Republic of the Philippines

BENGUET AGRI PINOY TRADING CENTER

Strawberry Fields, La Trinidad, Benguet

TERMINAL REPORT
Assessment and Planning Workshop for the Enhancement of the Intensified, Profitable and
Sustainable Operation and Management of the Isabela APTC
Mayors Conference Hall, Municipal Hall, Roxas, Isabela
December 16, 2016

The 1st Assessment and Planning Workshop for the Sustainable Operation and Management
of the Isabela APTC was conducted Mayors Conference Hall, Municipal Hall, Roxas, Isabela
on December 16, 2016.

The activity was started with an invocation by a staff of the MLGU followed by
acknowledgement of the participants. Jonathan Jose C. Calderon, the Municipal Mayor
acknowledges and welcomed the participants. He thanked everyone, he said that the
presence of every is a good jumpstart for the sustainable operation of Isabela APTC. He said
that the recommendations of everyone present is very much welcome. He said that the
involvement of the nearby provinces in the vegetable market particularly Tabuk City, Kalinga
and Tuguegarao, Cagayan and other APTC particularly NVAT and BAPTC could pave the way
for the potential operation of the Isabela APTC. He is hopeful that the assessment and
workshop, a good plan will be crafted in order for the APTC to operate.
Director Lucrecio R. Alviar Jr., Regional Executive Director, DA-RFO 02, acknowledges
and thanks the visitors and participants. Gave a short message. He said that for the APTC to
operate, there should be involvement of the various Trading Centers within Northern Luzon.
But he said that before it will happen, there should be an appropriate and workable policy.

Engineer Leandro H. Gazmin, DA-Assistant Secretary, told that they are being
criticize because of the nonoperational of some APTCs and he said that DA-Central office or
the National Office does not have the capability to identify problems of all the APTC but the
host LGU. The bottom line, he says is to make it operational, farmer friendly and
sustainable.

Roxas LGU staff reported the updates of APTC as to the operation on:
1. Slaughter House
2. Auction of Live stocks
3. Trading of fruits and vegetables

Ms. Myrna M. Millante, Isabela APTC General Manager reported on the cureent
issues and concerns:
1. No contact numbers of farmers and traders;
2. Insufficient no. of personnel;
 -The personnel are LGU staff where they report on 8:00 a.m. to 5:00 p.m., Monday
to Friday;
3. Management council does not yet convene;
4. Small quantity of produce being transacted;
5. Fifty cents (.50) service charge discourage the farmers and the traders;
6. There is no much supports from farmers’ cooperative;
7. There is problem in the marketing aspect.

Ms. Sophelina Flores, Municipal Agriculturist reported on the support provided by

the DA-RFO 02 to the vegetable farmers such as farm machineries and equipment (20
cultivators, 20 water pumps, sprinklers) and seeds. There are 235 farmer beneficiaries.

Ms. Vivien L. Delos Santos, AMAD Chief, DA RFO 02 talked about the projects in
support of the Isabela APTC:
1. Production start-up kit (seeds and fertilizers)-provided that the produce will be
traded at the APTC
2. Farmers training at ATI
3. Advocacy on GAP
4. Initial test kit for pesticide residue
5. Towards GAP Certification
6. Market inter linkage
7. Others (Assistance to those farms damaged by Lawin)

Mr. Gilbert Cumila, NVAT General Manager greet those all present before sharing
what they have experience in operating NVAT. He said that NVAT operation was not the
best practice but which is considered favorable to all stakeholders. NVAT is SEC registered,
operating as a private corporation.
Year Milestone
2000 A Twenty Million (20,000,000.00) pesos award for winning the 3 rd price in Gawad
Saka was used as a start-up capital
2002 Construction of the facility
2004 As its Initial operation, its mission/vision is to prioritize farmers’ cooperative,
however, it did not work, they are still doing their trade at Bambang National
Highway and the management lacks marketing experience.
2005 Relaunch of the facility; Mr. Cumila became the Manager and ask permission
from the Board to involve the traders/disposers from the national road of
Bambang, invite them to do their trading at NVAT and to decongest traffic along
the highway.
2006 There is still small items of farm produce being transacted at the facility, thus,
the traders/disposers was involved in the operation of the center.
2007 There was already full operation

Some Operational Policies considered to have helped the farmers:

1. NVAT has a regulated the supply system wherein the sharing of profit is 70-30, 70%
for the farmer and 30% for the trader, before, it was 50-50 sharing;
 2. Payment is on cash basis;
3. Buyers have a developed a trust to their suki (farmer/Trader) because of ensured
quality;
4. There is production loan to farmers;
5. Crates were provided to the farmers on loan.

