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INTRODUCTION
The Philippines is the 8 th largest rice producer in the world. The country is also the
worlds largest rice importer in 2010. And Cagayan Valley ranks first as a corn producer while
second in producing rice in the country for the year 2013. On the same year, the share of
agriculture on the total employment in Cagayan Valley was 57.5% or 846,000 persons of
1,475,000 persons of the total employment. (Male = 596,000 persons and Female = 250,000
persons).
The chosen target market of the proponents is the farmers of Barangay Cabiraoan,
Gonzaga, Cagayan. The location is truly blessed of agricultural lands which serve as the main
source of income of all the people residing on the said location. And it is far from the public
market where they can buy farm inputs which sometimes cause the local farmers to experience
problems in purchasing agricultural inputs they need in farming. Some of our dear farmers dont
the proposed project will sell farm inputs to the local farmers of Barangay Cabiraoan in a much
affordable price. The said business is not only to generate profit but also to help our local farmers
on the said problems they are experiencing. We then aim to provide a high-quality products and
services to all the customers and to give them an easier access to farm supplies they need in
farming.
1
The proposed project shall be named Agri-Gr8 which stands for the Great economic
contribution of agriculture on the said location. Agri-Gr8 Farm Supplies will be a merchandising
type of business. Its operation will focus on buying and selling rice and corn seeds and other
farm inputs. It will be a sole proprietorship wherein the manager-owner handles the overall
2
Chapter II
ORGANIZATIONAL AND MANAGEMENT PLAN
flow of authority and manpower level requirement. It must be set up for optimum effectiveness.
To achieve these, management must be able to plan all activities for the company to become
productive and competitive industry through human resources, financial capability and new
technologies. The central idea of management is to make every action or decision help achieve a
careful chosen goal. The word management is also use to mean the group of persons called
Since the proposed business is a sole proprietor retailing type of business, the
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A. FORM OF OWNERSHIP
1. Owner Manager
Responsibility(ies):
issuing materials and supplies, prepares and give wages to the laborer.
operation.
2. Laborer
Responsibility(ies):
Warehouse men
Job Description:
4
Proficient in driving and repairing delivery truck.
C. ORGANIZATIONAL CHART
Owner - Manager
Laborer1 Laborer 2
Figure 1.
ORGANIZATIONAL CHART
D. COLLECTION MANAGEMENT
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Borrowers can pay their debts in cash or in kind, specifically rice, grains, and
corn seeds. Assurance for the collectability of receivables lies on the hand of the owner
manager. The owner will conduct first an investigation regarding on the debtor. There is a
method to be used on this which is the five Cs of credit. This method has been used by
various lenders in determining the borrowers credit worthiness. This five (5) Cs of
track record for repaying debts. Capacity measures a borrowers ability to repay a loan by
comparing income against recurring debts and assessing the borrowers debts -to- income
(DTI) ratio. Lenders also consider any capital the borrower puts towards a potential
investment been a large contribution by the borrower decreases the chance of default.
Collateral can also help the borrowers secure their loan. It gives the lender the assurance
that if the borrower defaults on the loan, such as its interest of amount of principal,
influence the lenders desires to finance the borrower.Lastly is the impliedinterest rate which
is part of the condition of loan. This is to ensure that the borrower will pay their debts right away
E. RISK ASSESSMENT
environment of a business like knowing what its edges to outrun or outwit its
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competitors or its disadvantage against those competitors or the opportunities
One of the best ways to asses a business is to use the SWOT Analysis
method. SWOT stands for strengths, weakness, opportunities and threats. This
business.
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affordable prices
limited capital
W easy to dissolve
O Business expansion.
- The business can go for palay and corn trading.
Competitors.
T Pests
lesser harvest means the harder they can pay their obligations.
8
Chapter III
MARKETING ASPECT
customer needs, wants and expectations through the goods and services of especially selected
target market which is better than the competitors. It is, as considered by many businessmen, the
lifeblood of the business operation because it involves a strategic way on how to cope up with
the needs and wants of the customers, finding opportunities regarding it, introduce and market
the product and building strong customer relationship in order to gain loyalty and patronage from
them.
This aspect includes the following topics: market analysis, demand and supply analysis,
Aside from generating profit, the main objective of the proposed project is to help the
customers have a better, easier and faster access to the products they needed in their day-to-day
activities. The proponents also aim to exceed customers expectation on the target area because
they believe that customers are the key factor to attain the goals and objectives of an
organization.
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A. MARKET STUDY
1.1. Interviews
data that will be used. We have interviewed the secretary of Barangay Cabiraoan to
get the total population of the target area, its land areas and major economic activities
of its residence. We have also interviewed businesses similar to the proposed project
Aside from that, we have also interviewed the head of the Treasury Office of
have also interviewed one of the engineers of the MPDC Office to know the expenses
constructing a one storey building. We have also interviewed the salesmen of Denise
Joy to get the exact prices for the office supplies needed in the business.
