CLARO M.

RECTO ACADEMY OF ADVANCED STUDIES

HEALTHY HARVEST MANGO FARM

Brgy. Bucal, Amadeo Cavite
Business Plan

A Business Plan
Submitted to the Faculty
Claro M. Recto Academy of Advanced Studies
Lyceum of the Philippines University Cavite

In Partial Fulfillment
of the Requirements for the Degree
Master in Business Administration

GIZELLE ANTOINETTE T. DANEZ

July 17, 2021

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I. Introductory Page

A. Name and address of business

The business shall be named as “Healthy Harvest Mango Farm”. The location of
the privately owned 2,400 Square-meter farm will be in Bucal, Amadeo Cavite.

Figure 1. Business Name and Logo

Figure 2. Location in Amadeo Cavite

B. Name(s) and address(es) of principal(s)

The business will be managed by its owner and a co-manager. With combined
efforts, they will hire further human resources to help them run their business.

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Owner: Ireneo P. Danez

Address: 122 Everlasting Street, Bagbag 2, Rosario Cavite

Co- Manager: Gizelle Antoinette Danez

Address: 122 Everlasting Street, Bagbag 2, Rosario Cavite

C. Floor Plan Layout

• Physical Store and Warehouse

Figure 3. Store and Warehouse Layout

D. Nature of business

The nature of business will be Agriculture Mango Fruit Farm.

II. Executive Summary

The business “Healthy Harvest Mango Farm” is a retail and wholesaler supplier
of quality and fresh ripe mango fruits which are grown organically. The crops will be
harvested from the 30 11-year-old Mango Trees planted on the 2,400 square meter farm
in Amadeo Cavite. Its target market will be consumers, wholesalers, distributors and
food processing businesses such as restaurants and the like. The direct competition of
the business will be the numerous fruit farms and suppliers in Cavite.

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Through the service, “Pick and Pay”, customers will be able to ensure the
freshness and quality of the mango fruit of their choice by picking it directly from the
farm. For those with bulk orders, delivery would also be an option and they would be
charged based on the distance accordingly.

The objectives of the farm business are as follows:

• To decrease our expenses and costs of operations by 20% every three years.
• To be able to establish and maintain good relationship with the customer.

For the Marketing strategy, the use of social media will be utilized. Updates and
start-ups are posted using Facebook, Twitter and Instagram. The business will also be
availing the Google Ads service for promotion.

III. Industry Analysis

A. Future outlook and trends

In terms of trends and future outlook, the technologies are being utilized for
advanced and effective farming. A farmer can now use many types of apps to monitor
crops each day. Less expensive drones deliver things where and when they are needed.
Agricultural drones are easier to fly and easier to understand the data they
provide. These are also drones that can respond well even in the event of changing
weather conditions. Extremely localized weather data is also being offered. Now farmers
can have even more detailed predictions about the state of the local weather in their
area. This helps them determine what should be planted in any given timeframe as well
as if crops should be harvested if weather conditions are about to change in their area.
Lightweight graphene is also being used to provide even more data about field
and soil conditions in any given area. This kind of “plant tattoo” can help scientists and
farmers work together to decide how best to use soils as well as breed up better plants
with higher yields and more able to survive even under less-than-ideal conditions.
(https://linchpinseo.com/trends-in-the-agriculture-industry/)

B. Analysis of competitors

Amadeo Cavite is one of the premier farming areas of the Philippines. This
creates an intensely competitive environment with a large number of industry
participants. Since almost all the produce is commodities, and large-scale buyers are
more consolidated than the farmers themselves, overall margins are small and rivalries
for wholesaler contracts are strong.

Ripe Carabao Mangoes which are ordered online (Lazada & Shopee) typically
costs Php 230- 250/ kilo. This would also take time to arrive on the customer.

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Figure 4. Weekly Price Trends of Mango in the Philippines

According to Tridge.com, for year 2021, the average price of the Mango sold in
the Philippines is 3.52 dollars which is equivalent to Php 175.00 per kilo.
(https://www.tridge.com/intelligences/mango/PH).

