Liters/Week

Commulative

MONTH 1
Week 1 Week 2 Week 3 Week 4
5,000
5,000
5,000
5,000

MONTH 2
Week 1 Week 2 Week 3
20,000
5,000
5,000
5,000

per 1000 liters

DAY 1
YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Production
Less Cost of Sales
Total

Inventory
Plus: Beginning Inventory
Ending Inventory

ONTH 2
Week 4
5,000

20,000

40,000
240,000
17%

TABLE 1: ESTIMATED RICE SUPPLY AND DEMAND

QUEZON PROVINCE

39%
SUPPLY (MT)

Year

2011
2010
2009
2008
2007

Harvested Area
(ha)
54,469
45,290
43,306
49,670
48,512

Gross
Production
(MT)
206,554
177,176
169,039
201,147
191,333

Ave Yield

3.8
3.9
3.9
4.0
3.9

Feeds/
Wastage
(MT) (6.5% of
total
Production)
13,426.01
11,516.44
10,987.54
13,074.56
12,436.65

Seed Usage
(MT) (75Kg/ha)
4,085.18
3,396.75
3,247.95
3,725.25
3,638.40

Net
Production
(MT)
189,043
162,263
154,804
184,347
175,258

Rice Milling
Recovery
(65%)
122,878
105,471
100,622
119,826
113,918

DEMAND(MT)
Growth Rate (in
%age)
17%
5%
-16%
5%

Population

2,009,752
1,977,650
1,945,548
1,913,968
1,882,900

SUPPLY (MT)

Year

2011
2010
2009
2008
2007
AVERAGE (5 yrs)
AVERAGE (3 yrs)

Year

2011
2012
2013
2014
2015
2016

Sufficiency
Level

Harvested Area

20%
5%
-13%
2%

17%
5%
-16%
5%

3.8
3.9
3.9
4.0

4%
4%

3%
2%

3.91
3.87

Target
Sufficiency
Level
52.94%
54.51%
56.12%
57.78%
59.50%
61.26%

Harvested Area
(ha)
54,469
56,648
58,914
61,270
63,721
66,270

Ave Yield

Gross
Production
(MT)
206,554.00
216,881.70
227,725.79
239,112.07
251,067.68
263,621.06

Seed Usage
(MT) (75Kg/ha)
0.02
0.00
(0.01)
0.00
0%

Seed Usage
(MT) (75Kg/ha)
4,085.18
4,248.58
4,418.53
4,595.27
4,779.08
4,970.24

Feeds/
Wastage
(MT) (6.5% of
total
Production)
17%
5%
-16%
5%
3%
2%

Net
Production
(MT)

Rice Milling
Recovery
(65%)

17%
5%
-16%
5%

17%
5%
-16%
5%

3%
2%

3%
2%

SCENARIO 1: 5% increase in gross production

Feeds/
Net
Rice Milling
Wastage
Recovery
(MT) (6.5% of Production
(MT)
(65%)
total
Production)
13,426.0
189,042.82
122,877.83
14,097.3
198,535.81
129,048.27
14,802.2
208,505.08
135,528.30
15,542.3
218,974.52
142,333.44
16,319.4
229,969.20
149,479.98
17,135.4
241,515.45
156,985.04

SCENARIO 2: 10% increase in gross production

Per Capita Consumption

Surplus/
of Rice (MT)
Deficit (MT)
(115.492kg)
232,110
228,403
224,695
199,857
196,612

(109,232)
(122,932)
(124,073)
(80,031)
(82,695)

DEMAND(MT)
Growth Rate (in
%age)

#DIV/0!

Population

2,009,752.00
2,049,947.04
2,090,945.98
2,132,764.90
2,175,420.20
2,218,928.60

Population

Per Capita Consumption

Surplus/
of Rice (MT)
Deficit (MT)
(115.492kg)

2%
2%
2%
2%

0%
0%
0%
0%

-11%
-1%
55%
-3%

2%
2%

0%
0%

10%
14%

Per Capita
Consumption of
Rice (MT)
(115.492kg)

Surplus/ Deficit (MT)

VARIANCE

232,110
236,752
241,488
246,317
251,244
256,269

(109,232)
(107,704)
(105,959)
(103,984)
(101,764)
(99,283)

1.57%
1.61%
1.66%
1.71%
1.76%

Year

2011
2012
2013
2014
2015
2016

Year

2011
2012
2013
2014
2015
2016

Year

2011
2012
2013
2014
2015
2016

Year

2011
2012

Target
Sufficiency
Level
52.94%
57.16%
61.71%
66.62%
71.92%
77.63%

Target
Sufficiency
Level
52.94%
59.81%
64.57%
69.70%
75.24%
81.22%

Target
Sufficiency
Level
52.94%
62.46%
67.43%
72.79%
78.57%
84.80%

Target
Sufficiency
Level
52.94%
65.11%

Harvested
Area (ha)
54,469.00
56,648
58,914
61,270
63,721
66,270

Harvested
Area (ha)
54,469.00
56,648
58,914
61,270
63,721
66,270

Harvested
Area (ha)
54,469.00
56,648
58,914
61,270
63,721
66,270

Harvested
Area (ha)
54,469.00
56,648

Gross
Production
(MT)
206,554.00
227,209.40
249,930.34
274,923.37
302,415.71
332,657.28

Gross
Production
(MT)
206,554.00
237,537.10
261,290.81
287,419.89
316,161.88
347,778.07

