ZN Resettlement Cluster Integrated Rubber Enterprise

Location

Municipalities of Tampilisan, Salug, Godod and Leon Postigo in the Province of Zamboanga del Norte

Baseline Profile

The four municipalities have a total number of 78 barangays break down into: Godod – 17 barangays; Leon Postigo- 18 barangays; Salug – 23 barangays and Tampilisan – 20 barangays.

The Resettlement ARC cluster extends over 56,723 hectares of land. About 46,010 hectares or approximately 81% are agricultural lands while the remaining 10,880.4391 or 25% are classified as forest reserves, pasture lands and others. The six ARC within the cluster are predominantly agricultural areas where 82% of its land is devoted to agricultural production. Consequently, agriculture is also the main source of livelihood and employment for the majority of the population.

Agricultural land comprises 81% of the resettlement’s land area. Corn, coconut, rubber and rice are the dominant crops which constitute 68% of the resettlement’s cropped area. The rest of the agricultural land are devoted to the production of other crops such as banana, cacao, coffee, vegetables and fruits and root crops.

Rubber dominates the agricultural landscape of Tampilisan and Godod municipality. The reported yield ranges from 1.3 to 1.625 metric tons of cup lumps per hectare per year or approximately 650 kg. to 800 kg. of dry rubber content (DRC). The current crop yields are way below the potential yield of high yielding commercial clones which can produce from 2,000 to 3,000 kg. of DRC per year. Based on site assessments, most of the existing trees are already old and under productive. Significant number of the mature farms also used un-propagated seedlings or wildlings as planting materials that resulted in substandard yields. The total area reported under rubber production in these ARCs is 8,383.84 hectares.
The climate in Zamboanga del Norte is a combination of Type III and Type IV. It is considered a typhoon free area although slight to moderate winds are occasionally observed in the coastal barangays. The dominant wind direction in the area is the southeast direction also known in vernacular as HABAGAT. In recent years, dry periods have been observed to occur between January to April while heavy rainfall occurs between June to October. Of the 4 municipalities, PAG-ASA has classified Salug municipality under Type III. This suggests that there are no pronounced maximum rain periods and the distinct dry season last for 1 to 3 months within a year.

The total land distributed in the Resettlement area is 18,436.8921 hectares, representing 92.6% of the target area for distribution. The award benefited a total of 4,458 Agrarian Reform Beneficiaries (ARBs). The biggest area of landholdings awarded as well as the number of ARB coverage is in Tampilisan and Godod municipalities. Leasehold contracting covers a total of 4,031.9845 hectares, benefiting a total of 827 Agrarian Reform Beneficiaries.
The total accomplishment of land distribution in the ARC Cluster as of September 30, 2012 is 18,942.209 hectares within the scope of 20,522.454 hectares comprising of a total 3,868 number of ARBs.

Development Issues

A key challenge then is to assist smallholder ARBs to capacitate themselves and invest in replanting and expansion of their unproductive farm areas. Recent development and observations have shown that the farmers have explicitly expressed the need for material and technical support to improve farm productivity as well as knowledge and skills for developing farms and improving maintenance, harvesting practice and marketing.

Combinations of traditional and high-value crops are grown in the different parts of the resettlement areas. Coconut is the dominant crop in the Triple “M” ARC and Hillside ARC. While corn is the leading crop in Mauswagon, SBLP, Chrismusu and Triple “M”S. Corn crops are typically planted in open field and as intercrops underneath perennial crops like coconut and rubber. Corn is mainly cultivated for consumption purposes. Surplus corn harvests are either used as seeds stock for future planting or sold to buyers to generate cash savings. Further, irrigated and rain-fed rice are the leading crops planted in the low lying areas of Camul, SBLP and Rubber Stumps ARC. In Poblacion Godod, SBLP, Chrismusu and the two ARC areas in Tampilisan – Rubber Stumps and expanded Camul ARC and other upland barangays, rubber is the main crop and source of livelihood of the farmers.

Rubber is the dominant crop in the entire cluster accounting for roughly 39% of the total agricultural areas planted to major crops. A significant portion of the existing rubber areas in Tampilisan as well as those in the Chrismusu ARC are already very old with tree age ranging between 30-45 years old that already require immediate replanting / rehabilitation.

In the past years, post- harvest facilities like rice-corn mills and rubber processing plants were established in some ARC sites that complemented the agricultural production activities in the area. To date, there are two (2) rubber processing facilities operating in Tampilisan and seven (7) rice-corn mill machineries (with solar dryer) operating in Godod, Tampilisan and Salug. The neighboring municipalities of Titay and Ipil in Sibugay province are also currently operating two (2) crumb rubber processing plants. The presence of these facilities provides strategic advantage to farmers residing within the ARC cluster and those farming in the peripheries.

