You are on page 1of 82

2

Table 1 Project Time Table


Activities October Planning of X Operation Construction of Storage Room X and Electric Installation Processing of Permits and Licenses Acquisition of Materials for the operation Hiring of Farm X Workers Start of the X Operation X X Schedule 2011 November December January 2012

PROJECT SUMMARY Market Study

The main product of this project is cabbage head. The demand for cabbage in South Cotabato is higher than the supply. The trend of supply for the last six years is increasing because of the increasing production area of cabbage. The trend of demand also increases because of the population growth.

Hence, there is a high unsatisfied demand for the last six years except from 2009 because of the high supply of cabbage in the said year due to the additional 9 hectares of production from 2008-2009. The price trend is fluctuating from year 2005-2010 due to the large supply of the product from the near provinces like North Cotabato and Sultan Kudarat.

Technical Study The proposed project will be located in Barangay Palian, Tupi, South Cotabato with a total land area of 11,000 square meters. The area has a sandy loam soil with a pH of 6.0 with cool moist weather condition which is suitable for cabbage production. The recommended technology by the municipal of Tupi will be the best basis in cultivating cabbage in Barangay Palian.

Financial Study

The proposed project will start to operate with an initial capital of 183,232.50 pesos. The project will be funded by the owner himself, Mr

Macaraeg. The business could pay its initial investment in less than a year. After the operation, the average return of owners investment is 205.67% for six years of operation with a net present value of 4357237.21 pesos.

Organizational and Management Study

The proposed project will be a sole proprietorship form of business organization. The owner-manager, Mr. James Macaraeg will be tasked to manage the project. He is knowledgeable enough and has all the resources to manage the project because he is engaged in farming for several years. Laborers will be hired to perform specific work in the operation.

Socio-Economic Study

The proposed project contributes the local area with the employment that will help the people to develop the quality of life through their purchasing power. The taxes generated by the local government will help to develop the community of Palian.

MARKET STUDY

Product Description The main product of the proposed project is the Haya variety of cabbage. It has a flat, compact and greener head compared to other variety. This vegetable is consumed cooked, boiled, steamed, stir fried or fresh as salad and considered as an important part of a well-balance diet since it is a low calorie food. The Haya variety of cabbage has characteristics of homogeneity with respect to its appearance and highly perishable in its nature.

Demand In South Cotabato, there is a total average historical demand of 1,602,648 kilograms of cabbage for the year 2005-2010. As shown in table 2, historical demand of cabbage in South Cotabato has an increasing trend. Likewise, table 3 shows that the projected demand is also increasing.

Table 2 Historical Demand of Cabbage in South Cotabato. 2005-2010 Year Population Per Capita Consumption(kg) Historical Demand(kg)

2005

1,269,806

1.144

1,452,658

2006

1,313,521

1.144

1,502,668

20007

1,357,196

1.144

1,552,632

2008

1,400,868

1.144

1,602,593

2009

1,444,662

1.144

1,652,693

2010

1,488,334

1.144

1,702,654

Sources: National Statistics Office General Santos City and Bureau of Agricultural Statistics Koronadal City *Average Historical Demand 1,577,649 Kg

Table 3 Projected Demand of Cabbage in South Cotabato 2011-2016 Year Population Per Capita Consumption(kg) Projected Demand(kg)

2011

1,532,037

1.144

1,752,650

2012

1,575,740

1.144

1,802,647

2013

1,619,443

1.144

1,852,643

2014

1,663,146

1.144

1,902,639

2015

1,706,849

1.144

1,952,635

2016

1,750,570

1.144

2,002,652

*Projected Demand is computed by multiplying projected population with per capita consumption *Average Projected Demand 1,877,651 kg.

Supply The major producers of cabbage in South Cotabato is said to be in Tampakan and Tupi. The total number of hectarage is shown in table 4.

Table 4 Production Area of Cabbage Year 2006 2007 2008 2009 2010 Number of Hectares 32 35 39 48 50.55

*Source: Bureau of Agricultural Statistics, Koronadal City

Table 5 shows that the historical supply is increasing because of the increasing production area of cabbage in South Cotabato.

Table 5 Historical Supply of Cabbage in South Cotabato. 2005-2010

YEAR 2005 2006 2007 2008 2009 2010

Historical Supply (Kg) 181,990 216,300 249,500 263,740 335,340 355,540

*Source: Bureau of Agricultural Statistics Koronadal City. *Average Historical Supply 267,068 Kg.

10

Table 6 shows the increasing projected supply of cabbage. The projected supply is computed using Arithmetic Straight-line method. Table 6 Projected Supply of Cabbage in South Cotabato. 2011-2016

YEAR 2011 2012 2013 2014 2015 2016

Projected Supply (Kg) 390,350 425,160 459,970 494,780 529,590 564,400

*Average Projected Supply = 477,375 Kg

Demand and Supply Analysis Table 7 shows that there is an increasing unsatisfied demand except from 2009 because of the high supply of cabbage in the said year. This is due to the additional 9 hectares of the production area from year 2008-2009. On the other hand, in Table 8, projected unsatisfied demand for cabbage is likewise increasing.

11

Table 7 Historical Unsatisfied Demand for Cabbage. 2011-2016

YEAR 2005

Historical Demand (kg) 1,452,658

Historical Supply (Kg) 181,990

Historical Unsatisfied Demand (Kg) 1,271,168

2006

1,502,668

216,300

1,286,368

2007

1,552,632

249,500

1,303,132

2008

1,602,593

263,740

1,338,853

2009

1,652,693

335,340

1,317,353

2010

1,702,654

355,540

1,347,114

*Unsatisfied demand was derived from historical demand minus historical supply.

