Republic of the Philippines

CAVITE STATE UNIVERSITY

(CvSU)
Don Severino de las Alas Campus
Indang, Cavite, Philippines

A FEASIBILITY STUDY ON THE ESTABLISHMENT OF BLACK SOLDIER

FLY (Hermetia illucens) FARM IN INDANG, CAVITE.

A Feasibility Study
Submitted to Ms. Micah D. Roque
College of Agriculture, Food, Environment, and Natural Resources
Cavite State University
In Partial fulfillment
Of the requirements for ETRP 55

By
IJAY A. BARTOLOME
JERIC R. CHAVEZ
KYLE MACARIO
JOHN PAUL R. PONDOC

JANUARY 2022
 CHAPTER I
INTRODUCTION

Food waste is one of the common problems here in the Philippines, As many
people are experiencing hunger and do not have access to rice, we are wasting
900,000 metric tons of rice per year. According to the World Wildlife Fund–
Philippines, an estimated 2,175 tons of food scraps are thrown out in garbage in Metro
Manila alone. That is why a need for BSF farms arise.

Black soldier flies (Hermetia illucens) farming is presently the most

widespread form of insect farming in the world. The Black Soldier Fly is ideally
suited for food production due to its rapid production cycle and high concentration of
protein. The high percentage of protein in the larvae makes them an ideal source of
food for a wide variety of animals. (InsectEngineers, retieved 2021) According to
(Shumo M, Osuga I et.al, 2019)The dry weight of Black Soldier Fly larvae (BSFL)
contain up to 50% crude protein(CP), up to 35% lipids and have an amino acid profile
that is similar to that of fish meal. They are recognized and utilized as alternative
sources of protein for feed of poultry, pigs, and several species of fish and shrimp.

1.1 BACKGROUND OF THE STUDY

We make this product proposal to help in solving our town food waste
problem and also to we want to feature a new feed alternative that has more protein
and is sustainable. We would like to introduce a feed that is not treated with
chemicals, A Feed that is natural but also healthy. It not just benefit the animal but
also helps the Filipino farming industry that maybe they will be encouraged to try
BSF Farming once it was built.

1.2 STATEMENT OF THE PROBLEM

Growing food waste in the Philippines is a major problem that may lead to
serious problems like hunger and Food Insecurity, While the poultry Supply is
abundant, It is also known that These Poultry animals are grown and fed by giving
them commercially available Feeds, Which contains nutrients but also has been
manufactured, removing many Potential nutrients and the making it as a synthetic.
Black Soldier Flies aims to Solve both of both Problems is the introduction of a
solution that is Eco-Friendly and Nutritious to Feed Poultry Animals giving them
more nutrients and by lessening the chemical they intake as well as reducing the
waste problem in the town where researchers reside.

1.3 OBJECTIVES OF THE STUDY

This Feasibility study is intended to evaluate the feasibility of Building a
Black soldier fly Farm and selling the larvae as feed for poultry animals.
1. What is the financial viability of BSFL feeds production through waste
transformation?
2. Is BSFL feeds a better option than the conventional feed for poultry animals?
3. What are Poultry farmers’ perceptions towards the use of BSFL feeds for animals?
4. What is the amount and the factors that influence the amount farmers are willing to
pay for BSFL feeds?

1.4 SIGNIFICANCE OF THE STUDY

The study gives the consumer a product that is affordable but more nutritious
to Poultry animals compared to other feeds that sold at an expensive price.

This study will benefit the following

To the customer, We believe that this study will benefit them as this is made for
them and also they will be benefited because of the low price and by the nutrients they
will get.

To the researchers- because of doing this study, the researchers will gain more
knowledge and also skills that they can be used in the future.

To the students, They will know what they can contribute about food waste and learn
about the importance of Black Soldier flies
To the Farmers- The proposed study will enlighten our farmers about BSF and also
engaged on BSF Farming

1.5. SCOPE AND LIMITATION

This study of the “black soldier fly farm” Will be conducted in Indang Cavite
and will be based on the marketing, factors and financial aspects of the business. The
respondents will be the small scale farmers in the Indang, and the Product will be
available through direct selling and can be sold also to poultry supplies or can be
delivered door to door.

METHODOLOGY

Methods of Data Collection

Primary data

The researchers collected data from different people through the use of an online
survey form. The main focus of this is poultry farmers

Black soldier fly breeders were also interviewed to gain knowledge about breeding
and keeping the Black Soldier Flies, Breeders in Imus, Davao, and Nueva Ecija were
interviewed via email and via social media sites. This interview involves teaching and
giving tips once we started our BSF farm, they also help the researcher with the layout
of the Insectarium where the Black Soldier Flies will be kept and cared of Drying and
Processing of BSF Larvae were also been asked and had been taught on the
researchers.

