Republic of the Philippines

Department of Agriculture
Regional Field Office No. 5
San Agustin, Pili, Camarines Sur

PROJECT PROPOSAL
I. BASIC INFORMATION

: Multicrop Value Adding (Oil, Juice and Flour) Machines/

A. Title of the Project
Equipment, Performance Testing and Showroom Project

: DA-RFO 5 Field Operations Division (FOD) and Regional

B. Implementing Agency
Agricultural Engineering Division (RAED)

C. Implementation Date : January 2021 Onwards

D. Budgetary Requirement : PhP 34,760,000.00

II. TECHNICAL DISCRIPTION

A. RATIONALE
Crop processing is the transformation of raw agricultural products into food, from one form
into other forms. It is a crucial step in converting raw harvested agricultural products into
valuable marketable products. Processing has many facets, whether it’s fine
tuning processing methods for traditional crops, finding new processing approaches for
traditional crops or developing new processes for new crops. Mankind have been
processing foods since time immemorial, whether sun drying, fermenting, brining
(preserving food with salt), cooking (roasting, smoking and steaming) which involved
chemical enzymatic changes to the basic structure of food in its natural form, as well as
served to build a barrier against surface microbial activity that caused rapid decay.

Basically, processing provides the means to extend shelf-life of otherwise perishable

agricultural and other foods, thus increasing choice and reducing the dependency on
seasonality. Other benefits of food processing include a) toxin removal, b) preservation, c)
easing marketing and distribution tasks, and d) increasing food consistency. In addition, it
increases yearly availability of many foods, enables delivery of delicate perishable foods
across long distances and extended voyages and makes many kinds of foods safe to eat by
de-activating spoilage and pathogenic micro-organisms.
Processed foods can help alleviate food shortages during times of pandemic like COVID-
19 and help maintain or even improved the overall nutrition of populations as it made
many new foods available to the masses. Processed foods are usually less susceptible to
early spoilage than fresh foods and are better suited for long-distance transportation from
the source to the consumer. It freed people from the large amount of time involved in
preparing and cooking "natural" unprocessed foods. The increase in free time allows
people much more choice in life style than previously allowed. In many families the adults

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are working away from home and therefore there is little time for the preparation of food
based on fresh ingredients.
Modern food processing also improves the quality of life for people with allergies, diabetics,
and other people who cannot consume some common food elements. Food processing can
also add extra nutrients such as vitamins. Other socio economic benefits of crop processing
benefits for farmers and consumers are as follows:
a. It adds value to crops by processing.
b. Enhanced agricultural productivity and increased farm household incomes
c. Year round availability of affordable safe and nutritious food
d. Job creation for rural and urban youth
e. Production of fortified foods for vulnerable groups in society.
f. Establishment of indigenous food standards
g. Large quantities of agricultural “waste” produced in one location which can be
transformed into useful products such as animal feed.
h. Reduce importation of similar or foreign foods and conserve foreign exchange
i. Export to other countries with inadequate resources for agriculture

While most people in the world still rely on traditional foods for their basic diet,
industrialized countries tend more and more to purchase processed and packaged
foodstuffs for convenience. The increasing number of women who work away from home
and relies on fast and easily prepared food adds additional pressure for such changes.

Under local scenario, crop processing is essential particularly for the bicolanos engaged in
production of perishable crops that easily deteriorates in quality upon harvest. Farmers are
faced with this dilemma whenever simultaneous production of a single crop occurs and the
local market cannot absorb the produce on time to avoid losses. Aside from increasing the
value of the processed commodities, its storage life is prolonged once placed in packed,
canned or bottled containers, thus freeing the farmers from the clutches of the middlemen.

There are various value adding machineries made in Korea that if introduced in Region 5
could support the processing requirement of our local farmers. However, performance of
these machines have not been tested under Philippine condition, hence further evaluation
must be done to determine its applicability under local condition for potential
commercialization. The technical performance of these machines will be recorded including
modifications in case of suitability issues and become the benchmark performance
indicator. Correspondingly, these machines will be offered to existing farmer organizations
for free while serving as a showroom and demonstration facility of crop value adding.

