1

Preface As the world today faces unstable financial systems, increased insecurity of food

supply, growing inequality worldwide, rapid climate change and increased environmental degradation, it is increasingly compelling to consider the model of economic enterprise that cooperatives offer. The cooperative sector, especially in developing countries, also presents itself as an important element that can contribute to market failures. The challenges are tremendous and often seen as insurmountable. The successes of cooperatives are often anecdotal, undocumented and little understood as part of economic development strategy of a country.

Cooperatives, as economic enterprises and as self-help organizations, play a meaningful role in uplifting the socio-economic conditions of their members and their local communities. Over the years, cooperative enterprises have successfully operated locally owned people-centred businesses while also serving as catalysts for social organization and cohesion. With their concern for their members and communities, they represent a model of economic enterprise that places high regard for democratic and human values and respect for the environment.

The compilation of cooperative stories in Region1 presents the status of featured cooperatives, services, practices and experiences. We also included testimonies from members who benefit greatly from ownership and those who benefit from democratic economic participation. Reading these stories will attest that truly cooperatives are people centered organization.

2

Acknowledgement

Heartfelt thanks to the features cooperatives for unselfishly sharing their stories as well as their members especially the following:

GLEDCO. The story of a champion of NGO – LGU partnership - GLEDCO and City of Laoag. A unique story of joint partnership in the implementation of Integrated Solid Waste management (ISWM) benefitting 458 farmer-recipients of produced; 454 stall operators in the public market; 46 waste pickers operating in the disposal facility; and residents of 80 barangays.

SACDECO. This is a story of a strong financial intermediary and catalyst of growth in the countryside. Its present Chairperson, Mr. Alexander B. Raquepo was awarded Cooperative Ambassador for Region I (2015) during the 100 Celebration of Philippine Centennial Celebration for his outstanding contributions and being an active advocator of cooperative philosophy and principles. SACDECO is the 2nd Billionaire primary cooperative in the region. Moreover, SACDECO was a consistent Gawad Pitak Awardee of the land bank of the Philippines.

The story of Nueva Segovia Consortium of Cooperatives (NSCC) showcased the federation as a Leading, Trusted National Consortium of Cooperatives that Helps Empower Communities through its diversified services. The 1st Billionaire Federation in the region. The Federation was a consistent Gawad Parangal Awardee as Outstanding Federation (2013-2015); as well as its Chief Executive Officer, Ms. Divina C. Quemi as Outstanding Leader. The NSCC was the principal convenor for the 1st Cooperative Tourism Cluster Congress in 2015. NSCC is also an accredited training provider of the CDA.

San Joaquin Multipurpose Cooperative story shows that cooperative is a model to reduce poverty. The cooperative is the haven of the people particularly those who could hardly make both ends meet, The Board of Directors, as sensitive as ever to the needs of the members, resolved for the creation of a Credit Department to solve the financial constraints of its constituents practically those belonging to the marginal strata. San Joaquin MPC is also a consistent Gawad Pitak Awardee of the Land bank of the Philippines.

The Lingayen Catholic Credit Cooperative (LCCrC) is a “self-help” cooperative established behind the principles of cooperation for the parishioners who were earning a living from a meager capital of a “buy and sell” business in the market. These market vendors were then the target of the loan program of LCCrC. The growth of the cooperative moved with the increase on membership from small earner groups classified as “Self-Employed” member as well as those employees from the government and private entities, until it has reached its life span of 50 years serving the needs of members with its multi-million worth of assets.

3

La Union MPC started as a women’s organization founded by then Vice-Governor Amparo Aspiras, meant to empower women, particularly the politicians’ spouses. But the circle expanded to accommodate interested women who wanted to do something worthwhile with their time. Hence, La Union Ladies Association (LULA) was born. A quarter of the century later, after so much evolution, La Union Multi-Purpose Cooperative thrives as a fast-growing institution in La Union and in Region 1. LUMPC is now a long way from what it used to be. From an institution that catered only to civic-minded women to a cooperative meant to serve people from all walks of life. A consistent Gawad Parangal Awardee (FY 2013-2015) from Medium size to large Size cooperatives.

Sacred Heart Savings Cooperative was the 1st Primary Cooperative Billionaire in Region 1. The cooperative has been reaching out to empower farmers since its inception. Majority, if not all, of its founding cooperators were farmers. Aside from offering microfinance loans to majority of its members, several programs of the coop are aligned on helping out and easing out the difficult plight of its farmer-members. SHSC was awarded as Most Outstanding Community Enterprise Awardee (2015 Villar SIPAG Awards). Moreover, the cooperative is known for their Coffee Agro Enterprise Development and lately their Hog Breeding Mega Farm: On Agribusiness and Ecological Responsibility. A consistent Gawad Parangal Awardee for the Large Category FY 2013-2015.

Bagnos Multipurpose Cooperative. Bagnos Multipurpose Cooperative is located at Brgy. Binacag, Banna, Ilocos Norte, registered on December 21, 2000 with tax Identification Number : 005-512-730. The cooperative is engaged in The cooperative offers the following services, 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 and goat raising, coffee production, butchering and meat processing, micro finance provider and micro insurance. It was a dream comes true that today, the cooperative 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. In 2015, the cooperative was the Regional Winner and National Finalist Best Livelihood Project DOLE and Regional Winner and National Finalist.

Bayanihan Hundred Islands Agrarian Reform Cooperative located at Palamis Alaminos City, Pangasinan and was registered October 29, 2002. At present, Bayanihan Hundred Islands Agrarian Reform Cooperative has grown total membership of more than 1,400 and capitalization of over two million five hundred thousand pesos. The cooperative was awarded as Natatanging Kooperatiba in the Cooperative Month celebration held last October 25, 2014 and Most Outstanding Cooperative for exemplary performance in achieving development of the members and as active partners of the Local Government Unit of the City of the Alaminos last March 22, 2015.

4

Tubao Credit Cooperative located at Poblacion, Tubao, La Union, shares testimonies of their members of their dreams realized through the assistance of the cooperative.

Finally, I want to thank our MIS Unit for providing the financial data, Project Development Assistance Unit, Cooperative Research Information and Training Unit for collating some of the stories, Document Controller and Administrative Assistant for helping me with the final and earlier drafts.

Jo B. Bitonio

5

TABLE OF CONTENTS Page

PREFACE ……………………………………………………………………………. 2

ACKNOWLEDGEMENT ……………………………………………………………. 3

TABLE OF CONTENTS ……………………………………………………………. 4

COOPERATIVE STORIES

1 2015 Champion: NGO-LGU Partnership GLEDCO and City of Laoag City ………………………………………… 7

2 GLEDCO Sunshine Recycling Facility …………………………………………….. 15

3 SACDECO Through the Years ……………………………………………………… 18

4 NSCC: A Leading & Trusted National Consortium of Cooperatives …… 22

5 The Metamorphosis of San Joaquin Multipurpose Cooperative ……….. 31

6 A Unique Story of LCCrC …………………………………………………………… 42

7 La Union Multipurpose Cooperative Success Story ………………………… 45

8 Sacred Heart Savings Cooperative and Its Projects ………………………. 48

9 SHSC Aflatoun Youth Savings Program ……………………………………….. 58

10 SHSH: Most Outstanding Cooperative Entrepreneur Awardee ………… 59

11 SHSC Hog Breeding Mega Farm on Agri-Business and Ecological Responsibility …………………………………………………………………………… 60

6

12 SHSC Farmers to Entrepreneurs ………………………………………………… 62

13 The Story of Bagnos Multipurpose Cooperative …………..……………… 64

14 ARC Story: Bayanihan Hundred Island ARC …………………………….…. 72

15 Member Testimonies ………………………………………………………………… 78

2015 Champion: NGO-LGU Partnership GLEDCO and City of Laoag City

Sustaining the Implementation of the Integrated Solid Waste Management Program under Public-Private Partnership

Program

It is the vision of GLEDCO to develop, implement and maintenance of innovative and sustainable integrated waste management program which includes reduction, recycling and collection services within an engaged community. They believed that vision without action is nothing more than just a dream. Action without vision merely passes the time. But vision with action can and will change the world. In 2014, a MOA signing was conducted between the City Government and GLEDCO

The ISWM program objectives are the following:

• Strengthen the implementation of the Integrated Solid Waste • Management Program of the City• Achieve 85% waste reduction• Increase the level of awareness of the stakeholders• Increase the level of participation of the private sector• Upgrade the classification of the disposal facility• Comply with the provisions and mandates of the RA 9003

Laoag City has a population of 104,904 (NSO 2010) with income classification of a third class City. The direct beneficiaries of the implementation of integrated Solid Waste Management Program were: 458 farmer-recipients of produced; 454 stall operators in the public market; 46 waste pickers operating in the disposal facility; and residents of 80 barangays.

7

The process of Integrated Solid Waste management

The total project cost was P 62,453,119.00 broken down as from the City of Laoag P 49,400,000.00: GLEDCO P 10,053,119.00; from the Performance Challenge Fund CY 2011-2015)

GLEDCO donated worth Php2Million in 2011 and 2012 for the purchase of garbage collection vehicles. The project produced 145 tons of organic fertilizer.

8

The program implementation results were:

9

1. Increased the level of awareness of the different stakeholders2. Conducted WACS3. Waste Generation by Source and Composition in the Public Market

Classification Biodegradable Recyclable Residuals Total

Volume 2071.5 508.5 307.5 2887.5

4. WACS Summary:

The current waste generation per capita per day is 0.42 kg. The total volume of waste generated in the public market is 2,887.5 kilos

per day. The total volume of waste generated in the 80 barangays is 48,275.5

kilos or 48 tons/day.

