ANALYSIS OF THE CHARCOAL VALUE CHAIN IN CITY (Final Report)

BUILDING LOW EMISSION ALTERNATIVES TO DEVELOP ECONOMIC RESILIENCE AND SUSTAINABILITY PROJECT (B-LEADERS)

September 2017

This document was produced for review by the United States Agency for International Development (USAID). It was prepared by the Building Low Emission Alternatives to Develop Economic Resilience and Sustainability (B- LEADERS) Project implemented by RTI International for USAID .

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN (Final Report)

BUILDING LOW EMISSION ALTERNATIVES TO DEVELOP ECONOMIC RESILIENCE AND SUSTAINABILITY PROJECT (B-LEADERS)

September 2017

DISCLAIMER

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

TABLE OF CONTENTS TABLE OF CONTENTS ··································································· I

LIST OF TABLES ········································································ III

LIST OF FIGURES ······································································ III

ACRONYMS ················································································ IV

EXECUTIVE SUMMARY ································································· 1

I. INTRODUCTION ································································ 4

1.1. Objectives ...... 6 1.2. Scope and Limitations ...... 6 II. METHODOLOGY ································································ 8

2.1. Study Site ...... 8 2.2. Sampling Requirements ...... 11 2.3. Value Chain and Data Collection ...... 11

2.3.1 Iloilo City Energy Consumption...... 13

2.3.2 Overall CVC Survey ...... 14

2.3.3 Charcoal Production Survey ...... 14

III. RESULTS AND DISCUSSION ··············································· 15

3.1 Charcoal Making Process ...... 15

3.1.1 Charcoal Usage and Forest Conversion ...... 15

3.1.2 Tree Species Used ...... 15

3.1.3 Technologies ...... 16

3.1.4 Production Process ...... 17

3.2 Value Chain ...... 17

3.2.1 Wood Production ...... 18

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY i

3.2.2 Carbonization and Packaging ...... 19

3.2.3 Transport and Trading ...... 19

IV. CONCLUSION AND RECOMMENDATIONS ·························· 21

V. REFERENCES ··································································· 22

VI. ANNEXES ········································································· 23

ANNEX A. Survey Questionnaire ...... 24 ANNEX B. Supporters and Respondents...... 30 ANNEX C. Photos ...... 32

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY ii

LIST OF TABLES

Table 1. Stakeholders and Data Collection along the Charcoal Value Chain ...... 12

Table 2. Energy Consumption of the City of Iloilo per Fuel Source ...... 14

Table 3. Annual Usage of Charcoal in Iloilo City and Associated Forest Conversion ...... 15

Table 4. Tree Species Used in Charcoal Production in Iloilo and ...... 16

LIST OF FIGURES

Figure 1. Location Map of the Province of Iloilo ...... 9

Figure 2. Location Map of the Province of Guimaras ...... 10

Figure 3. Elements of the Charcoal Value Chain (process in reverse)...... 11

Figure 4. Methods in Charcoal Production ...... 17

Figure 5. Market Flow of Charcoal ...... 18

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY iii

ACRONYMS

B-LEADERS Building Low Emission Alternatives to Develop Economic Resilience and Sustainability Project

CDI Cities Development Initiative

CVC Charcoal Value Chain

DAO Department Administrative Order

DENR Department of Environment and Natural Resources

DENR-PENRO Department of Environment and Natural Resources- Provincial

Environment and Natural Resources Office/Officer

DENR-CENRO Department of Environment and Natural Resources- Community

Environment and Natural Resources Office/Officer

FUU Forest Utilization Unit

GCFFMPAI Guimaras Charcoal, Fuelwood, Firewood Maker/Producer Association, Inc.

GHG Greenhouse Gas

LEDS Low Emission Development Strategies

LGU Local Government Unit

LPG Liquefied Petroleum Gas

USA University of San Agustin

USAID United States Agency for International Development

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY iv

EXECUTIVE SUMMARY

Charcoal is an important commodity both in the rural and urban areas in the Philippines. In Iloilo City, charcoal plays a very important role as fuel used for cooking and grilling in households and some commercial establishments. It is a source of income for people with meager income especially those in far flung barangays in the Province of Iloilo and Guimaras.

Most households in the city use charcoal for cooking, while others also use Liquefied Petroleum Gas (LPG). Most low-income households use charcoal packed in small quantities that are sold in sari-sari (variety) stores or in the district markets. Though high-income households use either LPG or electricity for cooking, they also use charcoal for grilling.

The City of Iloilo is a fast growing city in the Philippines. It has been known to be the country’s home of grilled delicacies. Hence, the practice of grilling is common in different commercial establishments and even in small businesses along the city streets. The first Mang Inasal chain restaurant was established in the city, with now a total of 15 outlets in the six districts of Iloilo City. Luzon-based restaurants such as Andoks and Baliwag and Ramboys Grill of Numancia, have also established their branches in the city. Meanwhile, other small players are still ubiquitous in the city.

Government regulations such as Department of Environment and Natural Resources (DENR) Administrative Order (DAO) No. 79, DAO No. 07 and DAO 99-20 are strictly being implemented by DENR’s Provincial Environment and Natural Resources Offices (PENROs) to regulate the cutting of trees for charcoal production and issue permits to transport the charcoal products. But because of the increasing demand of households in Iloilo City, charcoal transporters, who act as agents still deliver sacks of charcoal from different locations to the city after complying all the requirements of DENR- PENRO. Furthermore, there has not been enough policies at the local government unit (LGU) level that regulate how charcoal is being produced, transported and sold. Hence, the need to develop a baseline Charcoal Value Chain (CVC) study.

Information gathered in the Iloilo City energy consumption survey were used to identify the main charcoal markets in the City of Iloilo. These are the retail and wholesale markets located in the six districts of Iloilo City, namely, Arevalo, City Proper, Jaro, La Paz, , and Molo; including charcoal production sites in Iloilo Province and Guimaras Province. These sites were visited to observe how charcoal is transported. The survey questions focused on prices, value-adding activities at that level, and costs incurred. The data were then analyzed to indicate profitability levels along the chain. To determine the volume of charcoal production from the source, the size of active charcoal

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 1

sites was measured and the technology used was recorded (from the preparation, carbonization to packing, the time and the number of sacks of charcoal produced). The species of trees used in charcoal production were also gathered and recorded from the different charcoal sources in Provinces of Iloilo and Guimaras.

Based on the preceding two surveys on energy consumption and charcoal value chain, the main charcoal producing areas were identified. A total of 13 municipalities in the Province of Iloilo and five municipalities in the Province of Guimaras are producing charcoal, which supplies around 28.05 percent of the total energy consumption both in households and commercial establishments in Iloilo City. Specifically the study found that 71.76 percent of Iloilo City households use charcoal for cooking. This means that it requires a land clearing of 1.36 ha per year of wood land to supply the city’s charcoal needs.

About 70 to 80 percent of the charcoal consumed in Iloilo City are produced in the Province of Guimaras. The native Sibucao trees (Caesalpinia sappan L.), which grow abundantly in Guimaras, turn out to be choice for charcoal making because of its commercial demand. In both provinces, the common tree species used are Mahogany (Swietenia mahogani), Gmelina (Gmelina arborea Roxb.) and Mangium (Acacia mangium). From the value chain, it was found out that the transporters and retailers earn more from the charcoal than the charcoal producers. As for the economic value of every six cans or a sack of charcoal: the transporter/agent earns Php70 per sack while a wholesaler earns Php 50 to 70 per sack. If the seller is also a retailer who sells the charcoal in small quantities (0.93 kg) at Php 20 per plastic bag (30 plastic bags/sack), the wholesaler earns Php 100 to 250 per sack.

