FEASIBILITY STUDY

I - PROJECT INFORMATION

 Project Title : PRODUCTION OF SEAWEED FOLIAR

FERTILIZER

 Implementing Institution : Southern Philippines Agri-business and

Marine and Aquatic School
of Technology

 Cooperating Agency : BFAR, DTI, FPA, SMARRDEC, PCAMRD

DOST

 Project Leader/Persons Involved :

 Project Beneficiaries : Junior and Senior Students/Alumni

 Project Duration : November 2008 to December 2009

 Total Project Cost : Php 640,643.00

 Sources of Financing :

o PCAMRD-DOST
o SPAMAST

II – RATIONALE

Seaweed is one among the potential income earner today both in the local and
export markets. Whereby, Philippines stand as the world’s biggest supplier of the
commodity satisfying 80% of the total world demand. Studies show that Mindanao
accounts for 71% of the seaweeds production of the country. About 72% of the estimated
100,000 families involved in seaweeds farming of the entire Philippines come from
Mindanao.

Davao del Sur is one among the provinces in Mindanao with areas devoted to
seaweed farming providing livelihood particularly to coastal inhabitants. At present, fresh
seaweeds are sold out in the local markets nearby the farming sites for consumption while
dried seaweeds are shipped to Cebu and Manila to be processed further and utilized for
various purposes like: solidifying agents, stabilizer, binder and thickener of processed
food and non-food products.
 Being considered as a potential income earner which contributed to the country’s
economy, the thrust of the government at present for the seaweed development is to
increase production through improvement of culture techniques, post harvest and
processing activities for a sustainable economic activity especially among coastal
households.

III – PROJECT DESCRIPTION

The proposed production of seaweed foliar fertilizer enterprise will be established

in SPAMAST – College of Agricultural Sciences, Matti, Digos City. It will have three
components: 1) capability enhancement, 2) production of seaweed raw material and 3)
production of the foliar fertilizer.

The first component shall include training of project leader and students on
entrepreneurship and marketing and students’ training on production technology for
seaweed farming and foliar fertilizer production. The training on the production of the
raw material for the foliar fertilizer will be done in collaboration with the Local
Government Unit (LGU) and the Bureau of Fisheries as well as the growers in the area
while the foliar fertilizer production will be conducted by the project leader.

The second component which is the foliar fertilizer production will follow the
production practices adopted in the project site. A 0.25 hectare area in Punta Biao, Davao
del Sur shall be rented for the seaweed production, the raw material of the proposed
project. The site shall also serve as demonstration farm for the students and seaweed
growers as well in the area, since the project requires certain age and quality of raw
materials.

The third component shall have the following features: In the project site, a
cleaning and 20m x 20m draining facility will be provided. In the processing site (which
will be established at SPAMAST-CAS Campus) will include the processing area with a
10m x 10m fabricated platform where seaweeds will be laid attached to the drippings
collector drums, packing area and storage room.

Students who are in their junior and senior years will venture on seaweed foliar
fertilizer enterprise to better prepare them for entrepreneurship after finishing their
respective courses. The proposed project will be implemented through a direct
supervision of a qualified project leader. The said enterprise will be operated by the
senior students on the last year of their academic program and/or the alumni. Each fourth
year student managing the project in each cycle shall have a third year student
counterpart. This immersion scheme will prepare the third year students for the next year
activity. The Fourth year students will do growing of seaweed, regular project
monitoring, recording, perform post production practices for seaweed, harvesting,
processing and marketing of the foliar fertilizer. Production facility and initial capital
investment will be provided by the institution. There will be 4 production cycles (2 cycles
per semester) during the whole duration of the project with an initial capital investment of
Php 640,643.00.

A total of 40 senior students and alumni will be grouped into four having 10
members per group. Each group of 10 members shall form part the team to manage each
cycle. Students will select from among them a leader who will stand as Enterprise
Manager. They will be supervised by a faculty as the Project Coordinator.

Marketing of the product will be done in collaboration with farmers’ cooperative

in the different localities within the province. Continuous promotion of the product will
be done through attendance to trade fairs. Conduct of field demonstration and harvest
festivals, and technology forum on the utilization of seaweed foliar fertilizer which will
involve LGUs, NGOs and farmers will also be done as initial step to product promotion.

IV – GOALS AND OBJECTIVES

SPAMAST being one among the SUC preparing students to become entrepreneurs
has the expertise to undergo the proposed project that will enhance student’s technical
know-how. Thus, the proposed project includes the following objectives:

1. The proposed project on the production of seaweed (Kappaphycus

alvarezii) foliar fertilizer, target the junior and senior students and alumni
to engage in the said enterprise to showcase technology for livelihood, self
employment and income generation. They will be trained to acquire the
technical know-how of the enterprise.

