A Feasibility Study on Establishing a

Service Truck for Canlaon Organic Farmer Organization

in Canlaon, Negros Oriental

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 Table of Contents
TITLE PAGE--------------------------------------------------------------------------------------------------------- 1
TABLE OF CONTENTS------------------------------------------------------------------------------------------ 3
INTRODUCTION-------------------------------------------------------------------------------------------------- 3
MARKETING STRATEGIES----------------------------------------------------------------------------------6
A. BUSINESS MODEL--------------------------------------------------------------------------------------------- 6
a.1 Customer Segment--------------------------------------------------------------------------------------- 6
a.2 Value Propositions--------------------------------------------------------------------------------------- 6
a.3 Channels---------------------------------------------------------------------------------------------------- 7
a.4 Customer Relationship---------------------------------------------------------------------------------- 7
a.5 Revenue Streams----------------------------------------------------------------------------------------- 7
a.6 Key Resource---------------------------------------------------------------------------------------------- 7
a.7 Key Activities----------------------------------------------------------------------------------------------- 8
a. 8 Key Partners---------------------------------------------------------------------------------------------- 8
a.9 Cost Structure--------------------------------------------------------------------------------------------- 9
B. MARKET GAP ANALYSIS------------------------------------------------------------------------------------ 9
C. SERVICE PRICING--------------------------------------------------------------------------------------------- 9
D. MARKETING STRATEGY----------------------------------------------------------------------------------- 10
TECHNICAL SERVICE---------------------------------------------------------------------------------------- 14

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 A. SERVICE FLOW---------------------------------------------------------------------------------------------- 14
B. ANNUAL PRODUCTION & SERVICE---------------------------------------------------------------------- 15
C. LOCATION MAP (CANLAON------------------------------------------------------------------------------- 16
D. TRUCK SPECIFICATIONS----------------------------------------------------------------------------------- 16

MANAGEMENT-------------------------------------------------------------------------------------------------- 19
A. ORGANIZATIONAL STRUCTURE-------------------------------------------------------------------------19
a.1 Position and Functions-------------------------------------------------------------------------------- 20
a.2 Qualification--------------------------------------------------------------------------------------------- 20
a.3 Employment Benefit-----------------------------------------------------------------------------------21
a.4 Insurance------------------------------------------------------------------------------------------------- 21
SOCIO-ECONOMIC IMPACT------------------------------------------------------------------------------- 22
A. SOCIO-ECONOMIC AND ENVIRONMENTAL GOALS-------------------------------------------------22
FINANCIAL-------------------------------------------------------------------------------------------------------- 26
REFERENCES----------------------------------------------------------------------------------------------------- 27