12

Table 8 Projected Unsatisfied Demand for Cabbage 2011-2016

YEAR

Projected Demand (Kg) 1,752,651

Projected Supply (kg) 390,350

Projected Unsatisfied Demand (Kg) 1,362,301

2011

2012

1,802,648

425,160

1,377,488

2013

1,852,645

459,970

1,392,675

2014

1,902,642

494,780

1,407,862

2015

1,952,639

529,590

1,423,049

2016

2,002,652

564,900

1,437,752

*Projected Unsatisfied demand was derived from projected demand minus projected supply.

Price Study The price of cabbage is affected by the availability of the product in the market. As shown in the table, the price is fluctuating because of the large supply of the product as of 2010 from the near provinces like North Cotabato and Sultan Kudarat.

13

Table 9 Historical Farm Gate Price of Cabbage

YEAR 2005 2006 2007 2008 2009 2010

Historical Price 23.5 13.63 15.34 19.1 22.77 13.59

*Source: Bureau of Agricultural Statistics Koronadal City.

Table 10 Projected Price of Cabbage (Farm gate price per kilo)

YEAR 2011 2012 2013 2014 2015 2016

Projected Price 18.04 19.12 20.06 22.48 24.76 27.44

*Derived using the Statistical Parabolic Method

14

Factors Affecting the Market The market of cabbage is very much affected by several factors such as bulkiness of the product wherein volume is greater relative to the price, highly perishable in nature which decreases the physical characteristics of the product, aside from these, transporting the product to the market is difficult because of poor road condition and existence of competitors which will be interested in cabbage production upon knowing its profitability. Other factors such as natural calamities, climate and weather conditions also affect the supply of the product.

Marketing Program Cabbage heads will be disposed on a per kilo basis. It will be sold on cash to cash basis after it will be harvested. Wholesalers will go to the production area to haul the cabbage .There will be five buyers and they are responsible for the transportation expenses. Disposal of the cabbage will be four times in every cropping with 20%, 50%, 20% and 10%volume of disposal with five days interval. Computation of production yield would be 70-30 wherein 30% serves as the leaf cover of the cabbage head and is deducted to the overall weight of the product. The computation is based on the prevailing practice by the farmer of the locality of Tupi. Aside from this, there will be a 10 % rejects. The volume of disposal per cropping is shown in the table 11 and 12, respectively.

15

Table 11 Volume of Disposal (Dry Season) Time Period 1st Harvest 2nd Harvest 3rd Harvest 4th Harvest Total Less: Leaf cover Reject Mortality rate 30% 10% 5% Volume of Disposal 20% 50% 20% 10% Volume of Production(kg) 6153.846 15384.615 6153.846 3076.23 30769.23

16923.08

Table 12 Volume of Disposal (Wet Season) Time Period 1st Harvest 2nd Harvest 3rd Harvest 4th Harvest Total Less: Leaf cover Reject Mortality rate 30% 10% 5% Volume of Disposal 20% 50% 20% 10% Volume of Production(kg) 5,714.284 14,285.71 5,714.284 2,857.142 28571.42

15714.28

16

Figure1 Marketing Channel

CJC Cabbage Production

Wholesalers

17

TECHNICAL STUDY Project Location The proposed project will be located in Barangay, Palian Tupi, South Cotabato with a total land area of 10,625 sqm. The area is accessible since it is situated 300 meters away from the national highway. The area has a ph of 6.0, loam soil with cool moist weather condition which is suitable for cabbage production. (See Exhibit 1).

Farm Layout The total production area is 9,375 sqm. and additional 125 x 10 sqm area for the storage and seedbed.

The Product The proposed project will make use of Haya variety of Cabbage. It has flat, compact and greener head compare to other varieties. The Haya variety belongs to Early group which mature in about 45 days. Since it is compact cabbage it will be easy to market at a fair price. The said variety is suitable to the climatic and agronomic condition of Barangay Palian,Tupi South Cotabato.

18

19

20

Project Size and Yield The population density per hectare is 28,571.42 plants during wet and 30,769.23 plants during dry season. Each plant will produce an average of 665 g / head during wet season and 635 g during dry season. Hence, the production yield would be 19,000 kilograms during wet season and 19,538.46 during dry season. Mortality rate will be 5% every cropping.

21

Schedule 1 Summary of Production Schedule Year 1 year (1st cropping) Period Jan 1-30 Jan 31- Feb. 25 Schedule Seed bed preparation Seedling production Volume (%) Kg / Harvest

Feb. 26 Feb. 27- April 26 April 17 April 22 April 27 May 3 May 3-10 May 10-17 May 18- Aug 24

Transplanting Growing period-maturity of the head 1st Harvesting 2nd Harvesting 3rd Harvesting Last Harvesting Rest (1 week) Preparation (1 week) Peanut production 20 50 20 10 6153.846 15384.615 6153.846 3076.23

August 25-Set 1 Sept 1-7 2nd Cropping Sept 8-9 Sept 10-Oct 10 Oct 11 Oct 16 Oct 21 Oct 11-Nov 26 Oct 16- Nov 31

Vacation/rest(3 weeks) Preparation for next production Seed bed preparation Seedling

Transplanting

Maturity period

22

Oct 21- Dec 5 Dec 6 Dec 11 Dec 16 Dec 21 Dec 21 - 30 Year 2 year (1st cropping) Period Jan 1-30 Jan 31- Feb. 25 1st Harvesting 2nd Harvesting 3rd Harvesting Last Harvesting Year end Vacation Schedule Seed bed preparation Seedling production Volume (%) 20 50 20 10 5,714.284 14,285.71 5,714.284 2,857.142

