DOST 7 HIGHLIGHTS OF SET-UP ACCOMPLISHMENT CY 2007 In CY 2007, there are 42 SET-UP projects in the region. (Tables 1,2 & 3 show the distribution of these projects by province and sector. Tables 4 & 5 and Figure 3 show the SET-UP core fund investment by sector and year.) Table 1 SET-UP Projects in Central Visayas Year Core Funded 2007 2002-2006 9 35 Non-core Funded 33 112 Total 42 147 Table 2 SET-UP Projects in Central Visayas by Province Province Core Funded Bohol Cebu Oriental Negros Siquijor TOTAL 7 15 4 9 35 CY 2002-2007 Non-Core Funded 29 49 22 12 112 Total 36 64 26 21 147 Table 3 SET-UP Core Funded Projects in Central Visayas by Sector Per Province Sector Food Processing Furniture Gifts & Holiday Decors (GHD) & Fashion Accessories Metals and Engineering Marine & Aquatic Resources TOTAL BOHOL CEBU 5 2 4 5 2 3 CY 2002-2007 ORIENTAL SIQUIJOR NEGROS 1 5 3 2 1 1 1 7 15 TOTAL 15 10 4 5 1 4 9 35 1 Table 4 Direct Investment to SMEs by Sector (SET-UP Core Fund) SECTOR Food Processing Furniture Gifts & Holiday Decors (GHD) & Fashion Accessories NO. OF PROJECTS 15 10 Metals and Engineering Marine & Aquatic Resources GRAND TOTAL INVESTMENT, P 5,180,200 3,933,778 4 1,161,691 5 3,299,000 1 718,411 35 14,293,080 Table 5 Direct Investment to SMEs by Year (SET-UP Core Fund) SET-UP CORE FUND INVESTMENT YEAR NO. OF PROJECTS 2002 2 526,221 2003 5 3,284,098 2004 4 1,002,250 2005 8 2,404,511 2006 8 2,952,000 2007 TOTAL 4,124,000 27 14,293,080 2 HIGH IMPACT PROJECTS DOST 7 assisted DOST 5 in the assessment and implementation of the High Impact Project “Improving Quality of Dried Fish Through Advanced Drying Technology”. A Memorandum of Agreement was signed by the Local Government Unit of Calabanga represented by Mayor Evelyn Yu, the DOST 5, represented by its Officer-in-Charge, Dr, Maripaz L. Perez and DOST 7 represented by Eng. Rene Burt N. Llanto, signifying the responsibilities of each party. The DOST 7 facilitates the fabrication of the mechanical fish dryer fueled by bio-mass. The fabrication started on October of 2007 and expected to be completed on January 2008. The community-based enterprise project for the upgrading of dried fish and squid production in Bantayan Island, Cebu is now gaining grounds in the island’s fish processing industry as it completed its facilities on March 2007. Commissioning and test run operations were conducted last April, May and June 2007. Full swing operation is expected to start by the first quarter of 2008. CAPABILITY BUILDING IDEA (Inter-Agency Design & Engineering Assessment) Team To enhance the capability of the members of the Visayas Cluster IDEA team in supporting the implementation of SET-UP projects in the region, the team was trained on the following: Practical Approaches to Problem Solving and Preventive Maintenance and Monitoring System. The three IDEA teams from DOST 6, DOST 7 and DOST 8 are now equipped with monitoring & assessment devices and machineries that could help the team in the monitoring and assessment of machineries and equipment of SET-UP projects. DOST 5 IDEA Team also joined the two training sessions. Energy Audit Team The DOST 7 also initiated the organization of Energy Audit Team (EAT) in the DOST Visayas Cluster. Two training seminars were conducted to develop the capability of the regional offices in energy audit. A set of monitoring and testing equipment were purchased to support the different activities of the team. The Team was also able to link with JETRO for initial audit of five (5) firms in Cebu. The team is composed 3 of DOST 7 personnel, representatives from academe, practicing professionals, and representatives from business organizations Food Safety Team Through the initiatives of DOST 7, in cooperation with the Provincial Government of Bohol, Bohol Chamber of Commerce and Industry and the Department of Trade and Industry, another Food Safety Team based in Bohol is being developed. Capability building of the team started on September 2007 and is expected to be completed in eight months. There are eleven trainees who are currently undergoing the tedious training program for food safety. Development of and Interregional Value Chain to Support SETUP Projects The four materials reconnaissance missions this year and a forum on value chain development concluded the implementation of this SET-UP assisted project. The project was able to identify areas with high potentials in supplying raw materials to the furniture industry. The project provided an avenue for suppliers and manufacturers to have a dialogue and discuss issues and concerns & recommend actions or strategies to address the problems presented. The suppliers were able to have new perspective on the transformation of the raw materials they supplied to furniture companies into high value products. This made them further appreciate their key roles and contributions to the value chain. The manufacturers and designers were able to meet the people behind the materials and observe the handling and transport of the materials increasing their perspective of the value of the material. 4 The following new business generated by the missions: 1. Coordinated the linkage for the supply of rattan poles between Mr. Antonio Yu of Tago, Surigao del Sur and Cebu Furniture companies -- Diamond Cane International and Tabok Workers Multipurpose Cooperative 2. Total Woodkraft, a furniture shop in Alburquerque, Bohol, contracted Tabok Workers Multipurpose Cooperative to supply furniture items and furniture components for their furniture production in Bohol 3. JCL Exports, a Cebu-based furniture firm was linked by the project to de Lara’s Novelty for the supply of agsam. 4. There are a number of lessons learned by the project. These are as follows: 5. Dialogue among suppliers, subcontractors and manufacturers/ exporters to identify issues, concerns is very essential to address issues and concerns in the development of value chain. This would provide an avenue for the value chain stakeholders to formulate and recommend concrete actions and strategies to address the problems in the chain. 6. Information on available materials should be documented so it would be easily disseminated and shared when necessary. 7. There is a need for more raw material consolidators so that volume and delivery time requirements of the furniture industry would be met. 8. High transport cost for process materials is a pressing concern of the industry. 9. There is a need to develop product-based value chain in order to identify specific and relevant stakeholders of the chain. 10. There is a need for stakeholders to have a better understanding of the value chain for a better appreciation, involvement and participation. 11. Complementation of value chain development efforts (e.g. DTI, DA, CIDA Pearl2, GTZ etc.) would be very helpful. 5