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Kingfisher School of Business and Finance
I. Introduction
A. Background of the Study
Today, prices of goods and services are much affected by inflation which results to market in
panic. Being a Filipino, one of our staple foods is rice. Most of consumers that fall in lower to
middle class will seek for affordable and healthy rice.
Mang Domeng Maize is a venture which will process corn into rice to give the consumers an
affordable and healthy alternative of commercial rice. The importance of this study is to give the
readers an idea in putting up their own business using the information provided. This will also
give opportunity to those businesses to improve their organization.
B. Company profile
Mang Domeng Maize is established to provide Corn Rice that is a good alternative of rice. It
is healthy and affordable corn rice because of inflation currently experiencing. The business
model is in line to manufacturing industry wherein the business incorporates processing corn
into rice. Additionally, the competitive advantage of the business is the knowledge acquired by
the two proponents from their parents and grandparents. But, in order to maximize this
advantage the proponents will be actively attending seminars and support government held
programs about corn rice to improve the technical skills of the proponents.
The business will be located in Poblacion Sto. Tomas, Pangasinan because it is known as
the corn capital of Pangasinan from where good quality of corns are being produced. Also it is
near from the suppliers of primary raw materials which is corn that eventually simplify the supply
chain and cut the cost. In order to maximize the business resources, it will mainly distribute corn
Resuello, J., Aficial, T.M., Calambas, A., Castro, C., De Guzman, A.J., De Gzuman, J, Domingo, N.C 1
rice to the retailers and wholesalers of rice in Pangasinan where mostly low to middle income
class buy rice.
The business will be organized as a partnership. Entering into a general partnership does
not take much paperwork to file with the state and each partner is liable for any debts or
judgments taken on by the business. Also, they has an equal right to participate in the
management and control of the business which signifies freedom from bureaucracy associated
with other business structures such as corporations.
According to one of the retailers of corn rice in Tagum City, Davao a 50% Return on
Investment is expected to be realized. The owners will invest Php 2 Million in establishing the
business.
The proponents estimates that the business will need a total investment of Php 1.88 Million
shown as follows:
A. Lease Payment Php 20, 000
B. Corn Dryer 220, 000
C. Corn Grinder 550, 000
D. Raw Materials (corn) 1, 020, 000
E. Flyers and Tarpaulins 20, 000
F. Distribution Cost 30, 000
G. Permit and licenses 20, 000
TOTAL Php 1, 880,000
Lease payment, distribution cost, flyers and tarpaulins and raw materials are based on
monthly expenditures. The cost of the machines (B and C) was based from Alibaba.com which
is a direct seller of factory machineries.
Figure 1.1. The Company Logo and Name
Domeng comes from the word “domingo” which means sunrise with the main product of the
business in the center which represents the rice that will be made up of corn. The sunrise
depicts that the business plans will rise and grow, and that it has a bright future awaiting.
C. Vision Statement
To be acknowledged as one of the best and trusted providers of Corn Rice in Pangasinan.
D. Mission Statement
Mang Domeng aims to provide top quality of corn rice for people seeking a healthy and
