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Commercialization of Corn Silage in Lupao, Nueva Ecija Through Technomart

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Commercialization of Corn Silage in Lupao, Nueva Ecija Through Technomart Commercialization of Corn Silage in Lupao, Nueva Ecija through TechnoMart Eric P. Palacpac, Daniel L. Aquino, Charity I. Castillo Philippine Carabao Center,Science City of Muñoz, Nueva Ecija 1st CLAFEN and TGP Summit, CLSU, Science City of Muñoz, Nueva Ecija, November 27-28, 2019 Background • scarcity & seasonality of good quality forages • poor nutrition, low productivity • crop by-products as fodder • feed concentrates, legumes, minerals as supplements • conserved forage such as “silage” Background “Silage” = feedstuff produced by anaerobic fermentation of fresh, chopped forage with 65%-70% moisture content “Ensiling” = fermentation process “Silo” = container Background Isaiah 30:24 “and the oxen and the donkeys that work the ground will eat seasoned fodder, which has been winnowed with shovel and fork.” Background • Huge market for corn silage • In Nueva Ecija, projected forage deficiency is 40% or 6,300 metric tons • MOU between Philippines-South Korea (2014) ✓ Philippines to export 2,000-3,000 MT corn silage a month to S. Korea (represents only 40% of total monthly requirement of S. Korean firm) • PCAARRD’s TechnoMart modality provided an opportunity to address the said challenges and opportunities Background PCAARRD’s TechnoMart (TM) • A technology transfer modality, which aims to create S&T-based enterprises ▪ Planning and development of product commercialization pathway through a product champion (entrepreneur) ▪ Capability-building ▪ Business matching ▪ Development of product promotional strategies ▪ Provision of IEC materials Objectives General: To demonstrate the commerciality of corn silage through TechnoMart Specific: (1) To establish a farmer-led commercial production of corn silage in Nueva Ecija (2) To promote a community-based commercial corn silage production as a source of additional income for farmers Materials & Methods • Engagement with a Product Champion • Brgy. Parista, Lupao, Nueva Ecija • Former chemist • Corn farmer • Dairy buffalo farmer • Manager Mr. Isagani Cajucom • Entrepreneur Materials & Methods • Preliminary Consultation with Farmer-Cooperators • Capability Building of Farmer-Cooperators • Forage Corn Production and Ensiling • Promotion and Marketing • Regular Project Meetings and M&E • Profitability Analysis Results ❑Participating Corn Farmers • Year 1 (2013-2014) 11 farmers • Year 2 (2014-2015) 9-11 farmers • Year 3 (2015-2016) 9-13 farmers ❑Capability Building through Learning Events • Farmers’ Trainings 3 • Study Tours 3 Farmers’ Trainings Corn and Silage Production (June 6-7, 2013) Farmers’ Field School: Corn and Silage Production of High Quality Silage Production (Dec.19, 2013 -Feb. 28, (September 25, 2014) 2014) Study Tours Commercial Cattle Feedlot, Magalang, Commercial Feed Company, Alaminos, Pampanga (February 11, 2014) Laguna (September 27, 2014) Commercial Cattle Feedlot at Calauan, Laguna and Lipa City, Batangas (March 3, 2016) Production Parameters Forage corn production, 2013-2015 (Project Years) Area (ha) Weight of Forage Corn (kg) Production Cycle Planted Outsourced Produced Outsourced Total 1st year 1st cycle 12.00 0.00 228,323 0 228,323 1st year 2nd cycle 2.75 2.00 68,000 56,246 124,246 2nd year 1st cycle 6.40 7.25 153,652 244,006 397,658 2nd year 2nd cycle 3.00 6.40 84,634 171,441 256,075 3rd year 1st cycle 9.65 26.00 216,653 772,795 989,448 3rd year 2nd cycle 10.10 8.00 251,438 163,542 414,980 Total 1,002,700 1,408,030 2,410,730 Production Parameters Forage corn production, 2016-2018 (Post Project) Area (ha) Weight of Forage Corn (kg) Production Cycle Planted Outsourced Produced Outsourced Total 4th year 1st cycle 15.00 8.00 525,000 280,000 805,000 4th year 2nd cycle 32.00 20.00 1,280,000 800,000 2,080,000 5th year 1st cycle 12.00 10.00 420,000 350,000 770,000 5th year 2nd cycle 29.00 25.00 1,160,000 1,000,000 2,160,000 6th year 1st cycle 11.00 8.00 385,000 280,000 665,000 6th year 2nd cycle 20.00 38.00 800,000 1,520,000 2,320,000 Total 4,570,000 4,230,000 8,800,000 TOTAL FORAGE CORN PRODUCTION IN KG