AGRIBUSINESS FIELD TRIP REPORT:

Sorosoro Ibaba Development Cooperative (SIDC),

Gourmet Farm and Ilog Maria

SOROSORO IBABA DEVELOPMENT COOPERATIVE

I. BACKGROUND INFORMATION

Sorosoro Ibaba Development Cooperative, with the original name of

Sorosoro Ibaba Farmer’s association, was founded on March 19, 1969 by
Mr. Victoriano E. Barte in a small barangay of Sorosoro Ibaba in Batangas
City. The association was a small farmers’ organization with only 59
members who contributed two hundred pesos (PHP 200) each in order to
generate a working capital of eleven thousand eight hundred pesos (PHP
11,800). The starting capital was used for the construction of the first
business venture under the association, a sari-sari store.

In 1972, Sorosoro Ibaba Farmer’s association was changed to

‘Samahang Nayon ng Sorosoro Ibaba’ and added contract-growing
activities for its members. With the success of the contract growing
operations, the association gained more members and was then qualified
to be a cooperative. Sorosoro Ibaba Farmer’s association was renamed in
the November of 1978 as ‘Sorosoro Ibaba Consumers' Cooperative’.

Five years later, the cooperative was registered in the Ministry of

Agriculture as ‘Sorosoro Ibaba Development Cooperative, Inc.’ and was
categorized as a development cooperative. The last update of the
cooperative’s name was in 1997, where they dropped the ‘Inc.’

Vision

SIDC shall be recognized as a world class cooperative

empowering stakeholder for a sustainable progressive life.

Mission
 SIDC shall offer and develop quality products and services
adopting technologically advanced systems to build prosperous lives
and strengthen spiritual and social developments of stakeholders.

II. ORGANIZATION

Sorosoro Ibaba Development Cooperative is currently one of the

largest cooperatives in the Philippines. Keeping in mind their vision,
SIDC takes pride in empowering their stakeholders (their members) in
terms giving opportunities to lead or take part in the expansion
process of the cooperative.

SIDC started out as an association that caters for the residents of

Sorosoro Ibaba, Batangas City. The then association aimed to help
residents for better access of necessities. Until present, SIDC still
continuously aids and provides opportunities to its members in terms
of cashbacks, loans, and business opportunities. SIDC also takes part in
Corporate Social Responsibilities in terms of providing contract-
growing opportunities for both members and non-members.

III. PROCESSING FACTORS

a. Production Technology

SIDC makes use of Artificial Insemination process in its hog

raising farms. This ensures that only the best quality of piglets is
produced from superior boars and sow. The AI process is conducted
and monitored by a professional.

SIDC Feed mill uses an automated system that came from

Thailand. The system has a sensor that monitors the input of proper
amount or measurements of ingredients mixed in the processing of the
feeds. There are engineers who monitor the system for corrective
actions in case of emergencies. The system and the machines produce
mash, pellet and crumble feeds for livestock and poultry.
b. Plant Location

The main office of Sorosoro Ibaba Development Cooperative is

located at Sorosoro Ibaba, Batangas City. The layer farm of SIDC is
located at Balanga, Ibaan, Batangas and a Hog Raising in Taysan,
Batangas. There is also a Feed mill plant near the main office of Sorosoro
Ibaba Development Cooperative in Batangas City. These areas are close
to the port of Batangas, which is very practical considering that SIDC
distributes their products to places such as CALABARZON, MIMAROPA,
Central Luzon, Bicol Region, Panay Island and Bacolod.

c. Inventory Management

The forty-five thousand square meter warehouse of SIDC can house

seven hundred metric tons of corn for 36 days. There are 2 silos with a
conveyor elevator that serves as storage for the corn. The main program
for production in SIDC Feed Mill is the SAP program wherein the
processing of feeds is monitored.

The SIDC Layer Farm can hold up to seventy-five thousand (75,000)

birds that can produce sixty-three thousand (63,000) eggs daily. Eggs can
be categorized as small, medium, large and extra-large. They store these
eggs in a storage room near the entrance of the layer farm.

d. Supplies Procurement

Sorosoro Ibaba Development Cooperative makes use of the

products sold in their own business ventures. SIDC’s hog raising and layer
farms acquire antibiotics and vitamins needed by their animals from
RightVet, a business unit under SIDC. Members who are raisers and has
farms feed their animals, SIDC feeds, one of the main business ventures
of SIDC.