5. Waste Classification: Biodegradable 66%; Recyclable 17%; Residual 14%; and Special 14%.

6. Expansion CHB Production 2014 – 450/day to 2015 – 1,200/day

7. Marketing of Recyclable Materials

8. Consolidated and strengthened Sunrise SEA-K Association with the CSWDO

9. Employment creation – GSRF workers 2014 (8) and 2015 (22).

10. Supplied materials to Camella Laoag, Gawad Kalinga Housing Project, Kyeryong Construction, Terp Asia Construction, Save more, Hanalei Heights, and Brighton Parkplace, Robinsons Homes, Save More, City Mezzanine, City Hall Office, ABC Office, LCGH Basement, and major streets sidewalk. For CY 2015 the gross sale was P 2,805,984.75 broken down as organic fertilizer P 84,160.00, CHB 2,602,632.75and pavers P119,192.00

11. Replicability/Initiative/Distinctions

Lakbay Aral Groups: 2013February 24 Alabel, SarangganiMarch 14 Naga City (Brgy. Kagawads)May 18 Legazpi CityMay 18 Puerto Princesa City, PalawanMay 20 Quezon City

10

May Naga City (Brgy. Treasurers)May 25 Iloilo CityMay Naga City (Brgy. Secretaries)September Tiwi, Albay (Executive &

Legislative Dept.)September Tuburan, CebuSeptember Ragay, Camarines Sur (Mayor,

Vice Mayor, Brgy. Chairmen)September Banaue Hotel & Youth HostelSeptember Albay (Vice Mayor’s League)September KIDS KOLLEGE, Inc.October Carcar, Cebu ( City Mayor and

SP members)November La Trinidad, Benguet (Senior

Citizens)December Naguilian, La Union (Liga ng mga

Brgy. and KABAKA)December Virgen Milagrosa University

(HRM Dept.) of San Carlos City,Pangasinan

Lakbay Aral Groups: 2014

February 21 Brgy. Councilors of Calinog, IloiloFebruary 24 Local Govt. of Lucena CityMarch 5 Local Govt. of Sariaya, QuezonMarch 14 Local Govt. of Masbate CityApril 29 Liga ng mga Barangay, Coron, PalawanMay 15 Social Welfare Volunteers of CSWDO –

LGU NagaJuly 21 City Govt. of CebuAugust 1 Marikina Shoe Industry Devt. Office and

Marikina Shoe ManufacturersAugust 7 Barangay Poblacion, Valencia CityAugust 19 Island Garden City of Samal, Davao del

NorteSeptember 11 Local Govt. Unit of Panglao, BoholSeptember 12 Local Govt. Unit of Tiwi, AlbaySeptember 27 Brgy. Pias, City of San Fernando, La

UnionOctober 14 Liga ng mga Barangay, Daraga, AlbayOctober 29 Brgy. UP Campus, District IV, Quezon

CityNovember 6 Barangay Baikingan, Cagayan de Oro

11

CityNovember 14 Local Govt. Unit of Kasibu, Nueva

VizcayaNovember 16 Cauayan City, Isabela

Lakbay Aral Groups: 2015

First Gas Power, Corporation – Batangas ProvinceLiga ng mga Barangay – Aurora, Zamboanga del SurMunicipal Officials - Carles, Iloilo City Municipality of Alimodian – IloiloLiga ng mga Barangay – Pasay City Municipal Officials Jimenes,Misamis Occidental Barangay Cararayan – Naga CityGender and Development Federation - Cebu City Liga ng mga Barangay – Iloilo Chapter

12. Recipients of various environmental Awards: Gawad Parangal Awardee Special Citation for Exemplary Environmental Protection and Conservation Program

12

13

Awarded by NEDA RDC -Region 1

The IMPACTS of ISWM Program under PPP Scheme:

• Reduces the cost of waste management. The City Government saved on costs of hiring additional manpower to segregate biodegradable materials at the central MRF.

• Improve the service and try to get more benefits (e.g., biodegradable materials converted to organic fertilizer; plastics are embedded in the concrete products; recyclable materials are recovered)

• Increase public awareness and participation (IEC conducted during

)

• Helps protect the environment and ensure human health. GLEDCOs recycling and reuse activity help to achieve public sector goals as well, and that is, the protection of public health and the environment.

Recognizing waste pickers as partners in the overall implementation of Integrated Solid Waste Management program and not as competitors, has helped the growth of this special sector.

14

Apart from their regular activities as waste pickers, some of them are currently working in the facility as manufacturers of concrete products.

Marketing of composting products generate income that can cover, even if only partly, costs of operating the facility. This in turn, cascades to the sustainability of the facility.

Keys to Laoag's Effective and Efficient ISWM Program Implementation

Strong political will of the city government. Active private sector participation in the ISWM Program

From the CDA-DEO Data Base FY 2014

Government of Laoag Development Cooperative (GLEDCO) is located at the City Hall, Laoag City, The cooperative was registered Multipurpose Cooperative on January 22, 2001. Their current economic activities are: lending, trading, service. It is governed by seven Board of Directors, 138 staff, with 2,279 regular and associate members, and categorized as large size cooperative.. For the financial profile, they have a total assets of P 525,181,754.00, Net worth P 143,782,482, Volume of Business P 326,166,225.28, Gross Revenue of P 68,199,305 and Net Surplus of P9,355,795.00

GLEDCO Sunshine Recycling FacilityBy: GOVERNMENT OF LAOAG EMPLOYEES DEVELOPMENT COOPERATIVE

The Government of Laoag Employees DevelopmentCooperative (GLEDCO) persists in strengthening its corporate responsibility. It has played and imperative role in the solid management program of the city government of Laoag. The city government of Laoag.

In 2009 through the Public Private Partnership agreement between the Luzon Green Art Technology, Inc and the City Government of Laoag to strengthen the Implementation of the Integrated Solid Waste Management.

In 2014, a Memorandum of Agreement was entered by and between the Government of Laoag Employees Development Cooperative and the Local Government of the City of Laoag. GLEDCO acquired all the assets and properties of the Luzon Green Art Technology , INC. (LGA Tech) and became

15

involved in the operations and management of the now Sunshine City Materials Recovery Facility. Thus, the facility is now under the name, GLEDCO Sunshine Recycling Facility or GSRF. GLEDCO provides an oversight and management guidance and supervision to the overall operation of the central facility. Wastes from the city are collected, further segregated and processed into organic substances or materials. GLEDCO also donated 2 Million worth of various equipment for the city’s waste management. The co-op will operate under contract until 2023.

The productsproducedfrom collectedsolid waste by GLEDCO’SSunshine

Recycling Facility (GSRF) are: Hollow blocks Pavers Organic fertilizers

All of these products meet the standards of the Bureau of Soils and Water Management of t f he Department of Agriculture and; the Department of Public Works and Highways, Bureau of Research and Standard Section.

The co-op’s facility converts biodegradable garbage – like peelings and left-overs

– from the public market, restaurants, and households into organic fertilizer. On the other hand, non-biodegradables are processed into construction blocks.

16

GSRF Brick Making

Last year, GLEDCO produced and sold 85 tons of organic fertilizer and 660,000 hollow blocks and paving blocks. A direct result is a significant 40% reduction in solid waste and lower operational costs for the local government.

Direct beneficiaries of the program are 458 farmers who receive organic fertilizer and lessen their dependence on commercial chemical fertilizers, 46 waste pickers operating in the city’s disposal facility, GLEDCO members, and ultimately, the residents of the city and the environment as a whole. Some of the blocks are purchased by the City Government and used in the construction of government projects like housing and parks. Gross Sales last year for organic fertilizer amounted to P54,000.00. Hollow blocks sold were valued at P445,000 and for pavers P29,000.

Included in the contract with the City Government and GLEDCO signed last July

7, 2015 is that the fertilizers and blocks will “satisfy quality standards set by the Bureau of Soil and Water Management (for the fertilizer) and the Bureau of Product Standards (for the concrete products with plastics).

17

GM Edgar Pascual, Ms. Estela Damo City Cooperative Development Officer, RD Jo Bitonio & Staff

18

Tests conducted by the City Engineer’s Research & Standards Section show that the blocks could support 594 pounds per square inch (PSI). Meanwhile, the organic fertilizer passed testing by the Dept. of Agriculture’s Bureau of Soil & Water Management in Diliman, Quezon City.

GLEDCO General Manager Edgar Pascual announced that the cooperative received a Certificate of Recognition for 2015 Gawad Parangal Special Citation for Exemplary Environmental Protection and Conservation Program Regional Level held August 14, 2015 at CDA in Dagupan City.

From the CDA-DEO Data Base FY 2014

Government of Laoag Development Cooperative (GLEDCO) is located at the City Hall, Laoag City, The cooperative was registered Multipurpose Cooperative on January 22, 2001. Their current economic activities are: lending, trading, service. It is governed by seven Board of Directors, 138 staff, with 2,279 regular and associate members, and categorized as large size cooperative.. For the financial profile, they have a total assets of P 525,181,754.00, Net worth P 143,782,482, Volume of Business P 326,166,225.28, Gross Revenue of P 68,199,305 and Net Surplus of P9,355,795.00

19

STA. CRUZ SAVINGS AND DEVELOPMENTCOOPERATIVE (SACDECO)

THROUGH THE YEARS

SACDECO continues to be a strong financial intermediary and catalyst of growth in the countryside. From the mere 25 cooperators since its inception, the cooperative has now more than 29 thousand regular members. From its PhP5,000.00 initial capital, the long dream of SACDECO to reach the Billion Mark was attained on February 10, 2015.. SACDECO is now operating Luzon Wide with 16 Branches, 3 Satellite Offices and counting. The Aflatoun and Youth Tipid Movement are the members of the said Lab Coop. Now, they are more than 5 thousand youth members/savers. During SACDECO 31st Anniversary, Ms. Josephine Bitonio, the Regional Director of CDA Region I, joyfully announced that our very own COB, Mr. Alexander B. Raquepo was awarded Cooperative Ambassador for Region I for his outstanding contributions and being an active advocator of cooperative philosophy and principles.

Chairperson Alex B. Raquipo as 2015 Coop Ambassador of Region 1

SACDECO Through the years

The contribution of SACDECO to the wider social, economic, environmental dimensions is attributed to the workforce of SACDECO staff, officers and members, God has blessed the cooperative with numerous blessings.

2006 – SACDECO Hongkong Chapter was organized.

20

2007 – Opening of Santiago and Bacnotan Branches San Fernando City Branch in La Union was opened in partnership with

NATCCO 2008 - Opening of Bangar, Branch

o SACDECO went high tech by realizing its dream of an Automated Teller Machine which was launched this year. This is the 1st COOP - ATM north of Manila. It is also the 1st ATM in Sta. Cruz, Ilocos Sur

o SACDECO became a strongest advocate and practitioner of Gender Equality this year in north of Luzon with a Gender Sensitive Human Resource Manual.

2009- Opening of Asingan and Villasis Branches in Pangasinan

2010– The general assembly approved a wider area of operation ,thus making it Luzon wide.

2010- Opening of Bayambang Branch in Pangasinan and Cuyapo satellite Office in Nueva Ecija

2011 - SACDECO turned over the San Fernando City MICOOP Branch to the Sugpunan ti La Union Credit Cooperative.

