Department of Agrarian Reform

CABEARBCO: Realizing members' dreams the cooperative way

Callawa, Davao City - With continuous support, trust and confidence between members and officers and pleasant working relationship with the management of Lapanday Agricultural Dev. Corp. (LADECO), and coupled with constant coordination with government agencies, the Callawa and Bonggan Agrarian Reform Beneficiaries Cooperative (CABEARBCO) that started with a share capital of P252,000.00 is now worth Php 15.9 million pesos as of December 2008. The cooperative just celebrated their first decade last March 2009.

Every year for the past 9 years, 99.9 % of CABEARBCO members clad in colored t-shirts gather yearly to actively participate in the organizational and general assemblies of the cooperative.

OIC Provincial Agrarian Reform Officer (PARO) II Ernesto B. Tan and Municipal Agrarian Reform Officer (MARO) Laura Loria always find time to attend their yearly General Assemblies even if its held on a Sunday.

CABEARBCO was organized by the Department of Agrarian Reform (DAR) and registered with the Cooperative Dev. Authority (CDA) on March 2, 1999. Its first dream became a reality when DAR Davao City, awarded to the cooperative 130 hectares of land through the Comprehensive Agrarian Reform Program (CARP), under a compulsory acquisition (CA) mode.

Todate, the area has 79.5 hectares of Cavendish bananas, 19 hectares of gemelina and mahogany trees, 2.5 hectares of mango and 3.2 hectares as their CABEARBCO village.

The cooperative which was a close type for the past 9 years has decided to expand its membership to the spouses and dependents starting year 2009. A P500.00 minimum initial share capital is required per new member to be invested in the coop.

The cooperative originally has 113 members with only 1 female member who is in charge of the labor-contracting services.

Leonila Quejada, the only female ARB whose husband is the company guard of LADECO. She said she is very fortunate to be a member of CABEARBCO.

"I am given the trust and confidence by co-members and this gives me an inspiration to perform my job well as in-charge of manpower services", Quejada added.

In order to gain the necessary expertise, skills and farming technology in banana production, CABEARBCO has leased back 70 hectares to LADECO, the former owner.

The advance lease rentals were used to finance the operations of the cooperative. Under their Agricultural Ventures agreement (AVA) LADECO would rent the land for 30

years for Php 28,000 - Php 32,000 per year per hectare. The land rental increases yearly until the agreement expires.

To ensure payment for land amortization with the Land Bank of the Philippines CABEARBCO authorized LADECO to deduct P13,000.0 per hectare for its land amortization.

From the proceeds of the advances from lease rentals, in the year 2005 one million pesos was set aside for their lending services. Last year the coop. earned a net income of Php 249,378.90. Lately the cooperative has expanded its lending strategies by providing loan to members with ATM cards. For its initial offering 3 pensioners were served totaling to P37,000.00.

"The cooperative has helped me financially. I can always borrow whenever I need money at a low rate," said Samuel Igagamao, a member. "I am proud to be a CABEARBCO member, and I will be happy to attend every seminar for the members", Igagamao added.

"LADECO management has always been supportive of our cooperative," Gil Jurial, CABEARBCO Chairperson was all praises for the company. "The company has given job contracting and manpower services in the area exclusively for us", Jurial added..

Among job contracting activities are proper drainage system, stalk disposal, preparation of organic fertilizers from banana stalks, plantation maintenance, just to name a few.

The coop. has hired 103 contractual workers as of March 2009 to do these tasks. The workers enjoy minimum wage pay complete with PhilHealth and SSS benefits.

The cooperative is still waiting for another 5 hectares to be awarded to them by the Dept. of Agrarian Reform.

CABEARBCO plans to include to lease it back to LADECO.

CABEARBCO has subdivided 3.2 hectares into 168 square meter lot per member. This "Handog Lote" housing program located in Bonggan is for free to its 113 members. They would call it an Agrarian Reform Beneficiaries Village.

Also another .3500 hectare agricultural lot in Callawa bought for P325,000 was subdivided into 31 residential lots at 140 square meters for the coop. members. The residential lot worth P30,000 is payable in 5 years after paying a down payment of Php 5,000.00. As of March 2009, there are only 6 lots remaining for sale.

The cooperative has also a consumer store strategically located at the poblacion. Two storekeepers manned the store paid at 40% of net income monthly. Each of them earn an average earns P7,000.00 each monthly.

In all of these projects, the biggest indicator of the growing cooperative is the increase in patronage refund and dividends which is distributed yearly.

