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UNIVERSITY OF SOUTHEASTERN PHILIPPINES TAGUM-MABINI EXTERNAL STUDIES PROGRAM DON JUAN A. SARENAS CAMPUS PANTUKAN, COMPOSTELA VALLEY PROVINCE A PROJECT FEASIBILITY STUDY ON CASSAVA PRODUCTION Submitted to: Janice S. Cataag Submitted by: Melanie L. Quirol

Cassava Production

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Page 1: Cassava Production

UNIVERSITY OF SOUTHEASTERN PHILIPPINES

TAGUM-MABINI EXTERNAL STUDIES PROGRAM

DON JUAN A. SARENAS CAMPUS

PANTUKAN, COMPOSTELA VALLEY PROVINCE

A PROJECT FEASIBILITY STUDY

ON

CASSAVA PRODUCTION

Submitted to:

Janice S. Cataag

Submitted by:

Melanie L. Quirol

Jayson N. Jaron

March 14, 2012

Page 2: Cassava Production

ACKNOWLEDGEMENT

The success of this Feasibility Study cannot be truly defined

without the presence and willingness of several people who lent their

hand to help the authors. The authors are very grateful and therefore

they wanted to extent their heartfelt thanks and appreciations to the

following:

To our subject instructor, Mrs. Janice S. Cataag, for teaching us

on how to make a Feasibility study.

To Mr. John Paul Sindangan, for giving us some information on

how to make a balance sheet.

To the author’s beloved parents for their everlasting moral,

financial and spiritual support the author’s journey in making this

study.

To The author’s classmates and fellow mates for their

exchanging of ideas, encouragement and good companionship during

the frustration moments.

And to those who were not mentioned, a heartfelt thanks.

Page 3: Cassava Production

Everything would not be realized without the presence of the

almighty Father for His unending love, support, blessings and guidance

to the author’s quest of life.

CHAPTER 1

PROJECT SUMMARY

A. Name of the enterprise

JM CASSAVA PRODUCTION will be the enterprise name. JM comes

from the first letter of the proponents’ name which is Jayson and

Melanie. The proponents intended to choose this name which

symbolizes fairness in the business.

B. Location

The proposed site will be established at Purok Gemelina,

Homelot, Pangasinan, Pantukan, Compostela Valley Province. The area

is accessible to transportation facilities that are essential for the easy

flow of all the transactions of the business. Electrical power and water

supply exists in the project site.

C. Project long Range Objectives

The proponents expected that after five or more years, the

business will become more productive, could generate more income

Page 4: Cassava Production

and pursue more flour processors in the entire Philippines upon making

them one of the biggest producers of good quality of cassava.

D. Highlights of the Project

1. History

This project was built-up due to its existing demand in the

market as a substitute food in times of rice shortage.

2. Nature of the Industry

Cassava is one of the most in demand product in the local

market. Aside from being a promising substitute as staple food, it can

also divert into new products like flour and kakanins. There will be more

demand for this product because it is not only for food consumption but

it also used to cure some diseases. It can also provide employment to

individual who certainly need job.

3. Project Potential

The project has a great potential because of its many uses. It

serves as human food, as starch, and an animal ingredient in making

feeds.

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4. Investment cost

The proposed project will need the total amount of 980,285.814.

This amount will be used in purchasing raw materials, tools, equipments

and office supplies. It also includes Land rental, transportation cost,

labor and other expenses.

5. Mode of Financing

The proponent will acquire loan from the Rural Bank of

Montevista (RBM), Pantukan Branch since it facilitates credit with an

interest of 5%.

E. Major Assumption and Summary of Finding and Conclusion

1. Market Feasibility

Cassava production has an edge in terms of market to the high

demand of flour processor and other uses of this product. This product

is a promising substitute as a staple food in times of rice shortage.

Aside from the fact that there were only producer of the product since

the flour processing industry are far from the area of production.

2. Technical Feasibility

This project will follow the recommended agronomic

management practices in growing cassava. In this regard, all the

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necessary procedures and management should be followed and

applied. The production process involve land preparation, preparation

of planting materials, planting, crop protection, weeding, application of

fertilizer, harvesting and distribution.

