REGISTRATION REQUIREMENTS 1.

Business Name Registration Department of Trade and Industry (DTI) DTI Provincial Office where the business is located Website: www.bnrs.d i.gov.ph Validity: 5 years

3.

Microfinance Program Peoples Credit and Finance Corpora ion (PCFC) 2F, Accelerando Bldg., 395 Sen. Gil Puyat Avenue, Makati City Tel. No.: (632) 895.8985 Website: www.pcfc.ph (Retail Lending is through partner microfinance institutions) SME-Financing for Receivables of Suppliers Transactions (SME-FIRST) Small Business Corporation 17th & 18th Floors., Antel Corporate Centre 139 Valero Street, Salcedo Village, Makati City Tel. No.: (632) 751.1888 Website: www.sbgfc.org.ph (Direct lending for individual borrower with an asset size of P500K-100M)

4. Area 1 Office (Manila, Pasay. Paraaque) Mezzanine Floor, Roxas Strip Building Roxas Boulevard cor. Arnaiz Ave, Pasay City Tel. No.: (632) 659.4203 Area 2 Office (Makati, Las Pias, Pasig, Muntinlupa, Pateros, Taguig) Unit 208, 2nd Floor Atrium of Makati Makati Avenue, Makati City Tel. No.: (632) 864.0847 Area 3 Office (Mandaluyong, Marikina, Quezon City, San Juan) Ground Floor, Highway 54 Plaza EDSA, Mandaluyong City Tel. No.: (632) 706.1767 Area 4 Office (Kalookan, Malabon, Navotas, Valenzuela) 5th Floor, Araneta Square Mall Monumento Circle, Kalookan City Tel. Nos.: (632) 332.0829 2. Mayors Permit Municipality or city where the business is located Validity: 1 year Tax Identification Number (TIN) Bureau of Internal Revenue (BIR) BIR regional or district office where the business is located Email: contac_us@cctr bir.gov.ph BFAD Certificate Bureau of Food and Drugs (BFAD) Civic Drive, Filinvest Corporate City, Alabang, Muntinlupa City Tel. Nos.: (632) 807.0721 / 842.5606 BFAD Regional Office where the business is located 3. 1.

TECHNICAL ASSISTANCE Department of Trade and Industry Cottage Industry Technology Center (DTI-CITC) 20 Russet Street,SSS Village, Marikina City Tel. Nos.: (632) 942.3974 / 948.2875 / 941.4516 Fax : (632) 942-0107 Email : citc_dti@yahoo.com Department of Science and Technology Technology Resource Center (DOST-TRC) Jacinta II Building Guadalupe Nuevo, EDSA, Makati City Tel. No.: (632) 822.5087 Website: www.trc.dost.gov.ph Ultima Entrepinoy Nutrition Foundation of the Philippines Bldg. 107 E. Rodriguez Sr. Avenue, Quezon City Tel. Nos.: (632) 742.7866 / 411.1349 / 742.0826 Website: www.spicesandfoodmix.com

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FINANCING 1. Livelihood Devt. Program for Overseas Filipino Workers (LDPO) National Livelihood Development Corporation (NLDC) 7/F, One Corporate Plaza, 845 A. Arnaiz Avenue, Makati City Tel. Nos.: (632) 817.3013 Website: www.nldc.gov.ph Microfinance 1 (MF1) Program/ Opportunity Ka-Partner Microfinance 2 (OK-MF 2) Program Opportunity Microfinance Bank (OMB) OMB Building, Robinsons Homes East Commercial Arcade-1, Robinsons Homes East Circumferential Road, Barangay San Jose, Antipolo City Tel. No.: (632) 630.0141 locals 131 /135 / 151 (Direct Lending for individual borrower)

2.

Printed July 2012

BUREAU OF MICRO, SMALL AND MEDIUM ENTERPRISE DEVELOPMENT (BMSMED) 5/F, Trade and Industry Building 361 Sen. Gil J. Puyat Ave. Maka i City Tel. Nos.: (632) 897.1693 / 897.7596 / 890.4968 Fax No.: (632) 896.7916 Email: bmsmed@dti.gov.ph www.dti.gov ph

Sausage is one of the oldest forms of processed food, and is also called by names: frankfurters, frank, weenie, wienie, wiener, dog, and red hot. A cooked sausage consists of a combination of beef and pork or all beef, which is cured, smoked, and cooked. Seasoning may include coriander, garlic, ground mustard, nutmeg, salt, sugar, and white pepper. They are fully cooked but are usually served hot. Sizes range from big dinner frankfurters to tiny cocktail size. I. ESTIMATED INVESTMENT COST A. Cost of Utensils Cost 70.00 49.00 120.00 240.00 89.00 52.00 60.00 130.00 210.00 Php 1,020.00 Cost 379.00 900.00 28,000.00 800.00 305.00 Php 30,384.00

