Chapter IManagement StudyA. Management of the ProjectKakao toh, Grafted Cacao Seedling Nursery is a project in which its primary concern is the production of grafted cacao seedlings that will be sold as planting materials. In order for this to happen, the following undergraduate students, studied the different aspects of the project namely Beren, Reden B. for the Management Study, Cominguez, Rachel Marie L. for the Market Study, Grande, Jenny A. for the Technical Study, and Bellen, Jenane May G. for the Financial Study. A.1.Type of Business Organization The proposed project will be in a form of a partnership. Partnership is an arrangement in which parties agreed to cooperate to advance their mutual interest. In this case, the proponents will be the partners who will contribute equally to a common good. Figure 1 shows the organizational chart that will be observe in the business.The proposed project will be manage by the General Partner as the manager and the rest will become the Limited Partner who will contributes capital only. It will also need a Production officer, five nursery workers and two drivers who will be responsible for the day-to-day operation of the project.

Figure 1Organizational ChartGeneral Partner (Manager)

Limited Partner

Production Officer

DriversNursery Workers/ Grafters

Figure 1 shows the organizational chart that will be observe in the business.The proposed project will be manage by the General Partner as the manager and the rest will become the Limited Partner who will contributes capital only. It will also need a Production officer, five nursery workers and two drivers who will be responsible for the day-to-day operation of the project.

Table 1 shows the duties of each personnel with respect to their positions and qualifications. Table1 Positions and DutiesUnit Management PersonnelTime to be Devoted to the Project DutiesQualificationsCompensation

Manager Permanent

Assumes direct responsibilities and accountability of business operation and administration. Continuously develops ways and means of carrying out tasks more efficiently and effectively in their project. Communicates with the Production Officer for the update of the business operation. Maintains cooperation and productivity of the business. Has a college degree in Business & Agriculture. Has technical expertise in managing cacao nursery Hardworking, honest, sincere and committed to work Php. 12,000.00 per month

Production Officer Regular Plans, organizes, directs, controls, motivates, trains and effectively communicate with workers. Conducts regular monitoring and projects status, checkup of tools and equipment and keep the nursery workers informed of all Events and developments of the business. Has a college degree in Agriculture. With full knowledge in grafting cacao seedlings. Has a technical know-how in the three methods of grafting cacao. Hardworking, honest, sincere and committed to work. Php. 10,000.00 per month

Table 2 shows the skilled labors needed in the proposed project with their qualifications.Table 2 Labor RequirementLabor Skills RequiredNumber of Labor RequiredQualificationsCompensation

Nursery Workers/ Grafters5 High school or college graduate Has the full knowledge & expertise in managing cacao nursery & keeping records Has the technical know-how in the three methods Hardworking, honest, sincere and committed to work Php. 6,000.00 per month

Drivers2 At least high school graduate Has Professional drivers License Honest, sincere, hardworking and committed to work Has the technical know-how in the three method of grafting. Php. 6,000.00 per month

A.2. Recruitment ProgramThe proposed project will hire its Production Officer from Bicol University agriculture graduate. As for the nursery workers and drivers, they are coming from the residence of Sitio Nagsipit, Tabaco City. A job hiring will be conducted in the Barangay Hall but only five nursery workers and two drivers will be hired.A.3. Training ProgramThe nursery workers and drivers will be under the Production Officer. He will be in charge in training the newly hired workers. The drivers are also part of the operation in the nursery, not only in the delivery of the seedlings but also in the daily activity inside the nursery because they are included in the training on the methods of grafting.A.4. Fringe BenefitsIn every business has its own way to motivate their employees. The project will grant benefits to the employees like clothing allowance for nursery workers and drivers, 13th month pay and overtime pay in which it is 25% of the salary per hour rate.A.5. Facilities The business compound is compose of the Office, employees quarter, nursery shed and garage. There is a separate comfort room for the manager and the employees. Furthermore. The Office building is approved by the BFP for safety. B. Project Timetable and ScheduleFigure 1 shows the activities involved and the time allocated to each activity. It shows that it will take six months for the project to materialize. One month is for project conceptualization. It will take two months to gather data and three months for making the feasibility study. After preparing the feasibility study, it will take another two months to acquire funds for the project. Preparing the plant site and securing licenses will take one month. It will also task one month to procure the tools needed. Finally, at the end of the year, implementation and monitoring of the project will concern.

Chapter IIMarket StudyA. DemandA.1. Historical Demand Table 3 shows the area planted with cacao in the Bicol Region from the year 2000-2004. It shows that there is a continuous expansion of potential land area used for planting cacao trees in the region.Table 3Area Planted With Cacao(Region V, 2000-2004)YearArea Planted (hectare)

2000344

2001344

2002344

2003347

2004355

Source: BAS

Table 4 presents the historical average of the annual demand for cacao seedlings in Region V for the past five years. The data used is Bureau of Agricultural Statistics (BAS) for the area planted in Bicol Region and the plant capacity per hectare which is 920 trees as computed for the demand for each year. It shows that for the past three years the demand for seedlings is constant and it has increased in the next two years. It is assumed that there is a corresponding increase in the demand for seedlings in relation to the continuous expansion of potential land area for cacao planting in the region. It proves that the demand for cacao seedlings will continue to increase in the next succeeding years.Table 4Historical Demand for Cacao Seedlings(Region V, 2000-2004)YearTotal Demand (Seedlings)1

2000316 480

2001316 480

2002316 480

2003319 240

2004326 600

1Appendix AA.2. Projected DemandTable 5 shows the projected demand for cacao seedlings in the Region V for the year 2005-2019. The project is based on the computation of the projected expansion of land area suitable for cacao farming in the region. There is an increasing demand for cacao seedlings, which is favorable to the proposed project.The Arithmetic Straight Line Method was used to determine the projected demand. The factor considered in using the method is that the proposed project will operate at full capacity. This means that the project is selling the product at the maximum production but only 25.30% of the demand are supplied.

Table 5 Projected Demand for Cacao Seedlings (Region V, 2005-2019)1YearTotal Demand (Seedlings)1

2005329 130

2006331 660

2007334 190

2008336 720

2009339 250

2010341 780

2011344 310

2012346 840

2013349 370

2014351 900

2015354 430

2016356 960

2017359 490

2018362 020

2019364 550

1 Appendix AA.3. Current and Potential BuyersA good quality grafted cacao seedlings grown in nurseries are the best planting materials for high-yielding and productive cacao trees. Grafted seedlings offer true-to-type plant, which improve the production of high quality and internationally cacao beans.The project mainly focuses on the propagation and selling of four month old grafted cacao seedlings with at least eight mature leaves as planting material. The users of the product are the cacao farmers or coconut grower in the Bicol area like Mr. Esflana of Sto. Domingo who owns a one hectare cacao farm. (Appendix B)B. Supply There is no data available for the historical supply of cacao seedling because there has been no existing cacao nursery in the Bicol region that is concern with selling cacao seedlings as planting materials. Cacao growers and coconut farmers in the region are accustomed to planting cacao seeds directly in the field, hence, they are facing problems in looking for seedlings that can be readily planted to become productive trees.It shows that the great demand for cacao seedlings is not meet. This indicate that the proposed project is feasible since it will be the first cacao nursery in the region that will sell seedlings to meet the great demand.C. Competitive positionThe proposed project will be the first cacao nursery in the Bicol Region.The current price of the seedlings of the nurseries in the country particularly in Davao and Laguna is Php. 30.00 each.The introductory price of the seedlings will be Php. 35.00 each. It is 17 % higher than the prevailing price offered the competitors outside the region due to the difference between the sold seedlings they offer. Furthermore, the projected price will increase 5% annually together with the continuous rise in the prices of farm inputs as based on cost-plus pricing. C.1. Quality of the ProductThe project competitors produces cacao seedlings grown mainly for its beans. A tree planted by seeds will bear fruits after four to five years. It will yield 50-70 pods per year. Each pod contains 40-60 beans. While the proposed project will engage in the production of grafted cacao seedlings. It will sell a five-month old, 20-40cm tall grafted seedlings as planting materials. The seedlings will have at least 8 mature leaves with more than 20 cm. scion shoot growth, with no twisted stems, bent collars or bent roots planted in a 30cm x 10 cm black plastic bag. Grafted cacao seedlings offer true-to-type seedlings which achieve earlier higher quality yields. A grafted cacao tree will bear fruit within one and half to two years. It will yield to 100-150 pods per year which has 70-90 beans. Trees planted by seeds and by grafting have the same average life span of 35 years, underlying the principles of equal management and planting conditions.

