I.

Summary of the Project

RC Cassava Production Company will be a start-up business which will involve

cassava production and processing into flour and chip using modern technology. This is
designed to meet the need for flour substitute to bakery industries and the increasing demand
for cassava chips and granules for industrial purposes. The business will be strategically
located close to a farming community in Brgy. 01, Llorente, Eastern Samar. With this, the
business will be close to the source of raw materials thereby guarantees lower product cost
and which may in turn supports the local economy and the environment.
The business envisions being the leading provider of high quality cassava products
within the province of Eastern Samar. RC Cassava Production Company will gain competitive
advantage since it will be the first large-scale cassava producer and processor within the
province. Another advantage also is that the business will exploit high capacity and modern
processing technology in its production process to meet the growing demand.

The primary target markets of the business are the buyers/processors of cassava
namely: San Miguel Foods Inc. (B-MEG), growers and processors association or cooperatives,
bakeshop owners/confectioneries, delicacies centres, and grocery shops or owners of
supermarket. The secondary target markets of the business are the individuals and consumers
who prefers to consume cassava as food, health-conscious individuals and native delicacies
makers or bakers.

1 A Feasibility
The business will be legally formed as soleStudy: RC Cassava
proprietorship withProduction Company
the proponent as the
proprietor and the manager as well. The project cost of the business is Php 15 Million inclusive
of the cost for the acquisition of land, building structure, manufacturing plant equipment and
others.

Finally, a 5 years’ projection of sales, income statement, statement of cash flow and
balance sheet has been performed to evaluate the financial position of the company for 5
years. The thorough and comprehensive financial projections and other key indicators show
that the business is a feasible and practical.

II. General information

 a. Management of the project
 Project Scope & Deliverables
Vision: To become the No. 1 leading local producer and supplier of reliable and quality
assured cassava products within Eastern Samar, while expanding throughout the Philippines
and even internationally.
Mission: Innovative production of high-quality cassava products at affordable prices.
Business Objectives:
1. To achieve Php 75,937,500 annual sales in the next 5 years.
2. To increase market share by 1% annually.
3. To receive an increasing return on investment.
4. To increase production by 5% annually.
5. To create employment within the business environment.
6. To achieve market leadership position in innovation, quality, and pricing of
cassava products.

 Project Proponent/s
The project proponent of RC Cassava Production Company is Rosario B. Cada who
will serve as the General Manager of this project.

2 b. Status & time table A Feasibility Study: RC Cassava Production Company

Category Activity/Project/ Expected Budgetary Person Time-

Program Output/Indicator Requirements Responsible Frame
Organizing/ 1. Acquire Lot Lot registered in the 1,000,000.00 GM Jan
Preparatory name of the 2022
Stage proponent

2. Secure Approved 5,000.00 GM Jan

Mayors/building Mayors/building 2022
permit permit

Implementation 1. Construction of Building & facilities 4,000,000.00 GM Feb-April

phase the building constructed 2022

2. Acquisition of Farm A 10 hectare- 500,000.00 GM Feb-

Implements/ Raw cassava plantation March
Materials, Commence established 2022
the Cassava
Plantation, Hiring
farmers/laborers

3. Acquisition of Machineries & 6,500,000.00 GM May 2022

Machineries and Equipment delivered
Equipment

4. Hiring of Plant 2 personnel 20,000.00 GM May

Supervisor & Machine appointed & oriented 2022
 Operator with policies

5. Training of Plant Supervisor/Farm 3,080.00/mo GM/Trainer May 2022

Supervisor/Manager & Officer know the
Machine Operator process and
technology of SMC

300 farmers w/ at 100,000.00 GM/Plant May 2022

6. Farm Survey for least ½ ha farm land Supervisor
prospect suppliers of
raw materials
6 personnel GM/Plant May 2022
7.Hiring of other appointed and Supervisor
personnel oriented with policies

2,000,000.00 GM and Staff Jun-

Dec.2022
8. Start of operation

III. Market Study

 Demand and Supply Analysis
In the Philippines, cassava is generally processed into food items such as dried chips and
native pastries like suman, bibingka and sago. Starch from processed cassava is used in biscuit
making or sweetening agent in confectionaries. Cassava is used mainly as food, feeds or fuel. It can
3 also be used as raw materials for pharmaceuticals and Study:
A Feasibility industrial
RC products and applications.
Cassava Production CompanyBy-
products of cassava, from the stems can also be used as particle boards.
Livestock feeds manufactured from cassava serve as substitute for feed grains in compounded
animal rations. Raw or boiled roots are mixed into a mash with protein concentrates such as maize,
sorghum, groundnut or oil-palm kernel meals and mineral salts for livestock feeding. The dried peels of
cassava roots are fed to sheep and goats. Cassava leaf meal contains 18-25% protein and is also a
good livestock feed not only for poultry but also for other livestock.
The root of cassava can be used to produce ethanol that is used as biofuel. Cassava is one of
the richest fermentable substances to produce alcohol. The fresh roots contain about 30 percent starch
and 5 percent sugars, and the dried roots contain about 80 percent fermentable substance which is a
good source of alcohol.
Cassava has many industrial uses such as in the manufacture of pharmaceutical products,
paper, adhesive and textiles. Particle board can be made from cassava stalks by cutting them into
small sections and mixing them with certain resins.
There is a high demand for cassava granules for feeds manufacturing as substitute to corn.
The San Miguel Foods Incorporated (SMFI) projected a demand for cassava tuber is 6,000,000 metric
tons. The 2019 actual cassava volume of production amounted to 2,630,800 metric tons, giving a
demand gap of 3,369,200 metric tons. (PSA, 2020)