It is recommended that DENR-PENRO and the respective LGUs act together to implement short- and long-term interventions to ensure that the consumers, specifically the low-income households can still have access to cheaper forms of energy, given that the price of LPG in the market nowadays is not stable. The practice of sustainable charcoal production must be implemented in the charcoal producing areas to avoid compromising the environmental impacts that may occure in the charcoal production process. Research studies conducted must also focus on the upgrading the charcoal production technology. Lastly, the charcoal industry must be legalized and regulated in order to eliminate illegal deals and to help the charcoal produces get their due as they are directly affected for having the least profit among the players in the charcoal value chain.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 2

I. INTRODUCTION The Building Low Emission Alternatives to Develop Economic Resilience and Sustainability Project (B-LEADERS) serves as the anchor program that promotes the US government’s Enhancing Capacity for Low Emission Development Strategies (EC-LEDS) in the Philippines. The ultimate goal of the project is to strengthen the capacity of the Philippine government and its key partners to plan, design and implement Low Emission Development Strategies (LEDS) in the energy and transport sectors and to a certain extent, the forestry/land-use sectors. The activities under B-LEADERS are based on the climate change mitigation priorities of the Government of the Philippines and are designed to contribute to increased climate change resilience and mitigation.

The Philippine Climate Change Act of 2009 guides the Philippine Government in implementing measures to address climate change in the context of sustainable development. The law recognizes the significant role that local government units (LGUs) play in formulating and implementing local climate change action plans (LCCAPs) that support national policies and frameworks. To properly identify and prioritize greenhouse gas (GHG) emission reduction or sequestration measures, the first key step is the conduct of a baseline GHG inventory. A GHG inventory allows LGUs to account for emissions from different sources such as energy use, industrial processes, waste, deforestation, and those that absorb carbon dioxide from the atmosphere such as forests.

As part of the United States – Philippines Government’s Partnership for Growth, USAID provides technical assistance to select LGUs to identify opportunities to strengthen economic competitiveness and resilience through the Cities Development Initiative (CDI). To support second-tier cities in achieving low emission development, USAID through B-LEADERS supports selected cities in training LGUs to conduct GHG inventories and provides technical assistance in preparing GHG inventory reports. Such reports may guide LGUs in prioritizing activities that will lead to significant impacts on environmental, economic, and social well-being of the city and its residents.

USAID previously supported the City Government of Iloilo in conducting its GHG inventory for base year 2012. The city government learned the city emitted a total of 1,007,987 tCO2e for the period covering January 1 to December 31, 2012 wherein the energy sector contributed to more than 90% of the total GHG emissions. B-LEADERS has continued to support the city in updating its community-level (citywide) GHG inventory while addressing improvements in data collection especially those that have not been previously available. Among such datasets is a profiling on the use of charcoal and how it is made and supplied to residential and commercial users in the city.

Iloilo City is also a bustling city teemed with commercial establishments, which feature grilled fish, chicken and pork in its menu. Grilling is mostly found in establishments inside malls or along the coastal areas of the Arevalo and Jaro Districts as well as in small vendors selling street foods along the city streets. The first Mang Inasal chain restaurant established is located in the city, which now makes

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 4

up a total of 15 outlets within the six districts of Iloilo City. Branches of Andok’s Restaurant and Baliwag Lechon, which are originally Luzon-based, can also be found in the city. Other commercial establishments that use charcoal include three branches of Numancia, Aklan-based Ramboys Grill and other small players in the food trade.

Charcoal is an important commodity not only in the rural areas but in the urban areas in the Philippines as well. In Iloilo City, charcoal is often used as fuel for cooking in households and is used in grilling in some commercial establishments. From the recent GHG Emission Inventory for Charcoal survey done by the University of San Agustin (USA) GHG Team, 71.76 percent of the households in Iloilo City use charcoal in cooking their food, which is often used in combination with LPG. Low-income households have a higher per capita charcoal consumption based on the results of a previous study conducted by USA in 2011. Charcoal is followed by LPG, fuel wood, and electricity. Recently, butane gas packed in small 220-gram cylinder cans drew attention not only to street food vendors but also to households who found it more convenient and economical. Some students don’t use charcoal in cooking but find LPG too expensive use butane gas as alternative cooking fuel. According to the 2011 study, only high-income households can afford to cook in electric hot plates. Even medium-income households use dual source of energy to cook their meals, e.g., combination of LPG and charcoal. Low-income households who cannot afford to buy LPG but are used to charcoal pay a higher price per kilo for the charcoal because they buy it in smaller packages priced proportionate to their spending power from retailers such as sari-sari (variety) stores.

Initial assessments reveal that no charcoal is actually produced from the city itself; the commodity is sourced out from the municipalities in the neighboring Provinces of Iloilo and Guimaras. There are several municipalities in the Province of Iloilo that produce charcoal and are delivered to some district markets of the city and to commercial establishments that need huge quantities of sacks of charcoal for grilling. Charcoal from the province mostly come from the municipalities of San Joaquin, , and in the south; Leon, , Maasin, , and in the central part; and , Ajuy, and Lemery in the northern part. Meanwhile, all the municipalities in the Province of Guimaras, namely, Buenavista, Jordan, Nueva Valencia, San Lorenzo, and Sibunag deliver its charcoal products to commercial establishments along the coastal areas of Iloilo City – from Brgy. Santo Niño Norte in Arevalo – to Brgy. Bito-on in Jaro. Charcoal production has been a source of livelihood for some people and communities with meager income, especially in the far-flung barangays of these provinces. Still, typical charcoal producers have difficulty sending their children to school and feed their families by just producing charcoal, hence its social dimension.

B-LEADERS engaged Independent Contractors to provide technical assistance in the updating of the community-level GHG Inventory. A critical component of the inventory is the establishment of activity data for charcoal usage in the city that can be used as basis for future policy on sustainable charcoal utilization. This study entitled: “Analysis of the Charcoal Value Chain (CVC) in Iloilo City” is carried out to supplement the GHG Inventory requiremements while at the same time establishing the possible implications of charcoal production to forest resources.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 5

1.1. Objectives

The purpose of this study is to conduct an assessment of the charcoal production, trade and consumption in Iloilo City with the following objectives: a. To determine the sources of charcoal sold in the City of Iloilo for cooking and grilling; b. To quantify the charcoal consumption for cooking and grilling in Iloilo City; c. To establish a clear order in the CVC of the main players and understand where and how charcoal is produced, marketed, and consumed; and d. To establish a sound basis for reviewing policies, enforcement and other actions for the local government of Iloilo City.

1.2. Scope and Limitations

Information on charcoal trading were gathered from vendors from retail and wholesale markets located in the six districts of Iloilo City: Arevalo, City Proper, Jaro, La Paz, Mandurriao, Molo and Lapuz. Meanwhile, elements of charcoal production were documented based on selected sites in the Provinces of Iloilo and Guimaras. The study also looked at how charcoal is transported.

