Southern GEMS vol. 2

vision

We see the Philippines occupying its rightful place in a community of nations, prosperous and free.

Together with business, we are an active and leading partner in propelling the Philippines toward an inclusive, dynamic, and thriving economy. Our success in anchored on global competitiveness, with social responsibility and consumer welfare as our platform.

In all these, we adhere strictly to the tenets of professionalism, integrity and transparency.

We continue to be the public’s Agency of Choice, an organization where creativity, innovation, professional and personal growth find expression. We are ONE DTI.

mission Enabling Business

• Enabling business environment/ reduce cost of doing business to facilitate trade & investments.

• Global Competitiveness • Value Chain and industry cluster management

Empowering Consumers

• Safe and reasonably-priced products and services • Supply chain management

values

• Professionalism • Service-Orientation • Integrity • Creativity • Teammanship • Resourcefulness • Conscientiousness • Loyalty • Continuous Learning & Growth

programs & services Contact us now: NELLY NITA N. DILLERA Provincial Director PROVINCIAL OFFICE 2nd Floor, Quality ApplianceBldg., Alunan Highway, Tacurong City Telefax: (064)200-3166 Email : sk@dti12.org

• Product Development, Product Branding, Trademark Registration • Product Promotion, Trade Fairs, Market Matching, Trade Trainings • Investment Promotion, Facilitation, Knowledge Management • Credit Brokering, Project Development • Productivity Training, Technology Promotion, SMED Council/ Industry Org Strengthening • Consumer Education, Creation and Strengthening of Consumer Groups, Case Resolution • Monitoring & Enforcement of Fair Trade Laws, Product Standards • Business Name Registration and Shop Accreditation

Preface

table of contents

1

BFAR Services

3,5,7

Messages

8-10

Schedule of Activities

21

15-16 SULTAN KUDARAT QUICK FACTS

Milfish Production in the Philippines

15-16

Site Selection,Milkfish Farming in Pens or in Cages

27

SWOT Analysis

15-16 BANGUS LIFE HISTORY & HABITAT

30

Institutional Support

31

List of DTI-SK Assisted Organization/ Association

42-53

55

Project Briefs Working Committees

15-16 RELYENONG BANGUS

15-16 ECONOMICS OF BANGUS PRODUCTION

15-16 PRODUCT CATALOG

T

his is the second edition of Southern Gems magazine, printed in line with a provincial or regional investments event in region 12 that highlights the many treasures in this part of the country.

For this edition, this magazine highlights the 1st Sultan Kudarat Bangus Festival featuring among others an Investment Forum. This is considered one of the gems of Southern Philippines, the others being Coffee, Oil Palm, Muscovado, Rubber, Coconut, Banana, Mango, Tuna, Craft-tourism and Business Process Outsourcing.

Region 12 aquaculture is mainly on bangus production, covering around 62% of the total aquaculture in 2007-2009. There are almost 200 bangus farm operators spread in Cotabato City, Sarangani, General Santos City and Sultan Kudarat.

In Mindanao, particularly in Sarangani Province and General Santos City, several processing plants exists which exports fresh and processed milkfish. About six (6) plants are exporting to US and two (2) of these plants have penetrated European market that commands a better price than US market.

This magazine intends to update the bangus stakeholders on the industry situation, production technology, project brief and the region’s major players.

Sultan Kudarat is also highlighted here as the host. Industry Profiles, Facts and Figures and products of the entrepreneurs are also included.

With the information included, we hope that bangus investors are properly guided and that people who want to know more about Sultan Kudarat, are informed.

NELLY NITA N. DILLERA Provincial Director Department of Trade & Industry Sultan Kudarat

BFAR SERVICES

1. Agriculture and Fisheries Support Services for Increased Productivity and Income • Production Support Services • Quality Broodstock/Fingerlings Production & Dispersal • Laboratory Services for Mollusc, Crustaceans and Seaweeds • Aquaculture for Rural Development • Inland Fisheries and Aquaculture Services • Maricultura Parks • Pilot Areas Culture of Ulang • Promotion of Crab Seed Production • Promotion of Aquarium Fish Culture • Promotion of Seabass Culture • Conversion of Wasteland Areas into Aquaculture • Additional Installation of 20 Seaweed Nurseries per Region • Market Development Services • Marketing Assistance • Fisheries Statistics • Facilitating Access to Market thru post harvest equipment • Post-Harvest and other Agricultural Infrastructure/Support Services • HACCP-Based Fish Inspection Unit (HFIU) • Administrative Support and Product Certification Unit (ASPCU) • Fish Processing • Maintenance of BFAR Quality Assurance Laboratories • Promotion of Value-added Products

2. Dynamic, Client Responsive and Rationalized Applied and Basic R&D service • Extension Support, Education and Training Services • Trainings and Technical Assistance • Undergraduate Fisheries Scholarship Grant • Suppot to Municipal Fisherfolk - Integrated Livelihood - Lakbay Aral for Fisherfolk - Increased Participation of Women in Fisheries • Research and Development Services • Aquaculture - Continue Research and Development Studies in the Culture of ilapia, Ulang, non-traditional species - Research Studies to Reduce Production Cost in Aquaculture (i.e., Formulation of Low Cost Feeds) - Shift of Fisheries Operation from China Sea to Pacific Ocean - Development of Eastern Philippines and Regions 1 and 2 for Commercial Fisheries • Marine Fisheries

3. Comprehensive Regulatory Services • Regulatory Services

4. Plans, Policy, Programs and Project Formulation, Coordination Advocacy, Monitoring and Evaluation • Information Support Services (FIMC) • Policy Formulation and Planning Services

Contact Us: DIR. AMBUTONG K. PAUTONG, OIC Regional Fisheries Office No. XII Vensu Bldg., National Highway 9500 General Santos City Tel. No.: +63(83)552-9331 ;552-9332 Fax No.: +63(83)552-9331

01

Republic of the Philippines House of Representatives OFFICIAL REPRESENTATIVE ARNULFO F. GO Second District, Province of Sultan Kudarat South 415, Batasan Complex, Quezon City

COMMITTEE MEMBERSHIP:

• Mindanao Affairs, Chairperson • Overseas Workers Welfare, Vice Chairperson • Agrarian Reform, Member of the Majority • Appropriations, Member of the Majority • Aquaculture and Fisheries Resources, Member of the Majority • Dangerous Drugs, Member of the Majority • Games and Amusements, Member of the Majority • Public Works and Highways, Member of the Majority

SHORTLIST OF HOUSE MEASURES SPONSORED/AUTHORED

• AN ACT APPROPRIATING THE AMOUNT OF ONE BILLION PESOS (PHP1,000,000,000.00) FOR THE OPERATIONAL REQUIREMENTS OF FISHERMEN MULTI-PURPOSE COOPERATIVES THROUGHOUT THE COUNTRY • AN ACT ESTABLISHING A FISHERIES AND AQUATIC RESOURCES CENTER IN THE MUNICIPALITY OF LEBAK, PROVINCE OF SULTAN KUDARAT, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES • AN ACT CREATING ONE CIRCUIT SHARI’A COURT IN THE MUNCIIPALITY OF KALAMANSIG, SECOND DISTRICT OF SULTAN KUDARAT • AN ACT GRANTING A PROMOTION OF ONE SALARY GRADE HIGHER TO ALL GOVERNMENT PERSONNEL UPON THEIR COMPULSORY RETIREMENT FROM THE SERVICE AND APPROPRIATING FUNDS THEREFOR • AN ACT NAMING THE PORTION OF THE NATIONAL ROAD CONNECTING ISULAN HIGHWAY JCT - DUKAY - BAGUMBAYAN - SENATOR NINOY AQUINO - KALAMANSIG, SULTAN KUDARAT, TRAVERSING THE MUNICIPALITY OF SENATOR NINOY AQUINO AS “PRESIDENT CORAZON AQUINO NATIONAL HIGHWAY”

02

SOUTHERN GEMS

Republic of the Philippines Province of Sultan Kudarat

Municipality of Lebak OFFICE OF THE MAYOR

It is an honor and rare privilege to give some thoughts on the scheduled occasion of the 1st Bangus Festival on August 15-16, 2012, to be held here in the Municipality of Lebak. This activity is a joint effort of DTI, 2nd Congressman District, BFAR, Provincial Government and the Local Government of Lebak.

message

The festival is a welcome endeavor, it will converge the various sectors that has interests in the Bangus industry, which I believe will boast the bangus culture in this areas of Lebak, Kalamansig and Palimbang and other coatal areas that has vast areas of fishponds and other made as areas for bangus culture.

It is worth reminiscing that years back where our municipality was noted as the bangus fry rich municipality likewise that of Kalamansig and Palimbang, fry catching was the major industry of these municipalities where it was a biggest local revenue earner then.

However due to human destruction of our coastal and marine resources, gradually the mother milkfish vanished and it was the reason that the industry died unnaturally.

Hopefully with this initiative of the organizers, bangus industry will be resurrected and its abundance will be restored with our joint effort of protection, preservation and implementation of marine and fishery laws and with the proper concern of all the sectors.

Let us save mother milkfish, implement fishery laws, go after dynamite fishermen, illegal fishing activities, protect marine and coastal resources. Save the bangus industry.

I thank the conveyor of this very noble undertaking, which is held in our municipality of peace and progress, and development. May this be the beginning of the new era of bangus industry in the coastal towns of Lebak, Kalamansig and Palimbang.

DIONESIO B. BESANA Municipal Mayor

Bangus Festival - Investment Forum

03

Republic of the Philippines House of Representatives

OFFICIAL REPRESENTATIVE RADEN C. SAKALURAN 1st District, Province of Sultan Kudarat South 414, Batasan Complex, Quezon City

COMMITTEE MEMBERSHIP:

• Muslim Affairs, Vice Chairperson • Agriculture and Food, Member for the Majority • Good Government and Public Accountability, Member for the Majority • Local Government, Member for the Majority • Mindanao Affairs, Member for the Majority • National Defense and Security, Member for the Majority • Poverty Alleviation, Member for the Majority • Public Information, Member for the Majority • Public Order and Safety, Member for the Majority • Rural Development, Member for the Majority • Social Services, Member for the Majority • Trade & Industry, Member for the Majority

SHORTLIST OF HOUSE MEASURES SPONSORED/AUTHORED

• AN ACT DECLARING NOVEMBER 22 OF EVERY YEAR AS A SPECIAL NON-WORKING HOLIDAY IN THE PROVINCE OF SULTAN KUDARAT” • AN ACT CONVERTING THE PROVINCIAL ROAD CONNECTING THE MUNICIPALITY OF DATU PAGLAS, PROVINCE OF MAGUINDANAO AND THE MUNICIPALITIES OF COLUMBIO AND LUTAYAN, PROVINCE OF SULTAN KUDARAT INTO A NATIONAL ROAD • AN ACT DECLARING THE 1) EDAY WATERFALLS, 2) DATABLAO FALLS, 3)FEKUNG BULA WATERFALLS, 4) PANES CAVE, IN AND ITS PREMISES LOCATED IN COLUMBIO, SULTAN KUDARAT, AS A TOURIST SPOT AND APPROPRIATING FUNDS THEREFOR • AN ACT ESTABLISHING FISH PROCESSING PLANTS IN ALL SUITABLE AREAS IN THE MUNICIPALITY OF LUTAYAN, PROVINCE OF SULTAN KUDARAT AND APPROPRIATING FUNDS THEREFORE • AN ACT CONVERTING THE SULTAN KUDARAT PROVINCIAL HOSPITAL INTO A TERTIARY HOSPITAL TO BE KNOWN AS THE CENTRAL MINDANAO REGIONAL HOSPITAL ATTACHED TO THE DEPARTMENT OF HEALTH AND APPROPRIATING FUNDS THEREFOR 04

SOUTHERN GEMS

Republic of the Philippines Province of Sultan Kudarat

Municipality of Kalamansig OFFICE OF THE MUNICIPAL MAYOR Tel. No. 064-204-6026/Telefax 064-204-6239 Official Website: www.kalamansig.gov.ph

message

My warmest congratulations to the Local Government Unit of Lebak for hosting the 1st Sultan Kudarat Bangus Festival!

