COFFEE COMMUNITY

BASED DEVELOPMENT
ENTERPRISE

Business Plan

New Leyte Agriculture Cooperative (NLAC)

New Leyte, Maco, Davao de Oro

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Title Coffee Community Based Development Enterprise

Location Barangay New Leyte, Maco, Davao de Oro

Lead Proponent New Leyte Agriculture Cooperative (NLAC)

Group

Contact Person / Cipriano Ellaga, Jr.

Designation Chairman

Address P-3, New Leyte, Maco, Davao de Oro

Contact Numbers 0912-700-3332

Business CDA Reg.No.: 9520-1401100031955

Registrations

Date Issued June 03, 2021

Cluster Members Provincial Coffee Association of Davao de Oro

Financing Small enterprise

Modality
Type of PG Start –up
undertaking
Project Project Components
Component Component 1: Construction of coffee processing building,
Construction of buying station w/mini bodega
Construction of Coffee driers
Component 2: Provision of coffee processing equipment
Component 3: Provision of Nursery supplies and equipment
Component 4: Trainings of POs

Products and / or Green Coffee beans and Ground Coffee

Services

Target Buyers Local Tourist, Apex Mining Corporation and Domestic and
International coffee buyers

Total Investment Php 7,750,000.00

Cost/Amount of
the Business Plan
Brief Description New Leyte Cocoa Producers Association now registered as New
of the Subproject Leyte Agriculture Cooperative is engaged in production both Coffee
and Cacao beans. The cooperative has been into nursery
production of coffee and cacao seedlings for four (4) years already
as well as buy/sell of fermented Cacao beans.
One of their objectives is to develop value-adding ventures of the
existing Coffee bean produce both from the cooperative members
and farmers in nearby barangays. The cooperative envisions the
establishment of Community-based enterprise which is aimed to
produce quality roasted beans for domestic and export use. The

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 proposed primary market will be the local tourist, local buyers and
Apex Mining Corporation.

Enterprise or General: To increase coffee production through the development of

Subproject vibrant economic enterprise in the community.
Objectives
Specific:

1. To increase the area planted to coffee;

2. To produce quality coffee planting materials;
3. To establish coffee processing facility;
4. To develop value adding ventures through processing of
Green Coffee Beans to Ground Coffee beans as well as
increased nursery production and
5. To capacitate the cooperative and coffee farmers both (men
and women) of the new approaches in coffee farming as well
the management of their agriculture business.

New ways of The intervention from the Department of Agriculture with the
doing marketing-technical assistance from Department of Trade and
things/innovations Industry, the Provincial Government of Davao de Oro will have an
impact on increasing the value of the Green Coffee Beans
produced by the cooperative. This will in turn provide avenue of the
small coffee farmers to sell their produce at a higher price. Further,
this will provide higher profits for the enterprise as they will embark
into value adding activities paving the way in increased income of
the farmer members in the community.

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 1. DESCRIPTION OF THE BUSINESS ENTERPRISE
i. Opportunity for the enterprise / PG and its product

Coffee is one the leading commodities cultivated by the farmers in the uplands of
Maco, Davao de Oro (otherwise referred to as Masara lines barangays) wherein
Barangay New Leyte is situated. The commodity has long been synonymous to
these areas even before small mining activity has become famous, coffee farming is
still a reliable economic option that gives additional income to farmers for decades
now. Robusta trees are endemic in the areas.

ii. Objectives of the proposed enterprise

Specially, the project seeks to achieve the following goals:

General: To increase coffee production through the development of vibrant economic

enterprise in the community.

Specific:

1. To increase the area planted to coffee;

2. To produce quality coffee planting materials;
3. To establish coffee processing facility;
4. To develop value adding ventures through processing of Green Coffee Beans to
Ground Coffee beans as well as increased nursery production and
5. To capacitate the cooperative and coffee farmers both (men and women) of the
new approaches in coffee farming

iii. Business overview

The New Leyte Cocoa Producers Farmer Association now registered as a

cooperative-New Leyte Agriculture Cooperative (NLAC) is engaged in marketing of
coffee and cacao beans as well as coffee seedlings production in partnership with Apex
Mining Corporation and other private individuals as its primary market.

