PROJECT PROPOSAL

I. PROJECT TITLE : The Establishment of Bagsakan Center in the Municipality of

Aroroy, Province of Masbate.

II. PROJCET TYPE : Marketing Infrastructure/Post-Harvest Facility.

III. PROJECT PROPONENT : Local Government of Aroroy, Province of Masbate.

IV. SOURCE OF FUND : Department of Agriculture

Bagsakan Center Program

PROJECT DESCRIPTION:

The proposed bagsakan center will be located at the town proper, opposite the Municipal Hall
and adjacent to Aroroy Trial Court Office, where it can draw costumers easily, supply of public and
private services are adequate and labor are readily available. The center will serve as municipal based
food depot and distribution center of vegetables, fruits, root crops and other agricultural products.
Aside from the consuming public, farmers, traders and processors from forty one (41) barangays of
Aroroy and adjacent municipalities will benefit for the project.

The proposed site has a lot area of 400 square meters and the building structure has a floor area
of 120 square meters.

OBJECTIVES:

Generally, the objectives of this project is to provide an alternative source of livelihood for
farmers, women, unemployed and marginalized individual and help augment farm family income.

Specifically, the project aims to:

1. Develop alternative market for farmers produce through direct marketing.

2. Strengthen partnership of the different stakeholders in the delivery of basic services.
3. Make available and accessible quality food products at the municipal level.
4. Ensure stable price and supply of food commodities.

MARKET ASPECT

Aroroy is considered one of the largest municipalities in the province of Masbate and inhabited
by almost 80,850 people with the additional consumers from FILMINERA GOLD CORPORATION
workers/employees that have a higher demand for local vegetables, fruits ,root crops and other
agricultural and fishery products.
Agricultural products from upland and coastal barangays within the municipality of Aroroy and
from the neighboring town will be consolidated at the Aroroy bagsakan center for direct marketing and
the same way basic commodities delivered at the center can be procured and be sold at the barangay
level. Farmers and fish processors can directly sell their produce/goods at the bagsakan center. Fruit and
vegetable dealers/traders who usually dumped their goods at the front of municipal hall can now use
the center.

a.) Demand
1. At 80,850 population multiply to 85% as primary consumers.
= 68,772 primary consumers
2. 1,442 employees from FILMINERA GOLD CORPORATION
 b.) Supply
Profile of covered brgys in the proposed Bagsakan Center

Distance
Areas covered Products To
Poblacion
1. Jaboyoan Coconut, rootcrops, vegetables, fruits, livestock, fish and native .7 km
chicken
2. Tinago Coconut, rootcrops, vegetables, fruits, livestock, fish and native 3 km
chicken
3. Talabaan Coconut, rootcrops, vegetables, fruits, livestock, fish and native 1 km
chicken
4. Bangon Coconut, rootcrops, vegetables, fruits, livestock and native chicken 2.5 km
5. Syndicate Coconut, rootcrops, vegetables, fruits, livestock and native chicken 5 km
6. Pinanaan Coconut, rootcrops, vegetables, fruits, livestock and native chicken 7 km
7. Puro Coconut, rootcrops, vegetables, fruits, livestock and native chicken 4 km
8. Amoroy Marine/fishery products 6 km
9. Panique Coconut, rootcrops, vegetables, fruits, livestock and native chicken 8 km
10. Lanang Coconut, rootcrops, vegetables, fruits, rice, livestock and native 10 km
chicken
11. Luy-a Coconut, rootcrops, vegetables, fruits, livestock and native chicken 11 km
12. Malubi Coconut, rootcrops, vegetables, fruits, livestock and native chicken 12 km
13. Nabongsoran Coconut, rootcrops, vegetables, fruits, livestock and native chicken 14 km
14. Managanaga Coconut, rootcrops, vegetables, fruits, livestock and native chicken 16 km
15. Cabangcalan Coconut, rootcrops, vegetables, fruits, livestock and native chicken 14 km
16. San Agustin Coconut, rootcrops, vegetables, fruits, livestock,native chicken and 3 km
marine/fishery products
17. Balawing Coconut, rootcrops, vegetables, fruits, livestock,native chicken and 7 km
marine/fishery products
18. Matalangtalang Coconut, rootcrops, vegetables, fruits, livestock,native chicken and 3 km
marine/fishery products
19. Don Pablo Coconut, rootcrops, vegetables, fruits, livestock and native chicken 4 km
20. Talib Coconut, rootcrops, vegetables, fruits, livestock, native chicken and 4 km
marine/fishery products
21. Tigbao Coconut, rootcrops, vegetables, fruits, livestock,native chicken and 5 km
marine/fishery products
22. Sawang Coconut, rootcrops, vegetables, fruits, livestock,native chicken and 7 km
marine/fishery products
23. Concepcion Coconut, rootcrops, vegetables, fruits, livestock and native chicken 12 km
24. San Isidro Coconut, rootcrops, vegetables, fruits, livestock, native chicken and 11 km
marine/fishery products
25. Capsay Coconut, rootcrops, vegetables, fruits, livestock and native chicken 9 km
26. Bagauma Finished food products .3 km
27. Pobalcion Finished food products On town
proper
28. Calanay Coconut, rootcrops, vegetables, fruits, livestock, rice and 20 km
marine/fishery products
29. Dayhagan Coconut, rootcrops, vegetables, fruits, livestock ,native chicken and 15 km
marine/fishery products
30. Macabug Coconut, rootcrops, vegetables, fruits, livestock and native chicken 18 km
31. Municipality of Rootcrops, vegetables, fruits, livestock and marine/fishery products 15 km
Baleno
32. Municipality of Rice, vegetables, fruits, and marine/fishery products 35 km
Milagros
33. Municipality of Rice, vegetables, fruits, and marine/fishery products 3o km
Mandaon

