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CHAPTER 1 INTRODUCTION Rationale Culinary herbs and spices are at a rare and heady juncture in the food industry;

theyre right smack in the middle of several hot consumer trends. Herbs and spices can answer to todays hottest demandsbold flavor, ethnic flair, functional attributes, fresh and local, natural and healthy, and an avenue to increase income all in one package. And the food industry is blending them into a number of food categories, from fine dining to convenience-food products. Culinary herbs and spices are also enjoying a renaissance for their health benefits. For centuries, cultures across the globe have believed in the medicinal properties of such plants, and now modern science is proving them righta spicier life is, indeed, a healthier one. Last 2008, BAR (Bureau of Agricultural Research) conduct a Seminar Series: Prospect of Culinary Herbs Agribusiness in the Philippines apprising the Filipino about their study on the new trends and opportunities on agribusiness. BAR regularly organized seminars through its Management Information and Systems Division (MISD). The Bureau of Agricultural Research (BAR) as they presented a seminar series on culinary herbs. That activity gives way to the exchange of information and knowledge, trends, challenges, and opportunities such as the

consideration of another growing market with great potential and offers a niche market like potted or boxed fresh culinary herbs and spices, edible mushrooms, aromatics, phytomedicinals for indoor gardening that are presented in the agriculture and business R&D (Research and

Development) sector. BAR welcomed the participants from various DA (Department of Agriculture) agencies, private organizations (Hotels, Schools and Restaurants) and other stakeholders. With the intention to emphasize the importance of indoor gardening culinary herbs, spices, edible mushrooms and it market prospects. Culinary herbs, command high price during off season or when availability is low in conventional markets. Meanwhile, continuous and sustained production is needed for institutional buyers and well demanded for organic and natural food stores. (BAR Assistant Director Teodoro S. Solsoloy, 2008) The Philippine government adopted this program from ITC

(International trade Centre) that supports micro, small and medium enterprises (MSMEs) to produce, offer, and market distinctive potted culinary herbs through the process of indoor gardening. Indoor gardening of Culinary Herbs started in the Philippines on 2008 following the success of the study by the International Trade Centre (ITC), about the technical cooperation agency of the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (WTO) for operational, enterprise-oriented aspects of trade development which supports the development of exports in organic and natural products from

developing countries through technical assistance to trade support institutions, government bodies, the private sector and producer

organization. The program highlighted the key concepts of rediscovery of indigenous indoor gardening for food industry and entrepreneurship. Speaking to current industry structure, the standard of retail culinary herbs for indoor gardening in Dagupan is not very good. This is an overall situation in the Province. There are very few proper culinary herbs shops in the country. Most of the shops can only qualify as covered near depletion arcade, where herbs are being sold in a very ordinary form. Though these are retail outlets, they do not add much value to the product. Most of these retail outlets exist in a group along some important shopping point or market. They do not have an innovative display, facilities and selling ideas. As these are open shops therefore they have no conception of selling a buzzing culinary herbs and spices plants and edible mushrooms for indoor gardening instead they are selling it by bunch or bundles. They do this by keeping the herbs on a tray or basket and spraying them with water every few hours. This is done to keep the herbs fresh, not realizing that this procedure reduces the life of the herbs. All such outlets have a very limited product line with not many variations. Simple bunch of almost wilted culinary herbs is their product, very few and ordinary. According to the study of SMEDA, April 2007, investing on the culinary herbs plants is not just about putting the availability of your

preferred cooking taste or lessening the cost of your food preparing but also giving life to your kitchen as a decorative indoor garden of yours. They have also stated that the proper indoor culinary garden kits shops exist only in 5-star hotels. To a large extent, this is still the case. Only one or two other shops exist outside a 5-star hotel in all major cities and others which exist outside a 5-star hotel shopping area. The hotel shops are very expensive, though they have very good quality product. These other shops are becoming more popular as they are less expensive compared to the shops in 5-star hotels and have almost similar quality and variety. The reason being, city shops are becoming more popular is because they sell high quality culinary herbs and spices, which have diversified product line. These shops have qualified indoor gardening kit arrangement to create quality based culinary herbs and spices products. To achieve the potentiality of the program and in response to these emerging needs due to the culinary herbs industry issues in the Philippines, a business feasibility study will be conduct by adopting the setting by means of putting up a Kiosk of Culinary Herbs, Spices and Edible Mushroom in the municipality of Dagupan City in the province of Pangasinan. It is estimated that one in fifty business ideas are actually commercially viable. Therefore Business feasibility Study is an effective way to safeguard against wastage of further investment or resources (Gofton 1997; Bickerdyke et al. 2000). If a project is seen to be feasible

