OTOPreneur June2010 Edition

Homegrown business partners in the countryside

JUNE 2010 ISSUE

Maitum, Sarangani Shores Photo by Omar GallineroFront: DTI OTOP product Back: Bangsi Festival, Region 10

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HOMEGROWN BUSINESS PARTNERS IN THE COUNTRYSIDE

One Town, One ProductIn every town or city in the Philippines, one unique treasure stands out.

Each product is each town’s gift to the country; each town’s gift to the rest of the world.

Filipino craftsmen mold the vast natural resources available to them.

Wood is sculptured into works of art, capiz shells are shaped for window panes

and twigs are turned into grand centerpieces.

Local resources and technology converge into export and import substitute products.

Technology-enabling mechanisms offer possibilities to overseas Filipino workers

to become investors.

The brawns of these artisans are molded by the rugged terrain of the archipelago;

their minds draw inspiration from the country’s vibrant past;

their creativity and resourcefulness driven by endless possibilities technology offers.

Collectively, their artifacts, services and constantly evolving products are called

One Town, One Product Philippines.

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© 2010 DEPARTMENT OF TRADE AND INDUSTRY PHIL IPPINES

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OTOPreneur is published by theRegional Operations and Development GroupDepartment of Trade and IndustryMakati City, Philippines

Executive Editor: Merly M. Cruz, Undersecretary, DTI-RODGManaging Editor: Rey F. ReromaEditorial Consultant: Maria Lourdes M. LucesArt, Design & Production: Ideabank, Inc.

Special thanks to Omar Gallinero and Sam Igloria

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The story of the stone soup

Jesli A. LapusSecretary

any years ago, a man appeared at the village square and asked for a big pot with water. The townspeople gave him the biggest pot they could find, filled it

up with water, and watched as the man took out a stone from his bag and dropped it into the pot. “Now this will be a fine soup, ”he said,” but a little bit of garnish would make it wonderful!” One villager ran home and returned with a handful of parsley and some onions. As the soup was boiling, more villagers went back to their houses and brought out whatever they had. Soon barley, carrots, beef and cream had gone into the great pot. When the soup was done, they gathered around a table and had the most memorable meal of their lives. In the morning the stranger awoke to find the villagers around him, offering their best breads and cheese. An elder said, ”This is our way of thanking you for sharing with us the secret of how to make soup from stones.” The man said: “There is no secret but this: “It is only by sharing that we can make a feast.”

This is an old story that has undergone many variations around the world, but has retained its basic message: cooperation is essential to success. It is the fundamental principle behind industry clustering-the core strategy in implementing One Town, One Product (OTOP) Program. In industry clustering, related and supporting firm are linked together so they can share resources, enhancing their overall productivity and competitiveness.

Among the stories in this edition of OTOPreneur, the story of the muscovado stakeholders in Antique stands out. By coming together and collectively dealing with the challenges with full recognition of their potentials and resources, the muscovado

producers emerged from a deeply entrenched individual village-level mill paradigm to an organized industry strengthened by partnerships even among competitors. The growing industry in Panay province demonstrated the power of collective efforts among government and non-government agencies and the stakeholders.

But there is another story. The Antique success can be traced to the success of the industry clustering approach in Northern Mindanao that drove the DTI to push for the replication of the strategy in the Visayas province. Shared experiences and best practices from Mindanao were no small ingredient considering that today, the muscovado industry in Antique enjoys productive collaboration among stakeholders and is at the verge of market expansion.

The concept of collective action to achieve tangible results is the main ingredient in the stories in this issue of OTOPreneur, showing how far public and private sector partnership can take us. It is the contemporary variation of the stone soup story.

Let this publication be a tool for the promoting micro, small and medium enterprises to rev up the economic engines in the countryside. One successful enterprise means several jobs. Another two or three and more will mean more and more jobs. It is thus our goal for the OTOP program to help business grow and become successful as a significant contributor in creating a robust economy in the countryside.

Who then was the man in the story who made the stone soup. He could stand for anyone; he could also be an institution, such as DTI, acting as stimulus generating contributions or ingredients from everyone so all of us can sit around the table and enjoy a sumptuous meal.

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t the outset, let me congratulate all the awardees in the 2010 OTOP Congress! Since the inception of the OTOP Program

in 2004, our enterprises--particularly those in the countryside, have been ushered into new and better opportunities giving rise to new partnerships tapping into a wealth of home grown talents.

It is therefore appropriate and fitting that we honor their exemplary performance as we celebrate their remarkable achievements and contributions in propagating One Town One Product Philippines. Not to forget are the local governments and government- and private-sector partners whose investments boosted the dynamo on countryside trade and employment. To all of them, our congratulations!

This year’s congress also made special citations of OTOP flagship enterprises. With their local governments, these green enterprises advocate sustainability by using green materials and employing green practices. We hope that others follow their outstanding examples.

To all the awardees, guests--led by President Gloria Macapagal-Arroyo, partner agencies, supporters, and all the men and women making up the OTOP community, we thank you for joining us in that important occasion.

Marking that same day was the launching of the OTOPreneur magazine. The maiden issue captured the evolution of a selection of flagship products now having a life of its own creating an impact in our countryside growth.

Meanwhile, we are particularly proud to present the fruits of the hidden talents of our

provincial and regional staff who wrote the stories for this edition. I say “hidden” because they never knew they have it until today.

Engaging with entrepreneurs is a daily occurrence in the DTI. But writing about the entrepreneurs’ compelling narratives was a surreal experience to some of our staff whose writing experience revolves mostly on the technical rather than on the creative genre.

“It is always exhilarating to hear stories of determination, hardship, and eventual triumph. But to hear it first-hand and be the one to share it to the world is certainly a thrill,” said Fatima Parahiman of her writing experience.

Roger Petinglay was grateful for the opportunity. His story on the muscovado industry in Antique tells the world that, “we are creating small ripples in our province that when put together form a tidal wave of success.”

It was maternally insightful to Fahmela Racquel Villanueva, who wrote her story with someone kicking in her tummy. “I really thought pregnancy and writing don’t mix well. But the entire experience proved me otherwise. Writing the story for our SMEs was like nurturing a life in the womb…both required passion and dedication,” she mused.

Sixteen stories, one from each region, reside in these pages. We promise to continue to capture and document our collective efforts and spread the good news happening in the countryside.

Join us in this journey. The success stories captured in these pages could be well your story too.

Inspiring journeysMerly M. Cruz

Undersecretary Regional Operations and Development Group

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bout a thousand representatives from all over the Philippines gathered at the Philippine Trade Training Center in Pasay City on March 12, 2010 to celebrate the milestones of the One Town One Product Philippines.

Highlighting the event was the recognition of the micro, small, and medium enterprises for their outstanding achievements with Her Excellency Gloria Macapagal-Arroyo, the nations’ OTOP prime mover herself, conferring the awards.

The three categories of the awards are Outstanding OTOP MSME, the Best OTOP

Implementer, and the Most Supportive OTOP Partner Organization. For each category, there is a national winner and island winners from Luzon, Visayas and Mindanao. Environment-friendly OTOP under the bamboo, bayong, and water hyacinth flagship projects also received special citations.

Parallel events at the gathering were regional product showcase and fashion show. The annual OTOP Congress also serves as a venue where learning and insights are shared and commitments are renewed.

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Outstanding OTOP MSMEs

National and Luzon Island winner Bagong Barrio Multi-Purpose Cooperative, Bulacan

Luzon Island winner Ai-She Footwear, Laguna

Visayas Island inner Iloilo Kawayan Marketing, Iloilo

Mindanao Island winner Lao Integrated Farm, Davao del Sur

Best OTOP Implementers

National and Visayan Island winner Municipal Government of Numancia, Aklan

Luzon Island winner Provincial Government of La Union

City Government of Balanga (Bataan)

Mindanao Island winner Municipal Government of President Quirino, Sultan Kudarat

Most Supportive OTOP Partner Organization

National and Mindanao Island winner Bureau of Fisheries and Aquatic Resources, Zamboanga del Norte

Luzon Island Winner Department of Science and Technology (Region 3) and

Chamber of Commerce San Pablo City (Laguna)

Visayas Island Winner Negros Oriental Investment Promotion Center

CITATIONS for Environment-Friendly OTOP

Bamboo flagship project

CAR Carlo’s Bamboocrafts and Furnishing, Tayum, Abra

Region 3 Woodinspirations Crafts, Sta. Ignacia, Tarlac

Region 6 Iloilo Kawayan Marketing, Maasin, Iloilo Bayong flagship project

Region 2 Integrated San Lorenzo Entrepreneurs, Lal-lo, Cagayan

Region 4-A Luisiana Weavers’ Multi-Purpose Cooperative, Luisiana, Laguna

Region 5 Analobel Enterprises, Matnog, Sorsogon Water Hyacinth flagship project

Region 3 San Miguel Water Lily Producers Association, Calumpit, Bulacan

Region 4A Baby’s Water Lily Handicrafts, Calamba, Laguna

Region 5 Buhi OTOP Key Players Association, Buhi, Camarines Sur

REGIONAL FINALISTS

Outstanding OTOP MSME

NCR F Salon & Body Spa International, Inc.

CAR Carolo’s Bamboocraft and Furnishing

Region 1 Tim’s Loomweaving

Region 2 Lighthouse Cooperative

Region 3** Bagong Barrio Multi-Purpose Cooperative

Region 4-A* Ai-She Footwear

Region 4-B Nina Food Products

Region 5 Labo Progressive Multi-Purpose Cooperative

Region 6* Iloilo Kawayan Marketing

Region 7 Bohol Beads and Fibers

Region 8 Lola Concordia Agro-Industrial Farm and Processing, Inc.

Region 9 Montano Foods Corporation

Region 10 Sphythe Global

Region 11* Lao Integrated Farm

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Region 12 Sultan Kudarat Muscovado Farmers and Millers Corporation

Caraga Ocean Bounties Fresh and Frozen Foods, Inc.

Best OTOP Implementer

NCR City Government of Quezon

CAR Municipal Government of La Trinidad, Benguet

Region 1* Provincial Government of La Union

Region 2 Municipal Government of Lallo, Cagayan

Region 3 Department of Science and Technology – Region 3

Region 4-A Municipal Government of Liliw, Laguna

Region 4-B Municipal Government of Roxas, Palawan

Region 5 Municipal Government of Calbanga, Camarines Sur

Region 6** Municipal Government of Numancia, Aklan

Region 7 Municipal Government of Inabanga, Bohol

Region 8 Municipal Government of Guiuan, Eastern Samar

Region 9 City Government of Dipolog – Zamboanga del Norte

Region 10 City Government of Valencia - Bukidnon

Region 11 Municipal Government of Monkayo, Compostela Valley

Region 12** Municipal Government of President Quirino, Sultan Kudarat

Caraga Municipal Government of Sibagat, Agusan del Sur

Most Supportive OTOP Partner Organization

CAR Department of Labor and Employment – Mountain Province Field Office

Region 1 Department of Science and Technology – Ilocos Norte Provincial Office

Region 2 Philippine Chamber of Commerce and Industry – Cagayan Chapter

Region 3* Department of Science and Technology – Region 3

Region 4-A* San Pablo City Chamber of Commerce and Industry

Region 4-B Provincial Government of Oriental Mindoro

Region 5 Leighton Contractors (Philippines), Inc.

Region 6 Taytay sa Kauswagan, Inc.

Region 7* Negros Oriental Investment Promotion Center

Region 8 Department of Science and Technology – Samar Provincial Office

Region 9** Bureau of Fisheries and Aquatic Resource – Zamboang del Norte Provincial Office

Region 10 Xavier University – Sustainable Agriculture Center, Bukidnon

Region 11 Department of Labor and Employment – Davao del Sur Field Office

Region 12 General Santos City Smal and Medium Enterprise Development Council, Inc.

Caraga Department of Agriculture – Agusan del Sur Provincial Office

The Board of Judges of the 2010 OTOP Awards is chaired by Mr. Virgilio Angelo, chairman and CEO of SB Corporation. The members are Ms. Leonor Abella, vice president for promotions of the Confederation of Philippine Exporters Inc.; Commissioner Florencia Cabatingan of the Philippine Commission on Women; and Mr. Benjamin Philip Romualdez, vice-president of the Philippine Chamber of Commerce and Industry and president of Benguet Consolidated.

* Island winner** National champion

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Fashion delight at the OTOP Congress

Bags and hats made from indigenous raw materials, from the classic buri fiber to the ingenious water hyacinth leatherette. Necklaces, earrings, and bracelets made from varieties of coco wood, shells, and carabao horns.




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Indag-an Multi Purpose CooperativeBarangay Indag-an, Miag-ao, Iloilo

Behold the beauty of hand-woven textiles

Norberto FerolinoManager

+63 (33) 315-9722


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Inang’s D’Original Tipas BakeryTaguig City, Metro Manila

NCR

ByPrincessFatimaT.Parahiman

Belen Flores, founder of the bakery, wanted to prove that Filipinos can create hopia with taste and price like those produced by the Chinese.

“Some even came in buses!” exclaimed Inang Belen recalling the time Tipas hopia was so popular that even the Chinese came to Tipas to grab a bite.

The company banked on the customers’ loyalty and discriminating taste when competition tried to imitate their product and falsely labeled it as Tipas Hopia.

A small bakery with business operations hubbed in the kitchen gave rise to a multitude of enterprises that has been passed

on to generations of entrepreneurs.




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ith its plain, flaky crust and simple bean filling, the humble hopia may be just another delectable snack. But for Belen Flores, founder of D’ Original Tipas Bakery, Tipas hopia is a testament to the fulfillment of a girl’s dream of someday owning and managing a successful business. What started as a small bakery with business operations hubbed at her house’s kitchen gave rise to a multitude of enterprises that have been passed on to her children and now her children’s children.When asked to share the values that have helped her attain and sustain business success, Flores, or simply Inang to her family and friends, cited three. “Unahin ang Diyos (God above all else),” she proclaimed, saying God will provide all your needs. “Mahalin mo ang tao (Love your people),” and your people will love you back, she declared. And, “Determinasyon (determination),” she stressed. Focus on what you are doing and plan ahead, she added.After making Tipas in Taguig known for this delectable snack, the family now prepares to give the world a taste of Tipas Hopia.

Faith in God

Inang recalled staring at a neighboring house that keeps a retail store of dry goods, vegetable, and fish at its front yard. She admired the success of the family-run business and pondered deeply on how she could someday have her own. Inang was 12 then. Finally, in 1964 the idea bulb lit. Her son would buy pan de sal in a nearby bakery coming home empty handed. With this, she thought she has stumbled upon a market for pan de sal. “Find a need, then supply and fill that need,” she said, gearing up ready to seize the opportunity.And so she did. Armed with a starting capital, basic knowledge about baking and lots of guts and enthusiasm, Inang opened up a small pan de sal bakery with a few helpers – the Tipas Bakery broke ground. During that time, Inang pushed hard to make her business prosper. She strongly believed that the owner herself must know the intricacies of the trade and thus involved herself in most of the chores, from preparing the dough to baking and marketing. Together with her husband, Pedro, she would deliver pan de sal to customers around parts of Taguig, from Tipas, to Napindan, to Fort Bonifacio. Further, she focused on improving her baking skills. She would experiment and try out different mixtures to create new pastry products. It is no wonder that most, if not all, of the products of the bakery stemmed from her ideas and flowed to her bare hands. It was only in 1988 when Inang and her bakery produced its first hopia product – Hopia Mongo. The inspiration to sell hopia came from her customers. A

couple who was one of her loyal customers wanted to put up a hopia factory but didn’t have enough start-up capital. Instead, the couple decided to introduce Inang to a baker who could help them prepare and sell hopia with the couple working as the one of the bakery’s distributors. Inang eagerly took the challenge wanting to prove that Filipinos can create hopia with the taste and price of which would rival those produced in the local Chinese factories. The first few boxes were an instant hit and left the customers hungry for more. “One of the most memorable,” Inang recounted, “was when Tipas Hopia was so popular that even the Chinese went to Tipas to grab a bite of our product. Some even came in buses!” The business may have started with only a few helpers but with a family of 11 kids, the workforce of Tipas Bakery was undeniably strong. Inang did not forget to impart to her children the value of hard work by exposing them early in the business operations. She narrated teaching her kids at an early age that initiative and hard work truly pay. “I asked them to do simple tasks. One of them would slice the bread, another would spread butter on it and another would place them in the oven to toast the bread. The income earned from selling those would be divided among them.” Early on, they became interested in business and grew up to become enterprising individuals.Inang exploited her family’s interest in entrepreneurship. With better experience in running a business, Inang started several other businesses after Tipas Bakery did well. She would micromanage the business at the beginning and later turn over the reins to her children. One by one, she has guided all her 10 children into new ventures breaking new sources of income. D’ Original Tipas Bakery is now owned by one of her daughters, Alicia Flores-Sta. Ana, also charged with enhancing the product and expanding its market. Sta.

Tipas bakery owner Alicia Sta. Ana shows a box of newly-baked hopia she packed herself.



Ana has now her own family to support her dreams of taking Tipas hopia to greater heights. Her eldest son, Rafael, who obtained a degree on food technology at the University of Santo Tomas, assists in molding the product into a world-class Filipino snack. Looking back at her journey, joy and pride are all over in Inang’s eyes. Her family worked together to build their business and succeeded. She is now sharing her childhood dream with her grandchildren along with the faith, determination and hard work that came with it.

Excellent relations

Inang, and now with her daughter Alicia Sta. Ana, also credits their success to the wonderful relationship they have with their employees and the guarantee of satisfaction they offer to their customers. By putting a premium on the quality of their product, Tipas Bakery shows how much it values their customers. Like other businesses, the bakery had to endure the rising cost of production. But unlike some businesses, Tipas Bakery would never let product quality suffer. To cut back on costs, they looked for ways to lower the cost of their utility expenses and tried to reduce electrical consumption. They also looked for alternative raw materials and arranged with the suppliers to keep prices at reasonable levels. The family banked on the customers’ loyal patronage and discriminating taste when competition tried to imitate the packaging of their product and falsely labeled it as Tipas Hopia. And when dirty competitors attempted to steal the Tipas hopia recipe, their efforts proved futile. The family had the allegiance of the baker and the employees. It’s a good thing the family invested wisely on establishing a strong bond with their people. They had Inang to thank for, for she knew that by taking care of employees and customers alike, “they will love and value you back,” she would always says. Inang and her family never lacked in demonstrating appreciation for their workers’ role in making Tipas Hopia grew by helping them achieve more in their lives. The family co-financed some workers to buy their own jeepneys. Others chose to pursue their education with Inang family’s help. One of them, a female employee, is now a businesswoman herself.

The makeover of Tipas hopia

Today, the market of Tipas hopia extends from Metro Manila to Laguna, Cavite, Batangas and Quezon; up north Bulacan, Pampanga, Tarlac, and Pangasinan. The development of new flavors is a constant process. Aside from mongo, they have hopia ube, hopia babo and assorted hopia. Other baked products such as choco

marbles, krinkles, siosa and banana bar are also popular with the customers. Someday, Tipas hopia would surprise us with flavors from all the colors of the rainbow – from red (strawberry) to violet (ube). This is highly possible due to the family’s interest and embrace of the support of their local government which recognized Tipas hopia as Taguig City’s 2008 One-Town One-Product in 2008. And thus, D’ Original Tipas Bakery availed of the DTI-National Capital Region’s product development, marketing, and technical assistance. As part of DTI’s marketing assistance to Tipas Bakery, the latter was enjoined to participate in trade fairs such as the OTOP Trade Fair in Global City in 2008. The following year, it received recognition from the NCR OTOP Awards. Tipas Bakery acknowledges that after DTI assistance, more people contacted them for their products. DTI-NCR supported the bakery in making the most out of the OTOP program resulting to package of assistance and funds for the business. The package included help from the Center for Industrial Competitiveness and the ECOP Big Enterprise and Small Enterprise program for the improvement of the production layout. While a certain improvements have yet to be done, particularly the installation of the aluminum insulation to improve the ventilation and the circulation of heat within the production area, the company has been enjoying the benefits. “Over the long run, we believe this is a good investment,” Sta.Ana says. The firm is gradually implementing the recommended improvements, such as the U-layout, to increase efficiency and productivity of workers through a better plant lay-out and work environment. Still under the OTOP assistance package, DTI partnered with the Department of Science and Technology (DOST) to help the company. Through DOST’s Set-Up Program, Tipas


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Bakery availed five units of mixer and two deck ovens. Likewise, Tipas Bakery underwent good manufacturing practice seminar in order to improve the company’s food handling system, and a 5S seminar on good housekeeping. The company understands that if it pursues exporting, it would have to increase the shelf-life of its products and add more appeal to its packaging design. Thus, the Packaging Research Development Center and DOST are working hand-in-hand for the packaging and product development. Latest product analysis show that Tipas hopia can last for four months by modifying the formulation of the filling and using a packaging that fits the product. The next step is to determine the nutritional value and further develop the packaging fit to its next target market – international market. With the help of the Bureau of Export Trade Promotions, Tipas Bakery has taken its very first step in introducing the product to foreign market. It has successfully participated in the recently-concluded International Food Exhibition (IFEX) 2010. With its

product well-known and more orders coming its way, D’ Original Tipas Bakery is eager to finish all preparations for exportation. Competing with other world-class food products in the global arena and given the tight competition at home, what sets Tipas hopia apart? To this, Inang beamed and said, “Puso (heart). ” After hearing her stories of faith, love, and determination, Tipas hopia’s secret ingredient for success must be something that really comes from the heart.

