GRANT ON ORGANIC FARMING

Business Development Plan

On

REIN ORGANICS: HIGH VALUE

VEGETABLE PRODUCTIONS
Name of Project

By:

REIN ASHLEY A. VALDEZ

Name of Grantee

June 9, 2023
Date Prepared

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A. GENERAL INFORMATION

Project Title : REIN ORGANICS: HIGH VALUE VEGETABLE PRODUCTIONS

Grantee : Rein Ashley A. Valdez

Type of Business : (/ ) Crop Production

Specify type of crop: Squash, Eggplant, String

Beans, Bitter Gourd, Green Chili Pepper

( ) Livestock Production

Specify type of livestock: _______________

( ) Fisheries

( ) Trading

( ) Processing

( ) Integrated Farming

( ) Others: _________________________________

Business Address : Brgy. Anonas East, Urdaneta City, Pangasinan

Contact Person : Rein Ashley A. Valdez

Designation : Owner/Manager

Contact Number : 09150543533

Email Address : Reinashley.valdez@yahoo.com

Total Project Cost : Php. 150,000.00

Vision

A leading integrated farm destination that provides best agri-tourism practices to

local and international tourist in support to sustainable organic food production.

Mission
 Showcase the best practices in integrated organic farming.
 Promote Agri-tourism to local and international tourist.

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  Create and promote agriculture-related job opportunities to the community.

Project Description
Rein Organics aims to produce high-value vegetable crops that are naturally produced and
consistent with organic farming. The venture will be established in the property located at
Urdaneta City, Pangasinan. Construction of the Mokusaku facility will commence upon
release of the grant, this will be the primary source of the fertilizer and pesticides that will be
utilized for the organic garden. Further, land preparation as well as preparation of the
planting materials will be simultaneously undertaken as the sources has already been
identified. All other activities will follow accordingly. It is expected that the initial farm
produce will be available in3 and half months and marketing will commence on the same
dates.

The rationale behind growing organic high-value vegetable crops is multi-faceted and can be
attributed to several factors. Here are some key points that support the rationale for
cultivating organic high-value vegetables:

1. Health and Environmental Concerns: Organic farming practices prioritize using natural
methods to grow crops without synthetic pesticides, herbicides, or genetically modified
organisms (GMOs). Organic vegetables are grown using natural fertilizers, such as compost
and animal manure, which reduce the risk of harmful chemical residues on the crops and in
the environment. By choosing organic high-value vegetables, consumers can reduce their
exposure to potentially harmful chemicals and promote environmental sustainability.

2. Nutritional Benefits: Organic high-value vegetables are often perceived as having higher
nutritional value compared to conventionally grown counterparts. While research results on
this topic have been mixed, some studies suggest that organic crops may have slightly higher
levels of certain nutrients, such as vitamin C, iron, magnesium, and antioxidants.
Additionally, organic farming practices aim to enhance soil health, which can contribute to
improved nutrient content in the produce.

3. Flavor and Quality: Many organic high-value vegetables are known for their superior
flavor and quality. Organic farming practices focus on soil fertility, which can lead to better-
tasting crops. By avoiding the use of synthetic fertilizers and pesticides, organic farmers
promote a healthier soil ecosystem that enhances the flavor profile of the vegetables. This
can be particularly appealing to consumers who prioritize taste and culinary experiences.

4. Market Demand and Premium Pricing: There is a growing consumer demand for organic
high-value vegetables, driven by increased awareness of health and environmental issues.
Consumers are willing to pay a premium price for organic produce, which can lead to higher
profitability for farmers. Organic high-value vegetable crops often fetch better prices in the
market, providing economic incentives for farmers to adopt organic farming methods and
invest in high-value crop varieties.

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 5. Certification and Traceability: Organic farming requires adherence to strict standards
and regulations. By obtaining organic certification, farmers can provide assurance to
consumers about the authenticity and quality of their products. Organic certification also
ensures traceability, allowing consumers to track the origin and production methods of the
vegetables they purchase, further increasing transparency and trust.
6. Long-term Sustainability: Organic farming practices emphasize the preservation and
enhancement of soil health, biodiversity, and ecosystem services. By avoiding the use of
synthetic chemicals, organic farmers promote long-term sustainability by minimizing soil
degradation, reducing water pollution, and protecting beneficial insects and wildlife. This
approach fosters a more balanced and resilient agricultural system, which can support future
generations and contribute to overall ecological well-being.

In summary, the rationale for cultivating organic high-value vegetable crops stems from
concerns related to health, environment, taste, market demand, and long-term sustainability.
Organic farming methods align with these concerns and offer a range of benefits, attracting
consumers who prioritize quality, nutrition, and responsible agricultural practices.

