ARCCESS PROJECT ROPOSAL A.

PROJECT IDENTIFYING DATA

1. PROJECT TITLE 2. PROPONENT :PROVISION OF COMMON SERVICE FACILITIES CUM TRAINING

: DEPARTMENT OF AGRARIAN REFORM, NATIONAL DAIRY AUTHORITY (NDA)

3. PROJECT LOCATION : MALLIG, ISABELA 4. TARGET BENEFICIARIES : ARBs OF SAN JOSE SUR, SAN JOSE NORTE I, SAN JOSE NORTE II, MALIGAYA, VICTORIA AND CASILI AND MALAYA DEVELEOPMENT COOPERATIVE

Table 1. Project Location and Target Direct Beneficiaries Location Municipality/ies Barangay/s Maligaya Mallig San Jose Norte I San Jose Norte II San Jose Sur San Ramon Victoria Casili TOTAL ARC Name SANMAVICA Name of ARC Cluster ARB 300

Beneficiaries On-ARB 239 357 250

255

36

773

931

117 25 5 83 785

27 19 3 5 329

822 603 552 73 3,180

942 584 539 10 3,256

5. PROPOSED BENEFICIARY ORGANIZATIONS Name of ARBOs Malaya Development Cooperative No. of Members 1,253 Area (ha) 6,507

6. PROJECT DURATION The project will be implemented for assistance in Three years through the DAR hired BDS. 7. BUDGET Year Amount Requested from DAR 384,000 424,300.00 170,000.00 978,300.00 Counterpart Beneficiaries Total Other Agencies/Group 1,964,000.00 2,946,000.00 20,000.00 4,930,000.00 7,564.48

Proponent 3,470,000.00 50,000.00 3,520,000.00

2012 2013 2014 TOTAL Cost per Beneficiary

50,000.00 50,000.00

B.
1.

PROJECT DESCRIPTION
DESCRIPTION OF THE PROJECT

The project will be the provision of common service facilities to Malaya Development Cooperative to put up a Dairy Farm under the Dairy Multiplier Scheme of the government in the municipality of Mallig, Isabela the program includes the following: Herd infusion that includes importation of dairy stocks diversification of sources and local procurement of dairy animals, Dairy Business Enhancement, with the Herd Program, productivity is the main concern but for the Dairy farmers to be successful the business should be profitable, Infusing enterprise orientation is the key to sustainability of the program. Milk Quality Assurance to produce clean and wholesome local milk and Milk Feeding Program. It addresses the issues of poverty by rescuing children from malnutrition while providing a steady flow of income to local dairy farmers and their cooperatives. The facilities needed are the following centralized Milking Parlour Facility(milking machine, milking parlour, milk quality testing kit, milk cans), tire bath and footh bath, water tank 3,000 liters with elevated flat form, water drilling with submersible pump, mechanical fan, processing facilities such as pasteurizer and homogenizer, raw milk chilling tank 500 liter capacity, milk meter for measuring individual performance in the milking parlour and mobile milk tanker and Electrical connection with 20 to 30 KVA transformer single phase.

2. PROJECT BACKGROUND The second congressional district of Isabela, particularly known as the Mallig Plains is basically a rice producing area. It is here where the proponent Malaya Development Cooperative operates its business. With the present situation of the Malaya Development Cooperative in the following businesses such as production loans, tractor services, cassava plantation and micro financing it is but timely to venture into another line of business like the Dairy Production through the Dairy Multiplier program of the government. To serve most of the members socialized microfinancing is necessary; to relieve them from the environment of usurers appropriate training with sustainable livelihood activities will alleviate their living condition and increase household income in the community. 3. PROJECT RATIONALE/SPECIFIC PROBLEM BEING ADDRESSED Livestock can be a step towards asset building in poverty reduction, it can also build asset in terms of education by teaching young people understanding about the relationship between humans and animals by raising their interest in new form of farming, It will also increase farmers farm utilization and provide them with alternative income sources between planting season Dairy can provide regular income rather than bumpy cash flows from rice and corn crops and other crops thus provide added value for the community in the form of fresh milk, sweets and other products especially for producers near roads, village, markets and schools. It fits widely the farming situation in the country where land is becoming scarcer, where resources are becoming limited and prices of inputs are becoming higher, and where uncertainty due to factors such as climate change demands diversified economic activity. Choosing Dairy Enterprise is a logical solution for the Agrarian Reform Communitys (ARCs) economic problem needs. Specific Problems that need to be addressed: 1. There is a need for the ARBs to have trainings on Dairy Business Enhancement to establish effective business model to assist them to think business and profits and not merely productivity. 2. There is a need for the Cooperative to have better access to institutional credit for herd expansion and better maintenance of animals. 3. The issues of unproductive animals and better feeding practices must also be addressed. 4. There is a need to significantly improve access to veterinary and feeding services. 5. There is a need to encourage and teach farmers to convert milk into other products such as cheese and native milkbased products which will fetch higher prices than liquid milk. Pasteurization and other methods to increase the shelf-life of milk will translate to more revenues for the farmers.

