potential agricultural commodities in cdi cities for …

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page i Pre-Feasibility Study for the Upgrading of the Tagbilaran City Slaughterhouse

POTENTIAL AGRICULTURAL COMMODITIES IN CDI CITIES FOR SURGE SUPPORT

Strengthening Urban Resilience for Growth with Equity (SURGE) Project

CONTRACT NO. AID-492-H-15-00001

JANUARY 27, 2017

This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of the International City/County Management Association (ICMA) and do not necessarily reflect the view of USAID or the United States Agency for International Development.

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page ii Report on Fisheries Value Chain Analysis and Recommendations, September 2016

POTENTIAL AGRICULTURAL COMMODITIES IN CDI CITIES FOR SURGE SUPPORT

Strengthening Urban Resilience for Growth with Equity (SURGE) Project

CONTRACT NO. AID-492-H-15-00001

Program Title: USAID/SURGE

Sponsoring USAID Office: USAID/Philippines

Contract Number: AID-492-H-15-00001

Contractor: International City/County Management Association (ICMA)

Date of Publication: January 27, 2017

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page ii Potential Agricultural Commodities in CDI Cities for SURGE Support

Contents I. Executive Summary 1

II. Introduction 5

III. Methodology 6

A. Focus Group Discussion and Workshops 6 B. Key Informant Interviews, Area Visits and Validation 6 C. Review of Secondary Data 6 D. Prioritization Workshop 6 E. Value Chain Assessment 7

IV. Analysis of Promising Agriculture Products 8

A. Batangas City 8 B. Puerto Princesa City 13 C. Iloilo City 20 D. Tagbilaran City 25 E. Cagayan de Oro City 31 F. Zamboanga City 34

V. High Impact Projects and Programs 40

Tables

Table 1. Criteria for Selection of Value Chains 7 Table 2. Hog and Poultry Industry in Batangas City 10 Table 3. Production and Farm Gate Prices of Frozen Meat (Philippine Peso per Kilogram) 11

Annexes Annex 1. Value Chain Assessment Questionnaire ....................................................................42 Annex 2. Comprehensive List of Key Informants .......................................................................44 Annex 3. List of Documents Reviewed ......................................................................................48

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page iii Potential Agricultural Commodities in CDI Cities for SURGE Support

Acronyms AMAS Agribusiness Marketing Association ASEAN Association of Southeast Asian Nations BAHRR Bohol Association of Hotels, Resorts, and Restaurants BAR Bureau of Agricultural Research BODPA Bohol Dairy Producers Association BFARCCO Bohol Federation of Agrarian Reform Communities Cooperative BFDC Bohol Federation of Dairy Cooperatives CDA Cooperative Development Authority CDI Cities Development Initiative CNSL Cashew nut shell liquid CPU Central Philippine University DA Department of Agriculture DAR Department of Agrarian Reform DENR Department of Environment and Natural Resources DepEd Department of Education DOH Department of Health DOLE Department of Labor and Employment DOST Department of Science and Technology DPWH Department of Public Works and Highways DTI Department of Trade and Industry FDA Food and Drug Administration FGD Focus group discussions GFI Government financing institutions ICMA International City/County Management Association LCGA Lubigan Cassava Growers Association LEEO Local Economic Enterprise Office LIMCOMA Lipa Multipurpose Cooperative and Marketing Association LGU Local government unit MPW Mango pulp weevil NGA National government agencies NIA National Irrigation Administration NORMIN Veggies Northern Mindanao Vegetable Producers Association OCVAS Office of City Veterinary and Agriculture Services PAES Palawan agricultural experiment station PAIMC Provincial Agrarian Information and Marketing Center PCSD Palawan Council for Sustainable Development PHILMECH Philippine Center for Postharvest Development and Mechanization POPA Panay Organic Producers Association PPP Public-private partnerships PRDP Philippine Rural Development Project SIDC Sorosoro Ibaba Development Cooperative SURGE Strengthening Urban Resilience for Growth with Equity TESDA Technical Skills Education Development Authority TLMPC Tubigon Loom Weavers Multipurpose Cooperative USAID United States Agency for International Development WESVIARC Western Visayas Agriculture and Research Consortium WPU Western Philippines University WVSU West Visayas State University

USAID Strengthening Urban Resilience for Growth with Equity (SURGE) Project Page 1 Potential Agricultural Commodities in CDI Cities for SURGE Support

I. Executive Summary The Strengthening Urban Resilience for Growth with Equity (SURGE) Project has adopted the strengthening of promising value chains or supply chains as a strategy in expanding economic access and connectivity between rural and urban areas. The SURGE Project would like to ensure that the USAID/Philippines’ Cities Development Initiative (CDI) of Batangas, Puerto Princesa, Iloilo, Tagbilaran, Cagayan De Oro and Zamboanga City identify promising value chains and prioritize the development of pivotal value chain commodities for livelihood expansion and investment. This report focuses on agriculture value chain assessments conducted in all CDI partner cities where no prior value chain analyses had been done. Results of previous value chain analyses were also validated through focus groups, key informant interviews and site visits. After the validation, the project facilitated workshops where representatives from the local government, national government agencies and private sectors prioritized economically and commercially viable value chains. City reports were prepared, including the proposed value chain development interventions and potential businesses. A. Findings, Challenges and Recommendations Batangas City Priority agriculture value chains in Batangas City are feed supply, hog and poultry and processed food. Challenges to value chain development in the city include high production costs, limited area for production of feed crops, poor production and post-harvest facilities and equipment, lack of support services and ineffective enforcement of product and processing standards especially for meat. Availability of land and the potential for inter-CDI city and private-public collaboration also offer opportunities to improve the value chains. Recommendations include: (1) Identifying other sources of feed materials such as cassava and facilitating supply linkages between feedmillers and producers including possible inter-CDI cassava trading scheme; (2) strengthening of food safety, sanitation and product traceability regulations for livestock and meat products; and (3) pursuing value-added processing for meat and other food products to access new markets. The potential champions in the city are the Sorosoro Ibaba Development Cooperative (SIDC), Batangas Agribusiness Council and the Rural Improvement Club. Puerto Princesa City In Puerto Princesa, priority value chains are cashew, mango and banana. These industries receive strong support from national government agencies (NGAs) and can benefit from increasing demand for dried fruits especially cashew nuts and banana chips in the local and regional markets. Challenges, however, abound due to limited access to resources (particularly on financial) and markets, declining production, poor infrastructure, higher production costs and absence of direct linkages among producers and buyers/consolidators. The mango industry, particularly, is limited


by the ban against shipping fresh mangoes from the province. It is recommended to improve processing technologies and product standards especially for cashew, train producers on new production and processing technologies for cashew and mango and facilitate credit access and direct market tie-ups between growers and consolidators. The potential champion for all three value chains is Island Sweets, a privately-owned food processing company specializing on tropical food snacks and delicacies and promoting Palawan-made products. Iloilo City Vegetables and darag (native chicken) are the priority agriculture value chains in Iloilo City. The city receives at least ten truckloads of assorted vegetables on average per week from nearby municipalities. Darag chicken, on the other hand, is becoming popular as a specialty culinary treat in the city. Challenges include low productivity for vegetables, lack of support services in production and marketing and absence of a storage facility for vegetables. For darag chicken, production is still limited to backyard-scale due to limited availability of breeding stocks and lack of research and development on appropriate technologies for propagation of this native chicken strain. Nevertheless, there are windows of opportunity such as the growing market for organically-grown products including vegetables and native chicken, available land for expansion of vegetables and promising research efforts by a local university on commercial breeding of native chicken. In Iloilo City, the project can work with the Panay Organic Producers Association, Iloilo Vegetable Traders Association, and local farmers associations of producer municipalities. It is important to assist native chicken growers to organize themselves formally so they can enter into supply agreements and to develop a road map on darag chicken commercialization. Tagbilaran City Several agriculture value chains are proposed in Tagbilaran City, including highland vegetables, dairy, handicrafts, lowland vegetables and hog/ poultry. Common challenges are poor production technologies and support infrastructure such as storage facilities and limited access to credit. Vegetable production is threatened limited availability of suitable production areas further exacerbated by rapid land conversion to non-agricultural uses. Dairy production is constrained by limited post-harvest facilities such as cold chain while handicraft is beset with manpower concerns and limited range of product lines. The continuing growth of the Bohol tourism industry, however, drives the demand for food commodities particularly vegetables and dairy products, with the Bohol Association of Hotels, Resorts and Restaurants (BAHRR) expressing its willingness to provide market linkage to local producers of vegetables, dairy and even handicraft. Aside from taking advantage of the support from NGAs, recommendations include facilitation of supply linkages between vegetable and dairy producers with institutional buyers like BAHRR, capacity development of existing vegetable producers and assistance to local government unit and producer groups in the formulation of a vegetable industry development and marketing plan.


The project can potentially work with several champions in Bohol including BAHRR, Bohol Federation of Agrarian Reform Community Cooperatives (BFARCCO) and Tubigon Loomweavers Multi-Purpose Cooperative (TLMPC). Cagayan de Oro City In Cagayan de Oro City, the priority value chain is vegetables. Challenges are: inconsistent quality of produce resulting in product spoilage or rejection at market destinations; limited market information system on vegetable especially on prevailing prices and supply availability and lack of production, post-harvest and transport facilities for major vegetable production areas such as the city’s southwest barangays. Opportunities are existing and potential markets within the region, available land for expansion, and cooperation among public and private sectors. Northern Mindanao Vegetable Producers Association (NORMIN Veggies) is the most logical champion due to its experience and network with the government and institutional markets. Recommendations include: establishment of a vegetable traceability system to ensure good quality of produce from farm to market, facilitation of supply linkages between producers and higher-end institutional buyers and possible inter-CDI vegetable trading scheme where surplus volume from CDO can be shipped to other cities like Tagbilaran and Zamboanga. Zamboanga City Banana and cassava are the priority value chains in Zamboanga. Common challenges identified are: low productivity, poor farming practices, limited value-adding and processing facilities and persistent pest and disease problems. However, there are opportunities to expand banana and cassava production due to available lands and to pursue value-added processing to supply the growing local market for banana chips and feed-grade cassava granules. Recommended actions for cassava include: (1) facilitation of cassava supply linkages between growers and buyers and processors and inclusion of a possible inter-CDI cassava marketing scheme involving surplus producers (Zamboanga City and Cagayan de Oro City) and demand centers (Iloilo City and Batangas City); and (2) improvements in processing technologies to produce food-grade cassava by-products for the consumer market in neighboring provinces. For banana, consolidation of banana supply and possible community-based first stage processing (first-frying) with a tie-up to a banana chip processor can be explored. Lubigan Cassava Growers Association can be the champion for cassava while small-holder

banana growers can be grouped together into an association to serve as anchor group for banana. B. High Impact Projects Below are some of the high impact projects and programs in CDI partner cities:

Marketing and processing of cassava as animal feed ingredient for Batangas City, Cagayan de Oro City and Zamboanga City. Through market planning, an inter-regional feed supply model can be developed between surplus producers such as Cagayan de Oro


and Zamboanga and buyers such Batangas and even Iloilo. This supply arrangement can stabilize cassava markets in major production areas and strengthen feed supply in major demand centers. The SURGE Project may provide assistance in facilitating supply linkages between cassava producers and buyers/feed millers.

Developing a Vegetable Traceability System in Cagayan de Oro City. Implementation of a traceability system is important as it ensures good quality of produce being shipped and getting access to more lucrative markets such as supermarket chains and institutional buyers. It also monitors products against potential food safety issues and can help isolate contaminated or low quality vegetables before they are rejected at its destination. The system will also help educate producers to adopt good agricultural practices that has less impact on the environment. The SURGE Project may assist vegetable producer groups in formulating a vegetable traceability using an existing product traceability model for coconut developed by a local state university.

Assist in the development of the Puerto Princesa Agri-Pinoy Trading Center. The trading center will be established as an alternative marketing outlet for producers of various agricultural products where they can directly sell their products to buyers and wholesalers. The SURGE Project may provide technical advice in formulating an operational plan and marketing system for the proposed trading center.

Assist in the marketing center for BFARCCO. The cooperative can also be assisted in expanding its efforts to link producer groups that are located in the surrounding municipalities to markets. Vegetable producers will be linked with institutional buyers through the marketing center. The SURGE Project may consider providing technical assistance in formulating a business plan for the cooperative.

Strengthening cities as hubs for the consolidation of commodities from peri-urban areas is one of the primary focus of the SURGE Project. The project will continue to facilitate market encounters between producers and institutional buyers in order to formalize supply or marketing agreements.


II. Introduction The Strengthening Urban Resilience for Growth with Equity (SURGE) Project is an award of the Philippines Mission of the United States Agency for International Development (USAID) to the International City/County Management Association (ICMA). The SURGE Project is an activity in support of USAID/Philippines’ Cities Development Initiative (CDI), a crucial component of the broader Partnership for Growth, a White House initiated “whole-of-government” partnership between the U.S. Government and the Government of the Philippines. The CDI adopts a “whole‐of‐Mission” approach that engages a strategic array of USAID activities with the primary goal of promoting broad‐based and inclusive growth outside of Metro Manila through secondary cities that can serve as agents of economic growth. The SURGE Project’s development hypothesis is that secondary cities serve as agents of growth and contribute to the improved welfare of both urban and rural populations. To realize this objective, USAID approved the project’s first year work plan with three components: (1) improving local capacity in inclusive and resilient urban development; (2) promotion of low emission local economic development strategies; and (3) expanding economic connectivity and access between urban and rural areas. Strengthening promising value chains or supply chains is one of the project’s strategies to expand economic access and connectivity between rural and urban areas. Prior to implementing value chain interventions, however, value chain analysis must be performed to design appropriate strategies. The main objective of such analysis is to identify promising value chains and prioritize the development of pivotal value chain commodities for livelihood expansion and investment that will contribute to achieving the project’s goal of expanding urban-rural connectivity and enable secondary cities to become engines of growth for surrounding areas. This report focused on agriculture value chain assessments done in all CDI partner cities of Batangas and Puerto Princesa in Luzon, Iloilo and Tagbilaran in the Visayas, and Cagayan de Oro and Zamboanga in Mindanao. It consists of three sections on the methodology, analysis of promising agriculture products and recommendations on value chain products that the SURGE project can engage in. It partly complies with two outputs in the SURGE project’s approved year 1 work plan : (1) Output 3.3.1.1.1 (“For each CDI city, promising value chains identified [including for selected agriculture and fisheries/aquaculture products] and prioritized and in-depth localized assessments conducted”); and (2) 3.3.1.1.2 (“For each CDI city, develop high economic impact value chain programs and projects”).


