A visit to the Philippines

“After an almost 3 hour ride from the city of Bacolod , in Negros Occidental, we reached the Mambugsay Essential Oil Producers Association (MEOPA) distillation plant in Cauayan. Entrepreneur Aladino Moraca and Auke Idzenga from the Philippine NGO Alternative Indigenous Development Foundation (AIDFI) were our gracious hosts. The final season distillation had been delayed a few days so we could see the plant in operation. We were impressed by the quality of the product and the farmers’ high level of involvement in the production process!

This poor upland farmers’ association was formed in 2004 by the AIDFI to provide its members with an alternative source of income. This lemon grass oil distillation plant delivers a high quality and easy to transport product, yearlong. The production is closely monitored and the farmers get additional knowledge on the best growing and harvesting practices for optimal oil yield. Their income has more than doubled and they are proud of their product. AIDFI has just assisted the farmers in creating water reservoirs to improve production during the dry season.

When asked about the main challenges faced, our hosts replied: "Marketing". ..." Production is still too small for the big bulk buyers. Because the oil is manufactured organically and fairly traded, it has a competitive edge in the niche market. The business is yet to capitalize on this. "Presently we are working on a marketing plan, together with a trainee from the Netherlands."

A third or even forth plant could increase the level of production to the amount needed to supply large international buyers. The business is opting to establish a current market first before expanding, making sure the farmers involved right now continue to receive a fair price.

And where did the BiD Challenge prize money go to? "The prize money from the BiD Challenge Philippines 2007 is being used to get national and international organic certification and developing a marketing strategy".

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