Sugar Mill Feasibility Study

By admin | March 2, 2009
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Name of the Enterprise

This proposed sugar mill shall be called as Sweet Sugar Incorporated, obviously sugar is sweet and sweet is
sugar. That’s why it shall be called as Sweet Sugar Incorporated.

Sweet Sugar Incorporated shall have its own plant located in Sitio Maguindong, Luakan, Dinalupihan, Bataan.

The site was chosen because its strategic location, where the supplies of public and private services are
adequate and labor supply and raw materials are readily available.

Sources of Raw Materials

The plant shall have its own sugarcane plantation near the mill and the plantation shall be adequate in land area
that will produce the needed raw material for sugar.

Availability of Transportation

The plant site is strategically located in Sitio Maguindong, Luakan, Dinalupihan, Bataan where transportation
is not a problem. The plant is readily accessible to the workers. The finished sugar can be readily delivered to
the market.

Project Long Range Objective

The Sweet Sugar Incorporated shall stick to its obligation and responsibility to its consumers of providing and
producing the highest quality of sugar. No toxic materials shall be used or if there is, it should be properly
disposed. It also respond to the needs of the barangay where it is located in order to help its progress.

The Sweet Sugar Incorporated shall be the number one product and supplier of high-grade sugar throughout
Luzon and its neighboring provinces, and if expansion is needed, it shall be done without overlooking its
primary objectives.

Financing shall come from the shares of the stockholders/owners of the Sweet Sugar Incorporated. If ever the
shares can’t cover up the expenses of constructing the plant before its operation, the Sweet Sugar Incorporated
shall apply for loans which will give the maximum output for the plant. When business is already in operation,
its liabilities and loans shall be paid from the sugar revenue

Market Study
As Bataan is situated geographically near the center of the Philippines, the finished product can be easily
transported to the neighboring provinces in the country. Manila, the leading distribution center in the
Philippines will be recipient of greater bulk of the product.

Analysis of Market Demand and Supply

Sugar is one of the primary commodities of the people, thus it is very important to have big supply that will
cover up the big demand for sugar. The establishment of this sugar mill will greatly help our fellow Filipinos
and most of all, our economy. This sugar mill will increase the sugar supply in the market, thus lessening our
importation of sugar which is more expensive in cost.

Market and Marketing Strategy

Vigorous effort should be expanded to secure a market before a commitment is made to build a sugar mill if it
would be most desirable to have the financial participation of one or more major users who can guarantee the
purchase of substantial portion for the procedure production. During the past years, several overtures were
made in this direction which revealed the opportunities existing.

Scale and Volume

The receiving of raw materials supply condition market potential and engineering should be considered. It
would have production line which represent 769,434 tons per unit day. The output of the plant will depend on
the production conditions.

Sugar Marketing Operation

The structure of general framework of market situation is already been said of the manner in which selling,
shipping, financing and all other commercial aspect of marketing are out inside the general framework. These
function rarely been described except by and for the specialist concerned with them. They are the essential
link, however, providing the customers with that they want and the sugar industry with their income.

The successful selling of the product ultimately determine the prosperity of every one in industry if it is not
sold successfully all the efforts of the farmers, millers and readiness with their employees and the most of
business which supply and service them will suffer. The final customers are their most important millions of
housewives buying sweets or soft drinks not only 4 lbs. of sugar and tin of golden syrup but also the tin of jam.

Market Distribution

Pricing should follow the established market prices and practices which in turn are determined by the forces of
demand and supply, however because of uncertainty of sugar during the start up period, some prices
concessions should be made in order to break into market. A suggestion that is to 20% reduction from
established market prices be affected on the first year output.

Everyone is using sugar everyday, but assumed of sugar feeds are centrally as possible within the area of cane
fields, as this will facilitate the transportation of cane with less rolling stock and other fixed charges for their
department. Moreover, easy cane supply, so necessary for a economical grinding, will secure to the factory.
The direction of the prevailing wind and its accessibility to the factory and dwelling should be ascertained to
avoid dust, ashes, smoke and odor of refuse going in wrong direction. Healthy surroundings are paramount
importance to the employees. Standing and deterioration water must not be allowed near the factory.

Technical Study

The proposed plant site at Sitio Maguindong, Luakan, Dinalupihan, Bataan offers a plentiful supplies of water
and power. The site offers adequate supply of water for growing sugarcane, and power for the production of
sugar. It also offers adequate supply of laborers, which is considered more important than all the other factors,
especially when skilled and unskilled laborers are required.

