PROVINCIAL COMMODITY

INVESTMENT PLAN (PCIP)

Davao del Sur CY 2014-2020

PROVINCE OF DAVAO DEL SUR

i
TABLE OF CONTENTS

Title Page

Message 1

Foreword 2

Executive Summary 3

Introduction 5

Chapter I – Development Background 6

Chapter II – Development Vision and Framework

of the Province 7

Chapter III – Priority Commodity Chains Development 13

I-A. Commodity Profile: Cacao 13

I-B. Investment Plan 18

II-A. Commodity Profile: Banana (Cardaba/Saba) 20

II-B. Investment Plan 25

III-A. Commodity Profile: Rubber 26

III-B. Investment Plan 31

IV-A. Commodity Profile: Abaca 32

IV-B. Investment Plan 39

V-A. Commodity Profile: Cassava 41

V-B. Investment Plan 46

VI-A. Commodity Profile: Seaweeds 47

VI-B. Investment Plan 50

Chapter IV – Institutional Arrangements for PRDP-Funding 52

Map of Davao del Sur showing newly created

Davao Occidental 53

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LIST OF TABLES

Title (Table) Page

1 Land Area planted with Cacao, Region XI, CY 2013 14

2 EVSA Result for Cacao, Davao del Sur 15

3 EVSA Result for Cacao, Davao Occidental 16

4 Municipal / City Data for Cacao, Davao del Sur and

Davao Occidental, CY 2013 17

4a Existing Processors, Nurseries, Facilities and Business Enterprises

for Cacao, Davao del Sur and Davao Occidental, CY 2013 17

5 RP Cardaba Banana Production Volume, 2013 20

6 Banana Production Volume, Davao Region, 2013 20

7 Municipal / City Data for Banana (Cardaba/Saba) Davao del Sur

and Davao Occidental, CY 2013 21

7a Existing Processors, Nurseries, Facilities and Business Enterprises

for Banana 21

8 EVSA Result for Cardaba, Davao del Sur 23

9 EVSA Result for Cardaba, Davao Occidental 24

10 Key Products Produced and Traded in Mindanao Regions 26

11 Cup Lump Production: Mindanao Producing Regions, 2013 27

12 Cup Lump Production Volume and Area Planted with Rubber

Davao Region, 2013 27

13 Rubber Production Volume, Davao Region, 2013 27

14 Municipal / City Data for Rubber, Davao del Sur and

Davao Occidental, CY 2013 28

14a Existing Facilities, Nurseries, Facilities and Business Enterprises

for Rubber, Davao del Sur and Davao Occidental, CY 2013 28

15 EVSA Result for Rubber, Davao del Sur 29

16 EVSA Result for Rubber, Davao Occidental 30

17 Mindanao’s Percentage Share to RP Production 32

18 Production Volume, Davao Region, 2013 33

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LIST OF TABLES

Title (Table) Page

19 EVSA Result for Abaca, Davao del Sur 34

20 EVSA Result for Abaca, Davao Occidental 35

21 Municipal / City Data for Abaca, Davao del Sur and

Davao Occidental, CY 2013 36

21a Existing Processors, Nurseries, Facilities and Business Enterprises

for Abaca, Davao del Sur and Davao Occidental, CY 2013 37

21b Provincial / Municipal / City Data for Abaca 38

22 Cassaba Producing Regions 41

23 Cassava Production Volume, Davao Region, 2013 41

24 Municipal / City Data for Cassava, Davao del Sur

and Davao Occidental, CY 2013 42

24a Existing Processors, Nurseries, Facilities and Business Enterprises

for Cassava, Davao del Sur and Davao Occidental, CY 2013 42

24b Provincial / Municipal / City Data for Cassava 43

25 EVSA Result for Cassava, Davao del Sur 44

26 EVSA Result for Cassava, Davao Occidental 45

27 Seaweeds Production in Mindanao, 2013 47

28 Fresh Seaweeds Production Volume in Davao Region, 2013 47

29 Municipal / City Data for Seaweeds, Davao del Sur

and Davao Occidental, CY 2013 48

29a Existing Associations, Facilities, Traders in Seaweeds,

Davao del Sur, CY 2013 48

30 EVSA Result for Seaweeds, Davao del Sur 49

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LIST OF FIGURES

Title (Figure) Page

1 Soil / Land Suitability Map 9

2 Land Cover Map, Davao del Sur 10

3 Hazard Maps 11

4 Philippines and Region XI Situation 13

5 Regional Contribution to National Production Average, 2008-2012 14

6 Davao del Sur’s Cacao Production Profile in Region XI 14

7 Expanded Vulnerability and Suitability Analysis Map for Cacao,

Davao del Sur 15

8 Expanded Vulnerability and Suitability Analysis Map for Cacao,

Davao Occidental 16

9 Expanded Vulnerability and Suitability Analysis Map for Cardaba,

Davao del Sur 23

10 Expanded Vulnerability and Suitability Analysis Map for Cardaba,

Davao Occidental 24

11 Expanded Vulnerability and Suitability Analysis Map for Rubber,

Davao del Sur 29

12 Expanded Vulnerability and Suitability Analysis Map for Rubber,

Davao Occidental 30

13 Percentage Share of Philippines to Global Production, 2012 32

14 Expanded Vulnerability and Suitability Analysis Map for Abaca,

Davao del Sur 34

15 Expanded Vulnerability and Suitability Analysis Map for Abaca

Davao Occidental 35

16 Expanded Vulnerability and Suitability Analysis Map for Cassava,

Davao del Sur 44

17 Expanded Vulnerability and Suitability Analysis Map for Cassava,

Davao Occidental 45

18 Expanded Vulnerability and Suitability Analysis Map for Seaweeds,

Davao del Sur 49

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LIST OF ANNEXES

Title (Annex)
Annex 1 - Consolidated Value Chain Matrix – CACAO

Annex 2 - Consolidated Value Chain Matrix – BANANA (CARDABA/SABA)

Annex 3 - Consolidated Value Chain Matrix – RUBBER

Annex 4 - Consolidated Value Chain Matrix – ABACA

Annex 5 - Consolidated Value Chain Matrix – CASSAVA

Annex 6 - Consolidated Value Chain Matrix – SEAWEEDS

PDC EXECOM RESOLUTION NO. 1 – SERIES OF 2015

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 Republic of the Philippines
PROVINCE OF DAVAO DEL SUR
Matti, Digos City

PROVINCIAL GOVERNOR’S OFFICE

MESSAGE

The Provincial Commodity Investment Plan (PCIP) is a requirement for the Provincial
Government to avail the Philippine Rural Development Program (PRDP).

Now that this plan has come out, we can now attain the programs and projects that
would help developed our agri-fishery sector.

I do hope that what is contained in the PCIP would be materialized.

My profound gratitude to those who have contributed in conceiving this workable

commodity investment plan.

CLAUDE P. BAUTISTA
Governor

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 FOREWORD

The 2014 – 2020 Provincial Commodity Investment Plan (PCIP) contains the programs
and projects proposed for funding through the Philippine Rural Development Project (PRDP).

The coming up of this plan followed a tedious and repetitious process from value chain
analysis of the different key players of the seven (7) priority crops of Region XI, to identification
of the programs and projects by the local government units.

The plan shall serve as the Provincial Government’s direction and guide in proposing
programs and projects not only for PRDP funding but also for other funding agencies.

It is the desire of the Provincial Leadership the realization of this plan as this would
respond to the needs of the constituents of Davao del Sur.

I – PLAN Team
PPMIU

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 EXECUTIVE SUMMARY

The Provincial Commodity Investment Plan (PCIP) reflects the programs and projects
that would enhance the development of the priority commodity crops of Region XI.
As presented in the PCIP, the projects are specifically lined-up in the Intervention Matrix
per crop which are identified by the Municipal Planning and Development Coordinators,
Municipal Engineers and Municipal Agriculturists. Assisting the consultation workshops are the
Provincial Planning and Development Office (PPDO), Office of the Provincial Agriculturist
(OPAg). Provincial Engineer’s Office (PEO), Provincial Environment and Natural Resources
Office (PENRO) and the Philippine Fiber and Development Authority (PhilFIDA).
The seven (7) priority commodities which undergo Value Chain Analysis are the
following:
1. Cacao
2. Banana (Cardaba/Saba)
3. Abaca
4. Rubber
5. Cassava
6. Seaweed
7. Palm Oil

In the identification of programs and projects per crop, some LGUs opted to choose
either two (2) or the six (6) crops based on the area planted and considering that most of the
crops are planted intercropped with other major agriculture crops like coconuts, rubber and
others. For Palm Oil, the province is not included in the priority list for this commodity
considering that there was no report on data for areas planted with palm oil.
The six (6) commodities are also prioritized in this order, to wit:
1. Cacao comes first considering that this is the priority crop in Davao Region.
2. Banana ranks second as this could be intercropped with cacao and the province
being the lead in this industry in Davao Region.
3. Rubber
4. Abaca
5. Cassava
6. Seaweeds
Most of the programs and projects listed in the Intervention Matrix considered the
following priority concerns, to wit:
1. Establishment of nurseries to ensure good quality and disease-free planting
materials/seedlings.

2. Upgrading of farm-to-market roads in the key commodity producing areas.

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 3. Improve farmer’s access to skills and resources that would enable them to adopt
good agronomic practices.

4. Establishment of tissue-cultured laboratories for abaca and banana.

5. Provision of post-harvest facilities and common service facilities for chipping,

granulation, drying and others.

6. Strengthen local supply chains of organic fertilizer.

7. Provision of other infra-support facilities like fish ports, warehouse and others.

8. Establishment of demo farms to showcase benefits of the different priority crops.

9. Establishment of a pool of skilled farmers, and other key players.

10. Upgrading of value chain products of the priority commodities that can sustain
market demands both local and foreign markets.

Prioritization of the projects shall be based on the results of the Expanded Vulnerability
and Suitability Analysis (E-VSA) as to the top three (3) producing municipalities per province.
The presentation by province shall facilitate the implementation of the projects in Davao
Occidental in 2016, which is year 2 of the PRDP project. The Department of Agriculture has
already included Davao Occidental as one of the PRDP-covered provinces. But in this PCIP, it
is still included and presentation is by province: Davao del Sur and Davao Occidental.

