DAVAO CITY -- Pastry and bakery companies in the Autonomous Region in
Muslim Mindanao have inquired into a possible agreement with a
cooperative based in Kapalong town, Davao del Norte for steady supply of
banana flour.
"[The companies] were asking about whether the cooperative can supply 10
bags of banana flour per week," Vedastito C. Galvez, acting provincial
director of the Department of Trade and Industry (DTI)-Davao del Norte,
recently told BusinessWorld.
He, however, declined to reveal the names of the companies without the
go signal from AMS Employees Fresh Fruits Producers Cooperative in Davao
del Norte.
The cooperative, he said, can produce five metric tons of food grade and
15 tons of flour classified as feed grade each month.
Last year, the cooperative generated P1.5 million in revenues from
food-grade flour sold at P15 per bag. Industrial flour is sold at P8 per
bag.
Last year, the Trade department has matched the cooperative's banana
flour with Le Jardin Food and Home Industries in Tacloban City with an
average monthly supply of eight bags, although the demand could easily
increase depending on the results of the initial deliveries.
Since it started in 2002, the cooperative's assets has grown to P25 million.
The cooperative's 97 agrarian reform beneficiaries has a total aggregate
farm area of 72 hectares planted with export-grade Cavendish bananas in
Kapalong.
Just recently, Mr. Galvez said Nutriasia has again started buying
food-grade banana flour from the cooperative for its UFC banana catsup
with an initial sale of P50,000 due to the improved capacity and
enhanced quality of the product.
However, he said the transaction stopped for a while in 2010 because the
flour's quality failed to meet the standards set by the company.
The cooperative then improved the quality of its product through the
assistance of the Department of Science and Technology (DoST) in Davao
Region under its Small Enterprise Technology Upgrading Program.
The agency allocated half a million pesos for the purchase of a hammer
mill and a chipping machine allowing the cooperative to boost production
fivefold from the initial one ton per month.
The Davao Food Safety Team of the DoST-11 also helped in the plant
layout of the cooperative to adhere to good manufacturing practices.
Due to the high demand, the cooperative has graduated from a mere
supplier to a consolidator acting as a middle man between other
suppliers and business clients.
"Supply's monthly requirement is 50 tons, which will generate total
monthly sales of P450,000," Mr. Galvez explained.
Rizalie B. Calma, the former manager of the cooperative, said the
officials saw the need to improve the quality of its product after
recognizing the potential of banana flour intended for manufacturing
catsup, organic fertilizer or livestock feeds.
"Before, rejected bananas were just thrown away, left rotten, used as
food for hogs, given to indigenous peoples in the hinterlands," she said.
The cooperative's success earned it several awards such as the Gawad
Saka Award. -- Joel B. Escovilla
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