With 76 hectares planted with Arabica Coffee by cooperative members in New

Leyte Maco, an estimated volume of production of 2.0 metric tons per hectare involving
76 farmer – beneficiaries. Further, the New Leyte Cocoa Producers FA is the biggest
cluster group in Maco upland barangays (Masara Lines) which helps small association
producers of both Coffee and Cacao and urged apply for membership with the
cooperative to avail of the coffee planting materials and high buying price of cacao wet
beans.

Barangays in Masara Lines barangays includes Elizalde, Tagbaros, Gubatan and

New Barili have an existing Coffee production of 400 hectares with an actual volume of
80 metric tons Green Coffee Beans production. Since 2016, New Leyte Cocoa
Producers Farmer Association now registered as New Leyte Agriculture Cooperative
(NLAC) has been doing business relative to their cacao and coffee commodity
cultivation.

The cooperative will continue selling high quality coffee planting materials to its
members and farmers. Further, since the cooperative have surplus production of Green
Coffee Beans, the cooperative decided to venture into coffee processing.

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 The potentiality of selling ground coffee as the main enterprise is high. According
to the report of the Tourism office of Davao de Oro, New Leyte, has become a favorite
destination of tourists. Activities like hiking and boating around Lake Leonard are some
of the favorite attraction. These tourists are coming from nearby cities of Davao, Mati
and Tagum and other provinces. Most of them find the place closer to nature because
of it cool weather while having a sip of hot coffee.

Through the assistance of the Department of Agriculture under the High Value
Program, the New Leyte Agriculture Cooperative (NLAC) being the established
proponent and identified farmers group envision to “Establish a Community Based
Coffee Enterprise”.

History of the Business and its Primary Strengths

The proponent cooperative, NLAC was organized five years ago then as a
farmers association. It is located at the banks of Lake Leonard and have been doing
business such as selling coffee planting materials and buy and sell of Cacao beans.
Recently, the association is registered with by CDA as cooperative last June 03, 2021
with registration number: 9520-1401100031955

iv. Products and Services offered / undertaken

NLAC is currently an industry player for Coffee which emphasizes on the
production and selling of coffee seedlings to its members. Lately, the
cooperative succeeded in realizing its commercial market partnership with
Apex Mining corporation as well as in the buy and selling of Cacao wet/ dry
beans and coffee seedlings.

In 2016, New Leyte Cocoa Producers Farmer Association/NLAC was the

project beneficiaries of ACDI VOCA, a United States Department of Agriculture
(USDA) funded non-government organizations which focuses on the
community development with Cacao and Coffee as major enterprise. The
farmer association/cooperative was given driers, nurseries and mini training
halls. The said facility gave a significant boost in the economic enterprise of its
members and the community as a whole.

v. Location Map

The location of the proposed Community Based Coffee Enterprise will be

situated at P-3, New Leyte, Maco Davao de Oro. The area can be reached
through Mawab, Davao de Oro Provincial road approximately 3 hrs and 57
minutes from Davao City. About 61.9 kilometers from Tagum City and 63.2
kms from Nabunturan via Mawab, Davao de Oro road.
The area is situated to about 800 to 1100 meters above sea level and was
found to be best area for coffee production.

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 vi. Flood Hazard
Natural hazards and calamities include flood, landslide, drought and
typhoons has brought damages to the province in the past. In Maco, Barangay
Panibasan, Kinuban, Calabcab, Elizalde and Malamodao are highly
susceptible to flooding while landslides prone areas are mostly in Barangay
Panoraon, Maco and some part in Maragusan. New Leyte, Mainit and Teresa,
also of Maco are moderately susceptible to floods. Coffee as deep rooted
crops is best recommended to be planted in the hilly and rolling areas to
prevent and minimize soil erosion.

