Agroforester

Iling Proper, Grassroots Chris-Craft Refurbish Craftsmen in the Making

2020-06-10T17:59:00.000+08:00

One of Kap's original Mahogany in 2019, planted in 1994.

One of Kap's original
Mahogany in 1999,
planted in 1994.

The effort of what was to become the Ilin Value-Added Forestry Management System Foundation began in November 1999. The founder first visited the Island of Ilin and met the Barangay Captain (village leader) who was a self-designated forester and along with his wife, planted more than 13,000 Mahogany seedlings commencing in 1994 on their property within the Barangay of Iling Proper. So, when the founder asked what he was doing on the island he said that he wanted to grow trees. The Barangay Captain (Kap) replied that he had trees and is growing them. “What kind?”, “Mahogany” replied Kap. “Oh wow! That is the tree that I want to grow. Why are you growing them, are you going to grow them just so you can cut them down?”. “No.” he replied and continued with “I just want to grow them.” That is when the founder said to Kap, “I think that we can grow them together, can I see some of your trees”.

Foresters

The original foresters sponsored by IVAFMS Foundation, circa.
2002.

These wonderful local residents of Ilin were brought together by Kap for the purpose of growing trees. The IVAFMS Foundation came along and merely helped facilitate the establishment of the tree nursery, management and some guidance. For five years the planting program was fairly aggressive and 10 members participated by planting on their own land several thousand of the foundation’s seedlings each. In the following five years the planting of the trees continued but at a lesser pace and number. Nevertheless in the end the planting all but ceased in 2010. Each participating family continued to grow and protect the trees to this date. All-in-all the estimated number of Mahogany trees growing that are between 9 years and 19 years of age are 25,000 to 50,000 and possibly more. The trees are planted in several locations on the separate lands that are owned by the members and to survey all of the trees to determine both the number and their quality requires a site visit to each location, something that takes a few days, but will be done in the near-term.

A Promise

The key to sustainable forestry is
high-value value-added projects.
1915 Fay & Bowen Launch, photo copied from web.

When the IVAFMS Foundation joined the Foresters and extended its help and plan for the future it was stated to the group by the Founder that the trees were not being planted for them, they were being planted for their children, grandchildren and for the generations into the sustainable future. These members remembered when the Philippines was a forested country and how it had lost all of its forests through wholesale deforestation. It was clearly apparent that when discussing the future sustainable value of these trees, although a seemingly small number, that they welcomed the opportunity and their sacrificing in order to see the benefits for their heirs.

Can We Now Start a High-Value Sustainable Refurbishing/Boat Crafting Business

Only a handful of these beauties each year will bring prosperity
to the village. Mahogany grows 7% per year. At this size
(109 cm) in another 10 years this tree will be double the girth.
Planted in 1994, pictured in 2016.

The keys are the wood, the craftsmanship, the product, the master craftsman, the apprenticeship team and the sustainability.

Wood

Mahogany stands can be managed to avail 15 trees per year indefinitely.

Craftsmanship

Hand made using hand tools achieving the highest quality standards.

Product

Refurbish the classics, such as the Christ-Craft small power boats. Three boats per year.

Master Craftsman

In search of a senior citizen, foreigner, with a lifetime of experience as a craftsman boat builder who desires to leave a legacy through the teaching of his craft to apprentices. He would be sponsored by the Foundation and live at site while enjoying being a major part of the community.

Apprenticeship Team

IVAFMS Sponsored Basketball team on Ilin Island, future
apprentices.

The children of the original Foresters have completed their educations and are struggling to provide for their new and young families as their parents struggled for them previously. It is now time for the children to learn to craft high-value classic boats made of the Mahogany trees that their parents sacrificed to grow on their behalf, sustainably.

We Are Beginning the Promise

At the very start of the time of creating the first tree nursery one of the foresters asked the founder The answer was “Forget thinking of harvesting the trees, these trees are for your children, grandchildren and their grandchildren. It is you and the other foresters who will be remembered for their futures.” It is now time for us to search the world and find the person who is to be our Master Craftsman teaching and guiding our apprentices. If you are a master craftsman who wants to leave his mark or you know one, please contact us at jjr100000@yahoo.com.

WHO?
Preferred but not required:
Master craftsman using true Mahogany
Retired, desirous of living on Ilin Island in the Philippines
Can handle remote living
History of teaching apprentices
Wants to leave a legacy as a person starting a new craft of building/refurbishing classic boats in the Philippines

From Ilin overlooking IVAFMS banka boat and the adjacent island, Ambulong.

Is Mahogany the Answer?

2019-05-15T14:05:00.000+08:00

Is Mahogany the Answer?

True Mahogany or “Genuine Mahogany” is of the Swietenia genus. The Khaya genus is “close enough” however Shorea genus or Philippine Mahogany comprises unrelated woods bearing only the label “Mahogany”. Having said that Genuine Mahogany is probably one of the best choices for reforesting the country but not as a "lone ranger". Yes there are about 70 other species of tree that are considered indigenous and therefore considered to be a better choice. I simply ask, have you ever tried to grow the indigenous species? If you have I think that you are open to growing the easy-to-grow True Mahogany.

One Species

Genuine Mahogany, Swietenia macrophylla. From The Wood Database", saved
from Craig Bialick. As a fast growing tree in the tropics this amount of growth
is realized in less than 90 years.

Not one species is the real answer. Although and typically those who habitually plan reforestation projects do settle on one species and their intent is to grow as many of those trees as is possible so that a mono-crop forest develops for its commercial value. Nearly all trees were never engineered by Mother Nature to grow in the forest all by themselves. Unfortunately we tend to look at reforestation merely as the growing of a crop or stand of trees that we are growing for the specific purpose of cutting down.

Biodiversity

Biodiversity has not been part of the typical reforestation plan. Biodiversity is what existed before the original forest was removed for whatever reason. To replace biodiversity with only one species is what should be the issue rather than whether or not a particular species is favorable or not, and favorable to whom?

We know how beneficial biodiversity is in the forest but for some reason that same logic is lost when complaining about the results of mono-cropping the forest while focusing on spurious issues about endemic or indigenous. Make biodiversity and sustainability the issue and that is something which you can hang your hat.

Eight men stand across the with of a Mahogany Tree in Cayo, Belize

Sustainability

Sustainability and biodiversity are excellent partners while mono-cropping, regardless of the species, is not only singularity in practice it is not sustainable on behalf of Mother Nature, while one might argue that the commercial value can be sustained, but without diversity the value is hollow and in the end more costly than beneficial.

The Sustainable Cycled

When we plan a forest for a thirty-five year cycle and we grow it to have biodiversity it is sustainable and beneficial to the point that Mother Nature sings her praises and rewards the forest with its own new abundance that complements the local community.

The photographs of the majestic True Mahogany on this page reveal how it looks when standing inside the forest as a part of a sustainable bio-diverse forest.

Imagine

If you reforested 100 hectares using sustainable and bio-diverse practices your great-grandchildren would enjoy inside your legacy forest one majestic true mahogany tree on each hectare. Imagine 100 of them each surrounded by hundreds of smaller ones and hundreds of other species of trees all producing something of value on a regular and sustainable basis. Also, imagine that the trees are all living and as part of the living cycle in the forest are responding to the gratitude of Mother Nature. What a community partner, imagine that! It is feasible.

For the Skeptics

If you travel the Philippines along the national highways you will notice a particular species of large palm tree off in the distance. It is called the Buri. If you are in doubt as to which tree it is just ask and the knowledgeable one among your group will point them out to you. There is no shortage of them. Once you know how to look for them you will begin to notice that many of them appear to be dead but still standing. In fact they are dead, most likely. See they blossom only once in their lives and that is after they achieve the ripe old age of 80+ years; it is then that they die. At that point you shift your attention to counting how many dead Buri that you are seeing and you are amazed, but after all there are many more living Buri trees along the same ride. If you were to cut one dead Buri per year you would never run out of them. Sometimes, we must first plant, wait, then harvest judiciously and sustainably from a bio-diverse forest. Imagine that the Buri were instead majestic Genuine Mahogany. See, it is feasible.

Tree Banking for Our Children and Grandchildren

2019-05-15T12:04:00.000+08:00

Tree Banking, an Example

It is simple for those who have tropical land. For others who “have not” it can still be simple if you have your reliable contact who has tropical land and the knowledge and wherewithal to assist you. Later, this methodology will be explained but initially the basics follow showing how tree banking can sustainably work for you and your family.

Although Mahogany prices in the Philippines are low and below the internationally recognized value it is actually a very good time to grow trees. When in the growing phase the low price is irrelevant. The future supply lends itself to a top-end furniture crafting business model which levels the playing field on an international basis. In other words conduct the growing and crafting in the Philippines and then conduct the selling on the international market which will be illustrated throughout this series of articles.

Figure 1 25-years-old, this six feet

of circumference converts to

two-plus feet in diameter. Growing 7%

per year by 35 years the diameter will

be 3.8 feet (45 inches). Planted in

1994. Thirty-five years will be in

2029. How old are your unborn children

or grandchildren now? Rhetorical yes,

but thought-provoking nevertheless.

Growing trees is for the next generation.

Sustainable forestry is for all

succeeding generations.

Figure 2 Mahogany sprouts,

March 17, 201; two beds,

about 4,000, nearly 100%.

Figure 1 Mahogany seed bed, early

March 2019, two beds, 4,000.

Value

Unfinished solid Mahogany lumber at Home Depot in the USA ranges from US$6.00 to $28.00 per board foot (BF). Premier cabinet makers worldwide extol the qualities of crafting with Mahogany. Well-crafted high-end furniture using Mahogany demands the equivalent of a factor of ten or more above the unfinished BF. When factoring this amount the BF value of Mahogany, even at the low end, is US$60/BF, gross value of course. The net might be US$30/BF.

The Doyle rule is a way of measuring the standing tree in order to determine the available BF. The rule uses DBH which is the acronym for Diameter Breast High. You are invited to research the Doyle rule more on your own.

DBH (inches)	3 logs (BF)	Gross Value: Tree $60/BF	4 logs (BF)	Gross Value: Tree $60/BF
36	1,310	$78,600
42	1,860	$111,600	2,100	$126,000

Linear value examined simply:

The future in the Philippines of having a high-end furniture crafting business may realize phenomenal results and additions to the local domestic product. The sustainability line shows excellent factors when growing only 200 trees for the account holder. More to follow.

WITH MALUNGGAY (Moringa) YOU CAN HAVE YOUR RICE AND EAT IT TOO

2017-06-14T14:16:00.000+08:00

By Joseph J. Reynolds, MPP

The Philippines is an interesting case example of how a tropical country does not grow enough of its mainstay food. This is nothing new, for more than the past century, even
when the population was relatively small and there were more farmers per capita than today, it imported the portion of rice that it would not grow. Looking to the future with higher population and less expansion land how will the Philippines continue to meet its appetite for rice, can it have its rice and eat it too?

Arable land per crop production index for the world, since 1961

If agricultural use of land area worldwide has decreased over the past 50 years by 68% however the food production has remained unchanged is it possible that by 2050 the arable land will be expanded by 70 million hectares, or about 5 percent? Yes, according to Navin Ramankutty and Jonathan A. Foley who have reconstructed the change in global agricultural land usage[1] as reported by Max Roser in his report Land Use in Agriculture.

Agroforestry, another way perhaps

Q.: Will agroforestry bring its biodiverse and sustainable technology into play and shift the production paradigm to be even more efficient?

A.: With a narrow focus on only the Philippines the answer to this efficiency question has to be a conditional yes. Simply, the Philippines does not have an average third world profile. It has a high and increasing level of dollar income, it has the land for agricultural or agroforestry expansion, it has the knowledgeable people resources to make it happen and it has technology to help it happen, but does it have the plan to make it happen?

The total population in the Philippines was estimated at 103.9 million people in 2016, according to the latest census figures. Looking back to the year of 1960 when the Philippines had a population of 26.3 million people it is now 3.9 times that and in only 56 years.

What will 2050 bring

The UN projection for the population of the Philippines in 2050 is 148,260,000 which is a decrease in the rate of increase, down to only 1.7 times the 1960 population as compared to the 3.9 in the 56 year period from 1960 through 2016. Why the decrease? Not sure, actually with the mean population age in the Philippines being less than 25 years old it must question the UN projection as being very optimistic or conservative. Let's be careful, if the Philippines grows too much it can export but if it grows too little the Philippines will continue 100+ year trend to import.

Can Rice Production Alone Feed the Philippines

According to the Philippine government rice production in the Philippines comes from the dedicated rice farming of 43,000 square kilometers or 4,300,000 hectares.

If the predicted population of 148,260,000 in 2050 occurs and the farm production of 4,300,000[2] hectares does not increase significantly or even if it does, there needs to be, either more productivity of rice per hectare, difficult at best, or a different class of crop that produces more benefits per yield and is sustainable. All of this needs to be in place and growing by 2050 in lieu of rice.

The added benefit of additional profitability can allow for no additional increase in farmland. One might exclaim that we will need to increase the hectares of farmland, but do not forget that over the more than one hundred years past the constant increase in farmland has not changed the rice import profile. Maybe rice is not the total answer and the solution must be able to exist using the amount of existing farmland as we know it to be today.

The Philippine government reports 3.59[3] metric tons per hectare of palay harvested in 2009. In kilograms this means 3,590 or 0.359 kg per square meter and after milling, according to the IRRI, 68% to 72% is rice. Converting the production of above to rice in kilograms this means 2,513 or 0.251 kg per square meter and converting that to value per square meter at the arbitrary figure of Php19 (US$0.387) per kg is Php 4.769 (US$0.097) per square meter of value.[4]

Figure 2 Northern Luzon in the mountains http://www.webnou.net/index.php/writer/3696/ . Figure 3 Tanyag, Occidental Mindoro, a more typical topography. Most farmland expansion requires conversion of sloping land, much of which is heritage land.

The Philippines is the world’s third largest importer of rice.

Rank	Country	Rice Imported (1,000 metric tons)
1	China	4,700
2	Nigeria	3,000
3	Phillippines	1,800
4	Iran	1,600
5	Indonesia	1,600
6	Saudi Arabia	1,550
7	European Union	1,500
8	Iraq	1,200
9	Senegal	1,100
10	Malaysia	1,000

http://www.worldatlas.com/articles/the-largest-rice-importers-in-the-world.html

An Alternative, Perhaps it is Moringa and Other Herbs

Several hundred years ago many of the European trading companies found great wealth in importing herbs and spices to Europe from parts of Indonesia that were referred to as the Spice Islands. Moringa oleifera (Malunggay) has more nutrients per kilogram of its leaf powder than one kilogram of milled rice; the amount is significantly more. The production of Moringa oleifera powder, or turmeric powder, or at least 12 more examples, per square meter is one kilogram at the wholesale value of Php 1,000 to Php 1,200 (US$20.40 to US$24.48 ). More than 209 times that of milled rice.

With proper management the slow and partial conversion from the increase in rice production to sustainable herb production could increase profitability at a far greater rate than that of both population growth and the production of rice. If this were true the profits could help pay to import all of the rice needed by the Philippines and the net would be a better standard of living and health. Furthermore, no land conversion from existing land need take place. Continue growing rice, hopefully in a better way, but only add the herbs to the new lands that will open for what should be agroforestry and the biodiverse and sustainable high value crops more akin to the former Spice Islands. With modern technology these herbs may be packaged and couriered around the world to ecommerce retail customers at even higher margins than wholesale, supra, thus enabling the Filipino to have his rice and eat it too, with Malunggay.

[1] Ramankutty, N., and J.A. Foley (1999) – Estimating Historical Changes in Global Land Cover: Croplands from 1700 to 1992. Global Biogeochemical Cycles 13(4): 997–1027. Ramankutty, N., A.T. Evan, C. Monfreda, and J.A. Foley (2008) “Farming the Planet: 1. Geographic Distribution of Global Agricultural Lands in the Year 2000.” Global Biogeochemical Cycles 22 (January).

[2] 4,600,000 hectares harvested in 2016 according to USDA

[3] 3.97 t per ha. By the USDA in 2016

[4] Previous empirical studies by the author had more generous findings of Php5.4 per square meter.

Equity Partnerships in Sustainable Reforestation at "Hilltop", a Series 07

2017-05-02T18:29:00.000+08:00

The Future is here, what is it?

Agricultural biologicals, perhaps

Figure 1. From LaurieCo.

Agricultural biologicals are products that are derived from natural sources such as microorganisms, plant extracts, or other biological matter. Farmers and consumers alike have little, if any, knowledge about this and yet they are the intended beneficiaries. Why is it difficult to get from idea to concept and then to implementation of new processes that develop agricultural biologicals? Perhaps it is that the agricultural products which we find on our grocery store’s shelves were first designed several generations ago and are part of the accepted mainstream, the daily routine. Information access and direct ordering with door-to-door delivery is the start for the consumer, but how about the farmer who can now be located anywhere while plugged into his own retail customer base.

The Present is not the Past

Figure 2.

"What does it take to save a bleeding-heart?"

April 19, 2014 by Grace and Keren.

Deforestation illustrated from 1900s (70%) to 2010 (6%).

Rapid Island-Wide Survey of Terrestrial Fauna and Flora on Mindoro Island, Philippines Map of Mindoro Island shows the successive decline of forest cover from 1900 (70% forested) to 1998 (22% forested). From: “Rapid Island-Wide Survey of Terrestrial Fauna and Flora on Mindoro Island, Philippines”, (With additional notes on the results of the fauna and flora inventory of selected priority areas for biodiversity conservation in Mindoro Oriental Province) Final Report, 1999 Prepared by Juan Carlos T. Gonzalez, Andres Tomas L. Dans and Leticia E. Afuang

Is the Inconvenient Truth so Apparent

Figure 3. From "an inconvenienttruth, A Global Warning"

Carbon dioxide or CO₂ for those readers, who were born last century, has two meanings, the first is the one that we learned when in high school: that of one carbon atom and two oxygen atoms and we learned it to being essential to life. Later in 2006 we learned it to be an atmospheric pollutant or Green House Gas (“GHG”) that caused Global Warming and our children or grandchildren have learned only that definition. How did this perceptual change occur so quickly? A national political figure made an award winning film that put fear into our hearts when he portrayed the end of the Earth, as we know it, was happening before our eyes which was being caused by this

same GHG or CO₂.

Another Viewpoint

Figure 4. Sherwood Idso's living graphic as depicted in: NASA: Carbon dioxide

fertilization greening Earth, study finds Anthony Watts / April 27, 2016

Agroforestry is reforestation. It is utilizing biodiversity, which supports the inherent development of agricultural biologicals. These solutions are marketed through community based interfacing that uses the Internet to obtain orders with shipping and handling paid for by each retail customer, individually. This organic and ecological agricultural system discourages the use of synthetic and chemical fertilizers, why, because it can; which is a good thing, probably. The plant growth thrives on upwards of 2,000 parts per million (“ppm”) of CO₂, another good thing, and again we must say probably, when considering that below 250 ppm all plant life in the world begins to perish. Average levels of CO₂ in our atmosphere are presently at around 400 ppm.

