Presentation is loading. Please wait.

Presentation is loading. Please wait.

COMMUNITY WEALTH CREATION INITIATIVES IN MINDANAW KATILINGBANONG PAMAHANDI SA MINDANAW FOUNDATION INC. The Social Enterprise Institution of Balay Mindanaw.

Similar presentations


Presentation on theme: "COMMUNITY WEALTH CREATION INITIATIVES IN MINDANAW KATILINGBANONG PAMAHANDI SA MINDANAW FOUNDATION INC. The Social Enterprise Institution of Balay Mindanaw."— Presentation transcript:

1 COMMUNITY WEALTH CREATION INITIATIVES IN MINDANAW KATILINGBANONG PAMAHANDI SA MINDANAW FOUNDATION INC. The Social Enterprise Institution of Balay Mindanaw Group

2 KPMFI… relatively newcomer in the field of social enterprise relatively newcomer in the field of social enterprise registered with Securities and Exchange Commission (SEC) last Oct. 17, 2006 registered with Securities and Exchange Commission (SEC) last Oct. 17, 2006 It is an institution that has been conceptualized by the leadership of Balay Mindanaw Foundation, Inc. (www.balaymindanaw.org) after seeing the need for an institution that will focus on social enterprises It is an institution that has been conceptualized by the leadership of Balay Mindanaw Foundation, Inc. (www.balaymindanaw.org) after seeing the need for an institution that will focus on social enterprises It is also a logical evolution of its area based development work for the last 11 years. It is also a logical evolution of its area based development work for the last 11 years.

3 Rationale Integral part of our SIAD work as realized when we implemented the SIAD Program Integral part of our SIAD work as realized when we implemented the SIAD Program Putting value from the existing initiatives (SIAD – COCOBREAD) Putting value from the existing initiatives (SIAD – COCOBREAD) Taking –off from the strength of the livelihood projects of the partner communities in the last five years (production, processing and marketing) Taking –off from the strength of the livelihood projects of the partner communities in the last five years (production, processing and marketing) How to ensure that small victories and gains achieved by the partner POs and partner barangay and local government units will be protected and enhanced to grow stronger as the vehicle towards development and become a foundation for building sustainable peace in the partner communities How to ensure that small victories and gains achieved by the partner POs and partner barangay and local government units will be protected and enhanced to grow stronger as the vehicle towards development and become a foundation for building sustainable peace in the partner communities

4 Vision (Internal) A Social Enterprise NGO with big dreams for its partner communities under the BM Group of NGOs, with professionalism at par with national and global standards, and a local NGO with a passion to revolutionize production technologies and contributing to market reforms thus making it accessible to the poor… A Social Enterprise NGO with big dreams for its partner communities under the BM Group of NGOs, with professionalism at par with national and global standards, and a local NGO with a passion to revolutionize production technologies and contributing to market reforms thus making it accessible to the poor…

5 Mission : Helping Build Community Sustainable Enterprises Helping Build Community Sustainable Enterprises Helping Build Opportunities for Wealth Creation for Local Entrepreneurs Helping Build Opportunities for Wealth Creation for Local Entrepreneurs Helping Build Vibrant Local Economies Helping Build Vibrant Local Economies Helping Build Foundation of Sustainable Peace Helping Build Foundation of Sustainable Peace Helping Build Sustainable Business Models for Social Enterprises Helping Build Sustainable Business Models for Social Enterprises

6 Goals and Objectives(in 10yrs): Establish at least 10 farm based and off-farm sustainable and viable community enterprises Establish at least 10 farm based and off-farm sustainable and viable community enterprises Develop at least 1500 community based entrepreneurs Develop at least 1500 community based entrepreneurs Establish direct joint venture investments with at least 10 business corporations, with LGUs (province, municipalities/cities and barangays) and with enterprising NGOs and POs and other civil society groups. Establish direct joint venture investments with at least 10 business corporations, with LGUs (province, municipalities/cities and barangays) and with enterprising NGOs and POs and other civil society groups.

