Republic of the Philippines
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Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
COFFEE PRODUCTION: A SUSTAINABLE LIVELIHOOD PROGRAM IN
BARANGAY MINULI, CARRANGLAN NUEVA ECIJA
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Abstract
Coffee is one of the most consumed beverages and the
demand for coffee is significantly increasing due to the
surge of demand from the consumers and some coffee shop
owners. The study focuses on the viability of Coffee
production in Carranglan Nueva and develop a sustainable
livelihood project that will help the people living below
the low-income bracket and can help to alleviate the
unemployment problems in the area where the business will
be situated.
In the conduct of preparing this study, the
researcher used the descriptive method of research. With
the research method used, the researcher was able to
identify and study the potential market, the competitors
and be able to determine the operational and financial
concerns of the proposed business. The study was
conducted in Carranglan and some barangays in San Jose
City. The respondents of the study were the household
owners who were randomly selected and coffee shops owners
that was identified by the proponents. To ensure the
viability of the proposed business venture, tools in
financial analysis were maximized by the proponents.
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Through the conduct of this study, the establishment
of coffee production in the said municipality is feasible
and can be a great help to the community in terms of job
opportunities and a growth of coffee farming industry in
the said barangay has a potential.
The proposed business venture is a new concept in the
municipality and profitable and viable for implementation.
It will result in a higher return to the owner. The project
is socially and economically desirable and will provide
benefits to the government in the form of taxes.
Venturing
in coffee production can develop new skills to the farmers
of Carranglan wherein an opportunity to learn in coffee
plantations
can
be
established
through
seminars for the members of the cooperative.
training
and
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CHAPTER I
THE PROBLEM AND REVIEW OF RELATED LITERATURE AND STUDIES
I.
Introduction
Most Filipino love to eat, family gathers on every
different occasion and food will serve as a bind to keep
the family members together. Aside from luscious foods that
serve, a meal will never be complete without a beverage on
the table. Apart from water, coffee is one of the most
consumed beverages in our country nowadays.
People consume coffee due to different reasons. For
many people, coffee is the first beverage consumed in the
morning and is relied upon for energy to help them through
the day. For some, the smell and taste of coffee brings
comfort, and for others having a cup of their favorite
coffee can help them feel relaxed and more productive.
(Insider, 2019)
It is believed that coffee was first introduced to the
Philippines in 1740 when Franciscan Friars brought the
first coffee tree to the country. Coffee growing
spread through the Batangas and Lipa became the coffee
capital of the Philippines. Moreover, the Philippines is
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considered the second-largest consumer of coffee in Asia.
According to a study in 2021, an individual consumed 3.05
kilo of coffee and in 2025 Filipinos are expected to consume
3.78 kilo per person. (MacDonnell, 2022)
The Philippines was able to produce four varieties of
coffee namely Arabica, Robusta, Liberica (Philippine Liberica
is
called
Kapeng
Barako)
and
Excelsa.
According
to
the
Philippine Statistics Authority, for the first quarter of
2023, the production of coffee (green coffee beans) was
estimated at 9.42 thousand metric tons. It inched up by 1.3
percent from its same quarter of 2022 output of 9.30
thousand metric tons.
For others, the benefit of drinking coffee is to stay
awake for an extended period of time, but consumption of
coffee can also provide different health benefits. Coffee
contains caffeine, a stimulant that activates the central
nervous system. It also contains antioxidants that are
essential for it to prevent or delay some types of damage
in cells. Coffee also believes that it reduces the risk of
type 2 diabetes and lower rates of other diseases. (Sass,
2020)
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With the above-mentioned benefits and high consumption
of coffee in the country, the demand for coffee beans has
become high but the production of coffee is significantly
decreasing
over
the
past
few
years
which
result
from
importing coffee beans in the neighboring countries like
Vietnam.
Currently, a number of coffee shops were established
in Carranglan Nueva Ecija and other neighboring towns and
cities. The demand for coffee beans was increasing and most
of the coffee shops procure their needs in Cordillera
Administrative Region and in Southern Tagalog.
Sustainable livelihood projects for coffee production
can
help
aid
in
the
demand
of
coffee
in
different
localities. Furthermore, it also creates job opportunities
for
the
locals
where
the
production
will
take
place.
