MABS conducts study visit to Punla sa Tao Foundation’s Manok Mabuhay Project

To further expand the scope and scale of agriculture microfinance that rural banks can provide, MABS conducted a study visit on June 18 to small scale poultry growers in Cavinti, Laguna.
Cavinti is a 4th class municipality located about a hundred kilometres southeast of Manila. Several farmers here are part of the social entreprenuership business model that Punla sa Tao Foundation has been pilot testing in the province. This project called “Manok Mabuhay” is being conducted in partnership with an industry integrator and Cavinti’s backyard poultry farmers.
Through forward and backward risk mitigating support provided by an integrator, the business model makes small scale contract growing possible. The Cavinti pilot test conducted by Punla has so far shown that small scale poultry growing produces better feed conversion to weight ratio, enabling farmers to earn as much as P10.00 per broiler.
How small scale is small scale? The poultry farms have between 500 and 1000 heads that a farming household can easily take care of. The small scale size is also meant to match the resources of small farmers and their ability to access micro loans. With this size range, a farmer can earn about P6,000 to P10,000 for every 30-day growing cycle. The start-up investment is between P30,000 and P60,000 for building the poultry house that the farmer can finance out of own savings and/or loans. The chicken farming business model fits into agriculture microfinance but appears to require at least 10-12 months to support the loan amortization.
The implementation of the business model is now being expanded to more towns in Laguna. Punla Sa Tao Foundation’s “Manok Mabuhay” project was established to alleviate poverty in the area. It is designed to benefit small farmers like those in Cavinti.
In 2004, MABS introduced the MABS Approach to agriculture microfinance that is based on cash flow and the ability to pay, rather than production cost per unit.  MABS is a United States Agency for International Development (USAID) funded program in partnership with the Rural Bankers’ Association of the Philippines (RBAP) with oversight from the Office of the President through the Mindanao Development Authority (MINDA). Punla sa Tao Foundation is an accredited MABS Service Provider (MSP) for the MABS Approach Training & Technical Services.

To further expand the scope and scale of agriculture microfinance that rural banks can provide, MABS conducted a study visit on June 18 to small scale poultry growers in Cavinti, Laguna.

Cavinti is a 4th class municipality located about a hundred kilometres southeast of Manila. Several farmers here are part of the social entreprenuership business model that Punla sa Tao Foundation has been pilot testing in the province. This project called “Manok Mabuhay” is being conducted in partnership with an industry integrator and Cavinti’s backyard poultry farmers.

Through forward and backward risk mitigating support provided by an integrator, the business model makes small scale contract growing possible. The Cavinti pilot test conducted by Punla has so far shown that small scale poultry growing produces better feed conversion to weight ratio, enabling farmers to earn as much as P10.00 per broiler.

How small scale is small scale? The poultry farms have between 500 and 1000 heads that a farming household can easily take care of. The small scale size is also meant to match the resources of small farmers and their ability to access micro loans. With this size range, a farmer can earn about P6,000 to P10,000 for every 30-day growing cycle. The start-up investment is between P30,000 and P60,000 for building the poultry house that the farmer can finance out of own savings and/or loans. The chicken farming business model fits into agriculture microfinance but appears to require at least 10-12 months to support the loan amortization.

The implementation of the business model is now being expanded to more towns in Laguna. Punla Sa Tao Foundation’s “Manok Mabuhay” project was established to alleviate poverty in the area. It is designed to benefit small farmers like those in Cavinti.

In 2004, MABS introduced the MABS Approach to agriculture microfinance that is based on cash flow and the ability to pay, rather than production cost per unit.  MABS is a United States Agency for International Development (USAID) funded program in partnership with the Rural Bankers’ Association of the Philippines (RBAP) with oversight from the Office of the President through the Mindanao Development Authority (MINDA). Punla sa Tao Foundation is an accredited MABS Service Provider (MSP) for the MABS Approach Training & Technical Services.