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 INTRODUCTION

The funding support provided by the World Bank in the implementation of the Mindanao
Rural Development Program (MRDP) has supported the Local Government Units vision to boost
economic development. The program not only developed the capacities of the project
implementors through its Focal Persons/Project Coordinators, it also resulted to the
enhancement of the management skills of project beneficiaries as they are to sustain the
project. Success of MRDP are always shown on the existence and expansion of the different
projects especially on the livelihood component. It has provided additional means of income to
the project beneficiaries. While for the infrastructure components, it increased access to good
roads, potable water supply and better post harvest facilities. All these services makes MRDP a
successful program.

The replication of MRDP as PRDP or the Philippine Rural Development Project

extending the program to a national scope covering all provinces of the Philippines would be the
best strategy of the national government’s platform for agriculture. PRDP will be implemented
with the following four (4) program components, to wit:

A.) I-PLAN or Investment in Agriculture and Fishery Modernization Planning (AFMP) at

the Local and National Level;
B.) I-BUILD or Intensified Building Up of Infrastructure and Logistics for Development;
C.) I-REAP or Investment in Rural Enterprise and Agriculture and Fishery Development;
and
D.) I-SUPPORT or the Implementation support of the program.

The process of planning for PRDP is anchored on the I-PLAN component who shall
complement the National and Regional Agriculture and Fishery Modernization Plans (AFMPs)
with the Provincial Community Investment Plans (PCIPs). The PCIP shall be the principal basis
for all interventions of the I-REAP and I-BUILD components that are proposed for DA-MRDP
funding. In the formulation of the PCIP, the following shall serve as its guiding principles, to wit:

a.) The AFMP as basis for prioritizing public agriculture and fishery investments;
b.) DA-LGU partnership in the formulation of the plan to ensure smooth implementation
of all agriculture and fishery projects;
c.) Use of science based tools for resilient and sustainable agriculture and fisheries
sectors;
d.) Value chain development context for sub-project designs;
e.) Geo-tagging as an important tool in plan formulation and monitoring and evaluation
phases;
f.) Integrated service delivery through synergistic partnership; and
g.) Natural Resource Management in globally significant biodiversity areas, seascapes
and landscapes and priority degraded coastal areas.

The interplay of the PRDP components in the national and regional levels of the
Department of Agriculture shall also be adopted in the provincial level through the Provincial
Project Management Implementing Unit (PPMIU). Such scheme of implementation shall prove
the success of the program, like MRDP.

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 Chapter I

DEVELOPMENT BACKGROUND

The Provincial Development and Physical Framework Plan (PDPFP) 2007-2013 is a six-
year medium term development plan intended to coincide with the two (2) three year political
terms of the Governor and the full term of the national leadership. The planning environment of
the PDPFP includes all major sectors relevant to the development of the province which are
grouped to correspond to the five (5) core elements: population, economic activity, physical
resources, income/ access to services and land use. Analysis of the planning environment
showed four (4) major development concerns with its corresponding general development
goals, to wit:

Concerns Goals
1. High poverty incidence
To reduce poverty incidence
2. Forest degradation To conserve and rehabilitate the forest lands and
natural resources
3. Inadequacy of access To improve access to basic social services and
to basic services infrastructure facilities and utilities

4. Inadequacy of basic To enhance access and mobility for economic

infrastructure facilities productivity, food security and commodity trade
and utilities

The plan period of the PDPFP has ended in 2013. The creation of Davao Occidental
from Davao del Sur has held in abeyance its updating until 2016 Local Election when Davao
Occidental will officially function as a province. At present, Davao del Sur’s thrusts were also
redirected with the assumption of the new leadership in June 30, 2013. The issues and
concerns become a challenge to identify programs and projects which would respond to the
magnitude of the existing socio-economic situation of poverty and inadequacy.

Davao del Sur is an agricultural province bestowed with rich resources and one of the
Region XI’s top contributors as exporter of some agricultural products. Its major products
include rice, corn, coconut, cacao, banana (cardaba and cavendish), mango and a variety of
fruits and root crops substantially contribute to the income of the agriculture sector. About 68%
of the area of the province is devoted to agricultural production. Despite all efforts and funding
support collectively and collaboratively participated both by private and public entities, still the
desire to make the agriculture sector prosper was not yet fully realized especially among the
small farmers in the province. Their gainful participation are focussed on improving their
capabilities to increase productivity; access more lucrative markets; and obtain shares in
marketing and processing activities.

For the agribusiness/enterprise industry, this is usually a group endeavour either by a

cooperative or by People’s Organizations (POs). Usually, their products are sold only in the
local markets. Assisting them in the processing, financing and marketing as well as
improvement of the quality of their products are the Department of Trade and Industry (DTI),
Department of Labor and Employment (DOLE), Department of Science and Technology (DOST)
and the Local Government Units (LGUs). However, it is always observed that still they could not
qualify nor meet global demand/market. Thus, the need for them to enhance their skills and
capabilities as well as provide with adequate capital to be able to compete with the global
market.

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 Chapter II

DEVELOPMENT VISION AND FRAMEWORK OF THE PROVINCE

In the PDPFP 2007-2013, the following is its vision and mission, to wit:

VISION:
“An agri-industrialized, commercial and eco-tourism province that is socially and
economically progressive in the fields of agriculture, fishery, forestry and tourism
with a well-developed land and sea transport network; home to healthy, God-
loving empowered people rich in cultural heritage and strong commitment to the
principles of social justice, democracy and good governance, all within the
framework of sustainable development.”

MISSION:
For all stakeholders “to vigorously pursue for the social and economic upliftment
of the standard of living of its constituents through effective collaboration with all
stakeholders and sectors towards the attainment of the vision.”

Development concerns of the Provincial Government under the new leadership is

anchored on the 8 - POINT AGENDA known as DAVAO SUR (Development-Oriented
Governance, Agricultural Competitiveness, Village Empowerment, Adequate
Infrastructure, Outstanding Education, Subsidized Health Care, Upliftment of Culture
through Tourism and Rural Industrialization). Under the Agricultural Sector; Programs
and Projects are focused and redirected on the following vision, mission and other
indicators to wit:

Vision:
“An economically viable and competitive province driven by Strong Public-Private
Partnership (PPP) and corporate-oriented governance for all its constituents”

Mission:
“Reduction of Poverty by ensuring food security creating sufficient and fair job
opportunities and adopting technologies mindful of the protection of the
environment and mitigating the effects of climate change”

Objectives
General:
To boost the economy of the province from a vantage point of its
strengths:
a. The intensification of agriculture and aquatic resources
b. Pursuit of rural agri-industrialization
c. Creation of livelihood opportunities and fair employment by forging
strong and meaningful PPP agreements
d. Convergence mechanisms to execute and realize the overall
mission

Specific:
1. Improve food security and reduce, if not totally curtail, poverty
incidence in the countryside;

2. Increase the income of marginalized farmers and fisher folks;

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 3. Intensify and diversify food production in suitable areas and
encourage expansion of commercial and high value crops
production that have potential in domestic as well as international
markets;

4. Strengthen efforts on agri-industrialization to level-up agriculture

and marine products to International Standard Organization (ISO)
standards and globally competitive rank;

5. Forge sustainable Public Private Partnership (PPP) projects with

local and foreign investors on product development;

6. Continuously enhance the capacity and capabilities of the farmers

and fisherfolks to sustain their chosen livelihoods;

7. Enhance value formation among the people for them to develop a

sense of responsibility to the efforts being made by their chosen
leaders to alleviate their plight;

8. Provide coping mechanisms and promote self-reliance to enhance

the resilience of the farmers, fisherfolks and Small and Medium
Enterprises (SMEs) to the possible risks and damages that might
be brought by climate change and other unforeseen events, and

9. Augment and strictly implement policies related to sustainable

agriculture, environment thru responsive corporate governance.

Strategies:
1. Capability enhancement of stakeholders in the agriculture
production

2. Provision of infrastructure and support facilities

3. Provision of production and post harvest facilities

4. Intensity/enhance access to credit and marketing facilities

5. Intensity/ investment promotions

6. Strengthen trading agreement with local supermarkets and foreign

buyers

7. Establish strong PPP arrangements in boosting and modernizing

the agriculture and fishery sectors.

Potentials:

Davao del Sur’s topography has contributed much to agricultural production. Of

its total land area, about 65% is rolling and mountainous with ranges running southward.
It has wide fertile valleys which are found between the mountain ranges and lowland
areas. It has also narrow coastal plains rich with marine resources as the province has
ten (10) coastal municipalities namely, Sta. Cruz, Digos City, Hagonoy, Padada, Sulop,
Malalag, Sta. Maria, Malita, Don Marcelino, Jose Abad Santos and one (1) island
municipality, Sarangani. The presence of Mount Apo, known as the highest and longest
mountain range of the country also contributed to the richness of the soils of Bansalan,
Digos City and Sta. Cruz that gives bountiful harvest of fruits, vegetables and other
crops. More so, the province is predominantly lowland as about 40% of its total land area
falls within 0 – 200 meters elevation. Other are scattered within 200 meters-1500 meters
elevation. Crop productions in these areas are varied based on its suitability in elevation.

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Figure 1. Soil / Land Suitability Map

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 The province’s land resources are basically suitable for agricultural production.
Its existing major crops include coconut, mango, banana, rice, corn, sugarcane,
vegetables, rubber, coffee and abaca. The existing land use for agricultural production
would show that the province still has great potential areas for expansion, intensification
and diversification for food production.

Figure 2. Land Cover Map, Davao del Sur

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 There are minimal risks to the economic activities of the province. Most of these
are natural-made calamities. However, man-made calamities brought about by climate
change is unavoidable.

Figure 3. Hazard Map

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 The Philippine Rural Development Project (PRDP) through the implementation of
the interventions that will be outlined in the Provincial Commodity Investment Plan
(PCIP) will be a great contribution to the achievement of the goals that address to the
issues and constraints confronting the agriculture sector. Vice-versa, it will also help
realize PRDP’s goal of increasing farm production and income of the farmers.

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 Chapter III

PRIORITY COMMODITY CHAINS DEVELOPMENT

I - A.) COMMODITY PROFILE: CACAO

Cacao is an important crop around the world: a cash crop for growing countries
and a key input for processing and consuming countries. Philippines grows cacao as
well as produces and consumes chocolate-based products. Cocoa travels along a global
supply chain and its demand in the global market are high. However, cacao producing
countries are unable to meet the growing demand for cocoa products worldwide. The
Philippines itself is a net importer of cocoa products, and the value chain study for cacao
showed that the trade deficit is increasing at about 15% per annum. The National Cacao
Industry Plan of the Department of Trade and Industry suggests that for the country to
belong to the group leading in the production of cacao, it has to produce 100,000 metric
tons of dried beans by 2020. By that year, the worldwide demand for cacao would reach
up to 5 million metric tons or an increase of area planted to cacao by 15,000 hectares to
17,000 hectares.