Gross
Production
(MT)
206,554.00
247,864.80
272,651.28
299,916.41
329,908.05
362,898.85

Seed Usage
(MT) (75Kg/ha)
4,085.18
4,248.58
4,418.53
4,595.27
4,779.08
4,970.24

Feeds/
Wastage
(MT) (6.5% of
total
Production)
13,426.0
14,768.6
16,245.5
17,870.0
19,657.0
21,622.7

Net
Production
(MT)
189,042.82
208,192.21
229,266.34
252,458.09
277,979.61
306,064.32

Rice Milling
Recovery
(65%)
122,877.83
135,324.93
149,023.12
164,097.76
180,686.75
198,941.81

SCENARIO 3: 15% increase in gross production

Feeds/
Net
Rice Milling
Wastage
Seed Usage
Recovery
(MT) (6.5% of Production
(MT) (75Kg/ha)
(MT)
(65%)
total
Production)
4,085.18
13,426.0
189,042.82
122,877.83
4,248.58
15,439.9
217,848.61
141,601.59
4,418.53
16,983.9
239,888.38
155,927.45
4,595.27
18,682.3
264,142.33
171,692.52
4,779.08
20,550.5
290,832.28
189,040.98
4,970.24
22,605.6
320,202.25
208,131.46

SCENARIO 4: 20% increase in gross production

Feeds/
Net
Rice Milling
Wastage
Seed Usage
Recovery
(MT) (6.5% of Production
(MT) (75Kg/ha)
(MT)
(65%)
total
Production)
4,085.18
13,426.0
189,042.82
122,877.83
4,248.58
16,111.2
227,505.01
147,878.25
4,418.53
17,722.3
250,510.42
162,831.77
4,595.27
19,494.6
275,826.58
179,287.27
4,779.08
21,444.0
303,684.95
197,395.22
4,970.24
23,588.4
334,340.19
217,321.12

SCENARIO 5: 25% increase in gross production

Feeds/
Gross
Net
Rice Milling
Wastage
Seed Usage
Production
Recovery
(MT) (6.5% of Production
(MT) (75Kg/ha)
(MT)
(MT)
(65%)
total
Production)
206,554.00
4,085.18
13,426.0
189,042.82
122,877.83
258,192.50
4,248.58
16,782.5
237,161.41
154,154.91

Population

2,009,752.00
2,049,947.04
2,090,945.98
2,132,764.90
2,175,420.20
2,218,928.60

Population

2,009,752.00
2,049,947.04
2,090,945.98
2,132,764.90
2,175,420.20
2,218,928.60

Population

2,009,752.00
2,049,947.04
2,090,945.98
2,132,764.90
2,175,420.20
2,218,928.60

Population

2,009,752.00
2,049,947.04

Per Capita
Consumption of
Rice (MT)
(115.492kg)
232,110
236,752
241,488
246,317
251,244
256,269

Per Capita
Consumption of
Rice (MT)
(115.492kg)
232,110
236,752
241,488
246,317
251,244
256,269

Per Capita
Consumption of
Rice (MT)
(115.492kg)
232,110
236,752
241,488
246,317
251,244
256,269

Per Capita
Consumption of
Rice (MT)
(115.492kg)
232,110
236,752

Surplus/ Deficit (MT)

(109,232)
(101,428)
(92,464)
(82,220)
(70,557)
(57,327)

Surplus/ Deficit (MT)

(109,232)
(95,151)
(85,560)
(74,625)
(62,203)
(48,137)

Surplus/ Deficit (MT)

(109,232)
(88,874)
(78,656)
(67,030)
(53,848)
(38,947)

Surplus/ Deficit (MT)

(109,232)
(82,598)

VARIANCE

4.22%
4.55%
4.91%
5.30%
5.71%

VARIANCE

6.87%
4.76%
5.13%
5.54%
5.97%

VARIANCE

9.52%
4.97%
5.36%
5.78%
6.23%

VARIANCE

12.17%
5.18%

2013
2014
2015
2016

Year

2011
2012
2013
2014
2015
2016

70.29%
75.87%
81.89%
88.39%

Target
Sufficiency
Level
52.94%
67.76%
73.15%
78.95%
85.22%
91.97%

58,914
61,270
63,721
66,270

Harvested
Area (ha)
54,469.00
56,648
58,914
61,270
63,721
66,270

284,011.75
312,412.93
343,654.22
378,019.64

Gross
Production
(MT)
206,554.00
268,520.20
295,372.22
324,909.44
357,400.39
393,140.42

4,418.53
4,595.27
4,779.08
4,970.24

18,460.8
20,306.8
22,337.5
24,571.3

261,132.46
287,510.82
316,537.62
348,478.12

169,736.10
186,882.03
205,749.45
226,510.78

SCENARIO 6: 30% increase in gross production

Feeds/
Net
Rice Milling
Wastage
Seed Usage
Recovery
(MT) (6.5% of Production
(MT) (75Kg/ha)
(MT)
(65%)
total
Production)
4,085.18
13,426.0
189,042.82
122,877.83
4,248.58
17,453.8
246,817.81
160,431.57
4,418.53
19,199.2
271,754.50
176,640.43
4,595.27
21,119.1
299,195.06
194,476.79
4,779.08
23,231.0
329,390.28
214,103.68
4,970.24
25,554.1
362,616.06
235,700.44