III. Methodology A. Focus Group Discussion and Workshops The SURGE Project team gathered various stakeholders through focus group discussions (FGD) and workshops, with the objective of distilling the results of the analysis to identify viable value chains interventions. Key officials from the private and government sector presented industry, sector or commodity studies they had conducted. The project team also facilitated a plenary session on this topic. The participants assessed the strategic impact of the value chain on local economy and employment generation guided by the SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis and the Value Chain Assessment Questionnaire (Annex 1). B. Key Informant Interviews, Area Visits and Validation The researcher conducted first hand interviews with persons involved directly in the value chains to gather more details and validate information regarding the selected value chain. The selection of key informants interviewed was based on a set of criteria listed as follows:

Identified persons knowledgeable on the value chain targeted;

Industry player or investor;

Direct producer;

Traders, consolidators, transport operators; and

Supporting business player. The project team also visited communities, direct operating sites, facilities and production sites to validate data from both FGD and key informant interviews. The area visits aimed to provide the operational perspectives of the selected chain. The comprehensive lists of key informants can be found on Annex 2. C. Review of Secondary Data A review of all database and write-ups from both private and government sources was conducted. The listing of relevant documents reviewed is attached (Annex 3). D. Prioritization Workshop

1. Selection Criteria The SURGE Project developed preliminary lists of promising agricultural products assessed per city using the information provided by key respondents. Stakeholder engagements helped to identify a given city’s supply of agriculture products and the key drivers of change. Information gathered focused on the supply and resource base, consumer preference, market demand, profitability, marketing processes, technical competencies required and governance measures affecting production. The project conducted value chain prioritization workshops to select priority commodities using two basic selection criteria - competitiveness and economic impact (Table 1). The potential of a product to evolve into a more competitive commodity and generate additional economic growth opportunities for the surrounding peri-urban and rural areas was an important consideration.


Table 1. Criteria for Selection of Value Chains

Competitiveness Economic Impact

Robust market, as manifested by popularity and consumer preference

Product preference by institutional markets, especially tourism-driven markets

Evidence of resource/supply sustainability

Potential extent of the value chain to generate allied economic activities horizontally across urban-rural market linkages

Evident opportunities for product enhancement

Availability of competencies and technical services required to improve the product and processes in the chain

Magnitude and convenience by which expansion can be undertaken

2. Workshop Process In each city, the project presented the results of initial data gathered, particularly the preliminary list of promising commodities with potential to accelerate the growth of the city. Based on the list, a workshop with the stakeholders was conducted to trim down the initially selected priority commodities for development. The criteria for value chain selection was applied to the preliminary list of fishery commodities, employing a simple rating of high-medium-low to selected pivotal attributes of competitiveness and impact. The project developed the criteria and workshop template for prioritization of one or several value chains, which was applied as a standard prioritization tool in all workshops. E. Value Chain Assessment The project performed an assessment of priority value chains using the data and information gathered from secondary sources and highlights from the interviews and workshops. A Value Chain Assessment Questionnaire (Annex 1) was used as a guide both in data collection and analysis. The questionnaire covered topics on market access technology and product development management and organization, policies, and infrastructure. Potential value chain interventions were identified from the analysis. Thereafter, high impact projects were discussed and initially formulated.


IV. Analysis of Promising Agriculture Products A. Batangas City 1. City Profile Batangas City is a first class city with a total land area of 28,541.44 hectares, of which 81.6 percent is classified as agricultural. It has a population of 329,874 based on the 2015 census.1 The city hosts a number of large industrial companies such as First Gas Power Corporation, Pilipinas Shell Petroleum Refinery, JG Summit, Petroleum Corp, Shell Gas Eastern Inc., San Miguel Foods Corporation, First Philippine Industrial Corporation, Himmel Industries, Kepco Ilijan Power Plant, and Malampaya On Shore Gas Plant Facility. The Sorosoro Ibaba Development Cooperative (SIDC), a multi-awarded cooperative operating an integrated array of services and products, is also located in the city. The city’s robust economy can be mostly attributed to hog and poultry integration businesses, crop production (vegetable, grains and fruits) and allied services. Batangas City is known for agricultural products such as Batangas coffee, Batangas beef, the balisong (butterfly knife), smoked tulingan (skipjack tuna). The city’s agriculture sector, however, is threatened by rapid growth and urbanization. Only 23.7 percent (or 6,758.15 hectares) of agricultural land is arable. The southern part has low potential for agricultural development while the north, which is flatter, has been experiencing rapid land conversion due to low productivity, lack of irrigation, absence of regulatory and zoning implementation, and pressure from housing needs and urban growth. The city has adopted a multi-nodal, dispersed concentration approach to redirect development from the city to proposed urban growth centers or clusters of specialized spheres of influence. This is to mitigate the impacts of losing prime agricultural lands to urban growth. Two of the eight growth centers in Batangas City are in the agricultural sector. These growth centers are: 1. Sorosoro Ibaba Growth Center in the north which includes portions of Tingga Itaas, Sorosoro

Karsada, Sorosoro Ilaya, and Mahabang Parang; and 2. Bologo Growth Center in the south which covers Catandala, Maapas, Paharang Silangan,

Paharang Kanluran, and San Jose Sico. Under their Land Use Policy Framework, these agricultural areas (cropland) will:

Maximize productivity thru crop diversification;

Utilize idle lands for high value crop production;

Be covered by policy legislations enacted to create special levies on the idle lands;

Have incentives to promote public-private partnerships (PPP) for agricultural areas and agro-industrial areas (integrated hogs/ poultry, animal-based production sites); and

Be subject to the enforcement of environmental laws to protect environmental degradation of creeks and waterways from animal/ crops waste and effluent.

1 Based on the Philippines 2015 Census of Population and Housing (CPH), Batangas City


2. Priority Agricultural Commodities

a. Feed Supply Driven by the hog and poultry integration market, the feed supply value chain’s principal commodities are yellow and white corn (feed grains). There are about 60 to 70 feed millers in the cities of Batangas and Lipa, the largest two of which are SIDC and the Lipa Multipurpose Cooperative and Marketing Association (LIMCOMA). The supply of feed grains from Batangas City and adjacent municipalities fails to meet the demand for feed mills. The Batangas Agribusiness Council estimates a total daily feed grain requirement of around 400-500 metric tons (MT) or 146,000-182,500 MT annually in the Batangas–Lipa area. From its 450 hectares of corn land, Batangas City produces only 1,650 MT of yellow and white corn annually, representing less than 2 percent of the area’s total requirement. Two hundred sixty-nine farmers are involved with an average production of 2.0-4.5 tons for each hectare. SIDC consumes 180 MT of feed grains a day, producing 900 bags of various feed materials. Most of the produce, about 67 percent, consists of feed products to support its own hog and poultry farms and its members involved in outgrower schemes. The rest of the produce or 23 percent is distributed outside Batangas City. Despite this demand, only 10 percent of feed grains are sourced from the city and province of Batangas, while the rest are sourced from Mindoro, Isabela and the Bicol Region. Since feed grains form the bulk (about 70 percent) of feed materials, this value chain is critical in supporting the hog and poultry industry of Batangas City. This value chain affects 22 multipurpose cooperatives with 25,973 members. It also affects 2,370 hog growers and 33 poultry growers and cattle, goat, and native chicken producers. Challenges

Small land areas for corn production. Land for corn farming is limited with an average landholding of 1 to 2 hectares for each farmer, aggravated by expensive rental rates. Most corn lands are rented from bigger landholdings with annual rates between Php6,000 and Php10,000 per hectare.

High labor costs. Farm labor in Batangas City is relatively expensive, with rural daily rates at Php250 to Php300 and urban daily rates at Php310 to Php350. Most corn and vegetable growers hire laborers from Bicol and Mindoro as a result of high labor cost.

Poor irrigation and post-harvest facilities. The city lacks irrigation for upland farming. Post-harvest facilities are also limited.

Opportunities

Available land. Idle lands are available and can be made productive through proper incentives, policies and logistical support. Industry players, on the other hand, can access untapped agricultural lands from six nearby municipalities to increase corn production.

Support from various organizations. Producers can collaborate with a number of organizations for assistance, including the Office of the City Veterinary and Agricultural Services (OCVAS), SIDC, Batangas Agribusiness Council and member operators.


Interconnectivity with CDI partner cities. Other CDI partner cities can be the potential suppliers of feed grains. The cities of Cagayan de Oro, Zamboanga and Puerto Princesa can potentially produce the needed feed grains. Zamboanga can also produce fishmeal, while Cagayan de Oro can supply copra meal and cassava chips.

Potential Champion SIDC, the largest single operator in Batangas with 8,661 regular members and 12,315 associate members, can be a potential champion for this value chain development. It operates integrated livestock, feed mill, contract growing, rural banking, retail, rice milling, aquaculture and others. It is also open to outsourcing and expansion of raw materials for feedstock and providing services to smaller coops and integrator groups. Recommendations

Batangas City, through the City Agriculture Office, and millers should link with the academe or research groups to explore the use of alternative feed materials such as cassava chips, sorghum, copra meal, fish meal and other agricultural/fishery products.

The SURGE Project may wish to explore potential collaboration with the local governments of the CDI partner cities, including feed mill operators in Batangas City, Tagbilaran City and other areas for the supply of cassava and other feed materials as alternatives to corn.

b. Hog/ Poultry Integration The hogs and poultry industry is the largest agribusiness activity in Batangas City covering 2,370 hog growers, 33 poultry raisers and five major millers (Table 2). SIDC, an integrator cooperative, has 25,973 members with 22,000 involved in the hogs and poultry industry. The industry impacts around five barangays in the northern side of Batangas City. Table 2. Hog and Poultry Industry in Batangas City

Quantity Share (%) Hog Growers

Backyard

Commercial

2,370 2,068 302

98.42 85.88 12.54

Poultry Raisers, Native Chicken Growers, Cattle and Goat Raisers

33 1.37

Feed Millers 5 0.21

Total 2408 100.00

The industry markets 80 percent of its meat products, particularly hogs, outside Batangas City, primarily Metro Manila and adjoining cities and municipalities. The remaining 20 percent are sold within Batangas City. Challenges

High production costs. High costs of raw materials (primarily corn), labor, power and tariffs affect the hog/poultry industry. Competition with other producers and suppliers in


the Philippines as well as those from the Association of Southeast Asian Nations (ASEAN), also affect the industry.

Imported frozen meat products sold in the local market create a glut in supply. Local operators are forced to extend holding time of stocks from 120 to 140 days, incurring additional cost of feeds and overhead. A comparative analysis between production costs and farm gate prices from 2014 to 2016 shows declining margin for operators (Table 3).

Table 3. Production and Farm Gate Prices of Frozen Meat (Philippine Peso per Kilogram)

Year Production Cost

(1) Farm Gate Prices (2) Margin

(3) = (2) – (1)

2014 95 120 +25

2015 104 106 +2

2016 104 97 -7

False declaration of imported meat products adversely reduces meat prices in Batangas City. Imported entrails are declared to be used for feed material processing, for instance, are imposed a lower 5 percent tariff but are actually sold as food material. A 5-kilogram package of entrails would costs Php300 from local suppliers, but only Php80 from suppliers of imported entrails.

Poor market information system. Large commercial operators sell their products directly to processors while small scale operators sell to the local market through traders or consolidators. Large operators, which comprise 13 percent of the industry, have an advantage in marketing due to fixed forward pricing arrangements with processors. Small producers comprising 87 percent of the industry, have to deal with open markets, traders and the effect of imports. No reliable market information system has been established yet. Small producers rely on traditional methods of obtaining market information through directly contacting their frequent business partners or customers to verify trader prices.

Government regulation. Institutions and policies that regulate market prices and support local products against imports are not implemented. It also takes time for government to respond to the supply-demand situation, and offers weak support to the industry.

Opportunities

Potential transshipment of feed material supply from other CDI partner cities. Batangas City has a port for transshipment of feed materials supply from other CDI partner cities for grain supply.

Internet connectivity. Electronic resources and internet connectivity could make information system faster and easier.

Potential Champion The Batangas Agribusiness Council, composed of 60 to 70 feed millers and allied agri-servicing establishments in the Batangas-Lipa area, is active in advocacy and policy issues concerning the hog and poultry industry. The key informant is interested in feed grain outsourcing and other developmental efforts for the industry.


Recommendations

The city government of Batangas, in coordination with the National Meat Inspection Service and value chain players, should review existing regulations on meat processing to ensure that local meat processors comply with proper standards on traceability and food sanitation. It should also enforce current regulations on quarantine particularly for hogs and poultry to enhance biosecurity and minimize risks of disease outbreak. The SURGE Project may consider providing technical advice to the city government in the review of these regulations.

An important concern facing livestock and meat producers in Batangas City is the entry of smuggled imported meat products in the local market. Various industry groups such as the National Hog Raisers Association are advocating for stricter rules to curb the shipment of smuggled imported meat. The local livestock and meat producers in Batangas City should work closely with these national industry groups for a more effective advocacy campaign. The SURGE Project may consider providing technical advice to local stakeholders in formulating advocacy strategies and linking up with national industry groups.

