10/27/2018

Economics of Coffee Production

Why Coffee?

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Coffee Marketing
• World Market • Domestic Market (2018)
– Demand – Demand (150,000 MT)
- 80% Specialty Coffee • 90% Robusta
- 20% Robusta • 10% Specialty Coffee
( Arabica, Barako, Exc)
_ Suppliers ** 12 M cups per day or
- South America 4 billion cups per year
- African Continent
- Asia and Pacific Islands
** Supply (30,000 MT)
In 2005, US coffee retail - N. Luzon – 14.00%
business is $ 8.4 billion - S. Luzon – 16.00%
- Visayas - 4.00%
** Source: DTI - ICOCA
- Mindanao – 66.00%

(Industry estimate, 2018)

International Coffee Market Classification

• SUSTAINABLE • ORGANIC COFFEE
– Grown kind to environment – Coffee produced without use of
– Promote education program pesticides/herbicides
– Provide for worker’s medical – Third party certification is
care, decent wages required
– Gives back to the land what – Emphasis on re-cycling,
trees use composting, environment
protection and soil health
BIRD SAFE, SHADE
GROWN FAIR TRADE COFFEE
- Benefit birds for natural habitat - Coffee traded directly by
- Reduces need for fertilizers growers giving farmers
- And herbicides more money
- Promotes bio diversification - Farmers are guaranteed a
minimum Fair Trade Price

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Income from coffee…..?

Yields of the most outstanding coffee

trees in Cavite, 2008
Winners Robusta Excelsa Liberica
(fresh
cherries)

1st 72.4kg 93kg 55.35kg

5 cans 6 cans 3.47 cans

2nd 52.6kg 89.9kg 28.6kilos

3.2 cans 5 cans 1.1 can

3rd 48.6kg 89.4

3 cans 5 cans

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Multiple Cropping, Cost and

Return Analysis
Enterprise Sales Production Net Profit

Coffee

Swine

Papaya

Banana

Total

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Economics of Coffee Production for a

Matured Coffee Plantation (Cavite
Condition)
Pruning Harvesting Drying(fresh Logistics Coffee Logistics
Farm Inputs Cost to dried
(3x/yr@5Mdays@P2 cherries) (to mill) Milling
(Fertilizers& 00), 400cans of fresh
Insecticides) berries@
Fertilization P30/can
(2x/yr@
4Mdays@200) &
Weeding4x/yr@3M
days@200)

P20000 + P7000 + P12000 + P2400 + P500 + P3500 P1000

P34600
Total sales at P80/kilo at P45400= total cost of
grade 2=P80000
- production
= (net income from
coffee)

Assumption 1) I Ton/ Hectare (Yield)

Assumption 2) 2 Tons/ Hectare(Yield)

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 10/27/2018

COSTS FOR A ONE-HECTARE

COFFEE PLANTATION
Cash Costs Non-cash Costs
• Labor (49%) • Depreciation of farm tools
establishment and equipment such as:
- care and - de pulper
- brush cutter
maintenance
- knapsack sprayer
- harvesting
- hoes
- post harvest processing
- sickles
• Seedlings (32%) - and others
• Farm Supplies (15%)
- fertilizer
- chemicals Non-Operating
- gasoline Expenses
• Interest on loans
• Repayment of loan

Source of capital/investment for

a One-Hectare
Coffee Plantation

• Equity from farmer including land

• Loans from bank

Revenue comes mainly from:

• Sales of coffee if mono cropped

• Sales of coffee, banana, papaya and other crops if intercropped

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 10/27/2018

• Ground Coffee
(Brewing)
– Specialty Gourmet
• Organic Blend
• Regular Coffee Blend of
two or more Varieties
• Civet Coffee
• Bat Coffee
• Pure Barako