Plate 1Grafted SeedlingsC.2. Marketing ProgramKakao Toh, Grafted Cacao Seedling Nursery is a firm mainly operates to produce high quality cacao seedlings. In order to retain the quality, the nurseries are built to stores and keep harmful pest and direct sunlight. Furthermore, the firm has a delivery unit in which there are two drivers who are alternately do the task. They are in charge to deliver the seedlings safely to the customers and collect payment.The firm sells its products by accepting orders through walk in customers, phone calls and online ordering. It accepts payment during delivery and installment basis with down payment which is at least 35% of the Total Order Cost. Furthermore, payments for the succeeding months can be deposited to BPI. C.3. PromotionA signage KAKAO TOH GRAFTED CACAO NURSERY will be made and display above the entrance gate of the nursery to promote the entity. This is shown in the Plate 3.

Plate 3The Signage for the ProjectThe nursery will be advertised through the internet, in the regional newspapers, and local radio stations. The project will also conduct seminars for cacao farmers in the region related to the methods and practices on the proper way of transplanting cacao seedlings and how to improve the income from the cacao trees to encourage sale. This will be done quarterly.C.4. Market Problems A farming type of business entails more risks, either natural or manmade. These problems can decrease the production of seedlings and affect the sales of the business. Therefore, these problem are inevitable, so the project must be ready to see to it that these problems are prevented. The following are the problems that the business might encounter and the corresponding preventive measures the business could undertake to eliminate these risks:1. Typhoon. Secure and strong nursery sheds with strong frames and hard foundation must be built. The simple style nursery design will be followed but steel poles and cement posts as frameworks will be used. Black cloth that is elastic and adjustable will be used as shades to be built on both sides of the nursery and supported with aluminum tie wires for roofing.2. Flood. Roofing with steel poles as partitions supported with aluminum wire should be used as based for seedlings.3. Pests and Diseases. The attack of pests and the spread of diseases could be avoided by enclosing the nursery with a thin black cloth on the roof and on both sides. The right application of recommended and trusted high grade pesticides and insecticides could be used in case these risks are inevitable. A quarantine area will be built to isolate or remove the infected seedlings. Proper handling of tools will be observed, including the purchase of alcohol as disinfectant.4. Increasing prices of fertilizer and pesticides. Organic fertilizer and the use of compost pit and bio-fertilization will avoid unnecessary expenses in dealing with the increasing prices of fertilizer and pesticides.To eliminate the risks that might be faced in the operation, preventive measures must be followed. With this, the project will determine if it can afford this project would entail.The proposed project has the capacity to cope with the cost of these risks by observing preventive measures, having a flexible budget system and a higher amount of contingency allowance, which constitutes 5% of the total assets, working capital, and pre-operating expenses of the entity.D. Contribution to Philippine EconomyKakao Toh, Grafted Cacao Seedlings Nursery is a firm that produces high quality cacao seedling which can be sold as a planting material for all cacao farmers in the Bicol Region. It helps farmers in the region earn profit from cacao trees along with the pooling of employment of five nursery workers and two drivers. It also contributes 30% of net income as business tax to the government. Lastly, it caters to the need of the country for minimization of cacao beans importation that would give a potential tax return to the government.

Chapter IIITechnical StudyA. Products Cacao "Theobroma cacao" is a small (4-8m or 15-26 ft tall) evergreen tree in the family of Sterculiaceae adapted to the climate of the deep tropical region. It is a tree crop that is highly suitable under different production system like monocrop, intercrop, and agro forestry with an effective fruit bearing life of 30 years. Planting of cacao is considered as an economic powerhouse that has increasingly become recognized for its potentially positive environment role (cacaoweb.net).Raising cacao in the nurseries is one way of raising healthy planting materials. It will make cacao become pest free and grow robustly. It enhances resource use efficiently and minimizes harmful effects of inappropriate water or nutrient since cacao seeds are sensitive to nutrient imbalance and toxicity.The most common way of propagating cacao is by seeds. Planting by seeds will help preserve genetic diversity among crops. A tree planted by seeds will bear fruits after four to five years. It will yield 50-70 pods per year. Each pod contains 40-60 beans. The other way is by vegetative propagation. It is a technique used to produce a cloned plant usually done by side grafting, top grafting or patch budding. Grafted cacao seedlings offer true-to-type seedlings which achieve earlier higher quality yields. A grafted cacao tree will bear fruit within one and half to two years. It will yield to 100-150 pods per year which has 70-90 beans. Trees planted by seeds and by grafting have the same average life span of 35 years, underlying the principles of equal management and planting conditions. Any tree, as long as it is healthy, with pods of the right age and with good quality seed fan be used as a source of rootstock. The cacao plant raised from seed to become the base or anchor from which the scion is grafted (Plate 1). The scion is the bud wood stick or bud patch collected from an accredited budwood garden used to graft onto the rootstock (Plate 2). It will offer a true-to-type seedling, which achieves earlier higher quality yields. Thus, a genetic copy or clone of an improved cacao tree is produce. Plate 1 Plate 2 Seedling Rootstock Budwood

At present Cacao's main use is as a source material for Cocoa powder and Chocolate. A by-product of this multi-billion dollar industry is the cocoa butter, expressed from the roasted seeds. Cacao butter is heavily used in the cosmetic and pharmaceutical industries. Cacao butter is used by the pharmaceutical industry, though some herb shops and pharmacies still supply Cacao seed shells, sold as a diuretic tea. Yet, Cacao has some interesting properties that might warrant further research. Cacao pigment, which is extracted from the husks, has shown anti-HIV properties.B. Manufacturing ProcessThe proposed project will involve the processes of a nursery establishment and management, like the preparation of potting mixes, seed sowing, and grafting and seedling distribution. The farming process chart is presented in figure 2. B.1. Nursery ConstructionIn constructing the nursery, the following guides are followed:1. Mark out and clear the area.2. Mark out the four corners, the entrance, fence line and water supply inlet.3. Remove trees, rubbish and other obstacles.4. Plough the land and level it off. Leveled off land facilities good management.5. Provide 2 m access pathway through center.6. Install drain and drain outlets.7. Install perimeter fence.8. Check, repair. Or install water supply. An electroconductivity meter can be used.9. Mark out positions and install nursery poles with wire frame as framework.10. Place a black shade cloth side roof for sun, wind and rain protection.11. Mark out nursery beds and access pathways by ropes.12. Provide area for planning and record keeping.B.2. Preparing the Potting MixesPlotting BagsIt is recommended to plant seeds directly in the bags. Whose size will depend on the duration the seedlings will stay in the nursery. Table 6 shows the criteria that can be used to determine the bag size. Plastic bags with perforations are preferred because they are durable, easy to maintain, and provide drainage that will make soil moist enough for good seedling growth. The bag must be able to withstand the hazards of transportation like wear and tear in case the seedlings remain for more than four months in the nursery.Table 6Bag DimensionsMonths in the NurseryLength (inches)Width (inches)Gauge (unit)ColorWeight of Bag & Soil (kg)

>3107150Black2.7

4-5128200Black4.7

61610250Black9.0

Figure 3

Plotting Soil A soil-based plotting mixes can be used to ensure seed viability. It is composed of 10% dried manure blended with 10% organic matter and 80% is the sieved soil. Organic matter can be rice husk, cacao pod husk, coffee pulp, banana peel trash or sugar cane bagaas. These can be collected at the site. Sieved soil is a top soil which can supply all the major and minor nutrient elements for a period of 45-60 days with good texture and structure. It is a soil free of lumps, stone, and other small pieces. A cement mixer can be usd to thoroughly mix the mixtures.Sterilization. This is eliminating potentially harmful disease pathogens and pests that exist in the soilSolarization. The spreading mix onto clear plastic sheets and covered with clears plastic and leaving it under the sun for a day or two.B.3. Preparation of SeedsSeed SelectionFor rootstock, any tree can be used as source of seeds. Pods will be bought from cacao growers in the region. The number of pods required can be calculated by dividing the number of seeds required by 40 average bean yield/pod.The steps in seed preparation are:1. Selecting pods that are ripe and healthy. Pods 3-4 weeks from harvesting can be used. This can result to seedlings with maximum vigor and foliage production. Pods at this stage will be full grown with an approximate length and width of sixth inches and three inches respectively. The color of the pod will be green or brown depending on the type as they have not started changing color.2. Open the pods using a wooden mallet.3. Remove seed from pods and separate seeds from the placenta and the pulp.4. Discard any flat seed, damaged seed or very small seed. 5. Rub the seed in sawdust or coconut fiber to remove the pulp outside of the seeds.6. Wash the seeds in water and drain.7. Place the seeds on to a tray in a shaded and cool area, protected from wind and rain.