 Demand/Supply gap
 There is a high demand for cassava granules for feeds manufacturing as substitute to corn.
The San Miguel Foods Incorporated (SMFI) projected a demand for cassava tuber is 6,000,000 metric
tons. The 2019 actual cassava volume of production amounted to 2,630,800 metric tons, giving a
demand gap of 3,369,200 metric tons. (PSA, 2020)
 Market Share Projection
Table 1. Cassava Production by Province, Eastern Visayas: 2013-2017(in Metric
Tons)

Based on the above available data, Eastern Samar ranked second in terms of volume of
cassava production within the region with 16.52% market share.
In Region 8, the 2019 actual cassava volume of production amounted to 83,411.97 metric tons
with 3.2 market share percentage. This is already included in the actual cassava volume of production
amounted to 2,630,800 metric tons produced in the country but still falls short of the required demand
4 of cassava in the country. With this, the proponent of the RC
A Feasibility Cassava
Study: Production
RC Cassava CompanyCompany
Production identified
this opportunity to venture into this kind of business and be able to position itself in the cassava
industry/market.
Considering the demand and supply gap, the business is projecting to produce 1,000 metric
tons or 100,000 kgs of cassava. This will capture 1.2% market shares in the cassava industry in the
region.
Furthermore, the proponent conducted survey as to the market feasibility of the project or
demand of the product among the target market. Result shows that there is a positive and promising
feedback.

 5 Years Sales Forecast

 The projected demand of cassava for the next five years (2021-2025) is
projected to increase with yearly increment of one MMT.

5 YEARS PROJECTED SALES

YEAR 2021 YEAR 2022 YEAR 2023 YEAR 2024 YEAR 2025
75937500

50625000

33750000

22500000
YEAR 2025
15000000 YEAR 2024

YEAR 2023

PROJECTED YEAR 2022

SALES
YEAR 2021

5 A Feasibility Study: RC Cassava Production Company

 Market Description & Size
Cassava is one of the Philippines' main crops and contributes a lot to the Philippines' economy,
with 217,000 Filipino farmers relying on cassava production. Cassava is one of the most important
agricultural crops in the Philippines. It has a great potential for business ventures because of its many
uses. It can be used as food and ingredient for feeds. It has also numerous industrial uses including
starch, flour and bio-ethanol. The demand of cassava for animal feeds and other industrial uses have
substantially increased in the country.
Due to cassava is drought tolerance and requires low investment as well as the increased
demand for cassava as raw materials, the cassava planting area in the Philippines has gradually
increased in recent years. According to statistics, the output of cassava in the Philippines in 2015 was
2.71 million tons, an increase of 6.84% over the previous year. The main producing area of cassava in
the Philippines is in Mindanao. In 2015, 1.5 million tons of cassava was produced in the area,
accounting for 55.6% of the total output.
The average volume of cassava production in the past 10 years (1989-1999) was close to 2.0
million metric tons. Of this, 35% was used for the manufacture of starch, 50% for food and 5-15% for
feed. The largest percentage is utilized for food, especially in Mindanao (southern part of the country),
where the people utilize cassava as their staple food. Utilization of cassava as a feedstuff is a growing
industry; hence, there is potential growth in this sector.
However, for cassava growers, it is difficult to make profits only by selling cassavas. Cassava is
not resistant to storage which is easy to rot within 48 hours, so more and more people are willing to
carry out cassava processing (value added) and sales. Cassava root can be processed into various
 products and can replace various related raw materials. But in recent years, cassava flour production in
the Philippines has attracted more and more people's attention because cassava flour is considered as
a good wheat flour substitute.
According to a study conducted by the Philippine Root Crop Research and Training Center in
collaboration with the Department of Agricultural Chemistry and Food Science, many bakeries and
other foods can use cassava flour to practically replace wheat flour without affecting their quality. To
reduce the Philippines' high import dependence on wheat, the Philippine government has implemented
a decree aimed at encouraging and promoting the processing and consumption of cassava flour.
Government support has prompted more investors to choose cassava flour production in the
Philippines. Good quality cassava flour can not only replace wheat flour but also meet export demand,
so the prospect of processing cassava flour in the Philippines is broad.

 Target Market
The primary target markets of the business are the buyers/processors of cassava namely: San
Miguel Foods Inc. (B-MEG), growers and processors association or cooperatives, bakeshop
owners/confectioneries, delicacies centres, and grocery shops or owners of supermarket.
The secondary target markets of the business are the individuals and consumers who prefers
to consume cassava as food, health-conscious individuals and native delicacies makers or bakers.

 Product Positioning
6 RC Cassava Production Company willA Feasibility Study:
position itself in RC
the Cassava
industry Production Company
as a company which
produces reliable, accessible, high quality cassava products at an affordable price.

 Competitors
The direct competitor RC Cassava Production and Processing Company is the Balangkayan
Multi-Purpose Cooperative located at Balangkayan, Eastern Samar. The cooperative also produces
cassava granules and chips which are sold to cassava buyers and processors like San Miguel
Corporation.
The indirect competitors of the business are the local cassava growers or farmers selling their
produce to the market and different buyers. Also, stores and supermarkets selling cassava flours and
starch are among the competitors of the business.