2. The production of seaweed foliar fertilizer would somehow open another

avenue to the existing livelihood activity in the coastal area as another
potential income earner directly benefiting the junior and graduating
students and the alumni.

3. The student’s and alumni’s participation in the production of seaweed

foliar fertilizer will further encourage possible linkage to local industries
example the rice, ornamental nurseries, banana and mango industries for
further product exposure.

V – DESCRIPTION OF S and T BUSINESS VENTURE

A. Business Description

1. Products
 The foliar fertilizer utilizes Kappaphycus alvarezii is one of the highly
cultured seaweed in Davao del Sur with a high commercial value widely in the
market at present. Drippings coming from said species of seaweed will be used as
a raw material in the proposed project. Collected during the drying period this
material is left to drip into the ground and washed back into the sea during high
tide. In fact, drippings are considered as waste materials produced during drying
of harvested seaweeds which has been thought of as an ordinary waste product.
Verification studies show that Kappaphycus drippings contained nutrient contents,
an active component of foliar fertilizer. Since the product is organic, it is
definitely environment-friendly and therefore safe to use.

2. Production of Raw Material

Production of Kappaphycus alvarezii var. tambalang is the most favorable

seaweed cultivated in Davao del Sur. Generally, the crop is cultivated in an open
sea requiring protection from strong current, wind and areas with no heavy
freshwater runoff and good water movement. The water level must not be less
than 0.5 meter at low tide and more than 2.5 meter at high tide, its ground should
be firm and stable to permit easy establishment using the floating monoline
method. The substrata and water conditions should be in accordance with the
preference of the Kappaphycus species to be farmed.

Production of Foliar Fertilizer

Matured seaweed (45 days old) shall be the age preferred for the source of
the potent liquid material. Processing will start initially by cleaning of the newly
harvested material, extraneous materials, infected parts and clinging epiphytes
must be removed then washed with sea water. Excess seawater should be drained
before placing them in plastic containers at 25 kilos per container, sealed and kept
in an open area. Gathered liquid shall be placed in storage containers and/or
recommended bottle sizes, sealed and stored and/or deliver to buyers.

2. Socio-economics and management

Many farmers nowadays would want to utilize organic fertilizers but due
to the voluminous requirement in the production of the dried organic fertilizer
seaweed-based foliar fertilizers are again in demand in the local market and have
been increasing due to high cost of synthetic commercial fertilizers also.
3. S and T Content

Prior to the conduct of the study, the drippings collected from the seaweed
at drying time was subjected to nutrient analysis at the Regional Soils Laboratory
– Department of Agriculture Region XI. Result of the analysis :
4.1 Nutrient Content

Nitrogen – 0.14%, Phosphorus – 1.14%, Potassium – 3.25%, Calcium –

0.041%, Magnesium – 0.018%, Cu – 112.50ppm, Zinc – 50 ppm, Iron – trace and
Manganese – trace.

4.2 Quality Control

Containers. PEP bottles at 4 liter, 1 liter and 500ml capacity are used.
Plastic bottles are cleaned thoroughly with soap and tap water and allowed to dry
before filling-up. After containers have been filled-up with the drippings, closed
tightly then kept in a cool, clean and dry place.

4.2 Field Testing Trials on the Potency of the Foliar Fertilizer

Several studies were conducted to test the potency of the foliar

fertilizer coming from Kappaphycus alvarezii drippings. Results of the studies
conducted were:

A. ORNAMENTALS, MANGO AND RICE STUDIES

Growth of plants in terms of height and diameter (Oncidium,

chrysanthemum, dendrobium, mango seedlings and rice seedlings)

The 25% kappaphycus drippings showed comparable effect with 0 %

treatment on Oncidium and dendrobium orchids. However, on mango seedlings,
rice seedlings and chrysanthemum, it significantly produced the tallest plants with
the widest diameter also for mango. The shortest plants were registered in
kappaphycus concentrations >50% which on the other hand, were comparable
with 0%. Higher concentrations of kappaphycus drippings constantly produced
shorter plants. These results implied that higher concentrations of kappaphycus
drippings retarded the growth of some younger plants with succulent stems
(oncidium and tissue culture dendrobium orchids). This is in consonance with
the findings of Eswaran, et al., 2004 that growth of plants was retarded when the
concentration of Eucheuma sap solution was >50% whereas the growth was
enhanced when the concentrations was 5-25%.

Response of other agronomic characteristics (Oncidium, chrysanthemum,

dendrobium, mango seedlings and rice seedlings)

Significantly, most leaves of dendrobium are developed from no treatment

plants while the least number was registered in those sprayed with kappaphycus
drippings. The earliest mango seedlings to bore new flashes were those sprayed
with 25%, 50% and 75% kappaphycus drippings and were significantly different
from 0 % and 100% kappaphycus concentration which had the longest days to
flash emergence.