Secondary Data 

Secondary data were obtained in Articles, Journals, Books, and newspapers

which are obtained through Online outlets and E libraries.

Methods of Data Analysis

 The information received was examined using descriptive design applied using
survey questionnaires and key informant review. The survey was conducted in the
Indang area only specifically on the Poultry farmers who tried and used BSF Feeds.
The respondents who were asked to identify different changes in their Poultry animals
were directly chosen as the respondent were only in small number. 

The respondents were guided in answering the questionnaires and we also survey
BSF Farm owners in other locality and it serves as the key information in the study on
how we will improve our marketing strategies and improve more of our product
offerings to other customers as well

. Through this research, we will know if black soldier fly (BSF) are worth it to
farmers, especially for poultry farmers. It is hard to make a survey online because
most of our farmers don’t use computers, tablets, or smartphones. Therefore, we just
gave our survey form to those who have access to the internet and gadgets

We make survey forms online because of the pandemic, we can’t go outside to

make a face-to-face survey. Before the pandemic comes it's so easy to make surveys
and you can save your time for it but now it is hard to do surveys.

For the marketing aspect, The amount of BSF feeds consumption in the different
target farmer where gathered, observe and analyze using the various formulation of
strategy in this survey.

For the Technical aspect, assessment of available larvae, availability of organic or

food waste, and the condition of the Insectarium were asked and studied, and verified
by a BSF breeder to ensure that best practices were applied in the study. Labor and
materials were also considered in formulating the strategies.

For management, Insectarium and the knowledge of the breeders were assessed to
determine the Farm capability to met certain demand in the market.

We make survey forms online because of the pandemic, we can’t go outside to

make a face-to-face survey. Before the pandemic comes it's so easy to make surveys
and you can save your time for it but now it is hard to do surveys.

Review of Related Literature

Philippines Waste Problem

According to World wildlife Fund- Philippines, Stated by Nograles(2021), an

estimated 2,175 tons of food scraps in Metro Manila alone are thrown in the garbage
every day. Because of that BSF-based technology can play a significant role in
uplifting the economic condition of lower- and middle-income tropical countries
utilizing their favorable climatic conditions. As the initial capital investments are low,
this technology provides an excellent opportunity to improve livelihood and initiate a
circular economy for small-scale insect farmers.It will also help to combat the
problem in the food waste.

According to a Mongabay article (Eawag). We can produce value from food

waste while also helping to protect the environment and address the problem of
biodegradable kitchen trash by utilizing the black soldier fly.The larvae of the black
soldier fly proved to be an excellent choice for the project. They have a high growth
rate and a voracious appetite for kitchen trash. The nutrient-rich compost produced by
the larvae can be utilized to substitute chemical fertilizers in farmlands. Black soldier
flies generate compost that may revitalize soil for organic farming."

Black Soldier Flies in the Philippines

FiveDOL Upcycling Corporation, a Davao City-based eco-agricultural firm, is

now piloting a project to employ black soldier flies to produce animal feed and farm
trash. The Swiss Federal Institute of Aquatic Science and Technology helped develop
the techniques used by FiveDOL.

Black Soldier Fly Market

According to the Globe Newswire(2020),During the projection period of 2021 to

2030, the Black Soldier Fly (BSF) Market is anticipated to reach $3.4 billion, with a
CAGR of 34.7 percent. The expanding worldwide demand for animal products, the
developing aquaculture sector, increasing demand from the animal feed industry for
alternative proteins, and increasing government approvals of insect meal in livestock
feed are all contributing to the market's growth.

As stated in the by Belghit,Liland et,.al(2019) Their study showed that total

substitution of fish meal with black soldier fly larvae meal in salmon fish diets is
achievable without compromising growth performance, feed utilization, nutritional
digestibility, liver characteristics, or fillet sensory quality, which is one of the primary
factors driving market demand for BSF meal.

According to Meticulous Researchnewest ®'s report, the worldwide black soldier

fly market is anticipated to expand at a 34.7 percent compound annual growth rate
(CAGR) from 2020 to 2030, reaching $3.4 billion. By 2030, this market is anticipated
to reach 34,34,270.5 tons in terms of volume.
Black Soldier Fly Production and Uses

Here's how it works, according to the Rockefeller Foundation (2020): BSF

eggs are placed in tent-like structures containing organic waste, where they incubate
for three days before hatching. Mwangi was utilizing potato trash before the epidemic,
but has recently shifted to overripe avocados since they are more commonly
accessible. The larvae start eating the trash right away.

