Jamm Co. Rice Farming: I. Name of The Company

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JAMM CO.

RICE FARMING
BRGY.
BAGONG
I. NAME OF THE COMPANY

The proponents shall operate under the name JAMM Co. Rice Farming

which came from the first initials of the names of the owners. This company will

be focusing on the farming, production and distribution of rice in Laguna.

The name JAMM Co. Rice Farming will stand as a flag on which lies the

performance of the business because it is one of the great factor in the success

of the business, for it will give the business its own personality and will be

distinguished from other business and it can also give an impact to the

customers.

II. DESCRIPTION OF THE BUSINESS

Rice is one of the most basic necessities in a Filipino’s daily life. JAMM

Co. Rice farming is a business wherein it focuses on production of rice seeds in a

traditional method to provide good quality yet cheap rice grains delivered to

Filipino people and the distributions of the end products to the retailers in

Laguna. Also, JAMM Co. Rice Farming wants to maintain one of the traditions

that we inherited from our ancestors which is to eat rice.

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JAMM CO. RICE FARMING
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III. COMPANY LOGO

The company chose the symbol “wheat” to signify the main product of

JAMM Co. Rice Farming which is the rice grains, “field” which represents the

methods used in the production of rice and how the rice grains are produced, the

color green represents the environment that has a big role in helping the

company to produce a good quality rice and aside from that, the natural colors

that depicts the whole logo was to show good rice production and distribution.

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JAMM CO. RICE FARMING
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BAGONG
IV. LOCATION OF THE BUSINESS

This agri-business will be located at Barangay Bagong Pook Pila, Laguna

wherein the agri-business will have five (5) hectares Rice Field to be allotted for

starting up a Rice Farming business.

There are a lot of locations that are suited for putting up a Rice Farming

business but Laguna is highly preferred by the proponents because of the

following advantages:

The place is more convenient and easy to travel. Unlike any other

locations or places, Brgy. Bagong Pook, Pila, Laguna is just 2-4 hours (estimated

time travel) which is 85 kilometers away from Manila. The proponents can easily

visit the location and they can check the site in case they need to or there’s an

emergency. And also, the investors can pay a visit to know the situations in the

site and if they want to know the process on how JAMM Co. Rice Farming

produces their rice grains.

Topography. Pila, Laguna has 0-2.5 slope of flat terrain which means that

the location has an appropriate arrangement of the natural physical features of

an area for plating rice.

Climate. Based on studies conducted by Department of Agriculture, Pila,

Laguna has a good climate compare to the other parts of Laguna. It is not much

prone in typhoons and floods because of the mountains surrounding the location

Soil Type. Majority of the soil type that is commonly used in Pila, Laguna

is Calumpang Clay/ Calumpang Series. It is very deep and poorly drained

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JAMM CO. RICE FARMING
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meaning it absorbs water slowly and then it retains it for so long. Calumpang clay

is good for planting rice and it is covered with irrigation system.

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JAMM CO. RICE FARMING
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V. BACKGROUND OF THE LOCATION

The name Pila is an abbreviation of the tagalog word Pilapil, which itself is

derivative of Pila-pila meaning set of rows, referring to the narrows mounds or

earth of hardened clay which serve as demarcation of boundaries between rice

paddies and adjoining properties. “Pilapil” is a very common sight in rice

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JAMM CO. RICE FARMING
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producing areas. Blessed by the bounty of nature with rich soil and water, Pila is

noted as an agricultural town with farming and fishing as its main industry.

VI. SHORT-RUN OBJECTIVES

 To enter the market with good reputation in terms of quality rice grains

with an affordable price.

 To master the current traditional method of planting we are using to be

effective in producing rice quality rice grains.

 To be a stable and loyal supplier to some retailers in Laguna.

 To be able to give opportunities to some farmers those are suffering on

the depreciation of the Agricultural economy in the Philippines.

VII. LONG-RUN OBJECTIVES

 This company aims to enter the rice market in order to provide quality rice

to local markets that would widely benefit the economy since rice is a

staple food and widely accepted by Filipino

 We aim to provide the needs of the Filipino in an appropriate and

affordable price.

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JAMM CO. RICE FARMING
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 JAMM Co. Rice Farming aims to have their own harvester and operational

tools to use so that they can provide the needs of their consumers in a

fastest way possible and also to increase their profit.

 The company wants to be one of the top or major suppliers of rice grains

in the whole Laguna and later on in Region 4-A CALABARZON.

 To eventually add more traditional method to our present method once the

business is stable to cut expenses and be more effective in producing rice

and efficient in our work timetable

 To be able to acquire a good amount or percentage of market shares in

Laguna and eventually in Region 4-A CALABARZON.

 To expand our rice field after collecting even half of the return of

investments or when investors have invested in our company.

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JAMM CO. RICE FARMING
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BAGONG

I. BACKGROUND OF THE STUDY

The study was conducted in order to know if the agri-business makes

sense and if it is feasible. The researchers come up with the agri-business idea

of rice farming in order to know if they can provide a cheaper or affordable yet

good quality rice grains to their consumers and if they can satisfy one of the

biggest demands of the Filipino market which is rice.

The proponents also come up with this agri-business to ensure that the

JAMM Co. Rice Farming will have a contribution to the improvements of the rice

industry in the Philippines.

II. STATEMENT OF THE PROBLEM

The study sought to determine the feasibility of putting up a 3 hectares

rice field.

 MANAGEMENT ASPECTS:

1. How much would be the required capital in putting up this agri-

business?

2. What are the processes in producing rice grains?

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JAMM CO. RICE FARMING
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3. How many personnel are required?

4. How long is the usual growth of rice grains?

5. What is the form of ownership of the business?

6. What are the legal requirements needed in putting up this agri-

business?

 MARKETING ASPECTS:

1. Who are the target markets?

2. What are the extend of the demand and competitions

3. Is the price reasonable and affordable?

4. Is the company’s advertising or promotion be effective and

efficient in attracting customers?

 TECHNICAL ASPECTS:

1. What methods to be used in planting rice grains?

2. What are the required equipment that are needed in planting

rice?

3. How would you ensure good quality of rice grains to be

harvested?

4. Where will be the end products will be distributed?

 FINANCIAL ASPECTS:

1. Is the study going to be feasible and sustainable?

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JAMM CO. RICE FARMING
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2. Is the given capital is enough in starting up this 5 hectares rice

farming business?

