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Business Plan in Organic Rice Trading PDF
Business Plan in Organic Rice Trading PDF
Rationale
LAMPUFACO is the cooperative whose members are mostly farmers. It has a total membership of 198
individuals in which 10 of them are presently adapting organic farming at an average of 1 hectare per
farmer individuals. The coop engages in rice milling, hauling, solar dryer and rice retailing, selling of
organic inputs. Most of the member was applying organic inputs to their farm. The value of this organic
rice was still the same to the value of the conventional farm product since most of the consumer is not
conscious about the benefit of this organic rice. (marketing for organic rice)
In the other side the unscrupulous traders still taking advantage since the organic farmers still delivering
their product to them.
Since LAMPUFACO has owned Post Harvest Facilities, they are looking forward to engage in trading of
organic rice in their locality.
Objective
1. To increase farmers’ income through adaption SA/organic farming technology;
To increase consumers’ awareness/ consciousness on the benefit of organic
2.
products
3. Access to better market of farmers’ organic
To save the environment in pollution and poison (eco-friendly technology)
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BUSINESS PLAN
Expected Results
% increase of farmers’ income from organic rice farming and access to better
1
price (lessen cost of production, premium price for organic products)
Increase awareness on the benefits of organic resulted to increase demand for
2
organic products
3 Access to better price of product
Generate income from the enterprise – expand enterprise/service to members
4 Healthy community with healthy people eating healthy food
Resources/Assets
LAMFUPACO has able to trained their members particularly farmer in using and
Skills/Ability formulating organic inputs (managing business, trainers/practitioners on OA/SA},
Technology on production of inputs such as organic fertilizers, IMOs, FAA, FPJ,
Skills in financial preparation and analysis as aid in decision-making
Assets Ten (10) hectares area planted to rice/organic rice
PHF (warehouse, rice mill, solar and mechanical dryer, hauler truck and
concoction center with organic inputs) this entire project has formulated PSP
and it is well implemented.
Functional Officers and staff/ full-time operations staff
Lack of business plan of organic rice, timely preparation of reports:
Areas of Improvement cash flow, income statement, manager’s operations report
Lack of expertise in product packaging and development.
Lack of product promotion
Market
Target Market
Target market is the government employee of La Paz, Agusan del Sur; Other
1.
institutional market
2. Health conscious individuals
Local market : within the municipality
Demographic This organic product is good for food in all ages particularly in health conscious
Description customers. Class a, b, c
Competitors Local market, vendors, rice traders in La Paz, Agusan del Sur
Strikers during harvest season
Pricing
Per Kilo 35 pesos per kilo
Per Sack 1,750 pesos per sack
Distribution
From the farmer, the LAMFUPACO will buy their organic product and process it
Form
to rice. The LAMFUPACO promote and canvass it to the local government
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BUSINESS PLAN
Organizational Plan
G.A.
EDCOM.
Organizational Chart SECRETARY
TREASURER
MANAGER
3
BUSINESS PLAN
Technical/Production Program
Costing
Particulars Price/kilo
Palay ( Farm Gate Price) 14.00
Hauling fee .10
Labor cost .10
Drying fee .20
Milling fee 1.75
Empty sack .20
Tie box .04
Total cost per kilo 16.39
4
BUSINESS PLAN
Assumptions:
1. Recovery of Palay
o Recovery from drying is 80%
o Recovery in milling is 62%
2. 100 farmers are given financial assistance of the cooperative at 10,000.00/ha. This has a
total of 1,000,000.00 total exposures.
3. Average production per hectare is 70 bags per ha. Less allocated for consumptions 15 bags
shall have a 55 bags net for sales of the farmers.
4. Fifteen bags of palay per farmer shall be retaining at the farmers for their consumptions.
Computations in pricing
Computation:
- Purchases- 100 has. X 70 sacks/ha = 7,000 bags less, 1,500 for consumptions = 5,500.00
x 55 kgs./bag = 302,500 kgs. X 14.00/kg. = Php 4,235,000.00
- For consumptions is 15 bags/ha. X 100 has = 1,500 bags
- Overhead expenses of production to Milling are 2.39/kg.
- Recovery on drying is 80% of 302,500 kgs = 242,000 kgs.
- Recovery of milling is 62% of 242,000 kgs. = 150,040 kgs
- A sale is 150,040 kgs. X 37.00/kg. = Php 5,551,480.00
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BUSINESS PLAN
Financial Projection
Income Statement
In one (1) cropping season only (6 mos.)
Profitability:
Sensitivity Analysis:
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BUSINESS PLAN
Though it is laborious but it require minimal amount of money to spend. It was also found out that due
to the continuing taking advantage of unscrupulous traders, the organic product was still the low price
and the unscrupulous trader has enjoying the very high price of rice.
The cooperative see this situation, therefore they want to engage in organic rice trading. The
LAMFUPACO provide organic inputs to the farmers and the market of this organic rice will be in
LAMFUPACO. The income of this was in the cooperative, and the members was benefited the income.
Other benefit is to provide safety food and to care and balance eco-system.
Development Impact
Farmers: continuing trainings in formulating organic inputs, require minimal amount of farm
inputs, generate income, provide safety food and contribute care to the environment.