The facility will be designed in such a way that operation is done at the back while farmers
can view at the front or within designated area to see how the machine transforms various
agricultural produce into packed, bottled and canned product ready for market and
consumption. The proposed project is in support to Secretary William D. Dar’s vision of
“Masaganang Ani, Mataas na Kita” for the Filipino farmers. It follows the eight paradigm
of the “New Thinking for Agriculture” by promoting modernization and industrialization
of agriculture through value adding.

B. PROJECT OBJECTIVES

The overall objective of the project is to provide processing support to DA RFO5

nearby high value crops farmer organizations and processors while serving as show
window on how high value crops are processed into juice, oil and powder to other
interested groups.
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 a) Establish a Multicrop Value Adding project for essential Oil, Juice and Flour
equipped with operational Machines/Equipment.
b) Conduct comprehensive and appropriate technology transfer on the part of the
technicians and users
c) Facilitate utilization of the machines by local processors and possible adaptors.
d) Test the performance of the value adding machines.
e) Train the local processors and possible adaptors on the technical, financial and
business operation of a crop processing/packaging business.
f) Assist the adaptors in proposal preparation and loan accessing
g) Showcase crop value-adding/processing technology for juice and flour to students,
farmers and other stakeholders.

1. LOCATION

The project will be located in DA-RFO5 compound in San Agustin, Pili, Camarines Sur. The
front will be made of transparent glass to allow viewing from outside of the operations
taking place. One side will have a training hall and an administrative room where the
project in charge will be stationed with the training officer.

2. ORGANIZATIONAL ARRANGEMENTS

Initial two years of the project will be a joint collaboration between the RAED and the FOD
starting from the design of the building to maximize space, functionality and safety. The
RAED will be in charge of the construction, installation and performance testing of the
machines while the FOD will run the day-to-day activities of the project specifically crop
processing, orientation of walk-in farmer clients and processor as well as the overall well-
being of the facility. Afterwards, the FOD will handle all the activities and the RAED will
serve as on call support during periodic maintenance and repair works. Meanwhile other
specialized concerns and coaching assistance required of the farmers/processors will be
facilitated by the FOD thru the IDU. Specifically the following arrangements are itemized:

A. Regional Agricultural Engineering Division (DA RFO5 – RAED)

1. Work closely with the FOD in the design and selection of processing equipment to
suit local needs.
2. Test run the processing equipment and come up with performance report.
3. Take charge of technology transfer from supplier-to-DA-to-farmer/processors.
4. Prepare operations/user’s manual for all machines and simple repair/trouble
shooting guide.
5. Work hand in hand with the Institutional Development Units/personnel of both
RAED and FOD to provide capacity support to the farmers.
6. Assign a full time staff to provide one on one coaching on operation, maintenance
and repair of machines.

B. Field Operation Division (DA RFO5 –FOD)

1. Supervise the day-to-day operation of the project specifically:

a. Log book entry of all visitors.
b. Courteously entertain all queries regarding the project.
c. Ensure cleanliness of all equipment and building before and after using.

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 d. Make available, the equipment on a daily basis to farmer organizations with
processing needs.
2. Monitor activity of the farmer organization/processor utilizing the project.
3. Thru the support of RAED and AMAD shall assist the farmer organization/processor
clientele secure a loan from a reputable institution in establishing similar project.
a. Prepare pro forma project proposal and business/marketing plan.
b. Consolidate building design, machine specifications, output performances and
other project data for re-order or replication purposes.
4. Thru the IDU shall conduct capability building training to farmer
organization/processor clientele.
a. Assess level of farmer organization/processor clientele
b. Device support, training and coaching program based on assessed weakness or
FO/FA to become mature and be able to effectively manage the enterprise.
c. Monitor the development of the FO/FA.
d. Invite specialist from the other division of DA RFO5 in the coaching and
training activity.
5. Propose budget for maintenance for the succeeding years to sustain the project.
6. Create an advisory committee focused on project sustainability.
7. Appoint a point person to take charge of the project and serve as secretariat
during advisory committee meeting.

