I.

Description of the Project

CASA Pineapple Farm, stands for the owners’ surname, Catapia, Arena, Sadili and
Alfiler, they aim to generate a pineapple farm, having their knowledge and passion to operate
this business. This feasibility study will help them assess the possible maximum return of
investment (ROI), success of the project, determine the weakness and threats to cope up and
strengths and opportunities to nourish in the future.

Pineapple (Ananas comosus), is a tropical plant consisting of multiple edible

coalesced berries from the family bromeliaceae, and primarily grown for its nutritional,
commercial and industrial value. It is a terrestrial herb that grow up to 2.5 to 5 feet high with
3 to 4 feet width, having a short, stout stem, and waxy, straplike leaves with 20 to 72 inches
long. The pineapple has four major varieties, namely, Smooth Cayenne, Queen Victoria, Red
Spanish, and Pernambuco. It may cultivate from crown, and flower after after 20-24 months,
after six months it will start to flower. The pineapple is a good source of vitamin A, B, and C,
and minerals, such as, magnesium, calcium, potassium, and iron (Reddy, 2019). Moreover,
aside from pineapple being grown for its fruit or for processed, the leaves are also used in the
production of textile fiber that use in manufacturing luxurious and famous piña cloth, twines,
and cordage, and utilize in making wallpaper and furnishing.

The global production of pineapple at the year 2014 exceeds to 24 million tons,
having US$7 billion, and Philippines rank second as producer. In the Philippines, there is
712.64 thousand metric tons of pineapple produced at the year 2020, and Northern Mindanao
is top producer compromising 64.9% to the total production, equivalent to 462.32 thousand
metric tons (Philippine Statistic Authority, 2020).

Identification and exploration of business scenarios

There are factors that may affect the maximum potential of the business, and it may
categorize to two factors: physical and socioeconomic aspect.
 Physical aspect, in this category includes the soil and climatic requirement of
pineapple, location and site characteristic, and the presence or frequency of pest may greatly
influence the sustainability of the operation. Beside this is the management and leading the
farm business, it must be long term plan, that even it reaches the maturity saturation have a
plan to revive the sales and continue to produced.

Socioeconomic aspect, it reflects the society needs, and the entrepreneurs wants to
highlight the pineapple's value in that need. The location's culture, and the value of peso or
the demand and supply of pineapple dictates if it will patronize or not. Some of the foresee
scenarios regarding to this are: Once that there is oversupply, it could offer promos or
discounts to convince them to buy, offer a suki card that can give them a dividend once they
reach the target amount to buy, produce a value adding products.

The study in pineapple's production, aim to have long lasting production, and produce
quality pineapples that pass the standards for export products.

Describe the project and alternative scenarios

The project is all about producing and storing quality pineapple fruit. To attain and/
or increase its potential yield, the introduction of new and effective pineapple farming
practice is recommended. Hence, the management will must ensure to find the most suitable
variety in the area, Brgy. Munting Parang, Tagkawayan, Quezon. Moreover, the intervention
of science and technology for promoting innovative farming practices, such as the used of
machineries in in land preparation, various ways of improving soil fertility, using quality
planting materials, and following the recommended fertilization and irrigation.
 Select a sunny area with well-drained ground. Sweet potatoes be planted in
sandier soil and lots of air space in the soil for roots to reach down. The
Land Preparation field is adequate  for the vines to grow (3 feet between rows so the vines).
Mix organic stuff into the soil to a depth of 8 to 10 inches. Make use of
rich, well-drained soil.

When the soil temperature reaches 60°F, plant the slips on a warm,
cloudy day.
Trim the base leaves, leaving just the upper ones.
Planting Set the slips 12 to 18 inches apart, sufficiently enough to bury the roots
The production and
stages areup
stem asto
follows:
the leaflets (sweet potatoes will develop on the nodes).
Water extensively for 7 to 10 days after applying a high-phosphorus
liquid fertilizer to ensure that the plants root effectively.
Corner the sweet potato plants with 5-10-10 fertilizer 3 to 4 weeks after
transplantation. Use extra if you have sandy soil.
Weed the sweet potato beds on a regular basis beginning two weeks after
planting.
Maintenace Deep digging with a shovel or other equipment that disrupts the feeder roots. 
Water on a regular basis, particularly during the summertime. Deep irrigation
during sunny, dry times will improve to enhance yields.
Sweet potato vines should not be trimmed; they ought to be sturdy.
Reduce watering late in the season to minimize fracturing of the tuber's coat
during preservation.

