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Abaca Trading Proposal
Abaca Trading Proposal
II. Background
Introduction
Abaca (Musa textiles Nee) a plant belonging to the musaceae family or Manila hemp as
it is known commercially in international trade is endemic to the Philippines that grows
in the wild and in most rural areas. It is cultivated in some upland marginal areas or
grown commercially for its fibers which are used as raw materials for pulp, cordage and
handicraft industries. Abaca is considered as one of the strongest among natural fibers.
The crop has been proven profitable and has continuously provided income to many
Filipinos, especially those to the uplands for their subsistence.
Rationale
Abaca when intercropped with fruit trees or timber trees could not only be a good
source of income to the upland dwellers but also prevent soil erosion. Therefore
integrating abaca into existing reforestation project not only provides additional income
to farmers but also maintains an ecological balance of nature as farmers can help to
protect and maintain target areas as well through ecologically sound abaca fiber
production. And as abaca fiber’s demand in both the local and international markets
rapidly surge and as more areas are available for planting, opportunities and
developments in the uplands awaits like those living within the peripherals of Mt.
Malindang Range Natural Park.
In Namut, Tudela, Misamis Occidental, abaca has been cultivated ever since and farmers
sold their fibers to local traders at minimal price. The people’s organization felt the
plight of the local farmers and find out for an opportunity to engage in the business of
abaca fiber processing and trading to free themselves from unscrupulous businessmen.
The large tract of land planted with abaca in the area is targeted by the organization.
Owners of the abaca plantation will be encourage to enter into supply contract with the
organization. The lack of capital outlay for its operation is a problem that should be met
thus this proposal.
III. Objectives:
4. Management Scheme.
The Protected Area Management Office will be primary responsible in the
implementation through technical assistance that will be extended to the
beneficiary organization. The People’s Organization will appoint from among its
officers who will serve as its project officer that will focused on the
implementation of the project. The president may assume the position as project
officer who will execute the activities stipulated in the project implementation
plan. The treasurer of the organization will act as the cashier and disbursing officer
of the project and shall maintain the daily transaction and all financial records of
the project based on the work and financial plan. On the trading activities of the
project, the organization may hire employees to engage in the buying of abaca
fibers such as laborers and those involves in the weighing and grading of abaca
fibers. They may receive compensation based on the accepted labor standard in
the locality. The buildings and equipment shall be properly keep safe and should
be in working condition with the help of a property custodian that will be
entrusted to a committee that will be formed by the organization.
On the management and operational scheme for payment or rental on the use of
the decorticating machine, the PO will implement a sharing scheme of 40% and
60% for the PO and the abaca plantation owners respectively in the gross receipt
sales or proceeds of the abaca fibers. The owner of abaca plantation will provide
for the payment of labor or wages of the decorticating machine operator and
expenses for the fuel or gasoline.