A PROJECT PROPOSAL
ON
FOOD PROCESSING PRODUCTION
Requested for Funding by the
Onward for Growth and Utility of
Power (OGUP) Agriculture
Cooperative
Brgy. Sugod Proper, Marawi City
I. Executive Summary
The Onward for Growth and Utility of Power (OGUP) Agriculture
Cooperative, an active and operational cooperative in Marawi City and Lanao
del Sur has officers and members with a big Heart in helping the Maranaos not
only in times of calamities, but also in the daily living of people from all walks
of life.
“OGUP” means to help. This is where the members got their coop name, not
only to help themselves, their cooperative members but also their families and
the Muslim UMMAH. Their commitment is seen and felt during the recent
Marawi Siege. Their cooperative was, despite being newly born strived hard and
was able to put up a Sari sari store at the center of Brgy. Sugod but was lost
by robbers and looters. They took opportunity that everybody evacuated and
took all the items the cooperative have just invested.
Despite the losses, the group did not stop. There is an urge that members
have to go on. Their belief is “It is not the end of the World.” Everybody
needs help. They therefore strengthened their oneness. While others are busy
retrieving share capital and replenishing small amount, others are also busy in
trainings and seminars for skills and product improvement.
The general assembly’s final decision is to focus on Food Processing
Production since there is a great market not only in local communities but
also in outside nearby cities and even abroad. There is just a need to enhance
and improve the quality of their product and also the kind of packaging they
have.
The estimated budgetary requirement:
1. Department of Agriculture
Agricultural Credit Policy Council (ACPC) P10, 000,000.00
Constant Monitoring & Evaluation of the project shall be conducted by
concerned officers in order to make sure of increase of income and minimize
losses.
II- INTRODUCTION
A. Organization Description
The Onward for Growth and Utility of Power (OGUP) Agriculture Cooperative
is a duly registered cooperative with the Cooperative Development Authority-
Autonomous Region in Muslim Mindanao (CDA-ARMM) in year 2017, but was
organized in year 2014. “Ogup” is a Maranao term which means to help. This
was given meaning by the officers with emphasis on helping their own selves,
their families and their communities making use of their unity, knowledge,
strength and resources that they may be able to attain economic stability and
better living condition.
The previous area of operation of the cooperative was in Brgy. Bago a Ingud,
Ditsaan Ramain, Lanao del Sur but the cooperative store was located in Brgy.
Sugod Marawi City. The General Membership decided to transfer the official
station or address from Brgy. Bago a Ingud, Ditsaan Ramain to Brgy. Sugod
Marawi City. This is due to the reason that most members and even non-
members could best be served if the coop center be located at Brgy. Sugod,
Marawi City, and it is also accessible to all members, officers and even
community residents.
There are twenty six (26) original members who are both graduates of the
Alternative Learning System (ALS) including the trainers of the program who
jointly pooled their meager resources together to form a small group business.
B. Project Background
The first operation of the cooperative is on a sari sari store or basic
commodities trading. The members use their share capital. However, members
were saddened by recent Marawi Siege that happened. Their small investment
was lost not by bombs but robbers or looters. Their newly established
cooperative store was gone and nothing was left to them except problem on
how to regain it back and pay their loan.
There is a need for the cooperative to recover back their lost capital. They
have to restore it, not only for themselves as members, but for their families
and to help the home –based evacuees, who at that time experienced scarcity of
food and other necessities and if there are available stores, cost of commodities
rose up that evacuees and even residents had a problem of purchasing some.
Members again pooled whatever capital they may contribute and engaged
into food production out of the members’ farm products. While other members
find means of selling small grocery items in some parts of Bubong, Ditsaan
Ramain and Mulondo, others also tried learning more and undergo trainings
on Food Processing Production like Palapa Making, a Maranao spicy delicacy
and appetizer. Peanut Butter, Dressed Chicken, Ice Cream, Fresh Chicken,
Ground Meat, Bunch Burger Making, and others. Members sell their products
at the local markets to earn more and to regain back their lost business.
“Palapa” is one of the best appetizers produced by the Maranaos or the
People along the Lake Lanao. This is most loved by not only the Maranaos but
also those from other parts of Mindanao, Visayas and even Luzon. The
ingredients are commonly grown in the mountainous towns of Madalum,
Madamba, Calanogas and other towns surrounding Lake Lanao. “Sakurab” or
“sibudjing” among Cebuanos are best suitable in hilly areas. This is a variety
of onions that grows in cold places. Ginger or luya and siling labuyo to make
the product hot and spicy are also grown in most parts of the province of Lanao
del Sur. “Palapa” is a product that is commonly sold in markets of Marawi
City, Saguiaran, Marantao and other nearby towns.
The cooperative members decided to process and sell this kind of product
since its resources are locally available in the market and also produced by
many Maranao farmers. They may be able also to promote the product that
they may call their own.