The company will hire Filipino larorers in sugar cane manufacturing. Laborers near the company site and more
preferable to the employees to insure promptness and can do overtime work when needed Another important
reason is that people from nearest place can easily transport with their convenience since the company is small,
the working force will be required from town itself or its vicinity. The company on the other hand will give
assurance to the workers like a good working condition, facilities for a conductive maintenance of their health
incentives and many other benefits required by the labor code, plus benefits given by the company itself.

The Project Site

Sitio Maguindong, Luakan, Dinalupihan, Bataan was chosen the best region of all sugar plantation in the
Philippines due to its abundant supply of labor will not be difficult to achieve as most barrio folk are quite
hardworking and industrious. Another reason is because of availability of raw materials and have favorable
conditions. The plant would be erected near the national highway which will enable the transportation of
finished product to the opposite provinces of course, sugar central will increase their yearly supply of sugar
production thus helping the sugar industry.

The determination where sugar cane factory is to be located is purely an agricultural one. So far, it is referred t
the tract of land which has to be adequate for growing sugar cane fr a period of years and the location where
climate condition and rainfall are much that successful crops to be expected.

As Bataan is situated geographically near the center of the Philippines, the finished product can be easily
transported to the neighboring provinces.

The various waste materials produced by industries maybe classified generally as solids, gaseous or liquid.
Solid waste are directly related to a loud pollution gas liquid to air and water pollution, although all of them
have combined and interrelated effects on pollution.

Methods of Waste Disposal

1. Eliminate of source. The first approach to a waste disposal problem requires a careful attention of the source
of pollutants.
2. Recovery of waste products. Before deciding how to discard waste materials, the engineer should always
think for recycle, reuse or for sale.
3. Regulate how to fit dilution
4. Divert waste to other points
5. Waste treatment. – A very expensive process the recent encountered by the major cities of the world due to
smog problem and the question as due to how to dispose gaseous waste, electrostatic precipitators,
aggrometrators, washers and many other kind of equipment have been used to remove atmospheric
contaminants.

Disposal of solid waste materials on land is always a complicated problem, incineration and burying are
possible solution and the best is by recycling.

A judicious plant design eliminates a potential hazardous operations should be separated from various plant
facilities and sufficient protection is made, possible sources of fire by eliminating all the unnecessary ignition
sources such as flame, spark or heated material, welding, smoking, static electricity and the spontaneous
combustion of waste materials.

Chemicals can cause dangerous burns and accidents are bound to occur rotating sections of equipments should
be amply protected to prevent accidents.

Management Study
For Pre-operating Period:

During the pre-operating period, the stockholders are responsible to deal with some government and private
agencies to secure the necessary document and deal in financing institution for financial needs of the project.
These persons are the one to negotiate for the constructor. The supplier of the materials and by the hired
construction firm and the supervision will be integrated with the said contract. Consultant shall be hired also to
ensure the safety of the plant and to supervise the installation of the equipment.

For Operating Period:

During the operating period, the stockholders handled the key position in the company. The business is
organized and incorporate with their respective holdings:

Board of Directors

– Chairman of the Board

– Member
– Member
– Member
– Maintenance and Material Director
– Company Accountant
– Sales Director
– Production Director

The company sees to it that hired accountant and supervision directors are all licensed by the professional
Regulation Commission (PRC) in their respective professions. All these persons should have at least an
experience in their respective jobs. The company accountant is responsible for the books and the preparation of
the company book of accounts. He also prepares the payroll and he examines the financial status of the
company.

The sales director will assists the selling and finding markets for the products. The production director is
responsible for the production in order to insure for good productivity and minimize production or
manufacturing costs.

The maintenance and materials director is responsible for the safety programs and maintenance of the plant. He
should set the guidelines and train workers about safety and accidents and be able to continue the flow of the
product even machine breakdown occurs, which are hindrance to the company’s re-productivity programs.

Financial Study
Major Assumption

An industry like sugar mill requires a big capital. The stockholders shall provide the needed capital for the
establishment of the whole business. Funds shall be given for the purchases of the necessary equipments and
necessary materials for the construction of the building and for the purchase of land. In case that there is no
sufficient fund, the company shall apply for loan in the bank which gives the lowest interest. During operation,
the company shall pay its obligation out its revenues.

Equipment cost less than P40,000,000.00. Building construction (payment for the labors included) costs more
than P20,000,000.00. Land (for the plant site and sugar cane plantation costs P20,000,000.00. The stockholders
shall produce a budget of not less than P80,000,000.00.

