financing fisheries - bfar

8/9/2019 Financing Fisheries - BFAR

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Fisheries Financing

Pilar F. Fontelar, Ph.D.Chief, Fisheries Industry Development Support Division

Bureau of Fisheries and Aquatic Resources


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Philippine MarineJurisdictional Boundaries

CELEBES SEA

Pacific

Ocean

BORNEO

China Sea

Archipelagic watersTerritorial watersEEZTreaty limits

Kalayaan claim

Legend

As an archipelagic country, the

Philippines has more water thanland resources. In fact, thiscountry has an abundant andrich fishery resources, that if given appropriate and adequate

financing will be able tocontribute significantly to thesolution of the perennialproblem of poverty and

unemployment. Needless to say,a solution to the ailing nationaleconomy.

Resources:


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The Bureau of Fisheries and Aquatic Resources


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BFAR TECHNOLOGY & REGIONAL TRAINING CENTERS


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Current Status of the Industry (Action Research)

BIGENTREPRENEURS

SMALL & MEDIUMENTREPRENEURS(SMEs)

I.

With DesireWith InterestWith Ability

But 0% resources

Problem: How to start?

III.

With stableBILAO

BusinessOperations

Why?

II.

ON&

OFFBusiness

OPERATIONS

Why?

FAs; POs; NGOs; LGUs; WGs; YGs; Others

(BROAD-BASED MASS - - - FISHERFOLK)


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LACK OF CREDIT FACILITY FOR THE

INDUSTRY

LACK OF ACCESS OF BROAD BASED MASSFISHERFOLK

PROBLEM:


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The Fisheries Financing Program


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Present Status of the Ph il ippine Fishery Industry:

BIGENTREPRENEURS

SMALL & MEDIUMENTREPRENEURS

(SMEs)

I.

With DesireWith InterestWith Abil ity

But 0% resources

Problem: How to start?

III.

With stableBILAO

BusinessOperations

Why?

II.

ON&

OFFBusiness

OPERATIONS

Why?

FAs; POs; NGOs; LGUs; WGs;YGs; Others

(BROAD-BASED M ASS - - - FISHERFOLK)

Fisheries Financing Program (FFP)


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GOALS

1. To improve credit delivery to FisheryIndustry

2. Generate livelihood and income

generating fishery-based activities.3. Develop an appropriate credit facility to

the different levels of stakeholders in the

industry.


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OBJECTIVES

1. Develop and implement credit modalitiesapplicable to the different fisheriesproduction and commodity;

2. Monitor and document results of theProgram for the development of policy onfisheries credit;

3. Capacitate fisherfolk association / coope-ratives and other fishery-based socialorganization.


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FFP Implementation


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I . Back ground In form at ion

Name of Organization

Address

Contact Info

Tel Cell

Fax Email

Contact Person/s

Year Established No. of Members No. of Employees

Line of Business Asset Size (exc lude land)

Products/Services

Market (domestic/international)


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I I . Proposed Financ ia l Requi rem ent

Proposed Project

Project Description( Inc lude comm odities/act ivi t ies a nd d efine f i rm and

estab li shed m arket )Project Cost


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Minimum Criteria Assessment

Must have a juridical personality, registered as an association, corporation or

cooperative with farmers and/or fisherfolk as members/shareholders.

Registered Not RegisteredRegistered With:

Must be in operation for at least 1 year. Yes No No. of Years:

Must have an accounting and internal control system.Yes No Full Implementation Partial Implementation

Must pass the following risk acceptance criteria:

1. Paid-up capital or networth of at least P150,000.00 Pass Fail Current Amount:

2. No existing past due account with any government or private

lending institution.

No Past Due With Past Due Amount: Institution(s):Willing to execute repayment plan

3. Past due ratio of not more than 25% of the consolidated loan

and accounts receivables portfolio.* Pass Fail Past Due Ratio:

4. Debt-to-equity ratio of at most 85:15 including loan applied for.* Pass Fail Debt-to-Equity Ratio:

Must have a Core Management Team (COMAT)

Yes NoIf Yes: Full Time Part TimeCOMAT: Manager Bookkeeper Treasurer

*3. Past Due Loans / Total Loans Outstanding = Past Due Ratio *4. Total Debt / Equity = Debt-to-Equity Ratio