2012– Opening of San Jose Branch in Nueva Ecija

2013 – Mangaldan, and Pidigan Satellite Offices were established this year. Administrative Building was inaugurated.

2013- Pinili Branch, Umigan, Bauang and Narvacan satellite offices were opened. Likewise, Mangaldan and Cuyapo Satellite offices became branches this year

2014 – Paniqui, Alaminos, Agoo and Bangued Branches were opened this year 2015 Laboratory Cooperative was recognized by the Cooperative

Development Authority (CDA) and the certificate of recognition was issued on March 05, 2015.

o Partner with Generika on April 18, 2015;o Launched Teens ATM Savings on August 17, 2015o Partner with other agencies and signed MOA. SSS on October 31, 2015;

DSWD on February 06, 2014 and NGO (Sta. Cruz Municipality) accreditation on Dec. 22, 2014; partnership with St. Martin de Porres Hospital and FLX Clinic on December 17, 2015

2016- Put up ATM at Asingan Branch on April 2015.

21

Mini Trade Fair of Cooperative Products during the Christmas Program of 2015

The continuous growth of SACDECO is now beyond restraint through its affiliations and partnership with the following;

National Confederation of Cooperatives (NATCCO), Metro South Cooperative Bank (MSCB), Nueva Segovia Consortium of Cooperative (NSCC), Northern Luzon Federation of Cooperatives (NORLU CEDEC), Ilocos Sur Cooperative Bank (ISCB), Land Bank of the Philippines (LBP), Asian Women in Cooperative Development Forum (AWCF), Small Business Fund Corporation (SBC), Coop Life Mutual Benefit Services (CLIMBS), Agricultural Guarantee Fund Pool (AGFP), Philhealth, Social Security System (SSS) Generika Drugstore, Western Union, St. Martin de Porres Hospital, and FLX Clinic

Social Responsibility

Social responsibility is important to a cooperative because it demonstrates to both members and public that that the cooperative takes an interest in wider social issues in the local and national or global. For the year 2015, here are our SR projects:

o December 29, 2015 and March 15, 2015 - Mushroom Production for Laboratory Coop Members, Non-members and Regular members.

o December 28, 2015 – Oath taking/Orientation of Youth Officers and Committee conducted by COB, Mr. Alexander B. Raquepo

o December 21, 2015 -Donation/ gift giving to special children at Pinili Branch December 21, 2015- Giving donation to South Central School at Santiago

22

Brancho December 18-19, 2015- SACDECO Trade fair

December 19, 2015 - Members and Management Staff in Celebrating 31st

year anniversary.Our guests were Ms. Josephine Bitonio, CDA Regional Director and Mr. Anthony Bravo, Congressman Coop NATCCO Partylist.

CDA Regional Director Jo Bitonioand Mr. Anthony Bravo, Congressman Coop NATCCO Partylist

o October 28, 2015 – School feeding at Villasis Brancho August 21, 2015-Gender Sensitivity Training for new employeeso Financial Education Program for teachers and students in the following

school:o Amarao National High School- October 24, 2015o Our Lady of Guadalupe Academy – Nov. 04, 2015o San Francisco Elementary School – Nov. 05, 2015 o October 30-31, 2015 Youth congress/Kiddie Congresso May 09, 2015- Aflatoun Teachers’ Training at Santiago Branch o April 30,2015- Aflatoun Teachers’ Training at Mangaldan Brancho SACDECO co-sponsored the conduct of tax forum. Likewise, joined the

celebration of regional, show of force on October 24, 2015 and the commemoration of the death of the Late Butz Aquino.

Profile of SACDECO taken from the CDA DEO database FY 2014

SACDECO is located at Poblacion Este, Sta. Cruz, Ilocos Sur, registered as on Oct 14, 2009. It started as credit cooperative, later on to cater to the needs of members , the cooperative amended its type to Multipurpose Cooperative. It is engaged in lending and service. It is governed by nine Board of Directors with 126 support staff serving 16 branches. For its financial performance, it has a total asset of P 961,119,941.39, Net worth of P 241,731,641.73, Volume of Business of P 613,829,545.71, Gross Revenue of P 120,086,762.80 and Net Surplus of P 21,899,539.44

23

Nueva Segovia Consortium of Cooperatives (NSCC): A Leading and Trusted National Consortium of

Cooperatives

NSCC was organized as a secondary cooperative in the Archdiocese of Nueva Segovia, organized by 18 Catholic Church based cooperatives starting with an initial capital of P13,000 and registered with CDA on September 17, 1992 and was reregistered on October 1, 2009. NSCC reached its billionaire status in 2014 and the first billionaire cooperative in region. NSCC has 17 branches spread in Region 1 and CAR with 171 full time employees with PhP 1.5 Billion Assets (Dec. 2015). Among its programs and services was coined NSCC F.A.C.T.S which stands for Financial Services, Agro-enterprise and Marketing, Capability Building Services, Tourism Services, Social Services

Financial Services← Wholesale lending program for primary cooperatives. The wholesale lending

program was the pioneer service offered by NSCC to its members. This aims to provide members with financial loan assistance to finance their different projects. The loan assistance is given with minimal charges

← NSCC and the Provincial Government of Ilocos Sur for an endeavor to provide livelihood opportunities to people of Ilocos Sur. The Provincial LGU entrusted livelihood funds to NSCC for a livelihood program that will benefit farmers, fishermen, cooperatives and other sectors of the community most particularly those who belong to the entrepreneurial poor. The City Government of Vigan likewise entrusted NSCC with a livelihood fund, at first to subsidize the interest of loans of pottery makers then from this program it evolved to providing financial loan assistance to microenterpreneurs, cooperatives and farmers. Then on year 2010, the Municipal Government of Caoayan also entrusted a livelihood fund to NSCC for the purpose also of providing access to financial services for sectors in agriculture, aquaculture and those under the One Barangay One Product program. The partnership livelihood program with the three LGUs is ongoing and the success of the program can be manifested by the increase of beneficiaries and the evident progress that the beneficiaries had achieved because of the help of said program. Another manifestation is the several nominations and awards that recognized said partnership effort. As an

24

Nueva Segovia Consortium of Cooperatives (NSCC) is a Leading, Trusted National Consortium of Cooperatives that Helps Empower Communities through its diversified services.

active NGO partner, NSCC has always been invited to become member of different committees that oversee different concerns of said LGUs. The CEO Mrs. Divina C. Quemi is infact the appointed focal person of National Anti Poverty Commission to the Province of Ilocos Sur.

B. Agro-enterprise and Marketing. After providing the primary coop membersand individual members with financial help for their income generating activity, the next project that NSCC ventured is the marketing of their products. NSCC believes that creating opportunities to market their products is a big help to sustain their businesses.

Bath and Coffee. The NSCC made coffee its value chain project by putting up a bath and coffee shop where the products of farmers and cooperatives that are producing coffee are being sold to NSCC. The delicious coffee being processed came from the coffee beans of Ilocos Sur. The NSCC bath and coffee is one of the most favorite beverages of all time! Before. While before, coffee is only served during breakfast and served as hot drink nowadays drinking coffee is being enjoyed not just as hot black coffee but in different flavors hot or cold and at anytime of the day. Because of the fast rising popularity of coffee, farmers are encouraged to try coffee production especially those at the mountainous cold places.

Farmers Entrepreneur Program. This program started in year 2011 when the National Livelihood Development Corporation invited NSCC to be one of the cooperatives that will implement the Farmers Entrepreneurship Program, a flagship program of the NLDC, Jollibee Foods Corporation and the Catholic Relief Services. The aim of this is to assist farmers to produce quality onion products that can be delivered to Jollibee Foods Corporation and other institutional markets. The program gave the farmers adequate trainings from land preparation, monitoring until harvesting.

25

They were also taught on how to market their products, prepare financial reports and do the negotiations. As of today there are already 75 farmer beneficiaries from the City of Vigan, Municipality of Caoayan and the Municipality of Sinait. For 2014 and 2015 not less than 90 tons were delivered to said institutional buyer which came from the harvest of the farmer beneficiaries. NSCC has also expanded its agricultural program – FEP – at the province of Pangasinan. The cooperative is currently managing the program at the four sites in the province specifically at Alaminos, Alcala, Bani, Mapita, Pangasinan.

c. Palay, Rice Marketing and trading. It started in 2014 when NSCC buys the palay products of primary cooperatives. The palay bought are milled and sold to its members in different branches. The aim of this is to help the cooperatives market the produced palay of their members. The scheme is either sold in cash or the cooperative can borrow a capital to buy the palay products of its members. Bought palay are milled by NSCC and then sell it as rice to NSCC Palay and Rice Trading cooperatives.

26

Through the NSCC MPC, NSCC started to market local products thru organizing the NSCC Employees Marketing Cooperative and this was registered on July 30, 2007. This employees’ cooperative aimed to promote the local products of members like hog products, poultry, rice, local delicacies like longganisa, bagnet. These are sold to employees thru cash and credit. To increase the marketing outreach of products, NSCC have tried attending trade fairs, displaying it in pasalubong center, and promoting it at NSCC Plaza. On November 27, 2009, the NSCC Employees Marketing Cooperative was converted into NSCC MPC. Aside from doing marketing activities, the cooperative also created a credit program for employees and other members.

• The Agrarian Information and Marketing Center (AIMC). Thru a selection process made by the Department of Agrarian Reform and the Japan International Cooperation Agency, NSCC was selected to handle the ARISP III Project of the province. And under this program is the creation of an agriculture center called Agrarian Information and Marketing Center or AIMC and this was built at the two hectares property of the cooperative or Industrial Zone of NSCC at Don Dimas Querubin, Caoayan, Ilocos Sur. The AIMC program has the following activities: 1. Marketing of fertilizers – this is in tie-up with different fertilizer companies like the Universal Harvester Inc. 2. Buying of Palay – palay products mostly came from Primary Cooperative members. 3. Rice Marketing – the milled palay are now being marketed to members and primary cooperatives. The construction of this facility is being donated by the Department of Agrarian Reform, Municipal Government of Caoayan and the Japan International Cooperation Agency. NSCC will soon venture cooking oil refilling business to be located at this Industrial Zone of NSCC.

• The Agro-enterprise program of NSCC aims to help the farmers market their products from local market to national market. This also aims to make the primary cooperative members an integral part of this project.

f. Partnership with LGUs. The Provincial Government with the help of the Department of Trade and Industry is doing numerous progams that aims to boost the production of coffee in the Province. One of which is the distribution of free seedlings in the 14 upland municipalize. Another is the provision of trainings to farmers to guide them on proper planting and care of the coffee seedlings.

