Inside CENTER, the biggest farmer cooperative in Guimba, Nueva Ecija, and their vision of true economic reform through rice farming
Established 25 years ago, the Cooperative Enterprise for True Economic Reform (CENTER) has emerged as one of the largest farmer cooperatives in Nueva Ecija, and has since embodied the ideals of true economic reform through its innovative approach to managing an agricultural enterprise.
From its humble beginnings as a farmers’ association in 1998 to becoming among the leaders in rice trading in Nueva Ecija, the cooperative has now set their sights and have begun realizing their dream of a cutting-edge rice processing center in the heart of Guimba, Nueva Ecija. Apart from their main office in Barangay Cabaruan, now situated 8 kilometers east in Casongsong is a new 2.7 hectare-property, boasting a 1,500 square meter warehouse and a nearly completed state-of-the-art rice mill, along with mechanical dryers, and a 2,500 square meter concrete pavement designated for drying fresh palay.
Despite these developments and their rice processing center rising, a humble kubo, a traditional Filipino hut, remains untouched in the property. The kubo, according to CENTER’s members was the first structure to be built on this new property, symbolizing the cooperative’s continuous growth and progress.
Sitting in this kubo, Catalino “Cata” Obinario Jr., Chairperson of CENTER Coop, talks about the role of CENTER in the community of Guimba and the larger rice farming industry in Nueva Ecija.
The makings of a social enterprise – “Negosyong may puso”
CENTER’s journey traces back to its humble beginnings as a farmers’ association, with pioneer members laying the groundwork even before it was formally established. As Cata reflects, “Malinaw, noong 1998, noong inorganisa ito ay para tugunan ang pangangailangan ng mga kasapi. Ang dahilan ng pagko-coop ay dahil gusto naming tugunan ‘yung sarili naming pangangailangan. Ito ay pinapatakbo bilang isang negosyo. Ibig sabihin, kailangang kumita kami para maipagpatuloy namin ‘yung aming serbisyo. So it is both a service-oriented and a business enterprise— a social enterprise. Negosyong may puso,” Cata says.
[It was clear, back in 1998, this was organized to address the needs of the members. The reason
for forming the cooperative is to address our own needs. It means we need to make a profit to sustain our services. So it is both a service-oriented and a business enterprise—a social enterprise. It’s business with a heart.]
The cooperative was officially registered with the Cooperative Development Authority in July 15, 1998, initially focusing on providing member-farmers access to capital for crop production.
The cooperative draws its members primarily from Guimba, although it also welcomes members from the Science City of Muñoz, particularly those from nearby barangays. As time progressed, they recognized the broader needs of members, and expanded their services beyond financial support. They have since created other windows for medical, educational, farm machinery, and livelihood loans, to continuously respond to the needs of their members.
Edward “Ed” Patricio, hails from Barangay Triala. He has been a member of CENTER since 2004, though he shares that his parents were also members of the cooperative. He tends to a piece of land owned by his parents. As its sole caretaker, he ensures productivity of the land year-round.
He shares that the cooperative’s support extends beyond tangible resources; it fosters a sense of community and mutual assistance among its members. “Halimbawa, wala kang pagkukuhanan
sa pagsasaka, pwede kang mangutang. Bibigyan ka naman nila kasi miyembro ka nga. Mayroon kang tatakbuhan kumbaga. Hindi na ‘yung sa ibang tao.
Sa ibang tao ay hindi ka naman binibigyan kaagad e. Sa coop ‘pag lumapit ka, alam naman na may saka
ka, bibigyan ka nila kahit papaano. [For example, if you need capital for farming, you can borrow. They’ll provide since you’re a member. And not just that, you have somewhere to go to. Not just anyone. Others won’t lend you right away. With the cooperative, when you approach them, they know that you have produce, they’ll cater to you.]”
He also shares that the cooperative provides a ready market for farmer’s produce at a fair price. “Malaking tulong. Lalo na kung tag-ulan, mahirap magbenta ng palay sa tag-ulan. Tatawaran ng buyer ‘yung palay mo, mura. Samantalang sa coop, may dryer naman. Pwedeng makakapagpatuyo kami kaagad ng palay para maibenta sa labas o kaya maging bigas kaagad. Sa iba kasi, babaratin lang e. Nadanasan na namin yun e. Sampung piso ang kilo ng palay, tatawaran lang sa’yo, otso. Maraming pang mapagsamantala. Yung ibang buyer, kahit ngayon, kahit sabihin mong 25 ang per kilo na lumalakad, yung iba, mayroong 24, 23. Gano’n yung iba. Sinasamantala nila ‘yung farmers. E dito, bigay mo sa coop. Walang katiga-tigatig,” he says.
[It’s a big help. Especially during rainy season, it’s very difficult to sell fresh palay. The buyer willusually haggle for a low price. But with the coop, there’s a drying facility. We can have the fresh palay dried promptly and have it sold or milled. With others, they will shortchange you. We have experienced it. If the ‘palay’ is 10 pesos per kilo, they will go for 8. There are still those who will take advantage. Even now, even if rice is at 25 pesos per kilo, some will go as low as 24, 23. The others do that. They take advantage of farmers. But here, you can sell it to the coop. Without hesitation.]
