Professional Documents
Culture Documents
ON
CASSAVA PRODUCTION
Submitted to:
Janice S. Cataag
Submitted by:
Melanie L. Quirol
Jayson N. Jaron
The success of this Feasibility Study cannot be truly defined without the
presence and willingness of several people who lent their hand to help the
authors. The authors are very grateful and therefore they wanted to extent their
To the author’s beloved parents for their everlasting moral, financial and
Father for His unending love, support, blessings and guidance to the author’s
quest of life.
CHAPTER 1
PROJECT SUMMARY
the first letter of the proponents’ name which is Jayson and Melanie. The
business.
B. Location
The proposed site will be established at Purok Gemelina, Homelot,
transportation facilities that are essential for the easy flow of all the transactions
of the business. Electrical power and water supply exists in the project site.
C. Project long Range Objectives
The proponents expected that after five or more years, the business will
become more productive, could generate more income and pursue more flour
processors in the entire Philippines upon making them one of the biggest
Cassava is one of the most in demand product in the local market. Aside
from being a promising substitute as staple food, it can also divert into new
products like flour and kakanins. There will be more demand for this product
because it is not only for food consumption but it also used to cure some
diseases. It can also provide employment to individual who certainly need job.
3. Project Potential
The project has a great potential because of its many uses. It serves as
4. Investment cost
The proposed project will need the total amount of 980,285.814. This
amount will be used in purchasing raw materials, tools, equipments and office
supplies. It also includes Land rental, transportation cost, labor and other
expenses.
5. Mode of Financing
The proponent will acquire loan from the Rural Bank of Montevista (RBM),
flour processor and other uses of this product. This product is a promising
substitute as a staple food in times of rice shortage. Aside from the fact that there
were only producer of the product since the flour processing industry are far from
2. Technical Feasibility
practices in growing cassava. In this regard, all the necessary procedures and
management should be followed and applied. The production process involve land
In addition, proper care and maintenance of the farm area are needed in
order to attain higher yield. Proper amount of fertilizer and pesticides will be
3. Financial Feasibility
The total investment of the project will be 980,285.814 of which Php
600,000.00 will be loaned from the Rural Bank of Montevista (RBM), Pantukan
proponents’ investment. The collateral of this loan will be the land title of one of
the proponent.
4. Socio-Economic Feasibility
The project has a positive effect to the society as well as in the economy
5. Management Feasibility
Supervision and leadership are necessary to make the venture viable. One
of the proponents will assumed as the manager of the project. He will conduct
regular monitoring of activities in the farm and will keep tracking behaviour of the
month.
The labourer does the activities in the production process. The contractual
worker will only be hired during the preparation of the site and during harvesting
period. On the otherhand, the caretaker will serve as the regular worker in the
project.
CHAPTER II
MARKET STUDY
A. Product Description
kahoy”. It is a woody shrub, the root of cassava is long and tapered with a firm
homogeneous flesh encased in detachable rind about 1mm thick, rough and
brown on the outside. The flesh can be chalked-white or yellowish. Cassava root
are very rich in starch and contain significant amount of calcium (50mg/100g) ,
crop in tropical region for its edible starchy tuberous roots as a major source of
and pain and also cooked and eaten. It is also use to treat irritable bowel
syndrome.
B. Demand Analysis
Historical Values of the Demand of Cassava for the Past Ten Years
Year Demand %increase/decrease
2001 1,852,371.51 N/A
2002 1,815,917.88 -1.97
2003 1,784,489.5 -1.73
2004 1,876,015.44 5.13
2005 1,890,347.76 0.76
2006 2,004,668.88 6.05
2007 2,027,685.84 1.15
2008 2,047,035.36 0.95
2009 1,911,535.44 -6.62
2010 1,967,967.84 2.95
C .Supply Analysis
Historical Values of the Supply of Cassava for the Past Ten Years
Year Supply %increase/decrease
2001 1,652,035.88 mt N/A
2002 1,625,738.73 mt -1.59
2003 1,622,241.72 mt -0.22
2004 1,640,519.58 mt 1.13
2005 1,677,563.82 mt 2.26
2006 1,756,856.13 mt 4.73
2007 1,871,137.81 mt 6.50
2008 1,941,574.59 mt 3.76
2009 2,043,719.41 mt 5.26
2010 2,101,454.16 mt 2.82
D. Demand-Supply Analysis
Year Demand Supply Gap
2001 1,852,371.51 1,652,035.88 200,335.63
2002 1,815,917.88 1,625,738.73 190,179.15
2003 1,784,489.5 1,622,241.72 162,247.78
2004 1,876,015.44 1,640,519.58 235,495.86
2005 1,890,347.76 1,677,563.82 212,783.94
2006 2,004,668.88 1,756,856.13 247,812.75
2007 2,027,685.84 1,871,137.81 156,548.03
2008 2,047,035.36 1,941,574.59 105,460.77
2009 1,911,535.44 2,043,719.41 -132,183.97
2010 1,967,967.84 2,101,454.16 -133,486.32
E. Price Analysis
The price will depend on the supply and demand of cassava. The higher
the demand, the lower the supply therefore the price is higher. The lower the
Competition is one of the factors that will affect the market. If there will
2. Season
Season depends upon the supply and demand of cassava. The lower the
The product which is cassava will be sold directly to the local market and
2. Proposed Price
The proposed price of cassava will be Php 7.00 per kilo. It is assumed to
be fixed from the first year until its fifth year of operation.
