Beruflich Dokumente
Kultur Dokumente
1.0 Introduction
Earthworms vermicompost is proving to be highly nutritive ‘organic fertilizer’ and more powerful “growth promoter” over the
conventional composts and a ‘protective’ farm input (increasing the physical, chemical & biological properties of soil, restoring &
improving its natural fertility) against the “destructive” chemical fertilizers which has destroyed the soil properties and decreased its
natural fertility over the years. Vermicompost is rich in NKP (nitrogen 2-3%, potassium 1.85-2.25% and phosphorus 1.55-2.25%),
micronutrients, beneficial soil microbes and also contain ‘plant growth hormones & enzymes’. It is scientifically proving as ‘miracle
growth promoter & also plant protector’ from pests and diseases. Vermicompost retains nutrients for long time and while the
conventional compost fails to deliver the required amount of macro and micronutrients including the vital NKP to plants in shorter
time, the vermicompost does.
1.1 PROJECT RATIONALE
MARKET POTENTIAL
Vermicomposting is a type of composting in which certain species of earthworms are used to enhance the process of organic
waste conversion and produce a better end-product. It is a mesophilic process utilizing microorganisms and earthworms. Earthworms
feeds the organic waste materials and passes it through their digestive system and gives out in a granular form (cocoons) which is
known as vermicompost.
Simply speaking, vermicompost is earthworm excrement, called castings, which can improve biological, chemical, and
physical properties of the soil. The chemical secretions in the earthworm’s digestive tract help break down soil and organic matter, so
the castings contain more nutrients that are immediately available to plants.
The purpose of this project is to promote organic fertilizer as part of new practices of farming and to provide information about
worm or vermi composting with an emphasis on intensive low acreage organic food production in bed systems or protected
cultivation.
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2.0 MARKETING ASPECT
DEMAND
Source : Based on the data we gathered on two farms of Vermi Compost in San Ildefonso, Bulacan
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YEAR 2023 2024 2025 2026 2027
SUPPLY
Historical Supply for Oyster Mushroom in (Basuit, San Ildefonso,Bulacan) (in kgs.)
Source : Based on the data we gathered on two farms of Oyster Mushroom in San Ildefonso, Bulacan
Projected Supply for Oyster Mushroom in (San Ildefonso,Bulacan) for ten years in (kgs.)
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YEAR 2023 2024 2025 2026 2027
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The price of our product vermicompost is just the same as the price of our competitors which is 190.00 per kilogram.
Based on the survey and distributed questionnaire, majority of the consumer of vermicomposting are those who are engaged in
business that uses organic fertilizer, 60% of the consumer are engaged in organic farming while 30% are the inorganic farming and
10% are in the backyard garden.
The flow of distribution is from producers, to wholesalers and then retailers and lastly the consumers.
The propose business will be establish at Gabihan, San Ildefonso, Bulacan. The target market will be the market to the barangay’s
of San Ildefonso that engage to organic farming.
The selected barangay in Bulacan will be on Gabihan, San Ildefonso , Bulacan have a total of approximately 5 sellers.
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2.3.1 Product Feature/Design
Our product is Vermi Compost, it easy to produce and the raw material is available in our natural resources. It also helps the plant
to produce good quality of yields.
It contains nutrients that plant can benefit more (nitrogen 2-3%, potassium 1.85-2.25% and phosphorus 1.55-2.25%)
The packaging strategy of vermicompost are simply put in plastic (polythene) with nutrition facts with our logo’s.
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The logo shows the name of the business and the product it offers. It is colored green to show abundance and being environmentally-
friendly. It is circular in shape to show the earth which initially measures a firm’s success; process, product and personnel.
The proposed project business VermiCompost production will range at the price P190.00 per kilogram.
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5 950.00
6 1,140.00
7 1,330.00
8 1,520.00
9 1,710.00
10 1,900.00
Price Comparison
Price per kilogram
ABC Farm 200.00
DEF Farm 200.00
2.3.3 Promotion and Advertisement
The producer will be providing pliers regarding the nutrients derived from vermicompost products and distribute it to potential
customers. This is to create awareness about vermicompost and the effects of vermicompost in plants.
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2.3.4 Product Distribution Strategies
The marketing of vermicompost follows the traditional distribution channel, through middleman or wholesalers at farm to
identifies potential buyers and negotiate price, or directly to retailers in rural markets.
