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Chapter 1

INTRODUCTION

Background of the Study

Organic fertilizers are natural substances derived from plant or animal sources

used to enhance growth and improve soil fertility, and are regaining popularity due to

environmental and health benefits. They have the ability to reduce issues brought on by

synthetic fertilizers and serve as a potent source of energy for soil bacteria, which

enhance soil quality and crop growth (Wei et. al., 2020). Organic agriculture, also called

organic farming, is a new agricultural system that relies on organic fertilizer such as

compost and green manure that supports healthy products devoid of ingredients that

could harm people or the environment using organic fertilizers. Its fundamental tenet is to

utilize only approved elements to produce food with the highest nutritional value and the

fewest potentially harmful ingredients (Adamchak, 2023).

The use of organic fertilizers dates back thousands of years to ancient civilizations

like the Indus Valley and Roman Empire, where farmers applied compost, manure, and

other organic materials to enhance soil productivity. The Green Revolution in the mid-

20th century shifted the focus towards synthetic fertilizers, but the negative environmental

impact of these chemicals has led to a resurgence of interest in organic alternatives

(Malik et al., 2022). According to the research conducted by the Prescient and Strategic

Intelligence, the global organic fertilizers market size is expected to advance at a

compound annual growth rate of 12.1% during 2022-2030, to reach $14,662 million by

2030. In the United States, manures are the most consumed organic fertilizer accounting

for a maximum share of 46.7% in 2022 and the United States Organic Fertilizer Market is
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fragmented with the top five companies occupying 21.10%. On the other hand, the South

East Asia organic fertilizers market size was also valued at $1.2 billion in 2019, and is

anticipated to generate $2.1 billion by 2027.

In the Philippines, majority of the inhabitants resides in rural areas and relies on

agriculture for livelihood. Since 2004, the demand for organic fertilizer has been on a

steady rise in the Philippines, and the market for organic fertilizer has been expanding. A

large number of farmers in our nation reside in rural areas, where they lack basic

knowledge of how to use modern farming methods (Makal et al., 2017). However, with

the support of the government, organic agriculture has been widely applied in all cities

believing to solves a series of farming problems such as agricultural waste, health issues,

pollution of pesticides and decreased soil fertility (Zhou and Ding, 2022). Fortunately,

Philippines supplies large amounts of raw materials for organic fertilizer production.

In the local setting, there is no store of purely organic fertilizer in which the

researchers would like to establish. The study is beneficial to multiple stakeholders

including local community, educational institutions, investors, development agencies, and

most especially to the local farmers by providing sustainable agricultural practices that

enhance crop quality and yields while reducing their reliance on chemical inputs. In fact,

organic fertilizer can impart the access to healthier, pesticide-free and enhancing food

quality and safety. Given the significance of organic fertilizer, there is a need for a

comprehensive study that explores various dimensions of this type of fertilizer in terms of

feasibility, marketability, acceptability, viability and profitability while addressing its

limitations.
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Business Name

The proposed name of the business that will surely be known by the masses and

easy to remember will be “ORGANIC FARMLINE SUPPLIES” wherein, it means that

the business is in the field of agriculture sowing the seeds of sustainability and reaping

the harvest of a greener future. It is rooted in providing farmers and garden enthusiasts

with high-quality, all-natural organic fertilizers that promote healthier crops, vibrant

gardens, and a more sustainable planet.

Figure 1

Business Name and Logo

Organic Farmline Supplies has the journey to cultivate healthier soils, sustainable

agriculture, and flourishing gardens. The business offers purely organic fertilizers for

vegetables, flowers, and crop-specific formulas. FARMLINE is everyone's trusted

partner in organic nourishment for the Earth and crops.

Objectives

The goal of the study is to determine the feasibility of establishing a store of

organic fertilizers in San Isidro, Davao Oriental. To fulfill this goal, the following

specific objectives were pursued:

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1. determine the marketability of the business;

2. determine the acceptability of the business;

3. determine the profitability of the business;

4. determine the capital requirements of the business; and

5. determine the return on investment of the proposed business.

Significance of the Study

This study would be most beneficial to the following:

Local Farmers and Agricultural Community. This study holds great importance for

local farmers and the agricultural community in San Isidro, Davao Oriental. It can

provide them with insights into the viability of transitioning to organic farming practices,

potentially leading to increased income and improved sustainability. By promoting

organic farming, the study can support local agriculture and help farmers adopt more

environmentally friendly and profitable techniques.

Environmental. The findings of this study are significant for environmental conservation

efforts. Promoting organic farming can lead to reduced chemical pesticide and fertilizer

usage, thereby protecting the local environment and contributing to biodiversity

conservation. This is particularly important in regions like Davao Oriental, known for its

rich natural resources.

