A Feasibility Study of Coco Plate Livelihood Project of Local Government in Bay, Laguna

Date

3-2014

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Normito R. Zapata, Jr.

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Abstract

The study was conducted in order to know if the production of coconut midrib (ting-ting) in Brgy. Sta. Cruz, Bay, Laguna will be feasible. This study attempts to present the aspects of production and the planned area of operation in Bay, Laguna and the marketing of the product in its nearby towns; determine the market, production, organizational and financial viability of establishing the livelihood project; and to recommend specific courses of action based on the results of the study.

Primary data were gathered from interviews to the cooperative who will handle the project if it will be implemented in the near future, owners of native handicraft products in Laguna area and Divisoria and possible supplier of the raw material which is the coconut midrib. On the other hand, secondary data were gathered with the use of books, magazine articles and internet regarding the problems and prospects of coconut and handicraft industry.

The product will have a price of Php 7.00 each. The cooperative must promote the product since most of the end users of native plate are not familiar of the plate product which the cooperative will produce. The manager may ask the distributor to place it beside the other native plate products or place it where the end users can easily see it. The cooperative may also join exhibits during special holidays in Laguna and place booths where people can easily see the products. According to the market demand of native plates, there is an average of 15,000 native plates demand coming from San Pablo, Laguna and Divisoria for one month. The cooperative will only produce 4,500 pieces of ting-ting plate per month since there is limitation in the use of raw material specifically, the coconut midrib and also there is lack of time and laborers who will produce the product.

People with Disability Cooperative is the cooperative located in Brgy. Sta Cruz that will handle the project. It will be headed by Mrs. Aurea Mercado and total of 18 members of the cooperative including Mrs. Aurea will serve as the laborers of the said project. The raw materials will be supplied by Mrs. Ellen Maghirang everyday who is also a resident of the barangay. But still, the manager must still look for another suppliers of the raw materials because of the quantity of coconut midrib needed everyday for the production of the ting-ting plate. The salary of the laborers will be on piece rate which is Php 5 per piece. The products will be delivered to the native shops in San Pablo, then to Divisoria every 30th of the month.

The total initial investment for this project is Php 35,760.00. Capital expenditure is not included in the computation since there are no land, building and machines acquired in the project. Sensivity analysis was also done in order to know what is the exact value of price of coconut midrib, number of output produced and salary of the laborer for each plate that he will produce that will cause a break-even point.

For Scenario 1, if the price of the coconut midrib per plated reached to Php 1.30, the cooperative will be able to cover all their expenses but they will only gain a net profit of Php 180.00 for the whole year making it Php 15.00 per month. An increase in this value will make a net loss for the project. For Scenario 2, if the number of output will only be 27,276, the cooperative will only incur a net profit of Php 4.32 for the whole year. Any decrease from this value will cause the income statement to project net loss. Lastly, for the third scenario, which is the maximum wage that a laborer can get from producing one output, any increase from Php 5.65 will cause a negative value in the net income. If the laborers will have their salary of Php 5.65 for every plate they made, the net income for 1 year will be Php 180.00.

Possible problems were also analyzed and discussed with each business aspect and recommendations were given by the researcher.

For the marketing aspect, since the product is not well known by the end users, the cooperative must be able to promote it by asking the traders to place the ting-ting plate where people can easily see it. Offering it to cheaper price compared to nito plate is also a good strategy to catch customers who prefer to buy products in cheaper prices. Also, the researcher recommended the cooperative to join exhibits and display the products during holiday season.

For the organization aspect, the possible problem that the researcher have analyzed is that the members or the laborers have personal reasons such as time doing household chores, taking care of their children or even just laziness that causes them not to produce the product. The researcher recommended that the manager should build a harmonious relationship between them in order to know the real reason for this possibility so that it can be avoided easily.

When it comes to the production aspect, the possible reason that the cooperative may encounter is the lack of supply of the raw material. With this, the researcher suggested that the produce per month will not be according to the average monthly demand but according to how much the laborers can produce and how much the supplier can supply. They should also look for other supplier of the raw material since there are also coconut plantations near the studied barangay.

Language

English

LC Subject

Coconut products, Coconut craft, Cooperative societies

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2014 M17 H57

Notes

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Document Type

Thesis

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