Sto. Niño Multi-Purpose Cooperative (SNMPC) in Butuan City is now reaping the profit of Department of Agriculture’s (DA) agricultural modernization projects.  The cooperative was organized in 1991 with only 25 members composed of rice farmers. They started their operation on rice milling business from a bank loan. But over the years, the equipment and facility procured were already inefficient. This causes for their operation to be less productive.

“For almost 20 years of our rice milling operation the equipment and facility that we have, were already depreciated and less efficient. This became a hindrance for our customers tried to find another miller which can provide them a better quality output.

But thanks to DA’s intervention through Agri-Pinoy Rice Program, the department provided us the Rice Processing Center (RPC) a facility that we need to upgrade our operation,” said Marilyn Aranas, Chairperson of SNMPC.

In 2013 the cooperative was a recipient of RPC worth ₱4.5 million in which 15% of the total amount was the cooperative’s counterpart. The center has a two-ton-per-hour multi-pass rice mill that gives the farmers 65% rate of recovery of their produce compared to small rice millers that only gives 50%.

RPC is a facility that showcases efficient rice postharvest operation through mechanization and automation. It ensures savings in labor cost, lesser losses, enhanced quality, improved distribution system and maximized use of buy-products.

“The facility is cost and energy efficient and makes our operation more productive. Before, the milling capacity was only 10 sacks per hour but today through the RPC it doubled to 20 sacks per hour. This time, we can accept customers thru market linkages who need order by volume every month,” said Ms. Aranas.

Aside from their walk-in clienteles SNMPC has established a marketing agreement with Mangagoy Fishermen Cooperative (MAFISCO) and San Roque Farmers & Displaced Workers Cooperative from Bislig City. They also have market linkages to Sto. Niño Consumers Cooperative from Magallanes, Agusan del Norte and Gingoog Rice Retailer from Gingoog, Misamis Oriental.

According to Ms. Aranas, an average of 2,430 sacks of rice (50 kilos per sack) valued at ₱ 4,700,900 were sold every month to their identified buyers. DA-Marketing Assistance Division assisted the cooperative to make market linkages for potential buyers, she added.

The cooperative is now capable to produce premium milled rice. The enhanced rice quality through the use of the multi-pass rice mill serves an avenue for the National Food Authority (NFA) to link partnership with the cooperative through a milling contract.

Furthermore, DA also provided pre and post-harvest facilities with a total worth of ₱ 2.2 million. Over the years the following equipment were granted to SNMPC: 3 units of flat- bed dryer, 4 units of multi-purpose drying pavement, 1 unit hand tractor and 1 unit rice transplanter.

Based on the cooperative’s financial statement the total sale for the year 2011 was ₱17.7 million. While in 2012 it has a total sale of ₱ 21.4 million, or an equivalent of 17% increase. In 2013 a drastic increase of sales was recorded amounting to ₱ 33.2 million, or an equivalent of 35% increase was achieved.

This shows that the establishment of RPC is not only a service facility but an enterprising venture for farmers to do and learn how to run an agri-business operation to the best of their ability.

“Today we have 360 active members of the cooperative. SNMPC members are now receiving their dividend, before the coop is incapable to give the dividend because the operation is not profitable. We are very thankful for the Department of Agriculture in restoring back our profitable operation. Now, we saw the great advantage on our part if we have our rice produced milled at the RPC,” said Ms. Aranas.

For the past 5 years (2011-2015), SNMPC has a yearly total asset worth of ₱ 10.2M, ₱ 11.6M, ₱ 16.4M, ₱ 20.4M, and ₱ 21.6M respectively.

For years, DA continues to provide the needed support to empower the farmers in Caraga and increase productivity. Through its Rice Program, mechanization is placed as one of its top priority. (Rhea C. Abao, DA-13 Information Section)