Executive Summary

The Feasibility Study Report discusses the economic viability and profitability
of Cassava Flour Milling in Cavite. This was done through systematic gathering and
analysis of data which are internally and externally connected with the proposed
business venture. These data and information are reflected in six (6) major parts of
the study; legal, management, technical, marketing, socio-economic and financial
aspects.
Our company, Yucassava Milling Corporation can be located in Brgy. Conchu,
Trece Martires, Cavite having 1,000 square meters which consists of production and
office area. It was registered under Securities and Exchange Commission (SEC)
since it is a corporation. The required capital for this business will be ₱10,000,000.00
including pre-operating expenses and working capital. Our primary source of income
will be milling and selling cassava flours. Yucassava Milling Corporation will have
four departments; accounting, production, administrative, sales and marketing. There
will be 38 employees who will be working for the company including those in the
manufacturing process. For better management, we will be using “consultative style”
where employees are allowed to give their views and opinions before the top
management makes a decision.
Supply of raw materials will be coming from Quezon Province, the largest
area of Cassava roots production in CALABARZON. These raw materials will be
delivered to our receiving area. Cassava roots which will pass the total quality
inspection will be put into the manufacturing process. The process will start with
peeling, followed by grating, pressing/dewatering, granulating/sifting, drying, milling,
and lastly packaging. Machineries and equipment exclusive only for Cassava Flour
milling will be used such as peeling, drying, milling, packing machines, mechanical
grater, hydraulic press and grinder.
As for the demand of cassava flour in the whole country, the demand growth
rate is 1.63% and the supply growth rate is 0.35% . The target areas of Yucassava
Milling Corp. are the city of Trece Martires, Dasmariñas, Imus, General Trias and
Bacoor. The total populations of the market or the target retailers are 31 and out of
the total population 19 are surveyed. The data that are gathered in the survey are
their monthly demand, manner of ordering, price of the competitors, acceptability
rate and their manner of payment. As for the acceptability rate, the survey shows
that out of the 19 surveyed retailers, 17 will most likely to choose Yucassava or a
rate of 89.47%. The average monthly demand of each supplier is 51 sacks or a total
of 1581 sacks per month and a total of 18972 per year with an acceptance rate of
89.47%. As for the price of the competitor, the average price of their flour is P1585
while Yucassava's flour will be priced at P1400 per sack
The company will also do its duties and responsibilities to employees,
customers, government, economy, suppliers and community. An analysis of both the
internal and external factors affecting or connected with the company was made
which provided the data for our SWOT Analysis. The strengths of our business firm
are high quality products, clean and organized workplace, close monitoring, and
delivery to customers. The weaknesses include the company was just a new entrant
in the Cassava flour industry, accessibility of suppliers and highly perishable cassava
roots. Opportunities include abundance of cassava in the Philippines, diversity of
application and uses of cassava flour, government support and motivation and
location. There are also threats such as other wheat flour alternative manufacturers,
bad weather conditions and medical concerns regarding Cassava.
The capital requirements contributed by the incorporators will be ₱10,000,000
as a source of funding. The estimated payback period will be 5.79 years.
The budgeted sales of Yucassava Milling Corporation will be ₱24,544,966 in
the first year, ₱24,945,049 in the second year, ₱25,351,654 in the third year,
₱25,764,886 in the fourth year, and ₱26,184,853 in the fifth year. Net income after
tax for this time period will be ₱1,443,845 in year 1, ₱1,481,307 in year 2,
₱1,518,304 in year 3, ₱1,552,292 in year 4, and ₱1,587,297 in year 5.