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 10/27/2018

Income Statement for a One-hectare Arabica Plantation in the Philippines

Y E A R

Item Y1 Y2 Y3 Y4 Y5 Y6 Y7

Revenue
Sale of Coffee 133,280 a/ 233,200 b/ 333,200 c/ 399,840 d/ 433,160 e/

Total Revenue 133,200 233,200 333,200 399,840 433,160

Cash Operating Expenses
Coffee Seedlings f/ 25,000 2,505 - - - - -
Labor g/
Establishment
Field clearing 3,150 - - - - - -
Staking/Field layouting 630 - - - - - -
Hole digging 11,550 - - - - - -
Hauling of Seedlings 1,050 250 - - - - -
Field planting and basal
fertilization 4,410 - - - - - -
Care and Maintenance
Replanting 210 250 - - - - -
Weeding 630 630 630 630 630 630 630
Regular Fertilization 1,680 3,700 3,700 3,700 3,700 3,700 3,700
Pruning - - - 2,240 - 3,400 -
Harvesting - - 7,620 11,200 12,320 13,500 14,920
Post Harvest Processing
Depulping - - 1,270 2,240 3,080 4,070 4,,070
Drying - - 1,780 3,920 3,920 7,120 7,120
Hulling/Packing - - 1,335 2,340 3,340 4,000 4,350
Transportation - - 1,335 2,340 3,340 4,000 4,350
Farm Supplies
Carborandum 500 500 500 500 500 500 500
Fertilizer
Compost 26,550 - - 29,210 - - -
Complete (14-14-14) - - 3,500 - 25,750 33,000 36,300
Chemicals 1,000 1,000 1,000 1,200 2,000 3,000 4,000
Gasoline 3,420 3,420 3,420 3,420 3,420 3,420 3,420
Total Cash Operating
Expenses 85,450 17,925 31,760 68,610 67,670 86,070 89,030

Income Statement for a One-hectare Arabica Plantation in the Philippines (Continuation)

Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7

Non Cash Operating

Expenses
Depreciation h/ 3,330 3,330 7,000 7,000 7,000
7,000 7,000

Total Noncash Operating

Expenses 3,330 3,330 7,000 7,000 7,000 7,000
7,000

Non-operating Expenses
Interest Payments 6,000 6,000 6,000 3,000 -
- -
Repayment of Loan - - 25,000 25,000 -
- -

Total Nonoperating
Expenses 6,000 6,000 31,000 28,000 - -
-

Income Before Taxes (94,780) (27,255) 63,520 129,590 258,530 306,770

337,130

Income Taxes - - - 13,328 23,320 33,320

39,984

Net Income (Profit)

After Taxes (94,780) (27,255) 63,520 116,262 235,210 273,450
297,146

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Incremental Net Benefit from a One- Hectare Arabica Plantation in the Philippines

Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7
Value of Output
Cash Sales - - 133,280 233,200 333,200 399,840 433,160
Total Inflow - - 133,280 233,200 333,200 399,840 433,160
Cash Operating Expenses
Coffee Seedlings 25,000 2,505 - - - - -
Labor
Establishment
Field clearing 3,150 - - - - - -
Staking/Field
Layouting 630 - - - - - -
Hole digging 11,550 - - - - - -
Hauling of Seedlings 1,050 250 - - - - -
Field planting and
basal fertilization 4,410 - - - - - -
Replanting 210 250 - - - - -
Care and Maintenance
Weeding 6,300 6,300 6,300 6,300 6,300 6,300 6,300
Regular fertilization 1,680 3,700 3,700 3,700 3,700 3,700 3,700
Pruning - - - 2,240 - 3,400 -
Harvesting - - 7,620 11,200 12,320 13,560 14,920
Post Harvest Processing
Depulping - - 1,270 2,240 3,080 4,070 4,070
Drying - - 1,780 3,920 3,920 7,120 7,120
Hulling/Packing - - 1,335 2,340 3,340 4,000 4,350
Transportation - - 1,335 2,340 3,340 4,000 4,350
Farm Supplies
Carborandum 500 500 500 500 500 500 500
Fertilizer
Compost 26,550 - - 29,210 - - -
Complete - - 3,500 - 25,750 33,000 36,300
Chemicals 1,000 1,000 1,000 1,200 2,000 3,000 4,000
Gasoline 3,420 3,420 3,420 3,420 3,420 3,420 3,420
Total Outflow 85,450 17,925 31,760 68,610 67,670 86,070 89,030

Incremental Net Benefit from a One- Hectare Arabica Plantation in the Philippines

Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7

Net Benefit Before (85,450) (17,925) 101,520 164,590 265,530 313,770 344,130
Financing

Incremental Net Benefit - (103,375) 16,070 79,140 180,080 228,320 258,620

Before Tax

Loans received 50,000 - - - - - -

Repayment of loan - - 25,000 25,000 - - -

Interest payment 6,000 6,000 6,000 6,000 - - -
Net Financing 44,000 6,000 31,000 31,000 - - -

