 02, Cagayan Valley Local Government Units, Farmers Group/Cooperative/Association, Private Sector, NGO, and/or other Interested Investors andCollaborators

Proposed Location: Cagayan, Nueva Vizcaya, Quirino, Isabela

Rationale

Rice is the major commodity in the Philippine agriculture. It is the staple food of mostFilipinos and a major source of livelihood. In Cagayan Valley, rice production is one of themajor economic activities. In fact, the region is one of the top rice producing regions in thecountry. Its production in 2008 reached a total of 2.08 million mt harvested from 536,916hectares with an average yield of 3.80 mt/ha and it is more than sufficient for the requirement ofits total populace. The region contributed 12 percent to the total national rice production.However, it is estimated that around 15 percent are lost in harvested paddy (BPRE, 1996).Reasons cited include lack of good facilities such as farm-to-market roads, irrigation networks,postharvest facilities, and inappropriate postharvest practices, among others. Postharvest lossesnegate the gains achieved in production.

One way to intensify rice production is the utilization of high yielding varieties or hybridrice. This must be complemented with production inputs made available at competitive pricesand key production and postproduction facilities. The production intensification program shallbe provided with common service on postharvest facilities such as dryers, warehouses and millsin strategic locations accessible to farmers in the region. With these postharvest facilities, it isexpected that postharvest losses will be reduced. The would-be-loss grains when save will be ofhelp in narrowing the gap in achieving sufficiency.

The technologies for the postproduction for rice have been in the existence for quite sometime. These postproduction facilities however are mostly used as separate entities and bydifferent sectors. The farmers utilize these facilities in harvesting and threshing and in drying.However, these postharvest facilities are most commonly found in trading enterprises who alsocarry out the marketing of the finished products.

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Integration of improved postharvest facilities in the post production activities is veryadvantageous. It facilitates the efficient implementation of the different post productionactivities. As a result, the farmer will have reduced postharvest losses with improved quality ofrice bringing about increase income.

Significant gains have been achieved in rice production, but the development of the ricepostproduction sector has not kept pace to take full advantage of the breakthroughs. Postharvestloss figures are only indicators of a problem. Understanding the cause of losses is much moreimportant. The key postproduction system technologies for minimizing losses and improvingmilled rice quality are in drying, storage, and milling technologies. There is very little to gain iffarmers participate in the processing and trading of their rice harvest. Their best opportunity forhigher incomes is to improve their yields and lower their cost of production by means of moreefficient production and postproduction technologies. To provide a good processing service tofarmers, professionally managed processing and trading plants would be more sustainable thanfarmers cooperative mills (de Padua, 1999).

It is at this context that this project was conceptualized to help intensify rice productionin the province. The implementation of this project promises an opportunity for the farmers tohave greater access of postharvest facilities in order to improve their production and technicalknow-how and in addition, generates employment in the locality.

Objectives

1. To establish a common rice postharvest service center for farmers in the locality2. To reduce wastage of palay harvest of the farmers3. To increase the milling recovery and produce quality grains4. To increase farmers income5. To promote and/or create awareness among farmers the available postharvest

facilities/technologies for rice

Brief Description

The proposed project integrates improved and modern postharvest facilities like drying,storage, hauling and milling for efficient and effective delivery of postharvest services. Thecenter is either a service provider or a business enterprise engage in delivering postharvestoperations like drying, warehousing, hauling, milling and marketing including its by-products tothe small farmers, cooperatives and farmers organizations at reasonable fee and will engage in ascheme wherein the center buys palay, processed it and then sells as milled rice to the smallfarmers, cooperatives/farmer organizations and other individuals.

The proponent will serve as service provider and responsible in the management of thebusiness enterprise. The cost of operation and maintenance of the facilities will be covered fromthe fees collected from farmers, cooperatives and farmer organizations that will avail of theoffered services.


