ANNEX B

PROFILE OF REGION 1 STRATEGIC COMMODITIES

Strategic Commodity 1. Milkfish Products Processed Foods Location (Existing/ Potential Investment Areas) Badoc, Ilocos Norte Production Area Fishpond Area: 5 hectares Production: 12 MT No. of Operators: 5 Fish cage Area: 9.54 hec. Production: 40.75 MT No. of Operators: 101 Fishpond Area: 270.35 hectares Production: 675.88MT No. of Operators: 917 Fish cage Area: 4.77 hec. Production: 5.67 MT No. of Operators: 53 Fishpond Area: 600.91 hectares Production: 2081.24 MT No. of Operators: 748 Fish cage Area: 7.76 hec. Production: 248.5 MT No. of Operators: 92 Benefits Cost of Investing A. Investment Cost: P 161,020.00 B. Production Cost: 160,000.00 C. Marketing Expenses: 24,922.00 Total: P 345,942.00 Support of Government Agencies, LGUs BFAR and other private sectors Technical assistance (technology) Product promotion through Aqua Trade Fair Market matching and linkages to credit institutions Assistance on the compliance to the National and International Rules and Regulations

One of the fishes best suited for culture in brackishwater ponds/cages and mariculture activities

Bangus Fillet

Milkfish production is regarded as the backbone of Philippine aquaculture It is largely produced in the Province of Pangasinan making Region 1 the number 1 milkfishproducing region entire the Philippines from 2006-2008

Narvacan, Ilocos Sur

Bang us nug g ets

Rosario and Sto. Tomas, La Union

Strategic Commodity

Products

Location (Existing/ Potential Investment Areas)

Production Area Fishpen Area (hectares)/No. of Units: 341.18 hec. Production: 3811.29 MT No. of Operators: 512 Fishpond Area: 11935.9 hectares Production: 23765.63 MT No. of Operators: 5403 Fish cage Area: 34.83 hec. Production: 36376.24 MT No. of Operators: 140 Fishpen Area (hectares)/No. of Units: 2582 Production: 29773.37MT No. of Operators: 2156

Benefits

Cost of Investing

Support of Government Agencies, LGUs

Sual, Pangasinan

2. Seaweeds

Carrageenan (Thickening and stabilizing agents)

Ilocos Norte

Pagudpud: 10 hectares Pasuquin: 10 hectares Currimao: 2 hectares Badoc: 50 hectares Cabugao: 100 hectares

One of the most important

Ilocos Sur

Serves as source of human food, raw materials for phycocolloid production such as carageenan, agar and utilized as fodder and fertilizer

A. Bill of Materials: B. Total Labor Cost: Total :

P 33,316.00 11,660.00 44,976.00

BFAR and other private sectors: Technical assistance (technology)

Product promotion through Aqua Trade

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Strategic Commodity components of marine ecosystem along with coral reefs

Products

Location (Existing/ Potential Investment Areas)

Production Area San Juan: 10 hectares Sta. Maria: 10 hectares San Esteban: 50 hectares Santiago: 50 hectares Balaoan: 30 hectares Anda: 50 hectares Alaminos City: 10 hectares Sual: 30 hectares Dasol: 480 hectares Infanta: 5003 hectares Agno: 44 hectares Burgos: 17 hectares Bani: 10 hectares San Fabian: 10 hectares

Benefits

Cost of Investing

Support of Government Agencies, LGUs Fair Market matching and linkages to credit institutions Assistance on the compliance to the National and International Rules and Regulations

La Union Pangasinan

For foods and beverages

Seaweeds farming has eventually became a source of livelihood of fishfarmers in Region 1 particularly in Pangasinan where production of seaweeds was found to be feasible all year round

Algin (Gelling agent, absorbs water quickly)

For pharmaceutical preparations

3. Bagoong

Fish Sauce

Lingayen, Pangasinan

Raw materials: Dilis, terong, bulilit,

Widely produced in the region for

Average Production Capacities/Firm:

BFAR and other private sectors

B-3

Strategic Commodity A by-product of fermented whole or ground fish, shrimp, fish roe

Products

Location (Existing/ Potential Investment Areas)

Production Area padas, salt

Benefits home consumption and export It is commercially produced in the Province of Pangasinan in bottles, sachets, etc.

