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AQUINAS UNIVERSITY FOUNDATION
A Feasibility Study on
Milling Facilities on
Sugarcane Processing
and Muscovado
Production At Barangays Cepres & Maysua,
Polangui, Albay
LGU-PYD-AQFI-PO/SHG PARTNERSHIP
12/27/2010
under the AQFI-CONVENIO-AECID 07-CO1-034 PROGRAM ON “Strengthening the Productive Sectors in the Rural Areas and Improving Sexual and Reproductive Health in the Regions of Bicol (V) & Caraga (XIII).
BACKGROUND AND RATIONALE
Extreme poverty is a daily scene in the lives of millions of Filipinos. This remains
prevalent in rural areas because of few economic opportunities on agricultural-based
income sources. Lack of access to productive resources further aggravates the problem.
This unfavourable socio-economic environment leaves the poor marginalized. It affects
not only the ability of rural communities to meet their daily needs but their capacity to
respond to harsh environment.
The call to reduce poverty necessitates development interventions that address
the root causes of the problem of extreme poverty in communities. Enhancing the
capacity of the poor and providing economic opportunities are critical interventions
along this line. However, they have to be sustainable, responsive, demand-driven and
participatory as envisioned by the CONVENIO AECID 07-C01-034 FILIPINAS PROGRAM of
PAZ Y DESARROLLO (PYD) and AQUINAS UNIVERSITY FOUNDATION INC. (AQFI) on
“Strengthening the Productive Sectors in the Rural Areas and Improving Sexual and
Reproductive Health in the Regions of Bicol (V) & Caraga (XIII)”. This program has been
actively promoting participatory community development towards reducing poverty
nationwide.
Geared towards the abovementioned program’s objectives, the program board
identified specific productive sectors and specific rural areas to start with. Participatory
Resource Appraisals (PRA) was conducted in the identified rural areas to effect the
development possibilities in each area. The Participatory Resource Appraisal (PRA)
conducted in Barangays Cepres and Maysua from the Municipality of Polangui in the
Province of Albay on April 10 and 21, 2008 was participated by barangay officials and
farmers of the communities. Common highlights of the appraisals in the two barangays
included mostly agricultural land use classification; diversified and intercropped
agricultural land areas dominated by corn, coconut and sugarcane farming; farm
products as the major sources of income; food as biggest allocation in household
expenditures; and 100% of the barangay households live below the poverty threshold.
The development possibilities identified for intervention by the program included the
formation of cooperatives for common service facilities, cooperative services, marketing
and capability building; provide value-added to current produce particularly sugarcane;
development of other alternative sources of income especially for women with
continuing capability building, financing and marketing support; alternative transport
facilities; support for sustainable farm technologies and other farm production related
assistance; support for basic social services such as health care system improvement,
waste management system development, educational assistance, water system
development, continuation of road improvement and electrification.
Validating the results of the Participatory Resource Appraisal (PRA) in the
identified barangays, Aquinas University Foundation, Inc. (AQFI) conducted barangay
surveys producing the Barangay Profiles that provide a brief analysis of the socio-
economic and political situation of the barangays posing a picture of a farming upland
communities that are living below the poverty threshold as characterized by the
interlinked process/cycle of poor income and productivity due to poor health, low
education, poor technology, unemployment, and giving rise to higher poverty
incidence. Faced with these pressing problems, the greatest challenge recommended
based from the activities conducted is in building human capacities and in providing
opportunities for productive and viable livelihood activities while ensuring the sustainable
use and management of the area’s elemental resources.
Given this perspective, the focus of this study is directed and concentrated on
strengthening one of the major productive sectors of the two identified barangays, that
is, the Sugarcane. Basically, this entails the development and improvement of the
present cultural, social and economic activities of the area that could provide them with
the maximum value-added opportunities vis-a-vis their current potentials and resources.
The sugarcane production of Barangay Cepres is characterized by sugarcane
plantations dominating 46% of the total agricultural land use and sugarcane produce
obtaining 63% of the total production of major crops. Whilst 20% of the total agricultural
land use (2nd to corn) and 30% of the total production of major crops (2nd to coconuts)
depicts the sugarcane production of Barangay Maysua. The sugarcane farming system
adapted by Polangui communities that could be worked on as their competitive
advantage over other sugarcane producers in the Philippines includes 100% organic
farming system and year-round production.
Sugarcane in both barangays are primarily processed into “panocha” or
“sangkaka” products (molded raw sugar). This product is being promoted by the local
government unit as the One-town One-product (OTOP) of Polangui, Albay based on the
considerable number of the household earning a living through “sangkaka” production
producing more than 1600 tons of “sangkaka” per year with their current capacity1. The
process involves the extraction of sugarcane juice at small-scale sugarcane mills paying
15 - 25% of their total “panocha” output to privately owned millers.
Such common practice of this specific productive sector in these communities
aggravate poverty, being primarily associated with lack of income opportunities and
poor agricultural productivity experienced by farmers due to such factors as low price for
agricultural products, limited markets or low demand for “sangkaka” products due to
lack of access to market information and awareness of market requirements, financial
indebtedness to available credit institutions, farm land not owned, lack of capital to
implement proper farm maintenance and good quality inputs, lack of education, lack of
technology and facilities on proper land preparation technique and method for good
agronomic practices and high transaction costs as a result of very low productivity and
diseconomies of scale. Thus, development possibilities that could be intervened towards
this end will be providing value-added to current produce particularly sugarcane
through technology support for product development, post harvest facilities for
sugarcane milling and processing, product promotion and marketing and financing
support.
Hence, this prompted the proponents of this project to propose the establishment
of milling facilities on sugarcane processing and muscovado production in the
Barangays of Cepres and Maysua, Polangui, Albay as the potential and viable solution in
addressing the problem on extreme poverty in these communities, that is, if proven
feasible through the conduct of this study.
This feasibility study shall likewise take into consideration the underlying principle
and purpose as basis and justifications in implementing such project given the above
communities’ situational analyses, putting emphasis on the capability of the target
product in working towards the program’s and the project’s objectives and the key
players of the industry which is affected by or affecting the project.
1 SDCAsia. July 2009. Value Chain Analysis: Muscovado Sugar, Bicol Region.
From the various community projects identified, the muscovado sugar production
showed great potentials. It has been providing the key players in the industry with high
economic returns and increasing local and international market demand.
