A FEASIBILITY STUDY

J R M C
A I I E
G C L N
N E L T
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RATIONALE
 Milling is the process wherein the rice grain is transformed into a form
suitable for human consumption, therefore, has to be done with utmost care
to prevent greater portion of broken rice. It is a crucial step in post-
production of rice where the basic objective is to remove the husk, produce
edible rice grain that is sufficiently milled and free from impurities.

 When the rice arrives in the mill, the husk and the bran layers are removed,
after cleaning and packing, the rice is ready to be consume for daily purpose
or can be sold to the public. The processing of rice creates many valuable by-
products, rice husks can be used as bedding in poultry houses while rice-
stubble and broken rice are common ingredients in making food products, rice
bran is an additive for pet food. Other by-products are spring rolls wrapper
made from rice flour, rice stick noodles, rice brand oil, rice vinegar, rice glue
and rice paper. The rice mill also benefits the rural community in creating
jobs and supplying the local market with rice. Rice is one of the most
important food crops, many people depend on it for their daily meals, their
culture and livelihood are evolved around the growth and protection of this
staple food, for them rice is a symbol of love, rice equals life.
These study focuses on the establishment of rice milling to

provide high quality of rice in the community with the use of hi-

tech equipments to satisfy the needs of every customers.

  
THEORITICAL
In this rice theory of Thomas Talhelm, it tells us that
BACKGROUND
rice farming, Must be done with the help of other
“Rice is a really special
people from farming to harvesting and also in milling
kind of farming, it tends
to foster cultures that wherein the main objective is to remove the husk and
are more cooperative the bran layers from paddy rice to produce whole white
and interconnected
because farming and rice that are sufficiently milled, free of impurities and
milling rice requires contain a minimum number of broken rice. The milling
collaboration with your
yield and quality of rice is dependent on the quality of
neighbors.”
-Talhelm the paddy, the milling equipment used and the skill of

the mill operator.

RICE MILLING
SYSTEM
One step milling process
• where the husk and the bran are removed in one
pass
A two-step process
• where the husk and the bran are removed
separately.
A multistage process

• where rice passes through a number of different

operations and machines from paddy to white rice.
LEGAL BASIS
 “REPUBLIC ACT NO. 3018. An act limiting the right to
engage in the rice and corn industry to citizens of the
Philippines, and for other purposes.”

No person who is not a citizen of the Philippines, or association, partnership

or corporation, the capital or capital stock of which is not wholly owned by
citizens of the Philippines, shall directly or indirectly engage in the rice except
as provided in Section three of this Act. As used in this Act, the term rice shall
mean and include the culture, milling, warehousing, transporting, exportation,
importation, handling the distribution, either in wholesale or retail, the
provisions of Republic Act Numbered Eleven hundred and eighty to contrary
notwithstanding, or the acquisition for the purpose of trade of rice (husked or
unhusked) or corn and the by-products thereof:
 
Provided, that public utilities duly licensed and registered in accordance with
law may transport rice.
 RELATED
Rice remains an important agricultural commodity in the Philippines. It
STUDIES
accounts for one-fifth of agricultural gross value added, is a major
source of employment and income for rural people, and poor
households spend about 25% of their income on rice. Given its
importance in the national and political economy, rice has become one
of the main focuses of R&D, and an important topic for empirical
studies in the Philippines. The main motivation of this study is to
disentangle the effects of technology and managerial ability on the
productivity of rice farmers. In doing so, we employ a multi-stage
procedure in order to control for biases from observables and
Conceptual Background of the Study
 A survey is conducted and questionnaires were accomplished to know the preferences
of the proponents of the question typed survey.

 With personal interview of some existing business enterprise of the proposed project
directly to the owners to know more about this kind of business, to have a related and
guide towards the project. Thus, eager to have stability and availability towards
customers.

 The development and attraction of market industry, with its technical, management
and aids to highlight economic aspects and topics that helps to be accounted to be
accounted feasible the proposed project.
STATEMENT OF THE PROBLEM

It is estimated about 10 percent of paddy/rice is damaged and/or lost in

processing, storage and transport with the present methods and
machinery. Sixty to eighty percent head yield is obtained with 10-25
broken and admixture of bran and husk whereas with modern
techniques, 68-72 percent head rice with 5-7 percent broken and better
utilizable by-products. The estimated loss in terms of money due to ill
rice recovery and excess broken with present methods would run into
crore of rupees. Since paddy is the staple food of practically all paddy
growers and also it is seasonal with one harvest per year, there should
be some facility in storage which can be protected from various
Significance of the study
 Upon concluding the feasibility of the study and going on for its
implementation thereafter, this study is significant to the proponents or
capitalist who wants to engage in this kind of business. It will help them
to know more about Jagna Rice Milling Center and through this they can
also earn income, it would be beneficial to the following:

 To the proponent upon affirming the feasibility of the proposed Jagna

Rice Milling Center enterprise, the proponent would be directed with the
result of this study whenever he wishes to bring the proposed into reality.
● For the customers
 Having an additional milling center for the process of rice will help the customers to
provide more reliable and efficient way of milling with this so called Mobile Rice Mill
due to other far milling business. This establishment would be a great help for them as
carry out burden.

