Hydroponics Farming - Team C (Final Copy) (1)

PFARM HYDROPONICS FARM A PROJECT FEASIBILITY STUDY ON ESTABLISHING HYDROPONICS FARM WITH COMPUTER-CONTROLLED SOLUTION SYSTEM IN STO. TOMAS CITY, BATANGAS 01 FEASIBILITY STUDY

INTRODUCTION PFARM HYDROPONICS FARM Farming is considered as the imperative piece of life for the human being because it is the elemental wellspring and other crude materials required for individuals. 02

Hydroponics or soil-less culture is a way to skip the soil, sub in aPFARM HYDROPONICS FARM different material to support the roots of the plant, and grow crops directly in nutrient-rich water. 03 Hydroponics

PFARM HYDROPONICS FARM 04 PFARM HYDROPONICS FARM LOGO

PFARM HYDROPONICS FARM Marketing Aspect Channel of Distribution Percentage of Distribution Tanauan City, Batangas: 72% 0 5 Sto. Tomas City Batangas: 28%

Marketing Aspect PFARM HYDROPONICS FARM Undecided 15% MARKET SURVEY Willing 85% 06

PFARM HYDROPONICS FARM Year Number of Annual Annual Establishment Consumpt Demand ion (Kilos) (Kilos) 2017 70 7,323 512,610 2018 78 7,323 571,194 2019 80 7,323 585,840 2020 87 7,323 637,101 2021 100 7,323 732,300 Historical Demand for Past Five Historical Demand (2017-2021) Year (kg) Marketing Aspect 07

Year a b X bX Projected Demand PFARM HYDROPONICS FARM 2022 363,403 65,015 6 390093 753,496 2023 363,403 363,403 7 455109 818,512 2024 363,403 363,403 8 520125 883,528 2025 948,543 363,403 363,403 9 585140 2026 363,403 65,015 10 650156 1,013,559 Projected Future Demand Projected Future Demand 08 Marketing Aspect

YearPFARM HYDROPONICS FARM Annual Supply Amount in Kilos (Kilos) 271,500 2017 352,872 2018 352,728 2019 393,588 2020 452,400 2021 Historical Supply for Past Five Year (kl) Historical Supply (2017- 2021) 09 Marketing Aspect

Year aPFARM HYDROPONICS FARMbXbXProjected Amount in KilosSupply 2022 243,862 40,251 6 241,509 485,372 2023 243,862 40,251 7 281,761 525,624 2024 243,862 40,251 8 322,012 565,875 Projected Future Supply 2025 243,862 40,251 9 362,264 606,127 Marketing Aspect 2026 243,862 40,251 10 402,516 646,378 Projected Future Supply 10

PFARM HYDROPONICS FARM Year Projected Projected Projected Demand Supply Unsatisfied 2022 (Kilos) (Kilos) Demand (kilos) 753,496 485,372 268,124 2023 818,512 525,624 292,889 2024 883,528 565,875 317,653 2025 948,543 606,127 342,417 2026 1,013,559 646,378 367,181 11 Projected Unsatisfied Demand Projected Unsatisfied Demand Marketing Aspect

PFARM HYDROPONICS FARM Year Projected Projected Projected Volume Unsatisfied Market 2022 (Kilos) Share Demand 148,139 (Kilos) 268,124 55.25% 2023 174,269 292,889 59.50% 2024 202,504 317,653 63.75% 2025 232,844 342,417 68.00% 2026 265,288 367,181 72.25% PFARM Market Share PFARM Market Share 12 Marketing Aspect

PFARM HYDROPONICS FARM 13 MARKETING ASPECT SWOT ANALYSIS

Technical Aspect PRODUCT DESCRIPTION PFARM Hydroponics Farm is the first and foremost hydroponic farm that will be established in San Pedro, Santo Tomas City. Kinds of green leafy vegetables: Hydroponics method: Lettuce, NFT System Pechay, Mustard, Chinese cabbage, Broccoli 1 4 Cauliflower.

Technical Aspect HYDROPONIC SYSTEM BY COMPUTER (PROSYSTEM AQUA) A hydroponic system controlled by a computer was developed and manufactured by Prosystem Aqua, a company based in Cordoba, Spain. This hydroponics device controls the water temperature, irrigation times, recirculation controller, pH content, and electrical conductivity. 15

PFARM HYDROPONICS FARM| Technical Aspect PROCESS FLOW 16

WORKING SCHEDULE PFARM HYDROPONICS FARM| Office/Admin: Monday – Friday Technical Aspect Production: Monday - Saturday Production Hours: 8:00 am – 5:00 pm Morning Break: 10:00 am – 10:15 am Lunch Break: 12:00 – 1:00 pm Afternoon Break: 3:00 pm – 3:15 pm 17

PFARM HYDROPONICS FARM| Production Schedule 2022 2023 2024 2025 2026 Total Days in a Year 365 365 366 365 365 24 24 24 24 24 Less: Holidays 52 52 52 52 52 Less: Sundays in a Year Possible No. Days of Production 289 289 290 289 289 Total days in a Year 365 365 366 365 365 Less: Holidays 24 24 24 24 24 Less: Sundays and Saturday in a Year 104 104 104 104 104 Possible No. for Admin/ Office 237 237 238 237 237 18 Production Schedule Technical Aspect

Plant Layout Vicinity Layout PFARM HYDROPONICS FARM| 19 Technical Aspect

Plant LayoutPFARM HYDROPONICS FARM| 20 Technical Aspect

Technical Aspect PFARM HYDROPONICS FARM| WASTE DISPOSAL 1.The defective crops that are damaged by pests are grinded and stored to be handed out to the local farmers to be used as organic fertilizers. 2.Wastes within the premises such as biodegradable and non- biodegradable are consolidated and segregated and will be handled to the city’s waste disposal management. 3.Liquid wastes accumulated are gathered inside the water treatment facility before it will be discharged to the public drainage system. 4.Liquids gathered from the hydroponics system will go to R.O. System for filtration and for removal of other compounds so that it can be reused 2 1 again in the hydroponics system.