4. PROJECT OBJECTIVES General Objectives To provide better livelihood opportunities for the Agrarian Reform Community (ARC), the SANMAVICA ARC thus increasing the ARB household income and improvements in the ARBs quality of life. Specific Objectives 1. To assist Malaya Development Cooperative in the establishment of dairy based enterprise. 2. To forge a collaborative and strategic partnership with the National Dairy Authority (NDA) and private dairy sector members thru the Dairy Confederation of the Philippines (Dairy Con) for the establishment of dairy-based enterprise in SANMAVICA ARC in Mallig, Isabela. 3. To encourage private and public investments in dairy enterprises in Agrarian Reform Communities 4. To encourage and promote the active participation of farm families, rural cooperatives and the private sector, recognizing them as principal agents in the development of dairy industry. 5. To stabilize enterprise operations which includes managing a product mix that suits a local market and achieve maximum cost efficiencies.

6.To maximize the parallel and collaborative operation of big and small farms.

7.To encourage investment in breeding and herd development and improvement.

8.To facilitate collective arrangements that will enable cooperatives to acquire dairy animals, feeds, veterinary and other supplies, materials, equipment, services of all kinds and other dairy inputs under favorable terms. 9. To assist cooperatives in developing market channels and in negotiations for bulk outlets of milk output.

5. EXPECTED PROJECT BENEFIT AND OUTCOMES Increase in income to 60-100 % of the dairy farmers in the community. Collaboration between the public and private sector in the areas of productive technology and extension. Increase in dairy production in the community thus increasing in milk production. Imports of milk and milk products are expected to slow down

Increase and Development of added value products in the community such as quality standard fresh milk, sweets and other dairy products. Steady flow of income to local dairy farmers and cooperatives.

Address the problem of malnutrition in children in the community through the milk feeding program of the government.

Establishment of milk collection centers, milk plants and distribution points.

6. MAJOR PROJECT COMPONENTS Provision of Business Development Service (BDS) provider This component shall provide organizational development and capacity building seminar/trainings, as well as other activities that promote growth and development of the Malaya Development Cooperative. Strengthening of the cooperatives would need massive promotion for membership expansion and internal fund generation. Tutorial or coaching/mentoring and hands on training are likewise needed to enhance the capabilities and equip the officers and management staff the necessary skills to better manage the affairs of the organization. Technology promotion and enhancement includes the provision of: Dairy production and management Feeds and Feeding of Dairy Cow to include formulation of silage, kinds of grasses and legumes to be grown Prevention and control of Dairy Cow pest and diseases at UPLB Dairy Worker Immersion Artificial Insemination Attendance to Dairy Congress Kitchen base Milk processing, Pasteurization and Homogenizer(Immersion) Milk Processing (ice cream, yogurt, pastillas) Product development/Packaging and Marketing of processed dairy products Study tour on dairy farm and organic fertilizer plant Organic Fertilizer Production (Organic Fertilizer Plant Management, composting and Vermi Culture.

Provision of Common Service Facilities Type Milking machine Main machine 10/20 swing over milking machine Solar water heater for CIP Milking Parlour Milking Quality testing kit Milk cans Tire bath and footh bath with railings and main gate Water tank 3,000 w/elevated flatform Water drilling with Submersible pump Mechanical fan Electrical Connection w/20 to 30 KVA transformer single phase Raw milk chilling tank 500 liter capacity Milk meter Mobile milk tanker Processing Facilities a. Pasteurizer b. Homogenizer Quantity 1 Price per unit 1,500,000.00 Total Cost 1,500,000.00

1 1 1 100,000.00 600,000.00 10,000.00 20,000.00 1 60,000.00 100,000.00 600,000.00 10,000.00 20,000.00 60,000.00

1 1 1

40,000.00 120,000.00 10,000.00

40,000.00 120,000.00 10,000.00

1 1 1

200,000.00 500,000.,00 250,000.00 300,000.00

200,000.00 500,000.00 250,000.00 300,000.00

1 unit 1 unit Sub-Total

200,000.00 1,000,000.00 4,910,000.00

200,000.00 1,000,000.00 4,910,000.00

Monitoring and Evaluation This portion concerns the conduct of monthly review and planning sessions of the project by the different stakeholders.

