CHAPTER I

EXECUTIVE SUMMARY

A. Introduction

The business operation of an enterprise producing and selling crop residue

based TMR Feedmix has both a comparative and absolute advantage considering the
fact that Cagayan Valley is the top corn producing region in the country and the second
highest rice producing region in the country. The enterprise operation will be very
feasible in Cagayan Valley due to the favorable conditions like the availability of raw
materials (rice straws and corn cobs/stover) and other ingredients in producing TMR
feedmix. The product is nutrient-enriched for lactating dairy animals that help increase
milk production. The target users of this product will be the dairy farmer growers in
Cagayan Valley and outside the region.

The proposed enterprise will be operated and managed by Central Isabela Agri.
Manufacturing Corporation.(CIAMC) for five years (5) targeting the 55% of the local TMR
consumption of the dairy animals in the region. It needs Php1,550,000.00 total capital.
Around 33.33% (Php 516,590.00) intended to acquire the facilities and equipment, while
66.67% (Php 1,033,410.00) for operating capital. The enterprise will earn an average
income of Php 273,343.88 annually and have an ROI of 50.39%. The enterprise will
obtain a BCR of 1.01, a positive NPV of Php515,274.48 at a discounted rate of 18% per
annum and yielded an IRR of 61.60%. The enterprise has better opportunity cost of
investment since for one peso investment will earn for about Php0.62 for five years of
operation.

B. Mission and Vision

Production of Crop-residue based TMR feedmix will provide sustainable forage

for Dairy animals all year round. Abundance of available forage are observed during the
rainy season and nutition of dairy animals are compromised during dry season. With
these project, dairy animals and farmers will not have to worry for forage if there is an
existing budget friendly source of forage. Moreover, this project will create other source
of income for farmer entrepreneurs when they resort to TMR production. Furthermore,
crop residues that in time will become wastes will not be a problem anymore. This
project will be a double barreled gun to cater both problems on forage supply and
wastes management in our farms.

C. Products and Services

The corporation will offer crop residue-based Total mixed rations feedmix both
rice straw based and corn based depending on the availability of raw materials.
Formulation of each feed mix will be based on proposed nutrient content of feedmix
 provided by ISU professionals. Also, services such as shredding, silos, etc. will also be
offered by the corporation.

D. The Management Team

The management will be composed of the Central Isabela Agri. Manufacturing
Corporation.(CIAMC) team alongside the ISU team with its corresponding personnel and
laborers.
E. Target Customers
Our target customers are those farmer entrepreneurs that are in the dairy business
which needs constant and sufficient supply of forage for their dairy animals. Locals and outside
the region clients are in need of available feeds for their animals all year round.

F. Competitive Analysis/Advantages

Expansion of the services offered of the cooperative is strategic nowadays because

people will tend to resort on one-stop shops that offers diverse services and products which
lessen effort on transportation, etc.
G. Goals and Objectives:
1. To be one of the top producers of crop residue-based TMR feedmix in the
municipality, in the province, and eventually in the country.
2. To provide sustainable income generating project for the cooperative to provide for
its operations’ maintenance.
3. Growth of the enterprise will ensure additional jobs and income for the CIAMC
corporation.

H. Keys to Success:
We believe that the keys to success of the enterprise is maintaining a high quality,
nutrient enriched, and affordable TMR feedmix for their dairy animals. Alongside quality forages,
other services such as shredding services, etc. will attract entrepreneurs or farmers that prefers
to manufacture their own forages for business purposes or own use. Keeping the products and
services at their best state will keep the customers raving for more.

I. Financial Forecast

The discounted inflows (income) and outflows (cost and expenses) from pre-operating
period to the fifth year of the enterprise operation can obtain with positive net present value
(NPV) of Php515,274.48 at 18% discounted rate per annum. This further shows that the initial
investment of Php516,590.00 spent to acquire equipment and establish the facilities has
increase its value to Php1,031,864.48 (Php516,590.00 + Php515,274.48) after five years of
operation considering the time value of money of 18% per annum.
 J. Financial Requirement

To operate the project, the needed capital investment will be acquired and working capital
must be ascertained before its operation. The proposed enterprise will be needed of
around Php1,550,000.00. Around 33.33% (Php 516,590.00) of the total capital will be
spent to acquire the facilities and equipment, while 66.67% (Php 1,033,410.00) of it will be
used as operating capital.

