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RICK SUNRICE

A Feasibility Study Presented to the Faculty of East Systems Colleges of Rizal Morong, Rizal

In Partial Fulfillment of the Requirements for the Degree Bachelor of Science in Business Administration

Mr. Jeric R. Alap March 2014

APPROVAL SHEET
This feasibility study entitled, RICK SUNRICE, prepared and submitted by Mr. JERIC R. ALAP in partial fulfillment of the requirements for the degree Bachelor of Science in Business Administration, has been examined for Oral Examination.

ELOISA S. SAN DIEGO, Ed.D Date Adviser

Approved in partial fulfillment of the requirements for the degree Bachelor of Science in Business Administration, by oral Examination Committee.

EMELINDA J. SAN ANTONIO, MBA Chairman

GARY KEN N. ROBLES, Ed.D Member

JOY SG. CRUZ, MSCS Member

Accepted in partial fulfillment of the requirements for the degree Bachelor of Science in Business Administration with an average of______.

Date

Dean

3 ACKNOWLEDGEMENT The proponent would like to gratefully acknowledge the assistance and cooperation of the following persons who have made this feasibility possible. First of all, GOD ALMIGHTY who has always been there no matter what, for all guidance, blessings and giving us strengths everyday; MRS. EMELINDA SAN ANTONIO, PRESIDENT, for the motivation and professional advice which contributed much to conduct the study. DR. ELOISA S. SAN DIEGO, ADVISER of 4th year BSBA, for extending support, guidance, and great concern to the researcher, and for giving her helpful comments and suggestions; Prof. GARY KEN N. ROBLES, Ed.D., and Prof. JOY SG. CRUZ, MSCS, panel members, whose constructive criticism, dynamic expertise and valuable suggestions contributed in a large measure for the improvement of the study. Mr. Juanito T. Alap & Mrs. Marieta R. Alap, his parents, who continuously support him in all aspects of life; Julie ann, Reynaldo, Rein Mathew , his family member who always there to support him; Marwin Maglonog, the researchers cousin, who provide him with his dell laptop that became very useful all throughout the study; Friends, and rest of the barkadas who unselfishly shares what they know, give untiring moral support and who always there in times the researchers needs help. Jeric R. Alap

DEDICATION

With much love and gratitude, this project is dedicated to the most important people in my life; my parents, sister, brother and law, nephew, cousins, friends, classmates, and the rest of the barkadas.

TABLE OF CONTENTS
TITLE PAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i APPROVAL SHEET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ii ACKNOWLEDGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii DEDICATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iv TABLE OF CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .v LIST OF TABLES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii LIST OF FIGURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Chapter I. EXECUTIVE SUMMARY Name of the applicant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Name of the enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Location. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Descriptive definition of the project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Project long range objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Feasibility criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Highlights of the project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Chapter II. MARKETING ASPECT Market description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Pricing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. 11 Promotion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Demand. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Supply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Competitive position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Marketing program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

6 Chapter III. TECHNICAL ASPECT Technical description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Tools for production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Plant location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Plant layout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Chapter IV. MANAGEMENT ASPECT Types of business organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Proponent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Organizational Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Personnel component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Salary and wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Project time table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Chapter V. FINANCIAL ASPECT Total project cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 40 Sources of financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Rate of return of investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Notes to financial statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44

CHAPTER VI. SOCIO - ECONOMIC ASPECT Impact in the environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Economic impact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..47 Employment consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..50

List of Tables

Tables Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14

Description Project Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Project Time Table . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Breakdown of Investment . . . . . . . . . . . . . . . . . . . . . 6 Financial plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Current status of product . . . .. . . . . . . . . . . . . . . . . 11 Demand analysis . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Supply analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Projected Service Incomes . . . . . . . . . . . . . . . . . . .15 Distribution of product . . . . . . . . . . . . . . . . . . . . . . .16 Package Distribution . . . . . . . . . . . . . . . . . . . . . . . . 18 Tools and Machines . . . . . . . . . . . . . . . . . . . . . . . . .25 Position, Responsibilities, No. of Workers . . . . . . . .34 Salary and wages . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Project time table . . . . . . . . . . . . . . . . . . . . . . . . . . .35

List of Figures

Figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9

Description SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Product to be out in the market . . . . . . . . . .. . . . . .17 Basic business process flows . . . . . . . . . . . . . . . . 19 Value Chain Analysis of RICK SUN RICE. . . . . . . . 21 Basic process flow of milling . . . . . . . . . . . . . . . . . . 23 Location Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Layouts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Partnership chart . . . . . . . . . . . . . . . . . . . . . . . . . . 33

CHAPTER 1 Executive Summary

Name of the Applicant The name of the applicant is Jeric Alap, a 4 th year Bachelor of Science in Business Administration student of East Systems Colleges of Rizal, presently residing at # 340 R. Mata St. San Guillermo Morong Rizal.

Name of the Enterprise RICK SUNRICE is a form of rice production business which offers excellent quality and taste of rice. The name of the business entity came from the lead partner (JERICK) and includes SUNRICE which is the idea and suggestions of the capitalist partner.

Location The proposed business will be located along highway of Princess Urduja Narra Palawan. The location was chosen by the proponent being visible to the customers. The location also accessible to the number of farmers and potential clients in the area. The proposed site also had a drying area of rice because of widely space provided

Descriptive definition of RICK SUNRICE This proposed project intends to run a rice industry in Narra Palawan district where by the main product offered is rice, which is produced in Narra area

10 district. Narra area is located in southern part of Palawan. The rice is flavoring and contains good taste. The farmers have been traditionally farming this type of rice with also known as panggas rice in the area. This variety of rice whose price is competitive into other varieties of rice because of its excellent quality and taste.

Project Long Range Objectives The broad objective of this study is to Table 1 Project Objectives Project objectives for the 1- 5 years of operation To earned profit. Understand the impact of such industry to the society and environment.

Project objectives for 6-10 years of operation

To improve the living standard of the community in the area. To become one of the best supplier of rice. To develop the business model for the industry.

Project objectives for 11-15 years of operation

Become a best leader in such industry Become a productive business in such consecutive years.