Consistently, kappaphycus concentration of 25% significantly produced

the most number of buds and the shortest number of days from bud formation to
flowering for chrysanthemum. The least number of buds and the longest days
from bud formation to flowering were registered from those applied with 50% and
above phycoccolloid concentrations.

The extent of germination was 100% from the seeds soaked in 50% and
25% drippings whereas, 93.33% and 9.67% for seed soaked in 75% drippings and
tap water, respectively. The least germination was observed in 100% drippings
(63%).

No significant effects were noted in terms of number of sucker per plant

and number of days to sucker emergence for oncidium orchids.

Number of leaves, average leaf area index, and yield (grams) with and
without roots of pechay

Results showed that as the rate of extract increases there is an increase in

the number of leaves, the leaf area, and the yield in grams (with and without
roots) of pechay. It further showed that there is a positive relationship between
the increase in the rate of extract to the increase in the number of leaves, the leaf
area index, and the yield in grams (with and without roots) of pechay.

B. RICE STUDIES

Tiller Production at 30 and 60 days

Maximum tiller development was observed in direct seeded rice at 30 DAS while
in transplanted rice was in 60 DAT. All plots sprayed with kappaphycus drippings
(farmer’s practice, 20 ml, 20 ml + 90-30-30 and 10 ml + 45-15-15) did not show
significant difference with the rice applied with the recommended commercial
fertilizer but significantly different with the control (no application).

The least number of tillers were observed from plots with no fertilizer applied at
4.25 tillers/hill (direct seeded at 30 DAS) and 4.33 tillers/hill (transplanted at 60
DAT).

Results further showed that maximum tiller production occur at 30 days

after sowing for direct seeded rice while

Growth in Terms of Height

 Comparable results in growth was observed from rice plants applied with
kappaphycus drippings foliar fertilizer and commercial synthetic fertilizer at the
rate of 90kg N-30kg P-30kg K per hectare. Rice plants without fertilizer
consistently produced the shortest plants from transplanted and direct seeded rice.
Significant fast growth in transplanted rice was observed from 15, 30 to 45
DAT. Fast growth was observed in all plots applied with fertilizer while in direct
seeded rice, significant increase in growth was observed at 45 DAS. Consistently,
plants with no fertilizer produced the shortest plants.
The results implied that kappaphycus drippings has the potential to
enhance growth of rice plants similarly with the commercial fertilizer.

Number of Productive Tillers

Rice plants applied with 10 ml kappaphycus Drippings + 45kg N-15kg P-

15kg K produced the most number of tillers hill for transplanted rice with a mean
number of 9.08/hill while for direct seeded rice, while all fertilized plants
significantly produced the most number of tillers compared with control in direct
seeded rice.
The results implied that kappaphycus drippings have the potential to
enhance tiller production in direct seeded rice compared with the recommended
commercial fertilizer. For transplanted rice on the other hand, 10 ml kappaphycus
drippings in combination with 45-15-15 commercial fertilizer showed the
potential fertilizer combination to enhance tillering in transplanted rice.
The lowest was noted in plots with no fertilizer with 5.17 pieces.

Yield (tons/ha)

Overall results from the fresh and dry yield of rice fertilized with
kappaphycus drippings showed significant difference among treatments. All
fertilized plots either with single application of kappaphycus drippings or in
combination with the recommended rate of commercial fertilizer did not show
significant difference in plots applied with the recommended commercial
fertilizer. The highest fresh yield was between 4.88 tons/ha and 4.22 tons/ha for
transplanted rice while 4.91 tons/ha to 4.22 tons/ha for direct seeded rice. For dry
yield, the highest yield was 3.88 tons/ha to 3.56tons/ha for transplanted rice and
3.86 tons/ha to 3.54 tons/ha for direct seeded rice.

The results implied that the application of kappaphycus drippings have the
capacity to equate the effect of the recommended commercial fertilizer in terms of
yield of rice either transplanted of direct seeded. Although the result is way
behind the optimum yield for PSBRc72H rice, low yield attained can be attributed
to pest damage since no pesticides were applied during the conduct of the study.
C. MUNGBEAN

Number of nodules per plant

The most number of nodules per plant was observed from fertilized plots
with kappaphycus drippings at the rate of 15 ml per liter of water at 289.67 pieces
per plant, followed by plants sprayed 20 ml kappaphycus drippings per liter of
water 252.67 pieces, T2 with 237.67 pieces, T4 with 196 pieces, and T6 and T5
with 109.33 pieces.