In addition, proper care and maintenance of the farm area are

needed in order to attain higher yield. Proper amount of fertilizer and

pesticides will be given attention in order to prevent pest and diseases

infestation.

3. Financial Feasibility

The total investment of the project will be 980,285.814 of which

Php 600,000.00 will be loaned from the Rural Bank of Montevista (RBM),

Pantukan Branch with an interest of 5%. The remaining 380,285.814

will be the proponents’ investment. The collateral of this loan will be the

land title of one of the proponent.

4. Socio-Economic Feasibility

The project has a positive effect to the society as well as in the

economy as whole. It can provide financial opportunities to the

neighbouring households.

5. Management Feasibility

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Supervision and leadership are necessary to make the venture

viable. One of the proponents will assumed as the manager of the

project. He will conduct regular monitoring of activities in the farm and

will keep tracking behaviour of the project in its entire operation. He will

receive an amount of 15,000.00 every month.

The labourer does the activities in the production process. The

contractual worker will only be hired during the preparation of the site

and during harvesting period. On the otherhand, the caretaker will

serve as the regular worker in the project.

CHAPTER II

MARKET STUDY

A. Product Description

Cassava (Manihot utilissima) is locally known as “Balinghoy or

Kamoteng-kahoy”. It is a woody shrub, the root of cassava is long and

tapered with a firm homogeneous flesh encased in detachable rind

about 1mm thick, rough and brown on the outside. The flesh can be

chalked-white or yellowish. Cassava root are very rich in starch and

contain significant amount of calcium (50mg/100g) , phosphorus

(40mg/100g) and vitamin C (25mg/100g). It is cultivated as annual crop

in tropical region for its edible starchy tuberous roots as a major source

Page 8: Cassava Production

of carbohydrates. The bitter variety of Manihot is used to treat diarrhea,

headache and pain and also cooked and eaten. It is also use to treat

irritable bowel syndrome.

Indeed, cassava is the third largest source of carbohydrates for

human food consumption in the world.

B. Demand Analysis

Historical Values of the Demand of Cassava for the Past Ten Years

Year Demand %increase/decrease

2001 1,852,371.51 N/A

2002 1,815,917.88 -1.97

2003 1,784,489.5 -1.73

2004 1,876,015.44 5.13

2005 1,890,347.76 0.76

2006 2,004,668.88 6.05

2007 2,027,685.84 1.15

2008 2,047,035.36 0.95

2009 1,911,535.44 -6.62

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2010 1,967,967.84 2.95

C .Supply Analysis

Historical Values of the Supply of Cassava for the Past Ten Years

Year Supply %increase/decrease

2001 1,652,035.88 mt N/A

2002 1,625,738.73 mt -1.59

2003 1,622,241.72 mt -0.22

2004 1,640,519.58 mt 1.13

2005 1,677,563.82 mt 2.26

2006 1,756,856.13 mt 4.73

2007 1,871,137.81 mt 6.50

2008 1,941,574.59 mt 3.76

2009 2,043,719.41 mt 5.26

2010 2,101,454.16 mt 2.82

Page 10: Cassava Production

D. Demand-Supply Analysis

Year Demand Supply Gap

2001 1,852,371.51 1,652,035.88 200,335.63

2002 1,815,917.88 1,625,738.73 190,179.15

2003 1,784,489.5 1,622,241.72 162,247.78

2004 1,876,015.44 1,640,519.58 235,495.86

2005 1,890,347.76 1,677,563.82 212,783.94

2006 2,004,668.88 1,756,856.13 247,812.75

2007 2,027,685.84 1,871,137.81 156,548.03

2008 2,047,035.36 1,941,574.59 105,460.77

2009 1,911,535.44 2,043,719.41 -

132,183.97

2010 1,967,967.84 2,101,454.16 -

133,486.32

Page 11: Cassava Production

E. Price Analysis

The price will depend on the supply and demand of cassava. The

higher the demand, the lower the supply therefore the price is higher.

The lower the demand, the higher the supply therefore the price is

lower.

