Mirandilla, Eloisa Grace A. CRSC 2 U-6L

2013-98371 Exercise 9 Farm Entrepreneurship

Crop: Cacao

In planting cacao, grafted seedlings were used in a 4 m x 4 m square system. The land preparation involved clearing the land and applying basal fertilizer. Weeding and application of pesticide were also done. The total land preparation lasted for a week including the planting of the grafted cacao seedlings.

The maintenance of the cacao plantation involves: fertilizer application quarterly, insecticide and pesticide application biannually, and weeding every week. The crops were projected to be harvested twice a year after two years from planting.

BREAKDOWN OF COSTS

Year 1

Land Preparation (1 week)

625 seedlings of cacao (P40) = P 25,0005 laborers (MANDAY= 250 php) =P 1250Complete fertilizer= P 1250Mowing= P 2550.20Diesel= P 31.10Sevin= P 550Round up= P 1850Total Cost: P 32, 481.30

Remaining 51 weeks:

Fertilizer application (quarterly): P 1250 x 3 = P 3750Insecticide application (biannually): P 550Herbicide application (biannually): P 1850Labor (weekly; 5 laborers): P 250 x 51 x 5 = P 63, 750Total Cost: P 69, 900

Total Cost: P 32, 481.30 + P 69, 900 = P 102, 381.30

Year 2-5 (Maintenance of Plantation)

Fertilizer application (quarterly): P 1250 x 4 x 4 yrs= P 20, 000Insecticide application (biannually): P 550 x 2 x 4 yrs= P 4,400

Herbicide application (biannually): P 1850 x 2 x 4 yrs= P 14, 800Labor (weekly; 5 laborers): P 250 x 208 wks x 5 laborers= P 260, 000TOTAL COST (Year 2-5): P 299, 200

Breakdown of Cost per Year:Fertilizer application (quarterly): P 5000Insecticide application (biannually): P 1100Herbicide application (biannually): P 3700Labor cost (weekly; 5 laborers): P 65,000Total Cost per Year: P 74, 800

Average yield of cacao per hectare: 500kgMarket price of cacao: P 125/kg*harvested twice a year: Projected yearly income: (500kg x 2) x P125/kg = P 125,000

If maintenance of plantation costs P 74, 800 per year then the expected profit would be:P 74, 800 – P 125, 000= P 50,200

BREAK-EVEN YIELD (kg) = Total cost / Unit priceP 25, 000 / P 125/kg

BEY= 200 kg

COST TO PRODUCE A KILOGRAM (PhP)= Total cost/ha / Yield/ha1. Low yield: 380 kg

P 25,000 / 380 kg= P 65.792. Average yield: 500 kg

P 25, 000 / 500 kg= P 503. High yield: 700 kg

P 25, 000 / 700 kg= P 35.71

RETURN ON INVESTMENT (ROI) = Total Income or Gross Return / Total costs

Low Yield: 380 kg x P 125 = P 47, 500ROI= P 47,500 / P 25, 000= 1.9

Average Yield: 500 kg x P 125= P 62, 500ROI= P 62, 500 / P 25, 000= 2.5

High Yield: 700 kg x P 125= P 87, 500ROI= P 87, 500 / P 25, 000 = 3.5