2,090,945.98
2,132,764.90
2,175,420.20
2,218,928.60

Population

2,009,752.00
2,049,947.04
2,090,945.98
2,132,764.90
2,175,420.20
2,218,928.60

SUMMARY

YEAR
2011
2012
2013
2014
2015
2016

5%
52.94%
54.51%
56.12%
57.78%
59.50%
61.26%

SUFFICIENCY LEVEL SCENARIOS

PERCENTAGE INCREASE IN PRODUCTION
10%
15%
20%
25%
52.94%
52.94%
52.94%
52.94%
57.16%
59.81%
62.46%
65.11%
61.71%
64.57%
67.43%
70.29%
66.62%
69.70%
72.79%
75.87%
71.92%
75.24%
78.57%
81.89%
77.63%
81.22%
84.80%
88.39%

30%
Average
Variance
52.94%
52.94%
67.76%
61.14%
73.15%
65.54%
78.95%
70.29%
85.22%
75.39%
91.97%
80.88%

8.20%
4.41%
4.74%
5.10%
5.49%

241,488
246,317
251,244
256,269

Per Capita
Consumption of
Rice (MT)
(115.492kg)
232,110
236,752
241,488
246,317
251,244
256,269

(71,751)
(59,435)
(45,494)
(29,758)

Surplus/ Deficit (MT)

(109,232)
(76,321)
(64,847)
(51,840)
(37,140)
(20,568)

5.58%
6.02%
6.50%

VARIANCE

14.82%
5.38%
5.81%
6.26%
6.76%

Summary

TARGET MARKET

RICE CROP
-Irrigated
-Rainfed
-Upland
Total

Assumed Target Sales

Market Demand
Hectares
Farmers

AREA (ha)
323,643.28
106,482.35
4,978.81
435,104.44

NO. OF FARMERS
208,904.00
75,734.00
1,525.00
286,163.00

5%

435,104
286,163

5% of the Market Qty or Freq of Yield

21,755.22
65,266
14,308.00

Target Market

Total Farmers
Target Market
Difference

TARGET MARKET

Will Continue using Chemical

Will UseFertilizer
Probiotics
271,855
14,308

Market Demand
Total Rice Area
10% Target

435,104
43,510.44

TOTAL PRODUCTION
(MT)
AVERAGE YIELD/HA
1,741,195.02
5.4
497,652.99
4.7
3,035.73
2,241,883.74
10.10

2,610,626.64

286,163
14,308
271,855

Price / Gallon
325

Revenue/Annum
21,211,341

# of Gallons
65,266

PRICE STUDY
DIRECT MATERIALS BREAKDOWN
PROBIOTICS

COST / 1000 LITERS

Unit
Unit Cost

Quantity

Mollasses
Water (potable)
Yeast
Carabao Milo
Various Leaves
Brown Sugar

33
933
33
33
6,666
33

kilo
liters
tbsp
liter
grams
kilo

466.62
224.98
66.66
1,666.50
166.65
1,333.20

3,924.61

Total Cost

Cost/liter

PRICING

DIRECT MATERIALS (5 gallons)

INDIRECT MATERIALS
Plastic Container
Label
TOTAL MATERIALS
DIRECT LABOR
Helper
Chemist
OVERHEADS
TOTAL UNIT COST
MARK-UP PRICE
TOTAL PRICE

0.35
0.33
5.85

% of Price

Gallon / Hectares

Cost/Liter
0.47
0.22
0.07
1.67
0.17
1.33
3.92

% of Price

5 Gallon /
% of Price
5 Hectares

3.92

4%

14.84

5%

74.18

5%

10.00
3.00
16.92
0.68

10%
3%
17%
1%

50.00
3.00
67.84
0.68

15%
1%
21%
0%

100.00
3.00
177.18
0.68

7%
0%
12%
0%

5.85
23.46

6%
23%

5.85
74.37

2%
23%

5.85
183.71

0%
12%

76.54
100.00

77%

253.72
328.09

77%

1,336.20
1,519.91

88%

PRICE SUMMARY
1 LITER
1 GALLON
5 GALLONS

TARGET PRICE
100.00
328.09
1,519.91

CONV
3.78
5

Total Price
378.00
1,640.45

SAVINGS
in PHP
in %age
49.91
120.54

0.132035
0.073481

HECTARE
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50
52
54
56
58
60
62
64
66
68
70
72
74
76
78
80

Probiotics
in liters
in gallons
8
2
15
4
23
6
30
8
38
10
45
12
53
14
60
16
68
18
76
20
83
22
91
24
98
26
106
28
113
30
121
32
129
34
136
36
144
38
151
40
159
42
166
44
174
46
181
48
189
50
197
52
204
54
212
56
219
58
227
60
234
62
242
64
249
66
257
68
265
70
272
72
280
74
287
76
295
78
302
80