F. Factors affecting the Market

1. Competition

Competition is one of the factors that will affect the market. If

there will be more competitors, the production will be affected.

2. Season

Page 12: Cassava Production

Season depends upon the supply and demand of cassava. The

lower the supply of cassava, the price will increase.

G. Marketing Programs

1. The Market

The product which is cassava will be sold directly to the local

market and to the ultimate consumer.

2. Proposed Price

The proposed price of cassava will be Php 7.00 per kilo. It is

assumed to be fixed from the first year until its fifth year of operation.

3. Product Management

Harvested cassava crop will be brought to the storage house for

cleaning. It will be placed in sacks and will be transported to the

designated market outlets.

4. Distribution System

The products are handled down directly to the buyer. No

middleman involve during the marketing process. The producer will be

the one to deliver the products. Payment will be done by cash or

delivery basis.

PRODUCER

Page 13: Cassava Production

Fig.1. Distribution Channel of Cassava Production

CHAPTER III

TECHNICAL FEASIBILITY

A. The Product

The product is cassava or locally known as “kamoteng-kahoy” or

balanghoy. It is a perennial shrub which sometimes reaches the size of

all small trees. Its stems vary in color from pale to dirty white or brown

marked by numerous node formed by scar left by fallen leaves. Pale to

dark green leaves are fan-shaped with5 to 9 lobes. Roots of cassava

plant are few and swallow and some become storage roots, these are

JULU SAN MIGUEL DCORPORATION

Page 14: Cassava Production

clustered around the base of the plant and extent about 60 cm all sides.

It is for this root which contain from 15% sparely. This is cultivated

under favourable condition. A single root may weigh as 4 kilos. The

number of root per plant at harvest varies from 2 to 7 each averaging

27 cm long from 4.5 to 7.4 cm in diameter.

Cassava is essential part of diet more than a half billion people.

Cassava roots are high in calories and leaves are good source of protein

and vitamins A and B subsistence farmer have long appreciated benefit

of cultivating cassava. The plant can grow in poor soil on marginal lands

with minimal amount of fertilizer, pesticides and water because the root

can be harvested any time from 8 to 24 months after planting. They are

important safeguard against unexpected food shortage.

B .Product Process

1. Site selection

Cassava is a tropical and sub-tropical plant. It grows with more or

less evenly distributed rainfall through the year. This study will select

an open field area with clay loam soil. The selected area will not prone

to water logging. This cassava crops will be planted at rainy season.

2. Land Preparation

Page 15: Cassava Production

A total of herbicide round up will be applied at the rate of 4 to 5

hectare, ten days before land preparation.

There is no clear rule as to how many plowing or harrowing, but

it depends on the kind of soil and the intensity of weed population. In

any case, plow the soil to a depth at least 16 cm to provide good soil

conditions of the root development and better water retention in the

soil.

3. Preparation of planting Materials

In preparation of planting materials, this production will select

only fresh, mature and healthy stems. It is fresh when latex comes out

within six seconds after cutting. It is healthy when it is pest free and

diameter of stem is not less than 1.5 cm and at least 8 months old.

4. Planting

The planting distance of cassava is 50 cm between hill and 75

cm between rows with two seeds pieces/ hill and at a depth of 25 cm.

Seed pieces are laid out flat during the dry season, slanting during the

rainy season. Replanting maybe done 6-10 days after planting.

5. Crop Protection

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The cassava is infested with fish scale. The population of the pest

will increase rapidly causing yield losses reaching as high as 20%. The

most immediate form of control will be the use of chemical pesticides.

However in this production, the treat of chemical pesticides to planting

materials will be at minimal amount because this may result to a

dangerous side effect to a node. The cutting stored for more than 5

days will not be used anymore because it is already infested with pest.

6. Controlling of rodents

Clean the surrounding thoroughly and continue baiting with

chronic rodenticides to prevent the build up and increase of the

population up to 7 days before harvest.

7. Keeping weeds under control

Shallow cultivation should be done as soon as the weeds have

germinated, pass between the furrow a 60 cm wide wood or soike-

tooth harrow to control weeds. This cultivation may do two times

during the first 30 days after planting. Selective hand weeding in the

furrows should also be done in the same period to control further

growth of the weeds.

