Department of Trade and Industry – Comprehensive Agrarian Reform Program (DTI-CARP), in partnership with the Department of Agrarian Reform (DAR) – Agusan del Norte, conducted a workshop on business planning for coconut processing with Libas Farmers Multi-Purpose Cooperative (LFMPC) last 29 June 2021 at LFMPC Processing Center, Libas.
The business planning workshop for LFMPC is one of the interventions identified by DAR, DTI and Department of Science and Technology (DOST) during their synchronization meeting last February 2021 that is in line with the goals of the Village Level Farm-Focused Enterprise Development (VLFED) project of DAR for 2021.
A processing building that is now an Food and Drug Administration-License to Operate (FDA-LTO) certified was provided by the DAR and the processing facilities were provided by DTI under its Shared Service Facilities (SSF) program, and an upcoming project worth ₱17 million from the Philippine Coconut Authority.
The cooperative can now produce coco juice, coco vinegar and charcoal in addition to their first product, the Virgin Coconut Oil (VCO). Its members also found out that their waste materials such as the curd and dry pulp still have market value.
Having a current marketing agreement with Amparitas Food Products which demands for 200 liters of VCO a week and with their new products, the goal of the training-workshop is to assist the cooperative in strategizing its marketing and production plans. More than 200,000 worth of working capital each month is needed to be able to produce the volume needed for the VCO. Based on the assessment of DTI-CARP and DAR personnel, the cooperative can only raise a maximum amount of ₱60,000 from their available funds and other resources.
The participants were able to calculate the 25% return on investment (ROI) if the cooperative will be able to raise the ₱200,000 capital needed. With the lack of capital, LFMPC directors agreed to access financing or loan from available financing institutions that offer low to no interest rates.
DTI-CARP coordinator Valentina Rose Orbita shared to micro, small and medium enterprises (MSMEs) the financing program of DTI managed by Small Business (SB) Corporation, the Pondo sa Pagbabago at Pag-asenso (P3) and Bayanihan COVID-19 Assistance to Restart Enterprises (CARES) that requires no collateral, no interest and with a grace period on the re-payment. ♦
Date of Release: 14 July 2021