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A CASE STUDY I N CAMARINES NORTE AREA FISHING COOPERATIVE I N THE PHILIPPINES

Jean Ho Toh FAO/UNDP Assis tance t o Cooperative Development

Bureau o f Cooperatives Development Manila, Ph i l i pp ines

Abs t rac t

This paper p r e s e n t s a case s tudy o f an Area F ish ing Cooperative i n t h e province o f Camarines Norte, Ph i l i pp ines . I t desc r ibes t h e process o f organiz ing and ope ra t ing t h e coopera t ive , and a l s o the cont inuing e f f o r t s s i n c e then t o develop marketing s k i l l s and o u t l e t s . There i s a three-phase p l an f o r t h e cooperat ive o u t l i n e d i n t h e paper; t h e long-range ob jec t ive o f t h e P r o j e c t i s t o improve t h e s o c i a l and economic development o f t h e fishermen. Even though t h e coopera t ive has no t been ope ra t ing f o r long, i t s p o t e n t i a l i s apparent , and wi th continued motivat ion and good management it could prove t o be very succes s fu l .

CONTENTS

Page - ................................. Programme I d e n t i f i c a t i o n 610

Organizat ion ............................................. 612

................................................ Operation 615

................................................. Train ing 619

Management ............................................... 620

Problems Encountered ..................................... 621

............................................. Future Plans 622

............................................... Conclusion 626

PROGRAMME IDENTIFICATION

General s i t u a t i o n of t h e smal l - sca le f i s h e r i e s i n t h e n e c e s s i t y of t h e coopera t ive

The smal l - sca le f i s h e r i e s s e c t o r has c o n s i s t e n t l y produced about 52% of t h e t o t a l f i s h product ion i n t h e Ph i l i pp ines as of year 1978. This means t h a t a r t i s a n a l fishermen have made a l a r g e con t r ibu t ion t o f i s h product ion and t o p ro t e in supply f o r t h e country. However, t h e i r f i n a n c i a l rewards a r e not commensurate wi th t h e i r product ion s i n c e boat owners and f i s h t r a d e r s r e c e i v e most of t h e p r o f i t s .

It was thought necessary t o organize an e f f i c i e n t Area F ish ing Cooper- a t i v e t o c a r r y out a l l t h e necessary bus iness opera t ions and s e r v i c e a c t i v - i t i e s , a s su r ing fishermen t h a t they would make enough income t o maintain a decent l i v i n g ; a t t h e same t ime, t hey would be a b l e t o pay back t h e c a p i t a l investment made f o r t h e cons t ruc t ion o f f i s h i n g 6 o a t s and o the r smal le r loans . The coopera t ive was e s t a b l i s h e d i n s e l e c t e d a r e a s with t h e fol lowing ob jec t ives :

( i ) To a d j u s t t h e supply of f i s h products i n accordance with market demand t o minimize d r a s t i c p r i c e f l u c t u a t i o n s .

( i i ) To reduce unnecessary c o s t s , e i t h e r ope ra t iona l o r marketing.

( i i i ) To supply member-fishermen with r e l i a b l e product ion i n p u t s a t reasonable p r i c e s .

( i v ) To inc rease t h e ca tch by t e c h n i c a l improvements.

I t i s c l e a r t h a t t h e development process i n municipal f i s h e r i e s i s made much more complex by s o c i a l and c u l t u r a l cons ide ra t ions , bad geographic condi t ions , l a c k of b a s i c i n f r a s t r u c t u r e s , low s tandards of educa t ion , l a c k of c r e d i t and t h e severe shor tage of indigenous en t repreneura l and t e c h n i c a l expe r t i s e . The s i t u a t i o n of Mercedes, Camarines Norte, is not except iona l .

I d e n t i f i c a t i o n

Before t h e organiza t ion was discussed i n d e t a i l , t h e s t a f f observed t h e e x i s t i n g phys i ca l f a c i l i t i e s and o rgan iza t iona l s i t u a t i o n o f fishermen, a s wel l a s t h e input and output of smal l - sca le f i s h e r i e s . For tuna te ly , Mercedes had r e l a t i v e l y good f a c i l i t i e s , with a l a r g e number of "Samahang Nayon" ( s N ) ~ / f o r fishermen and s i z a b l e q u a n t i t i e s of f i s h t o be c o l l e c t e d . However, SNs do not own any kind of f a c i l i t i e s . Most o f t h e s e i n f r a s t r u c t u r e s a r e owned by t h e Municipal Government and p r i v a t e bus iness groups.

The d e t a i l e d observa t ions were:

( a ) The phys ica l f a c i l i t i e s

The f i shermen ' s groups do not have any kind of f a c i l i t i e s . The

I/ A term f o r pre-cooperat ive. -

Municipal Government has a f u l l y cemented landing p i e r where a l l f i s h caught by smal l - sca le f i s h i n g boa t s and commercial boa t s a r e brought and s o l d t o s e v e r a l o u t l e t s , mostly through t r a d e r s . The Municipal Government charges fishermen and t r a d e r s var ious f e e s f o r us ing t h e p i e r .

There a r e f o u r i c e and coid s to rage p l a n t s , one of which is owned by BFAR (Bureau o f F i s h e r i e s and Aquatic Resources) and t h r e e 5y p r i v a t e bus iness companies. Thei r i nd iv idua l c a p a c i t i e s range from 5 me t r i c t ons t o 30 me t r i c t o n s per day i n cold s to rage . Their capac i ty could not meet t h e requirements of fishermen i n peak season, even i f t h e s e p l a n t s were i n f u l l opera t ion . The p l a n t s a r e never expected t o be i n f u l l ope ra t ion , so t h a t i c e i s suppl ied t o fishermen from o the r a r e a s , mostly from Lucena C i t 5 7 .

( b ) F ish ing ground and gear

The major f i s h i n g ground is San Miguel Bay southwest of down- town Mercedes, 30 t o 40 km away. I t i s loca t ed f u r t h e r from t h e marketing p lace than fror: t h e f ishermen's v i l l a g e s .

Some fishermen a l s o go out f u r t h e r t o t h e northwest a r e a of t h e P a c i f i c Ocean i n o rde r t o ca t ch tuna and spanish mackerel by us ing hook and l i n e . I t u s u a l l y t a k e s 6 hours t o t h e f i s h i n g ground.

The gea r t hey a r e us ing i s mostly bag n e t , small g i l l n e t , beach s e i n e , shrimp t r a w l , t r o l l i n g and hook and l i n e .