 Competitive Advantages
1. Be the first into the market place in Eastern Samar with this product offering
2. Closeness to supply/availability of raw material guarantees lower product costs
2. Closeness to rural area and market reduces the final cost of products
3. High capacity and modern processing technology
 Marketing Plan (Marketing Mix Strategies-4Ps)
 Product
The company will specialize in the production of cassava flour and cassava chips/granules.

1. RC Cassava Flour/Starch
RC Cassava flour is gluten-free flour which is very mild and neutral in flavour.
These qualities, along with the fact that it can be replaced on a 1:1 basis with wheat
flour in many recipes, make cassava flour preferred flour for gluten-free, grain-free
baking and cooking.

7 A Feasibility Study: RC Cassava Production Company

Ingredients: 100% cassava (yuca root)

Brand: RC
Weight: 50 kg.
Allergen Information: Gluten Free, Soy Free, Tree Nut Free, Dairy Free
Diet Type: Gluten Free
About the Product:
Made With 100% Cassava – RC’s Cassava Flour is a single-ingredient, plant-
based baking flour made from cassava. It's grain-free, gluten-free, nut-free and perfect
for paleo or vegan lifestyles.
Free Of Top 8 Allergens - RC’s Cassava Flour is made from cassava, also
known as yuca, a tuberous root veg. naturally free of the most common allergens:
grain, gluten, dairy, eggs, soy & tree nuts so the whole family can enjoy, without worry.
From Cassava To Flour - Cassava has been a staple food around the world for
centuries. What sets us apart from tapioca is the way we dry & grind this sustainable
 root vegetable using the whole root, maintaining the perfect starch to fiber ratio to
mimic all-purpose flour
1:1 Wheat Flour Substitute - Recreate grain-free versions of nearly any recipe
with our cassava flour. It's mild flavor & light texture make it an easy 1:1 substitute by
weight for all-purpose wheat flour or simply reduce volume by 25%.
The RC's Way - RC’s Cassava Flour makes going grain-free easy and the new
baking mixes make it even easier. Together they bring comfort food back to the table
for all and help usher in a new era where allergy friendly foods taste just as good as
their traditional counterparts.

2. Cassava Chips and Granules

Cassava chips are white or near white in color, free from extraneous matter,
molds, insect infestation and damage, and possess no peculiar odors.
Dried cassava chips and granules shall be packed in polypropylene (PP)
sacks or any suitable packaging materials which are safe, clean and suitable for their
intended use; and should not impart any toxic substance or undesirable odor or flavor
to the product.

8  Price A Feasibility Study: RC Cassava Production Company

1. RC Cassava Flour/Starch- Php 60.00/kilo or Php 3,000.00/sack

2. Cassava Chips and Granules- Php 10.00/kilo
The pricing strategy used includes the value-based strategy in combination
with the cost based strategy.

 Place
The business will be strategically located at Brgy.01, Llorente Eastern Samar.
It will act as producer at the same as traders or distributor to save on operational costs.
The business will sell directly to customers especially to nearby towns and to its target
markets. But, the business may opt to look for prospective distributors or dealers
especially to far-flung municipalities or areas in Eastern Samar. The business will tap
or make partnership with farmer’s cooperatives and local market to serve as
distribution channels also. The business also is open to contract with sales agents on
commission basis.
 Promotion
RC Cassava Production and Processing Company will adopt the following sales and
marketing approach;
 - Introduce the product or the business by sending introductory letters, flyers,
brochures to the target markets, farmers and other stakeholders in Llorente, Eastern
Samar and other municipalities in Eastern Samar
- Install billboards and tarpaulins on strategic locations all around Eastern
Samar
- Engage in road show in targeted farm communities from time to time to sell the
products
- Advertise in community based newspapers, print ads such as flyers,
tarpaulins, brochures and radio stations
- Leverage on the online and digital platform to promote the product such as
Facebook, Instagram, etc.
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
- Visit and immerse to the different bakeries/bakeshops, groceries/supermarket,
cassava buyers/processors, demo farms and other farmers associations to conduct
demo and awareness on the benefits of the product
- Conduct sponsorship to relevant community based programs
- Tie-up with potential distributors and partners such as farmers cooperatives,
9 associations, NGOs, enterprisesA and even government
Feasibility institutions
Study: RC Cassava such as the
Production DA, DTI
Company
and others.
 ACTIVITIES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

1. Pre-operational Activities
-Tarpaulin and print ads posting in
different areas of the province, 10,000.00 - - - -
install signage of the business name
-printing & giving of flyers,
3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
brochures and other print ads
2. Engage in road show in targeted
farm communities, bakeshops, 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
processors, etc.
3. Advertise in radio station 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
4. Leverage on the online and
digital platform to promote the
product such as social media 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
(Facebook, Instagram), website
creation,etc.
5. Visit and immerse to the different
demo farms, groceries, bakeshops,
processors and other farmers
5,000.00 15,000.00 15,000.00 15,000.00 15,000.00
associations to conduct demo and
awareness on the benefits of the
product
6. Conduct sponsorship to relevant
10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
10 community based programs A Feasibility Study: RC Cassava Production Company
7. Giving freebies for loyal clients
7,000.00 7,000.00 7,000.00 7,000.00 7,000.00
and with top sales
TOTAL 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00

IV. Technical/Operational Study

 Technical Specifications of the product/service

The cassava granules are fibrous with only 3% dust and don’t have oil content which
makes it not easier rot if watered.