The scope of the study covers the entire province of Iloilo and the entire island of the Province of Guimaras. All steps identified in the CVC were considered, including the technology and the species of trees used in the production of charcoal. The time frame for doing the survey was limited to vacant hours from school of the independent contractor and was short to cover the two provinces to get all the needed data for the study. Visits to DENR Community and Natural Resources Offices (CENROs) in the Province of Iloilo resulted in very good outcome especially on the northern part. However, permitees were hard to find. Those having large volume of charcoal produced and transported were the ones interviewed but the small producers or transporters were not.

In the Province of Guimaras, the only hindrance was the weather in travelling to and from the province because motorized ferry boats were the mode of transportation to Guimaras Island from Iloilo City and vice versa. Last July, the rainy season was officially announced and this added to the limitations of the study; scheduled visits were unavoidably cancelled. The author resorted to depending on the data provided by the DENR-PENRO Guimaras regarding the quantity of sacks of charcoal transported from Guimaras to Iloilo City by the permitees/ transporters. The only person interviewed

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 6

was the President of the Guimaras Charcoal, Fuelwood, Firewood Maker/ Producer Association, Inc. (GCFFMPAI). The association has 50 members at present. The president is both a charcoal producer and transporter who has been in the charcoal business for 25 years. The technology from Guimaras for the production of small number of sacks of charcoal was already documented in the early part of the study and on the last day of the study. The production of 50 sacks documented was provided by the president of GCFFMPAI.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 7

II. METHODOLOGY

Charcoal is commonly used fuel for cooking, grilling, and boiling in most households in the rural and urban areas in Iloilo City based on the Air Quality Emission Inventory (Area and Household Sources) conducted by the University of San Agustin in 2011. Although there had been regulations in the different local government units in the Provinces of Iloilo and Guimaras to minimize the cutting of trees for charcoal production, the demand from households and commercial establishments in Iloilo City drive transporters to deliver numerous sacks of charcoal into the city. Surprisingly, policy makers have limited knowledge on how and from where charcoal is produced, transported, and sold. It was observed that charcoal does not receive a much policy attention the reason why there is a need to develop baseline data for this study.

2.1. Study Site

During the survey of charcoal consumption in the City of Iloilo, the sources of charcoal were also determined in the Provinces of Iloilo and Guimaras using a survey form attached in Annex A. Next was the scheduling and plotting of the map of both provinces and the municipalities to be visited. The Forest Utilization Units (FUUs) of the DENR-CENRO offices list down the names of the permittees and records the volume of charcoal produced and transported.

The municipalities in the northern part of Iloilo considered were the Municipalities of Ajuy, Barotac Viejo, Lemery and San Rafael. The town of Ajuy is a second class municipality in the Province of Iloilo, Philippines. According to the 2015 census, it has a population of 52,268 people. Ajuy is 88 km from Iloilo City. Barotac Viejo is a third class municipality in the Province of Iloilo, Philippines. According to the 2015 census, it has a population of 45,808. Barotac Viejo is 57 km from Iloilo City. On the other hand, Lemery is a fourth class municipality in the Province of Iloilo. According to the 2015 census, it has a population of 30,851 people. Lastly, San Rafael is a fifth class municipality in the Province of Iloilo. It is bordered by Dumarao to the north, Lemery to the east, Barotac Viejo to the south, and Passi City to the west.

In the central part of the Province of Iloilo, the municipalities considered in the study are Leon, Alimodian, Maasin, Janiuay, and Lambunao. Leon is a second class municipality in the province of Iloilo, Philippines. Located in the southwestern part of Iloilo Province, it is 36 km from Iloilo City. According to the 2015 census, it has a population of 49,875. Adjacent to Leon is Aimodian. It is a third class municipality in the province of Iloilo, Philippines. According to the 2015 census, it has a

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 8

population of 38,408. It has a total land area of 14,482 ha, making up 2.89 percent of the provincial land area of Iloilo. Maasin is a fourth class municipality in the province of Iloilo, Philippines. According to the 2015 census, it has a population of 36,922. Janiuay is a first-class municipality in the province of Iloilo. According to the 2015 census, it has a population of 63,905. The municipality is located 33 km north-west of Iloilo City. It was created in 1769. Another first-class municipality in the Province of Iloilo is Lambunao. According to the 2015 census, it has a population of 73,640. Lambunao is the largest municipality in Iloilo in terms of land area and is 47 km from Iloilo City.

ILOILO CITY

Figure 1. Location Map of the Province of Iloilo

The southern municipalities in the study site are San Joaquin, Igbaras, and Tigbauan. The southernmost is the Muncipality of San Joaquin. It is a first class municipality in the province of Iloilo. According to the 2015 census, it has a population of 51,892. It is 53 km from Iloilo City. Located at the south-western part of Iloilo is Igbaras, a third class municipality in the province of Iloilo, Philippines. According to the 2015 census, it has a population of 32,004 people. It is situated 40 kilometres from Iloilo City. Guimbal is a fourth-class municipality in the province of Iloilo, Philippines. According to the 2015 census, it has a population of 33,820 people. It is 29 km from Iloilo City, and has a total land area of 4,461 hectares. Tigbauan is a second class municipality in the province of Iloilo, Philippines. According to the 2015 census, it has a population of 62,706 people. Tigbauan is a second

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 9

class municipality in the province of Iloilo. According to the 2015 census, it has a population of 62,706 people. It is 22 kilometres from Iloilo City.

Figure 2. Location Map of the Province of Guimaras

Meanwhile, Guimaras is an island province in the Philippines located in the region of . Its capital is Jordan. The province is situated in the Gulf, between the islands of Panay and Negros. The population of Guimaras in the 2015 census was 174,613, with a density of 290 inhabitants per square km. Presently, Guimaras is comprised of the Municipalities of Buenvista, Jordan, Sibunag, San Lorenzo and Nueva Valencia. Located southeast of Panay, Guimaras is separated from Iloilo by the , a narrow channel which takes about fifteen minutes to cross by pump boat from Ortiz in Iloilo City to Jordan, Guimaras. Other ferries leave from the Parola wharf in Iloilo City to Buenavista. The Parola wharf is used exclusively during rough weather conditions especially by ferries from Jordan to Ortiz. A roll-on/roll-off (RORO) ferry travels around five times a day but is mostly used to transport cargos such as sacks of charcoals and root crops from Guimaras to Iloilo.

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2.2. Sampling Requirements

From the 42 municipalities and a component City of Passi of the Province of Iloilo, 13 municipalities or about 30.95 percent were considered in the study. Based on the records of the DENR-CENRO offices, the targeted municipalities which names appeared in the GHG Emission Inventory 2017 also corresponds to the municipalities having the highest record of charcoal volume transported to Iloilo City. A survey questionnaire was designed for the charcoal producers, charcoal trasporter/trader and wholesaler/retailers. Direct or interview method was used in order to provide consistent and more precise information from the stakeholders or the players of the charcoal value chain.

A minimum of two charcoal producers from each municipality are considered regardless they are involved in either large or small production. Same sampling requirement was conducted for the transporters/traders. Charcoal consumption data were taken from the wholesalers/retailers in the City of Iloilo.