Setting up a coffee production as livelihood program in
Barangay Minuli, Carranglan Nueva Ecija will be able to
help people living below the low-income bracket and can
help to alleviate the unemployment problems in the area
where the business will be situated.
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II.
Statement of the Problem
The feasibility study aimed to look at the viability
of establishing the Coffee Production in Carranglan Nueva
Ecija.
The study aims to answer to answer the following:
1. What form of business organization suits this kind of
business?
2. How much capital is needed in starting up this kind
of business venture?
3. What are the equipments needed in operating this
business?
4. What possible problems may be encountered in operation
of the proposed business?
5. What is the possible solution to these problems?
6. What is the impact of the business on the people and
society?
III. Scope and Delimitation
The
study
will
be
conducted
in
Barangay
Minuli,
Carranglan Nueva Ecija wherein the place has favorable
climate that greatly an advantage in the production of
coffee.
The
study
also
includes
the
production
and
distribution of coffee in its potential market. The study
also tackles the effective
marketing
strategies that
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surely will be a great leap in the operation of the proposed
business venture. Also, this study was confined to the
possible problems that the business may encounter while
operating
the
business
and
the
possible
solutions
to
address the problems.
IV. Significance of the Study
The study may be used as a guide to those who are
interested
in
venturing
in
this
kind
of
industry
and
provide a sustainable livelihood program to the locality.
The Municipality - It will help the municipality to provide
jobs for the marginalized sector through local livelihood
projects.
The Business Owners - the production of coffee beans in the
Municipality of Carranglan will be able to provide them
their needed coffee bean supplies and will be able for them
to lessen their production cost.
The Farmers - with the continuous surge in price of other
agricultural supplies in rice and vegetable farming, coffee
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farming can be an alternative crop that the farmers can
cultivate in the long run.
The Residents - to those who are unemployed due to the
aftermath
of
the
pandemic,
the
establishment
of
a
cooperative can help provide employment in the community.
The Government - This project can raise revenues in the
form of taxes. It can also create employment.
The Future Researchers - The result may be used as reference
data; it will serve as the guide to future researchers to
improve this study or to create new study out of this
research. This study may also help future researchers in
improving the way of producing this kind of product.
V. Review of Related Literature
Coffee - Its Origin
The history of coffee consumption begins in Ethiopia,
where the local people have been drinking coffee for many
centuries. From its center of origin in Ethiopia, coffee
made its way to Yemen, possibly around the 6th century,
with the first record of consumption as a beverage by
practitioners of Sufism around 1450. From Yemen, coffee
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spread to Cairo, Damascus, and Istanbul, leading to the
birth of the coffeehouse. Following this, coffeehouses
opened in Europe, the first one in Venice in 1645 and in
Oxford in 1650. The first coffeehouse in the United States
opened in Boston in 1689. The tradition of coffeehouses as
meeting places where news, political debate, and ideas are
exchanged still continues (Vega, 2008). The opening of the
first “Peet’s Coffee & Tea” shop in San Francisco in 1966
was probably one of the significant changes in coffee
consumption, causing the expansion of the specialty coffee
industry in the United States. This was followed by the
opening of the first Starbucks store in Pike’s Place in
Seattle in 1971. In 1974, Erna Knutsen coined the phrase
“specialty coffee” to describe the high-end, green coffees
of limited quantities she sold to small roasters; the
coffees were sourced from specific geographic microclimates
and had unique flavor profiles. The growth of the specialty
coffee industry led to the formation of the Specialty
Coffee Association of America (SCAA) in 1982. Today, SCAA
is the largest coffee trade organization, with nearly 2,500
company members (SCAA, 2016). In the early stages of the
specialty coffee industry development, there was a lack of
definition of what specialty coffee was and how to quantify
it. In 2009, the SCAA published revised quality standards
for specialty coffee. To qualify as specialty, the coffee
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had to meet a minimum cupping score of 80 out of a 100point scoring system (Steiman, 2013).
Economics
Worldwide, an estimated 125 million people are dependent
on coffee for their livelihoods (Osorio, 2002), with more
than 50 countries producing and exporting coffee, almost
all in the developing world (Lewin et al., 2004; NCA, 2017).
