Ignite Farm March 10

Kingfisher School of Business and Finance
IGNITE DRAGON FRUIT FARM

I.
Executive Summary
Ignite Dragon Fruit Farm is an agricultural business engaged in growing and distributing
organic dragon fruit to export traders and to institutional markets located within the borders of
Pangasinan and in some nearby provinces.
With the existing shortage in supply of the product, the company will be establishing a 3hectare farm located in San Pascual, Burgos, Pangasinan wherein the plants will be grown
using the most efficient and effective methods and techniques that are consistent with the
requirements of The Philippine Organic Act of 1902. Cuttings will be used to propagate dragon
fruits during the years of expansion and artificial lights will be applied during the nights of
December to April to enable flowering of the plant and harvesting during off-season. Two kinds
of dragon fruit will be planted in the farm namely Pitaya Roja and Pitaya Amarilla. Although there
are three main varieties of the fruit, only the two will be planted because of their popularity to
consumers yet lesser supply in the market.
In marketing aspects, Ignite Dragon Fruit Farm will be promoting its product through
farm tours and social websites wherein the company will be sharing knowledge and information
about dragon fruits. In the farm tours, seminars and on-field experience will be given to the
visitors that will increase the peoples knowledge about dragon fruit. While in social websites,
the company will be able to answer the questions of interested parties regarding dragon fruit
industry.
The company will be segmenting its market into global or international and local market.
Export traders will be supplied to enter the global market for the fruit while institutional markets
such as malls and supermarkets will be targeted in the local market.
Currently, the periodic demand of traders and institutional markets significantly exceeds
the production yield of the country calling for more growers of dragon fruit. The weekly demand
of the traders for dragon fruit of Refmad Dragon Fruit Farm, which is the countrys leading
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C. Fernandez, J. Monterola, M. Nevado, R. Soriano

dragon fruit producer with 13-hectare farm, averages 300 metric tons or 300,000 kg per week
but only 5 metric tons or 5,000 kg per week is being met by the said farm.
For the first five years of operation, the total sales and net income of Ignite Dragon Fruit
Farm amounts to, PhP 34,420,054.4 and PhP 20,003,151.3, respectively. These amounts
shows that for these five years of operation, the business is highly profitable and engaging in
dragon fruit farming is undeniably feasible.
Ignite Dragon Fruit Farm will aid in stabilizing and supporting the growth of the industry
to satisfy the needs of the dragon fruit market.
II.
Introduction
A. General Concept of Business
Nowadays, consumers are becoming more conscious about their health and body
leading to people becoming more sensitive and discriminating in picking the foods they eat. This
change in the behavior of the society expands the market for healthy and nutritious foods and
beverages. One of the industrys growing products is the dragon fruit which is said to be highly
nutritious and beneficial to consumers. Many people worldwide love this fruit especially in Asian
countries.
Dragon fruit farming is the new money-crop according to the Department of Agriculture
Bureau of Agricultural Research (DA-BAR). According to the study of Mariano Marcos State
University (MMSU) in Ilocos Norte, a hectare of dragon fruit farm can earn an accumulated net
income of PhP 2.5 M in its first four years using a PhP 80 price per kg. Despite this highly
promising feature of the industry, the growth is still slow taking seven years to triple the total
number of farm with 37.7 hectares during 2007 to more than 100 hectares as of this year.
Here in Pangasinan, the products supply is still very limited despite the high market
demand. This may be due to the plants seasonal harvesting characteristic and the few dragon
fruit growers in the province. In response to the current markets needs, our company is
studying various factors that will help in forming our Ignite Dragon Fruit Farm.
Ignite Dragon Fruit Farm will be located at San Pascual, Burgos, Pangasinan where
dragon fruits will be grown using the most effective and efficient methods and techniques of
growing the fruit that are consistent with the requirements of The Philippine Organic Act of 1902.
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This includes the artificial lighting of the fruit during night which will improve the production of
dragon fruit and will even make the plant flower during off-seasons and the usage of organic
fertilizers instead of chemical-based fertilizers. The Dragon fruit farm will be growing two main
types of dragon fruit namely Pitaya Roja and Pitaya Amarilla. In the farm, a total of 2
hectares out of the 3-hectare farm will be planted with the Pitaya Roja and the remaining will be
planted with the Pitaya Amarilla.
Ignite Dragon Fruit Farm will be entering both the local and international market for
dragon fruit. Regarding product distribution to local market, the company will be targeting
different malls and supermarkets within the borders of Pangasinan and in some nearby
provinces. Malls and supermarkets are where most middle and upper class people, in terms of
wealth, buy their foods and things thats why we are targeting this establishments as our main
customers in the local market.
The company will be supplying traders who are engaged in exporting the fruit. The
company will enter the global market because of the greater and bigger market for the fruit.
Usually, dragon fruit farms and plantations sell their product to traders because of the more
favorable and attractive terms in the global market.
Ignite Dragon Fruit Farm will also be available for visit and tours to those who are
interested in learning about dragon fruits and its production techniques. In the farm tours, we
will orient the visitors about the history of the dragon fruit, the proper growing techniques, its
health benefits, and the processed products that can be made out of the fruit like wines, jams
and ice creams. We will also bring the visitors to the actual plantation of the fruit and if possible
let them have experience in planting dragon fruit and harvesting its fruits.
B. Product Description
Our Product
Dragon fruit is a healthy fruit and contains various nutrients coming from a cactus plant.
Dragon fruits which are usually red in color, although some types of dragon fruit are yellow and
pink, are scaly and thin skinned fruit with flesh full of small black seeds like strawberries.
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Dragon Fruit comes in three major types and are shown as following:
Figure 2.2.1
Hylocereusundatus (Pitaya blanca) has red-skinned

fruit with white flesh. This is the most common dragon
fruit.
Figure 2.2.2
Hylocereuscostaricensis (Pitaya roja) has red-skinned

fruit with red flesh.
Figure 2.2.3
Hylocereusmegalanthus (Pitaya amarilla)

