CRS002 PRACTICES ON CROP PRODUCTION)

A MARKET FEASIBILTY STUDY ON THE ESTABLISMENT OF

DURIAN FARM IN SOCCSKSARGEN

Presented to MRS.ESTRELLA LASISTE

Faculty, Department of Agronomy
College of Agriculture Mindanao State University
Fatima, General Santos City

In partial fulfillment of the requirements

for the course CRS 002- Practices of Crop Production

Joshua P. Salce

NOVEMBER 20
 CRS002 PRACTICES ON CROP PRODUCTION)

INTRODUCTION/BACKGROUND

This business shall be called GRANDEUR DURIAN FARM. The name has been
chosen to emphasize that the durians that are grown and marketed by the South
Cotabato farmers are health-friendly and addresses the demand for more ecological
and human friendly food sources apart from it providing income to a large number of
fruit grower from the place. Durian (Durio zibethinus Murr.) belongs to the genus
Durio and the family Bombacaceae, which is best known for showy flowers and
woody or thin-shelled pods filled with small seeds and silky or cotton like fiber. It is the
most important native fruit of southeastern Asia and neighboring islands. Widely
known and revered in southeast Asia as the "king of fruits", the durian is distinctive for
its large size, unique odor, and formidable thorn-covered husk.

TYPE OF BUSINESS ORGANIZATION

The project will adopt a sole proprietorship type of business organization.Sole

proprietorship type of business organization is one which is owned and run by an
individual and where there is no legal distinction between the owner and the
business.All assets of the business are owned by the proprietor and all the debts of
the business are proprietor debts and he must pay it from his personal resources
which will result to unlimited liability.

LOCATION OF THE PROJECT

Mr.Joshua P. Salce owned a 1 hectare of land in Tupi,South Cotabato. The

proposed had been chosen by Mr.Salce considering such factors like climatic
conditions, ideal soil type, appropriate elevation and access to water.The Grandeur
Durian Farm will be situated in Tupi,South Cotabato.The area comprises
approximately more than 2.48 acres (1 hectare) of unutilized land. The topography of
the area is a rich deep,well-drained sandy clay or clay loam which is best for durian
tress to grow.Heavy clay soils are not supportive of good durian tree growth and
health,as they do not drain well.
 CRS002 PRACTICES ON CROP PRODUCTION)

SOURCE OF CAPITAL

Funding of Grandeur Durian Farm general operation and other financial demands
will be sourced from the saving of the proprietor.Mr.Joshua P. Salce will invest
P4,000,000.00 in the business.

MARKETING ASPECT

Description of the Product

The durian tree, reaching 27 to 40 meters in height in tropical forests, is usually

erect with short, straight, rough, peeling trunk to 1.2 meters in diameter, and irregular
dense or open crown of rough branches, and thin branchlets coated with coppery or
gray scales when young.

The fruits are ovoid or ovoid-oblong to nearly round, 15 to 30 cm long, 12.5 to 15

cm wide, and up to 8 kg in weight.The yellow or yellowish-green rind is thick, tough,
semi-woody, and densely set with stout, sharply pointed spines, 3- to 7-sided at the
base.Handling without gloves can be painful. Inside there are 5 compartments
containing the creamy-white, yellowish, pinkish or orange-colored flesh and 1to 7
chestnut-like seeds, 2 to 6 cm long with glossy, red-brown seed coat. In the best fruits,
most seeds are abortive. There are some odorless cultivars but the flesh of the
common durian has a powerful odor Some fruits split into 5 segments, others do not
split, but all fall to the ground when mature.

Durians are sold whole, or cut open and divided into segments, which are
wrapped in clear plastic. The flesh is mostly eaten fresh, often out-of-hand. It is best
after being well chilled in a refrigerator. Sometimes it is simply boiled with sugar or
cooked in coconut water, and it is a popular flavoring for ice cream. Durian flesh is
canned in syrup for export. It is also dried for local use and export. Blocks of durian
paste are sold in the markets. The unripe fruit is boiled whole and eaten as a
vegetable
 CRS002 PRACTICES ON CROP PRODUCTION)

Pricing

Price of the Durian in SOCCSKSARGEN varies during its peak season as well as
during the lean season.In the Philippines the peak period of durian is from August to
October. The listing of the durian prices for both season (peak and lean) is shown in
table 1.

