This progress report summarizes a 2-year project funded by the Department of Agriculture to produce and commercialize coconut sap sugar in the municipality of Quezon, Philippines. The project trained farmers in collecting coconut sap and processing it into sugar. It established production facilities and sold the coconut sap sugar locally. The project increased farmers' incomes compared to just producing copra. It created jobs and sustained the coconut industry in
1. PROGRESS REPORT
of DA-BAR-FUNDED PROJECTS
under the
NATIONAL TECHNOLOGY COMMERCIALIZATION
PROGRAM
A Study in the Production and Commercialization
of Coconut Sap Sugar
1
Department of Agriculture
BUREAU OF AGRICULTURAL RESEARCH
2. PROPONENT : BENJAMIN O. VILLAFLOR JR., Municipal Agriculturist
: EDUARDO R. LALAS, DBA, Senior Agriculturist, DA-QAES
: EMILIO M. MEJIA JR., Researcher, DA-QAES
TARGET PROJECT COST: Php1,000,000.00
TOTAL AMOUNT SPENT: Php814,000.00
TOTAL AMOUNT RELEASED: Php1,000,000.00
BALANCE: Php186,000.00
DURATION NUMBER OF YEARS: Two (2) years
DATE STARTED: December, 2012
DATE ENDED: December, 2014
2
3. 3
PROJECT OVERVIEW
The Municipality of Quezon is an Agricultural
land. The major crop is coconut which covers an
estimated 70% of the 7, 122.20 hectares of
Municipality’s total area. Copra is usually the
finish product sold to the copra buyers who
dictate the price of copra to the coconut farmers
who in turn nothing to do with the low price
given to them.
For this reason, the coconut farmers are thinking
of another product that could be produced from
coconut which is marketable, with high demand
and of higher market value.
4. 4
General Objectives:
To increase coconut farmer’s income, create
employment and sustain the coconut industry
as a major source of income.
5. 5
Specific Objectives:
Phase 1
a) Introduce the coconut sap sugar production as
a means of income generation project to an initial
fifteen(15) coconut plantation owners, tenants
and farm workers.
b) To identify adjacent coconut plantation sites
planted with young bearing of productive coconut
trees with easy access to processing plant and
transport facilities.
c) To conduct trainings/ technology transfer on
coconut sap sugar production.
6. 6
d) To establish one (1) area for techno-demo this
municipality.
e) To produce coco sugar from the coconut trees which is
of health benefit specifically for diabetic persons, in
demand in the market and of high market value.
f) To conduct regular monitoring and periodic evaluation
to ensure the prosperity of the project.
g) To keep records of all documentations during the
duration of the project.
h) To submit samples of the product at BFAD for
laboratory test and registration.
i) To establish market outlets of coco sugar.
7. 7
Phase 2
a) Conduct production and commercialization of coconut
sap sugar.
a.1 Expand coconut sap sugar production by 500 coconut
trees covering 2.5 hectares of coconut plantation.
a.2 Conduct trainings on coconut sap sugar production to
forty(40) coconut land owners, tenants and farm workers.
a.3 Establish one (1) production area outside the
previously identified project site.
a.4 To conduct close monitoring to ensure the prosperity
of the project
a.5 To expand coco sugar production and market
linkaging/strenghening.