Generally, muscovado sugar production poses high income opportunities
because of its high value product image/market positioning, high demand and high end
target markets, thereby alleviating the standard living of sugarcane producers and
“sangkaka” processors. Moreso, availability of a common service facility for muscovado
sugar production shall effect the consolidation of production/cluster operations to
overcome very low productivity and diseconomies of scale; and shall lead to the
accessibility of the producers to market information and awareness of market
requirements by selling directly to sugar end-users (household & industrial). Membership in
community organizations managing the project operations shall imply share of
earnings/profitability of the project in the long run providing the members with additional
source of income, thereby eliminating the need for financial assistance. With the
additional source of income, capitalization on farm lands, proper farm maintenance and
good quality inputs, and household basic needs satisfaction will be realizable. Most
importantly, the project shall implement good manufacturing practices obliging the
farmers to participate in technology transfers and follow standard procedures on proper
land preparation technique/method and good agronomic practices to attain maximum
productivity beneficial to both the farmers and the project.
On one hand, the key players that will be positively affected by the project shall
include the sugarcane backyard growers, “left out” Pensumil sugarcane farmers,
“sangkaka” backyard microprocessors, commodity goods retailers and end users
(household and industrial). Sugarcane backyard growers shall benefit on the project’s
advocacy on good agronomic practices and its productivity implications. Pensumil
sugarcane farmers might be given the option to add value on their sugarcanes not
accommodated by Pensumil if there will be an excess in processing capacity of the
proposed plant. “Sangkaka” backyard microprocessors shall be provided with value-
added opportunities and higher income potentials from processing their sugarcanes into
muscovado. Commodity goods retailer will be given that same income potential on
sugar but with a healthy option. End users will definitely be provided of a healthy option
satisfying their needs for sweeteners and for value for their money. On the other hand,
the key players that may probably affect the project negatively are the Polangui’s
village level common service milling facility, nearby muscovado processing plants, and
village traders and consolidators. This project will be the direct competitor of village level
common service milling facilities and small-scale muscovado processing plants in the
nearby communities. As such, it will inevitably pose several negative implications on the
project, thereby alienating the possibility of complementing the activities of these milling
and processing plants with that of the project. These milling facilities and muscovado
processing plants situated in the same municipality as the project does not observe good
manufacturing practices effecting nonetheless inferior quality of products.
Complementing and making use of the current capabilities of these milling and
processing plants may eventually affect adversely the marketing and manufacturing
strategies of this project specifically on the product image and superior quality of the
product. Nevertheless, the possible existence of village traders and consolidators may
push high market prices and eventually take advantage profusely of the high income
potential of the product.
In addressing these product image, quality and market price positioning issues,
the project will be geared towards having its own niche in the market. That is, the
muscovado sugar that will be processed and marketed shall gain its competitive
advantage on its export quality compliance and unusual market positioning strategies.
The project shall obtain good manufacturing and agronomic practices to be
able to effect a product that is in compliant with the existing Bureau of Food and Drugs
(BFAD) standards and export quality standards. This commitment shall be the project’s
social responsibility of providing the market with value for their money through good
quality and real healthy product.
Moreover, the muscovado sugar that will be processed and marketed from this
project will be positioned in the market as substitution to relatively high priced brown
sugar in the market, which majority of Philippine sugar consumers presently use based on
the Philippine Sugar Withdrawals2 from 2009-2010 of 162,296MT Raw Sugar and 125,338MT
Refined Sugar. It will not initially compete with the prevailing high-priced muscovado
sugars available in the market but rather position itself in the market as “THE ONLY
HEALTHY SUGAR FOR THE LESS FORTUNATE”. The project shall generally aim to insinuate
that muscovado sugar is not only for the rich/fortunate ones but for the poor/less
fortunate as well. Everybody, irregardless of its social classifications, deserves to reap the
numerous health benefits of the Muscovado Sugar.
2 SRA CY2009-2010 Sugar Supply and Demand Situation. Highlights of SRA Sugar Production Bulletin.
www.sra.gov.ph
INDUSTRY PROFILE
To complement with the rationale of this study, four interlinked industries was
evaluated in terms of its historical background, its current trends and developments and
its pertinent technologies which have been instituted. These four interlinked industries
include the sugarcane industry, the “sangkaka” industry, the “muscovado” sugar industry
and the “brown” sugar industry.
The Sugarcane Industry
An assessment of the sugarcane industry shall bring forth an evaluation of raw
materials (sugarcane) concerns of this project from its availability to its yield
characteristics.
Area planted to sugarcane worldwide approximately covers 13M ha from
tropical and subtropical countries 3 . In the Philippines, according to the Bureau of
Agricultural Statistics 4 , the top 3 producing provinces (production/yield) are Negros
Occidental, Bukidnon, and Negros Oriental contributing to 45.2%, 11.5% and 11.5% to
total Philippine production, respectively, in the year 2007. The Bicol region contributed
only 1.1% to the total Philippine production. Among the sugarcane producing provinces
in the Philippines, Camarines Sur ranked 14th (185, 747 MT) and Albay 17th. Within the
Region, the province of Camarines Sur is the major producer contributing 75% of the total
production. The project’s sugarcane production area of concern will be the 237
hectares of Barangay Cepres land area devoted to agriculture and 276 hectares of
Barangay Maysua land area devoted to agriculture, both involved in diversified and
intercropping farming practices. Agricultural land use devoted to sugarcane production
constitutes 121 hectares at Barangay Cepres and 56 hectares at Barangay Maysua, to
date5.
As per data from the Agricultural Statistics (DA Region V), production from Albay,
Catanduanes, and Sorsogon are processed into sangkaka, while sugarcane harvested
from Camarines Sur are milled/processed into white sugar. From the total area planted to
sugarcane, 84.34% is devoted to sugar mills production and only 15.66% (approximately
1040 hectares) are for sangkaka processing. Out of the total sugarcane production of
the Region in 2008, approximately 79.77% is processed into white sugar via centrifugal
production of PENSUMIL (a commercial sugar milling company) and only 20.23% is
processed into sangkaka utilizing traditional and semi mechanized milling processes.
PENSUMIL sugarcane farmers usually supply sugarcane sticks to the plant during milling
season. Production is done employing standard practices by the plant including
mechanized harvesting using a tractor. Farmers that were “left out” or not able to send
to the milling plant prefer to leave their sugarcanes to mature since these are not
anymore fit for sugar production.