Cost of Investing Fish paste: 1,000 boxes per month for big and small bottles Average Selling Price: Boneless bagoong (big) : P275/box (12 bottles per box) Boneless bagoong (small): P270/box (24 bottles per box) Patis (big): P265/box (12 bottles per box) Patis (small): P260/box (24 bottles per box)

Support of Government Agencies, LGUs Technical assistance (technology) Product promotion through Aqua Trade Fair Market matching and linkages to credit institutions Assistance on the compliance to the National and International Rules and Regulations

Source of raw materials: Malabon, Bicol, Mindoro, Lucena, Bataan, Pangasinan, Palawan, Leyte, Marinduque, Samar, Cavite Fish Paste Number of firm involved: 35 Average labor component: 16 persons Product Line: Bagoong (fish paste) Patis (fish sauce) Mode of Marketing Products: COD/ Consignment Packaging: Bottles, cans, baskets, pails, drums, sachets, banyera

4. Meat Processing

Bagnet

INDUSTRY KEY PLAYERS

QUALITY ASSURANCE

A. Investment Entry:

Technology Improvement,

B-4

Strategic Commodity Industry

Products

Location (Existing/ Potential Investment Areas) 1. Celas Meat Products Mangaldan, Pangasinan 2. EJs Meat Shop Vigan City, Ilocos Sur 3. Gonzales Longganisa Vigan City, Ilocos Sur 4. IC Famorca Meat Processing Vigan City, Ilocos Sur 5. Ayens Delicacies Vigan City, Ilocos Sur 6. Pascuas Longaniza San Nicolas, Ilocos Norte

Production Area

Benefits SYSTEM 1. BFAD Registered Establishments 2. HACCP Certified 3. Undergone ISTIV P& Q Standards 4. Packaging & Labeling Upgrading 5. Training on Good Manufacturing Practice (GMP) 6. Training on Standard Sanitation Operating Procedures (SSOP)

Cost of Investing - Investment in Packaging Plant - Commercial Livestock Production

Support of Government Agencies, LGUs Marketing Business Management, Financing & Credit Facilitation from the following government agencies: DOST DTI GFIs LGUs DA BFAD DOLE

Embutido

Longanisa

Tocino

Tapa

B-5

Strategic Commodity 5. Chichacorn Industry (Fried Corn Industry)

Products

Location (Existing/ Potential Investment Areas) Industry Key Players 1. Nana Rosas Cornick 2. Namnamas Cornick and Food Products 3. Lutong Paoay Chichacorn and Food Products 4. V.E.A.s Food Products 5. M.A. Cornick 6. Aling Presings Chichacorn 7. Lutong Ilocos Chichacorn 8. Victor Angels Cornick and Food Products 9. Ilocos Food Products

Production Area Ilocos Norte: Paoay, Batac, Bacarra, Dingras Ilocos Sur: Bantay, Candon La Union: Tubao, Agoo Production : 4,800 cavans per month (I Sur/I Norte) Existing Market: A. Domestic B. Export - Indirect exports to the USA; 1 firm indirectly exports to the Middle East intended for OFWs Employment/Total No. of Industry Workers : 100

Benefits Quality Assurance System A draft Philippine National Standards for Corn Snacks has been formulated. The PNS for Corn Snacks provides standards for fried corn. This shall also become the standard internationally. BFAD Registered Firms - 7

Cost of Investing Estimated Sales per Month : 4M/Association (9 key players) Approximate Asset Size per Firm: Php1.5M Potential Investment Entry: Technology and Packaging Materials DTI

Support of Government Agencies, LGUs

The OTOP of Paoay, Ilocos Norte and Model OTOP of the Province Livelihood Project of ARCs in Tubao, La Union

1. Marketing - Participation to trade fair/ exhibits specially to NTF and IFEX - Product packaging/ Labeling devt. - Market linkaging - Facilitation of BFAD and BAR Code Accreditation 2. Production - GMP Trainings - In-plant consultancy 3. Institutional Development - Conduct of regular meetings with the members of the organization - Conduct of Institutional/ Entrepreneurial development trainings 4. Financing - Fund sourcing/ facilitation DOST - Technical assistance in the

Micro Enterprises in Candon, Ilocos Sur & Agoo, La Union.