( c ) Avai lable boa t s and ca tch

No i n t e g r a t e d s t a t i s t i c s on boa t s and ca t ch were a v a i l a b l e from t h e government agencies . 3ased on d a t a from DEP (Development Bank of t h e Ph i l i pp ines ) 493 boa t s were cons t ruc ted i n t h e Mercedes a r e a wi th DBP loans , but an accu ra t e sdrvey showed t h a t 169 boats a r e i n ope ra t ion . A t same t ime s t a f f had t o e s t ima te t h e average annual ca t ch by boa t on t h e b a s i s of in te rv iews with t h e fishermen and spot checking; it might r e s u l t i n 2 . 7 me t r i c t o n s . This means t h a t t h e coopera t ive may c o l l e c t from nember-fishermen 456 metr ic t o n s y e a r l y , i f t h e coopera t ive can absorb a l l 160 boats .

The complicated sha r ing system between fishermen and owner/ owners had t o be given some a t t e n t i o n , because t h e r e t u r n t o t h e fishermen per u n i t of e f f o r t was very low. This is one of t h e o b s t a c l e s t o product ion increment. There i s very l i t t l e i ncen t ive f o r fishermen t o i nc rease t h e i r t o t a l ca t ch under t h i s system.

( d ) Marketing

The e x i s t i n g f i s h marketing p r a c t i c e f o r small-scale fishermen i n Mercedes is im7lemented by s e c r e t bidding o r "whispering" on combined spec i e s which a r e displayed on a cementedfloor twice a day. I n r e a l i t y ,

t he re is no r e a l marketing because t h e p r iva te t r a d e r s con t ro l t h e producers: they d i c t a t e t h e buying p r i c e from fishermen and manage t h e f i s h vendors i n markets by providing them with f i s h on a c r e d i t bas i s . This est imate system on combined species , and t h e high commission paid t o t r a d e r s (from-7% t o 10%) a r e two of t h e b i g disadvantages faced by t h e fishermen.

A s f o r p r i c e formation, t h e r e a r e two p r i c e s , one i s t h e cash p r i c e and t h e o the r i s t h e c r e d i t p r i ce . The l a t t e r i s 10% higher than t h e former. Therefore, fishermen hardly see cash a f t e r deducting gasol ine and o the r f u e l c o s t s , high commissions, e t c . , even under t r a d e on a cash b a s i s .

( e ) Feas ib le organiza t ional group

Mercedes has 1 6 SNs f o r fishermen which a r e t h e bas ic founda- t i o n of the cooperat ive, but most member-fishermen a r e s c a t t e r e d on i s l ands o r shore l ine v i l l a g e s which cannot be reached by land t r anspor ta t ion . For these people, f i s h i n g is t h e i r s o l e occupation, not l i k e people i n o the r a reas who engage i n both farming and f i s h i n g .

2. ORGANIZATION

Government policy f o r organizat ion

By v i r t u e of t h e l e t t e r of implementation No. 7 pursuant t o Pres i - d e n t i a l Decree No. 1 which implemented t h e Government In tegra ted Reorganiza- t i o n Plan, MLGCD (Ministry of Local Government and Community Development) i s i n charge of pursuing th ree ob jec t ives , and one of t h e s e objec t ives i s t o pursue vigorously t h e i n s t i t u t i o n a l i z a t i o n of a dynamic and purposeful cooperative system. The BCOD ( Bureau of Cooperative Development ) of t h e Ministry was charged with t h e promotion and development of small f ishermen's cooperatives.

The BCOD through t h e f i e l d workers of t h e Ministry has been organiz- ing SNs o r pre-cooperatives f o r fishermen.

The SN i s a pre-cooperative pr imar i ly composed of t h e following:

( i ) An owner of a small f i s h i n g boat l e s s than 3 tons gross.

( i i ) Small fishermen working on f i s h i n g vesse l s f o r wages o r on a shar ing b a s i s .

( i i i ) Owners of fishponds not more than one ( 1 ) hectare i n s i z e .

( i v ) Lessees of fishponds not more than t h r e e ( 3 ) hectares i n s i z e .

(v) Small processors of f i s h o r f i she ry products.

The SN is a small organizat ion with a minimum of 25 and a maximum-of 200 members. It does not engage i n any business a c t i v i t y . Their full-pledged

coopera t ive undertakes bus iness func t ions f o r them. The SN i s a development process i t s e l f and s t ands on t h r e e p i l l a r s . These a r e a cont inuous educa- t i o n a l process , a sav ing process f o r c a p i t a l formation and a d i s c i p l i n a r y process .

The educat ion process

In t h e SN, t h e members undergo a t o t a l of s i x t y (60 ) weeks of educa- t i o n a l programmes. I n t h e o rgan iza t iona l phase (Phase I ) , t h e members have t o t a k e t h e e i g h t major l e s sons before t hey can organize t h e i r SN. Af te r t hey a r e organized and r e g i s t e r e d with t h e B C O D , thereby g iv ing them a l e g a l ex i s t ence , they a r e now ready f o r Phase I1 which is t h e developmental phase.

I n Phase 11, t h e f i r s t programme i s a management course f o r t h e Board o f D i rec to r s of t h e SN. Conducted over a per iod of t e n ( 1 0 ) weeks t h i s course c o n s i s t s of 20 l e s s o n s designed t o develop i n t h e o f f i c e r s t h e knowledge, s k i l l s and a t t i t u d e s necessary f o r i n t e l l i g e n t l eade r sh ip and e f f e c t i v e management of t h e SN.

The second course under Phase I1 i s t h e t e c h n i c a l t r a i n i n g which i s given t o a l l members of t h e SN. This c o n s i s t s of 20 l e s s o n s conducted over a per iod of 20 weeks i n such f i e l d s a s improved techniques , f i s h process ing , e t c . The l e s sons a r e accompanied by a c t u a l demonstration p r o j e c t s . The next course i s concerned with product s p e c i a l i z a t i o n . Given t o a l l members of t h e SN, t h i s course c o n s i s t s of e i g h t ( 8 ) l e s sons about c e r t a i n s k i l l s r e l evan t t o t h e needs and requirements of p a r t i c u l a r a r e a s .

The l a s t course under Phase I1 is an abridged management t r a i n i n g f o r a l l SN members. Consis t ing of 1 2 l e s sons , t h i s i s conducted over a 12- week per iod .

When a SN member has s a t i s f a c t o r i l y completed a l l t h e l e s s o n s o f Phase I and 11, he i s considered a graduate of t h e "PAMANTASAN SA NAYON" (School of B a r r i o ) , which i s s o r t of an open v i l l a g e u n i v e r s i t y . He i s given a diploma f o r t h i s .

