RATIONALE

Shrimp paste or shrimp sauce, is a common ingredient used in Southeast

Asian and Southern Chinese cuisine. It is known as terasi (also spelled trassi,
terasie) in Indonesian, ngapi in Burmese, kapi in Thai, Khmer and Lao language,
belacan(also spelled belachan, blachang) in Malay, mm ruc, mm tp and mm
tm in Vietnamese (the name depends on the shrimp used),bagoong alamang (also
known as bagoong aramang) in Filipino, ginamos in Hiligaynon, haam ha/ha jeung in
Cantonese, and Chinese andhom ha/hae ko (Pee h-e-j: h-ko) in Min Nan Chinese.
It is made from fermented ground shrimp mixed with salt. Some versions are
in its wet form such as those in Vietnam, while other versions are sun-dried and
either cut into fist-sized rectangular blocks or sold in bulk. It is an essential
ingredient in many curries and sauces. Shrimp paste can be found in most meals in
Myanmar, Laos, Thailand, Malaysia, Singapore, Indonesia, Vietnam and the
Philippines. It is often an ingredient in dip for fish or vegetables.

OBJECTIVE
This project aims to promote shrimp paste processing in Region 12. This is
targeted to attract investors in venturing into such business and create more job
opportunities for the people in the region.

PROJECT DESCRIPTION

Bagoong alamang or "Ginamos" (in Western Visayas) is Filipino for shrimp

paste, made from minute shrimps or krill (alamang) and is commonly eaten as a
topping on green mangoes or used as a major cooking ingredient. Bagoong paste
varies in appearance, flavor, and spiciness depending on the type. Pink and salty
bagoong alamang is marketed as "fresh", and is essentially the shrimp-salt mixture
left to marinate for a few days. This bagoong is rarely used in this form, save as
topping for unripe mangoes. The paste is customarily sauteed with various
condiments, and its flavor can range from salty to spicy-sweet. The color of the
sauce will also vary with the cooking time and the ingredients used in sauteing,
such as: 60kg of fresh alamang; 40kg iodized coarse salt; and, 110L white vinegar.

Procedure includes the following: Wash fresh alamang twice with running water.
Remove any fish or seashells. Using a colander, drain for at least 3 hours. In a
stainless or glass bowl, put the alamang and sprinkle salt. Mix well. Cover with a
colander. Stand aside for 24 hours. If possible, put in direct sunlight but make sure
that flies would not penetrate the mixture. After a day, put the alamang in a wok or
kawali. Drizzle with vinegar. Do not mix at this point. Place over medium-high fire.
Bring to boil. Keep boiling for 2 minutes or until fragrant. Mix well. Reduce fire to low
and cook for 30 minutes or until all liquid evaporates. Stir every 10 minutes.
Remove from pan. Place in a glass container. Let it cool. Cover tightly. Put inside the
fridge for future use.

CURRENT MARKET TRENDS AND OPPORTUNITIES

Shrimp paste continues to be made by fishing families in coastal villages.

They sell it to vendors, middlemen or distributors who package it for resale to
consumers. Shrimp paste is often known for the region it comes from since
production techniques and quality vary from village to village. Some coastal regions
in Indonesia such as Bagansiapiapi in Riau, Indramayu and Cirebon in West Java,
and Sidoarjo in East Java; as well as villages such as Pulau Betong in Malaysia or Ma
Wan island in Hong Kong and in Lingayen Gulf, Pangasinan in the Philippines are
well known for producing very fine quality shrimp pastes, which are then used in
making salty dishes such as Pinakbet, Bicol Express and sometimes in fried rice.

Recipes using shrimp paste are numerous. Known as a condiment in many

Filipino foods, it is used in famous recipes such as: Binagoongang Baboy (Pork in
Shrimp Paste); Pinakbet or Pakbet; Binagoongang Manok; Kangkong with Bagoong;
Kare-kare; and, Manggang Hilaw with Bagoong alamang.

Shrimp paste is sold in different packages in the markets of General Santos

City. KCC Mall of Gensan displays the following brands: Golden Hands Kamayan
(Bagoong alamang) @P62.05/340g, and Genrev Best Cook (Ginisang Bagoong -
Sauteed Shrimp Paste) 2P65.00/260g. SM has Barrio Fiesta Bagoong, with its
original, spicy and sweet variants of shrimp paste priced at P76.00/250g. Robinsons
Mall displays Mothers Best Ginisang Bagoong (Sauteed shrimp paste)
@P65.00/250g.

