Transcript Coffee/Macadamia PPT

CLIMATE CHANGE RESILIENCE WITH
MACADAMIA-ARABICA COFFEE
AGRO FOREST PROJECT IN THE PHILIPPINES,
CBFM, WATERSHED AND CADC/CADT AREAS
Presented to
Forest Management Bureau
DENR, Quezon City,
February 8, 2011
TOPICS
Current Forest Situation
 Objectives
 Project Area Coverage
 Project Description
 Organization and Management
 Financial Plan
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CURRENT SITUATION
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About 7,665,000 ha or 25.7% of Philippines is forested,
according to FAO.
Of this 4.6% ( 352,000 ha ) is classified as primary forest, the
most bio-diverse and carbon-dense form of forest.
Philippines had 352,000 ha of planted forest.
Change in Forest Cover: Between 1990 and 2010, Philippines
lost an average of 54,750 ha or 0.83% per year.
Between 2000 and 2005, the rate of forest change decreased
by 20.2% to 1.98% per annum. Philippines.
In total, between 1990 and 2005, Philippines lost 32.3% of its
forest cover, or around 3,412,000 hectares.
And between 1990 and 2010, gained 16.7% of its forest
cover, or around 1,095,000 ha.
CURRENT SITUATION, CONT.
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Philippines's forests contain 663 million metric tons of
carbon in living forest biomass.
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Biodiversity and Protected Areas: Philippines has some
1196 known species of amphibians, birds, mammals and
reptiles according to figures from the World Conservation
Monitoring Centre.
Of these, 45.8% are endemic, meaning they exist in no
other country, and 14.7% are threatened. Philippines is
home to at least 8,931 species of vascular plants, of which
39.2% are endemic. 5.1% of Philippines is protected under
IUCN categories I-V.
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CURRENT SITUATION, CONT.
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These are:
1) expanding marginal, degraded, unproductive upland
areas led to climate change
2) unsustainable management of remaining forests;
3) under-utilization of non-timber resources;
4) weak institutional capability for forest management; and
the need for policy reforms.
5) poverty incidence of 44% among upland farmers, IPs
CURRENT SITUATION; CONT.
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Approximately 75.83% of Arabica & Robusta Coffee and
100% of macadamia is being imported
Economic Dependency of Energy Source
Growing effect of Greenhouse Gases on the environment
Fuel prices steadily increasing causing public concerncost of inputs, transport, labor
The need to pursue a Nation Wide Road Map to assure
the continuous growth of the alternative reforestation
high value agro-forest tree crops industry.
CURRENT SITUATION; CONT.
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Determine the economic feasibility of the macadamia
and arabica coffee as reforestation tree crops
Growing demand for planting materials
Awareness and interest in macadamia and arabica
coffee growing
High demand, limited supply of macadamia nuts world
wide – 2%, coffee steadily increasing demand
CURRENT SITUATION; CONT.
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Need to create the agro-forest infrastructure to
create a sustainable source of macadamia and
coffee, alleviate poverty and resilience to climate
change
1.
2.
Training on Planting , Production and Processing Technology
Nursery (Propagation)
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3.
4.
Seeds Selection
Clonal Rooted Cuttings
Tissue Culture
Tree Crops Plantations in CBFM, CADT/CADC, Watershed
Areas
Buying and Processing Centers
CURRENT SITUATION; CONT.
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Macnut Philippines recently spearheaded the
propagation and production of macadamia and
arabica coffee
New investment ventures looking at creating
operations to produce macadamia and arabica
coffee in the Philippines.
Macnut Philippines providing propagation material to
plant initially 20,000 hectares or the equivalent
production of 3,000 tons of macadamia nuts and
40,000 tons of arabica coffee
PROJECT OBJECTIVES
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To plant macadamia and arabica coffee as
reforestation and income generating tree crops
To alleviate poverty, empower and improve the lives
of the CBFM, CADT/ CADC holder beneficiaries
To improve upland productivity through introduction
of sustainable, climate change resilient farming
and environmental protection technologies –
natural farming
Table 1. Land utilization in the Philippines
Land Use
Agriculture
Forestry
Settlement
Mining and quarrying
Inland Fisheries
Open Land
Total
Area (ha)
Percentage
9 728 800
32.95
19 062 600
64.56
131 400
0.44
8 700
0.029
595 700
2.02
1 100
0.004
29 528 300
100.00
Administrative boundaries
Table 2. Area, production and value of production of five important
crops, in 2008
Crop
Area
(‘000 ha)
Production
(‘000 tons)
Value of
production
(M pesos)
Rice
4 006.4
13 499.9
117 989.0
Maize
2 409.8
4 615.6
32 540.1
Coconut
3 214.2
14 121.9
38 694.0
Sugarcane
389.4
23 981.3
21 823.0
Banana
409.8
5 369.0
30 066.2
PROJECT AREA COVERAGE
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Region I
CAR
Region III
Region IV
Region V
Region VI
Region VIII
Region IX
Region X
Region XI
Region XII
Region XIII
Total (Has)
–
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1,500
1,000
1,000
1,000
1,000
1,000
1,000
2,500
4,000
2,000
1,000
3,000
20,000
REFORESTATION TREE
CROPS
MACADAMIA
ARABICA COFFEE
REFORESTATION TREE CROPS
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Macadamia (integrifolia sp. & tetraphylla sp.)