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Strategic Commodity

Products

Location (Existing/ Potential Investment Areas)

Production Area

Benefits

Cost of Investing

Support of Government Agencies, LGUs upgrading of facilities and processes, and improving the packaging and labeling of finished products DOST Regional initiatives to the tropical wines and distilled spirits industry in Region 1 Introduction of sugarcane planting materials for basi production Fabrication/provisi on of processing equipment Laboratory testing Isolation of the fermenting organism Culture of the fermenting organism Training on GMP and HACCP

6. Tropical Wines and Distilled Spirits

Ilocos Norte: - Cormel Foods, Laoag City

Cormel Foods: Sugarcane juice: 2,000 L Samak: 50 kg Duhat fruits: 7,000+ kg Ripe mango: 5,000 kg MMSU Batac City Sugarcane juice:4,800 L Samak: 2 kg Camanga MPC Badoc Glutinous rice: 720 kg Minimal yeast Duhat wine makers in IN Duhat fruits: 400 kg Yeast: 100 g Basi producers in Carasi Sugarcane juice: 31,200 L Samak: 400 kg Ilocos Food Products Sugarcane juice:

Deters food poisoning - Wine can help wipe out the bacteria that are responsible for food-related stomach problems. Protects against heart disease Red wine reduces the build up of fat cells in the arteries. May help prevent cancer The catechins in red wine have been proven effective in reducing cancer risks. May help treat anorexia Wine is helpful in

Sugarcane

Bignay

Country Wines (Basi, Duhat, Nipa, Bignay, Tamarind) Tapuey/Tuba

Duhat

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Strategic Commodity Rice

Products

Location (Existing/ Potential Investment Areas) Ilocos Sur: - Ilocos Food Products, Bantay - Ilocos Sur Developers Cooperative, Lidlidda

Production Area 36,000 L Ilocos Upland Developers Coop Glutinous rice (ballatinaw): 2,000 kg Union Agridyne Products Sugarcane juice: 20,000 L A.S. Food Products Glutinous rice: 100 kg Naguilian Basi Processing Center Sugarcane juice: 30,000 L Malimpin MPC Duhat juice: 3,500 L Bignay juice: 175 L Laguit-Padilla ARC Duhat juice: 375 L Capulaan ARC Duhat juice: 225 L

Benefits treating anorexia which is characterized by loss of appetite Alcohol in concentrated form in grape wine improves appetite by prompting flow of saliva and gastric secretions Reduces anxiety and tension Wine is a mild natural tranquilizer.

Cost of Investing

Support of Government Agencies, LGUs

The Ilocos Region produces a variety of local wines, the most popular among them is the Basi. Evolution of other fruit wines: duhat wine, bignay/ bugnay wine, the ethnic rice wine or more popularly known as tapuy of the highlands, mango wine, tamarind wine, pineapple wine, and many others

La Union: - A.S. Food Products, San Gabriel - Union Agridyne Products, Bacnotan Pangasinan: - Malimpin MultiPurpose Coop, Dasol

B-8

Strategic Commodity 7. Yam (Ube)

Products

Location (Existing/ Potential Investment Areas) Bacnotan, La Union

Production Area

Benefits Nutritious/healthy food, rich in Calcium and Phosporous micronutrients Contains cortisone (suppresses the immune system, reduces inflammation); hydrocortisone/co rtisol (increase blood sugar and aid in fat, protein and carbohydrate metabolism); diosgenin ( used for the commercial synthesis of steroid products); and Anthocyanin (also act as powerful antioxidants) Solve malnutrition problems

Cost of Investing A. Labor Input: P 48,000.00 B. Input Materials: 188,080.00 C. Contingency: 11,804.20 Total Expenses: P 247,884.20 Yield : (10% mortality allowance) 9,000 plants x 2.43 kg/plant (average) - 21,870 kg x P20.00 kg D. Income: E. Less Input: F. Net Income: P 437,400.00 247,884.20 P 189,515.80

A substitute and staple crop food. It is a valuable crop for the food processing industries, locally based confectionaries to export market As a crop, it is easy to grow and cultivate For the farmer, it is a year round crop with March as the end of the harvest period and at the same time the start of the planting season. Ube Food Products

ROI = 43%

Support of Government Agencies, LGUs Linkages with local processors/ buyers of ube produce Support systems contracted by the LGU/partneragencies (NEDA, DOST, DA,DTI,MAFC,PAFC) Farm to market roads Ube Growers association in La Union Conduct of trainings/Ube schools in La Union and neighboring Regions Training s on ube sett, tuber, ube powder and processing and production. Construction of ube sett nursery Ube powder machines /powder production Processing center cum market outlet

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Strategic Commodity 8. Honey

Products La Union Honey

Location (Existing/ Potential Investment Areas) Bacnotan, La Union

Production Area

Benefits Nutritional Facts: Amount per serving: 19 grams (1 tbsp) Colonies: 60 Daily values : * Total fat: 0% Sodium: 0% Total Carbohydrate 14g: 5% Sugar : 13g Protein: 0g Quality Assurance System and or Certifications DOST Analysis Bar Code: 4806511270057

