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News: D.A., SMC sign deal for quality corn and sustainable dairy industry - 01 Oct 2007
The Department of Agriculture (DA) yesterday inked a memorandum of understanding (MOU) with San Miguel Corp. (SMC) providing for a study on the viability of establishing one-stop processing centers for corn to ensure the high quality and continuous supply of this commodity.  

The Department of Agriculture (DA) yesterday inked a memorandum of understanding (MOU) with San Miguel Corp. (SMC) providing for a study on the viability of establishing one-stop processing centers for corn to ensure the high quality and continuous supply of this commodity.

Signatories to the MOU were Agriculture Secretary Arthur Yap and National Agribusiness Corporation (Nabcor) president Alan Javellana on behalf of the DA, and SMC president and chief operating officer Ramon Ang and San Miguel Purefoods president Francisco Alejo III, on behalf of the SMC.
This study aims to determine the viability for the DA, Nabcor, SMC and Purefoods to team up in building and operating Corn Post Harvest Processing and Trading Centers that aim to hone the production of quality feed and food grade corn.

The centers will be operated as one-stop venues for the provision of technical, institutional development and market-related infrastructure assistance for the continuous supply of quality corn.

Yap said, "These facilities will also serve as venues where farmers can obtain technical assistance on adopting good agricultural practices, as well as processing and marketing of quality products."
This proposed partnership among DA, NABCOR, SMC and SMPFC seeks to reduce corn drying and processing costs by half and cut postharvest losses from 15% to 5%, resulting to an increase in production of quality corn grains and higher incomes for corn farmers.
A second MOU will be signed between the DA and SMC to also study the feasibility of establishing a Carabao Dairy Farm with the aim of accelerating the growth of the local dairy industry.
Under the proposed initiative, the DA's Philippine Carabao Center and National Dairy Administration shall provide the technical assistance while SMC will supply animal feeds, operate the dairy farm and buy the raw milk.
Earlier, Nabcor reported that two postharvest processing and trading centers designed to ensure the continuous supply of quality corn and provide farmers a venue for marketing their grains are already operational in the provinces of South and North Cotabato.
Nabcor said it has already opened a similar center in Malungon, Sarangani and will open another center in Sergio Osmena Sr., Zamboanga Del Norte by October of this year.

This DA-attached office is currently operating, in partnership with LGUs, the PHPTCs in Kabacan, North Cotabato and in Banga, South Cotabato.

The funding strategy employed for the construction of these postharvest processing and trading centers distributes the total project cost between Nabcor, which absorbs 75% and, and its joint venture partners in specific areas, which shoulder the 25% balance.

Nabcor's program for the establishment of these centers in the country's corn-producing provinces is "intended to hone production of quality feed and food-grade corn through joint venture agreements with interested and qualified partners such as LGUs, cooperatives and industry representatives from the private sector in strategic priority areas all over the country." ###

 

Posted By: Department of Agriculture 
 
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