Kapet Buhay Coffee Agribusiness Program 2012

8/2/2019 Kapet Buhay Coffee Agribusiness Program 2012

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KAPET BUHAY Multi-Partite Community Based Coffee Agribusiness

Production & Consumption Program for Philippine Coffee

Submitted by : Bote Central, Inc. ( SEC registered Philippine private corporation)

This is a Multi-Partite synergetic program initiated by Bote Central with Dept. of Agricultures Hon.

Secretary Alcalas Program to Develop Coffee Roasting Centers throughout the county & DSWDs

Hon. Secretary Dinky Solimans Pantawid Pangkabuhayan Program for the poorest of the poor - a

nationwide project of DSWD to alleviate the poor by developing nano coffee entrepreneurs in the

urban & rural poor .

A production & consumption program of Philippine coffee , anchored on sustainable development

entrepreneurship for the marginalized poor - wherein farmers shall be transformed , educated,

trained, mentored and coached to become farmer entrepreneurs , going into the agribusiness of

coffee serving their own produced coffee to the local communities .

On the other hand, the SEA-K beneficiaries of DSWD shall be directly linked to the farmer

agribusiness clusters for market linkage , wherein the SEA-K beneficiaries, with DSWD soft loan

packages , shall also be taught, trained, mentored and transformed into nano coffee retailers to at

least augment family income .

Project Objectives :

Increase income opportunity of small coffee growers by adding value to raw green coffee

beans through the process of roasting ; and to the urban poor, by providing capital and skills

to transform them into nano-coffee entrepreneurs

Provide opportunity for coffee farmer clusters to retail roasted coffee in the community level

which will encourage them to drink their own locally produced coffee

Empower womens groups to administer & operate the community based coffee agribusiness

while teaching proper values to the next generation

For the farmers children to happily and proudly accept the legacy of being a farmer

Establish Coffee Seed Bank for the roasting facilities

To convert Filipinos , both in urban and rural countryside areas to drink & support locally

produced / processed Filipino brewed coffee

To be totally independent of world market prices for coffee

Produce the best coffee in the world

Multi-Partite Public / Private Partnerships :

Dept. of Agriculture , HVCDP RFUs - initiated the CRBUs

Dept. of Social Welfare & Development - SEA-K livelihood program

Department of Agrarian Reform BARBD village enterprise development

Philippine Business for Social Progress PBSP - collaborator


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Philippine Social Enterprise Network PHILSEN - training & skills development program

manager

Accenture - Skills to Succeed 2015 Program

Globe Telecoms - internet connections for CRBUs

Department of Science & Technology DOST production line support

Local Government Units - alternative funder for equipments Philippine Coffee Alliance - program incubator & marketing support

Actual Development Impacts : (sourced from Mt. Matutum, General Santos over a three(3) year period)*

The civet coffee/roasting machine have motivated the planting of more coffee trees , thereby

enhancing the forest from 79 hectares to 400 hectares planted with coffee trees, over a period

of three years

Expanded wildlife habitat & improved quality of watershed in general

Assured long term flow of quality water from the watersheds into the growing urban centers

Provided locally produced , low priced but higher quality of coffee products for all market

segments

Developed entrepreneurial skills to the underprivileged who shall actively participate in the local

value chain of coffee

Empowered potential and emerging other businesses like eco-tourism, eco-spa , coffee tours,

handicrafts , restaurants & other allied support services

Promoted cultural heritage of the indigenous communities while they earn more income & take

an active role in the economic progress of the community

Increased linkage with the potential markets in both local, national & international business

communities

*for further data validation, contact Mr. Fred Fredeluces (contact details thru Ms. Vie Reyes mobile 09178124477)

Testimonials available from different Community Roasting Business Units :

- Sagada, Mt. Province

- Lagawe, Ifugao

- Batangas City, Batangas

- Clark , Pampanga

- Cash & Carry Mall , Makati

- South Supermarket , Alabang

- Bacolod, Negros Occidental

- Gen. Santos, South Cotabato

- Jolo , Sulu

Deliverables :

Development & establishment of community based coffee roasting facilities - run, managed &

operated by the farmer clusters & womens groups in collaboration with existing NGOs (as interim ,

case to case basis ) in the strategic target areas . Approaches & strategies will be custom fit per

community .