However, what sets our business apart is that we offer a “pick and pay” service
where the customers can come straight at the farm to choose the fruit themselves. This
would ensure that the goods that they will be purchasing are fresh and picked directly
from the farm. For those who are far from Amadeo, they may also be able to have the
goods delivered right on their doorstep within the day. They can provide the orders
through our Social Media platforms such as Facebook, Twitter, Instagram or E-mail
account. Another option is to give us a phone call in case internet connectivity is not
available on their area.

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C. Market segmentation

Our customers will belong to these groups:

• Domestic Buyers
Our primary customers will be the individuals and families living in the province
of Cavite. They are expected to purchase mango fruits from us.

• Restaurants and Markets

The secondary customers comprise restaurants that use fruit and vegetables to
prepare their products. Another will be Markets for them to resell the goods. They are
expected to buy from us in bulk.

• Fruit Processing Industries

The third target group comprises the food industries that use fruits to prepare
products. They will need our products for making fruit jams, canned fruit, salads, and
other items.

C. Industry and market forecasts

According to businessmirror.ph, The Department of Agriculture of the

Philippines forecasts a supply shortfall at about 434,840 tons in the next 79 days (2021).
Data presented by the DA showed it projected local vegetable production this year to
reach 1.691 million tons while imports are pegged at 20,000 million tons. The combined
amount would bring the country’s total vegetable supply to 1.711 million tons. However,
the Ministry estimated that total vegetable demand for 2021 would reach 2 million tons.
(https://www.freshplaza.com/article/9284461/philippines-will-have-a-79-day-
vegetable-supply-shortfall-in-2021/)

The DA data showed that the total net vegetable supply for the year could be at
1.574 million tons, which is sufficient to last for 286 days. This means that the country’s
vegetable supply deficit is at 434,840.62 million tons or equivalent to a 79-day shortfall.

IV. Description of Venture

A. Product(s)/ Product Differentiation

The product to be sold are Fresh Organic Ripe Carabao Mangoes.

To be able to provide the best quality of the mangoes, the company would
be selling pure organic Ripe Carabao mangoes wherein Neem oil cake and Mixed oil
cake are used as fertilizers. Those are considered as good organic manures which are
effective for pest repellant, increases the leaf age, growth and strengthens the root
of the tree.

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Figure 5. Neem Oil Cake as Organic Fertilizer for Mango Trees

Neem cakes are an excellent NPK fertilizers with a natural timed-release

capability. This “organic fertilizer” includes a wide range of vital plant nutrients,
including:

• Calcium (0.5% to 3.0%)

• Copper (4 ppm to 20 ppm)
• Iron (500 ppm to 1200 ppm)
• Magnesium (0.3% to 1.0%)
• Manganese (20 ppm to 60 ppm)
• Nitrogen (2.0% to 5.0%)
• Phosphorus (0.5% to 1.0%)
• Potassium (1.0% to 2.0%)
• Sulphur (0.2% to 3.0%)
• Zinc (15 ppm to 60 ppm)

(https://plantcaretoday.com/neem-cakes.html)

Mango trees need micronutrients such as calcium, magnesium, zinc,

copper and boron. Compost and manure provide a balanced range of
micronutrients as soil microorganisms break them down, so mulching twice a year,
in spring and fall, is the easiest method of applying them. (SFGATE website,
https://homeguides.sfgate.com/kind-organic-fertilizer-can-use-mango-trees-
90828.html)

B. Service(s)

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Customers are welcome to the farm to pick fresh ripe Mangoes. We would
also be offering delivery services within a certain area where customers are to pay
for the delivery fee. For those who are ordering online (Facebook, Twitter,
Instagram, E-mail) and via Phone call/ SMS, the payment method may be thru G-
cash/ BDO.

C. Size of business

The small business composes of 8 personnel including the owner and co-
manager.

