Republic of the Philippines
DEPARTMENT OF AGRICULTURE
Philippine Center for Postharvest
Development and Mechanization
CLSU Compound, Science City of Muñoz, Nueva Ecija

NEWS STORIES

PHilMech turns over first completed shared processing facility to Surigao farmers group
by Jett Molech G. Subaba (September 11, 2024)
A coconut-based farmers’ group in Placer, Surigao del Norte is the recipient of the very first shared processing facility (SPF) completed by the Philippine Center for Postharvest Development and Mechanization (PHilMech) under the SPF component of the Coconut Farmers and Industry Development Plan (CFIDP).

Turned over last September 11 to the Mabini United Farmers Cooperative is a facility worth P5.17 million, established on land owned by the group that has 127 members who are all coconut farmers.

PHilMech Director IV Dr. Dionisio G. Alvindia said the turnover of the facility is a milestone for both the agency and members of the Mabini United Farmers, as the SPF is the very first in the Philippines to be completed under the CFIDP.

“Today or September 11 is a historic day for both PHilMech and the Mabini United Farmers Cooperative, as the coconut farmers in this town of Placer in Surigao del Norte are the recipient of the very first SPF to be completed by the agency under the CFIDP,” he said.

Director Alvindia added that Surigao del Norte is winning the war against poverty and that the P5.17-million coco peat and geonet production facility will further help the province lift more coconut farmers from poverty.

“Through the P5.17-million facility, the Department of Agriculture, the Philippine Coconut Authority, and we at PHilMech are contributing to the continued fight of the people of Surigao del Norte against poverty,” he said.

With geonet and coco peat having a big demand, PHilMech pegged the internal rate of return for the facility at 171.74 percent. The project is expected to generate a return of 10.30 pesos for every peso investment made with a payback period of 0.61 year. In this case, the relatively short payback period suggests the project can generate sufficient cash flows to cover its initial investment within a reasonable timeframe.

Director Alvindia said that once production commences, the facility will also reduce the volume of coconut husks that are mostly discarded as farm waste.

The facility will require 5,000 coconut husks per production run, each purchased at P0.50 from coconut farmers, as input. Coconut husks are usually thrown away as waste or used to produce charcoal.

The establishment of the coconut processing facility in Surigao del Norte is part of the Shared Service Facility component under the Coconut Farmers and Industry Development Plan (CFIDP).