skinned fruit with white flesh. This said
has
to
yellowbe
the
sweetest pitaya.
Ignite Dragon Fruit Farm will be
growing
organic Pitaya Roja and Pitaya Amarilla. Our farm will not be growing Pitaya Blanca, which is
the least sweet dragon fruit, because this is the most common of its kind which means this kind
of dragon fruit supplies larger percentage than others in the market. Also, our company wants to
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maximize the production of the two latter types of the fruit because of its better taste yet lesser
availability in the market especially the yellow dragon fruit. Growing dragon fruit using organic
fertilizers makes the product healthier and avoid having chemical contents present from dragon
fruit grown using chemical-based fertilizers.
Life Span
Dragon fruit farming is said to be the new money crop. One reason is the plants long life
span. The dragon fruit plant can last up to 50 years with low cost of maintenance giving high
income to growers. During this life of the fruit the average annual yield per hectare is 20 - 25
metric tons or 20,000 25,000 kg per year. But for computing the annual depreciation of the
dragon fruit we will be using 20 years which is the average life of a dragon fruit plant.
Product Pricing and other services offered
Our product will be priced to targeted customers at PhP 100 during the plants harvesting
season and PhP 120 during off-season for the Pitaya Roja. For Pitaya Amarilla, PhP 110 and
PhP 130 will be quoted during regular and off-season, respectively. Thus, we will be supplying
the market at prices also depending on the availability of supply and the markets demand and
other changes in the market.
Ignite Dragon Fruit Farm will be available for visit and tours to those who are interested
to learn about dragon fruits and its growing techniques. We will orient the visitors about the
history of the dragon fruit, different types of the fruit, the proper growing techniques, its health
benefits, and the processed products that can be made out of the fruit like wines, jams, and ice
creams. We will also bring the visitors to the actual plantation of the fruit and well let them
experience to plant and harvest dragon fruits. Also, the company will be selling cuttings to
aspiring dragon fruit growers.
C. History
Dragon fruits are originally native to Mexico, and they were also transplanted to Central
America and to other parts of the world. According to Aztec literature, Pitahaya fruits date back
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to the 13th century. This fruit is a highly nutritious and healthy food that contains low level of fat
and calories, vitamin C, phosphorus, calcium, fiber and antioxidants. Dragon fruits are also
called as Pitaya, Pitahaya, fire dragon fruit, dragon pearl fruit, green dragon, or strawberry pear.
Dragon fruit first come to the Philippines in 1900 through trade and exchange of goods
with Spaniards. In the early 2000, Dragon Fruit farming is known to be possible in the
Philippines but still gaining popularity. Thus, in 2003, a technology demonstration on dragon
fruit production was established at the Central Experiment Station (CES) of the Southern
Mindanao Integrated Agricultural Research Center (SMIARC) in Manambulan, Tugbok, Davao
City. This Techno-demo farm was then visited by many aspiring dragon fruit growers and some
consumers interested in the growing process of the fruit. With funding support from the Bureau
of Agricultural Research (BAR) through its Agribusiness Development Project (ADP), the
techno-demo farm aimed to:
1. showcase technology on the production of dragon fruit,
2. mass propagate and distribute to other regional research station or interested growers,
and
3. determine the economic value of dragon fruit.
In year 2007, Ilocos started to grow the said fruit and formed the Rare Eagles Forest
Marine and Agricultural Development or Refmad Dragon Fruit Farm.
And after years of
operation, the owner, Edita Aguinaldo is then called as dragon fruit lady of the north. This
dragon fruit plantation is currently the countrys leading exporter and distributer in the
Philippines. And now, this farm has expanded to 13-hectare dragon fruit plantation in Paayas,
Burgos, Ilocos Norte.
Currently, the fruit is also cultivated in East Asian and Southeast Asian countries such as
Cambodia, Thailand, Taiwan, Malaysia, Vietnam, Sri Lanka, the Philippines, Indonesia, and
more recently Bangladesh. They are also found in Okinawa, Hawaii, Israel, northern Australia,
southern China, and in Cyprus.
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This growth of the dragon fruit agriculture sector still continues to boost creating more
opportunities to future dragon fruit plantation.
D. Importance of the Study
As the behavior of the society changes in relation to the food they eat the market for
nutritious foods becomes more popular. Dragon fruit farming then started to grow to provide the
markets needs. Ignite Dragon fruit farm comes as response to this change and to improve the
current methods and techniques in growing dragon fruit.
The farm will help in improving the yearly production of the fruit in order for the supply to
get near to the markets current demand. In, Thailand where most of the new growing
technologies in the Philippines are based have average dragon fruit yield of 30 metric tons per
hectare while in the Philippines have an average yield of 20 metric tons per hectare. We will
apply the latest growing techniques like the usage of artificial lighting and we will further improve
these methods. The company will also study and make other methods that can improve the
production capacity and proper maintenance of the plant and its fruit.
Ignite dragon fruit farm will be helping in exposing the dragon fruit to the market. We will
be committed in widening the knowledge of the market and its participants that can give more
popularity to the fruit. Ignite dragon fruit farm will orient the people about the proper growing
techniques and we will share to them the modern and the latest way of growing and producing
dragon fruits. The company will enlighten the markets knowledge about the good benefits and
nutritional values that the fruit can give. The business also aims to aide consumers in picking
the sweet and well grown fruits against unsavory ones.
The yellow dragon fruit is the sweetest yet hard to find in the market. In order to solve
this problem, well be growing in the farm this said fruit. The Ignite Dragon Fruit Farm will study
the proper way of growing this kind of fruit and that will eventually increase the supply of the fruit
to be available in the market.
This study will improve agricultural sector of the country and give better opportunities to
future dragon fruit farming and plantation.
III.
Industry Profile/Analysis
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A. Industry Overview
Dragon fruit farming is a slow growing business industry despite the very good potential
of the industry. This is due to the innocence of fruit and vegetable farmers with the information
about dragon fruit and its industry.
Dragon fruit is a highly nutritious fruit. Most consumers are those who are finding a way
to cure their relatives with some special disease and health problems. For example, the owner
of Refmad Dragon Fruit Farm, Edita Aguinaldo-Dacuycuy, first tries the fruit when she learned
that it is good for those with constipation, which is common to cerebral palsy patients like her
daughter. Also, being the only fruit from a cactus gives the product more popularity to
consumers. This popularity of the product still grows.
According to some studies, the dragon fruits potential in the market is highly promising.
This is because of the high returns and big profit of the business. Furthermore, this is said to be
the new money-crop.
Despite the existence of many farms in the Philippines today, the product supply still
dont meet the growing demands in and outside the country.
B. Supply
During 2007, there are only a total of 37.7 hectares of dragon fruit farms in Ilocos Norte.
But now there are more than 100 hectares of dragon fruit plantations. The annual yield of the
country for dragon fruit averages 2,000 2,500 metric tons or 2,000,000 2,500,000 kg. The
supply for the dragon fruit in the Philippines is continuously growing because of the high
marketability of the product especially in other Asian countries. Also, the growing demand for
processed products containing dragon fruits increases the number of interested and aspiring
growers.
Dragon fruit can be propagated through cuttings or seeds. A dragon fruit after 8 months
to 1 year can produce its flowers when planted using cuttings. But it will take 5 years to flower if
planted through seeds. In average, the yield per year of 1 hectare dragon fruit farm is ranging
from 20 to 25 metric tons or 20,000 to 25,000 kg.
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The discoveries of methods and techniques to improve the production of the fruit also
increase the supply of the dragon fruit in the market. Like the continuous harvest of dragon fruit
even in off-seasons. This is the result of the study by a research team led by Leonardo T.
Pascua, Dragon Fruit Research, Development and Extension Project Leader and Regional
Techno-Transfer Coordinator of the Ilocos Agriculture and Resources Research and
Development Consortium (ILARRDEC) based at the Mariano Marcos State University, Batac
City. Pascua disclosed that the off-season production is made possible by manipulating the
environment through artificial lighting using 6-watt Light Emitting Diode (LED) bulbs or 26-watt
compact fluorescent lamps (CFL) from 10:00 pm to 2:00 am.
The Refmad Dragon Fruit Farm which is the countrys leading producer and exporter of
the product with 13-hectare farm exports 5 metric tons per week. Most farm largely focuses on
supplying the global market even the demand in the local market is still not met.
In Pangasinan there are also still few dragon fruit growers and farms. This makes the
supply of the fruit in the province still low compared to the current demand.
C. Demand
Most consumers of the products are those informed about the health benefits of the fruit
and those who have health problems and maintaining the health of their body. And this demand
in the market still grows because of the change towards healthy and nutritious food
consumption.
The demand for the dragon fruit grown in the Philippines can be divided into two different
markets which are local and the global market. In the Go Negosyo, speakers encourage
aspiring growers to invest in dragon fruit farming because of high demand in the global market.
They said that the Philippines need 1,000 hectares of dragon fruit farms in order to sustain the
need of the global market.
In the local market, the dragon fruit demand is also in good condition. The fruit is still
gaining popularity in the country thus the local demand is expected to grow more. The local
market for dragon fruit involves not only the fruit but also the processed dragon fruit like jams,
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wines, ice creams and even soaps. The demand for the product in the local market still has high
possibilities to grow in the coming years.
D. Porters Five Forces Model
Low Supplier Power
The supplier power in the dragon fruit farming industry is very low because this type of
business, especially those well-developed farms, rarely needs external suppliers. Most farming
businesses dont need supplier because they are the primary supplier in the market. The
growers just need to take care of the plants in order to improve the production of fruits and
vegetables.
In dragon fruit farming, seedlings and cuttings from outside suppliers are only needed in
forming and developing the farm. Thereafter, cuttings from own plants will be used in
propagating the plants. Also, organic fertilizers are the ideal fertilizers for dragon fruits.
Low Buyer Power
The buyer power in our business is low because the consumers actions dont affect the
products market and its prices.
In local market where the demand for dragon fruit is more than the supply, its only
natural that the consumers cant influence the price moreover the growers have alternative
market to offer their product, which is the global market. For example, when the price in the
local market significantly decreases and relatively stable in the global market, the local growers
of the dragon fruit will sell their product at the global market. As a result the supply of dragon
fruit in the market decreases and the burden then goes to the consumers.
Our business, Ignite Dragon Fruit Farm currently is not overpowered by the consumers.
This is a good strength of the business in the industry.
High Threats of new entrants
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Cost of entrance and exit price in specific market are vital in deciding to invest in a
certain business. Most decision makers evaluate these factors and study the effects of these
costs.
Cost of entrance in the dragon fruit market and dragon fruit farming is low because of
absence of restrictions by government. Also the barriers to enter the market are low. In fact the
dragon fruit can be planted even in our homes backyard with little cost. The low cost of entry in
the market attracts aspiring growers to invest and enter the market. Furthermore, different
government agencies help and assist these growers in developing their farm. These features of
the product heighten the threat of new entrants of our business.
Many growers consider growing dragon fruits making a market for farms. This also
increases the business threat of new entrants.
Low Threats of Substitutes
Dragon fruits really are quoted at higher price than other fruits in the market. But this
does not heighten the companys threats of substitutes because only few fruits have many
benefits and nutrient contents like the dragon fruit. Kiwi fruits and pears are both highly
nutritious fruits and some people compare these products to the dragon fruit. But these products
are priced higher in the market.
Low Competitive Rivalry
As stated earlier in the supply of the dragon fruit in the Philippines, the leading dragon
fruit grower have 13-hectare farm over a total of 100 hectare dragon fruit farms in the country.
This shows that there is a low concentration of market share in the industry.
In this industry, the numbers of competing firms is growing. Also, there is minimal
product differentiation in this market that may lead to higher intensity of competition. But in the
dragon fruit business, the intensity of competition between farms is still low because of the fast
growing demand for the market. These factors compensate for the increasing volume of dragon
fruit growers in the country and the minimal product differentiation in the market. Also, the
dragon fruit growers in our country can sell its product either in local or at global market.
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Furthermore, the low cost of exit in the market because of absence of asset
specifications and the salability of existing farms lead the rivalry among competitors into low
intensity.
E. SWOT
Strengths
Efficient production of dragon fruit using the latest methods/techniques that
improves annual yield per hectare

The products several health and nutritional benefits
The farm tour offered by the company that can give more popularity to the farm
The farm location in Burgos, Pangasinan which is among the high lands in
Pangasinan making the farm free from flood

The fertile land in Burgos, especially our farm site which is still unused, further
improves yield rate

The easy and fast way of propagating the plants using cuttings
Organic way of growing dragon fruits
The long life span of the plan
Weaknesses
Premium price of the product compared to other fruit

Inexperienced management team of the company regarding actual work place
The plant spacing feature of the fruit that uses wider land space compared to
other fruit and vegetable products.
Opportunities
There is already existing market for the companys products
The Philippines being a tropical country helps in proper growth of the plant
The rarity of yellow dragon fruit in the Philippine market
Dragon fruit can be processed into variety of products like jams, wines, ice
creams, vinegar etc.

The supply of the product in Pangasinan market and other provinces still dont
meet the markets demand

The increasing popularity of the dragon fruit can improve the current market
The shortage in supply of dragon fruit compared to demands both in local and
global market
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Threats
The countrys existing dragon fruit farms and plantations

The unsavory and tasteless perception of some consumers of the fruit in
Pangasinan market
Changes in government regulations that may affect dragon fruit market
Calamities in the Pangasinan that may affect production capacity and other
factors
IV.
Company/Business Profile
A. Background
Ignite Dragon Fruit Farm is a dragon fruit plantation aimed to strengthen the dragon fruit
industry of the Philippines, especially in Pangasinan.
The company will also make some research that will further help and improve the
growing and production capacity of dragon fruits.
Ignite Dragon Fruit Farm will be located at San Pascual, Burgos, Pangasinan where well
be growing our organic dragon fruits that will be distributed in Pangasinan market and some
nearby provinces.
Regarding product distribution, we will be targeting different malls and super markets in
and outside Pangasinan as a way to providing the market our best grown organic dragon fruits.
And will be supplying different export traders as our major customer.
Ignite Dragon Fruit Farm will also be available for visit and tours to those who are
interested to learn about dragon fruits and its growing techniques.
The researchers of this business will compose the companys management team. But
due to lack of experience in actual farms, the company will employ knowledgeable and
experienced dragon fruit growers.
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B. Vision and Mission

