Project Aniwag

A Study on the Viability of an Organic Lettuce Farm
in Barangay Buda, Marilog District, Davao City

Dormile, Mark Irvir S.
Maputol, Jonathan N.
Mamaed, Sharmaine Dianne C.
Peafort, Kathleen Mae M.
Teves, Mark Adam S.
October 2014
Ateneo de Davao University

E. Jacinto St., Davao City 8016
Ateneo de Davao University
A Study on the Viability of an Organic Lettuce Farm

in Barangay Buda, Marilog District, Davao City
Project Aniwag
In partial fulfillment of the requirements in

Management Consultancy
Submitted to:
Ms. Rhea Jane V. Carpio, CPA
Submitted by:
Mark Irvir S. Dormile
Jonathan N. Maputol
Sharmaine Dianne C. Mamaed
Kathleen Mae M. Peafort
Mark Adam S. Teves
October 2014
Acknowledgment
We, the proponents of this feasibility study, would like to express our heartfelt, sincerest
and utmost gratitude to the following individuals who, in one way or the other, have contributed
greatly towards the completion and fulfillment of this study:
To our Almighty Father, for giving us the wisdom, strength, determination and incessant
guidance needed in making this feasibility study possible and a success.
To our respective parents, for the unfailing moral and financial support given all
throughout the duration of this study.
To Ms. Rhea Jane Carpio, CPA, subject professor and coach, whose moral support and
ideas have fuelled the proponents determination in making this study feasible. Without her
patience, unselfish provision and encouragement, this feasibility study would not have been
completed.
To Mr. Rodelio Carmelo F. Dalisay, whose brilliance and technical expertise about organic
farming has contributed significantly to the success of this study and for his generosity in
accommodating each of our queries. We could not have done anything without you, Sir.
To Atty. Romeo Cabarde, Jr., who helped us in finding resource people and organization in
the University who can make this study possible.
To Prof. Melba L. Manapol, PhD & Prof. Maria Theresa C. Dela Rosa, RSW of the social
work office, who generously gave their precious time in helping us find a location which best
suits this studys goals and for their invaluable support.
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To Ms. Janika Erikka J. Roque, who had willingly accompanied us in our visit to Brgy.
Buda and for providing us a copy of the community profile.
To Ms. Lorna Alderite of the City Agricultures Office, who have provided the knowledge
about the organic industry and technologies and information about organic vegetables and fruits.
And finally to the panelists, Dr. Cleofe Arib, CPA, MBA, DBA and Ms. Jocelyn A.
Gumpad-Joson, CPA, MBA, who have painstakingly read the paper, critiqued thoroughly the
content and scrutinized the minute details of this feasibility study towards its improvement and
future reference.
P r o j e c t A n i w a g | ii
Table of Contents
Table of Contents
Acknowledgment ............................................................................................................................. i
Table of Contents ........................................................................................................................... iii
List of Charts................................................................................................................................ viii
List of Figures .............................................................................................................................. viii
List of Tables .................................................................................................................................. x
I.
Summary of the Project ......................................................................................................... 1

A.
Name of the Project .......................................................................................................... 1
B.
Location ............................................................................................................................ 1
C.
Descriptive Definition of the Project ................................................................................ 2
D.
Projects Long Range Objectives ..................................................................................... 4
E.
Feasibility Criteria ............................................................................................................ 4

a.
Market Feasibility ........................................................................................................ 4
b.
Technical Feasibility .................................................................................................... 5
c.
Financial Feasibility ..................................................................................................... 5
d.
Socio-economic Feasibility .......................................................................................... 5
e.
Organization and Management Feasibility .................................................................. 5
F.
Highlights of the Project ................................................................................................... 6

a.
History.......................................................................................................................... 6
P r o j e c t A n i w a g | iii
b.
Nature of the Industry .................................................................................................. 6
c.
Mode of Financing ..................................................................................................... 15
G.
Major Assumptions and Summary of Findings and Conclusion .................................... 15

a.
Market Feasibility ...................................................................................................... 15
b.
Technical Feasibility .................................................................................................. 17
c.
Financial Feasibility ................................................................................................... 18
d.
Socio-economic Feasibility ........................................................................................ 19
e.
Organization and Management Feasibility ................................................................ 19
II. Market Study ............................................................................................................................ 20

A.
Product Description ........................................................................................................ 20
B.
Market Description ......................................................................................................... 21
C.
Demand ........................................................................................................................... 22
D.
Supply ............................................................................................................................. 25
E.
Demand-Supply Analysis ............................................................................................... 27
F.
Price Study ...................................................................................................................... 28
G.
Marketing Program ......................................................................................................... 33
III.
Technical Feasibility ........................................................................................................... 38
A.
The Products ................................................................................................................... 38
B.
Production Process.......................................................................................................... 40
C.
Farm Size and Production Schedule ............................................................................... 44
P r o j e c t A n i w a g | iv
D.
Machinery and Equipment .............................................................................................. 46
E.
Farm Location ................................................................................................................. 52
F.
Farm Layout.................................................................................................................... 53
G.
Building and Facilities .................................................................................................... 54
H.
Raw Materials and Supplies ........................................................................................... 55
I.
Utilities ........................................................................................................................... 56
J.
Waste Disposal ............................................................................................................... 58
K.
Product Cost.................................................................................................................... 61
L.
Labor Requirements........................................................................................................ 62
IV.
Financial Feasibility ............................................................................................................ 63
A.
Major Assumptions ......................................................................................................... 63
B.
Chart of Accounts ........................................................................................................... 65
C.
Total Project Cost ........................................................................................................... 70
D.
Initial Working Capital Requirements ............................................................................ 71

a.
Inventory Management .............................................................................................. 71
b.
Cash Management ...................................................................................................... 72
E.
Alternative Sources of Financing ................................................................................... 73
F.
Sources of Financing the Project .................................................................................... 74

a.
Capital Structure Policy ............................................................................................. 75
b.
Cost of Capital ........................................................................................................... 75
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c.
Dividend Policy.......................................................................................................... 76
G.
Pro-forma Financial Statements ..................................................................................... 77
H.
Financial Analyses ........................................................................................................ 108

a.
Horizontal Analyses ................................................................................................. 108
b.
Vertical Analyses ..................................................................................................... 109
c.
Financial Ratios........................................................................................................ 114
d.
Capital Budgeting Analysis ..................................................................................... 118
I.
Accounting and Control Plan........................................................................................ 125

a.
Revenue Cycle ......................................................................................................... 125
b.
Expenditure Cycle .................................................................................................... 127
V.
Socio-economic Study ...................................................................................................... 130
VI.
Organization and Management Study ............................................................................... 132
A.
Basic Consideration in Forming the Organization ....................................................... 132
B.
Form of Ownership ....................................................................................................... 134
C.
Organizational Chart ..................................................................................................... 138
D.
Officers and Key Personnel .......................................................................................... 138
E.
Project Schedule ........................................................................................................... 147
Appendices .................................................................................................................................. 149

Appendix 2.1 - Computation Of Projected Population ........................................................... 149
Appendix 2.2 - Detailed Computation for Past Consumption ................................................ 151
P r o j e c t A n i w a g | vi
Appendix 2.3 Survey Questionnaire .................................................................................... 152

Appendix 2.4 Summarized Survey Results ......................................................................... 153
Appendix 2.5 Demand Projection ........................................................................................ 155
Appendix 2.6 Computation of the Average Growth Rate in Demand ................................. 155
Appendix 2.7 Computation of Forecasted Supply ............................................................... 157
Appendix 2.8 - Justification for Price Assumption ................................................................. 157
Appendix 2.9 Computation of Projected Sales .................................................................... 159
Appendix 3.1 Five-Year Production Schedule .................................................................... 160
Appendix 3.2 Drip Irrigation System Cost Model ............................................................... 165
Appendix 3.3 Farm Area Technical Description ................................................................. 166
Appendix 3.4 Additional Details and Costing of the Farm Building .................................. 167
Appendix 3.5 Technical Drawings and Costing of the Comfort Room (Arborloo Toilet) .. 168
Appendix 3.6 FIBECO - How To Apply For Electric Service ............................................ 170
Appendix 4.1 Basis of Debt Borrowed ................................................................................ 171
Appendix 4.2 Computation of Weighted Average Cost of Capital ..................................... 173
Appendix 4.3 Sowing Cost Schedule................................................................................... 175
Appendix 4.4 Transplanting Cost Schedule......................................................................... 176
Appendix 4.5 Cooperative Development Cost .................................................................... 178
Appendix 4.6 Basis for Subscribed/Paid-up Share Capital and Membership Fee ............... 179
Appendix 4.7 Membership Application Process ................................................................. 180
P r o j e c t A n i w a g | vii
Appendix 4.8 Monthly Salaries and Wages Schedule ......................................................... 181

Appendix 6.1 Philippine Health Insurance Corporation (PhilHealth) Form ....................... 182
Appendix 6.2 Application for Certificate of Tax Exemption for Cooperatives Form ......... 184
Appendix 6.3 Schedule of Documentary Requirements ...................................................... 185
Appendix 6.4 Certificate of Tax Exemption ........................................................................ 187
Appendix 6.5 Social Security System (SSS) Form .............................................................. 191
Appendix 6.7 Treasurers Affidavit ..................................................................................... 193
List of Charts
Chart 3.1 Site Preparation Process..
40
Chart 3.2 Lettuce Crop Cycle..
44
Chart 4.1 Chart of Accounts
65
List of Figures
Figure 1.1 Types of Lettuce...
Figure 1.2 Logo of Go Organic! Philippines....
10
Figure 2.1 Iceberg Lettuce..... 20

Figure 2.2 Romaine Lettuce... 20
Figure 2.3 Forecasted Demand of Lettuce in the next 5 years..
23
Figure 2.4 Forecasted Supply of Lettuce in the next 5 years....
26
P r o j e c t A n i w a g | viii
Figure 2.5 Survey on EMCs... 34

Figure 2.6 Aniwag Logo.... 35
Figure 3.1 Nutritional Information of Iceberg Lettuce.
38
Figure 3.2 Nutritional Information of Romaine Lettuce...
39
Figure 3.3 Bed Layout...
40
Figure 3.4 Mulching..
41
Figure 3.5 Sowing in Trays...
41
Figure 3.6 Trays on Nursery Benches 42

Figure 3.7 Transplanting.... 42
Figure 3.8 Drip Irrigation System.. 42
Figure 3.9 Foliar Fertilizer..... 43
Figure 3.10 Irrigation Illustration..
43
Figure 3.11 Farm Location....
52
Figure 3.12 General Farm Layout.. 53

Figure 3.13 Farm Building Floor Plan... 54
Figure 3.14 Supervisors Quarters..... 54
Figure 3.15 Comfort Room 55
Figure 3.16 Schematic of Arborloo Toilet by SuSan Center of Xavier University......
59
P r o j e c t A n i w a g | ix
List of Tables
Table 1.1 Production of Vegetables by Metric Ton
12
Table 2.1 Family Income per Class in the Philippines
21
Table 2.2 Demand of Lettuce in Davao City from 2009-2013....
22
Table 2.3 Lettuce Production Volume (in metric tons)...
25
Table 2.4 Competitor Information...
26
Table 2.5 Demand-Supply Gap...
27
Table 2.6 Farmgate Prices of Lettuce..
28
Table 2.7 Wholesale Prices of Lettuce
28
Table 2.8 Average Monthly Wholesale Prices of Lettuce (Iceberg)...
29
Table 2.9 Price of Competitors and Distributors for the Month of August (in PhP)...
30
Table 2.10 Computation of the Prospective Prices of Lettuce (Iceberg).
32
Table 2.11 Projected Mean Price per Year..
33
Table 3.1 Farm Utilization Rate..
45
Table 3.2 Estimated Yearly Production Volume
46
Table 3.3 List of Machinery and Equipment for the Farm.
46
Table 3.4 List of Machinery and Equipment for the Davao Office
51
Table 3.5 List of Raw Materials and Supplies.
55
Table 3.6 Labor Requirements
62
Table 4.1 Weighted Average Cost of Capital...... 120
Project Aniwag |x
I. Summary of the Project

A. Name of the Project
The team has decided on the name Project Aniwag. Aniwag is a combination of
two Visayan words, ani and uswag. Ani means yield from farming and uswag means
progress. These two words best signify the groups organic lettuce farm project for the
community in Barangay Buda.
B. Location
The place chosen for the establishment of an organic vegetable farm is at Barangay
Buda, Marilog District, Davao City. Meanwhile, an office will be set up at Davao City
Chamber of Commerce and Industry Inc. (DCCCII) Bldg. at JP Laurel Avenue, Davao City.
Buda is a portmanteau for Bukidnon and Davao. It is a mountainous and landlocked
area situated along the mountain slopes of Mount Talomo and is the last barangay of Davao
City before the Bukidnon province. It has a relatively cooler weather and a high incidence of
rain due to it being situated at a higher altitude. In addition, there are two rivers traversing
within the district of Marilog Davao River and Simod River. Moreover, its main source of
electricity is First Bukidnon Electric Company (FIBECO). Due to this topographical
composition and the availability of electricity, Buda is ideal for the cultivation of vegetables.
Buda is largely an agricultural area which primarily produces vegetables and fruits.
Majority of the residents rely on farming as a means of living thus there would be minimal
problem in the sourcing of labor. Furthermore, Buda is 88.4 km away from Davao City or an
Project Aniwag |1
hour and a half away from downtown Davao via private vehicles but it could reach up to three
hours of travel if using public utility vehicles. It can be reached via the Davao-Bukidnon
Road and most of the vegetable produce is transported to the city using jeepneys.
On the micro-level, the specific land to be cultivated as an organic vegetable farm in
Buda belongs to the ancestral domain of the indigenous people (Lumads).
An office will be instituted in Davao City in order to initiate customer confidence and to
establish a connection between the entity, and potential and existing customers. It will also
serve as a grievance center for the customers, should problems or complaints emerge. The
office will be leased at Davao City Chamber of Commerce and Industry, Inc. Corporate
Center which is near major establishments and potential customers in Abreeza Mall, F. Torres
St., Gaisano Mall of Davao and SM Lanang Premier. The place is easily accessible through
public utility jeeps (PUJ), private vehicles and taxis. Moreover, the monthly lease rental is
reasonably priced at 7,000 pesos per month.
C. Descriptive Definition of the Project
Project Aniwag is a social enterprise that aims to uplift the livelihood of the farmers of
Barangay Buda through the formation and strategic operation of an organic lettuce farm. The
enterprise shall distribute the produce to restaurants and other related establishments which
serve lettuce in salads or other recipes.
Organic farming is a method of intensive agriculture, which is based on the effective
use of the whole complex of local conditions and resources (Sugdagroserv Consulting, 2012).
It promotes biodiversity and healthy interactions in the ecosystem by increasing long-term
Project Aniwag |2
soil fertility, controlling pests and diseases without harming the environment, and ensuring
that water stays clean and safe. Pests are kept away by natural pesticides such as neem juices
and insect-repelling plants, and water supply is not flooded with chemicals. As such, organic
farming yields products that are natural and nutritious. Through the years, the demand for
organic products has been increasing. As a social enterprise, the organic farm will not only
meet such increase in demand; vitally, it will offer a sustainable livelihood of easy-to-learn
trade, and low-cost and high economic efficiency farming to idle constituents of the
community, thus providing a significant source of income to the participants of the project.
A cooperative shall be established to carry out the organic farm social enterprise. The
members of the cooperative shall be the interested constituents of Barangay Buda, each
mandated to contribute a minimal amount as capital. Other sources of funds such as grants
from non-government organizations (NGOs), micro-finance lending, and borrowings from
rural or commercial banks shall also be looked into and engaged with. Government
assistance from agencies such as the City Agriculturist Office and Bureau of Plants Industry
shall also be sought.
Essentially, Project Aniwag is driven to improve peoples quality of life by providing a
catalyst for community development. Importantly, it will also stimulate social cohesion and
create a sense of community ownership and pride to the participating locals of Barangay Buda.
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D. Projects Long Range Objectives

Within ten years from its establishment, this project aims to:
Fully penetrate the Davao City market by attaining a dominant market share, and
sustain the market supply;
Promote a healthier lifestyle among citizens through the introduction of organic
lettuce to business establishments like restaurants, hotels and resorts;
Stimulate and maintain economic stability and growth through employment and job
security to communities especially the farmers who invest their time and effort in
planting and cultivating organic products;
Address the various social and economic needs of Brgy. Buda through proper
utilization of the cooperatives community development fund;
Fully realize social entrepreneurship wherein people invest in people, work towards
one common goal, and achieve mutual economic success and prosperity between and
among its members
E. Feasibility Criteria
a. Market Feasibility
The primary issue on market feasibility is whether the business can penetrate the
identified market. Underlying considerations are (1) gap between market supply and
demand, (2) if the gap is not substantial, whether the business can establish a competitive
advantage and implement a competitive marketing plan to attract demand already met by
existing suppliers, and (3) whether the projected demand captured by the business is
substantial enough to justify implementation of the project.
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b. Technical Feasibility
Important considerations under technical feasibility are the following: (1) availability
of supply for seeds or seedlings, (2) availability and continuity of supply of materials for
operations such as organic fertilizers, (3) availability of labor in the area for operations and
maintenance, and (4) irrigation. Other technical aspects such as area layout, waste
management and harvest schedule are also included in the study.
c. Financial Feasibility
Critical measures of financial feasibility are the return on investment and payback
period. These will be seen relative to industry standards and investor expectations.
Affecting these measures are (1) availability and mix of various sources of financing-debt
and equity and (2) possibility of grants from the government and non-government
organizations.
d. Socio-economic Feasibility
Socio-economic benefits desired for the project are the following: (1) increase the
level of income of the people in the community, (2) provide jobs to idle people on the
community, and (3) increase standards of living of the people participating in the project.
e. Organization and Management Feasibility
Primary consideration under organization and management feasibility is the
effectiveness and efficiency of a cooperative form of business organization in the
implementation of the project.
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F. Highlights of the Project

a. History
The concept of conducting a feasibility study on a social entrepreneurship project
was inspired by the groups visit to Dayaw Coffee & Tea at the fountain court of SM
Lanang Premier. The said shop sources its coffee beans from Coffee for Peace, an
organization which aids Lumads in Mount Apo in growing and distributing their
handpicked coffee beans at a fair price to the market. With the vision of promoting food
sustainability and, at the same time, produce income for the recipient community, the
social entrepreneurship concept was narrowed in a group deliberation to a community
garden project wherein vegetables will be tended by a community and sold in retail to its
own members and nearby communities. The group then approached the University
Community Engagement and Advocacy Council (UCEAC) of Ateneo de Davao University
(AdDU) to aid in identifying possible recipient communities. UCEAC identified AdDUs
partner community in Brgy. Buda and referred us to the Social Work Field Office (SWFO)
for actual community visits and research. The need of the said community, however, goes
beyond a community garden. As proposed by UCEAC and SWFO, the group has decided
to create a project feasibility study on the establishment of an organic lettuce farm instead.
Thus, Project Aniwag was born.
b. Nature of the Industry
Description. Organic agriculture is defined by the International Federation of
Organic Agriculture Movement (IFAOM) as the agricultural system which promotes
environmentally, socially and economically sound production of food, fibers and biofuels.
Project Aniwag |6
It does not use chemicals as fertilizers, insecticides and pharmaceuticals but allows the
employment of natural means to combat pests and increases agricultural yield.
Industry set in this project and discussed in this chapter is that of organic vegetable
farming. However, due to limitations on the availability of data, vegetable farming
industry in general is also used for analysis.
Role in the Economy. In the Philippines, agriculture in general has played a crucial
role in the economy for the past years, contributing to as much as 32% of the countrys
total employment and 12% to the nations Gross Domestic Product in 2013 according to
World Bank. It usually consists of small, medium and large farms ranging from
subsistence to commercial production and utilizing conventional methods (Tejada, Abrina,
Fernando, & Carating, 2010).
Product lines. According to Organic Certification Center of the Philippines, organic
farming in the Philippines mainly yields the following produce:
1. Sugar
2. Rice
3. Fruits (Other than listed)
4. Corn
5. Cassava
6. Vegetables (Other than listed)
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7. Rootcrops
8. Mango
9. Papaya
Organic vegetables produced include bell pepper, bitter gourd (ampalaya), carrots,
cucumber, eggplant, radish, squash, lettuce, potato, ginger, and other vegetables.
Narrowing down to lettuce, some identified kinds which are commonly consumed
and/or produced within Davao City are Iceberg, Romaine, LolloRossa, Curly Green and
Curly Red which includes non-organic produces.
Figure 1.1 Types of Lettuce

History. Organic agriculture is considered as part of the national government
program to address rural poverty. Its formal introduction to Philippine agriculture can be
traced back to the 1980s.
As early as 1980s, a group of scientist and farmer groups initiated Magsasaka at
Siyentipiko para sa Ikauunladng Agham Pang-Agrikultura(MASIPAG), a non-government
organization which envisions the sustainable use and management of biodiversity. The
Project Aniwag |8
organization introduced farming technologies which promote native practices as an

alternative to the utilization of chemicals.
During 1990s, sustainability and the social aspects of alternative agriculture became
an important part of development work by NGOs in rural areas. The Sustainable
Agriculture Center of the Xavier University College of Agriculture (XUCA) then emerged
in 1991. It supported XUCA in terms of developing the methodologies and scientific
essentials of sustainable agriculture curriculum for the students, farmers and rural leaders,
not only in the Philippines, but also extending to other countries in Southeast Asia.
In June 2001, the Organic Certification Center of the Philippines (OCCP) which is an
independent organic standard setting and certification body was formed.
In July 2003, the Department of Agriculture through the Bureau of Agriculture and
Fisheries Product Standards (BAFPS) adopted the Philippine National Standards
Specifications for Organic Agriculture crafted by OCCP.
Intense and growing awareness of organic agriculture ensued in the early 2000s. Its
promotion went on through the networking of various NGOs and agriculture advocacy
groups. At the national level, the Department of Agriculture provided support to the
organic fertilizer industry and stressed the importance of going organic or at least reducing
inorganic chemicals as fertilizers. At the local level, local government units, together with
the NGOs, promoted organic agriculture to their provinces and municipalities, most
notably in Bohol, Cotabato, Bukidnon, the two Negros Provinces and Quezon.
Project Aniwag |9
In 2005, the Philippine National Organic Agriculture Board was established to

partake in policy making and planning processes. On December of the same year,
President Arroyo issued Executive Order 481 on the Promotion and Development of
Organic Agriculture in the Philippines which stressed the importance of organic
agriculture in the Philippines and provided government support through market
development, farmer education and extension assistance.
In 2008, the Department of Agriculture allotted 20 million pesos as government
support for organic agriculture. About 600 farmers were benefited through the System of
Rice Intensification production and Organic Fertilizer Production.
In the same year, a group of NGOs, farmers organizations, LGUs and sustainable
agriculture advocates established Go Organic! Philippines which commits to the
development and propagation of organic agriculture in the country.
Figure 1.2 Logo of Go Organic! Philippines

In 2010, Republic Act 10068 or the Organic Agriculture Act of 2010 was also
enacted to promote organic agriculture in the country which aims to dramatically reduce
dependence on the use of chemical fertilizers, pesticides and pharmaceuticals.
P r o j e c t A n i w a g | 10
Davao City has approved the implementation of a landmark ordinance in 2011

namely the Organic Agriculture Ordinance which mainstreamed organic farming in the
City.
President Benigno Aquino III stated his administrations support to organic farming
in his keynote address during the 8th National Organic Agriculture Congress last 2011.
In 2012, the Organic Agriculture Program was established to guide the nationwide
implementation of organic agriculture. According to the BAFPS, as of May of the same
year, a total of 688,220 hectares in the country have been certified as organic farms (Tejada
& Carating, 2010).
At present, with the increasing awareness of people with health and wellness, the
market for organic produce is one which continually grows.
Demand-Supply Situation. Since the 1980s, Philippines has consistently been an
agricultural net importer primarily propelled by the import of rice. Looking specifically at
the vegetable sector, there has been a stable demand in the recent years (Briones, 2013).
The demand for organic vegetables, particularly, is concentrated to the middle and high
income groups brought by the disparity of prices between organic and non-organic
products wherein the former is higher by 20-50% (Tejada, Abrina, Fernando, & Carating,
2010).
The agricultural industry in terms of the production of vegetables (by major
vegetable group) at the aggregate is increasing from years 2009-2013. The increases are
in small percentage increments based on the data by the Bureau of Agricultural Statistics
and as seen in Table 1.1. Moreover, the production is constantly at the four million metric
ton scale. At the micro-level, Mindanaos production of vegetables is also increasing from
year 2009-2013. Moreover, Mindanao accounts for almost 50% of the annual
vegetable produced in the country.
Table 1.1 Production of Vegetables by Metric Ton
Philippines
% Change
Mindanao
% Change
% of Mindanao
Production over
National
production
2009
4,294,271.00
1,936,511.03
45%
2010
4,344,641.00
1.2%
1,972,370.07
1.9%
45%
2011
4,376,314.00
0.70%
2,013,497.37
2.1%
46%
2012
4,388,136.00
0.30%
2,037,902.76
1.2%
2013
4,555,220.00
3.8%
2,179,847.95
7%
46%
48%
In terms of organic farming, on 2012 the Bureau of Agriculture and Fisheries

Standards stated that the Philippines has a total of 688,220 hectares of certified organic
farms (Tejada & Carating, 2010). However, there are still no clear sources of data
regarding organic farming nationally and regionally especially in terms of production.
Growth Patterns. The agricultural industry, to which organic farming generally
belongs, has a gradually declining share to the Philippine economy. From the 29.7% share
in the economy during 1946, the agricultural industry shrunk to almost a third after roughly
seven decades at 11.1%. Looking upon its historical trend, it is observed to have unstable
growth even differing drastically on a quarterly comparison primarily due to the damage
brought by the regular occurrence of natural calamities such as typhoons.
Despite the shrinking share of agriculture in the economy, according to the National
Statistical Coordination Board, the Philippines maintains a high Gross Value Added
amount in comparison to the other ASEAN countries, placing as second highest in the
region at US $ 15,397 million.
The trend of organic farming though has been upward sloping brought by the
increasing awareness of Filipinos towards a healthy lifestyle. In Davao City, the middle
and upper class market has a growing demand for different kinds of organic vegetables
such as lettuce, cabbage, kale, arugula, cherry tomato, bell pepper, and also organic herbs
such as basil (Dalisay, 2014). A case in point would be the 45% dramatic increase of the
organic production area between years 2008 and 2009 as cited by the Bureau of
Agricultural Research.
Problems and Potentials. The vegetable industry in general is faced with various
kinds of threats and constraints which shrinks the countrys potential to further the industry.
Besides from the imminent distress brought by force majeure such as natural calamities, of
which the typhoons averages 8-9 times of landfall annually, and crop pestilence, Filipino
farmers are often constricted by technological, economic and political forces.
The technological constraint is brought primarily by the lack of knowledge of small
farmers to the proper or optimal farming techniques though there are various agricultural
research conducted in the country. This technological constraint becomes more relevant
in organic farming since it requires a different methodology and observes several restraints
as opposed to conventional farming, such as non-usage of pesticides.
The lack of coordination among vegetable producers, wholesalers, retailers and

customers also poses a threat of overproduction which could worsen when products are left
undelivered due to high transportation cost or lack of proper infrastructures such as farmto-market roads. With limited knowledge of the farmers regarding possible distribution
channels of their vegetable products, who in majority direct their products to public
markets, vegetables may be wasted or left to decay.
Aside from the unfamiliarity of farmers of possible distribution channels, the
hierarchy present in most agricultural product distribution makes it harder for farmers to
profit from their products since middlemen and distributors often charge high commission
rates while the farmers are left with no choice but to accept their only known pathway
towards reaching the market.
The high cost of production materials and the limited access to capital especially to
small farmers is another constraint in the industry. Looking specifically at organic farming,
the cost is concentrated initially at the procurement of organic seeds which is often sourced
overseas, and the preparation of land and structures.
Organic vegetables, in particular, also has a limited customer base (mostly belonging
in the middle to upper class) which presently restrains it from absolutely competing with or
substituting commercial vegetables in the general market (e.g. public markets).
Though organic vegetables has a limited customer base, the burgeoning demand for
organic vegetables brought by the increasing consciousness by the Filipino society towards
physical well-being juxtaposed with its limited supply (as assessed by Dr. Dalisay during
an interview) within the country poses an opportunity to invest in a labor-intensive venture

that could employ a large number of people, thereby improving the nutrition condition of
both the people in the community where the organic vegetables are produced and the
general consumers of the products.
c. Mode of Financing
Four modes of financing will be used. They are the following:
1. Long-term borrowing from rural banks
2. Short-term borrowing from banks
3. Capital contribution from community members
4. Membership fee of members
Specific capital structure is indicated in the Financial Feasibility Chapter of this
paper.
G. Major Assumptions and Summary of Findings and Conclusion
a. Market Feasibility
The government has no current data for the demand and supply of organic lettuce
since the City Agriculturist Office is still on the groundwork of creating a database for
organic agricultural products.
With respect to the gauging of the demand level, the information that is derived is
only the demand for all kinds of lettuce, whether conventional or organic, for Davao City.
The demand from years 2009-2013 were derived using an estimated per capita
consumption for lettuce multiplied to the population of Davao City stratified into Class A-
B (high-income earners) and C (middle-income earners). The usage of Class A, B, and C

is due to lettuce being an elastic commodity, more so those classified as organic, brought
by the presence of cheaper vegetables or its conventional counterpart alternatives.
On the other hand, the supply levels used from 2009-2013 were derived from the
Bureau of Agricultural Statistics representing the supply for all kinds of lettuce in Davao
City. Projecting the demand and supply from years 2014-2018, both are at an increasing
trend. Combining these, it results to a shortage of supply every year in the 5-year period.
These can be affiliated to the rise of organic market brought by the imminent increasing
consciousness of people towards their physical well-being, which also contributes to the
higher consumption of vegetables such as lettuce especially those which are produced
organically. With such, the increase in supply for lettuce is recommended in order to meet
some of the demand of the consumers. Also, it is more possible for the venture studied to
enter the market as there is a shortage of supply rather than a surplus.
The target markets for the produce are restaurants and other related establishments in
Davao City which serve lettuce in salads or other related recipes. The organic lettuce of
Project Aniwag will be branded as Aniwag which will be perceived as that which is
healthy, environment-friendly, and socially responsible. Moreover, the logo of the farm
will be put into the packaging of the lettuce. The mode of distribution of the produce will
be through delivery made every Monday and Thursday to prospective buyers.The office
personnel will call them beforehand to determine the volume of lettuce to be delivered.
b. Technical Feasibility
The two products to be produced in the organic farm in Brgy. Buda are Iceberg and
Romaine lettuce which are produced in a 60:40 ratio respectively. The product mix is
based on a survey on the demand of restaurants consuming lettuce. Producing organic
lettuce in large volumes fundamentally involves the following crop cycle processes:
seedling production, transplanting, plant care including irrigation, fertilization and pest and
disease management, and harvesting and postharvest. Conversely, site and bed preparation
must be completed before formal operation commences. Major technologies that are
infused in the crop cycle processes are seed sowing in trays, drip irrigation system,
fertigation system and use of foliar fertilizer. The materials and equipment needed for
these technologies are readily available in Davao City through retailers such as Harbest
Agribusiness Corporation, LCDR Irrigation and Water Systems Corporation, and Citi
Hardware. Raw materials needed such as seeds, fertilizers, peat moss and packaging
materials have also various retailers within the City.Utilities such as electricity and water
are accessible in the farm site.
The operation of the business would be managed by a General Manager who shall
also serve as the Treasurer of the cooperative. A Farm Supervisor, who shall reside in the
plantation area, shall also be hired. For the manual labor tasks such as planting, harvesting
and packing, two (2) farmers and a packer shall be contracted. The large number of
unemployed persons in the area and their knowledge on farming makes it easier to find
people to assume such roles. Since there are certain people who already are
knowledgeable and practices organic farming within the City, it would not be impossible to
find people to assume the critical management roles such as the General Manager and
Farm Supervisor. The city government of Davao, in line with its Organic Agriculture
Ordinance of Davao City 2009, also extends support to organic farming industry by
giving trainings to those who are interested in engaging on such venture.
An office personnel shall man the operations in the Davao office situated in DCCCII
Corporate Center. A driver, who shall also serve as a collection officer, will transport the
vegetable products from the farm to various customers. People having such practical skills
could easily be found within the labor force of the City thus it would not be a constraint for
the organization.
c. Financial Feasibility
Under financial feasibility, major assumptions include (1)All sales and purchases are
made in cash, (2) Sales are made evenly throughout the year, (3) All sales are made to
restaurants and other similar establishments, and (4)No grants will be received.
Total project cost is at P982,365.00. Subscribed and paid-up capital of P162,000.00
will be sourced from members, one-fourth of which will be immediately available on
January 2015. P320,000.00 will be sourced out from short-term debt and P550,000.00
from long-term debt.
During the first five years of operations, the cooperative shows strong results on
operations and good financial condition. Payback period is at 2.25 years while return on
investment ranges between 50-75 percent.
d. Socio-economic Feasibility
The establishment of an organic lettuce farm controlled by a cooperative at Barangay
Buda will not just economically benefit the workers it will hire but also the prospective
members of the cooperative through the income that the organic farm operation will
acquire which would eventually be distributed in the form of dividends. This fulfills the
objective of achieving mutual economic success and prosperity between and among its
members, and providing employment and job security to its hired workers.
e. Organization and Management Feasibility
The organizational structure of the organic farm business will follow a cooperative
form led by a 7-member Board of Directors. It will also have a 3-member Election
Committee to create and enforce the electoral rules of the cooperative, an audit committee
to ensure the efficiency of operations, and a secretary. The treasurer role has been fused
with the general manager. The cooperative form is adapted because it enjoys legal benefits
such as tax exemption which is beneficial for the income generation goal for the members
of the organization. The cooperative form also provides more empowerment to members
since they will have equal voting rights regardless of their capital contribution. The
cooperative form does not also entail much cost to organize compared to other forms such
as a corporation which makes it ideal for the financially-constrained potential members.
II. Market Study

