a technopreneurship study on ricotta cheese repaired)
TRANSCRIPT
A TECHNOPRENEURSHIP STUDY ON RICOTTA CHEESE
IN LOS BAÑOS, LAGUNA
A Special Problem Report submitted in partial fulfilment of the requirements for graduation with a degree of Bachelor of Science in Agribusiness Management from the College of Economics and Management, University of the Philippines Los Baños, College Laguna, Philippines, First Semester 2010-2011. Prepared under the supervision of Prof. Nanette Abelilla-Aquino.
PAULINE CARMEL JOY C. EJE
INTRODUCTION
Filipinos are known to eat five times a day and has the tendency to have snacks in
between meals. Some favourite snacks include burgers, pizza and sandwiches which
drive the growth of the country’s cheese consumption.
According to the US Department of Agriculture, 8000 tons of cheese including
both imported and locally processed, are consumed by the Filipinos in 2006. Many of
these include home-based production of traditional cheeses like kesong puti or cottage
cheese. However the consumption of the Filipinos is still low compared to other
countries. Nevertheless, it can be noted that the cheese consumption of the Philippines
along with other Asian countries like Japan and South Korea are rapidly growing.
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Globally, it is forecasted that the growth on cheese consumption is 2% annually,
and the largest potential growth is still in the main importing regions of Asia including
the Philippines wherein local production cannot catch up with the growth of
consumption. This entails the need for the country’s dairy industry to improve and go
into local cheese productions so as to share with the chunk of profit earning ventures in
the industry.
In April 19-May 8 this year, several interested students along with State
Universities and Colleges (SUCs), technology developers and UPLB faculty and staff
have undergone a training sponsored by the Agriculture, Forestry and Natural Resources
(AFNR) program. The program’s purpose is to promote technopreneurship in the
University of the Philippines Los Baños. The university is known to have a long list of
technologies developed every year. As seen by the AFNR Program, these technologies
can be a good source of profit if properly used and marketed. Thus, they conduct the
short-course training to help the university utilize the technologies and at the same time
earn, through business start-ups to be conducted by the participants.
Eventually the technopreneur of this study was one among the interested students
who went through the training and was now on the process of starting up a business for
the commercialization of the Ricotta Cheese as developed under the supervision of
DTRI-UPLB, with proper guidance of Professor Olivia C. Emata, head of Dairy Products
and Technology Development Division of the ADSC-UPLB. The technopreneur got
interested with the training as she has experienced having small business experiences in
her high school years. Also, her topic for the Special Problem was supposed to be about
whey, the by-product of cheese making. But then, the idea of starting up a business
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utilizing the technology of UPLB encouraged her more, and thus resulted to the start of
this study.
Significance of the Study
This study is about the actual experience of the student on conducting a start-up of
a technology-based business. This is an immersion activity that introduced the student to
the actual operations of the business start-up. These experiences of taking actual
decisions on a real business set-up let the student learn to apply and properly strategize
on solving the problems dealing with the basic functions of the business.
This may also be a helpful tool not only to DTRI but also to the existing and
would-be technopreneurs involved in production of dairy products through input of new
ideas about the new consumer concepts that this study will be generating.
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Objectives of the Technopreneurship Study
The general objective of the study is to document a technopreneurial start-up
experience and reflect on the insights gained from such experience.
Specifically, the study aims to:
1. Present a business plan for the Ricotta Cheese enterprise;
2. Describe the processes in setting up and starting a technology-based business;
3. Present the start-up problems and issues encountered in starting a techno-venture;
4. To assess the initial performance of the start-up;
5. Reflect on the knowledge, skills, values, work ethics, and insights
gained/developed from the start-up experience; and
6. Come up with courses of actions for the implementation of the business plan, the
enterprise, and the AFNR Program, and to identify investment and development entry
points for potential stakeholders in technology-based enterprises.
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Scope and Limitations
The study is limited by the available resources of the technopreneur, especially in
the production runs wherein the marketing and other areas of the study are dependent on.
Also, the location of marketing is still limited to Los Baños, Laguna due to the limited
finances the technopreneur has. The yield of the production runs also is a constraint to the
marketing of the product as it has no fixed volume. Ricotta is not known to the
consumers yet, that is why there is a need for product samples for taste tests and a brief
introduction of the product to them as well.
Production runs are also highly dependent on the working capital available to the
technopreneur, thus it inhibits the growth of the enterprise whenever there is not enough
cash on hand.
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Definition of Terms
Ricotta - a soft Italian cheese that resembles cottage cheese
Curd - a substance consisting mainly of casein and the like, obtained from milk by coagulation, and used as food or made into cheese.
Rennet - a preparation or extract of the rennet membrane, used to curdle milk, as in making cheese.
Whey - a milk serum, separating as liquid from the curd after coagulation, as in cheese making.
Other types of cheeses mentioned:
Edam Cheese - a mild, hard, yellow cheese produced in a round shape and coated with red wax.
Blue Cheese - a rich cheese in which the internal mold manifests itself in blue veins: made in France esp. from sheep's milk and elsewhere also from cow's milk and goat's milk.
Cream Cheese - a soft, white, smooth-textured, unripened, spreadable cheese made of sweet milk and sometimes cream.
Cottage Cheese - an extremely soft, or loose, white, mild-flavored cheese made from skim-milk curds, usually without rennet.
Parmesan Cheese - a hard, dry variety of Italian cheese made from skim milk usually grated and sprinkled over pasta dishes and soups.
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Background of the Technopreneurship Student
The technopreneur of this study, Pauline Carmel Joy Eje does not really have a
formal entrepreneurial background from the family she grew up in. Her family, however,
has been transferring to different barangays in her place of birth, Calapan City, as far as
she can remember with her childhood days. This was said to be one of the sources of
ideas for entrepreneurial activities of many. During their transferring of residency, her
family easily copes up with the community and had good relationship with the
neighbours. She has been a witness to her parents’ sidelines along with their teaching
career, in order to raise the four children of the family well. Her mother has been a dealer
of Tupperware and for some time beauty products from Avon and Christmas light during
its season. This did not really occur deep in the technopreneur’s mind as she was aspiring
to become teacher like her parents during this time. She just realized that these observed
activities had an effect on her during the star-up of this venture.
She spent her elementary and secondary years at the city’s pilot schools. It was
when she was in her 4th year in high school when she got interested to being an
entrepreneur. Using her own allowance and some of her earned money as capital, she
ventured into selling biscuits, pad papers, candies and chocolates to her classmates little
by little, and these made her popular in the class, as well as in the adjacent classrooms to
her homeroom. At first, she was hindered by the school rules regarding the utilization of
the school canteen. But then, her homeroom adviser, upon learning about her venture,
allowed and further encouraged her to continue it. Her classmates preferred to buy from
her most of the time, since they do not have to go to the school canteen which was a bit
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far from the classrooms. Also, she accepts suggestions as to what will be the other
products she can offer in class. This further improved her profits given the fact that the
customers really like the product. She just used some simple computations to realize her
profits from her ventures, and the thought of earning from these really encourages her to
own a business in the future.
During one of her trip to Manila to take a college entrance examination, she was
given a chance to have a trip to Divisoria for the first time. Upon seeing some products
that will help in making some of the requirements in class like stencils and stickers,
which she knew were not available in the school supply stores near the school, she
invested some of her pocket money in wholesale buying of these stuffs. Eventually, she
did receive a good sum of money from it.
Her selling experiences during her 4th year in high school gave her the idea of
taking a course that has something to do with businesses, and thus led her to taking up
B.S. Agribusiness Management at the University of the Philippines Los Baños. At first,
she was tempted to take up Nursing, which was the trend during those times, for college,
but the idea of having a business of her own encouraged her more. Her family’s support
also helped her to decide in choosing this course.
Her experiences in her ventures were not always successful though. During her 2nd
year in college, she had the chance to experience electronic load retailing, which she
found not the business for her. She had a hard time with maintaining her capital since her
customers were mainly roommates, dorm mates, classmates and other friends. They tend
to text her whenever they need load. She experienced difficulty in collecting for the
payments, which she should have used for the next load she will use for retail.
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Eventually she stopped this business and went into being employed as a tutor of a
Grade 2 student and a student assistant to a professor in the university. This time, it was a
very different experience. Providing service is not as challenging as providing tangible
products to customers. There was no concrete gauge as to the effectiveness of the tutorial
service as well as the assistance given to the professor. However, it was demanding more
time than her previous experiences in business. Also, her eagerness to decide or innovate
on things was being limited by being employed. Thus, she was further persuaded to have
a business of her own in the future.
In the summer of 2010, she was given the chance to be a part of the short course
offered by the Agriculture, Forestry and Natural Resources (AFNR) together with
Department of Agribusiness Management, wherein students, State Universities and
Colleges (SUCs) and some technology developers became participants.
She became interested with the technopreneurship study, a newly offered type of
Special Problem, that’s why she was able to come up with this study.
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OVERVIEW OF THE PRODUCT / INDUSTRY
Dairy Industry
According to the U.S. Department of Agriculture, the top five largest export
countries for dairy products are Mexico, Canada, Japan, China and Philippines. Mexico
imports all their dairy products and is still expected to rise due to their demand for
processing inputs, and demand from tourism and retail sectors. Canada and Japan, on the
other hand, depends on the U.S. for their imports and exports of dairy products. Also,
China has U.S. as its second largest dairy supplier.
The Philippines, which has only 1% domestic production supply and its demand
is also seen to have high dependence on the U.S. and other countries for imports of dairy
products (International Dairy Food Association, 2004).
The top three exporting countries in the Philippines in 2008 were New Zealand,
United States and Australia. Forty-two percent of the imports came from New Zealand,
18% from United States and 15 % from Australia. Nestle Philippines alone, accounted for
more than half of the country’s milk imports (NDA, 2008).
One factor for high imports is the very low cost of tariff imposed on imported
milk. Also, importation is needed by the country due to the low volume of local supply
which could not address the whole country’s demand for milk. There is seen to be a
continuous increase in the number of institutional buyers and distributors of local fresh
milk, coffee shops serving fresh milk and milk booths at the malls.
Local dairy farmers, with the help of the government through the National Dairy
Authority were given the chance to own the milking cows, which the NDA imported
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from other countries. This increased the population of dairy animals as well as the milk
supply in the country. Ultimately, this opportunity gave life to the dairy industry in the
Philippines.
With the continued support from the government, the dairy industry in the country
grew and actively helped in the economy. It also gave opportunity to those who had the
resources to participate this industry.
Cheese Industry
According to history, in 400 A.D., the Dutch has started producing and this
activity has been improved along with the progress in the cattle breeding improved, and
has been further passed on across countries making cheese a popular food product.
In the Philippines, the history of cheese production cannot be traced. The country
has locally produced cheeses, but still the company has to import cheese from the major
producers in the world. New Zealand is the top supplier of processed cheese to the
Philippines. Australia and the United States are also key sources. Competition has greatly
intensified among the major players, especially coming from the European Union which
has been posting a growing market share (Figure 1).
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Figure 1. Philippine Major Suppliers of Processed Cheese, 2008
New Zealand65%
United States7%
Australia8%
Ireland7%
Netherlands5%
Others8%
Source: National Statistics Office, Philippines
Most households consume cheddar cheese and processed cheese, while
institutional buyers prefer mozzarella (for pizza), parmesan (for pasta) and processed
cheese (for food preparations). The Edam cheese, known to Filipinos as keso de bola, is
highly saleable during the Christmas season. Cream cheese, on the other hand, is known
for being a spreadable type and is commonly incorporated with breads and bagels. There
are still many other types of imported cheese available in the supermarkets (Table 1).