Like
any
commodity
trade,
the
coffee
trade
has
been
characterized by boom and bust cycles since the 1880s,
mainly due to an imbalance of supply and demand. In the
early 20th century, attempts to stabilize coffee prices
rested
on
efforts
of
individual
countries,
especially
Brazil. Through the “valorization” scheme of 1905–1908,
Brazil
bought
and
stored
large
amounts
of
coffee
and
administered a tax policy imposing new levies on coffee
hectares that was aimed at driving production down and
prices up (Thurston, 2013a). In the 1930s, when the coffee
market collapsed, Brazil, the largest producer, responded
by burning coffee or dumping it into the ocean. In the
following decades, the price of coffee has alternately
soared and dived, with the market hitting the lowest at 40
cents per pound in New York, while farmers’ production
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costs amounted to about 70 cents a pound. This has led to
poverty and food insecurity in countries where the majority
of coffee producers are subsistence farmers (Osorio, 2002;
Thurston, 2013b).
Significant
transformation
of
the
world
coffee
market
occurred in the latter half of the 20th century. During the
period
between
regulated,
with
1965
and
1989,
relatively
the
high
coffee
price
market
levels,
was
because
upward and downward trends were corrected through the
implementation of export quotas. The free-market period,
which began in 1990, had two sub periods of significantly
low price levels, 1989 to 1993 and 1999 to 2004, the latter
being the longest period of low prices ever recorded (ICO,
2014). Coffee production is generally characterized by
considerable
instability,
with
a
large
crop
one
year
followed by a smaller crop the next. In the world coffee
market,
as
is
the
case
for
many
commodities,
price
volatility is a major concern for all stakeholders. In
exporting countries, price volatility leads to instability
in producer incomes and uncertainty of export earnings and
tax revenues. In importing countries, price volatility
affects
profit
margins
for
roasters,
traders,
and
stockholders (ICO, 2014). All these factors make the coffee
crop
less
attractive
throughout
the
supply
chain,
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especially
to
remunerative
growers,
crops
to
who
will
replace
seek
coffee.
other,
Despite
more
these
challenges, world coffee production has grown steadily
since the 1960s, although it will be difficult to maintain
this trend due to the continued rise in production costs,
problems
related
to
climate
change,
and
the
higher
incidence of pests and diseases (ICO, 2014).
Production
Coffee-producing areas are located in latitudes between 22º
N and 26º S. The environmental factors affecting coffee
growth
and
productivity
are
temperature,
water
availability, intensity of sunshine, wind, soil type, and
land
topography
(Descroix
&
Snoeck,
2009).
Optimal
temperatures for growing Arabica coffee are 18ºC during the
night and 22ºC during the day, although tolerated extremes
extend from 15ºC up to 30º C. Robusta coffee can tolerate
slightly higher temperatures, with optimal temperatures
between
22
and
28ºC
(Descroix
&
Snoeck,
2009).
Water
availability, in the form of rainfall and atmospheric
humidity, affects the growth of coffee. Most coffee-growing
regions are typically rain-fed, since land topography is
not conducive to installation of irrigation systems. For
Arabica growth, annual rainfall of 1,400 to 2,000 mm is
favorable, and for robusta, it is 2,000 to 2,500 mm.
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Rainfall below 800 to 1,000 mm for Arabica and 1,200 mm for
robusta can result in poor productivity (Descroix & Snoeck,
2009). The best relative humidity for robusta is 70% to 75%
and for Arabica it is around 60%. Natural or artificial
shade
is
recreate
provided
their
sunlight-tolerant
increased
to
coffee
original
forest
varieties
productivity.
plants
in
cultivation
environment,
have
been
However,
shade
to
although
developed
still
for
remains
useful, especially to mitigate the effects of extreme high
and low temperatures (Descroix & Snoeck, 2009). Strong
winds affect the growth of coffee, with significant damage
caused by cyclones. Regions frequently impacted by cyclones
include
Madagascar,
the
Philippines,
the
Caribbean,
Vietnam, and Hawai’i. The best soils for coffee growing
include alluvial and colluvial soils with texture, as in
volcanic formations, and good drainage. Soil depth of at
least 2 m is required for taproot growth and development
(Descroix & Snoeck, 2009). Although flat lands or slightly
rolling hills are best suited for coffee growing, they are
not always available in many coffee-growing regions due to
the natural topography of the land. Flat areas allow for
mechanization. On steep slopes, mechanization is difficult
and production becomes costlier since conservation measures
need to be implemented to prevent soil erosion (Descroix &
Snoeck, 2009).