When the potatoes grow large enough for a meal, you may begin digging
them up.
Gather when the leaves and ends of the vines begin to turn yellowish,
which occurs approximately 100 days after planting.
Harvesting To prevent harming the tubers, loosen the soil around each plant (18
inches around, 4 to 6 inches deep). Remove some of the vines.
Pull up the primary top of the plant and start digging up the roots by
manually. Pick the sweet potatoes with care since they bruise quickly.
Remove any extra dirt by shaking it off; do not rinse the roots.
Harvest should be finished by the first early fall..

Fig. 1. The recommended fertilizer for pineapple in small farm

Fig. 2. The recommended classification for smooth cayenne pineapple

Relationship to the surrounding geographical area

The production area is located at Tagkawayan, Quezon having 1hectare area due
to the higher demand of consumers.

The economic and social impact on local community of having the pineapple
production are the following:

 Job opportunities
 Tourist attraction
 Availability of pineapple in the locality
 Contribute to economy of LGU
 Nutritional benefits
 Making business out of the pineapple

II. Market Feasibility

Industry description
 The C.A.S.A. pineapple farm accepts sellers mainly for wholesalers/retailers with
their products. However, people who walk-by in the farm can also readily purchase the
product depending on their needs and interest.
The farm also uses social media in order to grow influence and engagement to its
potential customers. The company has a Facebook page that you could seek for. The
specification, promos and sales will be included.
While the project receives support from the consumers, it seems to look forward on a
positive direction to the industry and currently on the emerging state and aiming to grow.

Industry Competitiveness

There are few small producers of pineapple in Tagkawayan, Quezon that are lacking
to meet the supply and the demand of consumers. Thereby, in order top up, the company has
the main goal to produce high-quality season and off-season pineapple.

The price is depending mainly on the quality of the pineapple produce. It is very
significant to sustain the quality to build name and trust of the consumers and assurance of
market.

Market potential

The product can be purchased in terms of being a commodity product and

undifferentiated product. Customers can purchase it as a raw fruit and as an undifferentiated
product after it is processed into a new form product. However, this product can compete on
the basis of price and availability only.

The utilization of canned and pineapple fruit has been expanding relentlessly.
Considering the increasing demand for pineapple locally and overseas, an increment in
pineapple generation is fundamental. The selection of the most excellent quality of fruit to
the production will be valuable guide for the farmer for a beneficial undertaking.

According to the Department of Agriculture, the prospects for pineapple are bright.
The domestic demand over the next ten years is conservatively estimated to grow by an
average of 4% to 7% every year. Moreover, if small and medium-scale growers and
 processors enlarge their operation, annual growth of pineapple exports could be higher by 7%
in value and 7% in volume.

Table 3. The annual total demand of pineapple in Quezon

Year Population Per capita Total demand Growth rate/Annual
consumption(kg) change
2000 21,252 9.31 197,856.12
2005 23,911 9.25 221,176.75 -0.1179%
2010 25,186 10.76 271,001.36 -0.2253%
2015 26,884 11.16 300,025.44 -0.1071%

Table 4. The projected annual demand of pineapple from 2017-2021

Year Volume Growth rate/Annual change
2017 300,475.78 -0.1501%
2018 300,926.79 -0.1501%
2019 301,378.48 -0.1501%
2020 301,830.85 -0.1501%
2021 302,283.90 -0.1501%

The increase in per capita consumption and total demand over the previous years
is shown in table 3. As a result, there is a positive growth change. The projected annual
demand (table 4) of pineapple exhibits a rise in total volume from 2017-2021.

Access to market outlets

Wholesalers or retailers of pineapple and even the walk-in buyers are expected
customers. In such, the company is providing vehicles such as jeepney and truck for the
transportation and maintenance of the quality and shelf-life of the produce.

The commodity will go through first from the producer to wholesaler/retailer to

final consumer.

Producer

Wholesaler/
Retailer
 Fig. 1. Distribution channels of marketing pineapple

III. Technical Feasibility

Facility needs

The production area is about 1 hectare. The needs for buildings and equipment are
the following:

 Machinery (hand-tractor)
 Irrigation (sprinkler, pipes, and garden hose with ply)
 Storage room (refrigerator)

Suitability of production technology

Appropriate technology must be taken into consideration. This business involves an

understanding resource, site conditions, design criteria, and other factors. Since the project is
focus on pineapple production there is a need for materials such as sprinkler, pipes and
garden hose with ply, hand-tractor for land preparation and storage room to prolong the
shelf-life of the commodity.