Figure 4. Philippines and Region XI Situation

* The country is a net importer of cacao with a strong domestic demand.
* Philippine merchandise exports and imports of cacao (in US Million Dollars)

120
102.67
100
88.37

80

60 55.49 Imports
46.03 Exports
40 39.84

20
3.54 3.57 3.24 5.24 5.4

0
2007 2008 2009 2010 2011

The top five (5) confectionery companies that dominate the cocoa and chocolate
supply chain in the country are the following:
1. Mars Inc. of USA;
2. Modele’z International Inc. of USA;
3. Barcel SA, Division of Group Bimbo of Mexico;
4. Nestle SA of Switzerland; and
5. Meiji Co. LTD of Japan

Mars Incorporated through its agent the Kennemer Foods, Inc. is also an active
player of the cacao producing municipalities of Davao del Sur.

The entry of the above-cited large volume buyers of cocoa bean provides the
platform for market-driven upgrading of the cocoa sub-sector.

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 In the commodity prioritization study conducted by the Department of Agriculture XI,
cacao ranked first considering that Davao Region was identified as the number one (1)
cacao producing region based on area planted and production. The four (4) provinces
and one (1) city of Davao Region also showed as the top first five of the top 10 Cacao
producing provinces in Mindanao, contributing 72%.

Figure 5: Regional Contribution to National Production Average 2008-2012

In Davao Region,
Northern Eastern Visayas Davao del Sur had the
Eastern Visayas Mindanao
ARMM 2% 9% largest area planted but this
2%
Others Northern has shrunked to a negligible
Zamboanga 12% Mindanao level due to low prices and
Peninsula
3% Davao Region high cost of production that
entice farmers to switch to
Zamboanga other high value crops where
Peninsula they could expect to get
Davao Region
ARMM better returns/income. Davao
72%
City ranks second with
Others Davao Oriental having the
lowest area planted with
cacao.

Figure 6: Davao del Sur’s Cacao Production Profile in

Region XI

Table 1: Land Area planted with Cacao

Region XI, CY 2013
Davao del
Sur 1,829.56
Province Area Planted (in
hectares) Davao City
Davao del Norte 1,045 4,441.25
COMVAL
Davao del Sur 1,355 1,839.20
Davao Oriental 892
Compostela Valley 549
Davao City 1,352
Davao Davao del
Source: BAS
Oriental Norte
670.24 4,372.48

For the whole province of Davao del Sur, Sta. Maria has the largest area planted with
cacao, followed by Magsaysay and Malita. But in the Expanded Vulnerability and Suitability
Analysis (E-VSA), the presentation is already divided into two (2) province: Davao del Sur and
Davao Occidental with the considerations that the latter will officially take off as a province in the
midst of the PRDP implementation. For Davao del Sur, the top three (3) cacao producing
municipalities are Magsaysay, Bansalan and Sta. Cruz, while for Davao Occidental, Sta. Maria
still leads with Malita and Don Marcelino as the top three (3) cacao producing municipalities.

As for suitability analysis, in Davao del Sur, Kiblawan ranks first. Although its area
devoted to cacao is only 38 hectares, followed by Magsaysay and Sulop. While for Davao
Occidental, Sta. Maria, Malita and

14
Sarangani are the three (3) ranking municipalities suited for cacao production.

Figure 7.

15
 Figure 8.

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 Table 4. Municipal/City Data for Cacao, Davao del Sur and Davao Occidental, CY 2013

Province/ Area Production No. No. of % No. Area No. of

Municipality/ Planted Volume of Farmer of Farmers that Expansion
City/Province (Metric Farmers Groups are member Processors
Tons) of Farmer
groups
Davao del Sur
Bansalan 103 10.90 313 25 288 92% 126 2
Digos City 15 - 50 - - - 515 -
Hagonoy 1 - 2 - - - - -
Kiblawan 38 29.00 75 - - - 750 -
Magsaysay 199 122.56 544 22 400 73.5% 650 -
Malalag 25 12.60 175 - - - 100 -
Matanao 12 - 20 - - - 500 -
Padada 7 - 30 - - - 85 -
Sta. Cruz 61 17.64 429 - - - 205 1
Sulop - 0.90 9 72 - - 53 -
Davao Occidental
Don 46 - 120 - - - 20 -
Marcelino
Jose Abad - - 25 - - - 50 -
Santos
Malita 173 172.75 264 3 100 37.9% 1,320 -
Sarangani 1 - 1 - - - 1,200 -
Sta. Maria 545 514.80 416 5 300 72.1% 655 2
Total: 1,226 881.15 2,473 127 1,088 275.5% 6,229 5
Source: MAO/OPAG

Table 4a: Existing Processors, Nurseries, Facilities and Business Enterprises for Cacao
Davao del Sur and Davao Occidental, CY 2013

Municipality Processors Business Enterprise/ Name of

Province Existing Plant Nursery/ Location Facilities
/ City No. Location Traders
Davao del Sur
Bansalan ND Foods, Pob. Pob. 1&2, Sitio Banikanhon Tablea Processing Facilities
2
Bansalan
Digos City OPAg cmpd, Digos
Hagonoy
Magsaysay San Isidro, Magsaysay
Matanao MAO office, Matanao
Padada 1 MAO office, Padada
Sta. Cruz Zone II, Sta. Cruz Zone II – 2 units all weather
cacao drier
Kiblawan Poblacion, Kiblawan
Sulop Poblacion, Sulop
Don MAO office, Don Marcelino
Marcelino
Malalag MAO office, Malalag
Davao Occidental
Jose Abad MAO office, JAS
Santos
Malita -Ticulon & Near Mun. Gym, Malita MARWABEMPCO-fermentation Buy & sell of fresh cacao beans
boxes, cacao solar boxes
-Kilalag Upland Farmers Ass’n -Mr. Lumain, Kidalapong, Lacaron
(KUFA) & Pangian
-Silangan Farmers Ass’n. (SFA) -Alex Camahalan, Felis, Malita
-Romeo Casanjuan -Boy Pardo, Lacaron, Malita
-Alex Camajalan -MARWABEMPCO
-Gilberto Amarillo -Saturnino C. Parcasio Jr.
-Richard Magalig
Saranggani -MAO office, Saranggani
Sta. Maria Back of Mun. Hall, Sta. Maria UNICARBAI MPC – 1 unit cacao Buy & sell fresh cacao beans
2 UNICARBAI
shredder
Tablea Processing 24 units fermentation boxes Tie-up with KENNIMER
Basiawan, Sta. 1 unit cacao solar dryer Food International, D/C
Maria
SDMC-1 unit cacao shredder
Tablea processing facility
PKEARBAI MPC,
tablea processing,
Basiawan
Total

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I - B.) INVESTMENT PLAN:

Cacao production in Davao del Sur’s decreasing trends is still the recent
situation of the industry. The main cause for this decrease is the low price and
the high cost of production which resulted to a chain most farmers adopt i.e. to
convert cacao areas to other high value crops. Old cacao trees were also cut and
converted to other crops.

However, with the entry of large confectionary companies in the province,

farmers are starting to plant cacao as intercrop to coconut, banana and others.
Most of the 68% agriculture land of the province is suitable to cacao considering
the environmental conditions and the richness of the land resources. It has about
6,229 targeted for expansion.

The Value Chain Analysis and Competitiveness Strategy Studies

conducted by DA XI showed that the main areas of convergence of interest
among the cocoa value chain players and focal objectives to be achieved in
order to foster competitiveness and sustainability are the following:

1. Improved access to and availability of affordable and good quality

planting materials.

2. Improved access to and availability of fertilizers and inputs

appropriate for cacao smallholders.

3. Increased areas planted to cacao

4. Improved flow and quality of extension services for cacao farming and
adoption of good practices.

5. Increased capacity and improve ability to produce cocoa beans of

consistent quality as per market standards.

6. Improved cooperation and organizational capacity of farmers.

7. Improved physical linkages to inputs and support markets.

8. Improved/Rehabilitated farm-to-market roads in key cacao production

areas.

The achievement of the above-cited objectives requires a collaborative

undertaking among all players and stakeholders in the cocoa bean industry in
Davao del Sur. Value chain development shall be focussed on helping these
players link with and competes in the global markets. This would also link the
smallholders to more viable economic opportunities and increase their benefits
from market participation.

The interventions identified by the different Local Government Units

(LGUs) of the province are expected to assist the cacao players and
stakeholders to access to a wider range of services and inputs.

The proposed programs and projects are expected to eliminate or lessen

the constraints in the value chain development from provision of technical skills
and services to accredited nurseries as sources of good planting materials
capacitation of farmers and other stakeholders through trainings, establishment
of organic inputs production facilities; provision of infra support facilities and post
harvest facilities and establishment of demo farms.

18
 The collaborative efforts of all stakeholders of cacao industry which is
supported by all local government units will surely boost Davao del Sur’s cocoa
bean industry.

I - C.) CONSOLIDATED VALUE CHAIN MATRIX: CACAO (refer to Annex 1)

19
II - A.) COMMODITY PROFILE: BANANA (Cardaba/Saba)

Banana is a crop that can substitute rice as main staple food. There
are numerous cultivars under our cooking bananas such as cardaba, abutan,
inabaniko, sabang, puti, mundo, gubno, saba sa hapon and bigihan.
However, the most common cultivar with both social and economic
importance is the cardaba or saba. Its flesh is white, starchy and fine
textured, which make it ideal for cooking and processing.

Banana Cardaba is grown in backyards of rural households and in

small farms as it grows in nearly all kinds of soil although there are other
considerations needed like deepness, drainage, aeration and others. It is also
less labor-intensive than many other crops. Among its by-products are
banana chips, banana snack food, deserts, flour and other value adding
products of banana.

Banana is the 8th most important food crop in the world and the 4th
most important in the least developed countries. It is produced in 135
countries and territories. Majority of its producers are small holder farmers
who grow the crop either for home consumption or for local markets.

The Philippines is the only producer of cardaba banana. Other

countries have their own local cooking banana varieties. In 2013, Philippine
cardaba banana production was 2,556.986.05 MT with Mindanao’s share to
national production placed at 60%.

