western mindanao state university 2

8/3/2019 Western Mindanao State University 2

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INTRODUCTION

Bamboo or kawayan locally known is a woody perennial belonging to the family

of grasses Poaceae. It is one of the fastest-growing plants on Earth with reported growth

rates of 100 cm in 24 hours (ASST, 2011). It is primarily growing in regions of tropical

or warmer climates like in some country in Asia. A 20-meter hardwood tree can take up

to 100 years to replace. In comparison, a 20-meter bamboo Culm can be replaced in as

little as 50 days (SBI).

Abamboo grove also releases some 35 percent more oxygen into the air than asimilar-sized stand of trees, and it matures (and can be replanted) within seven years

(compared to 30-50 years for a stand of trees), helping to improve soil conditions and

prevent erosion along the way.

Bamboo also is one of the important materials for Furniture, establishment,

agroforestry, engineering and many purposes in our community and society. This also

one of the highly demand in world market. Bamboo plantation is a productive activity

which can help the economy, environment and poor communities region.

According to Bareja, There are more than 1,000 species of bamboo worldwide

and it was documented that there were 62 native and introduced species of bamboo in the

Philippines with various growth habits including clump and nonclump-forming, erect

and climbing types. Twenty one (21) of these are endemic or native to the country.

Thirteen (13) are climbers and 8 are erect (Bareja B., 2010).The Philippines has several


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species of bamboo which is highly recommended for market such as Bambusa spp. (

kawayan tinik, bayog, and kawayan tatoo) , machiku and giant bamboo (Bareja B., 2010).

The PCARRDs Bamboo Information Network describes Kawayan tinik as clump

forming, has spiny branches, and produces clumps that grow to a maximum of 20

centimeters (cm) in diameter with internodes of up to 60 cm long. It reaches up to 20

meters high and has superior strength and durability.. It is also one of the seven major

species recommended for shoot production in Yunan, China and is still considered as the

best species for shoots in the Philippines. As a grass, it regenerates faster than wood, has

a very short growth cycle, and can be harvested four years after planting (PCARRD,

2001).

Kawayan tinik regenerates faster than wood, has a very short growth cycle, and

can be harvested four to seven years after planting. As one of the economically important

species of bamboo, it is considered as the best species for shoot production in the

Philippines. Its other uses include furniture, handicraft, construction, food, biofuel, and

environmental protection.

Benefits of bamboo plantation

A bamboo grove also releases some 35 percent more oxygen into the air than a

similar-sized stand of trees, and it matures (and can be replanted) within seven years

(compared to 30-50 years for a stand of trees), helping to improve soil conditions and

prevent erosion along the way (Environmental magazine, 2008).


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Bamboo also is the best solution for the problem of global warming in many ways:

1) Bamboo absorbs Carbon dioxide and releases oxygen into the atmosphere 3 to4 times higher than many other trees.

2) One bamboo tree generates plenty of natural oxygen sufficient for more thanone human beings daily requirement

3) Grows more than one foot a day and covers with good canopy faster than anyother tree and cooling the surroundings.

4) Bamboo can replace the wood from forest for all applications such as paper,flooring, furniture, charcoal, etc.

5) Bamboo co-polymer plastic replaces 50% of plastic which is essential but noteco friendly.

6) Bamboo effectively cleans the water pollution of the septic tank dischargeand factory effluent by its natural affinity for nitrogen, phosphorus and heavy

metals.

7) Bamboo enriches the soil naturally and prevents soil erosion.


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Project Description

The project proposes to produce bamboo pole for the lumber yard, furniture and

handicraft business in different market in Zamboanga City, each market will be survey

and ask what will be their demand of bamboo pole to estimate the distribution of the pole

on the different market. The harvesting of bamboo will be operating quarterly in a year.

Each operation in 2 hectare will produce 1,636 poles. The kawayayng tinik (bambusa

blumeana) will be the variety to be choosing for the plantation of the bamboo.

The site of the plantation will be in WMSU-EFA, Upper Lapaz, Zamboanga City.

