CHAPTER I

EXECUTIVE SUMMARY

A. Name of the Business: Bahay Tubo Sugarcane Producers

Brand name plays an important role in the growth and perception of a

business. It is the first thing that the customers will see and it reflects everything a

business is about, so making a powerful impact immediately is a necessary key to

branding success. The proposed business will be named “Bahay Tubo Sugarcane

Producers”. The name bahay tubo is derived from the Philippine national house

“nipa hut” or “bahay kubo”. Also, it is a title of a Filipino song that discuss the

different vegetables that can be cultivated in the Philippines. Aside from that, we

chose “Bahay Tubo” because “house” simply symbolizes the safe environment

where the sugarcane or tubo will be farmed and harvested, and to make sure that

the sugar that are served to you came from our best sugarcanes.

B. Title of the Study: A Feasibility Study on the Cultivation of Sugarcane

C. Farm Location

The farm is located in Nasugbu, Batangas. The whole land is full planted

for sugarcane. Each harvest takes one truck and the farm is at least one and a half

hour to the mill. The farm has a lot area of six (6) hectares or sixty (60) square

meters.

1
 D. Description of the Logo

Along with the business name that makes your business memorable is the

business logo, which is also a necessity as it serves as the identity of the product

or services you are offering. Therefore, we came up with a logo that represents

our business that will surely give the customers the idea of legitimacy.

2
3
4

1. Circle - A circle is placed around the logo to represent the immeasurable

trait of the business.

2. Leaves – The sugarcane is placed with crown-shaped leaves representing

the superior quality of the products that the firm will produce.

2
 3. House – The house symbolizes a safe environment where sugarcanes will

be farmed and harvest.

4. Sugarcane – It simply represent the main product of the business.

5. Hand – The hand gesture in the logo represents a friendly relationship

from the firm to all the customers. Also, it symbolizes that we have gone

all the legal processes and our sugarcanes is authorized by the government

to be supplied in different mills.

E. Project Summary

a. Market Summary

Usually, the commercial crop can be transported to local sugar

mills. The sugar mills and refiners around Batangas will be our target

market since it is where the most convenient and easiest way to

transport the sugarcanes from our farm. The mills will buy sugarcane

from us, which is used in producing sugar, for them to process and

produce white or raw sugar.

However, we are willing to expand the distribution of

sugarcanes from the different mills and refineries within the

CALABARZON region if our means permit it to do so.

3
b. Technical Summary

Sugarcane production begins with choosing the right varieties of

cane to be planted which is appropriate to the soil and climate. It

ensures productivity and resistance to disease. The use of fertilizers is

limited since the solid residues from sugarcane processing such as

filter cakes, that is recovered from the mill and used as organic

organizers, are used in the fields to balance traditional fertilizers.

Sugarcane stalks, developed especially for use as seedlings, are

scattered over the soil by planting machines. The seeds are actually the

clumps of sugarcane. As it's pulled by a tractor, the machine opens a

groove, separates the clumps, and places them in the soil. Another

residue of sugarcane processing, vinasse, are often carried by the canal

systems to numerous points in the cane field. When the cane reached

its full maturity, harvesting takes place. It can be both done manually

or mechanically but in mechanized harvesting, it eliminates the need

of sugarcane straw to be burned. After the straw is separated by the

machine and left on the ground, the cane is chopped and deposited in a

vehicle and to be transported to the mill for processing. Manual

harvesting, on the other hand, is carried out by agricultural field

workers. The straw is burned first before the manual cutting takes

place. Burning is essential because it drives away snakes and other

4
 potentially poisonous animals that makes it easier for the workers. Axe

are used to cut the cane stalks always close to the ground.

c. Management Summary

Bahay Tubo Sugarcane Producers is a partnership form of

business ownership. All partners will be considered as capitalist and

the business will hire ten (10) staffs for the start of the business. The

following would be one (1) General Manager, one (1) Land Caretaker,

and six (6) farmers. The caretaker is to cater the daily needs of the land

and somehow the farmers, who are responsible to work on the

cultivation of sugarcane. The other two (2) will be in charge of

delivering the sugarcanes to the mills, one being the driver and the

other is the helper of the driver.

d. Financial Study

The initial cost of starting this small sugarcane plantation

business is an equal contribution of two hundred and fifty thousand

pesos (Php 250,000.00) by six (6) partners garnering a total of

approximately one million and five hundred thousand pesos (Php

1,500,000). It is inclusive of the land, transportation expense, utility

expense, salary expense, equipment expense, fertilizers and the overall

materials that are used.

e. Socio-Economic Study

5
 Along with the main goal of the business to earn profit, is to

provide benefits both socially and economically. The Philippine sugar

industry is the country’s oldest and leading export earner. Regarding

that, it will increase our GDP because of exports and it will provide

jobs for millions of sugar workers. Bahay Tubo Sugarcane Producers

will offer job opportunities depending on their educational attainment.

6
 CHAPTER II

INTRODUCTION

The Philippines is very rich when it comes to agriculture, thus their economy is

largely dependent on it. It is one of the world’s “mega biodiversity” countries, rich in

both fauna and flora. Forestry, and fishing, as well as livestock production and cultivation

of crops plays a big role to the country’s growth domestic product.

