I.

INTRODUCTION

To say that a Filipino likes to eat is an understatement. ‘Like’ is not quite the term to

describe the relationship between a Filipino and food.

An average Filipino eats at least four times a day. The daily meal consists of; breakfast,

lunch, snack, and supper. Snack is somewhat not just an optional meal. It is part of the daily meal

for the Filipino. It is a need and not just a want. Sometimes, these four meals stretch to six meals!

The daily meal will then be consisted of breakfast, snack, lunch, snack, supper, and finally-

snack.

Nowadays, snack is popular food item which still get a steady increase in the market size.

It can be found in nearly every corner of the world and have been on sale for thousands of years.

Such foods are unique, provide a nutritional source based on traditional knowledge, mostly

follow the seasonality of farm production and thus allow for variation in customer diets, and are

widely distributed in both urban and rural setting.

People today often focus on the outer quality of the products and in its taste. They are

disregarding the real importance of the food they are eating, not just to satisfy their hunger but

also to absorb nutrients to have a healthy body and live a happy life.

The proponents come up to a food that was not widely known that can be used as a

substitute to the common snacks and will also provide more nutrients which is good for the body.

Does ‘Chicharong Pamaypay’ sounds new to you? Compared to the famous ‘Chicharong

Bulaklak’, made from ruffled fat of a pig, ‘Chicharong Bituka’, made from intestines of pork or

beef or even chicken, well, ‘Chicharong Pamaypay’ is a deep fried Oyster Mushroom Florida,

scientifically known as Pleurotus Florida.

 Chicharon was commonly-known made from meat. It is a dish generally consisting of

fried pork belly or any cuts and parts of pork, beef, chicken or any meat. The skin of the pork is

the usual type of a chicharron, it has been seasoned and deep-fried.

Folklores describe mushrooms as a prohibited place where dwarves live and dangerous

plant to be eaten because it’s poisonous. But in the present times, mushrooms are well-studied by

the professionals about the nutrients that can be obtained. Mushrooms are rich in proteins,

vitamins, and minerals and popularly called as the vegetarian’s meat. Mushroom proteins are

considered to be intermediate between that of animals and vegetables (Kurtzman, 1976) as it

contains all the nine essential amino acids required for human body (Hayes and Hoddad, 1976).

Chicharong Pamaypay is not created just to earn profit, it is catalyse to promote healthy

and happy living.

II. PROJECT SUMMARY

2.1 NAME OF THE PROJECT

Names have power. They indicate tone and the intent. They can, if chosen well, inspire

and unify action. It determines whether a product will be a success or failure by the consumers’

first impression. It must be catchy, easily understand, pronounced, remembered and took a click

in their mind that made them curious.

The product was named ‘Chicharong Pamaypay’, a Filipino term for Deep Fried Oyster

Mushroom. The proponents wants to inform the consumers that the product is 100% well-made

by a Filipino. The product was made from the main ingredient Oyster Mushroom commonly

known in the Philippines as mushroom fan because of its shape. The word ‘fan’ means

‘pamaypay’ or the traditional Filipino hand-held fan that was made from stems and leaves of

Abaniko plant. While chicharron, the group decided to deeply fry the mushroom so it can be used

as a substitute for meat-made chicharron that are already familiar to all. They also figured-out

that the product will have a high rate of success because Filipinos really love eating and

exploring unique foods that will satisfy their taste buds resulting to an easy welcome to the

business world.

2.2 DESCRIPTION OF THE INDUSTRY

The Food Industry is a complex, global collective of diverse businesses that supply most

of the food consumed by the world population. Food processing is the transformation of raw

ingredients, by physical or chemical means into food, or of food into other forms. Food

processing combines raw food ingredients to produce marketable food products that can be
easily prepared and served by the consumer. Food processing takes clean, harvested components

and uses them to produce marketable food products.

Food processing dates back to the prehistoric ages when crude processing incorporated

fermenting, sun drying, preserving with salt, and various types of cooking (such as roasting,

smoking, steaming, and oven baking). Evidence for the existence of these methods can be found

in the writings of the ancient Greek, Chaldean, Egyptian and Roman civilizations as well as

archaeological evidence from Europe, North and South America and Asia. These tried and tested

processing techniques remained essentially the same until the advent of the industrial revolution.

Chicharron is a Spanish name of pork rinds. Though the origin of the dish is lying in the

Andalusia state of Spain, but it has gained popularity throughout the world. Even the vegetarian

versions have also been introduced in Mexico by a snack company named ‘Barcle’ in 1980’s.

Since then many snack-food companies have launched the version of Chicharron.

As a twist to a famous pork chicharron, mushroom chicharron was created. Already as

early as the Roman times, fungi were not only popular in Europe, but they were also consumed

centuries ago in Middle and South America. They were regarded as special and mysterious and

were often used in age-old rituals.

The word mushroom is derived from the French word for fungi and moulds. One day,

around 1650, a melon grower near Paris discovered mushrooms growing on his growth fertiliser.