Site was choose because it is one of the area in lapaz where residents depend only with

their activities (kaingin making) which results of destruction of the forest, While with this

bamboo plantation it has environmental and economical benefits to gain for the

community and also the WMSU-EFA management have less problem on the resident

living there.

Objectives

The business aims is to improve/develop the WMSU-EFA in Upper Lapaz.

Specifically it aims to attain the following objectives:

1. To determine the feasibility of the business.2. To be able to identify the total cost, total revenue and profit of the production

in 2 hectare for bamboo plantation.


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MARKET FEASIBILITY

Demand of the products

Being the fastest growing grass which can shoot up a yard or more a day, bamboo

reaches maturity quickly and is ready for harvesting in about 4 to 7 years. Bamboo does

not require replanting after harvesting because its vast root network continually sprouts

new shoots which almost zoom up while you watch them, pulling in sunlight and

greenhouse gases and converting them to new green growth. Due to the diminishing

wood supply, bamboos are now in high demand as raw material sources for furniture,

handicraft and many products.

The stable worldwide demand for wood and the increasing interest in sustainably

produced timber further boost the potential market for industrial bamboo products.

Among many western consumers, bamboo is an inherently sustainable resource. Thus

industrial bamboo is seen to compete for hardwood in the twenty-first century.

Supply of the products

Knowing the Number of market (Lumberyard, furniture and handicraft business)

in Zamboanga City is important to know the supply of demand on the production. One

example on this will be the Angelinos lumber dealer; The Manager on the plantation will

contract with this market, to supply their demand on bamboo pole. The cost of the

bamboo will be php 100/pole (base on interview). Also the supply of demand shall be

based on the existing competitors in supplying bamboo pole.

The bamboo pole shall be delivering to the market of which that will be contract

on supplying of bamboo pole.


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PRODUCTION/TECHNICAL ASPECT

A. Production ProcessThis study deals with the production of bamboo kawayan tinik (Bambusa

blumeana) at WMSU experimental forest area in Upper Lapaz, Zamboanga City.

The location will be survey to determine the right site for the plantation. It must

be in flat area or is not more than about 7 or 8; it should not be greater than 15 slope

(Growing bamboo, 2006). The area will be in 2 hectare and recommend to site the

plantation where destructed area were kaingin making done by the people (uplanders).

The area must be clear/brush for the plantation. Bamboo will be planted with a

spacing of 7x7m in 2 hectare area, with a total number of 409 seedlings. Applying the

fertilizer will be conducting after planting at list 4 months on the 1st

year (ones a month

of applying). The following year activities are more in intermediate treatment such as

weeding. On the third year activity it will be on thinning, cutting or remove damaged,

defective and dead culms to have good quality of shoots growing, also weeding, removal

of competitors of nutrients of the clums. On the 4rth year will be on pruning, cutting of

unnecessary branches to have nice clums and weeding same activities until on year 6.

The harvesting year will be on the seven year. Dry season is the best time to

harvest bamboo when the culms are lowest in terms of starch content level making it less

susceptible to powder post beetle attack. No shoot emergence also occurs during this

time; hence shoot damage is evaded (Rivera m, n.d).After harvesting in will be


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distributed at different market (Lumberyard, furniture and handicraft business) in

Zamboanga City.

Sample write-up figure 1 Flow process in the production of bamboo pole

Fig. 2 shows the product produce (Bamboo pole)

site

preparationplanting

intermidite

treatmentharvesting market


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FINANCIAL FEASIBILITY

To determine the profitability of this study the total cost will be computed over all

activities done from year 0 to year 10, the 1 st harvest will be on the year 7 until year 10.

After determining the total cost and total revenue, it will be computed to know the profit

based on the formula, same as with the NPV, BCR and ROI. Capital will be php.400, 000

which will be loan to the bank and invest to this plantation.

Total seedlings cost

The area will be in 2 hectare, the cost of the production will depend on the size of

the plantation. 7x7 spacing will be use to plant the bamboo clumps.

No. of seedlings =

=

= 409 seedlings

With this total no. of seedlings, 20% mortality rate will be use have the total no. of

seedlings 491 to be buy.