11 Feasibility Criteria The proposed industry will purchase all the raw materials (rice with husk) from the farmers in an agreed price and then will be processed in the establishment mill and packaged in attractive packs. Hence, producing the final product, Once the final product is produced the product will be then put in the storage (Narra). From there the product will be transported to the market of Brokes Point and surrounding area as well as to the market of Puerto Princessa city area as per market demand. Some of the criteria of the project are; Offering quality and excellent taste of rice in a competitive price. Demandable product

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MISSION and VISION OF RICK SUNRICE

RICK SUNRICE MISSION Never stop searching for the ways to better serve and satisfy our clients. At the same time, we aim to create a balanced work atmosphere above and beyond personal gain.

RICK SUNRICE VISION To make a positive impact in the community by building relationships with our customers, enhancing efficient and effective operations, and

continuously improving environmental footprint while delivering on consumer demand for great tasting RICK SUNRICE products.

13 HIGHLIGHTS OF THE PROJECT Project time tables Table 2 Time in month

Activities

Beg.

End

Date

Date

Feasibility Study

01-05

01-31

Capital contributions

01-20

02-28

Registrations and licenses

03-01

03-20

Building construction

02-25

04-25

Acquisition of machineries

03-15

04-26

and equipment

Hiring of workers

05-2

05-20

Start of business

06-1

onwards

operation

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CAPITAL STRUCTURE ASSUMPTIONS The project is based on private partnership model, where certain portion will be invested by the lead partner (Jerick) and certain portion will be invested by private investors. It is assumed that no debt will be used for the project. The following capital structure has been assumed for the business: Capital structure; Active Partner Capitalist Partner INVESTMENT ASSUMPTIONS The project would require investments in different machineries as well as office equipments. The breakdown of investment is presented below: 50% 50% P650, 000.00 P650, 000.00

Table 3 Investment distribution

Particulars Cono Rice Mill (Single Pass) Rice Dryer Diesel Engine (4dr5) Installation Cost Building/Shed House Weighing Scale Service Vehicle (Suzuki Pick-Up) Computer Furnitures and Fixtures Permit & Licenses Total Fixed Investment

Amount 50,000 400,000 45,000 15,000 200,000 5,000 100,000 15,000 10,000 4,500 844,500

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MARKET FEASIBILITY The main product offered by this project is the rice. This special variety of rice specially produced in Narra Palawan. Narra Palawan is an area located at the southern part of Palawan, and known for production of panggas rice. The rice is flavoring and containing good taste. The farmers have been traditionally farming this rice in the area. The rice is a special variety whose price is competitive than other expensive varieties of rice that contains excellent quality and taste. Rick sun rice production will be determined in the district for Puerto Princessa and Brookes Point district. The overall objective of the program is to identify and focus on utilizing local skills, available raw material to create enterprise and employment opportunities for the balanced of the economic growth as well as profitability. To cater the objectives, RICK SUN RICE will be identified as the best product for Narra, Puerto Princessa and Brookes Point district whose demand has been increasingly recently. RICK SUNRICE aiming to expand the target potential buyers and customers to NCR.

TECHNICAL FEASIBILITY Since rice is the staple food in the country and nearby countries, RICK SUNRICE had already buyers and consumers. RICK SUNRICE will produce special variety of rice which has excellent & quality taste of rice that customers will surely satisfy. The proposed business is equipped by advanced features of machines, computers, and other equipment that would provide quick production, high quality product, effective and efficient services without noticeable time delay.

16 The business will be located along highway of Princess Urduja Narra Palawan in a 20x40 sq. m. building and a widely space drying area at the same time a waiting area to avoid any accident along the road. Tools and equipment that will be used under the formal operation of the business will be state of the art quality and will be handled by competent and trained personnel. Based on above facts SWOT analysis for the project is: Figure 1: SWOT Analysis

STRENGTH Climatic conditions Rainfall Skilled farmers Less competition SWOT OPPORTUNITIES Market price Growing demand

WEAKNESS Price Sensitive Weak marketing channel Weak infrastructures No trademark Poor management

THREATS Lack of labor forces Storage and distribution

Strength and Opportunities can easily overcome the Threats and Weaknesses of the business.

MANAGEMENT FEASIBILITY RICK SUNRICE is a private partnership model that contributing equal money and property. Both of them have equal profit and loss sharing ratio. One of the partners will serve as an active partner of the project and the one is capitalist partner. The active partner will receive salary and share in profit or loss and the capitalist partner will only receive his equal share in profit or loss. The employee

17 or the labor force will receive their salary according to position and responsibilities of it.

FINANCIAL FEASIBILITY The investment of RICK SUNRICE will cost P1, 300,000.00out of which will come from the equal contribution of two (2) partners. The contribution will be on the form of money. The business results of operation, results of performance are projected for the next 5 consecutive years. Table 4 Financial Plan Description Partner 1 Partner 2 Total Amount P650,000 P650,000 P1,300,000

SOCIO-ECONOMIC IMPACT RICK SUNRICE is a business entity that provides quality and excellent taste of rice. Profitability is the major priority of the business that would be gained if better or even best quality products may satisfy the buyers or clients. With growth in economic welfare, employment and education, the overall standard of living for the area would increase. The project also helps the community of Palawan through taxes, permits and other regulatory fees. This will promote government to install more institutions in the area such as cooperatives, health check up centers, farmer education centers, schools and others. The creation of wealth in rice production in the area had a positive effect for the improvement of the area as well as to the whole economy.

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Chapter 2
Marketing Aspect
These chapters presents analysis of demand and supply, description of the market and the service can be deliver to its customers. The study aims to determine the feasibility and viability of putting up a rice business, in that sense that it will be deliver quality product and service in a reasonable price.

MARKET DESCRIPTION The main product offered by this project is rice. It is a variety of rice specially produced in Narra Palawan. Narra Palawan is an area located at the southern part of Palawan, and known for production of rice. Rice that is flavoring and contain good taste. The farmers have been traditionally farming the variety rice in this area. RICK SUN RICE will be determined in the district for Narra, Puerto Princessa and Brookes Point district. Aside from a supplier of rice in the area RICK SUN RICE will give also services in milling rice. The overall objective of the program is to identify and focus on utilizing local skills, available raw material to create enterprise and employment opportunities for the balanced of the economic growth as well as profitablity. To cater the objectives, Rick sun rice will be identified as the best product for Narra, Puerto Princessa and Brookes Point district whose demand has been increasingly recently.

