Demand

Purple Yam or locally known as “ube” is considered as one of the most produced root crops in the

Philippines making our country as the major supplier in the world market (Salda, 2005). Consumers tend to eat

other types of food commodities next to rice in their dietary meals (Padua, 2016). And among the root crops,

purple yam (ube) ranked third, next to sweet potato and taro (gabi), on the preferences of the consumers making

it as the third most important tropical root and tuber crop after cassava and sweet potato.

Based on the outcome of the survey conducted, 79% of the respondents like to eat

fries. However, most of the respondents tend to eat fries only once a week in spite the fact

of them having the like to eat fries. The results also showed that 70% of which would like their

fries to be served as crunchy rather than soft. Among the choices given in the questionnaire,

catsup and mayo ranked first as the sauce for the fries garnering 52%. Despite having

introduced a new way of cutting their fries, the respondents still chose the traditional way

which is the strips having 68%. For the seasoning, salt and pepper is on the top of the list

obtaining 57% next to salt & chili powder (33%). It is of the respondents’ initiative to choose

paper over plastic on the packaging since it is eco-friendly. And among the two, cone or cup,

cone gathered the highest percentage of 41%.

Supply

In Southeast Asia, purple yam or “ube” is mainly produced in the Philippines and

Japan. From 2012-2016, the total production of other vegetables and root crops decreased at

an annual average rate of 1.3% among the highlighted commodities is the purple yam or

“ube”. Specifically, throughout 2012-2016 the production of purple yam or “ube” decreased

at an annual average rate of 3.4% percent. This may be due to lesser harvest given the effects

of typhoons and other calamities that brought damage to some commodities. However,

despite having a decrease in the production of the purple yam (ube), during 2016 the number

of production increased by 1.03%.

 Chapter 2

Market Aspects

This chapter covers the market description, demand, supply, demand and
supply analysis, projected consumption and sales for the next five years, packaging,
and competitive position. It is one of the most crucial part of the feasibility study.

Purple Yam or locally known as “ube” is considered as one of the most produced
root crops in the Philippines making our country as the major supplier in the world
market. Consumers tend to eat other types of food commodities next to rice in their
dietary meals. And among the root crops, purple yam (ube) ranked third, next to sweet
potato and taro (gabi), on the preferences of the consumers making it as the third most
important tropical root and tuber crop after cassava and sweet potato.

I. Market Description
II. Demand Analysis
In the year 2012, there has been an increase utilization of root crops
such as purple yam or commonly known as “ube”. For instance, as shown
in the table below, purple yam ranked third in the commodity preferred by
the consumers in La Union, Philippines.

Table 1. Rank of Commodity Preferred by Consumers in La Union, Philippines

Commodity Rank
Sweet potato/camote (Ipomeabatatas) 1

Taro/gabi (Colocosiaesculenta) 2

Yam/ube (Dioscoreaalata) 3

Source: Consumption Pattern and Marketing Practices of Selected Vegetables and Root Crops

Also, as of August 2017, there has been an increase in the total fry

imports of the Philippines. This only means that Filipinos are now being fond

of eating snacks such as fries to ease their hunger. That is one of the reason

why the company would like to make ube fries combining the preferred root
 crop commodity and snack in one that does not only benefit young people

but all ages.

The table below illustrates that 79 out of 100 respondents like to eat

ube fries which covers 79% of the distribution while 21 out of 100 or 21%

of the distribution do not like ube fries.

Table 3. Number of responses whether or not they like ube fries.

