NAME JUNIEL REY BANTILAN GIGAQUIT

BIRTHDAY FEBRUARY 15, 1997

ADDRESS 2ND STREET, FAIRMONT SUBD, VILLA KANANGA, BUTUAN CITY
CONTACT # 09266406398
SUBJECT ABM1
SECTION ABC1
FEASIBILITY STUDY
I. Business Overview
Local farmers have been complaining about the increasing price of feeds. The J&J Agri
Productions Incorporation have been working out some solutions to fill this opportunity to our
local farmers. One of the solutions we have come up with is the provision of an alternative
source of crude protein: the Black Soldier Fly (BSF) larvae.
These flies will be reared in a safe and engineered environment that is optimal for their
growth and development while keeping them safe from any possible outside contamination.
We plan to put a small-scall facility inside the Caraga State University – Main Campus since
it is strategically located in the middle of Barangay Ampayon, plus there are areas that are
underutilized.
The structure of the business is simple:
1. Collect food wastes from the market and restaurants;
2. Feed the sorted food wastes to the larvae;
3. Sell the larvae to local fish, chicken, and swine farmers.
There are no costs incurred in acquiring the food wastes since… well, it is waste!
Therefore, if we take the ROI equation: profit/cost of investment; it will be profit/zero and
anything divided by zero equals infinite; we can then ensure that there is profit in this
enterprise.

II. Product Concept

Problem
Increasing food wastes due to increasing population; expensive feedstuff for livestock
farming due to importation of protein ingredients like fishmeal and soybean.
Solution
Black Soldier Fly (Hermetia illucens) Biowaste Treatment Facility
Introduction
Increasing global population comes with the challenge of feeding the people and
consequentially, increasing biological wastes. This means that areas supposed to be utilize
for food production may be directed instead towards housing and landfills. Such wastes raise
environmental concerns including contamination of water, air, and soil (Pastor et al., 2015).
The pressure of feeding the population is laid on to the producing firms, and the
Philippines still continue to import soybeans as the major source of protein for feedstuff
ingredients (PR, 2022). This factor thus pushes the price of commercial feeds available for
local farmers and as a consequence raises the price of locally available commodities.
BSF larva (BSFL) farming is the solution to both problems. Not only does the BSFL
reduce waste efficiently but it is also a good source of protein for animal feeds. A BSFL has a
bioconversion rate of up to 30% from food
Waste BSF
wastes. It also has lesser amount of released
receiving Nursery
CO2 compared to composting in treating
wastes. Lastly, BSFL crude protein can reach BSF waste (love
up to 40% depending on the substrate used 3 treatment unit cage, dark
on feeding it (Siddiqui et al., 2021). Product cage,
harvesting hatchling,
The enterprise will start with a nursery
microscale unit of 27 m2 area or less with the
following partition:
9
Systems
Love Cage
The love cage will house the adult black soldier flies for
mating. The Swiss Federal Institute of Aquatic Science
and Technology in their BSF Biowaste facility uses a net
cage than can be hung and dismantled. The
dimensions are 70x70x140-cm, it has a zipper at the
bottom to install the attractant and “eggies”, and a
tunnel on one side to easily transfer the flies from the
dark cage.

Dark Cage
The dark cage is where the pupa emerges as an adult
BSF. However, it will not be free to fly right away. A BSF
pupation may last up to 2 weeks thus the pupae will be
stored in the dark cage for 15 days to ensure that majority
of the pupae has hatched. Once the flies emerged, the
darkness will keep them calm and prevent from mating.
Afterwards, a tunnel on the side of the dark cage will be
attached to the love cage. To stimulate the flies to transfer
to the love cage, a lamp will be used. The dark cage is
made of double layer fabric: a dark soft fabric on the inside and a light blocking fabric on the
outside, both fabrics let air pass through. The dark cage can be attached on a frame for the
duration of its usage.
Feeding Station (Waste Treatment Unit)
The feeding station is where the
BSFL will feed on wastes. For the
initial run of the enterprise, a
small rack (of either wood or
steel) can be used to stack either
deep plastic round basins or
plastic crates as feeding bins.
Images taken from Google Search.
The rack dimension can be
modified to fit the size of the feeding bins. The rack can be stacked up to 3 times the height of
the bins for easy management. The feeding station should be enclosed by a net to prevent
predators from entering and ventilation should be installed to maintain the optimal temperature
between 24-30oC. Photos presented below are for reference.
 Eggies
Eggies are the platforms used to
encourage BSF egg laying. These can
be made using wood or corrugated
carton.

