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