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PROJECT PROPOSAL

INCOME GENERATING PROJECT

I. BASIC INFORMATION

Project Title :DRAGON FRUIT PRODUCTION

Project Location : Cagayan State University, Gonzaga, Cagayan

Project Type :Income-Generating Project

Project Proponent : Mr. Quirino S. Jara, Coordinator, Special Projects
Dr. Genoveva C. Sapla, Extension Coordinator
Dr. Calixto B. Alicay, Research Coordinator

Implementing Agency :Cagayan State University, Gonzaga, Cagayan

II. BACKGROUND/RATIONALE
Dragon Fruit (Hylocereus undatus) production is gaining more and more recognition as
an important crop. It is a nutritious fruit with a variety of uses. The fruit pulp can be eaten fresh
and can be made into various valuable processed products. The fruit possesses medicinal
properties: it is known to prevent colon cancer and diabetes, neutralizes toxic substances such
as heavy metals, reduce cholesterol and high blood pressure. It is also reported to control high
sugar levels, prevent cancer and bleeding, and promote dental health. It is rich in vitamin C,
phosphorous and calcium which help to develop strong bones, teeth and skin. The fruit is
considered a “health fruit”(ICBF, 1992; Morton,1987).
A Dragon Fruit ProductionEnterprise has been demonstrated to provide viable source of
food, income and employment to growers locally and abroad. It could be an asset to backyard
growers as well as entrepreneurs of medium and large scale plantations. It is a fast return
perennial fruit crop with production in the second year after planting, and full production
within five years. It was also noted to sustain production up to twenty years provided desirable

it is then a good candidate crop for the establishment of organic agriculture and integrated and diversified organic tree. establishment of an Integrated and Diversified Organic Farming System and the nation’s battle cry to mitigate climate change through its National Greening Program. However. . Dragon fruit is an ideal crop for dry areas but differs from other cacti species which are of dessert origin because it requires sufficient rainfall ranging from 1. according to observation on the agro-physical characteristics of Dragon Fruit.cultural management practices are applied. available sources of information on fertilizer management and multiple cropping schemes integrating dragon fruit to other crops in location specific areas are still unavailable. about 4-5 million pesos could be earned per hectare. hence a part of the production area will be utilized for simple research activities. considering the climatic condition of Cagayan.540 mm per year to sustain its productivity. CSU Gonzaga and other neighboring communities can be ideal for dragon fruit production. Besides. according to varied sources is a kind of fruit crop that can be grown organically and can be produced in a partially shaded area. the level of risk in producing the crop is lesser and to some extent more tolerant to adverse weather conditions as compared to the production of other high-value commercial crops.730 – 2. On these premises. profit is substantial and within 4-5 years. Anent to this. The campus is undergoing intensive development in Organic Agriculture. Although the initial investment is relatively high. since dragon fruit.based farming system in support to the campus thrust on agricultural modernization. It can grow in varied types of soil provided the plantation area is well drained.

Should there be good promise for Dragon Fruit processing.III. the immediate market outlet will be the faculty and students and within the municipality of Gonzaga. Pilot the utilization of sub-marginal areas for income generation and maximum utilization of land resources. Since the project starts with a micro scale of only two hundred (200) hills. Specifically. MARKETING ASPECT The marketability of Dragon Fruit in the locality is expected to be very high because of limited number of commercial producers of the product. According to survey. OBJECTIVES Generally. hence. the project aims to establish a Dragon Fruit Production Project for income generation. Ana and Sta. Teresita and commercial centers within the province as the case maybe. Establish Production area of Dragon Fruit in a multiple cropping schemes. When there will be surplus volume of production that cannot be bought by the usual clients (faculty. IV. products will be advertised and sold to the neighboring municipalities of Sta. production will be continuously increased and shall be processed at the CSU-DOST Product Development and Training Center.00 pesos per kilo. Sta. buyers do not feel the abundance of the product because the price remains as high as 100. 2. marketing strategies and expected outlets shall be thoroughly examined. In the future. students and the community).00 to 150. it seeks to: 1. there are only 3 farm owners cultivating an aggregate area of around 4 hectares of Dragon Fruit in the municipalities of Gonzaga. . Ana. production is expected to rise. Nevertheless. Teresita and Sta.

