Kabuhayan Services Group (KSG) Integrated Agribusiness Development Organic Farm

7/28/2019 Kabuhayan Services Group (KSG) Integrated Agribusiness Development Organic Farm

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DOLE Registration Certificate No. IL-RW-13-06-25-64

PROJECT: BANANA UNDER-COCONUT-TREES PROJECT

(CARDAVA/LAKATAN LIVELIHOOD-

DEMONSTRATION AND NURSERY)

LOCATION: Zone 4, Brgy. Kabacsanan, Iligan City

PROJECT COST: P958,084.60

SCENARIO:

Vision: Food Security, Health and Financial Freedom

Mission: Uplift Socio-Economic Life Through Organic Farming

Objectives:

1) To improve farming system.

2) To maximize utilization of land resources.

3) To assist farmers in putting agriculture into business.

4) To adapt organic intensive farming, providing healthful

products.

5) To align with government programs in its drive for food se-

curity.

6) To provide livelihood projects to the less fortunate.

7) To demonstrate a complete organic crop-livestock cycle in

the art of farming.

Kabuhayan Services Group (KSG) is a non-government organization

(NGO) duly registered with the Department of Labor and Employment

(DOLE), with its office address at Doña Juana Road, Purok 14, Brgy.

Palao, Iligan City, Philippines.



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Presently, it has a 7-hectare Integrated Agribusiness Development Organ-

ic Farm located at Zone 4, Brgy. Kabacsanan, Iligan City. Of the seven-

hectare area, 5 hectares are slightly rolling and 2 hectares hilly. At the

foot of the hilly portion is a spring where residents rely for drinking water.

KSG has already planted 4,500 Lakatan variety bananas and have rehabil-itated 3,000 old Cardava bananas, all under old fruit bearing coconut

trees.

3-months old Lakatan

6-months old Cardava bananas(with office staff Ms Charity Redoble)



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Ridges and areas along canals are planted with forage grasses.

Kabuhayan Services Group (KSG) is in a hurry to help farmers improve

their dwindling economic conditions by introducing and implementing ba-

nana production (cardava & lakatan) under coconut trees using our sys-

tem now at work.

At the same time, KSG has, in the same farm, eight (8) female native

goats and one (1) Saanin (8-months old) buck to be used for breeding.

The idea is to upgrade native goats to milking goats. Milk will be pro-

cessed or pasteurized for human consumption and the excess shall be

used as raw material for beauty soap.

8-months old Saanin buck



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(Dormitory-type goat house)

Goat dung will be used as organic fertilizer to KSG’s bananas, fruit trees

and cash crops, like squash, chili, tomatoes, eggplants and other vegeta-

bles grown when areas still allow its production. Native chicken (Basilan

strain) are also grown thru range farming.

Excess water/sippage are utilized for sex-reverse tilapia production

(please see attached photo below).



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This banana project under-coconut-trees is divided into three (3) sections,

to dramatize or demonstrate profitability, with the assumption that coco-

nut farmers are willing to do extra work to increase income of the family

and to elevate their standard of living in the community.

1. FIRST SECTION

Deals with fifty (50) households staying/working in coconut areas.

Their concern is to dig ten (10) holes around their respective resi-

dences using the technology now being introduced by the

Kabuhayan Services Group (KSG) at their Agribusiness Development

Organic Farm.

The system in planting cardava variety bananas is very simple. It

only requires industry among farmers in the area.

2. SECOND SECTION

The second section is LAKATAN variety of banana, which is very de-

pendent on the supply of water.

The only incentive that encourages everyone to plant such variety is

the PRICE, which is more than double the price of CARDAVA.

In spite of its being sensitive to drought, KSG will demonstrate to

the areas with water supply that LAKATAN will give more income to

the coconut farmers.

There are plenty of areas in barangay Kabacsanan that are en-

dowed with springs, but farmers just neglect its importance to the

production of LAKATAN.

Perhaps they do not know how to harness said resource to benefit

the farmers.

Once established, KSG will surely encourage them (coco-farmers

having water supply) in as much as technology is available for them.

THIRD SECTION

The third section is necessary. This is very important in encourag-

ing farmers to plant CASH CROPS during the first year of operation

to be able to reduce the negative income performance for Year-1.

Things are made easy, for seedlings are readily available for them to

use as cash crops in Year-1.

KSG provides this opportunity to make things easier for them.



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Some said, “why not give them seeds and let them grow by them-

selves.”