They grow for around 14 days before being collected for feed, with the exception of
10 to 20%. The colony is maintained by the surviving BSF. They go through the
pupae stage for two weeks before becoming flies.

Insect-based technologies will have a tremendous influence on chicken, fish, and

pig production if they are scaled up. This provides higher-quality meat and eggs, as
well as a speedier time to market. Chickens that typically take 24 weeks to reach
market-ready status are now available at 16 weeks. Her pigs are also ready for market
in six to six and a half months, saving her one to two months. The benefit of BSF
larvae is that they are just for animal consumption. Fishmeal and soybeans are used in
traditional feed, and the animals are in a way competing with people for this
sustenance.

According to Kim, Ryu, et,.al(2021) Black soldier flies is used in treating organic
waste and used as a feed alternative as a End Product. A similar study was conducted
by Bessa, Pietrese, et., al and it seeks Black Soldier flies as for human consumption.
And it shows that in terms of Crude protein it can par with Beef with 50.8 to 69.4
while BSF HAS 30.0 To 52.9. And the said study will undergo on much validation
since BSF is grown Waste but has an antimicrobial in its System.

Black Soldier Fly Price

According to Eawag(2020), Black soldier fly feeds have a flexible price ranging
from 3.5-50 dollars per kg and depending on the availability. There is also no also
obvious obstacle that could hinder the introduction of BSF products in this segment.
In contrast, the strictly regulated farmed animal feed market is not considered as a
viable option for the introduction of BSF products. The market demand for farmed
animal feed is almost 60,000 tons per month indicating that most likely the requested
demands from poultry or aquaculture industry stakeholders could not be met by BSF
waste treatment facilities.
 CHAPTER II
MARKET ASPECT

DEMAND FORECAST

Black Soldier Flies of KJI Farms collected a total of 8 Commercial size Poultry
farmers In Indang. And 52 background Poultry farmers in Calumpang Lejos Indang Cavite, In
Which Black soldier Flies Feeds of KJI Farms may supply its Product. KJI farms conducted a
Survey in which we ask Different sets of Questions Including The farmer's demographic
profile, The animal which they raised, the Number of Heads(Animals), The frequency they
used feeds, And their Knowledge and Willingness to buy Black Soldier flies Feeds.

The Survey Respondents are all Background Poultry Farmers. They commonly used 5 To 8
Kilos per week, It depending on the Number of Poultry animals they catered. Many farmers
do not know about the black soldiers fly but after we Tell them about the nutrients compared
to Corn.36 Out of 52 Background farmers already are interested in the product and the rest
will wait for the result before they buy to KJI Farm.

Feed Consumption 

No. of Farmers in Baranggay x Average consumption per day, Per Month, Per Year.

52 Farmers x0.76 x 365=10,628 Kilos

52 Farmers in Baranggay Calumpang Lejos will be Supplied for 2 Months until we supply to
nearby Feed shops when we met the surplus in the product. KJI Farm will accept surplus as it
will double the population of the Black Soldiers Fly and create more room for Future Product
Expansion Until we met the demand for the whole Indang.

SUPPLY ANALYSIS
 Large commercial companies dominate the supply of feeds in Indang, Like
Thunderbird, CAFEMACO,B-meg and SARIMANOK. This companies are producing feeds
with nutrients but not natural Compare to Black Soldier flies of KJI FARM.

In 2010 there are a total of 1,872 Poultry farmers in Indang. In 2021 we expected a 50%
increase of total Farmers in Indang Giving a total of 2,808 Farmers. And the business will
target a mere of 50% of the current users of Synthetic Feeds.
TABLE 1:Projected Sales ( Volume and Value)
Year 1 Year 2 Year 2
10,628.8 389,469.6 623,040.4
Planned sales volume
35 35 35
x Selling price per
unit
Total Sales ₱372,008 ₱13,631,436 ₱ 21,806,414
In year 1 the Planned sales volume was 10,628.8 kilograms it is for the 52 first Buyers that we
interviewed. The researchers did not put the remaining 10 months in Year 1 as we have said
that it is the start of the business and KJI Farms are starting to expand. In Year 2 The
projected sales once the Supply will take place to the 50% of the Farmers in Indang. The
projected sales are ₱13,631,436 and here we will start to Mechanize the Farm. For the Last
year, KJI Farms expected to supply 623,040.4 Kilograms of Black Soldier Flies for the 85%
Of Indang Farmers. This is the year KJI Farms to expected to supply to other parts of Cavite.

