CHAPTER I

INTRODUCTION
Dragon Fruit (Hylocereus undatus) production is gaining more and more
recognition as an important crop. It is a nutritious fruit with a variety of uses. The
fruit pulp can be eaten fresh and can be made into various valuable processed
products. The fruit possesses medicinal properties: it is known to prevent colon
cancer and diabetes, neutralizes toxic substances such as heavy metals, reduce
cholesterol and high blood pressure. It is also reported to control high sugar levels,
prevent cancer and bleeding, and promote dental health. It is rich in vitamin C,
phosphorous and calcium which help to develop strong bones, teeth and skin. The
fruit is considered a health fruit(ICBF, 1992; Morton,1987).
A Dragon Fruit Production Enterprise has been demonstrated to provide
viable source of food, income and employment to growers locally and abroad. It
could be an asset to backyard growers as well as entrepreneurs of medium and
large scale plantations. It is a fast return perennial fruit crop with production in the
second year after planting, and full production within five years. It was also noted to
sustain production up to twenty years provided desirable cultural management
practices are applied. Although the initial investment is relatively high, profit is
substantial and within 4-5 years, about 4-5 million pesos could be earned per
hectare.
Dragon fruit is an ideal crop for dry areas but differs from other cacti species
which are of dessert origin because it requires sufficient rainfall ranging from 1.730
2.540 mm per year to sustain its productivity. It can grow in varied types of soil
provided the plantation area is well drained.
On these premises, considering the climatic condition of Pangasinan province,
it can be ideal for dragon fruit production. Besides, according to observation on the
agro-physical characteristics of Dragon Fruit, the level of risk in producing the crop
is lesser and to some extent more tolerant to adverse weather conditions as
compared to the production of other high-value commercial crops

Here in Pangasinan, the products supply is still very limited despite the high
market demand. This may be due to the plants seasonal harvesting characteristic
and the few dragon fruit growers in the province. In response to the current
markets needs, our company is studying various factors that will help in forming
our Dragon Fruit Farm.

CHAPTER II
PROJECT SUMMARY

2.1 Business Logo and Description

2.2 Name of the Firm

Mission
Our

mission

is

to

grow

profitably

through innovation

and

operational

excellence in supplying fresh produce. In addition, we want to provide our

customers with a great farm experience and exceptional products, in a friendly,
clean, safe environment, with service that exceeds their expectations.
In pursuing these mission, we will deliver value:

to customers, by delivering fresh produce solutions with outstanding quality

and great service, and continuously developing long-lasting relationships

to staf, by offering a stimulating environment that encourages innovation

and knowledge sharing

Vision
In a world with limited natural resources and a growing population, * aims to play a
leading role in supplying first-rate products, providing first-class service and
developing the most efficient and sustainable fresh produce solutions, in close
cooperation with its customers and suppliers.
Core Values
INTEGRITY - We practice honesty, fairness, and respect in all aspects of our
business.
CUSTOMER SERVICE - Customers are the most important people in our company.
We will provide them with prompt, cheerful, and attentive service.
QUALITY To ensure that we provide our customers with a superior product for the
most value, from farm to fork we are involved in every aspect of procurement and
distribution of our produce.
TEAM - We listen to and respond to our employees needs and the needs of their
families. We strive to provide a safe and clean work environment that will
contribute to the personal growth and security of our team members.

2.3 Location and/ or Head Office

2.4 History
Dragon fruits are originally native to Mexico, and they were also transplanted
to Central America and to other parts of the world. According to Aztec literature,
Pitahaya fruits date back to the 13th century. This fruit is a highly nutritious and
healthy food that contains low level of fat and calories, vitamin C, phosphorus,
calcium, fiber and antioxidants. Dragon fruits are also called as Pitaya, Pitahaya, fire
dragon fruit, dragon pearl fruit, green dragon, or strawberry pear.
Dragon fruit first come to the Philippines in 1900 through trade and exchange
of goods with Spaniards. In the early 2000, Dragon Fruit farming is known to be

possible in the Philippines but still gaining popularity. Thus, in 2003, a technology
demonstration on dragon fruit production was established at the Central Experiment
Station (CES) of the Southern Mindanao Integrated Agricultural Research Center
(SMIARC) in Manambulan, Tugbok, Davao City. This Techno-demo farm was then
visited by many aspiring dragon fruit growers and some consumers interested in the
growing process of the fruit. With funding support from the Bureau of Agricultural
Research (BAR) through its Agribusiness Development Project (ADP), the technodemo farm aimed to:
1. showcase technology on the production of dragon fruit,
2. mass propagate and distribute to other regional research station or interested
growers, and
3. determine the economic value of dragon fruit.
In year 2007, Ilocos started to grow the said fruit and formed the Rare Eagles
Forest Marine and Agricultural Development or Refmad Dragon Fruit Farm.