Net Benefit After (41,450) (23,925) 70,520 133,590 265,530 313,770 344,130
Financing

Incremental Benefit - (65,375) 29,070 92,140 224,080 272,320 302,680

After Financing

Income Tax - - - 13,328 23,320 33,320 39,984

Net Benefit After Tax (41,450) (23,925) 70,520 120,262 242,210 280,450 304,146

Incremental Net Benefit - (65,375) 29,070 78,812 200,760 239,000 262,696

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Summary of Financial Analysis for a One-Hectare Arabica Farm

Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7

Total Inflow - - 119,952 209,880 299,880 359,856 389,844

Total Outflow 85,450 17,925 31,760 68,610 67,670 86,070 89,030
Net Financing 44,000 (6,000) (31,000) (31,000) - - -
Income Tax - - - 13,328 23,320 33,320 39,984
Net Benefit (41,450) (23,925) 57,192 96,942 208,890 240,466 266,830
Present worth (12%) (37,015) (19,068) 40,720 61,655 118,441 121,916 117,895
NPW (12%) = 404,544
BCR = 2.59
FIRR = 99.8%

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Income Statement for a One-hectare Liberica/Excelsa Plantation in the Philippines

______________________________________________________________________________________________________
Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7

Revenue
Sales
Coffee - - - 22,200d/ 40,000 e/ 62,200 f/ 111,000 g/
Banana - 104,400 b/ 104,400 104,400 104,400 104,400 104,400
Papaya 162,200 a/ 486,000 c/ 486,000 - 486,000 486,000 -
Total Inflow 162,000 590,400 590,400 126,600 630,400 652,600 215,400
Cash Operating Expenses
Planting Materials
Coffee Seedlings h/ 13,320 - - - - - -
Banana Seedlings i/ 31,320 - - - - - -
Papaya Seedlings j/ 37,800 - - 37,800 - - 37,800
Transport of Seedlings 2,000 - - 1,000 - - 1,000
Water 6,000 - - 6,000 - - -
Labor
Establishment
Field Clearing 75,000 - - - - - -
Staking/Field Layouting 1,260 - - - - - -
Hole digging 22,680 - - 1,080 - - -
Hauling of Seedlings 1,260 - - 560 - - -
Field Planting - - - 1,400 - - -
Replanting - - - 280 - - -
Basal Fertilization 630 - - 280 - - -
Care and Maintenance
Weeding 6,300 6,300 6,300 6,300 6,300 6,300 6,300
Regular fertilization 6,300 6,930 7,620 8,400 9,240 10,200 11,190
Pruning - - - 560 650 680 750
Watering 10,080 - - 10,080 - - -
Harvesting
Coffee - - - 3,920 8,625 14,420 25,740
Banana - 8,960 8,960 8,960 8,960 8,960 8,960
Papaya 630 4,850 4,850 - 4,850 4,850 -

Income Statement for a One-hectare Liberica/Excelsa Plantation in the Philippines (Continuation)

Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7

Post Harvest Processing

Drying - - - 280 620 1,360 2,240
Hulling/Milling - - - 670 1,200 1,870 3,320
Packing/Transportation 500 2,500 2,500 1,500 4,000 4,500 3,000
Farm Supplies
Fertilizer
Compost 25,000 - - - - - -
Complete 7,500 25,500 36,000 40,000 50,000 50,000 50,000
Chemicals 3,000 3,000 4,000 4,200 5,000 5,000 5,000
Gasoline 3,420 3,510 3,600 3,700 3,780 3,870 3,960
Total Cash Operating
Expenses 254,000 61,550 73,830 135,970 103,225 111,830 120,470

Noncash Operating
Expense
Depreciation 3,420 3,420 3,420 3,420 3,420 3,420 3,420

Nonoperating Expenses
Interest Paid k/ 21,000 21,000 16,800 12,600 8,400 4,200 -
Repayment of Loan - 30,000 30,000 30,000 30,000 30,000 -

Income Before Income

Tax (116,420) 474,430 466,350 (55,390) 485,355 503,150 94,510
Income Tax - 16,200 59,040 59,040 12,660 63,040 65,260
Net Income After Tax 116,420) 458,230 407,310 114,430 472,695 440,110 29,250

