1 'Project 100,000'
Take a tree that can produce a profitable raw material, its leaves,
within six months after germination and can sustainably produce five harvests
per year for the next fifty years, plant it along with 99,999 more on 10
hectares of locally negotiated farmland, pay the local farmers for their loss
of income that they would have earned if growing rice, pay local community
residents to provide the necessary labor, harvest the leaves, produce the
product, sell the product, share the income after costs and see how many
neighboring communities want to do the same. One hundred thousand new trees in each of 42,000 barangays equal more trees planted and growing than any other project ... 4,200,000,000.
Figure 1. The painted strips over the
photograph depict what would be strips of planted Moringa oleifera trees. Each strip is 50 meters wide and on this
overlay their length totals more than 2,000 meters. Two strips are separated by the irrigation
ditch. If we extend two strips for 1,000
meters that represents 10 hectares of land.
It often is the least desirable rice land to the local farmer and therefore
negotiating its rental is very feasible.
All-in-all about 20 farmers are to involve their respective piece of
land in Project 100,000 which gets its name by the sheer number of trees
planted on the ten hectares or 10,000 per hectare times 10 hectares.
2 Some Specifics and Costs – Project
100,000 (“P100K”)
Tanyag is one of seven barangays (villages) that comprise the
municipality of Calintaan in the Region of MIMAROPA (IV-B), Province of
Occidental Mindoro. Calintaan’s
population is more than 30,000 and its land area is 382.50 km² or 38,250
hectares with a density of 7,800 hectares.
About 30,450 hectares of farmland, mostly rice. Tanyag has about 900 families mostly living
within the barangay proper. Each family
averages five and that amounts to a population of about 4,500. The cultivated rice land exceeds 2,000
hectares. ‘Project 100,000’ utilizes ½
of one percent of the cultivated land within Barangay Tanyag.
2.1 The Cost to Rent 10 Hectares of Riceland
– P100K
The average net income to the rice farmers is Php 2.7m² per season
and there are two seasons per year in Tanyag so Php 5.4m². Ten hectares of land is 100,000m² or Php
540,000 ($12,000) per year.
2.2 The Cost of Land Preparation – P100K
The trees require the same kind of soil as is needed for rice,
however, it must stand above the rice area so that the soil drains. The trees do well in dry weather and excel
when irrigation channels water through the root systems without backing up and
becoming standing water. Periods of
drought are actually welcome.
Preparation of the planting rows is a simple matter of using a tractor
with a rototiller that is operated by a competent and experienced
operator. Three days of operation at a
daily machine cost of Php 1,000 and a daily operator cost of Php 350 for a
total of Php 4,050 (US$ 90.00).
2.3 The Cost of Irrigation – P100K
The existing irrigation system is made accessible simultaneously
with the land preparation process. The
monthly access fee paid to the barangay is Php200 or Php 2,400 per hectare per
year for a total of Php 24,000 (US$533.33).
2.4 The Cost of Propagation – P100K
The cost of Seeds (Php 8,100), soil (Php 10,000), water (Php 4,000)
and labor (Php 13,500) for 110,000 (10,000 mortality) quantity total Php 35,600
(US$ 791).
2.5 The Cost of Bagging the Seedlings – P100K
Banana fiber from the ‘trunk’ are utilized to make the bags for the
seedlings when removed from the seed bed.
The bags are of course biodegradable containing magnesium and iron which
is used by the seedling as its young roots push through the bottom of the bag
within a couple weeks following planting.
The Demo Farm has a sufficient supply of banana trees for this
purpose. (Note: Banana trees need to be cut after they fruit
and this process makes way for the new buds that replace the cut tree.) Each banana tree trunk has enough layers to
supply 200 bags. The labor cost
associated with this exercise is Php 13,500 (US$ 300)
2.6 The Cost of Planting – P100K
The cost is broken down into three segments of 33,333 per year for 3
years. Per segment: Five laborers (Php 180 x 5 per day for 26
days = Php 23,400) and one supervisor (Php 350 x 26 days = 9,100) totals Php
32,500 (US$ 722). The entire 100,000
involves three years and 10,000 replacements to cover mortality, thereby the
project total is Php 97,500 + 10% = Php 107,250 (US$ 2,383).
