Republic of the Philippines

PROVINCE OF SURIGAO DEL SUR

OFFICE OF THE PROVINCIAL GOVERNOR

PROJECT PROPOSAL

BASIC INFORMATION

PROJECT TITLE : ABACA PRODUCTION

PROPONENT LGU : Provincial Government of Surigao del Sur

PROPOSED IMPLEMENTING

AGENCY : Department of Agriculture

LOCATION : Different Areas of Surigao del Sur

BUDGET : TWENTY MILLION (P20,000,000.00) PESOS

CONTACT PERSON : ALAN A. PELENIO Executive Consultant, PGO

I. PROJECT DESCRIPTION

The proposed abaca production mainly focuses on the production of through

processed local fiber production to high value products. The project will be
implemented in different areas of Surigao del Sur where NGOs are the target groups to
avail of the projects. Organization has the experience, capacity and commitment to
implement successfully the proposed project. The said beneficiaries belong to a
community-based organization. The proposed project is based on the needs
assessment carried out by the Municipal Agriculturist together with the community
Mobilizers. Necessary consultations have also been held with the officials of provincial
government, including the Local Chief Executive. Implementation of the project would
alleviate the poverty condition of the beneficiaries as it augments their income while
being productive.

The most important part of the abaca is the stalk which is the source of the fiber.
Abaca fiber is superior over all other natural fibers because of its great strength and its
resistance to the action of water. Considered the strongest of natural fibers, it is three
times stronger than cotton. The product is known worldwide as the Manila Hemp, with
the Philippines as the top producer and exporter. The official standard grades of abaca
fiber are divided into three (3) classes depending on the manner of extraction, namely:

Page 1 of 4
hand-stripping, spindle-stripping and decortication. Quality is determined by strength,
cleaning, color, texture and length of the fiber. In terms of cleaning (which is a direct
result of the stripping knife used), the standard grades for hand- and spindle-stripped
are:1 Mindanao is a producer of both abaca fiber and finished products.

II. OBJECTIVES

General:

To promote sustainable farming system and provide livelihood projects to farm

families in the Barangay.
To create rural community awareness in organic farming practices introducing its
benefit and help, rehabilitate, conserve and protect the natural resources for
sustainable agriculture.
To achieve farm production sustainability and provide healthy agricultural food
products to the community through proper organic agriculture practices.
To promote economically sound and sustainable abaca production in the
community.
To generate employment and provide additional income to rural farm family
through community-based project.
Decrease poverty incidence by 50% (if implemented successfully and is
sustained rightly) by 2017.

Specific: (at least two to three)

Produce 7,000 Metric Tons of abaca every year.

Train many community leaders to sustain the production process.

III. EXPECTED IMPACT, OUTCOME AND OUTPUTS

The immediate outcome of the project is the increase production of abaca

directly benefiting the members of the community affected and their farming families.
The project contributes to the realization of the Philippine Millennium Development
Goals on poverty eradication while ensuring environmental sustainability and promoting
Good Agricultural Practices (GAP). Expected impact would be the following:

Reduction and soothing of food prices through the increase abaca production
and availability of organic (crops and) fertilizers at the household level and local
market.
Increased income level of farming families through the production and sale of
surplus farm produce.
Establishment and effective coordination mechanism for household food security
and agricultural based livelihoods in the target areas in close collaboration with
the Government, POs, FAs and other relevant stakeholders both vertically and
horizontally.

Page 2 of 4
IV. IMPLEMENTATION STRATEGIES

The proposed project will be implemented on a direct-benefit method providing

funds from the national government. It would involve the collaboration of DA-RF,
provincial government and beneficiaries. A steering committee will be created
responsible for the selection and validation of target beneficiaries to oversee all
activities during and after the implementation. Orientation, seminar and trainings will be
conducted by the DA-LGU and other line agencies. Briefing and orientation will be
conducted prior to the implementation of the project. The beneficiaries will identify a
focal person (Agriculture Technician) to manage the implementation of the project. He
will be assisted by the Community Mobilizers. A Memorandum of Agreement will be
made among the stakeholders concerned.

Most LGUs especially those that are in the higher rank in terms of eVSA have
signified interest to expand the present area devoted to and planted with abaca. The
interventions they have identified and are reflected in the intervention matrix of the PCIP
are steps that would increase total production, productivity and enhance quality of the
abaca fiber and increase the value addition through active and inclusive participation
along the value chain of abaca. Among the priority areas are as follows:

a. Use of good quality, disease-free & high yielding tissue-cultured planting

materials;

b. Access to pre & post-harvest facilities such as stripping machines, drying and

storage facilities;

c. Improve farm productivity;

d. Good roads to reduce transport cost and post-harvest losses

e. Inclusive and active participation in the value chain to increase value addition;

f. Attainment of Rainforest Alliance Certificate

Abaca Investment Plan

One of the identified priority commodities of the province of Surigao del Sur is
abaca. The intervention strategies for abaca were ranked during the conduct of the
stakeholders consultation among the LGUs and the different key players along the
value chain. The result of the ranking is indicated in Table 1 below: The value chain
analysis for abaca was the very basis in coming up with interventions to address the
identified gaps or constraints following the value chain segments: Input Provision,
Farming, Processing, Marketing and Inter-firm relationship. Programs and Projects were

Page 3 of 4
proposed with corresponding targets. The timeframe of the investment plan is three (3)
years. Budgetary requirement for each project was estimated.

Table 1

In order to sustain the implementation of the project, a management team will be

created. The management team shall be the Provincial Project Management and
Implementing Unit (PPMIU) which shall be composite in nature and shall have as much
as possible a separate project management office.

------------------------------------------------------------------------------------

RECOMMENDED BY:

ALAN A. PELENIO
Executive Consultant on Livelihood and Special Projects

APPROVED:

VICENTE T. PIMENTEL JR.

Provincial Governor

Page 4 of 4