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Incremental Net Benefit form a One- Hectare Liberica / Excelsa- Banana- Papaya Plantation in the Philippines

Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7

Value of Output
Cash Sales
Coffee - - - 22,200 40,000 62,200 111,000
Banana - 104,400 104,400 104,400 104,400 104,400 104,400
Papaya 162,200 486,000 486,000 - 486,000 486,000 -

Total Inflow 162,000 590,400 590,400 126,600 630,400 652,600 215,400

Cash Operating Expenses

Planting Materials
Coffee Seedlings 13,320 - - - - - -
Banana Seedlings 31,320 - - - - - -
Papaya Seedlings 37,800 - - 37,800 - - -
Transport of Seedlings 2,000 - - - - - -
Water 6,000 - - 6,000 - - -
Labor
Establishment
Field Clearing 75,000 - - - - - -
Staking/Field Layouting 1,260 - - - - - -
Hole digging 22,680 - - 1,080 - - -
Hauling of Seedlings 1,260 - - 560 - - -
Field Planting - - - 1,400 - - -
Replanting - - - 280 - - -
Basal Fertilization 630 - - 280 - - -

Care and Maintenance

Weeding 6,300 6,300 6,300 6,300 6,300 6,300 6,300
Regular fertilization 6,300 6,930 7,620 8,400 9,240 10,200 11,190
Pruning - - - 560 650 680 750
Watering 10,080 - - 10,080 - - -

Incremental Net Benefit form a One- Hectare Liberica / Excelsa- Banana- Papaya Plantation in the Philippines (Continuation)
Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7

Harvesting
Coffee - - - 3,920 8,625 14,420 25,740
Banana - 8,960 8,960 8,960 8,960 8,960 8,960
Papaya 1,620 4,850 4,850 - 4,850 4,850 -
Post Harvest Processing
Drying - - - 280 620 1,360 2,240
Hulling/Milling - - - 670 1,200 1,870 3,320
Packing/Transportation 500 2,500 2,500 1,500 4,000 4,500 3,000
Farm Supplies
Fertilizer
Compost 25,000 - - - - - -
Complete 7,500 25,500 36,000 40,000 50,000 50,000 50,000
Chemicals 3,000 3,000 4,000 4,200 5,000 5,000 5,000
Gasoline 3,420 3,510 3,600 3,700 3,780 3,870 3,960
Total Outflow 254,000 61,550 73,830 135,970 103,225 111,830 120,470
Net Benefit Before (92,000) 528,850 516,570 (9,370) 527,175 540,770 94,930
Financing
Incremental Net Benefit - 436,850 424,570 (101,370) 435,175 448,770 2,930
Before Tax
Loans received 150,000 - - - - - -
Repayment of loan - 30,000 30,000 30,000 30,000 30,000 -
Interest payment 21,000 21,000 16,800 12,600 8,400 4,200 -
Net Financing 129,000 51,000 46,800 42,600 38,400 34,200 -

Net Benefit After 37,000 477,850 469,770 (51,970) 488,775 506,570 94,930
Financing
Incremental Benefit - 440,850 432,770 (88,970) 451,775 469,570 57,930
After Financing
Income Tax - 16,200 59,040 59,040 12,660 63,040 65,260
Net Benefit After Tax 37,000 461,650 410,730 (111,010) 476,115 443,530 29,670
Incremental Net Benefit - 424,650 373,730 (148,010) 439,115 406,530 (7,330)

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Summary of Financial Analysis for a One-Hectare Liberica / Excelsa Plantation in the Philippines
Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7

Total Inflow 162,000 590,400 590,400 126,600 630,400 652,600 215,400

Total Outflow 254,000 61,550 73,830 135,970 103,225 111,830 120,470
Net Financing 129,000 (51,000) ( 46,800) ( 42,600) ( 38,400) (34,200) -
Income Tax - 16,200 59,040 59,040 12,660 63,040 65,260
Net Benefit 37,000 461,650 410,730 (111,010) 476,115 443,530 29,670
Present Worth (12%) 33,041 367,935 292,440 (70,602) 269,957 224,870 13,410
NPW (12%) = 1,324,284
BCR (12%) = 3.26
FIRR = > 4,000 %