A. Product Description
Project Aniwag has two products. They are the following:
1. Iceberg Lettuce
Scientific Name: Lactucasativa
Pale-green leafy vegetable with a crunchy texture
Suitable for salads and burgers
2. Romaine Lettuce
Scientific Name: Lactucasativa
Pale-green leaves on its head and crispy texture
Usually served in salad dressings together with cucumbers onions, nuts, and fruits
Has more nutritional value than Iceberg lettuce
Figure 2.1 Iceberg Lettuce
Figure 2.2 Romaine Lettuce

B. Market Description
Considering that lettuce is relatively expensive compared to other vegetables and is
consumed with other expensive complementary condiments, in the Philippines, individuals
who consume lettuce are those from middle class to upper class families. More avid
consumers for lettuce are those driven to living a healthy life.
Table 2.1 shows the family income of these upper class and middle class families in the
Philippines as based on the Family Income and Expenditure Surveys and the Labor Force
Survey done in 2010 by the National Statistical Coordination Board.
Table 2.1 Family Income per Class in the Philippines
Class
Family Income per Year
Family Income per Month
Upper Class
Php 2,393,126
Php 199,927
Middle Class
Php 443, 208
Php 36, 934
Source: National Statistical Coordination Board

These consumers eat lettuce through two general means. First is through personal
purchases from supermarkets to be eaten with homemade salads, sandwiches, and many
others. Second is through dining in restaurants which serve dishes with lettuce. These
restaurants purchase lettuce in wholesale from three possible sources the farms, lettuce
distributors, and supermarkets.
C. Demand
The government has no current data for the demand of organic lettuce since the City
Agriculturist Office is still on the groundwork of creating a database for organic agricultural
products. Table 2.2 presents the annual estimated demand of lettuce for the past five years.
Due to the constraints in the availability of data, the information that is derived is only the
demand for all kinds of lettuce, whether conventional or organic, for Davao City. Since the
organic farm aims to convert conventional lettuce buyers to organic buyers, the information is
still deemed relevant to the study.
Table 2.2 Demand of Lettuce in Davao City from 2009-2013
Year
Estimated
per day per
capita
consumption
of Lettuce in
gramsc
Percentage
of Class
A/B/C on
Populationb
Davao City
Population
Level
Number
of days
in a
year
2009
1,430,659a
7%
0.095863393
360
2010
1,449,296
9%
0.095110842
360
2011
1,483,906
9%
0.104434648
360
2012
1,519,342
9%
0.108185926
360
2013
1,555,625
9%
0.113877868
360
Level of
Demand
in metric
tons
Conversion to
metric tons
1 ton
1,000,000 grams
1 ton
1,000,000 grams
1 ton
1,000,000 grams
1 ton
1,000,000 grams
1 ton
1,000,000 grams
3.456125203
4.466137916
5.02106692
5.325634029
5.739700791
Sources: National Statistics Office

b
c
Pulse Asia
Food and Nutrition Research Institute
The annual demand is computed by taking into consideration the increase of population
using the exponential growth rate equation which is presented in Appendix 2.1. Since, the
consumption is constrained to the A, B and C market thus the population level is multiplied
by the percentage of the said groups to the general population of Davao. According to Pulse
Asia (2007, April 16) in consultation with Dr. Ana Tabunda, the nationally representative
sample has 7% making up classes A/B/C (sampling error is +/- 3%) and on 2010, the
breakdown became 9% for class ABC.
Another factor would be the level of consumption of lettuce which is derived by
multiplying the ratio of lettuce among the usual green leafy and yellow vegetables produced
in Davao to 51 grams which is the mean per day per capita consumption of green and leafy
yellow vegetables in Southern Mindanao according to FNRI (Batt, 2007).
Looking at the table above, there is an increasing demand for lettuce for the past 5
years with a growth rate of approximately 66%. The increase in demand is primarily brought
by the increase of population in Davao City. Other factors which affect the increase in
demand would be the burgeoning middle class and upper class thus the change of percentage
from 7% to 9% in the ratio of ABC class to the general population as estimated by Pulse Asia.
See Appendix 2.2 for a more detailed explanation of the table above.
Demand Projection
Figure 2.3 Forecasted Demand of Lettuce in the next 5 years

The graph above shows the increasing demand of lettuce for the next five years. From
2014-2018, the demand for lettuce will experience a growth rate of approximately 34% which
would be affected by the further increase of population. Other foreseen factors would be the
continuous rise of the middle class bracket that have the capacity to invest on health-giving
products in the market which usually entails higher costs compared to conventional products.
The rise of organic market brought by the imminent increasing consciousness of people
towards their physical well-being also contributes to the higher consumption of vegetables
such as lettuce especially those which are produced organically.
Limiting our target market to restaurants, a survey (see Appendix 2.3 and 2.4 for the
questionnaire and results, respectively) was conducted to various restaurants in Davao City to
assess the willingness of the restaurant industry to source organic lettuce from the proposed
farm. The proponents used convenience sampling because there is no data available
regarding the population of restaurants that specifically use lettuce and restaurants serving the
Class A,B,C stratification based on income. The survey conducted showed that there is an
existing 224 kg per week level of demand of organic lettuce. The majority of restaurants
composing the existing demand are currently sourcing their lettuce inventory from various
retailers in Bankerohan Public Market which distributes mere conventional lettuce. 60% of
the demanded lettuce by the restaurant respondents is of the Iceberg kind while the remaining
40% are Romaine lettuce. The result of the survey was used to project the sales. Moreover, a
mean growth rate of 7.5% in the demand is computed to serve as the annual growth rate used
for the production. See Appendix 2.5 and 2.6 for the computation.
D. Supply
Table 2.3 Lettuce Production Volume (in metric tons)
2009
Davao Region
5.02
Percentage increase (decrease)

Davao City
4.26
Percentage increase (decrease)
2010
2011
2012
2013
4.84
4.83
5.00
5.25
(3.59)
(0.21)
3.52
5.00
4.25
4.19
4.31
4.48
(0.23)
(1.41)
2.86
3.94
Source: Bureau of Agricultural Statistics

The production data was derived from the Bureau of Agricultural Statistics (BAS). This
was also the source recommended by the City Agriculturist Office (CAO). The limitation of
the source is that it aggregates organic and nonorganic produce. CAO confirmed that distinct
information for organic produce is yet to become available since data gathering stage is still
ongoing.
Table 2.3 depicts the production of lettuce from years 2009-2013 in the Davao Region,
as a whole, and specifically in Davao City. The supply of lettuce in the Davao Region
increased by 4.58% in 2013 from 2009. It is also worthy to take note that the highest
production of lettuce in the historical data provided for the region was in 2013. On the other
hand, the production of lettuce in Davao City accounts for an average of 86% of the whole
production of lettuce in the region. Moreover, the production decreased by .23% from 20092010, decreased by 1.41% from 2010-2011, increased by 2.86% from 2011-2012, and
increased by 3.94% from 2012-2013. In addition, the highest production in Davao City
within the five-year period was in 2013 and the production was stable at the 4-ton mark.
Competitors
The direct competitors identified are Bemwa Farms, Amarelo Farms, and Century
House of Spice Enterprise. The main competitors are identified based on the results of the
survey and on their market reach to the restaurants. Table 2.4 provides the basic information
for these competitors.
Table 2.4 Competitor Information
Location
Bemwa Farms
Barangay DatuSalumay,
Marilog District, Davao City
Amarelo Farms
Bukidnon
Century House of
Spice Enterprises
Magallanes St., Brgy. 2-A

Davao City
Market
Restaurants, Fanima
(Dsitributor), Individual
Buyers
Restaurants, Individual
Buyers
Restaurants and Robinsons
Cybergate
Product
Quality
80% Oganic
100% Organic
---
Supply Projection
Figure 2.4 Forecasted Supply of Lettuce in the next 5 years
Figure 2.4 depicts the projected supply from 2014-2018. As seen in the graph, the
supply of lettuce is increasing for the next five years. From 2014-2018 the supply will
increase by 4.50%. From year to year, there is a 1% increase in production from that of the
previous year which can be attributed to the increasing trend of health-conscious people
which makes suppliers increase their production and/or having new suppliers enter the market.
See Appendix 2.7 for the computation of forecasted supply.
E. Demand-Supply Analysis
Table 2.5 Demand-Supply Gap
Year
Demand
Supply
(Shortage)/Surplus
2014
6. 43
4. 448
(1. 982)
2015
6. 973
4. 498
(2. 475)
2016
7. 516
4. 548
(2. 968)
2017
8. 059
4. 598
(3. 461)
2018
8. 601
4. 648
(3. 953)
Table 2.5 juxtaposes the projected demand and supply for lettuce for the years 20142018. The forecasted data was arrived atusing the computed annual demand level at Table 2.2
and the recorded annual supply level presented on Table 2.3. From the data forecasted, it is
evident that the demand for lettuce exceeds the supply every year. Between Years 2014 and
Year 2018, the shortage of lettuce increased by 99.44%. With such, the increase in supply for
lettuce is recommended in order to meet some of the demand of the consumers. Also, it is
more possible for the venture studied to enter the market as there is a shortage of supply rather
than a surplus.
F. Price Study
Lettuces are high-value temperate vegetables that command higher prices even during
off-season. To analyze the behavior of the price of lettuce, historical information has been
gathered from the Bureau of Agricultural Statistics. The limitations of the source is that it
does not have the historical data for Region XI solely but only countrywide averages, and it
aggregates the organic and non-organic produce into one. Moreover, the historical data on
prices derived from BAS is for Iceberg lettuce only. Individual prices for Iceberg and
Romaine lettuce will be discussed using the prices of the competitors and distributors due to
the limited data available.
From the data below, the average farmgate prices for lettuce increased by 45% from
years 2009-2013. On the other hand, the average wholesale prices decreased by 10% from
2009-2013 but the average prices remain stable at 40 pesos per kilo-mark. This means that
more consumers go directly to the farms to source lettuce and that the wholesale price is
getting competitive driven by forces of supply and demand.
Table 2.6 Farmgate Prices of Lettuce
Prices in PhP
2009
21. 9
2010
18. 36
2011
23. 88
2012
28. 24
2013
31. 77
2012
46. 62
2013
42. 02
Table 2.7 Wholesale Prices of Lettuce
Prices in Php
2009
46. 78
2010
43. 43
2011
49. 55
Source: Bureau of Agricutural Statistics

As seen in Table2.8, the price of lettuce is shifty because of the fluctuations that happen
monthly. The figures in red are considered as outliers and thus were not included in the
computation of the mean. The highest mean for the average monthly wholesale prices from
years 2009-2013 is at months June and September-November. According to Batt (2007), this
is due to the fact that the rainy season in the Philippines according to the Philippine
Atmospheric Geophysical and Astronomical Services Administration (PAG-ASA) is from
June to November and that the cultivation of vegetables are affected especially in areas of
Luzon and some areas which are also in the typhoon belt. This makes Mindanao as the major
supplier of temperate vegetables to Metro Manila during the wet season especially Bukidnon
and Southern Mindanao where rain is more or less distributed throughout the year and is not
within the typhoon belt. The higher prices can be affiliated to the forces of demand and
supply during these months and the transportation of the produce.
Table 2.8 Average Monthly Wholesale Prices of Lettuce (Iceberg)
January
February
March
April
May
June
July
August
September
October
November
December
Data not available
2009
35.73
33.84
54.06
38.05
40.5
45.39
43.56
40.21
38.04
88.72
92.19
33.63
2010
18.33
18.28
26.5
35.37
62.4
71.2
41.79
42.75
33.41
37.06
77.94
52.02
2011
33.26
37.12
33.91
35.87
34.8
46.06
38.49
33.05
59.13
120.49
84.4
43.14
2012
36.97
47.45
60.67
42.22
37.03
46.32
42.65
83.99
60.26
32.34
28.31
35.08
2013
35.34
42.76
33.41
38.52
41.88
57.43
36.38
51.51
57.28
30.12
37.54
Mean
35.33
40.29
41.71
38.006
43.322
53.28
40.574
38.67
48.47
53.85
55.19
40.282

Introspectively, eight establishments that supply and distribute lettuce have been
observed in order to assess the individual prices of Iceberg and Romaine Lettuce. The five
establishments are Bemwa Farms, Abreeza, Gaisano Mall, NCCC Mall, Robinsons Cybergate,
SM Lanang, and Victoria Plaza groceries. Moreover, the Bankerohan drop-off point for
lettuce, the Century House of Spice, is included. These are the main suppliers and distributors
of lettuce in Davao City. The prices, as confirmed with some of these establishments,
fluctuate from time to time but the listed prices in Table 2.9 are the prices during the
observation and interview of the proponents. Data was gathered from Bemwa Farm on
August 19, 2014, Century House of Spice on August 25, 2014, and from the malls
aforementioned on August 28, 2014.
Table 2.9 Price of Competitors and Distributors for the Month of August (in PhP)
Establishment
Century House of
Iceberg
Romaine
100
150
Establishment
Bemwa Farm
Iceberg
Romaine
50
90
Spice
SM Lanang
Gaisano Mall
Dole
385
DVF
103
Eden
103
SM Bonus
100
Sweet Bee
242
320
Fanima
145
No label
100
269
Victoria Plaza
Sweet Bee
135
242
Robinsons Cybergate
Century House of Spice
130
190
Dole
328
Abreeza
Dizon
NCCC
Dole
135
No label
170
Dole
262
No label
135
Sweet Bee
242
Sweet Bee
242
The factors that affect the fluctuation of prices are (1) the conditions in the farms (2)
supply and demand forces and (3) macroeconomic conditions. The heavy amount of rainfall
has a huge propensity to affect the lettuce farm. For one, after having absorbed so much
water, it may turn too mushy to hold the shallow-rooted lettuce into place. Also, too much
water deposited on the lettuce leaves may cause the same to crack. Moreover, the City
Agriculturist Officer Lorna Alderite said that if the temperature were too high lettuces would
tend to taste bitter brought about by premature seeding or what is called bolting. With few
harvests of lettuces, prices tend to go up as the demand from malls, some restaurants, and
individual buyers remain the same but the available lettuces become limited. Moreover, the
attitude of individual farmers (not belonging to big farms) of lettuce can also affect prices. If
they think that the price for lettuces at the end of a harvest season is too low, they will choose
not to plant lettuces and rather plant vegetables that command a higher price or yield a higher
volume of produce. This will make the supply for the next harvest season low and then the
prices will again shoot up. The fluctuation is really affected by the market forces.
Macroeconomic conditions that advocate economic growth and demand for agricultural
commodities can affect the price of lettuce especially the organic type of lettuce. With the
enactment of The Organic Agriculture Act of 2010 (R. A. 10068) which decrees the
promotion, propagation, further development and implementation of organic agriculture in the
Philippines, there could be a potential increase in demand for organic produce.
Price Setting
Table 2.10 Computation of the Prospective Prices of Lettuce (Iceberg)
Month
Mean
Ratio to Base
Iceberg Price for
of the Average
Month
2015
Monthly Wholesale
(Monthly
(August Price x
Prices
Mean/August
Ratio
Mean)
Computed)
Romaine Price
for 2015
(Monthly Price
of Iceberg x 1. 5)
January
35.33
0.913
91.35
137.02
February
40.29
1.042
104.20
156.29
March
41.71
1.079
107.86
161.79
April
38.01
0.983
98.28
147.42
May
43.32
1.120
112.03
168.04
June
53.28
1.378
137.78
206.67
July
40.57
1.049
104.92
157.39
August
38.67
1.000
100.00
150.00
September
48.47
1.253
125.34
188.01
October
53.85
1.393
139.26
208.88
November
55.19
1.427
142.73
214.09
December
40.28
1.042
104.17
156.25
Mean Price
113.99
170.98
Notes:
1. August is set as base month because the real prices asked by the proponents are the prices
during August.
2. Wholesale price for August 2014 as per interview with direct competitor is 100. This is
assumed to be the price for August 2015 and the base price for 2015.
3. Romaine price is assumed to be 1.5x that of Iceberg (See Appendix 2.8 for justification)
Table 2.11 Projected Mean Price per Year

Derived Data
Mean Price for 2015
Projected Mean Price
Iceberg
Romaine
113.99
2016
2017
170.99
2018
2019
Iceberg
118.55
123.30
128.23
133.36
Romaine
177.83
184.94
192.34
200.03
Notes:
1. Increase per year is assumed to be at inflation rate of 4%
The methodology used to derive the prices for lettuce for the years 2015-2019 are
shown in Table 2.10. The monthly mean prices for iceberg lettuce derived from BAS were
used and the wholesale price for August 2014 as per interview with direct competitor is 100.
This is assumed to be the price for August 2015 and the base price for 2015. To come up with
the price for Romaine, ratios for the price of Iceberg and Romaine was used and the median
ratio of 1.5 was chosen. The derivation is shown on Appendix 2.8. Moreover, a 4% inflation
rate per year was assumed to come up with the succeeding prices. It is based on the estimate
inflation range for 2014 of the Bangko Sentral ng Pilipinas which is 3-5%. See Appendix 2.9
for the computation of the projected sales.
G. Marketing Program
Target Market. The target market for the produce of Project Aniwag are restaurants and
other related establishments in Davao City which serve lettuce in salads or other related
recipes.
The customers of these restaurants are those under the middle to high-income earners.
Targeting these restaurants for organic lettuce is supported by a study released on 2014 by
Singapores Eden Strategy Institute on the emerging middle class customers (EMCs)
classified as those with earning or spending of $2 to $20 per day. The study (Figure 2.5)
shows that in the Philippines, 38.40% of surveyed EMCs are most afraid of losing their health.
This points to the interest of the middle class in leading a healthy life. The organic lettuce of
Project Aniwag matches with this healthy outlook.
Figure 2.5 Survey on EMCs

Products.
Organic variants of iceberg lettuce and romaine lettuce will be sold at
wholesale.
Selling Price. Selling price is competitively set at market price for wholesale.
Branding. The organic lettuce of Project Aniwag will be branded as Aniwag. The
Aniwag brand will be perceived as that which is healthy, environment-friendly, and socially
responsible.
Logo. One way of establishing the brand is through a logo which portrays Aniwag
lettuce as fresh, organic, and farmed in Davao.
Figure 2.6 Aniwag Logo

The logo shows the name of the company, the lettuce, and the statement that informs the
consumers that its lettuce is organically-grown. The dominant color, which is green, reflects
the color of nature and of a lettuce. These elements establish the identity of the organic farm.
Packaging. Products will be placed inside a sealed oxo-biodegradable polyethylene
plastic. The packaging of the final product will include a sticker of the logo in order to create
a distinction of Aniwag vegetables from those commercially grown and produce of other
farmers.
Distribution. Delivery of organic products will be made every Monday and Thursday.
It is set on Monday so that it will be after the weekend rush and to evenly space it, Thursday
is the next delivery day. Harvested products will be directly delivered to restaurants and
interested buyers. An office personnel will call the prospective customers beforehand to
determine the volume of lettuce to be delivered.
Unsold lettuce will be sold either in Davao Citys organic vegetable market at Rizal
Park every Friday at 2:00-5:30pm or through the distributors of lettuce to supermarkets in
Bankerohan.
Customer Management
Sales Staff. The farm general manager is the overall personnel who oversees sales
generation.
Under him is the office personnel.
The latter may make proposals to
restaurants, hotels, and other establishments regarding the product, establishing it being
organic. The product being organic is its key strength. The farm manager though must
personally meet with the potential client should the client require it to close the deal.
Davao Office.
An office in DCCCII Bldg. will be open for customer concerns and
potential customer inquiries. Having an office where the customers can call or go to for
complaints and inquiries increases customer satisfaction and security.
Promotion
Proposals to Restaurants, Caterers, and Other Establishments. The general manager and
office personnel will make proposals to restaurants, caterers, and other establishments
through email correspondence and face-to-face meetings. This would include product
presentation and proposed terms and conditions. The former is intended for potential
clients to have a better understanding and knowledge about organic products and the
benefits of choosing them over the commercially available ones in the market. The latter is
intended for them to be able to evaluate the benefits of going organic against the costs it
may entail. Also, this high-touch correspondence with potential customers helps build
customer trust.
Facebook Page. A Facebook page will be established in order to facilitate all the opinions,
queries, suggestions and feedbacks from different customers from different places.
Through this page, pictures of the farm and its organic means will be posted to further
build customer trust and confidence. Also, details and photos of the farms activities in
giving back to the indigent community will be posted to enhance company image. The
page can also use information graphics to increase the awareness of Davaoeos regarding
organic produce and promote healthy living.
DCCCII Assistance. The company will seek assistance from DCCCII to promote the
companys products to its members. DCCII has 300 member firms and businesses in
Davao City. Also, it currently advocates organic products.
Word-of-Mouth.
With the promotion strategies previously mentioned, word-of-mouth
promotion is expected to take place among buyers across Davao City.
III. Technical Feasibility
A. The Products
Iceberg lettuce is the most common type of lettuce in the Philippines. It is significantly
consumed in hotels, restaurants and even in some households as it is a key ingredient in salads
and sandwiches, especially hamburgers.
Iceberg lettuce is crisp in texture and has a mild, watery taste. Its leaves are green on
the outside and whitish in the inside. Although a large portion of its calories come from
sugars, it still is a very good source of Dietary Fiber, Vitamin A, Vitamin C, Vitamin K,
Folate and Manganese, a good source of Thiamin, Vitamin B6, Iron and Potassium, low in
Sodium, and very low in Saturated Fat and Cholesterol as characterized by Nutrition Data.
Figure 3.1 depicts a summary of icebergs nutritional information.
Figure 3.1 Nutritional Information of Iceberg Lettuce

Romaine lettuce is the usual type of lettuce used in Middle Eastern cuisine and in
Caesars salad. It has long and deep green leaves. It is deep in taste and crisp in texture.
Although tedious to prepare, romaine lettuce is more nutritious than iceberg lettuce. As
determined by Nutrition Data, it is very low in Cholesterol, low in Saturated Fat and Sodium,
a very good source of Dietary Fiber, Vitamin A, Vitamin C, Vitamin K, Thiamin, Folate, Iron,
Potassium and Manganese, and a good source of Riboflavin, Vitamin B6, Calcium,
Magnesium, Phosphorus and Copper. A summary of its nutritional information is seen in
Figure 3.2.
Figure 3.2 Nutritional Information of Romaine Lettuce

Additionally, both Iceberg and Romaine lettuce have a shelf life of seven to ten days
when refrigerated.
B. Production Process
Producing organic lettuce in large volumes fundamentally involves the following crop
cycle processes: seedling production, transplanting, plant care including irrigation,
fertilization and pest and disease management, and harvesting and postharvest. Conversely,
site and bed preparation must be completed before formal operation commences.
Site Preparation
Chart 3.1 Site Preparation Process

Before lettuce beds are prepared, the farm land should first undergo plowing and
harrowing. The aforementioned processes should be taken before seedling production so that
the beds may be established in time for transplanting. The machineries needed for plowing
and harrowing are readily available in Buda as these have been granted by the City
Agriculturist Office to the its local government unit. Chart 3.1 above shows the process to be
undergone during site preparation. Estimated labor cost of PhP 13,950.00 and fuel cost of
PhP 1,296.00 for site preparation will be included in the Cooperative Development Cost of
the entity.
Figure 3.3 Bed Layout

Figure 3.3 depicts the layout of the lettuce beds. Each bed should be raised up by 30
centimeters and have a width of 1 meter and length of 18 meters. Given such dimensions, one
bed can have three rows and sixty columns, thereby allowing for 180 lettuce heads per bed,
each taking up a 30x30 centimeter square. One meter wide working paths should also be
allotted in between beds. Following the layout presented in Figure 3.12, a total of 76 beds
will be established in the farm.
Once established, each bed should be mulched with
mulching film to aid in weed management and in retaining
soil moisture come post-transplant. In preparation for
transplanting, the mulching film should be hollowed, centered
and distanced accordingly, by pressing a heated can over the
area where a seedling will be transplanted.
Bed preparation will only be done during the
establishment of the farm as the beds may be used in the next
Figure 3.4 Mulching
production cycle. The beds should always be maintained.
Seedling Production
Seedling trays are first filled with peat moss and then
watered for it to lightly press, allowing a space of 5mm for
sowing seeds. Each hole should be carefully sown with
one seed and then gently covered with peat moss. After
each hole is sown and covered, the tray should then be
Figure 3.5 Sowing in Trays

lightly sprinkled with water. Filled seedling trays should

be rested on nursery benches with make-shift sheds for
partial shading. The lettuce sprouts should be ready for
transplant after 2 weeks. In such span of time, the trays
should be sprinkled with water daily. Watering the trays
should be very controlled to keep the sprouts from
drowning. To harden the sprouts in preparation for
transplanting, the trays should be exposed to full sunlight
for one hour three days before transplanting; three hours
Figure 3.6 Trays on

Nursery Benches
the next day, and five hours the day before transplant.
Transplanting
When the sprouts are ready for transplant, the
seedlings are removed from the tray and carefully
transported to the beds and transplanted in the hollow on
the beds previously prepared. Seedlings are removed from
the tray by pushing its body from the tiny bottom hole of
Figure 3.7 Transplanting
the tray. The plants should be watered thereafter.
Plant Care
A Drip Irrigation System shall be installed in the
plant site for the irrigation and fertilization of the plants.
Beds are to be watered 3 minutes every hour for
irrigation.
Figure 3.8 Drip

Irrigation System
For fertilization, fertigation system, the integration

of small amounts of liquid or dissolved fertilizer in the
irrigation system, will be adopted. Foliar fertilizer shall be
used for the fertigation. The amount and frequency of its
application will depend on the recommendation given by
the Bureau of Soil from the soil analysis of the farm area.
Figure 3.9 Foliar Fertilizer

According to Davao City Agriculturist Lorna
Alderite, the application of the plastic mulch and the
fertigation system will greatly combat and may be enough
to manage pest and disease infestation. Regardless, the
farmers should regularly check on the plants. When pests
are discovered, the farmer should look into the plants
being infested and the specific pests infesting it to
determine the appropriate means that would exterminate
the root cause of infestation. Flowering plants such as
Marigold and Lemon Grass should also be planted in the
Figure 3.10 Irrigation

Illustration
surroundings to serve as repellants.

Harvesting and Postharvest
The lettuce should be ready for harvest 45 days from transplanting. Harvesting should
be done during mid-afternoon when the weather is cool. To harvest, the lettuce plant should
be wholly uprooted, its roots then immediately cut before placing the crop inside the plastic
crates during the harvesting process. Once done, the crops should be brought to the farm
building for packaging. Part of this process is the cutting of unnecessary or excess leaves of
the lettuce. Thereafter, the crops should be stacked in crates and ready for delivery to the
client restaurants early morning the following day. After harvesting, the lettuce beds which
were previously used may now be transplanted with seedlings and the crop cycle begins once
again. Chart 3.2 shows a summary of the crop cycle.
14days
1day
45 days
1day
Chart 3.2 Lettuce Crop Cycle
C. Farm Size and Production Schedule

The farm is square in shape and has a total land area of 5,000 square meters (80x62.5m2)
or 0.5 hectares; 3,116 square meters (76x41m2) of which cover the actual farm area. The land
area utilized for the lettuce plants is 1,368 square meters - a summation of the farms 76
lettuce beds, each having a dimension a of 1 meter by 18 meters and the capacity to produce
180 lettuce heads or 30 kilograms of lettuce. The rest of the actual farm area which comprise
1,748 square meters serve as walking paths in between beds.
The production schedule is designed in a way that the entity may safely deliver 114
kilograms of organic lettuce twice a week on the first year. In such a case, the farm will
operate every day to meet its bi-weekly delivery target. Holding the assumption that 5%
(maximum possible defect rate as estimated by the City Agriculturist Office) of the yield is
defective, four lettuce beds which can yield 120 kilograms will be utilized every crop cycle.
A five-year monthly production schedule with its corresponding yield is presented in
Appendix 3.1. The production level is assumed to increase by 7.5% every year. Such
increase will cause the following changes in the farms utilization and production volume:
Table 3.1 Farm Utilization Rate

Year of
Production per
Beds Utilized per
Maximum Beds
Operation
Crop Cycle (kg)
Crop Cycle
Used per Period
2015
120.00
56.0
74%
2016
129.00
4.3
60.2
79%
2017
138.68
4.62
64.7
85%
2018
149.08
4.97
69.6
92%
2019
160.26
5.34
74.8
98%
Utilization Rate
The utilization rate is calculated by dividing the maximum beds used per period by 76,
the total number of beds the farm has. The maximum number of beds used per period is
computed by multiplying the beds utilized per crop cycle by 14. Such number is used since
based on an analysis made on the production schedule, in a year, at most 14 crop cycles will
occur at the same time.
Table 3.2 Estimated Yearly Production Volume

Year of Operation
Iceberg Yield (kg)
Romaine Yield (kg)
Total Yield (kg)
2015
5,688.00
3,792.00
9,480.00
2016
8,049.60
5,366.40
13,416.00
2017
8,653.32
5,768.88
14,422.20
2018
9,391.76
6,261.18
15,652.94
9,999.99
6,666.66
2019
16,666.65
The significant difference between the 2015 yield and 2016 yield is by the reason that
the first harvest on the first year of operations is on April; thereby causing a 3-month yield
difference.
D. Machinery and Equipment

The following are the machineries and pieces of equipment needed in the farming and
office operations of the entity:
Table 3.3 List of Machinery and Equipment for the Farm
Prospect
Machinery or Equipment
Specifications
Vendor
Cost
Qty
Total
Cost
50.00
38
1,900.00
Harbest
128 holes
Agribusiness
Corporation
Tray Dimensions:
530mm x 275mm
Seedling Tray
Hole Volume:
350 x 150 x 40mm
Magallanes St.,
Davao City
Bench Dimensions:
24x60x30 inches
Shaded by unused
tarpaulin
To be made by a
laborer from the
500.00
4,000.00
865.00
865.00
118,358.10
118,358.10
5,000.00
16
80,000.00
50.00
836
41,800.00
2,890.00
11,560.00
area
Make-shift Nursery Bench

With UV Protection
& Anti-twist
Size: 25m
Diameter: 1/2"
Citi Hardware
Matina, Davao
City
Medium Duty Garden Hose

LCDR Irrigation
and Water
100Mx100M Drip
Systems
Irrigation Model
Corporation
(See Appendix 3.2)

Lanang, Davao
Drip Irrigation System
City
Harbest
UV-treated
Agribusiness
Corporation
2.70m x 0.055mm x
Clear PE tunnelling film for
100 m per roll
Rain Shelter
Magallanes St.,
Davao City
Metal Works
Steep Pipe for Rain Shelter
Width: 1.4 m
Contractor from
Height: 1.4 m
R. Castillo, Davao
Diameter 3 cm
City
Made in Taiwan
Harbest
High quality PE resin
Agribusiness
UV-treated
Corporation
1.50m x 0.03mm x
Magallanes St.,
Plastic Mulch
400m
Davao City
Nestable/Stackable
With open handle on
short sides
Manly Plastics,
Inc.
Perforated bottom
300.00
20
6,000.00
200,000.00
200,000.00
680.00
680.00
150.00
450.00
Outside:
685x355x355 mm
Plastic Crates
Inside:
Lasang, Davao
City
615x315x343mm
4x4
12 Valve Gasoline
Engine
660 cc
Lanang, Davao
City
3 Cylinder
Karborador
Manual
SecondhandMulticab
500 g-12 kg Capacity
Graduation:50 g
Min/Max error
tolerance
DCLA, Davao
25/75 g
City
G.W : 2.5 kg
Weighing Scale
Dimensions
280x240x280 mm
Wooden
DCLA, Davao
Dimensions:
City
38x28x1.8 cm
Chopping Board
Stainless Steel
DCLA, Davao
70.00
210.00
65.00
195.00
250.00
750.00
255.00
765.00
550.00
2,200.00
City
8 inches
Chopping Knife
Stainless Steel
DCLA, Davao
City
8 inches
Kitchen Knife
Stainless Steel
ACE Hardware,
Opener and
Davao City
Vegetable
Cutter
Kitchen Shear Scissors
DCLA, Davao
Rubber
City
Rain Boots
Oval Table
Uyanguren,
36 x 63
Davao City
Monobloc Table
28 height
Size: 506mm x
Uyanguren,
435mm x 775mm
Davao City
160.00
10
1,600.00
400.00
400.00
2,160.00
4,320.00
Monobloc Chairs
E27 base. Cold white
LEDs. Clear glass. 8
Citi Hardware
LEDs. 120 lens
LED Lights Bulb
beam angle. 310 10
Matina, Davao
Lm. 185-265VAC. 8
City
0.5W.
Part#: 72-HL-3-R
Citi Hardware
Red LEDs.
3 LEDs.
Matina, Davao
60 lens beam angle.
City
LED Garden Lights
5-28V DC. 3W.
Table 3.4 List of Machinery and Equipment for the Davao Office
Machinery or Equipment
Specifications
Dimensions:
115.5cm x 57cm x
72cm
Prospect
Vendor
Total
Cost
Qty
2,000.00
2,000.00
1,000.00
1,000.00
200.00
400.00
24,211.00
24,211.00
Cost
Progress Home
and Office
Furnishings,
Davao City
Office Table
Material:Fabric
Progress Home
Style: Lift
and Office
Chair,Swivel Chair
Furnishings,
Size: 50x50x86cm
Davao City
Office Chair
12 Digit With Bill
3 Years Manufacturer
warranty
Type: Basic
Calculator
Acer Aspire ZC606

