Seaweeds Farming

Seaweeds Farming at Layag-layag - An Investor's/Sponsor's Guide

On the proposed Two (2) Year Build-Operate-Transfer (BOT) Scheme
Scheme Description: The Investor/Sponsor will agree to build a complete seaweeds farm facilities which costs are recoverable by depreciation for two years and the same farm facilities are transferred (ownership) to the recipient farmer on an agreed ROI payment scheme.

Fixed Investments:

1. Mini Drying Platform (18ft.X 18ft.), Working Shade (12ft.X 12ft.) and Storage (8X8ft.)


Materials: QTY Unit U/Cost Total

Hard Bamboo Poles 16 pcs 150.00 2,400.00
Round timber posts 8 pcs 150.00 1,200.00
Full Length Bamboo 24 pcs 135.00 3,240.00
12ft.Quarter bamboo slits 400 pcs 7.00 2,800.00
2 x 4 x 12 Coco Lumber 3 Pcs 128.00 384.00
2 x 4 x 8 Coco Lumber 9 Pcs 85.00 765.00
2 x 3 x 12 Coco lumber 9 pcs 96.00 864.00
2 x 2 x 12 Coco lumber 13 Pcs 64.00 832.00
2 x 3 x 8 Coco lumber 18 Pcs 64.00 960.00
2 x 2 x 8 Coco Lumber 28 Pcs 43.00 1,204.00
2 x 2 x 14 Coco Lumber 8 Pcs 75.00 600.00
2 x 2 x 10 Coco Lumber 6 Pcs 54.00 324.00
25’s Nipa 6 Bundles 110.00 660.00
Softie Plastic Twine 1 Roll 110.00 110.00
4 x 8 Sawali 4 Sheet 110.00 440.00
Test 300lbs Monofilament Nylon 3 Rolls 300.00 900.00
Test 120lbs Monofilament Nylon 3 Rolls 110.00 330.00
8 ft. Plain G.I Sheets (half) 4 Sheet 160.00 640.00
Assorted CWN 10 Kg 55.00 550.00
Assorted Wood Sticks 250.00
Carpenter labor 15 Man days 300.00 4,500.00
TOTAL 24,145.00



2. 1 Module Bamboo Planting Frame (Alol)and its accompanying 150 single lines.

Materials QTY UNIT U/PRICE TOTAL
#22 (11mm) Polyrope 1 Roll 1,850.00 1,850.00
4 Feet 25 mm Corrogated Bar 10 Pcs 380.00 3,800.00
Plastic Binder 5 Roll 120.00 6,00.00
#8 (4mm) Polyrope 12 Roll 260.00 3,120.00
Softie Plastic Twine 12 Roll 110.00 1,320.00
Test 120 lbs Monofilament Nylon 3 Roll 110.00 330.00
Assorted PET bottles 450 Pcs .65 292.50
Large Special Bamboo (20-25 ft) 7 Pcs 200.00 1,400.00
Total Materials 12,712.50
LABOR:
Frame Materials Preparation 7 Man days 200.00 1,400.00
Brand New Single line Preparation 150 Lines 10.00 1,500.00
Frames/Posts Installation 10 Posts 100.00 1,000.00
Labor Total 3,900.00
FRAMES AND LINES TOTAL 16,612.5


3. Paddled Banca

Paddle Banca Average Cost 7,500.00

TOTAL FIXED INVESTMENT 48,257.50


Monthly Amortization @ 24 months (48,257.50/24) Php2,010.73


Operation cost (Per cropping in 45 days old crop direct harvest method)

Description Qty Unit U/Cost Total
Seedlings (150 lines x 7 kg) 1,050 Kg 4.50 4,725.00
Labor:
Tying & Planting 150 Lines 16.00 2,400.00
Harvesting 150 Lines 15.00 2,250.00
Untying/Removal/Line Cleaning/Drying 150 Lines 8.00 1,200.00
Total 10,575.00

Selling Expenses
Sacking (Est. Harvest 8 Sacks) 8 Sacks 25.00 200.00
Delivery 8 Sacks 25.00 200.00
Total 400.00
Add: Recovery/Depreciation per Cropping 2 months 2,010.73 4,021.46
Total Operation Cost per cropping 14,996.46

TOTAL INITIAL INVESTMENT: (48,257.50 + 10,575.00 + 400.00) = 59,232.50





PROJECTED REVENUE per Cropping:


Description QTY Unit Unit Price Total
Est. Dried Harvest (150 lines x 8kg/line) 1,200.00 kg 40.00 48,000.00

Less: Total Cropping Cost (14,996.46)
Gross Margin Before Caretaker /Farmer Share 33,003.54
Caretaker/Farmer Share (25%) (8,250.89)
Net Margin After Caretaker/Farmer Share 24,752.66




ANNUAL REVENUE & COST PROJECTION (Projected Income Statement)

Sales (48,000.00 X 6) 288,000.00
Less: Cost of Sales
Seedlings (4,725.00 X 6) 28,350.00
Planting Labor (2,400.00 x 6) 14,400.00 (42,750.00)

Gross Margin 245,250.00

Less: Depreciation and Expenses
Depreciation (2,010.73 X 12) 24,125.16
Harvesting Labor (2,250.00 X 6) 13,500.00
Drying & Selling/Delivery Expenses (1,600.00 X 6) 9,600.00 (47,225.16)
NET MARGIN Before Caretaker/Farmer Share 198,025.00
Caretaker/Farmer Share (25%) (49,506.20)
Net Income 148,518.63



Suggested Financial and Operations Flow-chart:


Step1. Investor/Sponsor Submits letter of Intent to Coordinator(s) with scheme revision clause if there is any.

Step2. Coordinator Informs Patriarchal Small Groups and asks for recommendations and endorsement for recipient farmer/operator.

Step3. Coordinator prepares contracts while recipient farmer/operator prepares budget and fund request.

Step4. Coordinator secures signature(s) and submits contracts and budget and fund requests to investor(s).

Step5. Investor deposits amount equivalent to the needed funds based on the program of work to the Patriarchal Small Group’s bank account.

Step6. Small Group Central Officer/committee procures needed materials and endorses the same to farmer/operator with notice to proceed.

Step7. Farmer/Operator submits accomplishment reports to Small Group Central committee and Coordinator Submits updates to investor(s).

Step8. Investor releases final budget.

Step9. Farmer/Operator through the Small Group Central committee and coordinator submits final accomplishment reports and updates.

Step10. Investor inspects crops every 10 days from final planting or Coordinator submits pictorial updates via social media if investor is away.

Step11. Farmer/Operator proposes harvest on the 45th day from first planting.

Step12. Farmer/Operator delivers dried seaweeds to designated/accredited buying station.

Step13. Buying station deposits payment/issue check payment with accompanying payment advice to small group bank account.

Step14. Farmer /Operator through the Small Group Central Committee Deposits all proceeds net of Farmer/Operator share to investor(s)’ provided bank account.

Step15. Coordinator submits financial and operations reports to investor/sponsor.

The goes on with the succeeding planting/cropping cycle starting step 5.