Bagoong Cubes

Ever heard of Bagoong Cubes? Yes, your bagoong alamang (shrimp paste), and bagoong isda (fish paste) are now in cubes. They're great pasalubongs to kababayan overseas. Ok, here is the article and where to buy them, courtesy of BAR.

Messy no more with bagoong in cubes

by Christmas B. de Guzman and Carmencita L. Culasing, PhD Photos by CSU-CFMS and Rita T. dela Cruz

Who would have thought that the messy bagoong (fish paste) can be packaged into cubes?

Fish paste, commonly known as bagoong here in the Philippines, is a result of fish fermentation which is one of the traditional techniques of fish preservation. Due to its appetizing flavor, the product is highly preferred by local people especially those from Northern Luzon, Bicol Region and Western Visayas.

As we all know, the traditional bagoong is usually packed in bottles with little solids and is quite messy to handle. In addition, they are packaged heavily requiring bigger space that demands higher fare rate.

Bagoong in cubes, however, are packed in cut rite, aluminum foil and carton. Filipinos fond of adding bagoong in their dishes would find it more stable, handy, and appealing as compared to traditional bagoong.

Novelty product
Bagoong cube, which is now in the market, is a novelty product developed by Dr. Carmencita L. Culasing of the Cagayan State University-College of Fisheries and Marine Sciences (CSU-CFMS) in Aparri, Cagayan. This was an offshoot of a study titled "Preparation of Dried Products from Fish Paste (Bagoong Cubes)" conducted through the assistance of the Department of Science and Technology-Philippine Council for Aquatic and Marine Research and Development (DOST-PCAMRD).

Dr. Culasing conducted three specific studies. The initial study aimed to identify the best fish species for bagoong cubes; the second, investigated the optimum fermentation period for bagoong cubes making, and the third focused on the effect of antioxidant on the sensory qualities of bagoong cubes.

According to these studies, the hairtail ("espada") was the best fish species or raw material for bagoong cubes making because of its color (lighter brown). But in terms of the general acceptability test, all the species used (hairtail, marine anchovies, freshwater anchovies, and round scad) were acceptable. It was also suggested in the findings that fermentation period of four to five months contributed the best sensory characteristics of bagoong cubes - four months for smaller fish and five months for bigger fish. Lastly, it was indicated that the effect of adding antioxidants improved the quality of bagoong cubes, particularly the odor of the product.

Dr. Culasing cited that the product was put into development because of the abundance of fish species used in making the condiment in the province.

Award winning technology
Bagoong cubes making is feasible throughout the year. The raw materials can be source out from the bagoong processors making it an additional means of livelihood for coastline communities. Producing bagoong cubes is technically viable since the raw materials are abundant and readily available.

Bagoong cubes making has a return on investment of 52.25% and a promising business producing export products. According to Dr. Culasing, the product has a longer shelf-life and the technology per se eliminates the problem of toxin production by Clostridium botulinum due to anaerobic and water content of the traditional bagoong. Furthermore, the absence of anaerobic bacteria makes it a safer food additive.

"As for the busy housewives, food preparation is minimized and cooking is easier when using bagoong cubes instead of the traditional bagoong," Dr. Culasing stated. "It is also convenient to handle and cheaper to transport because of its light packaging materials and absence of extreme ammoniacal odor," she added.

Taking into consideration its several advantages, Dr. Culasing's bagoong cubes won the second prize in the Aquatic Technology Competition and Marketplace sponsored by DOST-PCAMRD on 31 January 2007.

Market and economic considerations
The process of making bagoong cubes involves shorter fermentation period for it does not require a total dissolution of the fish flesh. Thus, an immediate turn-over of capital and greater profit could be attained.

Looking at shelf stability, bagoong cubes could last longer than the traditional bagoong which takes six months to finish the fermentation process. With lengthy fermentation process, growth of maggots could also be observed.

Production of bagoong cubes is sometimes not feasible during rainy months. Processors have to use a cabinet dryer as a substitute drying facility for the reason that sun drying may be impracticable or takes longer period of fermentation. If not properly dried or packed, bagoong cubes may promote the growth of undesirable molds.