With the sincere efforts of the officers, and awareness of members, we know we can achieve our plans, our dreams," said coop. member Virgilio Alderite.

Wendel Rabayo, LADECO area administrative manager, said "a pleasant working relationship should be maintained for the good of the cooperative and the company."

As part of the company's corporate social responsibility LADECO launched last 2005 its scholarship program. Ten dependents of agrarian reform beneficiaries (arbs) availed of the said study now pay later plan. The 10 scholars pursued 4 year courses, but only 8 graduated.

Tuition and other school fees were paid in full by the company upon enrollment. Book allowances and stipends are also provided to the scholars. The company shall assist the graduates to look for employment. Payment for the scholarship will start 6 months after graduation. If not employed, the parents pay through salary deduction.

According to Nestor Valonican, father of one of the scholars, the scholarship was like a "manna from heaven." "My daughter was able to enroll in the course she really wanted with terms affordable and convenient to a mere employee like me." he said.

For the year 2008 a net income/surplus of Php 1.774 million from their job contracting; Php 465,390 from mango production; Php 228,256 from their consumer store operations, Php 249,378 from lending or a total net surplus of Php2.607 million for year 2008, higher than the Php 1.399 million for year 2007. This is on top of their lease rental of P32,000 per hectare or a total of Php 2.240 million.

As of December 2008, CABEARBCO has a total assets of Php15.3 million. Total share capital of members totaled to Php 9.550 million which includes the cash paid by members to LBP for land amortization. From an initial capital share of Php 250,000.00, it grew to Php 9.550 million in a span of 9 years.

PARO TAN said that what the cooperative has achieved for the past 9 years is a product of teamwork and unity among the members, officers, and LADECO management. CABEARBCO is one of the strong cooperatives under the Agrarian reform community (ARC) of Callawa, Buhangin, Davao City.

The cooperative is supportive of the yearly activity of DAR Davao City called "Pakiglambigit" where CARP stakeholders gather together in a fellowship.

DAR has provided CABEARBCO for 2008, organizational trainings like Membership Education Program (MEP) and Strategic Planning Workshop wherein 1 year action plan and medium term plans are formulated.

Last October 5, 2008, selected officers of CABEARBCO underwent a Policy Formulation Seminar to strengthen their cooperative's policies.

Development Facilitator Cleza Datoy observed that the cooperative is first and foremost a service oriented coop. "With a 2 million net surplus for year 2008, the coop. could very well afford to give higher honorarium and yet the officers opted to receive less a thousand every month", Datoy added.

Ma. Laura Loria, municipal agrarian reform officer (MARO) of Buhangin, told the members of CABEARBCO not to be contented with what they are enjoying now. "I urged all officers and members to continue to be wise investors." Said Loria, who was known to constantly call on the cooperative to seek other business opportunities. "Invest your money," was her constant prodding.

OIC PARO II Tan takes pride in what the cooperative has attained. He endorses the cooperative as one of the outstanding cooperatives in Davao City. CABEARBCO was able to sustain the growth and development of their cooperative for the past 9 years. "Continue to keep doing what's best for the members and the cooperative", Tan said

Since year 2001 until 2008 the cooperative has maintained a level 5 ARC Level of Development Assessment (ALDA) rating, and a level 5 Organizational Maturity Asessment (OMA) since 2003, the highest, which proves that the cooperative has found a niche and success in their community.

CABEARBCO is one of the stable cooperatives in Davao City. In terms of organizational maturity (OM) it has maintained the highest level rating of 5 since 2003. CABEARBCO belongs to the agrarian reform community (ARC) of Callawa where it has also maintained the highest level 5 rating for 8 straight years since 2001. This just proves that the cooperative has found a niche and success in their community.

For this year 2009, the coop. is still waiting for the Php 1 million grant from the Dept. of Labor and Employment (DOLE) intended for their banana flour food grade project. The Dept. of Trade and Industry (DTI) assists them in the preparation of the project proposal. The raw materials for banana flour is provided by LADECO for free. LADECO is willing to rent out half hectare to CABEARBCO for this project.

CABEARBCO also plans to tie up with TESDA for a 3 month computer course program for its members and dependents for free. The second floor of the consumer store building serves as the learning center. Initially 2 sets of computer shall be purchased for this venture. The General Assembly has allocated P60,000.00 for this. Mr. Gil Jurial, CABEARBCO Chairperson hopes this will be implemented this year 2009.

Whatever success the cooperative would have, the community would stand to benefit from it.