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Management Aspect
The proposed business can be fitted for a cooperative.
The
organizational
form
can
have
advantages
and
disadvantages for the business operation.
Marketing Aspect
This aspect will present the potential and target
market
for
customers
this
for
kind
this
of
kind
business.
of
The
service,
as
demand
of
the
well
as
the
competitive situation, were also discussed.
Technical Aspect
This
aspect
will
deal
with
the
preparation
of
establishing a coffee operation and specifications, the
layout of the plant site, pieces of equipment, and other
facilities to be followed by the actual operation of the
business.
Financial Aspect
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The financial aspect of the business includes the
operating expenditures in terms of business requirements
and capital of this project and other costs to maintain the
operation and legality of the proposed business.
VI. Definition of Terms
1. Coffee - a beverage made by percolation, infusion, or
decoction from the roasted and ground seeds of a coffee
plant.
2. Coffee Beans - the usually dried and roasted seed of
a
tropical
plant
arabica and C.
(genus Coffea and
canephora)
from
especially C.
which
coffee
is
prepared.
3. Sustainable Livelihood Program - capability-building
program that provides access to opportunities that
increase the productivity of the livelihood assets of
the poor, vulnerable, and marginalized communities,
in order to improve their socioeconomic well-being.
4. Caffeine - is a central nervous system stimulant of
the
methylxanthine
class.
It
is
mainly
used
recreationally, as a eugeroic or as a mild cognitive
enhancer
to
increase
alertness
and
attentional
performance.
5. Antioxidants - are compounds that inhibit oxidation,
a chemical reaction that can produce free radicals.
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Autoxidation
leads
to
degradation
of
organic
compounds, including living matter. Antioxidants are
frequently
polymers,
added
fuels,
usable lifetimes.
to
and
industrial
products,
lubricants,
to
such
extend
as
their
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CHAPTER II
METHODS, PROCEDURES AND SOURCES OF DATA
This chapter presents the method and procedure used
in gathering the data needed to apply and test the viability
of the proposed business.
RESEARCH METHOD USED
In the conduct of preparing this study, the researcher
used
the
descriptive
method
of
research.
Descriptive
research involves gathering data that describes events and
then organizes, tabulates, depicts, and describes the data
collection (Glass & Hopkins, 1984). It often uses visual
aids such as graphs
and charts to aid the reader in
understanding the data distribution. Because the human mind
cannot extract the full import of a large mass of raw data,
descriptive statistics are very important in reducing the
data
to
a
manageable
form.
When
in-depth,
narrative
descriptions of small numbers of cases are involved, the
research uses description as a tool to organize data into
patterns that emerge during analysis. Those patterns aid
the mind in comprehending a qualitative study and its
implications.
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The
methods
of
collecting
data
for
descriptive
research can be employed singly or in various combinations,
depending on the research questions at hand. Descriptive
research
often
calls
upon
quasi-experimental
research
design (Campbell & Stanley, 1963). Some of the common data
collection methods applied to questions within the realm
of
descriptive
research
include
surveys,
interviews,
observations, and portfolios.
With the research method used, the researcher was able
to identify and study the potential market of the proposed
business venture, the competitors and be able to determine
the operational and financial concerns of the proposed
business. Moreover,
the
researcher
also
identifies
the
problems that may arise during the course of operation of
the said ventured business.
Research Locale
The study was conducted in the vicinity of Carranglan
Nueva Ecija and other nearby cities like San Jose City
Nueva Ecija. The selected establishments and households
will serve as reference of the study.
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The Respondents of the Study
The respondents of the study are the residents and
coffee shop owners of Carranglan Nueva Ecija and San Jose
City Nueva Ecija,
the respondents whose classified as
household owners are randomly selected by the researchers
and the coffee shop owners on the other hand are identified
by the researchers to gather information.
Sample and Sampling Procedure
Sampling design refers to the method or strategy used
to select a subset of individuals or elements from a larger
population for inclusion in a research study. It involves
making decisions about how to obtain a representative
sample that accurately reflects the characteristics of the
target population.
