I
JDDALL ICEBERG LETTUCE PRODUCTION
SALCE, JOSHUA P.
PLEÑOS, ANGELICA E.
GALLO, LIZZA JOYCE C.
SALCEDO, LINDSAY O.
GABAT, DANNIBELLE D.
DUMPA, DEVOREUX GRAUBEN M.
A FEASIBILITY STUDY SUBMITTED TO THE FACULTY OF THE COLLEGE
OF AGRICULTURE MINDANAO STATE UNIVERSITY – GENERAL SANTOS
CITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS IN
ABM 166: FEASIBILITY STUDY
JUNE 2021
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TABLE OF CONTENTS
Page Title Page…………………………………………………………………………….. I
Table Of Contents……………………………………………………………………….… II
Acknowledgement…………………………………………………………………..…….. VII
Biographical Sketch……………………………………………………………………….. VIII
I. Project Summary …………………………………………………………………. 1
II. Introduction …………………………………………………………………… 4
Project Timetable ……………………………………………………… 6
III. Market Study
Product Description ……………………………………….………. 7
Demand…………………………………………………………….. 7
Supply …………………………………………………………………………………. 9
Demand And Supply Analysis…………………………………… 10
Price Study ………………………………………………………..……………………… 11
Contracts ………………………………………………………………….……………. 12
Factors Affecting the Market ……………………………………………..………. 34
Marketing Program …………………….………………………………………………. 34
IV. Technical Study
The Product ……………………………………………………………………………………. 37
Project Location ……………………………………………………………………………… 39
Structural Design ……………………………………………………………………………. 43
Production Schedule ………………………………………………………………………… 45
Source of Raw Materials ……………………………………………….…………………. 51
Production Process …………………………………………………………..……………… 51
Farm Tools And Equipment ……………………………………………………………… 55
Fixed Asset Requirement …………………………………………………………………. 58
Total Project Cost …………………………………………………..……………………….. 61
III
V. Financial Study
Major Assumptions ………………………………………….…………………………… 64
Schedules …………………………………………………………………………………….. 67
Statement Of Cash Flow ………………………………………………………………… 77
Balance Sheet………………………………………………………….. 78
Income Statement……………………………………………………………..…………….. 79
Financial Analysis …………………………………………………………………………... 80
VI. Organization And Management Study
Organization Structure …………………………………………………………………….. 84
Qualifications And Functions of The Workers ……………………..…………….. 84
VII. Socio-Economic Feasibility…………………………………………………
86
VIII. Environmental Impact …………………………………………………………………………
88
IX. Conclusion ……………………………………………….………………………………………..
89
X. Recommendations ……………………………………………………………..……………….
90
References …………………………………………………………………………………………………….
91
IV
Table
Page
Table 1. Project Timetable ……………………………………………………
6
Table 2. Historical demand of Cabbage in Region X11 2015-2019 ……………
8
Table 3. Projected Demand of Cabbage in Region XII 2020-2024…………………
8
Table 4. Historical Supply 2015-2019 …………………………………….………..
9
Table 5. Projected Supply of Iceberg Lettuce in South Cotabato 2020-2024 …………. 9
Table 6. Historical Unsatisfied Demand of Iceberg Lettuce in South Cotabato 2017-2021 10
Table 7. Projected Unsatisfied Demand of Iceberg Lettuce in South Cotabato 2022-2026 10
Table 8. Historical Wholesaler Price of Iceberg Lettuce, 2017-2021 …………………… 11
Table 9. Projected Price of Iceberg Lettuce, 2022-2026 ………………………………….. 11
Table 10. Nutrient Content of an iceberg lettuce………………………………………….. 37
Table 11. Cost of Water System Installation for Plantation Area ………………………….42
Table 12. Cost of Electricity Installation for Plantation Area ……………………………. 42
Table 13. 5 Years Production Schedule …………………………………………………. 47
Table 14. Promotional Expense………………………………………………………….. 50
Table 15. Cost of Raw Materials (per planting cycle). ……………………………………. 51
Table 16. Cost of Nursery ……………………………….…………………………………….……………… 52
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Table 17. Cost of plant establishment (per planting cycle). …………………………… 52
Table 18. Cost of Fertilizer (per planting cycle). ………………………………………… 53
Table 19. Cost of Fungicide (per planting cycle)……………………………………….. 54
Table 20. Packaging Cost (per planting cycle)…………………………………………… 55
Table 21. Farm Tools and Equipment …………………………………………………… 55
Table 22. Cost of Farm tools and Equipment …………………………………………… 58
Table 23. Salaries Expense ……………………………………………………………… 58
Table 24. Wages Expense………………………………………………………………… 58
Table 25. Fringe Benefits Expense ………………………………………………………. 59
Table 26. Permits and Licenses ………………………………………………………….. 59
Table 27. Rent Expense………………………………………………………………….. 59
Table 28. Miscellaneous Expense………………………………………………………… 59
Table 29. Repair and Maintenance Expense ……………………………………………… 60
Table 30. Qualifications of workers………………………………………………………. 85
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Figure
Page
Figure 1. Channel of Distribution …………………………………………………………………….