He decided to cultivate this new exotic delicacy commercially and to introduce it in exclusive

Parisian restaurants. It was at that time that the mushroom was given the nickname ‘Parisian

mushroom’.
 The project uses batch production, a method used when the size of the market for a

product is not clear, and where there is a range within a product line. A certain number of the

same goods will be produced to make up a batch or run. This method involves estimating the

consumer demand.

According to Regional Information Officer of the Depatment of Agriculture-6 James

Ogatis, “Mushroom industry is an intervention under the Palamayanan Model for lowland rice

farmers”. The industry uses only small area of land to start the business which is a good cost to

earn more profit. “The core concept of Palayamanan system is integration of all farm resources,

where rice hay or straws are used as primary medium in making mushroom substrates,” said

Elmer Cabusa, Regional Rice Action Program Officer and Mushroom Project Focal Person.

Meanwhile, the Department of Agriculture facilitated on-site trainings to different places for the

people to learn and use to engage in business.

As the production of mushroom rises, supplies boost making the primary input of

Chicharong Pamaypay cheaper and more profitable.

Savoury, healthy, unique and hearty chicharron can be successful in the market because

people today have more fussy characteristics that they preferred a nutritious yet suits their taste

preferences. Another is that the product targeted all ages. Promoting a healthy and convenient

way of eating by introducing the product to the public consumers would also benefit not just the

consumers with its health nutrition content but it also helps the Filipino mushroom cultivating

industry in the country.

2.3 DESCRIPTION OF THE PROJECT

 Inspired by the story of “Alice’s Adventures in Wonderland”, an 1865 novel written by

English mathematician Charles Lutwidge Dodgson under the pseudonym Lewis Carroll, the

proponents decided to use mushroom as a main ingredients. Part of the novel, Alice, the

protagonist girl, had a trial against the insects of Wonderland and by taking a bite from the

Mushroom of Life she defeats them. It is surprising that by eating the right side of the mushroom

made Alice shrink, and the left side made her grow. The proponents want to notify the public

that a fungal growth can be used to improve the well-being and lifestyle of an individual, they

want to inform the public that there is life even to the exotic plants like mushroom.

The proponents decided to use an oyster mushroom since it is accessible in the public

market and grows easily in a tropical country and was already cultivated in different places.

However, the product will be made from a cultivated mushroom that prohibits the use of

chemicals which can be a source of a bad effects to the consumers, such that it is called 100%

organically grown. By the interest of them about the business, they decided to test the product.

The experiment results to a fine outcome and offered a free sample to their associate. Some were

delighted in the product that made them demand for it, thus, Kabutehan Partnership was

established.

Oyster Mushroom Florida (i.e. Pleurotus spp.) is commonly called as ‘Dhengri’ in India

because of its oyster shell-like shape and the taste when cooked in soup has similarity taste like

oyster. In the Philippines, it is locally known as mushroom fan because of the petal and shape

(Kabuteng Pamaypay o Kabuteng Kulat).

Chicharong Pamaypay is certified and fits to all ages particularly health conscious eaters.

People currently often exposed to unhealthy foods because it serves their preferences. A simple

yet healthy food like mushroom innovated to one of the favourite snack of a Filipino, Chicharong
Pamaypay will be a source to prevent cancer, absence of bad cholesterol, rich in proteins, anti-

constipation, strengthen immune system, anti-inflammatory, no chemical residue, can regulate

sugar level, can reduce risk of heart ailments, 100% organically grown etc.

The product is a convenience product which is bought most frequently. A convenience

product is a consumer product or service that customers normally buy frequently, immediately

and without great comparison or buying effort. It is already supplied in different places by

different manufacturers; JA Lees Farms Mushroom at Indang, Cavite in Manila, Philippines;

Charlynne’s Mushroom Chicharon; served as a dish at Lamarang Steaks and Seafoods

Restaurant at Cabanatuan City, Nueva Ecija; Chichashroom of Satya Graha Cafe owned Kisig

Lopez and Angela Castelltort; Tempura Crispy Mushroom of Mom’s Haus of Mushroom at

Bulacan; Mushroom Tempura by Nagano’s Farm at San Leonardo, Nueva Ecija; and Mushroom

Chicharon of farmer’s cooperative at Lupao, Nueva Ecija. These suppliers produced their own

mushroom fruiting bags resulting to a lower cost. They also sell the bags to consumers which can

be used by the project to minimize their expenditures.

2.4 LOCATION OF THE PROJECT

Chicharong Pamaypay snack house is located in the town proper of Brgy. Poblacion Sur,

Rizal, Nueva Ecija, whereas it is located close to public market, municipal hall, and public places

in order to catch customer going to or from work, school and market. The proponents believe

that it is a good strategy to promote a healthy chicharon snack in the market.