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Arabica coffee (Coffea arabica sp.)
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Legume shrubs/ trees as hedge row
(Flamengia, Ronsonii, Leucaena, etc. for Sloping Agroforest Land Technology)
TREE CROPS
 Macadamia
 Grows 60 feet tall, life span of 60-80 years for grafted & 150
years for non-grafted trees
 Grafted trees bears fruit within 3-5 years while non- grafted
trees bear fruit within 7-10 years, yield:
 Trees are not invasive to the environment, used primarily for
reforestation in Hawaii,
 adoptable in Philippines, in higher elevations with cool climate
 Population per hectare 80 trees on mixed cropping system
 Population: per hectare – 300 trees with coffee intercrops
TREE CROPS
Macadamia
 World’s most nutritious nut and no
cholesterol, 87% mono-unsaturated fats and
3% poly-unsaturated fats
 Macadamia oil is superior with higher smoke
point of 210.75 degrees Centigrade
TREE CROPS
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Macadamia
In demand on the world market
Have longer shelf life compare to other crops
Perceived to be secured, assured and profitable
future
Substantial source of income
Generate and create jobs
Potential source of energy for its nut shells as fuel
for steam to generate clean, renewable electricity
TREE CROPS
 Arabica
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Coffee
Grows 10 feet tall, life span of more than100 years
Bears fruit within 18 months, ave. 1.5-2.0 t/ha
Can be intercropped with taller tree crops
Adaptable in Philippine highlands -700 meters and
above
Considered to be the best quality coffee variety
TREE CROPS
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Arabica Coffee
In demand locally and in the world market
Have at least 1 year shelf life
Perceived to be secured, assured and profitable
future
Substantial source of income
Generate and create jobs
PROJECT DESCRIPTION
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1.
COMPONENTS
Community Organizing & Development
- Organize / orient stake holders- national,
regional, Provincial and municipal agencies
involved
- Organize / Orient upland farmers, people’s
organizations about the Project
- Conduct continuing education program
- Monitor and evaluate activities
PROJECT DESCRIPTION
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AGROFOREST AND ENTERPRISE DEVELOPMENT
1. Planting of macadamia and arabica coffee I CBFM,
CADT/ CADC and watershed areas
1.1 Diversified Farming with MacadamiaArabica coffee – 70% tree crops, 30%
food crops mix (rice, vegetables,
citronella, lemon grass)
1.2 Macadamia will bear fruit on the 4th
year- 80 seedlings/ ha.
1.3 Arabica will bear fruit on the 2nd year1660 trees/ha
PROJECT DESCRIPTION
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Diversified Farm Crop Mix
1.4 The food crops planted between
macadamia and coffee, two cycles for
the next two years
1.5 Macadamia Yield: 10 kg/tree, 80
kg/ha/yr at Ps 600/kg
1.6 Arabica Coffee: 2 tons / ha/ year at Ps
80/ kg
PROJECT DESCRIPTION
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Macadamia- Arabica Coffee Strip Cropping System
1.1 A combination of rows of macadamia
and coffee with a population of 300
trees and 2,500 trees per hectare
1.2 Planted in between two hedge rows
using SALT system
1.3 The macadamia is spaced 6m x 6m
1.4 Arabica coffee is spaced 2m x 2m
PROJECT DESCRIPTION
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Hedge rows shall be established using
leguminous crops (Flamengia, Ronsonii, Leucaena,
Gliciridia, Calliandra,Caloahyrus, Indigofera etc.)
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The identified beneficiaries shall implement the
setting up of 1 hectare strip cropping system per
farmer using the recommended technologies.