D’ Original Tipas BakeryAlicia F. Sta. Ana, Owner340 Dinguinbayan St. Ibayo Tipas, Taguig CityTel. No. +63 (2) 640 5480E-mail:[email protected] Arnaldo A. del RosarioProvincial DirectorDTI-NCR Area II2/F Atrium of Makati Bldg., Makati Ave. cor. Paseo de Roxas, Makati CityTel. No. +63 (2) 501-5135 Ma. Theresa Pelayo-TyAssistant Secretary, NCR/RODG12/F Trafalgar Plaza , 105 H.V. Dela Costa Street ,Salcedo Village , Makati City Tel. No. +63 (2) 811-8231

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NCR

he aromatic Arabica coffee variety are known to grow in the upland provinces like Benquet, Ifugao, and Mountain Province while Robusta and Excelsa varieties are grown abundantly in low lying areas of Kalinga and

Apayao.

As an enterprise, Our Tribe Food Products also provides coffee processing and marketing services to local farmers relieving them the usual burden of traveling to neighboring provinces to sell their produce.

Our Tribe Food Products Tabuk City, Kalinga




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In a city cradled by the mountains, river, and plains, a popular beverage is concocted from carefully-blended organically-grown

Arabica, Excelsa, and Robusta coffee beans from the fertile mountains of the province. Our Tribe Food Products and its partners,

the Kalinga’s coffee farmers, fiercely slug it out in the competition.

By Joel Arthur Tibaldo

imple pleasures in life like engaging in conversation with friends while sipping hot coffee can be as relaxing and stimulating be it inside the comforts of air conditioned cafés in the metropolis or in remote gathering places in the countryside. For a mountainous region known for its cool climate and rugged terrain, coffee drinking has become part of the culture and way of life of many hardworking people in the Cordillera. Traditionally, elders and tribal folks gather around village halls called “dap-ay” to discuss domestic concerns. The stimulating effect of coffee, as commonly observed by many, may have kept these locals sharp and decisive in making important decisions in the village.

Kalinga Blend blazes the trails

As the reinvigorating drink continues to flow and the cashier’s counters continue to ring, Kalinga Blend, a ground premium coffee blend from the upland of northern Philippines enters the scene, its trails blazing as an alternative to the existing commercially packed coffee. Our Tribe Food Products, a DTI registered enterprise based in Tabuk City in Province of Kalinga manufactures the Kalinga Blend which consists of roasted, ground, and blended Arabica, Excelsa and Robusta coffee.The Kalinga Blend Premium Ground Coffee pack comes with a combination of the three organically grown coffee varieties grown in the fertile mountains of the province.

Grace Agtina (left) at the Our Tribe Food Products booth.



Entrepreneur Grace Bangsoy Agtina, a graduate of business administration, believed that she can find her niche in the coffee industry amidst the tough competition. And thus, she invested in coffee processing and aquired equipments, packaging materials, and chose her own province as a place to start with. Grace, as she is known by friends, draws roots from the Bago tribe of northern Luzon. She spent her early years in grade school near their residence in Barangay Cabaruan in Northern Tabuk often noticing pupils cross a river on foot to go to school. When her father resigned as chief mechanic in a government department in the 70s, he concentrated on tilling their farm so they can all pursue college education. Agtina’s passion and involvement in business started at a young age after finishing her studies when she set up her own enterprise in 1988, the Cabaruan Agricultural Supply Store. Agtina sold agricultural inputs like fertilizers and pesticides including coffee and legumes to a community associated with farming. Her regular dealings with the coffee growers gave her an idea and firmed up her business concept of coffee processing. Agtina believed that coffee processing is ideal to her province since Kalinga has vast plantations of coffee that benefits outside traders to a certain profit compared to the farmers themselves. Noting the profiteering practice of middlemen who buys and sells coffee to multi-national companies and the difficulty of growers in getting the fair market value of their produce, Agtina joined an advocacy program initiated by the DTI for value-adding and processing as a self-help engagement.

Getting help

To keep up with the demands of her growing enterprise, Agtina at first requested the use of an

idle coffee roasting machine owned by the Local Government of Tabuk through the intervention of the DTI-Kalinga and this saved her from a much needed capital expense. Agtina’s initial operation using the borrowed coffee roasting machine was facilitated by the Department of Science and Technology thus helping her push through with the processing of roasted coffee that made her beat the 2007 product launching. The DTI provincial office in Kalinga with the support of the regional office based in Baguio City also helped promote and facilitate the marketing of Kalinga Blend as it did with other coffee products such as the Kalinga Brew, Terraces Brew, and Sagada Coffee in local and regional trade fairs like the IMPAKABSAT.Through continued partnerships with the business sector and constant interaction with coffee growers, farmers and other stakeholders, Agtina is optimistic that the coffee industry in Kalinga can equal, if not surpass, Batangas Province as the top coffee producer and lay claim as the Arabica coffee capital of the Philippines. The aromatic Arabica coffee variety are known to grow in the upland provinces like Benquet, Ifugao, and Mountain Province while Robusta and Excelsa varieties are grown abundantly in low lying areas of Kalinga and Apayao. Boxes of Kalinga Blend premium ground coffee are now packed in airtight tin foils and are available in selected outlets and local coffee shops. When asked what made her choose to engage in coffee business, Agtina was quick in saying, “Coffee is a drink that can warm you, get ideas flowing and give you a sense of security. It is invigorating in the morning, a friend in the afternoon, and is a peaceful way to end your day.” The phrase printed in her firm’s product packaging also became the guiding principle of Kalinga Blend.



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Since Coffee is the identified regional model OTOP of the Cordillera, the DTI has been promoting said product since 2006 not only through fairs and market encounters but also in its promotional collaterals and website like the www.otopphilippines.gov.ph. A boost to Agtina’s enterprise was when Kalinga Blend received an award as 2nd Most Outstanding MSME during the 1st OTOP Regional Congress held in Baguio City in September 2009. Kalinga Blend as an enterprise also provides coffee processing and marketing services to farmers in the province so that they will be relieved from the usual burden of going to the neighboring provinces of Cagayan and Isabela to sell their produce. Today, Kalinga Blend produces about 4000 packs of 400gms and 200gms content per pack of roasted ground coffee per month with its already mechanized production operation. It now employs six full-time workers and two part-time students.

Expanding business

In 2008, Agtina relocated her coffee processing plant from her house vicinity at Dagupan Centro to a wider space at San Juan in Tabuk City. The entrepreneur also put up a hotel registered as Golden Berries Hotel and a Convention Center which became fully operational in 2009. Making sure that her coffee factory complies with the standards of BFAD, Agtina

acquired her BFAD License to Operate in 2009 making her product eligible to be sold in department stores nationwide. Agtina’s coffee venture initially generated a total sale of about P2-M in her start-up year and projects to reach the P3-M mark for 2009 and 2010. Today, the Golden Berries Hotel and Convention Center has become a one-stop-shop for travelers, visitors and buyers, for their billeting and souvenirs-pasalubong needs, including products from other Kalinga producers. For as long as entrepreneurs like Grace keeps their momentum up and coming exploring every possibilities for improvement like the mushrooming coffee shops, and for as long as coffee drinks continue to douse people’s thirst and perk up dull moments, the next business move perhaps will bring the coffee blend to the peaks above the competition. And who knows, Grace Bangsoy Agtina’s next appearance in popular media may perhaps feature her as one of the Philippines’ top executives.

OUR TRIBE Food ProductsGolden Berries Hotel,

San Juan, Tabuk City, KalingaEmail: [email protected]

Contact: +63915 8444119

Kalinga Blend Coffee Products are also available at grocery stores in Tabuk; Brixton Mall in

Tuguegarao; Golden Berries Hotel & Convention Center in Tabuk City; Kalinga Ethnic Botique; Trinoma in Quezon City; Souvenir Item stalls at Aritao and Santa Fe Nueva Viscaya; Power

Mall, Roxas; Maritoni’s Supermart, Tuguegarao City; Sta. Ana, Cagayan; Tuguegarao Airport

Pasalubong Center; OTOP – Pasalubong Center, Baguio City; OTOP- Pasalubong Center, Tabuk City.

DTI – Cordillera Administrative RegionMyrna P. Pablo, Regional Director

Jesnor Building, 4 Cariño St., Baguio CityPhone : +63 (74) 442.1326/442.8634

E-mail : [email protected]

DTI Kalinga Provincial OfficeGrace F. Baluyan, Provincial Director

2F Lua Annex Building, Poblacion, Tabuk, KalingaPhone: +63 (74) 423.0748

E-mail : [email protected]






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Region 1

One of the attributes that made the company successful in its processed food undertaking is the quality of its raw material. It only processes bonuan bangus grown in its own fishponds which are completely free from toxic chemicals and impurities.




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ho can forget the devastating earthquake of July 1990 that severely razed the island of Luzon and claimed not less than 1,500 lives? The 7.8 magnitude tremor that wrecked most of Northern Luzon also badly damaged the Dagupan–San Fabian–Mangaldan, the habitat of the Integrated Prawn Farms, Inc. It was in September 1987 that an intensive grow-out prawn farm located in a 25-hectare farm in San Fabian, Pangasinan was established, the Integrated

Not even the most severe earthquake in decades can ruin the spirit of an aquatic business owners. With the prawn farms almost ravaged to the ground, the business resurrected embracing its

indigenous product, the bonuan bangus. Today, Anjo Farms continues to expand its hold not only locally but in the global market as well.

By Amelia E. Galvez and Ramil T. Avelino

Prawn Farms, Inc., a corporation put up by the Tanjangco family. The prawn farm was completely constructed in 1989 and started commercial production in January 1990. This was also the period when fishpond operations and prawn farming proliferated in Pangasinan. And on July 16, 1990, an excruciating earthquake registering almost 8 on the Richter scale struck Luzon severely damaging most, if not all, of these aquatic business.


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Not shaken by this turn of events, the owner of the prawn farms aggressively pursued the restoration of the business even if it meant having to secure a P10-M loan from the BPI Agricultural Development Bank. Having fully restored and rehabilitated, the owners realized that there were already many prawn farms operating in the country, they decided to concentrate on milkfish (bangus) farming. They recognized that the Bonuan Bangus, indigenous to their area of operation, was getting very popular not only in the country but also in the different parts of the world as well.

The birth of Anjo Farms

As part of its diversification strategy, the business changed its corporate name from Integrated Prawn Farms, Inc. to Anjo Farms, Inc., amended its corporate primary purpose, increased its authorized capital stock, and acquired adjacent lots to increase its fishpond area. From purely milkfish production, the company ventured into value added agricultural products in October 1997 to take advantage of the huge local and foreign demands for processed foods. To accomplish this, it constructed its processing plant at a nearby area where its fishponds were located. The company’s first processed product was the boneless bonuan bangus which was marketed under the trade name “Pangasinan’s Best Boneless Bangus.” Due to continuous product research and development activities, the boneless bonuan bangus had expanded into seven varieties. These are the plain boneless bangus, marinated (daing) boneless bangus, smoked (tinapa), lumpiang shanghai bangus, longanizang bangus, bangus fillet, and bangus belly. The most recent additional product lines are the microwaveable bangus sisig, spring roll, sausage, teriyaki, and adobo. One of the attributes that makes the company successful in its processed food undertaking is the quality of its raw material. The company puts so much importance on quality by using only the bonuan bangus, which are grown in its own fishponds. This way the company is assured that the bangus it uses are completely free from toxic chemicals and impurities. Furthermore, to make sure that its products are prepared, processed, and handled at all times in a hygienic and sanitary manner, the company implemented a comprehensive hazard analysis critical control program for its operations (from the growing of milkfish to harvesting, deboning, packaging, storage and final delivery to customers). It, likewise,

invested in various processing and storage facilities, such as vacuum sealers and blast freezers, to ensure the superior quality of its products.

Going international Due to limited resources, marketing and promotion of Anjo Farms’ products were initially limited to participation in local trade fairs and the endorsement of satisfied customers. The National Trade Fair (NTF), under the auspices of the DTI, was the first venue where the products were showcased and promoted. The company first joined the NTF in 1999 and became a regular participant until 2004. Then, they began participating in the International Food Exhibition (IFEX), also organized by DTI – Center for International Trade Exposition and Mission (CITEM), which the company participated from 2004 onwards. While these efforts were admittedly limited in scope and opportunity, they had, nonetheless, produced excellent results. For one, contacts were established with buyers of foreign companies, as well as local institutions. Consequently, having maintained the quality of its processed products coupled with hard work and patience of its marketing people, negotiations bore positive outcomes through its first exports to Hongkong, Macau, and Lantau in 2000. This was followed in July 2001 with exports to the United States of America (West Coast and Hawaii). The consistent high quality of its products and the satisfaction of its customers have resulted in the growth and expansion of its export transactions. Now, the company is exporting to Australia, Canada, Sweden and more recently, to the United Arab Emirates. Anjo Farms, Inc. was able to penetrate the Arabian region because it passed the standards of Halal accreditation and received its certificate from the Office of Muslim Affairs. Currently, the company is exporting to ten foreign countries and supplying ten supermarkets and 21 institutional clients (with several branches nationwide) in Metro Manila.

Giving back Anjo Farms was greatly inspired by the old Filipino adage, “Ang hindi marunong lumingon sa pinanggalingan ay hindi makakarating sa kanyang paroroonan.” It had always been the company’s policy to give priority to the residents of San Fabian in their recruitment activities, especially in the processing plant. The company presently employs a total of 135 workers in the plant, 115 (85%) of which are locals of San Fabian. This is in line with the company’s




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commitment to provide employment in the locality and, at the same time, equipping or enhancing these people with the necessary skills. The company also sponsors various projects and activities initiated by the LGU and private organizations and are geared towards the development and improvement of the locality and its residents. This is why in 2006, the LGU – San Fabian proudly nominated Anjo Farms in the Search for Most Outstanding Entrepreneurs in Region 1, which was organized by the Regional Development Council. The company was adjudged regional winner in manufacturing.

Milestones The success and valuable contributions of the company to the growth and development of the region did not go unnoticed by various sectors. The following are some of the significant awards and citations received by the company:

2002 & 2006 – Citation for Exceptional Performance in Milkfish Processing by the Provincial Government, DTI and Pangasinan Development and Productivity Foundation, Inc. (PEDPFI); Rising Star Citation in the 16th Golden Shell Awards for Excellence in Exports

2003 – Awarded Outstanding Achievement on Productivity and Quality by the Employers Confederation of the Philippines

2004 – Regional and National Awardee of the 1st Business Excellence Award for SMEs given by the Small Business Corporation and Philippine SMED Foundation

2005 – Plaque of Recognition for Remarkable Growth and Improvement in Business Performance by the DTI & SMED Council

2006 – The only milkfish processing plant accredited to export in Europe by the Bureau of Fisheries and Aquatic Resources; Regional Awardee of the Search for Most Outstanding Entrepreneurs in Region 1 (Manufacturing Sector) given by the RDC - 1

Commitment to quality and sustainability

Anjo Farms Inc. remains steadfast in its commitment to produce the highest quality processed bangus products at the most reasonable prices. It continues to invest in the modernization of its facilities and enhancement of its workforce’s capabilities in order to reduce costs whenever and wherever possible while remaining competitive in the face of increased competition and the present trend towards globalization. In support of this objective, the Department of Agriculture under the Agricultural Competitiveness Enhancement Fund awarded the company with a Php12-M interest-free loan to fund the expansion of its processing plant from a capacity of 1,000 kg to 3,000 kg per day. This move allowed the company to come out with consistent world-class quality products at more reasonable prices to better compete in today’s global market. DTI, which helped the company with the required feasibility study in order to obtain the grant, believes that sustaining the development of the company requires quality products and proactive marketing approaches, especially with regard to exporting.More recently, the company, through the endorsement of DTI, participated in the BETP/SBMA-organized trade mission to the mainland USA and was able to establish contacts with a number of American food importers, particularly with COSTCP and Seafoods City. Negotiations with Seafoods City are currently on-going for the exportation of 18 40-foot containers of microwaveable bangus products in three variants worth US$ 24-M.


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OTOP Program The company recognizes the assistance provided by the various OTOP key implementing agencies. The convergence of support extended to the company has greatly improved its processes, which brought a lot of positive outcomes. Through the marketing assistance, consultancy services and training programs provided by DTI, the company was able to expand its domestic and export markets; enhance the managerial and entrepreneurial skills of its officers and staff; bring about enhanced productivity of its workers; and facilitate the company’s compliance with standards requirements and Halal accreditation. These food accreditations received by the company are an important component of the company’s export ventures because these are assurance of food quality and safety. DA, for its part, extended financial assistance to the company thru the ACEF Program to finance the expansion of its processing plant to be able to meet its export orders. DOST, on the other hand, provided technological assistance, most notable of which is the waste extractor machine for the waste materials from processing bangus.

Anjo FarmsAlbert Stephen Q. TanjangcoPresident and General Manager

Office:1610 –A Singalong St., Paco ManilaTel. Nos. +63 (2) 523-5155; 526-7612; 523-7277Fax No. +63 (2) 523- 5148

Farm and PlantBrgy. Sabangan-Nibaliw Narvarte, San Fabian, PangasinanTel No. +63 (75) 511-3125

Peter O. Mangabat, Provincial DirectorDTI – Pangasinan, 2F Star Bldg.Arellano St., Dagupan City+63 (75) 515-3183Email: [email protected]

Florante O. Leal, Regional DirectorDTI – Region 1, 4F Juanita Commercial Bldg.Quezon Avenue, San Fernando City, La Union+63 (72) 700-1024; (072) 242-48-64Email: [email protected]

Government partner As one of the active players in the bangus industry, Anjo Farms participated in the government’s efforts toward developing the industry and advancing the interests and state of the industry’s stakeholders. The company provides relevant data and information, shares its best practices, and, when necessary, pushes for policy enactments. It likewise spearheaded the organization of the 1st and 2nd Bangus Festival in Dagupan, which had been institutionalized yearly as a promotional activity for bangus. It was during this festival where the longest grill (of bangus) was recorded in the Guiness Book of World Records. SME promotion is a very effective tool in achieving national development. One successful SME means several jobs created to contribute to the robust economic activity of the country. But this program needs SME partners who are dedicated, competent, sustainable and resilient. Anjo Farms, through its bangus production, has proven to be effective partner in national development. But just like the bangus continuing its journey around the world through more export destinations, the work to promote entrepreneurship is also a continuing saga for DTI.




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The National Economic Research and Business Assistance or NERBAC is an Express Business Center, single entry point for investors and businesspeople.

NERBAC in Cebu currently houses the BIR, DTI, SSS, PhilHealth, Pag-IBIG, and the Cebu City government.

Open daily from 8:00 a.m. to 5:00 p.m. except weekends and holidays.

C U T T I N G R E D T A P E , B O O S T I N G B U S I N E S S

Business permits and licenses • Business name registrationInformation for investors • Investments procedures, incentives, and assistance

NERBAC Cebu contact details:

Ground Floor, LDM building along Lapu-Lapu Street, Cebu CityTel. nos. 255-691 / 255-3926 / 412-1944 / 412-1945

National Economic Research and Business Assistance Center in Cebu


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Region 2

NM Carag Furniture and WoodcraftBaggao, Cagayan

he partnership with DTI allowed her business to expand to places she never would have imagined. Deeply passionate about her work, widow Nenita M. Carag lives by what she believes: The sun shines on both the poor and the rich. Blessings she receives are blessings she shares with her people in the workplace, saying that her business would not have made it without her faithful and diligent workers.

A grieving widow found a chance to rebuild and improve her life turning a small backyard business into a million-peso enterprise.

By Zenaida M. Quinto


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hat a man can do, a woman can, too.” This adage becomes especially true when a housewife is left alone to continue what her

husband had started. Nenita M. Carag, owner and manager of N. M. Carag Furniture and Woodcraft, at first felt her world crumbling down when her husband passed away 12 years ago, leaving her alone to take care of their two young sons – 15 and 14 years old at the time – and their family furniture business. But she found the strength to single-handedly raise her sons and turn their humble furniture business into a million-peso enterprise.

Sari-sari store to backyard furniture business

Prior to the furniture business, Nenita, a business graduate, used to tend a sari-sari store, while her husband, an undergraduate, worked as a security guard. These sources of income could hardly meet the family’s growing needs, especially since the children had already started schooling. So, her husband decided to try his luck in the furniture industry when he learned that a few of his town mates were doing well in the business. Reluctantly, she gave up her sari-sari store. She sold literally everything that she had in the store, although the sales were hardly enough to cover the initial capital for a furniture shop. This did not discourage Nenita’s husband to go on with his newly found passion. He started the business in 1990 with barely fifty thousand pesos.

Nenita’s husband was a simple man with simpledreams.He never conveyed any thoughts of expanding the business. In fact, he was contented with borrowing materials and equipment from nearby furniture shop owners for a while. Meanwhile, Nenita comfortably filled the role of a full-time housewife. Her husband managed to steady the reins of their family backyard business, which he operated alone for some time before he got himself some helpers. He initially delivered his rough products to Manila, hitching rides with fellow furniture owners since he did not have his own transportation. Patience indeed pays. Five years later, the small business grew in assets worth P300,000. From a distance, Nenita quietly admired her husband’s simplicity and determination contentedly working at his shop as she fulfilled her role as wife, mother, and housekeeper. It did not take long for Nenita and her family to get used to the new setup – a setup that she never thought would only last for eight short years when her husband died of cardiac arrest in 1998.

