national food authority accomplishment report - NFA

NATIONAL FOOD AUTHORITY
ACCOMPLISHMENT REPORT
for the year 2008

National Food Authority
NATIONAL FOOD AUTHORITY
ACCOMPLISHMENT REPORT
for the year 2008
FOREWORD
The National Food Authority has just been through a though time in 2008 having
undergone a rice crisis that swept many parts of Southeast Asia and the world. The
limited stocks in the world market, if ever available were at their highest prices
compared to what they were five years ago. Traditional rice exporters though
perennially enjoy surpluses, held on to their stocks to protect their domestic market
from price surges. This left importing countries exploring for other sources for their
requirements.
The Philippines, a traditional importing country, felt the impact of such extremity.
Long queues for NFA rice were visible in many parts of the country as commercial
rice prices surged to an all-time high. Though commercial stocks were sufficient,
these stocks were not affordable to ordinary people.
The NFA as the marketing arm of the government was however able to negotiate
and import rice in time that filled in the gap in the supply of affordable stocks. The
unloading of these stocks in domestic market enabled the agency to contain the
volatility of rice prices at least before the onset of the lean supply period.
Towards the last quarter of the year, NFA readily procured the domestic produce of
the farmers to provide them with a fair return on their investments. Such
procurement involving heavy disbursement of funds to pay for the farmers’ palay
spurred economic activities in the countryside. It is also resulted into NFA’s building
up its buffer stocks.
Thus, once again, the NFA takes pride in having maintained another stable year of
successfully undertaking its noble mission of safeguarding the nation’s food security.
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National Food Authority
1. FOOD SECURITY
1. Food Security and Buffer Stock Maintenance
As of December 31, 2008 NFA managed to maintain a national strategic rice
reserve at 18,701,506 bags of rice or 935,075 MT good to last for 28 days
computed based on 33,000 metric tons daily consumption requirement.
Chart 1: NATIONAL RICE STOCK INVENTORY BY SECTOR, 2008
(in '000 MT)
Household
12,831.30
49%
NFA
8,206.70
31%
Commercial
5,139.30
20%
NFA
Commercial
Household
MONTH
Table 1. RICE STOCK INVENTORY BY SECTOR, PHILIPPINES, 2007 AND 2008
(In ‘000 MT)
NFA
COMMERCIAL HOUSEHOLD NFA TOTAL
SHARE
2007 2008 2007 2008 2007 2008 2007 2008 2007 2008
Jan 373.6 457.4 1,424.3 1,363.0 471.2 351.4 2,269.1
Feb 330.8 437.9 1,153.8 1,134.2 353.9 276.1 1,838.5
Mar 320.8 410.8 993.7 992.2 269.9 280.0 1,584.4
Apr 346.8 343.0 1,131.6 1,152.8 186.2 404.3 1,664.6
May 452.6 484.7 1,184.7 1,178.1 256.2 599.6 1,893.5
Jun 402.6 451.1 972.5 976.9 247.3 771.0 1,622.4
Jul 344.2 380.5 863.7 886.5 313.2 943.8 1,521.1
Aug 277.8 347.5 690.1 699.7 388.2 856.9 1,356.1
Sep 233.6 358.8 604.1 690.7 304.9 866.0 1,142.6
Oct 331.5 413.9 769.9 843.2 285.3 933.4 1,386.7
Nov 377.3 539.4 1,365.7 1,431.5 287.4 966.9 2,030.4
Dec 456.8 514.3 1,479.9 1,482.5 354.7 957.3 2,291.4
TOTAL 4,248.4 5,139.3 12,634.0 12,831.3 3,718.4 8,206.7 20,600.8
2,171.8 20.8 16.2
1,848.2 19.2 14.9
1,683.0 17.0 16.6
1,900.1 11.2 21.3
2,262.4 13.5 26.5
2,199.0 15.2 35.1
2,210.8 20.6 42.7
1,9041. 28.6 45.0
1,915.5 26.7 45.2
2,190.5 20.6 42.6
2,937.8 14.2 32.9
2,954.1 15.5 32.4
26,1773 18.0 31.4
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National Food Authority
2. Importation
This years huge rice imports was recorded at around 2,309,301.50 MT of rice
which was undertaken as a means to stabilize rice prices by saturating the
market low priced NFA rice to pull down the high price of rice in the market this
volume is 20.21 % higher than 2007 which only stood at around 1,921,000 MT of
rice.