27

C. Capability Building Services

As an Accredited Training Provider. Education is very vital in the successful operation of one cooperative. This is the very reason why NSCC established a facility where it will gather cooperative officers for trainings or learning activities. Before the Cooperative Development Authority has launched mandatory trainings that cooperative officers must comply, NSCC is already conducting trainings for the officers of primary cooperatives. It established the NSCC Microfinance and Training Center for the said purpose. On 2011, the Cooperative Development Authority has launched accreditation to institutions that will serve the training needs of cooperatives. NSCC applied and was accredited as Coop Training Provider on October 2012. The NSCC have created pool of speakers that are professional coop trainers and well capable young staff of NSCC. With the said program, NSCC had established tie-up with the Social Enterprise Development Partnership Inc. (SEDPI), National Tobacco Administration and the Department of Agrarian Reform.

a. MACRO-NSCC COLLEGES, INC. One of the advocacies of NSCC is to provide affordable education for the youth sector and train them of the value of cooperativism. The turn-over of the MACRO-NSCC Colleges, Inc. was conducted on June 11, 2014 at NSCC Plaza, Caoayan, Ilocos Sur. Macro-NSCC Colleges, Inc. offers the following courses: 1. BS Information Technology; 2) 2. BS in Information Systems 3. BS in Business Administration; TESDA COURSES

1) Computer Technician, 2) House Keeping, 3) Front Office Services, 4) Commercial cooking,

At present MACRO-NSCC is offering free scholarships on Computer Technician course and it is also currently processing its requirements for accreditation to offer K-12 Curriculum.

28

Tourism Services

← Hotel and Accommodation Services. NSCC was the first to establish a Cooperative Hotel and this was built at Don Alejandro Quirolgico, Caoayan, Ilocos Sur. It was inaugurated on March 27, 2011 and was duly accredited by the Department of Tourism. Reasons why NSCC ventured into hotel operations: 1. To make this a training center so that conduct of trainings will be more convenient for guests and participants. 2. To boost tourism industry. The cooperative network is a good market for tourism activities 3. To generate more profit that will benefit members 4. To generate employment. 5. To add prestige to the cooperative The hotel is not only a favorite training spot for cooperatives and NGOs, it is also one of the favorite venue for weddings and other celebrations. NSCC Plaza’s services are widely promoted in the cooperative sector. It likewise enjoys promotion at the internet thru the NSCC website and the Agoda website.

•NSCC HOTEL VIGAN This 2015, NSCC has opened the NSCC Vigan Hotel located at Governor Reyes St., Vigan City Ilocos Sur. This is another venture of NSCC to further promote tourism in the province and to complement the services of the NSCC Plaza.

•NSCC BATH AND COFFEE SHOP NSCC Bath and Coffee which aims to serve the growing tourists of Vigan being one of the new7 wonders cities of the world. It serves as coffee shop and at the same time offers bath services

29

to visiting tourists of Vigan. NSCC also aimed to provide additional services for the benefit of members.

• Social Services← Partnership with PHILHEALTH AND SOCIAL SECURITY SYSTEM – NSCC had

a tie-up with PHILHEALTH and SSS to make payment of premiums more accessible as well as to assist members of their different needs that concern said agencies.

← BAYAD CENTER SERVICE – another way for NSCC to serve members with ease in paying their different bills. This will start at the month of November 2014 in some of the branches.

← ATM SERVICE in Pagudpud thru partnership with Encash

c. Insurance services and Mutual Benefit Association (MBA) Insurance Services Mutual Benefit Association which will be registered as an institution that will provide mutual aid to 1) members particularly the members under the microfinance program Coop Assurance Center – in partnership with the Coop Life Insurance and Mutual Benefit System.2) Different insurance services of CLIMBS will be offered to primary cooperatives thru NSCC. Gojo Program – a project under the ARISP III where all members of ARC Cooperatives are encouraged 3) to be a member of the Gojo program. The program shall benefit members with Php 20,000.00 mutual assistance and another Php 20,000.00 for wedding assistance. Crop Insurance – this is in partnership with the Philippine Crop Insurance Corporation, to provide 4) security to farmers incase their plants will be damaged due to calamities.

← Advocator of Gender and Development. Aside from the continuous cooperative education, cooperative tourism, NSCC also advocates gender equality. NSCC is one of the active partner of the Asian Women in Cooperative Forum that is

30

implementing gender sensitive programs in its operation. As proof of this is the installation of 1 woman representative to the Board of Directors and this being done every Gender Congress held every two years. The other is the automatic membership of 1 woman to the committees.

Continuous Promotion of Services through PTV Ilocos Channel. NSCC recognizes the role of media as its partner in making people aware of the services of the cooperative. Thru its CEO, a weekly program is being aired at PTV Ilocos Channel, one of the local channels being aired and this is entitled “Coop ti Communidad”. This is where different activities of NSCC, programs and services, coop news and others are being informed to the people.

Live Interviews

h. Community Involvement Activities. The NSCC has now become a favorite invitee of different Local Government Unit activities, the CEO makes sure that NSCC is always present and actively participates in all activities, either meetings, forums, including special occasions. Below are the regular activities NSCC is joining annually.

i. Vigan City Festivities

1) KANNAWIDAN Festival2) Capayan Ilocos Sur Town Fiesta3) Narvacan Ilocos Sur Bagnet Festival4) Coconut Tree Planting5) Donations to community Development Projects6) Blood Letting7) Members Welfare Services8) Medical/Dental/Optocal Mission9) Trade Fair10) NSCC’s Financial Performance11) Christmas Party

31

Tree Planting at Bacarra, Ilocos Sur

NSCC Profile Taken from the CDA Database FY 2014

NSCC is located at Caoayan, Ilocos Sur was registered on October 1, 2009 as Federation. They cater to lending, service, agribusiness, supervised by nine Board of Directors, 182 staff . The 1st billionaire cooperative in the Region 1 with 135 affiliates. For its financial performance, the federation has a total assets of P 1,222,213,187.83, Net Worth of P 169,527,624.15, Volume of Business P869,145,876.99, Gross Revenue P168,075,468.84 and Net Surplus of P22,959,312.02

32

The Metamorphosis of San Joaquin Multipurpose Cooperative

To quote a famous philosopher, “Necessity is the mother of invention.”

This maxim holds true for the San Joaquin Multi-Purpose Cooperative, for long before its birth, life in the community was remarkably hard. Organizations of different types were created by various government agencies but unluckily most of them faded away leaving behind people of the community hungry for social belongingness, economic progress and development.

It was at this stage that the folks of Barangay San Joaquin led by Mr. Celso G. Rasalan and Mr. Camilo B. Rasos, who eventually became the Chairman and Vice-Chairman respectively, conceived of incorporating their skills and resources with the main purpose of “Changing Lives” in the community. So in 1984, with barely 17 initial members and a scanty capital of Seventeen Thousand Two Hundred Pesos (P17,200.00), the San Joaquin Samahang Consumers Cooperative was created. A small store building (3x4) was built out of improvised materials raised by the founding members. The benefits of having an accessible and convenient store, people in the community inspired to join the group.

Instantaneously, the Cooperative became the haven of the people particularly those who could hardly make both ends meet, it was observed that farmers tend to borrow capital from loan sharks. The Board of Directors, as sensitive as ever to the needs of the members, resolved for the creation of a Credit Department to solve the financial constraints of its constituents practically those belonging to the marginal strata.

Slowly the Cooperative became popular. Trust and confidence among the members sprouted. More money was infused to the Coop through Savings and Time Deposits. Thus, indirectly savings mobilization and Capital Build-up that is a common problem to all coops was neutralized. Providential and Agricultural loans at minimal rates were extended slowly eradicating the usurers that has been sucking the blood of these poor farmers. Simultaneously, its scope of operation covers the whole municipality.

33

As the Credit Department gained tremendous popularity in the community, membership had increased phenomenally. This paved the way for the formulation of control measures to protect the interest of the cooperative. This vital transformation created an impact in the locality particularly the way of living of the people. They have realized that teamwork and solidarity, if coupled with discipline and perseverance can build roads and bridges.

In 1988, the whole archipelago faced oil crisis. Day to day activities were greatly affected especially transportation and farming. The Leaders of San Joaquin MPC pursued to have a Coop owned & manage gas refilling station. Applying in all the oil companies in the country, the cooperative was armed only with one thing, its quest for growth and development. But who would believe in a small rural-based organization ran by farmers? Only the Caltex Philippines did, San Joaquin MPC was the first Gasoline Station to operate in the municipality which turned out to be one of Caltex Philippines biggest client in the north, surpassing in sales many of the filling stations in the province.

The Gasoline Department became the top grosser of the Cooperative then, so a need to have its own Hauling Tanker was figured out. The only problem then was capital. It applied for a facility loan at Land Bank of the Philippines but due to voluminous requirements, the Board of Directors thought of other way, instead of borrowing, they created a program to neutralize the problem, it offered higher savings and time deposits compared to commercial banks. The cooperative slowly affirmed its role and underscoring its mission, eradicating unscrupulous capitalists.

Gasoline Refilling Station

34

In so short a time, with the launching of its various business ventures the Cooperative became the epitome of a typical Multi-Purpose Cooperative. With these developments, government agencies like Dept of Agriculture and Dept of Trade & Industry recognized the cooperative’s performance. Financial assistance to members named “Tulong sa Tao” were availed for several years.

The Department of Agriculture granted the SJMPC a Solar Drier under the former’sLivelihood Enhancement for Agricultural Development (LEAD) program. Later, this grant would play a major role in the conceptualization of a new business particularly palay trading and rice milling to maximize the utilization of this drier.

From then on, there was never a year to relax for the SJMPC as it pursued community growth and development. In 1991, a warehouse was constructed in a 542 square meter-lot that was acquired for P100,000.00. Through the self-help (free-labor) of the members, the edifice was erected. After which, a six-wheeler ELF truck was procured to haul and deliver farmer’s products.

The year 1993 was a very remarkable year in the annals of the San Joaquin Multi-Purpose Cooperative. The first National Award given by Dept of Agriculture being the OUTSTANDING SMALL FARMERS/FISHERFOLKS ORGANIZATION held in Malacañan Palace and a runner-up in the PARANGAL NG NEPA in the national category. With this achievements, the SJMPC received a cash award of P200,000.00 that was eventually used to purchase a Satake Cono Ricemill.

In 1994, as the Cooperative continued to grow and its membership multiplied by folds, Koop-Drugstore was established in front of the Sarrat Public Market to further serve its members’ needs.

