Seed of Hope - Revised - Millettia Pinatta Farming

8/8/2019 Seed of Hope - Revised - Millettia Pinatta Farming

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MILLETTIA PINNATADIVERSIFIED FARMING


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FOREWORD AN APPEAL TO HUMANITARIAN DONORS

This project proposal owed its birth from the miserable condition of the poorupland farmers and marginalized fishermen in many of the rural villages in theProvince of Palawan, Philippines, that reveals this obvious reality

The poor, comprising the majority of the population, becomes aburden to societybecause of inequity of opportunitiesand thelack of resources to improve their quality of life.

From this sad experience, a beautiful idea was born empower the poorby providing them opportunity to develop their potentials andutilize the resources of their communities to make them productiveand responsible citizens, and become instrument of progress.

The poor upland farmers have been practicing slash and burn farming forgenerations which is very destructive to environment. Millettia Pinnatadiversified farming is the answer to these critical social problems: providinglivelihood for the poor, and protecting the environment from further degradation.

This is the reason why we arepublishing this in the Web,hoping that

we cantouch the hearts and minds of those who have morein life, to share their blessings with those who have less, toempower the poor and free them from economic, social,intellectual and spiritual bondage.

We have this beautiful idea we have our lands and we provide labor but welack the funds to start this project that can change our lives. Please help us

THE PALAWAN UPLAND FARMERS FEDERATIONPROVINCE OF PALAWAN, PHILIPPINES

Federico N. Virgo, Jr.Organizer/Proponent


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PROJECT CONCEPTMILLETTIA PINNATA DIVERSIFIED FARMING

FOR SUSTAINABLE LIVELIHOODRENEWABLE AND CLEAN SOURCE OF ENERGY

AND ENVIRONMENTAL PROTECTIONI - RATIONALE:

Thepoor,comprising the majority of the population, becomes aburdento society because of inequity of opportunities to improve theirquality of life.

Thisprojectaims toempower the poorby givingthem opportunity

to develop their potentials and utilize the resources of theircommunities to make them productive and responsible citizens andcontribute to the progress of society.

II - BACKGROUND:The province of Palawan has a land area of l,489,655 hectares; brush landsand grasslands account for 337,129 hectares*. These areas are uplandusually at the foot of the tropical forest, subjected to kaingin by uplandfarmers, and could be made available for farming. Many of these farmers

have land titles, others have tenural instruments and stewardship contracts (3to 5 hectares each), that give them the right to develop their respective areas

productively. Agricultural areas accounts for 205,405 hectares, a portion ofwhich may also be used for farming, on option of the farmers. * land cover PCSD(PTFPP report map on land cover)

Total land area that can be used for Millettia Pinnata farming is more thanhalf million hectares or a little more than 30% of the total land area of thewhole province of Palawan: brush lands and grasslands account for 337,129

hectares, plus agricultural areas of 205,405 hectares or a total of 542,534hectares.


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III PROJECT BRIEFPROJECT TITLE Millettia Pinnata Diversified Farming

LOCATION Province of Palawan, Philippines

TARGET AREASUnproductive rolling upland areas, particularlydenuded and remnants of slash and burn farming onthe mountainsides

PILOT AREA 200 hectares as model 600 hectares for 3 years

BENEFICIARIES Upland farmers and marginalized fishermen

PROPONENT The Palawan Upland Farmers Federation

PROJECT COST $1.25 Million USD from humanitarian donors

IV - VISION:

Empowered people happily harnessing and protecting thenatural resources of their communities for livelihood, in theprocess making them truly free from economic, social,intellectual and spiritual bondage.

V - MISSION:

To empower the poor by providing opportunities toimprove their quality of life; cultivate the total developmentof a human person: physical, emotional, intellectual andspiritual well-being - healthy in body, mind and spirit, witheconomic freedom; and fulfill the universal commandmentof love: Love God above all and love your neighbor asyourself, without regard to race, creed, color and religiousbelief.


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VI - OBJECTIVES:

5.1. Provide sustainable livelihood to upland farmers to improve theirquality of life; and empower them by providing opportunities for

growth and free them from economic, social, intellectual and spiritualbondage.

5.2. Stop environmental destruction; enhance and protect the naturalresources from further degradation.

5.3. Provide alternative, renewable and clean source of energy to minimizethe countrys dependence from oil importation.

5.4. Provide free social services by using the proceeds for social projectsdesigned to abate the miseries of the poor, primarily the setting up ofwater system to every home, solar system for areas not reached bypower distribution, free medical care and skills training center andorphanage.

VII ACTION PLAN

6.1. Fund sourcing - the Palawan Upland Farmers Federation, hereinafter referred to asthe Federation shall source funds from humanitarian Donors who believe in our

aspirations.

6.2. Organize the Farmers into Cooperatives using their lands and providing labor for theproject as their counterpart.

6.3. Implement and manage the project in accordance with the principles and processesjointly approved by the Donor and the Federation.

6.4. Train and empower the farmers to become knowledgeable, responsible, and inspiredworkers by providing training on transfer of technology, family life program, moralrecovery and spiritual enlightenment. Healthy workers, both mind and body, are the

guarantee for the success of this endeavor.

6.5. Link up with agencies and organizations involved in biofuel and energy ventures fora comprehensive development of this project.


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VIII - STRATEGY:

In a nutshell, our strategy is to empower the poor by providing them

opportunity to develop their potentialsandutilize the resourcesof their communities to make them productive and responsiblecitizens, and become instrument of progress.

Many ventures involving the poor were unsuccessful because

investors failed to empower them; instead they used the poor astools for their business rather than as equal partners fordevelopment.

The initial capital provided for farm in-puts and other needs of the family will

serve to inspire and actualize their dreams and aspirations, andwill energize productivity.

The financial in-puts will be reinforced with continuous trainingson farming technology, literacy, health care, family life and moral recovery

program for the total development of a human person: physical,emotional, intellectual and spiritual well-being; healthy in mind, bodyand spirit, with economic freedom.

Continuous training and learning, hard work and dedication, family and socialresponsibility, are indispensible elements for success and empowerment.

As partners, and with the financial assistance given to them, the poor are

expected to work diligently because they own their farms and arenot merely laborers; the degree of their economic growth is in theirhands - the driving force that assures success!


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IX PROJECT DESCRIPTIONMillettia Pinnata diversified farming, particularly in the upland areas to provide

sustainable livelihood to the poor upland farmers and marginalized fishermen,

while enhancing and protecting the environment, and providing alternative,

renewable and clean source of energy for the country.

Diversified farming with 50% - 75% of the area in-between Pinnata plantation will

be planted for food crops that complement and would not conflict with Pinnata,

like, cassava, sweet potatoes, watermelons, peanuts, legumes to augment the

income of the farmers. When the trees are already matured, some areas may be

used for cattle raising to control the grasses and weeds and at the same time

fertilize the soil with their droppings.

9.1. An Experimental and model farm of 200 hectares will be set-up in the 1styear as pilot area and also as demo farm where the farmers will learn theactual cultivation and harvesting techniques, in preparation for the

expanded plantation in the following years.

9.2.MILLETTIA PINNATA DIVERSIFIED FARMINGOn the first year of operation, each family-beneficiary of this Project withat least 3 working members, shall plant at least 250 trees (equivalent to 1hectare); on the second year, another 250 trees (1 hec). A family of 3working members shall limit their farm to 2 hectares to maintain good care and

productivity. Since the majority of the target areas are sloping and haveirregular contours, it is impossible to adopt a regular 6 x 6 meters interval;hence spacing of 5m x 6m, 4m x 7m or 5m x 7m may be adopted, give ortake, and still maintaining the 6m x 6m over-all interval which means 250 to275 trees per hectare.

On the flat areas, an 8 m by 5 m interval (8 m between rows and 5 m spacingbetween plants) will be adopted to adequately maintain intercropping of othercrops.

This would be the scenario for every Project Area in each village,undertaken by the Cooperative. In essence, one Project Area can operateindependently, so it would be easier to manage and identify problemsaffecting a certain area.