C. The Problem
The cooperative officers and members intend to solve the following problems:
1. Lack of sufficient capital to engage in “Food Processing Production
business;
2. Members and officers need more skills and expertise on preserving
and packaging Palapa that it may reach other countries for export;
3. Numerous Maranao delicacies produced at the local market are not
preserved and packed well and do not maintain sanitary practices
causing producers to stop selling and which results to failure; and
4. Lack of exact selling practices and techniques to increase income by
increase the volume of business.
D. Goal and Objectives:
The project aims to economically uplift coop members’ living condition by
engaging into Food processing Production and selling it to local markets and
members may be able to pay the loan the acquired and enjoy the benefit of
group business by being a cooperative member.
Specifically, the following shall b e the objectives:
1. To be able to strengthen the Food Processing Production project of the
Cooperative and increase production;
2. To continue the capital Build up Program and savings of the cooperative
to generate capital for the business;
3. To request or apply for financial assistance from line agencies, nor
government organizations and other offices;
4. To be experts on food preservation and packaging;
5. To be able to pay the loan acquired from the PPSTA;
6. To be able to encourage farmer-members to produce more the
ingredients necessary for the Palapa business, Food Processing
Production and for them to earn more;
7. To provide better health to customers considering that this product is
not only an appetizer but is a healthy and medicinal food. Local
resources are also produced organically.
E. Beneficiaries
The beneficiaries for the project are the following:
1. Cooperative Members themselves;
2. Their families;
3. The community residents;
4. Farmer-producers of sakurab, ginger, siling labuyo and coconut (An
opportunity for a good market.)
5. Small vendors and business men and women in Marawi City, Lanao
del Sur and other nearby cities and provinces;
6. Internally displaced persons (IDPs) or individuals and private firms
who will engage into direct selling of the products.
F. Proposed Methodology
The Board of Directors spearheaded by the Chairman of the Board shall
lead the proposed project. They formulate plans and programs and leads the
implementation. Constant meetings of the Board, Committees and the general
assembly shall be conducted to help materialize production and processing.
The general Manager heads the staff in the day-to-day business operations
of the cooperative. Members of the Management Staff are the following:
Manager, Bookkeeper, Sales/Procurement Officer, Consultant Honorarium and
security.
E.1. Partners of the Cooperative are the following:
1. Cooperative Development Authority-Autonomous Region in Muslim
Mindanao (CDA-ARMM), ORG Comp., Cotabato City;
2. Department of Agriculture
28th Floor, One San Miguel Avenue Building, San Miguel Avenue, corner
Show Blvd., Ortigas Center, Pasig City 1605;
3. Department of Trade and Industry (DTI) Iligan City Office, Region X, Iligan
City;
4. Cooperative Development Authority Kidapawan Extension Office (CDA-
KEO), Region XII, Kidapawan City with satellite office address at Matampay,
Marawi City;
5. Mindanao State University- Iligan Institute of Technology (MSU-IIT), Office of
Research and Extension;
6. Department of Education -Alternative Learning System (Dep Ed-ALS),
Ditsaan Ramain;
7. Farmer-Producers of Sakurab, ginger, siling labuyo, and
8. Business partners both private, in groups and individual direct or indirect
selling.
F.2 Project Implementation
Date Activities Persons Source of Amount
Responsibl Fund
e
1. April 1-3, Enhancement -Board of Coop fund P2,500.00
2020 of Food Directors
Processing -Officers
Production -Members
product
packaging
2. April 1, -Board of Coop fund P25,000.00
2020 Continue Directors
production and -Mgt. Staff
direct selling -Other
Officers
-Members
3. April 3-30, -Board of Coop fund P1,500.00
2019 Meetings Directors
-Secretary
-Treasurer
-Manager
-Committee
Officers
4. May 1-10, -Chairman, - -
2020 Planning -Vice
chairman
5. May 11, -BODs Coop fund P5,000.00
2020 Project -General
Proposal Manager
Making -Secretary
-Treasurer
-Partner
agency
6. May 21, -Chairman Members’ P1,500.00
2020 Submission of -Secretary contributio
application for -Treasurer n
assistance/Loa
n from
Department of
Agriculture,
San Miguel
Ave., cor., Show -
Blvd, Ortigas
Center, Pasic
7. February City -BODs
25, 2019 to -Other
present Officers
-Monitor -Secretary
product supply -Treasurer
and demand in -Members
the market
-Continue
production
-Improve
quality,
sanitary
practices and
increase of
income
-Continue
coordinating
with
Department of
Agriculture,
San Miguel
Ave., cor., Show
Blvd, Ortigas
Center, Pasic
City P35,500.0
other agencies 0
for
improvement.