Composition of Capital:
a. Capital Investment = Php 516,590.00
b. Working Capital = Php 1,033,410.00
Total = Php 1,550,000.00

CHAPTER II

HISTORY AND POSITION TO DATE

A. Mission

To provide premium crop residue-based TMR feeds for dairy animals of farmers

that will resort to our products.

B. Vision

To be one of the best, if not the best, TMR producing corporation in the region

and eventually in the country.

C. Management and Key Personnel

The production of TMR will be from 8:00 am to 5:00 pm managed by the Central

Isabela Agri Manufacturing Corporation.

Personnel Plan

Three divisions of production will comprise the enterprise. First is the raw materials

collection and gathering department that will, of course, provide and outsource needed raw

materials for the production of the crop residue-based TMR. The second department is the TMR

mixing and packaging that will cater the process of mixing nutrient enrichment on the crop

residues (rice straw and corn cob/stovers) and will package the product for its maximum shelf

life and for aesthetics. The third one is the marketing and product promotion department that will

contact and persuade buyers and customers to patronize our products. Marketing strategies,

promotions, sales, etc. will be part of their functions as a department.

D. Services

Aside from corn silage production, milk processing services, and lending

services, the cooperative will also venture on TMR production with crop residue as the

raw materials for the feedmix.

E. Company Structure

CIAMC Manager ISU-Team

TMR Enterprise
Manager

Raw Materials Collection TMR Mixing and Marketing & Product

and Gathering Packaging Promotion

Workers/Laborers
 Figure 1. Organizational Structure of TMR Enterprise

F. Business Structure

The Central Isabela Agri Manufacturing Corporation.is a private corporation that

engaged with dairy processing and other services provided like agricultural machineries,

silage production, and now, crop residue-based TMR.

CHAPTER III

MARKET RESEARCH

1. Demand and Supply Analysis

The Central Isabela Agri. Manufacturing Corporation.(CIAMC) a primary corporation
that is chosen as adopter of this enterprise to engage business in producing and
marketing of TMR in Cagayan Valley. CIAMC is capable of producing and marketing
the needed TMR by the dairy producers in the area. However, the corporation will be
operating at 55% of 75% of the total demand of TMR in the region (Table 1). The
remaining excess demand will be for the competitors of this product in the market.
There is greater potential demand of this product outside the region like in Batangas,
Bulacan and Pangasinan as market outlets of the product in the future.
The supply of this product (crop residue based TMR Feedmix) at present is low but
unique because TMR feed-mix in the market have different raw materials used.
Table 1. Demand of TMR in Cagayan Valley:
Demand of TMR in Cagayan Valley:

Feeding
Cattle: Requirement Demand of TMR
Cooperatives 5
SUCS 2
Total Number of Heads 428 heads 5 kg/hd/day 2,140 kg/day
Carabao:
ooperatives/Association 33
SUCS 2
Total Number of Heads 1200 heads 5 kg/hd/day 6,000 kg/day
Total Demand 1,628 heads 8,140 kg/day

Source: PCC and NDA Regional Office

 Total TMR Demand in Cagayan
Valley:
1. Demand per day 8,140 kg
2. Demand per Month 244,200 kg
2,971,10
3. Demand per Year 0 kg
Target Volume for TMR Production
(55% of Demand in Cagayan Valley) 4,477 kg/day
Note: There is greater demand of TMR outside the region which will be the potential market
of the project

Schedule of Production for TMR:

kg/cycle/2
Capacity of Production 1,000 hours
Target Volume of TMR/day 4,477 kg/day
Target Volume of TMR/Month 134,310 kg/Month
1,477,41
Target Volume of TMR/Year 0 kg/Year
Production of Rice Straw Based of the total target of 2,238.5
TMR 50% production 0 kg/day
of the total target of 2,238.5
Production of Corn Based TMR 50% production 0 kg/day