The Learning Institute for Growing and Selling Food

Figure 5. “How To Ensure You Are Learning the Right Thing”,

Published on February 3, 2017, Tapiwa Matthew Mutis

Objectivity learning considers both sides of issues and listens to each with enthusiasm and respect, hopefully. The student presents his plan, studies the truth and takes away from the learning experience a personal knowledge set which plays into how the student implements his plan to grow crops and market them, probably. This might be the seed to innovation that respects Mother Nature and makes reforestation common place, certainly. (www.hilltopmoringafarms.com)

Equity Partnerships in Sustainable Reforestation at "Hilltop", a Series #06

2017-04-24T14:30:00.000+08:00

Money Matters

Making Money Comes First

Have you heard these: “Do you have a business plan?” “What is the capital investment?” “When is the return on investment?” “How much is the ROI?” “Who is the competition?” “Have you ever done this before?” “Why hasn't it been done before?” The questions seem to go on and on no matter who the prospective funder might be. They continue until the little guy with the winner of an idea gets stumped and can no longer answer, except his gut tells him that it will work and even after being turned down he presses on to success.

Investors want a sure thing that is proven by the marketplace. Tweak the existing, twist it and repackage it and it will get the funding for a hefty fee that goes to the funder along with control of your idea, company and control, as any funder thinks it should receive. But who needs all of that other than the truly desperate who wants to continue with the existing paradigm?

Your Winning Idea

Do not compromise on your winning idea, but do make certain that you measure the market, determine what it is, how much and for what price you need to sell in order to make your cost and profit, and your ultimate goal. Then scale down and down and fund it yourself through cash flow. Once you have cash flow, however slight, positive or negative, you have a business. Tweak it so that the flow becomes positive and then manage it so that the flow becomes stronger.

International Market Place

If the market is so many billion people located around the world then scale back to a few people living locally or in the first village, municipality, city and create that cash flow. Make the formula for success workable, doable and profitable. Scaling up, if planned, is a piece of cake.

Profit Sharing

Divide your income into 20% shares. 1) The landowner partner
gets a share. 2) The project gets two shares (40%). 3) Expansion gets a share, and 4) you get a share. If you cannot pay yourself the share that you have earned then your formula for success is off track and requires immediate tweaking.

The New Paradigm

Choose a winner, not a looser. Remember Albert Einstein’s definition of stupidity: “Repeatedly doing the same thing while expecting different results.” Choose the next paradigm, not the traditional one which is being challenged regularly and its technological changes are pressuring society. Why place your idea onto a platform that is already a dinosaur? The common denominator for a new paradigm is to create as close to a neutral carbon footprint as possible. Stick with this premise and what you build will last for generations to come while many of the “big boy” industries will fall around you. Technology disruption is like never before, every two years or less…choose carbon neutral and succeed in the long run, generally speaking.

Negative vs. Reality

“There is no more land.”
“The world’s population is growing too much.”
“We cannot or will not be able to feed the world’s population.”
“There is not enough fresh water anymore.”
“What happens when a comet strikes the earth and there is a catastrophic event?”
“Climate change, climate change, OMG climate change, what do we do?”

Throughout Much of the Third World

We have more land than you can shake a stick at. We have more freshwater than you can reasonably use. We have as much sunlight as is necessary and more. We have fresh warm air, really fresh. We are secluded but accessible both physically and through cyberspace. Our carbon footprint is nearly neutral. The community sings songs on holidays, dances in the streets and during the work days the workers remain within the community. Our production is sold electronically, produced locally, packaged locally, transported efficiently to the nearby airport and shipped directly to the consumer, wherever. Cash flow matters. Another farm, another one, again and again. How can this be?

Global Warming or Climate Change

The United Nations set a goal of decreasing the rate of increase in Global Warming to less than 2 degrees centigrade by 2020. Whether the goal will be met or not, very likely not, is not the following point. It is that the scientific community that understands what all of it means represents a few thousand souls out of more than seven billion people, making the scientists, as a learned body, is statistically insignificant, although arguing otherwise. The scientists do not have consensus and are arguing amongst themselves to the extent that the UN has changed its emphasize away from Global Warming to Climate Change.

No doubt that the scientists are well intended and able to take complex subjects and make phenomenal results, however, mitigating climate change is bigger, much bigger than a statistically insignificant percentage of the population can be expected to achieve when to the rest of the world it matters little, if not at all.

However, look at a statistically significant group, the farmers of the tropical Third World. They actually have nearly no understanding whatsoever of the United Nation’s goal but show them how to make money and watch the results. Even if out of that huge, gigantic and biggest ever demographic population only a few thousand accept how to make money using a near-carbon-neutral process what a significance that would be. It might even lead to replication by more people who want to join the new paradigm, and the combined results might be significant as well.

Reforestation for Money

If the example for making money is reforestation by using carbon neutral methodology, funded by cash flow, the resultant growth of the trees may even mitigate climate change.

AGROFORESTRY, REFORESTATION AND AFFORESTATION AND DEFORESTATION

The United Nations supports several programs that have to do with AGROFORESTRY, REFORESTATION AND AFFORESTATION AND DEFORESTATION.

YET TO COME

The UN understands its own concepts, perhaps, but for certain the general population of the world's farmers does not. An objective teaching approach may educate across demographic lines. See what appears in the next of this series:

"The Future is here, what is it?" which explains that "The Learning Institute for Growing and Selling Food" using the new paradigm may be a solution to clarifying environmental confusion.

PARADIGM SHIFT to Agroforestry via 'PROJECT 100,000'

2016-07-13T14:55:00.000+08:00

1 'Project 100,000'

Take a tree that can produce a profitable raw material, its leaves, within six months after germination and can sustainably produce five harvests per year for the next fifty years, plant it along with 99,999 more on 10 hectares of locally negotiated farmland, pay the local farmers for their loss of income that they would have earned if growing rice, pay local community residents to provide the necessary labor, harvest the leaves, produce the product, sell the product, share the income after costs and see how many neighboring communities want to do the same. One hundred thousand new trees in each of 42,000 barangays equal more trees planted and growing than any other project ... 4,200,000,000.

Figure 1. The painted strips over the photograph depict what would be strips of planted Moringa oleifera trees. Each strip is 50 meters wide and on this overlay their length totals more than 2,000 meters. Two strips are separated by the irrigation ditch. If we extend two strips for 1,000 meters that represents 10 hectares of land. It often is the least desirable rice land to the local farmer and therefore negotiating its rental is very feasible. All-in-all about 20 farmers are to involve their respective piece of land in Project 100,000 which gets its name by the sheer number of trees planted on the ten hectares or 10,000 per hectare times 10 hectares.

2 Some Specifics and Costs – Project 100,000 (“P100K”)

Tanyag is one of seven barangays (villages) that comprise the municipality of Calintaan in the Region of MIMAROPA (IV-B), Province of Occidental Mindoro. Calintaan’s population is more than 30,000 and its land area is 382.50 km² or 38,250 hectares with a density of 7,800 hectares. About 30,450 hectares of farmland, mostly rice. Tanyag has about 900 families mostly living within the barangay proper. Each family averages five and that amounts to a population of about 4,500. The cultivated rice land exceeds 2,000 hectares. ‘Project 100,000’ utilizes ½ of one percent of the cultivated land within Barangay Tanyag.

2.1 The Cost to Rent 10 Hectares of Riceland – P100K

The average net income to the rice farmers is Php 2.7m² per season and there are two seasons per year in Tanyag so Php 5.4m². Ten hectares of land is 100,000m² or Php 540,000 ($12,000) per year.

2.2 The Cost of Land Preparation – P100K

The trees require the same kind of soil as is needed for rice, however, it must stand above the rice area so that the soil drains. The trees do well in dry weather and excel when irrigation channels water through the root systems without backing up and becoming standing water. Periods of drought are actually welcome. Preparation of the planting rows is a simple matter of using a tractor with a rototiller that is operated by a competent and experienced operator. Three days of operation at a daily machine cost of Php 1,000 and a daily operator cost of Php 350 for a total of Php 4,050 (US$ 90.00).

2.3 The Cost of Irrigation – P100K

The existing irrigation system is made accessible simultaneously with the land preparation process. The monthly access fee paid to the barangay is Php200 or Php 2,400 per hectare per year for a total of Php 24,000 (US$533.33).

2.4 The Cost of Propagation – P100K

The cost of Seeds (Php 8,100), soil (Php 10,000), water (Php 4,000) and labor (Php 13,500) for 110,000 (10,000 mortality) quantity total Php 35,600 (US$ 791).

2.5 The Cost of Bagging the Seedlings – P100K

Banana fiber from the ‘trunk’ are utilized to make the bags for the seedlings when removed from the seed bed. The bags are of course biodegradable containing magnesium and iron which is used by the seedling as its young roots push through the bottom of the bag within a couple weeks following planting. The Demo Farm has a sufficient supply of banana trees for this purpose. (Note: Banana trees need to be cut after they fruit and this process makes way for the new buds that replace the cut tree.) Each banana tree trunk has enough layers to supply 200 bags. The labor cost associated with this exercise is Php 13,500 (US$ 300)

2.6 The Cost of Planting – P100K

The cost is broken down into three segments of 33,333 per year for 3 years. Per segment: Five laborers (Php 180 x 5 per day for 26 days = Php 23,400) and one supervisor (Php 350 x 26 days = 9,100) totals Php 32,500 (US$ 722). The entire 100,000 involves three years and 10,000 replacements to cover mortality, thereby the project total is Php 97,500 + 10% = Php 107,250 (US$ 2,383).

2.7 The Cost Maintenance – P100K

Land care, mulching, organic fertilizer preparation, application, problem identification and solving for 33,000 growing seedlings in their first year requires the attention to detail of five labor and one supervisor for a period of seven months. This cost is repeated for year-two and year-three. Thereafter the same team can handle the entire 100,000 since per unit maintenance of the older growing trees is reduced considerably. The labor cost is Php 23,400 per month for seven months or Php 163,800 per year for three years is Php 491,400 (US$ 10,920). The cost of mulching, organic fertilizer and biochar preparation is one peso per tree per year or year-one Php 33,333, year-two Php 66,667 and year-three Php 100,000 or a total of Php 200,000 (US$ 4,444). The total for three years is Php 691,380 (US$ 15,364).

2.8 The Cost of Security – P100K

On-site security via live-in caretaker (ordinary and customary). Kubo (living shelter), Php 10,000. Utilities and food per day is Php 250 times 365 days = Php 91,250 for three years is Php 273,750 (US$ 6,083).

3 More Specifics and Costs – Harvesting

One hundred thousand producing trees all harvested once per month require labor to pick the equivalent of 25 grams of wet matter (leaves) from each of 3,333 trees per day in Y-1 and increasing accordingly in successive years, 2 and 3.

3.1 The Cost of Harvesting

In Year-1 Team 1, five labor at 180 per day and one supervisor at 350 per day for 30 days times seven months are needed or Php 262,500. Year-2, Team 2 is added or Php 525,000 and in Year-3, Team 3 is added for a total of Php787,500. The harvested wet matter is walked to the stand-by t trailer pulled by the farm tractor (Php 300,000) for a total of Php 1,087,500 (US$ 24,166).

4 More Specifics and Costs – Processing

The processing requires washing, drying, separating leaves from stems, quality assurance, pulverizing into powder, bulk packaging and the initial inventory storage or holding area. The wet matter is converted into bulk packages of 5kg each and placed into inventory.

4.1 The Cost of Processing - Step 1.

The wet matter arrives at the facility where it is off loaded and placed on an automated washing line to remove all dirt and other possible contaminates, equipment cost is Php 200,000. Water cost is mostly associated with pumps and pumping amortized over three year period, Php 290,000 (US$ 6,444).

4.2 The Cost of Processing - Step 2.

The drying involves the leaves being placed onto stainless steel screens that slide into a holder that has slots enough to hold 20 screens. The screen holder is one square meter in surface area, as are each of the screens. The holder is on wheels so that it can be moved and guided into the drying room and placed next to other holders already full of wet matter leaves. The drying process is proprietary technology, however the quantify computation is not: 50 grams wet matter per screen for the morning harvest requires 834 screens requires 41 holders or Php 540,000. The drying room is 6.5 meters by 6.5 meters with proprietary drying technology at a unit cost of Php 450,000. In Y-1 the cost is Php 990,000 plus Y-2 and Y-3 or Php 2,970,000 (US$ 66,000).

4.3 The Cost of Processing - Step 3.

Pulverizing equipment consists of three units. The cost of each is Php 210,000. All three units total Php 630,000. The commercial bag sealer is Php 100,000. The cost of the bags for three years is Php 108,000 and the combined cost is Php 838,000 (US$ 18,622).

4.3.1 Production Offset

Production in Y-1 is 833,325 grams per day of wet matter or 174,998,250 grams in 210 days which is 174,998kg and the pulverized dry leaves are 17,500kg in Y-1; 35,000kg in Y-2 and 52,500kg in Y-3; requiring 1,500 5kg, 3,000 and 4,500 respectively Zip Lock heat sealable and metalized bags at a cost of Php 18,000 in Y-1, Php 36,000 in Y-2 and in Y-3 Php 54,000 for a total of Php 108,000 (US$ 2,400). The total three-year production income is 105,000 kg @ Php 1,200 per kg = Php 126,000,000. The total three-year production income is 105,000 kg @ Php 1,200 per kg = Php 126,000,000 (US$ 2,800,000). Intercropped turmeric 33% of Moringa production, Y-3 Php 42,000,000 + Php 126,000,000 = Php 168,000,000 (US$ 3,733,333).

4.4 The Cost of Processing - Labor

Labor is above entry level. Three technicians at 250 per day and one supervisor at 350 per day for 365 210 days or Php 231,000 (US$ 5,133).

4.5 Facility - Processing

The processing portion of the overall facility is housed in the basement floor of the five story Institute. The building is constructed on a hillside and therefore the basement level actually opens at the far eastern end onto what would seem to be ground level, which is the receiving and delivery dock. The number of square meters of interior, first class sanitized and climate controlled area is 45m² for receiving wet matter and washing, 126m² for drying, 45m² for pulverizing and 45m² for inventory holding. The total square meters is 261m². The cost is Php 11,934 per square meter or Php 3,114,774 (US$ 69,217).

5 More Specifics and Costs – Marketing, Sales and Shipping (“MSS”)

The department for Marketing, Sales and Shipping consists of seven fully equipped and trained personnel with the assistance of an outside e-commerce consultant.

5.1 The Cost of Personnel, MSS - Equipment and Consulting/Training

One manager (Php 600/day * 288 days = P172,800), one market specialist (Php 500/day * 288 days = Php 144,000), two sales representatives (Php 400/day * 288 days = Php 115,200), one shipping supervisor (Php 500/day * 288 days = Php 144,000) and two assistants (Php 350/day * 288 days *2 = Php 201,600). Equipment: four business laptops with Netware, Internet, Wi-Fi (Php 240,000). E-commerce consultant (Php 40,000/mo. * 12mos. + 1mo. Training = Php 520,000); Php 1,537,600 (US$ 34,168).

5.2 The Cost of Electronic Commerce, MSS - Applications

Application services for filing, file management, storage, storage retrieval, security and customer service Php 200,000 per year, 3 years Php 600,000 (US$ 13,333)

5.3 The Cost of Customer Services, MSS - Repeat customers

Repeat customers will be encouraged to join auto-ship programs and will receive bonus gifts of new products to try, such as turmeric and others as they come on line. The demo-farm is growing nearly 30 nutritious and complementary leaf and root flora. One percent of Hilltop Moringa earnings is devoted to retention of its customers through bonus programs or about Php 1,260,000 (US$ 28,000).

5.4 The Cost of Advertising, MSS

AdSense and similar social network advertising systems are employed with an annual budget of Php 240,000 * 3 years = Php 720,000 (US$ 16,000).

5.5 The Cost of Sales staff, MSS

The sales staff is incentivized with a 5% first time sales commission and a 2% auto-ship, auto-pay plan bonus which can become substantial. Certain performance standards apply for continued qualification or about a cost of 1% of total earnings, Php 1,260,000 (US$28,000).

5.6 The Cost of Auto-pay plan, MSS

The support application for this system will be provided through outside consulting. The system will increase repeat sales and minimize per capita cost for maintaining repeat customers. The outside consulting budget is a one-time expense of Php 100,000 and a maintenance fee of Php 10,000 per month or Php 120,000 per year with a three-year cost of Php 360,000 (US$ 8,000).

5.7 The Cost of Shipping Team, MSS

Actual shipping and handling is generally covered by the consumer who pays this under separate charges, a routine practice in retail sales. However, the Warranty Program assures customer satisfaction and is an actual cost. The presentation of products delivered is essential to guaranteeing satisfied customers. The product and its quality are excellent but without following excellent shipping schedules and having the items delivered in properly representative packaging can dampen and even loose otherwise satisfied customers. To that end training and incentives are provided to the shipping team. One percent of sales is budgeted for this purpose or Php 1,260,00 (US$ 28,000).

6 Demonstration Farm and Agroforestry Institute and Costs (“DF”)

The demonstration farm rests on 8.2 hectares that are located on top of a hill that rests about 150 feet above the surrounding rice land. It is technically classified by the government as forest, however, the sparse secondary forest offers some indigenous species of trees, some of which are medicinal, but also offers excellent soil for the growth of more than 30 species of fruit, nut, sap and medicinal flora; mostly trees.

6.1 The Cost of the Institute - DF

The paradigm of agribusiness that began around 1948 and has grown to what is now the largest industry in the world is actually counterproductive to achieving good health while feeding billions of people each day. Agroforestry, its attributes, benefits and comparative ease of sustainable operations must be advertised, presented and the idea sold to those anxious and frustrated farmers waiting to adopt the new systems or paradigm. Nurturing of those desirous must follow and be persistent until the new paradigm can stand alone at 7 percent of the farmers. If the base is 10,000,000 farmers then seven percent is 700,000 farmers. That number is perhaps overwhelming so in order to achieve the seven percent we look at the number of barangays which is about 42,000 and seven percent is 2,940. We are to reach out to each barangay expecting to attract only seven percent or 2,940 representatives to become students at the institute. Recruitment is mainly the effort of public relations, word of mouth and follow-up. The personnel costs to achieve this are enumerated elsewhere in this plan, however the information media, printed material and correspondence cost is Php 100,000 per year x 3 years = Php 300,000 (US$ 6,667).

6.2 The Cost of the Course of Study - DF

The purpose of demonstration farm is to provide the student with hands-on experience, state-of-the-art science that deviates from agribusiness and supports biodiversity, sustainability, organic uses and production, cost savings, achievement of nutritional highs, achievement of high mineral content, fiber content, plant protein and other attributes of agroforestry. The cost for presenting the course of study will be Php 450,000 for each of three instructors, their travel, lodging, food, training materials and on-site instruction. The total cost is Php 1,350,000 (US$ 30,000).

Expert instructors from around the world will be guest lecturers, presenters and hands-on demonstration. The course of study will consist of ten areas and the period of instruction will be over a seven day period with students residing at the institute.

6.3 The Cost of Providing the Instructors and their Course of Instruction - DF

Each class will have twenty students and there will be two classes in training on a staggered basis. Each instructor is to present to each class separately. During the course of the week 40 students. In order to achieve the seven percent of 2,940 barangays (assuming 100% success) 74 classes are required or over the three-year period 25 per year or a little more than two classes per month. At Php 1,350,000 per course times 25 per year is Php 33,750,000 and over three years the 74 classes cost is Php 101,250,000 (US$ 2,250,000).

6.4 The Cost of the Logistics of Housing for Students - DF

Within the hotel is situated the air-conditioned dormitory that has 50 single rooms (2.5m x 3m or 7.5m²) configured with a single bed, wardrobe, study table and CR (including hallways the area is 500m². Wireless Wi-Fi is available throughout. The lounge, presentation area and two first class rooms for visiting instructors are located elsewhere on the same floor for a total of 1,000m². The common area includes hallways of 2.5m² per room or 125 m². The complete cost per m² is Php 11,934 x 1,000 m² = 11,934,000 (US$ 265,200).