Experiences from the Department of Agriculture distributing seeds

did not give good results.

KSG assures them; follow through, and helps them market excess

crops from household use.

This is possible because KSG programs production of seedlings in

order not to overload market with a particular product.

THE PROCEDURE:

(Banana under Coconut Trees nearest to their respective residence)

1) Dig holes measuring one (1) meter by one (1) meter and half-

meter deep.

2) Distance from hole to hole edge is three (3) meters (please see

attached photo).

3) Two (2) gallons of manure placed in the hole and covered half

with top soil.

4) Plant one (1) banana shoot in every corner or four (4) shoots in ahole.



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5) Spray with Soil Conditioner before or after planting (the product

is available at KSG), to neutralize soil acidity and to condition the

soil.

6) Spray with another Organic Fertilizer (available at KSG) every

month for 3 months and every 3 months thereafter until Flag

Leaf appears.

7) Care and maintenance include de-leafing and cutting grassesaround each hole.

8) Wait for harvest time.

Shoots are controlled in such a way that harvesting is done every

three (3) months only or four (4) times a year. In this manner, size and

quality of bananas are maintained. Every household is given support for

twenty (20) holes and all activities, from the start up to marketing, shall

be under the supervision of KSG. (Please see COST-BENEFIT ANALY-

SIS hereto attached)

COST-BENEFIT ANALYSISOF 10 HOLES PER HOUSEHOLD

(Banana CARDAVA Variety)

EXPENSE

Year-1

BENEFIT

Year-1

holing (10 holes x P40) 400.00banana shoots (P10 x 40 shoots) 400.00

planting & fertilizer first application 200.00

spraying 300.00

maintenance 900.00

soil conditioner 500.00

liquid organic fertilizer 1,500.00

dung 90.00

administrative cost 434.00



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TOTAL COST 4,724.00

NET BENEFIT – YEAR 1 (4,724.00)

Year-2 Year-2

1st harvest (fertilizer & harvesting) 600.00

1st harvest (20 kgs x 40 bunch-

es x P7.00 = P5,600.00)5,600.00

2n

harvest (fertilizer & harvesting) 600.00 2n

harvest 5,600.00

3r

harvest (fertilizer & harvesting) 600.00 3r

harvest 5,600.00

4t harvest (fertilizer & harvesting) 600.00 4

t harvest 5,600.00

Maintenance 900.00TOTAL COST 3,300.00 TOTAL BENEFIT 22,400.00

Less: 4,724.00 + 3,300.00 8,024.00

ACCUMULATED NET BENEFIT – [YEAR 1 & 2] 14,376.00

Year-3 Year-3

fertilizer & harvesting 2,400.00 1st harvest 5,600.00

maintenance 900.00 2n

harvest 5,600.00

TOTAL COST 3,300.00 3r

harvest 5,600.00

4t harvest 5,600.00

TOTAL BENEFIT 22,400.00

LESS: 3,300.00NET BENEFIT – YEAR 3 19,100.00

From year 4 onwards, the annual net benefit (per household) would be 19,100.00

Annual benefits for 50 households

19,100.00 X 50955,000.00

NOTE:

a) Excluding sale of extra shoots by householdb) Weight per bunch

– 20 kilograms

c) Farm gate price – P7.00/kilogram of green banana fruitsd) Budget support – for a period of one (1) year only

COST-BENEFIT ANALYSIS

OF 10 HOLES Banana LAKATAN Variety

EXPENSE

Year-1

BENEFIT

Year-1

holing (10 holes x 40 per hole) 400.00

banana shoots (40 at P10 each) 400.00planting & fertilizer first application(P20.00 x 10 = 200.00)

200.00

spraying 300.00

maintenance 900.00

soil conditioner 500.00

liquid organic fertilizer 1,500.00

dung 90.00

administrative cost 434.00TOTAL COST 4,724.00

NET BENEFIT – YEAR 1 (4,724.00)

Year-2 Year-2

1st harvest (fertilizer & harvesting) 600.00

1st harvest (20 kgs x 40 bunch-es x P16.00 = P12,800.00)

12,800.00

2n

harvest (fertilizer & harvesting) 600.00 2n

harvest 12,800.00

3r

harvest (fertilizer & harvesting) 600.00 3r

harvest 12,800.00

4t harvest (fertilizer & harvesting) 600.00 4

t harvest 12,800.00

Maintenance 900.00TOTAL COST 3,300.00 TOTAL BENEFIT 51,200.00

Less: 4,724.00 + 3,300.00 8,024.00

NET BENEFIT – YEAR 2 (51,200-8,024) 43,176.00



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ACCUMULATED BENEFIT – YEAR 1 & 2 43,176.00