affordable alternative to rice that despite of market situation, every family would be able to put
rice on their table with our product.
E. Objectives
General Objective
To be recognize as the top producer and supplier of corn rice in Pangasinan.
Specific objective
To sell a good quality of cornrice with a daily sales volume of atleast 10-15 50 kilos of
sacks per day from approximately 5-10 distributors in Pangasinan that will generate an
annual ROI of atleast 20% by building a network with the suppliers prospective and existing
customer and association that support the product also to promote the brand with
economically produced raw materials and reusable packaging.
F. History
Back in early 70s during Marcos time people usually lined up for rice to buy NFA rice
which is cheaper than the local rice. According to an article entitled Long lines for rice not the
first time in RP history (2008) it states that the long lines in the 70s happened after poor
weather, pest infestation of rice paddies and flooding in central Luzon reduced local rice output
to 17%, prompting then President Ferdinand Marcos to create in 1972 the NFA through
Presidential Decree no. 4. To address the crisis, the Government increased rice importation in
1972 to 455,000 Tons from 10 Tons in 1968 and the heavy importation continued from 1973 to
1975 until decreased to 55,000 Tons to 30,000 Tons and finally to a non-import in year 1978.
In 1995 the people was just allowed to buy only 3 kilograms of rice at Bigasan ng Bayan
outlets because of the limited supply. Commercial rice price cost tripled and because the
Philippines is really dependent on imported rice, these external factors distressed the country so
the people look an alternative to rice and they used corn and camote as add on rice. They also
started to make corn into grains and mixed it on a rice just to survive from the very high price of
rice.
In Southern part of the Philippines especially in Mindanao and Cebu corn has become one
of their staple since it is the second best alternative after rice. According to an article entitled
How you eat Corn (2015) the southern especially Cebuanos found many ways to maximize the
potential of corn as a main source of carbohydrates and as a snack and mixing corn to a rice in
nothing new because it is an old practice when the price of rice tripled at the time of Marcos and
Until now they continually used the old practice and that is to eat corn rice.
G. Product Description
Corn rice is grain made up of Philippine-natural corn that has been processed and grinded
to be look similar in size and taste like the white rice. It is healthy and affordable alternative for
rice because of the currently experiencing increase on the price of rice and also because of the
risen number of people with diabetes.
In processing corn rice, the kernels that are removed from corn cob will undergo air dried via
an artificial dryer specifically designed for corn kernels to ensure that molds and fungus will not
form on the kernels and to speed up the process. Then, these kernels are grinded by a maize
milling machine to reduce their size and shape them into grains. It will then pack using sacks
and plastic bags containing measured amount (e.g. 1 kilogram).
1. Features
Figure 1.2
Characteristics Corn Rice Rice
Cost/Prices Wholesaler= Php 20.96/kg Wholesaler= Php 46.06/kg
Retailer= Php 27.82/kg Retailer= Php 49.37/kg
Availability Visayas and Northern Mindanao Luzon, Visayas and Mindanao
Region
Nutrients Calories = 123/cup of kernels Calories = 130/cup of rice
Protein = 5g/cup of kernels Protein = 2.4g/cup of rice
Carbohydrates = 27g/cup of Carbohydrates = 28.7g
kernels
Water = 69%
Fiber = 4.5g/cup of kernels