Computer Package
GH Office Depot,
Davao City
Source: Battery
OS: Microsoft
Windows 8.1 SL
Intel Celeron J1900
Quad Core Processor
2.42 Ghz, 2MB Cachel
Display: 19.5" HD+
LED-Backlit TFT LCD
1600 x 900 Reso
Intel HD Graphics
Memory: 4GB DDR3
HDD: 1TB
Wireless Network:
802.11b/g/n
Gigabit Ethernet
Bluetooth 4.0
Ports: SD Card
reader, USB 2.0, USB
3.0
EMCOR
J.P. Laurel Ave.,

Davao City
E. Farm Location
The organic lettuce farm is located in Purok 11 Barangay Buda, Marilog District, Davao
City. It is an ancestral domain under the custody of Mr. Daniel Baang.
The path to the farm area is 1.5 kilometers uphill from the main road. Its road is
supposedly accessible by a 4x4 vehicle. However, it currently needs repair as it is heavily
eroded.
The farm is filled with grass and surrounded by trees that were planted by the
Department of Environment and Natural Resources (DENR). No crop has ever been planted
on it yet.
The areas technical description, as surveyed and prepared by DENR, is presented in
Appendix 3.3.
Figure 3.11 Farm Location

F. Farm Layout
Figure 3.12 General Farm Layout
The farm is fully surrounded by flowering plants such as Marigold and Lemon Grass.
Its entrance is five meters wide. It also has a 4-car parking capacity.
G. Building and Facilities

Farm Building
Figure 3.13 Farm Building Floor Plan

The farm building is primarily intended as the packing center for harvested lettuce. At
the same time, it serves as a multi-purpose center for the farm workers. The building also
houses an office space for clerical work and documents storage. Additional details and
costing of the farm building may be seen in Appendix 3.4.
Supervisors Quarter
A supervisors quarters will be put up in the farm area in
consideration of the farm supervisors responsibilities in the farming
operations. It shall be a simple yet livable 8-squaremeter payagpayag wherein the supervisor may lodge. Fifteen thousand pesos
shall be allotted for its establishment.
Figure 3.14
Supervisors Quarters
Comfort Room
For sanitary purposes, a comfort room will also be put up
in the farm area. This is a special type of facility that may use
urine for fertilization. More details on this will be discussed in
the Waste Disposal portion of this paper. Its technical drawings
Figure 3.15
Comfort Room
and costing may be seen in Appendix 3.5.
H. Raw Materials and Supplies

The following are the raw materials and supplies needed in the operations of the entity:
Table 3.5 List of Raw Materials and Supplies
Raw Material or
Supply
Peat Moss
Iceberg Seeds
Remarks
Prospect
Vendor
This shall serve as the soil medium for

Harbest
growing seedlings in trays. One bag has
Agribusiness
a volume of 20L and will fill
Corporation
approximately three trays.
Harbest
One 100-gram pack contains
Agribusiness
approximately 100,000 seeds
Corporation
Romaine Seeds
One 100-gram pack contains

approximately 100,000 seeds
Foliar Fertilizer
Fertilizer used for the fertigation system

One liter of foliar may dilute 200 L
water.
Oxobiodegradableplastic
bags
Used for packaging

One plastic bag per kilo
Logo Stickers on
Packaging
Used for packaging

One sticker per plastic bag
Bankerohan
City
Agriculture
Office
Davao
Packaging
Corporation
Davao
Packaging
Corporation
Cost (in
PhP)
150.00 per
bag
1,470.00
per 100g
pack
1,900.00
per 100g
pack
1,800/Liter
1.00 per
piece
2.00 per
sticker
I. Utilities
Electricity
The electricity in Brgy. Buda is supplied by the First Bukidnon Electric Company
(FIBECO). The rate per kilowatt-hour charged by the company as of July 2014 is PhP
9.9344/kwh. Currently, the proposed farm site has no electrical connection but, the custodian,
Mr. Daniel Baang, has communicated his desire to apply for a connection to the farm site,
which he hopes to materialize by 2015. The installation cost varies according to the distance
of the post from the site. Mr. Baang approximates the installation fee at a minimum cost of
PhP 7,000.00. (See Appendix 3.6 on how to apply for FIBECOs electric service).
For the farming operations, electricity will only be needed for the irrigation system and
lighting. The 5 HP pump for irrigation will be used for three minutes every hour only. Farm
building lights will only be turned on when needed, usually every after three or four days
when product packaging is done. LED garden lights will also be turned on for presumably
seven hours per night only. Thus, electricity charge for the farm is estimated at a minimal
cost of PhP 500.00. Additionally, there will be no electricity charges in the Davao City
Chamber of Commerce and Industry, Inc. (DCCCII) Corporate Office since electricity is
inclusive in the monthly rental payment.
Water
The water supply in the area is mainly sourced from spring water and the water pump
that the entity shall install. Specifically on the farm site, the owner has set up a water hose
which is connected to a spring and is propelled towards the higher ground through natural
pressure. There are also reservoirs in the area whose owners usually charge PhP 50.00 per
gallon. The water cost of the DCCCII office is already inclusive in its monthly office rent.
Fuel
The nearest fuel station from Brgy. Buda is the Phoenix Gasoline Station located near
the Seagull Mountain Resort. There are also small retailers of fuel contained in 1-liter soda
bottles that usually range from 60 to 65 pesos a liter. Their price range has a little markup
compared to the rates within urban Davao. Thus, the entity will have its vehicle refueled in
Davao City which has an approximate gasoline cost of PhP 54.00 per liter.
Telecommunication
There are numerous choices of telecommunications service providers present in Davao
City: PLDT, Globe, Bayantel and Sky Internet for telephone and internet connection; and,
Globe, Smart and Sun Cellular for mobile phones. The usual mode of communication
between Brgy. Buda and urban Davao City is through mobile phone since it is the most
convenient and economical means. The signal strength of cellular phones in Brgy. Buda
varies among different service providers. Globe and Smart usually have an average signal
strength since these companies have their own communication towers in the area.
The landline and internet connection for the DCCCII office is inclusive in the rental fee.
However, an additional PhP 1,000.00 shall be paid monthly for the application of a local
number in the office.
J. Waste Disposal
The waste disposal mechanism to be applied in the organic farm covers two types of
waste which are consequential in the farm operation namely: the human excreta coming
mainly from the farmers working in the farm site and the rotten or commercially-unacceptable
crops unfit for human consumption.
In congruence to the advice given by the Sustainable Sanitation (SuSan) Center of
Xavier University, the prime advocate of sustainable sanitation for communities in Mindanao,
the proposed organic farm will feature a urine diverting (UD)-arborloo toilet or literally
known as the "tree toilet" which would complement the farm's operation especially in terms
of soil fertilization or conditioning. The UD-arborloo toilet supports the usual defecation
practices by Filipinos using the conventional toilet system. Observing most Filipinos as
"washers" (those who use water for cleaning the anus), the UD-arborloo toilet does not
demand a significant change in terms of defecation behavior since it provides a washing area
for washer users. In contrast to other UD toilet systems, the arborloo does not require
exhaustive maintenance brought by the regular collection and storage of feces since it is
directed underneath the ground.
UD-arborloo
The UD-arborloo toilet features a urine diverting toilet bowl which is designed to
segregate human feces from urine. The toilet bowl contains two separate holes:
1. a smaller one is situated on the front portion which is intended for urinating and
2. a larger hole on the back portion which is intended for defecation.
The human feces is directed towards a pit with at least 1 meter of depth, but not reaching
the watertable beneath the ground, and is covered with ash or soil after use to hasten the
drying process and avoid the spread of stench. When the pit is nearly filled up, other
biodegradable matters such as rotten vegetables and more soil are dumped inside until the pit
is covered. The nutrient-rich covered pit would then be an ideal planting area for fruitbearing trees which could be a source of food or income of the community. The urine, on the
other hand, is directed to a container situated outside the arborloo superstructure. When the
container is filled, the urine would be transferred to a separate container in order to be stored
at least for one month. This waiting period is necessary in order to lessen the possible health
risks of using the urine for agricultural purposes according to World Health Organization.
After which, the nitrogen-rich stored urine could be used as a liquid fertilizer which could
help in boosting plant growth. Every time that a pit latrine is filled up, a new location would
be identified where a new pit would be dug upon which the detachable arborloo
superstructure would be relocated.
Figure 3.16 Schematic of Arborloo Toilet by SuSan Center of Xavier University

Vermicomposting
The rotten or commercially rotten crops unfit for human consumption would be routed
to a vermicomposting area within the organic farm vicinity. The use of vermicomposting
technology will complement with the organic nature of the farm especially in terms of
sustainability. Aside from reducing the waste of rotten vegetables, vermicomposting also
lessens the dependence of commercial organic fertilizer.
The type of earthworm which the organic farm ought to use is the African Nightcrawler
(Eudriluseuginae). This specie of earthworm is considered as the most efficient in composting
on tropical conditions (Guerrero 2009). It is also the one used by farmers of Prolife Farming
and Livelihood Association in Matalam, North Cotabato which considers vermicomposting
industry as one of the main sources of their livelihood.
The compost pit will be established during Site Preparation phase. Its estimated labor
cost of PhP 1,350.00 will be included in the Cooperative Development Cost of the entity.
K. Product Cost
One product shall refer to one kilo of lettuce. Only the costs classified as Direct
Materials are variable. The rest, all classified as fixed costs, are allocated by dividing
estimated monthly costs by the average monthly production for the year. The average monthly
production for 2015 is 1053.33 kilograms. Below is the product costing for year 2015:
Iceberg
Romaine
0.09
2.34
1.00
2.00
5.43
0.11
2.34
1.00
2.00
5.46
15.33
9.13
1.09
4.57
0.54
15.33
Estimated
Monthly Cost
for 2015
Direct Materials
Seeds
Peat Moss
Plastic Bag
Logo Sticker
Direct Labor
Farmer Salary
Farmer - SSS, Philhealth, Pag-IBIG Cont.
Farm Packer Salary
Farm Packer - SSS, Philhealth, Pag-IBIG Cont.
Overhead Costs
Foliar Fertilizer
Depreciation Seedling Trays
Depreciation Nursery Benches
Depreciation Garden Hose
Depreciation Drip Irrigation System
Depreciation Rain Shelter Tunneling film
Depreciation Rain Shelter Pipes
Depreciation Mulching film
Depreciation - Farm Building
Depreciation Comfort Room
Depreciation - Supervisor's Headquarters
Depreciation - LED Lights
Depreciation - Crates
Depreciation - Other Tools
Depreciation - Table
Depreciation - Chair
Farm Supervisor Salary
Farm Supervisor - Employee Benefits
Farm Supervisor - SSS, Philhealth, Pag-IBIG Cont.
Land Rental
Repairs and Maintenance
Power, Light and Water
Estimated Cost per Kilo
9,620.00
1,143.80
4,810.00
571.90
9.13
1.09
4.57
0.54
31.67
66.67
14.42
493.16
666.67
348.33
192.67
778.94
657.20
250.00
196.67
100.00
127.08
91.67
66.67
7,150.00
638.18
725.70
1,500.00
1,000.00
500.00
0.03
0.06
0.01
0.47
0.63
0.33
0.18
0.74
0.62
0.24
0.19
0.09
0.12
0.09
0.06
6.79
0.61
0.69
1.42
0.95
0.47
14.81
35.57
0.03
0.06
0.01
0.47
0.63
0.33
0.18
0.74
0.62
0.24
0.19
0.09
0.12
0.09
0.06
6.79
0.61
0.69
1.42
0.95
0.47
14.81
35.59
L. Labor Requirements
The following table discusses labor requirement in detail:
Table 3.6 Labor Requirements
Job Title
Work
Classification
General Manager
Administrative
Farm Supervisor
Indirect Labor
Driver/Collection
Officer
Administrative
Office Personnel
Administrative
Accountant
Administrative
Contractual
Farmer (2)
Contractual
Packer(1)
Direct Labor
Direct Labor
Estimated Salary
or Wage (PhP)
Job Description
Oversee the operations of the
farm, from purchasing to farming
to cash collection, including
promotion activities; Serve as
treasurer
Oversee the farming process;
Employ contractual farmers as
needed, and purchases raw
materials.
Deliver products to customers and
collect payment(in check); will
serve as messenger; Do other
tasks assigned
Handle customer complaints and
supplier concerns; in-charge of
sales generation and advertising;
Organize and maintain files for
accounting and control purposes
Record inventory, accounts
receivable, etc.; Produce financial
statements
Plant, check for weeds, and
harvest
Cut lettuce and pack
10,140 per month
7,150 per month
6,240 per month
8,242 per month
3,000 per month

180 per day
180 per day
All employees will receive SSS, Philhealth and Pag-IBIG benefits.
IV. Financial Feasibility

A. Major Assumptions
All sales and purchases are made in cash.
Sales are made evenly throughout the year.
Inflation rate per year is 4%.
Price per kilo of the Cooperatives organic lettuce increases per year at inflation rate.
Quantity of lettuce produced and sold increases by 7.5% per year based on projected
sales in the market study.
Site preparation is included under Cooperative Development Cost.
Funds needed for purchase of property, plant and equipment which cannot be financed
by paid-up equity on January 2015 and membership fees received will be financed with
5-year debt.
Long-term debt is sourced from Development Bank of the Philippines with an interest
of 10%
Short-term debt is sourced from Landbank of the Philippines with an interest of 15%.
Funds needed for operations from January to March 2015 with a contingency fund of
P45,000 will be financed with short term debt.
Cooperative Development Cost is amortized for three years.
Rent is accrued and paid at the end of each month.
Insurance and vehicle registration fee on the transportation equipment remain constant
for the five years.
Assets are depreciated using the straight-line method with no salvage value.
SSS/ECC/Philhealth employee and employer share on contributions remain constant for

the five years.
Withholding taxes on wages remain constant for the five years for simplicity purposes
in spite of a 4% increase in salary per year.
Interest on short-term borrowing is accrued and paid every month.
Interest on long-term borrowing is paid at year end.
Lessors and outsourced bookkeeping and auditing firm are non-vat registered.
Annual gross income exceeds P720,000 for the accounting and auditing firm.
Equal working days of 26 are assumed per month. Implications of holiday pays are
ignored.
Salaries and Wages, Employee Benefits(13th month pay),Periodicals, Magazines &
Subscription, Communication, Gas, Oil and Lubricants, Power, Light, and Water, Foliar,
peat moss and Rentals Land and Office increase per year at inflation rate.
Only land rental and cost of seeds and peat moss are capitalized as biological asset for
January 2015 as other costs incurred are immaterial.
Costs of seeds remain constant for the 5 years.
Repairs and Maintenance increase at 5% per year.
Repairs and Maintenance is incurred evenly throughout the year.
All members of the cooperative are initiated on January 2015.
Peat moss, foliar, plastic bags, and stickers are used on the same month they are
purchased.
No grants will be received.
Fully depreciated property, plant and equipment (PPE) are retired when fully
depreciated. The same kind of PPE retired are purchased at the same cost at the same
time it fully depreciates.
Coop. Education & Training Fund and Community Development Fund are utilized the
following year they are accumulated.
Contract on operating lease for land is good for five years. Fixed rent is P1,500 per
month.
Interest on Share Capital Payable is paid in cash the following year it was allocated.
Petty Cash Fund and Payroll Fund is replenished every month end.
B. Chart of Accounts
The following are the accounts used in the financial statements of Aniwag Cooperative:
Chart 4.1 Chart of Accounts
Account Title
Statement of Financial Condition
Current Assets
Cash and Cash Equivalents
Check & Other Cash Items
Cash in Bank
Payroll Fund
Petty Cash Fund
Definition
This account represents undeposited customer

checks.
This account refers to money deposited in the bank
under the name of the cooperative.
This account represents the currency and coins set
aside for the payment of wages of farmers and
packers. This is under the custody of the farm
manager.
This account refers to a limited amount of money
under the custody of the Office Personnel meant for
minor expenditures such as office supplies and the
Farm Supervisor meant for minor farm-related
expenses.
Inventories
Raw Materials Inventory
Biological Assets
Other Current Assets

Subscription Receivable
Prepaid Expenses
Non-current Assets
Property, Plant and Equipment
Building on Leased/Usufruct Land
Accumulated Depreciation Building on

Leased/Usufruct Land
Machineries, Tools, and Equipment
(MTE)
Accumulated Depreciation - MTE
Furniture, Fixtures and Equipment (FFE)
Accumulated Depreciation - FFE
Transportation Equipment
Accumulated Depreciation
Nursery/Greenhouses
This account represents cost of seeds on hand

This account refers to the cost of lettuce on trays
and on the ground that are intended for sale;
measured at cost.
This account refers to the unpaid balance of
subscribed share capital.
This account refers to payments in advance,
particularly on vehicle registration fee and
insurance.
This account refers to the cost of the farm building

and supervisors quarters including the farm
comfort room.
This account refers to the total amount of
depreciation accumulated on Building on
Leased/Usufruct Land based on cost.
This account refers to the cost of machineries, tools
and equipment used in farming and harvesting.
depreciation accumulated on Machineries, Tools,
and Equipment based on cost.
This account refers to the cost of movable and
immovable properties for office use and farm use
such as but not limited to tables, chairs, and
computers.
depreciation accumulated on Furniture, Fixtures,
and Equipment based on cost.
This account refers to the cost of the Cooperatives
delivery vehicle.
depreciation accumulated on Transportation
Equipment based on cost.
This account refers to the cost of nursery and other
equipment used for seedling production and
Accumulated Depreciation
Nursery/Greenhouses
Other Non-current Assets
Cooperative Development Cost
Current Liabilities
Loans Payable Current
Accrued Expense
SSS/ECC/Philhealth/ Pag-IBIG Premium

Contributions Payable
Withholding Tax Payable
Interest on Share Capital Payable
Non-current Liabilities
Loans Payable
Members' Equity
Subscribed Share Capital Common
Paid-up Share Capital Common
Undivided Net Surplus/(Net Loss)
growing of lettuce.
depreciation accumulated on Nursery/Greenhouses
based on cost.
This account refers to expenses incurred prior to the
actual operations of the cooperative, subject to
amortization of three years.
This account refers to the indebtedness to financial
institutions payable within one year from the end of
the accounting period.
This account refers to expenses such as Employee
Benefits, Interest Expense and Power, Light, and
Water accrued at month and year-end.
This account refers to amounts withheld from the
compensation of employees representing their
premium contributions to SSS, Philhealth and PagIBIG and the corresponding share of the
cooperative as employer.
This account refers to taxes withheld from
employees compensation, professional fees, and
rentals.
This account refers to liability to members for
interest on share capital. For Aniwag Cooperative,
this is at 70% of the years net surplus.
The account refers to indebtedness of the
cooperative to financial institutions payable beyond
one year from the end of the accounting period.
This account refers to unpaid but subscribed share

capital.
This account refers to paid Subscribed Share
Capital-common.
This account refers to the accumulated net
surplus/(net loss) of the cooperative at the end of
each interim period.
Statutory Funds
Reserve Fund
Coop. Education & Training Fund
Community Development Fund
Optional Fund
Statement of Operations
Sales
Cost of Goods Sold
Other Income
Membership Fees
Selling and Administrative Costs

Salaries & Wages
Employee Benefits
Professional Fees
Advertising and Promotion
This account refers to the amount set aside annually

for the stability of the cooperative equivalent to
10% of net surplus.
This account refers to the amount retained by the
cooperative for education and training of its
members, officers, and employees. The amount
retained is 10% of annual net surplus.
This account refers to the fund set aside from the
net surplus for projects and/or activities that will
benefit Brgy. Buda. The amount set aside is 3% of
annual net surplus
This account refers to fund set aside from the net
surplus for purposes which the Board of Directors
may see fit such as acquisition of additional land or
equipment, for members' benefit, etc.. The amount
set aside is 7% of annual net surplus.
This account refers to the amount received from

customers for lettuce sold.
This account refers to the total cost of lettuce sold
which includes cost of biological harvested and
harvest and packaging cost.
membership fees received from both associate and
senior members of the cooperative.
This account refers to the amount incurred for
services rendered by employees involved in
administrative and selling activities.
This account refers to the 13th month pay given to
regular employees.
This account refers to the amount incurred for
outsourced accounting and auditing services.
This account refers to expenses incurred for
advertising and promotion of Aniwags produce.
Periodicals, Magazines & Subscription
Representation
Office Supplies
Communication
Meetings and Conferences
Gas, Oil, and Lubricants

Depreciation
Insurance
Vehicle Registration Fee
Rentals
Officers' Honorarium and Allowances
Miscellaneous Expense
Amortization for Cooperative

Development Cost
Finance Costs
Interest Expense on Borrowings
This account refers to amount incurred for

subscription or purchase of periodicals, magazines,
and others.
This account refers to amount incurred related to
accommodating customers and guests on official
business.
This account refers to expenses incurred for office
and various supplies.
This account refers to amount incurred for
telephone and cellular load expenses.
This account refers to amount incurred for the
conduct of the members general assembly and
quarterly meetings.
This account refers to amounts incurred for gasoline
used by the delivery vehicle.
This account refers to expenses incurred in the
repair and maintenance of equipment not directly
used in farming, harvesting, and packing.
This account refers to amount provided for wear
and tear of furniture, machineries and equipment
not directly used in farming, harvesting, and
packing activities.
This account refers to expenses incurred to insure
the transportation equipment.
This account refers to expenses incurred for the
annual registration of the transportation equipment.
This account refers to amount incurred for the lease
of office space.
This account refers to amount incurred for services
rendered by directors.
This account refers to all other expenses incurred
by the cooperative not classified under any of the
specified expenses account.
This account refers to amount provided for the
amortization of the cooperative development cost.
This account refers to interest incurred on both
short-term and long-term indebtedness.
C. Total Project Cost

The total project cost is P982,365 computed as follows:
Property, Plant and Equipment (PPE)
Nursery/Greenhouses
Furniture, Fixtures, and Equipment
Cooperative Development Costs
Estimated Operating Costs from January to March
Salaries and Wages
Farm Manager
33,335
Farm Supervisor
15,751
Farmers
21,528
Professional Fees
Representation
Office Supplies
Communication
Rentals
Raw Materials Purchases
Other Farm Expenses
Total
Contingency Fund
Total Project Cost
200,000
158,641
258,483
9,050
36,131
662,305
43,696
70,614
9,000
75,000
450
6,000
1,500
6,600
25,500
10,500
1,200
15,000
10,000
231,364
937,365
45,000
982,365
D. Initial Working Capital Requirements

a. Inventory Management
Aniwag Cooperative will not carry agricultural inventory produce for a long time.
One reason is that once harvested, the products are immediately delivered the following
day. Unsold products through delivery will be sold through either distributors in
Bankerohan or through the Friday market. Unsold products after the secondary means of
distribution will be considered as loss and will not be carried as inventory. These unsold
products have a very short shelf life of at most one week after harvest. These will be used
in vermicomposting. Because of this possible scenario, it is at the best interest of the
cooperative to maintain this loss due to unsold produce in an acceptable level.
Normal decay, loss, and spoilage cost is embedded in the cost of goods sold.
Abnormal decay, loss, and spoilage will be treated as selling and administrative expense as
prescribed by Cooperative Development Authoritys chart of accounts.
The Cooperative will carry raw materials inventory in its accounts. This
comprises of Iceberg and Romaine seeds. 50-gram packs of seeds per kind will be
purchased at one time. This purchase is done about once a year. Carrying these seeds for a
year requires proper storage and keeping.
Other raw materials will be purchased just-in-time. For Aniwag Cooperative,
these raw materials will be used on the same month they are purchased.
b. Cash Management
Managing cash in todays environment has become ever more difficult. Since
cash is the most liquid of all assets, proper care and caution must be made in handling them.
To address this issue, Project Aniwag maintains three accounts for cash namely, payroll
fund, checks and other items, petty cash and cash in bank.
The checks and other items account represents undeposited customer checks.
This is under the custody of the farm manager.
The payroll fund, to be accounted for using the imprest fund system, represents
the currency and coins set aside for the payment of wages of farmers and packers. This is
under the custody of the farm manager.
On the other hand, the cash in bank account represents check payments from
customers and buyers deposited in the bank. Purchases of property, plant, and equipment
and raw materials, payment for land rental and other selling and administrative expenses,
and replenishment of petty cash fund will be made through checks drawn from the cash in
bank.
Cash will be deposited in a bank up to P500,000 which is the amount insured by the
Philippine Deposit Insurance Corporation(PDIC) per depositor. Amount exceeding it shall
be deposited in another bank.
Payments from buyers and customers will be collected by the driver upon delivery of
the goods. The check must be in such a way that the payees name should be addressed
under the companys name to prevent embezzlement of company funds in case of sabotage.
After collection, the checks are remitted to the farm manager. He then prepares the deposit
slip. Check deposits are made once a week. Monthly bank reconciliation will be prepared
to facilitate better management of cash.
The petty cash fund will be accounted using the imprest fund system. Half of it
will be under the custody of the office personnel for office supplies purchases and other
relevant minor selling and administrative expenses while the other half is under the custody
of the farm supervisor for petty farm expenses.
E. Alternative Sources of Financing
For the total project cost, five possible sources of financing are considered.
1. Paid-up Share Capital
This is the amount to be collected from full-time members upon admission into
the cooperative. Amount generated by this source would depend on the willingness of
the community to participate in the project.
2. Membership Fees Received
This is the amount to be collected from both associate and full-time members
upon admission into the cooperative. Amount generated by this source would depend
on the willingness of the community to participate in the project.
3. Long-term Debt
This includes debt which is due in five years or more. Rural and commercial
banks which provide agricultural loans are taken into consideration.
4. Short-term Debt
This includes debt which is due in one year or less. Rural and commercial banks
which provide agricultural loans are taken into consideration.
5. Grants/Donations
This includes grants given by local and international non-government
organizations, the local government of Davao and national government of the
Philippines.
Operating costs beyond the first three months of operations will be financed internally
through accumulated profits.
F. Sources of Financing the Project

The project will be financed as follows:
Paid-up Share Capital

Membership Fees
Long-term Debt
Short-term Debt
Total
40,500.00
75,600.00
550,000.00
320,000.00
986,100.00
Grants are not included as a source of financing the project because of the difficulty to
quantify the amount probable to be received from such source. See Appendix 4.1 for the
basis of debt borrowed.
a. Capital Structure Policy

Being a social enterprise, it is the cooperatives goal to benefit as many constituents
of the community as possible. Thus, the cooperative will be open to any constituent willing
and able to invest. It can cater up to PhP1,000,000 worth of investment from the
constituents with its authorized capital stock.
For the first year of operations, paid-up capital will be used to finance the purchase
of property, plant, and equipment. The balance will be financed by long-term debt.
Subsequent purchases of property, plant, and equipment which cannot be financed by
internally accumulated funds and any increase in paid-up capital will be financed through
borrowings.
b. Cost of Capital
The following is the Cooperatives weighted average cost of capital (based on the
formula provided by the United States Department of Agriculture):
Cost of Capital
2015
23.02
2016
76.89
2017
95.07
2018
113.62
2019
121.18
Short-term debt financing costs 15% per year and is used on the first year only. Longterm debt financing costs 10% per year. Financing through members paid-up capital costs
70% of annual net surplus.
Cost of capital increases per year as the Cooperative move towards full equity funding.
Cost of capital is relatively large compared that with other businesses because being a
cooperative, it seeks to give back to its members. Also, under the assumptions for this study,
all of the interest on share capital accumulated is paid back in cash. This may be countered
with a provision in the by-laws which would require a certain percentage to be invested back
to the cooperative. See Appendix 4.2 for computation of the weighted average cost of capital.
c. Dividend Policy
Interest on share capital is 70% of annual net surplus. This may be payable in cash or
other goods. This may also be reinvested into the cooperative as additional paid-up capital.
G. Pro-forma Financial Statements

ANIWAG COOPERATIVE
MONTHLY STATEMENTS OF FINANCIAL CONDITION
As of the Year 2015
JANUARY FEBRUARY MARCH APRIL
MAY
JUNE
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
Notes
ASSETS
Current Assets
Inventories
Raw Materials Inventory
Biological Assets
Subscription Receivable
Prepaid Expenses
Non Current Assets
Other Non-Current Assets
TOTAL ASSETS
430,666
335,933
29,152
57,017
49,550
88,997
129,155
123,195
131,574
215,336
263,598
63,484
5
6
1,673
1,793
1,579
31,312
1,484
60,830
1,378
16,986
1,271
16,944
1,177
17,725
1,070
17,010
964
16,877
857
17,435
751
18,339
656
18,095
550
18,508
7
8
121,500
555,632
121,500
490,323
121,500
3,000
215,967
81,000
2,750
159,131
81,000
2,500
151,265
81,000
2,250
191,148
40,500
2,000
189,735
40,500
1,750
183,286
40,500
1,500
191,867
1,250
235,676
1,000
283,349
750
83,293
444,275
445,438
650,932
647,456
640,181
632,906
625,630
618,355
611,080
603,805
596,529
589,254
10
42,482
486,757
1,042,389
41,268
486,707
977,030
40,055
690,986
906,953
38,841
686,297
845,428
37,627
677,808
829,073
36,413
669,319
860,468
35,200
660,830
850,566
33,986
652,341
835,627
32,772
643,852
835,718
31,558
635,363
871,039
30,344
626,874
910,223
29,131
618,385
701,677
LIABILITIES AND EQUITY

