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CHAPTER 1

INTRODUCTION

A. Rationale

Rice (Oryza sativa) is the most important staple food in our country. It serve as

staple food and a source of in income. However, farmers encountered problems of low

yield and income that consequently affect their standard of living. Rice shortage is

likewise a problem. Therefore are more efficient at harvesting

The Province of Occidental Mindoro is one the Philippines rice producing

province. The total effective crop area is 73,986 hectares of which 67.17% is irrigated

and the other 32.12% is non-irrigated .The total production for the year 2008 was

6,585,148 canvas and irrigated rained areas respectively (Occidental Mindoro, Office of

the Provincial Agriculturist,2010). Rice is a big business in the province. Majority of its

population defends in rice industry.

B. Brief description of the micro project

The proponent was 0.5 hectare rice field situated in Sitio Roadside Sto Nino,

Rizal, Occidental Mindoro. The proponent funded the project using the borrowed capital

amounting Php. 10,000.00. The capital will be loaned from student loan fund (SMLF) of

the college with 6% interest per annum.

C. Objectives

The microproject was conducted with the following.

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1. Generate net income of at least PhP. 10,000.00 from 0.5 hectare land within one

cropping.

2. To apply knowledge and skills in rice production learned during student instructional

unit (SIU).

3. Develop decision making capability through actual practice.

4. Be able to keep accurate and reliable farm records purposely to evaluate the financial

performance of the microproject and to prepare financial statement.

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CHAPTER II

MARKETING ASPECT

A. Demand and supply analysis (Actual)

The Mindoro provinces have been considered as the “rice granary” of the Region

IV consistently contributing more than 40 percent to the region’s total palay harvest

(NSCB, 2003). The people of Occidental Mindoro are mostly engaged in agriculture to

earn a living. The province has vast agricultural area devoted to the production of food.

Rice production is the leading activity and source of seasonal employment in the

province, participated in by almost 80 percent of the population, including children.

B. Marketing strategies

1. Product

The product was used NSIC RC134. It will be marketed as a clean and dried with

50 kilogram per sack.

2. Price

Product was be sold at PhP 17.50 per kilograms.

3. Place

The product was be sold to the National Food Authority (NFA) or to the

commercial palay traders.

4. Promotion

The product was be given sample to the National Food Authority (NFA) or to the

commercial palay traders in order to determine the moisture content and quality.

5. Payment Scheme

The product produce in this project will paid through cash basis.

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CHAPTER III

TECHNICAL ASPECT

A. Product technology (Actual)

1. Product description

The seed that was be used is NSIC RC-82; a variety is highly resistant to pest and

diseases. It is also adaptable to wet or dry season and matures within 4 to 4 ½ months

from seed germination. Its grain is plenty and milling recovery is very good. It was

develop of Bureau of Plant Industry (BPI). It will be bought from Department of

Agriculture (DA) at San Jose Occidental Mindoro.

2. Production process

a. Seed germination

Place seed in half-filled sack, soak seed in running water and incubate in moist

warm place for 36-48 hours before broadcasting. Keep the seed moist by watering in

the morning and afternoon or water it as need arise.

b. Seedbed preparation

1. Land preparation

It was be done by plowing the field once. Harrowing thrice until the soil is

puddle, and levels it using a carabao drawn and hand tractor.

2. Caring of seedling

Drainage the seedbed as need the arises and application insecticide will be done,

whenever there is an occurrence of pest. Application of urea fertilizer will be done

one week before transplanting.

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c. Land preparation

It was be done by plowing once; cleaning the field by eliminating toppled weeds

from dikes and harrowing lengthwise and crosswise until it become suitable for

planting.

d. pulling of seedlings

Drain the seedbed to soften the soil. Pull seedlings carefully to avoid root damage

and bundled it into convenient sizes for ease in transplanting.

e. Transplanting

It was be done 21 days after seed sowing in straight-planting by using planting

guide with a distance of 20cm X 15cm.

f. Irrigation and drainage

Irrigating was be done as need arises, to support the water requirement of the

crop. Draining the field will be done two weeks before harvesting.

g. fertilizer application

Table 1 represents the schedule of fertilizer application applied in the microproject.