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 INTRODUCTION

The archipelagic nation of the Philippines boasts a plethora of fertile lands, which serve as
the lifeblood for the majority of its people, enabling them to sustain their livelihoods and
contribute to the collective welfare of society. The Philippines is predominantly characterized as
an agrarian nation, wherein a significant proportion of the Filipino population resides in rural
regions and sustains their livelihoods through engagement in agricultural pursuits. According to
recent statistical data, approximately 25% of the employed population in the Philippines is
engaged in the agricultural sector, which comprises four distinct sub-sectors: farming, fisheries,
livestock, and forestry. The sector in question produced a gross value added (GVA) of
approximately 1.76 trillion Philippine pesos in the year 2021, representing a 9.6 percent portion
of the nation's gross domestic product (GDP). Nevertheless, due to the extended period of
lockdown implemented in response to the global COVID-19 pandemic, coupled with the
occurrence of natural disasters within the nation, the gross output of the sector experienced a
contraction of 1.7 percent during that particular year (Statista Research Department, 2023). In
light of the formidable obstacles posed by natural calamities and insidious ailments that elude
visual recognition, it is the agriculture farmers who wield the pivotal role in combatting global
food scarcity, while simultaneously exerting a profound influence on the financial framework of
nations by steadfastly nourishing the people they serve. Nevertheless, it is worth noting that the
majority of these diligent agriculturists primarily inhabit regions characterized by rugged
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topography, thereby presenting a formidable obstacle in their daily activities. The area of
transportation assumes a paramount significance within the scope of a farmer's endeavors,
assuming an integral function in facilitating the process of the transportation of agricultural
produce, equipment, and supplies. Yet farmers frequently encounter formidable obstacles in this
regard.
One of the primary challenges lies in the constrained accessibility of rural regions, wherein a
multitude of agricultural establishments are situated. The dearth of road infrastructure and the
insufficiency of public transportation pose formidable challenges for farmers in their endeavor to
effectively transport their agricultural commodities to markets or distribution centers. This
phenomenon has the potential to bring about temporal setbacks and escalate financial
expenditures, thereby exerting a detrimental influence on the state of freshness and caliber of the
agricultural yield. Furthermore, the volatile nature of fuel prices exacerbates the financial
constraints faced by farmers, thereby affecting their capacity to procure transportation services
for the conveyance of their agricultural produce and machinery. Furthermore, the dearth of
contemporary transportation technologies and equipment may impede the efficacy and celerity of
transporting agricultural commodities, thereby engendering potential detriments in the form of
spoilage or impairment. The prevailing atmospheric conditions also present a formidable
obstacle. Inclement weather conditions, such as copious precipitation or substantial rainfall,
possess the capacity to render roadways impassable, thereby exacerbating the already arduous
and perilous nature of transportation for farmers. This phenomenon has the potential to cause
significant disruptions within supply chains, thereby hindering the prompt delivery of goods to
purchasers.
The local government unit (LGU) in Canlaon has the responsibility of overseeing and
addressing the multifaceted challenges pertaining to transportation within the limits of its
authority or the organization as they assume an essential part in guaranteeing that farmers are
endowed with access to efficacious and dependable transportation systems. Through the strategic
allocation of resources towards the development and optimization of transportation
infrastructure, the government possesses the capacity to profoundly augment the agricultural
sector. The local government unit (LGU) endeavors to offer incentives and grants to facilitate the
adoption of modern transportation technologies, such as hauling trucks, which have the potential
to augment the efficiency and caliber of agricultural transportation. These technological

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advancements have the potential to effectively uphold the optimal freshness and superior quality
of agricultural produce throughout the transportation process, thereby leading to a notable
increase in market value for diligent farmers. The imperative nature of the government's
proactive engagement and endorsement in advancing modern transportation technologies cannot
be overstated, as it represents a pivotal stride in guaranteeing that farmers are equipped with
optimal transportation solutions to cater to their agricultural requisites.
The work of hauling trucks confers myriad advantages upon farmers engaged in the realm of
agriculture and agribusiness for the farmers in the organization. Haulage vehicles, commonly
referred to as transport or hauling trucks, assume a crucial function in the conveyance of
agricultural commodities, thereby enabling streamlined logistics and seamless operational
processes. Primarily, the utilization of hauling trucks facilitates the transportation of agricultural
commodities across extended geographical spans, thereby affording farmers the opportunity to
effectively convey their produce. The expansion of reach in question presents an auspicious
prospect for farmers, as it grants them access to broader market horizons, thereby enabling them
to establish connections with consumers residing beyond the confines of their immediate
vicinity. It facilitates the expansion of their customer demographic and potentially procures more
favorable remuneration for their agricultural yield. The presence of hauling trucks enables
agricultural practitioners to optimize their supply chain operations and efficiently oversee
inventory management. Farmers possess the capacity to strategically devise their harvest and
distribution schedules with enhanced efficacy, thereby mitigating wastefulness and guaranteeing
punctual deliveries to both purchasers and distributors. Furthermore, the allocation of resources
for the acquisition of this transportation vehicle by the Local Government Unit (LGU) serves as
a form of dividend bestowed upon the farmers upon the culmination at the end of the quarter.
The remaining portion of the income is allocated towards the enhancement of the association,
encompassing the improvement of their facilities, meeting spaces, and the acquisition of
advanced mechanized tools, among other pertinent investments.

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 Marketing Strategies

A. Business Model

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 Figure 1. Business Model Canvas

a.1 Customer Segment

The customer segments within this particular business encompass small, medium, and
large-scale farmers within the organization who necessitate the utilization of hauling trucks
for diverse agricultural undertakings in the region of Canlaon. This will also contribute to the
establishment of agricultural cooperatives, wherein a collective of farmers jointly possess and
utilize a fleet of hauling trucks for communal purposes.

a.2 Value Propositions

Within the realm of this tractor enterprise, the value propositions manifest as the
distinctive merits and privileges that our esteemed organization possesses the capability to
provide. These are the value propositions inherent within our business model:

 High Performance and Efficiency

 Durability and Reliability
 Versatility and Adaptability
 Innovative Technology and Features
 Customer Support and Services
 Cost-effectiveness Financial and Leasing Solutions
 Ease of Use and Safety

a.3 Channels
The integration of our various channels facilitates the efficient marketing of our tractor
products, fostering customer engagement and ensuring broad availability and accessibility to
our intended target market. The channels include the following:

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  Retailers (Paunayan)
 Hotel and Restaurants (Bethel)
 Supermarket (Cangs)
 Local Market

a.4 Customer Relationship

Establishing and nurturing robust client connections is crucial for ensuring sustained
success and expansion within the tractor industry. This approach guarantees the appropriate
selection of the hauling truck model and accompanying accessories. Our hauling service
provides timely and effective post-purchase services, maintenance, and repairs, assuring a
favorable client experience during the whole lifespan of the truck. The subsequent elements
encompass a state of unobstructed and lucid correspondence with clientele. Ensure that the
individuals are duly apprised of pertinent details pertaining to the current state of their
shipment and anticipated timeframes for delivery, as well as any potential setbacks or
complications that may manifest during the course of transportation. Leverage the valuable
insights provided by farmers’ feedback in order to effectuate essential enhancements to the
hauling truck services. It is imperative to duly consider and give weight to the suggestions
put forth by individuals, and subsequently execute alterations that serve to augment the
holistic experience of the clientele.

 Transparent communication
 Face-to-face Timely Updates
 Feedback Integration

a.5 Revenue Streams

The service's revenue system is derived from government contracts, bids, and subsidies
pertaining to the provision of hauling trucks for the association's agricultural development
endeavors, facilitating the transportation of goods from the market to the input subsystem.

a.6 Key Resource

The following are the business’ key resources that are critical assets, capabilities, and
inputs required to design, produce, market, and operate tractors efficiently:
 Manufacturing Facilities: Production facilities that are furnished with machinery and
infrastructure for the purpose of assembling and producing hauling trucks and their
corresponding components are essential in ensuring the smooth operation and
efficient delivery required by farmers.
 Qualified Drivers and Staff: The acquisition of seasoned and competent drivers,
alongside adept administrative and support personnel, assumes paramount importance
in the effective management of logistical operations, scheduling intricacies,
meticulous documentation, and the provision of exemplary customer service.
 Fuel
 Market Access and Networks
 Insurance

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a.7 Key Activities

The main focus of this model involves acquiring services that are dedicated to inspecting and
maintaining transportation vehicles. To guarantee the effectiveness of this objective, it is
essential to include the following important efforts:

Operation Management: It is crucial to consistently perform detailed inspections and

maintain the hauling truck properly. This involves a thorough inspection of the engine,
brakes, tires, lights, fluid levels, and other important components, with the main goal of
ensuring a safe and reliable operation. Carefully perform the task of properly loading and
unloading cargo, while ensuring its secure fastening and even distribution within the truck.
Follow the recommended loading protocols to minimize the chances of any harm during
transportation. Create an efficient itinerary by considering factors like traffic congestion,
road conditions, and distance between locations. Utilize the Global Positioning System
(GPS) alongside a highly skilled team of drivers and staff who have extensive knowledge of
the roadways to ensure accurate navigation and timely arrival at designated destinations. It
is crucial to fully comply with all traffic laws, regulations, and industry standards in the
trucking sector. This involves following weight restrictions, sticking to designated speed
limits, and carefully adhering to the hours-of-service regulations. Make sure to maintain
accurate records of excursions, consignments, fuel acquisitions, upkeep chronicles, and any
other necessary documentation for compliance and financial accountability. Make sure that
the drivers and staff are highly knowledgeable about emergency protocols, have the
necessary safety equipment, and are capable of handling unexpected situations like accidents,
mechanical failures, or any other unforeseen events.

a. 8 Key Partners
Prominent collaborators and stakeholders within this particular business framework
encompass the subsequent entities:
 Farmer Organization
 Suppliers
 Manufacturer and Producers
 Government and Regulatory Bodies

a.9 Cost Structure

Fixed Cost: The main factor influencing expenses in this business is the purchase of a
hauling truck, which represents a significant and fixed cost.
 Insurance
 License and Permits
 Utilities
Variable Cost: The key cost factors for this enterprise include fuel, maintenance, and salaries
and wages. Moreover, it is important to consider the extra costs that come with maintaining
and restoring the vehicle, which start off low but gradually increase as the truck gets older.
 Manual labor/employees
 Risk loss
 The capital and operational expenses associated with the use of vehicles for the
purpose of hauling
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B. Market Gap Analysis