7. PROJECT INNOVATION The project aims to accelerate dairy herd build-up and milk production, enhance dairy business through the delivery of technical services at farm and enterprise levels, increase the coverage of milk feeding programs to reduce malnutrition and mobilize broad support for local milk consumption. 8. CONTRIBUTION TO PBD PRIORITIES The project will address the overall PBD priorities: Support Services to ARBs through Gender-Responsive Capacity Development of ARBs/, Coaching/mentoring for core management staff of ARB organizations and ARB leaders. Development of gender responsive agri and non agri-enterprises Community based enterprises and livelihood Market entry of quality ARB food products Forging of tie-ups and contracts with markets

9. ROLES AND CONTRIBUTIONS OF OTHER AGENCIES AND PRIVATE INDIVIDUAL The partner agencies and service providers will be providing their support in terms of the following: National Dairy Authority shall provide the Technical Assistance in program Development on loan basis fifty (50)heads of dairy cow and two (2)bulls which shall arrived in two batches, machineries/equipments needed in the operation of the Dairy Farm operation and maintenance of a dairy farm, Technical Services in Program Implementation Department of Agrarian Reform (DAR) shall be responsible for the Organizational Strengthening of Malaya Development Cooperative to further equip them in the operation and maintenance of Dairy Farm and Organic Fertilizer Plant which shall be integrated in the dairy farm project. Isabela State University (ISU) and other private individuals with expertise on business management and financial management shall be tapped to provide services to the ARBO and other technical assistance needed. Philippine Network of Rural Development Institute, Inc. (Phil-Net RDI) A Non-Government Organization to provide a steady supply of organically grown corn (75 days)) for silage purposes. Mr. Romeo S. Bugarin of La Trinidad, Mallig, Isabela for the steady supply of forages (Napier grass, Centrosema) from his five(5) hectares more or less farm and grown out area. Cassava farmers within the municipality for the steady supply of cassava as feed supplement. Local Government Unit through its Municipal Agriculture Officer to teach on the Organic Farming and how to make Organic Fertilizer.

Department of Science and Technology (DOST) for the development of quality milk products, as well as the general aspect of processing, waste disposal, packaging and marketing of products. Department of Trade and Industry (DTI) for licensing, and promotion of products.

C. PROJECT MANAGEMENT 1. EXPERIENCE OF THE ARBO

The Malaya Development Cooperative (MDC) is a recipient of outstanding awards and citations form the DAR, other government unit and non-government organizations as attributed by its performance in providing services to its members and the community. Through the trainings of the officers and staff such Strategic Management for Social Enterprise, Risk Management, Micro-Finance and Disaster Preparedness, legal course, Skills training and farm mechanization, Immersion on Dairy Farm etc., the ARBOs capability will be enhanced and improved making them more capable of managing and sustaining their projects and businesses. 2. ROLES AND FUNCTIONS

The existing ARB Organization are duly organized cooperative is capable to manage and operate the agri-business enterprise. It has an existing business such as rice production and marketing, tractor operation, relending, cassava production and micro-finance. The ARB Organization shall be responsible in the operation and management of common service facilities to achieve the goal revenues of the dairy farm enterprise. The selected BDS-CBEO shall assist in the organization of the BDUs which shall depend entirely on the needs of the ARBOs. The BDU will serve as Core Management Team of the Dairy Enterprise. The ARBOs will monitor closely the use of common service facilities from their members and submit reports to the BDUs.DAR will closely monitor and supervise the activities of the BDS-CBEO to ensure the smooth implementation of the project. 3. SCOPE of WORK of the BUSINESS DEVELOPMENT SPECIALIST PROVIDER (BDS) The BDS provider must have legal personality to enter into contract with DAR and shall be able to deploy a competent Community-Based Enterprise Organizer (CBEO) who can provide technical assistance in the different fields such as: a. Organizational Capability to undertake organization strengthening and direction of the ARBOs in the formulation of its vision, mission, goals and objectives Multi-year SDP, basic policies, Systems and Procedures (PSPs)and synchronized physical and institutional development action plan; b. Organization of the ARBOs into Business Development units and formation of Core Management Team to manage the CSF.