Date Fertilizer type Method use

june 29,2015 Organic fertilizer Basal application


July 5,2015 Urea (46-0-0) Side dress for seedlings
July 21,2015 Urea (46-0-0) and complete (14-14-14) Side dress
August 12,2015 Foliar fertilizer spray
August 19,2015 Urea (46-0-0) and complete (14-14-14) Top dress

h. Weeds and insect, pest control

Spot weeding, control pest and diseases will be done anytime where this is an

occurrence of pest and diseases.

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i. Harvesting

Harvesting will be done when the grain is at least 85% mature and the panicle

turn to yellowish in color.

j. Drying, milling and packaging

It will be done after harvesting with a moisture content of approximately 14% at

the solar dryer and package in the sack.

k. Marketing

The product was sold the National Food Authority (NFA) or other commercial

traders.

l. Project size

The project is rice production with an area of 0.5 hectares.

m. farm location

The project was located at Sitio Roadside Sto Nino, Rizal , Occidental Mindoro.

n. Production schedule

The project was start from July 2015 and will be finish to November.

o. Waste disposal

The waste was segregated into biodegradable and non-biodegradable. All non-

biodegradable like plastics, bottles and cartoon will be recycled, and all

biodegradable was placed in the compost pit and will be convert into organic fertilizer

for future use.

p. Expected output/yield

The proponent was expected to produce 50cavans of rice from 5,000 square

meters.

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3. Facilities/materials/equipments

Table 2.Facilities (Actual)

Table 2 presents the facilities use in the implementation of the microproject.


Item Description Quantity Source Acquisition
Land Plane land 0.5 hectares Rizal Rent
Water Clean 1 unit NAIA Rent
Solar drier Concrete pen 1 unit High way Barrow
cement

Talbe 3.Materials.

Table 3 represents the materials use in the implementation of the microproject.


Item Description Qty Unit Source Acquisition
Seeds NSIC RC 134 40 kg D.A. Purchase
variety
Fertilizer Complete (14-14-14) 1 bag Agricultural supply Purchase
Urea (46-0-0) 3 bag Agricultural supply Purchase
Vermi tea 1 Liter Agricultural supply Purchase
Foliar 1 box Agricultural supply Purchase
Insecticide Chemical 1 quart Agricultural supply Purchase
Fungicide Chemical 1 quart Agricultural supply Purchase
Mollusicide Chemical 10 Pack Agricultural supply Purchase
Engine Engine oil 1 Liter Gasoline station Purchase
Fuel Diesoline 50 Liter Gasoline station Purchase

Table 4.Equipments.

Table 4 represents the equipments use in the implementation of the project.


Item Description Qty Unit Source Acquisition
Spade Steel 1 Piece Owned Owned
Bolo Steel 1 Piece Owned Owned
Sprayer Knapsack sprayer (16L) 1 Unit MrEspares Rent
Pail Plastic 1 Piece Owned Owned

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4. Labor requirements

Table 5.Labor and requirements (Actual)

Table 5 represents labor requirements needed in the microproject.


Cash Non-Cash
Activity Ph Pd PAd Ph Pd PAd
Land preparation 1 2 7.5 1 1
Seed Soaking, Incubation and sowing 5

Application of organic fertilizer 5


Pulling of seedlings 2 1
Transplanting 9 1
Fertilizer application 8
Monitoring 63
Water management 6
Harvesting of rice (by contract)
Hauling 2
Drying 4
Marketing 1 1
Payment of acquisition 1
Total 1 18 9.5 89 4 0
Legend: Pad - Person Animal day=250.00; Pd - Person day=170.00; Ph – Person hour.

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B. Calendar of activities

Table 6.Calendar of activities (Actual)

Table 6 represents the calendar of activities of the microproject.