Consumers. Potential consumers of organic produce will benefit from this study as it can

help them make informed choices about the food they purchase. Access to organic food

can have positive health implications.

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Local Economy and Employment Opportunities. The establishment of an Organic

Farmline Supplies in San Isidro can stimulate the local economy by creating job

opportunities in farming, distribution, and marketing. Additionally, this venture can boost

the region's reputation as a provider of high-quality organic produce, attracting buyers

from both local and external markets.

Government and Sustainable Development. The government can benefit from this

study by supporting and regulating the organic farming industry. The findings can help

inform policies and initiatives to promote sustainable agriculture and rural development

in the region.

Investors and Entrepreneurs. Investors and entrepreneurs interested in the organic

farming sector will find this study valuable. It can serve as a comprehensive guide,

offering insights into the feasibility and potential profitability of investing in organic

farming in San Isidro, Davao Oriental. The study can aid in informed decision-making

and business planning for those looking to enter this sector.

Future Researchers and Academic Community. This feasibility study will contribute

to the body of knowledge for future researchers in the field of agriculture, sustainability,

and rural development. It can serve as a reference point for conducting similar studies in

other regions and provide a foundation for understanding the challenges and

opportunities associated with establishing an organic farmline supply chains, contributing

to the broader field of sustainable agriculture research.

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Scope and Limitation of the Study

This research is centered on assessing the feasibility of establishing an Organic

Farmline Supplies in San Isidro, Davao Oriental, with a specific focus on marketability,

acceptability, viability, capital requirements, and profitability with the local farmers as

the primary respondents. The proponents will conduct a survey through utilizing

questionnaires to the 16 barangays of the Municipality of San Isidro for data collection

and will involve quantitative analysis of the collected data. The study will be conducted

within a specified timeframe, considering the availability and willingness of the

respondents. This scope outlines the comprehensive assessment that this study will

undertake, specifically in the context of organic farming and supply in the specified

region. Additionally, external factors and cultural considerations will be taken into

account but may not be exhaustively explored within the study's framework. Everything

should comply under the supervision of the policies and standards that the government

agencies implemented to ensure the safety and quality of the product.

Definition of Terms

To provide clarity and easy understanding of this study, terms were conceptually

and operationally defined.

Establishing. Refers to the process of setting up, initiating, or creating a new service or

business. Specifically, it pertains to the endeavor of introducing and implementing

organic farmline supply in the San Isidro area, including the planning, organization, and

operational aspects of this new organic supplies.

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Organic. Typically refers to a method of agricultural and food production that avoids the

use of synthetic chemicals, pesticides, genetically modified organisms (GMOs), and

artificial additives. Organic products are often certified by regulatory bodies to ensure

they meet these stringent standards. Organic farming and products are also generally

associated with environmentally friendly and sustainable practices.

Farmline Supply. The system of sourcing, processing, and distributing organic fertilizer

to consumers in San Isidro, Davao Oriental, while adhering to organic farming principles

that avoid synthetic chemicals and prioritize environmental sustainability.

Fertilizer. A substance or material added to soil or plants to enhance their nutrient

content and improve growth and productivity.

Concoction. Refers to a mixture or blend of various elements, often liquids, created for a

specific purpose, such as an enhancer for animal growth.

Fermented Plant Juice (FPJ). Extract coming from different plants with known origin

and usage and undergone the process of fermentation. It is serves as natural growth

enhancer for animals and source of nitrogen for plants.

Fermented Fruit Juice (FFJ). It serves as natural taste enhancer for animals and natural

fruit sweetener for fruit bearing plants.

Fish Amino Acid (FAA). It serves as natural source of amino acid for animals and

natural source of nitrogen for plants.

Indigenous Micro-Organisms (IMO). It serves as a source of beneficial micro-

organism such as fungus and as natural deodorizer. It helps to hasten decomposition.

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Lactic Acid Bacteria Serum (LABS). It serves as a source of beneficial micro-organism

like bacteria and good digestion for animals.

CalPhos. It serves as natural source of calcium for animals and can be used as flower

inducer for flowering plants.

Oriental Herbal Nutrients (OHN1 &OHN2). OHN1 serves as immune system booster

for animals and OHN2 used as insect repellants for plants.

Vermicast. An organic waste from composting worms.

Natural Base Fertilizer (NBF). An organic fertilizer derived from natural materials

such as compost, animal manure, or plant residues. It is used to enrich soil with essential

nutrients to enhance plant growth and health.

Carbonize Rice Hull. Often referred to as rice husk charcoal, is a product obtained by

heating rice hulls in a low-oxygen environment. It is a carbon-rich material used for

various purposes, including soil improvement, water filtration, and energy production due

to its porous and absorbent nature.

