Provincial Commodity Investment Plan (PCIP)

PROVINCIAL COMMODITY INVESTMENT PLAN (PCIP)
PROVINCE OF CAMARINES NORTE
I. DEVELOPMENT BACKGROUND
The province of Camarines Norte is found in the Northwestern Coast of the
Bicol Peninsula, which form the Southeastern section of Luzon, the largest island in
the Philippine Archipelago.
One of the six provinces that make up Region V (Bicol), it is bounded in the
North by the Pacific Ocean, on the east by the Pacific Ocean and San Miguel Bay,
on the west by Lamon Bay, and on the south by the adjoining provinces of
Camarines Sur and Quezon.
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Camarines Norte has a total of 282 barangays and 12 municipalities divided
into two (2) districts: District 1 is composed of 5 municipalities namely: Capalonga,
Jose Panganiban, Labo, Paracaleand Sta. Elena; and District 2 is composed of 7
municipalities which are: Basud, Daet (the capital town), Mercedes, San Lorenzo
Ruiz, San Vicente, Talisay and Vinzons.
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The population of the province in CY 2010 accounted to 542,915, roughly
10% of Bicol population, and 0.59% of the country’s population of 92,337,852.
The province’s type of soil, climatic condition and topography is an ideal area
for agricultural development. It has a total land area of 232,007 hectares, 76% of
which or 177,705 hectares are suitable for agriculture, fishery and forest plantation.
Coconut is extensively grown in the province, along with pineapple and other high
value crops. Fishery and livestock production is also a promising industry in the
locality.
With agri-industrialization as its development thrust, the increasing
productivity through the provision of effective production and post-harvest
infrastructures and support facilities shall be pursued along with the adoption of
modern technologies as well as maximum and sustainable utilization of the
development opportunity areas. This is aimed at making Camarines Norte
self-sufficient in food and a net exporting economy and in the process, maximizes
opportunity for employment generation of its people.
There are however issues and challenges confronting the province’s overall
development particularly in agriculture and agribusiness to wit:
1. Lack of fund support from agencies and LGUs to develop the agri-industry
of the province;
2. High input cost;
3. Lack of access from production areas to marketing and processing
centers;
4. Weak farmer clusters/organizations;
5. Limited livelihood and employment opportunities;
6. Exposure and vulnerability to climate related risks and hazards;
7. Low market price;
8. Weak delivery of extension services;
9. Lack of production and post-harvest facilities.
II. DEVELOPMENT VISION AND FRAMEWORK OF THE PROVINCE
The province’s development vision states that “The province of Camarines
Norte is a richly endowed natural environment and has a vibrant economy serving as
a vital link between the growth corridors of Southern Tagalog and Bicol provinces
with empowered citizenry living in well-planned settlements, where the local
leadership is transparent and accountable and everyone adheres to the principles of
sustainable development.”
The vision has elements critical to socio-economic development to wit:
a) People as society which speaks of a constituency who are empowered;
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b) Sustainable economic development through rational utilization of richly
endowed natural resources;
c) Vibrant local economy as characterized by agro-industrial development
thru modernization of all sectors;
d) Well-planned built infrastructures for overall provincial development;
e) Governance by accountable and transparent leadership.
The achievement of food security and self-sufficiency in food for its people
and the production of commodities with comparative advantages that could boost
the province’s economy through net export thereby maximizing opportunity for
employment generation of its people is the major concern of this LGU.
With these, the following strategies will be adopted as the province’s
perceived way to attain its goals and objectives:
1. Provision of access from production areas to major markets and
processing centers, promotion of cost reducing technologies and provision
of support facilities and utilities;
2. Clustering of farmers for convergence in interventions, continuous
capability building and provision of credit access;
3. Upholding of good and honest governance and participatory planning;
4. Promotion of sustainable development.
Expected Outcomes / Results:
1.
Increased access of farmers to production and post-harvest technologies and infra
support;
2.
Increased income due to adoption of cost reducing technologies and value adding
activities;
3.
Well trained enhanced capability of farmers, agricultural extension workers, officers
and communities;
4.
Enhanced access to credit;
5.
Good, honest and transparent governance;
6.
