By : Gil E. Miranda

In the year 2000, was a bad year for prawn producers elsewhere in the Philippines except in Baug. That year the supply of exportable prawn can be found only in Magallanes and the price shoot up to P400 per kilo. That year the members of Baug CARP Beneficiaries Multi-Purpose Cooperative (BCBMPC) made an average annual household income of PhP400,000.

In Bisaya, or the dialect of the people of Agusan del Norte, “baug” means infertile or unable to produce. It is the exact word applied to a man who cannot make a baby. But for DAR people in Agusan del Norte, “Baug” is the short reference given to the most productive and successful ARB cooperative in the agrarian sector of the Philippines.

Baug is the name of the river separating the 140-hectare CARP transferred land from the mainland of the province of Agusan del Norte making the entire ARB-owned prawn farm an island. For the farmers of Poblacion Magallanes ARC (POMARC), “baug” is adopted as a name of their coop in grateful recognition of the God-given river which formed the island delta now owned by them through CARP. Their ownership of course was not an easy struggle. It was a classic in agrarian reform history.

From Hunters to Landowners

Located near the mouth of the legendary Agusan River and fronting the Butuan Bay and just across a river branch of the Municipality of Magallanes, the 141.5860-hectare island delta was part of government-owed land and through RA 5938 was declared a barrio site of Magallanes in 1969. Swampy and covered with mangrove-like forest the land was never utilized as barrio or town site but became a rich ground for well-financed crab hunting, the main occupation of the poor ARBs prior to coverage.

Beginning in 1992, the crab hunters started contacting local DAR people in Magallanes for advice on how they can own their hunting grounds. They also contacted an NGO to help them organize into a cooperative. DAR and the NGO became partners in empowering the crab hunters and prepare them to become landowners. But trouble began when DAR started land documentation.

The local government of Magallanes resisted to the steps taken by DAR to acquire the land for distribution. There were other claimants like the wealthy financers of crab hunting and applicants for fishpond lease agreements who have clouts within the local government. But despite the resistance in 1989 DAR issued CLOA Nos. 00102467 and 00101631 for 110 ARBs but was unable to distribute because of a technical problem. The land is still classified as GOL and part of the property of Magallanes. DAR had to exercise extraordinary dancing and dealing efforts. Diplomacy, skillful negotiation and after a series of meetings with the mayor and the members of the SB, the LGU of Magallanes reclassified the land as agricultural and surrendered the same to DAR in 1993. Finally in December 1994 DAR distributed the CLOA to 110 crab hunters and fishpond workers.

The Award Was More Than A Title

The former crab hunters and fishpond workers who are now holders of Certificates of Land Ownership Award from DAR are today residents of multi-million homes and ride newly bought 4-wheel drive STRADAs. Their income grows from PhP223, 000 per family in 1998 to PhP400, 000 in the year 2000 and came down to PhP180,000 in 2002. It fluctuates with the international export price of prawn but it could never again go down below the threshold of poverty.

When the EU-funded Agrarian Reform Support Project (ARSP) Credit Program was started in 1998 in the province of Agusan del Norte, Baug members through their cooperative availed in multiple cycles a total loan of PhP 25 M and completing the repayment 100% before maturity. They extended loans to other farmers that in 1998 the ARC became the National Awardee as the Pinakamaunlad na Pamayanan ng Repormang Pansakahan of DAR for having alleviated 381 households from poverty.

Baug members serve as inspiration to other farmers for standing as a living proof that farmers can successfully transform swamplands into productive fishponds. Their productivity is matched with the capability to produce export quality prawn that they have placed Magallanes in the international map for prawn foreign buyers to visit and do business with and make the prawn industry a multi-million export earner for the province of Agusan del Norte.

Some member suffered losses of fishpond areas when CARBDP constructed a cut-off channel across the fishpond area as part of flood control project in the province. But through the intervention of DAR and because of strong protest made by Baug leaders, the cut-off portion of ARB prawn farms were fully compensated.

