The Story of Bagnos Multi Purpose Cooperative

The Story of Bagnos Multi Purpose Cooperative Name of Cooperative : BAGNOS MULTI-PURPOSE COOPERATIVE Address : Binacag, Banna, Ilocos Norte I. Brief History/Background of Co-op

Binacag is located at the southern part of Banna, Ilocos Norte. Bounded from the north by

Brgy. Imelda, and from the east by Brgy. Bomitog and from the west and south by the

Municipality of Nueva Era. It has an area of 59.6 hectares composed of hills and forest areas

and agricultural lands covered by Agrarian Reform Program. Life then in the community was

remarkably hard due to social, economic and political chaos which was a common spectacle

within its outskirts, hence, the Department of Agrarian Reform (DAR) included the area under

BINATOG Agrarian Reform Community in the municipality for easier and better way to promote

and deliver basic services to Agrarian Reform Beneficiaries (ARBs) for development.

Since there was no proponent organization yet to assist the agency in project

undertakings, the natives in the barangay spearheaded the organization of BAGNOS MULTI-

PURPOSE COOPERATIVE. Mr. Esteban Medrano and Ms. Amelia Bautista became the first

Chairperson and Manager respectively. So, on December 21, 2000, with barely 12 initial active

members from 39 incorporating ARBs and with scanty capital of P4,457.00, it was registered

under Reg. No. DAG-4340. Its name was conceived from an acronym, meaning Bassit A

Ganansia Naurnong Omado Sanikua (which means a little profit when manage properly will

increase assets), and this refers to the income generated through the joint effort of the staff,

officers and members. The Officers resolved the creation and operation of a consumer store.

With the continuous patronage and support of the community, its capital increased, and a credit

service was added to solve the financial problems of its members, particularly those belonging to

the marginal strata. This vital transformation created an impact in the locality particularly the way

of living of the people.

Through the years, palay trading, goat and hog raising and rice coffee production were

added to the coop businesses. The latter is in support the municipality’s “One-Town-One

Product” and participated to various local and national trade fairs. Its latest endeavor is

butchering pig and “longanisa” production. Asset has also increased with the acquisition of

hauling truck to complement its palay trading and a motorcycle with side wheel for the

butchering and store operations. A warehouse was also erected and rice coffee production

facility was bought with the assistance of the Dept. of Labor and Employment wherein they

earned awards and recognitions.

The financial status of the cooperative as of June 2015 boosts the coop leaders to work

better for the betterment of the organization. The coop realized a tremendous rise in its

membership to 623 regular members. 567 of these members are full time farmers with an area

of tillage of 826 hectares located within the municipality of Banna, Nueva Era and Pinili, Ilocos

Norte. Capitalization and much income lead to the expansion of services. The officers never lost

focus to what they are bound to pursue. “Service to people and community”, this might be the

rationale behind the rapid growth of the coop it has created an image of worthy and trust and

confidence from the public.

Today, with the coop efforts of its 5 BODs, 14 motivated and efficient Management staff

and the presence of effective and devoted Development and Operations Officer, officers and a

very supportive membership, the coop have metamorphosed from a mere consumer store to

other business agriculture enterprise that is expanding in response to the demands of its

constituents.

II. Success Factors of Bagnos Multi-Purpose Cooperative M embers work hand in hand O fficers are the role model N ever leave work unfinished, do it now E fficient and effective management staff Y ear end evaluation of plans and performance evaluation of employees, officers and services I nnovative S elf-help, self-discipline O n plan, continuous education annually U nselfishness and transparency R esponsible members following the PSPs S upportive government agencies, LGU and Non-Government Organizations

III. Best Practices of Bagnos MPC The cooperative always promotes the welfare of its farmer members and to the community as well. It provides them capital for their production needs. It also assists them in marketing their palay produce with its trading business. To help them lessen their production inputs, the coop encourages its farmer-members to produce their organic fertilizers and follow the modern farming technology. The butchering and longanisa making business of cooperative helps hog raisers-members increase their income. Its rice coffee production also supports “One-Town-One Product” of the Municipality of Banna. The coop encourages and teaches each member to save at least a portion of their income. The coop also supports environmental projects of the community like tree planting, clean and green program, garbage segregation, youth sports activities, school activities, and peace and order campaign.

