CHAPTER I

INTRODUCTION

Chocolate is a usually sweet, brown food preparation of roasted and ground cacao seeds

that is made in the form of a liquid, paste, or in a block, or used as a flavoring ingredient in other

foods. The earliest evidence of use traces to the Olmecs, with evidence of chocolate beverages

dating to 1900 BC.

Chocolate is one of the most popular food types and flavors in the world, and many

foodstuffs involving chocolate exist, particularly desserts, including cakes, pudding, mousse,

chocolate brownies, and chocolate chip cookies. Many candies are filled with or coated with

sweetened chocolate. Chocolate bars, either made of solid chocolate or other ingredients coated

in chocolate, are eaten as snacks. Gifts of chocolate molded into different shapes (such as eggs,

hearts, coins) are traditional on certain Western holidays, including Christmas, Easter,

Valentine's Day, and Hanukkah. Chocolate is also used in cold and hot beverages, such as

chocolate milk and hot chocolate, and in some alcoholic drinks, such as creme de cacao.

In the olden days, cocoa was known to be something bitter but has a healing compound.

Eating chocolates has long been said to improve any sorrow-filled situation. But many research

studies have proven that eating chocolate can be beneficial for most people but certain

compounds in chocolate are capable of asserting a psychoactive effect and can cause damage to

one’s health which can lead to heart and other serious health problems. So people nowadays are

becoming health conscious, thus they tend to seek for healthy foods prepared for convenience.
 A. Project Rationale

B. Background of the study

Chocolates are loved by the most because of its sweet and luscious taste. It contains

flavonoid that acts as an antioxidant that protects the body from free radicals that causes aging

and can cause damage that leads to heart disease. Eating chocolate has long been said to improve

any sorrow-filled situation. But many research studies have proven that eating chocolate can be

beneficial for most people but certain compounds in chocolate are capable of asserting a

psychoactive effect and can cause damage to one’s health which can lead to health problems.

The researcher incorporated vegetables specifically; carrots, squash, radish and sweet potato to

increase the nutrients of the chocolate.

Fruits and vegetables are universally promoted as healthy. The Dietary Guidelines for

Americans 2010 recommend making one-half of your plate fruits and vegetables. Myplate.gov

also supports that one-half the plate should be fruits and vegetables. Fruits and vegetables

include a diverse group of plant foods that vary greatly in content of energy and nutrients.

Additionally, fruits and vegetables supply dietary fiber, and fiber intake is linked to lower

incidence of cardiovascular disease and obesity. Also, supply vitamins and minerals to the diet

and are sources of phytochemicals that function as antioxidants, phytoestrogens, and anti-

inflammatory agents and through other protective mechanisms.

People nowadays are becoming health conscious, thus they tend to seek for healthy foods

prepared for convenience. As a result, Choco Veggies is developed that is enriched with

nutritious content and convenient to fulfill the consumer’s specified requirements and provide
them with utmost satisfaction. The products stated varied with masses measured in grams with

corresponding affordable prices.

C. Objectives of the study

This study generally aims to assess the feasibility of Choco Veggies in selected

municipality/city in Quezon province.

Specifically, it aims to accomplish the following:

1. To assess the market feasibility of choco veggies in local market.

2. To evaluate the technical feasibility in the processing and production of the said products.

3. To plan and forecast realistic financial requirements for the establishment of the

company.

4. To develop marketing strategies for the business to prosper.

5. To develop management structure of the business.

6. To consider the socio-economic feasibility and impact of the business.

II. Market Feasibility

A. Product Description

The Choco Veggies is consisting of chocolate products which is incorporated with

vegetables. As such, carrots, squash, sweet potatoes and radish are the specified vegetables to

increase the nutrient of the chocolate.

1. Name of the Product

 The name of the product Choco Veggies is the combined chocolate vegetables. There are

different varieties of choco veggies such as; chococarrot, chocosquash, chocosweetpotato and

chocoradish.