Technology providers

The materials will be purchased in Naga City because of the cheaper cost, high-
quality of the equipment and location consideration. In addition, seeking help to associations
that sells machinery like hand-tractor will performed. The skilled operator must only be
permitted to use the hand-tractor for efficiency and long life-span; and also only few people
are allowed to gain access to the storage room in order to maintain safety.

Raw Materials
 The minimum usage of the materials is about the 80% of the supply gathered from
small farmers each year which means, estimated value or the amount of the raw materials
always depends on the total usage each year or annually.

Accessibility to raw materials in the future may be higher or can be ensured in terms
of the numbers of the small farmers who supply raw materials. The reason is depending on
the price or the income that those small farmers can obtain.

Quality assurance may be also higher in rate because of the competition between the
small farmers who supply these raw materials. Price may also affect the accessibility to these
quality raw materials.

The raw materials and other inputs needed are as follows:

A. Materials Quantity Unit

Pineapple Slips 60,000 pcs.
Fertilizers
14-14-14 12.50 bags
16-20-0 12.50 bags
0-0-60 16 bags
46-0-0 32 bags
Other Supplies
Ethrel 165 ml
CaCo3 1,000 g
Urea 65 kg
Irrigation Supplies
Sprinkler 10 pcs.
Pipe #1 40 100 m
Pipe #2 8 100 m
Pipe #3 8 100 m
Garden hose with ply 11 100 m

Manpower requirements

Skilled laborers are needed to perform the farm activities such as land
preparation, planting, fertilizer application, weeding, flower induction, and irrigation. As
such, the salary is about 500 pesos per day.

IV. Financial/Economic Feasibility

 Total Capital Requirement

The capital requirement to start the production includes the variable and fixed
inputs. Its estimated total capital requirement is about

I. Gross Sales Quantity Unit Price/Unit Amount (Php)

A. Sweet potato
Various Size 105, 000 Kg. 10 1,050,000
B. Sweet potato 87,500 pcs. 2 175, 000
slips
Total Gross Sale 1,225,000

II. Fixed Cost Quantity Unit Price/Unit Amount(Php)

Land 1 ha 250,000 250,000
Storage Facilities 1 pcs. 200,000 200,000
Hand-Tractor 2 pcs. 55,000 110,000
Total Fixed Cost 560,000

III. Operating Expenses Quantity Unit Price/Unit Amount(Php)

A. Labor Cost
Land preparation 8 MAD 600 4,800
Planting 12 MD 350 4,200
Fertilizer application 15 MD 350 5,250
Weeding 20 MD 350 7,000
Flower induction 10 MD 350 3,500
Irrigating 4 MD 350 1,400
Total Labor Cost ₱ 26,150.00
B. Material Input Cost
Sweet potatoes for sweet potato 3,500 pieces 2 7,000
production
Fertilizers
14-14-14 12.5 bags 1,086 13,575
16-20-0 12.5 bags 1,240 15,500
0-0-60 16 bags 1,110 17,760
46-0-0 32 bags 911.50 29,168
Other Supplies
Ethrel 165 ml 1.50 247.5
CaCo3 1,000 g 0.50 500
Urea 65 Kg 18.23 1,184.95
Irrigation Supplies
Sprinkler 10 Pcs. 250 2,500
 Pipe #1 40 100m 150 6,000
Pipe #2 8 100m 410 3,280
Pipe #3 8 100m 300 2,400
Garden hose with ply 8 100m 320 2,560
Total Material Input Cost ₱ 101,675.45
Total Operating Expenses ₱ 26,150
Total Fixed Cost ₱ 560,000
Total Cost ₱ 687,825.45
IV. Net Income ₱ 537,174.55

Equity and Credit Needs

Budget Expected Costs and returns of Various Alternatives

Profitability indicators

A. Return on Investment (ROI)

ROI=Net Profit/Total Investment x100

=₱537174.55/₱687,825.45 x 100
=78.09%

B. Cash Payback Period

CCP=Total Investment/Net Profit
=₱687,825.45/₱537174.55
=1.28

C. Return on Total Operational Expenses (RTOE)

RTOE=Net Income/Operating Expenses
=537174.55/26,150
=20.54%
 D. Return to Labor=Total Revenue-All Cost
=1,225,000- 687,825.45
=₱ 537,174.55

E. Labor or Revenue Ratio=Total Labor Cost/Total Revenue

=26,150/1,225,000
=0.0213

F. Labor or Income Generation Efficiency=Net Income/Total Labor Cost

=503,240.55/26,150
=19.24%

V. Organizational/Managerial Feasibility

The use of a formal organizational structure is one of the characteristics that distinguishes
small-business operations from large-business operations. The organizational structure of any
developing company, such as RUAN Sweet Potato Farm, is critical in providing guidance and
clarity on certain human resource challenges, such as managerial authority. Even in the early
stages of the company's development, we consider formal organizational structure.