6.5 The Cost of feeding the students - DF

Every attempt is made to supply food from what is grown on the demo-farm and through the nutritional and food production laboratory portion of the course of study. Each student will learn how to make nutritional non-wheat flour and numerous other ingredients from the organic farm production, including mozzarella cheese made from the demo-farms own caribou diary. The culinary staff of one chef at Php 12,000 per month and three sew chefs at Php 6,000 per month each for a three-year total of Php 1,080,000 (US$ 24,00). The daily food allowance per student to cover the cost of staples is P50; 50 students per day for 180 days per year x 3 years = Php 1,350,000; 900 students, per capita: Php 2,700 (US$60). The total of feeding is Php 2,430,000 (US$ 54,000).

6.6 The Cost of the program of learning - DF

The 2,940 students require learning materials and presentations that on a per capita basis cost Php 34,439 (US$765), which is included in the cost of providing the instructors and instruction materials.

6.7 The Offset Cost - DF

The offset may be funded through sponsorship, government programs and barangay participation. The cost of the offset is attributable to two full-time marketers in search of grants, sponsors and funders. Each marketer is paid Php500 per day for 288 days or Php 288,000 per year for three years: Php 864,000 (US$ 19,200).

6.8 The Cost of advertising, recruiting - DF

Advertising for the Institute is done through seminars held at the seat of government in the NCR in conjunction with ongoing and regularly scheduled government training programs. Simply, a program presentation table at each seminar registration is sufficient to make the Institute and its programs known. The Technical Education and Skills Development Authority (TESDA) offers program evaluation and when accepted the TESDA may sponsor all or a portion of the tuition cost for Filipino students attending. Submission of candidate names to the Institute for its evaluation of the candidate’s qualifications is part of the recruitment process. A possible recruit must pass a screening to determine the likelihood of successful after action project development in the recruit’s home barangay. This advertising and recruitment process is outsourced at a success fee of Php 1,000 per accepted recruit. The recruitment target is 2,940 to achieve the 7% critical mass, however each year the target is 600 students, a possible annual fee of Php 600,000 or for three years Php 1,800,000 (US$ 40,000).

6.9 The Cost of after action program follow-up - DF

Each student completes the course and then returns to his/her barangay, mostly at another province. The graduate possesses knowledge learned from the Institute and a “play book” that he/she produced during the course of study. The play book specifies the project that the graduate will pursue once back at his/her barangay and all of the feasibility questions have been answered and contained within the play book. This cost is specified in Section 10.2, The Cost of Achieving Critical Mass.

6.10 The Cost of incentives to establish business in the student’s own barangay as its representative - DF

Each barangay is to be programed to commence with its own ten hectare program over a period of four years. The initial year involves preparation through its nursery and propagation of trees to be used in the planting scheme. Each play book will be written to adapt to the particulars of the student’s barangay. Each attending student must have title to land and or property or access such that it is conducive to establishing his credibility and supporting the likelihood of his succeeding in achieving the goals of his play book. The follow-up staff at Hilltop Moringa Farms will consist of one manager, three field representatives, two clerks and a marketing specialist and assistant, a computer network and communications capabilities to follow through. The manager will oversee the follow-up program and dispatch the field representatives to make appropriate field visits. As part of the recruitment process the recruit will recommend leads for possible sponsors to fund and oversee the development of the play book in the respective barangay. The marketing specialist and assistant will close the leads and formalize the relationship by memorializing it. The cost of the staff and the program is: manager, Php 40,000 per month; three field representatives Php 20,000 per month; communications network Php 100,000; times three years: Php 300,000 plus staffing: Php 2,880,000 totaling Php 3,180,000 (US$ 70,666).

6.10.1 Income Derived - DF

Income derived from the subsequent business as developed in the barangay may financially benefit Hilltop Moringa Farms which offers its marketing and sales leads at a commission. Start-ups normally take three years before there is positive revenue. Therefore, only commencing in Y-4 is a 3% commission revenue to be expected by Hilltop Moringa Farms or Php 1,260,000 per 42 barangay commencing in Y-5 and doubling in Y-6, Y-7 and Y-8. The one-year computation of the estimated royalty in Y-5 is Php 52,920,000 (US$ 1,176,000).

7 the Institute’s congruent hotel (“H”)

The purpose of the hotel serves to support the Institute. A parallel example might be the perfume manufacturing industry in France. Many of the small operations supplement their income and offset expenses by designing the facility to be conducive to tourism, visitors and the curious; all for an entrance fee. The Hilltop Moringa Farms Institute and Demonstration Farm is physically situated at the foothills of the central mountains of Mindoro. The view is magnificent and constantly changing throughout the day. The weather is excellent and the air is pristine. It is quiet and pollution free. Spending a two or three-day stay while both touring the facilities and the grounds, and trekking either on foot or on horseback into the lower levels of the central mountains is a unique attraction. The Institute is constantly looking for public support and the hotel enhances the possibilities of soliciting contributions.

7.1 The Cost of the hotel - H

The hotel comprises one complete floor (1,000m²) of the five story facility. Each of 50 deluxe rooms is 3.5m x 4.5m or 17.5m² for a cost of Php 11,940,000 (US$ 265,333).

7.1.1.1 The offset of the collateral hotel income - H

Deluxe rooms are nowhere to be found in all of the province of Occidental Mindoro. There are located within a 30 kilometer radius approximately 10 hotels, lodges and “resorts”. None of which would qualify for a three-star hotel rating and the theme of each is either sea-based or urban business stays. The highest priced rooms are approximately Php3,000 per night at a beach lodge. This hotel is a strong 3-star with excellent accommodations, food, recreation and spa facilities and the room price, double occupancy at Php3,000 per night or Php4,500 single; Php 1,350 per extra, averaging Php 5,000 for 3 nights per week, 52 weeks per year = Php 39,000,000 per year for three years: Php 117,000,000 (US$ 2,600,000).

8 the Demonstration Farm Grounds and the Institute and the Cost for Maintenance and Staff (“DFMS”)

The Demonstration Farm Grounds consists of 8.2 hectares and More than 10,000 producing trees of one sort or another. The grounds require irrigation, general maintenance as in caretaking in order to keep all aspects of the grounds in tip top operating condition. The Institute is a facility that houses both living and knowledge components for students, outside visitors and visiting VIP Instructors. The facilities require all of the maintenance expected of any first class facility that treats all of its guests as first class visitors.

8.1 The Cost of The Demonstration Farm Grounds Maintenance - DFMS

As a generalized approach to budgeting a staff of 10 caretaker personnel led by one supervisor and all appropriately equipped. The cost of the equipment and its maintenance is estimated at the same annual labor budget for 365 days per year so manning is so calculated and will require more individuals in order to maintain staffing levels throughout. The supervisor’s pay rate is Php 400 per day and the caretakers average pay rate is Php 200 per day or a total of Php 876,000 plus Php 876,000 for equipment of a total annual cost of Php 1,752,000 * 3 years = Php 5,256,000 (US$ 116,800).

8.2 The Cost of the Institute Maintenance - DFMS

The institute consists of the five-story modern facility that houses dormitory, hotel and VIP units on two of the floors that also provide for resource learning, entertainment and eating. On the other three floors the primary theme is product processing, manufacturing, packaging, inventory and shipping. It too is configured for receiving both training and general visitor audiences. The maintenance is expected to be first class in nature for the visitors and primarily sanitary and functional for the processing operations. A staff of two personnel per floor and one supervisor are required on a manning basis of 365 days per year. Their equipment is budgeted at 1/10^th of the personnel budget. Manning is Php 876,000 plus Php 87,600 for equipment * 3 years = Php 2,890,800 (US$64,240).

8.3 The Cost of the Institute’s Full-time Professional Staff and Admin Staff - DFMS

Other than the individuals already accounted for in sales, marketing and field operations regarding the recruitment of students and the follow-up of their projects the lodging, food and beverage and housekeeping aspects of the lodging require one supervisor and three housekeepers, food and beverage has been addressed supra, and the administration requires one general manager who also oversees operations, an assistant and three clerks. They see to the everyday requirements of hotel and restaurant management, including marketing, sales and guest relations. The institute also has a manager and a staff of instructors, data personnel, technical personnel and public relations personnel; 3-year cost of P3,000,000 (US$ 66,667).

9 Hilltop Moringa Farms (“HMF”)

The Hilltop Moringa Farms is the tradename and name of the business entity which has as its goal to Reforest the Philippines, eradicate poverty through agroforestry and help mitigate climate change. Demonstration of how to make money growing trees is the key to achieving the reforestation segment of our goal. Of course the eradication of poverty through agroforestry aspect does not expect to reach out to those living under a bridge within the core city of Manila, but it does expect to reach out to each community or barangay that participates in having its own productive agroforest. With seven percent success we believe that critical mass will be achieved and the expansion of profitable reforestation will expand and self-perpetuate as is inherent when achieving critical mass.

9.1 The Cost of Processing, Manufacturing, Packaging, Inventory and Shipping - HMF

Generally, the cost of producing a finished product ready for consumer consumption is Php 600 per kilogram. Project 100,000 has 33,000 productive trees each year for three years for a total of 100,000. The production per year of each tree is one kilogram of finished product, therefore the cost is in Y-1: Php 19,800,000; in Y-2: Php 39,600,000 and in Y-3: Php 59,400,000; a 3-year total of Php 118,800,000 (US$ 2,640,000).

10 Facilities Beyond the Five-Story Institute and The Cost – (“FB”)

The main office, executive house, visiting VIP apartments, cottages and amenities are designed to be at the highest point of the Hilltop Moringa Farms complex. This is the business development center all business partnership leads and prospects will meet and discuss presentations for the purpose of indoctrinating and negotiating as to formalized and finalize partnership arrangements, sponsorships, scholarships and financing plans for achieving the program’s Reforestation Critical Mass. The cost of building, staffing and operating one executive residence comprising 500 m², four VIP apartments co-located at the executive residence comprising 80 m², four cottages 100 m² for a total of 680 m² @ Php 11,934 = Php 8,115,120 (US$ 180,336).

10.1 The Cost of Support Personnel - FB

The institute’s administrative staff includes the main office, executive house, visiting VIP apartments, cottages and amenities. Additional staff includes culinary, housekeeping, facility maintenance and grounds keeping; nine personnel at an average daily salary of Php 200 or Php 1,800 x 365 = Php 657,000 x 3 years = 1,971,000 (US$ 43,800).

10.2 The Cost of Achieving Critical Mass - FB

The expenses associated with recruiting students, teaching them and providing the Demo-farm and the Institute and even the follow-up field work with graduates of the program have been computed throughout this report/plan. The cost, however, of successfully achieving seven percent of the 42,000 barangays or 2,940 barangays that each grow out 100,000 trees that are the basis for their own Project 100,000. Hypothetically and for ease of explanation each of the successful barangay is congruent with the next one, so-on-and-so-forth. In such an ideal case every 10^th barangay would provide the manufacturing capabilities. The marketing, sales and shipping coordination may be handled by Hilltop Moringa Farms in Tanyag. The three-year cost of Php 118,800,000 (US$ 2,640,000) would therefore be spread over each group of 10 barangays for an average per barangay cost of Php 11,880,000.

10.2.1 The Production Offset

Five executive cottages and four VIP apartment units have a per night rental value of Php 5,000 double occupancy with a 30% additional charge for each extra bed or a 50% of the full rate if single or Php 7,500. The average per night rental is Php 9,000 for a total of 2 nights per week or 104 nights in Y-1 times 9 units, times Php 9,000 = 8,424,000 times 3 years = Php 25,272,000 (US$ 561,600).

10.2.2 Slow Start Alternative

The recruiting process, sponsorship and follow-on assistance when targeting the initial ten barangays that can bring their own funding to the program, can be designed for each to perpetuate the development of other barangays and the financial incentive is calculable from the production offset. This model allows for the rapid expansion of the program to achieve Critical Mass at the lowest possible centralized cost by enabling profitability through each successful barangay investing in their own partner barangays.

The demonstration farm with its components and training institute in addition to the thousands of producing trees at the farm also in addition to the Project 100,000 Moringa oleifera trees, intercropped with turmeric, is US$6.75 million over the first three years with a revenue for the same period of US$6.89 million. In the out-years the farm receives its 3% royalty from its institute’s success partners, potentially more than 2,400 of them developed over a couple of decades.

11 What’s Next … Revenue, Distribution, Replication, Diversification and Reforestation

Agro forestry Demo Institute in the Philippines for Universal Use

2016-07-03T11:43:00.001+08:00

1 An Impossibility made Possible, actually Feasible

Since the 1980’s development banks took on the task of funding reforestation projects. In comparison commercialized deforestation existed for more than a century and those doing it reaped large financial incomes by selling the logs, mostly wholesale and in bulk. This practice occurred throughout the tropical world. Various governments, including the Philippines, have set ambitious goals to reforest areas of deforestation. The projects of the 1980’s did not prove successful or of any serious consequence. The most current projects are far behind their goals, which even if met, would not measure up to appreciable progress against the former deforestation. Government at the lowest level, barangay (village), in cooperation with private endeavors can teach, through demonstration, farmers how they can make money from living trees that they planted. This behavior is contagious and it is actually feasible to expect it to spread from barangay to barangay encompassing all 42,000 barangay in the Philippines within fewer than two decades.

1.1 The Impossible - Reforestation in the hands of Government

An inherent characteristic of development banks and agencies is one of the bureaucrats being on their career path. It intertwines with sister agencies allowing them upward mobility each time they resign from one agency in order to hire on with the other, and in a couple more years in occurs again, often times the bureaucrat returns to the original agency however at a much more senior position. Why is this critical to reforestation, a process that takes more years than are available to the same project manager who commenced the project; because the bureaucrat is seldom held accountable for long-term results, only the short-term that can be measured during one’s short tenure? An example is the comparison of time involved with the planting of a seedling and the evaluation of the growth of the resultant tree. Accountability often occurs for evaluating the success of planting a forest, however seldom occurs for evaluating the decades-long period required for evaluating the actual survival and growth of the same forest. Most often the seedlings are counted fairly soon after their planting but seldom are they counted a decade later when they should be trees, but most often have died. When such audits are conducted the results a generally dismal, but unfortunately the original project manager is already quite senior as an executive in a sister agency. Accountability lacks.

1.2 The Philippine Government's Contemporary Effort

NGP Annual Accomplishment, 2011-2015Q1 reforestation was observed with the implementation of the National Greening Program (NGP)^[1].As of March 2015, 1.01 million hectares or 85 percent of target forest area have been planted with around 602.7 million seedlings. However, the number of seedlings planted is way below the target level. The program aims to plant 1.5 billion trees or about 1,000 trees per hectare. At present, only around 593 trees per hectare have been planted.

[1] The NGP is a massive forest rehabilitation program of the government established by virtue of Executive Order No. 26 issued on February 24, 2011 by President Benigno S. Aquino III. It seeks to grow 1.5 billion trees in 1.5 million hectares nationwide within a period of six years, from 2011 to 2016.

2 The Possible

Most people have heard the rhetorical training question, mostly given to sales students, that asks: “How do you eat an elephant?” Of course, the answer is simple: “One bite at a time.” When we can demonstrate to one barangay how to grow trees for profit the neighboring barangay leaders will request the same training, so on and so forth.

Philippine Forests At A Glance, June 2015, AG-15-01, Senate of the Philippines

2.1 Our IDEA

"Reforest the Philippines."

Everyone has had a big idea before, for instance John F. Kennedy had the idea of “Let’s put a man on the moon.” Later, the idea was detailed more in a concept which added “and bring him back safely.” Even more details surfaced when there was more thought put to the idea and finally a huge project was initiated around a brand new agency, the National Space Administration (“NASA”). Well, the idea to “Reforest the Philippines” must be similar in approach as if the idea of JFK that took nearly a decade to achieve.

2.2 OUR CONCEPT is to make the IMPOSSIBLE not only POSSIBLE, but FEASIBLE

JFK had the budgetary might of the entire US government. The cost of reforesting the Philippines if done in the typical way would have a price tag about equal to fulfilling JFK’s idea. Of course such a price tag would immediately make this idea impossible, so we must change the funding source and the funding size. How can such a change be feasible?

How do we turn the light green (barren, 2015) into dark green (forest 2030)? There is a way that is inexpensive and effective, it is feasible.

3 FEASIBILITY

What follows are the hypotheticals of what make the growing of trees profitable for the everyday farmer on a sustainable basis and how to do that without government finance. What follows is worth reading and worth joining the effort to make it happen. Use your imagination for now and imagine ten million farmers, fewer than 250 in each barangay, sustainably growing trees for a living and as a result experiencing a First World standard of living and how this process gets started.

3.1 Imagine

Imagine that…

The Philippines has 42,000 barangay or small villages each comprising of more than 1,000 hectares on average. Each barangay has a spare 10 hectares, maybe not contiguous but arable nonetheless.

There is a tree that is very easy to grow, that every Filipino is familiar and that is already growing in nearly every one of the barangay.

One hundred thousand of this kind of tree can be planted on 10 hectares of barangay land and in order to achieve such a result only takes training.

With training each of the 42,000 barangay can plant and grow the 100,000 trees and the nation's greening program will add 4.2 billion growing trees to its statistics.

The tree produces highly nutritious and valuable leaves five times each year and the first harvest is within the first year of growth.

3.1.1 PROFITABILITY

Imagine that…

Each tree produces each year the equivalent of one kilogram of finished product.

The one kilogram of finished product sells wholesale for PhP1,200 (US$26.67).

The cost of producing one kilogram of finished product is PhP600 (US13.33).

The 100,000 trees each year produce 100,000 kilograms of finished product at a net earnings of PhP600 per kilogram (US$13.33) and a net of PhP 60,000,000 (US$1,333,333) per barangay.

The profits are shared five ways, equally (20%) and that the shareholders are:

The barangay, 2) The farmer families (av. 350), 3) The project, 4) The investors (members) and 5) The capital fund.

The projected shareholders groups each receive Php 12,000,000 (US$266,666) annually.

The farmers who provided the 10 hectares received out of the cost Php 5.4 per square meter or the equivalent of the net earnings from rice farming, plus each is part of their respective shareholder group receiving the profit sharing.

3.1.2 GNP increases: Php 2.5 trillion (US$ 56 billion) ADDITION TO THE GNP

Imagine that…

This all works, and

We multiply the results by 42,000 to see by how much the GNP increases: Php 2.5 trillion (US$ 56 billion).

· Just imagine... Could this really happen?

4 Project 100,000 Answers the Question in the Positive

The demonstration agroforest is part of the training institute to become the legacy of "Project 100,000".

THE IMPOSSIBLE IS REALLY POSSIBLE AND ACTUALLY FEASIBLE, more about this inside the next posting, "PARADIGM SHIFT via 'PROJECT 100,000".

Paradigm Shift, Agriculture : Agroforestry

2016-07-01T16:35:00.000+08:00

1 Compare

1.1 Agribusiness USA, Agribusiness Worldwide, US Military-Industrial Complex and Agroforestry

Agribusiness in the US is more than two times larger than the US Military-Industrial Complex. Worldwide Agribusiness is the world’s largest business at more than US$4T. Agroforestry is poised to sustainably increase its share of responsibility for feeding the world by shifting the growing and customer service aspects of Agribusiness over to Agroforestry on a steady climb for the next several decades. The baggage that Agribusiness carriers, such as all of the middlemen, the gargantuan supply chains, massive warehouses and distribution chains will be left behind since Agroforestry is organic, diversified, sustainable and capable of servicing its consumers directly from its community base by using e-commerce and piggybacking on the existing international courier services. Without the extra baggage of Agribusiness the cost to the consumer as a direct customer of Agroforestry may actually decrease.

