ninety (1,190) man-months employment ;
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1 2006 ANNUAL REPORT The DOST 7 s unified workforce as it conquers the odds leading the way to a globally competitive region thru advanced science and technology upholds its commitment of delivering total quality service. In respond to the government s refocused economic policies to support and sustain the growth of the manufacturing sector, the DOST provides substantial support relative to Micro Small and Medium Enterprises (MSMEs) need. Recognizing the critical role of MSMEs towards economic growth, the development of MSMEs paved the way to generate more employment, foreign exchange and stimulate growth and development particularly, in rural areas. Nevertheless, the DOST has the key role in assisting these MSMEs to expand domestic markets and penetrate non-traditional markets for sustained growth and competitiveness. For the past year the region with the support of its provincial S&T offices worked on to adhere on the present thrust of the nation s Science and Technology program bearing in mind the administration s commitment to uplift its people s quality of life. Technology diffusion being a vital tool to put in place the agency s priorities undertook the following activities: I. TECHNOLOGY TRANSFER AND COMMERCIALIZATION A. Technology Acquisition and Upgrading For CY 2006, a total of one hundred seventy five (175) S&T interventions were rendered assisting one hundred seventy four (174) existing firms/smes in the region. These Interventions resulted to: establishment of six (6) new firms; generation of additional one thousand one hundred ninety (1,190) man-months employment ; 1
2 generation of Twenty Million Six Hundred Twenty Seven Thousand Pesos (P 20,627,000) total gross sales of the assisted firms; and Twenty three percent (23%) average improvement in productivity per firm. B. Technology Training As one of the strategies to assist SMEs, a total of one hundred eighten (118) technology trainings for manpower on key production and other related areas were conducted with two thousand six hundred twenty five (2,625) participants from four hundred eighty one (481) firms. C. Technology Clinics / Investors Fora Eleven (11) technology clinics/investor s fora were conducted, forty-seven (47) firms assisted with seven hundred nine (709) participants. D. Consultancy Services DOST 7 with a strong collaboration with TAPI, DOST Councils, RDIs and Service Institutes, Academe, Private Sector and Partner Organizations were able to provide technical/productivity consultancy services to SMEs in Central Visayas. The productivity/consultancy services were provided through different programs such as Manufacturing Productivity Extension (MPEX), S&T Experts Volunteer Pool (STEVP), Consultancy for Agricultural Productivity Enhancement (CAPE), Cleaner Production Technologies (CPT) among others. A total of thirty (30) firms were assisted through MPEX, ten (10) clients assisted through CAPE, one (1) client 2
3 through CPT and seven hundred eighty (780) clients served through STEVPP deploying fifty nine (59) S&T experts. II. S&T Human Resources A. S&T Scholarship Scholarship programs are continuously assisting nine hundred seventy nine (979) ongoing scholars for SEI and for PSHS. The Provincial S&T Officer of Bohol graduated his MS in Environmental Studies at the University of the Philippines Visayas-Cebu College, October of 2006 as one of our supported scholars.. III. S&T SERVICES A. Testing and Calibration Services The DOST 7 Regional Standards and Testing Center (RSTC) generated a total income of Two Million Four Hundred Ninety Four (P 2,494,000) with assistance rendered valued at Forty Three Thousand Pesos (P 43,000). One thousand two hundred twenty seven (1,227) clients or eight hundred (800) firms were assisted to maintain high quality product standards through provision of five thousand seven hundred forty one (5,741) testing/calibration services. B. Packaging and Labeling Through the collaborative efforts of DOST 7 and the DOST Packaging Research and Development Center, seventy (70) S&T interventions such as package development, label designs, product/process development and nutrition information assistance were provided to fifty four (54) firms. As a result of these interventions, six (6) new markets were penetrated and sales increased by Seven Hundred Ninety Nine Pesos (P 799,000). 3
