Chapter I

INTRODUCTION
Soybean is a legume which is considered as a great substitute for animal protein. Most of
us do not know what is soybean. We often think of it as just another goods found in the market.
We dont know that soybean is a miracle crop. Eating soybean can reduce the risks of heart
ailments, prostate, colon, and breast cancers. Due to its health related benefits it gained a
worldwide popularity. Aside from its food function, soybeans are already utilized as oil, animal
feed and as an industrial raw material such as soap and biodiesel.
We only know a few about soybeans. We are not aware that it is socially and
economically useful. Due to its related benefits there has been an increase in the farming
community and consuming public. Most soybeans are processed for their oil and protein for the
animal feed industry. Local soybean production in the Philippines is very small that is why the
Department of Agriculture had crafted the soybean Development Road Map whose aim is to
reactivate and expand soybean production in the Philippines. The country is importing huge
volume of soybean seeds and soybean meal to supply the demands of food, industrial, poultry
and livestock industries. Soybeans can grow in any type of soil, easier and lesser to maintain
compare to other crops. You will spent 90-100 days in producing soybeans. Sultan Kudarat is a
good place to establish the soybean production for its large area of agri-business land and good
climate for growing soybeans.
As the production and utilization of soybeans are both increasing the need for adequate
soybean is also increasing. In pursuit of the growing demand for soybean production to address

the problem of soybean importation the proponents decided to use the organic way of soybean
production. The business could generate a good profit because it will supply soya beans to food
processors, oil millers and feed millers in Sultan Kudarat and in other neighboring provinces.

1.1 The Need

As a student of business related course, we have to learn how to assess the potential and
the likelihood success or failure of such business. This feasibility study is made to have an
analysis and evaluation on a proposed project that will help understand how to launch a
business in its commencement.

1.2 Objectives of the Study

General Objectives
Generally, the study aims to determine the feasibility and viability of Organic
Soybean Production in Barangay Kalandagan, Tacurong City, Sultan Kudarat.
Specific Objectives
Specifically, the study sought to achieve the following:
Management Aspect
To know the personnel needed in the industry and the salary that will
fit each of their position.

Marketing Aspect
To know the projected demand and supply of Organic Soybeans
Production and to determine the market gap and market share.

Technical Aspect
To identify the suitable area or location for the operation as
well as the machineries to be used and process to be executed

Financial Aspect
To determine the possible Return on Investment and how long it would
take to gain it.
To find out the solvency and liquidity ratios to asses stakeholders in
making investment decisions.
Socio-Economic Aspect
To determine the social benefits that can be derived from the
project.

1.3 Significance of the Study

This paper will serve as a guide for the investors particularly in the
agricultural sector and can determine how much the return they will earn in the
normal operation cycle of the business. As students they will learn and acquire
knowledge about this type of business on how to start it, and what are the needs in
establishing and operating the proposed business.
1.4 Scope and Delimitation
This study is limited to production of organic soybeans. The business will produce
organic soybeans from threshing, drying, cleaning, packaging and storage. The business will

then deliver it to the companies that uses soybeans as an ingredients to produce their
products.
1.5 Review of Related Literature
"Soya" (or "Soy" in the United States), is a legume, Glycine max (L.) Merrill.
Soy has been grown for three millennia in Asia and, more recently, has been
successfully cultivated around the world. Today, the worlds top producers of soy
are the United States, Brazil, Argentina, China and India.
About 85 percent of the worlds soybeans are processed, or "crushed,"
annually into soybean meal and oil. Approximately 98 percent of the soybean
meal that is crushed is further processed into animal feed with the balance used to
make soy flour and proteins. Of the oil fraction, 95 percent is consumed as edible
oil; the rest is used for industrial products such as fatty acids, soaps and biodiesel.
Soy is one of the few plants that provides a complete protein as it contains all
eight amino acids essential for human health.
(http://www.soyatech.com/soy_facts.htm)
Soybeans actually have hundreds of uses from industrial products like
engine oil or crayons to food products and animal feeds. Soybeans are naturally
rich in protein and oil and they have the highest natural source of dietary fiber
making them a very versatile crop in terms of how it is used. Typically when
soybeans are processed they are cleaned, cracked, and rolled into flakes. This
process separates the soybean oil and the soybean meal. The oil can be used in
food products like salad dressing or cooking oils or it can be used in countless
industrial products. The meal part of the soybean meal, which contains the

protein, can be used in further food products or it can be used to provide feed to
livestock. (http://www.wisoybean.org/news/soybean_facts.php)

1.6 Methodology
This study contains methods concerning on research design, respondents of the
study, data gathering procedure, data gathering instrument and statistical treatment.
Research Design
The study will use analytical type of research design, in determining the
feasibility and viability of putting up Organic Soybean in Barangay Kalandagan,
Tacurong, Sultan Kudarat. The proponents will use survey questionnaire in
gathering data, from the respondents, that will be analyze through simple
statistical measure.
Respondent of the Study
The respondents of the study will be the Soybean grower in Sultan Kudarat and
South Cotabato.
Data Gathering Procedure
The proponents will seek permission from the Campus Director to conduct the
study outside the school premises. Upon approval, a letter will also send to the
Department of Agriculture of Sultan Kudarat and South Cotabato requesting
permission to obtain information as to the list of growers in their respective areas.
When the letter is approve, the proponents will personally distribute the survey
questionnaire to the owner, for data collection and analysis.
Data Gathering Instrument

Through survey questionnaires, the proponents were able to gather data needed in
the study.
Statistical Treatment
After the questionnaire are answered by respondents, it will be analyze through
Statistical Straight-Line Method to determine the projections on demand and
supply of the proposed business.