COOPERATIVE PROFILE

1. Background

a. Name of Cooperative : BAGNOS MULTI-PURPOSE COOPERATIVE

b. Business Address : Brgy. Binacag, Banna, Ilocos Norte

c. Contact/Tel. Nos. : 09198708177 / 09275222985

d. Date Organized : September 3, 2000

e. Date Registered with CDA : Dec. 21, 2000 Amendment: Jan. 18, 2010

Registration Number : DAG-4340 / 9520-01006285

f. Tax Identification Number : 005-512-730

2. Membership

2011 2012 2013 2014

No. of Members 316 447 542 592

Male 123 161 190 199

Female 193 286 352 393

2.1. No. of initial/incorporating members: 39

2.2. Active Members:

2011 2012 2013 2014

No. of Members 316 447 542 592

Male 123 161 190 199

Female 193 286 352 393

2.3. Membership Classification:

Profession/Industry Affiliation Number of Members

Farmers 115

Fishermen

Agrarian Reform Beneficiaries (ARBs) 427

Cultural Minorities

Government Employees 25

Employees in Private Firms 21

Market Vendors 6

2.4. General Assembly Meeting:

2013 2014

Regular Meetings 1 1

Special Meetings 3 3

Note: Quorum is 50% + 1

3. Organization and Management

a.1. Board of Directors

Name Position Educational Attainment No. of Years in the

Coop

Ofelia P. Cabanatan Chairman College Level 14

Maribel C. Rosquita Vice-Chairman College Grad. 14

Imelda P. Corpuz Member High School Grad. 14

Brenda C. Medrano Member High School Grad. 14

Marizel D. Cargado Member High School Grad. 11

Guian C. Gamet Secretary College Grad. 4

a.2. Board of Directors Meetings

2013 2014

Regular Meetings 12 12

Special Meetings 2 3

b. Management Staff

Name Position Educational Attainment

No. of Years in the Coop

Remelyn Y. Bautista Manager College Grad. 13

Emely Q. Juan Treasurer College Grad. 8

Marilou L. Gamet Bookkeeper College Grad. 13

Amelia Y. Bautista Dev’t Officer / Project Manager, Rice Coffee

College Grad. 14

Anily R. Juan Mktg. Staff, Rice Coffee College Grad. 14

Evelyn G. Quiroc Purchaser, Rice Coffee High School Grad. 14

Marites G. Pagdilao Seller College Grad. 8

Erwin J. Morella Driver High School Grad. 7

Robinson Medrano Helper High School Grad. 8

Ringo B. Benito Helper High School Level 6

Rexie J. Benito Account Officer College Level 6

Ahbel D. Faderan Account Officer College Level 6

Bryan Dave R. Juan Butcher High School Grad. 5

Joeffrey R. Juan Butcher (on leave) High School Grad. 5

4. Name Organization/s Providing Assistance:

Organization/Agency Nature of Assistance

Department of Agrarian Reform Financial/Technical/Marketing

Dept. of Agriculture Technical/Marketing

Dept. of Labor & Employment Financial/Technical/Marketing

Dept. of Trade & Industry Technical/Marketing

LGU-Banna Technical/Marketing

Land Bank of the Phils. Financial/Technical

National Food Authority Technical/Marketing

Cooperative Development Authority Technical

Prov. Gov’t of Ilocos Norte Technical

Phil. Crop Insurance Corp. Technical

CARD Inc. Technical

Dept. of Science and Technology Technical

5. Business Operations

a. Return of Investment

2012 2013 2014

Return of Investment 9.29% 8.05% 8.73%

c. Production Profile

Product Type Variety/ Spec

Area Devoted (Has)*

Ave. Yield

(MT/Ha)*

No. of Croppings

/year

Marketable Surplus

Months Available

Mode of Marketing

Palay Hybrid/ Certified

2

d. Marketing

Palay Rice Coffee Meat Processing

Market Outlets NFA, private traders

Robinsons’, Souvenir Shops (Vigan, Paoay,) Restaurants, Groceries

Local market

Mode of Payment Cash cash, consignment cash, consignment

Frequency Harvest season Daily Daily

Sources of Market Info Meetings trade fairs, word of mouth, meetings

word of mouth, meetings

6. Facilities and Equipment Profile