I I I . El ig ib i l i t y Requi rem ent s


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Certificate of Registration

Articles of Cooperation

and By-Laws

List of members of the

Board of Directors

List of members of the

Core Management Team

Financial Statement (Interim) BOD Resolution authorizing

the organization and itsrepresentative to transact

business concerning the

FFP

Business Plan

IV. Doc um ent ar y Requi rem ent s


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V. BFAR Endor sem ent

Reviewed By:

________________________________________________________________

Name / Signature / Designation

_________________________________________

Date

Endorsed to the FFP Program for Evaluation:

________________________________________________________________

MALCOLM I. SARMIENTO, JR.Director, BFAR

_________________________________________

Date


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BFAR Focal Credit Person: ___________________

Office/Area: ____________ Contact No. ________


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AVAILMENT PROCESS FLOWCHART

KEY WORK AREA RESPONSIBLE ENTITY

Processing/ Approval of loan & release of fund

BFAR thru FIDSD

Designated Focal Person

FIDSD & Focal Person

FIDSD, Focal Person & BFAC

FIDSD, Focal Person & BFAC

FIDSD

FIDSD

TWG

ACPC

LBP Lending Center

Formal designation/ assignment of Focal Person

Identification of potential Beneficiary

Fisherfolk Associations/ Cooperatives (BFACs)

Short-listing/ Selection of BFAC

Compliance of BFAC with FFP requirements

Packaging of Business Plan

Submission of Loan Proposal

to BFAR Director for endorsement

Submission of BFAR-endorsed

Loan proposal to TWG

TWG to evaluate & recommend

loan proposal to ACPC Exec. Dir.

ACPC to endorse risk

coverage guarantee to LBP


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A Case In Point:

Sibunag Seaweeds Growers and

Traders Association, Inc. (SSGTA, Inc.)Municipality of Sibunag, Guimaras

Island, Province of Iloilo


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Awarding of FFP Check of PhP 5.2 Million to theSSGTA, Inc. November 2009


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SSGTA, Inc.275 FisherfolkMembers/Beneficiaries

Credit:

FFP Php 5.2 million

BFAR

Fishery Technology:

Seaweeds Farming

Social Organization:SSGTA, Inc. Market: MCPI


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JanFeb-May June July Aug Sept Oct Nov Dec

1stPlanting

Cropping

2ndPlanting

Cropping

3rdO Planting

F Cropping

4thF Planting

Cropping

5thS Planting

E Cropping

6th

A Planting

S Cropping

7thO Planting

N Cropping

8thPlanting

Cropping

9thPlanting

Cropping

Seaweeds Farming Timeline


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Seaweeds Production and Harvest Timeline

HA SEAWEEDS FARM INPUTS & INCOME PER FARMER:

Production Capital for Start-up PhP 47,205.00

Interest for 4 Months Payment (1% IR/month) PhP 1,888.20

Tota l Loanable Amount (Payable within 3-months) PhP 49,093.20

Monthly Amortization starting August to October 2010 PhP 16,364.40

June 1 - July 30 (1st Cropping)

eld 884 Kgs RDS

Gross Income (PhP 60.00/kg) PhP 53,040.00

Less: Operating Expenses PhP 47,205.00Total Net Income for 1st Cropping on July 30 PhP 5,835.00

Fa rm er 's D a i ly A l low an ce fo r A ugu st P hP 1 9 4 .5 0


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Re-planting: June 21 another hectare

June 21 - August 20 (2nd Cropping)

d 884 Kgs RDS

Gross Income (PhP 60.00/kg) PhP 53,040.00

Less: Monthly Amortization PhP 16,364.40

Less: Operating Expenses for the 2nd cropping PhP 5,110.00

Total Net Income for 2nd Cropping on August 20 PhP 31,565.60

Fa rm er 's D a i ly A l low ance fo r S ep t . P hP 1 ,0 52 .1 9Re-planting: July 10, another hectare

July 11 to Sept . 10 (3rd Cropp ing)

d 884 Kgs RDSGross Income (PhP 60.00/kg) PhP 53,040.00


Total Net I ncome for 3rd Cropping on on Sept 10 PhP 36,676.00

Fa rm er 's D a i ly A l low a nce Fo r Oct P hP 1 ,2 22 .5 3

R l ti J l 31 h t


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Re-planting: July 31 , hectare