2.7 The Cost Maintenance – P100K
Land care, mulching, organic fertilizer preparation, application,
problem identification and solving for 33,000 growing seedlings in their first
year requires the attention to detail of five labor and one supervisor for a
period of seven months. This cost is
repeated for year-two and year-three.
Thereafter the same team can handle the entire 100,000 since per unit
maintenance of the older growing trees is reduced considerably. The labor cost is Php 23,400 per month for
seven months or Php 163,800 per year for three years is Php 491,400 (US$
10,920). The cost of mulching, organic fertilizer
and biochar preparation is one peso per tree per year or year-one Php 33,333,
year-two Php 66,667 and year-three Php 100,000 or a total of Php 200,000 (US$
4,444). The total for three years is Php
691,380 (US$ 15,364).
2.8 The Cost of Security – P100K
On-site security via live-in caretaker (ordinary and
customary). Kubo (living shelter), Php
10,000. Utilities and food per day is
Php 250 times 365 days = Php 91,250 for three years is Php 273,750 (US$ 6,083).
One hundred thousand producing trees all harvested once per month
require labor to pick the equivalent of 25 grams of wet matter (leaves) from
each of 3,333 trees per day in Y-1 and increasing accordingly in successive
years, 2 and 3.
3.1 The Cost of Harvesting
In Year-1 Team 1, five labor at 180 per day and one supervisor at
350 per day for 30 days times seven months are needed or Php 262,500. Year-2, Team 2 is added or Php 525,000 and in
Year-3, Team 3 is added for a total of Php787,500. The harvested wet matter is walked to the
stand-by t trailer pulled by the farm tractor (Php 300,000) for a total of Php 1,087,500 (US$ 24,166).
The processing requires washing, drying, separating leaves from
stems, quality assurance, pulverizing into powder, bulk packaging and the
initial inventory storage or holding area. The wet matter is converted into
bulk packages of 5kg each and placed into inventory.
4.1 The Cost of Processing - Step 1.
The wet matter arrives at the facility where it is off loaded and
placed on an automated washing line to remove all dirt and other possible
contaminates, equipment cost is Php 200,000. Water cost is mostly associated
with pumps and pumping amortized over three year period, Php 290,000 (US$
6,444).
4.2 The Cost of Processing - Step 2.
The drying involves the leaves being placed onto stainless steel
screens that slide into a holder that has slots enough to hold 20 screens. The screen holder is one square meter in
surface area, as are each of the screens.
The holder is on wheels so that it can be moved and guided into the
drying room and placed next to other holders already full of wet matter
leaves. The drying process is
proprietary technology, however the quantify computation is not: 50 grams wet matter per screen for the
morning harvest requires 834 screens requires 41 holders or Php 540,000. The drying room is 6.5 meters by 6.5 meters
with proprietary drying technology at a unit cost of Php 450,000. In Y-1 the cost is Php 990,000 plus Y-2 and
Y-3 or Php 2,970,000 (US$ 66,000).
4.3 The Cost of Processing - Step 3.
Pulverizing equipment consists of three units. The cost of each is Php 210,000. All three units total Php 630,000. The commercial bag sealer is Php
100,000. The cost of the bags for three
years is Php 108,000 and the combined cost is Php 838,000 (US$ 18,622).
4.3.1 Production Offset
Production
in Y-1 is 833,325 grams per day of wet matter or 174,998,250 grams in 210 days
which is 174,998kg and the pulverized dry leaves are 17,500kg in Y-1; 35,000kg
in Y-2 and 52,500kg in Y-3; requiring 1,500 5kg, 3,000 and 4,500 respectively Zip
Lock heat sealable and metalized bags at a cost of Php 18,000 in Y-1, Php 36,000
in Y-2 and in Y-3 Php 54,000 for a total of Php 108,000 (US$ 2,400). The total three-year production
income is 105,000 kg @ Php 1,200 per kg = Php 126,000,000. The total three-year production income is
105,000 kg @ Php 1,200 per kg = Php 126,000,000 (US$ 2,800,000). Intercropped turmeric 33% of Moringa
production, Y-3 Php 42,000,000 + Php 126,000,000 = Php 168,000,000 (US$
3,733,333).