The c a p i t a l formation process

The sav ing programme i n t h e SN is an at tempt t o gene ra t e f i nanc ing from t h e g r a s s r o o t s l e v e l . I n t h e p a s t s e v e r a l decades, t h e Government launched one programme a f t e r another , each geared t o he lp t h e fisherman acqu i r e low c o s t c r e d i t f o r h i s f i s h i n g inpu t s . The r e s u l t i n g inc rease i n ca t ch and income f a i l e d t o develop t h e h a b i t o f sav ing; e x t e r n a l f i nance was not rep laced by i n t e r n a l l y generated c a p i t a l . Hence, while t h e Government and o the r i n s t i t u t i o n a l lending agencies were channel l ing m i l l i o n s of pesos i n t o t h e main s t ream of a g r i c u l t u r a l product ion, very l i t t l e , i f any, was generated i n t h e form of sav ings by t h e fishermen. The Barangay Saving Programme is c a l c u l a t e d t o s t r eng then t h i s weak spo t i n t h e economy. A s a r u l e , a l l members of a SN must pledge t o p a r t i c i p a t e i n t h e planned, savings a c t i v i t i e s . The SN has two major funds:

( a ) The barangay saving fund

It is b u i l t by saving t h r e e ( 3 ) percent of a l l loans obta ined by t h e fishermen members from any government f inanc ing i n s t i t u t i o n . I f t h e n e m b e ~ i s non-borrowing, he saves a t l e a s t f i v e ( 5 ) pesos a month. All t h e s e a r e placed i n t h e Barangay Savings Fund of t h e SN i n t h e account of t h e member.

( b ) The barangay guarantee fund

It i s b u i l t through t h e members' con t r ibu t ions of one (1) pe r - cen t of s a l e proceeds of ca t ch pe r every f i s h i n g t r i p o r i t s equ iva l en t va lue , which w i l l s e rve a s a source of funds t o pay:

( i ) insurance premiums of t h e fishermen

( i i ) guarantees of payment of loans f o r fishermen

( i i i ) c a p i t a l i z a t i o n of a fu l l -p ledged coopera t ive .

The d i s c i ~ l i n a r v Drocess

Through t h e t h e o r e t i c a l and p r a c t i c a l coopera t ive educa t iona l pro- c e s s , t h e SN i s t augh t s e l f - d i s c i p l i n e , a necessary f a c t o r i n t h e success of any o rgan iza t ion inc luding coopera t ives .

Organizat ional approach

One of t h e s e r i o u s obs t ac l e s t o t h e organiza t ion waS t h e s t r o n g negat ive a t t i t u d e of t h e fishermen, which seemed t o stem from t h e i r bad experiences with t h e coopera t ive programme i n t h e . p a s t . A t f i r s t , t hey d i d not g ive any chance t o exp la in t h e programme. They p r e f e r r e d ind iv idua l i sm o r a small group system, because they d i d n ' t l i k e t h e s o p h i s t i c a t e d s t r u c - t u r e , and they were a f r a i d of g e t t i n g away from t r a d e r s t o whom they had been connected f o r a long t ime. The s t a f f decided t o make a core group which were s e l e c t e d from f i v e ( 5 ) prominent SNs and approach them from a psychological po in t o f view. The group v i s i t e d each b a r r i o and d iscussed wi th each person socio-economic condi t ions . The d i scuss ion forced t h e fishermen t o compare t h e p re sen t s i t u a t i o n with t h e p a s t , hopefu l ly making them understand t h a t t h e present system could not improve t h e i r we l f a re , and f i n a l l y l ead ing them t o accept t h e coopera t ive programme. A t e c h n i c a l explana t ion followed based on t h e f e a s i b i l i t y s tudy. This explana t ion covered t h e marketing o u t l e t , c o l l e c t i o n system, input and output and manage- ment system. It took almost t h r e e ( 3 ) months.

Two k inds of membership were considered i n t h e o rgan iza t ion . One was ind iv idua l membership and t h e o t h e r was group membership by SN u n i t . Af te r long d i scuss ions with t h e co re group and BCOD o f t h e Ministry, it was recognized t h a t t h e l a t t e r i s much more p r a c t i c a l and e f f e c t i v e i n achieving t h e goa l of t h e coopera t ive ; s i n c e most of member-fishermen a r e l i v i n g i n widely s c a t t e r e d i s l a n d o r s h o r e l i n e v i l l a g e s , it is hard f o r t h e cooperat ive t o manage them ind iv idua l ly o r d i r e c t l y .

The co re group could then s t a r t t h e next plan t o c o l l e c t money immediately from each SN. The fund was c o l l e c t e d by each SN u n i t w i th t h e s t rong support o f t h e p re s iden t of SN. I t took t h r e e ( 3 ) months t o c o l l e c t t h e funds r equ i r ed t o r e g i s t e r t h e coopera t ive as a l e g a l e n t i t y , - F26 500 o r US$^ 600. This was s l i g h t l y above t h e minimum amount r equ i r ed of F25 000.

Two t r a i n i n g s e s s i o n s , a Pne-Membership Educat ional Programme and Management on SN, were provided i n o rde r t o g ive them t h e q u a l i f i c a t i o n s a s member-fishermen and make a s t rong foundat ion f o r group members wi th t h e SN u n i t .

R e g i s t r a t ion

The r e g i s t r a t i o n took p l ace on 1 September 1978 becoming t h e f i r s t l e g a l e n t i t y under t h e present law of t h e MLGCD, n ine ( 9 ) months a f t e r t h e i d e n t i f i c a t i o n t r i p was made. It is c a l l e d Camarines Norte Area Fish ing Cooperative (CNAFC). I t is composed of 1 2 SNs f o r fishermen and 1 pre- coopera t ive f o r processors , a l l under group membership. The t o t a l number of members i s 330 fishermen inc luding 35 processors . Each SY pa id from P1 000 t o P3 000 f o r capi ta l . formation, with PI00 a s t h e membership f e e .

A s a r e s u l t o f t h e e f f o r t s of BCOD and t h e Minis t ry wi th c l o s e co l l abo ra t ion from BFAR, one coopera t ive i n Mercedes a r e a was r e g i s t e r e d . Its c h a r a c t e r i s t i c s a r e ,

I t i s composed of 1 2 SNs and 1 pre-cooperat ive a s group membership.

Most of member-fishermen l i v i n g i n t h e s c a t t e r e d i s l a n d s of s h o r e l i n e v i l l a g e s a r e on a pure ly g r a s s r o o t l e v e l .

The coopera t ive does not own any kind of f a c i l i t i e s r equ i r ed f o r developing marketing o u t l e t s .

The coopera t ive was t o s t a r t ope ra t ing with small c a p i t a l which w a s c o l l e c t e d only from its own member-fishermen.