from the results of the study, the next logical step is to proceed with the full Business Plan. The research and information uncovered in the feasibility study will support the business planning stage and reduce the research time. Hence, the cost of the Business Plan will also be reduced. A thorough viability analysis provides an abundance of information that is also necessary for the Business Plan. For example, a good market analysis is necessary in order to determine the business concepts feasibility. This information provides the basis for the market section of the Business Plan (Bangs 2000; Hoagland and Williamson 2000; Truitt 2002; Thompson 2003b). The business proposal is a one-stop depot for restaurateur, households, HRM and culinary people. The proponents will give name the store Flavors in a Box because of their idea of bringing different types of herbs, spices and edible mushroom from some parts of the Philippines inside a recycled box into the heart of Dagupan City. Available potential market was categorized in to two groups, namely: Direct Potential market and Indirect Potential Market. Direct Potential Market consists of those who are residing within five- kilometer radius and other town where residents treated Dagupan Town as a business center. The Indirect Potential Market constitutes those residing in towns located along the national highways who can possibly shop to neighbor towns.

The proposed kiosk shall be located at Dagupan City, where commercial business, government offices, schools or university,

restaurants, food shop and households are found. Family households, restaurateurs, HRM folks, and culinary people, these individuals are the excellent customers of the kiosk for their culinary/cooking activity requirements and preferences. Dagupan City is an urban and progress leading town of Pangasinan which located at the shore of South China Sea. In Dagupan City, there are five schools and universities offering a HRM course, numerous restaurants and food shops, numerous household and unexpected numbers of culinary enthusiasts. This proposed kiosk shall offer basic variety of culinary herbs and spices indoor plants and edible mushroom inside recycled box/papers. Consequently, this kiosk is much need particularly by the restaurants, food shops, HRM folks and culinary enthusiasts. The objective of this feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment of culinary herbs, spices and edible mushroom as indoor plants. The project feasibility may form the basis of an important investment decision and in order to serve this objective, the document/study will cover various aspects of project concept development, start-up, production, marketing, financing and business management. This study will also provide sectoral information, brief on Government policies and international scenario, which have some bearing on the project itself. In meeting the above tasks

we are going to obtain information from industry sources, schools and households. This report will be base on the information conceivably from industry sources as well as from the discussions with horticulturist and businessmen. Aggregately, this study, therefore, designed to develop and to put up a kiosk of indoor culinary herbs and spices plants and edible mushroom in recycled box/papers using the different assessment on its market viability, technical viability, organization and management

viability, financial viability and last the socio-economic viability.

CONCEPTUAL FRAMEWORK The study utilized the basic concept of the system approach in making assessment of certain programs which represent social systems that contains many interrelated factors that function harmoniously in order to maintain the objective of the system and a conceptual framework that describes the set of broad ideas and principles taken from relevant fields of enquiry and used to structure a subsequent presentation. In applying the system approach to develop and to put up an arcade of indoor culinary herbs and spices plants and edible mushroom in a recycled box/papers in Dagupan City, major elements such as inputs, process, and output are utilized in this study. The study will utilize the research study on the feasibility of putting up an Arcade of Herb and Spices plants and Edible Mushroom for indoor gardening in Dagupan City

as the input. While the assessment of the viability of the market, technical, organization and management, financial and socio-economic factors will be under the process. Lastly, the implementation and execution of the proposed business together its market, technical, organization and management, financial, socio-economic properties will be the output of the system. Input Process Output

1. Research on the feasibility of putting up an Arcade of Culinary Herbs, spices and mushrooms for indoor gardening in Dagupan City.