Socio-economic Study

Taxes and Restricting Law

Bataan offers the lowest tax rate for industries like sugar production, and the best of Bataan is, they offer,
provide government subsidy and help to the industries located in its territory. Provincial and town legislation
are also important. The sweet sugar laws are more stringent in Bataan. Sweet Sugar Incorporated will help
boost the economic status of Dinalupihan, Bataan because it will provide a great number of jobs for the
unemployed folks in the area, thus, giving them more opportunities in life.
 A FEASIBILITY
(Sweet Sugar REPORT on SUGAR MILL
Incorporated)

Executive Summary
Sugarcane Potential, agro climatic conditions and the cost of conversion and overheads etc. are
the major deciding factors for fixing the crushing capacity of a sugar plant. It has been
established that wages and other overhead costs per toned of sugar get reduced substantially
with higher plant sizes.

Most of the land in the operational area of the factory is suitable for cane cultivation. The sweet
Sugar Corporation, keeping in view the above citied reasons, plans to expand / modernize its
existence. Besides the direct benefit, the expansion would help to crush cane in time so that
the high recovery due to timely crushing would further improve the economy of the farmers.

Introduction:
The Philippines Sugarcane Industry contributes no less than P70 Billion to our economy
annually. Out of the total land area of about 30 million hectares, sugarcane is planted to about
422,500 hectares in the Philippines, with about 62,000 farmers. There are 29 operating raw
mills with combined crushing capacity of 185,000 metric ton cane per day. Sugar is one of the
countries well-known products produced from sugar factory. Environmentally speaking these
are very profitable and one option product and the fact that the demand is up high.

It is possible for many sugarcane producers to put it to useful purpose by producing more
sugarcane laboratories in the country. The sugar has various uses in chemical industry,
pharmaceutical industry like for example the process drinks that we have today that has sugar
on it. This organic load from a sugarcane can be converted to useful compost, which in turn can
assist growth of sugarcane for the member farmers. The sugar producing company needs labs
to operate so that they can expand their services.

Background:
The Sweet Sugar Incorporated wants to put a sugar mill located in Sitio Maguindong, Luakan,
Dinalupitan, Bataan. They have chosen this site because its strategic location, where the
supplies of public and private services are adequate and labor supply and raw materials are
readily available. Sugar is one of the primary commodities of the people, thus it is very
important to have big supply that will cover up the big demand for sugar.
The establishment of this sugar mill will greatly help our fellow Filipinos and most of all, our
economy. This sugar mill will increase the sugar supply in the market, thus lessening our
importation of sugar which is more expensive in cost. The plant shall have its own sugarcane
plantation near the mill and the plantation shall be adequate in land area that will produce the
needed raw material for sugar.

The purpose of this is to vigorous effort should be expanded to secure a market before a
commitment is made to build a sugar mill if it would be most desirable to have the financial
participation of one or more major users who can guarantee the purchase of substantial
portion for the procedure production. During the past years, several overtures were made in
this direction which revealed the opportunities existing.

Requirements:
For Pre-operating the construction:

During the pre-operating period, the stockholders are responsible to deal with some
government and private agencies to secure the necessary document and deal in financing
institution for financial needs of the project.

These persons are the one to negotiate for the constructor. The supplier of the materials and by
the hired construction firm and the supervision will be integrated with the said contract.
Consultant shall be hired also to ensure the safety of the plant and to supervise the installation
of the equipment.

For Operating Period:

During the operating period, the stockholders handled the key position in the company. The
business is organized and incorporate with their respective holdings:

Board of Directors

– Chairman of the Board

– Member
– Member
– Member
– Maintenance and Material Director
– Company Accountant
– Sales Director
– Production Director
The company sees to it that hired accountant and supervision directors are all licensed by the
professional Regulation Commission (PRC) in their respective professions. All these persons
should have at least an experience in their respective jobs. The company accountant is
responsible for the books and the preparation of the company book of accounts. He also
prepares the payroll and he examines the financial status of the company.

The sales director will assist the selling and finding markets for the products. The production
director is responsible for the production in order to insure for good productivity and minimize
production or manufacturing costs.

The maintenance and materials director is responsible for the safety programs and
maintenance of the plant. He should set the guidelines and train workers about safety and
accidents and be able to continue the flow of the product even machine breakdown occurs,
which are hindrance to the company’s re-productivity programs. An industry like sugar mill
requires a big capital. The stockholders shall provide the needed capital for the establishment
of the whole business.

