Mass Production of Dried Seaweeds in Bohol, Central Visayas

An Intensive Farming of Eucheuma Cottonii will take place to create jobs for coastline families and help augment the economic condition of Bohol

1. Eucheuma Cottonii has various applications: For food Applications like processed meat and poultry, Milk Drinks, ice cream, bread/ noodle and pasta, cakes and pastries, sauce and salad dressings, beer and wine;
   For Non-Food Applications like canned Petfood, personal care and pharma needs. We produce dried seaweeds and our markets can be exporters, processors and small scale traders.
2. Because of its various applications, business become stable. Manufacturers of food and nonfood produce quality products for the consumers worldwide
3. Because of the demand of seaweeds local and abroad, local producers involve themselves in the production of seaweeds

Facts

Legal status business

Not registered

Year of establishment

2010

Sales (US$)

Two years ago:
Last year:
This year (forecast):	0
Year 2 (forecast):	1,139,383
Year 3 (forecast):	3,166,905

Net profit after tax (US$)

Two years ago:
Last year:
This year (forecast):	0
Year 2 (forecast):	231,202
Year 3 (forecast):	896,324

Total number of Employees

Two years ago:
Last year:
This year (forecast):	215
Year 2 (forecast):	415
Year 3 (forecast):	415

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...)	30,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...)	10,000
Total finance needed (US$)	40,000

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash	3,000
Loans (debt)	37,000
Shares in your company that you offer to investors (equity)	0
Other sources	0
Total finance needed (US$)	40,000

The Business
What is your product/service?

The company name is Bohol Trading Company. It will be situated in Bohol nearby the plantation. The product is dried seaweeds. We will culture Eucheuma Cottonii in an open sea because it thrives in water with high salinity. Eucheuma cottonii has a higher value compared to other varieties of seaweeds that is why it costs much in the market local and abroad. We will culture Eucheuma Cottonii in the two coastal areas of Bohol namely; Talibon, Getafe. These places are ideal for seaweeds culture because of its strategic location.

To follow our planting schedule, we will culture Eucheuma Cottonii at Talibon on the first year of operation (year 2010) starting with 3 hectares. This is during the first crop. Each hectare will be taken cared by 1 family (one head together with three other casuals). On the second crop, it becomes double until it reaches to the seventh crop, the last crop for one whole year planting. During the last cropping (7th crop), almost 48 hectares have been planted with eucheuma cottonii. We will use the progressive type in saturating the area.

During the second year (year 2011) of operation, there will be two farms that operate simultaneously: Talibon and Getafe. As Talibon continues to operate planting 48 hectares every crop, Getafe farm will experience a progressive type starting with 3 hectares during the first crop. During the second crop, it will double until we reach the 7th crop. Just like in Talibon, our target coverage area will be 48 hectares also.

During the third year of operation (year 2012), both farms operate simultaneously maximizing 48 hectares planted with Eucheuma Cottonii from first cropping up to the last.

To orient ourselves how the business goes, one crop will last for 45 to 60 days before harvesting, which means you can start harvesting when it reaches to 45th day of planting up to the 60th day. Beyond 60th day, there is no significant growth in the plant anymore reason enough that it should be harvested (BFAR). (Using the 45 to 60 days schedule, we are supposed to come up with 8 crops in a year. In order to give rest period for our labor force, we decided to come up to 7 crops only in a year). During the start of planting each plant weighs 100 gms but during harvesting it will weigh 1200 gms. There is a growth rate of approximately 3% everyday. Each hectare can accomodate 4,800 kilos of fresh seaweeds. During harvest, it will yield to about 28,800 kilos of fresh seaweeds. Of course, we need to give allowances for the mortality rate. After harvesting, we need to dry them sun dried for 2 to 3 days. Seven kilos of fresh seaweeds is equivalent to 1 kilo of dried seaweed. (7:1). Big factor for good harvest is season. In short, there are seasons where harvests are not that good because of the weather condition

Let me explain how we were able to come up with our sales target.
Assumptions:
Culture Period: 45 days
Seedlings per hectare: 4800 kilos
Initial Weight/ Hang: 100 gms
Harvest Weight: 1,200 gms
For Drying : 80%
Mortality rate: 20% (Normal is 10%)

On the first year of operation in Talibon,
First crop, 3 hectares = 17,006 kilos.
second crop, 6 hectares = 36,206 kilos.
third crop, 12 hectares = 72,411 kilos.
fourth crop, 24 hectares = 144,823 kilos.
fifth crop, 48 hectares = 289,646 kilos.
sixth, 48 hectares = 289,646
7th crop, 48 hectares = 289,646 kilos.
A conservative amount of $1 per kilo is the buying price that we use. Currently, the farm gate price of seaweeds is $1.170. Using our conservative price of $1, the total figure is 1,139,383.