Table 5. RP Cardaba Banana Production Volume, 2013

Island Production Volume (in % Share to RP

MT) Production
Luzon 535,180.73 21%
Visayas 496,472.67 19%
Mindanao 1,525,332.65 60%
Total 2,556,986.05
Source: BAS

In Mindanao, the top 3 producing provinces in 2013 are North

Cotabato, Davao del Sur and Lanao del Norte. Davao del Sur caters to
banana chips exporters while North Cotabato and Lanao del Norte penetrate
the fresh retail markets. Davao Region has the largest area planted to
cardaba banana among the other banana producing provinces in Mindanao.

In Davao Region, Davao del Sur has the biggest production volume,
followed by Compostela Valley, Davao Oriental, Davao del Norte and Davao
City.
Table 6: Banana Production Volume, Davao Region, 2013
Province Production Volume (in MT)

Davao del Norte 47,720.46

Davao del Sur 271,165.41
Davao Oriental 72,826.01
Compostela Valley 74,201.17
Davao City 21,520.08
Total 487,433.13
Source: BAS

20
 In Davao del Sur, the top 3 producing municipalities in 2013 are
Magsaysay, Malita and Malalag. Its total area planted with banana is 7,787
hectares with 57,915.82 MT production volume. It has potential area of 3,605
hectares as targetted by the different agriculture offices in the province.

Table 7. Municipal/City Data for Banana (Cardaba/Saba), Davao del Sur and Davao
Occidental, CY 2013

Provincial/ Area Production No. No. of % No. Area No. of

Municipality/ Planted Volume of Farmer of Farmers that Expansion
City (Has.) (Metric Farmers Groups are member Processors
Tons) of Farmer
groups
Davao del Sur
Bansalan 296 3557.30 647 25 574 88.7% 100 -
Digos City 300 2998.00 318 2 130 40.9% 305 1
Hagonoy 76 446.69 133 1 25 19% 55 -
Magsaysay 1499 7998.69 2812 22 1968 70% 300 -
Matanao 612 5542.52 1555 2 60 4% 500 -
Padada 245 1173.60 250 1 31 12% 50 1
Sta. Cruz 547 1982.40 672 3 90 13% 430 2
Kiblawan 535 3780.36 563 1 35 6% 75 1
Malalag 711 4977.00 2306 - - - 535 -
Sulop 652 2434.76 1067 1 40 4% 25 -
Davao Occidental
Don 235 2200.00 691 1 60 13% 44 -
Marcelino
Jose Abad 190 396.70 214 1 30 14% 31 -
Santos
Malita 1270 15240.00 1324 20 600 45% 1055 -
Sarangani 177 353.00 458 - - - 50 -
Sta. Maria 442 4844.80 552 1 30 5% 50 3
Total: 7787 57,915.82 13,562 81 3,673 334.6% 3, 605 8
Source: MAO/OPAG

Table 7a. Existing Processors, Nurseries, Facilities and Business Enterprises for Banana
(Cardaba)
Municipality / Processors Existing Plant Nursery/ Business Enterprise / Name
Province Facilities
City No. Location Location of Buyer / Trader
Bansalan Lao Integrated Farm, Eman,
1 Pob. 1 & 2 (Sitio Banikanhon)
Bansalan
Digos City Double “S” Banana Chips, Tres Mini Banana Chipper &
1 OPAg compound, Digos
de Mayo, Digos Banana processing facilities
Hagonoy Banana chips, Lanuro, Hagonoy
1
(BFT)
Magsaysay San Isidro, Magsaysay
DAVAO DEL SUR

Matanao MAO Office, Matanao

Padada KF Nutri Foods, Lower Limonzo, Banana Chipper & Banana
1 MAO Office, Padada
Padada processing facilities
Sta. Cruz Prime Banana Plant, Zone IV, Zone 2, Sta. Cruz
Sta. Cruz Banana Processing Plant Buy & Sell Fresh Banana
GSL Enterprise, Zone IV, Sta. Loreta Huerbana & Albert
3
Cruz Banana Processing Plant Panilla
Ninestar Banana Chips
Processing, Coronon Banana Processing Plant
Kiblawan Banana Chipping Machine,
1 PAFBUF MPC, Passig, Kiblawan Poblacion, Kiblawan
Stainless blade, Chimney
Sulop Poblacion, Sulop
Malalag 1 Banana Chips, Malalag RIC MAO Office, Malalag Banana Processing Facilities
Don Marcelino MAO Office, Don Mar
Jose Abad
MAO Office, JAS
OCCIDENTAL

Santos
DAVAO

Malita Ticulon, Malita Banana Processing Facilities Buy & Sell Fresh Banana
-Arcelo Balasila, Esther
1 Banana Chips, Malita RIC
Florentino
-MARWABEMCO
Saranggani MAO Office, Saranggani
Sta. Maria Back of Mun. Hall, Sta. Maria
Total 10

21
 In the E-VSA result, presentation of data is divided into two (2) provinces.
For Davao del Sur, Magsaysay, Malalag and Matanao are the top three (3)
banana cardaba producing municipalities and for Davao Occidental, Malita,
Sta. Maria and Jose Abad Santos. As to suitability analysis, Magsaysay,
Kiblawan and Malalag are the top three (3) municipalities suitable for banana
cardaba. While for Davao Occidental, Malita, Sta. Maria and Saranggani.

22
 Figure 9.
EXPANDED VULNERABILITY &
SUITABILITY ANALYSIS MAP
for CARDABA

23
 Figure 10.
EXPANDED VULNERABILITY &
SUITABILITY ANALYSIS MAP
for CARDABA

24
 II - B.) INVESTMENT PLAN:

The Focus Group Discussion (FGD) conducted by DA XI showed that

transactions within the various marketing channels of cardaba banana occur
through negotiations between the farmers and the buyers and payment is
usually done through cash. It is on this direction that interventions to support
the banana industry should be considered by all stakeholders.

Prioritization and ranking of intervention strategies was set by the

stakeholders as guide in the identification of programs and projects in the
following order of priority, to wit:

1. Improve farmers access to skills and resources that could enable

them to adopt good agronomic practices parallel to ensuring that there
are sufficient market-based incentives to facilitate chain wide
upgrading.

2. Strengthen supply and demand for certified/accredited organic

fertilizer parallel to ensuring that there are sufficient market-based
incentives to facilitate chain wide upgrading.

3. Strengthen local capacity to commercially produce and distribute high

yielding and disease resistant planting materials.

4. Upgrading of existing processed products and development of related

products that Mindanao can sustain as a marketing proposal in the
domestic market with a view of laying the ground work for export
sales.

5. Construction and/or upgrading of farm to market roads.

6. Improve capacity of enterprises to comply with GMP/HACCP and

sustainable production practices.

7. Development and/or upgrading of marketing infrastructure to enhance

collective marketing and bulk storage.

The possibility of expanding the areas planted by banana is very feasible

if given the appropriate support using PPP as a strategy. More so, because
Davao del Sur has vast agricultural land and cardaba banana could be
intercropped by all other existing crops. With all these efforts, Davao del Sur
could aimed to become the number one cardaba banana producing province in
Mindanao.

As to prioritization of the province, this crop is ranked second to Cacao,

considering that these crops could be intercropped. Thus, projects identified in
the PCIP could support both the Cacao and Banana Industry.

II - C.) CONSOLIDATED VALUE CHAIN MATRIX: BANANA CARDABA

(refer to Annex 2)

25
III – A.) COMMODITY PROFILE: RUBBER

Rubber is a tropical crop that produces “white milky fluid” from its
trunk called latex. This latex are processed by manufacturers who converted
the raw rubber into the following value added products, to wit:

a.) Automotive products (tire, fanbelt, radiator, hose and others)

b.) Industrial products (conveyor belt, rubber roller and others)

c.) Consumer products (footwear, mattresses, gloves, toys,

Hygienic products and others)

The tire industry is the largest consumer of natural rubber accounting

to about 80% of the global consumption of natural rubber. It is considered
eco-friendly and superior in quality as compared with synthetic rubber
whereby it displays a phenomenal increase. Key products produced and
traded by Mindanao rubber industry are cup lumps, crumb rubber, crepe
rubber and rubber sheets. At present, there is only one company in Mindanao
who produces finished products: boots/footwear, which are exclusively sold
for export markets.

The total world natural rubber production in 2012 was 11,445 MT

coming from the Top 10 Natural Rubber Producing Countries where
Philippines ranked 9th contributing only 1% of the world production.

Table 10: Key Products Produced and Traded in Mindanao Regions

Region Cup Crumb Crepe Rubber Latex Finished
Lump Rubber Rubber Sheet Rubber Product
Zamboanga Peninsula     
Northern Mindanao     
Davao Region 
Soccksargen    
Caraga    
ARMM    
Legend
 Established product  Start-up/For establishment
Source: KII/FGD/Past Studies

In Mindanao, Zamboanga Peninsula had the biggest production in

2013 among the five (5) rubber producing regions with Davao Region and
Caraga contributing 2% of the Mindanao Production. Among the regions in
Mindanao, only Davao Region produces cup lump.

26
Table 11: Cup Lump Production: Mindanao Producing Regions, 2013
Region Production Volume % to Regional
(in MT) Production
Zamboanga Peninsula 195,357.03 44%
Northern Mindanao 11,261.00 3%
Davao Region 8,240.00 2%
SOCKSARGEN 172,953.92 39%
Caraga 10,030.83 2%
Total Mindanao 444,676.92 99.97%
Source: BAS

In Davao Region, Compostela Valley has the highest production

volume, followed by Davao del Sur, Davao City, Davao del Norte and Davao
Oriental. In terms of area planted with rubber, Davao del Sur tops.

Table 12: Cup Lump Production Volume and Area Planted with Rubber, Davao
Region, 2013

Province/City Production Volume (in Area Planted (in

MT) hectares)
Davao del Norte 1,111.79 581
Davao Oriental 41.10 155
Davao del Sur 2,560.92 1,300
Compostela Valley 2,997.41 1,173
Davao City 1,529.58 324
Total 8,240.80 3,533.00
Source: BAS

Davao del Sur is the number 10 of the Top 10 Provinces in

Mindanao in terms of Average Yield per Hectare with Lanao del Sur at the
top.

