Proposal for Hub Establishment

PROPOSAL FOR HUB ESTABLISHMENT FOR SOUTH COTABATO PROVINCE

ABSTRACT

Mindanao, the southernmost major island of the Philippine archipelago, had been endowed with vast and fertile lands, prolific lakes, major rivers were traversing the valleys to irrigate crops and sustaining lives along the riverbanks; Catch basins of Ligwasan Marsh on the central Mindanao Area and Agusan Marsh on the northern part plays a key role in sustaining livelihood and culture of the people surrounding it. But sad to say, forests are gone, slash and burn farming practice, logging and conversion to large scale monocropping and agro industrial crops left those verdant green jungles fallowed. Climate change made a significant effect to other high value crops; fruit trees bear fruit out of season and other fruit trees don’t made it at all. Lake Lanao falls to its unexpected glum of water level thus looming power shortage to entire Mindanao archipelago.

In South Cotabato, especially surrounding major rivers and protected areas, the forests are gone. The soil pours down the hillsides collapsing the banks of rivers, washing out villages, rice and corn fields in its headlong rush to the sea, immensely threatening the food supply. With its near 100 meters above sea level elevation, low lying areas like Sultan Kudarat is the dumping area of the torrential water flow submerging the towns of Lambayong, part of Bagumbayan and other neighboring municipalities. In the outskirts of the province, only export activities left are monocropping plantations. It escalates the level of displacement of habitation and increase the population of urban poor looking for a better future in the urban areas. Back in the rural areas, agriculture has long overdue conflicts on land ownership as well as the recently prevailing land tenure relationships.

BACKGROUD/STATEMENT OF THE PROBLEM

Pampanga, Benguet, Baguio and Cordillera had already institutionalized the Bamboo Industry Development Council. We have this model which we want to replicate here in South Cotabato Province, thus the issuance of EO # 5 creating Bamboo Industry Development Council. We do have these problems in flooding, erratic climate, scarcity of livelihood and we do believe that bamboo plant could do its part in part and partial of the predicament. Now, the Bamboo Advocates has the mission to expand bamboo propagation along riverbanks and riparian zones as the project was spearheaded by the Allah Valley Landscape Development Authority (AVLADA).

Bamboo will be planted on unutilized land areas, most especially adjacent to the flood prone areas, First and foremost, to address global warming and environmental protection, secondly, for sustainable livelihood and develop it for innovative products like Bamboo Chairs, desks and tables for Department of Education requirements, plyboo(ply board made of bamboo), panels, flooring tiles, tegula roofing, MDF(medium density fiberboards) tiles, pencil, charcoal, incense sticks, paper, bamboo fiber for clothing, strand board, toothpick, chopsticks, matchsticks, medicines and other uses. There is a published book of 5,000 different uses of bamboo.

The South Cotabato Province Bamboo Industry Development Council (SCPBIDC) wants to develop and plant more on variety specific for Engineered Bamboo Production like Kawayang Tinik, Botong and Giant Bamboo variety, secondarily on other marketable bamboo varieties endemic in Philippines. With an annual demand from banana plantations of over 12 million poles for propping, the market opportunity justified full-out expansion of cultivated bamboo. Additional effort will come into propagation of Kayali for bamboo shoot production, and other variety for its special uses as well.


B. OBJECTIVES OF THE PROJECT

The project needs to establish a mini hub for processing of engineered bamboo for Department of Education’s requirements on Bamboo desks, tables and chairs. Other products produced will be sold to local market and institutional buyers like DPWH, Provincial Engineering Office and other NGAs that will use bamboo as wood substitute. Due to proximity of raw materials, Sto. Niño LGU will host the mini hub and the nodes are to be established at Lake Sebu, T’Boli, Norala, Surallah and Banga municipalities.This is the end market of the bamboos being planted by the land owners along riverbanks or riparian zone. Other LGUs with riverbank rehabilitation projects as an additional reforestation material and individuals who has passion for the environment will be benefitted as they earn extra income by selling bamboo poles to a node(pre-processed bamboo slats) centers.
Moreover, to plant with bamboos all the unutilized land areas for re-greening of the province and eventually, the development of a Livelihood and Economic Development Projects (LED Projects).

A. Long Term

In the long run, the proponents are encouraging the spirit of sustainability, the defining of real sustainable livelihood project, continuous plantation of bamboo propagules will be campaigned especially to the CBFM, ISF, IFMA, Riparian Zones, buffer zones and brown lands not suitable for agricultural crops and vegetations. For engineered bamboo production, the proponents as well as the supposed skilled workers will attend formalized training to be conducted by DTI-Cottage Industry Technology Center. will attend national and international forum on bamboo and other related activities, and to share information about research and developments: manufacturers, wholesalers and retailers, new products; product pricing; quality; product reviews; market size of product; and other vital information crucial and beneficial to the individuals involved, for the skills required, bamboo development research on quality and creation of a renewable and sustainable bamboo industry in the process.

The long term objective also is to establish an effective and efficient supply chain of raw materials to the processing plant or the Bamboo Hub at Sto. Niño, South Cotabato up to the final market which is the Department of Education for their requirements in bamboo desks and tables.