Page 17: Cassava Production

8. Fertilizer Application

Apply fertilizer based on the soil analysis. First application will be

at planting and the second application will be 2 months after planting.

9. Harvesting

Cassava is highly perishable crops. It started to deteriorate as

early as 1 to 3 days after harvest. This crop will be harvested at full

maturity which will be 7 to 8 months after planting. It will not be

harvested during heavy rain or when soil is too wet. This is because

roots will have high water content which will be difficult to store. This

may also result to low yield and poor eating quality. On the other hand,

leaving the roots long in the soil exposed them to pest.

SITE SELECTION LAND PREPARATION

PREPARATION OF PLANTING

MATERIALS

PLANTING

Page 18: Cassava Production

Fig.2. Production Process

C. Project Area

The proposed area will be located at Purok Gemelina, Homelot,

Pangasinan, Pantukan, Compostela Valley Province. It is near along the

highway. The area is 1 hectare (10, 000) and it will be rented

₱18,000.00 per year.

D. Project Location

CROP PROTECTION CONTROLLING OF RODENTS

KEEPING WEEDS UNDER CONTROL

FERTILIZER APPLICATION

HARVESTING GRADING AND SORTING

Page 19: Cassava Production

E. PLANT LAYOUT

50x70cm 50x70cm

Page 20: Cassava Production

F. Raw Materials and Supplies

Table 1. Schedule of Purchased Of Tools and Equipment

Description Unit Quantity Cost/Unit Total cost

Shovel Pcs 3 400.00 1,200.00

Knapsack

sprayer

Pcs 4 1,800.00 7,200.00

Slashing bolo Pcs 3 2,500.00 750.00

Page 21: Cassava Production

Tumbling bolo pcs 4 500.00 2,000.00

Total

₱11,150.00

Table 2. Schedule of Purchased of Office Supplies

Items Unit Quantity Cost/Unit Total cost

Ledger Pcs. 1 25.00 25.00

Journal Pcs. 1 25.00 25.00

Record Book Pcs. 3 50.00 150.00

Page 22: Cassava Production

Yellow pad Pcs. 5 18.00 90.00

Pilot pen Pcs. 10 21.00 210.00

White ink Bottle 1 19.00 19.00

Pencil Pcs. 10 7.00 70.00

Ruler Pcs. 2 10.00 20.00

Paper clips box 1 13.00 13.00

Stapler Pcs. 2 20.00 40.00

Calculator Pcs. 2 150.00 300.00

Folders Pcs. 5 5.00 25.00

Envelope Pcs. 5 4.00 20.00

Total ₱1,007.00

Table 3. Bill of Materials on Farm Shed

Description Unit Quantity Price/Unit Total CostMaterial

RequirementPost (coco lumber) 4x4x6

bdft 48 12 576

Girt 4x4x84x4x12

BdftBdft

10.6616

1212

127.92192

Top cord 2x3x8

bdft 12 12 144

Bottom cord bdft 16 12 192

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2x3x12Braces 2x3x12

bdft 4 12 48

Purlins 2x3x12

bdft 46 12 1,152

Lumber sticks 1x2x8

bdft 45.38 12 544.56

Horizontal studding

2x2x8

bdft 48.01 12 576.12

Vertical studding

bdft 42.67 12 512.04

G.I sheet gauge 31

(8ft)

Pcs. 12 260 3,120

G.I nails Kilo 1 80 80Plain G.I

sheet 3x8Kilo 2 280 560

Common nails # 4

Kilo 3 60 180

# 3 kilo 3 60 180# 2 kilo 3 60 180

Amakan 4x8 Pcs. 10 120 1,200Hollow Blocks Pcs. 175 7 1,225

Cements Bags 10 205 2,050Corrugated bars 8mm

Pcs. 22 135 2,970

Mixed sand Load 1 700 700Labor cost 5,711.174

Total Cost ₱22,228.814

Table 4. Schedule of Purchase of materials and supplies for year 1

Description Quantity

Unit Cost No. Of Application

Total cost

Page 24: Cassava Production

1. Planting materialsCassava cuttings

890 bundle

300/bundle

1 267,000

2. HerbicidesRound-up

2 galloon

1,000/gal 2 4,000

3. PesticidesBavistin 50

DF

5 Pack 240/pack 1 1,200

4. FertilizerComplete(1

4-14-14)Organic

4

20

Bags

Bags

1,300/bag

300/bag

1

1

5,200

6,000

5. Other materialsBig BasketWeighing

scale

301

Pcs.Pc.