The housewife becomes an entrepreneur

Nenita was caught unprepared for her husband’s sudden demise. The dual role of father and mother to their children was tough enough, but to run a business that she never had any participation since the beginning was unimaginable for the new widow. Her husband used to take care of everything with regard to their business – from raw materials procurement to production, marketing, and financial management. Learning to take on these tasks in a very short time is challenging enough, especially since she had always thought that the furniture industry is a man’s world. She shuddered at the thought of ever continuing the business. But the business was the only thing left by her dear husband… and it was really their only source of income. She soon realized that all these thoughts of being unknowledgeable and inexperienced, and therefore

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Mrs. Nenita M. Carag (Left) consults with Josie Balisi of DTI-Cagayan and Mr. Rowie Requijo of PDDCP in her shop.



incapable of doing it, were just false assumptions. She took everything as a challenge and started to study the rudiments of the industry. She did this while attending to her daily domestic chores and her children’s needs at home and in school. She always reminded herself that everything can be learned if only one invests time and patience. Her resilience and determination to carry on with life and their business without her husband conquered her fears and insecurities. She was inspired by the thought that her husband would surely be happy and proud if the furniture business that he nurtured and invested with sweat, tears and blood would one day create a name for itself. She also kept reminding herself of her two sons, who were in high school by then, and their future. Patiently, she took the reins of the business. She persisted until she eventually mastered the skills in every aspect of the industry – from procurement of raw materials, to processing (carving, assembly and design), marketing and financial management.

Heaven-sent DTI

On the onset, Nenita’s furniture were rather heavily carved. She thought about ways to produce finer finish products that would attract more customers to make her business become more competitive. The answer to her prayers came in 2000 when Municipal Trade and Industry Officer Josie Balisi, from the DTI – Cagayan provincial office, visited her in the shop and proposed some assistance that the agency was providing entrepreneurs. Nenita did not have second thoughts. She grabbed the opportunity and quickly responded to the invitation to participate in DTI’s product development program. A one-on-one consultation with a designer from the Product Designs and Development Center of the Philippines (PDDCP) was arranged. The insights she gained and the unique and beautiful designs to which she was introduced raised her enthusiasm to greater heights. The trainer introduced a set of “book-inspired” hand carved chest table with antique finish and an upholstered chair with minimal carvings. At first, she thought that adopting these designs was a rather bold move. According to her, they were distinctly different from her company’s designs. Nonetheless, she gave it a try. That same year, she displayed the item at the first national trade fair in Manila, the first trade fair she participated in through the invitation of DTI. Her book-inspired hand

carved chest table with antique finish and upholstered chair won the best selling prototype award! The award inspired her all the more and her passion for the industry grew more tremendously. From then on, Nenita developed new product lines, incorporating the book-inspired designs, such as bar counters, console tables, bachelor’s chest cabinet, study tables and others. In the succeeding years, these unique designs became best sellers during national trade fairs, OTOP Luzon Island Fairs, and regional trade fairs to which she had been introduced and later religiously participated in. She applied every knowledge and skill she acquired from the initial training and consultation with PDDCP and from the succeeding product development trainings she attended. She kept

improving her craft, investing in what she thought was the strength of her company – wood

carvings. Nenita has since mastered her craft, fully

engaging herself in improving the quality of her products and developing new artistic and unique designs to be able to keep pace with the trends and preferences

of buyers. Aside from constantly consulting with the PDDCP designers, she also comes out with

her own designs, which have been proven acceptable to the market. In fact, she has helped designers conceptualize new designs based on her inputs and suggestions.

Magic of trade fairs

Aside from product development assistance, DTI helped Nenita to expand her

market through her exposures in regional and


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national trade fairs. To date, N. M. Carag Furniture and Woodcraft is not only catering to local end-users, but also to institutional buyers, wholesalers, and retailers. She has expanded her market from Cagayan Province to the whole of Region 2, then to the National Capital Region, and now, to the Cordillera region, Regions 1 to 4, Cebu City, Davao City and Zamboanga City. The partnership with DTI allowed her business to expand to places she never would have imagined. The establishment of showrooms and display centers in strategic locations in the Philippines has likewise introduced the company to a wider market. Some of her products have, in fact, reached Canada, Italy, Australia and Japan through balikbayans, overseas Filipinos, and middlemen. With continued support from DTI, Nenita’s business is sure to create a niche in the foreign market. The growth of the business is evident on the steady increase in sales and productivity through the years, which Nenita attributes to her innovative marketing techniques and improved production. In a three-year period since 2005, sales doubled to more than three million pesos. An exceptional manager, she has invested most of her income in real properties, additional woodworking equipment and transportation units, thus evidently increasing her personal and business assets from P300,000 to more than ten-fold in a ten-year period.Since its establishment in 1990, the company has contributed to employment generation in the community. It is now maintaining 55 workers - 25 regular and 30 indirect. Its production capacity is 25 sala sets a month and 300 pieces of wood bits variety using Gmelina and other wood species available in the region. At the rate the company is growing, more jobs are likely to be created.

Hard work and rewards Nenita’s husband must surely be proud of her when the Municipality of Baggao, Cagayan

was recognized as a “source of quality furniture” because of her company. Nenita Carag has brought numerous laurels to her company as a result of her craftsmanship, hard work, and aspirations to excel in her craft. Since 2000, her company has accumulated national commendations, nominations and awards, such as:

“Best Selling Prototype Award” - National Trade Fair 2000 and 2002; “Best Dressed Booth Award” - 2003 AggaoNac Cagayan Festival and 2005 Panagsangal Festival; “Outstanding SME” - during the Tribute to Entrepinoy, SME Month Celebration, July 2004; “Top Grosser Award” - National Trade Fair 2003 and 2004; “Regional Winner” - 3rd Business Excellence Award for SMEs, October 6,2006; “Highest Sales Award” - OTOP Luzon Island Fair, August 12, 2007; “NTF 2009 GinintuangYaman Award” - March 14, 2009; and, “Most Innovative Product Award” - October, 2009 Regional OTOP Congress.

According to the DTI staff, trainers, design experts and the laborers who had the chance to work with this mighty widow, it is not surprising that she has reaped success. Her passion for her work is deeply entrenched. She sees to it that she puts her hands on the hammer and chisel before her laborers do when a new design is being introduced. In other words, she trains to train her workers. She has never declined any invitation to attend seminars and trainings. And during these trainings and seminars, she has been exceptionally receptive. She, however, does not content herself with what is being presented to her. Instead, she inputs her own innovative ideas into what has been introduced; she modifies and improves suggested designs. Her workers have only good words for her. She lives by what she believes: the sun shines on both the poor and the rich. She does not keep the

Mr. Rowie Requijo proposes a set of “book-inspired” designs to Mrs. Carag during their one-on-one consultation.



N. M. Carag Furniture and Woodcraft Nenita M. Carag, Owner/ManagerHerrero St., San Jose, Baggao, CagayanTelefax. No.: c/o DTI-Cagayan +63 (78) 846-1628Cellphone No.: +639206397588E-mail Address: [email protected]

DTI-Cagayan Provincial OfficeEngr. Bernardino G. MabborangProvincial DirectorDurian Bldg., San Gabriel VillageTuguegarao City 3500Telefax No.: +63 (78) 846-1628E-mail Address: [email protected]

DTI-Region 2 Atty. Ma. Esperanza C. BañaresRegional DirectorRegional Government Center (RGC)Carig Sur, Tuguegarao CityTel. No.: +63 (78) 846-2370Telefax: +63 (78) 846-4637E-mail Address: [email protected]

blessings that she is reaping for herself alone, but shares every bit of it to her workmen. According to her, she would not be where she is now without the faithful and diligent workers she has around her. She teaches by example and applies this not only to her workers, but to her now grown-up children as well. She now shares the management of their business with her older son, an accountant, who does the bookkeeping, and her younger son, who takes care of the delivery of products to customers ensuring that orders are delivered on time. Work schedules are on a weekly basis, with her two children and her head carpenter participating in the planning. Procurement of raw materials, on the other hand, is on a monthly basis. Through her enduring labor, resilience, unique management style and value-laden personality, this woman has singlehandedly transformed their family backyard business into a successful enterprise. “What a man can do, a woman can, too.” The success of this mighty widow’s enterprise provides a loud and clear proof.




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Region 3

Kababaihang Masigla ng Nueva EcijaQuezon, Nueva Ecija

By Ma. Odessa R. Manzano and Richard V. Simangan

he summer heat makes for luscious, plump, and juicy tomatoes but also hastens the ripening of this fruit inevitably creating huge waste in time of abundance. That waste inspired a group of women to come up with value-laden ideas to a simple but basic kitchen fare. Who would

have thought that the lowly tomato could be eaten as a dessert?




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Tomatoes everywhere These rich farmlands devoted to producing tomatoes during palay off-season is billed as the Gintong Ani agrarian reform community, a place where various fruits like tamarind, guava, kamias, and karamuy are also abundant when in season. This farmland located in the heart of the municipality of Quezon in Nueva Ecija is also home to the Kababaihang Masigla ng Nueva Ecija (KMNE), producer of healthy foods. In those days, one could buy tomatoes for a steal during summer when the fields and markets were flooded with it. The summer heat makes for luscious, plump, and juicy tomatoes. It is also the summer heat that hastens the ripening of this fruit inevitably forcing farmers and vendors to throw away rotting and unsold tomatoes. This has become a big challenge for farmers and traders as their money is tied with their produce. This wasteful treatment of an agricultural produce inspired the Kababaihan to come up with value-laden ideas to a simple but basic kitchen fare. The Kababaihan’s initial step was to transform the lowly tomato into a sweet and sinful dessert by preserving it. That huge interest in tomato processing has become the saving grace of

farmers. Since the women’s group needed at least 5,000 kilos of tomatoes for production yearly, the prospect of having rotting and thrown tomatoes had become a thing of the past. The Apollo variety, half ripe, which is fleshy and juicy, is the top choice as raw material for the sweet tomatoes. And then came the dried tomatoes in olive oil.

The advocacy Health wise, raw tomato is a great source of vitamins A, C, and E, beta-carotene, and natural fiber. In its processed form, it becomes a rich source of lycopene, potassium, magnesium, minerals, and other essential vitamins. From these health facts, KMNE anchored its market position statement, “ Go back to the basics and go natural” for their product line, the Masigla Food Products. Vilma B. Joson, the president of KMNE, together with retired teachers and housewives, began organizing the association in 2000. The main goal then was to provide a livelihood program for farmers’ wives. Joson said, she wanted women to become productive and “gain their true self-worth.” In this time when lifestyles have totally changed, Joson often advises these women to take a proactive stand by doing something good for their families, the community, and the country.

Ms. Vilma B. Joson (Left) supervises the processing of tomatoes.



The big partners Seeing the business potentials and believing in the principles that KMNE embraces, government agencies began to see the inspiration and offered to extend various assistance to the association. TESDA provided them an initial capital of P50,000 in 2001. The provincial government of Nueva Ecija, for its part, also gave them P300,000 which was used to put up the food processing plant and training center. The Philippine Center for Postharvest Development and Mechanization also presented them with a multi-commodity solar tunnel dryer as an alternative to sun-drying on pavements. Meanwhile, the DTI, under the support services of the Comprehensive Agrarian Reform Program extended technical assistance in terms of project proposal preparation, market development assistance through product development and packaging, direct market linkages, and trade fair participation. It was through the submission of a project proposal packaged by the DTI that KMNE was able to get a grant of one million pesos under the Poverty Alleviation Fund of the Department of Labor and Employment in 2004. This amount was used in the marketing and promotion, product development activities, and conduct of capability building seminars under the supervision of DOLE and the technical assistance from DTI. A private entity, the Foundation of Masons, also helped the group acquire the equipment they needed.

And now, the product lines With the help of a marketing consultant from the DTI under its OTOP Marketing Program, KMNE’s product lines increased and expanded to other agri products than tomatoes and categorized into: 1) Pagkaing Masigla or Healthy Foods (sweet tomato, tomato jelly,

sweet tamarind, guava jelly, karamuy and tilanggit) 2. Inuming Masigla or Healthy Drinks (Tamarind juice, rice coffee, ginger tea), and 3. Panimplang Masigla or Healthy Mix (powdered mushroom, powdered guava, powdered tamarind, dried tomato in olive oil). Through this product grouping, KMNE was able to define its market direction and outlined its product focus. “Our big thanks to the DTI-Nueva Ecija for including us in their priority SMEs to be assisted and for introducing us to the One Town One Product (OTOP) Program,” exclaimed Joson.

Generating jobs The weekly production needs hundreds of kilos of fresh raw materials. The children in the community have found a sure source for their baon by selling the just harvested guavas, kamias, and tamarind directly to the KMNE. The KMNE supports them by giving outright cash for their produce. Not only does this act relieve parents of financial burden, the simple transaction helps the children realize the value of hard work and money, and hopefully lead


A great source of vitamins A, C, and E, beta-carotene, and natural fiber, the processed tomato is also a rich source of lycopene, potassium, magnesium, minerals, and other

essential vitamins. “Go back to the basics and go natural” is Masigla Food Products’ marketing advocacy.


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them into becoming entrepreneurs themselves. A hundred people who work as production workers, suppliers, on-call workforce, mall-based merchandisers, and retailers, benefit from KMNE in terms of jobs and income generation.

Marketing stand KMNE takes a pro-active stand when it comes to marketing and promotion. Its main marketing outlet is located right in the center of its processing plant in Ilog Baliwag in Quezon. As of mid 2009, their products have already become available in a number of Nueva Ecija supermarkets, Pasalubong stores in Cabanatuan City, and an estimated 10 outlets in Metro Manila that includes the SM Kultura Shops at SM Makati, SM Fairview, World of Wellness (Cory Quirino), Echo Store at Global City, The Village Pantry, Quick Gourmet (in QC), Caring Enterprises (in QC), Tindahang Bayan ni Louie Tabing (QC), Cubao Expo, Muang Thai Restaurant(QC), Serendra, and three Robinson’s supermarkets through the TLF Foods Distributor. Joson revealed that through their market outlets and exposures to various trade fairs such as the Food Expo, OTOP Luzon Island Fair, and Likha ng Central Luzon Regional Trade Fair, their products have been exposed to a wide range of customers and had given them free, invaluable advertising.

As OTOP SME In 2006, the local government unit of Quezon officially enrolled processed fruits and vegetables as its OTOP. Within nine years of its establishment, KMNE was awarded Best OTOP SME during the Nueva Ecija Provincial OTOP Congress and Awarding. Joson said that being the Best OTOP SME Awardee for 2009 was a huge windfall from God and an honor. She added that the award

will be their passport in reaching more markets in the coming years whether here or abroad.While KMNE revels in its secret for success, sipag at tiyaga (diligence and perseverance), it also claims that government agencies, notably the DTI, motivated them to pursue product excellence, be open to changes, and value and listen to feedbacks. These days the women of KMNE are into developing new products without the preservatives and in due time, hopes to penetrate the export market.

Kababaihang Masigla ng Nueva Ecija Vilma B. Joson, President

Brgy. Ilog Baliwag, Quezon, Nueva EcijaTelefax. No.: c/o DTI-Nueva Ecija

+ 63 (44) 463.8296Cellphone No.: +63917.8061211

Website: www.masiglaproducts.comE-mail Address: [email protected]

[email protected]

DTI-Nueva Ecija Provincial OfficeBrigida T. Pili, Provincial Director

2nd Floor, CAL Building, General Tinio St., Barangay Dimasalang, Cabanatuan City

3100 Nueva EcijaTelefax No.: +63 (44) 463.8296

E-mail Address: [email protected]

DTI-Region IIIBlesila A. Lantayona, Regional Director

2nd Floor, Angeles Business CenterTeresa Avenue, Nepomart Complex

Angeles CityTel. No.: +63 (45) 625.9290Telefax: +63 (45) 625.9607




CALABARZON



By Marcelina B. Alcantara and Carlos S. Dajao


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pecial line of products are now sold at the “Kultura”

section of SM Department Stores; in Festival Mall in

Alabang, Muntinlupa City; and in other boutiques and

gift shops in Metropolitan Manila. Best sellers are the

fashionable bags made of the enhanced ‘leatherlook’

pandan materials that are eco-friendly.

The Luisiana coop’s pandan products exemplify a unique blend

of aesthetic sense and utility reflecting the traditional excellence

of local craftsmen and weavers of a wide range of pandan-based

handicrafts.

Capturing a broader spectrum of customers - from middle

to high-end buyers by designing products that appeal to specific

market segments is an advantage LWMPC enjoys.


“Pandan Festival” photos by Sam Igloria



et organized! This could have been the battle cry of the pandan weavers from different communities in the upland municipality in Laguna. To rise above the competition,

organizing is the key! With the proper training, the weavers—now made stronger by the numbers and standing as one, are ready to compete. Luisiana’s pandan industry has many players, thus the competition is stiff. There is an unabated copying of designs among producers such that handicraft items becomes generic to all the producers instead of being distinct from one another resulting to price wars and unsatisfactory quality. Pandan-weaving started as a tradition and remained a mark of Luisiana’s culture. Pandan (Pandanus utilis), a palm-like evergreen tree is indigenous to and grows abundantly in Luisiana. Abundance of raw materials and availability of many highly-skilled weavers propelled pandan handicrafts to become the priority product and industry of Luisiana. Often growing as high as 20 meters, pandan has greatly contributed to the local economy by providing livelihood and employment at a relatively low investment. When the “One-Town One-Product” (OTOP) program was introduced in Luisiana, the association of weavers elevated into Luisiana Weavers Multi-Purpose Cooperative, or LWMPC. Registered in 2005, the 37-member cooperative, would support and sustain livelihood for the weavers by producing and selling pandan products. Jocelyn N. Solomon, a veteran trainer and consultant for the handicrafts industry, heads the cooperative as the chairman of the board.

Best practices LWMPC produces and sells pandan-made handicrafts sourcing materials from local pandan farmers and normally contracts out weaving jobs to

its members. Realizing the need for more weavers to cope with high volume orders, Ms. Solomon, or Josie, trained the housewives and the unemployed youth on weaving to build up a pool of highly skilled weavers to be tapped for large production requirements. During its early stage, the cooperative strived to establish its own display and sales center to showcase quality products to increase and sustain sales. The cooperative of weavers did not allow to be swallowed by the competition ruled by the unpleasant trend of copying and lowering price and quality. Instead, it competes by continuously developing new designs, improving quality, and devising sound pricing schemes. The Luisiana cooperative pays weavers on a volume or by-piece basis, instead of daily wages, that simplified operations thus reducing costs. The scheme also enhanced the development of process specialization for each subcontractor resulting to the higher quality output at faster turnover times. In effect, weaving subcontractors, having their own workshops and operating as independent entrepreneurs themselves, supply the needs of the cooperative as well as other customers.

LEAPing forward At the onset of the global financial crisis at the end of 2008, the DTI along with other government agencies devised programs to mitigate the effects of the mass displacement of industrial workers particularly in Laguna. Thus, the Laguna Emergency-Employment Accelerated Program, or LEAP, was set-up.


Pandan Festival in Luisiana showcases gowns made of pandan. Photo by Sam Igloria.


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The LEAP anchors on the utilization of water hyacinth to be used as fibrous material for woven items, and as green charcoal and organic fertilizer. The pro-environment move of the municipality Los Baños prohibiting the use of plastic bags in wet markets and supermarkets revived the use of bayong made of pandan, a biodegradable material. The DTI’s Bayong Development Project created along this environmental tune complemented the water hyacinth project.

The look of leather

As the bayong development project was mobilized, the cooperative was among those who were trained on bleaching, dyeing techniques, and color trends. It

eventually evolved into developing the “leatherized” material that resembles animal skins found to be a great material for bags, laptop cases, clutch bags, and even for gowns that have become popular for special events. Facilitated by DTI’s Laguna Provincial Office, the cooperative representatives participated in capability building seminars such as preparing business plans. The seminars were held with the assistance of the Canadian Executive Service Organization (CESO), a volunteer organization with commitment to DTI to assist micro-entrepreneurs in the Calabarzon Region. Through participation to exhibitions, festivals, and trade fairs organized or facilitated by DTI, products of the LWMPC were exposed to new and bigger buyers prompting increased sales. It is in trade fairs that the “leatherlook pandan bags” gained popularity from both the fashion world and advocates of the environment.LWMPC’s products exemplifies a unique blend of aesthetic sense and utility and reflects the traditional excellence of local craftsmen and weavers through a

wide range of pandan-based handicrafts whether for utility, decoration or novelty. Josie, having spent significant time experimenting and innovating on fiber, was able to enhance the characteristics of materials that would be crafted into a more sophisticated handicraft items.

Rising above the competition

LWMPC’s advantage over the competition is that they can capture a broader spectrum of customers - from middle to high-end buyers. This is made possible by designing and producing mats, furniture, household articles, novelty items and gowns that appeals to specific market segments resulting to increased sales. The cooperative continuously innovate its products through updating along with the new technologies and techniques through training and seminars. Further improving and developing the aesthetic properties of pandan make them more creatively eco-friendly thereby setting new trends in the market. LWMPC’s special line of products are now sold at the “Kultura” section of SM Department Stores; in Festival Mall in Alabang, Muntinlupa City; and in other boutiques and gift shops in Metropolitan Manila. Leading the list of best sellers are the fashionable bags made of the enhanced ‘leatherlook’ pandan materials that are eco-friendly. The regular bayong are also distributed to retail outlets in Calabarzon, Metro Manila and Northern Luzon.