Yes

No

0 10 20 30 40 50 60 70 80 90

Now, we would like to see how often do they eat fries and based on the

results shown in the table below that most people eat fries only once a

week which covers 54% of the distribution. However, there are still who

are eating fries twice a week which is 39% and 7% for occasionally.
Table 4. Number of responses based on how often they eat fries

Occasionally

Twice

Once

0 10 20 30 40 50 60

Table 5. Total demand according to respondents’ consumption

Respondents % 79% of the Demand Frequency
respondent who Population Total
eats ube fries (number of
(a/100) (b x 79%) (17,515 x c) fries per week) (d x e)
(a) (b) (c) (d) (e) (f)
54 54% 42.66% 7,472 1 7,472
39 39% 30.81% 5,396 2 10,792
7 7% 5.53% 969 3 2,907
100 100% 79% 13,837 21,171
Annual Consumption: 21,171 x 4 weeks x 12 mos. = 1,016,208

Table 5. Projected demand for 5 years

Projected Previous Years Average Population Projected Yearly
Years Demand Growth Demand
(a x 10%) (a + b)
(a) (b) (c)
2019 1,016,208 101,621 1,117,829
2020 1,117,829 111,783 1,229,612
2021 1,229,612 122,961 1,352,573
2022 1,352,573 135,257 1,487,830
2023 1,487,830 148,783 1,636,613
Assumption: There will be a 10% increase in demand every year.

III. Supply Analysis

 According to the Philippine Statistics Office, as of 2016, the
production of purple yam or ube decreased at an average of 3.4% having
an average of 15,000 metric tons per year.

On the other hand, we were able to do some interviews with

regards to how many servings of fries does a particular seller able to

produce and supply to their consumers per day. One of which is potato

corner which stated that in a day, they produce an average of 80

servings of fries. Therefore, we based our assumption on this.

Table 7. Projected annual supply based on potato corner

Average daily Number Daily Weekly Monthly Yearly
supply per of stores Supply Supply Supply Supply
store (d x 4 (e x 12
(a x b) (c x 7 days) weeks) months)
(a) (b) (c) (d) (e) (f)
80 cups 40 3,200 22,400 89,600 1,075,200
Table 7. Projected supply for 5 years
Projecte Previous Years Average Population Projected Yearly
d Years Supply Growth Supply
(a x 10%) (a + b)
(a) (b) (c)
2019 1,075,200 107,520 1,182,720
2020 1,182,720 118,272 1,300,992
2021 1,300,992 130,099 1,431,091
2022 1,431,091 143,109 1,574,200
2023 1,574,200 157,420 1,731,620
*per servings
Assumption: There will be a 10% increase in demand every year.

IV. Demand and Supply Analysis

Table 8. Demand and Supply Analysis

Projected Years Demand Supply Gap
2019 1,117,829 1,182,720 64,891
2020 1,229,612 1,300,992 71,380
2021 1,352,573 1,431,091 78,518
2022 1,487,830 1,574,200 86,370
2023 1,636,613 1,731,620 95,007
Technical Feasibility
 Project

 Manufacturing Process

Washing &
Fresh Ube Cutting
Peeling

Frying Dewatering Blanching

De-oiling Flavoring Packaging

The first step of the manufacturing process is to de-load fresh purple yam (ube) which

where freshly delivered from different suppliers across the region. Through an automated

conveyor, the Ube is transported to the next step which is the washing and peeling section of

the factory. Machines and equipment are especially designed not the damage the purple yam

(ube). After being washed and peeled, it is transferred for cutting through an automated

conveyor. Instead of using the traditional way of cutting with sharp blades, waterjet cutting

machine is utilized for precision. Purple yam (ube) are cut uniformly and evenly by this

machine. To wash out the starch on the surface of the purple yam which causes its stickiness,

a blanching machine is used. In this process, purple yam (ube) is cooked in a boiling water

having a very high temperature. This does not only avoid the sticking of purple yam (ube) but

also to obtain the perfect crisp of the fries. Next to blanching is de-watering. By the use of an
automated conveyor, the purple yam (ube) is transmitted to a de-watering machine which

helps to reduce moisture and make it easy to fry. Frying reduces the moisture of the purple

yam (ube) up to 2% with the use of a palm oil. By this, it enables the purple yam (ube) to get

that perfect fries crisp. To remove excess oil, the fried purple yam (ube) is placed on the

draining oil belt. Now, the fried purple yam (ube) is ready for flavoring. A special flavoring

machine is used for seasoning the fried purple yam (ube) which mainly depends on the

demand of the consumer. After picking the flavor of the fried purple yam (ube), it is placed

on a conveyor belt for packaging, the paper cone. It is done by a packaging machine and

laborers manually put the fried purple yam on the paper cone.