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9.3. Analysis: Millettia Pinnata Farming versus Upland Rice ProductionStudy of upland rain fed rice farming in Palawan, placed the produce toapproximately 40 to 60 cavans per hectare or an average of 50 cavans (onecavan is about 50 kilos of unmilled rice), or 2500 kgs per hectare.

If milled, this will translate to 1,500 kgs rice (60% returns), at P30 per kg =P45,000, plus other benefits (rice grits, etc), say another P1,500, or a total ofP46,500 per hectare (about $1,000 USD). Rice production is tedious andneeds to be done yearly.

In Millettia Pinnata Diversified Farming, the major work is done on the firstyear, and only minimum work from 2nd year onwards; it would give the farmersan average income of P67,331.00 per hectare on the 5th year; P149,625($3,325.00 USD) on the 10th year, increasing up to the 15th year, and level off.

9.4.

MILLETTIA PINNATA AND ITS APPLICATIONS lifted from www.millettiaplantations.com)Millettia Pinnata is a deciduous legume tree that grows to about 15-25 meters inheight with a large canopy that spreads equally wide. The tree is well suited to intenseheat and sunlight and its dense network of lateral roots and its thick long taproot makeit extremely drought resistant and wind tolerant. The dense shade it provides, slowsthe evaporation of surface water, and its roots structures promote nitrogen fixation,which moves nutrients from the air into the soil. Withstanding temperatures slightlybelow 0 degrees Celsius and annual rainfall of 250mm to 250mm, the trees growswild on sandy and rocky soils, including limestone. It will grow in most soil typeseven with its roots in salt water.

The leaves are a soft, shiny burgundy in early summer and mature to a glossy, deepgreen as the season progresses. Flowering starts in general after 3-4 years. Croppingof pods and single almond sized seeds can occur by 4-6 years.

Small clusters of white, purple, and pink flowers blossom on their branches

throughout the year, maturing into brown seedpods.

lifted from www.bioenergysite.com lifted from: elpongam.comlifted from: www. millettiaplantations.com


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What makes a superior, more sustainable biofuel specie?

Millettia grows into a large tree and has a 10-meter taproot, thus creating asubstantial carbon sink. It is a nitrogen & carbon fixing leguminous tree capableof sourcing water and nutrients well down in the subsoil.

Millettia biofuel plantations can fix more carbon than is used in the productionof fuel - creating a truly "carbon negative" solution. Its nitrogen fixing qualitiesalso qualify the tree for plantation carbon credits.

Millettia is resistant to a wide range of adverse climatic conditions includingdrought, light frost, water logging, moisture stress and salinity. It thrives intemperatures from 0 - 50 degrees celcius. Millettia is tolerant of extremely poorsoil types and does not require prime arable land otherwise used for foodproduction.

Millettia trees at maturity regularly produce 800 - 1,000 kgs of seed per tree peryear. It easily surpasses plantation oil yield of other oil crops such as oil palmand jatropha with high oil content per seed (40-50%).

Millettia has a lifespan of 100 years with a known oil seed productive lifespanof 60 years. Its yield in a plantation environment continues to increase untilyear 15.

Millettia plantations can be managed by a smaller / unskilled workforce due tolower crop maintenance and harvesting requirements.

Millettia is a legume therefore minimizing irrigation and expensive fertilizerrequirements.

lifted from: www.talkingplants.blogspot.comlifted from: www. millettiaplantations.com


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Recommended planting rates of is 275 plants per hectare (2.5 acres) at 6m x 6mspacing.

Seed; Pod/shell Content:Each seed pod contains 6% oil and 94% seedcakeThe encased seed accounts for half the weight of each podThe seed itself consists of 44% lipid oil and 56% seedcake

Seedcake:The rich seed cake remaining after pressing the seed can be utilized as high qualitybiomass, organic fertilizer and animal stock feed.

Plantation PruningMulched pruning from Millettia Pinnata can be utilized as high quality biomass forenergy production, organic fertilizer, energy pellets etc.

Millettia Pinnata oil isenvironmentallysafe, cost-effective, renewable sourceof non-conventional energy and a substitute for diesel fuel and oils. (lifted from:www.millettiaplantations.com )

The diagram below shows the uses of Millettia Pinnata:

OIL = 25% SEEDCAKE = 75%

CONVERSION TO:

BiodieselLubricantsVarnish, candlesBio-glycerol for

PharmaceuticalsSoap making, etc

Direct use inCoking stovesOil lamps, etc.

PRODUCTION OF:

BiogasFertilizerAnimal Feeds

Briquettes, etc.

SEED PODS

50% seed & 50% shell

OIL EXPELLING FACILITY

Another special featureof Millettia Pinnata liesin its high level ofcarbon absorption fromthe atmosphere

reducing pollution.

MILLETTIA PINNATAPLANT/FARM


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The oil can be mixed up to 50% and used for tractors and oil engines. Thus,the seeds of the plant can be entirely taken by industrial unit for processingand conversion into bio-fuel. The cake can also be used after detoxificationas an animal feed. Another by-product, bio-glycerol, can be used forpharmaceuticals, soap making, etc. oil is also used for making candles, andvarnish and as lubricant, hydraulic oil etc.

9.5.Research Efforts ( lifted from: www.wikipedia.com )

The seed oil has been found to be useful in diesel generators and, along with Jatropha, it isbeing explored in hundreds of projects throughout India and the third world as feedstockfor biodiesel. It is especially attractive because it grows naturally through much of arid

India, having very deep roots to reach water, and is one of the few crops well suited tocommercialization by India's large population of rural poor. Several unelectrified villageshave recently used Honge oil, simple processing techniques, and diesel generators tocreate their own grid systems to run water pumps and electric lighting.

In 2003, the Himalayan Institute of Yoga Science and Philosophy as part of its BiofuelRural Development Initiative started a campaign of education and public awareness torural farmers about Millettia Pinnata in two Indian states. One of the Himalayan Institute'spartners developed a consistently high yield scion that reduced the time it takes to maturefrom 10 years to as little as three. To help the farmers in the transition from traditionalcrops to theMillettia Pinnata tree the Indian government has contributed over $30 million

in low-interest loans and donated 4.5 million kg of rice to sustain impoverished drought-stricken farmers until the trees begin to produce income. Since the project began in 2003over 20 million trees have been planted and 45,000 farmers are now involved.

In 2006, the Himalayan Institute began looking at locations in Africa to transplant theMillettia Pinnata tree. Initially they began in Uganda but due to the lack of infrastructureand growing desertification the project has been growing very slowly. They have alsobegun a project in the Kumbo region of Cameroon where conditions are better. Therehave been some suggestions that the Millettia Pinnata tree could be grown all the wayacross the continent as a way to prevent the encroachment of the Sahara.


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The University of Queensland node of the Australian Research Council Center forExcellence in Legume Research, under the directorship of Professor Peter Gresshoff, inconjunction with Pacific Renewable Energy are currently working onMillettia Pinnata forcommercial use for the production of Biofuel. Projects are currently focused onunderstanding aspects ofMillettia Pinnata including root biology, nodulation, nitrogen

fixation, domestication genes, grafting, salinity tolerance, and the genetics of the oilproduction pathways. Emphasis is given to analyzing carbon sequestration (in relation tocarbon credits) and nitrogen gain.

The Australian project has found significant public and commercial interest; for example,ORIGIN Energy and well as the Brisbane City Council, the Sunshine Coast Council, SEQCatchments, BioEnergy Solutions, and the University of the Sunshine Coast are exploringthe application of Millettia Pinnata for the production of ethical biofuels by sustainableharvesting of seeds from the legume tree. Scott et al (2008) published a valuable review ofMillettia Pinnata biofuel applications in Bioenergy Research vol.1, pg. 2-11.

While a food-for-fuel debate is raging over the use of edible plants to produce biofuels,scientists say a major untapped biodiesel source, the seed oil of the Millettia Pinnata tree,an inedible crop, is worry-free. A native of southeast Asia, the tree has proliferated inBrisbane because of its tenacity in tough conditions and its ability to provide shade.