Fat = 0.2g
Vitamin B
Vitamin E
Lower Glycemic Index (GI) that
lessens the risk of diabetes.
Way of cooking Boiling first the water and then Washing the rice first and then
putting the corn rice without putting an amount of water
washing it because nutrients may same to the amount of rice
dissolve if it will wash. and simmer.
2. Benefits
The aside from health benefits that the customer can get in consuming corn rice, it may also
reduce the stress of customer struggling to buy an affordable rice in the market. For those
wholesalers and retailers, they can immediately get their orders from Mang Domeng Factory
and will also provide delivery for bulk orders.
H. Location Profile
The business will be located in Sto. Tomas, Pangasinan, a small town that was known as
one of the top producer of corn in the Philippines. Sto. Tomas was a formerly part of Alcala
which was called that time as “Arranggo”. During 1908 it was successfully fused with Alcala and
now has its 10 barangays that mainly produces palay, yellow and white corn, coconut, poultry
and livestock. The proponents decide to lease a factory with a total land area of around 100
square meters which was under construction by the government.
The proponents have chosen Sto. Tomas as it is not only near the suppliers of corn, but
it is also near from the public markets of Villasis, Urdaneta, and Alcala. It is a strategic location
because of its proximity with the markets and the corn is produced in Sto. Tomas, meaning that
the business will experience minimal problems in obtaining the raw materials and delivering the
final product to the markets near the business.
Figure 1.3
Figure 1.4 Location of Mang Domeng at Poblacion, Sto. Tomas, Pangasinan
I. SWOT Analysis
1. Strengths
 Technical Knowledge
Since the proponents have the knowledge of processing corn into rice it
minimizes the cost of hiring a person who will manage the main operation of the
business. Also by having an expert on the business operation it can address certain
problems timely and well-mannered.
This could attain by means of attending seminars which will help or give additional
knowledge to the proponents to enhance their technical and managerial skills in the
production of corn rice.
 Having an Air Dryer Machine
Air Dryer Machine maintains the quality of the corn and would boost the production
to meet the required raw materials for the processing of corn rice. It also prevents the
corn rice from having molds, unlike if it is dried directly into sunrise that was prone from
contamination and other external factors.
By having a monthly maintenance and a daily inspection point to assure that the
machine is in a proper condition and avoiding some possibilities of spoilage or reworks.
 Delivery Services
Delivery services will create a convenience on the part of the customers especially
in terms of bulk orders and expenses.
The business will provide free delivery services to customers within the 2km range
of premises and bulk orders which will provide convenience in terms of their target cost
of handling their inventories and also it will enhance relationship between the business
and its customers.
 Easy Access on Distribution Channels
Competing brand is generally distributing its product to bigger and well-known
chains like SM and Savemore. That’s why low to middle income earner families are
struggling to allocate their daily budget in most economical way in order to sustain their
needs.
In order to address the compelling needs of low to middle income earner families,
the business was distributing its product to local retailers for an easy access on the part
of the end consumers.
2. Weaknesses
 Weak Branding and Reputation
Since the business was currently entering on the market of Corn rice production it
becomes a prevalent weakness to the proponents since customers are familiar from a
specific store or brand especially when the competitor has a better brand recognition.
In order to address this weakness the proponents should use appropriate and clear
details about the product by issuing flyers and having a better quality of packaging that
ensures the good quality of the product.
 High Initial Cost
To meet bulk demands of the retailers on the product and to ensure timely and good
quality of output the proponents will have to invest greatly on machines. Another is the
cost of building the factory from where the operation will seized.
To address this problem the proponents should maximize its resources and greatly
enhances the product quality to build the trust from its customers which eventually
through word of mouth as a primarily efficient way of marketing strategy can multiply the
sales which will meet the initial cost from the putting up the business.
3. Opportunities
 Supported by Government Agencies
Government agencies like Department of Agriculture (DA) and National Food
Authority (NFA) recommended that corn rice can be a viable substitute of rice to people
who can barely afford rice. Also, considering that rice is a primary commodity and due
to its increasing price, it is viable to look for an alternative of rice. This is serve as an
opportunity because it is approved and supported by the government.
With this the business will actively participate to the programs of the DA about
corn rice, attend bazaars or expo held by different municipalities and malls. It will also
serve as an opportunity to address the shortages of rice by marketing the product.
 First Producer and Supplier in Pangasinan
Being the first producer and supplier of corn rice in Pangasinan, the business will
be given an opportunity to establish its name on the market and could outreach those
low to middle income earner family to sustain their daily needs in rice in behalf of the
currently experiencing shortages and increase of prices.
The business will be the direct supplier of corn rice in whole Pangasinan. To
maintain this opportunity, the business should make its product in good quality and good
relationship with its target market.
 Simple Supply Chain Management
The business holds the same place of operation and direct supplier of raw
material which offers farm gate prices on bulk purchase inclusive of discounts which will
cut the cost of transporting the raw materials.
The business should have a good communication skills with the supplier to
maintain the good relationship between the two. Also to the households leaving the
nearby factory by not sacrificing their convenience just for the profitability of the
business.
4. Threats
 Inflation
This is a threat to the business because it affects the prices of all product and
services. Considering the product that is a commodity, it has a huge impact in increasing
prices.
To lessen the effect of inflation, the business will minimize the cost of raw
materials usage. Also in terms of scrap, the business may consider having sales on its
byproducts to at least help the business from its overall expenses.
 Ease of entry
Since the business is recommended by the Department of Agriculture (DA) and
National Food Authority (NFA) given that the processing was easy, anyone can engage
with this kind of business that’s why many competitors will arise.
The business should maintain its way of processing corn into rice. The procedure
should be entrusted to the operational teams and preserve the secrecy of producing the
product. Also by the time of eventually improved branding and established reputation it
would help the business to ensure the loyalty of consumers on its product.
J. References
AgriBusiness. (2014). Retrieved last October 13, 2018, from