Cultivation of crops is common here in the Philippines since one-third of the total

land area is classified as arable. Seventy five percent (75%) of the cultivated area is

devoted to subsistence crops and the rest to commercial crops, mainly for export. This

agricultural industry is known to be highly profitable business in the country. Therefore,

skills and sufficient knowledge is a must to be successful in this field.

The Philippines is one of the largest sugar producer in the world. It has a high

range of demand all over the world simply because it serves as a condiment, which is a

spice that is added to food to enhance its flavor that comes mainly from sweet grass or

commonly called as sugarcane. In this feasibility study, we have chosen sugarcane

farming as our proposed business.

The price of sugar is unaffected by whatever developments in the world, so

supply for sugar is still in demand and that means good investment for our sugar industry,

7
whether for planters, millers or distributors. Sugarcane is one of the major crops of the

Philippines and is cultivated in 19 provinces across the country. Sugarcane production

has been around for decades that is why it is known to be highly desirable and profitable.

A. Background of the Study

Sugarcane (Saccharum officinarum) is a tropical grass native to Asia

where it has been grown for over 4,000 years. The Philippines is one of the largest

sugarcane producers in the world. The cane plant form of grass, which belongs to

the Poaceae family, that is often referred as sweet grass. The stem of the

sugarcane produces a high sugar content that is used to make one of the basic

commodities, sugar. Also, it is a source of other products such as ethanol.

The business proposed is focused on establishing a sugarcane farm for

cultivating superior quality and efficient sugarcanes. Since Batangas has the

climate of warm and sunny, it is suitable for growing sugarcane. A well-drained

and fertile land with adequate rainfall during the wet season is an ideal condition

in planting sugarcanes. It will serve as a distributor in different mills around

Batangas for the mean time. Then eventually, expand the sugarcane supplies in

the mills in located at the CALABARZON region and different sugarcane juice

businesses. Since, one of its objectives is to expand their sugarcane supplies in

different sugar mills throughout the region in the near future.

8
B. Objectives of the Study

The business is aiming to be on top of the sugarcane industry and to

produce and supply excellent sugarcanes. The following objectives are to make

sure of the high-quality standards of the business:

 To expand a new market

 To increase market shares

 To promote rapid and sustainable growth based on smallholding.

 To increase market sale yearly by 10%.

 To create a safe self-employment with an above average wage that

will improve the quality of life.

 To reach yearly target sales.

 To expand sugarcanes supplies in different sugar millers

throughout the region.

C. Operational Definition Terms

 Cane – any various tall, perennial grasses with flexible, woody stalks.

 Climate – the weather conditions prevailing in an area in general or in a

long period.

 Clumps – a compacted mass or lumps of something.

 Capitalist – a wealthy person who uses money to invest in trade and

industry for profit in accordance with the principles of capitalism.

9
 Cultivation – an action cultivating the land.

 Fragmentation – the process or state of breaking or broken into small or

separate part

 Humidity – the state or quality of being humid

 Irrigation – is the method in which a controlled amount of water is

supplied to plants at regular intervals for agriculture.

 Implement – put into effect

 Fauna – the animals of a particular region, habitat or geological period

 Flora – the plant life occurring in particular region or time

 Legitimacy – conformity to the law or to rules

 Mega biodiversity – group of countries that harbor the majority of the e

earth’s species and high numbers of endemic species.

 Maximum Profit – short run or ling run process by which affirm

determines the price and output level that returns the greatest profit.

 Mills – manufacturing facilities categorized by their power.

 Pesticides – a substance used for destroying insects or other organisms

harmful to cultivated plants or to animals

 Ratooning – is a method of harvesting crops which leaves the roots and

the lower parts uncut to give the stubble crop; its purpose is to mature the

crop earlier the season.

10
D. Scope and Limitations

Bahay Tubo Sugarcane Producer is focused on sugarcane cultivation and

production for the meantime, since one of the objectives of every businessmen is

to expand their business. The farm will be located at Nasugbu, Batangas and will

be available for expansion when the owners’ means permit it to do so. It is owned

by six partners and each have a specific role in running the business.

11
 CHAPTER III

MARKET STUDY

The heart of every business success lies within the marketing strategy. Marketing

is the process or technique of promoting, selling, and distributing a product or service.

Also, it is a way of informing the people what is the business all about and the products

and services they sell.

Market study helps in all parts of the business, either financial aspect or the

making itself. It is important to know the strength and the weakness of the firm to avoid

losses and prevent bankruptcy.

This chapter is consisting of demand, supply, the gap analysis of demand and

supply, marketing strategies and market shares.

12
A. Methodology
The associates used different methods of data collection. This study

implements both primary and secondary data sources for us to have background

and enough idea in the business operations, industry and market, and so on. Also,

it contributed a lot to the objectives and helped generate an effective marketing

strategy.

a. Interview

The partners decided to conduct an interview as well as

observations to the residents, refineries, mills and farms in Batangas as

instrument for data collection. We provided some questions pertaining

on the investment and process of the business of sugarcanes which are

the farmers and another set of interview questions regarding

consuming sugarcanes which are the residents and mills. With these,

we can obtain necessary information needed for the business.

b. Research

Aside from the internet which contributed a lot in

understanding how we will run the sugarcane cultivation business, the

partners will collect information from the Municipality of Batangas, as

well as in the Philippines Statistics Authority (PSA) and Sugar

Regulatory Administration (SRA) of the Philippines. The secondary

13
 data will be very instrumental in gathering information for us to

further understand the demand and supply, and its competitors.