Number of pods per plant

Significant number of pods per plant was taken from 30kg N-30kg P- 30
kg K, 20 ml kappaphycus drippings, 30kg N-30kg P- 30 kg K + 20 ml
kappaphycus drippings, and 10 ml kappaphycus drippings + 30-30-30 kg/ha with
42.70, 40.07, 38.37, and 37.90 pods per plant. The lowest was registered in 15kg
N-15kg P- 15 kg K+ 20 ml kappaphycus drippings and without treatment with
36.60 and 34.70 pods per plant.

Yield

Plots applied with 30kg N-30kg P- 30 kg K, 20 ml kappaphycus drippings,

and 30kg N-30kg P- 30 kg K + 20 ml kappaphycus drippings gave the highest
fresh yield at 4, 3.33, and 3 tons per hectare.

B. MARKETING PLAN

1. Pricing

At present there are commercial seaweed-based foliar fertilizers but they

utilized different material from seaweed. There are no data showing
commercialization of foliar fertilizer coming from seaweed wastes. The proposed
project will pilot the commercialization of the product. Pricing of the foliar
fertilizer will be based on the prevailing price of foliar fertilizer coming from
other sources that are commercially available in the market. A Php 50.00 per liter
(based on the present prices) will be the farm gate price that will be adopted in the
project.

2. Promotion

The institution through the students involved in the project will adopt pilot
areas to continue conduct of pilot test on the effect of the product on plants,
specifically high valued vegetables, fruit trees and rice and corn. Conduct of
demonstration farms showcasing the use of the foliar fertilizer shall be established
in strategic locations where there is easy access on the part of the farmers
especially during the conduct of harvest festival. Attendance to trade fairs and
conduct of technology forum will also be done.

3. Distribution

Foliar fertilizer that will be produced from the project will made available
in selected retail outlets. It will be packaged at 4-liter, 1-liter, and 500 ml per
containers. Channel of distribution will be done through farmers’ cooperatives in
the province. A Memorandum of Agreement (MOA) will be signed between the
cooperatives and the institution.

C. OPERATIONAL PLAN

A contractual laborer will be hired in the proposed project to provide

assistance to the 40 graduating students who will be directly involved in the
production of seaweed foliar fertilizer. The students will be trained prior to the
onset of the project. During the entire duration, laborers will be involved in the
seaweed farming, post harvesting, drying and collection of drippings.

There will be 4 cycles in the proposed project. Each cycle will involve the
5 major activities: farming, harvesting, drying, collection, and packing.

The proposed project will implement a profit sharing scheme of 80:20

(from the net income) in favor of the students involved in the management of the
project. The 10% will be given back to the school to accrue the fixed asset and
other facilities of the school. The 80% will be allotted for the members of the
group directly involved in the proposed project. The remaining 10% will be for
the adviser or project leader incentive.

The Project Coordinator will directly supervise and manage the

entrepreneurial activities.

PRODUCTION SCHEDULE
 ACTIVITIES 1 2 3 4 5 6 7 8 9 10 11 12
1. Project x
management
orientation and
action plan
preparation
2. Organization and x
assignment of
duties and
responsibilities
3. Trainings x
4. Farm/Site x x x x x x x x x x x
Preparation
5. Selection of x x x x x x x x x x x
Seedlings/
Cultivars
Preparation
6. Planting x x x x x x x x x x x
7. Monitoring and x x x x x x x x x x x
Farm Maintenance
8. Harvesting x x x x x x x x x x x
9. Drying and x x x x x x x x x x x
Collection of
Drippings
10.Packaging/ x x x x x x x x x x x
Labeling
11. Marketing x x x x x x x x x x x
12. Report Writing x x x x x x x x x x x

D. MANAGEMENT/ORGANIZATION PLAN

D.1 Organizational Structure

RDE DIRECTOR
 Administrative Support
Staff

Business Mentor/Project
Leader

Student Enterprise Manager

Student Purchasing Student Sales and Student Production Student Promotion

and Collection In- Marketing In-charge In-charge and Record In-
charge charge

Contractual Laborers

The 40 graduating students involved in the proposed income generating

project will be divided into 4 groups having 10 members in each group and shall
be distributed to every production cycle schedule . Each member of the group will
be given specific tasks in the production and marketing of the product. Such tasks
are enterprise manager, production in-charge, promotion/record in-charge,
purchasing/collection in-charge and sales/marketing in-charge. Students will be
directly supervised by a faculty acting as the Project Coordinator.

The institution’s director for Research and Administrative Support Staff

will be part of the committee who will oversee in the evaluation of the different
activities of the students involved in the project as supervised by the faculty
business mentor/project coordinator. Contractual laborers will be hired as the need
arises to assist the students in carrying out the different field activities.

