Case presentation - Strong Market Orientation (SIUFMULCO)

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A short presentation on how the San Isidro Upland Farmers Multi-Purpose Cooperative penetrated the market through abaca fiber production.

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  • Greetings… I am Leonora A. Mila the manager of San Isidro Upland Farmers Multipurpose Cooperative (SIUFMULCO). I would be giving you some view points about our organization…
  • SIUFMULCO was registered with the Department of Labor and Employment (DOLE) in August 1991 and transformed into a cooperative in January 1998. It is located at Purok 1, Barangay San Isidro, Santiago, Agusan del Norte, Caraga with a total membership of 95 small farmers – there are 40 males and 55 females.
  • SIUFMULCO was organized in 1989 under the Integrated Social Forestry (ISF) program of the DENR..Thoough first registered with DOLE, the organization found it strategic to transform into a cooperative in 1998 with only 23 members contributing a total of PhP3,200.00 CBU.
  • SIUFMULCO envisioned a model cooperative…. and its mission is to have members with incessant…
  • The organization has implemented several entrusted projects. We have the 115 hectares agorforestry project….and native chicken production funded by the Community Based Resource Management Project (CBRMP) in 2002; DAR/IFAD NMCIREMP extended assistance to the Green Corn Production Project amounting to PhP120,000.00 in 2005; DOLE also provided us capital amounting PhP176,000.00 to start our abaca fiber production and trading business.
  • Our partnership with the Australian Agency for International Development - Philippines-Australia Community Assistance Program (AusAID-PACAP) emanates after the approval of our project proposal “Enhancing and Protecting an Agroforestry Area Through Abaca Fiber Production”, the proposal of which was crafted by the Department of Trade and Industry (DTI). The project is under the supervision of the Lake Mainit Development Alliance (LMDA) the lead organization for the Lake Mainit FOCAS. On the otherhand, the Fiber Industry Development Authority (FIDA) provided trainings on fiber grading, provides abaca industry updates and also conducts regular visits to our abaca nursery.
  • PACAP has provided an amount of PhP50,000.00 for abaca Seedling nursery. Abaca seedlings were provided to members, thus expanding the areas planted.
  • About PhP583,380.00 were allotted for the 60 hectares abaca plantation establishment.
  • PACAP has also provided an amount of PhP270,000.00 for the construction of SIUFMULCO warehouse. Purchased abaca fiber are stored in the building before it is marketed. The expansion of the consumer store will also be placed in this building.
  • The delivery truck helped the organization explore a more profitable market opportunity. Transport of products is made easy.
  • The purchase of office equipment like computer has improved the recording system of SIUFMULCO and enhanced staff knowledge and skills in the latest technology.
  • Our major business is abaca fiber trading. Since our plantation has not attained harvestable stage we opted to establish buying stations in the 8 municipalities of Agusan del Norte. We offer the highest prevailing market price to encourage farmers to sell abaca fiber to our buying stations. Abaca fibers are consolidated for pre-classification before marketing.
  • With the training assistance of DTI-ADN we produce abaca fiber handicraft such as hat, table runners, bags, place mats, wine holder, wall decor and gift bags.
  • The abaca seedling nursery was constructed to produce seedlings for plantation expansion under PACAP project. However, interested buyers started to purchase seedlings from the cooperative which later became another source of income.
  • The advent of PACAP project increased the income of the store. Most clients in fiber trading business visiting suifmulco prefer to purchase items from the store than stopping in another store before going home. Income from seedling production enterprise was also invested as additional capital for the consumer store.
  • The management structure that we followed is the CDA prescribed structure.
  • SIUFMULCO has observed the following benefits…for economic…
  • … increased coop income…
  • The social benefits are…
  • … gained trust…
  • In environment… individual farms…
  • … improved forest cover…
  • Case presentation - Strong Market Orientation (SIUFMULCO)