B. EXECUTIVE SUMMARY

The project is expected to generate sales of Php51,000.00 on its first year of operations,
Projections are made based on available data provided by the CAO and on the forecast of
actual production based on the prevailing market price. The yield/area will vary but will
eventually be covered all throughout by the next cropping season. Generally, organically
produced vegetables have higher market demands and are considered as highly profitable
given the target market for the production.

C. PROFILE OF THE OWNER

Name of Agriprenuer : Rein Ashley A. Valdez

Home Address : Brgy. Anonas East Urdaneta City Pangasinan

Contact Number : 09150543533

Email Address : Reinashley.valdez123@yahoo.com

Birth Date (mm/dd/yyyy) : May 26, 2002

Sex : Male

Marital Status : single

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 Single Parent : No

Indigenous Group (if applicable) : None

Person with Disability : None

Experience/years in the
: 1 year related experience
business of similar project

Other relevant information:

Current Sources of Income

Source of Income
Amount (Php) per Period
(Crop production, livelihood project, odd (Monthly/Annually/Cycle)
job etc.)

Allowance Php: 60,000,00

TOTAL Php: 60,000,00

Assets

Asset
Amount (Php)
(Cash, receivables, equipment, house, and lot)

Grant 150,000.00

TOTAL 150,000.00

D. MARKET

Market Analysis

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 Organic vegetable production in the Philippines has been gaining significant attention and
market demand in recent years. The growing interest in healthier food options,
environmental sustainability, and the desire to support local farmers has contributed to the
rise of organic farming practices in the country. Here is a market analysis of organic
vegetable production in the Philippines:

Market Size and Growth: The organic food market in the Philippines has been experiencing
steady growth. According to a report by Grand View Research, the Philippine organic food
market size was valued at USD 120 million in 2020 and is projected to grow at a compound
annual growth rate (CAGR) of 10.6% from 2021 to 2028.

Increasing Consumer Awareness: Consumers in the Philippines are becoming more aware of
the health and environmental benefits associated with organic vegetables. There is a
growing preference for pesticide-free and chemical-free produce, which has led to an
increased demand for organically grown vegetables.

Government Support: The Philippine government has been promoting organic farming
through various initiatives and programs. The Department of Agriculture has implemented
organic farming training programs, provided financial assistance to organic farmers, and
established organic certification standards to ensure the authenticity of organic produce.

Export Opportunities: The Philippines has significant export potential for organic
vegetables. Countries such as Japan, the United States, South Korea, and European nations
are key importers of organic produce. The demand for organic vegetables in these markets
provides opportunities for Filipino organic farmers to expand their reach and increase
exports.

Challenges: Despite the positive outlook, organic vegetable production in the Philippines
faces several challenges. Limited awareness and understanding of organic farming practices
among farmers, lack of access to organic inputs and technology, and the high cost of organic
certification are some of the challenges that need to be addressed to further develop the
sector.

Competitive Landscape: The organic vegetable market in the Philippines is becoming

increasingly competitive. Large-scale commercial farms, small-scale organic farmers, and
community-supported agriculture initiatives are all vying for market share. Differentiating
products through unique varieties, packaging, and marketing strategies can help organic
vegetable producers stand out in the market.

Distribution Channels: Organic vegetables are primarily sold through various distribution
channels, including supermarkets, organic specialty stores, farmers' markets, and direct-to-
consumer models such as community-supported agriculture (CSA) and online platforms.
Developing efficient and reliable distribution networks is essential for reaching consumers
in both urban and rural areas.

Consumer Preferences: Filipino consumers have shown a preference for locally grown
organic vegetables. They value freshness, quality, and traceability of the produce. Building

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 trust and providing transparent information about farming practices and certification can
help organic vegetable producers meet consumer expectations.

In conclusion, the organic vegetable production market in the Philippines is experiencing

growth due to increasing consumer awareness, government support, and export
opportunities. However, there are challenges that need to be addressed to fully realize the
sector's potential. With the right strategies, organic vegetable producers can tap into the
growing demand for healthy and sustainable food options in the Philippines and
international markets.