Bidding Date
Contracted
Volume (MT)
Table 2 : 2008 Rice Import Arrival
Actual Import Arrival %
1 st Sem 2 nd Sem Total Accomplishment
21-Dec-07 422,701.50 402,767.00 402,767.00 95.28
29-Jan-08 462,750.00 437,780.45 9,415.00 447,195.45 96.64
11-Mar-08 387,250.00 343,795.00 45,355.00 389,150.00 100.49
17-Apr-08 364,000.00 219,787.00 143,591.70 363,378.70 99.83
13-Jun-08 600,000.00 600,000.00 600,000.00 100.00
GSM 102 72,600.00 60,662.91 60,662.91 83.56
TOTAL 2,309,301.50 1,404,129.45 859,024.61 2,263,154.06 98.00
2. STABILIZATION
With the stabilization mandate of NFA, the agency sees to it that prices at the farm
gate allow reasonable returns on the farmer’s investment, and that there is always a
ready and adequate supply of rice at affordable prices in the market.
A. Palay Procurement
Palay procurement through NFA’s direct intervention was recorded at a total of
13.7 M bags for 2008. This total is 1,340.72 % higher than 2007’s.
On the early part of the year, the price of fuel started to go up alongside with the
price of farm inputs which greatly affects the agricultural sector of the country,
more specifically the rice farmers.
To help the farmers cope up with this situation, the NFA, increased its buying
price of palay from P12.00/kg. to P17.00/kg. last April This increase makes
NFA’ buying price higher than the prevailing ex-farm price which results in the
high accomplishment in NFA procurement.
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National Food Authority
The increase in the buying price of palay averaging at P850 per bag plus the
fertilizer incentive of P1,800 for every 50 bags sold to the agency which took
effect last August 2008 makes it attractive for farmers to sell their palay to NFA.
Hence, the high accomplishment in palay procurement.
For the year, NFA procured a total of P13,696,226 bags of palay or 91.39 % of
the annual operational target set at 14,987,220 bags the highest recorded in 29
years.
in '000 Bags
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Chart 2: NFA Palay Procurement, January to December 2008
(in '000 Bags)
Jan
Feb Mar Apr May Jun Jul Aug Sep
Oct Nov Dec
2007 32.49 9.62 2.36 3.65 4.39 0.61 0.06 0 15.59 380.79 244.45 275.59
2008 40.37 14.17 23.3 41.62 88.6 2.04 64.67 540.18 2130.3 3965.0 4092.7 2693.1
P/KG
19.00
18.00
17.00
16.00
15.00
14.00
13.00
12.00
11.00
10.00
Chart 3: NFA Average Palay Farm Prices vs NFA Buying Price
from January to December 2008
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007 10.25 10.69 11.19 11.13 11.55 11.81 11.99 11.74 10.61 10.69 11.18 11.73
2008 11.80 12.04 13.96 15.56 16.00 18.19 17.08 14.92 13.57 13.26 13.19 13.70
NFA 12.00 12.00 12.00 17.00 17.00 17.00 17.00 17.00 17.00 17.00 17.00 17.00
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National Food Authority
As of December 2008, NFA granted P 382.52 M fertilizer incentive to farmers for
selling 12,203,455 bags of palay to the agency.
Table 3: FERTILIZER INCENTIVE GRANTED TO FARMERS
REGION PALAY PROCURED INCENTIVE GRANTED
PHILIPPINES 12,653,455 416,785,887
NCR 402 77,200
Ilocos Region 1,343,790 48,224,264
Cagayan Valley 1,329,375 41,528,677
Central Luzon 3,227,877 87,832,500
Southern Tagalog 2,837,315 79,616,004
Bicol Region 949,881 31,352,600
Wes tern Visayas 903,913 31,557,600
Central Visayas 7,294 106,800
Eastern Visayas 24,990 829,044
Western Mindanao 70,242 2,447,525
Northern Mindanao 306,166 10,008,800
Caraga Region 112,468 38,070,905
Southern Mindanao 456,020 13,734,566
Central Mindanao 971,764 31,276,678
ARMM 111,958 122,724
B. Rice Distribution Program
For the year NFA was able to distribute 40.26 M bags or 20.01 MT of rice. This
volume is 970.1% higher than year 2007 which is 1.87 MT of rice. The huge
volume in the distribution of NFA rice is due to the increase in the commercial
price of rice which reached as high as P39.10/kg. in June but tapered off by
September with an average of P32.18/kg.