Inputs Required Non-


Date Activities Cash
Particular Qty Unit Unit Price cash
May
25 Purchasing NSIC RC134 40 kg 31.25 1250.00
of supplies Engine oil 1 L 150.00 150.00
and materials Crude oil 10 L 27.00 270.00
Vermi tea 2 L 200.00 400.00
Molluscide 5 pack 75.00 375.00
Insecticide 1 quart 750.00 750.00
Foliar fertilizer 1/2 Klo. 325.00 325.00
Urea (46-0-0) 1 bag 1,100.00 1,100.00
Complete (14- 1 bag 1,150.00 1,150.00
14-14)
Transportation 1 way 100.00
26 First Labor 2 Pmd 87.5 175.00
harrowing of
seedbed
preparation

27 Cleaning of Labor 2 Phr 25.00 50.00


dikes

28 Second Labor 2 pmd 87.5 175.00


harrowing of
seedbed
preparation

29 Fixing of Labor 2 phr 25.00 50.00


dikes
Miscellaneou 300.00
s
Sub total 6570.00 50.00
June Monitoring Labor 1 Phr 25.00 25.00
1 of water

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3 Spraying of Labor 1 Pd 25.00 25.00
Molluscide
4 Labeling of Labor 1 Phr 25.00 25.00
seedbed
5 Seed soaking Labor 1 Phr 25.00 25.00

6 Incubation of Labor 1 Phr 25.00 25.00


seeds
7 Seeds Labor 2 Phr 25.00 50.00
sowing
8 Drying of Labor 1 Phr 25.00 25.00
Seedbed
9 Monitorinf Labor 1 Phr 25.00 25.00
of Area
10 First Labor 5 Pmd 87.25 437.5
harrowing of
area
11 Cleaning of Labor 5 Phr 25.00 125.00
dikes
13 Second Labor 5 Pmd 87.5 437.5
harrowing of
area
14 Monitoring Labor 1 Phr 25.00 25.00
of water
15 Monitoring Labor 1 Phr 25.00 25.00
of water
16 Applying of Labor 1 Phr 25.00 25.00
fertilizer in
seedling
20 Monitoring Labor 1 Phr 25.00 25.00
of seedling
22 Spraying of Labor 1 Phr 25.00 25.00
insecticide in
seedling
24 Monitoring Labor 1 Phr 25.00 25.00
of area
25 Fixing of Labor 5 Phr 25.00 125.00
dikes
27 Monitoring Labor 1 Phr 25.00 25.00
of water
29 Monitoring Labor 1 Phr 25.00 25.0
of water
Miscellaneou 700.00
s
Sub total 1625.00 625.00
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Legend: Pad - Person Animal day; Pd - Person day; Ph - Person Hour

Table 6. (Continued) (Actual)

Inputs Required
Non-
Date Activities Particular Qty Unit Unit Cash
cash
price
July Monitoring Labor 1 Phr 25.00 25.00
1 of water
4 Monitoring Labor 1 Phr 25.00 25.00
of water
5 Monitoring Labor 1 Phr 25.00 25.00
of water
6 Spraying of Labor 3 Phr 25.00 75.00
Molluscicide
7 Levelling of Labor 1 Pad 300.00 300.00
area
8 Pulling of Labor 2 Pd 200.00 400.00
seedling
9 Transplanting Labor 10 Pd 180.00 1,800.00
10 Monitoring Labor 1 Phr 25.00 25.00
of water
11 Monitoring Labor 1 Phr 25.00 25.00
of area
12 Monitoring Labor 1 Phr 25.00 25.00
of area
13 Monitoring Labor 1 Phr 25.00 25.00
of area
14 Monitoring Labor 1 Phr 25.00 25.00
of area
15 Monitoring Labor 1 Phr 25.00 25.00
of area
16 Monitoring Labor 1 Phr 25.00 25.00
of area
17 Monitoring Labor 1 Phr 25.00 25.00
of area
18 Replanting Labor 1 Pd 200.00 200.00
21 Monitoring Labor 1 Phr 25.00 25.00
of area
22 Side Labor 3 Phr 25.00 75.00
Dressing
23 Monitoring Labor 1 Phr 25.00 25.00
of water

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24 Spraying of Labor 3 Phr 25.00 75..00
Insecticide