Particulars No. of Units

Capacity Ownership Status (Leased or Owned

Condition

Hauling Truck (elf) 1 7 tons owned operational

Motorcycle 1 300kg owned operational

Roasting machine 1 75kg owned operational

Grinding machine (rice coffee)

1 owned operational

Induction sealer 1 owned operational

Grinding machine (meat) 1 owned operational

7. Financial Status (Data for the past 3-year period and specify cut-off date of the current period of

financial statements)

Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014

Net Income 653,520 692,652 817,888

Total Assets 8,105,378 9,828,591 11,456,136

Total Liabilities 3,190,159 3,873,415 3,904,470

Net Worth 4,915,219 5,955,176 7,551,666

Paid-Up Capital 3,161,869 3,831,518 4,446,200

8. Awards Received

Most Progressive ARB Organization

DAR 2003 Regional Winner

Kanayunang Kabuhayan Award DOLE 2010 Regional Winner

Kanayunang Kabuhayan Award DOLE 2010 National Level 1st Runner Up

Best Beverage Award DAR 2011 National Level

Gawad Saka DA 2011 Regional Winner

Gawad Pitak LBP 2011 Regional Contender

Volume Sales-Platinum Award CJ Phils. 2011 Ilocos Norte

Outstanding Cooperative CDA 2012 Regional

Top Performing Cooperative CDA 2014 Ilocos Norte

Gawad Saka DA 2015 Regional Winner and National Finalist

Best Livelihood Project DOLE 2015 Regional Winner and National Finalist

SERVICES OFFERED

CONSUMER STORE

CREDIT AND SAVINGS

Agricultural Production Loan

Providential Loan

Emergency Loan

Salary Loan

Consumer Store Loan

Rice Loan

PALAY TRADING

AGRI-INPUTS TRADING

HOG & GOAT RAISING

RICE COFFEE PRODUCTION

BUTCHERING & MEAT PROCESSING

MICROFINANCE PROVIDER

MICRO INSURANCE

CONSUmer store

The Consumers’ Store started its operation on September 3, 2000. It

occupied a small room at the Brgy. Binacag Public Market with a meager

amount of ₱4,000 capital. As it was expected, there was a limited lines of

goods offered to customers.

There was a renovation of the Brgy. Public Market on January 2010, and the coop

donated ₱34,920 for the finishing of one stall where the consumer store is now located.

With the wider space, it can now accommodate more stocks and it is more convenient for

buyers.

Consumers’ Store. It was the first service offered to members. This is a project that caters to

the needs of almost all of the members and people in the community. The mark-up of basic

commodities here is ranging from 7-9% only which is of great help to the customers especially

now that we are facing economic breakdown. At least 15% of the annual net income comes

from this project.

CREDIT SERVICE (PROVIDENTIAL LOAN)

Mrs. Mary Ann Vidad filling-up the loan application form when she

applied providential loan for small business.

Mrs. Vidad during the project monitoring in her barbecue stand.

After 2 months, Mrs. Vidad is paying her loan to the

coop. According to her, she had already earned an

ample capital for her barbecue business. She can sell at

least 1 kg as per daily schedule (4 p.m.-6:30 p.m.) with

an average net income of ₱100.

CREDIT SERVICE

Members of the Credit Committee review the Loan

Application Forms before they visit collaterals for credit

investigation.

Mrs. Filomena Benito poses with the

bags of rice during the release of her rice

loan. Before, members used to avail rice

loan from private traders with an

interest of 23% per month. To lessen the

burdens of the members, this service

came into existence 6 years ago. The rice

loan capital came from CDIF with only

42 bags as the starting capital. At first, a

member can only avail 1 bag rice.

Today, a member can avail 5 bags rice.