Taking the prize For the last five years, LWMPC regularly participates in competitions on indigenous and innovative products. LWMPC’s novel designs of pandan gown and suit won the “Best Gown” and the



“Most Innovative Indigenous Material” awards. The cooperative also earned this year a Presidential Citation for the “Most Environment-Friendly OTOP Product – Bayong Category” during the 2nd National OTOP Congress at the Philippine Trade Training Center.

Upticking sales Last year, the group posted total domestic sales of P730,605 out of regular customers and in trade fairs and business matching events. LWMPC had its first experience in exporting when a ‘kababayan’ shop owner in Italy ordered pandan ladies bag valued at USD 2,720. Another order was a set of pandan articles to decorate a Filipino restaurant in the United States. Most often, the cooperative’s pandan bags are the best sellers as they are made as gifts or ‘pasalubong’ by Filipinos going abroad. Business has grown considerably. Aside from acquiring a delivery van, the manufacturing capability has been reinforced with several units of manual and high-speed sewing machines, other manufacturing equipment, and tools as well as office furniture and furnishing.

Moving forward The cooperative plans to move its production facility to a bigger site - a two-hectare area in the outskirts of Luisiana - to accommodate additional equipment. Dehumidifiers and other process tools are certain to increase production capacity and improve quality, efficiency, and productivity. By then, meeting bulk orders would not be a problem anymore. LWMPC will veer its sights out of retailing. Instead, it will focus more on meeting job orders of customized items and the requirements of the bulk buyers. Also, the firm would capitalize on the consumers’ increased support for eco-friendly products. Josie said that the strategy mainly considers products which go well with the international trends such as increased environmental awareness concerning the use of eco-friendly raw materials. Sudden climatic changes have also played their part in increasing environmental awareness over the last decade. “Luisiana has abundant raw materials that can be used to create unique products,” she said. “Handicrafts have continued to gain popularity and has thrived over the years, providing business opportunities and employment for many people.”“Creativity is universal, but the people are expected to discover their assets and promising characteristics of their culture, so that the same can be utilized for

Luisiana Weavers Multi-Purpose Cooperative

Jocelyn N. Solomon, Chairman of the BoardOffice and Shop: # 69 A. Bonifacio Street

Poblacion, Luisiana, Laguna+63 (49) 503.6278

Email: [email protected]

DTI-Laguna Provincial OfficeSusan R. Palo, Provincial DirectorVarimco Bldg., Brgy. Banca-banca

Victoria, Laguna+63 (49) 559.0254


DTI-Calabarzon RegionMarilou Quinco Toledo, Regional Director

3rd Flr., Marcelita Bldg.Brgy. Real, Calamba City

+63 (49) 545.6169; 545.7570Email: [email protected]

manufacturing unique handicraft products,” Josie said.Since the 19th century, the municipality of Luisiana has been known to be a pandan producer, but it was only a decade ago that a festival is to be celebrated for its significance and tradition. Annually and for thirteen years now, Luisiana’s Pandan Festival features all products made out of pandan leaves. The festival could also be a celebration of unequalled opportunities generously brought by the indigenous Luisiana green treasure growing in its very own soil.


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MIMAROPAMa

ma

syam

i De

li Fo

od

s, Ro

mb

lon

By Catalina Layni V. Olmos and Karen A. Invento



The delectable taste and appealing packaging

of the peanut butter elicited exciting

responses of satisfaction and, soon,

Mamasyami Deli Foods peanut butter

had a life of its own.

Almost immediately,

Ellen Muros faced

higher demand.


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llen Muros, the flourishing micro-entrepreneur behind the Mamasyami Deli Foods, had an ingenious approach to mainstream her peanut butter in the market by grabbing the opportunity that landed on her lap. She soon discovered that peanut butter could

truly be both her bread and butter.Ellen started selling products to augment the

family income by direct selling of apparel, cosmetics, shoes, and even plastic products. But her distributors could not pay their obligations leaving her indebted with a large sum of money.

That was when Ellen and husband Robert decided to leave the direct selling business and look for other opportunities. Robert urged Ellen to join the 7 Isles Progressive Entrepreneurs Multi Purpose Cooperative (PEMPC), a cooperative established through the help of Department of Trade and Industry – Romblon Provincial Office to assist budding micro-entrepreneurs of Odiongan, Romblon in product development and marketing.

At first, Ellen was undecided on the product she could sink her teeth into. Seeing that the cooperative offered peanut butter raw materials, including the packaging materials, her husband advised her to make peanut butter that could be sold in the local market at a lower cost. While the rest of the members of cooperative were hesitant to use the product labels worrying about additional cost, Ellen fearlessly used the labels, improved the packaging of her product, and made her peanut butter stood out among the rest.

The entrepreneurial spirit of Ellen soared high when the wife of former Congressman Eduardo Firmalo of Romblon bought several of her peanut butter products and gave them as gifts to her friends and colleagues. The delectable taste and appealing packaging of her peanut butter elicited exciting responses of satisfaction and, soon, her peanut butter had a life of its own evolving into a talked about food product of Romblon. Ellen was faced with higher demand almost immediately.

This multi-island province famously known for its huge marble deposits is also home to the tastiest peanut butter. Mamasyami Deli Foods, from plain to crunchy, and soon to double zero (no sugar, no salt) peanut butter are now also sold in Marinduque, Occidental Mindoro, Oriental Mindoro, and Metro Manila.



Seeing that her product could compete with other bigger brands in Metro Manila, she sought the assistance of the DTI in Romblon in 2006. She was then tapped as one of the beneficiaries of the One Town One Product (OTOP) Program.

During this period, Ellen established her own business apart from the cooperative’s activities. However, she still paid tribute to members of the cooperative, who were mostly mothers, by calling her new business Mamasyami Deli Foods. “Mamas” was a tribute to the mothers of the cooperative. “Yami,” a play to the word “yummy,” described the unique flavor of the peanut butter. “Deli” was short for delight.

Her initial capital came from loans that her husband sought from the Government Service Insurance System (GSIS). In addition, Rodolfo J. Mariposque, DTI-Romblon provincial officer introduced her to DTI assistance on production, market promotion, and product development. With these, she learned different inputs on how she could introduce her peanut butter to the mainstream market.

DTI endorsed Mamasyami Deli Foods to Department of Science and Technology (DOST) to take advantage of the Small Enterprise Technology

Upgrading Program (SET-UP). The department supported Ellen’s business with machineries and other equipment for peanut butter production. Fully loaded, Ellen’s business was reconfigurated into full gear.

Going big timeDue to large demands, Mamasyami Deli Foods

processing was transferred from Ellen’s backyard to a bigger manufacturing place, increasing the production output with the support of five new employees. Who would imagine that this multi-island province famously known for its huge marble deposits could be the source of the tastiest peanut butter too? Now, Mamasyami Deli Foods distributes not only in Romblon but also in the provinces of Marinduque, Occidental Mindoro, Oriental Mindoro and Metro Manila.

Ellen manages her business personally and treats her employees like associates, friends, and family members. Considering the well being of her patronizing clients, she introduced good manufacturing practices in her company by providing



OTOPreneur

Ellen E. Muros, ProprietessBrgy. Tabing-Dagat, Odiongan, Romblon

Tel. No.: c/o DTI-Romblon +63 (42) 567.5090Cellphone No.:+63917.7176823 /

+63915.3040268E-mail Address: [email protected]

[email protected]

DTI-Romblon Provincial OfficePC Rodolfo J. Mariposque

Fajarito Bldg., Brgy. LiwaywayOdiongan, Romblon

Tel. No.: +63 (42) 567.5090E-mail Address: [email protected]

[email protected]

DTI-IVB (MIMAROPA)Regional OfficeRC Joel B. Valera

5F Oppen Bldg., 349 Sen. Gil Puyat Ave.Makati City

Tel. No.: +63 (2) 890.1712TeleFax: +63 (2) 899.0900


her employees with sanitary safeguards like gloves, uniforms, and other paraphernalia.

When asked for the formula of her success, Ellen simply says, “Innovation is the name of the game.” Mamasyami Deli Foods’ owner always checks the market segment before embarking on new products.

Mamasyami Deli Foods is still undergoing product development as it introduces new product lines, such as plain, crunchy, double zero (no sugar, no salt), and a new product variety that will be launched in OTOP Luzon Island Fair in November 2010.

Ellen’s business evolution is admirable for her fearlessness in trying new ideas and mainstreaming her product in accordance to the demand in the market. She was not shy to ask for help. Checking the market now and then gave her bountiful ideas on how to innovate and introduce new product lines. But most important of all, Ellen opened and embraced opportunity when it came by her door.

Mamasyami Deli Foods




OT

OP

Ca

riton

/ Bic

ol R

eg

ion

Region 5

OTOP Cariton is an innovative marketing strategy to professionalize vending in the locality and showcase the potentials of using carts other than the traditional ways of marketing.

Aside from boosting OTOP sales, Cariton also creatively communicate and deliver the products to consumers.

Colorful OTOP Cariton is a certified head turner, portable, and convenient to bring to trade fairs.

By DTI Region 5 Staff




OTOPreneur

he aim of mobile businesses such as vending carts, caterers, and vehicle- mounted food services is to reach potential and loyal clients wherever they may be and cater to their needs fast and efficiently. Many may say that it’s the new thing in business, but the cart, kiosk, and the counter-top business have been around since the 1980s. Carts have already undergone several evolutions, most of them started as newsstand-style setups, then turned into mobile cart types. A cart is defined as an open two-wheeled carriage usually pushed by hand. No wonder early cart businesses in the country had wheels even if they were rendered immobile in mall corridors. DTI-5 regional director, Jocelyn L.B. Blanco awarded six OTOP carts to OTOP producers and associations in the six provinces of Bicol. Recipients were chosen on the bases of organizational track record, capability to implement and sustain the operation of the project, and willingness to participate in all OTOP related activities. DTI-5 extended entrepreneurial trainings such as effective negotiation techniques and customer relations to ensure the readiness of the recipients. OTOP Cariton, launched early this year, has opened its doors to clienteles of different persuasions

and varied interests -- from institutional buyers to traditional product connoisseurs, from tourists to balikbayans, and from housewives to everyday budget seekers. The initiative, known as OTOP Cariton, was conceived as another innovative marketing strategy that aims to professionalize vending in the locality and showcase to micro, small and medium enterprises the potentials of using carts other than the traditional ways of marketing. Also, Project Cariton was conceptualized to boost the sales of OTOP products and creatively communicate and deliver the products to consumers. Regional Director Blanco said that these colorful, fancy, and eye-catching carts will serve as tourist come-ons and will take buyers and shoppers by storm, giving consumers a shopping alternative. Buying from carts will not be too much of a hassle, there is a more personalized approach, and the transaction is queue-free. With OTOP Cariton roaming the avenues and alleys of cities in Bicol, not only will it draw customers perhaps out of curiosity at the onset, but it will be a familiar and welcome sight to buyers. Imagine the products sold at your doorstep! The project foresees an increase in sales because of the cariton’s wider reach.

These colorful, fancy, and eye-catching carts

attract tourists, buyers and shoppers, giving

consumers a shopping option. Buying from carts

will not be too much of a hassle. Approach is more

personalized and the transaction is queue-free.

OTOP Cariton in Bicol In the following stories, we will see how goods, unique, and produced only in these provinces, became magnets for those who were looking for pasalubongs and uniquely different products. The good sales generated by OTOP Cariton inspired the installation of more carts particularly in the provinces of Catanduanes, Camarines Sur, Masbate, and Sorsogon.

By Jocelyn R. Berango



By Irene Andes, Mabel Escueta and Daisy Tabirara

he OTOP Cariton stationed in Virac airport

peddling purely food pasalubong items

has, to date, generated a total sales

of P174, 000 since it opened in February this

year. This despite the fact that changes in flight

schedules of two airline companies reduced

the flow of passengers and potential buyers in

Catanduanes sometime in March.

Of the foodstuffs on display in the cariton, the

crispy pili and latik are the top sellers. Crispy pili

are pili nuts cooked in sugar or honey; while latik

is a native delicacy of glutinous rice wrapped in

banana leaf and served with coconut cream. Now

fortified with malunggay extract, its healthy add-on

and striking packaging have also attracted health

conscious buyers.

The DTI project OTOP Cariton is implemented

in partnership with the Virac Pili Processors

Association, Inc. (VPPAI) and is supported by

the Civil Aviation Authority of the Philippines, the

local government of Virac, and by the provincial

enterprise development council.

Inspired by the success of the initial OTOP

Cariton, the Catanduanes Producers Association,

Inc. of which the VPPAI is an affiliate, requested

for another cariton to be stationed also at the

Virac Airport; this time, carrying non-food local

products. In addition to these, two more units will

be awarded within the year that will be placed at

the Virac pier – one unit for food pasalubong items

and one unit for non-food items.


By Jay Percival S. Ablan

n Camarines Sur, the OTOP Cariton was awarded to Buhi OTOP Key Players Association; the cart is used to showcase hinabol, Buhi’s OTOP, the colorful and intricately woven products only found in Buhi and much sought after by both local and foreign tourists. Currently, the use of the cariton where the end products of local weavers are displayed is generating sales faster and at a consistent rate. In just three months, the cariton had a total of P433, 000 sales.

OTOP Cariton whose colorful design is a certified head turner, serves as the common store counter for the association. It is portable, very convenient to bring to trade fairs as a place to transact sales with buyers. Director Tejada attests that, “The association brings along with them the booth (cariton) when they join trade fairs from one place to another. The booth is indeed a head turner with its striking and vibrant design. It’s just like enticing everyone to come to the booth and buy some stuff.” In an interview with Buhi Mayor Rey Lacoste, he said that the OTOP Cariton is a big help to their OTOP entrepreneurs. “Joining any fair this time becomes easy as the cariton is portable and presentable. Indeed, it is spinning the life of their entrepreneurs towards good fortune,” Lacoste expressed.


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By Criselda D. Muega

TOP cariton is indeed wheeling forward Masbate’s best OTOP products like beef tapa, dried pusit, carmelado, and pickled seaweeds among others. The Masbate Association of Producer (MAP), the project beneficiary, was full of enthusiasm and excitement when the cariton was awarded to them early this year. The colorful cart will highlight products only produced in Masbate. On its opening day alone, MAP generated sales of P23, 000. At present, MAP proudly reveals that they had generated P235, 000 in sales from products like processed beef (beef tapa, tocino, and corned beef), pickled seaweeds, ampalaya (bittermelon) and dabong, bagoong, coco vinegar, carmelado, native kakanins and its top drawer, dried pusit.

By Senen C. Malaya


During the awarding of the unit, Provincial Director Edgar Ramos conveyed that OTOP Cariton aims to promote OTOP products and to increase sales of OTOP-enterprises. MAP president Marlene Dimen encouraged all her members to exceed DTI’s expectation and strive hard “para madagdagan pa natin ang cariton.” MAP hopes on owning three more caritons within the year. Inspired by OTOP cariton, the local governments of Cataingan, Milagros, and Dimasalang intend to purchase caritons for the OTOP micro entrepreneurs in their respective municipalities. With this development, the cariton will definitely create more jobs and promote entrepreneurship in the countryside. True enough, the cariton is wheeling local products forward!

business enterprises to introduce and promote their products. Since its launching in the city in February of this year, a total of seven producers have been using the outlet to sell their products. Of these producers, Celex Chips and Delicacies is one of the leading beneficiaries. The company produces taro chips which has become a favorite snack of the young ones and the young once. Celex Chips was established only last year by Maria Cecilia Hapita with a starting capital of P5, 000 but it has come a long way from peddling directly to schoolchildren and to sari-sari stores – it has now availed of the OTOP cariton to promote and sell its unique and nutritious product, the taro chips. Sales leaped to an astounding 600 percent, from barely making P2,000 a month; it grew to P12, 000 per month. With the inspiring business performance, Celex is now planning to upgrade its facilities to meet the growing demand for its products. Celex makes it sure that deliveries are made weekly without fail to make the product available to its growing number of avid munchers.

oods, bags, fashion accessories, and souvenir items. These are just some of the products found in the OTOP cariton of the PAL airline booking office along Magsaysay St., in the province’s lone city of Sorsogon. Cariton reinvented, serves as the modern day marketing outlet for the products under the One Town One Product Program. It assists new and budding



Today, the OTOP caritons can be seen in six provinces of Bicol -- in malls, in the streets, in busy sidewalks, and in transportation terminals such as airports, seaports, and bus stations. In just a span of three months, the project has already generated P0.9 million in sales. Upon realizing that these portable mini stores, the caritons, were eliciting positive reactions and were good vehicles to vend goods, there is now a clamor from government agencies, nongovernment organizations, and from the private sector to replicate Project Cariton. Liwayway V. Chato, Camarines Norte representative, requested assistance from DTI-5 to facilitate the purchase of five additional OTOP carts. Local chief executives from the municipalities of Libmanan, Camaligan, and Ocampo, all in the province of Camarines Sur, also expressed interest in adopting and replicating the project in their respective localities. Intervida, an NGO operating in the province of Sorsogon is also exploring partnership with DTI pertinent to the implementation of Project Cariton. Ines A. Mendoza, president of one of the recipient oraganizations, says, “Project Cariton has changed our ways of doing business and more importantly it had immediately increased our sales.” With DTI-5’s Project Cariton, Bicol OTOP entrepreneurs are given an alternative ride in promoting and selling their OTOP products with flair. There’s actually no magic there, just creative inventiveness.

The deluge of requests from all sectors for the cariton had DTI come up with several considerations for would-be

entrepreneurs to ponder:

• Ensure that the cart has a focused product

• Ensure that the cart is aesthetically pleasing and sturdy

• Plan a layout for the cart’s equipment to make the work flow within the cart more efficient

• Join the cart industry with a unique business concept

• Map out a strategy

DTI - Camarines Sur Provincial Office

Edna S. Tejada, Provincial DirectorFEDMACSI Bldg., Panganiban Drive

4400 Naga City+64 (54) 473.8111

E-mail: [email protected]

DTI - Catanduanes Provincial Office

Ireneo Panti, Provincial DirectorCatanduanes State Colleges Compound

Calatagan, Virac 4800 Catanduanes+63 (52) 811.3507


DTI - Sorsogon Provincial OfficeLeah A. Pagao, Provincial Director

2nd Floor, Benjamin Ty BuildingCor. De Vera & Quezon Streets

Sorsogon 4700 Sorsogon+63 (56) 421.5553


DTI - Masbate Provincial OfficeEdgar R. Ramos, Provincial Director

DTI Bldg., Capitol Drive 5400 Masbate City+63 (56) 333.5734


DTI – 5 Bicol Regional Office Engr. Jocelyn L.B. Blanco

Regional Director3F Albay Capitol Annex Bldg.,Old Albay District, Legazpi City

+63 (52) 480.5749E-mail: [email protected]


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AD


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Elvira M. Jumamil +639173065582



The industry clustering approach achieved

its goal of transforming the stakeholders into a productive

network and collaborative group now reaping the fruits as

a result from an industry whose players work as one.

The industry clustering approach achieved its goal

of transforming the stakeholders into a network and

collaborative group of industry players now reaping the

fruits borne from working together.

Region 6



Muscovado Sugar Industry, Antique


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By Roger S. Petinglay and Ruby M. Melliza

uscovado used to be the next best thing to refined sugar. But recent changes in consumer sensibilities have made it the choice sweetener for the health conscious. Espousing the clustering strategy blueprint, the muscovado sugar mills of Antique are now buzzing with life, getting ready to cash in.

or many years, muscovado, known as the “poor man’s sugar,” was regarded as a low-grade sweetener compared to refined or washed sugar. For a time, this reputation haunted the industry despite the growing number of muscovado sugar mills found in the province of Antique. But lately, the introduction of the industry clustering approach shifted the paradigm of the players resulting to enhanced promotion and development of the industry. “Industry clustering strengthened competitiveness among muscovado stakeholders by adopting an improved production technology for a sediment-free muscovado sugar, developing new markets, and stimulating new partnerships even among competitors for the growth and development of the industry,” stated DTI’s Jose M. Divinagracia, provincial director.

The “poor man’s sugar” had been slowly but steadily finding its niche, thanks to the efforts of the major players of the industry. With a select market of mostly health conscious individuals and institutions, muscovado is now considered a health food by many due to the presence of minerals or trace elements beneficial to the body. Muscovado, as defined in a study made in Antique in December 1992, is an “amorphous powder product primarily composed of sucrose in crystalline form in a matrix of reducing sugar, ash, non-sugar organic matter and moisture.” The color is light brown to very dark brown. Moisture content is higher than centrifugal and refined sugar. The very dark brown is said to contain higher amounts of mineral content and are preferred by health conscious people. The brownish sugar is commonly used as



sweetener in confectioneries and in beverages. It has been indirectly exported to Italy since 2000. Local markets include Palawan, Metro Manila, Bacolod City, and Panay Island.

