Feasibility Study of the Commercialization of the IPB-Developed Hirang Papaya Technology

Date

4-2013

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 Feasibility Study of the Commercialization of the IPB-developed Hirang Papaya Technology was conducted to assess the viability of making the technology available in the market.

The study also aims to present the Red-fleshed Papaya Technology, formulate an appropriate and effective plan which will then serve as the basis for the licensing agreement scheme between the Institute of Plant Breeding (IPB) and a seed company through the Center for Technology Transfer and Entrepreneurship (CTTE), and recommend ways of carrying out the project based on the findings of the study.

Primary data were obtained by the researcher through surveys and interviews with papaya seed companies, distributors and dealers, selected commercial fruit growers in Laguna and Quezon, Dr. Pablito M. Magdalita, the major plant breeder, and Ms. Perrose L. Comendador, University Extension Associate II from the CTTE. Secondary data, on the other hand, were obtained from published journals, undergraduate theses, books, periodicals and online materials. Statistical data and other related facts were derived from government agencies and websites. The data were then analyzed through the use of financial measures, such as net present value (NPV), internal rate of return (IRR), and payback period. Furthermore, sensitivity analyses were conducted to verify the project’s adaptability and capability to adjust to different economic situations.

The latest papaya variety from the IPB, the Red-fleshed Papaya named “Hirang”, was developed by Dr. Magdalita for two main reasons: (1) to address the papaya ringspot virus (PRSV) infestation problem and (2) to cater to the market preferences. This flesh color is said to be preferred in Bicol Region, and in other countries such as Taiwan, China, Korea and Malaysia. Consumers with Chinese background prefer this type because they associate such color with luck. Currently, the Institute, through (CTTE), is having negotiations with a seed company to be the licensee and distributor of the said technology.

The commercialization for this study would refer to the transfer of the complete package of the technology including the sale of parental seeds, hands-on training of the farm manager and farmers of the seed company, provision of technical assistance and production and quality monitoring by the IPB. The transaction will be done through a licensing agreement between the IPB and the seed company through the CTTE. The parental seeds that will be produced by the IPB will be sold to the seed company. These seeds will then be used by the seed company to produce the F1 seeds.

Based on the projections done in assessing financial viability of the project, results had a positive NPV of Php1,165,829.80, IRR value of 41% which is greater than the cost of capital of 8.17% , a Payback Period of 2.63 years and ROI value of 128.73%. This means that the project is worth pursuing since the Institute will be able to recover the initial investment and gain much profit. The positive NPV also means that after considering the time value of money, the total future cash flow of the project is greater than the initial investment.

Language

English

LC Subject

Papaya industry, Service industries--Marketing

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2013 M17 V53

Notes

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Document Type

Thesis

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