OTOPreneur 2012 April

Magazine of the Department of Trade and Industry
APRIL 2012 ISSUE
Semi-annual m agazine of the D epartment of Trade and Industr y
Homegrown Business Partners in the Countryside
EDITORIAL BOARD
Editor-in-Chief Merly M. Cruz
Undersecretary DTI-RODG
Editor Dominic P. Abad

Regional Director DTI-6
Enabling Business.
Empowering Consumers
Secretary Department of Trade & Industry
Executive Editor Gregory L. Domingo
One Town
One Product
Homegrown business partners in the countryside
Managing Editor Rey F. Reroma Editorial Consultant Maria Lourdes M. Luces Copywriting/Editing Cyrus Alvarez Conchita B. Lacsamana Contributing Writers Edmundo B. Cabral Jr. Stephanie Santos Carlos S. dajao Archilles V. Arberto Floressa May V. Castro Amelia V. Galvez Zenaida M. Quinto Emily Ilovita V. Mesina Blair Panong Jojisilia Villamor Lemuel R. Montes Roger D. Sarsalejo Irwin Jayson Neri Jamaca Junar B. Merla Patrick Kim B. Evangelio Marie Anne J. How Nancy Gerona Echavez Vanessa Claire Tero-Plena Stephen L. Kintanar Photographers Edgardo T. Pangilinan Joel Arthur P. Tibaldo Wilfred Tristan L. Carbonell Famelah Racquel D. Villanueva Jenny Grace Molbog-Mendoza Charlito B. Bagasbas Design & Production Ideabank, Inc.
THE OTOPRENEUR MAGAZINE IS PUBLISHED SEMI-ANNUALLY BY THE REGIONAL OPERATIONS AND DEVELOPMENT GROUP OF THE DEPARTMENT OF TRADE AND INDUSTRY, MAKATI CITY, PHILIPPINES For inquiries, comments and suggestions on OTOPreneur magazine, email the Managing Editor: Rey.Reroma@gmail.com Visit www.otopphilippines.org to download free copies of OTOPreneur Magazines
Semi-annual m agazine of the D epartment of Trade and Industr y
Cover and Back Cover Photos: Banig products of tikog Basey, Samar. To know more on Banig products from Region 8, download a free copy of OTOPreneur magazine at www.otopphilippines.org.
2 OTOPreneur Magazine April 2012
Message from the Secretary
It is no easy task. But that is exactly how we at DTI want it to be that our services matter to the entrepreneurs. This 5th Issue of the OTOPreneur features our milieu of assistance that will enable, empower, and trickle down to the masses. The Philippines is at the crossroads. Tough times call for tough measures. This is so true today when global market challenges confronting businesses seem insurmountable. It could be more daunting for the small entrepreneurs. As we embark on a long overdue quest towards a competitive Philippines poised to become the new Tiger of Asia, our marching orders are clear: As we continue to rely on the resiliency of the Micro, Enable rather than just assist. Empower rather than simply provide. Reach out and be felt. Small and Medium Enterprises (MSMEs) to revitalize the Philippine economy, we will soon realize that inclusive growth is not far-fetched after all. Soon, shared services facilities in product design and packaging will be set up in strategic areas to help bring Philippine products within the reach of the discriminating global market. We will strongly pursue the cluster-based industry development using value chain as a tool. We will continue to develop industries using the industry clustering approach through the National Industry Cluster Capacity Enhancement Project (NICCEP).
Gregory L. Domingo
Secretary Department of Trade and Industry
April 2012 OTOPreneur Magazine 1
Undersecretary Regional Operations and Development Group
Merly M. Cruz
A cluster-based industrial development paradigm

growth of the MSMEs in order to achieve a globally-competitive and innovative industry and services sector contributing significantly to employment generation and inclusive growth. The thrust is to provide the Big Push for SMEs (refer to the Framework below) to enable them to meet those challenges by providing them access to market and finance, implementing a program for productivity and efficiency and creating conducive business enabling environment. Using the industry cluster approach, DTI will build alliances with relevant agencies and institutions to develop competitive and innovative SMEs.
The Big Push for SMEs:
Building Alliances for the Common Good

he development and promotion of industry clusters is a major strategy under the DTI Roadmap and the Integrated DTI-RODG Workplan and is in sync with the strategic framework of the MSME Development Plan and the Philippine Development Plan (PDP) 20112016. In particular, Chapter 3 of the PDP is crafted with a goal of helping accelerate
The BIG PUSH for SMEs: A Framework

The following are specific interventions: Business Development Services, which include marketing, entrepreneurial capacity building and product development; Credit guarantee to facilitate and ensure MSMEs access to commercial sources of finance and capital; Shared Service Facilities, which includes provision of the key technology, skills and critical equipment and facilities; and Micro Enterprise Development to be purposively pursued in the rural areas and barangays in collaboration with DSWD, DOLE and the LGUs.
Using the Cluster-based Industry Development Strategy

Going National with NICCEP: Fostering a Nationwide Innovative Mindset in Transforming Industries
JICA Philippines jointly with DTI-RODG conducted convergence workshops in Luzon, Visayas and Mindanao during the first quarter of 2012. ith the success of the (Davao Industry Cluster Capacity Enhancement Project) DICCEP, adopting this industry clustering approach in the entire country is a natural consequence. The Davao experience showed that most of the sub-projects implemented can be shared and expanded to other regions in similar conditions all over the country. DICCEP was instrumental in pushing industry and enterprise development in Davao that the international donor community took notice and even earned for DTI a Good Practice Award in 2010. Recognizing the industry cluster model as an effective collaborative strategy for sustainable and equitable regional development, the DTI saw value in replicating the program in all regions. We were not alone in this quest as the move was strongly supported by JICA (Japan International Cooperation Agency) Philippines. In the last quarter of 2011, the Ministry of Foreign Affairs (MOFA) in Japan approved the National Industry Cluster Capacity Enhancement Project (NICCEP) under Japans Technical Cooperation Program in what will be a nationwide implementation of industry clustering using the value-chain approach. The project will officially start in the second quarter of this year with the arrival of Japanese experts tapped for this engagement. Preparations for the implementation of NICCEP are underway. Prior to the dispatch of JICA Experts, JICA Philippines in coordination with DTI-RODG has been conducting convergence workshops in Luzon, Visayas and Mindanao during the first quarter of 2012. These workshops aim to explore possible complementation and collaboration with other development partners and relevant organizations in the implementation of NICCEP and seek potential areas for cooperation particularly in capacitating the key players and Micro, Small, and Medium Enterprises (MSMEs) in identified industry clusters. Through the workshops, members of the Davao Industry Cluster Capacity Enhancement Project (DICCEP) cluster teams on Banana, Mango, Tourism, Wood, Mining and ICT will share experiences and best practices acquired during their overseas engagements and apply lessons learned to Industry Clusters in Davao. Site visits to successful industry clusters are being undertaken drawing on the experiences of these early program participants to serve as benchmarks for succeeding industry clusters.
NICCEP and the Value Chain Approach in Industry Clustering

imply put, value chain (VC) is the sequence of related business activities or functions from the provision of specific inputs for a particular product to primary production, transformation, marketing and up to final consumption. The benefits of VC cannot
be more pronounced than what it can do in todays fierce business environment where commercial relations are subject to rigid rules of law often hidden in social networks. VC integration is on the rise for economic reasons. Costs are reduced through logistics supply chain management. Quality is dictated by chain-wide standards. Opportunities for new and emerging industries are opened, benefiting MSMEs in the process. The current economic order calls for close coordination of production and distribution along the chain to comply with quality requirements and reduce cost of logistics. Greater networking between firms is needed to promote investment and enhance value addition. This will be the norm that enterprises in an industry must adhere to in order to grow and succeed. Value chain will be the mode that will be pursued by industries spread out in the 16 regions identified for assistance under the NICCEP.
LUZON (8) Milkfish, Dairy, Coffee, Bamboo, Tourism ICT, Health & Wellness (H&W) and Wearables & Homestyles
VISAYAS (5) Gifts, Decors & Housewares, Tourism, ICT, and Health & Wellness MINDANAO (12) Banana, Mango, Coconut, Seaweeds, Wood, Mining, Tourism, ICT, Rubber, Poultry, Tuna and Palm Oil
NICCEP covers at least 21 priority industries in the country chosen after a series of consultation
The clusters are divided into four (4) major island groupings; Luzon North, Luzon South, Visayas (Cebu), and Mindanao (Davao). Each island group is headed by a Project Director. Each industry cluster will have its own industry manager. To date, 18 industry managers composed of DTI officials were tapped to lead in steering and monitoring their respective sectors. While priority sectors were identified, each region will still continue to other industries befitting the resources, technology, skills and considering the cultural dimension in the locality. This is how integration works in creating convergence between and among the various industries in an area. Industry clustering creates a dynamism that creates all sorts of opportunities for anyone with an initiative.
OTOP, the Harbinger of Industry Cluster in the Regions

Based on OTOP National Reports from DTI, OTOP generated PhP13.369 billion total investments from 2005 to 2011 (an average of PhP2.228 billion/year). It created 67,516 MSMEs for the same period (an average of 11,252/year). It generated 501,860 new jobs and direct jobs sustained for years 2006 to 2011 (an average of 83,643/year). Sales generated by the OTOP products and services have been steadily increasing annually with total export sales of US$ 854.571million and domestic sales of PhP 19.699 billion (both for 2006-2011 period).
t is worthwhile to mention that the One Town One Product (OTOP), another successful program utilized the proverbial industry clustering approach. OTOP promulgated enterprise development that led to job generation and stimulated local economies. Its results has been felt so strongly in mitigating poverty in the countryside based on an assessment conducted by the Development Academy of the Philippines (DAP) in 2010. Last year OTOP has been well-received by both program implementors and beneficiaries that the program has been approved for extended implementation. Because of the generally positive outlook on earlier clustering approaches, NICCEP will draw from these experiences further bringing the benefits to a wider area and a larger base of beneficiaries as well as in involving more
PROJECT
Shared Service Facilities (SSF) Rural Micro-Enterprise Promotion Project (RuMEPP) Agricultural Credit Support Program (ACSP) Non-Project Grant Assistance (NPGA) Countervalue Fund of Japan Private Sector Program (PSP) Small and Medium Enterprise Development Project Philippine Traceability for Revitalized Agri-industrty Competitiveness Enhancement (PTRACE)
LEAD AGENCY
DTI IFAD-DTI-SBCorp JICA-LBP EOJ/GOJ-DTI GIZ-DTI
PROJECT TYPE
Equipment grant & technology upgrading/ 2012-2014 Micro-Enterprise Development and Microcredit/ up to 2014 Industry Cluster-based 2011 - 2014 SSF-Capacity Building on green technology/2012-2014 Business Models on Enabling Environment for MSME Development Capacity building on standards and establishment of traceability systems for SMEs/ 2012-2014
UNIDO-DA-DTI
stakeholders. This time, the NICCEP framework offers a platform for convergence of the relevant government agencies and Development Partners as well as private sector organizations. The following projects are identified to complement (converge) in
order to efficiently develop the clusters of industries currently prioritized: More collaborations with other project implementors are being explored. Representations as Industry Cluster Lead Agency are being drawn from various national
government agencies (DOST, DA, DOT, DENR, DepEd, BFAR, etc); LGUs; Academe and Private Sector/Key Industry Leaders; Chambers of Commerce; Donor Agencies Representatives (JICA, UNIDO, USAID, GiZ, etc.).
The SECI Model: Bringing Innovation in Industry Clustering

rudent management has been practiced in Asia for a long time. As Asians face crises and shocks that rock economies, sustainable innovation is key in overcoming the consequences of such phenomena that happen in this region with regularity. An Institute of Sustainable Innovation (ISI) is being proposed to be set up to complement efforts in propagating NICCEP. Its primary functions are: 1. Research the objective is to extract the essence of prudent management and innovation and theorize it. The beneficiaries include the private companies, social entrep and public projects 2. Education and Training to increase the number of phronetic leaders and innovation Asia. producers in 3. Information Dissemination The ISI will use an organizational knowledge creation process known as SECI model developed by Dr. Nonaka et al. This is a model to explain how knowledge is created through the conversion of tacit and explicit knowledge: from tacit to tacit, tacit to explicit, explicit to explicit and explicit to tacit. SECI process is the engine of knowledge creation, and thus the innovation. By applying this concept in organizations or enterprises, innovation becomes a hard habit to break. It becomes cyclic or systemic. SECI model can be explained with core concepts of philosophers.
Socialization is close to the concept of pure experience by Kitaro Nishida, a Japanese philosopher. It is the state prior to the separation of subject and object. It is the phenomenology. Externalization is represented by the dialogue by Plato. It is a process of clarifying the essence of things in search for new knowledge, or the ideal. Combination is about rationalism, the most famous philosopher is Rene Descartes, a Frenchman. Break down into pieces and analyze. Doubt everything. Internalization is pragmatism, particularly by Deweys notion of secondary action, experience which includes reflection in action. In our theory, SECI spiral is the most fundamental innovation process. Empathize with the reality through actual experience (Socialization), condense the essence of awareness into concepts (Externalization), relate the concepts and systemize (Combination), create value in the form of technology, products, software, services
and experiences and embody the knowledge (Internalization), and at the same time stimulate the emergence of new knowledge in the organization, market and environment, and spiral up to the Socialization step. Through continuous and fast spinning of the SECI spiral, a firm can build its synthesizing capability of knowledge to pursue both creativity and efficiency. Socialization - Empathize with the reality through actual experience, Externalization - condense the essence of awareness into concepts, Combination - relate the concepts and systemize Internalization - create value in the form of technology, products, software, services and experiences and embody the knowledge.
In Pursuit of the Common Good

n conclusion, industry clustering will certainly bring about changes that affect formation of enterprises, way of doing business or even fundamental functions of business as a core objective. It will result in strategic alliances that have enduring and far-reaching economic consequences. As industry clustering becomes the rule rather than the exception, it will be evident that the benefits will redound to the common good the industry, the entrepreneur, the consumer, the government, the community. In other words, the entire gamut of business value chain results in inclusive growth that has long eluded developing economies.
From the Editor
his issue of the OTOPreneur magazine features the recent accomplishments and successes of the OTOP program that have been made possible under a multi-sectoral partnership. It shall be noted that the role of the Local Government Unit (LGUs) as one among the OTOP partners is specially highlighted in this issue. Like the OTOP program, the 5th OTOPreneur magazine is a collaborative undertaking. The contributors are mostly Information Officers from the 16 regions of the country. We hope that you enjoy this issue of OTOPreneur as much as we have taken great pleasure in preparing it. Dominic P. Abad
Regional Director DTI-Region 6
Contents
Contributors................................................12 OTOP National Expo....................................14 Newsbits from the Countryside..................17 SMEDSEP......................................................26
Old Recipe, New Markets
Since 1939, Antonio Pueo Incorporada, the oldest chocolate factory in the Philippines, has dedicated itself to producing the finest quality chocolates in the old colonial traditions. Using a centuries-old recipe and island grown chocolate beans, the company gets the push that it needs to conquer new markets here and abroad. April 2012 OTOPreneur Magazine 7
Contents
Region 2
42
There is a whole new meaning for the phrase busy as a bee as Filipino entrepreneurs begin to see the potentials of honey. Apiculture or beekeeping is now considered a profitable activity, especially up north in the Province of La Union. All hands are on deck to support this fledgling industry to help small farmers and other marginalized sectors by providing additional source of income through bee products.
Peablancas reputation as a premier eco-tourism destination and tourist capital of the Province of Cagayan made it easy to adopt eco-tourism as its OTOP. The municipality is host to several famous caves, such as Callao Caves, Sierra Caves, San Carlos Caves and other virgin caves in the barangays, Basaw Lake, Blue Lagoon and Mt. Ceteceo where the Philippine eagle is found. With the full support of its LGU, Peablanca is poised to become one of the top tourist destinations in the country, which is hoped to propel its people towards progress.
FISHY TALE
It started when the city executives of Balanga, Bataan locked their sights on OTOP as their priority program to alleviate poverty and increase employment in the Provincial Capital. Banking on its geographical advantage as one of the coastal areas of the province, Balanga had identified fish processing as the most viable livelihood program that can ably compete in the local and global market. By the end of 2010, there were 83 fish processors that were manufacturing fish products. Three more have been added since then, bringing the total to 86 business players that are competitively venturing in the market. 8 OTOPreneur Magazine April 2012
Contents
50
Rice to Wellness
Sitting idly at home didnt sit well with this stayat-home mom. So, Sheryll Quintana got to work in her kitchen and concocted scented candles to start up her business. With relentless research and innovation, her simple concoction is now the buzz of the wellness industry as it uses the most surprising ingredient in the market for her wellness products: darak!
Region 4B
Faced with a failing business, Merlita Bolus decided to invest in her hobby of cooking native delicacies. Soon, she turned this hobby into a profitable business that not only caters to the needs of her customers but also listens to them to improve her products.
Quilting is certainly an art - an art, a craft, a hobby, a pastime, an outlet for creativity, even a form of therapy. But in todays world it is also an industry - an industry that recently drew people together to see whats new, whats exciting and whats going on in the world of quilting.
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54
Theres nothing nuts about the nut trade in the genteel San Carlos City. With the full support of the LGU, a total of 50 hectares have been planted with nuts, benefitting 20 farmers, since they started this project in 2010. These areas cover 18 barangays and the project is still growing.
Region 8
62
Region 7
Guiuan, Eastern Samar is located at the southernmost tip of Samar, the third largest island in the Philippine Archipelago. But this tail town has been at the forefront of the regions development efforts, most especially in the eco-tourism sector. It was hailed as the best OTOP implementer in the entire region because of its initiatives in tourism development. And the future looks bright for this little town at the tail-end of Samar.
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Region 9
66
Raffia weaving is one of the oldest crafts in Bohol. Local crafters choose raffia not only because it is abundant in the area; raffia fibers are soft, durable, and can be easily integrated with other indigenous fibers and recyclable materials in the weaving process. With the convergence of assistance from the LGU, national government agencies and local and foreign private investors, this humble fiber is turning out to be a strong contender in the local and international markets for woven products. 10 OTOPreneur Magazine April 2012
Supporting Livestock
74
Once generally raised by farmers for subsistence, livestock farming is now a major source of profit among many farmers in Dumingag, Zamboanga del Sur. With a strong support system from the LGU and other government line agencies, livestock farming and trading is gaining a strong foothold in the local market.
Contents
The convergence of support from both the public and private sectors, through the leadership of Valencia Citys LGU, has propelled organic rice as one of the most marketable products from Bukidnon. With this strong support system, Valencias vision of being the Organic Rice Capital of the Philippines is within grasp.While Governor Khalid Dimaporo of Lanao del Norte initiatives recognizes OTOP as a key to rural development providing greater opportunities for livelihood to rural folks.
Region 12
With an iron will and clear vision, the LGU of Monkayo has steered its people from being miners of precious metals to makers of fine jewelry. Inspired by this vision, the local business sector in Diwalwal responded when it organized its own groups to engage in the jewelry industry. Diwalwal Artisans Entrepreneurs Cooperatives (DARTECO) and MSG Diwalwal, are among the OTOP-MSMEs that were born from the inspirational effort and wisdom of LGU-Monkayo in developing the jewelry industry in the municipality.
The effective collaboration of the Municipality of Pres. Quirino, Sultan Kudarat with various government agencies, financing institutions and entrepreneurs is one of the reasons why it was awarded as the Best OTOP Implementer for Mindanao Island. LGUPres. Quirino has taken concrete actions towards the attainment of the OTOP Program objectives resulting to tangible proof. As of the latest data, the Muscovado Industry in this town has earned Php8,279,854.39 in revenue and employs 1,935 workers that comprise permanent, job order, mill, farm and migrant workers.
Region 13
Introduction on featured OTOP flagship industries.........94 COCO Coir................................95 Engineered Bamboo................98 SPIN........................................101 Banig Industry.........................104 UNIDO......................................109
Through the efforts of the LGU of Santiago, Agusan del Norte, substantial economic contributions were gained by the municipality in terms of the development of the abaca fiber after only five years of implementation of the OTOP Program. From a production point, an estimated 200 additional hectares of abaca plantation had been developed. Abaca-related operations, which include abaca production, abaca trading, abaca handicrafts, and abaca nursery making, have also extensively expanded over the years. This tremendous growth is truly a model for a successful implementation of the OTOP Program.
Homegrown Business Partners in the Countryside http://otopphilippines.org/
CONTRIBUTORS
From around the country comes a dedicated group of DTI personnel, mostly, Information Officers whose love for writing and photography had enlivened pages and volumes of DTI communication and information materials. Well-written articles, reports, features, and sharp interesting photos make everyday communication more definable, clear, crisp, and palpable. Whether the subject is as trivial as a tree, or a fish, or a fruit; or as intangible as e-virtual poultry, our contributors had made their subject matters come alive and engrossing. As the clich goes, may their tribe increase.
Joel Arthur Art P. Tibaldo is a true multi-media artist who worked his way through the field of visual and communication arts. He has worked as a news photographer with print publications, a network television editor, a college instructor and a government information officer. He is the current Information Officer III of DTI-CAR. Edmundo B. Cabral Jr. OIC of the Business Development and Special Projects Unit (BDSPU), is a fun-loving guy who dislikes negativity and takes his work seriously. In 2011, DTI-NCR recognized his contributions as an SME officer for having recorded the highest bottomline output in domestic sales in line with his work of promoting business and its development.
Stephanie Santos is a Senior Trade and Industry Development Officer and Arbitration Officer cum Information Officer of DTI-NCR. She is also a budding photographer who has an eye for capturing details. Passionate, purposive, dedicated, and strong in character, she is in control and knows exactly where to invest her time and effort.
Edgardo T. Pangilinan is a Senior Trade and Industry Development Specialist. As Area 4 staff he performed tasks in Price monitoring, PS Monitoring, Information Dissemination, FTIL enforcement, SME assistance, coordination and conduct of trainings/ seminars on SME and CW ICC evaluation, inspection and inventory.
Carlos Charlie S. Dajao Aside from doing photo-documentation and writing news articles on DTI activities and events, Charlie also takes on tasks of other divisions. He is a member of DTI 4As regional pool of assessors that do audit on quality management systems of companies relative to the DTI-BPS product certification scheme. Charlie also participates in enforcement activities and currently leads the internal quality audit (IQA) team of his home office.
Achilles V. Alberto I is a Trade and Industry Development Specialist from DTI Catanduanes, where he has served for 16 years. Achilles is a self-confessed techie. Being a photo enthusiast, he has been a frequent resource person for DepEd photojournalism workshop.
Floressa May V. Castro is a Trade and Industry Specialist as well as the designated Information Officer of DTI Negros Occidental. Her accounts include development work in assistance to OTOP, bamboo development, consumer welfare and the PCPS Project. She is a graduate of Economics from the University of St. La Salle in Bacolod City and she enjoys her free time writing, crafting and working on her photography skills.
Amelia E. Galvez is the designated Information Officer of DTI RegionI. She is presently holding the Senior Trade Industry Development Specialist (STIDS) position assigned at the Consumer Welfare Division. She hones her writing skills through practice and a lot of reading. She believes that communication is the key to better understanding.
Zenaida Zeny M. Quinto, Information Officer of DTI-Region 2, is only on her third year in the Department. She was a professor of Moral Theology at St. Paul University in Tuguegarao City before she transferred to DTI. Zeny holds the plantilla position of Records Officer II. She heads the Public Relations and MIS Unit and is the QMS Regional Documents Control Officer.
Nora M. Reclosado is the Section Head of the SME Development and Special Project under the Business Development Division. She is also the Provincial OTOP Coordinator handling Mariveles and Balanga, Bataan. Furthermore, she handles the Bataan Chamber of Commerce and Industry, Inc. (BACCII), Small Medium and Enterprise Development Council (SMEDC) and represents the Department in the inter-agency associations.
Wilfred Tristan L. Carbonell is the Head of the Management Support Unit. He is concurrently the Information Officer handling production of press release, press coordination and photo documentation of DTI Region-3s major events. Photography and feature story writing seminars provided by the OTOP program boosted his interest in contributing to the OTOPreneur Magazine and in portraying OTOP SMEs.
Emily Ilovita V. Mesina works at the Department of Trade & Industry Aurora Provincial Office (DTI-Aurora) as Senior Trade & Industry Development Specialist. She is assigned as Section Head of the National Economic Research and Business Assistance Center (NERBAC).
Blair Panong is a Senior Trade and Industry Development Specialist working with the Comprehensive Agrarian Reform Program of the Department of Trade and Industry Bohol Provincial Office.
Jojisilia Villamor is an Information Officer III of the Department of Trade and Industry Central Visayas Office. She opines that writing for the OTOPreneur Magazine is a more interesting and innovative way for the DTI provincial and regional offices to report their accomplishments. In her view, the electronic version of the magazine posted on the OTOP Philippines website is a powerful tool to promote products, services and places in the country to the world.
Lemuel R. Montes comes from Borongan, Eastern Samar, but now resides in Palo, Leyte with his wife Grace and three kids, Lem Jr., Xerxes and Cyrus. He serves as the DTI-8 Information Officer and NERBAC-EV Center Manager. He likes reading, basketball and movies. He is also a lawyer.
Roger D. Sarsalejo is Chief Trade and Industry Development Specialist (CTIDS) who is currently assigned in the Business Development Division (BDD) of the Department of Trade and Industry-Zamboanga del Sur Provincial Office in Pagadian City.
Famelah Racquel D. Villanueva is the Planning and Information Officer of DTI-Bukidnon. Her interest in photography resulted in her photos being featured in the front and back cover of the 4th edition of OTOPreneur Magazine. This, she said, was a result of hard work and dedication, plus the basic skills acquired during the photography training she attended in 2010.
Irwin Jayson Neri Jamaca initially joined the Department in the Comprehensive Livelihood Emergency Employment Program (CEEP) in June 2009. Three months later, his career progressed by being part of the CARP family in September of the same year, ensuring countryside development in the communities of Misamis Oriental.
Junar B. Merla is a Senior Trade and Industry Development Specialist of DTI-Bukidnon. He is also designated as the OTOP Coordinator and Investment Promotion Officer of the province. He is thankful for the chance to grow professionally and for propelling him to explore various fields related to his work, including technical and literary writing.
Jenny Grace Molbog-Mendoza is the Information Officer of DTI-XI Regional Office, responsible for the production of the offices radio program, Asenso Ka!, M Magazine, and tri-media releases, among others. She also contributes to the Life and Living in Mindanao Magazine, a Davao City-based magazine.
Patrick Kim B. Evangelio is a Trade and Industry Development Specialist designated as OTOP point person of DTI Compostela Valley. He has been with the DTI for 6 years now and is also the Investment Promotion Officer and Information Officer.
Marie Anne J. How is a Senior Trade and Industry Specialist. She is the OTOP Point Person of Region XI and the section head of the SME Development under the Trade, Micro, Small and Medium Enterprise Development Division. She is currently pursuing a doctorate degree in Organizational Studies.
Nancy Gerona Echavez is a Senior Trade and Industry Development Specialist of DTI-Lanao del Norte assigned in the Business Development Division. She is the Planning Officer and also handles the OTOP program of the province.
Vanessa Claire TeroPlea is handling knowledge management work and does technical jobs such as research, production of promo collaterals, i.e. brochure, flyers, and AVP.
Stephen L. Kintanar Senior Trade and Industry Office (STIDS), DTI-Agusan del Norte
Charlito S. Bagasbas is currently holding the position Trade & Industry Development Specialist (TIDS). Mr. Bagasbas is the Regional OTOP Coordinator and SME Development Promotion Officer. He also acts as High Value Vegetable Industry Cluster account person, Pangasius Development Program account person, Financing Program Account Officer, PWD Focal Person, and BMBE Account Officer.
ith the aim of aiding the growth of progressive municipalities to generate their own products and services and to maximize the use of local skills and resources, the Department of Trade and Industry (DTI) formally launched the five-year extension of the One Town, One Product (OTOP) program by organizing the fist OTOP National Expo last September 21-25 at the SM Megamall Halls 1 and 2 in Mandaluyong City. The event invited promising OTOP entrepreneurs from across the country. The affair showcased products and services of 282 SMEs from 72 provinces advertising food, furniture, home and holiday dcor, fashion accessories, footwear, tourism services, and a range of delicacies that are identified by their particular hometowns. OTOP is one of the programs of the department that has brought progress to
Ribbon cutting at the OTOP National Expo, SM Megatrade Halls 1 and 2 ( from left to right): Congressman Albert Raymond Garcia (2nd district of Bataan, Chairman-Trade and Industry), Mrs. Rowena Domingo (wife of DTI Secretary Gregory L. Domingo), DTI Undersecretary Merly M. Cruz of the Regional Operations and Development Group and Congressman Ryan Luis Singson (1st district of Ilocos Sur).
the countryside. It is a popular program of the Department of Trade and Industry. We are not only able to help the countryside entrepreneurs, but most especially we are able to converge, to work harmoniously and effectively
with the different partners from the local government units, our congressmen, and the private sector, the DTI Undersecretary Merly Cruz said during the expo. Recognizing the skill and talent of the Filipino
entrepreneur, the DTI presented the Most Innovative Product awards at the expo for outstanding merchandise that embodied the spirit of the OTOP Program.
MOST INNOVATIVE PRODUCT (Food Category)