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Possible Component of the Integrated Postharvest Facilities Service Center

Facilities/Equipment/Specification Estimated Cost (P)

Recirculating dryers (6 tons capacity) 1,500,000

MPDP (420 sq. meter) 300,000

Tarpaulin (200 sq. meter) 60,000

Flatbed Dryer (6 tons capacity) 500,000

Storage/Warehouse 1,000,000

Multipass Ricemill (1.5 tons/hr input capacity) 3,500,000

Handtractor with trailer (16 HP gasoline engine) 180,000

Hauling Truck (50 tons capacity) 2,000,000

Facility/Dryer Shed 500,000

Moisture Meter (capacitance type) 60,000

Platform Scale/Weighing Scale (1 ton capacity) 100,000Note: Estimated cost were based on 2006 prices

Expected Output

a. Readily available milled riceb. Access to postharvest facilities by farmersc. Good quality of grain resulting from efficient handling thereby command higher price

Projected Benefit Impact

a. Employment generationb. Reduced postharvest losses thereby increased incomec. Eventual adoption of farm mechanization by the farmersd. Enhancement of local economye. Improved living standards of farmers

Implementation and Finance Alternative

The Project Proponent will be responsible for the implementation of the proposed project.Funds for the establishment of the project may come from the proponents equity, allocationfrom the local government, grants from collaborating government and non-government agencies,private sector, or even foreign agencies or loans from financial institution supporting suchprojects (Refer to the list of financing institution at Appendix 6).


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B. Establishment of Community-based Drying Center for Grains


Proposed Location: All rice producing communities in Cagayan Valley

Rationale

Drying is the removal of excess moisture from grain to its desired moisture content levelconsidered safe for storage. It is one of the most critical postharvest operations that farmers andtraders tend to take for granted. Failure to dry the grains has time and again been proven tocause considerable financial losses to both farmers and other grain handlers. Delays in drying aswell as improper drying operations downgrade the quality of farm produce, thus it implies areduction in profit.

Based on the national postproduction loss assessment for grains conducted by the Bureauof Postharvest Research and Extension (BPRE), it was found that drying was the most criticalamong the postproduction operations. Of the total 14.84% postharvest losses for rice, 4.5% wereincurred during drying activities comprising a sizeable share of 30% of the total postharvestlosses. For corn, the total postharvest losses obtained has an average of 12.7% of which 4.6%was accounted to drying constituting 37% of the total loss (TRG on Grain Postharvest, 2000).

Most of the lost grains during drying were those spilled, scattered and not collected bythe farmer. Occurrences of these drying losses were mainly contributed by unpredictable weathercondition, highway drying, limited postharvest facilities like drying pavement, mechanical dryerand moisture meters and improper drying practices like careless handling, loading and unloadingof dried kernels as well as over drying of grains.

Rice and corn production in the region must be provided with key postharvest facilitiessuch as dryers, warehouses and mills in strategic locations or in producing areas and be madeaccessible to farmers in order to complement other strategies for the intensification of productionand to improve productivity of farmers in the region. In 2008, based from BAS data, rice andcorn production in the region reached a total of 2.08 million mt and 1.48 million mt, respectively.Cagayan Valley is a consistent major grain producing region in the country.

To date, existing drying facilities of the region consist of 10,142 units of multi-purposedrying pavement (MPDP), 210 units of mechanical dryer and 121 units of flat bed dryers. Thetotal capacities of these existing drying facilities even at full utilization fall short to meet thedrying requirement of the regions grain production.

The inadequacy of postharvest knowledge, facilities and technologies in the communityrenders the majority of the farmers to use conventional sun drying. However, this method is notsuitable for all types of weather. When harvest period coincides with rainy days, farmers selltheir grains wet despite the low price because they are unable to sun dry. This problem can be


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eliminated with the use of mechanical drying. Mechanical drying offers the advantages ofreduced handling losses, maintenance of grain quality and better control of drying process.

On the other hand, one of the problems in adopting new technologies is the lack of capitalon the part of the farmers. Acquiring new postharvest facilities is quite expensive which a

marginal farmer cannot afford. This is one reason why farmers opt to use traditional drying orsell the grain wet even at lower prices. As such, the farmers cannot maximize the benefit theycould get in drying grains.

The implication of good drying practices has not been fully appreciated by most of ourfarmers. They are not aware that with proper drying and handling, losses can be reducedresulting to increase income for them. Improper drying will surely result to quantitative andqualitative losses which can be translated into financial losses on the part of the farmers andother grain handlers. Delays in drying grain as well as improper drying operation lowers thequality of farm produce. On the other hand, adoption of appropriate drying technologies willresult in greater economic return on the part of the producers and processors because of

increased storability of the grains, prevention of deterioration in quality, and attainment ofoptimum milling yield.

