Republic of the Philippines

ANNEX D
TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY
ISO 9001: 2015 Certified

Region : V
Province: ALBAY

AGRICULTURE BUSINESS PLAN

I. GENERAL INFORMATION
A. Project Title: Organic Fertilizers as the main Boosters of Crops
B. Business Address: Local Plantation of crops in Guinobatan, Albay

C. Proponent:
Christine C. Garcia
PROPONENT
P6 DonJuan
Iraya
Guinobatan,
Albay
09304222775
Christinecrispo
ndegarcia@gm
ail.com

D. Total Project Cost: Php 17,000

COMPONENTS AMOUNT TOTAL

Labor 4000 4000
Fertilizers and Crops 5000 5000
Machinery 5000 5000
Containers 3000 3000
17,000

E. As crops such
Executive as fruits, vegetables and rice grains are the main product
Summary
of our area, implementing organic fertilizers to be used will be very beneficial
since it will not just help the crops to grow naturally but also maintains the
nutrients that is abundant in it. With the large scale of farmers that plants crops
the estimated annual income will not be a problem since the crops production will
go plenty, enough to sustain and give enough revenue for the producers. The
estimated annual income will be triple basing on the initial budget as the demand
go higher. The annual return of income estimated will be at least 75% in all.
As crops and grains are the main source of food by our market the
product to be produced from the harvested crops must be enough to supply the
demand of the market.
Volume of Product to Produce % of target buyer/consumers
75% of crops products
90% of the market’s population such as
(the remaining 25% will be divided to the
consumers and buyers are to be supplied
farmers)

The percentage of the products to be supplied after a year will increase to

5% prior to its original output.
Employment is one of the important factor that one should consider, as
the demand goes higher more workers and labors are needed to accommodate
the process that includes the business. At first workers and labor are
accommodated by little workers but after a year a proprietor must add workers to
be able to cope up with the labor.
This project may be seen as simple but it is unique in a way that it wants
to promote natural factors to nourish and produced good and nutritious crops for
the benefit of the market and its consumers. Not only we protect the people but
we are able to use natural factors in a good and smart way.

East Service Road, South Luzon Expressway (SLEX), Fort Bonifacio, Taguig City 1630
Land Line: (+632) 8888-5641 to 46 CP Number: (+63) 917-4794370 (text only) Telefax No.: (+632) 8893-2454 www.tesda.gov.ph ,
contactcenter@tesda.gov.ph
 II. PROJECT RATIONALE
A. Project Description

We came up with the idea to focus our business primarily on agriculture because
farming is one of the main sources of income in our area. Farming has become less
important as a result of globalization, which has shifted the market's demand and supply of
crops and agricultural products. We came up with the idea of assisting farmers in increasing
the amount of product produced and harvested for market supply. Farmers will be able to
have a good harvest at the end of each season by using Enhanced Natural and Organic
fertilizers. The market supply and demand will then rise, demonstrating the efficiency and
effectiveness of natural and organic fertilizers. Our business's scope and scale will be limited
to Farmers, Crops, Markets, and Consumers. This will be a profitable foundation that will
benefit society greatly.

B. Goal and Objectives

Our project's/goal business's is simply to be involved and to be the source.

and the beginning of development and progress among farmers and crop production
It will benefit from being boosted in a natural yet effective manner. As the days and
years pass, this business will be one of the foundations of modern and natural farming,
beginning with a simple organic fertilizer and quickly developing new innovations based
solely on organic and natural materials. Strategies will also play a significant role in bringing
the company to the top through honest and true values.

C. Target Recipients/Community

RECIEPIENT IN BENEFIT FROM THE

TYPE OF RECIEPIENTS
NUMBERS PROJECT
They will be assisted as
well as their crops in a
90% of the Farmers Workers/producers
way of boosting their
harvest in double.
The market and consumer
will have enough supply
and will be able to cope up
90% of the Market Buyer/consumer in high demand of crops
and products resulting to
the decrease of crop
value.
D. Expected Business Output
This project aims to achieve the following targets/results:
1) To help the farmers achieve enough harvest of
crops
2) To be able to have enough supply of crops and grains in the market
3) To be able to use natural/organic materials as boosters in crop
production.

Page 2 of 5
III. MARKET
A. Market Analysis

Problem/Gap in the Market Solution Who will Benefit

Within the production,
harvest and delivery
process of crops, it must
undergo intensive checking
Mainly, the one who
and verification to ensure
will benefit from this
the quality and condition of
The Quality and Condition of is not just the
it before supplying it to the
crops farmers but also the
market. Our business
market and
together with the natural
consumers.
factors that boosts crops
also include hands-on
services to ensure
production quality.
With the help of our
business innovation, the
Mainly, the one who
crops will have a high
will benefit from this
chance of boosting its
is not just the
Its high selling price production, leading to
farmers but also the
enough supply to the
market and
demand that will lead to the
consumers.
decrease of its original
selling price.