And

after years of operation, the owner, Edita Aguinaldo is then called as dragon fruit
lady of the north. This dragon fruit plantation is currently the countrys leading
exporter and distributer in the Philippines. And now, this farm has expanded to 13hectare dragon fruit plantation in Paayas, Burgos, Ilocos Norte.
Currently, the fruit is also cultivated in East Asian and Southeast Asian
countries such as Cambodia, Thailand, Taiwan, Malaysia, Vietnam, Sri Lanka, the
Philippines, Indonesia, and more recently Bangladesh. They are also found
in Okinawa, Hawaii, Israel, northern Australia, southern China, and in Cyprus.
This growth of the dragon fruit agriculture sector still continues to boost
creating more opportunities to future dragon fruit plantation.

2.5 Industry Overview

2.6 Type of Organization

The type of organization is in the form of partnership. By the contract of
partnership, two or more persons bind themselves together to contribute money,
property, or industry to a common fund, with the intention of dividing the profits

among themselves. Kimberly B. Castro, Johanna Marie B. Corpuz, Oved B. Quinto

and Adrian Jim D. Vesquira will form the partnership. The capital that would be used
will come from all the combined assets of the partners.
* Dragon Fruit Farm will be registered in the Business Permit and Licensing
Office located at the Alaminos City Hall, Bureau of Internal Revenue (BIR),
Philhealth, Pag-ibig and in Social Security System (SSS).

2.7 Brief description of the project

* Dragon Fruit Farm is a dragon fruit plantation aimed to strengthen the
dragon fruit industry of the Philippines, especially in Pangasinan.
The company will also make some research that will further help and improve
the growing and production capacity of dragon fruits.
* Dragon Fruit Farm will be located at Alaminos City, Pangasinan where well
be growing our organic dragon fruits that will be distributed in Pangasinan market.
Regarding product distribution, we will be targeting different malls and super
markets within Pangasinan as a way of providing the market our best grown organic
dragon fruits. And will be supplying different export traders as our major customer.
* Dragon Fruit Farm will also be available for visit and tours to those who are
interested to learn about dragon fruits and its growing techniques.
The researchers of this business will compose the companys management
team. But due to lack of experience in actual farms, the company will employ
knowledgeable and experienced dragon fruit growers.
In order for the business to become successful, the proponents

also

considered some strategies to reach their goal; aside from profit generation, they
also considered their customers satisfaction.
General Objective of the Project

To
To
To
To

determine the form of the proposed business;

analyze the organization and management aspect of the business;
present the exact capitalization of the business;
identify requirements and qualification, duties, and responsibilities,

salaries and benefits of the business manpower; and

To clearly discuss the flow of authority and the policies that will serve as
guide of the entire business.

General Objective of the Business

Generally, the business aims to establish a Dragon Fruit Production Project for
income generation.
Specifically, it seeks to:
1. Establish Production area of Dragon Fruit in a multiple cropping schemes.
2. Pilot the utilization of sub-marginal areas for income generation and maximum
utilization of land resources.

2.8 Porters Five Forces Analysis

Supplier Power

Buyer Power

Threat of Substitute

Threat of New Entrants

Competitive Rivalry

2.9 Research and Methodology

Research

The proponents used different business-related books from libraries and

surfed from the internet to gather significant information regarding the business,
and other relevant information that can help the study.

CHAPTER III

MARKETING STUDY

3.1

Market Description

3.2

Target Customers

Demand

Supply

3.3

Demand Analysis

Historical Demand
Projected Demand
3.4

Supply Analysis

Historical Supply
Projected Supply
3.5

Demand- Supply Analysis

3.6

Competitors

3.7

Competitive Advantage

3.8

Marketing Strategies

Product
Price
Place
Promotion

3.9 SWOT Analysis

CHAPTER IV
TECHNICAL STUDY
4.1 Products
Our Products
All varieties of the dragon fruit plant are vine-like cactus which yields a
triangular cross section when cut perpendicular to the direction of growth. All three
varities of dragon fruit cactus flower at night, growing best in moderate climates.
Hylocereus undatus (Pitaya blanca or white-fleshed pitaya)

Has red-skinned fruit with white flesh. This is the most commonly seen "dragon

fruit".
Climbing cactus with large, scented, night blooming flowers
Fruit weighs 1 kg or more with light melon-like taste

Fruit has bright red skin, with translucent white flesh and tiny black seeds
With triangular cross-section of its stem and minimal spines

Hylocereus costaricensis (Pitaya roja or red-fleshed pitaya, also known

as Hylocereus polyrhizus)

Has red-skinned fruit with red flesh.