● To the hired workers

 This business needs workers, it can give income to those who will worked in the shop.
● For the Municipality of Jagna
 It is an addition to local government tax revenues, generate income and promotes the
town as a good site in engaging business enterprise.

● To the researchers
 It helps them to practice or apply their knowledge about the basic principles learned in
the business course. Also help the researchers to grow mature to test their attitude
towards another.
Scope and Limitations of the Study

This study seeks to hit upon the feasibility of establishing a Rice Milling

Center in Canjulao, Jagna, Bohol. To achieve this, a careful compilation of data

was conducted.

A distribution of questionnaires was being conducted into the

municipalities of Jagna, Duero and Garcia-Hernandez, a total of three hundred

(300) respondents.

This study has to be accomplished within the semester to formulate the

proposal inclusive of the correction by the examining tribunal.

 RESEARCH DESIGN

In this study, the researchers made used of the descriptive normative surveys
method employing the questionnaires and interview techniques and observation in
order to secure sufficient data and valuable information for investigation. The
data being gathered were carefully analyzed. The result of the survey will serve as
basis in establishing the feasibility of the proposed business.
 
 RESEARCH INSTRUMENT

A questionnaire was utilized for the purpose of gathering data to secure responses
to certain questionnaires necessary to the completion of the study. The researchers
opted to use the questionnaires as a tool since the responses to a questionnaire are
objectified and standardized which made the tabulation easy. But more importantly,
the respondents’ replies are of their own free will because there is no interviewer to
influence them. This is one way to avoid biases, particularly from interviewers. The
researchers also made used of the tables and charts for data presentation.
RESEARC
The proposed study will established at Canjulao, Jagna,
H
Bohol. And respondents currently resides at the towns of

ENVIRON Duero, Jagna and Garcia-Hernandez in the province of Bohol.

MENT Basically, these respondents were asked regarding the current

status of services and their personal views about product and

service satisfaction.
DATA In the gathering of various data, the researchers asked
GATHERIN first the approval of the respondents to conduct the survey.
Prior to the distribution of the research instrument, the
G
respondents were pre-informed as to what the survey was all
PROCEDU about. The social surveys and distribution of questionnaires
RES were done personally by the researchers to further explain
well certain items on the questionnaires to ascertain
efficiency.
 MARKETING ASPECT

Marketing aspect is considered the most important area for it describes market
situation, where the product can be identified through demand analysis. With this, the
proponents could foresee if the proposal could make a success in its marketplace.
Based on our study, there are lots of rice millers within the periphery of Jagna. Among
these, are ones that can be considered as major competitors; JTR Rice Mill, Jun-Jun Rice
Mill, Rufiño Rice Mill, Pauline Milling, Mary Jane Cagampang Rice Mill, and Nerves Milling
Services. In their way of servicing the customers, it doesn’t satisfy all of them because
there are still complaints from customers due to discomfort, low quality and slow process of
milling. That is why we establish “Jagna Rice Milling Center” with the extent of mobile rice
mill who can serve them a better services and quality.
 The existing establishments purely offer rice milling services only. As
observed, the onset of new technology and fast pacing of time, it is highly
needed to establish a new Rice Milling Center. Most of us really want to have an
easy way, more productive and gives a higher quality in terms of milling, and
also with our mobile rice mill we can offer services right to the door of every
customers in three towns.
 
The town of Jagna has a fast booming population. Moreover, the town need
rice milling services. The establishment of Jagna Milling Center in Jagna that
offers good services and credit will surely provide convenience and help partially
solve the inevitable cash shortage of consumers.
Market Analysis

The proposed projects aims for a positive and good response from our target
customers. The service introduces competitive and affordable pricing and
comfortable place as well. Since our project introduce competitive pricing,
market ability of milling rice at a lower price, could capture customers with
added features like milling near their house with this mobile rice mill.
 Marketing Strategy  Print ads. Having banners, tarpaulins and newspaper ads will increase
awareness of people about the business.