FINANCIAL REQUIREMENTS

Assumptions:
- 1,200 kilos of Alamang are used in 1 month (60kilos/day)
- 40kg of salt a month (2 kg/day)
- 110L of vinegar a month (5.5L/day)
- 260g per bottle
- 8 hours of daily operation
- 4 workers with P200/day salary
-1 motorcycle driver with P200/day salary
- Selling price is P60.00/bottle
- 20 days of operation/month
-Deliveries are during Fridays (4x/month)
 ASSETS PRICE LIFE SPAN DEPRECIATION EXPENSE
(Php) (Php) MONTHLY
(Php)

Building 200,000.0 20 years 833.33

0

Motorcycle 80,000.00 10 years 666.67

5 Colanders 325.00 5 years 5.42

@65.00
each

5 Frying 1,780.00 5 years 29.67

Pans
@356.00
each

5 Stainless 2,175.00 5 years 36.35

steel bowls
@435.00
each

2 Gas Stove 1,840.00 5 years 30.67

@920.00
each

Total 201,840.0 1,602.11

0

Total Project Cost

Shrimp Paste Processing Amount (PhP)

Assets

Building 200,000.00

Motorcycle (with back storage) 80,000.00

5 Colanders @65.00 each 325.00

 5 Frying Pans @356.00 each 1,780.00

5 Stainless steel bowls 2,175.00

@435.00 each

2 Gas stove @920 each 1,840.00

Subtotal 286,120.00

Working Capital

Direct Materials P48,978.90

Direct Labor P16,000.00

Manufacturing overhead P5,163.1

Operating Expense P42,294.00

TOTAL PROJECT COST 396,983.00

*Land acquisition not included.

Projected Sales and Income

Shrimp Paste Processing

Particulars Amount (PhP)

Sales in 1 month

Plastic Container

260g (4,600 units @ P60.00 each) P 276,000.00

TOTAL SALES P 276,000.00

Less: Cost of Sales

Direct Materials (1 month)

Vinegar (110L @ P 77.99/L) P8,578.90

Salt (40 kg @ P20.00/kg) P800.00

Alamang (1200kg @ P33.00/kg) P39,600.00

Direct Labor
 4 workers ( P200.00/day) P16,000.00

Manufacturing Overhead

Electric bill P2000.00

Water bill P1500.00

2 LPG Tanks (831.55 each) P1,663.1

TOTAL COST OF SALES P70,142.00

Gross Profit P205,858.00

Less: Operating Expenses

Fuel Expense P3, 000.00

Supplies Expense P4, 280.00

Packaging Supplies

Plastic Containers (@3.25 each*4600) P14,950.00

Labeled paper sticker (@4.00 P18,400.00

each*4600)

Depreciation P1,602.11

Salaries Expense (200.00/4 Fridays/Month) P800.00

Net Income Before Tax P163,564.00

Return on Investment (Average Net Income/TPC) 41.20%

Gross Profit Rate (Gross Profit/Total Sales) 74.59%

Net Profit Rate (Net Income/Total Sales) 59.26%

Payback Period (TPC/Ave. net income)

2 Months and 12 days
Sources
http://ro12.dole.gov.ph/default.php?
retsamlakygee=253&resource=254074583392ba8af3ffb78f734ad54b
http://prezi.com/itrs39nhkxzq/aquarius-food-
inhttp://ro12.dole.gov.ph/default.php?
retsamlakygee=253&resource=254074583392ba8af3ffb78f734ad54b dustr
ies-inc/ (Acquarius Food Inc.)
http://filipinostylerecipe.com/tag/shrimp-paste/
http://en.wikipedia.org/wiki/Shrimp_paste
http://www.testedkitchen.com/how-to-make-bagoong-fish-or-shrimp-
paste/
http://filipinofoodaficionado.blogspot.com/2011/10/binagoongang-baboy-
pork-in-shrimp-paste.html
http://dcookingmudra.blogspot.com/2008/08/bagoong-alamang-
fermented-tiny-shrimps.html