Summary:

- Leading University: Isabela State University

- Local partner: Parents and Youth of Gamu/Kapatagan Multipurpose Cooperative (PAYO-Ga/Kapatagan)

1. Context

The organization started in 1985 as a youth organization. It later connected with adults and farmer’s organizations, thus shifting into a Parents and Youth organization - hence the name PAYOGA (PArents and YOuth of GAmu) with focus on problems of farmers and ways to solve these.

In 1989, PAYOGA started with bio-organic fertilizer making in response to the prevailing monoculture farming and chemical fertilizers. Some years later, it started providing loans to farmers (paluwagan system, at first). In 1992, it was registered as a Multi-Purpose Cooperative (named KAPATAGAN) with focus on training, leadership, organic farming, and organic fertilizer production. The people’s organizations, Payoga and the cooperative Kapatagan were integrated later and renamed Payoga-Kapatagan; thus becoming a Social Enterprise. The expanded cooperative now offers loans (both for organic farming and conventional farming); Bio Organic Fertilizer Production and Marketing; Nursery and production of fruit and forest trees seedlings; Trading and Marketing of Agricultural Products; Organic Demo Farm which serves as showcase for Organic Farming; Training and Seminars; Fresh from the Farm Organic Restaurant promoting healthy lifestyle and organic foods; Vermi-worm composting; Native swine breeding and dispersal; Production of Bio-N; Tractor service; Drying services for corn and rice; and Disaster Rehabilitation program. The organization has no formal agreements with Local Government Units but Payoga-Kapatagan provides various kinds of seminars and trainings for them. The group has been working with several government agencies like the Department of Agriculture and Department of Environment and Natural Resources also with NGO’s/NGA’s like the Foundation for Sustainable Society Inc (FSSI) and World Wildlife Fund.

The main product of the organization is the organic fertilizer – “Greenfriend”. Payoga needs to produce 450,000 bags(of 50kg) of organic fertilizer to supply the demand for the product. Eighty percent of its total produce is supplied to Government agencies like Department of Agriculture, Department of Environment and Natural Resources and Local Government Units, all of which are promoting Organic Agriculture in the region. The remaining 20% is sold to the farmer-members who pursue organic farming. Fertilizer is sold for Php240.00/bag if the buyers are member of the cooperative, Php250.00 if bought wholesale and Php270.00 for retail price. In the past few years, the organization had a system where used sack of the fertilizer are returned by the farmers to the manufacturing area to get some discount whenever farmers buy fertilizer again. But a former coop member and employee used the returned sacks for packaging duplicate product, and sell these to the same customers of the organization, so this was discontinued. Due to the ease in processing and duplication of the packaging, management is looking for a unique design for the sack to make it more attractive and tamper-proof to avoid duplication. They don’t use organic packing, because they still didn’t find an organic packaging that is sturdy enough.

Also the physical aspect of the fertilizer can be improved. Now it is powder, so it is difficult to scatter it on the land if there is a bit of wind. It would be better if it were granules or pallets (like dog food).

On the production aspect, lack of labor is being experienced by the cooperative. A lot of work force have found a job in the construction area, because the government is promoting that. It cannot sufficiently produce enough organic fertilizer due to the high demand for the product. At the moment, 50 to 70 people are working to make the fertilizer. During peak season (January – September), intensive labor is critically needed because of activities that need manual labor; pulverizing of substrates by hand is still practiced, and this consumes a lot of time in the preparation of fertilizer. A major concern is the smell of the fertilizer being processed during decomposition; the community near the production site are complaining about this. The cooperative use some of ways to eliminate odor, e.g. covering the pile of materials undergoing decomposition to contain the odor. However, people can still smell the stench whenever they pass by within the manufacturing area.

2. Description of the cooperative

The organization, at its present status, is strong and can help in the advocacy and promotion of organic farming and social enterprise. However, most of the farmers in the region don’t easily shift from practices they are accustomed to, such as from conventional farming to organic farming. Farmers are very concerned on the profitability of going into organic farming. Using synthetic fertilizers and inorganic chemicals give higher revenue as compared to organic. This is one of the reasons why people are somewhat resistant in adopting the system of organic farming.

Farmers don’t know how to use the organic fertilizer and therefore think it doesn’t work. Payoga gives training and workshop, especially on technology and how to farm organically.

Payoga doesn’t have the certificate of organic product. Julie really wants to start the process to obtain this certificate. They have to meet many conditions/

It is also a challenge to keep a solid production because of the climate change. They produce in open areas and by a typhoon, everything was washed away. They also use the problem of Climate Change to promote their products.

3. Challenge

The students could:

• Help the organization to improve the packaging and propose ideas that may add value to the all the products available in the organization
• Propose cost efficient technologies, eliminating the odor of fertilizer in the production site
• Design a low-cost pulverizing-cum-shieving machine in order to produce consistently finer raw material particles in making the finished OF product
• Help the people of the organization and improve the operation of their enterprise in efficient manner.

4. Risks (Issues and concerns)

Natural calamities, Time,