Geared towards increasing farmers income by reducing postharvest losses andimproving the quality of grains, the establishment of communitybased drying service center forgrain was conceptualized. These drying centers will showcase appropriate drying technologieswhich will be sustainable under the operation and management of small farmers.

The proposed project will establish one community-based drying center in every rice andcorn producing community of Cagayan Valley. This way, drying services is available anytime ofthe year right there in their community. The presence of these drying centers in the communitywill make the farmers realize the economic benefit of properly dying their produce.

Objectives

1. To promote the use of postharvest technologies for drying grain by establishing acommunity-based drying center in strategic locations;

2. To provide technical assistance to rice and corn farmers regarding the proper dryingoperation and maintenance;

3. To reduce drying losses and maintain the quality of grains; and4. To increase income of farmers

Brief Project Description

The project of establishing community drying service center was conceptualized toanswer the drying needs of the small farmers. The proposed project will compose of differentdrying facilities like flat bed dryer, multipurpose drying pavement, tarpaulin, moisture meter andhauling facilities.


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The drying center will provide drying services to the small rice and corn farmers,cooperatives/farmer organizations at reasonable cost. The cost of operation and maintenance ofthe facilities will be covered from the fees collected from farmers, cooperatives/farmerorganization that availed of the postharvest services. The Provincial Governments of CagayanValley thru its Barangay Development Council headed by the chairman or the interested

proponent will serve as service provider and as such they shall operate and manage the dryingservice center.

Estimated Project Cost

The following tables shows the facilities required and the estimated cost to establish agrain drying center which is appropriate for 100-hectare cluster of rice and/or corn areas.

Module 1

*Based on 2008 prices

Cagayan Valley Postharvest Development Plan (2010-2019)

Facility Requirement

Facilities Specification Estimated Cost*Flatbed dryer(1 unit)

Total capacity: 120 bagsDrying Time: 8-10 Hrs (from 24

down to 14% MCDrying Temp: 70-80 C

500,000

Temporary Storage (1 unit) 300,000

BPRE Moisture Meter(1 unit)

Battery operated, digital displayAccuracy: +/- 0.5% McwbRepeatability: 99%Applicable for Rice and Corn

12,000

MPDP (2 units)(P140,000/unit) 420 square meter

280,000

Tarpaulin Sheet (2 units) 100 square meter/unit 60,000

Weighing Scale (1 unit) 1,000 kg 30,000

Hauling Tractor (1 unit)prime mover: 16 HP gasolineengine

180,000

Total Cost 1,362,000

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Module 2 Community-based drying center with milling facility to be establish especiallyin rice mill deficient areas

Based on 2008 prices

Expected Output

a. Readily available drying facilities to be used by the farmersb. Provide opportunity for farmers to store dry grains while waiting for higher pricec. Improved grain quality thereby command higher price


a. Employment generationb. Reduced postharvest losses thereby increased incomec. Eventual adoption of improved drying technologiesd. Enhancement of local economye. Improved living standards of farmers



Cagayan Valley Postharvest Development Plan (2010-2019)

Facility Requirement

Facilities Specification Estimated Cost*

Flatbed dryer

(1 unit)

Total capacity: 120 bags

Drying Time: 8-10 Hrs (from 24down to 14% MC

Drying Temp: 70-80 C

500,000

Temporary Storage (1 unit) 300,000

BPRE Moisture Meter(1 unit)

Battery operated, digital displayAccuracy: +/- 0.5% McwbRepeatability: 99%Applicable for Rice and Corn

12,000

MPDP (2 units)(P140,000/unit) 420 square meter

280,000

Tarpaulin Sheet (2 units) 100 square meter/unit 60,000

Weighing Scale (1 unit) 1,000 kg 30,000

Hauling Tractor (1 unit)

prime mover: 16 HP gasoline

engine

180,000

Rice Mill (1 unit) 100,000

Total Cost 1,462,000

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C. Establishment of Rice Seed Processing Center


Proposed Location: Isabela, Cagayan, Nueva Vizcaya, Quirino

Rationale

Quality matters especially for seeds. High quality seeds, like certified seeds, ensure highyields for the farmers. Certified seeds have high germination rate of 85%, and high percentageof physical and varietal purity. Use of high quality seeds of good varieties is among the bestinterventions that will sustain increases in production. Studies have it that certified seeds alonecontribute as much as 10% increase in yield especially when the crop is properly managed(PhilRice, 1999).

