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O 040544Z APR 07
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5968
INFO RHHMUNA/CDRUSPACOM HONOLULU HI IMMEDIATE
RUEHZS/ASEAN COLLECTIVE IMMEDIATE

UNCLAS SECTION 01 OF 02 MANILA 001089 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/MTS 
STATE PASS USAID 
STATE PASS USDA/FAS 
 
E.O. 12958: N/A 
TAGS: EAID EAGR PGOV RP
SUBJECT: Ambassador Visits Successful USG Programs in Bicol 
 
REF: A) Manila 4916  B) Manila 4919 
 
¶1.  Summary: Ambassador Kenney traveled to communities in the Bicol 
region to view USAID- and USDA-sponsored development assistance 
programs focusing on dairy development, ecotourism, and coastal 
resource management.  The Ambassador's visit showcased successes in 
improving the livelihoods of communities in the region, providing 
feasible alternatives to illegal fishing and reducing poverty and 
thus the influence of  New People's Army terrorists.  Ambassador 
Kenney's visit was well-received by local and national Philippine 
government officials.  End Summary. 
 
Bicol Region: Agricultural Paradise Beset by Natural Disasters 
------------------------------ -------------------------------- 
 
¶2.  Bicol is a region with fertile volcanic soil but plagued by 
natural disasters due to its location in the direct path of typhoons 
and its susceptibility to volcanic eruptions, mudslides, and 
earthquakes.  The region is still recovering from the summer 2006 
Mount Mayon eruption and November 30, 2006 Typhoon Reming.  The USG 
provided over $350,000 for relief assistance to the region after the 
typhoon. (Refs A and B)  The USG also has well-established 
development assistance programs in the Bicol region to address 
long-term goals, including reduced poverty and improved coastal 
resource management. 
 
Enhancing Dairy Development 
--------------------------- 
 
¶3.  With USDA funding Land O'Lakes, Inc. is assisting the Philippine 
National Dairy Authority (NDA) in expanding local dairy production 
in Camarines Sur.  This public-private partnership provides 
opportunities for enhanced local production and business investment 
in the Bicol region.  USDA has provided approximately $18 million in 
support to dairy development and school milk feeding programs in the 
Philippines since 2002.  In 2006, USDA approved a Food for Progress 
grant of $4 million to Land O'Lakes to expand dairy development and 
school milk feeding programs. 
 
¶4.  The Ambassador visited a small farm and awarded the farm owner a 
pregnant dairy heifer provided by Land O'Lakes.  Using Food for 
Progress funds, Land O'Lakes works with local dairy cooperatives in 
the Camarines Sur province in the Bicol region.  Most of the members 
of these cooperatives own no more than five dairy animals.  Land 
O'Lakes has distributed 1700 heifers, specially bred to thrive in 
tropical climates and survive typhoon conditions, in the 
Philippines.  Ambassador Kenney observed the next step in the dairy 
production process by visiting a small USDA-funded dairy processing 
plant built to increase local dairy production.  This goes 
hand-in-hand with making dairy production more community-based, as 
the farmers may sell fresh milk produced by their heifers to the 
local production plant, keeping their product local and maintaining 
the quality of the milk.  USDA has funded seven dairy processing 
plants throughout the Philippines.  Farmers told the Ambassador that 
their monthly earnings have increased to about 6 thousand pesos 
($120) per month, from 100 to 200 pesos ($2 to $4) previously. 
 
¶5.  The School Milk Feeding Program represents the final stage in 
dairy production--providing dairy products to the schoolchildren. 
This program is designed to introduce milk to children's' diets and 
improve nutrition.  The Ambassador visited an elementary school and 
talked to schoolchildren who are receiving a USDA-funded morning 
meal consisting of milk and a fortified biscuit.  Since 2002, USDA 
support has provided milk to more than 250,000 Filipino 
schoolchildren.  Teachers reported that the children are more 
attentive and ready to learn after their morning meal.  Luis Ray 
Villafuerte, Governor of Camarines Sur, and Arthur Yap, Philippine 
Secretary of Agriculture were present at these events and were 
 
SIPDIS 
enthusiastic about the success of the programs. 
 
Improving Livelihoods 
--------------------- 
 
¶6.  The Ambassador observed a USAID-sponsored ecotourism program 
firsthand by swimming with whale sharks in Donsol, Sorsogon 
Province.  Whale sharks spend five months a year in Donsol waters. 
Since their publicized appearance in Donsol in 1998 the whale sharks 
have attracted the interest of both international tourists and 
poachers.  In 2003 USAID awarded a $368,000 grant to the World 
Wildlife Fund (WWF) to implement the Community-Based Ecotourism and 
Coastal Resources Management project in Donsol.  The program focuses 
on ecotourism, coastal law enforcement, and best fisheries 
practices.  Since 2002 over 8,000 tourists have participated in 
controlled whale shark interactions and Donsol has earned over 4.2 
million pesos ($87,500) in registration fees and payments for other 
services.  During the Ambassador's visit, tourists from the U.S., 
Russia, Denmark, Australia and the Philippines were present at local 
resorts.  Ecotourism has provided a profitable alternative to 
 
MANILA 00001089  002 OF 002 
 
 
illegal fishing and has led to a decrease in terrorist activity. 
Many whale shark guides and boat operators are former members of the 
New People's Army.  Recognizing the importance of the whale sharks 
to the local economy, these guides also guard the animals from 
poachers.  The ecotourism program has strong local government 
support.  The Mayor of Donsol discussed how the community has 
benefited from the program but lamented the challenges posed by 
continued illegal fishing in the area. 
 
¶7.  The USAID/World Wildlife Fund project also includes coastal 
resource management programs in communities around Donsol. 
Ambassador Kenney visited a mangrove conservation and mudcrab 
fattening project in Barangay Sebago, a small, impoverished village 
located adjacent to mangroves.  Using USAID funds the World Wildlife 
Fund established the Mangrove Management Council, composed of local 
residents and leaders.  Members received training in mangrove 
conservation and techniques for raising mudcrabs in the mangroves. 
The mudcrabs are edible and easily sold to nearby 
communities--making them a profitable and renewable resource.  In 
January 2007 members began raising mudcrabs in the nearby mangroves 
and the first harvest is expected in May 2007.  Since the business 
depends on the health of the mangrove ecosystem, villagers now have 
a direct interest in its protection.  Ambassador Kenney highlighted 
the successes of these programs in improving the livelihoods of 
people in the Bicol region during a television interview shown on 
national television. 
 
KENNEY