This momentous event marks the commencement of our journey towards attaining a vision of a well-developed and vibrant Bangus Industry in the province of Sultan Kudarat. As neighboring municipalities, Lebak and Kalamansig share common and intertwined development goals that can be best realized through viable partnership and cooperation. One of these is the development of Bangus Industry in these two coastal municipalities. While Lebak has wide expanse of area available for freshwater production, we have on our part Kalamansig Bay which is very suitable for fishcage production.

We have these natural endowments which are just waiting to be tapped and can serve as our competitive advantage vis-Ă -vis other areas. What we only need is to make Bangus Industry one of our priorities in our development agenda in a manner that is sustainable in terms of support from both government and non-government organizations. With the strong commitment of all stakeholders to dedicate their time and resources to this endeavor, there is no doubt that the coastal municipalities of Lebak and Kalamansig will become future industry leaders in Mindanao.

Mabuhay po tayong lahat!

ROLANDO P. GARCIA Municipal Mayor

Bangus Festival - Investment Forum

05

06

SOUTHERN GEMS

Sultan Kudarat Fish Farmer’s Association

(L eSb aKk , FS u Fl t a An K)u d a r a t

message

Isang mapagpala at matagumpay na araw sa ating lahat. Ang Bangus Festival ay napakahalaga para sa aming maliliit na mangingisda, dahil ito ang daan upang lalo pa naming pangalagaan at maintindihan ang maidudulot ng bangus sa aming palaisdaan.

Sa tamang pag-aalaga, teknolohiya, nutrisyo at maipagbibili sa tamang halaga na ibabahagi ng mga dalubhasa sa larangan ng pangingisda ay sapat na ito upang aming magagamit ang mga kaalamang iyon na maiangat at maitaas ang produksiyon n gaming bangus sa darating na mga panahon.

Kaya kami ay umaasa n asana hindi ito ang una at huli nating pagtitipon na mangingisda. Ito na ang pagkakataon upang mabigyan pansin ang maliit na mangingisda dito sa bayan ng Lebak.

Kami ay lubos na nagpapasalamat sa mga tao at ahensiya n gating pamahalaan; Bureau of Fisheries and Aquatic Resources (BFAR), Local Government Unit (LGU) ng Lebak, Department of Trade and Industry (DTI) at pribadong organisasyon na tumulong upang magtagumpay ang kauna-unahang Bangus Festival sa aming bayan.

Maraming Salamat.

JERMIN DELA CRUZ President

Bangus Festival - Investment Forum

07

OPENING CEREMONY 7:30 Arrival and Registration 9:00 Opening of 1st Bangus Festival Invocation/Doxology Phil. National Anthem/Lebak Hymn LGU - Lebak Opening Remarks MS. LAILA EMPERWA BFAR—12 Acknowledgment of Guests/Participants MS. NENITA FRIAS Mun, Agriculturist, Lebak Welcome Remarks HON. DIONESIO BESANA Mayor, Lebak Overview of Bangus Festival NELLY NITA N. DILLERA CESO V Provincial Director, DTI-SK Intermission LGU - Lebak Messages CONGRESSMAN ARNULFO GO 2nd District of Sultan Kudarat HON. DATU SUHARTO T. MANGUDADATU, AL HADJ Governor, Sultan Kudarat BGEN. ALEXANDER F. BALUTAN, PN (M) Intermission c/o MAS - Lebak Introduction of the Keynote Speaker MR. AMBUTONG PAUTONG Regional Director, BFAR 12 Keynote Speech ATTY. ASIS PEREZ Director, BFAR Induction of Sultan Kudarat Fish Farmers Association Formal Declaration of the 1st Bangus Festival HON. DIONESIO BESANA Municipal Mayor, Lebak 12:00 Lunch/ Company Presentation MR. DIOMEDE C. BUCOG Tateh Feeds

08

SOUTHERN GEMS

PLENARY 1: BANGUS INDUSTRY SITUATION AND MARKET OPPORTUNITIES 1:00 Bangus Value Chain & Export Market Opportunities MR. ALBIN GANCHERO Marine/ Seafood Exports Product Officer DTI- Bureau of Export Trade Promotion 1:30 Overview of the Bangus Industry DR. EVELYN GRACE AYSON Head, Training & Info Div., SEAFDEC 2:00 Bangus Industry Situation/Direction in R12 MR. AMBUTONG PAUTONG Regional Director, BFAR 12 2:30 OPEN FORUM Plenary 2 : Business Opportunities and Technology Updates 3:00 Business Opportunities in Fingerlings Production MR. ROLDAN ADAYA

FinFish Hatcheries, Inc. 3:30 Pond Mgt.t & Growing Bangus Using Commercial MR. RAMON MACARAEG or Supplemental Feeds: Pros and Cons Research and Devt. Manager Alsons Acquaculture 4:00 Post Harvest Handling Technology Mr. Alson’s Aquaculture 4:30 OPEN FORUM 5:00 Company Presentation ONE NETWORK BANK 5:30 Company Presentation MR. GIOVANNI PAGE BMeg 6:30 Welcome Dinner, Cultural Presentations LGU Lebak/SKSU

PLENARY 3: DOMESTIC MARKET REQUIREMENTS AND SUPPORT PROGRAMS 8:00 Recapitulation FELISA A. SINOBAGO, DTI-SK 8:15 Market Requirements of Fresh/Processed Bangus MARELLE U. VILLA Quality Assurance Supt Malalag Bay Processing Bangus Festival - Investment Forum

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9:15 Government Support Programs BFAR DTI SKSU DOST LGU-LEBAK 11:15 Open Forum 12:00 Lunch/company Presentation ONE NETWORK BANK CLOSING PROGRAM 1:30 Presentation of Congress Resolution MR. GERWIN DELA CRUZ President, SK Fish Farmers Assn.

2:00 Signing of Growership/Marketing Contract 2:15 Congress Messages CONGRESSMAN ARNULFO GO 2nd District SK 2:30 Closing Remarks HON. ROLANDO GARCIA Mayor, Kalamansig, Sultan Kudarat 3:00 Tour LEBAK AND KALAMANSIG TOURISM SKILLS AND PRODUCT COMPETITIONS (August 16, pm)

- Bangus Culinary Competition DTI - SK

- Bangus “Pinaka” Contest LGU - Lebak

- Bangus Fastest Deboner SK Fisherfolks Association

TECHNOLOGY TRAINING (August 15)

- Training on Fish Cracker Production SKSU—Kalamansig

- Training on Fish Polvoron Production SKSU—Kalamansig

- Training on Patis Making BFAR — 12

SEMINARS (August 14, pm)

- Product Development Services DTI-SK

(branding, packaging and labeling)

- Good Manufacturing Practices DTI - SK

10

SOUTHERN GEMS

Sultan Kudarat

Fish Farmers Association President : JERMIN DELA CRUZ Vice President : VALENTINO GALLUDO

BRUNO FRANCISCO

ROMULO MURPHY Secretary : CELIA ARGUELLES Treasurer : TEDDY CASTANEDA Business Manager : TORTILDO TOLEDO LYDIO SANGACINA RANDY ORGO Liaison Officer : BUENAFE M. OLARTE Board of Director : VICKY TOLEDO GENE LADIAO LEONARDO CASTROMAYOR

Bangus Festival - Investment Forum

11

Sultan Kudarat Quick Facts

T

he name Sultan Kudarat given to the province was derived from a Muslim ruler, the late Sultan Mohammed Dipatuan Kudarat who begun to assert his leadership in the year 1619 and reigned the Sultanate of Maguindanao from January 1625 to 1671 A.D. He was a virtuous leader who embodied the idea of basic unity, oneness and freedom among the diverse people scattered throughout its Sultanate. For this reason, he was considered as one of the National heroes of our country and for his honour

this province was named after (SOCCSKSARGEN), along with the provinces of South him.

Cotabato, Cotabato and Sarangani. Isulan is the Location, Land town of the province Area and Political capital which is approximately 43 Subdivisions kilometers from Koronadal City, the regional center; Sultan Kudarat is located 195 kilometers from Davao in the southwestern part of Mindanao. It is bounded on City and 114 kilometers from the north by the provinces of General Santos city.

Maguindanao and Cotabato, The province is composed in the east by Davao del Sur of 11 municipalities and one while in the south by the city; and is divided into two provinces of South Cotabato congressional districts. It has and Sarangani and the a total of 249 barangays.

Celebes Sea in the west.

Tacurong City and the capital It is one of the four provinces town Isulan and Lebak are classified as large towns. comprising Region XII

Sultan Kudarat Q uick Fac ts

Pertinent Information Location

North-western portion of Region 12

Capital

Isulan

Component Areas

11 towns, 249 barangays, 2 districts

City

Tacurong, Component, Fourth Class

Land Area

5,135 sq.m. (2nd largest in Region 12)

Soil Type

Sandy Loam, Clay Loam, Loamy Sand, Silty Clay Loam

Climate

Type B (suitable rainshowers)

Topography

Flat and undulating; to rolling and mountainous

Coastline facing Celebes Sea

180 kilometers (Palimbang, Kalamansig and Lebak)

Major Rivers

Eight (8) used for irrigation and agriculture; 146 springs

Mineral Resources

Copper, Gold, Silver at Daguma Mountain Range

Non-Metallic Minerals

Sand, Gravel, Marbleized Limestone

Land Suitability

Cultivated Crops (167 T ha.)’ Industrial Crops (8T has.); Pasture (17 T has.); Shrublands/Under utilized (42T has); Production Forests (129t has); brackishwater ponds and mangroves (3 T has.)