7 Strategies and Programs (SE Promotion or Scaling-up) Community-Based Work (Participatory Local Governance, Access to Justice and Peace Building) Community-Based Work (Participatory Local Governance, Access to Justice and Peace Building) Capacity Building program for partner POs and LGUs on sustainable enterprises Capacity Building program for partner POs and LGUs on sustainable enterprises Joint venture partnerships with business corporations, enterprising NGOs/POs, Local Government Units (province, municipality/city and barangays) Joint venture partnerships with business corporations, enterprising NGOs/POs, Local Government Units (province, municipality/city and barangays) Business Development Servicing Business Development Servicing Market Development and Linkages (both for mainstream and niche markets) Market Development and Linkages (both for mainstream and niche markets) Capital Sourcing from Government, Donors and Business Corporations Capital Sourcing from Government, Donors and Business Corporations

8 KPMFIs CORE BUSINESS Helping Transform Agri-Based Poor Households to become Entrepreneurs

9 WHAT WILL BE OUR BUSINESS MODEL?

10 Rural Household Usual Situation in terms of Income and Expenses DailyWeeklyMonthlyQuarterlySeasonalYearly IncomeBananaCopraCoffeeCornRiceCassavaAbacca ExpensesFood School Baon Farm Inputs WaterElectricitySchoolTuitionRequirements Post harvest Services Context…

11 Rural Household Usual Situation in terms of Income and Expenses Result: Diminishing Capital Limited Capacity to Produce Low Production Low Income Poverty

12 Immediate Challenge… 1. Increase Farmers Income Daily – Weekly – Monthly – Quarterly – Semestral 2. Good Social Enterprise Triple Bottom Lines: a. Raise the Quality of Life of the Poor (Doing Good) b. Generate Social Enterprise Income (Doing Well) c. Address Social Issues (Doing Right)

13 DailyWeeklyMonthlyQuarterlySeasonalYearly ON-FARMDairy Egg Banana Cut Flower Vegetables Poultry Goat Vegetables Copra Coco Husk Lawi (broom) Coffee Corn Rice Cassava Abacca OFF-FARM SilhiG, Banig, Basket, Hand Craft, Post Harvest Facilities, Trading and Marketing Schedule of Harvest DailyWeeklyMonthlyQuarterlySemestralYearly BananaCopra Coconut Husk Corn Rice Cassava Current Situation TRANSFORMATION PROCESS RECLAIIM

14 Rural Enterprises thru Crop-Livestock- Aqua Integration-Intensification Model (RECLAIIM) INCOME SOURCE DailyWeeklyMonthlyQuarterlySeasonalYearly ON-FARMDairy Manure Egg Banana Cut Flower Vegetables Poultry Goat Meat Vegetables Organic Fertilizer Copra Husk Lawi Coffee Corn Rice Cassava Abacca Cattle Meat OFF-FARM Silhig Banig Basket Hand Craft Post Harvest Service Trading and Marketing

15 Investment per Household LivestockInputInvestment Needed Projected Income per Month Backyard Poultry Production 1,000 heads 120,000P 6,000 Goat Dairy and Meat Production 20 Heads120,000P 6,000 Cattle Dairy and Meat Production 3 heads150,000P 10,000 TOTALP 390,000P 22,000

16 TRANSFORMATION PROCESS OVERVIEW Production Processing Marketing Farmer Supplier/ Transporter s Processo rs Whole- salers Exporters Retailers Local Market External Market Input Supplier Intra-chain/Inter-actor support, coordination, facilitation and consolidation and Supply Chain Management Business Devt. Services Community Development Work Multiplier Farm (Research and Development) Market Development Donors Value Chain Support ers MFI/BANKS GOVT. NGOS BUSINESS CORPORATION Value Chain Actors KPMFI core interven- tion and Programs Basic Value Chain Franchising Development

17 WHAT WILL BE OUR BUSINESS DESIGN?

18 Manok Mindanaw Backyard Poultry Production Project 2006 Context: Provide additional Household income Provide additional Household income Maximizing productive local resource (land, labor, water and indigenous materials) Maximizing productive local resource (land, labor, water and indigenous materials) Revolutionize the poultry industry through backyard poultry project (breaking tradition) Revolutionize the poultry industry through backyard poultry project (breaking tradition)