The average yield of sugarcane per hectare decreased by 13% from 2003 to
2008, however, there was a notable increase of 25% from 2007 to 2008. Compared to the
national average yield in 2007 of 58.06 ton canes/hectare, Bicol’s average was 26%
3 PDAPI. 2007. Prospects of the Muscovado Sugar Industry in the Philippines - World Sugar Production.
4 SDCAsia. July 2009. Value Chain Analysis: Muscovado Sugar, Bicol Region.
5 AQFI. December 2009. PRA & Barangay Profile.
lower than that of the national figure, 42.96 ton canes/hectare. The province of Albay
has the highest yield per hectare and is at par with the national average. However,
based on the validation of the PRA done in the two upland barangays, their average
yield is only 13.6 ton canes/hectare only based on the “Didong 226” variety of
sugarcane. In the Philippines, the highest yield recorded is in the province of Sultan
Kudarat (96.01 ton/hectare) followed by Laguna and Cebu at 78.6 ton/hectare.
The “Sangkaka” Industry
According to the growers in Polangui, production of sangkaka has been in
existence even before WW2. The product has been used mostly for home consumption
and in the preparation of native delicacies. Common Practice of sugarcane backyard
growers is the process of their own “sangkaka” either in their household or in a village
common service facility. They employ natural production methods without addition of
any form of fertilizers and does harvesting manually.
Based on the interviews with micro processors in Polangui, they are able to
produce as much as 3 to 5 tons of sangkaka per cropping season. These are sold to
nearby public markets. On the average, Card members can collectively produce
approximately 1600 tons (28kg per day x 8days per month x 12 months x 600 members) of
“sangkaka” per year with their current capacity and with a potential to increase by 50%
with the introduction of productivity and efficiency improvement. Based on the interview
with PDCI, they have a total area of 543 hectares planted to organic sugarcane which
can produce approximately 27000 tons of “muscovado” per cropping. While Israel MP
Cooperative in Pili has projected 400 – 500 hectares of sugarcane production to be
devoted to “muscovado” processing which translates to an annual production of 52.8MT
of “muscovado” annually.6
The industry consists of the “sangkaka” backyard microprocessors mostly
belonging to the 628 CARD (financing institution) members engaged in “sangkaka”
processing in the Municipality of Polangui, Albay that employ traditional processing
technology utilizing manual extraction of sugarcane juice powered by a carabao and
utilizes open pan cooking (2 vats) fired by bagasse. The sugarcane is grown in their
backyard such that the grower is also the processor of his/her own produce. There are
also the village level common service facilities operating a mechanized extraction and
common processing area in the barangays where the growers can bring their harvested
sugarcane sticks to be processed and pays via product sharing.
Village Traders and consolidators for “sangkaka” plays a major role in bringing the
produce from the production area to the public market wholesalers. Every week the
trader travels via tricycle to Naga City and Legaspi City selling at most 10 sacks or 500
pcs of Sangkaka.
The “Muscovado” Sugar Industry
Muscovado Production has always been an integral part of the Philippine sugar-
agro industry. So widespread and dispersed are the production locales in the
6 SDCAsia. July 2009. Value Chain Analysis: Muscovado Sugar, Bicol Region.
countryside, such that muscovado or equivalent local forms, teemed in every market
outlets during, or even after production peaks usually from December to May.
Dating back from Spanish times, this backyard industry has survived years of sugar
industry turmoil. Positively, the industry requires relatively low capital to operate and
maintain. It promotes closer interaction within the family as it is a household centered
and is rural-based. It uses indigenous materials for inputs. It presupposes instant cash for
the produces as the muscovado crop could be readily disposed of upon manufacture in
direct contrast to occasional delay in sugar quedan liquidation for cane planters with
canes delivered to the mills. These, among others have contributed to the industry
survival.
Muscovado has been identified with various industry users locally, predominantly
confectioneries. Among its major uses are for making “bucayo” (sweetened grate
coconut), peanut brittle with sesame seeds, sweetened babana chips, sweetened pili
nut candies, bar breadfruit candies and coco honey. As coffee sweetener, powder
muscovado has penetrated first class diners and posh hotels and is preferred by some
health conscious groups. The export market, sone option the industry must strongly
consider, promises vast potential, granting that local producers would meet export
quality specifications and required volumes.
From juice extraction using carabao-driven wooden mills, to employment of
motorized or engine driven cast-iron three-roller mills, the processing aspect likewise has
transformed by leaps and bounds from the conventional to the semi-
mechanized/upgraded operations.
The product forms of Muscovado in Bicol Region consist of the muscovado sugar
crystals and the solidified form commonly known as sangkaka. In the Philippines, there
are around 3000 farmers dependent on the muscovado industry. Antique has the most
number of muscovado farmers, followed by Negros Occidental, Tarlac, Pangasinan and
Sultan Kudarat. In Bicol region, the sugarcane growers are concentrated in the area of
Camarines Sur near the Sugar Milling of PENSUMIL and some backyard growers
processing sangkaka in Albay and Camarines Norte. There are two dominant value
chains in Bicol namely a.) the organic muscovado channel with Pecuaria and UMFI as
anchors; and b.) the local market/public market chain which consist of backyard/micro
growers and processors and village traders. Sugarcane planters contracted by Pensumil
are now attempting to produce muscovado from sugarcanes that were “left out” by
Pensumil during the harvest.
There are 2 types of muscovado milling that are currently operating in the Bicol
Region to date. The difference basically lies on the type of extraction equipment utilized:
the manual carabao drawn and the motorized extraction equipment with the number of
open pans for boiling. Also, there are two muscovado processing plants currently
operating in the Bicol Region - The Banaba Arc Multipurpose Cooperative in Polangui,
Albay and The Israel MP Cooperative in Pili Camarines Sur. They purchase the sugarcane
sticks from its members and cooks/processes muscovado utilizing a mechanized
extractor and open pan cooking. These processing plants are dependent on their
marketing arms in selling their produce. The Banaba Arc Multipurpose Cooperative
entrust entirely to CARD (financing institution) the marketing activities of their products
reaching mall supermarkets and native delicacies producers.
7According to SRA, common to muscovado processing plants in the Philippines is
described by the following muscovado technology.
1. Plant housing. Under GI sheets, nipa or cogon leaves roofing, and a floor area of
at least 200sqm, the plant house is seldom provided with external walling. Usually
a bodega lies adjunct to the plant-house, or in the absence, the crops are stored
in the owner’s house.