Population (2007); Growth Rate

677,062; Growth Rate: 2%;

Population Density

132 per square kilometres

Major Dialects

Ilonggo (41%); Maguindanao (21%); Ilocano (15%)

Literacy Rate

83.96%

Educational Facilities

Sultan Kudarat State University, ____ other colleges and tech voc schools

Health Facilities

23 government and private hospitals including a Mobile Hospital; 198 Bgy Health Stations

Land Transportation

2 Integrated Land Transport Terminals in Isulan and Tacurong City plying routes to Cotabato City, Koronadal – General Santos City; Makilala – Davao City; Kabacan- Cagayan de Oro City and the newly concreted Cotabato-Lebak road

Air and Sea Transport

Awang (Cotabato) Airport/Polloc Port; Gensan Airport /Seaport & Davao Airport/Seaport

Water System

Five (5) Operating Level III : Water Districts – Sultan Kudarat, Lebak, Kalamansig, Bagumbayan and BAWASA,

Power Distributor, Source

Sultan Kudarat Electric Coop; Mindanao Grid (721.1 MW) 4.046 MW for Sen. Ninoy Aquino, Lebak. Kalamansig, Palimbang

Telecommunications Facilities

PLDT, SKTSI, Smart, Globe, Sun, 4 radio stations, 3 cable stations,

Financial Institutions

15 banks

Tourism

Provincial Capitol, Baras Bird Sanctuary, Margues Hot & Cold Spring,

Industrial Tourism

Kenram (Palm Oil Processing) Industrial Dev’t. Inc, Muscovado Processing Plants, Coffee Plantation and Processing Plant Information Communication– Business Process Outsourcing Firms, Fish Processing Plant, Craft and Soap Production Area

Priority Industries

Coffee, Oil Palm, Banana, Coconut, Rubber, Fishery, ICT-BPO, Tourism, Craft, Mango, Fruits

Photo by: Jing Velos

Existing Industries/ Enterprises: To add value to these raw materials, industry cluster teams have assisted entrepreneurs to develop products. Among these are muscovado sugar, roasted/ ground coffee, crude palm oil, banana chips, coco sweetener, vinegar from sugarcane, kalakat from oil palm fronds, bamboocraft and huts, rice hull briquettes, and various craft items using corn husk, water hyacinth, abaca and pandan.

Fruits like calamansi, passion fruit and mangoes are aplenty and have been processed intro concentrated or ready to drink thirst quenchers.

The coastal towns of Lebak, Kalamansig and Palimbang are known for dried fish, marinated bangus, prawns, crabs that are considered to be the most delicious in Mindanao, based on research. The mountain parts of these areas are thriving with coffee, rubber and tropical fruits.

14 

SOUTHERN GEMS

Pancake Chamber, Lagbasan Cave, SNA, Sultan Kudarat

Sultan Kudarat is a major producer of a number of agricultural products as reflected on the table.

Top Agricultural Products (in Metric Tons) Source: Countrystat.bas.gov.ph Palay

393,075.00 (2nd in Region 12)

Corn

202,038.00 (3rd in Region 12

Coconut

158,521.95 (3rd in Region 12)

Oil Palm

70,955.17 (1st in Region 12)

Sugarcane

64,024.60 (3rd in Region 12)

Banana

31,651.28 (4th in Region 12)

Coffee

22,410.74 (1st in Region 12/Phil.)

Rubber

261.58 (3rd in Region 12)

Sultan Kudarat Q uick Fac ts

Sultan Kudarat Priority Industries and Investment Opportunities

corn husk, pandan, oil palm fronds, banana fiber 8. Bangus – Bangus Fishpond Development, Marinated/Deboned Bangus; Cold Storage Facilities, Fish The province of Sultan Kudarat and Processing Plant Tacurong City have existing Local Investments and Incentives Code that 9. Fruits – Processing into juice/concentrate facilitates the requirements of potential of calamansi, passion fruit or mango investors in the province/city. The priority 10. Bamboo – Engineered Bamboo like floor areas are: tiles, mouldings; bamboo furniture 1. Coffee : Nursery for Seedling, Coffee 11.

Business Process Outsourcing - BPO Plantation, Post Harvest Facilities, Training Center for Contact Center, Coffee Roasting, Coffee Vending/Shop Transcription, Financial and Accounting Operation Services, Computer-Aided Engineering & 2. Oil Palm : Oil Palm Plantation, Small Scale Architectural Designs Palm Oil Processing 12. Pangasius – Pond Development, 3. Banana: Banana Plantation, Banana Pangasius Fillet and other value added Chips Processing, Banana Catsup products Production 13. Rice/Corn - Certified Seed Production, 4. Rubber: Nursery Establishment, Crepe Rice Hull Charcoal Briquettes, RiceRubber Processing Plant, Rubber Based Processed Food, Feedmill using Plantation corn 5. Sugarcane: Sugarcane Plantation, 14. Establishment of Commercial Buildings Muscovado Processing Plant 15. Tourism Development – Caves in SNA, 6. Coconut: Coco sugar and Coco Coir Hot and Cold Spring in Esperanza, Beaches in Kalamansig, Bird Sanctuary 7. Craft: Abaca Processing/Weaving, in Tacurong City; Tour Guiding Facilities Production of Novelty Items/Housewares/ for scenic and industrial destinations Wearables using abaca, water hyacinth, Photo by: Jing Velos

phot o: oc eana.org

Bangus Life History and Habitat • Milkfish eggs float and are pelagic since spawning of wild adults is thought to occur in the open sea. Fertilized milkfish eggs are spherical and measure from 1.10 to 1.25 mm in diameter. Oil globules are lacking and the chorion appears granular with a fine segmentation pattern. The yolk has a light yellow tinge. A very narrow perivitelline space is present.

• Incubation periods until hatching vary from 20 to 25 hours after fertilization at 26 to 32°C and 29 to 34 ppt salinity. Naturally-spawned eggs occur at depths of 10–20 m near the shorelines of small islands as observed in Panay islands. Eggs float at 34 ppt and tend to sink at salinities of less than 30 ppt.

• A newly-hatched milkfish larvae measures 3.5 mm total length. It has a large yolk sac (0.5 ul volume) and its eyes are not pigmented. Having no functional mouth, the larvae depends entirely on its yolk until five days after hatching. It grows slowly during the initial five days after hatching.

• Milkfish larvae undergo several phases of development before transforming into juvenile fish. These stages are largely based on the distinct morphological and behavioral traits during larval development. Milkfish larval development lasts from two to four weeks. Kumagai (1981) • Milkfish eggs and larvae are part of the marine plankton community. Younger larvae tended to occur both far and near shore but older larvae only near shore. In addition, a greater number of younger larvae occur at 500 m offshore in water 30 m deep a few days before the new and full moon periods, while more milkfish fry occur onshore in the days following these lunar periods. This phenomena suggests a shoreward movement accompanying growth of milkfish larvae.

• The shoreward movement of older milkfish larvae has been the basis for the existence of the milkfish industry in Southeast Asia. The size of shore-caught fry fall within a narrow range of 10 to17 mm total length. More fry are caught between the full and new moon periods, suggesting either a passive or an active mode of migration from the spawning offshore (Kumagai, 1981).

• Milkfish juveniles larger than 20 mm have the characteristic shape and morphology 16

SOUTHERN GEMS

of the adult of the species. Fin-ray complements are complete, the caudal fin becomes forked and scales attain a silvery coloration. Juveniles are abundant in protected, shallow waters (lagoons, mangroves, marsh flats and estuaries) having an abundance of food deposits (Buri, 1980; Kumagai and Bagarinao, 1981). They seek brackish water coastal wetland habitats with an abundant food supply. Off the eastern coast of Panay Island, Philippines, milkfish fry were observed to enter a mangrove lagoon fortnightly with the high tides of spring tide periods where they grow into juveniles before leaving the area with the high tides (Kumagai et al., 1985). In natural nursery grounds where food is not a limiting factor, the habitat area, depth and connection with the sea apparently determine the maximum size and duration of stay of juvenile milkfish.

• Being swift and powerful swimmers, adult milkfish (50 to150 cm total length) are rarely seen in the open sea. Most adults are caught during the breeding season when they migrate in small schools along the coastline to spawn. Except in southern Mexico, there is no existing fishery for adult milkfish.

• Although information on the whereabouts of milkfish during the period from the time juveniles leave their nursery grounds to the time they are caught as sexually mature adults along coastlines is lacking, it is thought that some spend their growing periods until adulthood in freshwater lakes with extensions to the sea. For instance, Lake Naujan and Lake Taal in the Philippines were well-known habits of adult milkfish with annual catches by the thousands several decades ago. Apparently, milkfish migrate to and from the lake year-round with peak migrations occurring in November and December (Reyes, 1978). Milkfish leaving the lake are sexually immature and apparently undergo a short period of gonadal maturation at sea where they spawn.

Food and Feeding Habits • Adult and juvenile milkfish have a small toothless mouth, fine closely laid gill rakers and a pair of muscular raker-lined epibranchial organs. The long esophagus is thick-walled and has about 20 to 22 spiral folds and many mucus cells. The stomach is quite large with gastric glands concentrated in the cardiac part. Lacking gastric glands, a gizzard functions in trituration of coarse food materials.

Numerous pyloric caeca cluster behind the gizzard. The intestine is convoluted and extremely long (Chandy and George, 1968; Kinoshita, 1981). Thus,

the morphology of the digestive system indicates that milkfish are “herbivores with generalist tendencies.” Milkfish larvae are particulate visual feeders (i.e., they snap up prey individually and swallow them whole).

• Milkfish fry from shore waters feed mainly on copepods and diatoms. When caught, fry exhibit empty guts, but are energetic and far from starving. It has been observed that copepods are ingested head on, indicating that wild fry run against (not after) any copepods Bangus Festival - Investment Forum

17

cont. Food and Feeding Habits

encountered (Buri, 1980; Kinoshita, 1981). Depending on the size of the mouth of the fry and prey size, their guts can accommodate more than one copepod at a time.

• Milkfish juveniles take food mainly from the substrate. They ingest the surface layer of the substrate together with the associated micro-and meiofauna (Blaber, 1980). The kinds of food ingested vary by habitat and by fish size. Juveniles from natural habitats commonly take in bluegreen algae, diatoms, detritus, filamentous green algae, copepods and nematodes. The food items of milkfish grown in culture ponds are similar to those of natural nursery grounds. Pond-reared milkfish feed mainly on either lablab (a complex mat of bluegreen algae, diatoms and associated invertebrates) or lumut (mainly filamentous green algae). Milkfish grow better on lablab than on lumut.

• Like the fry, milkfish juveniles also exhibit a distinct feeding periodicity. Feeding activity peaks at midday and in the afternoon (Kumagai et al., 1985) when dissolved oxygen, water temperature and digestive enzyme activity are highest (Chiu et al., 1986). More algae are

ingested during the daytime; however, at night, milkfish ingest more animal food, reflecting the diurnal changes in the availability of food organisms.

• Wild adult milkfish feed mainly on zooplankton, larval and juvenile clupeiods with one or two dominant food types in one gut, indicating that adult milkfish feed by swimming through plankton masses and fish schools. Planktonic and benthic organisms may also occur in milkfish guts. Therefore, adult milkfish may be considered opportunistic generalists which, depending on the prevailing circumstances, may filter feed, graze or snap up small prey.

Growth • The growth curve of milkfish larvae is sigmoid (Liao et al., 1979). Based on the size frequency distribution of shore-caught fry from the northwestern coast of Panay Island, Philippines, fry grow at a rate of 0.5 mm per day. Using a line equation to estimate the age and growth of milkfish fry, it is estimated that shore-caught fry with a mean total length of 13.5 mm are about three weeks old from spawning while small ones of a mean total length of 10 mm are two weeks old (Kumagai and Bagarinao, unpublished data).

18

SOUTHERN GEMS

Bangus Life History and Habitat

• Some reports have found that hatchery-bred and reared milkfish fry are generally heavier and morphologically more advanced (heavy pigmentation, pelvic fins present) than shore-caught fry of similar length (Liao et al., 1979). On the contrary, Taki et al. (1986) found no differences in osteological development of wild and hatchery-reared fry in the 11 to 12 mm size range. Baliao et al. (1980) also observed no significant differences in the growth and survival of wild and hatchery-reared fry in brackish water nursery ponds.