35
Figure 2. Project location (Aerial View) …………………………………………….
40
Figure 3. Farm Lay-out ………………………………………………….………..…
41
Figure 4. Production Outlet …………………………………………………………
43
Figure 5. Floor Plan …………………………………………………………………
44
Figure 6. Organizational Structure ……………………………………………………
84
VII
ACKNOWLEDGEMENT
First and foremost, the members would like to give thanks to our Almighty God for the
strength, knowledge and wisdom that He has given in order for the researchers to move forward amidst
pandemic and obstacles in the conduct of this study.
The researchers would also like to give thanks to Mr. Nonnie Ducang, Mr. Renante Piang and
Mrs. Jenny Tule for lending their time for an interview which served as an important reference in this
feasibility study.
To the loving parents of the researchers for their emotional and financial support, ceaseless
care and love, and for the motivation that the researchers needed in continuing for this journey.
Gratitude is also extended to the researchers’ friends and siblings: Nicole, Lawrence, Joanna,
Lizzel, Sofia and Daniela.
Gratitude is also extended to Mr. Neil Jay C. Casion for being the researchers’ driver and
photographer.
Gratitude is also extended to Gabat and Gallo Family for the accommodating the researchers.
Most importantly, the researchers would like to express their deepest gratitude to Prof. Kringle
Marie P. Mercado for her patience, guidance and advice all throughout the duration of this study. She
was one of the major keys in making this study successful.
To Prof. Keno Jay M. Balogbog and Prof. Helen I. Perpetua, deepest gratitude is also extended
for their technical support in improving the output of the researchers.
This study would not be successful and possible without the help of the people mentioned
above, thus, the researchers want to express and extend their great appreciation and gratitude for them.
VIII
BIOGRAPHICAL SKETCH
Joshua P. Salce
The proponent was born on the 2nd day of June in the year 2000 at General Santos City. He
is the eldest among the 2 children of Mr. Renee R. Salce and Mrs. Josephine P. Salce. His friends
and college buddies call him “Nonoy” or sometimes “Josh”. He finished his elementary education
at the Romana C. Acharon Central Elementary School and his secondary education at Mindanao
State University, General Santos City. He continued his schooling and pursued his aspirations at
Mindanao State University in General Santos City, taking up a bachelor’s degree in Agricultural
Business Management.
Angelica E. Pleños
She was born on the 6th day of April, 1999 in General Santos City. She is the daughter of
Charity M. Edillo and Engelbert C. Pleños. Her relatives used to call her “Langling” while she was
called “Plens, Ange, and Nene” by her classmates and friends. She finished her elementary education
at Fatima Central Elementary School. A Media Arts student in her junior year at General Santos City
National High School and finished Tourism operations in her senior year at STI college. Now she is
pursuing her dream by taking up a bachelor’s degree in Agricultural Business Management at
Mindanao State University-General Santos City.
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Lizza Joyce C. Gallo
She was born in San Pedro District, Pagadian City on January 16, 2000. Her friends and her
college buddies call her “Little” or “Liz”. Nepthali Malilay Gallo and Jocelyn Cabasag Gallo are her
parents. Her younger sister is Lizzel Jane Cabasag Gallo and she is currently in her fourth grade. She
finished her elementary education at Tupi SDA Elementary School, junior high at Saravia National
High School and her senior high at Tupi National High School. She continued he studies and pursued
her goals at Mindanao State University in General Santos City, acquiring a bachelor’s degree in
Agricultural Business Management.