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Project Support Mechanism :

Post harvest equipments , e.g. dehullers, depulpers, dryers

Roasting, Grinding & Packaging Units

Community Based Technology support & development One year Training program for Community Based Operations , Marketing & Business of Coffee

with Fair Trade value formation , including hardware & software

Coffee Seed Bank : **

These coffee roasting facilities will also purchase green coffee beans at Fair Trade prices

during coffee peak season. This Coffee Seed Bank would enable the facility to learn and be

conversant with green beans trading , both for the farmers and the buyers . This shall give the facility

ample supply of coffee to trade and / or roast & sell , till next harvest season.

Time Frame :

Manufacture & Delivery of Roasting Machines - Two (2) months from receipt of confirmed payment

Social Preparations / Skills & Capacity Training : One (1) - Two (2) Years Incubation & Development

depending on Communitys maturity level

Project Cost per Facility

Equipments : Php 558,700 *

Training with Business & Computer Systems

for Skills & Capacity including Monitoring : Php 350,000

(spread over one (1) year )Seed Bank (as a Loan Facility) : Php 50,000 500,000

Total Project Cost per Facility : Php 958,700 - 1,408,700**

(inclusive of one (1) year training program & coffee seed bank)

*Exclusive of Vat Charges & affected by inflation

Community Roasting Business Unit (CRBU) Projected Income (Overview)

Presented in the next three tables are three of the possible scenarios that a community may go

into. The following are the suggestions/requirements to consider.

The community must have nearby source for the coffee beans to be used.

Facility should be both accessible to farmers and the target consumer market .

It is recommended to sell the few high quality beans in the form of green AND roast sub-

standard or beans rejected by trades for local consumption/selling


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Maximize utilization of all green coffee beans from the best to the worst bean quality since

Rearden roasting machine accepts and roasts all kinds of beans and quality

A few scenarios are listed below. Option 1 is the present/common situation wherein they sell

only the green beans. In the computations overhead costs were not included (electricity, water, rent).

The net values computed are the extreme values, meaning the maximum cost is subtracted from the

least possible total revenue and vice versa.

Table 1: Option 1, estimates PHP/kg. COMMUNITY ONLY SELLS GREEN BEANS

Item Revenue Cost Net

Green Beans 85 200 40 60* (15) 160* to be revised & updated

Table 2: Option 2, estimates PHP/kg. COMMUNITY SELLS GREEN BEANS & ROASTING / GRINDING &

PACKING SERVICES.


Roasted Coffee 180 600

Green Beans 102* 220* (20) 515

Roasting Cost 8 (8)

Packaging Cost 5 15 (5 15)

Labor Cost 5 20 (5 20)

TOTAL 180 600 120 263 (83) 480* You need 1.2 kgs of green beans to make 1 kilo roasted coffee

Table 2 shows the direct costs associated with a dedicated community roaster. In the green

beans row it can be seen that the cost could go to as high as Php 220 (1 kilo of Arabica in Cordillera can

go as high as P200. You need 1.2 kgs to have an output of 1 kilo roasted coffee ). This happens when the

CRBU sources/uses/buys good quality green beans for roasting. It can also be noted that it can go as low

as Php 85/kg for robusta green beans , this on the other happens when the CRBU is partnered with

farmers.

When option 2 is chosen, another option is made possible. Table 3 shows the possible

ADDITIONAL income that can be generated.

Table 3: Option 3, estimates PHP/kg. COMMUNITY SELLS GREEN BEANS, PROVIDES ROASTING/

GRINDING / PACKAGING SERVICES AND ALSO SELLS BREWED COFFEE AS BEVERAGE .