D. Office equipment and personnel

The office equipment shall compose of the following:

• 2 Cellular Phones – 1 to use for taking orders from Social Media account to be
used by 1 staff and 1 to use for taking orders from Phone call/ SMS
• 2 Laptops – 1 to use by the Co-Manager & Owner and 1 to be used by the
Crew
• 1 Printer – For printing important document and promotions

The business will be managed by its owner and a co-manager. In total, 6 staffs
will be hired for the operation of the business.
The staff will be us follows:
• 2 Farmers
• 1 Delivery Services crew
• 1 Crews (for Packaging)
• 1 Cashier Crew (for Administration Job)
• 1 Marketing and Sales Crew (for Promotion and Taking Orders)

E. Background of entrepreneur(s)

The owner of Healthy Harvest Mango Farm, Ireneo, is a graduate of Bachelor of

Science in Industrial Education. He previously served as the Provincial Executive Senior
Police Officer in the province of Cavite. He has a strong passion and motivation on
planting. He purchased the land in Amadeo upon retiring as a policeman and started his
hobby of planting trees, fruits and vegetables in the farm.
The co-manager of Healthy Harvest Mango Farm, Gizelle, is a graduate of
Bachelor of Science in Electrical Engineering. She is working as a Technical Support
Engineer at Schneider Electric Philippines and pursuing Masters in Business
Administration. She is more passionate on business ventures.

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V. Operations Plan

A. Description of company’s operation

Healthy Harvest Mango Farm will be accepting orders through Social Media
accounts, Phone calls and Texts from 8AM up to 5PM. For pick and pay services, the farm
will also be open for the customers at the same time (8AM- 5PM).

B. Flow of orders for goods and/or services

Once the crew has received an order from the customer, he/ she will be creating
a list to be forwarded to the farmers for preparation. This preparation includes quality
check and cleaning of the crops. Once the crops have been checked and cleaned, this
would be forwarded to the crew for packaging and then handed over to the delivery
team.
Using the “Pick and pay” service, the customers are free to come to the farm to
be able to pick the crops. They will be providing the container (plastic)/ baskets (for large
orders) and once they have finalized their choices, they could come to the Cashier (crew)
for payment.

C. Technology utilization

The company will be utilizing social media as a tool for promotion and taking
orders. Through the use of chat services on Facebook (Messenger), Twitter, and
Instagram, customers will be able to place their orders.

VI. Marketing Plan

A. Pricing

Our prices are very reasonable and lies lower as that of our market competitors.
1 kilogram of Ripe Mango will cost Php 175.00.

B. Distribution

The products are to be sold to Retailers, Wholesalers and Directly to consumers.

The farm is open for everyone using the service, Pick and pay and Delivery services are
also available especially to wholesalers with bulk orders. Shipping fee are to be paid by
the customer and ranges depending on the distance where the products are to be
delivered.

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C. Promotion

The advertising of the start-up will be through Google Local ads service, Social
media (Facebook, Twitter, and Instagram), and newspaper. For the first 3 months of
operation, we will be offering 10% discounts to first time customers.

D. Product forecasts

According to themangofactory.com, The Philippine Golden carabao mango is a

biennial bearer. This means that by its nature it bears a good harvest every two years,
but may bear every year too if conditions are favorable such as the general health of the
tree and summer intensity of the weather condition. The regular season for mango is
flowering from November to February and harvest from March to June. This is during
the summer months.

The figure shown on the left side indicates

that the estimated production per Mango
tree in Kilos for 10-15 years of age will be
200 kilograms. This is also according to the
website, themangofactory.com.