Within the hauling truck services industry, a thorough market gap study indicates a
significant disparity between the current services offered and the changing demands of customers
and businesses. The existing services generally prioritize the transportation of regular
commodities, neglecting the growing need for specialized transport solutions for delicate,
temperature-sensitive, or high-value cargo. Furthermore, there is an increasing focus on
sustainability and methods that are kind to the environment. This highlights a market opportunity
for transportation solutions in the haulage business that are cognizant of ecological impact.
Moreover, the rise of online commerce and the resulting increase in final-stage deliveries have
emphasized the need for effective and flexible transportation services that can meet the specific
requirements of this quickly growing-industry. Capitalizing on these deficiencies offers
significant potential for pioneering transportation truck services that use cutting-edge technology,
sustainable practices, and specialization to meet the changing demands of the market.

C. Service Pricing
The cost of the service is determined by the farmers' ability to pay, with a preference for lower
prices while still providing a good service. The transportation fee for the farmers' products is
10 php per kilogram. The proponents choose to use competitive pricing strategies in order to
effectively compete with other goods carriers in the vicinity. In order to meet the demands of
clients in different target categories, several service providers provide a variety of services at
varying price levels.

Factors
The hauling service has to consider a number of criteria when determining how much to charge
for the services. Internal and external considerations are two key components.

 Internal factors
In order to optimize the efficiency, safety, and profitability of the hauling service, it is
crucial to take into account many internal elements. These variables include fleet
management and maintenance, regulatory compliance, customer service and client
relations, as well as risk management and insurance. Implementing maintenance plans
and procedures is crucial for maintaining the fleet in its best possible condition, reducing
fuel consumption, minimizing downtime, and maximizing efficiency. Complying with
transportation rules at the municipal, city, and regional levels, which include permits,
licenses, weight limitations, and environmental criteria. Ensuring customer satisfaction
by establishing effective contact with customers to comprehend their requirements and
expectations. Lastly, it is important to assess and mitigate the risks connected with
accidents, damage to products, and other possible liabilities in order to safeguard against
financial losses.

 External Factors
External considerations include demand, competition, and economic circumstances.
Comprehending the market requirements for transportation services, including the

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 quantity of items to be conveyed and fluctuations based on seasons. Assessing the
impact of new rivals or possible alliances on the competitive landscape of the hauling
truck service business.

D. Marketing Strategy

Figure 2. Marketing Strategies (Product, Price, Placement, and Promotion)

 Product
The primary reason for the hauling truck service is that to provide a hauling service of
goods within the specific organization due to its needs according to the local government
unit in the municipality.

 Price
The pricing of the service is in line with the economic and competitive value of the
service. Additionally, the consideration of labor, and organic materials for the vessels of
the specific goods.
 Placement
The placement refers to the address of the farmer’s organization where corporate farmers
may easily access the place of the service.
 Promotions
This is a reference to the action taken to inform the clients about the product. The
application of the practice is to provide a dividend of 12% after a year running of the
service to provide the organization improvement in their social, personal and
infrastructure liaiblities.

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E. SCOT Analysis (Strength, Challenge, Opportunity, and Threats)

This particular segment discusses the Strengths, Challenges, Opportunities, and Threats,
which serve as a strategic management instrument employed to appraise and scrutinize the
intrinsic and extrinsic elements that possess the potential to impact the triumph and endurance of
the hauling truck service.

Figure 3. SCOT Analysis (Strength, Challenges, Opportunities, and Threats)

Strengths

 Reduced Inventory Holding Time

 Reliability and Timeliness
 Cost-Effective Transport
 Capacity and Volume Handling

Challenges

 Fuel Costs and Price Volatility

 Infrastructure and Road Conditions
 Customer Service Demands

Opportunities

 Perishable Produce Transportation

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  Supply Chain Optimization
 Farm-to-Table Logistics
 Timely Harvest Transportation

Threats

 Regulatory Changes and Compliance Burden

 Driver Shortage
 Environmental Concerns and Regulations

Technical Service
A. Service Flow:

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 Schedule of trip
DUMAGUETE CITY M W
BACOLOD CITY T TH