B. Short-term
Within the last quarter of 2011, realization on the establishment of a mini hub within the vicinity of Sto. Niño, South Cotabato should be achieved. This is the proximity measure of the manufacturing process since raw materials are relatively abundant around the processing area. Lake Sebu ranked the highest in number of clumps with the variety appropriate as raw materials. Surrounding towns like T’Boli, Norala, Surallah, Banga and Koronadal City will be the other areas from which bamboo poles can be sourced out as raw materials. Form these areas, nodes will be established for the pre-processed bamboo slats requirements of the Hub in Sto. Niño.




Benefits of the Project

People needs those livelihood projects, a sustainable, renewable and undamaging to environment; this could be answered by bamboo as environmental protection and as source of the modern and sustainable livelihood project.
Large scale vegetative propagation of bamboo can be done without massive capital investment or technically specialized workers. Farmers could start bamboo plantation without much cash or capital outlay and planting bamboo is inherent to every farmers in the locality. Bamboo can be the focus of equally large-scale community revitalization efforts.

As this bamboo-based development scheme which is based in an appropriate and accessible end-user market, the DepEd and DPWH as institutional market, this is a doable enterprise for the LGU Sto. Niño. Home demand should be addressed, first and foremost. Low cost housing with affordable building materials will eventually be the trend. Household daily uses that needs bamboo like charcoal for fuel, sanitized sticks for grilled meats, toothpicks, pencil and paper for schoolchildren. Tissue paper for toiletries and offices uses papers for their daily activities.
Community within the array of the processing Hub and bamboo forests will acquire immediate result of the plan. Rice, corn and other cash crop farmers will also reap the protective result being emanated by the bamboo cultivation.
Lastly, addressing the Green House Gases that cause global warming or climate change while maintaining the symbiotic relationship of human and nature, simply called the principle of co-existence.


PROJECT PROPONENT:

South Cotabato Province Bamboo Industry Development Council







Project Components:

• Area Development
• Facilities, Livelihood, etc.,
• Support Industries, Factories and Companies
• Manpower and Skills Development
• Center for Excellence institution for skills training e.g. engineering, human resource management, specialization studies, etc.
• Government Policies
• Internal and external markets
• Other sectors supporting bamboo industry

South Cotabato’s 370,590 hectares wherein 22.7% or 84,124 hectares declared as forestland/timberland.

FUNDING COMPONENT AND FACILITIES:

LGU Sto. Nino had allocated a budget of Php 700,000.00 for the initial capital of the mini hub. This amount will be used for the building structure, power installation, work benches and other primary equipments. RuMEPP will counterpart the initial tools needed for the primary processing and for training of the machinery and electrical tools operations. The capital outlay of LGU Sto. Nino will be the counterpart with provincial LGU. A Bamboo Hub to operate needs nearly Php 10,000,000.00 (DTI-CITC ,Manual on Engineered Bamboo, the Industry, Technology and other information). Minimum requirements for the Hub establishment are:

• 10 laborers
• 50 hectares of bamboo plantation
• 10 M capitalization.
• 12 Nodes (bamboo slat producers)

NODES machineries/equipments:

• Bamboo Pole Cutter - Php 45,000.00
• Twin Rip Saw 75,000.00
• 4s Planer/Sizer and Shaver - 240,000.00
• Treatment Vat or Pond 30,000.00
= = = = = = = = =
Php 390,000.00


: If, the Hub to operate in full shift to meet the supply and demand flow, it needs at least 12 Nodes to stream the pre-processed raw materials – 4s Bamboo Slats. Thus;

Php 390,000.00/node x 12 Nodes = Php 4,680,000.00

FINAL PROCESSING:

Machineries:

-ROUGH MILLING PROCESS

• Kiln Dryer Php 200,000.00
• Moisture Meter Device(Humidity Tester MD812) 1,099.56(ebay)
• Thickness Planer 250,000.00
• Surface Planer and Jointer 140,000.00
• Multi Head Spindle Moulder 2,100,000.00
• Portable belt sander 15,000.00
• Hot Press Machine 1,500,000.00
• High Frequency Laminating Press Machine 1,700,000.00
• Bar clamps and C Clamps(Babco-Bar-and-C-Clamps-18-Pc-Set) 2,364,57(ebay)
• Manual Rollers with Funnel 1,000.00
=============
Php 5,909,464.13

- FINISHING/ MILLING PROCESS

• Surface Planer and Jointer 140,000.00
• Multi head Spindle Moulder 2,100,000.00
• Airless Spray Gun with spray booth 200,000.00
==============
Php 2,440,000.00

NODE ATTACHED ON HUB Php 390,000.00
MILLWRIGHTING EQUIPMENT - 300,000.00
=============
SUB TOTAL Php 8, 649,464.13
MAINTENANCE COST (10%) 864,946.13
=============
TOTAL CAPITAL Php 9,904,410.53

Note: equipment prices are based on DTI - CITC costing, others were sourced out from ebay.

- CAPITAL ON RAW MATERIALS
(50 School Desks Production)

• 6,000 bamboo slats @ 2.00/slat Php 12,000.00
• Cutting and hauling (15%) 900.00
• Gluing, assembling and finishing materials(20%) 2,400.00
• Preservatives(insecticides/sap stain prevention) 5,000.00
• Labor Cost (40%) 4,800.00
===========
Php 25,100.00


• ROI – Php 717.00/armchair x 50 pcs = Php 35,850.00
• Profit Margin 10,750.00(43%)

Salient Features :( on a medium sized public school with 40 classrooms)

• 30,000 poles of choice cut bamboo will be used.
• A regular class of 50 students/room x 40 classrooms = 2,000 2,000 armchairs x 717.00 = Cost = Php 1,434,000.00
• Capital for 2,000 armchairs = Php 1,004,000.00
• 3.12 hectares of rainforest was saved.
• Same number of poles will be used to produce another 2,000 armchairs from same source area of bamboo poles.