Roasting Green Beans 180 600


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Brewed Coffee Cup 1

Brewed Coffee Cup 2

710 2,840**

2,500 5,000***

120 263**** 447 2,720

2,237 4,880

Cups 142* (142)

Creamer 180 (180)

Sugar 75 (75)

TOTAL 1

TOTAL 2

890 3,440

2,680 5,600

415 565

517 - 660

174 2474

2,020 3,580*142 is the amount of cups that can be made from 1 kg of roasted coffee. This is computed by dividing 1000 grams by 7 grams. 7 grams is the

international standard for the amount of coffee to be used per cup of coffee (6 8 oz cups ). For Filipino taste, the prescribed is 4 gms per

cup only - this will produce about 250 cups per kilo of roasted coffee grounds

** Computed by multiplying P10 - P20 by 142 cups . - ( assuming 7gms of coffee is used per cup )

***Computed by multiplying P10 P20 by 250 cups - (assuming 4 gms of coffee is used per cup )

**** Value is taken from the total roasted coffee cost in Table 2.

Table 4: Comparison of net values in PHP/kg.

Item Net Value Average

Option 1 (15) 160 45

Option 2 (83) 480 397

Option 3 2,020 3,580 2,800

Option 2 + 3 1,937 4,060 2,998.50

Kapet Buhay Investment Package Cost : multi-partite community based coffee agribusiness

The next table shows the amounts to be invested to start a CRBU

Table 5: List of Investment for Equipments and their cost (PHP) .

Item Description

First Processing - c/o PHILMECH

Dehuller Removes parchment skin , with motor 95,000

Solar Dryer Without furnace 10,000

Depulper

Moisture Meter

Dehulls all coffee bean varieties

Measures moisture content of bean

27,000

15,000


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Second Processing

Rearden Roasting Machine -

LPG or electric w/ Cooling Device

PATENT INVENTION

Awarded by Intellectual

Property Office

One kilo Coffee Roaster - Hot air, Fluidized

Bed , fully automatic, fully computerized ,

very user friendly , with Philippine Patent

Pending applied for . - estimate roasting

time is 9 minutes per kilo . Capacity is 1.5tons 4.5 tons per month .

(vat charges not included)

This device cools the beans by air after

roasting (included in roasting machine ) -

beans cool down in 2 minutes

P 350,000

Multi-purpose Grinder Grinds the roasted beans 32,000

Aluminium Foil 1 roll of 500 meter of aluminium foil that

has a two side seal. This is used for the

packaging of roasted beans

6,500

10kg weighing scale Used for weighing 1,000

1kg weighing scale Used for weighing smaller volumes 4,200

Cutting board Cuts aluminium foil roll for packaging 2,000

Impulse Sealer Seals the cut foil packaging

Aluminium foil Dispenser For aluminium foil use 1,000

Transport & Delivery Transport & Delivery of Equipments 15,000

Administrative & Development One (1) year comprehensive Training ,

Mentoring & Monitoring on Coffee Post

harvest processing, Roasting , packaging,

Labelling, marketing , Sales , Accounting ,

Monthly Monitoring including travel,

administrative & development expenses -

300,000

Computer System w/ Internet Link 50,000

Coffee Seed Bank Purchase Raw Green Coffee Beans

(may be treated as a micro-financing

scheme)

50,000 - 500,000 **

Php 958,700 - 1,408,700(vat charges where applicable)

** the coffee seed bank may be provided at a later time when the community roasting facility is ready

to go into the trading of green coffee beans with the farmers & buyers. There may be instances though

that the coffee seed bank should be inevitably packaged together with the equipments and training

program . This seed bank aims to develop and train the farmer clusters to trade green coffee beanswith the big stakeholders .

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KAPET BUHAY - DSWD SEA-K

Community - Based

Coffee Enterprise Program

PROGRAM OBJECTIVE :

This program is envisioned to be a synergetic strategy of public-private partnerships, wherein govt

institutions such as Dept. of Agriculture (DA) and Dept. of Social Welfare & Development (DSWD)

initiate collective programs to empower the small stakeholders, the coffee farmers, the urban / rural

mass-based poor , contributing to the countrys end goal of increasing coffee supply and lessen coffee

imports.

