Chapter I

INTRODUCTION

1.1 PROJECT BACKGROUND/RATIONALE

Organic fertilizers and concoctions are carbon-based compounds that increase

the productivity and growth quality of plants. They have various benefits over chemical

fertilizers, which include non-toxic food, on-farm production, low-capital investment,

fertile soil, employment and much greater contribution and benefit of it is a safe

environment.

Organic fertilizers are a kinder, gentler way to give plants the nutrients they need.

Organic fertilizers usually come from plants, animals, or minerals and contain a variety

of nutrients to enhance the soil ecosystem. Synthetic fertilizers don’t enhance soil life or

add organic matter. Other benefits for using organic fertilizers over synthetics are; they

release their nutrients more slowly in the soil, when the plants need them, so they last

longer. The nutrients are contained in complex molecules that won’t leach away with the

first rain. They are less likely to burn the young roots of seedlings. Synthetic fertilizers

are made from mineral salts that can kill roots as well as soil microbes if applied

improperly. They enhance soil health by nurturing (or at least not harming) the soil

microbes that help make soil nutrients available to plants (Whitman and De John, 2009).

According to Organic Producers Trade Association (2014) coconut, sugarcane,

corn, etc. are crops produced under modern agriculture techniques that use large doses

of pesticides, herbicides and fertilizers are decreasing brain size, thus slowing down

1
one’s intelligence capabilities. OPTA also tells that international studies have likewise

shown that chemical-infused crops have resulted in cancer, hormone disruption,

neurological disorders and other life-threatening illnesses.

Benjamin R. Lao of Barangay Eman in Bansalan, Davao del Sur has completely

transformed his farm into a haven for organic products. Lao is one of the many farmers

in the Davao region who follow the organic methods of farming. “Organic agriculture is

the answer,” stressed Jessica Reyes-Cantos of the Manila-based Rice Watch and

Action Network. “It won’t only retain soil productivity but it can make farming viable. If

farmers will have additional income from their land they will continue to plant rice.”

In the province of Sultan Kudarat, one of their advocacies is to achieve

agricultural development and sustainability with the application of organic farming that

would give higher benefit, economically and would not compromise environment.

With the present situation in the agricultural industries, this study put interest to

the researchers to determine the feasibility and viability of this study. This also

determines the benefits, environmentally and economically. This study gives significant

to the researchers, potential investors, local government, and farmers that the result

may provide knowledge to develop a business that contributes to economic and

environment as well as the benefit that could be gain from it. This will also help the local

government to achieve its goal of development and sustainability of agriculture.

2
1.2 TRADING NAME

The name of the business is “EcoVi Organic Agri Solutions”. “EcoVi” derived from

two words economical and environmental. All products are organic which considered as

environmentally and economically beneficial. “Organic Agri Solutions” are products

made of organic materials that can be apply to provide solutions to agricultural

dilemmas. The EcoVi Organic Agri Solutions was verified by the DTI (Department of

Trade and Industry) that this is not used by any existing business entities.

Figure 1.2.1 EcoVi Organic Agri Solutions Logo

The tagline of the proposed business is ‘Helping Nation, Saving Nature”

pertains the purpose of establishing the business. Helping Nation: because it helps the

community through tax, employment and community development. Saving Nature:

because of the natural way of healing soil and treating crops without compromising the

nature. The globe inside signifies the goal and perception of the proposed business

towards global competition with the use of organic products. The soil; this represent the

3
organic products which are applicable for different agricultural problems. The growing

plant symbolizes the great help and benefit of organic products in crops.

General Objective:

To determine the feasibility and viability of establishing EcoVi Organic Agri-

Solutions in Tacurong City, Sultan Kudarat.

Specific Objectives:

Specifically, the study determines the following:

1. The project cost of the proposed business;

2. The personnel needed in establishing the proposed business;

3. The historical and projected demand and supply of products of the proposed

business;

4. The target market of the proposed business;

5. The process of making vermin-composed (organic fertilizer) and concoctions and

its application;

6. The profitability of the proposed business; and

7. The social, economic, and environmental contribution of the proposed business.

4
1.3 PROJECT LOCATION

The proposed business will be located at Brgy. Poblacion, Bagumbayan, Sultan

Kudarat. The proponents chose the location of business because it is easy to access

and suitable to put the business. The area of the proposed business is strategic

because it is conspicuous for the eye of the customers and is the only establishment

that offers organic fertilizer. The land area for the business is 500 sq. m. that costs

500,000 Php. The partners are going to purchase the land to _______.

MLhullier To SKSU-
Bagumbayan
Campus

To Little
Baguio
To
Bagumbayan
To Municipal Hall
Municipality
of Isulan

Fig. 1.3.1 Location map of EcoVi Organic Agri Solutions

5
 The figure above shows the customize map of the EcoVi Organic Agri Solutions.

The map shows the road names and landmarks that will guide customers for easy

recognition of the location. This will able them to have easy access and contact to the

business.

1.4 OPERATIONAL/DEFINITION OF TERMS

Organic Fertilizer -are fertilizers derived from animal matter,

animal excreta (manure), human excreta,
and vegetable matter (e.g. compost and crop
residues). Naturally occurring organic fertilizers
include animal wastes from meat
processing, peat, manure, slurry, and guano.

Concoction/s - a mixture of various ingredients or elements.

Syntethic/ Inorganic Fertilizer -referred to as synthetic fertilizers, were

manufactured artificially and contain minerals
or synthetic chemicals.

Molasses -is a viscous product resulting

from refining sugarcane or sugar
beets into sugar.

Earthworm -is a tube-shaped, segmented worm found in

the phylum Annelida. They are commonly
found living in soil, feeding on live and dead
organic matter.

Fermented Fruit Juice - the concoction product of EcoVi that made

from axillary buds and young fruits, fast

6
 growing plants, young leaves of plants and

grasses.

Fermented Plant Juice - the concoction product of EcoVi that made

from sweet ripe fruits, fruit vegetables and

rootcrops.

Fish Amino Acid (IMO) - the concoction product of EcoVi that

produced from spoiled fish and fish trash

fermented after storing for a 30-day period.

FAA contains nitrogen (90%) and phosphorus

(2.5%).

Indigenous Microorganisms (IMO) - the concoction product of EcoVi that is a soil

additive made from indigenous microbes

cultured in cooked rice.

Vermi-Compost - a product of EcoVi that comes from the waste

of compost worm produced over a period.

7
 Chapter II
ORGANIZATION AND MANAGEMENT ASPECT

2.1 FORM OF BUSINESS

The form of business organization of EcoVi is partnership, sharing profit and

losses equally. The proposed business is structured as partnership because the

business is composed of five persons who would contribute their time, effort, skills, and

specialization to run the business.

The partners of the business will be contributing an amount through their equity

amounting to Php 1, 062,616. 72. The capital contribution of each partners will be from

their personal account and savings. The capital contribution of each partners were

presented in the table 2.1.1.

Table 2.1.1: Partners contribution projection

PARTNERS AMOUNT

A Php 212, 523.34

B Php 212, 523.34
C Php 212, 523.34

D Php 212, 523.34

E Php 212, 523.34

TOTAL 1,062,616. 72

The table shows the partners contribution. Each partner will contribute Php Php

212, 523.34. The total contribution will be allocated for procurement of land (Php 5000,

000.00), equipment (Php 129,915.00), marketing expense (Php 3, 000.00), building

construction (Php 283, 738.00), utility expense (Php 4,385.00), furniture and fixture

8
(Php 8,350.00), salaries and wages (21,500) and contingency fund of Php 50,600. 80

(5% of total capital).

ORGANIZATIONAL STRUCTURE

A business cannot be efficient and profitable if there is no proper designation of

work or personnel/employees are not present. Necessary to build a flow of management

inside the business. In figure1 below shows the organizational chart of the EcoVi

Organic Agri Solutions.

Manager

Book keeper

Production labor Guard

FIGURE 2.1.1 ORGANIZATIONAL CHART OF EcoVi ORGANIC AGRI SOLUTIONS

The figure above shows the flow of management of the EcoVi Organic Agri

Solutions. It shows that there is a Manager, it provides knowledge and direction and will

serve as the head for the team, it will also serve as the cashier. The personnel under

the manager will serve as a help and support to maintain the good functions and

9
 operations of the business. The organizational chart will ensure the underlying

responsibilities of the members.

The employees/workers of the proposed business will be hire according to the

hiring process and standards of EcoVi Organic Agri Solutions that will provide.

2.2 PERSONNEL REQUIREMENTS

Table 2.2.1 EcoVi Organic Agri-Solutions Key Personnel, Job Qualification and
Job Description

KEY No. of JOB QUALIFICATION JOB DESCRIPTION

PERSONNEL Workers

*Male/Female *Maintains staff by recruiting,

selecting, orienting, and
*25-30 years’ old training employees;
*Must be a graduate of any maintaining a safe, secure,
business course. and legal work environment;
MANAGER 1 developing personal growth
*Must have knowledge in opportunities.
planning, organizing, directing,
staffing, and controlling the *Establishes strategic goals
business massive works. by gathering pertinent
business, financial, service,
. and operations information;
identifying and evaluating
trends and options; choosing
a course of action; defining
objectives; evaluating
outcomes.

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 *Male/Female *Manage the records of the
business and responsible to
*25-30 years’ old
keep the records.
*Must be a graduate of BS
Accountancy/ Accounting *Responsible for controlling
BOOK KEEPER 1 Technology the inventory and give
(on-call) courteous service.
*With at least 1-year experience
in bookkeeping

*With NC III in bookkeeping

 Male *Assist driver who deliver

 20-30 years’ old goods to businesses and
Production 3  Must have be a high customers.
school graduate or high
labours
school level.
 Must have knowledge in *Responsible for all activities
farming except the actual driving
loading and unloading items.

*Male/Female *Secure assets of the

business and one to guide the
*25-30 years’ old customers.
SECURITY 1
GUARD *A graduate of criminology *Must have skills on how to
communicate the customers
*Undergone training as a properly.
security guard

*At least 1-year experience as a

security guard and in guiding
the customers and patience in
work

11
 Table 2.2.2. Employees’ compensation, employees benefits SSS and PhilHealth

Compensation Employees benefits

SSS/PhilHealth
Key Monthly Annual SSS PhilHealth
Personnel Employee Total Employer Employee Total
Employer
contribution contribution
SSS PhilHealth
MANAGER 10,500 126,000 773.50 381.50 1,165 137.51 to 137.51 275.02
549.99 to To
549.99 1,099.98
BOOKKEEPER 1,500 18,000 ------- ------- ------- ------- ------- -------

PRODUCTION 2,500 30,000 194.20 90.80 285.00 137.50 137.50 275.00

LABOR
SECURITY 7,000 108,000 673.00 327.00 1,000.00 137.50 137.50 275.00
GUARD

Source: Philpad.com/SSS and Philhealth Contribution 2018

The compensation and benefits shown in the table 2.3 was based on the wages

given by EcoVi Organic Agri-Solutions and 2018 SSS/ PhilHealth contribution schedule.

This will give the members understanding and consider the contribution in SSS and

PhilHealth, it will serve as a guide to establish harmonious relation among members.

12
2.4 HIRING PROCESS/FLOW CHART

Figure 2.4.1 Flowchart of Hiring

The figure above shows the hiring process of EcoVi Organic Agri-Solutions. Step

1, posting of job vacancies, the publicity of job vacancies will help the business to

collect information and attract job seekers. Step 2, acceptance of documents, this will

give equal opportunity to the job applicants. The documents needed for application will

be recognize for approval. Step 3, there is an interview to the applicants, which is the

most important selection process of business. In this process, the applicants will tell

13
about their background in their life and other experiences regarding to the job they will

are applying. Step 4, verification of references and backgrounds will help the proposed

business to select a credible and able applicant that will be applying. Step 5, Collecting

and evaluating information are steps that help the business to secure from any health

status of qualified employee. Step 6, is the final selection of applicants for the job they

had applied. Last step, proper orientation and training helps to develop workers’ ability

to work efficiently and to inquire knowledge to enhance their skills and to abide with the

proper conduct and goals of the business.

14
Table 2.4.2 Project Time Table or Gantt chart of EcoVi Organic Agri-Solutions

Dec Oct Nov Dec Jan Feb March

ACTIVITIES 2017 2018 2018 2018 2019 2019 2019
Planning of
Feasibility Study
Preparation and
Formation of
Partnership
Site Survey

Processing of
Business Permits
and License
Construction of
the Building
Publicity of
Advertisements
and Promotions
Procurement of
Equipment and
Materials
Hiring and
training of
Employees
Start of business

Table 2.4 shows the project timetable of the business. The planning of Feasibility

Study is in the month of Dec 2017 to Oct 2018. The proponents started the formation of

the business partnership for the EcoVi Organic Agri-Solutions in Oct 2018. Partners

started the site survey Nov 2018 to secure the appropriate location of the business. The

partners started processing the legal requirements needed in establishing the business

from Dec 2018 and ended in Feb 2019. The partners began to construct the place of

business or the building Dec 2018 to Jan 2019. The advertisement, publicity and

promotion of business obtain four (4) months. Started from Nov 2017 and ended in

15
March 2019. The procurement of equipment and materials will be going to make in Dec

2018 to Jan 2019. The business will start the hire and then training of employees in Jan

2019 to Feb 2019. This is the season where pool of job seekers is at peak. The formal

launching of business starts in the month of March 2019.

16
 Chapter III
MARKETING ASPECT

3.1 MARKET DESCRIPTION

The proposed business EcoVi Organic Agri Solutions offers organic fertilizer and

concoctions for crops, plants and vegetables. The target market of the proposed

business are the farmers of different variety of yields in Bagumbayan and nearby

municipalities in the province of Sultan Kudarat. The fact that using of

inorganic/synthetic fertilizer is increasing in volume it also bring negative impact to the

health of the consumers. Moreover, it exhausting and compromising the nutrients in the

soil.

Because of the current situation people are facing from health and unstable

agriculture, it is a great deal to be a part of change and contribute in sustainable

agriculture and zero-chemical foods for the people.

3.2 Analysis of Demand and Supply

Demand

The organic fertilizer and concoction venture is essential not only for business-

minded people but also for the farmers and local government. Upon coming up with

particular strategy, it would be beneficial for us to lend some time in anticipating factors

that can affect the demand for our products. The proposed business intended to provide

services and product that is competitive and comparative in the market.

17
 To do that, advance technology will be utilize and access to internet will be

recognize. Proper methods and preparation of the product will incorporate by the

business to deliver a quality and effective product. Proper packaging of the product will

be included to be saleable, presentable and competitive in the market. Above all, the

proposed business will put consideration the welfare of the customers.

3.2.1 Historical Demand of Organic Fertilizer for EcoVi Organic Agri Solutions

Potential Frequency
Year Population Total Demand
Customer (annual)

2013 584 584 10 5842

2014 596 596 10 5965
2015 609 609 10 6090
2016 622 622 10 6215
2017 634 634 10 6343

Table 3.2.1 Historical Demand table shows the result of the data gathered from

the farmers through interview and survey. Taking the information of minimum and

maximum daily demand and the daily average demand of organic fertilizer and

concoction. It shows the total demand of organic fertilizer and concoction for the past

five years.

Based on the consolidated data, it implies that increasing number of

farmers increases the demand of organic fertilizer and concoction.

18
3.2.2 Projected Demand of Organic Fertilizer for EcoVi Organic Agri Soltuions

Year Total projected demand

2018 6,473

2019 6,603

2020 6,735

2021 6,869

2022 7,004

The table 3.2.2 shows Projected Demand computed based on the data

gathered from the farmers through interview and survey. From the 2018 demand 6,473,

noticeably, the projected demand for organic fertilizer and concoction is increasing.

Therefore, the proponents conclude that the yearly production needs to increase, since

the demand for organic fertilizer and concoction is yearly increasing.

3.2.3 Historical Demand of Concoctions for EcoVi Organic Agri Solutions

Year Total Demand

2013 1788

2014 1827

2015 1866

2016 1902

2017 1940

19
3.2.4 Projected Demand of Concoctions for EcoVi Organic Agri Solutions

Year Total Demand

2018 1,978

2019 2,016

2020 2,054

2021 2,092

2022 2,130

Supply

In supply, it was observed that there is no supply of organic fertilizer and

concoctions for the demand of the target market. There only two existing Agricultural

supply businesses in the municipality of Bagumbayan. However, the competitors only

provides synthetic fertilizers to the needs of the farmers. Thus, the EcoVi Organic Agri

Solutions will be the sole supplier of organic fertilizer and concoction in the target

market. The demand for products in the target market is increasing due to the increase

of population of the farmers. These was seen and by the proponents to be profitable

and can make great opportunity to penetrate the target market.

20
Table 3.2.5 Historical Supply of Organic Fertilizer for EcoVi Organic Agri

Solutions

Average sack sold

Year Competitors (annual) Frequency Total Supply
2013 2 80 3 480
2014 2 82 3 490
2015 2 83 3 500
2016 2 85 3 510
2017 2 87 3 521

Table 3.2.5 Historical Supply shows the result of the data gathered from

the competitors through interview and survey. Taking the information of minimum and

maximum daily production from the competitors, the average was computed and then

use to compute the yearly average supply of synthetic fertilizer.

Table 3.2.6 Projected Supply of Organic Fertilizer for EcoVi Organic Agri

Solutions

Year Total Supply

534
2018
540
2019
552
2020
564
2021
576
2022

21
 The table 3.3.4 shows Projected Supply computed based on the data

gathered by the proponents from the competitors through interview and survey. From

the 2018 supply, there is a yearly increase for the four years. Therefore, the proponents

conclude that the competitors increased their supply to cater the increasing demand.

Table 3.2.7 Historical Supply of Concoction for EcoVi Organic Agri Solutions

Year Total Supply

2013 339

346
2014

2015 353

360
2016

2017 367

Table 3.2.8 Projected Supply of Concoction for EcoVi Organic Agri Solutions

Year Total Supply

2018 374

2019 381

2020 388

2021 396

2022 404

22
3.3 Competitors

Competitors Location Years in Operation

REAL AGRI SUPPLY Brgy. Pob. Bagumbayan, 15 Years

Sultan Kudarat

SALAZAR AGRI SUPPLY Brgy. Pob. Bagumbayan, 11 Years

Sultan Kudarat

In the current situation there are only two competitors which dominating

the demand and supply in the market. However, they only provide synthetic fertilizer for

the needs of the farmers. Whenever EcoVi Organic Agri Solutions will be established it

will meet all the needs of the farmers for organic fertilizer and concoctions.

3.4 Analysis of Market Gap and Market Share of Competitors and EcoVi Organic

Agri Solutions

Total Demand for Organic Total Market

Year Market Gap
Fertilizer Supplied Share (10%)
2018 6,473 534 5,939 594
2019 6,603 540 6,063 606
2020 6,735 552 6,183 618
2021 6,869 564 6,305 631
2022 7,004 576 6,428 643

23
 Total Demand for Total Market
Year Market Gap
Concoctions Supplied Share (37%)
2018 1,978 374 1,604 593
2019 2,016 381 1,635 605
2020 2,054 388 1,666 616
2021 2,092 396 1,696 628
2022 2,130 404 1,726 639

3.5 SWOT Analysis

3.5.1 Strengths

 Accessible to the target market and nearby municipalities

 New modern set of machinery and equipment

 Low cost of production.

 Well-trained employees

 Well-managed economic resources

3.5.2 Weaknesses

 Mismanage of resources

 Unintended inventories

3.5.3 Opportunities

 Low cost of production in which the business can get high benefit.

24
  Increasing number of organic farmers, which leads to increasing demand

for organic fertilizer.

 Accessible to the target market

3.5.4 Threats

 Competitive structure of the market.

 Existing and entry of more competitors in the market.

 Unexpected phenomena (ex. Calamities- man-made and natural).

3.6 The Marketing Mix

3.6.1 Product

The main products of the EcoVi Organic Agri Solutions are organic fertilizers and

concoctions. Products are under the sensitive care and protection to any external and

internal causes to maintain the quality and effectiveness of the product until harvest.

3.6.2 Price

The business will offer products prices in relation to what the resident

capability to purchase. The imposed price was based on the market price and

reasonable.

Organic Fertilizer and Concoctions Price

Vermin compost Php 450/ sack

Fermented Fruit Juice (FFJ)

Fermented Plan Juice (FPJ) Php 300/litres

25
 Fish Amino Acid (FAA) or

Indigenous Microorganism (IMO) Php 75/quarter

3.6.3 Place

EcoVi Organic Agri Solutions will be located at Brgy. Poblacion,

Bagumbayan, Sultan Kudarat. The location site of the business is situated at the

heart of the municipality. It can be easily access by nearby municipalities and it is

placed in a strategic area where conspicuous to the customers.

3.6.4 Promotion

The proposed business will provide print ads such as tarpaulins and flyers

for the promotion of the business. Online advertisement will also be used.

Facebook page will be launched and is open for suggestions and comments for

the customers and other form of communication will going to utilize by the

proposed business for further campaign of the product.

26
 Chapter IV
THE TECHNICAL ASPECT

4.1 BUSINESS LOCATION

4.1.1 Mode of Acquisition

The proposed business will be established in the Municipality of Bagumbayan,

Sultan Kudarat with an area of 500 sq. m that costs 750,000Php. It is located in a

strategic area to easily gain customers that are interested with organic farming as well

as with organic fertilizers and concoctions.

4.1.2 Sketch Plan/ Layout

27
Figure 4.1.3 Upper View and Front View

28
Figure 4.1.4 Right Side View and Left Side View

29
4.2 Sources of Product and Services

The sources of raw materials are locally available. Raw materials will be from

various restaurants and carenderias, fruit vendors, from the wet market, vegetable

vendors and other farm wastes.

4.2.1 Research and Development

The business focuses in producing organic fertilizers and concoctions to address

problems of farmers in agricultural production. Also for soil nutrient conservation. Yet,

the materials to be used for production must be classified accordingly to produce quality

product. The researchers conducted quantitative and qualitative survey to meet the

need of the farmers and assures that the product to be offered are effective.

4.2.2 Introduction and Launch

In this stage it is needed to make the business recognize by the customers and

other interested buyers. It is important in this stage that EcoVi should take more effort

and wide consideration in every factors of introducing the business in the market. On

this stage, higher cost and preparation in promotion of products. This may push to

increase demand slowly. The products of the proposed business will be promoted

through advertisements; tarpaulins and fliers will be posted for easy recognition of the

business. It will also use social media advertisement to help for wide exposition of the

products of the proposed business.

30
4.2.3 Growth and Exploitation

In this stage, vermi-composed and concoctions are dominant in the market which

simply denotes that demand for the said products are increasing. Enable to maintain the

standing of the proposed business in the market, they must innovate strategies to

capture market and to compete with the existing business with similar products offered.

4.2.4 Maturity and Exploitation

EcoVi Organic Agri Solutions approaches maturity, indicating slowing growth.

While sales are expanding and earnings are growing from the products, the rate has

slowed from the growth stage. New competitors will try to steal market share from

existing products. Thus, the marketing effort of EcoVimust remain strong and must

stress the unique features of the product to continue to differentiate demand from

industry competitors. Other related businesses may compete on quality to separate their

product from other lower-cost offerings, or conversely the firm may try a low-cost/low-

price strategy to increase the volume of sales and make profits from inventory turnover.

While innovations continue the business will enhance its packaging, change in color or

formulation to stress "new" or "improved" to consumers.

4.2.5 Decline and death

In this phase, EcoVi Organic Agri Solutions sales are decreasing at an

accelerating rate. Competitors will exit the industry yet some firms will remain to

compete in the smaller market. Mergers and consolidations will also be the norm as

firms try other strategies to continue to be competitive or grow through acquisition

and/or diversification. Declines are almost inevitable in an industry. If product innovation

31
has not kept pace with other competing products and/or service, or if innovations or

technological changes have caused the industry to become obsolete, sales suffer and

the life cycle of EcoVi will experience a decline.

4.3 Channel of Distribution

Figure 4.3.1 Indirect Distribution

Figure 4.3.2 Direct Distribution

32
4.4 Standard Operating Procedure (SOP)

Vermi-composting as the Appropriate Composting Method

Selecting Site

As such, select a site that would be well above the flood level, shaded, airy and

where water and raw materials are easily available. The temperature should be about

26 degrees Celsius. In summary, a good composting site has the following

characteristics:

 Good drainage system

 Availability of water supply

 Proximity to the source of raw materials

 Accessibility of the composting site

 Area of minimum contamination

 Area with minimal sunlight

Site Layout

The method of housing the worms is site specific and person specific. Conditions

obtaining in one place may not be present in another. As such, the vermiculturist

should decide what is best suited for him and his place. However, a word of caution at

this point is that for first-timers, it is better to use tried and tested methods before

modification and combinations are done. With more experience and confidence,

33
modifications and combinations may be instituted. The following are the options for the

layout and housing type:

 Wormbins/wormbeds may be made of any material available whether iron bars with

plastic lining, old plastic basins, bamboo slats or hollow blocks.

 Windrows are piles of substrate that are decomposed before feeding them to the

worms. They are usually about one meter wide and and at least one meter high and can

be any length desired or practicable.

 Housing structures are the best options but are also the most expensive so will be

considered when finances permit. However, if there are abandoned structures within the

site, these can be used as well for the purpose.

 In the more developed countries where labor is expensive, some companies opt for

mechanical systems. Again, this can be explored when the project is big enough and

finances warrant this option because while the manpower is low, the capital expenditure

is high and hugely dependent on electricity.

Bed Preparation

Prepare the bed by selecting the site that is shaded, free from predators and near

to the water source. Arrange the hollow blocks making a bed of 1m x 3m and put

bamboo stakes to strengthen the bed. Used sacks and nylon net could be used as

matting. Other materials that may be needed in the stocking of the bed are:

 Water and water sprinklers

 Plastic sheets to cover the bed

34
 Gathering Raw Materials

In preparing the raw materials (substrate), it is helpful to consider the source and

quality, the carbon to nitrogen (C:N) ratio and the size of the materials.

Source and quality

In sourcing raw materials, care should be taken that one is sure of the quality of

raw materials. If using animal manure, be sure that the animals were not dewormed as

this would also deworm your project. On the other hand, the plant source should also

be free of harmful insecticides, fungicides and herbicides which may also decimate your

worm population.

The worms eat all organic waste and produce vermin cast. However, the quality

of the vermin cast and the speed of production is dependent on several factors.

Carbon to Nitrogen Ratio (C: N)

As previously mentioned, the desired C: N ratio is 70:30. To achieve this, more

than two (2) parts of carbon source with 1 part of nitrogen source. In the rural setting,

one may have the luxury of choosing and formulating the raw materials for the substrate

in which case, the resultant vermin cast is of fertilizer quality. At a higher ratio, the

carbon and nitrogen will be locked and not easily available to the plants. A low ratio will

not be able to hold the nitrogen well and it will volatilize easily.

35
Size of the materials

The smaller the materials being composted, the faster the process. While

shredding is not absolutely necessary, it is a vital factor in speeding up the process.

After gathering the raw materials, mix well and shred. Wet the mixture so it feels like a

damp sponge.

Decomposition Process

Stage 1: Anaerobic Decomposition

Place the substrate in containers as airtight as possible or cover it with plastic sheet.

This is the anaerobic process which is to hasten the decomposition. This is composting

without air, hence the name. This stage may last from 1 week depending upon the

quantity being processed and the size of the particles. The substrate is ready for use

when the temperature has dropped to ambient levels and you can see the appearance

of white mushrooms.

Stage 2: Aerobic Decomposition

When the substrate has cooled down, place the substrate in appropriate containers or

remove the plastic sheet in the bed. This next phase is called the aerobic stage or

composting with air.

Stocking Earthworms

36
 The rate of producing vermin cast is dependent on the stocking density vis-à-vis

the amount of substrate. We have observed that the worms can eat faster if the

substrate is not too thick perhaps because of easier mobility. A depth of about 4-6

inches of substrate at this stage appears to be ideal. It has been observed that 100

kilos of substrate can be consumed within 30 days by 1 kilo of worms.

Monitoring Compost

Maintain a humidity of 80%. Protect the worms from natural predators.

Birds, chickens, frogs, mice, snakes and even pigs love to eat worms. While ants do

not eat worms, they can kill your population if left unattended. Shade the worms from

direct sunlight. Worms have no skin and cannot withstand direct sunlight. Loosen the

substrate gently and do not allow it to get compacted. The constant watering of the

beds will compact the substrate. Loosen the beds very gently when needed taking care

not to disturb the worms too much.

Practical Tip for Humidity: Test by squeezing a fistful of substrate. Five to seven

drops of water indicate about 80% humidity. Care should be taken that the substrate is

taken from the lower portion of the bed because the upper portion might already by dry

but the lower portion is still wet.

Harvesting Compost

The earthworms are well mannered and polite. They do not like to live with their

poo. They eat the substrate and deposit their castings on the top. In about 6-8 weeks,

the substrate that was formerly identifiable as grass and leaves becomes transformed

into granular earthy material. The decision to harvest depends on one’s needs.

37
Practical tip: Compost is ready to use when it is dark brown, crumbly and has an earthy

smell.

OPTIONS:

a. Pick the worms by hand and transfer them to a new wormbed. The vermin

compost may be allowed to dry in the shade for a few days and then sifted if

a finer compost is desired.

b. In the shade, pile the vermin compost in such a manner that it looks like a

pyramid. After a day, you can harvest the top part easily because the

worms have gone to the bottom of the pile. When you reach the bottom of

the pile, you can extract the worms manually.

c. Move the contents of the whole bed to one side. Fill the empty half with

new substrate. Allow the worms to move freely to the new food. Harvest

the castings left by the worms.

d. Fill an onion bag with fresh food and bury it in the middle of the bed. After a

week or so, the bag will be filled with worms which you can empty to a new

wormbed. This facilitates the gathering of most worms.

e. If you are not ready to harvest your vermicompost which is fully eaten by the

worms, place a net on top of the bed and place a 5 cm layer of fresh

substrate on top. You can delay harvesting for about a week (depending on

the volume of worms in the bed) because the worms will transfer to the new

food. At the same time, when you are ready to harvest, you can first

38
 remove the net with the food and you will see that the worms have mostly

transferred here.

If you are in a hurry and need the castings, scrape the top of the bed of the

castings deposited there. You run the danger though of losing the eggs

which may be there and have not yet hatched

Dry your vermicompost in the shade only. Exposing organic fertilizer to the sun

will cause it to lose its nitrogen content. Vermicompost can be stored at 30% humidity in

plastic bags. Store in a cool place away from direct sunlight.

Practical tip: To check if it is 30% humidity, place some vermicompost in your

hand and squeeze to form a ball. Open you palm and apply some pressure with the

index finger of the other hand. If the ball breaks easily into two to three parts, that is

about 30% humidity. If the ball crumbles easily, that is less than 30%. If your finger

leaves and imprint on the ball and the ball breaks, that is more than 30%.

Organic Concoction and Extracts Production

Indigenous Microorganisms(IMO)

1. Cook a kilo of rice, preferably organic. After cooling, put the cooked rice in a bamboo,

wooden, earthen or ceramic container. Avoid plastic or aluminum.

2. Cover the mouth of the container completely with manila paper and plastic cover,

fixed in place with a rubber band, to prevent water or small insects from getting in.

39
3. Put the covered container, protected from possible rain, under the trees, in a bamboo

grove, a forest floor, or wherever a thick mat of leaves has formed. Leave it there for

three days.

4. After whitish moldy filaments have formed, transfer the entire contents of the

container to a larger glass or earthen jar and add one kilo of brown sugar or molasses,

preferably organic.

5. Cover the jar with clean cloth or paper, fixed with a rubber band. Keep the jar in a

dark, cool place. Let it ferment for seven days, until it appears muddy. This is your IMO

concoction.

Fermented Plant Juice (FPJ)

1. Collect the plant materials early in the morning while they are fresh and the

microorganisms are still present. Wash and drain the plant materials.

2. Cut the plant materials into small pieces (an inch size) so that the juice can be easily

extracted.

3. Put the chopped plant materials in a pail or container, add crude sugar or molasses

which is ½ of the total weight of the plant source, then mix thoroughly using the wooden

ladle. Make sure that all plant materials are mixed with sugar so that the juice can be

extracted easily.

4. Put a net above the mixture and put weight to compress the mixture. Stone is a good

material used to weigh down the mixture.

40
5. Cover the pail with two-layered manila paper, and secure with a string or rubber

band. Paper is used as cover to allow some air to get inside the pot and for the gas that

is being produced during the fermentation process to escape. Label the container, write

the date of processing and the expected date of harvest.

6. Store the container with the mixture in a cool dry shady place. Make sure that the

storage area is not infested with cockroaches or mice, because they might feed on the

mixture and contaminate the extract. In 7 days, plant juice is extracted and fermented.

The plant extract will change its color from green to yellow, then to brown and will smell

sweet and alcoholic.

8. After 7 days, lift the mixture and squeeze hard to get the remaining extracts.

9. Collect the fermented extracts and preserve in dark colored glass jar. You may add

the plant residue to the compost pile to hasten decomposition or you can apply it to the

garden plots as source of organic matter. Use your FPJ more effectively if it is stored for

another one week after completion.

Fermented Fruit Juice (FFJ)

1. Collect ripe fruits or vegetables that are already available or in season, for example, if

squash is available, then make fermented squash juice. There are plenty of materials to

be used so you can make different kinds of FFJ. Use any materials that are free from

insect pests and diseases.

2. Chop the materials into small pieces (an inch size) so that the juice can be easily

extracted.

41
3. Put 1 kg chopped materials in a pail, add 1 kg crude sugar or molasses, and then mix

thoroughly using a wooden ladle. You must make sure that all chopped materials are

coated with sugar or molasses so that the juice can be extracted easily.

4. Put a net on top of the mixture and put weight to compress the mixture. Stone is a

good material used to weigh down the mixture.

5. Cover the pot or pail with two-layered manila paper or cloth and secure with a string

or rubber band. Paper or cloth is used as cover to allow some air to get inside the pot or

pail and for the gas that is being produced during the fermentation process to escape.

Label the mixture, write the date of processing and the expected date of harvest.

6. Store the container with the mixture for 7 days in a cool dry shady place. Make sure

that the storage area is not infested with cockroaches or mice, because they might feed

on the mixture and contaminate the extract. In 7 days, fruit juice is extracted and

fermented. The fruit extract will change its color from yellow orange to brown, and will

smell sweet and alcoholic. After 7 days, lift the mixture and squeeze hard to get the

remaining extracts.

7. Collect the fermented extracts and preserve in dark colored glass jar. You may add

the fruit residue to compost pile to hasten decomposition or you can apply it to the

garden plots as source of organic matter. You can use your FFJ more effectively if it is

stored for another one week after completion.

Fish Amino Acid (FAA)

1. Collect chopped fish or fish trash such as gills, entrails, golden snail (shell removed)

or meat scrap and rejects

42
2. Chop the materials into small pieces (an inch size) so that the juice can be easily

extracted.

3. Put 1 kg chopped materials in a pail, add 1 kg crude sugar or molasses, and then mix

thoroughly using a wooden ladle. You must make sure that all chopped materials are

coated with sugar or molasses so that the juice can be extracted easily.

4. Put a net on top of the mixture and put weight to compress the mixture. Stone is a

good material used to weigh down the mixture

5. Cover the pot or pail with two-layered manila paper or cloth and secure with a string

or rubber band. Paper or cloth is used as cover to allow some air to get inside the pot or

pail and for the gas that is being produced during the fermentation process to escape.

Label the mixture, write the date of processing and the expected date of harvest.

6. Store the container with the mixture for 7 days in a cool dry shady place. Make sure

that the storage area is not infested with cockroaches or mice, because they might feed

on the mixture and contaminate the extract. In 7 days, fruit juice is extracted and

fermented. The fruit extract will change its color from yellow orange to brown, and will

smell sweet and alcoholic. After 7 days, lift the mixture and squeeze hard to get the

remaining extracts.

7. Collect the fermented extracts and preserve in dark colored glass jar. You may add

the fruit residue to compost pile to hasten decomposition or you can apply it to the

garden plots as source of organic matter. You can use your FAA more effectively if it is

stored for another one week after completion.

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4.5 Mode of Acceptable Payment

The proposed business will only allow cash as a medium of payment. The

moment the customers have its preference of organic fertilizer or concoction, customers

will directly pay to the cashier section through cash as a mode of acceptable payment

the business will allow.

4.6 List and Price of Equipment and Facilities

4.6.1 Equipment and Facilities

PRICE
DESCRIPTION LIFE SPAN UNITS TOTAL (Php)
(PHP)
EQUIPMENT
Container Drum 5 years 300 4 1,200
ELF Truck 10 years 115, 860 1 115,860
Fire Extinguisher 1,150 1 1,150
Sprinkler 3 years 2,365 2 4,730
Water Dispenser 3 years 580 1 580
Weighing Scale 2 years 2,150 1 2,150
Total 125,670
FURNITURE AND FIXTURES
Bulb 2 years 85 2 170
Cabinet 8 years 2, 900 1 2,900
Celing Fan 3 years 1,415 3 4,245
Flourescent Lamp 2 years 180 3 540
Wooden Chair 8 years 2,250 1 set 2,250
Office Table 8 years 3,200 1 3,200
Total 13,305
SUPPLIES
Ballpen 4 2 8
Basin 90 2 180
Calculator 465 1 465
Compost Worm 90 50 kls 4,500
Chopping Board 125 2 250
Gardening Gloves 65 3 pairs 195
Hair net 10 3 30

44
Knife 80 2 160
Manila Paper 230 1 set 230
Marker pen 120 1 doz 120
Mask 30 3 90
Masking tape 360 1 doz 360
Pail 90 2 180
Plastic Bags 210 1 rim 210
10
Receipt/Order Slip
90 pads 90
Rubber band 130 1 kl 130
Sacks 12 100 1,200
Shovel 2 850 1,700
Total 10,098
UTILITIES
Electricity 885
Fuel 1,500
Water 2,000
Total 4,385

4.6.2 List of Materials

Q UM DESCRIPTION EST.COST
220 BAGS CEMENT 47,300
4X8X16 CONCRETE HOLLOW
3220 PCS BLOCKS 25,760
36 CU.M WASHED SAND 3,600
6 CU.M G1 GRAVEL 4,000
120 PCS 12MM DEFORMED STEEL BAR 21,600
105 PCS 10MM DEFORMED STEEL BAR 16,800
10 KLS #16 TIE WIRE 700
20 PCS STEEL FAR LANES 6,000
50 PCS 2X3X10 4,500
52 PCS 2X3X12 5,616
140 PCS 2X2X10 LUMBER 14,385
25 PCS GA 28X12' CURROGATED GI SHEET 7,500
4 BOXES TEXT SCREW 800
7 PCS RIDGE ROLL 1,750
7 PCS 3/4X4X8 MARINE PLYWOOD 5,600
30 PCS 5MMX4X8 MARINE PLYWOOD 9,000
2 UNITS .70X2.10 PVC DOOR 2,200
1 SET COMFORT ROOM BOWL 3,500
140 PCS TILES 1,680

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 3 UNTS FLASH DOOR 5,400
5 SETS DOOR KNOB 1,250

6 PAIRS 4X4 HINGES LOOSE PIN 300

30 KLS ASSORTED COOMON WIRE NAILS 1,650
2 PCS 2"DIAX10' PVC PIPE 500
2 PCS 4"DIA PVC PIPE 400
4 PCS 4"DIA PVC ELBOW PIPE 90DEG 260
2 PCS 2"X4 PVC REDUCER 120
5 PCS 15MMX10' PVC BLUE PIPE 300
3 PCS 2"DIA PVC ELBOW PIPE 90DEG 45
7 PCS 15MM BLUE PIPE 525
3 PCS 15MM BLUE PIPE TEE 45
2 PCS 4X4 FLOOR DRAIN 130
1 CAN SOLVENT CEMENT 45
4 PCS FAUCET 260
PANEL BOARD WITH 6 BRANCHES
1 SETS BREAKERS 2,500
1 BOX #10 THW WIRE STRANDED 4,600
1 BOX #12 THW WIRE STRANDED 3,650
1 BOX #14 THW WIRE STRANDED 3,150
14 PCS RECEPTACLE 490
20 PCS UTILITY BOX 300
5 PCS JUNCTION BOX 125
4 PCS 2 GANG SWITCH 140
3 ROLLS ELECTRICAL TAPE 36
1 PCS 10MM PVC CONDUIT 465
300 MTRS 10MM FLEXIBLE PVC 1,200
TOTAL ESTIMATED MATERIAL
COSTS Php 210,177
ESTIMATED LABOR COSTS Php 73, 561
TOTAL ESTIMATED COST Php 283, 738

46
 CHAPTER V
Financial Aspect

5. 1 Source of Initial Investment

Breakdown of Initial Capital Outlay

Description Amount (in Php)

Biological Assets 2,500.00

Land Acquisition 500,000.00

Building Construction 283,738.00

Facilities & Equipment 129,915.00

Furniture and Fixture 8,350.00
Pre-operating expenses 87,512.92
1,012,015.92

Contingency Fund (5%) 50,600.80

Total 1,062,616.72

Source of Fund
Description Amount (in Php) Percentage (%)

Equity 1,062,616.72 100%

Liability - 0%

Total 1,062,616.72 100%

47
 Business Assumptions

1. Total cost will be contributed by the partners.

2. The land will be procured amounted to Php
500,000.
3. The contingency fund will be assumed 5% of the total project cost.
4. The wages and salaries will cost 21,500 and has an increase of 1% annually.
5. The total estimated cost of the building is Php 283, 738.
6. Permits and licenses is Php 2,292 annually.
7. Machine and equipment will be amounted to Php 125,670.
8. Utilities expense will be amounted to Php 52,620 annually and an increase of 3% annually.
9. The annual sales will be based on the number of a product supply.
10. 10% of supplies are expected to be inventoriable at year end.
11. The partner annual withdrawal will be 50% of the net income and is only allowed on the latter.

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49