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Chapter 2

REVIEW OF RELATED LITERATURE

This part contains the reviewed studies and journals in the international, national,

and local settings that have important contributions to the conceptualization of the present

study which discusses marketability, acceptability, viability, capital requirements and

profitability of the proposed business.

Marketability of Organic Farmline Supplies

The marketability of organic fertilizers has been on the rise in recent years due to

several factors, including increased awareness of environmental sustainability, the

demand for chemical-free and organic produce, and the benefits of organic fertilizers for

soil health (Kakar et al., 2020). In fact, reducing soil nutrient content due to the use of

chemical fertilizers and pesticides coupled with growing demand for organic food

products to fuel the global organic fertilizer market through 2023. The global organic

fertilizer market is forecast to be around $10 billion by 2023, owing to rising demand for

natural and organic fertilizers-based crop products among consumers across the globe

(Kapoor, 2023). Excessive use of chemical fertilizers and pesticides in agricultural lands

is fast deteriorating the soil nutrient quality, which is boosting demand for organic

fertilizers to revitalize the nutrient content of the soil. Thus, growing consumer awareness

regarding the advantages of organic products is making an increasing number of farmers

across the globe to use organic fertilizers. Accordingly, a rising number of health-related

issues due to the consumption of fruits and vegetables grown with chemical fertilizers is
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augmenting the demand for organic fertilizers in the cultivation of these products over the

coming years.

Based on the new ongoing study of Fairfield Market Research, the popularity of

organic food has taken the US market by storm over the recent years. While 2020 saw a

whopping 12.8% rise in the US organic food sales over that attained in 2018, and 2019,

this has also given a strong push to the market potential of organic fertilizers in the

country. Organic fertilizer commercialization may present a great opportunity to help

deal with the issue of solid waste management and help to improve the declining soil

problems in many developing countries (Bidzakin, 2023). However, the global demand

for organic food and agricultural products has been increasing steadily. Consumers are

becoming more conscious of the environmental and health impacts of conventional

agriculture, leading to a shift toward organic farming practices. Considering as well the

concerns about the environmental impact of chemical fertilizers, such as nitrogen and

phosphorus runoff into water bodies, soil degradation, and greenhouse gas emissions,

have prompted many farmers and gardeners to consider organic alternatives (Kumar et

al., 2019).

Additionally, fertilizer production is gaining increasing popularity to avoid

chemical damage to consumers and to the environment (Aggarwal, 2013). They are of

great importance worldwide for the supply of nutrients in crop production. Organic

fertilizers also play a major role within the EU, as shown by a comparison of mineral

fertilization and the nutrient uptake of plants (Troster, 2023). Organic fertilizers, like

compost and manure, improve soil structure, enhance microbial activity, and promote

long-term soil health. These benefits are appealing to farmers who are looking for
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sustainable and regenerative farming practices. In the Philippines, more and more

fertilizers are commercially produced and utilized, and organic fertilizer market is rapidly

expanding which solves industry waste disposal problems and promotes the sustainable

development of the economy. According to industry reports, the organic fertilizer

business market is expected to reach a value of $3.6 billion in the US by 2025, reflecting

the increasing adoption of organic farming methods and the rising awareness about

sustainability and environmental concerns.

Moreover, the rise in population leads to an increase in demand for food items.

The agriculture sector is under pressure to grow more food crops to meet the need in

which they depend largely on fertilizers for improvement in soil productivity. Majorly

chemical or synthetic fertilizers are used for enhancing crop yield. However, there is

trend toward use of these fertilizers, due to increase in awareness of adverse effects

because of chemical fertilizers to both environment and human beings. People are now

opting for organic food more and are also ready to pay a bit more for them in terms of

price, which is likely to fuel the demand for organic fertilizers (Patil, 2023). According to

Vantage Market Research, the future of organic fertilizers market economy size expected

a growth of $88.1 billion by 2028. The high demand for organic fertilizer is also

supported by the abundance of the needed raw materials such as animal manure, plant

wastes, and market wastes which could have been a nuisance to the environment if not

devoted to good use. Crop biomass such as rice hull; sugarcane bagasse; coconut shell,

husks, and coir is also convertible to organic fertilizers.

