the story of bagnos multi purpose cooperative
TRANSCRIPT
The Story of Bagnos Multi Purpose Cooperative Name of Cooperative : BAGNOS MULTI-PURPOSE COOPERATIVE Address : Binacag, Banna, Ilocos Norte I. Brief History/Background of Co-op
Binacag is located at the southern part of Banna, Ilocos Norte. Bounded from the north by
Brgy. Imelda, and from the east by Brgy. Bomitog and from the west and south by the
Municipality of Nueva Era. It has an area of 59.6 hectares composed of hills and forest areas
and agricultural lands covered by Agrarian Reform Program. Life then in the community was
remarkably hard due to social, economic and political chaos which was a common spectacle
within its outskirts, hence, the Department of Agrarian Reform (DAR) included the area under
BINATOG Agrarian Reform Community in the municipality for easier and better way to promote
and deliver basic services to Agrarian Reform Beneficiaries (ARBs) for development.
Since there was no proponent organization yet to assist the agency in project
undertakings, the natives in the barangay spearheaded the organization of BAGNOS MULTI-
PURPOSE COOPERATIVE. Mr. Esteban Medrano and Ms. Amelia Bautista became the first
Chairperson and Manager respectively. So, on December 21, 2000, with barely 12 initial active
members from 39 incorporating ARBs and with scanty capital of P4,457.00, it was registered
under Reg. No. DAG-4340. Its name was conceived from an acronym, meaning Bassit A
Ganansia Naurnong Omado Sanikua (which means a little profit when manage properly will
increase assets), and this refers to the income generated through the joint effort of the staff,
officers and members. The Officers resolved the creation and operation of a consumer store.
With the continuous patronage and support of the community, its capital increased, and a credit
service was added to solve the financial problems of its members, particularly those belonging to
the marginal strata. This vital transformation created an impact in the locality particularly the way
of living of the people.
Through the years, palay trading, goat and hog raising and rice coffee production were
added to the coop businesses. The latter is in support the municipality’s “One-Town-One
Product” and participated to various local and national trade fairs. Its latest endeavor is
butchering pig and “longanisa” production. Asset has also increased with the acquisition of
hauling truck to complement its palay trading and a motorcycle with side wheel for the
butchering and store operations. A warehouse was also erected and rice coffee production
facility was bought with the assistance of the Dept. of Labor and Employment wherein they
earned awards and recognitions.
The financial status of the cooperative as of June 2015 boosts the coop leaders to work
better for the betterment of the organization. The coop realized a tremendous rise in its
membership to 623 regular members. 567 of these members are full time farmers with an area
of tillage of 826 hectares located within the municipality of Banna, Nueva Era and Pinili, Ilocos
Norte. Capitalization and much income lead to the expansion of services. The officers never lost
focus to what they are bound to pursue. “Service to people and community”, this might be the
rationale behind the rapid growth of the coop it has created an image of worthy and trust and
confidence from the public.
Today, with the coop efforts of its 5 BODs, 14 motivated and efficient Management staff
and the presence of effective and devoted Development and Operations Officer, officers and a
very supportive membership, the coop have metamorphosed from a mere consumer store to
other business agriculture enterprise that is expanding in response to the demands of its
constituents.
II. Success Factors of Bagnos Multi-Purpose Cooperative M embers work hand in hand O fficers are the role model N ever leave work unfinished, do it now E fficient and effective management staff Y ear end evaluation of plans and performance evaluation of employees, officers and services I nnovative S elf-help, self-discipline O n plan, continuous education annually U nselfishness and transparency R esponsible members following the PSPs S upportive government agencies, LGU and Non-Government Organizations
III. Best Practices of Bagnos MPC The cooperative always promotes the welfare of its farmer members and to the community as well. It provides them capital for their production needs. It also assists them in marketing their palay produce with its trading business. To help them lessen their production inputs, the coop encourages its farmer-members to produce their organic fertilizers and follow the modern farming technology. The butchering and longanisa making business of cooperative helps hog raisers-members increase their income. Its rice coffee production also supports “One-Town-One Product” of the Municipality of Banna. The coop encourages and teaches each member to save at least a portion of their income. The coop also supports environmental projects of the community like tree planting, clean and green program, garbage segregation, youth sports activities, school activities, and peace and order campaign.