In every business establishment,  Press release. Advertise on radio Radio Natin and on TV SMCNI Cable for future
marketing serves as the source of life. plans.
The proposed business will join the  Information. We make sure our customers that come into our establishment
market as new competitor in Jagna to receive calling card or flyer for them to contact us for rice mill services and
offer rice milling services that can specially for mobile rice mill services.
render service right at the doorstep of
 Social Media. This generation social media have a great rule in our daily lives
potential customer. In order for the
most of us gives more time in social media. As our marketing strategy it will be
business to be known to every
advertised in Social Media. We will also posting updates through our Facebook
customers, we will employ different
Page.
promotional activities and marketing
 Giveaways and Discounts. Giveaways and Discounts will be given to our valued
tactics.
customers during December and anniversary as our sign of thanks of their
loyalty.

 Building a review base. Providing a “comment and suggestion box” in order to

evaluate service efficiency or rate of customer satisfaction.
 TECHNICAL ASPECTS

Technical aspect is one of the essentials of this study because

this factor responds to the technicalities and basic structure of the
proposed project. This includes the list of equipment’s, materials
structure plan, and sources of the supplies use in the proposed
project, utilities, facilities layout design and location of the
proposed business.
  Rice Milling refers to paid services for hulling paddy and polishing brown rice (un-
Business description
milled rice) to white rice (milled rice) at publicly run milling facilities since its
mission is to provide reliable and low-cost to its customers. This refers to all aspects
of post-harvest techniques utilizing operation, including the management of milling
facilities, operation, maintenance, the repair of milling machines and the marketing
and handling of white rice and by-products. It also include management such as the
collection of commission milling fees as well as the purchase and sales of paddy for
commercial milling.

Business offering Services available in the proposed establishment, Jagna Rice Milling Center with the
extent of this so called Mobile Rice Mill. This Mobile Rice Mill is an agricultural
machine used to automate the process of removing the outer husk of grains of rice,
it is a good relief to the customers since it is movable. This Mobile Rice Mill is a
great advantage to other competitors in terms of rendering good services.
Description of the The proposed business will be located at Canjulao, Jagna, Bohol. The land owned by
Location Roque Abrea. At Present, the area is 1,892 m2 but only 1,097.25 m2 will be
purchased as the location of the proposed project. The land is situated front of
fighter wine building.
The researchers proposed the business to be located in Canjulao, Jagna
because of its accessibility. Such location is deemed strategic and suitable for
business operation.

 Labor Requirements The researchers proposed the owner/proprietor of the business to render a
hands-on management for a mere effective operation. The Proprietor must
supervise the daily activities of the business. The proprietor should be inclined to
such business and should be multi-tasked during the operation. The proprietor is
likewise the manager one who will supervise the services render to the perspective
customers. However, since the proprietor alone cannot attend to everything that is
to be done, additional manpower is necessary for a smooth business operation.
 
The proposed project needed one bookkeeper to record the customer’s need.
The manager will be also the bookkeeper. Two laborers/drivers were needed
because, in case of unpredictable circumstances, the service will not be affected.
 
The above mentioned employees are also given a 13 th month pay equivalent to
the monthly earnings as mandated by law.
Employees Benefits

All the employees will receive benefits like health assurance, SSS

and Pag-ibig. They will also be given 13th month pay equivalent to

their monthly salary.

 ELECTRICITY

Electricity is the main energy source for rice mills.

Electricity is used to run motors, pumps, blowers,
conveyors, fans, lights, etc. Jagna is under the service
of the Bohol Electric Cooperative II (BOHECO II) a non-
stock, non-profit entity incorporated in the
Philippines to provide an electric light and power
services.
The proponent would incur an installation cost of
₱22,030.91. The proposed.
Wat
er
The project source of water will be the Jagna Waterworks System
(JWS). Water supply is flowing 24 hrs. The need of the water in
the proposed project is mainly for comfort room and car wash.
The estimated minimum monthly water consumption is 24m 3
which cost ₱168.00.
The water installation would incur ₱525.00. Totaling ₱693.00
including the first monthly water consumption.
 Fuel
Fuel is necessary for the mobile rice mill. The researchers
suggested to avail the services of Shell Gas Station located in Looc,
Jagna, Bohol since it is nearby in our establishment.

The fuel for the mobile including the machine would incur an
estimation of 19 gallons which is equivalent to 71.92 liters costing
₱45.26 per liter totaling to ₱3,255.10 per month.
 
Sanitation and
Waste
Management

The proposed business is required to maintain proper sanitation.

Water use in washing of delivery equipment will flow from the

garage to water drainage to maintain cleanliness and prevent

diseases. The proposed business site also has a comfort

room/toilet for employees and customer convenience. All waste

will be collected regularly by a garbage collector truck.

 
Fire Safety
Measure
To ensure safety from fire and as per requirement of the

municipality to any business establishment, the researchers

provide two unit of fire extinguisher that cost ₱10,995, which can

be used within 5years. Moreover, the building already has an exit

door being part of the blueprint as it was conducted.

General
Perspectiv
e