Republic of the Philippines

MINDANAO STATE UNIVERSITY

Fatima, General Santos City
COLLEGE OF AGRICULTURE

SPRING ONION PRODUCTION

IN PARTIAL FULFILLMENT
OF THE SUBJECT
“AGRIBUSINESS PROJECT FEASIBILITY STUDY”

ABUG, KIMBERLY JANE F.

BANALNAL, ANGELICA JANE N.
DE PEDRO, TEDDY JR. A.
LUBGUBAN, LURA MAE P.
NACARIO, THRISHIA B.
RABUYA, LAIZHA AUGUSTINNE P.

BS ABM
ABM166 - N2
 INTRODUCTION
Spring onion, also known as scallion, is a versatile vegetable that belongs to the family of
Allium cepa. It is widely used in various cuisines across the world for its unique flavor and
aroma. It has long, hollow, green leaves and a small white bulb that are both edible. It is also a
rich source of vitamins A, C, and K, as well as several minerals such as calcium, iron, and
potassium. Additionally, it is low in calories, making it an excellent ingredient for healthy diets.

Spring onion is also easy to grow and requires minimal space and maintenance. Thus, it is
an ideal crop for both home gardening and commercial production. The demand for fresh spring
onions is high throughout the year, creating a profitable market opportunity for farmers.

The proposed product of this project is Spring Onion. As one widely cultivated
commodities in the Philippines, researchers come up with an idea of spring onion production
which has been great potential in the proposed area. The proposed location covers a land area of
11,000 square meter which is located at Purok Maligaya, Barangay San Jose, General Santos
City. Given that the location has a good, waterlogged soil, well-drained ground, and topography,
it is then considerable as a suitable area for the production of spring onion. Aside from that, the
location is also convenient for the accessing the farm-to-market roads which makes it easier for
transporting and marketing the commodity.

In this feasibility study, the researchers explore and determine the feasibility of
engrossing in spring onion production, as well as the potential of cultivating it. Furthermore, the
researchers also aim to provide and assess valuable insights to farmers and investors who are
considering entering the spring onion industry, and to help make informed decisions that will
lead to a profitable and sustainable business, specifically in the city of General Santos.
Table 1. Project Timetable for Activities (2023)
Activities March April May June July

Preparation of
Project
Feasibility

Processing of
Permits and
licenses

Acquisition of
inputs

Construction of
building

Installation of
needed facilities

Start of operation
 MARKET STUDY

Product Description

Spring onion (Allium fistulosum) from the family Alliaceae, locally known as “Dahon ng
Sibuyas” will be the product of the proposed project. The term Spring onion is a general
descriptor used to encompass many different varieties of storage or bulb onions that are pulled
before the bulb has a chance to swell and mature to a large size. Spring onions are harvested
approximately 2 to 3 months after planting and provide bright, fresh flavors, often viewed as one
of the first vegetables of spring. The onions are also entirely edible, including the leaves and
bulb, and can be utilized fresh or cooked.

Spring onions are not just used in flavoring food and in the preparation of soups, and
salads. This plant is important as medicinal plants as it might have potential health benefits.
Spring onions contain vitamin A to maintain healthy organ functioning, vitamin C to strengthen
the immune system, and vitamin K to promote faster wound healing. The onions also provide
calcium to protect bones and teeth, potassium to balance fluid levels within the body,
antioxidants to reduce inflammation, and other nutrients, including phosphorus, magnesium, and
copper. Moreover, Spring onions are easy to grow from seed and will grow in any fertile, well-
drained soil, in full sun and is one of the plants that is grown throughout the year (perennial
plant) and cultivated all over the globe.

Demand

The table 2 shows the historical demand for spring onion from 2018-2022 while Table 3
shows the projected demand for spring onion from 2023-2027, respectively. These figure were
taken from the trader named Felomina Herardo, a resident of Bagsakan Center, Alunan,
Barangay Lagao, General Santos City, the sole contract buyer of this project.
 Table 2
Historical Demand for Spring Onion of (Contract buyer)
2018-2022
Year Historical Demand (kg)
2018 180,000
2019 198,000
2020 90,000
2021 108,000
2022 144,000
*Source: The data was based on the contractual buyer interviewed.