Year-3 Year-3

fertilizer & harvesting 2,400.00 1st harvest 12,800.00

maintenance 900.00 2n

harvest 12,800.00

TOTAL COST 3,300.00 3r

harvest 12,800.00

4t harvest 12,800.00

TOTAL BENEFIT 51,200.00

NET BENEFIT – YEAR 3(51,200-3,300) 47,900.00

From year 4 onwards, the annual net benefit (per household) would be 47,900.00

Annual benefits for 50 households

P47,900.00 X 502,395,000.00

NOTE:a) Excluding FREE DISTRIBUTION of extra shoots [estimated at 6,000 shoots per annum]

b) Weight per bunch –

20 kilogramsc) Farm gate price – P16.00/kilogram of green banana fruitsd) Budget support – for a period of one (1) year only

The logistic support per household is only P4,724.00. With the tar-

geted fifty (50) households, P236,200.00 is needed for cardava liveli-

hood.

For the Lakatan banana livelihood, P236,200.00 is likewise allocat-ed for KSG to demonstrate a small area taken from the seven-hectare ag-

ribusiness development organic farm, to show to the 50 households that

Lakatan can be grown successfully when water is readily available. The

KSG Integrated Agribusiness Development Organic Farm is very lucky to

have a spring at the foot of the hilly portion of the area. Spring water is

impounded first and stocked with sex reverse tilapia before it is being

used to water the Lakatan bananas. The cost-benefit analysis as shownwill give a good idea in the difference of income.

Lakatan variety has shown a tremendous difference in income in the

amount of P1,440,000.00 (P2,395,000.00–955,000.00) for the 500 holes

planted: again water is the determining factor.

Barangay Kabacsanan has plenty of springs surrounding the area,

but farmers do not see the importance of such water resource in the pro-duction of Lakatan banana which will give farmers a very high income.

It can be noted that a household will have a negative benefit at

year-1. However said household can have an income should he plant cash



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crops during the year-1. Here, benefits vary from one household to an-

other.

To accommodate industrious households who are willing to utilize

areas where bananas are planted in day-1 to day-365, a nursery in the vi-

cinity of KSG demonstration farm is deemed necessary to produce theneeded seedlings for the household cash crops, especially during year-1.

In this manner, deficit may be reduced and daily needs for the kitchen, at

least, can be attended to. One Hundred Twenty Eight Thousand Two

Hundred Eighty (P128,280.00) pesos would be enough to start a present-

able nursery house and seeds to grow for distribution to participating

households.

(Please see attached nursery plan, and bill of materials, tools and

equipments).



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NURSERY SKETCH PLAN



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BILL OF MATERIALS

UNIT PRICENO. OFITEMS

COST

NURSERY PROJECT12 Bags cement 220.00/bag 12 2,640.00

3 cubic meter sand (delivered atKabacsanan) 1,500.00/cum 3 4,000.00

2 kgs tie-wire 65.00/kgs 2 kgs 130.00cement hollow blocks (delivered toKabacsanan