Due to the small number of produces in the Philippines, SIDC

imports raw materials needed for the feeds such as soybean meal and
feed wheat from United States of America and Argentina. However, SIDC
still get raw materials locally. But quality and wise, they still opt to import
in order to meet quota orders.
e. Production Programming

SIDC offers the program called the PAIWI System wherein the
cooperative offer contract-growing to people. The cooperative will provide
everything except for the location where the piggery will be placed. The
contract-grower will only have to ensure that the hogs will grow with the
better to best qualities.

Production programming, technical wise, is best seen in SIDC Feed

Mill with the SCADA, or the Supervisory Control And Data Acquisition, was
developed by Triumph Engineering Co. Ltd. in Thailand. With this
technology, SIDC Feed Mill can generate 15 tons of pellet feeds and 20
tons of mash feeds per hour. The feed mill produces nine thousand (9000)
bags of feeds daily.

f. Control Methods

The SIDC feed mill have strict compliance with quality control.
Rejected raw materials are thrown back to the machines to be processed
again in order to achieve standard quality. Machines in SIDC does not run
all day, all week. In order to ensure safety in both the employees and the
machine itself, management allots a day for machine inspections and to
perform maintenance to keep the machine in its best performance.

g. By-Products Produced and Uses

Straw, pollard and sweepings from materials that are considered

the by-product in the SIDC Feed Mill is used as feed in the Layer farm.
Chicken manure from the Layer farms are used as fertilizers in KOOPLikas.

IV. MARKETING FACTORS

a. Major Market

Sorosoro Ibaba Development Cooperative’s market are its members

nationwide and locals within Batangas area since the cooperative’s
businesses are mostly situated in Batangas area. As the cooperative
expands their businesses, markets are slowly introduced to the ventures.
SIDC is gradually increasing their market reach in the Philippines.
b. Products and Services

SIDC offers a wide variety of products and services to its market.

The following are the businesses under SIDC available the available
products and services:

1. SIDC Feed mill

SIDC Feeds
COOP Feeds
Big Boys
2. Rice mill
3. Contract-growing
PAIWI system
Hog raising
4. Artificial Insemination
5. Layer Farm
6. RightVet
7. KooPinoy
8. Coop Mart
9. One Click Mart
10. One Stop Shop
11. Koophardware
12. Sorosoro Springs Mountain Resort
13. SIDC Aquacare
14. Digital Fiber TV and Internet
15. Kooprints
16. SIDC Petron and SIDC Gas
17. SIDC Agri-trading and Financing

c. Distribution outlets

BUSINESS LOCATION
Coopmart Tinga, Labac
Pallocan
Conde, Labac
Pinamucan
 San Miguel
Balanga, Ibaam
Bauan, Batangas
Alaminos, Laguna
Pinamalayan
Mindoro
Jaen, Nueva Ecija
Bongabong, Oriental Mindoro
Mahacot, Batangas
Rosario, Batangas
Coop Supermarts
Sorosoro Ibaba, Batangas City
One Click Mart Balagtas, Batangas City
Alaminos, Laguna
San Juan, Batangas
Bansud, Oriental Mindoro
One Stop Shop
Jaen, Nueva Ecija
Narra, Palawan Alabat, Quezon
Candelaria, Quezon
Rice Mill Socorro, Oriental Mindoro
Layer Farm Balanga, Ibaan Batangas
Sorosoro Springs Mountain Resort Batangas City
SIDC Petron & SIDC Gas Balagtas, Batangas City
Pinamalayan, Oriental Mindoro
Bicol (Pili, Tigaon,
Libmanan,Polangui)
North Luzon (Jaen, Mayantoc,
Guimba, Paniqui, San Miguel,
SIDC Agri-Trading and Financing
Talavera)
Panay Island (Makato, Aklan)
Rizal (Tanay)
Negros Island (Bacolod)

Digital Fiber TV and Internet Batangas City

d. Pricing

Tax-exemption is one of the factors why goods from SIDC is

relatively cheaper compared to other brands. Members also receives
‘cash backs’ every time they patronize the cooperative’s products and
services.
e. Promotion

SIDC members are the main source of promotion for the

organization, word of mouth. Members do house to house and go to
different barangays to promote the cooperative. The expansion of
different businesses under SIDC also serves as promotion to encourage
casual people to join the cooperative. Incentives are given to all members
who patronize SIDC goods.

V. COMPANY ISSUES AND PROBLEMS

With the current issue with regards to African Swine Fever cases,
SIDC had lower selling price and contract growing became slower.

VI. FUTURE TRENDS

Sorosoro Ibaba Development Cooperative, although already in their

50 year, is still in the process of expansion. The cooperative plans to
th

expand in Mindanao. There are three branches currently in the works this
year in order to achieve the twenty-six (26) branches in total by the end
of 2019. With the increase in demand for rice, the cooperative is set to
open another rice mill in Oriental Mindoro.