2.3. Value Chain and Data Collection

Value chain analysis examines the sequence of chain links of production activities (value-adding) from the charcoal producer to the consumers. It explores the structure and the performance of the market. In this study, charcoal is found to be a primary energy source and is considered to be a highly commercialized commodity despite of the many energy sources in the market. The analysis includes (1) identifying the main players of each chain link, (2) determining costs players incur at each transaction, (3) exploring opportunities at each chain link, and (4) identifying services at each chain link as charcoal moves from production to consumption. The main objective in value chain analysis is to understand the economics of the charcoal industry and how it functions. A CVC methodology was developed and customized for this study. Figure 3 shows the CVC commencing with charcoal consumption and tracing back to charcoal origins. Stating with charcoal consumers enables GHG accounting data to be collected for the City of Iloilo wherein USA is in charge of the data on stationary sources of energy emissions.

Wood Consumption Trading Transport Carboni- zation Production

Figure 3. Elements of the Charcoal Value Chain (process in reverse)

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Table 1 elaborates the CVC and shows the different stakeholders, their roles, and the data to be collected from them. The last column of Table 1 indicates the methods used in data collection.

Table 1. Stakeholders and Data Collection along the Charcoal Value Chain Method of Data to be Elements Stakeholders Role Collecting Collected the Data Consumption Households Uses charcoal for Kilogram (kg) of Survey 1 cooking, grilling and charcoal used/day/ Street Vendors c/o GHG boiling year Accounting Institutions (separate study)

Trading Retailers Purchases and sells *Sacks of charcoal Survey 2 charcoal for profit to sold/year Interview households, street vendors and institutions LGU Issues permit and *Sacks of charcoal licensing issued permit /year No. of Traders with license to transport charcoal/year

Transport Agents/Middlemen Buys Charcoal from *Sacks of Charcoal Survey 3 producers and sells to bought from Interview retailers producers and sold

to traders/year Transporters Transport Charcoal *Sacks of charcoal from place of origin to transported from Iloilo City place of origin to Iloilo City

Carbonization Charcoal owners/ Provides capital in No. of license Survey 4 producers charcoal preparation for charcoal producers Interview carbonization. who provides

capital in charcoal

production per identified place of

origin

Employees Perform the charcoal *Sacks of charcoal production produced/ load/ year Species of wood used in the charcoal production.

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Method of Data to be Elements Stakeholders Role Collecting Collected the Data Method or Technology used in production.

Wood Tree owners Source of wood for No. of tree owners Survey 5 Production charcoal production with and without Interview either legally or illegally license to cut trees

from DENR-

PENRO.

Provides tree cutting

permit List of specie/s of

wood cut and used DENR-PENRO for charcoal production. Note: a) In Survey Method, a questionnaire will be the tool to be provided to the stakeholders. After data are collected, this will be analyzed using statistical tools. b) Interview means a face to face dialogue with the stakeholders. c) *Sacks refer to the packaging of charcoal used in transporting it from the place of origin to consumers. This will be weigh in term of kilogram of charcoal per sack.

About three sequences based on the three components of the study were followed: First, the market survey on energy consumption; second, the charcoal value chain; and finally, the charcoal production survey. It is very feasible to go upstream (backwise) from consumers, along the market chain and way up the charcoal producers.

2.3.1 Iloilo City Energy Consumption

The energy consumption survey was carried out by the researchers led by the author from the USA performing the Updating the GHG Inventory of Iloilo City on stationary sources of energy (charcoal, wood fuel and butane gas) as well as the agriculture sector. Other data on energy consumption such as LPG and kerosene were taken from researchers of Central Philippine University (CPU). Table 2 shows citywide energy consumption per fuel source in 2017 except for LPG and kerosene. Meanwhile, there is no factual record to show the charcoal, wood fuel and butane energy consumption in Iloilo City for 2015.

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Table 2. Energy Consumption of the City of Iloilo per Fuel Source Charcoal, Wood Fuel, Butane, LPG, Kerosene kg kg kg kg kg Iloilo 3,395,254.3 281, 510.8 36,960 8,292,613.9* 20,605.73* City *Data taken from Gaoline Stations in Iloilo City 2015 records.

A survey questionnaire was developed and used to gather data from the markets that sell charcoal to consumers, which may be household residentials or commercial establishments. Annex A shows the template. The questions focused on energy use and expenditure for electricity, charcoal, firewood, and other energy sources. Supporting instittions and key respondents are elaborated in Annex B. The data were analyzed to enable comparisons to be made by source. 2.3.2 Overall CVC Survey

Information gathered in the Iloilo City Energy Consumption survey were used to identify the main markets in the city that trade charcoal products. These markets were visited and charcoal traders/ retailers were interviewed to trace where the charcoal on sale was produced and how value was added along the entire chain. The GHG research team of USA visited retail and wholesale markets located in the six districts of Iloilo City: Arevalo, City Proper, Jaro, La Paz, Mandurriao, and Molo. Charcoal production sites in Iloilo Province and Guimaras Province were also visited. Charcoal transportation was also observed and taken into account.

At each stage/location, questions focused on prices, value-adding activities at that level, and costs incurred. The data were then analyzed to indicate profitability levels along the chain. 2.3.3 Charcoal Production Survey

The findings from the preceding two surveys, i.e., energy consumption and charcoal value chain, enabled the author to identify with confidence the main charcoal producing areas in the Province of Iloilo and Province of Guimaras.

A total of 13 municipalities in the Province of Iloilo and five municipalities in the Province of Guimaras were identified in this component of the study, which are producing charcoal estimated at 28.05 percent of the total energy consumption of both households and commercial establishments in Iloilo City. To determine the volume of charcoal production from the source, the size of active charcoal sites was measured, the technology used was recorded (from the preparation, carbonization to packing, the time and the number of sacks of charcoal produced). The species of trees used in the charcoal production were also recorded in the different charcoal source in Provinces of Iloilo and Guimaras.

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III. RESULTS AND DISCUSSION

Preliminary results on the technical aspects in local charcoal making processes and the market flow of charcoal from outside sources into the City of Iloilo were documented.

3.1 Charcoal Making Process

Understanding the charcoal value chain enabled the researcher to locate the sites delivering the most number of sacks of charcoal into the City of Iloilo from the different towns of the Provinces of Iloilo and Guimaras. 3.1.1 Charcoal Usage and Forest Conversion

From the Iloilo City Energy Consumption, Table 3 shows the estimated impact of forest resources to land conversion. It can be seen that more than one hectare of forest per year are cut down to make charcoal for Iloilo City. With the increase of population in the City of Iloilo, charcoal consumption definitely will increase if the technology use in grilling in commercial establishments will not improve in years to come.

Table 3. Annual Usage of Charcoal in Iloilo City and Associated Forest Conversion Charcoal Charcoal use Wood required Equivalent forest use (metric tons) (cubic meters, area cleared (ha)

(kilograms) m3)

Iloilo City 3,395,254.3 3,395.2543 13,581.02 1.36

Basis: Bulk density of commercial charcoal = 250 to 300 kg /m3 1 hectare of forest = 10,000 m3 of wood

3.1.2 Tree Species Used

Some charcoal producers use a mixture of different species of trees in their production. Others use one species in the case of tree farms when only the twigs and branches are used during the trimming period

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 15

or during which the tree owner decided to harvest his trees and convert these trees to lumber. Table 4 shows the species of trees used in charcoal production.