The University of Queensland ARC Centre of Excellence for Integrative LegumeResearch, or CILR, is a world-renowned research network of plant scientists.

Centre director Professor Peter Gresshoff's team has begun work to establish the tree as aresource for Australia's nascent biofuels industry. And it could have a two-foldenvironmental benefit.

The tree can live for 100 years, all the time sucking in carbon dioxide while producing oilthat can displace carbon-belching fossil fuel. Professor Gresshoff says its hardiness meansit will grow on land not fit for food crops, and nitrate fertilizers are not essential during itsgrowth.

Research aims to isolate elite varieties of the plant. Professor Gresshoff said 12ha ofMillettia Pinnata planted near Caboolture should, in two or three years, give insight intohow its oil handles. The tree is fast growing but needs to be five or six years for a properharvest using a mechanical shaker.

Mr. Muirhead said a key attraction of Millettia Pinnata was its potential as a biofuelfeedstock that can be grown in extreme terrain, such as disused mine sites.

We think there is great potential to commercialize when we have the elite genotype. Wewould focus on areas considered degraded land and that's potentially a vast area," he says.


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As an example, Comalco has ex-bauxite-mine land near Weipa that has to be regeneratedbefore being handed back to the local Aboriginal community.

"Planting Millettia Pinnata for biodiesel there would create a residual income andworkplace for the indigenous community and potentially give the likes of Comalco theopportunity to tackle their greenhouse gas emissions," Mr Muirhead said.

Grazers could use a Millettia Pinnata byproduct as a cattle feed supplement. The leftoverportion of Millettia Pinnata seeds contains up to 30 per cent protein and can be fed tocattle, sheep and poultry.

9.7. What is Bio Diesel? Quoted from: www.biodiesel.org

The concept dates back to 1885 when Dr. Rudolf Diesel built the first dieselengine with the full intention of running it on vegetative source. He first displayed

his engine at the Paris show of 1900 and astounded everyone when he ran thepatented engine on any hydrocarbon fuel available.

The process of converting vegetable oil into biodiesel fuel is called Transesterification and is less complex than it sounds. Chemically, this means taking atriglyceride molecule, or a complex fatty acid, neutralizing the free fatty acids,removing the glycerin, and creating an alcohol ester. This liquid is then mixed intothe vegetable oil. After the mixture has settled, Glycerin is left on the bottom andmethyl esters, or biodiesel is left on top and is washed and filtered. The finalproduct, Bio-Diesel fuel, when used directly in a Diesel Engine will burn up to

75% cleaner than mineral oil Diesel fuel.

Recent environmental and economic concerns have prompted resurgence in theuse of biodiesel throughout the world. This was covered by the Kyoto Protocolunder the United Nations Framework Convention on Climate Change (UNFCCC),which was adopted at the Earth Summit in Rio de Janeiro in 1992. Based on theagreement, industrialized countries commit themselves to reducing theircollective emissions of six key greenhouse gases by at least 5%. These sixgreenhouse gases are carbon dioxide, methane, nitrous oxide, sulfur hexafluoride,hydro fluorocarbons (HFCs) and perfluorocarbons (PFCs). Each countrys

emissions target must be achieved by the period 2008-2012.


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Effects on the environment of biodiesel: Quoted from: www.biodiesel.org

The use of biodiesel reduces air pollution; it has zero sulfur emission.

Tests by the United States Environment Protection Agency (USEPA) haveshown that the use of biodiesel almost completely eliminates lifecycle carbondioxide (CO2) emissions. It is less neutral in its net addition to globalwarming because whatever CO2 released in combustion is alreadysequestered when growing the crop. Indeed, plantations sequestering CO2would acquire an additional attraction as sources of CO2 emission creditsthat could be purchased by countries that are unable to reduce their CO2emission reduction targets.

Cleaner Air: Quoted from: www.biodiesel.org

Biofuels burn more cleanly than gasoline and diesel. Using biofuel meansproducing fewer emissions of carbon monoxide, particulates, and toxicchemicals that cause smog, aggravate respiratory and heart disease, andcontribute to thousands of premature deaths each year.

Less Global Warming: Quoted from: www.biodiesel.org

Biofuels contain carbon that was taken out of the atmosphere by plants andtrees as they grew. The Fossil fuels are adding huge amounts of storedcarbon dioxide (CO2) to the atmosphere, where it traps the Earth's heat likea heavy blanket and causes the world to warm. Studies show that biodieselreduces CO2 emissions to a considerable extent and in some cases almostnearly to zero.


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X IMPLEMENTING STRATEGIES:Roles of the Federation, the Cooperatives and Farmers- the Federationand the Farmers, through the Cooperatives, shall jointly establish arelationship for a successful outcome of this project to include, but not limited

to...10.1. Roles of the Federation:

10.1.1. The Palawan Upland Farmers Federation, hereinafter referred to as theFederation shall source funds from humanitarian Donors;implement and manage the project in accordance with the principles andprocesses contained in this concept paper.

10.1.2. Organize the Farmers into Cooperatives using their lands and providinglabor for this project as their counterpart.

10.1.3. Set-up Management Office and Processing Plant strategically located inthe project area, an operating center, to serve as office, staff house, trainingcenter, warehouse and processing plant for the seeds.

10.1.4. Train and empower the farmers to becomeknowledgeable, responsible,and inspired workers by providing training on transfer of technology,family life program, moral recovery and spiritual enlightenment. Healthy

workers, both mind and body, are the guarantee for the success of thisendeavor.

10.1.5. Provide loan financing without interest to the Farmers through theCooperatives for farm in-puts and implements, and sustenance of thefarmers to be amortized beginning on the 5th year onwards.

10.1.6. Link up with agencies and organizations involved in biofuel and energyventures for a comprehensive development of this project.

10.1.7. Undertake a Memorandum of Agreement (MOA) by and between theFarmers and the Federation, to cover all aspects of the project: use offarmers lands, management, loan financing, production, and processing ofbiofuel, etc:


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Provisions should include tenure of use of lands of the farmers for atleast 25 years, renewable on option of both parties;

Fund security measures to see to it that Federations funds are usedwisely and solely for the purpose it is intended;

Loan provision and amortization scheme;

10.2. Roles of the Cooperatives and Farmers:10.2.1. The Cooperatives - under the guidance and supervision of the

Federation, implement and do the actual works in the farms through its

members who shall do the day-to-day work in the fields.

10.2.2. Use their lands andprovide labor as counterpart for the project; sell theirproducts (seeds) only to the Federation.

10.2.3. Set-up Multi-purpose Center at the project site to serve as OperationCenter: office, meeting area and temporary warehouse for the seeds,before transfer to the Processing Plant.

10.2.4. Attend all trainings and activities designed for the holistic developmentof the members: physically, emotionally, intellectually and spiritually.

10.3. Training Program - this component will develop Farmers into well-rounded healthy individuals, (physically,intellectually and socially healthy)both for their benefits and for that of the Project. Pursuing economicupliftment alone, without developing the members into well-rounded healthyindividuals, will not ensure success in a Cooperative undertaking. Inessence, we provide food for the stomach, touch the heart so we can

inspire and educate the mind, nurture the healthy body and purify thespiritto develop healthy and empowered workers for the Project.


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Technology of Participation (TOP) technique will be used in the conductof training. Training coverage is multi-faceted to include among others:(see manual or course designs of training).

10.3.1.Livelihood Training - training on farming to include all aspects ofcultivation and post-production, with special emphasis on slopingagricultural land technology (SALT). Enhancement, protection andcare of environment will also be included.

Training would include, seed quality testing, establishing a healthynursery, nursery management, setting up large plantations,cultivation methods, disease diagnosis and management methods, typeof pruning, harvesting and storage, etc.

10.3.2. Literacy, Health Care, Family Life Program and Moral RecoveryTraining Program - education as indispensable tool for the successand well-being of a person. Provide basic health care, like personalhygiene, sanitation and proper nutrition; responsible parenting; goodcitizenship, social responsibility and spiritual upliftment, etc.