1. Assessment of market viability of the proposed business. 2. Assessment of technical viability of the proposed business. 3. Assessment of organization and management viability of the proposed business. 4. Assessment of financial viability of the proposed business. 5. Assessment of socio-economic viability of the proposed

1. Implementation and execution of the proposed business and its market, technical, organization and management, financial, and socio-economic properties.

FEEDBACK

Figure 1 Research Paradigm STATEMENT OF THE PROBLEM

The principal aim of this study is to determine the market feasibility, technical feasibility, organizational and management feasibility, financial feasibility and socio-economic feasibility of establishing Flavors in a Box, a culinary herbs, spices and edible mushrooms arcade. Specifically, this seeks to address the following questions:
1. What is the viability of the proposed culinary herbs, spices and

edible mushrooms arcade in Dagupan City along the following aspects:


a. Market Aspects; b. Technical Aspects; c. Organization and Management Aspects; d. Financial Aspects; and e. Socio-economic Aspects? 2. Based on the above-mentioned aspects, how feasible are the

proposed culinary herbs, spices and edible mushrooms depot in Dagupan City?

ASSUMPTIONS The assumptions are based on realistic, workable and considered fact, ideas and time execution given for the next semester. This provides the bases for estimating future capital, expenditures, operation and revenues of the project.

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It is assumed that the initial investment for the project shall be Php. 30, 000.00, that will cover the overall investments and expenses. In economy related, theres no assumption of inflation rate on utilities and equipments. The kiosk will operate within 3 months: 10 hours a day and 30 days a month. The base of the kiosk shall be located within the vicinity of Nepo Mall in Dagupan City. The project will have 25% revenue assumption. Generally, the researchers assume the progressive penetration of the product to the market due to its in demand, neoteric, innovative presentation to the market industry of Dagupan City, to the educational facet of HRM folks, to the preferences of culinary enthusiast, to the requirements on cooking of restaurateurs and to the activities of family households.

SIGNIFICANCE OF THE STUDY This study will be a significant endeavor in promoting

entrepreneurial and nature welfare activities. This study will also be beneficial to the following groups of people and entity: Businessmen/ Investors to this proposed project They shall benefit to this study through leading them to the market, technical, and financial opportunities behind this projects and to the recognition to the nature welfare actions as facet of the socio-economic aspect of the study.

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HRM and Culinary Enthusiast This study will broaden their perception regarding the availability of their preferences of flavors in their dish with in just the pinch of their finger inside their kitchen. Furthermore, they will be encouraged in to green and healthy activity in everyday life. Restaurants This study will give insights of the convenience on availability of fresh herbs, spices and mushroom on their kitchen. Farmers/Horticulturist They shall increase their market share on agribusiness industry particularly on culinary herbs and spice industry once the proposed kiosk will be establish. Industry In general, this study will furnish insights on how concerned the entrepreneurs and horticulturist with regard the issues of the profit growth and nature welfare through the culinary herbs indoor gardening. Moreover, this study will help the industry assess marketing campaigns vis--vis to the globalization. Future researcher This study will serve as their guide, a frame of references to future researchers who may gain interest in establishing a similar business undertaking. Likewise, the study will serve as a guide for the researchers in the conducting related studies in the future.

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SCOPE AND LIMITATIONS The study will cover the aspect of the following: 1. Market Aspect a. Product Description b. Target Market c. Demand Supply Analysis d. Market Share e. Price Study f. Factors Affecting the Market i. Demand ii. Supply g. Marketing Programs and Strategies i. Product and Positioning ii. Price iii. Place iv. Promotion 2. Technical Aspects a. Production Process b. Service Process c. Location

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d. Layout e. Operating Size and Schedule f. Building and Facilities g. Building Improvements h. Machineries and Equipments i. Furniture and Fixtures j. Supplies / Merchandise Inventory k. Utilities l. Manpower Requirements m. Waste Disposal Management 3. Organization and Management Aspect a. Nature and Form of the Business b. Legal Requirements c. Organizational Structure d. Human Resource Management i. Job Analysis and Design ii. Recruitment and Selection iii. Training and Development e. Management Style f. Pre-operating Activities and Time table 4. Financial Aspect a. Total Project Cost b. Major Assumptions