The SURGE Project may consider assisting Batangas City and value chain players in improving the marketing of livestock products by facilitating supply linkages with wholesale retail outlets including groceries and meat shops.

c. Meat and Other Processed Foods Products Processed meat and other processed food products such as dairy, pastries and ethnic food products (i.e. processed tulingan) are other promising commodities that can be further developed and expanded in the city. At present, these products are mostly being produced by micro and small processors and sold in outlets within the city. As Batangas City is becoming an important trading and commercial hub in Southern Luzon and a jump off point to island provinces within the MiMaRoPa region, there are opportunities for supplying these processed food products to consumers and visitors in these areas. Food processors, however, need to improve the quality and packaging of their existing products by upgrading their processing practices and facilities. Expanding existing product lines through diversification or introduction of other product variants is another strategy for local processors to access new markets or widen their consumer base. Challenges

Research and development on meat-based food processing. Research and development on food processing must be supported to pursue greater added value on existing raw materials. In the livestock sector for example, majority of hogs in Batangas City are still sold either as live or meat cuts, without going through value-added processing.

Provision of food grade equipment. Most household-based meat processing use ordinary and some non-food grade materials, which cannot pass the certification requirements of the Food and Drug Administration (FDA) for a License to Operate.

Strengthening organization of women operators. Organizational management skills training for women is lacking, although technology transfer and training on food processing are available.


Market promotion and linkage. There is a need to promote Batangas City products outside of the city/province and to create a brand and trademark for Batangas-made products. Packaging, labeling, safety regulations and traceability of products are necessary for this purpose.

Opportunities

Ample supply of meat products to feed the needs of potential meat processors;

Huge potential for private-public linkages and research and development; and

Large market for meat-based processed food Potential Champion The Rural Improvement Club, composed of women and household-based organization in 25 barangays in Batangas City, is involved in food processing activities that supply the pasalubong and display centers. The organization can serve as the champion for this value chain. Recommendations

The Batangas City government can work with producers such as the Rural Improvement Club to develop branding strategies for selected Batangas-made products. The SURGE Project may link the city government to selected agencies such as the Department of Trade and Industry (DTI), which has existing services or programs related to branding.

The SURGE Project may consider assisting Batangas City in exploring linkages with research and development groups for food processing value addition of their meat and other processed food products.

B. Puerto Princesa City

1. City Profile Puerto Princesa City is the gateway to the Province of Palawan, a world renowned tourist area blessed with a myriad number of natural endowments and resources. The city has a total land area of 219,339.4 hectares comprised of 31 rural barangays and 35 urbanized barangays. Internal population is around 255,116 based on the 2015 Census of Population and Housing. Among the investment areas the city has identified in agriculture are: (1) integrated agro-marine processing; (2) coconut by-products production; (3) integrated livestock, poultry and fisheries feed mills; (4) commercial plantations for fruits and vegetables; (5) operation of cold chain facilities for agricultural products; and (6) food processing. Access of goods to the market is good since Palawan is interconnected with a good road network from north to south. The city has a port which connects the province to Manila and Iloilo City, and has an airport with four airlines operating at least 19 flights a day connecting to major airports in Luzon and Visayas. The airport is being upgraded to enable it to handle international flights. Communication for both international and local connections is supplied by seven service providers with fixed line, mobile, internet and e-mail services. Seventy-six percent of the 62 barangays and households have network coverage.


Average labor cost for the agricultural sector is Php225 a day. The tourism industry of Palawan significantly impacts the economy of Puerto Princesa City as it created huge markets for the hotel and restaurant, food and transport industries of the province. 2. Priority Agricultural Commodities There are three promising agricultural products identified for Puerto Princesa City – cashew, mango and banana. a. Cashew Cashew (Anacardium Occidintale), known locally as kasuy, is grown extensively in Palawan. It is grown in the Philippines primarily for its nuts. The cashew pseudo carp called the cashew apple, which comprise 70-88 percent of the whole fruit by weight, is not fully utilized on a commercial scale. Region IV-B, also known as MiMaRoPa (Mindoro, Marinduque, Romblon and Palawan), accounts for 25,978 hectares out of the total 28,600 hectares or 91 percent of cashew production in the Philippines. The Province of Palawan is the leading producer of cashew in the region with 14,692.8 hectares of land devoted to cashew production. In 2012, it harvested 13,183 MT of cashew nuts from 2.2 million bearing trees. About 15 to 25 percent of Palawan’s cashew are processed and sold in Puerto Princesa while the remaining volume is shipped to Manila and other provinces. Puerto Princesa City accounts for 10.3 percent of provincial production. About 7,272 farmers, 78 consolidators, local buying agents, 100 processors and the wholesaler/retailers in and around Puerto Princesa City are affected by the industry. Cashew-based farming system has been well-developed and piloted. The Department of Agriculture - Palawan Agricultural Experiment Station (PAES) and local government unit (LGU) nurseries can be sources of quality planting materials for bud-wood gardens. Technology demonstration areas are available at the farmer level showcasing promising technology for cashew production and processing. Along the value chain, farmers get only five percent share in income while assemblers get 3 percent, consolidators 11 percent, processors 28 percent, and retailers 53 percent. Since growers rarely go into value adding, their income is the lowest in the chain. With an average net income per hectare of Php10,680 a year, cashew production as a stand-alone crop yields marginal profits. Challenges

Limited access to resources. Farmers have limited access to improved varieties of planting materials and to credit facilities, the latter primarily due to the absence of collateral. Consolidators, on the other hand, have limited purchasing capital to buy in bulk.

Decline in production volume. Based on comparative data in cashew production in Palawan between 2005 and 2012, the hectarage dropped to 77 percent, yield to 82.5 percent, and productivity to 50 percent. Assessment by the Provincial Agriculturist Office estimates that 70 percent of cashew production in the northern municipalities are ageing unproductive and are vulnerable to pests.


Inefficient production. For every kilo of cashew nut produced, three kilos of shell waste is disposed due to lack of skilled workers in the use of decorticators, poor processing system, among others. Processing equipment and facilities such as manual sheller for whole nuts and coal-fueled dryer are lacking, underutilized or unutilized. Hence, the quality of cashew nuts is not at par with outputs from mechanized nuts.

Importation. Processed cashew nuts are being imported from Vietnam, which competes with local supply. Local cashew production is primarily marketed in outlets such as souvenir shops, groceries and some tourist establishments like hotels and restaurants.

Poor infrastructure. Several access roads to main highways are not all-weather roads, contributing to high logistical costs. Unreliable network signals for fast communication from buyers to cashew production areas affect efficiency of product delivery.

Weak inter-firm relationships/supply chain governance. No existing organized group among cashew farmers has been identified. Thus, information sharing on farming technology is limited. The absence of formal relationships and coordination also exist between consolidators, traders and processors.

Competition is high among traders. Moderate sharing of processing technology is observed among processors but not in an organized mode. There is localized but minimal coordination among processors and manufacturers through the Roxas Processors and Manufacturers Association.

Opportunities

Available support services from the government and the academe. Agriculture departments of state colleges and universities can serve as learning centers for farmers (e.g., Western Philippine University can teach how to process cashew shells). Support services from the Department of Agriculture (DA) and the Philippine Rural Development Project (PRDP) must be taken advantage of, particularly in the construction and rehabilitation of farm-to-market roads. Farmers can also depend on the DTI on updated price information and on DA’s Agribusiness Marketing Assistance (AMAS) for its regular market matching program. The Department of Science and Technology (DOST) can establish a village level processing facility.

Available resources. Low interest financial assistance from government financial institutions (GFIs) is available. In terms of production-related resources, producers can maximize existing technology to process cashew nut shell to industrial products. Post-harvest processing technology is available from the Philippine Center for Postharvest Development and Mechanization (PHILMECH) and the Western Philippines University (WPU). Basic equipment has been downloaded to community-level processors.

Growing demand. The domestic market for cashew nuts is unsaturated due to the growing number of hotels, pasalubong centers and restaurants. Hence, farmer-processor groups with better collaboration must explore potential institutional markets.

Enabling environment and policies. There are three local and national policies which will directly affect the industry: (1) the creation of the Palawan Cashew Industry Council; (2) inclusion of cashew into the sub-network under the Philippine research and development and extension agenda of the DA’s Bureau of Agricultural Research (BAR);


and (3) the issuance of the Philippine National Standards for cashew kernel affect local and national policies (PNS-BAFPS 59:2008).

Potential Champion The most logical champion for the cashew value chain is Island Sweets, a privately-owned food processing company specializing on tropical food snacks and delicacies. The owners are also members of the local chambers of commerce and strong advocates in the promotion of Palawan products. They are also active in other development work in the community such as values formation, counseling advisory and consultative roles in the city council. The company has access to technology, market information and linkages to other private sectors. The owners also are willing to share their technology, time, connections and markets as champions for the value chain. Their product mix will also utilize other value chains identified in the city.

Recommendations

The city government can request for technical assistance from the DA to establish a barangay-based seedling nursery for cashew. The seedling nursery is envisioned to provide quality cashew seedlings to support the city’s cashew production expansion efforts.

The city government can request the DA for agri-extension services to help cashew farmers increase existing farm productivity through the introduction of intercropping technologies. Existing cashew farms can be intercropped with other short-term crops like vegetables, root crops and commercial crops such as banana and cacao.

The city government can tap DOST for research and development on possible uses of other cashew by-products such as cashew fruit and cashew nut shell liquid (CNSL).

The city government can pursue the implementation of the Agri Pinoy Trading Center Project which will serve as a major consolidation and trading point for various agricultural products from production areas within the city and its neighboring areas. The SURGE Project may consider providing technical assistance to develop an operation and marketing plan for this trading center.

The SURGE Project may introduce producers with rural banks and microfinance groups for them to access appropriate specialized lending windows.

The SURGE Project may link producers with private sector groups such as Island Sweets for market linkage and to improve product quality and access to value-added processing equipment.

b. Mango This value chain assessment is based on the carabao variety of mangoes (Mangiferaindica). Puerto Princesa City produces 44 percent of Palawan’s mango production and occupies 53 percent of total land area for mango production, making mango the second highly produced fruit after cashew. Despite its significant economic value, mango production in Palawan is hampered due to the presence of the mango pulp weevil (Sternochetusfrigidus) or MPW. In 1987, the Bureau of Plant Industry (BPI) banned the export of fresh mangoes from Palawan to contain the spread of MPW. Nevertheless, processed mangoes can be marketed outside of Palawan.


Mango production in Palawan grew by 20 percent growth between 2009 and 2013. In 2013, the Province produced 7,501 MT from 117,344 bearing trees. Among the estimated 14,164 mango growers in Palawan, about 6,006 or 42 percent are from Puerto Princesa City. Puerto Princesa City is the consolidation point for marketing mangoes. Three main traders distribute mango products to 100 retailers around the city. Spot buying, through the MPW detector facility, and contract buying are the standard purchasing systems. Only one mango processor operates in Palawan, the Essential Fruits Incorporated. It has a rated capacity of 10 tons a day although utilization has not been maximized. At present, it only taps 0.61 percent of Puerto Princesa City’s mango production for raw materials. The company sells 30 percent of its processed mangoes to the local market and exports the rest outside the province (20 percent in Manila, 25 percent in Boracay, 20 percent in Singapore, and 35 percent in Africa). The City Agriculture Office appears to be the key influence to the mango industry governance. There is no strong organization among growers, whose vertical relationship with processors is also weak. The market situation in Puerto Princesa City and the rest of Palawan for mangoes is highly influenced by the growth in commerce and population. This is partly driven by the tourism industry and rapid population growth. Supply from Iloilo City are sold in Puerto Princesa City’s markets during off season production. Challenges

Mango Pulp Weevil infestation. The MPW has been a problem since 1987 and has resulted to a lack of external markets for Palawan mangoes. Currently, detection machines/facilities are insufficient to eradicate the pests.

Inputs and equipment limitations. Mango production is limited by high cost of inputs, as well as the lack of production equipment, irrigation for upland areas and x-ray machines.

Weak relationships and institutional support services. No organized groups among farmers exist and formal relationships within the value chain are weak. Institutional support is lacking and uncoordinated to strengthen these groups and relationships.

Transport and logistics issues. Farm-to-market roads, particularly within interior areas, need to be constructed or upgraded to improve access between producers and buyers.

Lack of a master plan for the industry. No road map for Palawan’s mango industry has been drafted to guide the industry’s development. Thus, initiatives of the local government and producers are not well-synchronized and integrated to effectively address the industry’s most important concerns in production, post-harvest, marketing, value-added processing particularly the issue on MPV control and eradication.

Opportunities

Available financing sources. The Land Bank of the Philippines, CK-Plus Cooperative and Dungganon, a Grameen-type credit window operated by the Negros Women for Tomorrow Foundation, Inc. can extend credit to the industry.


Available resources. Non-financial services can be obtained from DA, LGUs (Province/City Agriculturist), Palawan Council for Sustainable Development (PCSD), Department of Agrarian Reform (DAR), Philippine Chamber of Commerce and Industry (PCCI), DOST and DTI.

Potential Champion Similar to cashew, the most logical champion for the mango value chain is Island Sweets, a privately-owned food processing company specializing in tropical food snacks and delicacies. Recommendations

Puerto Princesa City Government and the Palawan Mango Growers’ Association need to collaborate to address the mango industry’s main concerns such as advocating for policies on land conversion and supporting research and development on and appropriate facilities for MPW detection and eradication.

The city government and local growers may request assistance from DA for mango seedlings for growers’ mango replanting and expansion efforts.

The city government can promote value-added processing by linking up growers with private processors, research and development agencies and academic institutions for training on mango processing technologies (i.e. drying, juice processing) or possible equipment grants.