The muscovado industry in Antique The muscovado production in the Philippines started even before the Hispanic era. It was first introduced by Chinese traders who used animal driven mills with two vertical wooden rolls to extract juice from sugar cane. The gathered juices are poured in big traditional iron pans and processed or cooked into sugar. In 1910 to 1935, centrifugal sugar refineries were introduced in some parts of the country resulting to closure of some small independently-owned muscovado mills particularly those built near the refineries. Some of these mills were transferred to the province of Antique, which opened doors for the establishment of muscovado mills in the 1920s. The muscovado industry in Antique flourished until the 80s as one of its major industries, particularly in the municipalities of Sibalom, Belison, Laua-an, Patnongon, and Valderama. Back in the 60s and 70s, the province was known to supply 70 percent of the country’s requirement for muscovado, made by 200 muscovado mills operating in the province at that time. By 1995, the province had a total production of 53,359 piculs (one picul is 69kg) with annual production was equivalent to 3,682 metric tons. This is based on the survey conducted by the Office of the Provincial Agriculturist and the Antique Federation of Cooperatives. Then Provincial Director Wilhelm M. Malones of DTI Antique, commissioned the Development Affiliates Foundation International in 1999 to assess the muscovado sugar industry in Antique. With the support of Regional Director Dominic P. Abad, said

study was completed with 144 firms owned by 135 entrepreneur-millers as respondents. The survey registered 35,305 piculs for 1998 cropping season. The decrease in production was attributed to the El Niño phenomenon in 1997. The survey revealed that there were 878 sugarcane farmers, 82 of whom are farmer-millers supporting the industry in the raw material side, cultivating a total land area of 529.97 hectares. These farmers are in the towns of Barbaza, Belison, Laua-an, Patnongon, San Jose, Sibalom, and Valderama. Total employment created was 2,230 representing 1,115 households.

Facing challenges As early as 1990, the DTI recognized the potential of the industry and started providing assistance geared towards improving the quality of muscovado sugar. It was a big challenge because milling practices and processes were too entrenched in the culture of the muscovado producers. It was difficult to introduce changes considering the number of village-level muscovado mill that operates in the province. Recognizing this constraint, DTI initiated the organization of the Antique Livelihood Development Inc., (ALDI Inc.) with the vision of establishing a central muscovado mill to produce quality and market-competitive muscovado. This was a strategy to standardize the practices and processes through the establishment of a central mill. ALDI’s first project was the expansion of muscovado farms of the members financed by the Land Bank of the Philippines. The project however was ill-fated as a typhoon devastated the farms. The Philippine Crop Insurance Corp. would not cover the damages, prompting members to lose interest in pursuing the project. With this setback, DTI continued to provide assistance to the sector focusing on firm-level interventions. The challenge then was to improve the productivity and efficiency of individual mills as well as their processes.



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Government interventions With the support of the Department of Science and Technology (DOST), Technical Education and Skills and Development Authority, and the provincial agriculture office, 11 mill owners were given a soft loan by the Antique local government in 2006 for upgrading of mills and facilities. As a result, another group of millers formed the Antique Muscovado Sugar Producers Marketing Cooperative for collective marketing of the muscovado produce of the members. The Philippine Development Assistance Program provided more assistance to the sector. Advocacy efforts resulted to a breakthrough with the establishment of a modern muscovado mill in Laua-an, Antique operated by the Laua-an Multi Purpose Cooperative. A similar facility, which produces sediment-free muscovado sugar, was constructed in Igbobon, Patnongon.

With these developments, expansion of muscovado farms to service new facilities stirred the interests of the local farmers. Packaging and labeling, however, was necessary for the muscovado sugar to penetrate the national and global markets. Efforts to export muscovado sugar to the United States were worked out by Augusto Antonio Azurin of the El Maestro Muscovado and De Buenavista Merchants by setting-up a packaging facility in Funda, San Jose. However, stringent requirements in the importation of food products in the US hampered their operation exporting only one shipment before temporarily stopping the operation.

The strategic clustering Recognizing that previous assistance to the muscovado industry relied heavily on government agencies, private sector participation became a big challenge. And given the number of millers with similar business stakes each in different levels of growth was another issue. It was in this scenario that inspired the replication of strategic clustering approach in Northern Mindanao for the muscovado industry in Antique. As an initial step, an industry clustering seminar was conducted last year in Antique with 56 stakeholders participating, half of whom came from the private sector. The resource persons from DTI Region 10 were joined by the president of the Northern Mindanao Vegetable Producers Association or Normin Veggies. The guests from Mindanao generously shared

Stainless cooling troughs are now used by upgraded mills in Antique to dry cooked muscovado sugar.


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their experiences in implementing industry clustering activities in their respective areas. Individually, they stressed the need for collective efforts between the government and non-government agencies, as well as the private stakeholders, for the growth of the muscovado sector in Antique. Various positive indicators manifested itself after injecting the strategic clustering. Among the major results were the networking and collaboration among stakeholders, market expansion, and upgrading of additional mills. Significantly, new entrants to the industry were generated.

Networking and collaboration After the industry cluster seminar, a 25-volunteer core cluster team was formed from among the stakeholders. The team met regularly to ensure that the industry cluster plan they had formulated was being implemented. “The plan includes activities and projects geared towards the development of the muscovado industry and installing the industry cluster team as overseer,” says Edgar Noble, chairman of the muscovado industry cluster team. The team initiated collaborative efforts to improve the production and milling process and also facilitated networking to tap market opportunities. From individual stakeholders doing business independently, industry clustering enabled them to mature to a solid network of collaborating stakeholders. “We hope that our collaborative efforts as a team will bring muscovado sugar to greater heights, made known as a health food, not only locally but also abroad,” added Mr. Noble.

New players and opportunities One significant development resulting from the industry clustering efforts was the entry of the Banco Buena Inc., a private rural bank interested in financing the expansion of muscovado farms.

The investors formed a corporation namely Culasi Antique Milling Inc., that would establish a modern muscovado mill at Sebaste, Antique. A site had been identified, as well as the farmer-cooperators. It is presently coordinating with DTI and DOST for the purchase of equipment, as well as transfer of technology. To support this venture, DTI recently conducted a business opportunity seminar aimed at convincing planters to expand their farms and encouraging landowners in northern Antique to utilize idle lands for muscovado plantation. The positive response of the participants would ensure the sustainability of raw materials for the proposed central muscovado mill of the Culasi milling corporation. Cluster team agreements have also inducted the Antique Federation of Credit Cooperatives Units Inc. (AFCCUI) as the main consolidator of muscovado sugar in the province.

Muscovado confectionaries are now healthy foods as well with muscovado sugar as sweetener.


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With the funding assistance from PDAP, AFCCUI acts as a market to local producers and millers. In addition, the AFFCUI also invested in packaging and labeling paving the way for the labeled and packed Antique muscovado sugar to go inside malls and supermarkets in Region 6. Other key players, such as the Laua-an MPC, continue to supply institutional buyers from Manila. On the other hand, the Binirayan Fair Traders has revived the marketing tie-up with Alter Trade Corporation that has ensured stable price and market for the nuscovado producers. In addition, entities such as the ABS-CBN Foundation and INSOL Development Foundation have provided marketing fund for individual muscovado millers to consolidate supply. Marketing also made use of trade fairs and exhibits to promote and sell muscovado sugar to other parts of the country. As a result of industry cluster networking, additional funds for upgrading of more mills were sourced out from the DOST. After the industry clustering seminar, seven more mills were upgraded, and are now producing sediment-free muscovado sugar. During its regular meetings, the cluster team explored other sources of funding so that the remaining mills in the province can be upgraded. The industry clustering approach also achieved

its goal of transforming the stakeholders into a network and collaborative group of industry players now reaping the fruits of working hand-in-hand for the development of the muscovado industry in the Province of Antique. The milestones manifest the strides in transforming muscovado from a “poor man’s sugar” to a high quality, world-class natural sweetener for health-conscious individuals around the world.

Antique Federation of Credit Cooperative Units Inc.

Mr. Tomdoly Antonio, ManagerFunda, San Jose, Antique

+639173021437

Laua-an Multi-Purpose CooperativeMr. Ernesto Espanola Jr., Manager

Poblacion, Lauan, Antique

DTI – 6 Western Visayas Engr. Dominic P. Abad, Regional Director

DTI Building, Cor. Peralta J.M. Basa StsIloilo City

+63 (33) 335.0548

DTI Antique Provincial OfficeMr. Jose M. Divinagracia, Provincial Director

San Jose, Antique+63 (36) 540.1726



Carcar town’s artisans have been producing shoes and sandals for generations. Today, organized footwear makers are

exporting and supplying to large retailers.

Known for its ubiquitous peanut kisses, banana chips, and calamay, Bohol has an organized food processors employing

1,200 direct workers.

The pandan bags business of Negros Oriental has only been

operating for the past six years, but the all-women group of weavers have rapidly evolved into entrepreneurs.

OVIF is an ideal marketing event for OTOP products highlighting the tourism and market potentials of Central

Philippines—the destination of more than half of foreign tourists in the country.

Text and photos by Jojisilia Villamor, Lucille Autentico, Merle Falcon, and May Liza Sevilla

OTOP Visayas Island Fair, Cebu City




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t is amazing how Filipino manufacturers make use of indigenous materials to come up with world class ingenious designs that delight our aesthetic sensibilities despite economic constraints!Still, in the vicious commercial arena, “world class” creativity accounts for nothing unless it

earns money. This is the reason why product development and marketing are crucial. And for micro, small and medium enterprises, participation in trade fairs is important for business survival and growth. At the One Town One Product Visayas Island Fair (OVIF) organized by the DTI every November, Visayan manufacturers show the world that they could compete with the best of the best products with

very November, at DTI’s OTOP Visayas Island Fair, Visayan

manufacturers show the world that they could compete

with the best of the best products with unique propositions

that please the eye or palate and win over the most

discriminating buyers.

unique propositions that please the eye or palate and win over the most discriminating buyers.

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Shoes!Shoemaking is part of the heritage of Carcar. The town’s artisans based mainly in Barangays Poblacion 3, Liburon and Villadolid have been churning out shoes and sandals for generations. However, it was only with the founding of the Carcar United Footwear Manufacturer’s Association, Inc. (CUFMAI) that shoemaking became a major industry in the town. Today, CUFMAI footwear artisans have expanded their market to include exporters and large retailers.DTI-Cebu Division Chief Elias Tecson said that it is easier and faster for manufacturers who are organized to get assistance from government. Being members of an organization provides the manufacturers learning benefits and lends them a bigger voice in an advocacy to develop the industry and their business.Today, there are around 16 active members of CUFMAI, majority of whom are from Barangay Valladolid and are employing an average of 15 shoe workers per member. “There are around 1,500 footwear manufacturers in Carcar, but only 16 are currently members of CUFMAI,” Tecson explained. “This is because the DTI wants to limit the members only to those legitimate manufacturers who have registered their business names with the DTI, pay taxes to the local government, and are able to follow the by-laws of the association.” At the Carcar permanent exhibit area for footwear or OTOP Center, local shoemakers have already received several orders from institutional buyers and exporters. There is a long line of shoe stores like Footfit (Ruth del Rosario), Jefferson (Hene Fernandez), Ariel (Elsie Sandoy), Kring’s Footwear (Melencio

Lausa), Lesvie (Leslie Empasis), Jan Rey (L. Liadas), Beht (E. Wamar), Mellenol (M. Aldaya), RJE (F. Inanuria), Lear McGlear (G. Apura), Mary Grace (Perlas awardee M. Tangkay), Ryan (H. Retillosa),among others. The monthly sales average of the center is around P1.5-M. Imelda Aldaya, manager of CUFMAI member Melenoll’s, said that through the efforts of DTI Cebu Provincial Office, the association was able to join prestigious trade fairs and has respectable turn out of sales generated and booked orders. “The DTI has also sponsored a pattern-making seminar for the shoemakers and provided assistance in credit management, delinquency control, and technical assistance.” Tecson said that through President Arroyo’s “Isang Bayan, Isang Produkto, Isang Milyong Piso” program, CUFMAI got a P1-M loan, which the group used to buy raw materials and shoe components in bulk. In response to the perennial problem of lack of capital, the DTI has introduced the shoemakers to government financing institutions. Tecson revealed that Carcar now supplies shoes to the Visayas and Mindanao, particularly big malls in Mindanao. He added that some colleges, like the Southwestern University and the University of Cebu, now buy nursing shoes from Carcar.




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Food! Bohol, a favourite tourist haven, with its ubiquitous peanut kisses, banana chips, and calamay, has also enjoyed DTI assistance. The Boholano Processed Food Business Association, Inc., is the first organization of food processors in the province. It employs 1,200 direct workers and has benefited from the creation of the Integrated Technology, Systems and Support Amenities for Food Enterprises or the ITS SAFE Center. Members of this association further improved the quality of their food products with the establishment of the first Boholano Food Safety Team and Designers Pool for Product Packaging. DTI Bohol Provincial Director Nannette Arbon said this introduction of food safety measures, food sanitation, good manufacturing practices, introduction and adoption of appropriate product packaging and labelling had contributed to the expansion of local food producers’ market. Bucarez Food Processing Corporation has seen the importance of high quality pasalubong products particularly with their peanut kisses.

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“We used to have difficulty in increasing product shelf life until we decided to change part of the ingredients and switched to a more appropriate packaging with the help of the government,” Manager Francis Serenas of Bucarez said. Director Arbon said, “aside from the usual pasalubong products, we are also trying to increase the shelf life of the traditional calamay and ube food products. Also, we have facilitated Bohol food producers’ participation in trade fairs so they can network with food processors, exporters and consolidators.”



Bags!

The pandan bags of La Libertad, Negros Oriental has only been in business for the past six years, but this all-women group of weavers - comprised of mothers, housewives, local dynamic and forward-looking women - has improved the living conditions of some 18 families or more. They are the La Libertad Weavers Association (LALIWA). LALIWA regularly produces mats, bags, baskets and various accessories, with its members developing into entrepreneurs and businesswomen. “The association, which began producing hand-made bags out of pandan as the raw material, has empowered at least 18 women of two barangays in La Libertad,” DTI Negros Oriental Provincial Director Javier Fortunato said. He added that close coordination with the DTI-Negros Oriental Office has greatly improved the group’s business through the agency’s product development initiatives and marketing assistance. “Their bags have now crossed borders and continents with their improved designs and quality.” From the start of their operations in 2004, the group had been assisted and closely monitored by then mayor and now 1st District Congresswoman Josy S. Limkaichong. With an initial capital of only P13,000, the group now has some Php150,000. in assets, excluding the sales from past participations in trade fairs. Today, the good congresswoman still provides assistance to the group through her livelihood

projects, while DTI continues to expose them to business opportunities, such as the One Visayas Island Fair (OVIF) and other regional trade venues.

Buythematthefair!

For these business organizations and many like them in Central Visayas, undergoing product development and joining trade fairs were keys to their success. They all agreed that such activities opened doors for them and allowed them to break into their target markets. Helping MSMEs expand their market reach and sustain business has always been a major concern of the DTI. Various DTI agencies have been tasked to design marketing programmes to increase the exposure of MSMEs in domestic and foreign markets, and to improve the distribution of MSME products between local manufacturing and trade sectors. As part of the agency’s assistance to manufacturers and producers in the Visayas, the DTI annually sets up OVIF, a five-day order-taking and retail selling fair. It showcases the best producers from Central, Eastern and Western regions of the Visayas in one venue. The atrium of SM City Cebu is the area chosen mainly because of its high visitor traffic. Here, the finest products of the Visayas are exhibited for the convenience of institutional buyers, exporters and export traders. To enthusiastic buyers who visit the OVIF each year, exhibitors seem a bit practised or adept at what



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OVIF is an ideal marketing event for OTOP products of various municipalities in the Visayas, highlighting the tourism and market potentials of Central Philippines, which is the destination of more than half of foreign tourists in the country. This activity has generated significant sales, trained exhibitors in dealing and negotiating with local and foreign buyers and exporters, and developed new exporters from among the participants. “Success of any trade fair is always determined by sales and tangible interest from buyers. And I am proud to say that in the last four years, OVIF has served its purpose. With each year’s holding of OVIF, our local manufacturers and producers have continued to increase their market reach,” Caberte concluded.

they do. “Preparing manufacturers for a trade fair actually starts months ahead,” Arbon said. “Manufacturers and producers are provided with DTI assistance with regard to raw material identification to trainings in product design and market knowledge, among others. Prospective trade fair participants also undergo a screening process to determine readiness. Most first-timers start with trade fairs at the provincial level and later graduate to the regional stage, before moving on to the national and international arena.” To gauge the impact of trade fairs on exhibitors, DTI designed a monitoring system to document sales generated during a fair. “DTI provincial offices also monitor movements of post-fair sales. Intensive monitoring and follow-up support is provided to ensure conversion into actual sales of booked orders and orders under negotiation during the fair,” Arbon explained.OVIF will be celebrating its fifth anniversary in November this year. And because it is the last fair under the OTOP project’s five-year run, the showcase promises a more exciting array of items: souvenirs, gift and novelty items, furniture and furnishings, natural fibre, processed food, footwear and fashion accessories such as bags, shawls, headgears.DTI-Cebu Provincial Director Nelia Navarro said that trade shows has always been an opportunity for producers to enhance brand and product visibility, promote new and existing products, generate leads and drive incremental sales. “Also, trade show participation enables the entrepreneurs to stay on top of the latest industry trends, gain competitor insights, make key industry contacts and further solidify relations with current customers,” Navarro added.DTI Regional Director Asteria Caberte pointed out that attention to logistical details and coordination with the three participating Visayan regions had been vital to the success of OVIF. “For businesses that lack high level of marketing, an intra-regional exhibit like the OVIF is a good opportunity to showcase the best of Philippine made products,” Caberte said.

Boholano Processed Food Business Association, Inc. (BPFPAI)c/o DTI – Bohol Provincial OfficeMa. Elena C. Arbon, Provincial Director2F FCB Bldg., CPG Ave., Tagbilaran CityTel. +63 (38) 501.8260Fax +63 (38) 411.3533Email: [email protected]

Carcar United Footwear Manufacturer’s Association, Inc. (CUFMAI)c/o DTI- Cebu Provincial OfficeNelia F. Navarro, Provincial Director3F LDM Bldg., M.J. Cuenco Avenue Cor. Legaspi Street, Cebu CityTel. +63 (32) 412.1863 / 253.2631Email: [email protected] [email protected] La Libertad Weavers Associationc/o DTI-Negros Oriental Provincial OfficeJavier R. Fortunato, Jr., Provincial Director2F Uymatiao Bldg., San Jose Street Dunaguete CityTel. +63 (35) 422.2764Fax +63 (35) 225.7211Email: [email protected]

DTI-7 Central Visayas Regional OfficeAsteria C. Caberte, Regional Director3rd Flr, WDC Bldg., Osmena Boulevard Cor. P.Burgos, Cebu CityTel. +63 (32) 255.0036 / 255.0037Fax +63 (32) 253.7465Email: [email protected] [email protected]

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Rejano’s Arrowroot Cookies: A tradition worth savingA delicacy of Marinduque, made from first class high fiber starch

extracted from Uraro (Arrowroot) tubers, organically grown by hundreds of farmers in the island

Arrowroot cookies is now available in

selected supermarkets in Metro Manila and Guam, USA

Carmelita R. Reyes, OwnerBanahaw, Sta. Cruz, Marinduque

Tel. No.: +63 (42) 321.1069

Rejano’s BakeryA r r o w r o o t C o o k i e s


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Region 8

San Juan, Bobon, Northern Samar

By Claire O. Diaz

DTI prepared a lowly peddler’s product to become more competitive in the market. All these were new to her. And amazed she was when a new label was designed for her very own pinangat. The trade fair opened the doors for

Mana Lily’s pinangat to a wider market.

With the dramatic increase in the demand for her product, she availed of assistance to procure equipment to increase

her production and fill new demands.




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delicacy made from gabi leaves and coconut milk, pinangat is slowly making a former street peddler’s dream of a better life come true. Through continuous product development and even more creative marketing techniques, the humble pinangat sets its sights to faraway land.

n a typical day, Mrs. Lilia E. Cardeño, or Mana Lily, is already up at about three in the morning and ready to prepare the ingredients for her special concoction, pinangat. A traditional Bobonanon delicacy, pinangat is made from gabi leaves, coconut milk and spices and is Northern Samar’s answer to the Bicolano’s laing. Mana Lily would start the day by tediously selecting and shredding the gabi leaves then sun-dry them for at least four hours. While waiting for the leaves to dry, she would then laboriously extract the coconut milk manually. When all the ingredients are carefully selected and set, she would indulge in the cooking process usually taking her from two to three hours. A little rest would come after cooking as she lets the cooked pinangat cool down a bit. That little rest is just enough to reload energy for her next chore, which would be peddling her product in the neighborhood. The daily grind was on top of Mana Lily’s usual routine playing the triple role as wife, mother, and grandmother. Oftentimes, she would deeply ponder and pray to God to help her and her family for deliverance from the gripping bondage of poverty.San Juan, a small barangay of Bobon, Northern Samar, is home to Mana Lily. A petite woman in her early 60’s, Mana Lily’s curly brown hair complements her dark skin, a complexion resulting from her daily basking in the sun as she peddles pinangat around her neighborhood. The lines in her forehead resemble the years of hardship in facing the daily need of trying to make ends meet.

A spark of hope

For years, Mana Lily endured this typical day with incredible energy. Until one day, a development facilitator from the DTI came to see and invited her to attend an entrepreneurial development training. At first, Mana Lily was apprehensive to go for fear that she would not fit into the group because she was just a lowly pinangat vendor. She eventually found a

way to overcome her fears and decided to give it a try. During the training, Mana Lily gained substantial information regarding DTI programs, particularly the OTOP program, which she believed could help her realize her dreams. With DTI’s commitment to help, Mana Lily went home happily holding in her heart a spark of hope. That initial encounter was followed by a series of visits, activities, and consultations for Mana Lily’s pinangat project. She attended several skills, productivity, and entrepreneurial development trainings



with DTI, preparing her and her product to become more competitive in the market. Her pinangat was particularly selected for product development All these were new to Mana Lily. And amazed she was when a new label was designed for her very own pinangat.