SUPPORT INDUSTRIES:

The Cottage Industry Technology Center (CITC) will provide technical knowledge on machine operations and other related trainings for the bamboo industry. DTI South Cotabato thru the special project of RuMEPP will maintain the market linkage, source out investors for the industry and provision of business development services as well as relevant trainings needed to the industry. The Provincial Environment and Management Office (PEMO) with Allah Valley Landscape Development Authority (AVLADA) will carry on with its advocacy program on sustainability of bamboo raw materials through its reforestation and forestation projects. The Department of Agriculture will provide bamboo propagules and other relevant trainings on the nursery management,permaculture and silvicultural management of bamboo plantation. DENR through ERDB, PCCARD and FNRS will augment the needs in research and development. DepEd will be the institutional buyer of the bamboo armchairs, desks and tables. DOST will provide necessary technology and technical assistance. For the sustainability of manpower resources, TESDA will formulate and provide skills trainings related to bamboo production and machine operation thru the technology transfer to be conducted by CITC. The Provincial Government of South Cotabato had already issued an Executive Order and a one-stop-shop on issuance of transport permit of bamboo in support of the initiatives in bamboo industry development and will provide financial assistance and other fundamental support to sustain the industry. Non-government Organization like South Cotabato Bamboo Crafters Association will be the additional support for the production of traditional bamboo products, as bi-products and the Bamboo Growers Association, as a private sector will support supplying propagules in the grass root level of intervention with the bamboo industry development. Thus completing the diamond model for the industry clustering:


MANPOWER AND SKILLS DEVELOPMENT:
With the forging of the Memorandum of Agreement between DTI South Cotabato through its RuMEPP Program(Rural Micro Enterprise Promotions Programme) and the Cottage Industry Technology Center (CITC)as it implements programs and projects aimed to provide production enhancing technologies and processes, tooling and equipment, product sample making/materials manipulation, and other related business development services (BDS) to community based enterprises (CBEs), marginalized groups, cooperatives, associations, and other self-help groups with the end-view of transforming them into sustainable and competitive MSMEs. It also helps develop other government and non-government entities as local non-financial BDS providers.
Moreover, the CITC provides skills training, technical consultancy, and common facility services to micro, small, and medium enterprises (MSMEs) as well as to the country’s giftwares and holiday decors, fine jewelry, leather footwear, and home furnishing industries.


GOVERNMENT POLICIES:

Executive Order 879 which was issued last May 26, 2010 creates the Philippine Bamboo Industry Development Council. Regional Development Council had considered bamboo as one of the cluster project with vivid future. Department of Trade and Industry (DTI) have identified its development as one of its flagship projects and have initiated the implementation of the engineered bamboo project. South Cotabato Provincial Government had made same effort and an all out support for the issuance of the Executive Order # 5 creating South Cotabato Province Bamboo Industry Development Council (SCPBIDC) and its Implementing Rules and Regulations. The institutionalization of a weeklong Kawayan Festival and the creation of Technical Working Group to formulate policies and guidelines which borne the design of one-stop-shop in municipal level for the issuance of the travel permit of bamboo poles, makes the bamboo industry future more doable and viable. President Benigno Aquino issued Executive Order 23 implementing the indefinite log ban and creating an Anti-Illegal Logging Task Force, thus an alternative for wood requirements is much needed which could be replaced by bamboo at par excellence.

INTERNAL AND EXTERNAL MARKET:

Internal market would be the Department of Education for bamboo desks, tables and chairs. For the wooden pallet requirements of the banana industry sector, a bamboo shipping pallets is the replacement. Local home furnishings on parquets and panels, floor tiles and other wood requirements for construction, engineered bamboo products are the remedy to the wood shortage. External market would be China and other Asian countries as they import chopsticks from foreign countries producing bamboo-made chopsticks, a contrasting outlook since China is one of the largest producers of bamboo finished products (http://www.foodista.com/blog/2011/08/04/china-imports-chopsticks-from-us-company).