 Raw materials and source of raw materials

There are two kinds of cassava varieties grown by RC Cassava Production and
Processing Company: KU50 and Golden Yellow. Both varieties are for industrial
purposes. The KU50 is for feeds while Golden Yellow is for the flour and starch
 processing. It takes one year to plant the KU50 variety, while it only takes seven
months for the Golden Yellow variety to be fully grown for food consumption.

The raw materials will be mainly sourced from the in-house cassava plantation or
production of the business. Also, the business will also contract with the local cassava
farmers or growers for the raw materials.

 Production Process (Process Flow)

11 A Feasibility Study: RC Cassava Production Company

1. Cassava washing and peeling machine

Cassava flour is processed through a series of steps. Because the high

impurity content will affect the quality of cassava flour, there is a need to use the
cassava flour processing machine for peeling and washing to remove the cassava
surface soil and skin. Generally, the cassava washing machine and cassava peeling
machine should work together for getting high quality cassava flour in cassava flour
processing plant.

2. Cassava grinding machine

The cassava flour grinding process of cassava flour processing machine is not
same as cassava starch grinding process. The crushed material is generally not
filtered, to prevent loss of nutrients.

3. Cassava flour dehydration:

To getting dry cassava flour, crushed cassava slurry needs dewatering first.
The cassava flour processing machine for dewatering has centrifugal dewater machine
( small-scale cassava flour processing machine) and scraper centrifuge( medium or
 large capacity cassava flour processing machine).The dewatering machine is used to
reduce the water content of material and improve the drying efficiency and quality.

4. Cassava flour drying and packing:

After the previous step, we get the wet cassava flour, it need to be dried by the
cassava flour drying machine. Cassava flour drying process is similar to cassava
starch drying, it need flash dryer. The hot air contact with wet cassava flour and take
away the water inside of wet cassava flour quickly, After drying by cassava flour
processing machine, the dry cassava flour will go through screening, the required
fineness cassava flour can be directly packaged, the cassava flour below standard will
be crushed again.

 Plant size, location (include location map)

RC Cassava Production Company will be strategically located at Brgy. 01,
Llorente, Eastern Samar. We have been able to acquire a 10 hectare parcel of
agricultural land. The location is ideal because aside from being close to farming
community and root crop growers, the land is along the road which makes it accessible
for bringing in raw materials and packaging, and sending out products. The location is
also free from environmental pollution and any industrial activities that can pose a
serious threat to contaminating food. Also, the area is not prone to flooding and has a
good supply or potable water.

12 A Feasibility Study: RC Cassava Production Company

The business will have the following layout:

N

Boblangan

Provincial Road to Antipolo

Mini Office/Reception Room

Raw Material Plant and Solar Motor Pool

Drier

Finished

Product Storage

Main Production Workshop Room / Processing Area

13 A Feasibility Study: RC Cassava Production Company

 Structures
 Production Facilities and Equipment (Include Plant Layout)
Production Unit Unit Capacity Unit Cost
Equipment
Cassava Garter 1 3.5 tons/hour 380,000.00
Pulverizer 1 1 ton/hour 380,000.00
Hammer Mill 1 ½ ton/hour 375,000.00
Hydraulic Press 1 300 kg/batch 375,000.00
Starch Extractor 1 ½ ton/hour 300,000.00
Sedimentation 1 500L/Batch 900,000.00
Tanks
Granulator 1 ½ ton/hour 19,000.00
Flash Dryer 1 1 ton/day 2,850,000.00
Packaging Machine 1 75,000.00
Weighing Machine 2 150,000.00
Cassava Chipper 1 1 ton/hour 250,000.00
  Production Management

14 To ensure that the quality of theAproduct is maintained

Feasibility Study: RC in every batch,
Cassava it is ensured
Production Companythat
there will be a well-trained and technically qualified Labourers, Machine Operators under the
supervision of the Plant Manager who himself takes charge of production.
Equipment will be designed to dry, fry, cool or store food to achieve the required food
temperature as rapidly as necessary in the interests of food safety and suitability, and to
maintain them effectively.
Equipment is designed to allow temperatures to be monitored and controlled. Where
necessary, equipment should have effective means of controlling and monitoring humidity,
airflow, and other characteristics likely to have a detrimental effect on the safety and suitability
of food.

 Production Cost per year based on projected sales

o Direct Materials
o Indirect Labor
o Overhead Cost (Supplies, Power, Fuel, Depreciation, etc.)
o Production Cost Per Unit
 V. Management Study
 Legal Form of Business
The legal form of the business will be Sole Proprietorship.

 Organization Structure/Org.Chart
General
Manager

Plant Supervisor Bookkeeper

Machine Driver/Tractor
Sales Clerk
Operator Operator

Helper/Laborer Helper/Laborer

15 A Feasibility Study: RC Cassava Production Company

 Personnel Requirement

 Job Description
1. The General Manager
a) General supervision of the company and make plant supervisor directly responsible to him.
b) See to it that policies and rules and regulations applicable to the business are implemented.
c) Make sure that the programs; activities are implemented according to plan and targets.

