OE-NADA of the proposed ARCCESS sub-project: ginger production and processing in Tanay Rizal [Philippines] (final report)

Date

11-2014

Abstract

The proposed sub-project under the Agrarian Reform Community Connectivity and Economic Supportive Services (ARCCESS) of the Department of Agrarian Reform (DAR)is the 'Ginger Production and Processing' by the Sampaloc ARB Multipurpose Cooperative (SARBMPC)in Tanay, Rizal. The sub-project aims to develop 50 hectares of agribusiness lands planted to ginger mainly to ensure supply of raw materials for the ginger processing enterprise (salabat powder or ginger powder) of the cooperative. Specially, it aims to: 1)initially establish a 0.1000 hectare demo farm that will serve as a show window for ginger planters; 2)generate additional income of Php158,510 per hectare of ginger production starting 2015; 3)establish in a business unit by 2014; 4)develop additional two product lines (dehydrated ginger and ginger candy); and 5)ensure at least three steady markets for processed ginger products. The sub-project basically has two components: 1)ginger production and 2)ginger processing and marketing. The production component will involve development of additional ginger farm lands by initially establishing demo farms then upscaling the production to cover up to 50 hectares. The requested farm machineries will be used for production of (as applicable in certain areas) and also for transporting harvested ginger. The processing and marketing component involves salabat powder production, product development and innovations, and forging of partnerships and marketing agreements. Both members and non-members are expected to be tapped in the endeavor. The Organization and Enterprise Needs Assessment and Design (OE-NADA) was conducted to determine the relevance, feasibility and acceptability of the proposed sub-project. A focus group discussion with members and non-members at the ARBO was undertaken to obtain primary information about their current state of affairs and the details behind the proposal. Secondary data were obtained from the ARBO and DARPO to supplement the data from FGD. Based on the actual experience of the SARBMPC, the ginger processing enterprise is a profitable venture but the shortage in supply of raw ginger hinders maximization of potential income. The supply of ginger from the local market is insufficient to satisfy the demand for the finished product. Because of this, ensuring stable supply of raw materials is critical in sustaining the operation of the ginger processing business. To ensure supply of raw materials, the proposed sub-project entails that the ARBO will go into ginger production by engaging more farmers to plant the crop, and encouraging them by ensuring the market for their producer. The production area is supposed to cover 50 hectares. Market agreements will include price arrangements that will be both beneficial to the farmers and the ARBO. The ginger processing activity will likewise be improved under the sub-project through product development. Two additional product lines are planned-both ginger-based. The existing market for the ginger powder is still viable while the proposed additional products need creation of a new market as new products do. Marketing through the members of the Cooperative is a possible strategy and can encourage more active participation. Given the potential of the ginger processing to increase income of the ARBO and its members, it is recommended that the proposed project be approved. However, instead of the Cooperative going directly into ginger production, given land tenure issues and ow member participation, it is better for the Cooperative to just tie-up with the ASSAFTCON FTI, an existing Farmer's Association in the area whose members are already producing ginger. Expanding current production of ginger powder is expected to alleviate the current financial problems of the ARBO given its profitability in the past two years. However, a business development service provider is necessary to assist the ARBO in creating a more robust business plan. Moreover, agricultural extension services also have to be extended as mentioned by farmers in the FGD.

Language

English

Document Type

Article

Pages /Collation

31 leaves

En – AGROVOC descriptors

GINGER; PLANT PRODUCTION; PLANT PRODUCTS; FOOD PROCESSING; FOOD PRODUCTION; MULTIPURPOSE COOPERATIVES; EXTENSION ACTIVITIES; PHILIPPINES

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