Executive Summary

Filipinos love to explore different places in local and international destinations just
to try out the food and local delicacies from different cultures. A 2019 survey by global
market research firm YouGov affirms this, and also shows that our love for food is
unmatched in the world. Filipino cuisines have been influenced by various cultures,
resulting to unique flavors and ingredients. These food delicacies were continuously
improved and developed through different programs initiated by the government and
other organizations. These programs enable local communities to develop, promote,
and support the products and services that will enrich the culture as well.

One of these programs is one that is launched by the Department of Trade and
Industry which is called One Town, One Product (OTOP) program. This aims to support
Micro, Small and Medium-scale enterprises (MSMEs) in terms of innovation in hope that
it will help drive inclusive local economic growth. The program enables localities and
communities to determine, develop, support, and promote products or services that are
rooted in its local culture, community resource, creativity, connection, and competitive
advantage. It also endeavors to capacitate local entrepreneurs to innovate and produce
market-ready products and services.

Batangas State University initiated a similar program by establishing the Food

Innovation Center. The center serves as a hub for innovations on product/process
development, and provides marketing strategies, food analysis, food safety and quality
training. This will encourage more entrepreneurs in turning their business ideas into a
reality by grabbing the opportunity in using the center’s offered capabilities. This center
is not only limited to the BatStateU community, but it will also serve MSMEs in Batangas
Province where it envisions to transform the livelihood of the communities.
 Rationale

Batangas State University Food Innovation Center, which was established since
2014, is initiating a project called CALABARZON Food Solutions Hub (C-FOSH)
Batangas. In line with the this, the center is requesting for the acquisition of equipment
needed to provide services in terms of packaging, preparation, and processing of food
products. The center’s main objective is to provide MSMEs and the community with
services that will help in innovating and developing their products.

The center is located at Batangas State University Main II in Alangilan, Batangas

City. The equipment to be acquired will pe placed in the said university. Because of its
ideal location, MSMEs from within and outside Batangas City can easily access and
grab the opportunity to use the equipment or services provided by the center.

Through the completion of the proposed project, the acquired equipment which
includes oven, freeze dryer, vacuum fryer, food thermometer, and vacuum packaging
for jars, will be able to help MSMEs who are in need of the mentioned equipment.
MSMEs will also be provided with the opportunity to innovate and further develop their
product may it be in terms of preparing, processing, or packaging. Aside from MSMEs
benefiting from the project, students and faculty from within and outside the university
will also have better learning experiences through hands-on use of the equipment to be
acquired.

The proposed project will need a budget amounting to a total of four million pesos
(Php 4,000,000.00) to acquire the needed equipment to provide the mentioned services.
 Technical Aspect

Objective:

The main objective of this project is to expand the food laboratory and improve
services provided to stakeholders in terms of preparation, processing, and packaging of
food products.

Location:

The center is located at Batangas State University Main II in Alangilan, Batangas

City. The equipment to be acquired will pe placed in the said university. Because of its
ideal location, MSMEs from within and outside Batangas City can easily access and
grab the opportunity to use the equipment or services provided by the center.

Services:

1. Freeze Drying

Freeze-drying is a method of dehydration via sublimation—the process of

vaporizing ice. Freeze drying is used to preserve heat-sensitive materials, such as
enzymes, that are naturally found in food. Products from this equipment can be
stored for years without refrigeration, with minimal changes to most of its pre-
drying characteristics, like size, smell, flavor, and nutritional content. This
equipment will be most useful to MSMEs selling dried fruits and vegetables.

2. Vacuum Frying

Vacuum frying is a deep-fat frying method carried out under pressures below
atmospheric levels. Due to vacuum conditions which enable boiling of water and
oil at lower temperatures, resulting products retain most of their physical
characteristics and undergo less oxidation and oil absorption. MSMEs who are
 selling fried products and wants to improve the quality of their product will benefit
from this equipment.

2. Vacuum Packaging for Jars

Vacuumed package can prevent the products (commodities) from oxidizing,

mildewing, rotting, or being affected with damp and ensure the quality, freshness,
taste, color, and storage of products.

The abovementioned services will require the following tools and equipment
with the following specifications:

Particulars Quantity Specifications

68 L Built – In Oven with
Easy to Clean Enamel
Coating
Food Freeze Dryer
1 unit  Cavity material – Enamelled
 Control Settings – Knobs
 Power (W) – 2780
 Dimensions: Built – in Depth (mm) –
550, Built – in Width (mm) – 560, Built
– in Height (mm) – 600
 Stainless Steel
 Voltage (V) – 220 – 240
 Frequency (Hz) – 50/60
1 unit  Capacity / L: 220
 Layers / Pcs: 6
 Electrical Specifications / Volt: 380
 Electrical Specifications / Hz: 50
 Electrical Specifications / Ph 3
 Compressor: French Tecumseh
 Refrigerant Type: R – 404A
 Condenser: Air
 Nominal Power / Kw: 3.2
  Dimensions: W x D x H / mm: 700 x
1000 x 1750
 Inner Cavity size: 560 x 400 x 930
 Net Weight / Kg: 270