TARGET MARKET

KJI Farm’s target market is poultry farms that do not use Black soldier fly(BSF) as a
feed. It is because BSF can reduce high costs of feed that prevent the Poultry sector from
thriving and meeting the rising demand. BSF have been identified as potential alternatives to
the conventionally used protein sources in livestock feed due to their rich nutrient content and
the fact that they can be reared on organic side streams.
COMPETITIVE
Direct competitors Location PRICE RANGE
Black Soldier Fly_Imus Imus, Cavite 35-40 per kilo
Cavite

INDIRECT LOCATION PRICE RANGE

COMPETITORS
Cav City Feeds and Poultry 92B, P. Burgos Avenue, 75-42 per kilo
Supply Cavite City, 4100
J3EG Pet Shop, Feeds and J. Miranda St, Caridad, 75-42 per kilo
Poultry Supply Cavite City, Cavite
Coky Poultry Supply BLK 46 Lot 14 Victoria 75-42 per kilo
Reyes, Dasmarinas, Cavite
Jennil Poultry Supply Terona St., Putol, Kawit, 75-42 per kilo
4104 Cavite
Fremel Poultry Feeds Supply 235 Emilio Aguinaldo Hwy, 75-42 per kilo
Bacoor, Cavite
Poultry Supply 134 Ligas I, Bacoor, Cavite 78-45 per kilo
Rena Feed and Poultry Supply 279-A, Pedro Reyes Street, 80-46 per kilo
Magdiwang, Noveleta, 4105
Cyprinus Trading (Poultry 17 M Gawaran Ave, Molino 80-45 per kilo
Feeds) III, Bacoor, Cavite
Jewel Poultry Supply Blk 26 Lot 2 Congressional 78-45 per kilo
Rd., St
Giboy 24 Poultry & Feeds 912 A. Soriano Highway, 76-44 per kilo
Supply Sahud-Ulan, Tanza, 4108
Cavite
Vince Feeds Supply Anabu Rd, Dasmariñas, 79-44 per kilo
Cavite
Oragon Agrivet Supplies 4103, Lot 4R Diamond 77-45 per kilo
Village, 4330 Patio Tirona,
Imus, 4103 Cavite
GPA TRIO Poultry Supply 9XPR+8GM, Molino III, 78-44 per kilo
Bacoor, Cavite
J Pel Poultry Supplies 5VWF+JVC, Indang, Cavite 75-41per kilo
F & S Feeds And Poultry Crisanto M. De Los Reyes 76-40 per kilo
Supply Ave, Amadeo, Cavite
Pedong Poultry Supply Naic - Indang Rd, Indang, 75-42 per kilo
Cavite
 Since our product has a lower price compare to other feeds.Black Soldier Fly as feeds is
a great competitor against the said business not only it can give the reared animal nutrients it
needed it is much cheaper and more environmental friendly. The Following stores mentioned
above are competitors are that selling feeds, and also sells BSF feeds.
The advantage of the Black Soldier fly (BSF) it's cheaper than the regular feeds that we
buy. Feeds costs make up more than 70% of the production costs highlighting the important
role economic feeds and their availability could play in successful poultry farming.
The kinds of livestock feeds you'll see in the market currently are mostly made of soybean
and/or GMO protein that are not the best option for livestock animals if you want them to be
organic and/or pesticide free. BSF are precious reservoirs of proteins, fatty acids, micro-
nutrients and contain high amounts of energy16,17,18. The latter show a good profile of
amino acids in general, and of the most-limiting essential ones like lysine, threonine and
methionine.
The weakness of our product is that BSF are not really popular to local farmer Because
First, they do not have really knowledge about BSF Feeds, Second they know about BSF But
still uses Other Feeds as they are tried and testes and Lastly. There are no Supplier of BSF in
their Area
The opportunity we see is we are the one who is first in Indang selling Black soldier fly,
Next is we can promote more farmers to go organic as we featured a feeds that are chemical
free and Lastly, The greatest opportunity that we see is that we can Provide a Quality feeds, In
a much cheaper price and Provide a healthier living for everyone.

MARKET CHANNELS AND OUTLETS

Black soldier Flies or BSF feeds are the Main Product of KJI Farm, It is naturally
grown in our Greenhouses feeding on decomposed banana trunks and other organic
material.It is packed with Protein, Fibers and carbohydrates that will really help poultry
animals to achieve more yield and nutrient they needed.
Black soldier Flies are priced by kilo,a price of Black soldier flies worth only 35 pesos
per kilograms.
The Physical store where KJI Farm will sell the BSF Feeds will be located in Calumpang
Lejos Indang, Cavite, where the farm is located.
 Kji farm and Store Locatiob

The physical store is Indicated with gray dots in the upper top of the map.