The SURGE Project may consider assistance in convening key players such as the city government, Palawan Mango Growers Association, DA and other support agencies to formulate specific action plans to address important concerns on production, post-harvest, processing and marketing including policy advocacy on the MPW issue.

c. Banana The banana industry is one of the priority agri-based industries identified in Palawan’s provincial commodity mapping and in the Provincial Development and Physical Framework Plan. During the FGD, participants chose banana as a priority value chain for the following reasons:

Banana farmers consider the plant as an equivalent to a cash crop generating weekly cash flows for the daily needs of the households;

It is an alternative food source to supplement rice and corn;

The crop can be promoted easily;

It can be grown in marginal lands with low input requirements;

The crop impacts a large number of farmers all over the province; and

Segments of the value chain remain untapped. Bananas (Musa Acuminata) are grown for local consumption and for the export market. In fact, bananas are one of the country’s top dollar earners. The major cultivars grown are: saba, cavendish, lakatan, latundan, bungulan, and cuarenta dias (also called Senorita or silk bananas). The Philippines is the only country worldwide that produces the Saba variety, giving the country a high edge in the banana chips market as Saba is the best variety for processing into chips. The country is also the third largest banana producer in the world and the top producer in the ASEAN


Region, accounting for 47.13 percent of total regional production of 18,346,236 MT in 2013. The Philippines cultivated 183,479.01 hectares of Saba in 2013, with Mindanao accounting for 41 percent of area planted. This value chain study focuses on the saba/cardava variety (Musa Acuminata x Balbisiana). Saba bananas are processed into various product forms – chips, sauce, flour, vinegar, wine, ketchup, animal feeds, wrapper/plate, fiber and snack foods – and used in Filipino dishes. This versatility in uses accounts for its high economic value among rural Filipinos. Data from the Philippine Statistics Authority (PSA) shows that Region IV-B ranked 11th in terms of national Saba production and area planted. Within the region, Palawan province with Puerto Princesa City ranked second after Oriental Mindoro as the biggest saba producer with an average yield of 5.84 MT per hectare, a figure way below the national average yield of 14.07 MT per hectare. The saba variety is grown extensively in Palawan and Puerto Princesa City, primarily as a backyard crop and in small farms. In 2014, the province produced 30,952 MT of saba. Banana production in Palawan, however, has been increasing at an average rate of 9.5 percent per year based on data for the period 2011-2014. Challenges

Limited access to resources. High-quality disease-free planting materials and tissue culture laboratories are limited. Farmers lack the willingness, skills and capital to invest in quality planting materials, production technology and good agronomic practices. Use of organic fertilizers is limited due to lack of supply.

Small farmers lack capital and credit facility for production, consolidation and processing. Most credit facilities provide assistance to cooperatives and/or groups, but no existing active cooperative has been formed in the banana industry. Limitations of collateral, low financial literacy, irregular cash flows and absence of lending products designed for small holders, lack of organization among producers and value chain players hamper the servicing of the financial needs of the chain.

Low production volume. Production volume of bananas is relatively low due to the size of land area allotted for banana production. Processing facilities are lacking and cost of processing is high, particularly processing that requires electricity. Farmers have limited access to quality post-harvest handling and facilities, especially among buying stations, resulting to high levels of losses.

Market access. Farmers have limited access to potential markets and reliable market information, especially on the supply and demand for banana products. Due to problems of small banana producers, farm gate prices are extremely low, leaving the farmers with marginal profits.

Poor infrastructure. Some production areas are inaccessible due to lack of good roads. Because of poor infrastructure, growers are not able to access markets as well as needed extension and other support services.

Weak relationships. There is no active organized group of banana growers at the local level. Farmers also are not linked with the end-buyers such as traders, consolidators and processors.


Opportunities

Growing market. Banana chips is a major export product of the Philippines, with the food processing market segment as the largest segment. Traders/consolidators interviewed indicate an increasing trend in selling saba bananas outside of Palawan. Palawan has a competitive advantage versus Mindanao to sell to Manila due to its proximity, which results in lower farm gate prices (by almost 50 percent) for Palawan- sourced bananas. With Palawan’s vast untapped land areas, expansion of saba bananas poses a huge potential considering its advantages.

Available resources. The LGUs and government line agencies are the main providers of non-financial services to the banana industry in Palawan. The DA and the LGUs, through their provincial, city and municipal Agriculture Offices, can provide farmers with technology, linkage and trainings to enhance their productivity. These offices are the nearest governance (industry champions) in the chain.

Potential Champion The most logical champion for the banana value chain is still Island Sweets, a privately-owned food processing company specializing on tropical food snacks and delicacies. Recommendations

The city government should collaborate with DA and private sector groups to promote the establishment of private plant nurseries and seedling banks.

The city government, through the DA’s Agribusiness Marketing Division, may establish contacts with key buyers, consolidators and processors to explore supply or marketing agreements with banana producers.

The SURGE Project may consider providing assistance to the city government in facilitating market matching activities between producers and key buyers.

The city government should collaborate with the Department of Public Works and Highways (DPWH) to include critical farm-to-market roads linking production areas to major highways in the agency’s annual road construction or upgrading program

C. Iloilo City 1. City Profile Iloilo is a port city dating back to the Pre-Spanish period. The city was built out of trading and commercial activities with visiting merchants from both the east and west. Sugar, rice, handwoven cotton, silk, porcelain, spices and other traded goods formed the early commercial products passing through its bustling port. The city has a population of 447,992 based on the 2015 census2. Only 4.37 percent of Iloilo City’s total land area of 7,834 hectares is devoted to agriculture, which is often threatened by conversion to other uses, primarily residential, commercial and industrial.

2 Based from the Philippines 2015 Census of Population and Housing (CPH), Iloilo City


In 2008, Iloilo produced only 5,064.68 MT of rice, which is 9.76 percent of its total rice consumption of 51,883.48 MT. This was reduced further to 3,018.77 MT or 5.6 percent in 2010. Agricultural productivity and areas for production have both been declining due to the pressures of urbanization, drought, typhoons and uneconomic scales of production. Iloilo fruits, vegetables and root crops are mostly imported from the nearby municipalities of Leon, Alimodian, Lambunao, Tubungan, Calinog and Miag-ao, as well as from the provinces of Negros Occidental (Kanlaon) and Guimaras. Temperate vegetables originate from Baguio and Cagayan de Oro, while spices are often imported from China and Taiwan. Based on interviews with traders and retailers, consumers prefer agricultural products such as carrots, cabbage, onions, broccoli from outside the province due to their taste and longer shelf life. Traders and retailers are willing to buy either local or imported products as long as the quality, price and regularity can be assured. For poultry and other meat products, Western Visayas produced 85,636 MT and 90,821 MT of chickens in 2011 and in 2012, respectively, which makes it the top fifth producing region in the Philippines. It also ranked fourth in egg production with 15,963 MT produced in 2012. The region’s contribution to national poultry production is 6.14 percent for meat and 7.45 percent for eggs. Western Visayas had a sufficiency level of 187.98 percent for poultry production in 2012 except in one area – duck eggs, which are sourced from Luzon for the production of balut (a local delicacy). Iloilo has four poultry dressing plants, seven poultry processing plants (class AA), three storage plants with capacity ranging from 80 to 120 tons, seven feed mills with capacity of 9,600 MT a month, and commercial poultry farms. Based on the Comprehensive Land Use Plan (CLUP) formulated by Iloilo City, the remaining agricultural zones are to be administered as follows under their proposed land use:

Careful conversion and reclassification of agricultural lands into non-agricultural uses by private landowners through close coordination with the DA, DAR, National Irrigation Administration (NIA), Department of Environment and Natural Resources (DENR), and other local and national government offices and agencies;

Retention of agricultural lands and the Sustainable Agriculture and Fisheries Development-2 in accordance with best economic value and in compliance with national and local laws and policies on land conversion and reclassification;

Ensuring good quality of water bodies adjacent to agricultural zones through minimal use of chemicals and fertilizers by farmers;

Regular monitoring of wastewater discharges from neighboring commercial plants and establishments to assure good quality of irrigation waters; and

Establishment of feeder and farm-to-market roads within the agricultural zones.

2. Priority Agricultural Commodities The priority commodities proposed for the city are vegetable production and darag (native chicken). a. Vegetables (Lowland and Highland) Limited land and growing population are the key drivers of this value chain. The key municipalities that supply Iloilo City with vegetables and root crops are: Lambunao, Calinog, Leon, Alimodian, Tubungan, and San Miguel. Highland vegetables are sourced from Baguio (Benguet), Bukidnon via Cagayan de Oro City, and to some extent Kanlaon in Negros Occidental.


On average, five truckloads of vegetables from the Calinog, Leon, Alimodian, and Lambunao operate deliveries at least twice per week (or, in some cases, as needed basis). Vegetable supplies from Luzon arrive twice a week by boat, while the Cagayan de Oro supply comes twice a week through one boat that plies through the Cagayan de Oro-Iloilo-Manila route. Based on key informant interviews conducted in Bukari, Leon and Calinog, around 100 farmer growers live in the Bukari area. Each farmer has an average of one hectare, while landholding can range between one to five hectares. Most farmers are self-financed and plant between one to three crops on relay basis. Potential area for expansion is estimated at around 5,000 hectares although these are public lands managed by the DENR. Marketing is done directly through the Calinog bagsakan (trading center) or along the nearest roadside where assemblers pick up the produce. Communication is done through mobile phones. Based on statistics from the Calinog Municipal Agriculturist, the usual traded products in the Calinog bagsakan are: tomatoes (8,343 MT), bell pepper (6,253 MT), eggplant (3,640 MT), and sweet bell pepper (1,738 MT). Prices in the bagsakan area are affected by supplies coming in from Cagayan de Oro City, Baguio City, and Kanlaon.

Challenges

Low productivity per unit area. Farmers employ traditional and low yielding technology resulting in low production volumes and productivity. This is further aggravated by erratic weather patterns.

Lack of support services and resources for producers. Producers need the following to improve their productivity and income: agricultural extension programs, research and development, access to post-harvest facilities (cold storage), and a good display area in the Iloilo City supermarket are also needed.

No storage facility for vegetable deliveries. A warehouse for vegetables with a controlled environment must be established to minimize damage from heat and handling.

Poor connectivity. Connectivity between traders and farmers, variability of price and data generation are required to match demand to supply. Transport cost due to bad road networks should also be reduced.

Increase variability of vegetable types. The area is 700-900 meters above sea level (MASL) and is capable of producing highland vegetables. Comparative advantage is needed to see the feasibility of competing with exports from outside the province.

Threat of land conversion from agriculture to tourism. Bukari rice lands are being converted to summer houses or for tourism purposes.

Truck ban policy. The local policy on the truck ban must be changed since it limits the time allowed for trucks to enter the market site. The duration of the truck ban coincides with the shipping schedules (Manila, Cagayan de Oro) and delivery of truckers from outside Iloilo.

Quality standards and detection of illegal use of chemicals and pesticides. Farming practices are not standardized and regulated. Some growers do not adhere to


recommended vegetable farming practices and use agro-chemicals indiscriminately. Organic product certification is not yet being implemented in the city or province.

Poor location of bagsakan. The current site for vegetable trading in Iloilo City is not ideal due to waste management issues, pilferage, leaking roofs, congestion and presence of pickpockets. It also lacks water, power connection and basic utilities. The site must be relocated to unclog traffic and provide better facilities.

Opportunities

Growing market for vegetables. The market for vegetables, and organic and healthy products, in Iloilo is growing driven by population increase and tourism, particularly from conventions, hotels and restaurant operators.

Available lands. Lands available for agriculture expansion should be maximized since the current land utilization for vegetable production is still low.

Untapped interconnectivity between the city and municipal LGUs Interconnectivity between municipal LGUs and Iloilo City, particularly on market administration, and the Municipal Agriculture Offices for production, is untapped.

Iloilo market upgrading. The need to upgrade the Iloilo market provides a window of opportunity to improve the existing system of vegetable trading in the city.

Potential Champions The Panay Organic Producers Association (POPA), a group of individuals from the private sector, advocates for natural, healthy and organic food products, are best positioned to champion the value chain as they have their independent resources and linkages, and are organized to address policy issues, government linkages and advocacy. The Iloilo Vegetable Traders Association and the Local Farmers Associations of producer municipalities work for sectoral interest to improve their situation in relation to market facilities through policy improvements and market linkages. The role of the Local Economic Enterprise Office (LEEO), particularly in market administration, and the municipal agriculture offices of the concerned LGUs can support the proposed interventions. The LEEO is mandated to promote economic activities and manage local enterprises such as markets, terminals and city-operated utilities. Recommendations

The city government can tap the assistance of DA and the Cooperative Development Authority (CDA) to help organize farmers into associations or cooperatives. By organizing into formal organizations, farmers can consolidate production and enter into supply agreements with institutional buyers and other partners.

The SURGE Project may provide information and advice to local producers and entrepreneurs on possible trading opportunities with other CDI cities on vegetables and other agricultural commodities. Through this information, producers in CDI cities may be


able to take advantage of emerging opportunities for various commodities depending on seasonality and demand-supply situations.

b. Darag (native chicken) Production Darag is the generic term for the Philippine native chicken strain that is indigenous to and dominant in Western Visayas. The strain evolved from the red purple fowl (Gallus gallusbankiva). Locally known also as labuyo or alimbuyog, it is distinguished by its red wings and black feathers and tail wings. The darag native chicken is unique in flavor, has a nutritive value, can adapt to a wide range of environmental conditions, has a low maintenance and higher resistance to diseases compared to the commercial breeds. Darag native chicken is one of six focus commodities for the science and technology for Region VI. The DOST - Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development allocated funding for the research and technology packaging for darag native chicken production and commercialization. Several academic institutions in Iloilo City have also supported this promotion for the commodity. These institutions include the West Visayas State University (WVSU), University of the Philippines Visayas, DA - Western Visayas Agriculture and Research Consortium (WESVIARC), Aklan State University, Cadiz State University, and Iloilo State College of Agriculture in Dingle. Some private groups are also champions for the value chain including the POPA, Hacienda Malling Multipurpose Cooperative and individuals such as the Regional Magsasaka Siyentista Joselito Padadera, Professor Marlou Ang Lopez, and Entrepreneur Johny Que, among others. WVSU and the Central Philippine University (CPU) have independently done production models for the commercialization of the commodity. The areas for improvements in the value chain are: (1) breeding for mass production; (2) organic feed formulation/feeding system; and (3) organic or natural disease prevention and medication. The demand for Darag is driven by the tourism sector, restaurant operators that specialize on native chickens as main raw material (e.g. Tatoy’s, native roast chicken stalls, Iloilo batchoy operators), and increasing market for organic/healthy food products. In the first year of 2012, the BAS recorded 19,165,761 of chickens produced in Region VI. Around 13,1350,851 native chickens were sold in the market compared to 4,123,174 broiler-type chickens. Operators of food chains using native chickens also cited the difficulty of getting supplies and the high cost of darag. The operators, however, are willing to buy even at high price since their consumers insist and prefer them over the broiler-type chicken. Challenges

Production issues. Production of good quality darag chicken is both inadequate and inconsistent to meet local market demand. This is due to problems in commercialization of the breeding program and lack of standardized feed formulation and feeding system.