Figure 3. Trip Schedule

The Canlaon Organic Farm Association management determines the schedule for
the trips to Dumaguete City and Bacolod City, considering factors such as demand,
logistics, and transportation availability. Customers who wish to purchase organic
goods from Canlaon Organic Farm Association place their orders in advance,
providing details such as quantity and type of products. The staff collects the orders
received and compiles them for efficient delivery planning. Prior to the scheduled
trips, the organic goods are prepared for transportation, including packaging, sorting,
and ensuring optimal condition. On the scheduled days, the management confirms
the trip and ensures necessary arrangements are in place. The goods are loaded onto
the delivery vehicle, organized and secured properly. The delivery vehicle departs
and follows the predetermined route and schedule to Dumaguete City, ensuring safe

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transportation. Upon reaching Dumaguete City, the staff unloads and delivers the
goods to respective customers based on their orders. After completing the deliveries,
the delivery vehicle returns to Canlaon City. The same process is followed for the trip
to Bacolod City, with delivery and return to Canlaon City. Once back at the
association, necessary post-trip activities are conducted.

b. Annual Production & Service:

Type of Commodities Volume in Tons

Produce (Weekly Produce)
Lettuce 3
Carrots 6
Broccoli 3
Cauliflower 3
Cabbage 1.5
Dairy Product 3.5

Type of Commodities Volume in Kilograms

Deliver to Bacolod (Twice A Week)
Lettuce 1,800
Carrots 3,600
Broccoli 1,800
Cauliflower 1,800
Cabbage 900
Dairy Product 2,100

Type of Commodities Volume in Kilograms

Deliver to Dumaguete (Twice A Week)
Lettuce 1,200
Carrots 2,400
Broccoli 1,200
Cauliflower 1,200
Cabbage 600
Dairy Product 1,400

The farmers will supply different types of commodities depending on the specific
areas they are targeting, which include Dumaguete City and Bacolod City. The
farmer association offers a diverse range of fresh produce on a weekly basis. We

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have a plentiful supply of lettuce, carrots, broccoli, cauliflower, cabbage, and dairy
products. Our commitment to quality ensures that you receive the finest ingredients
for your creative and academic endeavors. The foundation of the yearly production
service relies on the weekly volume of goods delivered in a double shipment.

c. Location Map (Canlaon):

Figure 5. Location Map of the Service

d. Truck Specifications:
The hauling/Canter truck provided by the organization has the following
specifications:

 Vehicle Type:
- Hauling truck/Canter
- Suitable for transporting organic vegetables

 Detailed Sketch:

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 Figure 5.1. Detailed Sketch plan of the hauling truck

 Capacity:
- Maximum load capacity: 6 tons
- Adequate space to accommodate large quantities of vegetables

 Dimensions:
- Length: [___]
- Width: [___]
- Height: [___]
- Consideration for an optimal size that allows for easy maneuverability
and efficient loading/unloading of produce

 Engine:
- Engine type: [(type of engine, e.g., diesel)]
- Engine power: [(horsepower or kilowatt rating)]
- Efficient and powerful engine to handle the weight of the loaded
produce and various terrains

 Transmission:
- Transmission type: [(transmission, e.g., manual, automatic)]
- Number of gears: [__]
- Smooth and reliable transmission system for seamless operation and
ease of use

 Suspension:
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 - Suspension type: [(type of suspension system, e.g., leaf spring, air
suspension)]
- Adequate suspension to handle the weight of the loaded produce,
ensuring a smooth and stable ride

 Body Construction:
- Material: [(material used for the body construction, e.g., steel,
aluminum)]
- Robust and durable body construction to withstand heavy loads and
provide adequate protection for the produce

 Loading and Unloading Mechanism:

- Tailgate: [(the type of tailgate, e.g., hydraulic, manual)]
- Ramp or lift mechanism: [____]
- Efficient and user-friendly loading and unloading mechanism to ensure the
safe handling of produce

 Safety Features:
- Braking system: [(the type of braking system, e.g., hydraulic, air)]
- Lights and reflectors: [(he type and placement of lights and reflectors)]
- Safety features such as seatbelts, emergency exits, and fire extinguishers

 Fuel Efficiency:
- Fuel consumption: [(the average fuel consumption per kilometer or mile)]
- Consideration for fuel-efficient technology to minimize operating costs and
reduce environmental impact

 Maintenance and Service:

- Easy access to essential components for maintenance and repairs
- Availability of authorized service centers and spare parts

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 MANAGEMENT

A. Organizational Structure

Organization
(Canlaon Organic Farmer’s
Association)

President of the
Organization

Assigned Manager
of the Hauling

Hauling Truck
Driver

Helper #1 Helper #2

Figure 6. Structural Organization Chart

The Local Government Unit (LGU) of Canlaon grant a hauling truck to the Canlaon

Organic Farmer’s Association. The organization will supervise its operations and services. The

President will assign a man from the organization who will receive the service request and do the

record keeping. The Hauling Truck Driver will drive the hauling truck, accompanied by the two

helpers who are responsible for loading and unloading of the crops or other products.

