Phillipines: P165-M Alternative Livelihood Project Targets Tobacco Farmers

Source from:  Business World 10/08/2012

THE NATIONAL Tobacco Administration (NTA) is preparing a P165-million agribusiness project to provide alternative livelihood to some 7,700 tobacco farmers in Northern Luzon, the Agriculture department’s attached agency said in a statement yesterday. NTA said the project entails building an AgriPinoy Tobacco Farmers Food Processing and Trading Center in Barangay Nanguneg, Narvacan, Ilocos Sur, as well as a contract growing scheme involving hogs and poultry wherein the government will provide production inputs. "The trading center shall buy and process meat into best-selling products like bagnet, Vigan longaniza, tapa, bacon, barbecue, and similar products for sale in food terminals, groceries, markets, hospitals and offices in Region I, CAR (Cordillera Administrative Region) and Metro Manila," the agency explained. NTA will also train tobacco farmers in hog fattening and broiler growing and will provide other forms of technical assistance, including monitoring and supervision. NTA Administrator Edgardo D. Zaragoza said the project is part of his agency’s comprehensive assistance scheme for small tobacco farmers. "It shall also provide an alternative marketing system and business model to increase tobacco farmers’ purchasing and bargaining power, and develop farmers’ capabilities to manage dynamic rural enterprises," he added. Mr. Zaragoza said NTA expects the tobacco farming sector of beneficiary areas to earn additional income of up to P8 million in the center’s first year of operations. “This is projected to increase to P 10. 4 million in the second year, P13.6 million in the third year, P17.8 million in the fourth year, and P23.3 million in the fifth year of operation," he said. The project will serve the whole Ilocos region, as well as Abra, La Union and Pangasinan. NTA said it plans to expand the initiative’s coverage to other major tobacco growing provinces in the Cagayan Valley. "Considering that [it caters] to basic needs and that food accounts for 46.91% of the personal consumption expenditures of average Filipino families, the [project] will have a sure pre-arranged market, not only locally, but in the future, on a global scale," said Mr. Zaragoza. Enditem