8. 8
List of
Activities
Accomplished Proposed
Budget
Actual
Release
Difference
1. Designation of
technical working
groups (TWG)
Designated three
TWG to manage the
project
Php. 360,
000.00
Php 315,
000.00
Php45,000.00
2.Procurement of
office and
agricultural
supplies
Procured 1,250
bamboos and 450
kg. tiewires
Php 250,
000.00
Php 249,
360.00
Php640.00
3.Installation,
collection and
processing of
coconut sap
sugar:
Salary of
hired workers
Hired 3
“mangangarit”, 3
cooks, and 1 utility
worker
Php 200,
000.00
Php 198,
925.00
Php1,075.00
4. Travelling
Expenses
Attendance to
meetings/linkaging
with Government
Agencies and
Business sectors
Php 30, 000 Php 6, 381.00 Php23,619.00
TOTAL: Php 840, Php 769, Php70,334
PHYSICAL and FINANCIAL ACCOMPLISHMENTS
9. Project Components
and Activities per
Approved WP
Activities
Undertaken
Approved
Budget
Actual
Expenses
Variance
1. Procurement of Supplies/
Materials
Purchased materials
for production
facilities
250, 000.00 249, 360.00 640.00
2. Production of Coconut Sap
Sugar
2.1. Salaries for:
Installation of Facilities,
Collection of Coconut Sap
Processing of Coconut
Sap Sugar
>Installed 1,250
bamboos in
Production Site
>Collected 0.75 liter
of Coconut Sap/day
>produced 21 kg. of
coconut sap
sugar/day
200,000.00 198, 925.00 1, 075. 00
3. Designation of TWG
Honorarium
4. Traveling Expenses
Transportation Expenses
Designated 3
personnel to
manage the project
Attendance to
meetings
360, 000.00
30,000.00
315, 000.00
6,381.00
45, 000.00
23,619.00
TOTAL: 840, 000.00 769, 666.00 70,334.00
9
HIGHLIGHTS OF ACCOMPLISHMENTS
10. Title ID: _______ Proponent: _________ Cost: ______ Duration: _________
10
MFO, Components, Activities
Physical Target and
Accomp.
Financial Allocation
(M PhP)
Total
Targets
First
Year
Second
Year
Total
Budget
First
Year
Second
Year
Designation of Technical
Working Group (TWG)
Honoraria of TWG
24
mos.
10
mos.
11
mos.
360,000.00 150,000.00 165,000.00
Component 1: 3 TWG
1 Team Leader
1 Senior Agriculturist
1 Researcher
24
24
24
10
10
10
11
11
11
120,000.00
120,000.00
120,000.00
50,000.00
50,000.00
50,000.00
55,000.00
55,000.00
55,000.00
11. Title ID: _______ Proponent: _________ Cost: ______ Duration: _________
11
MFO, Components, Activities
Physical Target and
Accomp.
Financial Allocation
(M PhP)
Total
Targets
First
Year
Second
Year
Total
Budget
First
Year
Second
Year
Procurement of Office
and Agricultural
Supplies
Materials/Supplies 250,000.00
Bamboos
Tie Wire
1,250 pcs.
450 kg
1000 pcs
.
400 kg
250 pcs.
50 kg
200,000.00 199, 360.00 50, 000.00
12. Title ID: _______ Proponent: _________ Cost: ______ Duration: _________
12
MFO, Components, Activities
Physical Target and
Accomp.
Financial Allocation
(M PhP)
Total
Targets
First
Year
Second
Year
Total
Budget
First
Year
Second
Year
Installation, Collection
and Processing of
Coconut Sap Sugar
Labor Cost
Installation of Bamboos
Coconut Sap Collection
Coconut Sap Sugar
Processing
3 pax,
Mangangaret
3 pax, cook
1 pax, Utilty
10 pax 10 pax 200,000.00 99,925.00 99,000.00
13. Title ID: _______ Proponent: _________ Cost: ______ Duration: _________
13
MFO, Components, Activities
Physical Target and
Accomp.
