agro enterprise plan

7/29/2019 agro enterprise plan

1/16


2/16

Talaytay Communal Irrigation System Multi-Purpose Cooperat

Business Plan for Agricultural Trading Proje

Page of

Table of Contents

1. Executive Summary2. Business Description

2.1Current Situation and Future Outlook2.2Mission2.3

Vision2.4Business Objectives

2.5Major Strategies2.6Key Officers2.7Technical Support2.8The Board of Directors

3. Marketing Aspects3.1Market Overview3.2Market Segment and Growth Potentials3.3Target market3.4Supply and Demand Analysis


3/16



Page of

1. Executive SummaryThe agricultural input trading of the Talaytay Communal Irrigation System Multi Purpo

Cooperative (TCISMPC) started two years ago. In 2010, the cooperative was able to acce

agricultural loans from the Department of Agrarian Reform and Department of Agricultu

Through the Agribusiness and Agricultural Development (AAD) Component of the Agrari

Reform Infrastructure Support Project III, the cooperative was granted with P 250,000.00. Th

fund was used for corn production for three cropping seasons. The cooperative was a

granted with P 75,000.00 from the Livelihood, Enterprise and Agricultural Developme

(LEAD). This fund was used to establish the swine production.

After the successful production cycles, for both projects, the cooperative finally decided

consolidate the funds and improve the agro-enterprise model by expanding its capital baproject reach; improving storage facilities and engaging institutional markets in the province

The Agricultural Input Trading requires P 700 000 broken down as follows:


4/16



Page of

2. Business Description

TCISMPC is currently engaged in collective buying-and-selling, lending and retaili

businesses. It procures farm inputs in bulk; lend them to farmers and collectively sell t

produce to local market. It also provides emergency loan to its members. Finally,

operates a retail store, situated at Paleg, Dinalungan, Aurora that sells consumer goods

members and the community in general. The members receive patronage refund a

interest on share capital derived from the operations of said businesses. A commissio

based store keeper manages the daily operation of the store.

Below is the internal and external environment that affects the Agricultural Input Tradi

in the ARC and in Dinalungan, Aurora.


5/16



Page of

TCISMPC provides lending, retailing, training, production, marketing and provident

services for its shareholders.

Ang Talaytay Communal Irrigation MPC ay isang pampinansyal na

institusyon na pag-aari at pinamamahalaan ng mga magasasaka na mayprograma sa pagpapautang, pagtitinda, pagsasanay, pang-agrikulturang

produksyon, pagsasapamilihan at probidensyal na serbisyo.

TCISMPCs envisions a viable cooperative operated by shareholders with improved quaof life.

Ang Talaytay Communal Irrigation MPC ay isang matatag na kooperatiba


6/16



Page of

The TCISMPC core management team is manned by seasoned leaders with proven tra

records and accomplishments on their fields, namely:

1. Francis N. Saludez, ManagerMr. Saludez is a graduate of Bachelor of Science in Agriculture from Central Luz

State University (CLSU), Science City of Muoz, Nueva Ecija. As an agriculturist,

has worked with the International Rice Research Institute, Los Baos, Laguna. Af

his stint at IRRI, he is now employed as agricultural technician with the Municip

Agricultural Office of Dinalungan, Aurora. He works with TCISMPS as Manager o

call-basis and during weekends. He regularly attends management meetin

training programs and organizational activities. He has been a Manager

TCISMPS for 1 year.

2. Cresencia N. Alamani, Treasurer


7/16



Page of

TCISMPC is currently governed by the following Board of Directors:

1. Mamerto C. Serra, Chairperson

Director Serra is a fourth year level, Bachelor of Science in Agriculture from CLSScience City of Muoz, Nueva Ecija. He is also the secretary of Paleg IA. Mr. Ser

has been with the Paleg IA and TCISMPC for a considerable time. Aside from

engagement with the farmers sector, he is also an active church leader

Jehovahs Witnesses. Mr. Serra is recognized by the community, as a farm

leader with high integrity and religiosity. He has been the Chairperson of t

Board for three years.

2. Noel S. Bahillo, Vice ChairpersonDirector Bahillo is a farmer leader for 1 year Prior to his assumption as Vi


8/16



Page of

7. Rolando Hidalgo, DirectorDirector Hidalgo is an active parliamentarian. He was able to finish two years

college education in Mount Carmel College. He has served as Director for two

years. He has actively participated in basic and advanced management traini

courses and organizational activities.

3. Marketing AspectsCorn production remains a profitable venture. In a national scale, from 2002 to 201

volume of production increased from 4.3 to 6.7 million tons, while farmgate pric

also increased from P 6 to P 12. Profitability, within the same period, jacked up

100% from P 5,000 to P 15,000 per hectare. Cost per hectare covered cash, non-ca

and imputed costs (see Annexes for details). In Aurora, corn production is mo


9/16



Page of

Within the Paleg ARC, only few of corn growers are not members of TCISMPC. T

corn production of TCISMPC, from November 2010 to April 2012, covering

average of 27.33 hectares per cropping season was successfully implementeThroughout the project duration, TCISMPC financed the technical and financial nee

of 46 corn growers in the ARC. These farmers represent majority of corn growers

the ARC. Corn production in the ARC is dominated by corn growers financed a

supported by TCISMPC.

The following are the features of the Agricultural Input Trading.


10/16



Page of

To reach the desired quality and volume of produce the following strategies will

employed:

1) Use of production protocol;2)

On-season farming;3) Formation of production clusters;

4) Selection of good borrowers;5) Improvement of storage facility;6) Adoption of good agricultural practices (GAP);7) Peer pressure and support; and8) Creation of policies, systems and procedure for the project.

