April 1, 2010
From feed to hogs, SIDC cooperative makes business sense
An eFeedLink Exclusive
Designed to improve the lives of the countryside, cooperatives have been common entities in the Philippines. The country has more than a hundred registered cooperatives which have become significant contributors in improving the agribusiness sector.
Among the most prominent cooperatives is the Soro-Soro Ibaba Development Cooperative (SIDC) in Batangas City. Having more than 15,000 members, SIDC is known for its feedmilling, hog and meat processing businesses. As a prime mover of cooperative industry in the country and with more than 40 years of existence, SIDC now strives to become a globally
competitive and world-class cooperative to offer technologically advanced products and services, particularly to the
livestock industry.
A prime mover of Philippine cooperatives
SIDC was named after Barangay Soro-Soro, a small community docked in the eastern part of Batangas City. It was first established as Soro-Soro Ibaba Farmers'' Association on March 19, 1969 by 59 members headed by Victoriano E. Barte. These members voluntarily contributed PHP200 (US$4.41) each for a total capital of PHP11,800 (US$260.43) to construct a store in Barangay Soro-Soro - an upland area - due to difficulties in buying commodities in the town proper. With some members already into hog and
poultry raising, the then association also delved into the sale of affordable feeds and veterinary products. The first few years of operation have become successful and in 1972, it engaged into more livestock business such as contract growing of chickens and hogs. Under this project, the association provided the members with chicks, piglets, feeds, veterinary supplies and
technical services. On one hand, the member that avails of the contract will invest in utilities like water and other necessities to raise the animals. The association and the member share equally in the income and 50% of the cost of feeds and other veterinary products purchased were included in the computation of the members'' patronage refund allocation at the end of the year when the organisation gained profits.
Slowly gaining prominence, the association has attracted more members, increasing to 500 also in 1972. The number of members was deemed large enough to qualify as a cooperative and after a series of successful stints in livestock and poultry trading, SIDC was born in 1978.
Among their diverse businesses, SIDC is perhaps proudest in its new multi-million feedmill plant. Designed by leading engineers from Thailand with equipment imported from Europe, the new SIDC feedmill has eight floors producing 20 tonnes per hour, tripling the rate of current productions. Its old plant, constructed in 1987 with a current production capacity of 10 tonnes per hour will be upgraded. Eighty nine percent of the total feed production belongs to hogs, 10% poultry and 1% aqua. Ninety percent of its
corn raw materials are sourced locally while ten percent of soy is imported.
As one of the SIDC''s pioneer businesses, contract growing of hogs and poultry has become one of the members'' profitable agri-livelihoods. Members are now given the opportunity to raise a maximum of 90 heads of hog fatteners, 10 heads of breeders, 800 heads of broilers and three heads of cattle fatteners. Just like the old days, expenses related to growing piglets, chicks, feeds, veterinary supplies and technical assistance shall be shouldered by the cooperative and profits are equally shared by cooperative and its members.
Hog selling pen is among the most unique traits of SIDC. Unlike other cooperatives which have their members bring their hogs to the market, SIDC - though its sanitised trucks and hauling facilities - pick the hogs directly from the raisers in an attempt to ease the risk of diseases during travel. This way, buyers won''t have the hassle of purchasing the animals from far-flung farms and instead do the selection and haggling at SIDC''s hog pens. Assured of disease-free
pigs, buyers are also guaranteed of accurate weights with SIDC''s electronic weighing scales which precisely calculate the hog''s weight.
The cooperative also boasts of having artificial insemination services to its members. Qualified personnel, who are thoroughly trained in prestigious institutions here and abroad, are operating the SIDC''s AI centres which maintained high-grade boars. Previously, breeding would only take one boar and one sow per day and with AI procedures, ten breeders/sows will be inseminated with semen daily. The AI is also an attempt to respond to market demand of quality
pork such as lesser fat, but leaner meat.
Futher, it has a pig multiplier farm which aims to provide members quality piglets. Located at Barangay Dagatan, Taysan, Batangas, the SIDC Pig Farm is designed to accommodate 1,500 sows that will provide the cooperative at least 50,000 high quality piglets. Ninety percent of its hogs go to Manila while the ten percent is consumed in Batangas.
The cooperative was also awarded by the local government to operate the city''s main slaughterhouse. With an average of 150 hogs slaughtered daily, five to ten percent of SDIC''s pigs are butchered on the average.
In the last quarter of 2003, SIDC began processing local Filipino meats such as longganisa (pork sausage), ham, tocino (sweetened bacon) and many others. This venture aims to open more business opportunities for SIDC to use coop-produced hogs.
The coop''s strength lies in marketing its own product. Unlike other co-ops which have difficulty in selling their own produce, SIDC helps its members market its hogs, which on an average, sells 3,000 hogs per month. SIDC also offers higher prices of feeds and tilapia to coop-members compared to other haulers or viajeros (traders).
Indeed, SIDC is a fine example of a cooperative that works. It has become an epitome of a rural business which has exceeded expectations and worked its way out of its limitations. SIDC''s accomplishments have certainly transformed the farming''s perspective of a dirty job into one attractive enterprise.
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