Table 4. Tree Species Used in Charcoal Production in Iloilo and Guimaras Tree species with lighter mass Tree species with heavier mass when converted to charcoal when converted to charcoal Gmelina (Gmelina arborea Roxb.) Mulawon (Vitex par viflora) Mahogany (Swietenia mahogani) Mangium (Acacia mangium) Madre de cacao (Gliricida sepium) Binunga (Mallutos grandifloras) Indian mango (Mangifera indica) Hitang-hitang (Altonia macrophylla) Ipi-ipil (Leucaena leucocephala) Bugnay (Antidesma bunius) Kamonsil (Pithe cellobium dulce) Sibucao (Caesalpinia sappan L.)

Charcoal producers use trees that are growing abundantly in their area. Not all the trees listed in Table 4 grow in one place. Trees trive in different type of soil. About three to five species can be found in a place for charcoal production. There are trees that are unsuited for charcoal production because it will result to poor charcoal product. These trees are simply better as fuel wood.

Access to the wood or tree also depends on the ownership of the land, but in most cases, the timber can be cut down after a clearance to cut is obtained from the nearest DENR office given to the tree owner even for clearing and trimming for private lands. 3.1.3 Technologies

There are several methods in charcoal production: the vertical earth-mound, the horizontal earth- mound, and the pit kiln. Figure 4 shows the vertical and horizontal earth-mound methods used in charcoal production. Before, the open pit kiln was used but because of the difficulty in harvesting the charcoal from a dug earth, the charcoal producers of Guimaras developed the methods of laying the woods horizontally or to arrange it vertically. Harvesting the charcoal then became easy. According to the President of GCFFMPAI, it was the Guimaras-based charcoal producers who introduced the horizontal and vertical arrangements to the charcoal producers of Iloilo and Negros.

Production of charcoal can range from a small production of three sacks per load to a large production of 50 sacks per load. For the small production it can take about less than 24 hours while the large one may take three days and a night to complete the production process. Production time also depends whether the wood prepared for the production is freshly cut or dried. The use of freshly cut wood in the production takes about six to seven hours more than using the dried wood.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 16

(a) Vertical Earth-Mound Method (b) Horizontal Earth-Mound Method

Figure 4. Methods in Charcoal Production

The method found to be commonly used by charcoal producers in both provinces is the vertical earth- mound technique. In this method, about 85.71 percent of the fuelwood is converted to charcoal. Experts in charcoal production are the indigenous people who have their communities in the Municipalities of Buenavista and Jordan in the Province of Guimaras and in the Municipality of Barotac Viejo in the Province of Iloilo. 3.1.4 Production Process

Charcoal production starts with the cutting down of tree branches into one to two feet long. The cut branches are arranged or piled depending on the method the charcoal producer wanted to use. However, the vertical earth-mound method is the commonly used method. It is then fenced around with banana trunk, covered with “hagonoy” leaves or madre de cacao leaves, covered with earth thoroughly from top to bottom and side to prevent the entry of air. A worn-out portion of a rubber slipper of 1 x 3 in dimension tied in a bamboo stick is used to ignite the fire inside the kiln. After 10 minutes, a smoke goes out at the bottom side of the kiln.

For two sacks of charcoal produced (four cans of charcoal = 1 sack of charcoal produced), the fuel wood used is approximately 35 kg. Carbonization is complete after 19 hours from the start of arranging the woods. It is then cooled by scattering the charcoal on the ground and sprinkling it with little water. After two hours, it is packed in sacks. 3.2 Value Chain

It is interesting to know the steps and how much the value of charcoal increases from input raw material to purchase by consumers. Figure 5 summarizes the market flow of charcoal that ends up in Iloilo City.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 17

Figure 5. Market Flow of Charcoal

3.2.1 Wood Production

Charcoal is being produced in areas far from the consumers usually in mountains or in low-lands in the rural areas, where the source of trees is found or within the backyard of the charcoal producer. If a tree owner wants to sell the trees from his land as lumber, usually the cuttings and trimmings which are considered wastes from the lumber production are hauled to the charcoal producer kiln site or within the tree owner land for charcoal production. In case the tree owner just wants to trim the trees, the charcoal producer prepares the trimmings onsite for the carbonization process until the charcoal are packed. The kiln site is usually a sight of carbon everywhere from the soil to the leaves of the surrounding trees.

In Iloilo City, the household charcoal consumption is estimated to be 71.76 percent and comes from the Province of Guimaras. The Province of Guimaras is an island of about 20-minute ride to Iloilo City by motorized banca. All the Municipalities in the province namely, Buenavista, Jordan, San Lorenzo, Sobunag, and Nueva Valencia contribute to the charcoal delivered for energy consumption in the City of Iloilo. The remaining 28.24 percent of charcoal comes from the northern, central and southern part of the Province of Iloilo. In the northern part, notable are charcoals coming from the Municipality of Barotac Viejo, Ajuy and Lemery. In the coastal area going north, charcoal also comes from the Municipality of Anilao. In the central part of Iloilo, charcoal comes from the Municipalities of Alimodian, Leon, Maasin, Lambunao, and Janiuay. From the southern part, charcoal comes as far as the Municipalities of San Joaquin, Igbaras, Guimbal, and Tigbauan.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 18

3.2.2 Carbonization and Packaging

Charcoal is produced largely during summer from the month of December to July after the tree owner gets his clearance to cut from the nearest DENR office, which are the CENROs for the Province of Iloilo and the PENRO for the Province of Guimaras. Lean months of production is usually during the months of October and November where there is rice harvest in the low lands. Most of those who are producing charcoal participated during the harvest. During rainy season, charcoal demand is high but charcoal producers just produce charcoal in small quantity for small orders from the neighborhood by just trimming trees within his area. Usually production is a mixed species of trees from the nonregulated trees to fruit trees. But for regular orders specifically from commercial establishments, traders have to find several sources from small charcoal producers and store sacks of charcoal in their backyard until the desired number of sacks of charcoal are meet to be delivered on time to their clients in the City of Iloilo.

The value-adding activities at the production sites are the conversion of trees, labor into charcoal and packaging. In the Tree Owner-Charcoal producer agreement, usually the 1:2 ratio is the basis of dividing the profit after the sacks of charcoal are sold to traders. Meaning, the owner gets one part while the producer gets 2 parts of the profit. It is usual that the charcoal producer is the one packing the charcoal in sacks and help is coming from his/her immediate family. At time, the daughters also help when the need arises especially during big production such as 20 sacks.

Sacks used for Charcoal Packaging

There are two types of sacks used: 1. Small sacks containing 4 cans of charcoal (15 -18* kg) 2. Large sacks containing 6 cans of charcoal (22.5 -28* kg)

*Exact weights depend on species of wood used during the production

3.2.3 Transport and Trading

Transport and trading are the major value-adding activities here where charcoal moves from the producer to consumers. In this study, the trader is also the one to bring the charcoal directly to the consumer or to the retailers.

As shown in Figure 5 there are three types of supply route for charcoal to be accessed by consumers. In A, the trimmings from the tree owner are made into charcoal by the producer. After the whole carbonization process and packaging, the charcoal producer will deliver the sacks of charcoal to the consumers either by carrying the sacks of charcoal, one in front and the other at the back, with the aid of a bamboo pole placed on one’s shoulder and deliver these by foot. Sometimes the individual uses

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 19

trisikad, which is a bicycle-driven cart. Usually this is for small and direct orders of sacks of charcoal. Selling price is Php 130 per sack, which has four cans of charcoal per sack and is free of delivery.

