PROJECT PROPOSALINCOME GENERATING PROJECT

I. BASIC INFORMATION

Project Title : DRAGON FRUIT PRODUCTION

Project Location :

Project Type : Income-Generating Project

Project Proponent :

Implementing Agency :

BACKGROUND/RATIONALE

Dragon Fruit (Hylocereus undatus) production is gaining more and more recognition as an important
crop. It is a nutritious fruit with a variety of uses. The fruit pulp can be eaten fresh and can be made into
various valuable processed products. The fruit possesses medicinal properties: it is known to prevent
colon cancer and diabetes, neutralizes toxic substances such as heavy metals, reduce cholesterol and
high blood pressure. It is also reported to control high sugar levels, prevent cancer and bleeding, and
promote dental health. It is rich in vitamin C, phosphorous and calcium which help to develop strong
bones, teeth and skin. The fruit is considered a health fruit

(ICBF, 1992; Morton,1987).A Dragon Fruit Production Enterprise has been demonstrated to
provide viable source of food, income and employment to growers locally and abroad. It could be an
asset to backyard growers as well as entrepreneurs of medium and large scale plantations. It is a fast
return perennial fruit crop with production in the second year after planting, and full production within
five years. It was also noted to sustain production up to twenty years provided desirable cultural
management practices are applied. Although the initial investment is relatively high, profit is substantial
and within 4-5 years, about 4-5 million pesos could be earned per hectare. Dragon fruit is an ideal crop
for dry areas but differs from other cacti species which are of dessert origin because it requires sufficient
rainfall ranging from 1.730

2.540 mm per year to sustain its productivity. It can grow in varied types of soil provided the plantation
area is well drained. On these premises, considering the climatic condition of Cagayan, CSU Gonzaga and
other neighboring communities can be ideal for dragon fruit production. Besides, according to
observation on the agro-physical characteristics of Dragon Fruit, the level of risk in producing the crop is
lesser and to some extent more tolerant to adverse weather conditions as compared to the production
of other high-value commercial crops.

The campus is undergoing intensive development in Organic Agriculture, establishment of an Integrated

and Diversified Organic Farming System and the nations battle cry to mitigate climate change through
its National Greening Program. Anent to this, since dragon fruit, according to varied sources is a kind of
fruit crop that can be grown organically and can be produced in a partially shaded area, it is then a good
candidate crop for the establishment of organic agriculture and integrated and diversified organic tree-
based farming system in support to the campus thrust on agricultural modernization. However, available
sources of information on fertilizer management and multiple cropping schemes integrating dragon fruit
to other crops in location specific areas are still unavailable; hence a part of the production area will be
utilized for simple research activities.

III. OBJECTIVES

Generally, the project aims to establish a Dragon Fruit Production Project for income generation.
Specifically, it seeks to:

1. Establish Production area of Dragon Fruit in a multiple cropping schemes.2.

Pilot the utilization of sub-marginal areas for income generation and maximum utilization of land
resources.

IV. MARKETING ASPECT

The marketability of Dragon Fruit in the locality is expected to be very high because of limited number of
commercial producers of the product. According to survey, there are only 3farm owners cultivating an
aggregate area of around 4 hectares of Dragon Fruit in the municipalities of Gonzaga, Sta. Teresita and
Sta. Ana. Nevertheless, buyers do not feel the abundance of the product because the price remains as
high as 100.00 to 150.00 pesos per kilo. Since the project starts with a micro scale of only two hundred
(200) hills, the immediate market outlet will be the faculty and students and within the municipality of
Gonzaga. In the future, production is expected to rise; hence, marketing strategies and expected outlets
shall be thoroughly examined. When there will be surplus volume of production that cannot be bought
by the usual clients (faculty, students and the community), products will be advertised and sold to the
neighboring municipalities of Sta. Ana and Sta. Teresita and commercial centers within the province as
the case maybe. Should there be good promise for Dragon Fruit processing, production will be
continuously increased and shall be processed at the CSU-DOST Product Development and Training
Center.

