Governor Ann K. Hofer presents the business plan for Zamboanga Sibugay’s proposed P300-million Rubber Consolidation, Processing and Marketing Enterprise to Agriculture Secretary Francis Tiu-Laurel. (Image courtesy of Sibug Ngari Bagay)
IPIL, Zamboanga Sibugay — Zamboanga Sibugay is moving to give its rubber industry a major upgrade, with the provincial government pitching a P300-million processing enterprise designed to take farmers beyond selling raw rubber.
Key Takeaways
- P300 million rubber enterprise: Zamboanga Sibugay is proposing a major rubber consolidation, processing and marketing facility in Tungawan.
- 1,200 farmers to benefit: The project is expected to source rubber from about 1,200 farmers in Zamboanga Sibugay and Zamboanga del Norte.
- From raw rubber to SPR 20: The facility will process raw rubber into Standard Philippine Rubber (SPR) 20, a widely used industrial material.
- 3,200 tons in first year: The enterprise targets processing at least 3,200 tons of raw rubber annually at the start of operations.
- P67 million projected income: The business plan estimates annual net income of about P67 million.
- TIMARBENCO moves up the value chain: The cooperative would shift from supplying raw materials to processing and marketing a higher-value product.
- Potential downstream industries: The province hopes stronger processing capacity will help attract rubber manufacturers and other related businesses.
- Mega hatchery also proposed: The provincial government and Department of Agriculture are also pursuing a Mega Hatchery Center to strengthen fisheries and aquaculture.
Governor Ann K. Hofer personally presented Agriculture Secretary Francis Tiu-Laurel with the complete business plan package for the proposed Rubber Consolidation, Processing and Marketing Enterprise, which will be established in Tungawan in partnership with the Timbabuan Agrarian Reform Beneficiaries Cooperative (TIMARBENCO).
The proposal includes a feasibility study and financial analysis for a facility that would consolidate rubber from farmers in Zamboanga Sibugay and neighboring Zamboanga del Norte before processing it into Standard Philippine Rubber (SPR) 20.
SPR 20 is a semi-processed rubber block used in products ranging from general-purpose rubber goods and heavy-duty mats to anti-shock cushioning and railway pads.
Hofer was accompanied by Provincial Administrator and Provincial Project Management and Implementation Unit head Atty. Jay Millena and Provincial Agriculturist Engr. Wesley Sayson. Laurel was joined by Philippine Rubber Research Institute Executive Director Cheryl Eusala.
P300-million processing venture
The proposed enterprise will include a rubber processing center, warehouse and other support facilities, with a modern processing line capable of turning consolidated raw rubber into a higher-value industrial product.
The project is expected to serve about 1,200 rubber farmers from the two Zamboanga provinces.
Its first-year target is to consolidate and process at least 3,200 tons of raw rubber, producing about 2,000 tons of SPR 20.
The business plan projects annual net income of around P67 million once the enterprise is operating at its planned capacity.
For the provincial government, however, the bigger prize is not simply the projected income.
The project is intended to change TIMARBENCO’s role from a cooperative supplying raw materials into one that also processes and markets a finished semi-processed product.
That could give farmers a more stable outlet for their rubber while allowing a greater share of the value created by processing to remain within the province.
From raw rubber to industry
The proposed facility is also being positioned as a potential starting point for developing downstream rubber industries in Zamboanga Sibugay.
Instead of shipping out mostly raw rubber, the province hopes to build the processing capacity needed to attract manufacturers and other businesses that use rubber as an industrial input.
The plan comes as the province seeks to strengthen agriculture by moving beyond production alone and into processing, marketing and other stages of the value chain.
The proposed Tungawan enterprise would therefore put the cooperative and its farmer-members closer to the industrial end of the rubber business.
Mega hatchery also on the table
Hofer’s meeting with Laurel also covered another major agricultural project — the proposed Mega Hatchery Center in Zamboanga Sibugay.
The facility is being pursued by the Department of Agriculture in partnership with the provincial government as part of efforts to expand the province’s fisheries and aquaculture sector.
The hatchery proposal was also discussed with Bureau of Fisheries and Aquatic Resources National Director Elizer Salilig.
Together, the rubber processing venture and proposed hatchery reflect the provincial government’s push to build more processing and production capacity around two of Zamboanga Sibugay’s major rural economic sectors.
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