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a.1 Position and Functions
Hauling Truck Driver - The Hauling Truck Driver will be responsible in taking control,

driving, and maintaining the condition of the hauling truck. He will deliver the crops to its

specific location based on the request of the client, ensuring that the products will safely arrive to

its destination.

Helper - The two helpers will be assigned to assist the hauling truck driver and be a

substitute driver in case of emergency. They will do the loading and unloading of products.

a.2 Qualification
For the Hauling Truck Driver:

 Male, around 25 - 50 years old

 A high school diploma

 Must have a Driver’s License for 10 wheeler truck

 Driving NC II holder

 A clean driving record

 With atleast 1 year driving experience

 Familiar with the area roads or knowledgeable in using GPS devices

 In good health condition

For the Helpers:

 Male, around 25-50 years old

 A high school diploma

 Must have a valid Driver’s License for 10 wheeler truck

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 Physically fit and is able to lift heavy materials

 Professional attitude

a.3 Employment Benefit

The Hauling Truck Driver and two Helpers have the following benefit upon employment:

 Daily food allowance of nine hundred pesos (Php 900.00) for the driver and the two helpers.

 Pag-IBIG Fund membership

 PhilHealth health insurance

 SSS Insurance Benefits

 A salary of five hundred pesos (Php 500.00) per day for the hauling truck driver, and four

hundred pesos (Php 400.00) each per day for the two helpers.

 Travelling allowance that will depend on how far and how long the travel will be.

a.4 Insurance
The Hauling Truck Driver and the two Helpers will be registered and covered by the

following:

 Social Security System (SSS) Insurance with benefits such as paid leave, retirement cash

benefit, death benefit, and funeral benefit.

 Pag-IBIG Fund membership that gives them easier access to savings and loan programs, and

provident benefit that can be claimed upon retirement or separation from service.

 PhilHealth that provides health insurance in case of situations where the driver or helpers

need medical and professional treatment.

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 SOCIO-ECONOMIC IMPACT

Socioeconomic impact is a term that describes the effects of different factors, policies, or
events on the social and economic welfare of individuals, communities, or societies as a whole.
The scope of this concept includes a wide range of outcomes and considerations.
The significant impact of hauling trucks on society and the economy demonstrates a multitude of
features and substantiality. Thus, it is imperative that collaboration between stakeholders,
including local communities, businesses, government agencies, and agriculture industry, is
essential to achieve a balanced and positive socio-economic impact.

a. Socio-Economic and Environmental Goals

Socioeconomic and environmental goals involve goals and objectives established by
communities, organizations, and governments to attain favorable outcomes across social,
economic, and environmental aspects. Typically, these goals and objectives are often aligned in
accordance with the broader principles of sustainability and utilization, with the aim of achieving
a balance between economic prosperity, social welfare, and environmental conservation and
preservation.