V. TECHNICAL ASPECT

The management and technical considerations in Dragon Fruit Production do not require sophisticated
technology. It is a matter of following the desired procedure recommended by experts plus personal
knowledge and interest shall ensure the success of the endeavor.

Technical considerations

Climatic Requirements- Dragon Fruit (Hylocerius undatus), although a member of the family
Cactaceae requires adequate water because they originated from tropical rainforest unlike other cacti
which are of desert origin. It requires around 1.7-2.5 mm of rainfall to sustain good growth and
productivity. Hence, it is very ideal to be grown in most parts of the Philippines including the province of
Cagayan.
 Site Selection- Since one objective of the project is to demonstrate the productivity of selected crops
in sub-marginal areas, the plantation will be established at the stony sub-marginal flat area behind the
administration building of the campus.

Soil Requirements- Dragon Fruit could be grown in wide range of soil types provided it is well-drained.
However, the most ideal soil type is rich in organic matter and slightly acidic. Since the area to be used is
sub-marginal, organic fertilizer will be applied to patch up the lacking amount of organic substances in
the soil.

Selection of Planting Materials and Nursing of Cuttings- Use of asexual propagation is most practical
and cheapest way of propagating dragon fruits. Use of seeds entails longer time to grow and produce
fruit. Besides, the plant is open pollinated and the progeny may not come true to type unlike cuttings
that there is 100% guarantee that your plant will carry the characteristic of the mother plant. Matured
cuttings will be taken from a healthy mother plant just after fruiting season. The entire segment of the
stem should be taken preferably 20-60 cm in length. Cuttings will be pre-rooted or hardened in the
nursery one month before planting in the field.

Land Preparation and Weeding- Since the prospect is to develop production area for dragon fruit in a
multiple cropping scheme, the area will be properly cleared before laying out the plantation area and
placing of posts. Plowing and harrowing in between posts to be planted with desirable intercrop will
follow to prevent growth of weeds.

Trellising- A 4x4 x 2 meter concrete post will be used as trellis. Distance of trellis will be 3 m x 3 m to
accommodate 110 plants per hectare. The 50 cm length of the post will be buried to the ground so that
it will be strong enough to hold around 100 kgs of lateral vines and to withstand adversities brought
about by typhoons and heavy winds. A desirable rubber tire braced with strong iron bar will be anchored
at the top end of the post to serve as agent in forming an umbrella like structure of the hanging vines.

Preparation of Planting Hole and planting - One hole of 20 cm wide and 30 cm depth will be dug
within the four walls of post for planting. One Kilogram of organic fertilizer mixed with top soil will be
placed at the hole properly incorporated and loosened before planting. Pre-rooted/hardened cuttings
will be planted one in each hole and watered immediately to prevent newly planted cuttings from
wilting.

Managing Growing Plants- The plants grow fast and climb in the post in a short period. Damaged on
the growing vines may occur if they will fall on the ground, hence, tying loosely to the post should be
undertaken. Only outer leader vines are allowed to climb the post to ensure vigorous growth. Once the
vines reaches the top of the post just above the rubber tire previously placed, structural pruning should
be undertaken by removing the tip of the main stem to allow growth of new shoots to grow laterally and
climb at the rubber tire to form an umbrella like structure of vines where flowers will emanate and
develop into fruits. The plants could develop around 30 productive lateral stems between its first and
second year. It is expected that thick dense mass of lateral stems will increase to around 130 during the
ensuing years. Excessive number of growing lateral stems will increase the advent of pest and diseases,
hence, desirable number of lateral stems only should be maintained to ensure vigorous growth.

Irrigation- The type of climate in Cagayan is very conducive in the production of Dragon Fruit, hence,
intermittent irrigation will only be done when there will be prolonged dry spell or when the need arises
most specially during the reproductive period of the plants.

Fertilizer Application - Dragon Fruit, like any other crops, requires judicious application of fertilizer for
higher yields. Initial amount of fertilizer to be applied basally before planting will be 1 kg. vermi compost
and 50 grams of urea (46-0-0) mixed with ammonium phosphate (16-20-0) 3 months after planting. Kind
and amount of fertilizer to be applied in the ensuing months will be based on crop stand.

