I - Project Title: Productivity Enhancement for Vinegar Production
1. Product Line : Coconut Sap (tuba) Vinegar
2. Technology Source : Department of Science and Technology (DOST)
3. Project Site : Brgy. Salaysay Marilog Dist., Davao City
4. Project Capacity
Daily 2,066 bottles
Weekly 10,466 bottles
Monthly 49,866 bottles
Yearly 554,800 bottles
5. Form of Business : Corporation
6. Unit Cost of Production : 10.00 per bottle
7. Unit price : 15.00 per bottle (375 ml)
8. Total Project Cost : 5, 031, 00.00
9. Return of Investment
Year 1 Year 2
33% 38%
10. Payback Period : 2 years
II - Introduction
The production of vinegar has been found to be a viable project in Davao City
considering the large market demand and availability of resources and technology for
production.
Based on my research in internet, an interview conducted with a local manager
of one of the biggest processors in the country , the national market demand for vinegar
is estimated at ₱2 million sixty percent of this market is currently served commercially
which has been dominantly served (about 90%) by this processor.
Fortunately, DOST wast able to develop a new technology of producing tuba
vinegar that will not only speed up the process of production but will improve the quality
of the tube vinegar production in a more economical way. Our m,ain production project
is called tube vinegar. Acondiment with sweet and sour taste made of fresh coconut sap
fermented for month using the traditional way of production.
With the use of DOST's new technology called the submerged culture acetator method
the production of tuba vinegar is shortened from one month to two weeks for its initial
harvest. The finished product of tuba vinegar comes in bottles of 375ml.
We are 5 in the organization with both have a big plantation of coconut. The
plantation of this production is donated by DOST. We are investing our capital to
generate income and employment to the people. The landd comes from proponent and
also the raw materials needed.
III - Objectives
1. To set up plant that will serve Davao City and its neighboring province with
high quality tuba vinegar at a fast using the submerged culture acetator.
2. To generate income and employment.
3. To give satisfaction of the costumer to meet their needs and wants.
IV - Strategies
1. Locate the project to the area whre the land (about 9 hectares) owned by the
proponent is present and building, raw materials and manpower are available.
2. Secure funding assistance from DOTC for the acquisition of the submerged
culture acetator to be used in the production of tuba vinegar.
3. Maximize the production capacity of acetator, which is 400 liters daily.
4. Ensure a daily sale of the vinegar is equivalent to daily production level.
5. Come up with a good marketing plan for the disposal of the vinegar product
not only in Davao City but in its neighboring areas.
6. Monitor closely the program of implementation to ensure the product quality.
V – Types of Organization
Corporation
A. Organizational Design
Line and Staff Organization
Stockholders
Manager
Asst. Manager/ Bookkeeper/ Secretary Driver/ Sales Man
Purchaser
Workers Workers Workers Workers Workers
B. Capital- 5,031,000.00
C. C. Sources of Funds:
Stockholder’s Equity - 2,831,000.00
c/ o DOST - 2,200,000.00
Total Project Cost - 5,031,000.00
D. Sources of Raw Materials/ Tuba c/ o Proponent
1. Lawis Lizada Toril, Davao City
2. Suawan Marilog Dist. Davao City
3. Prk-19 Pamintuan St., Durian Vill., Calinan Davao City
VI- Work Schedule
A. Basic Assumptions:
1. Purchase price tof tuba is ₱30.00 per gallon. Number purchases made on
Saturdays and Sundays.
2. The first 13 days of operation shall be devoted to the purchases and
accumulation of tuba/Bahalina (in gallons) as follows:
(Good for 10 tanks)
1st day (Friday) 279
2nd day (Saturday) No purchase
3rd day (Sunday) No purchase
4th day (Monday) 126
5th day (Tuesday) 114
6th day (Wednesday) 140
7th day (Thursday) 153
8th day (Friday) 285
9th day (Saturday) No purchase
10th day (Sunday) No purchase
11th day (Monday) 206
12th day (Tuesday) 106
13th day (Wednesday) 206
Daily (except for Friday, Saturday and Sunday)
Fridays 316
3. Each tank contains 12.5 liters of mother liquor which is gradually mixed Bahalina
based on the schedule presented in item no. 2 until the total volume of Bahalina
reached 187.5 per tank of 1,875 for 10 tanks.
4. Demand for tuba/bahalina:
1st year 87,742 gallons
Daily 800 gallons
2nd year onwards 88,480 gallons
Daily 900 gallons
5. The proponent owns the source of raw materials and collects ₱2 per tree/day
from the tuba gatherers. Capacity of each coconut tree produce tuba is 1 gallon per day.
Therefore, the required total number of trees:
1st year 87,724 trees
2nd year 88,480 trees
Daily 845,848 trees
6. Initial harvest of 400 liters of vinegar is made on the 14th day of operation.
Afterwards the daily harvest of 400 liters is made.
7. Tuba vinegar is sold in bottles of 375ml at ₱5.50 per bottle.
Projected Net Income for the First Two (2) Years:
Year 1 Year 2
1,058,356 1,931,758
VII - Risk
A. Risk to be consider
1. There would be an unexpected damages on pasteurization and packaging
process.
2. There might be a false order of vinegar.
3. Bad debts.
B. Risk Control
1. There would be a proper control in the operation.
2. There would be a down payment for every order and paid all upon
delivery.
3. Allowance for bad debts is recommended.
JC FOREVER COMPANY
Vinegar Production
Balance Sheet
ASSET
Current Assets: 2005 2006 Difference
Cash 1,123,523.00 2,000,255.00 1,876,732.00
Accounts Receivable 700,623.00 1,342,250.00 641,627.00
Inventories 677,021.00 925,255.00 2,482,034.00
Total Current Assets 2,501,167.00 5,167,760.00
Fixed Assets:
Land 495,000.00 495,000.00
Building, Equipment and Vehicle 1,131,091.00 1,024,852.00 -106,239.00
Total Fixed Assets 1,626,091.00 6,687,612.00
Other Assets:
Bahalina and Liquor 682,147.00 200,925.00 -481,222.00
Total Assets 4,809,405.00 7,988,535.00
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities:
Acrued Expenses
Utilities 68,416.00 20,025.00 -48,391.00
Telephone 25,000.00 10,000.00 -15,000.00
Income Tax Payable 20,000.00 15,000.00 -5,000.00
Total Liabilities 113,416.00 145,025.00
Stockholder’s Equity:
Capital Stocks
Property andv Equipment
DOST’s Donation
Retained Earnings
Total Stockholder’s Equity
Total Liabilities and Stockholder’s
Equity