1. MARKET ANALYSIS
1.1. Market Characteristics

1.1.1. Production Trends

Philippines though a coffee producing country registered a decline

in production. The drop of Coffee production is due to crop shifting,
unproductive trees, poor farm practices, limited access to certified planting
materials and limited access to credit. Close to 4 Million Coffee trees were
lost from 2013 – 2017 which is equivalent to 8,277 metric tons of green
coffee beans. Decline in production is equivalent to 21% for the four-year
period. For the past twenty (20) years, coffee production has declined by
fifty-one (51%). The largest percentage decline was observed coming
from regions of MIMAROPA (Mindoro, Marinduque, Romblon, Palawan)
and CALABARZON (Cavite, Laguna, Batangas, Rizal and Quezon)
reporting over 90% decline (ACDI VOCA, 2020).

Dried coffee berries production in the Philippines marks its highest

production in year 1995 having a volume of 125,658.90 metric tons since
then a downfall trend in coffee production was observed from year 1998 to
2017, which recorded its lowest production of about 62,077.95 metric tons.
as shown in Figure 1. Philippines dried coffee bean production.

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 Figure 1. Philippines dried coffee bean production.

Currently, Philippines is the 4th largest coffee consumers in the world and
it imports 93% of its coffee requirement. In 2018, the country recorded an
annual import of coffee beans of 6,600 bags amounting to US$91.5 million
(ACDI VOCA, 2020). Philippines grows all four (4) coffee varieties
namely; Robusta, Arabica, Liberica and Excelsa. Based on 2018 PSA
Data, the Philippines produced a total of 60,312.76 metric tons of dried
coffee beans. Figure 2. shows the percent (%) shares per varieties and
volume.

PHILIPPINES : Coffee
Volume of Production (in metric tons) as of 2018
ARABICA 13,706.19
ROBUSTA 42,070.88
LIBERICA 496.37
EXELSA 4,039.32

Figure 2. Percent (%) shares per varieties and volume.

In 2018, the Philippines produce a total of 42,071metric tons of robusta

Green Coffee Beans (GCB). A total of 79.08% of robusta coffee produced
in the Philippines is from Mindanao and 27.23% is from SOCCSKARGEN.
Sultan Kudarat is the number 1 coffee growing province in terms of
production volume with a total of 22.63%. Table 2. show off the Robusta
Production in volume per Region.

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Table 2. Robusta Production in volume per Region.

Region Volume (mt)

Region XII (SOCCSKSARGEN) 11,454.99
Region XI (Davao Region) 7,357.86
Region X (Northern Mindanao) 5,240.88
Cordillera Administrative Region (CAR) 1,635.31
Region IV-A (CALABARZON) 1,593.47
PSAE Report, 2018.

2.1.1.2. Global and Domestic Demand

The coffee industry is growing significantly at large compound with

annual growth rate of 5.5%. Globally, demand for coffee slated to rise to a
total of 175.8 million bags by 2020 (PhilCafe, 2020). According to the
European and North America coffee survey in 2017, Finland is the top
coffee drinking nation in the world with 10.35kgs cups per day and
followed by Netherlands 9.58kgs cups per day as shown in Figure 3.

Figure 3. World coffee consumption per capita.

In Philippines, reports says that eight (8) out of ten (10) Filipinos drink an
average of 2.5 cups per day. However, consumption has gone up during
pandemic of Covid 19 gone up to 2.77 cups per day, roughly a third cup
extra a day representing an over 13% increase illustrated in Figure 3. Year
over years, imported coffee purchased by Filipinos spiked by 322.9% from
58.9 million US dollar in 2017 (https://sprudge.com).

Figure 4. Coffee consumption during the pandemic.

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2. Operational Plan

Ownership and Management

The enterprise is owned by the members of New Leyte Agriculture Cooperative

(NLAC). The enterprise will be managed by competent personnel whose experience
in the trade has long been tested even in their infancy stage as an association.

Task and Responsibility of the Cooperator and its Members

Farmer – cooperative member/ beneficiaries – will ensure that they will abide with the
agreement entered into with partners, buyers, ensure quality of fresh Coffee cherries
and well sell their produce to NLAC.

NLAC– shall take charge of the buying of fresh coffee cherries and process into
ground coffee. The ground beans will be delivered through Apex Office, nearby
coffee shops and other national agencies and to local tourist.

