Success Story: Kenram Agrarian Reform Beneficiaries Multi-Purpose Cooperative

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Name of Cooperative : Kenram Agrarian Reform Beneficiaries Multi-Purpose Cooperative
Address : PurokPagkakaisa, Kenram, Isulan, Sultan Kudarat

Background:

The Comprehensive Agrarian Reform Law (CARL) was mandated to cover all agricultural lands. It was also stated that a deferment to commercial farms shall be considered in order to regain the capital investment of the business firm. Kenram (Phils.) Inc. applied for deferment, however, on May, 1989, the Department of Agrarian Reform (DAR), Isulan, Sultan Kudarat, did not favorably recommend for deferment since oil palm does not fall under the scope and coverage of Administrative Order No. 16, Series of 1988 and Sec. 11 of RA 6657.

On January 11, 1990, an auditing firm of the KPI sent a letter of reconsideration to the steering committee and on February 5, 1990, DAR-Isulan received a letter from the steering committee on commercial farm deferment stating that “the application for reconsideration has merit regarding AO No. 16 of 1988 and subject for approval.

On March 29, 1990, the KPI applied for stock distribution scheme but the workers of the plantation turned-down the stock distribution scheme through a referendum. On June 3, 1997, the MARO,PBD-CFD point person and Rural Development Initiative-Sultan Kudarat agreed to form the ARB organization and strengthen the potential ARB plantation. Onthat same month, RDI-SK and DAR agreed to conduct a consultation with officers and members of Kenram Employees Labor Union (KELU) for possible tripartism in the social preparation

The social preparation planned activities were presented and approved during the KELU General Assembly on July 27, 1997. A task force was formed which was directly responsible for the organizing, strengthening and filing of petition for immediate CARP coverage of KPI after expiration of the deferment on June 15, 1998.

On October 30, 1997, it was recommended to form a cooperative that shall serve as a claimant organization in land holding. It was on February 21, 1998 that a core group of 15 members was organized to form a cooperative. PMES were conducted on February 28 to  March 22, 1998 accomplishing four series of seminars.

During the months of October  and November, 1998, option for discussions in Kenram through the cluster meetings were conducted. Options presented were Joint Venture, Contract Growing, Lease-Back and Take-Over.  The option that the cooperative will take-over was approved through a referendum which was participated by 250 workers. A discussion was also presented on the management design. Activities were also undertaken which focussed on the finalization of the masterlist of the beneficiaries.

The cooperative was registered with the Cooperative Development Authority (CDA) on January 20, 1999 with Certificate of Registration Number RN-3435-KEO and with initial paid-up capital of P159,500.00.

After identifying the differenttraining needs, series of seminars were conducted with the assistance of the Land Bank of the Philippines-Isulan Branch.Development Plan was formulated with the joint efforts of government agencies (DAR, CDA), academe (SKPSU, USM), barangay council and RDI-SK. Series of dialogues were conducted which resulted to the generation of the final land value and registration of the title at ROD on December 21, 2001. CLOA generation activities followed on the next year.  On April, 2002, the cooperative took over the plantation.

After series of meeting, the Cooperative and KenramIndustrial Devedlopemnt, Inc. (KIDI) finalized the production and purchase agreement. The signing of the document symbolizes the cooperation and the complementation of both parties in the development of the industry.

Kenram Agrarian Reform Beneficiaries Multi-Purpose Cooperative (KARBEMPCO) has a total members of 413 who are all ARBs, and a workforce of 163. Beneficiaries of the cooperative was awarded with three(3) hectares of land for regular worker and one(1) hectare of land for non-worker ARBs. Free  housing lots were also given to both ARB and Non-ARB Workers.

The cooperative was registered on October 15, 2009 as provided for by RA No. 9520 with Certificate of Registration No. 9520-12000629.  As of 2011, it has  427 ARB Members and Paid-up Capital of P34.3 Million, a Net Surplus of  P6.09 Million and Total Assets of P174.7 Million.

