THE FOOD SUPPLY CHAIN PROGRAM

PROGRAM OBJECTIVES

General Promote national food security by

increasing agricultural productivity; and increasing farmer’s income by improving efficiency in the food system

PROGRAM OBJECTIVESSpecific

Extend financial assistance to the key players in the food system such as agricultural producers, consolidators, processors and various market players;

Promote market linkages between agricultural producers and processors/ market players; and

Provide capacity building support to strengthen farmers’ organizations and enable them to meet market product requirements in terms of volume and product quality.

Credit Conduits• Coops• Ass’n• ABEs• CFIs

• MILLER • PROCESSOR• MANUFACTURER

Market Outlet for local/foreign buyers

Farmers and Fisherfolk

Loan

Working CapitalFixed Asset Loan

Sales Proceeds

Agri Produce

Relending

Working CapitalFixed Asset Loan

Working CapitalProduction Loan

Agri Produce

Sales Proceeds

Raw Materials

LANDBANK

Repayment

Repayment Repayment

Repayment

Repayment

INTEGRATED CORN PRODUCTION AND HOG FATTENING PROJECTPr

od’n

Loa

n/

Fixe

d As

set/

WC

Coop Conduits/Consolidators

18 coops/4 SMEs/1 RB/1 Corp.

Contract Growers/Farmers/SMEs

21 coops/7,795 SFF

Feed MillMarcela Farms, Inc.

Biotech Farms, Inc.

Supermarkets/Malls/ Institutional BuyersAgri commodity/

Fattened hogs

Feeds

Fixed Asset Loan / W

C

Pork/Processed Meat

IndividualFarmers2,859 SFF

ProcessorMarcela Farms, Inc.Biotech Farms, Inc.

2 coops

SlaughterhouseBiotech Farms, Inc.

Meat PackagingMatatum Meat Packaging Corp.

Cold StorageKCC Malls

Legend: = Funds flow (loan, repayment, sales

proceeds) = Commodity flow

Relending Corn Produce

Prodn. Loan Repayment

Corn Produce

Sales Proceeds

Fixed Asset Loan / WC

Sales Proceeds

Repayment

Sales Proceeds

Total Financing Requirement – P1,764.49M

Corn Production – P 111.93MContract Breeding/Hog Fattening – P 438.24MFeed milling – P 766.82MProcessing – P447.5M

INTEGRATED CORN PRODUCTION & HOG FATTENING PROJECT

Description of Schemes The participating cooperative will be extended a financing facility (for

relending to individual farmers) for corn production based on a market contract with the participating processors – Marcela Farms and SIDC.

The partner cooperative will consolidate the corn produce and deliver the harvest to the partner processor/ feed mill.

The collections of agri production loans extended to the cooperatives will be thru the processor.

A separate financing facility will be provided to contract growers for hog fattening, again based on a market contract with processors.

The fattened hogs will be sold to partner processors for meat processing.

Collection of loans extended to contract growers will again be via the partner processor.

Processed meat are sold to institutional buyers/ supermarkets

FISH PRODUCTION FOR LOCAL CONSUMPTION AND EXPORT

LANDBANK

CO-OP/CONDUITS/AGRI-BUSINESS ENTITIES Co-ops – 7, SMEs-5, CFIs-3

INDIVIDUAL GROW-OUT/FARM

OPERATORS214 hectares

INTEGRATORS/WITHOUT COLD STORAGE

One (1)

PROCESSORFour (4)

INSTITUTIONAL MARKETS/

MALLS

Production Loan

Fixed Asset/Working Capital Loan

Working Capital Loan

Fish Harvest

Fish Supply

Processed / canned fish

Fish HarvestRelending

Working Capital Loan/Fixed Asset

LEGEND

Funds Flow (Loan and Repayments )

Commodity Flow

RepaymentRepayment

Sales proceeds

Repayment/Sales Proceeds

Repayment

Repayment

Total Financing Requirement

Fish Production – P45.0 MProcessing - P85.0 M

FISH PRODUCTION FOR LOCAL PRODUCTION & EXPORT

Description of Schemes

Based on a market contract with a processor – Gen Tuna, participating cooperatives/ credit conduit shall be extended financing assistance for relending to individual farmers for fish production

The cooperative will consolidate fish harvest and deliver the same to the partner processor.

Collection of loans extended to the cooperatives will be thru the processor.

Partner processor will process the fish harvest and sells the same to institutional buyers

Partner processor and exporter are also provided with financial assistance