Summary

Leading University: Nueva Vizcaya State University (NVSU)

Local cooperative: Agrizkaya Cooperative Federation

1. Context/ introduction

Agrizkaya Cooperative Federation (ACF) as a social enterprise is a secondary cooperative (see Appendix 1). It was established in 1995 by Rev. Fr. Gerard Bouckaert, a CICM Missionary, who was instrumental in soliciting funds from a boerenbond (farmers’ coop) in Belgium. Accordingly, it was in 1993 that a one-hectare lot at Maharlika Highway, Almaguer North, Bambang, Nueva Vizcaya which is along the national highway, was purchased at around P650,000.00. It was followed by the construction of its warehouse, the first building erected on the property. Fund sources were basically from grants and aids. After 10 years of operation, it became dormant for 5 years which was in 2005 – 2010.

2. Client/organizational profile

Living up to ACF’s vision, mission and goal of being the “Organic Bowl of Northern Luzon” (Appendix 2) and with Rev. Fr. Gerard’s untiring dedication to the federation, on April 2010, business resumed under Ms. Eden D. Lacar, the General Manager till now. The whole of the management and staff is composed of the general manager, in-charge of marketing, in-charge of processing, cashier, bookkeeper, and storekeeper. With their small number, they manage the operation of the business by multi-tasking. Currently, it has 53 primary cooperative members, including the 2 biggest in the province which are the Tam-an Multipurpose Cooperative (MPC), and the Alay Kapwa MPC. ACF was privileged to be a recipient of a 3-year (2017—2019) funding for its new project on organic production and marketing. Initial funds received were used as working capital, construction of a trading center housing the office, display area and processing area, and establishment of a 4-hectare organic farming demo farm in Oyao. This year’s released funds is for the construction of a green house. In the demo farm, the management envisions the construction of a hall basically made of local materials. The Board of Directors shelled out some amount for the purchase of fruit trees to be planted on the other side of the green house.

The main purpose is to strengthen the member cooperatives through centralized marketing of inputs and products, technical and financial assistance, training, education & information, and administrative assistance like bookkeeping, accounting and auditing services.

• Products Offered

As a Pasalubong Center, it sells an array of manufactured goods of other local producers usually introduced in trainings and seminars attended by management and staff. These goods include flavored teas, fruit wine, chips, and native woven products, etc. A few goods – national brands at that are also sold in the center (Appendix 3).

As an organic store, its product mix (Appendix 4) is composed of farm inputs (plant supplements, liquid fertilizer, complete fertilizer, plant growth stimulant and soil conditioner, microbial inoculant, bio nutrients); organic vegetables like squash, lettuce, tomatoes, onions, red pepper, yakun, and ginger); organic ordinary rice (brown, red, black, glutinous rice and rice flour; processed/preserved food products (jams, jellies, wine, chips, squash powder - at times of excessive supply where price can go as low as P5/kg against a favorable price of P28/kg) .

Rice is packed in plastic at different weights like 1 kg, 2 kgs, and 25 kgs. Processed and preserved food products are in plastic and breakable jars and bottles. Almost all of the goods displayed are packed and labeled.

There is an aided monitoring as to what real organic produce are. Goods are subjected to an assessment using a testing kit and chemicals. The same process is applied to goods produced and supplied by outsiders. Weekly monitoring is practiced to ensure a chemical free supply. NVSU facilitated the sourcing of this equipment from the University of the Philippines at Los Banos.

• Services Offered

ACF extends not only cash loans to farmers but also in kind like fertilizer, seeds, etc. at 0 interest. Agrizkaya trainings on organic farming, financial management, etc. are organized and conduced not only for coop members but also for interested non-members.

• Pricing

A certain Mr Dizon, a buyer from Manila, is a steady market for ACF. Everything he will buy at P10/kg higher than the non-organic poducts. Deliveries outside the province like in Ilagan, Isabela are charged P300/50 kg.

• Place

The biggest buyers outside Nueva Vizcaya are from Isabela and Manila. They place their order via phone call. Once the order is available, it is immediately packed and sent at once through Victory Liner - bus company. Most of their orders are organic rice. Vizcaya Fresh which is also a marketing arm of local organic farmers, is totally dependent on ACF for organic rice.

3. Challenge/problem analysis

• on line marketing/on line highway – logistic support for small businesses is currently on deliberation
• to have a shop at the Pasalubong Center in Busilac, Bayombong, Nueva Vizcaya
• tourists pass by ACF going back to Manila, they may want to take some products with them as a souvenir.
• livestock & free range chicken production on its initial stage

For this start-up, the following needs were identified:

• Research on which products can be sold
• Research on transport (how will the products be transported from the member cooperatives to the trading center?)
• Research on how distribution will be organized
• Need of packaging and branding of products
• To draw up a business plan
• To store the products
• To preserve the products
• To set up a selling campaign
• insurance – 2018 losses due to typhoon
• Site Development Plan

The goals they want to reach for the Trading Center:

• Create social enterprise that handles the Trading Center.

o A shared facility with a management by a functional entity

o Balancing production and supply

o With a trading function and processing function (excess of production that is not sold can be processed)

• On the building

o Sustainable infrastructure/Typhoon proof/earthquake proof

o Sustainable energy

o Storage capacity (need for cooling facility)

• Economic model

o Write business plan/business model/growth model

o Risks analyses

• Set up organizational structure
• Stake holder analysis
• Funding
• Capacity building for entrepreneurs
• Transportation of goods

o Collection from producers

o Need for conditioned transportation?

• Possibilities of working together with San Dionisio Coop (Manila)?