The largest share of 24% or 9.80 million bags of rice were distributed to NCR
followed by Central Luzon at 10% or 3.81 M bags, Southern Tagalog at 9% or
3.70 M bags, Bicol Region and Central Visayas at 7% or 2.95 M and 2.95 M bags
respectively, and the rest is distributed to different regions of the country.
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National Food Authority
14
12
10
8
6
4
2
0
Chart 4: Distribution of NFA Rice per Region
from January to December 2008
(in Million Bags)
Actual
Target
TABLE 4: AVERAGE PREVAILING WHOLESALE/RETAIL PRICES OF RICE AND CORN, PHILIPPINES 2008
(Peso /kg)
COMMODITY
WHOLESALE
Well Milled Rice (WMR)
Regular Milled Rice (RMR)
Yellow Corn Grains (YGN)
White Corn Grains (WGN)
RETAIL
Well Milled Rice (WMR)
Regular Milled Rice (RMR)
Yellow Corn Grains (YGN)
White Corn Grains (WGN)
THIS YEAR
LAST YEAR
29.82 22.59
27.14 20.66
13.07 11.44
13.94 11.88
32.71 24.72
29.39 22.39
18.09 18.04
17.82 15.31
PERCENTAGE
INCREASE/DECREASE
32.01
31.36
14.25
17.20
32.32
31.36
0.28
16.39
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National Food Authority
TABLE 5:NFA TOTAL RICE DISTRIBUTION PER MARKET OUTLET, PHILIPPINES 2008
(In 50 kg bag)
NFA RICE DISTRIBUTION PRO-POOR 1 2 TOTAL SALES
STABILIZATION VOLUME
%
SHARE
Community Based Outlets
Market Based Outlets
Other Programs
Disaster and Calamity Response TOTAL
19,259,891
5,862,763
766,516
650,199
26,539,369
734,420
9,987,304
2,845,671
149,242
13,716,637
Source : NFA Grains Situationer as of December 31, 2009
1 Rice Sold at P 18.25/kg
2 Rice Sold at P 20, P 25, P 35/kg
19,994,311 49.67
15,850,067 39.37
6,612,187 8.97
799,441 1.99
40,256,006 100.00
NFA Community Based Outlets registered the largest share at 49.67% followed
by the Market Based Outlets at 39.37%, Other Programs were and Disaster and
Calamity Response at 8.9% and 1.99% respectively. The total distributed volume
for the NFA Pro-poor program which sells P18.25/kg. of rice reached 69.93% of
the total rice distribution for the month.
For the year NFA distributed 26,539,369 bags of rice or 66% of the total
distribution for the agency’s pro poor program.
Chart 5: Total NFA Rice Distribution for Pro Poor Program, 2008
(in '000 MT)
Other Programs
766,516
3%
Disaster and
Calamity Response
650,199
2%
Community Based
Outlets (CBO)
19,259,891
73%
Market Based
Outlets (MBO)
5,862,763
22%
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National Food Authority
1. NFA Market Based Outlets (MBO)
For the year, a total of 15,850,067 bags of rice or 39.37% of the total rice
distribution of 40,256,006 bags were distributed through the NFA Market
based outlets.