    1. 1.
    2. 2. Profile Name : San Isidro Upland Farmers Multi-Purpose Cooperative (SIUFMULCO) Registration: CDA Reg. No. CARA-0395 - January 1998 DOLE Reg. No. 10-520-91 - August 1991 Address : Purok 1, Brgy. San Isidro, Santiago, Agusan del Norte, Caraga Region Contact E-mail : [email_address] Mobile: +63 919 536 8664 Total coop members: 95 (40 Males and 55 Females)
    3. 3. <ul><li>Organized in 1989 through the Integrated Social Forestry Program of Department of Environment and Natural Resources (DENR) </li></ul><ul><li>First registered in Department of Labor and Employment (DOLE) in August 1991 as San Isidro Upland Farmers Organization (SIUFO) </li></ul><ul><li>In 1998, the organization was transformed into a cooperative named SIUFMULCO with an initial Capital Build-Up of P3,200.00 of 23 members only. </li></ul>Brief History
    4. 4. Vision A model cooperative with compliant, faithful and devoted members headed by officers with unquestionable integrity. A self-sufficient organization providing unparalleled service and commitment to the community Mission Members with incessant and active involvement in every cooperative activities. Maintain self-discipline, coupled with love, hard work, service oriented and trustworthy officers. Insatiable quest for novel for the betterment of the cooperative.
    5. 5. <ul><li>Projects Implemented </li></ul>Profile <ul><li>115 has. Agro-Forestry Project (CBRMP) </li></ul><ul><li>12 has. Micro-Watershed (CBRMP) </li></ul><ul><li>0.5 has. Ampalaya Production (CBRMP) </li></ul><ul><li>Native Chicken Production (CBRMP) </li></ul><ul><li>Green Corn Production (DAR/IFAD-NMCIREMP) </li></ul><ul><li>Abaca Fiber Production and Trading (DOLE) </li></ul>
    6. 6. Partnership with PACAP In March 2007, SIUFMULCO implemented a PACAP assisted project entitled “ Enhancing and Protecting an Agroforestry Area Thru Abaca Fiber Production” Lake Mainit Development Alliance
    7. 7. PACAP Assistance Abaca Farm Establishment Grant Funds = Php 1,600,000.00
    8. 8. PACAP Assistance One of the 60-hectare abaca plantation
    9. 9. PACAP Assistance Enterprise Development Grant Funds- PhP822,000.00 Before Now
    10. 10. PACAP Assistance
    11. 11. PACAP Assistance Administrative and Project Management Grant Funds = PhP364,000.00
    12. 12. PACAP Assistance <ul><li>Capability Building, Institutional Development </li></ul><ul><li>Grant Funds-Php304,000.00 </li></ul><ul><li>IEC </li></ul><ul><li>Grant Funds-PhP10,000.00 </li></ul><ul><li>Monitoring and Evaluation </li></ul><ul><li>Grant Funds-Php100,000.00 </li></ul>
    13. 13. Our Enterprise Abaca Fiber Production and Trading
    14. 14. Our Enterprise <ul><li>Abaca Handicrafts Production </li></ul>
    15. 15. Our Enterprise <ul><li>Abaca Seedling Production & Marketing </li></ul>
    16. 16. Our Enterprise Consumer Store Before Today
    17. 17. Management SECRETARY TREASURER A and I COMMITTEE CREDIT COMMITTEE ELECTION COMMITTEE BOARD of DIRECTORS GENERAL ASSEMBLY EDUCATION COMMITTEE MARKETING COMMITTEE AGRO-FORESTRY / M & E COMM. AGRI-LIVESTOCK COMMITTEE GEN. MANAGER
    18. 18. Management GEN. MANAGER BOOKKEEPER L E N D I N G LOAN OFFICER ABACA TRADING PROJECT IN-CHARGE CASHIER COLLECTOR DRIVER C O N S U M E R STORE SALES CLERK ABACA CLASSIFIER
    19. 19. Benefits <ul><li>ECONOMIC </li></ul><ul><li>Increased employment in the cooperative from 4 in 2005 to 11 in 2008. </li></ul><ul><li>Farmers accessed high price of abaca in local market. </li></ul><ul><li>Presence of vehicle improved business mobility. </li></ul>
    20. 20. Benefits <ul><li>ECONOMIC </li></ul><ul><li>Increased coop income from Php 94,490.16 in 2006 to Php 580,624.95 in 2008 </li></ul><ul><li>Establishment of 8 buying stations in other municipalities ( e.g. Cabadbaran, RTR, Buenavista, Nasipit, etc ). </li></ul>
    21. 21. Benefits <ul><li>SOCIAL </li></ul><ul><li>Renovation of the consumer store building and office. </li></ul><ul><li>Increased community awareness on the sustainable benefit of abaca than mining. </li></ul><ul><li>Enhanced product quality thru trainings provided. </li></ul>
    22. 22. Benefits <ul><li>SOCIAL </li></ul><ul><li>Gained trust and developed strong partnership with line agencies ( e.g. DTI, FIDA, DENR ) </li></ul><ul><li>Developed community/ coop members’ trust. </li></ul><ul><li>Staff acquired knowledge in computer operation. </li></ul>
    23. 23. Benefits <ul><li>ENVIRONMENT </li></ul><ul><li>Individual farms developed into abaca plantation. </li></ul><ul><li>Minimized community influx to forest area for timber poaching. </li></ul>
    24. 24. Benefits <ul><li>ENVIRONMENT </li></ul><ul><li>Improved forest cover. </li></ul><ul><li>Community adoption to multiple land management system. </li></ul>
    25. 25. Coop Financial Situation Table 2. SIUFMULCO Abaca Fiber Trading and Production Enterprise Income Statement for the Period January to September 2008 Amount % of Sales Gross Sales   4,480,333.15 100.0% Less: Cost of Goods Sold 3,705,471.55 82.7% Gross Income from Sales 774,861.60 17.3% Add: Other income 3,122.50 0.1% Gross Profit 777,984.10 17.4% Total Operating Expenses 96,421.12 2.2% Net Income from operations 681,562.98 15.2%
    26. 26. Lessons learned <ul><li>Responsible Leadership. </li></ul><ul><li>Market linkage and partnership with bigger Grading and Bailing Establishments inside the Region, in Davao, Cebu and Leyte. </li></ul><ul><li>Provision of incentives to regular coop clients (e.g. patronage refund to non coop members) </li></ul>
    27. 27. Lessons learned <ul><li>Transparency and honesty (e.g. financial reporting every other month) </li></ul><ul><li>Continuous research and innovation ( e.g. market, product, management systems) </li></ul>
    28. 28. Marketing Challenges and Opportunities <ul><li>CHALLENGES </li></ul><ul><li>Global financial crisis. </li></ul><ul><li>Fluctuating market price on abaca. </li></ul><ul><li>Market competition. </li></ul><ul><li>Product quality. </li></ul><ul><li>Attain Grading & Bailing Establishment (GBE) level supplier </li></ul>
    29. 29. Marketing Challenges and Opportunities <ul><li>OPPORTUNITIES </li></ul><ul><li>Market demand is very high on abaca fiber. </li></ul><ul><li>Close relationship with GBE (e.g. Ching Be Trading-Davao) </li></ul><ul><li>Presence of transportation vehicle </li></ul>

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