http://bworldonline.com/content.php?section=Agribusiness&title=corn-rice-eyed-as-
healthier-alternative-staple&id=96516
DA Launches Healthier Grain Combo. (2017). Retrieved last October 13, 2018, from
https://www.foodevolution.com.ph/2017/12/da-launches-healthier-grain-combo
Diaz, JL., et al,. (2017). Retrieved last October 13, 2018, from
https://scholar.google.com.ph/scholar?cites=1723757434725011169&as_sdt=2005&sciod
t=0,5&hl=en&scioq=what+is+corn+in+philippines#d=gs_qabs&p=&u=%23p%3D2HvSwhX
cJgkJ
Khok, O., (2015). Retrieved last October 13, 2018, from

https://www.pressreader.com/philippines/sunstar-cebu/20150912/282132110224898
LGU-Sto. Tomas, Pangasinan, (2018). An interview regarding the Production of corn in

Sto.tomas. (T. Aficial, Interviewer)
Rico Corn Rice: Healthy Alternative to Rice. (2014). Retrieved last October 13, 2018, from
https://www.yedylicious.com/2014/11/rico-corn-rice-healthy-food.html?m=1
Sabangan, AR., (2008). Retrieved last October 12, 2018, from

http://www.gmanetwork.com/news/news/specialreports/89962/long-lines-for-rice-not-the-
first-time-in-rp-history/story/
II. INDUSTRY ANALYSIS
A. Overview
The study of corn rice production indicates that there’s a shortages of rice in the Philippine
market. Due to these increasing demand and prices, the Department of Agriculture promotes
corn rice as an alternative of rice. Furthermore, they aims to increase production of good quality
corn for nutrition and food security because of the threat of increasing population and it will help
farmers increase their income from a production of 1.952Million Metric ton (MT) in 2017 to
4.91Million Metric ton (MT) by 2022 in the Philippines (PIA.Gov, 2018).
According to Sto.Tomas Agricultural Office, data shows that it has a large production
volume increment for CY 2015-2016. This result into more farmers shifted from yellow corn into
white corn resulting from an increase production volume increment into positive 227.65 metric
tons (MT). Another reason is that the change of market preference and short life period of
production. With this, the supply will be sufficient to meet the demand raw materials in
producing corn rice. (Paspas Sto Tomas, 2017)
These raw materials will came from San Antonio, Sto. Tomas Barangay Captain Reynaldo
Valdeza and the remaining deficit on supply of raw materials will be coming from Ilagan City,
Isabela. While it was still in transit the proponents will be dependent on the supply of raw
materials from Sto. Tomas for them to have a continuous production cycle avoiding some idle
time in its operations.
On the other hand the demand of low price rice was surpassing the supply due to inflation
that’s why government like Department of Agriculture (DA) and National Food Authority (NFA)
continuously support the corn rice program. Base on Bureau of Agricultural Statistics Survey on
Food Demand, there is an increase in consumptions of corn during 2012 in which it reach
almost 10 kilos of corn per person a year compared to almost 7 kilos of corn from the previous
years. Today there’s at least 14 Million Filipinos who are consuming corn as their staple food
especially in province of Visayas and Mindanao.
In terms of pricing, there’s a huge increase on prices from previous year up to the present
due to increment weather conditions which affects the production of corn. The average farm
gate price of white corn grain by the year 2017 was respectively increase compared to the year
of 2018 but then dropped by 28 percent at P13.4/kg.
Due to existing factors like shortages of low price rice in the Philippine market and
increase of prices in commercial rice, Philippine Rice Research Institute Deputy Executive
Director Roger Barroga recommended the use of corn as an alternative to rice to become the
main source of carbohydrates and a good alternative staple. With this, finest quality of corn
produced from Sto. Tomas are procured directly from the farms which will then transported in
the factory at the same place to process and sent to distribution centers like retailers throughout
Pangasinan. Aside from lessening the burden of Filipinos through prices, it is a healthy
alternative since corn rice has low glycemic index which primarily concerns person’s blood
sugar and high in fiber. So the government will be conducting out a program that will incorporate
corn in the country’s food supply starting this year. By using this opportunity for the business by
creating a high level of customer service than marketing. According to Agricultural Secretary
Manny Piñol, the industry is looking forward to produce at least 300,000 to 500,000 tons of corn
next year to be able to reach the sufficiency in staple of grains and with this it would be a good
strategy to conquer the Filipino’s dependence on imported rice every time a shortfall in supply
outsides (JPA, 2017).
In the Philippines there’s only one top manufacturer of corn rice which is located in Iloilo.
Rico corn rice by La Filipina is made from corn harvested from the provinces of Isabela and
Bukidnon. They started by the year 2012 when La Filipina Uy Gongco Corp., created two-corn
drying facilities in Bukidnon and Isabela as Isabela became their main facility and recognized as
one of the biggest in Southeast Asia that can hold a process volume of 200,000 metric tons
(MT) which was available to bigger chains like SM and Savemore.
The gap between supply and demand of corn rice is 1,630.272 which shows that the
demand exceeds supply since the proponents will going to be the first producer and supplier of
corn rice in Pangasinan. According to survey, at least 10 kilos of corn rice per person was
annually consumed and out of 203,784 population of the proponents primary target market
within the Municipalities of Sto. Tomas, Villasis and Urdaneta, 80 percent was willing to shift
from rice into corn rice. Given this data, it accumulates 1,630.272 metric tons of corn rice
needed a year. Also, the supply was limited only from different malls specifically in Walter Mart
Dasmariñas, Robinson's Pioneer, and Robinson’s Novaliches, SM Rosario, Gaisano Tagum
City Davao, Savemore Park Mall and Walter Mart Tanauan. Due to this insufficiency of supply
and far distribution channels the proponents considered those people from low to middle income
earners within the Pangasinan since they are also affected of inflation and shortages of low
price rice for them to have an easy access to the supply by means of retailers from public
markets.
B. Supply
Source: Paspas Sto tomas
Figure 2.1
Production of White Corn