Generally, research and practical experience have demonstrated the strong

marketability of organic fertilizers in the agricultural sector. Their alignment with

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consumer demand for organic products, environmental benefits, positive impact on soil

health, and support from regulatory and educational programs contribute to their wide

acceptance. However, addressing challenges related to handling, quality control, and

awareness through education and regulatory support is crucial for further enhancing their

marketability

Acceptability of Organic Farmline Supplies

The acceptability of the fertilizer depends on its availability. Recently, organic

farming has gained favor, especially in developed nations where vegetable production is

concerned. As compared with inorganic fertilizers, these nutrients are not as easily

accessible. The price of the goods is likely to go up as a result. The organic fertilizers are

less expensive than standard inorganic fertilizers (Oviasogie et. al., 2013). However,

there is a greater requirement for organic inputs like organic fertilizers due to the rising

demand for organic fresh food crops like vegetables, fruits, rice, and herbs. For this

reason, there is a chance for regional producers of organic fertilizers to provide these

organic farms with the inputs needed for the growth of organic crops (Philippine Council

for Agriculture, Aquatic and Natural Resources Research and Development, 2014).

The Philippines has around 0.1 million hectares of organically managed

agricultural land, with rice and corn serving as the nation's main organic exports.

According to the Magsasaka at Siyentipiko para sa Pag-unlad ng Agrikultura

(MASIPAG) survey, 1,897 farmers (with 1,754 hectares) were fully implementing

organic rice and corn farming, while 11,052 farmers (with 15,411 hectares) adopted the

low chemical and pesticide practice. This information was made public by the Philippine

Partnership for the Development of Human Resource in Rural Areas (Biñas, 2021)
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Additionally, based on the study of Sossa et al. (2019), pineapple smooth

cayenne's physico-chemical and organoleptic qualities were positively influenced by

organo-mineral fertilization, which indicated whether the fruit was acceptable for exports

or local consumption. Organo-mineral fertilizer had greater effects on the proportion of

fruits that fulfilled export standards. The best organic fertilizer for fruit quality that

satisfies export criteria is different from that for domestic tastes. As a result,

recommendations for organo-fertilizers to farmers should take that destination into

account. The results showed that in Benin, the sensory qualities of scent, sweetness,

acidity, and fiber influence whether pineapple is suitable for fresh consumption.

In a wider perspective, research and practical experience have established the

acceptability of organic fertilizers as a viable and sustainable alternative to synthetic

fertilizers. Their environmental benefits, positive impact on soil health, and alignment

with consumer demand for organic products make them a favored choice in sustainable

agriculture. To further enhance their acceptability, addressing challenges related to

handling, quality control, and awareness through education and regulatory support is

crucial.

Profitability of Organic Farmline Supplies

Organic fertilizer production can be profitable for a business as it is an efficient

way of recycling organic materials. It can provide an ongoing income source as well as

reliable source of fertilizer for the local consumer market. Farmers typically rely on

pesticides and fertilizers derived from plants, animal wastes, and minerals. They

incorporate biological methods, such as the use of one organism to suppress another, to

help control pests. The methods used in organic farming increase soil fertility, balance
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insect populations, and reduce air, soil, and water pollution (Teame, 2017). Additionally,

the study conducted by Lepcha et al. (2021), aimed to assess the performance of organic

and conventional potato farming in West-Central Bhutan, with a focus on Bhutan's goal

of becoming an entirely organic nation and increasing food self-sufficiency.

Conventional potato farming outperformed organic farming in terms of productivity and

profitability. These results offer crucial insights for Bhutan's organic agriculture

development, highlighting the need for improvements to make organic farming more

competitive and aligned with the country's vision for sustainable agriculture.

Organic fertilizer conserves the soil, maintains and sustains crop quality and

productivity, and protects the environment. It likewise improves the biological activities

of the soil as it enhances rapid multiplication of fungi, bacteria, actinomycetes, and other

soil microorganisms. The adoption of organic fertilizer significantly enhances both yield

and technical efficiency in rice farming. The positive outcomes underscore the

importance of encouraging farmers in Bangladesh to use organic fertilizer extensively,

not only for improved profitability but also for sustainable soil health and a reduced

reliance on chemical fertilizers. This approach can have a significant impact on the

economics of rice farming in the country (Salam et al.,2021).

In addition, the growing demand for organic fresh food crops such as vegetables,

fruits, and rice as well as herbal products increases the need for organic inputs like

organic fertilizers. An opportunity, therefore, exists for the local producers of organic

fertilizers to supply these organic farms with inputs required in organic crop production

which surely leads to profitability. This is supported by Shanker (2022), emphasizing a

recent study in the Proceedings of the National Academy of Sciences found that organic
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farmers can actually earn higher incomes compared to conventional farmers, despite

having lower crop yields. This is due to the fact that consumers are willing to pay a

premium for organic food, even when they might not fully understand what "organic"

entails. In essence, the study highlights that the economic advantage of organic farming

lies in the willingness of consumers to pay more for these products.

The country has abundant supply of compost materials, ranging from animal

manures to plant and domestic wastes. Agricultural production generates crop biomass

such as rice hull, sugarcane bagasse, coconut shell, husks, and coir and animal manure.