TABLE 6: SALES VOLUME,NFA MARKET BASED OUTLETS, PHILIPPINES 2008
(In 50 kg bag)
NFA RICE DISTRIBUTION PRO-POOR 1 2 TOTAL SALES
STABILIZATION
VOLUME
%
SHARE
Institutionalized BGP (IBGP) 5,319,467 9,914,877 15,234,353 96.12
Barangay Food Terminal 84,615 23,594 107,909 0.68
NAF Operated Outlet 458,972 48,833 507,805 3.20
TOTAL 5,862,763 9,987,304 15,850,067 100.00
Source : NFA Grains Situationer as of December 31, 2009
1
Rice Sold at P 18.25/kg
2 Rice Sold at P 20, P 25, P 35/kg
2. NFA Community Based Outlets
For the year, a total of 19,994,311 bags of rice or 49.67% of the total rice
distribution were distributed through the NFA Community Based Outlets. The
community based outlets sells rice at P18.25/kg. outside the market. Out of
this volume 96.33% or 19,259,891 bags goes to the pro poor program which
sells rice at P18.25/kg. Breakdown of Community Based Outlets follows:
TABLE 7: SALES VOLUME,NFA COMMUNITY BASED OUTLETS, PHILIPPINES 2008
(In 50 kg bag)
NFA RICE DISTRIBUTION PRO-POOR 1 2 TOTAL SALES
STABILIZATION
VOLUME
%
SHARE
Tindahan Natin Outlets (TNO) 13,532,643 72,599 13,605,242 68.05
Tindahan Natin-Legislators Fund (TN-LF) 364,694 7,310 372,004 1.86
Tindahahn sa Parokya (TSP) 1,455,055 25,580 1,480,635 7.41
Bigasang Bayan Outlet – LGU 2,182,123 498,035 2,680,158 13.40
Bigasang Bayan Outlet-Legislators 118,065 24,193 142,258 0.71
Barangay Food Terminal (BFT) 189,394 17,253 206,647 1.03
Rolling Store - NFA Operated 1,302,083 80,019 1,382,102 6.91
Kalahi 115,834 9,431 1,25,265 0.63
TOTAL 19,259,891 734,420 19,994,311 100.00
Source : NFA Grains Situationer as of December 31, 2009
1
Rice Sold at P 18.25/kg
2 Rice Sold at P 20, P 25, P 35/kg
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National Food Authority
3. Other Programs
For the year, NFA’s rice distribution for other programs reached 8.9% of the
total distributed volume or 3,612,187 bags of rice Breakdown follows:
TABLE 8: SALES VOLUME,OTHER PROGRAMS, PHILIPPINES 2008
(In 50 kg bag)
NFA RICE DISTRIBUTION PRO-POOR 1 2 TOTAL SALES
STABILIZATION
VOLUME
%
SHARE
Food for School Program 216,462 1,791,592 2,008,054 55.59
Military Camps / Commissary / AFPCES 20,639 3,996 24,365 0.68
DBM-Procurement Service 11,715 6,440 18,155 0.50
Government Agencies/ Hospitals 68,968 437,694 506,662 14.03
LGU Cooperatives/Commissary 60,978 41,897 102,875 2.85
Bureau of Jail Management and Penology
(BJMP)
66,550 35,899 102,449 2.84
Senior Citizens 2,332 4,146 6,478 0.18
PAGCOR 6,201 740 6,941 0.19
Pamaskong Handog 8,723 9,916 18,639 0.52
GEPFORA 14,731 2,937 17,668 0.49
TRANSPORT GROUP 66,714 28,941 96,655 2.68
IFAD 1,674 83,475 85,149 2.36
Fair Purchase 2,729 2,249 4,978 0.14
NFA Rice Donations 162 385 457 0.02
E.O. 51 69,402 120,914 190,316 5.27
Rice Allowance/ NFA Rice Donations 18,835 26,612 45,447 1.26
SMDP/Bidding/Auction 93 103,808 103,901 2.88
Others 129,608 143,030 272,638 7.55
TOTAL 766,516 2,844,671 3,611,827 100.00
Source : NFA Grains Situationer as of December 31, 2009
1
Rice Sold at P 18.25/kg
2 Rice Sold at P 20, P 25, P 35/kg
4. Disaster and Calamity Response
The agency’s program on food security is geared towards addressing
calamities and emergencies. It aims to ensure the availability of rice within the
48-hour response time and restore or maintain the price of rice immediately
after the calamity or emergency for the purpose of rehabilitation.
For the year, NFA distributed 799,441 bags of rice for relief operations or
1.99% of the total rice distribution for the year.
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National Food Authority
The chart below shows the distribution to different agencies for this program.