26 Monitoring Labor 1 Phr 25.00 25.00


of water
27 Monitoring Labor 1 Phr 25.00 25.00
of water
28 Monitoring Labor 1 Phr 25.00 25.00
of water
Miscellaneou 300.00
s
Subtotal 2850.00 775.00
August
1 Weeding Labor 2 Phr 25.00 50.00
4 Spraying of Labor 3 Phr 25.00 75.00
Organic
fertilizer
7 Monitoring Labor 1 Phr 25.00 25.00
of water
8 Top Dressing Labor 3 Phr 25.00 75.00
10 Monitoring Labor 1 Phr 25.00 25.00
of water
11 Monitoring Labor 1 Phr 25.00 25.00
of water
14 Spraying of Labor 1 Phr 25.00 25.00
insecticide
15 Cleaning of Labor 2 Phr 25.00 50.00
dikes
18 Monitoring Labor 1 Phr 25.00 25.00
of water
20 Monitoring Labor 1 Phr 25.00 25.00
of water
22 Monitoring Labor 1 Phr 25.00 25.00
of water
25 Monitoring Labor 1 Phr 25.00 25.00
of water
Miscellaneou 300.00
s
Subtotal 300.00 450.00
September
2 Monitoring Labor 1 Phr 25.00 25.00
of water

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4 Monitoring Labor 1 Phr 25.00 25.00
of water
6 Monitoring Labor 1 Phr 25.00 25.00
of water
9 Monitoring Labor 1 Phr 25.00 25.00
of water
10 Monitoring Labor 1 Phr 25.00 25.00
of water
14 Monitoring Labor 1 Phr 25.00 25.00
of water
15 Spraying of Labor 3 Phr 25.00 75.00
Foliar
fertilizer
18 Monitoring Labor 1 Phr 25.00 25.00
of water
19 Monitoring Labor 1 Phr 25.00 25.00
of water
22 Monitoring Labor 1 Phr 25.00 25.00
of water
23 Monitoring Labor 1 Phr 25.00 25.00
of area
28 Monitoring Labor 1 Phr 25.00 25.00
of water
Miscellaneou
s
Sub Total 75.00 275.00
Legend: Pad - Person Animal day; Pd - Person day; Ph - Person Hour.

Table 6. (Continued) (Actual)

Inputs Required
Non-
Date Activities Particular Qty Unit Unit Cash
Cash
price
October
3 Draining of Labor 2 Phr 25.00 50.00
area
4 Monitoring Labor 1 Phr 25.00 25.00
of area
5 Buying of Labor 40 Pcs 10.00 40.00
sacks
6 Purchasing Labor 1 Phr 25.00 25.00
of sacks
7 Monitoring Labor 1 Phr 25. 00 25.00
of area

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8 Monitoring Labor 1 Phr 25.00 25.00
of area
9 Harvesting By Contract 1 Phr 25.00 25.00
and hauling
Marketing Labor 1 Phr 25.00 25.00

Miscellaneous 400.00
Subtotal 400.00 240.00
Legend: Pad - Person Animal day; Pd - Person day; Ph - Person Hour.

Table 6.(Continued).
Inputs Required
Non-
Date Activities Particular Qty Unit Unit Cash
Cash
price
Payment of SMLF 10,000.00
loan
Subtotal 19,280.00 765.00
GRAND TOTAL 32,966.25 2,996.25
Legend: Pad - Person Animal day; Pd - Person day; Ph - Person Hour.

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CHAPTER IV

FINANCIAL ASPECT

A. Production cost

Table7.Production cost

Table 7 represents the production cost of the microproject.


Amount
Item
Cash Non-Cash
Seeds 700.00
Engine oil 150.00
Crude oil 1,300.00
Molluscide 300.00
Organic fertilizer 1,250.00
Insecticide 300.00
Foliar fertilizer 500.00
Urea (46-0-0) 3,300.00
Complete (14-14-14) 1,200.00
Sack 600.00
Transportation 950.00
Miscellaneous 600.00
Harvester rent 3,000.00
Land rent 3,000.00
NAIA rent 300.00
Labor 5,366.25 2,996.25
Loan interest 600.00
Sub-total 23,416.25 2,996.25
Grand-total 26,412.5

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B. Cash Flow Statement

Table 8. Cash flow statement.