Corn will be procured based on prevailing farm gate prices in the locality


11/16



Page of

Board of DirectorsTCISMPC

DA / DTI Representatives(Marketing & Technical Support)

DARPO/DARMO R

(Organizational Suppor

Project ManagerTCISMPC

Bookkeeper

Treasurer

Loan and Marketing Officers

Warehouse In-Charge


12/16



Page of

5. Financial Aspects

Income Statement

TCISMPC net surplus increase by more than 200%, from P28,000 to P73,000, for the ye

2010 and 2011.

Current Year Previous Year

2011 2010

REVENUE

Income from credit operation P 29,444.41 P 1,448.65

Income from consumer operation 82,427.20 40,377.65

Other Income 9,269.00 29,900.00

TOTAL REVENUE 121,140.61 71,726.30

Less: Operating Expenses

Honorarium 7,300.00 16,300.00

Profesional Fee 2,000.00 2,000.00Office Supplies - 5,162.00

Freight 8,416.00 -

GA/Meeting Expense 7,000.00 1,380.00

Travel and Transportation 4,450.00 8,250.00

Taxes and Licenses 2 200 00

STATEMENT OF OPERATIONS

For the year ended December 31, 2011

(with Comparative Figures from CY 2010)


13/16



Page of

Balance Sheet

Total assets of TCISMPC increased by 160%, from P 260,000 to 436,000, for the peri2010 to 2011. This increase was due to increase on loan exposure, donation of fa

animals and implements and increase in inventory of store.

Current Year Previous Year

2011 2010ASSETS

Current Assets

Cash on hand P 73,148.42 P 108,550.45

Accounts Receivable 14,141.00

Loans Receivable 181,981.38 101,857.01

Merchandise Inventory 68,399.20 33,739.00

Current Assets 323,529.00 258,287.46

LESS: Allowance for Bad Debts 6,710.00

TOTAL CURRENT ASSETS 316,819.00

Fixed AssetsEquipment:

Weighing scales 5,520.00 500.00

Farm Equipment and Tools 76,500.00

Farm Animals 35,000.00

STATEMENT OF FINANCIAL CONDITION

As of December 31, 2011

(with comparative figures from CY 2010)


14/16



Page of

For the three cropping seasons, the project will earn a net surplus of P 22,000.

For the initial 3 cropping seasons, P 600,000 capitalization will increase by 13% equivale

to additional assets of P 76,000.

Revenue

Interest 53,730.00

Service Fee 18,000.00

Gross Revenue 71,730.00

Less: ExpensesHonorarium 45,000.00

Utilities & Supplies 4,500.00

Total Expenses 49,500.00

Net Surplus 22,230.00

Cash 667,230.00

Loans Receivable 9,000.00

TOTAL ASSETS 676,230.00


15/16



Page of

Below is the sequence of activities from preparatory phase until the completion of the fi

cropping season. Succeeding cropping seasons will commence after the review and planni

session conducted after each cycle.

Activities2012 2013

O N D J F M A M J

1.0 Preparatory Activities

1.1 consultation with project stakeholders

1.2 preparation of project proposal

1.3 presentation of proposal to the BOD

1.4 finalization of project concept

1.5 submission of project proposal

1.6 review/approval of proposal1.7 cooperators & project staffs meeting

1.8 signing of MOA

1.9 PSP preparation/approval on corn production


16/16

ANNEX 1: Loan Portfolio for 3 years

Month 4 Month 8 Month 12 Month 16 Month 20 Month 24 Month 28 Month 32 Month 36 DES

BORROWERS

Cummulative borrowers 120 180 180 300 360 360 480 540 540 Total No. of

New borrowers 60 60 60 60 60 60 60 60 60 60 Ave. No. of B

5,400,000.00 Total Loan P

Collection ( in Peso)

month 4 597,000.00 - - - - - - - -

month 8 - 597,000.00 - - - - - - -

month 12 - - 597,000.00 - - - - - -

month 16 - - - 597,000.00 - - - - -

month 20 - - - - 597,000.00 - - - -

month 24 - - - - - 597,000.00 - - -

month 28 - - - - - - 597,000.00 - -

month 32 - - - - - - - 597,000.00 -

month 36 - - - - - - - - 597,000.00

Total Collection 597,000.00 597,000.00 597,000.00 597,000.00 597,000.00 597,000.00 597,000.00 597,000.00 597,000.00 5,373,000.00 Total Princip

Outstanding Balance (.05% of gross) 27,000.00 Total Princip

Interest Income @ 3%/mo 17,910.00 17,910.00 17,910.00 17,910.00 17,910.00 17,910.00 17,910.00 17,910.00 17,910.00 161,190.00 Total Interes

Service Fee @ 1 % of loan 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 54,000.00 Total Service

23,910.00 23,910.00 23,910.00 23,910.00 23,910.00 23,910.00 23,910.00 23,910.00 23,910.00 215,190.00 Total Reven

CBU retention @ 2 % 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 108,000.00 Total CBU re

Savings deposits @ 1 % 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 54,000.00 Total savings

Total Principal Collected 597,000.00 597,000.00 597,000.00 597,000.00 597,000.00 597,000.00 597,000.00 597,000.00 597,000.00 5,373,000.00 Total Princip

15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 Total Honora

1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 Total Utilities

622,410.00 622,410.00 622,410.00 622,410.00 622,410.00 622,410.00 622,410.00 622,410.00 622,410.00 5,601,690.00 Net Cash

Net cash 22,410.00 22,410.00 22,410.00 22,410.00 22,410.00 22,410.00 22,410.00 22,410.00 179,280.00 Total SurplusLoan Portolio for next season 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00 -

Talaytay Communal Irrigation System Multi-Purpose Cooperative

YEAR 1 YEAR 2 YEAR 3

Documents

agro enterprise plan