Chart 6: NFA Rice Releases, Emergencies / Relief Operations,, 2008
(in bgs of 50 kg)
PNRC
4,392
1%
NDCC/RDCC/PDCC
21,698
3%
LGUs/Relief
381,575
48%
DSWD
227,356
28%
Others
65,762
8%
NGO'c / Private /
Charitable Institution
75,099
9%
Legislators
23,379
3%
3. Marketing Development Services
A. Corn Development Fund (CDF)
For the year, the Corn Development Fund approved the following projects:
2008 APPROVED PROJECTS AMOUNT
North Cotabato Free Farmers’ Cooperative, Inc. (NCFFCI)
9.97 M
Equity Financing (1) Mindanao - Alamada
8.00 M
Phase 2: Additional 15 Bio-N Projects
7.50 M
Commodity Exchange Program
0.50 M
Corn Congress (Cebu)
0.30 M
National Federation of Hog Farmers Inc. (Iloilo)
0.30 M
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National Food Authority
4. Infrastructure and PHF Development Services
1. Post Harvest Facility Upgrading and Modernization Program
For the year, a total of 548 projects (229 COF and 319 RTM projects) proposed
by the NFA field offices nationwide were programmed for implementation. The
implementation of these projects was attended to facilitated and monitored by the
Technical Services Department of the Agency.
CAPITAL OUTLAY PROJECTS *
AMOUNT
NO OF
PROJ.
PROGRAMMED 882,690,300.30 229
%
ACCOMPLISMENT
Completed 117,604,395.63 42 18.34 %
On-Going 64,073,369.27 39 17.03 %
Funded and for Implementation 343,960,140.77 73 31.88 %
TOTAL ACCOMPLISHMENT 525,637,905.67 154 67.25 %
* Including Projects carried–over from previous years
2008 Capital Outlay Projects amounts to P 720,758,462.00 and consists of 158 projects
REPAIR AND MAINTENANCE (RMT) PROJECTS
AMOUNT
NO OF
%
PROJ. ACCOMPLISMENT
PROGRAMMED 45,553,852.13 319
EVALUATED & FUND APPROPRIATED 31,515,515.84 209 65.52 %
a. Construction of Warehouses
The continuous establishment of modern grains post-production facilities
and the regular maintenance of these assets are complementary efforts
geared towards the efficient delivery of NFA’s marketing services to the
nation. These existing Post-Harvest Facilities also supports other
programs of the Department of Agriculture.
During the year NFA completed the construction Five (5) warehouses in
the following provinces:
1. Magatarem, Pangasinan, 30,000 Cavan Capacity
2. Tabaco, Albay, 50,000 Cavan Capacity
3. Libon, Albay, Restoration of Dryerhouse
4. Cebu City, 200,000 Cavan Capacity
5. Calubian Leyte, MLGC cum Trading Post
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National Food Authority
b. Establishment of Corn Center
For the year, NFA facilitated the implementation of Corn Center project at
Alfonso Lista, Ifugao.
c. Rice Fortification Equipment
For the year, NFA Installed three (3) units rice fortification equipment in
Cebu, Cagayan De Oro and NCR and twelve (12) units are undergoing
bidding process
d. Mechanical Dryers with Biomass Furnace
For the year, NFA completed the installation of three (3) units mechanical
Dryers with Biomass furnace. Also, 32 units delivered for testing, 18 units
for delivery and five units with fund approval and to be scheduled for
bidding this first quarter of 2009.
e. Purchase of Moisture Meter
For the year, NFA purchased 175 units moisture meters and being turned
over to the field offices for use. In addition to this number 97 units of
moisture meter is undergoing the bidding process.
f. Purchase of Platform Scale
For the year, NFA also purchased 50 units platform scales which is now
for testing and evaluation.