the plantation will be established at the stony sub- marginal flat area behind the administration building of the campus. the area will be properly cleared before .Since the prospect is to develop production area for dragon fruit in a multiple cropping scheme. Matured cuttings will be taken from a healthy mother plant just after fruiting season. TECHNICAL ASPECT The management and technical considerations in Dragon Fruit Production do not require sophisticated technology.  Site Selection.  Selection of Planting Materials and Nursing of Cuttings. Since the area to be used is sub-marginal. Use of seeds entails longer time to grow and produce fruit.V. The entire segment of the stem should be taken preferably 20-60 cm in length. Cuttings will be pre-rooted or hardened in the nursery one month before planting in the field.Dragon Fruit could be grown in wide range of soil types provided it is well-drained.5 mm of rainfall to sustain good growth and productivity. It is a matter of following the desired procedure recommended by experts plus personal knowledge and interest shall ensure the success of the endeavor. It requires around 1.Since one objective of the project is to demonstrate the productivity of selected crops in sub-marginal areas. Technical considerations  Climatic Requirements.7-2.  Land Preparation and Weeding.  Soil Requirements. Hence. organic fertilizer will be applied to patch up the lacking amount of organic substances in the soil.Dragon Fruit (Hylocerius undatus). Besides.Use of asexual propagation is most practical and cheapest way of propagating dragon fruits. the most ideal soil type is rich in organic matter and slightly acidic. although a member of the family Cactaceae requires adequate water because they originated from tropical rainforest unlike other cacti which are of desert origin. the plant is open pollinated and the progeny may not come true to type unlike cuttings that there is 100% guarantee that your plant will carry the characteristic of the mother plant. it is very ideal to be grown in most parts of the Philippines including the province of Cagayan. However.

Plowing and harrowing in between posts to be planted with desirable intercrop will follow to prevent growth of weeds.The type of climate in Cagayan is very conducive in the production of Dragon Fruit.A 4”x4” x 2 meter concrete post will be used as trellis. The 50 cm length of the post will be buried to the ground so that it will be strong enough to hold around 100 kgs of lateral vines and to withstand adversities brought about by typhoons and heavy winds.  Preparation of Planting Hole and planting .  Irrigation. It is expected that thick dense mass of lateral stems will increase to around 130 during the ensuing years. laying out the plantation area and placing of posts. hence.  Trellising. intermittent irrigation will only be done when there will be prolonged dry . One Kilogram of organic fertilizer mixed with top soil will be placed at the hole properly incorporated and loosened before planting. Only outer leader vines are allowed to climb the post to ensure vigorous growth. structural pruning should be undertaken by removing the tip of the main stem to allow growth of new shoots to grow laterally and climb at the rubber tire to form an umbrella like structure of vines where flowers will emanate and develop into fruits. The plants could develop around 30 productive lateral stems between its first and second year. Once the vines reaches the top of the post just above the rubber tire previously placed. Pre-rooted/hardened cuttings will be planted one in each hole and watered immediately to prevent newly planted cuttings from wilting.The plants grow fast and climb in the post in a short period. A desirable rubber tire braced with strong iron bar will be anchored at the top end of the post to serve as agent in forming an umbrella like structure of the hanging vines. hence. hence. Excessive number of growing lateral stems will increase the advent of pest and diseases. tying loosely to the post should be undertaken. Damaged on the growing vines may occur if they will fall on the ground.  Managing Growing Plants. desirable number of lateral stems only should be maintained to ensure vigorous growth.One hole of 20 cm wide and 30 cm depth will be dug within the four walls of post for planting. Distance of trellis will be 3 m x 3 m to accommodate 110 plants per hectare.

Initial amount of fertilizer to be applied basally before planting will be 1 kg.Fruits can be harvested 30 days after fruit set or 40-50 days after flowering. vermi compost and 50 grams of urea (46-0-0) mixed with ammonium phosphate (16-20-0) 3 months after planting.  Fertilizer Application .Dragon Fruit. It is expected that there will be deformed or split fruit.  Pests and Disease Control. application of desirable fungicide will be administered. requires judicious application of fertilizer for higher yields.Dragon Fruit is a kind of crop which is comparatively free of pest and diseases. Prevalence of common insects like ants. hence. they will be processed at the Product Development and Training Center as added income. spell or when the need arises most specially during the reproductive period of the plants. mealy bugs and the like will be controlled through the application of common insecticide. If there will be advent of common diseases like stem rot and anthracnose. . like any other crops. harvesting will be done 50 days after flowering to allow the fruit attain its maximum sweetness and weight.  Harvesting. Kind and amount of fertilizer to be applied in the ensuing months will be based on crop stand. However. scale insects. if fruits will be sold within the school populace and within the municipality.

90 51.00 7.035.15 1.61 6.200.774.30 2917.00 2.25 578.00 1.260.41 303.200.00 2.00 1.63 289.648.00 551.389.00 Cuttings @ 15.00 1.06 Phosphate (16-20- 0) @ 900.86 1.100.50 275.200.00 per piece  vermi compost(50 4.63 289.00 262. ESTIMATED MATERIAL COST Item of Expenditure 1st Year 2nd Year 3rd Year 4th Year 5th Year Total  Dragon Fruit 12.00 per bag  Ammonium 900.81 22.000.041.661.00 7.00 1.381. FINANCIAL ASPECT A.386. 12.09 8.VI. per bag) @ 300. 1.00 per bag  Complete Fert.457.00 945.95 4.467.467.200.00 per pack  Fungicide 250.000.646.61 6.22 15.25 1.00 1.00 per bag  Urea (46-0-0) @ 1.973.00 525.76 7.75 2762.69 .161.00 1.50 275.88 1.00 262.00 .778. .00 2.00 per pack  Insecticide @ 1.648.800.42 (Super Bloom) @ 1.398.323.15 1.00 per liter 500.260.42 (Dithane) @ 1.76 (14-14-14) @ 1.81 607.520.41 303.88 1.52 kgs.76 1.381.323.000.000.000.093.00 per bag  Foliar Fertilizer 250. .00 992. .

. .000.00 .00 .102. .00 .00 1.575.000.00 1.250. .01  Marketing TOTAL 16.000.00 7.64 Application  Control of pest and 750.75 2.000.050.157.95 4.215.50 1.431.205.100.315.315.205. 5.00 2.00 and placing of posts: 20 MD  Preparation of 2.278. .050.00 2.00  Digging of Holes 5.06 3.01 11. .25 2.01 7950.500.58 11. 500.51 5525. .95 902.00 1.102.894. .63 1.64 management 262.00 9.00  Laying-out 500.00 859.08 .75 2.00 materials.000.525.250.215.00 1. .119.50 819. . .50 1.50 57135.00 per MD Item of Expenditure 1st year 2nd Year 3rd Year 4th Year 5th Year Total  Clearing 1.51 5.00 1.800 sq.050.000.25 578. meter) MD.00 1. planting and replanting: 5 MD  Fertilizer 1.00 2.639.431. 1.500.00 1.40 diseases  Weeding and 2.00 2.00 787.875.00 planting holes including application of vermi compost: 10 MD  Hauling of planting 1. .81 607.653.000. B.00 .842.63 1.Man Day 250.038. 2.50 551.26 cultivation  Water 1.82  Harvesting 500.000.31  Prunning 1.000. 1.25 2. . .500.00 2.00 11.00 .051. ESTIMATED LABOR COST (1.157. .76 10712.

00 100.500.00 12.250.590.00 2.00 240.000.00  5 pcs Basket Tray @ 200.250.00 2.00 2.500.00 1.00 2.00 1.00 240.00 each 240.00 5.500.00 Concrete Post. 20 yrs.000.00 500.590.00 500.00 2.00 100.590.200. 4”x4”x2m. @ 250.500.000.00 each  10 pcs Wooden 2 yrs.950.00  200 pcs.250.00 Crate @ 250.00 240. 5.00 motorcycle tire @ 10.00 27.00 100.00 240.  FIXED COST Life Depreciation Cost Item of Expenditure Total Span 1st Year 2nd Year 3rd Year 4th Year 5th Year  200 pcs.500.00 1.500. Material Cost and price of fruit will increase @ 5% per year .5 4th year: 14 5th year: 16 kgs Price per kilo of Dragon Fruit = 100.250.00 1. 1.00 100. 500.00 Iron Bar @ 120 each 500.590.500.00 each Total 5.00 500.00 each  1 Unit Knapsack 5 yrs.00 Sprayer @ 2. 10mm 20 yrs.590. 2.00 1.00 5.000. 1.500.000.00  40 pcs. 100.250.00 1.00 500. Used 20 yrs.00 6.00 1.00 Basic Assumptions: Production per hill per year in kilos (200 posts) 1st year: 6 2nd year:8 3rd year: 12.00 5.00 1 yr.000.00 Labor Cost.00 5.250.00 1.00 1.