1.2. Survey
Cabiraoan to know the farm inputs they often used as well as the mode payment in
acquiring such products and other related issues related to our study.
1.3. Research
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The proponents also searched on the internet in order to obtain relevant
1.4. Mapping
Turkia. The proponents agreed to buy a vacant lot next to Mangili Sari-Sari Store
which where the proponents plan to locate the warehouse of the business.
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Agri-
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2.
MARKET DESCRIPTION
The study covered the whole barangay of Cabiraoan, one among the largest
barangay of the Municipality of Gonzaga, as the target area. The barangay is located near
the mountain of Sierra Madre and is subdivided in seven sitios namely Capadeco, Abbot,
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2.2. Land Area
Figure 2.
DIVISION OF LAND AREA
Residential; 15%
Commercial; 5%
Forest Land; 50%
Agricultural; 30%
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2.3. Demography (as of 2015)
The primary means of their livelihood is farming, specifically in rice and corn
production.
Figure 3.
OCCUPATION
Fishing; 1%
Others; 4%
Business; 5%
Employed; 10%
Farming; 80%
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3. DEMAND AND SUPPLY ANALYSIS
demand and supply thoroughly will lead to a right projection of the total quantity of each
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Seeds: (2bgs/hectare)
1,580 bgs
18kls = 2 bgs
Fertilizers: (10 bgs / hectare)
7,900 bgs
50kls = 1 bg
Herbicides: (2lt/hectare) 1,580 lt
Table 1.
TOTAL QUANTITY DEMANDED
the total demand of the target market wherein 70% (1,842 hectares) is
approximately the total land area of rice field while the other 30% (790
TARGET
RICE PERCENTAGE MARKET
SHARE (8%)
Seeds:
1,843/8 230 bgs 12.48% 147 bgs
Fertilizers:
22,116/8 2,765 bgs 12.50% 1,769 bgs
Herbicides:
1,843/8 230 lt 12.48% 147 lt
Pesticide:
922/8 115 lt 12.47% 74 lt
Mollucides:
1,843/8 230 lt 12.48% 147lt
CORN
Seeds:
1,580/8 198 bgs 12.53% 126 bgs
Fertilizers
7,900/8 988 bgs 12.51% 632 bgs
Herbicides: 198 lt 12.53% 126 lt
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1,580/8
Table 2.
TOTAL QUANTITY SUPPLIED
The proponents divided the total demand of the target market into
the same business. In order to get the total supply we divided the total
up with 12.5% (329 hectares). Since the project cannot supply yet the 12.5
%, the proponents decided to supply the 8% (211 hectares) for the first
The business cannot supply the total demand of the target market. Therefore
the proponents decided to supply 8% of the total demand of the target market which is
approximately 211 hectares. Out of these 211 hectares, 70% (147 hectares) covers the
rice field and the 30% (64 hectares) of it is the corn field.
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CASH SALES:
NSIC 2-2-2 (1 sack) 59 1,375.00 81125.00
RC-18 (1 sack) 22 1,375.00 30,250.00
RC-82 (1 sack) 15 1,375.00 20,625.00
2-3-8 (1 sack) 22 1,375.00 30,250.00
1-2-2 (1 sack) 7 1,375.00 9,625.00
SL-8H (18kls) 15 4,750.00 71,250.00
Bigante Plus (5kls) 7 1,437.00 10,059.00
TOTAL 253,184.00
FERTILIZERS:
Basal 16-20-0 295 825.00 243,375.00
Basal 14-14-14 295 1000.00 295,000.00
Basal Urea 46-0-0 295 788.00 232,460.00
Sidedress Urea 46-0-0 295 788.00 232,460.00
Sidedress 16-20-0 147 825.00 121,275.00
Topdress 46-0-0 442 788.00 348,296.00
TOTAL 1,472,866.00
PESTICIDES;
Cymbush 27 350.00 9,450.00
Magnum 40 350.00 14,000.00
Brodan 7 400.00 2,800.00
TOTAL 26,250.00
HERBICIDES:
Clear-Out 84 250.00 21,000.00
T-8 63 275.00 17,325.00
TOTAL 38,325.00
MOLLUSCIDE:
Bayluscide 147 812.00 119,364.00
TOTAL SALES FOR RICE/
1, 890,964.00
CYCLE
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CORN SEEDS:
CASH SALES:
P-3774 YR 32 4,500.00 144,000.00
P-3774 R 6 4,500.00 27,000.00
P-4097 YR 25 4,500.00 112,500.00
P-4097 R 6 4,500.00 27,000.00
NK-8840 BTGT 38 4,500.00 171,000.00
NK-6410 BTGT 19 4,500.00 85,500.00
TOTAL 567,000.00
FERTILIZERS:
Basal 16-20-0 379 825.00 312,675.00
Basal Urea 46-0-0 253 788.00 199,364.00
TOTAL 512,039.00
HERBICIDES:
Clear- Out 42 250.00 10,500.00
T-8 32 275.00 8,800.00
P-Max 32 288.00 9,216.00
Mower 21 312.00 6,552.00
TOTAL 35,068.00
TOTAL SALES FOR
1,114,107.00
CORN/ YEAR
Table 3.
