Secretary Alabastro visits Biliran SETUP projects

The second leg of the Eastern Visayas project visits of DOST Secretary Estrella F. Alabastro took off in the island province of Biliran on March 26, 2010

With quite a number of DOST officials and media people joining the tour, Dr. Alabastro made her first stop at the Biliran Essential Oil Manufacturing Philippines in Brgy. Bato, Biliran, Biliran.

BEOMP is known to be the largest producer of citronella oil in Region VIII or maybe the entire Visayas if not the whole country. Citronella oil is extracted at a rate of up to 1% from the matured leaves of citronella grass through steam distillation process using distilling still that can accommodate 600-1000 kg of grass per batch of 8 hours. The company owns two units of distillers, one of which is acquired through DOST's Small Enterprise Technology Upgrading Program (SETUP).

From BEOMP, the entourage proceeded to AR La Naval Motor Parts and General Marketing's metal fabrication facility in Naval, Biliran. This newly established project is into the production of minor parts for small engines including bushings, bolts, nuts, small gears, cylinder head re-bores and sleeving, and similar machining services. SETUP provided funds for the company's acquisition of major equipment.

Out of the visits, the Secretary observed firsthand how DOST's interventions through technology transfer and consultancy services was able to create employment, improved product quality, and increase production volume for the company. All these were made possible through the coordinated efforts of the ITDI, MIRDC, PCARRD, TAPI, the LGU, and DOST VIII.

Citronella oil extraction project in Biliran

One of the success stories in the implementation of Small Enterprise Technology Upgrading Program (SETUP) in Region VIII is the citronella extraction project in Barangay Bato, Biliran, Biliran. The citronella oil extraction plant is operated by the Biliran Essential Oil Manufacturing Philippines (BEOMP) with office at Ormoc City owned by Mr. Jesus F. Doyon, Sr.

The firm started operation in 2004. The adoptor initially uses the crude design of the citronella oil extraction equipment developed by Engr. Jesus Villamil, who became Mr. Doyon’s consultant. Realizing the potential of the citronella oil industry, the company continuously seek the assistance of DOST and other agencies for improvement of the process and expansion of the essential oil venture. Latest addition to the innovativeness of the owner is the adoption of new citronella oil extractor design which can use both LPG and firewood as fuel, and under vacuum condition through the support of DOST. This was conceived because of the desire of the proprietor to improve citronella oil quality for the future needs of buyers who would demand better quality oil. Although ambitious, the proponent was looking in advance for expansion of its local market share and possible foreign market. The Internet is its current market scout through Mr. Doyon’s marketing manager, Mrs. Irma Paras, with the support of DOST-Biliran PSTC.

DOST through several agencies such as the Industrial Technology Development Institute, the Technology Application and Promotion Institute, the DOST Regional Office No. VIII and the Biliran Provincial Science and Technology Center have provided continuous support to the company since its operation in 2004. Among the assistance provided was on the quality assessment of citronella oil. Result of ITDI chemical analysis show that the citronella oil produced by the company contain about 21-25% geraniol (the essential alcohol component of citronella oil). Because of this ITDI recommended possible improvement of the process to increase geraniol levels such as use of vacuum distiller. This innovation was integrated in the design of the new citronella oil extraction machine which was acquired through funding support by DOST's SET-UP in the amount of PhP365,000.00 in 2006.

Another recommendation in the Valdecañas & Torres report, which was integrated in the new design, was the use of alternative fuel (LPG) and the fiberglass insulation of the main extractor vessel. Continued technical consultancy was provided in the manufacturing practices of the company such as elimination of the use of waste tire as fuel or fire starter in the burner, the possible removal of dead leaves and other minor recommendations, which the adoptor used.

The firms production and sales from citronella oil almost doubled compared to its past levels. Increase of production ranges from 80-100% from its original level in 2004. Gross sales in 2007 approximately reached PhP780,000 which is about 84% increase from 2004 recorded sales (Based on DOST Pre-Implementation Sheet data).The citronella oil becomes clearer and finer with geraniol considerably increased to 52% based on latest analysis of ITDI.

The intervention of the DOST was matched up by the proponent’s increased investment with the acquisition of additional equipment, facility improvement, and farm implements reaching about PhP 3.5 M. In an industry level, since BEOM is the only producer in the Region, the investment is a major contribution. The expansion of the plantation from the existing 15-hectare active plantation to another 20 hectares was a big leap to reactivating the 50 hectares used by the earlier companies.

The waste grass was not a problem for the company since it is biodegradable and can be used as organic fertilizer for the plantation and landfill for the remaining uncultivated areas. The waste water was used as spray for the plants to repel insects and pests.

What then could be a good sign of success as far as SETUP is concerned? Well, among the milestones achieved is BEOMP's completion of its refund of the SETUP assistance in 2009. Having employed at least 30 workers and involved farmers in citronella grass cultivation is a legacy that would be a starting point for a growing industry in this Island Paradise of Biliran. A proof that a lazy man's crop like citronella grass could be a good source of livelihood and income to the local folks.

SY 2010-2011 DOST Scholarships qualifiers

A total of 1,023 fourth year high school students passed this year's Department of Science and Technology-Science Education Institute (DOST-SEI) undergraduate scholarship examination, which include 23 students who were given special scholarships for bringing honors to the Philippines when they garnered medals in prestigious international science and mathematics competitions recognized by SEI. Reports from SEI (Complete Article)

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Establishment of Bangus Processing Facility

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The dryer and smoke house

(SPIN: 06-594-08-05)

PROJECT BENEFICIARY:

Biliran Agri-Center

Mr. Gerardo S. Espina, Sr.

Naval, Biliran

Biliran (Lone District)

DATE APPROVED: March 2006

SETUP FUNDING: P 820,000.00

NATURE OF PROJECT: The project involves the acquisition of equipment, such as smoke house and dryer, for production of deboned smoked bangus (milk fish). The project was assisted by ITDI by providing design and specifications of the drier.

STATUS OF PROJECT: Terminated. The proponent backed out from the project before the major equipment was delivered since their Bangus production was totally damaged by typhoons. The equipment was currently placed under care of Cabucgayan LGU in 2009 demonstration project. The demonstration period was terminated early in 2010 and the equipment is ready for transfer to interested user.

Upgrading of Meat Processing Facility

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some equipment acquired with SETUP support

(06-523-08-01)

PROJECT BENEFICIARY:

Carding Meat Store

Mr. Ricardo S. Victoria, Proprietor

Naval, Biliran

Biliran (Lone District)

DATE APPROVED: October 2006

SETUP FUNDING: P 352,000.00

NATURE OF PROJECT: The project involves the acquisition of equipment for the production of comminuted meat products such as longanisa of different variants. The SME also received consultancy assistance through the MPEX program for production area lay-outing and process flow improvement.

STATUS OF PROJECT: Terminated

Technology Support for Establishment of Coco-based Food products Processing Facility

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The equipment acquired using SETUP assistance

(10-1250-08-01-1)

PROJECT BENEFICIARY:

ELSHIRGLOW Processed Food Products

Ms. Josefina O. Buban, Manager

Bariis, Caibiran, Biliran

Biliran (Lone District)

DATE APPROVED: October 2010

SETUP FUNDING: P 81,000.00

NATURE OF PROJECT: The project involves the acquisition of equipment and utensils for production of nata-de-coco strips. DOST assistance also include provision of label design and acquisition of packaging equipment, training, and consultancy services for process improvement.

STATUS OF PROJECT: On-going