July 31 to Sept. 31 (4th Cropping)

d 884 Kgs RDS

Gross Income (Price at PhP 60.00 kg RDS) PhP 53,040.00


Total Net Income for 4th Cropping on Sept. 31 PhP 36,676.00

Fa rm er 's Da i ly A l low ance fo r N ovem ber P hP 1 ,2 2 2 .5 3

Re-planting: August 20August 20 to October 20 (5th Cropping*)

d 884 Kgs RDS

Gross Income (Price at PhP 60.00 kg RDS) PhP 53,040.00

Total Net Income for 5th Cropping on Oct 20 PhP 53,040.00

Less: Maintenance and operatimg Expenses PhP 5,110.00

Total Net Income for 5th Cropping on Oct 20 PhP 47 ,930 .00Fa rm er 's Da i ly A l low ance fo r Decem ber P hP 1 ,5 9 7 .7 0

*5th to 9th cropping

S f N t I C i


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Summary of Net Income per Cropping(1/4 ha per Seaweeds Farmer)

5,835

.00

47

,930

.00

47

,930

.00

47

,93

0.0

0

47

,930

.00

47

,93

0.0

0

36

,676

.00

36

,676

.00

31

,565

.60

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

1st 2nd 3rd 4th 5th 6th 7th 8th 9th

Number of Cropping

Income(P

hP)

Total Net Income per Farmer = PhP 350,402.60

l f d d


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SSGTA, Inc. Utilization of FFP Credit Funds

Releases Payments Collectibles

Date Amount (PhP) Date Amount (PhP)23-Dec-09 466, 048.80 8-Jun-10 477, 159.96

29-Dec-09 684, 451.20 25-Jun-10 720, 662.00

12-Feb-10 463, 136.90 11-Aug-10 478, 416.50 PhP 1, 882, 658 .00

22-Apr-10 500, 000.00

11-Jun-10 500, 000.00

Total 2,613,636.90 Total 1,676,238.46

Production Yield Losses Value (PhP) Remaining Balance (PhP)29.49 tons RDS 1,740,000.00

(3 shipments)

Trading (4 tons) 360,000.00 1,380,000.00

Ice-ice occurence 492,000.00 888,000.00


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Issues and Concerns

1. Term of Payment does not coincide withthe production and harvest timeline ofseaweeds farming.

2. Occurrence of force majure like ice-icewas overlooked.

3. Funds was released prior to the plantingseason of seaweeds.


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Recommendations

Schedule of fund release and repaymentshould be in accordance with theproduction and harvest timeline.

There must be a provisions or safety nets

for possible occurrence of force majure likeice-icephenomenon.


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Follow Through

Activity


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Fishery Industry Financing Needs

1. Continue FFP and add more similarfinancing facility for the broad based

mass fisherfolk.

2. Provision of Financing Facility for the

Fishery based MSMEs in Aquaculture,Fishing, and Fish processing.


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Fishponds

FLAs (58,000 has)TitledOthers

Finances

GrantsPartnershipsInvestmentsCredits

Fisheries TechnologiesFisheries SpecialistPractitionersFarm Technicians

WorkersIndividual FisherfolkFisherfolk AssociationCooperativesOthers

MSMEs: Upgrading of Fishponds for GreaterProductivity

MarketInstitutional Buyers(processors)


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Status of the Philippine Fishery Industry,FY 2000-09

BROAD-BASEDMASS FISHERFOLK

BIGENTREPRENEURS

MSMEs

P t R d ti A th B d B d


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Poverty Reduction Among the Broad BasedMass Fisherfolk by 18.2% per Year

-20%

0%

20%

40%

60%

80%

100%

120%

PercentReduction

Big Entreprenuers 5% 5% 5% 5% 5% 5%

MSMEs 10% 28.2% 46.4% 64.6% 82.8% 101.0%

Broad Based Mass 85% 66.800% 48.600% 30.400% 12.200% -6.000%

Current

StatusYear 1 Year 2 Year 3 Year 4 Year 5


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Thank You

Alice C. Roque, Market Specialist

Marlene G. Calangian, Community Devt. Specialist

DA-ACPC & LBP, Funding Institution

Pilar F Fontelar Ph D Fishery I ndustry Devt Specialist

Fisheries Financing Team

financing fisheries - bfar

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