 Part Size and Production Schedule

 Machinery and Equipment

Machinery & Equipment

• Washing and Peeling Machine

(TP10)

TP10 Cylindrical cleaning peeling

machine adopts the principle of

diamond grinding skin, easy

operation, high output, peeling

clean, peeling after the material

surface is smooth. Body made of

stainless steel, durable. Widely used

in: potatoes, sweet potatoes, taro,

 kiwifruit and other fruits and

vegetables, root-washing peeling.

• Potato Cutting Machine (QS400)

QS series Potato Chips

Machine/French Fries Machine is

the traditional and popular machine

on the basis of old machine. It is

easy to operate and clean and the

output is high. The machine can cut

potato chips and french fries

separately and the thickness can be

adjustable freely. The processed

slices and sticks is of smooth surface

without any damage. It is the ideal

cutter for processing potatoes and it

is also suitable for sweet potato,

yam, carrot and etc. It not only can

cut regular potato chips and potato

sticks, but also can cut curly potato

chips and potato sticks.

• Vegetable Blanching Machine

It is used for continuous blanching

of potato slices in the automatic

 potato chips production line. The

purpose is to inhibit the enzyme

activity to retain the natural color of

the potato slices. It can be heated

by steam, electricity, gas and

conduction oil.

• Dehydration Machine (TS-500)

A food dehydrator is a device that

removes moisture from food to aid

in its preservation. Food drying is a

method of preserving fruit,

vegetables, and animal proteins. It

uses a heat source and air flow to

reduce the water content of foods

• Frying Machine

The frying machine has this certain

features that allows the purple yam

to be perfectly fried which includes

timer with audible alarm, automatic

devices to raise and lower the

basket into the oil, measures to

prevent food crumbs from

becoming over cooked, ventilation

 systems to reduce frying odors, oil

filters to extend the usable life of

the oil, and mechanical or electronic

temperature controls.

• Fried French Fries Seasoning

Machine (BL-800)

It is an equipment used for flavoring

and mixing the seasoning of the

fried food, especially for French

fries, potato chips, puffed foods,

peanut and other fried foods, which

is designed and made according to

the shapes of the fried food.

• Packaging Machine

In the production, the packaging

machine used is intended to achieve

the desired shape of our output

which is the cone type. It is

automated to make the production

line a lot easier and be able to

produce the number of production

needed for the day.

 Plant Location
  Plant Layout

 Building and Facilities

 Raw Materials

Raw Materials

• Purple Yam (Ube)

It is commonly known as “ube” in

the Philippines because of its color.

It is one of the most commonly

grown root crops in the country. It is

also used in a variety of desserts

and as well as flavorings.

• Palm Oil

It is an edible vegetable oil derived

from the mesocarp (reddish pulp) of

the fruit of the oil palms. It is

naturally reddish in color because of

a high beta-carotene content.

• Salt

Salt is a mineral composed primarily

of sodium chloride (NaCl). It is one

of the oldest and most ubiquitous

food seasonings, and salting is an

 important method of food

preservation.

• Black Pepper

Black pepper is the world's most

traded spice, and is one of the most

common spices added to cuisines

around the world. It is produced

from the still-green, unripe drupes

of the pepper plant.

• Crispy Mix

It is usually used in fried chicken. It

is a special blend of flour, starches,

seasonings and spices. It makes the

food even crispier and tastier.

• Paper

It will be used in making the

packaging. The paper utilized is a

special kind of paper that could hold

the oil from the fries without getting

oil to your hands.

 Utilities

 Waste Disposal
 Production Cost