Davao City – The Mindanao Development Authority (MinDA) and its financing partner, the Development Bank of the Philippines, yesterday agreed to work on a financial loan package which would allow Lanao del Sur Cassava farmers access to a P240-million loan facility for an expansion program covering 8,000 hectares.
In a meeting yesterday at the MinDA headquarters in Davao City attended by DBP officials, representatives of the Matling Industrial and Commercial Corporation which owns two Cassava starch processing facilities in Matalin, Malabang, Lanao del Sur and key MinDA officials, it was agreed that the financial loan package is needed to maximize the utilization of two factories established by MICC.
The expansion program which would cover 8,000 hectares in several towns in Lanao del Sur is also aimed at reducing poverty in the province which has the highest poverty incidence in the country at 69%.
The proposed expansion area will complement the existing production fields totalling 3,500 hectares.
MICC official Sally Mancilla said the company has built a second processing facility worth P400-M which is not operating because of lack of Cassava tubers.
A Cassava farmer is projected to earn about P70,000 per hectare by planting the recommended variety of MICC, Lakan 1, which has a very high starch content.
Cassava Starch is used for food processing and also industrial uses.
The financial loan package will propose a low-interest loan of P30,000 per hectare for 8,000 hectares.
A marketing agreement between the farmers and MICC will be the critical document which would ensure the viability of the loaning program.
MICC has also requested MinDA to facilitate the opening of a DBP branch in Malabang town, preferably within the MICC compound to serve the needs of the thousands of farmers and the company itself which has been operating in the area for over 90 years.
The nearest banks for the farmers and MICC are located in either Cotabato City and Pagadian City leading farmers to encash their checks with rediscounting outlets thus reducing their income.
DBP President Emmanuel Herbosa has promised to support the project and look into the viability of establishing a DBP branch in Malabang.
(Photos by the MinDA Media Team and Mayette Tudlas, MinDA OC.)
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