in Sto.Tomas
800
600
400
200
0
CY 2014-2015 CY 2015-2016 CY 2016-2017
Present Previous Ave. yield volume
Figure 2.1 shows that in the year 2014-2015, the total production in year 2015 is equal to
284.0 metric tons or 4.32% higher than the previous year with a total production of 272.25
metric tons. However, in the year 2015-2016, the total production in year 2016 has increase of
56.83% with the total number of 445.4 metric tons compared to 2015 with the total production of
284 metric tons. Now, looking at the 2016-2017 data, the total production for the year 2017 is
51.11% higher than in the year 2016 with a 673.05 metric tons.
C. Demand
The proponents conducted surveys last October 12, 2018 in Sto. Tomas where the
business will be located. The proponents surveyed 10 people and 8 out of them are willing to
shift rice into corn rice. From the summation of the population composed by municipalities of
Urdaneta, Villasis and Sto Tomas, shows an approximately 203,784 individuals. With this data
80 percent are willing to trade off rice into corn rice which probably consumed 10 kilos of corn in
a year. Converting this data to metric tons, it has 1,630.27 metric tons of corn rice to meet this
demand.
D. Poster’s Five Forces Model
 Bargaining Power of Consumers – MODERATE
Having a commodity business, has a huge disadvantage in terms of bargaining power of
consumer. There are many established competitor where people usually buy rice. Consumers
are used to eating rice since it is a staple food. Not all consumers are willing to suddenly change
their menu, but due to the price increase of rice, some consumers will consider changing their
menu to a cheaper alternative. Also corn rice is also relatively new in Pangasinan, being only
consumed by a few numbers of people.
Since it is a substitute, it has a lower price compared to commercial rice which can decrease
the bargaining power of consumer. In terms of processing corn into rice, it could easily imitate
by consumer because the procedure is easy to follow.
All in all, the bargaining power of consumer in this business is MODERATE. To lower this,
the business should introduce the product indicating the benefits that the consumer could get.
 Bargaining Power of Suppliers – LOW
The supply of the raw material in processing corn rice is abundant in the location of the
business.The municipality of Sto. Tomas, Pangasinan, a former barangay of Alcala, Pangasinan
is surrounded with agricultural land which are planted with corn.
In this case, the bargaining power of supplier is low. To maintain this, the business should
have good relationship with the supplier.
 Threat of New Entrants – MODERATE
The ease of entry in this kind of business is moderate because of a few factors like using an
air dryer machine and grinder use specifically in corn. The business will have to invest in
machines to properly process the corn rice. Corn rice is also relatively new in Pangasinan, being
only consumed by a few numbers of people. This could prove to be a short term problem as
people may not patronize corn rice completely at the start of the business.
Corn rice is recommended by Department of Agriculture (DA) to be substitute to commercial
rice. It is approved and supported by the goverment that is why anyone can engage to this
business.
Due to these factors, the business has determined that there is a moderate in Threat of New
Entrants. To decrease this, the processing corn into rice of the business should be hard to
imitate by others entrusting it to the operational department.
 Threat of New Substitutes – MODERATE
In terms of the producing corn rice, it can be said that the general need of its customers is
rice. It may be clear that there are many alternatives for rice besides corn rice, there are brown
rice, black rice and the regular rice. Depending on the budget or income of the customers.
Especially in Pangasinan, more people use regular rice or brown rice. In addition, the production
of corn rice might get some serious future competition because it is suggested by the
Department of Agriculture. So, the threat of substitutes of corn rice can be considered at least
moderate to high.
 Competitive Rivalry among existing Players – MODERATE
The intensity of competitive rivalry in the industry is moderate. It is because it is new in the