Apart from this, Ed is employed as a utility staff at the cooperative’s main office, providing a steady source of income that helps him sustain himself and his family.
CENTER’s primary operation revolves around palay production, processing and trading. They strategically coordinate planting and harvesting schedules to optimize production. During the two-month harvest period for the Dry Season crop, from March to May of each year, they manage a steady influx of harvestedrice from farmer-members like Ed, drying it promptly to maintain quality before storage.
The stored dry palay will then sustain their rice trading operations until the next harvest period for the Wet Season crop, from September to November.
In this recent harvest cycle alone, they have procured 20 million pesos worth of palay since March.
During land preparation, planting, and harvesting, the cooperative relies on seasonal workers who operate the machinery on an as-needed basis. At peak, particularly during harvest, the cooperative provides job opportunities for around 30 seasonal workers.
Parts of CENTER’s new property are still being used as demonstration farm for different rice varieties. Reflecting on rice farming, Cata remarked, “Pagpapalay muna ang pag-usapan natin. Kapitbahay namin ang Science City of Muñoz. So nandiyan ang [Central Luzon State University] CLSU, [Philippine Rice Research Institute] PhilRice, Philippine Center for Postharvest Development and Mechanization] PHilMech, [Philippine-Sino Center for Agricultural Technology] PhilSCAT, at marami pang iba. Walang dahilan para hindi kami gumaling magsaka. Pinakamagaling ang Nueva Ejica sa pagsasaka ng palay. So, that’s one. Nandiyan ang siyensiya. Walang dahilan para hindi namin i-adopt. So, ang resulta, magaganda ang saka namin. Si Vice [Chairperson], umani kahapon. Ang ani niya ay 9.6 tons per hectare. National average is 4.3 tons per hectare. So halos doble. ‘Yan ang pangunahing pinagkukunan namin ng information sa pagpapalay. Pero lahat ng emerging technologies, drone seeding for example, drone fertilizer application, laser-guided land leveling, mayroon na ‘yung mga ‘yan. Private. So hindi na sa government agencies nanggagaling ‘yan. Paborito kaming partner ng mga private inputs providers. ‘Yung mga companies na ‘yan ay madalas nakikipag-ugnayan para makipag-partner sa amin para sa demonstration and promotion of their products. [Let’s talk about rice farming first. We are very near the Science City of Muñoz. So we have CLSU, PhilRice, PHilMech, PhilSCAT, and many others. There’s no reason for us not to excel in farming. Nueva Ecija is the best in rice farming. That’s one. The science is there. There’s no reason for us not to adopt it. So the result is, indeed, we have excellent harvests. Vice Chairperson, for instance, harvested yesterday. His yield was 9.6 tons per hectare while the national average is 4.3 tons per hectare. Around double. That’s our main source of information for rice farming. But all emerging technologies, like drone seeding, drone fertilizer application, laser-guided land leveling, are already there. Privately developed. So they’re not coming from government agencies anymore. We are favored partners of private inputs providers. Those companies often collaborate with us for the demonstration and promotion of their products.]”
In Ilocano language, according to Cata, there’s a saying, “Diak kita, diak pati,” which translates to “If I don’t see it, I won’t believe it.” This is why, according to him, farm demonstrations are crucial. “Malawakan ang demonstration. Bago mag-adopt ang tao, kailangan ay ipakita mo ng maraming beses. Halimbawa, bagong seeds. Ayaw ni farmer. Demo. Tapos habang sumisibol si palay hanggang anihin, invite farmers. Promote. So ‘yan ang kwento ng aming mga lupang sinasaka pa. ‘Yan lang ‘yung paraan. Ma-adopt mo ‘yung technology by showing it to people. Kahit sa makinarya. Siguro 10 years back, ‘yung combine harvester, inaayawan ‘yan. O ngayon, wala nang hindi gumagamit ng combine harvester. So, kailangan lang talagang ipakita. [Demonstrations are extensive. Before people adopt, you need to demonstrate it many times. For example, new seeds. Farmers are hesitant. You need to demonstrate. Then as the rice grows until harvest, invite farmers and promote. That’s the story of our cultivated lands. That’s just the way it is. You adopt technology by showing it to people. Even with machinery. Around maybe 10 years ago, combined harvesters were rejected by farmers. Now, everyone uses combined harvesters. You just really need to show people.]”
CENTER also offers machinery services for equipment such as tractors and harvesters, which members and other farmers can access for a fee. Additionally, the cooperative offers agricultural inputs through a store which serves as hub for various trading activities. The same store is also an accredited merchant of the Department of Agriculture for its Fertilizer Discount Voucher Program under its National Rice Program, allowing eligible farmers to avail of fertilizers using the discount vouchers issued to them under the Program; this same availment mechanism will be implemented by the DA for seeds starting this coming Wet Season 2024.