Nowadays, online stores and online shopping has been one of the booming trend or industry.
Many brick and mortar stores have switched to the online market space because of the on
going threat of the pandemic which limited foot traffic to these physical stores. Aside from
that, these wave of online markets are revolutionizing how consumers purchase and
businesses operate. These platforms such as Amazon, Lazada, and Shoppe, allows the
consumers to get a product that they want without ever having to step out of there houses. In
these, We will also provide a same approach where BSF Feeds will be available through
digital stores.Wherein we will guarantee the efficiency of the delivery as well as giving the
consumers a quality product.
These convenience and efficiency had the world addicted to scrolling through on a wide
array of products from all over the world, ready to be delivered in your front door within just
a few days, in just a touch of a button. That and the combination of social media advertising,
allowed these businesses to keep the consumers locked in, purchasing everything and
anything, either necessary or not.
For a new product like the BSF, the online market is the perfect media to conduct sales,
marketing, and transactions. Using social media platforms like Facebook and Instagram has
been the major channel for new products to get attention from the consumers. These platforms
will be great to market and promote such an innovative product like the BSF. Since these
platforms are versatile, we can also perform our sales and distributions there. We will also be
creating our own online stores through Shoppe and Lazada, arguably the two most popular
market channels now in the Philippines right now. Businesses can only sell a specific type of
product depending from malls, markets, and trading centers they're located. However in the
online space, businesses have almost 100% reach to their customers regardless of where they
are located in the world, and what they're selling. A niche and innovative product like our
BSF will suit best in the online market. Since most of the time people are glued their PCs,
tablets, and mobile device, this is the space to find customers, have exposure of our product,
and sell to trigger happy online shoppers.
 CHAPTER III
TECHNICAL ASPECT
The Technical aspect is the discussion of the processes,operation flow,and the
materials used.The technical aspect is one of the key aspects of this study, as this element
corresponds to the technical details and basic structure of the proposed study. This includes
equipment lists, materials, working exploded views, and sources of materials used in the
proposed project. Utilities, equipment, layout design, and location are included in this chapter.

PRODUCTION PROCESS

The first step is the collection of Egg which researchers bought first from a direct supplier,
next is incubating it within a container with enclose space. after 4 days researchers will get
instars or larvae, then fed with organic matter like banana trunks pizza dough coffee grounds.
Then when the larvae are nearly close to becoming prepupae, Researchers harvested it and
dried it, and then packed it to be readily available to the market.. lastly the other pupae where
left to continue its life cycle and to produce more offspring.
AREA/FACILITY SIZE AND PRODUCTION SCHEDULE
The total project area is 100 sqm while the main insectarium is 80 sq meters. The
estimate product to be made is 10,628.8kg kilos per year. It will be delivered a total of 5.32
kilograms of BSF Feeds per person every week. Yield is expected once the second quarter of
the year will reach as the BSF Population doubled.For the 2 nd year of the business, The
researchers expected to harvest 389,469.6 kilos, And for the 3 rd year the Researchers expected
to harvest a total of 620,040.4 Kilograms of bsf in its 12 months production.

In the first year, The production season will only last for 11 months since the
First month will be allocated to farm building, and Preparation of cages. For the 2nd
month it is allocated for starting of production,then for 3 rd month is the expected
harvest and the repair of possible damages in cages.The mature bsf will be put in
other cages while the damage cages will be repaired and ready to be used.Every 2
months is the production and harvesting time of the BSF.

TOOLS AND MACHINARIES

Tools
The tools will also depend on the living space, for the construction of the box you will need:
 An electric or hand saw
 A hole saw
 Drill/screw or screwdriver
 Stapler
 Sander

 Brushes and roller

FARM LOCATION (Farm Location/ Plant Location)

The proposed Black Soldier Flies Farm will be located at Brgy. Calumpang Lejos,
Indang, Cavite. The site has an area of 100 Sq m. The location of the site is 106 meters far
from the national road. The proposed location will cater nearby poultry farmers therefore the
location is feasible.

Figure 1.d farm site in Calumpag lejos.

The farm location is 12 minutes away from Cavite State University where the researchers
studying.
FARM LAYOUT
Plant Layout
The plant layout is simple the researchers emphasize the cage as it is the heart of the
operation. The researchers create a smaller room where the organic matter will be place and
the drying are. And the small gap between the rooms will be the working area and resting
area.