Pests and Disease Control- Dragon Fruit is a kind of crop which is comparatively free of pest and
diseases. Prevalence of common insects like ants, scale insects, mealy bugs and the like will be
controlled through the application of common insecticide. If there will be advent of common diseases
like stem rot and anthracnose, application of desirable fungicide will be administered.

Harvesting- Fruits can be harvested 30 days after fruit set or 40-50 days after flowering. However, if
fruits will be sold within the school populace and within the municipality, harvesting will be done 50
days after flowering to allow the fruit attain its maximum sweetness and weight. It is expected that
there will be deformed or split fruit; hence, they will be processed at the Product Development and
Training Center as added income.

VI. FINANCIAL ASPECT

A. ESTIMATED MATERIAL COST

Item of Expenditure 1st Year 2nd Year 3rd Year 4th Year 5th Year Total

Dragon 12,000.00 - - - - 12, 000.00

Fruit
Cuttings @
15.00 per
piece
vermi 4,800.00 2,520.00 2,646.00 2,778.30 2917.22 15,661.52
compost(50
kgs. per
bag) @
300.00 per
bag
Ammonium 900.00 945.00 992.25 1,041.86 1,093.95 4,973.06
Phosphate
(16-20-0)
@ 900.00
per bag
 Urea (46-0- 1,200.00 1,260.00 1,323.00 1,398.15 1,467.61 6,648.76
0) @
1,200.00
per bag
Complete 1,200.00 1,260.00 1,323.00 1,389.15 1,467.61 6,648.76
Fert. (14-
14-14) @
1,200.00
per bag
Foliar 250.00 262.50 275.63 289.41 303.88 1,381.42
Fertilizer
(Super
Bloom) @
1,000.00
per pack
Fungicide 250.00 262.50 275.63 289.41 303.88 1,381.42
(Dithane)
@ 1,000.00
per pack
Insecticide 500.00 525.00 551.25 289.41 303.88 2762.81
@ 1,000.00
per liter

22,100.00 7,035.00 7,035.00 7,774.09 8,161.90 51,457.69

B. ESTIMATED LABOR COST

(1,800 sq. meter)MD- Man Day 250.00 per MD

Item of Expenditure 1st Year 2nd Year 3rd Year 4th Year 5th Year Total
Clearing 1,000.00 - - - - 1,000.00
Laying-out 500.00 - - - - 500.00
Digging of 5,000.00 - - - - 5,000.00
holes and
placing of
posts: 20 MD
Preparation
of planting 2,500.00 - - - - 2,500.00
holes
including
application
of vermi
composts: 10
MD
Hauling of
planting 1,250.00 - - - - 1,250.00
materials,
 planting and
re-planting:
5 MD
Fertilizer
Application
Control of 1,000.00 1,050.00 1,102.50 1,157.63 1,215.51 5525.64
pest and
diseases 750.00 787.50 819.00 859.95 902.95 4,119.40
Weeding and
Cultivating 2,000.00 2,100.00 2,205.00 2,315.25 2,431.01 11,051.26
Water
Management 1,000.00 1,050.00 1,102.50 1,157.63 1,215.51 5,525.64

Prunning
262.60 551.25 578.81 607.75 2,000.31
Harvesting
Marketing 1,000.00 1,575.00 2,205.00 2,894.06 3,038.76 10712.82
500.00 1050.00 1,653.75 2,315.25 2,431.01 7950.01

Total 16,500.00 7,875.00 9,639.00 11,278.58 11,842.50 57135.08

FIXED COST

Item of Depreciation Cost

Expenditure Total
Life 1st Year 2nd Year 3rd Year 4th Year 5th Year
Span
200 pcs. 20 yrs. 2,500.00 2,500.00 2,500 2,500.00 2,500.00 12,500.00
Concrete
4x4x2m.
@ 250.00
each
40 pcs. 20 yrs. 240.00 240.00 240.00 240.00 240.00 1,200.00
10mm iron
Bar @120
each
200 pcs. 20 yrs. 100.00 100.00 100.00 100.00 100.00 500.00
Used
motorcycle
tire @10.00
each
1 Unit
Knapsack 5 yrs. 500.00 500.00 500.00 500.00 500.00 2,500.00
 Sprayer @
2,500.00
5 pcs
Basket Tray 1 yr. 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 5,000.00
@ 200.00
each
10 pcs.
Wooden
Crate @ 2 yrs. 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 6,250.00
250.00
each