Table 13: Rubber Production Volume, Davao Region, 2013

Province Average Yield

1.Lanao del Sur 5.18

2.Davao City 4.72
3.North Cotabato 4.65
4.Zamboanga del Sur 4.47
5.Misamis Occidental 3.25
6.Compostela Valley 2.56
7.Zamboanga City 2.47
8.Zamboanga del Norte 2.25
9.Zamboanga Sibugay 2.08
10.Davao del Sur 1.97
Source: BAS

In Davao del Sur, Bansalan has the largest area planted with
rubber with Hagonoy and Kiblawan having the least number of hectares
planted with rubber. In total, the province has identified a total of 4,720
hectares as potential areas for rubber.

27
 Table 14: Municipal/City Data for Rubber Davao del Sur and Davao Occidental CY 2013

Provincial/ Area Production No. No. of % No. Area No. of

Municipality/ Planted Volume (Metric of Farmer of Farmers that are Expansion Processors
City (Has.) Tons) Farmers Groups member
of Farmer groups
Davao del Sur
Bansalan 1,341 11,748.90 895 21 679 75.9% 550 -
Digos City 450 34.79 430 1 100 23.3% 410 -
Hagonoy 5 - 1 - - - - -
Magsaysay 947 3,621.70 882 15 529 60.0% 600 -
Matanao 115 9.50 230 2 100 43.5% 50 -
Padada 9 - 6 - - - - -
Sta. Cruz 123 5.57 291 2 60 21% 365 -
Kiblawan 5 Newly Planted 5 - - - - -
Malalag 46 - 508 1 100 19.7% 650 For
verification
Sulop 38 Newly Planted 98 - - - 30 -
Davao Occidental
Don Marcelino 133 Newly Planted 176 6 - 92% 300 -
Jose Abad 10 Newly Planted 15 - - - 20 -
Santos
Malita 420 - 338 1 -200 59.2% 1,445 -
Sarangani 12 0.80 5 - - - 300 -
Sta. Maria 64 0.50 55 - - - - -
Total: 3,718 15,421.76 3,935 49 1,768 394.6% 4,720 -
Source: MAO/OPAG

Table 14a. Existing Facilities, Nurseries, Facilities and Business Enterprises for Rubber
Davao del Sur and Davao Occidental, CY 2013
Municipality / Processors
Province Existing Plant Nursery/ Location Farmers’ Association List of Traders, Buyers, Assemblers
City No. Location
Bansalan SAFACO, Darapuay, Bansalan SAFACO, Darapuay, Bansalan
ARMCO, Alegre, Bansalan ARMCO, Alegre, Bansalan
-Marber, Bansalan KMPC, Kinuskusan, Bansalan KMPC, Kinuskusan, Bansalan
N/A
-Ms. Mabandos, Mabunga, Bansalan DLSA Coop, Anonang, Bansalan DLSA Coop, Anonang, Bansalan
Rosalino Lao, Eman, Bansalan
Mr. Gerona, Kinuskusan, Bansalan
Digos City
Hagonoy
Magsaysay Municipal Nursery, San Isidro, Lomer Abordo, Tacul, Magsaysay
Magsaysay Marlyn Saraum, Tacul, Magsaysay
Silverio Torate, Tacul, Magsaysay
Genghiz Ganad, Tacul, Magsaysay
Alegre Catigan, Upper Bala,
DAVAO DEL SUR

Magsaysay
Dennis Eulogio, Upper Bala,
Magsaysay
Urbano Daugdaug, Upper Bala,
Magsaysay
Virgie Aradillos, Bala, Magsaysay
Bonifacio Colata, Upper Bala,
Magsaysay
Matanao AIFA, Asinan, Matanao CUIFA, Colonsabac, Matanao
SALIFA, Saub, Matanao
CUIFA, Colonsabac, Matanao
DOFAWA, Dongan Pekong, Matanao
SUFA, Savoy, Matanao
MALCARA, Towak, Matanao
IPAMCO, Asbang, Matanao
Padada
Sta. Cruz JOFIRA Nursery, Jose Rizal, S/C
Kiblawan
Sulop
Malalag
Don Marcelino
OCCIDENT

Jose Abad
DAVAO

Santos
AL

Malita Mr. Tobias Gorit, Poblacion, Malita Mr. Tobias Gorit, Poblacion, Malita
Saranggani
Sta. Maria
Total

E-VSA result conducted by DA XI presents the data by province. For

Davao del Sur, Bansalan, Magsaysay and Digos City are the top three (3)
producing municipalities of rubber. While for Davao Occidental, Malita, Don
Marcelino and Sta. Maria. As to suitability analysis, in Davao del Sur,
Bansalan, Magsaysay and Kiblawan are the top three (3) municipalities
suitable for rubber production. And for Davao Occidental, Malita, Sta. Maria
and Saranggani.

28
 Figure 11.
EXPANDED VULNERABILITY &
SUITABILITY ANALYSIS MAP for
RUBBER

29
 Figure 12.

30
 III - B.) INVESTMENT PLAN:

Rubber is usually marked as cup lumps, crumb rubber and crepe rubber
and this is usually sold by farmers to local agents, municipal and provincial
traders. Big owners of rubber plantations sold directly their product to rubber
processing plants. In the barangays, farmers sell their cup lumps to
cooperatives who are consolidators of the product, who in turn, sold this to
processing plants.

The chain of market affects the price of the commodity and this is
where focus is needed to look into identification of programs and projects
needed to develop rubber industry. Interventions identified during the
Value Chain Analysis workshop conducted by DA XI should be
considered by rubber producing LGUs.

In the ranking and prioritization of Intervention Strategy, Davao del

Sur rubber stakeholders have prioritized in this order:

1. Improvement of flow of extension services and adoption of

good agricultural practices/sustainable farming practices.
2. Improvement of tapping quality and productivity.

3. Promotion of cost-effective fertilizer management and

application and the complimentary use of organic fertilizer.

4. Upgrading of farm-to-market roads.

5. Development of capacity of collective groups to provide milling

and trading services.

6. Development of local capacity to commercially produce and

distribute certified budded planting materials of high yielding
rubber clones.

7. Promotion of ethical and responsible trading relationship and

development of traceability system.

8. Development of capacity of farmers to incrementally associate,

collaborate and coordinate to achieve economies of scale in
their transactions and to become attractive to large buyers.

The prioritization of the interventions by the stakeholders of rubber

should be considered by planners in order to identify clearly the projects
that would respond to their needs. The support that would be given by the
government entities are expected to improve and enhance rubber
industry.

III - C.) CONSOLIDATED VALUE CHAIN MATRIX: RUBBER

(refer to Annex 3)

31
IV – A.) COMMODITY PROFILE: ABACA

Abaca is a species of banana which is a native commercial crop to the

Philippines. The plant has a great economic importance, being harvested for its
fiber, known worldwide as the “Manila Hemp”, which is extracted from the leaf-
stems. The abaca fiber is superior over all other natural fibers because of its
great strength and its resistance to the action of water.

Figure 13: % Share Of Philippines to Global Production, 2012

Philippines is
the world’s top
producer and
exporter of abaca. In
2012, it contributes
about 85% of the
world production.

Source: BAS

In the Philippines, abaca is widely grown in 56 provinces and in 2013 its

production volume reached 64, 951.60 MT of abaca fiber. Of this production,
34% was supplied by Mindanao cluster, 37% by Luzon and 29% by Visayas.

Table 17: Mindanao’s Percentage Share to RP Production

Region Production Volume (in % Share to RP
MT) Production
Luzon 24,340.29 37%
Visayas 18,753.28 29%
Mindanao 21,858.03 34%
Zamboanga Peninsula 589.54 1%
Northern Mindanao 2,243.88 3%
Davao Region 7,268.63 11%
Soccksargen 953.65 1%
Caraga 5,827.89 9%
ARMM 4,974.44 8%
Philippines 64,951.60 100%
Source: BAS

In Davao Region, Davao del Sur ranks second with Davao Oriental in
terms of Production Volume in 2013 with the following data, to wit:

32
Table 18: Production Volume, Davao Region, 2013

Province Area Planted (in

hectares)
Davao del Norte 233. 40
Davao del Sur 3,067.33
Davao Oriental 3,484.41
Compostela Valley 459.62
Davao City 23.87
Source: BAS Total: 7,268.63

In Davao del Sur, Malita has the largest area planted with abaca with
7,273.30 hectares. The second largest area, Don Marcelino, is way behind with
only 803.30 hectares. The rest of the municipalities have devoted 10 hectares to
700 hectares only for abaca. However, the Agriculture Offices of the different
LGUs have identified potential areas that can be grown with this commodity and
it has reached to 19,000 hectares. The bulk of the expansion area still comes
from Malita. Assisting the farmers as to technology is Philippine Fiber
Development Authority (PhilFIDA). However, the Department of Labor and
Employment (DOLE) has also provided facilities like stripping machines and
others to abaca cooperatives and associations in the province.

In the Expanded Vulnerability and Suitability Analysis (E-VSA),

presentation of data is already segregated by province. For Davao del Sur, it
showed that the top three (3) abaca producing municipalities are Sta. Cruz,
Bansalan and Digos City. While for Davao Occidental, Malita, Don Marcelino and
Jose Abad Santos are the top three (3) abaca producing municipalities. As to
suitability analysis for abaca, in Davao del Sur, Kiblawan, Bansalan and Sulop
are the top 3 municipalities suited for abaca. And for Davao Occidental, Malita,
Sta. Maria and Saranggani.

33
 Figure 14.
EXPANDED VULNERABILITY &
SUITABILITY ANALYSIS MAP
for ABACA

34
 Figure 15.
EXPANDED VULNERABILITY &
SUITABILITY ANALYSIS MAP
for ABACA

35
Table 21: Municipal/City Data for Abaca, Davao del Sur and Davao Occidental, CY 2013

Municipality/ Area Production No. No. of % No. Area No. of

City Planted Volume of Farmer of Farmers that Expansion
(Has.) (Metric Farmers Groups are member Processors
Tons) of Farmer
groups
Davao del Sur
Bansalan 486 264.25 1,025 4 174 17% 1,500 1
Digos City 75 40.53 117 1 72 62% 1,500 -
Hagonoy - - - - - - - -
Kiblawan 46 25.24 131 3 97 74.0% 700 1
Magsaysay 14 7.82 31 - - - 500 -
Malalag 14 7.74 29 - - - 300 -
Matanao - - - - - - - -
Padada - - - - - - - -
Sta. Cruz 574 312.13 947 3 129 13.6% 1,500 -
Sulop - - - - - - - -
Davao Occidental
Don 803 437.01 1,284 - - - 3,500 -
Marcelino
Jose Abad 694 377.52 1,229 - - - 3,500 -
Santos
Malita 7,273 3,956.65 4,467 1 30 0.67% 5,000 -
Sarangani 11 5.79 35 - - - 500 -
Sta. Maria 613 333.49 1,307 - - - 1,500 -

Total: 10,603 5,768.17 10,602 12 502 4.73% 20,000 2

Source: FIDA * Include all varieties of abaca (Tangongon, Bungolanan, Maguindanao, Liboton, Daratex, etc.)