B. Demand
The significance of getting the demand in this feasibility study is for us to

know how many consumers have the ability and is willing to buy the sugarcanes.

Also, demand analysis is very essential to make forecasting possible.

a. Previous Demand

Table 1. Demand of sugarcane in Batangas, 2012-2016

Demand of Sugarcane in Metric Tons

Year
(milling days x milling capacity per day)
2012 2,880,000
2013 2,880,000
2014 2,880,000
2015 2,880,000
2016 2,880,000

Source: Sugar Regulatory Administration

Central Azucarera Don Pedro has a milling capacity of 16,000 metric tons per day

14
 b. Projected Demand

The projected demand was derived from the historical data

gathered from the Sugar Regulatory Administration to be more

accurate in forecasting the data. The computed data is shown in the

table below.

Table 2. Projected demand of sugarcanes in Batangas’ Mills

YEAR DEMAND
2017 2,880,000
2018 2,880,000
2019 2,880,000
2020 2,880,000
2021 2,880,000

15
C. Supply

Supply is a necessity for the business for them to meet the demands of the

consumers. Also, it is needed in determining the firm’s market share after

knowing the gap between the demand and supply.

a. Previous Supply

Table 3. Previous supply of sugarcane in Batangas, 2012-2016

Supply of Sugarcane
Year
(in metric tons)
2012 1,549,424
2013 1,607,612
2014 1,638,400
2015 1,645,689
2016 1,655,307

Source: Sugar Regulatory Administration

16
 b. Projected Supply

Table 4. Projected supply of sugarcane in Batangas’ mills

YEAR SUPPLY
2017 1,667,979.832
2018 1,678,865.34
2019 1,722,407.38
2020 1,765,949.42
2021 1,809,491.46

D. Demand and Supply Gap Analysis

Identifying the gap between the demand and supply projected is necessary.

It shows the unsatisfied market as well as the available market that can be

accommodated by our supply. The demand must always be dominant over the

supply. If not, then the business will not be feasible. It is attained by subtracting

the projected supply from the projected demand.

Table 5. Demand and Supply Gap

YEAR DEMAND SUPPLY DEMAND GAP

2017 2,880,000 1,635,323.302 1,247,676.70
2018 2,880,000 1,678,865.34 1,201,134.66
2019 2,880,000 1,722,407.38 1,157,592.62
2020 2,880,000 1,765,949.42 1,114,050.58
2021 2,880,000 1,809,491.46 1,070,508.54

17
E. Market Share Analysis

a. Market Share

To obtain the market share, the projected sales to our demand

and supply gap from 2017 until 2021.

Table 6. Market Share Analysis

Production
Year Demand Demand Gap Market share
Capacity

2017 594.12 2,880,000 1,247,676.70 0.00020629

2018 690.66 2,880,000 1,201,134.66 0.00023981

2019 796.26 2,880,000 1,157,592.62 0.00027648

2020 910.54 2,880,000 1,114,050.58 0.00031616

2021 1,032.9 2,880,000 1,070,508.54 0.00035865

18
F. Market Segmentation

Geographic

Location : Nasugbu, Batangas

Climate : Tropical

Region : Region IV CALABARZON

Density of the Area : Rural

G. Marketing Strategies

a. Product Strategy

Providing one of the basic commodities on the market such as

sugar, which came from sugarcane, is no doubt a very good business to

start. That is why it is our responsibility to produce high-quality

sugarcanes to have a high-quality sugar in the markets. Sugarcane crop

can be grown in a wide range of soils yet we must make sure that it is

suitable for cultivation. Also, we will supplement the soil with well-

decomposed farmyard manure and other fertilizers. Proper irrigation

will be managed for the sugarcanes to be healthy enough and since

sugarcane crop is prone to disease and pests, although we will be

having pesticides, we will still coordinate with our local department of

agriculture for best source of pest control solution. Also, proper

19
 sanitation will be observed not only for the sugarcanes but also for the

people working and those around the area.

b. Place Strategy

The farm will be six (6) hectares capable of producing 50

kilograms of sugarcanes which is equivalent to 80 bags of sugar. The

place has its own proper disposals for waste, and sanitations. A storage

for farm tools and equipment, a parking lot for delivery vehicles and a

storage room for the sugarcanes.

H. Competitors

Competitors are threat to every business. It affects the demand of the

product.

Since one of the major crops of Nasugbu, Batangas is the sugarcane and

Azucarera de Don Pedro is the main consumer, a lot of farmers chose to plant it.

Our main competitors are the farms that are old in the industry. Since they are

veterans in handling this kind of business

I. SWOT Analysis

a. Strengths

 The Philippine sugarcane industry is well-organized, as well as

the Bahay Tubo;

20
  Active participation of the firm to the socio-economic welfare

of the farmers and workers through the social amelioration

program;

 Presence of Mill District Development Council Foundations

Inc. in every milling district which takes care of program

implementation.

