Republic of the Philippines

OFFICE OF THE BARANGAY COUNCIL

Cacao, Zamboanga City

POVERTY PROJECT PROPOSAL

Barangay Cacao

Project Title: Coconut Oil and Vinegar Production and Organic Farming
Type of Project: Poverty alleviation project
Project Proponent: Cacao Rural Improvement Club (Women) and Cacao Farmers
Association (Farmers)
Project Holder: BLGUs
Number of Beneficiaries: 55 members
Location of Beneficiaries: Purok 1 to 7, Zamboanga City
Date of Implementation: 2021
Areas of Project Implementation: Puroks 1, Cacao Zamboanga City
Budget Request:

BACKGROUND AND RATIONALE:

Long time ago, this Barangay called Cacao had no name of its own. But this place has a trail which passes through the
middle in going up the nearby mountain of rain forest, where hunters and prospective farmers from Barangay Cabaluay
and other neighboring barangays, used to hunt wild animals. Being rocky and stony, and slippery during rainy season,
Cacao is an extensive open plain or Savannah. So that people passing this way during sunny days find comfort and relax
underneath an evergreen tree near the trail. And this tree with the abundant green leaves was later on known to be Cacao.

Barangay Cacao is situated at upland area of this city located 20 KM east of this city with total population of 1, 882
people. Barangay Cacao is abundant with coconut tree where it was the primary source of income of most constituents.
Also, it is mostly composed of farmers and women, which is needed for augmentation of income especially during dry
season.

Virgin Coconut Oil is the oil obtained from the fresh, mature kernel of the coconut by mechanical or natural means, with
or without the use of heat, without undergoing chemical refining, bleaching or deodorizing, and which does not lead to the
alteration of the nature of the oil. Virgin Coconut Oil is an oil which is suitable for consumption without the need for
further processing. Vinegar is the liquid produced by the alcoholic and acetic acid fermentation of one or more of the
different crops rich in starch or carbohydrates.

The organizations see and prioritize these two products as their livelihood since members of the organizations were
mostly have planted coconut trees. Raw materials for the production of vinegar and coconut oil will not be an issue since
coconut are abundant in barangay Cacao and members are willing to counterpart certain number of coconuts trees for the
project.

Proposing in its implementation for this project to help increase income, especially for the vulnerable family that do not
have a proper job or source of income.

PURPOSE AND OBJECTIVES OF THE PROJECT

The ultimate aim of this livelihood project is to alleviate fifty five (55) families from the poverty represented by farmers
and women. And consequently, it helps to increase income and generate employment opportunities for the community's
sectoral groups, and produces reliable and affordable consumable products on the market.

Providing low-income beneficiaries with a livelihood program and building capacity in the development, financing and
marketing of potential products, including enterprises.
To encourage enterprise-oriented, community-based organizations, collective development and long-term sustainability
marketing techniques.

To produce crop with a high nutritional value through organic farming and to maintain and improve long term fertility and
sustainability of farm land. And, to optimize the health and productivity of interdependent communities of soil life, plants,
animals and people.

Training and livelihood projects are given to farmers and women sector members, in particular on the production of
coconut oil and vinegar as an intervention to alleviate poverty. Product development as One Barangay One Product and
enterprise development.

Increased capacity of the communities in production, management and marketing of products, including enterprise.

Economically-viable and sustainable community-based organization are managed by the communities for successful
production and marketing.

OBJECTIVE TARGET RESULTS STRATEGIES

to alleviate the 60 families from the Training and livelihood projects areConduct of entrepreneurship mind
poverty represented by farmers and given to farmers and women sector setting workshop;
women members, in particular on the Packaging and labelling;
production of coconut oil and vinegar
Marketing;
as an intervention to alleviate poverty
Book keeping;
Training on coconut oil and vinegar
it helps to increase income and generate Product development as One production
employment opportunities for the Barangay One Product and enterprise
community's sectoral groups, and development.
produces reliable and affordable
consumable products on the market.

Providing low-income beneficiaries Increased capacity of the Work in collaboration with the line

with a livelihood program and building communities in production, agencies
capacity in the development, financing management and marketing of and the industry along with non-
and marketing of potential products, products, including enterprise. government organizations
including enterprises.

To encourage enterprise-oriented, Economically-viable and sustainable develop   community owned   and  

community-based organizations, community-based organization are managed institutions   to   sustain the
collective development and long-term managed by the communities for livelihood activities
sustainability marketing techniques. successful production and marketing.
 To produce crop with a high nutritional Farmland productivity and Conduct training on producing
value through organic farming and to sustainability organic fertilizers.
maintain and improve long term
fertility and sustainability of farm land. Organic farming produces a crop with
And, to optimize the health and a high nutritive quality.
productivity of interdependent
communities of soil life, plants, animals
and people.