Income Statement for One Hectare Coffee Clonal Seedling Production Project

Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7

INCOME
Sale of Coffee Seedlings
Production / yr
3 verrticals / 3 cuttings /
plant vertical (4x / yr) x 13,300 plants

=478,800 cuttings 5,601,960 5,601,960 6,032,880 6,032,880 6,463,800 6,463,800

Total Revenue 5,601,960 5,601,960 6,032,880 6,032,880 6,463,800 6,463,800

EXPENSES

I. COST
A. Personnel Services

1. Nursery Foreman @ 8,000/mo 96,000 96,000 105,600 105,600 116,160 116,160 127,776

2. Laborer 316,800 316,800 332,640 332,640 349,272 349,272 384,199

Bonus & Cash
3. Gift 39,600 39,600 40,730 40,730 41,957 41,957 42,684
SSS & other
4. benefits 15,000 15,000 15,000 15,000 15,000 15,000 15,000

Sub-total 467,400 467,400 493,970 493,970 522,389 522,389 569,659

B. Physical Facilities
1. Plant Propagator
10,000 seedlings @
P10,000 / propagator
12 propagator x P10,000 120,000
1 ha. Nursery
2. Shed
1 nursery shed 20 x 20
10,000 seedlings @
P65,000/shed
12 nursery shed x P65,000 780,000
3. Mist irrigation 300,000

Sub-total 1,200,000

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 10/27/2018

Income Statement for One Hectare Coffee Clonal Seedling Production Project

Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7

INCOME
Sale of Coffee Seedlings
Production / yr
3 verrticals / 3 cuttings /
plant vertical (4x / yr) x 13,300 plants

=478,800 cuttings 5,601,960 5,601,960 6,032,880 6,032,880 6,463,800 6,463,800

Total Revenue 5,601,960 5,601,960 6,032,880 6,032,880 6,463,800 6,463,800

EXPENSES

I. COST
A. Personnel Services

1. Nursery Foreman @ 8,000/mo 96,000 96,000 105,600 105,600 116,160 116,160 127,776

2. Laborer 316,800 316,800 332,640 332,640 349,272 349,272 384,199

Bonus & Cash
3. Gift 39,600 39,600 40,730 40,730 41,957 41,957 42,684
SSS & other
4. benefits 15,000 15,000 15,000 15,000 15,000 15,000 15,000

Sub-total 467,400 467,400 493,970 493,970 522,389 522,389 569,659

B. Physical Facilities
1. Plant Propagator
10,000 seedlings @
P10,000 / propagator
12 propagator x P10,000 120,000
1 ha. Nursery
2. Shed
1 nursery shed 20 x 20
10,000 seedlings @
P65,000/shed
12 nursery shed x P65,000 780,000
3. Mist irrigation 300,000

Sub-total 1,200,000

Income Statement for One Hectare Coffee Clonal Seedling Production Project (Continuation)
C. Labor
1. Cutting of stems
4MD @P250/day x 4x/yr 4,000 4,000 4,000 4,000 4,000 4,000
2. Pricking to prop tunnel
9MD @P250/day x 4x/yr 9,000 9,000 9,000 9,000 9,000 9,000
3. Bagging of soil
24MD @P250/day 120,000 120,000 120,000 120,000 120,000 120,000
x 5 days x 4x/yr
4. Planting / potting 12,000 12,000 12,000 12,000 12,000 12,000
24MD @P250/day
Sub-total 145,000 145,000 145,000 145,000 145,000 145,000