VII. INSIGHTS

Sorosoro Ibaba Development Cooperative is known to be one of the

largest cooperatives in the Philippines. SIDC is home to different types of
business ventures that are essential to locals and its members as well. Its
ventures vary from minimarts to feed millings to agri-veterinary products.
Aside from the multiple businesses, SIDC also offers contract-growing to
both members and non-members.

Incentives provided by the cooperative is beneficial to the

members. The system of the cooperative is fair to all members and is very
coordinated. These incentives I think is one of the main reasons why the
number of SIDC members is continuously increasing over the years.
GOURMET FARM

I. BACKGROUND INFORMATION

Gourmet Farms started out as a coffee trader in 1978. With the

vision of introducing the Filipino consumers to the best quality coffee
beans, Ernest de Leon Escaler established Gourmet farm and has been
one of the biggest coffee traders in the Philippines until this day.

Mr. Escaler’s first trial was with sample packs of coffee beans that
were roasted in small batches. With the success of his first few trials, he
decided to purchase a German-made Probat roaster which is considered
as the best and the most expensive roaster. This resulted to Gourmet
Farms being the first commercial roasting facility in the Philippines. The
Probat used then still stand in the factory along with a new computerized
Probat. The new computerized Probat can generate up to 150 tons of
roasted coffee per month.

The organic farm concept of the business was inspired by the small
organic farms that Mr. Escaler saw in one of his trips in the United States.
The organic farm started out with only lettuce and culinary herbs. With
the local’s lack of knowledge in organic farming, Mr. Escaler decided to
build a café wherein harvests from the farms are made as salads and
dressings. The café offered pastas, pizzas, salads and even teas. The
unique concept of the café caught the attention of many, and Gourmet
Café became a success not only in Tagaytay but nationwide.

Vision

To be the top-of-mind brand for gourmet coffee, farm

produce and kitchen exclusives that is proudly Filipino and at par
with the world’s best

Mission

Freshest. Finest. First.

 II. PLANTS AND LIVESTOCK

PLANTS

Gourmet Farms has 11 hectares of land and 5 hectares of farmland.

The area allotted for farming is utilized well by numerous crops with
different varieties. Listed below are some of the crops that were either
seen or discussed during the trip:

1. Lettuce – This crop has several varieties which are grown in the farm
namely: Green Eye, Romaine, Arugula and Ruby. All these varieties are
then either sold in the café, in supermarket partners or used in salad
making.
2. Thai Basil – Gourmet Farms stated that Basil was one of their produce
that has great demand that has the price of six hundred pesos (PHP
600) per kilo. Due to the Downy mildew in Basils four years ago, they
decided to get basil in different areas in the Philippines in order to
provide for their customers.
3. Kale – Kale is known to be the healthiest green.
4. Rosemary
5. Cinnamon
6. Banaba – Gourmet Farms uses Banaba in one of their tea mixes which
were served during our tour.
7. Sage
8. Thime
9. Pito-Pito
10. Curled Parsley

LIVESTOCK

1. Carabao – The farm makes use of traditional ways of cultivating of land

and soil preparations.
2. Civet Cat – The civet cat was located near the entrance of the farm.
With a special diet of coffee bean and other organic foods, this
creature is known to be the producer of the most expensive coffees in
the world ranging up to one thousand seven hundred pesos (PHP
1,700) per kilo.
3. Worms – Vermiculture is also practice in Gourmet farms.
 III. ORGANIZATION

Gourmet Farms is a part of Refreshers Food & Beverage Inc., which

is registered under the Food services and Drinking Places industry which
aims to serve the “freshest, finest, first” and to compete with
international brands or farms. They aim to be a household name in terms
of organic farming and café. Gourmet farms also take part in Corporate
Social Responsibility in terms of helping their farmers who toke part on
growing the coffee in Benguet.

IV. PRACTICES/ OPERATION

Being an organic farm, Gourmet farms makes use of organic

fertilizers rather than synthetic fertilizers. There reason for the existence
of vermiculture in Gourmet Farms is to ensure that its produces are
organic and are free from chemicals and artificial remedies such as
pesticides. However, it is stated before that Gourmet Farms is a semi-
organic since they are in a commercial scale of business. A completely
organic produce will cost a lot both in production and in the market.

Gourmet Farms have their own facilities for production. Roasting

facilities and manufacturing plants are seen in the estate as well as
storage facilities especially that they import they arabica coffee beans
from Vietnam.