Total
Expenses
F.3. Proposed Budget
Initial finding of the cooperative members shows that there is an increase
in the demand of the product. The local market at present asks for more Food
Processed “Palapa” product, Peanut Butter, Chicken dressed, Ice cream, Fresh
Chicken, Ground Meat and Bunch Burger that the members have started
selling. However, the group finds it difficult to produce due to lack of
equipment necessary for more production. The following are the proposed
budgetary amount to be requested:
Particular Source/Location Amount
1. Procurement of agri-products To be requested
per delivery (based on capacity from the
of available vehicle tracking Department of
service/s being used): Agriculture, San
Miguel Ave., cor.,
Show Blvd, Ortigas
a. Palapa(flavored)120.00/bottle Center, Pasic City 360,000.00
x3000 bot. = 3 tons
b. Peanut Butter 160.00/bottle 240,000.00
x 1,500 bot. = 1.5 tons
c. Chicken (dressed)
150.00/kilo x 2,500 375,000.00
= 2.5 tons
d. Ice Cream 230.00/gallon x 276,000.00
1,200 gallons
=1,200 gallons
e. Fresh Chicken 110.00/kilo x 275,000.00
2,500
= 2.5 tons
f. Ground Meat 230.00/kilo x
600 kgs. P150,000.00
= 6 tons
g. Bunch Burger 25.00/each x
3,200 pcs P 80,000.00
Operational Expenses
(cost of fuel, sacks, crates, wages of
classifiers / baggers, drivers and
haulers)
Fuel (6,000 per day) = weekly P 42,000.00
Supplies/baggers (1.5 per each x
6,000 x 7 days = weekly P 63,000.00
Laborers /Wages (300 per day x 12
laborers x 7 days) = weekly P 25,200.00
Admin Expenses (pro-rated per
delivery)
(Salary/wages of additional staff to
facilitate admin services like
payments, honorarium of officers
involved in the operations. Office
supplies/taxes/cost of permit to
transport (if any)
Admin Expenses:
Salary of Management & staff:
-Manger (4,000 per week) P 4,000.00
-Bookkeeper (3,500 per week) P 3,500.00
-Sales Officers(3,000 per week) P 3,000.00
-Security (1,000 per week) P 1,000.00
-Consultant Honorarium P 1,000.00
(1,500 per week)
Total Fund requirement per delivery P1,899,200.00
Weekly Fund Requirement
Times No. of deliveries per month
Four (4) deliveries per month P7,596,800.00
P1,899,200.00 x 4 weeks
Add:
2. Procurement of 1-unit Hauler P1,500,000.00
Truck. To be requested
from Department of
Agriculture, San
Miguel Ave., cor.,
Show Blvd, Ortigas
Center, Pasic City
3. Provision of the processing area P 903,200.00
(1- unit Warehouse) To be requested
from Department of
Agriculture, San
Miguel Ave., cor.,
Show Blvd, Ortigas
Center, Pasic City
Total Estimated Working Capital P 10,000,000.00
Requirement
Estimated Total Sales per Month
Sales of Palapa(Flavored)
150/bot. x 3,000 bot. P 1,800,000.00
Sales of Chicken 180.00 x 2,500 kgs. 1,800,000.00
Sales of Peanut Butter 180/bot. x
1,500/bot. 1,080,000.00
Sales of Ice Cream 260.00/gallon x
1,200 1,248,000.00
Sales of Fresh chicken
(Marinated)140/kg x 2,500 kgs. 1,400,000.00
Sales of Ground Meat 250.00/kg x
600 kgs. 600,000.00
Sales of Bunch Burger 30.00/each x
3,200 96,000.00
Estimated Gross Profit per Month
Total Sales per Month P 8,024,000.00
Less: Cost of Sales & Other Expenses 7,596,800.00
Gross Profit (Monthly)
P 427,200.00
F5. Financial Statement Analysis
1. Cost Benefit Analysis Year 1
Sales P 50,000.00
Cost of Sales P 32,500.00
Net Profit P 177,500.00
2. Return of Investment 32%
3. Cash Payback Period 3 years
F6. Financial Assumption
1. Cost of materials for the production of the product is 40%.
2. Depreciation is 10 years.
3. 20% increase annually for the production of palapa and other
products. .
4. Cost of labor including salaries is 30%.
5. Other assumptions are not included because they are minimal and
don’t affect the result of operation.
G. Assessment/Monitoring/ Evaluation and Reporting
Two assessments shall be conducted every year (mid year and year end
assessment) which compose of both the Production aspect and Sales. The
flow of increase in both shall be monitored.
Coop BODs, Officers like the Audit & Inventory Committee, Secretary,
Treasurer, Management Staff and other concerned officers shall perform
functions for reporting and present it to the General Membership and
submit copies to CDA,DA, DTI and other agencies concerned.
