Rice Farming business

I.
SWOT ANALYIS
Strength
1. High Demand – rice is the major staple food by every household, restaurants and
hotels making the demand for rice continue to be high
2. Low cost production Technology
3. High yield – rice grows between 4-5 months unlike other crops that needs a year or
even a couple of year to harvest
4. Basic Human Necessity
Weakness
1. Disease and pest attack – disease and pest are what can affect rice faming like
birds, rats, snail…etc
2. Large labor force require for production
3. Requires a lot of water
Opportunities
1. Growing Demand
2. Product export facility
Threats
1. Natural disaster such as global warming, pollution, and drought that can greatly affect
the production of rice
2. Inflation
3. Rice importation from other countries – people have become used to the foreign rice
because it is cheaper than commercial rice.
VISSION
Our vision is to become one of the best and leading rice farming companies in
town as well as all through the nation.
MISSION
Our mission is to commercially produce and process rice under the best
conditions while maintaining the highest standards of quality recommended by the
relevant regulatory bodies
II. CUSTOMER DESCRIPTION
Rice is the most popular staple food and it used in many different ways. This
makes it a very important area of investment among investors such as rice farming.
Rice farming is very common and popular throughout the world. Rice can be grown in
many ways. Some varieties demand little water, but others require
irrigation. Some require extensive application of fertilizer and others require little.
Tagudin could be a great spot for this business beacuse this town is a agricultural-
based economy and it is know for its wide plantation of different crops like rice, corn and
etc.
III. COMPETITORS
A. Darren Farm Supply
Is a business located at Dardarat, Tagudin along the national highway. It sells farm
supplies such as animal foods, food supplements for pig and chicken, and also various
brand of commercial rice.
Their stall is easy to access and sell their goods at fair price points. There is also a
cockpit arena nearby and operates only at Sundays. It is very popular that people
across different towns and barangays come to watch the fight. Arena goers and
travelers find it more convenient to drop by to their stall instead of going to the market to
buy animal necessities before heading back home.
Its location is both its strength and weakness. Unlike other stalls within the town
locale, they receive fewer customers because the foot traffic in the area is far lesser
compare to the foot traffic in the public market may it be weekends or weekdays.

IV. PRODUCTS AND SERVICES

Our product will be the production of rice and selling of various farm supplies.
Apart from that, our business interests will also include rice mill where the produced rice
will be processed and well packed for domestic and international consumption. Other
services will also be offered such as rice farming, processing, and proper packaging
lessons and seminars to our dear farmers and aspiring entrepreneurs.
V. LOCATION
The location of our rice farm is in Libtong Tagudin Ilocos Sur and is 50 meters
away from factories and other facilities that might contaminate the land and the
products. And also the land has a good amount of clay and organic matter that has the
capacity to retain water to avoid extreme drought.
The storage facility where we store rice during the drying period can be located
inside or outside the farm wherein it is sealed enough to protect and secure stored rice
from moisture which could damage the product and thievery as well.
 The physical store where we sold the products is located on Yellow market,
Tagudin Ilocos Sur because this is where people buy their needs and wants. So it is
expected that a lot of people will know your products and soon patronize it.

VI. CAPITALIZATION AND START-UP EXPENSES

Capitalization
Some of the major areas where we intend to source for loans include:
• Personal savings
• Applying for loan from a commercial bank
Start-Up Expenses
• Business registration and incorporation fees
• Obtaining licenses and permits
• Insurance (equipment, vehicle, and workers’ compensation as well as general
liability)
• Rent and renovation of facility for operation and storage facilities for at least one
year
• Cost of hiring labor (farmers)
• Purchase of furniture and gadgets (storage facilities) for administrative section
• Cost of equipment (seeds, land, fertilizers)
II. MICHAEL PORTER’S ANALYSIS
A. Threat of New Entrant

1. Metro Bank (Banking Industry)

New entrants in Banks brings innovation, new ways of doing things and put
pressure on Metro Bank through lower pricing strategy, reducing costs, and
providing new value propositions to the customers. Metro Bank has to manage all
these challenges and build effective barriers to safeguard its competitive edge.
2. Javier Trading Corporation Mall (Consumer Products)