2. Properties of the Product

According to scientific researches, vegetables and root crops are nutrient densed, Carrot

contains a high amount of carotene which the body converts into vitamin A and it is a good

source of calcium pectate, a pectin fibre that has been found to have cholesterol-lowering

properties, vitamins B and C. According to Dra., Lydia Marero of Food and Nutrition Research

Institute (FNRI) of the Department of Science and Technology (DOST) stated that carrots are

credited with many natural medicine properties; they are said to cleanse the intestines and to be

diuretic, remineralizing, antidiarrheal and overall tonic and antianemic. Carrot is rich in alkaline

elements which purify and revitalize the blood.

Squash is a food which is low in Saturated Fat and Sodium, and very low in Cholesterol.

It is also a good source of Protein, Vitamin A, Thiamin, Niacin, Phosphorus and Copper, and a

very good source of Dietary Fiber, Vitamin C, Vitamin K, Riboflavin, Vitamin B6, Folate,

Magnesium, Potassium and Manganese.

Sweet potato tubers are mainly an energy source due to their high carbohydrate content,

which accounts for 80-90% of the dry weight. These carbohydrates consist of starch, sugars and

small amounts of pectins, hemicelluloses and cellulose (Lebot, 2009). Starch is the main

carbohydrate (about 75% DM) and is very resistant to amylase hydrolysis. Cooking increases the

easily hydrolysable starch fraction of sweet potato from 4% to 55% (Dominguez, 1992). Sugar

content can be extremely variable, usually between 1 and 12% DM, but some USA cultivars

contain as much as 38% DM of sugars. The sugar composition of a cultivar, especially the
sucrose values, gives a reliable indication of its sweetness (Lebot, 2009). The dry matter content

of fresh tubers is about 30% and up to 45% in some varieties (Scott, 1992). Tubers are a poor

protein source, as they contain about 4% DM of crude protein, less than half that of maize grain,

and are poor in lysin and sulphur-containing amino acids (Dominguez, 1992). They have low

contents of fibre (7% DM of NDF), fat and ash. Heat treatments and ensiling are very helpful in

reducing trypsin inhibitor activity (see Potential constraints).

3. Uses of the Product

- Chocolate decreases stroke risk

- Chocolate reduces the likelihood of a heart attack

- Chocolate protects against blood inflammation

- Chocolate may prevent cancer

- Chocolate reduces the risk of diabetes

- Chocolate is good for your skin

- Chocolate strengthens your brain

4. Major Users of the Product

The major users of choco veggies are those target market who live specifically in

Pagbilao, Lucena City, Sariaya, Candelaria and Tiaong, Quezon.

5. Geographic Areas of Dispersion

The choco veggies company will be located at Sariaya, Quezon. Sariaya is a first class

municipality in Quezon known for being one of the Sentrong Pamilihan ng Produktong

Agrikultura ng Quezon Foundation Inc. (SPPAQFI) and also delighted with their breads and
pastries, tikoy and tamales. In this location the products can be found also in nearby towns as

such; Lucena, Pagbilao, Candelaria and Tiaong.

B. Market Opportunity Analysis

1. Demand Analysis

The demand determines the acceptance of a product to its target customers. It is the total

quantity of a good that consumers are willing and able to purchase given certain considerations.

It is important to know the demand of choco veggies in order to answer the customer needs.

Analyzing the demand will give the total number of quantity of choco veggies to be produced.

Table A.1 Demand for the Product

INCOME PERCENTAGE
AGE
BRACKET EATING OF WILLING
TOTAL BRACKET PER CAPITA DEMAND
YEAR 87% (5000- CHOCOLATE TO TRY THE
POPULATION 94.5% (13- CONSUMPTION (in Kg)
35,000 and (82%) PRODUCT
59)
above) (66.75%)
2019 748197 650931.39 615130.16 504406.73 336691.50 0.02 8248.94
2020 784998 682948.26 645386.11 529216.61 353252.08 0.02 8654.68
2021 821798 714964.26 675641.23 554025.81 369812.22 0.02 9060.40
2022 858599 746981.13 705897.17 578835.68 386372.81 0.02 9466.13
2023 895699 779258.13 736398.93 603847.12 403067.96 0.02 9875.16

TableA.1. illustrates the demand for the products in the year 2019 up to 2023 it is based

on the computation of projection demand and the result of survey. The projection of demand is

important for the business to estimate and anticipate future production demands and possible

expansion of capacity in the near future of the business.

