DAR grants Nabbotuan MPC Php257k for Muscovado sugar processing

     The Department of Agrarian Reform Provincial Office (DARPO) of Cagayan-Batanes led the ground breaking ceremony of the Nabbotuan Multi-Purpose Cooperative in barangay Nabbotuan, Solana, Cagayan wherein the later is a recipient of Two Hundred Fifty-Seven Thousand and Five Hundred pesos as funding for the construction/expansion of their Muscovado Sugar processing center under the DAR’s Village Level Processing Center and Enhancement Project (VLPCEP).

     The ceremony was also attended by the very supportive officials of the Local Government Unit of Solana headed by Mayor Jenalyn Carag. Barangay officials of Nabbotuan also warmly welcomed the project as an indication of increasing capacity of women and men to participate in, contribute to and benefit from growth processes in ways that recognise the value of their contributions, respect their dignity and making it possible to negotiate a fairer distribution of the benefits of growth vis-à-vis their local economy.

     Nabbotuan MPC is an agrarian reform organization (ARBO) within the FURABAN Agrarian Reform Community. The Agrarian Reform Community (ARC) Development Strategy was adopted in 1993 to focus on priority agrarian reform areas to maximize resource allocation, complementation, and mobilization for greater efficiency and impact taking into consideration the limited financial and material resources of the government.

      An ARC is a barangay or cluster of contiguous barangays within a municipality where majority of the CARP-covered lands have been awarded to a critical mass of Agrarian Reform Beneficiaries (ARBs).  The ARC strategy applies the integrated area development approach where the ARBs and their communities are the primary focal points of development interventions.

     Once completed, the processing center shall help increase the livelihood of the members of the cooperative.  They will process raw sugar into Muscovado sugar which commands a higher price due to its higher demand by reason of its health benefits.

     Muscovado sugar is the unrefined dark brown sugar that is more sticky and courser than the regular brown sugar. It is the instantaneous sugar created in crystallizing sugarcane juice. In contrast with other sugars, Muscovado sugar has a distinctive flavor and taste that retains the natural flavor and color of the sugarcane juice, as such it is also considered as the purest form of sugar. It also retains the natural nutrients such as calcium, chromium, cobalt, copper, magnesium, manganese, phosphorous, potassium, iron, zinc and other vitamins. It is also rich in phytonutrients, antioxidants, proteins, fiber, etc., with are usually destroyed by filtering, bleaching and heating during the production of the regular refined white sugar.

     The VLPCEP aims to develop market competitive Agrarian Reform Beneficiaries (ARBs) products and enhance enterprise and livelihood activities at the community level in selected agrarian reform areas through assistance in product value-adding, improvement of facilities, and assistance in documentation and Food and Drug Administration license application. The implementation of the project is part of the mandate of DAR to provide support services to ARCs.

     Under the Memorandum of Agreement (MOA) executed between the DAR and the ARBO, the members of the cooperative shall manage and maintain the processing center, keep and maintain the recording system for the activity, and shall ensure the continuous production of Muscovado sugar as an additional business enterprise of the cooperative.  

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Three Cagayan Valley towns into Sugarcane Block Farming

Planning workshop of DAR and ARB
coops for block sugar faming

The Sugarcane Block Farming project is currently being implemented by the Department of Agrarian Reform provincial office of Cagayan wherein small farms owned by agrarian reform beneficiaries (ARBs) in sugar-producing areas are being consolidated to increase the ARBs’ profitability through ‘block’ farming. Provincial Agrarian Reform Program Officer II (PARPO II) Virgilio M. Acasili said the implementation of the project is pursuant to the Memorandum of Agreement (MOA) signed between and among the Sugar Regulatory Administration (SRA), Department of Agriculture (DA) and the Department of Agrarian Reform (DAR). Under the MOA, the DAR will shoulder the cost of farm tractors and business development services. The DA will cover the development of irrigation facilities and the improvement of farm-to-mill roads while the SRA will shoulder the cost of agri-technology and overall management of the block farms.

At least two (2) municipalities in Cagayan province are preparing to engage in sugarcane block farming to increase profitability and  also a way of preparing our ARB-sugar farmers against the effects of competition resulting from the implementation of the free trade agreement within the ASEAN region by 2015,  when the tariffs on agricultural goods can be as low as five percent to even zero.

The demand for sugar is continuously rising due to the increasing requirements for production of bioethanol (from sugar) and in power cogeneration which uses sugarcane waste called bagasse. Presently, energy companies are allowed to import bioethanol to supply their needs as local production cannot meet the current demand. Bioethanol made from sugarcane consumes the least amount of energy and emits the least amount of greenhouse gas, which means it is one of the most earth-friendly power sources.

The local sugar industry’s biggest competition is the entry of cheaper sugar from Thailand and is considered as a real threat that can affect local production and pull down domestic prices to the prejudice of local farmers. Sugar from the Philippines is still being exported with the United States as its major market. According to the SRA, sugar exports will soon include India, Korea, Indonesia and the Middle East.

Sugarcane block farming will happen in the municipalities of Solana and Tuao, all in the south-western part of Cagayan province where large tracks of lands are planted to sugarcane that provide the raw materials for the Cagayan RobinaSugar Milling Company (CARSUMCO) in Sto. Domingo, Piat, Cagayan. Also included in the project is Cabagan town in Isabela province. 

Under the block farming system, small farms of agrarian reform beneficiaries with areas of less than 10 hectares will be consolidated and integrated into 30-50 hectares through various schemes such as contracting, joint venture, partnership and sharing.

The block farms will be managed as one farm so that activities in the small individual farms are synchronized to the plans of the whole block, Hence, resources including farm workers, equipment and financing, could be utilized more efficiently. Although the farms are operated as a block, the ARB remains as the absolute owner of their farm, they will not lose ownership of their land titles. The block farms will be managed by their farmers’ organizations or cooperatives who will be assisted by a farm manager hired and supervised by the SRA.

Block farming is the consolidation of small farms to help increase productivity and to widen the scale of sugar production. ARBs are encouraged to organize themselves into cooperatives to make their farm operations more cost-efficient which will result to lesser cost of production resulting to more profitable per unit area. It is a support services program intended for the Comprehensive Agrarian Reform Program (CARP) beneficiaries.

The government is targeting to have at least 100 sugarcane block farm sites by 2015. The average sugar cane yield per hectare is currently at 60 tons but this can be increased to 70-80 tons per hectare through farm mechanization and improved production process.

Under the block farming system, DAR provides all that the farmers will need such as farm inputs, new farm techniques and common service facilities that consists of a mechanized tractors and a hauling trucks, etc.  These inputs and farm equipment will  be provided as grants to the farmers’ cooperatives being the conduit between DAR, etc and the farmer-beneficiaries who are parties to the project.

           According to studies conducted by SRA, the program can help increase their sugar cane production from 99 to 147 bags of sugar per hectare, which could be translated to a possible increase in income of about P39, 000 for the farmer-beneficiaries. /cds