3. What would be the expenses to be considered in putting up this

agri-business?

4. How long would be the return of investments?

 SOCIO-ECONOMIC ASPECTS:

1. What would be the contribution of the business to the local

community of farmers?

2. Will the study help researchers find solution for the lowering of

agriculture in the economy?

3. Is the study going to help the poor communities with low

budget for foods?

III. OBJECTIVES OF THE FEASIBILTY STUDY

 MANAGEMENT ASPECTS:

1. To be able to meet the required legal documents including

the clearance for putting up the business

2. To be able to hire skilled farmers for a traditional method of

planting rice

3. To provide affordable yet good quality of rice grains

delivered to the local market

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JAMM CO. RICE FARMING
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BAGONG

 MARKETING ASPECTS:

1. To ensure potential target markets buying the rice grains

2. To entice bigger investors to invest more money to our

company

3. To be able to form an effective strategies to attract

customers and eventually entice investors

4. To effectively introduced our compny to the local market with

a good reputation

 TECHNICAL ASPECTS:

1. To knowledge ourselves about agricultural business

specially rice production

2. To know what kind of supplies, equipment and furniture and

fixture the business will use

3. To formulate strategies for creating a better method of

growing rice

4. To be able to know if the hired farmers are capable of doing

the job

 FINANCIAL ASPECTS:

1. To show that an agri-business can be feasible and

sustainable

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JAMM CO. RICE FARMING
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2. To identify the expenses needed for an effective rice farming

business

 SOCIO-ECONOMIC ASPECTS:

1. To build good relations with the people involved in the agri-

business including the harvester to provide a better range of

investors.

2. To help the Filipino satisfy the local demand of rice in the

Philippines.

IV. SIGNIFICANCE OF THE STUDY

The result of the study will be an important guide and reference to certain

person interested in establishing a rice farming agri-business in the Philippines.

This will also show among future business people the economic feasibility of the

venture. Since rice is a Filipino culture, putting up a project like this in reality will

help the country’s economic state in accordance to rice farming and will also

increase rice production and widen the rice industry business.

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JAMM CO. RICE FARMING
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V. SCOPE AND LIMITATIONS

This study of the “JAMM Co. Rice Farming” will be based on

management, marketing, technical, financial and socioeconomic aspect of

business. Consumers and retailers will be the main respondents. The product will

be disseminated within the market place of Laguna and orders are accepted by

the retailers that the company have and also we accept from the customers who

are willing to purchase our product.

VI. METHODOLOGY

A. SAMPLING METHOD

In this study the researcher’s used non-probability convenience sampling

method in which a list of questions for consumers and retailers in different parts

of Laguna specifically in the market places for the retailers.

B. SAMPLING TOOLS

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JAMM CO. RICE FARMING
BRGY.
BAGONG
In this study the researchers used survey paper in which a list of questions

was answered by rice consumers and retailers in different locations in Laguna.

The questionnaires were used to prove that there is a demand of rice in Laguna.

C. SAMPLING AREA

The researchers conducted the survey paper in different locations in

Laguna market places for the retailers and the consumers in the said location.

VII. DEFINITION OF TERMS

1.) MATURITY – Refers to the growth rate of rice grains.

2.) RELIEVER – Occasional or seasonal employees.

3.) MIDDLEMAN – The person who connects the producer to supplier.

4.) BINHI – Pre-sprouted rice plant.

5.) SABOG TANIM – A type of rice seed planting that throws seeds into

multiple directions.

6.) LIPAT TANIM – Is a type of rice seed planting that uses a plant and

putting accordingly to soil.

7.) HIGH BREED OR INBREED – A type of rice grains.

8.) HERBICIDE – A pesticide that is used for plants.

9.) DIAME – Is the waste of rice seeds after harvesting.

10.) CULTIVATE – Prepare and use land for crops or gardening to acquire a

quality land to be planted.

11.) IRRIGATE – To supply water to the land to ensure and help the growth of

crops.

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JAMM CO. RICE FARMING
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12.) HARVESTER – Machinery that turns crops to rice seeds that is ready for

heating.

13.) 60-0-0 – Is a type of fertilizer used in rice crops.

14.) VARIETY 218 – The seed used in sabog tanim.

15.) HECTARE – 10,000 sq. meter

16.) SEED GROWERS – People who sells seeds or binhi.

17.) FERTILIZER – A chemical or substance added to soil or land to increase

fertility of crops.

18.) ABONO – Fertilizer

19.) KABAN – 50 kilograms of a sack of rice.

20.) GAPAS – Ani

21.) KISKIS – a process in which the rice grains are peeled

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JAMM CO. RICE FARMING
BRGY.
BAGONG

I. INTRODUCTION

Producing rice is a very important business in whole Asia and of course in

the Philippines too. This company focuses mainly on the step-by-step method of

rice farming starting from the cultivation of the soil, irrigation process, preparation

of seeds and fertilizers until the harvesting time to provide good quality rice

grains.

JAMM Co. Rice Farming is a partnership company that produces good

quality yet cheap or affordable rice grains that are produced specifically for the

local markets. This company aims to prove its service to local markets to entice

investors to continually provide the slowly growing market of rice consumers.

II. COMPANY’S MISSION AND VISION STATEMENT

Vision:

JAMM Co. envision to be one of the top rice producer of good quality

grains and eventually to retain good investor to our company.

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JAMM CO. RICE FARMING
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To be the number one rice production business in Laguna and to help

community by giving good quality and affordable rice.

Mission:

To produce a good quality of rice grain and attract more investor to invest

more money in our company

To provide quality rice and service that meets its customer’s satisfaction.

III. COMPANY’S CORE VALUES

A. INTEGRITY

Being a good citizen, giving back to the community and complying

with regulation.

B. EXCELLENCE

We find deep satisfaction in excellent service to our clients and

recognizing the trust they place in us.

C. SERVICE EXCELLENCE

To maintained and build a good quality of service that will produce

a good quality of product.