Moreover, packaging of the product has an important role when it comes to market prospects. Dr. Culasing said that further improvement of the complete packaging of bagoong cubes, including the product logo design and quality of materials used is what she has been working out with the Industrial Technology Development Institute of the DOST.

"Another thing that could expand its market and make it more profitable is good product packaging that's why we are seeking the assistance of ITDI-DOST," she emphasized.

The product is at present being promoted by the Northern Luzon Aquatic and Marine Research and Development Zonal Center (NLAMRD-ZC) based at the Don Mariano Marcos Memorial State University (DMMMSU) in Bacnotan, La Union; which is one of the zonal centers coordinated by DOST-PCAMRD.

Price in the market is Php15.00 per pack containing 3 pieces of bagoong cubes.

How to set up a micro lending business

There are now many lenders in the rural communities through out the country. In the Visayas for example, groups such as credit cooperatives, Sameco, Taytay, Afsico, the local Bombay, Surigaonon, JBC, Card, to mention a few – all these are lending organizations – and are competing for clients in rural communities. The sheer numbers of rural lenders probably suggest that this type of business is lucrative. It is hoped that the interest charges are reasonable – but, IMO, always much higher than what a bank offers.

Many people flock to these lending groups than commercial banks because these lending firms are lenient in their requirements and processes loan applications faster than banks but offer high interest rates. If you are an OFW, or a business person with a capital you can set up a lending business – I would suggest, a lending business with collateral.

A lending business can be set up as a single proprietorship, partnership, or corporation but you cannot use the word “lending” or “finance” in your business name if you choose to set up your lending business as a single proprietorship or partnership. But if you organized a company into a lending corporation then you can use the words “lending” and “finance” in your business name. A corporation has many advantages compared to a single proprietorship or a partnership – ask your lawyer about this.

A micro lending business must raise the required minimum capital of 1 million pesos and must be registered with the Securities and Exchange Commission or SEC (www.sec.gov.ph). You will need to acquire the usual permits and documents in setting up a business such as Mayor’s permit, certification from the Bureau of Internal Revenue (BIR), and Social Security System, Philhealth, and Pag-IBIG coverage for the people working in your business.

Micro lending without quasi-banking activities may cater to private and government employees, farmers, fishermen, pensioners, sari-sari store owners, market stallholders, and OFWs. It is advisable for start ups to lend smaller amounts with short payment terms as this will make repayments faster and enable you to loan out money to more borrowers. Depending on the report of your credit investigator, or if you decide to be a community based lender, your community coordinator, you may offer loans from P 5,000 to P15, 000 with 1.5 to 5 percent interest per month. As is commonly practiced, payment schemes are daily or weekly for store and stall holders; 15/30 for employees and pensioners, however you may device a different system depending on your clients financial situation, for example if they are farmers, it could be once every two months (when copra is harvested), if piggery owners, once every three months (when pigs are big enough to be sold), if OFW once a month, and so on.

Although, micro lending usually doesn’t require collateral from the borrower you may ask for it (optional), you may require the borrower to have a co-maker to sign a promissory note and submit other documents. However, for loans of P50, 000 and higher collateral is a must, IMO. Any item that is of value can be used as collateral, such as jewelry, real estate, or vehicle, for as long as the borrower owns it. If the borrower doesn’t own the item put up as collateral, you have to ask him or her to submit an authorization letter or special power of attorney from the owner consenting to the use of the item as collateral. As the owner of the lending business, it is advisable to meet your clients personally to assess them of their character/integrity – if you have a community coordinator- ask for a community recommendation verbally from the community.

This business can be started with two to three employees: one to take care of releasing loans, a second to collect payments, and a third either a bookkeeper or accountant on retainer. If you can, you can hold one of the positions mentioned. It is also advisable to build an internal security system and a clear accounting system that can track each borrower’s account and the flow of money in the business.

You may watch the video below. Good Luck.