Apo ni Lola Durian Delicacies - Pasalubong Center

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Outside Help Comes In

The journey however was long and slow, but this did not stop Jojo. He reminisces on those early years of his business, when he relied so much on the so-called “loan sharks” to provide him the badly-needed capital, having no other lending window to turn to. This came to a stop when he was able to link up with various institutions such as non-government organizations (NGOs), government agencies (Gas), and financial cooperatives.

More than 15 years later, his big break finally came with assistance from MASICAP Foundation in 2008. This was made possible through the Department of Trade and Industry’s (DTI) One Town One Product (OTOP).

The Davao City-based team of the MASICAP Foundation prepared the Feasibility Study which was then submitted to the Development Bank of the Philippines (DBP) for possible financing assistance under the DBP-OTOP Financing Facility. By February 2009, said loan application was approved and released for P100,000.00. Half of the amount was used by Jojo to renovate and improve his store at Matina, Davao City, and the other P50,000.00 was used as additional working capital. In just a few short months, production increased by 60%, and his sales to go with it.

From just 1 to 2 cooking sessions per day when it started, Jojo now cooks 6 to 8 rounds of durian sweets a day, sometimes reaching 10 cooking sessions during peak season, such as the Kadayawan or Christmas. This he personally handles, and maintains that he has a hands-on approach in all aspects of the business, from pre-production such as buying raw materials, cooking, packing, labeling, to post-production such as marketing and promotion, and financial management.

A local distribution company for a milk product has likewise offered to supply his condensed milk requirement by giving him a 30-day credit with which to settle goods consigned to him. He now consumes 50 cases of the company’s milk product every month, up from 15 cases per month in years past, when he used to go to supermarkets for his requirement. This arrangement has enabled him to expand his production with just a minimum cash outlay.

Other raw material needs, such as fresh native durian, he gets from a well-established supplier who ensures he gets the much-needed supply anytime of the year. This can prove to be difficult, especially in lean months when the supply of native durian wanes, or when competition is at its peak. In such cases, his supplier goes the extra mile by sourcing out from other producers/middleman just so he gets the volume he needs. This has proven to be very vital to his operations, enabling him to keep pace with the growing demand for his durian sweets.

This “normalcy” in operations throughout the year has likewise enabled him to operate as planned, and has in turn afforded him the chance to hire 9 regular workerswho assist him in all aspects of the business. This is a significant improvement from the 3 staff he had when he was just starting.

Estimated gross sales per month for 2009 now reaches P160,000.00, which is more than double the P60,000.00 monthly gross sales in 2008. This big turnaround can be attributed to the DBP loan and the arrangement he has with a local distribution company for a milk product, not to mention the word-of-mouth promotion from old and new-found customers, as well as participation to trade fairs, both local and national.