IV. COMPENSATION AND BENEFITS OF THE EMPLOYERS

A. SALARY SCHEME

POSITION: AMOUNT OF SALARY: DAYS OF WORK IN A

MONTH:
Management Officer Php 400/day 20 days

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JAMM CO. RICE FARMING
BRGY.
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Accountant Consultant Php 750/day On Call (must be 16 days

per month)
Stay-in Farmers 200/day Everyday
Driver 500/day 7 Days per harvest
TABLE 1: SALARY SCHEME

B. PAYDAY

POSITION: PAYDAY:
Management Officer Every 15 days of the month (2x a month)
Accountant Consultant Every 15 days of the month (2x a month)
Stay-in Farmers Every week (4x a month)
Driver Every after the harvest
TABLE 2: PAYDAY

C. BENEFITS OF THE EMPLOYEES AND FARMERS

POSITION: BENEFITS:
Management Officer Php 5,000 Christmas Bonus
Accountant Consultant Php 5,000 Christmas Bonus
Stay-in Farmers - Alloted allowance for their food and

other necessities

- Php 5,000 Christmas Bonus


Driver - Php 5,000 Christmas Bonus
TABLE 3: BENEFITS OF THE EMPLOYEES AND FARMERS

V. COMPANY’S POLICIES, RULES AND REGULATION

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JAMM CO. RICE FARMING
BRGY.
BAGONG
A. GENERAL POLICIES

 For Owners

- The owners will not be withdrawing any kind of assets or cash

capital or anything that belongs to the partnership for personal

use unless 5 years of operation is finished in order easily gain

and track their return of investments.

 For Harvester

- The harvester should always be at the time of maturity of the

crops to harvest the crops, dry them, and package them on

sacks. JAMM company will only be paying 10% of the payment

and will only be handed by the accounting officer of JAMM

company after JAMM Company receive the sales per harvest.

The percentage (10%) will only be increased or decreased after

re-contract signing.

 For Retailers

- If the retailers would not comply with the total payment needed

the company will give then a time within the year to pay the full

balance or if not, 60% of the total balance within the year and

40% of the total balance to the following year.

 For Management officer

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JAMM CO. RICE FARMING
BRGY.
BAGONG
- The management officer should comply 20 days of working

days to regularly check the procedures from start to finish that

farmers don’t have the authority to act upon.

 For Accountant

- The accountant will only be on call and should comply atleast 16

days to the company in order to comply company needs like

accounting of expenses and income and the payroll of the

employees.

 Regular farmers

- Stay-in farmers should be on the site from the first quarter to

last quarter of planting with weekends off exception only If they

are critically needed to regularly check what is needed to be

done and they are required to regularly report to the

management officer.

 Driver general policy

- The driver will be on call and should comply at least 7 days for

delivering purposes only at the quarter of harvesting.

 On call farmers

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JAMM CO. RICE FARMING
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- Farmers that are relievers are provided by the agency from the

harvester should be present when needed depending on the job

given that they should bring equipment. They will be notified a

few days when they will be on call and will only be paid after the

job has been done.

VI. FORM OF OWNERSHIP

JAMM CO. Rice Farming is a partnership type business wherein a two or

more persons bind themselves to contribute money, property or industry to a

common fund, with the intention of dividing the profit among themselves. The

chosen type of business ownership is appropriate to the nature of business which

is the rice farming since it needed a large amount of capital and also, it should be

maintained properly.

VII. LEGAL REQUIREMENTS FOR BUSINESS

A. BARANGAY PERMIT

B. FIRE SAFETY EVALUATION PROGRAM

C. FIRE SAFETY CHECKLIST FOR BUILDINGS

D. FIRE SAFETY INSPECTION CERTIFICATION

E. INSPECTION ORDER

F. BARANGAY WORKING CERTIFICATION

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JAMM CO. RICE FARMING
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G. CONTRACTS BETWEEN HARVESTER

H. CONTRACTS BETWEEN RETAILERS FOR DEBTS OR PAYMENT OF

BALANCE

I. REQUIREMENTS AND STEPS FOR APPLYING PARTNERSHIP

(Securities and Exchange Commission)

 REQUIREMENTS:

- Name Verification Slip

- Articles of Partnership

- Joint Affidavit of two or more partners to changes partnership

name. (Not required if stated in the Articles of Partnership

- Endorsement or Clearance from other government agencies (if

applicable

 STEPS:

STEP APPLICANT/CLIENT SERVICE GUIDELINES FEES

DURATIO PROVIDER

N
1 Verify or reserve If proposed P100.00

10 mins. proposed name name is /reservation

allowed by the for 30 days;

system, the

reservation

and

confirmation

notice is

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JAMM CO. RICE FARMING
BRGY.
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printed and

given to the

applicant;
2 Present Articles of Check the Requirements Filing fee: 1/5

10-15 Incorporation and By- document of the Civil of 1% of the

mins. Laws at Green Lane presented. If Code of the Partnership`s

Unit Ground Floor, complete, Philippines capital but not

Secretariat Bldg., PICC advise the and other less than

Complex, Roxas registrant to existing laws P2,000.00

Boulevard Pasay City pay the filing M.C. No. 21 s. plus 1% of the

fee. If not, of 2013 on amount as

advise Omnibus legal research

applicant to Guidelines and fee

comply with Procedures on

requirements the use of

Corporate and

Partnership

names

M.C. No, 8 s.

of 2013 on

Filipino-foreign

ownership on

nationalized

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JAMM CO. RICE FARMING
BRGY.
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and partly

nationalized

activities

M.C. No. 3 s of

2006 on

principal office

and SEC MC

No. 6 s. of

2014 on

amendment of

the principal

office address

E.O. 98 dated

April 28, 1999

on Tax

Identification

Number (TIN)

MC No. 1 s. of

2013 on

mandatory TIN

of foreign

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JAMM CO. RICE FARMING
BRGY.
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investors

3 Pay filing fee at the After receipt of None

1 min Cashier located at the the application,

Ground Floor, CPRD staff

Secretariat Bldg., PICC generates the

Complex, Roxas Certificate of

Boulevard Pasay City Recording of

and file application with the Articles of

the Receiving Unit, Partnership

CRMD located at the bearing

Ground Floor, applicant`s

Secretariat Bldg., PICC SEC

Complex, Roxas registration no.

Boulevard Pasay City and Unified

Registration

Report (URR)
4 Present Official Receipt The Asst. None

5 mins. to Releasing Unit, Director

Ground Floor, reviews the

Secretariat Bldg., PICC application and

Complex, Roxas forward it for

Boulevard Pasay City to approval of the

get the Certificate of CRMD

Recording of the Director.

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JAMM CO. RICE FARMING
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Articles of Partnership
TABLE 4: STEPS IN APPLYING FOR PARTNERSHIP

VIII. CAPITALIZATION

The 4 components of the business will have a total contribution of

10,000,000 pesos as capital. All 4 contributors have same amount of contribution

to have a general form of partnership.