Supply of crop residue based

TMR
No stable supply of crop based TMR in Cagayan Valley

2. Product Price
The cost of producing rice straw and corn cob/stover TMR feedmix per cycle are shown in
Tables 3 and 4. Rice straw based TMR has a cost of Php16.92 per kg which is lower to
corn cob based TMR with Php16.93 per kg due to the variation of the level of mixture.
Both TMR products has a breakeven cost of production of Php17.46 per kg (Table 4) with
a minimal mark up of Php 0.54 or a selling price of Php18.00 per kg which can be sold in
the production center of the cooperative. The existing selling price of the product is
cheaper than the price of the competitors and other feed concentrates of Php17.00/kg.
This introductory price of the product will encourage the local dairy farmers to utilize TMR
products to help increase the milk production of their animals.
Table 2. Costs of Producing rice straw based TMR

QUANTITY Total Value/

MATERIALS
1,000 Kg /Batch Unit cost (Php) Batch

1. Bio-Rumizyme (21% CP) 2 Kg 650.00 /bot 1,300.00

2. Fersol (21% CP) 160 Kg 60.00 /kg 9,600.00
3. Silage 309 Kg 2.00 /kg 618.00
4. Rice straw 319 Kg 1.50 /kg 478.50
5. Copra Meal (21% CP) 75 Kg 12.50 /kg 937.50
6. Corn grits 75 Kg 15.00 /kg 1,125.00
7. Oyster shell 10 Kg 12.00 /kg 120.00
8. Molasses (2.9% CP) 50 Kg 12.00 /kg 600.00
9. Water 800 Lit 0.15 /lit 120.00
10. Labor* 3 MD 300.00 /day 900.00
11. Packaging Supplies** 75 Pcs 15.00 /pc 1,125.00
TOTAL COST 16,924.00

Cost per kg TMR feed mix 16.92

*For weighing, mixing, vacuum/bagging, piling

**For sacks with plastic bag, rubber band

Table 3. Costs of producing corn cob based TMR

QUANTITY Total
MATERIALS Value/
1,000 Kg /Batch Unit cost (Php) Batch
1. Bio-Rumizyme (21% CP) (1 650.0
2 Kg
bot=1kg) 0 /bot 1,300.00
2. Fersol (21% CP) (1 bag= 25kg) 160 Kg 60.00 /kg 9,600.00
3. Silage 319 Kg 2.00 /kg 638.00
4. Corn Cobs 309 Kg 1.50 /kg 463.50
5. Copra Meal (21% CP) 75 Kg 12.50 /kg 937.50
6. Corn grits 75 Kg 15.00 /kg 1,125.00
 7. Oyster shell 10 Kg 12.00 /kg 120.00
8. Molasses (2.9% CP) 50 Kg 12.00 /kg 600.00
9. Water 800 Lit 0.15 /lit 120.00
300.0
10. Labor* 3 MD
0 /day 900.00
11. Supplies** 75 pcs 15.00 /pc 1,125.00
TOTAL COST 16,929.00

Cost per kg TMR feed mix 16.93

*For weighing, mixing, vacuum/bagging, piling

**For sacks with plastic bag, rubber band

Table 4. Breakeven Cost in Producing TMR

Volume of
Total Cost Breakeven
Year Production
(Php) Cost (Php)
(Kg)
1 23,000,599.01 1,432,640 16.05
2 25,514,176.12 1,432,640 17.81
3 25,514,176.12 1,432,640 17.81
4 25,514,176.12 1,432,640 17.81
5 25,514,176.12 1,432,640 17.81
Average 17.46

3. Product Promotion
The ISU team will be helping the corporation to promote the products to the dairy
producers in Cagayan Valley and outside the region. Feeding demonstration will be done
to the animals of the targeted dairy farmers to show the effect of the products.
Social media, local radio stations, meetings and leaflets will be utilized for wider reach of
information dissemination about the product. Comparisons of farmer practices in dairy
operation vs adopting this technology (feeding with silage plus TMR) will be highlighted in
the information disseminations.