Accessories:
 Drying Chamber with bottom plate
 Valve + cap + adaptor
 D – type manifold
 Two stage vane oil rotary Vacuum
Pump with oil
 Pump table
Vacuum Packaging for 1 unit  Pump Capacity: 20 m3 / h
Jars  Pump Capacity (60 Hz): 24 m3 / h
 Bar length: 420 mm
 Total loading: 750 W
 Vacuum pressure (maximum): 2mbar
 Internal Dimensions
 Width: 430 mm
 Depth: 415 mm
 Height: 180 mm
 External Dimensions (W x D x H)
 Width: 484 mm
 Depth: 529 mm
 Height: 448 mm
 Noise level (1m.): 75 dB(A)
 Background noise: 32 dB(A)
Vacuum Fryer 1 unit  Model: GG – 1200
 Diameter: 1200 mm
 Materials Basket Size: 960 * 660 mm
 Basket Number: 2
 Working Vacuum Degree: -0.09 –
 0.098
 Working Temperature: 80 – 120
 Vacuum Pump Power: 15 kW
 Heating Method: Electric/Steam
 Heating Power: 100 kW
 Volume: 120/40/20 kW
 Capacity: 100 – 150 kg/time
 Dimension: 3700*2400*2500 mm

Operation

 The C-FOSH shall be open Mondays to Saturdays from 8:00 AM to 5 PM.

 Food laboratory, packaging, preparation and processing services will be offered
to all clients who are interested to avail the services while discounted service
rates are exclusive to accredited members and MSMEs only.
 Due to the pandemic clients must initially set an appointment by calling FIC
official contact number to avoid over crowding at the facility. Social distancing,
proper hygiene and wearing of protective shield will be observe at all times.
 Clients will only be allowed at the receiving area of the facility. Raw materials to
be used will be weighed in front of the client using a calibrated weighing scale.
Payment of fees will be done after the service/s has been done.
 For oven use, the clients will be allowed to start with their procedure after paying
the initial usage fee of PhP 100.00. This rate is good for ____ days. In case of
exceeding ____ days , he shall made payment of PhP 10 pesos per day until the
end of the usage.
 For freeze dryer, clients will be given permission to use after an initial payment of
PhP ________ which includes security deposit which is refundable once the
experiment or the process is done and no damage occurred in the equipment.
 Use of Vacuum Packaging for Jars
 Use of Vauum Fryer
  The flow chart of C-FOSH operation is shown below :

Market Aspect
• The FIC shall be open to all clients who are in need of the services offered by the
Food Laboratory, however, priority will be given to its accredited members/MSMEs and
community partners.

• Competitors - There are limited business entities within Batangas City and
surrounding municipalities which offers the same services. Most of them just have the
facilities for the use of their own business processes and not for outside clients.

• Strategies / Promotion

• Encourage accredited members/MSMEs and community partners to patronize the

facility by:

• Offering them services in a much competitive rates compared to other

existing facilities
• Linking them to prospect buyers who can avail their products at a more
competitive price
• Offering improved processing equipment use
e.g. – built-in oven which has easy to clean feature due to its enamel
coating
- Food freeze dryer that could take advantage of retaining the food’s
original texture, flavor and nutrition when rehydrated
- Vacuum Packaging for Jars which provides extremely high gas barrier
for the purpose of food preservation
 -Vacuum Fryer which reduces oil content in fried products and preserves
natural colors and flavors of the product (depends to the low
temperature and oxygen content during the process)

• Encourage non- accredited MSMEs/members to patronize the facility by:

• Offering improved processing equipment use

e.g. – built-in oven which has easy to clean feature due to its enamel
coating
- Food freeze dryer that could take advantage of retaining the food’s
original texture, flavor and nutrition when rehydrated
- Vacuum Packaging for Jars which provides extremely high gas barrier
for the purpose of food preservation
-Vacuum Fryer which reduces oil content in fried products and preserves
natural colors and flavors of the product (depends to the low
temperature and oxygen content during the process)

• Encourage other clients through:

• Food Innovation Center/Laboratory tours/small learning sessions and sample

testing
• Scheduling will be implemented to prepare the area within the facility to be
set for this purpose.
• This will also be offered to our students for them to realize the value of this
industry. Especially to the courses which will most likely be working with
the same line of business after graduation.
• Minimum fees will be charged but will not reflect on the FS.
• Market expo and exhibits
• Social media

Market Aspect
Target Market/Clients

• Target market of the FIC includes:

1. Accredited Members/MSMEs
 2. Community partners
3. Private Individuals in need of services offered by the facility
4. Students for conduct of their course studies and research
5. Other consumers

Food Innovation Center

CALABARZON Food Solutions Hub

(C-FOSH) Project
Projected Income Statement