Product: Young coconut bukayo with peanuts Entrepreneur: Arado Sweet Delicacies Producers Association Origin: Leyte
We (in Arado) feel very, very proud We have a unique product. This delectable peanut-infused version of bukayo is a sweet Filipino dessert from young coconut. The DTI helped bring attention to it and gave us the chance to be here in the national expo, she added. In Arado, work starts as early as 4 a.m. The members line up carrying with them the primary components of their trade: coconut shells full of shredded coconut meat, peanuts, and other ingredients the secret that give the bukayo a one-of-a-kind taste. They wait for their turn to dip 20 to 30 coconut shells at a time into huge cooking pans (locally called kawa) filled with melted sugar that has thickened to a syrupy boil. The days cooking usually ends at 3 p.m. The bukayo remains encased in the coconut shell, which is then wrapped in brown paper before being retailed to prospective buyers.
MOST INNOVATIVE PRODUCT

(Non-food Category) Product: Precious Herbal Pillow Entrepreneur: Allaine Chester Sy Origin: Quezon City
he Arado Sweet Delicacies Producers Association in Burauen, Leyte has known the recipe to be one of the most distinct, best-tasting coconut desserts in the Philippines since 1960s. Their best kept secret seemed to stay that waya secret until things recently took a nutty, gastronomic turn. Cheeryl Ducentes, who serves as the business manager for the 30-member association and at the same time the village captain of Arado, said that being chosen as the best among the participants has energized their village. uscle aches had beckoned this young entrepreneur from Quezon City, Chester Sy, to create a microwaveable herb-filled pillow that serves as a hot compress for body pains and a cold compress when stored in the freezer.
Along with his wife, Juvilyn, a pharmacist, Chester researched alternative methods of pain management. They found promise in employing particular herbal seeds that can store both heat and cold coupled with its very fragrant soothing scents. After two years of trials and experiments with numerous combinations of seeds, the couple were finally satisfied with their output. At first, they gave away the items as gifts to friends who were very pleased with the therapeutic effect that they encouraged the Sys to launch the pillow as a business. The couple eventually yielded to the encouragement and sure enough, its a certified winner. As an aid in the relief of discomfort and pain, Precious Herbal Pillow currently has the nod of 16 doctors who have already opted to become dealer-stockists. We already have the mindset of competing in the international marketplace someday, Chester said. He sees its applications in sports medicine for the rehabilitation of injured athletes. Today, the couple continue to experiment with other seeds and pillow shapes for new releases.
hen the times call for innovation, Nestor and Francia Flores of Naga City responded with transformation. The couple faced the prospect of sending their 15-year-old eldest child to study in bustling Manila in the near future. They recognized a lot of adjustments that will be experienced by their daughter. Condominium units and modest apartments in the city often provide limited options for space. With that in mind, Francia and Nestor unveiled the Transfo Bed during the OTOP National Expo. The Transfo Bed is a modular sofa-bed made of Philippine marine plywood and specifically created for small residential spaces. It is a standard single bed that is 36 inches wide and 75 inches long. Unfastening the wheels and panel locks will provide a coffee table and two sofas. This innovation also incorporates six drawers. For the expo organizers, the Transfo Bed is worthy of the Most Innovative Product award in the furniture category. It was a double win for the Floreses during the expo since they also earned the Best Dressed Booth award in the same category for presenting the Transfo Bed and its functions in a simulated condominium space. Its inspiring because people appreciate what we have created. It came from our imagination and now, here it is. We can touch it; we can see it. And the people can use it, Francia said during the expo. The Floreses are no strangers to winning in an OTOP expo the fact that they won the innovation award last year for their race car-inspired pull bed. Currently, the DTI is helping Francia and Nestor to forge large business deals with condominium property developers to supply the Transfo Bed. These awards serve as an inspiration for all OTOPreneurs to be more creative and innovative, further enhancing the quality and marketability of their respective products. Surely, there will be an even more rigid competition among the National Expo participants in 2012!
MOST INNOVATIVE PRODUCT

(Furniture Category)
BEST DRESSED BOOTH

Product: Entrepreneur: Origin: Transfo Bed (Multi-purpose Furniture) Nestor and Francia Flores Naga City
Contact Information: Marievic M. Bonoan Director-in-Charge Bureau of Domestic Trade Ground Floor, Trade and Industry Building 361 Senator Gil Puyat Avenue, Makati 1200 Philippines Telephone: (632) 751-0384 local 2240-2244 Fax: (632) 751-3224 E-mail: bdt@dti.gov.ph www.dti.gov.ph www.otopphilippines.org
Newsbits from the Countryside
hile the OTOP was originally meant to be a five-year program (2004 2010) to help the unemployed and the poor find employment, it was also meant to stimulate economic growth in the countryside. It did that and more. In those five years, jobs were created; robust micro, small, and medium enterprises (MSMEs) soon dotted the regions; investments started to pour in giving rise to more projects; and sales were generated in terms of dollars and pesos. But the psychic benefit through it all is that OTOP gave our people the confidence, the impetus to bring out the creativity that had been latent for so long, and it gave hope to the marginalized like the rebel returnees and the indigenous folks who found a meaningful existence in the SPIN (Subcontracting Partners for Innovation Program). OTOP became an instrument
to propagate products that were environment-friendly and green. Out of the need to substitute products that caused harm to people and the surroundings, emerged the engineered bamboo that is taking the place of hardwoods and lumber in the making of furniture and other wooden accessories. There too are the bayong (native bag) and banig (sleeping mat) industries that are producing items from materials sourced locally like pandan, ticog, abaca, water hyacinth, buri, and sabutan. The bayong is meant to replace plastic as the biodegradable and eco-friendly material to be used by millions of people while the banig industry is reviving the art of weaving, still thought of by the young generation as a losing proposition since it pays little for so much man-hours in producing a single mat manually. But not for long if the DTI, DSWD, DOST, could have its way.
Within the five-year period, industries that addressed the wellness of people were encouraged to expand like the production of coco sap sugar that has a low glycemic index (LGI) of 35, giving people with sugar blood problems (diabetics and others) to live a normal life; there is also the cultivation and propagation of the virgin coconut oil that has been known to cleanse the body of impurities, thereby giving the sickly a new leash on life; the production of noodles made of calabasa, malunggay (moringa), carrots, and other vegetables, making everyday food palatable for certain sectors like children and the sickly who need the sustenance. OTOP was able to put into good use materials, and vegetables and fruits that would have just been thrown away if not for the technology introduced by OTOP partner government intuitions, like
the Department of Science and Technology. Tiny lumber pieces which are chips from the wood industry in Region 2 made its way into floor tiles in new modern designs and other wood products like candleholders, wall decors, and the like while surplus fruit produce from other regions were made into fruit sparklers/fruit wines and purees. All these were made possible through the interventions done by the DTI: trainings, product design, packaging and labeling, costing, market matching, promotion. Exposure in fairs, and in international and local exhibits enhanced the value and pricing of OTOP products that helped in increasing sales here and abroad, all these made possible through the untiring efforts and commitment of the people from the Department of Trade and Industry and its partner agencies.
CAR
Everybody loves Cordillera

Everybody loves going to the Cordillera for its yearlong cool weather, unique topography, and products. One is never disappointed when in the Cordillerathere is always something for everyone, the reason why visitors keep coming, and coming back. Micro, small, and medium enterprises from Abra, Benguet, Ifugao, Mt. Province, Kalinga, Apayao, and Baguio City have been attending the workshops, seminars, and participating in DTIs OTOP fairs for the past years and these had resulted in improved designs and packaging/labeling, and marketing which led further to added orders and increased income. Known for its furniture, meat products, giftwares, unusual flowers and plants, souvenir items, and many more, several products have been added to its list of come-ons: muscovado sugar, veggie noodles, bamboocraft, woven items made from recycled materials, and its gourmet coffee - its coffee beans made more unique since it came from the droppings of the civet cat. White, refined sugar is out, muscovado sugar is in and a muscovado processing center has been erected in Abra funded by the Japanese embassy at $81,911. Health conscious people round the world will be opting for other than white sugar and muscovado fits the bill of providing this need. Meanwhile, in Ifugao, a total of 1, 392 household farmers are engaged in coffee production and had established links with the Good Shepherd, the Katutubo sa Airport, and the Tanging Yaman foundation and others, thus ensuring a stable outlet and income for the coffee growers. Banas Caf in Sagada is another grower and supplier of this coffee with a unique and singular taste hence the premium price it commands. Aside from the usual products Cordillera is known for, comes another product produced under SPIN or Subcontracting Partners for Innovation program where trainings in weaving are given. SPIN, which originally benefited rebel returnees, had come to benefit persons with disabilities (PWDs) and the indigenous peoples. In CAR, in 2011, four trainings were given on the art of weaving: advance bag making skills training, fashion accessories using beads, novelty making using recycled paper, and how to make paper coils and filigrees using recycled papers. Last year, of the total number of regions to participate in the National OTOP fair at SM Megamall, CAR had the second largest sales of P7.62 million which is 17 percent of total sales. It speaks well of the tenacity and the resourcefulness of these mountain people.
Region 1
Region 2
More than just a historical place

Travelers, visitors, tourists, and passers through Region 1 will find it hard to resist not only the charms of Ilocos Regions centuries-old churches and houses, its cobblestone streets that evoke the Spanish regime, or its unpolluted beaches but also its products that defines the people of the region. Region 1 is popular for its agri-products like garlic and onion, its unique empanada, its famed longganiza, its kakanins, and many more, but through the Commodity of Convergence, which is crucial in the selection of the products representative of the regions, a batch of products have been chosen as Region 1s OTOPs the comfortable abel, the crunchy cornick, the small head bangus, its definable sweet mangoes, its rice wine or basi, the processed meats, its sturdy and well-designed furniture, and lately, honey. These, it was rationalized, are the products that have great potentials identifiable as Region 1s. These too are the products that have been crafted by the Ilocanos and will be given the needed push by government that will generate employment and more income. As the regions OTOPs, they get the strong support and special attention of the Regional Development Council whose is to see to the economic development of the region. Where needed, the OTOPs are promoted and refined and developed to eventually become export products too. These OTOPs have become more recognized as the representative products of Region 1 through the continuous presentation and promotion in trade fairs. The Department of Trade and Industry, as the main promoter of OTOP, is backed up by a number of government agencies like the Department of Science and Technology, Department of Tourism, Department of Agrarian Reform through needed manpower, while funding comes from the local government unit. In tandem with trade fairs are the continuous trainings in skills development, market development/promotion, productivity and technology development, entrepreneurial development, capability enhancement, product packaging and labeling, and organizational development. For instance, in product packaging, honey now comes in sachet packets for easier handling, more convenience when in transit rather than in bottles. There too is the support of government in linking up with the particular branch in a foreign country that would facilitate the entry of Philippine products, in this instance the entry of bangus in other Asian countries, in Australia, the United Arab Emirates, Saudi Arabia, and in Europe. From 2006 to 2010, Region 1s OTOPs have generated export sales of $9.199 million, domestic sales of P623.975 million, generated 8, 214 jobs, induced a total of P310.885 million of investments, developed 646 micro, small and medium enterprises, created 167 market outlets, and developed 10 pasalubong centers. With the way things are taking off, it would not be long for all these figures doubling or even tripling in the near future, bent as government and the Ilocanos are in making sure that these OTOPs become familiar items both here and abroad.
Finding a sure footing above the rest

wines too, the selection of fruits and vegetables were narrowed down to several the yakon, ube or yam, dragon fruit, guyabano or soursop, rattan, bignay (a local berry), citrus, and rice wine or the explosive basi. For milder palates, there are the fruit purees and for the health conscious, food supplements. Labeling and packaging are important factors in selling products and the DTI had called upon experts to draw up a number of designs for Region 2s OTOPs. Today, Region 2 sparklers, purees, and health supplements come in attractive, hard-to-resist packages. Benefiting from labeling and packaging are dairy products like the regions signature product the irresistible and tasty pastillas made from cows milk, leche flan, banana chips, and milk jelly. These come in handy single portions that suits almost everyone from the student who wants his baon, to the employee who brings her lunch to work, to mom who now can stock a number of these packs without danger of it going limp or stale. Last year, 2011, OTOPs generated 2,000 jobs; totaled P323.53 million in domestic sales; doubled investments that were P56 million the previous year to swell to P128.09 million in 2011. Cagayans entrepreneurs rose to the occasion to upgrade their knowledge in the technical, operational and managerial aspects in running a business here and abroad, and under the guidance of the DTI and other stakeholders, 442 SMEs were assisted while 121 were developed. For last year, 50 trainings were undertaken to harness and hone skills of Cagayanons; all these, in the name of gaining a footing above others in the OTOP program.
Perhaps, in relation to other regions, Region 2 or Cagayan Valley, is among the least explored or known areas in the country. Cagayanons are hopeful that it would not be for long the cocoon is about to break open, and among the breakers to make this possible is the One Town, One Product program. The regions vibrant wood industry has left bits and pieces of wood in its wake. Now what to do with these millions of pieces is a poser left in the air for Cagayanons to solve. The Department of Trade and Industry lent a hand by providing the needed trainings SMEs and participants were taught sophisticated modern floor tile designs which were added to the locals list of traditional, predictable designs, thereby widening the possibility of reaching out to a new group of clientele. Another value added touch to this industry is that designs could be personalized. A big plus side is, the wood bits could be had for free or for a song; there is no need to cut trees to make wood tiles. Bigger wood scraps from highly valuable hardwood are being given new life as candleholders, jewelry boxes, fruit trays, wall decors, dividers, and others. These and other wood-based products will soon find their way to newly bought homes of a burgeoning population nationwide. On the food sector, the region has been producing a whole range of fruits and vegetables, which, at some point, inevitably result in a surplus of produce. To staunch wastage, the entrepreneurs were taught how to ferment these fruits and vegetables and process the liquid to become sparkling wines. To represent the region, since a number of regions have their own sparkling

sweet potatoes, these are being bolstered by new products which the region can develop, supply, and sustain. The added value of the new products is that the target is not merely to encourage sales, but that these new products will encourage the hiring of the unemployed and help lift the lives of the poor. Today, among the new products that Central Region is becoming known for are the engineered bamboo. The term engineered is a step taken to re-contour the bamboo from hollow tubes, bamboos are slatted, treated, milled, and laminated. Engineered bamboo is primarily used to make desks and chairs for millions of students in public schools. But it could also be used to make avant garde furniture and accessories. There are also the bags produced by an enterprising group who proceeded to continue what big business had abandoned the making of a variety of quality bags at affordable prices. The product became the adopted OTOP of Mariveles. Government interventions helped this OTOP through capabilitybuilding seminars, marketing, development of new designs, packaging and labeling. These products and more earned for Region 3 P116.135 million in incremental investments; P337.440 million in domestic sales; and $3.060 million in export sales in 2011. Whether an OTOP is already established or new, these are exposed in trade fairs both domestic and international like the annual National Trade Fair, Vigan City Trade Fair, OTOP National Expo, and such as a strategy in promotion. Last year, sales amounting to P17.987 million were generated from domestic fairs and $1.103 million from international fairs. Lantern, bag, fish, bamboo, footwear, jewelry, sweet potatoes and many more such a diverse and incongruous grouping of products, and yet through the efforts of national agencies like the DTI, DOST, DOLE, DA, TESDA, local government units, and lending agencies, these have been helping SMEs, the unemployed to earn income and break through barriers. Dreams do come true.
Region 3
Where great dreams are realized

Region 3, for now, seems to be where the action is there is Subic and Clark two of the more successful places in the country where international firms have decided to locate and operate their businesses. There is the world class NLEX, the SCTEX, two international airports, a deep harbor with all the modern facilities, and soon, a revived, expanded railway system. All means of transport dissect, converge, or fly in and out of the country via Central Luzon. There is no reason for an OTOP to fail in this bustling region where customers are in constant alert for new products. Great things are happening in Central Luzon. The challenge is to produce where there is a need (like engineered bamboos), or further develop products already at hand (like processed sea products). But first the know-how of established entrepreneurs and budding ones must be upgraded and enhanced. For year 2011, a Region 4A As the region abutting the Greater Manila Area, the development of Region 4A or CALABARZON was greatly anticipated since it shares major infrastructure with the capital city. It was not a disappointment: last year, despite the lack of funding and a hazy future for the OTOP program, the region managed to surpass several targets in terms of sales, investments, market matching, and creation of market outlets. Of the provinces, Laguna did well than its sister provinces in the region. For one, Laguna got $20.16 million in terms of export, or 142 percent of its target in 2011. Domestic sales total of 142 training programs were conducted that benefited 1,919 participants. The participants underwent a series of trainings on entrepreneurship, managerial, technical, quality and productivity and even values and behavioral. There were the usual skills training programs although specialization could be had for those that needed them; there were also the benchmarking missions. The provinces Bulacan, Pampanga, Tarlac, Bataan, Aurora, Nueva Ecija, and Zambales are forever known for its place in history. Today, its people are making history by the products and services it offers through the OTOP program. Although the region is traditionally known by the products of each province which are all sure winners Bulacan, jewelry; Aurora, hats; Pampanga, lanterns; Tarlac, crocheted items; Bataan, processed fish; Nueva Ecija, footwear; and Zambales,
The place to be
totaled P343 million surpassing the target by 114 percent. Also, in investments, the province was able to generate P51.06 million or 121 percent of the regions target of P42.27 million. Among the products that pushed the sales were footwear, long the traditional product of Laguna but assisted by the DTI to cater to international standards and selected as a Laguna OTOP. Theres also coffee, lambanog or cane wine, honey, fruit wines and banana chips. Despite lack of funds, the region was able to conduct a training on Quality Assurance, Manufacturing Standards and Accreditation through the DTI 4A-CESO partnership during the first quarter. This would assure the quality of products in the area. During the second quarter two major events were held the La Laguna Festival and the First Bulihan Festival where products woven from the material called buli like colorful hats, bags, mats, boxes, and other products were displayed; in both these events OTOP products were promoted Whereas on the third quarter, CALABARZON participated in the OTOP National Expo Fair held Sept 2011 wherein the region had the second largest number of participants with 27 SMEs; three of these SMEs were declared members of the Millionaires Club. The region was able to generate sales of P5.1 million, that made it to the top three regions. Region 4A was still able to assist 354 MSMEs which is 116 percent of the target despite short of funds and facilitated the market matching of 394 MSMEs or 164 percent of target. Also, 74 market outlets were reached as against the targeted 65. Scarce funding was not a hindrance in reaching and even surpassing their targets shows the dogged determination of the people behind the OTOP in CALABARZON.
Region 4B
A fledging no more
other regions, there are other products which the Region 4B is famous for, but like all other regions, the products of each region were culled and only the more representative products of the regions were selected as OTOPs in MIMAROPA. Since the concept of OTOP is basically to encourage the development of micro, small, and medium enterprises, it follows that OTOP is also meant to create jobs particularly in the countryside, easing unemployment problems and poverty. But first, the DTI had to make sure that all town products were of top quality and adhered to standards. These were achieved by giving incentives to the entrepreneurs through the Regional Integrated Product Development Assistance Program.
Region 4B has the distinction of being the only region that has predominantly island provinces as its composition MIndoro Occidental and Oriental, MArinduque, ROmblon, and PAlawan hence the abbreviated MIMAROPA. Now on its tenth year as a region, it is still considered a relatively new fledged region. At the onset, it was hard put to stabilize its own economy and even its signature individuality. Before long, however, the island provinces became known for its one products Mindoro Occidental has iodized salt; Mindoro Oriental has fresh and processed fruit; Marinduque has its loom-woven products; Romblon, its marble; and Palawan, its cashew. Like all
In 2011, the one products in MIMAROPA filled 1, 394 jobs; assisted 196 existing MSMEs and developed 31 new ones. By the 3rd quarter of 2011, Region 4B OTOPs raked in, in terms of domestic sales the amount of P64.272 million, and were able to get a total of P9.094 million in investments. For the third consecutive years in 2011, the OTOP products of Oriental Mindoro were the consistent winners for the Highest Sales for Food Category: in 2009 and 2010 during the OTOP Luzon Island Fair and on 2011 during the OTOP National Expo. The Department of Trade and Industry provides focused support programs like continuous trainings in practically all facets of business from trainings, to market development, to product packaging and labeling, to organizational development. Recently, Region 4B became
a beneficiary of Project Bayong or woven bag; the resuscitation of the bayong as an OTOP (shared by other provinces) was an offshoot of the need for a substitute for non-biodegradable plastic products. The substitutes should be biodegradable, sustainable, and made from indigenous materials. As a beneficiary, the regions MSMEs received trainings, seminars, briefings and activities on product development. A bonus OTOP, project bayong , as of the 3rd quarter of 2011, engendered P1, 181, 290 worth of investments, employed 292 people, totaled domestic sales in the amount of P1.186 million. The project was also able to assist 28 MSMEs and developed 15. Fledging as MIMAROPA is, it has consistently been showing that it is no pushover when it came to excelling in product development and in competitiveness.
Region 5
Bicol Region: Pili country +