Organic Fertilizer with Pro Biotics

in Bags
in Sacks
in kilos
80
160
8,000
160
320
16,000
240
480
24,000
320
640
32,000
400
800
40,000
480
960
48,000
560
1,120
56,000
640
1,280
64,000
720
1,440
72,000
800
1,600
80,000
880
1,760
88,000
960
1,920
96,000
1,040
2,080
104,000
1,120
2,240
112,000
1,200
2,400
120,000
1,280
2,560
128,000
1,360
2,720
136,000
1,440
2,880
144,000
1,520
3,040
152,000
1,600
3,200
160,000
1,680
3,360
168,000
1,760
3,520
176,000
1,840
3,680
184,000
1,920
3,840
192,000
2,000
4,000
200,000
2,080
4,160
208,000
2,160
4,320
216,000
2,240
4,480
224,000
2,320
4,640
232,000
2,400
4,800
240,000
2,480
4,960
248,000
2,560
5,120
256,000
2,640
5,280
264,000
2,720
5,440
272,000
2,800
5,600
280,000
2,880
5,760
288,000
2,960
5,920
296,000
3,040
6,080
304,000
3,120
6,240
312,000
3,200
6,400
320,000

Total Production/annum
in liters
in gallons
23
6
45
12
68
18
91
24
113
30
136
36
159
42
181
48
204
54
227
60
249
66
272
72
295
78
318
84
340
90
363
96
386
102
408
108
431
114
454
120
476
126
499
132
522
138
544
144
567
150
590
156
612
162
635
168
658
174
680
180
703
186
726
192
748
198
771
204
794
210
816
216
839
222
862
228
885
234
907
240

CONVERSION TABLE
QTY
UNITS
1
GALLON
1
SACK
1
BAG
1
SACK
1
HECTARES
1
KILO
3
harvest per year
5
GALLON CONTAINER

QTY
UNITS
= 3.78 LITERS
18.9
=
2 BAGS
=
25 KILOS
=
50 KILOS
=
40 BAGS of ORGANIC FERTILIZER
=
1 LITER
=
1 year
= 18.9 LITERS

GS of ORGANIC FERTILIZER

PRODUCTION AND REVENUE PROJECTION

NORMAL CAPACITY
Container

Liters/Day

Days/Week

Weeks/Month

Monthly Production

Months/Year

1000

20,000

12

Annual
Production/Liter
240,000.00

Annual
Annual Production/
Production/Gallon
5 Gallon
63,492.00

YEAR 1
120,000
64,000
56,000
4,759,725

YEAR 2
240,000
88,000
152,000
6,544,622

YEAR 3
240,000
64,000
176,000
4,759,725

YEAR 4
240,000
40,000
200,000
2,974,828

YEAR 5
240,000
40,000
200,000
2,974,828

VOLUME (in Liters)

VOLUME (in Gallons)
PRICE (per Gallon)
TOTAL REVENUE
Total Revenue Assumption

YEAR 1
56,000
14,815
328
4,860,604
3,888,483

YEAR 2
152,000
40,212
328
13,193,068
11,873,761

YEAR 3
176,000
46,561
328
15,276,184
15,276,184

YEAR 4
200,000
52,910
328
17,359,300
17,359,300

YEAR 5
200,000
52,910
328
17,359,300
17,359,300

14,815
74.37
1,101,788

40,212
74.37
2,990,568

46,561
74.37
3,462,763

52,910
74.37
3,934,958

52,910
74.37
3,934,958

4,860,604
972,121
3,888,483

13,193,068
2,638,614
10,554,455

15,276,184
3,055,237
12,220,947

17,359,300
3,471,860
13,887,440

17,359,300
3,471,860
13,887,440

COST OF GOODS SOLD

VOLUME
COST OF GOODS SOLD
TOTAL REVENUE

VOLUME DISCOUNT
REVENUE
Discount at 20%
TOTAL REVENUE

20%

YEAR 2

YEAR 3

YEAR 4

YEAR 5

120,000.00

240,000.00

240,000.00

240,000.00

240,000.00

Note:
On the 1st Year, the company shall have 2 months fermentation period
On the 1st Year, the company shall have 1 cycle pilot testing (4 months)
On the 1st Year, the company shall start selling on it's 6 months.

PROJECTED REVENUE

VOLUME
INVENTORY IN UNITS
TOTAL VOLUME
INVENTORY IN PHP

12,698.00

YEAR 1

54,469
21,164.00
0.39
33,305.00

30989
12,041
39%
18,948

10,582.00
34%

OPERATING EXPENSES SCHEDULE

MANPOWER SALARIES AND WAGES
Designation
General Manager
Accounting
Biologist
Grand Total

Monthly Salary
50,000
25,000
35,000

QTY
1
1
1

Total Salary
50,000
25,000
35,000
110,000

Employee Benefits
2,465
1,965
2,165
6,595

Total
Salaries and Wages
52,465
26,965
37,165
116,595

YEAR 1
629,580
323,580
445,980
1,399,140

4%
YEAR 2
654,763
336,523
463,819
1,455,106

YEAR 1
120,000

4%
YEAR 2
124,800

4%
YEAR 3
129,792

4%
YEAR 4
134,984

4%
YEAR 5
140,383

YEAR 2

YEAR 3

YEAR 4

YEAR 5

4%
YEAR 3
680,954
349,984
482,372
1,513,310

Note:
Helper Salaries is based on National Wage Board as of August 2012
Provision for increase is 4% based on inflation rate

PROVISIONS FOR REPAIRS AND MAINTENANCE

Provisions for Repairs and Maintenance

MARKETING EXPENSES
Pilot Testing
Flyers
Posters/Streamers
Info-Drive (Seminar)
TOTAL MARKETING EXPENSES

