Republic of the Philippines

Department of Agriculture
PHILIPPINE RURAL DEVELOPMENT PROJECT
National Project Coordination Office
4th Floor, DA Building, Elliptical Road, Diliman

Quezon City 1100, Philippines

SUB-PROJECT TITLE : ENHANCEMENT CONSOLIDATION AND MARKETING OF FRESH LACATAN BANANA

LOCATION : Brgy. Mua-an, Kidapawan

PROPONENT GROUP : Mua-an Farmers Producers Cooperative (MFPC)

TOTAL AMOUNT :
 Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
I-PLAN  The commodity has VCA and is included
in the PCIP of North Cotabato
 Discussion in the section of “Role of the
enterprise in the commodity value chain
upgrading” (page 3) is too lengthy but
missed out on the essential points
 No explanation on eVSA ranking of
Kidapawan City
 Focus the discussion on 1) what segments of the value
chain does the enterprise seek to address or improve,
and 2) the strategies to attain the upgrading of banana’s
value chain

 A more elaborate discussion on “Role of

the enterprise in the commodity value
chain upgrading” (page 17) needs
improvement
 Clarification on facilities proposed to be
purchased/established: there is a
mention of storage facility with
provision for sorting and grading
(page 17)
 Objectives section has missing
figures/values
 Briefly explain the significance of eVSA ranking in the
selection of Kidapawan City where the enterprise is
situated. Suggestion:
- Kidapawan City ranks first among 18 towns of North
Cotabato in terms of eVSA with an index of 0.76234. This
therefore indicates the strategic location of the enterprise.

 Discuss the constraints & opportunities stated in the

VCA. These provide the backdrop for the proposed
enterprise. Also include the prioritization of VCA
segments (as stated in PCIP) that are addressed by the
enterprise
 This part may have been inadvertently included. As such,
it may be deleted
 Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)

 Pls updated/provide missing info

I-BUILD Not applicable

I-REAP Minor
Executive Summary. There isno In preparing the Executive Summary, kindly have a
executive summary yet. brief discussion (maximum of two pages) on what the
enterprise is all about. Specifically, information on the
following:
(a) PG – existing business
(b) PRDP interventions and constraints and/or
opportunities being addressed or taken
advantage
(c) Market Plan – Product(s), Pricing Scheme,
Target buyers
(d) Operational Plan – Major activities to be under
taken to meet the quality requirement of the
market
(e) Financial Plan – Indicators (Total investment,
average income, NPV, IRR, BCR, ROI, Breakeven
Price and Volume).
(f) Socio economic benefit – job generated and
farmer’s income with and without PRDP
Table 8. Why is the target supply for Kindly validate and revise as necessary.
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
Shopwise higher than its demand?
Summary Data Sheet. The summary data Kindly fill up the Table.
sheet is not yet filled up. Moreover, the
following parameters should also be
added: (a) Women Participation, (b)
Parameters Baselin Year Year N…
Membership base, and Employment e 1
Generated.

Increase farmers income

Increase HH income

Increase Income of
Enterprise

Women participation
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)

Membership base

Employment Generated

Generally, the business plan was recycled Please double-check the entire write-up and ensure
from an earlier rice proposal submitted that there neither references to rice nor warehouse.
to a donor, as seen by the write-up on
pages 45 and 50; likewise, its is
requesting a warehouse (page 20) but
this is not part of the listed items for
PRDP support

Major

The baseline income of most target By engaging more marginalized farmers through
beneficiaries is over P 1M, and they may recruitment and supply agreements, the enterprise will
no longer be classified as “marginalized”. become more inclusive.
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)

The way that the constraints and issues Please consider reviewing the bigger picture and the
of the value chain are presented appears impact on the enterprise of the “real marginalized”
incongruent with the requested farmer-members and non-members on how to engage
interventions and vice-versa; for them to contribute in increasing production of quality
instance, the demand-supply analysis of bananas to address the issue of inadequate supply for
the cooperative shows that the annual the current demand
demand of the cooperative’s existing
market channels is 5,040 MT while its
supply capacity if only 1,920 from 100
hectares supply, indicating a gap of 3,120
MT, yet no interventions was requested
to address the issue on supply and
quality

The main action of the cooperative Since the cooperative is positioning a leader in
members to increase supply capacity is to consolidation and marketing of banana, please review
rent, of which will comprise about 48% of the business and consider other strategies to assist the
production area; the current average cooperative addressing the unmet demand of its
land area per member is more or less 2 markets; among others, this
hectares, but will increase to about 4.5
after renting new farms; increase of
members is targeted at 10 per year; while
a there is a huge opportunity for the
cooperative to tap, its actions appears to
be tempered and tends to focus and
limited only among its current members.