Figure E. 1 Perspective view

Figure E.2 Floor plan

STRUCTURE
A. Construction of Farm Building

MATERIALS QUANTITY COST TOTAL PRICE

Cement 10 sacks ₱275.00 ₱2,750
Sand 1 truck ₱ 1100.00 ₱1,100.00
Gravel 4 trucks ₱800.00 ₱3,200
4x4 Lumber 6 pieces ₱320.00 ₱1,920.00
2x3lumber 5pieces ₱150.00 ₱750.00
2x2 lumber 20pieces ₱130.00 ₱2,600.00
200 Microns shading 9 meters ₱634 per 3 meters ₱1,902.00
plastic
#4 Fish net 30 meters ₱,3925.00 ₱3,925.00
#3 NAIL 1kg ₱130 ₱130.00
# 2 NAIL 1kg ₱138 ₱138.00
# 1 Nail 1kg ₱182 ₱182.00
TOTAL ₱18,597.00

B. Labor
Labor= 10 persons x 450 Pesos x 25 DAYS= ₱112,500

Figure f.1

RAW MATERIALS
 The materials listed here are all of the materials needed in Creating a Black Soldier
Flies Farm,in Calumpang Lejos Indang Cavite. It will be classified depending on the stage of
production.

A. BLACK SOLDIER FLY

Black Soldier Fly 20 grams ₱500.00 ₱1000.00

Larvae
Cardboard 10kilos ₱20 ₱200.00
TOTAL ₱1000.00

Other raw materials is steel lumber,gasoline, and plastic, The steel will be used in the BSF
love cage and Primary cage, The lumber is used for the Insectarium or the Main building
where the BSF Will be reared, Gasoline will be used for construction material used for
example, Cement mixer, and for Farm tools like chainsaw and Grass cutter for land clearing.
Lastly the plastic represents nets, pail and plastic container that will be used for BSF rearing

LABOR REQUIREMENTS
The required labor for Construction is 10 persons, to ensure a speedy construction of
Insectarium and the Cages.Once done, The farm can be run with only 2 people. One handles
Breeding Operations, and the other Bio waste Treatment. For the following years, The BSF
farm would require at least 5 workers. 1 for each phase in the production: Breeding,
Nursery/Hatchery, Pupa Handling, Bio waste Treatment, Larvae-to-feeds Processing. And 3
more employees for the administrative processes, marketing, and sales,For a total of 8
workers.

UTILITIES

The main utilities we will needed is Electricity, Internet Connection and Water,
The electricity is for the construction and for the Lighting of the area, since BSF loves dark
area, We will just used electricity in our office and Few lightbulbs in the area. For the internet
connection, it will be used for promotion and for order receiving,since it has free landline that
the researchers can used. For the Water,It will primarily used in construction,after
construction it will be used in basic sanitary needed and for cleaning if their is any
contaminant.

EXPENSES FOR UTILITIES

UTILITIES PAYMENT PER MONTH
ELECTRICITY ₱ 1500.00
 INTERNET CONNECTION ₱ 1499.00
WATER ₱ 1000.00

TOTAL ₱3999.00

From the table below it is seen that the monthly expenses for utilities of BSF FARM will be
₱ 3999.00 for the first month and it the electricity and water will be lessen after the first
month.

WASTE DISPOSAL
Since BSF Farm of KJI FARMS will process organic waste,The waste that the farm
will produce is human waste and packaging waste, The waste from kitchen and bathroom that
is located outside the insectarium will go directly to a septic tank buried about 3.1 meters to
avoid underground water contamination.The garbage will be collected and segregated into
three, 1.Biodegradable, 2. Non Biodegradable, and 3. Hazardous. It will be collected by
different trucks provided by the Local Government in every Baranggay. The packaging waste
will be biodegradable to ensure the Safety of the Environment.

ORGANIZATIONAL CHART
 John Paul R. Pondoc
PRESIDENT

Jeric R. Chavez Ijay A. Bartolome Kyle Macario

VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT
Production FINANCE MARKETING

PRODUCTION CUSTOMER SERVICES

MANAGER ACCOUNTS TREASURY

ACCOUNT
BSF KEEPERS DEPARTMENT SALES

CUSTODIAN/
HELPER TAX DEPARTMENT
 CHAPTER IV
FINANCIAL ASPECT
Sales/ Revenue
PROJECT DEMAND SALES FOR 2022- 2024
DEMAND 2022 2023 2024
Black Soldier Feeds 10,628.8kg 389,469.6 kg 623,040.4kg
Total 10,628.8kg 389,469.6 kg 623,040.4kg

