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A TECHNOPRENEURSHIP STUDY ON RICOTTA CHEESE

IN LOS BAÑOS, LAGUNA

A Special Problem Report submitted in partial fulfilment of the requirements for


graduation with a degree of Bachelor of Science in Agribusiness Management from the
College of Economics and Management, University of the Philippines Los Baños,
College Laguna, Philippines, First Semester 2010-2011. Prepared under the supervision
of Prof. Nanette Abelilla-Aquino.

PAULINE CARMEL JOY C. EJE

INTRODUCTION

Filipinos are known to eat five times a day and has the tendency to have snacks in

between meals. Some favourite snacks include burgers, pizza and sandwiches which

drive the growth of the country’s cheese consumption.

According to the US Department of Agriculture, 8000 tons of cheese including

both imported and locally processed, are consumed by the Filipinos in 2006. Many of

these include home-based production of traditional cheeses like kesong puti or cottage

cheese. However the consumption of the Filipinos is still low compared to other

countries. Nevertheless, it can be noted that the cheese consumption of the Philippines

along with other Asian countries like Japan and South Korea are rapidly growing.

Globally, it is forecasted that the growth on cheese consumption is 2% annually,

and the largest potential growth is still in the main importing regions of Asia including

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the Philippines wherein local production cannot catch up with the growth of

consumption. This entails the need for the country’s dairy industry to improve and go

into local cheese productions so as to share with the chunk of profit earning ventures in

the industry.

In April 19-May 8 this year, several interested students along with State

Universities and Colleges (SUCs), technology developers and UPLB faculty and staff

have undergone a training sponsored by the Agriculture, Forestry and Natural Resources

(AFNR) program. The program’s purpose is to promote technopreneurship in the

University of the Philippines Los Baños. The university is known to have a long list of

technologies developed every year. As seen by the AFNR Program, these technologies

can be a good source of profit if properly used and marketed. Thus, they conduct the

short-course training to help the university utilize the technologies and at the same time

earn, through business start-ups to be conducted by the participants.

Eventually the technopreneur of this study was one among the interested students

who went through the training and was now on the process of starting up a business for

the commercialization of the Ricotta Cheese as developed under the supervision of

DTRI-UPLB, with proper guidance of Professor Olivia C. Emata, head of Dairy Products

and Technology Development Division of the ADSC-UPLB. The technopreneur got

interested with the training as she has experienced having small business experiences in

her high school years. Also, her topic for the Special Problem was supposed to be about

whey, the by-product of cheese making. But then, the idea of starting up a business

utilizing the technology of UPLB encouraged her more, and thus resulted to the start of

this study.

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Significance of the Study

This study is about the actual experience of the student on conducting a start-up of

a technology-based business. This is an immersion activity that introduced the student to

the actual operations of the business start-up. These experiences of taking actual

decisions on a real business set-up let the student learn to apply and properly strategize

on solving the problems dealing with the basic functions of the business.

This may also be a helpful tool not only to DTRI but also to the existing and

would-be technopreneurs involved in production of dairy products through input of new

ideas about the new consumer concepts that this study will be generating.

Objectives of the Technopreneurship Study

The general objective of the study is to document a technopreneurial start-up

experience and reflect on the insights gained from such experience.

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Specifically, the study aims to:

1. Present a business plan for the Ricotta Cheese enterprise;

2. Describe the processes in setting up and starting a technology-based business;

3. Present the start-up problems and issues encountered in starting a techno-

venture;

4. To assess the initial performance of the start-up;

5. Reflect on the knowledge, skills, values, work ethics, and insights

gained/developed from the start-up experience; and

6. Come up with courses of actions for the implementation of the business plan,

the enterprise, and the AFNR Program, and to identify investment and development

entry points for potential stakeholders in technology-based enterprises.

Scope and Limitations

The study is limited by the available resources of the technopreneur, especially in

the production runs wherein the marketing and other areas of the study are dependent on.

Also, the location of marketing is still limited to Los Baños, Laguna due to the limited

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finances the technopreneur has. The yield of the production runs also is a constraint to the

marketing of the product as it has no fixed volume. Ricotta is not known to the

consumers yet, that is why there is a need for product samples for taste tests and a brief

introduction of the product to them as well.

Production runs are also highly dependent on the working capital available to the

technopreneur, thus it inhibits the growth of the enterprise whenever there is not enough

cash on hand.

Definition of Terms

Ricotta - a soft Italian cheese that resembles cottage cheese

Curd - a substance consisting mainly of casein and the like, obtained from milk by
coagulation, and used as food or made into cheese.

Rennet - a preparation or extract of the rennet membrane, used to curdle milk, as in


making cheese.

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Whey - a milk serum, separating as liquid from the curd after coagulation, as in cheese
making.

Other types of cheeses mentioned:

➢ Edam Cheese - a mild, hard, yellow cheese produced in a round shape


and coated with red wax.
➢ Blue Cheese - a rich cheese in which the internal mold manifests itself in
blue veins: made in France esp. from sheep's milk and elsewhere also from
cow's milk and goat's milk.
➢ Cream Cheese - a soft, white, smooth-textured, unripened, spreadable
cheese made of sweet milk and sometimes cream.
➢ Cottage Cheese - an extremely soft, or loose, white, mild-flavored cheese
made from skim-milk curds, usually without rennet.
➢ Parmesan Cheese - a hard, dry variety of Italian cheese made from skim
milk usually grated and sprinkled over pasta dishes and soups.

Background of the Technopreneurship Student

The technopreneur of this study, Pauline Carmel Joy Eje does not really have a

formal entrepreneurial background from the family she grew up in. Her family, however,

has been transferring to different barangays in her place of birth, Calapan City, as far as

she can remember with her childhood days. This was said to be one of the sources of

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ideas for entrepreneurial activities of many. During their transferring of residency, her

family easily copes up with the community and had good relationship with the

neighbours. She has been a witness to her parents’ sidelines along with their teaching

career, in order to raise the four children of the family well. Her mother has been a dealer

of Tupperware and for some time beauty products from Avon and Christmas light during

its season. This did not really occur deep in the technopreneur’s mind as she was aspiring

to become teacher like her parents during this time. She just realized that these observed

activities had an effect on her during the star-up of this venture.

She spent her elementary and secondary years at the city’s pilot schools. It was

when she was in her 4th year in high school when she got interested to being an

entrepreneur. Using her own allowance and some of her earned money as capital, she

ventured into selling biscuits, pad papers, candies and chocolates to her classmates little

by little, and these made her popular in the class, as well as in the adjacent classrooms to

her homeroom. At first, she was hindered by the school rules regarding the utilization of

the school canteen. But then, her homeroom adviser, upon learning about her venture,

allowed and further encouraged her to continue it. Her classmates preferred to buy from

her most of the time, since they do not have to go to the school canteen which was a bit

far from the classrooms. Also, she accepts suggestions as to what will be the other

products she can offer in class. This further improved her profits given the fact that the

customers really like the product. She just used some simple computations to realize her

profits from her ventures, and the thought of earning from these really encourages her to

own a business in the future.

During one of her trip to Manila to take a college entrance examination, she was

given a chance to have a trip to Divisoria for the first time. Upon seeing some products

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that will help in making some of the requirements in class like stencils and stickers,

which she knew were not available in the school supply stores near the school, she

invested some of her pocket money in wholesale buying of these stuffs. Eventually, she

did receive a good sum of money from it.

Her selling experiences during her 4th year in high school gave her the idea of

taking a course that has something to do with businesses, and thus led her to taking up

B.S. Agribusiness Management at the University of the Philippines Los Baños. At first,

she was tempted to take up Nursing, which was the trend during those times, for college,

but the idea of having a business of her own encouraged her more. Her family’s support

also helped her to decide in choosing this course.

Her experiences in her ventures were not always successful though. During her 2nd

year in college, she had the chance to experience electronic load retailing, which she

found not the business for her. She had a hard time with maintaining her capital since her

customers were mainly roommates, dorm mates, classmates and other friends. They tend

to text her whenever they need load. She experienced difficulty in collecting for the

payments, which she should have used for the next load she will use for retail.

Eventually she stopped this business and went into being employed as a tutor of a

Grade 2 student and a student assistant to a professor in the university. This time, it was a

very different experience. Providing service is not as challenging as providing tangible

products to customers. There was no concrete gauge as to the effectiveness of the tutorial

service as well as the assistance given to the professor. However, it was demanding more

time than her previous experiences in business. Also, her eagerness to decide or innovate

on things was being limited by being employed. Thus, she was further persuaded to have

a business of her own in the future.

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In the summer of 2010, she was given the chance to be a part of the short course

offered by the Agriculture, Forestry and Natural Resources (AFNR) together with

Department of Agribusiness Management, wherein students, State Universities and

Colleges (SUCs) and some technology developers became participants.

She became interested with the technopreneurship study, a newly offered type of

Special Problem, that’s why she was able to come up with this study.

OVERVIEW OF THE PRODUCT / INDUSTRY

Dairy Industry

According to the U.S. Department of Agriculture, the top five largest export

countries for dairy products are Mexico, Canada, Japan, China and Philippines. Mexico

imports all their dairy products and is still expected to rise due to their demand for

processing inputs, and demand from tourism and retail sectors. Canada and Japan, on the

other hand, depends on the U.S. for their imports and exports of dairy products. Also,

China has U.S. as its second largest dairy supplier.

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The Philippines, which has only 1% domestic production supply and its demand

is also seen to have high dependence on the U.S. and other countries for imports of dairy

products (International Dairy Food Association, 2004).

The top three exporting countries in the Philippines in 2008 were New Zealand,

United States and Australia. Forty-two percent of the imports came from New Zealand,

18% from United States and 15 % from Australia. Nestle Philippines alone, accounted for

more than half of the country’s milk imports (NDA, 2008).

One factor for high imports is the very low cost of tariff imposed on imported

milk. Also, importation is needed by the country due to the low volume of local supply

which could not address the whole country’s demand for milk. There is seen to be a

continuous increase in the number of institutional buyers and distributors of local fresh

milk, coffee shops serving fresh milk and milk booths at the malls.

Local dairy farmers, with the help of the government through the National Dairy

Authority were given the chance to own the milking cows, which the NDA imported

from other countries. This increased the population of dairy animals as well as the milk

supply in the country. Ultimately, this opportunity gave life to the dairy industry in the

Philippines.

With the continued support from the government, the dairy industry in the country

grew and actively helped in the economy. It also gave opportunity to those who had the

resources to participate this industry.

Cheese Industry

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According to history, in 400 A.D., the Dutch has started producing and this

activity has been improved along with the progress in the cattle breeding improved, and

has been further passed on across countries making cheese a popular food product.

In the Philippines, the history of cheese production cannot be traced. The country

has locally produced cheeses, but still the company has to import cheese from the major

producers in the world. New Zealand is the top supplier of processed cheese to the

Philippines. Australia and the United States are also key sources. Competition has greatly

intensified among the major players, especially coming from the European Union which

has been posting a growing market share (Figure 1).

Figure 1. Philippine Major Suppliers of Processed Cheese, 2008

Source: National Statistics Office, Philippines

Most households consume cheddar cheese and processed cheese, while

institutional buyers prefer mozzarella (for pizza), parmesan (for pasta) and processed

cheese (for food preparations). The Edam cheese, known to Filipinos as keso de bola, is

highly saleable during the Christmas season. Cream cheese, on the other hand, is known

for being a spreadable type and is commonly incorporated with breads and bagels. There

are still many other types of imported cheese available in the supermarkets (Table 1).

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Table 1. Imported Cheese Brands By Country of Origin
Cheese Type Brand Country of Origin
Singles Bega, Lemnos, Millel Romano Australia
Happy Cow Austria
Arla Danish Emmental Denmark
La vache qui rit, President, Welcome France
Land O'Lakes USA
Cowhead Singapore
Anchor New Zealand
Coon Australia
Cut-up Emborg Austria
Babybel, Bonjour de France, Elle&Vire,
Entre mont, Kiri chef France
Frico Holland
Garcia Baquero Spain
Bouton dor New Zealand
Australian Gold Australia
Millel, Denmark's Finest, Puck,
Rosenborg, Arla Denmark
Mainland New Zealand
Coon Australia
Frico Holland
Eight portions circle Happy Cow, Emborg Austria
Buko, Miss delissy Denmark

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La vache qui rit France
Flavored Cheese Mama Lucia Australia
Mozzarella Coon Australia
Arla Denmark
Perfect Italiano, Millel Australia
Parmesan Marca Piña, Old Fashioned Foods,
Kraft, Chianti USA
Spreadable Puck Denmark
Lemnos Australia

Source: Supermarket survey, May 2008

Generally, natural and processed cheeses are two categories of cheese. Natural

cheese is one that is made from milk or skim milk, in contrast to processed cheese, cheese

spread and the like. Cheese is one of the most versatile and nutritious food. It is most

frequently used by homemakers in meal planning and preparation. It is typically used for

sandwiches and appetizers, and can be grated as toppings on soups, spaghetti and pizza.