The quality of rice seeds has distinct effect on the yield of rice. Therefore, an efficientseed delivery with active participation of private and public sectors, and farmer organizations cancontribute to further increase productivity. Production of good quality milled rice starts at thefarm with good quality seeds, and good crop care for uniform growth and grain size.

Cagayan Valley is a major rice producer in the country. The region produced a total of2.08 million mt of palay in 2008. Total output could be higher if all rice farmers use qualityseeds. Access to high quality seeds should be made available to farmers in order to improveproductivity.

The establishment of rice seed processing is a suitable intervention to promote the use ofhigh quality seeds. This project is very appropriate for efficient processing and storage of seeds,thus, making it available for the farmers at the right time during planting season in order tointensify rice production. Farmers group are encouraged by many governments to formcooperatives or association to engage in rice processing and trading. The idea is for farmers tobenefit from the profits of value added activities.

Objectives1. To establish a rice seed processing center to cater the need for high quality seeds2. To increase the yield and income of the farmers3. To produce high quality seeds4. To improve the seed marketing system that is favorable to both producers and farmers


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Brief Description

The processing center will engage in a business enterprise that includes hauling, drying,cleaning, warehousing and marketing of registered and certified seeds. Also, the center willcentralize the marketing of seeds in the area to avoid competition among seed growers. The

center will buy all seed of the seed growers after passing the seed testing of the Bureau of PlantIndustry or PhilRice and then sell the seeds to farmers from different barangays andmunicipalities of the provinces of Cagayan Valley. The proponent will manage the businessenterprise

The facilities and equipments shall be acquired as public or private investment. The costof operation and maintenance of the facilities will be covered from the fees collected fromfarmers, cooperatives and farmer organizations that will avail of the offered services.

Possible Component of Rice Seed Processing Center

Facilities/Equipment/Specification Estimated Cost (P)Recirculating dryers (6 tons capacity) 1,500,000

MPDP (1000 sq. meter) 500,000

Flatbed Dryer (6 tons capacity) 600,000

Warehouse/Storage 2,000,000

Forward Truck 500,000

Ten Wheeler Truck 600,000

Moisture Meter (capacitance type) 12,000

Weighing Scale 12,000

Generator Set 700,000

Furniture/Fixtures 100,000

Pallet 1,000Forklift 100,000

Expected Output

a. Readily available high quality seeds (hybrid, certified and registered seeds)b. Increased yieldc. Improve the seed marketing system of the province that is favorable to producers and

farmer consumers


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a. Increased productivity and income b. Employment generationd. Eventual adoption of HYVs by the farmers

e. Awareness of the benefits of seed processing by the farmersf. Entrepreneurial development among farmersg. Enhancement of local economy


The Project Proponent will be responsible for the implementation of the proposed project.Funds for the establishment of the project may come from the proponents equity, allocation fromthe local government, grants from collaborating government and non-government agencies, privatesector, or even foreign agencies or loans from financial institution supporting such projects (Refer to

the list of financing institution at Appendix 6).


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D. Establishment of Corn Mechanization Service Center (Production and Postproduction)


Proposed Location: Cagayan, Nueva Vizcaya, Quirino, Isabela

Rationale

Corn provides additional food for the people and feeds for livestock and poultry sectors.Although corn is the second most important cereal crop in the Philippines, corn productionremains inefficient due to the low adoption of modern technologies and high postharvest losses.To enhance production capacity and be attuned to global market requisites, there is a need toalign to the prevailing trend in the corn industry which is mechanization.

Today, corn farming can now be a profitable enterprise with corn mechanization. Cornmechanization is the efficient application of modern corn farm technologies to increase andpreserve the quality of produce and to reduce postharvest losses. It maximizes land and labor productivity thereby increasing the economic returns to the corn farmers. In general,mechanization allows easier and timely production and postharvest operations. It reducesdrudgery of field work and lowers production costs. However, efficiency of mechanization isfully attained when applied in holistic or integrated systems, rather than the segmented or partialutilization of individual technologies.

The Department of Agriculture, with BPRE taking the lead, sees mechanization as one ofthe strategies that can boost the competitiveness of the local corn industry because it is expectedto bring about higher farm productivity and increased income. Mechanization is also seen as agood step toward better product quality, reduction of losses and more competitive pricing.