QTY
7
10000
1000
10

Amount
50,000.00
2.00
20.00
40,000.00

YEAR 1
350,000
20,000
20,000
400,000
790,000

Amount
2599
1500

YEAR 1
62,376
162,000
224,376

4%
YEAR 2
64,871
168,480
233,351

4%
YEAR 3
67,466
175,219
242,685

4%
YEAR 4
70,165
182,228
252,392

4%
YEAR 5
72,971
189,517
262,488

YEAR 1
30,000
30,000

4%
YEAR 2
31,200
31,200

4%
YEAR 3
32,448
32,448

4%
YEAR 4
33,746
33,746

4%
YEAR 5
35,096
35,096

4%
YEAR 2
1,138
4,493
2,097
3,900

4%
YEAR 3
1,184
4,673
2,181
4,056

4%
YEAR 4
1,231
4,859
2,268
4,218

20,000
400,000
420,000

5,000
400,000
405,000

5,000
400,000
405,000

5,000
400,000
405,000

PROVISIONS FOR COMMUNICATION EXPENSE

Telephone with Internet

Mobile Phone
TOTAL COMMUNICATIONS EXPENSE

QTY
2
9

PROVISION FOR PRINTING AND OFFICE SUPPLIES

Provisions for Printing and Office Supplies
TOTAL PRINTING AND OFFICE SUPPLIES

PERSONAL PROTECTIVE EQUIPMENT

MATERIALS
FACE MASK
SAFETY GOGGLES
DUST MASK
EAR PLUGS

QTY
60
60
60
60

UNIT COST
1.52
72.00
2.80
62.50

TOTAL
91.20
4,320.00
168.00
3,750.00

YEAR 1
1,094
4,320
2,016
3,750

4%
YEAR 5
1,280
5,054
2,358
4,387

4%
YEAR 4
708,192
363,983
501,667
1,573,842

4%
YEAR 5
736,520
378,543
521,734
1,636,796

Designation
General Manager
Accounting
Biologist
Grand Total

WORK CLOTHES
SAFETY SHOES
SAFETY HELMET
GLOVES
GRAND TOTAL

UTILITIES EXPENSE
Water
Electricity
TOTAL UTILITIES EXPENSE

10
10
10
60

1
1

500.00
750.00
160.00
5.00

5,000.00
15,000.00

5,000.00
7,500.00
1,600.00
300.00

5,000.00
15,000.00

60,000
7,500
19,200
3,600
101,480

62,400
7,800
19,968
3,744
105,540

64,896
8,112
20,767
3,894
109,761

67,492
8,436
21,597
4,050
114,152

70,192
8,774
22,461
4,211
118,718

YEAR 1
60,000
180,000
240,000

4%
YEAR 2
62,400
187,200
249,600

4%
YEAR 3
64,896
194,688
259,584

4%
YEAR 4
67,492
202,476
269,967

4%
YEAR 5
70,192
210,575
280,766

PROVISIONS FOR INSURANCE EXPENSE

Provisions for Insurance Expense
TOTAL PROVISIONS FOR INSURANCE EXPENSE

YEAR 1
30,000
30,000

0%
YEAR 2
30,000
30,000

0%
YEAR 3
30,000
30,000

0%
YEAR 4
30,000
30,000

0%
YEAR 5
30,000
30,000

PROVISIONS FOR TRANSPORATION EXPENSE

Provisions for Transporation Expense
TOTAL PROVISIONS FOR INSURANCE EXPENSE

YEAR 1
900,000
900,000

4%
YEAR 2
936,000
936,000

4%
YEAR 3
973,440
973,440

4%
YEAR 4
1,012,378
1,012,378

4%
YEAR 5
1,052,873
1,052,873

PROVISIONS FOR MISCELLANEOUS EXPENSE

Provisions for Miscelleaneous Expenses
TOTAL PROVISIONS FOR MISCELLANEOUS EXPENSE

YEAR 1
25,000
25,000

4%
YEAR 2
26,000
26,000

4%
YEAR 3
27,040
27,040

4%
YEAR 4
28,122
28,122

4%
YEAR 5
29,246
29,246

PROVISIONS FOR TAXES AND LICENSES

Provisions for Taxes and Licenses
TOTAL PROVISIONS FOR TAXES AND LICENSES

YEAR 1
100,000
100,000

4%
YEAR 2
104,000
104,000

4%
YEAR 3
108,160
108,160

4%
YEAR 4
112,486
112,486

4%
YEAR 5
116,986
116,986

RECEIVABLES
Assumed 10% Receivables with 30-days Terms
Total Receivables

YEAR 1
486,060
486,060

YEAR 2
1,319,307
1,319,307

YEAR 3
1,527,618
1,527,618

YEAR 4
1,735,930
1,735,930

YEAR 5
1,735,930
1,735,930

Note:
Gasoline @ 100/full tank of Motor
Provision for increase based on inflation rate

SSS
1,090
1,090
1,090

EMPLOYERS CONTRIBUTION
PHILHEALTH
PAG-IBIG
MONTHLY
375
1,000
2,465
375
500
1,965
375
700
2,165
-

ANNUAL
29,580
23,580
25,980
-

CAPITAL EXPENDITURES AND DEPRECIATION SCHEDULE

ACCOUNTS
Equipment
Mixer
Container ( 1,000 liters capacity)
Measuring Equipment
Total Equipment Cost
Motor Vehicles
Tricycle
L300
Total Motor Vehicles
Improvement Cost
Office Space
Mixing Area
Storage
Total Improvement Cost
Furnitures and Fixtures
Table
Chairs
Computer
Printer with scanner
Cabinets
Air conditioner
Electric Fan
Facsimile
Total Furnitures and Fixtures
Communications
Telephone with Internet
Total Communications Expense
GRAND TOTAL
PERMITS AND LICENSES
WORKING CAPITAL
TOTAL PROJECT COST