COOPERATIVE PROFILE
1. Background
a. Name of Cooperative : BAGNOS MULTI-PURPOSE COOPERATIVE
b. Business Address : Brgy. Binacag, Banna, Ilocos Norte
c. Contact/Tel. Nos. : 09198708177 / 09275222985
d. Date Organized : September 3, 2000
e. Date Registered with CDA : Dec. 21, 2000 Amendment: Jan. 18, 2010
Registration Number : DAG-4340 / 9520-01006285
f. Tax Identification Number : 005-512-730
2. Membership
2011 2012 2013 2014
No. of Members 316 447 542 592
Male 123 161 190 199
Female 193 286 352 393
2.1. No. of initial/incorporating members: 39
2.2. Active Members:
2011 2012 2013 2014
No. of Members 316 447 542 592
Male 123 161 190 199
Female 193 286 352 393
2.3. Membership Classification:
Profession/Industry Affiliation Number of Members
Farmers 115
Fishermen
Agrarian Reform Beneficiaries (ARBs) 427
Cultural Minorities
Government Employees 25
Employees in Private Firms 21
Market Vendors 6
2.4. General Assembly Meeting:
2013 2014
Regular Meetings 1 1
Special Meetings 3 3
Note: Quorum is 50% + 1
3. Organization and Management
a.1. Board of Directors
Name Position Educational Attainment No. of Years in the
Coop
Ofelia P. Cabanatan Chairman College Level 14
Maribel C. Rosquita Vice-Chairman College Grad. 14
Imelda P. Corpuz Member High School Grad. 14
Brenda C. Medrano Member High School Grad. 14
Marizel D. Cargado Member High School Grad. 11
Guian C. Gamet Secretary College Grad. 4
a.2. Board of Directors Meetings
2013 2014
Regular Meetings 12 12
Special Meetings 2 3
b. Management Staff
Name Position Educational Attainment
No. of Years in the Coop
Remelyn Y. Bautista Manager College Grad. 13
Emely Q. Juan Treasurer College Grad. 8
Marilou L. Gamet Bookkeeper College Grad. 13
Amelia Y. Bautista Dev’t Officer / Project Manager, Rice Coffee
College Grad. 14
Anily R. Juan Mktg. Staff, Rice Coffee College Grad. 14
Evelyn G. Quiroc Purchaser, Rice Coffee High School Grad. 14
Marites G. Pagdilao Seller College Grad. 8
Erwin J. Morella Driver High School Grad. 7
Robinson Medrano Helper High School Grad. 8
Ringo B. Benito Helper High School Level 6
Rexie J. Benito Account Officer College Level 6
Ahbel D. Faderan Account Officer College Level 6
Bryan Dave R. Juan Butcher High School Grad. 5
Joeffrey R. Juan Butcher (on leave) High School Grad. 5
4. Name Organization/s Providing Assistance:
Organization/Agency Nature of Assistance
Department of Agrarian Reform Financial/Technical/Marketing
Dept. of Agriculture Technical/Marketing
Dept. of Labor & Employment Financial/Technical/Marketing
Dept. of Trade & Industry Technical/Marketing
LGU-Banna Technical/Marketing
Land Bank of the Phils. Financial/Technical
National Food Authority Technical/Marketing
Cooperative Development Authority Technical
Prov. Gov’t of Ilocos Norte Technical
Phil. Crop Insurance Corp. Technical
CARD Inc. Technical
Dept. of Science and Technology Technical
5. Business Operations
a. Return of Investment
2012 2013 2014
Return of Investment 9.29% 8.05% 8.73%
c. Production Profile
Product Type Variety/ Spec
Area Devoted (Has)*
Ave. Yield
(MT/Ha)*
No. of Croppings
/year
Marketable Surplus
Months Available
Mode of Marketing
Palay Hybrid/ Certified
2
d. Marketing
Palay Rice Coffee Meat Processing
Market Outlets NFA, private traders
Robinsons’, Souvenir Shops (Vigan, Paoay,) Restaurants, Groceries
Local market
Mode of Payment Cash cash, consignment cash, consignment
Frequency Harvest season Daily Daily
Sources of Market Info Meetings trade fairs, word of mouth, meetings
word of mouth, meetings
6. Facilities and Equipment Profile
Particulars No. of Units
Capacity Ownership Status (Leased or Owned