Other specific benefits of farm mechanization are: (1) increased cropping intensity; (2)reduced labor requirement; (3) reduced human drudgery; (4) faster operations; (5) increasedproductivity; (6) improved quality and value of output; and (7) precise, efficient and timelinessof operations. Given these many benefits, farmers are assured of increased economic returns.

Cagayan Valley is the top producer of corn in the country. Corn production in the regionis largely concentrated in the provinces of Isabela and Cagayan. Based on BAS data, theregions volume of corn production in 2008 reached a total of 1.48 million mt planted in totalarea of 390,537 hectares.

To further intensify and increase the production efficiency of the corn industry in theregion, the establishment of corn mechanization service center is proposed. The project isenvisioned to give economic returns to corn farmers as well as the involve stakeholders.


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Objective1. To establish a corn mechanization service center accessible to farmers in the area2. To reduce production cost3. To reduce postharvest losses4. To maintain the quality of corn

5. To increase the farmers income6. To promote the available production and postproduction technologies for corn

Brief Description

The project will compose of modern production and postharvest facilities, equipment,machineries and technologies that will provide production and postproduction services on atimely and cost effective manner resulting to higher productivity and profitability to the smallfarmers and cooperatives. The farmers can actually complete his farm operation in contract tothe center.

The proponent will serve as the service provider delivering production andpostproduction operations such as land preparation, seeding, harvesting, shelling, drying andstorage to the small farmers, cooperatives and farmer organizations at reasonable fee.

The facilities and equipment shall be acquired as public or private investment. The costof operation and maintenance of the facilities will be covered from the fees collected fromfarmers, cooperatives and farmer organizations that will avail of the offered services.

Considerations in the Adoption of Corn Mechanization

. Agronomic factors like soil types, and commodities grown2. Environmental and physical factors such as climate, topography and extent ofinfrastructure support3. Availability of adequate energy supplies4. Availability of labor resources5. Farmers socio-economic conditions like farm size, income levels, generalskills, attitude and values toward the use of new technology, access to productioninputs and financial resources and farm size6. Institutional service mechanisms to support cooperatives, extension of creditand training, supply and service network and other rural-based industrialorganizations.


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Levels of Mechanization

Large Scale Mechanization

Large scale mechanization is applicable to contiguous flat lands with an aggregate area of

at least 300 hectares with good road networks, few physical borders and with corn-corn croppingpattern to maximize machine utilization.

Available Technologies for Large Scale Mechanization

Technology Specification RemarksFour-row Planter-FertilizerApplicator

No. of rows : 4Row Spacing : 60-80 cmMetering System : Pneumatic hazardSafety Requirement : PTO shield, hazed lightStandard Features : Attachment

- Replaceable seed plate- Uniform seed depth- Adjustable seed depth- Single seed drop- Adjustable fertilizer metering

- Requires a minimum of 90 hp tractor withindependent PTO

- With disc opener for both seeds andfertilizer

Available through local distributor

Financially viable under an aggregate servicearea of 300-500 ha/yr depending on initialacquisition cost

Flat area

Corn-corn cropping pattern (to maximizeutilization)

Capacity 1.5 ha/hr

Four-row Cultivator withFertilizer Applicator

Working width : 3 mCapacity of fertilizer tank : 320 litersPower required : 60 hpSafety Requirement : PTO shield, hazard lightStandard Accessories :

- Adjustable stabilizer wheels- Pneumatic fertilizer spreader- Cogged plant protection disc- Ridger with adjustable wings- Directional discs (pair)- Hydraulic unit kit for the chasis


Financially viable under anaggregate service area of 300-330ha/yr

Flat area

Corn-corn cropping pattern

Capacity 1.5 ha/hr

Boom Sprayer Boom length : 6 m with folding side

Tank Capacity : 600 liters minimumMounting : Tractor mountedSafety Requirement : PTO shield, hazard lightStandard Accessories : basic tools, instructional manualHerbicide : Pre-emergent


Financially viable under an aggregate servicearea of at least 700 ha/yr

Flat area


Capacity 1.87 ha/hr

Combine Corn Harvester No. of rows : 4Row spacing : 75 cm, adjustable from 60-80 cmType : self-propelledCapacity : 4-5 ha/day at 8 hrs operationGrain tank capacity : 2.5-4 tonsHarvesting system : with cutter bar and hydraulic controlShelling and cleaning system : axial plow type with blowerand oscillating screenTransmission system : V-belts and pulleys, fully hydrostaticchains and sprocketsTransmission type : 3 powered, 1 reverse

