The pioneering venture is being done by TGA Farms Inc., an agribusiness firm based in Pampanga.
TGA president Rene Tayag said his company bagged an export contract for the initial delivery of 50,000 tons of tilapia fillet to the United States and Canada, with the first shipment scheduled in August 2003.
The company is being backed by the Department of Agriculture (DA) and the Quedan and Rural Credit Guarantee Corp. (Quedancor) which will lend at least P10 million to the contract growers of TGA Farms.
TGA Farms contract growers numbering about 30 will receive next week a production loan packages amounting to P170,000 per hectare for a maximum of two hectares per farmer-beneficiary to cover the cost of fingerlings and feeds and other expenses.
"We are initially lending out P10 million for this tilapia fillet export production initiative, but we are willing to lend more to qualified borrowers as soon as funds are available," said Agriculture Secretary Luis Lorenzo Jr.
The lending arrangement will be formalized during the contract growing agreement to be signed on May 5 by the farmers and the Quedancor.
TGA Farms said the company has asked its contract growers to meet the desired tilapia size of 800 grams per piece which is the specification of its buyers from the US and Canada.
Most tilapia growers in Central Luzon and even elsewhere in the Philippines produce the fish only up to 450 grams per piece, and once they reach this weight, farmers immediately sell it for cash, Lorenzo explained.
While there are a number of potential farmers who intend to supply TGA with its tilapia requirements, they lack capital and incentive to venture into the growing of 800-gram tilapia, the DA chief said.
"So, that’s where we at DA came in. We have to intervene fast enough to help farmers with their capital and help the firm meet its export commitment," Lorenzo added.