TABLE 9: INVENTORY OF POST HARVEST, PHILIPPINES 2008
FACILITIES UNITS CAPACITY
NFA Owned Warehouses 294 1,021,514,65
Mechanical Dryer 450 265.4 TPH
Ricemill 78 197.71 TPH
Dehuller 9 29 TPH
Grader 27 116.5 TPH
Polisher 14 42 TPH
Packaging Machine 29 17.07 TPH
Truck Scale 37 -
Moisture Meter 993 -
Platform Scale 989 -
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National Food Authority
5. Research and Development
1. Technical Research and Development
On the technical aspect, NFA was able to accomplish four (4) research projects:
a. Temporary Storage of Wet Corn as Drying Strategy Using Super
Grain Bag- This research was able to ascertain that the quality of wet corn
grains could be maintained in two months using the Super Grain Bag
(farmer friendly 50-kg bag). The Super Grain Bag could therefore be used
as temporary storage for newly harvested threshed corn especially during
the rainy season.
b. Wao Integrated Dryermat - This is a corn processing plant which
primarily composes a heating system, four corn on cob drying bins, a
sheller, six units of batch recirculating dryers and a bagging bin. The
components are integrated with elevators and conveyors. The Wao
Dryermat services the needs of the farmer cooperatives around the
municipality of Wao and neighboring towns particularly on the drying and
shelling of their corn on cobs. The feedback gathered was that the farmers
were happy of the very high shelled corn recovery using the corn
processing plant compared to the corn recovery they were getting when
they have their corn on cob processed by businessmen.
c. Digital Image Processing System (DIPS) for Corn Grains - This
research project is an inexpensive apparatus for corn grains physical
quality analysis. This apparatus minimizes the cost of corn grains analysis
and makes analysis and makes analysis much faster, taking only about
two minutes per sample as compared to the 2-3 hours consumed for
manual analysis which cost P400.00 per sample for complete physical
analysis.
d. Enhancing the Productivity and Competitiveness of Corn Farmers
through sustainable and Use of BIO-N Fertilizer (Corndev Bio-N
Project Phase 1) - This project is CornDev-Initiated project on technology
commercialization of BIO-N a microbial-based fertilizer consisting mainly
of nitrogen fixing bacteria capable of converting atmospheric Nitrogen into
usable form and was found to enhance root development and yield of rice,
corn, sugarcane and selected vegetable crops. It reduces the cost of
chemical fertilizer inputs from 50-75% and increase in yield by as much as
80%.
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National Food Authority
Pase I of the project involved the establishment of 5 pilot BIO-N mixing
plants, out of the targeted 20 mixing plants approved for funding by Corn
Development Fund (Corn Dev)
2. Laboratory Services
During the year, the agency was able to analyze a total of 11,650 grains samples,
11,308 from the NFA and 342 from private institutions. Analyses conducted were
either complete physical analysis or chemical analysis of palay, milled rice, and
corn grains. Of the 342 analysis done for the private institution NFA was able to
generate income of Php 19,438.00
a. ISO Certification of FDC
FDC maintained its certification to ISO 9001:2000 for the adoption of a
Quality Management System. Being ISO certified demonstrates FDC’s
ability to consistency services that meet customer requirements.
b. Rice Fortification Program
In support to R.A. 8976, NFA implemented the Rice Fortification Program
and for the year NFA procured 1,000 MT Iron Rice Premix (IRP). NFA also
procured and installed d3 units of 5 TPH Rice Fortification Equipment
(RFEs) in Cebu City, Cagayan de Oro City and the South District of the
NCR. Five (5) units RFE is scheduled for bidding on December 09, 2008
which is to be deployed in NCR (NDO), Batangas, Capiz, Davao, Isulan,
and Negros Occidental.
As of todate NFA distributed around 36,160.75 MT of Iron Fortified Rice
(IFR) to public school pupils through the Government’s Hunger Mitigation
Programs such as the “Food for School Program” of DepED, DSWD
feeding Programs for preschool children and through NFA accredited
outlets.
6. Extension Support
1. Preparation of the NAFC Farm Level Grains Center (NAFC-FLGC-II)
Operations Manual
The National Agricultural and Fishery Council (NAFC recognizing NFA’s
experience in overseeing the operations of Farm Level Grains Centers (FLGC’s),
requested the NFA thru the Extension Department to prepare the NAFC-FLGC II
Operations Manual. This has been prepared pursuant to a Memorandum of
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National Food Authority
Agreement between the National Agricultural and Fishery Council (NAFC) and
the National Food Authority (NFA) signed on 20 December 2007; an approved
project proposal and terms of reference provided by NAFC ; and a Special Order
No AO-2k8-06-006 issued by NFA on 11 March 2008.