c.) Marketing Strategies

1. Product – All products will be bought fresh from the different suppliers and sold to
the traders/consumers also fresh. All Agricultural and fishery products will be
 accommodated but all products will undergo proper sorting and good inspection for
the safety of consumers.
2. Price – Will be bought and sold the products in kilo per transaction. The farm level
price will be adopted.
3. Promotion – The site will be posted the monitored market price to encourage the
buyers/consumers/traders for having lower prices as compared from the local
public market. Farmers producer and or supplier will be exempted from taxes for
the first year operation of the bagsakan center to encourage them to sell their
products at the bagsakan center.
4. Place – The site will be located at the town proper adjacent to Aroroy Trial court and
opposite to the Aroroy Municipal Hall.
5. Positioning – The building structure is permanent and owned by the government
that will serve as municipal food depot trading post of agricultural products and
basic commodities in the municipality of Aroroy.

TECHNICAL ASPECT

As based on wage goods profile, the center can offer plentiful supplies of agricultural and
processed fishery products like fruits, vegetables, root crops, coconut and dried and salted fish.

Farmers who will be expanding its farm area and planning to engage in agribusiness ventures
shall be closely monitored and be provided with technical assistance by the LGU.

Once the center is on operational phase, delivery of farm produce, goods and basic commodities
shall be scheduled three times a week every Monday, Wednesday and Friday to avoid marketing
competition with retailers and public markets stall occupants.

ORGANIZATIONAL AND MANAGEMENT ASPECT

The overall management of the center shall be handled by the Local Chief Executive. The LCE
shall designated/assign an Operation Manager of the Bagsakan Center who shall oversee the
management and operation of the project. All financial transactions shall be handled by the Finance
Officer while sales cashiering/bookkeeping shall be the responsibility of the Cashier/Bookkeeper. The
one storekeeper will be also hired.

1. Administrative staff

OPERATION MANAGER:
 Oversee the overall operation of the project.
 Responsible for planning and critical decisions which may affect the bagsakan center
operation.
 Undertakes procurement of goods including canvass for suppliers and placement of
orders.
 Set selling prices.

CASHIER/BOOKKEEPER:

 Responsible for the collection of sales and account receivables and also for cash
disbursement.
 Maintain daily record of accounts.
 Prepare daily sales and inventory reports.

STOREKEEPER/HELPER:

 Counter salesman.
 Update prices at price bulletin board.
 Undertakes stock inventory.
  Maintain volume and quality of food products on display.
 Operate/maintains cold storage.
 Maintain food safety.