 The crop is not sensitive to the climate

b. Weaknesses

 Fragmentation of farms due to CARP resulting to inefficient

and unproductive farms;

 Lack of machineries and technologies that will make

harvesting faster and easier;

 Unwanted plants are growing beside the sugarcane and

competing with its nutrients

c. Opportunities

 Provision of a Sugar Fund for the sugarcane industry through

passage of the Sugarcane Industry Development Act;

 Infrastructure support from the Philippine Development Plan

21
  More investments in product diversification like bioethanol,

power generation and other diversified products from

sugarcane;

 Emergence of mill/farm support / fabrication industries and

service providers;

 Transformation of block farms as agribusiness units in the mill

districts;

 Creation of sugarcane ecozones;

 Global decline of sugar surplus;

d. Threats

 Farmers’ shift to other crops or business activities due to lack

of subsidy and infrastructure support from government in

sugarcane farming;

 Land conversion to industrial / commercial estates due to the

absence of a national land use policy;

 Policy shifts of government like imposition of VAT on raw

sugar and unstable bioenergy policies which may discourage

more investments in the sugarcane industry.

 Other suppliers of sugarcane competitors

22
 CHAPTER IV
TECHNICAL STUDY

After dealing with the demand and supply, we will be now focusing on the

technical study. The technical aspect of a feasibility study discusses the necessary

expertise in business, infrastructure, capital, operations and maintenance.

Objectives:

 To identify the kind of business and the proposed process of cultivating sugar

canes.

 To illustrate the geographic location of the business.

 To determine the needed supplies and equipment for the business to operate and

where to acquire them.

 To define human requirements and regulations of the business.

 To know how these products are obtained and how it is distributed in the market.

23
A. Product Description

Sugarcane is a tropical and subtropical grass that forms lateral shoots at

the base to produce multiple stems then the stem grows to cane stalk. It is the

main source of sugar, which is one of the basic commodities. Also, it provides raw

material for manufacturing alcohol and the parts of sugarcane is being used as

fodder for animals. As sugar, has worldwide demand, one can make decent returns

in commercial sugarcane cultivation.

a. Climate Requirement for Sugarcane Cultivation

Sugarcane can be grown as tropical and subtropical crop and

grows where temperature ranges from 20 degrees Celsius to 42

degrees Celsius. Sugarcane crop responds well to long period of

sunlight and high humidity. Thus, Sugarcane crop can be cultivated all

along the year, making sure that irrigation of water is available.

b. Soil Requirement for Sugarcane Cultivation

Sugarcane crop can be grown wide range of soils as it tolerates

most of the soils as long as there is enough moisture content available

in the soil. However, deep rich loamy soils are best for its growth and

yields. Also, good water drainage is most suitable for sugarcane crop.

24
 c. Yield in Sugarcane Cultivation

Yield of the sugarcane depends on the type of soil, irrigation

and fertilizers input.

d. Marketing of Sugarcane

The commercial crop is usually transported and distributed to

local sugar mills

B. Cultivation Process

a. Land Preparation

Land preparation is an important task in sugarcane cultivation

as this crop stands in the field for more than one year. With the help of

a tractor, land should be given 2 or 3 deep ploughing. Soil should be

levelled for seed bed preparation. The land takes 1 to 2 days of

preparation before planting.

b. Propagation, Planting and Spacing

The propagation in sugarcane cultivation is done through

vegetative cuttings of matured cane called “setts”. A few days before

the cuttings are collected; the end of the canes should be removed to

break the apical dominance of the cane. Furrow method is one of the

popular methods followed in sugarcane cultivation. Sugarcane setts

25
 should be planted horizontally or at an angle of 45 degrees in furrows

at 15-30cm depth.

c. Ratooing

Ratooning is a practice of growing a crop from the subtle of a

previous crop. The advantage of ratooning is saving cost on

preparatory labor and planting material. Aside from that, ratoon crop

matures earlier and gives same yield as regular sugar planting. Yet, the

disadvantage is that only one ratoon should be taken because incidents

of pests and diseases and the deterioration of soil.

d. Irrigation

Satisfactory humidity throughout the growing period is

important for obtaining maximum yields. Like any other vegetative

growth, cane growth is directly proportional to the water transpired.

Furrow irrigation is most commonly used and is particularly effective

for early plant crop. In later crop, during the growth period and

ratooning, water distribution may become increasingly problematic

due to the weakening of furrows. Also, alternate furrow irrigation

method should be followed for better utilization of water resources.

In case of tropical, irrigation should be given as follows:

26
  Once in 7 days during germination stage, 1-35 days

after planting.

 Once in 10 days during formative stage, 36-100 days

after planting.

 Once in 7 days during growth period, 101-270 days

after planting.

 Once in 15 days during maturity stage, 271 days after

planting and up to harvest phase.