Plate 3Healthy PodsB.4. Seed Pre-GerminationPre-germinating the seeds before plating into bags will render better results.1. Places the seeds in a single layer on clean jute bags out of the wind, sun or rain. Cover them with another jute bag.2. Record the date when the seeds were placed in the tray and the date when germination started.3. Every day for four days, inspect the seeds to look for the ones that have germinated. When a white button emerges at one end of the seeds, they can be planted to the bags straight away. Discard seeds with long shoots or pig tails. They can result to stem and collar deformation and root problems.

Plate 4Seeds with Pig TailsB.5. Seed SowingPlace the pre-germinated seeds, with the root tip pointing down, into the potting mix in the bag. Make a small hole about 1 cm deep for this leave about half of the seed poking out of the potting mix. Fine sprays are used to water the potting mix.Seedling Losses. Fifteen percent of the seeds planted are expected to be of inferior quality, so they are removed.Culling. This is removing the rejected plants 14 days after planting, repeated regularly. Post grafting culling includes seedlings which have seedling blight, are defoliated, with weak stems, underdeveloped leaves, few leaves and those that appear to be runts.B.6. Budwood CollectionBudwood must be collected from accredited budwood garden. Make sure that the budwood is of the right age and thickness for the rootstock. They should be properly selected from healthy trees. They must be used within two days from collection, stored and transported in moist and cool condition.B.7. GraftingThere are three methods of clone production, namely: side grafting, top grafting and patch building. Side grafting, is the most reliable method. It involves fusing the budwood stick (usually one bud with one-third leaf intact) in a narrow cut low on the stem. The budwood must be green or brown in color. The method of side grafting will be observed in the nursery.

Plate 5Side Grafted Method

The following are the steps for side grafting:1. Preparing the plant. Plants (rootstock) are prepared by tipping and trimming the leaf. The typical height is approximately 20 cm.2. Budwood stick or the scion, is inserted into the rootstock. The scion is bound with grafting tape.3. Build grafting tents. Clear, clean plastic bags measuring five sq. m. are used for 400 plants and 15 sq m for 1200 plants. Make sure that the tent is well sealed to keep the air humidity in the tent. Plants are watered thoroughly before grafting and placing them inside the tent. A second layer shades is installed over the tent in addition.To ensure grafting success in the nursery, the following should be observed:1. Perform the right way of budwood collection.2. Use a sharp knife exclusively for grafting.3. Clean the knives and secateurs and other tools with alcohol before and after grafting to minimize disease transfer.4. Do not place tools on the ground.5. Avoid grafting during very hot and very dry periods.6. Rootstock must be at the right age and condition for grafting.7. Manage shade and water carefully.Plants stay in the closed tent for 21 days and are allowed to rest for 10-15 days inside the open tent. The grafted seedlings need to stay for three months with the nursery after grafting.Marking Grafted SeedlingsThis is done by making tags on plant bags or on the stems of the plant for identification. It will serve as a basis for plant recording and distribution. It is also important to have a white board system to record row location, number of bags per row, dates planted, dates grafted, plants culled and others. This is a good and efficient record keeping, management, organization and planning. It must be displayed at the nursery for easy reference.B.8. Plant TransportionA tri-wheeled truck will be used for seedlings transport. Loading of plants will be on single layers with wooden partition between the top and bottom layer to avoid crushing those at the lower layer. They will be covered with thin cloth to protect them from wind and sun exposure.B.9. Farming ScheduleFigure 4 shows the different activities done in raising seedlings in a nursery, together with the corresponding timetable for each activity. It takes one week to prepare and sterilize the potting mixes. Bag filling and collecting of pods can be done simultaneously for one week. It takes three to seven days for the seeds to germinate. The pre-germinated seeds will be planted in the bags filled with soil and will be grown for two months. Culling will be done two weeks after planting and repeated regularly for two months. Another week will be for the preparation of the rootstock for grafting, at the same time, collecting for budwood stick. Then, grafting follows which will be done for one week. Grafted seedlings will be covered in the tents for three weeks. There will be an additional two weeks for plant resting and one week for hardening-off of plants before transport. Planting will start on the month of January of the operating year and will end at the 7th month of the fiscal year.B.10. Culture and Maintenance RequirementThe proper way of culture and care must be observed in the nursery from the preparation of planting media, seed propagation, grafting, up to plant distribution.

B.10.1. Controlling pH of Potting MixThe best pH range for cacao is 6-7. If pH is < 5.5, a 10 g builders lime will be added in 10 liters of water, and 100 ml of the mixture will be added into the pot. If the pH is >7.5, iron sulfate will be added at 3 grams per liter of water and flood each pot. A field test kit will be used to check for pH level.

Plate 9Field Test Kit

B.10.2. Water Application A watering will be done in the morning and afternoon everyday wetting the top 7-8 cm or 5% of the seedlings bag volume. One day before grafting, plants are fully watered. Plants are also carefully watered after grafting to prevent the leaves from wetting. When plants are mature, watering will be done every other day. Careful watering will ba observed to prevent seedling damage and disease in the nursery.

B.10.3. Plant Pests and DiseasesThe most common pests are insects such as thrips, mites, aphids, and mirids which cause leaf and stem distortion and leaf drop. This can be treated by foliar sprayings for the first eight weeks and by adding natural insecticides. Diseases in the nursery include seedling blight, seedling rots and vascular streak dieback. Controlling weeds can be done by hands and by spraying the plants with insecticides.B.10.4. Fertilizers ApplicationIf the soil used in the nursery meets the criteria for good potting mixes, then the used of fertilizers can be minimized. 15 g of 14-14-14 or 30 g of ammonium sulfate is applied weekly to the seedling. If after two months from planting the seedlings show signs of micronutrients (NPK) deficiency, then each bag will be treated with 10g of complete fertilizer (12-24-12 or 10-15-10).B.10.5. Shade Management To ensure healthy seedlings, the sides and roof of the nursery are checked if they are properly shaded. It should have an initial shade of 80% and after the first whorl of leaves has hardened, the shade shall be reduced gradually. Reduce light to 50% from six to eight weeks from germination. Grafted seedlings are under the tent for a month with two layers of shade cloth is removed. Removed shades from seedlings two weeks before transport.

C. Plant size and Production ScheduleThe site for the nursery can accommodate 120 000 plants with 40 plants per sq m nursery floor. Bags will be arrange in beds with a width of 2.5-3 ft. The length of the seedbed is equal to the length of the nursery. There will be 1.6 ft gap between beds. Each bed will contain six bags in a row 6.9 ft space between seedlings. A 2m. access pathway will be allocated at the center. There will be an additional 25 sq. m. for potting mix preparation, bag filling, work planning and recording and other nursery related operation.Within the operating year, planting and harvesting will be done seven times. Twenty thousand seeds will be planted every month. Of the 20,000 seeds planted, a 95% germination rate or 19,000 seedlings is expected. From these, 10% are culled leaving 17,100 seedlings. Then, 80% success rate or 13,680 seedlings will be obtained after grafting. There will be a 5% or 685 seedling loss reducing the number to 12,996. A monthly production of 12,996 seedlings is expected starting June of the harvest period. The proposed project will yield to 90,972 yearly (Appendix D).D. Tools and EquipmentTable 7 shows the tools needed for the whole farming activity. It includes the tools to be used from seed preparation and propagation, grafting, seedling care and distribution. The equipment used in the nursery is the water pump which is the source of water for watering the seedlings. Tools and equipment requirement also includes those needed in the maintenance of the nursery. Table 7Tools and EquipmentQuantityDescription

1 unitTri-wheel Truck

1 unitCement Mixer

1 unitpH & Electro conductivity Meter (HANNAH)

5 unitsMeasuring Tape (3m, CRESTON)

5 unitsWooden Mallet

5 unitsPruning Secateurs (CRESTON)

5 unitsGrafting Knives

2 unitsSpray Tank

5 unitsWater Can

1 unitWheel Barrow

5 unitsTrowel (8 ELTORO)

2 unitsPail

5 unitsAluminum Trays

2 unitsBolo

E. Plant LocationThe proposed project will be situated at Sitio Nagsipit, Tabaco City which is one of the upland barangays of Tabaco City. The place is characterized with rich fertile soil and it enjoys the refreshingly cool evenings of upland climate. It has pronounced warmness and humidity throughout the year with no distinct dry period but with a very pronounced maximum rainfall from November to January. The terrain is generally flat with an elevation of 5 m. and 13m. Above sea level. The place is a 3000 sq.m land which is highly suitable for cacao nursery.

