Bar Today Home Editorial Archives Links Contact Us
Making Technology Work for Agriculture & People   Bureau of Agricultural Research
Bureau of Agricultural Research


R&D Notes
Highland Coffee
Salted Duck Egg
Moringa
Pigeon Pea
Fruit Wine
Carabao Dairy
Feature Story
Ubi Powder
Bioethanol
Bagoong Cubes
Cashew Apple
Culinary Herb
Analysis & Opinion


WWW BAR

Today is :


Feature Story

LA Trading: A sweet success that is "ripe" in season

Story by Rita T. dela Cruz

October-December 2008
Volume 10 Issue No. 4

 

Lito M. Arenas, a successful-entrepreneur from Pangasinan.

Mangoes are at their best when they are ripe in season not induced by chemicals or some special processing technique to speed their ripening process. Mangoes that are harvested at the right picking season are best consumed because they naturally smell and taste good. But before it reaches maturity- every mango needs to go through different production stages, one that requires careful attention and effective cultural management.

The successful story of farmer-entrepreneur, Lito M. Arenas is somewhat likened to a seasoned ripe mango- rich, lush, and sweet. The Filipino phrase, hindi hinog sa pilit, expresses it fully. His life has gone through the natural course of "ripening" that he and his family are now reaping the sweet fruits of their success.

But like every mango, it goes through the sour stage. How Lito came through the sour stage is not purely based on luck. "Life is never easy. Our success was founded on hardwork, perseverance, dedication, and resolute faith in God," Lito confessed as he retold his humble beginnings.

His success in mango farming has been featured on the radio, television, and print that he is now one of most familiar faces in the agriculture sector. His name automatically pops up whenever one needs of a testimony of a successful farmer-entrepreneur. And truly, he continues to live up to the expectation not only of the officials from the agriculture sector but also his fellow farmers who look up to him for guidance and inspiration.

Lito and Ching Arenas during their
wedding day wherein a sum of
P2,500 was collected from the money
pinned on their dresses.

"Everything has to start from scratch"
Like every beginning, it's starts (almost) with nothing. For Lito and his wife Ching, their beginning is synonymous to P2,500.

Their story started when the couple met at the Luzon Colleges in Dagupan, Pangasinan. After finishing their courses in nursing, Lito and Ching got married. In the traditional dance at their wedding, guests pinned money and P2,500 was collected which later become their capital to start their mango buying and selling business.

From then on, hardwork, perseverance, and a wink by lady luck took over their fate. Lito went as far as Batac, Ilocos Norte just to find the best mango planting materials for his farm. He started providing a stable ground for his business by establishing connections from different regions as a mango contractor.

He started his venture at his father's farm, a three-hectare land which has become utterly familiar to him as this was also the place where he gained his first experience in planting mangoes being the eldest of the Arenas clan.

"When I was still in elementary, I helped my father and uncle in the farm. Since I was just a child then, my work is limited to cleaning and cutting the grasses. In the afternoons after school, I was in-charge of manning our mango stall in Urdaneta," recollected Lito. His experiences as a child taught him a lot which eventually brought him closer to the heart of business.

As a nursing graduate, Lito finds no regret when he took firm grip of his fate as a farmer-entrepreneur. "God had other plans for me. I did not have the opportunity to practice what I studied in college but it played an important factor for me. In business, you need people's trust in establishing linkages. Our clients and partners trust us. Besides, I might not have met my wife if I had not taken nursing as a course." Lito avowed that they can still practice being dedicated nurses to their four children.

Lito continous to learn the heart and soul of his mango
trading business

"The sour taste could sometimes make you cringe"
For anyone who wanted to make it big, success never comes easy. And just like any mango that goes through the process of maturity, it needs to outstrip the sour stage.

During the course of establishing his business, Lito encountered several difficulties. One major problem that he needed to deal with was the high input and fertilizer costs. He outwitted these problems by seeking financial support from creditors endorsed by the Department of Agriculture (DA).

To make up for his lack of technical know-how in mango production, he attended trainings and seminars on production and post-production technologies. This complemented his innate entrepreneurial skill developing further a deep sense of understanding of the mango industry.

To strengthen benefits in mango production, Lito established the Pangasinan Tropical Fruits Multi-Purpose Cooperative (PTFMPC) located in front of LA Trading's office in Brgy. Matulong in Manaoag, Pangasinan.

Lito's hardwork paid off when he started supplying mangoes to big local companies. "We were supplying fresh mango fruits to big local companies such as KLT Fruits, Pure and Rich, Tres Martires, and Hi-Las Marketing Corp.," said Lito.

But the best is yet to come. The biggest break for him came a decade after when Zest-O Corporation, one of the major fruit drink manufacturers in the country, contracted him to supply mangoes for them. "We are supplying 60 percent of the mango demand of Zest-O Corporation and 30 percent of KLT Fruits.

This prompted Mang Lito to establish more buying stations and expand hectares of land for mango plantation. "Due to the high demand for our mangoes, we needed to increase our production and meet the immediate demand," he said. He also started the mango processing business to make up for the surplus production.

Lito with Digna Sandoval of TCU-BAR
check how mangoes from Iran are
exported during a market reconnaissance
study in EU and UAE.
Lito looks into the packaging process of
Karachi mangoes from Pakistan that are
sold in the Europeanmarket.
Karachi mangoes from Pakistan.

"Expanding horizon means going global"
Although the demand in the local market is already good, Lito and Ching are also aiming for the world market, finding a way to introduce one of the bests (if not the best) mango variety from the Philippines.

The international market opened its doors to Lito's company when he was introduced by a friend to mango distributors to Hongkong. Soon, his mangoes found their way to Hongkong, and later, Japan.

