33 Page 1 FOOD PROCESSORS ASSOCIATION OF NORTHERN MINDANAO FOPANORMIN Cagayan de Oro City

Submitted to: Department of Agriculture 10 High Value Crop Development Program (HVCDP)

Prepared by:

FOPANORMIN

August 2011

Page 2
I. BASIC INFORMATION Post Harvest Facilities- Chiller, freezer and Roaster FOPANORMIN Food Processors Association of Northern Mindanao Arthur Mejia and Ruben Uy Jr. President & Past President 09276453141 fopanormin_fopanormin@yahoo.com c/o DTI 10, Cagayan de Oro City 1. Title of Project: 2. Proponent: Contact Person: Position: Mobile No: Email Ads: Address:

3. Project Duration:
Activities Proposal preparation Proposal Evaluation & Approval Acquisition Equipment Installation & Dry Run Commencement of Operation Progress reports & Monitoring Person/Agency Incharge Proponent DA DA Supplier JOKOS & Nutcracker Proponent DA 1 to 2 2 months M 3&4 2 months 1 month 1 month 1 month 5 months O 5 N 6 T 7 H 8 to 12

4. Project Location: Sealer & Weighing Scale - 1145 Sta Cecilia Phase 2, Gusa, Cagayan de Oro City ( Attached sketch Plan) Chiller & Freezer - Macasandig, Cagayan de Oro City 5. Project Cost: Php 128,500.00

Budget Requested: Php 100,000.00 Equity: Php 28,500.00

Page 3 II. Project Description

1. Rationale: FOPANORMIN Food Processors Association of Northern Mindanao is an association with members in the food processing industry. As such, some of the members are engaged in using high crop value as its main raw materials. The proponent JOKOS Industries are using fresh Calamansi fruit and The Nutcracker use raw native peanuts as its main source of raw materials. Basically storage of fresh processed products and Increase the production volume of processing to be able to sustain better quality process finish calamansi juice & peanuts product, in order to up-grade the welfare of farm high value product output, increase benefits for employees & company. 2. Objectives: To strengthen the operations and storage of fresh juices. To upgrade production facilities & equipment, to increase volume of farm purchases & production. Almost 10 to 15 farmer suppliers are also benefited. 3. Expected Output/ Impact Results (Measured Results) The table below shows the expected output/impact of the fund intervention Expected Output/Impact Results Particulars Expected Impact Result Contribution Farmers supplier Almost increase 50% of high value crop supply deliveries Proponent volume products Batch production will accommodate all orders on time and increase 100% stocks inventories. Percentage proponent performance Achieved a better performance rating to almost 50% Percentage increase in productivity 100% productivity increase percentage increase in sales Number of batch added Improved quality / appearance Product others 100% increase in sales 50% to 80% potential general batch base target. Able to top the export market and nationwide selling Strengthen employees and farmers welfare: - Able to accommodate bulk volume at a shorter period of time. - Capacity to assist farmers the basic inputs.

Page 4 4. Components & Activities

COMPONENTS Selection of Fopanormin Members ACTIVITIES Selected Jokos Industries- producer of Vitacee Calamansi juice and The Nutcracker- producer of peanut base The Nutcracker Product Provide support for the selection of facilities and drawings and cost estimate. Reviewed and evaluate the needed facilities to ensure proper usage by the beneficiaries Re validate the actual facilities performance and usage Provide adequate training support to the beneficiaries such as regular GMP, food and equipment handling safety net, sanitation and maintenance of areas , as well as the facilities.

Technical Assistance Facilities Evaluation Evaluation of Facilities Performance Technical Training

5. Beneficiaries/Recipient Main Proponent FOPANORMIN FOPANORMIN Beneficiaries/Recipients Indirect Benefited Sector JOKOS Industries - Calamansi 5 farmers The Nutcracker Homemade 10 farmers Product Raw Native Peanuts

Timetable of Activities: Schedule of Activities and DA Intervention CONSOLIDATION OF COMPONENTS EQUIPMENT BY BENEIFCIARIES SCHEDULING: COMPONENT Component 1 1. Freezer 2. Glass Chiller Component 2 1. Heavy Duty Sealer 2. Digital Weighing Scale BENEFICIARIES JOKOS INDUSTRIES VITACEE BRAND - CALAMANSI JUICES THE NUTCRACKER HOMEMADE PRODUCT THE NUTCRACKER BRAND PEANUT BASE FOOD PROCESS

Page 5 CONSOLIDATION OF COMPONENTS EQUIPMENT BY BENEIFCIARIES SCHEDULING: Activities Proposal preparation Proposal Evaluation & Approval Acquisition Equipment Installation & Dry Run Commencement of Operation Progress reports & Monitoring Person/Agency In-charge Proponent DA DA Supplier JOKOS & Nutcracker Proponent DA M 3&4 O 5 N 6 T 7 H 8 to 12

1 to 2 2 months

2 months 1 month 1 month 1 month 5 months

III.

Economic Benefits & Impact Expected Output/Impact Results PARTICULARS Additional Volume of Farm Products Purchases Better Benefits to Farmers Better Compensation to Employees EXPECTED IMPACT RESULT Increase the volume of farmer crops to 50 to 80% purchases. Transport cost of farm crop is reduced to 30% due to the capacity to buy in bulk. Increase per batch production to 50 to 80%, will result to consistent processing result to just compensation and production rating credits in terms of commission. 80% to 100% increase in the better over-all performance rating. Factory cost savings by 50% can be achieved due to consistent supplies. 50% to 80% potential general batch base target. Able to top the export market and nationwide selling Analysis of waste control management achieved due to the consistent supplies. Management better attention to control waste proper allocation awareness.

Percentage Increase Beneficiaries Performance

Number of batch added Improved quality / appearance Product Added Attention to Waste Management

page 6

IV.

Sustainability Plan 1. It is projected that production volume will increase almost 50% during the first year after the acquisition of machinery. For the peanut production volume will increase by 20% annually for year 2 and year 3. 2. Accounts receivables are equivalent to 100% of the total monthly sales. 3. Accounts payables are equivalent to a months worth of raw materials costs. 4. Raw materials inventory for a months production is stored. 5. Selling price will increase by 10% annually. 6. All expenses will increase by 5% annually excluding the utilities and LPG expense which will increase by 10%. 7. There are 26 working days in a month. 8. The net working capital amounting to Php 100,000.00 will be used by the proponent for business expansion such as mass distribution in other areas such as Cebu and Davao. Thus, this amount could not be utilized in the acquisition of the machineries and equipment needed in the production area.

Work and Financial Plan Equipment and Facilities Unit Cost Equity HVCDP Fun Required 15% 85%
5,500.00 4,000.00 9,000.00 29,500.00 20,500.00 30.000.00

Description
1. Freezer 2. Glass Chiller 3. Heavy Duty Stand Up Foot Sealer 12 Taiwan 4. Azuki Digital Weighing Scale High Kilos Total Breakdown:

Quantity

Total Project Cost

35,000.00 24,500.00 39,000.00

1 units 1 units 3 unit

1 unit

10,000.00

20,000.00

30,000.00

28,500.00

100,000.00

128,500.00

Page 7

Prepared By: Malou Tumang JOKOS Industries Ruben Uy Jr. The Nutcracker

Submitted by: Arthur Mejia Fopanormin President

Concurred by: CHEDY V. ANSALE HVCDP Coordinator

Recommending Approval ROXANNA H. HOJAS RTD for Operation

APPROVED BY: LEALYN A. RAMOS Regional Executive Director