Bamboo Industry Profile in South Cotabato

BAMBOO INDUSTRY PROFILE IN SOUTH COTABATO
Rimmon A. Paren
History of Development
Prior to the advent of industrialization and utilization of negotiable instruments and paper currency transactions, bamboo had played a significant role in the self-sustaining economies in many nations, mostly in Asian nations, that are now clustered together as developing countries, being so, bamboo is still an immediate option for various usage, and it still does in some remote parts of our Asian Continent yet untouched by modern economics and mostly are the member countries of BIMP-EAGA.
Way back to pre –war history, Chinese were planting bamboo for no other reason; it is for their personal use, from housing material, to farming tools, utensils and other basic usage. Today, China ranked as second in number of area planted with bamboo at around 10 million hectares, ranking first is India with 12 million hectares of bamboo. Chinese government had gained revenue of $160 million from bamboo industry and still growing up to this writing.
Still, bamboo is excruciatingly budding its way up, and there have been attempts in numerous parts of the world to address this irony: scientists, engineers, designers, development practitioners have all been part of the cause to these efforts that aimed to gain recognition for bamboo as a modern and immensely useful material. In China, paper made of bamboo was utilized at around 1,500 years ago. The research and development still continue up to this moment.
SYNOPSIS
Bamboo is the fastest growing and most useful plant in the world. One of its most common uses was as a building material for shelters, farming tools, musical instrument. Bamboo houses were a tradition and even today, millions of rural houses in Asia prominently feature bamboo in their construction. Research has proved bamboo’s admirable engineering and mechanical qualities, and its aesthetics have never been in question. Still, when it comes to construction, bamboo has largely remained a poor man’s choice.
POLICIES AND LEGISLATIONS
Focusing on the local scene, Philippines is seizing the trend and opportunities, spearheaded by a private organization, the Rotary Club of Makati Central, borne the Bamboo For Life, the former President of the Rotary Club, Edgardo Manda, initiated the move last 2007 and still working for the bamboo re greening projects in Benguet and Baguio province being the President of Philippine Bamboo Foundation.
With the institutionalization of Philippine Bamboo Industry Development Council of Executive Order 879 issued last May 30, 2009, the development efforts spiraled down to Mindanao and the concept was embraced by South Cotabato Provincial Government, with Department of Trade and Industry (DTI-SC) as the lead government agency. South Cotabato had duplicated the endeavor by issuing EO 5 which was issued last May 2011; this was the replica of effort done by Pampanga Province, which was ideally duplicable down to the city/municipality to barangay level. The EO 5 of South Cotabato is in an extensive support to the week long annual celebration of kawayan Festival.
A one stop shop for permitting of bamboo cutting and hauling was drafted and proposed:




















South Cotabato Bamboo Industry Development – In Spotlight
The Province of South Cotabato is situated at the southern part of Mindanao with a total land area of 3,706 square kilometers or 370,590 hectares wherein 22.7% or 84,124 hectares declared as forestland/timberland. It has two (2) declared protected areas, namely the Mt. Matutum Protected Landscape and Allah Valley Protected Landscape. It serves as a major watershed to Silway River drained to General Santos City in the east and Allah, Banga and Marbel rivers that drains towards the provinces of Sultan Kudarat and Maguindanao in the west providing irrigation, domestic use and potable water. Thus, the province has seen the need for the management of the abovementioned areas, thereby creating the Provincial Environment Management Office pursuant to Provincial Ordinance No. 83, series of 2005. It has to carry out the mandates for the protection of forestlands and riparian areas covering the 10 municipalities and 1 city of the province.
Several programs and projects were conceptualized in response to the increasing issues on environment. One of these, the Riparian Zone Revegetation (RZR) program launched last June 2007 in Allah Valley areas spearheaded by the Allah Valley Landscape Development Alliance (AVLDA) in partnership with various others organizations as their program adopters. Riparian areas include minor and major tributaries of Silway, Palian, Marbel, Taplan, Safali, Banga and Allah rivers. The RZR program aims to address adverse impacts of the braiding nature of the river systems within the AVL Landscape, control riverbank erosion and collapse, improve water flow regime, and reduce pollution of surface water and control flood in certain circumstances (AVLDA report). It is one of our strategies to combat the terrible effects of climate change that we are experiencing nowadays.
The program uses bamboo particularly species of afus and bayog as planting materials in respond to the increasing demand of bamboo for katig and for handicrafts and bahay kubo business because of its characteristics that it matures in 4 to five years and multiple harvests every second year up to 120 years. It only requires minimal capital investment for plantation establishment. It is also being promoted because of its notable use for riverbank stabilization and for its remarkable economic benefits. Sadly, their importance to socio-economic development seems to be neglected and ignored. Bamboo was chosen as reforestation species along river / creek banks because it grows more rapidly than tree as much as 15 inches per day and effective in protecting banks and hill slopes against soil erosion. It typically binds 6 cubic meters of soil, more fiber than the fast growing pine tree and generate rhizome (young shoots) network that spans up to 1,000 square meters. One hectare of bamboo plantation seizes 12,000 kilos of carbon dioxide each year compared to trees, of same area which only absorbs 8,000 kilos of pollutants.
South Cotabato rank fifth as the top bamboo producers in the Philippines. In terms of bamboo pole produced per hectare of forest land.
II. Situation:
South Cotabato’s 84,124 hectares forest resources serve as the life support system in the lowlands. The inappropriate farming systems in the upland have greatly affected the environmental condition in the lowlands. These activities contributed to environmental destruction which resulted to exponential increase in soil erosion, uncultivable soil, meandering or braiding of rivers, sludge on main contributories and flashfloods.
Given this situation, the Provincial Environment Management Office implemented the Riparian Zone Re-vegetation (RZR) Program. The Provincial Environment Management Office initiated the RZR activities in the entire province with yearly allocation of PhP 600,000.00 under the Community-based Upland Development and Natural Resources Management and Lake Sebu Rehabilitation, Conservation and Development Program catering 14 barangays of the province. By the third quarter of the year 2011, another 25,000 bamboo seedlings should be planted sporadically all over South Cotabato.
The Provincial Environment Management Office had planted bamboo but suffered severe mortality because of flash floods and others were destroyed by stray animals (48% survived).
Table No. 1.1: Status of Planted Bamboo per municipality/city
Name of City/Municipality # of Planted Bamboos # of Bamboos Survived
Koronadal 2,565 910
Lake Sebu 24,600 10,940
Banga 9,350 3,450
Tupi 12,825 7,480
T’boli 6,430 3,500
Polomolok 2,763 2,487
Tampakan 14,485 6,508
Total 73,018 35,275
Source: Provincial Environment Management Office (PEMO)
Geographic Distribution of Bamboo in South Cotabato

