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Business start-up

3

PINEAPPLE FIBER PRODUCTION

A community -based enterprise for the poor pineapple growers

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    Pineapple farmers procesing fibers as thier alternative source of income while waiting for harvest.

Pineapple fibers can be produced by breaking the matured leaves through a decorticating machine. Leaves are waste materials in pineapple production that can be turn into fiber and sold to contact markets, this will create local employment particularly to poor pineapple growers.

Facts

Year of establishment

2008

Sales (US$)
Two years ago:
Last year:
This year (forecast): 31,680
Year 2 (forecast): 34,859
Year 3 (forecast): 38,344
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 6,680
Year 2 (forecast): 9,859
Year 3 (forecast): 8,344
Total number of Employees
Two years ago:
Last year:
This year (forecast): 30
Year 2 (forecast): 60
Year 3 (forecast): 180

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 2,000
Loans (debt) 9,000
Share capital that you seek from investors (equity)
Other sources 2,000
Total finance needed (US$) 13,000

The Business

What is your product/service?

The business model involves establishment of pineapple fiber processing center, where defibering of pineapple leaves are going to be done and will also serve as storage and marketing place of processed fibers.

Fiber production requires decorticating machines, stock room, wash and drying facilities made up of stainless sheets which can be fabricated locally. The sources of profit of the business will come from the fibers that will be sold in two recent markets contacts. The fiber production technology is very simple and the pineapple growers community has direct hold on the raw materials.

The center will cater its services to the poor farmers through employment in the processing center or suppliers of fibers and raw leaves. A mobile decorticating machine shall be acquired to service the processing of fibers in the villages and to provide training to farmers in the fiber production. Part of the services is to provide decorticating machines to farmers in the form of loan and they pay it back partly from the fibers that they marker in the center.

Part of business spin –off that will take place in year 5 includes the production of value added products such as Mats, Specialty paper, bags, novelty products and fabric. Women member of the sector will benefit from this as they will be trained and given capitals to produce the product in their backyard. they can generate income after they sell out the output in the center. This source incom from this enterprise will bridge the need of the household.

The ful time labor requirements to run this busness is only 4 persons, to include. Manager, Bookkeeper, Cashier, Decorticating machine technician / operator. The labor in the production will be drawn from the trained farmers. The business will cover the entire province, piloting in four major pineapple produceing municipalities and the market target coverage is within the South East Asean region.

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

Camarines Norte is the top producer of pineapple particualrly the Formosa or queen variety. There is no other provinces in the Bicol region that are actively producing pineapple fiber. This is the advantabe of the business in terms of marketing since the competition is not an issue yet.

Compare to other fiber products such as abaca, and coconut, pineapple fiber has lesser production cost given the fact that the raw materials can even be had for free or at a very minimal cost some farmers ask for clearing their plantation site and let the leaves taken for free. The machine is pretty much cheaper than the other defibering machines used for coconut and abaca.

More so, the market of the fibers is available in fact the government of the philippine itself encourage the government agencies to use the pineapple cloth which is basically made up pineapple fibers. (Republic Act 9242-October 2004).

The business center will buy produced fibers from the communities packed, store until the target quota is meet. It will be sold then to market contacts. The farmers can have thier profit right after the fibers have been brought to the center.

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

The unique feature of the business lies in the convertion of leaves -a non value and waste materials into a source of alternative income for the poor farmers. Apart from this, there is a potential to expand the income of farmers through value added products from fibers.

The Entrepreneur & Management

Describe the entrepreneur & management

I had a rich experiential background in enterprise managment as I handled community -based enterprises in my work in the Socio Pastoral Action Center Foundation Inc. (SPACFI). I was also a board member of Sustainable Poverty Alleviation Multi Purpose Cooperative. The expereinces I gained from my involvement in the "Integrated Pineapple Project" gave me a broad understanding and competence in fiber production industry. I assisted the poor farmers in the production, processing of fiber and marketing endeavor which give me the leverage to establish contact with the market and buyers. During this period, I able to realized that for a business to succeed there must be a clear and real demand for the product. There must be comparative advantage in terms of raw materials and labor. The fiber production technology is simple, and one must tap available resources and services to run the business.

Development

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

The business will generate direct employment to poor pineapple growers, through the community level fiber production. Through this, the poor farmer's household will increase thier income by 30% thereby strengthen their access to avail the basic needs of the family such as health, education and potable drinking water.

A major contribution of this business towards the cause of environemnt will happen on year 5 when the business will expand to transform the fiber into paper bags. this will be sold in markets, stores and groceries. the purpose is to reduce the use of polyethylene bags that causing congestions of drinage systems and pose threat to environment.

Over the short term, the business will directly supplement incomes of poor pineapple farmers. Over the medium term, more value adding production such as paper bags production, handloom fabric weaving, and novelty item production, more livelihood opportunities for more people can be opened. Over the long term, a big boost to environmentalism will be given served through the more widespread use of bio degradable paper bags and significant reduction of use of polyethyelene bags in all markets, malls and store in the province.

3 comments

Pineapple Fibres Production

Similar processing and marketing with Bamboo fibres....
Interesting outlet...

Network Emda
Piet IJben

29 May 07, 23:32 Piet IJben, 29 May 07, 23:32

Pineapple Fiber production

1. I noticed that the enterprise is being seen as a mere "alternative source of income...to meet the basic needs of the family". The enterprise for it to be really viable and sustainable must be viewed as a "business" and not merely a micro livelihood project. I know where you're coming from, that's why you (as an entrepreneur) must have a real paradigm shift here.
2. It's not quite clear to me the form of business organization that you are proposing. Will it be a cooperative? A corporation? or a Sole Proprietorship? Kindly expound on this under Sec. 1.5. How will the structure look like? Demonstrate in your structure the participation of the local farmers. Who will handle marketing and distribution?
3. Please expound more on your market analysis, focusing on demand analysis for fibers and finished products; do you have statistics of this to back-up your claim (cite source)? otherwise it will be a baseless generalization. Then move on to supply analysis, also with statistics or figures, them move on to demand-supply analysis highlighting gaps--this is the basis of you business opportunity.
4. What is the basis of you target sales? volume?
5. In you risk assessment, evaluate your mitigating measures if they are SMART, particularly be specific.
6. You did not follow the finacial template provided, please do so.
7. How many are expected to benefit from this business? How many employment will be generated?
8. Please edit your grammar and sentence construction to make your plan more understandable.

If something else crosses my mind, I'll e-mail you.
Good luck!
Felix

31 Aug 07, 08:02 Felix Tonog, 31 Aug 07, 08:02

Need info about price of decorticator for processing pineapple fiber

Dear Mr Felix

I am M Saleh Ali Ibrahim from Indonesia.
I will developing pineapple fiber industry in Indonesia.
So I want to know about cost analysis in pineapple fiber production.
If you don't mind please give me an information about that.

Thank you and best regards

M Saleh Ali Ibrahim

26 Mar 09, 04:02 M Saleh A Ibrahim, 26 Mar 09, 04:02