market and there is only one existing competitor in the market. The current competitor of the
business is the Rico Corn Rice, the current competitor.
E. Competitors Profile
Rico Corn Rice is one of the main direct competitors of
Mang Domeng. Rico Corn Rice is a new product of La
Filipina Uy Gongco (same makers of La Filipina Corn Pork)
a non-profit Organization and are mainly located in Iloilo
City, which is the rice is basically made from corn
harvested locally from the provinces of Bukidnon and
Isabela. According to an article entitled Corn rice eyed as ‘healthier’ alternative staple it states
that In 2012, La Filipina Uy Gongco started to produce a corn rice because more and more
people from different parts of the Philippines especially in the southern part are choosing corn
instead of rice to pair their daily meals and also to help aid the rice shortage and lastly to
support the local farmers. They usually distribute their product in different malls specifically in
Walter Mart Dasmariñas, Robinson's Pioneer, and Robinson’s Nuvali, SM Rosario, Gaisano
Tagum City Davao, Savemore Park Mall, Walter Mart Tanauan and other malls. The Rico Corn
Rice is available in 1 kilogram, 2 kilogram and 5 kilogram packages for suggested Retail Price
of Php 70, Php 125 and Php 300. One of their main competitive advantages is that they are
already established and recognized in the market especially in malls in the southern part.
Other producers of Rice like brown rice, black rice, hybrid rice and others are considered as
the indirect competitors of Mang Domeng and their main competitive advantage is that they are
already established in the market and it is the main staple of Northern Luzon.
F. Suppliers Info
The primary raw material needed to process corn into rice is the corn itself. As for the type of
the corn, the business will use glutinous corn grown in San Antonio, Sto. Tomas. Sto. Tomas is
one of the top producer of corn in Pangasinan. The business will be conducting agreement
about the supply of raw materials with the Barangay Captain of San Antonnio, Sto. Tomas who
is Mr. Reynaldo Valdez since the business will be based in Sto. Tomas it will have simple supply
chain in acquiring the raw material.
In terms of deficiency from the supply, the business would get these raw materials from
Ilagan, Isabela. Since it is also considered as the country’s top corn producing province earning
title as “Corn Capital of the Philippines” contributing approximately 21% of annual corn
production.
III. Review of Related Literature
The Philippines has been one of the world’s largest suppliers of primary commodities in
the global market since it has two season which could sustain the needs of the plants, forestry
and fisheries. On that note, rice production gives off the supply for the demand of the local
people and also makes good trading internationally. Rice is one of the most produced crops
because it is most needed by people for their daily lives, and is mainly consumed as the main
part of the Filipino meals for almost three times a day. Moreover, it sustains proteins and
calories that are essential for the body. However, the harvested areas are still very small
compared to the consumption. This leads to more importation of rice products from other
countries like Vietnam and Thailand making the Philippines the biggest importer in Asia. On the
other hand, the Philippine production of rice increased for approximately 70 percent which came
from the irrigated areas from 1995 to 2010.
The aim of this study is to provide information for the government’s use, and to those that
are authorized to make decisions regarding the topics discussed to ensure the betterment of
supply of corn and rice in the market. Also it could help to improve the trading statuses of the
crops mentioned in the study. This may even help the common people to attain information
about the process regarding the production, the system of trading, and how the possible
financial aspect is being assessed through the processes involved (Diaz, J.L., et al., 2007).
Corn is one utmost massively produced crops in the Philippines. It is primary known as the
substitute food whenever there is a shortage for the production of rice. It is one of the most vital
