P1-B Landbank loan boosts Ecija cooperative’s expansion
A cooperative based in Nueva Ecija secured from state-run Land Bank of the Philippines a total of P1 billion in loans, intended to help finance the group’s expanded operations.
According to Landbank, the latest funding is substantially bigger than the initial loan of P120,000 tapped by the newly established Nagkakaisang Magsasaka Agricultural Primary Multi Purpose Cooperative (PMPC) three decades ago, for use as working capital.
The latest loan to Nagkakaisang Magsasaka Agricultural PMPC now covers relending to finance the production activities of its members, rice and agri-inputs trading, diesel retailing, rice milling, onion cold storage rental and trading, and importation of milled rice and fertilizers produced by its members.
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Of the P1 billion, P112 million was earmarked for the construction of an onion cold storage with a capacity of up to 60,000 bags of onions.
The facility, which started operation in April this year, is expected to benefit farmers in the towns of Bongabon, Guimba, Gabaldon, Llanera and Talavera.
It also supported the construction of warehouses and an onion cold storage, and the acquisition of farm machinery and equipment to improve agricultural productivity.
“By empowering agricultural cooperatives, we are also enhancing small farmers’ access to credit, technology and other critical resources for growth,” Landbank president and CEO Lynette Ortiz said in a statement on Thursday.
Established in 1992 with 16 members, the cooperative is now able to the meet growth requirements of its members through the entire rice production process from planting to marketing and distribution.
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The cooperative also offers credit support to finance onion production and buys members’ produce at a more “lucrative” price compared to other markets in the province to support the local onion industry.
Landbank said PMPC is also diversifying its operations to assist its onion farmer-members and strengthen the local onion value chain.
“With the help of Landbank, our cooperative has funded various projects and helped many palay farmers. Now, we are assisting onion farmers in Nueva Ecija to boost their production,” said the cooperative’s chair Ricardo Buenaventura, a rice farmer.
To date, the group has 1,500 members consisting of farmers producing rice, onion and other high-value crops; backyard poultry and livestock raisers; and micro, small and medium enterprises such as sari-sari store owners.
“We look forward to partnering with more agri cooperatives towards increasing productivity and ensuring food security in the country,” Ortiz added. —JORDEENE B. LAGARE