4.4 The Cost of Processing - Labor
Labor is above entry level.
Three technicians at 250 per day and one supervisor at 350 per day for
365 210 days or Php 231,000 (US$ 5,133).
4.5 Facility - Processing
The processing portion of the overall facility is housed in the
basement floor of the five story Institute.
The building is constructed on a hillside and therefore the basement
level actually opens at the far eastern end onto what would seem to be ground
level, which is the receiving and delivery dock. The number of square meters of interior,
first class sanitized and climate controlled area is 45m² for receiving wet
matter and washing, 126m² for drying, 45m² for pulverizing and 45m² for inventory
holding. The total square meters is 261m². The cost is Php 11,934 per square meter or Php
3,114,774 (US$ 69,217).
The department for Marketing, Sales and Shipping consists of seven
fully equipped and trained personnel with the assistance of an outside
e-commerce consultant.
5.1 The Cost of Personnel, MSS - Equipment and Consulting/Training
One manager (Php 600/day * 288 days = P172,800), one market
specialist (Php 500/day * 288 days = Php 144,000), two sales representatives
(Php 400/day * 288 days = Php 115,200), one shipping supervisor (Php 500/day *
288 days = Php 144,000) and two assistants (Php 350/day * 288 days *2 = Php
201,600). Equipment: four business laptops with Netware, Internet,
Wi-Fi (Php 240,000). E-commerce
consultant (Php 40,000/mo. * 12mos. + 1mo. Training = Php 520,000); Php 1,537,600
(US$ 34,168).
5.2 The Cost of Electronic Commerce, MSS - Applications
Application services for filing, file management, storage, storage
retrieval, security and customer service Php 200,000 per year, 3 years Php
600,000 (US$ 13,333)
5.3 The Cost of Customer Services, MSS - Repeat customers
Repeat customers will be encouraged to join auto-ship programs and
will receive bonus gifts of new products to try, such as turmeric and others as
they come on line. The demo-farm is
growing nearly 30 nutritious and complementary leaf and root flora. One percent of Hilltop Moringa earnings is
devoted to retention of its customers through bonus programs or about Php
1,260,000 (US$ 28,000).
5.4 The Cost of Advertising, MSS
AdSense and similar social network advertising systems are employed
with an annual budget of Php 240,000 * 3 years = Php 720,000 (US$ 16,000).
5.5 The Cost of Sales staff, MSS
The sales staff is incentivized with a 5% first time sales
commission and a 2% auto-ship, auto-pay plan bonus which can become
substantial. Certain performance
standards apply for continued qualification or about a cost of 1% of total
earnings, Php 1,260,000 (US$28,000).
5.6 The Cost of Auto-pay plan, MSS
The support application for this system will be provided through
outside consulting. The system will
increase repeat sales and minimize per capita cost for maintaining repeat
customers. The outside consulting budget
is a one-time expense of Php 100,000 and a maintenance fee of Php 10,000 per
month or Php 120,000 per year with a three-year cost of Php 360,000 (US$
8,000).
5.7 The Cost of Shipping Team, MSS
Actual shipping and handling is generally covered by the consumer
who pays this under separate charges, a routine practice in retail sales. However, the Warranty Program assures
customer satisfaction and is an actual cost.
The presentation of products delivered is essential to guaranteeing
satisfied customers. The product and its
quality are excellent but without following excellent shipping schedules and
having the items delivered in properly representative packaging can dampen and
even loose otherwise satisfied customers.
To that end training and incentives are provided to the shipping team. One percent of sales is budgeted for this
purpose or Php 1,260,00 (US$ 28,000).
The demonstration farm rests on 8.2 hectares that are located on top
of a hill that rests about 150 feet above the surrounding rice land. It is technically classified by the
government as forest, however, the sparse secondary forest offers some
indigenous species of trees, some of which are medicinal, but also offers
excellent soil for the growth of more than 30 species of fruit, nut, sap and
medicinal flora; mostly trees.