This FLGC Operations Manual covers the entire operations of the FLGC from
organization and management, technical (production and post-production),
marketing, financial, socio-economic and environmental aspect of rice business.
It presents the recommended technologies on rice production, post production
system/process flow (all stages) and control points as well as policies on
organization and management, marketing and financial aspects and indicators for
socio-economic environmental concerns.
2. NFA-JICA (Post Harvest Assistance Program 1 & Post Harvest Assistance
Program II)
From 1987 to March 2002, 129 FOs benefitted from the program consisting of
various PHFs. As of December 2008, cumulative amortization collection
amounted to P14.7M and 7.2M out of the total loan exposure of P171M and
P9.2M for PAPI and PAP II respectively. The collection rate now reached to 90%
for PAP 1 and 81% for PAP II.
3. Liquidation of Grep Funds NFA-ITR (Php 600 M)
The Dryer Assistance Program of the NFA-ITR-GREP has a total fund release of
P106,345,176.01 with completed projects of 746 units MD and 793 units MPDP.
At present, the total amount liquidated is PHP 93v.78 m (89%) and the amount
for liquidation of Php 12.56M (11%). It is interesting to note that after 13 years of
project implementation (1995-present), the agency is still able to coordinate and
facilitate liquidation of the project. Last year 2007, the amount of P1,300,792.80
worth of MD and MPDPs was liquidated from the funds.
4. COOPERATIVE DEVELOPMENT INCENTIVE FUND (CDIF)
The Cooperative Development incentive Fund (CDIF) is a monetary incentive
program for grains farmers who sell their produce to NFA. Said monetary
incentive can be used for the acquisition or rental of post harvest facilities (PHF’s)
and a s subsidy for training expenses. Utilization of the fund was later expanded
to cover purchase of production facilities, production inputs,investments/equity to
secondary cooperatives and purchase of NFA rice. As os December 2008, 50
farmer organizations have utilized/withdrawn a total of P2.62M Bulk of the CDIF
withdrawals or 75% was in the form of NFA rice.
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National Food Authority
5. FARM LEVEL GRAINS CENTER (FLGC)
For the period 1997-2002, thirty eight (38) FLGC’s nationwide loaned P124M. As
of December, 2008, cumulative amortization collection totals to P26.58M or
21.3% of the total loan exposure.
6. MUNICIPAL LEVEL GRAINS CENTER (MLGC)
There are 116 MLGC Projects that have been implemented by NFA, with a total
project cost of P106,392,633.22 since 1998. Of the 116, two (2) are Food
Security Warehouses of 5,000 bag capacity warehouses, with the rest only
3,000 bags capacity warehouses.
7. Regulatory Services
1. Industry Interrelation
a. Licensing and Registration Program
TABLE 10. : SUMMARY OF GRAINS BUSINESS PER LINE OF ACTIVITY, PHILIPPINES 2008 /P
NO OF REGISTERED
BUSINESS TYPE
AND LICENSED
Retailing 67,234
Wholesaling 3,147
Retailing/Wholesaling 9,665
Milling 7,974
Warehousing 11,906
Threshing 439
Shelling 126
Mechanical Drying 490
Transporting 4,874
Others 1,384
/ P – Preliminary
TOTAL 107,239
For the year, NFA generated an income of Php 124.015 M from 85,489
licensees/registrants thereby achieving 139.63 % and 113.36 % of its
target collections licenses respectively. Of the total licensees, 18,288 were
new applicants. During the last quarter of this year, 108,000 pieces of RL
metal plates for 2007 licensees/registrants were distributed to field offices
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nationwide for distribution in their respective areas. (The issuance of Metal
Plate was implemented in 2007 and was being distributed during the last
quarter of 2008). The metal plates provided the agency an additional Php
9,453,008 income net of cost of plates and distribution.
b. Private Sector Rice Importation Program
In the first two quarters of the year, NFA through the Business Regulations
Department prepared and published three (3) Memo Circulars for the
private sector rice importation program. With the exception of the Memo
Circular released in April where there were no availees, a total of
75,794 MT were imported by the 65 licensed rice importers. Salient
features of the Memo Circulars were as follows:
MC AO-2K8-03-025 dated 5 March 2008 allocated 100,000 MT for
farmers’ organization and 63,000 MT for other sectors. Importation was
country specific and in lieu of payment of tariff by the private sector, a
service fee was likewise determined through public auction. The
availees of this program consist of 11 Farmers’ Organizations and 15
from Other Sectors.