New opportunities, new challenges

Mana Lily’s pinangat was initially launched through the Bahandi Regional Trade Fair on October 2007. Her pinangat had instantly become the favorite among the buyers, making it one of the top selling products at the fair. It was even featured in the show “Kabuhayang Swak na Swak,” hosted by Amy Perez, during that trade fair. There were people who, at first, only wanted to have a taste of Mana Lily’s pinangat, but went back the following day to buy only to find out that stocks ran out faster than expected. The trade fair opened the doors for Mana Lily’s pinangat to a wider market. With the dramatic increase in the demand for her product, Mana Lily availed the assistance from government agencies and through DTI to procure equipment, which she then used to increase her production and fill the new demands. The local government of Bobon, under the leadership of Hon. Mayor Benjamin Jao, also funded the improvement of her production center to help ensure the cleanliness and safety of her product. Currently, both agencies are still working together to fully develop Mana Lily’s pinangat. Toddy Honey, an interested entrepreneur, visited the DTI office and expressed his interest in bringing pinangat to the Filipino market in the United States of America. According to Mr. Honey, his friends in the US had been repeatedly asked him to find ways for the pinangat to be available in Filipino stores in the US, so that they could buy the product anytime they want to. Mr. Honey further added that Filipinos in the US would “literally turn greedy” every time they got a hold of a pinangat from Bobonanon’s arriving from the Philippines. DTI Provincial Director Stanley C. Tabiando made a commitment that they would find ways to introduce pinangat to the US market. Dir. Desiderio P. Belas, regional officer-in-charge of DTI-8, also saw the potential of the product and encouraged it to be enrolled in the Export Pathways Program of DTI. With these positive developments, Mana Lily is no longer worried about making ends meet. Her new challenge is fulfilling the ever-increasing demand for her pinangat. Her face is no longer masked with depression; instead, it glows with a cheerful and hopeful smile as she looks on a clear, bright future that is slowly unfolding before her and her family.

PinangatLilia E. Cardeño

Brgy. San Juan, Bobon, N. SamarNo.: +639196576413 / +639058182139

DTI - Northern Samar Provincial Office Stanley C. Tabiando, Provincial Director

2nd Floor Singzon Bldg., Balite cor Quirino Sts, Catarman, Northern Samar

Tel/Fax No. +63 (55)-251-8334Email: [email protected]

DTI - 8 Eastern Visyas Regional Office Desiderio P. Belas, Jr., Regional Officer In-Charge

Pawing Palo, LeyteTel No. +63 (53)-323-4082


God’s help ran through the hands of government’s development workers, Mana Lily has finally found answer to her prayers. Amidst the gabi leaves she gingerly picks and selects everyday, she found the right path slowly unfolding before her paving the way to the fulfillment of her dreams.


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Features:Product development and design clinics • Trade fairs • Tawid ken Partuat Ilocos Sur Trade and Tourism Exhibit at SM Megamall, Mandaluyong City • Partuat ken Patanor Trade and Agri-Fair Conduct of skills upgrading training • OTOP program promotion • Financing • Techno transfer

For more details, please contact:Provincial Government of Ilocos Sur

Office of the Governor(077) 722-2740/ 2746 / 2776

Department of Trade and Industry(077) 722-2688


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Region 9



There is more to the story of the fishmonger who became a millionaire. Amy Mendoza’s hard work, patience, and determination,

helped her turn a kitchen venture to a growing enterprise now employing about a hundred workers.

Amy Mendoza is a proud recipient of the prestigious Pres. Ramon Magsaysay Outstanding Filipino Worker Award in the self-employed category while her company enjoys the distinction of having been

awarded as an outstanding SME.


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suki’s refusal to buy her banyera-full of herring gave Amelita “Manang Amy” Mendoza the golden opportunity to leap into a venture she knew little of. Help from government institutions paved the way for the 2007 Most Outstanding OTOP SME Partner to become a multi-million industry Manang Amy could only have dreamed of.

ou must have heard of that story about the fishmonger who became a millionaire. “Opportunities abound even in seemingly hopeless situations,” says Amelita “Manang Amy” Mendoza on hindsight. Her own family’s rags-to-riches story galvanizes her belief in the saying that when God closes a door, He opens a window, somewhere.

Coincidence or fate? Call it serendipity. But Amelita’s opportunity to rise from abject poverty came masquerading as a catastrophe. “I was late that day in delivering my fish to my suki,” Manang Amy recalls. “I bought one banyera-full of tamban-tuloy (herring) on credit planning to pay for it at day’s end,” she adds. “It’s not my usual habit of getting that much fish but I wanted to sell more that day, hoping to earn a little more for my family.” Her plan to go “big time” as a fish vendor was dashed as soon as she arrived at her suki’s place. Some vendors had already gotten ahead of her! Worse, her suki who was already processing tamban into bottled sardines told her that he had bought enough already and wouldn’t buy more.She remembers how she pleaded since how can she now pay for the banyera- full of fish if these were not sold? She had neither a stall in the market nor a place in the sidewalk to sell her fish. She had bitten more than she could chew. Walking back home, desperate and panicky, she thought of processing the fish into Spanish-style sardines herself. After all, she had seen and observed many times before how it was done by the workers of her suki. Surely, she thought, it will be a breeze. With the help of a Chinoy friend who agreed to be her business partner, she was able to procure

the ingredients such as corn oil, condiments, and bottles for the processed sardines. With much trepidation, she brought her first bottles of finished product to the Chinoy’s family for a taste test. Incredibly, she was in for a big surprise, they liked it! The processed sardines quickly sold, then without labels, to some of her partner’s friends in Manila. After the first shipment, orders just kept coming. It was unbelievable! But Manang Amy had another problem -- all she had for capital was P200 -- and she had to deduct her family’s food budget from the measly amount.

Moving mountains A religious woman, Manang Amy always sought refuge in God’s divine intervention. She started storming heaven for help. Heaven’s answer came in the form of a bank loan facilitated by her Chinoy partner since she neither had any connection nor property to stand as a collateral. In time, she was able to pay back her loan. Little by little she expanded operations to meet the growing demands for her products. At first, she only had her family to help in the production. As years went by, and as profits

Amy Mendoza with her husband, Alberto.





kept pouring in, Manang Amy’s family-owned company, Mendoza Industries, became the employer of around a hundred workers involved in the production and marketing. Mendoza Industries rose above the competition and has now become one of the big names in the sardine-making industry in the province of Zamboanga del Norte.

Rising to the challenge

In any business, one must learn to adopt new ideas to perform better. In the production of bottled sardines, the problem had always been the breakage during transit to the customers and how to package the bottles in multiple tiers or divisions. The company adopted the use of locally fabricated retorts box type and multiple autoclaves that contributed immensely to the production process. Production volume as a result of this innovation, expanded sharply to over a thousand boxes per month.

Over the years, Mendoza Industries has continuously upgraded its facilities and production process to be able to assure quality and satisfy new markets. This proactive attitude made it the first in the province to get the HACCP and the Halal certifications. Through continuous research and development, the company has expanded its product line to its existing six: herring sardines in tomato sauce; herring sardines regular, in corn oil; hot and spicy herring sardines in corn oil; bangus sardines, in corn oil; hot and spicy tuna sardines, in corn oil; dried herring spicy tuyo, in corn oil. It has diversified into the processing of sihag-

sihag and andres-andres, both delicious shellfish species that can be found in only a few places in Zamboanga del Norte. The shellfish’s exclusivity had made it more unique and sought-after. From Manang Amy’s initial P200 capital and sales of a few thousands when she started in 1984, the company annual sales has now ballooned beyond the million peso mark. From the thatched-roof hut and squalid environment where her family used to live in Sicayab, the family now owns a big compound where their factory and new house are located. They have acquired parcels of land and vehicles, and they can now afford to send their children to better schools. “Salamat sa Ginoo, makakaon na jud tawon mi karun ug maayo” (Thanks be to God, we can now eat well through His provisions), Manang Amy says with gratefulness in her heart.

Government help Mendoza Industries would not have gone

far were it not for the active support of the local government and national government agencies working together as a team. Bottled sardines is

Dipolog City’s as well as Zamboanga del Norte’s provincial OTOP and industry cluster.

Since the launching of the OTOP program, a number of improvements and assistance have been made to the enterprise that contributed vastly to its fast growth. Jointly, the Bureau of Fisheries and Aquatic Resources and the Department of Science and Technology with the DTI extended research and development assistance making it possible for the fabrication of retort/box and use of multiple autoclaves. These materials addressed the issue of in-transit breakage suffered by business dealing with bottled products. Mendoza Industries also obtained Halal certification through the help of DTI. Trainings, consultancy services, product development support, and marketing events in the form of local, national, and international fairs facilitated by the DTI enabled the company to expand rapidly its domestic market base and allowed it to penetrate the export market. That’s not all. Dipolog City local government, in its bid to brand the city as the bottled sardines capital of the Philippines, also went all out in


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OTOPreneur

support of the In-glass Sardines of Dipolog Association (ISDA) where Mendoza Industries is a member. Help also came in the form of advocacy, financial support for OTOP enterprises, creation of provincial website featuring OTOP products, and financial support for the enterprises during trade fairs and missions. To ensure sustainability of the bottled sardines industry, the Dipolog government also entered into an agreement with ISDA members for responsible fishing so that no small fish will be caught, particularly tamban which is the main ingredient in making sardines. Recalling how nervous she was when she debuted in her foray in national fairs in Manila, Manang Amy was so grateful that DTI staff were by her side to coach and help her bag her first big orders during the business matching sessions with big establishments and exporters in Manila.

Recognitions Mendoza Industries has, over the years, become the recipient of many awards and recognition.In 2002, Manang Amy became a proud recipient of the prestigious President Ramon Magsaysay Outstanding Filipino Worker Award in the self-employed category. Mendoza Industries at the same time was adjudged one of the outstanding SME awardees in the entire country. The following year, the Mendoza Industries was feted as one of the top 40 SME graduates in the country and was named the most outstanding OTOP SME Partner in Western Mindanao region in 2007.

A blessing to the community In gratitude for all the blessings and comforts that her family is now enjoying, Manang Amy is paying forward the same benefits to her community by buying her neighbors’ catch and by employing the fishermen’s wives. During summer she accommodates students in her company joining the government job program. Manang Amy, naturally steadfast in her faith, always looks forward to contributing to and sharing with community and church activities. Manang Amy’s story proves that success can hide behind unexpected, often miserable, circumstances. Yet for most part, her story tells of utmost determination, enormous hard work, and perseverance coupled with steadfastness in her faith that, Manang Amy believes, made all the difference in turning obstacles into stepping stones to success. Have you heard of that story about the fishmonger who became a millionaire? That could be Manang Amy’s and yes, that story is absolutely true.

Mendoza Industries

Ms. Amelita A. Mendoza, ProprietorD’ Beach Sicayab, Dipolog City, 7100+ 63 (65) 212.4571; +63918.4462313/

+63917.7241607

DTI-Zamboanga del Norte Provincial Office

Noel R. Bazan, Provincial DirectorFelicidad I Building, Quezon Avenue, Miputak,

Dipolog City, 7100+63 (65) 212.2331 [email protected]

DTI-9 Zamboanga PeninsulaRegional Office

Nazrullah B. Manzur, Regional DirectorGov. Ramos Avenue, Sta. Maria,

Zamboanga City, 7000+63 (62) 991.3237; 991.3238

[email protected]



Region 10

Meljoydee Ice Cream and Cone MakerMaramag, Bukidnon

By Famelah Racquel D. Villanueva

ew designs gave

Meljoydee’s products

a thorough makeover

giving it a hip and

modern look, one

that captures the eyes of the

discriminating buyer.

“Children are the easiest and

hardest to please. They just

love anything frozen and

colorful. But they get bored

easily too. New tricks

keep them excited

all the time.”




OTOPreneur

they acquired their first electric freezer in 1985. Two years later, they purchased a prefabricated main component, a 1.5 hp motor, and other parts for a mechanical ice cream mixer for P6,000. Now having gone mechanized, the prospects for expansion became even brighter.

In that same year, the couple decided to venture into the wholesale and retail of ice cream cones that they purchased from Davao. They negotiated with their supplier to deliver a fixed volume of cones on a monthly basis in

Tired of being contractual workers since they were still single, Melchor and Felomina Oguimas decided to cease being mere employees by becoming entrepreneurs themselves right after they married in 1980. Their decision immediately initiated them to the perennial problem that hounds would-be-entrepreneurs – lack of capital. Added to this is the fact that neither of them had any formal education on business management nor had any entrepreneurial and management training. With only fifty pesos between them, they opted to go into the making of ice cream at home since Melchor had a working knowledge in this field; his father had been making and selling ice cream as a living. Their initial capital was used to buy the basic ingredients but Melchor had to borrow his father’s two hollow cylinders where the ingredients will be mixed. To sell their product, Melchor used the same cylinders to store the frozen ice cream, load these in a wooden box cart, and peddle them around the community come hot weather or pouring rain.

After five years, through sheer persistence and hard work, the couple became known as makers of quality and affordable ice cream. With their earnings, they were able to buy their own cylinders and replaced those that they borrowed from Melchor’s father. With this initial success, they decided to go legitimate by applying for a business permit and trade name. It was then that Meljoydee Ice Cream Maker (MICM) was born. The name is a combination of the names of the couple’s three children – Melvin, Mary Joy, and Melody. They continued to manually mix ice cream and kept them frozen by using blocks of ice until

How far will your fifty pesos go? Perhaps pay for a five-kilometer taxi ride, a value meal from your favorite fastfood, or some knick knacks? In Bukidnon, one amazing couple turned a fifty pesos

savings into a million peso family business. This is their story.

The fifty-peso savings

The ice cream cones

Filomena Oguimas in her ice cream special stand.



their locality, Maramag. Not only did this assure them of a steady supply of cones, it also brought down their operation expenses by saving on fares travelling to Davao. It also allowed them to network with other ice cream makers in the province. Seeing the potential market of the new venture, the couple integrated cone production in their line of business. In 1992, MICM applied for a loan under the Tulong Sa Tao – Self Employment Loan Assistance (TST-SELA) Program of the DTI through its local conduit, the Maramag Community Credit Cooperative. The loan was used to buy their first cone making equipment worth P30,000. The steady increase in profit enabled them to buy another two and a freezer in the span of two years. Four more additional freezers found their way to the plant. Business was good. MICM evolved from an ice cream maker and cone wholesaler-retailer to an ice cream and cone manufacturer. Hence, during the renewal of its trade name, they officially changed it from MICM to Meljoydee Ice Cream and Cone Maker (MICCM). For the second time, MICCM applied for a TST-SELA loan at MACCO in 1995. It also applied for other financing assistance from the Maramag Businessmen’s Association and “Hagdan sa Pag-uswag.” It used the combined loan for the down payment of an Isuzu Elf Wide cargo truck in the amount of P142,000. The business now had increased its mobility and expanded its area of operation. The arrival of a brand new electric cone molder machine from Italy in 2003 through Cordon International boosted their production even further. The equipment worth P1.3 million came from the loan proceeds under the SULONG Program of DTI through its attached agency, the Small Business Corporation (SBCorp).

Anyone who’s under the sweltering heat of the sun will be craving for something cool and sweet. According to Felomina, they have a diverse client - children, teen-agers, tambays, laborers, transients, and tourists. Because of this, their ice cream factory began producing ice cream sticks and ice buko and added mango, melon,

cheese, and durian to the original ube (yam) and chocolate flavors. This move was well-received by ice cream fans in the community, especially by school children who are one of their most loyal customers. Felomina has the natural instinct in detecting the shifting moods of their clientele particularly that of the children. “Children,” says Felomina, “are the easiest and hardest to please. They just love anything that is colorful and frozen. But they get bored easily too, so you have to keep plenty of tricks under your sleeve to keep them excited all the time.”

The turn of the 21st century was not favorable to the company. The entry of a big competitor in the area weakened the demand for their products. It even pirated some of its workers and ambulant peddlers. Most of their customers turned their interest to this new company. With sales going down fast, and bills piling high, there was an immediate need to caulk leaks in a sinking business. MICCM employed new strategies to minimize wastes and reduce production costs by recycling excess raw materials to feeds, instilling thrift measures in the workplace, installing proper record keeping, and further improving the taste of their products. The couple acknowledged that the assistance and support from the local government and other government agencies propelled them to rise again.

In order to comply with government regulations, the MICCM got its license to operate in 2004 from the Bureau of Food and Drugs. This particular license ensures legal compliance in the importation, exportation, trading, and distribution of food products in and out of the country.

Different folks, different tastes

Entry of competitors

The makeover


OTOPreneur

Two years later, the Oguimas availed of thecreative services of the Product Developmentand Design Center of the Philippines that gave MICCM’s productsa thoroughly hip and modern look, one that will capture the eyes of the discriminating buyer. The company also looked into other aspects of their business. It improved and adopted better environmental practices by leaving its eco imprint in the community through proper waste segregation and disposal. The ice cream company made sure that it runs above the law by not employing minors and by providing security and health benefits to its full-time workers. They may not be members of any environmental organization, but social responsibility is deeply embedded in the company ethos.

By the time the Maramag local government launched processed foods as its One Town, One Product (OTOP) in 2007, MICCM had become one of the most sought-after stakeholders of the program. OTOP opened more windows of opportunities for the Oguimas couple. The program gave them the opportunity to meet with potential buyers, display their products in various OTOP pasalubong outlets, and promote their products by participating in local and regional fairs. These added exposures enhanced MICCM’s brand increasing their sales by more than 40 percent in just a year. The pasalubong outlets, particularly at the Maramag’s Best Pasalubong Center, contribute about 30 percent increase to their over-all sales. Meljoydee Ice Cream products are not all stationary. It has a contingent of mobile peddlers, with an ice cream boxes on their backs or pushed in ice cream carts, moving around the towns taking it to buyers wherever they may be. The band of ice cream peddlers has penetrated additional markets in neighboring municipalities. Some of them reaching as far as Wao in Lanao del Sur and Banisilan in North Cotabato, provinces in another region of Mindanao. Today, market share even grew by as much as 50 percent.

The town’s celebrity product

Reaping the fruits In September of 2008, MICCM was awarded the most outstanding micro, small, medium enterprises (MSMEs) in Bukidnon during the MSME week celebration presented by the provincial government of Bukidnon, the DTI, and the Bukidnon SMED Council. The award is given to MSMEs that demonstrates great potentials, shows support to various MSME development programs in the province, and exercises their corporate social responsibility. The couple says that, perhaps the best part of it all was gaining the trust of the community, and making them proud by the various recognitions their locality has received. Honors and awards easily made the name Maramag synonymous with great pride. Today, MICCM has an on-going building expansion through its second loan services availed from SBCorp. Records also show that they now have an estimated asset size of P4 million, employs 30 workers, and registers a P2.5 million in sales since they started their business in 1980. Amazing outcome from a fifty-peso capital. In the next three years, it is their goal to have a fully good management practices-compliant facilities and equipment. The couple acknowledges that a continuous improvement of the quality of the product enhances its competitiveness and should be a running goal. They also wish the company could help ease unemployment by hiring more people in the community. The Oguimas couple entered the business world with all odds stacked against them. But they possessed certain values that greatly contributed to their success. What they had were an unwavering faith in God, their love for one another, determination, hard work, and persistence. And a fifty-peso savings.



Preserving tradition through world-class gowns and barong tagalog

Bagong Barrio Multipurpose CooperativePercy Rapanut, Manager

Grace Park St. Bagong Barrio, Pandi, Bulacan

+63 (44) [email protected]




OTOPreneur

Engr. Samuel B. AlcalaLabason, Zamboanga del Norte

Mobile : +639193068609

Table and counter tops, floor vase, decorative jars of various sizes, plate charger


OTOPreneur



Region 11

“A farmer must be an entrepreneur. He must not stop dreaming and he must not be content with typical produce like copra and fresh fruits. He must look for opportunities to innovate,” Benjamin R. Lao said.

Through the years, Lao has mastered the art and science of organic farming. The Lao Integrated Farm is an outstanding model on maximizing land use without harming the environment.

Donna Belle DelicaciesBansalan, Davao del Sur

By Jenny Molbog-Mendoza




OTOPreneur

ith the increasing partiality for a healthy and sustainable lifestyle, entrepreneurs continuously pump out their creative juices to come up with products that address demands. A Davao farmer-entrepreneur introduces a healthy sweetener alternative.

Model farmer-entrepreneur “A farmer must be an entrepreneur. He must not stop dreaming and he must not be content with typical produce like copra and fresh fruits. He must look for opportunities to innovate,” said Benjamin R. Lao, Donna Belle coconut sugar producer. Lao never thought he would end up as an entrepreneur after graduating from law school in 1985. When he inherited a five-hectare land in BarangayEman, Bansalan, Davao del Sur in 1998, coconuts were the only crop and the agricultural output was meager. Inspiration struck Lao during a visit at the Mindanao Baptist Center where he observed how the organization successfully implemented their sloping agricultural land technology. He then went back to his farm and planted nitrogen-fixing plants simultaneously investing on fruit crops from his salary as a government employee for the next seven years. He also brought in some livestock such as goats and swine, and attended seminars on animal-raising and farming.