2. The Plant Supervisor/Manager

The Plant Supervisor or Manager will be responsible of the following:

a) Responsible for the day to day successful operation of the entire production process;
b) See to it that activities as embodied in the action plan are implemented, and goals and targets
are achieved;
c) Responsible for overseeing the smooth running of the plant and the production process;
d) Ensure the quality of output and products that are to be produced.
e) Maps out strategy that will lead to efficiency amongst workers in the plant;
f) Responsible for training, evaluation and assessment of plant workers;
g) Ensure that the steady flow of both raw materials to the plant and easy flow of finished products
through wholesale distributors to the market;
h) Ensures operation of equipment by completing preventive maintenance requirements;
i) Ensures that the plant meets the expected safety and health standard at all times.
 j) Perform all other duties that the general manager deemed necessary for the operation of
business.
The Plant Supervisor/Manager is directly responsible and accountable to the general manager
of the company. He/She is the centre and the leader of the production team, hence must possess at
least the following minimum competencies:
a) Graduate or has a four year college education from a reputable school for a degree
related to management and agriculture
b) He must have at least 3 years’ experience in managing and supervision of at least five
employees
c) He must possess good reputation and must demonstrate moral ascendancy and
exceptional leadership and management skills needed for the business.
d) He must be physically fit and have the passion to supervise employees in the field and
even work with the farmer in the field if necessary.
e) Must have trainings relevant to the job.

3. Bookkeeper
The Bookkeeper will serve as the secretary or record keeper of the business and has the
following functions:
a) Responsible for the recording of all the transactions of the program. He will provide log
book for all documents, received and transmitted
16 b) Maintain control logbook of Adisbursement
Feasibility Study: RC Cassava
vouchers, Production
payrolls, Company
and journal entry
vouchers.
c) Maintain ledgers of all accounts and records of its supporting documents.
d) Prepare monthly financial and operational reports.
e) Systematically file all vouchers and promissory notes and other pertinent documents
pertaining to the operation of the business.
f) Serve as secretary of the General Manager, take minutes for all unit meetings and
g) Perform all other duties and functions deemed necessary by the General Manager.
He/She is directly responsible to the General Manager.The clerk or bookkeeper must possess
at least the following minimum qualifications:
a) College graduate or has four years college education relevant to the job,
preferably on accounting and other related courses.
b) Must be of good moral character and demonstrate willingness to work under
pressure and willing to do overtime to beat deadline for the preparation of reports or
when needed.
c) He must have experience relevant to the job.
d) Must have trainings relevant to the job.
e) He must be physically and mentally fit.
 4. Sales Clerk
The following are the duties and responsibilities of the Sales/Loan Clerk:
a) Responsible in cashiering of the store and assisting clients for their needs.
b) He must arrange delivery of supplies to clients if any.
c) He will be responsible of encoding purchased inventory,
d) Make requisition of merchandise on stocks,
e) He must record sales on the POS and issue receipts or invoice thereof,
f) Assist in the monthly inventory taking of merchandise
g) Assist in the maintenance of stock card for all the merchandise of the store.
h) He must remit daily cash collection to the General Manager and make the
daily sales reports to the bookkeeper and General Manager in support for his
remittance.
i) Perform all other function as deemed necessary by the supervisor or the
manager.
In the absence of the bookkeeper and upon direction of the supervisor or the manager, he
17 must take charge of the function of the clerkA Feasibility
or the bookkeeper.
Study: RC He is directly
Cassava responsible
Production Companyand
accountable to the program supervisor.
The sales or loan clerk must possess at least the following minimum qualifications:
a) At least fourth year college for a course relevant to the job.
b) Must be of good moral character and demonstrate willingness to work under
pressure and willing to do overtime to beat deadline for the preparation of reports when
needed.
c) He must have experience relevant to the job,
d) Must have trainings relevant to the job.
e) He must be physically and mentally fit.

5. Helper/Laborer
The functions of the helper/laborer of the business are the following:
a) The helper-laborer will be responsible in assisting the machine operator in the
production process and will serve as the general helper in the production plant;
b) In-charge of cleaning the premises, arranging stocks, planting cassava and
packing of merchandise,
c) Responsible of recording of inventory in the stock card and assist in the
monthly inventory taking,
d) Assist the truck/tractor driver in delivering merchandise or finished products
and
 e) Perform all other function as deemed necessary by the plant supervisor or the
manager.

In the absence of the sales clerk and upon direction of the plant supervisor/manager, he must
take charge of the function of the sales clerk. He is directly responsible and accountable to the plant
supervisor/manager.
The helper/laborer must possess at least the following minimum requirements:
a) Must at least be able to read and write.
b) Must be of good moral character and demonstrate willingness to work under
pressure and willing to do overtime to beat deadline for the preparation of reports when
needed.
c) He must be physically and mentally fit for hard labor.

6. Machine operator
The following are the duties and responsibilities of the Machine operator:
a) The machine operator is the one responsible for the maintenance and
operation of the machines used in the production process.
c) See to it that machine is always in good condition and properly maintained.
Make necessary check-up of its condition daily and recommend repair and request
purchase of parts if necessary.
18 d) See to it that the area AisFeasibility
clean, andStudy:
that the
RCmachine
CassavaisProduction
cared, protected
Companyand
safeguarded.
e) In-charge in the supervision of the drying of the farm products and must see to
it that the moisture content desired is achieved.
f) Take charge of the supervision of the proper handling of farm products
including its storage as well as its disposition and delivery to buyer and
g) Perform all other function as deemed necessary by the plant
supervisor/manager.