Linkages to credit facility and marketing tie-ups. Producers do not have access to credit facility and have very limited markets. Thus, producers are not encouraged to expand production or improve the quality of their native chicken.


Opportunities

Research and development efforts. Two academic institutions in the city are undertaking research and development of native chicken production. These institutions can be tapped to help address critical problems in breeding, feeding and disease control.

Organic movement. Producers must maximize the strong support for the organic movement and a growing demand for healthy and organically-grown products in Iloilo City.

Potential Champions The following academic institutions are potential champions: WVSU, UP Visayas, CPU, Aklan State University, Cadiz State University, Iloilo State University. For the private sector, there is POPA and several individuals. POPA is a group of individuals from the private sector who are advocates of natural, healthy, and organic food products. Members come from the business sector, farmers, media, doctors, technology providers and the academe. They are best positioned to champion the product as they have their independent resources and linkages, and are organized to address policy issues, government linkages, and advocacy. The Iloilo Vegetable Traders Association and the Local Farmers Associations of producer municipalities work for sectoral interest to improve their situation in relation to the market facilities through policy improvements and market linkages. The role of the LEEO, particularly in market administration, and the municipal agriculture offices of the LGUs can support the proposed interventions. The LEEO is mandated to promote economic activities and manage local enterprises such as markets, terminals and city operated utilities. Recommendations

The city government can tap the expertise of academic institutions such as WVSU, UP Visayas and other state universities to collaborate on developing strategies to commercialize the production of darag production. One strategy is to define an economic scale module for the native chicken technology (target for household levels) that can be used for commercial production.

The SURGE Project may provide assistance in convening key stakeholders such as producers, the city government, DA, academic institutions and other groups to discuss key issues in darag chicken production and marketing and formulate action plans to address them. The stakeholders may then decide to organize into a darag chicken industry council to advocate for the development of the industry.

D. Tagbilaran City 1. City Profile Tagbilaran City, a second class component city, is the provincial capital and the principal gateway of Bohol. With its fast growing economy, the city was ranked as the most competitive city in


Central Visayas in 20153. The Asian Institute of Management Policy Center also recognized Bohol as one of the 20 “Most Competitive Cities in the Philippines” and “Pinoy Cities on the Rise” in 2005 and 2007, respectively, and first in the quality of life category for the same two years. Tagbilaran City lies on the southwestern part of the Bohol province and has a total land area of 32.7 km2 (3,270 hectares) with around 13 km of coastline. With 15 barangays, Tagbilaran’s total population is 105,051 based on the 2015 census4. Major livelihood sources in the city are agriculture (livestock raising, backyard agriculture) and fisheries (mariculture, aquaculture and scale fisheries), followed by tourism and the service sector, commerce and industries. Agricultural land is limited to 10 percent of its total land area and has been dwindling due to conversion. Crops take up 38 percent of remaining agricultural lands, while livestock and poultry take up 15 percent and 20 percent, respectively. About 28 percent of agricultural production is on fisheries. 2. Priority Agricultural Commodities For Tagbilaran City, five promising products were identified – highland vegetable products, dairy production, handicrafts, lowland vegetable products and hogs/poultry production. a. Highland Vegetable Products The end-market that drives the highland vegetables value chain is the local tourism sector: hotels, restaurants and resorts in Tagbilaran and Panglao. Products needed under the chain include lettuce, broccoli, sweet bell pepper, carrot, cabbage, salad tomato and other temperate vegetables. The supply of highland vegetables comes from Bukidnon through the Cagayan de Oro Port as local producers have a hard time to meet the demand for these vegetables. Approximately, 6 to 10 truckloads of mixed vegetables arrive each week at the Tagbilaran Port. At an average gross value of Php20 per kilogram landed in Tagbilaran, the approximate value for 6 to 10 truckloads at 3 tons per load would be Php360,000 to Php600,000 a week. Four barangays were identified as prospective vegetable production areas in Sierra Bullones and Jagna, where 30 vegetables traders operate. There are potentially 200-300 growers, majority of whom are women.

Challenges

Limited area for highland vegetable production. A visit to highland areas of Bohol (Ubay, Jagna, Sierra Bullones) confirmed the limitations on highland vegetable production. The elevation is limited to 970 MASL, the highest point accessible by land transport, and the terrain is highly irregular and mountainous. The land suitable for vegetable production is also limited to around 200 hectares and competes against rice production. Vegetables are grown in alternate cycles with rice as the main crop.

3 This is based on the component cities category of the 2015 Cities and Municipalities Competitiveness Index of the National Competitiveness Council of the Philippines. 4 Based from the Philippines 2015 Census on Population and Housing, Tagbilaran City


Poor data collection and analysis. The City Agriculture Office lacks systematic data collection and analysis on production volume, demand, sales, and other pertinent information.

Other challenges. Farmers interviewed cited the following limitations: water supply, market and price fluctuation, source of credit, technology, farm tools, transport, organizational functionality, updated technology and source of seeds.

Opportunities

Existing demand from the tourism industry. The Bohol Association of Hotels, Resorts, and Restaurants (BAHRR) has a list of needed vegetables with corresponding schedules, volume and prices, which vegetable growers can use in production planning.

Potential Champions Since tourism is the primary driver of this value chain, BAHRR can be the local champion. Another potential champion for the vegetable value chain is the Bohol Federation of Agrarian Reform Communities Cooperative (BFARCCO), which has a membership of 20 primary cooperatives and operates the Provincial Agrarian Information and Marketing Center (PAIMC) in Tagbilaran City.

Recommendations

The city government may consider designating an area where local vegetable growers can sell their produce. The area can be a stall within the existing market or a strategic area in the city where growers can display and market their produce on a regular basis.

The city government may request assistance from the DTI to help strengthen organizational capacity of participating cooperatives and associations through training on basic organizational management, operations, marketing and financial management.

The SURGE Project may look into the potential of promoting trading of highland vegetables between Cagayan de Oro and Tagbilaran to support the latter’s demand requirements.

The SURGE Project may provide technical assistance to the City Agriculture Office in developing its capability to gather data on vegetable production including inventory of highland vegetable growers and their locations. These baseline data will help the City Agriculture Office identify strategic vegetable growers’ groups and formulate appropriate plans and programs to assist them.

b. Dairy Production Dairy production in Bohol has only been operating for eight years and involves an estimated 400 households, 60 percent of which are women-headed. There are approximately 2,000 heads of milking cows of various ages and 125 heads of milking carabaos. Two major dairy producers group operate in the province: the Bohol Dairy Producer Association (BODPA) and the Bohol Federation of Dairy Cooperatives (BFDC). Based on current data, BODPA produces 250 to 300 liters a day, with potential capacity of 500 liters a day. Products


include fresh and flavored milk, dairy based pastries, flavored drinks, ice cream and cottage cheese. Tourism and local needs drive the dairy value chain, particularly the feeding program of the Departments of Health (DOH) and Education (DepEd) for elementary school children. BAHRR expressed its desire for dairy producers to develop capacity to supply yoghurt, ice cream, mozzarella cheese and fresh milk, as hotels currently source most milk products outside Bohol. Challenges

Lack of facilities. Milk storage, processing and cold chain facility must be established to optimize production and expand market coverage. The dairy industry of Tagbilaran/Bohol should be developed for the tourism market and domestic consumption.

Opportunities

Presence of support organizations. Producers must collaborate with the government agencies such as the Philippine Carabao Center, National Dairy Corporation, PRDP, DA, DTI, DOST, DOH and DepEd to access services and projects that can support the development of the dairy industry

Demand from the tourism industry. The local tourism industry is one of the potential market for dairy producers. BAHRR expressed its need for certain dairy products including yoghurt, ice cream, mozzarella cheese and fresh milk.

Potential Champions Since tourism is the primary driver of this value chain, BAHRR can be the local champion for the chain. On the production side, BODPA and BFDC can be the champions for this value chain. Recommendations

BODPA can request assistance from DOST and other academe-based research and development offices for development of new milk-based product lines and other value-added processing technologies.

BODPA can link with National Dairy Corporation to obtain modern technologies and practices in feeding nutrition and good husbandry which would improve the quality and volume of milk.

BODPA can request DA assistance for additional postharvest equipment (refrigerated vans, chillers, containers) and DTI support in improving packaging materials.

Provincial or city government may consider working with BODPA and other stakeholders to formulate policies that promote food safety and traceability.

The SURGE Project may provide market linkage to BODPA through facilitation of supply contracts with prospective buyers and institutional markets.

c. Handicrafts The handicrafts value chain in Bohol is driven by the combined demands of the tourism industry, local population and other parts of the country. Loom weaving utilizes raffia fibers extracted from young, unopened buri leaves from buri palm trees that are abundant in Bohol. The woven raffia


is the priority product under DTI’s “One Town, One Product” Program. The raffia fiber is then knitted to create table placemats, bags, conference kits and special fabrics. One of the successful loom weaving groups in the province is the Tubigon Loom Weavers Multipurpose Cooperative (TLMPC), recently recognized as one of Region VIII’s best performing Shared Service Facilities after improving productivity, incomes and jobs. Based in Barangay Pinayagan, Tubigon, TLMPC was established in 1985. The cooperative occupies two buildings and operates 58 looms. It employs 58 weavers, 85 percent of which are women. It has four raffia suppliers from Albuerquerque, Buenavista and Inabanga towns. Some of TLMPC’s products that are high in demand are those created for architectural finishes, which have been extremely successful in China and Japan hotels, as well as in resort chains in Asia. New markets include Macao and European markets. Domestically, TLMPC markets its products to Manila, Cebu and display centers in Panglao and Tagbilaran City. Challenges

Declining workforce. Capacity has been slowing down due to an aging work force. Hence, training of new, younger weavers is needed to continue the craft to be able to increase production.

Lack of research and development. Weavers depend on clients’ custom designs and external assistance to improve products. Exposure to local and international weaving industries can help weavers in updating their designs, skills and technologies.

Need for new markets. TLMPC should be linked to new markets, especially higher end fashion markets, to expand its existing customer base and increase product value.

Opportunities

Existing resources and support. Support from national government agencies is available for this industry, especially since the woven raffia is the priority product under DTI’s “One Town, One Product Program”. DTI and DOST provide TLMPC with technical and marketing linkage support and have proposed to expand the weavers’ cooperative to other places in Bohol with the assistance of TLMPC as technology provider or trainers.

Potential Champions BAHRR and TLMPC are the potential value chain champions. TLMPC already produces loom woven products and can advance the development of the industry in adjacent towns; BAHRR can connect producers to tourism institutional buyers such as hotels, restaurants and souvenir shops. Recommendations

TLMPC to train new, younger loom weavers to continue the craft and increase production. The cooperative may tap the Technical Skills Education Development Authority (TESDA) for skills and other technical training requirements.

The SURGE Project may assist TLMPC in improving product development by establishing linkages with the Philippine Product Design and Development Center, which can provide information and training on updated market trends and consumer preferences.


d. Lowland Vegetable Products The Provincial Agriculture Office identified this value chain as one of its priority needs for the province, which has been corroborated by the Philippine Ports Authority/shipping data on the importation of vegetables primarily from Cagayan de Oro. Vegetables from the lowland like ampalaya, eggplant, squash, tomatoes, okra and highland vegetables like lettuces, broccoli, carrots, cabbage, sayote, bell peppers, among others are sourced from other provinces. Impacted by this value chain are Duero, Jagna, Sierra Bullones and Balilihan towns. The City Agriculture Office has also planned to introduce urban agriculture system to its barangays. Challenges

Ad hoc distribution. Tagbilaran currently has no regular bagsakan or trading center for vegetables. Rather, the local vegetable market is based on a temporary location.

No market information system. The City Agriculture Office has no capacity for data collection and analysis. As a result, it is difficult to obtain data on food sufficiency in Tagbilaran. A better information system can help determine Bohol’s vegetable production and link producers to markets within and outside the province.

Lack of credit facilities. Production credit for small growers is currently non-existent limited. Growers usually turn to traders-financiers for funding for their production requirements which are then tied up with disadvantageous product marketing arrangements.

Lack of support for vegetable industry. In general, the City Agriculture Office cited the lack of direction, policy support and prioritization for agriculture in Tagbilaran City in general and the vegetable sector in particular as one of the reasons behind many of the problems encountered by vegetable growers.

Land conversion. With the development of the city specifically its bustling tourism sector, there has been rapid conversion of prime agricultural lands to housing, tourism and other uses. This reduces the over-all area of productive farmlands including vegetable growing areas resulting to lower production and productivity.

Potential Champions A potential “platform” organization for this value chain is BFARCCO, which has around 24,000 farmer member-beneficiaries and operates PAIMC in Tagbilaran City. Among its functions are: (1) Lending, which aims to provide financial support to primaries (cooperatives) in need of capital infusion; and (2) Marketing services through the creation of market opportunities and linkages. BFARCCO aims to facilitate the marketing of 60 types of agricultural and processed products from 20 member cooperatives. It operates a display center to cater to the products of its member cooperatives and has links with BAHRR, DAR, DTI and other supporting agencies. Recommendations

The city government can review existing policies on land conversion and initiate dialogue with farmers and other stakeholders to formulate strategies that can minimize conversion


of productive agricultural lands to other uses. An ordinance is currently pending in the province promoting the utilization of vacant underutilized land for agricultural production.