Vision
The leader in the Philippines in producing and promoting organic dragon fruit as the
countrys new top export product and the best organic dragon fruit farm in Pangasinan.
Mission
To produce the best organic dragon fruit varieties that can bring the best satisfaction to
consumers and sustain the needs of the market as support to the growing demand of the
product both in local and international markets.
C. Long-Range/Specific Objectives
The company will be committed to provide the best organic dragon fruits in the market
and will continuously strive to satisfy the consumers regarding taste, societal responsibility, and
health factors. The company will also be committed in achieving and maintaining its specific
objectives as follows:
To promote healthy life style through growing and distributing healthy and highly
nutritious organic dragon fruits

To distribute to the consumers the best grown and best tasting dragon fruits
To develop the best farms for dragon fruit and insure to maintain the quality of
our product
To help to provide both the local and global market sufficient dragon fruit to meet
the consumers demanded

To widen the consumers knowledge about the good benefits of the fruit
The company, after successful entrance to the dragon fruit industry, will consider
the growing of hybrid dragon fruits.
D. Company/Business Name and Logo

Our Name
Ignite Dragon Fruit Farm is a company engaged in growing organic dragon fruit. We
called it Ignite due to various reasons that are related to our product and our companys
objectives.
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Ignite literally means to start to burn and comes from the latin word ignis which means
fire. Dragon fruit has a thin and scaly skin that forms a shape similar to fire thats why they also
called it fire dragon fruit. Also fire can be easily spread like dragon fruits propagating method,
the usage of cuttings. But the main reason we name our farm as Ignite because of the fires
ability to give light in the dark. Our company aims to enlighten and improve the knowledge of the
market and its participants about dragon fruit especially here in Pangasinan. We want to spread
around the Philippines the nutritional and health benefits of the product to human body and
other relevant factors that will encourage the people to patronize the fruit.
Our Logo
Figure 4.4.1
E. Location/Vicinity Map
Dragon fruit must be planted in an open field with direct exposure to sunlight. It is not
conducive to plant the crop in areas where rainfall is well distributed. Site should be free
draining with a sandy loam soil with a high organic content.
The Ignite Dragon fruit farm will be located at San Pascual, Burgos, Pangasinan and
takes 2.5 hrs trip from Dagupan City as illustrated bellow.
Figure 4.5.1
Our Dragon fruit farm is to be established in an unused 3-hectare agricultural land. This
a good location for our farm because of the elevated feature of the land compared to other
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agricultural land in the province. This will give our plantation a good sunlight and will make our
farm be free of flood.
The aerial view of the proposed site for Ignite Dragon Fruit Farm is shown below.
Figure 4.5.2
V.
Review of Literature
Pitaya growers continue to increase throughout the country, from the provinces of
Cavite, Ilocos, Bicol, all the way to Davao, and even a couple of commercial planting farms in
Pangasinan, Nueva Ecija and Quezon. Its reputation of profitability continue to spread, and
more farmers are committed to the production of dragon fruit. Selling expensively in the local
market, roughly PhP 150 180 per kilo and even higher abroad, dragon fruit is tagged by the
Department of Agriculture Bureau of Agricultural Research (DA-BAR) as a money crop. With
little investment capital and maintenance for growing pitaya and producing dragon fruit, DA-BAR
pushes on to discovering planting techniques to increase the productivity of the pitaya cactus.
Research and development (R&D) initiatives to fully uncover the possibilities presented
by dragon fruit were undertaken in 2003 by DA-BAR through its Agribusiness Development
Project (ADP). In collaboration with the Southern Mindanao Integrated Agricultural Research
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Center (SMIARC) in Davao City, the initiative was able to: 1) enhance and share the production
technology of dragon fruit, 2) propagate seedlings for distribution to other interested growers,
and 3) establish the value of the produce. To this date, the techno-demo farm in Davao City
continues to draw-in interested growers and producers for techniques and planting materials
they need to begin their dragon fruit garden or farm.
One agenda of R&D is ensuring that the natural resources in the Philippines are used
and maximized to its full potential such as the unexplored fruits common in our country. The
culinary, medicinal, and economic possibilities of these Filipino fruits are endless and are
waiting to be discovered. It is up to us to continue unearthing these agricultural wonders for a
food self-sufficient Philippines.
(Zuellen B. Reynoso)
In the first four years of a dragon fruit farm, one can realize an accrued net income of
PhP 2.5 million, according to the Mariano Marcos State University (MMSU) in Ilocos Norte.
Dr. Miriam Pascua, MMSU president, cited the following to The STAR:
In the second year when the dragon fruit plants begin to bear fruits, a plantation owner
can harvest at least 10 metric tons valued at PhP 650,000. In the third year, 15 metric tons of
dragon fruits valued at Php 1 million can be reaped.
Accrued net income for four years is PhP 2.5 million at farm gate price per kilogram of
PhP 80, the MMSU president said.
MMSU is a five-campus university whose seat of administration is the main campus in
Batac City situated 470 kilometers northwest of Manila.
Dr. Pascua said that from 1,111 to 1,666 planting materials of this vine-like species of
cactus could be planted in a hectare.
Scientifically named Hydrocerousundatus, dragon fruit is fast becoming the apple of the eye of
the Ilocos fruit industry.
About 1,000 hectare has been envisioned to be planted in Ilocos Norte in line with the
provincial governments goal to make the countrys northwestern most provinces as the dragon
fruit capital of the Philippines.
(Rudy A. Fernandez)
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VI.
Market Feasibility
Market Definition
Ignite Dragon Farm will be dividing its market into two segments, namely the local and
global market. The local market corresponds to the targeted institutions by the company to
whom the dragon fruits will be delivered. This market includes institutions such as the CSI,
Magic, Robinsons, and SM that are located within the borders of Pangasinan. Also, the
Regarding its activities concerning the global market, the company will be selling its
products to export traders who will be directly associated to exporting dragon fruits to other
countries. The easiest way to enter the global market is through these traders.
In both market, the Ignite Dragon Fruit Farm will be offering the Pitaya Roja, the redskinned dragon fruit with red flesh and the Pitaya Amarilla, the yellow-skinned dragon fruit with
white flesh.
Agriculture Industry
Figure 6.1
Source: Bureau of Agricultural Statistics BAS
In the country, the agricultural productivity and its share to total exports significantly
decline starting 1980 but by the year 2000 the share of agricultural exports to countrys total
exports is gradually increasing.
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The graphical illustration of percentage distribution of the countrys agricultural exports

from 2004 to 2010 is shown below.
Figure 6.2
Percentage Distribution of Philippine Agricultural Exports Market Destinations, 2004-2010
Japan - 14%; 14%

Others - 35%; 35%
Netherlands - 11%; 11%

South Korea - 6%; 6%
Thailand - 4%; 4%
Vietnam - 3%; 3%
Malaysia - 3%; 3%
USA - 24%; 24%
Source of basic data Bureau of Agricultural Statistics (BAS)
This graph shows that the United States of America consumes the largest percentage of
the countrys exported agricultural produce.
One of the growing agricultural business sectors in the Philippines is the production of
dragon fruits especially in northern part of Luzon like Ilocos and Pangasinan. Pangasinan is a
province that stabilizes its economy mainly through agricultural and aqua-cultural activities.
Most people residing in the province earn their income through these activities.
In the past seven years, the supply of dragon fruit in the country increased from 37.7
hectares of farms to more than 100 hectares with yield of 20 25 metric tons per hectare of fruit
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every year. This increase in supply is driven by the larger increase of demand in both global and
local market.
Dragon fruit farm in Piddig, Ilocos Norte posted on facebook that on September 7, 2014
they receive a buy offer of 14,000 kg of dragon fruit and 3,000 on August 9, 2014 but they dont
have more resources to fill the orders. This indicates that dragon fruit production in the country
is far from the demand in local and global market.
Also according to Edita Dacuycuy, the country needs to develop 1,000 hectare dragon
fruit farms in order to sustain the demand of the fruit in the global market. Also, she said that
several traders engaged in the global market approached her to deliver 300 metric tons per
week but the farms production is still far from this offer. Furthermore, the dragon fruit industry in
the Philippines is said to be the new money-crop by the Department of Agriculture.
The country is now part of the free trade agreement on dragon fruit among ASEAN
nations. Also through ASEAN, the country entered another free trade agreement with China,
Korea, India, Japan, Australia, and New Zealand. This fact implies that the market for dragon
fruit has really a big potential.
Supply
Philippines is ranked 24th in the world when it comes to supply of fruit excluding wines.
This is based on the studies of the world statistics organization.
Philippines now have more than 100 hectares and almost all of these 100 are located in
Ilocos Norte. Most of these farms distribute their product to traders who will sell dragon fruit in
foreign countries like China, Korea, and Japan.
Mariano Marcos State University in Ilocos concluded that in the first year of harvest a
minimum of 10 metric tons per hectare will be produce and 15 metric tons in the second year.
And for the whole country, the average yield of all dragon fruit farms is ranging from 20 - 25
metric tons per year. This increase in the yield rate is the result of new methods like the lighting
of the plant during night.
With 100 hectares of farm in the country, the approximated production of dragon fruits
per year ranges from 2,000 to 2,500 metric tons or 2,000,000 2,500,000 kg.
Pitaya Amarilla Supply
20 | P a g e

Yellow pitaya is rarely found in the Philippine market but the number of farms growing
this variety is increasing. It is not common in Philippine market despite being the sweetest of all
sweet dragon fruit because of its nasty thorn protection. These thorns must be removed before
harvest using pliers, brush and gloves. But the main reason of its rarity is the relatively small
sizes of the fruit compared to other varieties of dragon fruit which make the fruit less popular to
growers
Demand
The demand of dragon fruit in global market is really high compared to the countrys
annual yield. In fact, almost all farms growing dragon fruits cannot meet all of their customers
orders. One example is the unmet customer order of 17,000 kg of a farm in Piddig, Ilocos Norte
during the third quarter of 2014.
The traders demand for dragon fruit of Ilocos approximates 300 metric tons per week.
This amount is what the traders ordered when they approached Edita Dacuycuy, the President
of the Philippine Dragon Fruit Growers and Processors National Council. For all the farms in the
country, approximately 20,000 metric tons or 20,000,000 kg of dragon fruit is demanded by
traders based on the 1,000 hectare dragon fruit plantation projection of Edita Dacuycuy.
Unfortunately, the country is still very far from meeting this demand of the traders engaged in
global market.
Other Market Info
In the local market, the company will be targeting the different malls and supermarket in
Pangasinan.
For supplying these different malls, the company will be communicating with the
purchasing supervisors or other officers with same responsibility the terms and conditions of
distribution. For SM and CSI the product will be distributed on consignment basis, for other
malls, contract of sale will be entered as goods are delivered.
The listing of the malls and supermarkets within Pangasinan that purchases and sells
dragon fruit is shown below.
Table 6.1
21 | P a g e