Condition
Hauling Truck (elf) 1 7 tons owned operational
Motorcycle 1 300kg owned operational
Roasting machine 1 75kg owned operational
Grinding machine (rice coffee)
1 owned operational
Induction sealer 1 owned operational
Grinding machine (meat) 1 owned operational
7. Financial Status (Data for the past 3-year period and specify cut-off date of the current period of
financial statements)
Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014
Net Income 653,520 692,652 817,888
Total Assets 8,105,378 9,828,591 11,456,136
Total Liabilities 3,190,159 3,873,415 3,904,470
Net Worth 4,915,219 5,955,176 7,551,666
Paid-Up Capital 3,161,869 3,831,518 4,446,200
8. Awards Received
Most Progressive ARB Organization
DAR 2003 Regional Winner
Kanayunang Kabuhayan Award DOLE 2010 Regional Winner
Kanayunang Kabuhayan Award DOLE 2010 National Level 1st Runner Up
Best Beverage Award DAR 2011 National Level
Gawad Saka DA 2011 Regional Winner
Gawad Pitak LBP 2011 Regional Contender
Volume Sales-Platinum Award CJ Phils. 2011 Ilocos Norte
Outstanding Cooperative CDA 2012 Regional
Top Performing Cooperative CDA 2014 Ilocos Norte
Gawad Saka DA 2015 Regional Winner and National Finalist
Best Livelihood Project DOLE 2015 Regional Winner and National Finalist
SERVICES OFFERED
CONSUMER STORE
CREDIT AND SAVINGS
Agricultural Production Loan
Providential Loan
Emergency Loan
Salary Loan
Consumer Store Loan
Rice Loan
PALAY TRADING
AGRI-INPUTS TRADING
HOG & GOAT RAISING
RICE COFFEE PRODUCTION
BUTCHERING & MEAT PROCESSING
MICROFINANCE PROVIDER
MICRO INSURANCE
CONSUmer store
The Consumers’ Store started its operation on September 3, 2000. It
occupied a small room at the Brgy. Binacag Public Market with a meager
amount of ₱4,000 capital. As it was expected, there was a limited lines of
goods offered to customers.
There was a renovation of the Brgy. Public Market on January 2010, and the coop
donated ₱34,920 for the finishing of one stall where the consumer store is now located.
With the wider space, it can now accommodate more stocks and it is more convenient for
buyers.
Consumers’ Store. It was the first service offered to members. This is a project that caters to
the needs of almost all of the members and people in the community. The mark-up of basic
commodities here is ranging from 7-9% only which is of great help to the customers especially
now that we are facing economic breakdown. At least 15% of the annual net income comes
from this project.
CREDIT SERVICE (PROVIDENTIAL LOAN)
Mrs. Mary Ann Vidad filling-up the loan application form when she
applied providential loan for small business.
Mrs. Vidad during the project monitoring in her barbecue stand.
After 2 months, Mrs. Vidad is paying her loan to the
coop. According to her, she had already earned an
ample capital for her barbecue business. She can sell at
least 1 kg as per daily schedule (4 p.m.-6:30 p.m.) with
an average net income of ₱100.
CREDIT SERVICE
Members of the Credit Committee review the Loan
Application Forms before they visit collaterals for credit
investigation.
Mrs. Filomena Benito poses with the
bags of rice during the release of her rice
loan. Before, members used to avail rice
loan from private traders with an
interest of 23% per month. To lessen the
burdens of the members, this service
came into existence 6 years ago. The rice
loan capital came from CDIF with only
42 bags as the starting capital. At first, a
member can only avail 1 bag rice.
Today, a member can avail 5 bags rice.
This year 2014, the coop released 280
bags rice to 105 members earning gross
income of ₱158,570.