Total development of a human person: physical, emotional,intellectual and spiritual well-being; healthy in mind, body and spirit,with economic freedom, and fulfill the universal commandment oflove: Love God above all and love your neighbor as yourself, withoutregard to race, creed, color and religious belief.

Training and continuous learning, hard work and dedication, family andsocial responsibility are indispensible elements for success.

10.4.Production Schemeand Risk Analysis - Farmers to provide lands forMillettia Pinnata farming and do the actual tasks of planting and cultivatinguntil harvest and ready for marketing. Sell their products (seeds) to theFederation only, for processing to biofuel.

Federation, through the Cooperatives, shall supervise each particular farm toensure good production.


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10.4.1.Production scheme each family with 3 to 5 members shall plant at leastone hectare (250 trees) in the first year, and the same number of trees forthe second year; a family of 3 working members shall limit their farm to 2hectares to maintain good care and productivity.

Each family shall have backyard gardens for vegetables and livestock forthe nutrition needs of the family.

Diversified farming with 50% - 75% of the area in-between Pinnataplantation will be planted for food crops that complement and would

not conflict with Pinnata, like, cassava, sweet potatoes, watermelons,

peanuts, legumes to augment the income of the farmers. When the

trees are already matured, some areas may be used for cattle raising tocontrol the grasses and weeds and at the same time fertilize the soil

with their droppings.

The ideal planting starts in June when the rainy season begins.Cultivation follows until harvest the following year; work is lessercompared to other crops.

10.4.2.Production Risk Analysis:Production involves a number of factors that would determine thesuccess or failure of the project: people, land security, soil quality,weather, quality of planting materials, planting and cultivation, post-harvest facilities, financing, project implementation and managementscheme.

People the most difficult to manage and crucial component of theproject. People should be provided with training and basic needs of thefamily for them to become productive and empowered. This is addressedin the training program outlined in paragraph 10.3. hereof;


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Land security the prospective Cooperative members who areoccupying the proposed area intended for this project have land titles ortenural instruments (3 to 5 hecs. each) that give them the right to developtheir lands productively. A 25-year agreement may be executed between

the individual members of the Cooperative and the Federation and willbe included in the MOA.

Soil quality the proposed area have been used by upland farmers forrice and corn production; and judging from the outcome of their producefor several years, these areas could very well suited for farming. PCSDdata (prepared by the PTFPP) indicates that the area covered by thisproposal has good soil cover.

Weather Palawan has moderate climate and seldom visited by typhoon.Dry season usually occurs from February to May, but intermittent raincomes every now during this period. This kind of weather in Palawan canvery well suited for farming.

Quality of planting materials the proposal calls for a procurement ofhigh quality yield seeds from Australia. One box containing 25,000 seedscosts USD $845 including airfreight. However, the price is lesser if bigvolume is procured.

Post-harvest facilities multi-purpose center to serve both as CoopOffice and warehouse for seeds with drying facility. See Figure 1 Capital outlays).

10.5. Financing Schemeand Risk AnalysisDonor, through the Federation to provide loan financing to Farmers withno interest, payable on the 5th to 10th year and on a scheme to be determined

by the Donor, the Federation and the Cooperatives.

Risk Analysis as long as there is production, there is norisk on the loanrepayments of farmers, because amortization will be deducted beforepayments are made. As far as misuse of funds in the initial project


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implementation, this is addressed below:

10.5.1. Funds Security - in order to secure the funds, security measureswill be adopted to include among others:

The Cooperative shall open a joint checking bank account for thisproject. Signatories shall be the Coop President, the CoopTreasurer and one Board of Director to countercheck.

Loan releases shall be on a need basis, backed up by program ofworks and detailed expenses, properly evaluated by theCooperative Officers,approved by the Federation, and confirmedby the Donor.

Donor may designate an external audit team to monitor the project.

10.6. Marketing Scheme: - Federation shall buy the seeds from the farmersfor oil extraction; and the farmers shall only sell their products (seeds) tothe Federation. This will be included in a Memo of Agreement between thefarmers and the Federation.

The Government has the mandate to buy all biodiesel produced locally. It is

assumed that marketing of by-products would posed no problem since thereare several entities engaged on manufacturing that would need chemicalfrom by-products.

A scheme shall be developed to convert the biomass into:

a. Organic fertilizer to fertilize the farms;b. Animal feeds for hogs and cattle;c. Briquettes;d. Biogas, etc.


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XI - FINANCIAL ANALYSIS: PRODUCTION PROJECTIOINA FOR MILLETTIA PINNATA the average yield computed for 10 years ofproduction with 250 trees per hectare (6m x 6m) spaces; production per tree is basedon Australian model. (www.millettiaplantatiions.com)

Fig. 1 ESTIMATED PRODUCTION PER HECTARE WITH 250 TRESS TO THE 10TH YEAR.

ESTIMATED PRODUCTION PER HECTARE

YEAR OF OPNS 1st & 3rd yr 4th yr 5th yr 6th yr 7th yr 8th yr 9th yr 10th yr 11th yr 12th yr

NUM OF TREES 2nd yrs 250 250 250 250 250 250 250 250 250 250

KG PER TREE no prod'n 20 30 45 60 70 80 90 100 105 110

TON PER HEC yet 5 7.5 11.25 15 17.5 20 22.5 25 26.25 27.5

Fig 1 above shows a modest production estimate (30% or less of the Australian model

Fig 1-A This is the AUSTRALIAN MODEL estimate with 200 trees per hectare. Liftedfrom: www.millettiaplantations.com

ESTIMATED PRODUCTION PER HECTARE - AUSTRALIAN MODEL 200 TREES PER HECTARE

PRODUCTION 1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr 8th yr 9th yr 10th yr

KG PER TREE 0 0 60 100 160 200 240 280 320 360

TONS PER HEC 0 0 12 20 32 40 48 56 64 72

Fig 1 and 1-A above are comparisons of yield per hectare between this proposal and the Australianmodel from which this study is based.The estimate for this project is 20 kgs per tree on the 3rd year,

while 60 kgs per tree for the Australian model, etc. This is a minimum estimate as a precautionbecause Millettia Pinnata is still new in the biofuel industry.

Fig. 2

INCOME ESTIMATE FOR ONE (1) TON OF SEEDS

OIL BIOMASS TOTAL PAYMENT EXPENSES GROSS

LTRS $1.11/ltr KGS $66.66/ton REVENUE FARMERS 20% REVN INCOME

250 $278 750 $50 $327 $155 $65 $107

Fig 2 shows, one metric ton of good quality seeds with shell can produce 250 liters of oiland 750 kgs of biomass. The estimated economic benefits from one metric ton of seeds, are

as follows: oil = $278 (at $1.11 per liter; and biomass = $50 (at $66.66/ton) or a total revenue of$327 per ton. Payment to farmers is $155 at $0.15555/kg, plus $65 operation expenses estimated

to about 20% of the revenue, leaving a gross incomeof$107.


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SAFETY MEASURE IN THE PROJECTIONS

Before proceeding with the presentation of the production projection for this proposal,it is worthwhile to note that this projection is based on the Australian modelcontained in its website at www.millettiaplantations.com/ , and the research efforts

done by various organizations on Millettia Pinnata tree as alternative source of biofuel.These research efforts were lifted from www.wikipedia.com/. Worth mentioning are:

o Biofuel Rural Development Initiative by the Himalayan Institute of YogaScience and Philosophy in India.

To help the farmers in the transition from traditional crops to the MillettiaPinnata tree the Indian government has contributed over $30 million in low-interest loans and donated 4.5 million kg of rice to sustain impoverisheddrought-stricken farmers until the trees begin to produce income. Since the

project began in 2003 over 20 million trees have been planted and 45,000farmers are now involved.

o The University of Queensland node of the Australian Research CouncilCenter for Excellence in Legume Research, under the directorship ofProfessor Peter Gresshoff, in conjunction with Pacific Renewable Energy arecurrently working onMillettia Pinnata for commercial use for the productionof Biofuel.

