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Community Owned Fruit Processing Plant
(Bansalan Project Summary)

There is a growing oversupply of fresh fruits, specially mangoes, in the three municipalities (as well as in the whole Southern Coast of Mindanao) due to the efforts of small farmers to increase their income by planting fruit trees in portions of their farms. This has exposed them to exploitative trading practices. If left unattended, this can further degrade the trust and confidence of such farmers on the national government as a whole and the LGU in particular, on the ability of the government to address their economic concerns. The efforts of small farmers to mitigate their own impoverishment, require an intervention and to assist them to cross-over to a market economy, through a concerted action and linkages all the way to export markets. The project addresses the renewal of trust and confidence in the local government by demonstrating that three local government units can formally

agree to establish a single processing plant to support over 1,800 small farmers in their area of governance to maximize their constituents' farm production values. It will demonstrate that such a processing plant can be jointly owned by farmers, LGUs and Overseas Filipinos, as stakeholders; that LGUs are capable of trusting their own farmer-constituents by providing the guarantees, if necessary, to finance the farmers' productivity; and that Overseas Filipino Groups in at least seven (7) Hostlands can act as selling agents for domestic products.

The concept is innovative as it recognizes that the problem is socio-economic in nature. It is focused and oriented towards: 1) building trust and confidence among the three participating groups (LGU, Farmer Constituents, OFs); 2) the formation of a joint venture enterprise where such participation can happen; and 3) creating access to export-market the products thru linkages with the stakeholders. It seeks to establish a sustainable effort for income improvement for the local farmers, and opens an avenue for continuous growth of the local economy.

It will directly benefit small farmers in the three (3) municipalities, with over 600 small farmers in Bansalan alone, in terms of a stable farm income and maximization of values through processing and export marketing. It will likewise create an income opportunity for overseas Filipino aggrupations, both as investors and as selling agents, which can then be used for strengthening their organizations in the respective Hostlands.

The targeted areas (Municipalities of Bansalan, Matan-ao and Magsaysay) are highly agricultural. There is lack of commercial or industrial activities that would absorb the skilled and able-bodied labor force. The project will create jobs in areas where unemployment rate is high. The spin offs are small livelihood activities that would normally arise as the processing plant becomes operational such as increased demand in transportation services, communications, services, food stalls, housing, etc.