CSI The City Mall Dagupan
CSI The City Mall San Fernando
CSI Urdaneta
CSI Warehouse Club Alaminos
CSI Warehouse Club San Carlos
CSI Warehouse Club Urdaneta
CSI Y.E.S. Bayambang
CSI Y.E.S. Malasiqui
CSI Y.E.S. San Carlos
Magic Mall Urdaneta
Magic Alaminos
Magic Dagupan
Magic Lingayen
Magic Mangaldan
Magic San Carlos
Magic Urdaneta
Nepo Mall Alaminos
Nepo Mall Dagupan
SM Rosales
Robinsons Place Pangasinan
Target Market Share
Lucao District, Dagupan City, Pangasinan

San Fernando City, La Union
Nancayasan, Urdaneta City, Pangasinan
Romulo Hiway, Alaminos City, Pangasinan
Poblacion, San Carlos City, Pangasinan
Nancayasan, Urdaneta City, Pangasinan
Rizal Ave, Bayambang, Pangasinan
Provincial Road, Malasiqui, Pangasinan
Rizal Ave, San Carlos City , Pangasinan
MacArthur Highway, Urdaneta City, Pangasinan
Alaminos City, Pangasinan
Malimgas Market, Dagupan City, Pangasinan
Lingayen, Pangasinan
Mangaldan, Pangasinan
San Carlos City, Pangasinan
Urdaneta City, Pangasinan
Marcos Avenue, Alaminos City, Pangasinan
Arellano Street, Dagupan City, Pangasinan
Rosales, Pangasinan
Calasiao, Pangasinan
Percentage based on Companys good
Percentage based on the market
production
demand
2%
23.48%
98%
0.4%
Market
Institutional
Market
Fruit Export
Traders
Local Market
Institutions
The company will be targeting to supply 2% of its good production, with annual
production of 82,168.7 kg, to institutional markets which approximates 1.64 metric tons or
1,643.4 kg per year. Based on our study, the approximated demand of institutional markets for
dragon fruits amounts to 7,000 kg per year which we derived from their periodic orders.
Global Market
The company targets to supply the export traders of dragon fruit by 98% of the
companys good production. This approximates 80.5 metric tons or 80,525.3 kg per year which
is 0.4% of the current global demand for dragon fruit which is 200 metric tons or 20,000,000 kg.
22 | P a g e

Traders usually exports but some traders just sell the fruit to other cities in the country like
Manila and Baguio City.
Customer Research
The researchers in determining the demand of different institutional markets in
Pangsinan inquires their respective purchasing supervisors about their periodic dragon fruit
purchases. And the following information was gathered:
1. The annual demand of malls and supermarkets shown in table 6.1 approximates 7,000
kg;
2. The average purchase price from their current supplier ranges from Php 120 -150;
3. Dragon fruit are only available during its regular harvesting season that runs from May
November;
4. For CSI Malls and SM, dragon fruit are sold through consignment basis; and
5. Other malls enter with their suppliers in a contract of sale.
For dragon fruit export traders, the terms and normal purchasing procedure provided by
the Refmad Dragon Fruit Farm are as follows:
1. Orders and payment from traders are received months before their harvest because of
the limited supply in relation to current demand; and
2. Dragon fruits are usually delivered from them to their buyer with Refmad paying the
delivery expense.
Marketing Mix
Price
The companys dragon fruit, concerning the Pitaya Roja, will be offered in the market at
the same rate as other farms growing dragon fruits. Because of the absence of product
differentiation it will not be feasible for us to mark our product higher than those existing farms.
This price ranges from PhP 100 120 per kg. During the harvesting season of the dragon fruit
prices will be set at PhP 100 per kg and at PhP 120 during off-season.
The Pitaya Amarilla, will be quoted at PhP 110 130 which is higher price than the other
types of dragon fruit because of its lesser availability in both global and local market. Also, its
23 | P a g e

sweeter feature increases the consumers preference of this type of dragon fruit than others. But
the price will also be quoted at same rate with other yellow dragon fruit.
Placement
Ignite Dragon Fruit Farm will be dividing its market into two segment which is the local
and global market for the dragon fruit.
Local Market
Institutions such as CSI, Magic, SM, and Robinsons are the main target market of the
company in local market.
Global Market
In order to enter this international market, the company will be distributing its product to
export traders who will export the fruit to other countries.
Promotional Strategy
The companys main promotions will be made through social networks in internet like
facebook and instagram. The company will be active in these websites in order to update our
customers.
The company will be open for free visit to increase the knowledge of the consumers
about dragon fruits. In this tour, the company will teach visitors about the fruit, its benefits,
history of the fruit and the company, products that can be made out of it, basic growing methods
and other more. Also, willing visitors will experience harvesting the fruit during harvesting
season. But the fruits they harvest will be paid by the visitor.
Sales Projection
The sales projection of Ignite Dragon Fruit Farm in the first five years of operation is
illustrated below.
Table 6.5
Period
Year 1 August
September
October
November
December
Year 2 January
February
Production
(kg)
5,142.9
5,142.9
5,142.9
5,142.9
4,516.3
4,516.3
4,516.3
Sales
(kg)
5,117.2
5,117.2
5,117.2
5,117.2
4,493.7
4,493.7
4,493.7
Sales Price per kg

(PhP)
100 & 110
100 & 110
100 & 110
100 & 110
120 & 130
120 & 130
120 & 130
Sales Amount
(PhP)
528,777.3
528,777.3
528,777.3
528,777.3
554,223
554,223
554,223
24 | P a g e

March
April
May
June
July
August
September
October
November
December
Year 3
Year 4
Year 5
Total
4,516.3
4,516.3
5,142.9
5,142.9
5,142.9
5,142.9
5,142.9
5,142.9
5,142.9
4,516.3
67,581.6
82,581.6
82,581.6
316,414.5
4,493.7
4,493.7
5,117.2
5,117.2
5,117.2
5,117.2
5,117.2
5,117.2
5,117.2
4,493.7
67,243.7
82,168.7
82,168.7
314,832.5
120 & 130

120 & 130
100 & 110
100 & 110
100 & 110
100 & 110
100 & 110
100 & 110
100 & 110
120 & 130
100/120 & 110/130
100/120 & 110/130
100/120 & 110/130
554,223
554,223
528,777.3
528,777.3
528,777.3
528,777.3
528,777.3
528,777.3
528,777.3
554,223
7,397,888.7
8,940,138.7
8,940,138.7
33,450,591.4
The annual sales is 99.5% projected harvest computed using yield per hectare of 12
tons for the second year, 15 tons for the third, 20 tons for the fourth and fifth year during the
regular harvesting season, which is from May to November, and wherein 1 metric ton equals
1,000 kg, and 7,527.2 kg during off-season for all years except the first year.
In the first year, 20,571.6 kg will be harvested from August to November, and 4,516.3 kg will be
harvested in December with the help of artificial lighting.
Two hectares out of three will be dedicated to planting the Pitaya Roja, while the
remaining 1 hectare will be planted with Pitaya Amarilla. Also, price of PhP 100 will be quoted
per kg of the Pitaya Roja fruit for the regular harvesting season and PhP 120 for the off-season.
For the Pitaya Amarilla, PhP 110 per kg will be quoted during the regular season and PhP 130
during off-season.
VII.
Production/ Technical Feasibility

The company being an agricultural business and because of the need for the natural
process of flowering and fruit production of the plants, will only be performing methods that will
enhance the yield of the farm. Also, maintenance and preservation procedures for the farm will
be employed in the operations of the company.
In order to harvest the budgeted output quantity and quality and to meet the quotas set
by the management, the company will follow the given procedures below.
25 | P a g e

Planting and Propagating Procedures
Dragon fruit can be propagated through seeds or cutting. The company will be
propagating the dragon fruit using cuttings because this enable faster harvesting of fruit which
takes 8 months to year only. Dragon fruit planted using seeds takes 5 6 years to bear fruit.
Also, propagating using cuttings is a lot easier than using seeds.
The planting of plant using cuttings is shown below.

1. Cuttings from fully grown dragon fruits will be used to propagate the plant. 15 - 20 cm
cuttings are used for planting. Cuttings will b piled up 1 2 days prior to potting.
Figure 7.1
2. A mixture
will be prepared in
pot
where the cuttings
will
be
planted
compose
and
will
of dry cow dung,
sand, and soil on top. These cuttings in the pot will be kept in shade to rooting and
the rooted cuttings will be acclimatized before planting.
In planting both the Pitaya Roja and Pitaya Amarilla, 2 x 2 meters spacing will be applied
which will provide a space for 5,000 concrete posts. The pit size for the plants will be 60 x 60 x
60 cm.
Training of Plants
26 | P a g e

Dragon fruit needs support to up right growth. Immature stems will be tied to a concrete
column. But thereafter aerial roots developed and bound to column. Lateral shoots must be
eliminated and 2 - 3 main stems are allowed to grow. Because lateral shoots must be removed
time to time, we will arrange round metal frame to maintain balanced shrub. This spreads the
hanging shoots balance way.
Once the plant reaches a mature 10 pounds in weight, the plant may flower.
Figure 7.2
Flowering
In the Philippines dragon fruit flowering season runs from May through November. The
first flowering of the plant may differ according to the way of planting. It will take 7 months to 1
year for a dragon fruit to flower if planted through cuttings. But it will take 5 years to flower if
planted through seeds.
Lighting
For continues flowering of the dragon fruit we will apply artificial lighting that will enable
us to harvest even in off season. This is the result of the study by a research team led by
Leonardo T. Pascua, Dragon Fruit Research, Development and Extension Project Leader and
Regional Techno-Transfer Coordinator of the Ilocos Agriculture and Resources Research and
Development Consortium (ILARRDEC) based at the Mariano Marcos State University, Batac
City. Pascua disclosed that the off-season production is made possible by manipulating the
environment through artificial lighting using 6-watt Light Emitting Diode (LED) bulbs or 26-watt
compact fluorescent lamps (CFL) from 10:00 pm to 2:00 am. In this purpose, Ignite Dragon Fruit
Farm will be using the 6-watt LED because of its better income results compared to the use of
27 | P a g e

26-watt CFL. Using the 6-watt LED a hectare can produce 7,507.2 kg during the 5-month offseason.
Fruiting and Harvesting
Fruits will be matured 30 - 35 days after flowering. Outer cover of immature is in bright
green color. It will become red in color with ripening. Proper time of harvesting is after four days
of color changing. But for export purpose, it is important to harvesting a day after color
changing.
Figure 7.3
For
the
harvesting of the Pitaya
Amarilla, the thorns
must first be removed
using brush, and
those tiny thorns not
removed
brush will be removed
by
the
using pliers.
Organic Fertilizer
Well be using organic fertilizer in giving nutrients to our farm. Organic fertilizer is very
important to proper growth and development of dragon fruit plant. Because applying 15kg of
organic fertilizer per plant can increase the amount by 2kg per year up to 20kg. The young
plants will be filled by 1/8 lbs of organic foliar and 14-14-14 complete fertilizer in the first month
and every other month while mature plants will take lbs.
Other Horticulture
The optimal rainfall of the cacti should be between 600 - 1300mm since excess
rainfall will cause the flowers to drop, definitely reducing the fruit set. The biggest
enemy of the cacti is water logging as it kills it. Equally, excess humidity causes
28 | P a g e

proliferation of soft rot caused by the erwinacarotovora bacteria. A dry rot on the
other side is caused by extreme soil moisture.