3. MATERIALS/TOOLS REQUIRED AND METHODOLOGY

A. Products to be produced

a) Essential Oils

Essential oils such as citronella oil is obtained from the leaves and stems of different
species of Cymbopogon (lemongrass). The oil is used extensively as a source of perfumery
chemicals such as citronellal, citronellol, and geraniol. These chemicals find extensive use
in soap, candles and incense, perfumery, cosmetic, and flavouring industries throughout the
world. Citronella oil is also a plant-based insect repellent and has been considered as a
biopesticide oil with a non-toxic mode of action. It has strong antifungal properties, and is
effective in disincentivizing nuisance barking in dogs when utilized as a spray.

b) Fruit/Vegetable Juices
Fruits are a high-moisture, generally acidic food that is relatively easy to process and that
offers a variety of flavor, aroma, color, and texture to the diet. Fresh fruits are typically
between 75 and 95 percent water, a fact that helps to explain its refreshing character as a
food. In general, fruits are acidic, with pH ranging from 2.5 to 4.5. The most common acids
in fruits are citric acid, malic acid, and tartaric acid. They are usually low in calories but are
an excellent source of dietary fiber and essential vitamins. Owing to the presence of
cellulose, pectin, and various organic acids, fruits can also act as natural laxatives. After
fresh fruit, one of the most common fruit products is fruit juice. Fruit juice can take on
many forms, including a natural-style cloudy product, a “nectar”-type product containing
suspended solids, a fully clarified juice, juice concentrate, and fruit drinks.

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 c) Powdered fruits/vegetables
As early as 2008, the Department of Science and Technology (DOST) has been developing
bread made from indigenous ingredients such as squash to lessen dependence on imported
flour, and amid rising bread prices. Likewise, in one of the feeding programs of FNRI, it was
found out that after the 100-day feeding, there was significant improvement in the
attendance of children in school, in addition to increased weight and significant reduction
in anaemia cases. With this positive findings, the Department of Science and Technology -
Food and Nutrition Research institute (DOST-FNRI) went on a nationwide campaign urging
local bread producers to utilize local products, like squash and coconut flour as
supplementary ingredients of their bakery products in 2012.
Another researchers from the Visayas State University (VSU) in CY 2010 recommended that
squash, being cheap, very nutritious and is locally abundant, should be maximized as a key
ingredient in baking a cake. Since the use of squash in baking a cake is proved to be very
acceptable, wide dissemination of the result of their study is encouraged in venues like
trainings and workshops as product of research for community knowledge enhancement.
For commercial reasons, bakers who produce cakes may consider using squash as one of
the flavours or ingredients to promote healthy pastries. It should also highlight that the
cake product be sold at an affordable price.
According to the Philippine Institute for Development Studies (PIDS), like cereal flours and
soy tempe flour, the squash flour is used in the production of bread and other bakery
products. It is highly nutritious and contains 4.4 g of protein, 191 calories of energy and
5,860 micrograms of beta-carotene per 100 gram sample.

The Department of Science and Technology (DOST) from Bicol announced that the canton-
style noodles from squash are now being sold and gaining ground in Filipino communities
in the United States and Canada. Former DOST regional director for Bicol Tomas Briñ as
said squash noodles were one of the several processed foods developed from nutritious
vegetable that showed potentials for dollar earnings and versatility for multipurpose
applications. DOST is also promoting squash bread that, according to the Food and
Nutrition Research Institute (FNRI), is rich in vitamin A and iron which could help in the
fight against malnutrition among school children in the country.
B. Project Layout

a) Building Layout

The layout is designed to allow unloading at the back and pre cleaning works while the
extraction and packaging will be done at the front behind transparent glass that can be
seen by farmer/processors, students and even passers-by. All designs, materials,
accessories and utensils within the areas enclosing the food processing area will be
food grade and according to BFAD standards.

The driveway entrance and exit will be different to allow parallel parking in the loading
dock , thus prevent overcrowding of incoming and outgoing trucks. Similarly, the small
parking area at the back is too small for truck maneuvering.

