THE CUMABAO, NAMNAMA, CAMASI, DY-ABRA EAST-WEST SEED

GROWERS MULTIPURPOSE COOPERATIVE

CREDIT PROGRAM: A CASE STUDY

EDUARDO C. NARAG

Submitted to the Faculty of Provincial Technical Institute of Agriculture

at Isabela State University, Cabagan, Isabela in
partial fulfillment of requirements
for the degree

BACHELOR OF SCIENCE IN AGRIBUSINESS

APRIL 2015
APPROVAL SHEET

This research study entitled THE CUMABAO, NAMNAMA, CAMASI, DYABRA EAST-WEST SEED GROWERS MULTIPURPOSE COOPERATIVE
CREDIT PROGRAM: A CASE STUDY, prepared and submitted by EDUARDO C.
NARAG, in partial fulfillment of the requirements for the degree BACHELOR OF
SCIENCE IN AGRIBUSINESS, is hereby recommended for approval.
DONNIE C. BACUD
Adviser
________________
Date

Accepted by the panel of examiners with the grade of PASSED

DONNIE C. BACUD
Chairman
______________
Date
GERRY Z. LAGGUI
Member
______________
Date

LAZARINE T. MAMAUAG
Member
______________
Date
APPROVED

DONNIE C. BACUD
Chair, Department of Agribusiness
______________
Date

MARIVIC H. DELA PAZ

Research Coordinator
______________
Date

SAMUEL R. SIMON, Ph. D

Dean, PTIA
______________
Date
BIOGRAPHICAL SKETCH

The author was born on January 02, 1989 at San Nicolas, Delfin Albano, Isabela.
He is the third child among the four children of Mr. Esmundo P. Narag and Mrs. Belen C.
Narag.
He studied and finished his elementary and high school education at San Nicolas
Multi-Grade Elementary School in 2001and San Antonio National High School in 2005,
respectively.
Through the blessings of the Almighty God and with the support of his loving
parents, he pursued his college education at the Provincial Technical Institute of
Agriculture (PTIA), Isabela State University (ISU) Cabagan Campus, with the degree
of Bachelor in Science in Agribusiness (BSAB). Due to his desire to attain his goals in
life and the support of the people around him, he successfully complied with all the
requirements of the degree and is now a candidate for graduation for the school year
2014-2015.

EDUARDO C. NARAG

ACKNOWLEDGMENT

The author would like to take this opportunity to express his profound gratitude
and deep regards to the persons who made this work possible.
To Prof. Donie C. Bacud, his Technical Adviser, for his valuable support,
suggestions and recommendations for the improvement of the study;
To Prof. Lazarine T. Mamauag, his Class Adviser, for her motherly guidance and
care;
To Dr. Richard C. Ramirez, Executive Officer; Dr. Samuel R. Simon, PTIA Dean;
Dr. Bella T. Reyes; Prof. Lolita M. Ramirez; Prof. Gerry Z. Laggui; Prof. Marivic H.
Dela Paz; Prof. Alan V. Bautista; All PTIA Faculty and Staff, for their administrative
support and for the knowledge, learning and skills they are imparted;
To the Members of the Cumabao, Namnama, Camasi, Dy-Abra East-West Seed
Growers Multipurpose Cooperative, specifically the Management Staff, Manager Sheryl
P. Balucas, Madam Judilyn Ayun, Madam Marilyn Dumaliang, and Madam Leilanie
Balbin, for allowing him to conduct his OJT and for the good relationship which inspired
him more to do his work in the cooperative;
To his dearest father, Mr. Esmundo P. Narag for his love, endless support,
understanding and sacrifices;
To his beloved brother and sisters, Domingo, Binancia and Sheryl, for their
financial support and for being good brother and sisters all the time;
To his friends Jm, Adriano, Rene, Jerome, Rodney, Jake, Henry, Mhac, Rudy, Vic
and Zhar whom he laughed with and for being there always whenever he needs a person
to lean on; and

Above all, to our Almighty God, for the wisdom, blessings, strength, guidance
and protection as he continues his journey in life.