I. Technical Study
a. Enterprise Location
The enterprise will be operated by Central Isabela Agri Manufacturing Corporation .at the
office address at Cauayan City, Isabela. The said corporation has the capability to engage
this kind of business and utilize its network for marketing of the product.

b. Fixed Assets Requirement for Production of TMR

Table 5 shows the required fixed assets requirement needed for the operation to produce
both kinds of TMR feedmix.
Table 5. Fixed Assets for TMR Production for 1000 kg/cycle

Total
Unit Cost Economic Depreciatio
Item Qty Value
(Php) Life Span n Cost*
(Php)
200,000.0 200,000.0
1. Chopper 1 0 /unit 0 5 yrs 40,000.00
2. Shredder 1 60,000.00 /unit 60,000.00 5 yrs 12,000.00
3. Hummer mill with 250,000.0 250,000.0
Accessories 1 0 /unit 0 5 yrs 50,000.00
4. Weighing Scale 1 2,500.00 /unit 2,500.00 5 yrs 500.00
5. Plastic Drum 2 700.00 /unit 1,400.00 5 yrs 280.00
6. Shovel 2 300.00 /unit 600.00 5 yrs 120.00
7. Sprinkler 2 45.00 /unit 90.00 2 yrs 45.00
8. Tarapal 1 2,000.00 /unit 2,000.00 2 yrs 1,000.00
Total 516,590.0
Depreciation/Year 0 103,945.00

*Straight line method

c. Nature of the Product

There are two kinds of TMR formulations that will be produced such as rice straw based
and corn cob/stover based. The formulations of the TMR product with the different
ingredients and schedule of targeted production per cycle, per day, per month, and per
year are shown in Table 6 and 7. All raw materials will be strategized to acquire in the
locality. The main ingredients will be arranged for collection from the farmer members and
non-members on the organization in the locality to assure its availability in a whole year
round.
d. Raw Materials
The raw materials can be acquired locally in the region (Table 6 and 7). The biorumizyme
and fersol will be on consignment for its supply from the dealer’s company. For farm based
resources like silage, rice straw and corn cobs/stover will be acquired locally from the
farmers. The silage will be made out of green corn produced by the farmers which the
enterprise need around 309kg for rice straw based TMR and 319kg for corn cob/stover
based TMR per batch of production. In a month the enterprise will be need approximately
449 tons of corn green silage in a year. For rice straws and corn cobs, the enterprise will
be needed of around 319kg and 309kg, respectively per batch or cycle. In a month the
enterprise will be needed for around 21.4 tons for rice straw and 20.7 tons for corn cobs,
while in a year 228.5 tons for rice straws and 221.3 tons for corn cobs. These farm based
resources can be acquired in the rice and corn areas nearest to the production center at
Cauayan City. The volume of production for rice and corn are more than enough to the
needed raw materials for a year considering that there are two croppings of production of
the said crops. Other feedstuffs are available in the feed commercial stores in the locality
which can be availed anytime.

To assure the supply of the said raw materials particularly from rice and corn farms, the
enterprise will conduct information drives to the farmers to buy their rice straws and corn
cobs/stovers in every cropping. These raw materials be will be delivered or pick-up from
them during after harvest. They will be trained to bale the rice straws in the field for easy
transport to the TMR processing plant. It was observed that the farmers usually burn their
rice straws and corn cobs after harvest and no other tangible alternative economic usage
of these raw materials in the farmer’s level. Collection of needed raw materials enough for
the operation will be done for every cropping and stored it to the warehouse.

e. Product Packaging
The product will be packaged in a 40kg sacks coated with plastic to preserve the desired
moisture content of the product. The sacks are properly labelled with the name, brand,
trademark, the nutrient content of the products, etc. for its proper identification and
distinction from other products in the market.
Table 6. Target volume of Rice Straw based TMR production of the Cooperative

Rice Straw Based TMR (kg)

Volume
MATERIALS Volume Volume of of
1,000 Kg /
Productio Production Producti
Batch
n per Day Per Month on Per
Year
1. Bio-Rumizyme (21% CP) 2 kg 4 134 1,433
2. Fersol (21% CP) 160 kg 358 10,745 114,611
3. Silage 309 kg 692 20,751 221,343
4. Rice straw 319 kg 714 21,422 228,506
5. Copra Meal (21% CP) 75 kg 168 5,037 53,724
 6. Corn grits 75 kg 168 5,037 53,724
7. Oyster shell 10 kg 22 672 7,163
8. Molasses (2.9% CP) 50 kg 112 3,358 35,816
TOTAL Kg 1,000 kg 2,239 67,155 716,320