From the simple consumption to growing into a larger and more complex market,

the Philippine cheese market has evolved over the years. This is supported by the wide

variety of product offerings in the market—from the low-priced long shelf spreads to

specialty cheese for the food industry and food services.

The country’s double income households highly support the purchasing power of

Filipinos for cheese products. It resulted to the increase of Filipinos preference for dining

out, food delivery and purchases of convenient easy to prepare foods. This can further be

observed in the proliferation of fast food chains, coffee shops, take out counters and food

deliveries nowadays.

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For local players in the industry, it has been observed that the tactic of using

smaller pack sizes is becoming effective as it encourages more users, considering that

Filipinos, while brand conscious, are also price sensitive. Even the popular brands, which

are commonly from other countries, have adopted this scheme and thus making their

products more saleable. The small-pack strategy is most likely the major factor driving

value growth among local manufacturers since it encourages more frequent and less-felt

purchases among consumers.

To complement the smaller pack sizes, companies have set their sights on small

but numerous traditional retail outlets, particularly sari-sari stores which highly offer

convenience along with the affordability for the buying experience of the end-consumers.

In the global market, it is forecasted that the consumption of cheese will be

growing by 2% annually ad this is a great news to importers as well as local players.

There is a very high potential for growth as the main importing regions in Asia, including

the Philippines, where local production cannot cope up with the growth in consumption.

Whey

Whey is a by-product of cheese making. It is formed when the curds separate

from the milk or cream. After the cheese curds are formed, the remaining liquid is called

whey. This liquid is watery and thin. Sometimes whey has a tinge of bluish color, but this

depends on the quality and type of milk used.

Whey is an excellent source of protein, vitamins, minerals, and lactose. It is the

base of many protein drinks for athletes or others wishing to build or repair muscle

tissues. Whey is also an important supplement for those who have limited mobility in the

limbs, as it contributes to the prevention of atrophy of muscular cells. It is also used in

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pet foods as a source of protein and fats. It contributes to a healthy coat and proper

muscle development.

In the United States, whey is causing a problem in their waste disposal facilities.

Of the 14 billion kilograms of whey produced in 1973, only 6.9 billion kilograms has

been reprocessed, while most of the other 7 billion kilograms were disposed off as waste.

As a result, cheese manufacturers as well as dairy scientists and the dairy industry

have been put under pressure once again to stop dumping whey into streams and

municipal sewage systems, due to growing concern over pollution and environmental

control. Thus, researches are done to come up with a way to utilize, rather than throw off

this by-product. The most logical use then would be to return the whey to the human food

chain in a palatable form, in the light of growing global food shortages (Holsinger et. al.).

Whey has been seen a simple by-product of food manufacturers, particularly

cheese manufacturers, for a long time already. But nowadays, whey industry is a

promising venture as it increasingly taps into the potential health and functional benefits

of the protein (Holsinger, et. al.).

Ricotta

Technically, ricotta is not a cheese at all, but a cheese by-product. Its name,

ricotta, means cooked again, an obvious reference to the production method used to make

it. Ricotta is made from the whey drained from such cheeses as mozzarella, provolone,

and other cheeses. It is a fresh, soft, snowy white cheese with a rich but mild, slightly

sweet flavor. The texture is much like a grainy, thick sour cream. Ricotta is naturally low

in fat, with a fat content ranging from 4 to 10 percent. It is also low in salt, even lower

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than cottage cheese. Since ricotta is made primarily from lactose-rich whey, it should be

avoided by those who are lactose-intolerant (http://homecooking.about.com).

Ricotta is a favourite ingredient to Italian desserts such as cheesecakes and

cannoli. In many different Italian desserts, ricotta is also incorporated to chocolate

shavings, cinnamon, sugar, honey and orange flower water. Commonly, it is used in

savory dishes, including manicotti, lasagna, and ravioli (APPENDIX 4). Recipes can be

easily downloaded from the internet for every interested individual and these helps the

increasing marketing efforts for ricotta (APPENDIX 8).

The Italian way of producing the ricotta is said to have the better taste and quality

as it is originally made from whey. The acidity gained at the start of the production, as

well as the whey’s composition from the previous cheese making process, contributes to

the distinct taste of it. On the other hand, the American ricotta which is commonly made

from raw or whole milk has a mildly sweet taste.

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BUSINESS PLAN

The Product

The venture is going to provide the market with Ricotta Cheese made from whey

or a probable substitute, the raw milk from cow, the by-product of cheese making. It is

not a new type of cheese, but is not yet known to the Philippine market due to very low

production because of the very low yield per production. Ricotta cheese is known to have

high protein content, basically from whey, and has lower fat and salt content as compared

to other types of cheese.

Strictly speaking, Ricotta is not a cheese but rather a by-product of cheese

making, obtained from gently reheating of the leftover whey until soft curds are formed

from its residual proteins, sometimes with a little milk added. The curds are then drained,

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and the delicious, white, fluffy stuff what’s left is ricotta, which actually means “to cook

again”, that is obvious in the process of coming up with the product. Moreover, ricotta

has the added bonus of being relatively low in fat, at only about 4-10 percent.

The precipitation of the curd is caused by the heat treatment, combined with the

effect of the acidity. Also, being exposed to a high temperature of about 90-95 degree

Celsius, results in the denaturation and disulfide bonding of some of the whey proteins,

particularly b-lacto globulin. The curd formed is composed of both casein and whey

proteins, unlike the usual curd which is mainly casein. Ricotta’s textural properties also

differ from the other cheeses that makes use of rennet to form the curds, since it is loosely

aggregated and entraps air, giving the curd a relatively low density making it float on top

of the cheese vat, that is a property characteristic of ricotta cheese making. It is necessary

to ensure that the curd floats and do not sink with the proper control of the pH and the

level of the agitation. After collecting the curds, it is then allowed to drain in the

refrigerator, and afterwards, it is ready for consumption. It has a high moisture content

and fairly high final pH, and accordingly a short shelf life. Inclusion of the whey proteins

into the curd results in both a high protein yield and high protein quality for ricotta

cheese. To add sensory appeal, mild flavor, and nutritional value to foods, ricotta cheese

is used as an ingredient. Both part skim and whole milk versions of ricotta cheese provide

a source of calcium, phosphorus, zinc, riboflavin, vitamin A and vitamin B12 in each

serving. Ricotta cheese is a soft and creamy cheese with a light texture and mild, slightly

sweet flavor, with its color, commonly off white (University of Guelph’s Dairy Science

and Technology).

In the United States, ricotta is generally made with a combination of whey and

whole, low-fat, or skim cow's milk

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(http://homecooking.about.com/cs/cheeseinformation/a/ricotta.htm). Adding skim milk

powder can also be done to further lower the price of production of ricotta, without

compromising the nutritional value of it, however, for quality’s sake, the technopreneur

does not want to resort to this activity.

This product will be produced with the assistance and support from Dairy

Training and Research Institute-UPLB.

The Market

It is the technopreneur’s aim to tap the potential institutional buyers in Los Baños,

Laguna, that includes coffee shops, restaurants and hotels. However, the technopreneur is

not limited to selling to this segment alone. The product can also be sold to individuals

who are health conscious or those who are fond of cooking, particularly Italian dishes and

pastries. The scope of marketing is still limited to the Los Baños market since the

production is still being adjusted to the yield for this type of cheese production.

Product Value

The venture is going to provide the market with a high quality Ricotta Cheese

made from 100% cow’s milk, and is made to cater the institutional buyers as well as the

individual customers. This is a movement away from the traditional way of producing

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ricotta from whey because of the unavailability of the source of whey and its very low

yield that may not cause the venture not to be profitable.

Ricotta is a highly perishable product and has a safe assumption of seven days

shelf-life only, thus the products will be made fresh and delivered to the customers every

after the production process. This will ensure the quality of the product up to the end

consumers. In addition, the product has no preservatives added to ensure a product with

consistent quality and that is highly nutritious.

Logistics and Sourcing of Raw Materials

There is a high demand for raw milk as well as the processed milk in Los Baños,

Laguna due to the budding white cheese processors from the area as well as nearby towns

and its visitors. This causes uncertainty in the supply of milk for every processor, thus,

the technopreneur decided to situate her processing plant in Lamot 2, Calauan, Laguna

where there is a more stable supply of raw milk, the Katipunan ng Kooperatibang

Maggagatas, Ink. (KKMI) and Hacienda Macalauan known to be located in the area.

The technopreneur took advantage of the reduced cost of placing the production

area near the source of raw materials. Cow’s milk is a bulky raw material, and thus the

reason why the technopreneur decided to choose the location. This will be realized best

when the production is at full blast, having up to 50 litres of milk per production.

KKMI, the current primary source of the raw milk for ricotta production is having

a daily excess of supply from the farmers, which can be bought by walk-in customers,

and such is the set-up for the technopreneur at present. There is no fixed set of orders

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placed by the technopreneur, since there is no consistent production yet. But, it is

expected to be a better way to have a sure reservation for the supply of milk from the

company, to avoid the problems caused by sudden loss of supply.

Other raw materials like salt and anhydrous acetic acid are obtained from the

supermarket and Nikolai Enterprises respectively. The order for anhydrous citric acid is

needed to be placed one week before the production date so as to receive the ingredient

on time for production. This is because the management of Nikolai still has to purchase it

from Manila.

Business Model

Processin
g Area for
Ricotta
productio
n

Suppliers
BIOTECH (Toll
of
Process
Whey for
(KKMI)
ricotta
collection)

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Packagin
Institution
galatBuyers
DTRI
(Toll
Process)

Funding
End
Consumer
from
PCASTRD,
s
UPLB &
PCARRD-
DOST

Figure 2. Business Model of Ricotta Cheese (for business plan last summer 2010).

The technopreneur currently had a tie-up with a medium sized dairy products

distributor and cheese maker, the KKMI, to ensure the supply of the raw material for

ricotta production. This will then be transported to the production area to be acidified and

then cooked. In the view of low yield in the ricotta production, it can be a better way to

collect the ricotta with the use of an evaporator in BIOTECH, to reduce the losses in the

collection. For the packaging, it will be toll processed at DTRI, UPLB. The institutional

buyers including restaurants, hotels and pastry shops will then be the main market of the

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ricotta. There is a need for the market to be made ready prior to the production so that

they can at once receive the product made and avoid losses as well. It is a critical thing in

this venture since the product has a short shelf-life, about one to two weeks. In the long

run, ricotta will also be made available for individuals who are into preparing delicacies

that makes use of ricotta. The institutional buyers will then be the ones to add more value

by adding it to delicacies that will be made available to end consumers.

Market Entry and Growth Strategy

It is a big challenge for this venture to enter the market since Ricotta will be

newly mass produced in the Los Baños market. Intense marketing should be applied to

make the product known to the market. Marketing in social networking sites are helpful

and costs less (APPENDIX 5&6). This is a good start based on the technopreneur’s

preliminary marketing done on May 2, 2010. Some friends showed interest on the new

product and would like to try it already. Also, a friend of the technopreneur was able to

taste the trial production on May 5, 2010. With this, she was able to let her officemates

know of the upcoming start up of the business, and thus means a sure market for the

technopreneur. Word of mouth may also be a good way of marketing. It is then critical to

maintain the quality of the product so as to ensure the chance of buying and repeat orders

of the market. The product’s quality is measured by its consistency and taste. Growth is

expected to follow as the quality of the product is standardized and thus gaining a lot of

new and repeat customers.

The formal start-up occurred in July 2010 when the initial investment from the

technopreneur’s parents is received. Her parents allowed the technopreneur to borrow

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10,000php at first then 2,500php within the semester taking into consideration the need

for her to finish her studies this semester. They are willing to lend her the money also for

the fact that they are supporting her on her business ideas.