Bicol is pili country; nowhere else in the Philippines has pili known to have come from other than Bicol. Just when Pinoys have been assured a steady supply of this marvelous nut, its very nutty and distinctive flavor seems to have titillated the taste buds of the Americans to the tune of $714,285 or a cool P30 million in income for 2012; all these for 5,500 kilograms of processed pili. Region V is also known for a lot of products, most of it agriproducts like crabs, bangus, sugarcane products, muscovado, abaca, and the by-products of water hyacinth and pandan the comebacking eco-friendly bayong. With todays green mentality, the search for more environment- friendly items has gone full throttle - even yesterdays trash has become todays cash. Many are cashing on in producing items from the water hyacinth, others from trash itself. Last year, the six trainings conducted in Albay produced 169 people with new skills in developing and weaving processed water hyacinth. In 2011, 16 new products were developed, 10 micro producers emerged, and seven barangays became involved in this livelihood. One of the highlights last year was the conduct of the Catandungan Fair 2011, which caught the imagination of buyers, visitors, and sellers alike that even an inclement weather couldnt dampen their enthusiasm. The three-day fair fetched a total of P430,000 with the crabs, giant bangus, and bayong as top sellers. The success of the event was brought about by several factors: the cooperation of the local government, several national government agencies, the private sector, and even the academe. The trainings also covered skills to do service like hilot or massage and skills in communication. The latter was actually conducted to assess and evaluate the potentials of 500 senior students from 12 schools in Legazpi in preparation of their readiness and capability to assist in ICT-enabled investors and locators. Tapped to do the assessment was Tholons, Intl, an international consulting firm. The resuscitation of the bayong as an environment friendly carry-all received a boost when Region V held a contest for the Best Bayong in three categories: fashion bag, utility bag, and school bag. Here, the creativity of the Bicolanos was tested and so enthused were the makers that the end products elicited Wows from an appreciative crowd. Despite the region being constantly battered by typhoons, these had not diffused the spirit of the Bicolanos as entrepreneurs.
Region 6
Where excellence comes naturally

It seems that theres no turning back the tide of progress of OTOPs in Western Visayas. In 2011 when a number of OTOPs from other provinces/ regions seemed to waver for lack of resources and uncertainty, not so with the OTOPs in Region 6 or Western Visayas. Reports show that with OTOPs, jobs continued to be created, investments made, and domestic and export sales went up. One of the OTOPs that made this possible is sugar, but not your everyday kind of sugar. Sugar cane production has always been big business in Western Visayas but today, there are discriminating consumers who had redirected their taste buds from the white, refined sugar to the more flavorful and healthy muscovado. How ironic that while decades ago the disparaging term poor mans sugar (since the affluent used only white sugar) referred to muscovado, today, it is helping the lives of poor men become better. The growing production of this type of sweetener attests to the hiring of more people in the countryside, the target beneficiaries of OTOP. Last year, P20 million loan from (Agricultural Competitiveness Enhancement Fund) ACEF was facilitated to boost the muscovado OTOP of Sigma, Capiz Other OTOPs that engendered skills honing, job opportunities, and income to people in Western Visayas are the production of natural textiles (pia, abaca, and pia silk), seafoods (crabs, oysters, shrimps), bamboo byproducts like toothpick and barbecue skewers, peanut, milk, and the unassuming vermicast organic fertilizer. As of last quarter of 2011, jobs generated numbered 3,093 against the target of 1,847 or an increase of 167%; in investments, P53.487 million was poured in indicating a 226% increase from an annual target of P23.628 million. For export sales, the jumped was an incredible 340%. While the target is only to generate US$4.547 million, OTOPs in Region 6 generated a total of US$15.4744 million. Domestic sales generated was P241.785 million or 168% increase against the target of P 143.93 million. OTOP is on top; more investment have been tapped, sales are going up, employment never drops and efforts address the gaps. OTOP in Region 6 will always be there .. as long as time shall last.
Region 7
Tindahang Pinoy: Haven for OTOPs

Buyers who attend OTOP fairs are often in a quandary where to buy the products they had seen, tasted, or pined for once the event is over. Well, clients need not fret over this dilemma any longer for a store had been established where all OTOP products manufactured nationwide will be on display and sold to the public. In Central Visayas where world-class furniture, food, and other products have been the result of Filipino creativity and resourcefulness, and shown to the clients will now have a permanent site for showcasing these products. The haven is called Tindahang Pinoy - such an unassuming nomenclature for high quality products - that opened in December 2011 at the Bridges Town Square in Mandaue City, Cebu. The Tindahan will carry products of various micro, small, and medium enterprises nationwide but the Cebu outlet will have majority (70 percent) of items on display sourced in Central Visayas while the rest (30 percent) will be coming from other regions. The two other stores will be sited in Clark for Luzon buyers and another in Davao for Mindanao buyers. If even locals, who are such notorious lovers of imported products, find OTOPs irresistible and worth buying, what more for foreign tourists and visitors who not only find the products beautiful, or tasty, or value for money, but also a steal because of its reasonable pricing. Tindahang Pinoy will not be situated in some obscure hole in the wall but will be easily accessible and visible to tourists and clientele since the DTI and the Department of Tourism will be aggressively promoting the venue. The Cebu Gifts, Toys and Housewares Foundation, Inc (Cebu-Gth), a non-stock, nonprofit organization of exporters who produce home accessories, housewares, decors, and furnishing will be managing the Tindahang Pinoy.

creative eye had expanded the usefulness of mats into a variety of items like slippers, place mats, and other decorative containers. Delza is now the proud entrepreneur behind Delzas Native Products. There too is the winning of the Most Innovative product for the Arado Sweet Delicacies Producers Association that comes in a very untraditional wrap. What can one say but go for it Eastern Visayas!
Region 8
Out of the doldrums, into the hub

Comprising the provinces of Biliran, Eastern Samar, Leyte, Northern Samar, Samar, and Southern Leyte, the OTOP may just be the instrument that will bring zest to an otherwise lethargic region. A heavily agricultural-based and-dependent region, its chosen OTOPs invariably are mostly taken from the land and sea succulent mussels, iron-fortified seaweeds, fermented oysters, coconut and derivatives like tuba (coco wine), gabi (yam) leaves soaked in coco cream known locally as pinangat, suman (sticky rice), and many more products being tested and refined; there are also the non-food products like woven products, bamboo, and abaca. The OTOP program has been generating a lot of good will in the province as evidenced by the growing number of small and medium enterprises (SMEs) attracted to be counted in last year, 26 OTOP trainings touched 647 SMEs against the targeted 397 or 163 percent were conducted. Topics ranged from technology transfer, formulation of strategic plans, product development, and EDTs. This positive sign is critical in sustaining the products the region is/will be known for. An example is the project on engineered bamboo. Now an accepted alternative as building material instead of hardwood and the usual lumber materials for construction, todays bamboo has been treated of bokbok or powder post beetle. That problem out of the way, the biggest cooperative in Southern Leyte was open to the idea of becoming the source of engineered bamboos. The coop is now producing bamboo ply, bamboo slats, bamboo lumber, and bamboo chips as wall or ceiling accents. In 2011, a total 1, 435 new jobs were generated against the target of 1,015 or an accomplishment of 141 percent. Of this, 722 were communitybased jobs while the 713 were home-based. Another unlikely OTOP is pinangat, made of gabi leaves and coconut milk, an everyday viand that the average Eastern Visayan would look at as common fare. But not so to the palate of a development facilitator from the DTI who saw huge potentials in it. Today, through modern technology that increased the shelf life of pinangat, new packaging and labeling, the food had become an instant hit here and abroad. Last year, OTOP products from Region 8 generated a total of P31.830 million in domestic sales against the targeted P25.075 million or an accomplishment of 127 percent. It also attracted investments worth P25.209 million against the targeted P21.25 million or a 119 percent accomplishment. These were channeled in particular to the regions processed foods, and to its gifts, decors, and house wares. There is no stopping the momentum of OTOP, not when efforts are being recognized and paying off like winning the Gawad Ginintuang Award for Delza Morales, whose
Region 9
Blessed by the sea

Region 9 reflects on the accomplishment of the region from 2006 2011 with regards to OTOP and asserts that it is one of the leading OTOP implementers in the country. Three of its popular OTOPs are seaweeds, bottled sardines, and rubber. The region has reason to brag, for the said period, it contributed total investments of P2.406 billion, export sales of $162 million, and domestic sales of P3.681 billion to the nations economy all through OTOP fairs, market matchings, and from OTOP Pasalubong Centers. Generating 5, 936 jobs in 2006, these leaped to 41, 548 jobs by October 2011.It does not get any better than that. Dipolog Citys bottled sardines have been on the scene even before the OTOP program was born but with the OTOP program, the Dipolog sardines flew aside from increased income, it received the Presidential Citation for Best Practice in Improving Productivity and Efficiency, the Model Provincial Cluster Award, Best Food Product, and the OTOP Special Cluster Award all attesting to its quality and integrity. Other MSMEs in the region received the Masigasig Award, the Ramon Magsaysay Award, and the Outstanding MSME Award. Its seaweed industry appeared to be rosy too. As the countrys third major seaweed-producing region that contributed 12 percent to the national production and 20 percent to Mindanao production, a Seaweed Industry Cluster Inter-Agency Task Force was created that focused on networking all the projects on production together with postproduction support and post harvest actvities, researches and environmental protection programs. With this it was able to assist 13, 716 seaweed farmers. For its thriving rubber industry, several skills and capability build-up trainings were able to improve greatly the nutritional condition and productivity of the trees ensuring its longevity for decades. The vibrant OTOP in Zamboanga continues to hold on to its products and the local DTI was able to help a total of 442 SMEs in terms of product designs, labelling, and packaging. Concentrating on several products have enabled the region to concentrate on the development, promotion, and marketing of these products. The Regions OTOPs, like all the other OTOPs spelled the difference for most of the beneficiaries, that in taking advantage of the OTOP and what it offered meant either going hungry or being successful.
Region 10 Of Northern Mindanaos provinces, three - Lanao del Norte, Misamis Occidental, and Misamis Oriental - abut the sea; Camiguin is a small island known for its succulent and sweet lanzones, pastel pastry, and tourist spots; while Bukidnon, is known for its cool weather, undulating green fields, and storm-free location; all are unique and easily identifiable. Northern Mindanao is all greenery and the coastal areas yield a wide array of seafoods. It is a piece of Eden this side of the world. It comes as no surprise that its OTOPs are as varied as its provinces and agri-based almost 70 percent of its OTOPs are in food. There are seaweeds and peanut from Lanao del Norte; shrimps and prawns, and suman from Misamis Occidental; organic rice and bananas from Bukidnon; coco sugar from Misamis Oriental; banana chips, and pastel from Camiguin. These had been joined by other products developed,
Discovering Eden
processed, packaged and labeled like dairy products, organic rice, coco fiber and coco briquettes, home style and living products, condiments and spices, and health and organic products. In 2011, at least for the first three quarters, the region got a total investment of P80.639 million, slightly higher (108 percent) than what it received the year previous but far exceeding the target for the year by 174 percent. These investments were placed in dairy stocks, organic rice, and bakery expansion projects for Bukidnon; coco fiber, abaca processing, and banana chips for Camiguin; coco-based, peanut, and abaca processing for Lanao del Norte; additional capital for the suman processing and aqua-based products for Misamis Occidental; and tourism activities for Misamis Oriental. Coco fiber and abaca processing are very bright prospects because these are natural fibers and the world is in need of all things natural in relation to climate change. Today, the world realizes that technology had developed materials very harmful to the ecological balance of the world, the effects of which we are reaping now. It will not take long for other countries to notice what these natural fibers can mitigate climate change, a phenomenon affecting all countries. Coco fiber/coir and abaca could be processed and help soil erosion and retard spill offs from waterways thus prevent flood surges and landslides. As natural products, these are also biodegradable. As for exports, the OTOPs generated a total of $20.804 million for the same period, a slight 34 percent increase for the same period in 2010 but 127 percent more than the target for 2011. The OTOP export producers were: coco briquettes of Mambajao, Camiguin; abaca for New Tech Pulp in Iligan City, Lanao del Norte; prawns and shrimps from Bonifacio, Misamis Occidental. At home, OTOPs generated a total of P157.150 million which was a disappointment since the target for the year was P264.545 million. The sales were sourced through international, national, and provincial fairs; business matching activities; through Pasalubong Centers and market outlets. However, the figures could still be improved for the last quarter with the long holiday and brisk sales due to the Christmas season. Like all OTOPs nationwide, jobs are generated; here in Region 10, a total of 1,276 hands as of third quarter last year were employed. This was short of the target which was 1,605. Seventy-seven or 978 of those employed were communitybased and 23 percent or 298 were home-based. The full potentials of Northern Mindano are awaiting to be discovered. In this paradise on earth, everything is possible.
Region 11 Low glycemic index 35 or LGI 35, its a medicinal phrase one will become familiar with in the coming days of a changing world. Its a phrase that one will be synonymous to products coming from Region 11, specifically from the farm of lawgrad turned gentleman farmer, Benjamin R. Lao. His farm in Barangay Eman, Bansalan, Davao del Sur is a living testament of all things natural, all things healthy, and all things sustainable in one grand slam. Aside from the highly coveted and pricey coco sugar, Lao also offers exciting and creative concoctions to give commercial and sugar- laden drinks a run for their money. Lao tantalizes with camote tops with coco syrup, lemon grass with coco sugar, and
Spring of wellness
passion fruit with coco sugar, coco chutney, coco chili sauce where one comes out healthier and energized; he also gifts his kababayans with ice cream made from creamy goats milk. Laos products are just one example why Region 11 is beating its chest in a show of macho pride. In a region blessed with rich soil and lush surroundings, the OTOPs were not hard to coax out from an industrious and disciplined people. Today, the other OTOPs are microwavable banana, banana flour as alternative to wheat flour, industrial grade flour used in making glue for plywood production, bioorganic and vermicast fertilizers, environment-friendly laundry powder and bar soaps, coco shell, abaca products like rope and centipede abaca, bamboo trays and bags, unsweetened banana chips, peanut rolls, and so on and so forth. These OTOPs would have gone the fate of products left to history if not for the full support of DTI in providing the venue for display, promotion and selling, product matching, skills training, and assisting in packaging and labeling. The healthy atmosphere wherein government local units, the private sector, and a persevering people worked together to achieve a common goal made for the huge difference that other OTOPs in other regions are finding hard to duplicate. The MSMEs are so confident in their OTOPs that when financing is needed, lending institutions are more than happy to accede. In 2011, a total of P40.973 million benefited 245 OTOP MSMEs, with majority of this amount channeled for working capital, expansion of factories,and marketing of products. The Tindahang Pinoy (TP) is where OTOPs are exclusively showcased; there are only three TPs nationwide. The one in Davao City is hardly a year old and yet the 13 OTOPs displayed have generated sales of P327,528.85 as of third quarter last year. Region 11 is definitely not only a favorite tourist site but it is also where one is assured of best products that care for ones health. With that assurance, need we say more?
Region 12
Flying High
Tinalo Cave could be a starting point. In general, OTOPs are labor intensive, eco-friendly, and need government interventions. Planned to last only for five years, clearly the program must go on since it is apparent that there is still so much to do, so much more to accomplish. In Region 12, the program was only able to tap the tip of its richness; further exploration will benefit a wider base. In 2011, the regions star OTOP, tuna, got a huge chunk of fresh funding particularly for the expansion of tuna companies like the Alliance Select Food International and the Eca Cold Storage Store Plus. In terms of exports, processed tuna generated as much as $39.61 million in sales. Other investments were channeled to Vissia Muscovado for processing the sugar at the cost of P2 million; and also for coffee beans and coffee processing, and for craft and tourism-related establishments. Domestic sales generated through fair participation (IFEX, NTF, OTOP Trade Fair, BIMP EAGA, local fairs and specialty fairs like the National Tuna Congress Exhibit) totaled P137. 34 million. Market matching, a crucial activity in any business proposition, gained for Region 12 long-term engagements and Manila dealerships for fresh and processed fruits, processed tuna, dried fish and muscovado linking processors with Davao, Cagayan and Manila-based institutional buyers, thereby ensuring job stability, financial security, and continuous skills enhancement. Despite the unpredictable peace and order situation in the area, life goes on for the people in SOCCSKSARGEN, their spirit unyielding and indomitable, flying high despite odds.
Region 13
The region with the unwieldy acronym is also known as the homebase of world boxing champion, Manny Pacquaio, a blockbuster of an OTOP if ever there was one. Although Region 12 teems with products, what with a land and people as prolific as the waters surrounding it, its peace and order remains as unwieldy as its acronym. Yet, even as government gingerly had to coax from the local government units, SMEs, and other sectors what products best to exemplify the region, it still was able to trim representative products to 50 OTOPs. From the seas, OTOPs are the ubiquitous tuna, bangsi or flying fish from Maitum, Sarangani, processed fish including anchovy from the coastal towns of Lebak, Kalamansig, and Palimbang and crabs from Cotabato City. From the land are muscovado out of sugarcane juice and coco sugar from coconut flowers; coffee including Arabica, Robusta, Excelsea, and, as of late, the local barako; recycled products like bags, Christmas decors, topiaries, dolls, slippers, folders, envelopes, and flowers out of pandan, nito vine, water hyacinth, and corn wastes; and fruits like calamansi extract, crunchy banana chips, and chewy dehydrated fruits. Not to forget is the latest health craze the healthy virgin coconut oil that is a product using the nonheat pressing system. Theres also the palm oil extracted from 9, 346 hectares of palm trees. One of these days, tourists and visitors will be making a bee line for the immense Tinalon Cave in Sultan Kudarat, a natural formation that just takes ones breath away. Almost everything about the natural grandeur of the region remains untouched, inaccessible, and unexplored and therefore unappreciated but the
Resurfacing from the past

CARAGA has the edge over some regions when it comes to historicity the first mass ever said in the Philippines was held in Agusan more than 500 years ago. A number of huge wooden boats called balanghais, from which the word barangay was derived, were unearthed here indicating trading had taken place along the banks of the Butuan River even before the Spaniards came. And archeological findings reveal much much more that CARAGA was a bustling trade center generations ago and traders from foreign lands dropped by periodically. The operant word is then; today, it seems that time has frozen in the CARAGA and OTOP may just be the great thawer. Fast forward 21st century, through effective interventions, convergence approach in implementing the OTOP program, and synergizing different efforts to help the MSMEs, the DTI was able to bring out some of CARAGAs OTOPs that have a competitive advantage. There is Marjeck canton and pancit miki developed by Esther Uy; kaong or palm sugar and its other derivatives like vinegar and sweet kaong gel; abaca, in particular Mercados Sudlanan Atbp, makers of quality, beautiful boxes; Ocean Bountys seafood galore like processed blue marlin, shredded dried squid, salted fish, and crab cocktails; and De Laras Agsamcrafts handcrafted blingblings made from vines; palm oil which is the regions banner product. The development of the palm oil as CARAGAs top product spelled the big difference in this laid back region; from 2005 to 2009, it generated investments worth P571.9 million and put food on the tables and in the stomachs to scores of the regions unemployed - a total of 21, 420 jobs were generated. A total of 21 memorandum of agreements were reached and 118 resolutions were passed between Region 13s LGUs and key agencies of government that assured the viability of the palm oil industry. The DTI assisted CARAGA in improving and upgrading the quality of its products that would retain its consistency, acceptability, and integrity. Still, 31 new MSMEs were developed and 119 were assisted in 2011. For the said period, domestic sales came close to P52 million generated from various trade fairs; investments reached P52.6 million while jobs generated totaled 1,650. CARAGA is involved in OTOPs flagship projects like the SPIN (Subcontracting Partners for Innovation) where the skills and know-how of weavers are upgraded and enhanced; the bayong and water hyacinth development project where alternative products were produced that would eventually eliminate the use of environmentally harmful products like plastics; and the pangasius development project where the fresh water catfish are being cultured as additional fare to Pinoy taste buds and which would be one of the countrys top export products in the immediate future. All bodes well for the people in CARAGA, the economic stirrings are positive and alive brought about by the one town one product project. Perhaps the once glorious days of the region could be brought back again, why not?
Vision: Visayas, the location of choice for competitive MSMEs. Mission: Facilitate the development and replication of sustainable models for improving the local business climate in the Visayas. Objective: Improvement of the framework conditions for private sector development in the Philippines, especially in the Visayas.
Since September 2003, the Private Sector Promotion Program (SMEDSEP) has been helping to improve the business and investment climate for Micro, Small and Medium enterprises (MSMEs) in the Visayas. Growth of MSMEs contributes to the countrys sustainable development by creating economic and social benefits while maintaining an ecologically sound development. Ninety-nine percent of business establishments in the Philippines are MSMEs. These small businesses are quite important in promoting economic development particularly in rural areas. By creating jobs, MSMEs have a significant potential to alleviate poverty.
To support the improvement of the countrys business and investment climate for MSMEs, the Republic of the Philippines and the Federal Republic of Germany have initiated a Technical Cooperation Project: The Private Sector Promotion Program (SMEDSEP). The program has generated very positive results. SMEDSEP contributed to improved responsiveness of policies and regulations to business needs in partner cities. Also, SMEDSEP supported the streamlining of business permit and licensing systems in 124 LGUs in the Visayas which reduced bureaucratic costs on average by four times the 20 percent target.
Investment for the Future

Myla Tudtod, the owner of Makimsa Boutique and MKS Trading, had a chance to avail of the First Agro Industrial Rural Banks (FAIRBank) lending program for small and medium enterprises. FAIRBank allows borrowers to render non-real estate assets as collateral and enables small and medium business owners to access loans legally and under fair conditions. For FAIRBank, loans such as Mylas represent an increase in their small and medium loan portfolio. For Myla, the loan means newer and better equipment and more inventory. She can better satisfy and increase her clientele. More than business gains, Myla sees in the loan the chance to improve the quality of life of her daughters for whose sake she set up the businesses. My daughters are
now all enrolled in good schools in Cebu, and I have set up a trust fund for them. My Investment is in their future, Myla said.
Surfing on the Wave of Economic Development

In Guiuan, a sleepy fourth class fishing town in Eastern Samar, Mayor Annaliza Kwan pursued economic development projects to improve her peoples lot. Her vision is to bring economic prosperity in Guiuan by developing its natural potential as an ecotourism haven and a surfing destination of choice. Thus, she searched for an approach that will give the projects coherence, wider participation and link to the towns development vision. She revealed that Local and Regional Economic Development (LRED) ended her search. LRED helped us greatly in identifying strategic economic projects, Mayor Kwan said. LRED pursued projects based on Guiuans natural endowments and social capacities. SMEDSEPs
Myla Tudtud in MAKIMSA Boutique. Her FAIRBank loan of one million enabled her to upgrade her equipment and increase profits
The Local and Regional Economic Development (LRED) Process
advisory support built local abilities in implementing, tracking, and sustaining LRED projects in: 1) tourism and investment promotion, 2) business registration procedure simplification, 3) private sector participation, and 4) livelihood association formation. To promote tourism and investment, a Pasalubong Center was set up to showcase and sell Guiuan made products, to provide tourist and investment information, and to make arrangements for travel and accommodation needs of tourists. The simplification of business registration in 2008 was greatly appreciated by business registration applicants. The new permit application with six steps (from 11) and three signatories (from nine) takes about three hours (from at least a week) to complete. Furthermore, business permits are personally
delivered to the entrepreneurs. The push for business sector participation founded Guiuan Integrated Micro Enterprises Association (GIMEA) in 2009. With 52 member enterprises from nine sectors, GIMEA lends the private sector a voice and offers marketing support to member enterprises. Together with the Guiuan local government, GIMEA comanages and cofunds the Pasalubong Center. Also, LRED organized a womens livelihood association and revitalized a fisherfolk association. The Tagporo Pagnamitan Taytay Barbo Womens Livelihood Association (TPTBWLA) was founded in March 2009. It has 77 members engaged in weaving and selling bariw mats. On the other hand, Cabadlungan Fisherfolk Association (CAFA) was reorganized into a multiple income generat-
ing project enterprise. In acknowledging the contribution of LRED, Mayor Kwan beamed to say, In 2009, Guiuan was named a second class municipality. The poverty incidence estimate now is down to about 25 percent.
Better Opportunities, Better Chances in Life