LIABILITIES
Current Liabilities
Loans Payable - Current
Accrued Expense
11 430,000.00
12
6,093.50
SSS/ECC/Philhealth/ Pag-IBIG Premium Contributions
13
Payable
2,850.00
Withholding Tax Payable
14
1,516.03
440,460
Loans Payable
16
440,000
880,460
EQUITY
Members' Equity
Subscribed Share Capital - Common
17
121,500
Paid-up Share Capital - Common
18
40,500
Undivided Net Surplus/(Net Loss)
(70)
161,930
TOTAL LIABILITIES AND EQUITY
1,042,389
430,000
13,325
5,930
1,516
450,771
430,000
19,419
5,930
1,516
456,864
394,444
26,191
7,949
1,516
430,101
358,889
32,963
7,949
1,516
401,318
323,333
39,736
7,949
1,516
372,535
287,778
46,508
7,949
1,516
343,751
252,222
53,281
7,949
1,516
314,968
216,667
60,053
7,949
1,516
286,185
181,111
66,825
7,949
1,516
257,402
145,556
73,598
7,949
1,516
228,619
110,000
500
7,949
2,866
121,315
440,000
890,771
440,000
896,864
440,000
870,101
440,000
841,318
440,000
812,535
440,000
783,751
440,000
754,968
440,000
726,185
440,000
697,402
440,000
668,619
330,000
451,315
121,500
121,500
81,000
81,000
81,000
40,500
40,500
40,500
40,500
81,000
81,000
81,000
121,500
121,500
(75,741) (151,911) (186,673) (174,245) (114,067) (95,186) (81,341)
86,259
10,089
(24,673) (12,245)
47,933
66,814
80,659
977,030 906,953 845,428 829,073 860,468 850,566 835,627
40,500
121,500
(52,467)
109,533
835,718
162,000
11,637
173,637
871,039
162,000
79,604
241,604
910,223
162,000
88,362
250,362
701,677
ANIWAG COOPERATIVE
MONTHLY STATEMENTS OF OPERATIONS
For the Year 2015
For the Months Ended
January
February
March
April
May
June
Notes
Sales
Cost of Goods Sold
Gross Margin
Other Income
Membership Fees
Less: Selling and Administrative Costs
Salaries & Wages
Employee Benefits
SSS, Philhealth, Pag-IBIG Premium Contribution
Professional Fees
Representation
Office Supplies
Communication
Depreciation
Insurance
Rentals
Amortization for Cooperative Development Cost
Net Operating Income
Less: Finance Costs
Net Surplus (Deficit)
20
21
22
75,600
23
24
25
26
27
28
10
29
18,382
1,510
1,771
3,000
25,000
150
2,000
500
2,200
460
18,382
1,510
1,771
3,000
25,000
150
2,000
500
2,200
460
18,382
1,510
1,771
3,000
25,000
150
2,000
500
2,200
500
460
7,000
3,500
400
1,214
7,000
3,500
400
1,214
7,000
3,500
400
1,214
67,087
8,513
67,087
(67,087)
67,587
(67,587)
121,002
82,501
38,501
122,604
38,357
84,246
24,622
2,189
2,423
3,000
3,000
150
2,000
500
2,200
7,938
500
3,794
83
167
7,000
3,500
400
1,214
64,679
(26,178)
169,635
37,583
132,052
24,622
2,189
2,423
3,000
3,000
150
1,000
500
2,200
7,938
500
3,794
83
167
7,000
3,500
400
1,214
63,679
20,567
24,622
2,189
2,423
3,000
3,000
150
1,000
500
2,200
500
7,938
500
3,794
83
167
7,000
3,500
400
1,214
64,179
67,872
8,583
8,583
8,583
8,583
8,139
7,694
(70)
(75,670)
(76,170)
(34,762)
12,428
60,178
ANIWAG COOPERATIVE
MONTHLY STATEMENTS OF OPERATIONS
For the Year 2015
July
August
September
October
November
December
Notes
Sales
Cost of Goods Sold
Gross Margin
Other Income
Membership Fees
Salaries & Wages
Employee Benefits
SSS, Philhealth, Pag-IBIG Premium Contribution
Professional Fees
Representation
Office Supplies
Communication
Depreciation
Insurance
Rentals
Less: Finance Costs
Net Surplus (Deficit)
20
21
129,182
39,371
89,810
22
23
24
25
26
27
28
10
29
123,120
38,790
84,330
24,622
2,189
2,423
3,000
3,000
150
1,000
500
2,200
7,938
500
3,794
83
167
7,000
3,500
400
1,214
63,679
26,131
137,172
37,757
99,415
24,622
2,189
2,423
3,000
3,000
150
1,000
500
2,200
7,938
500
3,794
83
167
7,000
3,500
400
1,214
63,679
20,650
171,453
37,753
133,699
24,622
2,189
2,423
3,000
3,000
150
1,000
500
2,200
500
7,938
500
3,794
83
167
7,000
3,500
400
1,214
64,179
35,236
175,727
38,608
137,119
24,622
2,189
2,423
3,000
3,000
150
1,000
500
2,200
7,938
500
3,794
83
167
7,000
3,500
400
1,214
63,679
70,020
128,252
39,788
88,465
24,622
2,189
2,423
3,000
3,000
150
1,000
500
2,200
7,938
500
3,794
83
167
7,000
3,500
400
1,214
63,679
73,440
24,622
2,189
2,423
12,000
3,000
150
1,000
500
2,200
2,000
7,938
500
3,794
83
167
7,000
3,500
400
1,214
74,679
13,785
7,250
6,806
6,361
5,917
5,472
5,028
18,881
13,845
28,875
64,103
67,968
8,757
ANIWAG COOPERATIVE
MONTHLY STATEMENTS OF CASH FLOWS
For the Year 2015
January
Cash Flows from Operating Activities
Net Income
Depreciation - Selling and Admin
Depreciation - Cost of Goods Sold
Decrease (Increase) in Raw Materials Inventory
Decrease (Increase) in Biological Assets , excluding depreciation
Decrease (Increase) in Prepaid Expenses
Increase (Decrease) in Accrued Expenses
Increase (Decrease) in SSS/ECC,etc. Contributions Payable
Increase (Decrease) in Withholding Tax Payable
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Cooperative Development Cost Incurred
Construction of Building on Leased Land
Purchase of Machineries, Tools and Equipment
Purchase of Furniture. Fixtures & Equipment(FFE)
Purchase of Transportaion Equipment
Construction of Nursery/Greenhouses
Net Cash Provided by Investing Activities
Cash Flows from Financing Activities
Cash received from short-term loan
Cash received from long-term loan
Cash Paid for short-term loan principal
Cash Paid for long-term loan principal
Subscription Installment Received
Interest on Share Capital Paid
Net Cash Provided by Financing Activities
Increase in Cash and Cash Equivalents
Add: Cash and Cash Equivalents, Beginning Balance
Cash and Cash Equivalents, Ending Balance
30
31
February

March
April
May
June
(70)
460
1,214
(1,673)
(1,793)
6,094
2,850
1,516
8,597
(75,670)
460
1,214
95
(26,422)
7,232
3,080
(90,013)
(76,170)
460
1,214
95
(26,422)
(3,000)
6,094
(97,731)
(34,762)
3,794
8,219
1,214
106
39,107
250
6,772
2,020
26,720
12,428
3,794
3,502
1,214
106
22
250
6,772
28,088
60,178
3,794
3,344
1,214
95
(643)
250
6,772
75,003
(43,696)
(158,641)
(27,611)
(258,483)
(488,431)
(4,720)
(4,720)
(9,050)
(200,000)
(209,050)
(3,800)
(3,800)
320,000
550,000
40,500
910,500
(35,556)
40,500
4,944
(35,556)
(35,556)
(35,556)
(35,556)
27,865
29,152
57,017
(7,467)
57,017
49,550
39,447
49,550
88,997
430,666
430,666
(94,733)
430,666
335,933
(306,781)
335,933
29,152
ANIWAG COOPERATIVE
MONTHLY STATEMENTS OF CASH FLOWS
For the Year 2015
July
Cash Flows from Operating Activities
Net Income
30
31
August

September
October
November
December
18,881
3,794
3,587
1,214
106
609
250
6,772
35,213
13,845
3,794
3,547
1,214
106
69
250
6,772
29,596
28,875
3,794
3,396
1,214
106
(473)
250
6,772
43,934
64,103
3,794
3,382
1,214
106
(803)
250
6,772
78,818
67,968
3,794
3,458
1,214
95
268
250
6,772
83,818
8,757
3,794
3,649
1,214
106
(581)
250
(73,098)
1,350
(54,558)
(35,556)
40,500
4,944
(35,556)
(35,556)
(35,556)
(35,556)
(35,556)
40,500
4,944
(35,556)
(35,556)
(35,556)
(110,000)
(145,556)
40,158
88,997
129,155
(5,960)
129,155
123,195
8,379
123,195
131,574
83,762
131,574
215,336
48,262
215,336
263,598
(200,114)
263,598
63,484
ANIWAG COOPERATIVE
S TATEMENT OF FINANCIAL CONDITION
2015
2016
As of December
2017
2018
2019
Notes
AS S ETS
Current Assets
Inventories
Raw M aterials Inventory
Biological Assets
Prepaid Expenses
Non Current Assets
Other Non-Current Assets
63,484
487,639
740,900
1,074,040
1,403,144
5
6
550
18,508
901
19,138
1,165
18,508
1,322
19,423
1,365
20,767
750
83,293
750
508,428
750
761,323
750
1,095,535
750
1,426,026
589,254
501,950
426,216
338,913
263,179
10
29,131
618,385
701,677
14,565
516,515
1,024,943
426,216
1,187,539
338,913
1,434,448
263,179
1,689,205
TOTAL AS S ETS
LIABILITIES AND EQUITY

LIABILITIES
Current Liabilities
Loans Payable - Current
Accrued Expense
SSS/ECC/Philhealth/ Pag-IBIG Premium Contributions Payable
Withhodling Tax Payable

Loans Payable
EQUITY
Members' Equity
Paid-up Share Capital - Common
S tatutory Funds
Reserve Fund
Optional Fund
TOTAL LIABILITIES AND EQUITY
110,000
500
7,949
2,866
61,853
183,169
110,000
520
7,949
2,952
354,550
475,971
110,000
541
7,949
3,044
485,014
606,549
110,000
562
7,949
3,141
652,316
773,968
585
7,949
3,241
796,666
808,441
16
330,000
513,169
220,000
695,971
110,000
716,549
773,968
808,441
18
19
162,000
162,000
162,000
162,000
162,000
8,836
8,836
2,651
6,185
26,509
188,509
701,677
59,486
50,650
15,195
41,640
166,972
328,972
1,024,943
128,774
69,288
20,786
90,142
308,990
470,990
1,187,539
221,962
93,188
27,956
155,373
498,480
660,480
1,434,448
335,771
113,809
34,143
235,040
718,764
880,764
1,689,205
12
13
14
15
ANIWAG COOPERATIVE
STATEMENT OF OPERATIONS
For the Years Ended
2015
2016
2017
2018
2019
Notes
Sales
Cost of Goods Sold
Gross Margin
20
21
Other Income
Memebrship Fees
22
Salaries & Wages
23
Employee Benefits
24
SSS, Philhealth, Pag-IBIG Premium Contribution25
Professional Fees
Representation
Office Supplies
Communication
26
Depreciation
27
Insurance
Rentals
28
Amortization for Cooperative Development Cost10
Less: Finance Costs
29
Net Surplus/(Deficit)
Allocation of Net Surplus

Interest on Share Capital
Reserve Fund
Cooperative Education and Training Fund
Community Development
Optional Fund
TOTAL
1,278,147
390,509
887,637
1,813,166
478,199
1,334,967
2,027,119
502,488
1,524,632
2,288,111
524,781
1,763,330
2,533,745
548,926
1,984,819
75,600
276,744
24,232
27,120
45,000
102,000
1,800
16,000
6,000
26,400
3,500
71,442
4,500
35,522
750
1,500
84,000
42,000
4,800
14,565
787,876
175,362
307,283
25,201
29,076
46,800
20,000
1,872
16,000
6,240
27,456
3,500
99,066
4,725
45,522
1,000
2,000
87,360
42,000
4,800
14,565
784,467
550,500
319,574
26,209
29,076
48,672
10,000
1,947
16,000
6,490
28,554
3,500
103,029
4,961
45,522
1,000
2,000
90,854
42,000
4,800
14,565
798,754
725,878
ANIWAG COOPERATIVE
87,000
44,000
33,000
STATEMENT OF OPERATIONS
For the Years
Ended
88,362
506,500
692,878
2015
2016
2017
61,853
8,836
8,836
2,651
6,185
88,362
354,550
50,650
50,650
15,195
35,455
506,500
485,014
69,288
69,288
20,786
48,501
692,878
332,357
27,258
29,076
50,619
10,000
2,025
16,000
6,749
29,696
3,500
107,150
5,209
45,522
1,000
2,000
94,489
42,000
4,800
-
809,450
953,880
345,651
28,348
29,076
52,644
10,000
2,106
16,000
7,019
30,884
3,500
111,436
5,470
45,522
1,000
2,000
98,268
42,000
4,800
-
835,724
1,149,095
22,000
11,000
931,880
2018
1,138,095
2019
652,316
93,188
93,188
27,956
65,232
931,880
796,666
113,809
113,809
34,143
79,667
1,138,095
ANIWAG COOPERATIVE
STATEMENT OF CASH FLOWS
2015
Cash Flows from operating activities
Net Income
2016
For the Years Ended

2017
2018
88,362
35,522
36,084
14,565
(550)
(17,064)
(750)
500
7,949
2,866
167,485
506,500
45,522
41,635
14,565
(351)
(484)
20
86
607,495
692,878
45,522
41,934
14,565
(264)
478
21
92
795,226

(43,696)
(158,641)
(9,050)
(36,131)
(200,000)
(258,483)
(706,001)
(3,050)
(8,520)
(11,570)

Utilization of Coop. Education & Training Fund
Utilization ofCommunity Development Fund
320,000
550,000
(320,000)
(110,000)
162,000
602,000
(110,000)
(8,836)
(2,651)
(61,853)
(183,340)
(110,000)
(50,650)
(15,195)
(354,550)
(530,395)
63,484
63,484
424,154
63,484
487,639
253,261
487,639
740,900

30
31
2019
931,880
45,522
41,759
(158)
(893)
22
96
1,018,229
1,138,095
45,522
41,748
(43)
(1,310)
22
100
1,224,134
(3,050)
(8,520)
(11,570)
(110,000)
(110,000)
(69,288)
(20,786)
(485,014)
(685,089)
(93,188)
(27,956)
(652,316)
(883,460)
333,140
740,900
1,074,040
329,104
1,074,040
1,403,144
ANIWAG COOPERATIVE
STATEMENT OF CHANGES IN MEMBERS' EQUITY
For the Years Ended 2015-2019
2015
Balance, January 1
Receipt on Installment of Subscribed Shares
Utilization of Funds
Allocation from Net Surplus
Balance, December 31
2016
Balance, January 1
2017
Balance, January 1
2018
Balance, January 1
2019
Balance, January 1
Statutory Funds
Coop.
Community
Education Development Optional Fund 2015 Total
162,000
8,836
2,651
6,185
26,509
8,836
2,651
6,185
188,509
Subsribed
Paid-up Share
Share Capital Capital (PSC)
121,500
40,500
(121,500)
121,500
162,000
Reserve
Fund
8,836
8,836
PSC
162,000
162,000
Reserve
8,836
50,650
59,486
Coop.
8,836
(8,836)
50,650
50,650
Statutory Funds
Community Optional Fund
2,651
6,185
(2,651)
15,195
35,455
15,195
41,640
2016 Total
188,509
(11,487)
151,950
328,972
PSC
162,000
162,000
Reserve
59,486
69,288
128,774
Coop.
50,650
(50,650)
69,288
69,288
Statutory Funds
15,195
41,640
(15,195)
20,786
48,501
20,786
90,142
2017 Total
328,972
(65,845)
207,863
470,990
PSC
162,000
162,000
Reserve
128,774
93,188
221,962
Coop.
69,288
(69,288)
93,188
93,188
Statutory Funds
20,786
90,142
(20,786)
27,956
65,232
27,956
155,373
2018 Total
470,990
(90,074)
279,564
660,480
PSC
162,000
162,000
Reserve
221,962
113,809
335,771
Coop.
93,188
(93,188)
113,809
113,809
Statutory Funds
27,956
155,373
(27,956)
34,143
79,667
34,143
235,040
2019 Total
660,480
(121,144)
341,428
880,764
NOTES AND COMMENTS TO FINANCIAL STATEMENTS

NOTE 1 - COOPERATIVE INFORMATION
Aniwag Cooperative was cooperated in the Philippines and duly registered with the
Cooperative Development Authority (CDA) having the objective of income generation for its
members through wholesale and retail of organically-grown lettuce. Its operation encompasses
the farming, packing, marketing, retailing and delivery of organically-farmed lettuce.
The accompanying financial statements were authorized for issue by the Board of Directors on
December 22, 2015.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of Preparation of Financial Statements
A. Statement of Compliance with PFRS for SMEs and Adherence to CDA
The financial statements of the cooperative was prepared using the measurement
guidelines set by the Philippine Financial Reporting Standards (PFRS) for Small and
Medium Enterprises (SMEs) for each type of asset, liability, members' equity, revenues and
operating costs, and the standard chart of accounts mandated by the Cooperative
Development Authority (CDA) except for the accounts payroll fund and vehicle
registration fee. The historical basis was used in preparing the financial statements.
B. Functional and Presentation Currency
The financial statements of the cooperative adapt the currency of the primary
economic environment where it operates. The financial statements are presented in
Philippine pesos, which is the cooperative's functional currency.
2.2 Cash and Cash Equivalents

Cash and Cash Equivalents include the accounts Checks and Other Items, Cash in Bank,
Payroll Fund, and Petty Cash. These accounts are composed of cash on hand and other cash
equivalents which are: (1) readily convertible to known amounts of cash and (2) have original
maturities of 3 months or less which carries negligible risk of changes in value due to changing
interest rates. (PAS 7)
Checks and Other Items
This account represents undeposited customer checks.
Cash in Bank
This account refers to money deposited in the bank under the name of the cooperative.
Payroll Fund
This account represents the currency and coins set aside for the payment of wages of
farmers and packers. This is under the custody of the farm manager.
Petty Cash Fund
This account refers to a limited amount of money under the custody of the Office
Personnel meant for minor expenditures such as office supplies and the Farm Supervisor
meant for minor farm-related expenses.
2.3 Biological Assets
The biological assets refer to cost of vegetables intended for sale. These are measured at
cost because fair value is not readily determinable without undue cost. Measurement at cost
rather than market value less estimated point-of-sale costs is allowed if fair value is determined
to be clearly unreliable. (PAS 41)
2.4 Property, Plant and Equipment

The property, plant and equipment are recorded at cost and depreciated using straight line
method basing on the estimated life of the assets.
2.5 Cooperative Development Cost
The cooperative development cost refers to expenses which are incurred prior to the
actual operation of the cooperative. This account has been subjected to amortization for three (3)
years as allowed by law.
2.6 Revenue Recognition
Revenue is recognized when it is probable that the economic benefits will flow to the
cooperative and when it can be measured reliably. The revenue recognition of the cooperative is
in accordance with the accrual system of revenue recognition.
2.7 Subsequent Events
Events occurring after year-end which provide additional information about the
cooperative's position at the balance sheet date (representing adjusting events) are reflected in the
financial statements while non-adjusting events are merely disclosed in the notes to financial
statements.
2.8 Allocation of Net Surplus
The cooperative's By-laws, in fulfillment of Chapter X of RA 9520, require the following
allocation of net surplus at yearend:
a) Reserve Fund a minimum of 10% from the net surplus shall be saved to ensure the
stability of development and curb the losses which may occur in the conduct of business
operation
b) Optional Fund the 7% of the net surplus shall be set aside for purposes which the Board
of Directors may see fit such as acquisition of additional land or equipment, for members'
benefit, etc.
c) Community Development Fund the 3% of the net surplus shall be set aside for purposes
that may benefit the immediate community upon which the organic farm operates namely
Brgy. Buda
d) Cooperative education and training fund the 10% of the net surplus shall be utilized for
education and training activities such as introduction of new methodologies or
technologies in line with organic farming.
NOTE 3 - SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
The cooperative's financial statements prepared in accordance with PFRS and CDA Chart
of Accounts necessitate management to render judgments and estimates that affect the amounts
in the financial statements and notes. Judgments and estimates are periodically evaluated or as
significant events that may affect amounts in financial statements or notes occur. These are also
based on historical events and other relevant factors such industry averages and expectation of
future events which are deemed reasonable and fitting in the circumstances.
a) Useful Life of Property and Equipment
The useful lives of the cooperative's properties and equipment are estimated
basing on the period over which assets are deemed to be available for use. These
estimates are periodically reviewed and changed if expectations vary from previous
estimates due to physical wear and tear, technical and operational obsolescence
NOTE 4 CASH AND CASH EQUIVALENTS

This account is composed of the following:
Check and Other Cash Items

Payroll Fund
Cash in Bank
Petty Cash Fund
January February
15,000
15,000
407,666 312,933
8,000
8,000
430,666 335,933
Check and Other Cash Items

Payroll Fund
Cash in Bank
Petty Cash Fund
2016
15,000
464,639
8,000
487,639
2017
15,000
717,900
8,000
740,900
March
15,000
6,152
8,000
29,152
April
15,000
34,017
8,000
57,017
2018
15,000
1,051,040
8,000
1,074,040
2019
26,393
15,000
1,353,751
8,000
1,403,144
May
15,000
26,550
8,000
49,550
June
21,204
15,000
44,793
8,000
88,997
2015
July
15,000
106,155
8,000
129,155
August September October November December

17,147
16,032
15,000
15,000
15,000
15,000
15,000
100,195
91,428 192,336
240,598
24,453
8,000
8,000
8,000
8,000
8,000
123,195
131,574 215,336
263,598
63,484
NOTE 5 RAW MATERIALS INVENTORY

Raw Materials Schedule
January
Beginning Balance
Purchased Seed Cost
Used in Sowing
Ending Balance
Beginning Balance
Purchased Seed Cost
Used in Sowing
Ending Balance
1,685
12
1,673
February
1,673
95
1,579
March
1,579
95
1,484
April
1,484
106
1,378
May
1,378
106
1,271
2015
June
July
1,271
1,177
95
106
1,177
1,070

1,070
964
857
751
656
106
106
106
95
106
964
857
751
656
550
2016
2017
2018
2019
December December December December
550
901
1,165
1,322
1,685
1,685
1,685
1,685
1,334
1,421
1,527
1,642
901
1,165
1,322
1,365
NOTE 6 BIOLOGICAL ASSETS

Schedule for Biological Assets at Month and Year End
2015
January
Beginning Balance
Allocated Cost
Sowing Cost
Transplanting Cost
Total
1,500
293
1,793
February
1,793
23,560
2,457
3,501
31,312
March
31,312
23,560
2,457
3,501
60,830
April
12,920
1,222
2,843
16,986
May
12,920
1,222
2,801
16,944
June
13,811
1,229
2,685
17,725
July
August
12,920
1,222
2,868
17,010
12,920
1,222
2,734
16,877
September
13,351
1,528
2,556
17,435
October
14,136
1,528
2,674
18,339
November December
14,136
1,229
2,730
18,095
12,920
1,222
2,822
16,964
2016
2017
2018
2019
Beginning Balance
Allocated Cost
Sowing Cost
Transplanting Cost
Total
14,596
1,700
2,842
19,138
13,778
1,513
3,218
18,508
14,233
1,683
3,508
19,423
15,085
1,873
3,809
20,767
See Appendix 4.3 and 4.4 for the Schedule for Sowing Cost and for Transplanting Cost, respectively.
NOTE 7
SUBSCRIPTION RECEIVABLE
Subscription Receivable Schedule
2015
Total Subscribed Shares
Total Payment
Subsciption Receivable
January
162,000.00
40,500.00
121,500.00
April
July
162,000.00 162,000.00
81,000.00 121,500.00
81,000.00
40,500.00
October
162,000.00
162,000.00
NOTE 8 PREPAID EXPENSES
Annual Vehicle Registration Fee

Annual Insurance
Paid Every End of March, to be used starting April
Prepaid Expense, Beginning

Expensed
Prepaid Expense, Ending
March
3,000.00
3,000.00
2,000.00
1,000.00
3,000.00
April
3,000.00
250.00
2,750.00
May
2,750.00
250.00
2,500.00
June
2,500.00
250.00
2,250.00
July
2,250.00
250.00
2,000.00
2015
2,000.00
1,750.00 1,500.00
1,250.00 1,000.00
250.00
250.00
250.00
250.00
250.00
1,750.00
1,500.00 1,250.00
1,000.00
750.00
At the end of December for the succeeding years, 9/12 of the total prepaid exense every March would remain. This is equal to 750.
At the end of December for the succeeding years, 9/12 of the total prepaid expense every March would remain. This is equal to 750.
NOTE 9 PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment Schedule for 2015
Building on Leased/Usufruct Land (BL/UL)

Accumulated Depreciation - BL/UL
Machineries, Tools and Equipment (MTE)
Accumulted Depreciation - MTE
Furniture. Fixtures & Equipment(FFE)
Accumulted Depreciation - FFE
Transportaion Equipment
Accumulated Depreciation - Transportation Equipment
Nursery/Greenhouses
Accumulated Depreciation - Nursery/Greenhouse
January
158,641
158,641
27,611
460
27,151
258,483
258,483
444,275
February
158,641
1,086 157,555
32,331
1,117
31,214
258,483
1,814 256,670
445,438
March
158,641
2,172 156,469
9,050
9,050
32,331
1,774
30,557
200,000
200,000
258,483
3,627 254,856
650,932
April
158,641
3,258 155,383
9,050
227
8,823
36,131
2,589
33,542
200,000
3,333 196,667
258,483
5,441 253,042
647,456
May
158,641
4,345 154,296
9,050
454
8,596
36,131
3,404
32,727
200,000
6,667 193,333
258,483
7,254 251,229
640,181
June
158,641
5,431 153,210
9,050
681
8,369
36,131
4,219
31,912
200,000
10,000 190,000
258,483
9,068 249,415
632,906
Building on Leased/Usufruct Land (BL/UL)

Accumulated Depreciation - BL/UL
Machineries, Tools and Equipment (MTE)
Accumulted Depreciation - MTE
Nursery/Greenhouses
July
158,641
6,517 152,124
9,050
908
8,142
36,131
5,035
31,096
200,000
13,333 186,667
258,483
10,881 247,602
625,630
August
158,641
7,603 151,038
9,050
1,135
7,915
36,131
5,850
30,281
200,000
16,667 183,333
258,483
12,695 245,788
618,355
September
158,641
8,689 149,952
9,050
1,363
7,688
36,131
6,665
29,466
200,000
20,000 180,000
258,483
14,509 243,974
611,080
October
158,641
9,775 148,866
9,050
1,590
7,460
36,131
7,480
28,651
200,000
23,333 176,667
258,483
16,322 242,161
603,805
November
158,641
10,861 147,780
9,050
1,817
7,233
36,131
8,295
27,836
200,000
26,667 173,333
258,483
18,136 240,347
596,529
December
158,641
11,948 146,693
9,050
2,044
7,006
36,131
9,111
27,020
200,000
30,000 170,000
258,483
19,949 238,534
589,254
Property, Plant and Equipment Schedule for the Years 2015 to 2019

Accumulated Depreciation - Building on Leased/Usufruct Land
M achineries, Tools and Equipment (M TE)
Accumulted Depreciation - M TE
Nursery/Greenhouses
2015
158,641
11,948 146,693
9,050
2,044
7,006
36,131
9,111
27,020
200,000
30,000 170,000
258,483
19,949 238,534
589,254
2016
158,641
24,981 133,660
9,050
4,769
4,281
36,131
18,893
17,238
200,000
70,000 130,000
258,483
41,712 216,771
501,950
2017
158,641
38,015 120,626
9,050
4,444
4,606
36,131
20,155
15,976
200,000
110,000
90,000
258,483
63,475 195,008
426,216
2018
158,641
51,049 107,592
9,050
7,169
1,881
36,131
29,937
6,194
200,000
150,000
50,000
258,483
85,238 173,245
338,913
2019
158,641
64,082
94,559
9,050
6,844
2,206
36,131
31,199
4,932
200,000
190,000
10,000
258,483
107,001 151,482
263,179
NOTE 10
COOPERATIVE DEVELOPMENT COST AND ITS AMORTIZATION
The breakdown of the Cooperative Development Cost can be seen in Appendix 4.5. The Cooperative Development Cost is
amortized over three years. The following is the schedule of amortization.
Beginning Balance
Amortization
Ending Balance
Beginning Balance
Amortization
Ending Balance
January February March April

43,696
42,482 41,268 40,055
1,214
1,214
1,214
1,214
42,482
41,268 40,055 38,841
2015
43,696
14,565
29,131
2016
29,131
14,565
14,565
May
38,841
1,214
37,627
June
37,627
1,214
36,413
2015
July August September October November December
36,413 35,200
33,986 32,772
31,558
30,344
1,214
1,214
1,214
1,214
1,214
1,214
35,200 33,986
32,772 31,558
30,344
29,131
2017
14,565
14,565
-
NOTE 11 LOANS PAYABLE CURRENT

Schedule of Loans Payable - Current
Short-Term Debt
Current Portion of Long-Term Debt
Short-Term Debt
Current Portion of Long-Term Debt
January
320,000
110,000
430,000
February
320,000
110,000
430,000
March
320,000
110,000
430,000
April
284,444
110,000
394,444
May
248,889
110,000
358,889
2015
June
July
213,333
177,778
110,000
110,000
323,333 287,778

142,222
106,667
71,111
35,556
110,000
110,000
110,000
110,000
110,000
252,222
216,667 181,111
145,556
110,000
2016
2017
2018
2019
110,000
110,000
110,000
110,000
110,000
110,000
-
NOTE 12 ACCRUED EXPENSE
13th Month Pay - Admin and Selling

13th Month Pay - Farm Supervisor
Interest Expense - Medium-Term Loan
13th Month Pay - Admin and Selling

13th Month Pay - Farm Supervisor
Interest Expense - Medium-Term Loan
January
1,510
4,583
6,094
February
3,020
638
9,167
500
13,325
March
4,531
638
13,750
500
19,419
April
6,720
638
18,333
500
26,191
May
8,909
638
22,917
500
32,963
2015
June
11,098 13,287 15,476
17,665
19,854
22,043
638
638
638
638
638
638
27,500 32,083 36,667
41,250
45,833
50,417
500
500
500
500
500
500
500
39,736 46,508 53,281
60,053
66,825
73,598
500
2016
2017
2018
2019
520
541
562
585
520
541
562
585
NOTE 13 SSS/ECC/PHILHEALTH/PAG-IBIG PREMIUM CONTRIBUTIONS PAYABLE
On General Manager
On Farm Supervisor
On Driver/Collection Officer
On Office Personnel
On Contractual Farmer
On Contractual Packer
Total
Total Payable
2015
January
February
March
April
May
June
EE Share ER Share EE Share ER Share EE Share ER Share EE Share ER Share EE Share ER Share EE Share ER Share
588.30
971.7
588.30
971.7
588.30
971.7
588.30
971.7
588.30
971.7
588.30
971.7
454.30
725.70
454.30
725.70
454.30
725.70
454.30
725.70
454.30
725.70
418.00
652.00
418.00
652.00
418.00
652.00
490.70
799.30
490.70
799.30
490.70
799.30
490.70
799.30
490.70
799.30
490.70
799.30
755.80
1,143.80
755.80
1,143.80
755.80
1,143.80
755.80
1,143.80
755.80
1,143.80
377.90
571.90
377.90
571.90
377.90
571.90
1,079.00
1,771.00 2,289.10
3,640.50 2,289.10
3,640.50 3,085.00
4,864.40 3,085.00
4,864.40 3,085.00
4,864.40
2,850.00
5,929.60
5,929.60
7,949.40
7,949.40
7,949.40
The balance of SSS/ECC/Philhealth/Pag-IBIG Premium Contributions Payable at the end of each month and year after April
2015 is equal to the balance in April 2015.
NOTE 14 WITHHOLDING TAX PAYABLE

Withholding Tax Payable Schedule
Percentage
On Salary
n/a
On Land Rental
5%
On Office Rental
5%
On Professional Fees
15%
Total Withholding Tax Payable
Percentage
On Salary
n/a
On Land Rental
5%
On Office Rental
5%
On Professional Fees
15%
Total Withholding Tax Payable
January
641
75
350
450
1,516
February
641
75
350
450
1,516
March
641
75
350
450
1,516
April
641
75
350
450
1,516
May
641
75
350
450
1,516
2015
June
641
641
641
641
641
641
641
75
75
75
75
75
75
75
350
350
350
350
350
350
350
450
450
450
450
450
450
1,800
1,516 1,516 1,516
1,516
1,516
1,516
2,866
2016
2017
2018
2019
641
641
641
641
75
78
81
84
364
379
394
409
1,872
1,947
2,025
2,106
2,952
3,044
3,141
3,241
NOTE 15 INTEREST ON SHARE CAPITAL PAYABLE

This account is reconciled as follows:
2015
61,853
61,853
Beginning Balance
Allocation from net surplus
Distributions to members
Ending Balance
2016
61,853
354,550
(61,853)
354,550
2017
354,550
485,014
(354,550)
485,014
2018
485,014
652,316
(485,014)
652,316
2019
652,316
796,666
(652,316)
796,666
NOTE 16 LOANS PAYABLE

Jan - Nov
2015
Unpaid Long Term Debt
Due on Year End
Noncurrent Portion of Loan Payable
550,000
110,000
440,000
Dec. 2015
440,000
110,000
330,000
2016
330,000
110,000
220,000
2017
220,000
110,000
110,000
2018
110,000
110,000
-
2019
-
NOTE 17 SUBSCRIBED SHARE CAPITAL COMMON

Total Subscribed Share Capital is 162,000. This is composed of 324 shares with par value
of P500. Subscribed share capital balance is the same with Subscription Receivable Balance.
NOTE 18 PAID-UP SHARE CAPITAL COMMON

The Paid-up Share capital by October 2015 onwards is 162,000.
The Articles of Cooperation and By-Laws of the cooperative requires all members to
make an investment to the capital stock of the cooperative.
See Appendix 4.6 for the Basis of Subscribed/Paid-up Share Capital and Membership Fee
and Appendix 4.7 for Membership Application Process.
NOTE 19 STATUTORY FUNDS

The accounts under this account are reconciled as follows:
2015
2016
2017
2018
2019
8,836
50,650
59,486
59,486
69,288
128,774
128,774
93,188
221,962
221,962
113,809
335,771
Reserve Fund
Beginning Balance
Allocation From Net Surplus
Ending Balance
8,836
8,836

Beginning Balance
Ending Balance
8,836
50,650
69,288
93,188
8,836
50,650
69,288
93,188 113,809
- 8,836 - 50,650 - 69,288 - 93,188
8,836
50,650
69,288
93,188 113,809

Beginning Balance
Ending Balance
2,651
15,195
20,786
27,956
2,651
15,195
20,786
27,956
34,143
- 2,651 - 15,195 - 20,786 - 27,956
2,651
15,195
20,786
27,956
34,143
Optional Fund
Beginning Balance
Ending Balance
6,185
6,185
6,185
35,455
41,640
41,640
48,501
90,142
90,142
65,232
155,373
155,373
79,667
235,040
NOTE 20 SALES
Monthly Sales Breakdown for 2015
January
February
March
April
May
June
July
August
September
October
November
December
Annual Sales
Iceberg
Romaine
Yield
Delivered Price per
(Kg)
kg
91
104
108
616
98
547
112
616
138
616
105
616
100
547
125
616
139
616
143
616
104
Yield
Delivered Price per
(Kg)
Kg
137
156
162
410
147
365
168
410
207
410
157
410
150
365
188
410
209
410
214
410
156
Sales
60,501
61,303
84,817
64,589
61,560
68,586
85,728
87,865
64,127
Total Sales
Sales
60,501
61,301
84,817
64,593
61,560
68,586
85,724
87,863
64,125
121,002
122,604
169,635
129,182
123,120
137,172
171,453
175,727
128,252
1,278,147
Sales
639,070
906,576
1,013,552
1,144,047
1,266,863
Total Sales
1,278,147
1,813,166
2,027,119
2,288,111
2,533,745
Yearly Sales Breakdown
2015
2016
2017
2018
2019
Iceberg
Romaine
Yield
Delivered Price per
(Kg)
kg
5,404 7,647
119
8,221
123
8,922
128
9,500
133
Yield
Delivered Price per
(Kg)
Kg
3,602
5,098
178
5,480
185
5,948
192
6,333
200
Sales
639,076
906,590
1,013,567
1,144,064
1,266,882
NOTE 21 COST OF GOODS SOLD