Source:Dr. Ramon Ponce De Leon, PEMO
Update of the Opportunity within the Situation
South Cotabato was nominated as beneficiary of IFAD (International Fund for Agricultural Development-IFAD is also the main funding agency which creates INBAR-International Network of Bamboo and Rattan emanating the international organizations of bamboo societies around the world like American Bamboo Society, FOBAR in Japan, Chinese Bamboo Society, India Bamboo Society, International Bamboo Foundation, Environmental Bamboo Foundation, World Bamboo Conference and institutionalized the World Bamboo Day which is celebrated every September 18th, in time with the biennial conference of WBC) through the DTI with its Special Project Unit, RuMEPP (Rural Micro Enterprise Promotions Programme) and championing the bamboo as community revitalization tool, understood as the true meaning of sustainable development.
Data banking of bamboo plants and existing industry players were presently prepared by DENR. Hub (bamboo panel processing plant) establishment on area of Polomolok and Sto. Nino was already finalized and Information and Education Campaign is ongoing. On the 3rd Quarter of 2011, PEMO had a goal of planting another 25,000 seedlings of bamboo and large percentage of it was for the Hub raw material requirements. Bamboo trainings and seminars were jointly undertaken by the Provincial Government of South Cotabato and Rural Micro Enterprise Promotion Programme (RuMEPP). Nursery Operators and Bamboo Crafters Association were organized.
LIST OF BAMBOO NURSERY OPERATORS IN SOUTH COTABATO
Name of Operator Location
1 DANNY CABIO Lake Sebu
2 ARIEL DUBLA Lake Sebu
3 KGD. RUEL MANANSALA Tupi
4 CARLOS LAMIGO Tantangan
5 ANASTACIO LORENTE Tantangan
5 ORLANDO ONGAN Koronadal City
6 ELIAS PLASIGO Tampakan
7 SUSANA AREVALO Tampakan
8 ROSE DASALIA Tampakan
9 JANET GUARIN Tampakan
10 RENATO MONIÑO Tampakan
11 ROSE ORTEGA Tampakan
12 ARIEL ULYAMOT Tampakan
13 WILMA PEÑARANDA Tampakan
14 PACIFICO DIOT Tampakan
15 BASILIO GONZAGA Tampakan
16 IAN SAGUINDAN Tampakan
17 JESUS MASAYON Tampakan




South Cotabato Bamboo Crafters Association
List of Officers and Members
(DOLE REG. ROXII -2011-202)
President: Jessie Navarro
Vice President: Rozander Apitong
Secretary: Editha Sabalza
Treasurer: Cristita Rabong
Membership/Credit Committee: Felix Hilado
Audit/Inventory Committee: Aurelio Launio
Education Committee: Rozander Apitong
Monitoring/Evaluation Committee: Ernesto Baterbonia
Association Members:
1. Cris Apitong 10. Danny Laureano
2. Angie Sabalza 11. Maria Fe Magno
3. Marjun Lago 12. Ken Jumilla
4. Rizaldy Gayosa 13. Jose Antonio Serra
5. RJ Asperga 14. Rennie Olarte
6. Romeo Dela Peña 15. Jean Garzon
7. Romy Launio 16. Niel Roy Apitong
8. Jenalyn Gananan 17. Jimboy Sabalza
9. Edgardo Asperga 18. Ronaflor Apitong




A Hub for Engineered Bamboo
Since a Hub would require a 50 hectares of bamboo plantation (afus, botong, kawayang tinik), data below gives us the figure of viability of the project. Afus(Dendrocalamus Asper) variety had a total actual clump of 17, 315, Botong (Gigantochloa Levis) had a total stand of 14,189 and Kawayang Tinik (Bambusa Blumeana) has 4,989 and summing it up:36,493 clumps and if an hectare of bamboo could contain 400 clumps, that would be 91.2 hectares and obviously more than enough for the 50 hectares requirement of a hub to carry on. Never the less, bamboo plantation is ongoing and private investors are interested in going into the venture. Riparian Zones are still the priority project of the Provincial Environment Management Office with the co-management of LGU, NGO and POs.
Table No. 2: List of harvestable bamboo per municipality