2 AGRIBUSINESS

2.1 What is the Agribusiness Industry?

The Agribusiness industry includes businesses that directly engage in or directly benefit from agricultural activities. Businesses in this industry may produce agricultural commodities, buy agricultural produce or supply goods and services to farms and the agriculture industry. This industry focuses on the food-supply chain up to, but not including, the point of retail sale.

2.1.1 Industry Products

Crop and livestock farming; Food production; Agribusiness services; Equipment and other manufacturing; Food and supplies wholesaling

2.1.2 Industry Activities

Soybean and corn farming, Frozen foods; Beef cattle production, dairy cattle farming and meat processing; Margarine and cooking oil processing; Corn, soybean and wheat wholesaling; Dairy product and milk production; Farm supplies and farm equipment wholesaling; Fruit and vegetable wholesaling; Tractors and agricultural machinery retailing; Fertilizer and pesticide http://www.ibisworld.com/industry/default.aspx?indid=2004

2.1.3 Revenue of agribusiness (NAICS NN004) in the United States from 2009 to 2014 (in trillion U.S. dollars)

This statistic displays annual revenue figures of agribusiness in the United States from 2009 to 2014. In 2009, the revenue of agribusiness in the U.S. ranged at 1.7 trillion U.S. dollars. http://www.statista.com/statistics/296441/revenue-agribusiness-in-the-us/

2.1.4 Revenue of Agribusiness Worldwide

2.1.4.1 The World's Biggest Industry

Euromonitor International reckons the packaged food industry–including everything from pasta and cooking oil to canned and frozen foods–is worth almost $1.6 trillion. Meanwhile, the World Bank puts the food and agriculture sector at 10% of global gross domestic product, which, taking the bank’s 2006 estimate of about $48 trillion, would make the sector worth about $4.8 trillion.

http://www.forbes.com/2007/11/11/growth-agriculture-business-forbeslife-food07-cx_sm_1113bigfood.html

3 The U.S. Military-Industrial Complex

http://www.defense.gov/News/News-Releases/News-Release-View/Article/652687/department-of-defense-dod-releases-fiscal-year-2017-presidents-budget-proposal

4 Agroforestry

Agroforestry should slide into its realm the consumer demand for grown food. This shift is underway. The servicing of consumers becomes a direct responsibility of the producer who responds directly to the e-commerce generated orders of the consumer, one-by-one, on a repetitive basis wherever the consumer is on the global courier routes. An example that is certain to open the reader’s eyes is to examine one aspect of the agricultural matrix, which is its livestock. Please view this aspect before moving on to the explanation of agroforestry.

https://youtu.be/g1z1taw6yNw

Biodiversity is so Practical ... it is even Biodegradable

2016-04-01T05:55:00.000+08:00

Hilltop Moringa Farms

Moringa oleifera is the signature crop at Hilltop Moringa Farms in
Mindoro Occidental, Philippines. The purpose of the farm is to demonstrate a better way in the paradigm shift of agriculture to agroforestry.

Even a Sustainable Crop Requires a "Biodegradable" Start

After germination of the seed within the seedbed we watch the Moringa sprout grow into what will become a tree that produces a sustainable crop of nutritious leaves, seed pods and seeds for more that fifty years. However, we must first provide daily care and nourishment. We see it quickly turn into a seedling. We also know that very soon thereafter it will be time to remove the seedling from the seedbed and place it into a container, like a plastic bag, and transport it to the site where it will be planted permanently after it is removed from the plastic bag while exercising care to keep the soil and roots together in preparation for being introduced to a hole in the ground, covered, watered and nurtured for the duration.

The New Paradigm

The following pictorial with descriptions reflects only one aspect of the benefits of biodiversity. This is simply amazing. For years, as far back as memory permits, the planting process has been stymied by the ordinary and customary commercial use of non-biodegradable containers, the most popular of which is the black plastic bag that "pretends" to be biodegradable.

Hilltop Moringa Farms demonstrate symbiotic relationships of the more than 30 species of plants that support in one way or the other the signature plant, Moringa oleifera. Banana offers several minerals to the soil when included as part of the mulch that is made on the premises using biomass of several types. In this case the use is to make a biodegradable planting pot for Moringa seedlings that are ready for planting. Without this pot the seedling must be quite a bit older before being subjected to the harshness of permanent planting.

The inventor of this method is the man with his back to the camera. A fisherman by trade he is always thinking of a better way to make the never ending task of planting more seedlings a bit easier, simpler and more reliable.

Here is the finished item, the seedling that is snugly situated inside his insulated and nutrition-releasing planting bag which will go with him to the permanent new home. After a relatively short time Moringa will send its tap root through the bottom of the biodegrading bag but the moisture barrier sides will stay in tact for a longer period enabling the Moringa to be protected and to grow quicker than had it been contained inside the traditional sterile black plastic bag.

The bag in the making.

Tying of the bag with a banana fiber tie.

Finally, resting inside the planting hole awaiting the completion of packing soil around the bag.

Here is the video of the entire process.

Scientific Consensus, hmmm

2015-10-27T11:35:00.001+08:00

Is the science actually in?

Debating begins. Each of us

needs to individually reach out and search for the answers, independently.

Who are Debating Climate Change

The Intergovernmental Panel on Climate Change (“IPCC”) is now being debated by the Non-governmental International Panel on Climate Change (“NIPCC”).

The Common Denominator is not Science

There is Climate Change. The differences in scientific opinions are not as widespread as one might guess. The real differences are in how the science is reported to the ultimate reader, you and me.

The public worldwide has a new level of consciousness about Mother Nature and how mankind must consider itself and its behavior inherently in the best interest of Mother Nature which is of mutual best interest.

Do your own research about Climate Change, Global Warming, Global Cooling.

Read bibliographies and check them for credibility. You will be amazed.

Get back to the basics …

Do not believe everything that you hear or see, even if there is a “PhD” after the scientist’s name.

When you find factual information ask why it is, or in particular, why it is not included in governmental reporting.

Be aware, see that the IPCC is an intergovernmental panel and not a scientific panel while the NIPCC is a non-governmental panel.

Check for objectivity.

Is peer review really peer review? Your research may not or must not be superficial. You must become conversant through credible knowledge … now get started … start with Google if you need to be quick and simple

and go from there.

Easy Earn with Minimal Effort, High Returns

ALTERNATIVE FOOD SPRINGBOARDING ONTO EXISTING FOOD MARKET VIA www.com INTERFACING

2015-09-04T13:24:00.001+08:00

ALTERNATIVE FOOD SPRINGBOARDING ONTO EXISTING FOOD MARKET VIA www.com INTERFACING

A New Way for the World to Look at Feeding Itself

Making the Farmer a Retailer, Researcher Scientist and Nutritionist

An example of:

Idea

How we eat has changed, is changing and continues to change eventually affecting the largest market in the world for any product or service. Feed the world differently using heretofore unspoiled lands that are more strategically located to modern emerging markets while remaining easily accessible to the older traditional markets that may be enjoined to assist in the continuous transition and use modern electronic means to sell directly from farm to the retail customer; utilize savings and profits to sustain markets and improve nutrition.

Concept

Consuming food is inherently as old as is mankind, practiced daily and unavoidable. It is the largest market for any product or service that is capable of reaching it in a dependable way. The current delivery system is less than a century old and it has developed into a strong growth industry that already needs to change. Over the past 50 years the creation of the modern retail supermarkets has developed at the expense of wholesomeness. Now Ijiba’s prototype organic research farms return wholesome, fresh and nutritious new kinds of food choices to world markets far and near at the press of a button. More and more modern consumers opt for wholesomeness and when that comes to them conveniently they buy it. Ijiba may feed those seeking the most nutritional food and its farming, delivery systems and customer service will make Ijiba farm products the wholesome road of choice made from the existing worldwide infrastructure; no need to reinvent the wheel, just offer that wheel another spoke.

Scope

Everyone in the world continues to be a consumer of food. More than 7 billion people eat one to five times daily averaging 21 billion meals per day. Coriolis Research reported as of 2001 that 51.9% of the world market purchased their food retail and that percentage is on a continuous growth line. Over the next couple of generations the Ijiba delivery system will deliver wholesomeness to orders placed directly from homes, kiosks located inside their local supermarket or ordering applications on their androids and from retailers who want to stock their shelves.

How

Ijiba is located on large tracks of land inside the equatorial region on half of the third largest island in the world, Papua New Guinea. All major methods of communication, shipping and delivery are accessible. Across the world air/land delivery is as quick as most non-metropolitan sites in the USA/Europe. Electronic ordering, processing and dispatching of product from distant warehousing have the same efficiency elements as the most efficient system, even Amazon.com, especially when affiliated.

Compared to California

The arable lands in PNG are only 6.7% of the 3.6 million hectares of irrigated land considered to be prime, unique or of state wide importance in California, which if a country would be the fifth largest agricultural producer. While California loses 16 plus thousand hectares of agricultural land per year PNG retains more than 29 million hectares of forest land, something original and full of unexplored nutrition and agroforestry opportunity.

Natural Diversity in PNG

Just imagine that 30 natural kinds of fruit trees growing in the forest possess more nutrients, minerals and vitamins in the leaves of the tree than in their actual fruit and that the leaves grow perpetually ready for multiple and regular harvests year round.

Undiscovered Research in PNG

Thousands of compounds never before commercialized are there in PNG for enabling research coupled with innovative merchandizing, marketing and sales to deliver directly to the anxiously awaiting buying public.

Market Demand

Market demand for leaf products as food supplements is extensive. The global herbal supplements and remedies market is forecast to reach $107 billion by the year 2017, spurred by growing aging population and increasing consumer awareness about general health and wellbeing, according to a new report from Global Industry Analysts.

Consumer Benefits

Additionally, the fact that herbal supplements and remedies cause little or no side effects and provide greater efficacy is also proving to be a major factor aiding market growth. (http://www.nutraceuticalsworld.com/contents/view_breaking-news/2012-03-07/global-herbal-supplement-market-to-reach-107-billion-by-2017/#sthash.JoacivEE.dpuf)

Progression to Succession (All the last century of the past 10,000 years)

Most of the amazing new technological changes began less than 150 years ago.

Commercial Electricity

In 1883 in Brockton, Massachusetts Thomas Alva Edison created his fabulous technological breakthrough making the use of electricity a means for simplifying much of the daily chores of living, including other future technological inventions including the means to preserving food at home through the use of mechanical refrigeration using electrically powered condensers.

Retail Food Chains

About 25 years later the beginning of a new kind of food market began with chain grocery retailing phenomenon when the Great Atlantic and Pacific Company began the Chain Store explosion. In 1930 the King Kullen Store on the fringes of New York City offered ample free parking, a bizarre type atmosphere and bulk sales of mainly dry goods, meat and baked goods claiming to be the first Supermarket.

Supermarket Explosion – Portioned Packaging

In the 1950s and 1960s the suburbs exploded throughout America and so did the supermarkets and portioned packaging while turning away from bulk sales became more important as did the general attractiveness of the physical market which evolved into presenting a pleasurable shopping experience.

Discounters – Bulk Sales

The 1970s saw the addition of Discounters and Warehouse Stores when bulk returned in what became popular. In the 1980s and 1990s the Upscale Stores, Warehouses and Mergers developed making the seemingly “wholesale” accessibility to member customers an almost retail atmosphere housed in huge warehouse structures with all of the retail amenities.

Wholesome Food

The current trend is Whole Foods, Trader Joe’s, Mergers and a move toward wholesomeness that cannot seem to avoid proportioned packaging and preservatives, but they are trying since the consumer wants what is truly wholesome, easily and readily accessible. The trip to the food market today can include gourmet dining within the confines of the grocery store for customers wearing casual ware and flip-flops and for this the customer looks past the higher prices for the goodness of eating organic and more plant based diets.

The succession is in the assurance of truly organic, freshness that is reliably delivered to the consumer’s kitchen pantry, refrigerator or freezer according to the order placed through Internet access only a few short hours before.

Delivery System

The Internet has rapidly evolved from its practical beginnings in the early 1980s when dial-up access was slow, cumbersome and undependable at best for the average user and especially difficult for the traveller. Conversely, today an android within an airliner at 35,000 feet in the air most anywhere in the world is several times more reliable, not to mention the amazing reliability for the consumer who has a state-of-the-art system inside his kitchen, home, automobile, office and/or pocket or within a kiosk at his own supermarket. The technology is available nearly worldwide.

It Already Exists

Today delivery systems such as Amazon.com can receive an order in the morning from a customer and make the delivery to the customer’s designated address that afternoon. Of course the system depends upon a stable and strong infrastructure which coincidently is found in most areas serviced by modern supermarkets anywhere in the world.

Air Freight and International Hubs

International air freight and courier services are numerous, competitive and worldwide. Surface freight as provided by Maersk Shipping Lines, one of the biggest lines around, serves the Ijiba project out of its Oro Bay Port located within Oro Province, Papua New Guinea. Maersk tranships in nearby Singapore to all points around the world and delivers in record time.

Nutrition

Remember the “food pyramid”? Remember the “food cycle”? Remember the various “hit” diets? How many “miracle” food supplements have we taken? Where is the nutrition that we so much want to find and make a part of our everyday diet?

“We like the idea that food can be the answer to our ills, that if we eat nutritious foods we won’t need medicine or supplements. We have valued this notion for a long, long time. The Greek physician Hippocrates proclaimed nearly 2,500 years ago: ‘Let food be thy medicine and medicine be thy food.’ Today, medical experts concur. If we heap our plates with fresh fruits and vegetables, they tell us, we will come closer to optimum health.” (“Breeding the Nutrition Out of Our Food” May 25, 2013 Jo Robinson, NY Times)

Nutritional Weaklings in the Supermarket

“This health directive needs to be revised. If we want to get maximum health benefits from fruits and vegetables, we must choose the right varieties. Studies published within the past 15 years show that much of our produce is relatively low in phytonutrients, which are the compounds with the potential to reduce the risk of four of our modern scourges: cancer, cardiovascular disease, diabetes and dementia. The loss of these beneficial nutrients did not begin 50 or 100 years ago, as many assume. Unwittingly, we have been stripping phytonutrients from our diet since we stopped foraging for wild plants some 10,000 years ago and became farmers.” (Jo Robinson, NY Times)

Farming as We Know It

The farming industry as a whole concentrates on growing a plant that produces more commercial product while paying little attention to actual nutrition. Appearance is valuable, nutrition is not quite so visible or apparent.

Disease-resistant

“The United States Department of Agriculture exerts far more effort developing disease-resistant fruits and vegetables than creating new varieties to enhance the disease resistance of consumers. In fact, I’ve interviewed U.S.D.A. plant breeders who have spent a decade or more developing a new variety of pear or carrot without once measuring its nutritional content.” (Jo Robinson)

Exports

“If California were a country, its agricultural value would rank between fifth and ninth among countries of the world, depending which currency exchange rates are used, ahead of Canada, Mexico, Germany and Spain. California’s agricultural exports reached an all-time high of $10.9 billion in 2007, and exported agricultural products to more than 156 countries worldwide.” (California's agricultural bounty Jan. 13, 2010 Richard Cornett | Western Farm Press)

The Future

California is losing on average 40,000 acres of commercial farm land annually to demographic changes. Its farmland is no longer distant and inexpensive. (“California Agriculture Land Loss & Conservation: The Basic Facts” July 2009 Edward Thompson, Jr., American Farmland Trust)

“Approximately 4.5 million acres of irrigated cropland — primarily on the West Side of the San Joaquin Valley — are affected in California by saline soils or saline irrigation water. Predictions vary for the rate at which salinization is occurring, but tens of thousands of productive agricultural acres are clearly at risk (CAST 1996).” (“Soil salinity poses challenges for sustainable agriculture and wildlife” March – April 2000 John Letey, UC Riverside, University of California, California Agriculture

Mid-game Corrections when a New Game is Coming

The USA and the rest of the Western World have demonstrated the will and pursuit to correct serious problems such as the 4.5 million acres of irrigated cropland at risk of increased salinization; nevertheless the required budget is no doubt enormous and because of the size of the producer (California) will be absorbed by the system in one way or the other. However, such costs are absorbed the end result is that the cost of cultivated food from California will most likely increase over time while nutritional value continues to decrease as has been the historical case.

Research

“Each fruit and vegetable in our stores has a unique history of nutrient loss, I’ve discovered, but there are two common themes. Throughout the ages, our farming ancestors have chosen the least bitter plants to grow in their gardens. It is now known that many of the most beneficial phytonutrients have a bitter, sour or astringent taste. Second, early farmers favored plants that were relatively low in fiber and high in sugar, starch and oil. These energy-dense plants were pleasurable to eat and provided the calories needed to fuel a strenuous lifestyle. The more palatable our fruits and vegetables became, however, the less advantageous they were for our health.” (Jo Robinson)

Wheat - Something Original

The Einkorn Wheat, the original, used to grow wild from Norway to Alexandria. Its 16 chromosomes (two sets) compared to today’s sixty-four is truly a healthy meal when consumed even in small portions.

Corn – Nothing Like the Original

Corn originally grew as a single grain (kernel) of only a dozen or so per stem and the first hybrids had multiple colors, each representing a different storehouse of nutrients. Now the common corn is a group of kernels growing all on one cob and even the colors, particularly yellow, has been prioritized in favor of white with 10 times the sugar content of the yellow which at least has carotene, now lost in the more sought after sweet white variety of corn.

More Originals – The Search

Research may find the ways to grow more of the original varieties in more natural and uncultivated environs where harvesting, natural packaging and delivery systems may be used to bring back nutritional value to food through agroforestry methods. Varieties not before commercialized may be so explored for value and flavourful presentation. For example the number of edible fruit in the Philippines exceeds 300 while only about a dozen are commercialized and most of those are now hybrids. Papua New Guinea promises to have even more kinds including a nut that is the size of a baseball and nutritiously delicious.

Nutrients Abound

How to find, develop and present the nutrients of the new agroforest to the outside world in an efficient and profitable way when there is a market anxiously waiting to receive such a return to nature and natural nutritional value, alternative medicine and likely new pharmacological discoveries, is an exercise in scientific research with profitable modern business applications. A percentage of the extensive list of research institutes be enticed to enter into sustainable joint ventures with Ijiba.

Today’s innovation can bring nutrition and taste together like never before and in biodegradable packaging discarded directly into compostable uses. Ijiba may produce and deliver to service and meet this growing desire.

Infrastructure

Leading research institutions, mostly as part of major universities, businesses and government spend annually US$1.6 trillion to conduct their work at remote locations around the world. As an example:

“More than 80% of the NIH's funding is awarded through almost 50,000 competitive grants to more than 300,000 researchers at more than 2,500 universities, medical schools, and other research institutions in every state and around the world.” more than US$30.9 billion annually in medical research for American people. (“NIH Budget, Research for the People” Sept 18, 2012, Us Department of Health & Human Services, http://www.nih.gov/about/budget.htm)

Going for the Impact

Robert Langer, Sc.D.
Massachusetts Institute of Technology (MIT)

"The NIH has been the single biggest supporter of our lab. It enables us to do research. The money gives you the freedom to come up with the ideas you come with —and those ideas can hopefully change the world in a better way." (Ibid., National Institutes of Health)

“The World Bank Group portfolio consists of various types of trust funds, which have different roles globally and in the Bank Group’s activities. As of June 30, 2011, the Bank Group held $29.1 billion of funds in trust. Of this amount, $10.4 billion corresponded to trust funds managed by the International Bank for Reconstruction and Development/International Development Association (IBRD/IDA), $18.0 billion to the Financial Intermediary Funds, and $0.7 billion to trust funds managed by the International Finance Corporation.” (“Opening up data on World Bank trust funds” 03/26/2012, The World Bank)

The top 31 charitable foundations worldwide have combined endowments of US$275.81 billion. (See List, Appendix)

The top 100 US charitable foundations gave more than US$20.235 billion in 2012. (See List, Appendix)

In 2014, ten countries will spend about 80% of the total $1.6 trillion invested on R&D around the world; the combined investments by the U.S., China and Japan will account for more than half of the total. (“2014 Global R&D Funding Forecast” Dec. 2013, Battelle)

Universities lead the way when applying for funding and it is the university system that can apply for grants to fund the innovative and cutting edge creativeness in science using agroforestry principles to achieve new results and methods for achieving them.

