CAGAYAN DE ORO CITY -- Five (5) agrarian reform beneficiary organizations (ARBOs) from the provinces of Misamis Oriental and Bukidnon in Northern Mindanao recently signed a memorandum of agreement (MOA) with Daesang Philippines Corporation for the cooperatives to have an alternative and assured market for their quality cassava products.

Daesang Philippines Corporation is a South Korean food manufacturing company, with a base of operations located in Pasig City. It is also engaged in the business of cassava starch production, with plans to build a processing plant inside the PHIVIDEC Industrial Estate in Tagoloan, Misamis Oriental, with a target daily capacity of 500 metric tons. 

DAR-Northern Mindanao Regional Director Zoraida Macadindang said the MOA signing was jointly hosted by the DAR, Department of Agriculture, Department of Trade and Industry, and the local government unit of Region 10.

“The MOA involves the production of cassava by the ARBOs based on the specifications required by Daesang, who will directly buy the cassava from the cooperative,” Macadindang said.

Daesang proposes to implement the cassava processing project, where its business requirements can provide livelihood, production, and income opportunities for the cassava farmers of Northern Mindanao.

Macadindang said the DAR has committed to provide farm inputs, tractors, hauling trucks, and other equipment, access to financing for production, and marketing and marketing assistance as support services components to the project.

Price as per agreement is at PHP 4.00 per kilo with the LGU and the DA to serve as independent consultants who will provide a list of benchmark market price references to be used during the price negotiations.

The participating ARBOs who signed their respective MOAs were the Mindulao Agrarian Reform Community Cooperative of Magsaysay, Misamis Oriental, the Kabangasan-Mapua-Dahilig Agrarian Reform Community Cooperative of Balingoan, Misamis Oriental, the Sampatulog ARB Farmers’ Cooperative of Alubijid, Misamis Oriental, the Mantibugao ARB Farmers’ Cooperative of Manolo Fortich, Bukidnon and the BLISS Lingion Multipurpose Cooperative of Manolo Fortich, Bukidnon.

“We are thankful for the marketing agreement with Daesang, as this will encourage us, farmers, to engage in the planting of more cassava with an assured buyer for our products. With the collaborative efforts of different government agencies in making this a reality, we sincerely hope that our business venture with the company will be sustained,” Kabangasan-Mapua-Dahilig Agrarian Reform Community Cooperative of Balingoan, Misamis Oriental (KMDCC) outgoing chair Erlinda D. Cagmat said.

The agreement she said is the first step towards a bright future with local farmers and consolidators. 

“Our tapioca plant will hire local talent and purchase local raw materials. In addition, we look forward to the development of our company. We will create a bright future by combining our company and the community to develop the cassava industry together,” he added. (DAR)