Her bout with epilepsy and being born from a poor family made Elma Lozanos growing up years extra challenging. But being the natural survivor that she is and with loving care from her parents especially her mother who is also a person with disability (PWD) like her, Elma courageously surmounted the odds that fate had seemed to have thrown her way. Thanks to the pioneering initiatives of the municipal
Alberto Gagabuta at work in the filling station of the CAFA Bahalina processing plant
The LRED approach provides economic opportunities for persons with disabilities like Elma, above
Guiuan Mayor, Annaliza Gonzales- Kwan
Mayor Rony Molina of San Jose de Buenavista, Antique
ADPO and CBRP under the leadership of Mayor Rony L. Molina, a staunch advocate of and champion for the improvement of the plight of the PWDs, Elma and her husband were able to attend seminars on entrepreneurship and were extended financial assistance which allowed them to pursue and expand their livelihood and entrepreneurial activities. Elmas inspiring life of triumph over disability gains a growing number of equally inspiring cases of fellow PWDs in proving the positive results of the LGUs comprehensive program for PWDs on both differently abled persons lives and the community at large The adoption and use of the Local and Regional Economic Development (LRED) approach by the local government unit (LGU) of San Jose de Buenavista,
Antique in 2008 proved to be a step in the right direction as it has bolstered among others the LGUs Program for the PWDs and the investment and business tax collection. Through the LGU financing program for micro entrepreneurs, over 35 market vendors have accessed microfinance loans since December 2009 enabling them to augment their funding needs for operation or expansion. Through a well-defined process of accessing and repaying loans coupled with credit counselling from non-government organization (NGO) partners to the borrowers, the program has thus achieved a 100 percent repayment rate. The program has also become self-sustaining in that it already funds the salaries of a hired loan repayment collector and bookkeeper.
LRED has definitely helped San Jose de Buenavista to significantly increase investment, business, employment, and tax revenues in our municipality. This is good for our continued advocacy and support for the PWDs towards a truly more inclusive development, said Mayor Molina. Through SMEDSEP and the LRED approach, new doors have been opened for micro, small and medium entrepreneurs. The assistance and support from these programs have helped reinforce MSMEs, which in turn provide continuous employment and steady income for various communities. This shows that the success of OTOP is the success of everyone.
About SMEDSEP
The Private Sector Promotion Program (SMEDSEP), a development cooperation project between the Republic of the Philippines and the Federal Republic of Germany, aims to improve the business and investment climate for micro, small and medium enterprises (MSMEs) in the Philippines, especially in the Visayas. SMEDSEP contributes to the efforts of the Philippine Government to improve the framework conditions for private sector development in the country. It is implemented in partnership with the Department of Trade and Industry (DTI) at national, regional and provincial levels and GIZ on behalf of the German Federal Ministry for Economic Cooperation and Development.
About GIZ
The Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH, is a federally owned enterprise that supports the German government in the field of international development cooperation. For more than 30 years now, GIZ has been cooperating with Philippine partners in strengthening the capacity of people and institutions to improve the lives of Filipinos in this generation and generations to come. Together we work to balance economic, social and ecological interests through multi-stakeholder dialogue, participation and collaboration.
Antonio Pueo Incorporada is the oldest chocolate factory in the Philippines. Since 1939, Antonio Pueo has dedicated itself to producing the finest quality chocolates, in the old colonial traditions. They make their chocolates using a centuries-old recipe and island grown chocolate beans. All their chocolate drinks, porridges, cakes
and pastries have the authentic taste of real Spanish chocolate because they keep all the cocoa butter still in tact to maintain this tradition of best quality and flavor.
By: Edmundo Cabral, Jr. & Stephanie Santos
In the Philippines, when the ber months (September to December) come, the weather is usually wet, cold and damp. And who would not want to snuggle up with someone you hold dear in this kind of weather? Naturally, we crave for that feeling of comfort and rejuvenation that we can get from the warmth of an embrace. That is why this season usually gives us Filipinos the opportunity to strengthen relationships with our family, loved ones and friends. This is also why Filipinos have been in love with chocolates ever since it had first arrived in the Philippines through the Manila-Acapulco Galleon Trade. Spanish style chocolates is painstakingly made with continued adherence to old world techniques and secret formulation that has been vital in the preservation of the wonderful taste and its peculiar character and potency. Not only does it give comforting warmth and is pleasurable to the palate, this beverage is indeed a wonderful and nutritious food which, in its pure form, is a quick energygiving food containing protein, fat, carbohydrates, calcium, phosphorus, iron, sodium, potassium, vitamin A, thiamine, riboflavin and niacin. In addition, according to Ms. Patricia Limpe, the general manager of Antonio Pueo Incorporada and a food scientist herself, contrary to popular belief, chocolates do not cause obesity or uncontrolled weight gain but is actually an antioxidant that helps clean the body of impurity and free radicals. It is actually the sugar that causes weight gain. She also said that from her researches at the Smithsonian Institute, cocoa is good for preventing tuberculosis, high and low blood pressures, stroke, and anemia.
LOOKING BACK
It was in 1939 when Seor Jose Ma. Pueo, the pioneer of the chocolate factory in the Philippines, decided to capitalize his knowledge and experience in the commercial production of chocolate from the Spanish friars. He set up his factory in the famous walled city of Intramuros. He also went through difficult times when the Japanese occupation saw the destruction of Manila and the factory was consumed by fire. He has even witnessed the pilferage of his belongings by the very firemen who had come to put out the fire.
Philippine Airlines (PAL) transatlantic flights started serving its instant Spanish chocolate drink a la taza, hot or cold, to its passengers on February 2006. To date, as it pursues to produce quality chocolates in the traditional way, Antonio Pueo Incorporada continues to receive citations and recognitions from both the government and the public sector. In July 2008, Antonio Pueo Incorporada also participated in the 3rd OTOP Island Fair at SM Megamall, Mandaluyong City. Because it is manufacturing food products that are healthy in nature, the company is recognized as supportive of the declared One Town, One Product (OTOP) of Quezon City and also recently adopted as the Regional OTOP of NCR, which is Health and Wellness. BIGGER AND BETTER As it gains recognition here and abroad, the demand for the chocolates of Antonio Pueo also grows. That also translates to job generation for the locality, not only to the direct workers of the company but to the cacao industry and complementary and related industries as well. Hence, the DTI, through the DTI-National Capital Region, is sensitive of Antonio Pueo Incorporadas and the other MSMEs needs in order to provide timely and effective assistance to them as they
contribute to poverty alleviation, economic recovery and nationbuilding efforts. Antonio Pueo Incorporada is committed in preserving the old traditions to ensure that the present generation will be able to enjoy the purest kind of chocolate that only they can manufacture. In this manner, they hope to preserve this wonderful tradition for future generations to come, not just for Filipinos, but of the whole world! So, these ber months, especially this Christmas (and maybe any day of the year), is the perfect time to take a sip of this healthy, rich and luscious chocolate drink by Antonio Pueo Incorporada. And if its good for you, you might as well share the experience to your friends and loved ones. Give Antonio Pueo products to them as gifts. It not only keeps you warm and healthy, it also gives you the opportunity to share the warmth and comfort that only love can give!
In 1959, the factory was transferred to San Francisco Del Monte, Quezon City where the chocolates quality was continuously improved. It even expanded its clientele to include exporters. Seor Pueo optimized the local production of cocoa as he worked closely with plantation owners and taught them how to select, grow, and process cacao beans to produce the ideal cocoa for chocolate manufacturing. This valuable assistance and information propelled the cacao industry to progress so fast. On August 16, 1991 the company was acquired by Macdouton Enterprises (Phils.), Inc., a world-class confectionery manufacturer, and a friend of the Pueos. They continued to manufacture the chocolate of Seor Pueo the same old way, with all the love and care that has become the pride and tradition of the Antonio Pueo Incorporada chocolates. Their research and development work is also continuing for the innovation of their product line to be more adaptive and responsive to modern times as they produce hot and cold versions of their chocolates. They also make sure that the
Filipino consumers get the chocolate of the highest quality while enjoying its nutritional value at the most affordable prices. MOVING FORWARD In 2002, Antonio Pueo Incorporada was given a chance to expand its access to the market. The Department of Trade and Industry (DTI) invited it to the National Trade Fair 2002 held at the Megatrade Halls of SM Megamall, EDSA, Mandaluyong City on March 13-17, 2002. From then on, Antonio Pueo has been a regular participant of DTI-assisted trade fairs and recipient of the Departments assistance. On May 12, 2006, DTIs Center for International Trade and Expo Missions (CITEM) has given Antonio Pueo Incorporada the Trendy Award 2006 for its Churros con Chocolate Mix, Double Chocolate Champorado, and Double Chocolate Oatmeal, in recognition of classic products made convenient and packaged for the world. Antonio Pueo Incorporada has invaded the skies when
Antonio Pueo Incorporada

Contact Person: Patricia C. Limpe 145 Kaingin Road, Quezon City Tel.: 361-8280
etween the high mountains of the Cordillera and the shores of Northern Philippines stretches a sea-bound mighty river. And along its bank nests a farm that is remarkably becoming a model for a rural-based center for food processing, productivity and best practices. Reflecting a typical east-meets-west encounter, the Pamora Farm, Inc., located 396 kilometers north of Manila in Brgy. Garreta, Pidigan, Abra of the Cordillera Administrative Region, is a FilipinoEuropean joint venture. The farm produces top quality French breed free-range chickens for meat & eggs production, organic vegetables, and tropical fruits such as carabao mangoes. It also doubles as a destination for ecological and agricultural tourism.
Free-Range Farming
erard Papillon, the president of this industrial farm, explains to visitors that free-range chickens are slow-growth chickens and are grown using the method of farming husbandry where the birds are permitted to roam freely instead of being contained in any manner. The farming principle, Papillon added, is to allow the chickens to as much freedom as possible to live out their instinctual behaviors
in a reasonably natural way. In short, the birds are not caged but are free to roam in a wider but controlled habitat. Free-range chicken has substantial increases in nutritional value particularly in omega-3 fatty acids and vitamin A, and has lesser fat compared to those raised in poultry farms. The farms website, www.pamorafarm. com, also shares that their free-range chickens are free of chemicals, antibiotics,
hormones and other growth stimulants that are usually harmful to people. In the year 2000, Pamora Farm started to raise freerange chicken as backyard farming in just 1,000-squaremeter land. With Papillon and Arestina Morados partnering in the production of organically grown chicken, the brand name PAMORA was derived from their last names. Their initial objective was to have their own source
of quality chicken, but their business venture started when relatives, friends of friends, including foreign residents in Manila, had tasted the Pamora free-range chicken and ordered. After having undergone several trainings on growing, raising and market development of quality chicken meat, Pamora Farm Inc. ventured into full operation and the companys production of dressed free-range chicken began
to soar in the local markets of Abra and Metro Manila in 2002. They had a capacity of 200 broilers for its niche market of class A and B. As a result of the increasing demand of Pamoras freerange chicken, the company opened its business to foreign investors as partners. Since then, the farm management took serious moves in its infrastructure development and their present monthly production reached several thousand of broilers and
chicken meat products in an expanded five-hectare property. Faced with an increasing market demand, Pamora Farm has fully integrated free-range chicken raising and growing, dressing and packaging for distribution as ready-to-cook and ready-toeat food. Aside from Pamoras free-range chicken meat production, the company is also producing and selling free-range chicken egg. It is also manufacturing the French traditional home-made pts. Different pt flavors (chicken liver pat, breast and liver pat, gizzard pat, liver and gizzard pat, breast pat, breast and gizzard pat) are being produced for consumers, both local and foreign.
Products
amora Farm had invested on the production process standardization to be able to achieve the quality that complies in both local and international market standards. Pamora is now considered as one of the leading brand in the freerange chicken sector and the only dressing plant in the Philippines that caters exclusively free-range chicken and uses the Air-Dry Chilling that is compliant to European Union standards. Pamora Farm products are available at high-end gourmet stores (Santis, Terry Selection, The Green Shop at BGC, and Bacchus World), supermarkets (Unimart, Rustans, SM Hypermarket and Alabang South Supermarket), hotels (Pan Pacific Hotel, Sofitel Philippine Plaza Hotel), restaurants and week-end markets in Manila. The company had attended various market encounters,
including DTI-organized trade fairs such as the Padaya: Trade & Tourism Expo 2011; the National OTOP Expo 2011 held at SM Megatrade Hall, SM Megamall, Mandaluyong City; and the International Food Expo (IFEX). Negotiations are now on going for possible export markets. The company is also a proud member of the Philippine Association of FreeRange Poultry Advocates, Inc. (PAFPAI) and the Organic Producers & Trades Association of the Philippines (OPTA).
Green Program
he company adopted green programs like tree planting for erosion control and mountain denudation; vermi-culture wherein degradable farm wastes are utilized and transformed into organic fertilizers; solid waste management using the 3-Rs (Reduce, Re-use and Recycle); and organic gardening. Among the organic vegetables that are available and planted regularly
Productivity Improvement
amora Farm believes that productivity is vital to business especially in terms of profitability, expansion, growth and jobs generation. To address this concern, Pamora Farm had applied for an Agricultural Competitiveness Enhancement Fund (ACEF) loan for the expansion, upgrading and modernization of the Poultry Dressing Plant (PDP) and facilities to increase productivity and cater to the growing market demand of quality freerange chicken products. The plant is now operational. Free-range chicken production, having a great market development with the increasing health conscious consumers, both at the local and export market, is a viable project for an agriculture province like Abra. With the right tools, such as the Poultry Dressing Plant already established through Pamora Farm, Abra has a great capability to lead in this production project.
are tomatoes, eggplant, string beans, ampalaya, lettuce, herbs, and spices such as basil, parsley, thyme, rosemarie, chili, oregano, lemon grass, ginger, onion, camias and tamarind. Fruits are also grown, including mango, papaya, banana, caimito, guava, blackberry, atis, carmay and other exotic fruits that can only be found in this northern province of the Philippines. Aside from that, among the interesting facets of Pamora Farm are the ecoagri tourism activities. Within
the farm itself, interesting agricultural and tourism adventure awaits visitors and guests. Surrounding Pamora farm is a wonderful countryside featuring the Abra River and the Cordillera mountains, where one can go trekking, camping, swimming, bamboo rafting, kayaking, fishing, horseback riding, carabao sledge riding and visiting different agricultural farms and tribal villages.
Awards / Recognition for Business Excellence

French Agriculture Award by French Ministry of Agriculture & Fisheries, Special Award for Best Meat Establishment 2009 Poultry Dressing Plant AA Category by NMIS-CAR, GawadSaka Award 2010 as Regional Winner for Outstanding Agriculture Entrepreneur Category by DA-CAR, Environmental Partner CY 2011 by DENRCAR for its Valuable Effort in Adopting Environmental Friendly Method of Poultry Raising, Agro-forestation and Biodiversity Conservation, and 2011 Productivity Olympics as a National Champion under the Micro Agribusiness Category. Awarding was done at Bayleaf Hotel, Intramuros, Manila on October 27, 2011.
There is a whole new meaning for the phrase busy as a bee as Filipino entrepreneurs begin to see the potentials of honey. Apiculture or beekeeping is now considered a profitable activity, especially in the countryside. It helps small farmers and other marginalized sectors by providing an additional source of income. According to statistics, the Philippines has been importing more than a billion dollars worth of honey and bee products since 1989. This shows a big demand for honeybee products in the local market. Honey is used in the Philippines as a health food. Pharmaceutical companies utilize it as a base for cough syrups and energy drinks. Pollen and royal jelly are components of energy pills and capsules. Bee products are also used as beautifying agents by cosmetics companies. Aside from the commercial opportunities they provide, the honeybees are environmentfriendly insects that enhance biodiversity. They are the main pollinators of mangroves, forest trees and other multi-purpose tree species. Bees are responsible for the seed formation of wild plants, fruit trees, vine and vegetables.
By: Amelia E. Galvez
La Union Province adopted honey as the Provincial One-Town-OneProduct (OTOP) in 2008 through Sangguniang Panlalawigan (SP) Resolution No. 062-2008. Even before that, the provincial government has already poured so much effort in developing the Apiculture Program in the province. The foremost reason for the decision to adopt honey as OTOP is the wide range of opportunities that the apiculture industry would bring to the marginalized sectors in the province. Apart from this, the National Apiculture Research, Training and Development Institute (NARTDI) at the Don Mariano Marcos Memorial State University (DMMMSU) in Sapilang, Bacnotan, La Union would be maximized. Created under Republic Act No. 9151, NARTDIs primary functions are to provide education and training, conduct researches and extend technologies on apiculture in the entire country. When the La Union Apiculture Program was launched in 2004 by then Gov. Victor F. Ortega, 42 beneficiaries underwent two
Basic Apiculture Training Courses and were provided beekeeping colonies and materials to jumpstart their livelihood projects. In 2005, these newly trained beekeepers were organized by the Office of the Provincial Agriculturist (OPAG) into the La Union Beekeepers Development Cooperative, Inc. (LUBDCO), which was granted a Php-200,000.00 working capital by the Provincial Government to sustain its beekeeping projects. In 2008, the Apiculture Expansion Program was implemented under the helm of Governor Manuel C. Ortega. The 3rd Basic Beekeeping Training and Queen Rearing Production was conducted to the LUBDCO with counterpart funding from 12 municipalities in La Union and DMMMSU-NARTDI to ensure steady, adequate and quality supply of honey. Through a MOA signed by DMMMSU, LUBDCO, Provincial Government of La Union (PGLU) and Congressman Victor F. Ortega, the construction of the La Union Apiculture Development and Processing Center was proposed in order to (1) complete the assistance provided; (2) ensure continuous, sustainable and hygienic production; and (3) systematize the processing of honey and other bee April 2012 OTOPreneur Magazine 39
of the OTOP program. The annual production of honey in the province averages 2.4 tons, and with the recent developments in terms of production products. A 3,500-squaremeter lot in Raois, Bacnotan was provided by DMMMSU for the project. Necessary processing and packaging equipment and supplies were purchased by the PGLU as well. The center, which is being utilized by LUBDCO for its processing activities, was inaugurated on Sep. 02, 2011. La Union, likewise, hosted the 5th and 8th National Beekeeping Convention and Symposium in 2006 and 2009, respectively, at DMMMSU in Sapilang, Bacnotan, La Union. Apiculture stakeholders in the government and private sector in the whole country mapped out strategies to further promote the apiculture industry in the Philippines and thresh out problems and issues that beset the industry. Through the Apiculture Program, the Province of La Union was accorded
At present, bee products are being marketed within the region pending the approval of the products bar code. When the bar code is ready, massive marketing activities shall be undertaken to introduce the products in supermarkets, malls and department stores. DTIs assistance in this project includes business plan preparation, seminars on strategic management, pricing and costing, good manufacturing practices and the development of appropriate and competitive packaging and labeling for the different product lines. DTI is also poised to help in the marketing and promotion of these products. It is also a possibility that the La Union Honeybee Center will be a major supplier of the raw material requirements of pharmaceutical, cosmetics and food companies. Surely, there really is money in honey.
the national distinction as the Luzon Island Winner of the National OTOP Awards under the Best OTOP Implementer Category in 2010. This award truly represents the Provincial Governments firm and steadfast goal of making the apiculture industry flourish in the province to create employment and provide additional income to the identified sector beneficiaries, which is the main idea
technologies and the newly installed processing and packaging equipment, the yield is envisioned to increase 10% annually. Aside from honey, other by-products which are being produced include bee pollen, bees wax, hand sanitizers, massage oils, honey and propolis soap. All of these products are sold in the honeybee center, which is in-charge of marketing and promotion.
LA UNION BEEKEEPERS DEVELOPMENT COOPERATIVE, INC. (LUBDCO) Engr. Orlando B. Balloguing c/o The Office of the Provincial Agriculturist (OPAG) La Union Provincial Capitol San Fernando City, La Union Tel. No. (072)700-0788 DARIA R. MINGARACAL Provincial Director Department of Trade and Industry La Union Provincial Office 2F Shania Tower, Quezon Ave. San Fernando City, La Union Tel. No. (072)700-0788 Email: dtilu@hotmail.com dtilaunion@gmail.com FLORANTE O. LEAL Regional Director Department of Trade and Industry Regional Office 1 4F Juanita Commercial Bldg. Quezon Ave., San Fernando City, La Union Tel. No. (072)700-1024 Email: dtireg1@yahoo.com
By: Zeny M. Quinto
The LGU of Peablanca started its journey towards economic growth in the 90s when it launched the Peablanca Integrated Program for Economic Enterprise (PIPEE). This program, which was one of the Top 20 Blazer Programs in the Philippines in the Galing Pook Awards in 1995, focuses on the maximum utilization of the places vast natural resources as a tool for priming the municipalitys economy while preserving its ecosystem. All projects of the municipality which are identified in the PIPEE were successfully implemented.
adopting the PIPEE concept to the OTOP to ensure the programs sustainability in the municipality. Her initial commitment was to use all available resources to provide needed facilities. LGU-Peablanca sought to implement the OTOP program using a holistic approach. Through OTOP, it endeavored to promote not only its products but also its services, culture and people.
Philippine eagle is found. Presently, Peablanca has active Small and Medium Enterprises (SMEs) that support the mandates of OTOP. Their projects include bamboo craft making, meat processing, miki making, banana chips making and t-shirt printing, among others. These projects, which provide strong support to the eco-tourism activities of the municipality, are funded by the LGU in partnership with the Department of Trade and Industry (DTI) and other government agencies and institutions. The products are sold during trade fairs and are made available in the pasalubong centers. These projects include the construction of a production center for the Kawayan ng Cabasan Association, an OTOP support SME in Brgy. Cabasan, for bamboo craft production. Likewise, a
Bamboo Seedlings Nursery has been established in the same barangay to ensure sustainability of the project. A Pasalubong Center, where the products of the OTOP SMEs are sold, had also been built in front of the Municipal Hall.
Support to the max

Mayor Taguinod has been very supportive of the programs, projects and activities relative to the OTOP of the municipality. The promise she saw in the OTOP program of the government has continually inspired her to respond quickly to the requirements of the program and implement them judiciously. Since 2007, LGU-Peablanca has regarded OTOP as priority project in its Municipal Annual Investment Plan. A Municipal Tourism Master Plan, which had been
Going for nature

Peablancas reputation as a premier eco-tourism destination and tourist capital of the Province of Cagayan made it easy to adopt ecotourism as its OTOP. The municipality is host to several famous caves, such as Callao Caves, Sierra Caves, San Carlos Caves and other virgin caves in the barangays, Basaw Lake, Blue Lagoon and Mt. Ceteceo where the
Sustainable and holistic approach