Cost of Goods Sold Schedule for 2015
January February
Variable Costs(Per Kilo)
Plastic Bag
Sticker
Fixed Costs
Salary - Farm Packer(FP)
SSS, Philhealth, Pag-IBIG Contribution - FP
Total Cost After Harvest
Cost of Bio Asset Harvested

Beginning Value
Allocated Cost (for the month/year)
Sowing Cost (for the month/year)
Transplanting Cost (for the month/year)
Bio Asset Available
Bio Asset Ending Balance
1,500
293
1,793
1,793
-

Cost of Goods Sold
1,793
23,560
2,457
3,501
31,312
31,312
-
March
31,312
23,560
2,457
3,501
60,830
60,830
-
April
May
June
July
2015
August
September
October
November December
1,026
2,052
912
1,824
1,026
2,052
1,026
2,052
1,026
2,052
912
1,824
1,026
2,052
1,026
2,052
1,026
2,052
100
127
92
67
4,810
572
8,845
100
127
92
67
4,810
572
8,503
100
127
92
67
4,810
572
8,845
100
127
92
67
4,810
572
8,845
100
127
92
67
4,810
572
8,845
100
127
92
67
4,810
572
8,503
100
127
92
67
4,810
572
8,845
100
127
92
67
4,810
572
8,845
100
127
92
67
4,810
572
8,845
60,830
23,560
2,750
3,501
90,642
16,986
73,656
16,986
23,560
2,750
3,501
46,798
16,944
29,854
16,944
23,560
2,457
3,501
46,462
17,725
28,738
17,725
23,560
2,750
3,501
47,536
17,010
30,526
17,010
23,560
2,750
3,501
46,822
16,877
29,945
16,877
23,560
2,750
3,501
46,689
17,435
29,254
17,435
23,560
2,750
3,501
47,247
18,339
28,908
18,339
23,560
2,457
3,501
47,857
18,095
29,763
18,095
23,560
2,750
3,501
47,906
16,964
30,942
8,845
73,656
82,501
8,503
29,854
38,357
8,845
28,738
37,583
8,845
30,526
39,371
8,845
29,945
38,790
8,503
29,254
37,757
8,845
28,908
37,753
8,845
29,763
38,608
8,845
30,942
39,788
Cost of Goods Sold Schedule for 2016 to 2019

2016
2017
2018
2019
Variable Costs(Per Kilo)

Plastic Bag
Sticker
Fixed Costs
Salary - Farm Packer(FP)
SSS, Philhealth, Pag-IBIG Contribution - FP
13,255
26,510
14,819
29,638
16,727
33,454
18,523
37,045
1,200
1,525
1,100
800
60,029
6,863
111,282
1,200
1,525
1,100
800
62,430
6,863
118,375
1,200
1,525
1,100
800
64,927
6,863
126,596
1,200
1,525
1,100
800
67,524
6,863
134,580

Beginning Value
Bio Asset Available
16,964
290,514
35,703
42,874
386,056
19,138
366,918
19,138
300,376
39,334
43,772
402,621
18,508
384,113
18,508
310,639
43,755
44,707
417,609
19,423
398,185
19,423
321,318
48,693
45,679
435,113
20,767
414,346
111,282
366,918
478,199
118,375
384,113
502,488
126,596
398,185
524,781
134,580
414,346
548,926

Cost of Goods Sold
NOTE 22 MEMBERSHIP FEES

Membership fee for the cooperative is PhP 200 per person.
NOTE 23 SALARIES & WAGES

The components of Salaries and Wages are as follows:
General Manager
Driver/Collection Officer
Office Personnel
Total
January
10,140
8,242
18,382
General Manager
Office Personnel
Total
July
10,140
6,240
8,242
24,622
General Manager
Office Personnel
Total
2015
121,680
56,160
98,904
276,744
February
10,140
8,242
18,382
2015
March
April
10,140
10,140
6,240
8,242
8,242
18,382
24,622
August September
10,140
10,140
6,240
6,240
8,242
8,242
24,622
24,622
2016
126,547
77,875
102,860
307,283
2017
131,609
80,990
106,975
319,574
May
10,140
6,240
8,242
24,622
June
10,140
6,240
8,242
24,622
October November December

10,140
10,140
10,140
6,240
6,240
6,240
8,242
8,242
8,242
24,622
24,622
24,622
2018
136,873
84,230
111,254
332,357
2019
142,348
87,599
115,704
345,651
See Appendix 4.8 to see the entitys monthly payroll schedule for all its employees.
NOTE 24 EMPLOYEE BENEFITS
Employee benefits comprise the accrual of the 13th month pay for the selling and
administrative employees: General Manager, Driver/Collection Officer and Office Personnel.
General Manager
Office Personnel
Total
Jan to March April to Dec

2015
2015
834
834
679
676
676
1,510
2,189
2015
10,010
6,110
8,112
24,232
2016
10,410
6,354
8,436
25,201
2017
10,827
6,609
8,774
26,209
2018
11,260
6,873
9,125
27,258
2019
11,710
7,148
9,490
28,348
NOTE 25 SSS, PHILHEALTH, PAG-IBIG PREMIUM CONTRIBUTION

SSS, Philhealth, Pag-IBIG Premium Contribution comprise Aniwags share on the social
charges for the selling and administrative employees.
Jan to March
2015
972
799
1,771
General Manager
Office Personnel
Total
April to Dec
2015
972
652
799
2,423
2015
11,660
5,868
9,592
27,120
2016-2019
11,660
7,824
9,592
29,076
NOTE 26 GAS, OIL AND LUBRICANTS

The following is the basis for the computation of this expense:
Price of
Gasoline/L
Ave. Monthly Mileage/

Vehicle
54
>One liter of gasoline travels 10km
1,470
Ave. Annual Mileage

/Vehicle (kms)
17,640
Gas / Month
Gas/Year
7,938
95,256
Total Expense
2015
2016
2017
2018
2019
71,442
99,066
103,029
107,150
111,436
NOTE 27 DEPRECIATION
Depreciation on:
Computer Set
Calculator
Office Table
Office Chair
Secondhand Multicab
Jan to
April to
March Dec 2015
404
404
7
7
33
33
17
17
3,333
460
3,794
2016
4,842
80
400
200
40,000
45,522
2017
2018
4,842
80
400
200
40,000
45,522
4,842
80
400
200
40,000
45,522
2019
4,842
80
400
200
40,000
45,522
NOTE 28 RENTALS
This account is comprised of the monthly rental payment for the Davao office of the
entity which is located at Davao City Chamber of Commerce and Industry, Inc. Corporate Office,
J.P. Laurel Ave., Davao City.
Monthly
Annual
2015
7,000
84,000
2016
7,280
87,360
2017
7,571
90,854
2018
7,874
94,489
2019
8,189
98,268
NOTE 29 INTEREST EXPENSE ON BORROWINGS

Interest Expense on Borrowings is computed as follows:
2015
Short-term Borrowing
Long-term Borrowing
Total
January
to April
4,000
4,583
8,583
May
3,556
4,583
8,139
June
3,111
4,583
7,694
July
2,667
4,583
7,250
Short-term Borrowing
Long-term Borrowing
Total
2,015
32,000
55,000
87,000
2,016
44,000
44,000
2,017
33,000
33,000
2,018
22,000
22,000
August September October NovemberDecember

2,222
1,778
1,333
889
444
4,583
4,583
4,583
4,583
4,583
6,806
6,361
5,917
5,472
5,028
2,019
11,000
11,000
NOTE 30 DEPRECIATION - COST OF GOODS SOLD

Schedule of Depreciation in Cost of Goods Sold for 2015
January February
Fixed Costs
Total After Harvest Cost
Beginning Value
Bio Asset Available
Cost of Goods Sold
March
1,283
113
1,701
3,096
3,096
-
3,096
1,283
113
1,701
6,193
6,193
-
April
May
June
July
2015
August
September
October
November
December
100
127
92
67
385
100
127
92
67
385
100
127
92
67
385
100
127
92
67
385
100
127
92
67
385
100
127
92
67
385
100
127
92
67
385
100
127
92
67
385
100
127
92
67
385
6,193
1,283
113
1,701
9,289
1,455
7,834
1,455
1,283
113
1,701
4,552
1,435
3,117
1,435
1,283
113
1,701
4,531
1,572
2,959
1,572
1,283
113
1,701
4,668
1,467
3,201
1,467
1,283
113
1,701
4,564
1,402
3,161
1,402
1,283
113
1,701
4,499
1,488
3,011
1,488
1,283
113
1,701
4,584
1,588
2,996
1,588
1,283
113
1,701
4,684
1,612
3,072
1,612
1,283
113
1,701
4,708
1,445
3,263
385
7,834
8,219
385
3,117
3,502
385
2,959
3,344
385
3,201
3,587
385
3,161
3,547
385
3,011
3,396
385
2,996
3,382
385
3,072
3,458
385
3,263
3,649
Schedule of Depreciation in Cost of Goods Sold for 2016 to 2019

2016
Fixed Costs
2017
2018
2019
1,200
1,525
1,100
800
4,625
1,200
1,525
1,100
800
4,625
1,200
1,525
1,100
800
4,625
1,200
1,525
1,100
800
4,625

Beginning Value
Bio Asset Available
1,445
15,394
1,353
20,410
38,601
1,591
37,010
1,591
15,394
1,353
20,410
38,748
1,439
37,309
1,439
15,394
1,353
20,410
38,596
1,461
37,134
1,461
15,394
1,353
20,410
38,618
1,495
37,123

Cost of Goods Sold
4,625
37,010
41,635
4,625
37,309
41,934
4,625
37,134
41,759
4,625
37,123
41,748
NOTE 31
CHANGE IN BIOLOGICAL ASSETS, EXCLUDING DEPRECIATION
Bio Asset Ending

Less: Depreciation in Bio Asset Ending
Bio Asset Ending, excluding depreciation
Decrease (Increase) in Biological Assets,
excluding depreciation
Bio Asset Ending

Less: Depreciation in Bio Asset Ending
Bio Asset Ending, excluding depreciation
Decrease (Increase) in Biological Assets,
excluding depreciation
January
1,793
1,793
February
31,312
3,096
28,215
March
60,830
6,193
54,638
April
16,986
1,455
15,531
May
16,944
1,435
15,509
2015
June
17,725
1,572
16,152
July
17,010
1,467
15,543
(1,793)
(26,422)
(26,422)
39,107
22
(643)
609
2016
2017
December December
19,138
18,508
1,591
1,439
17,547
17,069
(484)
478

16,877
17,435
18,339
18,095
18,508
1,402
1,488
1,588
1,612
1,445
15,475
15,947
16,751
16,483
17,064
69
(473)
(803)
268
(581)
2018
2019
December December
19,423
20,767
1,461
1,495
17,962
19,272
(893)
(1,310)
H. Financial Analyses
a. Horizontal Analyses
Horizontal Analysis - Statement of Operations Accounts
2015
2016
2017
2018
2019
Sales
100%
142%
159%
179%
198%
Cost of Goods
Sold
100%
122%
129%
134%
141%
Gross Margin
100%
150%
172%
199%
224%
Selling and Administrative

Cost
100%
100%
101%
103%
106%
Finance Cost
100%
51%
38%
25%
13%
Net Surplus
100%
573%
784%
1055%
1288%
There is an increasing trend in sales due to the projected annual increase in quantity sold
of 7.5% and the projected increase in price of 4%. Cost of goods sold, on the other hand,
though also increasing, shows less percentage increase compared to sales. This is because of
the lower total cost per unit of harvest as quantity harvested increases. This is due to the fact
that fixed costs will be distributed to more units. In Aniwags case, fixed costs did not
increase for the five years since production is still within the allowable capacity of the farm.
As a result of a bigger percentage increase in sales relative to cost of goods sold, gross margin
also shows an increasing trend.
There is also an increasing trend in selling and administrative cost primarily due to
inflation. The cost on the second year is at par with the first year in spite of inflation because
of considerable decrease in advertising cost. Increase on the next two years are not as high as
inflation rate due to further decrease in advertising cost and full amortization of cooperative
development cost.
Finance cost is decreasing per year because of the full payment of short-term debt on
the first year and annual payments on long-term debt.
Because increase in gross margin and decrease in finance costs outweigh the net
increases in selling and administrative cost, net surplus shows an increasing trend, reaching to
more than twelvefold of that on the first year of operations by the end of five years.
Overall, the business has a strong result on operations. Big increase in net surplus per
year means more funds to be allocated on interest on share capital and statutory funds. This
translates to substantial economic benefit to the community. Also, cost of debt will be lower
as the firm becomes less risky in the eyes of creditors. Furthermore, grants will be easier
received since the donor will have more trust in the cooperative because of its good operations.
This will aid in future expansion and growth.
b. Vertical Analyses
Vertical Analysis - Statement of Operations
Vertical Analysis
Statement of Operations
Sales
Less:Cost of Goods Sold
Gross Margin
Add:Other Income
Less:Administrative and Selling Expenses
Income before Interest
Less:Finance Cost
Net Income
2015
100.00%
30.55%
69.45%
5.91%
61.64%
13.72%
6.81%
6.91%
2016
100.00%
26.37%
73.63%
0.00%
43.27%
30.36%
2.43%
27.93%
2017
100.00%
24.79%
75.21%
0.00%
39.40%
35.81%
1.63%
34.18%
2018
100.00%
22.94%
77.06%
0.00%
35.38%
41.69%
0.96%
40.73%
2019
100.00%
21.66%
78.34%
0.00%
32.98%
45.35%
0.43%
44.92%
The vertical analysis on the statement of operations further supports the results of the
horizontal analysis.
It can be seen that gross margin is increasing as a percentage of sales for the same
reason stated in the horizontal analysis. Fixed costs are spread over more units thereby
decreasing total cost per unit.
Also, percentage of administrative and selling cost to sales is decreasing. Current
expenses can still accommodate the sales increase.
Furthermore, percentage of finance cost to sales is decreasing because of annual
payments of debt.
As a result of the reasons stated above, net income percentage to sales also show an
increasing trend, reaching up to 44.92% of sales on the fifth year.
The results above show that the company is experiencing economies of scale. When the
limit of the current capacity is reached, further increase in quantity sold must be supported by
increase in fixed costs, including administrative and selling expenses. The cooperative may
have to hire more workers and increase investments in property, plant and equipment. This
may result to percentages similar or even less desirable than that on 2015, depending on the
degree of investment on expansion. Within the next five years, this limit will be reached.
Thus, the cooperative must make sure that it has accumulated enough funds or has other
sources of funds available to finance this inevitable expansion. After this phase though, the
company will once again move towards economies of scale as sales increase.
Horizontal Analysis - Statement of Financial Condition Accounts

With 2015 As Base Year
2015
2016
2017
2018
2019
100%
770%
1698%
1698%
2218%
Current Assets
100%
610%
914%
1315%
1712%
Noncurrent Assets
100%
84%
69%
55%
43%
Total Assets
100%
146%
169%
204%
241%
Current Liabilities
100%
260%
331%
423%
441%
Noncurrent Liabilities
100%
67%
33%
0%
0%
Liabilities
100%
136%
140%
151%
245%
Members' Equity
100%
100%
100%
100%
100%
Statutory Funds
100%
630%
1166%
1880%
2711%
Reserve Funds
100%
673%
1457%
2512%
3800%
100%
573%
784%
1055%
1288%
100%
573%
784%
1055%
1288%
Optional Fund
100%
673%
1457%
2512%
3800%
Equity
100%
175%
250%
350%
467%
There is accumulation of cash by the end of the fifth year resulting to more than 22 times
of the balance on the first year. This drives the large increase in current assets and total assets
in spite of decreasing noncurrent assets due to depreciation. This percentage increase in cash
however, will not be as big on the sixth year since on that year, new property, plant and
equipment will be purchased.
On the other hand, there is a larger percentage increase in liabilities than assets because in
spite of decreasing noncurrent liabilities, current liabilities are increasing to up to fourfold by
2019. The interest on share capital payable brought about by increasing net surplus drives
this increase.
This does not mean, however, that there is increased reliance on debt. Percentage
increase of equity is substantially bigger than the increase in total liabilities.
Reserve fund and optional fund are now 38 times than that on the first year and
community development fund and cooperative education and training fund are now more than
12 times than that on 2015 because of strong result of operations and mandatory accumulation
of funds. The continuing increase on reserve fund makes the cooperative more stable and
desirable in the eyes of creditors, investors, and donors. Also the increase in cooperative
education and training fund means more resources for better farming, selling, and
administrative practices. This could translate to an even better result on operations. Increase
on the community development fund means more help may be extended to Brgy. Buda.
With large percentage increase in cash, less increase in liabilities, and larger increase in
equity, the cooperative is going towards a financial condition which is open to expansion and
growth activities. This means that the company is ready for the inevitable increase in fixed
costs and investment for the coming years due to reaching the capacity limit. Also, for
Aniwag, this may include addition of kinds of lettuce produced or even another kind of
vegetable to be farmed. Investment on farming technology and modern organic practices may
also be considered for more and high-quality yield.
Vertical Analysis - Statement of Financial Condition Accounts

Vertical Analysis
Statement of Financial Condition
Cash
Inventory
Biological Asset
Other Current Asset
Total Current Assets
Non Current Assets
Total Assets
Other Current Liabilites
Current Liabilities
Non Current Liabilities
Total Liabilities
Paid-up Share Capital
Statutory Funds
Total Equity
Total Liabilities and Equity
701,677.20
2015
9.02%
0.10%
2.64%
0.11%
11.87%
88.13%
100%
1,024,942.99
2016
47.54%
0.12%
1.87%
0.00%
49.53%
50.39%
100%
1,187,538.92
2017
62.34%
0.14%
1.56%
0.00%
64.05%
35.89%
100%
1,434,447.96
2018
74.95%
0.01%
1.35%
0.00%
76.32%
23.63%
100%
1,689,205.04
2019
83.12%
0.02%
1.23%
0.00%
84.38%
15.58%
100%
8.82%
17.29%
26.10%
47.03%
73.13%
23.09%
3.78%
26.87%
100.00%
34.59%
0.12
46.44%
0.21
67.90%
0.16
16.29%
32.10%
100.00%
40.84%
10.23%
51.08%
9.26%
60.34%
0.14
26.02%
39.66%
100.00%
45.48%
8.48%
53.96%
0.00%
53.96%
0.11
34.75%
46.04%
100.00%
47.16%
0.70%
47.86%
0.00%
47.86%
0.10
42.55%
52.14%
100.00%
There is increasing percentage of cash to total assets. By 2019, total assets comprise of
83.12% cash. This is substantially big. During the years 2015-2019, relatively safe
investments on time deposits and commercial papers may be looked into to earn from idle
funds. For the next years, however, cash outflows due to expansion must be taken into
consideration in investing activities. Cash may be locked into an investment only if cost of
borrowing of the same amount is less than the income earned on that. This investment of idle
funds requires further study and training on the part of the cooperatives administration.
The figures above also show increasing reliance on equity as short-term and long-term
debts are paid and earnings are accumulated. In the long-run however, as a cooperative in
Brgy. Buda, there is a limit to Aniwags source of financing from paid-up members equity.
This means that in the coming years, depending on the degree of expansion, the cooperative
will have to resort to short-term and long-term debts. In a business perspective, this is better
financially since cost of debt is cheaper than the cooperatives cost of equity. This will result
to a higher earnings per share for members.
c. Financial Ratios
2015
2016
2017
2018
2019
Current Ratio
0.45
1.07
1.26
1.42
1.76
Quick Ratio
0.35
1.02
1.22
1.39
1.74
(99,876)
32,456
154,773
321,567
617,585
Liquidity Ratios
Working Capital
Current ratio and quick ratio measures the firm's ability to pay its short-term liabilities.
As what can be seen above, the firm has current ratio and quick ratio of less than 1 in the first
year. This does not mean that the cooperative will absolutely go into bankruptcy. It is only
normal since it has only started its operations. Nevertheless, the firm's current ratio has
increasing trend over time as it grows longer in the business. The reason for this is that its
cash account increased dramatically.
The fact that the firm has difficulty in paying short-term debts on the first year is the
reason why the cost of short-term debt is higher than the long-term debt. Also, though the
current ratio of the cooperative is less than two, which as a rule of thumb is more desirable,
the firm is still considered liquid since from 2016 onwards, cash comprises of almost 50% and
more of the total assets.
Working capital indicates whether the company's short-term assets is enough to cover its
short-term debt. In 2015, the cooperatives working capital has a negative value mainly
because of the fact that cash balance is low, short-term debt borrowed upon inception has just
been paid, and interest on share capital payable the following year is high. This further
supports the firms liquidity problems as shown in the current ratio and quick ratio. To
remedy this, the firm may consider paying the interest on share capital payable the following
year in installments. A per quarter payment may be appropriate.
2015
2016
2017
2018
2019
Gross Profit Margin
0.69
0.74
0.75
0.77
0.78
Net Profit Margin
0.07
0.28
0.34
0.41
0.45
Fixed Asset
Turnover
2.17
3.32
4.37
5.98
8.42
Total Asset
Turnover
1.82
2.10
1.83
1.75
1.62
Return on Assets
0.50
0.64
0.66
0.73
0.74
Return on Equity
0.94
1.96
1.73
1.65
1.48
272.72
1,563.27
2,138.51
2,876.17
3,512.64
Profitability Ratios
Earnings per Share
Philippine Agribusiness Investment Opportunities, Department of Agriculture-Agribusiness and

Marketing Assistance Service, and Japan International Cooperation Agency, 2012
In the figure presented above, the gross margin and net profit margin has an increasing
trend because of the upward trend in sales and gross profit. The companys gross margin
ranges between 69% to 78%. This is high compared to other products in the market but is
usual in agriculture. For instance, according to the Department of Agriculture-Agribusiness
and Marketing Assistance Service (2012), planting and selling cucumber has a gross margin
of 75%. Raw materials such as seeds are cheap. Wages of farmers are also inexpensive.
What comprises most of the cost are those involved in actually making the sale happen. This
is particularly the case for Aniwag with its delivery service and customer-oriented approach.
Total asset turnover is decreasing per year due to the accumulation of idle cash.
Recommendations on how to treat this asset is already mentioned in the trend analysis.
However, fixed asset turnover is increasing. This implies efficient use of fixed assets in
farming, harvesting, and selling the produce.
Aniwags return on asset ratio shows an ascending trend because of increase of net
income over time in relation to its total assets.
Return on equity is higher than return on assets. This means that financial leverage is
positive. The companys return on total assets exceeds the rate of return it pays to its
creditors. With a positive leverage, having more amount of debt in the capital structure would
increase earnings per share. Thus, in expansion activities, both short-term and long-term
borrowings must be considered as an alternative financing.
Earnings per share is constantly increasing per year. By 2019, it has reached to about
P3,600 per share. This is almost seven times of the shares P500 par value. Cash received by
the members is 70% of earnings per share because of the cooperatives policy in allocation of
net surplus. Thus, Aniwag Cooperative is a good investment for the constituents of Brgy.
Buda.
2015
2016
2017
2018
2019
Debt Ratios
0.73
0.68
0.60
0.54
0.48
Debt-to-Equity
Ratio
2.72
2.12
1.52
1.17
0.92
Solvency Ratios
Debt ratio provides financial stability of the firm by comparing its total liabilities in
relation to its total assets. The firm has a descending trend in its debt ratio since its total assets
has increased significantly due to its cash account.
Debt-to-equity ratio measures the amount of assets being provided by creditors for each
dollar of assets being provided by members. Although the debt percentage started big in its
first year because of the firm's dependency on debt financing to start its operations, the
cooperative was able to catch up because of its increasing trend in its equity due to its income
or net surplus.
Though the debt ratio and debt-to-equity ratio shows a balance between debt and equity
financing, with more or less 50:50 or 60:40 ratio, most of the firms financing actually comes
from equity internally accumulated funds and members capital. In fact, debts to financing
creditors are all paid in full by 2019. This ratio shows otherwise because it includes interest
on share capital payable a substantial amount of liability, as debt from creditors. Essentially,
this is from and for the owners of the cooperative.
d. Capital Budgeting Analysis

Payback Period
Investment equals subscribed share capital plus short and long term debt
Investment *
Cash Inflow**
Cumulative Cash
Inflow
2015
1,032,000.00
167,485.43
2016
607,494.61
774,980.05
2017
795,225.96
1,570,206.01
Payback Period
2.32 years
*Investment is sum of short-term and long-term debt and members'

subscribed and paid-up equity
**Cash flows from operating activities
Payback period focuses on the length of time it will take for the investment to return its
original cost. The payback period of the investment in the venture is 2.32 years. This means
that in approximately 2 years and 4 months the inflow of benefits derived from the investment
made will cover the cost of investment. The payback period computed is primarily affected
by the sizeable increase in the net income in the cash inflow.
According to the publication released by the Department of Agriculture (Department of
Agriculture-Agribusiness and Marketing Assistance Service, and Japan International
Cooperation Agency, 2012) (DA) on 2012 the payback period other agricultural produce are
as follows: cacao (4 years), coffee (4 years), oil palm (2 years 4 months and 8 days), and
black pepper (3 years). Comparing these with the payback period computed, it can be
deduced that the lettuce has a faster time required to recoup the funds expended in an
investment. This could be due to the fact that the gestation period for lettuce is just at
maximum of 60 days and so the inflow of cash can start as early as the first year of operations.
Discounted Payback Period
Discounted Payback Period: 85.97% Discount Rate
Year
Investment
Cash Flow
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
1,032,000
167,485
607,495
795,226
1,018,229
1,224,134
762,514
762,514
762,514
762,514
762,514
762,514
762,514
762,514
762,514
762,514
762,514
762,514
762,514
762,514
762,514
Present Value
Factor
0.53772114
0.28914402
0.15547885
0.08360427
0.04495578
0.02417367
0.01299870
0.00698967
0.00375850
0.00202102
0.00108675
0.00058437
0.00031423
0.00016897
0.00009086
0.00004886
0.00002627
0.00001413
0.00000760
0.00000408
Discounted Cumulative Discounted

Cash Flow
Cash Flow
90,060
175,653
123,641
85,128
55,032
18,433
9,912
5,330
2,866
1,541
829
446
240
129
69
37
20
11
6
3
90,060
265,714
389,355
474,483
529,515
547,948
557,859
563,189
566,055
567,596
568,425
568,870
569,110
569,239
569,308
569,345
569,365
569,376
569,382
569,385
Table 4.1 Weighted Average Cost of Capital

2015
2016
2017
2018
2019
Equity
15.57
71.26
91.07
111.22
119.88
Long-term Debt
7.45
5.72
4.00
2.40
1.30
WACC
23.02
76.98
95.07
113.62
121.18
Mean
-
85.97%
The usage of discounted payback period for the investment made was considered but
the results proved to be unsatisfactory and borderline unreliable.
The unreliability of the result can be attributed to two reasons. First is that the discount
rate used was 85.97% which is the mean of the five-year weighted average cost of capital
(WACC) computed as seen on Table 4.1. This rate was used because there is no industry
discount rate available. Unlike other forms of businesses however, the cooperatives WACC
is not the minimum required rate of return on its investments. One reason is that as a social
enterprise, it aims to give back as much as possible to its members and the community. Thus,
WACC is considerably high. For Aniwag Cooperative, 70% of the net income of the year will
be distributed in cash to the members. This drives the big WACC. Due to the reason stated,
using the WACC in the discounted payback period computation does not accurately reflect
the time value of money. Second factor which adds to the unreliability of the figures is that
the cash flows on years 2020-2034 are assumed to be the mean of the cash flows of the first
five years. This amount may be materially misstated since it does not consider further
increases in sales and outflows for additional investment that goes with the increase. The
computation above is not a complete computation and it stopped at year 2034 because further
discounted cash flows will be in very small increments. Thus, the undiscounted payback
period is recommended to be used as reference for actual feasibility assessment.
Payback Period (Members Point-of-view)

Par Value of One Share
(Investment)
500
2015
2016
2017
Interest on Share Capital paid

(per share)*
191
1094
Payback Period
*based on 324 shares
2.28 years
Being a cooperative, one of its main goals is the equitable distribution of wealth among
its members based on their interest on the cooperative. With that, the payback period of a
members per share investment was computed in order to know when they could get their
initial investment back. The payback period is 2.28 years, which means in approximately 2
years and 3 months a regular member will get the whole value of his/her initial investment per
share, which is 500 pesos. This result is affected by the yearly net income of the venture, as
70% of the yearly income is distributable to the regular members. One could argue that the
payback period is long yet it is notable to see that the operations started on April 2015 and
the company relied on borrowings aside from the capital contributions. The lower sales and
high finance cost affected the net income on the start of operations. However, the distributable
interest on share capital per share increases per year with 1,496.96 on year 2018, and 2013.32
on year 2019. These are based on the cash flow computed in this chapter and on the
assumption that the number of regular members will remain the same. With these, the
individual investor will reap more than what he paid for.
Return on Investment (ROI)

Net Operating
Income
Average Operating
Assets
Return on
Investment
2015
175,361.77
350,838.60
49.98%
2016
550,500.06
863,310.10
63.77%
2017
725,877.74
1,106,240.96
65.62%
2018
953,879.79
1,310,993.44
72.76%
2019
1,149,094.83
1,561,826.50
73.57%
The computation above shows the yearly computation of the return on investment (ROI)
of the venture. The baseline ROI is at 49.98% and it increases yearly ending at an ROI of
73.57% on year 2019. The increase in the ROI is due to the aggressive increase of the net
operating income from years 2015-2019. However, it is worthy to take note that the increase
in net operating income is matched by the increase of average operating assets from year to
year. Net operating income increased by 555% from year 2015 while the average operating
assets increased by 345%. The positive ROIs depicts that the investment is efficient and
provides a snapshot on the profitability of the venture as the gains of the investment compare
favorably to costs.
According to the publication released by the Department of Agriculture on 2012, the
production of lettuce in a 1-hectare farm can provide an ROI as high as 209%. However, the
ROI computation of the DA is limited to the cost of production only. Moreover, the venture in
this feasibility study provides additional services to its customers such as direct delivery to
them, packaging of the produce, and the use of organic method of farming. These additional
facilities add to the investment of the venture.
Comparing the ROIs of the venture with the ROIs of other agricultural produce based
on the publication released by the Department of Agriculture, such as ampalaya with 44%,
cacao with 53%, pineapple with 46%, oil palm with 63%, and squash with 49%, it can be
observed that the ROI of the venture stands stronger compared with the ROIs of these
agricultural produce even with the additional services offered.
Internal Rate of Return (IRR)
Source: http://www.datadynamica.com/irr.asp
The data above exhibits the computed Internal Rate of Return (IRR) of the investment.
For the computation, the net cash outflow from investing activities and net cash inflow from
operating activities were used in order to match the cost and benefits. The resulting IRR is
67.660%. It is the interest rate that makes the cash outflows spent on an investment equal the
cash inflows that come into the company as a result of the investment. The best way of using
this computed rate is through comparing it with the cost of capital of the venture. As seen on
Table 4.1, the cost of capital varies from year to year so that we will use the mean of these
rates for comparability purposes. See Appendix 4.2 for complete computation of the WACC.
The mean cost of capital is 85.97%. On the surface, it is apparent that the cost of capital
exceeds the IRR. Generally, the IRR must be greater than the cost of capital for a project to
add value to the firm. To wit, since the IRR is the rate of return promised by an investment
over its useful life then it should be greater than the cost of a company's funds (both debt and
equity) to have a favorable effect. Although we recognize this general rule, it is of equal
importance to evaluate the components of the cost of capital. The high cost of capital is
mainly attributable to the high amount of payments of interest on the regular members of the
cooperative. Moreover, the assumption in the study is that the number of regular members
will stay constant in the five-year period so as to make the paid-up capital equally constant.
One way of making the IRR better is if we stipulate that a part of the interest on share capital
must be reinvested in the coop or if we lower the rate of annual interest on share capital
payment.
I. Accounting and Control Plan

a. Revenue Cycle
The Process
Collection Officer
All sales are made in cash. The collection officer/driver delivers the produce,
receives payment in check, and issues the customer copy of the triplicate sales invoice. At
the end of the day, he makes a summary of all his deliveries and cash receipts. He leaves
one copy of all the sales invoices to the Davao Office for pickup by the accountant. He
remits all the checks received together with the summary to the general manager and one
copy of all the sales invoices issued.
General Manager
The general manager reconciles the summary provided by the collection officer, the
copy of all the sales invoices issued, and the customer checks remitted by the collection
officer. He then prepares a deposit slip and deposits the checks once a week. He leaves a
copy of the deposit slips and the copy of the summary of deliveries and sales invoices to
the Davao Office for pickup by the accountant. He also keeps a copy of the deposit slip of
his own for storage.
Accountant
The accountant monthly reconciles the copy of sales invoices issued with its
summary and copy of deposit slips. He then records sales and cash receipt.
Office Personnel
The office personnel shall prepare the monthly bank reconciliation.
b. Expenditure Cycle
Farm Supervisor
The farm supervisor shall monitor raw materials inventory. When levels reach
reorder point, he shall issue a purchase order (P.O.) and give it to the general manager. He
shall also keep a copy of the purchase order issued in the open P.O. file. He shall also send
to the Davao Office one copy of all purchase orders issued. Upon arrival of the raw
materials purchased, the farm supervisor shall prepare two copies of receiving report. One
shall be sent to the Davao Office for pickup by the Accountant and the other shall be
matched with the P.O in the open P.O. file. The receiving report and the purchase order
shall then be filed in the closed P.O. file.
General Manager
The general manager shall issue a check for the purchase of the raw material needed.
The check must be payable to the identified supplier. There must be a prior agreement
with identified suppliers regarding payments in check. The raw material is then purchased.
Purchases are ideally made at most once a week. Receipt or invoice from the supplier shall
be sent to the Davao Office for pickup by the accountant. The general manager shall make
a list of all suppliers invoices received and keep it in file. The general manager shall also
file the purchase orders.
Accountant
The accountant shall monthly reconcile the purchase orders, suppliers invoice and
receiving reports. He shall then record the purchase and cash disbursement.
Office Personnel
The office personnel shall prepare the monthly bank reconciliation.
Records and Documents