Table 1. Wholesale buying price by location (per kilogram)

Cotabato South Sarangani Sultan

Cotabato Kudarat
Peak Lean Peak Lean Peak Lean Peak Lean
Durian 70-100 45-50 60-90 34-45 70-100 40-50 70-120 40-50
Source: Fruit Market Research in South Cotabato 2019

Prices of durian vary over time within a particular market.The current farm gate
price of durian in the Philippines is around P70 per kilogram(kg) while its market price
ranges to P90-P100 per kilogram(kg). The quality of durian fruit, however, also plays
an important role as determinant of the final price. It also varies between markets at
any one time because of the different market specifications, end use and supply
source. The durian commands a better price and higher price in early August.

Market Area

Fresh Durian coming from Grandeur Durian Farm are marketed and delivered
directly to Cotabato,South Cotabato,Sarangani and Sultan Kudarat markets.

Main Customers and Distribution Channel

The main customers of the Durian Fruits of Grandeur Durian Farm are mostly the
wholesale buyers of Cotabato City and South Cotabato City. Like in many other
places,fresh durian coming from Grandeur Durian Farm pass through wholesalers
and retailers before they reach to the consumers’ level. The wholesaler is responsible
for assembling and retailing the produce and financing production and marketing.
However, there are instances where the channels of distribution tend to vary with the
value and degree of perishability of the durian fruit.
 CRS002 PRACTICES ON CROP PRODUCTION)

The owner of Grandeur Tomato Farm sell their products based on market
feedback. It means that the fruit grower themselves inquire from their prospective
buyers some product specifications such as the buyers’ volume requirement, terms
and mode of payments, delivery arrangements and especially price even prior to
actual production of the said fruit product.

Marketing Systems

Marketing arrangements for durian fruit vary widely from region to region and will
depend on the type of production system involved. The choice of a market outlet is
influenced by the prices offered and the existence of alternatives. Other
considerations include the perishability of the product, urgent need of money for farm
operations, credit tie up arrangements with buyers and farmers’ attitudes (Librero et
al. 2004)

Demand and Supply Analysis

Total Demand

In considering the demand of the product,4 markets are being considered,the

Cotabato City,Sarangani,Sultan Kudarat and lastly the South Cotabato markets.Table
2 shows the demand of the Durian Fruit in these markets.

Table 2. Volume of Durian required in the market

Volume of Durian required(in metric tons)

TOTAL
COTABATO SOUTH SARANGANI SULTAN
COTABATO KUDARAT

DURIAN 4976.80 587.80 103.50 37.48 5,705.58

Source: UDP Fruit Market Research 2019

Total Supply

Bulk of the supply of Durian Fruits mainly come from the city of Davao and
Tupi.Since the major market is at Cotabato City and South Cotabato, data on the fruit
product supply that would plough in to these major markets are shown in Table 3.
 CRS002 PRACTICES ON CROP PRODUCTION)

Table 3. Volume of tomatoes supply in the market

Volume of Durian supply(in metric tons/year)
TOTAL
COTABATO SOUTH SARANGANI SULTAN
COTABATO KUDARAT

DURIAN 2,108.36 488.24 105.40 21.02 2,723.02

Source: Production of Selected Fruit Crops by Province, SOCCSKSARGEN:2018

South Cotabato was ranked number one in fruit crops production in

SOCCSKSARGEN Region with a 52.06 percent share in the region’s total fruit
production in 2019. But in terms of Durian Production Cotabato ranked 1st in
supplying durian in SOCCSKSARGEN.