 2. Market Segmentation Analysis

POPULATION

Pagbilao Lucena Sariaya Candelaria Tiaong

13-18 yrs old 18 63 35 28 24 167
19-59 yrs old 22 79 44 35 30 211
Edad
60 yrs and above 2 8 5 4 3 22
TOTAL 42 150 84 67 57 400
Babae 26 93 52 42 35 248
Kasarian Lalaki 16 57 32 25 22 152
TOTAL 42 150 84 67 57 400
500-1000 1 5 3 2 2 12
1001-2000 3 10 6 5 4 27
Allowance
2001-3000 5 16 9 7 6 43
(Student)
3000-above 11 39 22 18 15 105
TOTAL 20 70 39 31 27 187
below 5000 3 11 6 5 4 29
5001-15000 6 21 12 10 8 57
Sweldo 15001-25000 11 38 21 17 15 102
(Employee) 25001-35000 3 9 5 4 4 25
35001-above 0 0 0 0 0 0
TOTAL 23 79 45 36 30 213

Oo 34 123 69 55 47 328
Kumakain kaba
Hindi 8 27 15 12 10 72
ng tsokolate?
TOTAL 42 150 84 67 57 400
Willing kaba 27 100 56 45 39
Willing to try 267
na magtry ng
Choco Not willing 14 50 28 22 19 133
Veggies? TOTAL 41 150 84 67 58 400
 Araw-araw 3 9 5 4 3 24
Gaano ka Once a week 7 26 14 11 10 68
kadalas kakain 2 times a week 12 41 23 18 16 110
ng choco Once a month 4 14 8 6 5 36
veggies? 2 times a month 3 11 6 5 4 29
TOTAL 28 101 56 44 38 267
10 grams 6 21 12 9 8 56
Gaano kadami 20 grams 10 36 20 16 14 96
ang iyong 30 grams 8 27 15 12 10 72
willing 40 grams 3 9 5 4 3 24
makonsumo? 50 grams above 2 7 4 3 3 19
TOTAL 29 100 56 44 38 267
Semisweet 7 25 14 12 10 68
Sa anong Bittersweet 8 27 16 12 11 74
flavor mo ito Milk 7 24 13 11 9 64
nais? White 6 23 13 10 9 60
TOTAL 28 99 57 44 39 267
Plain 10 35 20 15 12 92
Sa anong anyo
Coat sa wafer 10 34 19 15 13 91
mo ito nais
Mani 8 32 18 14 12 84
makain?
TOTAL 28 101 57 44 37 267

below 20 13 46 26 21 18 124
Sa magkanong PHP 21-30 8 27 15 12 10 72
halaga mo ito PHP 31-40 5 18 10 8 7 48
nais na mabili? PHP 41-50 2 9 5 4 3 23
TOTAL 28 100 56 45 38 267
Sari - sari Store 8 28 16 13 11 76
Saang Canteen ng school 5 18 10 8 7 48
pamilihan mo Canteen ng company 2 8 5 4 3 22
ito nais na Mall 6 22 12 9 8 57
makita? Public Market 7 24 13 11 9 64
TOTAL 28 100 56 45 38 268

3. Industry Analysis

In Quezon Province, there is no existing Chocolate Manufacturing Company that is

operating, there is only one store in Lucena who is selling different kinds of chocolates but they

are not the one who manufactured the product.

 4. Competitors (Supply) Analysis

Past Supply

Table 4.1 Historical Supply of Chocolate

YEAR SUPPLY (MILLION KG)

2014 6.71
2015 7.02
2016 7.35
2017 7.7
2018 8.04
Source: Industry.Gov.Ph

Table 4.1 shows the historical supply of chocolates import and export from 2014 up to

the succeeding years, until 2018.