*Irrigation water is applied only in an extremely dry situation but

depth of application is reduced

e. Manures and Fertilizers

Sugarcane is a long durational and heavy feeder crop thus;

manure requirement is very high. A well-decomposed farmyard

manure of 30 tonnes/ha should be added as part of the land

preparation. The table below shows the seasonal plantation of manures

and fertilizers.

27
Table 7. Fertilizer Dose for Seasonal Plantation

When to Apply N (kg) P (kg) K (kg)

During the time of planting 25 62 62
6-8 weeks after planting 100 - -
8-12 weeks after planting 25 - -

20-24 weeks after planting 100 63 63

TOTAL APPLICATION 250 125 125

f. Intercultural Operations

For higher yields, regular and proper intercultural operation

must be observed in sugarcane cultivation.

 Weed Control

The possibility of weed growth is very high

specially when the sugarcane crop is grown under

abundant water. These weeds share the nutrients and

fertilizers that is provided to the main crop that is why it

is important to control these weeds. Hoeing and weeding

would be helpful and application of pre-emergence

weedicides.

 Crop Rotation

To control the growth of weeds and to enrich the

soil fertility, crop rotation is necessary. In areas where

28
 more rainfall is possible, sugarcane can be rotated with

rice while for those low rainfalls it can be rotated with

cotton crop. Other products like banana and turmeric,

soybeans can also be rotated with sugarcane.

g. Harvest

Sugarcane is long duration crop and should be harvested at

right maturity level. It took a year before you can harvest a fully

matured sugarcane crop. Both traditional and mechanical ways of

harvesting can be used depending on the availability of the equipment.

Before cutting the crop, make sure that the irrigation has stopped 2

weeks before. Canes should be cut diagonally at ground level; dry

leaves should be removed from the cane and roots. After harvesting,

make bundles and crush them in the machines after 24 hours to avoid

deterioration of sucrose into glucose.

C. Plant Size, Project Schedule and Production Schedule

Plant size and production schedule are important to determine the

size of the land that will use for business and the operating time table for

the completion of the requirements in manufacturing the product.

29
 The farm size of the business measured a lot area of 6 hectares or

60, 000 square meters, consisting of 10-meter road and 18 by 12 feet

storage house.

Table 8: Project Schedule

ACTIVITIES MONTH
2016 2017
NOVEMBER DECEMBER JANUARY FEBRUARY
24 to 29 1 to 23 27 to 31 3 to 31 1 to 15
GATHERIING OF
DATA FOR
FEASIBILITY STUDY
CAPITAL
CONTRIBUTION
PROCESSING AND
FILING OF LEGAL
REQUIREMENTS
CONSTRUCTION OF
FARM
PURCHASING AND
INSTALATION OF
EQUIPMENT
HIRING AND
TRAINING OF
EMPLOYEE
PREPARING ALL THE
MATERIALS NEEDED
FOR THE
OPERATION OF THE
BUSINESS
START OF THE
BUSINESS
OPERATION

30
Table 9: Production Schedule

2 FEB APR JUN AUG OCT DEC

0
PLANT 80 PLANT 80 PLANT 80 PLANT 60 PLANT 80 PLANT 80
1
BAGS BAGS BAGS BAGS BAGS BAGS
7
2 FEB APR JUN AUG OCT DEC
HARVEST, HARVEST, HARVEST, HARVEST, HARVEST, HARVEST,
0
PLANT PLANT PLANT PLANT PLANT PLANT
1
SELL 80 SELL 80 SELL 80 SELL 80 SELL 80 SELL 80
8 BAGS BAGS BAGS BAGS BAGS BAGS
2 FEB APR JUN AUG OCT DEC
HARVEST, HARVEST, HARVEST, HARVEST, HARVEST, HARVEST,
0
PLANT PLANT PLANT PLANT PLANT PLANT
1
SELL 80 SELL 80 SELL 80 SELL 80 SELL 80 SELL 80
9 BAGS BAGS BAGS BAGS BAGS BAGS
2 FEB APR JUN AUG OCT DEC
HARVEST, HARVEST, HARVEST, HARVEST, HARVEST, HARVEST,
0
PLANT PLANT PLANT PLANT PLANT PLANT
2
SELL 80 SELL 80 SELL 80 SELL 80 SELL 80 SELL 80
0 BAGS BAGS BAGS BAGS BAGS BAGS
2 FEB APR JUN AUG OCT DEC
HARVEST, HARVEST, HARVEST, HARVEST, HARVEST, HARVEST,
0
PLANT PLANT PLANT PLANT PLANT PLANT
2
SELL 80 SELL 80 SELL 80 SELL 80 SELL 80 SELL 80
1 BAGS BAGS BAGS BAGS BAGS BAGS
2 FEB APR JUN AUG OCT DEC
HARVEST, HARVEST, HARVEST, HARVEST, HARVEST, HARVEST,
0
PLANT PLANT PLANT PLANT PLANT PLANT
2
SELL 80 SELL 80 SELL 80 SELL 80 SELL 80 SELL 80
2 BAGS BAGS BAGS BAGS BAGS BAGS

31
D. Machinery and Equipment

Table 10. List of machinery and equipment

Unit Total
Description Function Quantity
Cost Cost

Land
1 2500 2500
Preparation

Plow

Digging land 6 600 3600

Shovel

For cutting
weeds and 6 500 300
sugarcane

Bolo Knife

32
 For scrubbing
6 150 900
dirt and debris

Scrub Brush

For digging up
small holes and
6 300 1800
mixing
fertilizer

Trowel

For carrying
3 1500 4500
loads

Wheelbarrow

33
E. Plant Location

Sitio Halang, Brgy. Katandaan Nasugbu, Batangas

34
F. Plant Layout

35
G. Raw Materials and Supply

Raw materials are used for starting our business. In starting the sugarcane

farming we need “Taad” it serves as the seed to have and to grow sugarcane.