Marketing abaca fibers are usually coursed through the cooperatives as consolidators
who also sold these fibers to local traders/outlets.

36
 Table 21a: Existing Processors, Nurseries, Facilities and Business Enterprises for Abaca, Davao del Sur and Davao Occidental, CY 2013

Processors Existing Plant Nursery

Province Municipality/City Facilities Farmers Association List of Traders Class
No. Location /Location
Bansalan 1 Tribal Women’s Mobile stripping machine – -Altavista People’s Association (ALPEA), Altavista -MAFAMCO, Malupo, Anonang, Bansalan D
Weaver’s MAFAMCO, Malupo, Anonang, -Tribal Women Veavers’ Ass’n. (TWWA), Bitaug -MELBA NUYAD, Villa Doneza, Bansalan C
Association, Bansalan -Bitaug Agricultural Workers Ass’n., Bitaug -Ruel Mahiling, Curvada, Bansalan D
Bitaug, Bansalan -Pederson Agri-Trading, Bansalan C
-Nelson Andao, Poblacion, Bansalan D
-ALPEA, Altavista, Bansalan D
Digos City Mobile Stripping Machine – B- -B-Man Cooperative, Binaton, Digos -Royelo Lezada, Kapatagan, Digos D
Man Community Coop., Binaton, -Bernadette Aquino, Kapatagan D
Digos -B-Man Cooperative, Binaton, Digos D
-Ronald Angga, Kapatagan, Digos A
-Marites Montez, Kapatagan, Digos D
DAVAO DEL SUR

-Analyn Rocacorba, Luna St., Digos D

-Joseph Panes, Kapatagan, Digos D
-Fatima Sultan Esmail, Crumb St., Digos D
-Marilyn Hidalgo, Kapatagan, Digos D
Hagonoy
Magsaysay
Matanao
Padada
Sta. Cruz Tudaya Falls Farmers Ass’n, Mobile Stripping Machine, Tudaya -Tudaya Falls Farmers’ Ass’n. Tudaya, Sibulan -Ben Gomia, Astorga, Sta. Cruz D
Tudaya, Brgy. Sibulan, Sta. Falls Farmers’ Ass’n., Sibulan -Tibolo Abaca Farmers’ Ass’n (TAFAS), Tibolo -Pepito Ado, Tudaya, Sibulan, Sta. Cruz D
Cruz Cooperator Mr. Dennis -Mt. Apo Ancestral Domain Community Farmers Ass’n. -Dennis Amad, Tudaya, Sibulan D
Amad (MADCOFA), Tudaya, Sibulan -Jocelyn Pili, Tudaya, Sibulan, Sta. Cruz D
Kiblawan 1 Tribal Handicraft -Kimlawis Farmers’ Ass’n. (KFA), Kimlawis
Makers’ Ass’n., -Bololsalo Abaca Farmers’ Ass’n. (BAFA), Bololsalo
Kiblawan, Davao -Tacub Tribal Women’s Ass’n. (TIWA), Tacub
del Sur -Balasiao Integrated Social Forestry Ass’n., (Balasiao)
Sulop
Malalag
-Baning Ismail, Dalupan, Don Marcelino D
-Renato S. Bautista, Dalupan, Don Marcelino D
DAVAO OCCIDENTAL

Don Marcelino
-Loreto I. Aradani, Dalupan, Don Marcelino D
-Noe Arcilla Jr., Poblacion, Don Marcelino D
Jose Abad Santos
-Alberto Mante, Lagumit, Malita A
-Raul Barrios, Lagumit, Malita A
-LRM Fiber Marketing/Larry Matalandang,
Malita
Poblacion, Malita A
-Emelie Bajenting, Poblacion, Malita D
-Roy Paquera, Little Bagiuo, Malita D
Saranggani
Sta. Maria -Ramilo Tiwo, Sta. Maria D
Total
Source: FIDA, Digos City

Table 21b: PROVINCIAL / MUNICIPAL / CITY DATA FOR ABACA

37
 Producti % no. of Processors
Area Number No. of Area for
Municipality on Farmers that Existing Plant nursery Class
Province Planted of Farmer expansion Facilities Farmers Association List of Traders
/ City Volume are members of No. Location location
(Has.) Farmers Groups (has.)
(mt) farmer groups
-Malupo Abaca Farmers Coop, Bansalan D
Tribal Women’s -Melba Nuyad, Villa Doneza, Bansalan C
Mobile Stripping Machine- Altavista’s People’s Ass’n. (ALPEA), Altavista –
Weavers Ass’n. -Ruel Makiling, Curvada D
Bansalan 485.80 264.25 1025 4 174 17% 1500 1 MAFAMCO, Malupo, Tribal Women Weavers Ass’n. (TWWA), Bitaug
Bitaug, -Pederson Agri-Trading, Bansalan C
Anonang, Bansalan – Bitaug Agricultural Workers’ Ass’n., Bitaug
Bansalan -Nelson Andao, Poblacion, Bansalan D
-Altavista People’s Ass’n. Bansalan D
-Royelo Lezada, Kapatagan, Digos City D
-Bernadette Aquino, Kapatagan, Digos D
-B-Man’s Community Coop., Binaton, Digos D
Mobile Stripping Machine –
-Ronald Angga, Kapatagan, Digos A
B-Man Community
Digos City 74.50 40.53 117 1 72 62% 1500 -B-Man Cooperative, Binaton, Digos City -Marites Montez, Kapatagan, Digos D
Cooperative, Binaton, Digos
-Analyn Rocacorba, Luna St., Digos D
City
-Joseph Panes, Kapatagan, Digos City D
DAVAO DEL SUR

-Fatima Esmail, Crumb St., Digos City D

-Marilyn Hidalgo, Kapatagan, Digos D
Hagonoy
Magsaysay 14.40 7.82 31 500
Matanao
Padada
Tudaya Falls, Farmers -Ben Gomia, Astorga, Sta. Cruz D
-Tudaya Alls Farmers Ass’n., Tudaya, Sibulan
Ass’n., Tudaya, Brgy. Mobile Stripping Machine, -Letty Puroc, Sta. Cruz D
-Tibolo Abaca Farmers Ass’n. (TAFAS), Tibolo
Sta. Cruz 573.80 312.13 947 3 129 13.6% 1500 Sibulan Tudaya Falls Farmers Ass’n., -Dennis Amad, Tudaya, Sibulan D
-Mt. Apo Ancestral Domain Community Farmers
Sta. Cruz Cooperator: Sibulan -Jocelyn Pili, Tudaya, Sibulan, Sta. Cruz D
Ass’n. (MADCOFA), Tudaya, Sibulan
Mr. Dennis Amad -Gaspar Diazon, Tudaya, Sta. Cruz D
-Kimlawis Farmers’ Ass’n., (KFA), Kimlawis
Tribal
-Bulolsalo Abaca Farmers’ Ass’n. (BAFA),
Handicraft
Bololsalo
Kiblawan 46.40 25.24 131 3 97 74% 700 1 Makers’ Ass’n.,
-Tacub Tribal Women’s Ass’n., (TTWA), Tacub
Kiblawan,
-Balasiao Integrated Social Forestry Ass’n.,
Davao del Sur
(Balasiao)
Malalag 14.20 7.74 29 300

Sulop
-Baning Ismail, Dalupan, Don Marcelino D
-Renato S. Bautista, Dalupan, Don D
Don
803.30 437.01 1284 3500 Marcelino D
Marcelino
-Loreto I. Aradani, Dalupan, Don Marcelino D
-Noe Arcilla Jr., Poblacion, Don Marcelino
Jose Abad
694.00 377.52 1229 3500
Santos
DAVAO OCCIDENTAL

-Emelie Bajenting, Poblacion, Malita C

-Marilou Baguio, Little Baguio, Malita D
-Noling Suganay, Little Baguio, Malita D
-Esther Albios, Little Baguio, Malita D
-Elcana Calinawan, Little Baguio, Malita D
-Pamela Angos, Little Baguio, Malita D
-Arnold Villahermosa, Little Baguio, Malita D
Malita 7273.30 3956.65 4467 1 30 60% 5000
-Espaldon San, Little Baguio, Malita D
-Ben Manicsic Jr., Little Baguio, Malita D
-Eunice Pepugal, Little Baguio, Malita D
-Olivo Trading, Poblacion, Malita D
-ASM Fiber Trader, Lagumit, Malita A
-LRM Fiber Marketing, Poblacion, Malita A
-Raul Barrios, Lagumit, Malita A
Saranggani 10.60 5.79 35 500

Sta. Maria 613.00 333.49 1307 1500

Total 10,603.30 5,768.17 10,602 12 502 4.73% 20,000 2

38
IV - B.) INVESTMENT PLAN:

The target area for expansion which is beyond the existing area planted
with abaca showed the interest of the LGUs to include abaca among its priority
crops. The programs and projects they have identified and specified in the PCIP
are interventions that would increase its production and shall focus on the
different priority areas identified during the Value Chain Analysis (VCA)
workshops by the different abaca stakeholders. Among these priority areas are
the following:

a. Use of good quality tissue cultured planting materials of high yielding

varieties

b. Access to mechanical stripping machine, dryer, and storage

c. Improve farm productivity

d. Good roads in order to reduce cost of transaction and post harvest

losses

e. Improve flow of benefits to farmers to increase share in market

price/profits

f. Achievement of Rainforest Alliance Certificate

In the prioritization and ranking of intervention strategy, Davao del Sur’s

stakeholders had this ranking in sequence to wit:

1. Strengthening of local commercial production and distribution of high

yielding and disease resistant planting materials.

2. Development and/or strengthening of local extension advices and

assistance to achieve Rainforest Alliance Certification.

3. Construction and/or repair of farm to market roads in key abaca

production areas.

4. Establishment and/or strengthening of collective enterprises

specializing in post harvest operations and abaca consolidation.

5. Harmonization of interpretation of standards and corresponding price

differentials including development of enforcement mechanism.

6. Promotion of direct/modular relationships between lead firms and

abaca communities.