Demand and Supply Gap Analysis

The demand and supply gap analysis of the tomatoes in South Cotabato can best
be described through the table below:
Table 4. Demand and supply gap of the tomatoes in South Cotabato
DURIAN
Total Demand of Total Volume of Demand-
Durian required(in Durian supply(in Supply Gap
MARKET metric tons/year) metric tons/year) (metric tons per
year)

COTABATO 4,976.80 2,108.36 2,868.44

SOUTH 587.80 488.24 90.56
COTABATO
SARANGANI 103.50 105.40 -1.9
SULTAN 37.48 21.02 16.46
KUDARAT
TOTAL 5,705.58 2,723.02 2,974.56

The table shows us that there is a higher demand in South Cotabato,Cotabato

City and Sultan Kudarat of Durian fruit while the supply there is not enough to reach
the number of demand in the area.On the other hand in Sarangani Province there is a
higher supply than its demand.Therefore in the areas of South Cotabato,Cotabato
province and Sultan Kudarat it is very good to have a durian farm because of its
higher demand and also the market there is good and it will result to be a good impact
to the business.
 CRS002 PRACTICES ON CROP PRODUCTION)

Marketing Channel

According to the recently conducted fruit market research in SOCCSKSARGEN,

fruit supply chain in the area followed the three (3) layer marketing to wit:

This situation reaffirms the national data that durian pass through the wholesalers
and retailers before they reach consumers. Most often, the wholesaler is responsible
for assembly and retailing the produce and financing production and marketing

Promotional Measures

In order to entice more buyers of the products,Grandeur Durian Farm owner

Mr.Salce should not forget to promote his products by way of the following system:

a. Maintain good business relationship with existing buyers such as delivery of

agreed volume and quantity of quality products on time, honesty in dealing
with the business partners and many others.
b. Take an extra effort at maintaining and expanding market networks thru
participation in locally organized agri-trade fairs, .
c. Regular participation to locally scheduled agri-trade fairs, market forum as
well as market encounters.
d. Distribution of fliers that will more or less contain the following capsulized
information:
 Name of farmer/producer
 Types of vegetable grown
 Planting/ harvesting calendar
 Production Capacity
 Farm location (including information on the accessibility of the farm to
market road)
 Indicative farm gate prices to entice the interest of buyers
 CRS002 PRACTICES ON CROP PRODUCTION)

e. Maximizing the linkages built by the assisting line government agencies (e.g. DA
and UDP) to avail marketing support services for client growers.

SWOT ANALYSIS

Strengths

They have their own farm which is the source of raw durian.100% pure durian
with no preservatives.

Weakness

Grandeur Durian Farm is not yet known so that it is weak in terms of

popularity.Higher price compared to its competitors because it still new so they need
to higher their pricing so that they will gain income.

Opportunities

Coordinating with tourism-establishments like hotels and restaurants to offer their

products.The market here in SOCCSKSARGEN are good in terms of durian
production,so they will have a good market.

Threats

The market is characterized with similar and differentiated.Consumers in the

market are price oriented.
 CRS002 PRACTICES ON CROP PRODUCTION)

REQUIREMENTS IN THE ESTABLISHMENT OF ONE-HECTARE DURIAN

ORCHARD

1) Equipment and tools

Quantity Item Unit Price (P) Cost (P)

2 units spade 650.00 1,300.00
2 units shovel 350.00 700.00
2 units bolo 350.00 700.00
2 units watering can 125.00 250.00
1 unit weighing scale 1,200.00 1,200.00
1 unit plastic pail 60.00 60.00
Sub-total 4,210.00

2) Supplies and materials

Quantity Item Unit price (P) Cost (P)

172 pcs Grafted durian seedlings 60.00/pc 10,320.00
100 m Rope (1.27 cm thick) 7.00/m 700.00
156 pcs Bamboo stakes (1.0 m) 2.00/pc 312.00
1 pc Meter stick 60.00/pc 60.00
1 pc Triangular stick 25.00/pc 25.00
Complete fertilizer 1,200.00/bag (50
8 kg (14-14-14) kg) 192.00
936 poles Kakawate (1.5 m) 2.50/pole 2,340.00
468 pcs Coconut fronds 2.00/pc 936.00
3 rolls Plastic twine 120.00/roll 360.00
Sub-total 15,245.00

3) Labor
Activity Man-Day (MD) Cost (P)
Land clearing 12 2,400.00
Plowing and harrowing 12 3,600.00
Lay-outing and staking 3 600.00
Digging holes and basal fertilization 3 600.00
Planting 2 400.00
Putting of shades per plant 6 1,200.00
Watering (2 MD/week for 12 weeks ) 42 8,400.00
Drainage construction 6 1,200.00
Replanting 1 200.00
Sub-total 18,600.00