Seeing that the objectives of the One-Town-OneProduct (OTOP) Program of the National Government is in line with the vision of the LGU of Peablanca, Mayor Taguinod lost no time in
approved for a systematic implementation to make Peablanca a globally competitive tourism site, has been formulated. This Master Plan contains the overall description of the proposed tourism investments the municipality is pushing in order to achieve its long term vision. The LGU will develop four more eco-tourism zones in addition to the existing Callao Caves within the area. These are the CabasanBasaw Lake Eco-tourism Zone, Lagum Valley Hidden City Eco-tourism Zone, Mt. Ceteceo-Mt Hamut Adventure Eco-tourism Zone, and Camasi Commercial Center in the Pobalcion area. These projects promise to make significant contributions in the local economy and in the country at large in terms of foreign exchange generated from international tourists, jobs generation and tax revenues generation for the local government. It is also expected to have an important impact on the provincial and regional economic activity which would stimulate the growth of small- and mediumsized enterprises. Focused on establishing a supreme eco-tourism destination, the following eco-tourism trainings and seminars were also funded and implemented: Tourism Awareness, Tour Guiding, Home Stay, Banca Tourist Orientation and Operation
(Disaster Management) and Souvenir Items Making. Moreover, Lakbay-Aral activities have also been benchmarked. This endeavor provided a venue for LGUPeablanca to identify models on eco-tourism management, marketing and OTOP implementation, and adopt best practices of successful OTOP entrepreneurs. These activities include, among others, attendance in OTOP Regional and National Trade Fairs and in the International Food Expo (IFEX). Likewise, a Municipal Trade Fair is held in the annual founding anniversary celebration of the municipality. This fair, which is participated in by the 24 barangays of Peablanca, is where SMEs would promote and sell their products. A truly strong indication of the LGUs unwavering support to OTOP is Peablancas excellent performance in the provincial and regional trade fairs. Peablanca has been a consistent top grosser since 2008 in the Aggao nac Cagayan Trade Fair and a consistent winner in the Best Dressed Booth. It has also won in the same category in the 2008 Padday na Lima OTOP Fiesta Trade Fair. Other projects in support of OTOP include upgrading of infrastructures, such as roads and tourism facilities, as well as promotion and product
development. A project design and feasibility study for the Peablanca Garden Hotel and Convention Center has also been prepared. When this is realized, it would surely guarantee jobs for the residents of Peablanca. Indeed, anyone who sees the efforts and resources that the LGU of Peablanca are investing in their OTOP projects and the manner in which they implement the program would not hesitate to extend all assistances it needs with regard to the program. The vision of a progressive Peablanca and a better life for its people are in sight.
Mayor Marilyn Julia-Taguinod LGU - Peablanca, Peablanca, Cagayan Engr. Orlando B. Balloguing Tel. No. (076) 304-0399 E-mail: mayor_marilyn@yahoo.com Atty. Ma. Esperanza C. Baares Regional Director Department of Trade and Industry - R02 #11 Dalan na Pappabalo Regional Government Center
By: Nora M. Reclosado
Photos by: Wilfred Tristan L. Carbonell
t started when the city executives of Balanga, Bataan locked their sights on One Town, One Product (OTOP) as their priority
program to alleviate poverty and increase employment in the Provincial Capital. They
spent time and resources to conduct exhaustive studies to
determine and identify a specific product to which ready resources and local skills and talents can be harnessed for a competitive advantage.
Banking on its geographical advantage as one of the coastal areas of the province, the City Government of Balanga had identified fish processing as the most viable livelihood program that can ably compete in the local and global market. By the end of 2010, there were 83 fish processors that were manufacturing fish products. Three more have been added since then, bringing the total to 86 business players that are competitively venturing in the market. Fish processing in Sibacan, Pto. Rivas Ibaba and Tortugas are generally home-based and employ the traditional method of production. The long experience of the people in this kind of livelihood honed their skills and developed their methods to the point of excellence. Fish processing particularly refers to fish
smoking (tinapa), fish drying (tuyo and daeng) and fish paste (bagoong). Among the raw materials being processed are tunsoy, kapak, kabase, bangus, tilapia and alamang. This industry provides a steady source of income for families and entrepreneurs in the area.
Helping hand
The City Government of Balanga has been a key player in the success of the OTOP Program in their locality through consistent and deliberate assistance. Its main priority is the promotion of sustainable development. In support of the fish processing industry, the Balanga LGU has several initiatives, which include marketing, financing and training packages among others. Local fish product processors were assisted to develop their marketing strategies. Advertisement was achieved through the
use of different media, e.g. web-based promotion and trade fair exhibits. A list of OTOP Products can be accessed using the citys website (http://www. cityofbalanga.gov.ph/). Another milestone in marketing and promotion was achieved by the city government as it participated in the Trade Fair Exhibit in New Jersey, U.S.A. Dubbed as Philippine Fiesta, various products of the Philippines, including processed fish products of the city, was showcased. It helped greatly in promoting Balangas fine line-up of fish products. The local chief executive showed unparalleled support to the participating Micro, Small and Medium Enterprises (MSMEs) by providing them the means to participate in the said international trade fair. Because of this marketing strategy, negotiations with potential investors had been possible, opening markets to local manufacturers. Another effective way of promoting the citys best is the launching of the Tuyo Festival, the first ever celebration devoted to promote Balanga Dried Fish to the world. The activity was featured in the GMA morning show Unang Hirit on April 20, 2009. The city invested Php60,000
for the prizes alone. The citys OTOP is now the primary token of the city government given to all its visitors and guests who visits the city. Balangas tuyo, tinapa and other processed fish products have become the foremost pasalubong of Bataeos to their relatives, friends and family from here and abroad. To intensify the promotion of the product locally, refurbishments and improvement of the Processed Fish Section of the public market was done. This is expected to increase the consumers acceptance and product promotion in the market. The city government also considered the importance of a more conducive
site for wet market areas, thus, on-going renovations also took place to provide consumers easy access to processed fish products
and fresh commodities. The cost in renovations reached around Php8,000,000. Now, visitors can enjoy a clean public market, guaranteeing clean and quality products. Financing schemes that work were made accessible to MSMEs. Among the schemes available are the Agriculture Competitiveness Enhancement Fund (ACEF) and Livelihood Enhancement for Agricultural Development (LEAD) Fisheries.
one cavan of rice, a supply of coffee and sugar, cash incentives, uniforms, and camera to facilitate effective monitoring.
Establishment of Techno Pinoy

Fishermen and fish processors are greatly benefited by the establishment of Techno Pinoy. It enables them fast access to information and technology services through the information highway. These information are also readily accessible through print, audio, video, database and web-based formats.
area. It recognized the importance of having clean water shelters for marine animals that mainly contribute to the OTOP Program of the city. It is expected to result to maintaining adequate
Support Projects
The City Government also spearheaded various projects that would help their fish processing industry flourish.
Strengthening of the Bantay Dagat Task Force

The Bantay Dagat Task
Force was established to monitor, conduct surveillance and control the water areas under the citys jurisdiction. It is composed of volunteer fishermen from the concerned barangays. It is tasked to ensure the sustainability of industries dependent on its waters. The city government provided a motorized banca for patrolling the city waters. The volunteers were also provided three units of twoway radio communication to immediately respond to any unexpected situation,
Coastal Clean Up
The city government spearheaded the coastal clean-up of different strategic locations in the city coastal
Mayor Jose Enrique S. Garcia III of Balanga City, Bataan.
supply of marine species used as raw material for fish processing. To uphold this endeavor, the City Government of Balanga designated river cleaners in various river sites in the city
jurisdiction to maintain the cleanliness and protection of its coast and rivers.
Mangrove Reforestation Program

The Mangrove Reforestation Program has been the citys initiative to revive the mangrove and plant areas that has been largely depleted due to mans abuses and environmental factors.
Staff of DTI Bataan province headed by their Provincial Director, Yay P. Lasam
5S and Other Productivity Related Training

As part of the city governments commitment on the implementation of OTOP Program, specific funds have been set aside for the proper implementation and maintenance of the program, which includes trainings on 5S and other productivity related trainings.
Contact Information Yay P. Lasam Provincial Director 3F Criselda Marie Building Capitol Drive, Balanga, Bataan Telefax : (+6347) 237.3005/791.4221 E-mail : dtibat@pldtdsl.net dtibat@info.com.ph
Sitting idly at home didnt sit well with this stay-at-home mom. So, she got to work in her kitchen and concocted scented candles to start up her business. With relentless research and innovation, her simple concoction is now the buzz of the wellness industry as it uses the most surprising ingredient in the market for her wellness products: darak!
heryll Quintana joined the workforce at the tender age of 19, just right after earning her degree in Sociology at the University of the Philippines. Her impressive work profile includes teaching at Letran College and working for the World Wildlife Fund, USAID and Ateneo de Manila University in different capacities as training officer. However, due to a difficult pregnancy for her first baby, Sheryll had to stop working. It was difficult for her to stay at home and not earn her keeps. She started exploring things that she could do with her time and earn some money at the same time. In 2000, she established Kutitap, a manufacturing company producing aromatherapy products. She also just had her firstborn child then and Sheryll had to cope with both her challenges in motherhood and as a struggling entrepreneur as she tried to overcome distressing experiences peddling the products she concocted in her kitchen.
an appropriate workshop to increase production, especially since the products had reached the shelves of Macys in New York. The business expanded along with the expansion of her family. This reinforced her belief that motherhood would not be a hindrance to entrepreneurship. Instead, it served as motivation and a lighthouse towards success. Her alliance and cooperation with players in
2007 issue of the Sunday Inquirer. In April 2011, Kutitap was again featured as Oil from darak joins wellness products in the same publication.
SURVIVAL THREATS
By 2003, candle makers are a dime a dozen. This prompted candle makers to shift to producing other products, such as essential oils, massage oils and aromatherapy products. market, Sheryll opted to focus her sights on the local retail customers, where competition entails marketing creativity. By 2007, a lot of companies - major ones that have money for explosive marketing and distribution channels - were taking notice of the booming local wellness industry. As an entrepreneur, Sheryll didnt have either. But she has the heart of a lion to succeed and the Filipino ingenuity to rise above weaknesses. Though she had a list of regular spa clients to serve, she knew that sooner or later, the big corporations would take over her market share. In one of the product design and packaging assistance sessions led by the Department of Trade and Industry in coordination with the Department of Science and Technology, Sheryll was disheartened to be told that her product lineup was bordering on boring and outdated. She then decided that instead of coming up with new
Most of my family members, friends and former colleagues told me I was crazy to do those things, more so when I refused USAIDs offer to go back to work with them. I promised myself that I am going to prove to them that I could earn my keeps and be with my child, too, she added.
NOT SO EASY
She started making candles when there were only a few players in the industry and with limited supplies. The family registered the business with DTI Laguna and had been immediately assisted by the Department of Trade and Industrys Laguna Provincial Office. In 2002, about a year after startup, Kutitap made a debut in direct exporting as a result of its companys participation to the Southern Tagalog Regions Barakalan 2001 trade fair, where Sheryll met potential buyers. Sheryll has to set up
her industry led her to gain more technical knowledge in running her business. I learned the lessons from other entrepreneurs, which would prevent the rest of us from committing the same mistakes. In a span of 11 years, Kutitap products were featured in two of the largest television networks in New York. At home, Kutitap was seen as a full page feature, Exporter survives by tapping the local market, in the September
We were already in this business before the term wellness industry was coined by the spa industry for its advertising and promotion, Sheryll said. She ventured into retail as she set up a couple kiosks in malls. At the same time, she engaged in packaging for spas all over Laguna, Batangas, Tagaytay City, the Visayas, and Macau. Instead of repeating successes in the export
Homegrown Business Partners in the Countryside he
packaging for old products, She would come up with new products instead.
DARAK TO THE RESCUE