SALES 2022 2023 2024

Black Soldier Feeds ₱372,008.00 ₱13,631,436.00 ₱ 21,806,414.00
Total ₱372,008.00 ₱13,631,436.00 ₱ 21,806,414.00

Total Project Cost

I. Direct Materials

PURCHASED OF RAW MATERIALS

ITEM QUANTITY Per Unit Price Amount
Production
Monthly Yearly
Black Soldier Fly 20 grams 240 grams ₱50.00 ₱12,000
Larvae
Cardboard 10kilos 120 kilos ₱20.00 ₱2,400

TOTAL ₱70.00 ₱14,400.00

II. Direct Labor

SALARIES AND WAGES
POSITION COST PER MONTH COST PER ANNUAL
BSF KEEPER ₱ 7,500.00 ₱90,000.00
Custodian/Helper ₱2,800.00 ₱33,600.00

TOTAL ₱10,300.00 ₱123,600.00

III. Direct Overhead

PACKAGING
ITEM QUANTITY PRICE MONTHLY ANNUAL
COST
Paper Bag 240 ₱3.40 ₱340.00 ₱4,080.00

TOTAL ₱4,080.00

IV. Statement of Cost of Goods Sold

Statement of Cost of Goods Sold
 2022 2023 2024
Beg. Inventory - - -
Add:
Purchase of Raw ₱14,400.00 ₱14,400.00 ₱14,400.00
Materials
Direct Labor ₱123,600.00 ₱1,392,000 ₱1,392,000
Overhead:
Packaging ₱4,080.00 ₱264,836.2 ₱423,667.472
Cost of Goods Sold ₱142,080.00 ₱280,628.2 ₱1,830,067.47

Operating Cost
SALARIES AND WAGES
POSITION COST PER MONTH COST PER ANNUAL
BSF KEEPER ₱ 7,500.00 ₱90,000.00
Custodian/Helper ₱2,800.00 ₱33,600

TOTAL ₱10,300.00 ₱123,600.00

Year 2 - Onwards
SALARIES AND WAGES
POSITION COST PER MONTH COST PER ANNUAL
BSF KEEPER 1 ₱10,000.00 ₱120,000.00
BSF KEEPER 2 ₱10,000.00 ₱120,000.00
BSF KEEPER 3 ₱10,000.00 ₱120,000.00
BSF KEEPER 4 ₱10,000.00 ₱120,000.00
BSF KEEPER 5 ₱10,000.00 ₱120,000.00
Custodian/Helper ₱10,000.00 ₱120,000.00
Accounting Officer ₱12,000.00 ₱144,000.00
Marketing specialist ₱12,000.00 ₱144,000.00
Administrative Assistant ₱12,000.00 ₱144,000.00
Sales Representative ₱10,000.00 ₱120,000.00
Total ₱106,000.00 ₱1,392,000

OFFICE SUPPLIES
ITEM QUANTITY PRICE ANNUAL COST
Record Book 2 ₱123.00 ₱246.00
Official Receipt 10 ₱225.60 ₱2,256.00
Ball Pen 12 ₱7.00 ₱84.00
Bond Paper 2 ₱175.00 ₱350.00
Puncher 1 ₱175.00 ₱174.00
Stapler 2 ₱45.00 ₱90.00
Staple Wire 10 ₱15.00 ₱150.00
Fastener 1 ₱30.00 ₱30.00
Total ₱3,380.00
 Transportation Cost
Item Cost Per Month Annual
Delivery Expense ₱5,000.00 ₱48,000.00
Total ₱48,000.00

Promotional Expenses
Cost No. Of Months Annual Cost
Flyers ₱250.00 10 ₱2500.00
Total ₱2500.00
Office furniture and fixtures
Item Quantit Price Amount Salvage Difference Lifespa Annual Monthly
y Value n Depreciation Depreciat
Office 3 ₱ 874.00 ₱2,622.00 ₱500.00 ₱2,122.00 3 ₱ 400.00 ₱ 33.33
Chair
Table 3 ₱ 2,200.00 ₱6,600.00 ₱900.00 ₱5,700.00 3 ₱ 1,900.00 ₱ 158.33
Ceiling 1 ₱500.00 ₱500.00 ₱150.00 ₱350.00 3 ₱ 116.37 ₱ 9.70
Fan
File 3 ₱3,000.00 ₱9,000.00 ₱600.00 ₱8,400.00 5 ₱ 1,680 ₱140.00
Cabine
t
₱18,722.0 ₱3,272.0 ₱16,5720.0 ₱ 4,096.37 ₱ 341.36
0 0 0