2. Machinery Equipment
- Juice extractor. These are usually small two to three-roller cast-iron mills
(12”x24”) provided with accessories as cogs, gears and belts and is driven
(rotated) by a motorized or diesel engines 6-12hp. A juice hose or PVC pipe
usually leads the milled juice from the base of the mill to the cooking vats. Or
the milled juice is temporary stored in a tanks and then manually transferred
to the vats using pails.
- Cooking Vats. Locally called “kawas” are made of mild steel measuring 30”
deep and about 60” top diameter. For maximum juice output and to
preventing overflow while cooking, the kawas are provided with extenders
(welded of cemented atop the rim). The vats are arranged in series by three’s
or four’s in larger muscovado mills.
- Curing tubs. Usually made of hardwood, the rectangular wooden tub serves
for crystallizing, solidifying, the concentrated syrup through vigorous mixing
using spades and paddles.
3. Furnace
Directly below the cooking vats is a furnace usually with cement or brick lining.
Furnace are designed (usually with iron grate) for maximum heat output using
bagasse (a milling by-product) as fuel. A smokestack outside the plant house
serves as an exit for combustion products. As cooking is a critical phase in the
process, the furnace design should provide heat control via timely fuel loading
and withdrawal as the need arises.
4. Miscellaneous/Consumable
Other materials for muscovado hardening, curing and bagging such as: lime,
molds and coconut shells, jute bags/sacks.
Of the operational muscovado mills in the country today about 95% still employ
the traditional or conventional method of producing muscovado. The technology, by
present standard is now outmoded and need be upgraded to produce better quality
crop.
Basically, the methods consists of:
1. Cane harvesting. A cartload (1tonne cane) or a truckload (5 tonnes) of freshly
cut canes is delivered to the mill for immediate crushing. Or this may be
stockpiled for some hours while waiting for the cane owners regular turn to mill, in
case he is co-milling with other cane growers.
2. Cane crushing. For squeezing the juice out of the canes, majority of the mills,
about 96%, employs mechanized crushing using cast-iron three-roller mills driven
by a motorized or diesel engines, as the case maybe. Some producers in Ilocos,
however, still use their carabao to drive the mills at rather slow pace. For
mechanized milling, about two hours of crushing could yield enough juice for a
single cooking batch, usually three kawas (cast iron vats).
7 SRA CY2009-2010 Sugar Supply and Demand Situation. Highlights of SRA Sugar Production Bulletin.
www.sra.gov.ph
3. Juice transfer. To transfer milled juice directly to the cooking vats a hose or a PVC
pipe traverses from the mill outlet to the vats. For temporary juice storage, a tank
serves the purpose and then the juice is manually transferred to the cooking vats.
4. Juice cooking. The furnace is slowly fired to heat the juice in all the kawas. Cane
juice boils at 100 – 105 degrees centigrade. Cooking time is usually three to four
hours. In a series of vats, all the kawas are initially filled to the rim. Evaporation
ensues leaving only about 30% volume of concentrated juice. The thickened
juice is gradually “forwarder” (manually scooped to the succeeding vats) from
the last to the first kawa where the final cooking takes place. Scum removal
during ebullience (juice boiling) is done through skimming.
5. Juice Hardening. Others resort to slaked lime addition (only minimal amount) for
purposes of “hardening” the concentrated juice (technically termed as
massecuite) further. The practice, at the same time favors impurity coagulation,
which afterwards could be removed by scooping. It has been noted to enhance
cooking rate, at the same time reduce the muscovado color. The “maestro” or
master cook normally decides when to drop the massecuite to the curing tubs.
6. Curing. Depending on the muscovado type or form desired – lump, powder, or
simply inuyat or taga-pulot, curing of muscovado entails varied operations. For
powder form, the massecuite is immediately transferred to the tubs, and vigorous
stirring using spades/paddles ensues. Air cooling renders this operation easier. The
lumps are powdered to the desired consistency and texture. Color changes from
brown to yellow, which is the more desired color for marketability. For molded
product type, the massecuite is just transferred to the mold, usually coco shells or
wood while for the liquid form (inuyat and taga-pulot), the massecuite is just
transferred to a storage tank and sealed.
7. Storage. Sacks or bags are used for powder muscovado storage. Others used
wooden crate where the molded muscovado are piled. For liquid output,
cylindrical containers are used and then sealed or covered.
8. Marketing. Some producers have regular market outlets. Others output are
directly picked-up on site after manufacture. Still, others store their crop for better
sale period, usually during peak demands in November and holiday seasons. Few
have Manila sale contract.
For the conventional or traditional muscovado technology, the following drawbacks
have been associated with: (Muscovado Production and Technology by Sugar
Regulatory Administration)
1. Low Juice Extraction. As surveyed, the juice extraction employing the outmoded
mills of fifty years or more, is anywhere between 45-50% on cane. Using improved
mills, the figure could be increased to 60%. When cane is not fully matured, it will
not solidify.
Considering the bagasse to be about 30% of cane weight, a considerable
amount, about 20% of the extracted juice in cane remains unrecovered and thus
burned with the bagasse. Juice spillage during crushing comopounds the
problem of low juice recovery.
2. High Juice Impurity
The juice is not screened off from dirt and other impurities, as soil, bagacillo, etc.
The impurities are cooked with the juice resulting to a product crop of high color
and high sediment.
3. Juice Transfer Losses
The practice of manual juice scooping from vat to vat accounts for juice losses
which could have been minimized under semi-mechanized scheme (piping
system).
4. Cooking Losses
Scum removal during cooking likewise reduces juice volume. With proper juice
settling or clarification method, scooping is no longer necessary as juice impurities
are outrightly screened off prior to cooking.
5. Inversion Losses
The traditional method leaves sanitation practices much to be desired. The mills
are seldom sanitized, thus providing a harbor for microorganisms enhancing
sucrose inversion. Inversion, heat or organism-catalyzed, is the conversion of
sucrose to invert sugar. This minimizes yield and renders cooking more difficult.
6. Low Product Yield
Contributed by all the above drawbacks, the net effect of minimal muscovado
yield, 10% on cane is attainable. That is for every one tonne cane, the producer
gets about 100kilos of muscovado utmost.
7. Poor Product Quality
Because of antiquated technology, the output crop fares below local (if any),
much more below export standards. High sediment, high microbial count, high
moisture, high color and uneven texture characterize the present produce. While
presently still, product quality is seldom eyed by the local market, it is the primary
consideration in the export markets.