D. Supplies and Materials

1. For Mother Clonal Garden
a. Insecticide 10 lts. @ P1,000/lit 11,000 12,100 13,310 14,641 16,105 17,716 19,487
b. Fungicide 10 kgs @ P750/kg 7,500 8,250 9,075 9,983 10,981 12,079 13,287
c. Herbicide 5 lts. @ P1,200/lit 6,000 6,600 7,260 7,986 8,785 9,663 10,629
d. Fertilizer
17-7-17 10 bags @ P485/bag 4,850 5,335 5,869 6,455 7,101 7,811 8,592
0-18-0 7 bags @ P350/bag 2,450 2,695 2,965 3,261 3,587 3,946 4,340
46-0-0 10 bags @ P520/bag 5,200 5,720 6,292 6,921 7,613 8,375 9,212
0-0-60 4 bags @ P530/bag 2,120 2,332 2,565 2,822 3,104 3,414 3,756
Grow plus 25 bags @ P240/bag 6,000 6,600 7,260 7,986 8,785 9,663 10,629
2. For Cuttings/Seedlings
a. Fertilizer
17-7-17 240 bags @ P485/bag 116,400 128,040 140,844 154,928 170,421 187,463
b. Rooting Hormone
4x / yr 7 lts. @ P1,000/lit 28,000 30,800 33,880 37,268 40,995 45,094
c. Insecticide 48 lts. @ P1,000/lit 52,800 58,080 63,888 70,277 77,304 85,035
d. Fungicide 48 kgs @ P750/kg 36,000 39,600 43,560 47,916 52,708 57,978
e. Plastic bags 287,280 316,008 347,609 382,370 420,607 462,667
f. Garden soil 12 truckloads @ P600 7,200 7,920 8,712 9,583 10,542 11,596
g. Fine river sand 12 truckloads @ P600 7,200
h. Compost 12 truckloads @ P600 7,200 7,920 8,712 9,583 10,542 11,596
Sub-total 52,320 584,512 642,963 707,260 777,985 855,784 941,362

TOTAL CASH OPERATING EXPENSES 1,719,720 1,196,912 1,281,933 1,346,230 1,445,374 1,523,173 1,656,022

14
 10/27/2018

Income Statement for One Hectare Coffee Clonal Seedling Production Project (Continuation)

D. Other Expenses

Payment of Loan 429,930 429,930 429,930 429,930

Interest Expense 240,761 240,761 240,761 180,571 120,380 60,190

Sub-total 240,761 240,761 670,691 610,501 550,310 490,120 -

Non-cash Expenses
Depreciation 120,000 120,000 120,000 120,000 120,000 120,000

TOTAL EXPENSES 1,960,481 1,557,673 2,072,624 2,076,730 2,115,684 2,133,293 1,776,022

NET INCOME BEFORE TAX (1,960,481) 4,044,287 3,529,336 3,956,150 3,917,196 4,330,507 4,687,778

INCOME TAX 560,196 560,196 603,288 603,288 646,380

NET INCOME AFTER TAX (1,960,481) 4,044,287 2,969,140 3,395,954 3,313,908 3,727,219 4,041,398

RETURN OF INVESTMENT -100.00% 38.52% 58.73% 52.49% 54.01% 49.26% 37.89%

Incremental Net Benefit from a One Hectare Coffee Clonal Seedling Production Project

Y E A R
Item Y1 Y2 Y3 Y4 Y5 Y6 Y7
VALUE OF OUTPUT
Cash Sales 5,601,960 5,601,960 6,032,880 6,032,880 6,463,800 6,463,800
Total Inflow 5,601,960 5,601,960 6,032,880 6,032,880 6,463,800 6,463,800
EXPENSES
CASH OPERATING
EXPENSES
A. Personnel Services
1. Nursery Foreman @ 8,000/mo 96,000 105,600 105,600 116,160 116,160 127,776
96,000
2. Laborer 316,800 332,640 332,640 349,272 349,272 384,199
316,800
3. Bonus & Cash Gift 39,600 40,730 40,730 41,957 41,957 42,684
39,600
4. SSS & other benefits 15,000 15,000 15,000 15,000 15,000 15,000
15,000
Sub-
467,400 493,970 493,970 522,389 522,389 569,659
total 467,400
B. Physical Facilities
1. Plant Propagator
10,000 seedlings @ P10,000 / propagator
12 propagator x P10,000
120,000
2. 1 ha. Nursery Shed
1 nursery shed 20 x 20
10,000 seedlings @
P65,000/shed
12 nursery shed x P65,000
780,000
3. Mist irrigation
300,000
Sub-total
1,200,000