3. OPERAT I ON

The Board of Di rec tors ( t hen 5 members, bu t now increased t o 9) d i s - cussed t h e s t r a t e g i e s f o r management and marketing p l ans with t h e a s s i s t a n c e of an FA0 expe r t ; they considerea t h e var ious problems of smal l - sca le f i s h e r i e s , and decided t o s e t up short- term and long-term programmes which can be aeveloped i n t h r e e phases:

( a ) Phase I

( i ) To concent ra te f i r s t on l o c a l markets, a s commission agents , i n o rde r t o i nc rease both c o l l e c t i n g and market- ing experience.

( i i ) To pay cash t o member-fishermen.

( i i i ) To decrease t h e present commissions of 7.10% when mar- ke t ing through p r iva te buyers, t o 5% when marketed through t h e cooperat ive.

( i v ) To strengthen membership by encouraging fishermen t o break t h e i r present s trong l i n k s with p r iva te buyers; t h i s can be accomplished by paying t h e small debts of t h e fishermen. The cooperative w i l l then rece ive an increased volume of f i s h from i t s members.

( v ) I f revenue permits, t o r e c r u i t some s t a f f .

( v i ) To apply f o r t h e CDLF government loan (Cooperative Development Loan Fund) based on t h e f e a s i b i l i t y study paper.

( v i i ) To continue e f f o r t s t o change t h e present es t imate system i n t o a weighing system.

(b ) Phase I1

( i ) To concentrate on developing outs ide markets, par t icu- l a r l y Manila wholesale markets.

( i i ) To s t a r t t h e f i r s t s t age of a co l l ec t ion system by using boats owned by each SN u n i t , i n order t o save opera t ional c o s t s of boats .

( i i i ) To improve f i s h q u a l i t y by introducing c h i l l i n g tanks , washing t a b l e s and s h e l t e r s t o protec t t h e f i s h from sun, and a l s o insula ted boxes which could be f ixed i n t h e boats .

( i v ) To implement a p r i c e monitoring system by rad io .

( v ) To supply gasoline and kerosene t o member-fishermen on a da i ly c r e d i t bas i s .

( v i ) To develop t h e auction system which t h e cooperat ive w i l l use when r e s e l l i n g f i s h t o l o c a l buyers a f t e r making up box u n i t s according t o species .

( c ) Phase I11

( i ) To develop a main co l l ec t ion programme by using t h e c o l l e c t i o n boat of t h e cooperative, and s e t t i n g up severa l c o l l e c t i o n p laces on i s l ands o r shore l ine a reas .

( i i ) To begin f i s h d i s t r i b u t i o n by using i t s own insula ted t ruck and uni f ied conta iners .

( i i i ) To develop input bus inesses l i k e spa re p a r t s f o r engines and o t h e r m a t e r i a l s needed f o r f i s h i n g , on a c r e d i t b a s i s .

( i v ) To develop processing technology i n o rde r t o g e t high q u a l i t y products , and a l s o t o provide f o r s u r p l u s f i s h , thereby s t a b i l i z i n g p r i c e s .

O ~ e r a t i o n i n l o c a l market

Since t h e CNAFC s t a r t e d opera t ion on 15 October 1978, f o u r ( 4 ) SNs among 1 2 SNs of new fishermen have been involved i n t h e coopera t ive market- ing o u t l e t , because t h e CNAFC was not i n a s i t u a t i o n t o break t h e r e l a t i o n - s h i p between t h e t r a d e r s and t h e fishermen immediately by supplying phys i ca l commodities. However, t h e CNAFC could do two t h i n g s , which were t o g e t t h e t r a d e r ' s commission down up t o 5% and pay cash whenever t h e f i s h was brought by member-fishermen.

A s one s t r a t e g y t o change t h e e s t ima te system, t h e CNAFC contac ted t h e FFVA (Fresh F ish Vendor Associat ion) i n Daet, a l a r g e mun ic ipa l i t y 7 km away from Mercedes, and succeeded i n making an agreement with them t o d e l i v e r f i s h t o t h e i r a s s o c i a t i o n under a weighing system by s p e c i e s , wi th t h e u n i t being a r ec t angu la r wooden box under a weekly f i x e d p r i c e system. The p r i c e would be determined a t a meeting of producers and vendors based on t h e average p r i c e of t h e last month and a p r o j e c t i o n f o r t h e coming month; s e v e r a l f a c t o r s would be considered t o s e t t h e p r i c e . F i sh w a s c o l l e c t e d , s o r t e d by spec i e s , weighed, washed, boxed wi th i c e and suppl ied t o them a t 0800 every morning. However, it d id not cont inue f o r more than 3 days, because some member-fishermen r e tu rned t o t h e t r a d i t i o n a l way: t h e e s t ima te system on combined f i s h . They explained t h a t it would g ive more b e n e f i t s and h igher p r i c e s than t h e weighing system. There was no l o g i c a l reason f o r t h i s s i n c e no fisherman could even g ive t h e exac t p r i c e p e r kg with t h e e s t ima te system. It was a psychological r e a c t i o n a g a i n s t a new idea .

The one year record on f r e s h f i s h t r aded only through t h e l o c a l market showed an amount of P477 000 from November 1978 t o October 1979 and a monthly average of F40 000. The h ighes t amount with 7 SNs involved appeared i n February 1979, because t h e CNAFC formed 82 000 i n a s p e c i a l fund i n o rde r t o a t t r a c t more member-fishermen by paying o f f t h e small deh t s of members t o t h e t r a d e r s .

The development of marketing i s r e t a rded by t h e l a c k of sys temat ic economic experience of fishermen a s we l l a s of managerial s t a f f . This forced t h e CNAFC t o g ive p r i o r i t y t o t h e l o c a l market a t t h e beginning. The expec ta t ions from t h e l o c a l market a re :

( i ) It can develop marketing with small amounts of o p e r a t i o n a l fund, revolv ing money f a s t .

( i i ) It is a simple market t h a t they can e a s i l y adapt t o .

( i i i ) It can be developed without any s p e c i a l f a c i l i t i e s and equipment.

( i v ) I t can t each them what sys temat ic economic a c t i v i t y i s and how t o run and p r o t e c t it.

E x ~ e r i m e n t a l d e l i v e r v t o Malabon market

A t t h e o u t s e t , t h e CNAFC has funct ioned only a s a commission agency through t h e l o c a l market. However, r e c e n t l e v e l s of f r e s h f i s h t r a d e have dec l ined s i n c e t h e e a r l y months of year mainly due t o high p r i c e of gaso- l i n e , t h e commercial f i s h i n g 'season which runs from Apr i l t o October, and t h e l ack of t r a d e money r e s u l t i n g from t h e f a i l u r e t o c o l l e c t money from l o c a l buyers. This s i t u a t i o n has pushed t h e CNAFC t o s t e p up t o t h e second phase, t h a t i s t o develop s e v e r a l l a r g e marketing o u t l e t s inc luding Manila markets, with t h e c l o s e cooperat ion of CMSP (Cooperative Marketing System of t h e P h i l i p p i n e s ) .