These technology drawbacks will be carefully addressed by this project so as to
produce high quality muscovado and maximize the project’s market, financial,
economic and technical competencies.
The Brown Sugar Industry
The brown sugar being referred to in this study are the commonly known
“segunda” sugar, “99” sugar, and sometimes as washed sugar available in the Philippine
market. This brown sugar can be processed further to produce refine sugar or packed as
is for local and export markets.
Raw sugar is usually processed in sugar refinery plants. After harvesting of
sugarcane, the canes are crushed in a series of large roller mills. The juice extracted are
cleaned with slaked lime which settles out a lot of the dirt so that it can be sent back to
the fields as fertilizer. Once this is done, the juice is thickened up into a syrup by boiling off
the water using steam in a process called evaporation. The syrup is placed into a very
large pan for boiling, the last stage. In the pan even more water is boiled off until
conditions are right for sugar crystals to grow. In the factory the workers usually have to
throw in some sugar dust to initiate crystal formation. Once the crystals have grown the
resulting mixture of crystals and mother liquor is spun in centrifuges to separate the two,
rather like washing is spin dried. The crystals are then given a final dry with hot air before
being stored.8
The resulting sugar in the above mentioned procedures are being sold as raw
sugar or further processed to partially refined sugar (segunda) or fully refined sugar (white
sugar). Full refined sugar is the result of sulphur dioxide being introduced to the cane
juice before evaporation. It effectively bleaches the mixture. In the production of refined
white sugar, which is the most common product in the Western world9, the raw sugar
syrup is mixed with a heavy syrup and run through a centrifuge again to take away the
8 www.foodrecap.net
9 www.greenlivingtips.com
outer coating of the raw sugar crystals. Phosphoric acid and calcium hydroxide are then
added to the juice which then combine and absorb or trap impurities. Alternatively,
carbon dioxide is used to achieve the same effect. The resulting syrup is then filtered
through a bed of activated carbon to remove molasses and then crystallized a number
of times under vacuum. It is then dried to produce white refined sugar like we buy in the
store. Sometimes manufacturers add back the molasses (by product of sugar
production) to white sugar and then dried again to produce partially refined sugar
(segunda) or the brown sugar being referred to in this project.
THE PROJECT
“The demand for organic products is rapidly increasing locally as consumers are
buying organic products for its health benefits and in support of environmentally-sound
farming”, according to the Department of Agriculture.
Given this motivation, the proponents of this project directed their program
objectives and activities in the development and improvement of the present cultural,
social and economic activities of the communities that could provide them with the
maximum value-added opportunities, thereby alleviating the standard of living of the
communities. Being in the sugarcane industry, muscovado sugar production was
identified to provide the maximum advantage/growth potential to farmers in the two
barangays considering that their current sangkaka production income generating
activities could potentially be further developed and upgraded to high value
muscovado production to serve its purpose of uplifting the way of life of communities in
such rural areas.
The project will be focused on “The Establishment of Milling Facilities on
Sugarcane Processing and Muscovado Production”.
As such, the economic activities of the project will be concentrated on two
operational aspects – as sugarcane processing service facility and as muscovado sugar
manufacturer/distributor. Although sugar plants are commonly associated with capital
intensive projects, this particular project will initially aimed at small scale capacity project
to take into consideration its capital requirement versus the proponents and beneficiaries
financing capacities. Thus, the proposed plant shall initially process one tonne of fresh
sugarcane tubers per day. Based on the industry’s muscovado sugar yield per tonne of
fresh sugarcane tubers from 8 – 12% recovery rates, this project will justifiably obtain the
maximum recovery rate of 12% under strict adherence to good agronomics practices
and good manufacturing practices in sugarcane processing. Therefore, the proposed
plant output capacity in terms of muscovado sugar would be 120 kgs of muscovado
sugar per day (10 working hours).
As a sugarcane processing service facility, the target beneficiaries of this project
will be given 50% of the project’s input capacity to process their sugarcanes into
muscovado sugar paying 25% of the total yield of their inputs as payment for processing.
This operational aspect will be geared on providing the beneficiaries the technological
assistance they need to be able to earn more from their sugarcane processing activities.
Since most of the beneficiaries are both sugarcane growers and “sangkaka” processors,
the service facility aspect of the project shall provide them with high income potential
not comparable to their current income (75% share from total yield) from making use of
privately owned milling facilities and home-based processing of “sangkaka”. They are
currently producing 13.6 tons of sugarcane per hectare yielding only approximately 500
kgs of “sangkaka” (200 pairs x 2.5kilos per pair) equivalent to approximately 3.68%
recovery rate. Under the same input of 13.6 tons of sugarcane per hectare, through this
project, beneficiaries could get as much as 12% recovery rates or approximately 1,632
kgs of muscovado sugar from their sugarcanes based on muscovado sugar production
technology being proposed. The marketing strategies of the project shall make the
product easy to sell, giving the beneficiaries the options to sell their shares directly to their
target markets or to the plant, who shall have the capability to establish direct end-
users/buyers selling relationships. With the higher pricing potentials of muscovado sugar
as compared to “sangkaka”, poverty issues in rural communities specifically of the
beneficiaries can be eradicated evidently and unquestionably.
As muscovado sugar manufacturer/distributor, 50% of the project’s capacity will
be allocated for the project’s purchased sugarcanes to be process into muscovado
sugar and directly distribute at target markets. This operational aspect will be geared on
sustaining the operations of the project until such time that sustainability becomes
profitability not only for the project but to the beneficiaries as well. Nevertheless, the
substantial profit gains from this aspect shall justly cover up for the cost deficits from the
other aspect of the operations.
To achieve these objectives of the project, vital major project components are
identified to ensure the project’s implementation and success such as sugarcane
production/farming techniques, site development, manpower recruitment, processing
technology, machinery procurement and installation, systems and procedure
development, and market positioning.
Sugarcane production/farming techniques shall include continuity of the
beneficiaries competitive advantage of sugarcane farming system of 100% organic
farming system and year-round production; introduction of good variety of sugarcanes;
and skills training on harvesting techniques and good agronomics practices.
Site development shall include the construction requirements of the plant site
such as the power source, water source, proper waste disposal development, areas
available for expansion, public road accessibility and actual plant building construction
requirements.