6.1 The Cost of the Institute - DF
The paradigm of agribusiness that began around 1948 and has grown to
what is now the largest industry in the world is actually counterproductive to
achieving good health while feeding billions of people each day. Agroforestry, its attributes, benefits and
comparative ease of sustainable operations must be advertised, presented and
the idea sold to those anxious and frustrated farmers waiting to adopt the new
systems or paradigm. Nurturing of those
desirous must follow and be persistent until the new paradigm can stand alone
at 7 percent of the farmers. If the base
is 10,000,000 farmers then seven percent is 700,000 farmers. That number is perhaps overwhelming so in
order to achieve the seven percent we look at the number of barangays which is
about 42,000 and seven percent is 2,940.
We are to reach out to each barangay expecting to attract only seven
percent or 2,940 representatives to become students at the institute. Recruitment is mainly the effort of public
relations, word of mouth and follow-up.
The personnel costs to achieve this are enumerated elsewhere in this
plan, however the information media, printed material and correspondence cost
is Php 100,000 per year x 3 years = Php 300,000 (US$ 6,667).
6.2
The Cost of the Course of Study - DF
The purpose of
demonstration farm is to provide the student with hands-on experience,
state-of-the-art science that deviates from agribusiness and supports
biodiversity, sustainability, organic uses and production, cost savings,
achievement of nutritional highs, achievement of high mineral content, fiber
content, plant protein and other attributes of agroforestry. The cost for presenting the course of study
will be Php 450,000 for each of three instructors, their travel, lodging, food,
training materials and on-site instruction.
The total cost is Php 1,350,000 (US$ 30,000).
Expert instructors from around the world will be guest lecturers, presenters and hands-on demonstration. The course of study will consist of ten areas and the period of instruction will be over a seven day period with students residing at the institute.
6.3 The Cost of Providing the Instructors and their Course of
Instruction - DF
Each class will have twenty students and there will be two classes
in training on a staggered basis. Each
instructor is to present to each class separately. During the course of the week 40 students. In order to achieve the seven percent of
2,940 barangays (assuming 100% success) 74 classes are required or over the
three-year period 25 per year or a little more than two classes per month. At Php 1,350,000 per course times 25 per year
is Php 33,750,000 and over three years the 74 classes cost is Php 101,250,000
(US$ 2,250,000).
6.4 The Cost of the Logistics of Housing for Students - DF
Within the hotel is situated the air-conditioned dormitory that has
50 single rooms (2.5m x 3m or 7.5m²) configured with a single bed, wardrobe,
study table and CR (including hallways the area is 500m². Wireless Wi-Fi is available throughout. The
lounge, presentation area and two first class rooms for visiting instructors
are located elsewhere on the same floor for a total of 1,000m². The
common area includes hallways of 2.5m² per room or 125 m². The complete cost per m² is Php 11,934 x 1,000
m² = 11,934,000 (US$ 265,200).
6.5 The Cost of feeding the students - DF
Every attempt is made to supply food from what is grown on the
demo-farm and through the nutritional and food production laboratory portion of
the course of study. Each student will
learn how to make nutritional non-wheat flour and numerous other ingredients
from the organic farm production, including mozzarella cheese made from the
demo-farms own caribou diary. The
culinary staff of one chef at Php 12,000 per month and three sew chefs at Php
6,000 per month each for a three-year total of Php 1,080,000 (US$ 24,00). The daily food allowance per student to cover
the cost of staples is P50; 50 students per day for 180 days per year x 3 years
= Php 1,350,000; 900 students, per capita:
Php 2,700 (US$60). The total of
feeding is Php 2,430,000 (US$ 54,000).
6.6 The Cost of the program of learning - DF
The 2,940 students require learning materials and presentations that
on a per capita basis cost Php 34,439 (US$765), which is included in the cost
of providing the instructors and instruction materials.