In B, this is usually the chain link for orders for commercial establishments. The trader buys sacks of charcoal from different charcoal producers who usually get the trimmings from tree owners. Volume is from 100 to 500 sacks per delivery to big clients. Trader buys the charcoal at Php 150.00 per sack, which contains six cans of charcoal per sack. Added are the cost of transportation and labor cost of two helpers from site to storage at the backyard. By the time of delivery, additional cost items include transportation, labor cost, and transport permit fee from the nearest DENR-CENRO for the Province of Iloilo and DENR-PENRO for the Province of Guimaras. Total cost incurred is Php 280-310.00 and selling price is Php 350.00 to the client. Earning him a profit of Php 50-70.00 per sack.

In C, the whole chain links from the tree owner to the charcoal producer and the number of sacks of charcoal are sold to the trader who in return transport and sell the sacks of charcoal to retailers and the retailers sell either sacks of charcoal or charcoal packed in small quantity in plastic to consumers. Selling price is Php 130.00 per sack of 4 cans of charcoal per sack . When other expenses similar to B are added, traders sell the product at Php 320.00 per sack. For the six cans per sack package, trader buys this at Php 150.00 and sell to retailers at 350.00. Retailers sell this at Php 400-420 per sack or have the option to repack it into 30 packs per sack at Php 20.00 pack, thereby earning Php 100-250.00 per sack in the process.

The study also tried to investigate how much of the charcioal produced have been transported and traded with the necessary permits. The three concerned CENROs under PENRO Iloilo do not have a proper databank of charcoal transport licenses so the 28.24 percent of Iloilo City’s charcoal needs supplied by the different neighboring municipalities in Iloilo can not be differentiated according to how much was transported and with relevant permits.

However, PENRO-Guimaras has records of all Permits to Transport issued in 2016. Data synthesis revealed that 1,271 of the 1,568 permits were issued in 2016 for the transport of charcoal with the remaining permits were issued for the transportr of lumber and firewood. The permits represented a total of 137,894 sacks of charcoal transported from Guimaras for the entire year. Since the city’s annual demand for charcoal was 150,900 sacks, this amount theoretically represents 60.92 percent of the charcoal needs of Iloilo City. However, the total volume reflects all legally transported charcoal out of the Province of Guimaras, which had been delivered not only to Iloilo City but to the nearby Province of as well. A further investigation needs to be carried out to determine how many sacks are delivered to the city including those that are not formally or legally documented.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 20

IV.CONCLUSION AND RECOMMENDATIONS

The charcoal market systems observed in the study from the different areas in the two provinces are well ordered in spite of the fact that charcoal is an unlicensed product. Its permit to transport is legal. Production sites are well known, and there is an established network of transporters/traders, wholesalers, or retailers. The charcoal industry operates in the shadow economy. It is because some large quantities of charcoal are usually transported at night, others in different routes with no government agency policing the routes. Occasionally it transported by motorized cart from the Iloilo Super Market port to the different district markets, subdivisions and sari-sari stores in the City of Iloilo done in broad daylight. Charcoal from Guimaras are transported in motorized banca. Those from the Province of Iloilo either by public utility vehicle or by the transporter/trader’s elf truck. The value- adding activities involve packing and transport: the findings showed charcoal is stored in significant amounts from 100 to 500 sacks in trader’s backyard to be delivered to clients in the City of Iloilo. Charcoal traders from Guimaras deliver charcoal three times a week. In the value chain, producers earnings ranged from 20 percent to 23 percent of retail price, while transporters earn 23 to 27 percent of final value. Retailers obtain 25 percent to 37 percent of final selling price. The charcoal industry must be given attention by the government. Small charcoal producers must be protected since they are directly affected by the charcoal value chain.

Iloilo City energy consumption is 3,395,254.3 kg of charcoal annually. This is a total of 121,259.08 sacks of charcoal with six cans per sack or an equivalent of 13,581.02 cubic meters of wood each year. This means that it requires a land clearing of 1.36 ha per year of wood land to supply the need of charcoal in the City of Iloilo. The recent charcoal production in the Province of Iloilo has been tremendously reduced due to strict implementation of the government policies by the DENR-CENRO especially on the cutting of regulated and unregulated trees and the permit to transport of the charcoal produced. Forest management has been well promoted by DENR-PENRO. DAO No. 79, DAO No. 07, and DENR Memorandum Order No. 99-20 are fully implemented.

Charcoal production using the earth kiln type is found to be inefficient as this posed accidents and health problems to charcoal producers besides of its high labor incentive activity. Innovation of better ways or procesess in producing charcoal by academic institution through research will result in an efficient charcoal kiln and elimination of hazards. Simple improvements can make a difference.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 21

V. REFERENCES

Blodgett, Courtney. February 2011. Charcoal Value Chain and Improved Cookstove Sector Analyses. SNV Rwanda positioning document.

Calub, Felipe. DENR Rules and Regulations Governing Timber and Timber Products Planted on Private Lands.

City Planning and Development Office. 2015 Ecological Profile of Iloilo City.

DAO No. 79 series of 1990.

DAO No. 07 series 1994.

DENR Memorandum Order No. 99-20 series 1999.

Kambewa, Patrick, Mataya, Bennet, Sinchinga and Johnson, Todd. 2007. Charcoal: the reality. A Study of Charcoal Consumption, Trade, and Production in Malawi.

Kenya Forest Service (KFS).August 2013. Analysis of the Charcoal Value Chain in Kenya. Final Report.

Sepp, Steve. Analysis of Charcoal Value Chains-General Considerations. GTZ

Wilde, Gerogina.NAMA Study for Sustainable Charcoal Value Chain in Ghana.United Nations Development Programme (UNDP).

http://philippinenativeforesttrees.blogspot.com/2009/09/list-of-imported-trees-aliens-in-our.html

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 22

VI. ANNEXES

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 23

ANNEX A. Survey Questionnaire

1. CHARCOAL AND FUELWOOD INVENTORY IN ILOILO CITY

CONDUCT OF COMMUNITY LEVEL GREENHOUSE GAS INVENTORY OF ILOILO CITY

CHARCOAL AND FUELWOOD INVENTORY IN ILOILO CITY

A. Business/Trading/Whole selling

1. District/Brgy______B. Commercial Establishment

Name______1. District/Brgy______

Address______Name of Establishment______

Source of ______Charcoal/Fuelwood______Address______Name of Agent______Source of Charcoal/Fuelwood______

Name of Agent______No. of sacks delivered

No. of sacks delivered Species of Wood Used

No. of can/sack Species of Wood Used

Frequency of Delivery No. of can/sack

Client Frequency of Delivery

Bundles of Fuelwood Bundles of Fuelwood

Specie Specie

Client

Remarks______Remarks______

______

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 24

2. QUESTIONNAIRE: ANALYSIS OF CHARCOAL VALUE CHAIN IN ILOILO CITY ANALYSIS OF CHARCOAL VALUE CHAIN IN ILOILO CITY

QUESTIONNAIRE

Objective of the Study: To analyze the structure and role of the main players of the charcoal

value chain in Iloilo City.