At that time, Sheryll used imported almond oil as base for the products, and was advised to develop products using virgin coconut oil (VCO). But she didnt want to develop products from VCO because it easily deteriorates and a lot of producers were already doing it. How can I expect to be a better competition when a lot of these kinds of products are out in the market and a lot of businesses have been doing this ahead of me? she asked. She plunged into researching for alternative oils that they can call their own, can be produced locally, truly health beneficial and has environmental significance. She stumbled upon darak. Darak or rice bran is the outer kernel of rice. It is a by-product in rice production that is normally fed to hogs, used as a fuel or thrown away as agricultural wastes. Kutitap was the first in the country to provide spa products made from rice bran. They named the brand Oryspa or Rice for the Spa. After almost two years of product development and market testing their five initial products ballooned to 26. This includes shampoo, conditioner, body scrubs, body creams, soaps, washes, mists, and their all 52 OTOPreneur Magazine April 2012
natural meditation balm. By summer of 2011, they came out with migraine soothing organic turmeric-based balm. They have registered Oryspa at the Intellectual Property Office upon DTIs advice. Oryspa can be bought at Kutitaps flagship outlet in SM City Calamba and through various distributors nationwide, some of which are Echostore, an organic store in Manila, and Organic Market at Salcedo Village in Makati. Several spa partners also use Oryspa body treatments, massage oils and blends in their service menu. Oryspa products have also reached Singapore and US markets through OFWs and visiting distributors. It is also visible online through multiply and facebook, their own website, www.oryspa.com (which is being upgraded), and through the marketing assistance of the Center for International Trade Expositions and Missions (CITEM) in its online directory.
Right now they are a candidate for DOSTs SETUP program assistance. Their top selling product is rice bran aromatherapy and chili oil, pain relieving meditation balm (which sells almost 50 tubs a day), anti-bacterial rice bran shampoo and conditioner. For institutional spa clients, the most sought after products are body scrubs, masks and lightening body polish. Their top selling service is spa product customization.
DOH licensing requirement. Right now, they can assist a would-be spa owner to start providing all natural quality products and excellent services, from business development to spa operation. Kutitap has posted an estimated 400% growth in new clients since 2009. They had shifted their product use to 100% natural and increased an average of 80% on their clients menu listing, and subsequently increased their revenue by 40-200%. They are focusing to increase their clients revenues so that their repeat orders come in short intervals and their deliveries more frequent. All of their product development and market testing are in house. To better ensure product quality, they have outsourced some of the products that they have yet to have expertise on. As part of their corporate social responsibility, Kutitap conducts livelihood training
programs on alternative sources of income hoping to empower stay-at-home moms. Globe and ABS-CBN even flew Sheryll to Dauis, Bohol in 2009 to give Community Based Enterprise training. Sheryll didnt purposively do this to market her company but, it was an inevitable effect of her endeavor. Right now Kutitap is providing training for mothers through CARD BANK CMDI program almost monthly. They also have partnership with CARDBANK Business Development Services. They provide small loans to some of their members as Oryspa distributors and they also source some of their raw material from their farmer members. Truly, Kutitap has come a long way from being a stay-at-home mothers simple concoctions to a formidable force in the local wellness industry through a womans ingenuity and that surprisingly useful rice bran.
KUTITAP SHINES
Recently, they have included some of the spa equipment and collaterals coupled with the trainings provided. They have relocated their office in Calamba, which houses Oryspa institutional products (bulk sizes), traded equipment for body massage and facial care, and ES Spa Solutions and Learning Center, which is their partner in providing learning sessions for therapists who are elevating their profession for
Contact Information: Marilou Quinco-Toledo Regional Director 3F Marcelita Building, National Highway, Barangay Real Calamba City, Laguna Phone : (+6349) 545.6169/545.7448/545.7570 Fax : (+6349) 545.7573 NERBAC-CALABRAZON: (+6349) 525.5607 E-mail: dti4a@yahoo.com
Faced with a failing business, Merlita Bolus decided to invest in her hobby of cooking native delicacies. Soon, she turned this hobby into a profitable business that not only caters to the needs of her customers but also listens to them to improve her products.
By: DTI Oriental Mindoro (Negosyo Tips Newsletter)
A noted industrialist once said that the best time to invest is when the economy is down. Why is that so? Because it is when confronted with difficulties that people start getting creative giving birth to new ideas, recreating old concepts to come up with new ones. Creativity is at its peak during periods of discomfort.
The Bolus family found rewarding opportunities from difficulties a few years ago. When money was tight, the bills were piling up and their main income stream was in
a long dry spell. It was during these difficult times that Merls Native Delicacies was born. Merlita Bolus RTW business took a deep plunge when competition
started closing in during the early years of 2000. With an unpromising sight of an oversaturated local RTW market, she helplessly watched her investments getting overran by high overhead costs, dismal sales turnover and recurring cash flow problems. Spending precious time and money on a flailing business that is unable to
Expo 2011, and regional events, such as Marinduque Expo 2011 and SME Negosyo Caravan. The sales outcomes of their participation in trade fairs were overwhelming. The business transformation was never easy for Merl. Her home kitchen has never been the same and her family members have never been busier. During its early stages, Merls Native Delicacies produces an average of 30,000 pieces of rice cakes packed with coco jam in sachets per month. Presently employing twenty-nine (29) workers, the firms capacity has more than quadrupled with a significant volume being marketed in metro retail outlets outside the province on a regular basis. Merls continuous effort to innovate and explore ways to offer new product concepts is inspiring. The firm is now set up to introduce its own delicacy variations of vacuumpacked biko and maja blanca. In no time, Merl has discovered the right mix of ingredients: Doing what she does best = Passion Being open to new ideas = Eagerness to learn new concepts Continual improvement = Innovation Her own creative process is the right ingredient mix. To an observer, going from
meet her family needs, Merl decided to rethink her options and shifted her focus to an asset that was already with her all along her hobby. With the support of her family, Merl tested her first batch of suman sa lihiya (rice cake) from a kilo of glutinous rice she bought from the public market. She tried peddling them to friends and relatives. Soon enough, orders started pouring in. The unanticipated market response prompted Merl to consider placing serious investments on her hobby. She then named her newly found business Merls Native Delicacies. Taking customer feedback into consideration, Merls Native Delicacies
Creativity consists largely of rearranging what we know in order to find out what we do not know. Hence, to think creatively, we must be able to look afresh at what we normally take for granted. -- George Kneller
sought ways to continuously improve its product. She availed the Department of Science and Technology (DOST) grant assistance for label design and execution, supported with innovation systems and technical assistance package under the DOST Small Enterprise Technology Upgrading Program (SETUP). The quality and visual appeal of Merls suman sa lihiya were enhanced and its market reach gradually expanded. Aside from DOST, the Department of Trade and Industry (DTI) helped facilitate Merls Native Delicacies entry to national market events. Since 2010, it has been a consistent seller/participant on national events, such as National Trade Fair 2011, Food Expo, 10th Agraryo Trade Fair and OTOP National
RTW to native delicacies is a seemingly unconnected path. But it is the entrepreneur who really sees the opportunities and only the entrepreneur can connect the dots.
Suman sa Lihiya.
Glutinous rice is soaked in water for several hours before putting in a portion
of lye water and wrapping each serving in soft banana leaves. The wrapped mixture is the boiled until glutinous rice is done. This is best eaten either with sugar or latik (coconut milk residue). Some people like brushing cooking oil on the banana leaves before placing in the glutinous rice mixture.
Try not to run the leaves over the fire to make it more flexible. It will most likely to crack. Instead, gently wash it with warm water. http://panlasangpinoy.com/2010/12/27/suman--sa-lihiya/
Contact Informations: Merls Native Delicacies Merlita Bolus, Owner/Manager Ubas St., Brgy. Lalud Calapan City, Or. Mindoro Tel. No.: (043) 286.7684 E-mail Address: c/o DTIOr. Mindoro dtiorminro4b@yahoo.com Facebook: http://www.facebook.com/pages/Merls--Native-Delicacies/154862154527376 DTI-Oriental Mindoro Provincial Office PD Oscar M. Agbay, CESO VI Provincial Capitol Complex, Brgy. Camilmil, Calapan City, Oriental Mindoro TeleFax: (043) 286.7093 E-mail Address: dtiorminro4b@yahoo.com / oagbay@yahoo.com DTI-IVB (MIMAROPA) Regional Office RC Joel B. Valera, CESO IV 5F Oppen Bldg., 349 Sen. Gil Puyat Ave. Makati City Tel. No.: (02) 890.1712 TeleFax: (02) 899.0900 E-mail Address: dti_mimaropa@yahoo.com
By: Achilles V. Alberto I
Quilting is certainly an art - an art, a craft, a hobby, a pastime, an outlet for creativity, even a form of therapy. But in todays world it is also an industry - an industry that recently drew people together to see whats new, whats exciting and whats going on in the world of quilting.
ight years ago, quilting and appliqu craft started to gain a foothold in the Province of Catanduanes, an island paradise in the Pacific, lying east of Bicol mainland that offers much more than just exploring its unspoiled beaches or enjoying surfing at Puraran Beach located at the north. The quilting industry was introduced in the Catanduanes by Mark Teocson and his wife Pura, who both hailed from the island province but are now established businessmen in Hawaii, USA. Quilts are made from patches of fabric sewn together using tiny stitches to make finished products such as bags, bed spreads, wall hangs, wallets, etc. They
DTI First Lady Rowena Domingo (3rd from left) pose with the owner of Nizzach Crafts Ma. Louella M. Vargas (1st from left) during the opening ceremony of OKB-Gayon Bikol 2011. With them are (from right) Catanduanes Provincial Director Ireneo Panti, Catanduanes Lone Representative Cesar V. Sarmiento and DTI-5 Regional Director Jocelyn L.B. Blanco.
really labor-intensive. On the average, a microlevel company would require 70 workers. Initially, there were three companies that took interest in the craft after attending the demo conducted by the Teocsons. Nizzach Craft, Nicon Enterprises and RBM Collection started their production, with the Teocsons providing the ready market in Hawaii. The pioneering entrepreneurs realized that, as start-ups, their production skills were not as efficient as they would want it to be. They produced good products are themed using appliqus or patterned patches of fabrics. The designs applied in Catanduanes originated from the Teocsons and thus appeal to the Hawaiian market. Quilting and appliqu can be done in two ways by hand or by machine. Our local entrepreneurs do it using the hand sewn method making the industry but they were not effective overall. Knowing this, in 2003 they decided to embark on a study tour in Pampanga and Bulacan, where quilting and appliqu is an established export industry.
From August to September 2011, a series of trainings from the DTI-SPIN funds, were conducted in six barangays in Virac to boost production of quilted merchandise. The series of trainings gave the industry an additional 159 new workers, 55 of them immediately got job orders after the training.
Quilting and appliqu in Catanduanes is now a Php-5M industry, providing significant income to some communities in the province. The company who engaged in another business is being lured back with the good prospects of quilting. The owners interest is
Since then, the quilting industry flourished on its own, penetrating more barangays and even enticing students. Although there were periods of trial and uncertainty, as when one company owner decided to venture into another enterprise setting aside her quilting business, the industry persisted.
work for the families involved a mother may start working on a product which may be continued by her children and sometimes finished by the husband depending on their availability and skill. The job then helps to glue the family closer together, contributing to better community building. In her visit to
Today, there are five companies producing quilted products in Catanduanes, employing around 350 workers, mostly in Virac and some in Bato and Baras. How the products are made is somewhat interesting. The jobs are contracted out to households, making it a community-based industry with a designated coordinator. It becomes a collaborative
Catanduanes in June 2011, Joy Blanco, Regional Director for the Department of Trade and Industry (DTI) Region 5, was able to observe how the small quilting industry in the province is making an impact in the communities. She saw its real potential and immediately agreed to provide funding for skills training in quilting and appliqu.
Contact Information: building up and hopefully she would be back as one of the local quilting industrys capitalists in 2012. Quilting is a passion, she said, and the stirring didnt leave her heart. The chance to help a lot of families, including students who persevere in their studies, give the best satisfaction of all. April 2012 OTOPreneur Magazine 61 Jocelyn LB. Blanco Regional Director 3F Capitol Annex Building Old Albay District, Legaspi City Telefax : (+6352) 480.5749/480.5717 to 21 E-mail : JocelynBlanco@dti.gov.ph r05@dti.gov.ph
At 55 years old, Zaldy has been tilling his land, spanning two and a half hectares, since he was nine, back when his grandparents still owned it. On any good day, he and his wife would start their day with breakfast produced from their farm and native coffee before heading out to do the days work. Albeit small, the farm sprawls over rolling hills and is host to a myriad of vegetation that sustains Zaldys family. He has quite the collection of plants: corn, banana, sweet potato, tomato, pepper and gabi. He markets these in San Carlos City proper during harvest time. The latest cash crop that had him smiling is peanuts, recently planted on half a hectare plot of land and growing quite nicely under sunny weather with occasional rain. Granting that the weather cooperates for the whole one hundred days or so that the nuts need to mature before harvest and that rodents stay away from his land, Zaldy will be smiling with the assurance of cash in exchange for his yield. The farmer is very shy and his voice is rather soft, but he reveals his humorous side with small talk and kooky smile. Its a nutty life, he jokes in Cebuano. Clearly, theres nothing nuts about the nut trade in the genteel San Carlos City. Zaldys partnership with this Local Government Unit (LGU) is proof that it is bent on making their peanut industry a growing and sustainable trade.
Sustainability
One of their standout programs is a farm livelihood program where farmers can obtain peanut seeds enough to initially cover half a hectare of land. The City Livelihood and Development Office (CLDO), which handles OTOP, came up with this project because one of the problems encountered by the food manufacturers was the lack of supply of peanuts in the city and nearby areas. But it is not just any peanut; their variety has a distinct flavor that keeps customers coming back for more. The peanuts are endemic to the area a native variety, says Raymund Gepitulan, officer-in-charge of the CLDO. They grow in other parts of the province as well, he adds, but, they grow really well here. This variety is called Imelda but the CLDO also has plans to try other varieties that would grow well and produce the same quality or better products for food processors. Our program is simple. We provide assistance to farmers by providing inputs comprised of raw material and some fertilizer, good for half a hectare. These inputs are equivalent to 1 bag containing 12.5 gantas (approximately 2.25 kilos). Come harvest time, yield is expected at 20-24 bags and the farmers pay back double the inputs provided to them, which is again provided to other farmers to replicate and expand the project, Mr. Gepitulan explains their LGU-Farmer partnership. The farmers who participate in this scheme sign a memorandum of agreement, adds Mr. Gepitulan,It is one way of reinforcing productivity. According to OTOP Crop Technician Germegildo Panonsillo, a total of 50 hectares have been planted, benefitting 20 farmers, since they started this project in 2010. These areas cover 18 barangays and the project is still growing. Zaldy is one of the beneficiaries of this program. He expects to harvest in the first quarter of 2012, and he prays for a good yield.
Proper planning
San Carlos is the farthest city north of Negros Occidental province in the Visayas. The citys center is bustling with economic activity. It boasts of agricultural land for plant and animal produce; a generous coastline for marine resources such prawn, milkfish, tuna, crabs, shell and fish, among others; and cottage industries from Micro, Small and Medium Enterprises (MSMEs) with growth areas in gifts, toys and houseware, plastic recyclables, pottery, food manufacturing and native products. Success of the citys growth over the years can be attributed to the careful planning of its local officials. Developed in 1994, the 20-year Master Development Plan (MDP), which was prepared by both public and private sectors, has seen the leadership of three different mayors. Despite past political differences, the MDP was never scrapped. Mayor Gerardo Valmayor, Jr. says it best. The MDP is the citys blueprint. It is reviewed and updated periodically but its core is for the best interest of the people. Whats good about San Carlos is that there is cooperation among different sectors and offices. He added that support of the majority was earned because they saw transparency and continuity from good programs that were initiated from way back. As a result, San Carlos has been receiving accolades and awards from various bodies, both local and international. The most recent and prestigious is when the city was hailed as the 2nd Most Livable City in the World for 2011 by the International Awards for Livable Communities.
Another farm in Brgy. Rizal, run by Antonieco and Editha Purisima, is on its second contract. The couple started with the program in December 2010 and has already made two harvests. From their first harvest, they earned a gross income of P16,000. The succeeding harvest brought in similar amount and they are expecting their next harvest in early 2012. This assistance from San Carlos was really a big help. We are able to supplement our income, says Editha. The couple has four children, one in college and another in high school. Other income is derived from other cash crops and their little store where they also serve native coffee. These efforts on the sustainability of the peanut industry have created a winwin situation for the farmers and food manufacturers. Mariel Avenir, CLDO project coordinator, takes charge marketing and product development. Because supply of the raw material is being addressed, the food manufacturers are now able to concentrate more on manufacturing. With the
assistance of government agencies, such as DTI, the City of San Carlos helps these manufacturers in their participation to trade fairs and market matching, technical assistance, trainings and seminars and improvement of their products. The MSMEs are mostly home-based, so the LGU helps develop the entrepreneurs in all aspects. Even something as simple as teaching them the importance of calling cards is already a step towards their growth, Ms. Avenir added.
to their raw material, Mr. Gepitulan says. Through this project, additional livelihood has been created and the farmers themselves are interested in learning how to process the peanuts so they too can do some manufacturing. The City of San Carlos intends to include related skills trainings, consultancy and other assistance to their beneficiaries. Their partnership with government agencies such as the DTI, DOST, and DA is crucial. Already, the agriculture and food industry, with special
attention to peanut products, are included as one of the priority sectors of the San Carlos Micro, Small and Medium Enterprise Development Council (MSMEDC). San Carlos City has realized that focus should not only be on their processors but also on the availability of raw material. Appropriate moves were taken to address this through the creation of their planting project. Because of these initiatives, OTOP has benefitted some 20 peanut farmers and 20 MSMEs engaged in peanut food manufacturing. It provided livelihood and employment, direct or otherwise. Since the OTOP of San Carlos is widely known, well supported and well funded, there is no reason why the peanut trade cannot grow.
Brighter future
The future looks very promising for the peanut industry in San Carlos City. There are many challenges brought about by the planting project of OTOP, such as weather and pests, but this is our commitment to ensure that our food producers have access
Contact Information: Negros Occidental Rebecca M. Rascon Provincial Director 3F Prudential Life Building San Juan & Luzurriaga Sts., Bacolod City, Negros Occidental Phone : (+6334) 708.2423 Telefax : (+6334) 433.0250 E-mail : ro6.negrosoccidental@dti.gov.ph dti-negocc@yahoo.com dti_neg@globelines.com.ph
By Blair Panong and Jojisilia Villamor
foreign product design consultant enthused as she discovered how young buri leaf sheaths can be made into a wide variety of saleable products. From hats, bags, wallets to placemats, table runners and home decorations, raffia appears to be among the versatile fibers in the Philippines. Raffia weaving is one of the oldest crafts in Bohol. Local crafters choose raffia not only because it is abundant in the area --- raffia fibers are soft, durable, and can be easily integrated with other indigenous fibers and recyclable materials in the weaving process. It can take the place of cord, fabric, ribbon, paper and stuffing. Often, it is invaluable to outdoor projects because it doesnt shrink with moisture, yet is pliable enough to weave. Among major sources of raffia items in Bohol is Tubigon, a quiet town 54 kilometers from the capital City of Tagbilaran. At the onset, raffia weaving wasnt lucrative nor a sustained means of income in Tubigon until the DTI organized the Tubigon Loomweavers Association in 1990 which later became the Tubigon Loomweavers Multi-purpose Cooperative (TLMPC). Through the years, DTI nurtured the group by enhancing basic skills and providing product development trainings so they may be able to effectively sell their wares in trade fairs and other marketing activities. TLMPC chair Victoria Mara recounts that DTI also trained members to do the 5 Habits of Good Housekeeping or 5S to enhance productivity and improve
work place organization and work processes. Mara reveals that, after the DTI skills trainings and product development initiatives, the cooperative was able to produce good quality rolls of fabrics, placemats, table runners, throw pillows, tea mats and coasters and sell these to retailers and exporters based in Cebu and Metro Manila. To meet demand and delivery commitments, we subcontract jobs to at least 150 home based weavers, Mara add. Today, each TLMPC member earns an average of P 12,000 a month from the business. We started with practically no skills but, thanks to DTI, we learned about 2 4 harness weaving and designing of products and natural dyeing techniques which helped our business, says Mara. Now, we have greater variety in our designs and more orders from exporters. In order to increase production capacity, TLMPC decided to set-up a common service facility complete with a working shed that can accommodate 25 units of 2 to 4 harness handlooms. When raffia woven items were declared by the Local Government Unit (LGU as the One Town, One Product (OTOP) of the municipality of Tubigon, it opened numerous opportunities for the cooperative in the form of more financial support, training assistance, promotional efforts from government and private organizations. Not so long ago, the Philippine-Australia Community Assistance Program (PACAP,) granted P4.7 M to the TLMPC for project upscaling to cover the cost of a new production center housing 40 handlooms, delivery truck, trainings,
marketing support and community organization and strengthening. In 2009, Manila based NGO called Fundacion Santiago affirmed its support for the TLMPC by facilitating the donation to them of 31 industrial sewing and cutting machines from the late Ms. Ditos LobregatBalaguer, a philanthropist and businesswoman. Fundacion Santiago previously donated P 200,000.00 to the loomweavers to purchase, fabricate and install new handlooms. This year, the Department of Budget and Management through the Tubigon Local Government Unit provided Php 3 Million for the expansion of the weaving facility and for the construction of a raffia bag
making center and Php 1 Million for their working capital requirements. Strategic upgrading of the loomweaving industry is currently implemented with the Value Chain Approach through Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ), a technical assistance agency of the German government.
Since 2010, TLMPC leads the implementation of the Materials Research and Development (R & D) program of the DTI and the European Chamber of Commerce of the Philippines (ECCP) with financial support from the Foundation for Sustainable Societies, Inc. In the Materials R & D, local weavers are given the
opportunity to develop new weaving patterns and new indigenous designs by mixing fiber with recycled materials such as newspapers, cotton, plastic straw, seaweed, and plastic twine. Phase 2 of the project with ECCP is the training development program for second liners which is financially supported by the
Foundation for Sustainable Societies, Inc. Young weavers are trained in the rudiments of loomweaving and in the appreciation of the right industry values. They are then hired by the TLMPC after the training. With the improving financial status of TLMPC, the cooperative is now able to provide members with grocery and rice loans and enroll their members with the PhilHealth and SSS. Moreover, the income derived from weaving has allowed the weavers to send their children to college and buy basic necessities for their families. Fate continues to be kind to these hard-working weavers of Tubigon. In 2011, TLMPC bagged
the first regional Small Medium Enterprise (SME) Star Elite Award in Central Visayas. The regional SME Star Elite Search under the SME Star Program was launched by DTI to acknowledge the contributions of small business establishments to the economic growth of the nation. TLMPCs accomplishments prove that the raffia weaving industry still has much promise to vault Tubigon and its weavers to a better tomorrow. And as long as TLMPC weavers are open to new design trends, they will continue to benefit from the growing demand for raffia-based, eco-friendly products in the local and international markets.
Contact Information: Tubigon Loomweavers Multi-purpose Cooperative Pinayagan Norte, Tubigon, Bohol Tel. No.: 038-5089081 www.tubigonloom.com Bohol Ma. Elena C. Arbon Provincial Director 2F FCB Building, CPG Ave. Tagbilaran City, Bohol Phone : (+6338) 501.8828 Fax : (+6338) 411.3533 E-mail :dtibohol@yahoo.com
Best OTOP Implementer Region VIII
by Lemuel R. Montes
sually, the tail should be the end. But for Eastern Visayas, the tail maybe at the front. Look at the town of Guiuan in the province of Eastern Samar. It is located at the southernmost tip of the third largest island (Samar) in the Philippine archipelago. It can be likened to a tail surrounded by water because it is bounded by the Pacific Ocean, the Surigao Strait, and the Leyte Gulf.
ut this tail town has been at the forefront in the regions development efforts, most especially in the ecotourism sector. A cold fact of this was being the Best OTOP implementer in the entire region because of its initiatives in tourism development. The ingredients are more or less present for this town. It is rich in history, endowed with beautiful natural resources, and a culture that tourists would surely appreciate.
History touches as early as 1521 when Ferdinand Magellan discovered the Philippines. It is believed that the Spaniards first landed on the island of Homonhon in Guiuan. And the town played an important role during the Second World War as it served as one of the Alliances bases. Whats left of the American occupation nowadays are just concrete slabs which once served as the foundations of a vast supply depot, and an air strip which now serves as the towns own airport.
Besides the rich historical background, Guiuan boasts of various scenic spots. The Church of the Immaculate Conception with its complex of fort and convento is a wonder how they were able to preserve such magnificent heritage. It is It is decorated with shells and corals which is one of a kind.
ut it is the white sand beaches perfect for swimming and surfing that makes Guiuan genuinely captivating. It is where Calicoan Island lays, also known as the Surfers Paradise, and is worked out to be the top tourist destination of the region. With its rugged landscape, tropical forests, wonderful lagoons, breathtaking white beaches, crystal clearwater, and caves, Calicoan is a must see for the nature lover, adventurous traveler, deep-sea fisherman, and intrepid surfer. It is not surprising to be tagged as a Gateway to Pacific Adventure. With all these presented by nature, what lacked are the infrastructure and support services to boost tourism.
area. The business permits and licensing system was also streamlined by the Guiuan LGU and likewise formulated the Guiuan Tourism Master Plan. Further support was the construction of the Pasalubong Center that also houses the Municipal Investment, Environment & Tourism Office (MIETO) ably manned by Aurora delos Reyes. The local products in Guiuan have started to be developed also due to the convergence of assistance to its micro, small and medium enterprises. An example is the Department of Labor and Employment (DOLE) grant of P500,000.00 through LGU Guiuan for the construction of tuba (coconut wine) processing center. The tuba concocted by the OTOPassisted Cabadlungan Fisherfolks Association (CAFA) in Calicoan Island is known as one of the best in the region during the regionwide Oktubafest, bringing awards and school building project to the town. Several MSMEs also had the chance to market their products in fairs. Private companies have worked with the Guiuan LGU to ensure sustainable development too. If one goes to Calicoan Island, most notable are the Surf Camp and the Calicoan Villas. A new terminal is also
constructed aside from the municipal and privately owned ports to improve access being part of the strategy to make the quiet town into a jewel of a community being propelled by good business practices. These efforts did not go unnoticed as the DILG awarded LGU Guiuan with the prestigious Seal of Good Housekeeping. Guiuan is dubbed The Rising of an Eastern Star. Indeed, the future looks bright for this town located at the tip of the Samar island. A town bounded by three vast bodies of waters. It may look like a tail of the big Samar Island, but it is actually in front, in front of tourism, in front of regional development, and in front of the places where you may opt if in Eastern Visayas.
Guian town Mayor, Annaliza GonzalesKwan with tourists.
his is where the Guiuan LGU comes in by implementing the One Town One Product (OTOP) program. Participation and convergence of interventions by the government and private sector made it possible for the town to accomplish notable projects. It includes the rehabilitation of the Guiuan Airport and the water system to Calicoan Island, the aggressive tourism promotional activities leading to investments in the tourism
industry, and the backward and forward linkaging of souvenir and processed food producers. Listen to the town mayor, Annaliza Gonzales-Kwan, and you would easily feel how the people of Guiuan appreciate God for providing them these treasures, and how they intend to develop it for everyones enjoyment. Mayor Kwan and the local officials enacted the Guiuan Investment Incentives Code to give fiscal and nonfiscal incentives to new and expanding enterprises, including the OTOP MSMEs engaging business in the
Contact Information: Cynthia R. Nierras Regional Director Government Center, Pawing, Palo, Leyte Phone : (053) 323.4163/323.5680/323.3035 Fax : 323.4082 E-mail : dtiregion8@yahoo.com R08@dti.gov.ph
Livestock, the One Town One Product (OTOP) of the Municipality of Dumingag in Zamboanga del Sur, are raised in an agricultural setting by quality-conscious farmers. Once generally raised by farmers for subsistence, it is now a source of profit among many.
Background
The Selection Process. The choice of livestock as the OTOP of Dumingag came about as a result of various processes and activities that were initiated by the Department of Trade and Industry (DTI) Zamboanga del Sur Provincial Office. Equipped with profiles on various local products, as well as the structure of the industries which correspondingly produce the products, DTI consulted with Municipal Mayor Nacianceno Pacalioga Jr. for the re-affirmed and final selection of the OTOP for Dumingag. On Feb. 20, 2009, the Mayor re-affirmed livestock as their OTOP. Executive Order No. 5 series of 2009, dated Feb. 12, 2009, then created the Municipal OTOP Team, which is composed of local government officials and representatives of the national government agencies such as DTI, Department of Agriculture (DA), Department of Science and Technology (DOST), Department of Labor and Employment (DOLE) and the Technical Education and Skills Development Authority (TESDA). The support of the municipal government became more prominent when the Municipal OTOP Team devised an action planning to implement OTOP in the municipality.
Stakeholders. Livestock is chosen as OTOP because of the existence of stakeholders classified into three strong groups, namely: 44 barangay farmers associations; the Dumingag Federation of Barangay Farmers Association; and 34 local livestock traders. Support Structure. Strong support to the livestock industry is mainly provided by the local government of Dumingag. Further, voluntary support is also provided by various concerned government and non-government organizations. Support from the government comes from various agencies such as the DTI, DA, DENR, DOST, DOLE, TESDA, among others. On the other hand, a strong support also comes from the non-government organizations operating within the municipality.
Gaps
For the purpose of achieving the development goal of economically uplifting the lives of the farmers, an industry gap analysis was conducted by the LGU thru the Municipal OTOP Team. Identified industry gaps include: (1) workforce/education; (2) research/technology; (3) demand; (4) global developments; (5) capital; (6) infrastructure; (7) regulatory framework; (8) marketing; and (9) environment. Gaps in workforce and education include the lack of trained manpower in farm technology and management, post harvest technique, and quality and productivity control. Meanwhile, research and technology gaps include the need
for propagation of hybrid stocks, the need to develop means to eliminate or eradicate livestock diseases, and the need to identify emerging markets and establish marketing arrangements. Demand gaps, on the other hand, include the need to identify new buyers and determine their respective requirements. Gaps on global developments include the need to enhance product quality to qualify for global standards. Capital gaps include the need to identify possible sources of financial assistance and possible access to the financing programs which can appropriately support the industry. Infrastructures, such as livestock houses, bagsakan centers , transport facilities, farm to market roads, among others, are
also needed. These will improve livestock quality and eventually increase price. Industry linkages will address the need to delineate the various roles and responsibilities of the industry stakeholders. Finally, marketing gaps in clude the need to provide investors with updated and timely product market information, the need to promote livestock products in a pro-active and sustained manner, and the need to brand the Dumingag livestock.
Interventions
At the local level, Dumingag pooled its resources and poured efforts and further develop the livestock industry in general, and the stakeholders and the individual farmers in particular. Inter-
ventions came in various forms including: (1) Institutional Development Assistance; (2) Quality and Productivity Improvement Assistance through trainings; (3) Market Linkage Development; and (4) Financial Assistance The industry gaps that were identified were addressed thru the employ of various activities correspondingly described in each of the following: Workforce and Education. The LGU funded three batches of 2-day trainings on poultry management and entrepreneurship. With the intention of massive development, the LGU conducted a series of 44 barangay level trainings, benefiting 7,259 farmers. Research and Technology. With the support of the Department of Agriculture, the LGU
conducted a research to identify appropriate breeds of chicken and other livestock. The Jolohano breed of chicken, which becomes harvestable at an average of 1-kg per head in a 3-month period, was adopted.
the barangays and construction/ rehabilitation of farm to market roads, were given priority. Industry Linkages. This includes the delineation of the various roles and responsibilities
of the industry stakeholders. Marketing. This includes the provision of updated and timely product market information to farmers, and the promotion of Dumingag livestock and chicken.
Demand
The LGU encouraged and promoted the development of livestock processing plants that will boost domestic demands. Capital. To augment the local funds, the LGU sought funding support from the private sector and NGOs. Successfully, the LGU got financial assistance from the ASSISSI Foundation in the amount of P15M. Infrastructure. Physical infrastructures, such as the construction of 15 poultry houses in Contact Information: Zamboanga del Sur Ma. Socorro Malate-Atay Provincial Director NACIDA Building, Capitol Complex, Pagadian City, Zamboanga del Sur Phone : (+6362) 214.2516 Fax : (+6362) 925.0560 E-mail : dtizds@yahoo.com R09.Zamboanga.Sur@dti.gov.ph
By: Famelah Racquel D. Villanueva and Mr. Junar B. Merla