Three t imes from 19 September t o 12 October 1979, f r e s h f i s h has been shipped t o Malabon f r e s h f i s h wholesale market i n Manila from Mercedes i n cooperat ion with CMSP under t h e t e c h n i c a l a s s i s t a n c e of a UN vo lunteer and FA0 expe r t . The main o b j e c t i v e s i n e x p l o i t i n g t h e wholesale market a r e ,

(i) To develop a l a r g e commercial t r a d e by con tac t ing t h e whole- s a l e r s d i r e c t l y .

( i i ) To change t h e present purchasing system from es t ima te t o a weighing system.

( i i i ) To in t roduce a q u a l i t y c o n t r o l programme t o fishermen and managerial s t a f f a s we l l a s t o salesman of CMSP through on- t h e - job t r a i n i n g .

( i v ) To in t roduce a p r i c e monitoring system t o managerial s t a f f and salesmen of CMSP by r a d i o and telephone i n t h r e e con- t a c t p o i n t s : Mercedes o f f i c e , CMSP o f f i c e i n Manila and Malabon market.

This demonstration could p o t e n t i a l l y r e s u l t i n a b i g development of commercial t r a d e i n f r e s h f i s h , provided t h e members' p a r t i c i p a t i o n l e v e l remains high. P a r t i c u l a r s of t h e demonstration a r e :

( a ) Co l l ec t ing f i s h

A t o t a l o f 1 441 kg of f r e s h f i s h was shipped t o Malabon market t h r e e t imes (111 kg t h e f i r s t t ime, and 751 kg t h e t h i r d t ime) . I t u s u a l l y took one day t o c o l l e c t t h i s quan t i t y . This i n d i c a t e s t h a t t h e d a i l y co l - lection could possibly increase t o 1 000 kg i n the future.

( b ) Improvement of handl ing, p re se rva t ion and d i s t r i b u t i o n

No l a r g e shrinkage was found i n t h e t r i a l shipments. It showed only 1 . 7 kg, f o r a t o t a l of 1 441 kg. I t means t h a t q u a l i t y c o n t r o l

could be achieved by us ing a c h i l l i n g system, and thereby reduce shr inkage t o l e s s t han 1% i n t h e Manila market. This r a t e of shr inkage was achieved i n t h e s e t h r e e shipments t o Malabon market by maintaining a temperature of 1. Q°C - -1.5 O C ( t h e same temperature as i n Mercedes be fo re d e l i v e r y ) . A s soon as f i s h was purchased by t h e marketing o f f i c e r of t h e coopera t ive , it was washed, s o r t e d , weighed and put i n t o c h i l l i n g t anks t o coo l t h e f i s h . I t took 2 t o 3 hours t o ge t t h e temperature of t h e f i s h down t o 1 ° C - l .S°C, mostly i n a mix o f 2 o f i c e t o 1 of water. Of course it depended on s p e c i e s and t h e temperature of f i s h a t t h e moment.

The 100 p l a s t i c con ta ine r s which were made i n A u s t r a l i a and suppl ied by BFAR t o t h e CNAFC were in t rosuced t o Malabon market when f i s h were d isp layed on t h e f l o o r . It had a favorable r e a c t i o n from buyers . It might seem premature f o r t h e CNAFC t o use t h e p l a s t i c con ta ine r s on a l l l i n e s of d i s t r i b u t i o n , cons ider ing t h e present s i t u a t i o n and t h e cond i t i on of marketing o u t l e t s and f a c i l i t i e s ; bu t it i s expected t h a t t h e CNAFC w i l l even tua l ly own a good i n s u l a t e d t ruck f o r shipment, and a t t h a t t ime t h e con ta ine r s w i l l be used.

( c ) P r i c e and p r o f i t

Between t h e l o c a l Mercedes market and t h e Malabon wholesale market i n Manila t h e r e was a 30.3% d i f f e r e n c e i n wholesale p r i c e . It c o s t s 22.3% more f o r t h e coopera t ive t o s e l l i n Manila; t h i s l e a v e s an 8% n e t p r o f i t . I f t h i s margin cont inues , it may be poss ib l e f o r t h e CNAFC t o become a se l f - suppor t ing coopera t ive sooner t han expected.

( d l P r i ce moni tor ing

One r a d i o was s e t up i n t h e o f f i c e of t h e CNAFC i n Mercedes where s t a f f and salesmen of CMSP monitored t h e p r i c e i n t h e two a r e a s through t h r e e contac t po in t s . During t h e demonstration it was no t used we l l , bu t it was a beginning: it can he lp t o develop a b i g t r a d e system i n t h e f u t u r e . This is e s s e n t i a l f o r developing t h e commercial t r a d e of f i s h no t on ly i n l o c a l markets but a l s o i n o u t s i d e markets.

4. T R A I N I N G

Tra in ing is one of t h e most important f a c t o r s a f f e c t i n g t h e cooper- a t i v e programme, and t h e goyernment has given p r i o r i t y t o va r ious types of t r a i n i n g . The concepts of i nc reas ing p roduc t iv i ty , e l imina t ing waste, making b e t t e r use of t h e resource , and c a p i t a l and l a b o r i n p u t s u s u a l l y begin wi th a form of t r a i n i n g . Under t h e present s i t u a t i o n , many f a c t o r s p r o h i b i t a "Self Help" o r "Do it Yourselfr ' method. Because t h e a r t i s a n a l f i s h i n g communities a r e u sua l ly i s o l a t e d , t h e r e i s l i t t l e exchange of information wi th ou t s ide sources o r contac t with more advanced a r e a s . Unless a c a t a l y s t i s provided from ou t s ide t h e a r t i s a n a l community, no th ing w i l l change. Therefore, t r a i n i n g can have cons iderable impact, depending on t h e form t h a t it t a k e s ; it nay only reach a few members, o r it may t a k e an unreasonable l eng th of t ime t o produce s i g n i f i c a n t r e s u l t s .

A t t h e beginning, t h e Government provided some t r a i n i n g t o a few members who were s e l e c t e d from each SN, but it could not expect s t r o n g feed-

back from member-fishermen. A v i s i t t o each b a r r i o would produce b e t t e r r e s u l t s by coming i n contact with each fisherman, even though it would take a long time.