• Growth rates of wild and pond-reared juvenile milkfish vary from 7.0 to 8.7 mm weekly (Kumagai et al., 1985). However, growth rates in ponds and in pens vary considerably depending on initial fish size, food, stocking density, climate, season, locality, water turnover rate, pond area and depth, pests and predators (Schuster, 1960, Juliano et al., 1970).

Reproduction • There are no distinct morphological variations between milkfish of opposite sex, especially among sexually immature adults and juveniles. However, Chaudhuri et al. (1976) noted three openings in the anal region of mature female milkfish.

Sexually mature males possess only two openings although virgin females maturing for the first time may also have two distinct pores in the anal region.

• Although it is not clear whether first sexual maturation is related to age or size (Lam, 1984), milkfish reared in sea cages in the Philippines attain their first reproductive event at the age of five years (Marte and Lacanilao, 1986). Some males, however, undergo precocious maturation at four years of age.

• Milkfish is a highly fecund species.

Mature ovaries usually comprise around 10 to 15 percent (15%) of the body weight of the spawner. Fecundity estimates of 0.3 to one million eggs per kg body weight have been reported (Schuster, 1960; Marte and Lacanilao, 1986).

• As in other fish species, the spawning cycle of milkfish is seasonal and varies in different localities. Based on the annual occurrence patterns of milkfish fry, the breeding season of milkfish is long near the equator and becomes progressively shorter with a single peak at higher latitudes in the northern hemisphere (Kumagai, 1984). The length of the spawning season in various localities may photo: panda.org

cont. Bangus Life History & Habitat

be a consequence of elevated seawater surface temperatures (Wainright, 1982).

• Although milkfish spawning has never been observed and documented in the wild, there are indications that they spawn around midnight. This observation was

largely derived from the developmental stages of milkfish eggs collected by plankton tows (Kumagai, 1981) and by the collection of naturally-spawned eggs in sea cages (Marte and Lacanilao, 1986) and in ponds (Lin, 1985).

Tolerance to Environmental Conditions • The success of milkfish as a cultured food fish species may be attributed to its ability to tolerate extremes of environmental conditions. These conditions include extremes of temperature, salinity, dissolved oxygen, ammonia, nitrite, crowding and starvation. Their adaptability to these factors have allowed milkfish culturists to exploit the species by manipulating culture conditions. Most studies on this aspect have been concentrated largely on milkfish fry and juveniles.

• Low temperature (23°C) decreases survival, activity, food intake, and growth and development of milkfish fry and juveniles; high temperatures (up to 33°C) have the opposite effect (Villaluz and Unggui, 1983). Lethal temperatures for juveniles are 42.7°C and 8.5°C (Lin, 1969) although their tolerance limits vary with acclimation temperature.

• Milkfish fry and juveniles can tolerate crowded conditions. With just enough food for body maintenance, milkfish juveniles can be kept crowded and stunted in nursery ponds for several months. Good growth, which is not significantly different from non-stunted fish, is achieved once stunted fish are fed and more space becomes available. This technique is a traditional farm practice among milkfish growers in the Philippines when seed stocks are abundant and prices are low (Lijauco et al., 1978).

Nursery • In the Philippines, milkfish nursery operations are practiced both as an integral part of the milkfish culture system and as a profit-center operation for nursery operators.

20

SOUTHERN GEMS

pho to: o ceana.o rg

• While milkfish fry can tolerate abrupt transfer from full-strength seawater to freshwater, early juveniles would die (Juliano and Rabanal, 1963). However, milkfish juveniles can also tolerate a wide range of salinity (7.8 to 108.6 ppt; Lin, 1969), with larger fish more efficient at handling osmotic stress than smaller ones (Ferraris et al., 1983).

Milkfish Production in the Philippines

MilkfishBy Production in the Region (inPhilippines metric tons), 2008-2009

By Region (in metric tons), 2008-2009

REGIONS National Capital Region Ilocos Region Cagayan Valley Central Luzon Calabarzon Mimaropa Bicol Region Western Visayas Central Visayas Eastern Visayas Zamboanga Peninsula Northern Mindanao Davao Region Soccsksargen Autonomous Region in Muslim Mindanao Caraga PHILIPPINES

2008

2009P

% Change

Rank (2009)

2,377.91 81,653.92 909.67 62,457.49 47,991.20 4,375.49 2,543.59 69,005.49 7,187.74 12,278.15 9,832.39 10,563.77 17,985.30 15,095.92 3,256.25

1,594.29 68,891.29 747.47 61,392.36 44,682.94 3,832.34 3,812.61 77,190.37 7,345.24 12,020.86 11,445.65 11,739.89 22,143.42 14,878.57 3,594.85

-32.95 -15.63 -17.83 -1.71 -6.89 -12.41 49.89 11.86 2.19 -2.1 16.41 11.13 23.12 -1.44 10.4

15 2 16 3 4 11 12 1 10 7 9 8 5 6 13

3,322.69 350,836.97

2,275.36 347,587.52

-31.52 -0.93

14

Source: DTI - NERBAC 12

Bangus Festival - Investment Forum

21

Economics of Bangus Production Culture of milkfish in marine cages is intensive, characterized by a small area, high levels of inputs like fingerlings and feeds, which result to high yields. Milkfish farmers in the Philippines are finding it advantageous to culture fish in mariculture parks. Milkfish can be cultured in bamboo cages or polyethylene round cages. Milkfish grown in polyethelene requires a much larger investment but the use of polyethylene is much durable and provides higher yield. Below is the graph and pie showing the distribution and percentage of cost requirement in bangus production in sea cages using either bamboo or High Density Polyethylene.

Milkfish Production in Bamboo Cage 180 cu. m.

2%

3%

Milkfish Production in Round Cage (Polyethylene) 2%

21%

3%

21%

8%

8%

66%

Cage

Fingerlings

Feeds

66%

Direct Labor

Operating Expenses

Cage

Fingerlings

Feeds

Direct Labor

Operating Expenses

Figure 4. Comparative cost requirement for bangus sea cages using bamboo (125 cu m) and high density polyethylene (HDP) (640 cum)

Milkfish Market

Milkfish is one of the most consumed species in the country. Most of the total demand of milkfish goes to the domestic market, particularly, to household consumption. Local consumers still prefer milkfish to be as fresh 22 

SOUTHERN GEMS

as possible. Value adding like deboning has become attractive to more local consumers.

Meanwhile, the other value added forms are becoming available in urban centers such as Davao, Gen. Santos and Manila.

The main markets of processed milkfish are Filipino and Asian communities abroad especially in the US and Canada. Export demand has been growing over the past years, indicating an increase in the number of Asians migrating to these countries.

The marketing of milkfish is composed of producers, traders, exporters, processors, institutional buyers and household consumers.

1. Production Level Milkfish producers are generally marketoriented and sell most of their produced.

The small-scale operations are usually family business. Large-scale operations are personally manage by the owners or assigned caretakers to oversee the farm operation. In corporate farms, technicians, laborers, secretaries, housekeepers, divers and security guards are employed.

Big corporations and private companies produce their own fry and supply fingerlings to grow-out operators and own plant to process their produced.

Producers of milkfish do not usually sell fish directly to consumers, but supply them through cooperatives, brokers, dealers, collectors or wholesalers, and retailers. In general, the majority of fish products are sold in auction markets through dealers, brokers, wholesalers or cooperatives to smaller dealers, and then retailers.

2. Assembly and Distribution Level Marketing participants in this level are referred to as either traders or exporters.

There are four types of traders from production to consumption. These are broker, viajero, wholesaler-retailer and retailer.

a. The brokers perform important facilitating functions such as selling, pricing, and moving around to satisfy demand needs while. They handle the large share of the local market for milkfish, consolidates milkfish products and deliver these to wholesalers or viajeros. They use jeepney, bus or truck to transport fish to market. The broker then sells to wholesalers at a margin of ten percent (10%). b. Viajeros have the financial and logistical capability to procure milkfish from producers and traders within and outside the supply areas. Viajeros deliver the chilled milkfish in retailers in supermarkets/wet markets and public markets. Gets 15% sales margin. c. Wholesaler-retailers usually concentrate in public markets and procure milkfish from deliveries of viajeros or brokers; and selling in small quantities to retailers or institutional buyers. Wholesalers distribute to “viajeros� (travellers). Gets 15% sales margin. d. Retailers obtain milkfish from viajeros or wholesaler-retailers, such as supermarkets, deli shops and specialty fish stores in urban centers.

3. Processing Level Processors are corporations that manufacture value added milkfish Bangus Festival - Investment Forum

23

cont. Economics of Bangus Production products such as fresh deboned, smoked deboned, bottled and canned milkfish and marinated milkfish for sale in the domestic and export markets. Processing milkfish products for exports has to deal with standards to penetrate foreign markets thru an accreditation program supported with processes complying to Good Manufacturing Practices and Sanitation Standard (GMPSS) Operating Procedure and Hazard Analysis and Critical Control Points (HACCP).

Processors absorb some of the marketable supply of milkfish from brokers. Integrated companies like Alson’s Aquaculture Corp. process their produce and market it under the brand name Sarangani Bay. Value-added products of milkfish are usually exported.

Retailers sold the fresh, chilled and processed milkfish to consumers. Some volumes are also supplied to local retailers - supermarkets and fish shops/stores and institutional buyers by the fish dealers.

In the case of a large milkfish producer/ processor, processed milkfish is supplied directly to institutional buyers.

3. Consumption Level Restaurants are the main institutional buyers. Processed milkfish are commonly bought by restaurants which cater mostly to middle-income group. On the other hand, household consumers buy mostly fresh or chilled milkfish from wet markets or supermarkets.

Figure 5. Milkfish Marketing Flow PROCESSOR/ EXPORTER

24 

Mode of payment: Cash or Credit/ consignment

Capital: self-finance or thru bank loans

Business Types: Single Proprietorship, Cooperatives/ Associations

PRODUCER

SOUTHERN GEMS

ASSEMBLER / DISTRIBUTOR

BROKER

COMMISSION AGENTS

PROCESSOR

VIAJERO

WHOLESALERRETAILER

RETAILER INSTITUTIONAL BUYER

HOUSEHOLD

RESTAURANTS

Economics of Bangus Produc tion

Manila is the biggest market for aquaculture products.