Market Research and Analysis

Market Definition

The main market for this product was the institutional buyers in Los Baños,

Laguna. These were the restaurants, pastry shops and other similar ventures that has

cooking or baking among its processes. It includes Bonitos, Micha’s Pastry Shop,

Faustina, Black & Brew, and Boston Cafe. They were seen to be the potential users of the

product since they were the ones who further add value to their products before selling it

to the end consumers. Given the ricotta is a health food, with lower fat and salt content

than that of the cottage cheese, its nearest resemblance, it is positioned together with the

other high-end cheese.

Among institutional buyers, the main target market of the enterprise was the

restaurants and other shops that are into cooking high-end foods especially Italian dishes.

Among the end consumers, the main targets are those who are health conscious since this

was one of the important attribute of consuming ricotta cheese.

Research Methodology

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Ricotta Cheese is a new product in the Los Baños market that is why there is a

need for an initial market study to know the acceptability of the product.

First, store check was done to know how the product is positioned in the market.

Results showed that ricotta is not available in the Los Baños supermarkets and groceries.

DTRI-UPLB, however, is producing a very small amount of ricotta, mainly due to the

very small yield of 1 to 3% every production if the main raw material used was whey

from manufacturing other types of cheeses like mozzarella and white cheese. Production

of ricotta utilizing cow’s milk is then considered for the improvement of production as

well as the profitability of the venture.

Ricotta cheese is unavailable in the Los Baños market. It is only in specialty

cheese’s stores, hotels and restaurants in Manila that the Hacienda Macalauan distribute

their specialty cheeses like ricotta, mascarpone and mozzarella.

Competitor Analysis

The only direct competitor identified from the store check done, was Hacienda

Macalauan. It is a dairy farm and processing company found in Calauan, Laguna. Gatas

Tisoy is the brand mainly used for the product lines the Hacienda Macalauan has. This

company focuses on producing milk and milk products which are mainly produced for

the institutional buyers including coffee shops, hotels and restaurants.

Hacienda Macalauan offers milk products that are processed in its own plant

source, its raw milk from its own milking cows whose breed is Australian Freshian

Sahiwals. Among the product lines of the company are fresh milk, low fat milk, non-fat

milk, chocolate milk, white cheese, ricotta cheese, cottage cheese, low fat yoghurt, non-

25
fat yoghurt, full cream yoghurt, flavoured yoghurt, sour cream, whipping cream and

liquid cream. Their ricotta cheese is packed in cups of 200grams or in 1 kilogram, and

costs 80pesos and 400pesos respectively, if bought by walk-in customers at their plant at

Calauan, Laguna. However, if the product is purchased at their distribution outlets, the

price is given at 90 to 100 pesos.

Hacienda Macalauan’s label for its products includes the company’s name and

logo. The logo is a picture of three Australian Freshian Sahiwals in a green pastureland

(Figure 3). The label in some products contains the weight or volume of the products and

the other products offered by the company. The expiration date for every item is always

included in the label to ensure the safe consumption of the products by the consumers.

Ricotta is one of their products and is produced only upon receiving orders from

the customers, due to the product’s very short shelf-life of one week, as compared to

other products’ shelf-life of two weeks to a month. Sometimes, Hacienda Macalauan’s

ricotta cheese is available for walk-in customers in their main plant at Calauan, Laguna.

26
Figure 3. Ricotta Cheese of Hacienda Macalauan

There are however many other competitors for Ricotta cheese. One direct

substitute for this product is the cottage cheese. Cottage cheese has the nearest

resemblance to Ricotta cheese in terms of physical characteristics. It also has the same

use and is also readily available in supermarkets under the brand name of Nestlé. The

technopreneur found it a challenge to compete in terms of positioning the product. The

two has almost the same use and users, thus Ricotta cheese, not being readily available in

supermarkets when needed, can be easily replaced by Cottage cheese. However, in terms

of health benefits, Ricotta cheese is said to have lesser salt and fat content than the

Cottage cheese, making it still the better choice.

Aside from Cottage cheese, the other types of cheeses like processed cheese,

Parmesan, Mozzarella and Cheddar cheese are also substitute to the Ricotta cheese. These

can be also used as cheeses for pasta-based delicacies. They are also readily available in

the market and can be bought at reasonable prices.

27
The technopreneur considered two components that highly affect the current

position of the ricotta cheese at present. These two were the price and the availability of

the product. Consumers highly value these two and find it the main reason to change

preferences. The availability is a critical thing for the cheeses since the product can be

easily replaced when unavailable making the brand inferior to others.

Hacienda Macalauan’s ricotta cheese, being the direct competitor for Dairy

Land’s ricotta cheese has higher price when placed in distribution outlets and is less

available because the ricotta cheese they produce is only available in Manila distribution

outlets or at their plant at Calauan, Laguna. For the market of ricotta cheese in Los

Baños, Dairy Land’s ricotta cheese can be more affordable and available for use.

Figure 4. Product Space Map of Ricotta Cheese Brand based on Availability and
Price.

Market Size

The technopreneur started marketing the ricotta cheese to individual users. They

exhibited their eagerness with the product and told the technopreneur about their interest

to buy as soon as the product is available for sale. The technopreneur was able to

interview five individuals who have already used the product and a group of fifteen who

have heard about ricotta for the first time.

28
The group of fifteen individuals were composed of mothers working in an office

in IRRI and young professionals working in Los Baños. They may have been attracted to

the new product they have heard, that is why they were willing to try it. With this

premise, the technopreneur bear in mind that these individuals’ first impression of the

product will last and will be the basis of their future demand for ricotta. Thus, the

production to occur in early October must be primed properly so as to have the first

impression that will lead to repeat consumption of ricotta.

For the group that has been using ricotta already, they are interested for the

product, given that they have knowledge of recipes to which the product can be used. The

group is composed of three professionals who have finished studying in courses related to

culinary arts while the other two learned about the product in a restaurant where they had

their practicum. The technopreneur learned from this group that a certain recipe that will

be prepared for around eight people, demands the use of one cup of ricotta cheese, which

was approximately amounting to 200grams per recipe. Also, the said group used ricotta

frequently, and with this, the technopreneur found a new target market for ricotta, those

that have background on cooking and baking activities.

Computing for the estimated demand, from this group of five individuals having

the demand for ricotta, there can be roughly 200 to 300 grams of ricotta to be used by

each individual per instance.

Upon conducting informant interview, the target market that was composed of a

group of coffee shops, restaurants and pastry shops in Los Baños, were found to be non-

users of ricotta cheese. They have heard about it, but they are not using it because of its

unavailability in the market. The technopreneur then tried to describe the product to them

29
and told them the use of ricotta, but only one prospect institutional buyers showed

eagerness to try the product. The others, even though they are offering menus with which

ricotta can be used, opt to stick with their current recipe.

The institutional buyers already have their set of recipes which they offer for sale

to their customers and this entails their preference for an existing brand. Introducing them

the ricotta cheese becomes difficult as they are already hesitant to try new ones, not

knowing what to use it for. This is the big challenge found by the technopreneur and will

then be the main focus of this venture since they will direct the progress of this venture.

The technopreneur, however, was not very discouraged with this response as she

plans to continue seeking for institutional buyers outside Los Baños, when the production

is more stable.

Market Strategy

It is important to have a sure market in this venture due to the short shelf-life of

ricotta. This will be made possible by going into a contract with the institutions and areas

for distribution. This will reduce spoilage of the product and ensure the continuous

processing of the product. It will be helpful to go into marketing in the social networking

sites as well. It will be a cheap but a possible source of other end users of the product.

Upon applying preliminary marketing strategy last summer on the social networking

sites, the technopreneur was able to gain about twenty individual buyers. As for the

30
institutional buyers, the technopreneur had difficulty as to convincing them to use ricotta

since they have been existing and preparing their menus for more than a year already and

has their fixed recipe already. Only one prospect institutional buyers showed eagerness to

try the ricotta cheese on their food preparations.

This was seen to be a challenge to the technopreneur regarding how she will

convince these institutional buyers in utilizing the product. As a response to this she

prepared a brochure to be distributed to the other untapped institutional buyers, and a set

of recipes that customers can easily prepare using the ricotta cheese. In the brochure, the

technopreneur included the meaning of ricotta, its uses, its origin, and a “did you know?”

part telling a fact about cow’s milk. With these materials, the technopreneur believes that

there will be better knowledge of the product and this will give them the urge to try the

product and try the recipes on their own. This brochure can be passed on to other people

and can then be a medium of marketing to others as well. Posters will also be posted in

dairy products distributors’ areas so as to make the market aware of the product. Also, the

distributors of dairy products can also be asked if the technopreneur can sell ricotta

cheese along with their line of products as soon as the product can be sold to its target

market. The social networking sites are also means for the increase in awareness of the

product’s users. The technopreneur made a move already by utilizing Facebook as well as

Yahoo Mail in order to tap some of her friends who belong to the target market for the

product. This will further be used as the main marketing avenue as the number of

consumers for the product increases.

Competitive Strategy

31
It is known that the ricotta production has a low yield in its production. However,

the use of The National Institute of Molecular Biology and Biotechnology (BIOTECH)’s

evaporator may enhance the yield and thus increase the ricotta produced. This will then

sustain the market’s need for the product. Also, a tie-up with large cheese manufacturing

companies will aid the need for the whey as a raw material.

There is also an opportunity to learn the process of producing ricotta with the use

of milk combined with whey, in such a way that the venture will not be dependent on one

raw material alone. This may then result also to adding other sources of income, like

producing other types of cheeses, through backward integration.

Competitive Advantage

Ricotta makes use of whey, the by-product of cheese making as its main raw

material. This made it a lot cheaper and easier to produce than other cheese products.

Ricotta can be produced and packaged within 12 hours, unlike that of the cream cheese

production which takes about two days of processing up to packaging. Also, starting-up a

ricotta cheese business requires less capital than that of the other types of cheeses. This is

because of the lesser technicality in the processes of making ricotta.

Another advantage was the possibility to place the processing plant for the ricotta

near the source of its raw materials, thus reducing the costs on transporting whey.

Marketing

The technopreneur chose to do direct marketing as well as personal selling since

the product is new to majority of the Los Baños market. This was done due to lack of

32
physical facilities for distribution at the start-up of the business. However, plans for the

future include having a distribution outlet where the ricotta, along with other dairy

products that the technopreneur plans to produce as the start-up continues to improve.

The ricotta was packaged in plastic tubs which can contain 200grams each (Figure 4).

Ricotta as a high-end cheese should be marketed in the high-end consumers as well.

Social networking sites (Facebook, Plurk and Yahoomail) were also utilized as these

were cheaper, more accessible and easier way to connect with the product’s prospective

market. It also occurred that by word of mouth that some more are added to the market.

Market penetration was seen as the best strategy to be applied in marketing the

product because it is not that popular yet. The price of the product needs to be lower than

that of the existing ricotta cheese in the market. Hacienda Macalauan priced their ricotta

at 80pesos per 200gram tub for walk-in customers at their plant in Calauan, Laguna; but

sell it at 90 to 100 pesos on their distribution outlets. The technopreneur decided to set

her price at 80pesos per tub, 10pesos lower than its direct competitor. This pricing

strategy was employed only in the last production run, since there is confusion with the

prices of the direct competitor at the beginning of the study. Along with the pricing

strategy employed, the technopreneur did intense advertising by distributing brochures to

the prospect market and future plans includes putting posters on dairy product

distributors’ outlets.

The product label (Figure 4) was conceptualized only at the end of September and

this was to replace the previous label used from June to August (Figure 5).

Recipes will be distributed to target market in order to create a demand for the

product (APPENDIX 8).

33
Figure 4. Current sample label for the ricotta cheese.

Figure 5. Previous sample label for the ricotta cheese.

34
Product Development

Development Status

Ricotta production has only around 1% yield based on the trial production done by

the technopreneur at DTRI-UPLB. This issue of the ricotta production was dealt through

utilizing cow’s milk in producing ricotta, which eventually caused the increase in yield.

Further researches on how to standardize the production was being studied so that the

technopreneur can efficiently utilize the resources available.

To ensure the product’s consistency in terms of the product quality, control areas in

the production area will be closely paid attention to and will be standardized.

Current Product Development Goals

The technopreneur became successful in increasing the yield of ricotta production

and this will be the foundation of further improvements in the production processes. The

standardization of the activities in the production area will be best realized through

applying a line flow strategy. Since the venture only produces this type of cheese,

applying backward and forward integration was considered.