Financial Aspect PFARM HYDROPONICS FARM| NOTES TO FINANCIAL STATEMENTS AND ASSUMPTIONS Calendar year of operation starts in 2022 of January. Work schedule will be 5 days a week; 24 days a month estimated. Employee salaries are payable every 15th and 30th day of the month. Production is projected to increase by 2% annually. The business start-up with 54,000,000.00 initial fund coming from partners. Partners shared equally. Raw materials, packaging materials are projected to increase 7-8% annually. Wages and salaries are projected to increase by 5% annually. Utility expense is projected to increase by 5% annually. The administrative cost is projected to increase by 5% annually. Selling price is projected based on the existing market price Discount is 1% of the gross sales annually. Accounts Receivable will be 10% annually. Fixed assets will depreciate over their life span with no residual value and estimated 5 years of useful life. 22 The entity is entitled to pay VAT and be registered as VAT Registered Business since its estimated gross sales is more than Php3,000,000.00

Financial Aspect PFARM HYDROPONICS FARM| COST FOR PROPERTY AND TOOLS 23

Financial Aspect PFARM HYDROPONICS FARM| WORKING CAPITAL FOR THREE MONTHS 24

Financial Aspect PFARM HYDROPONICS FARM| ADMINISTRATIVE EXPENSES 25

Financial Aspect PFARM HYDROPONICS FARM| PRE- OPERATING EXPENSES 26

Financial Aspect PFARM HYDROPONICS FARM| TOTAL PROJECT COST 27

Financial Aspect PFARM HYDROPONICS FARM| CAPITAL CONTRIBUTION 28

Financial Aspect PFARM HYDROPONICS FARM| PROJECTED INCOME STATEMENT 29

Financial Aspect PFARM Hydroponics Farm PFARM HYDROPONICS FARM| PROJECTED STATEMENT IN BALANCE SHEET PFARM Hydroponics Farm 30

Financial Aspect PFARM HYDROPONICS FARM| COMPARATIVE STATEMENTS OF CASH FLOW PFARM Hydroponics Farm 31

Financial Aspect PFARM HYDROPONICS FARM| EQUITY RATIO 32

Financial Aspect PFARM HYDROPONICS FARM| RATE OF RETURN ON ASSETS / ROI 33

Financial Aspect PFARM HYDROPONICS FARM| ANNUAL CASH FLOW 34

Financial Aspect PFARM HYDROPONICS FARM| PAYBACK PERIOD 35

Financial Aspect PFARM HYDROPONICS FARM| SUMMARY OF FINANCIAL RATIOS 36

PFARM HYDROPONICS FARM| Management Aspect COMPANY VISION To be the leading horticultural business using hydroponics while fostering sustainable development in the society and in the environment. COMPANY MISSION Committed to promoting a healthy lifestyle by growing vegetables that are hydroponically grown and nutritious, while preserving the environment from harm and species extinction 3 7 caused by overexploitation and intensive agricultural practices.

PFARM HYDROPONICS FARM| Management Aspect FORM OF ORGANIZATION General Partnership PURPOSE: A. To have an equal distribution of profit among partners. B. To allow the owners to draw on the resources and expertise of the co-partners. C. To easily and fairly manage the organization. 38

PFARM HYDROPONICS FARM| 22

PFARM HYDROPONICS FARM| Management Aspect BENEFITS AND SERVICES Statutory or Government Company Initiated Benefits Mandated Benefits Minimum Wage Service Incentive Leave Holidays Special Leave 40 Maternity Leave Paternity Leave Bereavement Leave Thirteen-Month Pay Parental Leave for Solo Parent Overtime Pay Wedding Leave Separation Pay Emergency Leave Retirement Pay Health Coverage PhilHealth Benefits Allowances During Business Social Security Benefits Perfect Attendance Incentive PAG-IBIG Benefits Company Uniform Company Activities and Gatherings

Socio-EconomicPFARM HYDROPONICS FARM| Apect BENEFITS TO SOCIETY Provide job opportunities Conduct trainings to help community project development Brings a high demand of people's needs for a healthy food intake in their diet, 41

Socio-EconomicPFARM HYDROPONICS FARM| Apect BENEFITS TO ENVIRONMENT Reduce carbon footprint Support the sustainable development and economic growth Ensure that its operation would not pose any negative effect on our surroundings. 42

Socio-EconomicPFARM HYDROPONICS FARM| Apect BENEFITS TO GOVERNMENT The business will help the government through taxes by doing its obligation to pay the right taxes. The management will strictly follow the government orders mandated for the agribusiness. 43

PFARM HYDROPONICS FARM|Socio-Economic Apect CORPORATE SOCIAL RESPONSIBILITY To economically survive as a private Agri-business, the firm must make sure that their enterprise stays profitable in the long term, this means a careful consideration of human rights, the community, environment, and society. 44

PFARM HYDROPONICS FARM| AGNOTE, ABIGAIL BURGOS, FERDINAND CORBANTES, PAUL MIKIE MADRIGAL, MELANIE MATIENZO, RONALYN 45 Meet the Team

PFARM HYDROPONICS FARM|Thank you! 46