Credit and Savings. Loaning service is the solution of usurious lending practices in the
community. It relieves the members’ burdens of high loan interests. This service gives them
the opportunity to start being productive through lending of capital in whatever project they
want to pursue. A member can avail loan according to purpose namely: Agricultural
Production Loan, Providential Loan, Emergency Loan, Rice Loan and Consumer Store Loan. A
single members’ limit to coop’s loan is ₱60,000. In deposit-taking service, it offers even higher
interests than the other commercial and rural banks. At least 14% of the annual net income
comes from this service.
PALAY TRADING
RIGHT MARKET OF MEMBERS’ PALAY PRODUCTION
The palay trading service of the coop improves
profitability for farmer-members by providing fair and
competitive price of palay within the community.
PALAY TRADING
The coop driver and the helper as they haul
palay to the coop warehouse during cropping seasons.
The hauling of milled rice distributed to members especially
during lean months.
Palay Trading. It eases the burdens of farmers in this part of rural area especially in terms of
marketing and price. The coop buys palay product of the farmers at a higher price to avoid
unfair advantage from private traders. On its early years of operation, farmers delivered their
palay to the coop, but now, their products are being hauled by the coop truck service. The
coop warehouse was built through CDIF from palay marketing at NFA. At least 34% of the
annual income comes from palay trading.
RICE COFFEE PRODUCTION
The Banna Blend workers are blending the
ingredients of success every time they pack the rice coffee.
And they seal it with expectation of customers’
satisfaction.
Rice Coffee Production. The capital for the purchase of machines, equipment and materials
needed came from the Poverty Free Zone Program of DOLE in the amount of ₱895,500 last
March 2008. The main objective of this project is to increase employment and alleviate
poverty. At first, the project aims to increase prices of the rice production of members.
From the palay production of members, the coop identified a project that
will generate employment and augment income, and this is the production of
Rice Coffee.
Because of processing, this may be sold to higher price and the coop can compete with the
scrupulous traders who used to take advantage of buying rice during peak season. With
various trainings conducted with regards to the project, it only not gives a way to the coop to
be widely known but also the community as a whole. The operation started last June 2008.
The annual sales from January 1, 2012 to December 31, 2012 is ₱1,274,410. This project has
twenty direct employees and 28 indirect employees. With more than 2 years of operation,
national awards have been achieved like “Kanayunan Kabuhayan Awards” and “Best Beverage
Awards”.
RICE COFFEE PRODUCTION
PROCESSING EQUIPMENT
Roasting Machine
Banna Blend Rice Coffee is now available at Robinsons Supermarket, Waltermart and
Tiendesitas at Manila. The product is also fast moving in souvenir shops and pasalubong centers
at Ilocos Norte and Ilocos Sur. Baliksayans also brought this product to other countries like United
States, Spain, Singapore, Hongkong, Canada and Italy.
The rice coffee sales for the year 2013 is ₱1,394,695 and year 2014 is ₱1,756,885.
I INPUTS TRADING
At the start of the Agri-Inputs Trading, the coop has no warehouse
so they requested one of the members to lend his barn. This is where the
fertilizers were stocked. Unfortunately, a strong typhoon destroyed the
barn.
With the absence of warehouse, different
products were cramped into a small, one unit
stall at the Binacag Brgy. Public Market. Such
situation challenged the coop to resolve it at once.
Agri-Inputs Trading. It provides easy-to-access agricultural inputs such as feeds and
fertilizers within the community. Farmers are grateful that the coop has this service to liberate
them from exorbitant prices of fertilizers. Not only this, the cooperative is now an innovator to
the use of organic fertilizer which is of great help to peoples’ health and in the environment. At
least 11% of the annual net income comes from this service.
supPORT
SERVICES
WAREHOUSE
On July 8, 2005, a 70-square meter warehouse was constructed on a
1,000 sq. meter lot donated by Mr. Lionel A. Verano Jr. The coop members stand
firm together to build a dream and strive for its attainment. A farmer, a
housekeeper, even an employee, became a carpenter of the warehouse. 30% of
the building materials came from the CDIF (NFA), and 70% came from the coop
fund. Labor was the equity of members.