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Table 1. Imported Cheese Brands By Country of OriginCheese Type Brand Country of OriginSingles Bega, Lemnos, Millel Romano Australia Happy Cow Austria Arla Danish Emmental Denmark La vache qui rit, President, Welcome France Land O'Lakes USA Cowhead Singapore Anchor New Zealand Coon AustraliaCut-up Emborg Austria Babybel, Bonjour de France, Elle&Vire, Entre mont, Kiri chef France Frico Holland Garcia Baquero Spain Bouton dor New Zealand Australian Gold Australia Millel, Denmark's Finest, Puck, Rosenborg, Arla Denmark Mainland New Zealand Coon Australia Frico HollandEight portions circle Happy Cow, Emborg Austria Buko, Miss delissy Denmark La vache qui rit FranceFlavored Cheese Mama Lucia AustraliaMozzarella Coon Australia Arla Denmark Perfect Italiano, Millel AustraliaParmesan Marca Piña, Old Fashioned Foods, Kraft, Chianti USASpreadable Puck Denmark Lemnos Australia
Source: Supermarket survey, May 2008
Generally, natural and processed cheeses are two categories of cheese. Natural
cheese is one that is made from milk or skim milk, in contrast to processed cheese, cheese
spread and the like. Cheese is one of the most versatile and nutritious food. It is most
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frequently used by homemakers in meal planning and preparation. It is typically used for
sandwiches and appetizers, and can be grated as toppings on soups, spaghetti and pizza.
From the simple consumption to growing into a larger and more complex market,
the Philippine cheese market has evolved over the years. This is supported by the wide
variety of product offerings in the market—from the low-priced long shelf spreads to
specialty cheese for the food industry and food services.
The country’s double income households highly support the purchasing power of
Filipinos for cheese products. It resulted to the increase of Filipinos preference for dining
out, food delivery and purchases of convenient easy to prepare foods. This can further be
observed in the proliferation of fast food chains, coffee shops, take out counters and food
deliveries nowadays.
For local players in the industry, it has been observed that the tactic of using
smaller pack sizes is becoming effective as it encourages more users, considering that
Filipinos, while brand conscious, are also price sensitive. Even the popular brands, which
are commonly from other countries, have adopted this scheme and thus making their
products more saleable. The small-pack strategy is most likely the major factor driving
value growth among local manufacturers since it encourages more frequent and less-felt
purchases among consumers.
To complement the smaller pack sizes, companies have set their sights on small
but numerous traditional retail outlets, particularly sari-sari stores which highly offer
convenience along with the affordability for the buying experience of the end-consumers.
In the global market, it is forecasted that the consumption of cheese will be
growing by 2% annually ad this is a great news to importers as well as local players.
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There is a very high potential for growth as the main importing regions in Asia, including
the Philippines, where local production cannot cope up with the growth in consumption.
Whey
Whey is a by-product of cheese making. It is formed when the curds separate
from the milk or cream. After the cheese curds are formed, the remaining liquid is called
whey. This liquid is watery and thin. Sometimes whey has a tinge of bluish color, but this
depends on the quality and type of milk used.
Whey is an excellent source of protein, vitamins, minerals, and lactose. It is the
base of many protein drinks for athletes or others wishing to build or repair muscle
tissues. Whey is also an important supplement for those who have limited mobility in the
limbs, as it contributes to the prevention of atrophy of muscular cells. It is also used in
pet foods as a source of protein and fats. It contributes to a healthy coat and proper
muscle development.
In the United States, whey is causing a problem in their waste disposal facilities.
Of the 14 billion kilograms of whey produced in 1973, only 6.9 billion kilograms has
been reprocessed, while most of the other 7 billion kilograms were disposed off as waste.
As a result, cheese manufacturers as well as dairy scientists and the dairy industry
have been put under pressure once again to stop dumping whey into streams and
municipal sewage systems, due to growing concern over pollution and environmental
control. Thus, researches are done to come up with a way to utilize, rather than throw off
this by-product. The most logical use then would be to return the whey to the human food
chain in a palatable form, in the light of growing global food shortages (Holsinger et. al.).
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Whey has been seen a simple by-product of food manufacturers, particularly
cheese manufacturers, for a long time already. But nowadays, whey industry is a
promising venture as it increasingly taps into the potential health and functional benefits
of the protein (Holsinger, et. al.).
Ricotta
Technically, ricotta is not a cheese at all, but a cheese by-product. Its name,
ricotta, means cooked again, an obvious reference to the production method used to make
it. Ricotta is made from the whey drained from such cheeses as mozzarella, provolone,
and other cheeses. It is a fresh, soft, snowy white cheese with a rich but mild, slightly
sweet flavor. The texture is much like a grainy, thick sour cream. Ricotta is naturally low
in fat, with a fat content ranging from 4 to 10 percent. It is also low in salt, even lower
than cottage cheese. Since ricotta is made primarily from lactose-rich whey, it should be
avoided by those who are lactose-intolerant (http://homecooking.about.com).
Ricotta is a favourite ingredient to Italian desserts such as cheesecakes and
cannoli. In many different Italian desserts, ricotta is also incorporated to chocolate
shavings, cinnamon, sugar, honey and orange flower water. Commonly, it is used in
savory dishes, including manicotti, lasagna, and ravioli (APPENDIX 4). Recipes can be
easily downloaded from the internet for every interested individual and these helps the
increasing marketing efforts for ricotta (APPENDIX 8).
The Italian way of producing the ricotta is said to have the better taste and quality
as it is originally made from whey. The acidity gained at the start of the production, as
well as the whey’s composition from the previous cheese making process, contributes to
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the distinct taste of it. On the other hand, the American ricotta which is commonly made
from raw or whole milk has a mildly sweet taste.
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BUSINESS PLAN
The Product
The venture is going to provide the market with Ricotta Cheese made from whey
or a probable substitute, the raw milk from cow, the by-product of cheese making. It is
not a new type of cheese, but is not yet known to the Philippine market due to very low
production because of the very low yield per production. Ricotta cheese is known to have
high protein content, basically from whey, and has lower fat and salt content as compared
to other types of cheese.
Strictly speaking, Ricotta is not a cheese but rather a by-product of cheese
making, obtained from gently reheating of the leftover whey until soft curds are formed
from its residual proteins, sometimes with a little milk added. The curds are then drained,
and the delicious, white, fluffy stuff what’s left is ricotta, which actually means “to cook
again”, that is obvious in the process of coming up with the product. Moreover, ricotta
has the added bonus of being relatively low in fat, at only about 4-10 percent.
The precipitation of the curd is caused by the heat treatment, combined with the
effect of the acidity. Also, being exposed to a high temperature of about 90-95 degree
Celsius, results in the denaturation and disulfide bonding of some of the whey proteins,
particularly b-lacto globulin. The curd formed is composed of both casein and whey
proteins, unlike the usual curd which is mainly casein. Ricotta’s textural properties also
differ from the other cheeses that makes use of rennet to form the curds, since it is loosely
aggregated and entraps air, giving the curd a relatively low density making it float on top
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of the cheese vat, that is a property characteristic of ricotta cheese making. It is necessary
to ensure that the curd floats and do not sink with the proper control of the pH and the
level of the agitation. After collecting the curds, it is then allowed to drain in the
refrigerator, and afterwards, it is ready for consumption. It has a high moisture content
and fairly high final pH, and accordingly a short shelf life. Inclusion of the whey proteins
into the curd results in both a high protein yield and high protein quality for ricotta
cheese. To add sensory appeal, mild flavor, and nutritional value to foods, ricotta cheese
is used as an ingredient. Both part skim and whole milk versions of ricotta cheese provide
a source of calcium, phosphorus, zinc, riboflavin, vitamin A and vitamin B12 in each
serving. Ricotta cheese is a soft and creamy cheese with a light texture and mild, slightly
sweet flavor, with its color, commonly off white (University of Guelph’s Dairy Science
and Technology).
In the United States, ricotta is generally made with a combination of whey and
whole, low-fat, or skim cow's milk
(http://homecooking.about.com/cs/cheeseinformation/a/ricotta.htm). Adding skim milk
powder can also be done to further lower the price of production of ricotta, without
compromising the nutritional value of it, however, for quality’s sake, the technopreneur
does not want to resort to this activity.
This product will be produced with the assistance and support from Dairy
Training and Research Institute-UPLB.
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The Market
It is the technopreneur’s aim to tap the potential institutional buyers in Los Baños,
Laguna, that includes coffee shops, restaurants and hotels. However, the technopreneur is
not limited to selling to this segment alone. The product can also be sold to individuals
who are health conscious or those who are fond of cooking, particularly Italian dishes and
pastries. The scope of marketing is still limited to the Los Baños market since the
production is still being adjusted to the yield for this type of cheese production.
Product Value
The venture is going to provide the market with a high quality Ricotta Cheese
made from 100% cow’s milk, and is made to cater the institutional buyers as well as the
individual customers. This is a movement away from the traditional way of producing
ricotta from whey because of the unavailability of the source of whey and its very low
yield that may not cause the venture not to be profitable.
Ricotta is a highly perishable product and has a safe assumption of seven days
shelf-life only, thus the products will be made fresh and delivered to the customers every
after the production process. This will ensure the quality of the product up to the end
consumers. In addition, the product has no preservatives added to ensure a product with
consistent quality and that is highly nutritious.
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Logistics and Sourcing of Raw Materials
There is a high demand for raw milk as well as the processed milk in Los Baños,
Laguna due to the budding white cheese processors from the area as well as nearby towns
and its visitors. This causes uncertainty in the supply of milk for every processor, thus,
the technopreneur decided to situate her processing plant in Lamot 2, Calauan, Laguna
where there is a more stable supply of raw milk, the Katipunan ng Kooperatibang
Maggagatas, Ink. (KKMI) and Hacienda Macalauan known to be located in the area.
The technopreneur took advantage of the reduced cost of placing the production
area near the source of raw materials. Cow’s milk is a bulky raw material, and thus the
reason why the technopreneur decided to choose the location. This will be realized best
when the production is at full blast, having up to 50 litres of milk per production.
KKMI, the current primary source of the raw milk for ricotta production is having
a daily excess of supply from the farmers, which can be bought by walk-in customers,
and such is the set-up for the technopreneur at present. There is no fixed set of orders
placed by the technopreneur, since there is no consistent production yet. But, it is
expected to be a better way to have a sure reservation for the supply of milk from the
company, to avoid the problems caused by sudden loss of supply.
Other raw materials like salt and anhydrous acetic acid are obtained from the
supermarket and Nikolai Enterprises respectively. The order for anhydrous citric acid is
needed to be placed one week before the production date so as to receive the ingredient
on time for production. This is because the management of Nikolai still has to purchase it
from Manila.
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Processing Area for
Ricotta productio
n
BIOTECH (Toll Process for ricotta collection)Suppliers of Whey(KKMI)
Packaging at DTRI (Toll Process)Institutional Buyers
Funding from PCASTRD, UPLB & PCARRD-DOSTEnd Consumers
Business Model
Figure 2. Business Model of Ricotta Cheese (for business plan last summer 2010).
The technopreneur currently had a tie-up with a medium sized dairy products
distributor and cheese maker, the KKMI, to ensure the supply of the raw material for
ricotta production. This will then be transported to the production area to be acidified and
then cooked. In the view of low yield in the ricotta production, it can be a better way to
collect the ricotta with the use of an evaporator in BIOTECH, to reduce the losses in the
collection. For the packaging, it will be toll processed at DTRI, UPLB. The institutional
buyers including restaurants, hotels and pastry shops will then be the main market of the
ricotta. There is a need for the market to be made ready prior to the production so that
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they can at once receive the product made and avoid losses as well. It is a critical thing in
this venture since the product has a short shelf-life, about one to two weeks. In the long
run, ricotta will also be made available for individuals who are into preparing delicacies
that makes use of ricotta. The institutional buyers will then be the ones to add more value
by adding it to delicacies that will be made available to end consumers.
Market Entry and Growth Strategy
It is a big challenge for this venture to enter the market since Ricotta will be
newly mass produced in the Los Baños market. Intense marketing should be applied to
make the product known to the market. Marketing in social networking sites are helpful
and costs less (APPENDIX 5&6). This is a good start based on the technopreneur’s
preliminary marketing done on May 2, 2010. Some friends showed interest on the new
product and would like to try it already. Also, a friend of the technopreneur was able to
taste the trial production on May 5, 2010. With this, she was able to let her officemates
know of the upcoming start up of the business, and thus means a sure market for the
technopreneur. Word of mouth may also be a good way of marketing. It is then critical to
maintain the quality of the product so as to ensure the chance of buying and repeat orders
of the market. The product’s quality is measured by its consistency and taste. Growth is
expected to follow as the quality of the product is standardized and thus gaining a lot of
new and repeat customers.
The formal start-up occurred in July 2010 when the initial investment from the
technopreneur’s parents is received. Her parents allowed the technopreneur to borrow
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10,000php at first then 2,500php within the semester taking into consideration the need
for her to finish her studies this semester. They are willing to lend her the money also for
the fact that they are supporting her on her business ideas.