35

With more than a decade of fruitful existence, the SJMPC showed no signs of contentment. In 1997, it expanded its warehouse to accommodate voluminous farmers’ produce and the Consumers Store, which was a mere sari-sari store, was replaced by a 2-storey building, now a Grocery Store, equipped with electronic point of sale (POS) and CCTV cameras.

Part of growth and development, a 2-storey Credit & Admin Building was constructed equipped with updated computer machines, fully airconditioned, fireproof vault, CCTV cameras and other necessary facilities to accommodate voluminous daily transactions.

The single tri-bike used as delivery equipment during its early operation was replaced by newly acquired trucks, haulers, cabs and motorcycles.

36

As a proof that the government extols the achievements of ordinary citizens, the cooperative posted an award winning-streak that is yet to be surpassed among cooperatives in the Province. Here are the most significant awards the Cooperative has had for the last 30 years of existence:

Top Performing Cooperative, Reg I – 2014, CDA

37

Ginintuang Kooperatiba, Agri-Cat- 2012, LBP-Gawad Pitak Hall of Fame – 2011, LBP Gawad Pitak

Ist Placed, Gawad Pitak, Agri-Cat – 2010, LBP

Ist Placed, Distinguished Award for MPC – 2010, CDA 2nd Place, Gawad Pitak, Agri-Cat – 2009, LBP2nd Place, Gawad Pitak, Agri-Cat – 2008, LBP 4th Place, Gawad Pitak, Agri-Cat – 2007, LBP 3rd Place, Gawad Pitak, Agri-Cat – 2006, LBP 4th Place, Gawad Pitak, Agri-Cat – 2005, LBP

38

Outstanding Small Farmers & Fisherfolks Org., National - 1993, DA

With these diversities, the Board of Directors, Officers, and Management Staff never lost focus to what they are bound to pursue: “Service to the people and to the community.” This might be the rationale behind the rapid growth of the Cooperative. It has certainly created an image worthy of trust and confidence from the public. And by being proactive and creative and by living-up to a culture of excellence in all its undertakings, the San Joaquin Multi-Purpose Cooperative slowly etched its name in the archives of cooperativism.

Partnerships with well-known business tycoons were made. Distributorship of Coca Cola products and San Miguel Beer products were awarded to San Joaquin MPC, the first Coop to enter in such venture. Kabalikat ng Magsasaka with Universal Harvester Inc. and the Northern Foods Corporation of Food Chain Supply Agreement.

Linkages and affiliations to tertiary coops made a way for San Joaquin MPC to walk in a better journey.

39

CISPMSCBPHILACPFWCCBINIMHSCPCUPCDC-INNATCCOCOOP-NATCCO PARTYLIST

Government Agencies

DSWD MOA on 4P’s Program LBP Lending Center Food Chain - NFC

40

Continuous Education forms a vital role for the Cooperative’s strong foundation. Educational trips are conducted to big and successful cooperatives and other agencies .

As one of the Cooperative Principles “Concern for the Community”, various community services are being conducted always, to mention some:

Supplemental Feeding

Potable Water Source

41

Scholarship program (Secondary to College Degree)

Accommodation of On the Job Trainees

Researchers

42

Mutual Death Aid Assistance

Today, with the cooperative efforts of its highly competent BOD’s & Committees,52 motivated and efficient Management Staff and a very supportive membership, the Cooperative have metamorphosed from a mere Consumers Store to a multi-line business that is expanding in response to the demands of its constituents. Its Total Assets have ballooned to 130 million pesos, Total Paid-up Capital to 24.662 million pesos and its membership to 3,833 as of December 31, 2014.

San Joaquin Multipurpose Cooperative Profile taken from CDA-DEO database FY 2014

San Joaquin Multipurpose Cooperative is located at Sarrat, Ilocos Norte. They are engaged in lending, trading and services with seven Board of Directors and 57 management staff with a total of 5048 members. For the financial highlight, their total assets is P 148,389,783, Net worth of P 45,767118.00, Volume of Business of P 270,905,865, Gross Revenue of P 23,588,786 and Net Surplus of P7,294,457.00

43

A Unique Activity of LCCrC in 2015

The Lingayen Catholic Credit Cooperative (LCCrC) is a “self-help” cooperative established behind the principles of cooperation for the parishioners who were earning a living from a meager capital of a “buy and sell” business in the market. These market vendors were then the target of the loan program of LCCrC. The growth of the cooperative moved with the increase on membership from small earner groups classified as “Self-Employed” member as well as those employees from the government and private entities, until it has reached its life span of 50 years serving the needs of members with its multi-million worth of assets.

After the re-registration of LCCrC to continually operate for another fifty (50) years, the rationale on how it was founded came back to the doorsteps of our cooperative with the opening of the Lingayen New Public Market Building in 2015. Market vendors who are members and non-members of LCCrC are most affected for the high rental fees and other charges being imposed to them to settle for business. These people voluntarily went to the office to become members of the cooperative. They sought financial assistance to either start or continue their business. LCCrC again responded to their plight immediately setting aside the great risk that maybe encountered in the repayment of loans.

The Board of Directors Receiving their Award during the 2015 Cooperative Month Celebration With Hon. Adm. Benjie Oliva, RD Jo B. Bitonio and Acting ARD Eve Muñez

44

A program of activities, guidelines was prepared in granting the “Instant Loan” special for Meat and Fish

Vendors which are as follows:

Must undergo the Pre-membership Education Seminar Must be a registered applicant for stall ownership permit/ business permit

from the Municipal Government. Must have the required deposits Collateral shall be the “Stall Ownership Documents” for business. A minimum amount of Php500.00 as initial share capital deposit is allowed to

entitle each on for membership control number, however, the balance amount for required deposit shall be deducted from the loan proceeds.

Amount of loan is Php50,000.00 / Php75,000.00 / Php100,000.00 for a term of 24 months (2 years at 13% interest annually)

Mode of payment is daily ( 20 days a month’s) of the monthly amortization plus interest.

This type of loan program also covers the old regular market vendors.

An amount of Three Million (Php3,000,000.00) pesos was provided for this project in which the total amount of Php2,650,000.00 was released to 48 market vendors in October 2015. The recipients are so happy and grateful upon receiving the proceeds of their loan with the hope of improving their economic status in life.

A visit to CDA Dagupan with RD Jo B. Bitonio and staff

After a month, it is worthwhile to note that daily payment collection is 100% showing self-determination and commitment of being good member of the cooperative.

45

On the other hand, LCCrC has achieved its goal to empower its poor members in accordance with the accepted principles of cooperation.

Profile of Lingayen Catholic Credit cooperative taken from the CDA-DEO database FY2014

The Lingayen Catholic Credit Cooperative is located at Epiphany of our Lord Parish, registered on October 20, 2009. The cooperative caters to lending and savings with nine Board of Directors, 25 staff, serving 11,931 regular members. They also have 10272 associate members. The cooperative is categorized as large size cooperative. For its financial performance, the cooperative has a total assets of P 286,748,541.32, a Net worth of P 132,622,987, Volume of Business of P 101,089,800, Gross Revenue of P 26,176,733.89 and Net Surplus of P 5,441,469.08.

46

LA UNION MULTI – PURPOSE COOPERATIVESan Nicolas Central, Agoo, La Union

CDA Registration No. 9520-01-001492Tel. No.(072) 710-1153

Email:lumpcoop@yahoo.com

LA UNION MULTI-PURPOSE COOPERATIVESuccess Story

La Union MPC started as a women’s organization founded by then Vice-Governor Amparo Aspiras, meant to empower women, particularly the politicians’ spouses. But the circle expanded to accommodate interested women who wanted to do something worthwhile with their time. Hence, La Union Ladies Association (LULA) was born.

A quarter of the century later, after so much evolution, La Union Multi-Purpose Cooperative thrives as a fast-growing institution in La Union and in Region 1. LUMPC is now a long way from what it used to be. From an institution that catered only to civic-minded women to a cooperative meant to serve people from all walks of life.

LUMPC’s mission is to make better the lives of its members through its credit services.

Offering three loan windows (regular, educational, and emergency) to its clients, the Cooperative has offered assistance to members who wish to start business from a scratch, to send their children to school, tostart life anew after an act of God, or simply to satisfy their personal needs. Other than its credit services, it also has a grocery store and canteen, travel and tours, loading, speed-sewing, and Western Union services, all of which are being patronized by its members. With the intention of setting a good example to the management staff and members, the directors themselves patronize these services after every meeting.

With the passing of time, much has changed since the Cooperative was founded in 1991. The mission, vision and objective remains, but life-changing programs have also been established, attributed to the Board of Directors who genuinely care for its members. The Cooperative sends poor but deserving students to college, shouldering their tuition and giving them summer jobs in which they are given allowance for the work they render. It has also partnered with the Rotary Club of Agoo in giving trainings on speed-sewing to out-of-school youths and interested individuals. With these trainings, they could start a cottage business and earn money which would help them subsist.

47

2016 AGA of LU MPC with ED Ray R. Elevazo and RD Jo B. Bitonio

La Union Multi-Purpose Cooperative does not just care about the improving its members’ lives economically, but also physically with its unique Health and Wellness Program (HWP). This program, proposed by its chairperson, Rev. Fr. Liberato Apusen, entitles interested members to a lifetime medical and dental benefits with a minimal registration fee which they may pay in instalment basis. Gina, a member, was hospitalized because of gastritis for four days. Good thing, she is a HWP member. Upon her discharge, she endorsed to the Cooperative the papers to prove she was admitted in a hospital. The program in turn granted her two thousand pesos for each day she spent in the hospital, P 1,000.00 for her medicines and P 1,000 for the doctor’s professional fee. This was other than the PhilHealth benefits she is entitled to as a teacher. And if ever she gets sick again, she will again enjoy similar benefits from HWP.

Another program unique to the Cooperative is the AID (Adopt an Indigent or Disabled Person), another brainchild of the chairperson’s. Beneficiaries of the program are selected individuals who earn less than P 6,000.00 a month and are not members of any foundation. The AID beneficiaries automatically become members of the Cooperative, entitled to its Health and Wellness Program, scholarship to one of his dependents and a five-thousand-peso (P5, 000.00) capital from which he can start a cottage business.

Considered by the Cooperative as its best practice is the “Paluwagan 5”. With credit service as its main service and patronized by thirty percent of its members, the Cooperative finds it particularly challenging to collect from its borrowers. One way to ease their burden of amortizing is having them join “Paluwagan 5”, which allows them to shoot two birds with one stone – part of the proceeds goes to the Cooperative as payment of their loans and part goes to them as cold cash.

