DBP continues to lend support to SMEs in Philippines

MANILA — The Pampanga-based Mekeni Food Corporation, producer of Pinoy favorites “tocino” and hotdogs, and the Red Dragon Farm, one of the biggest chicken growers/suppliers in Central Luzon, have valid reasons to be grateful to the Development Bank of the Philippines (DBP) for its lending assistance that has helped in their expansion and enjoyment of bigger profits and market share at present.

Prudencio S. Garcia, president of Mekeni Food Corporation, and Robert H. Lo, owner of Red Dragon Farm, narrated to Presidential Management Staff Director General and oversight official for micro, small and medium enterprise (MSME) development, Secretary Cerge Remonde, over a national television program recently how the DBP, the country’s most progressive development banking institution, helped lift their former small enterprises to their better place now in the business community.

According to Garcia, like many other businesses, Mekeni has had its own share of ups and downs. Established by his parents in 1986 in Porac, Pampanga out of their retirement packages, Mekeni was affected when Mt. Pinatubo erupted in 1991. He and his two other brothers, who were then based abroad, had to return to the Philippines for good. Raised as loving children, they helped in their family business while, at the same time, assisting their other “cabalens” rebuild their lives after the eruption. But bad fate struck the second time with the emergence of the foot-and-mouth disease, which was a big blow for Mekeni.

Nevertheless, the Garcias did not lose heart. They fought and survived together with their business. Through a P100-million assistance from DBP, the Garcias expanded their Mekeni business by building new facilities and purchasing additional equipment. They are grateful to the DBP for believing in their business proposal despite the devastation brought about by the volcanic eruption.

For three consecutive years – from 2004 to 2006 – Mekeni has been the recipient of the Best AAA Meat Establishment Award in the National Meat Processing Plant AAA Category. In 2006, it got the ISO Certification for Food Safety Management for Hotdog Processing Requirements from a Germany-based technical monitoring association – the first in the Philippines, first in Asia, and second in the world.

The Garcias revolutionized the family’s business by changing the sound of Mekeni, which in Kapampangan means “Come here,” to “May K Ini,” which stands for passion for excellence and quality. Starting with 40 employees, Mekeni has more than 700 workers at present and is now a buzz word in every home and community patronizing “tocino” and hotdog.

Red Dragon Farm owner Robert H. Lo, meanwhile, is thankful to DBP for its trust in his business. His poultry/chicken growing business started in 1989, but it met a lot of problems along the way, among them the rampant smuggling of chicken. He ventured into the piggery business but it did not expand due to high cost of inputs. Besides, assistance then was very limited for agricultural ventures.

After receiving several denials from other commercial banks, Lo was granted by the DBP financial assistance worth P70 million for a two-phase project. He bought a new technology called the Cool Cell System, which helps control the temperature of animals in the production area, and results to better conversion and lesser production cost.

A graduate of Veterinary Medicine from the University of the Philippines, Lo knew he could make it through the support of financing agencies like DBP. Today, Red Dragon Farm has 35 meat shops, with daily production of about 80 to 100 pigs and 7,000 chickens.

“Whatever your passion, go for it,” advised Lo, to which Remonde added during the TV program: “Pursue what you want to do most, come up with the best ideas and you will earn from it and succeed. If one loves what he is doing, it’s not work.”

Through the TV show the PMS Forum, the DBP assured its continuing support to small and medium enterprises through its retail and wholesale lending programs

Cresenciana R. Bundoc, senior vice president and assistant sector head of DBP’s branch banking sector, said DBP’s branches nationwide with five Super Region Management Offices and its 16 Regional Marketing Centers, are ready to assist the SME sector.

At present, DBP has P35 billion in capitalization and 80 percent of its borrowers are into SMEs. For those who want to avail of MSME loans, they can approach the DBP’s Regional Marketing Centers located all over the country where they can find the complete list of accredited microfinance institutions in particular areas.