Intervention. There is a statement in the Kindly validate. Include the intervention if necessary in
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
business plan that “To address the the proposed enterprise to have a holistic solution to
abovementioned constraints, the the problem.
proposed enterprise is requesting for a
storage facility with provision for sorting
and grading”. However, there is no
intervention on storage facilities.
Intervention. It was mentioned in the Kindly validate this statement and revise accordingly.
Business Plan that “There are two (2) key
components of this undertaking; the
production of high quality bananas and
the post-harvest and marketing”.
However, there is no discussion on the
intervention at the production side.

Moreover, one of the proposed objectives

is “Improve average production of
Lacatan banana from 30. 2 metric
tons/hectare/cropping to _____metric
tons/hectare/cropping from year”. What
is the intervention to increase yield?
Objectives. The objectives could still be Kindly indicate the time for number 1 objective
improved by providing timelines. In (Increase farmers’ annual income from PhP ---- to
addition, there should be target increase PhP---- with PRDP intervention), for example, in Year 1.
in enterprise income.
Would the proposed enterprise would Please include increase in women participation if
increase women participation? If yes, applicable.
“increase in women participation by ___
percent every year from ______” should be
considered.
Consultancy Services. In the “New Ways Please revise accordingly.
of Doing Things”, it was stated that even
non-members can sell their produce to
the cooperative and avail of a much
higher and stable price provided they will
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
avail the consultancy services of the coop.
The consultancy services will enable non-
members to avail of the technical
knowhow from experts in banana
farming, effective techniques and
practices that will surely produce
premium bananas which is the standard
of buyers.”
As agreed during the BP enhancement,
consultancy services should be given free
as part of the capability support to the
farmer-beneficiaries.
Requirements of the buyers, and other Please discuss in the Market analysis, specifically,
marketing arrangements. The proposed Customer Analysis, the quality requirement per buyer.
enterprise will be targeting various Together with the other marketing arrangement, the
buyers with different quality and information could be presented using the existing table
quantity requirement. in the Marketing Plan but it is recommended to move it
in the “Customer Analysis”:
Moreover, it was observed that there are
marketing arrangement with the buyers
that are discussed in the different parts of
the business plan. SHOPWISE UBM/FRES DIVISORI CEBU BORACAY
H ONES A

Geographical National National National Local Local

Market
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)

Geographical Metro Metro Metro Cebu Boracay,

Location Manila Manila Manila City Aklan

Channel Manila Manila Manila Cebu Aklan Port

Port Port Port Port

Payment Check Check Check Cash Cash

Quality Premium, Premium, Premium, Class Class A-B

requirement Class A Class A Class A A-B

Price/ Pricing
Scheme
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)

Purchase Weekly Weekly 2x a 2x a 2x a Week

behavior Week Week

Operation Whole Whole Whole Whole Whole year

year round year round year year round
round round

Kindly note that the quality and quantity requirement,

including the marketing agreement should be aligned
with the information reflected in the Marketing
Agreement.

Also, all the discussion in the Marketing Plan

Competitor analysis. Since the PG will be
targeting institutional markets, the
competitors should not limited traders.
Dole, Dizon Farm, and other producers/
consolidators should also be considered
as competitors.
(Strategies) on Product, Price, Place and Promotion
should be aligned with quality and quantity
requirement and marketing agreement. The Operation
Plan should also discussed strategies on how the PG
would meet the quality and quantity requirement of the
Markets (e.g. Clean and Bruise Free).
Please focus the discussion on the “Relationship with
Suppliers and Buyers” and “Marketing Strategies” to the
competitors. Also, please consider other institutional
competitors/ supplier of lakatan banana.
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)

In addition, in the “Relationship with

Suppliers and Buyers” and “Marketing
Strategies” should be focused on the
competitors and not the PG.