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 Solution Who will Benefit
Problem or Gap in the
(The product or service you (Your target Customer
Market
want to offer) group/s)

Availability of organic Increase production of Organic growers/farmers

vegetables in the market organic vegetables by
promoting and conducting Health-conscious
training for organic farmers consumers
and enthusiasts

High cost of organic Increase production to Organic growers/farmers

vegetables in the market increase supply
Health-conscious
consumers

Target Buyers

*Volume Quantity to
Name of Target Selling Price Mode of
Product Requirement be Supplied
Buyer per unit Payment
of the Buyer by the project

Green Chili Public Market 100 kilos 100 kilos Php 120.00 Cash on
Pepper Supermarket Delivery

Eggplant Public Market 100 kilos 100 kilos Php 80.00 Cash on
Supermarket Delivery

String Beans Public Market 100 kilos 100 kilos Php 100.00 Cash on
Supermarket Delivery

Bitter Gourd Public Market 100 kilos 100 kilos Php 140.00 Cash on
Supermarket Delivery

Squash Public Market 100 kilos 100 kilos Php 70.00 Cash on
Supermarket Delivery

Add more rows if needed

*needed as of now

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 E. MANAGEMENT

Do you have experience in farming or managing agri-related businesses?

(/) YES. What type of business?
naturally produced integrated farming,
How long have you been farming/doing business? 3 years
( ) NO.

Organizational Structure

F. TECHNICAL ASPECT

Is your project location inspected and certified suitable (by MAO/Buyer)?

(/) YES ( ) NO

Supply Channel
Inputs/Equipment to produce Source/Supplier of Quantity Cost per unit Total
the product Input
(Add Contact
Information)

1. Farm Implements/Tools Agricultural Supply 5,000.00 5,000.00

2. Seeds BPI/Seed Growers 10,000.00 10,000.00

3. ANC Reotutar 5,000.00 5,000.00

4. Organic Fertilizer Internally made -

5. Mokusaku Facility 30, 000.00 30,000.00

6. Vermicast Housing 40,000.00 40,000.00

7. Transportation 20,000.00 20,000.00

Total Php110,000.00

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 Labor Requirement

Type of Work Number of Wage per Man-Days total

(ex. Construction, farm preparation, Workers Needed Person per Day
farm work)

Land Preparation Two (2) 400.00 5 days 4,000.00

Vermicast Labor Two (2) 400.00 2 days 1,600.00

Planting Two (2) 400.00 3 days 2,400.00

Farm Maintenance Two (2) 400.00 30 days 24,000.00

Harvesting Two (2) 400.00 2 days 1,600.00

Marketing and Delivery One (1) 400.00 1 day 400.00

Mokusaku Establishment Three (3) 400.00 5 days 6,000.00

Total Php40,000.00

What are the processes involved in producing the product?

 Land Preparation
 Planting
 Farm Maintenance
 Harvesting
 Marketing and Delivery

What are the available utilities in your proposed project site?

Is it available all year round?
(/ ) Electricity (/ ) YES ( ) NO
(/ ) Water (/ ) YES ( ) NO
(/ ) Communication Network (/ ) YES ( ) NO

G. FINANCIAL ASPECT

The consolidated financial forms are in Excel File: Financial Aspect

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 Financial Requirement
See Annex A: Farm Plan and Budget

Projected Income Statement

See Annex B: Projected Income Statement

Projected Cash Flow

Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5

INITIAL CAPITAL/BEGINNING 82,000 46,400 71,800 97,200

BALANCE

ADD: CASH INFLOW

Grant Proceeds 150,000

Capital Infusion 50,000

Cash Sales 51,000 102,000 163,000 163,000 163,000

(Add back Depreciation)

Collections on Credit Sales

Income from investment,

savings, donations

Total Cash Inflow 251,000 184,000 209,400 234,800 260,200

LESS: CASH OUTFLOW

Materials, Labor, Overhead, etc. 150,000 115,600 115,600 115,600 115,600

Operating Expenses 7,000 10,000 10,000 10,000 10,000

Bill Payments 12,000 12,000 12,000 12,000 12,000

Other Project Cash Spending

Loan/ Interest Payment

Total Cash Outflow 169,000 137,600 137,600 137,600 137,600

ENDING BALANCE 82,000 46,400 71,800 97,200 122,600

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 Financial Ratios

Financial Ratios Formula Rate

Return on Investment ¿
[ ( Annual Net Income ) 82,000
Grantee Equity (50,000 )+ Grant (150,000) ]
× 100 41%

Return on Equity ¿ ( Annual

Grantee' s Equity (50,000) )
Net Income(82,000)
× 100 164%

Profitability Rate ¿ ( Annual

A nnual Sales(51,000) )
Net Income(82,000)
× 100 160%

Grant (150,000)
Return Period ¿ 1 year 2 months
(Net income (82,000)x No. of period per year )(1)

*Annual Net Income from the Project

H. Proposed Work Plan

ACTIVITIES Year 1 Year 2 Year 3 Year 4 Year 5

Land Preparation

Planting

Farm Maintenance

Harvesting

Marketing and Delivery

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