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Presented to Forest Management Bureau DENR, Quezon City, February 8, 2011

Climate Change Resilience with Macadamia – Arabica coffee Agro-forest Project in Philippine CBFM, Watershed and. CLIMATE CHANGE RESILIENCE WITH MACADAMIA-ARABICA COFFEE AGRO FOREST PROJECT IN THE PHILIPPINES, CBFM, WATERSHED AND CADC/CADT AREAS. Presented to Forest Management Bureau

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Presented to Forest Management Bureau DENR, Quezon City, February 8, 2011

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  1. Climate Change Resilience with Macadamia – Arabica coffee Agro-forest Project in Philippine CBFM, Watershed and CLIMATE CHANGE RESILIENCE WITHMACADAMIA-ARABICA COFFEEAGRO FOREST PROJECT IN THE PHILIPPINES,CBFM, WATERSHED AND CADC/CADT AREAS Presented to Forest Management Bureau DENR, Quezon City, February 8, 2011

  2. Current Forest Situation • Objectives • Project Area Coverage • Project Description • Organization and Management • Financial Plan Topics

  3. About 7,665,000 ha or 25.7% of Philippines is forested, according to FAO. • Of this 4.6% ( 352,000 ha ) is classified as primary forest, the most bio-diverse and carbon-dense form of forest. • Philippines had 352,000 ha of planted forest. • Change in Forest Cover: Between 1990 and 2010, Philippines lost an average of 54,750 ha or 0.83% per year. • Between 2000 and 2005, the rate of forest change decreased by 20.2% to 1.98% per annum. Philippines. • In total, between 1990 and 2005, Philippines lost 32.3% of its forest cover, or around 3,412,000 hectares. • Andbetween 1990 and 2010, gained 16.7% of its forest cover, or around 1,095,000 ha. Current Situation

  4. Philippines's forests contain 663 million metric tons of carbon in living forest biomass. Biodiversity and Protected Areas: Philippines has some 1196 known species of amphibians, birds, mammals and reptiles according to figures from the World Conservation Monitoring Centre. Of these, 45.8% are endemic, meaning they exist in no other country, and 14.7% are threatened. Philippines is home to at least 8,931 species of vascular plants, of which 39.2% are endemic. 5.1% of Philippines is protected under IUCN categories I-V. Current Situation, cont.

  5. Five key issues/concerns were identified under the forest ecosystem that needs strategic actions. These are: • 1) expanding marginal, degraded, unproductive upland areas led to climate change • 2) unsustainable management of remaining forests; • 3) under-utilization of non-timber resources; • 4) weak institutional capability for forest management; and the need for policy reforms. • 5) poverty incidence of 44% among upland farmers, IPs Current Situation, cont.

  6. Approximately 75.83% of Arabica & Robusta Coffee and 100% of macadamia is being imported • Economic Dependency of Energy Source • Growing effect of Greenhouse Gases on the environment • Fuel prices steadily increasing causing public concern- cost of inputs, transport, labor • The need to pursue a Nation Wide Road Map to assure the continuous growth of the alternative reforestation high value agro-forest tree crops industry. Current Situation; cont.

  7. Determine the economic feasibility of the macadamia andarabica coffee as reforestation tree crops Growing demand for planting materials Awareness and interest in macadamia and arabica coffee growing High demand, limited supply of macadamia nuts world wide – 2%, coffee steadily increasing demand Current Situation; cont.

  8. Need to create the agro-forest infrastructure to create a sustainable source of macadamia and coffee, alleviate poverty and resilience to climate change • Training on Planting , Production and Processing Technology • Nursery (Propagation) • Seeds Selection • Clonal Rooted Cuttings • Tissue Culture • Tree Crops Plantations in CBFM, CADT/CADC, Watershed Areas • Buying and Processing Centers Current Situation; cont.

  9. Macnut Philippines recently spearheaded the propagation and production of macadamia and arabica coffee • New investment ventures looking at creating operations to produce macadamia and arabica coffee in the Philippines. • Macnut Philippines providing propagation material to plant initially 20,000 hectares or the equivalent production of 3,000 tons of macadamia nuts and 40,000 tons of arabica coffee Current Situation; cont.

  10. To plant macadamia and arabica coffee as reforestation and income generating tree crops To alleviate poverty, empower and improve the lives of the CBFM, CADT/ CADC holder beneficiaries To improve upland productivity through introduction of sustainable, climate change resilient farming and environmental protection technologies – natural farming Project Objectives

  11. Table 1. Land utilization in the Philippines Administrative boundaries

  12. Table 2. Area, production and value of production of five important crops, in 2008

  13. Region I – 1,500 • CAR - 1,000 • Region III - 1,000 • Region IV - 1,000 • Region V - 1,000 • Region VI - 1,000 • Region VIII - 1,000 • Region IX - 2,500 • Region X - 4,000 • Region XI - 2,000 • Region XII - 1,000 • Region XIII - 3,000 Total (Has) - 20,000 PROJECT AREA COVERAGE

  14. Reforestation Tree CropsMacadamiaArabica coffee

  15. Macadamia(integrifolia sp. & tetraphylla sp.) • Arabica coffee (Coffeaarabica sp.) • Legume shrubs/ trees as hedge row (Flamengia, Ronsonii, Leucaena, etc. for Sloping Agro-forest Land Technology) Reforestation Tree Crops