Funds shall be given for the purchases of the necessary equipment and necessary materials for
the construction of the building and for the purchase of land.

In case that there is no sufficient fund, the company shall apply for loan in the bank which gives
the lowest interest. During operation, the company shall pay its obligation out its revenues.

Equipment cost less than P40,000,000.00. Building construction (payment for the labors
included) costs more than P20,000,000.00. Land (for the plant site and sugar cane plantation
costs P20,000,000.00. The stockholders shall produce a budget of not less than P80,000,000.00.

Evaluation:
Everyone is using sugar everyday, but assumed of sugar feeds are centrally as possible within
the area of cane fields, as this will facilitate the transportation of cane with less rolling stock
and other fixed charges for their department. Moreover, easy cane supply, so necessary for a
economical grinding, will secure to the factory. The direction of the prevailing wind and its
accessibility to the factory and dwelling should be ascertained to avoid dust, ashes, smoke and
odor of refuse going in wrong direction. Healthy surroundings are paramount importance to the
employees. Standing and deterioration water must not be allowed near the factory.

Sitio Maguindong, Luakan, Dinalupihan, Bataan was chosen by sugar sweet corporation because
this is best region of all sugar plantation in the Philippines due to its abundant supply of labor
will not be difficult to achieve as most barrio folk are quite hardworking and industrious.
Another reason is because of availability of raw materials and have favorable conditions. The
plant would be erected near the national highway which will enable the transportation of
finished product to the opposite provinces of course, sugar central will increase their yearly
supply of sugar production thus helping the sugar industry.

The determination where sugar cane factory is to be located is purely an agricultural one. So
far, it is referred to the tract of land which has to be adequate for growing sugar cane for a
period of years and the location where climate condition and rainfall are much that successful
crops to be expected. As Bataan is situated geographically near the center of the Philippines,
the finished product can be easily transported to the neighboring provinces.

Conclusions:
The purpose of this project is to generate more jobs and supply to help our economy grow.
Since this project is situated Bataan, company will hire Filipino Laborers in sugar cane
manufacturing. Laborers near the company site and more preferable to the employees to
ensure promptness can do overtime work when needed Another important reason is that
people from nearest place can easily transport with their convenience since the company is
small, the working force will be required from town itself or its vicinity.

The company on the other hand will give assurance to the workers like a good working
condition, facilities for a conductive maintenance of their health incentives and many other
benefits required by the labor code, plus benefits given by the company itself.

The services offered are proposed plant site at Sitio Maguindong, Luakan, Dinalupihan, Bataan
offers a plentiful supply of water and power. The site offers adequate supply of water for
growing sugarcane, and power for the production of sugar. It also offers adequate supply of
laborers, which is considered more important than all the other factors, especially when skilled
and unskilled laborers are required.

Recommendations:
Since this a plant producing a various waste material produces pollution classified as solids,
gaseous or liquid. Solid waste directly related to a loud pollution gas liquid to air and water
pollution, although all of them have combined and interrelated effects on pollution. The Sweet
Sugar Incorporated recommend this method. The company has a way to eliminate or dispose
the waste properly using a method of waste disposal.
These are ways on how Sweet Sugar Incorporated manage its ways when the plant started to
operate:

1. Eliminate of source. The first approach to a waste disposal problem requires a careful
attention of the source of pollutants.
2. Recovery of waste products. Before deciding how to discard waste materials, the engineer
should always think for recycle, reuse or for sale.
3. Regulate how to fit dilution
4. Divert waste to other points
5. Waste treatment. – A very expensive process the recent encountered by the major cities of
the world due to smog problem and the question as due to how to dispose gaseous waste,
electrostatic precipitators, aggrometrators, washers and many other kinds of equipment have
been used to remove atmospheric contaminants.

Disposal of solid waste materials on land is always a complicated problem, incineration and
burying are possible solution and the best is by recycling. A judicious plant design eliminates a
potential hazardous operation should be separated from various plant facilities and sufficient
protection is made.

Possible sources of fire by eliminating all the unnecessary ignition sources such as flame, spark
or heated material, welding, smoking, static electricity and the spontaneous combustion of
waste materials. Chemicals can cause dangerous burns and accidents are bound to occur
rotating sections of equipment should be amply protected to prevent accidents.

References: sampleproposal.net/sample-feasibility-study/sugar-mill-feasibility-study