The data for spring onion demand was based on the established buyer of Mrs. Felomina
Herardo. According to her, the demand of spring onion before is high but when pandemic came it
decreases. However, now that it’s back to normal the demand of spring onion gradually
increases. This implies that the demands for spring onion are going back to its usual demand
after it fluctuates due to the pandemic.

Table 3
Projected Demand for Spring Onion
2023-2027
Year Projected Demand (kg)
2023 153,000
2024 162,000
2025 171,000
2026 180,000
2027 189,000
*Computed using statistical straight-line method

The data in historical demand was used to compute the projected demand for the years
2023 to 2027 using the statistical straight-line method. The projected demand for the upcoming
years is still increasing from 153,000 in 2023, to 189,000 in 2017.
Supply

Table 4
Historical Supply for Spring Onion of
2018-2022
Year Historical supply (kg)
2018 108,000
2019 108,000
2020 108,000
2021 97,200
2022 72,000
*Source: The data was based on the contractual buyer interviewed.

The Table 4 shows the historical supply of spring onion. Data were gathered from Mrs.
Felomina Herardo. According to her, the supply was the demand generated by her buyers as she
makes an order to the suppliers based on the predetermined order from buyers. Mrs. Felomina
buys supply from San Jose and if there’s a shortage from San Jose she buys spring onion coming
from Davao. The historical supply shows that the spring onion per kilogram basis decreases in
2022.

Table 5
Projected Supply for Spring Onion
2023-2027
Year Projected Supply (kg)
2023 63,000
2024 54,000
2025 45,000
2026 36,000
2027 27,000
*Computed using statistical straight-line method

Using the statistical straight-line method, it is estimated that production will decrease
year after year.
Demand and Supply Analysis

Table 6 shows the total historical unsatisfied demand for spring onion in which it implies
that there is a noticeable supply and demand gap over 5 years, while table 7 shows the total
projected unsatisfied demand for spring onion, this obtains the difference between the demand
and supply of the commodity in a particular year.

In order to compute the Historical Unsatisfied Demand, the historical supply of spring
onion is subtracted from the historical demand of spring onion, while the Projected Unsatisfied
Demand is computed by subtracting the projected supply of spring onion from the projected
demand of spring onion. The following table shows the unsatisfied historical demand for spring
onion every year.

Table 6
Historical Unsatisfied Demand for Spring Onion in General Santos City
2018-2022
Year Demand (kg) Supply (kg) Historical Unsatisfied
Demand (kg)
2018 180,000 108,000 72,000
2019 198,000 108,000 90,000
2020 90,000 108,000 -18,000
2021 108,000 97,200 10,800
2022 144,000 72,000 72,000

According to the data presented, there is a noticeable supply and demand gap for spring
onion. It indicates that the demand for the year 2018 to 2019 increases, while in 2020 when
pandemic hits it unable to meet the demand and in year 2021 it gradually increasing going back
to its normal demand. It indicates that the supply of spring onion is not sufficient enough to meet
the demand of the people, which implies that this project can surely market its product.
 Table 7
Projected Unsatisfied Demand for Spring Onion
2023-2027
Year Demand (kg) Supply (kg) Projected Unsatisfied
Demand (kg)
2023 153,000 63,000 90,000
2024 162,000 54,000 108,000
2025 171,000 45,000 135,000
2026 180,000 36,000 144,000
2027 189,000 27,000 162,000

The table above shows the demand for spring onion will continue to rise over the next
five years. On the other hand, the supply is constantly decreases, resulting in an increase in
unsatisfied demand. This just shows a favorable market for the proposed project.

Price Study

Table 8
Historical Price of Spring Onion
2018-2022
Year Farm Gate Price/kg
2018 ₱70/kg
2019 ₱70/kg
2020 ₱70/kg
2021 ₱70/kg
2022 ₱80/kg
*Source: The data was based on the contractual buyer interviewed

The historical farm gate price for spring onion is based on Mrs. Felomena Herardo’s
agreed price with farmers where she gets her supply of spring onion. As shown in the table
above, the price of spring onion remains the same in year 2018 to 2021 and only increases in
year 2022.
 Table 9
Projected Price of Spring Onion
2023-2027
Year Farm Gate Price/kg
2023 ₱83/kg
2024 ₱86/kg
2025 ₱89/kg
2026 ₱92/kg
2027 ₱95/kg
*Computed using statistical straight-line method

Using the statistical straight-line method, the result shows that prices will continue to
increase for the coming years.
 MARKETING PROGRAM

The target market of this project will be Mrs. Felomina Herardo. After of several weeks
and months, the spring onion would be ready to harvest, well packed and will be directly
delivered to Mrs. Felomina. The prices are based on farm gate price agrees on. The spring onion
will be harvested by the producer. When the spring onion reaches maturity or when the plants are
around 15cm (6in) tall and the bulbs are stills small, less than 2.5cm (1in) across. The mode of
payment for the Spring Onion is cash-to-cash basis. This implies that spring onion will only be
delivered to Mrs. Felomina Herardo which is the contract buyer.