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PRICING Aside from the quality of product or services offered, price is the second factor that can customers look into. It shows the information on current status in terms of product status, service price status, and demographic information. Table 5 Current status of product and services Princess Urduja Current product status of rice in the area Total production Production per square feet Current price per kg Conversion rate from 100 kg of rice with husk to milled rice 20 metric ton 120 kg P 45/kg 65 kg - 73 kg 25 metric ton 160 kg P 45/kg 68kg - 72 kg 45 metric ton 140 kg P 45/kg 65 kg - 75kg Narra Total

Current services status in milling rice Current price per kg of rice Service Price for milling / kg P 45/kg P2 P 45/kg P2 P 45/kg

Demographic Information Number of houses Number of families Total population Male Female Distribution Information Current market place Vehicles use for distribution Distance to pitched road Narra, Brookes Point, Puerto Princessa Trucks, porters. 10-15 kms. 602 582 3229 1549 1680 Not available 911 4846 2358 2488 Not available 1493 8075 3907 4168

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Challenges in the marketing process The rice does not have trademark or brand recognition, hence, it is difficult to sell the rice in different locations. The distribution channel for the rice is very weak, as farmers are not in contact with the retailers. Transportation of rice is difficult as well as costly which is difficult for farmers to bear. The price of the rice is not scientifically determined.

PROMOTION The product will be promoted as a unique and genuine brand of RICK SUN RICE. The brand name selected (RICK SUNRICE) will/should represent the Narra community and the product will be promoted as the genuine product of Narra area.

DEMAND ANALYSIS Like other nationality, Filipinos love to eat rice which is being served almost three times a day in our tables. People in Luzon, some part of Visayas, Mindanao and nearby countries usually consumed 300 million metric tons of rice per year, which result for increasing shortage of rice. This indicates that there is high demand for this commodity. Rice is the basically needs of people and truly a

21 source of energy of any living person, thats why putting a rice business is definitely a wise decision because the customers are always there. Small and big businesses domestic and foreign may become a potential client of the business. Table 6 Demand Analysis PROJECTED DEMAND FOR RICK SUNRICE AS OF YEAR 2016 Brookes Point 61,201 100% 61,201 30% 18,360.30 Puerto Princessa 223,543 100% 223,543 25% 55,885.75

Target Market Population % Of People Who Needs Rice Consumption % of Target Demand Projected Number of Client
Source: National Statistics Office

Narra 65,264 100% 65,264 30% 19,579.2

Total 350,008

350,008 26.8066% 93,825.25

Percentage of consumption per district is based on the size and population of the possible customers which avail the product.

Supply Analysis RICK SUNRICE is a rice business caters to the need of the increasing population of the country. Rice business in the market has a lot of competition, almost all was offering different variety of rice. Almost of their products come from very few supplier in the place. However, quick availability of the product and services at lower prices supports the customers demand by allowing them to turnaround in a faster rate than the competition. The proponent believes that it is an advantage of a business when it is registered business compared to other competitors. In that sense, the customers will protect

22 and they can assure that they protected under the consumer act. Since the Philippines is ranked as a twelve (12) populated country in 2011 with a population of 102 millions, prove that there is already a demand for the rice which is the basically needs of any living person. The establishment of rice production in Narra can minimize cost of labor because of the minimum rate of labor. Although competitors arises every year, but as a staple food in the country the market status had increases annually. The table below shows the supply analysis of the project.

Table 7 Supply Analysis Cultivable Land % Target area Projected Size Of The Production Production per hectare 1 metric ton Total collection of rice with husk Total collection of rice every season Conversion rate Total rice without husk available for sale Available quantity of rice for sale/year Available quantity of rice for sale/season 1325 11.32% 100 2.5 1000 250,000 83,333 70% 175,000 58,333 2,333 Kg 25 kg Sack 25 kg Sack Hectare Metric ton Kg Kg Kg Hectare

23 Table 8 Projected Service Income

Projected Service Income For RICK SUNRICE as of year 2016 Year Consumption Only in The Narra Area % Of Target Demand Total Target Demand Projected Demand Milling (30%) total target Milling (6 x Year) Milling Price / Kg Total 2016 65,264 20% 13,053 2017 68,527 23% 15,761 2018 71,953 26% 18,708 2019 75,550 29% 21,909 2020 79,328 42% 33,318

3,916 23,496 2 46,992

4,728 28,368 2 56,736

5,612 33,672 2 67,344

6,573 39,438 2 78,876

9,995 59,970 2 119,940

Notes and assumptions: 1. Target demand assumes to increase 5% year. 2. The basis of the target demand which is the number of people that will avail the milling service a year and assumed to increase in 3% per annum. 3. The projected sales are from the average of services in rice milling.

COMPETITIVE POSITION RICK SUN RICE will be based on market segmentation, on going price of the product in Narra, Brokes Point and surrounding area is P40 per Kg hence the Price for Brokes Point and surrounding market will be P 40 per Kg Where as price for the market of Puerto Princessa will be the same as P40 per Kg for 25 Kg pack. Price of the product for international market will be decided depending on the demand for the product in international market. For the time being, the price for domestic market is expected to increase at the rate of 5% per annum. The following table shows the yearly price distribution in the respective market:

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Table 9 Positioning of Products Market segments Selling Price (Narra) 25 kg Packs/kg price 2016 40 2017 42 42 2018 44 44 2019 47 47 2020 49 49

Selling Price (Brokes Point) Packs/kg 40 price selling Price (Puerto Princessa) 25 kg 40 packs/kg price

42

44

47

49

MARKETING PROGRAM Target Market The immediate market identified for RICK SUN RICE are Brokes Point and surrounding areas, and Narra. However, the chunk of production will be transported to Puerto Princessa. Since, the market of Brokes Point and surrounding areas are small only 20% of the total production will be sold in Narra and surrounding area and the rest 80% will be transported to Puerto Princessa. The percentage of production transported to Puerto Princessa will gradually increase from second year as the production increases. The following table shows the distribution of product in the above three mentioned market:

25 Table 10 Distribution of product Market Assumption Narra Brokes Point (and surrounding area) Puerto Princessa Total supply to Narra (in quantity kg) Total supply to Brokes Point (in quantity kg) Total supply to Puerto Princessa (in quantity kg) 2016 20% 15% 65% 40,500 32,300 89,700 2017 20% 15% 65% 43,700 35,500 91,425 2018 20% 14% 66% 45,100 38,700 95,357 2019 20% 13% 67% 50,300 40,352 97,462 2020 21% 13% 66% 52,430 42,600 102,489

RICK SUN RICE also has a large demand in international market, if the production of RICK SUN RICE increases enough to meet the demand of international market then the product will also be exported.