Lindsay O. Salcedo
People who know her commonly call her “Saysay”. She is 21 years of age and was born and
raised in General Santos City. She is the daughter of Mr. Rolando Salcedo and Mrs. Daisy Salcedo.
She has one brother named Lawrence Salcedo who is currently at his 1st Year in College at Mindanao
State University. She finished her elementary education at Jose C. Catolico Sr. Elementary School and
her secondary education at Brokenshire College SOCCSKSARGEN Inc. As she continue pursuing her
dreams, she enrolled at Mindanao State University— Gensan Campus, taking up Agricultural Business
Management and currently at her 4th Year.
Dannibelle D. Gabat
She was born in Tampakan, South Cotabato, on May 16th. Mr. Daniel N. Gabat Sr. and Mrs.
Melinda D. Gabat’s eldest daughter. Palian Elementary School was her primary school, while Tupi
National High School was her secondary school. She then went on to Mindanao State University to
pursue her aspirations, earning a bachelor’s degree in Agricultural Business Management.
Devoreux Grauben M. Dumpa
She was born in Polomolok, South Cotabato on the 22nd day of October, 1999. She is 21 years
of age and was born and raised in Polomolok, South Cotabato. She is the daughter of Mr. Jaime R.
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Dumpa Jr. and Mrs. May Ann M. Dumpa. She has two younger sisters namely Nicole Joyce M. Dumpa
and Jaye Antoinnette M. Dumpa and one younger brother namely Jamie Caesar M. Dumpa. She
finished her elementary education at Matutum View Baptist Academy Incorporated, her junior
secondary education at Alabel National Science High School and senior secondary education at
Mindanao State University – Senior High School Department. As she continue pursuing her dreams,
she enrolled at Mindanao State University — Gensan Campus, taking up Agricultural Business
Management and currently at her 4th Year.
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PROJECT SUMMARY
Market Feasibility
The demand for Iceberg Lettuce, is superior than the prevailing supply, leaving an unsatisfied
demand. In General Santos City, KCC is one of the major contactor of Iceberg Lettuce in which his
major contract supplier of Iceberg Lettuce is the Sueno Producer in Tupi, South Cotabato,Mr.Sueno
signed a consignment with KCC to pay for the space of the groceries freezer and the KCC remit to
then on how much is the total cost per month. The demand of the Contractual Buyers in South Cotabato
is high.KCC having the demand of 10% of the harvest product,30% to Worijib Gensan and Koronadal
branch, another 10% to Samgyeopsal,10% to messy burger and 5% to Kalsangi clubhouse. There will
be also individuals who wants the Iceberg Lettuce,10 to Kian Gonzales from General Santos, 5% to
Mry ann Castaneda from the municipality of Polomolok,5% Melinda Auman from the Tantangan, 5%
to Jocelyn San Jose from Banga,5% Daisy ATI from Koronadal and lastly 5% from Charity Donor
coming from the Surallah. Due to the increasing demand, Iceberg lettuce Producers in Tupi, South
Cotabato can’t fully provide the demand due to the lack of supply. Thus, the proponents want to
establish this project to cope up with the unsatisfied demand.
. For the past 5 years, the lettuce price was constant. The price was based on the iceberg
lettuce farmers whom we interviewed. The trend of the price is constant which is based from
contractual buyers price agreement with the producers.All of the harvested iceberg lettuce will be
delivered to its contract buyers. The lettuce will be field-packed to maintain the freshness upon the
delivery. Mode of payment will be cash on cash basis, payment upon the delivery.
Technical Feasibility
JDDALL lettuce farm will be established at Purok Glandang, Barangay Kablon, Tupi, South
Cotabato. The project will cover a land area of 10,000 sq. m. (100m x 100 m). The area will have the
production outlet and 26,000 heads of lettuce with the planting distance of 0.38m x 0.30 m, also, it is
where the wholesale transactions will be conducted and enable customers to pick up their products
directly from our farm after packaging. JDDALL will provide fresh lettuce to the customers and ensure
that they are satisfied.
Lettuce comes in various of varieties. The proposed project will use iceberg variety. Lettuce
seeds need to be first planted in a seedbed/nursery. The edge of Iceberg on other kinds of lettuce is
that, it is the most popular vegetable for salads and sandwiches increases. It’s production on a
commercial scale in this country has grown as fresh salads are becoming increasingly common table
fare for many Filipinos who want a healthy lifestyle. As to the weather and temperature, maximum