Figure 1

Marketing Channel

SPRING ONION

Mrs. Felomina
Herardo
(Contract Buyer)

FACTORS AFFECTING THE MARKET

Under normal circumstances, the forces of demand and supply determine the price of
spring onions in the market. When the quantity of onions increase in the market, there will be
more supply than the demand for it, as such, the price will fall. The quality of spring onion will
also be affected by the incidence of pests and diseases, and poor crop management. Low quality
spring onion affects the price as to which it will be marketed. Producers must know the
preferences and needs of the customer. Demand for red spring onion also determined by the
number of consuming population in the area.
 TECHNICAL STUDY

I. THE PRODUCT

The proposed commodity was Spring Onion (Allium fistulosum) production. Spring
onions, botanically classified as Allium cepa, are young onion plants that have been harvested
prematurely, belonging to the Alliaceae family. It has elongated food storage leaves which are
hollow and rounded. It also has a short bulb stem and a fibrous root system which exists at the
base of the bulb stem. This member of the Allium genus is a proven antibacterial vegetable that
can potentially ward off dangerous bacteria such as E. coli. They’re also a prebiotic, which is
good for a healthy gut and being able to fight inflammation. Spring onion production is chosen
for this feasibility study because of its benefits and characteristics - they are perennials that keep
coming back year after year.

Recommended cultural practices should be followed and proper maintenance is needed

and/or recommended to attain good quality of spring onions higher productivity.

II. PROJECT LOCATION

Spring onion production will cover 11,000 square meter, 200 meters length and 55 meters
wide, and it is located at Purok Maligaya, Barangay San Jose, General Santos City. We preferred
this area since it is suitable for the growth of spring onions given its waterlogged soil, well-
drained ground, and climate change which is wet and dry season. The said area has a
combination of flat and semi sloping land. Moreover, the soil type of the area where the
production should be done is sandy and loamy which water drains well and it is also appropriate
for growing spring onion. Furthermore, Barangay San Jose has a good location for spring onion
along with its wide land area. It is also convenient to access land transportation, as well as the
market which is one of the necessities in spring onion production.
Figure 2. Location map

Prk.
STO. NIÑO

BARANGAY SAN JOSE ROAD

Vineyard
Spring
Resort

Dole Stanfilco
San Jose

PROJECTED AREA
(PRK. MALIGAYA)
Figure 3. Area for Spring Onion Plantation

This is the area for spring onion plantation. The area can be identified as ideal for spring
onion production due to its fertile soil and topography. And the area also is near to the irrigation
which is the primary need for planting and growing of spring onion. The said area has a total of
11000 square meters with the dimension of 200 meters x 55 meters.
III. PROJECT LAYOUT

Figure 4. Project Layout

Figure 5. Bed Layout

Bed size: Length: 53m, Width: 9in

Distance Per bed: 5in
Total Number of Bed: 450
Figure 6. Distance per plant

Distance per Plant: Length: 5in

Width: 2in
VI. PRODUCTION MANAGEMENT

FARM MANAGEMENT PRACTICES

Land Preparation:

The land preparation will take 1 day to till and pulverize the soil by harrowing and

plowing. The soil will be plowed using tractor with implements attached. After harrowing apply

urea to promote green leafy growth and make the plant look lush. On the other hand, bed

preparation must be followed using plough and carabao with two manpower and will be done in

just 2 days.

Figure 12. Soil Analysis

Table 10. Bills of Materials for land Preparation

Particulars Day(s) Quantity Cost/unit Total Cost

Tractor rental for 1 1 ₱4000/ha ₱4000

land clearing

Urea 1 sack/25kg ₱1,500 ₱1,500

Bed preparation 2 days 2 men power ₱500 ₱2000

Soil Analysis ₱150

TOTAL
Nursery & Sowing

Seedlings can be purchased in early spring at most nurseries. The time to plant is in

spring, although in warmer sub-tropical areas winter planting is successful. They will grow well

in part shade, and we grow ours where they get good morning sun, and light afternoon shade.