Mortality rate of 20% =491 seedlingsThe cost of per seedling (clumps) will be php 20.00

Cost= php 20.00 x 491 = php. 9,820


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FIX COST

The rental of the land will cost 10,000 per year to WMSU-EFA which is under the

College of Forestry and Environmental Science.

The annuity formula no. 4 was use to determine the future value of the amount

after that the discounting formula no.2 was use to determine the present value.

Vn = a

Vn = a

Vn = 259,587

Vo =

Vo =

Vo = 41,925

Fix cost is Php 41,925

MANAGERIAL COST

Manger cost will be php. 20, 00/year using annuity and discounted formula the

cost computed from year 0 to year 10.

Total management cost = 83,849


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Production schedule from year 0 to year 10

In year 0, sites will be clear and plant the seedlings, also on the first month to 4rthmonth of planting it will be apply fertilizer (complete fertilizer) once a month.

Year 0 (table 1 shows the activity in year 0)

Activities Labor (2hectare)

Unit Price (php) Days ofoperation

Amount(php)

I. Site preparation

*brushing/cleaning

20 MD 400/labor 1 day 8,000

II. Planting

*Digging hole and

planting

*Buying of Clumpsseedling

20

__

409 Holes

491seedlings

20/holes

20/seedlings

1 day 8,180

8,820

III. Transportation ofseedlings

*rental of tractor*Hauling of seedlings

from source to area site

--20

day491

seedlings

5,000/day10/seedlings

1 day 5,0004,910

IV. Other

*Establishment of bank

houseMaterials for

establishments

>labor

*tools for planting

---

2

---

--

Days

materials

2,000

100/day

200/tool

---

2 days

---

2,000

400

2,000II. Fertilizer

*transportation*deliver to site

*applying fertilizer

>1st

month>2nd month

>3rd month

>4rth month

---

------

2020

20

20

4 sacks

1 waydeliver

---

2 hectare2 hectare

2 hectare

2 hectare

1,250/sack

200/deliver50/sack

200/ labor200/ labor

200/ labor

200/ labor

----

1 day1 day

1 day1 day

1 day

1 day

5,000

200200

4,0004,000

4000

4,000

total 60,710


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In the 1st year the first activity will be on weeding, removing ofcompetitorsvegetation around the culms.

Year 1 (table 2 shows activity in year 2)

Activities Labor (2hectare) Unit Price (php) Days ofoperation Amount(php)

I. Weeding

Q1

Q2Q3

Q4

20

2020

20

2 hectare

2 hectare2 hectare

2 hectare

200/labor

200/labor200/labor

200/labor

1 day/Q

1 day/Q1 day/Q

1 day/Q

4,000

4,0004,000

4,000

II. Fertilizer

*transportation

*deliver to site

*applying fertilizer

---

---

---

20

6 sacks

1 way

deliver

---

2 hectare

1,250/sack

200/deliver

50/sack

200/ labor

----

1 day

1 day

1 day

7,500

200

200

4000

total

27,900

Year 2 (table 3 shows activity on year 3)

Activities Labor (2

hectare)

Unit Price (php) Days of

operation

Amount

(php)

I. weeding

Q1Q2

Q3

Q4

2020

20

20

2 hectare2 hectare

2 hectare

2 hectare

200/labor200/labor

200/labor

200/labor

1 day/Q1 day/Q

1 day/Q

1 day/Q

4,0004,000

4,000

4,000

II. thinning

Thinning tool

20 2 hectare

10 tools

200/labor

200/tools

1 day

----

4,000

2,000

Total

22,000


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Year 3 (table 4 shows activity in year 4)



Amount(php)

I. weedingQ1

Q2

Q3

Q4

20

20

20

20

2 hectare

2 hectare

2 hectare

2 hectare

200/labor

200/labor

200/labor

200/labor

1 day/Q1

1 day/Q2

1 day/Q3

1 day/Q4

4,000

4,000

4,000

4,000

II. Pruning

1st

operation

2nd operation*Pruning tool

30

--

2 hectare

2 hectare10 pruning

tools

200/labor

200/labor150/pruning

tools

1 day/1st

op.1 day/2

nd

op----

6,000

6,0001,500

total 29,500

Year 4 (table 5 shows the activity on year 5)