Projected Supply

Table 4.2 Projected Supply of Chocolate

YEAR a Y1+i Yc µ Yc-µ (Yc-µ)^2

2018 8.04
2019 0.3325 8.04 8.4 45.1875 -36.815 1355.34
2020 0.3325 8.3725 8.7 45.1875 -36.483 1330.97
2021 0.3325 8.705 9.0 45.1875 -36.15 1306.82
2022 0.3325 9.0375 9.4 45.1875 -35.818 1282.89
2023 0.3325 9.37 9.7 45.1875 -35.485 1259.19
TOTAL 45.1875 6535.22
σ 36.15
Based on computations of Supply Projection

Table 4.2 shows the projected supply of chocolates from 2019 up to 2023 based on

computations of Supply Projection.

 5. Chanel Analysis

C. Target Market Selection

The target market of choco veggies are the towns of Pagbilao, Lucena City, Sariaya,

Candelaria and Tiaong, Quezon for which it has a 66.75% of willing to try the product based on

survey.

D. Market Share Determination

E. Marketing Strategy

1. Marketing Program

Marketing Program is very important aspect in every company. It is the total system of

the company to plan, pricing promoting and distributes wants-satisfying products and services to

present and potential customers. Marketing must be creative to attract the buyers of different age

groups and must be flexible in adjusting to the environment and changes in the needs of the

customers.

2. Pricing Scheme

Aside from production cost, prices prevailing in the market for related products are also

considered to arrive at the price of Choco Veggies products. Based from the survey conducted,

the researcher decided to use the price conveyed from it. The price of the product will be sold at

Php 30.00 per pack of 240 grams.

 3. Promotion and Advertising Strategies

3.1 Product Strategies

The product was named after its main ingredient which is chocolate incorporated with

vegetables. With the twist of chocolate containing veggies it could catch the attention of our

target market and ask “what would that product taste like?” This would make the curiosity of the

consumers want to try the choco veggies that can have a big impact in the product to the buying

society especially chocolate is considered the most craved food in the world.

3.2 Place Strategies

The plant will be located at Sariaya, Quezon. Since this municipality has become the

“bagsakan” of vegetable products from Quezon and neighboring places and from as far as the

Bicol Region. It will be convenient because of the availability of supply and also considered

because some of the demand of the business will be gained in this location. The plant will also

have a retail store for the local consumers in Sariaya, Quezon. For the distribution strategy,

wholesalers and distributor will help the business to reach the market. They will be given a lower

price than the retail price. Delivery capability will also be used to meet the demand of the

grocery stores near on its target municipalities that will supply its own locals.

3.3 Pricing Strategies

Aside from production cost, prices prevailing in the market for related products are also

considered to arrive at the price of Choco Veggies products. Based from the survey conducted,

the researcher decided to use the price conveyed from it. The price of the product will be sold at

PHP 30.00 per pack of 240 grams.

 3.4 Promotion Strategies

Promotions are a type of method for the product to sell its brand and for the customers to

become aware of the new the products. The business will use different mode of advertisement to

promote the product.

3.4.1 Poster

Posters will be posted to the municipalities and cities near the plant also to its

local place. It will help customers to be aware of the products made by Choco Veggies

Company. It could help the demand to rise.

3.4.2 Flyers

Flyers are somewhat similar to the posters the difference is that it focuses on the end

consumers. Flyers will help the business to have face to face interaction with their customers. It

will show how dedicate the business really is toward the selling of their product.

3.4.3 Website

Social Media is one of the popular modes of advertisement nowadays. The

business will use facebook, instagram and youtube to spread the awareness of the products.

Furthermore, Choco Veggies will also create its own website so that customers can see the

company background and products offered. This could also permit fast response to customer

inquiries regarding sales and suggestions and recommendations.