2.5 SUMMARY OF FINDINGS AND CONCLUSIONS

a. Market Study
 The market projection of this business is based on the surveys conducted and other

related information gathered within the vicinity of Brgy. Poblacion Sur, Rizal, Nueva Ecija.

Projection of demand, supply, and sales for the first five years of operation is based on the

different factors like the population growth, market acceptability, and capacity to supply. This

study is feasible because our target population are willing and capable of availing our products

and services. We also consider factors like our competitors and prevailing prices of the suppliers

that will affect our prices. Based on our demand supply analysis we found out that we can supply

the available market based on our production capacity.

b. Management Study

Kabutehan Partnership is a partnership form of business ownership which will handle the

management of the business. There is a store manager who is over all in charged for the day-to-

day operation of the business. At the present, the business has the total of 5 employees and as the

business grows new employees will be hired for the minor business operation. Through an

organized organizational structure, there will be a smooth operation of the business and also

based on the technical knowhow of the managers, therefore, this business is feasible in this

aspect.

c. Technical Study

The product that we are going to offer is a substitute product of a famous Filipino snack

with high demand and nutritious for our customer. Our product is Chicharong Pamaypay.

Machineries and equipment were enumerated as well as other supplies with their corresponding

cost. The project is feasible based on the different aspect that we consider in operating this

business.

d. Financial Study
 The initial investment of Kabutehan Partnership is P 2,750,000.00 which came from the

partner’s contribution to establish this business. There are no other sources of capital aside from

our contribution. The return of asset will be .15 at first year and the payback period will be

exactly 2.83. Therefore, our financial study is feasible.

2.7 VISION AND MISSION

VISION

Our vision is to continuously improve our business in order to satisfy our customers,

enrich the lives of our employees, create new business opportunities, be number one in business

world and, as a result, change the world for the better.

MISSION

Kabutehan Partnership is committed in providing the safest, healthiest, highest-quality

mushroom products to our Customers and, in turn, the consumers.

We are devoted to providing our Employees with a safe workplace, benefits and

opportunities that support their needs.

We support our Community by hiring employees that are noble citizens, along with

supporting our local schools and community events, clubs, and associations.

The nature of mushroom cultivation is good for the Environment. We are dedicated to

conserving energy in our operations and using recyclable materials and methods whenever

possible.

Kabutehan partnership targets on providing excellent service to its customers. We, the

Kabutehan Partnership aims in venturing healthy mushroom food products to help lessen the
number of unhealthy foods these days. We make the production of the products accessible and

affordable to the market not only to gain profit likewise to contribute to the wellness of the

people.

We are also concern with the betterment of our employees. We advocate programs that

can help in the development and improvement of our employees for them to be efficient and

productive to their work place. It will also be a benefit for them in avoiding any accidents while

performing their respective jobs.

Another interest of this study is to support the group of people especially those who

cultured mushrooms. We want to promote their products to help their business and to establish a

good relationship with them. We use mushroom as our main ingredient as mushrooms doesn’t

require any chemicals that can harm the environment and also the people around them. Because

it’s all natural, we assure that the product is safe to consume by the eaters.

2.8 GOALS AND OBJECTIVES

1. The Kabutehan Partnership being number one when it comes to producing and

innovating products that contributes to the welfare of everyone. Likewise, being the most

preferred employer that can be trusted not only by the employees but similarly to others.

2. The products ventured by the Kabutehan Partnership being chosen by the consumers to

satisfy their needs and wants in terms of healthy and delicious food not only locally and

nationally but also internationally.

3. The Kabutehan Partnership having a profitable operation by having an efficient in work

and responsive in challenges of the business.

 Our main purpose as a business is giving and venturing best products that can be competitive

in the world market. We are concern with the welfare not only for our customers but also for our

employees.

Our target is for us to recognizable in the industry, for the Kabutehan Partnership as main

producer and trusted business in terms of food processing and food preparation of mushroom

products.

2.9 PROPOSED LOGO

Figure 1. Proposed Logo

The proponents design this logo for their Chicharong Pamaypay product. The red

mushroom, representing the main ingredient of the product, is wearing a white uniform with a

blue-lining in every curve to emphasize and show the proposed uniform of the partnership. Color

red can stimulate the appetite, often being used in restaurants because it increases the craving for

food. In Eastern cultures, red is a symbol of good luck. The four (4) buttons are all symbolic for

a phase or present concern where you may be at a cross roads making decisions to avoid risk and

to picked the best choice. The ‘KB’ in the left-side chest of the uniform stands for Kabutehan

Partnership. Green spoon and fork symbolizes the hunger of people from nutritious foods. The

mushroom also wears a salakot. Salakot is a traditional wide-brimmed hat from the Philippines

which commonly used as a symbol pertaining to Filipinos. The overall concept of the logo is a

smiling mushroom wearing the partnerships’ uniform with an embroid KB and a salakot which is

holding a spoon and fork. Color green and brown symbolize healthier and natural living and

both represent Earth’s nature.