Project Years (2013-2015) Post Project (2016-2018) 2,600,000 2,100,000 1,600,000 1,100,000 600,000 100,000 Y1C1/Y4C1 Y1C2/Y4C2 Y2C1/Y5C1 Y2C2/Y5C2 Y3C1/Y6C1 Y3C2/Y6C2 Promotion & Marketing • Trade Fairs and Exhibits (National and Local) • Technology/Farmers Field day • 1,195 copies of IEC materials • One Technology video • Uploaded on March 30, 2015 (FB) and on February 21, 2017 (Youtube) • 287,337 views, 764 shares, 1,208 likes (as of October 22, 2019) Trade Fairs and Exhibits DairyCon Expo at GenSan City May 6- 9, 2014 DairyCon Expo at Malvar, Batangas April 27-30, 2015 1st National Carabao Conference CLSU Agri and Aqua S&T trade Fair June Product Exhibit 11-18, 2014 December 3-5, 2015 Farmers’ Field Day July 25, 2013 March 26, 2015 Market Linkages Developed (2013-2015) Approximate Kg of Corn Market Number of Silage Animals Marketed Dairy cattle farm in Nueva 35 49,230 Ecija Institutional buffalo farms at 2,600 1,268,688 PCCNHQ, Nueva Ecija and PCC@UPLB, Laguna Commercial dairy cattle 1,600 1,048,943 farms in Quezon, Batangas, Pangasinan, and Nueva Ecija Goat farms in Nueva Ecija 1,030 34,516 and Tarlac TOTAL 2,401,377 Market Linkages Developed (2016-2018) Approximate Kg of Corn Silage Market Number of Animals Marketed Dairy cattle farm in Batangas 690 120,000/month* Cattle and goat farms in Laguna - 200,000/month* Cattle farm in Cavite 700 80,000/month* Cattle and goat farms in Isabela 4,200 120,000 every 22 days Cattle farm in Pangasinan 700-800 110,000/month* Cattle farms in Bulacan 15-18 10,000/month Rabbit farm in Bulacan - 80 (trial only) Institutional buffalo farms at PCC, 655 200,000-600,000/year* Nueva Ecija Cattle farm at DA-Baguio, Benguet 100 250,000 Goat farms in Nueva Ecija 250 10,000/month *Seasonal Profitability Measures Costs and returns for corn silage (2013-2015) Particulars 2013 2014 2015 Grand Total Production (kg) 352,569 653,733 1,404,428 2,410,730.00 Gross sales (Php) 875,048.60 2,189,585.20 4,886,262.50 7,950,896.30 Operating cost (Php) 793,553.48 1,697,498.12 4,336,223.19 6,827,274.79 50,708.27 50,708.27 97,124.93 198,541.47 Depreciation cost (Php) Total expenses (Php) 844,261.75 1,748,206.39 4,433,348.12 7,025,816.26 Net Income (Php) 30,786.85 441,378.81 452,914.38 925,080.04 ROI (%) 3.65 25.25 10.22 13.17 Average pick-up price of 2.39 2.67 3.16 2.91 corn silage (Php/kg) Harvest schedule 75-80 days after planting Profitability Measures Costs and returns for corn silage (2016-2018) Particulars 2016 2017 2018 Grand Total Production (kg) 2,885,000 2,930,000 2,985,000 8,800,000 Gross sales (Php) 11,540,000 11,720,000 11,940,000 35,200,000 Operating cost (Php) 9,809,000 9,962,000 10,149,000 29,920,000 97,125 97,125 97,125 291,375 Depreciation cost (Php) Total expenses (Php) 9,906,125 10,059,125 10,246,125 30,211,375 Net Income (Php) 1,633,875 1,660,875 1,693,875 4,988,625 ROI (%) 16.49 16.51 16.53 16.51 Average pick-up price of 3.91 3.91 3.91 3.91 corn silage (Php/kg) Harvest schedule 75-80 days after planting COSTS & RETURNS IN PHP Gross Sales Total Expenses Net Income 12,010,000 10,010,000 8,010,000 6,010,000 4,010,000 2,010,000 1,633,875.00 1,660,875.00 1,693,875.00 441,378.81 452,914.38 10,000 30,786.85 2013 2014 2015 2016 2017 2018 Project Years Post Project Initial Problems Encountered • low herbage yield of planted corn • high cost of labor • absence of heavy duty forage chopper • transportation for the delivery of corn silage • source of water supply Conclusions • Farmer-led, community-based corn silage enterprise on a commercial scale is feasible and profitable. • PCAARRD’s TechnoMart modality contributed to its success. • Mr. Cajucom resigned from his day job as a chemist in 2016 to focus on corn silage business. • He has continued with this business long after the project has ended. • Early in 2019, Mr. Cajucom through Parista Corn Farmers Association was awarded PHP8 million grant by the DA-RFO III to mechanize corn silage business. Acknowledgement • PCAARRD • Staff of PCAARRD’s Technology Transfer and Promotion Division (TTPD) • PCC Management • LGU-Lupao, Nueva Ecija • Mr. Isagani Cajucom and farmers at Lupao • Mr. Honorato Baltazar • Dr. Tsutomo Fujihara Thank You! [email protected] Video on Corn Silage Production.
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