The country annually generates around 54 million tons (t) of biomass that are readily

convertible to fertilizers and fuel (PCARRD, 2000). Producers or manufacturers are

advised to establish their production plants within a 20-km radius from the source of raw

materials to lessen the production cost. Also, organic fertilizer businesses in the US have

the potential to generate significant revenue due to the growing demand for organic

agricultural practices. While the exact average revenue may vary depending on factors

such as the size of the business, its market reach, and the demand for organic fertilizers in

specific regions, the industry as a whole has experienced steady growth in recent years.

Henceforth, organic farming has the potential to be profitable, but it requires

careful planning, investment, and adaptation to local conditions and market dynamics.

While it offers the advantage of premium prices and the potential for lower input costs, it

may involve higher labor requirements and yield variability. Farmers interested in

organic agriculture should conduct thorough market research, develop a sound business

plan, and be prepared for a transition period as they adjust to organic practices. Success
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in organic farming often requires a long-term perspective and a commitment to

sustainable and environmentally friendly agricultural practices

Capital Requirements of Organic Farmline Supplies

Starting an organic fertilizer manufacturing company can be considered omit

capital intensive, but it is indeed money-spinning business if it is well located. The use of

organic fertilizer forms the backbone and basic necessity of a poor farmer. The traditional

methods of using chemical fertilizers are not sufficient and satisfactory for increasing

productivity of crop and to maintain the fertility of soil (Bachhav, 2017). Whereas the

chemical fertilizers are more costly in market, so it becomes difficult for poor farmers to

purchase it. The raw material is introduced in hopper and further it is mixed with the help

of stirrer. This mixture is then passed to another large sized agitation vessel where it is

kept for decomposition for about 24 hours. When this mixture is completely decomposed

further through filtration fertilizer is separated. In this way, this machine prepares

fertilizer within 24 hours. A fertilizer manufacturing machine serves for various problems

like moving from one place to another, requires less space and is less bulky as compared

to the existing bulky machines. It also helps the farmers to start small business thereby

making them self-dependent. Design and development of the machine is done taking into

consideration various needs of farmers.

Over the years, the market for organic fertilizers has expanded rapidly (Helera,

2013). The number of commercially produced organic fertilizers has increased in a

number of Asian countries. In the Philippines, considerable advancements have already

been achieved relative to organic fertilizer production. The demand for organic fertilizer

is largely influenced by the development in the organic agriculture industry.

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Consequently, a business's ability to survive depends on its ability to handle working

capital effectively (Ramani, 2013). A fertilizer manufacturing machine serves for various

problems like moving from one place to another, requires less space and is less bulky as

compared to the existing bulky machines. It also helps the farmers to start small business

thereby making them self-dependent. Design and development of the machine is done

taking into consideration various needs of farmers (Pawar, 2017).

Moreover, the capital requirements for organic fertilizer production are contingent

on various factors, including the scale of operation, location, production methods,

regulatory considerations, and access to financing. Successful entrepreneurs in the

organic fertilizer industry carefully assess these factors to determine the appropriate level

of investment needed to establish a profitable and sustainable business. Additionally,

efficient resource management and cost control strategies are essential to maximize

returns on the capital invested in organic fertilizer production.

Return on Investment of Organic Farmline Supplies

Organic fertilizer businesses often operate with a high- margin, premium product,

allowing them to generate substantial revenue. By customizing blends for specific crops

and soil types and emphasizing the environmental benefits and return on investment

(ROI) of using organic fertilizer, these businesses can attract a wide range of customers

in the agriculture industry (Ryzhkov, 2023).

The fertilizer industry with a production capacity of 9.75 tons per day for 5 years

is able to provide a profit of 200.18% of the investment costs incurred. Organic fertilizer

industry is feasible because it can provide a profit of 31.7% per year (Putro, 2021). The
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application of the different bio-organic fertilizer from animal wastes significantly

influenced the growth and yield of pechay in terms of plant height, number of leaves,

width of leaves, length of leaves and weight of marketable plants; and productivity

specifically in terms of total plant yield, gross income, net income and return on

investment or ROI. The return on investment (ROI) on the use of bio-organic fertilizer

for organic pechay production also ranged from -48.83% to 53.65% with swine having

the highest ROI which implies that the use of bio-organic fertilizer from animal wastes

especially swine manure is very profitable. However, for maximum yield and profit, the

use of swine manure is more superior than other bio-organic fertilizers tested (Tuan,

2019).

Among the treatments, the application of swine manure as bio-organic fertilizer

resulted in the highest return on investment (ROI). The negative ROI in other organic

fertilizer indicates that the nutrient supplied by these manures are inferior compared to

swine manure to support the needs of pechay for them to give economic yield. These

results indicated that swine manure can be a good substitute for inorganic fertilizer in

growing pechay and a stand-alone source of soil nutrients in organic pechay production.