He is directly responsible to the plant supervisor/manager. The machine operator must possess
at least the following minimum requirements:
a) The machine operator must at least college level or graduate in vocational
course relevant to the job.
b) Must be of good moral character.
c) Physically fit for hard labor and demonstrate willingness to work under
pressure and willing to do overtime when needed.
 7. Tractor Operator/Delivery Driver

The following are the duties and responsibilities of the Tractor Operator/Delivery
Driver:
a) The tractor operator is the one responsible for the maintenance and operation
of the tractor including its field operation.
b) He will serve as the operator of the tractor and other farm implements and
machineries.
c) Transports finished goods and raw materials over land to and from
manufacturing plants or retail and distribution centers.
d) Make necessary checkup of the condition of the vehicles daily and recommend
repair and request purchase of parts if necessary.
e) See to it that the vehicles are cared, protected and safeguarded.
f) He will report to the production operation and assist the machine operator in
his functions during period of no farm work.
g) Perform all other function as deemed necessary by the plant
supervisor/manager.
He is directly responsible to the plant supervisor/manager. The Machine/Tractor Operator must
possess at least the following minimum requirements:
a) Must be at least high school and or vocational course graduate relevant to the
job
b) He must possess skills and license in driving or experience as tractor
19 operator/driver. A Feasibility Study: RC Cassava Production Company
c) Must be of good moral character, and demonstrate willingness to work under
pressure and willing to do overtime when needed.
d) Physically fit for hard labor

 Available Compensation

Position Salary/Wage
1. General Manager Php 15,000.00/month
2. Plant Manager/Supervisor Php 10,000.00/month
3. Bookkeeper Php 8,000.00/month
4. Sales Clerk Php 300.00/day
5. Machine Operator Php 300.00/day
6. Tractor Operator/Driver Php 300.00/day
7. Helper/Laborer Php 250.00/day

 Hiring & Recruitment System

Recruitment and Selection Policy
RC Cassava Production and Processing Company shall adopt a systematic
recruitment and selection process in order to appoint employees that will best fit to the position
needed by the company.
 Hiring of employees for RC Cassava Production and Processing Company shall be in
accordance with the organizational structure, functional structure, yearly workforce plan and
budget.

Recruitment and selection shall be based strictly on merit. It must be based upon the
person’s ability or skills to perform the job, education, and experience. It is open to all resident
citizens of the Philippines and resident alien with work permit as prescribed by law, male or
female from age 18 to 60 years old, including persons with physical handicaps. Race, color,
religion, sex, regional origins are not considered as basis for the hiring of the said employees.

Following are the guidelines in hiring and recruitment:

1. When vacancy occurs, the Plant Manager shall review work allocations, job description
and selection criteria, subject to the approval of the General Manager.
2. The position will be advertised first to the internal employees. In case there is no
qualified applicant, it shall be opened to the general public.
3. The applicants shall submit his/her Pre-employment requirements as follows:
• Resume or Bio Data with picture,
• Application Letter
• Letter of Appreciation,
• Certificate of Attendance to seminar
• Medical/Physical Certificate,
• Police Clearance,
• NBI clearance,
20 • Diploma and TranscriptAofFeasibility
Records Study: RC Cassava Production Company
• Clearance from previous employment if applicable
• Certificate of Good moral
•Other documents that the HR Officer deemed important in verifying the ability, skills,
knowledge, experience and character of the applicant
4. The applicant shall be required to undergo physical/medical examination and to secure
Police, NBI and Barangay Clearance.
5. Examination to determine IQ and EQ level of the applicant will be administered to help
determine suitability of applicant for a particular job.
6. The Selection Committee and the manager shall determine minimum selection criteria
that shall be the basis of the selection of the applicants, document the selection process and
report result of the selection process. These documents shall be part of his/her 201 files.
All newly hired employees shall receive a full orientation on or before their first day of
work. Likewise, he/she signs the Employment Contract and fills out all accounting and
administrative related forms (e.g. SSS, Phil Health, PAG-IBIG and BIR forms).
The Direct supervisory shall conduct the Preliminary Orientation that includes the
following:
 Office tour
 Organizational chart & structure
 Background of the company
 HR and administrative forms and their uses, policies, rules and procedures
including sanctions for non-compliance
 Compensation and benefits
 Company’s values orientation
 Orientation Proper shall be conducted by the immediate Supervisor/Section head
concerned. He/she shall brief the new employee on:
 Names and functions of the co-workers in the department
 Details of the new employee’s duties and responsibilities
 Details of performance targets and standards
The immediate Supervisor shall conduct a follow-up after one (1) week to answer
questions and confirm probationary period and performance standards.

VI. Financial Study

 Total Project Cost
The total project cost is around Php 15 million. This amount includes pre-operating
expenses, fixed assets and working capital.