Fruit weighs up to 1 kg
With red skin, dark-red flesh which contains small black seeds
Stems have more spines

Hylocereus megalanthus (Pitaya amarilla or yellow pitaya, also known

as Selenicereus megalanthus)

Has yellow-skinned fruit with white flesh.

Smaller fruit with yellow skin and clear to white flesh containing edible black
seeds

Sweeter than red varieties

*Contains the heart tonic captine

* Dragon Fruit Farm will be growing organic Pitaya Roja and Pitaya Amarilla.
Our farm will not be growing Pitaya Blanca, which is the least sweet dragon fruit and
knowing that this is the most common of its kind which means this variety of dragon
fruit supplies larger percentage than others in the market. Also, our company wants
to maximize the production of the two latter types of the fruit because of its better
taste yet lesser availability in the market especially the yellow dragon fruit. Growing
dragon fruit using organic fertilizers makes the product healthier and avoid having
chemical contents present from dragon fruit grown using chemical-based fertilizers.

4.2 Production Process

A native plant from Central and South America, dragon fruit
(Hylocereussp ) or pitaya is gaining its popularity in the Philippine market.
The plant is adapted to tropical or arid climates with rainfall of 30-40 inch and
any kind of soil with organic matter.
The fruits with red or pink, leathery skin are eaten by spooning out the
flesh, or in slices. Fruits can be processed to juice, ice cream or wine. The
beautiful flowers, only blooming at night, are used for tea or aroma therapy.

Propagating Dragon fruit

Site Selection
Dragon fruit must be planted in an open field with direct exposure to sunlight.
It is not conducive to plant the crop in areas where rainfall is well distributed. Site
should be free draining with a sandy loam soil with a high organic content.

Ground Preparation
Rows or individual sites are mounded to 300 mm, poles should be no more
than 2 m long with 600mm in the ground.
Poles can be anything from concrete to PVC, (but treated timber should be
avoided) with a frame attached to the top to allow the plant to hang down.
The recommended planting distance is three meters between posts and four
meters between rows. Proper distance of planting is important since a narrower
spacing gives quicker production than larger spacing.
Red flesh pitaya prefers to grow on a trellis or fence line.
Planting Material
Dragon Fruit is propagated through seeds or cuttings. From seeds, it grow
well in a compost or potting soil mix even as a potted indoor plant. Dragon fruit
(Pitaya) cacti usually germinate between 11 and 14 days after shallow planting. As
they are cacti, overwatering is a concern for home growers. As their growth
continues, these climbing plants will find something to climb on, which can involve
putting aerial roots down from the branches in addition to the basal roots. Once the
plant reaches a mature 10 pounds in weight, the plant may flower.
From the cuttings, plant them in plastic bags for two months and transfer
them in an open field. Cuttings can be purchased from some local commercial
nurseries and pitaya growers. Seedlings are too variable for commercial production.

Irrigation
Water daily through the dry at a volume of 80 L/day, regular organic mulching
is strongly recommended.
Water stress can cause fruit splitting; slow shoot development, yellowing and
flower drop.

Under tree sprinklers with a 1 -1.5 m diameter wetting area to concentrate

water into root zone are suitable.

Nutrition
A combination of organic and complete fertilizer (14-14-14) and urea (46-00). Use more organic and more nitrogen. The ideal is to apply fertilizer every 3
months if possible or every six months. Use 2 kg of organic + 25 g urea + 75 g
complete fertilizer per plant.

Pests
Meat ants, ginger ants, and birds have been recorded as causing serious
damage to plants and fruit. Plants will need some form of netting to prevent bird
damage to fruit.

Diseases
A soft watery rot can occur after damage such as sunburn.

Pruning
Regularly prune them to obtain an open, manageable, and productive
umbrella shape canopy. Also, it is important to prune right after harvesting the
fruits. Regular pruning will induce new shoots for the next cropping season.

Harvest

After establishing the plant in the field, it would take around 26 months to
bear fruits. Harvest must be done 35-40 days after the flower opening.
Fruit can be harvested approximately 28 days after fruit set when there is a
colour change from green to 85% pink.
Fruit harvested with a red skin colour are generally larger and sweeter.

Post Harvest
Fruit will keep for two to three months in a cool room at 7-10C and 90-98%
relative humidity.

4.3 Suppliers

4.4 Business Location

Vicinity Map

Floor Plan

4.5 Business Process

4.6 Machinery and Equipment

4.7 Product Costs

4.8 Utilities Requirement

BIBLIOGRAPHY
http://www.mixph.com/dragon-fruit-growing-and-production/
http://www.pinoybisnes.com/agri-business/dragon-fruit-production-guide/
http://www.freshplaza.com/article/163577/Philippines-Farmers-off-season-dragonfruit-proves-a-hit
http://businessdiary.com.ph/7595/dragon-fruit-pitaya-production-guide/