c. Mobilization of different ARBOs to facilitate accomplishment of deliverables; d. skills to facilitate completion of appropriate documentary and technology requirement of the CSF; e. Technical Expertise to provide guidance in the conduct of business planning and contracting; f. Ability to coach the ARBOs in identifying strategies to achieve revenue goals of the enterprise; g. Building alliance and Networking to identify prospective buyers of the ARBOs products. h. Knowledge and experience on business management to ensure the appropriate control systems and mechanisms for the enterprise including prudent budgeting, timely recording, accounting and sound financial management; i. Ability to facilitate the preparation and implementation of sustainability plan that will serve as a guide for the ARBOs for the CBEOs eventual phase phase out. C. MONITORING & EVALUATION The DAR, together with the other stakeholders and in coordination with the ARBO, shall conduct regular monitoring and evaluation on a monthly basis to track the progress of accomplishments, performance and implementation issues and problems that need to be addressed, the prescribed monthly and quarterly reports shall be submitted to DAR Regional and Central Office, Project Management Office. Quarterly assessment /review and planning session shall be conducted with the participation of the ARBOs, BDUs and BDS-CBEO in the province. Performance Evaluation of BDS shall submit monthly and quarterly reports to indicate accomplishments, performance and implementation issues and problems that need to be addressed. D. SUSTAINABILITY MECHANISMS The capability of the ARBO officers and staff and the continuous support and patronage of the members of the community will sustain the viability of the project. The officers, management staff and membership of the ARBOs should undergo continuous education and training to enhance their knowledge and skills in advancing the development objectives of the project. Coordination and linkaging with other peoples organization and development organizations and institutions will enhance the capabilities of the officers and staff to enable them to sustain the gains of the project. E. COMMUNITY PARTICIPATION The Malaya Development Cooperative is partner of the community in terms of implementing economic activities. They are practicing the sixth cooperative principle which is concern for community and the allocation of three percent (3%) from the net surplus for community development purposes. The farmers and other residents within the operational areas are likewise patronizing and benefiting from the services and businesses of the ARBO. The project will be implemented in partnership with the National Dairy Authority and other government agencies and private institutions to seek and address the needs of the farmers.

F. PROMOTION OF GENDER EQUALITY The ARBO adhere in the cooperative practice that there is no discrimination as to gender in the membership and leadership in organization. Further, the ARBO recognize the equal rights and privileges of men and women in accessing and availing the various services and benefits accorded to eligible member- beneficiaries. G.PROMOTION OF SOUND ENVIRONMENTAL PRACTICES AND RISK ASSESSMENT Among the seven principles of cooperative is the concern for community wherein the proponent is adopting. The project proposed for implementation and, as well as those already implemented passed through the process of considering and ensuring environmental safety and soundness.

G. FUNDING REQUIREMENTS Major Budget Line items (1) Deliverables/ Specific Outputs (2) 2 days per week, coaching/ Mentoring/Tu torial/Hands on Training Estimated Total Cost (3) Contribution Of other Donors (4) Counterpart Contribution Proponent:Beneficiaries (5) : (6) Request from DAR

Organizational Development & Capacity Building

384,000 (192,000) Per year in two years 1,000.00 per session 384,000.00

384,000.00

Sub-total 1.Renovationof Building a. Office 1.Repair of ceiling 2.Repair of door &windows 3.Flooring works 4.lectrical works b.Silage room 1.Repair of ceiling 2.Repainting 3.Repair of door 4.Eletrical Works Concrete partition works c.Vermi Compost Room 1.Repair of ceiling

384,000.00

60,000.00

60,000.00

80,000.00

80,000.00

80,000.00

80,000.00

2.Repainting 3.Repair of door & windows 4.Electrical works 5.Concrete partition works d.Silage preparation area 1.Roof works 2.Flooring works 3.Repair of doors 4.Electrical works 2. Fabrication of G.I. Railings and treatment chute 3.Cow Shed (Lshaped) a.Roof works(G.Roof and metal trusses b.G.I. post c.Feeding and water through d.Lighting and other electrical works e.Paddocks rails and gates 4.Calf Shed 1.Roof works(G.I.Rof and metal trusses b.G.I post c.Feeding and water through Sub-Total

50,000.00

50,000.00

400,000.00

400,000.00

2,200,000.00

2,200,000.00

600,000.00

600,000.00

3,470,000.00

3,470,000.00

Major Budget Line items (1)

Deliverables/ Specific Outputs (2)

Estimated Total Cost (3)

Contribution Of other Donors (4)