Feb. 26 Feb. 27- April 26

Transplanting Growing period-maturity of the head 1st Harvesting 2nd Harvesting 3rd Harvesting Last Harvesting Rest (1 week) Preparation (1 week) Peanut production 20 50 20 10 6153.846 15384.615 6153.846 3076.23

April 17 April 22 April 27 May 3 May 3-10 May 10-17 May 18- Aug 24

August 25-Set 1 Sept 1-7 2nd Cropping Sept 8-9 Sept 10-Oct

Vacation/rest(3 weeks) Preparation for next production Seed bed preparation Seedling

23

10 Oct 11 Oct 16 Oct 21 Oct 11-Nov 26 Oct 16- Nov 31 Oct 21- Dec 5 Dec 6 Dec 11 Dec 16 Dec 21 Dec 21 - 30 Year 3 year (1st cropping) Period Jan 1-30 Jan 31- Feb. 25

Transplanting

Maturity period 1st Harvesting 2nd Harvesting 3rd Harvesting Last Harvesting Year end Vacation Schedule Seed bed preparation Seedling production Volume (%) 20 50 20 10 5,714.284 14,285.71 5,714.284 2,857.142

Feb. 26 Feb. 27- April 26 April 17 April 22 April 27 May 3 May 3-10 May 10-17 May 18- Aug 24

Transplanting Growing period-maturity of the head 1st Harvesting 2nd Harvesting 3rd Harvesting Last Harvesting Rest (1 week) Preparation (1 week) Peanut production Vacation/rest(3 weeks) 20 50 20 10 6153.846 15384.615 6153.846 3076.23

24

August 25-Set 1 Sept 1-7 2nd Cropping Sept 8-9 Sept 10-Oct 10 Oct 11 Oct 16 Oct 21 Oct 11-Nov 26 Oct 16- Nov 31 Oct 21- Dec 5 Dec 6 Dec 11 Dec 16 Dec 21 Dec 21 - 30 Year 4 year (1st cropping) Period Jan 1-30 Jan 31- Feb. 25 Preparation for next production Seed bed preparation Seedling

Transplanting

Maturity period 1st Harvesting 2nd Harvesting 3rd Harvesting Last Harvesting Year end Vacation Schedule Seed bed preparation Seedling production Volume (%) 5,714.284 14,285.71 5,714.284 2,857.142

20 50 20 10

Feb. 26 Feb. 27- April 26 April 17 April 22 April 27 May 3 May 3-10

Transplanting Growing period-maturity of the head 1st Harvesting 2nd Harvesting 3rd Harvesting Last Harvesting Rest (1 week) 20 50 20 10 6153.846 15384.615 6153.846 3076.23

25

May 10-17 May 18- Aug 24

Preparation (1 week) Peanut production

August 25-Set 1 Sept 1-7 2nd Cropping Sept 8-9 Sept 10-Oct 10 Oct 11 Oct 16 Oct 21 Oct 11-Nov 26 Oct 16- Nov 31 Oct 21- Dec 5 Dec 6 Dec 11 Dec 16 Dec 21 Dec 21 - 30 Year 5 year (1st cropping) Period Jan 1-30 Jan 31- Feb. 25

Vacation/rest(3 weeks) Preparation for next production Seed bed preparation Seedling

Transplanting

Maturity period 1st Harvesting 2nd Harvesting 3rd Harvesting Last Harvesting Year end Vacation Schedule Seed bed preparation Seedling production Volume (%) 20 50 20 10 5,714.284 14,285.71 5,714.284 2,857.142

Feb. 26 Feb. 27- April

Transplanting Growing period-maturity

26

26 April 17 April 22 April 27 May 3 May 3-10 May 10-17 May 18- Aug 24

of the head 1st Harvesting 2nd Harvesting 3rd Harvesting Last Harvesting Rest (1 week) Preparation (1 week) Peanut production 20 50 20 10 6153.846 15384.615 6153.846 3076.23

August 25-Set 1 Sept 1-7 2nd Cropping Sept 8-9 Sept 10-Oct 10 Oct 11 Oct 16 Oct 21 Oct 11-Nov 26 Oct 16- Nov 31 Oct 21- Dec 5 Dec 6 Dec 11 Dec 16 Dec 21 Dec 21 - 30

Vacation/rest(3 weeks) Preparation for next production Seed bed preparation Seedling

Transplanting

Maturity period

1st Harvesting 2nd Harvesting 3rd Harvesting Last Harvesting Year end Vacation

20 50 20 10

5,714.284 14,285.71 5,714.284 2,857.142

27

Cultural Management Practices

A. Seedbed Preparation A seedbed will be prepared measuring 1 meter wide, raise 30 cm high and 50 meters long. Soil must be well-pulverized. Incorporate chicken manure at the rate of 90 kg. 30 days before seeding. To control insect such as ants and mole crickets, drench the bed with insecticide solution (7ml Malathion / 16 liters of water) prior to sowing.

Construction of Bed Shelter

A temporary bed shelter will be constructed at least meter high to protect the seedling from extreme heat and from heavy rain. The bed measures 1 meter wide raise 20 cm high and 50 meters long. To protect the seedling from animals like chicken, use a net cover surrounding each side of the bed shelter. Provide cellophane as shade barrier. Expose to full sunlight 1 week before transplanting. This method called hardened off which prepares seedlings to adapt outside environment. Transplant seedlings four weeks from sowing.

28

Table 13 Construction of Bed Shelter Materials Cellophane Net Nail Bamboo pole Quantity 50 meters 53 meters kg (#1) 3 pcs ( 3 meter )

Sowing of Seed Using the selected variety of cabbage, line sow 280 grams of seed in furrows across the bed 7-10 cm apart. Sow thinly to prevent dampingoff and water regularly.

