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In line with the pronouncement of Her Excellency President GloriaMacapagal-Arroyo, the Agency, being the only tobacco agency continues to implement vital activities primarily catering to the needs of small tobacco farmers which are congruent to the Administration’s thrusts primarily on Poverty Alleviation, Food Security, Increased Incomes and Empowerment of the Farmers and Fisherfolks, Global Competitiveness, Job Generation, and Creation of New Agribusiness Activities; and within the purview of the mandates under Executive Order No. 245, series of 1987, the Agency was able to accomplish the following three most significant accomplishments for the third quarter of CY 2007:

4. STATUS ON THE ESTABLISHMENT OF QUALITY ASSURANCE LABORATORY IN THE CENTRAL OFFICE

Establishment of Quality Assurance Laboratory at the 6^th Floor of the NTA Building

• Analytical laboratory equipment, prejudicial to the conduct of our research and regulatory procedures, have been imported - 20 port smoking machine, cigarette test module, gaschromatograph, near infrared spectrophotometers, analytical balance, water distiller, laboratory shaker, ph meter

• Laboratory furniture, safety hood and glasswares have been purchased

5. TOBACCO DUST PRODUCTION

While maintaining the Pilot Tobacco Dust Production Plant in Meycauayan, Bulacan to maximize its research and development in the production of quality tobacco dust preparatory to the establishment of the Tobacco Dust Manufacturing Plant in Brgy. Fernando, Santo Tomas, La Union, and to sustain supply of the requirement of the three priority municipalities of Region III (Paombong, Bulacan; Guagua, Pampanga; and, Balanga, Bataan), the Agency has accomplished the following activities as of to date:

At the Meycauayan Pilot Tobacco Dust Production Plant

• Concluded the technology demonstration in 12 sites in Region III (Bulacan, Pampanga, Bataan) on the use of tobacco dust, as molluscicide, to replace the long-banned, highly toxic, cyanide-based chemicals, and as fertilizer, in fishponds, in collaboration with DA-BFAR and DOST/PCAMARRD.

• Pilot commercialization is ongoing with the production of 77,755 kilograms or 3,111 sacks of Tobacco Dust Plus ready for delivery

• An aggregate total of 154,634 kilograms of raw materials for has been hauled from the different sources

At the proposed Manufacturing Plant in Brgy. Fernando, Tubao, La Union

• Acquisition of the lot has already been completed and verification of property already done with the placement of mojon
• A total of 1,112 hectares has already been identified for the planting of tobacco for tobacco dust production. 
• Construction of the proposed Plant will be scheduled for bidding pending release of the budget for the purpose

