US Embassy Mindanao working group presentation march 26

Philippine Cold Chain Project (PCCP)

Experiences and Best Practices

Daniel J. Gudahl

Chief of Party

Philippine Cold Chain Project

Caraga Region, Mindanao

March 19, 2015

What is PCCP?

• The Philippine Cold Chain Project is a four-year agriculture development project funded by the United States Department of Agriculture (USDA) and implemented by Winrock International Institute of Agriculture Development (Winrock). PCCP covers all the five Provinces in the Caraga Region of northern Mindanao.

1. Increased Agricultural Productivity.

PCCP focuses on improving productivity of selected high value commodities such as high value vegetables, bananas, mangoes, livestock and fisheries.

2. Expand Trade of Agricultural Products.

PCCP is implementing interventions to ensure production of high quality products meeting international food safety guidelines with the end-view of enabling producers to be globally competitive.

Planning – at the farm, collection point, point of sale and end market levelsProduct – determination regarding which products are best for which production areasPrice – looking at profitability and efficiencies of production whenever possibleProduction – looking at new or improved practices in production to grow more product and processing to create more profit

9 Ps of PCCP

Post-harvest – using the best practices during and after harvest in order to assure product is reaching markets in the best preserved and most profitable condition possible

Phytosanitary Practices – assuring that products raised are handled in the best manner possible to assure passage and delivery of a clean and wholesome product and utilizing improved cold chain practices where possible

Promotion – using media, conferences, suppliers, national and international events etc. to promote, brand and expand markets for the region

Policies - working with local, provincial and national governments to create awareness of good policies that improve markets and bring attention to policies that need improvement or are causing problems with improving the market and

Mutually Beneficial Partnerships

One of the main lessons I have learned during my five years as Secretary-General is that broad partnerships are the key to solving broad challenges. When governments, the United Nations, businesses, philanthropies and civil society work hand-in-hand, we can achieve great things.

Ban Ki-moon (IFAD 2013 Governing Council meeting titled “Power of Partnerships)

• D A/BFAR• DTI Regional and Provincial- SSF• Municipalities and Municipal Agriculture officers- BUB-

260 Barangays• Provincial Governments• DSWD-4Ps• DOST• NMIS• TESDA• Department of Agrarian Reform• Philippine Port Authority and DBP

PCCP Partnerships:

The Project AreaCARAGA Region

• 6 Cities

• 5 Provinces

• Municipalities

• 260 barangays

Pilmico Subcontract Signing Event in Manila

5. SUBGRANT AMOUNT-PIG REPOPULATION

The total estimated cost of this subcontract is PHP 31,105,723. Winrock PCCP will provide PHP8,190,000.00 (equivalent to not more than US$188,000.00), and Pilmico will provide PHP 22,915,723.00 as match ($509,238)

55 Barangays this year.

Esperanza Farmer Field School Graduation

Summary per Commodity

Field Type of Commodity No. of beneficiaries

Loan Amount

Horticulture Bittergourd 8 Php 91,332.00

Bell pepper 2 Php 20,444.00

Mango 5 Php 584,750.00

Livestock Hogs 36 Php 3,190,295.00

Aquaculture Prawn 6 Php 395,638.15

Lobster 108 Php 4,023,499.20

Total 165 Php 8,305,958.35

Cold Chain Association of the Philippines

Global Cold Chain Alliance www.gcca.org

International Affiliation of Refrigerated Warehouses

World Food and Logistics Organization

Southeast Asian Fisheries Development Center

and Northern Mindanao School of Fisheries

Fingerling

Gatherers

SDS

Fingerling

Consolidators

SDN

Local Fingerling

Consolidators

PDI

Growers

PDIEffective Direct

Production Cost = P1,562/

kg*

Agents

PDI/SDN

Buyers in

Surigao City

Buyer/Exporters

Manila

Export Market

Local Market

Hotels & Resto

Manila

Feeds

Trash fish

Selling price = Maximum of

P350/pc

Depending on size

Selling price = Maximum of

P450/pc

Depending on size Selling price = Maximum of

P500/pc

Depending on size

Mostly Gathered by

Growers

Imputed Cost = P500/lobster

for 1 year culture period

Gets a commission of

about P100/kg. Shoulders cost of transport

Selling Price = P1,800 to P3,000/kg

depending on demand

Selling Price = P1,800 to P3,000/kg

depending on demand Selling Price = ?

Some of the buyers in Surigao are

buying stations of Manila Exporters

Selling Price = $55 to $90/kg

Source: alibaba.com

Selling Price = ?

Buys at 30 to 60 days term

FinanciersProvides the Capital for fingerlings

And gives 50% share of sales net of fingerling cost to

The grower

Inputs Production Distribution Markets

Transport

Providers

Selling price =

Maximum

of

P500/pc

Depending

on size

* Computed as cost of fingerling and feeds per lobster divided by average weight per lobster divided by expected

survival rate. (P500 + P500) / 0.8 survival rate / 0.8 kg market weight.

Fingerling

Consolidators

SDS

Selling price = Maximum of

P400/pc

Depending on size

Live Lobster Value Chain Map

1. Cost drives production. Agricultural credit must be readily available.

2. Many different government agencies are funding parts of production or marketing but there is no intra agency coordination.

3. Production needs to be increased at the same time as marketing opportunities are increased.

4. While some places are better than others, all municipal markets practice unsanitary standards, especially regarding meat and fish.

5. Producers need to know where they will sell their produce, how much it will cost and what their potential profit margin will be before starting to raise anything.

PCCP Observations:

Thank You!

Dan Gudahl2/F Rudy Tiu II Building, JC Aquino Ave.

Butuan City, Agusan del Norte, 8600

[email protected]

Cell: 0907 309 5393