Shading will be used in times where there are excessive light. This will be made
through setting temporary tents and others.

Just like the rainfall, excessive temperature can damage the Pitahaya fruit.
Optimal temperatures should be between 38-40 degrees Celsius. The effects
include abnormal browning and the stems of the affected plants may end up
liquefying. Flowering is equally affected by excessive temperatures.

Ants and other pests will damage the plant and its fruit. We will be applying
preventive measures for these creatures.
Distribution
In distributing the respective orders of the companys customers, the company will be
outsourcing delivery companies to transport.
Value Chain
Figure 7.4
End
Consumers
Global Market
29 | P a g e
B
O
A
e
a
S
trb
s
D
g
iln
d
v
p
o
u
Ignite Dragon Fruit Farm, which is the ultimate supplier in the commodity flow, will be producing
dragon fruits to be distributed to different intermediaries, which are the public markets,
institutional markets, and export traders. Export traders will enter the global market then the
global market, as well as the public market vendors and institutional markets will give the
product to the end consumers.
Revenue Process
Figure 7.5
Sales order coming from customers will initiate the revenue recognition process of the
company then approval, distribution, and billing. The same process will be applied to both global
and local market.
Farm Tour Schedule

With regards to farm tours offered by the company, visitors must coordinate with the
companys tour schedulers at least one week before their planned tours. This is for the
preparation of the tour guides and for proper allotment of time by the schedulers.
Farm tours will be open for visitors as shown in the table.
Table 7.1
Days
and
Time
Morning
Monday
Tuesday
Wednesday
10:00 am
10:00 am -
10:00 am
Thursday
Friday
- 10:00 am - 10:00 am -
Saturday
10:00 am -
30 | P a g e
F
p
A
h
c
S
u
o
T
m
r
a
t
v
g
lin
d
e

Session
Afternoon
-11:00 pm
1:00 am -
11:00 pm
11:00 pm
1:00 am - 1:00 am
Session
2:00 pm
2:00 pm
2:00 pm
11:00 pm
1:00 am -
11:00 pm
1:00 am -
11:00 pm
1:00 am -
2:00 pm
2:00 pm
2:00 pm
Also, the visitors must comply with the following rules established by the management.
1. Foods and drinks are not allowed inside the farm

2. Visitors wearing slippers will not be allowed to enter the farm
3. Walk ins are not allowed in the tour
Farm Tours Processing

Figure 7.6
Visitors must apply for the tour for at least 1 week before their planned visit which will be
evaluated by the VP for Marketing for approval and after approval; employee under the authority
of the VP for Production will be coordinating with the visitors for scheduling, and then the tour.
Farm Site Layout

Figure 7.7
31 | P a g e

9m
8m
Grower
House 2
173 m
Dragon Fruit Farm
Office
and Fruit
Storage
Room
Grower
House 1
8m
9m
173.5 m
32 | P a g e

5,000 concrete posts will be built in the plant site and 4 dragon fruit plants will be planted
in each post. The grower house 1 and 2 will be occupied by four permanent growers who should
be two pairs of married couple. While the office and storage room is where fruits will be stored
and where seminars will be held as part of the farm tour. Also, the company records will also be
placed inside the office.
VIII.
Organizational/Management Feasibility
Business Type
Ignite Dragon Fruit Farm will be formed by the researchers namely, Crishell Fernandez,
Jeanette Monterola, Mark Avedon Nevado, and Regine Soriano as partners. The partners will
compose the management team with different scopes of responsibilities.
Organizational Structure
Figure 8.1
Crishell Fernandez
Partner 1
Jeanette Monterola
Partner 2
Mark Avedon M. Nevado

Partner 3
Regine Soriano
Partner 4
Operations Manager
(Mark Avedon Nevado)
Chief Financial Officer
(Jeanette Monterola)
Executive VP
for Production
(Regine Soriano)
Executive VP
for Marketing
(CrishellFernandez)
Treasurer
4 Regular
Farmers
Duties and Responsibilities

Partners
The Partners will be serving as board of directors who will be performing the final
strategic decisions of the company.
Operations Manager
The Operations Manager will be responsible for the overseeing, designing, and
controlling the process of production and redesigning the business operations for production of
dragon fruit and process for the farm tour. This includes the enhancement of operations through
efficient an effective production processes to meet the customers needs.
33 | P a g e

Chief Financial Officer
The CFO will be responsible in supervising the accounting staff for preparing and
maintaining reports to be used both in managerial and financial accounting and reviewing the
reports to assess the effectiveness and efficiency of operations. The CFO will take part in
ensuring the accuracy of the companys records and financial reports.
Its also the CFOs responsibility to assess the effectiveness and efficiency of internal
control and check whether the established controls are being applied.
Executive VP for Production
This position will be directly associated to producing and growing of dragon fruits in the
farm. The VP for Production will be responsible for meeting the production quotas established
by the decision makers.
The VP for Production responsibilities include but are not limited to the following:
Supervising the farmers in growing the plants
Implementing proper growing methods and techniques
Maintaining the quantity and quality of fruits harvested
Maintaining the cleanliness of the farm
Minimizing the operations and overhead cost
Proper disposal of waste products (includes processing of waste to other
products)
Executive VP for Marketing
The VP for marketing will be responsible for introducing and offering the products to
existing and potential customers. The VP will be the one arranging the terms with traders and
institutional buyers subject to established standards of the company. The VP will also be
marketing the product and the company itself to increase the market share.
In addition, the VP for Marketing will be responsible in coordinating tours and visit in the
farm.
Treasurer
The Treasurer will be responsible for safeguarding the companys assets especially cash
and cash equivalents and will be responsible for raising capital and managing investments. In
34 | P a g e

addition, the Treasurers responsibility includes the management of credit policy and insurance
coverage for the company.
Growers Compensation Scheme
The company will be paying employed growers at PhP 250 per day which is above the
minimum requirement of PhP 233 per day based on the regional daily minimum wage for
agriculture. In addition to the growers basic salary, the growers will be allowed to occupy a
house in the farm with their family. This will help in proper maintenance of the farm and for the
company to be more responsive to unanticipated events such as storm and other calamities.
IX.
Financial Feasibility
A. Major Assumptions
Dragon Fruit Production
From planting, the dragon fruit plants will bear fruit after 8 months.
Two of the three-hectare farm will be planted with Pitaya Roja and the
remaining with Pitaya Amarilla.
In the first year, 20.6 metric tons will be harvested or 20,571.6 kg from
August to November and only 4,516.3 kg will be harvested during offseason per hectare which is equal to 7,527.2 multiplied by 3 and divided
by 5.
The annual yield is based on the projected harvest computed using yield
per hectare of 12 tons for the second year, 15 tons for the third year and,
20 tons for the fourth and fifth year during the regular harvesting season,
which is from May to November and wherein 1 metric ton equals 1,000
kg, and 7,527.2 kg during off-season for all years except the first year.
Spoilage will approximately amount to .5% of the budgeted production
Sales
Having shortage in the supply of dragon fruit compared to its demand, all
harvest of the company will be sold out to customers.
The yearly demand for dragon fruit in international market approximates

20,000 metric tons or 20,000,000 kg and Ignite Dragon Fruit Farm will be
supplying export traders 80.85 tons or 80,849.04 kg during the later years
which is 98% of the companys total production that will be equal to
market percentage share of 0.4%.
35 | P a g e
Pitaya Roja will be priced at Php 100 during its regular harvesting season
which runs from May to November and at PhP 120 during off-season.
While the Pitaya Amarilla will be priced at PhP 110 and PhP 130 during
regular harvesting and off-season, respectively.
Schedule of annual yield and sales for first five years of operation is shown below.
Period
Production
(kg)
5,142.9
5,142.9
5,142.9
5,142.9
4,516.3
4,516.3
4,516.3
4,516.3
4,516.3
5,142.9
5,142.9
5,142.9
5,142.9
5,142.9
5,142.9
5,142.9
4,516.3
67,581.6
82,581.6
82,581.6
316,414.5
Year 1 August
September
October
November
December
Year 2 January
February
March
April
May
June
July
August
September
October
November
December
Year 3
Year 4
Year 5
Total
Sales
(kg)
5,117.2
5,117.2
5,117.2
5,117.2
4,493.7
4,493.7
4,493.7
4,493.7
4,493.7
5,117.2
5,117.2
5,117.2
5,117.2
5,117.2
5,117.2
5,117.2
4,493.7
67,243.7
82,168.7
82,168.7
314,832.5
Sales Price per kg