Moreover, the effect of different bio-organic fertilizers on productivity was

measured in terms of plant height, number of leaves, width of leaves, length of leaves and

weight of marketable plants, while profitability were determined in terms of gross and net

return and return on investment (ROI). Results revealed that all agronomic characteristics

of pechay were significantly affected by the different manures applied. Cost and return

analysis indicated that among the different manures, swine manure resulted in positive

net return of Php 52,375.00 per hectare and the highest ROI (Return on Investment) of
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53.65%, while the rest of the treatments resulted in negative net return and return on

investment (ROI). Based on these findings, among the different bio-organic fertilizers

from animal wastes tested in this study, swine manure can be used as alternative to in-

organic fertilizers and as a stand-alone source of nutrients in organic pechay production

starting organic fertilizer production plant (Tuan, 2019).

Results of a PCAARRD-funded project indicate that an initial investment of

P2.17 million can yield an average annual net profit of P619,000.00. Income can be

realized on the first year of operation, based on the projected 10-year income statement

and c flow. Full recovery of the initial investment can be realized after 2 years and 7

months. Moreover, financial indicators from the projected year cash flow statement show

that organic fertilizer production is a financially viable business. The estimated internal

rate of return (IRR) is 31.64% while the net present value (NPV) is at P966,302.34 at a

discount rate of 20%. NPV in this project is the value of all cash to be received in a 10-

year project life, net of expenses, and less initial investment to establish the production

plant (Domingo, 2014).

In a larger perspective, organic fertilizer production has now become a major

component of agribusiness models across the country with a very low initial plant

investment cost. Whatever business you want to start, you need to make a bunch of

research and prepare a research proposal on how to start and run your company. With a

good plan, you will be able to succeed in starting organic fertilizer production plant.
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Market Analysis

This part provides information that will reflect the status of the market in the

projected organic farmline supply; this includes the target market, size, competitor

analysis, and outlet.

Target Market

The primary target market for this study comprises the local farmers residing in

San Isidro, Davao Oriental. These farmers represent the key respondents for the research,

and their insights, experiences, and perspectives are essential for evaluating the feasibility

of establishing an organic farmline supply in this specific geographic area. The study

aims to engage and gather information from a diverse range of farmers, including those

currently practicing organic farming, conventional farming, or exploring the transition to

organic methods. This inclusive approach ensures a comprehensive understanding of the

local agricultural landscape and provides valuable insights into the potential adoption of

sustainable organic farming practices within the San Isidro community. By focusing on

local farmers as the target market and respondents, the study aims to contribute to the

development of sustainable and environmentally friendly farming initiatives that align

with the needs and aspirations of the San Isidro farming community.

Promotion Strategy

To effectively reach this target market, a multifaceted promotion strategy is

essentials. An online presence, including a professional website and social media

platform, will be developed to showcase the organic fertilizer products. This digital

approach will be complemented including articles, blog posts, videos, and infographics,
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to inform potential customers about the benefits of organic fertilizers. Customer reviews

and testimonials will be encouraged to build trust, and local advertising in community

bulletins will target the local audience. Special in-store promotions and loyalty programs

will incentivize purchases, while active participation in local fairs and community events

will enhance community engagement, highlighting the positive impact on soil health and

biodiversity. This multifaceted promotional approach seeks to create awareness, educate

potential customers, and establish a loyal customer base for the organic fertilizer store,

combining online and offline marketing efforts with a strong focus on education and

community engagement.

Competitors Analysis (Indirect)

This competitive analysis aims to understand our competitions strengths and

weaknesses in relation to the San Isidro, Davao Oriental’s source of fertilizers. Since the

organic farmline supply has no direct competitors, the way to analyze indirect

competitors is to break it down in terms of product offering and pricing. The researchers’

organic farmline supply indirect competitors were the Palle Store, Laurito Store, Arnoco

Store and La-arnie Store.