This year 2014, the coop released 280

bags rice to 105 members earning gross

income of ₱158,570.

Credit and Savings. Loaning service is the solution of usurious lending practices in the

community. It relieves the members’ burdens of high loan interests. This service gives them

the opportunity to start being productive through lending of capital in whatever project they

want to pursue. A member can avail loan according to purpose namely: Agricultural

Production Loan, Providential Loan, Emergency Loan, Rice Loan and Consumer Store Loan. A

single members’ limit to coop’s loan is ₱60,000. In deposit-taking service, it offers even higher

interests than the other commercial and rural banks. At least 14% of the annual net income

comes from this service.

PALAY TRADING

RIGHT MARKET OF MEMBERS’ PALAY PRODUCTION

The palay trading service of the coop improves

profitability for farmer-members by providing fair and

competitive price of palay within the community.

PALAY TRADING

The coop driver and the helper as they haul

palay to the coop warehouse during cropping seasons.

The hauling of milled rice distributed to members especially

during lean months.

Palay Trading. It eases the burdens of farmers in this part of rural area especially in terms of

marketing and price. The coop buys palay product of the farmers at a higher price to avoid

unfair advantage from private traders. On its early years of operation, farmers delivered their

palay to the coop, but now, their products are being hauled by the coop truck service. The

coop warehouse was built through CDIF from palay marketing at NFA. At least 34% of the

annual income comes from palay trading.


The Banna Blend workers are blending the

ingredients of success every time they pack the rice coffee.

And they seal it with expectation of customers’

satisfaction.

Rice Coffee Production. The capital for the purchase of machines, equipment and materials

needed came from the Poverty Free Zone Program of DOLE in the amount of ₱895,500 last

March 2008. The main objective of this project is to increase employment and alleviate

poverty. At first, the project aims to increase prices of the rice production of members.

From the palay production of members, the coop identified a project that

will generate employment and augment income, and this is the production of

Rice Coffee.

Because of processing, this may be sold to higher price and the coop can compete with the

scrupulous traders who used to take advantage of buying rice during peak season. With

various trainings conducted with regards to the project, it only not gives a way to the coop to

be widely known but also the community as a whole. The operation started last June 2008.

The annual sales from January 1, 2012 to December 31, 2012 is ₱1,274,410. This project has

twenty direct employees and 28 indirect employees. With more than 2 years of operation,

national awards have been achieved like “Kanayunan Kabuhayan Awards” and “Best Beverage

Awards”.


PROCESSING EQUIPMENT

Roasting Machine

Stainless Tables

Stainless Stock Pots


NEW PRODUCTION AREA

Banna Blend Rice Coffee is now available at Robinsons Supermarket, Waltermart and

Tiendesitas at Manila. The product is also fast moving in souvenir shops and pasalubong centers

at Ilocos Norte and Ilocos Sur. Baliksayans also brought this product to other countries like United

States, Spain, Singapore, Hongkong, Canada and Italy.

The rice coffee sales for the year 2013 is ₱1,394,695 and year 2014 is ₱1,756,885.

I INPUTS TRADING

At the start of the Agri-Inputs Trading, the coop has no warehouse

so they requested one of the members to lend his barn. This is where the

fertilizers were stocked. Unfortunately, a strong typhoon destroyed the

barn.

With the absence of warehouse, different

products were cramped into a small, one unit

stall at the Binacag Brgy. Public Market. Such

situation challenged the coop to resolve it at once.

Agri-Inputs Trading. It provides easy-to-access agricultural inputs such as feeds and

fertilizers within the community. Farmers are grateful that the coop has this service to liberate

them from exorbitant prices of fertilizers. Not only this, the cooperative is now an innovator to

the use of organic fertilizer which is of great help to peoples’ health and in the environment. At

least 11% of the annual net income comes from this service.

supPORT

SERVICES

WAREHOUSE

On July 8, 2005, a 70-square meter warehouse was constructed on a

1,000 sq. meter lot donated by Mr. Lionel A. Verano Jr. The coop members stand

firm together to build a dream and strive for its attainment. A farmer, a

housekeeper, even an employee, became a carpenter of the warehouse. 30% of

the building materials came from the CDIF (NFA), and 70% came from the coop

fund. Labor was the equity of members.