Table 8 represents the cash flow statement of the microproject.

Item June July Aug Sept Oct


Cash Inflow
SMLF Loan 10,000.00
Equity 5,300.00
Sales 35,000.00
Total Cash Inflow(A) 15,300.00 0.00 0.00 0.00 35,000.00
Cash Outflow
Seeds 700.00
Engine oil 150.00
Molluscide 300.00
Crude oil 1,300.00
Organic Fertilizer 1,250.00
Insecticide 300.00
Foliar Fertilizer 500.00
Urea(46-0-0) 3,300.00
Complete (14-14-14) 1,200.00
Sack 600
Transportation 150.00 800.00
Miscellaneous 150.00 250.00 100.00 100.00 200.00
Harvester rent 3,000.00
Land Rent 3,000.00
NAIA Rent 300.00
Labor 1,191.25 2,745.00 1,180.00
Loan interest 600.00
Loan payment 10,000.00
Tools and Equipment rent 200.00
Equity 5,300.00
Total Cash Outflow (B) 10,491.25 2,995.00 100.00 100.00 25,180.00
Net Cash Result (A-B) 4,808.75 (2,995.00) (100.00) (100.00) 9,820.00
Opening Balance 0.00 4,808.75 1,813.75 1,713.75 1,613.75
Closing Balance 4,808.75 1,813.75 1,713.75 1,613.75 11,433.75

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C. Cost and return analysis

Table 9. Cost and return analysis.

Table 9 represents the cost and return analysis of the microproject.

Item Value(PhP)
Returns
Cash
Sales (40cavans X 50 kg X PhP17.50) 35,000.00
A. Total Cash Return 35,000.00
B. Total Non-Cash Return 0.00
C. Total Return(A+B) 35,000.00
Cash Cost
Seeds 1250.00
Engine oil 150.00
Crude oil 430.00
Molluscide 375.00

Foliar fertilizer 325.00


Urea (46-0-0) 1100.00
Complete (14-14-14) 1,150.00
Sack 400.00
Transportation 950.00
Miscellaneous 800.00
Harvester rent 3,096.00
Land rent 3,000.00
NAIA Rent 300.00
Labor 5,116.25
Loan interest 600.00
Tools and Equipment Rent 200.00
D. Total Cash Cost 23,266.25
Non-Cash Cost
Labor 2,996.25
E. Total Non-Cash Cost 2,996.25
F. Total Cost (D+E) 20,270.00
G. Return Above Cash Cost (C-D) 11,733.75
H. Return Above Non-Cash Cost (C-E) 32,003.75
I. Net Non-Cash Return (B-E) 2,996.25
J. Net Cash Return (A-D) 11,733.75
K. Net Profit (C-F) 14,730.00

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Table 9.(Continued).

Item Value(PhP)
L. Average Production Cost/kg. (P)
= Total Expenses
Total Production in kilogram

PhP 23,266.25
=
2,000 kg 11.63/kg

M. Break Even Yield/kg.


Total Cost
=
Proposed selling price

PhP 23,266.25
=
PhP 17.50/kg 1,329.5 kg

D. Return on investment.

Net profit
ROI= x 100
Total production cost

= 14,730.00
x 100
20,270.00

= 72.67%

Without non-cash

Net cash return


ROI= x 100
Cash cost

PhP11,733.75
= x 100
PhP 23,266.25

= 50.43%

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References:

Jualino B. O., 2003, Rice Chemistry and Quantity.Phil Rice Maligaya.Science City of

Munoz, Nueva Ecija.

Roque,A.S.2008.Appreciating Rice.Phil Rice.Maligaya, Science City of Munoz, Nueva

EcijaPhil

Philippine Rice Research Institute. 2002.Palaytandaan. Rice, Maligaya,

Munos,NuevaEcija

Philippine Rice Institute.2007. PalayCheck System Guide

Book.PhilRice,Maligaya,Science City of Munoz. Nueva Ecija

Lineses, C,M.2012,Rise with Rice: Rice (Oryza sativa)

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