Receiving reports, purchase orders, and sales invoices should be prenumbered.
Physical controls must also be provided to prevent unauthorized access to accounting
records and source documents.
Controls on Payroll Fund

The payroll fund shall be under the custody of the general manager. Only payments
for the wages of farmers and packer shall be taken out of the fund. The payroll shall be
prepared by the farm supervisor who is in charge of the farmers and packer. Each
disbursement must be accompanied with adequate supporting documents. For instance, the
farmers and packer must sign a document or pay slip signifying their receipt of the wage
and the wage must be personally received by them. The fund must be kept in a safe place.
Also, surprise payroll fund counts must be conducted by the accountant at least once a
month. He must also be speculative of this account upon recording of replenishment since
with this, it is also the general manager that signs the replenishment check.
Controls on Petty Cash Fund
The petty cash fund for the Davao office is under the custody of the office personnel.
On the other hand, the petty cash fund for farm expenses is under the custody of the farm
supervisor. Every disbursement must be made with sufficient supporting documents such
as receipts. The documents and the remaining currency and coins must be kept safe in a
box or other similar container. Only minor expenses shall be paid out of the funds. Also,
surprise petty cash counts must be conducted by the accountant at least once a month.
Replenishment of the fund shall be made through checks.
V. Socio-economic Study
The feasibility study is not just conducted to determine the market, technical, and financial
viability of creating an organic lettuce farm but also to ascertain the effects it will have on the
stakeholders to be affected. The main factor to be considered in this study is the community
background and how the project will affect employment, income and the well-being of the
stakeholders.
Employment and Income
As per the community profile of Barangay Buda made by the Social Work department of
Ateneo de Davao University (Ledesma & Roque, 2013), the incidence of unemployment at
Barangay Buda is high with a 34% unemployment rate. Out of the available workforce of 875,
only 577 have forms of employment with 438 of them identifying themselves as self-employed.
Majority of them get their primary source of income from vegetable farming while some are
engaging in small businesses such as sari-sari store, karinderya, and videoke bars.
Although the place has an established cooperative, namely Buda Farmers Cooperative, it
only has a total number of 60 members and is experiencing internal problems. Moreover, the
income-generating activity of the existing cooperative is selling vegetables and other
merchandise in the mini-market it built on which majority of the members is not participating
into and the proceeds are small. Its main activity is just channeling the grants and donations
extended by government and non-government agencies.
The problem of insufficient income really affects the families of the barangay as oftentimes
they are forced to acquire loans from lending institutions. However, it only worsened their initial
position as the mode of payment of the loan is weekly with an interest of 2% per month.
The establishment of an organic lettuce farm controlled by a cooperative at Barangay Buda

will not just affect the lives of the workers it will hire but also the prospective members of the
cooperative. The study aims to hire seven people for the operations of the organic lettuce farm.
Although it may be initially seen to have a small effect on the employment and income of people
in the community, this is where the benefits of a cooperative come in. Being under a cooperative,
the main goal is the creation of shared-value and equitable distribution of wealth among its
members based on their interest on the cooperative. Even though the farm employs only seven
people, the benefits will be shared to the prospective members. With a membership fee of 200
pesos and minimum subscription of 1,500 pesos on the shares of the coop to be a regular member,
the people in Buda can become part of a sustainable coop that can potentially improve their
quality of life. The payment scheme for a subscription of one share is at 25% quarterly in order
for the residents to have more time to save money for their payment.
Moreover, the cooperative accumulates fund for the development of the life and well-being
of the members. Namely the Coop. Education & Training Fund and Community Development
Fund.
Nexus for Grants and Donations
Being a cooperative, it will be open for grants and donations that government agencies
and non-government organizations will be able to extend. Buda, being an agricultural sector,
and the cooperative identifying itself as an agribusiness cooperative it will enjoy a direct
partnership with the Department of Agriculture arm such as in the allocation of fertilizers and
other agricultural products. Although some might not be used directly in the operations of the
organic farm, these will be channeled directly to its members. Moreover, should any grants and
donations be granted to the cooperative, these would be directly used to improve the social and
economic development of its members.
VI. Organization and Management Study

A. Basic Consideration in Forming the Organization
In forming the organization, various aspects and angles are needed to be considered such as:
1. Number of Members
In choosing the organizational form and structure of the organization, it is
important to consider the number of people it would support since it will dictate the
organizational rules and methodology of profit sharing.
2. Goals in venturing the business
The goals of the business basically define the destination where the owners want
to be in the future and give a sense of direction for the whole organization. These exude
what qualities of leadership and membership that the organization demands. Furthermore,
these goals define the means of achieving them. It is also a factor in choosing the right
organizational structure in which the goals may be structurally supported and fulfilled.
3. Industry
The nature of the industry would help identify the positions needed in order to
sustain the operations of the firm and also counter the malpractices which are prevalent in
a certain market system such that of the middle man system in the agricultural industry of
the Philippines. The type of industry upon which the organization would operate will also
determine the level of knowledge and experience to be required from every officer and
laborer hired by the organization. A specific industry may also entail definite legal
requirements for registration and specific accounting rules to be applied in accounting
and auditing for the operations of the organization.
4. Government Support and Incentives

The government support, through its legislations and programs, to the members of
a certain industry will affect the thriving of the business thus agricultural programs and
legal benefits of the government must be identified and sought in order to maximize the
benefits that the organization may acquire.
5. Financial Capacity of Members
The financial capacity of members will determine how much capital from external
sources should be sourced and their ability to provide the initial support needed in
starting the business.
6. Financing Opportunities
Several financing sources such as loans from banks, grants, government subsidy,
etc. should be identified and sought since majority of the capital will be sourced
externally from cooperative members.
7. Management Prowess
One key to a well-functioning organization is choosing honest, reliable and wellinformed management personnel. Since the small nature of the business demands some
multi-tasking and fusion of different roles into one person, it is essential that the persons
hired to manage the organization are willing and able to perform various tasks necessary
to the operation, and be trusted to handle its assets such as cash. Moreover, it is also in
the best interest of the organization to hire dedicated individuals who are willing to exert
much effort necessary for the furtherance of the organization.Since the project involves
organic farming, the management should ideally have a broad knowledge and experience
on organic farming methodology and other related topics.
8. Availability and Quality of Labor
The availability of workers who has knowledge on farming and has the
willingness to learn the methodologies of organic farming is important in the operations
of the farm since they would be on direct contact of the organic farming and growing
process that requires a distinct procedure. The truthfulness of the farms organic branding
relies on how well the laborers have applied the proper way of organic farming.
B. Form of Ownership
Project Aniwag is organized under a cooperative form of business structure mainly
because of the tax-exemption that this type of business establishment enjoys. Moreover,
members of cooperative have greater control of the operations, unlike in other forms of
business organizations wherein they are led by absentee-investors. Shareholders have equal
voting powers, their shareholdings notwithstanding. It is also inexpensive to organize
compared to others and necessitates active participation of all its members and shareholders.
Lastly, establishing Project Aniwag in a cooperative form makes it highly possible to
accomplish one of its long-term objectives which is to fully realize social entrepreneurship
wherein people invest in people, work in one common goal, and achieve mutual economic
success and prosperity between and among its members.
Documents needed for Primary Cooperatives

The following are to be submitted in four (4) copies except for the first item:
Cooperative Name Reservation Notice
Economic Survey, duly notarized
Articles of Cooperation, signed by all co-operators at each and every page.
Cooperative By-Laws
Notarized Acknowledgement and Treasurers Affidavit
Surety Bond of Accountable Officers
Certification of PMES from duly accredited institution signed by the Interim Chairman,
validated by the authority
Undertaking to submit Reportorial Requirements
Undertaking to comply with other requirements as prescribed by other regulatory agency,

whenever applicable
Undertaking to Change Name
Undertaking to comply with the auditing and accounting standards prescribed by the
authority
Favorable endorsement/written verification/authority/pre-feasibility study, if applicable
TIN of all members, applicable to workers, labor service, small scale mining coops
Registration fee
Steps in Registering a Proposed Primary Cooperative

1. Get things started by having at least 15 members and a total paid-up capital of Php
15,000.
2. Request for a Pre-Membership Education Seminar (PMES) at CDA office or any field
office in the region. It must be requested at least ten (10) days before the scheduled date.
3. Request for a Cooperative Name Reservation at the Regional office, to wit:
*For 30 days -
pay Php 100
*For 60 days -
pay Php 200
*For 90 days -
pay Php 300
The name must be in accordance with the economic activity the proposed cooperative is
engaged in.
4. Prepare and comply the registration documents presented above in four (4) copies
5. Submit the Registration fee to CDA Regional Office. The Authority has sixty (60) days
to act on the documents. Officers will be notified when corrections are necessary.
6. Pay the Registration fee once the documents are all in order. The minimum registration
fee is Php 500 or 1/10 (1%) of the Authorized Capital, whichever is higher.
BIR Requirements for Tax Exemption

The following are to be submitted to BIR in four copies:
Certificate of BIR Registration
Certificate of Good standing
Certified True Copy of Articles of Cooperation and By-laws
Certified True Copy of Registration to CDA
Certified True Copy of Audited Financial Statements (for renewal purposes)
Tax-exemption is good for 5 years only, to be renewed prior to expiration date. The
taxes exempted for those transacting with their members only, as stated in Revenue
Regulations No. 20-01, include:
a. Income tax on income from operations
b. Value-added tax, subject to certain conditions
c. 3% percentage tax
d. Donor's tax subject to certain limitations
e. Excise tax
f. Documentary stamp tax (DST)
g. Annual registration fee of P500.00
In the case of Aniwag Cooperative which may transact with both members and nonmembers, the taxability of its transactions depends on whether or not the accumulated
reserves and undivided net savings (ARUNS) exceeds P10 million. If the ARUNS is within
the P10 million threshold, the cooperative could enjoy the same incentives as cooperatives
dealing with members only. (See Appendix 6.1 to 6.7 for the necessary documents that the
entity shall comply with).
C. Organizational Chart
GENERAL
ASSEMBLY
Election Committee (3)
Board of Directors (7)
Audit Committee (3)
Secretary (1)
Treasurer/General
Manager (1)
Office Personnel (1)
Farm Supervisor (1)
Contractual Farmers (2)
Driver/Collection
Officer (1)
Contractual Packer (1)
* The Secretary and Treasurer should not be members of the board of directors according to
Article 43 Chapter 4 of R.A.6938.
D. Officers and Key Personnel

1. Board of Directors
The Board shall compose of seven members elected by the General Assembly.
The reason behind the odd number of board members is to establish an easier way to
arrive at a board decision through the reduced probability of reaching a tie. They shall
serve for a term fixed in the by-laws but should not exceed two (2) years. No director
shall also serve more than three (3) consecutive terms. Within 10 days after their election,
the members of the Board shall conduct a meeting in order to elect among themselves a
chairperson and a vice-chairperson.
The Board shall have the following responsibilities in coherence with R.A. 9520:
provide general policies and strategic plan for the cooperative especially for
possible farm expansion or venturing on new varieties of lettuce and/or vegetables
define the organizational and operational structure of the cooperative
set operational policies and procedures, and serve as a monitoring body to ensure
its implementation
reviews the Annual Plan and Budget, and channels recommendations to the
General Assembly for approval
reviews the qualifications of outsourced bookkeeper/accountant and endorse

him/her to the General Assembly for approval
appoint members of certain committees which require the approval of the Board
as stated by law or in the by-laws
declare the members who are entitled to vote
settle election related cases concerning the Election Committee
perform functions stated in the by-laws and those authorized by the General
Assembly
a. Chairperson
The chairperson is tasked to preside every meeting of the Board of Directors and
the General Assembly. He/she also sets the agenda upon which meetings are called.
He/she may also perform other functions with the authority of the Board of Directors
or the General Assembly such as signing contracts, cooperative agreements,

certificates and other documents.
b. Vice-chairperson
The vice-chairperson shall assume the responsibilities of the chairman upon
his/her absence. He/she shall also perform tasks which are delegated by the Board of
Directors.
2. Audit Committee
The audit committee is composed of three (3) members elected by the General
Assembly. They aretasked to hire the bookkeeper or the accountant assigned for the
accounting role and also the external auditor who shall conduct a year-end audit in
compliance to Philippine Cooperative Code of 2008 (RA 9520). They shall monitor the
operational performance of the different responsibility centers and the control systems of
the cooperative with the aid of outsourced bookkeeper/accountant and auditor who shall
directly report to them. They shall give recommendations to the Board of Directors and
the General Assembly in relation to certain findings discovered from accounting records
or audit reports furnished by hired bookkeeper/accountant/auditor.
3. Election Committee
The election committee is composed of three (3) members elected by the General
Assembly. They shall have a term of one (1) year and must serve only until a successor
has been elected. They shall choose among themselves a chairman and a secretary within
10 days after their election. A member of the election committee cannot be a member of
the Board or any other committees. The committee has the responsibility to create and
enforce election rules and regulations, and shall also conduct the election process,
canvass the votes and certify the candidates with the highest votes who shall assume
respective positions. They shall also be the deciding body tasked to resolve electoral
complaints.
4. Secretary
The secretary shall perform the following tasks:
keep and update the registry of the members and the directors
issue and certify the list of members who are in good standing with the cooperative
and are entitled to vote as decided by the Board of Directors
record, prepare and keep the minutes of the meetings of the Board of Directors and
the General Assembly
communicate to the General Manager the decisions arrived at the meetings of the
Board of Directors for implementation
prepare and issue share certificates
disseminate notice for Board or General Assembly meetings and ascertain that the
quorum is reached for the respective meetings
keep copies of treasurers reportand the financial statements produced by the
outsourced bookkeeper/accountant for archiving purposes
keep and maintain the Share and Transfer Book of the cooperative
other tasks authorized by by-laws and the General Assembly
5. General Manager/Treasurer
The functions of general manager and treasurer are fused to a single person.
As a treasurer, the hired individual shall perform the following tasks:
deposit all cash collections and withdraw cash needed in accordance to the policies
set by the Board of Directors
forward all supporting documents such as receipts from purchases to the office
personnel
maintain the petty cash fund
maintain a record of the cooperatives cash transactions
safeguard important legal and other documents of the cooperative
As a general manager, the hired individual shall perform the following tasks:
oversee the day-to-day operations of the farm from purchasing to farming to logistics
to cash management
formulate, in coordination with the other key personnel, the annual and medium term
development plans, production schedules for farming, various projects and programs,
etc. to be approved by the Board of Directors and ratified by the General Assembly
ensure that the farm follows the organic method of farming
formulate promotional activities to expand the customer base of the organic farm
authorizes the outlay of cash such as those intended for payroll
reconciles the summary provided by the collection officer, the copy of all the sales
invoices issued, and the customer checks remitted by the collection officer
Furthermore, to be qualified for the positions, he or she must have:

1. Technical knowledge on organic farming especially on lettuce production;
2. Excellent leadership skills and significant management experience in the
agribusiness industry;
3. A financial qualification or, at least, relevant experience in dealing with sums of
money, financial control and budgeting (a degree in finance or accounting is a plus);
4. Effective communication and interpersonal skills;
5. The ability to make sound decisions and to ensure decisions are taken;
6. Strong attention to detail;
7. Time-management and organizational skills.
6. Office Personnel
The office personnel, who shall be based in the DCCCII Bldg., is tasked to handle
customer complaints and supplier concerns. He/she is in charge with sales generation and
advertising schemes. He/she shall also keep the supporting documents forwarded by other
officers or employees which, in turn, would be forwarded to the outsourced bookkeeper/
accountant. The petty cash fund for Davao office would be under his/her custody. He/she
is also tasked to prepare the monthly bank reconciliation.
In addition, to be qualified for the position, he or she must have:
2. A wide range of essential, organizational and technical skills. These skills include
planning, organizing, scheduling;
3. Good knowledge of standard office productivity programs particularly Microsoft

Office Programs such as Word, Excel, PowerPoint and Access
4. Strong attention to detail;
5. A professional work ethic;
6. The capacity to work with minimal supervision.
7. Driver/Collection Officer
The driver/collection officer shall perform the following tasks:
deliver the products to customers and collect payments (in check)
forward daily collections to the general manager for deposit
forward all supporting documents such as receipts from purchases to the office
personnel
serve as messenger
other tasks authorized or assigned by the general manager
Moreover, to be qualified for the position, he or she must have:
2. Knowledge of office practices and procedures and record keeping practices;
3. Time-management and organizational skills;
4. A professional work ethic;
5. The capacity to work with minimal supervision.
8. Farm Supervisor
The farm supervisor shall perform the following tasks:
employ the contractual workers for the farm which would require the final approval
of the general manager
serves as the custodian for the cash on hand for payment of the wages of farmers and
packer and other relevant expenses
oversee the planting, growing and harvesting process and implement the production
schedule formulated by the general manager
instruct and train the hired farmers towards the proper organic farming process
ascertain the quality of harvested crops
ensure the proper storage of harvested crops
ensure the proper composting of rejected crops
ensure the proper usage of the UD-arborloo toilet
relay to the general manager relevant concerns such as procurement of farming
supplies, pick-up of harvested crops, etc.
Additionally, to be qualified for the position, he or she must have:
1. Technical knowledge on organic farming especially on lettuce production;
2. Excellent leadership skills;
3. Time-management and organizational skills, including production planning,
scheduling and staffing;
4. Ability to multi-task without losing sight to details;
6. Ability to anticipate and adjust to changing conditions;
7. The desire to work toward targets;
8. The capacity to work with minimal supervision;
9. Contractual Farmers
The contractual farmers are tasked to plant, apply soil fertilizers and other soil
conditioning agents, check for weeds or any pests which may harm or destroy the crops,
transfer rotten or commercially unacceptable crops to the composting pit and harvest the
fully-grown vegetables. They shall also do the errands given by the farm supervisor in
relation to farm operation. Farmers shall be contracted for a period of three months.
The job qualifications for the famers are as follows:
1. Must have technical knowledge on organic farming especially on lettuce production;
2. Has the ability to multi-task without losing sight to details;
3. Has the ability to anticipate and adjust to changing conditions;
4. Must have the desire to work toward targets;
5. Must have the capacity to work with minimal supervision;
6. Importantly, he or she must be hardworking, responsible, diligent, and patient.
10. Contractual Packer

The contractual packer is tasked to cut the lettuce into commercially-desired form
then subsequently pack these. He/she may also do other errands which the farm
supervisor may command.
The job qualifications for the packer are as follows:
1. Responsible, hardworking and goal-oriented;
2. Has the ability to multi-task without losing sight to details;
3. Must have the capacity to work with minimal supervision.
E. Project Schedule
Aug-14
ACTIVITIES
Sep-14
4
Oct-14
4
Nov-14
4
Dec-14
4
Jan-15
4
Feb-15
4
Mar-15
4
Technical Research
- location/ site visit
- farm supplies and equipment
- organic farming methodology
- soil analysis
Economic and Financial Study
Formation of the Cooperative
organizing a core group
- recruitment of members
- pre-membership seminar
- first general assembly to tackle final list of
members, cooperative form and name, and
election of members of the Board and the
Election Committee
Prepare and submit documents required for
registration to Cooperative Development
Authority (CDA)
Scout and hire officers, personnel and
contractual workers simultaneously with
passing SSS, Pag-IBIG and PhilHealth
requirements
Canvass and purchase supplies and
equipment needed for land and bed
preparation, planting and growing the
vegetables
Register with the Bureau of Internal Revenue
(BIR) and get other necessary permit/s
Canvass and purchase furniture, fixtures and
equipment for office at DCCCII
Land Preparation - Plowing
Construct farm building, toilet, supervisor's
quarter and prepare composting area
Land Preparation - Rest & Harrowing

vegetables
Aug-14

ACTIVITIES
Sep-14
4
Oct-14
4
Nov-14
4
Dec-14
4
Jan-15
4
Feb-15
4
Mar-15
4
Technical
Research
Canvass and
purchase furniture, fixtures and
-equipment
location/ site
visit at DCCCII
for office
- farm supplies and equipment
Land
Preparation
Plowing
- organic
farming -methodology
- soil analysis

quarter
and
prepare
composting
Economic
and
Financial
Study area
Land
Preparation
- Rest & Harrowing
Formation
of the Cooperative
organizing a core group

- recruitment of members
- pre-membership
seminar
Bed
Preparation and
purchase of vegetable
seeds
- first general assembly to tackle final list of
members, cooperative form and name, and
Sowing
election of members of the Board and the
Election
Committee
Transplanting and Waiting Period
Prepare
submitand
documents
required
Canvass,and
purchase
register to
Land for
registration
to
Cooperative
Development
Transportation Office (LTO) second-hand
Authority (CDA)
multicab
Scout
and
hirepurchase
officers, personnel
Canvass
and
furnitures, and
tools and
contractual workers
simultaneously
with
equipments
necessary
for storage, packing
passing
SSS, Pag-IBIG and PhilHealth
and delivery
requirements
Initial harvest and delivery
Canvass and purchase supplies and

vegetables
The project schedule shows the chronological order and estimated duration of major activities that must be done to form the

cooperative, establishing its legal identity and make the organic farm business operational. The first row shows the month and the year
Canvass and purchase furniture, fixtures and
equipment
for office
at DCCCII
upon
which
the specific activities
ought to occur. The second row indicates the certain week of a month where an activity would take
place. The schedule features the activities from the conduct of the feasibility study to the first harvest and delivery of produced lettuce.

quarter and prepare composting area
Land Preparation - Rest & Harrowing
Bed Preparation and purchase of vegetable
Appendices
Appendix 2.1 - Computation Of Projected Population
Formula:
where:
P = Future Population
= Present Population
e = 2.718281828
k = population growth rate
t
= number of years in which the growth would be measured
Computation for year 2009 projected population:

Available Information:
2007 Total Actual Survey, NSO = 1,363,337

Average Annual Growth Rate, 2000-2007 = 2.41%
1,430,659


1,483,906


1,519,342


1,555,625
Appendix 2.2 - Detailed Computation for Past Consumption
Appendix 2.3 Survey Questionnaire
Appendix 2.4 Summarized Survey Results

ICEBERG
Name of Establishment
Weekly Demand (in kg)
Delivery Location
Akiko Japanese Restaurant
2.5
Victoria Plaza
Bigby's - Abreeza Branch
27.5
Abreeza
Bigby's - SM City Davao Branch
40
SM City Davao
Bistro Rosario
1.5
F. Torres
Caf Laguna
Abreeza
EMS Pasta & Rolls
3.5
F. Torres
Fagioli
Pryce Business Park
Grand Emperor
Victoria Plaza
Nongki Japanese Restaurant
F. Torres
10 Pancake House - G Mall Branch
3.5
G Mall
11 Pepper Lunch
7.5
G Mall
12 Prawn House
13 Sarung Banggi
2.5
Victoria Plaza
F. Torres
14 Seafood TW
Victoria Plaza
15 Shabu shabu
F. Torres
7.5
F. Torres
16 Trellis n' Vines

Total Weekly Demand for Iceberg
131
ROMAINE
Name of Establishment
Weekly Demand (in kg)
Delivery Location
Bigby's - Abreeza branch
30
Abreeza
Bigby's - SM City Davao branch
15
SM City Davao
Echostore
Diversion Road
EMS Pasta & Rolls
3.5
F. Torres
Italiannis
30
Abreeza
Miso Restaurant
F. Torres
Yellowcab - SM City Davao branch
SM City Davao
Akiko Japanese Restaurant
2.5
Victoria Plaza
Pancake House - G Mall branch
3.5
G Mall
Total Weekly Demand for Romaine
94.5
Appendix 2.5 Demand Projection
Year
Projected Demand
Growth Rate
Appendix 2.6 Computation of the Average Growth Rate in Demand

2015
6.43
2016
6.973
8.444790047
2017
7.516
7.787179119
2018
8.059
7.224587547
2019
8.601
6.725400174
Average Growth Rate
7.55
7.50%
Appendix 2.7 Computation of Forecasted Supply
Appendix 2.8 - Justification for Price Assumption

Supplier
Bemwa (Farmgate
Romaine
Iceberg
Ratio of Romaine
Decimal
to Iceberg
Equivalent
90
50
90:50
1.80
Dizon
242
135
242:135
1.79
Sweet Bee
242
135
242:135
1.79
Dole
385
320
385:320
1.20
Eden
103
190
130
190:130
1.46
150
100
150:100
1.50
Price)
Retail Price in Malls

(mall price)
Price in Bankerohan
(Bankerohan price)
The best ratio to follow as a multiplier to the price of iceberg lettuce and thus come up
with the romaine lettuce price is the 1.5 as it is the median of all the ratios identified.
Appendix 2.9 Computation of Projected Sales

Monthly Sales Breakdown - Year 1
Iceberg
Yield
Price/
Delivered
Sales
Kg
(Kg)
91.35
January
104.20
February
107.86
March
615.6
98.28 60,501.17
April
547.2
112.03 61,302.82
May
615.6
137.78 84,817.37
June
615.6
104.92 64,588.75
July
615.6
100.00 61,560.00
August
547.2
125.34 68,586.05
September
615.6
139.26 85,728.46
October
615.6
142.73 87,864.59
November
615.6
104.17 64,127.05
December
Annual
5403.6
113.99
Sales
Romaine
Yield
Delivered(
Kg)
410.4
364.8
410.4
410.4
410.4
364.8
410.4
410.4
410.4
Sales
137.02
156.29
161.79
147.42
168.04
206.67
157.39
150.00
188.01
208.88
214.09
156.25
3602.4
Yearly Sales Breakdown

Iceberg
Qty
Price/
Year
Yield
Sales
Qty (Kg)
Kg
(Kg)
5,403.60
639,076.25 3,602.40
2015
7,647.12 118.55
906,589.53 5,098.08
2016
8,220.65 123.30 1,013,567.09 5,480.44
2017
8,922.18 128.23 1,144,063.85 5,948.12
2018
9,499.99 133.36 1,266,881.83 6,333.33
2019
Kilos
2015
2016
2017
2018
2019
Price/
Kg
120
129
138.675
149.075625
160.2562969
Total Sales
60,501.17
61,300.99
84,817.37
64,592.86
61,560.00
68,586.05
85,724.35
87,862.54
64,125.00
121,002.34
122,603.81
169,634.74
129,181.61
123,120.00
137,172.10
171,452.81
175,727.12
128,252.05
170.99
1,278,146.57
Romaine
Price/
Kg
Total Sales
Sales
639,070.32
906,576.27
1,013,552.27
1,144,047.13
1,266,863.31
177.83
184.94
192.34
200.03
Heads
720
774
832.05
894.45375
961.5377813
1,278,146.57
1,813,165.80
2,027,119.36
2,288,110.98
2,533,745.14
Trays
5.625
6.046875
6.500390625
6.987919922
7.512013916
Appendix 3.1 Five-Year Production Schedule

