National Tobacco Administration Accomplishments (as inputs to the SONA) July 2010-2011 PROGRAMS/PROJECTS MFOs/Indicators Market-Driven Quality Tobacco

Production and Integrated Farming and Other Income Generating Activities Project (IFOIGAP) 1. Tobacco Contract Growing System Total Budget: 2011 = PhP131 M; 2012 =PhP175 M Fund Source: SAGF 151 (RA 4155) & Corporate Funds Target 2012 Innovations done to improve the way DA performs its functions

ADVANCE COPY

Acccomplish Acccomplishment ment (To date)

Outcomes/Results

Market-oriented, technology Addresses domestic manufacturing based intervention; direct tie- and export requirement up between principal tobacco firms and tobacco farmers. 3,000 1,000 150,000,000 9,746 6,531 34,197,814 (NTA) 136,012,785 (BFs, LGUs, etc.) 3,849 2,685 89,486,987 Lowering of interest rates of (NTA) production assistance and LGUs co-implemented with the project by providing counterpart funds

No. of farmer cooperators Status: Ongoing/Continuing Area (hectares) Brief Description: TCGS is a market-oriented production system that assures the tobacco manufacturers and exporters of the volume and quality of tobacco they need; and, at the same time, assures the farmers of the technology, production assistance, technical assistance from seedbedding to delivery of produce, ready market, proper grading, accurate weighing and better prices for their produce, including incentives for good performance, like production quota, 100% delivery, prompt repayment and high nicotine, among others. Volume of production (mt) Value of production (Php, B)

NTAs assisted tobacco farmers and total area coverage increased by 32% and 26%, respectively, from 2010s 7,408 farmers and 5,199 hectares to 9,746 tobacco farmers and 6,531 hectares at present

75,000 5.000

79,176 5.264

6,540
0.450 (Partial data only) Wil provide incentives to Production assistance extended increased by 35% in 2011, to Php 170 million compared with 2010's years PhP 126 million, which were provided by NTA, Tobacco Companies and LGUs. An evidence of public-private partnerships, the Private Sector, GFIs and LGUs constitute about 80% of the total production assistance. This is expected to increase by more than PhP 200 million by the end of 2012.

farmer-cooperators who will meet certain criteria for 2012 and conduct a Search for Outstanding Tobacco Farmers

Total production/acceptances for 2011 increased by 7.33% at 79.176 million kilos, from 2010s production of 73.767 million kilos valued at PhP5.264 billion. Documentation for the 2011-2012 tobacco season is still on-going

July 2010-2011 PROGRAMS/PROJECTS MFOs/Indicators 2. Multi-purpose Curing Barn cum Grain Dryer Project No. of farmer cooperators Total Budget: 2011 = Php100 M No. of units distributed 2012 =PhP103 M Fund Source: SAGF 151 (RA4155) Status: Completed (2010-2011) The MPCB is a facility assistance intended to make Virginia tobacco fluecuring more efficient to enhance quality and reduce losses in the drying of rice (in the streets), which is estimated at 5%. 3. IFOIGAP Other Components- Rice Production Project No. of farmer cooperators Total Budget: 2011 = Php20 M Area (hectares) 2012 =PhP30 M Fund Source: SAGF 151 (RA4155) Status: Continuing As an IFOIGAP component, this was implemented in line with the rice self sufficiency program of the government led by the DA, to augment the income of tobacco farmers, by increasing their yield to at least 5 tons/hectare. Target 10,000 1,000

2012 Innovations done to improve the way DA performs its functions

Acccomplish Acccomplishment ment (To date) 10,320 1,032

Outcomes/Results

Innovation in support of food More efficient use of barn for fluecuring; reduction of post-harvest security (drying of grains); losses for rice and other grains 1,680 1,428 1,480 1,261

For CY 2011, NTA assisted 1,480 tobacco farmers, covering 1,261 hectares, a 79% increase from the previous years 825 farmer cooperators and 704 hectares. Total Production Assistance increased by 120% at PhP17.70 million from 2010s PhP8.04 million.

