Feasibility study of establishing a virus-free shallot planting material propagation facility in Sitio Tanibong, Abar 1st, San Jose City, Nueva Ecija (Philippines)
2009
Durante, R.C. | Madamba, J.A. | Pateña, L. | Mojica, L. | Tan, R., Philippines Univ. Los Baños, College, Laguna (Philippines). Coll. of Agriculture
Shallot is the leading exported commodity of the Philippines. However, about 70% of the harvests of farmers are lost due to diseases and providing virus-free planting materials can address such loss. This study aimed to determine the feasibility of establishing a virus-free shallot planting material propagation facility in San Jose City, Nueva Ecija where a tissue culture facility will be set up to provide clean planting materials. It evaluated the market, technical, organizational and financial viability of the proposed business. End output in 5,631 kilos of generation three Tanduyong shallot bulbs to be sold to farmers, exporters, academic and government institutions at PhP 200.00 per kilo. It will target 40% of planting inputs required by Nueva Ecija farmers as well as 10% of the inputs used by Ilocos farmers. A total of PhP 4,737,407.90 is needed as the initial investment of the business to be financed by a private foundation. Results showed that the proposed business need not be pursued because of poor market demand which is less than the break-even point of 13,778 kilos of shallot bulbs, lengthy and expensive production process; intensive labor requirements and negative financial analysis results with a negative net present value of PhP 2,699,541.63 due to financial losses. Increasing the price to PhP 410 per kilo will make the proposed business viable, however,farmers will only pay PhP 100 per kilo. It is recommended that strategies be undertaken to enhance business feasibility through tissue cultured crop diversification, market orientation of developed technology and technology franchising.
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