FEASIBILITY STUDY

ON
AGRI-BUSINESS
Agri-Gr8
FARM
SUPPLY
PROPONENTS:
Marites Bello
Jobelle Asuncion
Joy Kimmie Colita
Ericka Mae Ramil
Crislen Comillas
Joane Silvania
Princess Joyce Discion
Geraldine Balderama
INTRODUCTION
The Philippines is the 8th 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 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 have enough
funds to use so they often borrow
from banks.
 Therefore, the proponents decided
to put-up an Agri-Business of farm
supplies wherein 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.
 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 operation of the business.

ORGANIZATIONAL AND
MANAGEMENT ASPECT
 ER SH I P
O F O W N
F O R M
Agri-Gr8 Farm Supply will be
established as a sole proprietor
form of business.
ROLES AND RESPONSIBILITIES
Owner Managers Responsibility(ies):
Manages or performs different task such
as ordering, receiving, storing and selling
farm supplies, keeping records of
customers on account basis, issuing
materials and supplies, prepares and give
wages to laborer.
Responsible in handling the money
throughout the circulation of operation.
 Checkthe inventory on a frequent basis and
provides an ear to customers regarding their
comments and suggestions.

Engaged directly to the operation of the

business.
Laborers Responsibility(ies):
Warehouse men

Job Description:
Physically, emotionally, and mentally fit.
Can carry heavy items.
Male
Proficient in driving and repairing delivery
truck
Salaries:
Php 300.00 per day
Required No. of laborer:
2
 ORGANIZATIONAL
CHART

OWNER-MANAGER

LABORER 1 LABORER 2

Figure 1.
ORGANIZATIONAL CHART
COLLECTION MANAGEMENT
Five Cs of
Credit
The five Cs of credit:
1. Character- refers to a borrowers
reputation or track record for repaying
debts.
2. Capacity- measures a borrowers ability to
repay a loan by comparing income against
recurring debts and assessing the
borrowers debts -to- income (DTI) ratio
3. Capital- Lenders also consider any capital
the borrower puts towards a potential
investment been a large contribution by
the borrower decreases the chance of
default.
4. Collateral- 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.

5. Conditions- such as the implied interest rate

to ensure that the borrower will pay their
debts immediately to avoid additional monthly
payment of interest.
 MENT
SS ESS
A
RISK
STRENGHT
Affordable Prices
High quality of products
Very accessible to the customers

WEAKNESS
Limited capital
Easy to dissolve
Manager- owner provides everything and shoulders all
responsibilities in the overall business operation.
OPPORTUNITIES
Business Expansion

THREATS
Competitors
Fortuitous events
Pests
 MARKETING ASPECT
RESEARCH AND METHODOLOGY
INTERVIEWS
SURVEY
RESEARCH
MAPPING
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.
7 Sitios of Cabiraoan:
1. Capadeco
2. Abbot
3. Turkia
4. Alimudin
5. Nanaruman
6. Cabillangan
7. Masaksak.
Land Area (8,774 hectares )

Residential; 15%

Commercial; 5%

Forest Land; 50%

Agricultural; 30%

Figure 2.
DIVISION OF LAND AREA
Major Economic
Activity

Fishing; 1% Others; 4%
Business; 5%
Employed; 10%

Farming; 80%

Figure 3.
 Demand Analysis
PRODUCT TOTAL DEMAND
RICE (semi-annually)
Seeds: (1 bg/hectare)
Wet Season (Inbrid)
1,843 bgs
40kls = 1 bg
Dry Season (Hybrid)
1,843 bgs
18kls = 1 bg
Fertilizers (12 bgs/hectare) 22,116 bgs
Herbicides (1 lt/hectare) 1,843 lt
Pesticides (1/2lt/hectare) 922 lt
Mollucides (1 lt/hectare) 1, 843 lt
YELLOW CORN (annually)
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
 SUPPLY ANALYSIS
TARGET MARKET
RICE QUANTITY PERCENTAGE 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:
1,580/8 198 lt 12.53% 126 lt
 MA RK ET
TAR GE T
SH AR E