Figure 5Plant Location

F. Farm LayoutThe nursery should be located in close proximity of the field. This will facilitate easy transfer of seedlings to the permanent site and to water source (Figure 6).Size of the NurseryThe size of the nursery will depend on the following:1. Number of seedlings in the nursery2. Length of time the seedlings will stay in the nursery.3. Number of culls that will be allowed.4. Number of seedling losses.The last two factors will determine the extra space needed to grow the required number of seedlings in the nursery.

Figure 6 Farm LayoutG. StructuresNursery A good choice of nursery design provides an environment that allows cacao seedlings to develop quickly into healthy plants ready for field plating. There are seven nursery design that can be built depending on the materials in the construction and on the budget allocated for the project.The project will employ the simple backyard nursery style. The foundations will be made of bamboo pole and log posts. Barbed wires will be used for the frames and support for the roofs. Black cloth used for roofing purposes.Office BuildingThe office building is built for the purpose of administering and selling of seedlings. It is also for entertaining customers or farmers in assessing the selling of seedlings.Furthermore, the total cost of construction for nursery shed and office building is Php. 222 163.00 and Php. 37 410.00, respectively.H. Raw MaterialsFarm Inputs and SourcesTable 8 presents the farm inputs needed in every cycle production. It also includes the place or stores where they can be bought. Selection is based on their proximity to the nursery to minimize fuel expense and ensure affordability of the input.Table 8Farm Inputs and SourcesQuantityDescriptionSource

500 pcs.Cocoa PodsCacao growers in Albay

17 100 pcs.Budwood StickUP Los Baos, Laguna

1 200 kg.Thiodan ( green label)Sunrise Commodity Tabaco City

48 sacs14-14-14 FertilizerSunrise Commodity Tabaco City

20 000Polyethylene BagsMontex Tabaco city

180 sacsRice HullPalay Farmers in Tabaco

3 420 m.Grafting TapeLucky Educational Supply Tabaco City

I. UtilityA nursery is a farming type of business which requires sufficient amount of fresh water. About 1,800 liters or 1.8 cubic meters will be consumed per day or 720kwh per production cycle converted to electricity by using the 1hp electric water pump. Electricity is also needed for lighting the work planning area of the nursery and the entrance gate.Fuel is of great importance for the transport and collection of farm inputs. An average of 15 L. if diesel is needed in every cycle. The project Utility requirement for one cycle is itemized with its corresponding cost in Table 10.

Table 9Utility RequirementDescriptionConsumption (per cycle)Total Consumption

1 hp. Electric Water Pump720 kw. 6 552.60

Lights384 kw.400.52

Fuel15 L.735.00

J. Waste DisposalThe weeds accumulated during weeding will be used for compost. It will be used to potting soils as organic fertilizers to reduce the expenses allotted for fertilizers and it will be very helpful to the healthy growth of the seedlings. The sacks of fertilizers will be practically utilized as storing medium of the weeds.

Chapter IVFINANCIAL STUDYA. Total Project CostThe business needs Php. 2,997,367.67 to cover the first year production operation. It require to purchase the nursery tools and equipment, water pump for drainage facility, fixtures and furniture, and office equipment. It needs to construct nursery shed for the growing and production of grafted seedling. As for administering and selling of seedlings, the office building requires constructing for entertaining customers or farmers in assessing the selling of seedlings. It will be budgeted for the first year as 25% for fixed assets, 74% for working capital, and 1% for pre-operating expenses. As to the second up to fifth year, the costs are assumed to increase because of fluctuation of prices in the market. The total project cost is presented in Table 10.These are the following financial assumptions before it arrived in the following projections:

1. These cost are set in their prevailing market price 2. The cost of farm inputs, packaging, utilities, advertising and maintenance expense are expected to increase by 5% annually.3. Salaries is remained the same in next five years.4. The cost of renting the land is remained the same in next five years.5. Cost of advertising and maintenance is assumed to increase by 5% annually.6. The selling price of seedlings is projected to increase by 5% annually.7. The fixed assets are depreciated over its useful life in a straight line basis less of its scrap value, if there is.8. Other fixed assets that are fully depreciated must be disposed and acquired another.9. Ending inventory in units is equal to 10% annual production cost. It will be computed based on its farm unit cost.10. 70% of sale is assumed to be collected during the year and the remaining on the other year.11. 70% of purchases (farm inputs, miscellaneous and packaging expense) are to be collected during the year and then remaining on the other year.12. As to the payment of loans, it will be paid after one year of issued loan plus the interest incurred.13. Tax expense is to be paid on the next year.Partners are required to contribute an equal capital of P 150,000.00 each or total of P 600,000.00 as an initial capital of the partnership. The P 800,000.00 is still in application of loan. The total cash of P 1,400,000.00 will be financed the 100% of purchasing and constructing fixed assets, 27% of total working capital and 100% of pre- operating expenses.

Table 10

Partners are required to contribute an equal capital of P 150,000.00 each or total of P 600,000.00 as an initial capital of the partnership. The P 800,000.00 is still in application of loan. The total cash of P 1,400,000.00 will be financed the 100% of purchasing and constructing fixed assets, 27% of total working capital and 100% of pre-operating expenses.

B. Sources of Financing and Amortization ScheduleThe 42.86% of the investment which is P 1,400,000.00 of proposed project will be provided by the partners equal investment and the 57.14% will be borrowed from Land Bank Tabaco Branch as a proposed source. The amount of P 800,000.00 will be borrowed and will be incurred by the 12% interest. This loan is unsecured and is still in process of application. Amortization Schedule is presented in Table 12.Table 11Amortization ScheduleYearPrincipalInterest PayableOutstanding Balance

2015 800 000

2016160 00096 000 640 000

2017160 00076 800 480 000

2018160 00057 600 320 000

2019160 00038 400 160 000

2020160 00019 200 0

It still need a contingent allowances to be finance if there is other expenses to be made, need in addition to fluctuating prices, or uncertain event like typhoons and landslides. It will budgeted as 5% of the total project cost as shown in Table10.

C. Projected Financial Statement C.1. Projected Income StatementThe proposed business a producing seedling entity provided in constructing an income statement of a manufacturing company. In the first year of operation, it earns an income after tax of P 451,934.48. The net income every year incurs a tax of 30%. It is shown in Table 12.C.2. Projected Cash Flow StatementThe 70% of sales will be collected in the first year and will be added in total investment. All other expenses incurred and assets purchased and constructed are paid during the year. The ending balance of cash will be accumulated. The P 50,000.00 of ending cash balance is still on hand and the remaining is deposited in bank. It is shown in Table 13.C.3. Projected Statement of Financial PositionTotal asset for the first year comprises of P 1,678,452.93 of current assets and P 681,383.65 of noncurrent assets or fixed assets. There is a portion of loans to be paid next year that it will included in noncurrent asset. As for the partners capital, there is an equal share of net income after taxes. It is presented in Table 14.

Table 12

Table 13

Table 14

Table 15

D. Financial AnalysisD.1. Safety Analysis

D.2. Profitability Analysis

D.3. Liquidity Ratios

D.4. Leverage Ratios

D.5. Activity Ratios

D.7. Break-even Analysis

The proposed business needs to earn at least a net income of P200,000.00 in a year. It is computed in Table.