The Australian project has found significant public and commercial interest; for example,ORIGIN Energy and well as the Brisbane City Council, the Sunshine Coast Council, SEQCatchments, BioEnergy Solutions, and the University of the Sunshine Coast are exploringthe application of Millettia Pinnata for the production of ethical biofuels by sustainableharvesting of seeds from the legume tree. Scott et al (2008) published a valuable review ofMillettia Pinnata biofuel applications in Bioenergy Research vol.1, pg. 2-11.

The Production projection in this proposal, though based on the Australian model, hasadopted a safety measure of only 30% production estimate as a precaution on themany elements that would influence the actual production like: climate, weather, soil,cultivation, farm in-puts, etc.

This proponent believes that the figures in the matrixes presented in the followingpagesare reasonable if the Australian model lives up to its claim.


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Fig. 3 PRODUCTION AND INCOME PROJECTION FOR 1 HECTARE

PRODUCTION AND INCOME PROJECTION FOR 1 HECTAREYEAR ESTMD OIL BIOMASS TOTAL PAYMENT OPERATION GROSS

OF PRODN TONS AMOUNT TONS AMOUNT REVENUE FARMERS EXPENSES INCOME

OPN TONS 25% 1.11/LTR 75% $66.66/TON $0.133 KG 20% REVN W/O TAX

2011 0 0 0 0 0 0 0 0 0

2012 0 0 0 0 0 0 0 0 0

2013 5.00 1.25 $1,387.50 3.75 $249.98 $1,637.48 $665.00 $327.50 $644.98

2014 7.50 1.88 $2,081.25 5.63 $374.96 $2,456.21 $997.50 $491.24 $967.47

2015 11.25 2.81 $3,121.88 8.44 $562.44 $3,684.32 $1,496.25 $736.86 $1,451.21

2016 15.00 3.75 $4,162.50 11.25 $749.93 $4,912.43 $1,995.00 $982.49 $1,934.94

2017 17.50 4.38 $4,856.25 13.13 $874.91 $5,731.16 $2,327.50 $1,146.23 $2,257.43

2018 20.00 5.00 $5,550.00 15.00 $999.90 $6,549.90 $2,660.00 $1,309.98 $2,579.92

2019 22.50 5.63 $6,243.75 16.88 $1,124.89 $7,368.64 $2,992.50 $1,473.73 $2,902.41

2020 25.00 6.25 $6,937.50 18.75 $1,249.88 $8,187.38 $3,325.00 $1,637.48 $3,224.90

Fig 3 above shows production and income projection ofone hectare of MillettiaPinnata. Production starts on the 3rd year, increasing yearly up to the 15th year andlevel off up to the maturity of about 30 years. Oil accounts for 25% of the totalweight and biomass accounts for 75%. Oil amounts to 84.773% of the total

revenue, while biomass is 15.327%.

Increase in production is expected up to the 15th year when it will level off to about27.5 tons per hectare. On the 5th year, one hectare produces 11.25 tons; on the 10thyear, 25 tons, which can produce 6.25 tons of oil and 18.75 tons of biomass,equivalent to $6,937.50 oil (at $1.11/ltr) and $1,249.88 biomass (at minimum priceof $66.66 per ton) or a total of $8,187.38 revenue per hectare. Less: $3,325.00 aspayment for seeds to farmers (at $0.1333 per kg), 20% of revenue ($1,637.48)foroperation expenses, leaving a gross income of $3,224.90 perhectare.


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Fig. 4 PRODUCTION AND REVENUE PROJECTION FOR 20 YEARS

PRODUCTION AND REVENUE PROJECTION FOR TWENTY (20) YEARS

YEAR AREA TOTAL AVERAGE OIL INCOME BIOMASS INCOME TOTAL

OF PLANTED PLANTED YIELD VOLUME AMOUNT VOLUME AMOUNT REVENUE

OPN YEARLY HECS TONS TONS $1.11 TONS $66.66/TON AMOUNT

2011 200 200 0 0 $0 0 $0 $0

2012 200 400 0 0 $0 0 $0 $0

2013 200 600 1,000 250 $277,500 750 $49,995 $327,495

2014 500 1,100 2,500 625 $693,750 1,875 $124,988 $818,738

2015 1,000 2,100 4,750 1,188 $1,318,125 3,563 $237,476 $1,555,601

2016 2,000 4,100 9,250 2,313 $2,566,875 6,938 $462,454 $3,029,329

2017 3,000 7,100 17,500 4,375 $4,856,250 13,125 $874,913 $5,731,163

2018 5,000 12,100 33,625 8,406 $9,330,938 25,219 $1,681,082 $11,012,019

2019 5,000 17,100 60,750 15,188 $16,858,125 45,563 $3,037,196 $19,895,321

2020 5,000 22,100 107,250 26,813 $29,761,875 80,438 $5,361,964 $35,123,839

2021 5,000 27,100 168,500 42,125 $46,758,750 126,375 $8,424,158 $55,182,908

2022 5,000 32,100 245,750 61,438 $68,195,625 184,313 $12,286,271 $80,481,896

2023 5,000 37,100 337,500 84,375 $93,656,250 253,125 $16,873,313 $110,529,563

2024 5,000 42,100 440,875 110,219 $122,342,813 330,656 $22,041,546 $144,384,358

2025 5,000 47,100 555,250 138,813 $154,081,875 416,438 $27,759,724 $181,841,599

2026 5,000 52,100 679,000 169,750 $188,422,500 509,250 $33,946,605 $222,369,105

2027 5,000 57,100 810,250 202,563 $224,844,375 607,688 $40,508,449 $265,352,824

2028 5,000 62,100 945,250 236,313 $262,306,875 708,938 $47,257,774 $309,564,649

2029 5,000 67,100 1,082,750 270,688 $300,463,125 812,063 $54,132,086 $354,595,211

2030 5,000 72,100 1,220,250 305,063 $338,619,375 915,188 $61,006,399 $399,625,774

THIS PROJECTION SHOWS that at the 20th year (2030), a total of 72,100hectares will be planted; total estimatedyield is 1,220,250 tons of seeds that canproduce 305,063 tons of oil and 915,188 tons of biomass with a total revenue of$399,625,774.00 USD.

Expansion may continue as there are available areas and interested farmers.Proceeds shall be used for social projects for the poor.


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Fig 5 REVENUE, EXPENSES AND INCOME PROJECTION FOR 20 YEARS