3. Product Management
Harvested cassava crop will be brought to the storage house for cleaning.
It will be placed in sacks and will be transported to the designated market outlets.
4. Distribution System
involve during the marketing process. The producer will be the one to deliver the
PRODUCER
JULU SAN MIGUEL
DCORPORATION
CHAPTER III
TECHNICAL FEASIBILITY
A. The Product
balanghoy. It is a perennial shrub which sometimes reaches the size of all small
trees. Its stems vary in color from pale to dirty white or brown marked by
numerous node formed by scar left by fallen leaves. Pale to dark green leaves are
fan-shaped with5 to 9 lobes. Roots of cassava plant are few and swallow and
some become storage roots, these are clustered around the base of the plant and
extent about 60 cm all sides. It is for this root which contain from 15% sparely.
This is cultivated under favourable condition. A single root may weigh as 4 kilos.
The number of root per plant at harvest varies from 2 to 7 each averaging 27 cm
roots are high in calories and leaves are good source of protein and vitamins A
The plant can grow in poor soil on marginal lands with minimal amount of
fertilizer, pesticides and water because the root can be harvested any time from 8
food shortage.
B .Product Process
1. Site selection
evenly distributed rainfall through the year. This study will select an open field
area with clay loam soil. The selected area will not prone to water logging. This
depends on the kind of soil and the intensity of weed population. In any case,
plow the soil to a depth at least 16 cm to provide good soil conditions of the root
mature and healthy stems. It is fresh when latex comes out within six seconds
after cutting. It is healthy when it is pest free and diameter of stem is not less
4. Planting
between rows with two seeds pieces/ hill and at a depth of 25 cm. Seed pieces
are laid out flat during the dry season, slanting during the rainy season.
5. Crop Protection
The cassava is infested with fish scale. The population of the pest will
increase rapidly causing yield losses reaching as high as 20%. The most
immediate form of control will be the use of chemical pesticides. However in this
minimal amount because this may result to a dangerous side effect to a node.
The cutting stored for more than 5 days will not be used anymore because it is
before harvest.
to control weeds. This cultivation may do two times during the first 30 days after
planting. Selective hand weeding in the furrows should also be done in the same
8. Fertilizer Application
9. Harvesting
to 3 days after harvest. This crop will be harvested at full maturity which will be
7 to 8 months after planting. It will not be harvested during heavy rain or when
soil is too wet. This is because roots will have high water content which will be
difficult to store. This may also result to low yield and poor eating quality. On the
other hand, leaving the roots long in the soil exposed them to pest.
PREPARATION OF
PLANTING PLANTING
MATERIALS
C. Project Area
The area is 1 hectare (10, 000) and it will be rented ₱18,000.00 per year.
D. Project Location
TO MATI TO TAGUM
THIS SITE
KNP
E. PLANT LAYOUT
50x70cm 50x70cm
F. Raw Materials and Supplies
5. Other
materials
Big Basket 30 Pcs. 50/pc - 1,500
Weighing 1 Pc. 12,500/pc - 12,500
scale
Total Cost 297, 400
H. Labor Requirements
Table 6
Particular
Fixed cost
Furniture’s 2,300
Variable cost
Electricity 10,000
FINANCIAL FEASIBILITY
A. Major Assumptions
1. Land rental will be fixed for five years at ₱18,000.00
2. Management fee will be fixed for five years at ₱180,000.00
3. Office supplies will be fixed for five years at ₱1,007.00
4. The area has a capacity of 26,666 hills in one hectare with spacing of
75cmx50cm.
5. Selling price of cassava root crop is ₱7.00 per kilo and it will be fixed for
operation.
8. Tax is 10 percent of the net income.
9. The maturity of cassava will star on its 8th month during the first year of
operation.