(PhP)
100 & 110
100 & 110
100 & 110
100 & 110
120 & 130
120 & 130
120 & 130
120 & 130
120 & 130
100 & 110
100 & 110
100 & 110
100 & 110
100 & 110
100 & 110
100 & 110
120 & 130
100/120 & 110/130
100/120 & 110/130
100/120 & 110/130
Sales Amount
(PhP)
528,777.3
528,777.3
528,777.3
528,777.3
554,223
554,223
554,223
554,223
554,223
528,777.3
528,777.3
528,777.3
528,777.3
528,777.3
528,777.3
528,777.3
554,223
7,397,888.7
8,940,138.7
8,940,138.7
33,450,591.4
Gain on Agricultural Produce
Harvested dragon fruits will initially be recorded as gain in agricultural

produce measured at fair value less cost to sell which is equal selling
price.
Cost of Sales
Inventory cost will be composed solely of agricultural produce which is the

dragon fruit.
Expenses
36 | P a g e
Pre-operating Expenses will be incurred in the first year of operations that

includes the following
- SEC Registration Fee of PhP 11,620.
Land Clearing Expenses of PhP 10,000 will be incurred in the first year.
Tools to be purchased in cultivating the land and in continuous

maintenance and harvest for the dragon fruit plantation will be expensed
in whole during the first year.
Operating Expenses
- Miscellaneous expense
Every month 100 kwh of electric consumption will be used and
an additional 2,880 kwh per month from December to April for
the implementation of artificial lighting. The electricity charge
will be computed using the rate of PhP 10 per kwh.
The water consumption of the farm is PhP 6,000 per year.
14 - 14 14 Fertilizer which costs PhP 36,000 per year
Foliar Fertilizer which costs PhP 7,500 per year
-
Harvesting Expenses
Harvesting expenses will be PhP 5 per kg of dragon fruit.
Delivery expense is PhP 2,000 per day and it will take two days to
deliver every month of harvest.
Salary and wages expense is based on the daily wage of four

growers, two married couples, at a rate of PhP 250 per day with the
company having 365 working days per year plus monthly Meal & Rice
Allowance of PhP 1,500 for each couple.
A 5% cost escalation rate will be applied for Operating Expenses for

the years after first year of operation.
The schedule of Operating expenses is shown below.

37 | P a g e
Period
Miscellaneou
s Expense
Year 1 January
February
March
April
May
June
July
August
September
October
November
December
Year 2 January
February
March
April
May
June
July
August
September
October
November
December
5,125
5,125
5,125
5,125
5,125
5,125
5,125
5,125
5,125
5,125
5,125
33,925
35,621.3
35,621.3
35,621.3
35,621.3
5,381.3
5,381.3
5,381.3
5,381.3
5,381.3
5,381.3
5,381.3
35,621.3
Harvestin
g
Expense
25,714.5
25,714.5
25,714.5
25,714.5
22,581.5
22,581.5
22,581.5
22,581.5
22,581.5
27,000.2
27,000.2
27,000.2
27,000.2
27,000.2
27,000.2
27,000.2
22,581.5
Year 3
226,564
372,543.6
26,460
Year 4
237,892
477,992.6
Year 5
249,787
501,892.3
27,783
29,172.1
5
Delivery
Expense
2,000
2,000
2,000
2,000
2,000
2,100
2,100
2,100
2,100
2,100
2,100
2,100
2,100
2,100
2,100
2,100
2,100
Salary &
Wages
Expense
34,000
31,000
34,000
33,000
34,000
33,000
34,000
34,000
33,000
34,000
33,000
34,000
35,700
32,550
35,700
34,650
35,700
34,650
35,700
35,700
34,650
35,700
34,650
35,700
442,102.
5
464,207.
6
487,418
Total
Operating
Expense
39,125
36,125
39,125
38,125
39,125
38,125
39,125
66,839.5
65,839.5
66,839.5
65,839.5
62,553.5
96,002.8
92,852.8
96,002.8
94,952.8
70,181.5
69,131.5
70,181.5
70,181.5
69,131.5
70,181.5
69,131.5
96,002.8
1,067,670.
1
1,207,875.
2
1,268,269.
5
Taxes and Licenses

- Annual BIR Business Registration Fee of PhP 500.
- Business Permit of PhP 1,800.
- Barangay Clearance of PhP 80.
- Police Clearance PhP 115.
- Mayors Permit PhP 90.
- Sanitary Permit PhP 350.
- Annual Real Property Tax will be paid at the end of the year with
amounts as shown below.
38 | P a g e

Year 1
18,733
Real Property Tax
Year 2
18,701
Year 3
18,670
Year 4
18,639
Year 5
18,608
Annual Community Tax of 500 and an additional tax not exceeding

10,000 in accordance with the following schedule
2 for every 5,000 worth of real property owned during the
preceding year
2 for every 5,000 of gross receipts during the preceding year
The Schedule of Total Community Tax Expense is shown below.
Basic Annual Community Tax

Additions based on Real Property
Additions based on Gross Receipts
Total
Year 1
500
1,550
930
2,980
Year 2
500
1,546
2,354
4,400
Year 3
500
1,540
2,974
5,014
Year 4
500
1,536
3,594
5,630
Year 5
500
1,530
3,594
5,624
Schedule of Total Taxes & Licenses is shown below.
BIR
Business Permit
Barangay Clearance
Police Clearance
Mayors Permit
Sanitary Permit
Real Property Tax
Community Tax
Total Taxes & Licenses
Year 1
500
1,800
80
115
90
350
18,733
2,980
24,648
Year 2
500
1,800
80
115
90
350
18,701
4,400
26,036
Year 3
500
1,800
80
115
90
350
18,670
5,014
26,619
Year 4
500
1,800
80
115
90
350
18,639
5,630
27,204
Year 5
500
1,800
80
115
90
350
18,608
5,624
27,167
Depreciation Expenses
-
Dragon Fruit Plants will be classified as PPE of the company; this is

due to amendments to IFRS where PFRS are based. The plant will be
depreciated over the average useful life of dragon fruit which is 20
years
The Concrete Post will be depreciated over 20 years using straight
line method with no residual value at the end of these assets lives.
The buildings will be depreciated over 20 years using straight line
method with no residual value at the end of these assets lives.
The Lighting equipments will be depreciated using production usage
method with total estimated usage of 15,000 hours and that 4 hours
will be used every night with yearly usage of 124 hours during the first
39 | P a g e

year, 604 hours will be used yearly up to the 24 th year, and 380 hours
on its last year.
Schedule of Depreciation Expense is shown below.
Period
Dragon Fruit
Plants
Concrete
Posts
Office and
Houses
Lighting
Equipment
Total Depreciation
Expense
Year 1
January
875
2,983.9
1,093.7
4,952.6
February
875
2,983.9
1,093.7
4,952.6
March
875
2,983.9
1,093.7
4,952.6
April
May
June
875
875
875
2,983.9
2,983.9
2,983.9
1,093.7
1,093.7
1,093.7
4,952.6
4,952.6
4,952.6
July
August
875
875
2,983.9
2,983.9
1,093.7
1,093.7
4,952.6
4,952.6
September
875
2,983.9
1,093.7
4,952.6
October
November
875
875
2,983.9
2,983.9
1,093.7
1,093.7
4,952.6
4,952.6
December
Year 2
January
875
2,983.9
1,093.7
13,627.2
18,578.9
875
2,983.9
1,093.7
13,627.2
18,578.9
February
875
2,983.9
1,093.7
12,308.4
17,261
March
875
2,983.9
1,093.7
13,627.2
18,578.9
April
875
2,983.9
1,093.7
13,187.6
18,140.2
May
875
2,983.9
1,093.7
4,952.6
June
875
2,983.9
1,093.7
4,952.6
July
875
2,983.9
1,093.7
4,952.6
August
875
2,983.9
1,093.7
4,952.6
September
875
2,983.9
1,093.7
4,952.6
October
875
2,983.9
1,093.7
4,952.6
November
875
2,983.9
1,093.7
4,952.6
December
Year 3
875
10,500
2,983.9
35,807.6
1,093.7
13,125
13,627.2
66,377.6
18,578.9
125,810.2
Year 4
10,500
35,807.6
13,125
66,377.6
125,810.2
Year 5
10,500
35,807.6
13,125
66,377.6
125,810.2
Loss on spoilage amounts to .5% of production

40 | P a g e

Period
Spoilage in kg
Year 1 August
September
October
November
December
Year 2 January
February
March
April
May
June
July
August
September
October
November
December
Year 3
Year 4
Year 5
25.7
25.7
25.7
25.7
22.6
22.6
22.6
22.6
22.6
25.7
25.7
25.7
25.7
25.7
25.7
25.7
22.6
337.9
412.9
412.9
FV less cost to sell

per kg
100 & 110
100 & 110
100 & 110
100 & 110
120 & 130
120 & 130
120 & 130
120 & 130
120 & 130
100 & 110
100 & 110
100 & 110
100 & 110
100 & 110
100 & 110
100 & 110
120 & 130
100/120 & 110/130
100/120 & 110/130
100/120 & 110/130
Total Amount
2,655.7
2,655.7
2,655.7
2,655.7
2,787.3
2,787.3
2,787.3
2,787.3
2,787.3
2,655.7
2,655.7
2,655.7
2,655.7
2,655.7
2,655.7
2,655.7
2,787.3
38,674.3
44,924.3
44,924.3
The company will be subject to 30% income tax rate which will be paid 60
days after every quarter for the first three quarter and at the end of the
year for the fourth quarter.
Assets
The farm site in Burgos with a total area of 30,231.5 m 2 cost PhP
3,627,780 at a rate of PhP 120/m2 based on actual selling price of the
land.
In each post, four dragon fruit cuttings will be planted with a total number
of 20,000 which can be bought at PhP 10.00 each plus 5% contingency
rate equals PhP 210,000.
The office and fruit storage room, and grower houses cost PhP 250,000
plus contingency rate of 5% which totals PhP 262,500.
The lighting materials cost for the whole farm is PhP 1,648,447.5 which
will be purchased and installed during the 4th quarter of the first year of
operations.
Breakdown of cost of Lighting Equipment is shown below.