Name:______

Address:______

Municipality______

Province ______

Direction: Please check the appropriate box for your answer. 1. Which group you belong? ☐ Charcoal producer ☐ Charcoal trader/transporter ☐ Charcoal wholesaler

2. Which age group you belong? ☐15 – 19 y.o. ☐ 30 – 39 y.o. ☐ 50 – 59 y.o. ☐ 20 – 29 y.o. ☐ 40 – 49 y.o. ☐ 60 – 69 y.o. Pls. specify______

3. Gender ☐Male ☐Female

4. Marital Status ☐Single ☐Married ☐Widower

5. Education ☐Primary ☐Secondary ☐Tertiary

6. Business Status ☐Registered ☐Not Registered

7. Average Gross Income/month ☐less than Php12,500 ☐average of Php 12,500 to 20,000 ☐more than Php 20,000 , pls specify ______

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 26

8. Problem/s faced during operation ☐Lack of raw materials ☐Lack of financing ☐Lack of charcoal ☐Corruption ☐Government regulations ☐Others, pls specify______

9. Years in the business ☐less than 5 ☐average of 5-10 ☐ more than 10, pls specify______

10. FOR CHARCOAL PRODUCER ONLY

A) Estimated Volume of tree used per load per week. ☐Less than 500 bdft ☐average of 500 – 1000 bdft ☐more than 1000 bdft, pls specify ______

B) Kind of Tree/s used during the charcoal production. ☐Ipil-ipil ☐Gmelina ☐Mangium ☐Sibucao ☐Mahogany ☐others, pls specify______

C) Source of fuelwood used for charcoal production per load per week.

☐cuttings from trimmed grown tree in private lands ☐others, pls specify______

☐cuttings from trees used for lumber and fuelwood from private land

D) Method of Charcoal making used in charcoal production. ☐Earth pit kilns ☐ Earth Mound Kiln ☐Brick Oven

E) Fuelwood used is ☐ newly cut ☐ dried for 2 weeks

F) Estimated Cost incurred in Charcoal production per load per week. ☐less than Php750 ☐average of Php750-1500 ☐more than Php1500

G) Estimated Number of Sacks of Charcoal produced per load per week. ☐Less than 10 sacks ☐average of 10 -20 sacks ☐more than 20 sacks, pls specify ______

H) Amount of charcoal per sack

☐ 4 lata ☐ 6 lata ☐ 8 lata

I) Estimated Cost of Sale of Charcoal produced per load per week. ☐Less than Php1250 ☐average of Php1250 -2500 ☐more than Php2500

J) Cost of a sack of charcoal produced

☐ less than Php200 ☐ average of Php 200-300 ☐ more than Php300

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 27

K) Number of workers in the production of charcoal ☐none ☐ 1 ☐ 2

L) Number of production days per week ☐ 1 ☐ 2 ☐ 3

11. FOR CHARCOAL TRADER/TRANSPORTER ONLY

A) Sacks of charcoal transported per week ☐less than 50 ☐average of 50 -100 s ☐more than 100, pls specify ______

B) Number of Charcoal producers where charcoals are taken. ☐less than 2 ☐average of 2-5 ☐more than 5

C) Mode of transportation used in transporting charcoal from source to wholesaler. ☐bicycle/motorbike ☐tricycle ☐passenger jeep ☐owner type jeep ☐pump boat ☐others, pls. specify______

D) Cost of transporting the charcoal from source to wholesaler. ☐less than Php500 ☐average of Php500 – 2000 ☐more than Php2000, pls specify ______

E) Cost of sale of charcoal per sack to wholesaler. ☐less than Php200 ☐average of Php200- 300 ☐ more than Php300, pls specify ______

F) Number of workers used in the transportation of charcoal. ☐ 3 ☐ 4 ☐ 5

G) Number of days of delivery per week. ☐ 1 ☐ 2 ☐ 3

12. FOR CHARCOAL WHOLESALER/RETAILER ONLY A) Number of sacks of charcoal received per week. ☐ less than 10 ☐ average of 10-50 ☐ more than 50, pls specify ______

B) Cost of a sack of charcoal paid to transporter/agent. ☐ less than Php250 ☐ average of php250-350 ☐ more than Php350, pls specify ______

C) Cost of a sack of charcoal sold to customer. ☐ less than Php250 ☐ average of php250-350 ☐ more than Php350, pls specify ______

D) Number of agent who retails the charcoal to sari-sari stores or direct to household. ☐ 3 ☐ 4 ☐ 5

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 28

E) Source/s of charcoal sold. ILOILO PROVINCE ☐ Leon ☐ Maasin ☐ Tigbauan ☐ Igbaras ☐ Alimodian ☐ San Enrique ☐ Lambunao ☐ ☐ Janiuay ☐ Passi ☐ Anilao ☐ Bta.c Viejo ☐ Ajuy ☐ San Rafael ☐ Lemery

GUIMARAS PROVINCE ☐Buenavista ☐ Jordan ☐ Nva. Valencia ☐ San Lorenzo ☐ Sibunag F) Kind of Tree/s . ☐Ipil-ipil ☐Gmelina ☐Mangium ☐Sibucao ☐Mahogany ☐others, pls specify______

REMARKS:______

______

______

______

Thank you. End of survey.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 29

ANNEX B. Supporters and Respondents

Iloilo City Environment and Natural Resources Office

Engr. Noel Z. Hechanova, Department Head

Department of Environment and Natural Resources Regional Office No. 6

Mr. Raul L. Lorilla, DENR PENRO – Iloilo

Mr. Vicente A. Sardina, DENR PENRO – Guimaras

Mr. Vicente T. Mellizas, Jr. DENR CENRO – Sara, Iloilo

Mr. Salvador C. Manglinong, Jr., DENR CENRO – Guimbal, Iloilo

Ms Alma Demontaño, DENR CENRO - , Iloiloo

Mrs. Alma Ballego, Assistant DENR CENRO – Sara, Iloilo

Mr. Rodino P. Laspiñas, Regulatory Service Unit Chief of DENR CENRO - Barotac Nuevo, Iloilo

Ms. Juliet Gabayeron, Chief, Technical Division of DENR-PENRO-Guimaras

Mrs. Arlene Logronio, FUU Chief of DENR CENRO – Guimbal, Iloilo

Ms. Christine C. Patrimonio, FUU Chief of DENR CENRO – Sara, Iloilo

Forest Rangers Ms. Marygold Leada and Ms. Corazon Ignacio

Chemical Engineering Department, College of Technology, University of San Agustin

Ms. Margarita Giner

Engr. Philip Lloyd Legada

Engr. Joshua Louise Navarro

Engr. Vice Mendoza

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 30

Main Respondents

Ms. Amparo Ganea, President of Guimaras Charcoal, Fuelwood, Firewood Maker/Producer Association, Inc (GCFFMPAI)

Charcoal makers from the hinterland of northern, central, and southern part of the Province of Iloilo and from the island of Guimaras.