MC AO-2k8-04-001 dated 23 April 2008 allowed all sectors to import
from any country without any limit on volume but importers have to pay
50% advance tariff fee. Unfortunately, there were no availees under
this scheme.
Memo Circular AO-2k8-05-001 date 06 May 2008 for 200,000 MT
permitted importers source their rice from any country and service fee
was likewise determined through public auction. The availees of this
program consist of 9 Farmers’ Organizations and 30 from Other
Sectors.
c. Other Programs
The Grains Exchange Programs for Farmers’ Organization and Retailers’
Associations (GEPFORA) program was availed of by farmers’ and
retailers. Sultan Kudarat Farmers deposited their palay where an
equivalent 14,535 bags of rice were drawn from NFA by buyers/retailers of
Cebu, Davao and Tacloban Cities.
Under BRD’s supervision, the Customer Assistance Units (CAU) and the
Text-NFA programs assisted 17,694 clients nationwide providing feed
backs to their queries, complaints, suggestions or any concerns.
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National Food Authority
Philippine Grains Standardization Program (PGSP) – This is a multisectoral
effort led by the National Food Authority to implement or
institutionalize the national grains standards through continous advocacy,
enforcement and monitoring among farmers, millers, grains businessmen
and consumers on grains quality, labeling, weighing and packaging.
During the year, the agency conducted 554 training/briefings/seminars
with 22,261 participants. From this total 2,042 are new participants.
8. Management Efficiency and Financial Viability
a. Personnel Development
Despite of the continuous suspension of the conduct of internal training
programs per AO 103, a total of 573 employees have attended
briefing/workshop facilitated by various department/offices. On external
trainings, a total of 203 officials and employees attended various training
programs with a total expenses for registration chargeable to Manpower
Development Fund in the amount of P 508,780.00
b. Administrative Support and General Services
i. NFA Electronic-Integrated Financial and Operations
Management Information System (E-EFOMIS)
The e-EFOMIS is envisioned as a web based on-line information
system that will link NFA Financial and Operational transactions.
The Development of this system was a recommendation of the
Philippines-Australia Partnership for Economic Governance Reform
(PEGR) and is being monitored by the NFA Council. For the year
the TWG has undertaken the following:
ii. Development of the Following Computerized Systems
PROJECT DESCRIPTION STATUS
Grains Importation
Information System
A web based Lotus Notes application created to
provide NFA management with updated information on
the status of NFA rice importation
This application tends to minimize the communication
expenses just to confirm the status of import
operations in the field offices.
For testing
Leave Monitoring
System
This application aims to provide employees with the
updated information on their leave credits
For testing
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iii. Palengke Watch
To effectively monitor the price and supply of rice in the market
during the lean months period, NFA’s deployed personnel within
Metro Manila and Cavite area to conduct market
inspection/monitoring [Palengke Watch] of NFA’s accredited
retailers during the lean months period of July to October. For the
year NFA noted 32 violations and imposed fines to erring grains
businessmen amounting to P78,000.
iv. NFA BILL
The NFA Bill entitled,” AN ACT REDEFINING THE POWERS AND
FUNCTIONS OF THE NATIONAL FOOD AUTHORITY,
AMENDING PD 4 AND PD 1770, AND APPROPRIATING FUNDS
THEREFOR AND FOR OTHER PURPOSES” otherwise known as
the “NFA Strengthening Act of 2008” was approved by the technical
working group (TWG) on the NFA Proposed Bill chaired by
Congressman Cua on March 12, 2008.
Hereunder are the bills salient features:
Strengthening of NFA organizational & financial functions and
no decoupling of NFA trading and regulatory functions.
NFA shall start as a service corporation on a clean financial
slate.
Maintain 15 days supply for food security purposes and
undertake stabilization functions when commissioned by DA
and to be paid for such services.
To provide for the DSWD pro-poor programs and to be paid for
such services.
To provide for tax expenditure subsidy for rice/corn importation.
Provide for the continuing retirement programs for NFA officials
and employees.
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