1.  INTEGRATED FARMING AND OTHER INCOME GENERATING ACTIVITIES PROJECTS (IFOIGAP) IFOIGAP – Tobacco Component - For Crop Year 2006-2007, a total of 38,340 tobacco farmer-cooperators (FCs) tilling an aggregate area of 24,302 hectares, disaggregated into all tobacco producing provinces of Region I, II, III, and IV, has been targeted for the Agency priority project of Quality Tobacco Production (QTP). A total of 11,519 FCs with an area of 7,698.39 hectares will be under the Tobacco Contract Growing System and the project is expected a total yield of 19 Million kilograms of quality tobacco. Of the above total, 1,998 FC’s, tilling an aggregate area of 1,490.3 hectares, have been extended production assistance amounting to PhP 42 Million, from the PhP 60 Million Agricultural Credit Policy Council (ACPC)- QUEDANCOR AMCF-Credit Line Facility in support of the market-driven quality tobacco production through the NTA’s Tobacco Contract Growing System (TCGS). B) Vegetable Production - Technical and production assistance have been provided to 940 farmer-cooperators tilling an aggregate area of 47 hectares. A total volume of 430,000 kilos of assorted had been produced with an estimated valued of PhP 9 Million. IFOIGAP – Other Component -  A) GMA Rice - For Wet Season 2006, the Agency has extended assistance to 3,394 farmers tilling an aggregate area of 2,999.80 hectares. A total volume of 15,762,703.25 kilos rice had been produced with an estimated value of PhP 161,086,032.90 hence, an additional income to tobacco farmers. Maintaining this project, a total of 7,900 farmers tilling a total area of 3,950 hectares is targeted for assistance for wet season 2007, the identification of areas and recruitment of farmer cooperators for which are in progress. 2.  PGMA - MULTILINE FOOD PROCESSING PLANT OPERATION  Highlights of operation includes:   Piglets dispersal to tobacco farmers continue to be undertaken - a total of 969 piglets were dispersed to 323 tobacco farmers as  date. Assistance include feeds, medicines and veterinary services. Purchasing of hogs delivered by tobacco farmers that met PGMA-MFPP standards and started purchasing from the initial batches of dispersed/fattened pigs of the farmers - 898 hogs from 299 farmers, valued at PhP 7.081 million Hogs butchering/slaughtering Meat Products Processing ((Vigan Longanisa, Bagnet, Hotdog, Pork Tapa, Tocino, and Barbecue) Contract Growing for Broiler Production with Farmer Cooperatives - Constructed four (4) poultry houses in Ilocos Norte (1), Ilocos Sur (2), and La Union (1) Started Purchasing chicken from the initial batch of Contract Grower (Aguing, MPCI, Sinait, Ilocos Sur) Chicken Dressing - total of 38,714 chickens had been dressed in the plant as of date Fruit processing: 1) Conducted trial production of banana chips, 2) The quality of the banana chips produced passed the standards of the Food and Nutrition Research Institute (FNRI) 3) Banana Chip production is now ready for commercialization. Vegetable Production - Purchased a total of 430,000 kgs of assorted vegetables  (ampalaya, pole sitao, eggplant, finger pepper, squash) with acceptable quality under the contract growing arrangement with tobacco farmers. A total of PhP 9 million production assistance was extended to farmer-cooperators tilling an aggregate area of 47 hectares and realizing a net profit of PhP 115,000 per hectare. Operation of Feed Mill - 1) Conducted of trial production of hog starter for distribution to farmer-cooperators under the Hog Fattening Project 2) A total of 177 farmer-cooperators (FCs) tilling an aggregate total of 125 hectares were involved in the production of hybrid corn. 3) Production Assistance extended to farmer-cooperators amounted to PhP 2.18 M with 94.3% recovered/collected as of date 4) Volume of corn produced by the farmer-cooperators is 627,500 kilos Marketing Activities Delivery of lower-priced meat and meat products to employees, on salary deduction basis in Ilocos Sur and Quezon City Delivery of fresh meat and processed meat products continue with the Barangay Food Terminals, with the assistance of the Department of Agriculture/Agribusiness and Marketing Assistance Service (AMAS) Negotiation with government agencies/offices/ bureaus/ corporations, including government hospitals, and Local Government Units in Regions I, II, CAR and Metro Manila for the supply of meat and meat products, at lower prices and on salary deduction scheme - 1) Signed two (2) Memorandum of Agreement (MOA) for institutional marketing of PGMA-MFPP products, with the National Electrification Administration (NEA) and the Philippine Coconut Authority (PCA) 2) Project presentation conducted and follow-up continues with targeted 35 agencies including the Department of Agriculture (DA), Department of Interior and Local Government (DILG), the National Statistics Office and Lung Center of the Philippines 3)Opened PGMA-MFPP Meat Shop- Metro Manila Outlet, at the ground floor of the NTA Building, Quezon City (to be inaugurated/blessed during the NTA’s 20th Anniversary) Quality Assurance Completed the Manuals on the Good Manufacturing Practices and Sanitary Standard Operating Procedures of the Slaughterhouse and Meat Cut Floors of the Plant for submission to the NMIS 3.  TOBACCO TRADING OPERATIONS For this Tobacco Trading for CY 2006-2007, the NTA recorded the following tobacco acceptances, per tobacco type:   TOBACCO TYPE KILOS VALUE (PhP) Virginia Leaf 23,237,473.58 1,196,223,408.36 Burley Leaf 8,221,474.50 418,424,020.46 Native/Dark Leaf 9,641,117.00 341,485,896.00 TOTAL 41,100,065.08 1,956,133,324.82

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