D.2 Fund Management and Student Incentive Scheme

Fund management will strictly be followed subject to the existing standard

accounting and auditing procedures, rules and regulations required by the
Accounting Department of the institution and of the Commission on Audit.

The proposed project’s financial activities and disbursements shall be

based on the existing rules and regulations governing special trust fund of the
institution and petty cash procedures of the IGP Unit of the institution. Securing
of petty cash intended for the project on its day to day operation, will be subjected
to existing accounting and auditing procedures of the Philippine government.
Other monetary transactions which include capitalization and disbursement of
incentives to students involve in the project will likewise be subjected to the latter
mentioned procedures.

D.3 Institutional Plan

The proposed production of seaweed foliar fertilizer enterprise will

accommodate purchase orders not only from clients within adjacent towns of
Davao del Sur, but from prospective clients within the region. The graduating
students will be given utmost priority to involve themselves in the proposed
project.

The production of seaweed foliar fertilizer will utilize as student-managed

enterprise showcase of the Research and Extension Division of the institution.
Further activities related to the project will become an institution’s S and T in
seaweed management and enterprise development. Students who will be involved
in the project will be trained as to completely acquire expertise in the said project
and is therefore expected to engage in the same or similar enterprise after
graduation. This project will not only encourage the students involve; hence this
would somehow encourage micro-entrepreneurship of coastal inhabitants
especially those involved in the seaweed production.

D.4 Participation of Target Clients

Target clients are expected to patronize the said product of the proposed
project, the seaweed foliar fertilizer. Thus, they will be convinced that aside from
being economical to use it is also environment-friendly product. Target clients are
also expected to serve as agents for other prospective clients.
 D.5 Monitoring and Evaluation Plan

The project coordinator will ensure the successful operation of the

proposed project. Regular inspection and monitoring of the project will strictly be
implemented. Status report of the project will be secured from the Student
Enterprise Manager on a weekly basis.

The student leaders as the in-charge of the various functions will be

required to submit monthly report to the Project Coordinator copy furnished the
IGP Coordinator of the institution and the President of the Institution. Financial
reports will also be submitted to the accounting division of the institution.

D.6 Agency Counterpart

SPAMAST shall have a counterpart fund of Php29,700.00 (17.50%) of

the total project cost for the personnel services of the proposed project.

E. FINANCIAL PLAN

E.1 Major Assumptions

E.1.1 Technical Assumptions

Wet Weight of Raw Material/production cycle 3000 kgs
Net Potent Moisture Content after drying/production cycle 1,800 liters
No. of Production Cycle /year 4 cycles
Prevailing Price of Foliar Fertilizer/liter Php 50.00/liter
Total Yield of Moisture Content/year 7,200 liters

E1.2 Financial Assumptions

Production Cost (Foliar Fertilizer)
Supplies and Materials Quantity Unit Cost Total Cost
1. Empty Bottles*
Gal (4 li capacity) 400 pcs 50.00 20,000.00
1 li 4000 pcs 10.00 40,000.00
500 ml 3000 pcs 8.00 24,000.00
2. Seal* 1,900 pcs 955.00
3. Drums/Storage containers 10 pcs 2000.00 20,000.00
4. Label* 1,900 pcs 2.50 4,750.00
5. Cellophane** 240 pcs 20.00 4,800.00
6. Bamboo Basket 70 pc 150.00 10,500.00
7. Weighing Scale 1 pc 10,000.00 10,000.00
8. Fine Mesh Net (Pamo) 100 m 40.00 4,000.00
9. Tarpaulin 20 m 60.00 2,400.00
10. Fresh seaweed 3000 kgs 15.00 45,000.00
11. Tie back* 1 kg 100.00 100.00
Direct Labor 27,000.00
Utilities 7,000.00
Communication 3,000.00
Depreciation 2,000.00
Transportation 12,000.00
Management Cost 169,632.00
Patenting 40,000.00
Training 40,000.00
Seaweed Farm development 53,000.00
Installation of fabricated draining facility 20,000.00
Installation of dripping collection 60,000.00
platform, processing and storage area
Rental 10,000.00
Miscellaneous 20,506.00
Total Php 640,643.00
*needed per production cycle
** can be recycled
Production Cost (Seaweed Raw Material Production) (0.25 ha)

Particulars Unit Qty Price/Unit Total Cost

Materials
1. Stakes Pcs 300 80.00 2,400.00
2. Nylon monofilament Kg 7 95.00 665.00
3. Plastic Straw or tie-tie Rolls 10 45.00 450.00
4. Planting materials kg 1200 10.00 12,000.00
5. Bolo Pc 2 150.00 300.00
6. Knife Pc 3 75.00 225.00
7. Sledge hammer Pc 2 150.00 300.00
8. Large net bags pc 2 150.00 300.00
 9. Wooden banca Unit 1 30,360.00
10. Iron bar with sharp Pc 1 250.00 250.00
end
11. seed bin unit 1 350.00 350.00
Miscellaneous Expense 5,300.00