  16. Macadamia • Grows 60 feet tall, life span of 60-80 years for grafted & 150 years for non-grafted trees • Grafted trees bears fruit within 3-5 years while non- grafted trees bear fruit within 7-10 years, yield: • Trees are not invasive to the environment, used primarily for reforestation in Hawaii, • adoptable in Philippines, in higher elevations with cool climate • Population per hectare 80 trees on mixed cropping system • Population: per hectare – 300 trees with coffee intercrops Tree Crops

  17. Macadamia • World’s most nutritious nut and no cholesterol, 87% mono-unsaturated fats and 3% poly-unsaturated fats • Macadamia oil is superior with higher smoke point of 210.75 degrees Centigrade Tree Crops

  18. Macadamia • In demand on the world market • Have longer shelf life compare to other crops • Perceived to be secured, assured and profitable future • Substantial source of income • Generate and create jobs • Potential source of energy for its nut shells as fuel for steam to generate clean, renewable electricity Tree Crops

  19. Arabica Coffee • Grows 10 feet tall, life span of more than100 years • Bears fruit within 18 months, ave. 1.5-2.0 t/ha • Can be intercropped with taller tree crops • Adaptable in Philippine highlands -700 meters and above • Considered to be the best quality coffee variety Tree Crops

  20. Arabica Coffee • In demand locally and in the world market • Have at least 1 year shelf life • Perceived to be secured, assured and profitable future • Substantial source of income • Generate and create jobs Tree Crops

  21. COMPONENTS • Community Organizing & Development - Organize / orient stake holders- national, regional, Provincial and municipal agencies involved - Organize / Orient upland farmers, people’s organizations about the Project - Conduct continuing education program - Monitor and evaluate activities Project Description

  22. AGROFOREST AND ENTERPRISE DEVELOPMENT 1. Planting of macadamia and arabica coffee I CBFM, CADT/ CADC and watershed areas 1.1 Diversified Farming with Macadamia- Arabica coffee – 70% tree crops, 30% food crops mix (rice, vegetables, citronella, lemon grass) 1.2 Macadamia will bear fruit on the 4th year- 80 seedlings/ ha. 1.3 Arabica will bear fruit on the 2nd year- 1660 trees/ha Project Description

  23. Diversified Farm Crop Mix 1.4 The food crops planted between macadamia and coffee, two cycles for the next two years 1.5 Macadamia Yield: 10 kg/tree, 80 kg/ha/yr at Ps 600/kg 1.6 Arabica Coffee: 2 tons / ha/ year at Ps 80/ kg Project Description

  24. Macadamia- Arabica Coffee Strip Cropping System 1.1 A combination of rows of macadamia and coffee with a population of 300 trees and 2,500 trees per hectare 1.2 Planted in between two hedge rows using SALT system 1.3 The macadamia is spaced 6m x 6m 1.4 Arabica coffee is spaced 2m x 2m Project Description

  25. Hedge rows shall be established using leguminous crops (Flamengia, Ronsonii, Leucaena, Gliciridia, Calliandra,Caloahyrus, Indigofera etc.) • The identified beneficiaries shall implement the setting up of 1 hectare strip cropping system per farmer using the recommended technologies. • The Project shall be implemented in cooperation with DENR through its field offices Project Description

  26. Nursery/Plantation

  27. PROJECT IMPLEMENTATION 12 to 24 months 2 20 , 000 Hectares Development e s Period a h P 6 to 12 months 1 5 , 000 Hectares e Development s a Period h P s 0 to 6 months u 10 Ha . e Development l c NUCLEUS u Period N

  28. 1 - hectare nucleus farm 10 x 5 x monocrop intercrop 3 x Large Scale Plantation Development 10 ha 1,000 - hectare plantation 5,000 ha 5,000 - hectare plantation 20,000 ha monocrop intercrop

  29. Production Cost Items Processing Refining Nursery Plantation • seeds • irrigation • labor & overhead • fertilizer • land lease • training • CBFM seedlings • irrigation • labor & overhead • fertilizer • land preparation • transport • weeding/pruning • training • harvesting • PO expelling • building • labor & overhead • plant maintenance • transport • storage • Macnut • building • overhead • plant maintenance • transport • storage

  30. Social Economic Effect

  31. Lower price inputs • New crop source of income from Marginal and Idle land • Additional Source of income to farmers of traditional crop • Provide a source of income to indigenous people • Provide jobs to womens groups (Nursery, Soap Production) • Create new business opportunities (bi-products) Social Economic Effect

  32. Meeting Growing Global Demand for Macadamia and Arabica coffee” • Macnut objective is to become a global, sustainable producer of competitively priced • We aim to meet the world's growing demand for more green organic food • To deliver a consistent high volume output of sustainable high quality macadamia and arabica coffee products • We are building a global portfolio of planting and refining operations and we believe production in volume for the long term is the most profitable way to maintain our lead. d • Macnut is commercially driven with a business model that adresses the pressing national and global issues of food security, climate change, poverty alleviation and sustainable development.” • With an Immediate Goal of planting 3,000 hectares for 2011 for the Philippines Technology

  33. Financial Plan

  34. Diversified Farm Crop mix .3has cost and return analysis for one year (first year)

  35. Diversified Farm Crop mix .3has cost and return analysis for one year - 2nd & 3rd year

  36. Diversified Farm Crop mix .3has cost and return analysis for one year - 7th year

  37. Diversified Farm Crop mix .3has total cost and return analysis from 1st year up to 7th year

  38. Financial Plan

  39. Financial Plan • Macadamia 30 kilos/tree X 300 trees/ha X 200/kilo • Arabica 80/kilo X 2,000 kilos (2 tones)

  40. Thank You

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