QTY
2
1
2

UNIT COST

TOTAL

LIFE

82,860
6,463
2,500
91,823

165,720
6,463
5,000
177,183

5
5
3

1
1

50,000
800,000
850,000

50,000
800,000
850,000

1
1
1

50,000
30,000
30,000
110,000

5
5
1
1
2
1
3
1

Annual

YEAR 1

DEPRECIATION SCHEDULE
YEAR 2
YEAR 3
YEAR 4

YEAR 5

33,144
1,293
1,667
36,103

33,144
1,293
1,667
36,103

33,144
1,293
1,667
36,103

33,144
1,293
1,667
36,103

33,144
1,293

33,144
1,293

34,437

34,437

3
5

16,667
160,000
176,667

16,667
160,000
176,667

16,667
160,000
176,667

16,667
160,000
176,667

160,000
160,000

160,000
160,000

50,000
30,000
30,000
110,000

10
10
10

5,000
3,000
3,000
11,000

5,000
3,000
3,000
11,000

5,000
3,000
3,000
11,000

5,000
3,000
3,000
11,000

5,000
3,000
3,000
11,000

5,000
3,000
3,000
11,000

750
325
16,450
7,002
3,000
42,896
1,598
5,688
77,709

3,750
1,625
16,450
7,002
6,000
42,896
4,794
5,688
88,205

3
3
3
3
3
3
3
3

1,250
542
5,483
2,334
2,000
14,299
1,598
1,896
29,402

1,250
542
5,483
2,334
2,000
14,299
1,598
1,896
29,402

1,250
542
5,483
2,334
2,000
14,299
1,598
1,896
29,402

1,250
542
5,483
2,334
2,000
14,299
1,598
1,896
29,402

2,599
2,599
1,132,131

5,198
5,198
1,230,586

1,733
1,733
254,904

1,733
1,733
254,904

1,733
1,733
254,904

1,733
1,733
254,904

205,437

205,437

100,000
767,869
2,000,000

100,000
2,269,414
3,600,000

SUMMARY
Equipment
Motor Vehicles
Improvement Cost
Furnitures and Fixtures
Communications
Total

UNIT COST
91,823
850,000
110,000
77,709
2,599
1,132,131

TOTAL
177,183
850,000
110,000
88,205
5,198
1,230,586

Annual
36,103
176,667
11,000
29,402
1,733
254,904

YEAR 1
36,103
176,667
11,000
29,402
1,733
254,904

DEPRECIATION TABLE
YEAR 2
YEAR 3
YEAR 4
36,103
36,103
34,437
176,667
176,667
160,000
11,000
11,000
11,000
29,402
29,402
1,733
1,733
254,904
254,904
205,437

YEAR 5
34,437
160,000
11,000
205,437

ECO GREEN FERTILIZER

INCOME STATEMENT

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

3,888,483
972,121
2,916,362
1,101,788
1,814,574

11,873,761
2,638,614
9,235,148
2,990,568
6,244,580

15,276,184
3,055,237
12,220,947
3,462,763
8,758,184

17,359,300
3,471,860
13,887,440
3,934,958
9,952,482

17,359,300
3,471,860
13,887,440
3,934,958
9,952,482

Salaries, Wages and other Benefits

Personal Protective Equipment
Repairs and Maintenance
Depreciation Expense
Taxes and Licenses
Marketing Expense
Communications Expense
Printing and Office Supplies
Utilities Expense
Insurance Expense
Transportation Expense
Miscellaneous Expense
TOTAL OPERATING EXPENSES

1,399,140
101,480
120,000
254,904
100,000
790,000
224,376
30,000
240,000
30,000
900,000
25,000
4,214,901

1,455,106
105,540
124,800
254,904
104,000
420,000
233,351
31,200
249,600
30,000
936,000
26,000
3,970,500

1,513,310
109,761
129,792
254,904
108,160
405,000
242,685
32,448
259,584
30,000
973,440
27,040
4,086,124

1,573,842
114,152
134,984
205,437
112,486
405,000
252,392
33,746
269,967
30,000
1,012,378
28,122
4,172,506

1,636,796
118,718
140,383
205,437
116,986
405,000
262,488
35,096
280,766
30,000
1,052,873
29,246
4,313,788

NET INCOME BEFORE TAX

Less Tax (Maximum of 32%)

(2,400,326)

2,274,079
727,705

4,672,060
1,495,059

5,779,977
1,849,593

5,638,694
1,804,382

NET INCOME/LOSS

(2,400,326)

1,546,374

3,177,001

3,930,384

3,834,312

GROSS REVENUE
Sales
Less Rebates and Discounts
Net Sales
Less Cost of Good Sold
Gross Profit
OPERATING EXPENSES

ECO GREEN FERTILIZER

BALANCE SHEET
ASSETS:
CASH
ACCOUNTS RECEIVABLES
INVENTORIES
TOTAL CURRENT ASSETS
PROPERTY AND EQUIPMENT
COMMUNICATION/EQUIPMENT
LESS:ACCUMMULATED DEPRECIATION
MOTOR VEHICLES
LESS:ACCUMMULATED DEPRECIATION
IMPROVEMENT COST
LESS:AMORTIZATION
NET PROPERTY AND EQUIPMENT
TOTAL ASSETS
LIABILITIES