La Union MPC is also a consistent Gawad Parangal Awardee since 2012 and have been recognized at the provincial, regional and national levels.

48

Recognition of Gawad Parangal Awarding at the National LevelWith Chairperson Orlan R. Ravanera

Profile of La Union Multipurpose Cooperative taken from the CDA database FY 2014

La Union Multipurpose Cooperative located at San Nicolas Cental Agoo was registered on October 30, 2009. The cooperative is engaged in lending, trading and other services. It is governed by five Board of Directors and assisted by 19 staff with 3 satellite offices. For its financial profile, it has a total assets of P117,059,588.76, Net worth of P 30,615,730.62, Volume of Business of P 828,868 and Net Surplus of P 7,633,861.12

49

COOPERATIVE PROFILE

Address : Poblacion, Galimuyod, Ilocos Sur Tel. No. : (077) 742-6404(077) 644-0529

Contact Person : Jaime Dongalen Gaboy, Jr. Contact No. : +639175683228Address : Rubio, Galimuyod, Ilocos SurDate Established : April 2, 1972CDA Re-Registration Date : December 7, 2009& Number : 9520-01004061Tax Identification Number : 263-534-145SSS No. : 01-1276553-4Company type : CooperativeNature of Business : MultipurposeYears Existed : 43 years

BRIEF HISTORY:

The Sacred Heart Savings Cooperative was first organized on April 2, 1972 as the Galimuyod Credit Union. A group of 33 or so parishioners of the Sacred Heart of Jesus Parish in Galimuyod, Ilocos Sur took the initiative to organize as a credit union in order to respond to their needs in their economic life. The union started with a capitalization of P916 and its principal office was located at the Sacred Heart of Jesus Parish rectory. The first set of officers was Mariano Rafael as president, Francis Makil as Vice President, Jose Sabado Jr., as Treasurer, and Lilia Balicdang as Secretary.

On December 18, 1984, the credit union was converted into a Kilusang Bayan pursuant to presidential decree no. 175 and LOI No. 23 and was confirmed by the CDA on December 31, 1990. In June 1997, the coop was converted into a multi-purpose cooperative providing legal basis for its expansion programs like the establishment of the consumers and marketing section.

In 2002, the Cooperative took a bold move by yet another amendment to its by-laws changing its name from Galimuyod Multi-Purpose Cooperative to Galimuyod Savings and Development Cooperative; and expanding its area of operation to the whole province of Ilocos Sur. As an offshoot to the amendment, the Cooperative put up its Branch Office in Candon. In February 2007, the Cooperative opened its 2nd branch office located at San Jose, Narvacan, Ilocos Sur. A third branch was put up in San Emilio, Ilocos Sur on March 15, 2009 to serve the communities in the uplands. On July 13, 2010, the name of the Cooperative was changed to Sacred Heart Savings Cooperative as a preparation for its expansion on its area of operation within Region and Abra. On the 12th day of April 2011, a new

50

branch was opened at San Fernando City in La Union. As time passed, its operation expanded and opened twelve (12) more branches.

Under its Business Enterprise Department, the cooperative opened the SHSC Laboratory, Diagnostics, and Medical Clinic last November 26, 2013 to serve members and non-members in terms of their health. Cooprints, a large scale digital printing shop, was opened last June 25, 2014to give printing services for members. Coop Bazaar and Coop Events were also introduced to the members.

Under the able leadership of the present officers and through the efficiency and diligence of the staff, the coop has become one of the most dynamic cooperative in terms of growth having been awarded by the Cooperative Development Authority as one of the most outstanding cooperatives in the country (1st place CDA Gawad Parangal Regional Level-Large Scale). Last December 23, 2014, the Cooperative Development Authority – Region I proclaimed that the Sacred Heart Savings Cooperative is the First Billionaire Primary Cooperative.

VISIONA leading cooperative in the country that propels community development in

its area of operation

MISSIONTo provide a complete package of integrated services in building members’ lives

CORE VALUES Teamwork – to work together as one big family Integrity – to work in all honesty and uprightness for the common goal Professionalism – to deliver services to members efficiently and effectively Innovation – to continually effect new and novel programs to keep

abreast with the changing times Discipline – to uphold the Code of Ethics in the performance of our tasks Social Responsibility – to foster a culture of service while doing business

BRANCHES:Galimuyod : Poblacion, Galimuyod, Ilocos Sur

Tel. No. (077) 742-6827Candon City : Morales St., San Isidro, Candon City, Ilocos Sur

Tel. No. (077) 742-6404Narvacan : Sta. Lucia, Narvacan, Ilocos Sur

(0922) 879 4395San Emilio Cabaroan, San Emilio, Ilocos Sur

(0917) 508 8128San Fernando :

Diocesan Bldg., P. Gomez St., Brgy. II, San Fernando City, La Union

City

51

(072) 607-1871Rosario : Friendship Bldg., Tay-ac, Rosario, La Union

(072) 687-0153Rosales : Carmen, Rosales, Pangasinan

(0922) 563 7570Tagudin : #28 Pedro Sarmiento Bldg., Del Pilar, Tagudin, Ilocos Sur

(0917) 856 4572Dagupan City : WH Building, Maharlika Highway, Caranglaan District, Dagupan City

(0917) 826 8922Tayug : Zaragoza St., Brgy B, Tayug Pangasinan

(0905) 225 6929Burgos : Poblacion, Burgos, Ilocos Norte

(0935) 948 2785Magsingal : San Ramon, Magsingal, Ilocos Sur

(0905) 855 3293Sta. Catalina : Poblacion, Sta. Catalina, Ilocos Sur

(0905) 830 0200San Nicolas San Guillermo, San Nicolas, Ilocos Norte

(0917) 560 1653Mangatarem Royal Palm Plaza, Caoile-Olegario, Mangatarem, Pangasinan

(0926) 844 9964Paniqui M. H. del Pilar, Estacion, Paniqui, Tarlac

(0915) 578 4852Baguio City 3rd fl., MCR Robles Bldg., #69 Bokawkan Rd., Baguio City

(0926) 288 1230Science City Luisa Bldg., Bayuga St., Poblacion East, Science City of Muñoz, Nuevaof Muñoz Ecija

(0936) 556 5334

AREA OF OPERATION/ COVERAGENumber of Barangays : 2,107Number of Municipalities/ Cities : 150Number of Provinces : 8

CAPITALIZATION (as of rating period)

Authorized :PhP 500,000,000.00

Subscribed :PhP 500,000,000.00

Paid-up : PhP 212,748,454.84

52

MEMBERSHIP (As of December 31, 2015):

BRANCH MALE FEMALE TOTALGalimuyod 2,147 2,822 4,969Candon 3,226 4,981 8,207Narvacan 682 1,589 2,271San Emilio 910 1,099 2,009San Fernando 653 2,136 2,789Tagudin 1,011 1,811 2,822Rosario 453 1,383 1,836Dagupan 375 629 1,004Rosales 415 806 1,221Tayug 555 956 1,511Burgos 365 861 1,226Magsingal 334 795 1,129Sta. Catalina 268 441 709San Nicolas 201 546 747Mangatarem 203 441 614Paniqui 163 429 592Baguio 123 633 756

TOTAL 12,084 22,328 34,412

FINANCIAL ASPECT

Indicators 2011 2012 2013 2014 2015Total assets 232,159,763.66 376,292,786.19 573,648,450.55 1,008,283,208.00 1,419,662,555.65Share Capital 27,649,436.87 45,137,652.77 78,748,400.01 134,686,738.92 212,748,454.84Net Income 4,378,722.67 6,111,570.21 11,033,660.98 25,453,723.26 33,577,138.66Deposits 132,444,608.52 221,130,632.73 317,444,380.43 432,666,164.15 641,393,060.27Loan Portfolio 175,999,405.52 281,199,370.14 424,611,672.16 718,219,677.45 1,081,093,440.64Net worth 33,462,354.01 52,141,671.87 88,346,930.69 167,692,406.21 257,429,502.95Total Liabilities 198,697,409.65 324,151,114.32 485,301,519.37 840,590,801.79 1,162,233,052.70

PRODUCTS AND SERVICES

SAVINGS PRODUCTS← REGULAR SAVINGS

← Interest Rate: 2%PA← Maintaining Balance: PhP 500.00← Withdrawable anytime

←←

53

← PRIME SAVINGS← For Children 17 years old & below← Interest Rate: 8%pa← Initial Deposit: 500.00← May be withdrawn only when the Child is 18years old, or may be

converted to Share Capital.

← YOUNG COOPERATORS SAVERS CLUB← For children 17 years old and below← Interest Rate: 2%PA← Initial Deposit: 100.00 (MAINTAIN P500 TO EARN AN INTEREST.)← Can be withdrawn anytime or may be converted to share capital.

← PANGARAP SAVINGS← Set a savings goal← Establish a Time frame← Figure out how much you’ll have to save per day, per week, or per

month← Open an interest bearing savings account.

← SARANAY SAVINGS← Interest Rate: 2%← Maintaining Balance:500.00← Exclusively for saranay contributions only

← TIME DEPOSIT

TIME DEPOSIT 3 m0s 6 mos 9 mos 12 mos10,000 to 99,999.99 6%p.a. 7%p.a. 8%p.a. 9%p.a.100,000 and above 9%p.a 10%p.a. 11%p.a. 12%p.a.

LOAN PRODUCTSA. MICRO-FINANCE LOANS

Micro-finance (Business) For small entrepreneurs who want to start their own business or improve their existing ones.

• Micro-finance (Agricultural) For farmers who want to engage in livelihood projects or to finance their crop production costs.

• AGRICULTURAL LOANS← Production Loan

For farmers who want to finance crop production and farm inputs← Agricultural Facility Loan

54

For farmers who want to acquire farm implements or equipment and agricultural facilities.

• BUSINESS LOANSFor small and medium enterprises.

• MULTI-PURPOSE LOANFor non-productive purposes like house repair, medical expenses, educational expenses, acquisition of appliances, placement fees for abroad, and pawning of jewelry.

* EMERGENCY LOANFor emergency expenses.