A high percentage of products from the three major island areas of Luzon, Visayas and Mindanao are channelled to traders who control the volume of milkfish being traded as well as who can do trading in the market (Navotas

market). In the process, substantial trading within the same level of the marketing channel takes place, especially among brokers, wholesalers and retailers, resulting in higher landed prices of aquatic products, putting fish products beyond the reach of urban poor consumers,

even those in Manila. In the case of milkfish delivered from Mindanao, producers find it difficult to land milkfish in Navotas market due to “protection” of some traders. Outside traders need to have a “contact trader” and to pay a certain amount to enable them to trade in Navotas.

p hoto: blo g. yuh ico.com

Source: DTI - NERBAC 12

p hoto: b log.yuhic o.c om

Site Selection The following should be considered in selecting a site for the cage culture of milkfish: • Free from pollution • Protected from adverse weather condition • Accessible but secured from poachers • Should be at least 12-15 meters deep • Far from seagrass and coral beds

Cage Design and Construction

• Net squares or rectangles measuring 10 x 10 m with a depth of 6 m

• Frames made of bamboo, lumber, GI or HDPE pipes • Floats made of styrofoam, empty plastic containers • Mooring made of cement blocks, GI pegs or anchors • Sea cage may be arranged in quadrant or in cluster

Source: SEAFDEC Aquaculture Department, Tigbauan, Iloilo, Philippines. “Milkfish Culture in Sea Cages”, April 2009. Published

Milkfish Farming inFarming Pens and in Cages Milkfish in Pens or In Cages (Source: BFAR – 12) TYPE OF CAGE

STOCKING DENSITY,

FEEDS & FEEDING

SURVIVAL & PRODUCTION

Fishpen ® Square or rectangular

® Usually between 5 – 20/m

2

® Large amount of feeds needed everyday ® Amount of feeds depends on the no. to be stocks – for every 1,000 pcs – at least 250g milkfish ® The more feeds are given, the faster the growth.

® Bamboo poles or polyethylene 2

® Sizes range from 500 m (25m x 20m) to 1 has (100m x 100 m)

Floating Cages ® Square or rectangular cages ® Made of polyethylene netting attached to wooden bamboo or GI pipe frames ® Styrofoam or plastic drums

® Stock is between 10 to 30 fish/m

3

® Concerts m3

® Size ranges from 27 (3m x 3m x 3m) to 3 1,800 m (15m x 20m x 6m)

Stationary Cage ® Anchored and supported at the sides and its corners by wooden or bamboo poles 3 ® Size ranges from 600 m (10m x 20m by 3 3m) t 6,000m (20m x 50m x 6m)

26

SOUTHERN GEMS

® Total stocking is 10 – 30 fish/m

3

Source: BFAR - 12

SWOT ANALYSIS A.Strength 1.Improving product quality •Processing establishments now are learning to comply HACCP requirements through the provision of trainings and technical assistance as well as in the establishment of product traceability from the farm to plate.

balance of trade for Philippine fisheries, it is imperative that the country’s export of fishery products comply with the requirement of international management organizations and international markets including Illegal, Unreported and unregulated or IUU Fishing and Sanitary and Phyto-Sanitary Procedures.

•Local producers are also being capacitated to pass the stringent standards on health and requirements on production, processing, marketing and trade. Processors may consider organic certification schemes.

3.Climatic change. The impacts of climate change in the fisheries sector is increasingly felt in many areas that traditionally has never experience it. The vulnerability of this sector in this regard is so high, that losses are not confined to collateral damages but more significantly to losses in terms of fishermen’s lives.

B.Weaknesses

C.Opportunities

1. Global economic crisis. The global economic crisis has affected milkfish export demand –many of the major international markets reduced their order and others are closing down. The crisis also increased cost of fuel and other energy inputs such as electricity and water, entailing high production costs.

1.Product quality and safety in the Export Market. US remains as the main market of Philippine Bangus products and EU and Arab countries continue to be potential markets for bangus exports. EU imposes stringent regulations on the trade of fish and fishery products, limiting the number of qualified and accredited suppliers from the Philippines. Still, our suppliers 2.New global trading order. Global market can qualify for accreditation by meeting are becoming more demanding with EU food quality and safety standards regard to product safety, are environmentstarting at the farm level, all the way to conscious and demanding of social equity fish plant inspection, monitoring and in the over all production cycle; subjecting accreditation; technical assistance and international fish trade to more stringent advisory services; hazards analysis of requirements. critical control points; and training and To be able to maintain the favourable skills development.

Bangus Festival - Investment Forum

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SWOT ANALYSIS 2.Organic Bangus Production. With the issue on climate change, more consumers are willing to pay a premium on ecolabeled products. This presents opportunities for organic bangus production in the country. The trend in consumers demand gives preference on fish products from sustainable environment-friendly sources if labelled accordingly.

D. Threats 1. Shift in High Value Fish Production Milkfish culture area may decline because the shift of land use to other high value aquatic animals, but total milkfish production will remain able to meet the market demand through the improvement in production technology.

This has been demonstrated in Taiwan, where their traditional shallow-water culture system continues to provide affordable animal protein source to the general public.

3.Growership Scheme. Philippines find difficulty in competing with Taiwan, who has afforded technology in production.

Still, milkfish will continue to be one of the favored aquatic products in the country.

Low market price of bangus makes Enhancing high-value fish production. its production to local growers not It’s getting difficult competing with competitive. This could be addressed Taiwan in terms of milkfish production, by expanding its market by developing considering Taiwan’s low cost milkfish. new marketing strategies to open up new Further, the rising prices of inputs and markets, e.g, bait for the tuna industry. production of bangus, prompted large scale growers to consider alternative species are considered to maximize 2. Negative Impacts of fish cages in profitability and food security, such as mariculture parks. the farming of commercially important species such as lapu-lapu, pompano, Intensive rearing of milkfish in cages snapper, abalone, blue crabs, and uses a much higher amount of input lobsters, among others. Thus, to sustain like feeds. Feeds that are not eaten or milkfish production, large companies like digested properly, plus other waste Alson’s will undertake growing scheme, products go into the water and some which will open business opportunities to will eventually settle onto the sediment Filipino growers of bangus. In response to bottom and may cause marine and this concern, large companies like Alsons sediment pollution. It is therefore Aquaculture Corp. plan to implement necessary to monitor the water and growership scheme for bangus, while they sediment quality around the fish cages. allocate their available areas to high value The operator could also check the fish products like pompano, lapu-lapu, feeding regime, avoid overfeeding abalone, siganids, among others. The of stocks, and use only good quality scheme means opportunities for growers formulated feeds to help reduce wastes. who lacks market for their bangus The cage operator may likewise stepproducts.

28

SOUTHERN GEMS

SWOT ANALYSIS

up the water monitoring parameters.

Pollution not only affects the fish in the cages. The toxic conditions could impact infauna, or animals living within submerged sediments. These include polychaetes, marine worms which play an important role in the marine environment. Their burrows contain microorganisms which produce enzymes that degrade organic matter.

What the operators of fish cages or mariculture parks need to do is periodically collect soil samples under the cages, and compare these to a color chart being developed by SEAFDEC. A reference color will let them know how far off or how near they are from ideal conditions. This method is basically the same technique used by rice farmers to see if their rice needs additional fertilizer.

If there are early signs of pollution, the fish cage operators are advised to observe a “fallow period� by moving the cages to another area in the mariculture park to allow the sediments and infauna to recover.

1. high cost of farm inputs, Availability of inputs and credit support . unavailability of loans for producer’s operating costs, lack of flexibility in financing and difficulty in providing loan supervision.

2. lack of technology, Technology development and transfer. Slow progress of research; Poor systems of technology transfer ; and indifference or lack of receptiveness of operators to technological innovations 3. multi-layered marketing system

Institutional Support Agency

Support

DA

Bureau of Fisheries and Aquatic Resources (BFAR). Have the jurisdiction and responsibility in the management, conservation, development, protection, utilization and disposition of all fisheries and aquatic resources of the country except municipal waters. BFAR implements programs that will increase milkfish production, technology assistance, sustain milkfish fry requirements and generate livelihood opportunities. Provides technology assistance from hatchery, nursery, production and processing, including training on compliance to standards.

Bureau of Agricultural Statistics (BAS). Collection of statistical data for economic research, development plan and policy formulation

DTI

Bureau of Investments (BOI)

SEAFDEC AQD

DOST

DENR

Promotion of the bangus as an industry, facilitate alternate markets for milkfish and improve quality of processed products.

Facilitate business development of this new businesses by providing them assistance in product development/improvement, productivity enhancement and access to financial support. DTI will also initiate the conduct of business matching to encourage investments on the opportunities brought by the partnership.

In order to promote global competitiveness, the (BOI) promotes the seal of origin for selected Philippine aquaculture exports such as shrimps, milkfish and tilapia.

Conducts research on fisheries problems; generates appropriate fisheries technologies; trains researchers, technicians, fishers and aquafarmers, and managers; disseminates information on fisheries science and technologies; and recommends policies pertaining to the fisheries sector.

The Aquaculture Department (AQD) in Tigbauan, Iloilo, Philippines (1973) for aquaculture research and development, including bangus.

Provides technological assistance to the mariculture community, including bangus deboning and bangus processing.

Protected areas & Wildlife Bureau (PAWB). Responsible for the management, protection, sustainable development & rehabilitation of protected areas to ensure the conservation of biological diversity toward the achievement of national economic and social development.

Ecosystem Research & Development Bureau. Assembles research results & scientific information & develop technologies for the management of various ecosystem & natural resources.

LGUs Source: DTI - NERBAC 12

30 

SOUTHERN GEMS

List of DTI-SK Assisted Organizations/ Association 1. Sultan Kudarat Fish Farmers Association Contact Person: Mr. Gerwin dela Cruz, President Address: Lebak, Sultan Kudarat Products: Fresh Bangus, Dried Fish, Crabs, Prawns, Bagoong

2. Sultan Kudarat Muscovado Industry Council

Contact Person: Mr. Cornelio Castaneda, Jr., Chairman Address: Pres. Quirino, Sultan Kudarat Products: Muscovado, Muscovado Jam

3. Sultan Kudarat Bamboo Processors Association

Contact Person: Ms. Jennevie Villarde, President Address: Tacurong City Products: Bamboo poles, slats, crafts, beach chair, sala sets,

bamboo huts

4. Sultan Kudarat Banana Chips Producers Association

Contact Person: Ms. Mercy Diquiatin Address: Bagumbayan, Sultan Kudarat Products: Banana Chips – sweetened, flavored: garlic, cheese,

chocolate

5. Sultan Kudarat Coffee Industry Development Council Contact Person: Dr. Dante Eugenio, President Address: Tacurong City Products: seedlings, roasted coffee, roasted and ground

coffee

6. Sultan Kudarat ICT Council

Contact Person: Ms. J. Karen Lepalim Demafiles, President Address: JKL Outsourcing, Tacurong City Services: Contact Center, Medical Transcription,

7. Phil. Palm Oil Development Council

Contact Person: Mr. Erwin Garcia Address: c/o DTI – Sultan Kudarat, Tacurong City

Bangus Festival - Investment Forum

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beyondfriedeggs.lifeblissjournal.com

Rellenong bangus or relyenong bangus (Stuffed Milkfish) is a very special Filipino dish because of the amount of work involved in cooking. Cooking process itself involves several processes, preparing the vegetables and fish. Removing the fish meat leaving the fish skin intact, steaming, de-boning, flaking, marinating, stuffing and frying.

RELLENONG BANGUS INGREDIENTS • 1 large size bangus • 1 onion, chopped finely • 4 cloves garlic, minced • 1 small size carrot, small cubes • 1 box raisins (optional) • 2 tomatoes, chopped • 1 raw egg, large • 1 tsp vetsin (optional) • 1 tsp salt • 1 green bell pepper, chopped finely • 2 tbsp flour • cooking oil for frying • ham, finely chopped • cooked peas

32

SOUTHERN GEMS

RELLENONG BANGUS COOKING INSTRUCTIONS • Scrape fish scales. Clean the fish.

• Gently pound fish to loosen meat from the skin.

• Use flat side of a knife in pounding.

