The Mindanao Fruit and Vegetable Summit on October 20-22, 2011 held in Davao City proved to be an opportunity for Cantilan Bank to meet with value chain players in the sector and strike partnerships that promise to be beneficial to both the farmers and the bank. The summit brought together farmers, buyers and business leaders in a bid to address challenges faced by farmers and agriculture-based companies along the fruits and vegetable commodity value chains. Aside from discussions on benchmarking, best practices, and global marketing, the event featured business matching for producers, buyers, and bankers. The summit was also a venue for aspiring agri-entrepreneurs to learn how to start and grow a farming business.
Cantilan Bank Focusing on Value Chains to Expand Micro Agri Lending
October 23, 2011 By Leave a Comment
More rural banks expand Micro Agricultural lending in Mindanao
April 10, 2011 By Leave a Comment
Six Mindanao rural banks completed the RBAP-MABS training course on Agricultural Microfinance (MAP) last April 7-9, 2011 in Butuan City. The training, which is the second part of a two-phase Agri MF workshop, equipped the participants with the necessary tools and systematic approach to complete their micro-agri loan product manual and financial projections.
Of the six rural banks that attended the training, five plan to introduce their Micro-Agri Product in their respective areas of operation by the second semester of the year. One will be rolling out its MAP product to more branches.
The April 7-9 training included the know-how, tools and techniques of validating proposed product features using the results of the market research conducted after the first phase of the training course. The course also included actual focus group discussions with bank clients engaged in farming, as well as procedures involved in finalizing the Micro Agri loan product manual.
Finally, the participants were trained on cash flow analysis for clients with dual loan accounts. They were taught on when to use the 60/40 amortization plan for micro-agri clients, where at least 60% of the loan is amortized regularly and the remaining amount (up to 40%) is payable lump sum upon crop harvest.
The USAID-supported RBAP-MABS Program assists rural banks in developing Agricultural Microfinance loan products and services for small farmers. This effort is supported by the Bangko Sentral ng Pilipinas (BSP), which issued Circular 680 in February 2010 to further encourage more rural banks to lend to this market. To date, there are 58 branches from 14 rural banks offering micro-agri loans to their clients. As of February 2011, these 14 rural banks have disbursed more than 51,000 cumulative micro-agri loans totaling more than P725 million to 21,000 new micro-agri loan borrowers.
Agriculture loans to boost microfinance sector growth
April 8, 2011 By Leave a Comment
Business World – The country’s microfinance industry sees more growth in providing savings and micro insurance to low-income individuals and offering more agriculture oriented microfinance products.
“The microfinance industry is going to grow, as opportunities such as providing agri-microfinance products are now being tapped.
[Moreover,] microfinance has a strong prospective with financial tools such as providing savings and micro insurance to the unbanked sector,” central bank deputy governor Nestor A. Espenilla, Jr. told BusinessWorld at the sidelines of the Microfinance Stakeholders Summit at the Bangko Sentral ng Pilipinas (BSP) yesterday.
“The BSP is now partnering with other government institutions and the stakeholders in developing and regulating these up-and-coming microfinance products,” he added.
Microfinance primarily involves the extension of credit to poor borrowers who are normally turned away by the banks. The loans are often used to jumpstart enterprises-mostly buying and selling on a micro scale-and are regarded as a poverty alleviation tool.
Microfinance institutions, however, have now extended their financial services into providing savings and micro insurance opportunities to low-income individuals.
RBAP-MABS Program trains Mindanao rural banks on Agriculture Microfinance
February 26, 2011 By Leave a Comment
Being relatively typhoon-free compared with the Luzon and Visayas regions, Mindanao is ideal for agricultural activities. Crops such as bananas, cacao, solo papayas, pineapple and coconut have been important exports to other countries. Vegetable farming linked to institutional buyers as important actors within the product value chain have been gaining a foothold among small farmers in provinces like Misamis Oriental and Bukidnon.
Although rice is still among the primary crops that many small farmers continue to produce, six (6) MABS participating banks are taking the steps to approaching agricultural finance through the lens of value chain. [Read more...]
MABS and 1st Valley Bank visit GEM-Assisted small vegetable farmers in Malaybalay, Bukidnon
December 18, 2010 By 1 Comment
On December 16-17, a team composed of the RBAP-MABS Technical Specialist and 1st Valley Bank microfinance officers conducted an exposure visit to the Imbayao Community Participatory Action Research Association (ICPARA), an organized group of small vegetable farmers situated along the foothills of Mt. Kitanglad ranges in Malaybalay, Bukidnon.
The ICPARA farming community is a good 30-minute ride to the business district of Malaybalay City, where the group is maintaining a savings deposit with a Local Cooperative Bank. Composed of 30 small landowners growing high value vegetables such as potatoes, carrots and cabbages, the ICPARA group was organized and registered with the Department of Labor and Employment (DOLE) in 2005 with the assistance of the LGU-DA Malaybalay and the USAID-supported Growth with Equity in Mindanao (GEM) progam. Most of its members earn extra income by doing part time jobs as laborers in poultry farms, or as harvesters in large sugarcane and corn plantations in nearby barangays. This makes them eligible as prospective borrowers for micro-agri loans in rural banks.
Managing small farms of ½ hectare per member, these farmers have received training on the technical aspects of vegetable production, organizational capability building, commodity clustering and marketing. The Northern Mindanao Vegetable Producers Association, Inc. (NorMinVeggies), which received support from the USAID-supported GEM project, allows small vegetable producers to consolidate, distribute and sell their produce to institutional buyers, supermarkets and hotels in Metro Manila, the Visayas and parts of Mindanao. NorMinVeggies has 178 registered members composed of small farmers, independent growers, corporate farms and input/service providers.
On December 16-17, a team composed of the RBAP-MABS Technical Specialist and 1st Valley Bank microfinance officers conducted an exposure visit to the Imbayao Community Participatory Action Research Association (ICPARA), an organized group of small vegetable farmers situated along the foothills of Mt. Kitanglad ranges in Malaybalay, Bukidnon.
The ICPARA farming community is a good 30-minute ride to the business district of Malaybalay City, where the group is maintaining a savings deposit with a Local Cooperative Bank. Composed of 30 small landowners growing high value vegetables such as potatoes, carrots and cabbages, the ICPARA group was organized and registered with the Department of Labor and Employment (DOLE) in 2005 with the assistance of the LGU-DA Malaybalay and the USAID-supported Growth with Equity in Mindanao (GEM) progam. Most of its members earn extra income by doing part time jobs as laborers in poultry farms, or as harvesters in large sugarcane and corn plantations in nearby barangays. This makes them eligible as prospective borrowers for micro-agri loans in rural banks.