19 Current Trend and System of Broiler Industry in the Philippines : Commercial Contract Grower (Conventional) Large Contract Growers 120,000 birds/Grower 24Flockman : 1 Supervisor (25% Labor and 75% Owner) Supplier 2 Integrator -Magnolia, Bounty, GAMA, ACI Integrator Inputs -DOC - Feeds -Vaccines, Medicines - Technical Supplier 3 Supplier 1 Feed Mill Contract Agreement : ALW = 1.4 HR = 95% FCR = 1.85 GF = Pph 8.00/bird Dressing Plant Marketing Distribution Fresh, Frozen and Processed Product Output day old chicken Food Processing

20 Revolutionizing the Broiler Industry in the Philippines : Commercial Contract Grower to Backyard Contract Grower Backyard Contract Growers 120, birds/Grower 120, birds/Grower 200 Households 100% GF goes to the Household Integrator ACI/Sr. Pedro LM Inputs -DOC - Feeds -Vaccines, Medicines - Technical Suppliers Dressing Plant Marketing Distribution Fresh, Frozen and Processed Product Feed Mill Output day old chicken Contract Agreement : ALW = 1.4 HR = 95% FCR = 1.85 GF = Pph 8.00/bird Food Processing KPMFI FACILITATOR, ORGANIZER AND CONSOLIDATOR KPMFI KPMFIs Fee = 2/kl Management Fee = 3% of total INPUT Cost (Pph 1.40/kl) Household BACKYARD MODEL

21 KPMFI INTERMIDIARY, FACILITATOR, ORGANIZER AND CONSOLIDATOR Warehouse and Logistics Trucks (1 chickvan and 2 harvester with crates) Setup of Admin and Finance Technical Persons Revolutionizing the Broiler Industry in the Philippines : Commercial Contract Grower to Backyard Contract Grower Initial Investment of 3 M Warehousing Sampling and Harvesting Technical Training on Broiler Mngmt. Technical Monitoring Recruitment, Orientation and COing Delivery and Distribution Billing and Payment Growers Assessment and Programming Contract Agreement : ALW = 1.4 HR = 95% FCR = 1.85 GF = Pph 8.00/bird KPMFIs Fee = 2.00/kl Management Fee = 3% of total INPUT Cost (Pph 1.40/kl) 700 Households engage into Contract Growing

22 What we have done so far…. # HH# DOCGrowers Net IncomeGrowers Net Loss ,429 1,303, ,355, , Totals 834,629 5,659, , Observation: 1.Growers Buy out per bird is only 6.78/bird 2.11% net loss from the supposedly total net income of the growers 3.Almost 400% increase of total Day old Chick from 2006 to % increase of Household engage in contract growing (2006 – 2007) 5.Involving 2 Municipality and 1 City with a total of 59 Barangays 6.Average Growers Net Income 2006 – Pph 5,257.59/grower 2007 – Pph 6,649.13/grower

23 # DOC Harvested Harvest Recovery Average Live Weight Feed Conversion Rate 550, , % % harvest recovery is lower of 3% of the target HR of 95% 2.Average Live weight is significantly higher to the target ALW (more percentage of oversize) 3.FCR is significantly good (feed conversion rate) AS of May 2008 Finance ?