Number of units
Unit Cost
Amount
41 | P a g e

6-watt LED Bulbs
Rubber Socket
2 mm2 THHN copper
wire
Electrical tape
Circuit breaker with
case (15A)
Time Setting Device
Labor cost
Contingency
Total
10 mm Steel bars
Cement
Sand
Motorcycle tires
Labor
Contingency
4,800
4,800
205 box (150m per
box)
150 rolls
1
200
45
1,800
500
20,000
5% of total cost
25
700
960,000
216,000
369,000
3,750
700
500
20,000
78,497.5
1,648,447.50
The 5,000 concrete posts cost PhP 716,152.50. The breakdown of cost is
shown below.
Number of units
Unit Cost
Amount
1,667 pieces
150.00
250,050.00
834 bags
250.00
208,500.00
167m3
500.00
83,500.00
5,000 pieces
10.00
50,000.00
20 carpenters; 15 days
300.00
90,000.00
5% of total cost
34,102.5
Total
716,152.50
Contingency Rate of 5% will be applied on all fixed asset to be purchased

by the company.
Partners Equity
Regine Soriano will be investing the land in San Pascual, Burgos,
Pangasinan while the remaining three partners will be investing cash
sufficient to start the companys operation equally.
Partners, Crishell Fernandez, Jeanette Monterola, Mark Avedon Nevado,

and Regine Soriano will all be participating in managing the business and
will be sharing equally in profits after applying 12% interest in the
beginning capital.
42 | P a g e
At the end of the second year the company will be distributing cash to
partner Regine Soriano to bring her capital equal with others and will
have new profit sharing ratio of 25%, 25%, 25% and 25%, respectively.
On the third year and the years thereafter, 50% of their income will be
distributed to the partners.
B. Financial Statements (all amounts are stated in Philippine Peso)
43 | P a g e
Ignite Dragon Fruit Farm

Statement of Financial Position
As of the Following Date
December 31,Year 2
58,464.3
December 31,Year 1
100,127.1
Assets
Cash
716,152.5
(71,615.2)
3,627,780.0
11,084.5
1,648,447.5
3,627,780.0
11,084.5
Lighting Equipment
(13,627.2)
1,648,447.5
Accounts Receivable
Accum Depn Lighting Equipt

716,152.5
680,344.9
262,500.0
(26,250.0)
236,250.0
644,537.3
1,568,442.7
69,548.8
Concrete Posts
(35,807.6)
249,375.0
(80,004.8)
111,211.6
Accum Depn Concrete Posts

262,500.
1,634,820.3
Total Current Assets

Property, Plant, and Equipment
Office and Houses
(13,125.0)
Land
Accum Depn Office and
210,000.0
6,266,010.0
210,000.0
6,391,820.0
6,335,558.8
Dragon Fruit Plants

Total PPE
6,503,031.8
1,583,889.7
189,000.0
Total Assets
751,379.7
1,583,889.7
(21,000.0)
Fernandez, Capital
751,379.77
1,583,889.7
199,500.0
Monterola, Capital
751,379.7
1,583,889.7
(10,500.0)
Nevado, Capital
4,248,892.7
6,335,558.8
Accum Depn Dragon Fruit
Soriano, Capital
6,503,031.8
Partners Equity
Total Partners Equty
1,648,447.5
(146,382.4)
716,152.5
(107,422.8)
262,500.0
(39,375.0)
210,000.0
(31,500.00
44 | P a g e
3,627,780.0
1,502,065.1
608,729.7
223,125.0
178,500.0
5,125,048.2
11,084.5
7,882,470.6
December 31,Year 5
2,346,500.8
11,084.5
December 31,Year 4
11,084.5
3,627,780.0
196,875.0
537,114.5
1,369,309.9
7,893,555.1
1,648,447.5
210,000.0
(65,625.00
262,500.0
(179,038.0)
716,152.5
(279,137.6)
5,136,132.7
3,627,780.0
210,000
572,922.1
1,435,687.5
2,357,585.3
1,648,447.5
(212,760.0)
716,152.5
9143,230.4)
262,500.0
(52,500.0)
210,000.0
2,124,446.3
8,497,785.1
6,140,199.8
2,787,630.6
2,787,630.6
11,150,522.3
6,014,389.6
3,445,533.6
3,445,533.6
3,445,533.6
13,782,134.5
5,888,579.4
157,500.0
2,124,446.3
2,787,630.6
3,445,533.6
(52,500.0)
2,124,446.3
2,787,630.6
13,782,134.5
168,000
2,124,446.3
11,150,522.3
(42,000.0)
8,497,785.1
45 | P a g e

Statement of Comprehensive Income
For the Following Period Ended
Sales
0
April 30, Year 1
Cost of Goods Sold

0
March 31, Year 1
Gross Profit
0
February 28, Year 1
Gain on Agricultural Produce

0
January 31,Year 1
Total Income
Operating Expense
Taxes & Licenses
Tools Expenses
Clearing Cost
Pre-Operating Expenses
4,952.6
39,125.0
24,648.0
10,000.0
10,000.0
11,620.0
4,952.6
36,125
4,952.6
39,125.0
4,952.6
38,125.0
Less:
Depreciation Expense
Income Tax (Expense)/Benefit
Income before Tax
Total Expenses
(70,241.9)
30,103.7
(100,345.6)
(100,345.6)
(28,7854.3)
12,323.3
(41,077.6)
(41,077.6)
(30,854.3)
13,223.3
(44,077.6)
(44,077.6)
(30,154.3)
12,923.3
(43,077.6)
(43,077.6)
Loss on Spoilage
Comprehensive Income
46 | P a g e

May 31, Year 1
June 30, Year 1
July 31, Year 1
531,433.0
(528,777.3)
528,777.3
531,433.0
(528,777.3)
528,777.3
0
0
September 30, Year 1
0
0
August 31, Year 1
65,839.5
531,433.0
66,839.5
4,952.6
531,433.0
39,125.0
4,952.6
38,125.0
4,952.6
39,125.0
4,952.6
4,952.6
(44,077.6)
(44,077.6)
12,923.3
(43,077.6)
(43,077.6)
(30,854.3)
13,223.3
(44,077.6)
(44,077.6)
319,889.6
(137,095.6)
456,985.2
(74,447.8)
320,589.6
(137,395.6)
457,985.2
(73,447.8)
2,655.7
13,223.3
(30154.3)
2,655.7
(30,854.3)
47 | P a g e

554,223.0
(554,223.0)
554,223.0
(554,223.0)
554,223.0
February 28, Year 2
528,777.3
(554,223.0)
557,010.3
January 31, Year 2
528,777.3
(528,777.3)
557,010.3
December 31, Year
(528,777.3)
0
557,010.3
November 30, Year 1
0
531,433.0
557,010.3
October 31, Year 1
531,433.0
557,010.3
92,852.8
557,010.3
96,002.8
531,433.0
62,553.5
17,261.0
531,433.0
65,839.5
18,578.9
26,036.0
66,839.5
18,578.9
(112,901.1)
4,952.6
(143,405.0)
444,109.2
4,952.6
(83,919.7)
413,605.3
(133,232.8)
2,787.3
(73,447.8)
473,090.6
(124,081.6)
310,876.4
2,787.3
(74,447.8)
457,985.2
(141,927.2)
289,523.7
2,787.3
456,985.2
(137,395.6)
331,163.4
2,655.7
(137,095.6)
320,589.6
2,655.7
319,589.6
48 | P a g e

554,223.0
(528,777.3)
528,777.3
(528,777.3)
528,777.3
June 30, Year 2
554,223.0
(554,223.0)
531,433.0
May 31, Year 2
(554,223.0)
0
531,433.0
April 30, Year 2
0
557,010.3
March 31, Year 2
557,010.3
70,181.5
531,433.0
69,131.5
4,952,6
531,433.0
70,181.5
4,952,6
557,010.3
94,952.8
4,952,6
557,010.3
96,002.8
18,140.2
(76739.9)
18,578.9
(77,79.8)
454,693.2
2,655.7
(115,880.3)
453,643.2
(136,408.0)
2,655.7
(117,369.0)
441,130.0
(136,093.0)
318,285.2
2,655.7
439,641.3
(132,339.0)
317,550.2
2,787.3
(131,892.4)
308,791.0
2,787.3
307,748.9
49 | P a g e
528,777.3
(528,777.3)
528,777.3
(528,777.3)
528,777.3
531,433.0
(528,777.3)
528,777.3
November 30, Year 2
528,777.3
(528,777.
0
531,433.0
October 31, Year 2
(528,777.
0
531,433.0
September 30, Year 2
0
531,433.0
August 31, Year 2
531,433.0
531,433.0
96,002.8
531,433.0
69,131.5
531,433.0
70,181.5
18,578.9
531,433.0
69,131.5
4,952,6
531,433.0
70,181.5
4,952,6
(76,739.8)
4,952,6
(77,789.8)
454,693.2
4,952,6
(76,739.8)
453,643.2
(136,408.0)
2,787.3
(77,789.8)
454,693.2
(136,093.0)
318,285.2
2,655.7
(77,789.8)
453,643.2
(136,408.0)
317,550.2
2,655.7
453,643.2
(136,093.
318,285.2
2,655.7
(136,093.
317,550.2
2,655.7
317,550.2
50 | P a g e
554,223.0
(7,397,8888.7)
7,397,888.7
(8,940,138.7)
8,940,138.7
8,985,063.0
(8,940,138.7)
8,940,138.7
December 31, Year 5
(554,223.0)
0
8,985,063.0
December 31, Year 4
0
7,436,563.0
December 31,Year 3
557,010.3
8,985,063.0
27,167.0
8,985,063.0
27,204.0
1,268,269.5
7,436,563.0
26,619.0
1,207,875.2
557,010.3
1,067,670.1
(1,466,171.0)
125,810.2
(1,405,813.7)
7,518,892.0
125,810.2
(1,258,773.6)
7,579,249.3
(2,255,667.6)
125,810.2
(117,369.0)
6,177,789.4
(2,273,774.8)
5,263,224.4
44,924.3
439,641.3
(1,853,336.8)
5,305,474.5
44,924.3
(131,892.4)
4,324,452.6
38,674.3
307,748.9
51 | P a g e

Statement of Cash Flows
6,472,556.1
(1,094,289.1)
7,397,888.7
December 31, Year 2
2,658,247.7
(989,970.5)
December 31, Year 1
Cash received from customers

(653,054.5)
Operating Activities
Cash expenses
(1,853,336.8)
3,875,5551.8
(1,607,033.9)
(1,648,447.5)
1,422,227.1
(582,966.1)
Purchased Lighting Equipment
(716,152.5)
(2,162,226.3)
Income Tax Paid

Cash provided by Operating Activities
Construction of Concrete Posts
(262,500.0)
Investing Activities
Construction of Office and Houses
(210,000.0)
0
(3,917,214.6)
(2,837,100.0)
1,515,000.0
(41,662.9)
1,515,000.0
Purchased Dragon Fruit Plants

Cash used by Investing Activities
Financing Activities
Cash investment by partners
Cash provided/used by Financing Activities
100,127.1
100,127.1
(3,917,214.6)
Net Cash Flow
58,464.3
Cash withdrawal of partners
Cash, beginning
100,127.1
Cash, ending
52 | P a g e
4,450,262.8
December 31, Year 4
December 31, Year 5
(1,295,436.5)
8,940,138.7
8,940,138.7
(2,255,667.6)
5,431,284.7
5,389,034.6
(1,235,079.2)
(2.273,774.8)
(2,631,612.2)
(2,652,737.3)
2,757,422.4
(2,631,612.2)
(2,162,226.3)
2,778,547.5
(2,652,737.3)
2,288,036.5
5,125,048.2
7,882,470.6
2,346,500.8
5,125,048.2
58,464.3
2,346,500.8
C. Projected Financial Performance
Break-even Point
53 | P a g e
The company with projected dragon fruit production of 82,581.60 kg which is far
beyond the break-even point of 7,385.7 kg will be generating high profit and profit ratio
and will have a substantially low risk of operating with a net loss.
Return on Investment
In the agriculture industry, the average required return of investors is 18%.