7. Development of capacity of farmers to incrementally associate,

collaborate, and coordinate to achieve economies of scale and to
become attractive partners to Class A traders and processors.

In the consultative workshops conducted by the Provincial Government, it

was identified that construction of a tissue-cultured laboratory is needed in order
to provide planting materials of high yielding varieties and disease resistant
planting materials.

39
 The support of the Local Government Units to abaca industry shall be a
major input as they provide technical and financial assistance directly to abaca
farmers through the Municipal Agriculture Office. However, additional funding
from PRDP and the adoption of PPP as a strategy are opportunities that would
respond to the needs of the industry effectively.

IV - C.) CONSOLIDATED VALUE CHAIN MATRIX: ABACA (refer to Annex 4)

40
V - A.) COMMODITY PROFILE: CASSAVA

Cassava is an important food source which is excellent in carbohydrates

but an inferior source of protein, fat and vitamins. This crop is a staple food in
105 countries. In the Philippines, it only contributes 4% to the gross value added
in agriculture. According to the Food and Agriculture Organization (FAO) report
published in May, 2013: Cassava has a huge potential and could turn from “a
poor people’s food into a 21st century crop” if grown according to a new
environment-friendly farming model.

Cassava is used as a raw material for many industrial applications. Its

most important industrial uses are as source of energy in animal diets in the feed
industry, for the starch industry and more recently for the production of ethanol.

On the global standing of cassava, for 103 countries in 2012, 57% comes
from Africa, Asia contributed about 37% of the world production with Thailand
and Indonesia as the top producers. Philippines ranks 25th in terms of production
volume.

In the Philippines, 77% of cassava production comes from Mindanao

wherein ARMM and Northern Mindanao accounted for 90% of the total Mindanao
production.

Table 22: Top 5 Cassava Producing Regions

Region Volume (in MT) % to RP

ARMM 1,035,107.18 44%
Northern Mindanao 601,288.53 25%
Bicol Region 113,789.70 5%
Central Visayas 90,697.63 4%
Eastern Visayas 90,331.26 4%
Source: BAS

In Davao Region, Davao del Sur has the biggest cassava production
volume, followed by Compostela Valley, Davao del Norte, Davao Oriental and
Davao City.

Table 23: Cassava Production Volume, Davao Region, 2013

Province Area Planted (in MT)
Davao del Norte 3,116.42
Davao del Sur 4,637.71
Davao Oriental 2,296.57
Compostela Valley 3,656.53
Davao City 2,261.38
Source: BAS

For Davao del Sur, the top three (3) cassava producing municipalities are:
Malita, Don Marcelino and Magsaysay. In 2013, it has a total land area of
1,091.50 planted with cassava with 613 hectares as possible area for expansion.

41
 Table 24: Municipal/City Data for Cassava, Davao del Sur and Davao Occidental, CY 2013

Province/ Area Production No. No. of % No. Area No. of

Municipality/ Planted Volume (Metric of Farmer of Farmers that are Expansion Processors
City (Has.) Tons) Farmers Groups member
of Farmer groups
Davao del Sur
Bansalan 84 67.00 221 25 205 92.8% 60 1
Digos City 5 50.00 7 - - - 15 1
Hagonoy 0 0.12 5 - - - 5 -
Kiblawan 8 80.00 10 - - - 50 -
Magsaysay 119 1,219.59 326 - - - 20 -
Malalag 50 410.84 919 - - - 20 -
Matanao 12 166.00 47 - - - 20 -
Padada 9 9.25 139 - - - 85 -
Sta. Cruz 51 277.40 82 1 53 65% 70 -
Sulop 1 3.09 344 - - - 8 -
Davao Occidental
Don Marcelino 234 1,886.00 430 - - 12.40% 20 -
Jose Abad 2 12.50 122 - - - 20 -
Santos
Malita 500 5,000.00 606 - - - 200 -
Sarangani 4 20.50 20 - - - 10 -
Sta. Maria 13 10.00 39 - - - 10 -
Total: 1,092 9,212.29 3,317 26 258 170.02% 613 2
Source: MAO/OPAG

Table 24a: Existing Processors, Nurseries, Facilities and Business Enterprises for Cassava
Davao del Sur and Davao Occidental, CY 2013

Processors Existing
Municipality / No Location Plant Business Enterprise/
Province Farmers’ Association Facilities
City . Nursery/ Name of Traders
Location
Bansalan Bansalan Planters Ass’n.
Marcelo Fuentespina, Bansalan Planters Marcelo Fuentespina,
1 n/a – 2 units Cassava
Lower Mabuhay Ass’n., Bansalan L. Mabuhay, Bansalan
Chipper / Granulator
Digos City Emily Escaño, Tres de Emily Escaño, Tres de
1
DAVAO DEL SUR

Mayo, Digos Mayo, Digos City

Hagonoy
Magsaysay MLGU – 1 unit Cassava
Chipper/Granulator
Matanao
Padada
Sta. Cruz Brgy. Zone 1 Farmers’
Ass’n. Sta. Cruz
Kiblawan
Sulop
Malalag
Don
Marcelino
OCCIDENTAL

Jose Abad
DAVAO

Santos
Malita Agri-Aqua Multi-Purpose 2 units Cassava Chipper/ Jun Rey Albiso,
Cooperative, Kidalapong, Granulator Kidalapong, Malita
Malita
Saranggani
Sta. Maria
Total 2

In the E-VSA result, the analysis of data is presented by province. For

Davao del Sur, the top three (3) cassava producing municipalities are
Magsaysay, Bansalan, and Sta. Cruz. And for Davao Occidental, Malita, Don
Marcelino and Jose Abad Santos. As to suitability analysis, in Davao del Sur,
Malalag, Magsaysay and Sulop are the top 3 ranking municipalities suitable for
cassava production. And for Davao Occidental, Malita, Sta. Maria and
Saranggani.

42
 Table 24b: PROVINCIAL / MUNICIPAL / CITY DATA FOR CASSAVA

Producti % no. of Processors Existing

Area Number No. of Area for
Municipality on Farmers that Plant
Province Planted of Farmer expansion Farmers Association Existing Facilities List of Traders, Buyers, Assemblers
/ City Volume are members of No. Location nursery
(Has.) Farmers Groups (has.)
(mt) farmer groups location
Bansalan Planters Ass’n., - 2 units Cassava Marcelo Fuenterspina, L. Mabuhay,
Bansalan 83.96 68.00 221 25 205 92.8% 60 1 Marcelo Fuentespina, Lower Mabuhay N/A Bansalan Planter’s Ass’n., Bansalan
Chipper / Granulator Bansalan
Digos City 5.00 50.00 7 15 1 Emily Escaño, Tres de Mayo, Digos Emily Escaño, Tres de Mayo, Digos
Hagonoy 0.03 0.12 5 5
DAVAO DEL SUR

Magsaysay 118.79 1219.59 326 20 MLGU – 1 unit Cassava Chipper/Granulator

Matanao 12.25 166.00 47 20
Padada 9.26 9.25 139 85

Sta. Cruz 51.00 277.40 82 1 53 65.0% 70 Brgy. Zone 1 Farmers Ass’n., Sta. Cruz

Kiblawan 8.00 80.00 10 50

Malalag 49.50 410.84 919 20

Sulop
Don
234.00 1886.00 430 20
Marcelino
OCCIDENTAL

Jose Abad
2.19 12.50 122 20
DAVAO

Santos
Agri-Aqua Multi-Purpose Cooperative, Jun Rey Albios, Kidalapong, Malita
Malita 500.00 5000.00 606 200 2 units Cassava Chipper / Granulator
Kidalapong, Malita
Saranggani 4.00 20.50 20 10

Sta. Maria 12.50 10.00 39 8

Total 1,091.50 9,213.29 3,317 26 258 45.0% 613 2

43
 Figure 16.
EXPANDED VULNERABILITY &
SUITABILITY ANALYSIS MAP
for CASSAVA

44
 Figure 17.
EXPANDED VULNERABILITY &
SUITABILITY ANALYSIS MAP
for CASSAVA

45
V - B.) INVESTMENT PLAN:

The programs and projects identified by the different Local Government

Units in support to cassava industry of the province shall be jointly and
collaboratively undertaken by its stakeholders in partnership with the government
sector.

Generally, the interventions shall focus on the following priority areas which
were identified by the stakeholders during the workshop called by DA XI, to wit:
a.) Sustainable intensification of cassava production through improvement
of farm productivity and set-up of cassava agri-business clusters in
identified expansion areas.

b.) Chain wide improvement in net income/profitability without

compromising price competitiveness through production of chips and
granules at the most effective and efficient way with the least ecological
impact.

c.) Year-round production of chips and granules that are consistently in

accordance with market standards and requirements.

In the ranking and prioritization of the intervention strategies, the following

are identified in sequence, to wit:

1. Development of local capacity for production of foundation seeds and

its multiplication and the commercial distribution of planting materials.

2. Strengthening of existing providers of embedded services and/or

development of embedded models to transfer the needed skills, know-
how and information to enable farmers to adopt sustainable production
practices and improve productivity.

3. Strengthening of local supply chains of organic fertilizer and

development of effective demand.

4. Establishment of GMP compliant common service fertilizer for chipping,

drying, granulation and processors.

5. Upgrading of farm-to-market roads.

6. Improvement of coordination and production planning between cassava

farmers and processors.

7. Development of mobile peeling, chipping and drying system around

clusters of farms (in remote areas)

The interplay of the players of the cassava industry as identified in the

value chain shall facilitate the elimination of the barriers and constraints. The
financial support of PRDP shall be a major input in the economic growth of the
cassava industry of the province. The coming in of San Miguel Corporation as a
feed processing plant shall also provide bigger opportunities of cassava farmers.

V - C.) CONSOLIDATED VALUE CHAIN MATRIX: CASSAVA (refer to Annex 5)

46
 VI - A.) COMMODITY PROFILE: SEAWEEDS

Seaweeds are plants in the sea that have no true roots, stems and leaves
and are classified into four (4) groups: red algae, brown algae, green algae and
blue algae. Among these varieties, red seaweeds are the most economically
important in the Philippines. It accounted 98% of the total Philippine production.
These red seaweeds is the source of carrageenan, which is one of the world’s
foremost food and industrial additive within the Philippine seaweed value chain.
Seaweeds farmers usually sell it as fresh or dried.