OPERATION

Following are the implementing guidelines in running the livelihood project:

1. The livelihood shall be run and monitored by the officers’ lead by the two presidents of the two associations.
2. Production and storage shall be at the production area and shall be managed by the same or other member
assigned.
3. Twice a week, or as necessary, inventory shall be conducted for replenishment.
4. Purchasing shall be at the discretion of the manager upon approval of the president or treasurer.
5. Any member who wishes to sell products, shall be allowed upon the approval of the majority of the officers, on
commission basis.
6. The president or her designate shall report the status of the project periodically or as necessary.

MARKETING PLAN

The produced products will be endorsed through Social Media particularly Facebook page to be created by the both
farmers and women associations. Other than the group, the Barangay Local Government Unit of Barangay Cacao and its
officials will also help in promoting the products in the community.

Aside from this kind of marketing, the association will also be offering a special price for the members and customers
who are willing to be Re-sellers of the Product.

Established market with Sari-Sari store owners, other barangays, line agencies and offices of both public and private
agencies. Also, to market the products through the house-to-house schemes by the members of the associations.

PRODUCTION PLAN

Coconut Oil Production

 Raw material selection – Good quality, de-husked, mature coconuts, are selected for processing. De-husked nuts
of good quality are usually dark brown in color and with depressed ‘eye’. De-husked nuts with cracks are rejected
as it may be spoiled and rancid.
 Splitting/cracking – de-husked nut is split open mutually in two using a heavy type kitchen knife or a stainless-
steel flat bar. Splitting is done along the ‘equator’ of the producing two half kernels. the coconut water is collected
into containers for further processing. (Coconut water will be used in vinegar making by the traditional method)
 Grating – the coconut meat inside the half kernel is grated with the use of a motorized grater or manual grater. It
is pushed towards the rotating blade of the grater to produce the grated meat. Grated coconut meat is collected in a
container.
 Milk extraction – is done by using a milk extractor or presser. Grated coconut meat is fed to the extractor and the
whole milk is collected to a container. The pressed meat is pressed two to three times to increase the yield of milk
extraction. (The pressed meat or “sapal”, the residue after extraction can be used as animal feed and food snack).
 Cream separation – whole coconut milk with an added water (4x or 5x its volume) is passed to a centrifuge to
separate it into skim milk (watery portion) and coconut cream (oily portion). This step ensures high purity of
VCO by removing unwanted components of the milk.
  Heating – using a frying pan, the coconut cream is subjected to heating to produce crude virgin coconut oil.
Heating is stopped when the oil has separated and clarified with minimum bubbles observed.
 Filtration – the crude VCO is further processed by filtration using a cheese clothes and filter papers.
 Packaging – the final virgin coconut oil is packed into glass or bottles and labeled accordingly. Bottled products
are then placed into boxes.

Process flow

COCONUTS

MILK SEPARATION
SPLITTING/CRACKING

HEATING
MILK EXTRACTION FINISH PRODUCTION
VIRGIN COCONUT OIL
FILTRATION
ADDITION OF
WATER/FILTRATION
(water is 4x to 5x the
PACKAGING
volume of milk)

Vinegar production

 Traditionally, vinegar production takes about 4 weeks to 15 weeks to complete and to obtain 4-5% acetic acid.
 Process involves:
o Yeast fermentation of coconut water to produce an alcoholic solution;
o Further fermented to vinegar by means of the so-called acetic acid bacteria.
 The process is carried out simply by exposing to the air the partially fermented coconut water with the “starter”
containing acetic acid bacteria.

Process flow
PRODUCTION OF VINEGAR

COCONUT WATER

FILTERING ACETATOR

PASTEURINZING AND PASTEURIZATION

HARVESTING
COOLING (optional)

MIXING WITH SUGAR BOTTLING

SETTLING AND
FILTERING
ALCOHOLIC
FERMENTATION
(1-2 weeks)
Raw materials such as coconut are provided by the identified beneficiaries both women and farmers with coconut trees
and as decided by both associations. Trained members of the both associations in coconut oil and vinegar production are
directly involved in the production. Payments for the labor and services rendered by the members are depending on the
arrangement of the associations. Other members that are not part of the production can sell their products on a
commission basis. Whatsoever, the remaining profits of the association will be used as revolving additional investment.

MANAGEMENT PLAN

Equipment and Production Material Php52,500.00

Raw materials Php7,000.00

Total Number of produced products 100 bottles coconut oil

100 bottles vinegar

Capital per bottle Php30.00 for vinegar

Php40.00 for coconut oil

Price per bottle Php65.00 for vinegar

Php80.00 for coconut oil

Earning per bottle Php40.00 for coconut oil

Php35.00 for vinegar

Total Earnings: Php7,500.00

Coconut Oil (Php40.00x100) Php4,000.00
Vinegar (Php35x1000) Php3,500.00

Php7,500.00 earnings for each production period that can be used again as additional resources for the production that
succeeds. And can also be used on other possible association projects.