12.00 each 1,000 12,000.00

coco-lumber 15.00/bftPost 4x4x8 = 10.66 x 8 =85.33 bdft x P15.00 =

8 1,280.00

Truss 2x4x8 = 64/12 = 5.33bdft x 8 x P15.00

8 640.00

Purlains 2x3x8 =48/12 =4

x12 =48 x P15 =

12 720.00

Beam 2x4x10 = 80/12 =6.66x4 = 26.64xP15 =400.00

4 400.00

Beam 2x4x12 =96/12 =8x4=32xP15 =P480.00

4 480.00

Boxes 2x2x12 = 48/12 =4x16 =64xP15 = P960.00

16 960.00

umbrella nails P80/kgs 2 kgs 160.00G.I. plain sheets #28 P260/pc 2 pcs 520.00G.I. sheet #24 255/pc 14 pcs 3,570.00nails #4 44/kgs 10 kgs 440.00nails #3 45/kgs 10 kgs 450.00nails #2 48/kgs 10 kgs 480.00steel bars #9 75/pcs 22 pcs 1,650.00hinges (2x4) 80/pcs 4 pcs 320.00ready-made door (70x210) 3,500/pcs 2 pcs 7,000.00door knob 450/pcs `2 pcs 900.00knapsack 3,500/pc 1 pc 3,500.00weighing scale (10kgs) 1,200/pc 1 pc 1,200.00trowel (bunglai) 75/pc 5 pcs 375.00small pail 30/pc 2 pcs 60.00shovel 350/pc 2 pcs 700.00bolo w/ scabbard 300/pc 2 pcs 600.00spading fork 350/pc 2 pcs 700.00pruning shears 480/pc 2 pcs 960.00rake 180/pc 1 pc 180.00sprinkler (1 gal. cap.) 30/pc 2 pcs 60.00sprinkler (2 gal. cap.) 50/pc 2 pcs 100.00plastic drum (200-lit. cap) 2,000/pc 2 pcs 4,000.00PVC pipe blue (1/2”) 55/pc 10 pcs 550.00PVC coupling (1/2”) 5/pc 10 pcs 50.00gate valve 155/pc 1 pc 155.00faucet 120/pc 1 pc 120.00½” heavy-duty hose w/ biv (25meters long)

850/set 2 sets 1,700.00

polyethylene black bag (4”x6”) 185/ream 50 reams 9,250.00polyethylene black bag (5”x8”) 300/ream 25 reams 5,500.00polyethylene black bag (6”x8”) 550/ream 15 reams 8,250.00polyethylene black bag (8”x12”) 1,050/ream 10 reams 10,100.00polyethylene black bag (10”x12”) 1,280/ream 5 reams 6,400.00organic liquid fertilizer 1,200/liter 20 liters 24,000.00



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organic liquid soil conditioner 1,200/liter 20 liters 24,000.00double net fishnet 5,800/roll 1 roll 5,800.00

COST FOR NURSERY SECTION 128,280.00

COST for CARDAVA SECTION@ 4,724/household x 50 house-holds

236,200.00

COST for LAKATAN SECTION 236,200.00

SUB-TOTAL COST 600,680.00

Labor @ 35% of SUB-TOTAL cost(600,680.00 x .35) = P210,238.00

210,238.00

Admin cost @ 10% of SUB-TOTALcost (600,680.00x10% =P60,068.00

60,068.00

870,986.00

870,986.00Contingency (870,986.00 X 10%) 87,098.60

TOTAL PROJECT COST 958,084.60

In year-2, the gross benefit of Cardava is P22,400.00, less deficit of year-

1 and expenses of year-2, said household will have a net benefit of

P14,376.00, an added income to the usual undertaking.

Year-3 onwards will have a net benefit of P19,100.00, not including

the sale of shoots removed due to quality control (household’s own discre-tion whether to sell or to be given for free to their relatives and friends).

In like manner, in Year-2, the gross benefit of Lakatan is P51,200.00.

Less deficit of Year-1 and expenses of Year-2, the net benefit is

P43,176.00. In Year-3, the total benefit is P47,900.00, less expenses,

giving a total annual benefit of P2,395,000.00.

The grand total annual benefit from Cardava, Lakatan, and Nursery

project is P3,050,000.00.

The Kabuhayan Services Group (KSG) assures every household par-

ticipating in the banana-under-coconut-tree project with respect to the

marketing of their produce.

As we increase in production, processing of bananas will come in

and perhaps an international market can be arranged.

The proponent is of the belief that farmers will surely improve their

economic life at only ten (10) holes near their respective residences. How

much more if they double the number, at their own expense, not to men-

tion those farmers who are endowed with water resource in their respec-



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tive areas where Lakatan can be grown profusely. The possibility is not

remote, for profit is the best motivation.

PROJECT COST: P958,084.60

COST FOR NURSERY SECTION 128,280.00

COST for CARDAVA SECTION@ 4,724/household x 50 households

236,200.00

COST for LAKATAN SECTION 236,200.00

SUB-TOTAL COST 600,680.00

LABOR @ 35% of SUB-TOTAL cost (600,680.00 x .35) =P210,238.00

210,238.00

ADMINISTRATIVE COST @ 10% of SUB-TOTAL cost

(600,680.00x10% = P60,068.0060,068.00

870,986.00

CONTINGENCY (870,986.00 X 10%) 87,098.60

TOTAL PROJECT COST 958,084.60

We pray that this project proposal merits your utmost consideration and

support. Most respectfully, we remain

Very truly yours,

CRISPINIANO T. RUEGAPresident

Mobile No.: 0926-902-4952Landline No.: (063) 221-4369

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Kabuhayan Services Group (KSG) Integrated Agribusiness Development Organic Farm

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