Backward integration can be done by producing mozzarella cheese, the type of

cheese that can produce the whey which was known to produce a better ricotta out of it.

35
This in a way, changes the focus of the business since the main product will be

mozzarella cheese. This is seen to be a more profitable one since the product was already

kown and there can be more users of this type of cheese. Also, the whey produced can be

used to still produce ricotta.

On the other hand, using the ricotta made from cow’s milk into producing end-

products like cheesecakes, cannoli or other delicacies that uses ricotta, is the forward

integration. The ricotta adds to the mild taste of the product like any other cheeses,

however, the healthy side of ricotta makes the difference. Ricotta has less fat and salt

content unlike the other types. Doing forward integration, will reduce the spoilage of the

product and in a way create a new way to retrieve the capital from producing the ricotta.

Also, this will also help encourage the institutional buyers learn of the ways to utilize the

ricotta cheese and cause them to buy the product.

Financial Plans
Table 2.Cost of capital when producing ricotta at DTRI, UPLB.

Fixed Capital(processing done in DTRI)


Cost Cost
per Units (in
Item unit needed Pesos)
Containers of Whey (capacity:
40L) 150 3 450
Cheese Cloth (per yard) 10 3 30
TOTAL FIXED COST 480

Working Capital for a 30-day period(processing


done in DTRI)
Whey (per Liters) 1 2600 2600
Salt (per kilogram) 10 1 10

36
Packaging (Toll Processed at
DTRI--200grams per tub) 5 150 750
TOTAL WORKING CAPITAL
PER MONTH 3360

OVERHEAD COSTS (PER MONTH)


Transportation 3000
Labor (2persons to work @
100php per day for 22 days) 4400
Advertising 300
TOTAL OVERHEAD COSTS 7700

for 1
mont for 1
h year
Total fixed capital @ 8%
depreciation per month 39 468
Total working capital per month 3360 40320
Total overhead costs 7700 92400
Total cost of production per 1109 13318
month 9 8
For 1
Mont For 1
h Year
SALES (150 tubs @ 150 pesos
each) 22500 270000
Less: Total Cost of Production 11099 133188
5% Loss(from sales) 1125 13500
GROSS INCOME 10276 123312
Percentage Mark-up= 45.67%

Table 3.Cost of capital when producing ricotta in an owned plant.

Fixed Capital(own plant)


Cost per Units Cost(in
Item unit Needed pesos)
Large Casserole 3000 2 6000
Kalan(Heavy Duty) 1000 1 1000
Thermometer 150 1 150
Sifter 100 2 200
Containers of Whey 150 3 450

37
(capacity: 40L)
Cheese Cloth (per yard) 10 3 30
Weighing Scale 200 1 200
TOTAL FIXED COST 8030
Working Capital (for a month or 30-day period)

LPG 700 1 700


Whey (per Liters) 1 2600 2600
Salt (per kilogram) 10 1 10
Zonrox (per Liter) 50 1 50
Packaging (Toll Processed at
DTRI--200grams per tub) 5 150 750
TOTAL WORKING
CAPITAL PER MONTH 4110
Overhead Costs(per month)

Rent(rate at Calauan,
Laguna as of May 7, 2010) 3500
Transportation 1000
Labor(2persons to work @
P100 per day) 5200
Advertising 250
Electricity 500
Water 300
TOTAL OVERHEAD COSTS 10750

for 1 for 1
month year
Total fixed capital @ 8%
depreciation per month 643 7716
Total working capital per
month 4110 49320
Total overhead costs 10750 129000
Total cost of production
per month 15503 186036

For 1 For 1
Month Year
SALES (150 tubs @ 170
pesos each) 25500 306000

38
Less: Total Cost of
Production 15503 186036
1% Loss(from sales) 255 3060
GROSS INCOME 9742 104664
Percentage Mark-up= 38.02%

The two financial statements above show the percentage mark-up in the

production of ricotta in two different situations: production in DTRI, UPLB and in an

owned plant. The difference in the two values of mark-up is caused by the lack of fixed

capital investment in the production at DTRI, UPLB. It is also seen here that the losses

decreases in the owned plant as it is assumed that production and marketing is improved

and is given a lot of attention to. However, the low percentage mark-up can be forecasted

to increase in the future as the cost of the initial investment is being obtained after a

certain period. This will then be used as additional working capital to improve the

efficiency of the production.

The costs of capital on two different scenarios computed above were based on the

estimates provided by Prof. Olive Emata last summer 2010, during the preparation of the

business plan. These, however, did not happen to the production runs done by the

technopreneur. It was because most of these estimates had over or under estimation.

Among the two choices of production areas, the technopreneur highly recommend

having an own plant in order to have a regular production processes. This venture

requires more flexible production activities. Also, this venture can be a part-time

business, thus, an owned plant can be a better place as it has the convenience one wants

to have.

39
The production’s break-even point, based on the production runs, is the

production utilizing between 15 to 20L of raw milk along with the 10% citric acid

coagulant.

*The above prepared financial statement is only for ricotta made of 100% whey.

**The financial statements for the ricotta cheese made out of whey are available at

APPENDIX 1.

DESCRIPTION OF MAJOR ACTIVITIES AND


EXPERIENCES OF THE STUDENT IN ORGANIZING
AND STARTING THE BUSINESS

Business Opportunity Identification/ Business Idea Generation

40
It was in the Abm180 class of the technopreneur last Second Semester of S.Y.

2009-2010 when she got interested in attending a Short-Course Training last Summer

2010. The technopreneur became interested in the ricotta cheese production since the

proposal she made for ABM 180 and that which she was supposed to take in the regular

Special Problem under the course, was dealing with whey also. Also, Prof. Olivia Emata

strongly suggested the product as it was one of the products she has been developing at

DTRI-UPLB.

The training was held in the CEM Lecture Hall, a place that was very conducive

to awake creative minds and further on extract ideas for the business start-ups this 1st

semester.

The discussions by different technology developer and the CEM faculty members

offered a lot of important ideas so that the start-ups can be more realistic. The consultants

of each TLP helped a lot especially on the Technical Aspect to enhance the know-how of

the technopreneur’s chosen field.

The technopreneur came up with a business plan before the short-term course

ended and this was presented to a set of panellists who contributed constructive criticisms

on the study for further improvement of the business start-up.

One thing that encouraged the technopreneur to pursue this study was when Prof.

Emata stated that ricotta was one of the high-end cheeses that have the potential of being

highly valued product in the market as it was not yet produced in high volumes for the

Los Baños market. It was not popularly known in the Philippine market since there are

only a small number of producers who ventures into Ricotta production in the country

and along with that was the small number of consumers of this product. According to the

store check done, ricotta cheese was not sold in the groceries around Los Baños. Also,

41
market study has not been done on the area yet, thus, this study came up to have the start-

up in commercializing the ricotta cheese.

NETWORKING & NEGOTIATION WITH UPLB,


AFNR UNITS, LGU AND GOVERNMENT AGENCIES,
SUPPLIERS, FUND PROVIDERS/ INVESTORS, TARGET BUYERS, OTHER
BUSINESSMEN, BUSINESS MENTORS, OTHER TECHNOLOGY &
MANAGEMENT EXPERTS

The AFNR Training last April 19-May 8, 2010 helped a lot in the technopreneur’s

formulation of ideas and concepts for the business start-up. The training became a

refreshing course especially for the basic functions of management wherein the business

42
start-up can effectively arise from. The speakers, who were the technology and

management experts at the same time, became a credible source of knowledge for

everyone in the training. Their experiences as developers or entrepreneurs were very

valuable inputs to the technopreneur’s mind and were source of strategies for the business

start-ups this semester.

Under supervision of DTRI-UPLB, specifically by Prof. Olivia Emata, the

technopreneur learned about the production process of the ricotta. She asked help from

DTRI regarding the needed improvement as well as technicalities in the production so as

to ensure the quality of the product.

The technopreneur experienced dealing with the main supplier of whey

supposedly, but then turned out using cow’s milk, mainly due to the very low yield of

ricotta from whey. The change of raw material came about from the researches done

showing that the use of raw milk highly enhances the yield, without compromising the

quality of the product.

KKMI-Calauan is an established enterprise near the area where the technopreneur

chose to produce her product. The close supplier tie that the technopreneur had with its

main source of raw materials has been a very important component of the venture

especially in having a sure supply every time it was needed. Also, valuable suggestions

by the supplier regarding the start-up were also noted as important inputs to the

enterprise. Proximity to the supplier of the raw material was supposed to reduce the cost

of the production processes, however, it was not yet realized since there was a very

minimal number of production runs and the rent for the apartment in Calauan was not

maximized. The technopreneur still has to manage the financial aspect of the venture

more rigidly so as to have a consistent production and thus improve the profitability of

43
the business. The technopreneur also learned to deal with the people near the production

area. There was unexpected assistance from the immediate community that made the first

production run in the area successful.

In the first week of the production, that is 2nd week of July, the technopreneur

went to Calauan to look for a space for rent, wherein she can establish the production

plant of ricotta production. Searching for a space available in a strange place was

difficult, but proper dealing with the people around made it a good experience for the

technopreneur. She came to deal with many individuals who helped her find a place

suitable for her study.

The technopreneur finally found a house that costs 1800pesos per month through

the help of a resident of Lamot 2, Calauan, Laguna, wherein the KKMI was situated. The

people around the apartment were not difficult to deal with; thus, it became easier for the

technopreneur to start production on her 3rd day in the area. Hiring a labourer was an

impossible idea yet due to lack of capital so the technopreneur tried to do the production

alone, but then, the residents in the area, upon knowing that the technopreneur was doing

the enterprise for the completion of her academic requirements, offered a lot of help

including transporting the raw material for free.

To have an idea as to how the market size for the product will be, the

technopreneur did an informant interview among institutional buyers and individuals in

the area of study. Among the two groups of informant, the institutional buyers were more

difficult to deal with. It seemed that this group was more attached to their current ways of

preparing foods, and were not easy to encourage regarding the use of the ricotta cheese.

This made the interview more focused on the individual buyers.

44
The technopreneur had lack of consultation time with Prof. Emata during July to

August, because of her travel to the United States.

The technopreneur then resorted to sending electronic mails of the survey forms

to some friends who underwent culinary studies as well as those who responded to have

used ricotta, when the technopreneur was still starting with the study. Also, the

technopreneur searched for users of ricotta from other countries through the use of

networking site like Facebook and search engines like Google. Among the respondents

gained was William Roger, who was from the United States. He was using ricotta for a

long time already and was very familiar to the product. He even thought the

technopreneur of easier ways to conduct the production of ricotta, some of which were

not mentioned by Prof. Emata. Also, he suggested some sites that were very helpful as to

searching for recipes using ricotta which were easy to follow. These were used in the

recipes prepared by the technopreneur, which she planned to suggest to her current and

future customers in order to encourage them to have repeated purchasing.

Another helpful respondent was a Swedish named Erik Kotro, an owner of a

restaurant in Sweden, who added some more input to the technopreneur’s knowledge

about the products’ uses. He even encouraged the technopreneur to pursue the venture

even though he also knew the challenges faced by it, including the low yield in the

production process.

Financing the Business

Funding the enterprise seems to be the most critical part of the venture because

this delayed the production of ricotta for almost a month. The supposed production in 2nd

week of June turned out to be on the first week of July. The expected funding from

45
Philippine Council for Advanced Science and Technology Research and Development

(PCASTRD) for the project did not seem to be available when it was needed, thus the

urge of the want to graduate this first semester forced the technopreneur to loan her

capital from her parents who were both public school teachers, and were able to loan

from the Government Service Insurance System (GSIS). The amount of 10,000pesos was

received on the third week of June and with this amount, the technopreneur purchased all

the needed fixed investments. To assure that the purchasing was worthwhile, the

technopreneur did a lot of canvassing as to which ones will cost her the least, considering

the quality of the materials. She eventually found the lowest price items needed in the

start-up in some stores within Los Baños. Upon completing the needed materials, she

immediately started producing ricotta the following week. (See APPENDIX 2)

The production was then stopped due to the financial constraints, and the

technopreneur tend to spend on other priorities including an educational trip in one of her

major subjects. This led to a stop in the progress of the start-up. The technopreneur

waited for the financial support from PCASTRD. However, it did not arrive until the first

week of October. This resulted to another batch of borrowed capital from the

technopreneur’s parents, which was amounting to 2500pesos.