A simple random sampling was used in the study.
It
involves
choosing
a
smaller
subset
of
a
larger
population and done randomly. Researchers tend to choose
this
method
of
sampling
when
they
want
generalizations about the larger population.
to
make
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RESEARCH INSTRUMENT
The research methods used by the researcher in the
study are the following techniques:
Interview
An interview is a conversation between two or more
people where An interview is a conversation between two or
more people where questions are asked by the interviewer
to elicit facts or statements from the interviewee. It is
the
process
of
gathering
information
through
verbal
communication. The researchers asked some questions to the
target
respondents
interviewer
to
for
elicit
a
reply.
facts
or
are
asked
statements
by
the
from
the
interviewee. It is the process of gathering information
through verbal communication. The researchers asked some
questions to the target respondents for a reply.
The
researcher
conducted
an
interview
with
the
selected target market to gather accurate information and
feedback that will be useful in the study.
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Questionnaire
It is a form containing questions which are subjected
for distribution to the target respondents for replies to
determine the feasibility of the proposed business and to
gather information from an existing similar business.
The questionnaires were given to the target market,
the household owners were randomly visited at their houses
and let them answer the questionnaires. The coffee shop
owners were visited on the scheduled free time to avoid
disturbance in their business operation.
Reliability and Validity of Instruments
Before
researcher
the
researcher
checks
the
conducts
validity
of
an
the
interview,
the
questionnaires
through a dry run. They let residents of the other barangays
answer the questionnaire and after that, they ask if some
questions are confusing or hard to understand. After the
revision of the interview question, they seek the approval
of the research coordinator and a go signal to conduct the
interview.
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ADMINISTRATION OF THE INSTRUMENT
Permission from the respondents was secured by
the researcher. Upon the approval of the request, the
researcher personally administered the instrument using the
questionnaire
as
an
interview
guide.
The
timing
was
important as the researcher had to set a cordial mood to
get the cooperation of the respondents. The sequence of
questioning was also critical because it might mislead and
appear redundant to them. To this effect, the researcher
had to memorize in order the outline of the instrument as
if it were petty talk.
TOOLS IN FINANCIAL ANALYSIS
In determining the financial feasibility of the proposed
business, various financial analytical tools were used:
PAYBACK PERIOD
It tells the number of years to fully recover the
initial cost of investment. It is the ratio of initial
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investment and the annual cash inflows for the recovery
period. It is computed as follows:
PAYBACK PERIOD = NET INVESTMENT
NET INCOME
AVERAGE RATE OF RETURN
It represents the ratio of the average annual after
taxes to the average investment in the project. Computation
of the Average Rate of Return is shown below:
AVERAGE RATE
OF RETURN
=
AVERAGE ANNUAL INCOME AFTER TAX
COST OF INVESTMENT
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CHAPTER III
PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA
This chapter deals with the presentation, analysis,
and interpretation of data resulting from the answers of
the respondents. The study attempted to determine and
analyze management and operation practices and planning
utilized
in
Coffee
Production
in
Barangay
MInuli,
Carranglan Nueva Ecija based upon the perceptions of the
respondents.
The study relied mainly on the perceptions of the
respondents
strategies
in
as
the
well
study
as
on
the
measures
areas
taken
to
of
marketing
minimize
the
problems.
MARKETING ASPECT
Marketing
business
can
is
one
of
the
do.
Not
only
most
does
important
marketing
things
build
a
brand
awareness but it can also increase sales, growth, and
customers. As simply defined it is in marketing where the
money is. It is the most crucial part of any business
activities because it is a process of informing the target
market about the product or service being introduced, it
sustains
the
business
sustainability,
and
to
keep
lastly,
on
the
marketing
right
is
an
track
of
important
strategy to ensure the growth of the proposed business.
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Market Analysis
The target market of the proposed business are the
residents of Carranglan Nueva Ecija as well as the coffee
shops within the locality and the nearby city like San Jose
City, Nueva Ecija wherein a numerous number of coffee shops
are operating within the vicinity.
The proposed business will be established at Barangay
Minuli for the said barangay is more accessible for the
potential market and the place is favorable for the coffee
bean farmers.