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Add the earthworm
The first step is to collect all raw materials, second steps chopped the sheathing leafstalks of banana, third step you put the
carabao manure in the top of the sheathing leafstalks of banana, fourth step put kakawate leaves at the top of the carabao manure, fifth
step put some earthworm in the top of the kakawate leaves, sixth step then repeat it again the second step, seventh step watered the
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compost, eigth step covered it, and water it everyday then after several days you add again carabao manure and after 1 month you can
now harvest the compost.
The major target market during the first year of operation would be the wholesaler, retailer in San Ildefonso. If the Vermicompost
supply exceeds the demand in San Ildefonso, the business would be targeting wholesalers and retailers in the nearby town.
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Project demand - Unfilled Demand
The proposed project area is propose location had been chosen by the proponent considering such as factors as the availability of
resources, accessibility to the potential customer location cost and the environment of the business.
According to the nature of the propose project, which is in line with the production type of business, is non residential area has
been the prime consideration of the proponents in choosing the site of the business.
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Figure vicinity map of the propose Vermicompost
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VERMICOMPOST FARM LAYOUT
Shreddering Weighing &
Vermi Bed Bagging
Area Area
PATH WAY
Chopping
Area Filterring
Vermi Bed Area
The proposed business vermicompost falls under the production type of the business providing the wholesalers and retailers for their
selling purposes of organic fertilizers particularly those who need organic fertilizers in their farming business in different farms in
Bulacan and other nearby farms vermicompost will established 1200 kg. per year.
2018 19,000kg.
2019 19,990kg.
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2020 20,500kg.
2021 21,300kg.
2022 22,100kg.
2023 23,110kg.
2024 24,020kg.
2025 25,670kg.
2026 26,100kg.
2027 27,500kg.
TOTAL 209,300kg.
The production process of Vermicompost is from earthworm, chop the banana leaf stalk, second add the animal manure, kakawate or
ipil-ipil leaves and the earthworm, repeat the second steps and covered the area then watered everyday, after several days add again
carabao manure. Month later, Vermicompost are ready to harvest and packaging. Then it will be delivered to market. 3.4
Vermi Compost Production fixed asset are one building with only one room for the processing and all the process in this room is
done composting, mixing machine, packaging machine and conveyor machine composting, chopping, soaking area, sterilization area,
cooling area, inoculation area, incubation area, growing area. They will use close van to transport or deliver the products to the
market.
Vermicompost is an Eco – friendly business because the waste itself is our raw material.
Activities to be conducted:
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Conducting of Feasibility Study
Planning Stage
Acquisition of funds
Registration/ Legal Papers Arrangement
Dealing with the Spawn Suppliers
Buying of Location site
Preparation for construction
Establishment of Building
Training of Staff/ Operating Personnel
Purchasing of Operation Supply
Advertising
The project will adopt a sole proprietorship type of business organization. The production was founded by Maribeth Sta. Cruz
Cruz who were thinking for a great business where she can invest her savings, due to high and easy production of vermicompost.
The possible opportunities attract wholesalers and retailers that is why the production was formed.
Vermicompost Production will implement a democratic style of management. This means that employees will have privilege and
will be allowed to participate in the decision making concerning the production process.
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ORGANIZATIONAL SET-UP
Manager
Sales Manager
Laborers Driver
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-Must have a background
knowledge on mushroom
cultivation .
-Must be honest
-Must be a partner
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willing to undergo training will be responsible in delivery
and distribution of oyster
-Must be mushroom to the customers.
literate
The proposed business will have a total of 6 persons including the General Manager, 5 laborers, and 1driver.
Position Yearly
Laborer 1 144,000
Laborer 2 144,000
Laborer 3 144,000
Laborer 4 144,000
Laborer 5 144,000
Laborer 6 144,000
Laborer 7 144,000
Laborer 8 110,000
Laborer 9 110,000
Driver 110,000
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TOTAL 1,338,000
Employee Benefits
PhilHealth, PAG-IBIG,SSS, and the 13th Month pay will be provided for all employees.
4.2.5 Others
Company Policies
In the organization, policies and principles play an important role because this helps organization to become more efficient and
effective. This will guide the whole business and help to achieve the company’s goals.