V. COMPANY ISSUES AND PROBLEMS

High Maintenance and Production Cost

Gourmet Farm is operating an organic farm where costs are indeed

high to ensure quality produce are generated. Organic fertilizers and
pesticides are relatively more expensive than artificial ones. Strict
compliance to organic farming is costly however the payback of the costs
somehow masks the expense of producing.

Climate Change and Diseases

The gradual changes happening in the Earth’s climate greatly

affects farm productivity. Sudden and drastic droughts and/or storms can
destroy crops in an instant and would lead great loss to crops. These
changes can also lead to crop diseases. A shift in the climate pattern can
 introduce pests in the area that can destroy crops and malnutrition can
arise due to excessive of lack of water in the soil.

Perishability

Perishability is one of the greatest enemies in farming especially in

organic farming considering that they do not use chemicals to make the
produce look good and fresh. In transporting the produce to the different
distribution points, time is critical. A mere delay in the delivery can cause
thousands of pesos for Gourmet Farm

VI. PROCESSING FACTORS

a. Processing Technology

During the first years of establishing, Gourmet Farms invested on a

high-quality roaster made in Germany from the brand Probat. This type of
roaster is considered as the ‘Rolls Royce of coffee roasters’ that is also
seen in international mass coffee related businesses. In recent years, the
farm got a new computerized roaster of the same brand.

b. Location

Gourmet Farms is situated in Km., 52 Emilio Aguinaldo Hwy, Silang,

Cavite. With a wide array of crops and trees being grown here, Cavite is
one of the best location choices to set-up a farm. The temperature is
relatively colder in most months of the year compared to that of in the
lower neighboring areas such as Laguna and Batangas, making it more
suitable for growing selected herbs and crops. Silang, Cavite is an uphill
area, therefore farmers practice intercropping to increase land
productivity and lessen the erosion of the soil.

c. Supply Sourcing

Supplies comes from both locally and internationally. Coffee beans

sold in Gourmet Farms are from Benguet, Batangas, Vietnam, Papua New
Guinea, etc. Crops are grown in Silang, Cavite.
d. Control Methods

Gourmet Farms have their Plan B’s ready all year round in case of
emergency. Every cropping season, they plant all crops in plots and in
greenhouses to secure a decent number of crops to be saved in case a
crisis arises especially regarding the environment.

Gourmet Farms practices polyculture to cultivate multiple variety of

crops in a cropping season. Given the large land area that Gourmet Farms
have, the number of produces can supply the demands of the customers.

e. By-products produced and Uses

Lettuce chips and the pesto sauce or dip that are available in the
store are example of by-products. This is related to the zero-waste
advocacy or policy of the farm.

VIII. MARKETING FACTORS

a. Major Market

The main market of Gourmet Farms is the upper class. Most of the
distribution points of Gourmet Farms are those who caters those of higher
social classes. Considering that produces from the farm is organic and
expensive, the business targets upper class for faster sales. Apart from
upper class, Gourmet farms also caters to HORECA that has larger
demands, requires fresher harvests and has a very strict standard quality
procedures to follow.

b. Distribution Outlets

Gourmet Farms distributes their products and produce in numerous

places. Not only do they have physical distribution points, but they also
have online distribution via Shopee. Listed below are the different
distribution points of Gourmet Farms.

1. Rustan’s
Taguig
Ayala
Rockwell
2. SM Supermarket
 SM Aura
SM Makati
3. Robinson’s Place Manila
4. Landmark (Makati)
5. UP Town Center
6. Shopwise Alabang
7. S&R Sta. Rosa
8. Landers

VII. FUTURE TRENDS

Gourmet Farms aims to be a well-known coffee brand and a source

of quality produce. The farm wants to be recognized in the international
scene and by international market. They also plan to renovate the country
store located at the entrance of the farm in order to cater and attract
more customers and provide a separate pastry store for breads and
pastries that are to be sold in the store.

VIII. INSIGHTS

Gourmet Farms handles the organic farming practice well.

Considering that one of their main customers is Rustan’s, says a lot
regarding the quality of the produce of the farm. Their farm management
is top notch considering that they rarely encounter problems.

With the current status of Gourmet Farms, it’s not that impossible
for them to gain international recognition when in comes to organic
farming and their products. However, in terms of coffee trading and
grading I don’t think they are ready for international competition.
ILOG MARIA

I. Background Information

The owner started only with one colony and enjoy bee farming as a
hobby. However, when a friend gave them many bees, they started to put
the bees into use. Ilog Maria is a product of family interest and hobby, the
Magsaysay family started with no concrete plan on how to manage the
business and what the future holds for Ilog Maria. The first thing that they
did was to find the most accessible place to their raw materials and is the
most suitable for bee farming. They opt to find a place far from residential
areas, this is in order to ensure that the bees are far from the pollution of
the urban areas for the bees to be at their best for pollination and
production of honey.