PARTNERS: CONTRIBUTION:
Enriquez, Aljon D. Php 2,500,000
Fajardo, Ian Joie M. Php 2,500,000
Montuya, Jhon Michael R. Php 2,500,000
Pineda, Mark Rafael L. Php 2,500,000
TABLE 5: CAPITALIZATION

IX. ORGANIZATIONAL CHART

4 MEMBERS OIC: Officer In Charge


PROPONENTS

Management/ Operation
Officers

DRIVER FARMERS (3)

FERTILIZER
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JAMM CO. RICE FARMING
BRGY.
BAGONG TANIM

MACHINERY OPERATIONS

CULTIVATION

IRRIGATION

FIGURE 1: ORGANIZATIONAL CHART

X. LABOR REQUIREMENTS

The company shall be employing at least 3 stay-in Farmers to run the agri-

business JAMM Co. Rice Farming. Their job includes the rice planting, reporting,

checking and maintaining the rice field in order to ensure that the methods are

properly done. And also, aside from their salary, they will also receive an

allowance and a place to stay.

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JAMM CO. RICE FARMING
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I. PRODUCT DESCRIPTION

A. HEALTH BENEFITS OF THE PRODUCT

White rice is a good source of energy as it consists of an enough

amount of carbohydrates. It is also rich in minerals such as calcium and

iron which promote healthy red blood cells and vitamins like niacin, vitamin

D, thiamine and riboflavin that improves metabolism.

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JAMM CO. RICE FARMING
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II. POPULATION

A. HISTORICAL POPULATION

2015 2016 2017 2018


LAGUNA 3,035,081 3,142,067 3,197,842 3,249,054
TABLE 6: HISTORICAL POPULATION

B. PROJECTED POPULATION

2019 2020 2021 2022


LAGUNA 3,325,407 3,403,554 3,477,752 3,553,567
TABLE 7: PROJECTED POPULATION

III. DEMAND ANALYSIS

For Filipinos, rice is usually the most common source of carbohydrates

unlike the western countries. Rice is a staple food in the Philippines and that is

why the demand of rice in the Philippines is ever growing. Rice serves as a very

important commodity in the Philippines economically, socially and even

politically.

Filipinos are rice dependent on the average, 30% of Filipino’s income is

allocated for rice (www.bas.gov.ph) over the past 2 decades the demand for the

rice in the Philippines is constantly increasing and expected to continuously

increase.

A. HISTORICAL DEMAND

HISTORICAL HISTORICAL MARKET FREQUENCY HISTORICAL

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JAMM CO. RICE FARMING
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YEAR: TARGET ACCEPTABILITY OF BUYING ANNUAL

MARKET OF RICE (B): (C): DEMAND

POPULATION (D=AxBxC):

(A):
2015 3,035,081 85% 86% 2,218,644.21
2016 3,142,067 85% 86% 2,296,850.98
2017 3,197,842 85% 86% 2,337,622.50
2018 3,249,054 85% 86% 2,375,058.47
TABLE 8: HISTORICAL DEMAND

LEGENDS:

A = Historical population of target market

B = Percentage of respondents who are willing to buy our local product

C = Percentage of buyers of local farmed rice

D = Historical market demand of rice for the past 4 years

B. PROJECTED DEMAND

YEAR: PROJECTED MARKET FREQUENCY PROJECTED

TARGET ACCEPTABILIT OF BUYING ANNUAL

MARKET Y (C): DEMAND

POPULATION RATE (B): (D=AxBxC):

(A):
2019 3,325,407 85% 86% 2,430,872.52
2020 3,403,554 85% 86% 2,487,997.97
2021 3,477,752 85% 86% 2,542,236.71
2022 3,553,567 85% 86% 2,597,657.48
TABLE 9: PROJECTED DEMAND

LEGENDS:

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JAMM CO. RICE FARMING
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A = Projected population of target market

B = Percentage of respondents who are willing to buy our local product

C = Percentage of buyers of local farmed rice

D = Projected market demand of rice for the past 4 years

IV. SUPPLY ANALYSIS

The government is heavily involved in the production, availability and

distribution of rice in order to make sure that the community or public has a

stable and sufficient supply. However, despite serious efforts, production is still

not good enough and the demand is still continually rising which is forcing the

government to import rice that apparently caused large losses of government

funds if the government doesn’t security program and will also affect the national

security and the economy.

Importing rice because of the shortage of supply would not answer the

problem because the lower-class of Filipino wouldn’t be able to afford its price.

According to Rappler, Filipinos consume around 170 kilograms of rice. Since the

Filipinos population for 2015 is 101,802,706 the rice that they will be able to

produce can only feed 96 million and the 5 million of Filipinos will have to

consume imported rice.

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JAMM CO. RICE FARMING
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A. HISTORICAL SUPPLY

HISTORICAL HISTORICAL METRIC TONS TO TOTAL

YEAR (A): SUPPLY OF RICE KILOGRAMS HISTORICAL

(B): CONVERSION (C): ANNUAL SUPPLY

(D=BxC+B):
2015 162,520.26 10 1,625,202.60
2016 163,047.07 10 1,630,470.70
2017 165,421.15 10 1,654,211.50
2018 166,009 10 1,660,090
TABLE 10: HISTORICAL SUPPLY

LEGENDS:

A = Historical year

B = Historical supply of rice in Laguna

C = Multiplier of historical supply from metric tons to kilograms

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JAMM CO. RICE FARMING
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D = Historical annual supply of rice in the whole Laguna

B. PROJECTED SUPPLY

PROJECTED PROJECTED METRIC TONS TO TOTAL

YEAR (A): SUPPLY OF RICE KILOGRAMS PROJECTED

(B): CONVERSION (C): ANNUAL SUPPLY

(D=BxC+B)
2019 169,497.74 10 1,694,977
2020 172,986.48 10 1,729,864
2021 176,475.22 10 1,764,752
2022 179,963.96 10 1,799,639
TABLE 11: PROJECTED SUPPLY

LEGENDS:

A = Projected year

B = Projected supply of rice in Laguna

C = Multiplier of historical supply from metric tons to kilograms

D = Projected annual supply of rice in the whole Laguna

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JAMM CO. RICE FARMING
BRGY.
BAGONG