Vermi Land Company will announce job vacancies. The proposed business will recruit and employ workers on the basis of their
qualification of work. Referrals from trusted people will also be entertained. Qualified applicants will then pass the necessary
requirements to the management such as:
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Resume
Policies And Days of Works
Employees will work on six(6) days a week. The compensation will be on daily basis. The employees are intended to rest once a
week.
Work Schedule
All employees are entitled to one (1) rest day. The Laborer 1 will take rest day on Saturdays and the Laborer 2 will take his rest
day on Sundays and the Laborer 3 will take his rest day on Mondays. The Driver 1 will take his rest day on Sundays.
DATE
Registration Legal Paper Agreements April 27, 2018- May 27, 2018
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Purchasing of Operating Suppliers October 7, 2018- November 10,2018
Actions Januar Februar Marc Apri Ma Jun Jul Augus Septembe Octobe Novembe Decembe
y y h l y e y t r r r r
Conducting of
Feasibility
Study
Planning Stage
Acquisition
Funds
Registration
Legal Paper
Agreements
Dealing on
Spawn
Suppliers
Buying of
Operating Site
Preparation of
Construction
Establishment
of Building
Hiring/Trainin
g of Staffs
Purchasing of
Operating
Suppliers
Start of
Operation
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5.0 FINANCIAL ASPECT
This project needs a capital investment amounting to ₱1,227,571.00 broken down as it follows:
Fixed Asset:
Machinery ₱175,000.00
Land ₱500,000.00
Current Assets
Inventories:
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Inventory related Cost:
Maintenance ₱10,000.00
Intangible Assets:
Licenses ₱3,000.00
Total : 2, 762,771.00
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Financing Source : 74% Vermi Compost
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3JRIK OYSTER MUSHROOM PRODUCTION
PROJECTED INCOME STATEMENT
FOR YEARS ENDED 2018-2027
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Sales 3,610,000.00 3,798,100.00 3,895,000 4,047,000 4,199,000 4,390,900 4,563,800 4,877,300 4,959,000 5,225,000
Less: Cost of
Sales 700,000 735,000 771,750 810,333.50 850,850.18 893,392.68 938,062.31 984,965.43 1,034,213.70 1,085,924.39
Gross Profit 2,910,000 3,063,100 3,123,250 3,236,666.50 3,348,149.82 3,497,507 3,625,737.69 3,892,334.57 3,924,786.30 4,139,075.61
Less:
Operating
Expenses
Depreciation
Expense
Machineries 15,750 15,750 15,750 15,750 15,750 15,750 15,750 15,750 15,750 15,750
Depreciation
Expense-
Delivery
Equipment 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000
Depreciation
Expense-
Building and
Facilities 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500
Maintenance
Cost 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Advertisement 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
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Delivery
Expense 10,000 10,500 11,025 11,576.25 12,155.06 12,762.82 13,400.96 14,071 14,774.55 15,513.28
Salaries
Expense 1,338,000 1,338,000 1,338,000 1,338,000 1,338,000 1,338,000 1,338,000 1,338,000 1,338,000 1,338,000
Utilities 5,000
Expense 5,250 5,512.50 5,788.13 6,077.53 6,381.41 6,700.48 7,035.50 7,387.28 7,756.64
Other
Expenses
Pre-operating
Expenses 4,000 ₱- ₱- ₱- ₱- ₱- ₱- ₱- ₱- ₱-
Audit
Fees/Permit
Licenses and
Fees 3,000 3,150 3,307.50 3,472.88 3,646.52 3,828.84 4,020 4,221 4,432.37 4,653.98
Total 1,455,250 1,452,150 1,453,095 1,454,087 1,455,129 1,456,223 1,457,372 1,458,578 1,459,844 1,461,174
Earning
Before
Income Tax 1,454,750.00 1,610,950.00 1,670,155 1,782,579.50 1,893,021 2,041,284 2,168,365.69 2,433,756.57 2,464,942.30 2,677,901.61
Less: Income
Tax (25%) 363,688 402,737.50 417,538.75 445,644.75 473,255 510,321 542,091.42 608,439.14 616,235.58 669,475.40
Net Income 1,091,062 1,208,212.50 1,252,571.25 1,336,934.75 1,419,766 1,530,963 1,626,274.27 1,825,317.43 1,848,706.72 2,008,426.21
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3JRIK OYSTER MUSHROOM SPRODUCTION
Assets 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Current Assets
Cash 153,500.00 570,875.00 1,058,656.25 1,617,214.06 2,250,087.26 2,960,991.62 3,753,828.70 4,632,695.14 5,601,892.40 6,665,937.02
Raw Materials 700,000.00 735,000.00 771,750.00 810,337.50 850,854.38 893,397.09 938,066.95 984,970.30 1,034,218.81 1,085,929.75
Total Current
Assets 853,500.00 1,305,875.00 1,830,406.25 2,427,551.56 3,100,941.64 3,854,388.71 4,691,895.65 5,617,665.44 6,636,111.21 7,751,866.77
Non-Current
Assets
Machinery 175,000.00 175,000.00 175,000.00 175,000.00 175,000.00 175,000.00 175,000.00 175,000.00 175,000.00 175,000.00
Acc.Dep.