Total 5,590.00 5,590.00 5,590.00 5,590.00 5,590.00 27,950.00

VII. Basic Assumptions:

Production per hill per year in kilos (200 posts)

1st year: 6

2nd year:8

3rd year: 12.5

4th year: 14

5th year: 16 kgs

Price per kilo of Dragon Fruit = 100.00

Labor Cost, Material Cost and price of fruit will increase @ 5% per year

VII. COST AND RETURN ANALYSIS

COST AND RETURN ANALYSIS

Dragon Fruit Production (5 years)

Revenue

Sales of Fresh Dragon Fruit 1,276,713.00Total

Revenue 1,276,713.00

Less: Expenditures

Cash Expenses:
 Cost of Materials 52,457.75
Cost of Labor 57,135.08
Miscellaneous Expenses 16,576.90

Contingency (5%) 6,308.49

Total Cash Expenses 132,478.22

None Cash Expenses

Depreciation 27,950.00

Total None Cash Expenses 27,950.00

Total Expenses 160,428.22

Net Income 1,116,284.78

Net Profit Margin 87 %

PROJECTED INCOME STATEMENT

Dragon Fruit Production

Year 1 Year 2 Year 3 Year 4 Year 5

Sales: 120,000.00 168,000.00 275,625.00 324,128.00 388,960.00
Sales of Fresh Dragon Fruit
TOTAL SALES 120,000.00 168,000.00 275,625.00 324,128.00 388,960.00
Less: Expenditures
Cost of Materials 22,100.00 7035.00 7,386.76 7,774.09 8,161.90
Cost of Labor 16,500.00 7875.00 9,639.00 11,278.58 11,842.50
Miscellaneous 3000.00 3150.00 3,307.50 3,472.88 3,646.52

Contingency (5% 2,080.00 903.00 1,016.66 1,126.28 1,182.55

Depreciation 5,590.00 5,590.00 5,590.00 5,590.00 5,590.00
TOTAL CASH EXPENSES 49,270.00 24,553.00 26,939.92 29,241.83 30,423.47
NET INCOME 70,730.00 143,447.00 248,685.08 294,886.17 358,536.53
NET PROFIT MARGIN 59 % 85% 90% 91% 92%

PROJECTED CASH FLOW

Dragon Fruit Production

 1 2 3 4 5
CASH INFLOW
Sales: 120,000.00 168,000.00 275,625.00 324,128.00 388,960.00
Sales of Fresh 120,000.00 168,000.00 275,625.00 324,128.00 388,960.00
Dragon fruit
TOTAL CASH
INFLOW

CASH
OUTFLOW

Cost of 22,100.00 7,035.00 7,386.76 7,774.09 8,161.90

Materials
Cost of Labor 16,500.00 7,875.00 9,639.00 11,278.58 11,842.50
Miscellaneous 3,472.88
3,000.00 3,150.00 3,307.50 3,646.52
Contingency (5 2,080.00 903.00 1,016.66 1,126.28 1,182.55

TOTAL CASH 43,680.00 18,963.00 21,349.92 23,651.83 24,833.47

OUTFLOW

CAS SURPLUS
(A-B)
OPENING 0 76,320.00 00 225,357.00 479,632.08 780,108.25
BALANCE
CLOSING 76,320.00 225,357.00 479,632.08 780,108.25 1,144,234.78
BALANCE

VIII. SOCIO-ECONOMIC AND ENVIRONMENTAL IMPACT

Demonstrate adoptable technology in Dragon Fruit Production as on-farm laboratory for students and
other stakeholders.

Promote the utilization of sub-marginal areas for productive endeavor.

The production endeavor is environment friendly and helps mitigate climate change.