Table 7. Target volume of Corn Cob based TMR production of the Cooperative

Corn Cob Based TMR (kg)

MATERIALS Volume Volume of Volume of

1,000 Kg
Productio Production Production
/Batch
n per Day Per Month Per Year

1. Bio-Rumizyme (21%
2 kg
CP) 4 134 1,433
2. Fersol (21% CP) 160 kg 358 10,745 114,611
3. Silage 319 kg 714 21,422 228,506
4. Corn Cobs 309 kg 692 20,751 221,343
5. Copra Meal (21% CP) 75 kg 168 5,037 53,724
6. Corn grits 75 kg 168 5,037 53,724
7. Oyster shell 10 kg 22 672 7,163
8. Molasses (2.9% CP) 50 kg 112 3,358 35,816
TOTAL Kg 1,000 kg 2,239 67,155 716,320

f. Production Operation of the Enterprise

The corporation will manage the enterprise for the production and marketing of the TMR
products. They will be capacitated the use of the technology and the operation of the
business. The collected raw materials will be paid from them at Php2.00 per kilo in cash
basis. This will be an added income of the local rice and corn farmers instead of burning it
in the field.
The collection of raw materials will be done continuously and be stored it properly in the
storage house to ensure the availability in the whole year round of operation. The corn and
rice farmers will be informed about the collection and buying of their farm wastes through
the help of the Department of Agriculture or information can be disseminated during
farmer’s meeting that will be conducted by the cooperative.
 The production of the TMR will consider 8 hours a day, 30 days a month and 320 days in a
year to attain the targeted production considering the capacity of the machinery and
equipment that will be used. In one batch or cycle good to produce 1,000 kilos of TMR can
be done within 2 hours. In a day they can perform four cycles or can produce 4 tons.
Table 8. Working Period

One Day 8 Hours

One Month 30 Days
One Year 320 Days
The operation of the enterprise must operate above the breakeven volume (Table 9) in
order to earn an income. The breakeven volume must be the base-line information of the
management during the production of TMR from time to time. Definitely, the breakeven
production monthly would be 115,793.80 kg and 3,859.79 kg of TMR daily.

Table 9. Breakeven Volume of TMR Production

Total Cost Selling Breakeven

Year
(Php) Price/Unit Volume (Kg)
1 23,000,599.01 25.40 905,535.39
2 25,514,176.12 25.40 1,004,495.12
3 25,514,176.12 25.40 1,004,495.12
4 25,514,176.12 25.40 1,004,495.12
5 25,514,176.12 25.40 1,004,495.12
Average 984,703.18

II. Financial Study

1. Enterprise Total Cost
To operate the project, the needed capital investment will be acquired and working capital
must be ascertained before its operation. The proposed enterprise will be needed of
around Php1,550,000.00. Around 33.33% (Php 516,590.00) of the total capital will be
spent to acquire the facilities and equipment, while 66.67% (Php 1,033,410.00) of it will be
used as operating capital.

Composition of Capital:
c. Capital Investment = Php 516,590.00
d. Working Capital = Php 1,033,410.00
Total = Php 1,550,000.00
================
2. Sources of Capital
The needed capital for enterprise operation will be sourced out from CIAMC enterprise.

3. Financial Analysis
a. Average Cost and Income

The proposed TMR enterprise will be operating for 5 years. The production and operation
of the enterprise will be in normal conditions as assumed. The enterprise can generate an
average gross sale of around Php25,787,520.00 per year and can incur an average costs
of around Php25,292,176.12 per year. Thus, the enterprise can generate an average
gross operating profit of Php495,343.88 per year and it projected to obtain an average net
profit before payment of tax of around Php273,343.88 per year (Table 10 and Annex 8).
The enterprise showed a favorable income for five years of operation.