TOTAL 53,000.00

E.2 PROJECTED INCOME STATEMENT

Projected 5-Year Income Statement of Proposed Seaweed Foliar Fertilizer for SPAMAST
YEAR
SPECIFICS
1 2 3 4 5
Revenues
Revenue/Income Beginning (243,143.00) (179,480.00) (86,730.55) 49,078.72
7,200 liter x Php 50.00/li 360,000.00 396,000.00 435,600.00 479,160.00 527,076.00
750 kg dried seaweed x 50/kg 37,500.00 41,250.00 45,375.00 49,912.50 54,903.75
Gross Sales 397,500.00 194,107.00 301,495.00 442,341.95 631,058.47

Less : Production Expenses

Materials
1. Empty Bottles*
Gal (4 li capacity) 20,000.00 21,000.00 22,050.00 23,152.50 24,310.13
1 li 40,000.00 42,000.00 44,100.00 46,305.00 48,620.25
500 ml 24,000.00 25,200.00 26,460.00 27,783.00 29,172.15
2. Seal* 955.00 1,002.75 1,052.89 1,105.53 1,160.81
3. Drum/Storage containers 20,000.00 ---------- ---------- --------- -----------
4. Label* 4,750.00 4,987.50 5,236.88 5,498.72 5,773.66
5. Cellophane* 4,800.00 ----------- 5,040.00 -------------- 5,292.00
6. Bamboo Basket 5,500.00 --------- ---------- ------------ ----------
7. Weighing Scale 10,000.00 ---------- ----------- ----------- -----------
8. Fine Mesh Net (Pamo) 4,000.00
----------- ---------- ------------ ------------
9. Tarpaulin 2,400.00
------------ ------------- ----------- -------------
10.Fresh Seaweeds* 40,000.00 46,200.00 48,510.00 50,935.50 53,482.28
11. Tie back* 100.00 115.50 121.28 127.34 133.71
Direct Labor 27,000.00 28,350.00 29,767.50 31,255.88 32,818.67
Utilities 7,000.00 7,350.00 7,717.50 8,103.38 8,508.54
Communication 3,000.00 3,150.00 3,307.50 3,472.88 3,646.52
Depreciation 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Transportation 12,000.00 12,600.00 13,230.00 13,891.50 14,586.08
Management Cost 169,632.00 169,632.00 169,632.00 169,632.00 169,632.00
Patenting 40,000.00 ----------- ------------- ------------ --------
Training 40,000.00 ----------- -------------- -------------- -------------
Seaweed Farm development 53,000.00 ----------- ----------- ------------ ---------
Fabricated draining facility 20,000.00 ------------ ----------- ------------- -------------
I dripping collection platform, 60,000.00
processing and storage area --------- ----------- --------- ---------
Rental 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Miscellaneous 20,506.00 ---------- ------------- ----------- --------------
TOTAL EXPENSES 640,643.00 373,587.75 388,225.55 393,263.23 409,136.80
NET INCOME/LOSS (243,143.00) (179,480.00) (86,730.55) 49,078.72 221,921.67

E.3 Projected Cost

The total project cost for the proposed production of seaweed foliar
fertilizer is Php 640,643.00 for 4 production cycles in twelve months. The Php
338,011.00 will be used for the Maintenance and Other Operating Expenses
(MOOE), Php 169,632.00 is allotted for the Personal Services for twelve months
operation of the project and Php 133,000.00 for the capital outlay.

The proposed production of seaweed foliar fertilizer is projected to

produce 1,800 liters per production cycle having a total net production yield of
7,200 liters during the whole duration of the project. The prevailing price of foliar
fertilizer per liter is Php 50.00 having a projected gross income of Php
360,000.00.

E.4 Proposed Line – Item Budget

PARTICULARS TOTAL SPAMAST DOST-GIA

I. PERSONAL SERVICES
Direct Cost
Salaries and Wages
1 Caretaker P7,946/mo x 12 mos 95,352.00 95,352.00
Honoraria
1 Project Leader P4950/mo x 12 mos 59,400.00 29,700.00 29,700.00
1 Project Staff L1 P1,240/mo x 12 mos. 14,880.00 14,880.00
Total for PS 169,632.00 29,700.00 139,932.00
II. MAINTENANCE & OTHER
OPERATING EXPENSES
Direct Cost
 Travel and transportation expenses 12,000.00 12,000.00
Supplies and materials 176,505.00 176,505.00
Communication 3,000.00 3,000.00
Utilities 7,000.00 7,,000.00
Contract Labor 27,000.00 27,000.00
Patenting 40,000.00 40,000.00
Depreciation 2,000.00 2,000.00
Training 40,000.00 40,000.00
Rental 10,000.00 10,000.00
Miscellaneous 20,506.00 20,506.00
Total for MOE 338,011.00 338,011.00
III EQUIPMENT OUTLAY
Seaweed Demo Farm development 53,000.00 53,000.00
Fabricated draining facility 20,000.00 20,000.00
Installation of dripping collection platform 60,000.00 60,000.00
with processing and storage area
Total for Equipment Outlay 133,000.00 133,000.00
GRAND TOTAL 640,643.00 29,700.00 610,403.00

