MAITUM, Saranggani Province – In the uplands of this town, bordering Cagayan de Oro City, Ruben Gicabao and wife Lilibeth run an agri-business trading company which helps support the livelihood of some 500 small farmers in their community and neighboring areas who plant cassava, a nutrient-dense root vegetable used as raw material in food processing.
Leaving his job in Manila after his father passed away in 2004, Ruben decided to revisit his father’s hometown in Cagayan de Oro City where he would eventually expand his father’s cassava trading business, the Agri de Oro VMB Marketing.
The company started its operations by purchasing cassava from small farmers within their 50-meter radius in the neighboring towns of the Provinces of Bukidnon and Misamis Oriental.
“We process the cassava from the farmers to produce granules which are sold to feed mills and traders. But as the demand for cassava chips rose over the years, my wife and I realized that we needed more capital to purchase enough cassava from more farmers, at the right and justifiable price,” Ruben said.
In 2008, the couple applied for, and was granted a short-term loan (STL) assistance from Land Bank of the Philippines (LANDBANK), which enabled them to work with about 500 small farmers who plant cassava, even just in their own backyards.
Ruben also employs up to 30 laborers for his agri-business, helping provide employment for the local community. On top of this, he would sometimes offer financial assistance to the farmers when cassava is not yet in season, as he understands the financial challenges of small farmers in terms of capital.
“Through LANDBANK’s assistance, we were able to expand our business and market. Currently, Agri de Oro VMB Marketing already distributes cassava chips to big companies like San Miguel Foods Corporation, Bounty Fresh Food, Inc., New YUNG Yang Felan Farm, and Agricola, to name a few,” Ruben added.
More than just cassava trading, Ruben’s agri-business continues to support not only his own family, but also the small farmers, their families, and the local community. To date, LANDBANK has supported Agri de Oro VMB Marketing through financial assistance worth Php20 million, promoting inclusive growth especially in unbanked and underserved areas.
LANDBANK provides financial assistance to agri-businessmen like Ruben, who are the unsung catalysts for countryside development and poverty alleviation. It is the biggest credit provider to small farmers and fishers, and microenterprises among government financial institutions.
In 2019, LANDBANK’s loans to the agriculture sector reached P236.31 billion, exceeding its yearend target of P231.25 billion. Of this amount, P44.82 billion were outstanding loans to small farmers, fishers, cooperatives, and farmers associations, while P191.49 billion were loans to other players in the agri-business value chain.