PRODUCT DESCRIPTION The main product offering of the project is a special variety of rice that specially produced in Narra area, which is flavoring and containing good taste. The RICK SUNRICE is a special variety that the price is typically higher than other variety of rice because it has an excellent quality and taste. Figure 2: Picture of rice to be out in the market

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PACKAGING The product will be made available in attractive packets (25 Kg Sacks). 25 kg sacks will be made available in both Brokes Point and Puerto Princessa market. All the information related to nutrition as well as batch number and code will be printed in each and every pack. Packaging of product in two different categories is shown in the table below: Table 11 Packaging Distribution Particulars 2016 2017 2018 2019 2020

Packaging distribution 25 kg packs(in 100% percentage) 25 kg packs (in number of 7,000 sacks)

100% 7,350

100% 7,718

100% 8,103

100% 8,509

CHANNEL OF DISTRIBUTION Implementation Plan The proposed industry (business) will purchase all the raw material (rice with husk) with the framers in an agreed price (which we have recommended to be P18/ kg) which is higher than the ongoing market rate. The price will increase by 5% per annum. The rice with husk will then be processed in the established mill and packaged in attractive packs hence producing the final product. Once the final product is produced the product will be then be put to the storage in Narra. From there the product will be transported to the market of Puerto Pricessa and surrounding area as well as to the market of Brokes Point as per the market

27 demand. The price that will be charged for different market segment is mentioned in the marketing plan below:

Figure 3: Basic business process flow Farmer

Rick Sun Rice Milled rice Farmer Puerto Princessa

Milled rice

Farmer

Storage

Brokes Point

Farm ers

Collecti on of Rick

Processing of rice

Packaging of rice

Storage

Distribution

Consump tion

sun rice

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Chapter 3 Technical Aspect

Technical Description Rice production is important to the food supply in the country and economy. The Philippines is the 8th largest rice producer in the world, accounting for 2.8% of global rice production. The Philippines was also the world's largest rice importer in 2010. A full range of activities which are required to bring a product or service from conception, through the different phases of production, delivery to final consumers and disposal after use. Thus, the essence of value chain is to improve learning in enterprise development. Specifically, it treats industry not as a singular entity, but as a part of integrated chain of economic functions and linkages across geographic boundaries. The value chain of RICK SUN RICE integrates analysis of production process, distribution and that of associated enabling environment. The value chain consists of two basic points: (1) Primary Activities and (2) Support Activities. Primary Activities: Primary activities are those functions which are directly involved in production, procession and distribution of rice. These activities can be grouped into inbound logistics, production and processing, outbound logistics, and marketing and sales.

29 Support Activities: While support activities are not directly involved in the manufacture and movement of the product, these activities have critical impact on the efficiency of production and distribution. Support activities serve as the value chains enabling environment. These support activities include: (a) Firm Infrastructure, (b) Human Resource, (c) physical infrastructure.

The value chain for RICK SUN RICE can be explained from the following diagram.

Firm Infrastructure Human Resources Physical infrastructure

I N B O U N D L O G I S T I C
P A P R N R O D O D C U E C S T S I I O N N G O U T B O U N D L O G I S T I C S M A A N R D K E S T A I L N E G S

R E V E N U E A N D P R O F I T

Figure 4: Value Chain Analysis of RICK SUN RICE

30 Inbound Logistics The inbound logistics of RICK SUN RICE production includes following activities:

a) Seeds: Seeds for RICK SUN RICE are stored from previous harvesting seasons. RICK SUN RICE seeds are not available in market for purchase; hence, farmers save seeds from their previous harvest, which are sowed and planted.

b) Fertilizers: The fertilizers are required for the efficiency in rice-growing and also for the protection against weeds, insecticides and other harmful living and non-living organisms. However, excess use of fertilizers may have negative effect on production. Hence, proper training and agro-education for farmers is needed.

31 PRODUCTION AND PROCESSING Production Process Figure 5 :Basic process flow of milling

32 Outbound Logistics a) Packaging: Proper distribution of rice requires having rice packaged in various sizes. For common rice, following type of sizes are available in market: 5-10 Kg packet 20-25 kg packet 45-50 kg packet

For smaller packets from 1kg to 10 kg plastic bags are used, where as for medium packets 20-25 kg packet plastic sacks are used. For large packets, 4560 kg, plastic or jute sacks are used. For RICK SUN RICE, two different packet sizes with different bags can be used, such as: 5 kg packet (plastic bag) 25 kg packet (plastic sack) b) Distribution: All the proposed industry (rice processing and packaging) will be within San Isidro and Prices Urduja, hence the final packed product will be transported to Narra (25 Km away from the site as well as it is access point ) via a tractor of processing industry itself. Once the product reaches Narra and stored, it will then be transported to the market of Puerto Princessa and surrounding areas as well as to Brokes Point using rented trucks. The wholesaler from Brokes Point and Puerto Princessa will be responsible for the distribution and transportation once the product reaches their respective storage area.

33 Marketing and Sales These activities include the advertising, channel selection, product promotion, selling, product pricing, retail management, etc. The activities are performed to make sure that the products are transferred to the targeted customer groups. Marketing mix can be an instrument to take the competitive advantage to the target customers.

TOOLS AND MACHINERIES USE FOR PRODUCTION OF RICE Table 12 Tools and Machineries Particulars Cono rice mill (single pass) Cost P30,000 Uses Cono

rice

mill

is

an

agricultural machine used to automate the process of removing the chaff (the outer husk) of grains of rice.

P45,000 Diesel Engine (4dr5)

A diesel motor is a machine that provides mechanical energy converts rice

polisher to separate grains of rice.

34 Rice dryer P 400,000 A dryer is equipment

specially made for drying wet grain of rice in rainy seasons.