After months of waiting for the financial support, the first cash advance did arrive

on the first week of October and a production run will still be done after some more

consultation with Prof. Emata, who just arrived in the country on the last week of

September from a trip to the United States.

Production Runs

46
Below are the lists of ingredients, utensils/instrument/other materials and

procedures that were needed for the production of Ricotta Cheese as directed by Prof.

Olivia Emata . (See APPENDIX 2)

Ingredients:

• 20L Cow’s Milk

• 2 & 1/3 cup of 10% solution of Citric Acid

• Refined Salt(1% of the weight of the yield of ricotta)

Utensils/Instruments/Other materials:

• 1 stainless casserole(with capacity of 35L)

• 1 stainless laddle

• 2 stainless strainers

• Cheese cloth

• 1 medium sized container for whey

• 1 laboratory thermometer

• 1 heavy duty kalan

• 1 weighing scale

• 1 LPG

• 1 stainless steel ladle

• 30 tubs (200g and 100g packs)

Procedure:

The technopreneur utilized the home-based way of producing the ricotta cheese.

This entails the use of raw/whole milk, citric acid/apple cider vinegar/lemon juice/rennet

and a little amount of salt.

47
The technopreneur preferred the use of the 10% citric acid solution as this was

cheaper and easier to prepare than the other coagulants. The 10L raw milk was first put in

a stainless casserole and then heated up to 93-95°C. One cup of 10% citric acid solution

was then poured in and stirred slowly for 10-20seconds. Small flakes formed in the milk

and the separation of small curds occurred after a few minutes. For 10 minutes, the curds

were allowed to rise and form from the milk. Afterwards, a ladle was used to collect the

curds and was transferred to a colander lined with a cheese cloth. Slowly, the curds will

drain its whey up to the desired consistency from 15 minutes to several hours.

The technopreneur drained the curds quick when she wants it to be fresh and light

in appearance. On the other hand, she drained it on an extended period if she wants to

have a rich, dense and buttery texture in it. After wards, she placed the drained curds in

the refrigerator for complete draining.

After the desired time of draining, the technopreneur finally packed the cheese in

tubs which will hold 200g each. The ricotta was safe to be used within 10 days.

In the process, some critical points that should be paid attention closely are the

heating of milk, adding of the coagulant, collecting of the curds and the draining prior to

chilling. To ensure the safety of the product in the following areas, there was a separate

area for each step and proper handling procedures are applied. This was made to ensure

the quality of the product and the safety of the consumers of the product.

48
Figure 6. The Cow’s Milk transferred to the casserole for heating.

Figure 7. Checking the temperature while waiting for the milk to boil.

Figure 8. Apple Cider Vinegar used as Coagulator

49
Figure 9. Putting the medium for coagulating ricotta

Figure 10. Curds formed after pouring the coagulator.

Figure 11. Curds are scooped and placed in a strainer.

50
Figure 12. Ricotta draining on a cheese cloth.

Figure 13. Salt weighs 1% of the ricotta gathered.

51
Figure14. Salt being mixed to the ricotta thoroughly.

Figure 15. Ricotta ready for packaging.

Figure 16. 200gram ricotta, with the old label.

52
The following table is the summary of the production runs done by the

technopreneur during the business start-up.

53
Table 4. Summary of Production Runs.

Assumed
Revenue
Production Yield @ 80Php/
Ingredients Gain Loss Comments/Problems
Cost (g) 200g tub

(Php)

20 L Very Low Yield, 1%


1st 0 200 80 ✔
Whey, salt only
30L whey, Very Low Yield, 1.5%
2nd 0 350 140 ✔
salt only
15 L raw Lack of additional labor
milk, salt, led to small amount of
3rd 10% citric 672 1600 640 ✔ collected ricotta
acid
solution
There is an additional
labor but the same
15 L raw
volume of milk used still
milk, salt,
resulted to a loss.
4th 10% citric 822 1950 780 ✔
Increasing the volume of
acid
milk may increase the
solution
profitability of the
production.
6 L Whole Whole milk costs more
Milk, than the raw milk thus
Apple the cost went high. Also,
5th 468.75 500 200 ✔
Cider apple cider vinegar is not
Vinegar, a good coagulant due to
Salt its pungent odor.
5 L Whole The cost of whole milk
Milk, Salt, and the lemon fruit are
6th 502.25 525 210 ✔
Lemon high thus causing loss in
Juice the production.

7th 10 L Raw 468.75 1450 580 ✔ The ricotta produced


Milk, here was the nearest
Rennet, resemblance of its
Salt competitor. This may be
the basis of the standard
production process as it
also resulted to a gain.
Increasing the volume of
milk used may further

54
increase the ricotta
produced.

Production Cost per Overall Production


200g tub Cost

1st 0 0
2nd 0 0
3rd 84 672
4th 84.30 822
5th 187.5 468.75
6th 191.33 502.25
7th 64.65 468.75

Expected Yield (g) Actual Yield

(1% or 10%) (g)

1st 200 200


2nd 300 350
3rd 1500 1600
4th 1500 1950
5th 600 500
6th 500 525
7th 1000 1450

The first production occurred during the sample processing of mozzarella. The

process made use of 20Liters of milk and yielded about 10 to 15Liters of whey. These

were then used to produce ricotta. The ricotta produced was only 1% of the raw material.

This was given as sample to the employees at International Rice Research Institute

(IRRI). Their response gave the technopreneur encouragement because they liked the

product and mentioned that they will buy if the product will be marketed to them.

55
However, the technopreneur stopped for almost two weeks in producing ricotta to

spend the rest of her summer vacation in Mindoro, after the short-course training. As the

semester started, she was again given a chance to try producing ricotta. This time, the

15Liter whey was from the production of kesong puti. The yield was a bit higher, 1.5% of

the raw material. This was again given as sample to a prospective institutional buyer, but

there was no response obtained from them. Thus, the technopreneur did not know how

the 2nd production went.

The technopreneur’s first and second production was made of pure whey, the first

with that from mozzarella production and the second from kesong puti. It is on the third

to the seventh production that raw milk and whole milk was used.

During the first production, when whey was used, the ones who tested the sample

liked the mild texture and the slightly salty taste of it.

During the third production run, the technopreneur changed the raw material to

cow’s milk. The production using 20Liters cow’s milk aimed to increase the yield and to

know how the product will be compared to the first production. The technopreneur then

told the employees in IRRI that she was able to produce ricotta again. Mistakenly, the

technopreneur was not able to consider that the ricotta she had just produced was from a

different raw material and the outcome might be different. Eventually, the provided

samples were not of the same quality with the sample. The employees said tthat the

ricotta tasted less salty and the consistency was more firm, thus the attention of the

technopreneur was called by some of the employees.

The technopreneur thought of returning their payment since their expectations

were not met, but then, the customers, did not allow it to happen, but then encouraged the

technopreneur by telling that they understand the situation and believe that the product

56
will still improve. With this experience, the technopreneur learned that the product needs

to have consistent high quality, and this should be the top competitive priority of the

enterprise for it to establish itself being a high-end product.

The fourth production run was done last July 26, wherein surprisingly, the

production produced ricotta was about 13% as opposed to the expected amount which

was only about 8 to 10%. The ricotta produced was now adjusted to the customers’

preference and a sample was again provided to the employees of IRRI before the

technopreneur sold it to them. Eventually, they liked it and again they bought ricotta.

The production runs stopped for less than a month due to lack of capital and

busyness of the technopreneur with her other subjects. She resumed after her parents,

again lent her with 2500pesos.

Again, the technopreneur produced for the 6th time. This time, the technopreneur

experienced problems as to conducting the production or ricotta. The technpopreneur

came on a Saturday morning, at about 11am at Calauan, Laguna. She immediately went

to KKMI, to purchase 10Liters of raw milk, but was surprised to know that the milk was

out of stock. As a result, since the technopreneur did not want to waste her stay at

Calauan, she decided to utilize buy 6Liters of whole milk. Also, there was no available

anhydrous citric acid, thus, the technopreneur resorted to using the apple cider vinegar.

The technopreneur herself did not want the outcome of the production due to the strong

odor of the apple cider vinegar. She then decided to wash the curds produced with

distilled water so as to reduce the odor and after-taste caused by the vinegar. This was

one of the instructions by Prof. Emata, on how to get rid of the after-tastes of cheeses if

there was any.

57
The main material used in the production is the main reason for the variations in

yield. When whey is used, the yield is only around 1-3%, while the raw cow’s milk yields

10-12% of ricotta cheese.

Also, another reason for the change in yield is the coagulant used. The

technopreneur tried using four different coagulants: 10% citric acid solution, apple cider

vinegar, lemon juice and rennet. The amount of each coagulant varies with the number of

liters of raw milk used. Utilizing less than the needed amount causes the yield to be lesser

as well. This affects the production runs done by the technopreneur since the process is

not standard yet. It is somehow seen that the yield of ricotta from the production runs are

higher than expected yield, as said by Prof. Emata.

The technopreneur at first planned to tie-up with a co-AFNR student; however,

the ones who continued with the cheese processing are both on cream cheese production

and thus making it difficult for the technopreneur to source the whey needed. This then

resulted to the technopreneur to utilize the cow’s milk to make the production more

profitable.

Figure 17. Process Flow

58
Marketing/ Selling activities

Introducing the ricotta cheese to the market is a very important step to do before

the marketing takes place. Providing samples to prospect customers is one way of telling

about the product to them. It is important for the technopreneur also to know the

technicalities of the product, like how it is used for food preparation, or even the

nutritional value of the cheese. As experienced by the technopreneur, being unable to

answer the questions of the customers reduces the possibility of repeat usage of the

product. Also, the consistency of the quality of the product is also needed to be

maintained, or else, the customer’s demand will decrease.

Utilization of the technology of social networking sites was applied very well to

the marketing/selling activities of products like ricotta cheese. Aside from being a fast

means of advertising, this was also less costly.

The technopreneur found it very important to obtain orders first, before the

production, knowing that ricotta cheese was a highly perishable product. This will lessen

the spoilage of the product and will entail more efficient production since there was

already an estimate as to how much will be needed by the market. However, adverse

consequence may be that the demand of others may arrive when there is no inventory

available. This will still result to a negative stigma of a small business start-up and thus

have to be dealt with properly.

Marketing to institutional buyers was still seen as the most profitable way of

venturing to this enterprise, even though it wasn’t realized yet, since they will have bulk

orders and were capable of sustaining the orders. The technopreneur came up with a way

59
to induce consumption of the ricotta cheese, and this was by providing a set of recipes

that makes use of ricotta and these recipes were easy to follow. Also, brochures would be

distributed to individuals and institutional buyers so that they will know what ricotta is.

The brochure would contain the meaning of ricotta, its uses, its origin, and a “did you

know?” part telling a fact about cow’s milk. With these materials, the technopreneur

believed that there would be better knowledge of the product and this would give them

the urge to try the product and try the recipes on their own. This brochure can be passed

on to other people and can then be a medium of marketing to others as well.

Sample recipes can be also given in order to create a market for the product

(APPENDIX 8).

60
Reconfiguring the Product and the Business Model

Traditionally, ricotta was made with whey, a by-product from cheese making, but

since this raw material was not usually available, thus, the technopreneur preferred to use

raw milk from cow.

Upon receiving the financial support from PCASTRD, the technopreneur started

her production processes at once. The main source of the raw milk was Katipunan ng

Kooperatibang Maggagatas, Ink. (KKMI) in Lamot 2, Calauan, Laguna. The

technopreneur rented a place in the area and this served as the production area. The

processing of ricotta up to the point it was packed was done in the kitchen-type apartment

and afterwards, brought to Los Baños, directly to the institutional buyers or in the

refrigerator of Sulyaw Canteen at Women’s Residence Hall which was rented by the

technopreneur whenever there was inventory on hand.

The institutional buyers were then expected to use their acquired ricotta as add-on

to their delicacies or menus for their clients.