Hon. Carlito “Carly” A. Abadilla II cuts the ribbon of new opportunity for the

coop on December 21, 2005. A dream for a coop warehouse came true. This is an

inspiration to goad on for more.

SUPPORT SERVICES

HAULING TRUCK

This support service of coop projects

was acquired on March 3, 2010 worth

₱600,000. The whole amount came from the

internal fund of the cooperative.

Hauling Truck. The acquisition of hauling truck has been a long term plan (5 years) because

it was always a backlog until the right time. The fund used was from the coop capital and

optional fund (reserves). The hauling truck is a very important support service to all the

services of the coop like in the procurement of goods sold at the consumer store, agri-inputs

trading, procurement of agricultural products, and delivery of rice coffee. The presence of the

truck lessens transportation cost of the organization, increase volume purchase and sales on

agricultural products (rice), and easy access of transport facility whenever needed.

SPECIAL PROJECT

GOAT RAISING

Lilia Dumaoal is one of the beneficiaries of Goat Raising Project. The

objective of Goat Raising is to find ways and means to increase household

income. The capital comes from the Unilateral Trust Fund of FAO TSSARD of the

Dept. of Agrarian Reform in the amount of ₱56,500 used for the purchase of 16

heads doe and 2 bucks plus biologics. A member can avail 1 head and payment

will be 2 kids. There are already 120 beneficiaries realizing additional income of

₱6,000 annually.

Mrs. Elena Parco availed 6 heads of the hog fattening loan on December

2013. Now, her loan is fully paid. She earned a total income of ₱14,675.

Special Project. This program is composed of Goat Raising and Hog Raising. It promotes

livelihood in the community to augment meager income. This project was started with only 18

heads of goats, eventually it expanded into Hog Raising. With the testimonials of the

numerous beneficiaries, this project will at least relieve them from the serious effects of

economic crisis. At least 4% from the annual net income comes from special project.

HOG RAISING, BUTCHERING & MEAT PROCESSING

The starting capital of Hog raising came from the income earned in goat raising project. The

success was due to the monitoring and evaluation of the concerned coop officers and the

eagerness of the beneficiaries to earn additional income.

The 2 coop butchers as they are about to transport the

hog into the slaughter house.

Butchering cum Meat Processing. With the rise of marketing problem of hog raisers

especially the beneficiaries of hog raising loan, the cooperative finds a way to resolve this

concern. On the previous years, there are numerous complains of hog raisers about low price

or frauds of weight of their livestock, and the consumers about the quality of meat bought at

the wet market. Being sensitive to the needs and demands of the community, the coop

ventures to butchering service then later to meat processing. On its first six months of

operation, at least 10% of the annual net income comes from butchering and meat processing

service.

MICROFINANCE PROVIDER

The Account Officers attend the

Mentoring and Technical Guidance

(MATG) facilitated by CARD personnel.

Center meeting is conducted at

Binacag D, one of the 18 centers of

Bagnos MPC microfinance.

Borrowers fall in line for the release of

microfinance loan products, the micro-

agri and micro-enterprise.

MICROFINANCE SERVICE. This is the newest program of the cooperative started on June

2012. This service provides a broad range of services such as savings, credit insurance and

education to a large member of socio-economically challenged households for viability and

sustainability. Now, it has 18 centers in 9 barangays covering the towns of Banna, Nueva Era

and Pinili.

IMMERSION

At first, the coop officers and staff have immersion at

Claveria Grassroots Coop at Claveria, Cagayan in order

to learn and adopt the best practices of the coop.

Visitors from ARNAP MPC,

Cabugao, Ilocos Sur expressed their

gratitude to Bagnos MPC during their

visit.

LGU and NGOs of Piddig looking in detail

at the product of Banna Blend Rice

Coffee/Bagnos MPC.

LEARNING EXPEDITION AT BAGNOS MPC

Visitors from Abra

Officers and staff of Claveria Farmers’ MPC

visits Bagnos MPC.