The cash payback period is to be computed as follows:

AppendicesAverage Annual increase = Present Year Initial Year No. of Years 1 = 335 Ha 344 Ha 5 -1 = 11 = 2.75 Ha 5

Appendix F

Appendix G

Appendix H

Appendix I

Appendix JPurchase of Office EquipmentQuantityDescriptionPrice

1Computer SetP 22,900.00

Appendix K

Appendix L

1 Fertilizer (per cycle) = 15 g/bag x 20000 bags x 8 sprays=2400000 g/ 1000g/kg= 2400 kg / 50 kg/sack= 48 sacks2 Pesticide (per cycle )= 12 g/bag x 20000 bags =3 Rice Hull (per cycle) = 450 g/bank x 20000 bags = 900000 g/ 1000= 9000 kg/ 50 kg per sack= 180 sacks4 Grafting Tape (per cycle) = 20 cm/seedlings x 17100 seedlings = 342000 cm/ 100 = 3420 m

Appendix M

Appendix N

Appendix O

Appendix P

1 Water ConsumptionNo. of plants x bag volume x 5% watered = volume of water20000 bags x 1.8 L x 5% = 1800 L/ 1000L = 1.8 cu. m./ dayElectric Water Pump (1 hp= 750 watts) ConsumptionDaily Water Consumption: 1.8 cu. m.No. Of Days per Cycle: 120 daysDaily Rate Consumption / No. Of Hours x No. of Days per Cycle1.8 cu. m. / 8 hrs.x 120 days=960 hrs. x750 watts/ 1000 = 720 kw 13.00 (rate) = 9360 per run65520per year

Appendix Q

Appendix R

Appendix S

Appendix T

Appendix V

Appendix WDetermination of Farm Unit Cost

Appendix Y

Appendix Z

Appendix AA

Appendix AB

Appendix AC

Appendix ADBibliography

www.agriskmanagementforum.org/content/major-pest-diseases-cacao-symptoms.

www.bas.gov.ph/agfishtech-home/crops/206-plantation-crops/1277-cacao

www.bicol.da.gov.ph

www.businessdiary.com.ph/2191/cacao-production-guide

www.business.inquirer.net/127335/shortage-of-cacao-both-a-threat-and-an-opportunity

www.cacaophil.org

www.orchid.ph/files/phils-cacao-nursery-manual-2011.pdf

www.pcard.dost.gov.ph

www.secredearth.com/ethnobotany/plantptofiles/cacao.ph

www.slideshare.net/chandankumarka/pest-disease-of-cacao

www.successalliance.org

www.sunstar.com.ph/cagayan-de-oro/business/2013/08/26ph-cacao-growers-urged-step-production-299718

www.thefarmersvoice.org/uk/practical.php

www.thefilipinoentrepreneur.com

www.wikipedia.com

Articles of Partnership

The agreement, made on January 12, 2015 is between Beren, Reden B., Bellen, Jenane May G., Cominguez, Rachel Marie L. and Grande, Jenny A.

1. The above-named persons, all of legal ages, formed a partnership to cooperate under the name of Kakao Toh, Grafted Cacao Seedling Nursery, located at Sitio Nagsipit, Tabaco City. The partnership shall engage in production of grafted cacao seedling which shall be sold as a planting material in the Bicol Region.2. This agreement shall run for a term of ten years, beginning January 12, 2015, or of a shorter term if agreed upon in writing by all partners. 3.The initial investment shall be Php. 150 000.00 equal contribution by each partner. The investment are partnership property.4.The partner having the title of the general partner shall give his time, skill, and attention to the operation of this partnership and shall engage in no other business enterprise unless permission is granted in writing by the other partners.5. The salary of the managing partner shall be Php. 12 000 per month. Neither partner may withdraw cash or other assets from the business without the express written permission of the partner. All profits and losses of the business will be share 25% equally among partners.6. Upon dissolution of the partnership due to the termination of this agreement, the written permission by each of the partners, or the death or incapacitation of one or all partners, a new contract may be entered into by the partners. The sole continuing partner may also purchase the other partners interest in the business at a price that shall not exceed the balance in the terminating partners capital account. The payment shall be made in cash in equal quarterly installments from the date of termination.

The assets of the partnership left after the liabilities are paid will be divided in proportion to the balance in each partners account on that date.

________________________ _______________________ Beren, Reden B. Bellen, Jenane May G.

Date: January 12, 2015 Date: January 12, 2015

________________________ _______________________ Cominguez, Rachel Marie L. Grande, Jenny A.

Date: January 12, 2015 Date: January 12, 2015

CURRICULUM VITAE

Reden B. BerenZone 1 Mariroc Tabaco City09076835144redCPA12@gmail.com

PERSONAL INFORMATIONDate of Birth:November 12, 1993Place of Birth: Tabaco CityAge:20Gender:MaleNationality:FilipinoReligion: Roman CatholicStatus: SingleFathers Name: Tadeo BerenOccupation:CarpenterMothers Name: Angelita BerenOccupation:DeceasedLanguage known:Filipino and English

EDUCATIONAL BACKGROUNDSchool Year GraduatedCollegeDaniel B. Pena Memorial Foundation 2010-PresentZiga Avenue, Tabaco CityHigh SchoolMariroc High School 2006-2010Tabaco CityElementaryMariroc Elementary School 2000-2006Tabaco City

Jenane May G. BellenZone 7 Cobo, Tabaco City09482076428bellen_jenmay @gmai.com

PERSONAL INFORMATIONDate of Birth: May 15, 1995Place of Birth: Baranghawon, Tabaco CityAge:19Sex:FemaleNationality:FilipinoReligion: Roman CatholicStatus: SingleFathers Name:Jose Dante B. BellenOccupation:TechnicianMothers Name:Evangelina G. BellenOccupation:Direct SellerLanguage known: Filipino and English

EDUCATIONAL BACKGROUNDSchool Year GraduatedCollegeDaniel B. Pena Memorial Foundation2011- PresentZiga Avenue, Tabaco CityHigh SchoolTabaco National High School2007-2011Panal, Tabaco CityElementaryTabaco South Central Elementary School2001-2007Ziga Avenue, Basud, Tabaco City

Rachel Marie CominguezZone 3 Panal, Tabaco CityContact No.: 09307501811Email: rmcominguez13@gmail.com

Personal Data:

Age:19 years oldDate of Birth : December 13, 1994Place of Birth: Bacolod, Tabaco CityCivil Status: SingleCitizenship : FilipinoHeight: 5ft 1inWeight : 45 kg.Religion : ChristianGender: FemaleFathers Name: Mario B. CominguezOccupation: Government EmployeeMothers Name : Raquel L. CominguezOccupation: HomemakerLanguage: Bicol, Filipino& English

Educational Attainment:

Tertiary:Daniel B. Pea Memorial College FoundationTabaco CityBachelor of Science in AccountancyJune 2011 Present

Secondary:Tabaco National High SchoolPanal, Tabaco City2007 2011

Elementary:Tabaco Northwest Elementary SchoolPanal, Tabaco City2001 2007

Jenny A. GrandeZone 1 Burabod Malinao Albay09493610540Jennygrande80@gmail.com

PERSONAL INFORMATIONDate of Birth: April 13, 1995Place of Birth: Tarlac CityAge:19Gender:FemaleNationality:FilipinoReligion: Roman CatholicStatus: SingleFathers Name: Jose S. GrandeOccupation:Junior MechanicMothers Name:Mercedes A. GranndeOccupation:HousewifeLanguage known:Ilocano, Filipino and English

EDUCATIONAL BACKGROUNDSchool Year GraduatedCollegeDaniel B. Pena Memorial Foundation 2011-PresentZiga Avenue, Tabaco CityHigh SchoolSaint Rose Catholic School 2007-2011Sta. Rosa St. Paniqui TarlacElementaryOloybuaya Elementary School 2001-2007Oloybuaya Gerona Tarlac