Financial Allocation
(M PhP)
Total
Targets
First
Year
Second
Year
Total
Budget
First
Year
Second
Year
Travelling Expenses
Attendance to Meetings /
Linkaging with
Government Agencies
and Private Sectors
Transportation expenses
of TWG 8 4 4 30, 000.00 6, 381.00 0.00
14. 14
PROJECT MILESTONES
Project Milestones Brief Description
1. December, 2012 – Preparation of
documents for the procurement of
materials of production facilities
*Release of DA-BAR project fund assistance worth 500,000.00, procurement of
supplies and materials
2. January – March, 2013 – Project
Implementation
3. April, 2013 –April, 2014
*Project implementation
>hiring of manpower
>installation of production facilities
>Sap collection
>Processing of coco sap into sugar, produced 150 kilos coconut sap sugar
*Production of coconut sap sugar
>product quality improvement and development
>product promotion and enhancement, attendance to trade fair /marketing
>production of coco sap sugar is 300 kilos-400 kilos 26 days a month
4. May-June, 2014 *Continuation of project implementation
5. July, 2014 to December, 2014 >Release of fund amounting to 500,000.00 from DA-BAR
>Produce 300 kg. – 546 kg. coconut sugar per month
>good quality of coco sugar with improved packaging materials
>direct selling of product
> Increase in income
*Rehab/reinstallation of production facilities due to typhoon Glenda damage
>Installation of 500 pcs. bamboos amounting to 75,000.00
>Collection and processing of coconut sap to coco sugar
>Production decrease up to 50% due to the adverse effect of the calamity
15. 15
COMMERCIALIZATION ACTIVITIES
1. Expansion of additional
Production Facilities
2. Increase in volume of production
3. Product quality development
4. Quality control
5. Product promotion/enhancement
6. Use of good, effective and
attractive packaging materials
16. 16
ECONOMIC INDICATORS
1. Increased Income of the farmers
Gross income of farmers for one year period
>Copra making (for 1 ha. Coco plantation, 150 trees)
150 trees X 40 nuts/tree/year X 0.25kg/nut = 1,500kg
1,500 kg. X 20.00/kg = 30,000.00
>Coco sugar production
150 trees X 0.75 li./tree/d X 26 d/mo. X 12mo./yr. = 35,100 li.
35,100 li. = 4,387.5 kg. X 200.00 = 877,500.00
8 li. sap/1 kg.
2. Create employment (for 150 coconut trees or 1 hectare area)
Labor requirements:
a. mangangarit, 2 pax
b. cook, 2 pax
c. utility man, 1 pax
17. 17
PROJECT IMPACT
1. Health benefits
2. Adaptable at small and medium scale level.
3. Converts residue into high value products
4. Create employment
5. Increase in income
5.1 Nonilon C. Recto, the owner
> Copra making- earned an average gross yearly
income of 30,000 pesos per hectare per year with an
average 150 coconut trees per hectare or 2,500.00/mo.
> Coco sugar- earned at average gross yearly
income of 877,500.00 or 73,125.00/mo.
5.2. Mangangarit ( for 1 pax)
Earned 12,740.00 per month
5.3. Cook
Earned 7, 280.00 per month
5.4. Utility man
Earned 6,500.00 per month
18. 18
PROJECT SUSTAINABILITY
1.Abundace of coconut trees in the area.
2. Available skilled mangangarit in nearby
municipalities
3. Technical person from the government to assist the
farmers for financial and technology transfer
4. Continuous planting/ rehab of coconut plantation
in the area.
5. Conduct of regular meetings/monitoring and
coaching
6. Continuous production, product quality
improvement, use of efficient/attractive packaging
materials and product marketing promotions
19. 19
ISSUES/CONCERNS/CHALLENGES & ACTIONS TAKEN
Issues / Concerns/
Challenges
Action Undertaken
1. Typhoon prone >Reinstallation/rehab of production
facilities
2. Lack of skilled mangangarit
present in the area of production
>Hired mangangarit in nearby
municipalities
3. Insufficient fund for project
expansion
>Seek/ request for financial
assistance to concerned
government agencies (DA, DA-
BAR, DILG, MLGU, etc.)
4. Climate Change >Intercropping of high value crops
(cacao, coffee, etc.) under the
coconut plantation
25. 25
MAG-SIKAP Farmers/Fishermen Association
Officers and Members
President: Leopoldo C. Matriz
Vice President: Felipe A. Tiama
Secretary: Marcel A. Tiama
Treasurer: Erwin B. Peñamante
Auditor: Arnel Toliver
Members:
Nonilon Recto
Guillermo A. Tiama
Wendel M. Tiama
Neil L. Caparros
Bryan V. Tiama
Dominador A. Capisonda
Randal M. Tiama
Lito A. Tiama
Jeffrey C. Recto
Arman A. Tiama
Benjamin O. Villaflor Jr.
Adviser