The 14 year old charcoal maker from Janiuay, Iloilo

Remy Galas

Ryan Gabinete

Charcoal traders

Charcoal whole sellers and retailers in the City of Iloilo

Commercial establishments in the City of Iloilo

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 31

ANNEX C. Photos

C-1 TECHNOLOGY

Horizontal Method

1. Tree branches are cut into 2 feet or less. 2. Building of fire starter at the middle of the kiln.

3. Addition of the “balag-ang” charcoal around 4. Addition fresh tree branches around the the fire starter. “balag-ang”.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 32

5. Arrangement of mix fresh and “balag-ang” 6. Fencing of wood around the kiln tree branches in pyramidal manner.

7. Tieing with “balagon” around the kiln to 8. Placing of flatten banana trunk between the make the fence stronger. piled tree branches and the fence to prevent the the earth when placed to run down.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 33

9. Covering of “Dagohoy” leaves around the kiln. 10. Addition of carbonized earth at the top.

11. Starting a fire to be inserted inside the kiln 12. Inserting the stick with fire inside the using an old worn out rubber slipper attached to a kiln. stick.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 34

13. After 5 min, a smoke comes out from the bottom 14. Covering the bottom with banana truck to control of the kilm. the passage of air inside the kiln.

15. Smoke all over the kiln and the process goes on 16. After 20 hours of carbonization process, no for 20 hours. smoke comes from the kiln which signifies that the process is done and the height of the kiln decrease.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 35

17. The kiln is collapsed using a rake. 18. Charcoal are spread out to cool.

19. Charcoal is sprinkled with water for fast cooling. 20. Charcoal is placed in a 1kg tin can used to hold 17 kg of oil.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 36

21. Amount of charcoal placed inside a sack. 22. Bagging the charcoal inside a plastic sack.

23. Sewing the top using matured banana trunck. 24. The charcoal producer with his product of charcoal of 4 tin can per sack.

25. Sample of incomplete carbonized tree branches.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 37

Horizontal Method

26. Arrangement of coconut pettle in circle. 27. About 2 ft tree branches are place atop the coconut pettle in circular arrangement.

28. The kiln is fenced and tied with “balagon” to 29. The kiln is covered with “dagohoy and make it more stronger. madre de Cacao leaves”. Carbonized earth is placed atop to cover the leaves and the entire kiln.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 38

30. Banana trunck is placed around the kiln to 31. The kiln is ready for firing. Here, a stick with prevent the leaves and the carbonized earth to old worn out rubber slipper with fire is inserted. run down.

32. The carbonization process lasted for 20 hours.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 39

33. End of the carbonization process. The next process is to collapse the kiln and let the charcoal cool then pack.in plastic sacks.

Bigger Production (10 to 20 sacks per load)

1. Brgy. Banban, Buenavista, Guimaras

A hole is dug at the center for easy firing with guided bamboo pole.

The earth on the side of the circle is scrape upward to form wall.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 40

Tree branches and trunks stocked ready for the charcoal production.

Carbonization process. Leaves of trees cover the tree truncks with sawdust and covered also with earth to form a big kiln.

Coconut leaves are braided and used to hold the the leaves, saw dusts and earth.

(a) saw dust after the firing (b) braided coconut leaves (c) incomplete carbonized after the firing. branches of trees.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 41

2. Brgy. Tanag, Buenavista, Guimaras

1. The kiln good for 20 sacks of charcoal. 2. Workers working together to collapse the kiln manually using a shovel.

3. The charcoal is scattered to cool it off ( gallon of water is poured into the kiln prior to collapsing the kiln).

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 42

4. Packing is done by several persons. 5. Packed charcoal (4 tin cans per sack) in plastic sacks.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 43

3. Brgy. Agsanayan, Buenavista, Guimaras

6. Kiln for 20 sacks of 6 tin cans per sack charcoal.

4. Brgy. Pancilihan, Janiuay, Iloilo

(a) (b)

(c)

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 44

7. The youngest respondent, a 14 year old boy making 12 sacks of charcoal of 3 sacks per load. Here shown (at c) are 6 sacks he had made already and another 3 sacks still in the kiln. Top right (b) he is shown at the top of the kiln trying to know if the kiln needs more earth to cover, a dangerous action to do for a 14 year old boy earning a living for his school allowance and school supplies through charcoal making.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 45

C-2 Species of Trees Commonly Used in the Charcoal Production

1. Sibukao (Caesalpinia sappan L.)- only in the Province of Guimaras

2. Mangium (Acacia mangium)

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 46

3. Ipil-ipil (Leucaena leucocphala)

4. Madre de Cacao (Gliricida sepium) 5. Gmelina (Gmelina arborea Roxb.)

6. Hitang-hitang (Altonia macrophylla) 7. Mahogany (Suretenia mahogani)

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 47

C-3 Charcoal Survey

1. La Paz Market

Stocked sacks of charcoal newly delivered at the La Paz Market. Pictrue below charcoal are repacked in plastic bags and sold as “tingi” for P10 per plastic bag to households.

2. Jaro Market

Survey of Charcoal sold at Jaro Market. Here an interview with a retailer. On the right are repacked charcoal sold at P20 per pack.

ANALYSIS OF THE CHARCOAL VALUE CHAIN IN ILOILO CITY 48

3. Iloilo City Terminal Market (Supermarket), downtown Iloilo City proper. Source: Guimaras

Thousands of sacks of charcoal at the Iloilo Terminal Market port. These are owned by the different wholesalers and are delivered to the district markets of the City of Iloilo. There are 6 districts in the City of Iloilo.

Charcoal sold at Iloilo Terminal Market.

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4. Port of Guimaras Jordan, Province of Guimaras

Hundreds of sacks of charcoal at the Port of Guimaras waiting to be delivered to Iloilo City.

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C- 4 Type of Vehicles Used in the Delivery and Transport

(a) Motorized Passenger Banca (b) Tricycle with side cart

C-5 Charcoal Transporter

1. Barotac Nuevo, Iloilo

Mrs. Jenny Deallo Jeanny Deallo’s stock of charcoal in her wharehouse. Brgy. Santiago, Barotac Nuevo, Iloilo

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2. Ajuy, Iloilo

Mrs. Daisy Atadero Atadero’s stock of charcoal in her backyard. Brgy Progreso, Ajuy, Iloilo

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C-6 Charcoal Producer

Mrs. Lydia Elosendo Mrs. Nelly Balagosa Brgy. San Francisco, Barotac Nuevo, Iloilo Brgy. Santiago, Barotac Nuevo, Iloilo Indigineous person 70 years old

14 year old boy Mr. Remy Galas Brgy Pancilihan, Janiuay Sitio Carig-on, Brgy Agsanayan Iloilo Buenavista, Guimaras

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C-7 Government Offices

1. Province of Iloilo Department of Environment and Natural Resources Provincial Environment and Natural Resources Office and its Community ENRO

Mr. Raul L. Lorilla DENR- PENR Officer Province of Iloilo

Mr. Vicente T. Mellizas, Jr. DENR CENR Officer Sara Office

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Mrs. Alma Demontaño DENR CENR Officer Barotac Nuevo Office

Mr. Salvador C. Manglinong, Jr. DENR CENR Officer Guimabal Office

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2. . Province of Guimaras Department of Environment and Natural Resources Provincial Environment and Natural Resources Office

Mr. Vicente A. Sardina DENR PENR Officer Province of Guimaras (Behind us is the Sibukao Tree)

3. Iloilo City Environment and Natural Office (CENRO) 4F Iloilo City Hall

With CENRO staff and Ms. Marge Giner from College of Technology, University of San Agustin.

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U.S. Agency for International Development

1300 Pennsylvania Avenue, NW

Washington, DC 20523

Tel: (202) 712-0000

Fax: (202) 216-3524

ANALYSIS OF THE CHARCOAL VALUE CHAINwww.usaid.gov IN ILOILO CITY 57