Market Research and Analysis
Market Definition
The main market for this product was the institutional buyers in Los Baños,
Laguna. These were the restaurants, pastry shops and other similar ventures that has
cooking or baking among its processes. It includes Bonitos, Micha’s Pastry Shop,
Faustina, Black & Brew, and Boston Cafe. They were seen to be the potential users of the
product since they were the ones who further add value to their products before selling it
to the end consumers. Given the ricotta is a health food, with lower fat and salt content
than that of the cottage cheese, its nearest resemblance, it is positioned together with the
other high-end cheese.
Among institutional buyers, the main target market of the enterprise was the
restaurants and other shops that are into cooking high-end foods especially Italian dishes.
Among the end consumers, the main targets are those who are health conscious since this
was one of the important attribute of consuming ricotta cheese.
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Research Methodology
Ricotta Cheese is a new product in the Los Baños market that is why there is a
need for an initial market study to know the acceptability of the product.
First, store check was done to know how the product is positioned in the market.
Results showed that ricotta is not available in the Los Baños supermarkets and groceries.
DTRI-UPLB, however, is producing a very small amount of ricotta, mainly due to the
very small yield of 1 to 3% every production if the main raw material used was whey
from manufacturing other types of cheeses like mozzarella and white cheese. Production
of ricotta utilizing cow’s milk is then considered for the improvement of production as
well as the profitability of the venture.
Ricotta cheese is unavailable in the Los Baños market. It is only in specialty
cheese’s stores, hotels and restaurants in Manila that the Hacienda Macalauan distribute
their specialty cheeses like ricotta, mascarpone and mozzarella.
Competitor Analysis
The only direct competitor identified from the store check done, was Hacienda
Macalauan. It is a dairy farm and processing company found in Calauan, Laguna. Gatas
Tisoy is the brand mainly used for the product lines the Hacienda Macalauan has. This
company focuses on producing milk and milk products which are mainly produced for
the institutional buyers including coffee shops, hotels and restaurants.
Hacienda Macalauan offers milk products that are processed in its own plant
source, its raw milk from its own milking cows whose breed is Australian Freshian
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Sahiwals. Among the product lines of the company are fresh milk, low fat milk, non-fat
milk, chocolate milk, white cheese, ricotta cheese, cottage cheese, low fat yoghurt, non-
fat yoghurt, full cream yoghurt, flavoured yoghurt, sour cream, whipping cream and
liquid cream. Their ricotta cheese is packed in cups of 200grams or in 1 kilogram, and
costs 80pesos and 400pesos respectively, if bought by walk-in customers at their plant at
Calauan, Laguna. However, if the product is purchased at their distribution outlets, the
price is given at 90 to 100 pesos.
Hacienda Macalauan’s label for its products includes the company’s name and
logo. The logo is a picture of three Australian Freshian Sahiwals in a green pastureland
(Figure 3). The label in some products contains the weight or volume of the products and
the other products offered by the company. The expiration date for every item is always
included in the label to ensure the safe consumption of the products by the consumers.
Ricotta is one of their products and is produced only upon receiving orders from
the customers, due to the product’s very short shelf-life of one week, as compared to
other products’ shelf-life of two weeks to a month. Sometimes, Hacienda Macalauan’s
ricotta cheese is available for walk-in customers in their main plant at Calauan, Laguna.
26
Figure 3. Ricotta Cheese of Hacienda Macalauan
There are however many other competitors for Ricotta cheese. One direct
substitute for this product is the cottage cheese. Cottage cheese has the nearest
resemblance to Ricotta cheese in terms of physical characteristics. It also has the same
use and is also readily available in supermarkets under the brand name of Nestlé. The
technopreneur found it a challenge to compete in terms of positioning the product. The
two has almost the same use and users, thus Ricotta cheese, not being readily available in
supermarkets when needed, can be easily replaced by Cottage cheese. However, in terms
of health benefits, Ricotta cheese is said to have lesser salt and fat content than the
Cottage cheese, making it still the better choice.
Aside from Cottage cheese, the other types of cheeses like processed cheese,
Parmesan, Mozzarella and Cheddar cheese are also substitute to the Ricotta cheese. These
can be also used as cheeses for pasta-based delicacies. They are also readily available in
the market and can be bought at reasonable prices.
27
The technopreneur considered two components that highly affect the current
position of the ricotta cheese at present. These two were the price and the availability of
the product. Consumers highly value these two and find it the main reason to change
preferences. The availability is a critical thing for the cheeses since the product can be
easily replaced when unavailable making the brand inferior to others.
Hacienda Macalauan’s ricotta cheese, being the direct competitor for Dairy
Land’s ricotta cheese has higher price when placed in distribution outlets and is less
available because the ricotta cheese they produce is only available in Manila distribution
outlets or at their plant at Calauan, Laguna. For the market of ricotta cheese in Los
Baños, Dairy Land’s ricotta cheese can be more affordable and available for use.
Figure 4. Product Space Map of Ricotta Cheese Brand based on Availability and Price.
28
PRICE
AVAILABILITY
HACIENDA MACALAUANDAIRY LAND
Market Size
The technopreneur started marketing the ricotta cheese to individual users. They
exhibited their eagerness with the product and told the technopreneur about their interest
to buy as soon as the product is available for sale. The technopreneur was able to
interview five individuals who have already used the product and a group of fifteen who
have heard about ricotta for the first time.
The group of fifteen individuals were composed of mothers working in an office
in IRRI and young professionals working in Los Baños. They may have been attracted to
the new product they have heard, that is why they were willing to try it. With this
premise, the technopreneur bear in mind that these individuals’ first impression of the
product will last and will be the basis of their future demand for ricotta. Thus, the
production to occur in early October must be primed properly so as to have the first
impression that will lead to repeat consumption of ricotta.
For the group that has been using ricotta already, they are interested for the
product, given that they have knowledge of recipes to which the product can be used. The
group is composed of three professionals who have finished studying in courses related to
culinary arts while the other two learned about the product in a restaurant where they had
their practicum. The technopreneur learned from this group that a certain recipe that will
be prepared for around eight people, demands the use of one cup of ricotta cheese, which
was approximately amounting to 200grams per recipe. Also, the said group used ricotta
frequently, and with this, the technopreneur found a new target market for ricotta, those
that have background on cooking and baking activities.
29
Computing for the estimated demand, from this group of five individuals having
the demand for ricotta, there can be roughly 200 to 300 grams of ricotta to be used by
each individual per instance.
Upon conducting informant interview, the target market that was composed of a
group of coffee shops, restaurants and pastry shops in Los Baños, were found to be non-
users of ricotta cheese. They have heard about it, but they are not using it because of its
unavailability in the market. The technopreneur then tried to describe the product to them
and told them the use of ricotta, but only one prospect institutional buyers showed
eagerness to try the product. The others, even though they are offering menus with which
ricotta can be used, opt to stick with their current recipe.
The institutional buyers already have their set of recipes which they offer for sale
to their customers and this entails their preference for an existing brand. Introducing them
the ricotta cheese becomes difficult as they are already hesitant to try new ones, not
knowing what to use it for. This is the big challenge found by the technopreneur and will
then be the main focus of this venture since they will direct the progress of this venture.
The technopreneur, however, was not very discouraged with this response as she
plans to continue seeking for institutional buyers outside Los Baños, when the production
is more stable.
30
Market Strategy
It is important to have a sure market in this venture due to the short shelf-life of
ricotta. This will be made possible by going into a contract with the institutions and areas
for distribution. This will reduce spoilage of the product and ensure the continuous
processing of the product. It will be helpful to go into marketing in the social networking
sites as well. It will be a cheap but a possible source of other end users of the product.
Upon applying preliminary marketing strategy last summer on the social networking
sites, the technopreneur was able to gain about twenty individual buyers. As for the
institutional buyers, the technopreneur had difficulty as to convincing them to use ricotta
since they have been existing and preparing their menus for more than a year already and
has their fixed recipe already. Only one prospect institutional buyers showed eagerness to
try the ricotta cheese on their food preparations.
This was seen to be a challenge to the technopreneur regarding how she will
convince these institutional buyers in utilizing the product. As a response to this she
prepared a brochure to be distributed to the other untapped institutional buyers, and a set
of recipes that customers can easily prepare using the ricotta cheese. In the brochure, the
technopreneur included the meaning of ricotta, its uses, its origin, and a “did you know?”
part telling a fact about cow’s milk. With these materials, the technopreneur believes that
there will be better knowledge of the product and this will give them the urge to try the
product and try the recipes on their own. This brochure can be passed on to other people
and can then be a medium of marketing to others as well. Posters will also be posted in
dairy products distributors’ areas so as to make the market aware of the product. Also, the
distributors of dairy products can also be asked if the technopreneur can sell ricotta
31
cheese along with their line of products as soon as the product can be sold to its target
market. The social networking sites are also means for the increase in awareness of the
product’s users. The technopreneur made a move already by utilizing Facebook as well as
Yahoo Mail in order to tap some of her friends who belong to the target market for the
product. This will further be used as the main marketing avenue as the number of
consumers for the product increases.
Competitive Strategy
It is known that the ricotta production has a low yield in its production. However,
the use of The National Institute of Molecular Biology and Biotechnology (BIOTECH)’s
evaporator may enhance the yield and thus increase the ricotta produced. This will then
sustain the market’s need for the product. Also, a tie-up with large cheese manufacturing
companies will aid the need for the whey as a raw material.
There is also an opportunity to learn the process of producing ricotta with the use
of milk combined with whey, in such a way that the venture will not be dependent on one
raw material alone. This may then result also to adding other sources of income, like
producing other types of cheeses, through backward integration.
Competitive Advantage
Ricotta makes use of whey, the by-product of cheese making as its main raw
material. This made it a lot cheaper and easier to produce than other cheese products.
Ricotta can be produced and packaged within 12 hours, unlike that of the cream cheese
production which takes about two days of processing up to packaging. Also, starting-up a
32
ricotta cheese business requires less capital than that of the other types of cheeses. This is
because of the lesser technicality in the processes of making ricotta.
Another advantage was the possibility to place the processing plant for the ricotta
near the source of its raw materials, thus reducing the costs on transporting whey.
Marketing
The technopreneur chose to do direct marketing as well as personal selling since
the product is new to majority of the Los Baños market. This was done due to lack of
physical facilities for distribution at the start-up of the business. However, plans for the
future include having a distribution outlet where the ricotta, along with other dairy
products that the technopreneur plans to produce as the start-up continues to improve.
The ricotta was packaged in plastic tubs which can contain 200grams each (Figure 4).
Ricotta as a high-end cheese should be marketed in the high-end consumers as well.
Social networking sites (Facebook, Plurk and Yahoomail) were also utilized as these
were cheaper, more accessible and easier way to connect with the product’s prospective
market. It also occurred that by word of mouth that some more are added to the market.
Market penetration was seen as the best strategy to be applied in marketing the
product because it is not that popular yet. The price of the product needs to be lower than
that of the existing ricotta cheese in the market. Hacienda Macalauan priced their ricotta
at 80pesos per 200gram tub for walk-in customers at their plant in Calauan, Laguna; but
sell it at 90 to 100 pesos on their distribution outlets. The technopreneur decided to set
her price at 80pesos per tub, 10pesos lower than its direct competitor. This pricing
33
strategy was employed only in the last production run, since there is confusion with the
prices of the direct competitor at the beginning of the study. Along with the pricing
strategy employed, the technopreneur did intense advertising by distributing brochures to
the prospect market and future plans includes putting posters on dairy product
distributors’ outlets.
The product label (Figure 4) was conceptualized only at the end of September and
this was to replace the previous label used from June to August (Figure 5).
Recipes will be distributed to target market in order to create a demand for the
product (APPENDIX 8).
Figure 4. Current sample label for the ricotta cheese.
34
Figure 5. Previous sample label for the ricotta cheese.
Product Development
Development Status
Ricotta production has only around 1% yield based on the trial production done by
the technopreneur at DTRI-UPLB. This issue of the ricotta production was dealt through
utilizing cow’s milk in producing ricotta, which eventually caused the increase in yield.
Further researches on how to standardize the production was being studied so that the
technopreneur can efficiently utilize the resources available.