V. DEMAND-SUPPLY ANALYSIS

A. HISTORICAL DEMAND-SUPPLY GAP

HISTORICAL HISTORICAL HISTORICAL HISTORICAL

YEAR (A): DEMAND (B): SUPPLY (C): DEMAND-SUPPLY

GAP (D=B-C)
2015 2,218,644.21 1,625,202.60 593,441.61
2016 2,296,850.98 1,630,470.70 666,380.28
2017 2,337,622.50 1,654,211.50 683,411
2018 2,375,058.47 1,660,090 714,968
TABLE 12: HISTORICAL DEMAND-SUPPLY GAP

LEGENDS:

A = Historical year

B = Historical demand

C = Historical supply

D = Historical demand-supply gap of rice in the whole Laguna

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JAMM CO. RICE FARMING
BRGY.
BAGONG

B. PROJECTED DEMAND-SUPPLY GAP

PROJECTED PROJECTED PROJECTED PROJECTED

YEAR (A): DEMAND (B): SUPPLY (C): ANNUAL

DEMAND-SUPPLY

GAP (D=B-C)
2019 2,430,872.52 1,694,977 739,895.52
2020 2,487,997.97 1,729,864 759,133.97
2021 2,542,236.71 1,764,752 777,484.71
2022 2,597,657.48 1,799,639 798,018.48
TABLE 13: PROJECTED DEMAND-SUPPLY GAP

LEGENDS:

A = Projected year

B = Projected demand

C = Projected supply

D = Projected demand-supply gap of rice in the whole Laguna

VI. MARKET SHARE

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JAMM CO. RICE FARMING
BRGY.
BAGONG
A. MARKET SHARES IN LAGUNA

MARKET SHARE PILA 16,684

CALANAN 16,455

SANTA MARIA 15,391

SANTA CRUZ 13,426

VICTORIA 12,875

MABITAC 11,828

SINILOAN 7,883

BAY 7,575

CALAMBA 7,185

PAGSANJAN 6,486

FIGURE 2: MARKET SHARES IN LAGUNA

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JAMM CO. RICE FARMING
BRGY.
BAGONG
The figure shows the market share of the different places in Laguna in the

industry of rice production. Pila has the largest share in rice field farming that has

a total of 16,684.

MARKET SHARE JAMM Co. Rice Mill

Princess Kielle Rice Supplier

A.R Rice Dealer & Supplier

Lorna Rice Supplier

Omel Rice Dealer

Belen, Ofrecio Rice Dealer

Alimario Alex C Rice Supplier

Jollizas Mart and Rice Supplier

Aliaga Rice Dealer

Gil Rice Dealer & Retailer

B. MARKET SHARES OF DIRECT COMPETITORS

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JAMM CO. RICE FARMING
BRGY.
BAGONG

FIGURE 3: MARKET SHARES OF DIRECT COMPETITORS

VII. MARKETING MIX

A. PRICE STRATEGY

There are some factors that will help rice farming company to sell

their product at the right price that will guarantee that the company is

earning profit depending on the strategies that they acquire but there are

some factors that are beyond the company’s control. For example, if there

is a bad weather or there are natural disasters in the location where you

have your commercial rice farm, then it will directly affect the harvest of

rice and also the prices of your product.

Over and above, In getting the right pricing for our product which is

the rice grains, we ensure that we choose a good location for our

commercial farm, choose a good breed or seeds that will guarantee

bountiful harvest and we are trying our best to attract buyers to our farm

as against taking our products to the market to source for buyers. With

this, we would have successfully decreased the cost of transporting our

harvest to the market and other logistics.

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JAMM CO. RICE FARMING
BRGY.
BAGONG
Our company is very aware that one of the easiest means of

penetrating the market and acquiring loads of customers for rice is to sell

them at a competitive prices hence, we will do all we can to ensure that

the price of our product are going to be what other commercial rice

company would look towards beating.

The rice end product would be sold to retailers for a price of 35 php.

per kilo and 1750 pesos for a kaban of 50 kg. The standard market price

would be ranging from 38-40 depending on the retailers and some of them

base their price on the SRP of Laguna.

B. PRODUCT STRATEGY

JAMM Co Rice Farming will produce a rice crop that will be sold to a

harvester business that will be affordable yet has a good quality. The

company will be using the traditional way and will only be sold to local

markets.

C. PROMOTION STRATEGY

The initial objective of our advertising is to inform local markets of our

affordable quality rice by putting up warning signs like “road closed”, “no

parking”, “one way” and etc. signs with our brand logo underneath or on the

sides. We will also be giving stickers to jeepney and tricycle drivers with

“barya lang po sa umaga” , and “ no smoking” sign with our brand name and

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JAMM CO. RICE FARMING
BRGY.
BAGONG
logo underneath and later to entice a larger span of market with bus logo at

the back in order to expose our brand logo to big investors.

D. PLACE STRATEGY

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JAMM CO. RICE FARMING
BRGY.
BAGONG
The rice farm is located at Brgy. Pook, Pila, Laguna that has a span of 5

hectares and 300 square meters. The proponents chose the location because

it is convenient in a way that it is already a rice-farming field ready and it is

much easier for the investors and agencies to travel, it has a good quality of

soil which is suited in planting rice and this part of Laguna has a great climate

that can help the rice crops grow in its optimum size and quality.

E. PROCESS

The process that the company used in their Rice Farming is the traditional

method which is the Lipat-tanim wherein it is a systematic way of planting rice

seeds. A traditional way of planting crops with local farmers of Laguna and

continuously improving some lack in the traditional method to have an

efficient and effective workforce.

F. PHYSICAL EVIDENCE

The physical evidence of the company will create a greater image of price

farming in terms of land in Laguna. The 3 hectares will have a continuous

planning crops 3 times per annum that is not planned to stop depending on

natural calamities.

VIII. MARKETING RESEARCH

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JAMM CO. RICE FARMING
BRGY.
BAGONG
A. MARKETING RESEARCH BACKGROUND PLAN

The survey was conducted with survey questionnaire mainly the

consumers of rice in Laguna and the retailers. The researchers will have a

total of 100 respondents for the consumers and 30 for the retailers around

the said area.

The researcher used the survey questionnaire to conduct the

survey. It is used to measure the consuming characteristics and/or

attitudes of people. The type of sampling that the researchers used is a

non-probability sampling (random sampling). The researchers conducted

questions and they chose respondents that are from Laguna area that

ranges from 18-70 years old who has the ability of purchase rice.