"In 2006, with the support of DA-BAR under the leadership of Director Nicomedes P. Eleazar, we conducted a market reconnaissance study together with experts from UPLB, AMAS, and BAR. We visited major market outlets in countries of the European Union (EU) and United Arab Emirates (UAE) to identify potentially profitable markets for Philippine fruits and vegetables," narrated Lito.

The funding of the market reconnaissance study was made possible with the assistance of the Bureau of Agricultural Research (BAR) through the National Technology Commercialization Program (NTCP). It is one of the banner programs of BAR in meeting its goals for the modernization of agriculture, jobs creation, and building profitable enterprises. With the implementation of NTCP, it is envisioned that technologies are strategically placed and transferred to areas and communities that most need them and thus enhance technology transfer as well as realize the impact of research results.

Specifically, the study in which Mr. Arenas joined in hoped to 1) identify the profile (kind, quality, selling price, labeling and packaging) of tropical fruits that are currently being marketed in EU (Rome, Switzerland, France, and UK) and UAE; 2) determine the main routes and transit time along with the handling route of tropical fruits from the country of origin to major market outlets in UAE and EU; 3) cite possible importers of Philippine-grown tropical fruits and vegetables; and 4) determine sanitary and phytosanitary requirements, problems and constraints in exporting.

"During the study, we visited wholesale retail markets that conduct quality profiling of their imported fruits. We wanted to know the retail prices of their commodities and how the Philippines can comply with the packaging and labeling requirements. This was done so that we could look into the possibilities and potentials of how our mangoes can break into the world market particularly in those countries wherein quality standard needs to be strictly complied."

Visits were coupled with interview and discussion with the importers and retailers to determine the import demand volume and quality requirements as well as the distribution channels of imported produce. The group of Lito also gathered secondary data on sanitary and phytosanitary requirements and trade regulations from concerned agencies and collected actual fresh samples and obtained specific information for promotional purposes.

Lito is the only BPI-certified producer of grafted mango
seedlings in Region I.

"No man is an island"
Lito's mango recipe for success is not a one-man-effort. He sought help from various government agencies either through financial support or by availing of the latest technologies on mango production and post-production.

Aside from being a mango grower/contractor, Lito is also a nursery operator and seed grower. He buys his seeds from accredited agencies such as the Bureau of Plant Industry (BPI) and seeks technical assistance on Good Agricultural Practices (GAP) from the University of the Philippines Los Baños (UPLB).

He started operating his nursery in April 2006 establishing his own greenhouse for all his planting materials. He is the only BPI certified producer of grafted mango seedlings in Region 1. He produces 65,000 pieces of grafted mango seedlings. "We grow the seeds out of our dried mango processing business and we use them as rootstock so that there is no wastage in our operation," said Lito.

PTFMPC is producing export quality processed products
from mango.

His nursery operation continues to thrive along his other booming business-dried mango processing.

In the form of a grant, DA-BAR provided him two units of drying machines to process his fresh mangoes. This takes care of the postharvest losses during peak season in the forms of mango rejects and market wastage. The facility can produce 27 metric tons of dried mangoes per month. At least 180 metric tons of fresh mangoes are needed to produce 27 tons of dried mangoes. This provided him the opportunity to export processed mangoes in Guam and Dubai.

Through DA-HVCC, Lito was also provided the Extended Hot Water Treatment (EHWT) facility to comply with the phytosanitary requirement imposed by the Chinese government and to export mangoes to Hongkong and mainland China. The EHWT facility destroys eggs of fruit flies in fresh mangoes. "The requirement was imposed by the Chinese government due to the discovery of mangoes infected with fruit flies from previous exports," Lito said.

A typical, busy day at the LA Trading office. With Lito & his
wife, Ching (left, foreground) who helps in all their business
transactions.

Lito said that a lot of his fellow mango growers and contractors are benefiting from these facilities. The mango processing business generates more 200 workers especially during peak season. They could now command higher prices for their produce.

Each month, a ton of dried mangoes is produced for export to Japan and the United Arab Emirates. The plant has also started producing pickled mangoes and papaya for export to Canada.

"Pangasinan is a top producer of mango in the country, contributing 41 percent of the total production. This was the first time however, that a mango processing plant was established in the province. That's why I am happy to note that government agencies are supporting this kind of endeavor for the mango industry," Lito enthused.

"You reap what you sow"
By now, the name Lito Arenas or LA Trading is becoming a trademark. Favorably, his story is often cited by Agriculture Secretary Arthur C. Yap as a classic example of someone who rose in the ladder of success not by sheer luck but by hardwork and perseverance. As Secretary once said: "Lito started as a mango picker and now he is one of the biggest exporters of mangoes in the country."

Lito repays his blessings by giving free seminars and advice
to his fellow farmers and agriculturists.

Currently, LA Trading is not only into fresh and dried mangoes. They have expanded their market by producing other mango processed products such as dried mangoes, pickled mangoes, tamangoes (mangoes in tamarind syrup), and pickled papayas. Recently, they ventured into pineapple processing. Locally, these products are also sold on a consignment basis in leading specialty shops and restaurant all over Pangasinan. LA Trading products are also gaining fame all over the country through local distribution which are exhibited during agricultural exhibits and technology seminars and fora.

Lito is all thanks and praises to the Lord for all the blessings He has given him and his family. This has made him and his wife want to share his blessings with others.

He said, "I return all my blessings by helping others. Those who need guidance and inspiration, they could come to me. Those who need the advice I am all willing to serve." When asked what is his advise to farmers who also wanted to make it big in the business but do not know how, he said: "Kung may tiyaga, may ilalaga". He added, "It is good to have a dream in life but you also need to do something to achieve it."

 

 
 
    Copyright © 2002 Bureau of Agricultural Research