Training programmes a r e usual ly designed f o r s p e c i f i c sub jec t s , but f o r cooperative management and marketing development they must be p r a c t i c a l . Thus, t h e types of t r a i n i n g which have been provided are:

Pre-membership Education, required t o be a member of t h e cooperat ive . Management on SN which i s necessary t o give each SN have s t rong foundation.

Mobile school t r a i n i n g t o a l l fishermen by v i s i t i n g each b a r r i o and d iscuss ing face t o face such sub jec t s a s produc- t i o n , cooperat ive operat ion and systematic cooperative mar- ke t ing plans.

A f i n a n c i a l con t ro l programme f o r managerial s t a f f .

Technical t r a i n i n g on f i s h handling, preservat ion , d i s t r i b u - t i o n and processing by demonstration method.

A management programme f o r t h e members of t h e Educational and Training Committee of SN i n order t o have them r e t r a i n t h e members of each SN u n i t .

5. MANAGEMENT

It s t a r t e d opera t ing with four ( 4 ) f u l l time s t a f f and one (1) p a r t time s t a f f according t o t h e management s t r u c t u r e out l ined i n t h e fea- s i b i l i t y study: a c t i n g manager, marketing o f f i c e r , a s s i s t a n t marketing o f f i c e r , cashier and bookkeeper. The ac t ing manager has been engaged both i n the o f f i c e of t h e p rov inc ia l government and t h e o f f i c e of the CNAFC because he was a Cooperative Development Officer i n l o c a l government. The CNAFC could not pay a high s a l a r y t o a qua l i f i ed manager under t h e projec ted revenue. The main revenue source is t h e 5% commission on t o t a l s a l e s of members' f i s h . A t p resent , t h e accumulated amount i s enough t o pay expenses, including the s a l a r i e s of t h e four ( 4 ) fu l l - t ime s t a f f . However, one year of business indica ted t h a t management is t h e most se r ious problem i n t h e development of a cooperat ive programme because of t h e low educational standards of t h e fishermen a s well a s of t h e board of d i r e c t o r s ; lack of experience of l e s s q u a l i f i e d managerial s t a f f s i n entrepreneural a c t i v i t i e s is a l s o a problem.

They had a good business through a simple marketing o u t l e t , but f a i l e d t o c o l l e c t money from l o c a l buyers. Also, they did not keep c l e a r records of t h e i r business t r ansac t ions from t h e beginning; money i n t h e bank and i n t h e o f f i c e was not balanced everyday, and f i n a l l y t h e i r expeq- d i t u r e s exceeded t h e i r income. They had no money f o r t rading.

6. PROBLEMS ENCOUNTERED

During t h e shor t h i s t o r y of t h i s cooperat ive, some problems i n organizat ion and operat ion have repeatedly appeared. These a r e :

Oreanizat ion

( a ) A s most of fishermen a r e sca t t e red i n many i s l a n d s o r shore- l i n e v i l l a g e s , t h e Government cannot i n t e r a c t with them e f f i c i e n t l y o r motivate them t o organize. A l o t of motivation i s needed t o change t h e i r t r a d i t i o n a l ways and negative a t t i t u d e s towards t h e cooperat ive.

( b ) It t akes too long time t o c o l l e c t money from t h e poor fishermen t o meet t h e minimum amounts of c a p i t a l f o r r e g i s t r a t i o n as a l e g a l e n t i t y , even though t h e SN is well organized by t h e Government and t h e Government reduced t h e cooperative c a p i t a l requirement from P I 0 0 000 t o P25 000. This was a s p e c i a l considerat ion because CNAFC was t h e f i r s t cooperative t o be l e g a l l y r eg i s t e red under t h e new law MLGCD.

Policy making

The key group i n t h e organizat ion is t h e Board of Direc tors which is i n charge of making t h e pol icy and providing c l e a r and c o r r e c t d i r e c t i o n s f o r t h e cooperative. Their low education standard and lack of experience make it impossible f o r them t o introduce new ideas and implement pol icy .

Marketing

( a ) Probably t h e most exacting t a s k i n t h e cooperat ive i s t h e development of a v iab le marketing plan. Its e f fec t iveness and f i n a n c i a l success depend a g rea t deal on planning and organizat ion. However, t h e r e is very l i t t l e knowledge of t h e concept of a managed marketing o u t l e t under t h e cooperative system.

( b ) The fishermen members of t h e organizat ion must p a r t i c i p a t e i n c o l l e c t i v e marketing scheme. The g r e a t e r t h e production, t h e g r e a t e r t h e impact on t h e markets. It- i s very d i f f i c u l t t o expect l a r g e q u a n t i t i e s of f i s h from a l l t h e member fishermen without any inputs from t h e CNAFC. For example, gasol ine could be supplied by t h e cooperative on a d a i l y c r e d i t bas i s .

( c ) The cash flow f o r d a i l y t r a d e was not s u f f i c i e n t , due i n some cases slow payments from t r a d e r s . Loans should be made a v a i l a b l e from a government agency t o increase t h i s cash flow i n order t o develop t h e markets.

( d ) Primary f a c i l i t i e s and equipment should be purchased with loans i n an e f f o f i t o prevent b i g harvest losses , and t o achieve f a s t d i s - t r i b u t i o n of f r e s h f i s h .

Management

( a ) The opera t ional plan must emphasize se rv ice t o t h e fishermen through good management p rac t i ces . Good management i s expensive and t h e Government o r Agencies must be prepared t o pay s a l a r i e s commensurate with

similar manageinent pos i t ions i n t h e p r iva te sec to r f o r an i n i t i a l shor t period. The cooperative w i l l l i k e l y f a i l i n management, if management per- sonnel i s se lec ted on t h e b a s i s of s a l a r y , r e s u l t i n g i n key pos i t ions being f i l l e d by unqualif ied and unseasoned people.

(b) Another common f a c t o r i n the f a i l u r e of management is d i s - honesty, even i f t h e Government does check t h e f i n a n c i a l s t a t u s pe r iod ica l ly .

7 . FUTURE PLANS

The most important f a c t o r i n t h e development of small-scale f i s h e r i e s i s how t o c o l l e c t f i s h from t h e member-fishermen and get commercial q u a n t i t i e s within a r e l a t i v e l y shor t t ime; t h i s must be accomplished i n order t o have regu la r d e l i v e r i e s and favourable p r i c e s with good bargaining power. This r equ i res t h e implementation of two th ings - one i s a c o l l e c t i o n programme and another is an input business which hopefully w i l l break up t h e r e l a - t ionsh ip with t r a d e r s , and absorb more p r a c t i c a l member-fishermen.