Asia’s Role Continues to Increase

While 2013 R&D investment growth was minimal in the U.S. and Europe, growth in most Asian countries—especially China—continued. Asian R&D investment growth rates are expected to return to their pre-2013 levels in 2014 and 2015. The exception to this outlook may be Japan, which is more correlated with trends in the U.S. and Europe than with neighboring Asian countries. (Battelle)

Income Cycle

Within agroforestry practices the diversified approach to developing multiple income streams permits sustainability that naturally expands since replanting becomes the exception rather than the rule. For example: This year’s growth begins with last year’s growth rather than with the tilling and preparation of the soil that is necessary for replanting of annuals which is the “law of the land” as is ordinary and customary inside common agriculture as we know it. In the Ijiba model we consider income per square meter regardless of the source, which may be coconuts, cucumbers, leaves from trees or part of the man-made infrastructure that produces income, such as real estate investment. In the end it all comes together for value-adding through manufacturing of a finished product or providing a service at the source that can then be sold directly to the consumer using electronic ordering offered through web-based technology that is assisted by existing delivery systems for which the consumer is already accustomed to paying.

Land Values

With regard to land values in developing countries “Early findings from the report have already prompted the World Bank Group to work with FAO, IFAD, UNCTAD and other stakeholders to develop seven voluntary principles for responsible agricultural investment.

It says for investments to do no harm, be sustainable and contribute to development they should adhere to these principles: : 1) Respect land and resource rights; 2) Ensure food security; 3) Ensure transparency, good governance and a proper enabling environment; 4.) Consultation and participation; 5) Responsible agro-enterprise investing; 6) Social sustainability and 7) environmental sustainability.” (Issue Brief “Rising Global Interest in Farmland and the Importance of Responsible Agricultural Investment (pdf)” Washington September 7, 2010 World Bank, News and Broadcasts Report Rising Global Interest in Farmland (pdf))

Oro Province

In Oro Province, PNG the raw arable land prices are influenced most by the Oil Palm industry and its demand for more land. The leasing value per hectare for 50 years is from a low of US$384.62 to $1,923 plus 10% of the production. High large scale production yields today $9,275 per hectare annually. Leases are for 25 years, renewable for another 25 years. (“Land registration, land markets and livelihoods in Papua New Guinea” 2006, Tim Anderson, Sr. Lecturer in Political Economy at the University of Sydney)

Over 50 years the prospective production for 37,000 hectares would be $17,158,750,000. The rent would be $71,153,846 plus $1,715,875,000 (10% of production). Total fair market land value at today’s prices: $1,787,028,846, exclusive of O&G, value from prospective mining, the value from higher prospective productivity from biodiversified agroforestry and aquatic interests and other real estate development interests. Over the 50 year lease period the per hectare FMV is US$48,298 or US$4.83m² at today’s values.

		Crop production index 2004-2006 = 100 2000 2011			Food production index 2004-2006 = 100 2000 2011			Livestock production index 2004-2006 = 100 2000 2011			Cereal yield Kilograms per hectare 2000 2012			Agricultural productivity Agriculture value added per worker 2000 $ 2000 2012
Papua New Guinea	96.6		115.3	90.8		110.8	84.0		105.0	4,117		4,486	..		..
World	87.9		118.5	88.5		117.6	90.0		114.3	3,062		3,622	1,062		1,020
Low income	82.1		127.1	81.8		127.6	79.4		125.5	1,730		1,982	283		369
Middle income	84.9		123.9	84.7		122.9	84.7		120.8	2,826		3,653	728		1,027
Lower middle income	85.8		125.2	86.2		124.8	84.3		125.2	2,303		3,029	679		938
Upper middle income	84.3		123.2	83.9		121.8	84.9		119.1	3,362		4,255	761		1,098
Low & middle income	84.7		124.2	84.5		123.3	84.4		121.1	2,667		3,356	667		936
East Asia & Pacific	83.8		125.0	82.9		124.2	83.3		123.2	4,199		5,145	496		794
Europe & Central Asia	83.2		118.2	87.8		118.0	92.3		114.4	1,963		2,519	3,041		4,821
Latin America & Caribbean	82.6		124.1	82.8		121.0	83.4		116.2	2,835		4,082	2,845		3,831
Middle East & North Africa	79.0		113.7	80.3		115.1	84.3		115.3	1,771		2,350	1,986		..
South Asia	91.6		131.4	90.9		129.3	85.2		127.3	2,376		2,925	535		661
Sub-Saharan Africa	83.1		118.3	82.7		120.6	83.3		123.3	1,131		1,417	491		702
High income	97.4		101.6	97.5		104.9	97.9		104.8	4,043		4,374	16,373		21,927
Euro area	101.3		98.9	101.4		102.0	101.0		103.1	5,496		5,817	27,285		33,035

Worldwide

Worldwide the average value added agricultural productivity per hectare is US$1,020 per year. The imputed value over 50 years at this constant rate is 2,031,300,000. An arbitrary ten percent of the marginal productivity of the land when ownership is retained is US$203,130,000.

Retentive Use

The future value of the land is in its retentive use, such as is practiced by the Ayala Land Group in the Philippines.

An example of leased land principle vs. outright sale is found in the most prosperous business district in the Philippines, Makati City. The original purchase of 2,157 hectares of raw swamp and hilly land was made for 52,800 Philippine pesos (about 1USD: 1Php) in 1851 by the same family that owns the land today but began leasing the land in the early 1960s. Today the tenant improvements are such that Makati City is the financial and commercial capital of the Philippines, where the tenants built at their own expenses the Philippine’s first skyscrapers starting in the early 1990s. Makati City now exceeds its revenue goals by 4.9%, is one of the most modern cities anywhere, has 111 hotels and supports international award winning shopping malls among many other amazing attributes, but one thing for certain is that this development constitutes leasehold improvements, Ayala still owns the land and profits from the improvements without the liabilities.

Makati City

The Makati City example is a lesson learned. Ijiba is not desirous of replicating Makati City, however the lesson learned is applicable to developing the world’s leading research, development and agroforestry capital of Southeast Asia and Beyond through leasehold improvements. Ijiba will design the infrastructural plan and market to the world of prospective tenants.

Farmer Participation in Retail

Various small and local farmer’s markets exist throughout the farming communities in the US and Europe and that is generally as close as farmers come to profiting from retail sales. The model for the farmer worldwide is one that has him selling at the lowest possible price to the beginning of a long chain of middlemen.

Resource Values

Ordinary and customary agricultural practices worldwide value the overall Ijiba land at US$203,130,000 and10% of the high productivity for Oil Palm is US$1,787,028,846 or an average of US$995,079,423 that is considered the fair market value (FMV). Computing average value per square meter it is: US$ 2.69 m². If rented out at 1/10^th the price for 25 years the yield will be US$6.75m² plus tenant improvements without transfer of risk, tax liabilities or other liabilities while continuing to own the asset at its new value, a sustainable endeavor.

Agroforestry

Agroforestry utilizes biodiversity to eliminate the need for and cost of commercial additives and treatments of productive plants, soil and water. The “crops” are mainly parts of trees such as leaves, stems, bark, sap, fruit, nuts and / or roots, that require one-time planting, routine maintenance and the harvesting is perpetual since the primary production is found in the parts. Trees of certain types produce parts that have nutritional and medicinal value. For example: Each time a leaf is harvested the tree immediately begins to replace it. Leaf harvesting averages a low of 12 times per year when compared to the harvesting of fruit once per year from fruit trees, once the tree is mature after several years and producing fruit. Leaf producers often begin production in the first year and the productivity increases dramatically thereafter for fifty or more years. Some trees also produce fruit or nuts or seeds or valuable sap or bark or roots or other parts in addition to leaves. The productivity is seldom interrupted for more than a month or two for either seasonal changes or natural calamities such as major storms, unlike fruit or crops that lose an entire growing cycle. Unlike fruit that is at high risk from the time of budding to harvest the frequent harvesting of leaves assures that young, clean and healthy leaves are abundant and that becomes the routine.

Moringa oleifera and 29+ others

One example of increased value per square meter is from the leaves of the Moringa oleifera tree. Wholesale wet matter value is US$0.26 per kilogram obtained from one square meter 10 times throughout the year or US$2.66 m². This amount requires negligible overhead. Should the total of 10 kilograms of wet matter be processed by air drying, pulverizing, encapsulating, packaging and private labelling it will produce one kilogram of finished product that may be wholesaled to the customer at US$11.11 m²? Should Ijiba produce and sell retail directly through the worldwide web where the retail customer pays shipping, handling and an equivalent premium price of US$44.44 per kilogram or US$44.44 m² of productivity.

Devoting a Small Area has High Yield

Transmute Value: The retail productivity of 2,240 hectares of Moringa oleifera is the same as 37,000 hectares of ordinary and customary high-production agricultural productivity; 2,340 hectares at US$44.44 m² = $995,079,423.

No Commercial Chemical Additives

Practicalities of biodiversity: Not all of the 2,240 hectares need, nor should, be planted to only one tree, such as Moringa oleifera. There are approximately 30 trees when grown together that provide mutual benefits through symbiotic relationships and the leaves of each produce similar commercial value and service multiple markets through the same sales effort. The productivity of the land in one year produces the FMV of the land as computed at 10% of the prospective production over the succeeding fifty years. All from 22,400,000 kilograms of annual production without the need to replant and the expectation of increased production each year without any additional input, only 30 products or 746,666 kg each in raw production.

Agroforestry in this sense is more than 65 times (50 + 16) greater the return or ordinary and customary agribusiness practices.

Oil and Gas

ABSTRACT – January 2014

IJIBA Incorporated Land Group (ILG) for agro-development projects in Oro Province, Papua New Guinea has Oil and Gas rights for royalties and management interest on PPL257 near Popondetta, which Licensee reports discovery of more than 6-trillion cubic feet prospect sizes, most in deep water immediately offshore, that will support a major stand-alone Liquefied Natural Gas project.

The Ijiba ILG has registered 37,000+ hectares of arable land and has several hundred thousand hectares of customary forest land, mostly original, that will undergo future registration. Immediate goals are mobilization in order to conduct basic administrative matters leading to operations through joint ventures in sustainable agroforestry and forest management and seeking direction regarding O&G.

Subsurface: Oil & Gas, Other

Impending legislation encourages the ILG to participate in resource management as an equity partner in oil and gas discoveries within the exploration licensed areas respective to the group’s land. IJIBA anticipates passage of enabling legislation improving its ability as an ILG to bring its own equity partner to the project.

On March 30, 2010 the licensee, Eaglewood Energy (www.eaglewoodenergy.ca/) reported that on PPL 257, it had discovered multi-trillion cubic feet prospect sizes that will support a major stand-alone Liquefied Natural Gas project. It is the desire of Ijiba to encourage production while preserving the environment to the utmost in helping to make its project exemplary in complementary coordination between production and the environment in every regard.

Eaglewood Energy owns 71%, has a time specific window, expiring in 2016, in which to drill its first well and produce cash flow. The major portion of the claim is offshore. The license holder neither has the experience nor the capital to develop the offshore aspects of the claim. The license holder has ongoing drilling elsewhere and is searching for an upstream equity partner for PPL257. The major players in the industry are biding time while they engage existing projects in other areas of PNG. The PNG government owns 29%, inclusive is the7% owned by Ijiba. The PNG government has regulatory authority and favors local resource owners such as IJIBA to become equity partners beyond their legislated share and to be able to partner with outside sources to buy into the 71% share held by the licensed developer. IJIBA is currently searching for such a partner.

	Ownership	Sell	Purchase	Result
	%	%	%	%	%
Eaglewood	71	44		27	27
Government	22			22	22
Ijiba	7		44	51	35.7	70%
Capital (Investor)	0			51	15.3	30%
				100	100

Negotiation of the Investor’s percentage of ownership is flexible based upon the improvement of the cash position of Ijiba as a consequence/ result.

Third Party Evaluation

At this time there is no third-party evaluation of the PPL257 O&G claim exists, this is something that when made may be used to adjust the below figures, however at this time the following data from the World Bank and other sources is used to be able to establish an answer to Investor’s request for worth and return on investment.

Indonesian Liquefied Natural Gas Monthly Price - US Dollars per Million Metric British thermal unit

Description: Natural Gas, Indonesian Liquefied Natural Gas in Japan, US Dollars per Million Metric British thermal unit

Dec 2013 USD17.12

Source: World Bank

Month	Price	Change
Jun 2013	17.69	-
Jul 2013	16.98	-4.01 %
Aug 2013	17.00	0.12 %
Sep 2013	17.01	0.06 %
Oct 2013	16.49	-3.06 %
Nov 2013	17.00	3.09 %
Dec 2013	17.25	1.47 %

Frequently Used Units of Measure ENERGY CONVERSION FACTORS
1 MMBTU	=	10 Therms	=	1 dekatherm (dth)
1 MCF	=	1000 cubic feet	=	1 MMBTU*
1 BCF	=	1 billion cubic feet	=	1 million MMBTU*
1 TCF	=	1 trillion cubic feet	=	1000 BCF

1MMBTU = 1MCF = USD17.12; MMBTU =6TCF = USD102,720,000

Good Neighbor

The five year process of obtaining the Incorporated Land Group (“ILG”) status has involved sufficient activity within the Popondetta and surrounding areas that neighboring tribal clans have made inquiry and requests of Ijiba to assist in their ILG application process. Various land resources held by these prospective ILGs has been offered to Ijiba in partnership.

Coconut Water plus Waste

Example: The immediate coastline adjoining Ijiba land contains natural Cocos nucifera (coconut palm) in a strip one hectare wide and 30 kilometers in length or a total of 3,000 hectares of mature fruit bearing coconut trees. The natural habitat of the coconut is as described above. The tree propagates by dropping its seed (coconut) to the sand below where it either grows or is picked up by the sea and transported to another section of beach either close by or distant. Growing conditions are best along the beach. Under such conditions approximately one coconut per tree matures on a daily basis for approximately 10 months per year. Around 200 trees populate each hectare. During the production months each hectare produces 30*200 = 6,000 coconuts x 3,000 hectares or 18,000,000 coconuts monthly for 10 months. If the earnings per coconut were a mere US$0.01 that would be US$180,000 per month or US$1,800,000 per year or US0.06 m² it would not take much innovation to turn a US$180,000 per month cash flow into a business selling coconut water retail through the Internet where the consumer pays the shipping and handling plus a premium for coconut water which commonly retails for:

Each coconut on average has 500 ml of coconut water (two servings). Average retail value is $6.35 per coconut or US$114,300,000 per month or more than a billion dollar industry annually at US$1.143 billion or US$38.10 m². The retail business value of merely the neighboring coconuts produces US$3.09m² for the entire 37,000 hectares which is a 14.86% increase over ordinary and customary agribusiness by servicing directly the retail market.

Additional income may be computed from using the waste material since 100% of the coconut has commercial value.

Coconut Sugar

From the perpetual florescence of the coconut tree is naturally produced nectar. Capturing the nectar and using a simple cold process transforms it into coconut sugar which provides nutrition, vitamins, minerals and amino acids when added as a substitute to the common white sugar refined from sugar cane. The Internet home shopper price is US$35.12 for 454 gr (1lb.) or US$0.077 per gram, including shipping. Harvesting may be balanced against the coconut water market since harvesting of the nectar does affect coconut production.

Coffee and Joint Ventures

Nearby to the Ijiba project land is the Afore coffee growing region where more than 100 years ago foreigner business ventures brought coffee seedlings to their mountains from Jamaica. By the time (7+ years) that the coffee trees took to bear coffee beans the original investors were nowhere to be found. Coffee, a tropical plant, self-propagating has spread, assisted by locals, covering today more than 3,000 hectares. This variety of mountain grown Arabica coffee may be the same as the world renowned “Jamaican Blue Mountain” coffee. The Afore coffee growers are members of the Ijiba tribal clan and have asked Ijiba to manage the up line coffee business.

Field Test

On January 25, 2014 Ijiba Grand purchased from Atlas Coffee Importers in Seattle, Washington one 132 pound sack of PNG Y-1+ green coffee beans at $1.80 per pound or a total of $238.00. There were no duties or taxes. The beans were compared to the Ijiba Grand’s Afore coffee beans, PNG Y-1, obtained in Oro Bay, PNG in December 2013 from the Afore coffee growers. The Afore beans were parchment and when opened to reveal the green bean the Afore bean was similar in color, density and moisture however it was considerably larger than the Goroka coffee bean purchased in Seattle from Atlas Coffee Importers.

Opportunities

Direct purchasing/sales is the goal and when accomplished the grower will receive two payments for each shipment. The first is the standard payment made at the time of shipping and the second is additional at time of sale in the Seattle market. The company will in essence be buying from itself and selling directly to the wholesaler and/or to the roaster and/or to the coffee shop (customer). By removing two to three layers of middlemen the margin between cost and sales is retained by the company and shared with the grower, the company and the customer. Amazingly, without the three layers of middlemen the increased profitability at a reduced delivered cost to the customer is significant. Joint ventures between the coffee roasters and the Afore coffee growers will make gentlemen coffee growers of each coffee roaster enabling boasting rights as a coffee grower and actual benefits of a coffee roaster buying his own coffee at farm gate regardless of the quantities or time of year without regard to futures contracts.

RESEARCH

The Wholesale price from Atlas Coffee Importers from Coffee Offering List of January 22, 2014 for pick-up on January 25, 2014 at the Atlas Warehouse, Seattle is $1.80/lb. for PNG Y1 Grade. The difference between $1.80 and $1.29 (average between high and low contracts offered on January 25, 2014) is $1.28/lb. (Atlas Coffee Importer states that it uses the NY C contract daily prices because that is the cost for it to replace the coffee sold by it that day, therefore Atlas claims that its cost is $1.28 for January 25, 2014.)

Ijiba Coffee’s landed cost in Seattle is $0.37/lb. and the spread between $0.37 and the wholesale price of $1.80 from Atlas Coffee Importers is $1.43.

The Ijiba cost advantage over Atlas is the $1.43 spread between Ijiba’s landed cost of $0.37 and Atlas’s cost of 1.28 or $0.15 which is 11.7% less than the presumed cost claimed by the Atlas Coffee Importer’s spread that is $1.80 - $1.28 or $0.52 which is a 40% mark-up.

The spread between Ijiba’s landed cost of $0.37 and the Atlas’s wholesale price of $1.80 is $1.43. If Ijiba offered its product for 11.7% less than Atlas Coffee Importers its wholesale price would be $158.94 which is a difference of $1.21 or a 327% mark-up.

Seattle is the number one coffee consuming city in the USA:

Computation of the annual market is for only the Seattle area. Seattle is however the gateway for all of the Northwest.