Strong stakeholders participation in planning and implementation of projects and
activities;
7.
Adoption and implementation of environment friendly programs and technologies.
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III. PRIORITY COMMODITY CHAIN DEVELOPMENT
Based from the commodity prioritization for value chain analysis for the
Philippine Rural Development Program (PRDP), coconut ranked 1st followed by
pineapple and fishery, respectively.
Prioritization was based on several criteria such as:
1.
The level of suitability using standardization value from the Bureau of Soil
and Water Management (BSWM) where 9 is the highest and 0 for not
suitable;
2.
The number of growers/producers involved also showed that coconut got
the highest share of growers compared to all commodities that were
subjected for prioritization, thus, giving the highest percentage of impact
on the poor having the potential to raise income in the rural areas. This is
followed by pineapple and fishery, respectively;
3.
In terms of market potential, the existing supply gap of coconut can absorb
twice the potential or increased production compared with pineapple which
takes about 18 months before it can be harvested and fishery/marine
products which are highly perishable. The analysis of market potential
was based on market size, potential for growth, ease of entry and potential
for value adding.
Based from the commodity prioritization, coconut ranked 1st and geonets was
selected as its value added product.
A. Coconut Profile
The national production of coconut for 2012 reached less than 16 million
metric tons from around 3,573,806 hectares of area harvested.
Among the several producing areas in the country, Bicol region has the
largest area harvested to coconut of around 453,501 hectares or 12.7% of
total coconut hectarage in the country, Bicol is 4th in terms of number of
coconut bearing trees, after CALABARZON, Eastern Visayas and the Davao
Region. Bicol has more than 36.6 million coconut trees, accounting to 10.4%
of the total number of bearing trees in the Philippines.
Coconut is also extensively grown provincewide covering a total area of
100,085 hectares. The town of Labo ranked 1st in terms of area planted to
coconut with 32,857 hectares followed by Capalonga with 12,895 hectares and
trailed behind by Jose Panganiban, Basud and Mercedes with 10,467
hectares, 7,964 has. and 7,590 has., respectively (fig. 1). Bicol region
accounted 8% of Philippine production and 13% of Philippine hectarage. Of
these, 19% of Bicol production and hectarage came from Camarines Norte.
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Multi-cropping and diversified farming under coconut is being
practicedprovincewide and among these crops are pineapple and high value
commercial crops. These provide additional sources of income for the farming
families in the rural areas particularly in the coastal municipalities where large
number of coconut trees are found.
Fig. 1.eVSA Result, AREA PLANTED (ha.)
Province of Camarines Norte
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There are about 24,481 coconut farmers dependent on coconut for
livelihood provincewide, mostly located in the municipalities of Labo with 3,494
farmers; Paracale with 3,360 farmers followed by Basudwith 3,294; and Sta.
Elena with 2,931 farmers, respectively. The eVSA result showed that although
Paracale is not a municipality with large area planted to coconut, still it has
most number of farmers compared with other municipalities because the
average landholding is relatively small. The mapping of number of coconut
farmers is shown in fig. 2.
Figure 2.eVSA Result for NUMBER OF FARMERS
Province of Camarines Norte
As to number of coconut bearing trees, out of 8,670,817 coconut trees,
7,557,178 or 87% are nut bearing. The total production provincewide is posted
at about 239,506 metric tons representing 19% of the total Bicol production.
The five municipalities with highest production are Labo with 76,823 metric
tons, Capalonga with 30,149 metric tons, Jose Panganiban with 24,473 metric
tons, Basud and Mercedes with 18,620 and 17,746 metric tons respectively.
Daet has the least production of 4,414 metric tons (Figure 3).
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Figure 3.eVSA Results, COCONUT PRODUCTION (Metric Ton)
Province of Camarines Norte
The province has one (1) existing plant for oleo chemicals/fatty acid, the
Pan CenturySerfacpan Inc. and one (1) oil refinery being established at Sto.
Domingo, Vinzons. Coconut meat is the primary raw materials used by these
industries. Small processors are also available for virgin coco oil, coco sugar,
coco jam and vinegar. There are about three (3) small coco farmers
associations and a number of households involved in processing.