The Continuing Challenges

In the last harvest or early this year, production level at the fishpond area suffered massive prawn casualty that some members were able to harvest only 20% of what was expected. The losses were later attributed to the possible changes of the water composition in the fishpond areas. They suspect that the on-going construction activities related to the multi-billion Cotabato-Agusan River Basin Development Project (CARBDP), which both have irrigation and flood-control components, introduced unknown elements in the water. In addition, there were findings from prawn technicians that a variety of luminous bacteria from the sea that is related to the red tide were visible in the prawn pond but direct causal relation to the prawn casualty has not been established yet. For this reason Baug members requested for extension of their credit line under the CAP-PBD of DAR and LBP until the production level normalizes.

The threats to the success of the Baug farmers never stop. While development managers speak usually of a point of separation for farmers to become self-reliant, recent trend in development redefined the meaning of sustainability not as the ideal independent struggle of the farmer or coop to stand alone economically but as the continuing partnership of all stakeholders. Farmers will continue to work for growth. DAR must not wane in its support. What will really work in the real world is not self-reliance but a lasting partnership.

The Cooperative: Baug CARP Beneficiaries Multi-purpose Cooperative

Baug CARP Beneficiaries Multi-purpose Cooperative (BCBMPC) started as an association of small fishpond operators called the Magallanes Aquaculture Developers Association (MACDA) in 1987. They started with a capital of P35, 000.00 from the contribution of its members as their initial capital build up. With that amount, they were able to assist the members of its financial needs for prawn production. Now, membership increased from 110 to 611 and capital build-up increased to P 4,422,166.65 as of March 2004. Total assets is P 26,000,000.00 .

The significant increase in capital build up was attributed to a very effective policies on internal resource mobilization. Marketing of ARBs produce was done through the cooperative. This policy facilitated the 100% repayment of production loan and subsequently the increase of the individual members’ CBU, wherein P 5.00 is deducted for every kilo that is marketed by the cooperative. Another strategy employed by the cooperative, is that for every loan availed by its member thru the microcredit program, a certain amount will be retained and credited as CBU and savings for that particular member.

One key factor that contributed to the success of BCBMPC, is their diligent honest , hard working, competent officers and core management team. This has resulted to members patronizing the cooperative’s business and services. Their obligations are paid on time and active participants in all coop activities.

Services being offered by the cooperative includes production loan – cash and farm inputs; Rice trading and microcredit program for livelihood projects. A Mini-Grocery was formally opened a year ago, catering to the needs not only to its members but also the neighboring barangays as well. This is 100% financed by the cooperative. It is an active participant in many socio-civic activities in the community.

Last February, it formally launched the “Members Savings Operation. This is the newest service being offered by the cooperative and is typically bank-like in its operation. It is not only exclusive to coop members but also to non-members living within the community.

The enhancement trainings and seminars conducted primarily by DAR and NGOs has empowered them. They have an effective organizational structure, manned by competent and dedicated officers and core management team. As a result of its efficient and progressive business operations, it has attracted many non-ARB prawn farmers to become members. Even pensioners / retirees and students are depositors of their “Members Savings Operation”. This is a testament to the trust, confidence and credibility earned thru hardwork, dedication and sound business policies.

The organization played a major role in achieving the ARC objectives. BCBMPC has come along way, It has attained tremendous economic development which serves as a model to other organizations. They have the vision and the will to pursue their plans and programs. They met every challenge with strong determination and failure with optimism.

List of Awards / Recognitions Received

Ø Most Outstanding Cooperative in CARAGA Region during the CARAGA Cooperative Congress, September 13, 2003.

Ø Outstanding Cooperative Performance Award in the National Level, July 9, 2000.

Ø Most Successful Cooperative in CARAGA Region, July 14, 1999

Certificate of Appreciation from ARSP – E U, for being the First People Organization with 100% Credit Repayment, March 29, 1999.