A PROJECT PROPOSAL

Of

PARAGUA FOOD PRODUCTS ENTERPRISE

I Project Title : Processing of Spicy Anchovies & Cashew Nuts

II Proponent : Anita B. Maigue

Proprietor
a.Barangay Sta. Monica, Puerto Princesa
City
b Tel.# 048 -433-6071
c. Cellphone : 09106288800

III. Financing Institution : City Government (Livelihood

Component Program)

IV. Project Requirement : PhP 200,000.00

The PROPONENT:

The Paragua Food Product, Inc., is a small scale family based or sole
proprietorship enterprise duly recognized by the Department of Trade &
Industry (DTI) ; Bureau of Foods & Drugs (BFAD); and having business
permit from the City government. Having been engaged in several fish and
food recipes development activities like peanut butter ; spicy dilis, cashew
nuts and other food product items. It started to introduce spicy dilis, to local
consumer until further calls the attention of the local government of the
product. Sometime in 1999, it gains recognition as the first prize food
product awardee category in the competition sponsored by DTI and the
provincial government in the search for the ORIGINAL PALAWAN
PASALUBONG contest.
 Participation to the exhibits of the products outside the province and
city, especially held at STAR MEGAMALL in Mandaluyong City gave the
promotional awareness of the interested distributor and consumer of the
product produced by the enterprise.

Two main products are being processed by the enterprise, both spicy
anchovies and cashew nuts (roasted, salted & brittled). These items supports
the activity of the proprietor since its was established.

Sometime, due to the erratic supply of the raw materials for the
spicy dilis especially the dried anchovies is enough to venture to some
profitable endeavor like the processing, trading & marketing of cashew

. The proponent intend to borrow mobilization fund for the

processing of spicy anchovies & cashew nuts. The project aim to expand its
meager financial resources through the availment of LOAN ASSISTANCE
from the City Government under the Livelihood Component program..

V. PROJECT DESCRIPTION:

A. CASHEW NUT PROCESSING:

B. SPICY ANCHOVIES (“DILI) PROCESSING:

Cashew Nuts Processing : The nuts are taken out from the fruits and dried in
the sunlight. With the aid of decortating gadget, the shells is separated from
the fruit shell. Roasted in the modified oven until it is totally on its palatable
taste. Ready to sell to the trader and the trader do the strategy for marketing.
Repackaging is done to suit in the affordability of the customer such as 100
grams; 200 grams; 250grams; 500 grams up to 1 kg. Labelled by the traders
registered entity.

Observation made by the proponent as it is being actually practiced presently in

marketing the Roasted Cashew Nuts is through retailing to the different
establishment like NCC; displayed at Hotels restaurants ; airport store and the
repeat order of the customer. Daily Maximum Volume of disposal of the roasted.
Is not less than 30 kg per day. It is expected that 900 kg. Monthly production is
needed assuming the price is P53.00 pesos per kilo. More or less PhP112,500.00
capital investment is needed to venture in the project. (See attached sheet for the
assumption description)
 FLOW OF PROCESSING OF CASHEW NUTS:

GROWERS- - TRADERS/BUYERS : ------.>-PROCESSORS:

PRODUCTION PROCESS-
-------------------------------
*drying
*removal of shell
*Roasting
*removal of remaining skin
+Oven toasting
*Packaging & labeling
*Distribution to customers

PROCESSING SYSTEM TECHNOLOGY FOR SPICY DILIS:

A tedious process is being done to attain the palatable spicy anchovy. From raw
dried anchovies to the processor until it reaches to the consumer or market distribution
will take the following step[s:

SELECTION OF DRIED ANCHOVIES (class A) CLEANING (removing of foreign

matters) PREPARATION OF MIXTURES ( available condiments) THAWING –
COOKING/frying – PLACING TO BOXES –WEIGHING – SEALING -- &
LABELLING : ------DISTRIBUTION/MARKETING;

PROJECT GENERAL DESCRIPTION:

The Spicy Dilis System & Cashew Nuts :

The proponent intend to expand the spicy dilis & cashew production system from
200 kgs per month (Maximum Available Volume) to 1,000 kls per month and 2 workers
presently engaged to 5 workers additional to be employed in the project.