61
Suppliers
Home- of
Raw
based
Milk
(100% cow’s)
processing
KKMI

(KKMI)

Institutiona
l Buyers
-Pastry Shops
- Restaurants
- Hotels

End
Consumers

Funding
from
PCASTRD,
UPLB &
PCARRD-
DOST

62
Figure 18. Business Model for Ricotta Cheese

ASSESSMENT OF THE PERFORMANCE OF THE START-UP

Marketing

Ricotta production was seen in the early part of the start-up as a highly profitable

venture, being a new product in the market. But as the start-up progresses, problems

arise. The comment received from the employees of IRRI on how different the latter

ricotta tasted from the sample provided showed the inefficiency of the product at this

early stage of the business. This problem must not be taken easily because this may

63
happen again in the future if not dealt with properly. As an initial response of the

technopreneur, returning the payment of the customers may really be a solution if the

customers were already having a close tie with the business; however, this is not the case

all the time. New customers will arrive and there may be different responses as to how

the problems will arise. The technopreneur needs to be keener in managing the start-up.

Ricotta cheese being a new product in the market and a highly perishable one must really

be paid with much attention and must have a standardized process. Changing of raw

materials may be the weakness of the start-up causing it to stop from progressing at

present. The solution for the problem faced by this business must be the standardization

of the ricotta production. The technopreneur knew that when a product shows consistent

high quality, every other improvement will follow including the increase of the product’s

market.

Production

The line flow strategy was the exhibited type of flow strategy in this business as

the products need to be standardized and demand may become high and as the product

became known to the market. This is one of the targets of this product, to be known not

only in Los Baños, nut also in the nearby cities and towns. The five production runs

showed different cases that may be avoided by many other aspiring technopreneurs. This

serves as a reminder for the technopreneur that not all businesses where you can use free

64
resources are very profitable. The use of whey may cause the very slow growth of the

venture, thus, research and development must be continually employed in the product

innovation of the business start-up. The technopreneur must not have the feel of

insecurity with respect to one’s own products or offerings because this will further pull

the business down. As a manager of a business, one must believe with what he offers and

that will really attract others to it.

Personnel

The type of this business will be a sole proprietorship and this means that the

future of the venture was in the technopreneur’s hands. The ricotta production was

observed to be a very laborious work, that’s why there was a need for hiring workers who

can be of help in the production. The production usually takes about 6 to 7 hours when

done alone, and there was more spillage. On the other hand, when one worker was added,

there can be a more efficient process as time of production will be shorten and the

spillage will be minimized. The technopreneur already tried doing this and it really

helped in minimizing losses and making the tasks easier to facilitate.

In one of the activities in the short term course, the technopreneur was able to

discover some of her personal entrepreneurial competencies and these include

persistence, commitment to the work contract, information seeking, and systematic

planning and monitoring. On the other hand, her weaknesses involve opportunity seeking,

demand for quality and efficiency, goal setting and persuasion and networking.

She then came up realizing that she used to take advantage of her personal

competencies, then focused and made improvements on how she dealt with her

weaknesses.

65
Finance
As for the financial aspect, the problems were mainly for the lack of working

capital most of the time. This can now be seen as a solved problem since the

PCASTRD’s funding already arrived. This however, does not simply imply that there

will be no other problems to arise. The technopreneur must still be a wise spender of

money in order to make the venture worthwhile. The capital must be put to good use and

the returns must be effectively used to earn more. Expenses may not be avoided but wise

decision making causes a lot of difference.

START-UP PROBLEMS ENCOUNTERED AND


THE COPING UP MEASURES ADOPTED BY THE STUDENT

There are a lot of problems met by the technopreneur in the start-up activities.

Starting from the financing aspect of the business, the project experience delays and the

enterprise just started producing ricotta for marketing on the second week of July. This is

due to the delay of the expected financial support as well as the other concerns of the

technopreneur with regards to her other academic loads this semester. The technopreneur

then asked her parent’s help on the financial deficiencies of the enterprise.

66
In the production function of the enterprise, the problem experienced is the very

low yield of ricotta when 100% whey is used as the main raw material. This causes very

low production and further on, a costly process for the low yielding process, not efficient

enough to be profitable. Thus, the technopreneur went into producing ricotta using cow’s

milk, and the production results in a significant increase in the yield. This particular

increase makes it possible for the enterprise to earn and be a profitable business.

Another problem that arises in the duration of the start-up is the very slow

response from the ones who take samples of the product. This may not be a big deal

though because once they approved the product, especially the individual customers; they

will be the ones who will help in the marketing of the product, simply through word-of –

mouth. The pricing strategy has encountered a lot of problems in the duration of the study

due to conflicting prices that the technopreneur learned about. However, it has been

decided that what will be implemented here is the market penetration pricing, by giving a

lower priced ricotta cheese to the market while intensely promoting the product to

prospective markets, especially the institutional buyers including restaurants, hotels and

pastry shops. In the long run, the product is expected to be known in a wider geographical

area and more market will be tapped for further commercialization of the product.

67
KNOWLEDGE, SKILLS, VALUES/ WORK ETHICS, AND INSIGHTS GAINED/
DEVELOPED FROM THE STUDENT’S AFNR PROJECT AND START-UP
EXPERIENCES & IDENTIFICATION OF THE PECULIARITIES OF
TECHNOLOGY-BASED BUSINESSES

A lot of business concepts are being refreshed in the technopreneur’s mind as she

decides on every move she make in the enterprise start-up. The moves involves monetary

values thus, it is a good training to the technopreneurs in preparation for the future

expansions of the enterprises when there are bigger cash flows to deal with. The first

hand experience also enhances the technopreneurs’ independency on decision making

and it becomes a training ground to become future manager of an owned business.

It is not the usual flow of business when one deals with a technopreneurial venture. This

is so, because of the technicalities that a technopreneur needs to learn about the product

68
he offers and not merely buying or selling of the product. There is also a need for good

rapport with the technology experts, making sure that there is good communication

between the parties. There should also be a continuous research and development for the

product so as to avoid being obsolete after a period of time.

With regards to the type of product being marketed, a new product does not

always mean a good profit. Without proper marketing or advertising efforts, a valuable

product will become useless. There should always be a ready market that can purchase

the goods especially in the case of ricotta, when the product is highly perishable. Another

important thing to keep in mind is the consistent quality a product should have.

Inconsistencies will lead to failures in marketing and further on, failure in the whole

business as well.

It is also always necessary to know who your competitors are. This thing in mind

can be an effective way to be on your foot for regular improvement in the enterprise. If

the product will just stay with what it is for a very long time, there is a possibility that the

other companies will overtake the enterprise’s efforts. In the price competitions for

example, one might reduce his costs. This is not always equal to a large profit. There are

times that the return on investment might be of big amount but if all are receivables, the

enterprise is still highly affected. An enterprise should be liquid to some extent in order to

function well.

Being a technopreneur may seem to be a great privilege as to earning profits from

other people’s innovation. However, there will be experienced difficulties as to how the

product will be introduced to the market without the technopreneur knowing about it. It is

a must for a technopreneur to master every detail about his product because this way, he

will be more confident with the use of his products and thus attracting more customers to

69
buy these products. Also, as a technopreneur, one must not just be happy with their

current situation because technology easily wears out, and without the desire for

improvement, the business will experience slowing down with its growth and may even

end up being obsolete.

Resourcefulness, creativity and innovativeness are really needed to be enhanced,

in technopreneurs, just like how other types of entrepreneurs need it. Resorting to

copying what others are doing may be the easiest way to do, but being innovative and

creative can further bring a technopreneur to places he may not have imagined.

Failing is not always a bad thing. As experienced by the technopreneur, failures

can further build up one’s confidence and improve the future response that a

technopreneur can give to a certain situation or failure. It is also an enhancement as to

how a technopreneur will avoid similar situations, doing it in a better way and also

strengthening one’s decision making skills by facing a lot of choices, learning from

other’s mistakes and really making big decisions for oneself.

Being your own boss, in an entrepreneurial environment, might not always mean

that you can decide when you will start your work, or even end it. As for the last

production run experienced by the technopreneur, entering into this business, one must

need to properly deal with everyone involved in the business. For example was the

supplier relationship that the technopreneur has with KKMI. It is not an excuse for her

that she was from Los Baños, for her supplier to reserve for her the milk needed for

ricotta production. Every technopreneur must really have the discipline in order to attain

the goals they have set for their business. Lack of discipline may lead to extra expenses,

maybe for paying tax, this may mean extra fine. To avoid such, there must not be any

self-centered mindset that works in the business. Everyone has equal rights, and without

70
properly abiding with the rules may really lead someone out of the game, gaining

nothing.

FUTURE PLANS AND GROWTH STRATEGIES


FOR THE BUSINESS

The technopreneur still has a lot to learn on the technical side of the ricotta

production. The yield has always been changing and thus, adjusting to the yield will form

a standardized product that will ensure the consistent quality of the product. Good rapport

with the current and future customers is expected to enhance the market and will then let

the enterprise grow in the future.

There may be a case that the ricotta will not have consumers, thus, forward

integration can be done. This will be on learning how to cook or the other utilization of

the cheese that will create wealth. For backward integration, it may be possible to

produce other types of cheeses that are profitable and viable in the market and still make

use of the whey available from this venture.

71
In the case that the technopreneur is already making use of the cow’s milk in the

manufacturing of the ricotta, the whey that will be available in the process can still be

made into ricotta and thus reducing wastage of the resources in the enterprise.

SUMMARY, IMPLICATIONS & CONCLUSIONS

Ricotta cheese manufacturing is a new business venture taken up by the

researcher of this study. The commercialization of ricotta cheese still needs to be studied

thoroughly because of the lack of market that will sustain its current situation. Based on

the start-up of this enterprise, ricotta cheese still has to have its established market. The

venture may look good and very profitable, but lacking proper management, the

enterprise won’t be able to take advantage of the budding market for this product. Thus,

the technopreneur really needs to be very wise in the decisions to make as to how the

enterprise is going to be managed. The strategy to be applied must be market penetration,

giving lower price to the product than the ricotta cheese currently available in the market.

There may also be an immediate need to add a worker in the manufacturing process since

the production is gaining economies of scale when done by two or more persons. Seven

72
hours of work for one person turns out to be a 4-hour work when there is a worker added.

In the long run, this increase in the workforce may lead to increase in the profitability of

the venture. This business enterprise does not only bring wealth to a person but also

brings employment to others.

A consumer and market survey done showed that the product was more attractive

to the individual buyers since they are more flexible as to deciding on what they will be

cooking for a day, unlike the institutional buyers who already are faced with their

existing set of food preparations and other delicacies. It is learned however that these

institutional buyers may be tapped using intense marketing, that which will introduce

them to the ways of utilizing ricotta with which they can benefit from. Brochures and

recipes that can help them know about the product and at the same time help the

technopreneur improve with the venture given their suggestions and criticisms. The

pricing strategy to be employed will give lower price that is 80pesos per 200gram tubs of

ricotta and there will be market penetration employed by producing the ricotta cheese

made of cow’s milk and eventually bring it to the different segments of the market.

73
RECOMMENDATIONS

For the Student’s Business Plan Implementation & Start- Up

The technopreneurship Study is a very challenging type of Special Problem that

deals with technology based businesses in UPLB. For students who are inclined to taking

risks and are good in decision making and still would like to improve, this is an excellent

outlet of such skills due to the hands-on training and not only an observing type of

experience for them. This will also enhance their management skills as they will be

applying the lessons they learned from the four year stay they had in the university. Also,

they had an advantage on the other graduating students since the technopreneurship study

may be continuous process even after graduation. Unemployment will not be an issue

anymore since a student will have his own business and he still has the chance to be

innovative and further create businesses that will complement the one he started. This

study is also an avenue for the student to give gratitude to the university and help in the

74
improvement of the technologies especially in the marketing area where the common

weakness of a technopreneurial venture is present.

The current production processes was having no problems with its source of raw

materials, KKMI. The company has continuous supply of raw milk and can be easily

purchased providing one has his/her own gallon container for it. The technopreneur used

her own container which she used to transport the milk from the company to the

manufacturing area.

This venture highly requires a consistent quality as it targets the high-end market.

Thus, in order to have the product that will be highly recognizable with its high quality,

the production processes needs to be standardized along with its amount of ingredients

and time of cooking.

For Yourself & Other Technopreneurs

The experiences I learned from this experience are a really big help especially in

my management skills. There may be a possibility that this study may fail but the

learning I will gain from these experiences will further build my personality and my

attitude towards facing risk and can be my foundation in facing the real world after

graduation. It is not an easy task to work on an enterprise start-up but the knowledge

gained from these are more than enough to improve the way I will face similar challenges

in the future. This study changes my outlook in life. Going into business is not mainly

dependent on the availability of capital or the technology, but on the creativity of an

individual in creating a need, meeting those needs and earning from catering to those

needs. The lessons I learned from the other management subjects I took will not be of any

75
value if I will just keep them in my head. The technopreneurial study is an avenue where

I was able to release my abilities and at the same time learn from my mistakes.