2. Organizational Structure

AROROY BAGSAKAN CENTER

Sangguniang Bayan MAYOR Municipal Agriculture &

 Fishery Council

OPERATION MANAGER

CASHIER/BOOKKEEPER STOREKEEPER/HELPER

TIMETABLE OF IMPLEMENTATION ACTIVITIES:

PERIOD OF RESOURCES BUDGET RESPONSIBLE

ACTIVITIES IMPLEMENTATION NEEDED REQUIREMEN OFFICES/PERSONS
T
Pre – Implementation phase
Consultation with 3rd week of Project MAO/LCE/SB
municipal officials on pre January 2010 proposal, flyers Members
and actual operation
requirements and
policies.
Conduct of SB meeting 4th week of Project MAO/LCE/SB
on the approval of SB January 2010 proposal, Members
resolution. Guidelines
Submission of Eligibility 4th week of Approved SB 5,000.00 MAO Personnel
requirements to DA, RFU January 2010 resolution,
no. 5 Project
proposal
Approval of the project February 2010 Project LCE and Regional
proposal Executive Director
BC Management Training 1st week of March Training 30,000.00 DA BC Mgt Team
2010 modules
Implementation Phase
Construction of the March to July Approved 850,000.00 DA/LGU
building 2010 POW, Fund
support
Procurement of June to July 2010 Fund support 150,000.00 DA/LGU
Equipment
Information campaign on 1st week of August Flyers, 10,000.00 MAO Personnel
BC Operations & 2010 Billboard
Installation of billboard
Launching of BC and 2nd week of MAO Letters 10,000.00 LGU/DA/BC Mgt
MAO Signing August 2010 Team
Start of BC operation 2nd week of Working 300,000.00 LGU
August 2010 Capital
Post - Implementation
Submission of Progress Monthly starting Reports MAO/BC Mgt
reports August 2010 Team
Monitoring and Monthly starting M & E Forms LGU/AMAD/DA
Evaluation August 2010
 FINANCIAL ASPECT
Table 1. TOTAL PROJECT COST

SOURCE OF FUND

PARTICULARS TOTAL
DA LGU
(Grant) (Counterpart)
1. Building Equipment 850,000.00 850,000.00
2. Procurement of Equipment 150,000.00 150,000.00
3. Initial Working Capital 300,000.00 300,000.00
4. Lunching & Promotional Activities 20,000.00 20,000.00
5. Travel expenses 5,000.00 5,000.00
6. Management training 30,000.00 30,000.00
TOTAL PROJECT COST 1,000,000.00 355,000.00 1,355,000.00

SOCIO – ECONOMIC IMPACT

The value of the proposed project to the local economy and society general is viewed in terms
of its perceived contribution to the attainment of government’s social and economic objectives. It can
be measured in terms of benefits that are expected to accrue to its direct beneficiaries.

This project can help support government’s efforts to generate employment opportunities
through direct employment of personnel and laborers. This can also help augment the income of farm
family.

This project is expected to bolster the growth of the agricultural sector in the locality. Renewed
interest in farming will result to additional area in hectare to be planted for crops thus increasing crop
production. The project has also an impact on the institutional level with the growth of people
participation in articulating the interest of the rural sector. Further, it will provide opportunity for the
proponent and other participants to mature professionally from its business experiences; trainings and
education and networking activities thus increase socio-economic participation within the community.

On the consumer‘s side, quality goods can be made available, safe and affordable.

PROJECT ANALYSIS
Since the LGU is operator of the Bagsakan Center, it has an edge as compared to business
enterprises, since there is an assurance of technical capability and expertise with regards to operational
and management capability.

With laws and ordinances, the project operation and prices of commodities/farm produce will
be properly monitored and safeguarded by the implementing agency.

Having market assurance, farmers will be encouraged to go on farming and to engage In other
agri-business.

Prepared by:

ENGR. ARVIN T. OSTIA ENGR. MARK ANTHONY C. SALACUP

Agricultural Technologist Agricultural Technologist

Recommending Approval: Approved:

MARILYN C. VELASCO ENRICO Z. CAPINIG

Municipal Agriculturist Municipal Mayor

ANNEX 1