PROJECT MANAGEMENT

The management team shall be composed of the following;

1. President – provides strong leadership in the association and responsible for the business operation of the
association.
2. Vice President – assist the President in running the operation of the association and replace in the absence of the
President.
3. Treasurer – responsible for the safekeeping of the cash and other cash equivalents, receiving collections and other
payments and disbursing cash for operational expenses and other payments. To collect the income and handle the
cash inflow and outflow. To keep records and to report periodically.
4. Auditors – composed of the association’s auditor and the president. To review the sales and income periodically.
Responsible for checking the business operations financial records.
5. Project manager – a trusted bonafide member of the association, appointed to run the livelihood. To keep records
of the sales and incidental expenses. Oversee the day-to-day operation of the livelihood.
6. Punong barangay – oversee and supervise on the status of the livelihood project.

ORGANIZATIONAL STRUCTURES

BUDGETARY REQUIREMENT

Unit Materials Unit Price Total Price

1 pc Presser 12,000 12,000
1 pc Grater 3,000 3,000
2 pcs Blender 2,500 5,000
2 bonds Cheese cloth 250.00 500.00
100 pcs Bottle container 20.00 2,000.00
100 pcs Plastic bottle container 20.00 2,000.00
5 pcs Plastic pail (big) 600.00 3,000.00
10 pcs Plastic pail (small) 420.00 4,200.00
2 pcs Frying pan (big) 1,600.00 3, 200.00
2 pcs Spatula (big) 200.00 400.00
5 pc Frying filter 200.00 1,000.00
1 pc Burner (big) 1,600.00 1,600.00
5 pairs Proof gloves 50.00 250.00
5 pairs Rubber gloves 70.00 350.00
1 tank Gasul tank (big) 15,000.00 15,000.00
Total 53,500.00

Infrastructure (production area) 70,000.00

Grand Total 123,500.00

BUDGETARY REQUIREMENTS
BUDGET ITEMS BLGU COUNTERPART REQUESTED TOTAL
FROM ZABIDA
Tools and other 3,500.00 50, 000.00 53,500.00
materials
Production area 70,000.00 70,000.00
Snacks during the turn 2,000.00 2,000.00
over
Other operational 2,000.00 2,000.00
expenses
Total cost 127,500.00

PROJECT IMPLEMENTATION

Activity Date of Target Participants Resource Budget Venue

Implementation Speaker
Sectoral organizing 2020 Women, Farmers Barangay

Association 2021 BLGU-coordinator, DOLE

certification Women
representatives

Entrepreneurial mind 2021 Women, Farmers DTI, DOLE

setting training

Packaging and 2021 Women, Farmers DTI

labelling training

Workshop on Book 2021 Women, Farmers DTI, DOLE barangay

Keeping
Training on Coconut 2022 Women, Farmers PSA PSA
oil production

Training on Vinegar 2022 Women, Farmers PSA PSA

Production

Training on 2022 Women, Farmers DTI, DOLE

 Marketing strategies
Training on Organic 2022 Women, Farmers OCA
farming
-vermiculture
-liquid fertilizer
-Organic composed

Canvassing and 2022 Women, BLGU

Purchasing of
equipment

Production of 2022 Women, Farmers

coconut oil and
vinegar
Monitoring and 2022 Women, Farmers ZABIDA
evaluation

SUSTAINABILITY

The project focuses on the creation and strengthening of community-based organizations, which are essential to sustaining
community trust. The project will start with a plan to fundamentally facilitate the organization's own resources and act
accordingly from the start. By the end of the project, the Women's and Farmers' Associations will have a strong technical
capability to prepare, organize resources, increase output, access markets, and share revenues as a well-managed
institution. The project aims to increase the community's capacity to manage resources sustainably, which will be
accomplished through comprehensive capacity-building events held throughout the project's duration.
What Compliance Counter measure Who When
indicator
Facilities Clean and in order, Replant, replace PCA farmers and When necessary,
cultivate and and repair members when rainy season
fertilize comes
Amenities, Complete and in Replace, repair --- Weekly or when
equipment, order, check, necessary, when
materials inspect there is production
Supplies: Coconut Completer as per Replace, re order --- ---
and Gas list
AREAS OF PROJECT IMPLEMENTATION:

The area of project implementation will be located at Purok 1, Cacao, Zamboanga City. A well ventilated
with own water source and enough space that is good for the production of products.