THE Department of Agriculture (DA) has extended a loan of P15 million without interest for a mature tuna producer in General Santos City to upgrade its fishing fleet, officials said Friday.

The DA in Central Mindanao inked the loan agreement with JK Fish Trade, which is owned by Jeremy S. Kintanar, under the Agricultural Competitiveness Enhancement Fund (Acef).

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Kintanar said his company was able to avail of the loan by providing an equity of P10 million.

The entire fund will be used to make two additional hand-line tuna boats replete with 30 pakuras or smaller boats that hunt adult tuna stocks in the high seas, he said.

JK Fish currently operates two hand-line tuna boats, which employs the hook-and-line fishing method to capture large tuna usually marketed in fresh form to domestic and international markets.

Tommy A. Ala, acting regional Agriculture department director, said Acef is a funding facility that supports those whose livelihood depends on DA's primary sector, agriculture.

The fund seeks to enable farmers, fisherfolk, cooperatives and agribusiness entrepreneurs to compete in an extremely competitive and increasingly globalized agriculture market.

"It is a loan granted to any farmers, cooperatives and companies to finance their existing business with no collateral and no interest, which is payable in seven years," Ala said.

"It is intended to help farmers, cooperatives, and all other agricultural stakeholders increase their production and income, generate employment with their projects, and contribute to the growth of the economy," he added.

The Acef ended in 2005 but was extended for another two years, which ended on December 2007. It was again extended for another seven years that started last June 11, 2008 until year 2015.

Projects proposals for consideration under the fund include post harvest facilities, livestock and poultry, banana, fish, and other agricultural crops.

Ala said that Acef's extension "is crucial to the attainment of the goal of the Agriculture department to help small farmers move beyond primary agriculture and into value-added higher-earning enterprises, because it will mean additional resources for the farm sector until 2015."