From: Zhengzhou Hengjia Machinery Manufacturing Co., Ltd Furniture and fixtures P10,000 Specifically use in the

business to provide best service and products.

Computer and other equipments

P15,000

Important

equipments

of

the business to record data as well as to make easy the different task. Service Vehicle (Suzuki pick-up) P100,000 It is used as a service of the business. It is also used for delivering products

nearby the area.

Weighing Scale

P5,000

It is one of the important equipment in this business, to give a fair and right services to customers.

35 The Situation Analysis and SWOT (strength, weakness, opportunities, and threats) analysis Product : RICK SUNRICE Technology and processing facility Quality Price Promotion and advertising Credit facility Distribution Image Service Market or buyers Project Technology and machinery available for the Processing Offers quality products, because of organized trading. Competitive and moderate price. Tarpaulins. No. The rice distributed to Narra area as well as Puerto Pricessa and brookes point. Yet to be established Competent, reliable and timely. Market in Narra area Brookes point and Puerto Pricessa plan to expand in national market such as manila and other places.

Based on above facts SWOT analysis for the project is: STRENGTH Climatic conditions Rainfall Skilled farmers Less competition SWOT OPPORTUNITIES Market price Growing demand THREATS Lack of labor forces Storage and distribution WEAKNESS Price Sensitive Weak marketing channel Weak infrastructures No trademark Poor management

Strength and Opportunities can easily overcome the Threats and Weaknesses of the business. Hence, this new business can be recommended for the operation. Strengths Soil and agro climatic situation is suitable for the production of RICK SUN RICE.

36

Rainfall in the region is well distributed. Availability of skilled workers with knowledge of RICK SUN RICE farming. There are very few other rice products that has quality of RICK SUN RICE. Hence, the product does not have great competition in its product categories. Weakness The product has a small niche market because of its high cost and quality. Hence, the demand could be very sensitive to factors such as quality, availability of similar products in low price and others. The price of RICK SUN RICE is high in market than other normal rice that makes RICK SUN RICE a sensitive to price changes. The existing market chain for RICK SUN RICE is very ineffective because of which proper marketing and distribution of RICK SUN RICE has been problematic. There are weak infrastructures such as no irrigation facilities, soil testing units, seed treatment RICK SUN RICE does not have any trademark which makes difficult for the identification as well as marketing of the product. Like any other seasonal crops, this is also seasonal. The farmers generally do less work during off season because of which migration for work has also increased. Poor management practices for agricultural crops.

Opportunities High market price could encourage farmers to produce more. Demand for RICK SUN RICE is increasing in both local and international markets.

37 Threats Un-availability of labor force during crucial periods due to migration to inside & outside the state. Storage and distribution of rice would be difficult because of the geographical location of the production site.

PLANT LOCATION The study of RICK SUNRICE was carried out in Palawan. To be specific, the study was concentrated in Narra area.

Figure 6: location map

38

LAYOUT

Figure 7: Layout

39

STRUCTURE

Figure 8: Structure

40

Chapter 4 Management Aspect

Management allows people together to accomplished objectives by using the available resources effectively and efficiently. It is often included as a factor of production along with machines, materials and money. According to the management guru Peter Drucker (1909-2005), the basic task of management includes both marketing and innovation. Practice of modern management originates from the 16th century study of low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas More (1478-1535). Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing an organization's resources in order to achieve the objectives of that policy.

FORM OF BUSINESS OWNERSHIP RICK SUNRICE This proposed business is based on private partnership model, where certain portion will invest by managing partner (Jerick) and certain portion will be invested by the capitalist partner with a total of P 844,500.00

41 Table PARTNERSHIP TYPE AND PROFIT AND LOSS SHARING RATIO PARTNER TYPE OF PARTNERS PROFIT AND LOSS RATIO JERIC ALAP Active Partner (Manager) 50%

PRIVATE PARTNER

Capitalist Partner

50%

The business will be registered in the municipality of Narra Palawan securing for the business permit and will operate in compliance with all the legal requirements of the law and related business offices.

Advantages of partnership 1. Two heads are better than one. 2. Your business is easy to establish and start-up costs are low. 3. More capital is available for the business. 4. Youll have greater borrowing capacity. 5. There is opportunity for income splitting, an advantage of particular importance due to resultant tax savings. 6. Partners business affairs are private. 7. There is limited external regulation. 8. its easy to change your legal structure later if circumstances change.

42

Figure 9: Partnership Chart PARTNERSHIP CHART

RICK SUNRICE

MANAGING PARTNER (JERICK)

CAPITALIST PARTNER (INVESTOR) MANAGEMENT

PERSONNEL COMPONENT Human Resource The human resource required for this business would basically comprise of labors, farmers, store keepers, and management members. Managing human resources could be the key on the wake of growing trend from national to foreign employment.

43

Table 13 Position, Responsibilities, No. of Workers. Position Manager No. of worker 25-30 years old with Supervision of all the 1 experienced in activities of the project. managing people and have knowledge to rice business. 25- 40 years old and It is Responsible for 1 have the knowledge in the operation of operating machineries machines for as well as other production. equipment. 25-40 years old must These are laborers 2 be physically and who obliged to do mentally fit to do physical works of physical works. project business. Qualifications Responsibilities

Mill operator

Worker/ loader

Table 14 Schedules of Compensation

Position No. of employee 1 1 1 1 4 Working days 5 5 5 5 5 Rate/day Weekly Monthly Gross Compensation

Manager Mill Operator Worker Loader Total

300 250 200 200 950

1,500 1,250 1,000 1,000 4,750

6,000 5,000 4,000 4,000 19,000

72,000 60,000 48,000 48,000 228,000

44

PROJECT TIME TABLES Table 15 Time in month

Activities

Beg. Date

End Date

Feasibility Study

01-05

01-31

Capital Contributions

01-20

02-28

Registrations and

03-01

03-20

Licenses

Building Construction

02-25

04-25

Acquisition of Machineries

03-15

04-26

and Equipment

Hiring of Workers

05-2

05-20

Start of Business

06-1

Onwards

Operation

45

Chapter 5 Financial Aspect

This chapter presents total project costs, initial investment, and financial statements; income statements, cash flow, balance sheet, schedule of partners equity, notes to financial statements, schedule of depreciation, schedule of salaries and wages, schedule of operating expense, financial analysis and payback period.