B. Transplanting and Growing

Land Preparation The area must be free from weeds and must be well-pulverized before transplanting. Plow the area twice using tractor and harrow it once with carabao. Furrowing will be done after to serves as a guide in transplanting.

29

For the next cropping, plowing will not be done. The area will only be harrowed two times to remove the weeds. After which, it will be furrowed to serve as a guide during transplanting.

Transplanting When the seedling has at least 4 to 5 leaves (30 days after seeding) water the seedbed and gently uproot the seedlings and transplant them to the field. Seedlings are transplanted at a distance 60 x 60 cm away during wet season and 55 x 55 cm during the dry season. After transplanting, apply 10 grams of 14-14-14/ plant for basal application 3 days after transplanting.

30

Fertilizer Application Side-dress with Urea (46-0-0) at the rate of 10 grams/ plant, 3 weeks after transplanting. Repeat side-dressing at 35 days after transplanting with 10 grams/ plant with 2:1 mixture of 46-0-0 and 0-0-60. For every 2 kg. of 46-0-0, mix with 1 kg. of 0-0-60 of fertilizer will do.

31

Table 14 Fertilizer Application


Rate of Time of Application Fertilizer Application Seedbed Preparation: Mix it to the soil before ( 1 month before seedling stage ) Seedling Stage Transplanting Stage ( Day 3) 14-14-14 285.7kg/ha Basal Application Chicken Manure 90 kgs. sowing Method of Application

(Day 21)

14-14-14

285.7kg/ha

Side-dressing

46-0-0 (Day 35) 0-0-60 (mixed) 428.57kg/ha Side-dressing

32

Water management Dry Season: A. Seedbed Irrigation is done with the use of sprinkler. Watering should be done regularly. B. Growing water application will be done in order to provide moisture needed by the plant. After transplanting, irrigate the area twice a month especially during dry season. Furrow irrigation will be used through the aid of water pump.

Wet Season: Water the bed and area during dry season. Table 15 Water Equipment Item Water pump 3.5 hp Suction hose (2inch in 7 meters diameter) Duct hose Hose clip 2 Total 125 meters 2 55 22 6,875 44 17,023 35 1104 Quantity 1 Price 9000 Amount 9,000

33

Weeding

Weeding will be done manually using guna which will be provided by the seasonal farm worker. It will be done on the 20th and 34th day before the fertilizer application.

Pest and Diseases Management To combat the build-up of pest and diseases, the project will follow a cropping pattern to plant cabbage, then peanut, then cabbage.

Pest Diamond Back Moth (Plutella xylostella L.) Nature of damage: The young light green larvae first feed on the leaves as miners, then progressively feed by making small holes. Naturally attack during dry season according to one of the farmer. Control: Spray with 20-25ml of Decis-R mixed with 16 liters of water every 2 weeks as the case may require.

34

Common Cutworm (Spodoptera litura) Nature of damage: Feed on young and mature leaves of the host making large holes on leaf blades the adult is dark brown with white streaks on the wings and is generally active at night. The eggs are laid on the leaves. This pest is prevalent during vegetative stage. Control: Spray 3 tbsp of Kamandag (insecticide) with 16 liters of water every 2 weeks as the case may require.

Cabbage Aphids Nature of damage: Soft-bodied insects that cluster on young leaves and lower side of old leaves. Control: Remove the affected plant parts and burn. Spray with 2 grams of Actara/16 liter of water every 2 weeks as the case may require.

Diseases Head Rot Nature of damage: Caused by fungus present in the soil. Attack the plant before early head formation and maturity. Infected plants start to decay at the base of non-wrapper leaves which become wilted and pallid. The plant turns brown then black and decays.

35

Control: Remove the affected plants/ plant parts and bury or burn. Avoid soiling of cabbage leaves during cultivation. Irrigate the field regularly to keep the soil temperature low. Apply fungicide at the base of the plant 15 ml of Dithane in 16 liters of water every 2 weeks as the case may require.

Alternalia Blight Nature of damage: Caused by fungus. The infected plants show spot of small, circular, yellow areas which later produce ridges with black sooty color. Usually attack during wet season. Control: Spray Maneb at 60ml per 16 liters of water every 2 weeks as the case may require.

Table 16 Pest and Diseases Pest Symptoms Causes small holes in the leaves and weaves cocoons about 1/3 inch Diamond Black Moth long on the leaves. Naturally attack during dry season Common cutworm Making large holes on Use Kamandag(15ml16 liters of water) Use Decis-r (20-25 ml /16 Prevention and Control

36

the leaf blades. This pest is prevalent during vegetative stage. Causes curled yellows

liters of water)

Use Actara (2g/16 liters of Cabbage Aphids leaves and exudes a water) honeydew substance. Diseases Infected plants start to decay at the base of the non-wrapper tissues Headrot which become wilted and pallid. The plants turn brown and then black. Infected plants show spot of small circular, yellow areas which later Use Maneb (60ml/16 liters Alternalia Blight produces ridges with of water) black sooty color. Usually attacks during Wet Season. of water) Use Dithane (15ml16 liters

37

Harvesting

First harvesting is done forty five (45) days after transplanting. The cabbage is ready for harvesting if the heads are firm and compact. You can identify this by pressing the head and when there is no depression, and then it is compact and ready to be harvested. Harvesting is done every 5 days for at least 4 times. Harvesting will be done manually. Using a long knife, separate the head from its body the cabbage head will be put directly to the sacks for packing.

Packing

Heads of cabbage will be packed into the sack with its two-three big wrapper leaves which serve as its protection. Each sack contains an average of 40 pieces of cabbage head with 27 kg/ sack in wet season and 25 kg/ sack in dry season. The cabbage will be disposed right after packing.