 Initial Capital Requirement

RC CASSAVA PRODUCTION COMPANY
ESTIMATED PROJECTED COST AND EXPENSES
GOOD FOR 500,000 KILOS FOR CY 2021

Raw Materials Unit Quantity Unit Cost TOTAL

21 Cassava root/crop kilo A Feasibility Study:

500,000 10.00 RC Cassava Production Company
5,000,000.00

Total Raw Materials 10.00 5,000,000.00

Production Cost
Direct Labor 4 workers with 1,248 days of work 1,372,800.00
-
Total Production Cost 1,372,800.00

Total Raw Materials and Production Cost 6,372,800.00

Factory Overhead Cost

Advertising and Packaging 50,000.00
Light and Water-Factory 120,000.00
Fuel and Oil-Factory 80,000.00
Telecommunication (Internet and Telephone) Factory 12,000.00
Total Factory Overhead Cost 262,000.00

Administrative Cost
Salaries and Wages 1,170,000.00
SSS Contribution 120,000.00
Light and Water-Office 60,000.00
Sales and Marketing 50,000.00
Office Supplies Expenses 12,000.00
Interest Expenses 300,000.00
Taxes and Licenses 5,000.00
Depreciation 1,152,900.00
 Truck Maintenance Expenses 50,000.00
Telecommunication (Internet and Telephone ) Office 12,000.00
Total Administrative Cost 2,931,900.00

TOTAL COST 9,566,700.00

 Sources of Financing

The project will be funded through debt and equity financing.

 Statement of Cash Flows

RC CASSAVA PRODUCTION COMPANY

PROJECTED CASH FLOW STATEMENT
GOOD FOR 65,937 UNIT/BAGS
YEAR 2021 YEAR 2022 YEAR 2023 YEAR 2024 YEAR 2025

Beginning Cash Balance 5,000,000.00 13,849,966.67 27,030,066.66 50,510,749.99 88,477,049.99

Cash Inflows
22 A Feasibility Study: RC Cassava Production Company
Income from Sales 15,000,000.00 22,500,000.00 33,750,000.00 50,625,000.00 75,937,500.00
Account Receivable - - - - -

Total Cash Inflows 15,000,000.00 22,500,000.00 33,750,000.00 50,625,000.00 75,937,500.00

Cash Outflows

Cost of Sales 4,583,333.33 5,687,500.00 6,554,166.67 7,865,000.00 9,438,000.00

Operating Expenses 4,266,700.00 4,392,400.00 4,530,150.00 4,668,700.00 4,747,900.00

Financing Expenses 300,000.00 240,000.00 185,000.00 125,000.01 60,000.01

Total Cash Outflows 9,150,033.33 10,319,900.00 11,269,316.67 12,658,700.01 14,245,900.01

Net Cash Flow 5,849,966.67 12,180,100.00 22,480,683.33 37,966,299.99 61,691,599.99

Operating Cash Balance 10,849,966.67 26,030,066.66 49,510,749.99 88,477,049.99 150,168,649.98

Line of Credit Drawdowns 3,000,000.00 1,000,000.00 1,000,000.00 - -

Ending Cash Balance 13,849,966.67 27,030,066.66 50,510,749.99 88,477,049.99 150,168,649.98

 Statement of Financial Position

 RC CASSAVA PRODUCTION COMPANY
FINANCIAL POSITION
GOOD FOR 65,937 UNIT/BAGS
YEAR 2021 YEAR 2022 YEAR 2023 YEAR 2024 YEAR 2025
ASSETS

Cash and Cash 13,849,966. 27,030,066. 50,510,749. 88,477,049.9 150,168,649.

Equivalents 67 66 99 9 98

3,420,000.0 3,240,000.0 3,060,000.0

Land and Building, net 0 0 0 2,880,000.00 2,700,000.00

5,000,000.0 5,000,000.0 5,000,000.0

Land (Farm Land) 0 0 0 5,000,000.00 5,000,000.00

5,211,360.0 4,839,120.0 4,466,880.0

Machineries, net 0 0 0 4,094,640.00 3,722,400.00
Merchandise Inventory,
End 416,666.67 229,166.67 275,000.00 330,000.00 396,000.00
Furniture and Fixtures,
net 242,640.00 181,980.00 121,320.00 60,660.00 -

Transportation 2,160,000.0 1,620,000.0 1,080,000.0

Equipment, net 0 0 0 540,000.00 -

30,300,633. 42,140,333. 64,513,949. 101,382,349. 161,987,049.

TOTAL ASSETS 33 33 99 99 98

23 EQUITY AND LIABILITIES A Feasibility Study: RC Cassava Production Company

4,000,000.0 3,000,000.0 2,000,000.1
Loans Payable, net 4 8 2 1,000,000.16 -

20,450,666. 26,960,233. 40,033,266. 62,416,049.8 100,295,449.

Capital 63 25 54 3 99

5,849,966.6 12,180,100. 22,480,683. 37,966,299.9 61,691,599.9

Net Income 7 00 33 9 9

TOTAL EQUITY AND 30,300,633. 42,140,333. 64,513,949. 101,382,349. 161,987,049.

LIABILITIES 34 33 99 98 98

 Statement of Financial Performance

RC CASSAVA PRODUCTION COMPANY

FINANCIAL PERFORMANCE
GOOD FOR 65,937 UNIT/BAGS
YEAR 2021 YEAR 2022 YEAR 2023 YEAR 2024 YEAR 2025

SALES 15,000,000.00 22,500,000.00 33,750,000.00 50,625,000.00 75,937,500.00

Cost of Sales

Beg. Merchandise Inventory 5,000,000.00 416,666.67 229,166.67 275,000.00 330,000.00

Add: Purchases (Merchandise Inventory) - 5,500,000.00 6,600,000.00 7,920,000.00 9,504,000.00

 Total Goods Available for Sales 5,000,000.00 5,916,666.67 6,829,166.67 8,195,000.00 9,834,000.00

Less: Ending Inventory 416,666.67 229,166.67 275,000.00 330,000.00 396,000.00

Total Cost of Sales 4,583,333.33 5,687,500.00 6,554,166.67 7,865,000.00 9,438,000.00