Organic farming for chemical-free sweeteners Introduced to the product by the Philippine Coconut Authority, Lao began producing coco sugar in the last quarter of 2007. The Departments of Labor and Employment, and Science and Technology assisted his farm with their expertise to increase coco sugar production from 10-15 to 150-200 kilograms a day. Seeing the huge potential of coco sugar and coco syrup, Lao decided to retire from government service in 2008. “The farm started to be so demanding of my time and I really had to focus on it, especially since I was already producing coco sugar,” he said. Lao added that with his Donna Belle brand of coco sugar and coco syrup gaining national and international

popularity, much attention is really needed. In fact, on November 2009, he already shipped out 2.2 metric tons of coco sugar to the United States after meeting a buyer in a trade fair organized by the DTI. “Our processing is tedious. We always make sure that our coco sugar is better than the ones produced by Thailand and Indonesia and we really can guarantee to our buyers that ours is chemical-free,” he said. Lao is into organic farming which is why his products are guaranteed chemical-free. Even the pesticide that he uses is organic (a mixture of goat urine, sludge from swine, fermented goat manure, cacawati/madre de cacao leaves and local shrub called pañawan with chili). Through the years, Lao has mastered the art and science of organic farming. The Lao Integrated Farm is an outstanding model on maximizing land use without harming the environment. “When I was young, I got dizzy after inhaling chemical spray. I told myself that when I am older, I would practice organic farming,” he claimed. True enough, Lao can indeed brag about tilling a land that is 100 percent chemical-free since all the raw materials for his products are from his farm. With organic farming, his coconut output has more than tripled. Though, it still not enough to meet the demands for coco sugar and coco syrup.

Meeting demands Lao said that with the overwhelming demand from local and international buyers, he has to look for expansion areas. “I’m looking at building another plant in a nearby municipality. But of course, I have to make sure that the raw materials are just within the perimeter of the new plant’s location,” he said. So far, the existing production capacity of the plant, pegged at five metric tons per month, is not enough to supply the monthly requirements of two metric tons for a Manila buyer; another two for Canada, 10 for China, and a 20-footer van load for the US. Lao said he is very optimistic that the demand will even soar higher, especially since that their products are BFAD-approved and his farm is a registered food




facility at the US Food and Drug Administration. He also recently received the organic certification under the crop improvement association of the US.

Hurdling challenges Lao did not reap success the easy way. He and his wife, Fe, had to deal with challenges along the way. “What I inherited was a barren land. Since I really wanted to make the land productive, I really had to invest in researching and gathering enough ideas and to achieve my goal,” he said. Lao’s decision to produce coco sugar and coco syrup pushed him to further research every aspect of the business. “I had to research the health benefits of my products because I saw that it’s really my selling point,” he said. A study undertaken by the Food and Nutrition Research Institute found that coco sugar have a low glycemic index of 35, which is good for diabetics. Having successfully positioned his products as healthy options, Lao gradually saw the light flickering at the end of the proverbial tunnel. Lao was able to hit a 50 percent sales increase between 2007 and 2008. As of last year, the company’s sales was at an average of P400,000 a month, which is 100 percent higher than in 2008. Lao attributed his success to the various interventions that the government has consistently provided him. He cited the assistance of DTI in finding markets for him through the conduct of local, national, and international trade fairs. Apart from that, Lao is among the beneficiaries of DTI’s Export Pathways Program, an initiative that provides assistance packages to deserving micro, small, medium enterprises of the region. These services include firm-level consultancy, participation to trade fairs, market and business matching, and incentives facilitation. The economic accomplishment of Donna Belle Delicacies is a proof of Lao’s determination, which, according to him, has really paid off. His five-hectare barren land has now become a very productive piece of farmland that could produce as much as four times its usual capacity.

“It seems like I have 20 hectares because of the many products I get from the farm. Aside from the fruit crops, my goats are also producing milk, my civets are producing Alamid coffee, and my coconuts have never failed from producing quality and nutritious coco sugar,” he said smiling. Aside from the products that he had mentioned, Lao is also manufacturing ice cream from goat’s milk; healthy candy made from coco syrup and goat’s milk; and healthy juice drinks, such as camote tops with coco syrup, lemon grass with coco sugar, and passion fruit with coco syrup.

Reaping awards and recognitions The economic aspect might be the major yardstick in determining whether a business is indeed growing, but for Lao, he considers his awards as the greatest achievements of his business. In 2008, he was given the National Gawad Saka Award for coconut farming. Last year, Lao was given the Presidential MSME Award for Micro Category; Regional Outstanding OTOP MSME Award; and National Champion of the Productivity Olympics for Agri-Business Small Category by the National Wage and Productivity Council of the DOLE. He saw himself featured in magazines and agri-news items because of his achievements in farming, and coco sugar and coco syrup production.

Sharing the blessings, imparting values As a good agricultural and marketing practitioner and organic farming advocate, Lao shared his expertise with other farmers who had requested him to be the resource person during trainings. He and his wife organized trainings and coordinated with other organizations to share the technology on coco sugar and coco syrup processing. They also committed to act as market consolidators. This initiative of Lao was attuned to the thrust of the local government on environmental protection and aligned with the global trends on organic farming and healthy food and lifestyle.


OTOPreneur

Lao said that aspiring farmers must be ready to pour capital into the farm. “A farm needs big investment. What it produces, you have to give back,” he said. Moreover, he said that to become a successful farmer-entrepreneur, one has to have “enough perseverance and focus on what he is doing.” To earn the loyalty of employees and workers, Lao said that excellent human relations must be a philosophy. The company is compliant to the minimum wage law plus 10 percent share of the net profit from the sales of the fresh fruits. Scholarship grants are also awarded to deserving children of his employees and even extending a full college scholarship to one of his laborers with an average grade. Lao provides his laborers with livelihood projects - even if they are already earning P8,000 to P16,000 monthly - by giving them does (female goat). Their obligation is to return the first kid. The spouses of married laborers, on the other hand, are hired when there are seasonal activities like harvesting of fruits and processing them into candies and jams. Lao organized the harvesters and other staff to form the Lao Integrated Coconut Climbers Association or LICCAS. “I want my 53 employees to be happy working for me,” he said, adding that he only had three employees when he started out. Furthermore, he stressed that corporate social responsibility must be practiced as well. The blessings that the company keeps on receiving must be shared with the community, he added.With the help of PCA and Department of Social Welfare and

Development, he organized trainings on fruit processing for the women in his barangay. The many activities that Lao devotes for his workers and the community manifest his sincere concern for the environment and the people around him. “We are doing all of these because we believe that we must always be guided by faith and belief in God,” he mused. These values, together with his proactive marketing strategies and the increasing demand for more healthy food, there’s no doubt that coco sugar and coco syrup will continuously gain popularity in the global trading arena.

Donna Belle DelicaciesLao Integrated Farm, Brgy. EmanBansalan, Davao del SurBenjamin R. Lao, ProprietorTel. No. c/o DTI-Davao del Sur (082) 553-2507Mobile No. +639077758721E-mail Address: laointegratedfarm@ yahoo.com

Edwin O. BanquerigoProvincial Director, DTI-Davao del Sur2/F Medic Pharma Bldg., Cor. Doña Aurora and Corregidor Sts. Digos City, Davao del SurTelefax: (082) 553-2507E-mail: dti11.ds@gmail. com

Marizon O. LoretoRegional Director3/F Mintrade Building, Moteverde Ave., Corner Sales Street, Davao CityPhone: (082) 224-0511/222-1625Fax: (082) 300-9579/221-4952E-mail: [email protected]



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Region 12

The women in Old Poblacion are not your usual sales people. They are the fishermen’s wives who spend their time

in gainful endeavors.

At dawn, they walk to the shores and wait for their husbands from the seas bearing tons of freshly caught bangsi.

The sight of the sea creatures signifies that a new day has begun.



Photo: Omar Gallinero


OTOPreneur

Every year in January, quaint Maitum town marks Bangsi Festival to celebrate the town’s banner product. As thousands of visitors who flock to see Maitum in its rowdiest day watched, entertained, and enthralled by the sights and sounds, they are also amazed at how bangsi, the odd-looking fish, could so powerfully unite a community

with so much hope and promise. By Evangeline Farnazo

reparing my meal early today, I was contemplating on the long ride ahead to the town of Maitum, one of the seven municipalities of Sarangani Province, the southernmost province in mainland Mindanao. General Santos City cuts across Sarangani. From this city, Maitum, home to unspoiled rainforest, is 140-kilometer away. The town had its moments of fame when potsherds dated to be about 3,000 years old were unearthed in its caves. The archeological find is said to be unparalleled in Southeast Asia. But there is more to this ethnically diverse, quaint town. I was meeting the fish processors in Barangay Old Poblacion, and I couldn’t wait to bring back home a pack of their delectable marinated flying fish, or bangsi in their local dialect. The two-hour, mp3-loaded drive was just worth it. Bangsi belongs to Exocoetidae family, order of Beloniformes (needle fishes) and Actinopterygii class (ray-finned fishes). It measures at a maximum of 26cm in length and lives in the pelagic environment and tropical climate. It can be easily identified by its huge pectoral fins and lopsided tail that allow them to jump out of the water and glide through the air over a

considerable distance. Barangay Old Poblacion, located along the coast, has abundant catch of flying fish from the months of November to September. Majority of the fishing households have pamangsihan, a gear used to catch flying fish. Usually sold in General Santos at a low price, much cheaper than galunggong, fishermen and their wives would rather marinate this fish to command a higher price in the market.

The flying fish looks hideous with its round head and big eyes; hence, it is no wonder

that it does not command a good price in the market. It is also covered with scales rougher than a bangus’. The first time I visited the area in 2003, I was served with a grilled fresh bangsi for lunch. It was also my first time to see a flying fish. I gingerly picked at its meat, and to my surprise, the fish tasted sweet and so good that I ate three pieces of it and who knows how many cups of rice. The whiteness of the meat also came as a surprise. Not even the locally cultured pangasius could compare to its whiteness once cooked.




Coming from the area, a kilo of fresh bangsi, sold for P8.00 to P12.00. I bought two kilos of the fresh ones and five kilos of the marinated fish. Then and there, marinated flying fish had become one of my favorite breakfast menu. The fridge would never be empty of a pack of this delicious product from Maitum.

The women of Old Poblacion

I first took the assignment of assisting the 25 women members of Old Poblacion WINDS (Women in Nation Development of Sarangani) Fish Processing Association seven years ago. These Ilocano-speaking women are the epitome of industriousness.

In early dawn, they are already on the shores of Old Poblacion to await the arrival of their fisherman-husbands and to haul more than 3,000 kilos of freshly

caught bangsi.

The fresh fish would go straight to each household’s large basins for removal of scales and partial cutting of pectoral fins. Another family member, in turn, would split the fish into halves, shaping it into a butterfly form. Afterwards, the

fish would be eviscerated, removed of its internal parts, and washed with cold water to minimize bacterial growth. The flesh underneath the backbone would then be cut to allow the marinade solution to easily penetrate the flesh. The clean fish would then be placed in a brine solution for 30 minutes to allow salt to penetrate the fish’s loins. Afterwards, the fish would be soaked in the marinade solution for two hours, and later placed and arranged in the racks to drain. By six in the morning, racks and racks of marinated fish would be lined along the shores of Old Poblacion for drying until midday. The half-dried marinated fish would be harvested after three to four hours of drying using a stainless thong to avoid direct fish contact. The fish would be placed in a plastic tray and classified according to sizes. These would then be packed in high-density polyethylene bags and stored in a freezer to ensure longer shelf life. There you go, carefully packed marinated bangsi, ready to be sold. Before the day ends, the women of Old Poblacion WINDS Fish Processing Association would have finished packing the marinated bangsi into one and one-half kilo packs. All day long, they would entertain customers coming from neighboring provinces who would come looking for the desired and unique taste of their marinated products.




OTOPreneur

These women are not your usual sales people. They are simply wives of the fishermen in the area, who would rather spend their time producing their own goods to help their husbands and add to the family income instead of having unproductive gossips in the nearest sari-sari store. The late Nanay Moring, as Morina Villareal was fondly called, was the first president of the association. She had done a great job for the women of Old Poblacion. With the assistance of the late DTI-CARP Coordinator Pedrito Pasagdan, they prepared a project proposal to access funding worth P425,000 from the Lone Congressional District of Sarangani for the purchase of land and construction of a fish processing center in the area. Today, two women, Ate Dadang (Imelda Pascasio) and Ate Bebing (Luisa Remegio), the association manager and treasurer, respectively, manage the center. They ensure that the members are continually producing marinated bangsi to accommodate orders from suki and other walk-in clients. Both women do not receive any compensation for their services. “Hindi pwedeng pabayaan namin ang center. Ito ang iniwan sa amin ni Nanay Moring,” (We just cannot turn away from the center. This is a legacy left by Nanay Moring) they claimed, referring to their leader who passed away in 2006. Members who work in the center were paid an hourly minimum wage. Other members were also encouraged to process at home and store their own products in the center. This was to ensure that the produce of each member was of the same quality as the center’s products to assure sales at the end of the day.

Support from all fronts

The Old Poblacion WINDS Fish Processing Center was inaugurated in 2004. This was also the year when assistance from different national agencies poured in. The Department of Labor and Employment granted a total of P120,000 for the purchase of one stand up freezer and one chest-type freezer, and two storage units, each with a capacity of 2,000 kilos of fresh fish. The Department of Trade and Industry, under its Comprehensive Agrarian Reform Program, provided organizational and managerial strengthening seminars and product development training to its 25 members. This was to equip its members in efficiently managing the center and ensuring the continuity of production. In 2006, the Center for Advancement and Strengthening of Community Property Rights, Inc. (CASCO), through a memorandum of agreement, assisted to upgrade the water system facilities. This non-government organization also provided additional processing equipment and materials. It also assisted the organization with the operation and management of the processing plant for almost a year. CASCO hired an external manager to help them properly operate the business. CASCO, Inc. poured in a total of P600,000.00 in investments to improve the processing area, and hire and train quality control officers. They also implemented good manufacturing practices, which prompted the women to proudly wear hairnets, boots, and uniforms during processing.

OTOPreneur



The town’s banner product

With the Old Poblacion WINDS Fish Processing Association leading the processing of marinated bangsi, more than 100 households are also involved in the marinating and drying.

“Marinated bangsi alone, is roughly a P10-million industry,” said Engr. Nenita Barroso, provincial

director of DTI – Sarangani Provincial Office.

The economic impact in the community of Old Poblacion was recognized by all sectors and endorsed the marinated fish as the priority product to be enrolled in the program. The local government of Maitum allocated P80,000 funds for site development and for the processors and key implementers to conduct a study mission on technology, marketing and management of fish processing in Estancia, Iloilo. Annual budget for OTOP was included in the local government’s budget. The continued popularity of marinated bangsi in the region and neighboring provinces prompted the local officials to declare the last week of January in 2008 as the 1st Bangsi Festival in the Municipality of Maitum, Sarangani Province. It recognized that Maitum is among the top producers of

marinated flying fish within the SOCSARGEN area and aimed to give more meaning to its One Town One Product. The festival is seen as a colorful promotion of the local product boosting the morale of fisher folks aiming for higher family income, as well as a celebration of the town’s diverse culture, tourism and economy.

New look, new taste

A true entrepreneur would only take one look and taste to determine that marinated bangsi has a big future in the competitive market. Tasked to assist and continually develop the product, I consider it a perk to my job the excitement of trying new marinated mixes. In 2006, bangsi was dipped to different types of marinade. There were spicy, less salty, sweetened, sweet and spicy, and barbecue flavored marinade. Various tests were also conducted to ensure its safety to local consumers. A new packaging scheme also began as the marinated fish was packed in 500 grams and one kilo packages. “Other products were introduced in 2008,” Engr. Barroso said. Entrepreneurs in the area have developed other value-added bangsi products such as bola-bola, tocino, siomai, bangsi rolls, chorizo, lumpia, embutido, burger patties and nuggets.



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“Packaging has improved from ordinary plastic packs into a branded and labeled packaging,”

Barroso noted.

“Last year, DTI has turned over to the Local Government of Maitum P200,000 worth of double-chambered vacuum packaging machine. The fund was sourced from the Barangay Micro Business Enterprise Development Fund. The Old Poblacion WINDS Fish Processing Association was the main beneficiary of the machine. However, the agreement pointed out that all fish processors using the machine to pack their products can do so at a minimum fee to the association. This is to cover the maintenance cost and electricity,” Engr. Barroso declared. Several technology transfers on fish processing were conducted to encourage more women entrepreneur in the area to learn new mixes and be familiar with the fish products that are popular in the market. The IT unit of Maitum local government was also motivated to design mouth watering labels enticing consumers to try and buy the products.

Come hell or high water

The women of Old Poblacion believes in the value of time. No time is wasted; no work is delayed. Every moment is a challenge. Every day means food on the table for each of the families. But life is no milk and honey in Old Poblacion. Located




in the coastal area of Maitum, facing the raging Celebes Sea, these fisher folks are constantly pounded by heavy rains, strong winds, and waves as big as the mountains. In 2007, hundreds of houses along the shores were washed away by huge waves, leaving hundreds of families homeless. Mostly affected were the fish processors because their daily income depended on fishing.

Fishermen were threatened by other fishermen from neighboring provinces due to boundary conflicts, thereby, limiting their fishing area and fish catches.

Last year, three barangays in Maitum were attacked by suspected Moro Islamic Liberation Front men. Three improvised explosive devices also rocked the heart of Maitum, fortunately, without fatalities. Some well-to-do families temporarily relocated in nearby cities and municipalities. Trade came to a standstill. The great distance from General Santos has also added to the predicament of the people. Maitum became isolated. Frequent visitors feared to set foot in the town. However, even on the face of these circumstances, the people never lost their hopes. If no visitors came to visit and buy their marinated fish, then the marinated fish would come to them.

Processing the fish in the Old Poblacion, a number of women bring them to nearby markets to sell. More entrepreneurial women started to contact bulk buyers for distribution to retail stores.

Partner agencies and government units never stopped honoring their commitment to ensure the success of the project. The women persevered to protect the source of

their livelihood.

Hardened and wizened by the challenges, the townsfolk successfully staged the third Bangsi Festival in January. Celebrated with choreographed street dancing by groups donning colorful gaudy costumes, it also offered a panoramic fluvial parade with delightfully adorned boats. The town hall’s “Sugba-sugba sa Dalan” offered free to the public a thousand kilo-fresh bangsi for grilling in time for lunch. Cooking contests generated utmost interest among the native chefs to discover new ways of cooking bangsi. In January, as the thousands of visitors who flocked to see Maitum in its rowdiest day watched, entertained, and enthralled by the sights and sounds, they were also amazed at how bangsi, the odd-looking fish, could so powerfully unite a community with so much hope and promise. And, today as I am traveling back to GenSan after meeting the incredible women of Old Poblacion with my take-home



OTOPreneur

bangsi carefully wrapped among my stuff, I know that no amount of pounding of rains, strong winds, and waves as big as the mountains can stop these women from doing their trade. Not even threats of terrorism can stop them from waking up at dawn and walking to the shores to wait for their husbands coming from the seas bearing tons of freshly caught bangsi.

The sight of the sea creatures conveys to the women of Old Poblacion that a new day has began.

Old Poblacion WINDS Fish Processing Association

Imelda Pascasio, ManagerOld Poblacion WINDS Fish Processing Center

Old Poblacion, Maitum, Sarangani ProvinceCellphone No. 09077481567

DTI - Sarangani Provincial OfficeEngr. Nenita L. Barroso, Provincial Director

2F National Agency Building, Capitol Park,Alabel, Sarangani Province

Telephone Number: (083) 508-2277Telefax Number: (083) 508-2014

Email Address: [email protected]

DTI-Region XIIIbrahim K. Guiamadel, Regional Director

4F De Luz Bldg., General Santos DriveKoronadal City

Telephone Number: (083) 228-9737Fax Number: (083) 520-0613

Email Address: [email protected]





Showcasing the best of the Philippines, the DTI Davao Showroom features products from all over the country—food, gifts, furnishings, accessories.

The showroom is a one-stop-shop of local goods where buyers and investors can see, order products, and meet entrepreneurs for potential business partnerships.

At the DTI Showroom, buyers can book products and convene business matching with sellers.

Mintrade Building corner Monteverde Avenue and Sales Street

Davao City, PhilippinesDepartment of Trade and Industry - XI Office

Open daily from 8:00 am to 5:00 pm except on weekends and holidays.

For inquiries, please contact DTI-XI TMSMEDD at (082) 224-0511 local 415.




OTOPreneur

Bakit ka pa lalayo, nandito na lahat ang hanap mo!


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Oc

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Surig

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City

Hard work, honesty, perseverance, and a childhood dream helped a fish trader to build

his fresh and processed seafood business from the ground up. Starting with virtually zero capital, Ocean Bounties now boasts of several

best-selling seafood products, as well as a seafood market and restaurant.

CARAGA (Region 13)

By Emily V. Congo, Mary Grace M. Sanchez, and Evelyn C. Arlan




OTOPreneur

He was told that the stench of fish preceded him — a sign to bank tellers that he was already nearby to deposit the day’s sales. He also noticed that people would avoid being near him because he carried a perennial fishy smell with him everywhere he goes. All these Sammy Cambaya amusingly recalls. Sammy was a typical fish trader. Sunburned, fish scales lounged in his strong, calloused hands. His

daily lingo were banyeras, pom, tahop and timbangan, vocabulary of fisher folks and fish traders. That was 17 years ago. Today, Sammy’s success story is one among the few “rags to riches” tales in his coastal hometown of Surigao City, the capital of the province of Surigao del Norte in the Caraga Region. It sits at the northeastern tip of Mindanao, the city’s sun-kissed shores facing ahead to the Pacific Ocean. It was in these sparkling

As a small boy watching traders haggling with the fishermen fascinated

Sammy Cambaya. Fish trading. He fancied himself doing the same.