38

Table 17 Farm Tools and Equipment Item Sprayer(knapsack) Bolo Shovel Hammer Watering can 2 pcs (sprinkler) Total cost 7,310 250 750 Quantity 2 pcs. 4 pcs. 2 pcs. 2 pcs. Price per unit 2200 250 480 150 Amount 4,400 1,000 860 300

Labor Requirements

Laborers will be paid based on the prevailing wage rate in the locality. Two regular laborers will be hired in the project with an amount of 150 pesos per day. They will be paid on a monthly basis. Moreover, additional laborers will be hired during the harvesting time and as the need arises and will be paid on a daily basis.

39

Table 18 Labor Requirement


Activity Seedbed Preparation (Land preparation)Harrowing Number of MD/MAD 2 MD 1 MAD Number of Days 2 1

(Land preparation)Furrowing Transplanting Basal application of fertilizer 1st Side-dress application Last Side-dress application 1st Harvesting 2nd Harvesting 3rd Harvesting 4th Harvesting Weeding Irrigation(Dry season)

2 MAD 25 MD 3MD 3MD 4MD 3MD 6MD 3MD 2MD 2MD 4MD

1 1 1 1 1 1 1 1 1 2 3

40

Table 19 Rental Requirement


Activity (Land 1 unit tractor Preparation)Plowing 1 Rental/MAD Number of Days

Sources of Raw Materials

Seeds and other raw material such as fertilizers,pesticides,insecticides, fungicides,farm tools and equipment will be bought from the local market of Koronadal.

Waste Management

The leaves and reject heads from the production operation and other biodegradable wastes will be placed in the field to decompose and use by the plant. On the other hand, non biodegradable wastes will be put in a safe place and will be buried by the worker.

41 Table 20 Construction Materials of the Storage House Materials Roofing: #26x12 com .G.I sheets #26x 10 plain G.I sheets 1 umbrella nails Trusses: 1 x 2 x 12 2 x 3 x 10 2x 4 x 10 2 x 6 x 12 # 4 common nails # 3 common nails Door and Window: 2 x 4 x 10 2 x 3 x 10 9mm steel bars Plywood # 1 common nails # 4 common nails Door knob Wall: Plywood Wash sand 9mm steel bars Hollow blocks Portland Cement Flooring: Portland cement 9mm steel bars Washed sand Foundation Portland cement 10mm steel bars Finishing Portland cement Quantity 10 sheets 2 rage roll 3 kg 8 pieces 14 pieces 8 pieces 5 pieces 2 kg. 2 kg. 5 pieces 2 pieces 7 pieces 2 pieces 1kg. 1 kg 1 set 5 pieces 1 cu 15 700 pieces 15 bags 10 bags 12 pieces 1 cu. 14 bags 15 pieces 14 bags Price/ Unit 292/pc. 200/pc. 53/kg. 96/ pc. 75/ pc. 99/ pc. 180/pc. 49/kg. 49/kg. 99/pc. 75/pc. 230/length 110/pc. 35/kg. 49/kg. 880 110 100 230/length 6/pc 218/bags 218 230/length 100/cum 218/bag 230/length 218/bag Total Cost 2,920 400 159 768 1,050 792 900 98 98 495 150 1,610 220 35 49 880 550 100 3,450 4,200 3,270 2,180 2,760 100 3,052 3,450 3,052

42

Lightning: Bulb Bulb socket #12 American wire gauze switch Total bill for stockroom Labor cost Pakyawan basis Total cost

2 2 10m 2

45/pc 25/pc 26/m 40

90 50 260 80

8,000 45,268

Table 21 Electric Installation and Materials Materials: Metering Pole Safety Breaker 15 amperes (Plug in) Wires: # 6 American wire gauze # 8 American wire gauze #12 American wire gauze Total cost of materials SOCOTECO for the installation and metering device Labor cost Total Cost of Installation and Materials Quantity 1 set assembled 1 15m 15m 25m Price Per Unit 4000 Amount 4,000 290 19/ m 59/ m 26/ m 285 885 650 6,110 3,000 250 9,360

43

44

45

46

47

48

49

FINANCIAL STUDY Major Assumptions 1. The project will cover an area of 10,625 sqm owned by Mr. Macaraeg. 2. Seed will be purchased from an authorized agricultural supplier. The project will use up of 12 can of Haya seed with a price of P 530 per can and with 2 % increase per year. 3. The owner will provide for the needed capital from his own account amounting to 183,232.50 pesos. 4. There will be two cropping seasons for cabbage in one year. There will be a peanut production between the 2 cropping seasons to prevent insect infestation. 5. Harvesting will be done 45 days after transplanting. The project yield is 19,000 kg during wet season and 19,538.46 kg during dry season. 6. The product will be marketed to the wholesaler at farm gate price. The wholesaler will be the one to get the product at the farm. Reject is estimated to be 10%of the total yield with a 5% mortality rate. 7. The stockroom is estimated to be P 45,268.00. For the repairs and

maintenance there will be an allocation of 1500 pesos with 2 % increase annually. 8. Salvage value of fixed assets will be 10 % of the actual costs.

50

9. The allocated money for contingency allowance is 5000 pesos with 2 % increase annually. 10. There will be a 2 % increase in the labor cost for different activities annually. 11. Fertilizer and chemical will be purchased from various agriculture suppliers in Koronadal City. There will be a 2% increase per year in the prices of fertilizer and chemicals. 12. Transportation expenses for production inputs is assumed to be 1,300 pesos per cropping with 2 % increase annually, 13. Permits and licenses are assumed to be 3,500 pesos per year with 2% increase annually. 14. The cost for plowing and harrowing will increase 2 % annually. 15. The owner will purchase tools and equipment for the project. 16. Computation of production is 70-30 wherein 30% serves as the leaf cover of the cabbage head and is deducted to the overall weight of the product. 17. Minimum wages rate would be 150 pesos per day. 18. Tax would be 30% of income of operation. 19. There will be an estimated cost of 990 pesos for fuel to be use in irrigation.