Cost of Investing Employment: (50 colonies/one full time and 5 part time) Market Share of Region I : Competitiveness Status : Low Honey MC - Semi-Aridity Investment Entry : Return On Investment Ave. ROI for the first 5 years for 2 colonies: 19.40% ROI for the succeeding 5 years for 2 colonies: 244% Incentive Packages : Local: Good substitute for Tobacco industry National: Health benefits

Support of Government Agencies, LGUs Supported by line agencies, LGUs and beekeepers association/ cooperatives and DOLE, DOST, DTI and DA. Infrastructure and Utilities: DMMMSU facilities and La Union Honey Processing Center Credit : Assistance from DOST DOLE DENR DAR NEDA RO-1 Marketing: Presence of the La Union Honey Processing Center Technological: Presence of NARTDI

9. Mango Dried mangoes Mango puree Mango juice/ nectar Mango concentrates Mango halves Mango jam/ preserves

Nutritional Facts: Contains large amount of tryptophan Rich in pre-biotic dietary fibers, minerals, vitamins & polyphenolic

Computations as of 2007 A. Cash Cost: P 30,933.00 B. Non-cash Cost: 3,955.00 C. Imputed Cost: 17,070.00 All Costs: P 51,958.00 D. Gross Returns: P 122,020.00 E. Returns above Cash and Non Cash Costs: 87,132.00

Government Support: Provision of planting materials in the expansion/ calamity areas Maintenance/ upgrading of existing nurseries and scion grooves

B-10

Strategic Commodity

Products Chutney Frozen mangoes Mango glaze Mango in brine

Location (Existing/ Potential Investment Areas)

Production Area

Benefits flavonoids antioxidant compounds Protect against colon, breast, lekema & prostate cancers Contains vitamin A (betacarotene) & vit. B-6 Source of vitamin A & flavonoids Has potassium that helps regulate heart rate & body pressure

Cost of Investing F. Net Profit Cost Ratio: 1.35

The country's national fruit is the third most important fruit crop of the country based on export volume and value next to banana and pineapple. Pangasinan has a 70% - share of the total production in Region I.

Support of Government Agencies, LGUs Provision of production inputs (chemicals for flower induction) Provision of farm equipment (power sprayer) Technology transfer Support to market/ export initiatives Support to research and development Estab. of common service facilities in identified cluster production areas Provision for credit/ crop insurance Strengthening of the regulatory services e.g. certification system, pest risk analysis, pesticide reside analysis, food safety GAP promotion & certification

10. Onion

Ilocos Norte (shallots)

Batac, Vintar, Pinili, Burgos, Laoag, Badoc, Bacarra, Pasuquin Sta. Catalina, Sinait, San Juan, Caoayan, Bantay,

Processed Shallots Dried Shallot Chips

Ilocos Sur (shallots)

Nutritional facts Nutrients: calcium, phosphorous and potassium Medicinal uses/ healing powers contains antibiotic

Shallot/Native Onion, 2nd Quarter 2011 A. Total Prod Costs : w/o intervention: P 96,906.00 w/ intervention: 89,357.00 B. Net Income (P) w/out intervention: 315,594.00

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Strategic Commodity

Products

Location (Existing/ Potential Investment Areas)

Production Area San Vicente, Narvacan

Benefits & physiologically active compounds that lower blood pressure, ease pulmonary conditions and relieve/prevent convulsions; therapeutic and healing properties, effective aphrodisiac Uses vegetable and food flavoring can be eaten raw or cooked with other dishes

Cost of Investing w/ intervention: ROI (%) w/o intervention: w/ intervention: 460,643.00 325.67 515.51

Support of Government Agencies, LGUs

Pangasinan (Red Creole) Shallot powder

Bayambang, Bautista, San Quintin, Alcala Bayambang, Bautista, Alcala

Pangasinan (Yellow Granex)

RED CREOLE-ONION, 2nd Quarter 2011 A. Total Prod Costs w/o intervention: P 94,065.00 w/ intervention: 90,420.00 B. Net Income (P) w/o intervention: w/ intervention: ROI (%) w/o intervention: w/ intervention:

One of the most important seasonings in the world.