“Taad” cost two thousand (2000) pesos per sack. Another raw supply we need is

the fertilizer. The fertilizer we are going to use is Ammonium 2100. Ammonium

2100 cost five hundred fifty pesos (550) pesos per sack. In one (1) hectare we

need to use twelve (12) sacks of fertilizers. All of the raw materials can be found

in Nasugbu, Bayan. It serves as their supplier in maintaining the sugarcane farm.

We will also use one long table and six chairs for our office. It only cost

(9,999) pesos for the whole set.

H. Utilities

Electricity, water and telephone are all important in operating a business.

It helps in everyday service of the business. BATELEC II (Batangas II Electric

Cooperative, Inc) will provide the power supply in the farm, warehouse and

offices. Emmanuel Water Works will be the one to supply water that will be used,

not only for the crop, but also for cleaning the environment to maintain the

cleanliness and proper sanitation purposes. The telephone to be used in

communicating to the customers, transacting to the suppliers, as well as the

handling of company affairs will be provided by PLDT (Philippine Long-Distance

Telephone). Additional to that is the delivery vehicle of the sugarcane from the

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farm to the respective sugar mills. A truck will serve as the business’ delivery

vehicle.

I. Waste Disposal

Waste management is the collection, recycling and monitoring of wastes.

In the sugarcane farm after the first harvest, farmers will cut out the matured cane

called “setts”. The end of the canes should be removed to break the apical

dominance of the cane and then the farmers will set aside the removed parts into

the sidewalks wherein the herbivore animals like cow, goat and carabao will eat it.

While the ashes after the burning of the sugarcane will just blew by the wind.

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 CHAPTER V

MANAGEMENT STUDY

Management is also necessity in starting a business. This empowers the business

to achieve its goals and objectives. It must consist of the overall implementation of plan

including the proper utilization of manpower and human resource to attain anticipated

results. This section includes the form of ownership, and the project schedule. The

management aspect of this study determines the effectiveness of the plan and the

efficiency of people who will run it. Therefore, the success or the failure of the business

is dependent on the management.

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A. Form of Ownership

The form of ownership of the proposed business is a partnership. The

business will be registered under Securities and Exchange Commission (SEC) for

the contract called article of partnership. By the contract, it is state that

partnership is a contract between two or more persons that contributes money,

property and industry with the intension of dividing the profits among themselves.

Bahay Tubo Sugarcane Producer will be registered under different

agencies for it to function legally after all the required documents and permits are

acquired and submitted.

B. Vision and Mission

a. Vision

To become a leading producer of sugarcane in the

CALABARZON region and to be the most preferred choice of sugar mills

for its excellent quality.

b. Mission

 To maintain a stable and well-managed business from the

viewpoint of the consumers, suppliers, and competitors.

 Engage the locals in the vicinity of the farm by providing jobs.

 To make sure that the clients together grow with us and commits

ourselves into refining relationship with them

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 C. Capitalization

Table 11. Table for Capitalization

Partners Type of Partner Capital Source of Capital

Cash Payments from

Rentals and Personal
Alexandrea Aldanie Capitalist Php 250,000
Savings

Cash Payments from

Rentals and Personal
Arvin Arguelles Capitalist Php 250,000
Savings

Marychael Paed Industrialist–Capitalist Php 250,000 Sale of Land

Charmaine
Industrialist–Capitalist Php 250,000 Personal Savings
Santiago

Jennilyn Toledo Industrialist–Capitalist Php 250,000 Personal Loan

Camille Tolentino Capitalist Php 250,000 Cash from Parents

Total: Php 1,500,000

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 D. Organizational Structure

The firm will be using a functional organizational structure which is

recommended for small firms or to those businesses that focus on small product

or service. Functional structure is divided into a smaller group of people with their

common specialty. Respective jobs of the employees can be done easily because

there will be a leader to be followed and each subordinate have their own task to

be done. Aside from being appropriate to the business, we chose this structure

because it can help each group to improve their works since they have the same

skills. They can operate independently and can increase specialization through

their fields.

Figure 1. Organizational Chart

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E. Manpower Requirement

It is essential to know the manpower requirements to help the business

gain its maximum profit. According to Division of labor, it is essential to divide

the task to the persons who is specialize of doing it or to assign of different parts

of a manufacturing process or task to different people in order to improve

efficiency. We will look for three positions. General manager, operations manager

and farmers/land caretakers. Setting a standard manpower will help determine if

the person is capable in a certain position, thus it will avoid incompetent workers

and will establish efficient business operations.

a. General Manager

i. Duties

 In charge of the overall supervision of the farm and motivating

the team of workers.