4. Market Distribution Strategies

The plant will be located at Sariaya, Quezon. Since this municipality has become the

“bagsakan” of vegetable products from Quezon and neighboring places and from as far as the
Bicol Region. It will be convenient because of the availability of supply and also considered

because some of the demand of the business will be gained in this location. The plant will also

have a retail store for the local consumers in Sariaya, Quezon. For the distribution strategy,

wholesalers and distributor will help the business to reach the market. They will be given a lower

price than the retail price. Delivery capability will also be used to meet the demand of the

grocery stores near on its target municipalities that will supply its own locals.

III. Technical Feasibility

A. Manufacturing Process

Process is a vital factor in every development where lot of things should be reflected

from the objectives created form planning. From start to finish, process should be determined so

that the desired goal would be realized. In business, it is composed of two processes, the pre

operating period and the operating or production period. Pre-operations are the processes to

conduct before the actual start of the business endeavor. These includes the accumulation of

land, building of the facility, ordering of machineries, equipment, furniture and fixtures,

accumulation of materials and labor and others related to the processes before the proper

operations. Meanwhile, the operating or production period is the phase wherein the business is

starting to produce the product and finally introduce it to the market. Specifically, it pertains to

operations in which raw materials undergo until it is formed into its desired final product. In this

study, the process to be analyzed relates with the products which is choco veggies.
 Figure A.1 Flow Process of Pre-Operating Period

The figure above shows the pre-operating period process which will start from securing

the suited location, secure and work on business permits and licenses from different agencies

concerned for the building of the business. After all the papers required are settled, building of

the facility can be started through bidding and the winning bid of the contractor will be the one to

construct the facility for the business. Then, necessary machines, equipment, furniture and

fixtures and other related goods will be acquired with the winning bid of the suppliers. Finally,

the laborers and workers will then be hired and that is the perfect time to start the business’

operations.
 Figure A.1.1 Flow Process of Operating Period

The figure above shows the operating period process which will begin with the

production planning and scheduling with vast concern with the capacity of the plant to produce.

The quantity to produce will be given to the production department to execute the plan. Then,

sales and marketing department will be the one responsible on the inflows and outflows of

money in the entire business. Additionally, customer services and reviews will be entertained in

order to fully understand and conform to the customer’s specifications.

A.2 Production Processes

The process of manufacturing choco veggies will start by preparing the required raw

materials that will be used in the production. Once prepared, the vegetable will proceed to the

slicing machine to be cut into desired shape. After slicing operation, the vegetables will proceed

to the extractor; it squeezes the juice out of the pulp. Right after, the other ingredients will be

placed in a mixer and blend together. Once the mixture is complete, it moves onto the next
process which is the mixture is squished through rollers. It is then removed from the last rollers

where it has been thinned to less than 0.03 millimeters. Plastic molds for making chocolate bars

are prepared. Then, the melted chocolate is poured into the molds then sent to a refrigeration

room. It is cooled and solidified for 20-40 minutes at 8 degree celcius. Lastly, the solidified

chocolate bars are removed from the molds and is ready for labeling and packaging then stored

in the warehouse.

Raw Materials
Preparation

Cutting

Steaming

Extracting

Mixing

Pouring

Cooling

Labeling/
Packaging

Storage

A.2 Operation Process of Manufacturing Choco Veggies

B. Plant Size and Production Schedule

C. Machinery and Equipment

The tables below show the machineries and equipment that will be used by choco veggies

production. The given quantity and price were used as the assumptions to know the capital cost

of the machinery and equipment.

 NAME FUNCTIONS PRICE QUANTITY TOTAL COST
Cutting Machine
Specially designed to cut fruits &
vegetables in desired shape &
size with slicing attachment of
cubing, Shredding and finger in PHP.352,500.00 2 PHP.705,000.00
one single machine with conveyor
system complete with motor and
made of stainless steel.

Mixing Machine
Is a machine which uses a gear-
driven mechanism to rotate a
set of beaters containing the
food to be prepared. It PHP.465,885.00 4 PHP.1,863,540.00
automates the repetitive
tasks of stirring, whisking or
beating.

