Presented to Presented to

Forest Management BureauForest Management BureauDENR, Quezon City,DENR, Quezon City,

February 8, 2011 February 8, 2011

Current Forest Situation Objectives Project Area Coverage Project Description Organization and Management Financial Plan

About 7,665,000 ha or 25.7% of Philippines is forested, according to FAO.

Of this 4.6% ( 352,000 ha ) is classified as primary forest, the most bio-diverse and carbon-dense form of forest.

Philippines had 352,000 ha of planted forest. Change in Forest Cover: Between 1990 and 2010,

Philippines lost an average of 54,750 ha or 0.83% per year.

Between 2000 and 2005, the rate of forest change decreased by 20.2% to 1.98% per annum. Philippines.

In total, between 1990 and 2005, Philippines lost 32.3% of its forest cover, or around 3,412,000 hectares.

And between 1990 and 2010, gained 16.7% of its forest cover, or around 1,095,000 ha.

Philippines's forests contain 663 million metric tons of carbon in living forest biomass.

Biodiversity and Protected Areas: Philippines has some 1196 known species of amphibians, birds, mammals and reptiles according to figures from the World Conservation Monitoring Centre.

Of these, 45.8% are endemic, meaning they exist in no other country, and 14.7% are threatened. Philippines is home to at least 8,931 species of vascular plants, of which 39.2% are endemic. 5.1% of Philippines is protected under IUCN categories I-V.

Approximately 75.83% of Arabica & Robusta Coffee and 100% of macadamia is being imported

Economic Dependency of Energy Source Growing effect of Greenhouse Gases on the

environment Fuel prices steadily increasing causing public

concern- cost of inputs, transport, labor

The need to pursue a Nation Wide Road Map to assure the continuous growth of the alternative reforestation high value agro-forest tree crops industry.

Determine the economic feasibility of the macadamia and arabica coffee as reforestation tree crops

Growing demand for planting materials Awareness and interest in macadamia and

arabica coffee growing High demand, limited supply of macadamia

nuts world wide – 2%, coffee steadily increasing demand

Need to create the agro-forest infrastructure to create a sustainable source of macadamia and coffee, alleviate poverty and resilience to climate change

1. Training on Planting , Production and Processing Technology

2. Nursery (Propagation)• Seeds Selection• Clonal Rooted Cuttings• Tissue Culture

3. Tree Crops Plantations in CBFM, CADT/CADC, Watershed Areas

4. Buying and Processing Centers

Macnut Philippines recently spearheaded the propagation and production of macadamia and arabica coffee

New investment ventures looking at creating operations to produce macadamia and arabica coffee in the Philippines.

Macnut Philippines providing propagation material to plant initially 20,000 hectares or the equivalent production of 3,000 tons of macadamia nuts and 40,000 tons of arabica coffee

To plant macadamia and arabica coffee as reforestation and income generating tree crops

To alleviate poverty, empower and improve the lives of the CBFM, CADT/ CADC holder beneficiaries

To improve upland productivity through introduction of sustainable, climate change resilient farming and environmental protection technologies – natural farming

Table 1. Land utilization in the Philippines

Land UseArea (ha) Percentage

Agriculture 9 728 800 32.95

Forestry 19 062 600 64.56

Settlement 131 400 0.44

Mining and quarrying 8 700 0.029

Inland Fisheries 595 700 2.02

Open Land 1 100 0.004

Total 29 528 300 100.00

Administrative boundaries

Table 2. Area, production and value of production of five important crops, in 2008

Crop Area (‘000 ha)

Production(‘000 tons)

Value of production (M pesos)

Rice          4 006.4          13 499.9         117 989.0

Maize          2 409.8            4 615.6           32 540.1

Coconut          3 214.2           14 121.9           38 694.0

Sugarcane             389.4           23 981.3           21 823.0

Banana             409.8             5 369.0           30 066.2

Region I – 1,500 CAR -

1,000 Region III -

1,000 Region IV -

1,000 Region V- 1,000 Region VI -

1,000 Region VIII -

1,000 Region IX -

2,500 Region X- 4,000 Region XI -

2,000 Region XII -

1,000 Region XIII -

3,000 Total (Has) - 20,000

Hedge rows shall be established using leguminous crops (Flamengia, Ronsonii, Leucaena, Gliciridia, Calliandra,Caloahyrus, Indigofera etc.)

The identified beneficiaries shall implement the setting up of 1 hectare strip cropping system per farmer using the recommended technologies.

