Limcoma Multipurpose Cooperative: A certified billionaire

LIPA CITY, Batangas – From a small operation generating annual sales of no more than P100,000, this multipurpose cooperative has grown to become the most successful grassroots business organizations in the country with annual sales reaching a whopping P1.3 billion in just three decades.

Limcoma Multipurpose Cooperative has been certified by the Cooperative Development Authority (CDA) as a "billionaire" with assets amounting to almost P.5 billion.

Originally known as Lipa City Multi-Purpose Cooperative Marketing Association, Inc. Limcoma was formally organized on March 25, 1970 when a group of 77 backyard poultry and pig-raisers coming from different towns in Batangas organized themselves into a cooperative with an initial paid-up capital of P57,000.

The cooperative, which held its 32nd annual general assembly last March 23, heaped praises from no less than President Arroyo who lauded Limcoma president Nicanor Briones for his leadership.

Limcoma’s achievement was also acknowledged by CDA Region 4 Director Francisco Barquilla who certified that Limcoma is the number one agricultural cooperative in the country today.

The road to success wasn’t easy. Limcoma had to go through many years of hardship before getting to where it is now.

It all started with a "pala-pala" system wherein feed production was done manually with the use of spades in mixing food grains in a small rented rice mill. The operation was handled only by four people back then. The shared responsibility in production, sales and other office requirements inside the first ever feedmill built in Lipa, the Silva Rice Mill which is now the Mayflower Building of Limcoma.

Showing unflinching loyalty to their own product, the original 77 agri-farm operators/members earnestly patronized its locally produced feeds for their backyard poultry and pig raising requirements, helping the cooperative raise its sales performance year after year.

With only P3,000 as joining fee, members are entitled to discounts, technical services, credit facilities and patronage refunds depending on the volume and cost of product purchased.

Majority of its members buy their feed supplies in cash, giving Limcoma a high degree of liquidity.

Members continued to increase until such time that the management felt the need to increase its working capital. A loan of P1 million from Development Bank of the Philippines and Cooperative Development Loan Fund paved the way to Limcoma’s tremendous growth and development.

In 1978, Limcoma expanded its operation by setting up two branches, one in Rosario and another in San Jose after buying the Silva Rice Mill in Lipa. In the same year, a quality control Laboratory was built to ensure the best quality raw materials used in its production.

Limcoma maintained its high standard quality products that enticed more members to join. Now Limcoma has 4,200 active regular and associate members enjoying the full benefits of a billionaire cooperative service.

First in Southeast Asia

Don Claro R. Malleta, Limcoma’s founder who served as president for 15 years, had envisioned a five-year Development program before he passed away in 1987. This included the modernization of the feedmills, operation of a breeding farm, a cooperative bank and the marketing of the member’s produce.

In1994, a computerized feedmill worth P65 million was built, making Limcoma the first and only automated and computerized feedmill in Southeast Asia. This was established to improve and upgrade the level of production to meet its members’ rising demand.

The computerized machine can produce up to 11,000 bags of feed per day.

Limcoma also invested more than P22 million for the acquisition of a 97-foot twin silo plant that can store up to 3,600 tons of yellow corn at a longer period of time, yet maintaining its quality and moisture content.

In 1998, Limcoma bought a six-hectare land in Barrio Talisay in Lipa City for its swine breeding and experimental farming activity. That same year, Limcoma planned to put up modified branches in all potential areas for market accessibility.

Services

Limcoma had maintained its rapport with its numerous members because of the benefits and services offered. In 1994, Limcoma launched its meat processing line, which aims to train and help members produce and market their own products.

Going by the brand name "Batangas Best", Limcoma’s meat processing line includes products like tocino, tapa, longganisa, bacon, ham, embotido, sisig, hotdogs and many others. "Batangas Best" was recently changed to "Limcoma’s Best" as a marketing strategy that will cope-up with its competitors.

Because of its increasing number of members, Limcoma established its own rural bank. Limcoma Rural Bank was inaugurated last May 1999 with the primary objective of extending financial assistance to members engaged in agricultural activities. Limcoma Rural Bank also opened its services to non-members who wants to avail of several types of loan at a much lower interest rates.

Another undertaking of Limcoma was the opening of Mayflower Agri-Ventures, which is engaged in manufacturing, and selling of veterinary products. Members were privileged to buy medicines for their livestocks at very low prices. At the same time the services of a veterenarian are provided to monitor drug application.

To help the cooperative’s members in marketing their produce, Limcoma opened a food store chain, which carries Limcoma products such as meat, eggs, distilled water and other grocery items.

Limcoma members who own livestock are serviced free of charge by competent veterinary doctors and are offered use of its animal diagnostic laboratory to ensure and provide quality hogs and chicken. The artificial insemination center practices breed-matching program to target the most productive combination.

Directed to support its members, Limcoma also offers an "investor-friendly" scheme to its members who wish to start a livestock raising business but lack the capital and resources to do so. Limcoma launced its "paiwi system", feeds subsidy and "paluag system" which supplies piglets, chicks, feeds, veterinary products with an easy pay-back plan.

Mission

What is the secret of Limcoma’s success?

"Limcoma has no secret recipe that it can share nor magic spell that it casts. Limcoma simply sticks to its mission.... To give its full support and complete services to its members. The greatest strength of Limcoma lies in its weakest member...for whatever service it can give to them, only to ensure its continued growth and development" Briones said.