He further says that, seventy percent (70%) of vegetables that is being traded at the
facility came from Benguet the other came from Aritao and Tinoc, Ifugao. As to the pricing,
it still the law of supply and demand that will prevail. The trading hours is from 2:00 pm up
to 12:00 midnight.

Lastly, he said that NVAT is considered successful for 90% of all the stakeholder are
happy. He then suggested recommendation that:
1. BAPTC will be the one to initiate inter-trading with the Isabela APTC and others for
considered the mother of all APTC;
2. There should be an APTC within Metro Manila;
3. Isabela APTC to become a Corporation; and
4. Free services to the farmers e.g. crates

RED DA-CAR Caranguian give a short talk, reporting what transpired during the
BAPTC experimental trading and that he is excited to the upcoming trading.

Sir Ruben Dulagan, DA-AMAD Chief talked about inter-trading operation of BAPTC,
he mentioned particularly rice as one of the subject of inter-trading and Isabela APTC will be
the hub for the highland vegetables that can be distributed to Kalinga area, Cagayan area
and even Laoag if possible.

Open Forum

ASEC Gazmin mentioned about Sentrong Pamilihan being manage under Public-
Private Partnership (PPP), he said that it is one of model for the Isabela APTC to adopt for it
to operate or adopt NVAT which is private sector led. Though traders are most in the upper
hand or dominant when it comes to trading negotiations, the APTCs can regulate them. The
root cause of this dominance is the difficulty of farmers in accessing credit, traders can just
give what the farmer wants, it does not need to accomplish a lot of documents compared to
government financial institutions.
Don’t wait for the farmers to be capacitated, you must learn from NVAT experience,
he says. Bid out the operation e.g. rental and up-kept of the facility, lease out the spaces
and the DA will be the one to monitor the relationship of the Trader and the farmer if there
is an edge of one.
There are 5 Trading centers that are now operational, communicate and link with
them. Make a target of 2 years in capacitating farmers as to the quality of their produce,
packaging, GAP ready and is sustainable before linking on national level.
 As to the APTC in Manila, make sure first that the operation in the province are good
and smooth. But the DA central office could be a hub of information, a virtual linkage could
be done as long as there is a good quality, handling and packaging. The virtual linkage has
already had an example, Secretary Pinol done it already on Onions farmers, they were linked
to institutional buyers.

Sir Cumila said as per the experience of one of their farmer cooperative, when they
brought assorted vegetables in Taguig Market, they bargain the produce to the retailers, no
wholesaler bought their commodity. There should a trading center where all the highland
vegetables be consolidated before it will be distributed all around Manila, hence, the
suggestion of Manila APTC.

RED Alviar said that the government could only set up guideline, they have no
flexibility compared to a private corporation. He then asked the NVAT Capitalization from Sir
Cumila, the former told that before, LGU controls about 70% Traders and Farmers 5%
Cooperative and farmers association 25%, now, Traders and farmers are the dominant
owners, they control 60% LGU reduced to 28% and the Cooperative and farmers’ association
12%. Thus, basing on the mentioned capitalization, the core factor in order for the Isabela
APTC is to change the management and ownership, he says.

Sir Cumila further said that the NVAT income come from rents of the stalls, linkage
to institutional buyers and interest from production loan to farmers. Also, one of their
services is to construct stall for the investors.

Next Activity

Craft a guideline through the SB transforming the APTC to a Corporation

Mr. Racelis as the guest speaker presented and discussed the following topics:
1. The importance of Organic Agriculture;
2. followed by lectures on the Organic Act;
3. Role of other Government Agencies in the implementation of the organic program;
4. No. of certified organic farmers and those who submitted their application for
certification;
5. Subsidy on the certification;
6. Areas devoted for Organic agriculture;
7. The 26 resolutions and 14 guidelines for organic vegetables ready for approval;
8. Promotion of Organic products in local and international market.
Lastly he urges organic vegetables consolidators to help in dissemination that organic
vegetables is safe food.