PROJECTED SALES
A. MARKETING STRATEGY
1. PRICING STRATEGY
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1.1. Cash Basis
The selling price of the farm inputs offered will be based on the
Formula:
price.
adapted, the only one that will vary is the Mark up percentage and an
on selling price.
2. PLACE STRATEGY
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The business will be establishing in front of the Barangay Hall of
the target market. The proponents believed that this is the best location of
the business because it has a dryer beside it that will be very useful for the
business. The said location of the proposed business will also be at the
The customers can also save more money, effort and time because
customers. The proposed business will also be the first and only farm
supply business that is why the proponents are expecting a good response
3. COMPETITVE POSITION
strategies that will hook customers from the competitors; these marketing
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The proposed business will be the nearest farm supply from the
target market; we will also offer a much affordable price to the customers.
The business will also offer the farmers the opportunity to pay on
account basis with a lower interest rate or in kind wherein they can use
their harvested rice seeds to pay their debt. This will be one of the
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PURCHASE
PRODUCTS
PRICE/UNIT
(50kls/bg)
RICE SEEDS:
Swire 16-20-0 825.00 1,012.00 830.00
NSIC 2-2-2 (40kls/sck) 1,100.00 820.00
Philpos 16-20-0 RC-18 (40kls/sck)
834.00 1,027.00 1,100.00
850.00 900.00
RC-82 (40kls/sck) 1,100.00
Sunrise Planters 16-20-0 825.00 1,012.00 830.00
2-3-8 (40kls/sck) 1,100.00 820.00
1-2-2
Sunrise Planters 14-14-14 (40kls/sck)
1,000.00 1.226.00 1,100.00
1,020.00 1,020.00
SL-8H (18kls/sck) 3,800.00
Urea 46-0-0 788.00 966.00 820.00
Bigante Plus (5kls) 1,150.00 790.00
PESTICIDES:CORN (1L) SEEDS:
Cymbush Hybrid 350.00 - 3,600.00
350.00 370.00
Magnum FERTILIZERS: 350.00 - 350.00 350.00
Swire 16-20-0 (1 lt ) 660.00
Brodan 400.00 - 450.00
Philpos 16-20-0 (1 lt ) 670.00 450.00
HERBICIDES: (1L) Sunrise Planters 16-20-0 (1 lt ) 660.00
Sunrise Planters 14-14-14(1 lt ) 800.00
Clear-Out 250.00 - 280.00
Urea 46-0-0 630.00 263.000
T-8 HERBICIDES:275.00 - 300.00 290.00
P-Max Clear-Out (1 lt288.00
) - 200.00
300.00 300.00
T-8 (1 lt ) 220.00
Mower 312.00 - 320.00
P-Max (1 lt ) 230.00 320.00
MOLLUCIDE: (1L) Mower (1 lt ) 250.00
Bayluscide PESTICIDES:812.00 - 850.00 900.00
Cymbush (1 lt ) 280.00
Magnum (1 lt ) 280.00
Brodan (1 lt ) 320.00
MOLLUSCIDE:
Bayluscide (1 lt ) 650.00
Table 4.
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Table 5.
LIST OF PURCHASE PRICE
The list of purchase price above is the prevailing purchase prices obtain base on
our interview on the different establishments of farm supplies. Most of them have
suppliers from Isabela and that almost all of them have the same supplier.
Note:
The selling price of each product on cash basis is computed as follows:
Example.
25
SP = 1, 375.00
The selling price of each product on on- account basis is computed as follows:
Example.
after 5 months.
Step 3. Add the total interest to the selling price to get the final price.
SP = 1, 466.00 + 220.00
SP = 1,686.00
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4. DISTRIBUTION
Figure 4.
FARM INPUTS DISTRIBUTION
5. MARKETING PROGRAM
Marketing program will be done to attract customers and even the customers of the competitors.
This is also done to inform the public or the market the existence of the business.This includes
the business and the products and services to be offered. This also
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Figure 5.
POSTER
Through fliers.
the public.