The SURGE Project may consider providing technical advice to the City Agriculture Office in formulating a strategic plan for the local vegetable industry. The strategic plan includes identification of key farmer groups; existing and potential vegetable production areas; existing concerns in production, post-harvest, marketing; and corresponding action plans to address them.

The SURGE Project can identify a group of vegetable growers who have the capacity to supply local markets and introduce them to prospective buyers such as supermarkets, hotels and restaurants for possible supply linkages.

E. Cagayan de Oro City 1. City Profile Cagayan de Oro City is a major transport and logistics hub in Mindanao with long established trade and cultural linkages with Visayas and Mindanao. The city is a prime gateway to the rest of Mindanao and a prime transshipment hub for goods to Bukidnon, Lanao del Norte, Lanao del Sur, Agusan del Norte, Surigao del Norte and Camiguin. With an area of 578.5 km2, Cagayan de Oro has a total population of 675,950 based on the 2015 Census of Population and Housing. Major economic activities of the city include trade, commerce transshipment of goods, tourism, agriculture and fisheries. Though Cagayan de Oro City is a highly urbanized city, agriculture remains a major economic activity. Majority of its agricultural land, about 60 percent, is planted with crops while fisheries occupies 15 percent and declining, livestock and poultry industry takes up 12 percent and 13 percent respectively. The main agricultural areas of Cagayan de Oro City are located in three geographic locations. In the eastern side, the agricultural area covers the barangays of Indahag, Upper Gusa, Cugman/Palanan and Upper Puerto. The south side area covers the barangays of Dansolihon, Besigan, Tumpagon, Lumbia, Tignapoloan and Mambuaya. These areas are bordering on the province of Bukidnon, Lanao del Norte and Lanao del Sur. On the west side, the agricultural area includes the lowland barangays of Iponan, Igpit, San Simon, Baikingon, Pagatpat and Canitoan. These barangays are located along the Iponan river. Northern Mindanao provinces, in which Cagayan de Oro City belongs, are noted for high value crops such as broccoli, cabbage, cauliflower, lettuce, tomato, white potato. Even Metro Manila markets purchase these products for their high quality but low prices. Cagayan de Oro City ships its vegetables to as far as Zamboanga and Sulu on the west, Surigao del Norte and Surigao del Sur to the east, and to Cebu, Bohol, Iloilo, Negros islands and Manila. Although Cagayan de Oro City is not in itself a major agricultural producer, it is bounded by municipalities and provinces that are producers of agricultural commodities. These are Jasaan, Tagoloan, Claveria, and Malitbog on the east; Talakag and Baungon on the south; and Opol, Alubijid, Libertad, and Laguindingan on the west.


2. Priority Agricultural Commodity The agricultural product with good potential for spurring development in the city is vegetables. a. Vegetable Production Demand from external markets and local consumption are the end markets of the vegetable value chain. Based on key informant interviews conducted in the Cagayan de Oro - Agora Market, an estimated 250 to 400 MT of vegetables and root crops pass through the traders per week, excluding transshipments that go directly to Surigao and Zamboanga. Vegetables are transported via ship or plane to Cebu and Bohol daily, and to Iloilo and Manila twice a week. Northern Mindanao has developed its Vegetable Industry Strategic Framework and Roadmap for 2016-2020. Highlights of discussion from the workshop are:

The region is 90.96 percent sufficient in the top 20 vegetable categories with Bukidnon contributing 65.5 percent of supply;

Northern Mindanao consumes 50 percent of its vegetable production, and ships the rest of its production to other markets in Visayas and Luzon;

Surplus products of the region are: broccoli, cabbage, cauliflower, ginger, gourd, lettuce, Chinese pechay, tomato and white potato; and

Products which are in short-supply are: ampalaya (bitter gourd), asparagus, carrots, eggplants, garlic, okra, onion, native pechay, squash and string beans. These deficits, however, could be attributed to the flow of supplies to other regional markets (i.e. Cebu, Bohol) where they command higher prices.

In the case of Cagayan de Oro, 7,000-10,000 hectares of remaining agricultural area (three geographic clusters) can be developed according to crop sustainability and best value. Lowland areas (Eastern and Western Cagayan de Oro clusters) may be developed for tropical pinakbet type vegetables, while the Southern cluster can be developed for semi-temperate type or highland vegetables. Challenges

Untapped agricultural potential. Agricultural potential (productivity, employment, infrastructure) of the three agricultural clusters has not been maximized in spite of available suitable areas for production of various types of vegetables.

Facilities, equipment and infrastructure improvements. Transport and logistical improvements are needed particularly for the southwest cluster (Dansolihon-Tignapoloan area). Post-harvest and trading facilities for the Cagayan de Oro City trading center (Agora market) needs expansion and improvement.

Poor market information. The City Agriculture faces limitations on providing database and information on market trading for vegetables. Good market information, database, production efficiencies and quality will contribute to the competitiveness of Northern Mindanao vegetables with other regions.

Inconsistent quality of produce. While there are sufficient vegetable volumes to support the city’s requirements and for transshipment to other markets, the quality of produce is inconsistent. There are many incidents of vegetables being rejected at their destinations in Visayas due to poor quality and/or product spoilage. To address this problem, the


growers need to develop a quality assurance and product traceability system from the farm to the market.

Land conversion. Conversion of remaining agricultural lands to other uses is taking place in the city including some of its vegetable production areas.

Weak organization among value chain players. Growers, traders, service providers, financial institutions, and other players within the value chain are loosely organized.

Low production volume and productivity per unit area. Area yield across the region is around 1.18kg/m2 with an average annual income of Php7.17/m2.

Opportunities

Existing and potential markets. Markets for vegetables in the city and adjoining regions in Mindanao and Visayas are increasing. There is also a potential market for good quality, healthy and competitively-priced goods. The developed high end market in Cagayan de Oro City is an opportunity to promote a specialized distribution system for niche products. Based on the DTI assessment, Cagayan de Oro City has a significant number of high-end consumers for good quality vegetables. Clusters of distribution points can be established in the city for these clientele and link them to select production sites for lettuces, broccoli, cabbages, arugula, spices, leafy vegetables and other products. These niche markets will be similar to the weekend markets of Salcedo Village in Makati. Linking networks of Cagayan de Oro City producers and vegetable markets in Cebu, Bohol, Iloilo, Dumaguete and Bacolod creates connectivity with CDI cities and other outside markets. Northern Mindanao Vegetable Producers Association (NORMIN Veggies) can be explored as a champion and consolidator of producers. Encourage consolidation for feed grain supply with other CDI cities particularly Tagbilaran, Batangas, and Iloilo for the supply of cassava, corn, sorghum, and other feed grain ingredients. Marketing contracts with large institutional buyers (e.g. chain stores, fast foods, hotels and restaurant generators, hospitals) can be revived. NORMIN Veggies can also play a role in this intervention.

Available agricultural land. Lands for agricultural expansion are available within Cagayan de Oro City and its surrounding municipalities and provinces.

Cooperation for vegetable development. Strong partnership among participants, both from the private and government sectors, is crucial in the development of the chain.

Promotion of the Barangay Besigan area for Agri-tourism. Besigan has the available land, ideal climate and suitable natural endowments to create a Tagaytay-type of Agritourism.

Presence of port handling facilities in the city. Storage, post services, airport, and communication systems are in place.


Potential Champion The most logical champion for the vegetable value chain in Cagayan de Oro City is the NORMIN Veggies since the group members have the experience, people, and network of contacts. They also partner with the city government, province, region and institutional markets.

Recommendations

The City Agriculture Office should convene producers and other stakeholders to address production and quality issues including food safety. The SURGE Project may consider providing technical assistance to the city and vegetable growers in establishing a quality assurance program and a traceability system for vegetables especially those being shipped to other regional markets such as Visayas.

The city government, with assistance from DA, may consider expanding the vegetable and fish landing facilities located at the Bulua Terminal and Market Complex in the city to support the trading, marketing and transshipment requirements of growers.

The SURGE Project may assist vegetable grower groups in accessing more and higher-end niche markets such as upscale supermarkets and restaurants in the city and other cities in Mindanao.

The SURGE Project may also explore opportunities for inter-city trading with vegetable-importing CDI cities of Bohol, Iloilo and Zamboanga and Cagayan de Oro to take advantage of the latter’s excess vegetable production volumes.

The city government particularly the City Agriculture Office, City Planning and Development Office and City Tourism Office should initiate planning activities for the development of the southwest cluster (Dansolihon-Tignapoloan) to maximize the area’s agricultural production and ecotourism potentials.

F. Zamboanga City

1. City Profile Zamboanga City is one of the oldest cities in the Philippines dating back to the 13th-14th century. Historically a trading and barter port destination for the Malay-Chinese trade, it is located in the south western most tip of the island of Mindanao. The City of Zamboanga plays a vital link to three island provinces in the Basilan-Sulu-Tawi-Tawi (BASULTA) region. It has a population of 807,129 based on the 2010 Census of Population and Housing. The city covers an area of 148,338.49 hectares, one of the largest cities in terms of land area, second only to Davao City. Agriculture covers 26.92 percent of the city’s land area (41,381.52 hectares). Geographically, Zamboanga City has a very long coastline stretching from Vitali District bordering Zamboanga Sibugay up to Labuan bordering Zamboanga del Norte. Agriculture and fisheries sector comprise 41.14 percent of Zamboanga’s total labor employment of 17,834 in 2013. Major agricultural crops are coconuts, rice and corn, bananas, mangoes, cassava and rubber. The Vitali District shows the highest production in value and yields for agricultural crops, while the Ayala and Tumaga District show the lowest.


Based on data from the BAS for 2015 downwards, production has been decreasing in Zamboanga City. Rice production went down by 28.51 percent; corn by 54.16 percent; mangoes by 33.11 percent. This downward trend is attributed to the lack of irrigation (insufficient), weather pattern changes, reduction in agricultural lands (canvasses), and lack of post-harvest facilities. Zamboanga sources vegetables from Bukidnon and Cagayan de Oro; rice from Zamboanga Sibugay (Molave) and Lanao del Norte; 50 percent of eggs; hogs – 60 to 70 percent of hogs from nearby provinces and Cagayan de Oro City. The city, on the other hand, sells mangoes and bananas to Visayas and Manila. In the case of mangoes, Zamboanga City exports some volumes to Malaysia through the backdoor route using existing shipping links between Zamboanga City and Sandakan in Sabah State, Malaysia. 2. Priority Agricultural Commodity

There are two promising products identifed for the city – banana and cassava. a. Banana The most common cultivar in the Philippines with social and economic importance is the cardaba or saba cultivar (Musa Acuminata x balbisiana), which is the focus of this value chain study. The Philippines has a competitive advantage worldwide since it is the only producer of saba bananas. Cardaba or saba bananas are grown nationwide and the country produced 2,556,986.07 MT cultivated in 183,479.01 hectares. The national average yield in 2013 was 13.94 MT per hectares. The top yielding regions in the Philippines are SOCCSKARGEN (South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos City) at 36.77 MT/hectares; Davao region at 24.21 MT/hectares, and Northern Mindanao at 22.61 MT/hectares, with proper combination of good agricultural practices, yields as high as 50-80 MT/hectares have been achieved. Zamboanga City produced 66,051.24 MT of bananas with the Vitali and Monicahon Districts as largest contributors. Saba bananas are mostly exported as banana chips with the Philippine as top exporter of the commodity competing against Vietnam, Thailand and Malaysia. About 62 percent of supply (600,000-800,000 MT) are consumed in the domestic market with Cebu and Manila accounting for the largest share of the market. The choice of bananas as one of the potential value chain commodity for Zamboanga City is based on the following observations:

The cardaba banana is a source of cash flow and equivalent to short term cash source for thousands of farmers. It requires low input, low maintenance and can be harvested on a weekly basis. Bananas can be grown in marginal and small areas.

Bananas are easily marketed and have a steady market demand.

It is an alternative food source to supplement and even substitute for rice and corn as staple food. Bananas grown in the backyard is a food security mechanism.

The crop has versatile uses - as vegetable, animal feed, staple food, organic fertilizer, processed snack food, and other uses.

From 2009 to 2013, banana production in Zamboanga City has been growing positively, recording the second highest production volume in 2013 and the highest average yield of 22.5 MT/hectares. This increase is primarily attributed to productivity improvements since no significant increases in area planted was reported between 2009 and 2013.


Challenges

Low production yield. Total annual requirement of exporters/processors in Mindanao is estimated at 450,000 MT a year, but only an average of 350,000 MT is sourced out yearly.

Lack of value added activities for the product. In the Zamboanga peninsula, only one processor exists. Most of the produce as sold as raw bananas in local wet markets.

Rehabilitation of old banana strands. New varieties and clean planting materials to minimize incidence of pests and disease and improve production and yield should be introduced. Lack of organization for small holder growers. Success in fresh banana collective marketing and first fry operations depends on the capacity to consolidate large volumes of bananas and access to capital and markets. In the Zamboanga City area, there are no organized efforts among growers to undertake joint product consolidation and marketing. The relationship among growers is basically turf-driven and adversarial due to the competition for sources of supply.

Lack of support services. Learning among smallholders is generally via peer coaching or handed down information from other farmers family members. Government extension services by DA provide limited services due to resource constraints.

Inability to access to credit. Saba farmers are generally asset poor and have limited access to formal financing institutions. Informal sources such as advances from traders, family and friends are preferred as they are accessible, non-collateralized and do not require documentations. Financial literacy is generally low and financial management skills are virtually non-existent.

Opportunities

Improvement of production technology. Use of good agricultural practices, plant distancing and intercropping, increases per unit hectare yields. Tissue-cultured saba plants for disease-free plantlets could increase productivity significantly.

Market for Cardaba or saba banana. There is a growing market for raw banana chips, which is an opportunity since the Philippines has a monopoly in cardaba or saba production. Within the domestic market, the trading on saba bananas is also increasing, with the saba-based snack food subsector operated by street vendors, canteens and restaurants as the biggest markets.

