Development of farming systems models integrating Jatropha curcas in various production systems: component 4.1: Ex-ante assessment of the production, promotion, and development of Jatropha curcas for biofuel

The passage of Republic Act 9367 also known as the Biofuels Act of 2006 was landmark legislation in the midst of the rising concerns over energy security and the worsening condition of the environment. This law mandated the blending of biofuel in all gasoline and diesel sold in the country. At present, coco methyl ester (CME) or the oil extracted from coconut satisfy the requirements for diesel blending. Ethanol from sugarcane, on the other hand, is blended with gasoline to conform to the mandates of the law. With the target blending for diesel fuel, Jatropha was identified as a potential feedstock for biodiesel. As a non-food crop, it will dispel the fear of some sectors of food against fuel situation. Grown on a significant scale, proponents of Jatropha saw the positive social, economic and environmental impacts of cultivating the crop in the country. The chain of activities from the nursery to outplanting, maintaining, harvesting, primary processing until oil extraction are labor intensive and will therefore enhance economic activities in the countryside. At present there is dearth of information on the technical, economic, socio-political, cultural and institutional aspects of Jatropha. Hence, it could pose constraints to the full realization of the expected benefits. Although many of the Jatropha initiatives are still in the early stages of development, there is a need to study and analyze these experiences and to draw lessons. Against this backdrop, this study was conducted with the general objectives of providing a preliminary estimation and valuation of the economics of Jatropha production; conducting a social and economic impact analysis of Jatropha production, promotion and development both from the growers' and project implementers' perspective; and reviewing and analyzing the existing policies on biofuel and related laws on agriculture, environment and trade. The project conducted an ex-ante social, economic and institutional analysis of the production, promotion and development of Jatropha. Primary data gathering was done through key informant interviews and focus group discussion. Two sets of questionnaires were developed: one for project implementers and another one for households. A total of 19 Jatropha projects distributed in the three major islands of the country were included in the study. The study team visited and documented in photos and scripts their Jatropha nurseries and plantation sites. The Jatropha industry is still an infant industry with majority of the plantations barely three years old. Currently, planting initiatives can be classified either as an LGU [local government unit]-led or a private-led Jatropha production, promotion and development project. Whether the Jatropha project is LGU-or private-led, three different modes of business arrangements were observed in the study area visited. These are the production/growership agreement, the lease agreement and the joint venture agreement. Samples of LGU-led Jatropha production initiatives included as samples in the study were Quezon Province Jatropha Project; Camarines Sur Provincial Government Jatropha Project;Jatropha Project of Bayawan City, Negros Oriental. Samples of private-led Jatropha production initiatives on the other hand, include the Herminio Teves and Company, Inc. (HTCI); Royal Green Energy Development Corporation; Bioenergy Farms Multi-purpose Cooperative; Freshwind Biotech Corporation;and the Alabel, Sarangani Province Jatropha Project.