Table 1

A Table Showing Organic Farmline Supplies and the Competitor’s Product

STORES PRODUCT OFFERING PRICING IN PESO QUALITY

Palle Store UREA 40 per kilo Synthetic

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Ammonium Sulfate 21 per kilo Synthetic

Complete 38 per kilo Synthetic

Ammonium Phosphate 40 per kilo Synthetic

Laurito Store UREA 40 per kilo Synthetic

Ammonium Sulfate 21 per kilo Synthetic

Complete 38 per kilo Synthetic

Ammonium Phosfate 40 per kilo Synthetic

Arnoco Store UREA 40 per kilo Synthetic

Ammonium Sulfate 20 per kilo Synthetic

Complete 38 per kilo Synthetic

Ammonium Phosfate 40 per kilo Synthetic

La-Arnie Store UREA 40 per kilo Synthetic

Ammonium Sulfate 21 per kilo Synthetic

Complete 39 per kilo Synthetic

Ammonium Phosphate 39 per kilo Synthetic

Organic FPJ 35 per 1 liter Organic

Farmline FFJ 35 per 1 liter Organic

Supplies FAA 35 per 1 liter Organic

CalPhos 35 per 1 liter Organic

IMO 45 per 1 liter Organic

LABS 45 per 1 liter Organic

OHN 1 50 per 1 liter Organic

OHN 2 50 per 1 liter Organic

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NBF 150 per sack Organic

Carbonize Rice Hull 150 per sack Organic

Vermicast 60 per kilo Organic

Table 1 shows the product offered by the competitors are all the same such as the

UREA, Ammonium Sulfate, Complete, and Ammonium Phosphate. The pricing of the

product ranges from 20-40 pesos. All the competitors’ product are synthetics. The data

shows that our FARMLINE business differ from these competitors, from the products

offering into the quality of the products. In term of pricing, the prices of FARMLINE

business not that far from the competitors pricing. This concludes, the business

FARMLINE will have the competitive offering in the market.

Competitive Advantage

Organic Farmline Supplies stands out from its competitors by focusing on organic

fertilizers that offer a significant competitive advantage over synthetic fertilizers. Firstly,

they are environmentally sustainable, reducing the risk of soil and water contamination

and greenhouse gas emissions associated with synthetic counterparts. They also enhance

soil health, with organic matter that improves water retention and nutrient-holding

capacity, fostering long-term soil fertility and reducing the need for chemical inputs.

Organic fertilizers release nutrients slowly, reducing the risk of overfertilization and

providing a comprehensive nutrient, resulting in healthier, higher-quality crops and

livelihood. This also appeals to consumers seeking food safety and reduced chemical

residues.
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Moreover, organic farming practices, including the use of organic fertilizers, build

resilient agriculture systems that can better withstand climate change and extreme

weather events. Lastly, the premium pricing potential for organic produce, certification

opportunities, and alignment with the principles of sustainable, locally sourced

agriculture make organic fertilizers an attractive and feasible choice for San Isidro,

Davao Oriental, as they promise both environmental and economic benefits.

Market Outlet

The process of selecting market outlets for the organic farmline supply has been

done with care aiming to make the most efficient use of our budget in acquiring the

necessary equipment and materials for our business. Specifically, the proponents

strategically procure material and equipment such as computer, cash register, fire

extinguisher, sala set, display stands, pens, record book, safety gloves, masks, apron,

CCTV, and ceiling fans, can be purchase at City Hardware and ER Super Mall, which is

located in Mati City. This decision brings an advantage to our business because Mati City

is conveniently close to San Isidro, Davao Oriental, the areas where the proponents

provide organic farmline supply. On the other hand, for the supplies of our organic

fertilizers, can be purchase into our supplier the “Green Solution” that was located in San

Isidro, Davao Oriental where the business will be generating. This proximity not

simplifies the logistics of obtaining equipment but also ensures easy access, to

maintenance and support services allowing to operate smoothly and provide effective

service to the customers.

 25

Chapter 3

METHODOLOGY

In this chapter, methodologies will be presented that are essential for fulfilling the

objectives of the study. The following components are included: research design, sources

of data, research locale, sampling technique, sample size, data collection procedure and

data treatment.

Research Design

The research design used in this study will be quantitative design utilizing survey

questionnaires. The survey will be conducted by providing structured questionnaires and

information gathered will be used to improve the business offering to the target

customers.

Sources of Data

The indicated sources of data will be collected during the conduct of survey using

questionnaire. The researchers will gather the data through a primary and secondary data.

In primary data, the researcher will be conducting a self-structured survey questionnaire

in 16 barangays. The researchers will also provide questionnaires to ask specific question

that is suited in the study and will get responses from the respondents, specifically the

farmers in gathering information.

Research Locale

The respondents of this study will be the local farmers and the agricultural experts

in the municipality of San Isidro, Davao Oriental and the 16 barangays namely; Baon,
 26

Batobato, Bitaogan, Cambaleon, Dugmanon, Iba, Maag, Manikling, Maputi, Lapu-Lapu,

La-union, San Miguel, San Roque, Sto. Rosario, Sudlon and Talisay. It is located in the

southern part of the province between latitude 6.782352 north and longitude 126.11108

east. The local farmers and the agricultural experts are the chosen respondents since they

are the potential customers and qualified as subjects for the current study.