*Labor cost at Php 200.00/MD and 300.00/man-animal day

 CRS002 PRACTICES ON CROP PRODUCTION)

Summary of cost of establishing a hectare durian farm

Particulars Amount
Equipment and tools 4,210.00
Supplies and materials 15,245.00
Labor 18,600.00
Total 38,055.00

COST FOR TRAINING AND PRUNING ACTIVITIES

1) Cost of tools and materials for training and pruning

Year Pruning Cost Pruning Cost Total Cost

shear (P) Saw (P) (P)
1 1 650.00 650.00
2
3 -
4 1 650.00 650.00
5 1 700.00 700.00
6
7
8
9 1 700.00 700.00
10

2) Cost of training and pruning activities

Year Cost of Tools Labor Cost (P) Total Cost (P) Per tree
per ha.
1 650.00 200.00 850.00 5.45
2 200.00 200.00 1.28
3 200.00 200.00 1.28
4 650.00 400.00 1,050.00 6.73
5 700.00 400.00 1,100.00 7.05
6 400.00 400.00 2.56
7 600.00 600.00 3.85
8 600.00 600.00 3.85
9 700.00 600.00 1,300.00 8.33
10 600.00 600.00 3.85

Training will be done as early as first and second year. Pruning activities
include removal of low-lying branches, dead, broken or diseased twigs or
branches and water sprouts.
 CRS002 PRACTICES ON CROP PRODUCTION)

COST OF WEEDING AND UNDERBRUSHING ACTIVITIES

Year Tools Cost Weeding1 Cost Under-brushing2 Cost Total per

(Grass-hook) (Php) MD (Php) MD (P) Cost (P) tree
per
hectare
1 3 750.00 6 1,200.00 12 2,400.00 4,350.00 27.88
2 6 1,200.00 12 2,400.00 3,600.00 23.08
3 3 750.00 6 1,200.00 12 2,400.00 4,350.00 27.88
4 6 1,200.00 12 2,400.00 3,600.00 23.08
5 3 750.00 6 1,200.00 12 2,400.00 4,350.00 27.88
6 12 2,400.00 12 2,400.00 4,800.00 30.77
7 3 750.00 12 2,400.00 12 2,400.00 5,550.00 35.58
8 12 2,400.00 12 2,400.00 4,800.00 30.77
9 3 750.00 12 2,400.00 12 2,400.00 5,550.00 35.58
10 12 2,400.00 12 2,400.00 4,800.00 30.77

1. Ring weeding at a distance of 1 meter from the trunk for 1-5 years old and
canopy drip for 6-10 years old trees will be done at 2 months interval.

2. Clearing the spaces in between rows of trees with weeds will be done 4
times a year
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COST FOR FERTILIZATION ACTIVITIES

1) Cost of tools and materials needed in fertilization

Ye Plasti Cos Complet Cost Ammo Cost Folia Cost Mur Cost Chic Cost Total
ar1 c Pail t (P) e (P) -nium (P) r (P) iate (P) ken (P) Cost
(pc) Fertilizer Phosp Ferti- of Dung (P)
(14-14-1 hate lizer Pot (bag
4) (16-20 (pac ash s)2
(bags)2 -0) ks)2 (0-
(bags) 060
2
)
(ba
gs)
2

1
1,30 2 440 -
2 - - 3 3,600 1 5,340
0
5,20 3 660 11 660
3 1 60 6 7,200 4 13,780
0
4 16 19,200 - - 4 880 3 4,800 26 1560 26,440
5 - 19 22,800 - - 5 1,100 3 4,800 52 3,120 31,820
6 1 60 22 26,400 - - 5 1,100 5 8,000 78 4,680 40,240
7 25 30,000 5 1,100 6 9,600 104 6,240 46,940
5 1,100 8 12,80 104 6,240
8 28 33,600 53,740
0
5 1,100 8 12,80 104 6,240
9 1 60 28 33,600 53,800
0
5 1,100 8 12,80 104 6,240
10 28 33,600 53,740
0