B. SURVEY RESULTS, ANALYSIS AND RECOMMENDATION

 BUSINESS TO CONSUMERS

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JAMM CO. RICE FARMING
BRGY.
BAGONG

FIGURE 4: SURVEY RESULTS FOR AGE OF CONSUMERS

FIGURE 5: SURVEY RESULTS FOR BRAND OF RICE

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JAMM CO. RICE FARMING
BRGY.
BAGONG

FIGURE 6: SURVEY RESULTS FOR WILLING TO BUY LOCAL FARMED RICE

FIGURE 7: SURVEY RESULTS FOR NUMBER OF CONSUMED RICE IN A WEEK

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JAMM CO. RICE FARMING
BRGY.
BAGONG

FIGURE 8: SURVEY RESULTS FOR CONSUMERS OF RICE

FIGURE 9: SURVEY RESULTS FOR GENDER OF CONSUMERS

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JAMM CO. RICE FARMING
BRGY.
BAGONG

FIGURE 10: SURVEY RESULTS FOR PEOPLE WHO CAN GO THRU A DAY WITHOUT RICE

FIGURE 11: SURVEY RESULTS FOR CONSUMERS WHO CONSIDERED BUYING CHEAP YET

GOOD QUALITY OF RICE

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JAMM CO. RICE FARMING
BRGY.
BAGONG

FIGURE 12: SURVEY RESULTS FOR CONSUMERS WILLING TO PAY FOR A KILOGRAM OF RICE

FIGURE 13: SURVEY RESULTS FOR WHAT PEOPLE SUBSTITUTE FOR RICE

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JAMM CO. RICE FARMING
BRGY.
BAGONG

FIGURE 14: SURVEY RESULTS FOR PEOPLE WHO PREFER BUYING RICE

 BUSINESS TO BUSINESS

Gender

Male
13
Female

17

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JAMM CO. RICE FARMING
BRGY.
BAGONG

Figure 15: Survey Results of Retailers Gender

Age

11 20-30 yrs old


31-40 yrs old
41-50 yrs old
5 more than 50 yrs old

Figure 16: Survey Results of Retailers Age

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JAMM CO. RICE FARMING
BRGY.
BAGONG

Number of Suppliers retailers have

1-3 Suppliers
4-6 Suppliers
7-9 Suppliers
More than 9 Suppliers

22

Figure 17: Survey Results for the number of suppliers retailers have

What type of rice retailers are selling?

Local Rice
Imported and Local Rice

22

Figure 18: Survey Result for the type of rice retailers are selling

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JAMM CO. RICE FARMING
BRGY.
BAGONG

Would you buy a local rice from a new supplier?


2

Yes
No

28

Figure 19: Survey Results of If retailers are willing to buy local rice from a new supplier

Number of kilograms retailers sell in a day

30-40 kgs
50-60 kgs
70-80 kgs
More than 80 kgs
3

20

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JAMM CO. RICE FARMING
BRGY.
BAGONG
Figure 20: Survey Results for the number of kilograms retailers sell in a day

How often do they get rice supplies


2
1

Once a week
Twice a week
8 Thrice a week
Monthly

19

Figure 21: Survey Results of how often retailers get rice supplies

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JAMM CO. RICE FARMING
BRGY.
BAGONG

Number of sacks retailers usually buy from


suppliers

7 5-10 Sacks of rice


11-15 Sacks of rice
11 16-20 Sacks of rice
21-25 Sacks of rice
More than 25 Sacks of rice

3
6

Figure 22: Survey Results for number of sacks retailers usually buy

Price range of retailers


4 5

30-40 Pesos
41--50 Pesos
51-60 Pesos
More than 60 Pesos

21

Figure 23: Survey Results for Price Range of retailers

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JAMM CO. RICE FARMING
BRGY.
BAGONG

How do they price their rice


1.2

6 Depending on how good the


4
rice
Depending on the price of the
suppliers
Depending on the
season/climate
Depending on SRP
(Suggested Retail Price)

12

Figure 24: Survey Results for how retailers price their rice

IX. MARKETING ENVIRONMENT ANALYSIS

A. INDUSTRY ANALYSIS

Rice farming process is a very important sector when it comes to

the economy of the economy of the Philippines. Amongst all the crops in

the Philippines rice farm is the most demandable by Filipino consumer.

The Philippines is the world’s eight- longest rice producer. Its arable

land or suitable for growing crops totals to 5.4 million hectares. Rice area

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JAMM CO. RICE FARMING
BRGY.
BAGONG
harvested has expanded from nearly 3.8 million hectares in 1995 to about

4.4million hectares in 2010.

The demand of the rice in the Philippines is ever growing because

rice is a staple food for most Filipino’s across the country, the nation

capital rice consumption rice from 93.2kilograms per year in 1995 to 123.3

kilogram per year in 2010. Rice faming is indeed one of many businesses

investors are interested in rice farming also helps a bunch worth in

farmers who are dependable in agribusiness.

X. TARGET MARKET

A target market is a group of customers towards which a business has

decided to aim its marketing efforts and ultimately its merchandise. Our

company’s target market would be the locals particularly the Region 4-A

CALABARZON.

XI. MARKET SEGMENTATION

A market segment is a classification of potential customers by one or more

characteristics in order to identify groups of customers which have similar needs

and demand concerning the recognized quality of products.

1. GEOGRAPHIC

INDUSTRY AGRICULTURAL PRODUCTS


COUNTRY PHILIPPINES

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JAMM CO. RICE FARMING
BRGY.
BAGONG
CITY ASIA
REGION REGION 4-A CALABARZON
DENSITY RURAL
SPECIFIC AREA CAVITE, LAGUNA, BATANGAS, RIZAL,

QUEZON PROVINCE
TABLE 14: GEOGRAPHIC SEGMENTATION

2. DEMOGRAPHIC

AGE 18-70 YEARS OLD


GENDER MALE AND FEMALE
OCCUPATION ANYONE WITH THE CAPACITY TO PAY
TABLE 15: DEMOGRAPHIC SEGMENTATION

3. PSYCHOGRAPHIC

SOCIAL CLASS LOW, MIDDLE AND UPPER CLASS


LIFESTYLE FILIPINO FOOD ENTHUSIAST
PERSONALITY PEOPLE WHO LOVES EATING HEAVY

MEAL
TABLE 16: PSYCHOGRAPHIC SEGMENTATION

VIII. SWOT ANALYSIS

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JAMM CO. RICE FARMING
BRGY.
BAGONG
STRENGHTHS: WEAKNESSES:
 Competitive price range enables  Limited promotion

affordability of the product.  We are a new commercial rice

 Use of traditional method and farms in Laguna

slowly adapting to the modern  Innovation

farming in terms of machinery.  Modern technology – Lack of

 Helping agriculture industry by expertise in technology

investing on agricultural business.  Lowest market share

 We have healthy relationships with  Some machineries are rented

loads of major players involving the

agriculture merchants who deal in

rice in the commercial farm

industry; both the suppliers and

buyers within the Region 4-A

CALABARZON.