35
To ensure the product’s consistency in terms of the product quality, control areas in
the production area will be closely paid attention to and will be standardized.
Current Product Development Goals
The technopreneur became successful in increasing the yield of ricotta production
and this will be the foundation of further improvements in the production processes. The
standardization of the activities in the production area will be best realized through
applying a line flow strategy. Since the venture only produces this type of cheese,
applying backward and forward integration was considered.
Backward integration can be done by producing mozzarella cheese, the type of
cheese that can produce the whey which was known to produce a better ricotta out of it.
This in a way, changes the focus of the business since the main product will be
mozzarella cheese. This is seen to be a more profitable one since the product was already
kown and there can be more users of this type of cheese. Also, the whey produced can be
used to still produce ricotta.
On the other hand, using the ricotta made from cow’s milk into producing end-
products like cheesecakes, cannoli or other delicacies that uses ricotta, is the forward
integration. The ricotta adds to the mild taste of the product like any other cheeses,
however, the healthy side of ricotta makes the difference. Ricotta has less fat and salt
36
content unlike the other types. Doing forward integration, will reduce the spoilage of the
product and in a way create a new way to retrieve the capital from producing the ricotta.
Also, this will also help encourage the institutional buyers learn of the ways to utilize the
ricotta cheese and cause them to buy the product.
Financial Plans
Table 2.Cost of capital when producing ricotta at DTRI, UPLB.
Fixed Capital(processing done in DTRI)
ItemCost per unit
Units needed
Cost (in Pesos)
Containers of Whey (capacity: 40L) 150 3 450Cheese Cloth (per yard) 10 3 30TOTAL FIXED COST 480
Working Capital for a 30-day period(processing done in DTRI)Whey (per Liters) 1 2600 2600Salt (per kilogram) 10 1 10Packaging (Toll Processed at DTRI--200grams per tub) 5 150 750TOTAL WORKING CAPITAL PER MONTH 3360
OVERHEAD COSTS (PER MONTH)Transportation 3000Labor (2persons to work @ 100php per day for 22 days) 4400Advertising 300TOTAL OVERHEAD COSTS 7700
for 1 month
for 1 year
Total fixed capital @ 8% depreciation per month 39 468Total working capital per month 3360 40320
37
Total overhead costs 7700 92400Total cost of production per month 11099 133188
For 1 Month For 1 Year
SALES (150 tubs @ 150 pesos each) 22500 270000Less: Total Cost of Production 11099 133188 5% Loss(from sales) 1125 13500GROSS INCOME 10276 123312
Percentage Mark-up= 45.67%
Table 3.Cost of capital when producing ricotta in an owned plant.
Fixed Capital(own plant)
ItemCost per
unitUnits
NeededCost(in pesos)
Large Casserole 3000 2 6000Kalan(Heavy Duty) 1000 1 1000Thermometer 150 1 150Sifter 100 2 200Containers of Whey (capacity: 40L) 150 3 450Cheese Cloth (per yard) 10 3 30Weighing Scale 200 1 200TOTAL FIXED COST 8030
Working Capital (for a month or 30-day period)
LPG 700 1 700Whey (per Liters) 1 2600 2600Salt (per kilogram) 10 1 10Zonrox (per Liter) 50 1 50Packaging (Toll Processed at DTRI--200grams per tub) 5 150 750TOTAL WORKING CAPITAL PER MONTH 4110
Overhead Costs(per month)
Rent(rate at Calauan, Laguna as of May 7, 2010) 3500
Transportation 1000Labor(2persons to work @ P100 per day) 5200
38
Advertising 250
Electricity 500
Water 300
TOTAL OVERHEAD COSTS 10750
for 1 month for 1 yearTotal fixed capital @ 8% depreciation per month 643 7716Total working capital per month 4110 49320Total overhead costs 10750 129000Total cost of production per month 15503 186036
For 1 Month For 1 YearSALES (150 tubs @ 170 pesos each) 25500 306000Less: Total Cost of Production 15503 186036 1% Loss(from sales) 255 3060GROSS INCOME 9742 104664
Percentage Mark-up= 38.02%
The two financial statements above show the percentage mark-up in the
production of ricotta in two different situations: production in DTRI, UPLB and in an
owned plant. The difference in the two values of mark-up is caused by the lack of fixed
capital investment in the production at DTRI, UPLB. It is also seen here that the losses
decreases in the owned plant as it is assumed that production and marketing is improved
and is given a lot of attention to. However, the low percentage mark-up can be forecasted
to increase in the future as the cost of the initial investment is being obtained after a
certain period. This will then be used as additional working capital to improve the
efficiency of the production.
39
The costs of capital on two different scenarios computed above were based on the
estimates provided by Prof. Olive Emata last summer 2010, during the preparation of the
business plan. These, however, did not happen to the production runs done by the
technopreneur. It was because most of these estimates had over or under estimation.
Among the two choices of production areas, the technopreneur highly recommend
having an own plant in order to have a regular production processes. This venture
requires more flexible production activities. Also, this venture can be a part-time
business, thus, an owned plant can be a better place as it has the convenience one wants
to have.
The production’s break-even point, based on the production runs, is the
production utilizing between 15 to 20L of raw milk along with the 10% citric acid
coagulant.
*The above prepared financial statement is only for ricotta made of 100% whey.
**The financial statements for the ricotta cheese made out of whey are available at
APPENDIX 1.
40
DESCRIPTION OF MAJOR ACTIVITIES ANDEXPERIENCES OF THE STUDENT IN ORGANIZING
AND STARTING THE BUSINESS
Business Opportunity Identification/ Business Idea Generation
It was in the Abm180 class of the technopreneur last Second Semester of S.Y.
2009-2010 when she got interested in attending a Short-Course Training last Summer
2010. The technopreneur became interested in the ricotta cheese production since the
proposal she made for ABM 180 and that which she was supposed to take in the regular
Special Problem under the course, was dealing with whey also. Also, Prof. Olivia Emata
strongly suggested the product as it was one of the products she has been developing at
DTRI-UPLB.
The training was held in the CEM Lecture Hall, a place that was very conducive
to awake creative minds and further on extract ideas for the business start-ups this 1 st
semester.
The discussions by different technology developer and the CEM faculty members
offered a lot of important ideas so that the start-ups can be more realistic. The consultants
41
of each TLP helped a lot especially on the Technical Aspect to enhance the know-how of
the technopreneur’s chosen field.
The technopreneur came up with a business plan before the short-term course
ended and this was presented to a set of panellists who contributed constructive criticisms
on the study for further improvement of the business start-up.
One thing that encouraged the technopreneur to pursue this study was when Prof.
Emata stated that ricotta was one of the high-end cheeses that have the potential of being
highly valued product in the market as it was not yet produced in high volumes for the
Los Baños market. It was not popularly known in the Philippine market since there are
only a small number of producers who ventures into Ricotta production in the country
and along with that was the small number of consumers of this product. According to the
store check done, ricotta cheese was not sold in the groceries around Los Baños. Also,
market study has not been done on the area yet, thus, this study came up to have the start-
up in commercializing the ricotta cheese.
42
NETWORKING & NEGOTIATION WITH UPLB, AFNR UNITS, LGU AND GOVERNMENT AGENCIES,
SUPPLIERS, FUND PROVIDERS/ INVESTORS, TARGET BUYERS, OTHER BUSINESSMEN, BUSINESS MENTORS, OTHER TECHNOLOGY &
MANAGEMENT EXPERTS
The AFNR Training last April 19-May 8, 2010 helped a lot in the technopreneur’s
formulation of ideas and concepts for the business start-up. The training became a
refreshing course especially for the basic functions of management wherein the business
start-up can effectively arise from. The speakers, who were the technology and
management experts at the same time, became a credible source of knowledge for
everyone in the training. Their experiences as developers or entrepreneurs were very
valuable inputs to the technopreneur’s mind and were source of strategies for the business
start-ups this semester.
Under supervision of DTRI-UPLB, specifically by Prof. Olivia Emata, the
technopreneur learned about the production process of the ricotta. She asked help from
DTRI regarding the needed improvement as well as technicalities in the production so as
to ensure the quality of the product.
43
The technopreneur experienced dealing with the main supplier of whey
supposedly, but then turned out using cow’s milk, mainly due to the very low yield of
ricotta from whey. The change of raw material came about from the researches done
showing that the use of raw milk highly enhances the yield, without compromising the
quality of the product.
KKMI-Calauan is an established enterprise near the area where the technopreneur
chose to produce her product. The close supplier tie that the technopreneur had with its
main source of raw materials has been a very important component of the venture
especially in having a sure supply every time it was needed. Also, valuable suggestions
by the supplier regarding the start-up were also noted as important inputs to the
enterprise. Proximity to the supplier of the raw material was supposed to reduce the cost
of the production processes, however, it was not yet realized since there was a very
minimal number of production runs and the rent for the apartment in Calauan was not
maximized. The technopreneur still has to manage the financial aspect of the venture
more rigidly so as to have a consistent production and thus improve the profitability of
the business. The technopreneur also learned to deal with the people near the production
area. There was unexpected assistance from the immediate community that made the first
production run in the area successful.
In the first week of the production, that is 2nd week of July, the technopreneur
went to Calauan to look for a space for rent, wherein she can establish the production
plant of ricotta production. Searching for a space available in a strange place was
difficult, but proper dealing with the people around made it a good experience for the
44
technopreneur. She came to deal with many individuals who helped her find a place
suitable for her study.
The technopreneur finally found a house that costs 1800pesos per month through
the help of a resident of Lamot 2, Calauan, Laguna, wherein the KKMI was situated. The
people around the apartment were not difficult to deal with; thus, it became easier for the
technopreneur to start production on her 3rd day in the area. Hiring a labourer was an
impossible idea yet due to lack of capital so the technopreneur tried to do the production
alone, but then, the residents in the area, upon knowing that the technopreneur was doing
the enterprise for the completion of her academic requirements, offered a lot of help
including transporting the raw material for free.
To have an idea as to how the market size for the product will be, the
technopreneur did an informant interview among institutional buyers and individuals in
the area of study. Among the two groups of informant, the institutional buyers were more
difficult to deal with. It seemed that this group was more attached to their current ways of
preparing foods, and were not easy to encourage regarding the use of the ricotta cheese.
This made the interview more focused on the individual buyers.
The technopreneur had lack of consultation time with Prof. Emata during July to
August, because of her travel to the United States.
The technopreneur then resorted to sending electronic mails of the survey forms
to some friends who underwent culinary studies as well as those who responded to have
used ricotta, when the technopreneur was still starting with the study. Also, the
technopreneur searched for users of ricotta from other countries through the use of
networking site like Facebook and search engines like Google. Among the respondents
45
gained was William Roger, who was from the United States. He was using ricotta for a
long time already and was very familiar to the product. He even thought the
technopreneur of easier ways to conduct the production of ricotta, some of which were
not mentioned by Prof. Emata. Also, he suggested some sites that were very helpful as to
searching for recipes using ricotta which were easy to follow. These were used in the
recipes prepared by the technopreneur, which she planned to suggest to her current and
future customers in order to encourage them to have repeated purchasing.
Another helpful respondent was a Swedish named Erik Kotro, an owner of a
restaurant in Sweden, who added some more input to the technopreneur’s knowledge
about the products’ uses. He even encouraged the technopreneur to pursue the venture
even though he also knew the challenges faced by it, including the low yield in the
production process.
Financing the Business
Funding the enterprise seems to be the most critical part of the venture because
this delayed the production of ricotta for almost a month. The supposed production in 2 nd
week of June turned out to be on the first week of July. The expected funding from
Philippine Council for Advanced Science and Technology Research and Development
(PCASTRD) for the project did not seem to be available when it was needed, thus the
urge of the want to graduate this first semester forced the technopreneur to loan her
capital from her parents who were both public school teachers, and were able to loan
from the Government Service Insurance System (GSIS). The amount of 10,000pesos was
received on the third week of June and with this amount, the technopreneur purchased all
46
the needed fixed investments. To assure that the purchasing was worthwhile, the
technopreneur did a lot of canvassing as to which ones will cost her the least, considering
the quality of the materials. She eventually found the lowest price items needed in the
start-up in some stores within Los Baños. Upon completing the needed materials, she
immediately started producing ricotta the following week. (See APPENDIX 2)
The production was then stopped due to the financial constraints, and the
technopreneur tend to spend on other priorities including an educational trip in one of her
major subjects. This led to a stop in the progress of the start-up. The technopreneur
waited for the financial support from PCASTRD. However, it did not arrive until the first
week of October. This resulted to another batch of borrowed capital from the
technopreneur’s parents, which was amounting to 2500pesos.