Ms. Lilibeth Paraoan, DA-CAR Organic focal person, added that their system (OMIS) on Data
Gathering developed by NOAP which would be implemented this 2017, wherein inputs
regarding organic practitioners and products can be submitted online through DA- RFU
Organic Field Office to DA Central Office. This would record accurate and credible data
thereby controlling those 3rd Party Consolidators who claim to be organic. There will be
regulation process, she says. She further gives updates of the Region’s Organic Vegetables
status particularly on those applying for certification and those applying for organic market
stalls.

Ms. Irene Lapus, Quality Control Officer of Mama Sita discussed qualities of Heirloom Rice
that can be exported that it should be free from all kinds of foreign matters. Also lectured
on the characteristics of good warehouse to store heirloom rice and the logistics in
transporting so that it will be free from microbial contaminants and that the moisture
content will be maintained.

Dr. John Tinoyan, the City Health Officer of Baguio discussed the following:
1. Talked on the health benefits of organic vegetables;
2. He discusses organic farming and introduces some organic fertilizers that can be
formulated at home;
3. Advantages of organic agents;
4. Herbal Medicine that can be found in backyards; and
5. Toxicity of synthetic and chemical fertilizers.

Mr Rogel Marsan, a candidate for gawad saka for organic farming, talked on the
opportunities and challenges of organic agriculture. He told the challenges when they are
organizing LaTop. He then ask the from among audience to organize a group to concentrate
on just formulating organic fertilizers and insecticide, he then cited ATI and DA for those
interested to ask for trainings, that way, there will be more production of organic vegetable.
The organic farmers will just only plant and not also formulate their own fertilizers. He
lectured also on how to documents and record the farming activities, from nursery to
harvesting.
 Mr. Jefferson Ng, The Manager of Supreme Hotel and the Vice-President of Hotels
and restaurant association of Baguio give a short talk on their needed commodities, he then
invited cooperatives or groups who can supply or partner with them for the former have
regularity of production and can sustain the later
needed vegetables. He then ask also if there could be a market matching during their
quarterly meeting for at there are at least 30 hotels and restaurant in attendance during
such meeting.

Day 2 October 27, 2016

In the 2nd Day, a least, 3 topics were presented before the B2B Encounter;

a. Baguio-Benguet Diocese Marketing Assistance Program for Organic Agriculture

Dr. Rogelio Colting discusses Farmers Haven, An organic Farming project of the Diocese
of Baguio-Benguet. How it begun and how it is today. There were challenges that they
encountered though;
1. The lack of marketing system;
2. All the workers are volunteer, he himself volunteered;
3. Sometimes, over supply and or lack of supply was delivered;
They were able to coup to this challenges when they were able to establish network
of local markets such as Porta Vaga, San Jose Church, La Trinidad, Benguet, St
Vincent Church, Naguillian and St. Joseph Church, Pacdal, Baguio City, also, they
were able to deliver to Metro Manila thru Caritas Manila.

b. Response to Emerging Business Opportunities: Sustainability Plans and

Interventions
Organic Agriculture Program Coordinator for Marketing Services (AMAS) staff
presented the topic for Engr. Gazmin (Director, AMAS). He emphasized that at present,
there is a continuous demand for organic products locally and abroad. The main concern
she said is, that supply should sustain the market requirements especially institutional
buyers like hotels, big restaurants, caterers and processors as well as export markets.

c. Grain Quality And Nutrient Analysis of Heirloom Rice

Dr. Digna Manzanilla, Social Scientist, IRRI Co-Project Leader, Heirloom Rice Project,
said that DA Cordillera, IRRI and PhilRice and the farmers are currently working together
to conduct studies regarding the nutritional value, genetic diversity, grain quality and
the development process toward geographical indication of the different varieties of
Heirloom Rice to add value in its market. She presented also the baseline nutrition
analysis of selected Heirloom Rice done in 2014 at IRRI. Heirloom Rice is rich in iron,
sodium, calcium, niacin, folic acid, proteins, carbohydates and anti-oxidants which are
being sought after by health practitioners. While in terms of anti-oxidants properties,
the more colorful the grain the higher anti-oxidants contents. She said that Heirloom
Rice are healthy and nutritious and that they have different quality that may fit in
different market niches.

Prepared by: Reviewed by:

BRENT I. PASIAN ARDAN P. COPAS

TPOD Officer II TPOD Managing Director/ OIC- DCOO

Noted by:

VIOLETA B. SALDA
COO