Hon. Carlito “Carly” A. Abadilla II cuts the ribbon of new opportunity for the
coop on December 21, 2005. A dream for a coop warehouse came true. This is an
inspiration to goad on for more.
SUPPORT SERVICES
HAULING TRUCK
This support service of coop projects
was acquired on March 3, 2010 worth
₱600,000. The whole amount came from the
internal fund of the cooperative.
Hauling Truck. The acquisition of hauling truck has been a long term plan (5 years) because
it was always a backlog until the right time. The fund used was from the coop capital and
optional fund (reserves). The hauling truck is a very important support service to all the
services of the coop like in the procurement of goods sold at the consumer store, agri-inputs
trading, procurement of agricultural products, and delivery of rice coffee. The presence of the
truck lessens transportation cost of the organization, increase volume purchase and sales on
agricultural products (rice), and easy access of transport facility whenever needed.
SPECIAL PROJECT
GOAT RAISING
Lilia Dumaoal is one of the beneficiaries of Goat Raising Project. The
objective of Goat Raising is to find ways and means to increase household
income. The capital comes from the Unilateral Trust Fund of FAO TSSARD of the
Dept. of Agrarian Reform in the amount of ₱56,500 used for the purchase of 16
heads doe and 2 bucks plus biologics. A member can avail 1 head and payment
will be 2 kids. There are already 120 beneficiaries realizing additional income of
₱6,000 annually.
Mrs. Elena Parco availed 6 heads of the hog fattening loan on December
2013. Now, her loan is fully paid. She earned a total income of ₱14,675.
Special Project. This program is composed of Goat Raising and Hog Raising. It promotes
livelihood in the community to augment meager income. This project was started with only 18
heads of goats, eventually it expanded into Hog Raising. With the testimonials of the
numerous beneficiaries, this project will at least relieve them from the serious effects of
economic crisis. At least 4% from the annual net income comes from special project.
HOG RAISING, BUTCHERING & MEAT PROCESSING
The starting capital of Hog raising came from the income earned in goat raising project. The
success was due to the monitoring and evaluation of the concerned coop officers and the
eagerness of the beneficiaries to earn additional income.
The 2 coop butchers as they are about to transport the
hog into the slaughter house.
Butchering cum Meat Processing. With the rise of marketing problem of hog raisers
especially the beneficiaries of hog raising loan, the cooperative finds a way to resolve this
concern. On the previous years, there are numerous complains of hog raisers about low price
or frauds of weight of their livestock, and the consumers about the quality of meat bought at
the wet market. Being sensitive to the needs and demands of the community, the coop
ventures to butchering service then later to meat processing. On its first six months of
operation, at least 10% of the annual net income comes from butchering and meat processing
service.
MICROFINANCE PROVIDER
The Account Officers attend the
Mentoring and Technical Guidance
(MATG) facilitated by CARD personnel.
Center meeting is conducted at
Binacag D, one of the 18 centers of
Bagnos MPC microfinance.
Borrowers fall in line for the release of
microfinance loan products, the micro-
agri and micro-enterprise.
MICROFINANCE SERVICE. This is the newest program of the cooperative started on June
2012. This service provides a broad range of services such as savings, credit insurance and
education to a large member of socio-economically challenged households for viability and
sustainability. Now, it has 18 centers in 9 barangays covering the towns of Banna, Nueva Era
and Pinili.
IMMERSION
At first, the coop officers and staff have immersion at
Claveria Grassroots Coop at Claveria, Cagayan in order
to learn and adopt the best practices of the coop.
Visitors from ARNAP MPC,
Cabugao, Ilocos Sur expressed their
gratitude to Bagnos MPC during their
visit.
LGU and NGOs of Piddig looking in detail
at the product of Banna Blend Rice
Coffee/Bagnos MPC.
LEARNING EXPEDITION AT BAGNOS MPC
Visitors from Abra
Officers and staff of Claveria Farmers’ MPC
visits Bagnos MPC.
Officers and staff of three cooperatives
from Nueva Ecija.
