Blessings in Disguise: A Coop's Story

CEBU, Philippines - “In the Philippines, no political candidate is ever defeated, just cheated.” So was an astute observer’s take on the May 2010 political candidates’ post-election blues.

The observation focuses on candidates who came, saw but did not conquer the numbers at the polls. They wooed, got spurned, and now, amid signs of fatigue and unease, have complained of e-fraud.

Not every defeated candidate ends up grouchy and cynical, though. Some lucky few take the road not taken, snap out of the blues fast, and move on. They’re the breed about whom Viktor Frankl, renowned Austrian psychiatrist and Holocaust survivor, spoke — people proving that choosing one’s attitudes is the last of the human freedoms. 

In 2004, 15 friends ran for elective positions in the municipality of Liloan. Not one made it. Did that end their desire to serve their community? With a resounding “No,” they decided to put up a cooperative and so, to the Aboitiz Foundation, Inc. they went for assistance.

With an initial P 250,000 soft loan (without collateral) from the Foundation, the enterprising ex-candidates organized themselves into the St. Vincent Neighborhood Multi-Purpose Cooperative, in Sitio Curva, Barrio San Vicente, Liloan. Their initial project: swine fattening. 

Like similar beneficiary-coops before them, the members provided at least five piglets. Aside from the loan, Aboitiz Foundation bridged the cooperative with Pilmico, another Aboitiz company. As the coop members’ “Partner for Growth,” Pilmico gave free vitamins and feeds for the piglets, be these “sucklings” (1-24 days old) or “weanlings” (25-70 days old).

Only pigs from strong bloodlines get into the pens — Large White, Landrace, Pietrain and Duroc. Moreover, Pilmico provides veterinary assistance; its vets conduct regular visits to the members for face-to-face consultations and hands-on guidance in their swine fattening concerns.

The coop’s founding members savor the taste of blessings in disguise. Membership has multiplied, from 15 five years ago to today’s 79 active members. Other economic ventures have increased the coop’s revenues — meat shop, rice retailing, lending — and have given additional benefits to its members. Project officer Rowena Astillo of Aboitiz Foundation says, “I can see people improving their quality of life, and I get to meet people who are really willing to cooperate and commit to the goal.”

Every pig has a live weight of 85 to 90 kilos. Of these, however, only 60 to 75 kilos are saleable and, thanks to the meat processing equipment donated by the Aboitiz Foundation, are immediately apportioned as “liempo” cuts for two popular clients, Andok’s and Mr. Liempo. outlets. If the coop grew bigger, it could be among the big providers for Andok’s 20 outlets and Mr. Liempo’s 11 outlets here in the city.

The rest of the meat parts are processed into lumpia, pork chop, meatballs, chorizo, tocino and tenderloin cuts, all spoken for by regular buyers, too. 

Coop members also get their NFA rice at discounted prices. From the purchase price of P 18.75 per kilo directly from the NFA, the coop’s store “Tindahan Natin” sells it at P 20 per kilo to members, and P 25 to non-members.

For personal or emergency reasons, members can take out loans; maximum is P 2,000 per member for the initial loan, after which the next loan is for P 4,000. Payable in three months, each loan is charged 3 percent interest monthly. The loans are taken from individual membership fees which involve P200 per member, and P2,000 fixed deposit.

From all indicators, the coop is a winner. Aboitiz Foundation, Inc. agrees, judging by the increasing amount of loans it releases every year for the coop. That initial loan of P 250,000 was doubled the next year, then became P 833,000 in the third year, P 1.147 Million in the fourth year, and last March 8, P 1.245 Million.

Clearly, major factors in the coop’s success are its leaders’ business acumen and can-do spirit. Ably led by Rogelio Santianez (board chairman), Ernesto Sabana (vice-chairman), Mario Llever (coop manager), Cris Patac ( secretary-treasurer), Eufronio Capangpangan (internal auditor), the coop has enjoyed rebates from the Foundation; 50 percent of the interest paid is given back to the coop once it pays the total amount in full on or before the loan’s maturity date. 

For the five loans it obtained, the coop’s rebates totaled P 256,000. From this, the coop bought a 100 square-meter lot to house its meat shop and office, and a multi-cab unit costing   P 50,000 for delivering its meat products to customers. Says Foundation Managing Trustee Augusto “Sonny” Carpio, “Nothing can be more gratifying than seeing seed funding spur a self-sustaining business that provides employment to members of their communities.”

Inspired by the impressive success of the St. Vincent Neighborhood Multi-Purpose Cooperative, Aboitiz Foundation approved P 9.5 Million last year to fund the projects. This year, the approved budget is P 14.4 Million for the projects of 12 cooperatives with a total of 477 availing members.

Already, the Foundation is considering expansion to other communities in Metro Cebu, and selected areas in Davao and Benguet. In keeping with their corporate social responsibility, to develop the communities in which they operate, Foundation President Jon Ramon Aboitiz and Board Chairman Erramon Aboitiz commit the Foundation to be “unrelenting in fulfilling its mission to help people help themselves.”

Will another electoral exercise lure the coop members again? “No,” came the chuckle. Indeed, there’s more to life than politics. Genuine community service, for instance.