Nestlé aids cof­fee farm­ers to avail of easy ac­cess credit

Agriculture - - Contents -

NESTLÉ PHILIP­PINES has suc­cess­fully as­sisted an ini­tial batch of cof­fee farm­ers to avail of loans un­der the De­part­ment of Agri­cul­ture-Agri­cul­tural Credit Pol­icy Coun­cil’s (DA-ACPC) Pro­duc­tion Loan Easy Ac­cess (PLEA) Pro­gram un­der the lead­er­ship of Sec­re­tary Em­manuel F. Piñol.

The PLEA Pro­gram is the ban­ner credit pro­gram of the De­part­ment of Agri­cul­ture. It is a spe­cial credit fa­cil­ity de­signed to ad­dress the fi­nan­cial needs of mar­ginal and small farm­ers and fish­er­folk for fast, con­ve­nient and af­ford­able credit.

Un­der the PLEA, small farm­ers and fish­er­folk may avail of a max­i­mum loan amount of R50,000 to fi­nance the pro­duc­tion of their crops, live­stock, poul­try, and re­quire­ments for fish­ing ac­tiv­i­ties. For high value crops like cof­fee, the max­i­mum loan­able amount is R150,000.

For eas­ier and more con­ve­nient credit ac­cess, the DA-ACPC taps co­op­er­a­tives and non-gov­ern­ment or­ga­ni­za­tions (NGOs) as credit de­liv­ery chan­nels or lend­ing con­duits who eval­u­ate each agri-fish­ery project as well as the ca­pac­ity to pay of bor­row­ers.

Farm­ers with land to­tal­ing three hectares or be­low are el­i­gi­ble to ap­ply for the PLEA pro­gram, which fea­tures a very low in­ter­est rate of 6% per an­num payable in two to 10 years, de­pend­ing on the com­mod­ity or ac­tiv­ity. In ad­di­tion, PLEA does not re­quire any col­lat­eral and comes with free in­sur­ance from the Philip­pine Crop In­sur­ance Cor­po­ra­tion (PCIC).

Through the col­lab­o­ra­tion of Nestlé Philip­pines and DA-ACPC, some 45 cof­fee farm­ers from the mu­nic­i­pal­i­ties of Mara­mag, Pan­gan­tu­can and Lan­ta­pan in Bukid­non have been able to avail of fi­nan­cial as­sis­tance un­der the PLEA Pro­gram.

Loans to­tal­ing to R1,290,000 were re­leased to the cof­fee farm­ers through DA-ACPC’s lend­ing con­duits in the prov­ince: the Mindanao Con­sol­i­dated Co­op­er­a­tive Bank (for­merly Bukid­non Co­op­er­a­tive Bank), and Sta. Mon­ica of Pan­gan­tu­can Mul­tiPur­pose Co­op­er­a­tive. The ini­tial loans were re­leased last April with a loan re­pay­ment pe­riod of one year.

Fol­low­ing the suc­cess­ful part­ner­ship with DA-ACPC, Nestlé Philip­pines is com­mit­ted to con­tin­u­ing the col­lab­o­ra­tion in or­der to as­sist more cof­fee farm­ers in the prov­inces of Bukid­non and Sul­tan Ku­darat to avail of loans un­der the PLEA pro­gram.

Nestlé’s ef­fort to link cof­fee farm­ers to credit sources is a com­po­nent of the NESCAFÉ Plan, a global ini­tia­tive which helps en­sure a sus­tain­able sup­ply of qual­ity green cof­fee and seeks to cre­ate shared value for farm­ers, in line with Nestlé’s pur­pose of en­hanc­ing qual­ity of life and con­tribut­ing to a health­ier fu­ture.

Through this pro­gram, Nestlé Philip­pines aims to in­crease the sup­ply of lo­cal Ro­busta cof­fee while help­ing Filipino farm­ers in­crease their yield and in­come from cof­fee farm­ing. Un­der the pro­gram, cof­fee farm­ers gain ac­cess to good qual­ity plantlets at cost, tech­nol­ogy trans­fer through train­ing across the coun­try, a sup­port network of agron­o­mists, and strate­gi­cally-lo­cated buy­ing sta­tions close to cof­fee ar­eas so they can sell cof­fee beans di­rectly to Nestlé.

Through the col­lab­o­ra­tion of Nestlé Philip­pines and De­part­ment of Agri­cul­ture-Agri­cul­tural Credit Pol­icy Coun­cil (DA-ACPC), some 45 cof­fee farm­ers from the mu­nic­i­pal­i­ties of Mara­mag, Pan­gan­tu­can and Lan­ta­pan in Bukid­non, have availed of fi­nan­cial as­sis­tance through the Pro­duc­tion Loan Easy Ac­cess (PLEA) pro­gram be­ing im­ple­mented by the DA-ACPC.

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