Cacao and Others

Cacao and Vanilla, various spices and by-products are also open to innovation that turns ordinary and customary agribusiness practices from perpetual poverty for the farmers to billion dollar lines of business for the farmers while delivering a far superior and wholesome product to the consumer in a more convenient and efficient manner where the consumer pays the freight and handling without qualm. Overcoming resistance from the local retailer is accomplished through the same joint venture design used for coffee. The retailer continues his customer relations and provides convenient order taking and customer service while being a part of the supply chain at its source. “Canterbury” chocolate is one of the very few big players that actually sets up value-add processing in the cacao producing areas, however, their business relations with the farmers remain ordinary and customary. The farmer benefits from having a constant market and the additional local unskilled and a few skilled labor jobs, however is not part of the retail side, nor is the sales model any different than what is the standard for the industry, i.e. manufacturing, distribution, and warehousing, wholesaling and distribution to retailers while purchasing from the farmer at the lowest possible price.

Other Real Estate Development

The Ijiba area within the Oro Province is one of the most beautiful areas the author, who has worked in 46 countries, has ever seen. While standing in an open area at about 2,000 feet elevation he took a 360° panoramic set of photos. The pristine area spanned from the sea to the coastline inward to the mountains and back again to the sea. Only about 10° showed signs of civilization, although the area is very civilized. Hornbills flew by, birds in the jungles below, crystal clear waters in the sea two miles out in front and sprawling coconut tree filled coastlines to the north and inland arable lands rising gradually to the tree covered mountains that stretch more than 4,000 meters high with mile-high Afore coffee growing this side of those higher mountains. Harvey Bay below holds the sunken submarine from WWII that USN Captain Harvey and his men abandoned and the locals naming the bay after him.

Preservation

The area is virtually untouched and to preserve that quality while at the same time making it accessible is a challenge that must be undertaken, fore if it is not the preservation aspect will undoubtedly be lost as the outside will inevitably discover the same area and unwittingly destroy it one mosaic piece at a time.

Preservation of Mother Nature and access to her is a business requiring control, planning and adherence to a very meticulous plan. How does one open access to an area, offer modern amenities to the paying visitors and residents while keeping them out of sight of each other and passive regarding the wildlife and natural habitat?

Anything is possible if the budget is right, the market is selective and the management is enlightened and motivated. Such a location becomes unique, in demand and valuable to enjoy and partake.

Rainforests

The 37,000 hectares of arable land that is under the registration of the Ijiba ILG is but only a fraction of the remaining lands within Oro Province that Ijiba will commence registering and bringing under the ILG in the future. There are three forests each comprising more than 250,000 hectares, one of which is an undisturbed original forest and the other two are nearly as pristine. Contained within and connecting the three forests is a clean and undisturbed river that runs for nearly 200 kilometers from the area of the historical WWII Kokoda Trail northeast until emptying into the sea. The elevation drop of the river is very slight over the entire distance however the forested banks of the inland side where the river begins are a couple thousand feet above the river making for a beautiful tree covered gorge inside the rainforest. Species of all kinds, old, new and yet to be discovered exist and through innovative river travel may be observed using the least obtrusive means.

WWII

Once at the coast one finds the area of Buna that in WWII was the landing and withdrawal site of the Japanese Imperial Forces that moved to take Port Moresby on the other side of the Owen Stanley Mountain Range. The retreat of the Australian and Allied Forces was endured until reaching the summit of the mountain range where the troops stopped their retreat, dug into the jungle positions above the pursuers and prepared their defenses that actually turned the tide of battle. The subsequent counter-offensive succeeded over a period of weeks while pushing the former pursuers back more than 70 kilometers and into the sea where they exited Buna.

This entire region is revisited routinely by both sides of WWII pacific forces and their ancestors. Only a few memorials and sparse accommodations exist in the entire area that consists of more than 100 kilometers. In February 2014 the US Army has 500 graves personnel conducting recovery of 65 of its WWII personnel killed in action in the area of Buna. Also in the same area the remains of Japanese soldiers have been marked by Ijiba tribal clan members and the Japanese Ambassador is initiating similar graves recovery action on behalf of those war-dead and their relatives. Several square kilometers of land in the area were an intense battle ground involving hand-to-hand combat and extreme determination on both sides since the battle was at the beginning of the allied offensive to ultimately retake the Philippines. The fighting in Papua New Guinea was at the doorstep to Australia and the required success was needed to preserve Australia while the Japanese were equally determined to cross the mountain range and take Port Moresby and move onward to what would most likely have been the taking of Australia.

The jungle warfare created unbelievable stories that are best told by the locals whose grandparents lived it. One such group of elders travelled a few years back to Japan as official guests because of how they had helped one particular young Japanese soldier who had lost his sight and his way immediately following a battle. Similar stories abound about helping the Australian soldiers traverse the mountain jungles. These stories have been passed down and are now told by the locals to visitors inside their local villages.

Preserving War Relics

The locals take pride in preserving war relics and remains when accidentally found and documenting them through proper reporting to the appropriate government officials. The whole area is a step into the past. Preservation of the area would offer sustainable business income and assure the future well-being of the history much in the same way that Normandy, France has respectfully preserved the Atlantic history of the invasion of Europe in WWII while providing ongoing business for the local residents.

Overnight Accommodations

Overnight accommodations for international guests in Papua New Guinea are from five star hotels to apartment compounds where the units have at least two bedrooms and are fully appointed from bedroom to kitchen. Both types cost approximately the same and average around US$385 per night. In the province the prices are about US$100 less but the accommodations do not qualify to be a part of the star rating system.

Apartment Compound

Providing the apartment style rooms in the province would be welcomed by the tourists who now rush into the Popondetta area on a morning flight and depart that same afternoon or they back pack or find a remote dive site where they pay considerably more for their stay and accommodations. Management is to be leased and the rooms bring the same price structure that is in Port Moresby. The payback is three years and the gross income from only the rental of the rooms is US$140,525 per apartment with ten units per location and three locations. Over three years the gross rental is $12,647,250 and at a 65% efficiency it is US$8,220,712. Cost would be US$3,000,000. The net earnings are anticipated at 20% or US$1,644,142 or US$54,804 per unit over three years. Expansion will be steady.

Construction

The construction utilizes Zamil Steel that offers up to a 30% savings. It is manufactured to order at the factory in Hanoi, Vietnam and shipped directly to the building site for erecting rapidly. Each infrastructure will cost approximately US$200,000 and that includes additional space to be utilized by Ijiba for office, equipment, supplies and its area nursery. The build-out of the building to high-end standards is another US$500,000 and US$300,000 in landscaping, area improvements, security and fringes. The concept would be to provide high-end accommodations located at a remote station house. Ancillary income streams are apparent from providing transportation, guided tours and the like. Rental vehicles (Toyota Land Cruiser) rent for US$461.53 per day whether in Port Moresby or in the province. Fuel is reasonably priced though.

Restaurants

Currently there are no sit-down restaurants for tourists or business guests available in the province. In order to avail of such the tourist must stay at a remote dive site and pay premium prices.

Capital

When personal computers first began to be a sure thing the level of product sophistication was minimal and manufacturing was done in home garages. Life’s lessons tend to repeat and the transition to the alternative food market is now where personal computers were at their beginning.

Food Market (world population, demographics)

The food market as we know it today consists of the entire population of the world. A given is that all people must eat but where they source their food continues moving towards retail.

Retail Remains the Trend

Amazingly, most of the world’s population of 7.1 billion people is outside of the commercialized food chain that is otherwise common to anyone reading this material. However, the rapidly growing global supermarket retail industry is expecting US$1.7 trillion in sales by 2015.

The Symbol of Retail Grocery

Supermarkets have emerged as a leading global symbol. South Korea, China, India and Indonesia, from the Asia Pacific region hold promising growth potential in the retail supermarket industry.

Close Proximity of Asia

The populations of these four Asia Pacific players are South Korea: 50.2million, China: 1.3billion, India: 1.2billion and Indonesia: 253.6million or a total of more than 2.8billion people. The first three countries are already ranked among the fastest developing markets globally.

Buying Food Retail is a Growth Industry

The supermarket is a growth industry reaching at more than US$1.7 trillion in sales within a global market of 7.1 billion while 48.1% of the world population is not participating, but the trend is that they will. Sixty percent of the existing market buys its retail through the supermarket.

The Time is Right for Direct Sales to 80+ Percent

The market share in North America, Europe and Australasia are at 85%, 80% and 80% respectively and are ready for direct sales conversion while the rest of the world continues on the trend of increasing its supermarket system for retail sales and remains as a bulk sales market from the perspective of the supplier.

Distribution

For example “One area where air freight is particularly vital is in facilitating trade with the developing world - especially Africa. Air freight allows these developing countries to trade in fresh produce, such as food or flowers with Europe - a key area of the economy for many African nations. For example, the export of fresh fruit and vegetables to the UK alone contributes almost £35m per year to the economy of Kenya - 95% of these products have to be sent by air. The distances involved usually make it impossible to serve these markets by sea freight due to the extra time that would take. Overall, more than one million African rural livelihoods are supported by UK consumption of fruit and vegetables.” (Global Air Cargo Advisory Group, 2011, www.gacag.org)

“Continuing profit challenges at passenger airlines have focused airline attention on opportunities to earn lower-hold cargo revenue. On average, cargo revenue represents approximately 15% of total air transport revenue, with some airlines earning nearly 40% of their revenue from cargo. Declines in yield for cargo and passenger services reflect productivity gains, technical improvements, and intense competition. While declining yield creates pricing pressure on all industry segments, it also helps stimulate growth for the industry by enabling lower shipping costs for the consumer.” (“Executive Summary” 2012, Boeing, World Air Cargo Forecast, 2012-2013)

Wholesome Food Market

One company is growing double digit, has a tiger by the tail and can use help.

Whole Foods Market

Market History

– Natural And Organic Food Industry Began About 30 Years Ago

– Whole Foods Market Is A “Founding Firm”

– USDA Established The “Organic Rule” In 2002

Whole Foods Market, Inc.

– 25 Years Of Double Digit Revenue Growth

– $4.7B Organic Supermarket Industry Leader

Whole Foods Current Strategy

– Expand Through New Store Openings

– Achieve $12 Billion In Sales By 2010

Strengths

– Corporate Culture

– Customer Experience

– Perishables

– Hip Image

– Double Digit Growth

– Largest Selection

Weaknesses

• “Whole Paycheck”

• Whole Planet? Weak International Operations

• Low Employee Efficiency

– Revenue per Employee = $138K versus Industry Average of $309K

Strong Cash Flow and Stock Position Provide Capital for Growth in the Most Highly Desired Locations

– 4.7 Billion Dollar Revenues

– Revenue Growth:

• 21.6 Percent From 2004 To 2005

• 15.8 Percent From 2005 To 2006

– Returning Invested Capital (ROIC): 37%

Capitalization Increased To 6.8 Billion:
6th on the List of All Grocery Chains

(“Executive Summary” 2009, Whole Foods Market, Inc.)

Packaged Food

The packaged food market is characterized by the air conditioned modern buildings housing isle after isle of packaged processed food surrounded by refrigerated display cases full of products made impeccably clean and convenient for the consumer.

Retail Environs & Buying Experience in the West

Typically in the USA, European Union and Japan where more than one half of the total global sales of packaged products exist the consumer is insulated from the realities of the farm and purchases groceries from the above store, drives them to his home where the food is easily stowed inside the home’s reliable refrigerator and freezer unit and dry goods are stowed inside kitchen cabinets, pantries and closets to be prepared for further use in smaller portions over extended periods of time. This modern market lessens the frequency of motorized shopping trips for the consumer since storage capabilities exist at the consumer’s home. This western market style is a $602billion business, mostly earned from post-farm processes, activities and retail delivery costs. The European Union’s share is similar.

Far Eastern Markets

In the Far East influences of the Western Market are there sufficiently demonstrating that the trend is to continue mimicking the West while pulling hard to move away from the traditional daily wet and dry markets where refrigeration is limited to ice tossed over the top of fish and meat products, butchered earlier, are on display hanging in the open or lying on top of open counter tops ready for immediate sale. Small fans rotate above to keep the flying menaces at bay. Fruits and vegetables are fresh from the previous day’s harvest and grains are sold from large sacks straight from the farm. This tradition holds strong. Wet and dry markets, even inside modern metropolitan areas, are found nestled away, usually in the older sections of the urban sprawl that separates the food sources in the countryside by significant distances. The consumer is not squeamish but acquainted and appreciative of farm practices. More than three billion people represent this market which welcomes western style supermarket change while embracing wholesomeness.

Western Market (USA, Europe, Australia)

In the West many “wholesome” food markets are becoming popular and the growth is upward to the point that to keep the shelves stocked with truly “organic” products is increasingly difficult.

Wholesome Food Availability

It appears in the markets, nevertheless, that the movement of the market as a whole is in the direction of becoming wholesome. Difficulties in supply may continue to squeeze prices upwards and this market however may remain out of the reach of most.

Food supplements that offer vitamins and nutrients represent more than US$11 billion in annual business and a flurry of clinical studies in 2012 and 2013 concluded that there is no significant negative or positive to taking such supplements. Previous studies have shown that consuming whole food in the form of vegetable and fruit do produce positive results. (NutritionFacts.org, February 11, 2014,Dr. Michael M. Greger)

While such data suggests that the trend will shift from supplements to fresh produce, however the herbs provided in organic leaf form continues to show benefits worthy of the more than US$100 billion market as the higher prices keep stratifying the market and keeping packaged food out in front and affordable to most.

Far East

The mere population of the Far Eastern market suggests distribution logistics as the major concern. Once again it is the consumer who is the market and the accessibility of the market to the consumer is no longer limited to a physical wet, dry or modern market situated nearby his home. The Internet opens the world of choice to the consumer wherever logistical channels reach. The trend is for the consumer to reach for new information in this age of accessibility even in the distant and remote regions. Economies follow this trend and increase the quality of access routinely which expands market demand and makes logistical problem solving a viable business expansion for distributors. The trend for expansion gains momentum.

Quality of Food

Wholesome foods, food supplements, packaged goods and others that are organically grown on land that has never before seen, felt or been touched by man-made chemicals.

Wholesomeness

The first consideration is “wholesome”. Science began touching on this question in the post WWII era and the funding for continued research lessened before picking up again around 2005.

Customer Awareness

Most of the consumer awareness came from reading the front of packages of highly processed foods endorsed by athletic stars whose knowledge about food quality was far less than the significance, however, that the public placed upon the “hero’s” endorsement. Subsequently, in the USA, legislation required disclosures and the label on the back of the package became marginally important.

Science Returns

Today’s field scientists are unearthing volumes about when to eat, how to eat, what to eat in what sequence(s) and a myriad of other pertinent results. So voluminous is the information that it must be synthesized and what we know today is not what we as a world of consumers will necessarily accept as truth tomorrow.

Agriculture (ordinary and customary)

Monoculture remains the method of choice, a practice that has developed over the past 10,000 years. Efficiency is the general answer of the practitioner when questioned as to why he grows only one crop at a time on his land.

Western Market (USA, Europe, Australia)

Mechanized farming methods in combination with satellite technology and the use of the most subsidized development of seeds and support chemicals, compounds and materials utilizing farm to market (below wholesale) roads, bulk storage elevators, distribution to central processing and manufacturing centers and subsequent distribution systems to the most advanced retail sales systems in the world commonly exist as a matter-of-fact in the West. Government subsidies and farm operations financing permit volume production per farmer that overcomes small per unit profits.

Eastern Market (Japan, Korea, Taiwan, S.E. Asia)

The trend of the farming methodology is to replicate the West. Currently, the replication is limited to the elite within metropolitan areas and the large balance relies upon traditional farming methods that mimic the former less technical agricultural practices of the West. Land reforms have produced the small farm approach however.

Marketing

Worldwide the trend is to interface electronic ordering into the daily routine. The customer tends to look past the actual geographical location of the product’s origin and centers on service criteria, such as how quickly can the order be delivered?

Sales

Worldwide the point of sale is where the decision is made to make the purchase and authorize payment. The trend is for the point of sale to be the electronic device utilized by the customer to place the order and press the payment authorization button. This technology exists worldwide however the logistics of rapid delivery are not yet as extensive, although expanding.

Crop Net Earnings Per Square Meter

Country	Crop	Expenses	Gross Profit	Net
Spain	Peppers	$4.50	$7.95	$3.45
U of F Florida USA	Hydroponic Tomato	$27.65	$44.22	$16.57
Bangladesh	Shrimp culture	$0.58	$0.19	$0.13
New Zealand	wheat - Guinness world record 2010	$0.11	$0.39	$0.09
ND State Univ.	corn - high yield	$0.81	$0.10	$0.02
Iowa Farm Bureau	soybeans - after corn	>$0.81	$0.11	<$0.02
Philippines	rice	$0.18	$0.24	$0.06

Alternative Food Market

The alternative food market is fresh and wholesome food and represents a percentage of the growing retail food market. In 2001 the retail market had already reached 51.9% of the world population. The alternative food market leader is in the USA, a decade old and exceeds $8 billion in annual sales. Its market growth plan is to ride on the coattails of the retail market worldwide. A one tenth of 1% target market is 3,978,135,000 per year or 10,899,000 meals per day. The alternative food market is new, robust and growing. The time to enter it and grow with it is the present.

Retail Food Market

Worldwide

Average Meals Consumed per Day 21,000,000,000

Percentage of Market that purchases retail 51.90%

Retail Market, meals per Day 10,899,000,000

Retail Market, meals per Year 3,978,135,000,000

Wholesome - Agroforestry (organic and innovative)

There is more land available in the world for agroforestry than is currently being farmed using ordinary and customary practices. Agroforestry relies upon mostly perennials and cultivates them by pruning, trimming and using the biomass that is produced. The mere act of harvesting of leaves, twigs and branches keeps the plant (mostly trees and shrubs) vibrant, robust and producing more in the current year than in the previous year.

Wholesome - Research and Development

Research and Development efforts regarding the growth, production, symbiotic relationships and the optimization methods are far and few between one another. It is a developing science that only in the past half-decade has found its way onto the university curriculum worldwide. Field models that illustrate success from farm to market to new and better nutritional intake of the consumer do not exist. Ijiba may be the first.

Wholesome - Infrastructure

Infrastructure for an agroforestry field model requires self-sufficiency in all respects and flexibility to adjust according to new scientific and technological findings. All of the basics of a small modern township with access to air travel, roads, modern buildings, power, fully equipped conventional and field laboratories and amenities from basic creature comforts to entertainment for the scientists’ and technologists’ families and their access to medical, outside travel. The end product of course is business and the infrastructure must support such with modern, state-of-the-art communications and administrative capabilities.

Wholesome - Credibility

Results are growth industry leadership through credibility. The alternative food market is more interested in the credibility of the food source as a priority while the regular retail market could care less. Industry leadership means scientific nutritional knowledge, reliability, deliverability and trustworthiness.

Wholesome - Products

Every type of crop grown in Papua New Guinea tends to be larger than what is common to the existing market. For example the cucumber weighs approximately one kilogram. All of its other characteristics are the same. A food company such as Valsic Pickles, America’s favorite pickle specializes in whole pickles in a see through glass jar. One of its best sellers is a jar holding 80 ounces of whole Kosher Dills. Five more examples:

Coconut Water

Coconuts trimmed down to the nut with a one inch strip of its fiber cover remaining for easy carrying and handling. Included with the fresh coconut is a simple cutting device that when gently tapped with a mallet or hammer at home the fresh water inside is revealed and made easy to pour into two 8 oz. serving glasses standing by.