4 C. S&T Library and Information Services Adequate and up-to-date scientific and technological information has been continuously provided to two thousand nine hundred fourteen (2,914) students, researchers, professionals, entrepreneurs by the DOST 7 Library and information centers based in each PSTC. D. S&T Promotion With the thrust to nurture an S&T culture and enhance S&T awareness in the region, DOST 7 continued to develop and conduct S&T promotion activities and programs. This is facilitated by a total of one hundred sixty nine (169) press releases, thirty (30) of which are released in radio, one hundred thirty two (132) in print, and seven (7) in television. One (1) regional/provincial fair was also conducted sponsored by DOST while seventeen (17) fairs are sponsored by other agencies. Fifteen (15) press conferences and interviews also helped to promote the programs and services of DOST 7. Networks A total of one hundred twenty one (121) networks and linkages have been established/maintained to help in promotion and bringing science and technology closer to the people. The linkages with LGUs are continuously strengthened with two (2) projects co-funded with LGUs and seven (7) trainings conducted for LGUs. 4
5 DEVELOPMENT OF DOST VII FOOD SAFETY TEAM Most of the SET-UP assisted projects in Central Visayas relate to food processing and food safety is critical to these projects. To further develop the capability of the DOST 7 in assisting these small food processors and food service establishments, DOST 7 created its Food Safety Team. The team is composed of seven multidisciplinary DOST 7 personnel trained to be experts on food safety. Good knowledge on Basic Food Hygiene, GMP, HACCP & ISO The members of the DOST 7 Food Safety Team were trained by Martin Riebe, CIM Expert from August 2005 to November The training started with topics on Basic Food Hygiene / Good Manufacturing Practices (GMP) which consists of the following: a. Theoretical Handwashing b. Food Safety Hazards c. Personal Hygiene d. Cross Contamination e. Food Contact Surfaces f. Raw Material Specification g. Food Preparation Procedures h. Pest Control These topics were taken up including experiments/exercises and plant visits/assessments to make sure that the members have understood well the concepts and their applications. The next stage of the training was the understanding of HACCP (Hazard Analysis and Critical Control Point) concept which consist the following: a. Introduction to HACCP b. Prerequisite Programs c. Food Safety Hazards d. Codex Guidelines 1 to 12 The ISO standard Food Safety Management System and its relevance was also discussed as it had been identified to be the food standard of which food companies will have to be accredited in the near future. The discussion covered the highlights/benefits of having ISO as the food standard and the elements under this. Basic Knowledge on Audit Techniques The Food Safety Audit forms the culminating part of the over-all DOST 7 Food Safety Team Trainer s Training Course. This course provides the team with a fundamental understanding of 5
6 how to plan and conduct an audit following standard protocols. The team started with a classroom discussion led by CIM trainer Mr. Martin Riebe. He initially organized a group dynamics that involves giving sets of questions to each team member as to their own understanding of what an audit is. He gave the group an overview of food safety auditing concepts which emphasize on the review of objective evidence, comparing against requirements or audit criteria like ISO which is an auditable standard, and assessing and empathizing with the auditees level of involvement and understanding of their own food safety system. The minimum attributes of a food safety auditor were also discussed as one of the requisites of a well-planned, organized and successful audit. After all the theoretical discussions, an audit workshop was then conducted. For purposes of discussion and simulating actual audits, the CODEX General Principles of Food Hygiene manual was treated as an auditable standard. Each team member was assigned with a particular specification/element of the said standard, which they will study. Each one will then report to the class his / her own understanding of the said element and should be able to demonstrate like a real auditor what is asked or required, before a finding of conformance or non-conformance can be made. The trainer also discussed the roles and responsibilities of an auditor, different types of audit, the assessment stages, certification/registration bodies, among others. The team then ended this module by preparing an actual audit checklist based on CODEX HACCP. This was used during the group s practice audit at Sunpride Foods Inc., Mandaue City. Factory Evaluation Part of the training was to visit food manufacturing companies for the team to be able to apply their