 We can confidently boast that we

have some of the most experiences

farmers in Laguna.
OPPORTUNITIES: THREATHS:
 We may have the lowest market  Natural Calamities

share but Laguna was one of the  Competitors from other location

place where rice production is who has a high market shares

growing  Pesticides

 Increasing number of population in  Modern Farming

the Philippines which cause to the

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JAMM CO. RICE FARMING
BRGY.
BAGONG
increase of the demand of rice
TABLE 17: SWOT ANALYSIS

IX. PESTLE ANALYSIS

OPPORTUNITIES: THREATS:

POLITICAL  Change in government

policies (e.g. trade

regulations and tariffs

related to basic materials)

 Changes in the tax policy

regarding agricultural

business and production.

(e.g. Train law)

ECONOMIC  Economic Growth Rate  Labor costs and

(increase in market size) productivity in the

economy

 Inflation (change in food

prices)

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JAMM CO. RICE FARMING
BRGY.
BAGONG
SOCIO-  Having a good quality of  Issues about plastic rice

ECONOMIC rice to subject others to

buy and try our product

 Population growth rate

(increase in market size)

TECHNOLOGY  Low cost because our The technological threat could be

company focuses on the invention of new machineries

manpower method in farming. If any new

machineries are being introduced

then our company has to adopt to

that slowly because JAMM Co.

Rice Farming uses a traditional

method in which we focuses

mainly I manpower than the

machineries.

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JAMM CO. RICE FARMING
BRGY.
BAGONG
LEGAL  R.A. no. 2084 – An act to  Rice tariffication bill

promote rice and corn

production

 R.A. no. 10068 – An act

providing for the

development and

promotion of organic

agriculture in the

Philippines

ENVIRONMENT  Not having much waste  Natural disasters such as

to affect the environment typhoon, pollution control,

water waste

TABLE 18: PESTLE ANALYSIS

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JAMM CO. RICE FARMING
BRGY.
BAGONG
I. BUSINESS DESCRIPTION

JAMM Co. Rice Farming is a partnership company which will operate rice

farming agri-business in Brgy. Pook, Pila, Laguna consisting of 5 hectares and

300 square meters of rice field. The business will focus on producing a cheap yet

good quality rice grains and to be distributed by the company in some areas in

Laguna and by the middleman in CALABARZON areas.

II. PROJECT TIMETABLE

METHODOLOGY OF INDIRECT METHOD OF RICE FARMING

1st Step: 1 day

CULTIVATION PROCESS

TRACTOR- To till or plow the soil. (BUNGKAL)


2nd Step: 1 day

PAGONG- Flattening of plowed soil and to remove unnecessary

weeds in the bed of soil.


3rd Step: 1 day

KULIGLIG- Preparing the soil to be arranged and be ready for

irrigation.

4th Step: Half Day

IRRIGATION- to fill the bed of soil with water.

5th Step: 1 and a half day

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JAMM CO. RICE FARMING
BRGY.
BAGONG
Letting the soil absorb the water and let it sit for 1 and a half day.
6th Step: 15 days

Before the cultivation even starts, the farmers arranged a bed of

soil where they plant a seed that is called variety 216. This seed

will grow into a few inches for 15 days. This method is called the

“Dalakdak” method. This the method is a systematic way of lipat

tanim that will eliminate the wasting of unnecessary growth that

usually goes to waste.


7th Step 1/3 of the day

Once the dalakdak bed is ready for moving, the plant will be taken

out of the bed.


8th Step 2/3 of the day

Budbod method- moving or replanting of binhi plants from the bed Start of the 90

to the well cultivated and irrigated soil days of maturity

9th Step: 1 day

Kaladkad method- outlining of soil for the plant to be organized 2nd day of 90 days

while growing. of maturity

10th Step: Every 2 to 3 days

Checking or maintenance of the crops and their conditions. Every 2 of irrigation

to 3 days of irrigation depending on the climate


11th Step: First 15 days or

Fertilizer- also known as abono method or putting fertilizer to the 30 days

crops on the first 15 days or 30 days


12th Step: First 30 days and

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JAMM CO. RICE FARMING
BRGY.
BAGONG
Spraying of multiple pesticides for controlling pests on the first 30 70 days of

days of maturity and 70th day. This will be monitored depending on maturity

the climate but pesticides will be at least twice on every 90 days of

maturity.
13th Step End of 90 days

End of 90 days of the maturity of crops


14th Step:

Harvesting of 5 hectares that will total of 3 hours and drying of rice

grains at the rest of the day


15th Step

Delivering of harvester of sacked rice grains that aren’t pealed.

16th Step:

Kiskis method or pealing of rice grains to be ready for

commercializing.

17th Step: Rest of 10-13

Commercializing of rice days of first

-Delivering quarter

-Negotiating
TABLE 19: METHODS OF INDIRECT RICE FARMING

III. OPERATIONAL FLOWCHART

A. BUSINESS TO BUSINESS FLOWCHART

CULTIVATING PAG-SASABOG Pamantasan ng Lungsod ng Maynila Page 72


PATUBIG
THE SOIL NG ABONO
IRRIGATION PAG-TANIM PAG-ANI

JAMM CO. RICE FARMING


BRGY.
BAGONG
PAG-TRAKTORA PAG-BATAK PAG-KISKIS

BUDBOD FINAL
PAG-PAGONG END USER
(Salinang of Binhi) PACKAGING

LAPLAP
PAG-KULIGLIG (Removing of MIDDLEMAN RETAILER
binhi)

IV. PLANT SIZE AND PRODUCTION PLANNING

A. PLANT SIZE

The rice plant will/can grow up to 1-1.8m (3.3 – 5.9 ft.) tall or more

depending on the variety and soil fertility. While the rice grains can grow up to

5.51 to 6.6 mm which is the medium size of a normal rice grains.