• Break the big bone at the nape and on the tail.

• Insert the end of the handle of an aluminum kitchen turner (sandok) through the fish neck.

• Gently scrape down the handle between the meat and the skin.

• Scrape down to the tail, going around and on the other side of the fish.

• If you feel the meat is entirely separated from the skin, remove the handle, squeeze and push out meat (with the big bone), starting from the tail going out through the head.

This way, you will be able to push out the whole meat without cutting an opening on the skin.

• Marinate skin and head of the fish with soy sauce and calamansi juice.

Set aside.

• Boil fish meat in a little water.

• Drain. Pick out bones. Flake meat.

• Saute garlic until brown.

• Add onion and tomatoes.

• Stir in fish meat, carrot, and pepper.

• Season with salt, vetsin, ground pepper • Add raisins.

• Transfer cooked mixture to a plate.

• Cook, then, add raw egg and flour.

• Fill in mixture in bangus skin.

• Wrap bangus in wilted banana leaves or aluminum foil. Fry. • Cool before slicing.

• Garnish with sliced fresh tomato, spring onions or parsley.

• Serve with catsup.

Source: DTI - NERBAC 12 tagabaluarteblogspot.com

Pr o d u ct C a ta lo g

Sultan Kudarat Products

1

SK Muscovado Farmers Millers Corporation (PQ Muscovado)

3

Sultan Muscovado

5

Mountain Fresh Coffee

2

Vissia Muscovado

4

Brown Cup Coffee

6

Mahling’s Coffee

Address: Stall #3, Public Market, Poblacion, Pres. Quirino, SK Contact Person: Cornelio E. Castañeda,Jr. Contact Number: 0918-662-0953;(064) 384-1997 Product Lines: Muscovado Sugar

Address: Pres. Quirino, Sultan Kudarat Contact Person: Mauricio Tomboc Contact Number: 09152827500 Product Lines: Muscovado, Cane Vinegar

Address: Poblacion 1, Lebak, Sultan Kudarat Contact Person: Rudy R. Mermal Contact Number: 0919-2689915 Product Lines: Ground Coffee, Arabica, robusta, excelsa

34

SOUTHERN GEMS

Address: Lambayong, Sultan Kudarat Contact Person: Mr. Ian Abalos Contact Number: 09282905688 Product Lines: Muscovado from Naturally-grown sugarcane

Address: Sen. Ninoy Aquino, Sultan Kudarat Contact Person: Rebecca Gacayan Contact Number: 0929-4626173 Product Lines: Arabica, Robusta, Excelsa Coffee, Roasted Ground Coffee

Address: Bgy. Lower Katungal, Tacurong City Contact Person: Rosita C. Paredes Contact Number: 09179555867 Product Lines: Ground Coffee, Arabica, robusta, excelsa

7

Pag-asa Calamansi

9

Golden Passion

11

Albaran’s Sweet Coco & Candy Processor

Address: Esperanza, Sultan Kudarat Contact Person: Rainier Cachero Contact Number: (064)-202-6178 Product Lines: Calamansi Juice

Address: Kulaman, Sen.Ninoy Aquino, Sultan Kudarat Contact Person: Bong Guerrero Contact Number: 0906-1251469 Product Lines: Passion Fruit Concentrat

Address: Tinaungan, Pres. Quirino, Sultan Kudarat Contact Person: Nerissa Albaran Contact Number: (064) 543-9002; 0907822542 Product Lines: Bukayo

8

Sunripe Passion Fruit Concentrate

10

Angel’s Sweetened Banana Chips

12

Isulan’s Best Banana Chips

Address: Sen. Ninoy Aquino, Sultan Kudarat Contact Person: Arnold Sitjar Contact Number: 09272459258 Product Lines: Passion Fruit Concentrate, Ready-to-Drink

Address: Poblacion, Bagumbayan, Sultan Kudarat Contact Person: Mercy N. Ditianquin Contact Number: 0923-2375073 Product Lines: Sweetened Banana chips

Address: Isulan, Sultan Kudarat Contact Person: Gloria F. Aquino Contact Number: (064)-201-3412 Product Lines: Sweetened Banana Chips, Natural & Onion Flavored Banana Chips

Bangus Festival - Investment Forum

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P r o d u ct C a ta lo g

Sultan Kudarat Products

13

Goldyfoods FOODLINES

15

Shine Banana Chips

17

Country Deli

Address:Gen.Lim Street, Tacurong City Contact Person: Jaime Fernandez Contact Number(064) 200-3691 Product Lines: Tamarind candy,Durian polvoron

Address: New Pangasinan, Sultan Kudarat Contact Person: Anilyn Ramales Contact Number: 09059782158 Product Line: Sweetened Banana Chips

Address: Esperanza, Sultan Kudarat Contact Person: Merlinda Pendaliday Contact Number: 09276048059 Product Lines: Flavored Banana Chips, Meat Products

36

SOUTHERN GEMS

14

Krispees Banana Chips

16

Bagumbayan’s Best

18

Saging Ay Buhay Association (SABA)

Address: Sta Maria, Kalamansig, Sultan Kudarat Contact Person: Rodolfo F. Staples Contact Number: 09196561527 Product Line: Sweetened Banana Chips

Address: Bagumbyan, Sultan Kudarat Contact Person: Rebecca Latog Contact Number: Product Lines: Sweetened Banana Chips

Address: Columbio, Sultan Kudarat Contact Person: Helen Iligan Contact Number: 09185225057 Product Lines: Sweetened Banana Chips

19

Tinaungan’s Best Bukayo

21

Pasok Pangasius Farms

23

Adrian’s Dried Fish

Address: Brgy. Tinaungan, Pres. Quirino, SK Contact Person: Tinaungan Women’s Association Contact Number: Product Lines: Bukayo

Address: San Emmanuel, Tacurong City Contact Person: Estrelita A. Pasok Contact Number: (064)-200-3639 Product Lines: Fresh Pangasius

Address: Kalamansig, Sultan Kudarat Contact Person: Teddy Mandirigo Contact Number: 0912-2160564 Product Lines: Dried Danggit

20

Silver Scales Processed Bangus

22

Villarin Pangasius

24

Ocean Fresh

Address: Poblacion, Lebak, Sultan Kudarat Contact Person: Dr. Domingo Torreña Contact Number: 09185916242 Product Lines: Deboned bangus, Marinated Bangus, Prawns

Address: Esperanza, Sultan Kudarat Contact Person: Susan Villarin Contact Number: 0906-6580295 Product Lines: Fresh Pangasius

Address: RIC Tibpuan, Lebak, SK Contact Person: Leonida Alyansa Contact Number: (064) 2053347 Product Lines: Dried Fish, Marinated Fish, Deboned Bangus

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P r o d u ct C a ta lo g

Sultan Kudarat Products

25

Gonzales Farms

27

Red Gills

29

Charcoal Briquettes

Address: Bgy. Dansuli, Isulan, Sultan Kudarat Contact Person: Engr. Ruperto Gonzales Contact Number: 0935-9823750; (064)201-3430 Product Lines: Fresh Pangasius

Address: Lebak, Sultan Kudarat Contact Person: Teresita Caluyo Contact Number: 0908-432-0495 Product Lines: Deboned Bangus, Dried Fish

Address: Lambayong, Sultan Kudarat Contact Person: Pedro Tominez Contact Number: 0926-455-8878 Product Lines: Organic Rice

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26

Home Deli

28

Delightful Candy Factory

30

Inakie Herbal Medicine

Address: NRC, Lebak, SK Contact Person: Rosela Espartero Contact Number: 0926-998-0164 Product Lines: Tocino, Embutido, Tapa, Longganisa, Chickenrizo

Address: Paloy paloy, Lebak, Sultan Kudarat Contact Person: Rolando Lagare Contact Number: Product Lines: Pop Rice, Pop Corn

Address: Brgy. Tuka, Bagumbayan, Sultan Kudarat Contact Person: Lerna G. Brilliantes Contact Number: 09057677295 Product Lines: Moringa capsules,Turmeric powder/ granules

31

Suka de Kalayo

33

Juan Paolo Corn Husk Crafters Association

35

Enchanted Candle

Address: San Emmanuel, Tacurong City Contact Person: Contact Number: 0932-4569802 Product Lines: spicy cane vinegar

Address: Lower Katungal, Tacurong City Contact Person: Susan Juliano Contact Number: (064)477-069 Product Lines: topiari, Christmas Decors, flowers and dolls

Address: Contact Person: Contact Number: Product Lines:

Tacurong City Myra Pande Humong 0921-2078628 Decorative Candles

32

Double day Handicraft (Water Lily)

34

Bitbit Sikat Pasalubong Center

36

Salinas Craft (Morning Grass)

Address: CaĂąos Subd., Tacurong City Contact Person: Melinda Bonayos Contact Number: 0926-2687063 Product Lines: Ladies bags, Purse, Fashion accessories

Address: National Highway, Tacurong City Contact Person: Leila Flor E. Fernandez Contact Number: (064)-200-3665 Product Lines: Whitening Herbal soap, Ladies’ bags, Coin purse, Decors, Fashion accessories, Buko pie

Address: Columbio, Sultan Kudart Contact Person: Dante Salinas Contact Number: 0949-933-0057 Product Lines: slippers, picture frame (morning grass)

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P r o d u ct C a ta lo g

Sultan Kudarat Products

37

Kinayaw Crafts (Corn Husk)

39

New Passi Craft Makers (coconut midrib)

41

Elan Farms Coffee Nursery

Address: Bgy. Kinayaw, Bagumbayan, SK Contact Person: Senaida Baison Contact Number: 0926-191-0335 Product Lines: bags, slippers, wallets

Address: New Passi, Tacurong City Contact Person: Jo Ubaldo Contact Number: Product Lines: basket, plate, fruit trays

Address: Tacurong city Contact Person: Ramon Tan Contact Number: (064)-200-4157 Product Lines: Furniture & Wood molding

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38

Neo Country Crafts

40

Perfect Match

42

KPI Oil Palm Nursery

Address: Daguma Range Tri-people Federation, Chua, Bagumbayan, SK Contact Person: Ermilinda Loreno Contact Number: 0935-210-4112 Product Lines: scrunch, Abaca fiber, hats, leis, sinamay, bags (abaca)

Address: Tacurong City Contact Person: Raylin Bacolbacol Contact Number: 0909-524-2252 Product Lines: Costume Jewelry using Swarovski

Address: Kenram, Isulan, Sultan Kudarat Contact Person: Abbie Pendatun Contact Number: 09069215030 Product Lines: Oil Palm Seedlings

43

Natures Care

45

Isulan Kalakat Makers Association

47

BIENS BAMBOO CRAFT

Address: Kapingkong, Lambayong, Sultan Kudarat Contact Person: Dennis Bialen Contact Number: 0909-987-6500 Product Lines: Organic Fertilizer

Address: Isulan, Sultan Kudarat Contact Person: Hydie Delos Santos Contact Number: 09066742116 Product Lines: Kalakat products

Address: Purok San Jose, New Isabela, Tacurong City Contact Person: Bienvenido Omay Contact Number: 09262653876 Product Lines: Sala set, Lamp shade, Kubo

48

44

Ramon Tan Mini Saw Mill & Lumberyard

46

Charcoal Briquettes

Address: Tacurong city Contact Person: Ramon Tan Contact Number: (064)-200-4157 Product Lines: Furniture & Wood molding

Address: SKSU Isulan Campus, Isulan, Sultan Kudarat Contact Person: Dr. Teresita Cambel Contact Number: 064) 200-4262 Product Lines: charcoal briquettes, veggie noodles, dehydrated fruits

Villarde Bamboocraft Address: San Pablo, Tacurong Contact: Jennevie Villarde Number: 0906-860-1122 Product Lines: sala set, beach chair, kubo, lampshades

49

KINGS BAMBOO CRAFT

Address: Purok San Jose, New Isabela, Tacurong City Contact Person: Edwin T. Aquino Contact Number: 0926-528-9454 Product Lines: bamboo Sala set, Lamp shade, Kubo

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How to start a Business RATIONALE Bangus Nursery Photo: http://www.gaiadiscovery.com

According to Dr. Rafael D. Guerrero III, former executive director of the Philippine Council for Aquatic and Marine Research and Development (PCAMRD), milkfish “bangus” has always been the most important species cultured in the Philippines in terms of area and production. In fact, the Philippines is one of the top Bangus producers in the world, along with Indonesia and Taiwan which has contributed around 55 percent share of the world bangus production.

