DA Caraga Grants P14.8M Kadiwa Funds to Caraga Farmers and LGUs

The Department of Agriculture in Caraga turned over P14.8 million in financial grants to four local groups and government units on Wednesday, Nov. 11, according to the Philippine Information Agency.

The funds, distributed through the Enhanced Kadiwa ni Ani at Kita program, aim to bridge the gap between rural producers and urban consumers. By providing capital for logistics and infrastructure, the initiative seeks to bypass the middlemen who traditionally capture much of the profit in the agricultural supply chain.

This rollout follows a directive from President Ferdinand R. Marcos Jr. to strengthen the link between food producers and institutional buyers. The grants are designed to make the transport of produce more efficient and to establish dedicated Kadiwa retail stores that offer fresher goods at more affordable prices.

For many small-scale farming collectives, the primary barrier to higher income isn’t the quality of the harvest, but the ability to move it. The Katipunan Agricultural Producers Cooperative (KAPCO) in Dabkayan, Bayugan, Agusan del Sur, is among those receiving a P2.5 million boost to address this exact bottleneck.

KAPCO, which trades high-value crops like vegetables and cacao, previously struggled with the physical costs of market access.

“We lacked the capital for a vehicle to transport our products, so the assistance we received from the Department of Agriculture-Caraga means a great deal to us,” said Rico Ocay, KAPCO chairperson. Rico Ocay

The Sitio Antipolo Farmers Association of Buenavista, Agusan del Norte, Inc. (SAFABAI) is also utilizing a P2.5 million grant to purchase a delivery vehicle and secure working capital for its coffee trading operations.

The distribution of these funds highlights a shift toward localized control of the supply chain. When cooperatives own their own hauling assets, they can dictate their own schedules rather than waiting on third-party logistics providers.

Beyond individual associations, local government units (LGUs) are receiving larger sums to manage post-harvest losses through specialized equipment. The scale of these investments varies depending on the specific logistical needs of the municipality.

Recipient	Grant Amount	Intended Use
Sibagat, Agusan del Sur	P5 million	Hauling truck and KADIWA Consolidation Center
Cagwait, Surigao del Sur	P4.8 million	Chilled van and stake truck
KAPCO	P2.5 million	Logistics and transport
SAFABAI	P2.5 million	Delivery vehicle and coffee trading capital

In Sibagat, Agusan del Sur, the P5 million grant will fund a hauling truck and the establishment of a KADIWA Consolidation Center. Meanwhile, the LGU of Cagwait, Surigao del Sur, received P4.8 million to acquire a chilled van and a stake truck, specifically to improve post-harvest handling.

These specialized vehicles are critical for maintaining the cold chain. By using chilled vans, municipalities can prevent spoilage during transit, ensuring that more of the harvest actually reaches the consumer in sellable condition.

DA Caraga Regional Executive Director Ricardo M. Oñate, Jr. and Regional Technical Director for Operations Rebecca Reyes Atega handed over the checks at the DA Caraga regional office. Oñate emphasized the agency’s commitment to the region’s agricultural workforce.

“To our partners in local government, the DA is always here to help Caraganons in their livelihood,” Oñate said.

While the direct injection of capital provides immediate relief for transport costs, the long-term success of the Kadiwa program relies on the ability of these groups to maintain equipment and consistently connect with buyers. The program’s ability to reduce food prices for consumers depends on whether these new logistics chains can truly compete with established middleman networks.

The Enhanced Kadiwa financial grant allows for up to P5 million to be awarded to various cooperatives, associations, and community-based organizations.