The Management structure as shown below is designed to ensure that the coffee
enterprise will follow proper protocols of the business. The cooperative and its
members having a common bond of interest through the years has proven
themselves steadfast and intact despite dire straits and challenges in the past. The
management team is expected to coordinate closely with their production and
marketing partners to ensure sound business and the objectives of creating economic
wealth using the resources that abounds specifically coffee and cacao.

ORGANIZATIONAL STRUCTURE

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 TECHNICAL ASPECT

Processing of Coffee Cherries into beans involves the harvesting, wet (pulper)/ dry
process, drying , cleaning, hulling, size grading, sorting and storage as shown below.

Harvesting

The berries are ready for picking 8 to 9 months after flowering has taken place. In only
two weeks, all the plantations in a region can be covered in cherries and it is then essential to
pick only the ripe berries, which are shiny, red and firm to the touch. The unripe green cherries,
mixed with the others, will make the coffee more bitter; those which have turned garnet-red,
violet or black are over-ripe and give the final product an unpleasant, acrid taste.
The best quality is obtained by picking the ripe berries one by one by hand.

Processing of the Cherry into parchment coffee

Once the cherries are harvested, the beans have to be extracted by using either the dry
or the wet method. The wet method is more expensive than the dry method, but the coffee it
produces has better quality properties.

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 Dry Method

The dry method (also called the natural method) is the oldest, simplest and requires little
machinery. The method involves drying the whole cherry. There are variations on how the
process may be carried out, depending on the size of the plantation, the facilities available and
the final quality desired. The three basic steps, cleaning, drying and hulling, are described
below.

Initially, the harvested cherries are usually sorted and cleaned, to separate the unripe,
overripe and damaged cherries and to remove dirt, soil, twigs and leaves. This can be done by
winnowing, which is commonly done by hand, using a large sieve. Any unwanted cherries or
other material not winnowed away can be picked out from the top of the sieve. The ripe cherries
can also be separated by flotation in washing channels close to the drying areas. The coffee
cherries are then spread out in the sun, either on large concrete or brick patios or on matting
raised to waist height wire mesh tables to dry. As the cherries dry, they are raked or turned by
hand to ensure even drying. It may take up to 4 weeks before the cherries are dried to the
optimum 11% moisture content, depending on the weather conditions. On larger plantations,
machine drying is sometimes used to speed up the process after the coffee has been pre-dried
in the sun for a few days.

The drying operation is the most important stage of the process, since it affects the final
quality of the green coffee. A coffee that has been overdried will become brittle and produce too
many broken beans during hulling (broken beans are considered defective beans). Coffee that
has not been dried sufficiently will be too moist and prone to rapid deterioration caused by the
attack of fungi and bacteria.

The dried cherries are stored in bulk in special silos or in bags until they are sent to the
mill where hulling, sorting, grading and bagging take place. All the outer layers of the dried
cherry are removed in one step by the hulling machine.

The dry method is used for about 95% of the Arabica coffee produced in Brazil, most of
the coffees produced in Ethiopia, Haiti and Paraguay, as well as for some Arabicas produced in
India and Ecuador. Almost all Robustas are processed by this method. It is not practical in very
rainy regions, where the humidity of the atmosphere is too high or where it rains frequently
during harvesting.

Wet Method

The wet method requires the use of specific equipment and substantial quantities of
water. When properly done, the qualities of the coffee beans are better preserved, producing a
green coffee which is homogeneous and has few defective beans. Hence, the coffee produced
by this method is usually regarded as being of better quality and commands higher prices.

Even after careful harvesting, a certain number of partially dried and unripe cherries, as
well as some stones and dirt, will be present among the ripe cherries. As in the dry method,
preliminary sorting and cleaning of the cherries is usually necessary and should be done as
soon as possible after harvesting. This operation can be done by washing the cherries in tanks
filled with flowing water. Screens may also be used to improve the separation between the ripe
and unripe, large and small, cherries.