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 ENTRANCE DRIVEWAY
EXIT DRIVEWAY PARKING AREA

WAS
UNLOADING DOCK

2nd floor training hall

1st staff office
2nd floor stock room
1st floor tool/steam
H
ARE PRE
A CLEANIN
G
CLEAN ZONE

DISTILLATIO DRYING JUICE

N AREA R
AREA ARE
A

VIEWING AREA ENTRANCE

NATIONAL ROAD

1. Unloading dock

The flooring and dock will be elevated about 1/2m above natural grade line for
protection against rodents but also for easier unloading/loading of the
merchandise. The dock area will be separated from the outside by a transparent
industrial plastic curtain.

2. Pre Cleaning Area

Although preliminary cleaning will be enforced on farm, pre-cleaning at the

processing plant of the leaves, shoots and other materials is very important to
remove foreign materials such as dust, insects and other contaminants.

3. Clean area

The clean area will be separated from the loading dock by transparent industrial
plastic curtain. All personnel who enter here is expected to wear the necessary
gear after cleaning and changing in the wash area.

4. Juicer Area

The juicer area will occupy 6m x 6m of floor space. In here liquid juice will be
extracted from fresh fruits and vegetables suited for juice extraction. It will be
closest to the pre cleaning area since it involves the messiest operation. It shall be
equipped with a separate cubicle for juicing and packaging to prevent
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 contamination of the final product. A stainless kitchen sink with extension hose
will be installed within the juice extraction area for frequent cleaning.

5. Distillation area

Steam distillation process will be employed in the 4m x 4m fermentation area

where clean steam will be injected from the steam room/reservoir to the raw
materials. It shall be equipped with a separate cubicle for distillation and
packaging to prevent contamination of the final product.

6. Drying area

Chipping table and dehydrator will be the basic component of the 4m x 4m

drying area while a separate cubicle will facilitate bagging, weighing and sealing
of the final product.

7. Tools area

Tools needed at the loading dock and pre cleaning will be stored in the 3m x 3m
area. Cabinets and lockers will also be provided for personal belongings and other
necessities. These will be separated by a wooden divider to avoid contamination.

8. Steam Boiler Room

The 2m x 2m steam boiler room will provide the water steam injected to the
plant material in the distillation area via steam tubing. The area will be equipped
with a water heater powered by a solar panel to turn water into heated steam.

9. Stock room

The stock room and other dry and clean raw and non-degradable materials will be
stocked in the second floor. The second floor location is to discourage
farmer/processors from stocking their produce in the project site. Only those for
immediate pick-up or delivery will be stocked.

10. Staff Office

The 6m x 10m staff office on the first floor will house the FOD and RAED staff
assigned in the project together with their working tables and equipment necessary
for their function. The front portion of the staff office like the processing area will
be made of transparent glass so that all visitors will be seen by the staff and
entertained.

11. Training Hall

The training hall that can house about 30 participants is located in the second floor.
The side facing the production areas will be made of window for instructional
purposes to aid in the lecture and coaching works.

12. Comfort Rooms

There will be two (2) comfort rooms (male and female) with a dimension of 2m x 2m
and a shower room located beside the staff office on the first floor.

C. Processes and Equipment Inventory

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The following are the proposed machineries for the project:

a) Oil Extraction by Steam Distillation Process

The distillation process shall involve the following procedures and equipment:

Oil/Water Vapor Hot Water

Vaporized
Oil/Water Vaporized
Plant Oil
(Condenser) Oil/Water
Material (Separator)
(Still)

Steam Cold Water Floral Water

1. The plant material will be placed in a large stainless steel container called a still.
Steam will be injected into the still at controlled quantity.
2. When the steam from the steam boiler is injected through the plant material
containing the desired oils, it releases the plant’s aromatic molecules and turning
them into vapor.
3. The vaporized plant compounds transports to the condensation flask or
the condenser through a series of food grade pipes. Here, two separate pipes make
it possible for hot water to exit and for cold water to enter the condenser. This
makes the vapor cool back into liquid form.
4. The aromatic liquid by-product drops from the condenser and collects inside a
receptacle underneath it called a separator. Because water and oil do not mix, the
essential oil floats on top of the water. From here, it is siphoned off.