Rubber processors deploy agents that participate in the weekly or bi-weekly buying of cup lumps / coagulant at the designated Bagsakan Center of each municipality. In areas that are very remote and are beyond the reach of the buyers or middlemen, farmers stocked their produce for a certain period of time (to increase volume) before they sell the raw materials in buying stations or agents that offer better prices.

Goals and Objective

• To enable members to market products together, thereby obtaining reasonable prices for their products through the marketing agreement forged with Goodyear ARB Multi-purpose Cooperative (GARBEMCO)
• To provide credit assistance to members through this ARBO for rubber marketing purpose
• To promote women participation in rural enterprise through involvement in the development of their cooperative
• To increase the household income of the rubber farmers in Zamboanga del Norte Resettlement Cluster by 50 % in 2018 and 100% in 2021.

Strategies

For the rubber growing ARC clusters in Tampilisan, Salug, Leon Postigo and Godod, the project will assist poor farmers and improve farm productivity through Rubber Based Farming Systems (RBFS) development and secondary crops enhancement covering 4,200 farmers within the project period of 5 years. It is designed to cover more or less 4,200 hectares of farms, consisting of 39 barangays of Tampilisan, Leon Postigo, Salug and Godod municipalities. The project is targeting the development of 450-550 rubber trees per farmer-household, planted and maintained following the Good Agricultural Practices (GAP) protocols for both rubber and secondary crop farms. Farmers will be provided sufficient training to improve efficiency and skills in rubber farm development and crop maintenance and capacities to productively engage in at least one-secondary crop business per household. Table 6 below shows the target area to be developed for rubber and secondary crops within the project period. In implementing this sub-component, the project will finance the inputs requirements of one hectare per farmer.

Implementation and coordination will use as platform the convergence of DAR, DA, DENR, DTI and other agencies to enable complementation of resources and synchronization of activities to enhance positive impact and sustainability of the project interventions.

DAR will lead the implementation of the project and mobilize existing structures at national, regional, provincial and municipal levels to implement project activities. Partner agencies shall designate their respective CONVERGE Liaison Officer as point person to coordinate and harmonize activities in the project areas.DAR shall call on the other agencies when their expertise is required in the project.

The project will also pursue training of outstanding farmers as Para-technicians in each ARBO to develop local capacities for extension and monitoring. The goal is to develop barangay- based competencies capable to address technical needs of the farmers as the development of the crops progress. They will assist in providing extension and monitoring work once the rubber farms and secondary crops are established in their respective localities. Their specific task will include providing technical assistance to fellow farmers who may encounter basic problems related to land preparation, crop cultivation and maintenance practices, pest and diseases control and other gaps that affect farming practices. They will also serve as frontline technicians that provide feedbacks to the CEWs and ARBOs especially in areas that are beyond their competencies to address. The assignment of Para techs will allow the CEWs to spend more time and attention in new areas slated for establishment that need closer supervision. A ratio of 1 Para-tech for every 40 farmer beneficiaries shall be considered for training.

For farmers with existing productive rubber that are not yet due for replanting, technical training and extension to improve knowledge and skills in rubber tapping, post-harvest systems and practices, crop maintenance, marketing and farm management shall be extended to optimize productivity of their existing crops. The assistance will also include monitoring and inspection of rubber farms to assess its status and recommend measures to improve productivity. The assessment will include field conditions like: availability of productive bark reserves, farm maintenance practices including weeding and fertilization, tapping systems & practices – including harvesting frequency, tapping intensity, bark consumption, depth of tapping cut, cup lump collection practices, post- harvest handling, storing and marketing and other vital factors that directly influence crop yields. The project will develop production guidelines and field monitoring tools to help improve crop performance based on the results and gaps identified.

For efficient monitoring, the project will develop ARC database through base-line profiling, mapping and inventory of farm profiles for project operations planning/programming, geo-tagging of completed project farms, for project and post-project monitoring, and rubber-industry data base enhancement. The database will also be used as reference for training interventions and resource mobilization for government and private sector participation.

Investment Needs

For rubber, this involves replanting and development of 2,762 hectares. 1,600 hectares for old and unproductive areas and 1,162 hectares’ for new areas for expansion.
For secondary crops development, this involves: White Corn 1,600 hectares / Inter crop in rubber, Yellow Corn 438 hectares & Cacao 1,000 hectares / under coconut trees).
The project is estimated to cost PhP 441,622,356.20 over a five year period. The cost estimates is inclusive of 2.5% price contingency and 10% physical contingency. Component 1, Rubber Farm Development is the biggest in terms of cost at PhP166,321,850 or 37.66% of total project cost. The other components account for the remaining 62.34% of total project costs.