RICK SUNRICE as a proposed service business aims to project income, assets and cash flow for the years 2016-2020. The proper computation and analysis of the financial aspect is considered as an important factor in establishing a successful business.

46

Total Project Cost The investment in the project would require investments in different machineries as well as office equipments. The breakdown of investment is presented below: Table 18 Investment distribution Particulars Cono Rice Mill (Single Pass) Rice Dryer Diesel Engine (4dr5) Installation Cost Building/Shed House Weighing Scale Service Vehicle (Suzuki Pick-Up) Computer Furnitures and Fixtures Permit & Licenses Total Project Cost Amount 50,000 400,000 45,000 15,000 200,000 5,000 100,000 15,000 10,000 4,500 844,500

Capital Structure Assumptions The project is based on private partnership model, where certain portion will be invested by the lead partner (Jerick) and certain portion will be invested by private investors. It is assumed that no debt will be used for the project. The following capital structure has been assumed for the business: Table 19 Capital distribution Lead partner Investment Private partner investment Total 50% 50% 100% P422,250 P422,250 P844,500

47

FINANCIAL STATEMENTS INCOME STATEMENT

RICK SUNRICE PROJECTED INCOMESTATEMENT FOR THE YEARS ENDED 2016-2020 YEARS AND AMOUNT IN PESO PARTICULARS Sales Add: Service Income Less: Cost of goods sold Gross profit Less: selling and distribution Expenses Carriage outwards(transportation) Packaging Expenses Fuel Expenses Research of the project Less: Administrative Expenses Salary Utilities Repair and maintenance Depreciation Amortization of pre-operating expenses SSS PHILHealth Pag-Ibig Earnings before tax Tax Net Profit

2016
6,500,000 46,992 4,275,000 2,271,992 645,000 345,000 35,000 240,000 25,000 665,292 228,000 300,000 30,000 81,500 900 16,972 5,040 2,880 961,700 288,510 673,190

2017
7,166,250 56,736 4,963,125 2,259,861 640,750 362,250 38,500 240,000 704,792 250,800 330,000 33,000 65,200 900 16,972 5,040 2,880 914,319 274,296 640,023

2018
7,882,897 67,344 5,486,250 2,463,991 662,713 380,363 42,350 240,000 749,872 275,880 363,000 36,300 48,900 900 16,972 5,040 2,880 1,051,406 315,422 735,984

2019
8,841,343 78,876 6,049,275 2,870,944 685,966 399,381 46,585 240,000 801,090 303,468 399,300 39,930 32,600 900 16,972 5,040 2,880 1,383,888 415,166 968,722

2020
9,705,440 119,940 6,654,884 3,170,497 710,594 419,350 51,244 240,000 859,060 333,815 439,230 43,923 16,300 900 16,972 5,040 2,880 1,600,843 480,253 1,120,590

48

FINANCIAL STATEMENTS CASH FLOW

RICK SUNRICE PRODUCTION PROJECTED CASH FLOW 2016-2020 YEARS / AMOUNT IN PESO PARTICULARS Cash Flow from Operating Activities: Net Profit Add: Non- cash Expenses Depreciation Amortization of Pre operating Expenses Working Capital Adjustments (increase)/decrease of current assets (decrease)/increase of current liabilities Net Cash flow from Operating Activities Cash flow From Investing Activities (Purchase)/Sale of Fixed Assets Net Cash Flow from Investing Activities Cash Flow From Financing Activities Equity Raised Net Cash Flow from Financing Activities Net Cash flow Opening Cash Balance Closing Cash Balance

2016
673,190 82,400 81,500 900

2017
640,023 66,100 65,200 900

2018
735,984 49,800 48,900 900

2019
968,722 33,500 32,600 900

2020
1,120,590 17,200 16,300 900

-662,500

-67,250

-72,321

-96,533

-87,139

93,090

638,873

713,463

905,689

1,050,651

844,500 844,500

844,500 844,500

93,090 93,090

638,873 93,090 731,963

713,463 731,963 1,445,426

905,689 1,445,426 2,351,115

1,050,651 2,351,115 3,401,766

49

FINANCIAL STATEMENTS BALANCE SHEET

RICK SUNRICE PRODUCTION PROJECTED BALANCE SHEET AS OF DECEMBER, 2016- 2020 YEARS AND AMOUNT IN PESO PARTICULARS Capital and liabilities Equity Lead partner portion Private partner portion Add: Reserve and Surplus Net capital and liabilities Assets Fixed Assets Less: Accumulated Depreciation Net fixed assets Pre Operating Expenses Accumulated Amortization Net Pre Operating expenses Current assets Cash and Bank balance Sundry Receivables Inventories Net current assets Net Assets

2016
844,500 422,250 422,250 673,190 1,517,690

2017
844,500 422,250 422,250 1,313,213 2,157,713

2018
844,500 422,250 422,250 2,049,197 2,893,697

2019
844,500 422,250 422,250 3,017,919 3,862,419

2020
844,500 422,250 422,250 4,138,509 4,983,009

840,000 81,500 758,500 4,500 900 3,600

840,000 146,700 693,300 4,500 1,800 2,700

840,000 195,600 644,400 4,500 2,700 1,800

840,000 228,200 611,800 4,500 3,600 900

840,000 244,500 595,500 4,500 4,500 -

93,090 650,000 12,500 755,590 1,517,690

731,963 716,625 13,125 1,461,713 2,157,713

1,445,426 788,289 13,781 2,247,497 2,893,697

2,351,115 884,134 14,470 3,249,719 3,862,419

3,401,766 970,544 15,199 4,387,509 4,983,009

50

RICK SUNRICE PROJECTED PARTNER'S EQUITY as of 2016-2020 (amount in peso)