he local government units (LGU) dedication to the implementation One Town, One Product (OTOP) tops the factors that spell success of the program. Other factors include reliable raw material supply, rich local culture and tradition, local talent and skills, ready market for products and services, aggressive core of producers, and convergence of government agencies. Since its initial stage in 2004 and despite a change in administration, the local government of the City of Valencia never faltered to commit resources and take concrete action towards the attainment of the objectives of the OTOP program. Thus, LGU-Valencia has been adjudged by the Department of Trade and Industry (DTI) as the Most Supportive LGU or Best OTOP Implementer in Region 10, in recognition of the funds invested and projects implemented, the extent of the local chief executives management and leadership in the program, linkages facilitated for support from external sources, and the designation of a focal person to oversee the implementation of the program. Organic rice, including its by-products, was adopted as the citys OTOP by former Mayor Jose M. Galario Jr. due the places good quality soil and favorable climate. He then initiated the passing of an ordinance positioning Valencia City as the Organic Rice Capital of the Philippines and organizing the Task Force Organic. Organic rice as OTOP is one of the rare programs in the city that was passed from
the previous administration to its successor. It penetrated political divide. Mayor Leandro Jose H. Catarata continued the OTOP program of the former mayor because he believed that organic rice is healthier and sustainable. He issued an executive order for the creation of an OTOP Task Force and installation of a branding system. He likewise designated an OTOP coordinator and hired personnel to assist the said focal person. The local government provided input subsidy and post harvest facilities for their organic rice farmers. They also launched the Integrated RiceDuck Farming System in partnership with the Philippine Agrarian Reform Foundation on National Development in support of the Sustainable Agriculture and Organic Rice Development Program of the city. The local government believed that the excretion of the mallards provide natural fertilization as it increases the nitrogen content of the soil. The OTOP Micro, Small and Medium Enterprises
(MSMEs) of Valencia City produce various organic rice-based products such as barquirice, pulvorice, cookies, chicharice, pop rice, tart, and roasted rice. LGU-Valencia, in partnership with DTI and the Department of Science and Technology (DOST), assisted MSMEs in terms of product development, label design, product nutritional facts analysis, and food processing equipment acquisition. Assistance was also provided to enhance their entrepreneurial and managerial skills through seminars and local study missions. Since 2008, the city provided a product display area to promote OTOP products during
the celebration of their charter day annually. It also allocated funds to support their MSMEs on their participation in various trade fairs in Malaybalay, Cagayan de Oro City, and Manila. The Sangguniang Panlungsod also passed a resolution for the establishment of a pasalubong center for their OTOP products and an ordinance for the installation of their branding system to support the marketing efforts of their MSMEs.
Under the leadership of Mayor Catarata, the local government of Valencia, together with the collaborative efforts of the concerned national agencies, has displayed optimum enthusiasm, efficiently established sound technical network by providing financial and technical resources supporting the OTOP Program, enhanced employment, and promoted entrepreneurship and information and education advocacy for socioeconomic development. The local government of Valencia recognizes that despite their full support for the effective implementation of the OTOP Program, a lot of things have yet to be done. With this, the local chief executive vowed to regularly consult with the OTOP stakeholders in order to come up with interventions that can ensure OTOPs sustainability.
Contact Information: Linda O. Boniao Regional Director- DTI Region 10 NACIDA Building, Corrales St. cor. A. Luna St. 9000 Cagayan de Oro City Phone : (+638822) 729.291/722.278 Telefax : (+638822) 726.354 E-mail : dti.r10@gmail.com r10@dti.gov.ph
By: Nancy G. Echaves
towards the OTOP Program was clearly expressed during the conduct of the Provincial OTOP Congress spearheaded by DTI on Sep. 17, 2009. He noted that local products of Lanao del Norte had remarkably improved through the interventions under the OTOP Program of
Lanao del Norte Governor, Mohamad Khalid Q. Dimapoto (3rd from left) at a trade fair organized by DTI-Region 10.
the present administration. He even challenged DTI to bring the OTOP products of Lanao de Norte to the global market. He stressed that the province of Lanao del Norte had so much raw materials that can be processed into products needed by the export market.
n the Province of Lanao del Norte, Gov. Mohamad Khalid Q. Dimaporo made imprints of OTOP and integrated it under the Provincial Development and Physical Framework Plan as one of his developmental programs. A three-point
agenda was adopted by the young governor towards the attainment of this vision to include social development, rural livelihood and infrastructure development of the province. The governors commitment of support
for his solid support to the association, Lanao del Norte Producers Association (LANORPA) President and OTOP entrepreneur Violeta Gingco said. Enhancement of product packaging and labeling is Gov. Dimaporos main concern, hence a private designer is hired to conceptualize a design for secondary packaging depicting product branding of the province.
Beneficiaries of the OTOP program from the Municipality of Matungao presents a banig product to Lanao del Norte Governor Mohamad Khalid Q. Dimaporo.
Several initiatives had been implemented to motivate every municipality to come up with their respective OTOPs. Among Gov. Dimaporos best practices is the institutionalization of OTOP Day as the main highlight of Araw ng Lanao del Norte Celebration. Intended to showcase the best OTOP products of every municipality in the province and give due recognition to the OTOP entrepreneurs, OTOP Day was launched during the 50th Araw ng Lanao del Norte in 2009. And for three succeeding years, OTOP Day has become the center piece and the most awaited part of the festivity.
Major activities were lined-up to put emphasis on the OTOP program one of which is to feature the OTOP product in every municipal booth. Booth contests were held and municipalities which displayed a unique presentation of OTOP were given monetary rewards. To further showcase the products of the province, the governor personally appeared as guest at the Pamahaw Espesyal, a local television program of ABS-CBN, presenting with pride the OTOP of Lanao del Norte. Noteworthy to mention also are the marketing initiatives done through strengthening the Rural Improvement Club Provincial OTOP
Pasalubong Center and the participation of the OTOP entrepreneurs in the Kahimunan Regional Trade Fair and the OTOP Mindanao Island Fair. This is a good opportunity for us to introduce and market our products to the regional market. We are thankful to Gov. Khalid Dimaporo
Developing OTOP in Lanao del Norte is a long journey but moving on is faster with the unyielding support of Gov. Dimaporo. His efforts have inspired the municipal mayors and the MSMEs to equally double their efforts and commitment to make their OTOP products excel in the local and soon find a niche in the international market.
Governor Dimaporo as guest of honor during the Lanao del Norte OTOP fair.
One Product (OTOP) Program of the national government. Known as the home of the world famous mining site knew that the mining industry is not forever and time will come when all the precious minerals will be depleted. activities were pursued from small-scale mining. of Diwalwal, Monkayos vision is forthcoming. As tons of gold have been extracted from Diwalwal, local leaders
the municipality to bring their place to prominence and limelight even before the introduction of the One Town,
he Local Government of Monkayo envisioned the development of the jewelry industry in
Moreover, the LGU recognized the economic impact, especially on employment and investments, if value-adding
industry in Monkayo as an alternative livelihood from small-scale mining. To pursue this direction, the LGU They, in turn, would serve as trainers for jewelry making in Monkayo.
Thus, under the leadership of the late Mayor Joel Brillantes, local officials thought of developing the jewelry
funded the training of two local jewelry makers at the Cottage Industry Training Center (CITC) in Marikina.
By: Patick Kim B. Evangelio & Marie Anne J. How
Photos By: Jenny Grace Molbog-Mendoza
Mayor Brillantes did not deter the LGUs vision. Upon the assumption of Mayor Manuel Brillantes Jr. in 2004, he immedijewelry making industry. When the OTOP initiative was introduced, LGU-Monkayo identiOTOP and set up the Monkayo fied and enrolled jewelry as their Jewelry Making Skills Training Center cum Enterprise Development Center right at the heart of ately renewed the pursuit of the
The untimely demise of
the town center. An initial funding of Php100,000 was approfull-time staff and personnel to of the training center. priated by the LGU, designating work on the institutionalization
produced by the Training Center since its formal launch in 2007. close to 70 micro and small entrepreneurs were created.
Over 100 graduates were
jewelry industry inspired and challenged the provincial government to provide its counterpart funding support of Php2M
With the trainings conducted,
for equipment and other funding LGU-Monkayo also had posients. The local business sector in Diwalwal also responded when it organized its own groups to en-
requirements. The initiative of tively influenced their constitu-
initiative of LGU-Monkayo, the
Inspired by the success and
of the LGU involvement in the management of the OTOP pro-
A concrete manifestation
Getting involved
headed the implementation of various programs and projects that would support the development of the jewelry industry in Monkayo, anchoring in the operations of the Jewelry Training tion of the private sector. LGU-Monkayos
Center with the active participa-
provincial government decided the Provincial OTOP of Comgovernments original plan of ing was waived in favor of LGUcenter operator. The efforts of
gram in Monkayo is the institutionalization of the Jewelry and the designation of Joan PinMaking Skills Training Center tal, an LGU employee with a
to declare and adopt jewelry as postela Valley. The provincial setting up its own jewelry trainMonkayo as host and training LGU-Monkayo to promote the
gage in the jewelry industry. Di-
support on the participation of OTOP-MSMEs to provincial trade fairs, regional trade fairs and OTOP island fairs are also evident in the provision of logistion of registration fees.
active
walwal Artisans Entrepreneurs Cooperatives (DARTECO) and MSG Diwalwal, are among the OTOP-MSMEs that were born
division head position, as OTOP Focal Person and administrator of the said training center. Ms. Pintal has become an active and elry industry.
from the inspirational effort and wisdom of LGU-Monkayo in in the municipality. developing the jewelry industry
tics, personnel and even assump-
effective advocate for the jewShe has spear-
development and growth of the
Monkayos Kariyawan Festival
The annual celebration of
the most visible testament of the support of the LGU to jewelry making as OTOP. The center is
the plans of integrating jewelry making courses in the academe.
late Mayor Joel B. Brillantes as conferred by the Mansaka tribe), the Bansilaw Jewelry Trade
not only serving as a free jewelry making training center for its interested constituents, but it center with available common ry making equipment and tools. town center but there are plans which is also located in Pobla-
Training Center has also ben(PWDs). With their limited emwere given priority to be among
The Jewelry Making Skills
Fair is the highlight event of the
is also functioning as production service facilities (CSF) of jewelIt is currently located in the to relocate near the state college, cion, Monkayo. The transfer of
efited persons with disabilities ployment opportunities, they the first batch of trainees in the training center and were trained for free.
towns annual Kariyawan Festifrom the gold and silver, mostly
val. Only the finest jewelry made from Diwalwal, are exclusively exhibited. The trade fair is a major project of the LGU to showof gold and silver in Monkayo, but also the unique skills of its jewelry artisans and craftsmen.
case not the only the abundance
the training center is in line with
ther of jewelry making industry in Monkayo, Datu Bansilaw (the
Named in honor of the fa-
every September was marked by silaw Jewelry Trade Fair. The
the yearly conduct of the BanBansilaw Jewelry Trade Fair has kayos gold and silver jewelry products since 2008 and proudly exhibited the products produced by Monkayos jewelry makers, from the jewelry training center. who are mostly fresh graduates
exclusively showcased Mon-
kayo Jewelry Making Skills Training Center cum Enterprise Development Center Project is 84 OTOPreneur Magazine April 2012
Launched in 2007, the Mon-
Major projects
strengthening
From
developing the
base of the jewelry industry in Monkayo, the establishment of a has been lobbied by the LGU. It the provincial government, the Department of Tourism (DOT) Cooperation Agency product showcase infrastructure received positive support from
manpower
and
museum, gold-making center and a gold history park will be set up for tourists and visitors. It will also serve as a Jewelry Training and Production Center as well as Jewelry Trade Center. The two story building that would house the towns museum is a major component. The project is estimated to cost Php15M. The junction project seeks to segregate an area outside of Poblacion, Monkayo, that would serve as a welcome landmark.
and the Japan International through the Davao Industry (JICA)
Cluster Capacity Enhancement infrastructure, a major project, dubbed as Bulawan Junction, is being actively pursued to be
Program. Under this marketing
The site has been identified in Brgy. Olaycon, south of Poblacion, Monkayo going to Davao City.
located in the entry point of the
town of Monkayo, where a gold
Contact Information: Nelly L. Esperanza Program Team Manager Compostela Valley Project Office 2F Genacor Bldg., cor. Arabejo-Fuentes Sts, Nabunturan, Compostela Valley Province Telefax : (+6384) 376.0500 E-mails : dti11.cv@gmail.com
By: Vanessa Claire Tero-Plea
As in the past years, 2010 marked the awarding of citations for every field of endeavor from award giving bodies. One Town, One Product (OTOP) Philippines is no exception to this. It has taken every step in order to bolster the confidence and esteem of micro, small and medium enterprises (MSMEs) as well as the people and institutions working for the cause of OTOP. The effective collaboration of the Municipality of President Quirino, Sultan Kudarat, with various government agencies, financing institutions and entrepreneurs is one of the reasons why it was awarded as the Best OTOP Implementer for Mindanao Island. Mayor Rodolfo L. Erese identified muscovado as the OTOP of the municipality. Such move was sealed with a serious commitment to support it through the passage of Resolution No. 2006-88-10th by the Sangguniang Bayan, dated Aug. 7, 2006, adopting Muscovado and Muscovado-Based Products as the OTOP of the Municipality of President Quirino. It did not just end there. Through direct linkages to government agencies and private institutions, the local government (LGU) extended all their efforts to develop the product to bring in more income to the farmers, which paved the way for muscovado to be developed and promoted. The Sangguniang Bayan appropriated Php75,000 for the formulation of Master Plan for the Development of Muscovado Industry. They also accredited the Sultan Kudarat Muscovado Farmers and Millers Corporation (SKMFMC) for membership to Local Special Bodies (LSB). On Feb. 29, 2008, Executive Order No. 01 was issued creating the Municipal OTOP Team. Its function is to develop and promote the muscovado product and oversee the program implementation which was started in 2006. With the LGUs commitment to support the muscovado development in all aspects, the Sangguniang Bayan has resolved to allow the utilization of the Municipal Level Grains Center Building (MLGC) as counterpart of the Municipality of President Quirino, to serve as Service Facility in Enhancing the Muscovado Processing in Sultan Kudarat, and reiterated Municipal Ordinance No. 30 Series 1993, which is an Ordinance Prohibiting the April 2012 OTOPreneur Magazine 87
Threshing of Palay and Corn along shoulder of the Road &Streets and Rubber Tire as Fuel in cooking/processing Muscovado Sugar. Likewise, with the compliance of basic requirements, the process of linking them with the financial institution for fund support had been made easier by the LGU. A grant from RPJapan Assistance for underprivileged farmers (KR2 program) worth Php898,000 was awarded to SKMFMC for the project Enhancing Muscovado Processing in Sultan Kudarat.
On the other hand, the Municipality of Pres. Quirino itself has extended a soft loan to SKMFMC worth Php600,000 for upgrading of existing facilities of muscovado. The Department of Trade and Industry (DTI) extended its service through a series of product development trainings and various trade fairs to generate sales and market promotion/linkage in collaboration with other LGUs, national agencies and non-government
88 90 OTOPreneur Magazine January 2012 April 2012
organizations (NGO). These partners include PCARRD CARRDEC; Department of Agriculture (DA); Department of Science & Technology (DOST); Department of Labor and Employment (DOLE); DTI; National Economic & Development Authority (NEDA); Provincial Government of Sultan Kudarat; Philippine Development Assistance Programme (PDAP); AsiaJapan Partnership Network for Poverty Reduction (AJPN); Federation of Peoples Sustainable and Development Com. (FPSDC); Upland Marketing Foundation, Inc. (UMFI); Philippine Business for Social Progress (PBSPCVED); Advocate of Philippine
Fair Trade, Inc. (APFTI); Sustainable Agriculture Grassroots Action (SAGA); Philippine Chamber of Commerce & Industry (PCCI); Technical Assistance for the Development of Rural & Urban Poor (TACDRUP); Covenant Consultants International Incorporated (CSII); and Canadian International Development Agency (CIDA).
LGU-Pres. Quirino has taken concrete actions towards the attainment of the OTOP Program objectives resulting to tangible proof. As of the latest data, the Muscovado Industry has earned P8,279,854.39 in revenue and employs 1,935 workers that comprise permanent, job order, mill, farm and migrant workers.
Contact Information: Nelly Nita N. Dillera Provincial Director - Sultan Kudarat 2F Quality Appliance Building, Alunan Highway, Tacurong City, Sultan Kudarat Phone : (+6364) 200.3166/477.0059 Telefax : (+6364) 200.3881 E-mail : dti12_sk@pldtdsl.net dti12_sk@yahoo.com
by Stephen L. Kintanar
The One Town, One Product (OTOP) Program has been dubbed as the great equalizer in terms of business development in the rural areas vis--vis the urban centers. That is exactly what happened to the Municipality of Santiago, Agusan del Norte. OTOP-Santiago took off on Feb. 24, 2005 when the Department of Trade and Industry (DTI) Agusan del Norte conducted OTOP briefing to local government officials of the province. During the briefing, the local chief executives and their representatives have presented their identified products for the OTOP Program. For the Municipality of Santiago, abaca was at the top of the list.
The final selection of the product came about after a series of consultation dialogue conducted by the Local Government of Santiago to different stakeholders in the community. As a result, the Office of the Sangguniang Bayan approved Municipal Resolution No. 46, s.2005, adopting abaca fiber as the priority product of Santiago under OTOPPhilippines on May 24, 2005. The town was the first to submit that OTOP resolution. The reasons for choosing the product was obvious: abundance of abaca in the area both indigenous and planted species, promising market potential of the product, knowledgeable abaca farmers and producers, and availability of vast potential areas for future expansion.
identified as the lead SME for OTOP-Santiago. The SME serves as the consolidator of abaca fibers in the municipality thus providing farmers assured market and reasonable price for their products. In July 2006, SIUFMULCO in coordination with DTI and LGU prepared and submitted a project proposal to Philippine Australia Community Assistance Program (PACAP). The project is worth P4.8M, devoted to enhancing and protecting an agro-forestry area through abaca fiber
Early Implementation
Upon adopting the resolution, LGU-Santiago immediately focused on the implementation of the program in their town. Through consultations and coordination with the DTI, various gaps were immediately identified and worked on. Among these were: (1) financial resources; (2) reliable source of diseasefree planting materials; (3) infrastructure support; (4) mechanized post-harvest facilities; and (5) local consolidator of abaca fiber. To address these concerns, a memorandum of agreement was forged by and among LGUSantiago, DTI, Department of Agriculture (DA), Department
of Environment and Natural Resources (DENR), Department of Agrarian Reform (DAR), Fiber Industry Development Authority (FIDA), and Technical Education and Skills Development Authority (TESDA), each committing to provide technical and logistic support. Moreover, LGU-Santiago created its own Municipal OTOP implementing arm that resulted to a fast-paced program implementation. LGU-Santiago through its GAHUM Program (Giya Ug Abag sa Hamugaway nga Ugma para sa Malahutayong Ugma) had allocated an annual budget of Php50,000.00 for the Abaca Projects in their town. Among the first organization to avail was San Isidro Upland Farmers Multi-purpose Cooperative (SIUFMULCO), April 2012 OTOPreneur Magazine 91
production. A total area of 90 hectares was to be developed for abaca fiber production for a period of three years. The proposal was approved on Oct. 4, 2006. The first tranche was released in Dec. 2006, while the rest of the funds were released in tranches for the next three years. For the supply of diseasefree seedling, LGU-Santiago and SIFMULCO tapped Caraga State University (CSU), formerly the Northern Mindanao State Institute of Science & Technology (NORMISIST), which is producing tissue-cultured abaca plantlets to meet the local demands. As for the technology, LGU-Santiago and DTI had been very fortunate to link up with JC-Agricultural Development Incorporated (JC-ADI), a reliable big brother for the abaca 92 OTOPreneur Magazine April 2012
fiber sector in the region that provided technical and financial assistance to interested abaca farmers. Technical assistance includes a 15-day training on abaca cultural practices of which SIUFMULCO and other abaca growers had availed. FIDA also provided assistance in this aspect. As a result, more and more individual farmers were lured to venture into abaca fiber production. And though limited financial resources have slowed them somewhat, the abaca area expansion has considerably increased each year. Another important contributor to the OTOP in the area is the implementation of the Rural Micro Enterprise Promotion Program (RuMEPP), the additional technical assistance of which have continuously been availed by abaca producing
organizations, including the development of abaca based handicrafts.
Success Indicators
After five years of OTOP implementation in the town, substantial economic contributions were gained by the municipality in terms of the development of the abaca fiber. From a production point, an estimated 200 additional hectares of abaca plantation had been developed. SIUMULCO alone has so far developed an additional 90 hectares of abaca in their area of operation. Abaca-related operations of SIUFMULCO, which
include abaca production, abaca trading, abaca handicrafts, and abaca nursery making, have also extensively expanded over the years. SIUFMULCO is now very stable in its abaca operation, having increased its sales volume from three tons of abaca fiber in 2007 to 20 tons per month at present. Thanks to the market matching activity facilitated by DTI, SIUFMULCO was able to directly deliver to Specialty Pulp Mill Incorporated (SPMI) in Leyte with a minimum monthly purchase order of 20 tons of baled abaca fiber. The cooperative was also able to acquire a baling machine and put up a bigger warehouse. It has become
one of the top producers and traders of abaca fiber in the Caraga Region selling directly to exporters in Davao City. Its abaca projects have so far generated at least 200 jobs.
Also, along with SIFMULCO, five local MSMEs in Santiago have also engaged into abaca fiber production. The success is now spreading!
Contact Information: Gay A. Tidalgo OIC-DTI Agusan del Norte Rudy Tiu Building II, JC Aquino Ave. 8600 Butuan City, Agusan del Norte Phone : (+6385) 225.3341/ 341.5221/341.9257 Fax : (+6385) 815.6158 E-mail : dti_adn@yahoo.com CRG.Agusan.Norte@dti.gov.ph
Introduction on Selected OTOP Flagship Projects
heres a common thread that runs through all these three OTOP flagship industries the coco coir, engineered bamboo, and SPIN and make no mistake about it, the thread that binds these three is stronger than well-spun plans, and as lasting as woven hopes. These common threads are the common goals of easing poverty and helping Filipinos face climate change. Impossible, one might say considering that the coco coir and bamboo, are simple, basic natural materials that could be had anywhere in the countryside; while the end products of project SPIN are also made of natural materials. Despite all current technology and modern contraptions, it all boils down to this: back to basics in fighting a long time problem like poverty and a new one like climate change. 1. Coco coir The tree of life lives up to its name as it spews one of its by-products, the decorticated bunot or coco coir, a lifesaver of sorts. It has great capacity for holding water; elasticlike, pliable, and resilient, resistant to bacterial and salt water reaction. When woven into cordage and matted, the coco coir could be used to bioengineer difficult-to-vegetate terrain, used as liner along waterways
to prevent soil erosion, used as mattress filler, for insulation, as filter, and much more. These qualities make the coco coir the ideal climate change defender inexpensive, plentiful, biodegradable, safe to use. With proper management, coco coir production could drastically cut unemployment numbers in the rural areas since thousands of metric tons can be produced yearly. A number of European and Asian countries are interested in importing coco coir to counter the effects of climate change in their areas too. 2. Engineered bamboo Another familiar sight in the rural areas are the billowing growths of bamboos. The bamboo is far more useful than to skewer pigs for lechon, as barbecue sticks, or as housing material. Greed and increasing population housing needs have decimated forest growths trees that take decades to be optimally useful had been cut indiscriminately causing landslides, flood surges, and rampaging unexpected floods. Bamboo makes a perfect substitute as building material and with creative tweaking, it is the substitute for lumber. The bamboo is pliant and can withstand not only typhoons but also earthquakes. However, it is engineered bamboo that will generate employment and ease climate change. Replanting the
bald mountains and forests will need thousands of hires; replanted areas will stop floods and landslides. 3. SPIN or Subcontracting Partners for Innovation is the answer of government to the need of providing employment to returning rebels who want to keep body and soul without compromising their dignity and selfrespect. A snag that confronts authorities while enticing men and women who had left the fold of the law is a program that would allow them to come back, go mainstream by living day to day not through dole outs but by earning their keep through some kind of work. SPIN gives these returnees trainings on weaving or a craft. The trainings are exacting and demanding and the trainees must pass a standard test to pass. Their skills, honed and perfected, are usually hired by Micro, Small, and Medium Enterprise (MSMEs) engaged in the making of furniture or handicrafts. Like the first two products (coco coir, engineered bamboo), SPIN uses indigenous materials promoting eco-friendly and engenders jobs in the countryside. The One-Town One-Product is an idea, a project, a vision that had grown to reach even goals before unseen.
ot all gold can be found below ground; gold can also be found growing in trees, specifically coconut trees. For as science and technology had found out in recent years, there is more to the coconut than its meat, walis tingting (coco frond broom), and coco lumber. The findings reveal that between the shiny green or brown cover (depending on the maturity of the coconut) of the coconut and the hard sheathe inside that protects the coco meat, is the fiber known locally as bunot. This fiber is decorticated into coco coir and coco peat. It is this unassuming almost powdery substance that is creating a healthy stir not only
in the science and agriculture sectors, but also in countries far and near. Coconut farmers who had been in despair in recent years as what to do with their ageing coconut farms and trees will find a gleam of hope, knowing that coco coir could be used in multiple ways. Not only could it be used as excellent planting medium additive that could fertilize an otherwise degraded soil, but it could also be used as insulation, carpet, car seat stuffing, mat, upholstery cushion, rope and cordage, fishing net, flooring material, filtration pads, mattress fiber, pot liner, brush, and many other uses waiting in the wings.
DTI Secretary, Gregory Domingo (3rd from right) on one of his visits to a Coco Gentextile factory in Davao City.
That it is entirely made of natural material is its most distinct advantage. That it is biodegradable is a definite plus for countries that had been burned by modern materials, which had been more of a bane than a boon. That it is unquestionably environment- friendly should make countries sit up and take a hard look at coco coir. And in these times of global warming, the shifting seasons will need more of coco coir products to mitigate climate change. One of the more promising edges of the coco coir is an end form called coco gentextiles. Gentextile is made from coco coir that had been woven into high strength mats and rolled tightly. Along shorelines, it is used to stabilize the erosion of soil. Since it is highly absorbent and of natural fiber, it is most buoyant and resistant to bacterial and salt-water reaction. Gentextile is also used to arrest soil erosion, rehabilitate eroding landscapes, and useful for road and river embankment.
But although the country produced more than 15 billion coconuts covering 3.402 million hectares of land in 2009, it only got to export 4,561 metric tons of coir products. This is a pittance when you compare it to the just .395 million coconuts produced by Sri Lanka for the same period but was able to sell 151,061 metric tons of coir products. In 2010, total Philippine coco coir export amounted to $1.711 million. A study from the Philippine Coconut Authority (PCA) says that the country has a potential coir supply of 723,900 MT out of those billions of coconuts. Most of these should have been sourced from that land of coconuts, Mindanao the major supplier of coco fiber with 3,587,386 MT or 59 percent of total. Luzon comes in second with 1,386,597 MT or 23 percent and Visayas with 1, 058, 927 MT or 18 percent. Apparently, although the figures seem high, the decorticating capacities of
DTI Secretary, Gregory Domingo, delivers the keynote message during the 1st National Coco Coir Summit held March last year in Davao City.
What does the future hold for coco coir? Plenty it seems. There is a huge demand for coco coir that could easily run to billions of dollars worth. The common tao in the street does not realize that our country is literally sitting in a gold mine of coco coir.
The country exports coco coir to nine countries with the Peoples Republic of China and Taiwan as the largest importers accounting for 57.21 and 23.22 percent respectively of the export market.
Delegates of the 2011 National Coco Coir Summit. DTI Secretary Gregory Domingo and Undersecretary for Regional Operations and Development Group, Merly Cruz, represented the Department of Trade and Industry in the said summit.
DTI-RODG Undersecretary Merly Cruz, (far right) shows DTI-Secretary Gregory Domingo handicrafts whose components are made from coco coir.
twining, and coco-net production that can be replicated; Land Bank of the Philippines to provide a financing window/package for the industry players; Philcoir to propose the setting up of a P70 million tufted coir manufacturing facility; and, Department of Public Works and Highways to use geotextile/coconets for government infra projects; Issuance of MC 25 that directs all government agencies to use coco coir and coir projects where applicable. With the issues in check, the goal by 2016 of expanding the coir industry 10-fold worth $6.53 million worth of coco coir exports will be within reach.
these areas are far too low to produce the needed coco coir. So where did we go wrong? A fledgling industry, there are only 18 PCA-registered operating coir producers/ exporters from Southern Luzon, Bicol, Visayas, and Mindanao. And when one gets down to the bottom of it, the output of these plants are miniscule most produce only one to three MT per day while only seven of total have actual production of five to 20 MT per day. If coco coir is gold, why dont we hear any gold rush? The issues in this promising industry are many and government is lending its ear and resources to get the industry off the ground. Among the more pressing issues are: that majority of the decorticating machines in use are very small thus incapable of producing huge volumes; facilities and machines need big capital investment; small machines result in low utilization of raw material husk/fiber; there is stiff competition from other countries that offer low price; inadequate drying facilities;
inadequate infrastructure; and prohibitive transport costs. Governments response is swift and to the point: Department of Agriculture (DA) will address the need for connectivity of coco husk suppliers and processing plants through the creation of farm-tomarket roads;
DA to recommend the sustained use of coco peat or coco dust as soil conditioner to optimize crop yield; Distribution of 77 decorticating machines nationwide; Department of Trade and Industry presented four business models coco husk collection, coco coir production, mechanize
DTI Undersecretary for Regional Operations and Development Group, Merly Cruz, presents the Coco Coir Industry Development Plan to the delegates of the 2011 National Coco Coir Summit held in Davao City.
For years, authorities had been scrounging for answers to solve unabated poverty. Of late, a search was on to look for answers to ease climate change. To these two seemingly unconnected issues, the answer had been staring at the searchers all this time and it comes in the unlikeliest of forms, a species of grass - the bamboo. In the Philippine setting, the most ideal kind is the bamboo called tinik. History and technology have shown that the bamboo that shoots up tall, pliant, and sturdy has a myriad and one uses.
Mitigating factor vs climate change and poverty