Activities Labor (2

hectare)


operation

Amount

(php)

I. weeding

Q1Q2

Q3

Q4

2020

20

20

2 hectare2 hectare

2 hectare

2 hectare

200/labor200/labor

200/labor

200/labor

1 day/Q1 day/Q

1 day/Q

1 day/Q

4,0004,000

4,000

4,000

II. Pruning

1st

operation

2nd

operation

30 2 hectare 200/labor 1 day/1st

op.1 day/2nd

op

6,000

6,000

total

28,000


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Amount(php)

I. weeding

Q1Q2

Q3Q4

2020

2020

2 hectare2 hectare

2 hectare2 hectare

200/labor200/labor

200/labor200/labor

1 day/Q1 day/Q

1 day/Q1 day/Q

4,0004,000

4,0004,000

II. Pruning

1st operation

2nd

operation


op.

1 day/2nd

op

6,000

6,000

total 28,000


Activities Labor (2

hectare)


operation

Amount

(php)

I. weeding

Q1Q2

Q3Q4

2020

2020

2 hectare2 hectare

2 hectare2 hectare

200/labor200/labor

200/labor200/labor

1 day/Q1 day/Q

1 day/Q1 day/Q

4,0004,000

4,0004,000

II. Pruning

1st

operation2nd operation


op.

1 day/2nd

op

6,0006,000

total 28,000


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The first harvest will be on the 7th year, the harvest pole will be deliver to themarket which will be contract.


Activities Labor (2hectare) Unit Price (php) Days ofoperation Amount(php)

I. weeding

Q1

Q2Q3

Q4

20

2020

20

2 hectare

2 hectare2 hectare

2 hectare

200/labor

200/labor200/labor

200/labor

1 day/Q

1 day/Q1 day/Q

1 day/Q

4,000

4,0004,000

4,000

II. Harvesting

*cost for labor

Q1

Q2

Q3Q4

*tool for harvest (power

saw)

30

30

30

30

---

2 hectare

2 hectare

2 hectare

2 hectare

4 powersaw

200/labor

200/labor

200/labor

200/labor

5,000/powersaw

1 day

operation

---

6000

6000

6000

6000

20,000

III. Transportation of

harvest (tractor)

day 5000 2 days 10,000

Total 70,000


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Amount(php)

I. weedingQ1

Q2

Q3Q4

20

20

2020

2 hectare

2 hectare

2 hectare2 hectare

200/labor

200/labor

200/labor200/labor

1 day/Q

1 day/Q

1 day/Q1 day/Q

4,000

4,000

4,0004,000

II. Harvesting

*cost for labor

Q1

Q2Q3

Q4

30

3030

30

2 hectare

2 hectare2 hectare

2 hectare

200/labor

200/labor200/labor

200/labor

1 day

operation

6000

60006000

6000


harvest (tractor)

day 5000 2 days 10,000

Total 50,000




Amount(php)

I. weedingQ1

Q2

Q3Q4

20

20

2020

2 hectare

2 hectare

2 hectare2 hectare

200/labor

200/labor

200/labor200/labor

1 day/Q

1 day/Q

1 day/Q1 day/Q

4,000

4,000

4,0004,000

II. Harvesting*cost for labor

Q1

Q2Q3

Q4

30

3030

30

2 hectare

2 hectare2 hectare

2 hectare

200/labor

200/labor200/labor

200/labor

1 day

operation

6000

60006000

6000

III. Transportation ofharvest (tractor) day 5000 2 days 10,000

Total 50,000


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Amount(php)

I. weedingQ1

Q2

Q3Q4

20

20

2020

2 hectare

2 hectare

2 hectare2 hectare

200/labor

200/labor

200/labor200/labor

1 day/Q

1 day/Q

1 day/Q1 day/Q

4,000

4,000

4,0004,000

II. Harvesting

*cost for labor

Q1

Q2Q3

Q4

30

3030

30

2 hectare

2 hectare2 hectare

2 hectare

200/labor

200/labor200/labor

200/labor

1 day

operation

6000

60006000

6000


harvest (tractor)

day 5000 2 days 10,000

Total 50,000


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Harvesting (revenue)

Operation in

harvestin

g

No.of

clum

s in2 ha.