Among the awards received  were:

  1. Progressive ARB Organization awarded by the Department of Agrarian Reform (DAR);
  2. Certificate of Recognition as No. 8 Top Millionaire Cooperative in Region XII awarded by CDA-KEO on July 6, 2011;
  3. CDA GawadParangal 2012 Regional Nominee – Large Cooperative Category.

Best  Practices:

The Board of Directors, Committee, Management Staff and together with the entire membership of the cooperative are working to have a strong and good leadership, leaders with dedication and expertise in every field of operation, promoting institutionalized values and ethics that established strong policies and procedures for a well-planned programs and viable projects to be undertaken for the welfare of its members. Social responsibility activities were also regularly undertaken and in-place. Frequent management and financial audit are being conducted, both by internal and external auditors. Linkages and Networking with government agencies such as CDA, DAR and others, non-government organizations such as RDI-SK and PhilNet, and professional image building both for officers and employees of the cooperative. Amended its Articles of Cooperation and By-Laws to conform with the provisions of RA No. 9520 and secured Certificate of Tax Exemption from the BIR and complied with other Administrative Requirements of concerned government agencies.Regular review and assessment of policies, attendance to required trainings mandated by laws, Continuous savings and capital build-up program and availability of succession plan.

Business Undertakings that made coop operation successful in terms of growth, Services Delivery, Social Impact and Financial Performance:

With adherence to sound and effective operating policies, continues businesses of the cooperative made successful with implementation of the development plans formulated  by the officers and properly implemented by the management staff. The following are the business activity of the cooperative which responds to members’ needs, to wit:

  1. Production of Oil Palm Fresh Fruit Bunch (FFB)
  2. Savings & Lending Services
  3. Consumers Operation Services
  4. Marketing Services (Fresh Fruit Bunch of African Oil Palm))
  5. Oil Palm Nursery
  6. Kenram Water Sanitation (KEWASA) Facilities
  7. Trucking Services

Coop Plans, On-Going Programs and Projects, Sources of Financial Assistance, Savings and Capital Build-Up Generation:

1. On-Going Programs and Services:

a. Production of African Oil Palm Fresh Fruit Bunch (FFB)
b. Savings & Lending Services:
    - Salary Loan - 2 % /mo.
    - Pension Loan - 2%/mo.
    - ATM Buy-Outing
    - Emergency Medical Assistance Loan
    - Housing Loan
    - Savings/Time deposits

c. Consumers Operation Services
d. Marketing Services (Fresh Fruit Bunch of African Oil Palm))
e. Oil Palm Nursery (Germinated Seeds)
f. Kenram Water Sanitation (KEWASA) Facilities
g. Trucking Services
h. Community Services:

           - h.1.   One Coop - Paid Elementary School Teacher
           - h.2.   3 Catechist
           - h.3.   Nutrition Scholar
           - h.4.   Assistance Barangay Fiesta, School, Church
           - h.5.   Workplace Family Planning/Maternal Child Health Program
           - h.5.   Tree planting along the river banks
           - h.6.    Annual  Subsidy of medicines to Barangay Health Center
           - h.7.    SPES Program during summer and student on the job trainings (OJT) with an allowance of P50.00/day.

  2. Source of Financial Assistance:
      a. Regular Contribution of members through their Continuous Capital Build-Up Program
      b. Grants from Government Agencies
      c. Loans from Land Bank of the Philippines (LBP)

 3. Profile:

Name of Cooperative Kenram Agrarian Reform Beneficiaries Multi-Purpose Cooperative
Address PurokPagkakaisa, Kenram, sulan, Sultan Kudarat
CDA Reg’n No. 9520-12000629 dated October, 15, 2009
CIN 103120144
Original Reg’n. No. RN-3435-KEO  dated January 20, 1999
Category Large cooperative
Contact Persons Edward B. Gocotano | Gen. Manager | 09056729184
  Vivencio T. Tamesis | BOD-Chairman | 09172510968
Total  Members 427 | Male:  311 | Female: 116
Regular employees 144
Non-ARB employees 19
As of  December, 2011: 
Total Assets P174,775,254.62
Paid-Up Capital P34,313,688.17
Net Surplus P6,091,001.91
Savings Deposits P 1,677,047.21

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