Amount: 5,000.00Interest: 2%Service Fee: 3%Term: One (1)month only

ELIGIBILITY TO BORROW:

o Share Capital must be at least 10% of amount applied. Ex. Amount applied: 50,000.00

10%:5,000.00o (The borrower must have a share capital of 5,000.00 to be able to apply for

a loan of 50,000.00. If the share capital is deficient, the borrower must complete the needed amount or it may be deducted from the loan proceeds.)

o Loan amount: based on need

Terms: based on loan size and capacity to pay Mode of payment: Amortized, Office Payment, Field Collection Interest Rate:

Clean Loans 24%Partially Secured 22%Fully Secured 20%

Other charges:Service Fee Term

3% 100 days and below5% More than 100 days

Loan Redemption

1.75 per thousand per monthLoan Retention:

Share Capital 3%Savings Deposit 2%

55

III. OTHER SERVICES Cooprints

Coop Bazaar

56

Coop Events

Western Union

SSS

E-ticketing

- It is a web-based airline booking/ticketing system offered for all members

57

Saranay Program Members have to maintain a Saranay Savings. Members must actively participate in the Capital Build-up. Members not participating in the Capital Build-up will be disqualified

from the saranay benefits. Members’ contribution = 500.00 per year Requirement for payment: Death Certificate Member must identify the beneficiaries to who the benefit will be paid. Prime savers are included in the program Age limit: 70 years old Service charge: 2% For new members 61 to 70 years old, the Share Capital must be

5,000.00 to qualify in the program.

Amount of Benefit:

No. of years as member Amount of benefit0 – 30 days 10,000.0031 days - 3 years 50,000.003 yrs. & 1 day - 6 yrs. 80,000.006 yrs. & 1 day - 9 yrs. 110,000.009 yrs. & 1 day- 12 yrs. 140,000.0012 yrs.& 1 day - 15 yrs. 170,000.0015 years and above 250,000.00

COOPERATIVE HEALTH CARE PROGRAMo Provides unlimited medical check-up, laboratory services and

Unlimited Diagnostic Procedures (X-ray, Ultrasound, ECG) with the maximum hospitalization allowance of 15,000.00 per year plus up to 10,000.00 surgery allowance per year.

o Membership Fee: P1,800.00/year

o Beneficiaries:

Married – ( Spouse and Children )Single – ( Parents )

o FARMERS ENTREPRENEURSHIP PROGRAM

o A collaborative project of National Livelihood Development Corporation, Catholic Relief Services and Jollibee Group Foundation implemented to the local community through a Microfinance Institution, academe and local government unit which aims to organize small farmers into agro-enterprise clusters for the

o purpose of consolidating supply and pooling transport logistics; assist farmers to engage in value-adding activities in order to enhance their

58

compliance of quality requirements; and to increase the income of farmers towards food security and sustainable growth.

o Site: Tagudin, Ilocos Suro Products: Calamansi and White onionso Client: Memberso Organization: Tagudin Agro entrepreneurs Association, Inc.

COFFEE PRODUCTION, TECHNOLOGY AND MARKETING PROJECTo Aims to increase the income of interested and committed small farmers

through coffee agro enterprise development.o Coffee Type: Arabica Typicao Initial Area: 100 hectareso Area for Expansion: 500 hectareso Site: Sigay, Ilocos Sur and neighboring high-leveled towns (San Emilio,

Del Pilar, Lidlidda, Alilem, Suyo, Salcedo, Galimuyod, etc)

o At present:

Intensified monitoring of the project at Galimuyod, Candon, San Emilio and Tagudin branches by the technical officers

Found out that coffee trees in Sigay, Del Pilar Suyo and Alilem, Ilocos Sur and Santol, La Union are now on its flowering and fruit-bearing stage

350 farmers enrolled 436.5 has. planted with coffee 872,500 coffee seedlings distributed

59

AFLATOUN YOUTH SAVINGS PROGRAM

As an offshoot to the creation of a Laboratory Coop for the youth members of Sacred Heart Savings Cooperative, the year saw the launching of the Aflatoun youth Savings Program which aims to provide an educational program of balanced social and financial education for children, which are brought into the sphere of formal education. The program is in partnership with the Natcco Network and the Department of Education (DepEd). It provides children access to child-friendly savings account through school-wide savings program managed by the Cooperative. Initially, the program is being piloted in 6 schools in Ilocos Sur: Salcedo National High School, Candon National High School, Galimuyod Central School, Tagudin National High School, Candon South Central School, and Quinarayan Elementary School.

The success of every endeavour lies in the hands of its constituents. Thus, the success of the Child Social and Financial Education Program known as the Aflatoun Program lies in the concerted effort and support of the people it and will be serving, especially the young people.

As of August 31, 2015, there is a total of 5,795 youth enrolled in this program and have generated a total of PhP 4,874,501.28 savings and PhP 1,079,278.18 share capital.

60

Most Outstanding Community Enterprise Awardee(2015 Villar SIPAG Awards)

December 11,2015 - The Villar Foundation through its Social Institute for Poverty Alleviation and Governance awarded the Most Outstanding and Most Promising Community Enterprises held in Las Piñas City, Metro Manila.

As a result of the annual nationwide search for organizations and community enterprises which are pillars of good practices in poverty reduction through job creation, livelihood  programs, social progress and many others, 20 Most Outstanding and 20 Most Promising Community Enterprises were recipients of the coveted award.

More than 300 applied for the awards but only 20 were selected based on effectiveness, significance, financial viability, sustainability and adaptability.

Winning cooperatives were awarded a plaque and Php 250,000.00 by former Senate president Manny Villar, Sen. Cynthia Villar and Las Piñas Re. Mark Villar in a ceremony at Villar SIPAG, PulangLupa I, LasPiñas. The amount can be used by the community enterprise to start a new business or expand their existing community-based projects.

The Villar SIPAG Awards for Poverty Reduction, launched in August 2013 recognizes the exemplary achievements of community enterprises that resulted in economic development and livelihood improvement of the people

61

SHSC Hog Breeding Mega Farm: On Agribusiness and Ecological Responsibility

In a country like the Philippines where there is high pork consumption, the hog farming business will always be feasible--will always have clients. Globally, pork is the most popular meat. Recent USDA FAS data shows that pork consumption in recorded Asian countries such as the Philippines account for no less than 59% of the world total.

The SHSC Hog Breeding Farm is a 300-sow level facility located in a 2.1-hectare property in Barangay Daldagan, Galimuyod, Ilocos Sur. After completion, the project will include 2-unit gestating area (for breeding), 3-unit farrowing area (for pregnant sows), 3-growers and finishers), 1-unit quarantine-marketing building (for hogs ready for sale and distribution), 1-unit warehouse for storage and 1-unit farm Admin office. A laboratory for efficient semen storage is also in usage by now.

The development of the area started last April 2015 and construction continues. The cooperative is eyeing August 2016 as the project completion date. On October 2015, 150 gilts were delivered, half of the over-all total, from PIC (Pig Improvement Company). As of today, the farm now houses 300 gilts/sows and 6 boars.

Doing the Right Thing. Within the facility, a Biogas Digester/Methane Recovery System was installed to ensure sanitation and proper management of wastewater of piggeries. The system usually uses open anaerobic systems in which GHG emissions of the piggery are captured, flared and/or used in power generation.

“…to promote clean technology and investments in climate change mitigation…”

The Biogas project is under the LANDBANK’s Carbon Finance Support Facility (CFSF) in partnership with the Environmental Program & Management Department (EPMD) of the Land Bank of the Philippines. CFSF is a voluntary initiative to promote clean technology and investments in climate change mitigation through the Clean Development Mechanism (CDM) Program of the United Nations Framework Convention on Climate Change (UNFCCC). With assured carbon buyers, LBP will coordinate and manage the selling of the carbon credits on behalf of SHSC through the World Bank and Swedish Energy Agency. In effect, the carbon buyer-nations will use the Certified

62

Emission Reductions (CERs) to meet their emission reduction targets agreed among participating countries under the Kyoto Protocol, an international treaty that calls upon the reduction of greenhouse gases which causes the dreaded phenomenon--Global Warming.

HOG DISPERSAL PROGRAM.A new loan program has been developed to realize the cause of the Hog Breeding Farm. Piglets produced in the coop piggery will be distributed to members willing and able to comply with apposite guidelines as required by the cooperative. Interested Hog Raisers should conform to all necessary parameters with the assistance of the cooperative through its Technical Officers.

*Dispersal of Piglets, Feeds and Medicines45-day old piglets, starter feeds and grower feeds will be distributed to the raiser-member. Farm inputs will be picked up from the SHSC Piggery Farm.*Skills Training, Technical assistance and MarketingThe coop will conduct trainings for the members who are under the said loan

scheme.To ensure that the piglets dispersed will attain the target weight and will produce a quality carcass, technical officers will intensify their evaluation and monitoring of the piglets.For three months, hog raising members will take care of the piglets. The raiser should produce a minimum of ninety-five kilograms per fattened hog. It shall be purchased by the cooperative with the prevailing market price of hogs and picked up from the raiser’s farm.*Input RequirementsRaiser should be a cooperative’s member.The raiser should be committed and dedicated.The raiser will be required to construct an all-weather pig sty/housing and to conform in the technology of the cooperative’s piggery farm.The raiser is required to attend trainings conducted by the cooperative.

The project is a testament of SHSC in its loud call for the advancement of agriculture, commerce and countryside development which focuses on bringing collaborative efforts of the cooperative, its members, LGUs, funders and stakeholders in tapping the latest technology and methodology for the benefit and welfare of its 35,000-strong membership.

FARMERS TO ENTREPRENEURS

63

Filipinos are farmers. Philippine agriculture has been alongside with our colorful history since time immemorial. Many of those who fought the conquerors for our freedom were farmers and land tillers. Agriculture continues to be the main source of livelihood for many of our kababayans.

The variety of crops cultivated by our Filipino farmers range from rice, corn, peanut, tobacco and vegetables like eggplant, tomato and onions. Today, our small time farmers are (still) yet on a battle--this time, “cold war” against massive capitalism, soaring commodity prices and issues in the agricultural reform.

MOA Signing Between SHSC and MACNUTS PHIL, Inc

Sacred Heart Savings Cooperative has been reaching out to empower farmers since its inception. Majority, if not all, of its founding cooperators were farmers. Aside from offering microfinance loans to majority of its members, several programs of the coop are aligned on helping out and easing out the difficult plight of its farmer-members. The SHSC Farmers Entrepreneurship Program, (now renamed as Coop Initiative Program on Agro-Enterprise under the SHSC Business Development support services) was launched in April 2013. The CIPAG is an expansion to direct efforts to provide assistance and ensure the viability and profitability of the farm harvest. CIPAG is currently pioneered in the towns of Salcedo and Galimuyod, Ilocos sur. SHSC exerts efforts by partnering with large organizations (Jollibee Foods and Mama Sita’s for example) as institutional buyers of the various products of its members.