Marketing Strategy
A
marketing
strategy
helps
create
products
and
services with the best chances of making a profit. Through
this, a newly created business will be able to create a
competitive advantage through its competitors if studied
and planned accordingly.
The following marketing strategies show the tactics
used by the proponent on how to attract and call the
attention of the customers to patronize the service of the
proposed business.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Advertising
In this digital era, traditional marketing still
has
its own stand in promoting a business. The use of tarpaulin
will be used to inform the public about the business
venture. Banners will be placed in the areas that can easily
be seen by the passer by.
Social Media Marketing Strategy
Today, social media plays a vital part in the life of
everyone around us. The use of social media platforms can
reach a wide range of target markets and can easily be seen
by the market. The use of social media platforms like
facebook, instagram, twitter and tiktok can be used to
promote the proposed business venture. Blogs can also be
used in promoting the business venture.
Promotion
To be able to reach the market the said business must
extensively promote the business. The business may attend
trade
fairs
established
by
the
Local
Government
Unit
through the Department of Industry. Moreover, it will be
necessary to pay visits to the coffee shops to offer
competitive prices for the coffee to be their regular
supplier.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Target Market
The proposed business venture is set to establish at
Barangay Minuli, Carranglan Nueva. The area will serve as
a physical store and production area for the coffee.
The target market of the proposed business is the
following:
● Residents - with the continued inflation, locally
produced coffee will be much cheaper compared to the
commercially produced coffee.
● Store Owners - an opportunity for locally produced
coffee to be known easily to the market if the product
will be able to sell in the local stores in the
locality like in the stores where the travelers make
their stopovers.
●
Coffee shop Owners -
SWOT Analysis
Coffee production business is one of many businesses
that can easily generate sales as long as the business is
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
well positioned and equipped to produce a quality coffee
that will be available to the market.
Strength
● Growing Demand - coffee is one of the most consumed
beverages nowadays and the increasing consumption will
equate to growing demand for coffee.
● Product Diversity - coffee production has a wide range
of products like blends, roast and flavors that can
address the different preferences of the customers.
● High Profitability - Coffee Production in the locality
was the first coffee production around the area that
can yield high income.
Weakness
● Dependency on weather
● Long Growth Cycle
● Lack of training for the coffee growers
Opportunities
● Emerging market
● Growing coffee culture
● Continuous high demand for coffee
Threats
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
● Disease and pest
● Existence of commercially produce coffee
● Technical information is limited
● Entry of imported coffee
Product Description
The proposed business venture will focus on production
of ground coffee and coffee beans. The table below will
enumerate the corresponding size of the coffee together
with its corresponding price.
Ground Coffee
Price
100 grams
P150.00
150 grams
P175.00
250 grams
P200.00
Coffee Beans
Price
250 grams
P200.00
500 grams
P350.00
1000 grams
P530.00
TABLE 1. PRICE OF GROUND AND COFFEE BEANS
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
PROJECTED DEMAND
The demand analysis was conducted in Carranglan
Nueva Ecija including the number of households in the said
locality, the travelers that had stopovers and the coffee
shops in the nearby town and city. The population increase
will be at 0.028% every year. The researcher used only 50%
of market acceptability of 80%. the annual demand got from
multiplying the population by 50% of market acceptability
which is 40%.
YEAR
NUMBER OF
MARKET
MONTHLY
HOUSEHOLDS
ACCEPTABILITY
DEMAND
2023
3470
76
999
2024
3568
78
1,113
2025
3668
80
1,174
2026
3771
82
1,237
2027
3877
84
1,303
TABLE 2. PROJECTED DEMAND ANALYSIS
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Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
YEAR
COMPETITORS
CUSTOMER OF
EACH
COMPETITOR
TOTAL
CUSTOMERS
(MONTHLY)
2023
8
110
880
2024
10
115
1,150
2025
12
120
1,440
2026
14
125
1,750
2027
16
130
2,080
TABLE 3. PROJECTED SUPPLY ANALYSIS
Management Aspect
This represents the form of the organization that the company will adopt
as well as the organizational chart, job specification, and description, hiring, and
training program, and the compensation scheme of the business.
Form of Organization
The
business
Cooperatives
are
will
be
formed
people-centered
as
a
cooperative.
enterprises
owned,
controlled and run by and for their members to realize
their common economic, social, and cultural needs and
aspirations.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Cooperatives bring people together in a democratic and
equal
way.
employees,
Whether
users
the
or
members
are
residents,
the
customers,
cooperatives
are
democratically managed by the 'one member, one vote' rule.