Municipality Number of Bamboo Clumps
Afus Bayog Botong Kawayan Tinik Bolo Laak Patong Dalusan Kiling Kagingking
Koronadal 60 2,430 2,380 1,680 50 200
Tampakan 1,749 392 2,359 593 40 1,600 474 315
Tantangan 135 125 547 632 214
Tupi 1,455 44 509 97 80 82 13 107
Polomolok 660 2,180 333
Surallah 596
Banga 548 287 714 1,254
Norala 255
Sto. Niño
Lake Sebu 12,708 5,500 145 170
T’boli 502 200 5,348
TOTAL 17,315 20,793 14,189 4,989 120 7,544 556 213 491 315
Source: PEMO
A Memorandum of Agreement was already inked between DTI South Cotabato and Cottage Industry Training Center (CITC) for the trainings on nursery and plantation management, machine operation and Quality Controlling. The hub will produce bamboo planks for the requirements of DepEd for Bamboo armchairs, desks and tables. Commitment of SDS Dr. Fontanilla of DepEd South Cotabato is to procure the equivalent of at least twenty percent (20%) of the annual school desks and arm chair requirement of all public elementary and secondary schools.
Bamboo panels will be supplied to the furniture manufacturers for further assemblage of desks and tables who will pass the standard of DepEd Evaluators.
INDUSTRY DEVELOPMENT
CAPITALIZATION FOR HUB ESTABLISHMENT
Machine Tools and Equipment Remarks Indicative Cost
1 Primary Processing
Bamboo Pole Cutter Locally fabricated 45,000.00
Twin Rip Saw -do- 75,000.00
Treatment Vat or Pond -do- 30,000.00
2 Kiln Drying Operation
Options: Wood fired, Dutch Furnace
5000 bd. ft cap. 400,000.00
Electric /gas fired 1000 bd. ft. 200,000.00
3 Final Processing (Planks/Panel)
3.1 Planing Operations
Options :6 Spindle Moulder
High volume production S4S, stand alone equipment 2,100,000.00
4 Side Planer: High volume production of S4S 240,000.00
a) Jointer Planer 200,000.00
b) Thickness planer 250,000.00

3.2 Side & End Profiling
Options
a) 6 spindle moulder Used as planing, side profiling of planks 2,100,000.00
b) Single Spindle moulder Used in conjunction w/ 4 side planer 180,000.00
c) End Matching For high volume production 180,000.00
d Circular Saw Used w/Jointer, thickness planer 140,000.00
3.3 Gluing
Options
Ordinary Roller For lower volume production 500.00
Manual rollers W/ Funnel 4”-6” Width 1,000.00
Motorized Rollers - 18”- 24” W 250,000.00
3.4 Lamination
Options
Table Press w/ pneumatic press and compressor 150,000.00
Cold Press 600,000.00
Radio Frequency (RF) 1,700,000.00
Hot Press 1,500,000.00
3.5 Cutting Operation
Options
Arm Saw 120,000.00
Circular Saw 210,000.00
3.6 Sanding Operation
Options
Portable belt sander 4” by 12” 15,000.00
Wide Belt Sander 18”-24”W 650,000.00
4 Finishing System
Options
Air compressor w/ Spray Gun 30,000.00
Airless spray gun w/ spray booth 200,000.00
5 Millwrighting Equipment
Sharpening for Circular Saw 150,000.00
Grinder for Planer Knives 150,000.00
TOTAL 9,571,000.00
SOURCE: DTI-CITC
PLANTATION CASHFLOW (Rey Millan)
A one hectare of fallowed land planted with Dendrocalamus Asper (apos) with a total population of 625 clumps, woul yield. (less:expenses-cutting, hauling)
SALES(POLES) (assumed on 6th year)
18 FEET 625 CLUMPS x 6 = 3,750 x 16.00 = 60,000.00
16 FEET 625 CLUMPS x 6 = 3,750 x 9.00 = 33,750.00
____________
PhP 93,750.00
=========
INCOME 93,750.00
- 37,500.00 (Labor)
____________
PhP 56,250.00 NET PROFIT/ YEAR/hectare
=========


FINANCIAL REQUIREMENTS (BAMBOO NODE-semi processed bamboo slats)
Bamboo Production
Total Project Cost
Particulars Amount
Assets
Land Development Cost 23,770.00
Fixed Assets
8-Bladed Manual Splitter 3,500.00
Sub-total 27,270.00
Working Capital (1 Year)
Operating Expenses 32,500.00
Sub-total 32,500.00
Total Project Cost 59,770.00
TPC excludes the land cost.
Underlying Assumptions:
• No. of planting hills in one (1) hectare is 210.
• Ave. yield/plant is 5 poles per year starting year 5.
• Ave. yield/ hectare is 1,050 poles.
• Each pole can produce 88 sticks of 3 feet long.
• Selling price is Php 1.00 per stick, which will increase by 10% per annum.
• Expenses will increase by 10% per annum.
• Fixed assets are depreciated using the straight line method for 5 years.
• Land Development Cost is amortized using the straight line method for 30 years.
• Delivery cost is shouldered by the buyer, Amadeo Group of Company.
PROJECTED SALES AND INCOME (1 year cropping cycle)

Bamboo Production
Projected Sales and Income

Particulars Year 1-4 Year 5 Year 6 Year 7
No. of culms per hectare 210
Multiply: Ave. no. of poles/culm 5
Total no. of pole 1050 1050 1050 1050
Multiply: Ave. sticks produced per pole 88 88 88
Total sticks produced (3 ft. long) 92,400 92,400 92,400
Frequency of Harvest per Year 1 1 1
Total sticks produced (3 ft. long) 92,400 92,400 92,400
Selling price per stick 1.00 1.10 1.21
Total Sales 92,400.00 101,640.00 111,804.00

Less: Production Cost
Overhead
Depreciation Expense 700.00 700.00 700.00
Amortization Expense 792.33 792.33 792.33
Sub-total 1,492.33 1,492.33 1,492.33
Gross Profit 90,907.67 100,147.67 110,311.67
Less: Operating Expenses 32,500.00 35,750.00 39,325.00
Net Income before Tax 58,407.67 64,397.67 70,986.67
Return on Investment (Ave. Net Income/ TPC) 316%
Payback Period (TPC/ Ave. Net Income + Dep'n. + Amort'n.) 1 Year
Gross Profit Ratio (Gross Profit/ Total Sales) 98% 99% 99%
Net Margin Ratio (Net Income/ Total Sales) 63% 63% 63%
*EUL - Estimated Useful Life (SOURCE DTI NERBAC12)







BAMBOO USAGE IN SOUTH COTABATO
WINDBREAK
Whirlwinds or small tornadoes are regularly hitting flat areas, good as a windbreak.

