DAVAO CITY - The project’s Regional Coordinating Unit (RCU) 11 spearheaded the RAPID Regional Agri-Based Value Chain Financing Forum and Launching of the Compendium of Financial Products for Agri-Based Value Chain Stakeholders on December 9, 2022, in Davao City.

  

This aims to connect the project proponents and other relevant value chain stakeholders to different government and private financing institutions. Likewise, this is seen to address the project's weakness in the financing aspect, which is crucial for the success of the value chain upscaling models of the supply chains, as outlined in the approved Detailed Investments Plans (DIPs).

  

DTI-Davao del Norte Provincial Director Romeo L. Castañaga shared that the forum focused on the importance of value chain-based financing to improve both business efficiency and competitiveness.

  

“This was designed for those proponents who have financing and/or matching grant counterpart needs and inputs in their farm production,” said Castañaga, who also sits as the regional head of the project.

  

The participating government financial institutions (GFIs) were the Development Bank of the Philippines and the Land Bank of the Philippines. Meanwhile, the Bank of Commerce, China Bank, Bank of Philippine Islands, and Sta. Ana Multipurpose Cooperative represented the private sector.

The invited banks discussed their financing options as well as their efforts to streamline their lending procedures to better serve the needs of smaller borrowers. To ensure that financing assistance is provided to qualified potential borrowers, the DTI-RAPID Growth Project may assist in organizing a convergence group of government financial institutions and private banks. More credit facilities may be made available to suitable borrowers as more banks become aware of the project.

  

Castañaga emphasized the importance of understanding the right kind of financing for agricultural endeavors and the benefits it can bring to the identified farmer organization beneficiaries that are rehabilitating and expanding their respective farms.

  

The DTI-RAPID Growth Project is promoting the inclusiveness of its activities in making farmer organizations part of the agricultural supply chains. The gaps within the agricultural supply chains needed to be addressed starting with the most appropriate financing programs. These can help financial institutions in addressing lending risk concerns among smaller farmers.

  

“Participating in the network of agricultural supply chains has other definite advantages for farmer organizations, such as the opportunity to get bulk discounts on farm inputs from anchor firms. For farmers to become more competitive, this eventually leads to decreased input costs (or expenses),” a local trade official noted.

    

Recently, the project completed a survey on Mindanao MSMEs' access to financial services for a major international financial institution. Following this survey, a compendium of financial products that details its terms and requirements will be provided, allowing farmers' organizations and MSMEs a variety of financing options. This shall be distributed to the RAPID-assisted farmers and other relevant value chain and project stakeholders.