knowledge in food safety in the actual sense of food production. The team was able to assess food processors: 1 Chilen chicharon 2 Colette s Buko Pie 3 Sunpride Foods 4 Café Uno Waterfront Hotel 5 JME Food Products (Eliseo Gelato Ice Cream) 6 Alternative Foods Manufacturing Corp. 7 Profood International Inc. 8 Alenter Foods Inc. a. Plant Assessment based on GMP Plant assessment started with meeting the person-in-charge of the factory. The food safety team discussed with the management the purpose of the assessment and how the activity can help them improve their food production in terms of food safety. Actual observations were made on how the processes in food production go through and compared to what have been said and described by some workers that have been interviewed to check whether what s been written was done and what s been done was written. The plant had been observed also whether GMP is already in place or not or it s been in place partially. 6
7 Observations made were discussed with the management so it may help them implement GMP effectively. b. Plant Assessment based on CODEX HACCP The DOST 7 Food Safety Team was accommodated by the management of Sunpride Foods to conduct an assessment/audit based on CODEX HACCP in their plant. It started with the opening meeting with management representative. Discussion on the purpose of the visit, scope and duration of the assessment/audit. Actual assessment included review of documents, interviews of workers, inspection of plant facilities, observation along the process line, verification of the system implementation with that of written policies and SOP s. The final activity was the closing meeting. The team presented their overall findings and observations to the management as it may be useful in their quest for continual improvement for safe food. Training Modules The team developed two training modules Basic Food Hygiene & GMP and HACCP. Basic Food Hygiene & GMP Module includes the following topics: Theoretical Handwashing, Food Safety Hazards, Personal Hygiene, Cross Contamination, Food Contact Surfaces, Raw Material Specifications and Food Preparation Procedures and Pest Control. HACCP Module includes the following topics: Introduction to HACCP, Prerequisite Programs, Food Safety Hazards and Codex Guidelines 1 to 12. The team experienced in using these modules to all the trainings conducted. The developed modules were intended to respond to the current training needs of the food industries in the region. Trainings Conducted by the DOST Food Safety Teams The team hopes to assist the food processing sector in implementing Basic Food Hygiene and Good Manufacturing Practices (GMP), Hazard Analysis & Critical Control Point (HACCP) and other food safety standards in food production. To achieve this goal, the team conducted trainings to food processors on Basic Food Hygiene & GMP & HACCP using the training modules developed by the team. The following are the details of the trainings conducted by the team: 7
8 TITLE DATE FIRM/VENUE PARTICIPANT S Basic Food Hygiene and GMP Hazard Analysis & Critical Control Point Dec. 8-9, 2005 Dumaguete City, Oriental Negros Dumaguete Food Processors Cebu City Food Processors Handlers of Feb , Cebu City Mar. 6-10, 2006 Metro Gaisano 30 Supermarket, Cebu Fresh Farm City Produce, Fresh Mar , Metro Gaisano Meat & Fish Supermarket, Cebu City Aug. 26- Tribu Davao, 41 27,2006 Davao City Sep. 5-6, 2006 Magicmelt Foods, Bakery Workers 30 Cebu City Sep , Magicmelt Foods, Cebu City Sep , Cebu City Cebu City Food Processors Sep , Pinoy Foods, Mandaue City Sep , Bohol Bee Farm, Dauis, Bohol Sep. 30, 2006 DATA (Davao Tourism Association), Davao City July 4-5, 2006 Siquijor, Siquijor Siquijor Association of Food 22 Entrepreneurs (SAFE) Nov , Thirsty Fresh 2006 Fruits, Juices & Shakes Nov. 6-7, 2006 Cebu City Cebu City Food Processors NO. OF PARTICIPAN TS
9 Launching of the Food Safety Teams DOST VII Food Safety Team Over 100 guests and participants graced the launching of the Cebu Food Safety Team held on November 2006 Cebu Parklane International Hotel, Cebu City. Representatives from the food service and manufacturing sector dominated the affair at 58%, while 42% came from different agencies of government and the media. Figure 1. Percentage Distribution of Attendance Media 3% Gov't. 39% Private Sector 58% They were given due acknowledgement by DOST 7 Director Rene Burt N. Llanto, who also gave the welcome address. In imparting the rationale behind the creation of Cebu Food Safety Team (FST), Martin Riebe of the Center for International Migration stressed the need to help address issues of food safety and hygiene, which have become a primary concern of consumers. Riebe, at length also shared the benefits of implementing food safety practices among food firms especially in the area of global competitiveness. Presentation of the DOST 7 Food Safety Team Composed of seven members of multi-disciplinary background, the Cebu Food Safety Team was introduced to the key players of the food sector. They are Tristan Abando (Chemical Engineer), Vina Antopina (biologist), Marichu Baclay (nutritionist/food 9