FLOOD CONTROL

Monocropping is widespread all over the province, recommending the bamboo as a protective plant for flash floods and buffer zones.






TAILING POND BIO TREATMENT

With the presence of mining firms, it is recommended that they should have a tailing pond planted with bamboo. Benguet mining companies are now gaining approval rating over skeptics by using bamboo as revitalizing tool. Bamboo planted on tailings ponds absorbs lead, cadmium, copper and other toxic metals and chemicals, reducing the toxins in the soil. An advocate, however, warned the toxins may transfer to humans, especially the parts eaten by or are exposed to the human skin.
Economic benefits can also be derived from by-products that come from the leaves, sheath, trunk, shoots and roots of the bamboo.
FOR FOOD SECURITY
With Banga as corn capital and Surallah, Norala and Sto. Nino as rice granary, we need to protect the watershed area that irrigates the rice paddies. Fresh and pristine water provides nourishment to valuable crops and promises a bountiful harvest. Reducing the torrential flooding of rain waters on the landlocked areas, plants flourishing on the plane will be free from inundation.
BAMBOO AS LIVELIHOOD
COMMUNITY REVITALIZATION TOOL





SUPPLY AND DEMAND
CURRENT MARKET (TRADITIONAL)
1. Top Producers of Bamboo Poles and Split:T’boli,Koronadal,Lake Sebu
Price Range: Delivered to Gen. Santos City
Pole: PhP450.00 to 500.00
Split: ~PhP35.00/bundle (12 pcs/bundle), 6 ft in length
Pick up Price:
Pole: Afus : PhP60.00/pole (45 ft)
Botong: PhP10.00/pole (32 ft)
Bayog & Kawayan: PhP30.00 (35 ft)
Split: ~PhP1.00/pc (12 pcs/bundle) 6 ft in length
2. Top Producers of bamboo for banana props: T’boli ,Tampakan
Price Range of Pole: ~ PhP6.00 (pick up price) ~ PhP12.00 (delivery price)
3. Producers of bahay kubo, furniture and other handicrafts
>>Tampakan, Koronadal, Banga, Tantangan, Tupi, Polomolok

ENGINEERED BAMBOO FOR DESKS AND TABLES




INDUSTRY PLAYERS:
1. NURSERY OPERATORS
2. BAMBOO PLANTATION INVESTORS
3. PLANTATION WORKERS
4. TRUCK HAULERS
5. BAMBOO PROCESSORS
6. CRAFTSMEN
7. BAMBOO MILLING OPERATORS
8. CONSOLIDATORS

Industry Processes
Value Chain in bamboo production was foreseen as viable business. Nursery operators can now rake wealth from bamboo propagation. Serious land owners who understands the potential of bamboo is the conceived buyers of propagules. Land Owners then can have a centennial source of income from bamboo as the supplier of the raw materials needed for bamboo millers, processors and local market. Investors on laminated bamboo panels or planks will exploit the gap of the market of bamboo which is 13 million tons out of 26 million tons of market demand worldwide and still growing.
Engineered bamboo is produced by laminating or gluing two or more layers of crushed, split, or veneered bamboo which can be made into engineered floors, chopping boards, table tops and furniture. This technology is developed by Mariano Marcos State University (MMSU) in Batac, Ilocos Norte.
Skill Sets

Being strategically located at Asian continent, bamboo is basically part of the culture and tradition of Filipino people, thus skills appropriate for bamboo production is not a hindrance. TESDA is now preparing a module for the refinement of the skills training for bamboo production.



Employment

Along the process, from nursery to the laminated bamboo planks finished product, a single industry can mobilize 409 skilled individuals. 14 from nursery operation, 252 for the plantation management and harvesting, 77 people will be engaged in pre-processed and final process, 19 skilled people for the finishing process and finally 47 people for the sales and marketing of the bamboo finished products.

Alongside the industry development, waste products like cuttings, saw dusts, twigs, leaves and other residual materials during the process could be utilized and could provide as a livelihood as well. Bamboo sheaths can be used as platter for finger foods. Bamboo cuttings for charcoal, twigs and leaves for mats, rugs, clothing, mattress and bath towels. Bamboo shoots for processed food and surplus on bamboo shoots could be processed for livestock fodder since it is high in crude protein.