Philippines contributed 35% of seaweed production, next to Indonesian

which is 48%. Zamboanga and Tawi-tawi in Mindanao dominate the export of dried
seaweeds, while Cebu dominates the processing and exporting of carageenan as
majority of the processing factories are based in Cebu. Davao Region’s production
is only 3,686.48 MT way behind ARMM which is 609,164.54 MT.

Table 27: Seaweeds Production in Mindanao, 2013

Region Production Volume (in

MT)
Zamboanga Peninsula 218,789.07
Northern Mindanao 42,261.32
Davao Region 3,686.46
SOCKSARGEN 20.58
Caraga 19,876.72
ARMM 609,164.54
Total 893,799.32
Source: BAS

In Davao Region, Davao del Sur is accounted to have the biggest seaweed
production in 2013 followed by Davao City and Davao del Norte. The provinces of
Davao Oriental and Compostela Valley posted no seaweed production in 2013.

Table 28: Fresh Seaweeds Production Volume in Davao Region, 2013

Province Production Volume (in

MT)
Davao del Norte 8.93
Davao del Sur 3,341.27
Davao City 336.25
Davao Oriental 0
Compostela Valley 0
Total 3,686.46
Source: BAS

In Davao del Sur, only two (2) LGUs are engaged in seaweed production: Sta. Cruz and
Digos City. Although data from the Office of the Provincial Agriculturist (OPAg) is limited, the total
area planted for seaweed is only 49 hectares with Digos leading the seaweeds industry.
However, there are municipalities which started planting seaweeds with minimal hectare and
considered as “trial” planting. These are located in the municipalities of Malita and Sta. Maria of
Davao Occidental. Target area for expansion is 110 hectares which include Malita targeting
around 20 hectares.

47
 Table 29: Municipal/City Data for Seaweeds Davao del Sur and Davao Occidental CY 2013

Provincial/ Area Production No. No. of % No. Area No. of

Municipality/ Planted Volume of Farmer of Farmers that Expansion
City (Has.) (Metric Farmers Groups are member Processors
Tons) of Farmer
groups
Davao del Sur
Bansalan - - - - - - - -
Digos City 29 2,601.90 247 3 247 100.0% 70 -
Hagonoy - - - - - - - -
Kiblawan - - - - - - - -
Magsaysay - - - - - - - -
Malalag - - - - - - - -
Matanao - - - - - - - -
Padada - - - - - - - -
Sta. Cruz 20 523 190 3 137 72% 20 -
Sulop - - - - - - - -
Davao Occidental
Don - - - - - - - -
Marcelino
Jose Abad - - - - - - - -
Santos
Malita - - - 5 - - 20 For planting
Sarangani - - - - - - - -
Sta. Maria - - - - - - - -
Total: 49 3,124.90 437 11 384 87.9% 110 -
Source: MAO/OPAG

Table 29a. Existing Associations, Facilities, Traders on Seaweeds,

Davao del Sur, CY 2013
Municipality /
Province Seaweeds Association Facilities List of Buyers, Traders, Assemblers
City
Bansalan
Digos City 1. Punta Biao Fisherfolks Ass’n, Cogon, Digos City
2. Punta Biao seaweeds Fisherfolks Ass’n., Cogon, Digos
Felimon Jose
3. Tabigue Fisherfolks Association Inc., Badiang, Sinawilan, Digos City
4. Active Planters of Seaweeds Association, Punta Biao, Digos
DAVAO DEL SUR

Hagonoy
Magsaysay
Matanao
Padada
Sta. Cruz 1. BASEAS – Bato Seaweeds Association, Bato, Sta. Cruz Concrete Seaweeds Drier and Bato Seaweeds Association, Bato,
2. LAFIA – Lawis Fisherfolks Association, Bato, Sta. Cruz Warehouse Sta. Cruz
3. LASFIA – Lawis South Fisherfolks Association, Bato, Sta. Cruz
4. BAFIMCO – Bato Fisherfolks Multi-Purpose Coop. Bato, Sta. Cruz
Kiblawan
Sulop
Malalag
Don Marcelino
OCCIDENT

Jose Abad
DAVAO

Santos
AL

Malita
Saranggani
Sta. Maria
Total

In the E-VSA result by province, only the city of Digos and the municipality of Sta. Cruz
are reflected as engaged in the seaweed industry. Malita and Sta. Maria are not reported, as they
had just started in 2014 with minimal areas planted.

As for suitability of Seaweeds, for LGUs with data only, Digos City and Sta. Cruz are
identified as top 2 LGUs suitable for the seaweed industry.

48
 Figure 18.

49
VI - B.) INVESTMENT PLAN:

Seaweeds production is technically assisted by the Bureau of Fisheries

and Aquatic Resources (BFAR) particularly on the following:
 Research
 Technical trainings, seminars and consultancy
 Market matching
 Establishment of techno-demo farms
 Establishment of seaweeds nurseries
 Financial Support
 Construction of post harvest facilities

Local Government Units also provided other services like

Organizational Development, Enterprise Management Training, Production
Technology Training and Financial Support.

Assisting the seaweeds farmers are funding coming from MRDP but
only for the municipality of Sta. Cruz considering that Digos City is not an
MRDP covered LGU.

During the stakeholders FGD on the seaweed industry, the following

were identified as priority areas, to wit:

1. Development and/or re-design of existing financing and crop

insurance programs to make it more accessible to farmers and
aligned to their needs parallel to building capacity of
cooperatives to become viable conduits of financial services.

2. Establishment of a commercial seedling production system that

makes productive varieties of cultivar available in sufficient
quantities and/or timely basis for seasonal replanting and
ensures industry’s responsiveness to climate change and
market demand and requirements.

3. Development of alternative models of extension services

delivery to complement extension services from the government
and non-government organizations.

4. Facilitate access to resources and skills that will facilitate

improvement of post harvest handling.

5. Creation of database and maps of suitable zones based on

scientific site suitability assessment.

6. Facilitate shift from arm’s length transactions to modular

relations.

7. Support research and development on nutrient enrichment

technologies to provide farmers with eco-friendly solutions other
than the use of chemical fertilizer.

8. Development of commercially viable products and markets for

processed products.

50
 The attainment of the above-cited priority concerns would facilitate
improvement in the seaweed industry. The adoption of the PPP approach as a
strategy is one intervention that would best support the industry in addition to
the all-net support provided by the LGUs. Funding support can always be
tapped to support the various endeavours of the different players of the
industry.

VI - C.) CONSOLIDATED VALUE CHAIN MATRIX: SEAWEEDS

(refer to Annex 6)

51
 Chapter IV

INSTITUTIONAL ARRANGEMENTS FOR PRDP-FUNDING

A.) Implementation and Implementation Supervision:

The Philippine Rural Development Project (PRDP) is a six-year program designed

to assist all Local Government Units nationwide in the development of the agri-fishery
sector. Its four (4) program components namely: I-PLAN, I-REAP, I-BUILD AND I-
SUPPORT are also designed to address specifically the concerns of the identified priority
commodities of each region in order to strengthen and develop these commodities
towards entrepreneurship.

As stipulated in the operations manual of PRDP, management and supervision are

lodged at different levels of governance from the national government to the Local
Government Units. Each program components are interrelated and support each other
from planning, project identification and other stages of the project development cycle.
Such implementation strategy provides better coordinative relationship and supervision
among project implementors.

The cost sharing prescribed by the program between the funding source (World
Bank), the Department of Agriculture, and the Local Government Units is a scheme that
would enable each entity to supervise the projects.

B.) Organization and Management:

At the provincial level, a Provincial Project Management Implementing Unit

(PPMIU) shall be created through an Executive Order of the Provincial Governor tasking
the unit to oversee the implementation of PRDP. The composition of the PPMIU shall
relate to the program. This shall be headed by the Provincial Planning and Development
Coordinator. Included in their tasks and functions are compliance to the required enabling
documents which are basic in the release of funds.

C.) Monitoring and Evaluation:

The Monitoring and Evaluation Team under the I-SUPPORT component of the
PPMIU shall take charge in the monitoring of all programs and projects funded by PRDP.
The team shall also take charge in the preparation of all required reports and shall
coordinate with the I-BUILD and I-REAP Teams in order to meet timelines set by PRDP.

Assisting in the monitoring shall be the PLGU’s Provincial Monitoring Committee

(PMC) whose responsibility is to monitor all projects implemented in the province either
foreign or locally funded.

D.) Safeguards

Social and environmental safeguards are always considered in the preparation of

all feasibility studies submitted for funding to PRDP. This shall be incorporated in the
Environmental and Social Management Plan (ESMP) of each project stipulating mitigation
measures, protection policies and others.

Other existing laws and plans shall also serve as basis for safeguard
considerations like the Indigenous People’s Law, Provincial Development and Physical
Framework Plan, Right of Way Acquisition Law, Resettlement Policies and other parallel
laws and policies.

52
53
 Republic of the Philippines
Province of Davao del Sur
Matti, Digos City

PROVINCIAL DEVELOPMENT COUNCIL EXECUTIVE COMMITTEE

PDC Executive Committee Resolution No. 1 Series of 2015

RESOLUTION APPROVING THE PROVINCIAL COMMODITY INVESTMENT PLAN 2014 – 2020 AND
ENDORSING THE SAME TO THE DEPARTMENT OF AGRICULTURE REGION XI

WHEREAS, the culmination of the Mindanao Rural Development Program in December, 2014 has urged the
Department of Agriculture (DA) to replicate the program nationwide through the Philippine Rural
Development Project (PRDP).

WHEREAS, PRDP is a six – year program of the national government for an inclusive, value- chain oriented,
and climate resilient Agriculture and Fishery Sector;

WHEREAS, the project is designed to be jointly undertaken by DA and the Provincial Local Government
Units;

WHEREAS, the project requires to formulate a Provincial Commodity Investment Plan (PCIP) harmonized
with the Regional AFMPs through the use of value-chain approach that would identify programs and projects
proposed for funding to PRDP funds;

WHEREAS, the PCIP shall respond to the development of the seven (7) priority commodities of Region XI,
such as: cacao, rubber, abaca, banana cardava/saba, cassava, seaweed and palm oil;

NOW THEREFORE, upon motion of HON. NONITO A. LLANOS, SP Member, Chairman on Committee on
Budget & Appropriation, unanimously seconded by all PDC Exe Com Members, it was;

RESOLVED AS IT IS HEREBY RESOLVED to approve the Provincial Commodity Investment Plan, 2014 –
2020 and endorse the same to the Department of Agriculture for funding under the PRDP.
1