Cassava Contract Growing

Many cassava farmers in the Philippines seem to be complaining about the low demand and price of their products, which is one of the reasons why many believed there is a declining stock of food and cash crops in the country. These farmers are also of the opinion that there are not enough buyers for cassava tubers, even if they produce the crop in large quantity.

However, unknown to these farmers, San Miguel Foods, Inc. (SMFI) FEEDS Agribusiness Development and Operations Group is developing a sustainable sourcing program of its agri-based raw materials requirements which for now calls for the mobilization of at least one (1) million hectares of farm lands in the Philippines.

SMC is showing its commitment to help develop the countryside by providing livelihood opportunities in rural communities with the introduction of alternative crops and the improvement of farm technologies and income. They are interested in developing partnerships for the domestic production of cassava, sorghum, sweet potato and other crops for our feed mill facilities nationwide.

For their flagship cassava program, SMFI Agribusiness provides:

• Guaranteed market with a marketing agreement according to mutually agreed product quality, volume and delivery schedule;
• Guaranteed floor price;
• Start-up technical assistance in production, post-harvest and logistic operations.

SMFI Agribusiness is looking for assemblers/consolidators with the following characteristics:

• Persons who are already into or willing to go into large-scale cassava production;
• Can provide technical and financial assistance to their farmer proponents;
• Has post-harvest facility and preferably with access to logistics services;
• Can consolidate volumes from farmers and ensure delivery to SMFI.

An assembler can be an individual entrepreneur, a corporation or farmers’ cooperative that has the capacity to consolidate at least 20 hectares for cassava production.

Guidelines for SMFI Cassava Contract Growing

Preliminary Requirements

• Letter of Intent to join the program;
• Photocopy of Certificate of Ownership/Lease of Authority from DAR/DENR or other concerned government agencies (TCT/CLOA/CFSA/Lease Agreement) ;
• Photocopy of Certificate of Security and Exchange Commission Registration/CDA or DTI Registration/Board Resolution (authority to negotiate) for corporations and cooperatives;
• Property vicinity map;
• Suitability of site (subject to inspection by an SMC representative)
  
  
  • Topography;
  • Soil Classification;
  • Farm to Market road accessibility;
  • Effective arable area

Requirements per Contract

• Memorandum of Agreement (MOA)
  
  
  • Effective arable area of at least 20 hectares;
  • Area Development Plan for three (3) years