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c. Projected Financial Statements d. Financial Analysis 5. Socio-economic Aspects a. Social Obligation and Responsibility b. Economic Contribution

DEFINITION OF TERMS Establishing a Culinary Herbs, Spices and Edible Mushroom Kiosk - This refers to the proposed project which will undergo on the assessment of the feasibility study in inclusion of the five major facets in assessing the viability of a prospect business, this are the market aspect, technical aspect, organization and management aspect, financial aspect and the socio-economic aspect. Feasibility Study - Refers to the conduct of a research to identify and determine whether the proposed Culinary Herbs, Spices and Edible Mushroom Kiosk are realistic and viable. Market Aspect
-

It includes the component of the feasibility study that covers the Product Description, Target Market, Demand Supply Analysis, Market Share, Price Study, Factors Affecting the Market,

Marketing Programs and Strategies of the proposed Culinary Herbs, Spices and Edible Mushroom Kiosk.

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Technical Aspect
-

This refers to the location and layout of the Culinary Herbs, Spices and Edible Mushroom Kiosk. As well as the physical layout of the equipment in under to facilitate movement.

Organizational and Management Aspect


-

This comprise the set of officers and staff which includes the description of their jobs, duties and responsibilities who will take charge of the affairs and operation of the Culinary Herbs, Spices and Edible Mushroom Kiosk.

Financial Aspect
-

This covers the Culinary Herbs, Spices and Edible Mushroom Kiosks total project cost, assumptions, projected balance sheet, income statement and cash flow statements.

Socio-economic Aspect
-

It refers to the benefits that the proposed Culinary Herbs, Spices and Edible Mushroom Kiosk can contribute to the community, government, employees and investor/s.

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CHAPTER 2 REVIEW OF LITERATURE This chapter presents some of readings in the concepts and research that have bearing on the present study which provided the researcher with baseline ideas on the bartending competency standards in selected hotels in Manila. Foreign Literature According to the research prepared by Dr. Gary Brester, Kole Swanser and Tim Watts which was prepared for Montana Department of Agriculture, U.S. Department of Agriculture Federal-State for the

Marketing Improvement Program, found out that the growth and rising interest in culinary herb products in the United States over the last several years has caught the attention of the agricultural community. Reports of high prices for specialty crops, coupled with a decrease in prices for traditional grain crops, has caused many agricultural producers in Montana and other states to consider whether specialty herb crops offer opportunities for diversification and increased profits. This study, prepared for the Montana Department of Agriculture, explores the economic feasibility of culinary herb and specialty crops for Montana farmers.

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This research explores production, uses, markets, and prices for several specific specialty herb crops. It presents findings from agronomic production trials including test plot yields. Strategic considerations for prospective growers and Montana producers in particular are explored. Available market data is presented; and, market depth, price volatility, and potential trends are analyzed. Risk management considerations are highlighted, and methods of risk management for individual producers are explored. The said research recommended several potential strategies and considerations for prospective Montana growers considering specialty crop opportunities. Notably, it is recommended that the benefits of cooperative arrangements and alliances be explored. Significant

opportunity may exist for some producers in the production and marketing of high-quality, specialty herbs. Taking advantage of such opportunities will require significant expertise and participation of the grower beyond crop production. Progress has been made toward the development of production knowledge and research for western Montana climates. The markets for such products are expected to expand. Furthermore, the production of such products, following organic practices in the pristine environments of Montana, may provide an opportunity for some Montana agricultural producers with a desire to further their own active involvement in product research and marketing of their products. (Market Opportunities and Strategic Directions for Specialty Herbs and