YEAR 2016 2017 2018 2019 2020

JERIC ALAP Investment Add: Share in Net Income (loss) Balance

PRIVATE PARTNER

422,250 336,595 758,845

758,845 320,001.50 1,078,856.50

1,078,856.50 1,446,848.50 367,992 484,361

1,931,209.50 560,295

1,446,848.50 1,931,209.50 2,491,504.50

Investment Add: Share in Net Income (loss) Balance

422,250 336,595 758,845

758,845 320,001.50 1,078,856.50

1,078,856.50 1,446,848.50 367,992 484,361

1,931,209.50 560,295

1,446,848.50 1,931,209.50 2,491,504.50

51 Notes to Financial Statement

Depreciation Particulars Cono Rice Mill (Single Pass) Rice Dryer Diesel Engine (4dr5) Installation Cost Building/Shed House Weighing Scale Service Vehicle (Suzuki Pick-Up) Total Depreciation Every Year Cost 50,000 400,000 45,000 15,000 200,000 5,000 100,000 815,000 Useful life 10 10 10 10 10 10 10 Depreciation 5,000 40,000 4,500 1,500 20,000 500 10,000 81,500

Salary and wages Position Manager Mill Operator Worker Loader Total Weekly 1,500 1,250 1,000 1,000 4,750 2016 72,000 60,000 48,000 48,000 228,000 2017 75,600 63,000 50,400 50,400 239,400 2018 79,380 66,150 52,920 52,920 251,370 2019 83,349 69,458 55,566 55,566 263,938 2020 87,516 72,931 58,344 58,344 277,134

52 Schedules of Benefit Contribution

2016 SSS Employer Contribution No. of Employees Contribution/ Month No. of Month Total Contribution PHILHEALTH Employer Contribution No. of Employees Contribution/ Month No. of Month Total Contribution PAGIBIG Employer Contribution No. of Employees Contribution/ Month No. of Month Total Contribution 353.58 4 1,414.33 12 16,972

2017 353.58 4 1,414.33 12 16,972

2018 353.58 4 1,414.33 12 16,972

2019 353.58 4 1,414.33 12 16,972

2020 353.58 4 1,414.33 12 16,972

105 4 420 12 5,040

105 4 420 12 5,040

105 4 420 12 5,040

105 4 420 12 5,040

105 4 420 12 5,040

60 4 240 12 2880

60 4 240 12 2880

60 4 240 12 2880

60 4 240 12 2880

60 4 240 12 2880

53 Schedules of operating expenses 2016 4,500 345,000 35,000 240,000 228,000 300,000 30,000 81,500 16,972 5,040 2,880 25,000
1,313,892

2017

2018

2019

2020

Pre-Operating Expenses Carriage outwards (transportation) Packaging Expenses Fuel Expenses Salary Utilities Repair and maintenance Depreciation of Equipments SSS PHILHealth Pag-Ibig Research of the project Total

362,250 38,500 240,000 250,800 330,000 33,000 81,500 16,972 5,040 2,880

380,363 42,350 240,000 275,880 363,000 36,300 81,500 16,972 5,040 2,880

399,381 46,585 240,000 303,468 399,300 39,930 81,500 16,972 5,040 2,880

419,350 51,244 240,000 333,815 439,230 43,923 81,500 16,972 5,040 2,880

1,360,942

1,444,285

1,535,056

1,633,954

54

Projected Financial Analysis 2016 Profitability Ratio

Net Income After Tax Divided By: Total Sales Profitability margin on sales Return on Total Assets Net Income After Tax Divided By: Total Assets Return on Total Assets Return on Equity Net Income After Tax Divided By: Partners Equity Return on Equity 673,190 640,023 735,984 968,722 1,120,590 6,546,992 7,222,986 7,950,241 8,920,219 9,825,380 10.28% 8.86% 9.25% 10.85% 11.40%

2017

2018

2019

2020

673,190 640,023 735,984 968,722 1,120,590 755,590 1,461,713 2,247,497 3,249,719 4,387,509 89.09% 43.78% 32.74% 29.80% 25.54%

673,190 640,023 735,984 968,722 1,120,590 1,517,690 2,157,713 2,893,697 3,862,419 4,983,009 44.35% 29.66% 25.43% 25.08% 22.48%

55

Revenue Assumption 1. Production growth rate is 5 %. 2. Purchase /sales price growth rate is 5%.

Expenses Assumption 1. Salaries and wages will tend to increase at a rate of 10% per year. 2. Utility growth rate is 10%. 3. Carriage growth rate is 10%. 4. Raw material for packaging increase rate is 10%.

Other Assumption 1. The provision of income tax is 30% of income before tax as per BIR.

Growth Rate Production Salary

Per Annum 5% 5%

56 Utilities Purchase / sales price Raw material for packaging increase rate 10% 5% 10%

Purchase Purchase Rate Purchase price/ kg

2016 21

2017 22.05

2018 23.15

2019 24.30

2020 25.51

Selling price selling price / kg NARRA 25kg packs selling price / kg BROOKES POINT 25kg packs selling price / kg PUERTO PRINCESSA 25kg packs 40 40 40 42 42 42 44 44 44 47 47 47 49 49 49

Purchase Cultivable land Panggas cultivated rice at present Production per hectare 1 metric ton Total production Conversion rate Total rice available for sale

1325 100 2.5 1000 250,000 70% 175,000

Hectare Hectare Metric ton Kg Kg Kg

Purchase Purchase price Production Conversion Available rice

Purchase kg/season

2016 21

2017 22.05

2018 23.15

2019 24.30

2020 25.51 303,876 70% 212,713

83,333.333 250,000 262,500 275,625 289,406 70% 70% 70% 70% 70% 58,333.333 175,000 183,750 192,938 202,584

57

Sales Production Less: closing stock Sales in Narra Sales in Brookes Point Sales in Puerto Princessa Opening stock Total sales 2016 175,000 12,500 40,500 32,300 89,700 2017 183,750 13,125 43,700 35,500 91,425 12,500 2018 192,938 13,781.25 45,100 38,700 2019 202,584 14,470.313 50,300 40,352 2020 212,713 15,193.8 52,430 42,600 102,489.2 14,470.313

95,356.75 97,461.69 13,125 13,781.25

Chapter 6 Socio-Economic Aspect

ENVIRONMENTAL IMPACT

Biodiversity: Biodiversity is likely the most important rice-associated ecosystem service and the one at highest risk due to these intensification practices. Traditional rice systems have long been environmentally sustainable. This cultivation over several millennia has enabled a wide variety of land and aquatic organisms to become adapted to the rice-field

58 aquatic system. The rice-field ecosystem is a mosaic of terrestrial and aquatic habitats, providing habitats for fish, amphibians, reptiles, crustaceans, mollusks and insects as well as various aquatic and freestanding plants. Local mammals and birds, migratory birds, as well as domesticated species such as ducks and cattle, also rely on rice vegetation for refuge and food. Overall, conservation of biodiversity is important as diversity of species and maintained complexity of ecosystem functions play a major role to stabilize agricultural systems, and ward off total harvest collapse. Effects of agro-chemicals: The excessive use of agrochemicals is widely recognized as a major source of air, water and soil pollution. As little as 20-40 percent of nitrogen fertilizer may be captured by rice, this percentage is even lower with improper timing of applications. Under such conditions the rice field as a water purification system would be severely compromised, and could cause the contamination of ground and surface waters. The indiscriminate use of pesticides could also lead to health problems for farm workers and transmission of residues along the food chain.

