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Calaya Weavers Association

Project Title: Technology Upgrading and Development for Calaya Weavers Association (CWA)
Project Site: Calaya, Nueva Valencia, Guimaras

Rationale

Pandan bag weaving is a viable alternative livelihood in Barangay Calaya. The project requires low capital input with high return on investment that provides an average additional family income of more than P3,000.00 per month compared to roughly P1,500.00 out of mat weaving before the project started. Pandan and piña twine are the main raw materials used in bag weaving and is abundant in the area. Existing skills of weavers are excellent but needs to be upgraded especially in terms of new design and trends.

Recently the demand for trending pandan bags offers bright prospects for the association. However, due to limited production capacity and lack of sewing and drying equipment, they have declined to receive volume orders. Trends in native bags also changes so fast, hence Calaya Weavers Association needs to upgrade its weaving equipment.

The procurement of the needed equipment will increase production from 800 units to 3,000 units per month. This will make the association ready to accept bulk orders.

Goal of the Project

The project aims to acquire technology skill training and facility upgrading for Calaya weavers to engage in product diversification and increase production and to cope with the market demand.

Objectives

1.1 By September 31, 2006, the Calaya Weavers Association shall have acquired, installed and operationalized the sewing and drying equipment.

1.2 By October 31, 2006, technology skills training have been conducted to 60 pandan weavers and shall have developed one prototype each for new design.

Project Components

Project components will be provisions of equipment (1 unit heavy duty and 1 unit light duty) sewing machine, a dryer for drying quality raw materials and the technology skills training which includes company study tour or trade fair participation. The acquisition of this technology will boost the production capacity, encourage product diversification and market expansion. The association aims to carry out prototype of pending new product design utilizing the combination of different indigenous and synthetic materials.

1. Equipment Upgrading

The equipment will be procured in Iloilo City. NVTSC will procure the equipment with the supervision of the Department of Labor and Employment (DOLE). CWA will provide the Project Production Center as counterpart before the project installation.

2. Technology Skills Training

The conduct of skills training will be conducted and attended by 60 women weavers of Calaya and neighboring barangay with special reference those who have affected by the Oil Spill victims. DOLE and DTI will linkage for the resource person and assist in the conduct of the training.

A three-day technology transfer training will be focus on the operations of equipment and its application to new product design using the indigenous and synthetic materials and other product with market demand. The training output will be the prototype of different new product designs.

The CWA will be encouraged to participate in the trade fair to contact more market linkage and buyers for the products.

The project will implemented by NVMTSC and directly manage by the CWA.

Amount of Assistance Requested

The Nueva Valencia Multi-purpose and Transport Service Cooperative is requesting the Department of Labor and Employment to fund the project for Technology Upgrading and Development of Calaya Weavers Association amounting to P100,000.00. The NVMTSC appeal for immediate approval and release of fund so that the project can start assisting the oil spill victims in whatever capacity.

Critical Activities

Activities	Schedule (2006)
	Sept	Oct	Nov	Dec
Preparation and Submission of Project Proposal
Approval for Funding
Procurement and Installation
Technology Skills Training and Prototype Making
Product Evaluation/ Redesigning
Market Linkage

Project Partner

• MS. EDNA E. GABAYERON

Manager

Nueva Valencia Multi-purpose and Transport Services Cooperative

Concordia, Nueva Valencia, Guimaras

Project Co-Partners

• DIOSDADO G. GONZAGA

Mayor

Municipality of Nueva Valencia, Guimaras

• JOSE M. DIVINAGRACIA

Provincial Director

Department of Trade and Industry

Guimaras Provincial Office

• REGINA L. CASPILLO

PARO

Department of Agrarian Reform

San Miguel, Jordan, Guimaras

***DTI-CARP assisted in the preparation of the Business Plan for the benefit of 60 women weaving pandan and making piña twine and oil spill victims of the Barangay Calaya and its neighboring barangays.

DTI-CARP Initiated OTOP
Salt Industry of San Lorenzo, Guimaras

Quick Facts on San Lorenzo:
Land Area : 93.04 sq km
Population : 20,168
Population Density : 217 persons/ sq km
Household Population : 20, 156
Number of Barangays : 12
LGU Income Classification : Fifth

Industry Status and Performance (2004)
Source: Municipal Fisheries, Salt Industry Profile prepared by POAS and DTI

Production period (January to May) :120 days
Total production area :14.16 ha.
Average plastic roll per hectare :150 rolls
Total number of plastic sheets :2,124 rolls
Annual production output :12,744 MT
Average yield per hectare :900 MT
Average yield per plastic roll :1 sack (50kg)
Average number of rolls per producer :8.56 rolls
Average output per producer :51.387 MT
No. of salt producers :248
No. of direct labor employed :992
Ave. No. of labor employed per producer :4
No. of salt producers association :11