On the other hand, the poor mass-based consumers , contributing as the largest consumer component

in the instant coffee based market which is at Php 10 billion annually, shall directly and actively

participate and benefit by getting a market share of the P 10 billion , and earn substantial additional

income from this Fair Trade supply chain.

Furthermore, this program eventually aims to transform the mass-based consumers from brewedcoffee retailers to community roasters .

Kapet Buhay Program seeks to directly link the rural-based coffee farmers to the urban-poor coffee

consumers .

Pilot Project : NCR 4th

District - Pasay

Maximum No. of Target Households: 156

Minimum No. of Target Households : 16

Objective : Additional Household Income from Community-based coffee enterprises

Target Increase in Income : Php 5,870.00 additional weekly gross income . Kindly refer to Table 1 forillustration.

Table 1. Weekly Sales (actual figures taken from Baclaran Kapihan cum sari sari store)

Coffee Beverage cups Gross Sales Merchandise (Packs) Gross Sales

Ininstant blend 2 kgs P 5,120* 3 kgs P 750 **

* using 3.9 gms of ground coffee ininstant blend , one (1) kg will give 256 cups .

256 cups x 2 kgs = 512 cups

@ selling price of P 10 / cup = gross sales is P 5,120

** P250 selling retail price (current price) per kilo of coffee . current tinge price of 50 gms

per sachet is P 12.50

P250 x 3 kilos = P 750

ACTION PLANS :

Level 2 :


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Multi-Partite Action Plan With Existing Community Based Coffee Roasting Facilities In The Rural

Countryside . *

1. Bontoc, Mt. Province - CAR

2. Guinyangan, Quezon RFU 4A

3. Dolores, Quezon - RFU 4A

4. Calapan, Oriental Mindoro RFU 4B

5. Claveria, Misamis Oriental - RFU 10

6. Maramag, Bukidnon - RFU 10

7. Sen. Ninoy Aquino , Sultan Kudarat

8. Sagada, Mt. Province -

9. Baguio, Benguet -

10.Lagawe, Ifugao -

11.Clark , Pampanga -

12.Lipa, Batangas

13.Batangas City, Batangas

14.Cash & Carry Mall, Makati15.South Supermarket , Alabang

16.BF Almanza , Las Pinas

17.Tanjay, Negros Oriental

18.Bacolod, Negros Occidental (2 unts)

19.Liguasan, Sultan Kudarat

20.General Santos, South Cotabato

21.Jolo, Sulu (2 units)

* Including DSWD project sites and high volume traffic areas (24/7)

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Capital Investments

Runner Package : Maximum Php 590.00 investment *

Itakure (strainer) Php 150 / pc

Ground Coffee for Brewing 240/ kg

Ininstant Thermos optional 200 / pc

Kapihan Package : Php 6,500 up to Php 9,300 investment *

Stainless Takure w/ Strainer Php 3,000 / set

Ground Coffee for Brewing 1,000 / 5 kgs

Creamer 800 / 5 kgs

Brown sugar 250 / 5 kgs

Ininstant Thermos 2,000 / 10 pcs

*Prices are based on pilot / test case. Economies of scale apply.

ININSTANT KAPIHAN PACKAGE


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Kapihan concepts :

Kape sa baranggay hall kape at kapitolyo

Kape sa munisipyo kape at catering

Kape at resort kape at bangko

Kape at ospital kape at opisina

Kape sa bahay kape at bakery

Kape at carinderia Kape at sari-sari store

kape at parlor Kape at carinderia

kape at spa Kape at padyak tricycles

Kape at bus stations kape at punerarya

kape at computer shop Kape at sementeryo

Mayaman o mahirap man, nainom ng kape. Mula binyag hanggang lamay, may pa-kape

Contact Person for Bote Central, Inc. :

Vie C. Reyes

Vice Pres. Treasurer

Mobile : 0917.8124477

Email : [email protected]

Office tel: (+632) 805.0713 , (+632) 836.0216 , (+632) 801.2682www.arengga.com

Documents

Kapet Buhay Coffee Agribusiness Program 2012