115,935.00 224,580.00 123.25 248.38

Pickled pink shallot

Cocktail shallot 11. Coconut Oil Processed products Nutritional Facts: Aside from the instant energy that it provides to the human body, it also has some medicinal properties. It was found out that the medium chain (C8 C12) fats in coconut Production of Virgin Coconut Oil & Coconut Flour (High-Protein) Fresh Dry Process (5,000NPD) A. Fixed Capital: Total P5,725,670.00 B. Annual Sales Revenue: P13,955,250.00 C.Annual Cost: 8,533,587.00 D. Profit Before Tax: P 5,421,663.00 PCA

Is one of the most well-

B-12

Strategic Commodity known and utilized product derived from the mature coconut meat or kernel.

Products

Location (Existing/ Potential Investment Areas)

Production Area

Benefits oil is similar to the fats in mothers milk that gives babies immunity from diseases and have similar effects.

Cost of Investing E. Return on Investment: 95% F. Payback Period: 1 year and 17 mos. Production of Virgin Coconut Oil & Coconut Flour (High-Fiber) From Residue (500 kg Per Day) A. Total Project Cost P 749,286.00 B. Annual Sales Revenue: 465,360.00 C. Annual Cost: 183,148.60 D.Profit Before Tax: 282,211.00 E. Return on Investment : 38% F. Payback Period: 2 yrs. & 7 mos. 20-Cow Dairy Buffalo Module Initial Capital: Php 1,335,091.00 Net Present Value (based on a 10year cash flow projection at 19% discount rate): 279,850.00 Internal Rate of Return (based on a 10-year cash flow projection): 23% Payback period: 3.8 years

Support of Government Agencies, LGUs

Coconut candy (bucayo) By using the carabao as a medium of development, the recipient farmer will not feel foreign to it as the animal is indigenous and is traditionally part of the real farming system. It has a lot to offer in terms of business opportunities . . . . As source of

12. Carabao

Dairy products:

CARABAO INVENTORY Ilocos Region, April 2010 (Source: BAS) Ilocos Norte Total: 24,285

PHILIPPINE CARABAO CENTER (PCC) Carabao-based Enterprise Devt or CBED It involves the establishment of a carabao production system that emphasizes entrepreneurship above that of subsistence system among millions of small-scale farmers

It is one of the most important animals in the country especially in agriculture.

Female Breeder: 8,990 No. of Raisers: 18,383 Ilocos Sur Total: 16,163 Dairy Products Female Breeder: 5,389 No. of Raisers:

One-dairy cow operation Total cost of production: P 112.75

B-13

Strategic Commodity

Products

Location (Existing/ Potential Investment Areas)

Production Area 11,631

Benefits draft As source of milk As source of meat As source of hide and valuable ornaments As tourist attraction For organic agriculture

Cost of Investing Income per day (180-250) Unit Cost: P45.00-50.00/L of milk Total: p67.25 137.25 Price per kg milk = Php45.00 to Php50.00 Income per day = Php 180 to 250 Income per lactation = Php 54,000.00 to Php75,000.00

Support of Government Agencies, LGUs

Meat products La Union Total: 27,358 Female Breeder: 12,250 No. of Raisers: 15,575

MILK PRODUCTION, Ilocos Region (status as of June 2011 Farm/Coop Leather products from carabaos hide PCC at MMSU Total: 45 Female Breeder: 35 Lactating Cows: 10 Milk Prod. (kg/day): 50 Timpuyog (Marcos) Total: 13 Female Breeder: 10 Lactating Cows: Milk Prod. (kg/day): Vigan Dairy Farmers Total: 30 Bolo handle out of carabaos horn Female Breeder: 20

B-14

Strategic Commodity

Products

Location (Existing/ Potential Investment Areas)

Production Area Lactating Cows: 2 Milk Prod. (kg/day): 4 San Fernando Dairy Total: Female Breeder: Lactating Cows: 4 Milk Prod. (kg/day): 7 Juan Luna Farm Total: Female Breeder: 15 Lactating Cows: 8 Milk Prod. (kg/day): 32 Rosario Dairy Coop Total: Female Breeder: Lactating Cows: 6 Milk Prod. (kg/day): 13 Bantog SNMPC (Asingan) Total: Female Breeder: 77 Lactating Cows: 32 Milk Prod. (kg/day): 43 Tulong MPC

Benefits

Cost of Investing

Support of Government Agencies, LGUs

B-15

Strategic Commodity

Products

Location (Existing/ Potential Investment Areas)

Production Area Total: Female Breeder: 42 Lactating Cows: 8 Milk Prod. (kg/day): 8

Benefits

Cost of Investing

Support of Government Agencies, LGUs

13. Hand Loom Industry

Model OTOP of Ilocos Sur Livelihood activities in Paoay & Sarrat Ilocos Norte and in Bangar, La Union As a traditional and homebased industry, Abel Iloco is making a good impression in the market because of the good quality and designs that are distinct Blankets, placemats, table runners, table napkins, pillow cases, clothing materials, stola, hand towels, mosquito nets, table cloth, shawls

Industry Groups Naguilian Original Loomweavers Assn. Bulag Original Loomweavers Assn. Camanggaan Loomweavers Assn. Sabangan Original Loomweavers Assn Nagbacalan Loomweavers Assn. Sarrat Loomweavers Assn.