Legend:
S = Sowing
T = Transplanting
H = Harvest
D = Delivery
M
Y = Yield
Under Y and YD=
TH
31-Ja n
15-Feb
01-Apr
02-Apr
M
04-Feb
19-Feb
05-Apr
06-Apr
TH
07-Feb
22-Feb
08-Apr
09-Apr
M
11-Feb
26-Feb
12-Apr
13-Apr
2015
TH
14-Feb
01-Ma r
15-Apr
16-Apr
M
18-Feb
05-Ma r
19-Apr
20-Apr
TH
21-Feb
08-Ma r
22-Apr
23-Apr
M
25-Feb
12-Ma r
26-Apr
27-Apr
YD = Yield Delivered
Iceberg Yield
Romaine Yield
Total Yield
TH
DM
28-Feb
15-Ma r
29-Apr
30-Apr 9
YD
648.00
432.00
1,080.00
615.60
410.40
1,026.00
576.00
384.00
960.00
547.20
364.80
912.00
615.60
410.40
1,026.00
18-Ma r
02-Apr
17-Ma y
18-Ma y
21-Ma r
05-Apr
20-Ma y
21-Ma y
25-Ma r
09-Apr
24-Ma y
25-Ma y
28-Ma r
12-Apr
27-Ma y
28-Ma y
S
T
H
D
01-Apr
16-Apr
31-Ma y
01-Jun
04-Apr
19-Apr
03-Jun
04-Jun
08-Apr
23-Apr
07-Jun
08-Jun
11-Apr
26-Apr
10-Jun
11-Jun
15-Apr
30-Apr
14-Jun
15-Jun
18-Apr
03-Ma y
17-Jun
18-Jun
22-Apr
07-Ma y
21-Jun
22-Jun
25-Apr
10-Ma y
24-Jun
25-Jun
29-Apr
14-Ma y
28-Jun
29-Jun
648.00
432.00
1,080.00
02-Ma y
17-Ma y
01-Jul
02-Jul
06-Ma y
21-Ma y
05-Jul
06-Jul
09-Ma y
24-Ma y
08-Jul
09-Jul
13-Ma y
28-Ma y
12-Jul
13-Jul
16-Ma y
31-Ma y
15-Jul
16-Jul
20-Ma y
04-Jun
19-Jul
20-Jul
23-Ma y
07-Jun
22-Jul
23-Jul
27-Ma y
11-Jun
26-Jul
27-Jul
30-Ma y
14-Jun
29-Jul
30-Jul 9
648.00
432.00
1,080.00
615.60
410.40
1,026.00
06-Jun
21-Jun
05-Aug
06-Aug
10-Jun
25-Jun
09-Aug
10-Aug
13-Jun
28-Jun
12-Aug
13-Aug
17-Jun
02-Jul
16-Aug
17-Aug
20-Jun
05-Jul
19-Aug
20-Aug
24-Jun
09-Jul
23-Aug
24-Aug
27-Jun
12-Jul
26-Aug
27-Aug
01-Jul
16-Jul
30-Aug
31-Aug
648.00
432.00
1,080.00
615.60
410.40
1,026.00
04-Jul
19-Jul
02-Sep
03-Sep
08-Jul
23-Jul
06-Sep
07-Sep
11-Jul
26-Jul
09-Sep
10-Sep
15-Jul
30-Jul
13-Sep
14-Sep
18-Jul
02-Aug
16-Sep
17-Sep
22-Jul
06-Aug
20-Sep
21-Sep
25-Jul
09-Aug
23-Sep
24-Sep
29-Jul
13-Aug
27-Sep
28-Sep
576.00
384.00
960.00
547.20
364.80
912.00
01-Aug
16-Aug
30-Sep
01-Oct
05-Aug
20-Aug
04-Oct
05-Oct
08-Aug
23-Aug
07-Oct
08-Oct
12-Aug
27-Aug
11-Oct
12-Oct
15-Aug
30-Aug
14-Oct
15-Oct
19-Aug
03-Sep
18-Oct
19-Oct
22-Aug
06-Sep
21-Oct
22-Oct
26-Aug
10-Sep
25-Oct
26-Oct
648.00
432.00
1,080.00
615.60
410.40
1,026.00
05-Sep
20-Sep
04-Nov
05-Nov
09-Sep
24-Sep
08-Nov
09-Nov
12-Sep
27-Sep
11-Nov
12-Nov
16-Sep
01-Oct
15-Nov
16-Nov
19-Sep
04-Oct
18-Nov
19-Nov
23-Sep
08-Oct
22-Nov
23-Nov
26-Sep
11-Oct
25-Nov
26-Nov
30-Sep
15-Oct
29-Nov
30-Nov
648.00
432.00
1,080.00
615.60
410.40
1,026.00
03-Oct
18-Oct
02-Dec
03-Dec
07-Oct
22-Oct
06-Dec
07-Dec
10-Oct
25-Oct
09-Dec
10-Dec
14-Oct
29-Oct
13-Dec
14-Dec
17-Oct
01-Nov
16-Dec
17-Dec
21-Oct
05-Nov
20-Dec
21-Dec
24-Oct
08-Nov
23-Dec
24-Dec
28-Oct
12-Nov
27-Dec
28-Dec
31-Oct
15-Nov
30-Dec
31-Dec 9
648.00
432.00
1,080.00
5,688.00
3,792.00
9,480.00
615.60
410.40
1,026.00
5,403.60
3,602.40
9,006.00
JULY
14-Ma r
29-Ma r
13-Ma y
14-Ma y
S
T
H
D
AUGUST
11-Ma r
26-Ma r
10-Ma y
11-Ma y
S
T
H
D
SEPTEMBER
07-Ma r
22-Ma r
06-Ma y
07-Ma y
S
T
H
D
OCTOBER
04-Ma r
19-Ma r
03-Ma y
04-Ma y
S
T
H
D
NOVEMBER
S
T
H
D
S
T
H
D
DECEMBER
JUNE
MAY
APRIL
DD
S
T
H
D
DD = Delivery Day
M = Monday
TH = Thursday
DM = Deliveries Made
S
T
H
D
03-Jun
18-Jun
02-Aug
03-Aug
02-Sep
17-Sep
01-Nov
02-Nov
29-Aug
13-Sep
28-Oct
29-Oct
M
04-Nov
19-Nov
03-Ja n
04-Ja n
TH
07-Nov
22-Nov
06-Ja n
07-Ja n
M
11-Nov
26-Nov
10-Ja n
11-Ja n
TH
14-Nov
29-Nov
13-Ja n
14-Ja n
M
18-Nov
03-Dec
17-Ja n
18-Ja n
2016
TH
M
21-Nov 25-Nov
06-Dec 10-Dec
20-Ja n
24-Ja n
21-Ja n
25-Ja n
TH
28-Nov
13-Dec
27-Ja n
28-Ja n
02-Dec
17-Dec
31-Ja n
01-Feb
05-Dec
20-Dec
03-Feb
04-Feb
09-Dec
24-Dec
07-Feb
08-Feb
12-Dec
27-Dec
10-Feb
11-Feb
16-Dec
31-Dec
14-Feb
15-Feb
19-Dec
03-Ja n
17-Feb
18-Feb
23-Dec
07-Ja n
21-Feb
22-Feb
26-Dec
10-Ja n
24-Feb
25-Feb
02-Ja n
17-Ja n
02-Ma r
03-Ma r
06-Ja n
21-Ja n
06-Ma r
07-Ma r
09-Ja n
24-Ja n
09-Ma r
10-Ma r
13-Ja n
28-Ja n
13-Ma r
14-Ma r
16-Ja n
31-Ja n
16-Ma r
17-Ma r
20-Ja n
04-Feb
20-Ma r
21-Ma r
23-Ja n
07-Feb
23-Ma r
24-Ma r
TH
DM
YD
30-Dec
14-Ja n
28-Feb
29-Feb
696.60
464.40
1,161.00
661.77
441.18
1,102.95
27-Ja n
11-Feb
27-Ma r
28-Ma r
30-Ja n
14-Feb
30-Ma r
31-Ma r 9
696.60
464.40
1,161.00
661.77
441.18
1,102.95
619.20
412.80
1,032.00
588.24
392.16
980.40
661.77
441.18
1,102.95
S
T
H
D
S
T
H
D
S
T
H
D
03-Feb
18-Feb
03-Apr
04-Apr
06-Feb
21-Feb
06-Apr
07-Apr
10-Feb
25-Feb
10-Apr
11-Apr
13-Feb
28-Feb
13-Apr
14-Apr
17-Feb
03-Ma r
17-Apr
18-Apr
20-Feb
06-Ma r
20-Apr
21-Apr
24-Feb
10-Ma r
24-Apr
25-Apr
27-Feb
13-Ma r
27-Apr
28-Apr
S
T
H
D
02-Ma r
17-Ma r
01-Ma y
02-Ma y
05-Ma r
20-Ma r
04-Ma y
05-Ma y
09-Ma r
24-Ma r
08-Ma y
09-Ma y
12-Ma r
27-Ma r
11-Ma y
12-Ma y
16-Ma r
31-Ma r
15-Ma y
16-Ma y
19-Ma r
03-Apr
18-Ma y
19-Ma y
23-Ma r
07-Apr
22-Ma y
23-Ma y
26-Ma r
10-Apr
25-Ma y
26-Ma y
30-Ma r
14-Apr
29-Ma y
30-Ma y
696.60
464.40
1,161.00
02-Apr
17-Apr
01-Jun
02-Jun
06-Apr
21-Apr
05-Jun
06-Jun
09-Apr
24-Apr
08-Jun
09-Jun
13-Apr
28-Apr
12-Jun
13-Jun
16-Apr
01-Ma y
15-Jun
16-Jun
20-Apr
05-Ma y
19-Jun
20-Jun
23-Apr
08-Ma y
22-Jun
23-Jun
27-Apr
12-Ma y
26-Jun
27-Jun
30-Apr
15-Ma y
29-Jun
30-Jun 9
696.60
464.40
1,161.00
661.77
441.18
1,102.95
619.20
412.80
1,032.00
588.24
392.16
980.40
696.60
464.40
1,161.00
661.77
441.18
1,102.95
696.60
464.40
1,161.00
661.77
441.18
1,102.95
696.60
464.40
1,161.00
661.77
441.18
1,102.95
619.20
412.80
1,032.00
588.24
392.16
980.40
696.60
464.40
1,161.00
8,049.60
5,366.40
13,416.00
661.77
441.18
1,102.95
7,647.12
5,098.08
12,745.20
JUNE
S
T
H
D
JULY
S
T
H
D
04-Ma y
19-Ma y
03-Jul
04-Jul
07-Ma y
22-Ma y
06-Jul
07-Jul
11-Ma y
26-Ma y
10-Jul
11-Jul
14-Ma y
29-Ma y
13-Jul
14-Jul
18-Ma y
02-Jun
17-Jul
18-Jul
21-Ma y
05-Jun
20-Jul
21-Jul
25-Ma y
09-Jun
24-Jul
25-Jul
28-Ma y
12-Jun
27-Jul
28-Jul
AUGUST
S
T
H
D
01-Jun
16-Jun
31-Jul
01-Aug
04-Jun
19-Jun
03-Aug
04-Aug
08-Jun
23-Jun
07-Aug
08-Aug
11-Jun
26-Jun
10-Aug
11-Aug
15-Jun
30-Jun
14-Aug
15-Aug
18-Jun
03-Jul
17-Aug
18-Aug
22-Jun
07-Jul
21-Aug
22-Aug
25-Jun
10-Jul
24-Aug
25-Aug
29-Jun
14-Jul
28-Aug
29-Aug
SEPTEMBER
S
T
H
D
02-Jul
17-Jul
31-Aug
01-Sep
06-Jul
21-Jul
04-Sep
05-Sep
09-Jul
24-Jul
07-Sep
08-Sep
13-Jul
28-Jul
11-Sep
12-Sep
16-Jul
31-Jul
14-Sep
15-Sep
20-Jul
04-Aug
18-Sep
19-Sep
23-Jul
07-Aug
21-Sep
22-Sep
27-Jul
11-Aug
25-Sep
26-Sep
OCTOBER
S
T
H
D
06-Aug
21-Aug
05-Oct
06-Oct
10-Aug
25-Aug
09-Oct
10-Oct
13-Aug
28-Aug
12-Oct
13-Oct
17-Aug
01-Sep
16-Oct
17-Oct
20-Aug
04-Sep
19-Oct
20-Oct
24-Aug
08-Sep
23-Oct
24-Oct
27-Aug
11-Sep
26-Oct
27-Oct
31-Aug
15-Sep
30-Oct
31-Oct
NOVEMBER
S
T
H
D
03-Sep
18-Sep
02-Nov
03-Nov
07-Sep
22-Sep
06-Nov
07-Nov
10-Sep
25-Sep
09-Nov
10-Nov
14-Sep
29-Sep
13-Nov
14-Nov
17-Sep
02-Oct
16-Nov
17-Nov
21-Sep
06-Oct
20-Nov
21-Nov
24-Sep
09-Oct
23-Nov
24-Nov
28-Sep
13-Oct
27-Nov
28-Nov
DECEMBER
MAY
FEBRUARY
588.24
392.16
980.40
MARCH
619.20
412.80
1,032.00
APRIL
JANUARY
DD
S
T
H
D
S
T
H
D
01-Oct
16-Oct
30-Nov
01-Dec
05-Oct
20-Oct
04-Dec
05-Dec
08-Oct
23-Oct
07-Dec
08-Dec
12-Oct
27-Oct
11-Dec
12-Dec
15-Oct
30-Oct
14-Dec
15-Dec
19-Oct
03-Nov
18-Dec
19-Dec
22-Oct
06-Nov
21-Dec
22-Dec
26-Oct
10-Nov
25-Dec
26-Dec
29-Oct
13-Nov
28-Dec
29-Dec 9
03-Aug
18-Aug
02-Oct
03-Oct
30-Jul
14-Aug
28-Sep
29-Sep
TH
05-Nov
20-Nov
04-Ja n
05-Ja n
M
09-Nov
24-Nov
08-Ja n
09-Ja n
TH
12-Nov
27-Nov
11-Ja n
12-Ja n
M
16-Nov
01-Dec
15-Ja n
16-Ja n
TH
19-Nov
04-Dec
18-Ja n
19-Ja n
2017
M
23-Nov
08-Dec
22-Ja n
23-Ja n
TH
26-Nov
11-Dec
25-Ja n
26-Ja n
M
30-Nov
15-Dec
29-Ja n
30-Ja n
03-Dec
18-Dec
01-Feb
02-Feb
07-Dec
22-Dec
05-Feb
06-Feb
10-Dec
25-Dec
08-Feb
09-Feb
14-Dec
29-Dec
12-Feb
13-Feb
17-Dec
01-Ja n
15-Feb
16-Feb
21-Dec
05-Ja n
19-Feb
20-Feb
24-Dec
08-Ja n
22-Feb
23-Feb
31-Dec
15-Ja n
01-Ma r
02-Ma r
04-Ja n
19-Ja n
05-Ma r
06-Ma r
07-Ja n
22-Ja n
08-Ma r
09-Ma r
11-Ja n
26-Ja n
12-Ma r
13-Ma r
14-Ja n
29-Ja n
15-Ma r
16-Ma r
18-Ja n
02-Feb
19-Ma r
20-Ma r
21-Ja n
05-Feb
22-Ma r
23-Ma r
TH
DM
YD
711.40
474.27
1,185.67
28-Dec
12-Ja n
26-Feb
27-Feb
665.64
443.76
1,109.40
632.36
421.57
1,053.93
25-Ja n
09-Feb
26-Ma r
27-Ma r
28-Ja n
12-Feb
29-Ma r
30-Ma r 9
748.85
499.23
1,248.08
711.40
474.27
1,185.67
665.64
443.76
1,109.40
632.36
421.57
1,053.93
711.40
474.27
1,185.67
S
T
H
D
S
T
H
D
S
T
H
D
01-Feb
16-Feb
02-Apr
03-Apr
04-Feb
19-Feb
05-Apr
06-Apr
08-Feb
23-Feb
09-Apr
10-Apr
11-Feb
26-Feb
12-Apr
13-Apr
15-Feb
02-Ma r
16-Apr
17-Apr
18-Feb
05-Ma r
19-Apr
20-Apr
22-Feb
09-Ma r
23-Apr
24-Apr
25-Feb
12-Ma r
26-Apr
27-Apr
S
T
H
D
01-Ma r
16-Ma r
30-Apr
01-Ma y
04-Ma r
19-Ma r
03-Ma y
04-Ma y
08-Ma r
23-Ma r
07-Ma y
08-Ma y
11-Ma r
26-Ma r
10-Ma y
11-Ma y
15-Ma r
30-Ma r
14-Ma y
15-Ma y
18-Ma r
02-Apr
17-Ma y
18-Ma y
22-Ma r
06-Apr
21-Ma y
22-Ma y
25-Ma r
09-Apr
24-Ma y
25-Ma y
29-Ma r
13-Apr
28-Ma y
29-Ma y
748.85
499.23
1,248.08
01-Apr
16-Apr
31-Ma y
01-Jun
05-Apr
20-Apr
04-Jun
05-Jun
08-Apr
23-Apr
07-Jun
08-Jun
12-Apr
27-Apr
11-Jun
12-Jun
15-Apr
30-Apr
14-Jun
15-Jun
19-Apr
04-Ma y
18-Jun
19-Jun
22-Apr
07-Ma y
21-Jun
22-Jun
26-Apr
11-Ma y
25-Jun
26-Jun
29-Apr
14-Ma y
28-Jun
29-Jun 9
748.85
499.23
1,248.08
711.40
474.27
1,185.67
06-Ma y
21-Ma y
05-Jul
06-Jul
10-Ma y
25-Ma y
09-Jul
10-Jul
13-Ma y
28-Ma y
12-Jul
13-Jul
17-Ma y
01-Jun
16-Jul
17-Jul
20-Ma y
04-Jun
19-Jul
20-Jul
24-Ma y
08-Jun
23-Jul
24-Jul
27-Ma y
11-Jun
26-Jul
27-Jul
31-Ma y
15-Jun
30-Jul
31-Jul
748.85
499.23
1,248.08
711.40
474.27
1,185.67
03-Jun
18-Jun
02-Aug
03-Aug
07-Jun
22-Jun
06-Aug
07-Aug
10-Jun
25-Jun
09-Aug
10-Aug
14-Jun
29-Jun
13-Aug
14-Aug
17-Jun
02-Jul
16-Aug
17-Aug
21-Jun
06-Jul
20-Aug
21-Aug
24-Jun
09-Jul
23-Aug
24-Aug
28-Jun
13-Jul
27-Aug
28-Aug
748.85
499.23
1,248.08
711.40
474.27
1,185.67
665.64
443.76
1,109.40
632.36
421.57
1,053.93
711.40
474.27
1,185.67
SEPTEMBER
S
T
H
D
OCTOBER
JUNE
AUGUST
S
T
H
D
S
T
H
D
NOVEMBER
S
T
H
D
S
T
H
D
DECEMBER
S
T
H
D
JULY
MAY
FEBRUARY
748.85
499.23
1,248.08
MARCH
M
02-Nov
17-Nov
01-Ja n
02-Ja n
APRIL
JANUARY
DD
S
T
H
D
S
T
H
D
03-Ma y
18-Ma y
02-Jul
03-Jul
01-Jul
16-Jul
30-Aug
31-Aug
05-Jul
20-Jul
03-Sep
04-Sep
08-Jul
23-Jul
06-Sep
07-Sep
12-Jul
27-Jul
10-Sep
11-Sep
15-Jul
30-Jul
13-Sep
14-Sep
19-Jul
03-Aug
17-Sep
18-Sep
22-Jul
06-Aug
20-Sep
21-Sep
26-Jul
10-Aug
24-Sep
25-Sep
29-Jul
13-Aug
27-Sep
28-Sep
02-Aug
17-Aug
01-Oct
02-Oct
05-Aug
20-Aug
04-Oct
05-Oct
09-Aug
24-Aug
08-Oct
09-Oct
12-Aug
27-Aug
11-Oct
12-Oct
16-Aug
31-Aug
15-Oct
16-Oct
19-Aug
03-Sep
18-Oct
19-Oct
23-Aug
07-Sep
22-Oct
23-Oct
26-Aug
10-Sep
25-Oct
26-Oct
30-Aug
14-Sep
29-Oct
30-Oct
748.85
499.23
1,248.08
02-Sep
17-Sep
01-Nov
02-Nov
06-Sep
21-Sep
05-Nov
06-Nov
09-Sep
24-Sep
08-Nov
09-Nov
13-Sep
28-Sep
12-Nov
13-Nov
16-Sep
01-Oct
15-Nov
16-Nov
20-Sep
05-Oct
19-Nov
20-Nov
23-Sep
08-Oct
22-Nov
23-Nov
27-Sep
12-Oct
26-Nov
27-Nov
30-Sep
15-Oct
29-Nov
30-Nov 9
748.85
499.23
1,248.08
711.40
474.27
1,185.67
07-Oct
22-Oct
06-Dec
07-Dec
11-Oct
26-Oct
10-Dec
11-Dec
14-Oct
29-Oct
13-Dec
14-Dec
18-Oct
02-Nov
17-Dec
18-Dec
21-Oct
05-Nov
20-Dec
21-Dec
25-Oct
09-Nov
24-Dec
25-Dec
28-Oct
12-Nov
27-Dec
28-Dec
665.64
443.76
1,109.40
8,653.32
5,768.88
14,422.20
632.36
421.57
1,053.93
8,220.65
5,480.44
13,701.09
04-Oct
19-Oct
03-Dec
04-Dec
TH
04-Nov
19-Nov
03-Ja n
04-Ja n
M
08-Nov
23-Nov
07-Ja n
08-Ja n
TH
11-Nov
26-Nov
10-Ja n
11-Ja n
M
15-Nov
30-Nov
14-Ja n
15-Ja n
TH
18-Nov
03-Dec
17-Ja n
18-Ja n
2018
M
22-Nov
07-Dec
21-Ja n
22-Ja n
TH
25-Nov
10-Dec
24-Ja n
25-Ja n
M
29-Nov
14-Dec
28-Ja n
29-Ja n
FEBRUARY
S
T
H
D
02-Dec
17-Dec
31-Ja n
01-Feb
06-Dec
21-Dec
04-Feb
05-Feb
09-Dec
24-Dec
07-Feb
08-Feb
13-Dec
28-Dec
11-Feb
12-Feb
16-Dec
31-Dec
14-Feb
15-Feb
20-Dec
04-Ja n
18-Feb
19-Feb
23-Dec
07-Ja n
21-Feb
22-Feb
MARCH
S
T
H
D
30-Dec
14-Ja n
28-Feb
01-Ma r
03-Ja n
18-Ja n
04-Ma r
05-Ma r
06-Ja n
21-Ja n
07-Ma r
08-Ma r
10-Ja n
25-Ja n
11-Ma r
12-Ma r
13-Ja n
28-Ja n
14-Ma r
15-Ma r
17-Ja n
01-Feb
18-Ma r
19-Ma r
APRIL
S
T
H
D
03-Feb
18-Feb
04-Apr
05-Apr
07-Feb
22-Feb
08-Apr
09-Apr
10-Feb
25-Feb
11-Apr
12-Apr
14-Feb
01-Ma r
15-Apr
16-Apr
17-Feb
04-Ma r
18-Apr
19-Apr
03-Ma r
18-Ma r
02-Ma y
03-Ma y
07-Ma r
22-Ma r
06-Ma y
07-Ma y
10-Ma r
25-Ma r
09-Ma y
10-Ma y
14-Ma r
29-Ma r
13-Ma y
14-Ma y
M
01-Nov
16-Nov
31-Dec
01-Ja n
715.56
477.04
1,192.61
679.78
453.19
1,132.97
20-Ja n
04-Feb
21-Ma r
22-Ma r
24-Ja n
08-Feb
25-Ma r
26-Ma r
27-Ja n
11-Feb
28-Ma r
29-Ma r 9
805.01
536.67
1,341.68
764.76
509.84
1,274.60
21-Feb
08-Ma r
22-Apr
23-Apr
24-Feb
11-Ma r
25-Apr
26-Apr
28-Feb
15-Ma r
29-Apr
30-Apr
805.01
536.67
1,341.68
764.76
509.84
1,274.60
17-Ma r
01-Apr
16-Ma y
17-Ma y
21-Ma r
05-Apr
20-Ma y
21-Ma y
24-Ma r
08-Apr
23-Ma y
24-Ma y
28-Ma r
12-Apr
27-Ma y
28-Ma y
31-Ma r
15-Apr
30-Ma y
31-Ma y 9
805.01
536.67
1,341.68
764.76
509.84
1,274.60
715.56
477.04
1,192.61
679.78
453.19
1,132.97
805.01
536.67
1,341.68
764.76
509.84
1,274.60
805.01
536.67
1,341.68
764.76
509.84
1,274.60
715.56
477.04
1,192.61
679.78
453.19
1,132.97
764.76
509.84
1,274.60
07-Apr
22-Apr
06-Jun
07-Jun
11-Apr
26-Apr
10-Jun
11-Jun
14-Apr
29-Apr
13-Jun
14-Jun
18-Apr
03-Ma y
17-Jun
18-Jun
21-Apr
06-Ma y
20-Jun
21-Jun
25-Apr
10-Ma y
24-Jun
25-Jun
28-Apr
13-Ma y
27-Jun
28-Jun
S
T
H
D
02-Ma y
17-Ma y
01-Jul
02-Jul
05-Ma y
20-Ma y
04-Jul
05-Jul
09-Ma y
24-Ma y
08-Jul
09-Jul
12-Ma y
27-Ma y
11-Jul
12-Jul
16-Ma y
31-Ma y
15-Jul
16-Jul
19-Ma y
03-Jun
18-Jul
19-Jul
23-Ma y
07-Jun
22-Jul
23-Jul
26-Ma y
10-Jun
25-Jul
26-Jul
30-Ma y
14-Jun
29-Jul
30-Jul
02-Jun
17-Jun
01-Aug
02-Aug
06-Jun
21-Jun
05-Aug
06-Aug
09-Jun
24-Jun
08-Aug
09-Aug
13-Jun
28-Jun
12-Aug
13-Aug
16-Jun
01-Jul
15-Aug
16-Aug
20-Jun
05-Jul
19-Aug
20-Aug
23-Jun
08-Jul
22-Aug
23-Aug
27-Jun
12-Jul
26-Aug
27-Aug
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
S
T
H
D
DECEMBER
JULY
04-Apr
19-Apr
03-Jun
04-Jun
S
T
H
D
S
T
H
D
YD
27-Dec
11-Ja n
25-Feb
26-Feb
S
T
H
D
S
T
H
D
S
T
H
D
S
T
H
D
DM
764.76
509.84
1,274.60
MAY
31-Ja n
15-Feb
01-Apr
02-Apr
TH
805.01
536.67
1,341.68
JUNE
JANUARY
DD
S
T
H
D
30-Jun
15-Jul
29-Aug
30-Aug
04-Jul
19-Jul
02-Sep
03-Sep
07-Jul
22-Jul
05-Sep
06-Sep
11-Jul
26-Jul
09-Sep
10-Sep
14-Jul
29-Jul
12-Sep
13-Sep
18-Jul
02-Aug
16-Sep
17-Sep
21-Jul
05-Aug
19-Sep
20-Sep
25-Jul
09-Aug
23-Sep
24-Sep
28-Jul
12-Aug
26-Sep
27-Sep
01-Aug
16-Aug
30-Sep
01-Oct
04-Aug
19-Aug
03-Oct
04-Oct
08-Aug
23-Aug
07-Oct
08-Oct
11-Aug
26-Aug
10-Oct
11-Oct
15-Aug
30-Aug
14-Oct
15-Oct
18-Aug
02-Sep
17-Oct
18-Oct
22-Aug
06-Sep
21-Oct
22-Oct
25-Aug
09-Sep
24-Oct
25-Oct
29-Aug
13-Sep
28-Oct
29-Oct
805.01
536.67
1,341.68
01-Sep
16-Sep
31-Oct
01-Nov
05-Sep
20-Sep
04-Nov
05-Nov
08-Sep
23-Sep
07-Nov
08-Nov
12-Sep
27-Sep
11-Nov
12-Nov
15-Sep
30-Sep
14-Nov
15-Nov
19-Sep
04-Oct
18-Nov
19-Nov
22-Sep
07-Oct
21-Nov
22-Nov
26-Sep
11-Oct
25-Nov
26-Nov
29-Sep
14-Oct
28-Nov
29-Nov 9
805.01
536.67
1,341.68
764.76
509.84
1,274.60
06-Oct
21-Oct
05-Dec
06-Dec
10-Oct
25-Oct
09-Dec
10-Dec
13-Oct
28-Oct
12-Dec
13-Dec
17-Oct
01-Nov
16-Dec
17-Dec
20-Oct
04-Nov
19-Dec
20-Dec
24-Oct
08-Nov
23-Dec
24-Dec
27-Oct
11-Nov
26-Dec
27-Dec
31-Oct
15-Nov
30-Dec
31-Dec
805.01
536.67
1,341.68
9,391.76
6,261.18
15,652.94
764.76
509.84
1,274.60
8,922.18
5,948.12
14,870.29
03-Oct
18-Oct
02-Dec
03-Dec
M
07-Nov
22-Nov
06-Ja n
07-Ja n
TH
10-Nov
25-Nov
09-Ja n
10-Ja n
M
14-Nov
29-Nov
13-Ja n
14-Ja n
TH
17-Nov
02-Dec
16-Ja n
17-Ja n
2019
M
21-Nov
06-Dec
20-Ja n
21-Ja n
TH
24-Nov
09-Dec
23-Ja n
24-Ja n
M
28-Nov
13-Dec
27-Ja n
28-Ja n
TH
DM
01-Dec
16-Dec
30-Ja n
31-Ja n 9
YD
865.38
576.92
1,442.31
822.11
548.08
1,370.19
769.23
512.82
1,282.05
730.77
487.18
1,217.95
769.23
512.82
1,282.05
730.77
487.18
1,217.95
822.11
548.08
1,370.19
S
T
H
D
05-Dec
20-Dec
03-Feb
04-Feb
08-Dec
23-Dec
06-Feb
07-Feb
12-Dec
27-Dec
10-Feb
11-Feb
15-Dec
30-Dec
13-Feb
14-Feb
19-Dec
03-Ja n
17-Feb
18-Feb
22-Dec
06-Ja n
20-Feb
21-Feb
26-Dec
10-Ja n
24-Feb
25-Feb
29-Dec
13-Ja n
27-Feb
28-Feb
S
T
H
D
02-Ja n
17-Ja n
03-Ma r
04-Ma r
05-Ja n
20-Ja n
06-Ma r
07-Ma r
09-Ja n
24-Ja n
10-Ma r
11-Ma r
12-Ja n
27-Ja n
13-Ma r
14-Ma r
16-Ja n
31-Ja n
17-Ma r
18-Ma r
19-Ja n
03-Feb
20-Ma r
21-Ma r
23-Ja n
07-Feb
24-Ma r
25-Ma r
26-Ja n
10-Feb
27-Ma r
28-Ma r
S
T
H
D
30-Ja n
14-Feb
31-Ma r
01-Apr
02-Feb
17-Feb
03-Apr
04-Apr
06-Feb
21-Feb
07-Apr
08-Apr
09-Feb
24-Feb
10-Apr
11-Apr
13-Feb
28-Feb
14-Apr
15-Apr
16-Feb
03-Ma r
17-Apr
18-Apr
20-Feb
07-Ma r
21-Apr
22-Apr
23-Feb
10-Ma r
24-Apr
25-Apr
27-Feb
14-Ma r
28-Apr
29-Apr
865.38
576.92
1,442.31
02-Ma r
17-Ma r
01-Ma y
02-Ma y
06-Ma r
21-Ma r
05-Ma y
06-Ma y
09-Ma r
24-Ma r
08-Ma y
09-Ma y
13-Ma r
28-Ma r
12-Ma y
13-Ma y
16-Ma r
31-Ma r
15-Ma y
16-Ma y
20-Ma r
04-Apr
19-Ma y
20-Ma y
23-Ma r
07-Apr
22-Ma y
23-Ma y
27-Ma r
11-Apr
26-Ma y
27-Ma y
30-Ma r
14-Apr
29-Ma y
30-Ma y 9
865.38
576.92
1,442.31
822.11
548.08
1,370.19
769.23
512.82
1,282.05
730.77
487.18
1,217.95
865.38
576.92
1,442.31
822.11
548.08
1,370.19
865.38
576.92
1,442.31
822.11
548.08
1,370.19
865.38
576.92
1,442.31
822.11
548.08
1,370.19
865.38
576.92
1,442.31
822.11
548.08
1,370.19
769.23
512.82
1,282.05
730.77
487.18
1,217.95
865.38
576.92
1,442.31
9,999.99
6,666.66
16,666.65
822.11
548.08
1,370.19
9,499.99
6,333.33
15,833.32
MAY
S
T
H
D
03-Apr
18-Apr
02-Jun
03-Jun
06-Apr
21-Apr
05-Jun
06-Jun
10-Apr
25-Apr
09-Jun
10-Jun
13-Apr
28-Apr
12-Jun
13-Jun
17-Apr
02-Ma y
16-Jun
17-Jun
20-Apr
05-Ma y
19-Jun
20-Jun
24-Apr
09-Ma y
23-Jun
24-Jun
27-Apr
12-Ma y
26-Jun
27-Jun
S
T
H
D
01-Ma y
16-Ma y
30-Jun
01-Jul
04-Ma y
19-Ma y
03-Jul
04-Jul
08-Ma y
23-Ma y
07-Jul
08-Jul
11-Ma y
26-Ma y
10-Jul
11-Jul
15-Ma y
30-Ma y
14-Jul
15-Jul
18-Ma y
02-Jun
17-Jul
18-Jul
22-Ma y
06-Jun
21-Jul
22-Jul
25-Ma y
09-Jun
24-Jul
25-Jul
29-Ma y
13-Jun
28-Jul
29-Jul
01-Jun
16-Jun
31-Jul
01-Aug
05-Jun
20-Jun
04-Aug
05-Aug
08-Jun
23-Jun
07-Aug
08-Aug
12-Jun
27-Jun
11-Aug
12-Aug
15-Jun
30-Jun
14-Aug
15-Aug
19-Jun
04-Jul
18-Aug
19-Aug
22-Jun
07-Jul
21-Aug
22-Aug
26-Jun
11-Jul
25-Aug
26-Aug
06-Jul
21-Jul
04-Sep
05-Sep
10-Jul
25-Jul
08-Sep
09-Sep
13-Jul
28-Jul
11-Sep
12-Sep
17-Jul
01-Aug
15-Sep
16-Sep
20-Jul
04-Aug
18-Sep
19-Sep
24-Jul
08-Aug
22-Sep
23-Sep
27-Jul
11-Aug
25-Sep
26-Sep
31-Jul
15-Aug
29-Sep
30-Sep
03-Aug
18-Aug
02-Oct
03-Oct
07-Aug
22-Aug
06-Oct
07-Oct
10-Aug
25-Aug
09-Oct
10-Oct
14-Aug
29-Aug
13-Oct
14-Oct
17-Aug
01-Sep
16-Oct
17-Oct
21-Aug
05-Sep
20-Oct
21-Oct
24-Aug
08-Sep
23-Oct
24-Oct
28-Aug
12-Sep
27-Oct
28-Oct
AUGUST
S
T
H
D
SEPTEMBER
S
T
H
D
OCTOBER
S
T
H
D
NOVEMBER
S
T
H
D
04-Sep
19-Sep
03-Nov
04-Nov
07-Sep
22-Sep
06-Nov
07-Nov
11-Sep
26-Sep
10-Nov
11-Nov
14-Sep
29-Sep
13-Nov
14-Nov
18-Sep
03-Oct
17-Nov
18-Nov
21-Sep
06-Oct
20-Nov
21-Nov
25-Sep
10-Oct
24-Nov
25-Nov
28-Sep
13-Oct
27-Nov
28-Nov
DECEMBER
JULY
S
T
H
D
JUNE
APRIL
FEBRUARY
TH
03-Nov
18-Nov
02-Ja n
03-Ja n
MARCH
JANUARY
DD
S
T
H
D
S
T
H
D
02-Oct
17-Oct
01-Dec
02-Dec
05-Oct
20-Oct
04-Dec
05-Dec
09-Oct
24-Oct
08-Dec
09-Dec
12-Oct
27-Oct
11-Dec
12-Dec
16-Oct
31-Oct
15-Dec
16-Dec
19-Oct
03-Nov
18-Dec
19-Dec
23-Oct
07-Nov
22-Dec
23-Dec
26-Oct
10-Nov
25-Dec
26-Dec
03-Jul
18-Jul
01-Sep
02-Sep
30-Oct
14-Nov
29-Dec
30-Dec
29-Jun
14-Jul
28-Aug
29-Aug
31-Aug
15-Sep
30-Oct
31-Oct
Appendix 3.2 Drip Irrigation System Cost Model

Item#
Qty
Unit
Description
U/P
1.00
PC
FERTILIZER INJECTOR
1.00
PC
1.00
Total
28,750.00
28,750.00
NIPPLE 1" M
16.50
16.50
PC
BALLVALVE 1" F
142.80
142.80
1.00
PC
1" TAGLINE FILTER
366.00
366.00
1.00
PC
NIPPLE 1"
16.50
16.50
1.00
PC
32X1" ELBOW MALE BEND
71.50
71.50
1.00
PC
32X32MM COMPRESSION ELBOW
100.80
100.80
1.00
ROLL
PE PIPE 32MM (1"X60M)
2,620.30
2,620.30
1,350.00
MTS.
IDIT DRIP 16-2.3-0.60, 200M/ROLL
12.90
17,415.00
10
3.00
PCS
SADDLE 32-3/4" F (SINGLE OUTLET)
65.00
195.00
11
3.00
PCS
PVC BALLVALVE 3/4" F
142.80
428.40
12
3.00
PCS
HEXAGON NIPPLE 3/4 X 3/4" M
18.80
56.40
13
3.00
PCS
ADAPTOR 20X3/4" M
32.50
97.50
14
10.00
PCS
PE COUPLING 20MM
44.20
442.00
15
17.00
PCS
END CAP 20MM
32.50
552.50
16
1.00
PC
SADDLE 32-1" F (SINGLE OUTLET)
65.00
65.00
17
1.00
PC
HEXAGON NIPPLE 1" M
16.50
16.50
18
1.00
PC
PVC BALLVALVE 1" F
151.20
151.20
19
1.00
PC
PE ELBOW 32X1" M
71.50
71.50
20
2.00
PCS
END CAP 32MM
42.30
84.60
21
6.00
PCS
START CONNECTOR 16MM
3.80
22.80
22
10.00
PCS
LINE END 16MM
12.50
125.00
23
1.00
LOT
INSTALLATION COST
10,500.00
10,500.00
24
1.00
UNIT
WATER PUMP 5 HP
56,000.00
56,000.00
TOTAL (Ex Davao): PHP
118,358.10
Appendix 3.3 Farm Area Technical Description
Appendix 3.4 Additional Details and Costing of the Farm Building
SUBJECT: SUMMARY COST ESTIMATES

