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Participant
 
 
Business start-up: 

TARAPITZE-conventional way of producing healthy sugar

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Facts

Year of establishment

2007

Sales (US$)
Two years ago:
Last year:
This year (forecast):
Year 2 (forecast):
Year 3 (forecast):
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast):
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Total number of Employees
Two years ago:
Last year:
This year (forecast): 104
Year 2 (forecast): 205
Year 3 (forecast): 305

The Business

What is your product/service?

Starting this year on, we will provide services to the sugarcane farmers by milling their sugarcane through the conventional method using “tarapitze”. This will provide them an alternative way of milling their sugarcane, increasing the milling time and opportunity to farmers have cash in a longer time keeping them away from usurers. Idle & rolling areas can be productive because they can now haul canes planted in this parts of the farmland using carabao driven carts. This will also encourage farmers to use organic fertilizer in their farms, because there is color & consistency requirement for the end product which can only be attained when organically grown sugarcane is milled. This will be able to cost cut expenses in farming & increase their income per ton by 30%-40%. . The project will create new opportunities and higher living standards for our farmers & their families.

From the tarapitze, sugarcane extract is a product called “muscovado”, also known as poor man’s sugar. Muscovado is a brown color, moist, and fine specialty sugar. It is processed the natural way –completely free from harmful chemicals .It has 11 calories/ 4 grams, also nutritionally rich & retains all the natural mineral & vitamins content present inherent in sugarcane juice. It contains more milligrams of calcium, phosphorus, iron, potassium and sodium It has numerous applications, apart from being used as breakfast sugar sweetener, it is being used to add greater flavor to coffee, espresso or tea. This is why muscovado is in great demand in Unite States, Japan and European countries with aging populations, and where more consumers are becoming more health conscious.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

For the services of tarapitze, the sugarcane farmers of the four barangays of Nasugbu, Batangas will surely patronize the enterprise since it would give them increase in their income from P3,000 to P8,000 per annum per hectare, increase in production capacity and would provide opportunity to farmers to process their own harvest. The milling fee per ton is 20% or P1,010.00 of the finished product. It is estimated that we will mill 100 tons for Year 1, 200 tons for year 2 & 300 tons for year 3.

Muscovado has average farmgate price of P35 to P45/kg. outlet price averages at P50 to P59.90/kg which although high maybe marketable to health –conscious foreign markets. It will be available two sizes:

Retail Pack - 1 kilogram pouch
Bulk Pack – 25 kg bag

It maybe more expensive than the refined sugar, fortunately market taste is ever changing in favor of the dark, not too sweet,brown sugar bringing muscovado industry a sunrise industry.

PDAP said that the $ 10.5 million organic sugar market for the Philippines since 1983 is waiting, but only 10% of the country’s annual production of the commodity are actually exported.

What makes your business different/better than your competitors (competitive advantage)?

Our muscovado comes from organically grown sugarcane , brown , moist and stands in high temperature & with acceptable shelf life. Processed in natural way it is chemical free ,nutritious, healthy & wholesome. It has rich caramel flavor suited for native delicacies , cereal sweetener, coffee, espresso or tea

The Entrepreneur & Management

Describe the entrepreneur & management

I have 42 units of Masters in Business Administration and licensed WIWAG instructor , a computer aided business week for the college students. From 1999 to 2004, I am the program coordinator of the 6 PACAP – Aus AID and 1The Asia Foundation funded projects which aimed to uplift the socio-economic status of the four organizations with at least 100 members each. Though this, we have established four economically sustainable rural enterprises which offered funds for the organizations’ activities.

I am also tapped by the Local DTI to be a part of their team during product appraisals on Business Improvement Course. In my private life, I am managing a family retail business & a piggery farm. This means that I know how to manage a business. I have in my staff one agriculturist and an accountancy graduate. The partner cooperative has enough management skills & good track record

Development

How does your business improve the local living standards (social and environmental)?

Sugarcane farmers will increase their income by P3,000.00-P8,00.00 per annum per hectare, increase in production capacity of farmer-members, provide opportunity and capability to farmers to process their own product, continuous milling opportunity to mill any time of the year, to fill the gap of increasing demand here and abroad for muscovado, generate savings and capital build up, decrease expenses of the farmers, minimize farmers from engaging to usurers, traders, and the use of “pasong”, and encourage farmers to use organic fertilizers.

Male members of the cooperative will work on the operations of the muscovado whereas the female will be involved in packaging, documentations, and marketing of the muscovado. They will also be productive on the decision-making of the cooperative and have the chance to utilize their skills in selling and producing of native food products out of muscovado.

RGFI the partner NGO of the cooperative will assist them on conducting training, supervision, monitoring of operation of the muscovado project.

As the project prospers an expansion will be needed to accommodate the large number of farmers to haul and mill their sugarcanes. It will serve as working capital to utilize the number of sugarcane farmers and additional equipments.

Income from the project will be utilized as revolving capital and to trainings on livelihood and capability building to strengthen the cooperative. Disbursement of income requires 2 signatories with an accompanied legal documents such as vouchers, request for payment, and receipts in accordance with the financial management system of the cooperative.

Needs