10 technologist), Josie Elli (nutritionist/food technologist), Ethyle Iyog (microbiologist), John Jeremy Limon (chemist) and Bryan Ybañez (microbiologist). Undergone a rigorous training with Riebe, who is an international food expert, the FST members are now ready to provide trainings on Good Manufacturing Practices (GMP), Hazard Analysis and Critical Control Point (HACCP), to name a few; consultancy services relating to layout improvement, proper zoning of production area, process flow, among others as well as extend assistance for the implementation of GMP and HACCP in respective firms. Testimonies Representatives of some food companies which received trainings from the Cebu FST shared the benefits they experienced after the training. Representing the food service sector, Thirsty Fresh Fruits Human Resource Manager Rebecca Figer described the apparent changes in their firm particularly in the area of basic sanitation. Figer further related how their employees have become dutiful in following basic sanitation procedures in their day to day operations in the firm. For her part, Vicky Wallace of Bohol Bee Farm expressed her gratitude for the interventions of DOST over the years. With the recent food safety trainings that her company acquired from the Cebu FST, Wallace shared how the trainings facilitated attitude change among her workers when it comes to food preparation and hygiene. She also mentioned that the improved layout of their kitchen now is among the many changes in their establishment in an attempt to comply with food safety standards. On behalf of the food manufacturing group, Magicmelt Foods Managing Director Carolyne Go observed that the use of Cebuano language and workshops in the delivery of the training module are effective as the lessons are easily absorbed by the participants especially those that have low education. As a result of some consultancy and training sessions with the Cebu FST, Go shared the benefits of a properly zoned production area. Open Forum Inquiries raised in the open forum centered on how to obtain HACCP certification and to avail of the trainings. 10
11 Pictures (DOST VII Food Safety Team Launching) 11
12 DEVELOPMENT OF INTERREGIONAL VALUE CHAIN TO SUPPORT THE SMALL ENTERPRISES TECHNOLOGY UPGRADING PROGRAM (SET-UP) OF DOST The vibrant economy of Cebu is the result of its robust backbone of SMEs, led by hardworking entrepreneurs, and the province s strategic location in the country. Cebu has a multitude of exporters and manufacturers who have gained leadership in the sectors of: furniture & home furnishing, gifts & holiday decors (GHD) and fashion accessories. These sectors though fast growing are also beset with several issues. The growing difficulty among Cebu exporters & manufacturers is accessing quality raw materials and components at reasonable prices. The SMEs find difficulty in competing with bigger companies in getting good quality materials. It is in this backdrop that DOST 7 spearheaded the development of interregional value chain to support SET-UP projects in the Visayas and Mindanao under the furniture sector. This is with the collaborative efforts with the DOST Visayas and Mindanao clusters, Cebu Furniture Industries Foundation, Inc. (CFIF) and CIDA-Pearl 2. A total of missions were conducted to facilitate material explorations and develop a bridge of dialogue between raw material suppliers and exporters / manufacturers. Missions to Zamboanga Sibugay, Zamoboanga del Sur, Oriental Negros, Siquijor, Southern Leyte, Leyte, Caraga provinces were conducted. Mission to Zamboanga Sibugay and Zamboanga del Sur Considering the potential of the Lampakanay and Abaca Industry in the provinces of Zamboanga Sibugay and Zamboanga del Sur, industry experts namely Dr. Carlos Tomboc, Director of Philippine Textile Research Institute (PTRI); Engr. Jesus F. Zamora, Jr., Supervising SRS of DOST VII and Mr. Ramil Quiapo, in-house trainer of Cebu Furniture Industries Foundation, Inc. (CFIF) with the DOST-IX assessment team conducted a mission to Alicia, Zamboanga Sibugay, Kumalarang, Aurora and Molave, Zamboanga del Sur on April 18-20, 2006 to assess the status of the lampakanay and abaca industry, evaluate