Extenders (optional) Isolated soy protein (ISP) Textured vegetable protein Hydrate for 3 minutes. Carageenan Subtotal (TVP)

5g 18g 1.25g

Php 1.50 1.44 .50 Php 3.44

III. ESTIMATED COSTING AND PRICING (for one kilogram of smoked sausage) A. Product Costing Direct Cost Particulars Raw Material (1 kg. Beef/Pork Meat) Ingredients used for 1 kg Packaging Material Labor Cost (P382/day min. wage / 100kgs. produced x 3 workers) Total Direct Cost Indirect Cost Transportation Cost (P150 / 100 kgs.) Water and electricity (P600 consumption / 100 kgs.) Contingency Cost (10% of Direct cost) Total Indirect Cost 1 50 6.00 37.46 Php 44.96 Cost Php 211.00 126.68 25.50 11.46 Php 374.64

In cup water add Textured Vegetable Protein (TVP), hydrate for 3 mins Seasonings Refined sugar Anisado wine Garlic powder Black pepper, ground Vinegar Soy sauce Meat enhancer Vetsin (Op ional) Smoked Flavor Subtotal Packaging Material Natural hog casing (#23 28) Polyethylene bags (6 x 10) for 1 kg. Meat product Sub total Estimated Total Investment Cost Based on February 2009 prices II. PROCEDURE Select good quality raw materials. Grind chilled meat using, 3.0 mm hole plate. Chop beef and pork at low speed. Add hydrate ISP. Add curing ingredients, except sodium erythorbate. Add half of ice required. Add all he rest of the fillers and extenders. Shift to a high speed. Add all he spices/seasonings. Add ground pork backfat. Add the remaining ice. Continue cutting for thorough blending 5-7 minutes cutting time, 1115 C emulsion temperature. Add sodium erythorbate in last minute of cutting time. Run through stuffer. Link to desired length. Drape in smoke and hang to dry (30 minutes - 1 hour at room temperature). Smoke for 30 minutes at 55 C. Increase heat to 65 C for 15 minutes. Heat clean, tap water to 75 C. if desired, add allura red #40 to the water for color. Transfer smoked sausages to the pre-heated water. Cook for 10-15 minutes. Shower with cool, tap water and chill. Pack in polyethylene bags. Store in chiller or freezer.

Utensils Measuring cup/spoon for solid & cup for liquid (made of plastic or stainless steel) Spatula Kitchen knife Knife sharpener Kitchen spoon Ladle Funnel (stainless steel) Stainless steel bowl 32 Tray, plastic of aluminum (rectangular) Subtotal B. Equipment Weighing scale for spices ( 0-1 kgs) Weighing scale for meat ( 1-10 kgs.) 11 cu. ft Refrigerator (can cure 40 kgs. meat) Polysealer (for sealing of plastic bags) Styrofoam cooler (for transport Of meat products) Subtotal C. Raw Materials/Ingredients/Packaging Material Item Raw Materials Beef lean, ground coarsely Pork backfat, ground coarsely Subtotal Ingredients Curing Mix Refined salt Curing salt Phosphate (dissolved in cup water) Vitamin C powder (sodium erythorbate) Chilled water (to dissolve the 4 ingredients) Subtotal Kg. 700 g

40g 30ml 24g 5g 10ml 20ml 1g 1.5g

Php 14.50 30.00 6.00 2.00 22.50 22.50 .25 .15 22.50 Php120.40

Php 36.25 1.00 Php 37.25 Php31,775.49

Based on 100kgs. average daily produce After mixing all ingredients to the 1 kg meat, the yield of the finished product would weigh 1.3 kgs. Production Cost Total Direct Cost Add: Total Indirect Cost Total over he 1.3 kg. yield Estimated Production Cost per Kg. B. Product Pricing Production cost per kg. Add: 20% mark-up of the Production Cost Estimated Selling Price per kilogram Market Price per kilogram Php 322.77 64.55 Php 387.32 Php 389.00 Php 374.64 44.96 419.60/1.3kg Php 322.77

Price/kg.

Php196.0 0 300 g 15.00 Php 211.00

9g 2g 3g .5g 62.5g

Php 1.80 .16 .48 .40 0 Php 2.84

The higher the volume of production per day (more than 100kgs.), the lower the production cost, thus further increasing the markup to more than 20%. The higher the markup, the higher the profit margin. If price per kg. is lower compared with the existing market price, increase mark-up to more than 20%. All figures are rounded to the nearest centavo.