51

20. The owner will withdraw money which is 40%of the net income from 1 st year to 6th year of the operation which will be used in investing to other business and personal purposes. 21. The owner will rent a land for the production area amounting to 30,000 pesos with 2% increase annually.

52

Total Project Cost Fixed cost Stock room Water equipment Knapsack Sprayer Knife Shovel Sprinkler (watering can) Electric Installation and Materials Hammer Total Fixed Cost Variable cost Temporary bed shelter Seeds Fertilizer Pesticides Sacks Land Preparation Transportation Expenses Repair and maintenance Permits and licenses Contingency allowances Owner manager Salary Labor wages Utility Expenses Land Rent Fuel Total Variable Cost TOTAL PROJECTED COST 3,081.00 3,180.00 14,070.00 814.50 1,386.00 2,600.00 650.00 750.00 1,750.00 2,500.00 36,000.00 24,700.00 1,000.00 15,000.00 990.00 108,471.50 187,432.50 45,268.00 17,023.00 4,400.00 1,000.00 860.00 750.00 9,360.00 300.00 78,961.00

53

Schedule 2 Projected Cost of Seed (50 grams in can) with 2 % increase annually Year 1 2 3 4 5 6 Quantity 12 12 12 12 12 12 Unit price 530 540.6 551.41 562.44 573.69 585.16 Total cost 6,360 6,487.2 6,616.92 6,749.28 6,884.28 7,027.2

Table 22 Labor Cost for Seed-bed Preparation and Sowing of Seed with 2% increase annually. Total cost Year No. of cropping MD No. of Days Wages (Php) 1 2 3 4 5 6 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 150 153 156.06 159.18 162.36 165.60 1200 1224 1248.48 1273.44 1298.90 1324.87

54

Table 23 Cost for Construction of Temporary Seed-bed Shelter with 2% increase annually. Total cost Year No. of cropping Total cost (Php) 1 2 3 4 5 6 2 2 2 2 2 2 3081 3142.62 3205.47 3269.58 3334.97 3401.67 6162 6285.24 6410.94 6539.16 6669.94 6803.34

Table 24 Rental Cost for Plowing with 2% increase annually Total cost Year No. of cropping Times Cost (Php) 1 2 3 4 5 6 1 1 1 1 1 1 2 2 2 2 2 2 1500 1530 1560.6 1591.81 1623.65 1656.12 3000 3060 31221.12 3183.62 3247.3 3312.24

55

Table 25 Labor Cost for Harrowing with 2% increase annually Total cost Year No. of cropping Times Cost (Php) 1 2 3 4 5 6 2 2 2 2 2 2 1 1 1 1 1 1 600 612 624.24 636.72 649.45 662.43 1200 1224 1248.48 1273.44 1298.90 1324.87

Table 26 Labor Cost for Furrowing with 2% increase annually Total cost Year No. of cropping Times Cost (Php) 1 2 3 4 5 6 2 2 2 2 2 2 2 2 2 2 2 2 250 255 260.1 265.30 270.60 276.01 1000 1020 1040.40 1061.20 1082.42 1104.06

56

Table 27 Cost for Electricity with 2% increase annually Total cost Year No. of cropping Cost (Php) 1 2 3 4 5 6 2 2 2 2 2 2 1000 1020 1040.40 1061.20 1082.42 1104.06 2000 2040 2080.80 2122.41 2164.85 2208.14

Table 28 Labor Cost for Transplanting with 2% increase annually Total cost Year No. of cropping MD for planting No. of Days Wages (Php) 1 2 3 4 5 6 2 2 2 2 2 2 25 25 25 25 25 25 1 1 1 1 1 1 150 153 156.06 159.18 162.36 165.60 7,500 7,650 7,803 7,959 8,118 8,280

57

Table 29 Labor Cost for First Basal Application of Fertilizer with 2% increase annually Total cost Year No. of cropping MD No. of Days Wages (Php) 1 2 3 4 5 6 2 2 2 2 2 2 3 3 3 3 3 3 1 1 1 1 1 1 150 153 156.06 159.18 162.36 165.60 900 12 624.24 636.72 649.45 662.43

Table 30 Labor Cost for 1st Side-dress Application of Fertilizer with 2% increase annually Total cost Year No. of cropping MD No. of Days Wages (Php) 1 2 3 4 5 6 2 2 2 2 2 2 3 3 3 3 3 3 1 1 1 1 1 1 150 153 156.06 159.18 162.36 165.60 900 918 936.36 955.08 974.18 993.66

58

Table 31 Labor Cost for Last Side-dress Application of Fertilizer with 2% increase annually Total cost Year No. of cropping MD No. of Days Wages (Php) 1 2 3 4 5 6 2 2 2 2 2 2 4 4 4 4 4 4 1 1 1 1 1 1 150 153 156.06 159.18 162.36 165.60 1200 1224 1248.48 1273.44 1298.88 1324.80

Table 32 Labor Cost for First Harvesting and Packing with 2% increase annually. Total cost Year No. of cropping MD for planting No. of Days Wages (Php) 1 2 3 4 5 6 2 2 2 2 2 2 3 3 3 3 3 3 1 1 1 1 1 1 150 153 156.06 159.18 162.36 165.60 900 918 936.36 955.08 974.18 993.66

