The Innovators - Planters Development Bank

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SME Feature The Game Changers By Ruth Manimtim-Floresca Known as the home of agricultural research and development in the Philippines, Muñoz, Nueva Ecija is a strategic gateway to farming communities around the region. It is also dubbed Science City since it houses a slew of agriculture and environmental agencies—both local and international alike. Such agencies focus on research and development (R&D) in food, biotechnology, and genetics, among others. The major livelihood for most locals is rice cultivation. They also grow vegetables and fruit-bearing trees, as well as raise backyard and farm animals. Kennrick Magdangal of the Tilah Seed Center, says that it is because of this environment that demand for agricultural supplies, such as feeds, chemicals and fertilizers, has been a very lucrative business. An exclusive circle In the 1980s and 1990s, there were only 18 accredited seed growers in Maligaya, the barangay where Kennrick’s father, Ricardo, was born. Back in those days, in order to be an accredited seed grower, a farmer must first have at least three hectares of farmland, a warehouse, a solar dryer, and a seed cleaner. “In short, an ordinary farmer who doesn’t have the capital that’s at par with the already existing seed growers cannot enter this prestigious circle,” says Kennrick. These seed growers enjoy privileges such as access to newer seed varieties and the latest farming Gloria and Ricardo “Tilah” Magdangal now reap the fruits of their successes. SME | 24
technologies. The result of all this is that their profit per yield is nearly twice that of an ordinary farmer. This is because seed growers produce rice seeds whereas ordinary farmers produce rice grains (palay) which is used for either milling or eating. Rice seeds produce greater yields than rice grains. Farmers could earn more if only they had easier access to rice seeds. However, back then, seed growers typically sold their own seeds at warehouses or garages that were far from national roads. There was no central market, nor was there any easily accessible store for these seeds. These logistical limitations resulted to farmers simply using palay as their seeds, season after season, and thereby crippling their yields and making their incomes negligible. Finding a solution This inequality made Ricardo “Tilah” E. Magdangal, an agricultural engineer by profession, think of becoming a seed grower to realize the potential of the business and, more so, for the entire seed industry. “In 1995, after being accredited as a seed grower, he and my mother, Gloria, put up a store adjacent to our house,” recalls Kennrick. And TILAH Seed Center was born. Prior to establishing the seed center, Tilah worked in various government agencies. He entered the seed production business initially using their six-hectare farmland, located along the national highway, which he and his wife bought in 1983. Gloria resigned from her work as a clinical nursing instructor to help set up the business and become a full-time mom. The trade name, TILAH, came from Ricardo’s nickname Kastila, christened by his grandfather for his mestizo skin color. It was later shortened to Tila and he added the “h” suffix to express how happy he was with where he was. The Magdangals used seeds from their farm as initial inventory. When a rural bank offered a term loan for a building, the couple grabbed the opportunity to build TILAH Seed Center is at the heart of farming communities in Nueva Ecija. a seed store. “My father focused on the seed production while my mother became the store manager as well as the sales personnel, accounting clerk, secretary, etc. at the same time,” says Kennrick. “The lack of a kargador even prompted her to ask her very first client to carry a sack of seeds to his farm tractor.” When the demand started growing, the couple asked their siblings if they wanted to display their seeds in the store, and they were able to sell everything. The next season, other seed growers started stocking their seeds at TILAH too. “Since our store is more accessible, their seeds got sold out in a few days.” The partner seed growers ballooned to a hundred because TILAH became a sure market for their produce. Early challenges It wasn’t all smooth sailing at the start though. Initially, the Magdangals’ small store and makeshift tents and backyard sheds were not enough to store seeds. Despite covering them with tarpaulins and knitted used sacks, piles of seeds still got wet when winds and heavy rains came. And because their solar dryer could not accommodate all the seeds, several batches got infested, germinated, or were spoiled due to the rains, the humidity, and the insufficient sunlight. They were as good as gone. When PhilRice developed a flatbed dryer, which uses dry heat from burning rice hull to dry fresh or newly harvested rice seeds, in 2008, TILAH realized how helpful it would be, especially during the rainy season where solar heat is not available. The Magdangals quickly built three flatbed dryers which, combined, could process some 400 bags of 50 kilos each in an 8 to 12 hour drying period. Energized by this success, the Magdangals then constructed a 3,000 square meter solar dryer which had the capacity to dry 500 bags of seeds every day. This was complemented by three seed cleaners that could remove all unwanted grains, with each machine capable of cleaning 150 bags of seeds a day. TILAH moreover constructed a basic seed laboratory where they conduct preliminary seed testing, which they were taught to do by the National Seed Quality Control Services. Here, seed quality is evaluated in terms of moisture content, germination, and purity. Meanwhile, the NSQCS also certifies the seeds according to international standards. Growing the business as a family The store’s success surprised the Magdangals: farmers from towns from as far as Bulacan, Aurora, Quirino, and Ilocos started coming to TILAH. Their customers ranged from farmers riding tractors and tricycles and commuting on buses or jeepneys, to hacienderos riding in expensive SUVs. “They all came to TILAH because of the seed quality, location, and welcoming atmosphere,” says Kennrick. SME | 25
Page 1: FEATURE Tilah Seed Center reaps suc
Page 4 and 5: SME Staff Box | Contents PUBLISHER
Page 6 and 7: SME Newsline Plantersbank seal Spec
Page 8 and 9: Bizbeat News and trends of interest
Page 10 and 11: SME Focus Management Ride the Techn
Page 12 and 13: SME Focus Marketing Check your bran
Page 14 and 15: SME Focus Operations Don’t forget
Page 16 and 17: SME Focus Strategy Entrepreneurial
Page 18 and 19: SME Focus Sales Back in the (Prover
Page 20 and 21: SME Entrepreneurship Cash or Crown
Page 22 and 23: SME Cover Story The father and daug
Page 24 and 25: SME Cover Story Partnership with IB
Page 28 and 29: SME Feature When rice biyaheros fro
Page 30 and 31: SME Save Mother Earth In other word
Page 32 and 33: SME Worth Reading Technology Matter
Page 34: SME Billboard POS Facility for SMEs

The Innovators - Planters Development Bank

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