FEASIBILITY STUDY – SUGARCANE PLANTATION

CHAPTER 1

Executive Summary of the Study

This chapter summarizes the project feasibility study as a whole. It

comprises the description about the business, general objectives of the business,

research and methodology, project summary, and definition of terms.

A. Name of the Business

The business proponents came up to “Saccharine Plantation” as the

business name. Saccharine implies excessively sweet or sentimental in which the sugar

symbolizes the fulfilled love but also greed. It also came from the word “Saccharum”

which is the genus where sugarcanes are included and classified as the tall perennial

grasses. On the other hand, plantation means an area on which crops like sugarcane

are planted especially for commercial purposes.

B. Location of the Business

Figure 1

Plantation Location

Saccharine Plantation will be located at Barangay San Isidro, Taysan,

Batangas. The proponents have chosen this area because it is accessible to the

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FEASIBILITY STUDY – SUGARCANE PLANTATION

sugarcane millers who will convert the sugarcane from our plantation into sugar. Even

though it is near to some other sugarcane plantation in the province, they assure that

there will be no competition between them because the sugarcane millers accept all the

sugarcane that the planters produced after their harvest.

C. Description of the Logo

Figure 2

Company Logo

The proponents came up with this logo because it represents the

sugarcane at the center which is the main crop in our plantation. Moreover, the five

tubes of sugarcane recognize the five members in our group who will jointly manage the

sugarcane plantation. They included also the leaves around the logo which being called

as laurel leaves that signifies a symbol of eternal glory, special achievement, success,

and triumph. As the color of the logo, they chose green as the primary color with a touch

of white and yellow as the background of sugarcane at the center of the logo. Green, the

color of life, renewal, nature, and energy, is associated with meanings of growth,

harmony, freshness, prosperity, and progress. On the other hand, the color yellow and

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FEASIBILITY STUDY – SUGARCANE PLANTATION

white symbolizes the sun and its rays which will help the sugarcane to grow by providing

sunlight and energy for the process of photosynthesis.

D. Brief Description of the Business

a. Business background

The business aims to provide fresh sugarcanes which the planters

harvested and offer it to the milling company by means of putting up a plantation situated

in Taysan, Batangas.

b. Industry Type

Saccharine sugarcane is an agricultural business because it yields

sugarcanes from the plantation. Agricultural business, also known as agribusiness, is the

farming, management, production, and marketing of agricultural commodities, such as

livestock and crops. The agricultural business field includes resource management,

farming, conservation, ranching, and sales.

c. Type of Organization

For the form of ownership, the proponents have chosen partnership. This

is a form of business organization between two or more individuals who share

management and profits. It also means more resources for the business, more invested

people can spread out management duties and partners can bring different experience

and skills in the organization.

E. General Objectives of the Business

The objectives of the business, Saccharine Plantation are:

 To have a significant and active role in the sugarcane industry.

 To provide fresh, locally grown sugarcanes.

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FEASIBILITY STUDY – SUGARCANE PLANTATION

 To provide jobs for the farmers in Taysan, Batangas in terms of planting, farming,

and cultivating the plantation.

 To be one of the best sugarcane plantations that produces good and fresh

sugarcanes in the province of Batangas.

 To be at full operations and production capacity to cover up its expenses and

investment.

F. Research Methodology

As qualitative type of feasibility study, we used demographics and

statistics from Securities and Exchange Commission, Sugar Regulatory Administration,

and other trusted sources of data. We translated and analyzed the data we gathered

from our individual researches and identify the specific population of our target market

and other vital aspects of our study about the marketability of the product.

G. Project Summary

a. Market Summary

In this part of the study, we determine the marketability of our product, the

right marketing program, the product, place and the appropriate pricing strategies we

need to make our product marketable.

b. Technical Summary

This part of the study focuses on the technical aspect of the business.

This includes labor, machineries and equipment which are the basic necessities

concerning sugarcane plantation. Labor because farmers have different tasks to perform

and assigned to do. Proper use of equipment will enable to prolong their productivity and

usefulness, thus, increasing the opportunity to plant more and produce fresh

sugarcanes, because the equipment helps their manpower.

c. Management and Legal Summary

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FEASIBILITY STUDY – SUGARCANE PLANTATION

To operate any business, workers and managers are needed. Wages and

benefits are laid proportionately according to the task given to them. Policies for the

organization are necessary in order to serve as a rule for the workers to allow basis for

some needed action. These policies are important to have a smooth flow of

management. The legal study involves the management’s rules and regulations that

must be following the government laws, practices and not contrary to moral and values

exercise in the Philippines.

d. Financial Summary

This area of study aims to provide financial information about the source

of funding, total cost in starting the business, and its cash flows and profitability for the

business to be established.

The form of business of Saccharine Plantation is a sole proprietorship.

The business will be funded by the contribution of partners in terms of monetary asset.

The estimated required capital in starting the business will be 15,000,000.00 which came

from the investment of the partners.

e. Socio-economic Summary

The socio-economic part of the study focuses on the benefits that it can

contribute to the Philippine Agricultural Industry and to the farmers of our country.

H. Definition of Terms

Laksa- 10, 000 pieces of sugarcane

Gamas-

Ilo

Quedan- is a Spanish term that literally means warehouse receipt. It shows

ownership of a specified amount of sugar in a warehouse or sugar central. It is also a

negotiable instrument, it is primary trading document in the sugar industry.

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FEASIBILITY STUDY – SUGARCANE PLANTATION

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