24 HH Growers Projected Income ItemUnit Unit price Quantity Cost FARM Inputs Cost Day Old Chickbird , CBM (Chick booster mash)sack , BSC (Broiler Starter Crumble/Mash)sack , Total volume of Feedssack , Cost of Medicines (2.00/bird)pesos Total Input Cost 11, Hauling Charges 0.5/DOCbird /SACKsack Total Hauling Cost Total Cost (Inputs and Hauling Charges) 12, Interest Income (3% of the total farm inputs) Total Cost of Inputs and interest 12, Sales per kl of the total 1.45 ALW with 5% mortality) 14, Chicken Dungsack Gross Sales 14, Gross Income 1, Profit per Bird 8.80 Assumptions: FCR 1.95 ALW 1.45 HR95% Buy-out per Kilo52

25 Site Inspection of the Proposed BBPP Basic Orientation on BBPP (1 day) Inspection of poultry house and equipment and approval Technical Training on Broiler Management and Scheduling Final Preparation of Housing and Brooding Area. Delivery of Initial INPUTs (feeds and medicine) Monitoring on Growing Stage Delivery of Feeds Placement of Day Old Chick (DOC) Delivery and Administration of Vaccines Brooding Period (14 days) Harvesting and delivery to Dressing Plant (35th day) Sampling for Harvesting Billing to ACI and Grower Payment to Growers (15 days after harvest) Payment to Growers (15 days after harvest) Growers Evaluation and Scheduling for Next Cycle Approval and Signing of MOA – Memorandum of Agreement Project Process Overview Construction of Poultry House and Purchase of basic facilities and equipment Next Production Cycle (21 days after harvest) Payment and Collection of Payment from ACI

26 Site Inspection of the Proposed BBPP Basic Orientation on BBPP (1 day) Approval and Signing of MOA – Memorandum of Agreement Construction of Poultry House and Purchase of basic facilities and equipment Inspection of poultry house and equipment and approval Technical Training on Broiler Management and Scheduling Final Preparation of Housing and Brooding Area Delivery of Initial INPUTs (feeds and medicine) Pre-production Stage Monitoring on Growing Stage Delivery of Feeds Harvesting and delivery to Dressing Plant (35th day) Sampling for Harvesting Placement of Day Old Chick (DOC) Delivery and Administration of Vaccines Brooding Period (14 days) Billing to ACI and Grower Payment to Growers (15 days after harvest) Payment to Growers (15 days after harvest) Growers Evaluation and Scheduling for Next Cycle Next Production Cycle (21 days after harvest) Payment and Collection of Payment from ACI Production StagePost-production Stage

27 Backyard Broiler Production Project Flow Offsetting of Inputs Purchases and Sales of Stocks with Hauling Cost Offsetting of Purchases of Stocks and Sales of INPUTS and Hauling Cost ANACIANO, INC. (INTEGRATOR) KPMFI (INTERMEDIARY) BACKYARD GROWERS Supply of INPUTS and Technical Services Logistics (Delivery and Distribution) Production ( days of broiler raising) Processing Logistics (Harvest, Consolidation and Hauling to Dressing Plant) Produced Chicken Billing and payment Stakeholders

28 ANACIANO, INC. (INTEGRATOR) KPMFI (INTERMEDIARY) BACKYARD GROWERS Supply of INPUTS and Technical Services Logistics (Delivery and Distribution) Production ( days of broiler raising) Processing (Dressing Plant) Logistics (Harvest, Consolidation and Hauling to Dressing Plant) Produced Live Chicken Production Sr. Pedro Litson Manok Premium Size (20%) Premium Size (50% ) Manok Mindanaw The Healthy Chicken Manok Mindanaw The Healthy Chicken Marketing Out Size (US/OS (30%)

29 Distribution Promotion Merchandising Sales/Collection Packaging Bulk Individual Pack Domestic Dealer Retailer Hotel/Res Supermarkets ExportImporter CDO, Iligan, Ozamis,Zamboanga, Gignoog, Butuan, Surigao, Davao, Bukidnon... Cebu, Bohol, Dumaguete, Iloilo, Bacolod Malaysia, Brunie, Singapore… Dressing Plant NCR ? Target Costumer Target Area Premium Size (2,000 kls) Out Size (US/OS ) 3,000 kls. Out Size (US/OS ) 3,000 kls.


Download ppt "COMMUNITY WEALTH CREATION INITIATIVES IN MINDANAW KATILINGBANONG PAMAHANDI SA MINDANAW FOUNDATION INC. The Social Enterprise Institution of Balay Mindanaw."

Similar presentations


Ads by Google