Seeds are then supposed to be planted in already made furrows about 15cm apart 2-3cm

deep. To make the seeds much safer in a good position for germination, a mulch of grass or

banana leaves should be made over the bed to protect the seeds from splashing out when the bed

is irrigated.

Spring onions germinate after 10 days. The mulch is then removed and used to make a

shade above the tender plants.

Table 11. Bills of Materials for Nursery & Sowing

Particulars Day(s) Quantity Cost/unit Total Cost

Seedling 200 cans ₱515/can ₱103,000

Labor 4 men ₱300/day ₱1,200

Total ₱104,200

Transplanting

Transplanting of seedlings is done about 4-6 weeks after sowing in the nursery or when

the seedlings have pencil thick base and a height of about 15cm.
 Transplanting is done in cool weather thus early in the morning or late in the evening due

to sun scotch. In case transplanting is done during dry season, the field should be irrigated before

and after planting to enable them establish.

Table 12. Bills of Materials for transplanting

Particulars Day(s) Quantity Cost/unit Total Cost

Labor 2 days 20 man power ₱300/day ₱12000

TOTAL ₱12,000

Irrigation

The moisture of the soil should maintain, it is recommended to water the seedlings

regularly after transplanting up to the time leaves on the first few plants start to fall. The interval

of irrigating the plants depends largely upon the weather and soil conditions in the

locality. Irrigate when the soil begins to crack.  Under normal conditions only one irrigation is

needed. Water during dry periods, and water container-grown spring onions regularly to keep the

compost moist. Don’t over-water, as this could leave the plants prone to diseases like downy

mildew.

Weeding

There must be no grass at the seed bed within 30 days. After 4 weeks of transplanting

weed regularly, preferably by hand, as spring onions have shallow roots which could be damaged

by hoeing. There will be 4 persons needed in this activity that will take for at least 2 days.
 Table 13. Bills of Materials for Weeding

Particulars Day(s) Quantity Cost/unit Total Cost

Labor 2 days 4 man power ₱150/day ₱1,200

TOTAL ₱1,200

Fertilization management

Table 14.

Particulars Unit Quantity Cost

Aldiz

Bayer

BASF

Harvesting

Harvesting time can come by as early as two months after sowing seeds, but some need

another 2-4 weeks. Spring onions are ready to eat when the leaves are standing tall, green and

succulent. Harvesting can be done manually. Pull them up, shake off the soil, and lay them out to

cure with the tops still attached. Transporting it to storage area.

Table 15. Bills of Materials for Weeding

Particulars Day(s) Quantity Cost/unit Total Cost

Labor 2 days 10 man power ₱300/day ₱6000

TOTAL ₱6000

Packaging

After harvesting, spring onion will be sort in packaging area. After sorting, spring onions

will be weighed and directly packed in transparent cellophane in which consist of 7kg per

bundle. This is done by 5 persons through hand packaging.

Table 16. Bills of Materials for Packaging

Particulars Unit Quantity Cost Total Cost

Transparent

cellophane

Tie box PCS 10 90 ₱900

Labor 5 man power ₱300/day ₱1500

Total

Marketing

Spring onion will be directly sold to the contract buyer after harvesting. The harvested

spring onion will be delivered by the producer to the buyer Mrs. Felomina Herardo.

Waste Management
 Biodegradable and non-biodegradable wastes will be separated. The non-biodegradable

waste will be given to the garbage collector which is schedule every Saturday while the

biodegradable waste will be bury in the soil.

PEST, DISEASES AND CONTROL

Pests and Diseases Symptoms Control

Maggot Stunted or wilting seedlings; plant Kotetsu (1 bottle)

will commonly break at soil line if

an attempt is made to pull it up; if

infestation occurs when plants are

bulbing, bulbs will be deformed and

susceptible to storage rots after

harvest; adult insect is a greyish fly

which lays white, elongate eggs

around the base of the plant.

Thrips Discolored, distorted tissue; scarring Insecticides, three guard (1

of leaves; severely infected plants sachet)

may have a silvery appearance

The following are the control measures to be applied when pests and diseases strike in

spring onion to prevent damages.

Table 17. Pest, Diseases and its Control