Business plan for a banana plantation in Calingag, Pinamalayan, Oriental Mindoro

Date

2001

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Arrienda, Faustina Q.

Abstract

A business plan was done to assess the technical, marketing, organizational and financial feasibility in expanding the 4.8-hectare farm in Calingag, Pinamalayan, Oriental Mindoro. The farm, which is currently producing bananas, is expanding its venture, adding coffee, pineapple and Sasso native chicken in its product line. Banana, which serves as its primary crop, will be intercropped with coffee and pineapple. Sasso, on the other hand, will be housed in a 1-hectare area. Coffee and pineapple were chosen to be intercrops based on the normally practiced pattern for multiple cropping. In addition, requirements for the for the two crops suit the place. Sasso is introduced to address the problem of decreasing poultry population in the area. The bananas will be bought to a contracted retailer from Q Mart. Dried coffee beans will be sold to a local miller in a per kilogram basis. Pineapples will be sold in the public market at a prevailing market price. Sasso native broilers will be initially marketed locally through a poultry retailer from the municipality. The venture will be a family corporation. Members of the family have been assigned with their respective positions in the corporation. Roles and responsibilities for each member were also presented. There will have a capital infusion of P1,638,333.20 as initial investment is expected to be paid back after 3 years. Net present value for a ten-year projection is P3,112,296.57. Internal rate of return is 50.5%. The crops, which will be planted, have an average income of P249,467.84. On the other hand, Sasso native chicken comprises 74.37% of the total income the venture will generate. It can tolerate a 16.4% decrease in sales, a 28.65% increase in cost of goods sold, and a 6.35% decrease and 17.55% increase in sales and cost goods sold, respectively. Futhermore, sensitivity analysis performed for the combination of agricultural crops and poultry revealed that sales will only be allowed to decrease by 19.05% to maintain the venture productive. Cost of goods sold can be increased by 35.05%, at most so that the project will not be in the losing end. When both parameters are changed, sales can be decreased by 10.35% and cost of goods sold by 16%.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

LG 993 2001 M17 A84

Document Type

Thesis

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