Manpower recruitment will be derived from the beneficiaries in order to obtain
100% commitment on the project. This may be decided upon by the project
management board to be assisted by beneficiaries.
Processing technology shall include skills training on good manufacturing
practices and on the specific processing technology through technology transfer
activities.
Machinery procurement and installation shall include the selection of the most
cost effective processing machines available in the market and selection of a
dependable processing machine supplier that could provide cost effective processing
machines, technology transfer and good post sale services.
Systems and procedure development shall consists of skills training on building
management capabilities in every aspect of the project and establishing internal systems
and procedures with its underlying requirement for standard operating procedures to
systematize the operations.
Most importantly, the market positioning will be supported upon by market
awareness programs, market segmentation strategies and direct marketing operations.
THE PROJECT AREA10
Barangay Cepres, Municipality of Polangui, Province of Albay
GEOGRAPHICAL
Location / Topography Upland rural barangay (generally rolling to hilly with
slight gentle and moderately steep slopes) about
7.8 km from the town proper and can be reached
by almost any kind of land transport being
strategically located along the main road network.
Climate Similar to other parts of the municipality
characterized by wet and dry seasons.
LAND
Land Area 263.35 hectares (about 1.8% of the total land area
of Polangui).
Land Use 237.12 hectares (90%) mainly planted to coconut,
sugarcane and corn. 12.88 hectares (5%) built-up
area utilized for residential and basic social &
economic facilities. Remaining 5% of the land area
are the roads/trail, river/creek and forest.
Agricultural land make up of 24% Coconut, 46%
Sugarcane, 13% Corn, 12% Banana, 3% Vegetables,
2% Pili, 0% Rootcrops.
Land Classification Its soil type is classified as Macolod-Pili complex.
MACRO-ECONOMIC
Labor & Employment Majority or 63% of the households obtain their
income primarily from farming through sales of
produce such as coconuts and copra (coconut),
panocha or kalamay (sugarcane), banana,
vegetables and rootcrops.
Farm Labor 17% in land preparation, maintenance,
and harvest of produce with daily wage of 100 – 200
pesos. The rest are employment (7%), in public and
private institutions (5%), operating sari-sari store and
other small business such as buy & sell (2%),
dressmaking (2%), driving (2%), working as cashier
(2%), and community service (2%).
Family Income & Expenditure The estimated average total monthly income of the
household is P6,700.00 including the contribution of
the wife and the children in case and in monetized
labor.
The months when income inadequacy is most felt
by the families are July, August and September.
These are the months when budget including
savings, if any, of the family is almost spend. The
rainy weather prevailing during these months affects
10
Barangay Profile, Brgy. Cepres, Municipality of Polangui, Province of Albay. Aquinas University
Foundation, Inc. December 2009
the efficiency of farm work, level of production and
quality of produce.
Average Household Expenditures are 27% food, 15%
occasions, 12% farming input, 10% education, 9%
non-food consumables, 5% transportation, 5%
clothing, 4% health, 3% tax, 3% cooking fuel, 3%
lighting, 2% recreation and 2% repairs &
maintenance.
DEMOGRAPHICS
Population Total Population of 1,575 (2008 barangay survey)
Household Statisctics Gender 46% female and 54% male.
AQFI June 2009 household survey covering 48
families, shows that majority of the family members
fall within the ages 1-24 (55.36%) and ages 25-44
(20.08%).
Total of 372 households with an estimated average
family size of 4.13 mainly composed of husband,
wife and their children.
It is common that a household have other members
such as grandparents, in-laws, nephew/niece,
goddaughter/son, uncles or cousins. These other
members of the extended family, more often than
not, become additional dependents of the primary
family.
Housing Majority or 94% of the families own their houses. The
rest are renting (2%), occupying with permission from
owner (2%), or squatting (2%). Majority of the houses
have floor area of 80 – 20 square meters and less.
28% of the households owned the homelot. 66% with
permission from owner and 4% are renting and 2%
are squatting. Homelot size ranges from 51 – 300sqm
(50%), 50 sqm and less (36%), 500 sqm and above
(10%), and 301 – 500 sqm (5%).
AGRICULTURE / COMMERCE &
INDUSTRY
Crops & Livestock Barangay Cepres is basically a coconut area. 24%
of the agricultural land is devoted to pure coconut
stands while the remaining portion is also coconut
land but intercropped with corn, sugarcane,
banana, rootcrops, vegetables and pili trees.
Most families raise livestocks and poultry such as
swine, goat, chicken, and ducks to augment
income and to prepare for special occations. Some
families own a carabao or a cow which is used
primarily as working animals and service for hauling
farm produce.
Production Area 54% of the families are tenants and only 8% are
owner-cultivators who have full control over the
resource and the produce.
Technology There is a number of small-scale sugarcane milling
facilities within the barangay, all of which are
privately owned and have the same technology
level as in the other barangays.
Production Volume 2002 – 927.11mt (63%) Sugarcane, 46.49mt (3%)
Corn, 7.87mt (0%) Rootcrops, 75.71mt (5%) Banana,
42.03mt (3%) Vegetables, 68.54mt (5%) Copra and
298mt (20%) Coconut.
Productivity Monocropping and slash-and-burn/kaingin are the
prevailing farm practices by families in the
community. Only 13% of the farming households are
adopting multi-cropping.
Majority of the families are using iorganic fertilizer,
pesticide and herbicide/weedicide/fungicide in
their farms. The use of organic farm inputs is not yet
acceptable in the community as indicated by the
very low rate of utilization.
Market Sold to traders in the barangay and in the town
proper. 61% of the household sell their produce to
local buyers/wholesalers, 21% to consumers in the
town proper, and the rest to residents of the
barangay.
Kalamay are sold in the town proper and in the
other towns of Albay province during market days
and fiestas.
INFRASTRUCTURE
ECONOMIC
Roads & Bridges The road network is generally paved and in good
condition except for an estimated 360 meters
pathway which is of earth surface.
SOCIAL
Service Facilities Elementary School, Barangay Pavilion, Barangay
Chapel, Barangay Hall, Barangay Health Center,
Barangay Outpost, Waiting Shed, Cemented
Basketball Court, Volleyball court on earth surface,
local water system and electricity.
Communication and leisure facilities include cell
phones, local radio and television.
10 sari-sari stores also serve as neighborhood centers
where people come together and talk about
matters of interest and update themselves of current
events in and outside the community.