Potential Champion Small holder growers, when organized, can champion the value chain development in terms of promotion of improved technology, processing and access to markets. The support of DA and other government agencies to growers on processing and marketing will be crucial.


Recommendations

The city government through its City Agriculture Office can conduct training on modern production technologies particularly Good Agricultural Practices for cardaba bananas. The training can be jointly organized with DA.

The City Agriculture Office can establish linkages with tissue-culture laboratories in other Mindanao regions (Misamis Oriental or Davao) to source out good-quality planting materials which can be made available to growers in their banana replanting or expansion activities.

The SURGE Project may assist banana growers’ groups in establishing supply linkages with banana chip processors for regular delivery of Cardaba banana. These supply linkages, once sustainable, can be transformed into a possible partnership in banana chip first-frying operations.

b. Cassava Cassava (Manihot esculenta Crantz) is one of the priority crops selected in the value chain study done in Zamboanga City. The DA, through the PRDP, conducted a value chain study of the commodity for Mindanao, which contributes 77 percent of plant production in the country. Production volume in 2013 was 2,361,527.54 MT, with ARMM and Northern Mindanao accounting for 90 percent of production in Mindanao. In the Zamboanga Peninsula, production increased from 30,416.06 MT in 2009 to 52,310.18 MT in 2013. Zamboanga del Sur had the highest production volume at 21,060.21 MT. Zamboanga City followed, producing 19,946.79 MT, 80 percent of which went into the production of panggi (staple food among Muslims) and other cassava-based food products. The establishment of the San Miguel Foods Inc’s. BMEG Feed Mill and the distribution of cassava graters to farmers producing panggi triggered the increase in production volume and opened other opportunities for value addition. Farm productivity in the region is still low and below national average yield, but the increasing yield trend is due to the introduction of higher yielding planting materials. Planting cassava is favored by farmers as it can be grown under marginal conditions. Cassava is both food and source of income security, grown as a cash crop and alternative staple to rice and corn. Production of the crop in the Zamboanga Peninsula and BASULTA region is important to food security as cassava is processed into the staple panggi. Cassava is increasingly used among feed manufacturers in the Philippines and has contributed reducing corn imports. Production in Mindanao is driven by various uses - feed, starch, food, industrial paste and binders. San Miguel Foods Incorporated operates a buying station in Zamboanga City and purchases cassava for feed production, encouraging industry growth. The Philippines imports cassava chips from Vietnam and Thailand for the feed industry. Average consumption of $4.25 million has been recorded over the last five years. After ARMM, Zamboanga Peninsula has the highest per capita consumption of cassava in the Philippines at 4.45 kg. Embedded services are also found, provided by traders, cooperative assemblers to farmers. Fee based services for use of equipment, post-harvest driers, chippers, are also provided by the private sector operators within the chain. Government programs, commercially sponsored radio


programs and farm government-sponsored (DA mostly) training and extension services are also availed on periodic basis. Challenges

Low productivity due to poor agricultural practices. Cassava can be planted as a sole crop (monoculture) or intercropped with other crops. Small growers usually intercrop with rice, corn, squash and other crops within a harvest period of 90-110 days. Commercial scale producers prefer monoculture system.

Land preparation is done by tractors (when available and affordable) and through traditional animal drawn plows. Good soil till, deep plowing and sandy soils are ideal for the plants growth and tuber development.

Spread of pests and diseases from re-use of planting materials. Continuous replanting on the same field increases pest and disease build-up and reduces soil fertility leading to low yields. Planting variety, planting distance and fertilizer use positively affects yields.

Poor processing facilities both for food grade and feed grade cassava products. Processing of panggi and dried cassava grates are small scale operations. Grating is done either manually or mechanically. Sun drying is the usual method of drying. The grates, tuber quality, post-harvest handling, grating and drying dictate the overall product quality.

Opportunities

Increasing demand for cassava chips, grates and pellets from the feed industry. Current supply of cassava chips is insufficient to meet domestic market requirements. Ginebra San Miguel’s distillery in Negros Occidental need 4 million kg per month of dried cassava chips, while Mega Plywood in Zamboanga City has a regular requirement of 400 MT of cassava chips for plywood glue.

Availability of other cassava varieties. New varieties with higher yields and disease-free are available in other Mindanao regions such as Bukidnon and South Cotabato. These new varieties can be introduced in selected areas to demonstrate its higher-yielding performance vis-à-vis existing cultivars.

Growing market for food grade cassava grates, starch and flour. The Philippines spends an average of $27.16 million per year for cassava starch imports. The food, textile, plywood and adhesive industries are also main users of starch. Two groups in Zamboanga are traditional processors of panggi, cassava pressed grates for Muslim communities from Zamboanga Peninsula and island provinces.

Potential Champion For this value chain, the potential champion is the Lubigan Cassava Growers Association (LCGA), an organization registered with the Department of Labor and Employment (DOLE), whose membership include 51 growers covering 200 hectares of area planted to cassava. It produces the traditional staple, panggi, and has existing market linkages with distributors in Tawi-Tawi, Jolo, Basilan and within the Zamboanga Peninsula. The association is a recipient of DTI and DOLE’s Shared Service Facility (i.e. chopper, presser, shredder).


LCGA is looking at the possibility of expanding the supply of cassava chips for the feeds industry since San Miguel Corporation has a cassava buying station near the barangay. Lubigan has a potential expansion area of 1,500 hectares suitable for cassava production. LCGA can also be linked with the feed milling industry of Batangas City and Tagbilaran City. Recommendations

The SURGE Project may review the feasibility of inter-city cassava trading between importing CDI cities such as Batangas and Iloilo and surplus producing cities such as Zamboanga and Cagayan de Oro.

The SURGE Project may link existing cassava growers to existing buyers or processors such as San Miguel Foods, Inc. for supply of fresh tubers or cassava chips.

The city government, in partnership with the DA, may consider introduction of higher- yielding cassava varieties to improve yield and productivity. Aside from new varieties, the city government shall also organize training on Good Agricultural Practices for cassava to enhance production and improve quality.

The city government can tap existing projects of DOST on new food processing technologies and practices to promote value-added processing of cassava. A possible market opportunity for processed cassava is expanding production of food grade panggi or cassava grates to supply growing demand in Muslim communities in the nearby island provinces of Sulu, Basilan and Tawi-Tawi.


V. High Impact Projects and Programs The study has identified various promising agricultural products in each of the CDI partner cities. Including recommendations for further maximizing production. Based on the study, the following are proposed activities that the SURGE Project can support. Marketing and Processing of Cassava as Animal Feeds Ingredients in the cities of Batangas, Cagayan de Oro, and Zamboanga The SURGE Project will facilitate market linkages between cassava producers in Cagayan de Oro City and Zamboanga City, and the Sorosoro Ibaba Development Cooperative in Batangas City, which consumes 180 metric tons of feed grains per day to produce 900 bags of various feed materials. Through consultations and planning sessions, an inter-regional feed ingredients supply business can be developed between producers and buyers in relevant cities to strength animal feed supply chain linkages. Cassava market linkage development is a priority intervention in Zamboanga City. The City Agriculturist Office was tasked to oversee the value chain activities. The SURGE Project, on the other hand, will ensure that staff capacity development on value chain assessment and development is enhanced. A training module can be developed that will include topics on climate-smart agriculture to ensure that value chain development strategies are inclusive, resilient and adaptive to climate change. The training will use cassava as a business case where strategies and approaches on climate-smart and resilient value chain development will be practiced. Vegetable Traceability System in Cagayan de Oro City Huge volume of vegetables from Cagayan de Oro City is often rejected at destination, which is often at the Port of Cebu. To minimize rejection, it is necessary to track the movement of vegetables from one point of the supply chain to another to determine where the problem lies and to minimize rejection at the port. A traceability system is important as it allows the implementation of corrective actions when problems arise, e.g. potential food safety problem. It can also help in isolating contaminated or low quality vegetables before they are rejected at its destination. The traceability system will also help educate producers to adopt good agricultural practices that have less impact on the environment. The traceability system for coconuts developed by the Mindanao University of Science and Technology can be adopted. Marketing Center of the Bohol Federation of Agrarian Reform Communities Cooperative The project may assist the BFARCCO to develop a business plan to improve its services and increase its income. The cooperative can also be assisted in continuing its efforts in linking producer groups that are located in the surrounding municipalities to markets. Vegetable producers will be linked with institutional buyers through the marketing center. The business plan, on the other hand, ensures a sustainable and profitable business model. Puerto Princesa Agri-Pinoy Trading Center The SURGE Project provides assistance in developing the business and operations plan of the Puerto Princesa’s Agri-Pinoy Trading Center. The establishment of a trading center serves as an alternative marketing system and a business model wherein small farmers and fisherfolk can sell their products directly at rationalized prices. The city government and the private sector farmers and fisherfolk will oversee the center. It is designed to eliminate or control unfair trading system or regulations, hence, increasing the income of small-holder farmers. The city government, the


Palawan Provincial Government, and the DA have committed more than Php50 million for the construction of the trading center. A Memorandum of Agreement for this is being drafted. The SURGE Project will assist in the establishment of the Project Management Office for the trading center, the development of business plan and its internal systems, and processes to strengthen supply chain linkages. The Project Management office will operate and manage the center. An Environmental Screening Report to ensure that the activity will have minimal environmental impact will be produced. The operations plan that will be developed for the trading center will include systems for waste disposal and hygiene and sanitary practices on goods handling. Other Projects The SURGE Project, in collaboration with the stakeholders in CDI partner cities, is developing other high impact projects and programs on promising value chains. Strengthening cities as hubs for the consolidation of commodities from peri-urban areas is one of the primary focus. The project has also been facilitating market encounters between producers and institutional buyers in order to formalize supply or marketing agreements.


Annexes Annex 1. Value Chain Assessment Questionnaire Market Access

1. What do you see as your main needs/opportunities in accessing markets? 2. To whom do you sell your product or service: large firms, small firms, wholesalers,

exporters, retailers, direct to customers, etc.? What percentage goes to each? 3. How do you promote and market your product/services? 4. How strong is the market for your products/services right now? Next year? 5. Are some markets (customer groups) better than others in terms of sales and

revenue growth? Which ones? 6. Do you ever collaborate with other firms on promotion and/or marketing? 7. Do you have a brochure for customers that describe your firm’s capabilities?

Technology/Product Development

1. What are your major needs/opportunities in product design and manufacturing (or service delivery)?

2. What are your products and/or services in order of contribution to gross revenue? 3. What have you done recently to improve your products or services? 4. Please describe your important pieces of production machinery (type, age, make,

features). 5. What kind of equipment of machinery could improve your business? 6. Do some of your workers need additional training? In what field/skills?

Management/Organization

1. In the area of organization and management, what are your major needs/opportunities? 2. Who does most of the work in the areas of: general management/supervision, product

design, purchasing, production, shipping, accounting, marketing, repairs, etc. (owner, employees, or external)?

3. What processes do you subcontract? 4. Do you sometimes collaborate with other firms to produce and deliver customer orders? 5. Which aspects of your business do you intend to change in the next 2 years (machinery,

equipment, computers, new products, marketing strategy, quality control, management system, worker skills, etc.)?

6. What management skills would you like to strengthen in order to grow your business? Input Supply

1. What are your major needs/opportunities in the areas of input cost, quality, and availability?

2. Who are your most important suppliers and what do you buy from each? 3. Are there problems in obtaining some important inputs? Explain. 4. Have you ever purchased inputs jointly with other business? Explain.

Finance

1. Where do you go when you need money for your business? 2. Do you get credits from input suppliers? What are the terms? 3. Do you get production financing from your buyers? What are the terms? 4. Do you have need for additional financing at the moment? If so, what would it be

used for? 5. What sources (formal or informal) have you approached for loans, and what have

been the key problems, if any?


Business Membership Organization

1. Is your industry /trade sector represented by national or local business associations? If so, please name them.

2. Are you a member? 3. What are the primary functions and benefits of these associations? 4. What additional services should they provide?

Policies

1. What government policies/regulations benefit your business? 2. What government policies/regulations are obstacles to growing your business?

Infrastructure

1. What are the most important infrastructure constraints affecting your business’ growth and profitability (road/transport conditions, telephone service, electric supply, crime/corruption, storage, etc.)?

2. What is your industry doing about these problems? Others

1. What do you think are the strengths of your industry locally and/or internationally? 2. What are the main weaknesses of your industry? 3. What do you think is the greatest challenge facing your industry today? 4. Can you name some business owners in your industry who are leaders-for example,

in terms of technology, product design, quality, or marketing?


Annex 2. Comprehensive List of Key Informants List of Key informants in Batangas City

Name Position and Organization

Pedrito R. Kalaw Chairperson, Southern Tagalog Feed Millers Association, Inc. United Batangas Swine Raisers Association

Lucilo P. Plata Senior Manager FM, SIDC

Dr. Matt Jarmilla DVM City Veterinarian, OCVAS

Niño Jesus Bagui DVM Head Livestock Manager, SIDC

Enrico Libuit "Paiwi" Management Officer, SIDC

Nestor and Sabina Macaraeg

Hog and Poultry raisers

Marissa C. Argente OIC, DTI-Batangas

Flor Andal City Agriculture Office, OCVAS/ Coops Division

Felimon Permejo Chairperson, BOD, Sorosoro Multipurpose and Allied Services Cooperative

Victore Malibiran President, Batangas City Vegetable Growers Association

April Rivera Local Economic and Investment Promotions Officer, LEIPO, Batangas City

List of Key informants in Puerto Princesa City


Mrs. Rosenda Fortunado OIC Director, DTI

Dr. Romeo Cabungcal Assistant Provincial Agriculturist

Ms. Librada Fuertes OIC DA-Palawan Research and Extension Services

Mr. Dexter Acontilado President, Puerto Princesa Agricultural Producers and Marketing Association

Mr. Bart and Mrs. Paz Duff Proprietors, Island Sweets

Mylene Deligero DTI Trade Specialist

Frauline Castillo Provincial Agriculture Office

Engr. Haide Mendoza Provincial Agriculture Office

Rogelio Madarcos Chief for Program Beneficiaries Development, DAR

Ricardo Francisco DAR Provincial Agrarian Reform Officer I, DAR

Danny Balderas Technician Weevil Detection Machine City Agriculture Office, Irawan PPC

Romeo Apolinar Technician Weevil Detection Machine City Agriculture Office, Irawan PPC

Mellisa Macaraeg City Agriculturist

List of Key informants in Iloilo City


Mrs. Lucia L. Lastimosa DEAN, WVSU College of Agriculture

Ms. Sheila Oberio Director, DOST Iloilo Provincial Office

Raul Anlocotan NEDA 6, Assistant Regional Director

Velma Jane Lao LEIPO, PPDO, Iloilo City

Ermelinda Pollentes DTI Iloilo Provincial Director

Rebecca Rascon OIC, DTI Region VI

Engr. Diosdado Cadena DTI Provincial Director

Ildefonso Toledo Department Head, Provincial Agriculture Office

Maria Lea Victoria Lara Executive Director, Iloilo Business Club

Filoteo Palmares III David Public Relations and Advisory



Johnny Que Proprietor, Orchard Valley, Inc.

