Feasibility Study of Establishing One Hectare 'Sinta' Papaya Plantation in San Jose, Batangas

Date

2011

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jimmy B. Williams

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Abstract

‘Sinta’ papaya is a hybrid papaya with moderate tolerance to Papaya Ring Spot Virus (PRSV). It is a semi-dwarf, prolific bearer, medium-sized (1.2-2 kg), yellow- orange, sweet and firm. It is gynodioecious variety producing bisexual or hermaphrodite and female fruits only. This variety also produces an average of 30 kilograms per tree per year. The development of this variety presents tremendous economic opportunities for areas which are highly affected by PRSV.

The study was conducted to determine the feasibility of establishing ‘Sinta’ papaya plantation in San Jose, Batangas. Specifically, it aimed to present the ‘Sinta’ papaya plantation and its planned area of operation; determine the market, production, organization, and financial viability of operating the plantation in San Jose, Batangas; identify the possible risks and potential problems to the implementation of the project; and recommended specific courses of action based on the findings of the study.

The project life is three years and operating as sole proprietorship. The plantation will be established in Brgy. Bagong Pook, San Jose, Batangas. There is one-hectare of land that is available for the project. The one-hectare idle land will be for ‘Sinta’ papaya plantation.

The ‘Sinta’ papaya plantation will produce papaya fruits as its product. A five percent rejects was allotted for the total production. ‘Sinta’ papaya will be harvested weekly until the last year of productivity. The papaya fruits will be picked up by Mr. Allan Virtucio in San Jose, Batangas.

The study was generally found to be feasible investment option. A total of P 251,234.67 is needed as the initial investment which will be sourced from the owner’s equity. Financial projections showed that the payback is expected at 1.69 years with an NPV of P 106,568.10 and an IRR of 36.29%.

A sensitivity analysis was also conducted to test the project’s viability given varying circumstances. The project is feasible in the two scenarios because these scenarios give positive value of NPV and IRR greater than the cost of capital. However, the NPV and IRR became lower as the production yield declined in each scenario. While the third scenario, the project is not viable due to assumption of 15% decrease in production yield.

Language

English

LC Subject

Papaya industry, Tree plantations

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2011 M17 I43

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Document Type

Thesis

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