Education Majority of 57% of heads of households reached
elementary level of education, 30% secondary, 5%
did not attend school and only 1% attended post
graduate studies. There were more female heads
having elementary education level while there is
almost the same percentage of female and male
having secondary education. Those who did not
have any formal education were all male while the
one with post graduate education is a female.
Health Health services are accessed from the Barangay
Health Station located in Barangay Pintor about
2km from the centro of Barangay Cepres. The BHS
has the basic health equipment and supplies.
Water/Sanitation 73% of the household obtain drinking water from
protected well, 25% from spring, and 2% from
stream. A common piped water system connected
to the main water system in the town proper was
installed along the main road where households
within the vicinity gather or fetch drinking water.
There are no functional pipe connections yet to
individual households.
Power/Energy/Communication 62% of the households have access to electricity
which serves as the source of energy for household
lighting and operating available household
appliances. 38% of the household still use kerosene
lamp as primary lighting source.
85% of the household are using firewood as fuel for
cooking while 13% and 2% are using charcoal and
liquefied petroleum gas or LPG, respectively.
Administrative Infrastructure The main governing body of the barangay is the
Barangay Council composed of barangay officials
with its committees.
There are 14 appointed Barangay Tanod, headed
by the Chief Tanod, and 6 Lupon ng
Tagapamayapa who are in the frontline of
delivering the protective services to ensure the
safety of the residents and maintain peace and
order in the community.
Existing community-based organizations (TSPI, Social
Action, ASA, CARD, UPCP, CFCA, BHW, Guardian
Brotherhood, Barangay Council, Barangay Tanod,
Pastoral Council, Lupon ng Kapayapaan, Mr & Mrs,
People’s Organization) are mechanisms through
which people can ventilate their stand on critical
issues in the community and influence decisions.
Membership in community based organization is
only 17% of the families.
Barangay Maysua, Municipality of Polangui, Province of Albay
GEOGRAPHICAL
Location / Topography Upland area 14.5 kms away from the town proper of
Polangui. Maysua is bounded by 2 barangays of
Polangui – barangay Anapol in the west, Barangay
Cotmon in the south, as well as by barangay Danao
of the municipality of Malinao in the east, and by
the town of Buhi, Camarines Sur in the north. Land
transportation is provided by public jeepneys,
tricycles and single motorcycles along winding
concrete roads.
Climate Similar to other parts of the municipality
characterized by wet and dry seasons.
LAND
Land Area 430.1545 hectares (about 6% of the total land area
of Polangui). Its terrain is generally mountainous with
upward and downward slopes of varying degrees.
Land Use 276.89 hectares (64%) upland agriculture, 136.27
hectares (32%) forestry. The forest areas are mostly
second growth forest with bamboo clumps. The
remaining 16.99 hectares (4%) constitute the built-up
areas for residential, institutional and economic
purposes.
Agricultural land make up of 2% Coconut, 20%
Sugarcane, 33% Corn, 20% Banana, 1% Vegetables,
7% Pili, 17% Abaca.
Land Classification Its soil type is the Tigaon Clay type.
MACRO-ECONOMIC
Labor & Employment Farming Income constitute 10%
Panocha/Sugarcane, 20% Banana, 25% Abaca, 20%
Coconut and 25% Corn.
86% Farming, 3% Domestic Helper, 10% Hired Labor,
and 1% Employee.
Family Income & Expenditure The population are relatively poor with a monthly
average income of P1,250.00.
Average Household Expenditures are 42% food, 17%
education, 12% electricity, 8% planting and 21%
recreation.
DEMOGRAPHICS
Population Total Population of P1,057 (2009 barangay survey)
Household Statisctics Gender 50% female and 50% male.
Total of 192 households.
Housing 85% of the families own their houses. The rest are
allowed to use the houses they do not own.
74% of the household owned the homelots, 24% are
permitted to stay in homelots that others own, and
the rest are renting.
AGRICULTURE / COMMERCE &
INDUSTRY
Crops & Livestock Livestock and poultry raising as well as backyard
gardening are additional economic activities
engaged in by the partner household. Poultry
provides extra family income or food for family
consumption (60%)
Production Area Barangay Maysua is also the biggest Agrarian
Reform Communities. 32.9% of the total land area
are CARP areas with a total of 74 farmer
beneficiaries. There are vast tracks of lands
uncultivated.
Technology There are four sugar milling facilities in the area
which are owned by private individuals. Two are
carabao driven and two motorized.
Production Volume 30% Sugarcane, 9% Corn, 9% Banana, 1%
Vegetables, 10% Copra and 41% Coconut/Copra.
Productivity 24% engage in slash-and-burn/kaingin, 61% practice
mono-cropping, and only 15% implement more
environment-friendly methods of SALT and multi-
cropping.
Agricultural inputs employed in terms of fertilizer and
pesticides are mainly inorganic and chemical-
based (75%)
Market Sold to traders in the barangay and in the town
proper.
Kalamay are sold in the town proper and in the
other towns of Albay province during market days
and fiestas.
INFRASTRUCTURE
ECONOMIC
Roads & Bridges The road network is generally paved and in good
condition but slopy/hilly.
SOCIAL
Service Facilities Elementary School, Barangay Pavilion, Barangay
Chapel, Barangay Hall, Barangay Health Center,
Barangay Outpost, Waiting Shed, Cemented
Basketball Court, Volleyball court on earth surface,
local water system and electricity.
Communication and leisure facilities include cell
phones, local radio and television.
Sari-sari stores also serve as neighborhood centers
where people come together and talk about
matters of interest and update themselves of current
events in and outside the community.
Power/Energy/Communication 40% of the household have availed of ALECO
service and the remaining 60% use kerosene gas as
source of their primary lighting.
Administrative Infrastructure Existing community-based organizations (BPC,
Barangay Council, Pastoral Council, CARD,
Cocofed, Mr & Mrs, Maysua Water Association,
Oyangui Farmers Association, Womens Org.,
Barangay Tanod, Aquinas Cooperative (abaca),
People’s Organization).
Pertaining to the project, the proposed project areas of Barangays Cepres and
Maysua are ideal for the milling facilities for sugarcane processing and muscovado
production considering its proximity to the sugarcane plantations. The land areas
cultivated with sugarcane poses substantial source of raw materials such that Barangay
Cepres has a total of 121 hectares of agricultural land area cultivated with sugarcane
while Barangay Maysua has 56 hectares.
