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ADMINISTRATOR’S PRIORITIES FOR CY 2015

ALL our development efforts are intended to make the difference for the local tobacco industry, for the betterment of the lives of our tobacco farmers.

Corporate Priorities

1. Market-driven Quality Tobacco Production, addressing the growing demand for domestic manufacturing and export markets, primarily through the Tobacco Contract Growing Systems (TCGS) that will include the production of improved and full flavour/blending type tobacco. This also includes:

• The technology development activities and services

• The search for outstanding tobacco farmers or Tobacco Grower of the Year contest

2. Integrated Farming and Other Income Generating Activities (IFOIGAP), where we provide assistance to tobacco farmers in the production of rice, corn, and high-value crops (vegetables), and hog and poultry raising. The project includes value-adding/processing:

• AgriPinoy Tobacco Farmers Food Processing Plant and Trading Center in Ilocos established in 2012;

• Milling Complex in 2013; and

• New project: Integrated Crop and Small Ruminants Production and Processing for Tobacco Farmers which involves the training and grant of production assistance to tobacco farmers and associations on livestock, organic fertilizer production and the provision of village-type food processing equipment and supplies.

3. Renewable Fuelwood Energy Farm Project and Restoration of Ecological Integrity, to address the fuelwood requirement of the farmers in the flue-curing of Virginia tobacco, as well as assist in the reforestation efforts of the tobacco growing regions.

4. Continuing Exercise of Regulatory Authority under existing laws. At present, we have covered production and trading of leaf and the importation and exportation of tobacco leaf and tobacco products. We expect to cover next the processing of leaf and the manufacture, distribution and sale (wholesaling and retailing) of cigarettes, with emphasis on the compliance to standards, detection of fake products and shelf life.

5. Farmers’ Organizational Development, to include continuing registration of farmers, strengthening farm clusters, organizational development and livelihood assistance, to enable the farmers to become self-reliant, food-secured and become active partners of development.

6. Continuing Research and Development of pioneering ventures (the other industrial uses of tobacco), to include among others, the enhancement of technologies and profitability of the production of tobacco dust, tobacco handmade paper and tobacco extracts as pesticide for vegetables, fruits and ornamentals.

7. Quality Assurance for Tobacco Leaf and Manufactured Products, to concentrate on the provision of services that ensures the quality of land, water, fertilizer and leaf tobacco, including the continuing study and monitoring of physical and chemical quality of cigarettes, as an input to continuing technology adjustments, standards formulation and effective regulation enforcement and compliance. This also includes upgrading/capability building, to include techno-physical, technical manpower and management systems and procedures.

8. Scholarship Program for Tobacco Farmers’ Dependents. Continuing increase in the coverage of the program, in collaboration with the CHED and TESDA, in Regions 1, 2, CAR and other tobacco-producing areas. The scholarship includes baccalaureate and technical/vocational courses, preferably in the field of agriculture.

Farmer’s Welfare

• Allocation of P80-M production assistance that will benefit 3,635 farmers. Under the program, we expect to increase the farmer’s average income by 5% from P58,456 in 2014 to P61,378 in 2015. The assistance will also enable them to adopt the recommended technology for quality tobacco production from seedbedding, land preparation, procurement of farming inputs, irrigation and curing of their tobacco.

• Formulate a unified production technology in consultation with the research/production specialists of the tobacco producers/buyers to insure greater yield at least possible cost and also acceptable by the end-users.

• Make sure that appropriate fertilizers and pesticides are made available to the farmers at lowest possible cost to ensure higher yield/quality of tobacco and net income.

• Arrange with the major buyers for the purchase of all tobacco produced at the best possible price. Have dialogue with tobacco companies to find ways to reduce their importation of tobacco leaves and to use more of our locally produced tobacco leaves.

• Continue the conduct of values orientation of all farmers to inculcate Good Agricultural Practices and good values with emphasis on efficient financial management.

• Hold continuous consultation with the local leaders to ensure that tobacco excise tax funds are properly implemented, based on the modified guidelines on the release of funds set by the national government, per implementing rules and regulations of RA 10531; and to ensure that local shares from excise taxes will be used for the benefit of tobacco growers and workers and communities in the tobacco-growing areas.

• To coordinate with local government units to address the problem on quality of tobacco as we have been experiencing this year, in anticipation of another long draught, by providing more irrigation pumps; constructing more flue-curing barns to ensure proper curing of tobacco and minimize losses due to poor quality; providing more fertilizer input, gasoline, and farm implements.

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