50/pc12,500/pc

--

1,50012,500

Total Cost 297, 400

Table 5. Schedule of Purchase of materials and supplies for year 2

Page 25: Cassava Production

Description Quantity Unit Cost No. Of Applicatio

n

Total Cost

1. PesticidesBavistin 50

DF5 pack 240/pack 1 1,200

2. FertilizerComplete (14-

14-14)Organic

4

4

Bags

bags

1,300/bag

300/bag

1

1

5,2006,000

Total Cost 12,400

G. Waste Management Disposal

Page 26: Cassava Production

A propose project will provide a 6x6 m compost pit. Segregation

of garbage should be recommended. Only the biodegradable will put

on compost pit while the non biodegradable will put in sacks.

H. Labor Requirements

Table 6

Direct Labor Labor Required

Cycle Labor Cost Total cost

1. Land Preparation

PlowingHarrowingFurrowingOff-Barring

Hilling-up

ContractualContractualContractual

3MD w/ carabao3MD w/ carabao

1212

1

3,500/ha2,500/ha1,500/ha300/day

300/day

3,5005,0001,5001,800

900

2. Planting 6 MD 1 150/day 9003. Harvesting

6 MD 1 150/day 900

4. Hauling 6 MD 1 150/day 9005. Caretaker 4MD 150/day 216,0006. Office supplies

500

7. Furniture’s

2,300

8. Transportation cost

12,000

9. Management fee

1 person (manager)

180,000

Total Cost ₱426,000

Page 27: Cassava Production

Table 7. Schedule of Labor Requirement (Year 2-5)

Direct Labor Required Cycle Labor Cost Total Cost1. Land preparation

Plowing contractual

1 3,500/ha 3,500

Harrowing contractual

2 2,500/ha 5,000

Furrowing contractual

1 1,500/ha 1,500

Off-baring 3 MD’s w/ carabao

2 300/day 1,800

Hilling-up 3 MD’s w/ carabao

1 300/day 900

2. Planting 6 MD’s 1 150/day 9003. Harvesting 6 MD’s 1 150/day 900

4. Hauling 6 MD’s 1 150/day 9005. Caretaker 4 MD’s 150/day 216,000

6. Office Supplies 5007. Transportation 12,0008. Management

fee15,000/month

180,000

Total Labor Cost ₱423,900

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I. Estimated Cost of Production on Its First Year in Operation

Particular

Fixed cost

Farm building 22,228.814

Furniture’s 2,300

Direct labor 246,000

Administrative Salary 180,000

Land Rental 18,000

Tools and equipment 11,150

Total Fixed cost 479,678.814

Variable cost

Office Supplies 1,007

Materials and supplies 297,400

Electricity 10,000

Repair and maintenance 10,000

Water supply 10,000

Page 29: Cassava Production

CHAPTER IV

FINANCIAL FEASIBILITY

A. Major Assumptions

1. Land rental will be fixed for five years at ₱18,000.00

2. Management fee will be fixed for five years at ₱180,000.00

3. Office supplies will be fixed for five years at ₱1,007.00

4. The area has a capacity of 26,666 hills in one hectare with

spacing of 75cmx50cm.

5. Selling price of cassava root crop is ₱7.00 per kilo and it will be

fixed for five years of the operation.

6. Price of input requirement such as labor, supplies and materials

will be fixed for five years of operation.

7. There will be 159,996 kilos expected yield of cassava on the first

year of operation.

8. Tax is 10 percent of the net income.

9. The maturity of cassava will star on its 8th month during the first

year of operation.

