PAMANTASANG NG LUNGSOD NG MAYNILA

(University of the City of Manila)

Intramuros, Manila

COLLEGE OF BUSINESS AND MANAGEMENT

Agricultural and Industrial Economics
ECON 108

A Feasibility Study on the Cultivation of Sugarcane

Submitted by:
ALDANIE, Alexandrea P.
ARGUELLES, Arvin Phillipe V.
PAED, Mary Chael C.
SANTIAGO, Charmaine Lewis P.
TOLEDO, Jennilyn C.
TOLENTINO, Camille Angel A.

Submitted to:
Dr. Sonia Manlangit

AY 2016 - 2017
 PAMANTASAN NG LUNGSOD NG MAYNILA
(University of the City of Manila)
Intramuros, Manila

COLLEGE OF BUSINESS AND MANAGEMENT

Economics Department

R E C O M M E N DATI O N

This research is entitled:

A Feasibility Study on the Cultivation of Sugarcane

Was prepared and submitted by Alexandrea P. Aldanie, Arvin Phillipe V. Arguelles, Mary

Chael C. Paed, Charmaine Lewis P. Santiago, Jennilyn C. Toledo, and Camille Angel A.

Tolentino in partial fulfillment of the requirements for the subject ECON 108, Agricultural

and Industrial Economics has been found satisfactory and hereby recommended for Oral

Examination.

___________________________
DR. SONIA MANLANGIT
Adviser
 PAMANTASAN NG LUNGSOD NG MAYNILA
(University of the City of Manila)
Intramuros, Manila

COLLEGE OF BUSINESS AND MANAGEMENT

Economics Department

APPR OVAL S H E E T

The feasibility study entitled “BAHAY TUBO; A FEASIBILITY STUDY ON THE

CULTIVATION OF SUGARCANE” prepared and submitted by Aldanie, Alexandrea P.,
Arguelles, Arvin Phillipe V., Paed, Mary Chael C., Santiago, Charmaine Lewis P.,
Toledo Jennilyn C., Tolentino, Camille Angel A. in partial fulfillment of the requirement
for the degree of BACHELOR OF SCIENCE IN BUSINESS ECONOMICS has been
examined and hereby recommended for approval and acceptance.

______________________
Dr. Sonia F. Manlangit
Feasibility Study Adviser

Approved by the COMMITTEE ON ORAL DEFENSE with the rating of _______.

__________________________ _____________________ _____________________

BERNARD R. LETRERO, IE, MBA BENEDICT DC.DAVID, PhD MEDINA F. ORLEANS, CPA
Oral Defense Panel Member Oral Defense Panel Member Oral Defense Panel Member

Accepted in partial fulfillment of the requirements for the degree BACHELOR OF

SCIENCE IN BUSINESS ECONOMICS.

__________________________
Engr. JOSE A. SILERIO, MBA
Dean
 TABLE OF CONTENTS

Title Page
Recommendation
Approval Sheet
Table of Contents
Bahay Tubo Logo
Acknowledgment

I. Executive Summary .................................................................................. 1

A. Name of Business .................................................................................. 1
B. Title of the Study .................................................................................. 1
C. Farm Location ............................................................................................. 1
D. Description of the Logo .............................................................................. 2
E. Project Summary .................................................................................. 3
a. Market Summary .................................................................................. 3
b. Technical Summary ...................................................................... 4
c. Management Summary ...................................................................... 5
d. Financial Summary ...................................................................... 5
e. Socio-Economic Summary .......................................................... 6

II. Introduction ......................................................................................................... 7

A. Background of the Study ...................................................................... 8
B. Objectives of the Study ...................................................................... 9
C. Operational Definition of Terms .......................................................... 9
D. Scopes and Limitations ...................................................................... 10

III. Market Study ............................................................................................ 12

A. Methodology ............................................................................................ 13
a. Interview ............................................................................................ 13
b. Research ............................................................................................ 13
B. Demand ............................................................................................ 14
 a. Previous Demand ................................................................................ 14
b. Projected Demand .................................................................... 15
C. Supply ............................................................................................ 16
a. Previous Supply ................................................................................ 16
b. Projected Supply ................................................................................ 17
D. Demand and Supply Gap Analysis ........................................................ 17
E. Market Share Analysis .................................................................... 18
a. Market Share ................................................................................ 18
F. Market Segmentation .................................................................... 19
G. Marketing Strategies .................................................................... 19
a. Product Strategy ................................................................................ 19
b. Place Strategy ................................................................................ 20
H. Competitors ............................................................................................ 20
I. SWOT Analysis ................................................................................ 20
a. Strengths ............................................................................................ 20
b. Weaknesses ................................................................................ 21
c. Opportunities ................................................................................ 21
d. Threats ............................................................................................ 22

IV. Technical Study ........................................................................................... 23

A. Product Description ............................................................................... 24
B. Cultivation Process of Sugarcane ........................................................ 25
C. Plant Size and Production Schedule ........................................................ 29
D. Machinery and Equipment .................................................................... 32
E. Plant Location ............................................................................... 34
F. Plant Layout ............................................................................................ 35
G. Raw Materials and Supply .................................................................... 36
H. Utilities ............................................................................................ 36
I. Waste Disposal ................................................................................ 37
.
V. Management Study ........................................................................................... 38
A. Form of Ownership .................................................................... 39
B. Vision and Mission .................................................................... 39
 a. Vision ............................................................................. 39
b. Mission ............................................................................. 39
C. Capitalization ............................................................................. 40
D. Organizational Structure ................................................................. 41
E. Manpower Requirement ................................................................. 42
F. Compensation ............................................................................. 44
G. Employment Process ................................................................. 45
H. Organizational Policies and Procedures ......................................... 46
I. Legal Requirements ................................................................. 50
.
VI. Financial Study ......................................................................................... 53
A. Projected Balance Sheet ................................................................. 54
B. Projected Changes in Partners’ Equity ......................................... 55
C. Projected Income Statements ..................................................... 57
D. Projected Statement of Cash Flows ..................................................... 58
E. Quick Ratio Analysis ............................................................................. 60

VII. Socio-Economic Study ............................................................................. 61

A. Socio-economic Contributions ..................................................... 62
a. Contribution to the Philippine Economy ............................. 62
b. Employment Generation ................................................................. 62
c. Environmental Contribution ..................................................... 63

Bibliography
Appendices
 LIST OF TABLES

Table 1. Previous Demand of Sugarcane in Batangas, 2012-2016

Table 2. Projected Demand of Sugarcane in Batangas Mills
Table 3. Previous Supply of Sugarcane in Batangas, 2012-2016
Table 4. Projected Supply of Sugarcane in Batangas Mills
Table 5. Demand and Supply Gap
Table 6. Market Share Analysis
Table 7. Fertilizer Dose for Seasonal Plantation
Table 8. Project Schedule
Table 9. production Schedule
Table 10. List of Machinery and Equipment
Table 11. Table of Capitalization
Table 12. Work Schedule

LIST OF FIGURES

Figure 1. Plant Location

Figure 2. Plant Layout
Figure 3. Organizational Chart
A FEASIBILITY STUDY ON THE CULTIVATION OF SUGARCANE
 ACKNOWLEDGEMENT

This feasibility study is accomplished through the guidance, cooperation, control and

participation of these following people. The study won’t succeed without the endless support

and assistance from you and we will be forever grateful to all of you.

First and foremost, to the Almighty God who gave us enough knowledge and wisdom

to accomplish this project, and for always securing our safety and all those involved in this

study. Also, we thank you for giving us faith not to give up on things even if things get a

little messy due to misunderstanding.

To our parents, who guide us and give us inspiration to do our best in preparing for

this feasibility study. Thank you for allowing us to come home late and have overnights for

us to accomplish this. We can’t finish the study without your financial and emotional

support.

And of course, to our beloved professor, Dra. Sonia Manlangit, who shared her

knowledge with us and patiently helped us with our study. Thank you for answering our

questions wholeheartedly and giving comments that encouraged us to accomplish this study.

Along with our previous accounting professors, we would like to thank Mr. Clifford

McNeal Cruz for your time and your guidance in accomplishing the financial aspect of this

study.
 To Mr. Apolonio Consigo, the owner of the sugarcane farm for giving us knowledge

about the operation of the business and for giving us enough information that is essential in

our study.

Also, we express our deepest gratitude to the families and relatives of our members,

the Santiago family, who let us stay in their house and for helping us to prepare our daily

needs during the farm visit.

To Ms. Alyssa Ashley Torres and Mr. Kim Robert Altarejos, thank you for

accommodating us whenever we need to have sessions to finish our paper and for teaching

us ways on how we can improve our paper.

To all the members of the group, who had given their best and a lot of efforts

throughout the study and also for making it possible to complete the feasibility study within

the given time. It may not be an easy for all of us because of those sleepless nights and

pressure not only in this study but also in other subjects. Despite of some misunderstandings

we still managed to finish the feasibility study as a group. All the experiences we went

through will serve both a lesson and a memory that will forever be treasured.

We express our deepest gratitude and sincerely acknowledge everyone mentioned

above that made this Feasibility possible and successful.

 BIBLIOGRAPHY

Batangas-Philippines. (2012) A Sweet Grass – The Sugarcane. Retrieved from

http://www.batangasphilippines.com/sugarcane.html

Kutas, Geraldine. (2017). About Sugarcane. Retrieved from http://sugarcane.org/about-

sugarcane

Sugar Regulatory Administration. (2015, September). Sugarcane Roadmap 2020.

Retrieved from http://www.sra.gov.ph/wpcontent/uploads/2016/03/SUGARCANE

-ROADMAP- 2020_final_03022016.pdf
APPENDICES
Sugarcane Plantation Nasugbu, Batangas

Farm Visit at Nasugbu, Batangas

December 19 – 21, 2016