Figure 5. Estimated production per Mango tree

This statistic below shows the revenue of the industry “processing and
preserving of fruits and vegetables in the Philippines from 2012 to 2017, with a forecast
to 2024. It is projected that the revenue of processing and preserving of fruit and
vegetables in the Philippines will amount to approximately 1.5 billion U.S. Dollars by
2024. (https://www.statista.com/forecasts/1221626/processing-and-preserving-of-
fruit-and-vegetables-revenue-in-the-philippines)

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Figure 7. Processing and preserving of fruits and vegetables in the Philippines from 2012 to 2017

E. Controls

The controls proposed are as follows:

• Monitor customer feedback
• Target Market Sales
• Budgeting and Monitoring Spending
• Market Share Milestones

VII. Organizational Plan

A. Form of ownership

Healthy Harvest Mango Farm’s form of ownership will be Sole- Proprietorship.

B. Roles and responsibilities of members of organization

The business will be managed by its owner and a co-manager. In total, 6 staffs
will be hired for the operation of the business.
The roles of the owner and co-manager will be as follows:
• Owner
- The owner is in- charge of preparing the financial reports that includes
budgeting. He will also be in- charged on hiring and mentoring the staffs.
- Defining job positions for recruitment and managing interviewing
process.

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• Co- Manager
- The co-manager will be in-charge on the day- to- day operation of the
business.
- Responsible for overseeing the smooth running of Human Resources
and administrative tasks for the organization
- Responsible for training, evaluation and assessment of workers
- Updates job knowledge by participating in educational opportunities;
reading professional publications; maintaining personal networks;
participating in professional organizations.

The staff will be as follows:

• Farmers (2)
We will be hiring a total of 2 farmers for the Mango plantation.
• Delivery Services (1)
1 Truck driver is to be hired to deliver the goods on the customer’s doorstep.
Professional Driver’s license is a requirement.
• Crews (for Packaging) (1)
2 Crews will be in- charged for packaging the orders of the customers before
being handed to the delivery team.

• Cashier Crew (for Administration Job) (1)

The crew in- charge of the Administration job will be in-charge on recording the
orders taken. All administrative jobs are to be taken care of this crew.

• Marketing & Sales Crew (for Promotion and Taking Orders) (1)

This crew will be responsible in taking the orders of the customers through the
Social Media platform. This crew will also be in-charge of promoting and updating
the sites. He/ She will also be in-charge of the promotion on newspaper ads and
Google Ads.

Healthy Harvest Mango farm organizational structure illustrated in Figure 8

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Owner Co-Manager

Marketing & Packaging Delivery

Cashier Farmers
Sales Crew Crew Crew

Figure 8. Organizational Structure of Healthy Harvest Mango Farm

VIII. Assessment of Risk

A. Evaluate weakness(es) of business

• Unpredictable production output due to climatic influence

Due to the different climate in the Philippines, the production of some crops
may be unpredictable.
• Difficulties to diversify species demand
Since the product that we offer is raw and common to the customers, it
would be difficult to find the uniqueness of our product from the competitors.
• Rejection of crops from (part of) the farmers
We could not prevent rejected crops from farms. This would be a part of
the loss.

B. New technologies

For possible use of new technologies, we may avail Grab’s service wherein
the Mangoes will be delivered right at their doorstep.

C. Contingency plans

• Unpredictable production output due to climatic influence

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It is recommended to research more on the background and proper care of

crops to be produced.
• Difficulties to diversify species demand
To standout, we would be providing fresh and crops with good quality and
focus more on providing an excellent customer service.
• Rejection of crops from (part of) the farmers
Educate and train farmers on the good methods of planting, this would be
able to increase its risk.

X. Financial Plan

A. Assumptions

• Product Need
• Sufficient Customer Base
• Profitable Business

According to research, The Fruit and Vegetable farm business is not

expected to suffer a decline in the coming years. It is because fruits are eaten
and used in many restaurants and food industries.

“We can only serve around 30% of the company’s banana requirement
for the export market each year, so even if we were able to expand production
by 10% every year, this would still be taken up by the export market,” According
to Larry Lacson, the Vice President of AgriNulture.

