LAAK, Davao de Oro – After years of anticipation and relentless collaboration, the Department of Trade and Industry (DTI) Davao de Oro officially inaugurated a P13.6 million shared service facility (SSF) for natural crumb rubber SPR-20 processing at the Laak Multipurpose Cooperative.
This landmark development marks a transformative leap for the rubber industry, not only in Davao de Oro but also across the Davao and Caraga regions, by strengthening the local rubber value chain, expanding livelihood opportunities, and promoting sustainable economic growth.
Bringing the facility to fruition was the result of extensive coordination among national and local government units, private sector stakeholders, and community cooperatives. Years of persistent effort were required to overcome technical, logistical, and infrastructural challenges and position Laak as a key contributor to the country’s natural rubber supply chain—aligned with national goals for agricultural modernization and rural development.
DTI Davao de Oro acting provincial director Art A. Hermoso acknowledged the project’s most pressing hurdle: securing a stable and adequate power supply in a rural setting.
“Through continuous coordination with local and provincial governments, and with the unwavering commitment of LAMPCO and its partners, the power issues were finally resolved, paving the way for the SSF’s full-scale operations,” Hermoso said during the launch last July 7.
DTI XI regional director Romeo L. Castañaga and assistant regional director Rachel S. Remitio, who attended the ceremony, underscored the SSF’s strategic role in establishing Davao de Oro as a major rubber processing hub in Mindanao.
“This project reflects our commitment to improving the lives of our farmers by equipping them with tools and facilities that enhance productivity and product value,” said Castañaga. “Through the SSF program, we’re fostering inclusive growth and moving toward global competitiveness.”
Echoing this vision, Philippine Rubber Industries Association (PRIA) president Ellen Tan-Go emphasized the facility’s broader national significance. “This is more than a local achievement—it’s a benchmark for public-private collaboration in revitalizing the Philippine rubber industry,” Tan-Go stated. “The SPR-20 facility in Laak positions us to raise the global profile of Philippine rubber and strengthen Mindanao’s supply chain.”
Strategically located in Poblacion Laak, one of Mindanao’s major rubber-producing areas, the state-of-the-art facility provides rubber farmers and cooperatives with advanced equipment and technical support for processing Standard Philippine Rubber (SPR) 20. This value-added production allows farmers to command higher prices, access more competitive markets, and reduce dependency on raw rubber sales.
Davao de Oro Governor Raul Mabanglo, through provincial government chief of staff Anicieto Torrejos, expressed full support for the initiative.
“This facility proves what can be achieved through unity and shared purpose. It will open new doors for our rubber farmers, spur job creation, and fuel long-term growth in the province’s agricultural sector,” Torrejos said.
The SSF is projected to benefit over 2,000 rubber farming families, directly improving incomes, creating employment, and encouraging sustainable practices such as proper waste management and environmentally responsible processing.
The launch gathered a diverse range of stakeholders, including officials from the DTI, the Provincial Government of Davao de Oro, the local government unit of Laak, the Department of Agriculture (DA) Provincial Agricultural Office, the Department of Science and Technology (DOST), PRIA, and various farmer cooperatives. All of them shared a collective optimism about the facility’s long-term impact.
As the demand for natural rubber continues to rise, the Laak SSF positions Davao de Oro as a critical node in the country’s rubber supply chain. This initiative reflects broader efforts to modernize Mindanao’s agricultural landscape by providing farmers with modern processing technology, access to training, and stronger market linkages – ultimately enabling inclusive and sustainable economic development for farming communities across the region. DTI XI