The Project shall be implemented in cooperation with DENR through its field offices

PROJECT IMPLEMENTATIONN

ucl

eus

Ph

ase

2P

hase

1

10 Ha. NUCLEUS

0 to 6 months Development

Period

5,000 Hectares

20,000 Hectares12 to 24 months

Development Period

6 to 12 months Development

Period

10 x

3 x

5 x

monocrop intercrop

monocrop intercrop

10 ha

5,000 ha

20,000 ha

NurseryNursery PlantationPlantation ProcessingProcessing RefiningRefining

• seeds

• irrigation

• laborlabor & overhead

• fertilizerfertilizer

• land lease

• training

• CBFM seedlings

• irrigationirrigation

• labor & overhead

• fertilizerfertilizer

• land preparation

• transport

• weeding/pruning

• training

• harvesting

• PO expelling

• building

• laborlabor & overhead

• plant maintenance

• transport

• storage

• MacnutMacnut

• buildingbuilding

• overheadoverhead

• plant plant maintenancemaintenance

• transporttransport

•storagestorage

Meeting Growing Global Demand for Macadamia and Arabica coffee”

1. Macnut objective is to become a global, sustainable producer of competitively priced2. We aim to meet the world's growing demand for more green organic food 3. To deliver a consistent high volume output of sustainable high quality macadamia and arabica coffee products4.We are building a global portfolio of planting and refining operations and we believe production in volume for the long term is the most profitable way to maintain our lead. d5. Macnut is commercially driven with a business model that adresses the pressing national and global issues of food security, climate change, poverty alleviation and sustainable development.”6.With an Immediate Goal of planting 3,000 hectares for 2011 for the Philippines

 1st year per hectare

Product  Gross income Production cost

Net Income Total

Arabica coffee ( 2,500 pcs @ 25/pc) 0 45,000 0

Macademia (300 pcs @ 150/pc) 0 50,000 0

Total 0 95,000 0

Financial Plan

Products Gross income Production cost

Net Income Total

Crops & Mixed Vegetables (Rice, Pole Sitao, Egg Plant, Okra, Citronella/Lemon Grass, Tomato, Hot chili pepper)

40,500 16,767 23,733

Arabica  (1 ha.) 0 39,960 0Macadamia (1 ha) 0 80,000 0Total 40,500 153,494 23,733

Diversified Farm Crop mix .3has cost

and return analysis for one year (first year)

  2nd -3rd year (1/3 has)

 Products Gross income

Production cost

Net Income Total

Crops (Citronella/lemon Grass,, Hot chili pepper, & mixed Vegetables)

205,000 61,420 143,580

Arabica (1 ha)  100,000 25,000 75,000

Macadamia (1 ha) 0 30,000 0Total 305,000 116,420 218,580

Diversified Farm Crop mix .3has cost

and return analysis for one year - 2nd & 3rd year

7th year (1/3 has)

 Products Gross income Production cost

Net Income Total

Crops & Vegetable (Citronella/Lemon Grass, Hot chili, Peanut)

50,500 37,020 63,480

Arabica coffee (1 ha)  160,000 45,000 115,000

Macadamia (1 ha) 108,800 60,000 48,800Total 369,300 142,020 227,280

Diversified Farm Crop mix .3has cost

and return analysis for one year - 7th year

  Total From First  up to 7th Year

Crops & Vegetable (Citronella/Lemon Grass, Hot chili, Peanut), Arabica coffee, Macadamia ) 

Gross income Production cost

Net Income Total

First year 40,500 153,494 23,7332nd year 305,000 116,420 218,580

7th year 369,300 142,020 227,280Total 714,800 411,934 469,593

Diversified Farm Crop mix .3has total

cost and return analysis from 1st year up to 7th year

 2nd -6th year

 Product Gross income Production cost

Net Income Total

Arabica coffee ( 2,500 pcs @ 25/pc) 0 30,000 0

Macademia (300 pcs @ 150/pc) 0 30,000 0

Total 0 60,000 0

Financial Plan

 

7th year

Products  Gross income

Production cost

Net Income Total

Arabica coffee ( 2,500 pcs @ 25/pc) 160,000 45,000 115,000

Macademia (300 pcs @ 150/pc) 1,800,000 50,000 1,750,000

Total 1,960,000 95,000 1,865,000• Macadamia 30 kilos/tree X 300 trees/ha X 200/kilo

•Arabica 80/kilo X 2,000 kilos (2 tones)

Financial Plan