cereal crops grown worldwide that was used for human food, livestock feed, fuel and various
industrial food applications (Ranum et al., 2014; Gwirtz and Garcia-Casal, 2014). Corn is the
second most important agricultural crops in the Philippines next to rice. About 20% of the
Filipinos regarded corn as staple food. It also played as important role in the livestock
development and poultry industries with 60% of its total production yield used as feeds while the
remaining 40% used as food and other products (Dela Cruz et al., 2008).
Various classification of corn like yellow corn which is mostly being locally utilized for the
livestock and poultry as a primary source of food in the animal industry. On the other hand white
corn as the staple food for almost 20 percent of the population primarily in the southern regions
of Visayas and Mindanao that makes a major ingredients for producing raw material and
industrial products like starch oil and organic liquid. From 1980, the Philippines produces for
about 3 million metric tons of corn crops from almost 3.2 million hectares of land which surged
up to approximately 5 million after the land was cultivated were increased for about 00.6 million
hectares for ten years. During the year of 2000, the production reduced by 0.3 million metric
tons of total corn crops harvested from the number of areas declined which was about 1.6%
annually. It was signposted in an article by Louise Maureen Simeon (2016) that the production
of corn in the Philippines at present has been 7% less than the earlier forecast of 4.37 million
metric tons of corn products, by the Philippine Statistics Authority in 2015.
Thus, the government through the Department of Agriculture (DA) is striving to improve
the agricultural production and handling system of corn in order to increase the yield per hectare
of corn farms. In line with the enhancement of agricultural production systems and the
aggressive step towards mechanization, the heavy reliance of energy resource would be
expected to increase. Energy use in agriculture has been amplified in response to growing
populations, decreasing land area and aspiration for increasing standard of living. These factors
have stimulated an increase in energy inputs to maximize yields and minimize labor intensive
practices (Esengun et al., 2007).
Since corn requires less production inputs, especially water, compared to rice. Corn also
thrives well in marginal areas, making it a viable source of livelihood for resource-constrained
smallholder farmers. The most desirable soil for corn production is deep, medium textured, well
drained, and with high organic matter and water holding capacity. Soil types with these
characteristics are loam, silt loam, and silt clay loam (PCARRD, 1981). Land is prepared as
early as one month before the actual planting date. It is plowed and then harrowed two weeks
after to meet the desired soil texture. Plowing is done when the field is of the right moisture
content. A corn plant requires 4 to 5mm of water per day. During critical periods like silking and
soft dough stages, the requirement could be as much as 6 to 8mm/day. If the crop does not
receive enough water during this period, as much as 20 to 50% yield could be lost. Lansigan,
et.al (2004) estimated that the most critical point falls around 55 days after planting (DAP).
Other literatures state that water should be available at 40 DAP during the start of
flowering or reproductive stage. In areas where water is not a problem, farmers are advised to
irrigate every two weeks. Harvesting is done when the crop reaches its physiological maturity at
around 90-120 DAP. Signs of grain maturity include drying-up of the corn ear and darkening of
the base of kernels (Domingo, S. et al., 2009).
Overtime rice income elasticity have been declining during periods of income growths. For
corn, income elasticity become more negative during periods of increase in income and less
negative during periods of income decline. The high price foods like meat, fish, fruits, and
vegetables have higher income elasticity than staple cereal. Thus, with increase income and
demand for high valued commodities also increase significantly while increase in staple
commodity would only be marginal. (Rasco Jr. E., 2013)