6.7 The Offset Cost - DF
The offset may be funded through sponsorship, government programs
and barangay participation. The cost of
the offset is attributable to two full-time marketers in search of grants,
sponsors and funders. Each marketer is
paid Php500 per day for 288 days or Php 288,000 per year for three years: Php 864,000 (US$ 19,200).
6.8 The Cost of advertising, recruiting - DF
Advertising for the Institute is done through seminars held at the
seat of government in the NCR in conjunction with ongoing and regularly
scheduled government training programs.
Simply, a program presentation table at each seminar registration is
sufficient to make the Institute and its programs known. The Technical
Education and Skills Development Authority (TESDA) offers program
evaluation and when accepted the TESDA may sponsor all or a portion of the
tuition cost for Filipino students attending. Submission of candidate names to the
Institute for its evaluation of the candidate’s qualifications is part of the
recruitment process. A possible recruit
must pass a screening to determine the likelihood of successful after action
project development in the recruit’s home barangay. This advertising and recruitment process is
outsourced at a success fee of Php 1,000 per accepted recruit. The recruitment target is 2,940 to achieve the
7% critical mass, however each year the target is 600 students, a possible
annual fee of Php 600,000 or for three years Php 1,800,000 (US$ 40,000).
6.9
The Cost of after
action program follow-up - DF
Each student completes the course and then returns to his/her
barangay, mostly at another province.
The graduate possesses knowledge learned from the Institute and a “play
book” that he/she produced during the course of study. The play book specifies the project that the
graduate will pursue once back at his/her barangay and all of the feasibility
questions have been answered and contained within the play book. This cost is
specified in Section 10.2, The Cost of Achieving Critical Mass.
6.10 The Cost of incentives to establish business in the student’s own
barangay as its representative - DF
Each barangay is to be programed to commence with its own ten
hectare program over a period of four years.
The initial year involves preparation through its nursery and
propagation of trees to be used in the planting scheme. Each play book will be written to adapt to
the particulars of the student’s barangay.
Each attending student must have title to land and or property or access
such that it is conducive to establishing his credibility and supporting the likelihood
of his succeeding in achieving the goals of his play book. The follow-up staff at Hilltop Moringa Farms
will consist of one manager, three field representatives, two clerks and a
marketing specialist and assistant, a computer network and communications
capabilities to follow through. The
manager will oversee the follow-up program and dispatch the field
representatives to make appropriate field visits. As part of the recruitment process the
recruit will recommend leads for possible sponsors to fund and oversee the
development of the play book in the respective barangay. The marketing specialist and assistant will
close the leads and formalize the relationship by memorializing it. The cost of the staff and the program
is: manager, Php 40,000 per month; three
field representatives Php 20,000 per month; communications network Php 100,000;
times three years: Php 300,000 plus
staffing: Php 2,880,000 totaling Php
3,180,000 (US$ 70,666).
6.10.1 Income Derived - DF
Income derived from the subsequent business as
developed in the barangay may financially benefit Hilltop Moringa Farms which
offers its marketing and sales leads at a commission. Start-ups normally take three years before
there is positive revenue. Therefore,
only commencing in Y-4 is a 3% commission revenue to be expected by Hilltop
Moringa Farms or Php 1,260,000 per 42 barangay commencing in Y-5 and doubling
in Y-6, Y-7 and Y-8. The one-year computation
of the estimated royalty in Y-5 is Php 52,920,000 (US$ 1,176,000).
The purpose of the hotel serves to support the Institute. A parallel example might be the perfume
manufacturing industry in France. Many
of the small operations supplement their income and offset expenses by
designing the facility to be conducive to tourism, visitors and the curious;
all for an entrance fee. The Hilltop
Moringa Farms Institute and Demonstration Farm is physically situated at the
foothills of the central mountains of Mindoro.
The view is magnificent and constantly changing throughout the day. The weather is excellent and the air is
pristine. It is quiet and pollution
free. Spending a two or three-day stay
while both touring the facilities and the grounds, and trekking either on foot
or on horseback into the lower levels of the central mountains is a unique
attraction. The Institute is constantly
looking for public support and the hotel enhances the possibilities of
soliciting contributions.