Images taken from

Google Search.

Attractant
BSF are attracted to smelly substances like fermenting fruits, dead flies, or residue. Even BSF
eggs act as attractant. (Dortmans et at., 2017)

Input and Output

This enterprise will have zero-cost input since it will be utilizing wastes from the market,
restaurants, and households. The waste received will be sorted in the waste receiving area
where unwanted biowaste such as citrus remains, high-cellulose waste, plastics, and
otherwise undigestible to the BSFL will be removed. In the future once the enterprise has
expanded, running the waste through a hammer mill machine would make the wastes easily
accessible for the larvae to eat.
After 2 weeks and a half inside the feeding bins, the larvae will enter its prepupae stage and
will try to crawl out of the bins. This is the time to harvest the larvae since this will be when
they are at their biggest. The larvae will be separated from their frass and about 3-5% of the
harvested population will be moved in the dark room to replenish the BSF population. The
larvae will then be further processed into feedstuff while the frass will be used as soil
amendment.
III. Business Model Canvas

1. Value Proposition
Facility construction
Government Institutions Procurement of materials BSF Larvae Discounts and special BSF Larvae
Biosecurity measures One of the alternative prices Fish, chicken, and swine farmers
Fish, chicken, swine Feeding sources of protein for
farmers Greenhouse Maintenance chicken and fish Free package
Sanitation production; also Location: Butuan City and nearby
Local residents Marketing reduces food waste in Feedback municipalities
Bookkeeping and the environment
University accounting Business Customer Support
Research and development Locally accessible
Economical pricing
Supports local
farmers, retailers, and
Finance food processors
Capital (from grant or loan) Organic
Human
Labor
Intellectual
Necessary Skills (and
Online selling
certificates)
Physical
Direct selling
Facilities (storage, waste,
housing, greenhouse)
Land
Inputs (feeds, vitamins, etc)

8. Cost Structure

BSF Larvae
Capital Expense Production Expense
Larvae
Construction facilities Utilities Frass
Materials procurement Labor Training
Taxes and licenses Maintenance
1. Value Proposition
Black soldier fly larva is one of the cheapest sources of crude protein for raising fish and
chicken. These larvae can be fed directly, live or dried, or can be processed further to mix
with other ingredients. The production utilizes food waste, reducing pollution in the
environment. Black soldier fly research is an active field as well, giving an avenue for
further application such as oil extraction for cosmetics and biofuels.

2. Customer Segment
The main customers of this enterprise will the local fish and chicken farmers of Butuan City
and neighboring municipality.

3. Marketing Channels
Direct selling is the most effective channel for this enterprise at the beginning since the
production level is low.

4. Customer Relationship
Feedback and customer support will be provided via online channels such as online
messaging, email, and social media.

5. Key Resources
Capital will be raised from different competitions that offer monetary prize to start the
enterprise. The labor will be hired from the local residents. The skills necessary to work for
the enterprise is simple housekeeping skills. The facilities, materials, and equipment will
be procured prior to the start of the production.

6. Key Activities
The key activities are: collection of food waste, rearing of fly, setting up of attractant,
collection of eggs, hatching to 5-days-old larvae, waste treatment, larvae harvest.

7. Key Partners
The main key partner would be Caraga State University, then other institutions and
government department such as Department of Agriculture.

8. Cost Structure
The cost will be mainly on construction of facilities and procurement of materials. See
Production.

9. Revenue Stream
The cashflow of this enterprise will be coming directly from selling the larvae as feeds and
the frass as soil amendment.
IV. SWOT and TOWS Analysis

• Zero-cost production since input is • Generates foul odor which may

food waste. cause disturbance.
• Does not require large land area. • Attracts unwanted predators such as
• Produces cheaper protein source for lizards, frogs, rats, snake, etc.
animal production while reducing • Flies are sensitive to temperature
food waste pollution. changes.