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Essential Oil Crops in Montana by Dr. Gary Brester, Kole Swanser and Tim Watts, 2002). From the International Trade Centre research, the world market for imported spices and culinary herbs is large, valued at just over US$ 2.3 billion. LDCs such as Madagascar, Comoros and the United Republic of Tanzania earn a substantial part of their foreign exchange from spice exports. The main spices exported by LDC countries are vanilla, cloves, chilies, cardamoms, nutmeg and mace. Since 1995, the LDCs have provided over half of the worlds imports of vanilla and over one-fifth of the worlds demand for cloves. Other major LDC exports are black pepper, paprika, coriander, cumin, cinnamon, ginger, turmeric, etc. From 1995 to 2008, annual world imports of spices averaged 500,000 tons, growing at an average 8.5% a year. This strong growth rate is a good indicator of the increase in consumption of spices. The LDCs have tremendous potential to expand their exports to both developed and developing country markets. These are high-value markets that are growing rapidly and LDCs have the natural resources to compete. They are likely to benefit from the rapid growth of the market, could take market share from their developing country competitors, add to the range of spices and herbs they supply, and increase value addition by preliminary processing. Strategies to realize the full potential offered by the export of spices and culinary herbs need to take account of the following five types of opportunity:

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- Diversifying export markets. - Diversifying the product range. Products such as coriander, cumin, bay, oregano and thyme offer sizeable and attractive export opportunities. - Improving market share and positioning. The key requirements are improving the consistency of quality and timeliness of delivery. - Taking advantage of niche opportunities. Although comparatively small at present (a little more than 1% of the total spice demand), the organic segment of the spice market is growing, reinforced by the desire to consume natural, wholesome products that is driving the consumption of spices overall. The trend towards a greater variety of ethnic cuisine offers the prospect of each country developing a niche for spices and admixtures that are used in its own cooking. - Processing and packaging. There is a trend for greater processing and packaging of spices in the developing countries. Spice admixtures are also gaining ground in response to the desire for greater convenience. The critical success of factor: and increase help the supply exploit capacity their and

competitiveness

LDCs

them

enhanced

capabilities in international markets through information, access to inputs, support services, utilities and infrastructure. Under present market conditions, LDC exporters could concentrate on supplying large

processors and packers with whole spices of high quality. They could attempt to supply in bulk high-quality ground spices to large, industrial users, who are more likely to be willing to import directly from source and

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to use more than one supplier. In the longer run, the aim should be to attract investment by processors with the market knowledge and distribution capabilities in the consuming countries. Smaller processors and traders may look for alliances and joint ventures with processors in producing countries.

According to the research for the Rural Industries Research and Development Corporation Asian Markets Research Culinary herbs: A Market Assessment by Grant Vinning, the Australian culinary herb industry has been very traditional. What was grown, where it was grown, what were the standards the herbs were grown to, and what were the outlets where the herbs went were factors largely determined by tradition. Significant changes have occurred in the industry over the past few decades. The biggest changes have been in the outlet side where the changes relate to what is being eaten, where it is being eaten, and the form of how it is being eaten. For the production side of the culinary herb industry this has meant significant changes, especially in the standard and form of the product being presented to the buyers. The market has now six basic end-consumers: the traditional home buyer, restaurants, caterers, manufacturers, processors, and re-packers. Whilst culinary herbs in the form of fresh bunches still go to the first three outlets, product in fresh bulk, frozen and dried forms go to the latter three as well as to caterers.

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This project examines the criteria upon which the buyers base their decisions. These criteria related to price, quality in terms of physical appearance, chemical composition in terms of volatile oils and residues, and microbiological issues in terms of Total Plate Count. There were a number of over-arching conclusions. First, all buyers placed price close to but not necessarily at the top of their hierarchy of requirements when buying herbs. They stated that price is always relative to quality and what the market will bear. Second, there is no such thing as best quality. Instead, quality is something that best meets each buyer/users standards of physical, chemical, microbiological, and organoleptic attributes. Third, bearing the above two points in mind, buyers did not have an automatic preference for imported product. This auger well for the Australian industry. Buyer comments clearly point to a number of areas that Australian culinary herb producers should look at in order to advance their industry. One is the Bulk Index. This is the ration between volume and weight. Given that the re-packer industry is based on packing a variable volume into a fixed package size, Bulk Index is critical to profit. Growers need to be aware of the principles behind the Bulk Index, the general Bulk Index for their herbs, and the preferred Bulk Index employed by their buyers. Another issue is the microbiological standard of Total Plate Count. Because herbs and spices are used as ingredients across a diverse range of foods that are handled and stored in a wide variety of conditions, a