The f i s h market is located i n downtown Mercedes. This s i t u a t i o n has added t o c o s t s through increased consumption of gasol ine , s ince t h e d is tance between t h e f i s h i n g ground and marketing o u t l e t i s f u r t h e r than between t h e v i l l a g e and t h e f i s h i n g ground. It is a l s o t r u e t h a t t h e fishermen i n o the r munic ipal i t ies i n t h e same province - Vinzon, Paracale and Panganiban - a r e i n same s i t u a t i o n . They usual ly go out f i s h i n g near Calagua Is land. There- fo re , these a r e a s may be a l s o involved i n the c o l l e c t i o n programme under t h e marketing umbrella of t h e CNAFC.

The c o l l e c t i o n programme i s expected t o have severa l socio-economic benef i t s a s well :

(i) To reduce t h e opera t ional c o s t s of boats .

( i i ) To increase t h e s i z e of t h e catch provided t h a t fishermen a r e wi l l ing t o spend more time i n t h e f i s h i n g grounds.

( i i i ) To expect a favourable p r i c e by in teg ra t ing marketing out- l e t s and improving qua l i ty .

( i v ) To break t h e long t r a d i t i o n a l r e l a t ionsh ip with t h e t r a d e r s .

Introduction of marketing programme

Viable a reas

The CNAFC is composed of 1 2 SNs f o r fishermen and 1 Processing Association which a r e located mostly on i s l ands o r coas t l ine v i l l a g e s f a r away from town; 4 non-member SNs a r e a l s o located i n same a reas . This forces fishermen t o br ing t h e i r f i s h t o Mercedes by boat twice a day, morning and afternoon.

Besides Mercedes, t h r e e o ther a reas have 9 r eg i s t e red SNs f o r fishermen and 1 Association f o r fishermen, while the re a r e a l a r g e number

of non-member fishermen. There is no cement s t r u c t u r e being used f o r f i s h i n g a lone . Therefore, it i s necessary t o supply a l l t h e f i s h through 'an i n t e g r a t e d marketing o u t l e t by t h e CNAFC.

Avai lable boa t s

An accu ra t e survey i n Mercedes determined t h e a v a i l a b l e numbers of boa t s i n a l l a r e a s t hen compared t h e e x i s t i n g boa t s t o t h e number mentioned i n t h e DBP f i g u r e s . These boa ts conpr i se only 34% of t h e DBP f i g u r e . The f i g u r e s a r e below:

Municipal i ty

Mercedes Vinzon Paraca le Panganiban

DBF Record No. Avai lab le

Catch

No a v a i l a b l e record on f i s h product ion by boa t i n t h e a r e a w a s found. Therefore, s t a f f formulated an e s t ima te of t h e ca t ch based on a three-month record of r e a l bus iness with t h e CNAFC; each boa t s u p p l i e s 1 3 kg per t r i p , with 15 days f i s h i n g a month. It amounts t o 1.488 me t r i c t o n s year ly .

Municipal i ty

Mercedes Vinzon Paraca le Panganiban

Daily Catch Annual Catch

Fuel consumption

The r e s u l t s from a ques t ionnai re i nd ica t ed t h a t gaso l ine consumption per t r i p ranged from 10 l i t e r s t o 20 l i t e r s , averaging 15 l i t e r s ; t h i s depends on t h e f i s h i n g ground, t h e season and o t h e r cond i t i ons . This a l s o e s t ima te s t h e t o t a l kerosene consumption of boa t s by a r e a , and each boa t needs 5 l i t e r s of kerosene f o r two l i g h t s which a r e used t o attract f i s h a t n i g h t . The t o t a l d a i l y consumption of gaso l ine and kerosene is 4 770 l i t e r s and 1 590 l i t e r s , r e spec t ive ly .

Operation of boat

Since small-scale f i s h e r i e s a r e responsilale f o r a l a r g e po r t ion of t h e a r e a ' s t o t a l product ion of f i s h and s i n c e large. numbers of h o a t s gene ra t e

employment, one new f i s h i n g boat w i l l have far-reaching e f f e c t s . The cos t - ing of a new banca equipped with a 1 6 HP Briggs and S t r a t t o n engine and common f i s h i n g gear equipment is described below. The average annual land- ing of f i s h per boat is 2 340 kg and i s sold a t t h e average p r i c e of P7.62 per kg.

Investment

Wooden banca 16 HP engine Miscellaneous gears Nets 2 kerosene lamps

Fixed Annual Costs

Depreciation boat 20% f o r F3 800 ' 9 760 Depreciation gears 50% f o r # 7 0 0 350 Depreciation engine 33% f o r Y 3 500 1 155 I n t e r e s t 8% f o r P9 500 7 6 0 Insurance 5% f o r Y 9 500 47 5 Y 3 500

Variable Costs

Gasoline 180 days Kerosene, o i l , e t c . Repair of n e t s and gear Spare p a r t s f o r engine Repair of boat Rope, boxes, " t i k l i s " , e t c .

TOTAL ANNUAL COST Y15 600

TOTAL REVENUES 17 830

PROFIT BEFORE TAX 2 230

RETURN ON CAPITAL INVESTMENT 2 3%

PROFIT ON SALES 13%

BREAKEVEN CATCH I F PRICE IS Y7.62 2.047 kg

BREAKEVEN PRICE IF CATCH IS 2.340 kg Y 6.67

BREAKEVEN OPERATION DAYS OF BOAT IF PRICE IS Y7.62 AND AVERAGE CATCH PEX TRIP IS 1 3 kg 157 days

The motorized banca shows t h a t gasoline consumption is 67% of t h e annual va r i ab le c o s t , i nd ica t ing t h a t saving gasol ine r e a l l y would increase ppof i t s ; a l s o not iceable a r e t h e following:

( i ) The low t o t a l f i g u r e of p r o f i t before t a x .

( i i ) The extremely low p r o f i t re turnable t o fishermen under t h e present shar ing system where only 50% goes t o fishermen a f t e r deducting opera t ional and marketing c o s t s .

( i i i ) The low number of catch days per month.

Implementation programme

Collect ion ? laces

After considering t h e f i s h i n g grounds and t h e marketing p lace , th ree c o l l e c t i o n p laces w i l l be s e t up t o purchase f i s h and supply f u e l and o the r necessary mater ia ls .