 Making sure that the products is produced on time and are in

good quality.

 Ensures that the safety guidelines and health rules are followed

 Works to implement the company’s objectives and policies

ii. Qualifications

 Must be a graduate of business management course

 Knowledge on agricultural cultivation

 Expertise in production management and strong negotiable

skills

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  Capable to work hands-on the location and is willing to spend

considerable amount of time on the work

iii. Salary

 Php 10,000/month

b. Farmers/Land Caretakers

i. Duties

 Responsible for the healthiness of crops

 The acting hand of the farm

 In charge of the maintenance in the farm

 Capable of working under the sun and willing to spend

considerable amount of time on the field work

ii. Qualifications

 Must be 18 years old and above

 Physically fit

 Capable and willing

 Trustworthy and hardworking

iii. Salary

 Php 4,500.00/month

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 c. Driver and Helper

i. Duties

 Transports the sugarcanes from the farm to the mills

 Obliged to follow traffic regulations

 Must handle the vehicle and sugarcanes with care

ii. Qualifications

 Must possess a professional’s driver’s license

 Able to drive in risky conditions and unusual hours

 Hardworking and trustworthy

 Physically fit

 Capable and willing

iii. Salary

 Php 400.00/deliver

F. Compensation

a. Salaries and Wages

 The managers shall receive their respective salary every 15 th

and 30th days of the month.

 The land caretakers or farmers will receive their salary every

the end of the week.

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  The driver and helpers will receive their salary after every

delivery.

b. SSS/PHIC/HDMF Benefits

The benefits that will be received from SSS/PHIC/HDMF will be

granted with regard to the current applicable laws.

c. Overtime Pay

If the employee exceeds in the number of hours designated for

work, then he or she shall be granted an overtime pay depending on the

number of hours.

d. Incentives and Rewards

Certificates and awards of recognition shall be granted to the most

deserving employees.

G. Employment Process

 Aspiring applicants will be passing course vitae to the firm’s manager.

 The manager will analyze the vitae and will urgently contact the

applicant for an interview if he or she is qualified for the position

applied.

 If the applicant passed the interview, a list of the requirements to be

fulfilled is given and should be accomplished within a specific period

of time.

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  When the applicant complied with all the requirements, he or she will

be oriented and subjected to be trained regarding the business

operation which is a two-week on the job evaluation.

 If the applicant performs well and passed the on the job evaluation,

then he or she will be hired.

H. Organizational Policies and Procedures

This part indicates the major and specific policies of the firm.

Organizational policies and procedures are needed for the firm to operate well.

Organized firm will lead to successful and efficient operation of the business.

a. Employment

Employee/s are hired based on their health, age, mental aptitude,

and their experience or background in doing the business. Before the

employee/s are hired he or she must be interviewed by the manager and

examined his or her knowledge by practical exam. After the employee/s

passed all the screening process he or she must comply to the requirement

of the firm for pre-hiring process.

 Employment Requirements

i. 2 x 2 Picture (2 pcs.)

ii. SSS Number (photocopy of E1 form)

iii. Tin Number (Photocopy of Form 1902)

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 iv. Photocopy of Birth Certificate from NSO

v. NBI Clearance or Police Clearance

vi. Barangay Clearance

vii. Mayor’s Permit

viii. Cedula

ix. Health Card

x. Diploma and transcript of records

xi. Certificate of employment (if recently employed)

xii. Clearance from recent employer

xiii. Medical clearance

xiv. PAG-IBIG Number

xv. PHILHEALTH number

b. Classification of Employees

 According to Rank:

i. Manager/s – the person/s with leadership skills who were

given power to hire or accept employee/s by screening

process, to train a newly hired employee, to discipline

employee/s’ job negligence, to orient the employee in their

specific job position, to execute orders given by the head of

the company, and to report all unnecessary and violation act

of the employee in the firm.

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 ii. Supervisor – an individual who will routinely observed and give

reports to the manager.

iii. Rank-and-file employees – are those employees who don’t

acquire high level position in the business

 According to Status

i. Contractual and Seasonal – these types of employee/s

are hired in need for specific season or time based on

the agreed contract.

ii. Regular – an individual who completed all levels of

education, passed all professional requirements, and had

experienced in doing the same job position.

c. Orientation

After the employee/s were hired he or she should learn and apply

the organizational rules and procedures of the firm by orientation.

Orientation were given by the head of the company to teach the newly

hired employees for their respective job position and duties, the do’s and

don’ts of the company, and all rules including the punctuality of all the

employees of the firm.

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 d. Contract

All employees are important to have and to agree in contracts after

complying with all the requirements of the firm. Contract will serve as

proof that you are willing to follow the terms and conditions in operating

the business.

e. Work Schedule

Table 13: Working Schedule

POSITION NUMBER OF PEOPLE NUMBER OF WORKING HOURS

General Manager 1 8

Driver and Helper 2 Contractual

Caretakers 1 8

Farmers 6 Contractual

e. Punctuality

All employees must and strictly required to follow the working hours

assigned by the head of the company to avoid mistakes in the company’s

plan and action and if the employee must leave for reason, he or she must

notify the head or manager in charge by presenting a personal letter.