No. of Registered SMEs: 100 Ilocos Norte Sarrat, Paoay Ilocos Sur Caoayan, Santiago, Santa, Bantay, Vigan La Union - Bangar

The loomweaving industry utilizes the skill and inherent artistry and talent of the weavers. It provides a stable source of income to people involved in the industry.

Existing Market - Metro Manila, Baguio City, Ilocos Region, Region II Estimated Capitalization per Firm : Php100,000.00

DTI Conducted / facilitated the following upgrading skills: Seminars on ISO 9001:2000 version Skills training on jack type loomweaving operation Skills training on Dobby Loomweaving Techniques Seminars on Dyeing techniques Seminar on Advanced Weaving

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Strategic Commodity from other loomwoven products in the country. 14. Goat Raising

Products Major RM Used/Source: yarn from Manila

Location (Existing/ Potential Investment Areas)

Production Area

Benefits

Cost of Investing

Support of Government Agencies, LGUs

Product: Goat Meat

Commercial Goat Population By Provinces, Region I Ilocos Norte 2010: 839 2011: 1120

Requires less investment cost & local feed resources Considered as the mobile bank for small hold farmers Potential source of sustained income to rural enterprises

Cost and Return Analysis 0f 20 doe level breeder production For 2 years operation: Total net income: Php 206,165.00 (using purebreed buck and F2 upgraded does) ROI (52.3 %) Allowing farm family to have an additional monthly income of an average of Php 8,590.20 (disposable breeder stocks 20 hd buck and 10 hd breeder doe at 20kg and 18 kg/hd respectively). Cost and Return Analysis 0f 10 doe level slaughter goat production For 2 years operation: Total net income: Php 46,900.00 (using triple cross bloodlines buck) ROI (54.29 %) An additional monthly income of Php 1,954/mo of a smallhold farm family (disposal of 8 grower buck and 10 grower does @ 25 kg and 20 kg

DA Increase goat and sheep meat production Conduct of Farmer Livestock School on Integrated Goat Management (continuing) Breeder Loan Program, Artificial Insemination and AO9 Establishment of Multiplier Farm Strengthening of Nucleus Farm Dairy Goat Development Program USPL 480 Regional Animal Disease Diagnostic Laboratory (RADDL) Regular Monitoring and Diagnostic Services/Surveillanc e

Goat raising serves as another source to augment farmers income

Ilocos Sur: 2010: 1263 2011: 2407 La Union 2010: 250 2011: 159 Pangasinan 2010: 2387 2011: 2834

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Strategic Commodity

Products

Location (Existing/ Potential Investment Areas)

Production Area

Benefits

Cost of Investing respectively )

Support of Government Agencies, LGUs

15. Sericulture processing

Made-up Goods Manufacturing

Bacnotan, La Union

Silkworm

Primarily being done by individual farmers or by small farmers groups under the supervision and support of government agencies like FIDA, PTRI, SRDI and an NGO, OISCA. The last count in 2008, about 268 farmers in Luzon, Visayas and Mindanao are engaged in this endeavor.

short gestation period quick recycling of resources

Number of silkworm rearing/annum: 5 rearings Number of boxes required: 12.5 boxes Mulberry Establishment & Maintenance Expenditures: P 66,304.00 Silkworm Rearing Shed Materials 11,851.65 Silkworm Rearing Expenses 22,787.00

DMMMSU-SRDI Government Support: Technology generation and transfer Maintenance of mulberry farms and nurseries and distribution system of improved mulberry varieties Breeding, pureline maintenance, egg production and distribution of silkworm to the farmers for further rearing to produce silk cocoons.

suits very well to all types of farmers and exceptionally for marginal and small land holders offers rich opportunities for enhancement of income and creates own family employment round the year.

Raw silk Sericulture emerged as an important economic activity. It is an ecofriendly sustainable economic activity, the cultivation of mulberry helps in soil and water conservation.