After months of waiting for the financial support, the first cash advance did arrive
on the first week of October and a production run will still be done after some more
consultation with Prof. Emata, who just arrived in the country on the last week of
September from a trip to the United States.
Production Runs
Below are the lists of ingredients, utensils/instrument/other materials and
procedures that were needed for the production of Ricotta Cheese as directed by Prof.
Olivia Emata . (See APPENDIX 2)
Ingredients:
20L Cow’s Milk
47
2 & 1/3 cup of 10% solution of Citric Acid
Refined Salt(1% of the weight of the yield of ricotta)
Utensils/Instruments/Other materials:
1 stainless casserole(with capacity of 35L)
1 stainless laddle
2 stainless strainers
Cheese cloth
1 medium sized container for whey
1 laboratory thermometer
1 heavy duty kalan
1 weighing scale
1 LPG
1 stainless steel ladle
30 tubs (200g and 100g packs)
Procedure:
The technopreneur utilized the home-based way of producing the ricotta cheese.
This entails the use of raw/whole milk, citric acid/apple cider vinegar/lemon juice/rennet
and a little amount of salt.
The technopreneur preferred the use of the 10% citric acid solution as this was
cheaper and easier to prepare than the other coagulants. The 10L raw milk was first put in
a stainless casserole and then heated up to 93-95°C. One cup of 10% citric acid solution
was then poured in and stirred slowly for 10-20seconds. Small flakes formed in the milk
and the separation of small curds occurred after a few minutes. For 10 minutes, the curds
48
were allowed to rise and form from the milk. Afterwards, a ladle was used to collect the
curds and was transferred to a colander lined with a cheese cloth. Slowly, the curds will
drain its whey up to the desired consistency from 15 minutes to several hours.
The technopreneur drained the curds quick when she wants it to be fresh and light
in appearance. On the other hand, she drained it on an extended period if she wants to
have a rich, dense and buttery texture in it. After wards, she placed the drained curds in
the refrigerator for complete draining.
After the desired time of draining, the technopreneur finally packed the cheese in
tubs which will hold 200g each. The ricotta was safe to be used within 10 days.
In the process, some critical points that should be paid attention closely are the
heating of milk, adding of the coagulant, collecting of the curds and the draining prior to
chilling. To ensure the safety of the product in the following areas, there was a separate
area for each step and proper handling procedures are applied. This was made to ensure
the quality of the product and the safety of the consumers of the product.
Figure 6. The Cow’s Milk transferred to the casserole for heating.
49
Figure 7. Checking the temperature while waiting for the milk to boil.
Figure 8. Apple Cider Vinegar used as Coagulator
Figure 9. Putting the medium for coagulating ricotta
50
Figure 10. Curds formed after pouring the coagulator.
Figure 11. Curds are scooped and placed in a strainer.
Figure 12. Ricotta draining on a cheese cloth.
51
Figure 13. Salt weighs 1% of the ricotta gathered.
Figure14. Salt being mixed to the ricotta thoroughly.
Figure 15. Ricotta ready for packaging.
52
Figure 16. 200gram ricotta, with the old label.
The following table is the summary of the production runs done by the
technopreneur during the business start-up.
53
Table 4. Summary of Production Runs.
IngredientsProduction
CostYield
(g)
Assumed Revenue @ 80Php/ 200g tub
(Php)
Gain Loss Comments/Problems
1st 20 L Whey, salt
0 200 80 Very Low Yield, 1% only
2nd 30L whey, salt
0 350 140 Very Low Yield, 1.5%
only
3rd
15 L raw milk, salt, 10% citric
acid solution
672 1600 640
Lack of additional labor led to small amount of collected ricotta
4th
15 L raw milk, salt, 10% citric
acid solution
822 1950 780
There is an additional labor but the same volume of milk used still resulted to a loss. Increasing the volume of milk may increase the profitability of the production.
54
5th
6 L Whole Milk, Apple Cider
Vinegar, Salt
468.75 500 200
Whole milk costs more than the raw milk thus the cost went high. Also, apple cider vinegar is not a good coagulant due to its pungent odor.
6th
5 L Whole Milk, Salt,
Lemon Juice
502.25 525 210
The cost of whole milk and the lemon fruit are high thus causing loss in the production.
7th
10 L Raw Milk,
Rennet, Salt
468.75 1450 580
The ricotta produced here was the nearest resemblance of its competitor. This may be the basis of the standard production process as it also resulted to a gain. Increasing the volume of milk used may further increase the ricotta produced.
Production Cost per 200g tub
Overall Production Cost
1st 0 0
2nd 0 0
3rd 84 672
4th 84.30 822
5th 187.5 468.75
6th 191.33 502.25
7th 64.65 468.75
Expected Yield (g)
(1% or 10%)
Actual Yield
(g)
1st 200 200
2nd 300 350
3rd 1500 1600
4th 1500 1950
5th 600 500
55
6th 500 525
7th 1000 1450
The first production occurred during the sample processing of mozzarella. The
process made use of 20Liters of milk and yielded about 10 to 15Liters of whey. These
were then used to produce ricotta. The ricotta produced was only 1% of the raw material.
This was given as sample to the employees at International Rice Research Institute
(IRRI). Their response gave the technopreneur encouragement because they liked the
product and mentioned that they will buy if the product will be marketed to them.
However, the technopreneur stopped for almost two weeks in producing ricotta to
spend the rest of her summer vacation in Mindoro, after the short-course training. As the
semester started, she was again given a chance to try producing ricotta. This time, the
15Liter whey was from the production of kesong puti. The yield was a bit higher, 1.5% of
the raw material. This was again given as sample to a prospective institutional buyer, but
there was no response obtained from them. Thus, the technopreneur did not know how
the 2nd production went.
The technopreneur’s first and second production was made of pure whey, the first
with that from mozzarella production and the second from kesong puti. It is on the third
to the seventh production that raw milk and whole milk was used.
During the first production, when whey was used, the ones who tested the sample
liked the mild texture and the slightly salty taste of it.
During the third production run, the technopreneur changed the raw material to
cow’s milk. The production using 20Liters cow’s milk aimed to increase the yield and to
56
know how the product will be compared to the first production. The technopreneur then
told the employees in IRRI that she was able to produce ricotta again. Mistakenly, the
technopreneur was not able to consider that the ricotta she had just produced was from a
different raw material and the outcome might be different. Eventually, the provided
samples were not of the same quality with the sample. The employees said tthat the
ricotta tasted less salty and the consistency was more firm, thus the attention of the
technopreneur was called by some of the employees.
The technopreneur thought of returning their payment since their expectations
were not met, but then, the customers, did not allow it to happen, but then encouraged the
technopreneur by telling that they understand the situation and believe that the product
will still improve. With this experience, the technopreneur learned that the product needs
to have consistent high quality, and this should be the top competitive priority of the
enterprise for it to establish itself being a high-end product.
The fourth production run was done last July 26, wherein surprisingly, the
production produced ricotta was about 13% as opposed to the expected amount which
was only about 8 to 10%. The ricotta produced was now adjusted to the customers’
preference and a sample was again provided to the employees of IRRI before the
technopreneur sold it to them. Eventually, they liked it and again they bought ricotta.
The production runs stopped for less than a month due to lack of capital and
busyness of the technopreneur with her other subjects. She resumed after her parents,
again lent her with 2500pesos.
Again, the technopreneur produced for the 6th time. This time, the technopreneur
experienced problems as to conducting the production or ricotta. The technpopreneur
57
came on a Saturday morning, at about 11am at Calauan, Laguna. She immediately went
to KKMI, to purchase 10Liters of raw milk, but was surprised to know that the milk was
out of stock. As a result, since the technopreneur did not want to waste her stay at
Calauan, she decided to utilize buy 6Liters of whole milk. Also, there was no available
anhydrous citric acid, thus, the technopreneur resorted to using the apple cider vinegar.
The technopreneur herself did not want the outcome of the production due to the strong
odor of the apple cider vinegar. She then decided to wash the curds produced with
distilled water so as to reduce the odor and after-taste caused by the vinegar. This was
one of the instructions by Prof. Emata, on how to get rid of the after-tastes of cheeses if
there was any.
The main material used in the production is the main reason for the variations in
yield. When whey is used, the yield is only around 1-3%, while the raw cow’s milk yields
10-12% of ricotta cheese.
Also, another reason for the change in yield is the coagulant used. The
technopreneur tried using four different coagulants: 10% citric acid solution, apple cider
vinegar, lemon juice and rennet. The amount of each coagulant varies with the number of
liters of raw milk used. Utilizing less than the needed amount causes the yield to be lesser
as well. This affects the production runs done by the technopreneur since the process is
not standard yet. It is somehow seen that the yield of ricotta from the production runs are
higher than expected yield, as said by Prof. Emata.
The technopreneur at first planned to tie-up with a co-AFNR student; however,
the ones who continued with the cheese processing are both on cream cheese production
and thus making it difficult for the technopreneur to source the whey needed. This then
58
resulted to the technopreneur to utilize the cow’s milk to make the production more
profitable.
Figure 17. Process Flow
59
1. Purchase
raw materials
2. Sanitize cooking
materials
3. Preheating milk
4. Wait for the
temperature to reach 95°C
5. Pour in the 10%
Citric Acid
Solution6. Let it
stand for 15
minutes
7. Start sccoping
the curds(ric
otta) gently
8. Drain the curds
in a strainer
with cheese cloth
9. Let it drip then
chill inside the refrigera
tor
10. Add salt that is 1% of
the ricotta's weight.
Marketing/ Selling activities
Introducing the ricotta cheese to the market is a very important step to do before
the marketing takes place. Providing samples to prospect customers is one way of telling
about the product to them. It is important for the technopreneur also to know the
technicalities of the product, like how it is used for food preparation, or even the
nutritional value of the cheese. As experienced by the technopreneur, being unable to
answer the questions of the customers reduces the possibility of repeat usage of the
product. Also, the consistency of the quality of the product is also needed to be
maintained, or else, the customer’s demand will decrease.
Utilization of the technology of social networking sites was applied very well to
the marketing/selling activities of products like ricotta cheese. Aside from being a fast
means of advertising, this was also less costly.
The technopreneur found it very important to obtain orders first, before the
production, knowing that ricotta cheese was a highly perishable product. This will lessen
the spoilage of the product and will entail more efficient production since there was
already an estimate as to how much will be needed by the market. However, adverse
consequence may be that the demand of others may arrive when there is no inventory
available. This will still result to a negative stigma of a small business start-up and thus
have to be dealt with properly.
60
Marketing to institutional buyers was still seen as the most profitable way of
venturing to this enterprise, even though it wasn’t realized yet, since they will have bulk
orders and were capable of sustaining the orders. The technopreneur came up with a way
to induce consumption of the ricotta cheese, and this was by providing a set of recipes
that makes use of ricotta and these recipes were easy to follow. Also, brochures would be
distributed to individuals and institutional buyers so that they will know what ricotta is.
The brochure would contain the meaning of ricotta, its uses, its origin, and a “did you
know?” part telling a fact about cow’s milk. With these materials, the technopreneur
believed that there would be better knowledge of the product and this would give them
the urge to try the product and try the recipes on their own. This brochure can be passed
on to other people and can then be a medium of marketing to others as well.
Sample recipes can be also given in order to create a market for the product
(APPENDIX 8).
61
Reconfiguring the Product and the Business Model
Traditionally, ricotta was made with whey, a by-product from cheese making, but
since this raw material was not usually available, thus, the technopreneur preferred to use
raw milk from cow.
Upon receiving the financial support from PCASTRD, the technopreneur started
her production processes at once. The main source of the raw milk was Katipunan ng
Kooperatibang Maggagatas, Ink. (KKMI) in Lamot 2, Calauan, Laguna. The
technopreneur rented a place in the area and this served as the production area. The
processing of ricotta up to the point it was packed was done in the kitchen-type apartment
and afterwards, brought to Los Baños, directly to the institutional buyers or in the
refrigerator of Sulyaw Canteen at Women’s Residence Hall which was rented by the
technopreneur whenever there was inventory on hand.
