ACCESS to financing is a way forward for every farmer.
In support to the newly-formed Philippine Cacao Industry Development Council (PCIDC) push for more investments poured in agriculture especially on cacao as a fast-rising global champion crop, the Small Business Corp. (SBC) is eyeing to earmarked about P10 million as venture capital for cacao producers.
SBC is an attached agency of the Department of Trade and Industry, which is now the leader in small enterprise development financing and small credit delivery systems nationwide.
Recognizing that access to financing is every small farmer’s concern, the group is now looking for a partner for the venture capital scheme.
“We have fund to support businessmen usually those not catered by the banks,” said Bartholomew Brillo Reynes, president and chief executive officer of SBC.
On the venture capital scheme, Reynes said, the partner could be any companies like Malagos chocolate and other enterprises that are into the production and processing of the crop.
Reynes said that they are willing to put that common fund or common equity.
The scheme, Reynes explained, is different from loans as the growers do not need to pay regularly.
The proposed venture capital for cacao growers is set to be formally presented to the SBC Board this year.
Reynes added that what’s good with SBC is that they require minimum documentation and maintain harmonious relationship with their clients.
The office of SBC-Davao located in LandCo, Bajada Davao City, where small farmers, entrepreneurs can go and ask assistance on access in financing.
Valente “Val” Turtur, chair of the PCIDC, for his part said access to financing is important so the growers will have sufficient funding to augment their production, the industry’s major setback.
Under the harmonized cacao industry roadmap, the industry players set a target to attain 100,000 metric tons of cacao production by 2022.
The council, he said, is primarily focusing on boosting the production and sustaining the quality of Philippine cacao.
Simmon Bakker, president and chief executive officer of Kennemer Food Inc., also said that working capital, establishment of loans, crop insurance and guarantee systems should be present to secure access to financing. (ASP)