Chocolate

Chocolate that is 85% cacao

Vanilla

Vanilla beans, fresh and processed

Einkorn Wheat

Einkorn wheat “is the purest and most ancient form of wheat available as it only has 2 sets of chromosomes and is naturally very low in gluten!” (http://www.thehealthyhomeeconomist.com/the-4-reasons-why-im-switching-to-einkorn-wheat/#sthash.QuG3Unug.dpuf)

Coconut Sugar

Coconut Sugar from the nectar

IJIBA JOINT VENTURES The Coffee Model

Coffee	US$/lb.	% Spread
Ijiba Seattle	0.37		3478.38%
Ijiba Wholesale	1.59	329.73%
Ijiba JV Retail Customer	13.24	732.70%
Retailer Gross	11.65	Farmer	Ijiba	Admin	Project	Community
Ijiba & Farmer	2.24	0.34	0.34	0.34	0.90	0.34
Net to Retailer	9.41	Retailer is now a grower through joint venture. He benefits from fixed prices, no minimum orders, makes $1.61 more per pound (even more when sold by the cup) and can visit his farm.
Increase to Retailer	1.61

CONCLUSION

This concept paper commenced with the coffee example as the way that should evolve over the next couple of generations. The opportunity for change is in the architecture of the more than 5,000 percent spread between the farm gate and the retail customer. A redesign of that spread is for the first time in man’s history available due to the electronic age that rapidly continues to be adapted in every corner of the earth and the fact that modern worldwide distribution systems permit the farmer to electronically shake hands with retail customers, never before has that opportunity existed beyond the neighborhood farm. The nutrition revolution is emerging and shifting from the enormous spread of paying what is to become the dinosaur middleman with his epic period coming to an end in favor of direct farmer relations. This will enable the development of nutrition at the farm gate like never before, ever. Product sources ignored in all of the retail food industry’s history will be available and although the most nutritious are not always the most tasty, new research will help with that change. Papua New Guinea offers land for growing the greatest varieties of natural foods and the strategic geographical location to reach the world’s market place one customer at a time whether that is an individual ordering from her android in Kenya or a supermarket chain ordering to stock its “nutrition” shelves in the USA, Europe or Asia.

This concept paper leads into the following business plan for conducting feasibility and implementation planning.

Equity Partnerships in Sustainable Reforestation at "Hilltop", a Series 05

2015-02-08T21:20:00.000+08:00

Papua New Guinea and the Philippines

Strategic Partnering

Preparation for Moringa planting
March 2014 in Philippines

Ijiba Grand Corporation, Ltd., a Papua New Guinea registered corporation is participating in the agroforestry demonstration project located in the Philippines.

The demographics of each location are dissimilar, however they both are tropical, underdeveloped and provide opportunities for using land to implement the new paradigm of sustainable agroforestry.

Advantages

Moringa growth January 20, 2015

Conducting business in the Philippines is rather tranquil while
PNG is in the midst of what may become one of the largest oil rushes. Most of the business visitors there are with major petroleum companies and they keep the five star hotels full and the prices of everything at bumper levels. Just moving about in a taxi can run US$100. Taking up temporary residence in the province and being mobile is a daily price tag of around $1,000 for a couple of business men. For the oil companies no problem, but for the rest it is tough to justify five star prices at two star accommodations. However, life in the Philippines is a different story, pleasantly different.

The Filipino farmer offers a vast level of experience in being able to make crops grow with or without the help of third-parties. He is one of the most resourceful people you might ever imagine meeting. When given a helping hand he can move mountains and farm as much land as is available. His typical experience in the Philippines is about three hectares or less and his farm tools are extremely limited as is access to water, but somehow he produces crop after crop after crop. Unfortunately his efforts are concentrated on low-value crops, however on the fortunate side it is the Filipino farmer who can readily adapt to new technologies and types of plants once he puts his mind to it.

The location of the demonstration agroforest in the Philippines is convenient and far less expensive than if it were located in PNG. Ironically, the infrastructure in PNG is not nearly as good as it is in the Philippines nor is there the market that the Philippines already enjoys.

Farming in PNG is very limited due to the fact that the only market domestic and since the country is nearly twice the area of the Philippines while the population is only about 7% of the Philippines. Large spances of arable land are available for farming. The combination of the Filipino farmer's experience and the availability of farm land in PNG is complimentary for Filipinos to assist those in PNG who might desire their help.

Papua New Guinea is the new frontier.

Ijiba is bridging the opportunities of both countries by utilizing the common bonds and interests in the most economical way by having its research, development and marketing headquartered in the Philippines where the demonstration and growth is ideal for the small farmer. PNG is more for the large agribusiness company looking to expand its supply chain management for the growing regional market or for the local who would like to participate in large scale farming; and Ijiba markets.

Business conceptualization and relationship development will commence in the Philippines and when appropriate expand to PNG. The logistics of receiving business prospects in the Philippines are far easier and much more efficient at this time. Agribusiness partners will be assisted in preparing for their every need in PNG through the program as developed through discussion at the demo agroforest in the Philippines.

For example, we may see at the demo agroforest how coffee, rubber, cacao and guyabano are all grown together. Expansion of the concept may be applied to several thousand hectares of coffee and cacao existing in PNG. With the agribusiness partner the logistics are addressed and we move into the area and make it happen and Filipino farmers are utilized to help train.

Equity Partnerships in Sustainable Reforestation at "Hilltop", a Series 04

2015-02-01T07:22:00.000+08:00

It is a New Paradigm

The replication comes merely as a follow-on when even a smaller percentage of free-thinkers muster enough commitment to abandon their ties for a Hilltop of their own use that supports most of the surrounding community. The technical connections of both the Internet and air cargo make the sustainable cash flow of Hilltop feasible and the replicable model for reforestation of the entire Philippines and beyond.

Replication of Sustainability

Coffee, rubber, timber, Pili, Guyabano and
more than 30 other species aiding each
other organically

About the products. The existing paradigm of food production is lacking in the benefits that food is expected to provide. The products bring back to the consumer that which is lacking in their contemporary diets. This is more than food supplements. This is more than claims of wonderment. This is, this is the old common sense paradigm of biodiversity in organic sustainable farming of mainly trees and the commercialization of their beneficial parts, most often the leafs, nuts, sap, bark, roots and the like without killing them, but letting them grow and grow. The production is conducted using Mother Nature’s plan of symbiotic relationships and the results are fantastic, certainly to not only that small percentage of consumers within the huge world population who eat habitually three times a day, at least, and want their meals to count for something besides hollow calories but also to those at the bottom rung who need a boost.

Cash Revenues are Incentives for Reforestation

The last aspect is actually the first and is the real motivator that is reforestation on a massive scale. We place this goal last but its presence inspires. To place it first is to be typically unfeasible since the cost is overwhelming when hundreds of millions of hectares require reforesting at about USD6,667 per hectare; a practice that repeatedly fails but continues to be practiced by major funders.

Categorized as agricultural land by the Department of
Agriculture are vast areas of hectarage that lay barren but
were once rainforests.

How to actually grow enough trees on so many hectares? Critical mass or as defined in the Merriam-Webster Dictionary “a sociodynamic term to describe the existence of sufficient momentum in a social system such that the momentum becomes self-sustaining and creates further growth”, may be as low as 7% or as high as 30% according to John Naisbitt and Patricia Aburdene in “Megatrends 2000”.

Critical Mass Might be too Much

Using the seven percent level for achieving critical mass the 23 million hectares of the Philippines that need to be reforested require the target to be 1,610,000 hectares. Even at only seven percent the goal is way out of reach using the common paradigm. Another approach or paradigm is needed, one that works with Mother Nature and the locals, agroforestry and the Hilltop method.

Make the goal one of the local community and make it representative of seven percent. In other

It is the small farmer who will reforest the Philippines.

words start small and equate the initial success goal to be critical mass and then extrapolate from there to determine the reforestation goal that becomes the “second seven percent”. The adjacent and non-adjacent, congruent and non-congruent, communities number hundreds but only 14 are needed and through actual practice those 14 will come forward on their own. As they make their positive interest known the casual acquaintance is formalized. Out of the total of 14 the single demonstration agro forest becomes seven percent. Instead of looking at the 1,610,000 hectares we are looking at only 112,700 hectares which will become the seven percent of the next, or the 1,610,000 hectares and then the replication will grow on its own to cover the rest of the country, exponentially.

Funding

Who funds the project? The small 5 to 8 hectare Hilltop requires entrepreneurial funding. However, the amazing thing is that the expansion, replication and exponential reforestation is funding by the individual farmers supported by their own Hilltop demonstration agro forests.

For example: Tanyag is a barangay (village) consisting of about 2,000 hectares, 900 families farming rice and room for about 10 Hilltops. Each is approximately 8 hectares but influences about 50 hectares surrounding or about 25% of the barangay. The demonstrated income per square meter is several hundred times greater than the farmer earns per square meter from rice farming, which requires replanting in 150 day cycles, but only twice per year. This unbalance is quite visible to the local community. Winning over the first barangay leads to winning others at first and then more at an increasing rate. When several barangays are fully engaged the “copycat” syndrome that is so prevalent in the Philippines comes into play.

Partnerships

The ownership of the Hilltop creates from less than one hectare a cash flow that surpasses any other

income ratio of any other business that most any entrepreneur has ever experienced. Sharing this wealth as part of a superb plan permits the scaling up to be self-funded and perpetuating in the most fantastic harmony with Mother Nature that the ultimate reforestation goal becomes more than merely feasible, it becomes reality through spontaneity.

The spin-offs of agro forestry for the local community go beyond mere employment and helping the financial picture transform, it also helps with water use, source enhancement and recycling and sanitation; it also slingshots forward with precision agriculture as part of ago forestry, it also supports the feelings of Cornucopians and will help convert many Malthusians who believe that we have already exceeded the planet’s carrying capacity, it also brings the community together as the most critical problem solver in reaching for applications of new technologies; it also uses its new paradigm as an educational platform, all for the betterment of the earth and mankind. It connects with the entire pyramid.

Supply and Demand

Do not get hung up on crazy things like oversupply of the products that will increase in number as the reforestation expands and achieves its goal, etc., it just is not a worry. Nor should you get hung up on the lack of production capacity. Feeding oneself is one capacity goal and the next is to feed the neighbor. With more than seven billion meals consumed daily such hang-ups are premature.

Papua New Guinea is the HQ of Ijiba
Grand Corporation Ltd. ("Ijiba"). The
agroforestry demonstration farm in
the Philippines is part of Ijiba's effort
to apply these principles through social
entrepreneurship.

Social Entrepreneurship

The natural inability of being able to fully implement a plan according to every detail is a definite safeguard but being able to implement success at each Hilltop is a system for success for each social entrepreneur whether working as one, as competitors or as collaborators. The new paradigm is the alternative to the existing one that in its own way does provide several billion meals each day worldwide. Don’t sweat the small stuff, move on or stay where you are, the number of Hilltops, although numerous, is limited but the potential to make those meals better and more accessible by an order of magnitude is limitless.

Equity Partnerships in Sustainable Reforestation at "Hilltop", a Series 03

2015-01-26T18:46:00.000+08:00

Reforestation or Afforestation

The United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (“UN-REDD+”) sets the standards for understanding so much of the terminology associated with forests.

Reforestation

Reforestation generally refers to forests that are cut for commercial purposes such as lumber production and especially paper production. The commercial entity commonly includes the replanting of the cut forest as part of the business.

Afforestation

Afforestation generally refers to forests that are cut without regard to replanting and the land is no longer forested for a least fifty years. These lands represent the typical rainforest clear cutting by entities, both legal and otherwise, that are interested in only obtaining the timber and selling it or merely discarding it for access to the land.

Simply Combine the Terms

For the purpose of simplicity the term reforestation covers it all. Even the commercial logging companies that reforest are merely mono cropping but rather than growing corn or rice they are growing trees in order to cut them down, replant and grow again until time to cut them down. This practice does not serve Mother Nature and is environmentally unfriendly through greenhouse gas emissions. The lack of bio diversity that this reforestation perpetuates adversely affects so many environmental cycles from pollination, symbiotic relationships that produce more positives than science has yet to understand.

Reforest the Philippines

When using the term ‘reforestation’ Hilltop is ignoring the UN-REDD definitions and using the term in a very positive way so that its main audience, the impoverished farmers of the developing world, may find it simple to understand and in keeping with how they already know the term. We mean to reforest the Philippines. In other words we are going to use agro forestry to grow a very diverse set of plant and trees species throughout the country in a way that is sustainable because the local farmer learns that he financially benefits the most from a bio diversity of living trees and plants rather than from dead ones.

Equity Partnerships in Sustainable Reforestation at "Hilltop", a Series, 02

2015-01-26T08:42:00.001+08:00

A True Story in the Making

A spot from Out of the Old West but in the Far East

This story’s hilltop has withstood the test of time nestled in a remote but accessible mountain valley that lacks pollution of air and water nor is it congested or noisy. Resting atop is the small scale agro forest demonstration farm developed by the author to show that the best long-term business in which to engage any enthusiast’s energy is Mother Nature. He and his protégé affectionately named it “Hilltop”.

Organic is so Simple

Help Mother Nature to prosper, be on her team and watch what can be done. Add a few business principles, avoid a mountain more of them, accept that the world continues to experience Moore’s Law so be prepared to sell into the expanding populous which would like to be doing the same but does not have the commitment to abandon the ties of societal norms facing technological disruption at every turn, something that ironically increases the market and accessibility to it like never before.

Accessibility to Agroforestry and the Market is Physical and Electronic

The world is now accessible to any part of the globe. Hilltop, amazingly, enjoys better Internet connectivity than less remote areas. Population density need no longer be on the increase in the metropolitan areas. The entire paradigm of how we do so many things from eating to clothing to daily activities is naturally giving way to the pressures of change. Ago forestry is a cornerstone in this evolution.

In front of the mountains are their
accessible foothills

How Many Hilltops Can There Be

When sitting at Hilltop, one observes a panoramic view of more than 270 degrees, an azimuth containing many more tree covered hilltops positioned in front of a line of 2,000 plus meter high mountains. More than 500 kilometers of the same on this island out of more than 1,000 other similar islands.

Rice Farming is so Difficult ... (so what)

Every 150 days the cycle of farming rice begins anew and the associated costs
are at today's inflated prices. It is an economic treadmill which the farmer
keeps moving to the economic benefit of others who do not even see the farms.

Amazingly, no one else here is doing what is working with Mother Nature through sustainable agro forestry to help the locals who live in the lowlands farming rice and trying to improve their access to abundance. They live an arduous existence however, intertwined with very pleasant and refreshing family and community ties. Nevertheless they continue doing the same thing while expecting that the results will change for them and show them the way out of poverty. They need ago forestry.

Equity Partnerships in Sustainable Reforestation at "Hilltop", a Series 01

2015-01-20T09:41:00.000+08:00

Overlooking the traditional rice fields

is the Hilltop where sustainable

biodiversity is demonstrating

greater profitability on a small scale

than rice farming on a large scale.

Demonstration wins over Consultation

More than two decades of consulting the wealthy and government and not much to show for it, except knowledge. Now the author has created a demo agro forest, opened his audited accounting data and concluded that reforestation on an exponential scale is affordable, practicable and actually pretty easy. The technical connections of both the Internet and air cargo make the sustainable cash flow of Hilltop feasible and the replicatable model for reforestation of the entire Philippines and beyond.

Living soil requires getting started
early into the project while the
infrastructure is also being built.

Site Preparation

On February 19, 2014 the project commenced with the identification of the site. All of the following logical steps began in sequence and after two years the above introductory statement will become reality. For now though the process is a work in progress and is fast approaching the close of Year-1.

Following episodes will report how
the initial cash flow is derived.

Time Before Revenue

We anticipate our first revenue by February 19, 2015, less than one month away and within the initial start-up year. The income will provide the cash flow for diversification and expansion of each aspect of the project, including more income.

Goals, Apparent and Obscure

The overall project goal is two-fold. The first goal is obscure and will remain that way for sometime yet to come (more later). The second goal is visible and to the casual observer appears to be the sole objective and that is to show local farmers through demonstration how they may improve their lives on a sustainable basis.

The more obscure goal is the green goal, it is aimed at Climate Change mitigation through the application of green practices leading to the reforestation of the Philippines and beyond. When each farmer, who observes Hilltop's methodology for making money, wants to begin the only effective way is to follow the methods. In so doing the farmer earns and reforestation begins.

The next generation is planting trees. They listen some, maybe
more than some of the elders. Who knows, some might actually
listen intently and be influenced to participate.

Reforestation Answers Applied

In this series of blogs you will come to answer all of your questions and there will be many.

Remember, two decades of consulting in the Philippines has created this formula for successful reforestation. It is affordable and profitable at the same time. It plays on the individual's desire to earn more, more and more. It plays on the non-participant observer who wants to participate. It plays on the community's desire to enhance its financial status and through the methodolo it plays to Mother Nature's desires as well.

Harvesting Moringa (Malunggay) - Super High Density (G1)

2013-06-25T13:22:00.000+08:00

Ongoing demonstration at the Sanctuary Eco-Park Sustainable Agroforest in Santa Teresa is the comparison between several sets of Moringa oleifera being grown at different density levels and configurations.

Super high-density Moringa oleifera ... Initial Harvest
The Group 1 plot is a total of 20 square meters planted at very high density on May 27, 2013 and harvested on June 24, 2013, a period of 28 days with excellent results.

Originally scheduled to be harvested on June 29, 2013 after 33 days from planting the initial harvest actually took place on June 24, five days early due to external factors. A few days earlier the back-to-back tropical storms, Emong and Fabian, brought 8 inches of torrential rains to the project within 48 hours.

Although there was no direct damage to the soil or to the plants the increase in moisture brought a temporary fungus that causes leaves to turn yellow.

The cure for the fungus is to merely pick the yellow leaves and to dry the area. In order to avoid damage the affected leaves were plucked and the unaffected leaves were harvested early and the area was dried.

The primary cause of the fungus is excessive moisture. Extracting the affected leaves and reducing moisture is the cure. We made the choice to immediately extract the affected leaves and immediately thereafter harvest the unaffected leaves and to remove the palm leaves to open the soil to the sunlight.

We are not even midway into the raining season which is proving to be very wet. Removal of the palm leaves in response to the fungus will however expose the ground to the pounding of the rains. We will see how it goes over the next 10 to 12 days.

Moringa Germination - High Density

2013-06-10T10:35:00.001+08:00

This publication is one in a series.

The mere size of a pin head is the beginning but that changes rapidly over a period of just a few days and nights.

The finger is pointing to a germinated Tamarind seed that was part of the cow manure used in the seed bed.

In this series is the onset of the rainy season. Hard rains play havoc with the soil so crises management is important. The method used for making the beds offers preventative measures that should help to avoid most crises but it is necessary to be vigilant every day and on the ready to correct a problem as quickly as possible when it develops.

Growing Moringa oleifera (Malunggay)

2013-06-05T11:47:00.000+08:00

This kind of farming is sustainable. The harvests are simple and each plant is within reach. The growing bed is raised so it will drain during the rainy season, it is protected with stones along the sides to prevent erosion and the pathway between the adjacent rows is covered with large gravel to keep its form during wet weather.

The growing beds are placed along a regular pathway to make it aesthetically appealing when it grows its beautiful green leaves in between each harvest. More about that in later blogs but for now follow the sequence as the Reynolds Agroforestry System demonstrates the direct planting of Moringa oleifera as an example of high-density sustainable growing and regular harvesting commencing within 33+/- days.