The institutional buyers were then expected to use their acquired ricotta as add-on
to their delicacies or menus for their clients.
62
Home-based processingSuppliers of Raw Milk
(100% cow’s)KKMI
(KKMI)
Institutional Buyers-Pastry Shops- Restaurants
- Hotels
End ConsumersFunding from PCASTRD, UPLB & PCARRD-DOST
Figure 18. Business Model for Ricotta Cheese
63
ASSESSMENT OF THE PERFORMANCE OF THE START-UP
Marketing
Ricotta production was seen in the early part of the start-up as a highly profitable
venture, being a new product in the market. But as the start-up progresses, problems
arise. The comment received from the employees of IRRI on how different the latter
ricotta tasted from the sample provided showed the inefficiency of the product at this
early stage of the business. This problem must not be taken easily because this may
happen again in the future if not dealt with properly. As an initial response of the
technopreneur, returning the payment of the customers may really be a solution if the
customers were already having a close tie with the business; however, this is not the case
all the time. New customers will arrive and there may be different responses as to how
the problems will arise. The technopreneur needs to be keener in managing the start-up.
Ricotta cheese being a new product in the market and a highly perishable one must really
be paid with much attention and must have a standardized process. Changing of raw
materials may be the weakness of the start-up causing it to stop from progressing at
present. The solution for the problem faced by this business must be the standardization
of the ricotta production. The technopreneur knew that when a product shows consistent
high quality, every other improvement will follow including the increase of the product’s
market.
64
Production
The line flow strategy was the exhibited type of flow strategy in this business as
the products need to be standardized and demand may become high and as the product
became known to the market. This is one of the targets of this product, to be known not
only in Los Baños, nut also in the nearby cities and towns. The five production runs
showed different cases that may be avoided by many other aspiring technopreneurs. This
serves as a reminder for the technopreneur that not all businesses where you can use free
resources are very profitable. The use of whey may cause the very slow growth of the
venture, thus, research and development must be continually employed in the product
innovation of the business start-up. The technopreneur must not have the feel of
insecurity with respect to one’s own products or offerings because this will further pull
the business down. As a manager of a business, one must believe with what he offers and
that will really attract others to it.
Personnel
The type of this business will be a sole proprietorship and this means that the
future of the venture was in the technopreneur’s hands. The ricotta production was
observed to be a very laborious work, that’s why there was a need for hiring workers who
can be of help in the production. The production usually takes about 6 to 7 hours when
65
done alone, and there was more spillage. On the other hand, when one worker was added,
there can be a more efficient process as time of production will be shorten and the
spillage will be minimized. The technopreneur already tried doing this and it really
helped in minimizing losses and making the tasks easier to facilitate.
In one of the activities in the short term course, the technopreneur was able to
discover some of her personal entrepreneurial competencies and these include
persistence, commitment to the work contract, information seeking, and systematic
planning and monitoring. On the other hand, her weaknesses involve opportunity seeking,
demand for quality and efficiency, goal setting and persuasion and networking.
She then came up realizing that she used to take advantage of her personal
competencies, then focused and made improvements on how she dealt with her
weaknesses.
Finance
As for the financial aspect, the problems were mainly for the lack of working
capital most of the time. This can now be seen as a solved problem since the
PCASTRD’s funding already arrived. This however, does not simply imply that there
will be no other problems to arise. The technopreneur must still be a wise spender of
money in order to make the venture worthwhile. The capital must be put to good use and
the returns must be effectively used to earn more. Expenses may not be avoided but wise
decision making causes a lot of difference.
66
START-UP PROBLEMS ENCOUNTERED AND THE COPING UP MEASURES ADOPTED BY THE STUDENT
There are a lot of problems met by the technopreneur in the start-up activities.
Starting from the financing aspect of the business, the project experience delays and the
enterprise just started producing ricotta for marketing on the second week of July. This is
due to the delay of the expected financial support as well as the other concerns of the
technopreneur with regards to her other academic loads this semester. The technopreneur
then asked her parent’s help on the financial deficiencies of the enterprise.
In the production function of the enterprise, the problem experienced is the very
low yield of ricotta when 100% whey is used as the main raw material. This causes very
low production and further on, a costly process for the low yielding process, not efficient
enough to be profitable. Thus, the technopreneur went into producing ricotta using cow’s
milk, and the production results in a significant increase in the yield. This particular
increase makes it possible for the enterprise to earn and be a profitable business.
Another problem that arises in the duration of the start-up is the very slow
response from the ones who take samples of the product. This may not be a big deal
though because once they approved the product, especially the individual customers; they
will be the ones who will help in the marketing of the product, simply through word-of –
mouth. The pricing strategy has encountered a lot of problems in the duration of the study
67
due to conflicting prices that the technopreneur learned about. However, it has been
decided that what will be implemented here is the market penetration pricing, by giving a
lower priced ricotta cheese to the market while intensely promoting the product to
prospective markets, especially the institutional buyers including restaurants, hotels and
pastry shops. In the long run, the product is expected to be known in a wider geographical
area and more market will be tapped for further commercialization of the product.
68
KNOWLEDGE, SKILLS, VALUES/ WORK ETHICS, AND INSIGHTS GAINED/ DEVELOPED FROM THE STUDENT’S AFNR PROJECT AND START-UP
EXPERIENCES & IDENTIFICATION OF THE PECULIARITIES OF TECHNOLOGY-BASED BUSINESSES
A lot of business concepts are being refreshed in the technopreneur’s mind as she
decides on every move she make in the enterprise start-up. The moves involves monetary
values thus, it is a good training to the technopreneurs in preparation for the future
expansions of the enterprises when there are bigger cash flows to deal with. The first
hand experience also enhances the technopreneurs’ independency on decision making
and it becomes a training ground to become future manager of an owned business.
It is not the usual flow of business when one deals with a technopreneurial venture. This
is so, because of the technicalities that a technopreneur needs to learn about the product
he offers and not merely buying or selling of the product. There is also a need for good
rapport with the technology experts, making sure that there is good communication
between the parties. There should also be a continuous research and development for the
product so as to avoid being obsolete after a period of time.
With regards to the type of product being marketed, a new product does not
always mean a good profit. Without proper marketing or advertising efforts, a valuable
product will become useless. There should always be a ready market that can purchase
the goods especially in the case of ricotta, when the product is highly perishable. Another
important thing to keep in mind is the consistent quality a product should have.
69
Inconsistencies will lead to failures in marketing and further on, failure in the whole
business as well.
It is also always necessary to know who your competitors are. This thing in mind
can be an effective way to be on your foot for regular improvement in the enterprise. If
the product will just stay with what it is for a very long time, there is a possibility that the
other companies will overtake the enterprise’s efforts. In the price competitions for
example, one might reduce his costs. This is not always equal to a large profit. There are
times that the return on investment might be of big amount but if all are receivables, the
enterprise is still highly affected. An enterprise should be liquid to some extent in order to
function well.
Being a technopreneur may seem to be a great privilege as to earning profits from
other people’s innovation. However, there will be experienced difficulties as to how the
product will be introduced to the market without the technopreneur knowing about it. It is
a must for a technopreneur to master every detail about his product because this way, he
will be more confident with the use of his products and thus attracting more customers to
buy these products. Also, as a technopreneur, one must not just be happy with their
current situation because technology easily wears out, and without the desire for
improvement, the business will experience slowing down with its growth and may even
end up being obsolete.
Resourcefulness, creativity and innovativeness are really needed to be enhanced,
in technopreneurs, just like how other types of entrepreneurs need it. Resorting to
copying what others are doing may be the easiest way to do, but being innovative and
creative can further bring a technopreneur to places he may not have imagined.
70
Failing is not always a bad thing. As experienced by the technopreneur, failures
can further build up one’s confidence and improve the future response that a
technopreneur can give to a certain situation or failure. It is also an enhancement as to
how a technopreneur will avoid similar situations, doing it in a better way and also
strengthening one’s decision making skills by facing a lot of choices, learning from
other’s mistakes and really making big decisions for oneself.
Being your own boss, in an entrepreneurial environment, might not always mean
that you can decide when you will start your work, or even end it. As for the last
production run experienced by the technopreneur, entering into this business, one must
need to properly deal with everyone involved in the business. For example was the
supplier relationship that the technopreneur has with KKMI. It is not an excuse for her
that she was from Los Baños, for her supplier to reserve for her the milk needed for
ricotta production. Every technopreneur must really have the discipline in order to attain
the goals they have set for their business. Lack of discipline may lead to extra expenses,
maybe for paying tax, this may mean extra fine. To avoid such, there must not be any
self-centered mindset that works in the business. Everyone has equal rights, and without
properly abiding with the rules may really lead someone out of the game, gaining
nothing.
71
FUTURE PLANS AND GROWTH STRATEGIES FOR THE BUSINESS
The technopreneur still has a lot to learn on the technical side of the ricotta
production. The yield has always been changing and thus, adjusting to the yield will form
a standardized product that will ensure the consistent quality of the product. Good rapport
with the current and future customers is expected to enhance the market and will then let
the enterprise grow in the future.
There may be a case that the ricotta will not have consumers, thus, forward
integration can be done. This will be on learning how to cook or the other utilization of
the cheese that will create wealth. For backward integration, it may be possible to
produce other types of cheeses that are profitable and viable in the market and still make
use of the whey available from this venture.
In the case that the technopreneur is already making use of the cow’s milk in the
manufacturing of the ricotta, the whey that will be available in the process can still be
made into ricotta and thus reducing wastage of the resources in the enterprise.
72
SUMMARY, IMPLICATIONS & CONCLUSIONS
Ricotta cheese manufacturing is a new business venture taken up by the
researcher of this study. The commercialization of ricotta cheese still needs to be studied
thoroughly because of the lack of market that will sustain its current situation. Based on
the start-up of this enterprise, ricotta cheese still has to have its established market. The
venture may look good and very profitable, but lacking proper management, the
enterprise won’t be able to take advantage of the budding market for this product. Thus,
the technopreneur really needs to be very wise in the decisions to make as to how the
enterprise is going to be managed. The strategy to be applied must be market penetration,
giving lower price to the product than the ricotta cheese currently available in the market.
There may also be an immediate need to add a worker in the manufacturing process since
the production is gaining economies of scale when done by two or more persons. Seven
hours of work for one person turns out to be a 4-hour work when there is a worker added.
In the long run, this increase in the workforce may lead to increase in the profitability of
the venture. This business enterprise does not only bring wealth to a person but also
brings employment to others.
A consumer and market survey done showed that the product was more attractive
to the individual buyers since they are more flexible as to deciding on what they will be
cooking for a day, unlike the institutional buyers who already are faced with their
73
existing set of food preparations and other delicacies. It is learned however that these
institutional buyers may be tapped using intense marketing, that which will introduce
them to the ways of utilizing ricotta with which they can benefit from. Brochures and
recipes that can help them know about the product and at the same time help the
technopreneur improve with the venture given their suggestions and criticisms. The
pricing strategy to be employed will give lower price that is 80pesos per 200gram tubs of
ricotta and there will be market penetration employed by producing the ricotta cheese
made of cow’s milk and eventually bring it to the different segments of the market.
74
RECOMMENDATIONS
For the Student’s Business Plan Implementation & Start- Up
The technopreneurship Study is a very challenging type of Special Problem that
deals with technology based businesses in UPLB. For students who are inclined to taking
risks and are good in decision making and still would like to improve, this is an excellent
outlet of such skills due to the hands-on training and not only an observing type of
experience for them. This will also enhance their management skills as they will be
applying the lessons they learned from the four year stay they had in the university. Also,
they had an advantage on the other graduating students since the technopreneurship study
may be continuous process even after graduation. Unemployment will not be an issue
anymore since a student will have his own business and he still has the chance to be
innovative and further create businesses that will complement the one he started. This
study is also an avenue for the student to give gratitude to the university and help in the
improvement of the technologies especially in the marketing area where the common
weakness of a technopreneurial venture is present.
The current production processes was having no problems with its source of raw
materials, KKMI. The company has continuous supply of raw milk and can be easily
purchased providing one has his/her own gallon container for it. The technopreneur used
75
her own container which she used to transport the milk from the company to the
manufacturing area.
This venture highly requires a consistent quality as it targets the high-end market.