Machinery (15,750.00) (31,500.00) (47,250.00) (63,000.00) (78,750.00) (94,500.00) (110,250.00) (126,000.00) (141,750.00) (157,500.00)
Delivery
Equipment 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00
Acc.Dep.
Delivery
Equipment (27,000.00) (54,000.00) (81,000.00) (108,000.00) (135,000.00) (162,000.00) (189,000.00) (216,000.00) (243,000.00) (270,000.00)
Building and
Facilities 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00
Acc.Dep.
Building and
Facilities (22,500.00) (45,000.00) (67,500.00) (90,000.00) (112,500.00) (135,000.00) (157,500.00) (180,000.00) (202,500.00) (225,000.00)
Land 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00
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Total Non-
current Assets 1,159,750.00 1,094,500.00 1,029,250.00 964,000.00 898,750.00 833,500.00 768,250.00 703,000.00 637,750.00 572,500.00
Total Assets 2,013,250.00 2,400,375.00 2,859,656.25 3,391,551.56 3,999,691.64 4,687,888.71 5,460,145.65 6,320,665.44 7,273,861.21 8,324,366.77
Liabilities
Income Tax
Payable 136,625.00 159,931.25 417,538.75 445,644.75 473,255.00 510,321.00 542,091.42 608,439.14 616,235.58 669,475.40
Total liabilities 1,246,625.00 1,312,737.50 1,127,538.75 955,644.75 783,255.00 510,321.00 542,091.42 608,439.14 616,235.58 669,475.40
Owners Equity
Capital 766,625.00 1,087,637.50 1,732,117.50 2,435,906.81 3,216,436.64 4,177,567.71 4,918,054.23 5,712,226.30 6,657,625.63 7,654,891.37
Total Owners
Equity 766,625.00 1,087,637.50 1,732,117.50 2,435,906.81 3,216,436.64 4,177,567.71 4,918,054.23 5,712,226.30 6,657,625.63 7,654,891.37
Total Liabilities
and Owners
Equity 2,013,250.00 2,400,375.00 2,859,656.25 3,391,551.56 3,999,691.64 4,687,888.71 5,460,145.65 6,320,665.44 7,273,861.21 8,324,366.77
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5.5
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Measures of Project Worth
BCR at 11% = 1.52%
NPW at 11% = 3.05%
NPW at 25% = -0.57%
PI at 11% = 3.05%
IRR = 22.80%
PP = 1.82
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5.5.3 FINANCIAL SENSITIVITY TEST
GROSS NET
BENEFIT GROSS BENEFIT
YEAR (GB) COST (GC) (NB) DGB @11% DGC @11% DNB @11% DNB @25%
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A. Assumption #1
What if Gross Cost increase by 1% during the actual operating period (Year 1-10) ; gross benefits remains the same as forecasted.
0 (2,762,771.00) (2,762,771.00)
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NPW @ 11%
=
2.986207854
NPW @25%
=
(1.704012385)
IRR =
19.93%
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B. Assumption #2
What if there will be a 1% shortfall in Gross Benefit yearly due to drop selling price; Gross Costs remains
YEAR Gross Benefit (GB) Gross Cost (GC) Net Benefit (NB) DNB @ 12% DNB @ 4%
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Assumption #3
What if there will be a 1% shortfall in Gross Benefits and 1% cost overrun during the actual operating period
(simultaneous occurrence).
Gross Benefit
YEAR Gross Cost (GC) Net Benefit (NB) DNB @ 11% DNB @ 25%
(GB)
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6.0 SOCIO-ECONOMIC ASPECT
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