PROPOSED EQUIPMENT SPECIFICATION

Juice production and Packaging

Citronella Oil Steam Distillation Machine with the
following attachments:
10-20 li./hour
d) Still
capacity
e) Steam boiler
Food grade
f) Condenser
Electricity driven
g) Separator
h) Food grade pipes (installed and operational)
300-600 kg/hour
Citronella grass shredder capacity
Motor driven

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 20 meters to connect
all processing
machines and convey
Food grade pipes
vapor and essential oil
until packaged in
suitable containers

b) Juice Extraction and Packaging

One of the most common fruit products is fruit juice. Fruit juice can take on many
forms, including a natural-style cloudy product, a “nectar”-type product containing
suspended solids, a fully clarified juice, juice concentrate, and fruit drinks. The
proposed processing of fruit juice in the project involves washing, extraction,
clarification, and preservation.

1. Washing
Washing will be done with a high-pressure soak or spray system. Under some
conditions a surfactant or detergent will be added in order to release tenacious soil
attached to the fruit. Washing is necessary to ensure the safe removal of
microorganisms responsible for mycotoxin formation and possible gastrointestinal
poisoning.

2. Juice extraction
The raw material is prepared for juice extraction by removing unwanted parts. The
following unwanted parts will be removed depending on the fruit:
Pineapple - The peel will be removed
Citrus – will be cut in half and the individual halves reamed to extract both the
juice and the inner fruit solids or reaming technique
Entire fruit with thin skin - it is disintegrated in a drum grater or a hammer mill

The continuous belt press, or bladder press or basket press (rack-and-frame press)
will be used depending on the availability from the donor agency or the local market
with the assurance of parts availability for replacement and comprehensive
technology transfer.

3. Clarification
Juice that will be clarified further or concentrated after extraction will be added with
pectinase. Afterwards, membrane filtration, in which hollow fiber, open tubular, or
ceramic membranes are employed in juice filtration systems.

4. Preservation
Once the juice has been clarified, it is ready to be preserved. For a single-strength juice
packaging line, a typical process is to heat the juice to 88° C (190° F) and then bottle it.

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 This produces a shelf-stable product. For producing concentrate, the juice is passed
through an evaporator, where the level of soluble solids is typically brought to 70
percent by weight. Retail packages of concentrate are typically filled at 45 percent
dissolved solids; at this concentration a three-to-one dilution by the consumer will
create a finished product with a soluble solid level of approximately 12 percent.

PROPOSED EQUIPMENT SPECIFICATION

Juice production and Packaging

Multi product juicer/Juice Extractor 200-400 kg /hour capacity
Cucumber, Carrot, Ginger, Tomato, Pineapple, Heavy duty
Mango, Pili pulp Electric motor driven
200-400 kg /hour capacity
Washing /Peeling Machine Heavy duty
Electric motor driven
Temporary Storage Tank (3 units) 100-300li capacity

Packaging range 20mL - 250mL

Automatic Liquid packaging machine 1/4 -1/2 HP, 220V AC, Single Phase
40 - 60 Pouches / Minute
0.5-0.75Hp
Juice pump (3 units)
Electric motor driven
0.5-0.75Hp
Buffer tank
Electric motor driven
100-300li/hr capacity
Enzyme Suppressor
Electric motor driven
100-300li/hr capacity
Plate type sterilizer
Electric motor driven
Diatomaceous Earth Filter or other filtration 100-300li/hr capacity
system Electric motor driven
Food grade piping system 30 meters to connect all motors and juice
containers until packaged in tetra packs

c) Fruit/Vegetable Flour Production and packaging

The Dry-Blanch-Dry (D-B-D) method shall be used in the drying process of the project.
The D-B-D method allows faster loading on drying trays and easier turning-over of
squash slices during drying.
1. Peeling

The raw material will be peeled, washed thoroughly and cut into segments, and
remove seed cavities.