REVENUE, EXPENSES AND INCOME PROJECTION FOR TWENTY (20) YEARS

YEAR AREA TOTAL AVERAGE TOTAL EXPENSES GROSS

OF PLANTED PLANTED YIELD REVENUE FARMERS OPERATION INCOME

OPN YEARLY HECS TONS AMOUNT $133.33/TON 20% OF REVN W/O TAX2011 200 200 0 $0 $0 $0 $0

2012 200 400 0 $0 $0 $0

2013 200 600 1,000 $327,495 $133,330 $65,499 $128,666

2014 500 1,100 2,500 $818,738 $333,325 $163,748 $321,665

2015 1,000 2,100 4,750 $1,555,601 $633,318 $311,120 $611,164

2016 2,000 4,100 9,250 $3,029,329 $1,233,303 $605,866 $1,190,161

2017 3,000 7,100 17,500 $5,731,163 $2,333,275 $1,146,233 $2,251,655

2018 5,000 12,100 33,625 $11,012,019 $4,483,221 $2,202,404 $4,326,394

2019 5,000 17,100 60,750 $19,895,321 $8,099,798 $3,979,064 $7,816,460

2020 5,000 22,100 107,250 $35,123,839 $14,299,643 $7,024,768 $13,799,429

2021 5,000 27,100 168,500 $55,182,908 $22,466,105 $11,036,582 $21,680,221

2022 5,000 32,100 245,750 $80,481,896 $32,765,848 $16,096,379 $31,619,670

2023 5,000 37,100 337,500 $110,529,563 $44,998,875 $22,105,913 $43,424,775

2024 5,000 42,100 440,875 $144,384,358 $58,781,864 $28,876,872 $56,725,623

2025 5,000 47,100 555,250 $181,841,599 $74,031,483 $36,368,320 $71,441,797

2026 5,000 52,100 679,000 $222,369,105 $90,531,070 $44,473,821 $87,364,214

2027 5,000 57,100 810,250 $265,352,824 $108,030,633 $53,070,565 $104,251,627

2028 5,000 62,100 945,250 $309,564,649 $126,030,183 $61,912,930 $121,621,537

2029 5,000 67,100 1,082,750 $354,595,211 $144,363,058 $70,919,042 $139,313,112

2030 5,000 72,100 1,220,250 $399,625,774 $162,695,933 $79,925,155 $157,004,687

THIS PROJECTION SHOWS that at the 20th year (2030), a total of 72,100 hectares will be plantedwith estimated production of 1,220,250 tons of seeds with total revenue of $399,625,774.00. Expensesfor buying of seeds from farmers = $162,695,933.00 and $79,925,155.00 for operation expenses,leaving a gross income without tax of $157,004,687.00.

Gross income, being tax exempt, shall be used for humanitarian projects designed to provide freesocial services to the needy, primarily the setting up of water system to every home, solar system for

areas not reached by power distribution, free medical care and skills training center and orphanage.


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Figure 6

PROJECTION FOR THE USE OF INCOME FOR SOCIAL PROJECTS

YEAR TOTAL GROSS

RETURN

TO PROJECT WATER NATURAL ORPAHNAGE BALANCE

OF REVENUE INCOME DONORS EXPANSION SYSTEM HEALING SKILLS TRNG FOR OTHER

OPN AMOUNT W/O TAX 5% INCOME FARMS MEMBERS MED CNTR CENTER SOCIAL PROJS

SEED CAPITAL OF THE ASSOCIATION FROM DONORS- - - - - - - - - - $1,100,000

2011 $0 $0 $191,995 $0 $0 $908,005

2012 $0 $0 $590,018 $0 $0 $317,988

2013 $327,495 $128,666 $0 $237,152 $0 $0 $197,926

2014 $818,738 $321,665 $0 $327,152 $0 $0 $163,500

2015 $1,555,601 $611,164 $30,558 $567,152 $0 $0 $96,910

2016 $3,029,329 $1,190,161 $59,508 $1,000,000 $50,000 $0 $21,689

2017 $5,731,163 $2,251,655 $112,583 $1,500,000 $50,000 $300,000 $15,866

2018 $11,012,019 $4,326,394 $216,320 $2,000,000 $50,000 $1,500,000 $0 $15,143

2019 $19,895,321 $7,816,460 $390,823 $3,500,000 $50,000 $2,000,000 $500,000 $867,072

2020 $35,123,839 $13,799,429 $689,971 $2,500,000 $50,000 $7,000,000 $1,000,000 $2,619,242

2021 $55,182,908 $21,680,221 $1,084,011 $2,500,000 $50,000 $15,000,000 $2,000,000 $2,799,686

2022 $80,481,896 $31,619,670 $1,580,983 $4,000,000 $50,000 $20,000,000 $3,000,000 $4,568,163

2023 $110,529,563 $43,424,775 $2,171,239 $2,500,000 $50,000 $30,000,000 $4,000,000 $7,452,706

2024 $144,384,358 $56,725,623 $2,836,281 $2,500,000 $50,000 $40,000,000 $5,000,000 $11,138,857

2025 $181,841,599 $71,441,797 $3,572,090 $5,000,000 $50,000 $50,000,000 $5,000,000 $14,180,431

2026 $222,369,105 $87,364,214 $4,368,211 $3,000,000 $50,000 $70,000,000 $5,000,000 $11,867,789

2027 $265,352,824 $104,251,627 $5,212,581 $3,000,000 $50,000 $80,000,000 $5,000,000 $12,727,841

2028 $309,564,649 $121,621,537 $6,081,077 $5,000,000 $50,000 $90,000,000 $5,000,000 $14,760,5842029 $354,595,211 $139,313,112 $6,965,656 $3,500,000 $50,000 $100,000,000 $5,000,000 $21,466,021

2030 $399,625,774 $157,004,687 $7,850,234 $3,500,000 $50,000 $100,000,000 $5,000,000 $41,344,149

Figure 6 shows how the Federation spends the Gross Income for humanitarian projects for the poor.From the 5th onward 5% of the Gross Income shall be returned to the Donor as a show of

gratitude and for whatever humanitarian projects it desires. Tax exempt as proceeds will be used for

humanitarian projects.

The initial capital provided by the Donor ($1.25 Million) will have great significance for the poorupland farmers and the other people to benefit from social projects as shown above. From this amount

of $1.25 Million, exponential increase will be achieved, if the Australian model from which thisstudy is based lives up to its claim.


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B PRODUCTION PROJECTION FOR INTERCROPPING OF SELECTED CROPS TO

AUGMENT FARMERS INCOME WHILE CULTIVATING MILLETTIA PINNATA. Diversified

complementary farming increases income while it also rationalizes the farm and soil

management. Below are some of the crops that are good for intercropping:

1. Cassava in between the rows ( 8 m wide) of Millettia Pinnata, another 4 rows can be plantedwith cassava with an interval of 1.2 m between rows and 1 m between plants. In between the

100 m rows of Pinnata, 400 cassava hills can be planted (4 rows of 100 plants per row with 1 m

spacing). If each hill can produce 4 kgs of tubers, then 400 hills can produce 1,600 kgs; priced at

P7 = P11,200, less 30% expenses = P7,840, income. If only cassava is intercropped in one

hectare, this will bring the income to P86,240 per hectare for 11 rows.

2. Water melon - in between each row of Millettia Pinnata, there will be one row of watermelons with interval of 2 meters between plants. Each row of 100 m can be planted with 50

plants. If one plant can produce 3 fruits of 4 kgs each, then 50 plants will have total of 600 kgs,priced at P20 per kilo = P12,000, less expenses of 35% = P7,800 income. If one hectare is

intercropped only with water melon, the total income would be P85,800 for 11 rows.

3. Peanuts - in between each row of Millettia Pinnata, there will be four rows of peanuts withinterval of 3 plants per meter. Each row of 100 m can be planted with 300 plants or a total of

1,200 plants for 4 rows. If 3 plants can produce one kg, then 1,200 plants will have 400 kgs of

raw, unpeeled peanuts; with remaining 45% weight after peeling and drying, will have 180 kgs

net, priced at P50 per kilo = P9,000, less 25% for expenses = P6,750 income. For one hectare =

P74,250 for 11 rows.

4. Mung beans - in between each row of Millettia Pinnata (8 m by 100 m), 6 m by 100 m or 600sq.m. can be planted with mung beans. For every sq.m., 10 mung beans can be planted (one

plant per sq ft) or 6,000 plants. If 25 plants can produce 1 kg, then 6,000 plants can produce 240

kgs, priced at P40 per kg = P9,600, less 25% for expenses = P7,200 or P79,200 per hectare of 11

rows.

For every hectare (100 m by 100 m, for purposes of computation only), there will be 12 rows of

Millettia Pinnata at an interval of 8 meters. There will also be 11 intervening spaces between these

rows, which can also be termed as intervening rows for intercropping. In the next page is a

diagram of how these rows look like in the grounds:


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1 2 3 4 5 6 7 8 9 10 11

The numbers in the diagram signify the intervening rows (11 rows) that can be planted with

peanuts, mung beans, cassava and water melon or other plants suited for intercropping. The heavy

vertical lines signify the rows of Millettia Pinnata plants (12 rows) with interval of 8 m between

rows and spacing of 5 m between plants. The area used by Pinnata plants for every row would be 2

meters wide ( 1 meter for each side), leaving 6 meters as usable area for intercropping, or 6 m by

100 m per row or an area of 600 sq.m. or a total of 6,600 sq.m. per hectare of Pinnata farm. NOTE:

EXPENSES FOR LABOR are considered income of farmers as they are the ones tilling their farm.

