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).
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