The business world is not a vault of money wherein one can just enter and get

what he wanted. Instead, it is like a land ready to be cultivated, maybe at times, full of

weeds needed to be cleared in order for one to gain wealth. Industriousness and creativity

are some of the investments one must have in order to attain the objectives he has set for

his future.

The financial assistance from the Department and the program may not be

available in the future, thus, the student or other technopreneurs must be resourceful

enough to find their own sources may it be boot strapping, lending from the bank or

borrowing from relatives and friends. Also, one should learn to prepare his/her own

money through working on simple jobs that can help in the financial requirements of teh

start-up. The technopreneur did her own fund raising activities through tutoring a Grade 2

student and earning a considerable amount from it. The venture will not be successful

even if one has the resources needed. Perseverance and innovativeness is needed to let

the venture bloom and reach its maximum profitability.

For The AFNR Project/ DAM/ AFNR Units

Together with other students of the AFNR Training, the technopreneur of this

study is very thankful for the opportunity of being one of the recipients of the free

training and well-guided business start-up. This can be the stepping stone for the students

who will enter the business world. Having the first-hand experience of conducting a start-

up is one of the most valuable lessons one can learn in this university.

76
This should be continued to the next batches of Management students and if

allowable, this may be included in the curriculum as it contributes a lot to the learning

process of an Agribusiness Management student. There should also be a definite financial

assistance that the students can use given they are still lacking the capital needed in the

start-ups.

ABM Curriculum

The Agribusiness Management Curriculum might want to include this short-

course training in the required subjects for the students. It is a good source of compressed

yet very important management concepts being discussed in the lessons and are directly

applied to the real situations of an existing business. This will give a better understanding

of the management concepts as well as the high experiential learning as students are

being subjected to the real problems and are demanded to be independent thinkers. With

these, the graduates of Agribusiness Management can be more competitive when faced

with challenges of the real world.

For Current And Potential Stakeholders

Technologies in UPLB are ones that are very rare to find anywhere in the country.

Accordingly, a chance to focus on the commercialization of these technologies can be a

very promising venture when given with proper attention. Many promising technologies

like Biospark Trichoderma, Bio-N, VCO and other products can be invested upon and

77
helped in the marketing area of its enterprise. Proper allocation of resources is needed; as

well as enough investment can be utilized well if there will be enough resources for these

arising technologies. Stakeholders should learn to seek for the promising technologies

and further on improve its marketability so as to create wealth from such technologies.

REFERENCES

Emata, O. (2010) ADSC Processing Plant [Interview by E. Maranan] University of the


Philippines Los Banos, 27, July 2010.

Garin, B. (2005) A Case Study of a Dairy Farm and Processing Company : Hacienda
Macalauan Inc.. Unpublished BS Thesis, University of the Philippines Los Baños

How to Make Ricotta Cheese. http://www.wikihow.com/Make-Ricotta-Cheese.


Accessed on August 23, 2010.

Lopez, M. (2005) Business Plan for the Expansion of the Philippine Carabao Center
Processing Plant from 200Liters to 500Liter-Capacity in General Trias Cavite.
Unpublished BS Thesis, University of the Philippines Los Baños

Nash, S. (2008) Business Analysis of the Animal and Dairy Sciences Cluster Dairy
Processing Plant and Dairy Bar. Unpublished BS Thesis, University of the
Philippines Los Baños

Recipes for Ricotta-- http://recipeland.com/search?q=RICOTTA. Accessed on October


3, 2010

Ricotta-Cheese Description. http://www.cheese.com/Description.asp?Name=ricotta.


Accessed on September 18, 2010.

Ricotta: Creamy Homemade Ricotta.


http://mamachronicles.typepad.com/in_jennies_kitchen/2009/09/creamy-
homemade-ricotta.html. Accessed on September 26, 2010.

78
Ricotta Cheese-- http://www.cooks.com/rec/search/0,1-0,ricotta_cheese,FF.html.
Accessed on October 3, 2010

APPENDIX

79
Appendix 1

Cost of Goods Manufactured


Ricotta Cheese
Cost of Goods Manufactured
For the month ending, July 31,2010
JULY
Quantity Price (Php)
Direct Materials:
Raw Milk 20L 640.00
Salt 20g 10
obtained for free from
Citric Acid 100mL DTRI
Direct Labor:
Labor 0 0
Total 650.00

Manufacturing Overhead:
Packaging Materials 3(200g) &
200g packs=5pesos; 100gram 11(100g) 37
packs=2pesos
2 pesos per label 14 packs 28
Transportation 4rides 60
TOTAL 125.00
COGS 775.00

COST OF GOODS SOLD


July
Total Manuf. Cost 775.00

80
Beginning --------
Inventory
Total goods 775.00
available for sale

Ending Inventory ---------


Cost of Goods Sold 775.00

Appendix 2

Working Capital and Fixed Assets

WORKING CAPITAL EVERY MONTH


(TWICE A WEEK PRODUCTION)
Rent(Lamot 2, Calauan, Laguna)—started in July
10,2010 1800
Raw Milk
(@32 per Liter; 20L per production; 2x a week) 5120
Zonrox(1Liter) 50
LPG(11kg) 617
Citric Acid(450mL) 200
Refined Salt(500g) 25
TOTAL WORKING CAPITAL 7812
FIXED ASSETS
(purchased from July 9-11, 2010)
1 Stainless Casserole(35L capacity) 629
1 Kalan(heavy duty) 999
1 Weighing Scale 119
1 LPG Tank 933
1 set of Measuring Cups 37
TOTAL FIXED ASSETS 2717

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Appendix 3

A. Consumer and Market Survey

Good morning/afternoon!

I am Pauline Carmel Joy C. Eje, a graduating B.S. Agribusiness Management


student of the University of the Philippines Los Baños, Laguna. I am currently
conducting “A Technopreneurship Study on Ricotta Cheese in Los Baños, Laguna”. In
connection to this, I would like to ask about your personal insights and opinion about
Ricotta cheese. Your answers will be kept confidential and shall be used for this research
purpose only. Thank you very much for your time and God bless.

Part I.

1. Are you familiar with Ricotta Cheese?

[ ] Yes [ ] No

1.1 If yes, where did you learn about it? ________________________________


1.2 If yes, how familiar are you with ricotta cheese?
[ ] heard but not yet seen
[ ] had seen but not yet tasted
[ ] had seen and tasted

2. What brands of ricotta cheese do you know?

[ ] DTRI’s [ ] Hacienda Macalauan’s

3. What brands have you used and/or tasted?

[ ] DTRI’s [ ] Hacienda Macalauan’s

4. Is this your first time to taste ricotta cheese?

[ ] Yes [ ] No

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4.1 If no, when and where have you tasted it?
_______________________________

5. What other types of cheeses have you tasted already?

[ ] cream cheese [ ] blue cheese


[ ] edam cheese [ ] mozzarella
[ ] parmesan [ ] others (specify):
__________________

6. How often do you buy ricotta cheese?

[ ] everyday [ ] several times a week


[ ] once a week [ ] several times a month
[ ] once a month [ ] rarely

7. Where do you usually buy ricotta cheese?

[ ] supermarket [ ] individual
[ ] grocery store [ ] others, pls. specify:
_______________

8. How many grams do you buy per instance?

[ ] 50g [ ] 200g
[ ] 100g [ ] others, pls. specify:
_______________
[ ] 150g

9. In what type of food do you use ricotta cheese as ingredient?


_______________________________________________________________

10. How much ricotta cheese do you use per type of food?
______________________________

11. When was the last time you use ricotta cheese?

[ ] within the day [ ] within the week


[ ] within the month [ ] others, pls. specify: ____________
[ ] within the year

In the list below, check which general characteristic of ricotta cheese you consider when
buying:

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[ ] price [ ] availability

[ ] packaging [ ] brand

[ ] flavour/taste [ ] nutritional value

[ ] producer/manufacturer [ ] others, pls. specify: ______________________

Price Sensitivity Analysis

Below is price scale for the Ricotta Cheese. Please answer the following
questions using the scale.

Would you buy a 200g tub of ricotta cheese at P80? [ ] Yes [ ] No

Would you buy a 200g tub of ricotta cheese at P90? [ ] Yes [ ] No

Demographic Profile.

Name:

Address:

Province:

Civil Status:

Age:

Monthly Income/Allowance:
Educational Attainment/ Level:

Family Size:

Position in the family:

___ head ___middle child

___ wife ___ youngest child

___ eldest child

Living with the family?

___ Yes ___ No

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Appendix 4

Ricotta Cheesecake with Fresh Berry Topping

Ricotta Cream Cannoli

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Mocha Ricotta Tiramisu

Ricotta Choc Mousse

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Cherries with Ricotta Cheese and Toasted Almonds

Lasagna

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Manicotti

Ravioli

Appendix 5

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Hi!

Do you know someone who has a demand for RICOTTA cheese?

Students of culinary schools, chefs, cooks, owners of pastry shops perhaps, or


even someone who loves to experiment in cooking/baking.

***Like mascarpone in northern-Italian cuisine, ricotta is a favorite


component of many Italian desserts, such as cheesecakes and cannoli. There
are also kinds of cookies that include ricotta as an ingredient.

In Italian households and dining establishments, ricotta is often beaten


smooth and mixed with condiments, such as sugar, cinnamon, orange flower
water and occasionally chocolate shavings, and served as a dessert. This basic
combination (often with additions such as citrus and pistachios) also features
prominently as the filling of the crunchy tubular shell of the Sicilian cannoli,
and layered with slices of cake in Palermo's cassata.

Combined with eggs and cooked grains, then baked firm, ricotta is also a
main ingredient in Naples' pastiera, one of Italy's many "Easter pies" .
Regional variations may be sweet or savory.

Ricotta is also commonly used in savory dishes, including pasta, calzoni,


pizza, manicotti, lasagne, and ravioli.

It also makes a suitable substitute for mayonnaise in traditional egg or tuna


salad and as a sauce thickener.

Source: http://en.wikipedia.org/wiki/Ricotta#Common_culinary_uses

*** i'll be producing RICOTTA soon. just send me a message for


inquiries..thanks!:)

--Carmel Eje :)

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Responses:

1. Hi Carmel,

Really? Marami kami dito sa office who would like to buy ricotta cheese. Just tell
me when the cheese is available.

Always,
Tita Susan
2. ey carmel!

awesome to hear from you. i'm pretty sure conan will have great use for it.

thanks for heads up!

musta na? have a good one

Rom Saplaco

Appendix 6

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William Audette October 1 at 6:41am Report
Wow, that is quite the list.
1. What types of food do you put in ricotta cheese?
A: We can put a few seasonings, (i.e. salt, pepper, olive oi, and lemon juice) in the
cheese and eat it fresh like with crackers or raw vegetables. Seasoned grilled
vegetables tossed lightly with similar seasonings is also good. Fresh Ricotta
Cheese generally has a good flavor that is best eaten with lightly seasoned
accompaniments so as to enjoy the flavor of the cheese. Homemade cheese is
more flavorful than store bought by far. It is also more versatile.

Typically though we do not put food into ricotta cheese but build food around it.
Typically we'll stuff large noodles such as manicotti or Cannelloni
http://bit.ly/ajrSJP with this cheese for a tasty main dish. Lasagna is also a popular
dish made with this simple to make cheese.

2. May I know some recipes you have?


A: There are too many to list. If you insist on one, let me know and I'll dig one up
for you.

3. What brands of ricotta do you know?


A: There are many store bought brands, but we make our own.
Organic Valley, Sorrento, are a couple of the brands we have locally.

4. Where do you buy ricotta?(supermarket, bakeshop,etc.) or do you make your


own?
A: We make it fresh at home. It is simple and only takes a few minutes.

5. How much ricotta do you use per instance?


A: Usually we make a pound or two at a time depending on how many guest we
have over.. A pound feeds our family of four easily.

6. How often do you use ricotta?


A: Maybe three times a month, and maybe more if we are in the mood for it.

William...