Product. Aside from Class A, B and C, Manila – ponggok

there is a discussion that lakatan banana Visayas – Giant
could be classified as “Giant” and
“Ponggok”. Who among the target
markets buy either or both of the two?
How much is the selling price?
Buying and Selling Price. What is the Please clearly establish the buying price at the farmer
buying price from farmer per class? How level based on grades/ classification. In addition, please
much is the selling price per class (aside present the selling price per buyer per grade.
from PhP 51/ kg)?
Production Schedule. There ensure that Please prepare a weekly/ monthly production schedule
there will be sustainable supply of per grade and classification for one year. Indicate the
banana every week, ever month, there sources of Banana. Please use this data in assessing the
should be schedule on where a certain ability to supply the demand. Please consider the
volume of banana will be harvested. implications in the overall operational activity.
Organizational Structure. There Kindly revise accordingly. Also, please present the
organizational aspect of the business statutory benefits per employees.
could be enhanced:
(a) In the table there is a Broker but
in the figure there is none. What is
also the difference of the broker to
the marketing officer?
(b) There is a warehouseman in the
Table but none in the figure.
(c) Where is the Grievance Point
Person?
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
(d) Who is in-charged of quality
assurance from the procurement
from the farmers? Add quality
officer (include also cost)
(e) Who is in-charged in the
classifying at the Farmer’s level?
((Quality officer)
(f) Who is in-charged in the
procurement of banana from the
farmers (managed the hauling
schedule, etc)? ((Quality officer)

No EFA presented Please submit final EFA

Reject and Post-harvest losses. In the Please determine the appropriate assumption in
preparation of financial analysis, consider rejection and post-harvest losses based on the quality
the reject and post-harvest losses from requirement of the buyers, and post-harvest handling
the various pickup and delivery points practices.
from the source to the target buyers
especially losses incurred by the
enterprise.

While assumptions and conditions are Please consider presenting risks analysis and
presented as all positive, there is no mitigating measures.
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)

critical analysis of risks that can be

encountered as well as mitigating
measures to minimize impact

Please present the comparative analysis of farmers’

income with and without PRDP in line with
There is no clear presentation on how the cooperative’s interventions. Consider the incorporation
farmers’ income will increase as a result of the performance bonus aside from the dividends.
of cooperative’s interventions.

Process Flow. There is a need to separate Kindly provide separate discussion on the farmer and
the activities carried out at the farmer’s enterprise level. In addition, for the enterprise level,
level and enterprise level. please consider presenting the activities using the table
below to ensure that there are no inputs (labor and raw
materials), tools, equipment missed:

Activity Duration/ Tools, Inputs Output

Timeline Equipment Raw Labor
, Facilities Materials (Position
(item and and
quantity) Quantity)

Capital investment requirement. There Please clarify. Also, please make sure that the
are items that were not included as part investment capital required in the operation of the
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
of the investment capital requirement enterprise t should be included as part of the financial
that will be used in the operation of the analysis. Moreover, please make sure that the
enterprise. investment capital requirement to be included are
crucial in the operation of the enterprise.
Pre-canvass of vehicle and inclusion of Please canvass the cost of vehicles needed. In addition,
excise tax and other expenses. kindly consider excise tax and other expenses related to
procurement of vehicle (e.g. procuring entity is LGU).
Assessed value of the land that would Kindly submit the document indicating the assessed
be used as PG equity. Kindly provide (book) value of the land area that will be used as PG
document from the assessor’s office equity.
indicating the book value of the land.
Financial Analysis. The IRR of 164 is too It is best if this can be reduced to a more realistic figure
rosy.  by doing the following:
- reduce the annual volume of banana from Year 1
by using the current level (1,92O MT) and
gradually increase it over the 10-year period
- the reason behind this is the limitation imposed
upon the PG by the space available on shipping
lines in Davao, CDO, etc.
- while PRDP's interventions can hasten
consolidation activities in Kidapawan and
distribution in Metro Manila, the PG will be
helpless in light shipping space limitation 
- list down ports of origin, shipping lines,
frequency of voyage per week, and space
available for perishables in MT
- - reconcile the banana quality outputs per
hectare (Class ABC,R) with Compliance Report
presented last night
No allocation was provided for the  Kindly include in the computation.
following expense items:
- Broker's fees
- Employees' 14th month as
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
performance bonus
- Performance bonus for members-
suppliers as a portion of quarterly
profit, say 5%
- Taxes since the transactions are
already multi-millions (check with
CDA, BIR)
- Repairs and maintenance is too
low (how about tires?)
- Purchase of new trucks on the 4th
or 5th year to expand logistics
capacity/replace old ones
- Transportation and travel to and
fro Manila by the Manager,
Officers, etc to expand/maintain
markets  
- in the cash flow, mandatory
actions such patronage refund and
dividends distribution were not
included.

General Please ensure that all the information indicated in the

financial analysis (excel) file are presented and well
discussed in the business plan. Kindly ensure
consistency in the entire documents.