TOTAL SALES 10,416,666.67 16,812,500.00 27,195,833.33 42,760,000.00 66,499,500.00

Operating and Administrative Expenses

Total Other Estimated Cost 1,634,800.00 1,703,000.00 1,774,500.00 1,849,300.00 1,928,500.00

Total Administrative Cost 2,931,900.00 2,929,400.00 2,940,650.00 2,944,400.01 2,879,400.01

Total Operating and Administrative Expenses 4,566,700.00 4,632,400.00 4,715,150.00 4,793,700.01 4,807,900.01

TOTAL NET INCOME 5,849,966.67 12,180,100.00 22,480,683.33 37,966,299.99 61,691,599.99

 Financial Ratios

PROFITABILITY RATIO FOR 5 YEARS

YEAR 2021 YEAR 2022 YEAR 2023 YEAR 2024 YEAR 2025

Net Income 5,849,966.67 12,180,100.00 22,480,683.33 37,966,299.99 61,691,599.99

Total Assets 30,300,633.33 42,140,333.33 64,513,949.99 101,382,349.99 161,987,049.98

24 A Feasibility Study: RC Cassava Production Company

Profitability Ratio 0.19 0.29 0.35 0.37 0.38

PROFITABILITY RATIO FOR 5 YEARS

YEAR 2021 YEAR 2022 YEAR 2023 YEAR 2024 YEAR 2025

Sales 15,000,000.00 22,500,000.00 33,750,000.00 50,625,000.00 75,937,500.00

Cost of Sales 4,583,333.33 5,687,500.00 6,554,166.67 7,865,000.00 9,438,000.00

Total Sales 10,416,666.67 16,812,500.00 27,195,833.33 42,760,000.00 66,499,500.00

Sales 15,000,000.00 22,500,000.00 33,750,000.00 50,625,000.00 75,937,500.00

Gross Profit
Margin 0.69 0.75 0.81 0.84 0.88

RETURN ON INVESTMENT
YEAR 2021 YEAR 2022 YEAR 2023 YEAR 2024 YEAR 2025
 Net Profit 5,849,966.67 12,180,100.00 22,480,683.33 37,966,299.99 61,691,599.99

Total Investment 20,450,666.63 26,960,233.25 40,033,266.54 62,416,049.83 100,295,449.99

ROI 29% 45% 56% 61% 62%

WORKING CAPITAL RATIO FOR 5 YEARS

YEAR 2021 YEAR 2022 YEAR 2023 YEAR 2024 YEAR 2025

Cash and Cash 13,849,966.6 27,030,066.6 50,510,749.9 88,477,049.9 150,168,649.9

Equivalents 7 6 9 9 8
Merchandise Inventory,
End 416,666.67 229,166.67 275,000.00 330,000.00 396,000.00

14,266,633.3 27,259,233.3 50,785,749.9 88,807,049.9 150,564,649.9

Total Current Assests 3 3 9 9 8
25 A Feasibility Study: RC Cassava Production Company

Total Current Liabilities 4,000,000.04 3,000,000.08 2,000,000.12 1,000,000.16 -

Working Capital Ratio 3.57 9.09 25.39 88.81

LIQUIDITY RATIO FOR 5 YEARS

YEAR 2021 YEAR 2022 YEAR 2023 YEAR 2024 YEAR 2025

Cash and Cash 13,849,966.6 27,030,066.6 50,510,749.9 88,477,049.9 150,168,649.9

Equivalents 7 6 9 9 8
Merchandise Inventory,
End 416,666.67 229,166.67 275,000.00 330,000.00 396,000.00

13,433,300.0 26,800,900.0 50,235,749.9 88,147,049.9 149,772,649.9

Total Current Assests 0 0 9 9 8

Total Current Liabilities 4,000,000.04 3,000,000.08 2,000,000.12 1,000,000.16 -

Liquidity Ratio -
 3.36 8.93 25.12 88.15

 Financial Analysis

Based on financial ratios above, the project is profitable and financially feasible to
operate.

VII. Socio Economic Study

The substantial impact of this business is not more on its economic viability but on its social
contribution to the community. Firstly, the project will help solve the perennial problem of the
government on unemployment. It is expected to employ 37 personnel at its initial year of operation and
still increasing depending on the performance of the business. Secondly, the business will generate
indirect employment in the field through hiring by the land owner workers in the farm. Thirdly, it will also
generate additional income to farmers. Fourth, it will make Llorente the centre of agricultural production
in Eastern Samar, boosting the economy of the province. Lastly and more importantly, it will affect
change in values, attitudes and perspective of our poorest of the poor people in the society into a
dignified, empowered and socially and economically developed individual.

26 A Feasibility Study: RC Cassava Production Company

VIII. Conclusion

Cassava production and processing is an emerging sector with huge prospects of

returns. The business is such that ensures maximum profitability and it is certain that funds
invested will be recovered.
The management of the company will guarantee that all operational facilities are
efficiently maintained and serviced at timely intervals; also, funds will be carefully managed and
circulated especially in the areas of marketing, distribution of products and in the purchase of
necessary materials.
With proper implementation, effective and prudent management, the business will
make more than the projected profits in the plan. Based on the above data, the proponent
hereby recommends the immediate implementation of the program because of its high
economic and social impact to the cooperative as well as the community.