Counterpart Contribution Proponent:Beneficiaries (5) : (6)

Request from DAR

Provision of Common Service Facilities a.Centralized Milking Parlour Facility 1.Main machine 1 unit 10/20 swing over milking machine 2.Solar water heater for CIP b.Milking Parlour(Renova ting a Standing Structure c.Milk quality testing kit d.Milk cans 2.Tire Bath and footh bath a.Concrete foot and tire bath with railing and main gate 1 unit

1,500,000.00

1,500,000.00

100,000.00

100,000.00

1 unit

600,000.00

60,000.00

1 unit

10,000.00 20,000.00

10,000.00 20,000.00

1 unit 60,000.00 60,000.00

3.Water Tank 3,000 liters with 1 unit elevated flat form 4.Water drilling with submersible 1 unit pump 1 unit 6.Electrical connection with 20 to 30 KVA transformer single phase

40,000.00

40,000.00

120,000.00

120,000.00

10,000.00

10,000.00

200,000.00

200,000.00

7.Raw milk chilling tank 500 liter capacity 8.Milk meter, for measuring individual performance in the milking parlour 9.Mobile Milk tanker 10.Processing Facilities a.Pasteurizer b.Homogenizer Sub-Total

I unit

500,000.00

500,000.00

1 unit

250,00.00

250,000.00

1 unit

300,000.00

300,000.00

1 unit 1 unit

200,000.00 1,000,000.00 4,910,000.00

200,000.00 1,000,000.00 4,910,000.00

Technology Training 1.Artificial Insemination 1 training per year for 3 years 7 days training, 5 pax, at 7,625 per pax 1 day training 13 pax at 257.13 per pax, 14 pax 3.Dairy Worker 2 weeks Immersion training at Sta.Maria, Bulacan, at 18,000 per pax, 5 pax 78,000.00 78,000.25

2.Silage Making

30,500.00

30,500.00

3,600.00

3,600.00

90,000.00

90,000.00

4.Attendance to 3 days per Dairy Congress year at 3 years, at 3 pax, 7,000 per pax per year 5.Kitchen base milk processing Pasteurization/ Homogenizer 5 days training at San Ildefonso, Bulacan

63,000.00

63,000.00

54,000.00

54,000.00

6. Milk Processing (ice cream, yogurt, pastillas)

5 days training, 2 processing personnel

17,000.00

17,000.00

7.Marketing and 5 days Packaging training, 2 marketing personnel 8.Organic Fertilizer Production a.Organic Fertilizer Plant Management b.Composting (community Based) c.Vermi Culture (community based) 5 days training at Negros Occidental 3 pax

27,000.00

27,000.00

53,600.00

53,600,00

1 day traning, 9 pax 7,000.00 1 day training,15 pax 4,600.00

424,300.00

7,000.00

4,600.00
424,300.00

Monitoring & Evaluation 1.Conduct of Monthly Review 3 years and Planning 12 months Session 20 pax/mo Sub-Total Total

250,000.00

50,000.00

50,000.00

150,000.00

250,000.00 9,438,300.00

50,000.00 8,430,000.00

50,000.00 50,000.00

150,000.00 574,300.00

H. WOK PLAN Activity J Meeting/Consultation Validation of Project Conduct of Orgl & Cap Building through Coaching/Tutorial/Mentoring/ Hands on Training, Advocacy & Promotion Establishment and Repair of Dairy Housing Conduct of Technology Training Conduct of Exposure Trip Procurement of Facilities Conduct of Skills Training Conduct of Review Planning Session Monitoring and Evaluation F M A M J 2012 J

Activity J Meeting/Consultation Validation of Project Conduct of Organizational & Cap Building through Coaching/Tutorial/Mentoring,Nodperforming Advocacy & Promotion Establishment of Dairy Housing Conduct of Technology Training Conduct of Exposure Trip Procurement of Facilities Conduct of Skills Training Conduct of Review Planning Session Monitoring and Evaluation F M A M

2013 J J

Activity J F M A M J

2014 J

Attachment 1. TARGET MAJOR FINAL OUTPUTS (MFOs) Major Final Outputs Performance Indicator Programs,Activities/Projects (PAPs) MFO3:Support Services Implemented,Facilitated and Coordinated for Delivery to Program Beneficiaries Program Beneficiaries Development (PBD) A. Support Services to ARBs 1.Social Infrastructure and local Capability Building(SILCAB) a. Gender-Responsive Capacity No.of ARBs Trained Development of ARBs/ARB Organizations Target Accomplishment