The cooperative’s development is evident in Ed’s memory, “Ang benta lang namin noon pataba at mga gamot. Tapos konting bigas. Gano’n lang ang tinda ngcoop noon. Hanggang ngayon eto na. Malaki na,” he says. [We only sold fertilizers, pesticides, and some rice. Those are the only things the coop had before. Now it’s grown bigger.]
Ed refers to the cooperative’s ongoing project to move up the value chain from trading, towards
rice processing. In Cata’s words, “We would like to see in our lifetimes a rice processing center. Ang centerpiece niyan ay isang state-of-the-art rice mill. May warehouse, lahat ng logistics kumpleto, ‘yung mekanismo ng purchasing and marketing, malinaw ang office systems and procedures, and located, of course, in the heart of where we operate. [We want to see through the establishment of a cutting-edge rice processing center within our lifetimes, with a state- of-the-art rice mill at the center of it. This facility would encompass a warehouse, comprehensive logistics, mechanisms for purchasing and marketing, streamlined office systems, and most importantly, strategically located at the heart of where we operate.]”
“CENTER is the biggest cooperative here in Guimba. Nueva Ecija is called the ‘Rice Granary’ and Guimba is the rice granary’s rice granary. That’s our pride. Sa agricultural sector, kami ‘yung go-to institution, hindi lang ng mga kapwa magsasaka, hindi lang ng mga organisasyon ng mga magsasaka, pati [Local Government Unit] LGU. [In the agricultural sector, we’re the go-to institution not just for fellow farmers or farmer organizations but also the LGU.]”
Cata shares that the local government reaches out to the cooperative for assistance through the use of its facilities. When they require technical expertise, theysometimes turn to CENTER. All these has made the cooperative become the institution that is admired and relied upon in the rice farming sector in Guimba.
Leveraging partnerships
While initially funded by members’ pooled capital, the cooperative’s expansion necessitates external partnerships. Their operation is supported by a blend of internal and external capital, with a significant portion sourced from a government financial institution. Cata emphasized the importance of seeking partnerships from support institutions and the benefits that thesepartnerships bring, citing that more than half of their assets stems from collaborations not just with government entities, but also civil society organizations such as the Foundation for a Sustainable Society, Inc. (FSSI).
The cooperative is now worth 110 million pesos, owned by 240 members who contributed a total share capital of around 9 million pesos. “Na-leverage namin ‘yung 9 million into something that is worth 110 million. Pero siyempre hindi ko naman itatago na malaking bahagi ng yaman namin ay grants. Tulong ng gobyerno, at mga pribadong ahensya tulad ng FSSI. So ‘yun ‘yung isang galing namin— makipag-network. Hindi lang kami magaling magsaka, magaling din kami makipag- ugnayan,” Cata shares. [We have leveraged that 9 million into something worth 110 million. However, we won’t deny that a large portion of that came from grants. Assistance from the government and private institutions such as FSSI. That is something we are good at – collaborating. We are not only good at farming, we are good at building partnerships.]
FSSI has supported CENTER in the expansion of its agricultural inputs trading through increased volume of goods available for sale in their agricultural store since 2018. “Ang financial assistance na na-avail namin sa FSSI ay nagamit specifically for what it was intended. In fact, medyo malago na nga ‘yung tindahan ngayon,” Cata shares. [The financial assistance received from FSSI was specifically used for its intended purpose. In fact, the store has now flourished.]
Cata also emphasized the potential of Guimba as an agricultural hub and the need for collaboration not only with their cooperative but also with other stakeholders in Guimba, such as the Municipal Agriculture and Fishery Council, where they hold a seat. They emphasized the importance of focusing on mechanization, logistics improvement, and neglected value chains in agricultural development initiatives.
A former development worker in Manila, Cata returned to Guimba nearly 10 years ago to take on the leadership at CENTER. Reflecting on his contributions to thecooperative, he can only express his appreciation for pioneer staff and members who have entrusted to him a good organization, a well-structured, strong enterprise.
At CENTER, a five-member Board is elected from the General Assembly, responsible for overseeing strategic direction and governance. Complementing the board are various committees which play crucial roles in ensuring transparency, accountability, and effective management within the cooperative. At the operational level, a management team oversees the day-to-day operations and coordinates with the core staff of eight individuals. This enables efficient decision-making and resource management, essential for the cooperative’s sustained growth and impact.
“Maaaring may kulang, pero malinaw ‘yung pwedeng gawin. ‘Yun ‘yung sigurong pwede kong iyabang
na rin na tulong ko. Saluhin ‘yung mga tukoy nang pangangailangan, gawan ng paraan para ma-aksyunan ng lahat ng ‘yun, at bigyan kaming lahat ng malinaw na direksyon – rice processing center,” he says.
[There may be some gaps, but the potential for improvement is clear. That’s perhaps what I can proudly say I have contributed. Being accountable for addressing identified needs, finding solutions for all those, and giving us all a clear direction – a rice processing center.]