The proponents target market share is

8% of the total demand for the year

2015.
PROJECTED SALES
Rice Seeds
PRODUCTS UNITS PRICE/UNIT SALES

RICE SEEDS:

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
Fertilizer
s

FERTILIZERS:
FERTILIZERS: UNITS PRICES/UNIT
PRICES/UNIT SALES
SALES

Basal16-20-0
Basal 16-20-0(2
(2bags)
bags) 295
825.00
825.00 243,375.00
243,375.00

Basal14-14-14
Basal 14-14-14 (2
(2bags)
bags) 295
295
1000.00
1000.00 295,000.00
295,000.00

BasalUrea
Basal Urea46-0-0
46-0-0(2
(2bags)
bags) 295
295
788.00
788.00 232,460.00
232,460.00

Sidedress
Side dressUrea
Urea46-0-0
46-0-0(2
(2
295
295
788.00
788.00 232,460.00
232,460.00
bags)
bags)

Side dress 16-20-0 (1 bag) 147 825.00 121,275.00

Side dress 16-20-0 (1 bag) 147 825.00 121,275.00

Top dress 46-0-0 (3 bags) 442 788.00 348,296.00

Top dress 46-0-0 (3 bags) 442 788.00 348,296.00

TOTAL 1,472,866.00
TOTAL 1,472,866.00
Pesticides
Herbicides
Molluscides
PESTICIDES; UNITS PRICE/UNIT SALES

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 1,7325.00
TOTAL 38,325.00
MOLLUSCIDE:

Bayluscide 147 812.00 119,364.00

TOTAL SALES FOR RICE/
1, 909,989.00
CYCLE
Corn Seeds

CORN SEEDS: UNIT PRICE/UNIT SALES

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
UNIT PRICE/UNIT SALES
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 CORN/
1,114,107.00
YEAR
M A RK E
T IN G S T
RATEGY
Pricing strategy

Cash Basis

The selling price of the farm inputs offered will be based

on the concept of keystone pricing.
Formula:
Retail Price = (Purchase Price) / (100 % MU %)

The established mark up percentage is 20%.

Pricing
Strategy
On Account Basis

The selling price of the farm inputs offered sold on
account will also be based on keystone pricing.

This means that the concept of Keystone Pricing is
being adapted, the only one that will vary is the Mark
up percentage and an interest rate will be added.

The established mark-up percentage for on account
basis is 25% and an interest rate of 3% monthly.

PLACE STRATEGY

The proposed
business
will be located
within the target
market.
COMPETITVE POSITION
Nearest farm
supply from
the target
market

Affordable
price

The products
are payable
in cash or in
kind
 COMPARATIVE PRODUCT
PRICING
Agri-Gr8 Agri-Gr8 On Other Other
PRODUCTS Cash Basis Account Establishme Establishme
Price Basis Price nt CBP1 nt CBP2

RICE SEEDS:

NSIC 2-2-2
1,375.00 1,686.00 1,400.00 1,550.00
(40kls/sck)

RC-18 (40kls/sck) 1,375.00 1,686.00 1,400.00 1,500.00

RC-82 (40kls/sck) 1,375.00 1,686.00 1,400.00 1,550.00

2-3-8 (40kls/sck) 1,375.00 1,686.00 1,400.00 1,550.00

1-2-2 (40kls/sck) 1,375.00 1,686.00 1,400.00 1,500.00

SL-8H (18kls/sck) 4,750.00 5,826.00 4,800.00 4,800.00

Bigante Plus 1,437 1,763.00 1,450.00 -

 Agri-Gr8 Agri-Gr8 On Other Other
CORN SEEDS:
Cash Basis Account Establishme Establishme
(9kls/bg)
Price Basis Price nt CBP1 nt CBP2
P-3774 R 4,500.00 5,520.00 4,600.00 4,900.00