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high Total Plate Count may have a significant impact on either the shelf life of the product or in a worst case scenario, cause food poisoning. Given the increasing trend of food marketers moving towards HACCP systems of food standards, failure to be aware of microbiological factors could revibrate against Australian culinary herb producers. It was pointed out that buyers are aware that domestically grown herbs are not treated to the same degree of rigorous health standards as the imported product. Again, this could change under the imperatives of non-discriminatory practices imposed by the World Trade Organization. In the same broad area of health and safety is the awareness by Australian buyers that although Australia has a clean and green image, heavy metal residues are a cause for concern with Australian grown material, a by-product of our environment coupled with the effects of high super phosphate use for many years. Dealing in non- GMO products is definitely seen as being an advantage. Finally buyers expressed concern regarding market structure. In the main, the Australian culinary herb industry has a poor reputation for being able to supply lines of consistent quality and volume. Many importers have some form of exclusivity with an exporter, precluding competitors from gaining access to the same material at similar pricing. These importers may also deal with a number of exporters, so should there be a crop failure or other supply issue, the importer can get a similar grade from another supplier and still keep customers satisfied. A perceived

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downside to dealing with the Australian producing industry is that they will sell their material to all comers, so it is not worth putting in the time and effort to convince a customer to try local material. There is also a history of local growers by-passing the importer/distributor and selling direct to the importers customer. This may appear to cut out a middleman. However, should the grower not be able to sustain continuity of supply the buyer then has to evaluate imported material again and will probably not be prepared to go through the hassle of changing suppliers again. In these circumstances the buyer tends to go back to the importer for supplies that will be available on a consistent basis. It is for these reasons that the paper concludes with the recommendation for

cooperating action between growers.

Local Literature 2008 BAR Seminar Series on Their Research: Prospect of Culinary Herbs Agribusiness in the Philippines The Bureau of Agricultural Research (BAR) presents a seminar series about their research study on culinary herbs. The seminar is second of the series that year which is regularly organized by BAR through its Management Information and Systems Division (MISD). This activity gives way to the exchange of information and knowledge, trends, challenges, and opportunities in the agribusiness R&D sector.

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BAR

Assistant

Director

Teodoro

S.

Solsoloy

welcomes

the

participants from various DA agencies, private organizations and other stakeholders. In his speech, he emphasized the importance of culinary herbs and it market prospects. Culinary herbs, according to him, command high price during off season or when availability is low in conventional markets. Meanwhile, continuous and sustained production is needed for institutional buyers and well demanded for organic and natural food stores. Today, the demand for culinary herbs and its products is growing with the emergent interest of people in organically grown products, said Dr. Leonora K. Verzola, assistant manager of the Cordillera Integrated Agricultural Research Center (CIARC) and resource speaker during a seminar, Prospect of Culinary Herbs Agribusiness in the Philippines organized by the Bureau of Agricultural Research (BAR) on 25 March 2008. Growing culinary herb has its own niche in the market according to Dr. Verzola. Although comparatively small at present, the organic section of the market is favoring the demand for culinary herbs, reinforced by the desire to consume natural/organic products. The trend towards a greater variety of ethnic cuisine also offers the prospect towards developing this niche for culinary herbs. Culinary herbs, as defined by Dr. Verzola, are fresh or dried leaves used as food flavoring. Among the popular commercially grown and