Table 10. Average cost and income of TMR enterprise for 5 years of operation

Particular Value (Php)

Average Sales 25,787,520.00
Average Operating Costs 25,292,176.12
Average Gross Operating Profit 495,343.88
Average Administrative Expenses 222,000.00

Average Net Profit Before Income Taxes 273,343.88

b. Cashflow Statement
As shown in Table 11 and Annex 9, the enterprise has enough funds for its operation
from year 1 to year 5. It also shows that the needed funds as stated in the enterprise
outflows can be funded by its beginning balances especially during the onset of the
operation in each year.

Base in Annex 9, the enterprise has an ending balance of Php1,033,410.00 during the
pre-operating period which this amount will be the beginning balance for the next period
ready to finance its cost of production for Php1,282,185.22. Some of the cost amount will
be taken from the sales in the same period to defray its needed cost of operation. Month
after month, quarter after quarter and year after year of operations will be financed by
the accumulated cash balances in each period plus its generated net sales. The
enterprise can be generated a cash balance of around Php2,850,499.50 at the end of
the fifth year of operation.
Table 11. Projected Cashflow Statement of 5-year TMR Production and Marketing

Pre-
Particular Operating Year 1 Year 2 Year 3 Year 4 Year 5
Period
I. Inflow
Total 1,550,000.0 23,208,768.0 25,787,520.0 25,787,520.0 25,787,520.0
Inflows 0 0 0 0 0 25,787,520.00

Less:
II. Out
Flows
Total 22,896,654.0 25,410,231.1 25,412,321.1 25,410,231.1
Outflows 516,590.00 1 2 2 2 25,412,321.12

IV. Net
Inflows/ 1,033,410.0
Outflows 0 312,113.99 377,288.88 375,198.88 377,288.88 375,198.88

V.
Beginning
Balance 0 1,033,410.00 1,345,523.99 1,722,812.87 2,098,011.75 2,475,300.63

VI. Ending 1,033,410.0

Balance 0 1,345,523.99 1,722,812.87 2,098,011.75 2,475,300.63 2,850,499.50
Cashflow Analysis
Table 12 and Annex 11 show the cashflow analysis of five year TMR production and
marketing operation of the enterprise. The discounted inflows (income) and outflows
(cost and expenses) from pre-operating period to the fifth year of the enterprise
operation can obtain with positive net present value (NPV) of Php515,274.48 at 18%
discounted rate per annum. This further shows that the initial investment of
Php516,590.00 spent to acquire equipment and establish the facilities has increase its
value to Php1,031,864.48 (Php516,590.00 + Php515,274.48) after five years of
operation considering the time value of money of 18% per annum.

Table 12. Cashflow Analysis of five year TMR Production and Marketing.

Pre-
PARTICULAR Operating Year 1 Year 2 Year 3 Year 4 Year 5
Period

Gross Benefits

23,208,7 25,787,5 25,787,5 25,787,5 25,787,5

Sales of TMR - 68.00 20.00 20.00 20.00 20.00

Gross Cost

Fixed Capital
Investment 516,590.00

22,674,6 25,188,2 25,188,2 25,188,2 25,188,2

Operating Cost 54.01 31.12 31.12 31.12 31.12

Administrative and 222,000. 222,000. 222,000. 222,000. 222,000.

Selling Expenses 00 00 00 00 00

22,896,6 25,410,2 25,410,2 25,410,2 25,410,2

Total Gross Cost 516,590.00 54.01 31.12 31.12 31.12 31.12

Net Benefit/Cost before

Financing & Income 312,113. 377,288. 377,288. 377,288. 377,288.
Taxes (516,590.00) 99 88 88 88 88
 Net Present Value (NPV) @ 18% Discount
Rate Php515,274.48
Financial Internal Rate of Return (IRR)% 61.60%
Php66,488,645.9
Discounted Gross Benefits, Php 3
Php65,973,371.4
Discounted Gross Costs, Php 4
Benefit-Cost Ratio 1.01

Furthermore, the enterprise has an internal rate of return (IRR) of 61.60% which is
greater than the hurdle rate of 18% per annum. It also indicated that around Php0.62
can be generated from Php1.00 spent for initial investment of the enterprise for five
years. The discounted benefits is greater than the discount cost (BCR = 1.01) which
means the enterprise is favorable.