Several stakeholders are also involved in different coconut product lines
which include coconut farmers, seed growers, copra buyers, whole nut buyers,
traders, twiners and weavers. BACOPICO alone, the existing coco geonets
processor has 5 assemblers, 500 twiners and 30 weavers while there are 17
twiners in Sta. Elena. These include women, youth, inmates and students.
One income generation source from coconut is the conversion of coconut
husks (presently a waste product) into coco coir and coco geonets.
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Coco geonets production and coco coiris already an established business
in the province. However, there is only one (1) operational decorticator
operated by BACOPICO, with a daily capacity of 5,000 coconut husks and
which can only process 0.7% of available husk supply in the province. In this
regard, the province will focus its development on this commodity (coco
geonets) to address unemployment thereby improving the socio-economic
status as well as the protection and conservation of the environment thereby
increasing people’s awareness on disaster risk reduction and climate change
adaptation.
Among the many uses of geonets are erosion control, ground
improvements, slope stabilization, stream over banks stabilization, road edge
drains, etc.
Production process of coco geonets included coco husk gathering wherein
10,000 husks produces 1 MT of coir after decortication. This coir can produce
10,000 hanks during the twining process equivalent to 28 rolls x 50 sq.m.
geonets upon weaving.
Demand of DPWH for coconets in Bicol was about 78,836 metric tons in
CY 2013 and increased to 198,016 metric tons or almost 15% in CY 2014.
Most of the projects requiring geonetshave not yet started thus,it is seen as a
big opportunity for the industry.
The 2009 small area estimates of poverty incidence of families is higher in
the municipalities of Capalonga, San Lorenzo Ruiz,
Sta. Elena, and
Mercedes, followed by Vinzons, Basud, Labo, Jose Panganiban, Paracale San
Vicente, and Talisay with the Capital town of Daet having the least incidence
of poor families at 21% (Figure 4). With the provision of farm-to-market roads
and industry development, the number of poor will decrease, increased
income will be realized, unemployment will be addressed and increase in
human development index is expected.
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Figure 4.eVSA Result, POVERTY INCIDENCE
Province of Camarines
Coco coir and geonets production has been a source of income in coconut
communities in the province through the Basud Coconut and Pineapple
Cooperative (BACOPICO) as the present processor. Several stakeholders are
benefited from the industry primarily the coconut farmers and whole nut
buyers, husk suppliers, decorticators, twiners, weavers, traders, exporters
including those who are indirectly dependent from the industry like students,
out-of-school youths, women and others. Other farmers like the pineapple
growers and fishermen can likewise be benefitted through geonets production
while waiting for the harvesting season and lean months of fishing.
With this, the expansion of the project to other poverty stricken areas will
help uplift the socio-economic well-being of families. Twining and weaving will
utilize the idle time of different stakeholders and at the same time, earning
income for their families. The abundant supply of husks and availability of
existing processor and market is an opportunity for geonets production in the
province.
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Marketing outlets for geonets as well as coco peat (by product during
decortication) are Juboken in Albay and Peter Paul in Quezon. Domestically,
geonets are used as an erosion control and bio-engineering materials by the
DPWH and Local Government Units. Coco peats are utilized by some
enthusiasts as planting medium and some are used as organic fertilizers.
Figure 5.eVSA Result (Ranking)
Province of Camarines
Figure 5shows the rank of municipalities using five parameters with
equivalent weights such as VSA (0.05); poverty incidence (0.2); coconut
production in metric tons (0.199); area planted to coconut in hectares (0.092)
and number of farmers (0.009). While the municipality of Labo ranked 1st in the
expanded vulnerability and suitability assessment, its role in the provincial
development industrial center will further be enhanced by establishments of
industries related to coco-geonets and coconut by-products value adding thus,
benefitting its nearby municipalities to include Capalonga, Jose Panganiban,
Vinzons, San Vicente, Paracale and Sta. Elena. While BACOPICO is seen as
BIG BROTHER for coco-geonets processing, existing facilities will be
upgraded and access to major production areas of coco-geonets processing,
existing facilities should be upgraded and access to major production areas of
coconut, pineapple and fishery shall be provided.
