Vol. XXII, No. 194
Wednesday, May 6, 2009 | MANILA, PHILIPPINES
Corporate News
CORPORATE FILE
Gold in Grass Corp.
VARIOUS SECTORS have complained that the economic development being touted by the government has yet to reach the countryside — where people remain poor, unemployed, and uneducated.
But while critics continue to hit the state for failing to provide for the needs of the poor, some businesses believe they also have a role to play in helping rural folk obtain sources of livelihood.
Among them is Gold in Grass Corp., a family-owned corporation engaged in the production of essential oils out of lemongrass, locally known as tanglad, salay or baraniw.
"It is basically our interest to produce products out of the lemongrass that prompted us to set up this business. But apart from that, it is also due to our advocacy to help the communities. We choose the poorest communities and we source our laborers from them," said Lilia Pelayo, finance and marketing officer of Gold in Grass.
Gold in Grass employs around 40 workers, majority of whom are farmers who plant the lemongrass in the company’s plantations.
Ms. Pelayo, also one of the owners of the company, said she wanted to help poor rural communities because she herself had experienced hardship.
"We are from Kalinga. I was born there and my brothers grew up there. There came a time when we had to look for something we can rely on, something that would give us income. We decided to look into the benefits of lemon grass which is abundant," Ms. Pelayo said.
Ms. Pelayo and members of her family, some of whom are engineers and scientists, initially built a plantation in their province but security reasons prompted them to move to Cagayan Valley.
"Some outsiders came to see our farm. Some of them are suspecting that we are not really interested in setting up a business. We felt uneasy so we decided to leave and move to another place," she said.
But the trials did not end there. Ms. Pelayo said the new plantation was located beside rice farms. When rice farmers sprayed insecticides, many of their crops withered and died.
The family then moved the business to Sariaya, Quezon.
"We invested around P15 million for this business. We spent around P5 million to buy the necessary equipment while P10 million was spent to develop the land where we plant the grass," Ms. Pelayo said.
Founded in 2001, Gold in Grass has 40 hectares of plantations dedicated to lemongrass in Cagayan and in Quezon. It is a member of Spa Association of the Philippines and the Organic Producers Trade Association.
The company’s primary products are essential oils and lemongrass hydrosol. Essential oils are used for relaxation and aromatherapy while hydrosol is a "wellness" product that can induce urination and perspiration in as little as one hour.
This is possible since lemongrass have natural ingredients that helps detoxify the body, cut down on uric acid, cholesterol, toxins and excess fat.
The company also offers massage oils that can reduce pains caused by arthritis, rheumatism and stomach ache; soaps and even organic juice.
The company’s target markets are spas, hotels, pharmacies, and people who prefer organic products.
"If we use organic products we can avoid synthetic ones which may pose dangers to the health. Some of these synthetic products are made of chemicals that are carcinogenic," Ms. Pelayo said.
Gold in Grass has an advantage since "the world is becoming aware of the properties of organic and natural products," she added.
The company promotes its products by joining trade exhibits, and through a showroom in Makati. Gold in Grass products are also available at the Organic Producers Trade Association office in Loyola Heights, Quezon City.
The company has also exported small quantities of essential oils to the United States. Gold in Grass plans to increase production to meet the growing demand for organic products here and abroad, and is open to producing new products from other types of grass.
"We also want to go back to Kalinga to set up a plantation there," she said.
Ms. Pelayo acknowledged that the company’s business plans would not have materialize if not for the laborers producing the raw materials.
"If not for them [laborers] we would not be able to sell these products. They found a source of income and they grow our lemongrass. We have to give in order to receive. We would be happier if other people are also happy," she said.
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