Raising the soil level provides for drainage. Moringa favors dry so the rain water must be able to run off or drain away or inward. This soil is formerly from the rainforest that previously existed. It is what is left behind when the humus layer decays and erodes from exposure to the elements. The soil is very porous and is acid neutral. The area is laden with limestone underpinnings and outcroppings. The base of the limestone and the high levels of original acid in the organic matter comprising the soil make for an interesting medium for planting.

The bed is now the highest point on the surrounding elevated land. It will drain but also hold the soil within the gravel borders. Now it is time to make a nutrient rich top soil.

"Spread the Wealth" over the raised planting bed in preparation for seeding.

The best plans have to be checked against reality. Over a long area just a slight variance in the plan greatly adjusts the actual outcome. If the plan were followed each square meter would have 100 seeds. In this case the plan was modified after realizing that the quantity of seeds was about half the required amount. Nonetheless this project will add significantly to our research base while going forward. It is hypothesized that the future production will eventually equalize with other more densely seeded beds. Time will tell.

Within five days germination should begin to show and increase steadily for two weeks. Avoid lifting the palm in order to take a peak underneath. Just be patient and the little sprouts will find their way up and through the palm leaves which you should let alone for the duration. They will begin decaying and that process is healthy for the new sprouts.

In later postings follow the germination on through to making the finished commercial product.

Precious Leaf Farming vs. Impoverished Grain Farming

2013-05-03T08:22:00.002+08:00

Earn from Lots of Little Bits - Moringa oleifera

The results of the author's 60-day trial of growing Moringa oleifera high-density from seed shows a net earnings from harvesting the leaves and immediately value-adding that is 326% greater than growing rice for its grain over more than 150 days and selling to the middlemen.

The calculated earnings are substantial enough that one hectare may earn sufficiently to eradicate poverty of the farmer who does the growing after only a six-month program period.

Myths Compared to Reality

Moringa grows best from cuttings.

Actually:

Only about 20 to 25% survive and the first harvest period is usually in the following growing season.
They are very sensitive to water, fungi, soil and physical disturbances during the first six months.
There are the exceptions that we all tend to remember not wanting to recall the failures.

Moringa will not grow effectively from seed.

Actually:

It grows quite well from seed and up to 70% survive until the first rainy season.
How many survive through the first rainy season depends on several factors.

Moringa is too tall and hard to harvest commercially and you don't get many good young leaves.

Actually:

When grown high-density by seed and harvested four times per month following the first 33 days it requires bending and stooping to harvest rather than climbing.
100% of the leaves are less than 12 days old after the first harvest, making all of the leaves "good young leaves".

High-density growing of high-value leaves may increase cash flow to a weekly, even a daily frequency. The leaves are ready for the initial harvest after 33 days and about every 9 days thereafter. An entire hectare may be configured so that harvests occur daily.

Harvesting 100% of the leaves

by cutting (not tearing).

The leaves begin growing immediately and the very next day new growth is apparent. Plant count is 70 per square meter at 60% efficiency.

Lopping above 12"

Lopping 6" of the Moringa once it reaches 18" above the soil leaves all of the leaves to continue nurturing the plant and after a week all of the new growth above 12" is cut again. In this 60-day trial lopping has not been as productive as harvesting 100% of the leaves.

Is this the final chapter regarding Moringa? Actually, only the surface has been scratched. The results explained here were achieved empirically and conclusions are drawn by the author. Each step of the way to the market place is being examined as it happens and subsequently posted.

Moringa - One Way Out of the Rice Poverty Trap

2013-04-27T09:49:00.000+08:00

Morigna oleifera

Moringa (Malunggay) is One Way out of Poverty's Rice Trap

Planting Rice

The Problem – status quo

Unfortunately, rice farming remains the primary mono crop in the Philippines while guaranteeing to keep the farmer on the UN’s poverty list. (net 2.7 pesos (US$0.06) per square meter or around a gross of Php8.5 m² (US$0.20))[1].

Harvesting Palay (rice)

Labor-intensive Rice vs. High-tech Wheat Farming

In comparison the USDA reports that the high-tech wheat farmer in the West earns a gross income of approximately US$0.395 per m² (Php 16.6) with a higher margin of profit than is the case for the Filipino farmer who relies on labor intensive technology that is no longer the cost efficient answer that it formerly was thought to be.

Transporting the Palay

Loading Cavans of Palay

Threshing the Palay

Sun Drying

Drying can take several days,
but not overnight, lots of re-bagging.

The Advantage or Disadvantage
Farming conducted in tropical climate, like the Philippines, should enjoy an advantage through proper planning for drainage excesses and irrigation for scarcity. The number of crops can exceed that of the Western farmer who typically has only one wheat crop due to the shorter growing season common there; however the tropical advantage in the Philippines soon loses to what has become a typical comedy of planning errors that inevitably lowers the annual production of rice to less than 1.5 harvest per year. [2]

Wet Matter - Moringa Leaves
worth about Php 6 (US$0.14) after
value-add. Moringa grown from seeds, not cuttings.

One Solution – high-density leaf farming

Moringa oleifera is a tropical tree readily growing in the Philippines as a house tree but not a widespread

After 33 days the leaves are ready
for the first harvest

Each 8 days another harvest. After
60 days net earnings per square meter
exceed both rice and wheat.

commercial crop. Primarily the high-value and highly nutritious leaves are generally consumed within the household while ignoring commercial demand from other parts of the world and even now from higher-end Filipino markets within the Capital Region. With a little innovation leaf production can be successfully commercialized nationwide.

The Way Out – Moringa oleifera grown continuously in High-Density

It is not as easy as it sounds but it is achievable through attaining the correct knowledge and applying the technology effectively.

[1] Extensive field research by the author in remote areas, in the former rice bowl of Nueva Ecija and now in the current rice bowl of San Jose, Occidental Mindoro. Official Department of Agriculture records do not refute such findings.

[2] Primarily the lack of farming infrastructure akin to watershed management leaves the farmer vulnerable to the slightest of adverse weather occurrences and/or extremes.

Joint Venture Partners for Large Scale Agroforestry

2013-01-30T14:46:00.000+08:00

Billions of dollars have been spent on planting trees through various government programs funded through development banks. One such example is the Asian Development Bank ("ADB").

Planting or Growing
Planting is the left side of the equation which is the measurable objective. It is actually impressive at times. "Growing trees" is the right side. However, that requires the variable of time which does not fit so it falls outside the measurable objects.

Greening Program - DILG Philippines

Twenty-three years

is not long for a child

to wait, especially a
newborn

.

When the actual number of trees growing are analyzed and compared to the number planted the results are abysmal.

Researchers looking for successful tree-growing projects funded by the big-boys, well, good luck. If you want to find failed tree-growing projects just examine the history of development banks that no longer offer reforestation programs. That is the first clue that they have failed. Look back in their history until you find reforestation programs, then examine the results which ironically will be very positive concerning the "planting" but will avoid any mention of how many of them actually grew and subsequently it is apparent that they abandoned their reforestation program.

Bureaucrats Can Plant Trees But They Cannot Make Them Grow

The various development banks generally look at a problem such as growing trees from a technical standpoint. When the applicant suggests that there is a sociological requirement that throws a wrench into the works and technical funding is no longer available.

Papua New Guinea - The Joint Venture Approach

Ijiba Grand Corporation Limited in Popondetta, Papua New Guinea is taking a different approach. It turns to the private business sector that wants to make a profit. Large corporations generally have profit at the top of their list of goals and no matter how the list changes the one thing that remains at the top is profit.

Unlike the Philippines the land situation in PNG is vast with a very low population. Much of the technical approach that involves sociology combined with technology that the IVAFMS Foundation is using in the Philippines is modified through the cooperation of IVAFMS. High technology and vastly larger growing areas are available while the integrated diversified organic farming systems and the community based supply chain management continue.

Mile-high Arabica Coffee

Ijiba concentrates on finding joint venture partners who already have very successful manufacturing and/or agribusiness and/or forestry histories using ordinary and customary practices. Ijiba knows that many of these companies are actually sensitive to the trend of organic farming, however the three-year conversion timeline necessary for them to change in their current areas of operation is too costly. As one of the joint venture partners Ijiba offers large tracks of growing land to such companies. The land has never been farmed in most cases and organic farming can commence from Day-1.

Vanilla inside the original forest

PNG is strategically located for penetrating the emerging market of Asia, including S.E. Asia where organic is catching on at break-neck speed. Once organic the customer never wants to go back, regardless of price. About four billion people consume daily in this market and with the economic explosive expansion the amount of discretionary spending per family is climbing almost exponentially. To have a growing foothold inside the market place of tomorrow with supply chain management beginning with community based manufacturing of finished goods ready for immediate and direct retail sale the distribution is the only traditional cost.

Nearly an 83% savings over current operational costs may be passed on to the Joint Venture Partner above the mere percentage that Ijiba retains. Something worth looking into.

Reforesting the Philippines

2013-01-12T07:28:00.001+08:00

Tree Planting vs. Tree Growing

Planting
Excellent of intentions, but will these
tiny seedlings be there after their first
dry season?

Growing
The nursery is aptly named, young
seedlings need to be nursed for two
to three years.

Four Year-Old Trees
One with pride of ownership is worth
all the others.

An agroforester in the Philippines experiences the biggest deterrent to successful reforestation is within the ordinary and customary practices - the mere act of planting is counted rather than the trees growing after three years. Nearly 100% of seedlings planted when less than 1-year old overcome to the heat, thirsty rats, encroaching vines and neglect.

The charcoal maker receives about
US$4.50 per sack after getting it to
the market.

An Annual Net Loss of Trees Nationwide … Charcoal

Charcoal making claims about 17 million trees (small to medium) per year. Government may plant 20 million unfortunately fewer than 10% survive. Because 12 million hectares are designated for forest development with about 2,000 trees per hectare the need is 24 billion seedlings, however some 42,000 barangays (villages) make charcoal causing an annual net loss of about 15 million.

USA debt off-set provides the Philippines a six-year tree planting budget of approximately US$20,000,000 (Php800,000,000). At USD1.88 (P75) per tree the maximum possible plantings is about 320,000,000 or about 1.3% of the government’s goal; unfortunately the mortality rate lowers success to about 0.013%.

Is there another way?

An American agroforester, Joseph J. Reynolds, living in the Philippines for more than 25 years says “Once you get past the third year the trees sustain themselves, mortality may be 60% at first but replanting achieves 100% while placing pride of ownership in local hands makes sustainable forestry a reality.” … “Only pay for the survivors.”

He says trees would sprout everywhere if the government made its program simple: “Applicants need only grow a sustainable forest, however small, supported by the community within four years. Assign land to each responsible plan and let the planting begin, step aside and observe and replicate the successful ones wherever there are failures.”

The Reynolds’ Method

Reynolds often says “Growing trees in the Third World is more of a social event than a technical one” but sees that the concept only confuses many of the bureaucracies, like the USAID, ADB and UN where social and technical planning is kept separate. He continues by explaining his 11-steps to successful growing of a new and sustainable agroforest:

This diagram is borrowed from the USDA, however it

illustrates where agroforestry using the Reynolds' Method

in the Philippines and elsewhere such as PNG is headed.

In the barangays this system starts very small and grows in

concept. The community processes all produce using

modular equipment and machinery that are very easily

operated, maintained, affordable and efficient.

Count growing trees, the number planted as less relevant, three years in the nursery rather than 6 months to a year. The average demographic profile of a small barangay is about 1,000 hectares, 600 farmer-families and 1,000 elementary students.
Place the nursery at the elementary school, provide intermittent hands-on instruction, students find the containers, make soil, find and germinate seeds, use new knowledge.
Each child brings 25 discarded plastic water bottles to the school, cuts them into two sections making twice as many for filing with planting soil for germinating seeds.
Moist areas of ground down-slope from the various barangay hand-pump water wells support colonies of earthworms; vermiculture takes place to produce the planting soil.
There are 25 to 30 varieties from which to collect germination-ready seeds, in the initial trip perhaps 10 seeds of three or four varieties; excess covers expected mortality.
Teacher supervision assures proper development of each student’s one square meter of 50 containers and the germination of the various varieties of local sustainable flora.
Later in the season, students receive instructions before returning to secure additional sets of fresh seeds. Failed germination frees up space and the process begins anew.
The 1,000 square meters is located on the school campus where all can observe, teachers can supervise, children can access in order to care using readily available water and the school campus security guards protect 24/7.
Ecological training is appreciated by all, most of which is volunteered by IVAFMS teaching the teachers.
Initially, students sketch their homes/farms plotting existing flora and showing where the new 50 trees will be planted; teachers visit the homes for inspection and grading.
New batches of students begin their turn starting in Year-2, the first batch attends high school and continues learning about the greater value of a living tree versus a dead one.

By the fourth year the community has enlightened future leaders, is sustainably “growing” 50,000 new trees annually and is responsible for 200,000 total trees growing throughout the barangay, at negligible cost. Students eventually take on their civic responsibilities using their practical experience and tree ownership, effectuating new public policy.

Nationwide Reforestation is Possible

In Capiz many farmers grew trees totally on their own initiative. Once

shown
the way,
especially if the community
is able to process the results

locally, the power of voluntary
replication may be exponential.

When one barangay can achieve how about 40,000 plus barangays? “Growing” trees will number a staggering 8.4 billion or about 1/3 those needed nationwide with an additional two billion annually. Voluntary replication will achieve the rest at minimal cost. Karsten Klapp, visiting from Germany, asked that this article be written after he peaked under the radar and saw IVAFMS Foundation working the program, something which the foundation will continue.

The Poverty Challenge in the Philippines

2012-09-07T16:04:00.002+08:00

When I Had Money

The author had a fortune and numerous problems. He threw his money at the problems and the only thing that went away was the money.

ADB, World Bank, Government Agencies, Whomever

Lessening, alleviating or eradicating poverty has been in every mission statement of the major public and private institutions for the longest time with literally billions of dollars thrown at missing the goal. The only thing that changes is the goal when after each failure the bar is lowered, the mission statement rewritten and poverty increases.

Poverty's Mainstay: Palay (Rice Prices), Merely an Example

It takes 10,000 square meters to produce the 100 cavans of rice, averaging 60 kilograms, per harvest every four months, but generally only two times per year due mostly to weather conditions.

Link to source ("Philippines Bureau of Agricultural Statistics") The small print says that for the past year the average at gate price for a kilogram of rice is P17.15.

Palay (rice) Production Per Hectare

"On the income aspect, the average yield per hectare is at 100-cavans of palay," [rice] "valued at P750 per cavan (farmgate price of P15/kg or about P75,000. Net income would range to P19,985 for the 4-month cultivation or about P5,000 per month. But with the use of motor pumps for irrigation, they would be indebted by P2,400 or P600 per month." Link to source ("The Alyansa ng mga Magbubukid sa Gitnang Luson (AMGL, Farmers Alliance in Central Luzon"))

The Bottom Line is P2.7 per Square Meter, No Escaping That

The rice farmer may clear two crops per year - seldom three - and earn a net of P4,400 per month from one hectare, which is the average now, down from three hectares. The net of P17,585 per hectare is doubled in a year following two harvests for a total net earnings per square meter of P3.5. Half of the production is in the rice belt in Nueva Ecija however the other half of the producers do not average as well and tend to bring the total down closer to P2.7 per square meter net.

Escape Poverty

In order to escape poverty in the Philippines the farmer (family of five) must earn for his pocket at least P15,000 per month or at least net P18 per square meter. Even in the Rice Belt this amount of income is out of reach for most farmers. Continued research reveals the same kinds of articles written repeatedly year-in and year-out.

It Does Not Change.

One must ask the sarcastic question: "Who is the 'genius' who is expecting different results by repeatedly advocating the same thing each growing season, each year?" The same thing is to continue to grow a low-value crop that will only yield what it yields, and that is it, no more, certainly not enough to address the poverty issue.

Growing Trees is Different, High-Value Too

Ilin Value-Added Forestry Management Services Foundation says that if a farmer properly grows 10,000 Mahogany trees for 23 years on one hectare he can harvest a net income of P2,520,000 (P252 per square meter) every year for 33 years - he must abandon the "ordinary and customary" ways of harvesting trees - if he uses sustainable reforestation and agroforestry principles the income will not only be indefinite it will also increase.

Where does the money come from for the first 23 years? That is always the question. There are several solutions but first ask the question, "Under the current methods of rice growing where will the money come from to pay the farmer to continue "existing" in poverty and actually sliding even more? Most of the farmers are 60+/- years old and most of their children have left and others are leaving the farm. "What will the current trend do for the farmer if it continues?" might be a more appropriate question to consider.

"Macroeconomics: Economic Policy and Rice Security in the Philippines" by Kristina Manalo, 2010 is a report of a research assignment by a student at Oxford. It documents several facts about rice production and consumption and emphasizes the point that the Philippines is the largest importer of international rice in the world and that at times the retail price is below that of the domestic at gate price.

Now that I Do Not Have Money I am Succeeding at Reforesting

Mahogany at 12 years.
Cacao can be grown nicely in
the shade of the tall trees.

Reforestation is not that difficult once you throw away the book on how to do it. There is nothing ordinary and customary about the Philippines loosing what could be argued was its most valuable natural resource - the forest. There is nothing positive that is sustainable about total destruction except that it challenges large financial efforts to throw money at reforestation. The technology that is considered text book simply is not affordable, does not work and should be abandoned for what it is: a waste of good intentions and money.

Grassroots

As an island nation the estuary
may be re-established by planting
mangrove trees. These are 4 years
old and withstand stormy waters.

Look to the grassroots, place the future benefits of the rebuilding of the natural resource in their hands. Recognize that reforestation is first a social problem and secondly a technical problem.

On average one Mahogany seed pod
has 48 excellent seeds out of the more
than 65, about 50 pods per tree or about
2,400 seeds ready for the seed bed per
tree. Each barangay on average has
more than 200 seed bearing trees. A
total of around 480,000 seeds at no
cost. A savings of more than 10,000
pesos (US$250).

The design of a new forest should start with the seeds of the more than 20 species of locally present flora that produce fruit, nut, sap, fiber, medicinal, herbal and biomass. The cost is negligible to propagate what is already available.

Tomorrow's custodians of the forest are today's elementary students.
Most barangay schools, especially in the province, have a barren hectare of land on or adjacent to the school property. That is the site of the nursery and hands-on training and ecological appreciation courses for the students.
Each child is assigned 50 sprouts and is taught over the next two years how to care for them.
After which the 50 seedlings are transported to the student's home and planted where the student conducts his homework for the next year.
The average barangay has at least two elementary schools and a total of at least 1,000 students.
Fifty thousand producer trees coming online each year in each school is simple arithmetic and the addition turns to multiplication with answers that require exponents.

Neem seeds are plentiful during the
summer, they germinate easily. No
cost, more savings.

All of this for pennies-on-the-dollar or centavos-on-the-peso.

The Challenge

IVAFMS Foundation can successfully achieve the above goal at an embarrassingly low fraction of the budget of the large institutions and with a hand full of staff. We all must no longer sit by and watch. It is time to move on.

Each seed is a future high-value fruit
tree. No cost, more savings.

Sponsorship

In 23 years these children will be in
their early 30's. A sustainable monthly
income of P250,000 (US$5,250) would
be First World. Don't they deserve it!

If you want to make a difference and grow trees rather than just plant them please reply with a comment and contact information. We will gladly share our plan and work together as a group of three managers and 10 equipped staff who will achieve more in three years than the giants have achieved in the last three years. Only serious offers please. We require one sponsor per year for three years. Thank you in advance.