ESTIMATED INCOME FOR ONE HECTARE OF PINNATA FARM ON THE 10TH YEAR WITH INTERCROPPING

INTERCROPPING ROWS PROD'N PRICE AMOUNT

OF SELECTED CROPS BELOW PLANTED KGS. PER KG.

1. WATER MELON - 1 Row 6th or center row 818 $0.44 $363.64

2. CASSAVA - 2 rows 5th & 7th 2,818 $0.16 $438.38

3. PEANUTS - 4 rows 3rd, 4th, 8th & 9th 1,091 $0.89 $969.70

4. MUNG BEANS - 4 rows 1st, 2nd, 10th & 11th 545 $1.33 $727.27TOTAL INCOME FOR INTERCROPPING $2,498.99

PLUS: INCOME FOR MILLETTIA PINNATA FARM ESTIMATED IN THE 10TH YEAR $3,325.00

TOTAL AVERAGE INCOME FOR ONE HECTARE OF PINNATA FARM WITH INTERCROPPING $5,823.99


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XII FINANCIAL PLAN: 200 HECTARES PER YEAR FOR 3 YEARS

FIRST YEAR OF OPERATION - EXPERIMENTAL AND MODEL FARM OF 200 HECTARES

CAPITAL OUTLAYS

PARTICULARS/DESCRIPTION AMOUNTConstruction of Management Office (office, staff house, training center) $30,000.00

Land acquisition (2 hectares) and ground improvements $5,000.00

One (1) unit 4 x 4 pick-up $33,000.00

Two (2) units motorcycles $3,000.00

Two (2) units Farm Tractors $50,000.00

Office equipment $5,000.00

Furniture and Fixtures $5,000.00

TOTAL CAPITAL OUTLAYS $131,000.00

MAINTENANCE AND OPERATING EXPENSES: 320 OPERATING DAYS AMOUNT

Fuel and Oil ( 2 tractors, 4 x 4 pick-up, 2 motorcycles) tractor @ 40/ltrs/day $33,744.00

service vehicle @ 10/ltrs/day; motorcycles @5ltrs/day =(320 days x 95 ltrs @P50)Spare parts and tires (pick-up = 4 tires; motorcycles 4 tires, tractors 4 tires) @ P7,000, $2,488.89

P20,000 & P1,000 each =

Electricity = 12 months x P3,000/month $800.00

Office Supplies $1,000.00

Traveling Expenses = 3 staff (study tour at Millettia Pinnata plantation in Australia $10,000.00

to validate data and learn actual planting and cultivating techniques)

Organizing and Traveling Expenses $5,000.00

Training Expenses: Transfer of technology and contiuous moral recovery training

(Team of 3 trainors) = meals - 3 pax @ P300/day for 200 days $4,000.00

stipend of trainors @ P500/day for 3 pax for 200 days $6,666.67

Communications - P30,000/month $8,000.00SUB-TOTAL $71,699.56

PERSONNEL COMPONENT AMOUNT

Five (5) Board of Directors - no salary (allowance only on monthly meetings) $2,500.00

Project Director @ $700/month $8,400.00

Field Operations Officer @ $500/month $6,000.00

Two (2) Field Supervisors @ $450/month $10,800.00

Finance Officer @ $500/month $6,000.00

Admin Officer/Programmer @ $450/month $5,400.00

Three (3) Drivers @ $350/month $12,600.00

Utilityman @ $300/month $3,600.00

SUB-TOTAL $55,300.00TOTAL OPERATION EXPENSES FOR FIRST YEAR $257,999.56

LOAN TO FARMERS AMOUNT

200 hectares @ $25/month for 12 months - for farm in-puts $60,000.00

TOTAL BUDGET FOR FIRST YEAR $317,999.56


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SECOND YEAR OF OPERATION - ANOTHER 200 HECTARES PLANTEDCAPITAL OUTLAYS

PARTICULARS AMOUNTConstruction Of Processing Plant $50,000.00

Ground preparation, drainage, etc $5,000.00

Two (2) units Oil Extraction Machines & accessories $250,000.00

One (1) unit Back-up Generator 50 KVA $50,000.00

One (1) Cargo Trucks 8-tonner $35,000.00

Two (2) units Seed Drying Machines $6,000.00

SUB-TOTAL $396,000.00

MAINTENANCE AND OPERATING EXPENSES: 320 OPERATING DAYS AMOUNT


service vehicle @ 10/ltrs/day; motorcycles @5ltrs/day =(320 days x 95 ltrs @P50)

Spare parts and tires (pick-up = 4 tires; motorcycles 4 tires, tractors 4 tires, truck - 6 tires) $3,822.22at P7,000, P20,000, P1,000 & P10,000 each =

Electricity = 12 months x P10,000/month $2,666.67






Communications - P30,000/month $8,000.00

SUB-TOTAL $69,899.56


Five (5) Board of Directors - no salary (allowance only on monthly meetings) $2,500.00Project Director @ $700/month $8,400.00




Admin Officer/Programmer @ $450/month $5,400.00

Four(4) Drivers @ $350/month $16,800.00



TOTAL OPERATION EXPENSES FOR SECOND FIRST YEAR $525,399.56

LOAN TO FARMERS - 400 hecs @$25/month for 12 months (1st and 2nd years) $120,000.00

TOTAL BUDGET FOR SECOND YEAR $645,399.56


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THIRD YEAR OF OPERATION - 200 HECTARES PLANTED - HARVESTING OF 200 HECTARESMAINTENANCE AND OPERATING EXPENSES: 320 OPERATING DAYS

PARTICULARS AMOUNT


service vehicle @ 10/ltrs/day; motorcycles @5ltrs/day =(320 days x 95 ltrs @P50)

Spare parts and tires (pick-up = 4 tires; motorcycles 4 tires, tractors 4 tires, truck - 6 tires) $3,822.22

at P7,000, P20,000, P1,000 & P10,000 each =

Electricity = 12 months x P10,000/month $2,666.67






Communications - P30,000/month $8,000.00



Five (5) Board of Directors - no salary (allowance only on monthly meetings) $2,500.00

Project Director @ $700/month $8,400.00




Admin Officer/Programmer @ $450/month $5,400.00Four(4) Drivers @ $350/month $16,800.00



TOTAL OPERATION EXPENSES FOR SECOND FIRST YEAR $124,399.56

LOAN TO FARMERS - 400 hecs @$25/month for 12 months (1st and 2nd years) $120,000.00

TOTAL BUDGET FOR THIRD YEAR $244,399.56

TOTAL BUDGET FOR THREE YEARS OPERATION $1,207,798.67

S A Y - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $1,250,000.00


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EXPENSES FOR SEED PROCESSING: ESTIMATES FOR PRODUCTION IN THE 5TH YEAR

2,000 hecs at 16 tons/hec = 32,000 tons/year; 180 tons/day; 180 days harvesting period a year

PARTICULARS AMOUNT

1. SEED BUYING AND HAULING ACTIVITIES 180 OPERATING DAYS A YEAR

a. Weighing/scaling - ten laborers at P300/day, 180 days $12,000.00

b. 10,000 empty sacks @ P10/each $2,250.00

c. Five Paymasters at P12,000/month (will serve as paymasters for other activities $16,000.00

d. Hauling Activities - five trucks servicing the plantation daily for 180 days

* Five drivers at P12,000/month $16,000.00

* Ten laborers at P300/day, 180 days a year $12,000.00

* Fuel = 60 ltrs/day/truck, 5 trucks for 180 days/year $60,000.00

* Oil = change oil every two months = P2,000/truck + oil filters x 5 trucks x 3 $670.00

* tires = 30 tires at P9,000 each $6,000.00

* spare parts = estimated at P20,000/truck; 5 trucks $2,250.00

2. OIL EXTRACTION ACTIVITIES - 110 tons/day; 300 operating days a yeara. Seed drying (110 tons daily)

(sun-dry - 180 days; machine dry - 120 days)