4. Tobacco Seed Production and Distribution Total Budget: 2011 = Php 5 M Seed distribution (kg) 2012 =PhP 7 M No. of farmer beneficiaries Fund Source: CorporateFunds Status: Ongoing/Continuing The NTA makes available market-preferred, quality seed varieties to tobacco farmers and tobacco companies, to replace the many, old, degenerated varieties the farmers are using. This is intended to enhance global competitiveness, by ensuring consistency in the volume and quality, of leaf tobacco, as required by local cigar/cigarette manufacturers and exporters. 5. AGRIPINOY Tobacco Farmers Trading and Food Processing Center Total Budget: 2012 = Php165 M Fund Source: SAGF 151 (RA4155) Status: Land Devt. On-going Similar to the Agri-Pinoy Food Trading Center of the Dept. of Agriculture, No. of Processing plants established No of Trading centers established

260 10,400

154 8,800

Seed Production still ongoing Introduction of markeIncreased yield of improved quality preferred varieties to replace tobacco, to improve old degenerated seeds. marketability/exportability of leaf and income of farmer.

1 1

Comprehensive production

Increased income and food security

July 2010-2011 PROGRAMS/PROJECTS MFOs/Indicators as a priority investment program under the Aquino Administration, the AFTFP shall serve as a direct marketing arm/facility that will include integrated agricultural services, incl. food processing, and feedmill operations. Prod. assistance will be provided to tobacco farmers the production of the raw materials, vegetables, fruits, hogs and poultry which it will buy, process and sell to government offices, govt. hospitals food terminals/ bagsakan centers, with the assistance of the DA-AMAS in Region 1 and Metro Manila. 6. Farmers Organizational Development Total Budget: 2011 = Php 0.5 M 2012 =PhP 0.5 M Fund Source: CorporateFunds Status: Ongoing/Continuing From being traditional recipients of governments assistance, this program aims towards nurturing the tobacco farmers to become truly self-reliant, selfsufficient and food secured. Through the formation of honestto-goodness tobacco-based cooperatives, the tobacco farmers will be given the opportunity to develop technical, leadership, entrepreneurial and management capabilities alongside, financial capability development Target

2012 Innovations done to improve the way DA performs its functions and market intervention for the farmers

Acccomplish Acccomplishment ment (To date)

Outcomes/Results

No. of Fcs trained No. of Coops asssisted

10,000 50

9,000 52

52 For farmers to become active partners in development Increased self-reliance, financial viability and food security

7. Communication Support Program and External Linkages Total Budget: 2011 = Php 0.5 M 2012 =PhP 0.5 M Fund Source: CorporateFunds Status: Ongoing/Continuing To increase the governments presence, the NTA has adopted a more proactive stance, in its interventions / introduction of necessary changes for a more sustainable development of the industry

No. of training materials/ technoguides distributed No. of newsletters No. of radio/tv programs No. of press releases

10,000 350 2 8

9,000 350 2 32

2 Introduced the Values Reorientation Program cum Good Agriculture Practices (GAP) seminars, for a technology oriented and more responsible farmers

July 2010-2011 PROGRAMS/PROJECTS MFOs/Indicators Target

2012 Innovations done to improve the way DA performs its functions Conducted continuing active consultation with the tobacco private sector and tobacco farmers groups on matters affecting the local tobacco industry, amidst the global campaign against tobacco and smoking, including the legislative agenda in both houses of congress;

Acccomplish Acccomplishment ment (To date)

Outcomes/Results More active/responsive collaboration with industry stakeholders; Government's presence felt by clients including rural communities; More positive image of govt. and its programs; More active support from the clients

8. Scholarship Program for Children of Tobacco Farmers No. of scholars Total Budget: 2011 = Php 1 M 2012 =PhP 2 M Fund Source: CorporateFunds Status: Ongoing/Continuing For the first time, the NTA launched a scholarship program for tobacco farmers children, pursuant to RA 9211, Tobacco Free Education Program (TFEP) and in affirmation to the Administrations thrust of giving priority to the primary stakeholders of the industry, the tobacco farmers. As of date it has awarded financial assistance to the first batch of 138 scholars, enrolled in 4year and vocational/technical courses, in state colleges and universities in Regions I, II and CAR.

100

138

138

Scholarship program for tobacco farmers children

Additional benefits for tobacco farmers family

Prepared by:

Certified Correct:

Approved:

FORTUNA C. BENOSA Division Chief III, PPED-Corp. Planning Dept.

REX ANTONIO P. TEOXON Manager III, Corporate Planning Dept.

EDGARDO D. ZARAGOZA Administrator