Processing Plant:

Presently, the area is located in the Staffhouse of BFAR-RFTC –PALAWAN, in the

campus of WPU with an area of 3m x 5m or (15 sq. m.) working space. Enough to
accommodate the processing of the product. There is a projection to expand the
processing plant if the financial resources will be available and the site is owned by the
proprietor.

Raw Materials:
 Dried Anchovy –regardless of any specie of anchovy as long as in good size and
quality. Condiments or mixtures are needed in the processing of spicy dilis such as
flour; sugar; eggs; pepper mono sodium glutamate salt; and cooking oil.

Cashew Nuts : most preferable the good nuts is being processed to attain quality
processed cashew nuts either brittle, salted or roasted. Cooking oil is needed in brittle &
salted processing while roasted requires the oven for toasting the nuts.

Supplies ,packaging & Other Materials :

The supplies needed are the microwavable plastic boxes (round & rectangular) PA
003,cellophane; cartoons; tying rope; packaging tape; tissue papers; detergents/soap, etc.

EQUIPMENT & UTENSILS:

The proponent had the existing and functional equipment and utensils presently used
in the production of spicy dilis and cashew nuts. (gasul tanks; frying bowl, strainers;
mixing bowl; weighing scale; blower; fire extinguisher, etc.) The need to purchase big
oven for the roasted cashew processing and ideal containers to stock cooked cashew
meat before packing.

Transportation & Communication Facilities:

The available transportation & communication facilities used for the business
endeavor are : one unit motor vehicle; one unit tricycle; landline telephone & fax
machine & Cellphones:

Land & Buildings

Presently, the proprietor is staying in the staffhouse of the BFAR-RFTC –PALAWAN
wherein, the processing plant is located and installed, however, outside the staffhouse,
the real property is located with 300 sq. meter area with building.

VI. SCOPE OF ACTIVITIES:

The Preparation Period

The Preparation period covers all the activities formal inception of the project to the
actual commissioning or availment of the loan to the project implementation such as:

SUMMARY OF ACTIVITIES:

1.Preparation of Detailed Feasibility Study

2. Procurements of raw materials. Supplies & equipment
3. Processing –prooduction & marketing
The Operation Activity :

1. Market Information
This involves the activities to inform the prospective clienteles/customer of the
product. Presently, the customers and distributors of the product is from the city,
province, Metro Manila. Also walk-in clients from abroad as for pasalubong. The use
of tri –media approach would help much in the widespread dessimination of the product.
The participation to the exhibits in Metro Manila (SM-Megamall) gains a great
momentum to be known about the product of the PARAGUA FOOD PRODUCTS
ENTERRPRISE.

2. Sales Activity
The repeat order of the customer indicates the good quality of the product sold
by the enterprise. The main point of this part is the sustainability of the production which
the distributor/customers demands is always provided. Distribution to the local markets,
hotels and restaurants, department stores (NCC) and distributors from Manila, Makati,
Isabela and other provinces is done Through telephone or by personal orders and
enternet is being accommodated.

3. Parallel Business Activities:

The enterprise will engage to some other food processing aspects such as the
peanut butter production, etc., to augment the business income and activity of the worker.
Fishermen & traders will be benefited to the project.

VI-A : DETAILED SCOPE OF ACTIVITIES:

Phase-I : Implementation of Approved Feasibility Study:

The enterprise (PARAGUA FOOD PRODUCTS) with the financial assistance

provided by the City Government will do the implementation the in processing and
production of the goods contemplated. Maximum Available Volume will targeted to
attain the profitable business endeavor.