Employee/s who violated the business hours that was given to them must

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 comply to the following: first and second late or absent without leave, will

write an incidental report. All reason why the employee was absent

without the consent of the head or late must be written in the incidental

report. Three consecutive tardiness and absences of employees will be

given showcase by the head. Showcase is a personal professional message

by the employee; he or she must write all the reason why he should not be

terminated in the company. Showcase letters must be given to the head

within two (2) days after the employee commits three consecutive

tardiness or absences. Employees who will not comply with the said rules

will result to negligence and termination.

I. Legal Requirements
a. Security Exchange Commission or SEC

 Articles of Partnership

 Registration Data Sheet

b. Department of Trade and Industry or DTI

 Business Name Registration Form

 Application for Partnership

c. Department of Labor and Employment or DOLE

 Certificate of Registration

d. Social Security System or SSS

 Employer Registration or R-1 Form

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e. Bureau of Internal Revenue or BIR

 Certificate of Compensation Payment/Tax Withheld or 2316

Form

f. City of Nasugbu, Batangas

 Business Permit

 Sanitary and Health Permit

 Occupancy Permit

 Barangay Business Clearance

 Tax Clearance

 Mayor’s Permit

 Fire Safety Inspection Certificate

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 CHAPTER VI
FINANCIAL STUDY

In a business, it is important for us to understand the financial condition. This

chapter is capable of determining the stability of the firm and to know whether the

business is profitable or not. For us beginners, this will include the start-up capital, the

expenses and revenues, company’s total earnings, projected financial statements and its

projection analysis.

Objectives:

 To determine the financial performance of the firm.

 To make a realistic and complete financial statements based on the

financing of the proposed business.

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 CHAPTER VII

SOCIOECONOMIC STUDY

We all know that the main goal of every business is to earn profit, but we should

also consider the external factors that will affect the business. This chapter the sectors

that will benefit in this business. It is understood that one of the objectives is to earn

profit and at the same time is to socially and economically provide benefits.

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A. Socio-Economic Contributions

a. Contribution to the Philippine Economy

The Philippine sugar industry, the country's oldest and leading

export earner, is a very important sector of the economy. Average

sugarcane production over the past five years was 23 million metric

tons which yielded 2 243 700 metric tons of sugar from about 411 000

ha planted to sugarcane (Philippine Sugar Commission, 1985).

The following are the contribution of sugarcane to Philippine

economy:

 It kept the country self-sufficient in sugar with a large

surplus for export.

 It provides jobs for million sugar workers

 It can increase our GDP because of the exports

b. Employment Generation

The employees or workers of Bahay Tubo Sugarcane Producers

are important assets of the company, without them, the operation of

business will not work properly. The newly hired employees will be

trained on things that they must learn in the business to be effective

and efficient in the production of sugar cane. Also, company will

orient the workers so that they can enhance their skills and knowledge

in doing such course of business. Once the workers were hired the

company guaranteed that they will received compensations and

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benefits like membership in Social Security System (SSS), Philhealth,

and PAG-IBIG

Compensations and benefits of employees, including incentives

and leaves of personnel will follow government rules, specifically

from Department of Labor and Employment (DOLE).

Bahay Tubo Sugarcane Producers company also offers job

opportunities for the people like in farm or in office establishment

depends on their educational attainment and experience about the

specific job position.

c. Environment Contribution

In our world, today no product sold in the market can be

developed without taking into considerations its impact on the

environment. This statement is particularly valid for a food product

such as sugar, given the rising interest and expansion of markets for

natural and organic products. Sugarcane agriculture can be practiced

with a minimum consumption of chemical products and highly

compatible with the environment and soil conservation. The use of

fertilizers can be reduced significantly, and in some cases even

eliminated. A vast global market for sugarcane derivatives keeps the

industry booming. Sugar is prevalent in the modern diet and

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increasingly a source of biofuels and bioplastics. As prices of

petroleum rise, there is a growing market for ethanol from sugarcane.

However, if there are advantages there are also disadvantages:

 Pollution

Silt from eroded soils and nutrients from applied

fertilizers often foul water supplies. Sugarcane processing also

creates effluents that flow into water and damage important

ecological areas. Water quality concerns have prompted a

reduction in production in certain areas, with production

consequently intensified and expanded onto sandy soils.

Because such soils are easily leached production can only be

maintained over time with increasing applications of fertilizer.

 Industrial Waste

Sugar mills produce wastewater, emissions and solid

waste that impact the environment. The massive quantities of

plant matter and sludge washed from mills decompose in

freshwater bodies, absorbing all the available oxygen and

leading to massive fish kills. In addition, mills release flue

gases, soot, ash, ammonia and other substances during

processing.

 Soil Erosion and Degradation

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 Land laid bare in preparation for cane planting is

stripped of any protective cover, allowing the soils to dry out.

This impacts overall microorganism diversity and mass, both

of which are essential to fertility. Additionally, exposed topsoil

is easily washed off of sloping land, with nutrients leached

from the topsoil. Further, the continual removal of cane from

the fields gradually reduces fertility and forces growers to rely

increasingly on fertilizers

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