Direct and Indirect Beneficiaries of the Project

Hauling trucks for fruits and vegetables benefit a diverse range of sectors within the
economy, both directly and indirectly. First to benefit directly from the project as a whole are the
farmers and growers of various fruits and vegetables in Canlaon City. Farmers and growers
benefit directly from hauling trucks as it can provide a means to transport their produce from
farms to markets or processing facilities efficiently. Second to benefit directly from the project is
the truck owner and operator. In this case, the owner of the truck is the LGU of Canlaon City,
operated by the Canlaon Organic Farmers Association. The association can directly benefit from
it because it can generate income through the delivery of fruits and vegetables and other farm
inputs and products. Next direct beneficiaries are the wholesalers and distributors of fresh fruits
and vegetables. Through the hauling truck, the goods will be received and distributed efficiently.
Further, retailers can also directly benefit from this project. Currently, the association already
established their connections on some of the restaurants and local stores in the city of Dumaguete
and Bacolod. Grocery stores, supermarkets, and other retailers benefit directly by having a steady
and reliable supply of fresh fruits and vegetables brought to their locations. Lastly, consumers
benefit directly through the project by having access to a consistent and varied supply of fresh
fruits and vegetables in local markets and stores.
The indirect beneficiaries are those that are not directly engaged in trucking but can
derive benefits from the efficient movement of goods facilitated by hauling trucks. This extend
beyond the immediate stakeholders involved in the trucking industry. Indirect beneficiaries may
include drivers, logistics coordinators, mechanics, and other support staff. The trucking industry
may give job opportunities to these few individuals. The governments can also benefit indirectly
through the taxes and fees generated from the trucking industry, contributing to public revenue.
Knowing the the direct and indirect beneficiaries of hauling trucks for agricultural goods
and products helps in evaluating the broader economic and societal impact of an efficient
transportation system in the agriculture supply chain. It also highlights the interconnectedness of
various sectors in the economy.

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Effect of the project to the community
The presence of hauling trucks in a community can have several effects, influencing
various aspects of community life, economy, and infrastructure. The hauling truck may have a
positive effect to the Canlaon City as a whole and most specifically to those members of the
association. Farmers and agricultural producers benefit from improved market access as hauling
trucks facilitate the transportation of agricultural products to various markets, expanding the
reach of local products. Increased market access can lead to higher incomes for farmers,
contributing to the economic well-being of the community.

b. Risk Management Process

The process of managing risks for hauling trucks entails identifying potential risks,
evaluating their probability and impact, devising strategies to mitigate or manage those risks, and
implementing monitoring and control measures.
Below is the table showing some risks that may be encountered by the project and
possible actions to manage and/or control it.
Table 1. Risk and Risk Management Process
Possible Risk Management Process
Traffic Accidents: Hauling trucks may be involved in accidents due to factors like poor road
conditions, driver fatigue, or other drivers’ behavior. Driver Training and Safety
Programs: Implement training programs for drivers to enhance safety awareness and defensive
driving skills.
Cargo Damage or Loss: Risks associated with damage, spoilage, or loss of cargo during
transportation. Cargo Securement Procedures: Develop and enforce procedures for properly
securing and protecting cargo during transit.
Regulatory Compliance: Risks related to compliance with transportation regulations, such as
load limits, hours of service, and safety standards Compliance Management: Regularly
monitor and update compliance with transportation regulations to avoid legal issues and
penalties.
Equipment Breakdown: Mechanical failures or breakdowns in hauling trucks can disrupt
operations. Regular Vehicle Maintenance: Establish a routine maintenance schedule to ensure
that trucks are in optimal condition, reducing the risk of breakdowns.
Environmental Impact: Risks associated with the environmental impact of trucking operations,
such as emissions and fuel spills. Environmental Sustainability Practices: Implement
practices that reduce the environmental impact of hauling operations, such as fuel-efficient
driving and waste management.

The risk management process is essential and should be an integral part of the overall
management system for hauling operations. By identifying, assessing, and addressing risks,
companies and or associations and cooperatives can enhance the safety of their operations,
protect their assets, and contribute to the overall sustainability of their hauling activities.
Impact Assessment
The impact assessment of having hauling trucks involves evaluating the positive and
negative effects that these trucks have on various aspects of the economy, environment, and
society. Impact analyses guarantee that better decisions about a project can be made at an early

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stage of a project. Through impact assessment, negative consequences may be avoided,
environmental risk may be lowered and most especially human health may be safeguarded.
Environmental Impact Assessment
An environmental impact assessment for hauling trucks involves evaluating the potential
environmental effects associated with the operation of these trucks. The assessment aims to
identify, analyze, and mitigate potential negative impacts while considering the overall
sustainability of the trucking operations. An effective environmental impact assessment for
hauling trucks involves ongoing monitoring, collaboration with stakeholders, and a commitment
to implementing measures that reduce the environmental footprint of trucking operations.
One environmental impact of hauling truck is noise pollution. Noise is generated by hauling
trucks during transportation activities. The potential impact of truck noise on nearby
communities, especially in residential areas should be evaluated. However, this could be
mitigated by implementing noise reduction strategies, including using quieter technologies,
optimizing routes to avoid residential areas during sensitive hours, and establishing noise barriers
where appropriate.
Another environmental impact identified is traffic and congestion. With this, traffic management
plans should be developed, explore alternative delivery schedules, and invest in infrastructure
improvements to minimize traffic disruptions and enhance safety.
The most crucial environmental impact is the greenhouse gas emissions. To mitigate this,
measures to reduce carbon emissions should be implemented such as adopting fuel-efficient
technologies, exploring alternative fuels, and participating in carbon offset programs. Further, a
strict adherence on gas emissions test should be implemented.
Further, practices should be regularly updated to align with changing regulations, conduct
regular environmental audits, and implement corrective actions as needed. Sustainable practices,
technology adoption, and regulatory compliance are key components of a comprehensive
environmental impact management strategy.