Phasse –II 2. Mobilization of Production Workers:

The recruitment or employing additional production workers is required to attain

the MAV. Additional purchases of Oven Machine for the roasted cashew processing.
CHART OF ACTIVITIES:

-----------------------------------------------------------------------------------------------------------
-
PHASE : ACTIVITIES / no. of days : (1-30 ) : (31 -60) ; 61-90 : 91-120

I : Implementation of Approved FS ******

- - - - - - - - - - - - -- - -- - - -- - - -
Mobilization/recruitment Production
Workers. : ******

2. Procurement of Raw Materials/Supplies/

Equipment. : ***

3. Production/ Processsing : ***********************..

4. Marketing/Selling/Distribution : ************************

VII. PROJECTED FINANCIAL STATEMENTS:

A. CASHEW NUTS PROCESSING:

DEVELOPMENT COSTS:

I. Raw Materials :
Purchased of Cashew Nuts 30kls.or ganta at P53.00 =P1,590.00
II Labor Cost for Processing Result :
19.3 kls ---- at P30.00/kl --=P579.00 (removal of shell)
15 kls. -----at P15.00/kl =P225.00 (cooking/roasting)
15 kls. At P22.00/klk =P330.00 (removal of inner skin
P1,134.00
Raw materials -cashew nuts-----------P1,590.
PhP2,724.00 = gross expenses/day

III. SALE OF PRODUCTS:

Price per kilo = P250.00/kl x 15 kls.= P3,750.00 gross sale/day

Gross sale /day - - - - - - - - - - -- -P3,750.00

Gross expenses/day ---------------- 2,724.00
------------------
 P1,026.00 net gain/day

ANNEXURE – A : PROJECTED PRODUCTION :

----------------------------------------------------------------------------------------
month : volume : price/kl total cost
------------------------------------------------------------------------ -----------------
1, Jan : 30kls/day (900kls) P53.00kl P1,590.00/day ( P47,700.00)
2. February -do-
3. March ----------- do-
4. April -do-
5. May -do-
6. June -do-
7. July -do-
8. August -do-
9. September do-
10 October do
11. November do
12. December do
-------------------------------------------------------------------------------------------------
TOTAL 10,800 kls. PhP572,400.00
-----------------------------------------------------------------------------------------------------
C. SPICY DILIS:

INCOME PROJECTION:

Inputs: Given 1000 –kls- raw dried anchovies (dilis / month (MAV)
@ P150.00/kl price of dried dilis
-----------------
PhP 150,000.00
+ PhP 19,550.00 ----- expenses for the mixtures & other
--------------------- costs to arrive at finished products
PhP 169,550.00 ------gross investment.

COMPUTED:

Price finished product (Spicy Dilis /kl) = PhP350.00

for 1,000 kls/processed/month (MAV)=PhP350,000.00

PhP350,000.00 – PhP 169,550.00

= PhP180,450 Net Income before tax
ANNEXURE – B : (PROJECTED INCOME FOR 8 MONTHS PERIOD)

-----------------------------------------------------------------------------------
Period/months: Gross Income: Gross Expenses NET GAIN
------------------------------------------------------------------------------------

1st (January.) P112,500.00 : P81,720.00 P30,780.00

nd
2 (February) -do- xx xx
3rd-(March) -do- xx xx
4th (April) -do- xx xx
5th (May) -do xx xx
th
6 (June ) -do- xx xx
7th ( July) do- xx xx
th
8 (August) -do- xx xx
9th (September) -do xx xx
th
10 (October) do- xx xx
11th (November) do xx xx
12th (December) do xx xx
-----------------------------------------------------------------------------------------
TOTAL :PhP1,350,000.00 PhP980,640.00 PhP360,000.00

AXXENURE-C –(LOAN AMORTIZATION SCHEDULE)

(Principal Loan Amount : P200,000.00 interest ( 0%)

Terms 2-years
----------------------------------------------------------------------------------
Period(Months) : AMOUNT Interest Total Cost
------------------------------------------------------------------------------------
2008-2009
-------------
Year –I PhP=100,000.00
Year -2 PhP=100,000.00
----------------------------------------------------------------------------------------
MONTHLY AMORTIZATION ---------PhP=8,333.33
 A PROJECT PROPOSAL

Of

PARAGUA FOOD PRODUCTS ENTERPRISE

----------------------

by:

ANITA BACOMO MAIGUE

(Proprietor)

Project Title : Processing of Spicy Dilis & Cashew Nuts

Location : Barangay Sta Monica, Puerto Princesa City
Project Amount: PhP200,000.00