the quality and volume of lampakanay and abaca, identify appropriate technology interventions that DOST will provide to add value to the products and identify how can this industry contribute to the development of interregional value chain for the furniture industry sector. Abaca Industry Alicia, Zamboanga. The municipality has a 13-hectare abaca plantation since The abaca species planted in the area include Pulahan, Putihan and Lunhan. Abaca are harvested every 45 days and are stripped to proeduce fiber using the one (1) unit 1 Hp Abaca Stripping Machine. The municipality s current production volume ranges from 120 to 180 kilograms of abaca fiber per harvest which are sold at P48.00 P53.00 per kilogram, regardless of the fiber grade. Market outlets include Zamboanga City and Sindangan, Zamboanga del Norte. 12
13 The municipality is aiming to improve the abaca production since it is considered the primary product under the One-Town-One-Product (OTOP) project. They will be receiving P 500,000 funding assistance from Fiber Industry Development Authority (FIDA) for the development of an abaca nursery in the municipality. In addition, a total of 1,800 hectare land is allocated for an additional abaca plantation in the area. The pressing concerns of the industry are the lack of skills in abaca processing and the absence of quality control on the planting materials/seedlings. Thus, training on skills development on abaca processing is recommended. Abaca Industry Kumalarang, Zamboanga del Sur. Abaca is also considered as the municipality s primary product under the OTOP project. A total of 39 hectares are planted with kutay-kutay abaca species while an additional 60 hectares of land is proposed for the expansion of abaca plantation. The municipality generates 19,500 kilograms of abaca fiber per harvest. The selling price is P35 P40 per kg (pick-up price) and the major outlet is Cagayan de Oro City. The municipality owns one (1) unit abaca stripping machine and two (2) units handloom used for abaca processing. Aside from selling raw abaca fiber, the Women s Association of the Municipality is also producing various abaca fiber-based products such as bags, mats, table cloths, baskets and the like. However, it was noted that it has inferior product quality and there is also a need for skills enhancement training and product development trainings such as product coloring/dyeing. Lampakanay Industry Aurora, Zamboanga del Sur. Around 120 households from five (5) different barangay in Aurora, Zamboanga del Sur (ZDS) are involved in Lamapakanay farming and rope making. There is a ready market in Cebu for the lampakanay ropes but the cost of shipment is high. It was then suggested by Dir. Tomboc that value added products (i.e., colored/dyed ropes) must be produced so that it would compensate the high cost of shipment to Cebu. The Lampakanay Association of Aurora is also engaged in bamboo and wood furniture production. Technical assistance by the DOST Forest Products Research & Development Institute (FPRDI) is then recommended. Lampakanay Parasan, Molave, Zamboanga del Sur. The Parasan Rope Makers Association (PRMA) is a legitimate in Barangay Parasa, Molave, Zamboanga del Sur that has 300 members from Parasan and 12 cluster barangay in Molave. The association is producing rope out of Lampakanay with an average monthly production of around 8,000 to 10,000 pieces of rope bundles and sold to Cebu City traders/handicraft manufacturers at P10.00 per bundle. The association is beset with problems like poor linkage with buyers/exporters, delayed return of investment due to post-dated check payments, pole vaulting of some association members, administrative problems and the absence of record-keeping procedures. Improvement of the process layout, proper stacking of raw materials to reduce rejects and implementation of safety practices are recommended. 13
14 Recommendations. The mission recognized the potential of the industry for development. The following are recommended to further improve the industry: A company tour and a round table discussion between the industry players are recommended. This activity would bring together the farmers from the four (4) different municipalities and the exporters in Cebu to discuss pertinent issues concerning the industry and establish possible market linkages. The activity was scheduled on the 2 nd week of June Technical assistance on product improvement through training on coloring/dyeing of abaca and lampakanay-based products and other related technologies which would add product value shall be provided to the four (4) municipalities through the DOST Philippine Textile Research Institute (PTRI). Training on furniture preservation/treatment for the improvement of bamboo and wood furniture quality shall be conducted by the Forest Products Research & Development Institute (FPRDI) in the municipality of Aurora, Zamboanga del Sur Mission to Oriental Negros Abaca Industry. Another mission to Valencia, Oriental Negros was conducted on October 25, With the assistance of Municipal Agricultural Office (MAO) and Fiber Industry Development Authrority (FIDA) personnel of Valencia, the team was able to assess a fiber cooperative in Valencia. The discussion with the cooperative yields the following information: a. The cooperative has a ready stock for bakbak situated at their storage room b. It has first class fiber with length of 3 meters or more c. It has knotted fiber ready for sinamay production d. It has sinamay which is in rolls ( Width is 36 inches and Length is 24 meters) e. As of the moment, they have one customer from Cebu for bakbak but the order is regular f. In addition, they have customers from Manila for abaca fibers g. the abaca species grown ( Laob ) is more durable than other species grown in Visayas region according to the buyers With the available raw materials, the cooperative could be a potential supplier of semiprocessed bakbak and abaca ropes to Cebu mixed media manufacturers. Furthermore, an actual visit to abaca strippers was conducted. The abaca is being stripped using manual stripping implements in Lunga, Valencia. The harvested abaca are classified according to species, maturity, length and the physical characteristics of bracts/leafsheath. The abaca strippers have the options then to sell the fiber to cooperative or directly to the traders. 14
15 A discussion with FIDA provincial officer revealed that Oriental Negros is shipping na average of 10 tons of bakbak and abaca fibers monthly to Cebu. The municipality of Valencia is noted for high quality abaca fibers thus more traders are operating in the area. Untapped sourcesof bakbak and abaca fiber in Oriental Negros are Sibulan and La Pamplona. Bamboo Industry. Bamboo Buglas Institute in Oriental Negros is serving Cebu furniture exporters with bamboo slats, crushed bamboo and other bamboo derivatives. The firm uses boho bamboo species since it is naturally straight and abundant in the area. Mission to Siquijor The mission to Siquijor is a meeting and discussion with the United Furniture Makers Association in Siquijor. The following information were obtained: sustainability of wood material supply is pushed through a no replanting proof, no tree cutting policy lumber supplier/buyers have necessary permits every furniture maker is encouraged to register its operations one (1) unit furnace type lumber dryer is acquired by CJP Furniture Shop in Larena, Siquijor through DOST Small Enterprise Technology Upgrading Program (SET-UP) Mahogany and Gemelina lumbers are sold at below P35/board foot (kiln dried) and P28.00/board foot (air-dried) Molave is also available in the province sold at P35/boardfoot (air-dried) a. nobody can cut down trees in the province without a proof of replanting which makes it sustainable b. everybody is encourage to register their operation c. all the necessary permits are available for their lumber d. have a FTLD dryer but not used due to the lack of customers using kiln dried wood e. their lumber can be a good source for those Cebu manufacturers that need legal papers before the processing of wood especially the one with environmental programs. f. mahogany and gemelina boards can be sold below P35.00 ( KD ) and P ( AD ) g. there is also a lot of Molave and sold at P35.00 ( AD ) h. possible subcontracting work from Cebu manufacturers i. when get customers for KD wood, should employ air drying then kiln drying to minimize drying cost and drying time j. right now PSTO facilitates the revival of the association k. plan to use FTLD as common service facilities for the members l. inform them about the coming value chain development forum 15
16 1. Visited to different shops of the association members : a. saw FTLD dryer but not used since actual consumption is lesser than the output b. the output of this dryer could be enough to supply Cebu manufacturers that used solid wood as accents or carcass in their production c. grading of lumber could increase the value of the boards d. sharpening of tools such as saw blades & planer knives could be done in Cebu e. one of the association member produce a rustic furniture design f. plan to plant teak wood trees instead of mahogany g. plan to have a tool sharpening machines to be operated by the association 16
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