Coffee Common Service Processing Facility: A Pre-

Investment Study
All about the Product
Coffee is one of the high value crops in the Philippines. Related to its
geographical condition, it is an ideal place to grow quality coffee that List of Indirect Cost Requirement
allows coffee industry to flourish and produce four varieties namely
Particular Unit Cost Quantity Total
Robusta, Arabica, Excelsa and Liberica throughout the country. A
Manager 30,000.00 1 person 30,000.00
substantial portion of the population love coffee as a beverage and as
a health drink with antioxidants that fight free radical. For a farmer, Transportation 3,000.00 4 weeks 12,000.00

coffee is a lucrative business and provides livelihood to many. The Water 500.00 1 month 500.00
coffee consumption has increased by approximately 7% over the past Electricity 5,000.00 1 month 5,000.00
10 years. Meanwhile, coffee production in the Philippines are not suf- Fuel & Oil – equipment 1,000.00 4 weeks 4,000.00
ficient to meet the local demand for the product, making the country LPG 900.00 4 units 3,600.00
import dependent by more than 60%. Hence, this gap shows a great
Preventive maintenance 1,538.33
potential for investment in the coffee industry.
Depreciation 8,303.33
Total 64,941.67
Investment Requirement
Notes: Transportation is outsourced with budget of P3,000.00 per week
List of Equipment/Tools/Machines Requirement
Particular Unit Cost Quantity Total Deprecia- Mainte-
tion nance
Land 1,000.00 500 sq. 500,000.00
m.
Total Project Cost
Processing 350,000.0 1 unit 350,000.00 14000 7000 Sources
Bldg 0 Particular Total
Equity Loan
Drying facility 50,000.00 1 unit 50,000.00 6250 750
& accessories Fixed Assets 2,025,100.00 500,000.00 1,525,100.00
Moisture meter 31,000.00 1 unit 31,000.00 4340
Working Capital 723,621.67 542,716.25 180,905.42
Roasting Ma- chine 900,000.0 1 unit 900,000.00 56250 9000 Pre-operating expenses 5,000.00 5,000.00
(2.5kls/10min) 0
Total Project Cost 2,753,721.67 1,047,716.25 1,706,005.42
Grinder/ 90,000.00 1 unit 90,000.00 11250 810 Cost Sharing Percentage 100.00% 38.05% 61.95%
Pulvorizer
De-pulping 50,000.00 1 unit 50,000.00 3125 450
equipment with
genset Investment Analysis
De-hulling 50,000.00 1 unit 50,000.00 3125 450
equipment Payback Period- 6 months and 9 days of full operations
Weighing scale 2,500.00 1 unit 2,500.00 500 Average Annual Net Profit Margin (ANPM)- 7.45 %
Internal Rate of Return (IRR)- 40.07 %
Sealer 1,000.00 1 unit 1,000.00 500 Return on Investment (ROI)- 52.53 %
Pail 200.00 3 pcs 600.00 300
Total 2,025,100.00 99,640.00 18,460.00 Social and Economic Benefits

 Generate an average annual income of Php 1,446,497.78.

List of Materials/Supplies Requirement  Personnel and laborers will be benefited thru salaries.
Particular Unit Cost Quantity Total Sources  Can induce employment in the locality and help
farmers in coffee production.
Coffee berries 62.00 8,800 kls 545,600.00 Local coffee farms – Albuera, Pal- ompon,  The other value chain actors including logistics, other
Hilongos, Baybay, Ormoc, N. Samar raw material suppliers, retailers and distributors will
also benefit from this investment.
Packaging 7.00 7,040 pcs 49,280.00 Manila & Cebu
Jute sacks 35.00 100 pcs 3,500.00 Local abaca processors
Total 594,880.00

Note: Current farm gate price of dried with hull and skin berries is P60.00 with estimated transportation
cost of P2.00/kilo

List of Labor Requirement

Particular Rate Quantity Total Sources

Plant workers 290.00 10 persons 63,800.00 Local residents

Total 63,800.00

Note: Average working days per month is 22 days

 SUPPORT PROGRAMS
Name of Agency Address Contact Person Contact Details
Program
RAPID Growth Department of Pawing, Palo, Christine A. 0927-455-0104
Project Trade and Leyte Candare
Industry
OTOP Next Department of Tacloban City Jinesse P. Tobio 0936-223-6020
Generation Trade and
Industry –
Leyte
Industry Department of Tacloban City Ernesto B. Montes, 0929-979-2666
Cluster Trade and Jr.
Enhancement Industry –
(ICE) Leyte
High Value Department of Tacloban City Brenda Pepito pca8rm@yahoo.com.p
Crops Agriculture h
Development
Program
(HVCDP)
National Department of Tacloban City Tirso P. Parian, Jr. 832-0825
Greening Environment
Program and Natural
Resources
Coconut- Philippine Pawing, Palo, Joel O. Pilapil (053) 323-9463
Cacao Coconut Leyte
Enterprise Authority
Development
Project
Agrarian Department of Tacloban City Renato G. Badilla (053) 888-5461
Production Agrarian
Credit Reform – Leyte
Program and Biliran PO
Small Department of Pawing, Palo, Glenn Ocaňa 0921-315-5671
Enterprise Science and Leyte
Technology Technology
Upgrading Regional Office
Program (SET- 8
UP)
Agricultural Land Bank of Tacloban City Jecelyn Garcia (053) 321-5836
Credit Support the Philippines Rodriguezsge
Project
MSME DTI Small Pawing, Palo, Elmer Garado 0905-289-8422
Financing Business Leyte
Program Corporation