ACKNOWLEDGEMENT

First and foremost, our utmost gratitude to Mr. Rafael Kallos, Ph.D. who shared this insights in our proposal and helped us gain fruitful ideas in pursuing our feasibility study. The researchers are deeply indebted to several generous individuals who help make this study a success. Specific acknowledgement is given hereby to the following person. To the Department of Agriculture for accommodating the proponents and for giving them valuable information for the proposed project.The researchers family, namely: Mr Tadeo Beren and Ms. Cynthia Beren father and sister of Red, Mr. Jose Dante B. Bellen and Mrs. Evangelina G. Bellen parents of JM, Mr. Mario B. Cominguez and Mrs. Raquel L. Cominguez parents of RM, and lastly Mr. Jose S. Grande and Mrs. Mercedes A. Grande parents of Jen, for the love, moral and financial support that helped immensely in accomplishing this task.To our friends, namely: Jovanie Broso, Enrique Caberos, Carmelle Mae Apita, Liezyl Competente, Mildred Gratila, Ivy Apuli, Liezel Balingbing, Jobelle Barcellano and Karen Pramoso who willingly helped us gather information without any cost. This dissertation would not be possible without the guidance and help of several individuals.Above all to God Almighty for all the guidance, strength, knowledge and blessing he bestowed on us.69

Sheet1Appendix FTools And EquipmentQuantityDescriptionUnit CostTotal Amount1unitTri-Wheel TruckP380000.00P380000.001unitCement Mixer35000.0035000.001unitPh and Electroconductivity Meter4010.004010.002unitSpray Tank2520.005040.001unitWheel Barrow1760.001760.00TotalP425810.00

Sheet1Appendix GDrainage Facility Electric Water Pump

QuantityDescriptionUnit CostTotal Amount1unitElectric Water Pump P6500.00P6500.001pc.Fooy Valve 1/2"270.00270.002pcs.G. I. Coupling9.7519.502pcs.G. I. Pipe 1/2 S-20325.00650.002pcs.G. I. Nipple 1/2"x 3"14.0028.003pcs.Teflon Tape 3/4"13.5040.501pc.Straight Elbow 1/2"14.5014.50304ft.Pvc Pipe 1/2"61.0018544.0028pcs.Pvc Elbow 1/2"9.00252.0046pcs.Pvc Tee 1/2"12.25563.5046pcs.Pvc Coupling 1/2"4.50207.0046pcsPvc Male Adaptor11.25517.5046pcsPvc Female Adaptor118.005428.0026pcsPvc Gate Valve 1/2 "118.003068.00SubtotalP36102.50Labor Cost6500.00TotalP42602.50

Sheet1Appendix HFurnitures and Fixtures

QuantityDescriptionUnit CostTotal Amount1unitTable565.00/unitP565.005unitPlastic Chairs300.00/unit1,500.001unitCabinet3,750.00/unit3,750.00TotalP5,815.00

Sheet1Computation of Office Building

QuantityDescriptionUnit CostTotal Amount20bagsCement 275.00/bagP5,500.001cu. m.Gravel238.00/ cu. m.238.001.5cu. m.Sand180.00/cu. M.270.0020pcs.10 mm Steel Bar86.00/pc1,720.0020pcs.8 mm Steel Bar78.00/pc 1,560.005pcs.G. I. Sheet250.00/pc1,250.002pcs.1/4 Ordinary Plywood290.00/pc580.0010pcs.2x3x12 Cocolumber78.00/pc780.0010pcs.2x6x12 Cocolumber100.00/pc1,000.001kg3" Nails55.00/kg55.001kg2" Nails57.00/kg57.001000pcs.Hollow Blocks7.00/pcs7,000.002pcs.Toilet Bowl1,200.00/pcs.2,400.00Other Material5,000.00Labor Cost10,000.00TotalP37,410.00

Sheet1Appendix IComputation of Farm Inputs

QuantityDescriptionUnit costPer CycleAnnually500pcsCacao Pods3.50/pcsP1,750.00P12,250.0020000bagsPolythylene Bag 4"x4"x12"1.00/bag20,000.00140,000.0048sacks14-14-1411220.00/sack58,560.00409,920.001200kgthiodan (green Label)255.00/kg66,000.00462,000.00180sacksRice hull35.00/sack900.006,300.003420mGrafting Tape1.59/5m1,087.567,612.9217100sticksBudwood Stick0.60/stick10,260.0071,820.00TotalP158,557.56P1,109,902.92

Sheet1Appendix JComputation of Packaging Expense

QuantityDescriptionUnit CostPer CycleAnnually4rollsColored Tape: red32.75/rollP131.00P917.004rollsColored Tape: yellow32.75/roll131.00917.004rollsColored Tape:blue32.75/roll131.00917.004rollsColored Tape:orange32.75/roll131.00917.00500bagsPlastic Bags8.00/bag4,000.0028,000.00TotalP4,524.00P31,668.00

Sheet1Appendix LComputation of Maintenance Expense

DescriptionPer cycle rateAnnuallyElectric Water PumpP800.00P5,600.00Triwheel Truck And Cement Mixer800.005,600.00TotalP1,600.00P11,200.00

Sheet1Appendix OComputation of Utility Expense

UtilityDescriptionRated Daily PerTotalAnnuallyCapacityConsumptionCyclePer CycleWaterElectric Water Pump11 hp /750 watts1.8 cu. m.720 kwP9,360.00P65,520.00LightsFlouerescent Lamp220, 40 watts60 watts42.7 kw555.103,885.70FuelTri-wheel Truck15 L735.005,145.00SubtotalP10,650.10P74,550.70Internet Connection3,599.0043,188.00LightsOffice Utility46.8608.404,258.80SubtotalP4,207.40P47,446.80Grand Total14,857.50121,997.50

Sheet12 Lights

LocationQtyCapacityDaily Per RunRatePerAnnuallyConsumptionConsumptionRunWorkstation120 watts2- 3 hrs4.313.0055.90391.30Entrance Gate140 watts8 hrs38.413.00499.203494.40Total - Production555.103885.70Office Utility8 hrs46.813608.44258.8Total1163.508144.50

Sheet1Rent Expense

QtyDescriptionPer cycleAnnually3000 sq.m.Land RentalP12,000.00P36,000.00

Sheet1Advertising Expense

DescriptionAnnuallyAdvertising on Radio, Newspaper and InternetP45000

Sheet1Appendix QPermits And LicensesDescriptionAmountMayor's PermitP1500Health Certificate500Business Licence400Other Fees and Charges500TotalP2900

Sheet1Appendix UProjected SalesYearBeginningProduction EndingSalesSellingSalesInventoryOutputInventory(in seedlings)Price(in Pesos)(seedlings)(seedlings)(seedlings)2015-9097290978187535.00P2,865,625.00201690979097290979097236.753,343,221.00201790979097290979097238.593,510,382.05201890979097290979097240.523,685,901.15201990979097290979097242.543,870,196.21

Sheet1Appendix SProjected Farm Input, Packaging Expense, Miscellaneous Expense

20142015201620172018Miscellaneous ExpenseP3,998.75P4,198.69P4,408.62P4,629.05P4,860.51Farming Inputs1,109,902.921,165,398.071,223,667.971,284,851.371,349,093.94Packaging Expense31,668.0033,251.4034,913.9736,659.6738,492.65TotalP1,145,569.67P1,202,848.15P1,262,990.56P1,326,140.09P1,392,447.10

Sheet2

20152016201720182019Farm InputP1,109,902.92P1,165,398.07P1,223,667.97P1,284,851.37P1,349,093.94Direct labor587,000.00587,000.00587,000.00587,000.00587,000.00OverheadPackaging Expense31,668.0033,251.4034,913.9736,659.6738,492.65Maintenance Expense11,200.0011,760.0012,348.0012,965.4013,613.67Miscellaneous- Production3,014.353,165.073,323.323,489.493,663.96Utility- Production74,550.7078,278.2482,192.1586,301.7590,616.84Depreciation-Production66,109.6566,109.6566,109.6566,347.9866,347.98Rent Expense36,000.0036,000.0036,000.0036,000.0036,000.00TotalP1,919,445.621,980,962.42P2,045,555.06P2,113,615.66P2,184,829.04Production Output9097290972909729097290972Farm Unit CostP21.10P21.78P22.49P23.23P24.02

Sheet1Appendix XComputation of Projected Cash Disbursement1

From2015201620172018201920151,145,569.67*70%P801,898.771,145,569.67*30%P343,670.9020161,202,848.15*70%841,993.711,202,848.15*30%P360,854.4520171,262,990.56*70%884,093.391,262,990.56*30%P378,897.1720181,326,140.09*70%928,298.061,326,140.09*30%P397,842.0320191,392,447.10*70%974,712.97TotalP801,898.77P1,185,664.61P1,244,947.84P1,307,195.23P1,372,555.00