Production Performance

	2000	2001	2002	2003	2004
No. of Plastic Rolls	967	1,040	1,440	1,311	2,124
Area of Salt Farm (in hectares)	6.45	6.93	9.60	8.74	14.16
Production Volume (MT)	5,800	6,240	8,640	7,866	12,744

Sales Performance

	2000	2001	2002	2003	2004
Sales (PhpM)	8.584	10.483	15.552	16.361	20.056
Annual Sales per Producer (Php'000)	46.40	35.70	51.80	61.30	117.16
Ave. Price (Php) Peak Months*	50.00	60.00	70.00	80.00	90.00
Ave. Price (Php) Lean Months**	110.00	120.00	120.00	140.00	150.0

* 60% of production sold during peak months
** 40% of production retain and sold during lean months

Producers and Labor Employed

	2000	2001	2002	2003	2004
No. of Producers	185	294	300	267	248
No. of Labor Employed	395	443	564	520	992

Market Distribution (2004)			Sales Distribution (2004)
Province	Percent (%)		Province	Pesos
Bantayan, Cebu	15%		Bantayan, Cebu	4,538,000.00
Guimaras	3%		Guimaras	872,000.00
Iloilo	34%		Iloilo	9,879,000.00
Neg. Occ.	38%		Neg. Occ.	11,041,000.00
Palawan	10%		Palawan	2,905,000.00

Industry Structure and Key Players

Municipal Level

• San Lorenzo Federation of Fisherfolks Association

Barangay Level

• M. Chavez (Himakas) Fisherfolk Association
• Suol Farmers and Fisherfolks Association
• Bangkiling Neighborhood Association
• Suclaran Fisherfolk Association
• Eleventh Street Fisherfolk Association
• Kapawa ni Kristo Multi-purpose Cooperative
• Cabano Irrigators Association – Fisherfolk Sector
• Igcabano-Balabago Farmers and Fisherfolks Association
• Igcawayan Hugpong Association
• Sebario Farmers and Fisherfolk Association

Fishpond Owners (8)

Traders (2)

• Teresita Cokin
• Jerry Javellana

Agents (3)

• Clarita Gabalonzo
• Fely Mogatar
• Nelida Gananan

Financiers

• No data available

Industry Problems/ Issues

Marketing

• Prices dictated by middlemen
• Product not properly priced
• Cutthroat competition
• Lack of access to direct buyer
• Use of recycled packaging materials
• Absence of label
• Competitors from Iloilo and Mindoro
• Price elasticity of demand

Production

• Increasing rental cost of fishpond
• Increasing cost of plastic sheets
• Concentrated seawater not clear
• Absence of sanitary collecting well
• Production not uniform in color (whiteness)
• Poor product quality
• Inadequate technological know-how
• Tedious system of water distribution
• Rain splash contaminates salt beds

Organization and Management

• Disunited industry players
• Lack of commitment of members
• Weak organization and management structure
• Lack of respected industry leaders
• Lack of industry long-term direction
• Lack of industry business information

Finance

• Inadequate recording system
• Lack of equity/ capital build-up
• Liquidity problem/ cash flow
• Highly dependent to financiers
• Poor loan repayment performance
• Disregard loan obligations
• Absence of collateral to support loan

Agencies Involved

• Municipality of San Lorenzo
• Provincial Economic Development Office (PEDO)
• Provincial Office of Agricultural Services (POAS)
• Department of Agriculture - Bureau of Fisheries and Aquatic Resources (DA-BFAR)
• Department of Science and Technology (DOST)
• Technical Education and Skills Development Authority (TESDA)
• Department of Trade and Industry (DTI)

Industry Strength

• High growth potential
• High profit potential
• Can attain financial stability
• Simple technology
• Product quality can be standardized
• Ease to entry into market
• Productivity capacity utilization
• Market share can be improved
• Control over suppliers and distribution is possible

Activities Undertaken

• Appropriate technology transfer on refine salt production
• New product introduced: refined iodized salt
• Product development of refine salt, application of anti-caking agent, packaging and labeling
• Technology transfer on solar salt production in Cabano by the Agricultural Training Institute
• Organizational strengthening of M. Chavez Farmers and Fisherfolks Association
• Introduced capital build-up scheme
• P 250,000.00 financing from the provincial government
• P 84,500.00 financing from the LGU-San Lorenzo for plastic rolls
• Registration of 4 Salt Traders with DTI
• LGU-OMA provided coaching on financial recording
• Dialogue with Mayor Zambarrano
• Consultative meeting with buyer