2. Size reduction

The peeled meat will be sliced into thin layers with a SLICER about 1 cm x 1 cm
size, then soak for about 3 hours in 0.01 percent sodium metabisulfite (1 g
sodium metabisulfite/1 L water) to preserve the food material.

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 3. Blanching
The sliced squash will then be blanched for 15 minutes in warm water then
drained.
4. Dehydrating
The blanched meat will be placed in an oven and heated between temperatures
50 – 55°C.
5. Grinding
Grind the dried samples in coffee/mill grinder and sieve repeatedly.
6. Packaging
Pack in plastic bags or in a tightly sealed jar for safe storage or transport to
malls and retailers.

PROPOSED EQUIPMENT SPECIFICATION

Flour Production (Sweet potato, squash, etc.)

100-500kg capacity/hr
Slicer
All electric motor driven
500-1,000kg capacity/batch
Dehydrator
10 trays
Manual Steam-blancher 100-500kg capacity/hour
100-500 kg/hr capacity
Grinder/Pulverizer
220V
Packaging range 100gms –
1,000gms
Powder packing machine
1/4 -1 HP, 220V AC, Single Phase
40 - 60 Pouches / Minute

Digital kitchen scale Electric/battery operated

III. IMPLEMENTATION SCHEDULE

A. Implementation planning
Upon project approval, the FOD will meet to discuss details of implementation and
come up with documentation to thresh out key issues involving day to day project
operation. Key staff and budgetary requirements shall likewise be firmed up and
submitted to the office of the Regional Executive Director for approval.
B. Construction and equipment procurement
With the help of the donor agency and the BAC members, appropriate equipment and
building design will be implemented to suit the target objectives of the project. Among
the most critical aspect is the technology transfer provision for the equipment.

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 C. Staff capability enhancement
Designated staff will be trained regarding the technology, operational tools to be
utilized and protocols to be followed. Similarly, technology transfer will take place
between the equipment supplier and the DA RFO5 personnel to ensure that the project
will run and be sustainable after turn over.
D. Test Operation
The machines, the facility set-up will be tested by actually going through the production
process and identify key areas and defects that need to be addressed in preparation
with the real thing.
E. Formal turn over and operation
Formal turnover of the project will be done when all components have been test
operated and fully functional and all the systems are in place.
F. Machine performance testing
Upon implementation, individual machines performances will be recorded using forms
for each type to determine usage rate, output capacity, ease of operation, safety and
other features that could serve as basis in future projects procurement.
G. Periodic supervision/monitoring meeting/planning and documentation
Periodic inspection and monitoring meeting will be put in place to tackle relevant
issues of implementation, revise protocols and to come up with win-win solution as
much as possible.
H. Impact assessment
The impact of the project will be gauged by determining the effect of the project to
various type of users namely farmers, processors, students and other crop processing
stakeholders. From the lessons learned, innovations will be incorporated in succeeding
similar projects and those to be put up by the farmer organizations clienteles.

Year 1 Year 2 Year 3

Major Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Project Approval

Implementation Planning
Facility Construction
Staff capability enhancement
Equipment Delivery, set-up, test
run and Technology Transfer
Formal operation

Performance Testing and recording

Periodic supervision/ monitoring

Impact Assessment

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 IV. BUDGETARY REQUIREMENTS:

Specific Output Estimated Amount

Provision of machine (Lump sum) 10,000,000.00

Technology transfer (machine cost, installation and

2,000,000.00
technology training)
Technology Showroom and training Building 20,000,000.00
Machine Testing and Performance
180,000.00
Monitoring/recording
Operation Staff support Counterpart 1,080,000.00
2 Technology Training per Year 600,000.00
Utilities Support 540,000.00
Security Support 360,000.00
TOTAL 34,760,000.00

Prepared by:

NILDA T. ALBAÑO MARY GRACE DP. RODRIGUEZ

Chief, RAED Chief, FOD

Recommending Approval:

LUZ R. MARCELINO
Regional Technical Director for Operations

Approved:

RODEL P. TORNILLA, MABE

Regional Executive Director

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