Tires : pneumatic wheelsPicking height : adjustable by hydraulicSafety requirements : ROPS, seatbelt and hazard lightsStandard accessories basic tools and instructional manual


Technically feasible and financially viableunder an aggregate service area of at least 685ha/yr

Flat area with minimum contiguous area o 2ha


Well developed road networks

Compatible in corn bulk handling system withaccompanying bulk truck for transportingshelled grains

Capacity 0.875/hr

LSU-type Dryer(Recirculating Dryer)

Capacity (3 turnovers)- 8 tons (24 tons/day)- 10 tons (30 tons/day)

Drying time : 20-30 hours (from 24-14% MC)Drying temperature : 60-70 CFuel : Diesel

Biomass furnace



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Medium-Scale Mechanization

Medium-scale mechanization refers to the use of machines generally powered by engineswith 32-35 hp but not higher than 70 hp. The high cost of imported machinery and unsuitabilityof large machine to present farm sizes prompted BPRE to develop medium-scale corn machinery

appropriate to the needs of the small farmers cheaper and suitable compared to the importedones. The medium-scale corn mechanization is applicable to small fragmented andunconsolidated lands.

Available Technologies for medium-Scale Mechanization

Technologies Specification RemarksBPRE Pneumatic Corn planter No. of rows : 2

Metering system : PneumaticAdjustment for row spacing : 65-75 cmHill spacing : 15-30 cmSeed depth : 5-10 cmFertilizer application rate : 3-9 bags/haFuel consumption :

Tractor 12 liters diesel/ha

Engine of planter 8 liters gasoline/haCan be attached to a medium sized tractor : 28-35 hpRated capacity : 3-3.3 ha/dayLabor requirements : 2 personsOperational cost :

P1,850/ha rental fee1

P1,500/ha rental fee2

Locally available throughaccredited manufacturer

BPRE Single Row Corn Picker Length : 273 cmWidth : 226 cmHeight : 177 cm (maximum)Picking mechanism : spiral-lugged rollersCapacity : 1 ha in 8 hrs operation at a ground speed of 2.5 kphCan be attached to medium-sized tractor : 28-35 hpFuel consumption : 17 li/haRated capacity : 1.0 ha/dayOperational cost : P2,400/ha rental fee1


Corn Sheller Type : Crushing with drum and concave

Capacity : 2 tons per hourSuitability : any size of ear corn can be shelled effectivelyShelling recovery : 99.86% at 18-21% MCPercent purity : 99.21%Power requirements : 16 hp gasoline engine or 12 hp diesel engineLength : 192 cmsHeight : 142 cmsWeight : ~ 500 kg including prime moverFuel consumption : 1.2 liters per hourOperational cost : P25/bag

Locally available through

accredited manufacturer

Flatbed Dryers Typical capacity : 30-120 bagsDrying time : 8-10 hours (from 24 to 14% MC)Drying temperature : 40-45CFuel consumption : 2-3 liters per hour (30 bag capacity)8-12 liters per hour (120 bag capacity)Kerosene operational cost : P12.35-32.85/bag


Batch Recirculating Dryer Typical capacity : 60-300 bagsDrying time : 12-16 hours (from 24 to 14% moisture content)Drying temperature : 50-60 CFuel consumption : 8-10 liters/hour (120 bags capacity)


1 Based on the tests conducted by the Postharvest Engineering Department, Bureau of Postharvest Research andExtension under the manual operation (3-in-1)

2 Mechanical planting using pneumatic corn planter


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Financially Viable Combinations of Medium-Scale Machines

Different combinations of medium-scale machines are presented below to guide prospective owners and planners on the general conditions to have profitable machineoperations. The medium machines are part of a machine pool capable of performing specific

operations under maximum service area based on machine capacities and allowable plantingperiod. Using the tractor to perform other operations will maximize utilization and will thereforegenerate more income to the investors (based on Package of Technologies on CornMechanization Manual, BPRE 2007).