Environmental Impact
Re greening the province as well as the urban and rural areas is the best remedy for the global warming, climate change and greenhouse gases, these three factors are indicators for a global warning. Environmentalist have these concerns; ABC News has obtained a preliminary draft of the upcoming report on climate change, which shows a grim outlook on the effects of global warming and emphasizes that scientists are more convinced than ever that humans are causing it.
"We're hoping that it will convince people, you know, that climate change is real," said Kenneth Denman, co-author of the Intergovernmental Panel on Climate Change (IPCC) report. (source: http://abcnews.go.com-2007)
This report says that we have ten years clock to restore our green planet or we will suffer the irreversible damage. Thus bamboo is well suited for the re greening process for it has a span of only five years. At half a decade, it is already a fully grown mature plant and outranked dipterocarps in carbon sink capacity as well in oxygen emission and carbon dioxide absorption.

Another research proves that the use of bamboo as an ingredient in biofuel is a topic that comes up frequently in renewable energy talks. Can bamboo really be a source of renewable energy? The process of converting a biomass to a liquid energy source can be fairly difficult in the case of the bamboo plant. The plant is hardy and not easy to harvest, but produces a high level of biomass. Researchers are looking for a method of harnessing the energy of bamboo and there have been several proposed methods of doing so.
Fischer-Tropsch Process for Bamboo Bio Diesel
The Fischer-Tropsch is a multi step process of converting biomass to biofuel. In a nutshell, this process a catalyzed chemical reaction that takes a gas mixture of carbon monoxide and hydrogen, and converts it into liquid hydrocarbons. This reaction will take place in temperatures between 150-200 degrees Celsius. The resulting hydrocarbons are the basis of fuels used into today's world, and are a great alternative to petroleum. Although this process is successfully creating biodiesel today... The big question remains as to whether or not bamboo can be a useful basis in this process. It is rich in carbon, but it could be a long time before it can be used effectively in this process. There exists very little practical experimentation with bamboo in the Fischer-Tropsch process, but the idea has been put forth.
The Future of Bamboo in Biofuels
If bamboo could be efficiently converted into fuel, the rise of bamboo as a non-food crop could grow in the United States. Deforested areas could be colonized by bamboo four times faster than most native plants. Private property owners would also have more incentive to grow bamboo to become energy self sufficient. There is already an abundance of bamboo throughout Asia, and its popularity is growing rapidly in the United States. If a legitimate process of converting its mass into liquid fuel were developed, one would assume that its popularity would only grow larger. This would allow people to produce rapidly growing fuel sources, and discontinue the use of petrol based fuels. The future is exciting for bamboo bio-fuel and we will post future updates as we receive them.
Dr. Foronda is endorsing bamboo for clean bio oil and bio coal, a best replacement for coal mining to fire up power plants in our looming power shortage, he says that 1,000 hectares of bamboo plantation could supply a daily output of 70-75 tons per day. Invest in Bamboo Bio-oil Production and make money!Reduce dependence on fossil fuels, reduce GHG emissions, protect the environment and create jobs, he added.
We will be moving on from vicious cycle to virtuous cycle, plant bamboo and no need to replant for another 100 years.

Outlook

The allure of the Asian aesthetic, particularly in using bamboo materials to endow products an essence of simplicity, has created a continuously growing market in the recent years. Environment conscious buyers have considered the durability and renewability of the plant being a natural and eco-friendly alternative to more traditional wood choices. With a tensile strength of 28,000 per square inch versus 23,000 per square inch for steel, and a weight-to-strength ratio better than graphite, bamboo is the strongest growing woody plant on Earth making it a viable replacement for wood.
World trade on bamboo and bamboo products was estimated at $12 billion in 2002 and was growing at two billion US dollars ($2B) yearly (Annex 1). Bamboo flooring enjoys a very good demand especially in environment-conscious Europe where people are willing to pay more than $100 per square meter of bamboo flooring compared to only about $25 per square meter for a floor made of oak. (DTI12-nerbac).
Through the Philippine International Eco-Show, we hope to raise awareness and inspire change in the way people treat their environment… We are looking for partners for this project who share the same vision of a greener world,” CITEM Deputy Executive Director and the Eco-Show’s Program Director Maria Thelma Dumpit-Murillo said.
PBFI President Edgardo Manda noted that “bamboo, which grows to maturity in just four to five years and grows well in a tropical climate, is best for reforestation.”

“Converting large areas of grassland into bamboo forests will increase farmers’ incomes and expand their work opportunities,” said Manda.

China has nurtured over 6 million hectares of bamboo forests, which sustain a $2 billion-plus annual export industry that makes food, medicine, beverages, tiles, textile, furniture, and handicraft, among other things, of bamboo.

We are giving priority to using bamboo in reforestation for various reasons. One is the fact that some bamboos still stand in many areas needing reforestation. Bamboo can provide forest cover while giving significant economic benefits. China’s bamboo industry is worth billions of dollars.

Business leader Wash Sycip, the first donor for our Aeta Village in Tarlac, has suggested that I look at bamboo for our reforestation project in the village. Recently, with the help of the Philippine Bamboo Foundation headed by Ed Manda and the International Network on Bamboo and Rattan in Beijing, I got to see China’s bamboo industry in the province of Zheijang.

What I saw impressed me, as well as other Filipinos who visited China’s bamboo industry. Mountains that used to be denuded are now covered with beautiful green bamboo. Farmers live in nice houses. Companies are expanding their factories to process bamboo for food, textile, beauty and wellness, furniture and fixtures, and construction of buildings. Part of their production output is exported to the US and other developed countries that have high demand for bamboo products”.