Thus, in order to have the product that will be highly recognizable with its high quality,
the production processes needs to be standardized along with its amount of ingredients
and time of cooking.
For Yourself & Other Technopreneurs
The experiences I learned from this experience are a really big help especially in
my management skills. There may be a possibility that this study may fail but the
learning I will gain from these experiences will further build my personality and my
attitude towards facing risk and can be my foundation in facing the real world after
graduation. It is not an easy task to work on an enterprise start-up but the knowledge
gained from these are more than enough to improve the way I will face similar challenges
in the future. This study changes my outlook in life. Going into business is not mainly
dependent on the availability of capital or the technology, but on the creativity of an
individual in creating a need, meeting those needs and earning from catering to those
needs. The lessons I learned from the other management subjects I took will not be of any
value if I will just keep them in my head. The technopreneurial study is an avenue where
I was able to release my abilities and at the same time learn from my mistakes.
The business world is not a vault of money wherein one can just enter and get
what he wanted. Instead, it is like a land ready to be cultivated, maybe at times, full of
weeds needed to be cleared in order for one to gain wealth. Industriousness and creativity
76
are some of the investments one must have in order to attain the objectives he has set for
his future.
The financial assistance from the Department and the program may not be
available in the future, thus, the student or other technopreneurs must be resourceful
enough to find their own sources may it be boot strapping, lending from the bank or
borrowing from relatives and friends. Also, one should learn to prepare his/her own
money through working on simple jobs that can help in the financial requirements of teh
start-up. The technopreneur did her own fund raising activities through tutoring a Grade 2
student and earning a considerable amount from it. The venture will not be successful
even if one has the resources needed. Perseverance and innovativeness is needed to let
the venture bloom and reach its maximum profitability.
For The AFNR Project/ DAM/ AFNR Units
Together with other students of the AFNR Training, the technopreneur of this
study is very thankful for the opportunity of being one of the recipients of the free
training and well-guided business start-up. This can be the stepping stone for the students
who will enter the business world. Having the first-hand experience of conducting a start-
up is one of the most valuable lessons one can learn in this university.
This should be continued to the next batches of Management students and if
allowable, this may be included in the curriculum as it contributes a lot to the learning
process of an Agribusiness Management student. There should also be a definite financial
assistance that the students can use given they are still lacking the capital needed in the
start-ups.
77
ABM Curriculum
The Agribusiness Management Curriculum might want to include this short-
course training in the required subjects for the students. It is a good source of compressed
yet very important management concepts being discussed in the lessons and are directly
applied to the real situations of an existing business. This will give a better understanding
of the management concepts as well as the high experiential learning as students are
being subjected to the real problems and are demanded to be independent thinkers. With
these, the graduates of Agribusiness Management can be more competitive when faced
with challenges of the real world.
For Current And Potential Stakeholders
Technologies in UPLB are ones that are very rare to find anywhere in the country.
Accordingly, a chance to focus on the commercialization of these technologies can be a
very promising venture when given with proper attention. Many promising technologies
like Biospark Trichoderma, Bio-N, VCO and other products can be invested upon and
helped in the marketing area of its enterprise. Proper allocation of resources is needed; as
well as enough investment can be utilized well if there will be enough resources for these
arising technologies. Stakeholders should learn to seek for the promising technologies
and further on improve its marketability so as to create wealth from such technologies.
78
REFERENCES
Emata, O. (2010) ADSC Processing Plant [Interview by E. Maranan] University of the Philippines Los Banos, 27, July 2010.
Garin, B. (2005) A Case Study of a Dairy Farm and Processing Company : Hacienda Macalauan Inc.. Unpublished BS Thesis, University of the Philippines Los Baños
How to Make Ricotta Cheese. http://www.wikihow.com/Make-Ricotta-Cheese. Accessed on August 23, 2010.
Lopez, M. (2005) Business Plan for the Expansion of the Philippine Carabao Center Processing Plant from 200Liters to 500Liter-Capacity in General Trias Cavite. Unpublished BS Thesis, University of the Philippines Los Baños
Nash, S. (2008) Business Analysis of the Animal and Dairy Sciences Cluster Dairy Processing Plant and Dairy Bar. Unpublished BS Thesis, University of the Philippines Los Baños
Recipes for Ricotta-- http://recipeland.com/search?q=RICOTTA. Accessed on October 3, 2010
Ricotta-Cheese Description. http://www.cheese.com/Description.asp?Name=ricotta. Accessed on September 18, 2010.
Ricotta: Creamy Homemade Ricotta. http://mamachronicles.typepad.com/in_jennies_kitchen/2009/09/creamy-homemade-ricotta.html. Accessed on September 26, 2010.
Ricotta Cheese-- http://www.cooks.com/rec/search/0,1-0,ricotta_cheese,FF.html. Accessed on October 3, 2010
79
APPENDIX
80
Appendix 1
Cost of Goods ManufacturedRicotta Cheese
Cost of Goods ManufacturedFor the month ending, July 31,2010
JULY Quantity Price (Php)Direct Materials:
Raw Milk 20L 640.00Salt 20g 10
Citric Acid 100mLobtained for free from
DTRIDirect Labor:
Labor 0 0Total 650.00
Manufacturing Overhead:
Packaging Materials 3(200g) & 11(100g) 37200g packs=5pesos; 100gram
packs=2pesos2 pesos per label 14 packs 28Transportation 4rides 60
TOTAL 125.00COGS 775.00
COST OF GOODS SOLD
July
Total Manuf. Cost 775.00
Beginning Inventory
--------
Total goods available for sale
775.00
81
Ending Inventory ---------
Cost of Goods Sold 775.00
Appendix 2
Working Capital and Fixed Assets
WORKING CAPITAL EVERY MONTH(TWICE A WEEK PRODUCTION)
Rent(Lamot 2, Calauan, Laguna)—started in July 10,2010
1800
Raw Milk(@32 per Liter; 20L per production; 2x a week)
5120
Zonrox(1Liter) 50LPG(11kg) 617Citric Acid(450mL) 200Refined Salt(500g) 25
TOTAL WORKING CAPITAL781
2FIXED ASSETS
(purchased from July 9-11, 2010)1 Stainless Casserole(35L capacity) 6291 Kalan(heavy duty) 9991 Weighing Scale 1191 LPG Tank 9331 set of Measuring Cups 37
TOTAL FIXED ASSETS271
7
82
Appendix 3
A. Consumer and Market Survey
Good morning/afternoon!
I am Pauline Carmel Joy C. Eje, a graduating B.S. Agribusiness Management student of the University of the Philippines Los Baños, Laguna. I am currently conducting “A Technopreneurship Study on Ricotta Cheese in Los Baños, Laguna”. In connection to this, I would like to ask about your personal insights and opinion about Ricotta cheese. Your answers will be kept confidential and shall be used for this research purpose only. Thank you very much for your time and God bless.
Part I.
1. Are you familiar with Ricotta Cheese?
[ ] Yes [ ] No
1.1 If yes, where did you learn about it? ________________________________1.2 If yes, how familiar are you with ricotta cheese?
[ ] heard but not yet seen[ ] had seen but not yet tasted[ ] had seen and tasted
2. What brands of ricotta cheese do you know?
[ ] DTRI’s [ ] Hacienda Macalauan’s
3. What brands have you used and/or tasted?
[ ] DTRI’s [ ] Hacienda Macalauan’s
4. Is this your first time to taste ricotta cheese?
[ ] Yes [ ] No4.1 If no, when and where have you tasted it? _______________________________
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5. What other types of cheeses have you tasted already?
[ ] cream cheese [ ] blue cheese[ ] edam cheese [ ] mozzarella[ ] parmesan [ ] others (specify): __________________
6. How often do you buy ricotta cheese?
[ ] everyday [ ] several times a week[ ] once a week [ ] several times a month[ ] once a month [ ] rarely
7. Where do you usually buy ricotta cheese?
[ ] supermarket [ ] individual[ ] grocery store [ ] others, pls. specify: _______________
8. How many grams do you buy per instance?
[ ] 50g [ ] 200g[ ] 100g [ ] others, pls. specify: _______________[ ] 150g
9. In what type of food do you use ricotta cheese as ingredient? _______________________________________________________________
10. How much ricotta cheese do you use per type of food? ______________________________
11. When was the last time you use ricotta cheese?
[ ] within the day [ ] within the week[ ] within the month [ ] others, pls. specify: ____________[ ] within the year
In the list below, check which general characteristic of ricotta cheese you consider when buying:
[ ] price [ ] availability
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[ ] packaging [ ] brand
[ ] flavour/taste [ ] nutritional value
[ ] producer/manufacturer [ ] others, pls. specify: ______________________
Price Sensitivity Analysis
Below is price scale for the Ricotta Cheese. Please answer the following questions using the scale.
Would you buy a 200g tub of ricotta cheese at P80? [ ] Yes [ ] No
Would you buy a 200g tub of ricotta cheese at P90? [ ] Yes [ ] No
Demographic Profile.
Name:
Address:
Province:
Civil Status:
Age:
Monthly Income/Allowance:Educational Attainment/ Level:
Family Size:
Position in the family:
___ head ___middle child
___ wife ___ youngest child
___ eldest child
Living with the family?
___ Yes ___ No
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Appendix 4
Ricotta Cheesecake with Fresh Berry Topping
Ricotta Cream Cannoli
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Mocha Ricotta Tiramisu
Ricotta Choc Mousse
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Cherries with Ricotta Cheese and Toasted Almonds
Lasagna
Manicotti
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Ravioli
Appendix 5
Hi!
Do you know someone who has a demand for RICOTTA cheese?
Students of culinary schools, chefs, cooks, owners of pastry shops perhaps, or even someone who loves to experiment in cooking/baking.
***Like mascarpone in northern-Italian cuisine, ricotta is a favorite component of many Italian desserts, such as cheesecakes and cannoli. There are also kinds of cookies that include ricotta as an ingredient.
In Italian households and dining establishments, ricotta is often beaten smooth and mixed with condiments, such as sugar, cinnamon, orange flower water and occasionally chocolate shavings, and served as a dessert. This basic combination (often with additions such as citrus and pistachios) also
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features prominently as the filling of the crunchy tubular shell of the Sicilian cannoli, and layered with slices of cake in Palermo's cassata.
Combined with eggs and cooked grains, then baked firm, ricotta is also a main ingredient in Naples' pastiera, one of Italy's many "Easter pies" . Regional variations may be sweet or savory.
Ricotta is also commonly used in savory dishes, including pasta, calzoni, pizza, manicotti, lasagne, and ravioli.
It also makes a suitable substitute for mayonnaise in traditional egg or tuna salad and as a sauce thickener.
Source: http://en.wikipedia.org/wiki/Ricotta#Common_culinary_uses
*** i'll be producing RICOTTA soon. just send me a message for inquiries..thanks!:)
--Carmel Eje :)
Responses:
1. Hi Carmel,
Really? Marami kami dito sa office who would like to buy ricotta cheese. Just tell me when the cheese is available.
Always,Tita Susan
2. ey carmel!
awesome to hear from you. i'm pretty sure conan will have great use for it.
thanks for heads up!
musta na? have a good one
Rom Saplaco
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Appendix 6
William Audette October 1 at 6:41am ReportWow, that is quite the list.1. What types of food do you put in ricotta cheese?A: We can put a few seasonings, (i.e. salt, pepper, olive oi, and lemon juice) in the cheese and eat it fresh like with crackers or raw vegetables. Seasoned grilled vegetables tossed lightly with similar seasonings is also good. Fresh Ricotta Cheese generally has a good flavor that is best eaten with lightly seasoned accompaniments so as to enjoy the flavor of the cheese. Homemade cheese is more flavorful than store bought by far. It is also more versatile.
Typically though we do not put food into ricotta cheese but build food around it. Typically we'll stuff large noodles such as manicotti or Cannelloni http://bit.ly/ajrSJP with this cheese for a tasty main dish. Lasagna is also a popular dish made with this simple to make cheese.
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2. May I know some recipes you have?A: There are too many to list. If you insist on one, let me know and I'll dig one up for you.
3. What brands of ricotta do you know?A: There are many store bought brands, but we make our own.Organic Valley, Sorrento, are a couple of the brands we have locally.
4. Where do you buy ricotta?(supermarket, bakeshop,etc.) or do you make your own?A: We make it fresh at home. It is simple and only takes a few minutes.