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available herbs in the country are: basil, cilantro, parsley, chives, mint, dill, fennel, and tang-o. Other herbs include: lemon balm, tarragon, sage, rosemary, oregano, and thyme. Participants listen in as Dr. Verzola lectures on how these herbs are produced and consumed. Dr. Verzola said that these herbs are used and consumed as fresh cuts, live plants, or dried. Part of diversifying herbs products and as a strategy to realize its full potential, culinary herbs are also made available through valueadding. Among the value-added products developed are: herbals teas, jellies, sauces, herbed vinegars, and wreaths. Currently, the production sites for culinary herbs are located in the Cordillera Administrative Region (CAR) having a favorable and conducive weather condition to grow these herbs. According to Dr. Verzola, there are four production sites in CAR that grow culinary herbs on a commercialscale: La Trinidad, Tuba, Tublay, and Itogon. Since the harvest and storage differ depending on the type of herb, Dr. Verzola said that, fresh herb production could be labor intensive. For example, cilantro, one of the most expensive culinary herbs we have in the market (which cost 100-300 pesos during peak season) must be uprooted, removed of its lower leaves, and then carefully packed. Speaking from their experience in CAR, Dr. Verzola mentioned that culinary herbs are being marketed through several means. Either they sell their products directly to traders farm gate, vend them to wholesalers at

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the Baguio hangar market then to traders or retail consumers, sell them to retailers then to consumers, or trade them directly to consumers. Conceptual Framework The evolution of Culinary Herbs in the Philippines The evolution and combination of oriental and western culinary arts led to the proliferation of indigenous or exotic culinary herbs in the Cordilleras specifically within the Baguio-Benguet production areas. Placing the different culinary herbs in local markets has been the challenge of local farmers today. Although these come in small bulk, assurance of stable production is still of primary concern. Specialized herb farmers make it a point to produce the requirements of consumers including restaurants, shops, and hotels who are into the culinary business. The entry of culinary herbs in local markets is creating waves especially if these are produced by well known farmers or farms which are into health and wellness program and organic farming. In the same manner, farmers who are into business have combined entrepreneurial skills and management to make these a balance competitive endeavor. Culinary herbs grown, produced, and cultivated Quite a number of herbs have been identified by specialized farmers who are into the culinary band wagon. Combined with the demand of consumers, herbs are cultivated and produced mostly through the practice of organic farming or those who use minimal inorganic

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fertilizers and or into pesticide-free management. In order to produce such products, the farmers must adhere to such production management to command high price vis--vis their quality produce. As defined, culinary herbs are those crops either used as fresh or in dried form during cooking process to add flavor and aroma in every dish. Most often, these are chopped thinly or others are boiled and used as broth on specific food preparations. The commonly found herbs in the market are parsley, basil, coriander, cilantro, chives, rosemary, mint, oregano, lemon balm, tarragon, sage, and thyme. The herbs are planted in plant boxes or trays and some on elevated plots which are well drained and managed. Because of their special agroclimatic requirements, these crops are ideal in semi-temperate areas. In the Cordilleras, these are found in households and in commercial scale in sub-urban areas of Baguio like Green Valley and nearby farming barangays in Mount Sto. Tomas and Irisan, La Trinidad particularly in Longlong, Ambiong, Balili, Shilan, Tawang and Alno barangays, Tublay and Itogon municipalities of Benguet. These areas produced the required demand of Baguio market including those of nearby provinces and in Metro Manila. Competitive edge of culinary herbs The limited supply and increasing demand of culinary herbs coming from Cordillera led other provinces to produce and cultivate the crops. With the proliferation of restaurants and hotels, the culinary herbs have

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created a market of its own. Locally, consumers go for the fresh produce because it spices up food served in every table. In Metro Manila alone, the culinary herbs post high demand because a lot of preparations now use these to entice the changing food preference and preparations of the Filipino people. Before, people just add simple spices like garlic, onions, tomatoes, and ginger for taste. Nowadays, culinary herbs are brought into food preparations and share a story of the culinary process. Included as fresh or dried, the herbs make every meal mouth watering and something to crave for. Culinary herbs make it a top of the list of cooks, chefs, and households for a delectable feast. Overall, culinary herbs post higher price and created a niche in the market. Whether in small stalls or fresh deli in supermarkets, these are surely a hit to buyers. Because of their high-end characteristics, they created the competitive advantage over other commodities. This also led specialized farmers to engage and produce the desired and assured quality products. Some of the farms that are into the competitive mode outside Cordillera are found in Tagaytay City, Bacolod, Cebu, Cagayan de Oro, and Davao City. These places are usually the key cities across the archipelago that addresses the culinary herb demands. As such, the increasing specialty farms provide and serve the required demands. Although not in similar agro-climatic condition like Cordillera, these places