After sorting and cleaning, the pulp is removed from the cherry. This operation is the key
difference between the dry and the wet methods, since in the wet method the pulp of the fruit is
separated from the beans before the drying stage. The pulping is done by a machine which
squeezes the cherries between fixed and moving surfaces. The flesh and the skin of the fruit are
left on one side and the beans, enclosed in their mucilaginous parchment covering, on the
other. The clearance between the surfaces is adjusted to avoid damage to the beans. The
pulping operation should also be done as soon as possible after harvesting to avoid any
deterioration of the fruit which might affect the quality of the beans.

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 The pulped beans go on to vibrating screens which separate them from any unpulped or
imperfectly pulped cherries, as well as from any large pieces of pulp that might have passed
through with them. From the screens, the separated pulped beans then pass through water-
washing channels where a further flotation separation takes place before they are sent to the
next stage.

Because the pulping is done by mechanical means it normally leaves some residual
flesh as well as the sticky mucilage adhering to the parchment surrounding the beans. This has
to be completely removed to avoid contamination of the coffee beans by products resulting from
the degradation of the mucilage. The newly pulped beans are placed in large fermentation tanks
in which the mucilage is broken down by natural enzymes and can easily be washed away.
Unless the fermentation is carefully monitored, the coffee can acquire undesirable, sour
flavours. For most coffees mucilage removal takes between 24 and 36 hours, depending on the
temperature, thickness of the mucilage layer and concentration of the enzymes. The end of the
fermentation is assessed by feel, as the parchment surrounding the beans loses its slimy
texture and acquires a rougher "pebbly" feel.

When the fermentation is complete, the coffee is thoroughly washed with clean water in
tanks or in special washing machines. The wet parchment coffee at this stage consists of
approximately 57% moisture. To reduce the moisture to an optimum 11% the parchment coffee
is dried either in the sun, in a mechanical dryer, or by a combination of the two. The sun drying
is done on extensive flat concrete or brick areas, known as patios, or on tables made of fine-
mesh wire netting. The beans are laid out in a layer of 2 to 10 cm, and turned frequently to
ensure even drying. Sun drying should take from 8 to 10 days, depending upon ambient
temperature and humidity. Coffee dries more quickly if raised on tables because of the upward
draught of warm air. The use of hot-air drying machines becomes necessary to speed up the
process in large plantations where, at the peak of the harvesting period, there might be much
more coffee than can be effectively dried on the terraces. However, the process must be
carefully controlled to achieve satisfactory and economical drying without any damage to
quality.

After drying, the wet-processed coffee, or parchment coffee as it is commonly known, is

stored and remains in this form until shortly before hulling.

The final stages of preparation of the coffee, known as "curing", usually take place at a
special plant just before the coffee is sold for export. The coffee is hulled, to remove the
parchment, then passes through a number of cleaning, screening, sorting and grading
operations which are common to both wet- and dry-processed coffee. Electronic sorting
machines may be used to remove defective beans, including those known as "stinkers" (see
aroma defects, 3.04), which cannot be distinguished by eye.

The wet method is generally used for all the Arabica coffees, with the exception of those
produced in Brazil and the Arabica-producing countries mentioned above as users of the dry
method. It is rarely used for Robustas. Figure 2, illustrates all the steps applied in both methods
of processing.

Roasting , Grinding & Packaging

Green Coffee beans will be roasted using a coffee roaster and be grinded with the use of
coffee grinder to produce coffee for brewing. This will be later packed and labeled as specialty
coffee.

Further, technical assistance will be provided by the Department of Agriculture (DA)

concerning technical concerns of the operation and of course, the packaging and the labeling
which be done in close coordination with the Department of Trade and Industry (DTI).

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 MARKET ASPECT
1. Product

The proposed business of the cooperative will be the procurement of the green coffee
beans from cooperative members and other farmers within the vicinity to be processed into
ground coffee for outside prospective buyers and marketing partners. The required raw
materials are fresh coffee cherries.

