MINI COLD STORAGE & ICE/FISH TRADING

BUSINESS OPPORTUNITY PROJECT SUMMARY

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SOPREX Foundation
SOPREX/MIND-BIOS Bldg., MSU-IIT Campus
A. Bonifacio Ave. Tibanga, Iligan City. 9200
(063) 223-8077 / FAX: (063)2238481
 Partnerships in Local Enterprise Development
and Governance Sustainability (PLEDGES) Program

BUSINESS OPPORTUNITY PROJECT SUMMARY

Mini Cold Storage & Ice/Fish Trading

PROJECT CONCEPT/DESIGN:

The Project involves the retail of block ice and trading of high-value fishes. For this purpose two (2) units of
cold storage facilities shall be fabricated and installed in the Project site. One unit shall be used for storage of
block ice with a capacity of 24 ice blocks or 3 MT at 125 kgs per block. The other unit, designed as walk-in to
allow ease of product handling, shall be used for storage of fish with a maximum capacity of 1 MT. Fabricated
all-steel, each cold store unit is estimated to weigh only 2 MT and is thus easily transportable to any remote
place with road access.

Using a V-type or belt-driven 3HP compressor for each cold store unit, the project can operate continuously
during power outages by using a small stand-by diesel generating set of 7HP or more. For this reason, the Mini
Cold Store can also be located in remote fishing villages where electricity is not available.

The Project shall purchase block ice from ice plants in the capital city at the estimated price, delivered, of P130
per block and retail the ice to local consumers, primarily small-scale fishers at a mark-up of 25%. The Project
shall also purchase the fish caught or harvested by the local fishers/fish farmers at an average cost of P60/kg
and sell to consumers in nearby urban centers at a mark-up of 50%.

OPERATING VOLUMES: BLOCK ICE – 24 blocks (3 MT)/day; FISH STORAGE: 1 MT storage, 1

MT/week

ANNUAL GROSS INCOME: PhP 6.12 million

ANNUAL NET INCOME BEFORE INTEREST & TAXES: PhP 1.11 million

ESTIMATED TOTAL PROJECT COST: PhP 1.09 million

COST OF COLD STORAGE UNITS: PhP 200,000 (3 MT Block Ice Storage) and PhP 150,000 (1 MT Fish
Storage)

RETURN ON INVESTMENT RATE (R0I) /PAYBACK PERIOD: 102.1% p.a. / 1.0 year

FOR MORE INFO, PLEASE CONTACT:

SOPREX Foundation The LogoTRIPhilNet member organization nearest you.

MSU-IIT Campus, Tibanga, Iligan City 9200 Contact SOPREX Foundation for this member’s contact
Tel./Fax: (063)223-8481/223-8077 person(s), agency, address and contact phones/fax.
Cell Phones: 0918933172 (Maya); 09189420065 (Yesnoy)
 Schedule 1. ESTIMATE OF TOTAL PROJECT COST

I. PRE-OPERATING EXPENSES
1 Consultancy Fee (FS/Detailed Engineering Plans Prep & Organizing/Training) 50,000
2 Business Licenses & Permits 5,000
3 Travel/Perdiems & Business Meetings 10,000
4 Miscellaneous 5,000
Sub-Total 70,000
II. FIXED ASSETS ACQUISITION
1 Land & Land Improvements
a. Land: 100 sqm @ P1000/sqm 100,000
b. Warehouse: 50 sqm @ P2,000/sqm 100,000
Sub-Total Land & Land Improvements 200,000
2 Machinery and Equipment
a. Ice Storage, 1 unit, 3HP Single Phase, 3MT (24 blocks) capacity 200,000
b. Agri-Fishery Products Storage, 1 unit, 3HP Single Phase, 1MT capacity 150,000
c. Diesel Engine, 10HP, 1 uint 50,000
d. Ice Crusher w/ 1HP Electric Motor, 1 unit 5,000
e. Materials Handling Tools/Equipment: 1 Lot 1,000
Sub-Total Machinery and Equipment 406,000
TOTAL FIXED ASSETS ACQUISITION 606,000
III. INITIAL WORKING CAPITAL
Cost of Sales 382,329
Administrative/Selling Overhead 28,131
TOTAL INITIAL WORKING CAPITAL 410,460
TOTAL INVESTMENT REQUIREMENTS 1,086,460

