Korean firm is new buyer of cassava grown by Northern Mindanao ARBOS
ASOUTH Korean company has secured a contract to buy cassava products from five agrarian reform beneficiary organizations (ARBOS) from the provinces of Misamis Oriental and Bukidnon in Northern Mindanao.
The company, Daesang Philippines Corporation, a South Korean food manufacturing company, whose base of operations is located in Pasig City, is also engaged in the business of cassava starch production.
The company plans to build a processing plant inside the PHIVIDEC Industrial Estate in Tagoloan, Misamis Oriental, with a target daily capacity of 500 metric tons.
Department of Agrarian Reform (DAR) Northern Mindanao Regional Director Zoraida Macadindang said the DAR, Department of Agriculture, Department of Trade and Industry, and the local government unit of Region 10 jointly hosted the memorandum of agreement (MOA) signing.
“The MOA involves the production of cassava by the ARBOS based on the specifications required by Daesang, who will directly buy the cassava from the cooperative,” Macadindang said.
Daesang proposes to implement the cassava-processing project, where its business requirements can provide livelihood, production, and income opportunities for the cassava farmers of Northern Mindanao.
Macadindang said DAR has committed to provide farm inputs, tractors, hauling trucks, and other equipment, access to financing for production, and marketing and marketing assistance as support services components to the project.
Price as per agreement is at P4.00 per kilo with the local government unit and the DA to serve as independent consultants who will provide a list of benchmark market price references to be used during the price negotiations.
The participating ARBOS who signed their respective MOAS were the Mindulao Agrarian Reform Community Cooperative of Magsaysay, Misamis Oriental, the Kabangasan-mapua-dahilig Agrarian Reform Community Cooperative of Balingoan, Misamis Oriental, the Sampatulog ARB Farmers’ Cooperative of Alubijid, Misamis Oriental, the Mantibugao ARB Farmers’ Cooperative of Manolo Fortich, Bukidnon and the BLISS Lingion Multipurpose Cooperative of Manolo Fortich, Bukidnon.
“We are thankful for the marketing agreement with Daesang, as this will encourage us, farmers, to engage in the planting of more cassava with an assured buyer for our products. With the collaborative efforts of different government agencies in making this a reality, we sincerely hope that our business venture with the company will be sustained,” Kabangasanmapua-dahilig Agrarian Reform Community Cooperative of Balingoan, Misamis Oriental (KMDCC) outgoing chairperson Erlinda D. Cagmat said.
The agreement she said is the first step towards a bright future with local farmers and consolidators.
“Our tapioca plant will hire local talent and purchase local raw materials. In addition, we look forward to the development of our company. We will create a bright future by combining our company and the community to develop the cassava industry together,” she added.