2. Target Market

Initially, the cooperative is planning to supply green coffee beans and ground coffee and
other coffee products locally for the first year of production and for export in the coming years.
However, the cooperative will need the assistance of the Department of Agriculture XI- AMAD
and the Department of Trade Industry for the market linkage. The coop’s main product, green
coffee beans and specialty coffee will be sold to both local and international prospective buyers.
The plan are as follows:

a. ) Local Market – Green Coffee Beans & Ground coffee for year 2021
b. ) Export market – Green Coffee Beans starting 2023

Expected Output:

Project Component 1:

Establishment of Coffee Processing Facility - 1 unit

Establishment of buying station w/mini bodega- 1 unit
Establishment of Coffee dryer 500 kilograms capacity 2 unit/s

Project Component 2:

Provision of Coffee processing equipment’s

 Coffee roasting machine 1 unit

 Coffee Dehuller 1 unit
 Coffee Depulper 1 unit
 Coffee Grinder 1 unit
 Coffee bean sorter 1 unit
 Sealing Machine 1 unit
 Sorting/Production Table 2 unit/s
 Floatation Tank (stainless) 3 unit/s
 Moisture Meter 1 unit
 Espresso Machine 1 unit
 Weighing scale 1 unit

Project Component 3: Provision of Nursery supplies and equipment

Poly bags (5 x8x0.003)/100pcs 100,000 pc/s

Rice hull 500 sacks
Organic fertilizer 200 bag/s
Coco coir dust 500 bag/s
Fertilizer (16-16-16) 5 bag/s
Plastic Mulch 8 rolls
Plastic Knapsack sprayer 2 pc/s
Rechargeable knapsack 1 pc
sprayer
Nursery Net 10 roll/s
Coffee Seeds variety (Catimor, 100 kl/s
typical, Red bourbon and
Robusta)

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 Nylon (PAMO) 20 roll/s
Garden Soil 10 cu.m
Umbrella (big) 5 pc/s
Rubber Boots 10 pc/s
Raincoat 10 pc/s
Wheel barrow 5 pc/s
Compressor with power 1 pc
sprayer
Shovel 5 pc/s
Hoe 5 pc/s
Rake 5 pc/s
Scythe 3 pc/s
Grasshook 5 pc/s
Plastic Drum food grade 2 pc/s
Garden hose ½ (100 m) 2 unit/s
Fauset 10 pc/s
Gate valve 10 pc/s
Nylon (big) 10 kl/s
Black twine 15 kl/s
Tie wire #16 10 kl/s
Fungicide 5 kl/s
Insecticide 5 liter/s
Herbicide 5 gallons
Foliar Fertilizer 10 liter/s
Jute Sack 100 pc/s
UV Cellophane 2 roll/s

Project Component 4: Capacity building of POs

Coffee Production training, 5 day/s @ 5 100 pax

batches
Coffee Integrated Pest and Disease 100 pax
management and Control, 3 days @ 3
batches
Training of Trainors on Roasting / Cupping, 5 5 pax
days@ 1 batch

Processing/Packaging /labeling trainings, 3 15 pax

batches @ 1 batch

Entrepreneurship Training, 3 days @ 1 batch 25 pax

Good Manufacturing Practices, 3 days @ 1 25 pax

batch
Product Accreditation to FDA, 2 days @ 1 25 pax
batch
Pre Membership Education Seminar, 1 day @ 100 pax
4 batches
Financial Management for Cooperative, 2 25 pax
days@ 1 day
Bookkeeping Seminar, 2 days@ 1 day 25 pax

Fundamentals of Cooperative, 2 days@ 1 day 25 pax

Governance and Management Training, 2 25 pax

days@ 1 day
Values Formation, 1 day @ 1 batch 25 pax

Strategic Planning, , 2 days@ 1 day 25 pax

Internal Audit, , 2 days@ 1 day 25 pax

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Project Proposal Preparation, , 2 days@ 1 25 pax
day
Bench marking and exposure trip, 3 days @ 1 25 pax
batch
a. Established coffee plantation
b. Coffee shop in Davao City

Speakers honorarium

Training supplies and materials

PROCESS FLOW
Buying of Coffee Cherries

Washing and Floatation

De pulping

Hulling

Drying

Sorting and Grading

Roasting

Winnowing

Grinding

Packaging and Labeling

Marketing and Distribution

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Budgetary Requirements

The following were the cost breakdown for the different facilities needed:

PARTICULARS Quantity Unit price Total Amount

Project Component 1: 2,350,000.00
Construction of Coffee 1 unit 2,000,000.00 1,500,000.00
processing Facility
Construction of buying station 1 unit 350,000.00 350,000.00
with mini warehouse
Construction of All-weather 2 unit/s 500,000.00 1,000,000.00
Coffee dryer
Project Component 2: 4,000,000.00
Coffee Roasting Machine 1 unit 1,250,000.00 1,250,000.00
Coffee dehuller 1 unit 250,000.00 250,000.00
Coffee depulper 1 unit 180,000.00 180,000.00
Coffee grinder heavy duty 1 unit 300,000.00 300,000.00
Coffee bean sorter 1 unit 200,000.00 200,000.00
Coffee packaging machine 1 set 1,200,000.00 1,200,000.00
Sorting Table 2 unit/s 40,000.00 80,000.00
Floatation Tank 3 unit/s 34,000.00 102,000.00
Moisture Meter 1 unit 100,000.00 100,000.00
Espresso Machine 1 unit 250,000.00 250,000.00
Weighing Scale (150kgs) 1 unit 88,000.00 88,000.00
Project Component 3: 650,000.00
Provision of Nursery
Supplies and materials
Poly bags (5 x8x0.003)/100pcs 100,000 pc/s 220.00 220,000.00
Rice hull 500 sacks 20.00 10,000.00
Organic fertilizer 200 bag/s 350.00 70,000.00
Coco coir dust 500 bag/s 100.00 50,000.00
Fertilizer (16-16-16) 5 bag/s 1,800.00 9,000.00
Plastic Mulch 8 rolls 1,500.00 12,000.00
Plastic Knapsack sprayer 2 pc/s 4,500.00 9,000.00
Rechargeable knapsack 1 pc 6,000.00 6,000.00
sprayer
Nursery Net 10 roll/s 5,500.00 55,000.00
Coffee Seeds variety (Catimor, 100 kl/s 450.00 45,000.00
typical, Red bourbon and
Robusta)
Nylon (PAMO) 20 roll/s 80.00 1,600.00
Garden Soil 10 cu.m 800.00 8,000.00
Umbrella (big) 5 pc/s 600.00 3,000.00
Rubber Boots 10 pc/s 350.00 3,500.00
Raincoat 10 pc/s 500.00 5,000.00
Wheel barrow 5 pc/s 2,800.00 14,000.00
Compressor with power 1 pc 25,000.00 25,000.00
sprayer
Shovel 5 pc/s 600.00 3,000.00
Hoe 5 pc/s 550.00 2,750.00
Rake 5 pc/s 500.00 2,500.00
Scythe 3 pc/s 300.00 900.00
Grasshook 5 pc/s 150.00 750.00
Plastic Drum food grade 2 pc/s 2,500.00 5,000.00
Garden hose ½ (100 m) 2 unit/s 3,500.00 7,000.00
Fauset 10 pc/s 250.00 2,500.00
Gate valve 10 pc/s 450.00 4,500.00
Nylon (big) 10 kl/s 400.00 4,000.00
Black twine 15 kl/s 250.00 3,750.00