Schedule 2. BASIC ASSUMPTIONS

A. ICE STORAGE/RETAILING
1 Days of Operation Per Year: 365
2 Volume of Sales (No. of Ice Blocks): 24 blocks/day 8,760
3 Unit Cost of Ice Blocks, delivered (Pesos per Block) 130
4 Retail Gross Profit Margin (% of Purchase Price): 25%
5 Direct Labor Cost (% Commission of Sales): 2%
6 Ice Cold Storage Operations Overhead Expenses
a. Energy: Diesel Engine Fuel & Oil Consumption (Pesos Per Day) 158
b. Miscellaneous Expenses (Pesos Per Month) 50
c. Repairs & Maintenance Factor (% Per Annum of Fixed Assets) 15%
d. Depreciation Factor (Average Economic Life in Years of Fixed Assets): 5
B. FISH STORAGE/TRADING
1 Days of Operation: 365
2 No. of Cycles of Fish Buying/Trading @ 7 days/cycle 52
3 Volume of Sales (No. of Kgs) @: 1,000 kgs. per cycle 52,143
4 Unit Buying Price of Fish, 1st Class (Pesos/Kg) 60
5 Wholesale Trading Gross Profit Margin (% of Buying Price): 50%
6 Direct Labor Cost (% Commission of Sales): 2%
7 Fish Cold Storage/Trading Operations Overhead Expenses
a. Energy: Diesel Engine Fuel & Oil Consumption (Pesos Per Day) 158
b. Ice Consumption Rate During Transport to Market Outlets (% of Fish Volume) 33%
c. Miscellaneous Expenses (Pesos Per Month) 50
d. Repairs & Maintenance Factor (% Per Annum of Fixed Assets) 15%
e. Depreciation Factor (Average Economic Life in Years of Fixed Assets): 5
C. ADMINISTRATIVE/SELLING OVERHEAD EXPENSES
1 Basic Monthly Salaries & Wages, Administrative & Selling Personnel:
1 Supervisor/Cashier 12,000
1 Bookkeeper/Clerk 6,000
Total Basic Monthly Salaries & Wages, Administrative & Selling Personnel: 18,000
2 SS & Other Employee Benefits (% of Basic Salary/Wage Rate) 15%
3 Utilities (Light, Water, Telephone) Cost per Month (Pesos) 1,500
4 Other Administrative & Selling Overhead (% of Gross Sales) 5%

Schedule 3. PROJECTED ANNUAL INCOME STATEMENT

GROSS SALES INCOME: AMOUNT (PhP)

Sale of Block Ice 1,423,500
Sale of Fish 4,692,857
Total Gross Sales Income 6,116,357

Less: COST OF SALES:

Direct Labor 122,327
Block Ice
Purchases 1,138,800
Fish Purchases 3,128,571
Ice Consumption, Fish Trading 22,369
Energy 114,975
Repairs and Manintenance 60,900
Depreciation 81,200
Total Cost of Sales 4,669,143

GROSS PROFIT ON SALES 1,447,214

Less: ADMINISTRATIVE & SELLING OVERHEAD EXPENSES

Salaries & Wages (Basic): 248,400
Utilities (Light, Water, Telephone) 18,000
Other Administrative & Selling Overhead Expenses 71,175
Total Administrative & Selling Overhead Expenses 337,575

NET INCOME BEFORE INTEREST & TAXES (NIBIT) 1,109,639

RETURN ON INVESTMENT (ROI) RATE (% p.a. on total project cost) 102.1%

PAYBACK PERIOD ON TOTAL PROJECT COST (YEARS) 1.0