Using the baseline of one cropping season per year and the prevailing sugarcane
production of 13.6 tons per hectare at a single cropping season per year, Barangay
Cepres can produce as much as 1,645.6 tons sugarcane per year while Barangay
Maysua can produce as much as 761.6 tons sugarcane per year. At the initial input
capacity of the proposed plant of one ton sugarcane fresh tubers per day (10 working
hours), the number of tons of sugarcane fresh tubers required by the daily operation for
one year (26 days per month) will be 312 tons of sugarcane fresh tubers for each area.
Thus, in terms of raw materials availability, Barangay Cepres and Barangay Maysua have
as much as 5.2 times and 2.4 times the required sugarcane fresh tubers capacity of the
project, respectively.
THE PROJECT SITE AND BENEFICIARIES
The ideal project sites for every project are usually evaluated based on critical
project site criterions such as its proximity to raw materials (plantations), proximity to
public roads/infrastructures, proximity to the market, availability of basic utilities for
power/electricity and waste disposal, and sufficient water supply. For this particular
project, the minimum processing plant land area needed is 50 square meters.
The project site for Barangay Cepres is a privately owned land voluntarily offered
for solely for use of the project. The site has a midpoint proximity to the existing
sugarcane plantations in the area. It is located along public road, near the barangay
hall and accessible to basic utilities such as to the electricity posts, water supply pipeline,
and waste disposal pipelines could be developed in the area.
The project site for Barangay Maysua is a publicly owned land of 400 sq.meter
which is a portion of 6000 sq.meter LGU owned land. The said site have been voluntarily
offered solely for use of the project supported with 25 years deed of assignment.
Although the only drawback for the said site is its slopy characteristics that may make
the hauling of raw materials difficult to farmers with their existing manual hauling
practices, the site has likewise a midpoint proximity to the existing sugarcane plantations
in the area. It is also located along public road, near the barangay hall and accessible
to basic utilities such as to the electricity posts, water supply pipeline, and waste disposal
pipelines could likewise be developed in the area. The hauling concerns in this project
site could be addressed by looking at the possibility of the use of motor driven hauling
means.
The beneficiaries of this project are the two People’s Organization of the
Barangays Cepres and Maysua. These organizations are the result of the identified
interventions specifically the formation of strong cooperatives such as the People’s
Organization for common service facilities, cooperative services, marketing and
continuing capability building interventions undertaken by this specific program to
mitigate the problem of extreme poverty in rural area communities. The organization
bears the names of Cepres Farmers Organization (CFA) and Maysua Farmers
Organization (MFA). Said organizations are organized last 2009 as Associations that
benefit from grants of several financial sources. The developmental focus of the
organizations are on its barangay level specifically for its farmer members being initiated
with various income-generating projects such as this project.
11The People’s Organization are working closely with other stakeholders in the
barangay and municipal level to pursue its development objectives. It has forged a
Memorandum of Agreement (MOA) with the Local Government Unit of Polangui,
11
People’s Organization Profile. Aquinas University Foundation Inc.
Barangay Council, Paz y Desarollo and Aquinas University Foundation , Inc. last February
12, 2009 creating a Project Management Board, consisting of a representative from
Municipal Planning Development Office, Municipal Agricultural Office, Aquinas University
Foundation Inc., Sanggunian, Barangay Council and People’s Organization, that will
oversee the implementation of the agricultural productivity improvement project. The
focus of its engagement is particularly focused on the establishment of post-harvest
facility for muscovado processing and improvement of sugarcane production.
Through the Project Management Board, institutionalization of the project at the
municipal and barangay level is ensured specially the continuity of its projects that will
not only bring additional income to its members but to the development of the
barangay as a whole.
The objectives of the association are to promote the moral, social and economic
well being of the members; to protect and uphold the individual and collective rights of
all the members; to foster an association that is harmonious and progressive through
effective and efficient management of its programs or projects; to advocate and strive
for the adoption of legislation, policies and programs that will promote the economic,
social and general well-being of all the members, in particular, and the working class in
general; to promote, mainstream and actualize gender concerns and perspectives in all
the activities of the Association; to engage in economic and livelihood projects for the
benefit of the association; to provide social aid benefits to members, to uplift their plight
to secure their human dignity; and to contribute to the society its modest share in nation
building through self-help programs as an NGO representing the farmers and agricultural
workers.
The policy making body of the association is the General Assembly which has an
annual meeting to discuss policies and directions. The executive Board has a regular
monthly meeting which is set on every first Sunday of each month wherein the activities
of the month are discussed and planned. The executive board oversees the day to day
implementation of the activities. The agricultural component of the project is mostly
participated by its para-agriculturists. Ideally, this para-agriculturists who are distributed in
each purok will provide tutorial and re-echo activities of the trainings on agriculture
practices particularly on Bio-intensive gardening and sugarcane production.
Small group meetings are also done at the self-help group level to discuss
policies. It serves as arm of the association to ensure that all members are involve or
participates in the organizational and agricultural activities specially in enhancing
bayanihan spirit at the purok level. The meetings of the association are participatory. It
encourages the participation of all members men and women in all activities. Policies
are consulted to all the members before it is finalized and implemented. For instance,
the People’s Organization of Maysua approved policies such as Livestock Policy and
Policy for Tools. The livestock policy includes the creation of the Project Management
Team, the sharing of the stocks between the Association and the caretaker, the care of
the livestock and schemes for dispersal of the stocks and sustainability of the stocks.
These organizations operate based from the grants provided by AECID through
Paz y Desarollo and Aquinas University Foundation Inc. PyD and AQFI provided technical,
material and logistical support for the agricultural productivity improvement specially the
BIG technology, sugarcane production and establishment of post harvest facilities. The
Local government unit of Polangui also allocated an amount of P 350,000.00 for the
building of the milling facility for the two project sites. An additional or supplemental
budget is also being lobbied at the Provincial Government of Albay for the same
purpose. Similarly, it has close links with the Municipal Agrarian Office for farm inputs and
technical support not only in agricultural aspect but also for the livestock component of
the project. Moreso, land and other facilities like the organization’s office are being
provided by the Barangay/Village Council of the two barangays. It has also pledge
additional material support for the fulfillment of the project.
Without this project, the day to day operations of the association is supported by
its members through the provision either in cash (from the collection of membership
fees), in kind or through free labor individually and collectively. The general membership
is the decision making body of the association. It has a governing body as stipulated in its
constitution and by-laws.