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Tie wire #16 10 kl/s 150.00 1,500.00
Jute Sack 50 pc/s 100.00 5,000.00
Fungicide 5 kl/s 550.00 2,750.00
Insecticide 5 liter/s 700.00 3,500.00
Herbicide 5 gallons 1500.00 7,500.00
Foliar Fertilizer 10 liter/s 400.00 4,000.00
UV Cellophane 2 rolls 30,375 60,750.00
Project Component 4: 750,000.00
Capacity building of POs
Coffee Production training, 5 100 pax 350.00 175,000.00
day/s @ 5 batches
Coffee Integrated Pest and 100 pax 350.00 105,000.00
Disease management and
Control, 3 days @ 3 batches
Training of Trainors on 5 pax 350.00 8,750.00
Roasting / Cupping, 5 days@
1 batch
Processing/Packaging 15 pax 350.00 15,750.00
/labeling trainings, 3 batches
@ 1 batch
Entrepreneurship Training, 3 25 pax 350.00 26,250.00
days @ 1 batch
Good Manufacturing Practices, 25 pax 350.00 26,250.00
3 days @ 1 batch
Product Accreditation to FDA, 25 pax 350.00 17,500.00
2 days @ 1 batch
Pre Membership Education 100 pax 350.00 12,000.00
Seminar, 1 day @ 4 batches
Financial Management for 25 pax 350.00 6,000.00
Cooperative, 2 days@ 1 day
Bookkeeping Seminar, 2 25 pax 350.00 6,000.00
days@ 1 day
Fundamentals of Cooperative, 25 pax 350.00 6,000.00
2 days@ 1 day
Governance and Management 25 pax 350.00 6,000.00
Training, 2 days@ 1 day
Values Formation, 1 day @ 1 25 pax 350.00 3,000.00
batch
Strategic Planning, , 2 days@ 25 pax 350.00 6,000.00
1 day
Internal Audit, , 2 days@ 1 day 25 pax 350.00 6,000.00
Project Proposal Preparation, , 25 pax 350.00 6,000.00
2 days@ 1 day
Bench marking and exposure 25 pax 350.00 30,000.00
trip to Coffee shop in Davao
City, 3 days @ 1 batch
Speakers honorarium 3000/day 75,000.00
Training supplies and 213,500.00
materials
Grand Total 7,750,000.00

ASSUMPTIONS

I. Production
a. Basic Assumption
1. 2,000 kgs. Coffee cherries
2. Recovery from cherry to dried 50%
3. 2000 kgs. X 50% = 1000 kg GCB
4. Percent recovery from dried GCB to Roasted 70% = 700 kg
5. Percent losses from Roasted to Ground 5% =665 kg

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 6. Production distribution
7. Current price of Coffee production - GCB robusta = P80/kg
Ground Coffee robusta = P250/kg

8. Price of coffee cherries - Arabica = P120/kg

Robusta = P30/kg

9. Price of GCB Arabica = P350/kg

Robusta = P180/kg

10. Price of Roasted Arabica = P400/kg

Robusta = P250/kg

11. Price of Grind Arabica = P550/kgs

Robusta = P350/kg

II. Projected Statement of Financial Condition

Monthly Annual

Sales: 10% GCB Grade III 100 X 180 18,000.00 90,000.00

Ground Coffee 665 X 350 232,750.00 1,163,750.00
Total Sales 250,750.00 1,253,750.00

Expenses;

Less: Coffee Cherries 2,000 kgs. X php 30.00 60,000.00 300,000.00

Less: Operating cost

Marketing /sales supervisor 2 x 550 x 20 days 22,000.00 264,000.00

Sales Distributor 2 x 400 x 20 days 16,000.00 192,000.00
Labor 2 X P350/day X 20 days 14,000.00 168,000.00
Pakyaw labor sorting/grading (P3.00/kgs dried GCB)3,000.00 15,000.00
Packaging materials 5,000.00 30,000.00
Marketing (Transportation) 10,000.00 50,000.00
Light & Water utilities 2,000.00 20,000.00
Miscellaneous expense 5,000.00 20,000.00
Total cost 137,000.00 1,059,000.00

% ROI (monthly) = Net Income

Expenses

%ROI = 250,750.00
137,000.00

%ROI = 183.0%

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New Leyte Agriculture Cooperative
Community Based Coffee Enterprise
Php 7,750,000.00
Source of Funds: Department of Agriculture RFO XI

Prepared by:

JORGE R. OMICTIN
Chairman, New Leyte Agriculture Cooperative

Reviewed by:

MERRIEL A. BERNARDO
Senior Agriculturist, DA RFO-XI

Noted by:

MINDA R. AGARANO, Ph.D

Provincial Agriculturist
Davao de Oro

Recommending Approval

MARIE ANN CONSTATIÑO

FOD Chief, DA RFO - XI

Approved:

RICARDO M. OÑATE, RPAE

Regional Director, DA-RFO XI

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