Officers and staff of three cooperatives

from Nueva Ecija.

A coop representative from

Cervantes, Ilocos Sur presents a

plaque of appreciation to Bagnos

MPC during their field trip at the

coop.

Visitors from

MIMAROPA listen attentively to

the Development Officer during

their educational tour at

Bagnos MPC.


Students from MMSU conducted research at Bagnos MPC.

105 students from MMSU College of Business Economics and Accountancy

listened to the briefing and orientation of the Development Officer of Bagnos MPC

during their educational tour at the coop.

It was a dream comes true that today, the BAGNOS MPC is the one being visited

by the coops to replicate the best practices and to learn the secret of their success

especially the zero delinquency record of the coop. The staff and the officers are not

selfish to share these secrets so that someday, they will follow the footstep of Bagnos.

Students from different schools and colleges, universities have also conducted their

research for their requirement in the school like Catagtaguen National High School,

Divine Word College of Laoag, Northwestern University, MMSU and Data Center

Philippines.

LEARNING EXPEDITION OF BAGNOS MPC

The coop officers and

staff are so much eager to

learn the different activities

of Microfinance operation.

Bagnos MPC needs to discover how to effectively operate Microfinance Service. So the

coop officers and staff, through the assistance of DAR, attended learning expedition at

Naguilian Christian Multi-Purpose Cooperative in Lallo, Cagayan on May 2012.


Fortunately, Bagnos MPC is now accommodating other cooperatives who want to learn

effective and successful operation of Microfinance.

Bagnos MPC

welcomed the officers

and staff of two

cooperatives from

Zambales and DAR

personnel from

Zambales and Bataan

recently. Bagnos is

their chosen

destination for 2-days

study mission about

Microfinance.

Bagnos MPC

officers and staff

warmly shared their

experiences and

learning about

Microfinance operation.

TRAININGS AND SEMINARS

PRE-MEMBERSHIP EDUCATION SEMINAR

Pre-Membership Education Seminar (PMES). This seminar is required to be attended by an

incoming member before his application is approved. It will produce quality members because

at first, the incoming members will have an idea about what a cooperative is, what are the

benefits, rights, duties, and functions of a member, the services being offered and its policies,

systems and procedures. By this seminar, the incoming member can decide whether to

continue or not his membership and the membership committee can also use their

participation during the conduct of the training as one basis for evaluation and approval. This

is conducted by the education committee.

OWNERSHIP SEMINAR

Ownership Seminar. This is conducted annually in Bagnos MPC to update its members the

reason why they joined the cooperative. This is the reason why majority of the members have

active support and participation to all coop activities and services. During the conduct of the

seminar, coop plans will be presented for approval, ratification of PSPs and other important

matters will be discussed in the open forum. The facilitator will be the Education Committee,

co-facilitators are the staff and the officers.

THE GENERAL ASSEMBLY

During Annual General Assembly Meeting, some of the activities

were Presentation of Annual Reports (BODs, different committees

and management staff), Election of Officers, Raffle Draw,

Distribution of Interest on Capital and Patronage Refund.

As of June 30, 2015, the Bagnos MPC membership is composed of 623 regular

members. Members came from different towns in Ilocos Norte but the majority came

from Banna, Nueva Era and Pinili. It has 98% active members. In day-to-day activities

of the coop, members participate and show involvement.

ANNUAL GENERAL ASSEMBLY

The members fall in line for their registration on time.

Members exercise their right to vote through secret ballot...

... while the others are patiently waiting

for their turn.

LEADERSHIP TRAINING

Action planning was integrated in Leadership Training. It has

always been an advantage when coop leaders are personally

involved in a long term planning for them to see and analyze the

previous accomplishments and it serves as a basis for the plans

and programs of the cooperative.

Hands-on Training. This is always conducted to the officers, staff and second

line leaders to review their general and specific task in their field of endeavour.

This will also enhance their capabilities to execute their functions in the time and

place to gain the trust and confidence of the members they are serving.

Knowledge is power. The development and operations officer will facilitate with

manager as co-facilitator.