Return on Investment (ROI)

The proposed enterprise is highly profitable as shown by a 50.39% return on investment
(ROI) which is much higher to the hurdle rate of 18% per annum. The enterprise has
better opportunity cost of investment since for every one peso that will be invested in the
enterprise it can earn with Php0.50 per annum (Table 13).

Table 13. Return on Investment (ROI):

Particular (Php)
Return on Investment (ROI):
Average Sales of TMR 25,271,769.60
Average Gross Costs 24,907,515.70
Average Depreciation Cost 103,945.00
Average Net Income 260,308.90
Initial Investment 516,590.00
ROI, % 50.39%
Payback Period
As shown in Table 14, the enterprise has short period of recovery of its initial investment
of around 2.13 year or 2 years and 1.56 month. It is very favorable to ciamc enterprise.

Table 14. Payback period of the enterprise

Principal No. of
Year Net Income
Balance Years
0 516,590.00
1 208,168.99 308,421.01 1.00
2 273,343.88 35,077.13 1.00
3 273,343.88 - 0.13
4 273,343.88 -
5 273,343.88 -
Payback period 2.13 years

25.54 months
III. Socio-economic Study
a. Direct Beneficiaries
The TMR enterprise is of help to the people who will be directly benefited by the
enterprise. First, the dairy growers who are living in the locality where the CIAMC will be
operating in Southern Isabela specifically in Echague, Jones, Santiago City and San
Agustin, they will be benefited to the cheaper cost and high quality TMR product that is
available to them for use. The dairy farmers can have an opportunity to increase milk
yield and income of their operation. Having them of an increased income, they can
maintain and improve/upscale further their farming operation. Second, the possibility of
having an increased milk production in the area can create more value adding activities
that are using fresh milk as an input/raw material to produce their product. Thirdly, the
rice and corn farmers can have an opportunity to earn more income from their farm
wastes through collecting them and sell it to the enterprise as an input for TMR
production. Fourth, the enterprise can offer employment opportunity to the unemployed
individuals that are willing to work in the production and marketing of TMR product. The
enterprise will need operators to man the machineries, laborers to do hauling and
transporting the product from the production site to the market, mixing and piling of the
products. Aside from that, the enterprise will be in need of managerial personnel to staff
the positions of the organizational structure for the enterprise operation.

b. Indirect Beneficiaries
The indirect beneficiaries of the enterprise will be those who want to engage business
out of the products. They will be giving them an opportunity to engage buy-and-sell
business of this product in the market to earn an income. Furthermore, the consumers of
milk can have constant supply that they can buy in the market for their health and dietary
needs.

IV. Organization and Management

The enterprise operation will be under directly to the manager of the corporation for its
operation. The assigned manager for the enterprise operation will be manning and
overseeing the three (3) line operating personnel such as: Raw Materials Collection and
Gathering, TMR Mixing and Packaging, and Marketing and Product Promotion (Figure
2). The heads of the said three divisions of the enterprise will be supervising their
laborers/workers to achieve the expected goal and output.

Specifically, the project manager will perform the following functions:

 Provides general supervision for the overall operation of the enterprise

 Monitors, directs and evaluates the enterprise at all times.
 Formulates and implements policies concerning the enterprise.
 Plans and controls the overall enterprise operations.
 Designs bookkeeping, health and sanitation programs
 Purchases raw materials and other production inputs and sells the products.
 Maintains cordial relations with the customers, community residents, and
concerned government agencies.

The role of the Isabela State University Team will provide technical support to guide and
coach for the use of the TMR technology. The ISU will provide also with capacity
building for project operation and management which also include financial, and
marketing concern. The enterprise will be helping on how their products can be link and
position to the potential markets within and outside the region.
 CIAMC CORPORATION TMR MANAGEMENT

CORPORATION
ISU-Team
MANAGER

TMR Enterprise
Manager

Raw Materials Collection TMR Mixing and Marketing & Product

and Gathering Packaging Promotion

Figure 2. Organizational Structure Workers/Laborers

of TMR Enterprise