Social Impact Assessment

A social impact assessment involves examining the effects that the presence and
operation of these trucks have on the well-being, safety, and quality of life of individuals and
communities.
The availability of hauling truck to be operated by the association will give job
opportunities. It can create job and can create direct employment opportunities for truck drivers
laborers or support staff and mechanics. This employment opportunity leads to income
generation which can contribute to economic growth, supporting the livelihoods of individuals
and the farmers or producers. Moreover, the availability of hauling truck could further give
market access for producers. Hauling trucks enable transportation of goods be accessible to a
broader range of markets. This in return can lead to increased income and economic
empowerment for local producers. The most important positive social impact of having a hauling
truck is the access to goods for consumers. Through hauling trucks, a consistent and diverse
supply of agricultural products goods, including fresh and highly perishable products could be
ensured, benefiting local consumers. It could further lower transportation or distribution cost,
leading to a more affordable products for consumers. Further, efficient transportation of goods or
agricultural products may help in minimizing postharvest losses due to damages during transport
hence reducing food wastage.

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Business Impact Assessment
A business impact Assessment involves evaluating the effects of incorporating and
operating hauling trucks within a business model. This assessment considers various aspects
related to the company’s or association’s operations, financial performance, and overall business
strategy.
This hauling truck as a business could generate revenue. Hauling trucks could provide revenue
through the provision of transportation services, delivering agricultural products for clients and
customers. Revenue generation can be directly linked to the volume and frequency of transported
goods.
Through the hauling trucks, local agriculture producers may expand their market reach by
transporting goods to different places and markets. Access to broader markets can contribute to
the growth of the customer base. Further, reliable transportation can help reduce instances of
stock outs, enhancing customer satisfaction.
However, there are also things to consider for hauling trucks as a business. First is the
operational costs. Fuel costs can have a significant portion of operational expenses, subject to
fluctuations in fuel prices. Regular maintenance and repairs of hauling trucks contribute to
operational expenditures as well. Periods of maintenance and repair may result in hauling trucks
being temporarily out of service, affecting operational efficiency. However, these factors could
be mitigated by implementing cost management strategies to control fuel expenses and could
perhaps make arrangements in purchasing fuel to mitigate fuel costs. As for the maintenance, the
association will implement proactive maintenance planning to reduce downtime and ensure that
hauling trucks are in optimal condition.

Economic Impact Assessment

An economic impact assessment involves evaluating the effects that the presence and
operation of these hauling trucks have on various economic factors, both at the micro
(association) and macro (regional/national) levels.
The Canlaon Organic Farmers Association will comprehensively analyze the costs and
benefits associated with the hauling truck that they will operate. Through this, they can
maximize positive economic impacts and mitigate negative impacts through effective
management strategies, continuous monitoring, and adaptation to changing economic
conditions.
For the macro level, the hauling truck that the association will operate will contribute to
government revenue through taxes, including vehicle registration fees, fuel taxes, and corporate
taxes. In micro level on the other hand, the project will support the agriculture industries through
efficient transportation and distribution of the agricultural products leading to increase in
business ventures. Efficient transportation supports the entire supply chain, contributing to the
economic activities of producers, wholesalers, and retailers.
Cost Benefit Analysis
Cost-benefit analysis is a systematic process for evaluating the economic feasibility of a
project or decision by comparing the total expected costs with the total expected benefits. This
analysis helps decision-makers assess whether the benefits outweigh the costs and whether the
project is economically viable.
Through the financial aspect of this study, it has been shown that

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 Financial

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 References:

Link: Topic: Agriculture in the Philippines. (2023, July 5).

Statista. https://www.statista.com/topics/5744/agriculture-industry-in-the-philippines/

#topicOverview

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