To assure the establishment of a cassava market, the Department of Agriculture-Caraga (DA) through the Philippine Rural Development Project (PRDP) updated the marketing agreement between the A&M Multi-purpose cooperative (A&M) in Dinagat Islands and Fatima Multi-purpose Cooperative (FMPC) in Leyte.
The marketing agreement crafted during the DA-PRDP planning stated that A&M can potentially supply cassava granules to FMPC. Subsequently, as A&M reached FMPC’s proposed cassava volume, DA-PRDP intervenes to finalize the documents.
A visit by the Investment in Rural Enterprises and Agriculture and Fisheries Productivity (I-REAP) or Enterprise Component in FMPC on April 6-8 at Region-8 ensured that the marketing agreement will then be signed to proceed with the delivery of A&M’s produce.
The DA-PRDP inculcates the importance of forging a formal marketing agreement where both parties remain grounded and protected. This provides in-depth detail of the product’s volume, quality, and delivery frequency.
The marketing agreement guarantees A&M’s produce will be purchased and FMPC will get the required volume of cassava granules.
“Cassava is not only a staple food but a primary commodity. We in DA-PRDP are like supporting actors for the success of this project. With this, we make sure to establish a market for the produce of the A&M to make it profitable,” Lynn A. Pareñas, DA-Caraga PRDP I-REAP Component Head said.
Furthermore, the signed document is one way of educating the farmers to exercise their rights and authority especially when it comes to bulk orders.
“During investment forums, we bring in personnel from the industry itself including San Miguel Foods, Inc. (SMFI). Through this, they will have a picture of the coops’ needs. These forums built a close partnership with the SMFI which also allowed us to connect to FMPC, one of their cassava granules suppliers,” she added.
A&M cooperative agreed to supply 10 metric tons or 10,000 kilograms of cassava granules per month with a buying price of P11/kg to FMPC. This will then be delivered by FMPC to SMFI to be processed as feeds.
“I-REAP assures that cassava granules consolidation and marketing are viable considering the market. Even if the project reaches its term, the enterprise can still continue, and support from DA will always be there,” Pareñas guaranteed.
Moreover, I-REAP plans to organize a field visit for the staff of A&M to the facilities of FMC to expose them to the coop’s process and give them a hands-on experience of the machines used. Also, a prospect production training which will be funded by I-REAP in partnership with FMC will happen in Dinagat Islands for the cassava farmers of A&M.
“For now, as the project progress, we also continue the capability building, institutional development, and other related engagements with A&M,” Pareñas asserted.
The MOA that will be signed in May serves as the go signal for the maiden voyage of A&M’s high-quality cassava granules. This will be tentatively transported to Matalom Leyte, then directly delivered to SMFI BMEG Plant in Ormoc City. (Zenny G. Awing / DA-PRPD13)