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Kingfisher School of Business and Finance

A. Background of the Study

middle class will seek for affordable and healthy rice.

give opportunity to those businesses to improve their organization.

class buy rice.

with other business structures such as corporations.

A. Lease Payment Php 20, 000

B. Corn Dryer 220, 000

C. Corn Grinder 550, 000

D. Raw Materials (corn) 1, 020, 000

E. Flyers and Tarpaulins 20, 000

F. Distribution Cost 30, 000

G. Permit and licenses 20, 000

TOTAL Php 1, 880,000

is a direct seller of factory machineries.

Figure 1.1. The Company Logo and Name

rice on their table with our product.

To be recognize as the top producer and supplier of corn rice in Pangasinan.

economically produced raw materials and reusable packaging.

risen number of people with diabetes.

and plastic bags containing measured amount (e.g. 1 kilogram).

Characteristics Corn Rice Rice

Cost/Prices Wholesaler= Php 20.96/kg Wholesaler= Php 46.06/kg

Retailer= Php 27.82/kg Retailer= Php 49.37/kg

Availability Visayas and Northern Mindanao Luzon, Visayas and Mindanao

Nutrients Calories = 123/cup of kernels Calories = 130/cup of rice

Protein = 5g/cup of kernels Protein = 2.4g/cup of rice

Carbohydrates = 27g/cup of Carbohydrates = 28.7g

Fiber = 4.5g/cup of kernels

Lower Glycemic Index (GI) that

lessens the risk of diabetes.

putting the corn rice without putting an amount of water

washing it because nutrients may same to the amount of rice

dissolve if it will wash. and simmer.

and will also provide delivery for bulk orders.

square meters which was under construction by the government.

final product to the markets near the business.

Figure 1.4 Location of Mang Domeng at Poblacion, Sto. Tomas, Pangasinan

problems timely and well-mannered.

production of corn rice.

 Having an Air Dryer Machine

contamination and other external factors.

machine is in a proper condition and avoiding some possibilities of spoilage or reworks.

in terms of bulk orders and expenses.

and its customers.

 Easy Access on Distribution Channels

Competing brand is generally distributing its product to bigger and well-known

of the end consumers.

 Weak Branding and Reputation

ensures the good quality of the product.

 High Initial Cost

 Supported by Government Agencies

Government agencies like Department of Agriculture (DA) and National Food

opportunity because it is approved and supported by the government.

serve as an opportunity to address the shortages of rice by marketing the product.

 First Producer and Supplier in Pangasinan

currently experiencing shortages and increase of prices.

relationship with its target market.

 Simple Supply Chain Management

cut the cost of transporting the raw materials.

byproducts to at least help the business from its overall expenses.

Since the business is recommended by the Department of Agriculture (DA) and

AgriBusiness. (2014). Retrieved last October 13, 2018, from