Important too is the fact that bamboo will be a mitigating factor against climate change and poverty. A number of years from now, missing stands of trees will be replaced by fast growing bamboo, and bald mountains and eroding embankments will be covered by swishing greeneries. The current administration had pledged one million hectares (ha) to be planted to trees; 500,000 ha. will be planted to bamboo in
Reforestation will have a twopronged effect it will mean employing hands, and with one worker needed per hectare translates to 500,000 laborers in the next 10 years. This could be one of the answers to the nations unemployment problem. Reforestation will also be the answer to climate change it will mitigate floods and landslides currently problematized not only in the Philippines, but by lands worldwide.
Bamboo Industry Development Project, which will steer the engineered bamboo component. Beneficiaries of this project are the agrarian reform communities (ARCs); upland farmers; out-of-school youths (OSYs); the underemployed and unemployed; displaced overseas workers; and Micro, Small, and Medium Enterprises (MSMEs) among others. It will take a massive show of hands to propagate, develop, and process this lowly grass: aside from the thousands needed for reforestation, bamboo nurseries will be needing people; thousands of hands will be needed in the processing of bamboo since its unusual shape needs to be processed first before these could be viable as construction materials and by-products.
Bamboo project
Under the Department of Trade and Industry is the
nlike a tree, the bamboo rises from the ground tubular, hollow, and rigid. Still, it is malleable and grows rapidly at an average of four inches a day although in some parts of the globe species had been known to zoom 36 inches in a day! Supposedly disease resistant, its bokbok-prone material was a challenge, until the Department of Science and Technology people found a way to treat the bokbok or powder post beetle. And unlike a tree that takes years to be feasibly useful, the bamboo could be harvested and be beneficial in a matter of four years. The benefits will come in the form of engineered school desks, around 20 percent of the P10 billion-worth desk requirement of DepEd and chairs for millions of schoolchildren; as alternative building material for mass housing, schools, and health centers; as material for crafts and products; and as source of livelihood projects for thousands.
Engineering the bamboo

To handle the bamboo from start to finish, a system had been devised. Throughout the countrys three major islands, there are the so-called nodes and hubs, the major sites of designated parts of the country. Initial targets are the embankments of lakes, rivers, and creeks to prevent soil erosion and reduce silting. Deep-rooted bamboos will allow water to flow smoothly and maintain the water volume that these waterways can hold. Correctly handled, bamboos will prevent rampaging, disastrous floods and those planted in slopes will stop deadly landslides.
the produced bamboo: a node is where bamboo poles are harvested, cut into slats, and treated; a hub is where the treated slats are sent and where these slats are then engineered to make a host of furniture, accessories, and utensils. A node is run by DTIidentified entrepreneurs or farmer cooperatives that
had been equipped by the Department of Environment and Natural Resources (DENR) with scientific know-how in bamboo propagation and harvesting. It is at the hub where Pinoy ingenuity goes to work the bamboo is engineered according to specifications. It is from hubs that institutional buyers like DepEd get the engineered bamboo for desks
and chairs for millions of schoolchildren.
Bamboo low cost housing

Bahay kubo in the city, why not?
The first to suffer during a storm surge are those who
live along waterways hence, the need to relocate them. Authorities are stumped in putting up shelters since the cost of construction materials have become prohibitive. There is a proposal to create bahay kubos or bamboo huts as the alternative housing. There is no mistaking about the sturdiness of the bamboo, it could withstand the strongest of typhoons and even an earthquake with 7.2 intensity in the Richter scale, is fire-resistant, and 50 times stronger than the legendary oak. Inexpensive and readily available, informal settlers and even low-salaried employees could have bahay kubos constructed in a jiffy. How humbling that the bamboo, so familiar in the Philippine landscape could come to the rescue of Filipinos by mitigating climate change and poverty two of the more crippling problems of the nation.
(A success story on the SPIN, an OTOP Flagship Program)

by: Jojisilia Villamor
sia reeled as the 2008 global financial crisis punched its way throughout the world. Thereafter, a cloud of uncertainty simmered over the Philippine economy whose fortune is tied to its markets. Local exporters in particular suffered tremendously in the wake of the international financial slowdown. The situation in Cebu was particularly acute as the province relies heavily on exports. With the continuous challenges besetting the industry, the Department of Trade and Industry (DTI) was inspired to find ways to support and ensure that this sector will be sustained through a subcontracting development program. In the process, a few Cebu based exporters have also managed to help thousands of rural residents in the country. Through SPIN or Subcontracting Partners for Innovation, the unemployed, housewives, rebel returnees, and disabled from far flung towns undergo skills training and immediately earn income by From 3 in 2008, there are now 13 regions that have joined the program, namely: 1, 2, 3, 4A, 5, 6, 7, 8, 10, 11, 12, CAR and CARAGA. As of 2011, SPIN has generated 28,186 jobs in the Philippines and provided 929 MSMEs with orders for woven products amounting to more than 242 million pesos between 2008 to 2011. In Central Visayas, SPIN has trained 23,020 worldclass weavers and generated purchase orders amounting to 199.33 Million Pesos in the same period. More exporters in Cebu are now tapping countryside residents from all over the country to supply their subcontracting needs. These exporters, all members of the Cebu-GTH, are Linda Colin Creation, Amer Trading Inc., Hands On International, Tambuli Fashion & Home
SPIN: weavers spin
SPIN beneficiaries show a finished product to SPIN Champion and DTI-7 Director Asteria Caberte (right).
producing specific job orders for Cebu-based export companies. SPIN is a joint effort of the DTI, Cebu Gifts Toys and Housewares Foundation (CebuGTH) and the Armed Forces of the Philippines (AFP). Since 2008, SPIN has created products ranging from baskets, placemats, tip towels, trays to fashion accessories. An inspiring example on overcoming adversity, the SPIN project has also become a stimulus for peace and economic progress in conflict and povertystricken areas that were once breeding grounds of insurgency.
Now, the unemployed including rebel returnees have gained a ticket to a new and better life. SPIN Champion and DTI Region 7 Director Asteria Caberte beams with pride as she talks of how the SPIN allows exporters to increase their production volume in a costeffective manner as it generates jobs and promotes peace in the rural areas.
DTI-7 Director Asteria Caberte (left) inspects a bayong made by one of the SPIN beneficiaries. SPIN beneficiaries at work (above & below).
Accessories Inc., Heldred Export International, Lookwell Phils. Corporation, Regalos Exim, Inc., Arden Classic Inc., all Homes Designs, Inc., Jimcastler International Inc., Prissan Eximport International, Art N Nature, Janice Minor Exports and 33 Point 3 Exports, Inc. After the successful buying missions by Cebubased exporters, training and orientation are still ongoing all over the Philippines. SPIN trainings have expanded to as far as Masbate, Pangasinan, Abra, Zamboanga, Talacogon, Agusan
del Sur, Talaingod, Davao del Norte. Other areas include once rebel infested towns in Central Visayas such as Tuburan, Minglanilla, Pinamungahan, Asturias in Cebu; Danao, Carmen, Ubay, Sevilla in Bohol; Sta Catalina, Zamboanguita, Siaton, Amlan in Negros Oriental, unlocking the skills and generating employment in these areas. Caberte recently announced that the Aquino government is supporting the SPIN program. In fact, DTI has already received a budget of Php 4 Million to
are actual export orders, she explained. Most exporters who do not have enough workers to do the job orders of their clients subcontract some of these processes. This production scheme solves the exporters problem on sustaining capacity. Cruz concurred that although the export sector in general is facing a difficult situation, demand is always there and one of the most important things that exporters should maintain is its capacity. On this aspect the SPIN program is helping significantly the small and medium players.
SPIN beneficiaries weaving baskets.
DTI-7 Director Asteria Caberte during one of her visits to SPIN beneficiaries.
sustain the program for the rest of year 2012. DTI has allocated additional budget for SPIN to extend trainings to more areas in the 13 different regions in the Philippines. Such good news from government is a boon to the export sector. Jenifer Cruz, whose company the 33 Point 3 Exports is the pioneering and largest supporter of SPIN program, said that the current governments decision to continue the program is certainly a big help to the battered export sector.
With additional funds from government, SPIN is set to change more lives. The program will be able to recruit more unemployed residents, rebel returnees, and even out-ofschool youth in cleared conflict areas and marginalized sectors. As more and more towns join the SPIN program, more Filipinos will have the chance to take the wheel of their own lives and weave a more secure and comfortable future for themselves and their families. Who would have thought that, in trying to survive a crisis, our exporters become part of the solution to lift thousands of Filipinos from strife and poverty?
Caberte emphasized that the good tidings are not just for exporters but weavers as well. With SPIN, weavers earn without delay as the program follows a market driven scheme wherein the products to be made by the trained group
33 Point 3, Inc. General Manager Jenifer Cruz M.L. Quezon Street., Casuntingan Mandaue City, Cebu, Philippines 6014 Telephone Numbers : +63 (32) 344-8831 / +63 (32) 344-8832 DTI Central Visayas Office Regional Director: ASTERIA C. CABERTE 3rd Flr, WDC Bldg., Osmena Boulevard, cor. P. Burgos, Cebu City Tel. # (63)(032) 255-0036 / 255-0037 / Fax # (63)(032) 253-7465 Email: dti_7@yahoo.com / dticentralvisayas@gmail.com BOHOL PROVINCIAL OFFICE Provincial Director: MA. ELENA C. ARBON 2F FCB Bldg., CPG Ave., Tagbilaran City Tel. # (63) 038-501-8260 / Fax # (63) 038-411-3533 Email: dtibohol@yahoo.com
CEBU PROVINCIAL OFFICE Provincial Director: NELIA V. F. NAVARRO 3F LDM Bldg., M. J. Cuenco Avenue, Cor. Legaspi Street, Cebu City Tel. # (63)(032) 412-1863 / 253-2631 / Fax # (63)(032) 412-1856 / 254-0840 Email: dticebuphil@yahoo.com / dticebuphil@gmail.com NEGROS ORIENTAL PROVINCIAL OFFICE Provincial Director: JAVIER FORTUNATO, JR 2F Uymatiao Bldg., San Jose Street. Dunaguete City Tel. # (63)(035) 422-2764 / Fax # (63)(035) 225-7211 Email: jong.fortunato@gmail.com SIQUIJOR PROVINCIAL OFFICE Provincial Director: NIMFA M. VIRTUCIO Chan She Bldg., Legaspi Street, Poblacion, Siquijor, Siquijor Tel. # (63)035-480-9065 / Fax # (63) 035-344-2238 Email: dtisiquijor@yahoo.com
For decades, before the advent of foams and rubberized mattresses, every household owned several pieces of banig in various sizes, and these were unrolled or unfolded on the floor or on wooden beds at night for sleeping.
While the banig was commonly used for sleeping purposes, there are many innovative uses of banig.
family locally known as pandan, sabutan, romblon, depending on what province one comes from. Banig is also woven from buri, tikog reed, and abaca plants but it is the pandan and the tikog that produce the most cooling effect to the body.
What banig is made of

The most popular material used for banig is still from the pandanaceae
A cursory look at the banig industry in modern times reveals an uneven texture in the development of this once thriving industry throughout the country.
Region 3
erhaps one of the more successful banig stories is from Aurora province of Region 3. Fortunately, early on, in the 90s, the local weavers were assisted by the DTI in fiber bleaching, dyeing, and color matching. The DTI brought in experts from the Philippine Textile and Research Institute - DOST who taught the sabutan weavers the new techniques in this industry. In tandem with the Product Development and Design Center of the Philippines that taught the weavers color matching, the innate creativity of the local maglalala (weaver) soon caught on and wove mats according to the tastes and preferences of todays buyers. Today, the Aurora weavers are churning out not just sleeping mats, they use the banig as the basic material and by creating products like bags, throw pillowcases, footwear, furniture upholstery, and even gowns and many more, these are the value added to the lowly banig.
Innovative uses of banig: Furniture Upholstery Gown Materials Used: Sabutan
Region 4A
ike most banig producing regions, the oft-used material here is the pandan that grows profusely in Laguna and Quezon Provinces, and to a certain extent, in the province of Batangas. Banig users in CALABARZON had dwindled considerably and banig producers have exploited other uses for banig materials such as bag- and hat-making.
Innovative uses of banig: Bag Materials Used: Pandan
Region 6
anig weaving is a thriving industry in this Visayan region. In fact it is so vibrant that out of the regions six provinces, four Aklan, Antique, Guimaras, and Negros Occidental still adhere to the traditional art of banig weaving where they specialized in making floral decors and personalized mats.
Innovative uses of banig: Floral Decoration Personalized Items Materials Used: Bariw or Screw Palm Buri
Innovative uses of banig: Fashionable Bags Materials Used: Pandan Tikog
Region 7
n Central Visayas, the pandan plant is also commonly used as material in weaving mats; but many Visayans prefer more the tikog reed, a shrub-like plant that have pliant but fine strands best suited for weaving. Innovative products made from banig like bags, hats, slippers, and cushions entice locals and visitors to buy.
Region 9
egion 9 or Zamboanga peninsula is known for its laminusa mats which in turn are known for its strength, fine texture, resplendent colors, and for its intricate and unusual designs. These have become collectors items and those who have laminusa mats may have priceless items in their hands.
Innovative uses of banig: Fashionable Bags Materials Used: Pandan Tikog
Region 10
n Region 10, the province of Misamis Oriental and Bukidnon are actively engaged in banig making; the favored material are romblon, pandan and ticog. Like other regions that has banig weaving as a source of livelihood, Region 10 has added other items in its line-up of products: exercise mats, bayongs, box coverings, hampers, wine holders, on top of the usual mats, bags and hats.
Innovative uses of banig: Exercise Mats Box Covering Materials Used: Romblon Pandan
Region 11
There is a new twist to the art of weaving in the advent of climate change. Bayongs that used to come in unexciting fatigue green or beige colors, now come in woven banig material in different colors, designs, and shapes. Aside from using banig as material for making bayong, the ingenuity and creativity of local entrepreneurs have transformed banig into folder organizers, woven boxes, among others. Innovative uses of banig: Slippers Folder Organizer Materials Used: Pandan, Cogon, Nito
The banig industry has no way to go but up and the DTI, together with its partners, are mapping plans for 2012 and beyond for banig and its sister product, the bayong.
UNIDOs Trade Capacity Building Programme

nhancing the capacity of developing countries to participate in global trade and to comply with the World Trade Organization (WTO)s Sanitary and Phytosanitary Measures (SPS) and Technical Barriers to Trade (TBT) agreements is becoming increasingly critical for their future economic growth. UNIDO, in an effort to help developing countries overcome these challenges, has launched its Trade Capacity Building (TCB) programme in 2005. The UNIDO TCB programme offers a variety of services and tools which are grouped in three clusters: Supporting the development of competitive supply capacities; Quality management and enterprise upgrading; and, Establishing standards, metrology, testing, certification and related conformity assessment infrastructures. TCBs technical assistance programme contributes immensely to the enhancement of national and regional export potentials. These services also enable developing countries to better access global value chains and to build up quality-related infrastructure, which has a positive impact on development and poverty reduction. The TCB programme is based on a three-pronged approach, referred to as The 3Cs: Compete: remove supply side constraints and increase the competitiveness of the industrial sector. Conform: enable products to conform to market requirements (standards, technical regulations and conformity assessment Connect: enable producers to connect with the market and foster integration into the multilateral trading system. The first pillar enables enterprises to manufacture products with high-export potential in the quantities and quality required by the markets. The second establishes ways of demonstrating evidence of market conformity so that these enterprises can prove that their products conform to the relevant international standards; in particular, to private buyer requirements and technical regulations. The last pillar, delivered mostly by partner organizations, facilitates efficient crossborder transactions and increases developing countries understanding of procedures) and overcome barriers to trade. international trade rules. The programme is built on the principle of forming strategic partnerships with other multilateral and technical organizations and agencies to maximize the efficiency and effectiveness of the technical assistance provided. The key United Nations partners are the Food and Agriculture Organization (FAO), the International Trade Centre (ITC), the United Nations Conference on Trade and Development (UNCTAD), the World Bank and the WTO. The main technical partners are the International Organization for Standardization (ISO), the International Accreditation Forum (IAF), the International Laboratory Accreditation Cooperation (ILAC), the Bureau International de Poids et Mesures (BIPM) and the Organisation Internationale de Mtrologie Lgale (OIML).
As the momentum builds towards Rio +20 , UNIDO launched the Industrial Development Report 2011. On 5 March 2012, UNIDO organized a High Level Discussion in Bangkok , Thailand. Department of Trade and Industry (DTI) Undersecretary for Regional Operations and Development Group (RODG) Merly Cruz (third from left) attended the event as a panelist.
UNIDO will continue to develop and implement its portfolio of technical cooperation activities within its three thematic priorities, namely Poverty Reduction through Productive Activities, Trade Capacity-Building, and Energy and Environment. UNIDO is also gearing up for the Rio+20 UN Conference on Sustainable Development, where the Organization will advocate the central importance of Green Industry within the overall concept of Green Economy. In Brazil, UNIDO will focus the promotion of its activities on greening of (existing) industries, developing new green industries, and industrial energy efficiency. UNIDO plans to hold several events at Rio+20. It will launch its Green Industry platform, hold a high-level panel on Industrial Policy for Greening and Industrial Growth. A seminar on greening existing industries through Resource-Efficient and Cleaner Production. An event on the Montreal Protocol as an important component of the Green Industry concept will be held. It will also conduct
a session on Renewable Energy as an engine for Green Growth. In addition, UNIDO will maintain its own booth, and contribute to a Clean Technologies Exhibition that will be organized by the Government of Japan. Ultimately, UNIDOs role within the international institutional framework for sustainable development should be further strengthened. In addition, UNIDO will provide support to the Secretary-Generals Sustainable Energy for All initiative (SE4ALL), which aims to achieve by 2030 three interlinked global targets: universal access to modern energy services; the doubling of energy efficiency; and the doubling of the share of renewable energy in the worlds energy supply. UNIDOs latest Industrial Development Report, titled Industrial Energy Efficiency for Sustainable Wealth Creation: capturing environmental, economic and social dividends, is a contribution to the new energy initiative.
PTRACE Bits
s part of the Philippine Traceability for Revitalized AgroIndustrial Competitiveness Enhancement (PTRACE) Project, UNIDO is set to initially train duly assigned trainers from the Department of Agriculture (DA) and the Department of Trade & Industry (DTI) to equip them with recent and comprehensive information on traceability. The training modules that UNIDO will provide can be mainstreamed as integral parts of the following existing capacity-building programmes: (DA) Capacity Development Programme National Marketing Assistance Programme Standards Development Programme (DTI) Small & Medium Enterprises Development (SMED) Programme Export Development & Promotion Programme The first of such trainings for the DA and DTI trainers covers Traceability and Product Recall. Attending this practical training will acquaint participants with traceability concepts, requirements, implementation and technology for agro-industrial businesses.
Additional details regarding the Traceability and Product Recall course are as follows: OBJECTIVES: After attending this training, the participants should be able to: Understand the importance, benefits and constraints of traceability; Identify the role of the individual enterprise within the integrated food supply chain traceability concept; Distinguish different international regulations concerning traceability; Demonstrate how actual data forms should be used to establish traceability; Recognize the benefits and constraints of software application for traceability systems; and, Design a traceability system at their farm, pack house, enterprise, company or distribution depot.
BRIEF DESCRIPTION: Safe and good quality food is essential to food security, public health and economic development. Increasing the supply of safe, wholesome food reduces the impact of food-borne diseases, which could cause illnesses, deaths and serious economic damage. Implementing a transparent and risk-based food safety control system is a necessity to export and comply with international trade. Developing and maintaining such a system involves all stakeholders, from farm to final consumer. It requires action and cooperation by the growers, retailers, packers, producers, exporters, consumer organizations, governments, NGOs, universities and other related institutes. A traceability system provides a basis for trust in safeguarding human health and develops sustainable ways of producing and exporting food products. Applying traceability systems
assures the delivery of these requirements and demands. TRAINING MODULES: 1) Introduction to Traceability 2) Establishing Traceability Systems 3) Product Recall 4) Traceability and Technology TARGET BENEFICIARIES: Growers, farmers, and farmer associations; Pack house managers and employees; Suppliers and distribution managers; Exporters; Quality Assurance Managers, Quality Control Managers, Quality Inspectors; and, Stores supervisors, marketing or sales employees.
Officials of the Department of Trade & Industry (DTI), Department of Agriculture (DA), Department of Finance (DOF), National Economic Development Authority (NEDA) and United Nations Industrial Development Organization (UNIDO) held a Luncheon Meeting at the Intercontinental Hotel, Makati City on 24 January 2012 to agree on the next steps for the Philippine Traceability for Revitalized Agro-industrial Competitiveness Enhancement (PTRACE) Project.
OTOP Store (Tindahang Pinoy) is the Philippines DTI One Town One Products showcase. In partnership with local Micro, Small and Medium Enterprises (MSMEs), the DTI provides access to local, authentic, indigenous, and sustainable products for both the domestic and international markets. OTOP Stores in region 3-Clark, region 7-Cebu City and region 11-Davao City enables the Filipinos to avail of products from all the regions. It creates the awareness of and a market for world-class Filipino products. OTOP Store operates through a product ordering system which will allow tourists and residents to buy the products of their choice at the local market prices and have them delivered to their doorstep.
NATIONAL LAUNCH in CEBU on April 20, 2012

OTOP STORE Clark Decco Central Showroom Bldg. N3679, C. M. Recto Highway Clark Freeport Zone, Pampanga Tel. No.: (045) 599.5170 / 599.6214 www.deco-central.com OTOP STORE Cebu Bridges Town Square Plaridel Street, Brgy. Alang-alang Mandaue City Tel. No.: (032) 520.3452 / 520.3448 www.cebugth.org OTOP STORE Davao Aldevinco Shpping Center C. M. Recto cor. Roxas Streets Davao City Tel. No.: (082) 303.0272
Dynamic and fresh, Shopinas.com is a one-of-akind online shopping website tailor-fit for Filipinos here and across the globe. Connecting sellers and shoppers, Shopinas.com provides a fun, convenient, and secure online marketplace where anyone can buy and sell a gamut of wares: from shoes, bags, accessories, personal care products to the latest gadgets. Founded in May 2010, Shopinas.com is one of Air21 Global Inc.s flagship projects. This integrated, end-to-end e-commerce platform is optimized to cater to the needs of businesses of any scale. In this site, merchants get to customize their online storefront according to the look they want for their brands. Here, both merchants and buyers are guaranteed of a secure payment gateway, a reliable and efficient logistic solutions, all within the ease of a user-friendly interface.
The official eCommerce and Logistic Partner of DTI OTOP store.
ABOUT AIR21 GLOBAL Air21 Global is the latest addition to the continuously expanding Lina Group of Companies, which is known in the country as the total logistics service solutions provider.
Enabling Business. Empowering Consumers

OTOPreneur 2012 April

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Magazine of the Department of Trade and Industry

APRIL 2012 ISSUE

Semi-annual m agazine of the D epartment of Trade and Industr y

Homegrown Business Partners in the Countryside

Editor Dominic P. Abad

Secretary Department of Trade & Industry

Executive Editor Gregory L. Domingo

Homegrown business partners in the countryside

Semi-annual m agazine of the D epartment of Trade and Industr y

2 OTOPreneur Magazine April 2012

Magazine of the Department of Trade and Industry

Message from the Secretary

Secretary Department of Trade and Industry

April 2012 OTOPreneur Magazine 1

Homegrown Business Partners in the Countryside

Undersecretary Regional Operations and Development Group

A cluster-based industrial development paradigm

The Big Push for SMEs:

Building Alliances for the Common Good

The BIG PUSH for SMEs: A Framework

Using the Cluster-based Industry Development Strategy

Magazine of the Department of Trade and Industry

NICCEP and the Value Chain Approach in Industry Clustering

April 2012 OTOPreneur Magazine 3

Homegrown Business Partners in the Countryside

OTOP, the Harbinger of Industry Cluster in the Regions

4 OTOPreneur Magazine April 2012

Magazine of the Department of Trade and Industry

The SECI Model: Bringing Innovation in Industry Clustering

April 2012 OTOPreneur Magazine 5

Homegrown Business Partners in the Countryside

In Pursuit of the Common Good

6 OTOPreneur Magazine April 2012

Magazine of the Department of Trade and Industry

From the Editor

Contributors................................................12 OTOP National Expo....................................14 Newsbits from the Countryside..................17 SMEDSEP......................................................26

Old Recipe, New Markets

Homegrown Business Partners in the Countryside

Magazine of the Department of Trade and Industry

Homegrown Business Partners in the Countryside

Magazine of the Department of Trade and Industry

April 2012 OTOPreneur Magazine 11

Homegrown Business Partners in the Countryside http://otopphilippines.org/

Magazine of the Department of Trade and Industry

12 OTOPreneur Magazine April 2012

Magazine of the Department of Trade and Industry

April 2012 OTOPreneur Magazine 13

Homegrown Business Partners in the Countryside

14 OTOPreneur Magazine April 2012

Magazine of the Department of Trade and Industry

MOST INNOVATIVE PRODUCT (Food Category)

MOST INNOVATIVE PRODUCT

Homegrown Business Partners in the Countryside

MOST INNOVATIVE PRODUCT

BEST DRESSED BOOTH

16 OTOPreneur Magazine April 2012

Magazine of the Department of Trade and Industry

Newsbits from the Countryside

Everybody loves Cordillera

April 2012 OTOPreneur Magazine 17

Homegrown Business Partners in the Countryside

Newsbits from the Countryside

More than just a historical place

Finding a sure footing above the rest