Professional Documents
Culture Documents
This e-book is presented to you by Southern Philippines Research and Extension (SOPREX)
Foundation.
By downloading this e-book, you agree to retain all the links contained in this document. You
also agree to properly cite SOPREX Foundation if you are going to copy and/or distribute this
document.
This work is licensed under the Creative Commons Attribution-Noncommercial 3.0 Unported
License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc/3.0/ or
send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California,
94105, USA.
SOPREX Foundation
SOPREX/MIND-BIOS Bldg., MSU-IIT Campus
A. Bonifacio Ave. Tibanga, Iligan City. 9200
(063) 223-8077 / FAX: (063)2238481
Partnerships in Local Enterprise Development
and Governance Sustainability (PLEDGES) Program
The Project involves the retail of block ice and trading of high-value fishes. For this purpose two (2) units of
cold storage facilities shall be fabricated and installed in the Project site. One unit shall be used for storage of
block ice with a capacity of 24 ice blocks or 3 MT at 125 kgs per block. The other unit, designed as walk-in to
allow ease of product handling, shall be used for storage of fish with a maximum capacity of 1 MT. Fabricated
all-steel, each cold store unit is estimated to weigh only 2 MT and is thus easily transportable to any remote
place with road access.
Using a V-type or belt-driven 3HP compressor for each cold store unit, the project can operate continuously
during power outages by using a small stand-by diesel generating set of 7HP or more. For this reason, the Mini
Cold Store can also be located in remote fishing villages where electricity is not available.
The Project shall purchase block ice from ice plants in the capital city at the estimated price, delivered, of P130
per block and retail the ice to local consumers, primarily small-scale fishers at a mark-up of 25%. The Project
shall also purchase the fish caught or harvested by the local fishers/fish farmers at an average cost of P60/kg
and sell to consumers in nearby urban centers at a mark-up of 50%.
ANNUAL NET INCOME BEFORE INTEREST & TAXES: PhP 1.11 million
COST OF COLD STORAGE UNITS: PhP 200,000 (3 MT Block Ice Storage) and PhP 150,000 (1 MT Fish
Storage)
RETURN ON INVESTMENT RATE (R0I) /PAYBACK PERIOD: 102.1% p.a. / 1.0 year
I. PRE-OPERATING EXPENSES
1 Consultancy Fee (FS/Detailed Engineering Plans Prep & Organizing/Training) 50,000
2 Business Licenses & Permits 5,000
3 Travel/Perdiems & Business Meetings 10,000
4 Miscellaneous 5,000
Sub-Total 70,000
II. FIXED ASSETS ACQUISITION
1 Land & Land Improvements
a. Land: 100 sqm @ P1000/sqm 100,000
b. Warehouse: 50 sqm @ P2,000/sqm 100,000
Sub-Total Land & Land Improvements 200,000
2 Machinery and Equipment
a. Ice Storage, 1 unit, 3HP Single Phase, 3MT (24 blocks) capacity 200,000
b. Agri-Fishery Products Storage, 1 unit, 3HP Single Phase, 1MT capacity 150,000
c. Diesel Engine, 10HP, 1 uint 50,000
d. Ice Crusher w/ 1HP Electric Motor, 1 unit 5,000
e. Materials Handling Tools/Equipment: 1 Lot 1,000
Sub-Total Machinery and Equipment 406,000
TOTAL FIXED ASSETS ACQUISITION 606,000
III. INITIAL WORKING CAPITAL
Cost of Sales 382,329
Administrative/Selling Overhead 28,131
TOTAL INITIAL WORKING CAPITAL 410,460
TOTAL INVESTMENT REQUIREMENTS 1,086,460
A. ICE STORAGE/RETAILING
1 Days of Operation Per Year: 365
2 Volume of Sales (No. of Ice Blocks): 24 blocks/day 8,760
3 Unit Cost of Ice Blocks, delivered (Pesos per Block) 130
4 Retail Gross Profit Margin (% of Purchase Price): 25%
5 Direct Labor Cost (% Commission of Sales): 2%
6 Ice Cold Storage Operations Overhead Expenses
a. Energy: Diesel Engine Fuel & Oil Consumption (Pesos Per Day) 158
b. Miscellaneous Expenses (Pesos Per Month) 50
c. Repairs & Maintenance Factor (% Per Annum of Fixed Assets) 15%
d. Depreciation Factor (Average Economic Life in Years of Fixed Assets): 5
B. FISH STORAGE/TRADING
1 Days of Operation: 365
2 No. of Cycles of Fish Buying/Trading @ 7 days/cycle 52
3 Volume of Sales (No. of Kgs) @: 1,000 kgs. per cycle 52,143
4 Unit Buying Price of Fish, 1st Class (Pesos/Kg) 60
5 Wholesale Trading Gross Profit Margin (% of Buying Price): 50%
6 Direct Labor Cost (% Commission of Sales): 2%
7 Fish Cold Storage/Trading Operations Overhead Expenses
a. Energy: Diesel Engine Fuel & Oil Consumption (Pesos Per Day) 158
b. Ice Consumption Rate During Transport to Market Outlets (% of Fish Volume) 33%
c. Miscellaneous Expenses (Pesos Per Month) 50
d. Repairs & Maintenance Factor (% Per Annum of Fixed Assets) 15%
e. Depreciation Factor (Average Economic Life in Years of Fixed Assets): 5
C. ADMINISTRATIVE/SELLING OVERHEAD EXPENSES
1 Basic Monthly Salaries & Wages, Administrative & Selling Personnel:
1 Supervisor/Cashier 12,000
1 Bookkeeper/Clerk 6,000
Total Basic Monthly Salaries & Wages, Administrative & Selling Personnel: 18,000
2 SS & Other Employee Benefits (% of Basic Salary/Wage Rate) 15%
3 Utilities (Light, Water, Telephone) Cost per Month (Pesos) 1,500
4 Other Administrative & Selling Overhead (% of Gross Sales) 5%