1. Fertilization requirements for the first year is already included in the

establishment.
2. Prices of fertilizers are:
14-14-14 = P1,200.00 bag (50 kgs/bag); 16-20-0 = P1,300.00/bag (50 kgs/bag);
0-0-60 = P1,600.00/bag (50 kgs/bag); foliar fertilizer = P220.00/pack (100 g/pack);
and chicken dung = P60.00/bag (30 kgs/bag).
 CRS002 PRACTICES ON CROP PRODUCTION)

2) Cost analysis of fertilization activities

Year Tools and Supplies Labor (P) Total Cost (P) Per tree
(P) Per hectare

1
2 5,340 800.00 6,140.00 39.36
3 13,780 1,800.00 15,580.00 99.87
4 26,440 2,000.00 28,440.00 182.31
5 31,820 2,000.00 33,820.00 216.79
6 40,240 2,000.00 42,240.00 270.77
7 46,940 2,000.00 48,940.00 313.72
8 53,740 2,000.00 55,740.00 357.31
9 53,800 2,000.00 55,800.00 357.69
10 53,740 2,000.00 55,740.00 357.31

Cost of fertilization for 1 year is included in the cost of establishment

COST OF IRRIGATION ACTIVITIES

1.Cost of tools and labor for irrigation activities

Year Tools Labor (P) Total Cost (P) Per tree2

Watering Cost (P) Per hectare
Can
1 - - 3,600.00 3,600.00 23.08
2 - 4,800.00 4,800.00 30.77
3 3 375.00 7,200.00 7,575.00 48.56
4 7,200.00 7,200.00 46.15
5 - 7,200.00 7,200.00 46.15
6 4 500.00 9,600.00 10,100.00 64.74
7 9,600.00 9,600.00 61.54
8 - 9,600.00 9,600.00 61.54
9 4 500.00 9,600.00 10,100.00 64.74
10 9,600.00 9,600.00 61.54

Cost of irrigation for the first 3 months of the plants in the field is included in the
cost of establishment.
 CRS002 PRACTICES ON CROP PRODUCTION)

COST OF PROPPING ACTIVITIES

Year Bamboo Cost (P) Tying Cost (P) Labor Total Cost Per tree
Poles1 Materials (P) (P) Per
(pcs) (kgs) hectare

1 - - - - - - -
2 - - - - - - -
3 - - - - - - -
4 - - - - - - -
5 468 7,020.00 4 600.00 400.00 8,020.00 51.41
6 6 900.00 600.00 1,500.00 9.65
7 10 1,500.00 800.00 2,300.00 14.74
8 10 1,500.00 800.00 2,300.00 14.74
9 468 7,020.00 10 1,500.00 800.00 9,320.00 59.74
10 10 1,500.00 800.00 2,300.00 14.74

Bamboo poles will be utilized only during fruiting season and keep for the next fruiting
season.
COST OF MANAGING PESTS AND DISEASES

a. Cost of tools/equipment and materials

Tools/Equipment Pesticides1 Total Cost
Year Knapsack Cost Insectici Cost Fungicid Cost (P)
Sprayer (P) de (P) e (P)
(li) (kgs)
1 1 3,500.00 0.5 475.00 0.5 325.00 4,300.00

2 0.5 475.00 0.5 325.00 800.00

3 1 950.00 1 650.00 1,600.00
4 2 1,900.00 3 1,950.00 3,850.00

5 2 1,900.00 4 2,600.00 4,500.00

6 1 3,500.00 3 2,850.00 5 3,250.00 9,600.00

7 3 2,850.00 7 4,550.00 7,400.00

8 4 3,800.00 7 4,550.00 8,350.00

9 4 3,800.00 8 5,200.00 9,000.00

10 4 3,800.00 8 5,200.00 9,000.00

Prices of pesticides are as follows:

Insecticide = P950.00/li and Fungicide = P650.00/kg.
 CRS002 PRACTICES ON CROP PRODUCTION)

b. Cost analysis of managing pests and diseases

Cost of
Equipment and Labor Cost
Year Pesticides (P) Total Cost per Cost per tree
(P) hectare
(P)