7.1 The Cost of the hotel - H
The hotel comprises one complete floor (1,000m²) of the five story
facility. Each of 50 deluxe rooms is
3.5m x 4.5m or 17.5m² for a cost of Php 11,940,000 (US$ 265,333).
7.1.1.1
The offset of the collateral
hotel income - H
Deluxe rooms are nowhere to be found in all of the
province of Occidental Mindoro. There
are located within a 30 kilometer radius approximately 10 hotels, lodges and
“resorts”. None of which would qualify
for a three-star hotel rating and the theme of each is either sea-based or urban
business stays. The highest priced rooms
are approximately Php3,000 per night at a beach lodge. This hotel is a strong 3-star with excellent
accommodations, food, recreation and spa facilities and the room price, double
occupancy at Php3,000 per night or Php4,500 single; Php 1,350 per extra,
averaging Php 5,000 for 3 nights per week, 52 weeks per year = Php 39,000,000
per year for three years: Php
117,000,000 (US$ 2,600,000).
8 the Demonstration Farm Grounds and the Institute and the Cost for Maintenance and Staff (“DFMS”)
The Demonstration Farm Grounds consists of 8.2 hectares and More
than 10,000 producing trees of one sort or another. The grounds require irrigation, general
maintenance as in caretaking in order to keep all aspects of the grounds in tip
top operating condition. The Institute
is a facility that houses both living and knowledge components for students,
outside visitors and visiting VIP Instructors.
The facilities require all of the maintenance expected of any first
class facility that treats all of its guests as first class visitors.
8.1 The Cost of The Demonstration Farm Grounds Maintenance - DFMS
As a generalized approach to budgeting a staff of 10 caretaker
personnel led by one supervisor and all appropriately equipped. The cost of the equipment and its maintenance
is estimated at the same annual labor budget for 365 days per year so manning
is so calculated and will require more individuals in order to maintain
staffing levels throughout. The
supervisor’s pay rate is Php 400 per day and the caretakers average pay rate is
Php 200 per day or a total of Php 876,000 plus Php 876,000 for equipment of a
total annual cost of Php 1,752,000 * 3 years = Php 5,256,000 (US$ 116,800).
8.2 The Cost of the Institute Maintenance -
DFMS
The institute consists of the five-story modern facility that houses
dormitory, hotel and VIP units on two of the floors that also provide for
resource learning, entertainment and eating.
On the other three floors the primary theme is product processing,
manufacturing, packaging, inventory and shipping. It too is configured for receiving both
training and general visitor audiences.
The maintenance is expected to be first class in nature for the visitors
and primarily sanitary and functional for the processing operations. A staff of two personnel per floor and one
supervisor are required on a manning basis of 365 days per year. Their equipment is budgeted at 1/10th
of the personnel budget. Manning is Php
876,000 plus Php 87,600 for equipment * 3 years = Php 2,890,800 (US$64,240).
8.3 The Cost of the Institute’s Full-time Professional Staff and Admin
Staff - DFMS
Other than the individuals already accounted for in sales, marketing
and field operations regarding the recruitment of students and the follow-up of
their projects the lodging, food and beverage and housekeeping aspects of the
lodging require one supervisor and three housekeepers, food and beverage has
been addressed supra, and the administration requires one general manager who
also oversees operations, an assistant and three clerks. They see to the everyday requirements of
hotel and restaurant management, including marketing, sales and guest
relations. The institute also has a
manager and a staff of instructors, data personnel, technical personnel and
public relations personnel; 3-year cost of P3,000,000 (US$ 66,667).
9 Hilltop Moringa Farms (“HMF”)
The Hilltop Moringa Farms is the tradename and name of the business
entity which has as its goal to Reforest the Philippines, eradicate poverty
through agroforestry and help mitigate climate change. Demonstration of how to make money growing
trees is the key to achieving the reforestation segment of our goal. Of course the eradication of poverty through
agroforestry aspect does not expect to reach out to those living under a bridge
within the core city of Manila, but it does expect to reach out to each community
or barangay that participates in having its own productive agroforest. With seven percent success we believe that
critical mass will be achieved and the expansion of profitable reforestation
will expand and self-perpetuate as is inherent when achieving critical
mass.