B. PRODUCTION SCHEDULE

JAMM Co. Rice Farming will produce a good quality rice grains three (3)

times per annum. The first rice production will start on January and the first

harvest will be on March then April will be the preparation for the next rice

production. Followed by the next rice production on May then the harvesting

will be on July then August will be the preparation for the last production of

the year. And the last production will start on September and will be

harvested on November then December will be the preparation for the rice

production for January.

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JAMM CO. RICE FARMING
BRGY.
BAGONG

JANUARY AUGUST SEPTEMBER


FIRST PREPARATION LAST
PRODUCTION FOR THE PRODUCTION
SECOND
PODUCTION
MARCH NOVEMBER
FIRST JULY LAST
HARVESTING SECOND HARVESTING
HARVESTING
APRIL DECEMBER
PREPARATION MAY PREPARATION
FOR THE FOR THE
SECOND SECOND PRODUCTION
PODUCTION PRODUCTION FOR THE NEXT
YEAR

V. LOCATION PLANNING

A. PLANT LAYOUT DESIGN AND SPECIFICATION (FLOOR PLAN)

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JAMM CO. RICE FARMING
BRGY.
BAGONG

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BRGY.
BAGONG

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BRGY.
BAGONG

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JAMM CO. RICE FARMING
BRGY.
BAGONG
VI. FACILITIES PLANNING

A. MACHINERIES AND EQUIPMENTS

The total amount of equipment and machineries used is 8,600 pesos

(eight thousand six hundred pesos) per hectares

TRAKTORA 4,500 pesos per hectare


PAGONG 2,000 pesos per hectare
KULIGLIG 2,000 per hectare
KISKIS 100 per hectare (2 pesos per kilo = 50 kg

per hectare)
TABLE 20: MACHINERIES AND EQUIPMENTS

VII. SUPPLIES

The total amount of supplies used is 7,910 pesos (seven thousand nine

hundred ten pesos) per hectares

QTY. PRICE
SEED/BINHI 1 1,400 pesos per hectare
KRUDO-GASOLINE 1 2,000 pesos per hectare
FERTILIZER 1 1,175 pesos per hectare
FUNGICIDE (PAMATAY 250 ml 725 pesos per hectare

AMAG)
HERBICIDE (PAMATAY 1 liter 410 pesos per hectare

DAMO)

MOWER
MOLLOSCIDE (PAMATAY 1 kg 255 pesos per hectare

SUSO)

NICIOUS M

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JAMM CO. RICE FARMING
BRGY.
BAGONG
INSECTICIDE (PAMATAY 16.7 kg 1,210 pesos per hectare

INSEKTO)

LEADFORCE ULTRA
INSECTICIDE (PAMATAY 1 sachet 310 pesos per hectare

INSEKTO)

STARKLE
INSECTICIDE (PAMATAY 1 liter 405 pesos per hectare

INSEKTO)

BUGBUSTER/ DEATHBUG
PAMATAY DAGA 1 sachet 20 pesos per hectare

ZINC PHOSPIDE
TABLE 21: SUPPLIES

VIII. WASTE DISPOSAL

In every production, waste management is important. The rice production

business has little to zero waste because all the rice crop contains a waste that are

all biodegradable and can be used as fertilizers.

From the seeds that grows crops o the end product of rice seed has a

segregation of waste that will be used as fertilizers and food for farm animals, foods

like the straws for cows and horses and the Darak for poultry and hog animals that

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JAMM CO. RICE FARMING
BRGY.
BAGONG
are segregated at the rice milling process. So we can say that the production of rice

is a waste-free because we don’t need to collect garbage.

XII. MAINTENANCE PLAN

A span of 120 days:

Checking or maintenance of Every 2 months

machineries
Payment of Amilliar Annually
Water irrigation or water supply Daily

management
Checking or inspecting of different Weekly after plants has been moved

pests
TABLE 22: MAINTENANCE PLAN

I. FINANCIAL ASSUMPTIONS

 Cash Sales are 70% of Total Sales

 Receivables are collected 60% in the current year and 40% the following

year.

 Cash purchases are 65% of Total Purchases

 All other expenses are paid in cash

 Depreciation method used is straight line method

 Useful life of non-current assets

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JAMM CO. RICE FARMING
BRGY.
BAGONG
 No withdrawals in any form should be made during the first five years of

operations.

II. BALANCE SHEET TABLE 23: BALANCE SHEET

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JAMM CO. RICE FARMING
BRGY.
BAGONG

III. INCOME STATEMENT TABLE 24: INCOME STATEMENT

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JAMM CO. RICE FARMING
BRGY.
BAGONG

IV. CASH FLOW STATEMENT TABLE 25: CASH FLOW STATEMENT

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JAMM CO. RICE FARMING
BRGY.
BAGONG

V. OWNER’S EQUITY TABLE 26: OWNER’S EQUITY

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JAMM CO. RICE FARMING
BRGY.
BAGONG

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BRGY.
BAGONG

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JAMM CO. RICE FARMING
BRGY.
BAGONG
VI. NOTES TABLE 28: NOTES

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JAMM CO. RICE FARMING
BRGY.
BAGONG
I. Socio- Economic Aspect

A. Economy

Since our business is Agricultural it will be a part of helping the dying Agri-

business/Farming in the Philippines and also the employment rate of farmers

within Laguna. Our business will be encouraging Filipino’s to buy local rice

products than buying from imported rice. This will help our economy in terms of

buying local than buying imported.

B. Culture

Rice has been a staple food for centuries. A large scale of Filipino’s can’t

have meals when rice isn’t available. Rice completes and sustains the everyday

life of Filipino’s whether they may be young or old.

C. Environment

Rice hulls is one of the wastes in rice farming it can also be use in poultry

farming and in case natural disaster happen, rice that cannot be sold can be

used to irrigate the soil.

D. Government

This Agri-business will help the Government in both rice production and

distribution to contribute in the Rice market share here in the Philippines.

Pamantasan ng Lungsod ng Maynila Page 72


JAMM CO. RICE FARMING
BRGY.
BAGONG
E. Future Researchers

This feasibility study will help the future researchers, in this study it

contains accurate information in starting up a rice farming business and some

estimated amount in the financial aspects. Future researchers may base their

study and made this as their reference.

Pamantasan ng Lungsod ng Maynila Page 72

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