Dragon Fruit Industry, in relation to the projected annual return on investment, proves to
be more profitable compared to other agricultural business. This high return on
investment implies that each asset of the company is properly utilized to generate profit
and maximize the wealth of the owners.
Payback Period
54 | P a g e
The table above shows that after 2.34 years, the cash inflows from operation
have equaled the partners capital outlay and that future cash inflows are all returns on
their investment.
Net Present Value
In computing the present value factor, the company used 18 % discount rate
which is the agriculture industry average rate of return.
The positive net present value of the company implies that the investment is
really profitable and that investing in this business is a good decision with favorable
outcome.
X.
Socio-Economic Impact
Ignite Dragon Fruit Farm, in investing in this industry, will help in increasing the
current agricultural export of the country that can improve the wealth of the country.
Higher export for our country means the total income of the country also becomes
higher. Additional jobs will also be available that will reduce the unemployment rate of
55 | P a g e

the country especially in Pangasinan. The wealth of Pangasinan will also be raised
because of taxes from the business. And, idle lands in Burgos Pangasinan will become
productive with this dragon fruit farming.
The societal benefits of the business include healthier living for the consumers of
the product, wider knowledge about the benefits and nutrients that this fruit can give
especially to those with illness that are seeking for nutritious fruit to mitigate their illness
or maintain their health, and higher availability in the market of this limited product.
XI.
Conclusion of the Study

After thorough study, we conclude that investing in dragon fruit farming industry
is feasible and highly beneficial not only to the investors but also to economy, market
participants, and overall society. The high profitability and the still growing business
opportunities for the industry based on this study proves that organic dragon fruit farming
is really the new money-crop of the agriculture sector of the business industry in the
Philippines.
Appendix
Health benefits of dragon fruits
Dragon fruit is a good natural source of anti-oxidants which help to prevent the dangers
of free radicals which can cause cancer and other undesirable health detriments.
It is reach in vitamin C.
The fruit has a small amount of fats which are mostly the healthy mono-unsaturated fats
as, of course, they are not processed in any way and therefore are none of the
dangerously unhealthy trans-fats seen in most junk food and processed foods because
of the many small seeds on edible part the fruit.

Dragon fruit is rich in fibers that help in the digestion of food and in detoxifying harmful
chemicals in the colon.
56 | P a g e
Dragon fruit help to lower blood glucose levels in type 2 diabetes. Studies also suggest
that the the glucose found in Dragon fruit aids in controlling the blood sugar level for
diabetes patients.
Dragon fruit helps to control cholesterol level. Dragon fruit is also rich in flavonoids that
are known to have favorable effects against cardio related disease.

Dragon fruit boosts immune system.
Dragon fruit promotes healing of wounds and cuts.
Dragon fruit improves appetite.
Dragon fruit improves eye sight.
Dragon fruit can aid in weight reduction.
Dragon fruit improves memory.
ARTICLE OF PARTNERSHIP
OF
IGNITE DRAGON FRUIT FARM
KNOW BY ALL MEN BY THESE PRESENTS:

That, we the undersigned, all of legal age and residents of the Philippines has agreed to
form a General Partnership under the terms and condition herein after set forth and subject to
provisions of existing laws of the Republic of the Philippines.
AND WE HEREBY CERTIFY
Article I. That the name of the partnership shall be Ignite Dragon Fruit farm.
Article II. That the principal office of the partnership shall be located at San Pascual, Burgos,
Pangasinan.
Article III. That the names, citizenship, and residence of the partners are as follows:
Name
Citizenship
Residence
Crishell C.Fernandez
Filipino
#340 Matalava, Lingayen, Pangasinan
Jeanette M. Monterola
Filipino
Poblacion, Dasol, Pangasinan
Filipino
250 Malued, Dagupan City
Regine A. Soriano
Filipino
112 Palaris St., Navatat Basista
Article IV. That the terms for which said partnership is to exist __ years from the recording of
the Securities and Exchange Commission.
Article V. That the purposes for said partnership to exist are as follows:
1. To increase the production of dragon fruit in the country especially in Pangasinan;
2. To conduct business related to dragon fruit farming;and
3. To conduct events that will expose dragon fruit in Pangasinan.
57 | P a g e

Article VI. That the capital of this partnership shall be One Million Five Hundred Fifteen
Thousand, Philippine Currency and Land worth Three Million Six Hundred Twenty Thousand
Seven Hundred Eighty contributed by partners as follows:
Name
Crishell C. Fernandez
Regine A. Soriano
Property Contributed
Cash
Cash
Cash
Land
Amount Contributed
PhP 505,000
Php 505,000
PhP 505,000
PhP 3,627,780
Article VII. That the partnership profits and losses shall be initially divided as 12% interest on
beginning capital and pro rata among the partners on the remainder for the first two years of
operation and equally thereafter.
Article VIII. That the partners will be serving as the governing board that will be performing the
final strategic decisions of the company and shall have the right to inspect the books of the
company at the reasonable business hour.
Article IX. That the firm shall be under the management of all the partners and as they shall be
charge of the management affairs of the partnership.
Article X. That the partners undertake to change the name immediately upon receipt of notice
or directive from the Securities and Exchange Commission that another partnership, corporation
or person has acquired the prior right to the use of that name or that the name has been
declared misleading, deceptive, confusingly similar to a registered name, or contrary to public
morals, good customs and public policy.
IN WITNESS WHEREOF, we have hereunto set our hands this day ____ of month, year at
______, Philippines.
Crishell C. Fernadez
TIN
TIN

TIN
Regine A. Soriano
TIN
ACKNOWLEDGEMENT
58 | P a g e

Republic of the Philippines
City of Dagupan
Before me, a Notary Public for and in Dagupan city, Philippines, this ___ day of ___________,
personallycame and personally appeared the following persons with their Community Tax
Certificates as follows:
Name
Crishell C. Fernandez
Regine A. Soriano
CTC#
Date
Place Issued
Known to be me, the same person who executed the FOREGOING

ARTICLE OF PARTNERSHIP, and they acknowledged to me that the same is their voluntary
act and deed.
WITNESSED MY HAND AND SEAL on the date first above written.
Name of the Legal Counsel
References
Ms. Editha Dacuycuy, Owner of Refmad Dragon Fruit Farm - Contact no. +639106926302
Evaluation Of Light Bulbs And The Use Of Foliar Fertilizer
During Off-Season Production Of Dragon Fruit pdf file by Leonardo T. Pascua, Maura Luisa S.
Gabriel, Marcial Gabriel and Miriam E. Pascua
IFRS amendments to PAS 41 and PAS 16 from ey.com/IFRS issue 84/July 2014
The Philippine Organic Act of 1902 Official Gazette of the Republic of the Philippines
DOST article written by Gleza Rodrigo and Love Grace Campano, ILARRDEC
59 | P a g e

Bureau of Agricultural Statistics BAS
CSI, Magic, Nepo, Robinsons purchasing supervisors
http://www.pinoybisnes.com/agribusiness/dragonfruitproductionguide/
http://tastylandscape.com/2013/07/30/howtogetdragonfruitcactustofruit/
http://ilarrdec.mmsu.edu.ph/welcome/news/26/
http://www.mb.com.ph/newinkangkonganddragonfruit/
http://www.medicalhealthguide.com/articles/dragonfruit-healthbenefits.htm
https://www.facebook.com/DragonFruitFarmVictoriaTarlac
https://businessdiary.com.ph/7595/dragon-fruit-pitaya-production-guide/
http://www.bar.gov.ph/digest-home/digest-archives/80-2005-3rd-quarter/4480-julsep05-
dragon-fruit
http://www.philstar.com/agriculture/2013/03/03/915047/dragon-fruit-production-big-incomeearner-mmsu
60 | P a g e

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Kingfisher School of Business and Finance

IGNITE DRAGON FRUIT FARM

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

Hylocereusundatus (Pitaya blanca) has red-skinned

Hylocereuscostaricensis (Pitaya roja) has red-skinned

Hylocereusmegalanthus (Pitaya amarilla)

Ignite Dragon Fruit Farm will be

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

And after years of

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

Efficient production of dragon fruit using the latest methods/techniques that

improves annual yield per hectare

Pangasinan making the farm free from flood

improves yield rate

Premium price of the product compared to other fruit

creams, vinegar etc.

meet the markets demand

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

The countrys existing dragon fruit farms and plantations

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

B. Vision and Mission

nutritious organic dragon fruits

the consumers demanded

D. Company/Business Name and Logo

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

Source: Bureau of Agricultural Statistics BAS

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

The graphical illustration of percentage distribution of the countrys agricultural exports

Percentage Distribution of Philippine Agricultural Exports Market Destinations, 2004-2010

Japan - 14%; 14%

Netherlands - 11%; 11%

Source of basic data Bureau of Agricultural Statistics (BAS)

C. Fernandez, J. Monterola, M. Nevado, R. Soriano

Kingfisher School of Business and Finance

C. Fernandez, J. Monterola, M. Nevado, R. Soriano