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Agricultural Enterprise Development - Value Adding of Scarbidc Arc Basilan Province
Agricultural Enterprise Development - Value Adding of Scarbidc Arc Basilan Province
Agricultural Enterprise Development - Value Adding of Scarbidc Arc Basilan Province
The SCARBIDC ARC is a cooperative name Sta. Clara ARB Integrated Development Cooperative
operating in a 4,018 hectares agricultural plantation. The plantation is planted with rubber, coconut,
coffee and other fruit bearing trees. The cooperative’s existing coffee is 300 hectares intercropped with
coconuts and is continuing on the expansion through the assistance of the Philippine Coconut Authority
who provided about 60,000 coffee seedlings accompanied with organic fertilizers. Members of the
cooperative who are directly involve in the coffee enterprise composed of about 30 females and 10
males on harvesting operation, 7 males in the processing with 30 females involved in sorting. Members
involved acquired the coffee technology since the time of the UP NDC Management prior to CARP
coverage and was not upgraded from the time of CARP. Hence, the members involved needs to be
trained for enhancement on the latest technology both on processing and Marketing Information in
order to cope up with the latest coffee industry. Currently, their present coffee enterprise covers the
maintenance of the existing coffee bushes, harvesting, processing to dried beans and powder coffee
with no formal packaging. Majority of the Coffee produced are sold in dried beans with average price of
100/kilo while coffee powder as minor is sold at 200 per kilo. Despite of the higher price in powder form
of the dried beans, still, the coop are selling majority in dried beans because of the easy disposal of
dried beans in bulk while the powder form has no fixed marketing system. Inadequate packaging and
low quality of powder is also affected in the marketing strategy. Currently, the cooperative have existing
de-pulper, huller machine and a small old coffee grinder and an improvised oven toaster for coffee. The
present coffee grinder and toaster have limited capacity of coffee powder production per day making it
less efficient and the powder output is of low quality. As part of the AED strategic measure for ARCs,
the project aims to improve the quality of the coffee powder and to maximize the production for coffee
powder as a value added from the dried beans which the cooperative is selling. SCARBIDC proposed
for an improvement on their existing oven type toaster and upgrade it to mechanical type of toaster.
Their existing grinder is also proposed to upgrade to a bigger capacity grinder and improved quality
output such as smoothness of powder. The grinder machine and oven-type toaster are all fabricated
from well-known manufacturer’s such as the PAYO Manufacturer based in Davao, BOTE Central based
in Las Pinas Manila.
The project is composed of the acquisition of the Coffee grinder and coffee oven type toaster as the
hard project and other inter-related activities for the value adding strategy of the SCARBIDC coffee
enterprise development. The coffee grinder is fabricated in Manufacturers such as from PAYO based in
Davao or from BOTE Central based in Las Pinas Manila. Fabrication of the oven type toaster can be
done by the SCARBIDC Cooperative if there are no available fabricators for said toaster. The coffee
grinder specification is Electric Motor Single Phase, Engine Pulley, V-belt, Electrical Wire and Push
Button; with Capacity of 30-40 kilos/hour and Required power of 3 HP. The coffee oven type toaster is a
mechanical automated design with capacity of 30 kilos per hour of dried beans. Part of the project is
also the training of the cooperative personnel involved in latest coffee processing and packaging and
marketing strategy. The training includes the packaging materials, labels and equipment such as
package sealer. The project will also cover the possibility of formal marketing tie-up with buyers.
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III. Project Strategy
Aside from the upgrading and improvement of the grinder and oven type toaster, it is necessary to
undertake the following inter-related activities for the value adding in the SCARBIDC Coffee enterprise
operations.
1. Consultation meeting with the cooperative Board of Directors and the Management concerned of
the cooperative’s coffee enterprise operation. This is an activity to confirm the actual needs of the
cooperative regarding the upgrading/value adding of the coffee enterprise of SCARBIDC. This will
be facilitated by the DAR AED/CDD and representative from DTI;
2. Profiling of the cooperative’s coffee enterprise operations and validation of their present activities
on coffee operation. This is an activity on gathering of the actual past and present data on the
SCARBIDC coffee enterprise operations to have a baseline data such as production, area,
workers and other basic data;
3. Conduct of Business planning on coffee enterprise of the cooperative. This is a three days
planning workshop in making a projections on coffee business operations; This will be facilitated
by AED/CDD & DTI. Participants will be the key persons on the coffee enterprise operations with
20 persons involved;
4. Preparation and submission of the business plan. This will be a complete documentation of the
SCARBIDC coffee enterprise operations plan(business plan);
5. Canvass of the coffee grinder and toaster. This will be done by the DAR’s canvasser with the
assistance from the AED; The proposed specifications for each equipment are the following:
5.1 Coffee Grinder specifications: With Electric Motor Single Phase, Engine Pulley,
V-belt, Electrical Wire and Push Button; Capacity of 30-40 kilos/hour and Required
power of 3 HP Price: PhP110,000.
6. Delivery of the grinder and toaster from the supplier to DAR Basilan.
7. Evaluate existing vermi-culture organic fertilizer production of the cooperative. The AED/CDD and
DA representative will assist the cooperative in evaluating their present organic fertilizer
production volume and nutrient contents of the fertilizer. This will be used in the maintenance of
the coffee bushes of the cooperative.
8. Monthly Monitoring and evaluation of the coffee enterprise of the cooperative by the AED and
CDD.
9. Conduct of Enterprise & product packaging/labeling training. The Department of Trade and
Industry will be responsible in the conduct of training with the assistance from DAR AED/CDD.
The training shall include the value of the business and enterprise mind-setting of the cooperative,
enhancement on financial management and the coffee packaging and FDA requirements.
10. Turn-over and orientation on the operation of the equipment. This will be a one day orientation on
the operation of the equipment by the supplier with the key persons of SCARBIDC (operator).
11. Facilitate FDA compliance. AED/CDD together with the DTI representative will assist the
cooperative in registering their coffee finished product with FDA per requirements.
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12. Linkaging and market tie up of the coffee finished product of the cooperative. AED/CDD & DTI will
assist the cooperative in looking for possible marketing tie up through the ARCP II-NPCO.
IV. Objectives
Specifically:
Strengthen the integrated production, post harvest and marketing linkages of the
cooperative’s coffee business operation;
Upgrade the cooperative’s existing post harvest facilities to improve quality at lesser
cost
Improve product packaging to build market linkages and entrepreneurial skills
V. Output
The total cost estimates needed to undertake the proposed activities is PhP500,000.00, with
the breakdown as follows:
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a. Fabricated coffee
Grinder :
Electric Motor Single
Phase,
Engine Pulley, V-belt,
Electrical Wire and Push
Button; Capacity of 30-40
kilos/hour and Required
power of 3 HP
b. Fabricated Mechanical
Coffee Toaster with
capacity of 30 kls/hr.
c. Package Sealer & 30,600
packaging mat’ls in
various sizes (foil type)
CONTINGENCY (8%)
11. Monitoring and evaluation Monthly, Jan-Oct AED, CDD 35,000
2015
12. Conduct of enterprise training January 2015 DTI, DAR 25,000
13. Turnover and orientation on January 2015 DAR, DTI, coop, 10,000
operation of equipment supplier
14. Prep’n & facilitation of FDA February 2015 DTI, DAR & coop 3,000
compliance
15. Linkaging and market tie up February 2015 DAR, DTI, DOST,
coop
TOTAL 500,000
Prepared by:
Recommending Approval:
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Approved by:
AMIHILDA J. SANGCOPAN
Regional Secretary/
ARCP II Regional Project Manager
Noted By: