CHAPTER 1

BACKGROUND OF THE STUDY

The demand for more organic and natural products have more than the past several years
increased due to environmental awareness, trends set by young consumers and the willingness to
stay healthy and live longer (Delventhal, 2020). Consumers want transparency in their purchases
wherein they are knowledgeable of where the products came from and what ingredients are in the
mix. This level of consciousness is justified by the fact that there is far more available junk and
processed food produced in the market than there is of healthy and organic produce that one has
to make a conscious choice of staying healthy and having a balanced diet.
In the Philippines, it is known that farmers face a constant uphill battle. They have the most
vulnerable livelihood because the Philippines has a tropical climate, it is frequent that natural
disasters (i.e. storms and floods, el nino) come and go. These extreme weathers are not only
unpredictable and catastrophic, but it also disrupts crop productivity not to mention implementing
policies (i.e. rice tariffication law) that further harm the agricultural sector. Moreover, a key goal
for the Philippine government is to sustain agricultural production growth to help achieve inclusive
growth and poverty reduction (Rosegrant, Perez, Pradesha, & Thomas, 2016).
Metro Manila in particular, according to 2019 statistics, is the world’s most densely
populated city (Leavy, 2019). And to think of occupying a plot of land to plant on and eventually
harvest with, compared to the province, is almost impossible because of surrounding buildings,
houses, subdivisions and settlement areas. In addition to population density in Manila, agriculture
is the most significant activity that contributes to soil erosion--wearing away of a field’s topsoil.
Moreover, there is a need to come up with a way to be able to grow organic and natural produce
in urban areas like Metro Manila without having to take up much space and in doing so avoiding
soil erosion altogether. Hence, the proponents of this study introduce Hydro-Farmily--a business
that provides an alternative for growing organic produce in urban areas.

BUSINESS/BRAND NAME
The prefix “hydro” was shortened from the word “hydroponics” which is a method of
growing plants without the use of soil. In an article where hydroponics is broken down, Woodard
(2019) explains, “This [hydroponics] system fosters rapid growth, stronger yields, and superior
quality. When a plant is grown in soil, its roots are perpetually searching for the necessary nutrition
to support the plant. If a plant’s root system is exposed directly to water and nutrition, the plant
does not have to exert any energy in sustaining itself. The energy the roots would have expended
acquiring food and water can be redirected into the plant’s maturation. As a result, leaf growth
flourishes as does the blooming of fruits and flowers.” Moreover, Hydro-Farmily not only markets
to individuals and households, but to restaurants and supermarkets as well, thanks to its
accessibility. After all, the main goal is to organically build healthy relationships that grow
together as one big, happy Farmily.

BUSINESS LOGO

The business come up with a name of Hydro-Farmily, made from two words – Hydro means
water and Farmily is made up from the words Farm and Family. The idea is to create a business
of Hydroponics. As you could see in the logo, there are plants hugging which symbolizes Family
– A father, mother, and a child. The roots and water portrait the system of Hydroponics. The blue
curve represents proper maintenance which is a necessity to run the business smoothly. Lastly,
The yellow shape arrow represents roof which symbolizes shelter, since the operation of the
business is indoor.

BUSINESS SLOGAN
Hydro-Farmily: “Go, Grow, and Flow!”
MISSION
To use hydroponics as the primary method to grow and provide fresh, organic, and
affordable agricultural produce with little to no environmental impact such as the use of pesticides,
herbicides,
or genetically modified seeds.

VISION
To use innovation and sustainable eco-friendly materials to provide food security for every
individual.

FORM OF BUSINESS ORGANIZATION

Indoor-Hydroponics Farming will adopt a general partnership form of business

organization wherein its group of people will contribute in the aspects of the business, including
money, property, labor, and skills. Indoor-Hydroponics Farming opted for the partnership form of
business for it is easy to establish and in decision making, the points of every partner will be
considered. Additionally, the business affairs are private and there are limited external regulations.

BUSINESS LOCATION

Indoor-Hydroponics Farming is a garden set with an area of 500 square meters, which is
located at Cainta, Rizal Philippines. It is located near Ortigas, Pasig which made the Indoor-
Hydroponics Garden more accessible by its target market.
STATEMENT OF THE PROBLEM
This study aims to determine the sustainability of Indoor-Hydroponics farming as
compared to the traditional way of farming. Specifically, it will also seek to answer the following
questions:

1. How much more sustainable is Indoor-Hydroponics farming as opposed to the traditional way
of farming?
2. Is there a market for Indoor-Hydroponics farming?
3. How does Indoor-Hydroponics farming influence the farmers/gardeners/business ventures in
terms of the following factors?
3.1 Affordability
3.2 Organic/Freshness
3.3 Eco-friendly
3.4 Time Management
3.5 Sustainability
SIGNIFICANCE OF THE STUDY
The accomplishment of this undertaking are deemed beneficial to the following:

Potential Entrepreneurs and Businessmen

This study hopes to encourage potential business venturers to think out of the box and
determine what needs in the market are still not being met and motivate them to be creative and
innovative especially in this day and age where consumers are looking for something different.
And to assist those businesses who plan to enter the food industry to choose the better alternative.

Local Farmers
This study also hopes to encourage local farmers to explore different ways in which they
can use what resources are available to them and turn it into an addition to their livelihood. And to
also bring an awareness about the potential market of indoor-hydroponics farm systems as
businesses in agricultural crops and cuisine industries

Teachers and Students

This would serve as a reference material for future studies particularly those in the field of
business and agriculture.

Future Researchers:
This study helps in creating a frame of reference regarding the utilization of a hydroponics
system as means of growing organic vegetables and to hopefully be an answer to some of their
possible questions with this application.

SCOPE AND DELIMITATION

The scope of this study is focused on the inner workings of a hydroponics system and be
able to determine if there is a potential market for this mode of growing fresh, local and organic
produce, and whether or not it is sustainable as a business venture and an alternative to traditional
farming. This study is limited to urban areas particularly Cainta, Rizal Philippines.
DEFINITION OF TERMS

Available Junk - unhealthful foods that contain high calories from sugar or fat and are less
nutritious than organic foods which are fruits and vegetables.
Business Venturers - businessmen who are willingly to take the risk.
Coco Peat/ Coco Coir - provides an alternative to potting soil featuring high water retention,
suitable aeration and antifungal benefits.Coco peat increases the porosity of the potting mix.
Hydroponics - process of growing plants in liquid substance with added nutrients without the use
of soil.
Indoor-Hydroponics - growing plants inside the house which is soil-free.
Population Density - huge population in the place or area.
Settlement Areas - areas that have a fixed plan.
Uphill Battle - farmers facing struggles which are impediment.

REVIEW OF RELATED LITERATURE

The Philippines as an agricultural country is rich in soil and vegetation. Due to its
population, some areas are congested thus no longer have areas for plantations. This year, the
country is continuously experiencing a dramatical state of calamity because of covid-19 which
affects the livelihood of many people and this is one of the factors why in this study sparks the
idea of “Indoor-Hydroponics”. A protocol from the government to fight the pandemic was a
community quarantine, consequently, people have a limited access to resources. This section of
the study includes ideas, literature, synthesis about hydroponics and reviews are as follows.

“Indoor-Hydroponics” is a type or technique of agriculture, it is more efficient and does

not need a wide range of soil or hectares of land. As agribusiness, this way of cultivating crops
and vegetation is profitable. Hydroponics can produce crops and vegetables such as lettuce without
the means of high costs (Sarian, 2020). Hydroponics can be done in recycled materials that is the
reason why it is efficient, it does give production of vegetation and can help the environment from
plastic bottles. Although “Indoor-Hydroponics” is not able to meet the demands in the market, it
is suitable for small or bigger households (Sarian, 2020).
 Because of the advantages of growing vegetables the hydroponics way, a lot of enterprising
people are now considering hydroponics farming as their full time project. (Sarian, 2020).

Ensuring the quality and freshness of vegetables, hydroponics is commendable for its
purpose. It can produce arugula, basil and kale at 18 degree celsius. Hydroponics minimizes food
miles and logistics. There are high-tech challenges as to the use of pesticides, electricity and
chemicals (Tan, 2020).

Legally, “Indoor-Hydroponics” or “Hydroponics” is complicated and probably

challenging, due to lack of firm and defined regulations. This type of business has indeterminable
legal basis because this type of agribusiness can be done in undeveloped small spaces and rentals,
although this agribusiness will provide private funding, initial startup for branching out hydroponic
and profits. (Hoops, Olshansky, Rosen & Tavares, 2018).

When it comes to pitting hydroponics vs. soil, hydroponics offer a whole lot more than a
dirt-free way of bringing up your usual crops. Hydro grows help increase yields while saving
growers time, money, and effort, all while helping you kiss soil (and the problems it brings with
it) goodbye, for good. (Rimol, 2017).

No matter how you look at it, hydroponic growing looks more and more like the way of
the future - not only environmentally-friendly, but more economical than traditional methods for
better and more consistent results. And best of all, new and affordable hydroponic systems make
hydroponic growing open to any and all willing to give it a go, and many of those who make the
switch find the benefits and long term profitability far outweigh the cost to get started. (Rimol,
2017).
INVESTMENT COST

INVESTMENT COST 33 UNITS OF HYDROPONICS SYSTEM

Quantity Per Unit Price Cost

Raw Material Unit Quantity
Unit (Php) (Php)

180 cm 2 66 126 8,316

100 cm 2 66 115 7,590
Kiln Dried Woods
104.3 cm 2 66 115 7,590
140 cm 4 132 120 15,840

Nails 3”; 3 kgs 1 33 40 1,320

Length = 170
PVC Pipes cm; 12 396 893.53 353,838
Width = 15 cm

Length = 117
PVC Pipes cm 2 66 711.21 46,940
Width = 7 cm

PVC Flat Cup 15 cm 24 792 76.67 60,723

PVC Pipe Elbow 90o 28 924 38.65 35,713

Pipe Coupler w/ door 27 cm 10 330 96.55 31,862

PVC glue 1 33 75 2,475

Fill Tube 400 cm 1 33 125 4,125

Electric Air Pump 220 Volts 1 33 1,000 33,000

Air Stone 1 33 220 7,260

Water Pump 1 33 250 8,250

Tank/Reservoir 500 gallon 1 33 470 15,510

Total (Fixed) ₱601,014.48

ESTIMATED MONTHLY EXPENSES

Expenses Quantity Monthly Yearly

Rent of workspace 500 sqm 100,000 1,200,000

Vehicle 1 20,000 240,000

Budget for Utilities (Water,

Ave. 40,000 480,000
Electricity, etc.)

Total ₱1,920,000

PLANTING MATERIALS (adjust to last one year)

Quantity Per Unit Price Cost

Raw Material Unit Quantity
Unit (Php) (Php)

Net Cup 3" 54 33 12 396

Expanded Clay Pebbles 3 kg 1 33 600 19,800

Coco Peat/ Coco Coir 5 kg 1 33 200 6,600

Snap Solution 500 ml 10 330 350 115,500

Carrot Seeds 100 grams 1 5 300 1,500

Lettuce Seeds 100 grams 1 5 300 1,500

Cabbage Seeds 100 gram 1 5 1,700 8,500

Tomatoes 100 grams 1 5 500 2,500

Basil 100 grams 1 5 250 1,250

Kale 100 grams 1 5 1,500 7,500

Cucumber 100 grams 1 5 700 3,500

Celery 100 grams 1 5 750 3,750

Bell Peppers 100 grams 1 5 750 3,750

Total ₱176,046

TOTAL INITIAL INVESTMENT COST ₱2,697,060

 Hydro-Farmily will have an initial investment of P2,697,060. The partners will contribute
in equal amounts to cover expenses to be incurred to launch and sustain the business.

MODE OF FINANCING

The general partners shall provide the needed funds to form the capital of the partnership
to sufficiently launch the business. Each shall contribute P400,000 to obtain the total of P3,600,000
which shall be enough to sustain not only the initial investment costs during the first year, but also
the potential start-up losses of the business.
 HYDROPONIC SYSTEM
(Draft)

Raw Materials: (1 Hydroponic System)

• 2 pcs. of 182 cm Kiln Dried Wood
• 2 pcs. of 100 cm Kiln Dried Wood
• 2 pcs. of 104.3 cm Kiln Dried Wood
• 33 pcs. of 3”; 3 kgs Nails
• 4 pcs. of 140 cm Wood
• 12 pcs. of 170 cm PVC Pipe
• 2 pcs of 117 cm PVC Pipe
• 24 pcs of 15 cm PVC Flat Cup
• 28 pcs 90o Elbow PVC Pipe
• 10 pcs of 26.86 cm Pipe Coupler w/ door
• 54 pcs Net Cups
• 400 cm Fill Tube
• Electric Air Pump
• Air Stone
• Tank / Reservoir
SIDE VIEW
182 CM

Small PVC Pipe

Width = 7 cm

100 CM
 BIBLIOGRAPHY

Delventhal, S. (2020). New Generation of Consumers Increase Demand for Natural Products.
Retrieved from https://www.investopedia.com/articles/investing/022217/study-shows-surge-
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Hoops, Olshansky, Rosen & Tavares (2018). Copenhagen’s Case for Urban Farming: A Feasibility
Study.

Worcester Polytechnic Institute. Retrieved from https://web.wpi.edu/Pubs/E-project/Available/E-

project050118124600/unrestricted/Copenhagens_Case_for_Urban_Farming.pdf?fbclid=IwR10h
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20watered%20soil.&text=With%20hydroponics%2C%20you%20can%20get,efficient%
20system%20than%20ever%20before

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Tan, Y. (2020). Millennial-Led Hydroponic farm grows vegetables right in the middle of new
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