Figure 2

A Map Showing the Scope of the Study

San Roque Lapulapu

Iba

Dugmanon

Maag
Sudlon

San Roque Santo Rosario

San Miguel

Bitaogan
Maputi
 27

Sampling Technique

The municipality of San Isidro and its corresponding 16 barangays namely; Baon,

Batobato, Bitaogan, Cambaleon, Iba, La Union, Lapulapu, Maag, Manikling, Maputi, San

Miguel, San Roque, Sto. Rosario, Sudlon, and Talisay will be the areas that will be taken

sample from. The researchers will use stratified random sampling, which divides a

population into strata or smaller subgroups. Based on municipal statistics, the 16

barangays of San Isidro have a total population of 4,221 farmers, which the researchers

determined by applying Slovin's formula. The researchers will randomly select a subset

of participants from the 16 barangays, and is then collected from as large a percentage as

possible of the random subset.

For stratified random sampling, the researchers identified the total population size

based on the data from the Municipal Agriculturist’s Office (MAGRO) of San Isidro,

Davao Oriental. The data given to the researchers were only the total population of the

farmers of San Isidro, Davao Oriental as the target market.

Sample Size

The sample size will be captured from the results of Slovin’s Formula. Based on

the data gathered from the Department of Agriculture, farmers of San Isidro have a total

number of 4,221 populations of Baon (110), Batobato (645), Bitaogan (164), Cambaleon

(83), Dugmanon (417), Iba (210), Lapulapu (167), La Union (449), Maag (195),

Manikling (556) Maputi (72), San Miguel (185), San Roque (406), Santo Rosario (182),

Sudlon (159) and Talisay (221). Respondents from the 16 barangays in San Isidro will be
 28

given survey questionnaires. Shown below is the formula in determining the analysis of

the samples of the study.

n = N/(1+Ne^2).

Where:

n = sample size

N = population

e = the desired margin of error

The study made use of 10% as the margin of error in the computation. Shown

below is the computation for the sample size (n).

Total population: 4,221

n = 4,221/ (1+4,221 (.10) ^2

= 4,221/ 1+4,221 (0.01)

= 4,221/ 1+42.21

= 4,221/ 43.21

n = 97.68 or 98 respondents

Table 2 below shows the percentage sample population in each of the 16

barangays: Baon, Batobato, Bitaogan, Cambaleon, Dugmanon, Iba, Lapulapu, La Union,

Maag, Manikling, Maputi, San Miguel, San Roque Santo Rosario, Sudlon and Talisay.

The percentage was obtained by dividing the population of each barangay by the total
 29

population of the 16 areas, which sums up to 4,221 population, multiplying the answer by

100 equals the percentage of the sample population.

Barangay Baon has a 110-population divided by the total population of 4,221 and

then multiplying the answer by 100. The exact process goes with the other sixteen

barangays. In this way, the researchers acquired a proportionate percentage of the sample

size.

Table 2

Distribution of Respondents

Area Population Percentage (%) Sample

Baon 110 3 3

Batobato 645 14 13

Bitaogan 164 4 4

Cambaleon 83 2 2

Dugmanon 417 10 10

Iba 210 5 5

Lapulapu 167 4 4

La Union 449 11 11

Maag 195 5 5

Manikling 556 13 12

Maputi 72 2 2

San Miguel 185 4 4

San Roque 406 10 10

 30

Santo Rosario 182 4 4

Sudlon 159 4 4

Talisay 221 5 5

TOTAL 4,221 100 98

Data Collection Procedure

The information will be gathered using the responses of the survey questionnaires

given to the respondents from the 16 barangays indicated in the previous chapters. The

researchers will ask approval from the respondents to answer the questionnaire. In

addition to the data acquired through the survey questionnaires, the proponents will

conduct interviews with pertinent individuals to get answers to their inquiries. After the

material will be gathered, it will be organized, evaluated, interpreted, and the scores for

the scales will be calculated. The researchers will still follow the COVID-19 IATF’s

health safety regulations due to the ongoing health crisis in the country, which does not

exclude the research site.

The following are some of the Inter-Agency Task Force protocols that will strictly

be followed by the researchers in collecting the data:

1. wearing of face masks;

2. observing social distancing; and

3. sanitizing of hands and pens.

 31

Data Treatment

The researchers used questionnaires to carry out the survey for establishing a store

of organic fertilizer and in order to achieve the goals of the study. The researchers will

inform the respondents that they must genuinely answer the questionnaires given to them.

Information from previous batch studies and prepared financial statements and using

additional information from other references will be taken to attain the study’s main

objectives. The results will be interpreted to simplify the amount of data into a simpler

summary. After the interpretation, the data will be presented by putting them into graphs,

figures and tables for a clearer comparison of the results.

 32

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