Three Roll Mill

is a machine that uses shear
force created by three
horizontally positioned rolls
rotating in opposite directions
PHP.46,000.00 4 PHP.184,000.00
and different speeds relative to
each other, in order to mix, refine,
disperse, or homogenize viscous
materials fed into it.

Cooling Machine

Used for cooling one shot

PHP.153,500.00 3 PHP.460,500.00
products or chocolate blocs

Flat Belt Conveyor

Transport material with

PHP.175,000.00 10 PHP.1,750,000.00
minimal effort.
Forklift

Used to carry heavy loads in

PHP.720,000.00 2 PHP.1,440,000.00
the production

Pallet Jack

Used in transporting pallet of

loads from one destination to PHP.10,000.00 2 PHP.20,000.00
another.

Pallet

It serves as a structural
foundation of a unit load
which allows the handling and PHP.880.00 20 PHP.17,600.00
storage of material to be
more efficient.

Hand Cart
Used for transporting small
loads of materials which it can
carry 275 lbs or 125 kg up to
PHP2,300.00 2 PHP.4,600.00
600 lbs or 272 kg depending
on the size and capacity of the
cart

Table C.1 Machinery and Equipment

D. Plant Location

The place where the business will be located is an important factor to consider. The main

office should be easily found where the concerns of the production plant, warehouse and store

outlets can reach out simply.

 Vicinity Map

The Main office will be located at Brgy. Tumbaga I, Sariaya, Quezon. Sariaya is a first

class municipality in Quezon known for being one of the Sentrong Pamilihan ng Produktong

Agrikultura ng Quezon Foundation Inc. (SPPAQFI) and also delighted with their breads and

pastries, tikoy and tamales. The main office and warehouse can be found inside the production

plant where the products are being manufactured so that the movement of products can be

synchronized with the function of the main office, production facility and warehouse. Thus,

smooth delivery of products can be obtained in the near store outlet. The overall lot size is

80mx50m that is sufficient to provide space for all departments included in the layout.

Figure D.1 Proposed Plant Location

The figure above shows the proposed location for the plant facility. The plant are located

to place where the manner of producing goods is appropriate and permitted. The covered land

area for the plant is 85x55 m and the floor area is 80x50m.
E. Plant Layout

Figure E.1 Proposed Plant Layout for the Building

LEGEND:
1 GUARD HOUSE AND PARKING AREA FOR DELIVERY TRUCKS
2 WAITING LOBBY
3,4,5 CANTEEN AREA
6 LOCKER ROOMS
7 PARKING AREA FOR EMPLOYEE
8 CUTTING AREA
9 REFRIGERATION ROOM
10 PACKAGING AREA
11 MIXING AREA
12 LINE 1
13 LINE 2
14 LINE 3
15 LINE 4
16 ROLLING MACHINE
17 PRODUCTION OFFICE
18 MAINTENANCE OFFICE
19 MANUFACTURING AND ENGINEERING DEPARTMENT
20 GENERAL ADMINISTRATIVE DEPARTMENT
21 WAREHOUSE AREA
22 DELIVERY BAY

LINE 1 CHOCOLATE CARROT

LINE 2 CHOCOLATE SQUASH
LINE 3 CHOCOLATE SWEET POTATOES
LINE 4 CHOCOLATE RADISH

The figure above shows the plant layout for the building consisting of different

departments, storage, warehouse, parking areas and the production area. The production area is

composed of four production lines which are intended for producing products such as chocolate

carrot, chocolate squash, chocolate sweet potato and chocolate radish.

F. Building and Facilities

G. Raw materials and Supplies

 Table G.1 List of Raw Materials used in Choco Veggies Production

Product Raw Materials Specification Suppliers Location Mode of Procurement

Brigthly colored, firm
Carrots SPPAQFI Sariaya, Quezon Shopping
and cylindrical shape
Squash Cucurbita maxima SPPAQFI Sariaya, Quezon Shopping
Sweet Potatoes Color purple SPPAQFI Sariaya, Quezon Shopping
Smooth, Firm and
Radish SPPAQFI Sariaya, Quezon Shopping
free from decay
Choco Veggies
Dairy Products Pulvorized Abby Villadiego Sariaya, Quezon Negotiation
Sugar White MSCS Primegood Inc. Mandaluyong, City Negotiation
Cattleya & Rose
Cocoa mass Metro Manila Negotiation
Pellet type Goumet Foods Trading
Cattleya & Rose
Cocoa powder Pulvorized Metro Manila Negotiation
Goumet Foods Trading