Chapter IV
TECHNICAL FEASIBILITY
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A. PRODUCT TO BE MARKETED
Farm inputs. The business will sell various farm inputs and supplies such
as seeds, rice seeds to be exact and fertilizers and other chemical used in
farming.
B. BUSINESS PROCESS
The business operation will operate during daytime. The collection for the credits
C. STORE LAYOUT
Figure 6.
FRONT
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Figure 7.
BACK
Figure 8.
ISOMETRIC
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Figure 9.
FLOOR PLAN
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D. PROPERTY, PLANT AND EQUIPMENT
The following property, plant and equipment specified below will be required on the
said project.
TOTAL 958,299.00
Table 6.
PROPERTY, PLANT AND EQUIPMENT
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Suzuki Multicab Pick Up Max Furniture Office Table (Grey)
100cm x 150cm
E. SUPPLIES
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OFFICE SUPPLIES QUANTITY COST/UNIT TOTAL COST
TOTAL 2,190.00
Table 7.
OFFICE SUPPLIES
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Chapter V
SOCIO - ECONOMIC ASPECT
A. GOVERNMENT BENEFITS
The government will benefit on the taxes and permits paid by the business. These
taxes and permit will increase the revenue of the government. Hence, the funds of the
government will continue to increase. The benefits desired from the business will become
an additional fund which is very useful for they use these funds to support projects, build
infrastructures and other government expenditures for the development and security of
The farmers on the target area will have an easy access of the farm supplies
because the proponents will bring the market closer to them. They can also have enough
supply during planting season. Aside from that, they will have convenience in getting
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C. EMPLOYEE BENEFITS
The business will also provide additional employment for the un-employed
residence of Barangay Cabiraoan, specifically those men who do not have any land to
cultivate.
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APPENDIX
37
QUESTIONNAIRE
Personal Information (OPTIONAL)
NAME: _____________________________ AGE: ______ SEX: _____
1. What specific rice seeds do you often used? How many bags/hectares?
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11.
12.
13. What herbisides? How many liters /hectares?
14.
a. Herbicide ______ g.
b. Clear Out ______ h. Savetime ______
c. P-MAX ______ i. Speed fire ______
d. Triple 8 ______ j. If others please specify:
e. Root out _____ ________
f. Clear Max ______ k.
15.
16. What variety of hybrid corn do you often used?
17.
a. P-3774 YHR _______ g. NK-8840 BTGT ______
b. P-4097 YHR _______ h. NK-6410 BTGT ______
c. P-3774 R _______ i. DK-6919 G ______
d. P-3774 YR _______ j. Bioseed RR _____
e. P-4097 R _______
f. P-4097 YR _______ k.
l. o.
39
j.
k.
l.
m.
n.
o.
p.
q.
r.
s. Survey Result
t.
v. N
u. Rice Seeds o. of w. %
Person
x. ( Inbrid and y. z.
Hybrid )
aa. NSIC 2-2-2 ab. 6
ac. 40%
4
ad. RC-18 ae. 2
af. 15%
4
ag. RC-82 ah. 1
ai. 10%
6
aj. 2-3-8 ak. 2
al. 15%
4
am. 1-2-2 an. 8 ao. 5%
ap. SL-8H aq. 1
ar. 10%
6
as. Bigante Plus at. 8 au. 5%
av.
aw.
ay. N
ax. Pesticides o. of az. %
Person
ba. Cymbush bb. 5
bc. 36%
8
bd. Magnum be. 8
bf. 55%
7
bg. Brodan bh. 1
bi. 9%
5
bj.
bk.
bl.
bn. N
bm. Herbicides o. of bo. %
Person
bp. Clear-Out bq. 9
br. 57%
1
bs. Triple 8 bt. 6
bu. 43%
9
bv.
bw.
by. N
bx. Molluscide o. of bz. %
Person
ca. Bayluscide cb. 1 cc. 100
60 %
cd.
ce.
cf.
ch. N
cg. Corn Seeds o. of ci. %
Person
cj. P-3774 ck. 4
cl. 25%
R 0
cm.P-3774
cn. 8 co. 5%
YR
cp. P-4097 cq. 3
cr. 20%
R 2
cs. P-4097
ct. 8 cu. 5%
YR
cv. NK-
cw. 4
8840 cx. 30%
8
BTGT
cy. NK-
cz. 2
6410 da. 15%
4
BTGT
db.
dd. N
dc. Herbicides o. of de. %
Person
df. Clear-Out dg. 5
dh. 33%
3
di. Triple 8 dj. 4
dk. 25%
0
dl. Mower dm. 4
dn. 25%
0
do. P-Max dp. 2
dq. 17%
7
dr.
ds.
dt.