Nereo Lujan Chief, Public Information and Community Affairs Office, Iloilo Province

Vivian Azucena-Topor Director, Graduate Program Office UP Visayas

Raul Cordova President, Vegetable Traders Association of Iloilo

Yonder Yondre Agricultural Center Chief IV, Guimaras National Crop Research Development and Product Support Center

Ariel Castaneda Department Head, LEEO

Catalina Magdalena Municipal Agriculture Officer, DA Calinog

Ma. Daisy Navarette President, Chamber of Iloilo Rural Banks, Inc.

Reynaldo Dusaran Dean, Central Philippine University

Dawn Jomandre President, Panay Organic Producers Association

Ma Lea Lara Business Chamber of Iloilo

Ian Anthony Gonzales Vegetable Trader, Member

Romulo Pangantihon OIC, City Agriculturist

Teresita Jorda City Agriculture Officer

Ma. Teresa Solis DA, Regional Field Office 6

Anabel Ganzon Agrarian Reform Program Officer II, DAR

Sally Ortega OIC, Chief DARPO

Romy Villanueva CSO Representative

Grace Sangcada Senior CDF, CDA

Homer Hubag MAO, Pavia

Reynaldo Tan UP Visayas, Business Management

Wilfredo Sy Jr. USA, Department of Architecture

Teodoro Robles CPU Research Department

List of Key informants in Tagbilaran City


Alex V. Relova DAR

Brigido P. Acero DAR

Doris Isabel J. Racho DAR

Richelle Roloma OPV

Dra. Stella Marie Lapis CAD

Blair Panong DTI

Eduardo Dumagan BFARCCO

Annie Arcay BAHRR

Aida M. Novero CAVO

Larry M. Pmugas OPA

Mineranda Alcantar CAO

Reyna C. Deloso BCCI

Leo Bongalos BFAR

Dra. Limbaga CAO

Rolando Ramirez BFMPC

Bienvenido A. Ceroy BFMPC

Alvin Mante Roica Bohol RPC

Guillerma Abayabay PCC

Jessie Cemegala Marcela frontier

Cliff Ryan Chua Marcela Feed mill Manager

Nerm Bonghanoy Marcela Feed mill Purchaser

Florinda B. Catipay Feed mill

Lucy Patindol Feed mill Admin Officer

Edgar Bano Rice Mill Mngr. Marcela Farms



Manlon L. Orfano Plant Mngr. Marcelas Farm dressing plant

Grace Frias Assistant Quality Assurance, Bohol Agro Marine Development Corporation, Alturas Group of Companies

Servando Madrid Acas Barangay Captain, Mayana

Elizabeth Tacolod Vegetable Consolidator, Bangwalog and Taytay Barangay

Kagawad Philipp Besas Chairperson, Agriculture Sector Tacloban City

Ma. Trina Sumayang Mngr. Tubigon Loom Weavers MPC

Mayor

Manager of Bohol Agrimony

Mayette Gasatan BAHRR

List of Key informants in Cagayan de Oro City


Eliza Pabillore DTI Provincial Director

Constancio Maghanoy, Jr. OIC Provincial Agriculture Office

Faisar Mambuay DAR Regional Director

Engr. Dodoy Constancio DAR Provincial Program Officer

Roberto Ansaldo Vice President, Oro Chamber

Jeffrey Ang President, Oro Chamber

Robertino Pizarro Director and President, A Brown Company, Inc.

Manuel Boniao Chairman, Bali Oil Palm Produce Cooperation

Sustines Magallanes Farm Manager, XSF Institute of Land Governance

Lourdes Ellen Kionisala BOI Supervising Investments Specialist

Queritess Queja NORMIN Veggies Marketing Cooperative Marketing Officer

Chiquita Capili EVP, COO, CEPALCO Light & Power Co.

Cesar Cabualan EVP Finance, CEPALCO Light & Power Co.

Consuelo Tion President, CEPALCO Light & Power Co.

Leonardo Gumalal EVP Engineering, CEPALCO Light & Power Co.

Marilyn Azarcon Chavez EVR HR, CEPALCO Light & Power Co.

Marilou Clarete Community Development Program, DENR 10

Gemma Celino PFMS Staff, DENR 10

Lida Bagonoc Assistant Chief, Conservation & Development Department, DENR 10

Cathy Escuzar Community-based Forest Management in Charge, DENR 10

Leslie Neduia CBFM Staff

Jerome Soldevilla HRD Officer, STEAG Coal Power Plant

Hyessa Sororgon VP Marketing, Phividec Industrial Estate

Atty. Ruben Resma President, PHIVIDEC Industrial Estate

Dr. Hector San Juan City Agriculturist

Celso Minister Brgy. Council of Besigan

Gabriel Cubaynon Brgy. Council of Besigan

Martin Suyawan Brgy. Council of Besigan

Crispin Tiway Brgy. Council of Besigan

Peter Abutan Brgy. Council of Besigan

Welfredo Minister Brgy. Council of Besigan

Marlon Minister Brgy. Council of Besigan

Ronnie Minister Brgy. Council of Besigan

Romel Gausat Brgy. Council of Besigan

Brigido Platitas Brgy. Council of Besigan

Arbolo Arsilias Brgy. Council of BrgBesigan

Jun Mart Minister Brgy. Capt., Besigan

Heracleo Luzon Brgy. Council of Besigan



Bryan Noble Trustee, Oro Chamber

Jose Pepe Romo Agriculturist, DAR 10

Cristine Paclar Vendor

Robert Enerio President, NMFDC

Weliedito Molon Agriculturist, MAG MPC BUU

Rowedavin Esmaya Field Officer, XSF ILG

Jordan Ian Apar M. Dire, CPI-NUMC

Eileen San Juan Director, COHARA

Lloyd Castillo Sr. EME Officer, COHARA

Cathy Esuflar Devt Mgt Officer, DENR 10

Rodulfo Yana OIC-CEED

Cleofe Ampatin Senior Agriculturist, DA 10

Mary Ann Cape POC-Mis Or, DA RFP 10

Lourdes Rudinas Project Evaluation Officer, DA RFP 10

List of Key informants in Zamboanga City


Eric Harina Independent swine raiser

Nilo Baretto Livestock Producer

Julie Rubio Meat Laboratory Technician; DA

Ann Madrazo Genetics; DA

Danny Uy Slaughterhouse Operator

Jesus Quimquim New Jersey Farm/Meat Processor

Nonito Bernardo Dairy Cattle Farmer/Mango farmer

Carlos Einjan Santos Lubigan Cassava Growers Association (Panggi processors)

Richard Manlicon Agri-Technologist, OCA-AFO 5

Hakim Jala Lubigan Cassava Growers Association (Panggi processors)

Antonio Vidal Lacaser Brgy. Captain, Limpapa

Arturo Chavez La Paz Brgy. Council

Garde Cerna La Paz Brgy. Council

Jaydric Yap SOFIL President, Fishing and Canning Operator

Marina Rubio DA/ City Agriculture Officer

Daisy Bacero-Hapay Provincial Coordinator, BeSecure Project

Ronnel Castelo Plant Manager, Mega Global Fishing/Sardine Processor

Anthony Jose Executive Director, KRDFI

Mila Grace Santos Enterprise Services Officer, Zamboanga Ecozone

Engr. Musa Sali Zamboanga Ecozone

Irmachelle Arnoco Agriculturist, LGU OCVET

Francisca Alviar Dulian, Bungiao Farmer

Arben Magdugo Agriculturist II, OCA-AFO 4

Godofredo Oliveria Agriculturist II, City Agriculture Office

Jhouna Padawan OCA

Erika Mae Astuto OCA

Rasheed Adjul OCA

Alberto Valerso ISRDFI

Merida Garcia OCA

Carmencita Sanchez OCA

Robert Alfaro OCA Agri Business Division

Eugene Pacio Construction Division Chief, Zamboanga Ecozone

Louie Nova Owner, Agri-Ventures of Consultancy Services


Annex 3. List of Documents Reviewed

City Documents

Batangas Comprehensive land use plan for Batangas City (2009-2018)

Agricultural Profile 2014 (City Veterinarians Office)

Batangas City Profile (Office of the City Mayor)

Sorosoro Ibaba Development Cooperative Brochure (SIDCI, 2014)

Bureau of Agricultural Statistics – Batangas (BAS; 201)

Puerto Princesa Puerto Princesa City Investment Profile

Puerto Princesa Facts and Figures; SURGE/USAID Brochure

Comprehensive Land Use Plan of Puerto Princesa City (CY 2013)

Value Chain Analysis Study – Roasted Cashew Nutes, Philippine Rural Development Project (PRDP) Publication

Value Chain Analysis Study – Bananas; Philippine Rural Development Project (PRDP) Publication

Value Chain Analysis Study – Mangoes; Philippines Rural Development Project (PRDP) Publication

Cashew Production, Regional Agriculture & Fisheries Information Section and High Value Crops Development Program; DA RFO 6

Iloilo Iloilo City Government Profile (Socio-economic) – Iloilo City Publication (2014)

Poultry Industry Situationer, Western Visayas – Bureau of Agricultural Statistics Publication (2012)

Market Demand on Agricultural Products in the Province of Iloilo – Iloilo Provincial Government/ PPDO Study (2015)

Iloilo Agriculture & Fisheries Profile – Iloilo Provincial Government Profile

Strategic Plans & Programs – Provincial Agriculture Office, Iloilo (2016)

Documentation Report on Forum on Value Chain Integration for the Agriculture and Fisheries Sector – NEDA 6 Documentation Report

Raising Organic Swine and Poultry for Aklan, Antique and Iloilo – DA, Agricultural Training Institute Region 6 (2015)

Comprehensive Land Use Plan for Iloilo City: Volume 1 (2011-2020) – Iloilo City Publication

Tagbilaran Bohol Agriculture Master Plan CY 2006-2026. (Vol. 1, 2 Provincial DA, PAHRDF, OIDCI)

Bohol Seaweed Industry: Value Chain Industry Analysis and Development Plan. (Au said, SDS Asia)

Bohol Hog Industry Value Chain and Development Plan (AusAid , SDC Asia)

Generic Marketing Plan for Microenterprises (AuSAid 2011, Australian Business Volunteers)

Virgin Coconut Oil Value Chain Analysis and Marketing Plan

Feasibility Study on Multiline Fruit Processing Plant in the Province of Bohol (Holy name University Research Center, 2003)

Working paper for Bohol Medium Term Agricultural Industrialization Development Master Plan (Provincial DA, 2002-2007)

Farm Machineries and Equipment Support Services for Corn Block farming (DAR ARCESS Program, FREEDOM, INC.)

Needs Assessment Report-Farm Machineries and Equipment Support Services for Cassava Block Farming Production in Bohol (DAR ARCESS, 2015)

Needs and Design Assessment: Organic Uri Kenan pay Prod in, Processing and Marketing (DAR ARCESS, 2013)

Needs and Design Assessment: Cocoons Cluster Contract Processing, Marketing and Financing (DAR ARCESS 2013)

DTI Value Chain Studies Conducted – Coconut, Rice, Mango, Banana, Seaweeds, Tourism, Raffia, Calamay


City Documents

Business Plan- Bohol Dairy Carabao Processing and marketing enterprise (PRDP)

Business Plan- Agrarian Information Marketing Center (PRDP/Prov. DA)

Needs and Design Assessment for Farm Machineries and Equipment for Rice-Fish-Duck Farming (PRDP)

LGU- Tagbilaran City Road Map (CY 2011-2016)

LGU- Tagbilaran Comprehensive Land Use Plan

Technical Writing of the 10 year iconological Solid Waste management Plan (ESWMP) and integrated Coastal management Plan (ICMP) for Tagbilaran City (Project Proposal Stage, CPDO/CAO)

Cagayan de Oro Northern Mindanao Vegetable Industry Strategic Framework and Roadmap (2016-2020); DA/NORMIN Veggies Publication (2015)

Northern Mindanao High Value Crops Development Program Strategic Roadmap (2016-2020); DA/NORMIN Veggies Publication (2016)

Cagayan de Oro City Facts & Figures; SURGE/USAID Primer

Comprehensive Land Use Plan of Cagayan de Oro City; Cagayan de Oro City Publication (2013)

List of Agrarian Reform Cooperatives; DAR-10 Publication (2015)

Inclusive Business in the Philippines; INVEST Philippines, BOI Publication (2015)

Zamboanga Comprehensive Land Use Plan – Zamboanga City – Palafox Zamboanga City Publication (2015)

Value Chain for Carabao Mango (Processed) – PRDP Publication (2015)

Facts & Figures, Zamboanga City – SURGE/USAID Publication

UD Government Assisted Active & Recently Completed Projects in Mindanao (2015) – USAID Publication

Value Chain Analysis and Competitiveness – PRDP Publication (2015) Strategy: Cassava (Mindanao)