JM CASSAVA PRODUCTION

Page 30: Cassava Production

Projected Cash Flow

(Year1 to Year5)

Cash flow from

operating

activity

Year1 Year2 Year3 Year4 Year5

Net Income 181,723.5 455,728.5 461,128.5 461,938.5 462,708

Depreciation - 445.76 445.76 445.76 445.76

Net cash

provided by

operating

activities

181,723.5 456,174.26 461,574.26 462,384.26 463,153.76

Cash flow from

investing

activity

-Farm building 22,228.914 -

Net cash

provided by

investing

activities

22,228.814

Cash from

financing

Page 31: Cassava Production

activities

-investment 380,285.81

4

Loan 600,000

Loan repayment 120,000 120,000 120,000 120,000 120,000

Net cash

provided by

financing

activity

860,285.81

4

Net income cash 1,019,780.5 367,174.26 341,574.26 342,384.26 343,153.76

Cash balance

beginning

0 1,019,780.

5

1,335,954.

76

1,697,529.

02

2,039,913.

28

Cash balance

end

1,019,780.5 1,355,954.

76

1,697,529.

02

2,039,913.

28

2,383,067.

04

Page 32: Cassava Production

JM CASSAVA PRODUCTION

Projected Income Statement

(Year1 to Year5)

Year1 Year2 Year3 Year4 Year5

Sales 1,119,97

2

1,119,97

2

1,119,97

2

1,119,97

2

1,119,97

2

Less:

Operating

Expenses

Tools and

Equipment

11,150

Materials

and supplies

297,400 12,400 12,400 12,400 12,400

Direct labor 246,200 246,200 246,200 246,200 246,200

Land rental 18,000 18,000 18,000 18,000 18,000

Administrati

ve salary

180,000 180,000 180,000 180,000 180,000

Page 33: Cassava Production

Expenses

Interest

Expense

150,000 144,000 138,000 137,000 136,000

Furniture’s 2,300 - - - -

Office

supplies

1,007 1,007 1,007 1,007 1,007

Transportati

on

12,000 12,000 12,000 12,000 12,000

Total

operating

cost

918,057 613,607 607,607 606,707 605,852

Net income

before tax

201,915 506,365 512,365 513,265 514,120

Less:10%

income tax

20,191.5 50,636.5 51,236.5 51,326.5 51,412

Net

income/loss

181,723.

5

455,728.

5

461,128.

5

461,938.

5

462,708

Page 34: Cassava Production

JM CASSAVA PRODUCTION

Projected Balance Sheet

(Year1 to Year5)