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William Audette October 1 at 3:12pm Report

Here are some easy recipes. Note that milk in America in not sweetened with sugar when
purchased from the store.

http://www.italianfoodforever.com/iff2008/index.php?
option=com_content&view=article&id=679%3Aricottacheese&catid=68%3Adebsblog&Itemid=
67

Making Ricotta Cheese At Home

www.italianfoodforever.com

Joomla! - the dynamic portal engine and content management system

Share

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Appendix 7

Direct Materials, Indirect Materials and Manufacturing Overhead provided by the


AFNR Project on the Initial Production
Whey-based Ricotta Cheese
Volume of Production: 20 L

Direct and Indirect Materials


Total Cost
Price Required (Php)
Whey from Mozzarella Cheese Php0/L 20L 0
Refined Salt Php10/200g 5g 0.25
Packaging
Plastic Tubs Php 5 / tub 1 tub 5
TOTAL DIRECT AND INDIRECT
MATERIALS COST 5.25

Manufacturing Overhead
Total Cost
Price Required (Php)
Toll Processing Fee Php 0/ L 20L 0
TOTAL MANUFACTURING
OVERHEAD 0

Direct Materials, Indirect Materials and Manufacturing Overhead provided by the


AFNR Project on the Initial Production
Whey-based Ricotta Cheese
Volume of Production: 30 L

Direct and Indirect Materials


Total Cost
Price Required (Php)
Whey from White Cheese Php0/L 30L 0
Refined Salt Php10/200g 8g 0.70
Packaging
Plastic Tubs Php 5 / tub 2 tubs 10
TOTAL DIRECT AND INDIRECT
MATERIALS COST 10.70

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Manufacturing Overhead
Total Cost
Price Required (Php)
Toll Processing Fee Php 0/ L 30L 0
TOTAL MANUFACTURING
OVERHEAD 0

Direct Materials, Indirect Materials and Manufacturing Overhead on the 1st and 2nd
Home-based Production Run
Cow’s Milk-based Ricotta Cheese
Volume of Production: 15 L

Direct and Indirect Materials


Total Cost
Price Required (Php)
Raw Cow's Milk Php32 / L 15L 480
Salt Php 10 / 200g 50g 2.5
10%Anhydrous Citric Acid
Solution Php150/kg 50 7.50
Miscellaneous
Zonrox (Hypochlorite) Php 10 / bottle 1 bottle 10
Dishwashing Liquid Php 12 / sachet 1 sachet 12
TOTAL DIRECT AND INDIRECT
MATERIALS COST 512

Manufacturing Overhead
Total Cost
(Php)
Gas 100
Fare to Junction
jeepney 6
Fare to Calauan
jeepney 15
Fare to Lamot2
Tricycle 8
Fare to Los Banos
jeepney 23
Fare to Women’s Dorm
jeepney 8
TOTAL MANUFACTURING
OVERHEAD 160
Direct Materials, Indirect Materials and Manufacturing Overhead on the 3rd Home-
based Production Run

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Whole Cow’s Milk-based Ricotta Cheese
Volume of Production: 6 L

Direct and Indirect Materials


Total Cost
Price Required (Php)
Whole Cow's Milk Php44 / L 6L 264
Salt Php 10 / 200g 5g 0.25
Apple Cider Vinegar Php75/500mL 150mL 22.50
Miscellaneous
Zonrox (Hypochlorite) Php 10 / bottle 1 bottle 10
Dishwashing Liquid Php 12 / sachet 1 sachet 12
TOTAL DIRECT AND INDIRECT
MATERIALS COST 308.75

Manufacturing Overhead
Total Cost
(Php)
Gas 100
Fare to Junction
jeepney 6
Fare to Calauan
jeepney 15
Fare to Lamot2
Tricycle 8
Fare to Los Banos
jeepney 23
Fare to Women’s Dorm
jeepney 8
TOTAL MANUFACTURING
OVERHEAD 160

Direct Materials, Indirect Materials and Manufacturing Overhead on the 4th Home-
based Production Run

95
Whole Cow’s Milk-based Ricotta Cheese
Volume of Production: 5 L

Direct and Indirect Materials


Total Cost
Price Required (Php)
Whole Cow's Milk Php44 / L 5L 220
Salt Php 10 / 200g 5g 0.25
Lemon Juice Php20/piece 5pieces 100
Miscellaneous
Zonrox (Hypochlorite) Php 10 / bottle 1 bottle 10
Dishwashing Liquid Php 12 / sachet 1 sachet 12
TOTAL DIRECT AND INDIRECT
MATERIALS COST 342.25

Manufacturing Overhead
Total Cost
(Php)
Gas 100
Fare to Junction
jeepney 6
Fare to Calauan
jeepney 15
Fare to Lamot2
Tricycle 8
Fare to Los Banos
jeepney 23
Fare to Women’s Dorm
jeepney 8
TOTAL MANUFACTURING
OVERHEAD 160

Direct Materials, Indirect Materials and Manufacturing Overhead on the 5th Home-
based Production Run

Raw Cow’s Milk-based Ricotta Cheese


Volume of Production: 10 L

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Direct and Indirect Materials
Total Cost
Price Required (Php)
Raw Cow's Milk Php32/ L 10L 320
Salt Php 10 / 200g 5g 0.25
Animal Rennet Php22000/kg 1g 22
Miscellaneous
Zonrox (Hypochlorite) Php 10 / bottle 1 bottle 10
Dishwashing Liquid Php 12 / sachet 1 sachet 12
TOTAL DIRECT AND INDIRECT
MATERIALS COST 308.75

Manufacturing Overhead
Total Cost
(Php)
Gas 100
Fare to Junction
jeepney 6
Fare to Calauan
jeepney 15
Fare to Lamot2
Tricycle 8
Fare to Los Banos
jeepney 23
Fare to Women’s Dorm
jeepney 8
TOTAL MANUFACTURING
OVERHEAD 160

Appendix 8
RICOTTA CHEESE RECIPES
Breakfast Blueberry Ricotta Pancakes
Ingredients
6 tablespoons flour, all-purpose

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1/2 cup pastry flour, whole wheat
1 teaspoon baking powder
1/4 teaspoon baking soda
1/2 teaspoon nutmeg ground
1 teaspoon sugar or honey
3/4 cup ricotta cheese low-fat
2 large eggs or you can 1 large egg and 1 large egg white
1/2 cup buttermilk, low-fat or non-fat
1 tablespoon lemon juice
1 teaspoon lemon zest freshly grated
2 teaspoons olive oil divided, or canola oil
3/4 cup blueberries fresh or frozen, not thawed
Directions
Sift all-purpose flour, wheat flour, sugar, baking powder, baking soda and nutmeg in a
small bowl.
Mix well ricotta, egg, buttermilk, lemon juice and zest in a large bowl until smooth. Stir
the dry ingredients into the wet ingredients until just combined.
Brush a large nonstick skillet with 1/2 teaspoon oil or coated with cooking spray and
place over medium heat until hot.
Cook 2 pancakes at one time, using a generous 1/4 cup of batter for each pancake, pour
the batter for 2 pancakes into the pan, sprinkle blueberries on each pancake and cook
until the edges are dry and bubbles begin to form, about 2 minutes.
Flip the pancakes and cook until golden brown, about 2 minutes more. Repeat with the
remaining oil, batter and berries, adjusting the heat as necessary to prevent burning.
Serve these light pancakes with Chunky Blueberry Sauce, maple syrup or honey.
Sprinkling the berries on top of the cooking pancakes ensures even distribution.
Keep finished pancakes warm in a 200°F oven, if desired, while cooking the rest.
Baked Tomato and Cheese Shells
Ingredients
40
grams pasta shells, jumbo
0
50
grams ricotta cheese about 2 1/2 cups, prefer low-fat
0
parmesan, parmigiano-reggiano cheese,
1/2 cup
grated
1 cup mozzarella cheese shredded, prefer low-fat
1 large egg
80
grams tomatoes, canned 2 cans, chopped
0
25
grams cherry tomatoes halved
0

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3 cloves garlic chopped and sliced
vegetable, or you can use chicken
1/2 cup stock
stock
1 x salt and black pepper to taste

Directions
Preheat oven to 400F.
Cook the pasta in a large saucepan of salted boiling water for 8 minutes.
Drain and rinse under cold running water. Set aside.
Mix well the ricotta, parmesan, mozzarella and egg in a medium ball. Set aside.
Stir in the canned tomatoes, cherry tomato, garlic and vegetable stock, salt and pepper to
taste in a large baking dish, and combine well.
Spoon the cheese mixture into the pasta shells and set on top of the tomato sauce in the
baking dish.
Bake for 25-30 minutes or until the cheese is golden, and shell starts brown. Or you can
use broiler at the last 2 or 3 minutes.
Cool 2 or 3 minutes, then serve warm.

Mana's Spinach Ricotta Roll


Ingredients
12 ounces spinach cooked
2 cups ricotta cheese
1 tablespoon parsley leaves chopped
3 each egg whites
1 cup flour, all-purpose
1 1/3 cups water
1/2 cup parmesan, parmigiano-reggiano cheese, grated finely grated
2 cups marinara sauce
1 x olive oil
Directions
Preheat oven to 325 degrees F.
Cook or thaw spinach and squeeze dry.
Season with a little salt and pepper; set aside.
Mix ricotta cheese with grated Parmesan cheese and chopped parsley; set aside.
Mix together egg whites, flour and water, then beat with a wire whisk to get rid of lumps.
Lightly coat a crepe pan with olive oil and heat to medium.

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Ladle 2 1/2 T crepe batter into heated pan. The crepe batter should lightly cover the
bottom of the pan in a thin layer.
Tilt pan to cover evenly.
When edges of crepe turn lacy and brown and crepe is cooked through,remove crepe and
stack on a plate.
Continue until all the batter is used.
When the crepes are cooked, assemble the rolls: spoon 2 rounded T of ricotta cheese
mixture and 1 T spinach mixture on each crepe.
Fold or roll each crepe to seal in mixture.
Place rolled crepes in a greased rectangular casserole dish.
When the pan is full, spoon marinara sauce over crepes.
Bake at 325 degrees F. for 15 to 20 minutes.
Serve with grated Parmesan cheese.
If you don't have a crepe pan, you can use a small (6-inch) non-stick frying pan. You can
make your own marinara sauce, or use a prepared marinara or spaghetti sauce.
Feel free to sprinkle some extra cheese on top before baking.

RICOTTA CHEESE PIE


Ingredients
1 lb. ricotta cheese, room temperature
2 pkg. (8 oz.) cream cheese
1 1/2 c. sugar
4 eggs
1/2 tsp. lemon juice
1/2 tsp. vanilla
3 tbsp. cornstarch
3 tbsp. flour
1/4 c. melted butter
1 pt. sour cream

Directions
Blend ricotta cheese and cream cheese well. Blend in sugar. Beat in eggs, one at a time.
Add vanilla, lemon juice, cornstarch, flour and butter. Fold in sour cream and blend well.
Pour into 10 inch buttered springform pan. Place in cold oven and turn heat to 325
degrees. Bake 1 hour. Do not open oven door; turn off oven and leave until cool at least 2
more hours.

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RICOTTA CHEESE CAKE
Ingredients
1/4 c. sugar
1/4 c. melted butter
1 c. graham cracker or vanilla wafer crumbs

Add sugar and crumbs to melted butter and press into bottom and sides of a 9 inch
buttered springform pan. Bake for 7 minutes at 350 degrees.
FILLING:
1 lb. ricotta cheese
1 c. sour cream
3 eggs
3/4 c. sugar
1 tsp. vanilla
1/4 tsp. cream of tartar
1 lemon, grated rind
Directions
Cream ricotta with sour cream until smooth. Add 3 egg yolks, sugar, vanilla and grated
rind of lemon. Beat for 30 seconds to 1 minute. Beat egg whites with cream of tartar,
until soft peaks form. Fold egg whites into cheese mixture (DO NOT BEAT) and pour
into cooled crust.
Put baking dish filled with boiling water on bottom shelf of oven. Bake 1 hour at 300
degrees. Turn off heat and leave in oven 30 minutes. Open oven door and let it cool in
oven. When cool, remove sides of pan and refrigerate at least 3 hours before serving.

Source:
• Ricotta Cheese-- http://www.cooks.com/rec/search/0,1-0,ricotta_cheese,FF.html
• Recipes for Ricotta-- http://recipeland.com/search?q=RICOTTA

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