YEAR 1

YEAR 2

(5,021,794)
486,060
4,759,725
223,992

(5,838,659)
1,319,307
6,544,622
2,025,270

(830,169)
1,527,618
4,759,725
5,457,175

270,586
(67,238)
850,000
(176,667)
110,000
(11,000)
975,682

270,586
(134,475)
850,000
(353,333)
110,000
(22,000)
720,777

270,586
(201,713)
850,000
(530,000)
110,000
(33,000)
465,873

1,199,673
-

YEAR 3

2,746,047
-

YEAR 4

5,923,048
-

YEAR 5

4,882,237
1,735,930
2,974,828
9,592,996

270,586
(236,149)
850,000
(690,000)
110,000
(44,000)
260,437
9,853,432
-

8,921,986
1,735,930
2,974,828
13,632,744

270,586
(270,586)
850,000
(850,000)
110,000
(55,000)
55,000
13,687,744
-

CAPITAL
BEGINNING
ADD: NET INCOME
ENDING CAPITAL

3,600,000
(2,400,326)
1,199,673

3,600,000
(2,400,326)
1,546,374
2,746,047

3,600,000
(853,953)
3,177,001
5,923,048

3,600,000
2,323,048
3,930,384
9,853,432

3,600,000
6,253,432
3,834,312
13,687,744

TOTAL LIABILITIES AND CAPITAL

1,199,673

2,746,047

5,923,048

9,853,432

13,687,744

Assumptions:
10% year end receivable
2 months year end inventory level

ECO GREEN FERTILIZER

STATEMENT OF CASH FLOW

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

CASH FLOW FROM OPERATING ACTIVITIES

NET INCOME AFTER TAX

(2,400,326)

1,546,374

3,177,001

3,930,384

3,834,312

DEDUCT/ADD BACK:
INCREASE IN ACCOUNTS RECEIVABLE
INCREASE IN INVENTORY
DEPRECIATION EXPENSE
NET CASH INFLOW FROM OPERATING ACTIVITIES

(486,060)
(4,759,725)
254,904
(7,391,208)

(833,246)
(1,784,897)
254,904
(816,865)

(208,312)
1,784,897
254,904
5,008,490

(208,312)
1,784,897
205,437
5,712,406

205,437
4,039,748

CASH FLOW FROM INVESTING ACTIVITIES

PURCHASE OF EQUIPMENT
PURCHASE OF MOTOR VEHICLE
IMPROVEMENT COST
PURCHASE OF FURN AND FIXTURES
PURCHASE OF COMMUNICATION EQUIPMENT
CASH OUTFLOW FROM INVESTING ACTIVITIES

(177,183)
(850,000)
(110,000)
(88,205)
(5,198)
(1,230,586)

CASH INFLOW FROM FINANCING ACTIVITIES

3,600,000

NET CASH INFLOW

ADD: CASH BEGINNING

(5,021,794)
-

(816,865)
(5,021,794)

5,008,490
(5,838,659)

ENDING CASH BALANCE

(5,021,794)

(5,838,659)

(830,169)

5,712,406
(830,169)

4,039,748
4,882,237

4,882,237

8,921,986

COST OF PRODUCTION IN TERMS OF FERTILIZER USE

Type of Fertilizer Used
Organic+Synthetic Organic+Probiotic Variance
Fertilizers Cost per Hectare
4,472
1,341
3,131

*Notes
Data of Organic Vs Synthetic Fertilizer Cost Based on Bureau of Agricultural Statistics
2008
..Fertilizer Paid in Cash
..Fertilizer Paid in Kind
..Fertilizer
TOTAL Fertilizer Cost

4,784
-

2009
4,453
61
175

2010
3,791
48
105

4,784

4,689

3,944

ER USE
Percentage Savings
70%

AVERAGE
4,343
36
93
4,472

Expenses
Seeds Paid
Fertilizer Paid
Pesticides Paid
Hired Labor Paid
Harvester's Share
Thresher's Share
Landowner's Share
Rentals Paid
Fuel and Oil
Interest Payment on Crop Loan Paid
Irrigation Fee Paid
Food Expense
Land Tax
Others Paid
Repairs
Depreciation
Interest on Capital
Total Cost
Cost Per Kilogram in Pesos
Yield Per Hectare in Kilograms
Farmgate Price in Pesos Per Kilogram

COMPARATIVE ANALYSIS ON FARMERS INCOME

Costs
Current Using Synthetic
1,444.00
3,944.00
1,979.00
13,069.00
4,741.00
3,927.00
3,798.00
1,669.00
560.00
84.00
457.00
326.00
80.00
778.00
1,120.00
538.00
2,243.00
40,757.00
10.88
3,747
14.02

Farmer's Revenue per hectare

Less: Costs
Net Income
*NOTES
Current Costs From Bureau of Agricultural Statistics
Assumed 5% Increase in Yield

52,532.94
40,757.00
11,775.94

Table shows that based on cost of production per kilogram in pesos, it is lower by P1.22 which gives savings to eac
amounting to P 2,760.80. Net income results an additional income amounting to P5,348 per hectare.