E.5 PROJECTED INCOME AND CASHFLOW STATEMENT

Projected 5-Year Cash Flow Statement of Proposed Seaweed Foliar Fertilizer for
SPAMAST

YEAR
ITEM
0 1 2 3 4 5
Inflows
Cash Beginning - 640,643.00 569,132.00 483,601.95 486,438.03 620,480.11
Proceeds from 640,643.00 - - - - -
Loan
Collection from ----- 397,500.00 194,107.00 301,495.00 442,341.95 631,058.47
Sales
Total Cash 1,038,143.00 763,239.00 785,096.95 928,779.98 1,251,538.58
Inflows
Outflows
Empty Gallons
Gal (4 li
capacity) 20,000.00 21,000.00 22,050.00 23,152.50 24,310.13
Empty bottles 40,000.00
(1 lit) 42,000.00 44,100.00 46,305.00 48,620.25
Empty bottles
(500 ml) 24,000.00 25,200.00 26,460.00 27,783.00 29,172.15
Seal* 955.00 1,002.75 1,052.89 1,105.53 1,160.81
Drum/Storage 20,000.00 ---------- ---------- --------- -----------
containers
Label* 4,750.00 4,987.50 5,236.88 5,498.72 5,773.66
Cellophane* 4,800.00 ----------- 5,040.00 -------------- 5,292.00
Bamboo Basket 5,500.00 --------- ---------- ------------ ----------
Weighing Scale 10,000.00 ---------- ----------- ----------- -----------
Fine Mesh Net 4,000.0
(Pamo) 0 ----------- ---------- ------------ ------------
Tarpaulin 2,400.00
------------ ------------- ----------- -------------
Fresh
Seaweeds* 40,000.00 46,200.00 48,510.00 50,935.50 53,482.28
Tie back* 100.00 115.50 121.28 127.34 133.71
Direct Labor 27,000.00 28,350.00 29,767.50 31,255.88 32,818.67
Utilities 7,000.00 7,350.00 7,717.50 8,103.38 8,508.54
Communication 3,000.00 3,150.00 3,307.50 3,472.88 3,646.52
Transportation 12,000.00 12,600.00 13,230.00 13,891.50 14,586.08
Management
Cost 169,632.00 169,632.00 169,632.00 169,632.00 169,632.00
Patenting 40,000.00 ----------- ------------- ------------ --------
Training 40,000.00 ----------- -------------- -------------- -------------
Seaweed Farm 53,000.00
development ----------- ----------- ------------ ---------
Fabricated 20,000.00
draining facility ------------ ----------- ------------- -------------
I dripping 60,000.00
collection
platform,
processing and
storage area --------- ----------- --------- ---------
Rental 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Miscellaneous 20,506.00 ---------- ------------- ----------- --------------
Total Cash -
Outflow 469,011.00 279637.05 298,658.92 308,299.87 314,420.78
Cash Balance, 640,643.00 569,132.00 483,601.95 486,438.03 620,480.11 937,117.80
End

Profitability Indicators/Ratios for SPAMAST

The proposed project on the production of seaweed foliar fertilizer is

economically and financially viable income generating project (IGP) based on the
positive results of the following indicators given below:

Financial Profitability Measures Computed Values

1. Average Annual Return on Investment -0.75
2. Average Annual Net Income (4,789.84)
3. Undiscounted Payback Period 2.11
PROJECT INVESTMENT COST 640,643.00

Financial Viability Measures Computed Values

1. Internal Rate of Return 30%
2. Net Present Value at 10% 865,765.09
3. Discounted Payback Period 1.62

VI – OVERALL ACTIVITY/WORKPLAN

QUARTER
ACTIVITY
1 2 3 4
1. Acceptance of junior and senior students x
and/or alumni for involvement in the IGP –
Production of Seaweed Foliar Fertilizer
2. Training of project leader and students. x
Lectures and hands-on training will be done.
3. Purchase of supplies and materials x x x x
4. Construction and development of x x x x
demonstration farms of raw materials
 5. Monitoring of raw materials for seaweed foliar x x x x
fertilizer production.
6. Construction of support facilities. x
7. Production of foliar fertilizer. x x x x
8. Marketing of the product. x x x x
9. Project evaluation. x x x x
10. Post-training evaluation of student trainees. x x x x
11. Evaluation and grading of student trainees x x x x
performance.
12. Submission of project report. x x x x