* 20 laborers at P300/day for 300 days $40,000.00

* electricity used by drying machine (5 machines = 100 kwh/day for 120 days) $13,350.00

b. Oil Extraction = 110 tons/day, for 300 days


c. Packing Activities (oil and biomass)

* 32,000 tons = 25% oil = 8,000 tons or 24.25 tons daily; or 121 drums of 200 ltrs/day

* 32,000 tons = 75% biomass = 24,000 tons or 80 tons daily


d. Electricity used - extraction machines (2 machines @ 20 kwh for 16 hrs operation $42,650.00e. Pressing machines for biomass (2 machines at 20 kwh for 16 hrs operation $42,650.00

3. PLANT PERSONNEL

a. Plant Manager at $1,000/month $12,000.00

b. Mechanical Engineer at $700/month $8,400.00

c. Production Manager at $700/month $8,400.00

d. Admin Officer @ $500/month $6,000.00

e. Building Maintenance Foreman @ $400/month $4,800.00

f. Electrician @ $300/month $3,600.00

g. Computer Programmer @ $350/month $4,200.00

h. 3 Machine Operators @ $300/month $10,800.00

i. 3 Office Staff @ $300/month $10,800.00TOTAL ESTIMATED COST OF HAULING, DRYING AND OIL EXTRATION $414,820.00

Estimated cost of oil extraction per kilogram of seed $0.013


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FINANCIAL PLAN: SUMMARYPARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR TOTALS

CAPITAL OUTLAYS $131,000.00 $396,000.00 $527,000.00

PERSONNEL EXPENESES $55,300.00 $59,500.00 $59,500.00 $174,300.00MAINTENANCE AND OPERATING EXPENSES $71,699.56 $69,899.56 $64,899.56 $206,498.67

LOAN TO FARMERS $60,000.00 $120,000.00 $120,000.00 $300,000.00

TOTALS $317,999.56 $645,399.56 $244,399.56 $1,207,798.67

S A Y - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $1,250,000.00

SCHEDULE OF BUDGET RELEASES

FIRST YEAR BUDGET FUND RELEASES

PARTICULARS1

STRelease

1st

Month

2nd Release

4th

Month

3rd Release

7th

Month

4TH

Release

10th

MonthTOTALS

CAPITAL OUTLAYS $71,000.00 60,000.00 $0.00 $0.00 $131,000.00

PERSONNEL EXPENESES $14,000.00 $14,000.00 $14,000.00 $13,300.00 $55,300.00

MAINTENANCE AND OPERATING EXPENSES $20,000.00 $18,000.00 $15,000.00 $18,699.56 $71,699.56

LOAN TO FARMERS $0.00 15,000.00 $15,000.00 $30,000.00 $60,000.00

TOTALS $105,000.00 $107,000.00 $44,000.00 $61,999.56 $317,999.56

SECOND YEAR BUDGET FUND RELEASES

PARTICULARS5th Release

13st

Month

6th Release

16th

Month

7th Release

19th

Month

8TH

Release

22nd MonthTOTALS

CAPITAL OUTLAYS $55,000.00 $0.00 $341,000.00 $0.00 $396,000.00



LOAN TO FARMERS $30,000.00 30,000.00 $30,000.00 $30,000.00 $120,000.00

TOTALS $117,375.00 $62,375.00 $403,375.00 $62,274.56 $645,399.56

THIRD YEAR BUDGET FUND RELEASES

PARTICULARS9th Release

25st

Month

10th

Release

28th

Month

11th

Release

31th

Month

12th

Release

34th

MonthTOTALS

CAPITAL OUTLAYS $0.00 $0.00 $0.00 $0.00 $0.00



LOAN TO FARMERS $30,000.00 30,000.00 $30,000.00 $30,000.00 $120,000.00

TOTALS $61,375.00 $61,375.00 $61,375.00 $60,274.56 $244,399.56


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ORGANIZATIONAL STRUCTURE

PROPONENT:

Organizer, Palawan Upland Farmers FederationPuerto Princesa City, PalawanPhilippinesEmail:[email protected]: 00639174991525See project location map on page 39See Proponents Resume on the last two pages.

PALAWAN UPLAND FARMERS FEDERATION

MANAGEMENT OFFICE

SEED PRODUCTION

(Plantation)Plantation Mana er

SEED PROCESSING

(Extraction Plant)PLANT IN-CHARGE

Board of Directors

Pro ect Director

COOP BOARD OF DIRECTORS(COOP MANAGEMENT TEAM)

COOPERATIVES FARMER-MEMBERS

COOPERATIVESHAULING OPNS SEED EXTRACTIONand

PROCESSING

DONOR


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See satellite mapshowing PalawanIn relation to thePhilippines

Project Area:Province ofPalawan, Philippines

Palawan - Courtesy of Google Earth

Palawan

Puerto Princesa City


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PROPONENTS RESUMEI PERSONAL CIRCUMSTANCES:

1. Federico Nunez Virgo, Jr., Filipino, male, 61 yrs old, married with three (3) children;all professionals.

2. Address: Residing at Casa Di Bambini, 188 Wescom Rd., San Miguel, Puerto Princesa City;Philippines. Telephone No. (006348) 434-4715;cellphone 00639174991525

3. Born on August 5, 1947 at Bago City, Negros Occidental, Philippines.4. Height: 165 cms; Weight: 67 kgs; medium built.

II EDUCATIONAL BACKGROUND:

1. Bachelor of Science in Commerce, major Banking and Finance.2. Earned 21 masteral units leading to MPA).3. Consistent Mathematician of the year from elementary grades to college.

III - WORK EXPERIENCES:

1. Entered government service asClerk in the Office of the Governor on August 1, 1968andresigned on March 16, 1986 because of change of political leadership in the Philippines. Duringthat period, had served on various capacities: from a lowly clerk to action man to troubleshooter; from community organizing to project implementation; from supervisor to middlemanager; from administrative to executive works; served as alter ego of the Governor ofPalawan from 1981 to 1986.

2. From December 2, 1987 to September 15, 1995 employed with the PhilippineAmusement and Gaming Corporation (Philippine Casinos); served as Sr Branch SurveillanceOfficer and one of the pioneers in installing Closed Circuit Television (CCTV) as vital securitymeasures in casino operations.

3. From September 16, 1995 to December 15, 2000 Provincial Administrator of Palawan ran the day-to-day governmental functions of the Provincial Government; and as alter ego of theGovernor, representing the later in different councils, meetings, and in various public functions.

4. Opted for early retirement at the age of 52 and went on part-time job of designing andsupervising construction of residential houses.

5. Consultancy worksIV TRAININGS: Completed more than 1000 hours of relevant trainings on variousfields/courses; few worth mentioning are:

1. Public Service Excellence Program (PSEP)2. Total Quality Management (TQM);3. Supervisory Training for Effective Administrative Management (STREAM);


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4. Junior Executive Training (JET);5. Civil Security Management Course;6. Six-ways Casino Gaming and Closed Circuit Television Monitoring Course;7. First Aid and Life Saving Course;8. CMO Intelligence Course;9. Personnel Management Course;10.Local Government Legal Education Course.

V SPECIAL SKILLS:

1. Computer Literacy and troubleshooting; systems analyst (design of functional computerprogramsparticularly on government operations);

2. Swimming and Life Saving Instructor;3. Simplified Martial Arts instructor;4. Trainor and lecturer on various subjects, particularly in the field of management and

security.

VI - CHARACTER REFERENCES:

1. BGen Romeo S. David (Ret), former President of Phil Amusement and Gaming Corp(PAGCOR);

and former Chairman, Clark Development Corporation; Tel. (02) 842-42962. Dr. Heracleo D. Lagrada, Director IV, Commission on Higher Education Cel: 09209092089

PROPONENT:

Puerto Princesa CityPalawan, Philippines

Documents

Seed of Hope - Revised - Millettia Pinatta Farming