15
 10/27/2018

Incremental Net Benefit form a One Hectare Coffee Clonal Seedling Production Project (Continuation)
C. Labor
1. Cutting of stems 4MD @P250/day x 4x/yr 4,000 4,000 4,000 4,000 4,000 4,000
Pricking to prop tunnel 9MD @P250/day x
2. 9,000 9,000 9,000 9,000 9,000 9,000
4x/yr
Bagging of soil 24MD
3.
@P250/day
x 5 days x 4x/yr 120,000 120,000 120,000 120,000 120,000 120,000
Planting / potting 24MD
4. 12,000 12,000 12,000 12,000 12,000 12,000
@P250/day
Sub-total
145,000 145,000 145,000 145,000 145,000 145,000
D. Supplies and Materials
1. For Mother Clonal Garden
Insecticide 10 lts. @
a. 12,100 13,310 14,641 16,105 17,716 19,487
P1,000/lit 11,000
Fungicide 10 kgs @
b. 7,500 8,250 9,075 9,983 10,981 12,079 13,287
P750/kg
Herbicide 5 lts. @
c. 6,600 7,260 7,986 8,785 9,663 10,629
P1,200/lit 6,000
d. Fertilizer
17-7-17 10 bags @
4,850 5,335 5,869 6,455 7,101 7,811 8,592
P485/bag
0-18-0 7 bags @
2,695 2,965 3,261 3,587 3,946 4,340
P350/bag 2,450
46-0-0 10 bags @
5,200 5,720 6,292 6,921 7,613 8,375 9,212
P520/bag
0-0-60 4 bags @
2,332 2,565 2,822 3,104 3,414 3,756
P530/bag 2,120
Grow plus 25 bags @
6,600 7,260 7,986 8,785 9,663 10,629
P240/bag 6,000
2. For Cuttings/Seedlings
a. Fertilizer
17-7-17 240 bags @
116,400 128,040 140,844 154,928 170,421 187,463
P485/bag
b. Rooting Hormone 4x / yr
7 lts. @ P1,000/lit 28,000 30,800 33,880 37,268 40,995 45,094
Insecticide 48 lts. @
c. 52,800 58,080 63,888 70,277 77,304 85,035
P1,000/lit
Fungicide 48 kgs @
d. 36,000 39,600 43,560 47,916 52,708 57,978
P750/kg
e. Plastic bags 287,280 316,008 347,609 382,370 420,607 462,667
f. Garden soil 12 truckloads @ P600 7,200 7,920 8,712 9,583 10,542 11,596
Fine river sand 12
g.
truckloads @ P600 7,200
Compost 12 truckloads @
h. 7,200 7,920 8,712 9,583 10,542 11,596
P600
Sub-total 584,512 777,985 855,784 941,362
52,320 642,963 707,260
TOTAL OUTFLOW
1,719,720 1,196,912 1,281,933 1,346,230 1,445,374 1,523,173 1,656,022

Incremental Net Benefit form a One Hectare Coffee Clonal Seedling Production Project (Continuation)

Net Benefit Before Financing (1,719,720) 4,405,048 4,320,027 4,686,650 4,587,506 4,940,627 4,807,778

Incremental Net Benefit Before Tax 2,685,328 2,600,307 2,966,930 2,867,786 3,220,907 3,088,058
Loans Received 1,719,720

Payment of Loan 429,930 429,930 429,930 429,930

Interest Expense 240,761 240,761 240,761 180,571 120,380 60,190

Net Financing 1,478,959 240,761 670,691 610,501 550,310 490,120

Net Benefit After Financing (240,761) 4,164,287 3,649,336 4,076,150 4,037,196 4,450,507 4,807,778

Incremental Benefit After Financing 3,923,526 3,408,575 3,835,389 3,796,435 4,209,746 4,567,017

INCOME TAX 560,196 560,196 603,288 603,288 646,380

NET BENEFIT AFTER TAX (240,761) 4,164,287 3,089,140 3,515,954 3,433,908 3,847,219 4,161,398
INCREMENTAL NET
BENEFIT 3,923,526 2,848,379 3,275,193 3,193,147 3,606,458 3,920,637

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 10/27/2018

Summary of Financial Analysis for a One-Hectare Clonal Rooted Cuttings Propagation

TOTAL INFLOW 5,601,960.00 5,601,960.00 6,032,880.00 6,032,880.00 6,463,800.00 6,463,800.00

TOTAL OUTFLOW 1,719,720.00 1,196,912.00 1,281,933.00 1,346,230.00 1,445,374.00 1,523,173.00 1,656,022.00

NET FINANCING 1,478,959.00 240,761.00 670,691.00 610,501.00 550,310.00 490,120.00

INCOME TAX 560,196.00 560,196.00 603,288.00 603,288.00 646,380.00

NET BENEFIT (240,761.00) 4,164,287.00 3,089,140.00 3,515,953.00 3,433,908.00 3,847,219.00 4,161,398.00

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