EDUARDO C. NARAG

TABLE OF CONTENTS

TITLE PAGE
APPROVAL SHEET
BIOGRAPHICAL SKETCH
ACKNOWLEDGMENT
TABLE OF CONTENTS
LIST OF FIGURES
LIST OF TABLES
LIST OF APPENDICES
ABSTRACT
CHAPTER I. INTRODUCTION
CHAPTER II. OBJECTIVES OF THE STUDY
CHAPTER III. METHODOLOGY
CHAPTER IV. INDUSTRY NOTES
CHAPTER V. CASE PROPER
A. Historical Background
1. Vision
2. Mission
B. Organization
C. Production
D. Marketing
E. Finance
F. Future Plans
CHAPTER VI. PROBLEM IDENTIFICATION AND ANALYSIS
A. Possible Problem Areas
B. Problem Analysis
C. Identified Problems
D. SWOT Analysis
CHAPTER VII. ALTERNATIVE SOLUTION AND EVALUATION
A. Alternative Solution
B. Decision Criteria
CHAPTER VIII. DECISION/RECOMMENDATION
A. Operational Plan
1. Implementation Plan
2. Contingency Plan
APPENDICES
EXHIBITS

Page
i
ii
iii
iv
vi
viii
viii
viii
ix
1
4
5
6
8
9
9
10
17
17
18
21
22
22
26
26
28
30
31
32
32
33
34
56

LIST OF FIGURES
Figure No.
1
2

Title
CNCD East-West Seed Growers MPC Organizational
Structure

Page
16

Implementation plan of solution in the problem

33

LIST OF TABLES
TableNo.
1
2

Title
Price lists of seeds produce per kilogram
Summary of CNCDMPC Financial Ratio

Page
18
21

Actual performance of CNCDMPC Credit Program as of

February 2015

25

2012 and 2013 average collection period of accounts receivable

25

LIST OF APPENDICES
Appendix No.
1
2
3
4

Title
CNCD East-West Seed Growers MPC List of Officers
Cooperative Policy
2012 and 2013 Audited Financial Statement
Cost and Return Analysis of Ampalaya Seed Production

Page
35
36
43
54

THE CUMABAO, NAMNAMA, CAMASI, DY-ABRA EAST-WEST SEED

GROWERS MULTIPURPOSE COOPERATIVE
7

CREDIT PROGRAM: A CASE STUDY

EDUARDO C. NARAG
ABSTRACT
The Cumabao, Namnama, Camasi, Dy-Abra East-West Seed Growers
Multipurpose Cooperative (CNCD-MPC) is a cooperative engaged in marketing and
credit operations. The CNCD-MPC is a brainchild of the East-West Seed Company
(EWSC) to act as a conduit among its hybrid seed growers in Tumauini, Isabela. CNCDMPC was also established to facilitate the distribution of assistance needed by the farmer
members coming from East-West. Although it seems that the cooperative is doing well in
its businesses due to the fact that they have a captured market and that they have the full
support of EWSC, there are signs that the cooperative is struggling financially such as
their inability to pay their debts on time and the piling up of past dues and inactive loans.
Thus, there is a need to analyze the loan program implementation and the financial
position of the cooperative. The type of research is a case study using qualitative and
quantitative analysis. Qualitative analysis was used on the evaluation of the program
guidelines and its effect on repayment while quantitative/financial analysis was used in
evaluating the financial position of the cooperative. The quantitative data used in this
research was the audited financial statements of the cooperative. The result of the study
revealed that the cooperative has poor ability to collect accounts receivable caused by
insufficient number of staff. This resulted to an increase rate of delinquent clients/past
due accounts and consequently, insufficient budget to finance the needs of their farmer
growers. Based on the weighted decision criteria, strict monitoring and implementing
8

policy guidelines is highly recommended. A revised loan program was also proposed to
address some weakness of the current loan programs. CNCD-MPC has all the needed
assets to function profitability, merging these assets to work effectively and efficiently
will make the cooperative a success.