Bangus farming is a centuries-old industry not only in the Philippines but in other Asian countries as well like Indonesia and Taiwan. In the Philippines, Bangus is the major species in brackishwater fish farming and mariculture.

Currently, Alsons Aqua Corporation located at Alabel, Sarangani Province is expanding its export markets for frozen Bangus value-added products, in response to the growing demand in Bangus products. The company is developing arrangements for growership program with cooperators from communities in Sarangani, South Cotabato, Genaral Santos City, Sultan Kudarat, as well as from Mariculture Parks in Davao, Northern Mindanao. The company itself will absorb all the produce of the growers at a fair farm gate price.

The company is requiring at least 50 metric tons of milkfish per month from the small farmers for processing. Thus, all the possible growers will need fingerlings as such the project will have a market.

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How to start a Business Bangus Nursery

Photo: http://blogs.panda.org/

OBJECTIVE This project aims to contribute to the increase in the supply of fingerlings in the area that would result to income and employment generation.

PROJECT DESCRIPTION Bangus fingerlings refers to the young milkfish measuring not less than twenty-five (25) millimeters but not more than one hundred (100) millimeters, has a slender and silver-colored body, small mouth, and scissor like tail fin. It is covered by scales and which have been grown for some time on brackish water in Bangus nursery ponds. Bangus Fingerlings are used in fish cages, fishpens and fish ponds for growing Bangus. It is scientifically known as “chanos-chanos forskal”, and is commonly known in layman’s dialect as “Hatirin”. It is the only specie of chanidae order of gonorynchiformes which thrives in brackish water. It is naturally fed on natural food such as algae and fry mass as its supplemental foods.

There are two processes undergone in Milkfish Fingerlings Production, the pond preparation process and the actual process of fingerlings production. The pond preparation is done to prepare the ponds before the stocking of fry for 1 month.

The first step in pond preparation is the cleaning and drying of ponds. After cleaning and cultivating of ponds, follows the leveling of pond bottom. Next is pond maintenance which comprises the activity such as repairs of dikes and gate fixing.

Afterwards, eliminating process of which the ponds are applied with tea seed to remove any pests which will serves as the food competitors of the fry. The ponds are then flushed and drained for about three (3) days to neutralize the soil from the pesticides applied on the ponds. After draining of ponds follow the fertilization process in order to accumulate natural foods such as algae. Lastly, the ponds will then be irrigated and ready for fry stocking.

Consequently, the actual production process started with the stocking of milkfish Bangus Festival - Investment Forum

43

How to start a Business Bangus Nursery

fry to the nursery pond which comprises the acclimation process. The fry are then rested for two (2) to three (3) hours before stocking. The best time for stocking the fry is during the colder parts of the day, in the evening and early mornings. Before the fry are released, it is advisable that the temperature and salinity of the water in the ponds where they are to be stocked are almost the same. After stocking of fry, follows the growing process. For a month long duration, the fry are fed on algae on the following month the fry are fed on fry mass so that fingerlings can be able to adjust with supplemental foods during fish cages growing.

After the growing of milkfish fry into fingerlings approximately twentyfive (25) millimeters in size, the fingerlings are now ready for harvest.

During harvesting, ten (10) milkfish fingerlings are then placed in tightly closed oxygenated cellophane and are sold to respective buyers.

For one hectare production, the projected sales is Php 525, 000.00.

This proposed business is suited in Region 12.

The investment cost amounts to Php 694, 575.33. Within one cropping cycle Php 417, 424. 67. Projected Gross Profit Rate and Net Profit Rate are 79.80% and 79.51% respectively while the Return on Investment is 180%. The cost of investment will be recovered approximately in 6 months and 12 days. This means that the project is viable and worth embarking for.

MARKET TRENDS AND OPPORTUNITIES Milkfish production represents one of the main sectors of the Nation's Fishery Industry. It is the predominant species being cultured in the Philippines hundred years ago. Currently, milk fish cages have been flourishing for years as demand of such products also increases over time. Reportedly, the industry employs close to 300,000 fish farmers, entrepreneurs, processors and workers.

The Philippines has been exporting bangus to other countries like the United States, England, Canada, and Japan.

The Bureau of Fisheries and Aquatic Resources has likewise spearheaded the production of bangus in mariculture parks all over the country due to its increasing demand. In addition, these parks need 44 

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How to start a Business Bangus Nursery fishpond nurseries and transition ponds to grow juveniles. Thus, Bangus nursery has a niche in the market.

FINANCIAL REQUIREMENT

FINANCIAL REQUIREMENT Particulars Land Development Cost Fine Net Napa Net Big motor boat Small Motor Boat Small boat Multicab Total

Working Capital (1 cropping Cycle=4months)

Amount 500,000.00 4,800.00 9,200.00 20,000.00 10,000.00 10,000.00 50,000.00 604,000.00

Farm Inputs

63,040.00

Labor

7,480.00

Overhead

18,555.33

Operating Expenses

1,500.00

Total

90,575.33 694,575.33

TOTAL PROJECT COST

ASSUMPTION

•There are 150,000 fry per 1 hectare/cropping cycle •Cropping cycle is 4 months •Survival rate is 70% •Depreciation is computed based on straight line method

PROJECTED SALES AND INCOME Particulars Sales Less: Cost of Sales Farm inputs Fry (150,000 fingerlings @ P 0.40) Fry Mass (30 sacks @ P304) Subtotal Labor Overhead Expense Total Gross Profit Less: Operating Cost Net Profit Return on Investment Net Profit Ratio Gross Profit Ratio

Source: DTI - NERBAC 12

Amount 525,000.00

60,000.00 3,040.00 63,040.00 7,480.00 35,555.33 106,075.33 418,924.67 1,500.00 417,424.67 180% 79.51% 79.80%

Payback Period 6 months and 12 days

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DeboneD bangus

Photo: http://blogs.panda.org/

RATIONALE

M

ilkfish is the national fish of the Philippines. Aside from being a favorite viand of the population, milkfish industry is also an important component of the fisheries sector and the national economy. It has a significant contribution to national output, employment, public revenues, and nutrition.

As stated by the Agriculture Business Week, Philippines has contributed around 55 percent of the total world bangus production. The industry likewise employs approximately 800,000 people when all its backward and forward industry and activity linkages were accounted for.

Milkfish are harvested and marketed mostly as fresh or chilled, whole or deboned, frozen, or processed (e.g. fresh frozen deboned, fresh frozen deboned descaled, and smoked fish

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SOUTHERN GEMS

In addition, because of steady supply of bangus in the market, there are now processing plants for bangus value-added products such as deboned milkfish.

Deboned milkfish, or "boneless bangus," has become popular in stores and markets because milkfish is known for being bonier than other food fish in the Philippines. Further, processing increases the commercial value and palatability of milkfish. However, it does not only increase its commercial value but it will also provide additional employment opportunities. Thus, venturing into the said project is worth investing for.

OBJECTIVE

Deboned Bangus

deboned). In SOCCKSARGEN, Sarangani supplies smoked, fresh frozen, deboned, marinated and bottled bangus to the United States, Canada, Australia, UK, Japan, Singapore, Hong Kong and Micronesia.

The project aims to increase the commercial value of milkfish as well as to provide employment opportunities in the region.

PROJECT DESCRIPTION

Milkfish (Chanos chanos, Forskal) locally known as “bangus” belongs to the Chanidae family which is nearly related to tuna and salmon because of its uniformly-shape and migratory nature. A typical Bangus has 265 to 300 bones.

It is a rich source of Omega-3 fatty acids which is good for the heart. Health experts recommend eating fatty fish at least twice a week. Fish is a good source of protein and do not have the high saturated fat that fatty meat products have.

Since it is known for being much bonier than other food fish in the country, deboned milkfish, or "boneless bangus," has become popular in stores and markets. Additional milkfish commodities such as the famous “boneless bangus” in the Philippines and smoked fish in Indonesia can be developed to make the fish more attractive for exports to non-traditional consumers of milkfish. The projected sales of the business is P 3, 200.00 every two weeks.

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Deboned Bangus

Bangus deboning involves the following procedure; washing, splitting, removal of the internal organs, removal of backbone and dorsal fin, deboning, dorsal intermuscular spines, lateral intermuscular spines, rib bone, and ventral intermuscular spines. After deboning, it will be soak at the brine solution for five-ten minutes. Afterwards, it will be strain and marinated for fifteen minutes. The deboned bangus is packed in polyethylene bag is individually quick frozen (IQF) or plate frozen. It will be store in the freezer for one day. Each bag contains one kilo with three pieces of milkfish. Since the raw material is milkfish “bangus”, the project is suitable where milkfish production is proven.

In the region, General Santos City and Sarangani is appropriate for the project.

The project will require an initial investment of Php 19, 288.57 with a working capital amounting to Php 2, 488.57. Financial ratios show that

Photo: http://blogs.panda.org/

48

SOUTHERN GEMS

Gross Profit Rate (GPR) and Net Profit Rate (NPR) are 12.23% and 11.62%.

The return on investment is 46%. The investment cost will be recovered approximately in 1 year, 1 month, and 17 days. Thus the project is worthwhile to embark on.

CURRENT MARKET TRENDS AND OPPORTUNITIES

Malaysia, Philippines, and Indonesia are known as milkfish producing countries.

However, it is not patronized by other countries due of its bony in nature.

In order to gain more popularity and capture the taste of a wider market, bangus deboning is recently advertised.

With this, bangus as a traditional fish known to have countless bones comes to the market in a new form. Consequently, with the existence of milkfish growers in the region, especially in General Santos City and in Sarangani Province, the industry is very much worthwhile to embark on for there will be no hindrances on the supply of bangus.

In Mindanao, particularly in Sarangani Province, several processing plants export fresh and processed milkfish.

About six (6) plants are exporting to US and two (2) of these plants have penetrated European market that commands a better price than US market.