INCOME 1. Cocoon harvested/annum (kg.) 2. Total sales (PhP) 4. Annual Expenditures (PhP) 3. Return (@ PhP 150/kg)

312.5

46,875.00 Technical assistance and guidance are provided to the 12,325.73 sericulturists/ entrepreneurs, 28.73 besides undertaking training program 4. ROI (%) 33.05 for their skill upgrading. 5. Payback Period ( years) 3.34 Net Profit Assistance in marketing Subsidy 20,486.77 on supply of vital inputs like mulberry

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Strategic Commodity

Products

Location (Existing/ Potential Investment Areas)

Production Area

Benefits

Cost of Investing

Support of Government Agencies, LGUs saplings, silkworms and disinfecting materials MMSU

16. Bamboo

e-kawayan products

Ilocos Norte

Furniture Food and Beverage A plant that start as a shoot and grow into a pole. Starting from shoot stage it starts to repay and as it bows gives more than 1,500 uses Bio-energy Source

Furniture and handicraft Protection: Housing environmental: soil erosion control Food : bamboo shoot and vinegar Aesthetic Purposes: landscaping, urban forestry Health/medicine : bamboo distillate Clothing: bamboo fiber Fuel: bamboo charcoal/ briquette

E-kawayan Initial investment Payback period Profitability index P 1,500,000 2.45 years 2.98

Bio-char

Biochar's high carbon content and porous composition helps soil to retain

Cost Categories/ Bamboo Biochar at P9/kg Sales: P196,992.00

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Strategic Commodity

Products

Location (Existing/ Potential Investment Areas)

Production Area

Benefits water, nutrients, protect soil microbes and, ultimately, increase crop yields while growing healthy plants more resistant to disease while sequestering CO2 and stabilizing that rich carbon in the soil.

Cost of Investing Total Production Cost : 110,200.32 Net Income: 86,791.68 Net Profit Ratio (%): 44.06 Payback Period (Year): 0.69

Support of Government Agencies, LGUs

Biochar is a highly stable carbon compound created when biomass is heated through pyrolysis process, basically under limited or low oxygen condition. Commercial Bamboo Farming Widely distributed in the Philippines to include bamboo rich provinces of La Union, Pangasinan, Ilocos Norte, Ilocos Sur and Abra in Northern Luzon;

Harvesting and processing is done traditionally which does not require highly skilled labour and can be done by rural communities.

Bamboo, usually called the poor mans lumber but now considered Green Gold by many since: it is one of best substitute for wood as raw material for a lot of products , is effective in controlling erosion and landslides, and serves as carbon sink, keeps twice as much water in watersheds compared to other types of

B-20

Strategic Commodity

Products

Location (Existing/ Potential Investment Areas)

Production Area

Benefits vegetative cover , fast growing and easy to establish, does not require replanting when harvested or toppled down by strong winds, and a good cash crop and livelihood for the countryside and a potential dollar earner

Cost of Investing

Support of Government Agencies, LGUs

17. Sweet Sorghum

Products: Food, Feed, Fodder and Fuel

Batac, Ilocos Norte

Crop cycle (DAP): 100-110 (seed crop) 85-95 (ratoon) Yield (t/ha): 50-60 (seed crop) in 100-110 days

Sweet Sorghum is the only crop that provides at the same time: Grains for food, beverage and feeds, Juice for beverage, syrup and jaggery Stalks for fodder and biomass All of it can be converted to bioethanol either thru first generation or second generation (cellulosic) processes.

Total Cost of production + Cost of capital: P55,590.13 Net Income: 73,409.87 Rate of Return (Peso gain per Peso invested) : 1.36

MMSU

Sweet Sorghum is a drought tolerant crop. Can be planted after rice in rain-fed and drought prone areas.

45-65 (ratoon) in 85-95 days or a total of 95-125 in 185-205 days Sugar content: 15-23% Fertilizer requirement: 80-30-30

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Strategic Commodity

Products

Location (Existing/ Potential Investment Areas)

Production Area Bagasse Availability: 25% on stalk per crop (4 crops are possible per planting) These can be used as silage

Benefits

Cost of Investing

Support of Government Agencies, LGUs

18. Tiger Grass

Soft broom Tiger grass, locally known as buyboy in Ilocano and tambo in Tagalog. It is a viable source of livelihood for upland communities. This plant can be a main crop or interspersed with fruit trees or other

In La Union alone, there are five municipalities that produces tiger grass. The municipality of Bagulin is the highest producer of brooms with an estimated monthly production of 12,000 pieces.

Tiger grass serves as effective hedgerows for soil and water conservation Leaves serve as good forage for ruminants

An initial investment of P25,165 will generate a net return of P46,323 for the 2nd year and increases yearly until the 6th year.