457.49 Total Cash Expenses 132.284.22 None Cash Expenses Depreciation 27.713.75 Cost of Labor 57.00 Total revenue 1.116.22 Net Income 1.276.478.950.576.VII.00 Less: Expenditures Cash Expenses: Cost of Materials 52.308.78 Net Profit Margin 87 % .950.08 Miscellaneous Expenses 16.135.276.00 Total None Cash Expenses 27.00 Total Expenses 160.90 Contingency (5%) 6.428. COST AND RETURN ANALYSIS COST AND RETURN ANALYSIS Dragon Fruit Production (5 years) Revenue Sales of Fresh Dragon Fruit 1.713.

00 324.307.730.960.00 7035. PROJECTED INCOME STATEMENT Dragon Fruit Production Year 1 Year 2 Year 3 Year 4 Year 5 Sales: Sales of Fresh Dragon Fruit 120.55 Depreciation 5.536.00 TOTAL CASH EXPENSES 49.241.590.00 1.00 275.09 8.590.842.00 168.553.83 30.100.00 248.17 358.90 Cost of Labor 16.423.50 3.774.386.000.76 7.150.128.625.270.939.447.58 11.66 1.590.886.53 NET PROFIT MARGIN 59% 85% 90% 91% 92% .080.28 1.128.00 11.00 7.646.590.000.625.639.161.92 29.50 Miscellaneous 3000.52 Contingency (5%) 2.000.016.00 TOTAL SALES 120.960.47 NET INCOME 70.00 143.88 3.00 7.00 5.590.126.500.685.000.00 275.875.00 5.00 3.00 9.00 324.00 903.00 5.00 168.00 26.00 388.00 Less: Expenditures Cost of Materials 22.278.00 3.00 5.472.08 294.00 24.182.00 388.

472.00 903.500.28 1.842.108.875.182.00 3.00 9.00 fruit 120. PROJECTED CASH FLOW Dragon Fruit Production 1 2 3 4 5 CASH INFLOW Sales: Sales of Fresh Dragon 120.625.00 168.035.90 Cost of Labor 16.00 1.76 7.100.52 Contingency (5%) 2.25 1.00 388.00 275.00 18.000.080.08 780.25 CLOSING BALANCE 76.234.128.632.00 225.963.278.00 21.126.50 3.357.960.680.000.320.00 3.349.08 780.632.639.00 168.144.625.00 225.00 324.88 3.66 1.00 7.108.307.55 TOTAL CASH OUTFLOW 43.50 Miscellaneous 3.357.00 479.09 8.00 324.00 388.83 24.00 479.58 11.128.00 7.833.651.960.646.78 .000.00 7.161.150.00 TOTAL CASH INFLOW CASH OUTFLOW Cost of Materials 22.016.00 275.774.47 CAS SURPLUS (A-B) OPENING BALANCE 0 76.386.92 23.000.000.320.00 11.

D. Extension Coordinator CALIXTO B. Special Projects GENOVEVA C. D. JARA Coordinator.  The production endeavor is environment friendly and helps mitigate climate change. Ph. ALICAY. QUERUBIN IGP Coordinator Approved: FLORANTE VICTOR M. D. Ph. SAPLA.VIII. Campus Executive Officer Note: Status: Establishment of the plantation area is around 95% completed. Ph.QSJ .  Promote the utilization of sub-marginal areas for productive endeavor. Research Coordinator Recommending Approval: EMELYN S. Prepared By: QUIRINO S. BALATICO. SOCIO-ECONOMIC AND ENVIRONMENTAL IMPACT  Demonstrate adoptable technology in Dragon Fruit Production as on-farm laboratory for students and other stakeholders.