CAGAYAN — What began as a small, manually operated bakeshop in Piat, Cagayan has grown into a technology-upgraded food-processing enterprise serving institutional markets and providing employment in the community, with assistance from the Department of Science and Technology’s Small Enterprise Technology Upgrading Program (DOST-SETUP).
After 22 years of working overseas, Susan T. Pagulayan returned home and established Susan’s Bakeshop in 2015 in Duyagong, Piat. The enterprise initially produced banana cakes, carrot cakes, and chocolate-based products using largely manual production methods.
As demand increased, however, the growing business faced challenges in production capacity, food safety, packaging, and efficiency.
DOST-SETUP became a key intervention in addressing these challenges.
In 2019, Susan’s Bakeshop received its first DOST-SETUP assistance amounting to P103,740, which enabled the enterprise to acquire Good Manufacturing Practices (GMP)-compliant stainless-steel working tables, aluminum molders, and customized molding racks.
The equipment improved food handling and production processes while reducing contamination risks associated with wood-contact surfaces. The improvements also helped the enterprise strengthen its compliance with food safety requirements, eventually securing a Food and Drug Administration (FDA) License to Operate.
With its improved production and food safety practices, Susan’s Bakeshop also became an official technology adopter of the DOST-Food and Nutrition Research Institute’s Enhanced Nutribun, expanding its capacity to participate in institutional food supply opportunities.
As the enterprise entered larger markets, including contracts with the Department of Education, production volume increased and manual packaging became a bottleneck.
A second DOST-SETUP intervention worth P630,000 addressed this challenge through the acquisition of an Automatic Flow Wrap Packaging Machine. The equipment increased packaging capacity from manual operations to approximately 28 to 150 packs per minute, depending on the product and packaging requirements.
The automated system also improved product protection by minimizing exposure to dust, moisture, and other potential contaminants during packaging.
Beyond equipment, DOST provided consultancy services on Cleaner Production Technology and Occupational Safety and Health, helping the enterprise improve resource efficiency, workplace safety, and overall production practices.
Across its two phases of assistance, Susan’s Bakeshop received a total of P733,740 in DOST-SETUP technology-upgrading assistance.
The interventions have contributed to the enterprise’s continued growth. From an initial workforce of three, Susan’s Bakeshop now employs 16 full-time workers and has strengthened its capacity to meet the requirements of institutional clients while exploring opportunities for market expansion.
Pagulayan’s experience demonstrates how appropriate technology and government support can help micro and small enterprises overcome production challenges and become more competitive.
Her journey from overseas employment to entrepreneurship also highlights the potential of returning workers to create livelihoods not only for themselves but for others in their communities.
Through DOST-SETUP, Susan’s Bakeshop has moved beyond its beginnings as a small, manually operated enterprise toward a more efficient, compliant, and technology-driven food-processing business—turning a homecoming into an opportunity for growth and job creation in Cagayan.