Market and Opportunities

The Lead ARBO will act as consolidator of the rubber cup lumps sold to them. Buying stations shall be identified in strategic places which are convenient to the rubber producers. The hauling truck shall collect and pick up cup lumps from these buying stations and deliver to the Goodyear Agrarian Reform Multipurpose Cooperative (GARBEMCO) a cooperative-owned rubber processors operating in Kabasalan, Zamboanga Sibugay. The said processors has a processing capacity of 40 metric tons per day or 14,600 MT per year Accordingly, the marketing contract with GARBEMCO provides for P2 pesos incentive per kilogram of cup lumps.

The price reference board of the Department of Trade and Industry in Zamboanga Sibugay will be used as reference for the buying price of cup lump.

To formalize the business partnership, CATAMCO will forge a Marketing Agreement with GARBEMCO and Memorandum of Agreements (MOAs) with the participating ARBOs such as: Camul ARB Multipurpose Cooperative in Camu, Tampilisan, Dinuan ARB Cooperative in Dinuan, Salug; Sta. Maria ARB Multipurpose Cooperative in Sta. Maria, Leon Postigo; Mauswagon ARB Association in Mauswagon, Godod and Godod Farmers Multipurpose Cooperative, in Poblacion, Godod.

The project proposes the procurement of one brand new hauling truck costing (P1.5M) which will be used in the trading of rubber cup lumps. Per initial study, a warehouse would not be necessary because the ARBO can deliver anytime there is enough rubber cup lumps collected from the buying stations. There is no need to wait for the GARBEMCO hauling truck to schedule the pickup of the cup lumps because of the minimum 8,000-kilogram-per-delivery policy of GARBEMCO. Moreover, it is advisable that ARBO shall deliver cup lumps to the buyer as soon as it is viable because the former badly needs fresh funds which can be roll-out again to buy more rubber cup lumps. The farmers prefer the payment of their produce by cash on delivery (COD) because they badly need the money for their children’s education, agricultural inputs, subsistence and other necessities.

Gender, Youth and Indigenous Peoples

The major change in gender relations is in the aspect of decision making. The Project targets 30% of Women and 15% IPs to be part of the beneficiaries. Women will be given a marked role in the cooperative as they will be part of the decision making in the enterprise. Men will learn the discipline of savings and to respect women as a productive economic partner. Youth will play a vital role in the farm production and other operational works of the project.

Expected Outcomes

Enhancement of existing Productive rubber
• Improved crop performance, productivity and incomes of farmers through improvement in tapping systems and practices, crop maintenance and marketing.
• Conducted study and implemented Pilot enterprise project on cup lump trading if found feasible.

Community Farm Organizing, PO Capacity Enhancement and Institutional Development
• Identified and selected ARB and potential Non-ARB farmers for project enrollment.
• Organized farmers organization / POs per project barangay and participated in the DAR CONVERGE strengthened project partnership commitment through formal agreements or MOAs.
• Improved confidence, competencies of farmers and ARBOs and adopted farming systems appropriate to their farms.
• Improved appreciation and cooperation of farmers and ARBOs in project implementation, development of value chain and community based enterprise projects and collaboration with various stakeholders and players
• Enhanced partnership and project coordination with LGU partners and private stakeholders.

Sustainability Measures

The project will provide wide range of opportunities that will benefiting the ARBs and Non-ARBs in the ARC Cluster.

✦ Generation of rural jobs. The project will generate community and household jobs starting from the establishment phase until the production phase of rubber. At a minimum, the project will generate 1,500 farm jobs (at 110 man-days/ha) during the establishment phase and at least 2,762 jobs and or farm labor upon maturity of rubber through tapping and maintenance. These jobs generation do not include downstream and upstream work opportunities for men and women that will be created as a result of the project.

✦ Revenue infusion in rural economy. At a conservative gross income of Php 114,000.00 per hectare, the 2,762 hectares of fully developed rubber- based farms have the potential to contribute Php 314.8 Million worth of revenue every year to the local economy. The projected revenue generation and continuing development program in the project areas can also create opportunities for new investment and jobs in the locality.

✦ The planting of tree crops (rubber) is highly beneficial in predominantly rolling and sparsely planted farms of the ARC settlement sites. Rubber trees are considered reforestation crop because it can contribute to the rehabilitation of the dwindling forest cover and also help mitigate soil erosion when planted in sloping / rolling areas of the farms. Rubber trees also improve soil condition and organic matter content because of its biomass contribution to the top soils through the annual shedding of its leaves & natural thinning of mature branches. The trees also have good carbon sequestration properties that help reduce carbon dioxide (CO2) pollution in the atmosphere.

✦ Enhancing /sustaining institutional support systems. The project will allow POs and ARBOs develop capacities that will help them assume community leadership and possibly influence LGU policies pertaining to local economic development and infrastructure support for the ARCs. The incentives that will be provided through project will encourage LGUs to provide its share in the development effort. Further, the project will also enhance inclusive participation among community residents as it develop opportunities for value adding investments and projects within the ARC clusters.

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