Coordinate/tie-up with DOST re: Small Enterprise Technology Upgrading Program (SET-UP). Conduct R&D on product design, varietal development of tiger grass, improved shelflife/quality of softbroom.(Small and Medium Enterprise Groups) Technical assistance from the DENR Financing can be tapped from the Department of Trade and Land Bank of the Philippines

B-22

Strategic Commodity perennial crops. Identified as the One-Town-One Product of Bagulin, La Union 19. Cotton

Products

Location (Existing/ Potential Investment Areas)

Production Area

Benefits

Cost of Investing

Support of Government Agencies, LGUs

Used in Textile Mills

Ginneries San Juan, Ilocos Sur (CODA): 90 saw gin, 872 kg/unit/hr; 218 kg/bale San Fabian, Pangasinan (Pvt): 28 saw gin, 2180 kg/unit/hr; 218 kg/bale Polomolok, South Cotabato (Cotabato Cotton Corp.): 158 saw gin, 2616kg/unit/hr; 218 kg/bale Primarily grown in 27 provinces, nationwide Total Registered Farmers: 65,000 While it is pinpointed as cancer causing, it is considered by many as panacea for many ailments. It may yet be the plant of manifold uses as research continues to

Cost and Return Analysis Yield,kg/ha: 2000kg Price per kg: 33.00 Gross Income: 66,000 Total Prod. Cost: 41,532 Total Cash Cost: 30,132 Net Farm Income: 24,468 Net Cash Income: 35,868 ROI (NFI): 58.91

CODA DA BPI, DA-BPO DOST-BC/NCBP BCP Primatex MinCot GFIs

It contributes to regional economy and an import substitute a potential export.

20. Tobacco

Tobacco is an agricultural product processed from

Cigar

Registered Area: abt. 42,000 hectares No. of Farmers and

Cost and Return Analysis for one (1) Tobacco Farmers hectare production and Farming Communities, for Virginia Neutral the production of Yield, kg/ha: 2,000 leaf Gross Sales per ha: 143,900 Trading Centers, Price/kg: 71.95 Redrying Plants on Cost of prod./ha: 93,350 the production, Net Income: 50,550 trading & redrying/ ROI (%): 54.15 preliminary

B-23

Strategic Commodity the leaves of plants in the genus Nicotiana, which is composed of more than 70 species.

Products

Location (Existing/ Potential Investment Areas)

Production Area Area Actually Planted vary from year to year For 2010 - 50,278 planted in 33,768 hectares

Benefits discover industrial and pharmaceutical products from the leaves as well as from its byproducts.

Cost of Investing

Cigarette

Virginia Improved Yield, kg/ha: 2,400 Gross Sales per ha: 182,020 Price/kg: 75.84 Cost of prod./ha: 111,637.82 Net Income: 70,382.18 ROI (%): 63.05 Burley Neutral Yield, kg/ha: 1,800 Gross Sales per ha: 106,244 Price/kg: 59.02 Cost of prod./ha: 65,254 Net Income: 40,990 ROI (%): 62.82

Tobacco Extract

Tobacco Industry is one of the strongest pillars of the countrys economy and the lifeblood of the North. Tobacco Dust Other Products Cheroots, Chewing, Snuff /sniffing and dipping Reconstituted tobacco; refuse, scraps, clippings, cuttings, stems and sweepings of tobacco Tobacco dust for

Burley Improved Yield, kg/ha: 2,100 Gross Sales per ha: 138,450 Price/kg: 65.93 Cost of prod./ha: 83,250 Net Income: 55,200 ROI (%): 66.31

Support of Government Agencies, LGUs processing of leaf Tobacco Manufacturers, e.g. Philip Morris, etc. on the manufacture, distribution and sale of tobacco products (cigars, cigarettes) Wholesale Tobacco Dealers and Exporters/Importers on the exportation and importation of tobacco leaf and manufactured products GFIs- for the provision of credit facility for the farmers LGUs - on the provision of credit/production assistance NTA on the overall administration of development production/extensio n/regulatory services

B-24

Strategic Commodity

Products as molluscicide cum fertilizer for fishpond application and paddy rice Tobacco extracts as pesticide for mangos, vegetables and ornamentals Tobacco virgin pulp for various papers; Tobacco handmade paper and novelty items Ethanol Pharmaceutical and veterinary products

Location (Existing/ Potential Investment Areas)

Production Area

Benefits

Cost of Investing

Support of Government Agencies, LGUs

B-25