P-3774 Y R 4,500.00 5,520.00 4,600.00 4,900.00

P-4097 R 4,500.00 5,520.00 4,600.00 4,900.00

P-4097 YR 4,500.00 5,520.00 4,600.00 4,900.00

NK-8840 BTGT 4,500.00 5,520.00 4,600.00 4,900.00

NK-6410 BTGT 4,500.00 5,520.00 4,600.00 4,900.00

FERTILIZERS:

(50kls/bg)
Swire 16-20-0 825.00 1,012.00 830.00 820.00

Philpos 16-20-0 834.00 1,027.00 850.00 900.00

Sunrise Planters 16-
825.00 1,012.00 830.00 820.00
20-0
Sunrise Planters 14-
1,000.00 1.226.00 1,020.00 1,020.00
14-14
Urea 46-0-0 788.00 966.00 820.00 790.00
 Agri-Gr8 Agri-Gr8 On Other Other
PESTICIDES: (1L) Cash Basis Account Establishme Establishme
Price Basis Price nt CBP1 nt CBP2

Cymbush 350.00 - 350.00 370.00

Magnum 350.00 - 350.00 350.00

Brodan 400.00 - 450.00 450.00

HERBICIDES: (1L)

Clear-Out 250.00 - 280.00 263.000

T-8 275.00 - 300.00 290.00

P-Max 288.00 - 300.00 300.00

MOLLUCIDE: (1L)

Byluscide 812.00 - 850.00 900.00

 IBU TI ON
DI STR

The business will go direct selling to:

Directly sells to
Agri-Gr8 FARMERS
 G R A M
T I N G PR O
MARK E
PROMOTION AND ADVERTISEMENT

Posters
Fliers
Word of-mouth
 IB IL I T Y
ICA L F E AS
TECH N

BUSINESS PROCESS

The business operation will operate

during daytime.
The collection for the credits will be
done semi-annually on every harvest
season.
 PROPERTY, PLANT AND EQUIPMENT

ITEMS DESCRIPTION FUNCTION UNIT PRICE PER UNIT TOTAL COST
It is where the
LAND Residential land business will be 10m x 50m 300/ sqm 150,000.00
put up.
This will serve as
the main
STORAGE One storey building establishment
ROOM / STORE which serves as 6m x 12m 10,000/sqm 720,000.00
the store and
storage of
products.
It will be used to

DELIVERY pick-up and deliver

TRUCK/ SERVICE Suzuki Multicab Pick the farm supplies.
1 80,000.00 80,000.00
Up
Glass Display Cabinet It is where the

CABINET 100cm x 150cm products will be
1 6,500.00 6,500.00
displayed.
It will be used by

Max Furniture Office the manager and

TABLE Table (Grey) will serve as his or
1 1,499.00 1,499.00
her working area.
It will be used by

the manager and

CHAIR Camel will serve as his or
2 150.00 300.00
her working area.
TOTAL 958,299.00
 C O N O M I C
SOCIO - E
ASPECT
GOVERNMENT BENEFITS
Taxes
Permits

CUSTOMER / CONSUMER BENEFITS

Easy access
Affordable Prices
Lower interest rate

EMPLOYEE BENEFITS
Additional employment
 Office
Supplies

OFFICE SUPPLIES QUANTITY COST/UNIT TOTAL COST

Official Receipt 5 pcs 50.00 250.00

Ledger 1 pc. 100.00 100.00

Pen 1 box 50.00 50.00

Stapler 1 pc. 150.00 150.00

Staple wire 2 box 45.00 90.00

Calculator 1 pc. 300.00 300.00

Plastic Bag 10 packs 25.00 250.00

Sack 100 pcs 10.00 1,000.00

TOTAL 2,190.00
THANK YOU!