Service Operations; Specifications

and Combinations of Facility

Investment

Service Conditions to have

Profitable OperationsRemarks/Potential Users

Module 1 - Land Preparation for rice and corn + corn plantinga. Two units, reconditioned 32 to 35 hptractor with rotavator

b. One unit, disk harrow (3 discs)

c. One unit, two-row pneumatic-typecorn planter with fertilizer applicator

a. Applicable in areas with rice corncropping pattern with about 30 days land

preparation period for rice and 35 daysland preparation and planting period for

corn

b. Area coverage (ha/yr):

rotavating rice fields = 180

harrowing rice fields = 135

harrowing corn fields = 158

corn planting = 87

a. Individual farmers who have theirown rice and corn areas and canrender custom service to neighboringfarmers within the barangay

b. Areas where labor is not sufficientduring peak season

c. Group of farmers

d. Approximate service area :- 180 ha for rice &- 158 ha for corn

Module 2 - Land Preparation for rice and corn + corn plantinga. One unit, reconditioned 32 to 35 hptractor with rotavator

b. One unit, disk harrow (3 discs)

c. One unit, two-row pneumatic-typecorn planter with fertilizer applicator

a. Cannot be profitable with 16% intereston investment but feasible on a soft loan(6% interest) basis

b. Can still generate income at 30 daysland preparation period for rice and 35days land preparation and planting

period for corn but not enough to recoverinvestment on its first 5 years ofoperation

c. Can cover 102 ha for rice and 77 hafor corn

a. Farmers who have their own riceand corn areas and can render customservice to neighboring farmers withinthe barangay

b. Areas where labor is not sufficientduring peak season

c. Group of farmers or a cooperativewho can service one or more

barangays

Module 3 Land preparation (rice and corn) + planting + picking (corn) + threshing and

dehusking-shelling (rice and corn)a. Two units, reconditioned 32 to 35 hptractor + land preparation implements

b. One unit, two-row pneumatic corn

planter; 2.5-3 ha/day capacity

c. One unit, single row corn picker;1ha/day capacity

d. One unit, thresher and dehusker-sheller; 40 bags/hr capacity

a. Applicable in areas following ricecorn cropping pattern withapproximately 30 days land preparation

period for rice and 35 days land

preparation and planting period for corn

b. Maximum area coverage (ha/yr):

rotavating rice = 180

harrowing rice = 135

harrowing corn =158

planting corn = 87

picking corn = 35

threshing rice = 10,800 bags/yr

shelling corn = 2,100 bags/yr

a. Farmers who have their own farmsand can render custom service toneighboring farmers within the

barangay

b. Areas where hired labor is difficultto find

c. Group of farmers who can sharetheir resources

d. Service area of about 180 ha of riceand 158 ha of corn per year


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Module 4 - Land preparation (rice and corn) + planting (corn) + picking (corn) + threshing and

dehusking-shelling (rice and corn) + hauling (rice and corn)a. Two units, reconditioned 32 to 35 hptractor + land preparation implements

b. One unit, two-row pneumatic cornplanter; 2.5-3 ha/day capacity



e. One unit trailer; 3 ton capacity

a. Applicable in areas following ricecorn cropping pattern withapproximately 30 days land preparation

period for rice and 35 days landpreparation and planting period for corn




harrowing corn =158

planting corn = 87

picking corn = 35



hauling (rice and corn) = 12,900bags/yr


barangay




Module 5 - Land preparation (rice and corn) + planting (corn) + picking (corn) + threshing and

dehusking-shelling (rice and corn) + hauling (rice and corn)

a. One unit, reconditioned 32 to 35 hptractor + land preparation implements

b. One unit, two-row pneumatic cornplanter; 2.5-3 ha/day capacity



e. One unit trailer; 3 ton capacity

a. Applicable in areas following rice-corn cropping pattern withapproximately 30 days land preparation




harrowing rice = 67

harrowing corn = 81

planting corn = 51

picking corn = 31



hauling (rice and corn) = 9,076bags/yr


barangay




Module 6 Planting (corn) + shelling (rice and corn)a. One unit reconditioned 32 o 35 hptractor

b. One unit two-row pneumatic cornplanter; 2.5-3 ha/day capacity

c. One unit dehusker-sheller; 40 cav/hrcapacity

a. Appropriate in areas with 2 seasons ofplanting corn and a single season ofplanting rice (rice-corn-corn croppingpattern) in a year


planting corn = 175

threshing rice = 6,000 bags/yr or75 ha/yr @ 80 bags/ha yield

shelling corn = 10,500 bags/yr or175 ha/yr@ 60bags/ha yield

a. Private use of farmer or group offarmers in areas where labor isextremely difficult to hire

b. Service area of about 175 ha ofcorn and 75 ha of rice per year.