The table above shows the raw materials necessary to manufacture the choco veggies

products given its specifications, corresponding suppliers and their locations and how these

materials will be procured. The vegetables are procured shopping since it will be bought from

SPPAQFI where over 100 tons of veggies are delivered every day. Meanwhile, the rest of the

products will be procured in negotiation form since there is a direct supplier for the particular

raw materials.

Supplies

Supplies are consumables and used regularly in businesses and other organizations so that

workers can do their respective assignments. It is used by the individuals engaged in mass

production, written communications, record and book keeping, janitorial and cleaning, and data

storage.
 Office Supplies

Office supplies are supplies used such as record book, bond paper, ball pen, markers and

other needs that are used in office works of the employee.

Table G.2 Office Supplies

OFFICE SUPPLIES
Office Supplies Quantity Unit Amount (Php) Total Amount (Php)
Log Book 3 Pcs 76.50 229.50
Record Book 3 Pcs 85.76 257.28
Ball Pen 3 Box 48.00 144.00
Marker 5 Pcs 48.00 240.00
Bond Paper 6 Reams 150.00 900.00
Stapler 2 Pcs 85.00 170.00
Staple wire 10 Boxes 16.00 160.00
Fastener 2 Box 59.75 119.50
Puncher 2 Pcs 105.00 210.00
Paper clip set 5 Box 70.00 350.00
Calculator 3 Pcs 120.00 360.00
Glue 3 Pcs 90.00 270.00
Marker Ink Refill 2 Box 333.00 666.00
Printer Ink Refill 4 Set 75.00 300.00
White Board Eraser 2 Pcs 110.50 221.00
Scotch Tape 5 Pcs 11.20 56.00
Scissors 3 Pcs 22.50 67.50
Folder 20 Pcs 3.40 68.00
TOTAL Php.4,788.78

*Calculations are made for the starting operation cost of the supplies

The table above is the list and the cost of the office supplies to be used by the business.

The cost of the office supplies that are estimated for the start of operation has a total of PHP

4,788.78. Meanwhile, the cost for the succeeding year may appear lower since some of the

materials can be used for the following operating years.

 Cleaning and Sanitary Supplies

Sanitary supplies are the supplies considered for the cleanliness of the employees, since

the business that will be established is a food processing plant. These include some of the basic

sanitary necessities such as alcohol, sanitary and tissues.

Table G.3 Cleaning and Sanitary Supplies

CLEANING AND SANITARY SUPPLIES

Amount Total Amount
Sanitary Supplies Quantity Units
(Php/Piece) (Php/Piece)
Alcohol 10 pcs 50 500.00
Hand Soap 10 pcs 190 1900.00
Tissue 10 packs 140 1400.00
TOTAL PHP 3,800.00
*Calculations are made for the starting operation cost of the supplies

The table above shows the list and the cost of the cleaning and sanitary supplies to be

used by the business. The cost of the cleaning and sanitary supplies that are estimated for the

start of the operation has a total of PHP 3,800.00. Meanwhile, the cost for the succeeding year

may appear lower since some of the materials can be used for the following operating years.

H. Utilities

H.1 Electricity

The provider of the electricity that will be used in the business is MERALCO.

MERALCO is the only electricity provider available in the proposed location. The average rate

provided by the MERALCO is PHP 13.00/kw-hr. The electricity will be used for the machines
and other electrical devices. The electrical consumption of the machines is the summation of all

the power rating provided by the manufacturer.

H.2 Water

Water supply will come from a private business near the proposed location of the plant.

The current price of the water is PHP 16.70 per cubic meter; this is basis of the computation for

the monthly and annual usage of water utilities.