Pineapples are the second major export fruit with around 70% of output
shipped out each year, while 25% of annual mango production is also exported.
The pineapple market is particularly appealing for small farmers given the
generally higher return on investment for the fruit as the trees require less
maintenance, are less prone to disease, and hardier when it comes dealing with
natural disasters and inclement weather.
(https://oxfordbusinessgroup.com/analysis/fruitful-business-production-
volumes-and-exports-fruit-and-vegetables-continue-rise)

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B. Pro- forma income statement

2021 2022 2023

Sales Revenue 2,100,000 2,280,000 2,324,000
Cost of Sales (COGS) 0 0 10,000
Gross Profit 2,100,000 2,280,000 2,314,000
Operating Expenses
Rent of vans 60,000 67,500 73,000
Packaging 50,000 70,000 70,000
Electricity Bill 60,000 68,000 72,000
Advertising 12,000 10,000 10,000
Organic Fertilizers/ Farming 60,000 65,500 67,000
Salaries/ Wages 1,164,000 1,236,000 1,308,000
Total Operating Expenses 1,406,000 1,517,000 1,600,000
Net Income 694,000 763,000 714,000

Sales Projection:

• First year of Operation (2021)

Based on themangofactory.com, for the age of 10-15 years mango tree, it could bear up
to 200 kilograms of Mangoes. Since the Mango tree bears fruits twice a year, we will be
multiplying it to 2. Our pricing is Php 175.00 per Kilograms. The trees planted are 11 years of age.

Computation for the Sales revenue on the first year (2021):

Per tree: 200 kilograms x Php 175.00 = Php 35,000.00

Multiplied to total number of trees: Php 35,000 x 30 trees = Php 1,050,000.00
Bears twice a year: Php 1,050,000.00 x 2 = Php 2,100,000.00

• Second year of Operation (2022)

For the second year of operation, the selling price of the mango will be increased
into Php 190.00 per kilogram due to an improvement on the packaging. From the regular
carton box, this will be customized and will include the logo of the company. For the 1
kilo box, the purpose of the packaging may also be used for gifting. Including the logo on
the packaging will also serve its purpose for promotion and branding of the company.

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Proposed improvement for packaging is shown on the table below:

Box Type Packaging 2021 Packaging 2022

1 kg box

20 kg box

Computation for the Sales revenue on the second year (2022):

Per tree: 200 kilograms x Php 190.00 = Php 38,000.00

Multiplied to total number of trees: Php 38,000 x 30 trees = Php 1,140,000.00

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Bears twice a year: Php 1,140,000.00 x 2 = Php 2,280,000

• Third year of Operation (2023)

For the third year of operation, the selling price of the ripe mango will still be Php
190.00/ kilograms. However, to expand the business we will be introducing a product,
“Nanay Remedios’s Burong Mangga” where the 200 kilograms of mango (1 tree) will be
utilized for a new venture. The computation of sales is shown below:

Sales Ripe Mango:

200 kilograms x 29 trees = 5,800 x Php 190.00 = Php 1,102,000 x 2 = Php 2,204,000

Unripe Mango:
1 Tree = 200 kilograms x Php 300.00 (1 Burong Mangga = Php 100.00) x 2
= Php 120,000
Note: 1 kilogram = 3 pcs. Unripe mango

Total Sales for 2023= Php 2,324,000.00

Items Price per item at cost

1 pc. Unripe Mango 23
Jar 20
Rock Salt (1 kg) 1
Water 3
Garlic 3
Cost of Goods Sold 50

For manpower, we will be maximizing the Marketing Crew and 2 farmers for
the production of the Burong Mangga.

C. Sources and applications of funds

Sources of Funds
Personal Funds of Founders 2,500,000
(Owner and Co-manager combined)
Net Income (loss) from operations (1,406,000)
Add depreciation 15,000
Total Funds provided 1,109,000
Application of funds
Construction of Warehouse & Physical Store 1,000,000
Purchase of equipment 12,000
Inventory 5000
Total funds expended 1,017,000
Net increase in working capital 92,000

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