Equipment
Item Quantity Price Amount
Computer 1 ₱20,000.00 20,000.00
Printer 1 ₱5,000.00 ₱5,000.00
Total ₱25,000.00

Depreciation Expenses
Item Cost Estimated Depreciation
useful Life
2022 2023 2024
Office ₱18,722.00 Approx.3 ₱ 4,096.37 ₱8,192.74 ₱12,289.11
furniture years
and Fixture
Office ₱25,000.00 Approx.5 ₱5,333.33 ₱10,666.67 ₱15,999.99
Equipment years
Total ₱ 9,429.7 ₱18,859.41 ₱28,289.1
 Utility Expenses
ITEM COST MONTHLY ANNUAL
Electricity ₱ 1,500.00 ₱ 1,500.00 ₱ 18,000.00
Internet Connection ₱ 1,499.00 ₱ 1,499.00 ₱ 17,988.00
Water ₱ 500.00 ₱ 500.00 ₱ 6,000.00
TOTAL ₱ 41,998.00

Initial capital requirement

Farm building ₱18,597.00
Raw materials ₱14,400.00
Labor ₱112,500.00
Office supplies ₱3,380.00
Transportation ₱48,000.00
Flyers ₱2500.00
Office furniture and fixtures ₱18,722.00
Office equipment ₱25,000.00
Packaging ₱4,080.00
Utilities ₱ 41,998.00
TOTAL: ₱289,177.00

Sources of financing
Dept (Bank loan) 30% - ₱86,753.1
Equity contribution 70% - ₱202,423.9
Total: ₱289,177.00

Source of Financing Description

DEBT The 30% of the fund will be obtained from
the agricultural loan with a 2% Interest rate
per annum from Land Bank of the
Philippines.(Via Agricultural
Competitiveness Enhancement Fund)

EQUITY The 70% of the fund will be funded by the

Researcher. It is divided into four, since we
have 4 owners. (₱50,605.75 each)

FINANCIAL STATEMENT

PROFITABILITY 2022 2023 2024

 ANALYSIS
Sales ₱372,008.00 ₱13,631,436.00 ₱ 21,806,414.00
Cost of sale ₱265,280.00 ₱942,836.2 ₱1,101,667.47
Gross profit
Income from ₱ 182,577.3 ₱ 12,164,178 ₱ 20,310,126.9
operation
Net income ₱ 182,577.3 ₱ 12,164,178 ₱ 12,164,178

Debt ratios
Total assets ₱176,677.00 ₱176,677.00
Total liabilities ₱86,753.1 ₱86,753.1
Total owners equity

Investment return
Net income ₱ 182,577.3 ₱ 12,164,178 ₱ 20,310,126.9
Total assets ₱176,677.00

Return of 96% 829% 1.367%

investment

Financial Analysis

Financial Amount
Indicators
Year 1 Year 2 Year 3 Year 4 Year 5
Total Yield 10,628.8kg 389,469.6 kg 623,040.4kg 623,040.4kg 1,012,510 kg
BSF
Feeds(Kg)
Gross ₱372,008.00 ₱13,631,436.00 ₱21,806,414.00 ₱21,806,414.00 ₱35,437,850
Income/Sales

Break-Even ₱ 17.82 ₱ 3.77 ₱ 2.39 ₱ 2.39 ₱ 1.45

Price
Break-Even 5412.22 41,921.64 42,465.36 42,465.36 41,955
Yield
Total Cost of ₱ 189,427.7 ₱ 1,467,257.41 ₱ 1,486,287.1 ₱ 1,486,287.1 ₱ 1,468,427.7
Production
Net Income ₱ 182,577.3 ₱ 12,164,178 ₱ 20,310,126.9 ₱ 20,310,126.9 ₱ 33,969,422.3
Net ₱ 15,214. 76 ₱ 1,013,681.55 ₱ 1,693,343.91 ₱ 1,693,343.91 ₱2,830,785.19
Income/Mont
h
ROI 96% 829% 1,367% 1,367% 2,313%
Payback Period= Initial Investment/ Cash Flow Per Year
289,177.00/182,577.3= 1.58 years
The payback period for BSF Farm will be 1.58 years meaning it has shorter time to payback
and the farm earning potential is greater.
 CONCLUSION AND RECOMMENDATION

Recommendation
After the initial study that we conducted considering the Marketability, financial, and
Technical aspect of this business. We recommend that Black soldier fly farm in Calumpang
Cerca should be established

Conclusion
Based on the research and study that we conducted, we therefore concluded that our
business is feasible and viable in the market.