ECONOMIC IMPACT

Rise in standard of living: With growth in economic welfare, employment and education, the overall standard of living for the area would increase. This will promote government to install more institutions in the area such as cooperatives, health check up centers, farmer education centers, schools and others.

Growth of supporting industries: The growth of supporting industries will also be possible. Growth of industries such as retail shops, transportation services, and educational institutions will also be possible.

59 Rice as food in farming households: Apart from cash from rice sales, farmers also depend on RICK SUN RICE for domestic or household consumption. While preference for rice as a staple meal is generally on the increase nationally, it would appear that the expanded local output is geared partly towards meeting the increased household consumption needs of the rice farming households and their immediate rural communities where the consumption orientation is changing.

Health effects: Rice farming, processing and marketing would help to reduce poverty and improve the overall quality of life in producing communities. However, certain diseases are associated with rice production. Without boots, worms enter the skin and cause ill health. Due to hours of bending in the swamp fields, waist pain could be a serious health concern. During processing, respiratory-tract infections are especially common. Women suffer respiratory infections when harvesting.

EMPLOYMENT CONSIDERATION

Employment: There is huge number of farmers engaged in this farming. The obvious benefit of establish a partnership business for the increment of production and marketing of the RICK SUN RICE would be direct and indirect employment rice farmers will also engaged in providing casual labor for harvesting, shelling, bagging, loading and transporting rice. Likewise, other employment opportunities for transporters, employees in storage facilities, employment for marketing and distribution will also be generated. The number of direct and indirect employment cannot be yet

60 determined.

Education: With rise in consumption as well as employment, farmers would be able to pay for childrens education. The creation of wealth in rice production area has had a positive effect on the education of children

Social Interaction and Cohesion: The rice planting, harvesting and processing seasons are always happy seasons. People gather together during these seasons and help each other out. With the rise in plantation, there will be more social interactions between the farmers, retailers, and distributors. Rice selling would bring many enlightened people to the place and the local people would be able to improve their knowledge from such interaction. As such, the rice economy promotes national integration, awareness and modernization of the place.

61

APPENDICES

SSS CONTRIBUTION TABLE

62

PAG IBIG FUND TABLE

63
Empl oyee Share 100 112.5 125 137.5 150 162.5 175 187.5 200 212.5 225 237.5 250 262.5 275 287.5 300 312.5 325 337.5 350 362.5 375 387.5 400 412.5

Salary Bracket 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Salary Range 8,999.99 and below 9,000.00 - 9,999.99 10,000.00 10,999.99 11,000.00 11,999.99 12,000.00 12,999.99 13,000.00 13,999.99 14,000.00 14,999.99 15,000.00 15,999.99 16,000.00 16,999.99 17,000.00 17,999.99 18,000.00 18,999.99 19,000.00 19,999.99 20,000.00 20,999.99 21,000.00 21,999.99 22,000.00 22,999.99 23,000.00 23,999.99 24,000.00 24,999.99 25,000.00 25,999.99 26,000.00 26,999.99 27,000.00 27,999.99 28,000.00 28,999.99 29,000.00 29,999.99 30,000.00 30,999.99 31,000.00 31,999.99 32,000.00 32,999.9933,000.00 33,999.99

Salary Base 8,000.0 0 9,000.0 0 10,000. 00 11,000. 00 12,000. 00 13,000. 00 14,000. 00 15,000. 00 16,000. 00 17,000. 00 18,000. 00 19,000. 00 20,000. 00 21,000. 00 22,000. 00 23,000. 00 24,000. 00 25,000. 00 26,000. 00 27,000. 00 28,000. 00 29,000. 00 30,000. 00 31,000. 00 32,000. 00 33,000. 00

Total Monthly Premium 200 225 250 275 300 325 350 375 400 425 450 475 500 525 550 575 600 625 650 675 700 725 750 775 800 825

Employer Share 100 112.5 125 137.5 150 162.5 175 187.5 200 212.5 225 237.5 250 262.5 275 287.5 300 312.5 325 337.5 350 362.5 375 387.5 400 412.5

64
34,000.00 34,999.99 35,000.00 and up 34,000. 00 35,000. 00

27 28

850 875

425 437.5

425 437.5

PHILHEALTH CONTRIBUTION TABLE

CURRICULUM VITAE

65

Name Address Gender Birthday Place of birth Father Mother

: : : : : : :

Jeric Rosales Alap # 340 R. Mata St. San Guillermo Morong, Rizal Male April 14, 1990 Narra Palawan Juanito Toquero Alap Marieta Rosales Alap

EDUCATIONAL BACKGROUND

Tertiary

East Systems Colleges of Rizal Morong, Rizal Bachelor of Science in Business Administration 2010- Present

Secondary

Princess Urduja National High School Narra Palawan

Primary

Princess Urduja Elementary School Narra Palawan

EMPLOYMENT BACKGROUND

66 PHILCOLT METAL CRAFT 2010- Present Morong Rizal POEA On-The-Job Training BFO Bldg. Ortigas Ave., corner EDSA Mandaluyong, City PROVINCIAL GOVERNMENT OF RIZAL Antipolo, City, (SPES) 2012 LBC Navotas, City 2009

SEMINARS ATTENDED

PEOS (Pre Employment Orientation Seminar) 3rd floor POEA Bldg. BFO Bldg. Ortigas Ave., corner EDSA Mandaluyong, City EAGLE BROADCASTING Iglesia Ni Cristo District Office Taytay, Rizal