FARMERS INCOME
Costs
Using Probiotics
1,444.00
1,183.20
1,979.00
13,069.00
4,741.00
3,927.00
3,798.00
1,669.00
560.00
84.00
457.00
326.00
80.00
778.00
1,120.00
538.00
2,243.00
37,996.20
9.66
3,934
14.02

Y
VARIANCE

55,159.59
37,996.20
17,163.39

lower by P1.22 which gives savings to each farmer

nting to P5,348 per hectare.

(2,760.80)
(2,760.80)
(1.22)
187.35
2,626.65
2,760.80
5,387.45

Land Area (has)

1
2
3
4
5

74.94

0.457496

YIELD OF HARVEST
Current Using Synthetic
Using Probiotics
in Kilo
in Sacks
in Kilo
in Sacks
3,747
75
3,934
79
7,494
150
7,869
157
11,241
225
11,803
236
14,988
300
15,737
315
18,735
375
19,672
393

VARIANCE
in Kilo
in Sacks
187
4
375
7
562
11
749
15
937
19

BREAK EVEN ANALYSIS

in units
in Pesos

YEAR1
55,068
5,506,816

YEAR2
51,875
5,187,505

YEAR3
53,386
5,338,568

RETURN ON INVESTMENT
Rate
RATE (CUMMULATIVE)

YEAR 1
-67%
-67%

YEAR 2
43%
-24%

YEAR 3
88%
131%

PAYBACK PERIOD
(in years)
(in months, cummulative)

YEAR 1

YEAR 2
0.43
(3)

YEAR 3
0.88
8

YEAR 1
(2,400,326)
67,238
(2,333,089)
35%

YEAR 2
1,546,374
134,475
1,680,849
35%

YEAR 3
3,177,001
201,713
3,378,713
35%

(1,728,214)

1,245,073

2,502,751

SCENARIO 1: ROR BASED ON 1999 STUDIES

NET PRESENT VALUE
NET INCOME
ACCUMULATED DEPRECIATION
TOTAL
RATE OF RETURN
NPV
NPV COMPUTATIONS
PRESENT VALUE OF THE INFLOW
CAPITALIZATION
COMPUTED NPV

(0.67)
(8)

8,146,595.67
(3,599,999.75)
4,546,595.92

Interpretation :
PROFITABILITY INDEX
PRESENT VALUE OF THE INFLOW
CAPITALIZATION
PROFITABILITY INDEX

4,546,595.92
3,599,999.75
1.26

This means that every invested present value peso yields P 5.26 in present value inflows.

NET PRESENT VALUE

NET INCOME
ACCUMULATED DEPRECIATION
TOTAL
RATE OF RETURN

YEAR 1
(2,400,326.39)
67,237.51
(2,333,088.88)
33%

YEAR 2
1,546,373.85
134,475.01
1,680,848.86
33%

YEAR 3
3,177,000.82
201,712.52
3,378,713.34
33%

NPV
NPV COMPUTATIONS
PRESENT VALUE OF THE INFLOW
CAPITALIZATION
COMPUTED NPV

(1,754,202.16)

1,263,796.14

2,540,385.97

8,269,100.87
(2,000,000.00)
6,269,100.87

Interpretation :
PROFITABILITY INDEX
PRESENT VALUE OF THE INFLOW
CAPITALIZATION
PROFITABILITY INDEX

6,269,100.87
2,000,000.00
3.13

This means that every invested present value peso yields P 6.06 in present value inflows

SCENARIO 2: ASSUMED TARGET RATE OF RETURN @ 20% BASED ON FOREIGN STUDY

NET PRESENT VALUE
YEAR 1
YEAR 2
YEAR 3
NET INCOME
(2,400,326.39)
1,546,373.85
3,177,000.82
ACCUMULATED DEPRECIATION
67,237.51
134,475.01
201,712.52
TOTAL
(2,333,088.88)
1,680,848.86
3,378,713.34
RATE OF RETURN
20%
20%
20%
NPV
NPV COMPUTATIONS
PRESENT VALUE OF THE INFLOW
CAPITALIZATION
COMPUTED NPV

(1,944,240.73)

1,400,707.39

2,815,594.45

9,164,920.13
(2,000,000.00)
7,164,920.13

Interpretation :
PROFITABILITY INDEX
PRESENT VALUE OF THE INFLOW
CAPITALIZATION
PROFITABILITY INDEX

7,164,920.13
2,000,000.00
3.58

This means that every invested present value peso yields P 6.38 in present value inflows

YEAR4
54,514
5,451,427

YEAR5
56,360
5,636,014

YEAR 4
109%
197%

YEAR 5
107%
216%

YEAR 4
1.09
21

YEAR 5
1.07
34

YEAR 4
3,930,384
236,149
4,166,533
35%

YEAR 5
3,834,312
270,586
4,104,898
35%

3,086,321

3,040,665

YEAR 4
3,930,384.12
236,149.13
4,166,533.25
33%

YEAR 5
3,834,311.84
270,585.75
4,104,897.59
33%

63202
6320197

fixed cost/(unit price-variable cost)

INVESTMENT

3,600,000

(3,600,000)

INVESTMENT

2,000,000.00

3,132,731.77

3,086,389.17

(2,000,000.00)

YEAR 4
3,930,384.12
236,149.13
4,166,533.25
20%

YEAR 5
3,834,311.84
270,585.75
4,104,897.59
20%

INVESTMENT

3,472,111.04

3,420,747.99

(2,000,000.00)

2,000,000.00