Research to revenue: the feasibility of brown rice cracker ice cream sandwich

Issue Date

7-2018

Abstract

Brown rice cracker ice cream sandwich (BRICS), made from nutritious brown rice and buffalo's milk, is one of the rice-based value-added products that was developed by PhilRice [Philippine Rice Research Institute] to provide additional source of income and nutrition for the rice-based farm communities. To ensure marketability and profitability of the BRICS, a pre-feasibility study was conducted. Consumer acceptability of the BRICS and the feasibility of its commercialization were determined. Results showed that the respondents (n=100, 15-30 y old) rated BRICS with ''like very much'' (x raise to negative power = 8.40 plus minus 0.8; 1-dislike extremely to 9-like extremely) and 100% of them were willing to buy BRICS once available in the market. Pre-feasibility study forecasted that if 1% and 2% of the target number of consumers (n=611,473) will buy the product, the potential market demand will be 10,546 and 21,093 BRICS every month, respectively. Further, it was found that the most feasible commercialization scenario for the product is at 2% of the target number of consumers at PhP 30.00 (approx 50% mark-up) per piece. Projected 5-year financial statements showed that if the product is commercialized for 5 years, it will generate positive net profits and net cash flows with a payback period 2.4 years, a positive net present value of PhP 688, 422.80, and an internal rate of return (37.5%) higher than the projected 12% loan interest rate for the capital. This means that the value of investment on BRICS will increase and profits will be earned even if the cost of operation will likewise increase over this period. Thus, BRICS has a high market potential and is profitable if introduced in the market at 2% market share, PhP 20.30 cost per piece, and approx 50% mark-up in selling price.

Source or Periodical Title

Philippine Journal of Crop Science

ISSN

0115-463X

Volume

43

Issue

Supplement no. 1

Page

130

Document Type

Article

College

College of Agriculture and Food Science (CAFS)

Language

English

Subject

Rice; Processed foods; Rice marketing

En – AGROVOC descriptors

RICE; VARIETIES; MARKETS; MARKETING; FEASIBILITY STUDIES; EVALUATION; FOOD TECHNOLOGY; PROCESSING; PROCESSED PRODUCTS

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