The f i r s t place w i l l be located i n Masalong-salong SN and second be in Quinapaguian SN, on an i s l and . I n p r inc ipa l , both of t h e s e w i l l reach a l l t h e fishermen of the Mercedes a rea . The t h i r d place which w i l l be on Guintinua i s l and , Calugua, which w i l l a l s o reach a l l t h e fishermen from Vinzon, Paracale and Panganiban. These p laces w i l l have a marketing s h e l t e r and o ther f a c i l i t i e s including a c h i l l i n g tank, a s well a s some equipment l i k e a radio . (Appendix 1)

Crganization and managerial s t r u c t u r e

The CNAFC w i l l extend i t s a rea outs ide of Mercedes t o increase t h e number of SNs and c o l l e c t a l a r g e r quant i ty of f i s h . The number of Directors on t h e Board w i l l be increased from t h e present 9 so t h a t each municipal i ty i s represented on it. The CNAFC w i l l have t h r e e s t e e r i n g committees under t h e Board of Direc tors t o t ake ca re of operat ions i n each c o l l e c t i o n place.

A s f o r t h e managerlal s t r u c t u r e , it w i l l have four departments which w i l l be i n charge of boat opera t ions , marketing, f inance and business. These departments w i l l work i n c lose cooperation with t h e s t a f f i n each co l l ec t ion place, under t h e d i r e c t i o n of t h e general manager. (Appendix 2 )

Collect ion scheme

There is no f ixed time a t each place t o purchase f i s h . Therefore, fishermen-members o r non-members w i l l b r ing t h e i r f i s h t o t h e c o l l e c t i o n place a t any time. The de ta i l ed scheme is:

( i ) The c o l l e c t i o n boat w i l l drop i n a t each place once a day.

( i i ) Each place w i l l purchase f i s h from members o r non-member fishermen by a weighing system, according t o t h e cu r ren t

p r i c e i n Mercedes ( t ransmit ted by rad io ) under t h e d i r e c t i o n of t h e general manager of t h e CNAFC.

Payment i s on a cash b a s i s .

Each place w i l l supply gasoline, kerosene and o the r ma te r i a l s required f o r f i s h i n g only t o member-fishermen on a cash o r d a i l y c r e d i t bas i s .

Each place should s o r t f i s h by species and box it i n insu- l a t e d conta iners with i c e f o r loading on t h e main c o l l e c t i o n boat .

Pr ice determination

The d a i l y p r i c e i n Mercedes landing por t w i l l be sen t by r a d i o t o each place by t h e general manager. Cooperative p r o f i t s on f i s h s a l e s w i l l be accumulated and prorated a s dividends t o member-fishermen on a weekly o r a monthly b a s i s .

Marketing ~ l a n

The marketing of a programmed catch w i l l be geared t o meet t h e demands of l o c a l and Manila buyers. F i r s t l y , f i s h w i l l be t ranspor ted t o Mercedes main c o l l e c t i o n point from each place by boat , u t i l i z i n g insu la ted f i s h conta iners with i c e , and del ivered t o two o u t l e t s , l o c a l and Manila. The main marketing o f f i c e r i n Mercedes w i l l box t h e f i s h i n uni f ied p l a s t i c containers f o r l o c a l markets - Mercedes, Daet, Vinzon, Paracale, Labo and Panganiban; f i s h w i l l be boxed i n insula ted containers f o r Manila markets - wholesale markets, two supermarkets under CMSP and other publ ic markets connected with CMSP. The weighing system w i l l a l s o be applied t o both out- l e t s . Eighty percent of t h e t o t a l projected catch w i l l be expected t o go through t h e cooperat ive, out of which 40% w i l l go t o Manila markets while 32% and 8% w i l l be supplied t o l o c a l markets and member processors, r e s - pect ively. The f i s h f o r processors a r e not marketable species i n t h e l o c a l market o r Manila. (Appendix 3 )

Management

The programme w i l l be implemented with strong supervision by t h e general manager of t h e CNAFC. He w i l l g ive d a i l y i n s t r u c t i o n s a t each place f o r t h e purchase and supply of input mater ia ls . The management of t h e a c t i v i t i e s a t each of t h e co l l ec t ion p laces w i l l be pr imar i ly under t h e ju r i sd ic t ion of t h e marketing o f f i c e r who w i l l have four o r f i v e s t a f f working a t each place.

8. CONCLUSION

In s p i t e of t h e i r g rea t cont r ibut ion t o catch and employment, t h e small-scale fishermen have been l e f t a t t h e mercy of t h e p r i v a t e brokers f o r f i s h i n g and disposing of t h e i r ca tch , because of t h e i r r e l a t i v e l y small

ca t ches and t h e i r l ack of sys temat ic marketing, inadequate i n f r a s t r u c t u r e and poor means of t r a n s p o r t a t i o n f o r t h e f i s h . These r e s u l t e d i n most of ' the p r o f i t s being absorbed by t h e brokers no t t h e fishermen.

These d i s p a r i t i e s have hindered t h e smal l - sca le fishermen i n a t tempt ing t o r a i s e money f o r a common purpose and has discouraged t h e development of f i s h e r i e s . I t is not on ly f e a s i b l e bu t necessary t o e s t a - b l i s h t h i s coopera t ive f o r municipal fishermen. I f s t rong o rgan iza t ions l i k e f ishermen's coopera t ives a r e e s t a b l i s h e d , most of t h e problems r e l a t e d t o t h e f i s h e r i e s w i l l be solved o r p a r t i a l l y solved through t h e func t ions of t h e coopera t ives . Considering t h e problems b e s e t t i n g t h e development of t h i s coopera t ive , it w i l l be a long t ime before it becomes f u l l y ope ra t iona l .

A s we l l a s increased organiza t ion , it w i l l b e necessary t o s e t up primary f a c i l i t i e s and equipment t o develop coopera t ive marketing; a l s o , increased amounts of t r a d e money w i l l be loaned from Government agencies .

APPENDIX 1 PHILIPPINES

PROJECT AREA

APPENDIX 2

LOCATION OF COLLECTION SITES

APPENDIX 3 ORGANIZATIONAL AND MANAGERIAL CHARTER IN CNAFC

BOARD OF 1 st Place. STEERING COMMITTEE

MARKETING DEPARTM WT

Marketing Officer

- ---( 2nd Place. STEERING COMMITTEE

Marketing Officer

GENERAL MANAGER

Assistant Marketing

3rd Place. STEERING COMMITTEE

Operator

BUS1 NESS

Procurement

EPARTM ENT 1 I OPERATION I I DEPARTMENT I

kcoun tant

Cashier I

I Operation 1 Officer P Mm inistrativ

Officer

Captain P Engineer P

I st PLACE 1 Marketing

Officer I Officer

Ass; stant Marketing

Cashier n

Marketing Officer I

Procurement 0 ff icer

Assistant Marketing

Cashi e r n

I

3rd PLACE

Marketing Officer

Procurement Officer

Assistant Marketing

Cashier u