VII – LOGICAL FRAMEWORK

SPAMAST INCOME GENERATING PROJECT (IGP) LOGICAL FRAMEWORK

Production of Seaweed Foliar Fertilizer

OBJECTIVELY
NARRATIVE TIME- MEANS OF ASSUMPTION
VERIFIABLE
SUMMARY LINE VERIFICATION
INDICATORS
GOAL:
Increase employment  Increased number June 2009- Tracer studies Graduates are
percentage of SPAMAST of enrollees by 50 November still in constant
graduates  Increased number 2009 communication
 of employed Case studies on with the
graduates by 25 successful institution and
 Increased number graduates their co-
of entrepreneurs graduates for
by 25 future linkages
PURPOSE:
1. To enhance technical Increase number of November Conduct follow – Graduates adopt
and entrepreneurial students involved in 2008 – ups and surveys the technical
know-how of the enterprise December know – how
graduating students designed for them; 2009 learned from the
and graduates as involvement of institution
well, through hands students in managing during their
on application of their own enterprise senior year’s in
business management in school school by
skills by establishing establishing
profit-oriented their own home
ventures as a source – based
of future livelihood enterprise
2. To showcase the
student’s capability in
managing Conduct follow – Eagerness of
economically and At least 20 of November ups and surveys; students to put
financially viable graduates per year 2008 – monitored their own initial
enterprise engaged in the December graduates engaged capital to take
production of 2009 in the production off on their own
seaweed and seaweed of seaweed and home – based
foliar fertilizer as seaweed foliar enterprise
learned from their fertilizer
involvement in the
institution’s IGP
OBJECTIVELY
NARRATIVE SUMMARY TIME- MEANS OF ASSUMPTION
VERIFIABLE LINE VERIFICATION
INDICATORS
EXPECTED OUTPUTS:
1. Graduates are At least 20 of After the Increase number Availability of
completely enhanced graduates per year training of graduates initial capital
and trained with the engaged in the engaged in the intended for the
necessary production of production of enterprise,
entrepreneurial skills seaweed and seaweed and access to
a potential seaweed foliar seaweed foliar prospective
livelihood / income fertilizer as learned fertilizer after buyers of the
generating from their graduation product
opportunities involvement in the
institution’s IGP
 2. Faculties are more Training Willingness of
competitive in 10 of faculty After the Certificates/ faculty to be
teaching /mentoring members per training Increase number trained and
income generating / semester are trained of faculty extend
business enterprise in managing of involvement as mentoring
business/ income student – mentors services to
generating enterprise students willing
to undergo
enterprise
training
Number of
students
3. Establishment of Students
successfully
home-based Involvement of senior successfully
November completed the IGP
production of students in direct implemented the
2008 – enterprise of the
seaweed foliar management of the IGP as reflected
December school and able to
fertilizer and enterprise by a positive
2009 return their initial
marketing as a pilot profitability
capital
enterprise indicators upon
evaluation after
the training

OBJECTIVELY
NARRATIVE SUMMARY TIME- MEANS OF ASSUMPTION
VERIFIABLE LINE VERIFICATION
INDICATORS

ACTIVITIES:

Area acquisition; November MOA

1. Acquisition of area
for the demonstration supplies and materials 2008
farm; purchasing of delivered; Orientation
supplies and of student trainees on
materials needed for the technological and
the demonstration managerial flow of
farm; training, the proposed project;
orientation and student trainees
organization of organized
students who will be
 involve in the
enterprise on the
production of
seaweed foliar
fertilizer
Ready to seed plants
2. Planting of seaweeds
November
in the demonstration
2008 – Seed plant
farm where the Healthy seed
December survives until
needed raw material plants
2008 the end of the
for the production of
seaweed foliar culture cycle
fertilizer will be
secured
Growth of plants
3. Daily monitoring of
the raw material November
2008 – Plant growth
December
Students doing the 2008
4. Harvesting of raw actual operation of Students
material and the enterprise successfully
processing of completed and
seaweed foliar November Certificate of
implemented the
fertilizer 2008 – completion per
IGP;
September production cycle
2009 with a
corresponding
evaluation issued
to the student
Students doing the trainees
actual operation of
5. Packaging and the enterprise returned the
marketing of the November initial capital
product 2008 – Certificate of
Training and net profit
September realized from
2009 Completed given
to the student the operation
trainees on the
production of
seaweed foliar
fertilizer.