B. Supply Channel

Inputs/Equipment Source/Supplier Quantity Cost per Unit

to produce the of Input
product
Machinery Golden Harvest A set of machinery
Global Corporation that wil cover the Php 5000
work of mixing and
packaging
Containers Bestpak Packaging Several 100
Solutions Inc. containers as a Php 3000
starting amountof
containers needed.
Labor Local farmers 20 farmers 4000
Organic compounds SBS Philippine 75% of the organic 5000
Corporation compounds
utilities Electricity/Water Services free

Page 3 of 5
 C. Target Buyers

Product Target Buyer Volume Quantity to Selling Mode of

Requirement be Supplied price per Payment
by Project unit
Organic Farmers/crop 1 container
Fertilizers suppliers covers 3 90% of the 1,599 Buy now pay
hectares of farmlands in now but within
land the viscinity orders cash on
delivery is ope
Agricultural Farmers 1 set 2 teams of set 3,499 Cash upon
service services request
crops Consumers/ infinite 95% of the
market market Depends on
demand the Cash o
amoun/numbe delivery
r of orders

IV. PROJECT DETAILS

A. Labor Requirement

Type of Work Number of Wage per Person Man-days

Workers Needed per Day
Manager 1 500 5 days/week
Farmers 4 250 5 days/week
Store Attendants 5 250 5 days/week
Services line ups 5 250 5 days/week

B. Technical Aspect

PROCESSES IN PRODUCING THE PRODUCT

In the organic fertilizer the processes only revolves in mixing all of the needed
components To make the fertilizer. Right compounds and its volume in each
process are intensively Checked and made effectively. After the process of
mixing, the fertilizer undergoes testing To ensure the effectiveness of it in a
good way. After the testing it will come directly in repacking and distribution
within the farmers and the market.

In regarding of agricultural services , the management are ready to induce

Men line-ups that is skilled and well trained , in assisting different crops
Boosting methods. With the services we provide we make sure that the
Production of crops will be easy and prosperous.

Page 4 of 5
C. Financial Aspect

1. Cash Flow

See Annex A: Cash Flow

2. Projected Income Statement

See Annex B: Projected Income Statement

3. Financial Ratios

i. Return on Investment

Annual Net Income x 100

Total Project Cost

2,500 x 100 = 15.625

16,000

ii. Profitability Rate

Annual Net Income x 100

Annual Sales

2,500 x 100 = 2.941

85,000

iii. Payback Period (if applicable)

Loan x 100
Net Income x No. of period per year

Page 5 of 5
 V. PROJECT IMPLEMENTATION ARRANGEMENTS:

As our project/business mainly focuses in farmers and farmers, we implement

This innovation to help, nourish and make farmers have good harvest at every
end of season. Boosting the crops capability to produce enough supply has
been the downside of farming but with our project we hope to give help for the
better cause.

Monitoring and report of the project are executed every time the management
make a step in implementing the project such as observation, testing and
redesign. Partnerships will also be accepted, but it depends on the investment
offered to help the business and project outstand.

However the management also swears to take full responsibility whenever the
products produced caused damage and is ineffective towards its use. Legal
documents will be prepared in case of this emergencies.

Prepared by: Evaluated and Endorsed by:

Project Proponent Regional Director

Approved Disapproved

Page 6 of 5
 Annex A
Projected Cost and Return Analysis
For the Period of _January 1, 2022

PROJECTED REVENUES:
Gross Sales P 60,000
Less: Sales Returns, Discounts and Allowances 25,000
Net Sales P - 85,000

Less : PROJECTED COST OF PRODUCTION

Materials
P 10,000
Labor 4,000
Non-Cash Costs 2,000
Total Cost of Production P - 16,000

PROJECTED GROSS RETURNS/INCOME P - 101,000

Less : Operating Expense
Transport Cost P 9,500
Interest Expense 7,000
Repairs and Maintenance 10,000
Meals Expense 12,000
Insurance 15,000
Taxes and Licenses 20,000
Miscellaneous 25,000 - 98,500
PROJECTED NET RETURNS/INCOME P - 2,500

Return on Investment [(Projected Net Return x No. of Cycles per Year) / (Project Cost)]
= 0.156
= 0.312
= 0.468
 CASH FLOW Annex B

Year 1 Year 2 Year 3 Year 4 Year 5

INITIAL CAPITAL/
BEGINNING BALANCE 200,000 250,000 300,000 350,000 400,000
ADD: CASH INFLOW
Loan Proceeds 0 0 0 0 0
Capital Infusion 45,000 50,000 30,000 25,000 10,000
Cash Sales (Add back Depreciation) 30,000 40,000 20,000 35,000 15,000
Collections on Credit Sales 20,000 30,000 25,000 15,000 12,000
Income from investment, savings, 150,000 200,000 280,000 300,000 350,000
donations
Total Cash Inflow 245,000 320,000 355,000 375,000 387,000
LESS: CASH OUTFLOW
Materials, Labor, Overhead, etc. 20,000 25,000 18,000 30,000 22,000
Operating Expenses 98,865 99,230 99,595 99,960 100,325
Bill Payments 50,000 60,000 70,000 80,000 85,000
Other Project Cash Spending 40,000 35,000 42,000 50,000 55,000
Loan/Interest Payment 35,000 25,000 40,000 55,000 68,000
Total Cash Outflow 243,865 244,230 269,595 314,960 330,325
ENDING BALANCE 201,135 325,770 385,405 410,040 456,675

Note: The periods can be changed (e.g. monthly/less than 5 years)