Please provide basis and discussion on the assumptions

used.
Inclusivity to small To ensure that the proposed enterprise will be within
farmers. Analyzing the the principles of PRDP which is to aide small farmers
proposed operation of the and fisherfolks, the following strategies are
enterprise, it seems that recommended:
the proposal is leaning 1. There should be limit in the farm area to be
towards the engagement committed to the enterprise by members who
Component/ FINDINGS (November 13
Unit – 17, 2017)
of farmers who has more
resources since the
establishment of lakatan
production entails Php
300,000-Php 400,000.
Also, based on the
submitted farmers profile,
most of the farmers are 1.)
Farm workers who do not
have their own land and
2.) Farm owners mostly
with 5 ha and above
(rented and owned).
Total members of the
coop is 49:
Based on the minutes
during the 5th GA dated
March 31, 2017- plans and
programs #3 increase
membership by 1%
annually
Current Operation. As
FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
already have enough resources in order to ensure
that there will be a chance for non-member small
farmers to participate in the enterprise.
2. A percentage of the production should be sourced
from the nearby non-members small farmers. Small
farmers will be engaged as contract growers
wherein the enterprise will provide interventions
such as but may not be limited to planting
materials and free technical assistance on GAP
production in order for them to produce the quality
of lakatan needed by the enterprise. All of the
farmers produce will be bought by the enterprise at
a reasonable price.
3. The small farmers who will be identified by the
enterprise as contract growers should eventually
be given the chance to be a member of the
cooperative as part of the target expansion on
membership.
In the first year, engage non-member small farmers.
This is with the end goal of them being official members
by next year, which is part of the target.
The increase of members as per the draft business plan
is 10members annually, or 9.8% annually. With this, it
is recommended that the direction of the PG is in line
with the PRDP’ proposed business plan.
Also, indeed necessary that new members annually will
be from small land holders/ small banana (lakatan)
farmers.
Kindly reconcile this during the consultative meeting.
The final target increase in the number of members
should be reflected in the business.
In the Description of the Business Enterprise section of
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
per discussion with the the BP, please discuss in detail the current operation of
PG, they are currently the PG’s enterprise. Please incorporate the following
supplying lakatan to information
Rustan’s and other high- 1. Current buyer/s, volume supplied per period,
end markets in Manila. product class, price, frequency of operation, and
The current operation other marketing agreements
however was not clearly 2. Manner of operation, current activities, existing
presented in the business equipment and facilities, rental services being
plan. availed and cost
3. Current income from the operations
Marketing Aspect. There In elaborating discussions, please ensure that the
is still a need to elaborate following information are included
discussions in the
marketing aspect such 1. Target Buyer
that the demand gap, a. Name of Buyer
products, target buyers, b. Location
prices, and etc are clearly c. Volume reqt per period
defined. d. Committed volume to the enterprise per
period
e. Product class
f. Frequency of purchase
g. Manner of purchase (pick-up or
delivered)
h. Terms of payments
2. Competitors Analysis
a. Name of Competitor
b. Location
c. Product being supplied
d. Market Outlets/buyers
e. Volume requirement per period
f. Manner of delivery and other terms with
their buyers
Marketing Agreement. Kindly submit signed Marketing Agreements.
The marketing Unconsumed POs with existing buyers could also be
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
agreements should reflect submitted.
the following provisions:
(a) Quality
requirement of the
buyers
(b) Pricing scheme
(c) Payment mode
(d) Delivery mode
(e) Volume per
delivery
(f) Frequency of
delivery
Marketing Plan Proper presentation using picture (visual actual
picture) and thru detailed discussion since the coop’s
Lacking presentation of operation is existing:
the existing operations
and products for highend 1) Presentation of the lakatan product by classes A,B
market and class c market. which is for high end market such as rustans, SM hyper
market, welcome etc,
Highlight the 2) and for visayas-cebu and boracay class c
“Traceability” of the
lakatan as the sweet, include pictures in product form,
makinis etc as the USP of packaging, sizes, technical description etc.
the coop.
Percentage increase in Kindly consider historical data from buyers for demand
demand. The increase in projections.
demand could be based on
the historical data from
the target buyers (e.g.
Rustans, Shopwise).
Small farmers to It is understandable that during the first year the small
penetrate institutional farmers could only sell its class C especially on the first
buyers buying GAP year. However, it is recommended that they be
certified banana at a capacitated through the enterprise (e.g. GAP training
Component/ FINDINGS (November 13
Unit – 17, 2017)
premium price. During
the discussion, it was
raised that small farmers
who are not GAP certified/
not practicing GAP would
sell their produce to
buyers in Visayas that buy
class C cardava banana.
PG as guarantor. What is
the arrangement between
PG and members who
borrowed from
LandBank?
Operational Plan. The
operational plan is have a
discussion on the
production of lakatan.
However, the overall
write-up does not capture
how the resources will be
utilized and if the
proposed operation will
be effective and efficient.
Operation Plan
FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
and certification) to target institutional buyers of class
A/ GAP certified cardava banana.
Kindly clarify the arrangement between PG and farmer
members.
Please improve the discussion by elaborating and
including the following:
1. Source/s of Lakatan
a. Contract growing scheme
2. Production Calendar
3. Production Schedule/Plan per production cycle
4. Per activity discussion of Lakatan production
and enterprise operation considering the
following information per PRODUCTION CYCLE
a. Raw materials requirement
b. Quantity and quality of raw materials
requirement
c. Manpower requirement
d. Facility and equipment requirement
e. Output per activity
f. Quality and quantity of output per
activity
5. Clarified Equipment and Facility Utilization
Schedule
Please highlight the existing operation of the coop, and
the INNOVATION in terms of its operations. As such the
Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
Lacking discussion of the 2 hauling trucks in the field, 1 truck in manila.
existing operation and its
details.
Capacity Utilization. Please establish the production and delivery and/or
There is a need to assess hauling schedule on a monthly basis. These information
the utilization of the would be used in assess the capacity utilization of the
facilities, equipment and proposed facilities, equipment and vehicles.
vehicles to be requested
vis a vis the schedule
production and delivery to
the buyers.
Cost – Benefit Analysis of Please preparing a comparative cost-benefit analysis of
the vehicles requested. renting and owning a vehicle.
There is need to establish
the cost and benefit if it
would be better to own or
rent vehicles (outsource
logistics). All expenses
should be included.
Organizational Structure Please ensure that the identified workforce will
complement and support the activities identified in the
production and operational plan.
Salaries and Wages. Please include a discussion on the per month
There was no discussion remuneration of the staffs. Please ensure that full time
on the remuneration of employees should receive remuneration not below the
the staff to be employed provincial wage rate and should compensate with
under the enterprise. his/her level of authority in the enterprise.
Investment Capital Please include as all items for capitalization based on
Requirement. The ICR the needs in the enterprise operations.
does not reflect all the
items part of the
capitalization (e.g. number
of crates needed for
operation).
 Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
Sustainability plan. Include one of the strategies to look for other markets.
GGU No Geotag Email to prdpggu.psomin@gmail.com the electronic
copy showing the ff:

1. Placemark of Local Government Office (i.e.

Capitol, Municipal Hall, Barangay hall) where the
subproject is under its jurisdiction;(KIdapawan
City)

Digitized track of the nearest route from Local

Government Office to the proposed subproject
site;(Kidapawan City to PG Office)

2. Office location of the proponent group lead

PGMua-an Farmers Producers Cooperative
(MFPC)-ok/complied
3. Placemark Location of:

a) Target Buyers- not complied

Shopwise-ok Manila
RustanSupermarket- Manila
ok
We’llcome Manila
Hypermarket
Divisoria-ok Manila
Fresh One-ok Manila
Hotels-JP Fresh Manila
(supplier)-ok
Cebu-Port Visayas
Boracay-Local Market Visaya
-ok

b) ports for shipment to Manila, Cebu and

 Component/ FINDINGS (November 13 FINDINGS (November 21 – 25, 2017) RECOMMENDATION RESPONSE
Unit – 17, 2017)
Boracay .- Davao Port, CDO port, Davao
Airport-not yet complied
4. Geotagged photos (at least four geotagged photo
of site of the proposed

Digitized polygon of the vicinity or site

development; -not complied

5. Source Location of Raw Material:

Commodity polygon verifies the availability and

sufficiency of raw material source to be used or
processed in the business plan. The total area
(digitized) is at least 50% of the total commodity
area (as stated in the Business Plan) to hit the
target volume of 3,020MTfor the 1st year.
Minimum of four (4) geotagged photo
(commodity) is required per production area.

Total Polygon of Production Area is only 87 has.-

is this 50% of the total production area sufficient
to hit the volume of 3,020 MT?

SES
OK for RPAB
M&E

Procurement

Finance