9.1 The Cost of Processing, Manufacturing, Packaging, Inventory and
Shipping - HMF
Generally, the cost of producing a finished product ready for
consumer consumption is Php 600 per kilogram.
Project 100,000 has 33,000 productive trees each year for three years
for a total of 100,000. The production
per year of each tree is one kilogram of finished product, therefore the cost
is in Y-1: Php 19,800,000; in Y-2: Php 39,600,000 and in Y-3: Php 59,400,000; a 3-year total of Php 118,800,000
(US$ 2,640,000).
The main office, executive house, visiting VIP apartments, cottages
and amenities are designed to be at the highest point of the Hilltop Moringa
Farms complex. This is the business development
center all business partnership leads and prospects will meet and discuss
presentations for the purpose of indoctrinating and negotiating as to
formalized and finalize partnership arrangements, sponsorships, scholarships
and financing plans for achieving the program’s Reforestation Critical Mass. The cost of building, staffing and operating
one executive residence comprising 500 m², four VIP apartments co-located at
the executive residence comprising 80 m², four cottages 100 m² for a total of
680 m² @ Php 11,934 = Php 8,115,120 (US$ 180,336).
10.1 The Cost of Support Personnel - FB
The institute’s administrative staff includes the main office,
executive house, visiting VIP apartments, cottages and amenities. Additional staff includes culinary, housekeeping,
facility maintenance and grounds keeping; nine personnel at an average daily
salary of Php 200 or Php 1,800 x 365 = Php 657,000 x 3 years = 1,971,000 (US$
43,800).
10.2 The Cost of Achieving Critical Mass - FB
The expenses associated with recruiting students, teaching them and
providing the Demo-farm and the Institute and even the follow-up field work
with graduates of the program have been computed throughout this
report/plan. The cost, however, of
successfully achieving seven percent of the 42,000 barangays or 2,940 barangays
that each grow out 100,000 trees that are the basis for their own Project
100,000. Hypothetically and for ease of
explanation each of the successful barangay is congruent with the next one, so-on-and-so-forth. In such an ideal case every 10th
barangay would provide the manufacturing capabilities. The marketing, sales and shipping
coordination may be handled by Hilltop Moringa Farms in Tanyag. The three-year cost of Php 118,800,000 (US$ 2,640,000)
would therefore be spread over each group of 10 barangays for an average per
barangay cost of Php 11,880,000.
10.2.1 The Production Offset
Five executive cottages and four VIP
apartment units have a per night rental value of Php 5,000 double occupancy
with a 30% additional charge for each extra bed or a 50% of the full rate if
single or Php 7,500. The average per
night rental is Php 9,000 for a total of 2 nights per week or 104 nights in Y-1
times 9 units, times Php 9,000 = 8,424,000 times 3 years = Php 25,272,000 (US$ 561,600).
10.2.2 Slow Start Alternative
The recruiting process, sponsorship and
follow-on assistance when targeting the initial ten barangays that can bring
their own funding to the program, can be designed for each to perpetuate the
development of other barangays and the financial incentive is calculable from
the production offset. This model allows
for the rapid expansion of the program to achieve Critical Mass at the lowest
possible centralized cost by enabling profitability through each successful
barangay investing in their own partner barangays.
The demonstration farm with its components and training institute in
addition to the thousands of producing trees at the farm also in addition to
the Project 100,000 Moringa oleifera trees, intercropped with turmeric, is US$6.75
million over the first three years with a revenue for the same period of
US$6.89 million. In the out-years the
farm receives its 3% royalty from its institute’s success partners, potentially
more than 2,400 of them developed over a couple of decades.
The demonstration farm with its components and training institute in
addition to the thousands of producing trees at the farm also in addition to
the Project 100,000 Moringa oleifera trees, intercropped with turmeric, is US$6.75
million over the first three years with a revenue for the same period of
US$6.89 million. In the out-years the
farm receives its 3% royalty from its institute’s success partners, potentially
more than 2,400 of them developed over a couple of decades.
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