STRENGTH WEAKNESS
OPPORTUNITY THREAT

• B.A.I. does not approve fly rearing

• LGU can invest in this enterprise to due to possible biohazards (e.g.,
reduce waste in municipal level flies are known as carriers of
while generate income. disease)

STRENGTHS WEAKNESSES
OPPORTUNITIES Produce household-scale If built in a populated area,
rearing units so that each a new design of
household that are infrastructure should be
interested in processing made to allow BSF rearing
their own biowaste will be while avoiding odor
able to utilize BSF waste disturbance by using
production. ventilation systems.

THREATHS Make a proposal to B.A.I. BSF rearing should be

to allow BSF rearing in place near dumpsites
their permits showing the where odor disturbance is
pros and cons of it. Or to expected.
continue rearing BSF in
secret for self-use only.
V. Production
Capital Cost
Item Quantity Unit Unit Cost Total
₱
Net 100 m 30.00 ₱ 3,000.00
₱
Feeding Bins 70 pc 25.00 ₱ 1,750.00
₱
1x2x8 5 pc 100.00 ₱ 500.00
₱
1x1x8 3 pc 80.00 ₱ 240.00
₱ 5,490.00

Estimate
Indirect Cost (monthly) ROI 77%
₱
Electricity 500.00
₱
Water 500.00
₱
Transportation 400.00 This enterprise does not have production
₱ cost since the input is food waste that is to
Maintenance 500.00 be collected from the market, restaurants,
₱ and fast-food chains.
Labor 4,500.00
Expenses incurred on a monthly basis is the
₱
indirect costs.
6,400.00
Expected ROI is at 77%, meaning the
capital cost can be returned after 3 months
Mark-up ₱ (first month is for initial incubation of BSF
(20%) 1,280.00 larvae).
Yield 12 Kg/day
360 Kg/month
₱
Pricing 21.33
VI. Gannt Chart

1 Aug 7, 2023 Aug 14, 2023 Aug 21, 2023 Aug 28, 2023
1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3
7 8 9 1 2 3
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1

TASK START END M T W T F S S M T W T F S S M T W T F S S M T W T F S S

Building of Facilities

Posting 8 7 23 8 8 23
Flooring 8 9 23 8 9 23
Roofing 8 10 23 8 11 23
Net Installation 8 12 23 8 13 23
Equipment
8 12 23 8 13 23
Installation

Waste Treatment

Waste Collection 8 14 23 8 14 23
Waste Sorting 8 14 23 8 14 23
Larvae Waste
8 15 23 8 29 23
Treatment
Harvest 8 30 23 8 30 23

Fly Mating

Egg Trapping 8 14 23 8 14 23
Egg Hatching 8 15 23 8 15 23
5-DOL 8 15 23 8 19 23
Fly Transfer 8 12 23 8 14 23
VII. Marketing Strategy

VIII. References

B. Pastor, Y. Velasquez, P. Gobbi, S. Rojo. (2015). Conversion of organic wastes into fly larval biomass: Bottlenecks and challenges. J. Insects
Food Feed., 1 (3) (2015), pp. 179-193

Bish, J J. (2023, March 20). Overpopulation: Cause and effect. Population Media Center. https://www.populationmedia.org/blog/overpopulation-
cause-and-effect

Dortmans, B., Diener, S., Bart, V., & Zurbrügg Christian. (2017). Black soldier Fly Biowaste processing: A step-by-step guide. Eawag.

Surendra, K. C., Tomberlin, J. K., van Huis, A., Cammack, J. A., Heckmann, L.-H. L., & Khanal, S. K. (2020). Rethinking organic wastes
bioconversion: Evaluating the potential of the Black Soldier Fly (Hermetia Illucens (L.)) (Diptera: Stratiomyidae) (BSF). Waste Management, 117,
58–80. https://doi.org/10.1016/j.wasman.2020.07.050

Public Relations (PR). (2022, April 25). Marcos backs research on alternative animal feeds sources. Retrieved March 16, 2023, from
https://www.pna.gov.ph/articles/1172866

Siddiqui, S. A., Ristow, B., Rahayu, T., Putra, N. S., Widya Yuwono, N., Nisa’, K., Mategeko, B., Smetana, S., Saki, M., Nawaz, A., &
Nagdalian, A. (2022). Black soldier fly larvae (BSFL) and their affinity for organic waste processing. Waste Management, 140, 1–13.
https://doi.org/10.1016/j.wasman.2021.12.044