1 4,300.00 800.00 5,100.00 32.69

2 800.00 800.00 1,600.00 10.26
3 1,600.00 1,200.00 2,800.00 17.95
4 3,850.00 1,200.00 5,050.00 32.37
5 4,500.00 1,600.00 6,100.00 39.10
6 9,600.00 1,600.00 11,200.00 71.79
7 7,400.00 2,000.00 9,400.00 60.26
8 8,350.00 2,000.00 10,350.00 66.35
9 9,000.00 2,400.00 11,400.00 73.08
10 9,000.00 2,400.00 11,400.00 73.08
 CRS002 PRACTICES ON CROP PRODUCTION)

COST FOR HARVESTING ACTIVITIES

Cost
Supplies
(P) Total Cost (P)
Year (Kaing)1 Labor (P) Per tree
Per hectare

1 - - - -
2 - - - -
3 - - - -
4 2 400.00 800.00 1,200.00 7.69
5 1,200.00 1,200.00 7.69
6 4 800.00 1,600.00 2,400.00 15.38
7 1 200.00 3,000.00 3,200.00 20.51
8 5 1,000.00 3,600.00 4,600.00 29.49
9 3 600.00 4,800.00 5,400.00 34.62
10 5 1,000.00 6,000.00 7,000.00 44.87

Price of kaing is P200.00/pc which will be used only in hauling the fruits.
 CRS002 PRACTICES ON CROP PRODUCTION)

Summary of Establishment and maintenance cost for one hectare durian orchard.

Year Establish-ment2 Training/ Weeding/ Fertilization Irrigation Propping Managing Harvesting Total Cost Total
(P) Pruning Under-brushing (P) (P) (P) Pest & (P) per Cost
(Php) (P) Diseases hectare (P) per tree
(P) (P)

5,100.00
1 38,055.00 850.00 4,350.00 3,600.00 - - 51,955.00 333.04
1,600.00
2 200.00 3,600.00 6,140.00 4,800.00 - - 16,340.00 104.74
2,800.00
3 200.00 4,350.00 15,580.00 7,575.00 - - 30,505.00 195.54
5,050.00
4 1,050.00 3,600.00 28,440.00 7,200.00 - 1,200.00 46,540.00 298.33
6,100.00
5 1,100.00 4,350.00 33,820.00 7,200.00 8,020.00 1,200.00 61,790.00 396.09
11,200.00
6 400.00 4,800.00 42,240.00 10,100.00 1,500.00 2,400.00 72,640.00 465.64
9,400.00
7 600.00 5,550.00 48,940.00 9,600.00 2,300.00 3,200.00 79,590.00 510.19
10,350.00
8 600.00 4,800.00 55,740.00 9,600.00 2,300.00 4,600.00 87,990.00 564.04
11,400.00
9 1,300.00 5,550.00 55,800.00 10,100.00 9,320.00 5,400.00 98,870.00 633.78
11,400.00
10 600.00 4,800.00 55,740.00 9,600.00 2,300.00 7,000.00 91,440.00 586.15
 CRS002 PRACTICES ON CROP PRODUCTION)

ESTIMATED COST AND RETURN FOR A HECTARE OF

DURIAN ORCHARD
Harvestable Gross Income Production Cost Yearly Net
Year ROI
Fruits (Kg) (P)2 (P) Income (P)
1 - 51,955.00 -51,955.00 -1
2 - 16,340.00 -16,340.00 -1
3 - 30,505.00 -30,505.00 -1
4 1,560 46,800.00 46,540.00 260.00 0.56
5 4,680 140,400.00 61,790.00 78,610.00 127.22
6 7,800 234,000.00 72,640.00 161,360.00 222.14
7 12,480 374,400.00 79,590.00 294,810.00 370.41
8 17,160 514,800.00 87,990.00 426,810.00 485.07
9 21,840 655,200.00 98,870.00 556,330.00 562.69
10 26,520 795,600.00 91,440.00 704,160.00 770.08

Fruits farm gate price is at Php30.00/kg.

Formula in getting Return on Investment(ROI)

Net Income
Return on Investment =
Total Capital Requirement
 CRS002 PRACTICES ON CROP PRODUCTION)

REFERENCES

CountrySTAT Phil. 2018. at http://countrystat.bas.gov.ph

Loquias, V.L. et al. 2016. Durian Tree Management for Optimum Production:
Proj. 1. Flower and Fruit Thinning in Durian. Terminal Report.

PCARRD. 2000. The Philippines Recommends for Durian.