Sheet1

Computation of Cash Collected from Sales

From2015201620172018201920152,865,625.00*70%P2,005,937.502,865,625.00*30%P859,687.5020163,343,221.00*70%2,340,254.703,343,221.00*30%P1,002,966.3020173,510,382.05*70%2,457,267.443,510,382.05*30%P1,053,114.6220183,685,901.15*70%2,580,130.813,685,901.15*30%P1,105,770.3520193,870,196.21*70%2,709,137.35TotalP2,005,937.50P3,199,942.20P3,460,233.74P3,633,245.42P3,814,907.69

Sheet1Appendix XProject Ending InventoryYearInventory (Seedlings)Farm Unit costinventory ( in Pesos)2015907721.10191,524.702016907721.78197,697.062017907722.49204,141.732018907723.23210,858.712019907724.02218,029.54

Sheet1

Projected Accounts Payable

20151,145,569.67x 30%343,670.9020161,202,848.15x 30%360,854.4520171,262,990.56x 30%378,897.1720181,326,140.09x 30%397,842.0320191,392,447.10x 30%417,734.13

Sheet1

Projected Accounts Receivable

20142,865,625.00*30%859,687.5020153,343,221.00*30%1,002,966.3020163,510,382.04*30%1,053,114.6120173,685,901.15*30%1,105,770.3520183,870,196.21*30%1,161,058.86

Sheet1Appendix AADeterminatio of Variable Cost per Unit

YearTotal Variable CostPruuction OutputVariable Cost per Unit20151,850,568.429097220.3420161,913,746.849097221.0420171,980,084.189097221.7720182,049,738.399097222.5320192,122,875.319097223.34

Sheet1Table 16Current Ratio Computation

YearCurrent assetsCurrent LiabiltiesCurrent ratio(a)(b)(a/b)*1002014P1,678,452.93P793,357.10212%20152,167,343.10864,873.74251%20162,691,542.69898,811.46299%20173,305,837.44935,021.21354%20183,987,345.14973,861.23409%

Sheet1Table 17Cash Ratio Computation

YearCash DepositsCurrent LiabilitiesCash Ratio(a)(b)(a/b)*1002015P577,240.73P793,357.1073%2016916,679.74864,873.74106%20171,348,286.35898,811.46150%20181,939,208.38935,021.21207%20192,558,256.74973,861.23263%

Sheet1Table 18Working Capital Ratio Computation

YearCurrent AssetsCurrent LiabilitiesGross CapitalWorking Capital Working capiatl raio(a)(b)( C)Ratio ((a-b)/c)*1002015P1,678,452.93P793,357.10P1,051,934.4884%20162,167,343.10864,873.741,550,446.1684%20172,691,542.69898,811.462,134,846.1884%20183,305,837.44935,021.212,795,330.9285%20193,987,345.14973,861.233,554,827.4985%

Sheet1Table 19Receivable Turnover Rate

YearSalesAccounts ReceivableRate(a)(b)(a/b)*1002015P2,865,625.00P859,687.50333%20163,343,221.001,002,966.30333%20173,510,382.051,053,144.61333%20183,685,901.151,105,770.35333%20193,870,196.211,161,058.86333%

Sheet1Table 20Inventory Turnover Rate

YearSalesInventoriesRate(a)(b)(a/b)*1002015P2,865,625.00P191,524.701496%20163,343,221.00197,697.061691%20173,510,382.05204,141.731720%20183,685,901.15210,858.711748%20193,870,196.21218,029.541775%

Sheet1Table 21Turnover Rate of Fixed Assets

YearSalesFixed AssetsRate(a)(b)(a/b)*1002015P2,865,625.00P681,838.65420%20163,343,221.00606,976.80551%20173,510,382.05532,114.95660%20183,685,901.15464,514.69793%20193,870,196.21389,343.58994%

Sheet1Table 22Fixed Asset Ratio

YearFixed AssetEquityRatio(a)(b)(a/b)*1002015P681,838.65P928,934.4873%2016606,976.801,429,446.1642%2017532,114.952,004,846.1827%2018464,514.692,675,330.9217%2019389,343.583,402,827.4911%

Sheet1Table 23Ratio of Fixed Assets To Equity Plus Fixed Liabilities

YearFixed AssetEquityFixed LiabilitiesRate(a)(b)( c)(a/(b+c))*1002015P681,838.65P928,934.48P640,000.0043%2016606,976.801,429,446.16480,000.0032%2017532,114.952,004,846.18320,000.0023%2018464,514.692,675,330.92160,000.0016%2019389,343.583,402,827.4911%

Sheet1Table 24Debt Ratio Computation

YearTotal LiabilitiesTotal AssetsDebt Ratio(a)(b)(a/b)*1002015P1,433,357.10P2,360,291.5861%20161,344,873.742,774,319.9048%20171,218,811.463,223,657.6438%20181,095,021.213,770,352.1329%2019973,861.234,376,688.7222%

Sheet1Table 25Current Liabilities Ratio

YearCurrent LiabilitiesEquityRate(a)(b)(a/b)*1002015P793,357.10P928,934.4885%2016864,873.741,429,446.1661%2017898,811.462,004,846.1845%2018935,021.212,675,330.9235%2019973,861.233,402,827.4929%

Sheet1Table 26Computation of Net Income to Gross Capital

YearNet IncomeGross CapitalRate(a)(b)(A/B)*1002015P451,934.48P1,051,934.4843%2016623,511.681,550,446.1640%2017705,400.022,134,846.1833%2018790,484.742,795,330.9228%2019879,496.573,554,827.4925%

Sheet1Table 27Ratio of Net Profit to Equity

YearNet ProfitEquityRate(a)(b)(a/b)*1002015P451,934.48P928,934.4849%2016623,511.681,429,446.1644%2017705,400.022,004,846.1835%2018790,484.742,675,330.9230%2019879,496.573,402,827.4926%

Sheet1Table 28Turnover Rate of Gross Capital

YearSales (a)Gross Capital (b)Rate (a/b)*100

2015P2,865,625.00P1,051,934.482.724147800520163,343,221.001,550,446.162.156296094820173,510,382.052,134,846.181.644325517620183,685,901.152,795,330.921.318592057820193,870,196.213,554,827.491.0887156187

Sheet1Table 29Ratio of Net Profit to Net sales

YearNet Profit (a)Net Sales (b)Rate (a/b)*100

2015451,934.482,865,625.0016%2016623,511.683,343,221.0019%2017705,400.023,510,382.0520%2018790,484.743,685,901.1521%2019879,496.573,870,196.2123%

Sheet1Table 30Ratio of Gross Cost to Gross income

YearGross CostGross IncomeRate(a)(b)(a/b)*10020151,727,920.821,137,704.18152%20161,974,789.961,368,431.04144%20172,039,110.281,471,271.77139%20182,106,898.571,579,002.58133%20192,177,658.091,692,538.12129%

Sheet1Table 31Profit Margin in Sales Computation

YearsProfit after TaxesSalesRatio

2015451,934.482,865,625.0016%2016623,511.683,343,221.0019%2017705,400.023,510,382.0520%2018790,484.743,685,901.1521%2019879,496.573,870,196.2123%

Sheet1Table 32Calculation of Return on Total Asset

YearNet after TaxTotal AssetRatio

2015451,934.482,360,291.5819%2016623,511.682,774,319.9022%2017705,400.023,223,657.6422%2018790,484.743,770,352.1321%2019879,496.574,376,688.7220%

Sheet1Table 33Calculation on Return on Equity

YearNet after TaxEquityRatio

2015451,934.48928,934.4849%2016623,511.681,429,446.1644%2017705,400.022,004,846.1835%2018790,484.742,675,330.9230%2019879,496.573,402,827.4926%

Sheet1Table 34Current Ratio Computation

YearCurrent assetsCurrent LiabiltiesCurrent ratio(a)(b)(a/b)*1002014P1,678,452.93P793,357.10212%20152,167,343.10864,873.74251%20162,691,542.69898,811.46299%20173,305,837.44935,021.21354%20183,987,345.14973,861.23409%