Organizational structure refers to the coordination of individual and team work within an
organization. Individual effort must be coordinated and controlled in order to meet the goals and
objectives of the organization. Structure is a critical tool for achieving coordination because it
defines reporting relationships (who reports to whom), formal communication routes, and how
individual acts are linked together. Organizations can be structured in a variety of ways, each
with its own set of advantages and disadvantages. Although any poorly managed structure will
have issues, some organizational styles are better suited to specific environments and jobs.

Angelica Coronado and Ruth Lozada are the farm owners of RUAN Sweet Potato Farm.
The farm manager is Ruth Lozada, and the marketing/financial manager is Angelica Coronado.
The laborers are skilled farmers in Brgy. Nagsinamo Lucban, Quezon.
 FARM
OWNERS

MARKETING/
FARM
FINANCIAL
MANAGER
MANAGER

LABORERS

Figure 2. Organizational structure of sweet potato production

Form of Ownership

RUAN Sweet Potato Farm is a partnership. A partnership is formed when two or

more people share ownership of a single business. The law, like that of sole proprietorships, does

not distinguish between the business and its owners. A legal agreement has been entered into

between the partners outlining how decisions will be made, earnings will be divided,

disagreements will be resolved, future participants will be accepted into the partnership, partners

can be bought out, and the partnership will be dissolved if necessary.

Identification of manager

Ruth Lozada is the farm manager at RUAN sweet potato farm, and Angelica Coronado is
the marketing/financial manager.
A farm manager oversees the day-to-day operations and upkeep of a farm, which could be a
crop, horticultural, or animal operation. The farm manager oversees crop fertilization, planting,
spraying, growing, and harvesting. They are also in charge of all crop production issues. This
includes scouting for land, planting, fertilizing, weed control, harvesting, grading, and keeping
records. The person in charge of a company's or organization's equipment is known as an
equipment manager. Among their responsibilities are purchasing, maintenance, repair, inventory,
transportation, storage, cleaning, and liquidation. They must provide all required equipment for
the job, whether on-site or off-site. A marketing/financial manager is in charge of promoting and
positioning a company's brand, as well as the products and services it sells. Marketing managers
are typically hired to create marketing campaigns that increase brand awareness and attract new
customers to the company.

Availability of consultants and service providers

Business consultants almost never use the word "issue"; instead, they discuss ways to
increase value. When asked what they do, any consultant will most likely respond, "I'm in the
solutions business." Despite the criticism that business consultants frequently face, they can add
value to your middle-market company if you know when and why to hire them. Consultants can
assist with a wide range of business issues, and different types of consultants bring unique
perspectives to the table. The owners and managers of RUAN sweet potato farm also serve as
consultants because they have prior knowledge and skills in agriculture. A person or company
that provides services to another person or company is known as a service provider. A service
agreement governs the delivery of services by a service provider to a business. They are looking
for a service provider to repair any damage to the business's equipment and facilities.

VI. CONCLUSION

Describe Alternative Business Scenarios

RUAN sweet potato farm has a lot of market potential. Although the preparation
for sweet potato production takes time, its marketing plan is simple to implement.
Equipment and machinery are easily available in the local market and industry. The
 resources required are quite costly, but the profit is also quite high. The issue arises when
the demand for sweet potato in the area falls significantly as a result of the potential
presence of competitors in the area. To address this possible scenario, the marketing
manager may conduct online product promotion on various online platforms such as
Facebook, Twitter, YouTube, and so on in order to gain more customers and broaden the
range of target market.

Recommendation

Sweet potato production is a lucrative business. However, it has some environmental

drawbacks. Farmers add nutrients to their fields with chemical fertilizers and animal dung, which
provides crops with the nitrogen and phosphorus they require to develop and produce the food
we consume. However, if nitrogen and phosphorus are not properly absorbed by developing
plants, they may be lost from farm fields, threatening downstream air and water quality. This can
be avoided by implementing the following measures: adopting nutrient management techniques,
using conservation drainage practices, ensuring year-round ground cover, planting field buffers,
implementing conservation tillage, and participating in watershed efforts.