Year1 Year2 Year3 Year4 Year5

Current

asset

1,019,780.5 1,355,954.7

6

1,697,529.02 2,039,913.28 2,383,067.0

4

Fixed asset

Farm

building

22,228.814 22,228.814 22,228.814 22,228.814 22,228.814

Depreciation - 445.76 891.52 1,265.28 1,711.04

Total Fixed

Asset

22,228.814 21,783.054 21,337.294 20,963.534 20,517.774

Total asset 1,042,009.3

14

1,377,737.8

14

1,718,866.31

4

2,060,876.81

4

2,403,584.8

14

Liability and

owners

Page 35: Cassava Production

equity

Liabilities

-Loan 600,000 480,000 360,000 240,000 120,000

Loan

Repayment

120,000 120,000 120,000 120,000 120,000

Total liability 480,000 360,000 240,000 120,000 0

Owner’s

equity

JM’s capital 380,285.814 562,009.314 1,017,737.81

4

1,478,866.31

4

1,940,804.8

14

Add: Net

income

181,723.5 455,728.5 461,128.5 461,938.5 462,708

Total

owner’s

equity

562,009.314 1,017,737.8

14

1,478,866.31

4

1,940,804.81

4

2,403,584.8

14

Total

owner’s

equity and

liabilities

1,042,009.3

14

1,377,737.8

14

1,718,866.31

4

2,060,876.81

4

2,403,584.8

14

Page 36: Cassava Production

Financial Analysis

A. Average Rate of Return = Average net income Average net investment

= 404,645.4

1,075,940.814

= 0.38

B. Payback Period in Year = Future value

(1+r) n

Year 1 = 1,019,780.5 =894,544.30

(1.14)1

Page 37: Cassava Production

Year 2 = 1,355,945.76 =1,043,363.16

(1.14)2

Year 3 = 1,697,529.02 =1,145,783.74

(1.14)3

Year 4 = 2,039,913.28 =1,207,792.42

(1.14)4

Year 5 = 2,383,067.04 =1,237,670.27

(1.14)5

C. Break-even Volume Analysis = Total CostSelling price

Year 1 = 918,057 =131.151kgs

7

Year 2 = 613,607 =87,658.14kgs

7

Page 38: Cassava Production

Year 3 = 607,607 =86,672.43kgs

7

Year 4 = 606,707 =86,672.43

7

Year 5 = 605,852 =86,550.29

7

The above shows the break even volume analysis, which depicts

the volume to be produced that can cover all cost but without gain and

loss. The result shows the output is greater than the break even

volume through the year which indicates that the business can already

earn a profit.

Break-even Selling Price = Total Cost x Selling price

Sales

Year 1 = 918,057 x 7 = 5.74

Page 39: Cassava Production

1,119,932

Year 2 = 613,607 x 7 = 3.84

1,119,972

Year 3 = 613,607 x 7 = 3.84

1,119,972

Year 4 = 607,607 x 7 = 3.80

1,119,972

Year 5 = 605,852 x 7= 3.79

1,119,972

D. Return on Owners Investment

ROI = Net Income

Total Capital Investment

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Year 1 = 181,723.5 = 0.19

980,285.814

Year 2 = 455,728.5 = 0.46

980,285.814

Year 3 = 461,128.5 = 0.47

980,285.814

Year 4 = 461,938.5 = 0.47

980,285.814

Year 5 = 462,708 = 0.47

980,285.814

CHAPTER V

SOCIO-ECONOMIC STUDY

A. Contribution to the Government

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In the operation of the business, the government is expected to

access the business and compute the taxes. For this, 10% of the total

net income will be paid annually, environmental clearance from the

DENR and DTI permit are secured.

B. Contribution to the Household

The Cassava production can generate income not only on the part

of the business but also to those unemployed individual who certainly

need job. They can be hired as laborer in this project. The supplies of

raw materials will also be benefit since the demand for their good will

increase.

C. Contribution to the Environment

Cassava production has a positive effect to the society because it is

a beneficial firm.

CHAPTER VI

ORGANIZATION AND MANAGEMENT STUDY

A. Form or Ownership

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The project consists of two owners. Since there are two owners

then the business will be operated as partnership.

B. Organizational Chart

The manager will carefully manage all the activities in the

project. He will serve as the initiator responsible for the improvement

of the project. He will be in-charge in the production and in the

marketing aspect.

The laborers do the activities in the production process. The

contractual worker will only be hired during the preparation of the site

in planting and during harvesting period. The caretaker, on the other

MANAGER

LABORER

(CARETAKER AND CONTRACTUAL)

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hand, will serve as the regular worker in the project. They will be the

one who will take care of the products and in charge for the production

so that the buyer will be satisfied of the product.

REFERRENCES

*BUREAU OF AGRICULTURAL STATISTICS (BAR)

*DEPARTMENT OF AGRICULTURE (DA)

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*FOOD AND AGRICULTURAL ORGANIZATION

CURRICULUM VITAE

Name: MELANIE L. QUIROL

Birthdate: November 28, 1992

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Age: 19 years old

Address: Homelot, Pangasinan, Pantukan, ComVal Province

Educational Background

Elementary: Pantukan Elementary School

Secondary: Pantukan National High School

College: University of Southeastern Philippines

(DJAS Campus)

Name: JAYSON N. JARON

Age: 23 years old

Address: Homelot, Kingking, Pantukan, ConVal Province

EDUCATIONAL BACKGROUND

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Elementary: Lapu-lapu, San Isidro, Davao Oriental

Secondary: San Isidro National High School

College: University of Southeastern Philippines

(DJAS Campus)