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B. Investment Plan
There are 5 major players in the coco geonets value chain map to include
husk gatherers, decorticators, twiners, weavers and the BACOPICO who is the
overall consolidator of the product in the province at present. There are
existing 95 twiners and weavers, 85% of which are women. Juboken in Albay,
Philippine Peter Paul Corporation and DPWH serve as the present market for
coco geonets. Assemblers likewise buy the coco fibers and distribute to their
twiners and weavers. Aside from coconets, doormats and other products are
also produced and sold in the market.
In line with this, the Provincial Commodity Investment Plan (PCIP) was
prepared (Table 1) which identified the interventions within the various
segments of value chain and is of significant to the overall provincial
development and to the attainment of national and regional goals for
agriculture and fishery sector.
IV. The Provincial Commodity Investment Plan (PCIP) has been subjected to
Stakeholders Consultation participated in by LGUs, PPMIUs, National Government
Agencies and Small Coconut Farmers Association. After a fruitful deliberation, a
convergence meeting with Department of Science and Technology (DOST),
Department of Agrarian Reform (DAR), Philippine Coconut Authority (PCA),
Department of Public Works and Highways (DPWH), and Department of Trade and
Industry (DTI) was undertaken for strengthened linkages and identification of specific
interventions.
This is again presented to the Provincial Development Council (PDC) chaired by
the Provincial Governor, with 12 mayors as members, Non-Government
Organizations, District representatives and agency representatives for support and
endorsement.
Among the value chain segment and services, support services/logistics ranked
1 wherein Concreting of Pinagwarasan, Basud to Lanot in Mercedes Road is
prioritized among the several identified farm-to-market roads. Aside from coconut,
these municipalities (Basud& Mercedes) are also one of the largest production areas
for pineapple and the long stretch of coastal areas is one of the main source of
fishery and marine products of the province and region as well. The existing geonet
processing industry has been considered in the prioritization and selection of the
project because of the greater number of existing stakeholders in the various
segments of the value chain and the would be spill-over effect of development to the
adjacent municipalities and barangays. The combined number of coconut farmers of
Mercedes and Basud plus the number of pineapple and fishery farmers that will
benefit from the project is much more than the number of farmers from the
municipalities of Labo and Capalonga which ranked 1st and 2nd in the eVSA results.
In addition, the road project will provide transport accessibility during bad weather
because there is no other alternate route from Mercedes and Basud to urban and
processing center of the province.
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The provision of access from major production areas to processing centers will
be complemented with coco geonets and other coco by-products enterprise
development through clustering of municipalities and provision of business enabling
programs to include capability building and advocacy, strengthening of farmers
organization, provision of coco geonets and coco by-products processing plant,
production and marketing support, research and development, provision of credit
access, etc.
V. INSTITUTIONAL ARRANGEMENT
An Executive Order organizing the Provincial Project Management and
Implementing Unit (PPMIU) PPMIU has been approved, the overall coordinator of
which is the Provincial Planning and Development Coordinator (PPDC) who shall
lead the program coordination, supervision and advisory services. The I-Plan
component is handled by the PPDO while the Provincial Engineer’s Office shall take
the lead for all infrastructure projects under the I-BUILD Component including the
infra support services in the I-REAP Component in close coordination with the
Provincial Agriculturist Office. The Social and Environmental Safeguards (SES) will
be handled by the Provincial Environment and Natural Resources Officer (PENRO)
to avoid negative impacts and to address the current environmental issues and
concerns as well as to provide mitigating measures in the course of project
implementation. The Provincial Administrator heads, the I-SUPPORT Component
with the Finance Group and Bids and Awards Committee as members.
Monitoring and Evaluation will be carried out by the different departments with
representative from the Department of Agriculture (DA), Commission on Audit (COA)
and other concerned National Government Agencies.
A Provincial Project
Monitoring Committee (PPMC) has been created with Non-Government
Organization (NGO) as member and will also compose the monitoring team. This is
to provide transparency and accountability in the implementation of identified
development projects in the PCIP. A regular monitoring system shall be put in place
and feedback mechanism shall be encouraged. Geo-tagging will be a management
tool for monitoring of sub-projects and collaboration between and among the
national and local governments and private sector shall be promoted.
VI. LEGITIMIZATION AND PDC ENDORSEMENT
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