Sheet1Table 35Acid-test Ratio Computation

YearCurrent AssetsInventoryCurrent LiabilityAcid-test Ratio(a)(b)(c )(a-b)/c2015P1,678,452.93P191,524.70P793,357.10187.42%20162,167,343.10197,697.06864,873.74227.74%20172,691,542.69204,141.73898,811.46276.74%20183,305,837.44210,858.71935,021.21331.01%20193,987,345.14218,029.54973,861.23387.05%

Sheet1Table 36Debt Ratio Computation

YearTotal LiabilitiesTotal AssetsDebt Ratio(a)(b)(a/b)*1002015P1,433,357.10P2,360,291.5861%20161,344,873.742,774,319.9048%20171,218,811.463,223,657.6438%20181,095,021.213,770,352.1329%2019973,861.234,376,688.7222%

Sheet1Table 37Inventory Turnover Computation

YearSalesAverage InventoriesRatio

2015P2,865,625.00P191,524.7014.9620163,343,221.00197,697.0616.9120173,510,382.05204,141.7317.2020183,685,901.15210,858.7117.4820193,870,196.21218,029.5417.75

Sheet1Table 38Average Collective Period Computation

YearReceivablesAnnualDaysRatioSales2015859,687.502,865,625.00365109.520161,002,966.303,343,221.00365109.520171,053,144.613,510,382.05365109.520181,105,770.353,685,901.15365109.520191,161,058.863,870,196.21365109.5

Sheet1Table 39Turnover Rate of Fixed Assets

YearSalesFixed AssetsRate(a)(b)(a/b)*1002015P2,865,625.00P681,838.65420%20163,343,221.00606,976.80551%20173,510,382.05532,114.95660%20183,685,901.15464,514.69793%20193,870,196.21389,343.58994%

Sheet1 Table 40Total Asset Turnover Computation

YearSalesTotal AssetsRatio

20152,865,625.002,360,291.58121%20163,343,221.002,774,319.90121%20173,510,382.053,223,657.64109%20183,685,901.153,770,352.1398%20193,870,196.214,376,688.7288%

Sheet1Table 41Computatio of Break-even Output (seedlings)

YearTotal Fixed CostUnit selling priceUnit Variable CostBEP Output TFC/(USP-UVC)2015453,760.6035.0020.34309522016456,355.5436.7521.04290492017459,080.2238.5921.77272982018462,250.4040.5222.53256992019465,254.3642.5423.3424229

Sheet1Table 42Computation of Break-even Sales in Pesos

YearTotal Fixed CostTotal Variable CostSalesBEP Sales TFC/(1-(TVC/S))2015453,760.601,850,568.422,865,625.001,281,019.942016456,355.541,913,746.843,343,221.001,067,313.752017459,080.221,980,084.183,510,382.051,053,093.652018462,250.402,049,738.393,685,901.151,041,344.622019465,254.362,122,875.313,870,196.211,030,506.57

Sheet1Table 43Computation of Break-even Selling Price

YearTotal costProduction OutputBEP selling Price20152,304,329.0290,972.0025.3320162,370,102.3890,972.0026.0520172,439,164.4090,972.0026.8120182,511,988.7990,972.0027.6120192,588,129.6890,972.0028.45

Sheet1Table 44Computation of Sales with a Net Income of P 200,000.00

YearTotal Fixed CostNet IncomeTotal Variable CostSalesProjected Sales (TFC+NI)/(1-(TVC/S))2015453,760.60200,000.001,850,568.422,865,625.001845643.638283692016456,355.54200,000.001,913,746.843,343,221.001535069.108765382017459,080.22200,000.001,980,084.183,510,382.051511877.79788132018462,250.40200,000.002,049,738.393,685,901.151491898.954446292019465,254.36200,000.002,122,875.313,870,196.211473492.878588

Sheet1YearAnnual Net Income2015451,934.482016623,511.682017705,400.022018790,484.742019879,496.57Average Net Income690,165.50

Sheet1Cash Payback Period=1,400,000.00/690,165.50=2.03

Sheet1Appendix AComputation of Projected Demand for CacaoSeedlings

Arithmitical Straight Line

YearAreea Planted (a)Projected AreaPlant Capacity per Hectar (b)Projected Demand For Seedlings (a*b)20003440.0920316 4802001344346.75920317 4802002344349.50920318 4802003347352.25920319 2402004355355.00920326 6002005357.75920329 1302006360.50920331 6602007363.25920334 1902008366.00920336 7202009368.75920339 2502010371.50920341 7802011374.25920344 3102012370.00920346 8402013379.75920349 3702014382.50920351 9002015385.25920354 4302016388.00920356 9602017390.75920359 4902018393.50920362 0202019396.25920364 550

Sheet1Appendix BTarget Users of the Commodity(Region V)

LocationArea Planted (Ha)

Sto. Domingo1. Mr Esflana1.252. Mr Jessie Balute10BacacaySula1. Evelyn Venzuela2. Erlinda Monteverde3. Eliza Bermundo4. John Paul SerranoHindi1. Gloria Belen2. Esfepanio Balbalsosa3.Benjamin BermundoPiliBonga1. Cesar Bernarte2. Maria BertilloGubat1. Armando Berdin2. Nestor BaaderaMalilipotCanaway1. Alfredo Brutas42. Celso Belangel13. Franvisco Belenzo24. Jaime Belangel1Tabaco10Bantayan1. Noel de Los AngelesTabiguian1. Nolito Ramirez2. Glen Bondad3. Solomon BongonTiwi21. Cristito Capus2. Jose Cantal3. Nepthalie PalimaMalinao3.5Daraga1.4Oas4.3Naga, Cam Sur8.7

Sheet1Appendix CComputation for the Production CapacityYearNo. ofGerminationCullingGrafting Seedling No. Total SeedRate10%SuccessLossofProductionPlanted95%Rate5%Cycle(seedlings)(per cycle)80%2015200001900017100136801299679097220162000019000171001368012996790972201720000190001710013680129967909722018200001900017100136801299679097220192000019000171001368012996790972

Sheet1Appendix DProduction Capacity and Market Share

YearTotal Demand (Seedlings)1Production Capacity (Seedlings)2Market Share(%)3Unsatisfied Demand (Seedlings)42015354 43090 97225.68263 4582016356 96090 97225.46265 9882017359 49090 97225.31268 5182018362 02090 97225.13271 0482019364 55090 97224.95273 578 1Appendix A 2Appendix C 3Total Demand/Production Capacity 4Total Demand-Production Capacity

Sheet1Appendix EWhite Board System12345678Seedlings9101112131415161718ABCDEFG

ROWS

Sheet1

Computation Of Nursery Shed CostQuantityDescriptionUnit CostTotal AmountFencing393kgBarbed Wire32.00/kgP12,576.0025bagsCement275.00/bag6,875.001cu. m. Gravel238.00/cu. m.238.001cu. m. Sand180.00/cu. m.180.0025pcs.10 mm Steel Bar86.00/pc2,150.0025pcs.8 mm Steel Bar78.00/pc1,950.00Total Material CostP23,969.00Labor Cost7,000.00SubtotalP30,969.00

Nursery Framewok20bagsCement 275.00/bagP5,500.001cu. m.Gravel238.00/ cu. m.238.001cu. m.Sand180.00/cu. M.180.0020pcs.10 mm Steel Bar86.00/pc1,720.0020pcs.8 mm Steel Bar78.00/pc 1,560.00500kgTie Wire65.00/kg32,500.00200pcs.Bambo Poles30.00/pc6,000.00Total Material CostP47,698.00Labor Cost14,000.00SubtotalP61,698.00

Roofing7000sq. m. Black Cloth14.75/sq. m.P103,250.00Total Material CostP89,250.00Subtotal89,250.00

Roofing Tent (1.4 m*10 m* 2.6m)255sq. m.Clear Plastic 35.00/sq. m.P8,925.005rollsPlastic Straw52.00/roll260.00Total Material CostP9,185.00Labor Cost28,000.0037,185.00Subtotal

Work Planning Area2pcs.G. I. Sheet250.00/pcP500.002pcs.1/4 Ordinary Plywood290.00/pc580.005pcs.2x3x12 Cocolumber78.00/pc390.005pcs.2x6x12 Cocolumber100.00/pc500.001/2kg3" Nails55.00/kg27.501/2kg2" Nails57.00/kg28.501/2kgUmbrella Nails70.00/kg35.00Total Material CostP2,061.00Labor Cost1,000.003,061.00Grand TotalP222,163.00