4poles

/

culms

Price

/pol

e(php

)

Amount

(php)

1st

harvest

Q1 409 1,63

6

100 163,60

0

Q2 409 1,63

6

100 163,60

0

Q3 409 1,63

6

100 163,60

0

Q4 409 1,636 100 163,600

total 654,40

0

2nd

operation

Q1 409 1,636

100 163,600

Q2 409 1,636

100 163,600

Q3 409 1,636

100 163,600

Q4 409 1,63

6

100 163,60

0

total 654,400

Operation in

harvestin

g

No.of

clum

s in2 ha.

4poles

/

culms

Price

/pol

e(php

)

Amount

(php)

3rd

harvest

Q1 409 1,63

6

100 163,60

0

Q2 409 1,63

6

100 163,60

0

Q3 409 1,63

6

100 163,60

0

Q4 409 1,636 100 163,600

total 654,40

0

4rth

harvest

Q1 409 1,63

6

100 163,60

0

Q2 409 1,63

6

100 163,60

0

Q3 409 1,636

100 163,600

Q4 409 1,63

6

100 163,60

0

total 654,40

0

Year Total yield of bamboo(pole)/ year Php.

7 654,400

8 654,400

9 654,400

10 654,400


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Total cost and total revenue

Year Cost (php) Discounted

cost (20%)

Revenue (php) Discounted

cost (20%)

0 60,710 60,710

1 27,900 23,250

2 22,000 15,278

3 29,500 17,071

4 28,000 13,503

5 28,000 11,253

6 28,000 9,377

7 70,000 19,536 654,400 182,631

8 50,000 11,628 654,400 152,193

9 50,000 9,690 654,400 126,827

10 50,000 8,075 654,400 105,689Fix cost 41,925

Managerial

cost

83,849

total 325,145 567,340

Profit = revenuecost

=567,340325,145

=242,195

NPV= revenuecost

=567,340325,145

=242,195

BCR =

=

=1.74488

Return of investment =

=

x100

=.74488x100

=74%


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ORGANIZATIONAL FEASIBILITY

The project will be partnership with the WMSU, and with the help of WMSU; the

area will be allocate in proper location for the plantation and local resident of the area

will be encourage to participate with this activities. The Manager of this project will be

assign to get the permit for the project operation such as Mayor Permit, Business Permit

and all requirements to be need for the plantation and operation.

Operation of the project will be manage by the manager and with the help of the

clerk/collector the bamboo plantation operation will be manage correctly by following

the business plan to obtain the objectives of the feasibility.


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SOCIO-ECONOMIC IMPACTS

Bamboo plantation is a profitable in business. With this, the local resident will

encourage to be dealing with his activities that has an economical and environment

benefit to gain unlike with their usually livelihood activities (kaingin making) which has

a big impacts in the forest destruction. Bamboo plantation rising should be encouraged &

promoted due to their high value, productivity, uniformity of crop, choice of species linked to

peoples need and industrial need.

Productions of bamboo pole also give to the local communities to provide raw

materials to start a business like dealing with handicraft, furniture and other business

related to bamboo finish product.


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CONCLUSION AND RECOMMENDATION

The bamboo plantation is a short term production, within 4 to 7 years it is already

be harvest, but I rather go to 7 years to have a good matured quality of bamboo pole. The

cost of establishment from year 0 to year 10 was computed, the total cost will be php.

325,145.00 While the total revenue will be php. 567,340.00

The feasibility study result a profitable business in the future, base on the

computation of NPV and BCR, the NPV will be php. 242,195.00 And the BCR will be

1.74 which means that this business will profitable and the Return of Investment (ROI)

will be 74% which mean in 1-2 years cycle of harvesting the investment or the cost of the

project will return.

Bamboo plantation will be recommended on business based on the result of the

feasibility study.

western mindanao state university 2

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