59

Table 33 Labor Cost for Second Harvesting and Packing with 2% increase annually Year No. of cropping MD No. of days Wages Total cost (Php) 1 2 3 4 5 6 2 2 2 2 2 2 6 6 6 6 6 6 1 1 1 1 1 1 150 153 156.06 159.18 162.36 165.60 1800 1836 1872.72 1910.17 1948.37 1987.33

Table 34 Labor Cost for Third Harvesting and Packing with 2% increase annually Year No. of cropping MD No. of days Wages Total cost (Php) 1 2 3 4 5 6 2 2 2 2 2 2 3 3 3 3 3 3 1 1 1 1 1 1 150 153 156.06 159.18 162.36 165.60 900 918 936.36 955.08 974.18 993.66

60

Table 35 Labor Cost for Fourth Harvesting and Packing with 2% increase annually Year No. of cropping MD No. of days Wages Total cost (Php) 1 2 3 4 5 6 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 150 153 156.06 159.18 162.36 165.60 600 612 624.24 636.72 649.44 662.4

Table 36 Labor Cost for Weeding with 2% increase annually Year No. of cropping MD No. of days Wages Total cost (Php) 1 2 3 4 5 6 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 150 153 156.06 159.18 162.36 165.60 1200 1224 1248.48 1273.44 1298.88 1324.80

61

Table 37 Labor Cost for Irrigation with 2% increase annually Year Dry Season MD Days of work 1 2 3 4 5 6 1 1 1 1 1 1 4 4 4 4 4 4 3 3 3 3 3 3 No. of application 3 3 3 3 3 3 150 153 156.06 159.18 162.36 165.60 Wages Total cost (Php) 5400 5508 5637.6 5730.48 5844.96 5961.6

62

Table 38 Total Labor Cost


No. Of MD/MAD cropping Seedbed 2 2 Preparation 2 2 2 1 2 25 Harrowing Furrowing Transplanting 1st Basal 2 3 Application 1st Side-dress 2 3 Application Last Side-dress 2 4 Application 2 2 2 2 2 1 Total cost 3 6 3 2 2 4 1st Harvesting 2nd Harvesting 3rd Harvesting 4th Harvesting Weeding Irrigation 3 application (Dry season) 1 1 1 1 2 3 150 150 150 150 150 150 900 1800 900 600 1200 5400 24,700 1 150 1200 1 150 900 1 150 900 1 1 1 600 250 150 1200 1000 7500 2 150 1200 Activity No. Of days Wages Total cost

63

Table 39 Total Rental Cost


No.of MAD/Rent cropping 1 unit 1 Tractor Total Cost Preparation)Plowing 3000 (Land 1 2 3000 Activity Days No.of Times Total Cost

Schedule 3 Projected Cost of Labor Wages with 2% increase annually. Year 1 2 3 4 5 6 Total cost 49400 50388 51395.76 52423.68 53472.16 54741.6

64

Table 40 Cost of Inorganic Fertilizer


Total amount of Kind of Fertilizer Rate of Fertilizer(no. of Application bags) Complete fertilizer (14-14-14) 285.71 Urea (46-0-0) kg/Hectare Muriate of 142.85kg/Hectare Potash(0-0-60) Total Cost 26790 3 bags 1350 4050 6 bags 571.4 kg/Hectare 12 bags Cost per Bag Total Cost

1240

14880

1310

7860

Schedule 4 Projected Cost of Inorganic Fertilizer with 2% increase annually


Year 1 2 3 4 5 6 Total cost

53580 54651.6 55744.64 56859.54 57996.74 59156.68

65

Table 41 Cost of Organic Fertilizer


Total amount of Kind of Fertilizer Rate of Fertilizer(no. of Application bags) Chicken 90 kg manure Total Cost 1350 1.8 750 1350 Cost per Bag Total Cost

Schedule 5 Projected Cost of Organic Fertilizer with 2% increase annually Year 1 2 3 4 5 6 Total cost 2700 2754 2809.08 2865.26 2922.56 2981

66

Schedule 6 Total Projected Cost of Fertilizer (Organic and Inorganic)


Year 1 2 3 4 5 6 Total cost

28140 28702.8 29276.86 29862.4 30459.65 31068.84

Table 42 Cost of Pesticide


Rate of Pesticide Application Knapsack/Hectare interval No. of Spraying Unit price cost Total

60ml/ Maneb Knapsack 2 grams/ Actara Knapsack Dithane 15ml/ 10 2weeks 10 2weeks grams 480/liter 37.5 125/10grams 250 10 2weeks 300/liter 180

67

Knapsack 25ml/ Decis-r Knapsack 15ml/ Kamandag Knapsack Total Cost 794.2 10 2weeks 245/250 ml 147 10 2weeks 800/500ml 200

Schedule 7 Projected Cost of Pesticide with 2%increase annually Year 1 2 3 4 5 6 Total cost 1588.4 1620.17 1652.57 1685.62 1719.33 1753.72

68

Table 43 Cost of Permit and Licenses with 2 % increase annually Year 1 2 3 4 5 6 Total cost 3500 3570 3641.40 3714.22 3788.50 3864.27

Table 44 Cost of Repair and Maintenance with 2% increase annually Year 1 2 3 4 5 6 No. of cropping 2 2 2 2 2 2 Total cost 1500 1530 1560.60 1591.81 1623.64 1656.11

69

Schedule 8 Projected Cost of Contingency Allowance with 2 % increase annually Year 1 2 3 4 5 6 Total cost 5000 5100 5202 5306.04 5412.16 5520.4

Schedule 9 Projected Cost of Owner-Manager Salary with 2% increase annually Year Monthly salary (Php) 1 2 3 4 5 6 6000 6300 6615 6045.75 7293.03 7657.68 12 12 12 12 12 12 No. of months Total cost (Php) 72000 73440 74908.80 76406.97 77935.10 79493.8