In 2013, SHSC started to scout potential Arabica coffee growers in the mountainous areas of Ilocos Sur and Abra to date, 500 hectares have been planted with Arabica coffee and in near time, harvesting is anticipated. These coffee produce are bound for local and international markets which SHSC was able to have deal with prior to the program launch.

64

Farmer-members of SHSC are now entrepreneurs. With its Arabica coffee production program, SHSC has proven itself as a competitive trendsetter in the cooperative movement —a pioneer! The coop lives up to its tagline “Building Lives…” it builds opportunities as it widens its business horizon to cater the growing needs of its members. SHSC will continue to help out the marginalized to stand and be empowered.

Profile of SHSC taken from the CDA-DEO database FY 2014

SHSC cooperative is located at Poblacion, Galimuyod, registered on December 7, 2009. The cooperative is engaged in lending, trading and services with seven Board of Directors, 245 staff catering to 17 branches with 20,929 regular members. For their financial performance, they have a total assets of P 1,008,283,208, Net worth P 148,602,113.76, Volume of Business of P 326,166,225.28, Gross Revenue P 68,199,305.00 and Net Surplus of P 9,335,795.00

65

The Story of BagnosMulti Purpose CooperativeName of Cooperative : BAGNOS MULTI-PURPOSE COOPERATIVEAddress : Binacag, Banna, Ilocos Norte

Cooperative Profile

The : Bagnos Multipurpose Cooperative is located at Brgy. Binacag, Banna, Ilocos Norte c. Contact/Tel. Nos. : 09198708177 / 09275222985, Organized on September 3, 2000, date registered Dec. 21, 2000 with Tax Identification Number : 005-512-730. The cooperative is engaged in lending, trading, production with 26 staff and five member Board of Directors. For its financial performance FY 2014, it has a Total Assets of P11, 456,136, Net worth of P 8,243,389, Volume of Business P 15,99,196, Gross Revenue P 3,935,613 and Net Surplus P 817,888,753 (CDA-DEO, 2016)

I. Brief History/Background of Cooperative

Binacag is located at the southern part of Banna, Ilocos Norte. Bounded from the north by Brgy. Imelda, and from the east by Brgy. Bonito 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 barrage 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

66

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. Name Organization/s Providing Assistance:

Bagnos MPC benefitted from the various echnical and financial assistance from National and Local Government as well as private partners: Department of Agrarian Reform, Department of Agriculture, Department. of Labor & Employment, Department . of Trade & Industry, LGU-Banna, Land Bank of the Philippines, National Food Authority, Cooperative Development Authority, Provincial. Government of Ilocos Norte, Philippine Crop Insurance Corp., CARD Inc., Department of Science and Technology

III. Success Factors of Bagnos Multi-Purpose Cooperative

Members 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

IV. 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

67

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.

V. Awards Received

2003 Most Progressive ARB Organization, Regional Winner Kanayunang Kabuhayan Award, DOLE

2010 National Level 1st Runner Up Best Beverage Award

2011 National Level Gawad Saka DA; Regional Winner Gawad Pitak, Regional Contender Volume Sales-Platinum Award CJ Phils. Ilocos Norte Outstanding Cooperative

2012 Regional Top Performing Cooperative

2014 Ilocos Norte Gawad Saka

2015 Regional Winner and National Finalist Best Livelihood Project DOLE Regional Winner and National Finalist

VI. Services Offered

The cooperative offers the following services, 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 and goat raising, coffee production, butchering and meat processing, micro finance provider and micro insurance.

Consumer store

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

68

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

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.

Rice Coffee Production

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.

69

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”.

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. Roasting Machine 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. Balikbayans 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.

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. 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.

70

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.. A dream for a coop warehouse came true. This is an inspiration to goad on for more.

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.

Goat Raising

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.

Butchering cum 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 two coop butchers as they are about to transport the hog into the slaughter house. 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.

71

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. 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.

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.

Training and Seminars

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

72

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..

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.

73

Bayanihan Hundred Islands Agrarian Reform Cooperative

The cooperative was organized in response to the program of the Department of Agrarian Reform (DAR) to organize a cooperative with Agrarian Reform Beneficiaries as members within the Agrarian Reform Community (ARC). The office is located at Palamis Alaminos City, Pangasinan. The Bayanihan, composing of ten (10) clustered barangays will then be the recipient of all programs and projects.

With the initiative of the seven (7) founding directors headed by Ms. Lewisite Raring, the Chairman and 15Cooperators with paid-up Share Capital of fifteen thousand pesos (P15,000.00), the cooperative was registered with the Cooperative Development Authority(CDA) last October 28, 2002. 

The cooperative started its lending business in the year 2003 with five (5) borrowers who are regularly paying their monthly amortization. The same year, the Department of Agrarian Reform (DAR) launched the DAR-ADB farm to market road project in Baraga Tangcarang, Macatiw and Limansangan as the recipient of the said project and the BHIARC as the subject organization who will benefited from the 10% rural infrastructures scheme of the project amounting to P70.000.00. Five thousand pesos was used for the meat processing. The PARMPC joined several local trade fairs to promote their longanisa business.

DAR interventions was given to the Coop such as the Duck Raising, Balut Production, Tenaha Nation as ARC Project (TNAP) and the ongoing ARISP III with 5 components such as 1) Agriculture and Agri-business Development Certified Inbred Rice Production with 20 ARB cooperators 2) FMR-Linmansangan, Balangobong and Bisocol 3) Irrigation-Alos Paed and the AlosConconig4) Post Harvest Facilities- to be implemented this October and 5) the MICOOP Program (Microfinance Intervention in Cooperatives) under the DAR/NATCCO Partnership.

In the General Assembly of April 28, 2012 members unanimously approved the proposed amendment of Cooperative name as Bayanihan Hundred Islands Agrarian Reform Cooperative. The Bayanihan Hundred Islands Agrarian Reform Cooperative, a primary cooperative duly organized and existing under the Philippine Cooperative Code of 2008 (RA9520), with address at L. Rivera Sr. St. Poblacion Alaminos City, Pangasinan. At that time, PARMPC became inactive. Members stopped paying their loans. But despite of all obstacles, members did not give up on keeping in force. The BHIARC signed a partnership contract between National Confederation of Cooperatives, a cooperative federation duly organized and existing under the Cooperative Code of the Philippines with the recommendation of the Department of Agrarian Reform last June 15, 2013 that will provide Microfinance Innovations in Cooperative Program (MICOOP Program) to the Cooperative. Wherein DAR and

74

NATCCO partnership has embarked on a project called MICOOP@ARAs Expansion Project (MICARAS II) which provide financial services to ARBs and Non ARBs in Agrarian Reform Areas. The officers decided to hire Manager, Bookkeeper, Loans Officer and Development officer to continue the business.

The Bayanihan Hundred Islands Agrarian Reform Cooperative re-launched its grand opening last October 11, 2013 and expand area of operation in the 1 st District of Pangasinan. The cooperative vision is “A strong prosperous cooperative headed by caring innovative industrious and relentless leaders with unified members with sole purpose is to improve the livelihood of the community” and mission is “to provide quality products and services that tends to the needs of its member and open to new innovation which are necessary to improve its capital and member”. The core values of the Cooperative is “In God, we serve our clients, in services, we seek our excellence, in strength, we pay attention to socio-economic dividends. In competence, we care for our people.

The cooperative has new products and services: Savings, Loan and Damayan Insurance.

o SAVINGS Regular Savings

-100-initial savings-500-maintaining balance-750-to earn interest-withdrawable anytime (Monday to Friday, 8:00 am-4:00 pm; Saturday, 8:00 am- 12:00nn)-3% interest rate, quarterly posting of interest.

Youth Education Savers Club (YES! Club) – Kiddie Savers Deposit-17 and below-50 initial deposit with free passbook

75

-500 maintaining balance and to earn interest-it can only be withdrawn on his/her Birthday, Christmas, Enrollment and End of School Year.-3% interest rate per annum, quarterly posting of interest.

Term Deposit

PRINCIPAL90 DAYS 180 DAYS 360 DAYS

1500-10,000 4.00% 4.25% 4.50% 10,001-50,000 4.25% 4.50% 4.75% 50,001-100,000 4.50% 4.75% 5.00% 100,001-200,000 4.75% 5.00% 5.25% 200,001-300,000 5.00% 5.25% 5.50% 300,001-500,000 5.25% 5.50% 5.75%500,001-1,000,000 6.00% 6.25% 6.50%1,000,001 - 2,000,000 6.75% 7.00% 7.25%2,000,001-10,000,000 7% 7.25% 8.00%

Terms and Conditions:1. Interest is paid monthly or upon maturity.2. Maturity advice is sent a week before the date of maturity.3. It can only be withdrawn at the end of the period.4. In case of pre-termination, 30 days written notice is required.5. Regular savings interest rate shall apply in case of pre-termination.

o Wealth Building Loanso

Regular Loan-Agri loan-3% interest rate-Non Agri loan-2.5% interest rate

Microfinance Loan-3.33% interest rate-Agri Loan-Non-Agri Loan

Back-to-back Loan- also known as “Discipline loan”-1% interest rate

76

o Damayan Insurance-Membership is 18- 65 years old-premium amounting to four hundred pesos (P400.00)-Covered for 6 months-Maximum of four dependents

• Natural Death– Member 45,000.00– Plus Abuloyan 2,000.00– Dependents 15,000.00 (each)

• Accident– Member 90,000.00– Plus Abuloyan 2,000.00– Dependents 15,000.00 (each)

Cooperative was awarded as Natatanging Kooperatiba in the Cooperative Month celebration held last October 25, 2014 and Most Outstanding Cooperative for exemplary performance in achieving development of the members and as active partners of the Local Government Unit of the City of the Alaminos last March 22, 2015.

The cooperative participate Brigada Eskwela in San Vicente Elementary School, conduct Seminar/ Training on Organic fertilizer production for members and School Gardening in Palamis Elementary School.

At present, Bayanihan Hundred Islands Agrarian Reform Cooperative has grown total membership of more than 1,400 and capitalization of over two million five hundred thousand pesos. The cooperative don’t succeed at first, but we never stop trying. With the perseverance and commitment of the staff, Board of Directors, officers and members, Bayanihan hundred Islands Agrarian Reform Cooperative will continue to provide good services to its member and contribute to sustainable development of the community.

77