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have invested resources and now practice protective agriculture just to meet these demands. These factors taken together made the culinary herbs more competitive over other commodities in the market. Future of Philippine culinary herbs Although demanding a competitive advantage over the other Philippine products, the culinary herbs must be given enough support in Philippine food and culture. The utilization of these crops in every cuisine is a result of the integration of traditional and modern food preparations. Research and development must play an important role in the development, promotion, dissemination including commercialization of the crops. Specific research could focus on marketing, processing, business or enterprise development, community development including farmer-consumer partnership. At the same time, the continuous food discoveries and preparations should be developed more within

mainstream culinary art. In order that more farmers will be engaged in this crop production system, support of the government is a must. Consumers demands must be institutionalized so that farmers will do their share of making all culinary herbs grown and produced the natural way. As new cuisines are developed and served, these must tell a story of production, peoples culture and lifestyle including the process of managing, processing, packaging and marketing. With this in tow, a simple full story of culinary

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herb value chain will be shared to every Filipino that is competitive in every ways.

Synthesis The foregoing review gave the researcher enlighten on to how they will go about their study. The establishing a Culinary Herbs, Spices and Edible Mushroom Kiosk in Dagupan City, Pangasinan will be studied to determine its potential market despite of the existing stall of herbs and dried herbs in grocery available in the local area. A thorough study and analysis along the five aspects will be made to determine the feasibility. The project shall be under a private organization. The researches literature guided the proponents on how the feasibility is to be undertaken. The market, technical, organization and management, financial and socio-economic used by the writers is very useful in the preparation and conceptualization of this study.

CHAPTER 3 RESEARCH METHODOLOGY This chapter presents the research design in the conduct of the study. It includes the method that will be used, the data gathering procedure, instruments and respondents of the study on market, technical, organization and management, and socio- economic aspects.

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Descriptive Method. Involves the description, recording, analysis, and interpretation of data gathered that are relevant to the topic or subject of research (Kerlinger, 1986). It is a fact-finding study with adequate interpretation of findings. It is describes what is, what actually exist like presently practiced situations or phenomena (Calderon & Gonzales, 1993:193). Survey Research Research Design This study will make use of the descriptive-survey research method of investigation in as much as it focused on the feasibility of putting up an Oyster Mushroom Cultivation Business in Dagupan City. Market: proposed target markets are the households, selected restaurants and selected catering services in Dagupan City. Numbers of households and business ventures in the area will be gathered at the Population Commission and at the Municipality Office of Dagupan City. A demand analysis will be conducted among the sample of target market. Technical: the researcher will visit some of the prospect location of oyster mushroom production and will observe the physical layout of the place for the service process and production process, the possible arrangements of products, and equipments that shall be use will be observe and circularize. Organizational and Management: organizational structure of the proposed business will be gather through interviewing some existing

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depot, stores or business that are interrelated to the product of the propositioned business. Financial: projected five (5) years income statement, balance

sheet and cash flow statement shall be projected. A breakeven analysis will also be appended. Socio-Economic: proprietor will intend to earn profit, while the government, community and environment shall benefit from the

opportunities and contribution of the oyster mushroom cultivation in Dagupan City.

CHAPTER 4 DISCUSSION OF FINDINGS

Market Feasibility

Technical Feasibility

Organization and Management Feasibility

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Financial Feasibility

Socio-economic Feasibility

CHAPTER 5 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

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ESTABLISHING A CULINARY HERBS, SPICES AND EDIBLE MUSHROOM KIOSK IN DAGUPAN CITY: A FEASIBILITY STUDY

A business research study presented to Dr. Ragos Collegio De Dagupan Arellano Street, Dagupan City

In partial fulfillment of the requirements for the degree of Bachelor of Science in Business Administration

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by

1st Semester SY 2011 2012

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