And went on to build his own seafood business from the ground up with virtually zero capita

l—and hard work, honesty, and perseverance, inspired by a childhood dream.



shores that Sammy, whose father would take him fishing when he was a small boy, found fragments that helped build his dream. Sammy owes his business success to hard work, honesty, trustworthiness and faith in God. Raised in a home where poverty was a matter of fact, his family relied on fishing and coconut farming as their main sources of livelihood. At a very early age, Sammy was no stranger to the sea as his father constantly brought him along during fishing expeditions. He was initiated to business early on by helping out his mother sell guinamos (anchovies) during market days. Hard work had always been Sammy’s strongest suit. During the crisis that befell the coconut industry of the Philippines in the 1980’s, he and his siblings were forced to quit school. They found odd jobs to help support the family. He was 17 years old when he started taking on various menial jobs as a construction worker, houseboy, and laborer.

Afternoon afterthought One late day, after a hard day at the public market, he went to the nearby fish port to take a break. The small fishing boats were just approaching the shore. Nets were hauled. Boats were pushed ashore. The day’s catch had arrived. Traders swarmed in, haggled with the boatmen. Watching and listening to traders haggling with the boatmen fascinated him. Fish trading. Right there he fancied himself doing the same. Pondering on how to go about it, he came up with a practical solution considering his lack of capital. Sammy convinced a number of fishermen from his hometown to sell the marine products to him on credit which he will pay the following day. He sold fish during tabo or market days and made money with only his word as capital. When he got married, he stopped going to the tabo in the municipalities and opted to buy and sell cuttlefish and octopus in Surigao City using the same

strategy. Sammy obtained the products on credit at the public market and delivered them to local marine traders where he was paid cash. His wife, Mary, tended a fish stall at the market and the couple worked hard together to support their growing family.

Not just hard work By taking to heart the biblical principles of honesty and trustworthiness, Sammy quickly gained the trust of the people whom he did business with. He offered his services as a middleman to an island-based supplier. His main responsibility was to ensure that the marine products shipped to Surigao City reach the traders and buyers on time. He was also responsible for sending the sales and ice-filled styro boxes to his contacts in the island. Running errands for his suppliers such as buying fishing supplies and groceries were chores Sammy did not mind doing for his business partners. Sammy’s ordinary day starts even before dawn. In the dark early mornings, he would rush to the pantalan (seaport) to send the previous day’s sales, as well as fish containers, to his suppliers. He comes back in the afternoon to collect the shipment for the day earning himself a peso per kilo of fish transported from the island. Marine trading is plagued by unfair business practices like overweighing and adulteration of fish products. Sammy, however, took pains never to shortchange his suppliers. He remitted the full amount of sales to his supplier after judiciously deducting expenses. This impressed his suppliers. Shortly




OTOPreneur

afterward, word spread about Sammy’s honesty in his business deals earning him more suppliers to his side.

One big faith, one big break The year 1993 was an exciting year for Sammy. With a savings of only P10,000, he decided it was time to move on from just being a middleman, and become a marine trader himself. A small-time wannabe trader, the idea that Cebu City aquamarine product exporters do not entertain small traders like him, did not bother him at all. His guts and an irresistible business proposition propelled him to try his luck and bag a business deal. He went to see one of the biggest aquamarine product exporters in Cebu City to offer his services as direct supplier to the company. Sammy, excited to make an appointment with a big business manager for the first time in his life, went home with a heavy heart. His first attempt to forge a business deal was made memorable by the receptionist who made him wait for long hours only to be told to come back some other time. The manager, she announced, was too busy to see him. For several days, Sammy was in his office at the first hour in the morning until closing time. The message was constant: The manager is not available. With enthusiasm slowly ebbing, he left feeling dejected and went to a nearby church meeting. He was pleasantly shocked to hear the name of the plant manager being announced as the speaker for the night. He did not lose precious time, right after the meeting he introduced himself to the guest speaker and right then and there, Sammy got a contract with the exporting firm. And that was how SMC Marine Products was born.

Hands-on managementSammy’s role radically changed from being a simple mamuhulay (middleman) to that of a supplier. He still bought most of his stocks on credit but he shipped the products to Cebu City directly. Payment was deposited to his account 2-3 days after each shipment. This entailed opening a bank account just

for the purpose of receiving money from his buyer - one of the several “first times” in Sammy’s life. As a micro entrepreneur, Sammy personally took care of all the aspects of the business. He acted as the buyer, cashier, manager, and janitor of SMC Marine Products, not at all strange for a person who knows hard work like his closest friend. He had a vision to improve his business not just for himself and for his family, but also for his relatives and the local fishermen. Aware of the inequity in the business, he was concerned about fishermen earning very little income and the traders getting the biggest share of the pie in the marine trading industry. He dreamed about becoming the first local marine processor and exporter to be able to help his fellow Surigaonons. Back in the 1990’s marine traders in Surigao del Norte enjoyed abundant supply of marine products. Sammy’s capital was very limited but he was fortunate to have suppliers who agreed to collect payment only after Sammy gets paid by his buyer. When the company he was supplying folded up, he found another buyer who was willing to lend money for his trading business. After two years he was able to establish two buying stations in the islands. These days, he has eight buying stations scattered all over Surigao del Norte and Surigao del Sur provinces. By 2003, SMC Marine Products was converted into a family corporation and was renamed Ocean Bounties Fresh and Frozen Products. It now employs 60 people, majority of whom are workers in the crab-processing unit of the company.

A local hit A pasalubong center was eventually established in 2005 which became an instant hit among locals and tourists. Ocean Bounties marine products, whether fresh or frozen, were made available without the inconvenience of having to go to a wet market, customer satisfaction being one of the top considerations. As an extra service to customers, products are packed in styro boxes for those who wish to transport them. Aside from fresh and frozen marine products, the company also began to sell bottled marine products: poot-poot guinamos and shredded dried squid. The latter’s recipe was personally concocted by Sammy.

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Other best selling products were crab meat, sashimi, filleted salmon, octopus squares, crab cocktails, and conch shell (saang).

Tough seas make good sailors

Like all other businesses, Ocean Bounties was not spared from trials and challenges. The dwindling supply of marine products and the decrease in demand from the export market are among the challenges Sammy has to cope with.Innovation is the key for Sammy to be able to stay in the business. At this time, a canning plant for marine products is under construction. This is funded partly from the P3.5-M loan from the Development Bank of the Philippines through its One-Town-One-Product (OTOP) window facilitated by the DTI. DTI has also been helping Sammy in market promotion, product development, packaging and labeling. The Department of Science and Technology, on the other hand, has made available its various programs and services, including funding Sammy’s fish processing equipment. The canning plant is not just exclusively for Ocean Bounties. Opening the facility to other local marine processors at reasonable rates, Sammy said is his way paying it forward. Just recently, Sammy also opened his own seafood market and restaurant across the busy public market.

The buck doesn’t stop here Despite the challenges, Sammy is not hesitant about expanding his business. He sees himself as one of the major marine product processors and exporters in the Caraga Region. He will continue to deliver bounties from the oceans to the countless kitchen tables in the land

through the canning of local marine-based delicacies for the local and export market. Eventually, Sammy dreams to dive into the franchising of Ocean Bounties.

Stench no more The man who used to be perpetually shadowed by the smell of the fish, who roamed the public markets with sore feet and worn-out slippers sweating under the heat of the sun, is now aboard a sports utility vehicle – free from dust, free from heat. Small comforts enjoyed by a hard working, honest, and God-fearing man. Nowadays, Sammy is among the big buyers of an equipment store where he used to work as an errand and utility worker. His former boss failed to recognize him. The smell of the fish stench is gone along with the worn out slippers. Also gone is the innocent look in the eyes of a young boy who often wondered how he could become a fish trader someday. Sammy had become a man whose reputation elicits a double take, not because of the stench of the fish, but because of the deep respect and admiration for his legendary honest hard work, fearlessness, persistence, and perseverance. Sammy Cambaya dreamt and lived it.

Ocean Bounties Fresh and Frozen ProductsSammy M. Cambaya

General Manager, Proprietor888 Diez Street, Surigao CityTelefax +63 (86) 826-1265

Mobile +63917521180Email [email protected]

www.oceanbounties. com.ph

DTI Caraga Regional OfficeBrielgo O. Pagaran, Regional Director

5th Floor, D & V Bldg.,JC Aquino Avenue, Butuan City

8600, PhilippinesTel. No. +63 (85) 341-2293; 342-5615

Fax No. +63 (85) 815-1271Email : [email protected]

DTI- Surigao del NorteCelestino Il. Negapatan, Provincial Director

2nd Floor, Tamayo BuildingCapitol Road, Surigao City

8400 PhilippinesTel. No. +63 (86) 826-7730Fax No. +63 (86) 826-2373Email : [email protected]


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The one-day business road show blazed trails all over the archipelago drawing thousands of participants of diverse persuasions – students, institutions, micro and small entrepreneurs, professionals, the seniors, and the simply curious. Known experts and successful entrepreneurs shared ideas and tips, emanating from their individual gainful experiences, to a motley collection of business-inclined individuals from all corners of the country. The panel of experts talked about finding business opportunities, choosing the market for business, product development and innovation, marketing techniques, and micro-financing options. Speakers from private and government agencies joined the panels.





The free-of-charge business caravan’s first stop was Davao Region as early as December last year wrapping up in General Santos City in the Soccsksargen Region in May drawing the largest crowd of more than 1,200. Northern Mindanao also drew one of the biggest with about 850 attending in Cagayan de Oro City. Products and services booths—book sales, OTOP products, and Nerbac desks, added color to the open invitation event. The NegoSem is a 20-episode seminar organized by the Philippine Center for Entrepreneurship Foundation, Go Negosyo, and the Department of Trade and Industry, in cooperation with Landbank of the Philippines, National Livelihood Development Corporation, and Presidential Social Fund. The BPI Family Savings Bank, PLDT SME Nation, and Smart Communications also supported the event.




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OTOPreneur



Ordering OTOP products online? How cool is that? That means, what every Juan and Juana from all over the world has to do is to access the OTOP website, order online, and wait for the product

to be delivered at their doorstep.

Buyers can now access and order products from the http://otopphilippines.org/ link. The website is a byproduct of

the public-private partnership between the DTI’s Regional Operations and Development Group and e-commerce firm

iNegosyo http://inegosyo.com/ a web portal that brings together buyers and sellers.

Virtual marketing makes the tasks of marketing products and services a lot easier and the same time allows entrepreneurs to

reach a wider market at the least cost.

Aside from being a cost-effective tool to promote products online, the OTOP website also allows efficient conduct of

business matching between entrepreneurs and their potential buyers whether local or foreign. About ten OTOP enterprises

have already joined.

Join the OTOP virtual entrepreneurs.

Visit and register at http://otopphilippines.org/ now!




OTOPreneur

Cordillera Administrative Region Joel Arthur Tibaldo (RO-CAR), Glory P. Lugao (Apayao), Joel T. Fagsao (Mountain Province), Ralph B. Altiyen (Benguet), Maria Cecilia T. Baral (Kalinga), Imelda D. Kimayong (Ifugao) REGION 1 Ilocos Region Amelia E. Galvez (RO), Victoria A. Ordoño (La Union), Perry B. Agbayani (Ilocos Norte), Ramil T. Avelino (Pangasinan) REGION 2 Cagayan Valley Zenaida B. Quinto (RO), Elmer A. Agorto (Isabela), Victor U. Urian (Cagayan), Ellerie Mila G. Ramel (Nueva Vizcaya), George O. Colebra (Quirino)

NCR Princess Fatima T. Parahiman (RO) REGION 3 Central Luzon Wilfred Tristan L. Carbonell (RO), Pacita P. Bandilla (Aurora), Teresita E. Magtanong (Bataan), Evangeline S. Bulda (Zambales), Lunabelle A. Sison (Tarlac), Richard V. Simangan (Nueva Ecija), Ma. Lourdes T. Dizon (Bulacan), Eileen E. Ocampo (Pampanga) REGION 4-A Calabarzon Charlie S. Dajao (RO), Maria Carmen G. Garcia (Batangas), Sharon F. Dioco (Rizal), Pablito C. Budoy (Quezon), Marcelina B. Alcantara (Laguna), Lorena M. Pangilinan (Cavite)

REGION 6 Western Visayas Ruby M. Melliza (RO), Deana G. Ruiz (Aklan), Roger S. Petinglay (Antique), Esterlita M. Baddong (Iloilo), Melecia U. Pait (Guimaras), Ken Queenie R. Cunada (Capiz), Floressa May V. Castro (Negros Occidental) REGION 7 Central Visayas Jojisilia R. Villamor (RO), May Liza T. Sevilla (Negros Oriental), Bebelyn T. Borongan (Siquijor), Merle P. Falcon (Cebu), Lucille C. Autentico (Bohol) REGION 9 Zamboanga Peninsula Lowell S. Vallecer (RO), Roger D. Sarsalejo (RO), Jassim N. Abdurasad (Zamboanga Sibugay), Miriam Fe E. Jacinto (Zamboanga del Sur), Estrella M. Roda (Zamboanga del Norte), Maria Carmen R. La Guardia (Isabela City)



e often engage with local entrepreneurs as part of our work. But writing about the journeys of our successful entrepreneurs is incredibly inspiring

and insightful. What make them stand out from the rest are their amazing narratives of hard work, persistence, faith, and determination. Their stories can be your story too.”

The OTOPreneur Magazine weaves together the talents and expertise of selected staff from the Department of Trade Industry in the Philippines. They are people in the ground who directly engage with the subjects of this magazine — the homegrown business partners. To prepare them for this big work, a corps of staff chosen from all over the regions and provinces participated in a training series running from April to May 2010. All stories in this issue is their first collection.


OTOPreneur

REGION 10 Northern Mindanao Carmel D. Mabao (RO), Conrado C. Dy (Misamis Oriental), Julius C. Verdadero (Misamis Occidental), Famelah Racquel D. Villanueva (Bukidnon), Elvira G. Redublado (Lanao del Norte), Nelson T. Catubig, Jocelyn N. Rosales (RO) REGION 11 Davao Region Jenny Grace M. Mendoza (RO), Zaida Fe I. Ramiro (Davao Oriental), Amelita L. Pastias (Davao del Sur), Patrick Kim B. Evangelio (Compostela Valley), Julian B. Loquinario (Davao Nerbac) REGION 12 Soccsksargen Region Leonard Joel V. Flores (RO), Arnel V. Sayco (South Cotabato), Evangeline Farnazo (Sarangani), Babylon F. Maganaka, Jr. (Sultan Kudarat) REGION 13 Caraga Region Mary Grace M. Sanchez (RO), Evelyn C. Arlan (Surigao del Norte), Cristina R. Dedel (Agusan del Norte)

REGION 4-B Mimaropa Region Joel B. Valera, Catalina Layni V. Olmos, Karen A. Invento REGION 5 Bicol Region Jocelyn R. Berango (RO), Agnes Villafuerte-Fanoy (Camarines Norte), Jay Percival S. Ablan (Camarines Sur), Ma. Irene M. Andes (Catanduanes), Victor Emmanuel S. Castro (Albay), Senen C. Malaya (Sorsogon), Criselda D. Muega (Masbate) REGION 8 Eastern Visayas Jorge D. Modesto (Biliran), Claire O. Diaz (Northern Samar), Isidro Aporto (Eastern Samar), Ariel D. Donceras (Western Samar)





them better. The eight-hour trip to Cagayan de Oro by bus was indeed all worth it! Well,

should the team decides to hold another workshop (on photography, perhaps), I’m still super willing to take a very long bumpy ride

again even if it would take me a week just to get to the venue :-)”

Jenny Grace MendozaDavao City, Reg 11

“This may seem like self-flagellation to most people, but I do enjoy communicating ideas

and information through various means, especially when I am relaying something that inspires people. I may still be struggling with

my writing but that made the experience all the more interesting and pleasurable.”

Joji VillamorCebu City, Region 7

“Putting things all together to come up with a creative but true story, one that mirrors

the lives of those who metamorphosed into successful ventures, is very rewarding. With OTOPreneur, we share Filipino ingenuity to

the world. Kudos to everyone!” Julius Verdadero

Misamis Occidental, Region 10

“The task of writing made my head spin. I shivered at the thought of how to make it interesting. What should be the focus of my story? Those were my ‘alibis’ but with the deadline hanging over my head really

sparked my imagination. Making ways for our entrepreneur to shine is itself a rewarding

experience.” Lina Alcantara

Laguna, Calabarzon

“Writing a story that will pass the standards of our trainers is no joke but I took the challenge, anyway. I hope I wasn’t a big

headache to the editor. Ha ha ha!”

Richard V. SimanganNueva Ecija, Region 3

“With the mood swings associated with pregnancy, and the concentration and patience needed

for being a writer, I really thought they don’t mix well. But the entire experience proved me

otherwise. Developing the story for our SME was like nurturing a life in the womb… both required

passion and dedication. Fahmela Racquel D. Villanueva

Bukidnon, Region 10

“It is always exhilarating to hear stories of determination, hardship, and eventual

triumph. But to hear it first hand and be the one to share it to the world is certainly a thrill!. I am glad that we are able to share the story of

our entrepreneurs to the OTOPreneur readers.”

Princess Fatima ParahimanMetro Manila, NCR

“Reading the maiden issue of OTOPreneur magazine made me proud of our successful MSMEs. But to write one for the June issue

makes me even more proud having the chance tell the world that Antique, too, has

successful entrepreneurs nurtured and ably assisted by DTI. In my own small way,

I have made myself an instrument to let everybody know that we are creating small

ripples in our province that when put together form tidal waves of success. More power!”

Roger PetinglaySan Jose, Antique, Region 6

“Writing success stories is a very promising experience. It taught me a lot of great things

about creative writing: the style, content, photographs, conduct of interview and

research of the subject and a lot more. The experience moulded me to be more expressive,

imaginative, and innovative. Thanks for the opportunity.”

Amy GalvezLa Union, Region 1

“The workshop fired me up and am ready to capture more success stories and writing


OTOPreneur


OTOPreneur



What is OTOP Philippines?

One Town, One Product (OTOP) Philippines is a priority project of her Excellency President Gloria Macapagal-Arroyo to promote entrepreneurship and create jobs. Through OTOP, local chief executives of each city and municipality take the lead in identifying, developing, and promoting a specific product or service which has a competitive advantage.

OTOP Philippines supports micro, small and medium enterprises (MSMEs) to manufacture, offer and market distinctive products or services through the use of indigenous raw materials and local skills and talents.

What assistance is provided in OTOP Philippines?

OTOP Philippines offers a comprehensive assistance package through a convergence of services from local government agencies and the private sector. This includes:

Business counselling

Skills and entrepreneurial training

Product design and development

Marketing

The Medium Term Development Plan (MTPDP) 2004-2010 outlines the dual strategies of (a) product development through OTOP, and (b) credit provision through SULONG (SME Unified Lending Opportunities for National Growth) to support three million entrepreneurs and generate 6-10 million jobs.

Who may avail of this assistance?

The program targets MSMEs with an asset of not more than P100 million, which account for 99 percent of business establishments.

Who supports OTOP Philippines?

The LGUs identify the specific product or service and make available all forms of assistance. The Department of Trade and Industry advocates the program’s ideals and provides the necessary support for the LGUs in the implementation together with the


OTOPreneur

following key agencies:

• League of Municipalities

• League of Cities

• League of Governors

• National Livelihood Support Fund (NLSF)

• Philippine Chamber of Commerce and Industry

• PhilExport

• Philippine Center for Entrepreneurship

• Philippine Business for Social Progress

• DOTC/Transportation Office

• Department of Education

• National Economic Development Authority

• Department of Agriculture

• Department of Environment and Natural Resources

• Department of the Interior and Local Government

• Department of Science and Technology

• Department of Tourism

• Technical Education and Skill Development Authority

• Philippine Information Agency

• Department of Labor and Employment

• Small Business Corporation

• Development Bank of the Philippines

• Landbank

These agencies work hand in hand with other government offices and the private sector to sustain the program.

OTOP Program Management OfficeDTI-Regional Operations Group

7/F New Solid Building357 Sen. Gil Puyat Avenue, Makati City,

Philippines Tel: (63) (2) 890-4684, 895-3582Fax: (63) (2) 890-4389, 890-4685


Engr. Merly M. CruzUndersecretary, DTI-RODG

7th Floor New Solid Building357 Sen. Gil J. Puyat Avenue, Makati City

Tel. No. +632-890-4697Fax No. +632-890-4685

[email protected]

http://otopphilippines.org/

Contact DTI Regional or Provincial Offices nearest you.






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The Export Pathways Program provides export assistance through a systematic approach, providing interventions at every stage of an exporter’s growth. Using the Value Chain Approach, Industry Clustering, and Sub-contracting it will ensure a stronger and more dynamic export industry. Such dyamism would bea tool for the regions to nurture SMEs with potential to become exporters. The Export Pathways Program will be enhanced and reinforced by the Regional Interactive Platform for Philippine Exports or RIPPLES

by the Bureau of Export Trade Promotion.

Maitum, Sarangani Shores Photo by Omar Gallinero
Front: DTI OTOP product Back: Bangsi Festival, Sarangani

Homegrown business partners in the countryside

JUNE 2010 ISSUE

Documents

OTOPreneur June2010 Edition