Members share equal voting rights regardless of the amount
of capital they put into the enterprise.
As businesses driven by values, not just profit,
cooperatives share internationally agreed principles and
act together to build a better world through cooperation.
Putting fairness, equality and social justice at the heart
of
the
enterprise,
cooperatives
around
the
world
are
allowing people to work together to create sustainable
enterprises that generate long-term jobs and prosperity.
Cooperatives allow people to take control of their
economic
future
and,
because
they
are
not
owned
by
shareholders, the economic and social benefits of their
activity
stay
in
the
communities
where
they
are
established. Profits generated are either reinvested in the
enterprise or returned to the members.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Manpower and their Responsibility
The proposed business venture would have a total of
10 personnel broken down as follows: (5) Board of Directors
who have the knowledge and authority to manage the business
and (5) employees.
The
following
personnel
with
their
corresponding
duties, responsibilities and qualifications shall be needed
to operate the business.
Job Description
Board of Directors
● Take charge in decision making and implementing the
rules, regulations of the business, and sanctions for
the employees.
● Responsible for keeping all records of income of the
business.
● Provides a solution to the problems that may arise
during business operation.
●
Must have full and broad knowledge in managing the
business.
● Must have an adequate knowledge in coffee farming.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
● Responsible
for
marketing
the
products
to
the
potential market.
Production Operator
● Responsible in checking the produced coffee beans
● Responsible for repacking the ground coffee and coffee
beans.
● Must have an adequate knowledge in coffee farming
● Keep the working area clean.
● Ensures that the products will be delivered to the
market on time.
Salaries and Benefits
It is important to compensate the employees because
they are the pillars of every business. The workers will
have a scheduled compensation depending upon the operation
of the business.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Personnel
Number of
Salary
Employees
Board of Directors
5
30,000
Worker
5
5,000 (25,000)
Total
10
35,000
TABLE 4: SALARY SCHEDULE
Social Security System
All employees will be registered to SSS as required
by law. Employee's contributions will depend upon their
compensation bracket. Employees will be able to enjoy
insurance benefits especially the job they are indulged
with.
PhilHealth
It is created to implement universal health coverage
for every member. Its stated goal is to ensure a sustainable
health insurance program for all.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Technical Aspect
The technical study discusses the preparation and
process of establishing the proposed business venture. It
also provides an overview of the proposed location, as well
as the materials needed in the day-to-day operation of the
business,
and
lastly,
the
working
schedule
will
be
discussed.
Location Site
The location site of the proposed business is located
at Barangay Minuli, Carranglan Nueva Ecija with a total lot
area of 350 square meters. The said area will serve as the
physical
store
and
production
area
of
the
coffee
production. The proponents will rent the land and building
that serve as farming and storage facility of the proposed
business venture.
Materials Needed
This kind of business venture requires materials and
equipment used for the production of coffee. The materials
needed are as follows:
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Coffee Roaster
Coffee Bean Grinder
Screener of Dry Powder
Resealable Heat Pouch
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Vacuum Sealer
Solar Coffee Dryer
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Business Registration
Business registration required documents that needed
to be provided by the business owner. Registration of a
cooperative is quite different from registering a business
under
sole
proprietorship.
Aside
from
the
common
requirements such as permits and licenses, the cooperative
has another set of requirements needed to comply.
The Cooperative Development Authority (CDA) is the
only
government
registering
organizing
all
a
agency
responsible
types
of
cooperative
and
cooperatives.
requires
mandated
for
Furthermore,
economic
survey,
cooperative by-laws, the board of directors should also
have the articles of association, bond of accountable
officers and other requirements needed by the Cooperative
Development Authority.
Operating Schedule
The business will operate from Monday to Saturday. The
production operators are entitled to a day off once or
twice a week depending on the demand of the coffee needed
by the market.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Financial Aspect
The financial aspect of the business includes the
operating expenditures in terms of business requirements
and capital of this project consists of raw materials,
types of equipment to be needed, permits and licenses,
salaries,
and
cost
to
maintain
the
operation
and
the
legality of the proposed business and the popularity of it.