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The Project shall be implemented in cooperation
with DENR through its field offices
NURSERY/PLANTATION
Nucleus
Phase 1
Phase 2
PROJECT IMPLEMENTATION
12 to 24 months
Development
Period
6 to 12 months
Development
Period
0 to 6 months
Development
Period
20,000 Hectares
5,000 Hectares
10 Ha
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NUCLEUS
LARGE SCALE PLANTATION DEVELOPMENT
10 x
5x
1 - hectare nucleus farm
1,000 - hectare plantation
monocrop
3x
10 ha
intercrop
5,000 - hectare plantation
monocrop
5,000 ha
intercrop
20,000
ha
PRODUCTION COST ITEMS
Nursery
Plantation
Processing
Refining
• seeds
• CBFM seedlings
• PO expelling
• Macnut
• irrigation
• irrigation
• building
• building
• labor & overhead • labor & overhead
• fertilizer
• fertilizer
• land lease
• land preparation
• labor & overhead • overhead
• plant
• plant
maintenance
maintenance
• transport
• transport
• transport
• weeding/pruning
• storage
•storage
• training
• training
• harvesting
SOCIAL ECONOMIC EFFECT
SOCIAL ECONOMIC EFFECT
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Lower price inputs
New crop source of income from Marginal and Idle land
Additional Source of income to farmers of traditional crop
Provide a source of income to indigenous people
Provide jobs to womens groups (Nursery, Soap
Production)
Create new business opportunities (bi-products)
TECHNOLOGY
Meeting Growing Global Demand for Macadamia and
Arabica coffee”
Macnut objective is to become a global, sustainable producer of
competitively priced
2. We aim to meet the world's growing demand for more green organic food
3. To deliver a consistent high volume output of sustainable high quality
macadamia and arabica coffee products
4.We are building a global portfolio of planting and refining operations and
we believe production in volume for the long term is the most profitable
way to maintain our lead. d
5. Macnut is commercially driven with a business model that adresses the
pressing national and global issues of food security, climate change,
poverty alleviation and sustainable development.”
6.With an Immediate Goal of planting 3,000 hectares for 2011 for the
Philippines
1.
Financial Plan
1st year per hectare
Product
Production
Gross income
cost
Net Income
Total
Arabica coffee ( 2,500 pcs
@ 25/pc)
0
45,000
0
Macademia (300 pcs @
150/pc)
0
50,000
0
0
95,000
0
Total
Diversified Farm Crop mix .3has cost
and return analysis for one year
(first year)
Products
Crops & Mixed
Vegetables (Rice,
Pole Sitao, Egg
Plant, Okra,
Citronella/Lemon
Grass, Tomato, Hot
chili pepper)
Arabica (1 ha.)
Macadamia (1 ha)
Total
Gross income
Production
cost
Net
Income
Total
40,500
16,767
23,733
0
0
40,500
39,960
80,000
153,494
0
0
23,733
Diversified Farm Crop mix .3has cost
and return analysis for one year
- 2nd & 3rd year
Products
Crops (Citronella/lemon
Grass,, Hot chili pepper,
& mixed Vegetables)
Arabica (1 ha)
Macadamia (1 ha)
Total
2nd -3rd year (1/3 has)
Gross
Production
income
cost
Net Income
Total
205,000
61,420
143,580
100,000
25,000
75,000
0
305,000
30,000
116,420
0
218,580
Diversified Farm Crop mix .3has cost
and return analysis for one year
- 7th year
7th year (1/3 has)
Gross income
Production
cost
Net Income
Total
Crops & Vegetable
(Citronella/Lemon
Grass, Hot chili,
Peanut)
50,500
37,020
63,480
Arabica coffee (1 ha)
160,000
45,000
115,000
Macadamia (1 ha)
Total
108,800
369,300
60,000
142,020
48,800
227,280
Products
Diversified Farm Crop mix .3has total
cost and return analysis from 1st year
up to 7th year
Total From First up to 7th Year
Crops & Vegetable
(Citronella/Lemon
Grass, Hot chili,
Peanut), Arabica
coffee, Macadamia )
Gross income
Production
cost
Net Income
Total
First year
2nd year
40,500
153,494
23,733
305,000
116,420
218,580
7th year
369,300
142,020
227,280
714,800
411,934
469,593
Total
Financial Plan
2nd -6th year
Product
Production Net Income
Gross income
cost
Total
Arabica coffee ( 2,500
pcs @ 25/pc)
0
30,000
0
Macademia (300 pcs @
150/pc)
0
30,000
0
0
60,000
0
Total
Financial Plan
7th year
Products
Gross
income
Production Net Income
cost
Total
Arabica coffee ( 2,500
160,000
pcs @ 25/pc)
45,000
115,000
Macademia (300 pcs
1,800,000
@ 150/pc)
50,000
1,750,000
95,000
1,865,000
Total
1,960,000
• Macadamia 30 kilos/tree X 300 trees/ha X 200/kilo
•Arabica 80/kilo X 2,000 kilos (2 tones)
Thank You