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Module 7 Planting corn + threshing rice and dehusking-shelling corn + hauling rice and corna. One unit reconditioned 32 o 35 hptractor


c. One unit dehusker-sheller; 40 cav/hrcapacity

d. One unit trailer; 3 ton capacity

a. Appropriate in areas with 2 seasons ofplanting corn and a single season ofplanting rice (rice-corn-corn croppingpattern) in a year


planting corn = 175

threshing rice = 6,000 bags/yr or75 ha/yr @ 80 bags/ha yield

shelling corn = 10,500 bags/yr or175 ha/yr@ 60bags/ha yield

Hauling rice and corn = 16,500bags/yr

a. Private use of farmer or group offarmers in areas where labor isextremely difficult to hire

b. presence of road networks to allowthe use of hauling activity

c. Approximate service area:175 ha of corn and 75 ha of rice peryear.

Module 8 Land preparation (rice and corn) + planting (corn) + threshing and shelling

(rice and corn)a. Two units reconditioned 32 to 35 hptractor + land preparation implements


c. One unit thresher anddehusker/sheller; 40 bags/hr capacity



b. Maximum area coverage (ha/yr)



harrowing corn = 158

planting corn = 105


dehusking/shelling corn = 3,120bags/yr


barangay




Module 9 Land preparation (rice and corn) + planting (corn) + threshing and dehusking-

shelling (rice and corn) + hauling (rice and corn)a. Two units reconditioned 32 to 35 hp

tractor + land preparation implements




a. Applicable in areas following rice-

corn cropping pattern withapproximately 30 days land preparation





harrowing corn = 158

planting corn = 105



Hauling (rice and corn) = 13,920bags/yr

a. Farmers who have their own farms

and can render custom service toneighboring farmers within the

barangay



d. Presence of road networks to allowthe use of hauling activity

e. Service area of about 180 ha ofcorn and 81 ha of rice areas


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Module 10 - Land preparation (rice and corn) + planting (corn) + threshing and dehusking-

shelling (rice and corn)a. One unit, reconditioned 32 to 35 hptractor + land preparation implements







harrowing rice = 67

harrowing corn = 81

planting corn = 51




barangay



e. Service area of about 120 ha of riceand 81 ha of corn per year

Module 11 - Land preparation (rice and corn) + planting (corn) + threshing and dehusking-

shelling (rice and corn) + hauling (rice and corn)

a. One unit, reconditioned 32 to 35 hptractor + land preparation implements








harrowing rice = 67

harrowing corn = 81

planting corn = 51



Hauling (rice and corn) = 8,460

bags/yr


barangay



e. Service area of about 120 ha of riceand 81 ha of corn per year

Expected Output

a. Increased yieldb. Readily available production and postproduction machineries/equipment to be used

by corn farmersc. Good quality of corn


a. Increased productivity and income b. Reduced postharvest losses b. Employment generationd. Eventual adoption of corn mechanization by the farmerse. Enhancement of local economy


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E. Establishment of Feedmill


Proposed Location: Batanes, Quirino, Isabela, Cagayan, Nueva Vizcaya

Rationale

Corn is one of the major commodities grown in Cagayan Valley. The region takes prideas the top producer of corn in the country. The region produced 21 percent of the total nationalcorn production. Total corn production of the region for calendar year 2008 reached a total of1,476,879 mt harvested from a total of 390,537 hectares. Corn production of the regionconstituted largely by yellow corn, 96 percent of the total corn production (BAS, 2009).Furthermore, the region produces more than its corn requirement.

Despite the sufficiency of corn as raw materials for processing, there are only fewprocessing plants or feedmills in the region. It is therefore necessary that an additional feedmillbe established to cater the surplus production of corn in the region instead of being brought outof the region and processed in other provinces like Nueva Ecija and Bulacan.

The region has substantial fishery and aquatic resources. It has vast hectares ofdeveloped freshwater fishponds and fish cage culture projects located in different municipalitiesin the region like the one at the Magat Dam Reservoir. Aquaculture production is highlydependent on feeds and it is the major input. The bulk of cost of production in aquaculture is

7 dev't plan

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