H.3 Telecommunication

The telecommunications include the internet and land line calls which can be used for

business communication outside the plant. It is necessary for the plant to have internet access to

provide easy way of communication inside and outside the plant. The Telecommunication

Company that will provide these is Philippine Long Distance Telephone (PLDT) with Plan 4299.

H.4 Gas, Fuel & Oils

Diesel will be used by the vehicles for the transportation of raw materials and the final

goods. The provider of the diesel fuel is Shell; the current price of their diesel is PHP

47.65/liter. The delivery truck will deliver the final goods to Candelaria, Sariaya, Tiaong,

Pagbilao and Lucena.

 Table H.1 Utilities Requirements

UTILITIES
Monthly
Utilities Requirements Supplier Annual Cost (PHP)
Consumption
Electricity MERALCO 201,361.00 2,416,332.00
Water Supply Private owned business 8,549.00 102,588.00
Telecommunications PLDT 4,299.00 51,588.00
Diesel Shell 14,295.00 171,540.00
TOTAL PHP.2,742,048.00

The table above shows the list of utilities required in the operating period of the business.

Corresponding supplier for each utility is presented in the table with monthly consumption and

annual cost in peso.

I. Waste Disposal

The business will have a proper waste disposal method as it is required when establishing

a business. The company will provide a specific location for the trash bags that will be for

biodegradable, non-biodegradable and recyclable waste and will be put in designated areas

around the plant. It will be located in the main entrance of the business, at the canteen, and toilet

rooms. Break room. It will also be located in the production Biodegradable trash can is for all the

wastes that are easily decompose or effectively break down and normally rot. Non-biodegradable

trash can is for all the wastes that are cannot easily decompose and recyclable is for things that

can be recycled or used again. The waste disposal method intends to segregate waste for a more

prudent and benevolent nature.

The business will also comply with the Waste Water Treatment for the production. It will

remove contaminants from wastewater or sewage and convert it into an effluent that can be

returned to the water cycle with minimum impact on the environment, or directly reused.
 Because wastewater treatment is a highly complex, custom solution, several factors go

into choosing the right treatment options. It is crucial to treat your waste properly, as discharging

wastewater into the environment or a publicly owned treatment works (POTW) without meeting

local regulations can cost you thousands of dollars in fines down the road.

In waste water treatment system, it includes:

 An oil/water separator or dissolved air flotation device to remove small amounts of oils.

 A series of reactors and chemical additions to adjust the pH and precipitate out metals

from the solution.

 A clarifier to settle suspended solids that are present as a result of treatment.

 Some sort of filtration to remove all the leftover trace amounts of suspended solids

(again, the level of filtration needed will depend on the degree of suspended solids

removal required to pass local discharge regulations).

  And, contingent upon the level of automated operation needed, a control panel of sorts.

J. Labor Requirements

Store uniforms are the ones being used in the facility and the personal protective

equipment (PPE) is being used by the employees for the safe and comfortable working condition.

Figure J.1 Store Uniforms

Table J.1 Uniforms Expenses

UNIFORMS
Supplies Quantity Unit Amount (PHP/set) Total Amount (PHP)

Lab Gown 30 pcs 200 6,000.00

Boots 30 pairs 300 9,000.00
Hand Gloves 30 pairs (100 pcs) 220 6,600.00
Face mask 30 box (50 pcs) 150 4,500.00
Shirt 30 pcs 200 6,000.00
Hairnet 30 box (100 pcs) 280 8,400.00
TOTAL PHP 40,500.00
*Calculations are made for the starting operation cost of the supplies
 The table above shows the uniform expenses. This includes the over-all uniform of each

worker inside the plant which has a total of PHP 40,500.00. Meanwhile, the cost for the

succeeding year may appear lower since some of the uniforms can be used for the following

operating years particularly the safety shoes.

K. Production Cost
FEASIBILITY STUDY OF CHOCO VEGGIES COMPANY IN SARIAYA, QUEZON

Christine Maniliz P. Gomez

BSIE – V GK

Southern Luzon State University

November 2019