FINANCIAL REQUIREMENTS

FINANCIAL REQUIREMENTS Amount

Deboned Bangus

Particulars Fixed Assets Knife Forcep Scissors Basin Tray Chopping Board Freezer Total

200.00 200.00 100.00 400.00 500.00 400.00 15,000.00 16,800.00

Working Capital (2 weeks) Direct Materials Direct Labor Overhead Expense

1,819.00 480.00 170.00

Selling and Administrative Expense

19.57

Total TOTAL PROJECT COST

2,488.57 19,288.57

UNDERLYING ASSUMPTIONS

•Selling and Administrative Expense is 5% of the gross profit.

•Depreciation expense is computed based on straight line method.

•Production is twice a week PROJECTED SALES AND INCOME (2 weeks operation) PROJECTED SALES AND INCOME (2 weeks operation

Particulars

Amount

Sales (20 packs @ 160.00) Less: Cost of Sales Direct Materials Milkfish (20 kilos @ P85.00/kilo) Salt (1 liter @ P 10.00) Soy Sauce (Half Galon @ P 30/galon) Vinegar (Half Galon @ P 30/galon) Pepper (1 pack @ P 10.00/pack) Garlic (5 cloves @ P 5.00 per cloves) Brown Sugar (2 tbs @ P 3.00/tbs) Seasoning (1 piece @ P 28.00/piece) Polyethylene (20 pieces @ P 0.50/piece) Subtotal Direct Labor (20 kilos with 3 pieces per kilo @ P 8.00/piece) Factory Overhead Ice Water Subtotal Add: Depreciation Expense Subtotal Total Cost of Sales Gross Profit Less: Selling and Administrative Expense

Net Income

Net Profit Ratio Gross Profit Ratio Return on Investment Payback Period - 1 year, 1 month and 17 day

3,2010.00 1,700.00 10.00 15.00 15.00 10.00 25.00 6.00 28.00 10.00 1,819.00 480.00

20.00 150.00 170.00 339.58 509.58 2,808.58 391.42 19.57

371.85

11.62% 12.23% 46%

Source: DTI - NERBAC 12 Bangus Festival - Investment Forum

49

MILKFISH (BANGUS) PRODUCTION

Photo: http://business.inquirer.net/

RATIONALE

M

ilkfish production is very much popular among Southeast Asian countries particularly Malaysia, Philippines and Indonesia. The latter two countries have a multi-million dollar milkfish industry. On the other hand, in the Philippines, milkfish or bangus is popularly

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SOUTHERN GEMS

cultured because of its being a better food-converter species.

Here, it is being cultured in brackish water ponds, pens and sea cages thus contributing significantly to the increase in production.

Consumer preference for milkfish is traditionally very strong.

Existence of large domestic market and technological development for seed production and culture techniques has

MILKFISH (BANGUS) PRODUCTION enabled the milkfish aquaculture industry to maintain its dominance and sustain competition over the culture of other fish and shellfish species in the country.

There are several processing plants in General Santos City and one in Sarangani Province that export fresh and processed milkfish.

About six (6) plants are exporting to US and two (2) of these plants have penetrated the European market that commands a better

price compared to the US market.

The local market’s demand for the whole SOCKSARGEN area is about 240 tons per month while the plants need 400 tons per month. However, only one fishpond in General Santos City produces Milkfish in volume and is not enough to serve the local market. The plants have to source their milkfish from neighboring provinces and even as far as the Visayas. (Source: Bureau of Agricultural Statistics)

OBJECTIVE

The project aims to provide a mass production of milkfish in Region 12 to meet its high domestic and international demand and to generate livelihood opportunities.

PROJECT DESCRIPTION

Milkfish (Chanos chanos, Forskal) locally known as “bangus” belongs to the Chanidae family which is nearly related to tuna and salmon because of its uniform shape and migratory nature. Since it is notorious for having too many bones than other fishes in the country, deboned milkfish, or "boneless bangus," has become popular in local stores and markets. On the other hand, in order to make the fish more attractive for exports to nontraditional consumers of milkfish, this “boneless bangus” in the Philippines Bangus Festival - Investment Forum

51

MILKFISH (BANGUS) PRODUCTION together with Indonesia’s smoked fish can be further enhanced.

Data from the Bureau of Agricultural Statistics show that Milk fish Industry continuously grows through the years. The demand of these huge and powerful

countries assures a stable market for milkfish investors.

Milkfish products are widely distributed in foreign countries such as United States of America, Guam, Hawaii, South Korea, Japan, Great Britain and Northern Ireland and Australia.

However, there are no exact data on hand as to 52 

SOUTHERN GEMS

the total volume needed by these foreign markets in the entire world. Nevertheless, this project aims to fill the unsatisfied demand and the mounting shortage of supply for milkfish (bangus) to its domestic and international market which is highly imposed

by high-end restaurants, hotels and fast food chains.

Based on one (1) cropping cycle of a 125 cu. m. cage milkfish production, its projected total sales is Php 416,500.00.

Culture of milkfish in marine cages is intensive, characterized by a small

area, high levels of inputs like seeds and feeds, which result to high yields. Milkfish farmers in the Philippines are finding it advantageous to culture fish in mariculture parks. Similarly, milkfish can also be poly cultured with danggit because it needs no expense on feeds since danggit can live with just the manure of milkfish.

General Santos City and Sarangani are proven to be good locations for this venture due to successful prawn growers in the said areas. Relatively, a 125 cu. m. area cage can be grown with a maximum stocking density of 30,000 pieces of fingerlings with a survival rate of 90% of which the project utilizes only 33% or 10,000 fingerlings. Upon harvesting, milkfish weighs an average of 350 grams per piece producing 5,400 kilos. On the other hand, needed farm inputs such as fingerlings and feeds are readily available in the local market.

The project will require an initial investment of Php

MILKFISH (BANGUS) PRODUCTION 426,850.00 with a working capital amounting to Php 381,850.00. The 125 cu. m. area cage of milkfish production will generate an income of Php 34,650.00.

Financial ratios show that Gross Profit Rate (GPR) and Net Profit Rate (NPR) are 9% and 8%. The return on investment is 19%. The investment cost will be recovered approximately in 4 years, 8 months and 18 days. Thus the project is worthwhile to embark on.

CURRENT MARKET TRENDS AND OPPORTUNITIES Milkfish has been usually marketed as fresh fish, hence market demands at certain times created price fluctuations. At peak times, prices can double or triple while during non-peak times, prices vary depending on market supply and demand. Techniques for processing milkfish in other forms, such as canning and drying, have been developed in Taiwan. In the Philippines, such technology is still to be adopted on a larger scale.

Milkfish , a traditional food fish in three milkfish producing countries, namely Malaysia, Philippines and Indonesia,

is not popular in other countries because of its being a bony fish.

In order to open new markets, promotion of milkfish is required.

Additional milkfish commodities such as the famous “boneless bangus� in the Philippines and smoked fish in Indonesia can be developed to make the fish more attractive for exports to non-traditional consumers of milkfish.

Philippines' milkfish industry is expected to generate higher revenues in the succeeding years following the development of foreign markets for milkfish fingerlings (bangus). In

Region 12, particularly in Sarangani Province, several processing plants exist which exports fresh and processed milkfish. About six (6) plants are exporting to US and two (2) of these plants have penetrated the European market which commands a better price than US market.

Locally, the demand of the whole SOCKSARGEN area is about 240 metric tons per month while the plant needs 400 metric tons per month. However, only one fishpond in General Santos City produces Milkfish in volume and is not enough to serve the local market.

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MILKFISH (BANGUS) PRODUCTION

FINANCIAL REQUIREMENT

For 125 cu. m. Cage Computation

Particulars

Amount

Assets Fixed Assets Cage with Kubo Nets and other Implements Total Working Capital (5 Months) Production Inputs Direct Labor Overhead Operating Expenses Total

15,000.00 30,000.00 45,000.00 359,000.00 15,600.00 4,250.00 3,000.00 381,850.00

Total Project Cost

426,850.00

Underlying Assumptions ( 125 cu. m. area cage) • Milkfish is to be cultured with danggit.

• Stocking density (Fingerlings) Milkfish Danggit • Feed conversion rate (FCR) • Survival rate Milkfish Danggit • Selling price/kilo Milkfish Danggit • Ave. marketable size (harvest) Milkfish Danggit

10,000 pieces 2,000 pieces 2.5 kilo 90% 95% Php 90.00 Php 140.00 350 grams 500 grams

Fixed assets are depreciated using the straight line method for 5 years.

PROJECTED SALES AND INCOME

(5 Months Production Cycle)

Particulars

Amount

Sales Milkfish (3,150 kilos @ Php 90.00) Danggit (950 kilos @ Php 140.00) Total Less: Cost of Sales Production Inputs Fingerlings Milkfish (10,000 pcs. @ Php 3.00/pc) Danggit (2,000 pcs. @ Php 2.00/pc) Feeds Milkfish (10,000 pcs. @ Php 13.00/kilo @ 2.5 FCR) Direct Labor Caretaker (1 @ Php 100.00/day @ 150 days) Harvester (5 @ Php 120.00/day @ 1 day) Overhead Utilities Depreciation (Fixed Asset/EUL*/WC Cycle) Total Gross Profit Less: Operating Expenses Repairs and maintenance Communication Total Net Income Before Tax Return on Investment (Ave. Net Income/TPC) Payback Period (TPC/Ave. Net Income + Depreciation) Gross Profit Ratio (Gross Profit/Total Sales) Net Profit Ratio(Net Profit/Total Sales)

283,500.00 133,000.00 416,500.00

30,000.00 4,000.00 325,000.00 15,000.00 600.00 500.00 3,750.00 378,850.00 37,650.00 1,000.00 2,000.00 3,000.00 34,650.00 19% 4 yrs 8 months and 18 days 9% 8%

Source: DTI - NERBAC 12

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SOUTHERN GEMS

Working Committees Executive Committee Cong. Arnulfo F. Go, 2nd District, SK RD Pautong Ambutong, BFAR - 12 PD Nelly Nita N. Dillera, DTI - SK Mayor Dionesio Besana, Lebak Mayor Rolando Garcia, Kalamansig Program and Invitation Felisa A. Sinobago Carmen S. Porto Tarciano Moneva, Jr. Arianne Mae T. Apatan Invitation of Participants Mr. Ricky Noble Mr. Jermin dela Cruz Eugene Roxas Solicitation Committee Mr. Jermin dela Cruz Registration Committee Mr. Ricky Noble Ms. Marilou F. Manaay Ms. Arianne Mae T. Apatan Technology Training Ms. Jocelyn Jauhali, BFAR Prof. Susan D. Badillo, SKSU Prof. Winnie Rose B. Laguda, SKSU MAO Nenita Frias

Product Devt & Food Safety Ms. Carmen S. Porto Ms. Marilou F. Manaay Bangus Competition Mr. Jermin dela Cruz Ms. Felisa A. Sinobago Ms. Carmen S. Porto Mr. Ricky Noble Ms. Arianne T. Apatan Bangus Competition Mr. Jermin dela Cruz Ms. Felisa A. Sinobago Ms. Carmen S. Porto Mr. Ricky Noble Ms. Arianne T. Apatan Publicity, Promotion & Souvenir Program PD Nelly Nita N. Dillera Mr. Orville Gamayon Ms. Arianne T. Apatan Mr. Michael Sabnal Ms. Carmen S. Porto NERBAC – Region 12

2nd Floor, Quality ApplianceBldg., Alunan, Highway, Tacurong City Telefax: (064)200-3166, Email : sk@dti12.org