5. How much ricotta do you use per instance?A: Usually we make a pound or two at a time depending on how many guest we have over.. A pound feeds our family of four easily.
6. How often do you use ricotta?A: Maybe three times a month, and maybe more if we are in the mood for it.
William...
William Audette October 1 at 3:12pm Report
Here are some easy recipes. Note that milk in America in not sweetened with sugar when purchased from the store.
http://www.italianfoodforever.com/iff2008/index.php?option=com_content&view=article&id=679%3Aricottacheese&catid=68%3Adebsblog&Itemid=67
Making Ricotta Cheese At Home
www.italianfoodforever.com
Joomla! - the dynamic portal engine and content management system
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Appendix 7
Direct Materials, Indirect Materials and Manufacturing Overhead provided by the AFNR Project on the Initial Production
Whey-based Ricotta CheeseVolume of Production: 20 L
Direct and Indirect Materials
Price RequiredTotal Cost (Php)
Whey from Mozzarella Cheese Php0/L 20L 0Refined Salt Php10/200g 5g 0.25Packaging Plastic Tubs Php 5 / tub 1 tub 5TOTAL DIRECT AND INDIRECT MATERIALS COST 5.25
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Manufacturing Overhead
Price RequiredTotal Cost (Php)
Toll Processing Fee Php 0/ L 20L 0TOTAL MANUFACTURING OVERHEAD 0
Direct Materials, Indirect Materials and Manufacturing Overhead provided by the AFNR Project on the Initial Production
Whey-based Ricotta CheeseVolume of Production: 30 L
Direct and Indirect Materials
Price RequiredTotal Cost (Php)
Whey from White Cheese Php0/L 30L 0
Refined Salt Php10/200g 8g 0.70Packaging Plastic Tubs Php 5 / tub 2 tubs 10TOTAL DIRECT AND INDIRECT MATERIALS COST 10.70
Manufacturing Overhead
Price RequiredTotal Cost (Php)
Toll Processing Fee Php 0/ L 30L 0TOTAL MANUFACTURING OVERHEAD 0
Direct Materials, Indirect Materials and Manufacturing Overhead on the 1st and 2nd
Home-based Production Run
Cow’s Milk-based Ricotta CheeseVolume of Production: 15 L
Direct and Indirect Materials
Price RequiredTotal Cost (Php)
Raw Cow's Milk Php32 / L 15L 480Salt Php 10 / 200g 50g 2.510%Anhydrous Citric Acid Php150/kg 50 7.50
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SolutionMiscellaneous Zonrox (Hypochlorite) Php 10 / bottle 1 bottle 10
Dishwashing Liquid Php 12 / sachet 1 sachet 12TOTAL DIRECT AND INDIRECT MATERIALS COST 512
Manufacturing Overhead
Total Cost (Php)
Gas 100Fare to Junction jeepney 6Fare to Calauan
jeepney 15Fare to Lamot2 Tricycle 8Fare to Los Banos jeepney 23Fare to Women’s Dorm jeepney 8TOTAL MANUFACTURING OVERHEAD 160
Direct Materials, Indirect Materials and Manufacturing Overhead on the 3rd Home-based Production Run
Whole Cow’s Milk-based Ricotta CheeseVolume of Production: 6 L
Direct and Indirect Materials
Price RequiredTotal Cost (Php)
Whole Cow's Milk Php44 / L 6L 264Salt Php 10 / 200g 5g 0.25Apple Cider Vinegar Php75/500mL 150mL 22.50Miscellaneous Zonrox (Hypochlorite) Php 10 / bottle 1 bottle 10
Dishwashing Liquid Php 12 / sachet 1 sachet 12TOTAL DIRECT AND INDIRECT MATERIALS COST 308.75
Manufacturing Overhead
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Total Cost (Php)
Gas 100Fare to Junction jeepney 6
Fare to Calauan
jeepney 15Fare to Lamot2 Tricycle 8Fare to Los Banos jeepney 23Fare to Women’s Dorm jeepney 8TOTAL MANUFACTURING OVERHEAD 160
Direct Materials, Indirect Materials and Manufacturing Overhead on the 4th Home-based Production Run
Whole Cow’s Milk-based Ricotta CheeseVolume of Production: 5 L
Direct and Indirect Materials
Price RequiredTotal Cost (Php)
Whole Cow's Milk Php44 / L 5L 220Salt Php 10 / 200g 5g 0.25Lemon Juice Php20/piece 5pieces 100Miscellaneous Zonrox (Hypochlorite) Php 10 / bottle 1 bottle 10
Dishwashing Liquid Php 12 / sachet 1 sachet 12TOTAL DIRECT AND INDIRECT MATERIALS COST 342.25
Manufacturing Overhead
Total Cost
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(Php)Gas 100Fare to Junction jeepney 6
Fare to Calauan
jeepney 15Fare to Lamot2 Tricycle 8Fare to Los Banos jeepney 23Fare to Women’s Dorm jeepney 8TOTAL MANUFACTURING OVERHEAD 160
Direct Materials, Indirect Materials and Manufacturing Overhead on the 5th Home-based Production Run
Raw Cow’s Milk-based Ricotta CheeseVolume of Production: 10 L
Direct and Indirect Materials
Price RequiredTotal Cost (Php)
Raw Cow's Milk Php32/ L 10L 320Salt Php 10 / 200g 5g 0.25Animal Rennet Php22000/kg 1g 22Miscellaneous Zonrox (Hypochlorite) Php 10 / bottle 1 bottle 10
Dishwashing Liquid Php 12 / sachet 1 sachet 12TOTAL DIRECT AND INDIRECT MATERIALS COST 308.75
Manufacturing Overhead
Total Cost (Php)
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Gas 100Fare to Junction jeepney 6
Fare to Calauan
jeepney 15Fare to Lamot2 Tricycle 8Fare to Los Banos jeepney 23Fare to Women’s Dorm jeepney 8TOTAL MANUFACTURING OVERHEAD 160
Appendix 8
RICOTTA CHEESE RECIPES
Breakfast Blueberry Ricotta Pancakes
Ingredients
6 tablespoons flour, all-purpose1/2
cup pastry flour, whole wheat
1 teaspoon baking powder1/4
teaspoon baking soda
1/2
teaspoon nutmeg ground
1 teaspoon sugar or honey3/4
cup ricotta cheese low-fat
2 large eggs or you can 1 large egg and 1 large egg white1/2
cup buttermilk, low-fat or non-fat
1 tablespoon lemon juice
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1 teaspoon lemon zest freshly grated2 teaspoons olive oil divided, or canola oil3/4
cup blueberries fresh or frozen, not thawed
Directions
Sift all-purpose flour, wheat flour, sugar, baking powder, baking soda and nutmeg in a small bowl.
Mix well ricotta, egg, buttermilk, lemon juice and zest in a large bowl until smooth. Stir the dry ingredients into the wet ingredients until just combined.
Brush a large nonstick skillet with 1/2 teaspoon oil or coated with cooking spray and place over medium heat until hot.
Cook 2 pancakes at one time, using a generous 1/4 cup of batter for each pancake, pour the batter for 2 pancakes into the pan, sprinkle blueberries on each pancake and cook until the edges are dry and bubbles begin to form, about 2 minutes.
Flip the pancakes and cook until golden brown, about 2 minutes more. Repeat with the remaining oil, batter and berries, adjusting the heat as necessary to prevent burning.
Serve these light pancakes with Chunky Blueberry Sauce, maple syrup or honey.
Sprinkling the berries on top of the cooking pancakes ensures even distribution.
Keep finished pancakes warm in a 200°F oven, if desired, while cooking the rest.
Baked Tomato and Cheese Shells
Ingredients
400grams pasta shells, jumbo500grams ricotta cheese about 2 1/2 cups, prefer low-fat
1/2 cupparmesan, parmigiano-reggiano cheese, grated
1 cup mozzarella cheese shredded, prefer low-fat1 large egg800grams tomatoes, canned 2 cans, chopped 250grams cherry tomatoes halved3 cloves garlic chopped and sliced
1/2 cup stockvegetable, or you can use chicken stock
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1 x salt and black pepper to taste
Directions
Preheat oven to 400F.
Cook the pasta in a large saucepan of salted boiling water for 8 minutes.
Drain and rinse under cold running water. Set aside.
Mix well the ricotta, parmesan, mozzarella and egg in a medium ball. Set aside.
Stir in the canned tomatoes, cherry tomato, garlic and vegetable stock, salt and pepper to taste in a large baking dish, and combine well.
Spoon the cheese mixture into the pasta shells and set on top of the tomato sauce in the baking dish.
Bake for 25-30 minutes or until the cheese is golden, and shell starts brown. Or you can use broiler at the last 2 or 3 minutes.
Cool 2 or 3 minutes, then serve warm.
Mana's Spinach Ricotta Roll
Ingredients
12 ounces spinach cooked2 cups ricotta cheese1 tablespoon parsley leaves chopped3 each egg whites1 cup flour, all-purpose1 1/3
cups water
1/2 cup parmesan, parmigiano-reggiano cheese, grated finely grated2 cups marinara sauce1 x olive oil
Directions
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Preheat oven to 325 degrees F.
Cook or thaw spinach and squeeze dry.
Season with a little salt and pepper; set aside.
Mix ricotta cheese with grated Parmesan cheese and chopped parsley; set aside.
Mix together egg whites, flour and water, then beat with a wire whisk to get rid of lumps.
Lightly coat a crepe pan with olive oil and heat to medium.
Ladle 2 1/2 T crepe batter into heated pan. The crepe batter should lightly cover the bottom of the pan in a thin layer.
Tilt pan to cover evenly.
When edges of crepe turn lacy and brown and crepe is cooked through,remove crepe and stack on a plate.
Continue until all the batter is used.
When the crepes are cooked, assemble the rolls: spoon 2 rounded T of ricotta cheese mixture and 1 T spinach mixture on each crepe.
Fold or roll each crepe to seal in mixture.
Place rolled crepes in a greased rectangular casserole dish.
When the pan is full, spoon marinara sauce over crepes.
Bake at 325 degrees F. for 15 to 20 minutes.
Serve with grated Parmesan cheese.
If you don't have a crepe pan, you can use a small (6-inch) non-stick frying pan. You can make your own marinara sauce, or use a prepared marinara or spaghetti sauce.
Feel free to sprinkle some extra cheese on top before baking.
RICOTTA CHEESE PIE
Ingredients
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1 lb. ricotta cheese, room temperature2 pkg. (8 oz.) cream cheese1 1/2 c. sugar4 eggs1/2 tsp. lemon juice1/2 tsp. vanilla3 tbsp. cornstarch3 tbsp. flour1/4 c. melted butter1 pt. sour cream
Directions
Blend ricotta cheese and cream cheese well. Blend in sugar. Beat in eggs, one at a time. Add vanilla, lemon juice, cornstarch, flour and butter. Fold in sour cream and blend well.
Pour into 10 inch buttered springform pan. Place in cold oven and turn heat to 325 degrees. Bake 1 hour. Do not open oven door; turn off oven and leave until cool at least 2 more hours.
RICOTTA CHEESE CAKE
Ingredients1/4 c. sugar1/4 c. melted butter1 c. graham cracker or vanilla wafer crumbs
Add sugar and crumbs to melted butter and press into bottom and sides of a 9 inch buttered springform pan. Bake for 7 minutes at 350 degrees.
FILLING:1 lb. ricotta cheese1 c. sour cream3 eggs3/4 c. sugar1 tsp. vanilla
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1/4 tsp. cream of tartar1 lemon, grated rind
Directions
Cream ricotta with sour cream until smooth. Add 3 egg yolks, sugar, vanilla and grated rind of lemon. Beat for 30 seconds to 1 minute. Beat egg whites with cream of tartar, until soft peaks form. Fold egg whites into cheese mixture (DO NOT BEAT) and pour into cooled crust.
Put baking dish filled with boiling water on bottom shelf of oven. Bake 1 hour at 300 degrees. Turn off heat and leave in oven 30 minutes. Open oven door and let it cool in oven. When cool, remove sides of pan and refrigerate at least 3 hours before serving.
Source:
Ricotta Cheese-- http://www.cooks.com/rec/search/0,1-0,ricotta_cheese,FF.html Recipes for Ricotta-- http://recipeland.com/search?q=RICOTTA
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