FINANCIAL ASSUMPTIONS
1. Revenue is expected to increase by 5% annually.
2. Salaries are expected to increase by 2% annually.
3.
Maintenance
expense
is
expected
to
increase
by
3%
increase
by
5%
annually.
4.
Utility
expenses
are
expected
to
annually.
5. The straight-line method will be used in depreciating
equipment and items of furniture.
6. Rent payments are expected to increase by 10% every two
years.
7.
Permits
and
Licenses
will
be
renewed
expected to increase parallel to the sales.
annually
and
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
SOCIO - ECONOMIC ASPECT
Every entrepreneur establishes their business to gain
profit. In addition to that for every pursued business, is
an
equivalent
job
for
those
who
are
underprivileged
depending on the kind of industry being established. In the
socio-economic aspect, it assesses the impact of ventured
business in the community.
Contribution to Income and Employment
As we are in a great recession, the creation of new
business means creating job opportunities for the community
where the business will be established. Opening of this
kind of business venture creates a way to earn money and
in the marginalized sector it will be the profession they
know for a living, and they will use it to escape the
bondage of poverty.
GOVERNMENTAL BENEFITS
The
business
is
expected
to
contribute
to
the
government in the form of taxes. The tax payment from the
business
would
help
the
local
government
in
the
implementation of its projects and maintenance of its
services.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
CHAPTER IV
SUMMARY, CONCLUSIONS AND RECOMMENDATION
This chapter presents a summary of the study, the
conclusion that can be drawn, and the recommendations
offered by the researcher.
Summary
The proposal of establishing a coffee production as a
livelihood program for the residents of Carranglan Nueva
Ecija is profitable based on the conducted interviews and
surveys. It is also supported by the Local Government Unit
because it provides employment and job opportunities to the
residents.
Findings
1. What form of business organization suits this kind of
business?
The business will be formed as a cooperative. As
businesses
driven
by
values,
not
just
profit,
cooperatives share internationally agreed principles
and act together to build a better world through
cooperation. Putting fairness, equality and social
justice at the heart of the enterprise, cooperatives
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
around the world are allowing people to work together
to create sustainable enterprises that generate longterm jobs and prosperity.
2. How much capital is needed in starting up this kind
of business venture?
The initial capital investment needed to start
and secure the continued operation of the business is
Php 200,020 which will be used to purchase all the
needed pieces of equipment, furniture, office supplies
and pay necessary expenses like permits and licenses.
3. What are the equipments needed in operating this
business?
This kind of business is easy to start because
of the minimal equipment needed to operate; this
includes Coffee bean grinder, Solar dryer, Vacuum
sealer, and Coffee roaster.
4. What is the impact of the business on the people and
society?
Every entrepreneur establishes their business to gain
profit. In addition to that for every pursued business, is
an
equivalent
job
for
those
who
are
underprivileged
depending on the kind of industry being established. In the
socio-economic aspect, it assesses the impact of ventured
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
business in the community. It contributes to employment in
the community and additional revenue to the government in
the form of tax.
CONCLUSION
Based on the findings, the following conclusions were
drawn:
1. The proposed business venture is a new concept in the
municipality and profitable and viable for implementation.
It will result in a higher return to the owner.
2. The project is socially and economically desirable and
will provide benefits to the government in the form of
taxes.
3. Venturing in coffee production can develop new skills
to the farmers of Carranglan wherein an opportunity to
learn in coffee plantations can be established through
training and seminars for the members of the cooperative.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
Carranglan- Off Campus
Joson, Carranglan, Nueva Ecija
RECOMMENDATIONS
Based on the findings and conclusions the following
recommendations are given:
1. The proposed business venture is a new concept in the
community
and
assistance
from
the
Department
of
Agriculture is highly recommended.
2. The coffee production requires the cooperative to
provide farmer education and support to ensure the
quality of the produced goods that will be sold to the
market.
3. Facilitate market linkages for the produce coffee of
the cooperative. Established connections can help the
cooperative to sell a bulk number of the products they
are offering.
4. Invest
in
further
development
of
the
process
of
producing world class coffee.
5. Intensify
the
marketing
strategies
of
the
said
business venture to reach a wide range of potential
market not only in the nearby city but in the province
as well.s