A coop representative from
Cervantes, Ilocos Sur presents a
plaque of appreciation to Bagnos
MPC during their field trip at the
coop.
Visitors from
MIMAROPA listen attentively to
the Development Officer during
their educational tour at
Bagnos MPC.
LEARNING EXPEDITION AT BAGNOS MPC
Students from MMSU conducted research at Bagnos MPC.
105 students from MMSU College of Business Economics and Accountancy
listened to the briefing and orientation of the Development Officer of Bagnos MPC
during their educational tour at the coop.
It was a dream comes true that today, the BAGNOS MPC is the one being visited
by the coops to replicate the best practices and to learn the secret of their success
especially the zero delinquency record of the coop. The staff and the officers are not
selfish to share these secrets so that someday, they will follow the footstep of Bagnos.
Students from different schools and colleges, universities have also conducted their
research for their requirement in the school like Catagtaguen National High School,
Divine Word College of Laoag, Northwestern University, MMSU and Data Center
Philippines.
LEARNING EXPEDITION OF BAGNOS MPC
The coop officers and
staff are so much eager to
learn the different activities
of Microfinance operation.
Bagnos MPC needs to discover how to effectively operate Microfinance Service. So the
coop officers and staff, through the assistance of DAR, attended learning expedition at
Naguilian Christian Multi-Purpose Cooperative in Lallo, Cagayan on May 2012.
LEARNING EXPEDITION AT BAGNOS MPC
Fortunately, Bagnos MPC is now accommodating other cooperatives who want to learn
effective and successful operation of Microfinance.
Bagnos MPC
welcomed the officers
and staff of two
cooperatives from
Zambales and DAR
personnel from
Zambales and Bataan
recently. Bagnos is
their chosen
destination for 2-days
study mission about
Microfinance.
Bagnos MPC
officers and staff
warmly shared their
experiences and
learning about
Microfinance operation.
TRAININGS AND SEMINARS
PRE-MEMBERSHIP EDUCATION SEMINAR
Pre-Membership Education Seminar (PMES). This seminar is required to be attended by an
incoming member before his application is approved. It will produce quality members because
at first, the incoming members will have an idea about what a cooperative is, what are the
benefits, rights, duties, and functions of a member, the services being offered and its policies,
systems and procedures. By this seminar, the incoming member can decide whether to
continue or not his membership and the membership committee can also use their
participation during the conduct of the training as one basis for evaluation and approval. This
is conducted by the education committee.
OWNERSHIP SEMINAR
Ownership Seminar. This is conducted annually in Bagnos MPC to update its members the
reason why they joined the cooperative. This is the reason why majority of the members have
active support and participation to all coop activities and services. During the conduct of the
seminar, coop plans will be presented for approval, ratification of PSPs and other important
matters will be discussed in the open forum. The facilitator will be the Education Committee,
co-facilitators are the staff and the officers.
THE GENERAL ASSEMBLY
During Annual General Assembly Meeting, some of the activities
were Presentation of Annual Reports (BODs, different committees
and management staff), Election of Officers, Raffle Draw,
Distribution of Interest on Capital and Patronage Refund.
As of June 30, 2015, the Bagnos MPC membership is composed of 623 regular
members. Members came from different towns in Ilocos Norte but the majority came
from Banna, Nueva Era and Pinili. It has 98% active members. In day-to-day activities
of the coop, members participate and show involvement.
ANNUAL GENERAL ASSEMBLY
The members fall in line for their registration on time.
Members exercise their right to vote through secret ballot...
... while the others are patiently waiting
for their turn.
LEADERSHIP TRAINING
Action planning was integrated in Leadership Training. It has
always been an advantage when coop leaders are personally
involved in a long term planning for them to see and analyze the
previous accomplishments and it serves as a basis for the plans
and programs of the cooperative.
Hands-on Training. This is always conducted to the officers, staff and second
line leaders to review their general and specific task in their field of endeavour.
This will also enhance their capabilities to execute their functions in the time and
place to gain the trust and confidence of the members they are serving.
Knowledge is power. The development and operations officer will facilitate with
manager as co-facilitator.