70

Schedule 10 Total Projected Cost of Sack with 2% increase annually Year 1 2 3 4 5 6 No. of sacks 838 838 838 838 838 838 Unit price 3 3.09 3.18 3.27 3.37 3.54 Total cost 2514 2564.28 2615.56 2667.87 2721.22 2775.64

Table 45 Land Rent with 2% increase annually Rent per Year No. of cropping Cropping 1 2 3 4 5 6 2 2 2 2 2 2 15000 15300 15606 15918.12 16236.48 16561.21 30000 30600 31212 31836.24 32472.96 33122.42 Total cost

71

Schedule 11 Projected Cost of Annual Depreciation Salvage Items Value value Stock room Water equipment Knife Shovel Knapsack Sprayer Electric Installation Sprinkler(watering 750 can) Hammer Total annual 6333.8 depreciation 300 30 10 30 75 5 150 45233 17023 1000 860 4400 9360 4523.3 1702.3 100 86 440 936 15 10 5 5 10 15 Estimated life depreciation 3015.5 1702.3 200 172 440 624 Annual

72

Table 46 Sales Summary

Volume of Year Production(kg)* 1(2010) 2(2011) 3(2012) 4(2013) 5(2014) 6(2015) 32637.36 32637.36 32637.36 32637.36 32637.36 32637.36

Price/kg(farm Total Sales (Php) gate) 18.04 19.12 20.06 22.48 24.76 27.44 588777.97 624026.32 654705.44 733687.85 801415.83 888160.36

73

74

75

76

Financial Analysis

Financial analysis is the assessment of the commercial profitability of the project and its capacity to meet its obligation.

Payback Period Payback Period is the length of time in which the project can recover its initial investment.
Year 1 2 3 4 5 6 Net Income Before Tax

366749.17 397683.62 423962.56 498456.79 561606.83 643681.85

Analysis

Payback period is the length of time in which the project can recover its initial investment. The initial cost of the project is 183,232.50 pesos .Based on the annual income of the project; the payback period will be less than 1 year only after the operation.

77

Return on Owners Investment Return on Owners Investment is use to determine the percentage return of income over the owners investment. Net Income before Year tax 1 2 3 4 5 6 366749.17 397683.62 423962.56 498456.79 561606.83 643681.85 Average ROI 222028.8 226342.70 230742.88 235225.06 239809 244478.51 165.18 175.69 183.74 211.91 234.19 263.29 205.67 Total Expenses ROI (%)

ROI=Net Income before Tax/Total Expenses x 100 Analysis:

The return on investment from first year to sixth year of operation is 165.18%, 175.69%, 183.74%, 211.91%, 234.19% and 263.29% respectively. This means that for every peso invested, there is an average net return of 2 peso s and1 centavo. Hence, the business is profitable.

78

Net Present value The present value of a future income. NPV = Annual Income 1 / (1 + I ) +Annual Income2 / (1 + I )Annual Income6/ / (1 + I). - C Annual Income Year Annual Income ( 1 + i ) = 12 % (1 + i) 1 2 3 4 5 6 366749.17 397683.62 423962.56 498456.79 561606.83 643681.85 1.12 1.25 1.40 1.57 1.76 1.97 410759.17 497104.53 593547.58 782577.16 988428.02 1268053.25

NPV = P 4540469.71- 183232.50 =4357237.21 Analysis: Net Present Value is higher than the investment. Therefore, the proposed project is worth investing. Internal Rate of Return Analysis: The Internal Rate of Return is 210%.

79

ORGANIZATION AND MANAGEMENT The proposed project will be organized as a sole proprietorship form of business organization and will be owned by Mr.Macaraeg. He will be responsible for motivating, controlling and directing his laborers toward the attainment of the project goals. He will be responsible for the procurement of the needed inputs and other requirements for the successful operation of the project. He will be the one who will negotiate with the prospective buyers, look for alternative sources of raw materials and take care of the financial needs of the project. The owner manager has a direct supervision of everything in the production including the procurement of the labor requirement. The laborers needed for the operations of cabbage production will be hired from the unemployed individuals near the production area. The direct personnel needed in the proposed project are (2) two regular workers and seasonal workers. They will do different functions. Their responsibilities are as follows: The regular workers are responsible for the regular monitoring of production operation. The regular functions are spraying of fertilizers and pesticides, watering of the cabbage and maintaining the whole area. The regular workers are responsible in all of the farming operations on the field with the help of seasonal farm workers as the need arises.

80

Figure 2 ORGANIZATIONAL CHART

81

SOCIO-ECONOMIC STUDY

The proposed project CJC CABBAGE PRODUCTION is expected to contribute positively, not only to the government but to the society as well .First, there will be an increase in the owners income as well as the laborers who will be hired in this project. Second, the government will be receiving taxes from this project, which means an increase in the Government revenue.With this result,it will help to uplift our economy as a whole.

82

CONCLUSION AND RECOMMENDATONS . The establishment of the said project in Palian, Tupi, South Cotabato will help to improve the economic condition of the community in Palian. The gathered data and the analysis of the authors presented that the cabbage project in Palian, Tupi will be feasible and profitable. The owner-manager must apply the cultural management practices in cabbage growing to have a good production which is same in this study. He must undergo other research and consultation for technical basis that will develop further the production of the cabbage.

83

REFERENCES

Bureau of Agricultural Statistics, Koronadal City

Bureau of Soils

Department of Agriculture (Tampakan)

National Statistics Office, General Santos City

Mr. Zaldy Aragay Cabbage Producer in Palian, Tupi, South Cotabato

Mr. Gilbert A. Manzano Electrician

Mr. Zandy Estrada Water Installation Estimates

http://www.google.com