JM CASSAVA PRODUCTION
(Year1 to Year5)
Cash flow from Year1 Year2 Year3 Year4 Year5
operating activity
Net Income 181,723.5 455,728.5 461,128.5 461,938.5 462,708
Depreciation - 445.76 445.76 445.76 445.76
Net cash provided 181,723.5 456,174.26 461,574.26 462,384.26 463,153.76
by operating
activities
Cash flow from
investing activity
-Farm building 22,228.914 -
Net cash provided 22,228.814
by investing
activities
Cash from
financing activities
-investment 380,285.814
Loan 600,000
Loan repayment 120,000 120,000 120,000 120,000 120,000
Net cash provided
by financing 860,285.814
activity
Net income cash 1,019,780.5 367,174.26 341,574.26 342,384.26 343,153.76
Cash balance 0 1,019,780.5 1,335,954.76 1,697,529.02 2,039,913.28
beginning
Cash balance end 1,019,780.5 1,355,954.76 1,697,529.02 2,039,913.28 2,383,067.04
JM CASSAVA PRODUCTION
(Year1 to Year5)
Operating
Expenses
Tools and 11,150
Equipment
Materials and 297,400 12,400 12,400 12,400 12,400
supplies
Direct labor 246,200 246,200 246,200 246,200 246,200
Land rental 18,000 18,000 18,000 18,000 18,000
Administrative 180,000 180,000 180,000 180,000 180,000
salary
Expenses
Interest 150,000 144,000 138,000 137,000 136,000
Expense
Furniture’s 2,300 - - - -
Office supplies 1,007 1,007 1,007 1,007 1,007
Transportatio 12,000 12,000 12,000 12,000 12,000
n
Total 918,057 613,607 607,607 606,707 605,852
operating cost
Net income 201,915 506,365 512,365 513,265 514,120
before tax
Less:10% 20,191.5 50,636.5 51,236.5 51,326.5 51,412
income tax
Net 181,723.5 455,728.5 461,128.5 461,938.5 462,708
income/loss
JM CASSAVA PRODUCTION
(Year1 to Year5)
Asset
Total asset 1,042,009.314 1,377,737.814 1,718,866.314 2,060,876.814 2,403,584.814
Liability and
owners equity
Liabilities
-Loan 600,000 480,000 360,000 240,000 120,000
Loan 120,000 120,000 120,000 120,000 120,000
Repayment
Total liability 480,000 360,000 240,000 120,000 0
Owner’s equity
JM’s capital 380,285.814 562,009.314 1,017,737.814 1,478,866.314 1,940,804.814
Add: Net 181,723.5 455,728.5 461,128.5 461,938.5 462,708
income
Total owner’s 562,009.314 1,017,737.814 1,478,866.314 1,940,804.814 2,403,584.814
equity
Total owner’s 1,042,009.314 1,377,737.814 1,718,866.314 2,060,876.814 2,403,584.814
equity and
liabilities
Financial Analysis
= 404,645.4
1,075,940.814
= 0.38
(1+r) n
(1.14)1
Year 2 = 1,355,945.76 = 1,043,363.16
(1.14)2
(1.14)3
(1.14)4
(1.14)5
7
Year 5 = 605,852 = 86,550.29
The above shows the break even volume analysis, which depicts the
volume to be produced that can cover all cost but without gain and loss. The
result shows the output is greater than the break even volume through the year
Sales
1,119,932
1,119,972
1,119,972
Year 4 = 607,607 x 7 = 3.80
1,119,972
1,119,972
980,285.814
980,285.814
Year 4 = 461,938.5 = 0.47
980,285.814
Year 5 = 462,708 = 0.47
980,285.814
CHAPTER V
SOCIO-ECONOMIC STUDY
business and compute the taxes. For this, 10% of the total net income will be
paid annually, environmental clearance from the DENR and DTI permit are
secured.
The Cassava production can generate income not only on the part of the
business but also to those unemployed individual who certainly need job. They
can be hired as laborer in this project. The supplies of raw materials will also be
beneficial firm.
CHAPTER VI
A. Form or Ownership
The project consists of two owners. Since there are two owners then the
B. Organizational Chart
MANAGER
LABORER
serve as the initiator responsible for the improvement of the project. He will be
worker will only be hired during the preparation of the site in planting and during
harvesting period. The caretaker, on the other hand, will serve as the regular
worker in the project. They will be the one who will take care of the products
and in charge for the production so that the buyer will be satisfied of the
product.
REFERRENCES
Educational Background
(DJAS Campus)
Name: JAYSON N. JARON
EDUCATIONAL BACKGROUND
(DJAS Campus)