ITEM ITEM DESCRIPTION
NO.
MATERIAL LABOR
COST, P
COST, P
TOTAL
COST, P
CONCRETE WORKS
20,850.00
10,425.00
31,275.00
II
MASONRY WORKS
7,515.00
2,630.25
10,145.25
III
STEEL WORKS
15,890.00
5,561.50
21,451.50
IV
ROOFING WORKS
12,790.00
4,476.50
17,266.50
PAINTING WORKS
10,000.00
5,000.00
15,000.00
VI
DOOR AND WINDOW
12,000.00
2,400.00
14,400.00
DIRECT COST
79,045.00
30,493.25
109,538.25
OVERHEAD, CONTINGENCIES,
MISC. (8%)
VAT (12%)
CONTRACTOR'S PROFIT (8%)
8763.06
TOTAL PROJECT COST
140,208.96
13144.59
8,763.06
Appendix 3.5 Technical Drawings and Costing of the Comfort Room (Arborloo Toilet)
Appendix 3.6 FIBECO - How To Apply For Electric Service

HOW TO APPLY FOR ELECTRIC SERVICE
1. An applicant must undergo Pre-Membership Education Seminar (PMES) which
is conducted every Friday from 9:00 to 11:30 am, except when scheduled
seminars falls on a holiday. Late consumers who exceed the 30 minutes allowance
are not accepted in the seminar.
2. Strictly no PROXY attendance. A Certificate of Attendance will be given to the
participants at the end of the seminar.
3. In the seminar, your will be told to have your house wiring materials estimated
and installed by a private or duly accredited FIBECO electrician. The Service Fee
charged by FIBECO for private or accredited electrician can be: Private Electrician
P350.00 FIBECO Accredited Electrician P100.00.
4. You will be given a Checklist of Requirements for Service Connection (forms
available at the complaints counter). Comply all the requirements indicated
therein, to wit;
Certificate of Residency (must be signed by the respective Barangay

Chairman in your area);
GIS Sketch (to be secured at GIS office, located at FIBECO main office);
Area Clearance/Certification from our area offices where you belong;
Sketch Plan/Locator
Map accomplished by electrician;
BAPA members are adviced to secure a clearance from their respective

chairman before they will be issued an area clearance;
Checklist of Requirements for Service Connection properly filled up and

signed by your electrician;
5. Proceed to our main office or area offices for filling of your

requirements/documents
(Source: http://www.kuryente.org.ph/electric-company/rates/96)
Appendix 4.1 Basis of Debt Borrowed
Basis for Long Term Borrowing

Property, Plant and Equipment (PPE)
Nursery/Greenhouses
Furniture, Fixtures, and Equipment
Less: Cash on Hand for January
Membership Fees
Installment Payment of Capital
PPE Cost which needs immediate financing
Amount To be Borrowed with Long-Term Debt
200,000.00
158,640.96
258,483.10
9,050.00
36,131.00
662,305.06
75,600.00
40,500.00
116,100.00
546,205.06
550,000.00
Basis for Short Term Borrowing

Cooperative Development Costs
Estimated Operating Costs from January to March
Salaries and Wages
Farm Manager
Farm Supervisor
Farmers
Professional Fees
Representation
Office Supplies
Communication
Rentals
Raw Materials Purchases
Other Farm Expenses
Total
Safety net
Approximate amount needed
Amount Borrowed with short-term loan
43,696.00
33,335.10
15,751.40
21,527.60
70,614.10
9,000.00
75,000.00
450.00
6,000.00
1,500.00
6,600.00
18,900.00
10,500.00
1,200.00
15,000.00
10,000.00
224,764.10
268,460.10
50,000.00
318,460.10
320,000.00
For Long-term Borrowing

DEVELOPMENT BANK OF THE PHILIPPINES (DBP)
SEED Organic Agriculture Program
Priority
Projects
Organic Rice, Muscovado Sugar and Organic Vegetables /

Processed Organic Vegetables (pickles, chunks, etc.)
Eligible
Borrowers
Individuals, Partnerships, Corporations or Cooperatives duly

registered with the Department of Trade and Industry / Securities
and Exchange Commission or Cooperative Development Authority
who own titled land or with tenurial arrangement on land suitable for
planting to organic crops.
Terms
Repayment based on the project cash flow or payback period as

determined by DBP but not to exceed 5 years inclusive of 3 years
grace period
Source: https://www.devbnkphl.com/devbanking.php?cat=108
For Short-term Borrowing
LANDBANK Agrarian Production Credit Program (APCP)
Rationale
The Agrarian Production Credit Program was developed pursuant
to the CARPER Law in partnership with the Department of
Agriculture (DA) and Department of Agrarian Reform (DAR)
Coverage
Nationwide
Eligible Borrowers
Cooperatives
Farmers Organizations
Rural Banks
Basic Policies
Available Credit
Short Term Loan Line
Facility
Term Loan
To finance the farm inputs in growing crops
Purpose
Working capital for agri-enterprise and livelihood projects
To purchase tools, equipment and machineries
Availability
Via 180-day Promissory Notes (PN) or depending on the term
of the loan
Interest Rate
Special Rate
Repayment Term
Based on crop cycle or cash flow
Assignment of Promissory Notes plus underlying collaterals
Collateral
Assignment of Crop Insurance
Chattel Mortgage on Object of Financing
Source: https://www.landbank.com/APCP
Appendix 4.2 Computation of Weighted Average Cost of Capital
Formula:
WACC = kd(D/V) + ke(E/V)
Where:
D/V is the term debt/total capitalization ratio; and

E/V is the equity/total capitalization ratio
kd = i
where i is the interest rate on long-term debt
Equity
Long-term Debt
Weighted Average Cost of Capital

2015
2016
2017
20.00
73.78
92.84
7.37
5.63
4.00
27.37 %
WACC
Longterm
Debt
Equity
96.84 %
2015
550,000.00
0.74
Weights
2016
440,000.00
196,428.53
0.26
341,696.32
746,428.53
Long-term
Debt
Equity
79.41 %
2018
111.73
2.4
2019
133.91
1.3
114.13 %
135.21%
0.56
2017
330,000.00
0.40
0.44
488,711.63
0.60
781,696.32
818,711.63
2018
220,000.00
0.24
110000
0.13
683,398.33
0.76
747,087.15
0.87
903,398.33
2019
857087.151
For Ke:
CPR1 = 0
ER1:
E0:
Interest on Share Capital

2015
2016
2017
2018
2019
Total Equity
80,333.24
373,769.24
505,002.39
673,103.34
818,285.37
2015
2016
2017
2018
2019
196,428.53
341,696.32
488,711.63
683,398.33
747,087.15
g2:
2015
2016
2017
2018
2019
ROE
1.17
1.98
1.74
1.64
1.47
x
x
x
x
x
Dividend Payout Ratio

(1
- 0.7)
=
(1
- 0.7)
=
(1
- 0.7)
=
0.7)
(1
=
(1
- 0.7)
=
Sustainable
Growth Rate
0.35
0.59
0.52
0.49
0.44
Appendix 4.3 Sowing Cost Schedule

Schedule of Costs For Sowing (Computation of Biological Asset at the End of the Month or Year)
Legend:
C = Capitalized
B = Balance, End
D = December
2015
Total Seeds Sowed for the Month

Seeds Currently Sowed
Monthly
Cost
January
1
1
C
Variable Cost Per Land Strip

Seeds
Iceberg
6
Romaine
5
Peat Moss
281
Fixed Costs
Depreciation - Trays
Depreciation - Benches
Depreciation -Hose
May
9
4
June
8
4
July
9
4
August
9
4
September
9
5
October
9
5
November
8
4
December
9
4
51
44
2250
51
44
2250
51
44
2250
51
44
2250
57
49
2531
25
22
1125
57
49
2531
25
22
1125
51
44
2250
25
22
1125
57
49
2531
25
22
1125
57
49
2531
25
22
1125
57
49
2531
32
27
1406
57
49
2531
32
27
1406
51
44
2250
25
22
1125
57
49
2531
25
22
1125
0
0
0
0
0
0
32
67
14
32
67
14
32
67
14
32
67
14
32
67
14
14
30
6
32
67
14
14
30
6
32
67
14
16
33
7
32
67
14
14
30
6
32
67
14
14
30
6
32
67
14
18
37
8
32
67
14
18
37
8
32
67
14
16
33
7
32
67
14
14
30
6
293
293
2457
2457
2457
2457
2750
1222
2750
1222
2457
1229
2750
1222
2750
1222
2750
1528
2750
1528
2457
1229
2750
1222
Variable Cost Per Land Strip

Seeds
Iceberg
0.0147
Romaine
0.0190
Peat Moss
281.25
105
5
C
2016
9
104
4
717
618
33,016
61
53
2,830
34
29
1,572
380
800
173
33
69
15
35,703
3,060
380.00
800.00
173.00
Total Sowing Cost - Biological Asset
April
9
4
6
5
281
Total Seeds Sowed for the Year

Seeds Sowed at Year-End
Yearly
Cost
Fixed Costs
Depreciation - Trays
Depreciation - Benches
Depreciation -Hose
March
8
4
6
5
281
32
67
14
Total Sowing Cost - Biological Asset
February
8
5
Sowing Cost of plants currently transplanted
2017
9
104
4
763
658
36,560
66
57
3,164
29
25
1,406
18
38
8
380
800
173
33
69
15
1,700
39,334
3,404
2018
9
104
4
820
707
40,874
71
61
3,537
32
27
1,572
15
31
7
380
800
173
33
69
15
1,513
43,755
3,786
2019
9
D
882
760
45,698
76
66
3,955
34
29
1,758
15
31
7
380
800
173
33
69
15
15
31
7
1,683
48,693
4,214
1,873
Appendix 4.4 Transplanting Cost Schedule

Schedule of Costs For Transplanting Phase (Computation of Biological Asset at the End of the Month or Year)
Legend: #M = No. of Strips Used during the Month

#D-M = No. of Days per Month
#ME = No. of Strips Being Used at Month End SU-M = Strips Used per Month
AL = Age in Lot (Days)
AC = Allocated Cost
2015
SU-M
#M
# ME
#D-M
SU-M #D-M
SU-M #D-M
SU-M #D-M
SU-M #D-M
SU-M #D-M
SU-M #D-M
SU-M #D-M
SU-M #D-M
SU-M #D-M
SU-M #D-M
4
28
13
31
22
30
22
31
21
30
22
31
22
31
21
30
21
31
22
30
22
31
4
13
13
13
13
13
13
12
13
14
13
February
March
April
May
June
July
August
September
October
November
December
Batch
AL
AC
AL
AC
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Sowing
TotalCost
Transplanting Cost
- Bio Asset
N/A
N/A
N/A
N/A
3,501
3,501
AL
30
30
30
30
28
25
21
18
14
11
7
4
-
AC
159
159
159
159
149
133
111
95
74
58
37
21
-
AL
31
31
31
31
28
24
21
17
14
10
7
3
-
AC
159
159
159
159
144
123
108
87
72
51
36
15
-
AL
30
30
30
30
30
26
23
19
16
12
9
5
2
AC
167
167
167
167
167
144
128
106
89
67
50
28
11
AL
31
31
31
31
29
26
22
19
15
12
8
5
1
AC
159
159
159
159
149
133
113
98
77
62
41
26
5
AL
31
31
31
31
29
25
18
15
11
8
4
1
-
AC
159
159
159
159
149
128
92
77
56
41
21
5
-
AL
30
30
30
30
27
24
20
17
13
10
6
3
AC
167
167
167
167
150
133
111
94
72
56
33
17
AL
31
31
31
31
30
27
23
20
16
13
9
6
2
AC
167
167
167
167
161
145
124
108
86
70
48
32
11
AL
30
30
30
30
30
29
25
22
18
15
11
8
4
1
AC
1,528
1,528
1,229
1,528
1,528
1,222
1,222
159
159
159
159
159
154
133
117
95
80
58
42
21
5
1,229
2,843
2,801
2,685
2,868
2,734
2,556
2,674
2,730
AL
AC
31
31
31
31
28
25
21
18
14
11
7
4
-
159
159
159
159
144
128
108
92
72
56
36
21
1,528
2,822
Number of Plots esed during the Month

Number of Plots with plants by the end of the month
Batch
2016
21
31
13
December
Age in
Allocated Cost
Lot(Days)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Sowing Cost
31
31
31
31
30
27
23
20
16
13
9
6
2
170
170
170
170
165
148
126
110
88
71
49
33
11
Total Transplanting Cost - Bio Asset
2015 Monthly
Fixed Costs (Monthly)
Depreciation - Irrigation
Depreciation - Tfilm
Depreciation - Mulch
Depreciation - Rain Shelter Pipes
Foliar
Total Transplanting Phase Cost
Monthly
2017
22
31
13
December
Age in
Allocated Cost
Lot(Days)
31
31
31
31
28
24
21
17
14
10
7
3
-
2018
22
31
13
December
Age in
Allocated Cost
Lot(Days)
1,360
1,891
2,104
166
166
166
166
160
144
128
107
91
69
53
37
16
2,341
2,842
3,218
3,508
3,809
2016 Total Cost
166
166
166
166
150
128
112
91
75
53
37
16
-
2017 Total Cost
31
31
31
31
29
25
22
18
15
11
8
4
1
169
169
169
169
158
137
120
98
82
60
44
22
5
2019
23
31
14
December
Age in
Allocated Cost
Lot(Days)
2018 Total Cost
31
31
31
31
30
27
24
20
17
13
10
7
3
-
2019 Total Cost
493.16
666.67
192.67
348.33
1,800.00
5,917.91
8,000.00
2,312.00
4,180.00
22,464.00
5,917.91
8,000.00
2,312.00
4,180.00
23,362.56
5,917.91
8,000.00
2,312.00
4,180.00
24,297.06
5,917.91
8,000.00
2,312.00
4,180.00
25,268.94
3,500.83
42,873.91
3,572.83
43,772.47
3,647.71
44,706.97
3,725.58
45,678.85
3,806.57
Appendix 4.5 Cooperative Development Cost
Particulars
Pre-Membership Education Seminar
Cooperative Name Reservation
Compliance with Registration Documents
Registration Fee
Business Permit
Opening of Book of Accounts
Processing of requirements to BIR for Tax exemption
Site Preparation*
Labor
Fuel
Flowering Plants
Total
Amount
8,000.00
100.00
3,000.00
500.00
4,000.00
500.00
1,000.00
15,300.00
1,296.00
10,000.00
43,696.00
*Site Preparation includes 1st and 2nd plowing, harrowing, bed preparation, compost
digging, landscaping(flowering plants)
Appendix 4.6 Basis for Subscribed/Paid-up Share Capital and Membership Fee
Composition of Membership Fee and Subscribed/Paid-up Share Capital

Population
Associate
Full-Time
Membership
Share
Members
Members
Fee
Capital
Annual
577
198
90
P 57,600 P 135,000
Employed
298
72
18
P 18,000
P 27,000
Unemployed
Total
270
108
P 75,600 P 162,000
Population of those who can apply to COOP:
(18-64)
(65 and over)
Total
901
50
951
Employed
139
Self-Employed 438 577

Unemployed
298
Total
875
OLD COOP
NEW COOP
Current Members 60
Authorized Capital Share 1,000,000
*Funded by DA through the Barangay
(2000 shares; 500 par)
Food Terminal
To be a Full-Time Member:
Membership Fee:
Ordinary Share - 1500 pesos or 3 shares
200 pesos (50% of Total employed and
(payment 25% quarterly)
30% of Total Unemployed)
(150% of 60(current members of
*main target for this are the Unemployed
existing coop) or 90 for employed, and

20% of those who became members for
unemployed or 18)
Appendix 4.7 Membership Application Process
A person qualified to become a member must:

1. Submit a written application on a form provided for the purpose to the board of directors
through the secretary of the cooperative;
2. Pay a membership fee, the amount of which is prescribed in the by-laws;
3. Subscribe to a minimum of shares of stock the amount of which is prescribed in the by-laws.
This may be payable in lump sum or in regular installments. However, the by-laws of the
cooperative may prescribe a fine on unpaid subscribed share capital subject to the guidelines
issued by the Cooperative Development Authority. In the absence of a provision in the bylaws or the membership or subscription agreement, the board of directors shall determine the
percentage of the due and unpaid subscription to be paid as the needs of the cooperative may
require and shall issue a call therefore.
4. Pay for at least 25% of his/her subscribed share capital.
An applicant shall be deemed a member after approval of his membership by the board of
directors and shall exercise the rights of members after having made such payments to the
cooperative in respect to membership or acquired interest to the cooperative as may be
prescribed in the by-laws. In case membership is refused or denied by the Board of
Directors, an appeal may be made to the general assembly and the latters decision shall be
final.
A member can increase his/her shareholdings through regular savings or by channeling
into the share capital a certain amount of his annual interest on capital and patronage refund.
General Manager
Farm Supervisor
Office Personnel
Contractual Farmer
Contractual Packer
Total
1
1
1
1
2
1
8
26
26
26
26
26
26
10,010.00
7,020.00
6,110.00
8,112.00
4,680.00
4,680.00
5.00
5.00
5.00
5.00
5.00
5.00
10,010.00
7,020.00
6,110.00
8,112.00
9,360.00
4,680.00
10,010.00
7,020.00
6,110.00
8,112.00
130.00
130.00
130.00
130.00
130.00
130.00
31,252.00
Appendix 4.8 Monthly Salaries and Wages Schedule
130.00
130.00
130.00
130.00
260.00
130.00
910.00
10,140.00
7,150.00
6,240.00
8,242.00
9,620.00
4,810.00
21,580.00
18,382.00
363.30
254.30
218.00
290.70
181.70
181.70
1,489.70
100.0
100.0
100.0
100.0
96.2
96.2
592.4
WORKING
DAYSand
perWages
MONTHSchedule 26.00
Monthly
Salaries
Selling and Admin Cost
Bio Asset or Product Cost
SALARIES & WAGES
No.
General Manager
Farm Supervisor
Office Personnel
Contractual Farmer
Contractual Packer
Total
1
1
1
1
2
1
8
WORKING DAYS per MONTH

Selling and Admin Cost
Bio Asset or Product Cost
10,140.00
7,150.00
6,240.00
8,242.00
9,620.00
4,810.00
21,580.00
18,382.00
363.30
254.30
218.00
290.70
181.70
181.70
1,489.70
100.00
100.00
100.00
100.00
96.20
96.20
592.40
Average
Daily Monthly
Working
Rate/
Rate/
Days/Mo
person person
nth
385.00
270.00
235.00
312.00
180.00
180.00
26
26
26
26
26
26
Monthly
Salary/
Person
10,010.00
7,020.00
6,110.00
8,112.00
4,680.00
4,680.00
COLA
5.00
5.00
5.00
5.00
5.00
5.00
TOTAL
MONTHLY
Total
SSS
HDM
13th Month
Salaries And
MONTHLY
COLA per Monthly
(Employe (Empl
Pay
Wages
SALARY
person
COLA
e Share) e Sha
10,010.00
7,020.00
6,110.00
8,112.00
9,360.00
4,680.00
10,010.00
7,020.00
6,110.00
8,112.00
31,252.00
130.00
130.00
130.00
130.00
130.00
130.00
130.00
130.00
130.00
130.00
260.00
130.00
910.00
10,140.00
7,150.00
6,240.00
8,242.00
9,620.00
4,810.00
21,580.00
18,382.00
26.00
l
SSS
HDMF PhilHealth
Salaries And
hly
(Employe (Employe (Employe
Wages
A
e Share) e Share) e Share)
.00
.00
.00
.00
.00
.00
.00
385.00
270.00
235.00
312.00
180.00
180.00
125.00
100.00
100.00
100.00
100.00
100.00
625.00
Total SSS,
TOTAL
HDMF,
TOTAL
SSS
HDMF PhilHealth
Social
Witholdin
MONTHLY
MONTHLY
PhH
DEDUCTIBL
(Employ (Employ (Employer
EC
Charges
g Tax
NET PAY
SOCIAL
Employee
ES
er Share) er Share)
Share)
/Person
CHARGES
Share
588.30
641.03 1,229.33 8,910.67 736.70 100.00
125.00
10.00 971.70
971.70
454.30
454.30 6,695.70 515.70 100.00
100.00
10.00 725.70
725.70
418.00
418.00 5,822.00 442.00 100.00
100.00
10.00 652.00
652.00
490.70
490.70 7,751.30 589.30 100.00
100.00
10.00 799.30
799.30
377.90
755.80 8,864.20 368.30
93.60
100.00
10.00 571.90 1,143.80
377.90
377.90 4,432.10 368.30
93.60
100.00
10.00 571.90
571.90
2,707.10
641.03
4,864.40
assumed that COLA is not part of basic pay
363.30
254.30
218.00
290.70
181.70
181.70
1,489.70
100
100
100
100
96
96
592
Appendix 6.1 Philippine Health Insurance Corporation (PhilHealth) Form
Appendix 6.2 Application for Certificate of Tax Exemption for Cooperatives Form
Appendix 6.3 Schedule of Documentary Requirements

DOCUMENTARY REQUIREMENTS
Basic Documentary Requirements [For Original Issuance of Certificate of Tax Exemption]
1
Certified True Copies of the Articles of Cooperation and By-Laws, as certified by the
Cooperative Development Authority (CDA) ;
2 Certified True Copy of the new Certificate of Registration issued by the CDA under the
new Cooperative Code, as certified by the CDA;
3 Certified True Copy of the current Certificate of Good Standing issued by the CDA,
effective on date of application; and
4 Certified True Copy of the BIR Certificate of Registration of the Cooperative.
Additional Documentary Requirements
1 Original Copy of Certification under Oath of the List of Cooperative Members with their
respective Taxpayer Identification Number (TIN) and their capital contributions prepared
by authorized official of the Cooperative. For the initial submission of this list of
cooperative members, those without TIN may temporarily use NSO number or other
government issued ID number or Community Tax Certificate Number.
Basic Documentary Requirements [For Renewal of Certificate of Tax Exemption]
1 Certified True Copy of the Certificate of Registration issued by the CDA under the new
Cooperative Code;
2 Certified True Copy of the Latest Articles of Cooperation and the Latest By-Laws of the
Cooperative;
3 Certified True Copy of the current Certificate of Good Standing from CDA, effective on
the date of application; and
4 Certified True Copy of Latest Financial Statements of the immediately preceding year
duly audited by a BIR accredited independent certified public accountant.
BIR FORM NO. 1945
Guidelines and Instructions
This form shall be duly accomplished in (3) three copies which must be signed by the
applicant who may either be the President or any responsible officer of the cooperative
authorized to file this application for and in behalf of the cooperative. All fields must be
mandatorily filled-up, if not applicable the words "NOT APPLICABLE" OR "NONE" should be
an appropriate response.
This form shall be submitted only to Revenue District Office of the Bureau of Internal
Revenue where the cooperative is registered together with all the necesary documents mentioned
in Part IV of this form.
Appendix 6.4 Certificate of Tax Exemption
Transacting With Members Only

BIR Form No. 2333-A
Bureau of Internal Revenue
Revenue Region No. ___
Please check
Original
Renewal
No. COOP-00001-10-RR-01-RDO-001
CERTIFICATE OF TAX EXEMPTION
(For Cooperatives registered under Republic Act No. 9520)
THIS IS TO CERTIFY THAT (ABC COOPERATIVE), a (TYPE OF COOPERATIVE,
EX. MULTI-PURPOSE Cooperative), with address at _________________ is a duly-registered
taxpayer of RDO No. ______ under Tax Identification No. ______________________ and is
registered with the Cooperative Development Authority under Registration Certificate No.
_______________ dated ___________.
As a cooperative transacting with members only, (ABC Cooperative) is entitled to the
following tax exemptions and incentives provided for under Article 60 of Republic Act No. 9520,
as implemented by Section 7 of the Joint Rules and Regulations Implementing Articles 60, 61
and 144 of RA No. 9520:
1. Exemption from Income tax on income from CDA-registered operations;
2. Exemption from Value-added tax on CDA-registered sales or transactions;

3. Exemption from other Percentage tax;
4. Exemption from Donors tax on donations to duly accredited charitable,
5.
6.
7.
8.
9.
research and educational institutions, and reinvestment to socio-economic

projects within the area of operation of the cooperative;
Exemption from Excise tax for which it is directly liable;
Exemption from Documentary stamp tax: Provided, however, that the other
party to the taxable document/transaction who is not exempt shall be the one
directly liable for the tax;
Exemption from payment of Annual Registration fee of Five hundred pesos
(P500.00);
Exemption from all taxes on transactions with insurance companies and banks,
including but not limited to 20% final tax on interest deposits and 7.5% final
income tax on interest income derived from a depositary bank under the
expanded foreign currency deposit system; and
[Note: Add only if taxpayer is an Electric cooperative duly registered with
the Authority]Exemption from VAT on revenues on systems loss and VAT
on revenues on distribution, supply, metering and lifeline subsidy of
electricity to their members.
This Certificate of Registration shall be valid for five (5) years or until ____________
unless sooner revoked by this Office for violation of any provisions of the Joint Revenue
Regulations, the terms and conditions on the reverse side hereof or upon withdrawal of the
Certificate of Registration by the CDA.
In Testimony Whereof, I have hereunto set my hand at Quezon City,
Philippines this ____________ day of ______________ 2014.
REGIONAL DIRECTOR
(Signature over Printed Name)
Office Code
TERMS AND CONDITIONS OF THIS CERTIFICATE OF TAX EXEMPTION
(1)
Any change or amendment in the charter or by-laws of the cooperative should be

communicated immediately to the Revenue District Office where the cooperative is
registered.
(2)
Any cooperative which violates any provision of the Joint Rules and Regulations
Implementing Articles 60, 61 and 144 of RA 9520 and Revenue Memorandum Order No.
___ may be disqualified either by suspension or cancellation of the right to avail of the
exemptions granted under Article 60 of RA 9520, in addition to any administrative or
criminal penalties provided for by laws or regulations.
(3)
Books of accounts and other accounting records of the cooperative and its actual
operations for any taxable year (fiscal or calendar) shall be subject to annual verification
by the Commissioner of Internal Revenue or his duly authorized representatives after
previous authorization by Cooperative Development Authority (CDA).
(4)
All cooperatives are required to yearly submit to the appropriate Revenue District Office
the following information or documents together with the filing of the cooperative's
Annual Information Return (BIR Form 1702) due on or before the 15th day of the fourth
month following the close of the calendar year:
1. Certified True Copy of the current and effective Certificate of Good

Standing from CDA;
2. Original Copy of certificate under oath by the Chairperson/General
Manager stating the following:
a. the type/category of cooperative and the principal
activities/business transactions it is engaged in;
b. that the cooperative is transacting business with members only
or both members and non-members, whichever is applicable;
c. the amount of the accumulated reserves as of the year end
concerned;
d. the amount of net surplus for the year; and
e. that at least 25% of the net surplus is returned to the members in
the form of interest on share capital and/or patronage refund;
3. Original Copy of yearly summary of records of transactions clearly

showing which transactions correspond to members or in case the
cooperative deals with members and non-members, yearly summary of
records of transactions clearly showing which transactions correspond to
members and non-members; and
4. Original Copy of Certification under oath by the Chairperson/General
Manager of the List of Members, their respective TINs, and the
Share Capital Contribution of each member as of the year end
concerned.
Failure of the cooperatives to comply with the above requirements shall be a ground for
cancellation/revocation of the Certificate of Tax Exemption.
(5)
The exemption of the cooperative shall not extend to its members subject to the exception
provided in Section 11 of the Joint Rules and Regulations implementing RA No. 9520.
(6)
Notwithtstanding the exemptions provided in this Certification, the cooperative shall be

subject to all other taxes for which it is directly liable and not otherwise exempted by any
law as stated pursuant to Sections 9 and 10 of the Joint Rules and Regulations
implementing RA No. 9520.
Appendix 6.5 Social Security System (SSS) Form
Appendix 6.7 Treasurers Affidavit
Ibliography
Bibliography
Bangko Sentral ng Pilipinas. (2014). Retrieved August 20, 2014, from Bangko Sentral ng
Pilipinas: http://www.bsp.gov.ph/downloads/Publications/FAQs/targeting.pdf
Batt, P. J. (2007). The Vegetable Industry in the Philippines. Curtin University of Technology.
Bureau of Agricultural Statistics. (2014). Country Stat Philippines. Retrieved August 12, 2014,
from Bureau of Agricultural Statistics: www.bas.gov.ph
Dalisay, D. R. (2014, August 9). Organic Farming Expert.
Department of Agriculture - Agribusiness and Marketing Assistance Service and Japan
International Cooperation Agency. (2012). Philippine Agribusiness Investment
Opportunities.
Department of Agriculture-Agribusiness and Marketing Assistance Service, and Japan
International Cooperation Agency. (2012). Philippine Agribusiness Investment
Opportunities.
Eden Strategy Institute. (n.d.). Potential of the EMC Customer. Retrieved August 20, 2014, from
http://www.emergingmiddleclass.com/
How rich is rich in the Philippines? (n.d.). Retrieved August 20, 2014, from Pinoy Money Talk:
http://www.pinoymoneytalk.com/socioeconomic-class-philippines-rich/
Ledesma, I. A., & Roque, J. E. (2013). Barangay Buda Community Profile. Ateneo de Davao
University, Social Work.
Nutrition Data. (2014, January 2). Nutrition Facts and Analysis. Retrieved September 8, 2014,
from Nutrition Data: nutritiondata.self.com
Sugdagroserv Consulting. (2012). Potential of Organic Products Produced in Tajikistan. Central
Asia.
Tejada, S. Q., & Carating, R. B. (2010). State of Organic Agriculture in the Philippines: The
Philippine Country Report.
Tejada, S. Q., Abrina, Y., Fernando, M., & Carating, R. B. (2010). State of Organic Agriculture
in the Philippines.
United States Department of Agriculture Rural Business-Cooperative Service. (1998). Cost of
Capital for Agricultural Cooperatives.

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A Study on the Viability of an Organic Lettuce Farm

in Barangay Buda, Marilog District, Davao City

Ateneo de Davao University

Ateneo de Davao University

A Study on the Viability of an Organic Lettuce Farm

In partial fulfillment of the requirements in

Summary of the Project ......................................................................................................... 1

Name of the Project .......................................................................................................... 1

Descriptive Definition of the Project ................................................................................ 2

Projects Long Range Objectives ..................................................................................... 4

Feasibility Criteria ............................................................................................................ 4

Market Feasibility ........................................................................................................ 4

Technical Feasibility .................................................................................................... 5

Financial Feasibility ..................................................................................................... 5

Socio-economic Feasibility .......................................................................................... 5

Organization and Management Feasibility .................................................................. 5

Highlights of the Project ................................................................................................... 6

Nature of the Industry .................................................................................................. 6

Mode of Financing ..................................................................................................... 15

Major Assumptions and Summary of Findings and Conclusion .................................... 15

Market Feasibility ...................................................................................................... 15

Technical Feasibility .................................................................................................. 17

Financial Feasibility ................................................................................................... 18

Socio-economic Feasibility ........................................................................................ 19

Organization and Management Feasibility ................................................................ 19

II. Market Study ............................................................................................................................ 20

Product Description ........................................................................................................ 20

Market Description ......................................................................................................... 21

Demand-Supply Analysis ............................................................................................... 27

Price Study ...................................................................................................................... 28

Marketing Program ......................................................................................................... 33

Technical Feasibility ........................................................................................................... 38

The Products ................................................................................................................... 38

Farm Size and Production Schedule ............................................................................... 44

Machinery and Equipment .............................................................................................. 46

Farm Location ................................................................................................................. 52

Building and Facilities .................................................................................................... 54

Raw Materials and Supplies ........................................................................................... 55

Waste Disposal ............................................................................................................... 58

Financial Feasibility ............................................................................................................ 63

Major Assumptions ......................................................................................................... 63

Chart of Accounts ........................................................................................................... 65

Total Project Cost ........................................................................................................... 70

Initial Working Capital Requirements ............................................................................ 71

Inventory Management .............................................................................................. 71

Cash Management ...................................................................................................... 72

Alternative Sources of Financing ................................................................................... 73

Sources of Financing the Project .................................................................................... 74

Capital Structure Policy ............................................................................................. 75

Cost of Capital ........................................................................................................... 75

Pro-forma Financial Statements ..................................................................................... 77

Financial Analyses ........................................................................................................ 108

Horizontal Analyses ................................................................................................. 108

Vertical Analyses ..................................................................................................... 109

Financial Ratios........................................................................................................ 114

Capital Budgeting Analysis ..................................................................................... 118

Accounting and Control Plan........................................................................................ 125

Revenue Cycle ......................................................................................................... 125