Currently, Ilog Maria not only offers simple honey, but they also
produce skin care, pollen, candles, waxes, essential oils and hygiene care
to say the least of their products.

II. PROCESSING FACTORS

a. Processing Technology

Ilog Maria makes use of traditional processing technology. People

extract honey from hive box. There are layers of honey in the hive box
and the top layer that encloses the honey is called the beeswax which is
considered a by-product but Ilog Maria utilizes it and processes it as
moisturizers. Centrifugal extractor is used to extract the honey and is
later on filtered to remove any impurities.

b. Location

Ilog Maria is located at 47 Aguinaldo Highway, Lalaan I, Silang

Cavite. The Magsaysay family chose this area due to the abundance of
natural resources that are the source of raw materials. The area is
suitable for bee farming and growing of coffee. It is also advantageous
that there are good weather and temperature conditions in Silang. It is
also believed that the land in Silang is rich in volcanic soil.  
c. Inventory Management

Ilog Maria does not have any storage facilities because the
management wants to provide freshly made products for their customers.
Since most of their products doesn’t have harsh chemicals, they don’t
stock up. They do not exhaust their bees, they only process products
when there are decent amount raw materials.

d. Supply Sourcing

The bees in Ilog Maria are Philippine Stingless bees, Apis cerana and
Apis dorsata. They also import bees from Australia and Hawaii these bees
are responsible for the production of honey, propolis, pollen and royal
jelly.

e. Control Methods

Ilog Maria makes use of their own wind turbine, solar power
generator, power amplification and hydraulic rams. This equipment
provides sustainable energy for the farm and somehow lessen their
electricity consumption.

f. By-products produced and Uses

Several of the products offered by Ilog Maria are made from by-
products. Listed below are some of the by-products that are available in
market:

Honey Cider Vinegar

Honey Propolis Mist
Cleanser Moisturizer
Honeymilk Lotion
Face Oil
Hair Oil
Feminine Wash
Toothpaste
Sanitizer
Throat Spray
Ointment
 Cider Liniment
Eye Drops

III. MARKETING FACTORS

a. Major Markets

According to the owner their major market are travelers. These travelers
and/or visitors tend to go back to Ilog Maria after their first purchased due to
the good quality products that they offer. Travelers don’t only go to Ilog
Maria for the products but also for the ambience of the area.

b. Products

Honey, Pollen pellets, propolis and royal jelly are the main products
that can be produced from the hives. Ilog Maria has a wide array of
products that can cater to different need of their customers. Listed below
are the products available for purchase:

SOURCE PRODUCTS
Honey Virgin Honey
Honey Cider Vinegar
Honey Propolis Mist
Propolis Gold
Propolis Throat Spray
Ointment
Cider Liniment
Eye Drops
Feminine Wash
Toothpaste
Sanitizer
Royal Jelly Fresh Frozen Royal Jelly
Cleanser Moisturizer
Honeymilk Lotion
Face Oil
Hair Oil
 Beeswax Lip balm
Sunblock
Balsam
Clay
Candles
Soaps & Spa Cinnamon-scented
Milk & Honey-scented
Green Tea-scented
Shaving Soap
Propolis Pet Soap
Eucalyptus Bath Gel
Massage Oils

c. Distribution outlets

Ilog Maria have different distribution outlets in order to reach their

market. Since the farm and Ecostore is situated in Silang, Cavite they
made sure that they would somehow get the products closer to their
markets as possible. The following are their current distribution outlets:

Ecostore
All-Day Supermarket
Alabang Vivere Hotel
Delivery or Shipping nationwide (From Facebook, Twitter and
Instagram)

d. Promotion Strategies

Ilog Maria makes use of social media platforms to promote their

products and services. Aesthetically pleasing layouts on social media is
one of the ways that Ilog Maria promotes. They also provide free sample
of honeys to travelers and visitors.

IV. FUTURE TRENDS

The owner of Ilog Maria aims to gain international recognition in

beekeeping in the future. Improvement of the farm location is one of the
main goals of the management in the next few years in order to increase
possible customer reach.
V. INSIGHTS

The Magsaysay family considers Ilog Maria not just as a business.

It’s more of a family bonding and sharing of interest. The foundation of
the business is intimate and until now, family members are hands-on and
are dedicated to the business. With the current trend with skincare I think
products from Ilog Maria can compete with mainstream brands especially
that they produce quality and safe goods that have so much potential in
the market.