On the second year of operation where there will be two farms working together: Getafe and Talibon. As Talibon works every crop with 48 hectares, Getafe will work as well starting with 3 hectares just like what Talibon did. The operation will continue simultaneously until Getafe will reach the 7th crop reaching also 48 hectares. Talibon will harvest 2,027,522 kilos while Getafe will harvest 1,139,384 kilos. To compute, their total harvest will be 3,166,905. And the amount is $3,166,905.

On the third year of operation where the two farms will work simultaneously again, yet, both will start the season planting 48 hectares together. Each farm will harvest 2,027,522 kilos from the 48 hectares. To total them all, we will have 4,055,044 kilos of dried seaweeds. And the amount will be $4,055,044.
The total production of the company in 3 year-time will be 8,361,334 kilos or 8,362 MT.

The operation is intensive. The company will finance the seedlings and provide our farmers necessary equipments for use especially motor boats in order to become productive and be able to meet expected yield per farm. We will offer attractive compensation and fringe benefits since they are the producing members of the company. Salary increase will motivate them to work harder for they will be evaluated according to their performance.

The company will give trainings and seminars to the farmers for standard operation procedure teaching them the proper way to plant, harvest and dry although they are quite familiar already with this business.

On the marketing side, coupled with all the list of buyers in our files, the company through the effort of the marketing force will double their effort in opening opportunities to those potential local buyers.

The trend of the world market is high with regards to the demand on Eucheuma cottonii. The carrageenan market for kappa is big, making eucheuma cottonii seaweed high. As long as prices is competitive and the quality is good, the demand for eucheuma continuous. Annually, the world demand of eucheuma cottonii is continuously rising up to 10%. Statistics show as of 2003, Philippines came up only to 127,693.2 MT; Indonesia, 38,834.10 MT; Zanzibar, 1,378.00 MT; Malaysia, 4,900.00 MT, with the total of 170,805.30 MT. Despite the huge production of eucheuma cottonii from the different producing countries, still supplies are not enough. The world demand continuously rising. Last 2005, our production rose up to 1,338,597 MT without mentioning the harvest of other producing countries.
Right now, I should say that the world demand is unlimited as far as individual production capacity is concerned. And so, i can claim that the total market percentage for an individual producer is 100%.
What customer need/problem do your products/services satisfy?

Basically it answers the problem of the issue of longevity of life and ageing. Seaweeds maintain the balance of the toxic substances in the body. Too much toxins in the body can cause ageing. Research shows.
Other uses that seaweeds can satisfy our customers:
For food applications:

1. Processed Meat - substitutes fat and serves as meat extender and binder; enhances juiciness, increases yield; prevents fat separation
2. Processed Poultry - controls dehydration while frozen; enhances juiciness and increases yield.
3. Milk/Chocolate Milk Drink - stabilizes and improves viscosity
4. Ice Cream - prevents large ice crystal formation; enhances excellent flavor release.
5. Flan/Dessert Gel/ Confectionary - serves as gelling agent; enhances flavor release and excellent mouthfeel
6. Bread/ Noodle/ pasta - increase yield and improves texture and mouthfeel
7. Sauce/ Salad Dressing - thickens and improves viscosity
8. Cakes/ Pastries - substitutes butter and improves texture and mouthfeel
9. Beer/ Wine/ Vinegar - accelerates and improves clarity

For Non-Food Application:
Canned Petfood
moist meat - serves as gelling agent and stabilizing agent
moist whole fish - serves as binder
Personal care/ Pharmaceutical - serves as thickener/ stabilizer/ binder
Culture Media - serves as gelling agent and stabilizer.
How will you make the product/service?

Production process is described into stages:

1. CULTURE PREPARATION - necessary preparation of materials such as banca, anchors, soft ties, nylon ropes and install needed structures whether stalking or floating method prior to planting; source out quality seedlings from the vicinity to ensure easy transport to the farm site; Propagules must be protected from direct exposure to sun and rain. Transport containers like styrofoam is best recommended although ordinary jute sacks will suffice; seedlings must be immersed in water upon arrival in the seedling bun; only young portion of the plant must be selected for planting to ensure faster growth; use a clean, sharp stainless steel knife for cutting branches.
2. PREPARATION FOR MATERIALS - Prepare a measuring stick made of bamboo about 0.64 cm (1/4 inch thick), 7.6 cm (3 inches wide) and 20.3 cm (8 inches) long; Wind the flat yarn 25 times around the stick; Insert a sharp knife and cut the yarn at one end. Cut the yarn similarly at the other end; Get one strip and tie it tightly around one end of the strips to make a bundle; Split each strip into two and make a tight knot at each tip; Tie nylon lines to stakes; After clearing the area, measure the exact dimensions of the farm. Commence posting by using the pointed iron bar or "bara"; Position the stakes such that nylon lines will be parallel to the water current.
3. FARM MANAGEMENT - Visit farm daily; Keep plants always clean (mus, rough seaweeds, sargasum, etc); Check and prune the 'ice-ice' infected portion of the plants; Tighten loose lines and tie ties (plastic straw); Repair or replace broken/damaged materials such as bamboos or monolines; Adjust the monolines if necessary (slow growth or discoloration, etc)
4. HARVESTING - we will practice partial harvesting where it is done by pruning the initial seedlings planted to fill-up the allocated planting area after 2-3 weeks period; Harvested after 45 days culture for expansion purposes; The most common harvest of farmers is to harvest the whole plant, rather prune the plant. From the harvested plant, the best looking plants are selected for use as seedlings for the next crop. These may be stored in the seedbed if these cannot be planted immediately. Harvested seaweeds are placed in the banca then brought to the farmhouse drying station.
5. TRANSPORT OF SEED STOCKS - When transport lasts for 8 hours, use plastic bags or rice sacks. Put cuttings loosely inside the bags and dip them into seawater before loading them; Store bags in cool, well covered spacious part of the boat; Never place the bags on to of each other; Plant transported cuttings as soon as possible. The longer you store them, the more dead cuttings there will be. Usually 10% transported cuttings die; Transport cuttings to the farm carefully. Cover them with wet cloth to protect from sunlight, rain or wind; Sprinkle cuttings with fresh seawater every 1-2 hours to maintain temperature and freshness: Don't let gas or oil touch the cuttings.My supplies of seedlings come from BFAR Central Visayas.
   My contact person: Mr. Andres Bojos
   Regional Division BFAR
   Arellano Avenue
   Pier Area, Cebu City
   Tel No. (032) 256-2772
6. POST HARVEST PREPARATION - Cleaning - before drying the seaweeds it is a must to clean thoroughly the materials to ensure the good quality product. Cleaning should include removal of all foreign materials such as plastci straw, stones, woods and most important any sand sticking to the thalli. Sand causes severe problems during carageenan extraction due to its abrasive properties.Drying - seaweeds should be dried immediately after harvest, kept clean and not allowed to come in contact with fresh water. Solar drying is the most popular and low cost option taking 2 - 3 days under ideal condition. The wet to dry ratio for Kapphycus or Eucheuma cottonii is 7:1 kilos.

To ensure the quality of the product under the following risk factors.
TYPHOON OR DURING RAINY SEASON - seaweeds must be immersed under water at least 30 cm from the surface of the water to avoid close contact with fresh water. Farmers must secure the poles where lines are tied that is why daily monitoring is necessary.
DISEASES - examples of diseases are: ice-ice, blackening of the thali, bacterial colonization. Most common reasons for these diseases are some part of the seedlings appear visible above the surface of the water. Poor management is the reason for such occurrences. In order to avoid all these, farmers must do their job visit everyday the area and check whether all the seedlings are in good condition. Once disease is about to develop remove the parts that are infected otherwise everything will be damaged.
One way to ensure also the quality of the product, before planting check the salinity of the water. Seaweeds thrive on high salinity. Only fresh water decreases the salinity thus produce low quality seaweeds. Avoid planting nearby river where fresh water flows. Bohol is the ideal place to culture seaweeds because the salinity of the water is high.
Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

SIAP is a Non Stock Corporation registered in the Securities and Exchange Commision (SEC) of the Republic of the Philippines with registration number: CE-00463 and was duely registered on September 19, 1985 whose major objective is the continual development and improvement of the Seaweed Industry in the Philippines. As of today, SIAP members have grown from a few Carrageenan Processors to more than 100,000 which includes 13 Raw Seaweed Exporters, 8 Processors, Seaweed Traders and Seaweed Farmers and their families. Very soon, our company will become a member of this association.

SIAP will serve as our vehicle to keep closer to our local buyers and we market our product using a business-to-business model. There is not much difficulty in marketing the product because buyers are our associates and the market demand is unlimited.

For some reasons, I found difficulty to solicit a letter of intent so i decided to send business proposal letters to our clients. The letter contains an appeal to include us as one of their suppliers as soon as we start operating. MCPI Corporation alone which is based in Cebu City has a projected requirement for the year 2010 of 50,000 metric tons said Mr Larry Zulueta, the Purchaser. Please see attached to view the content of the letter.

Allow me to share some news article that show and discuss about the strong demand of seaweed local and abroad. This may not be in a form of contracts or a Letter of Intent per se but these articles can express already substantial explanation about why our company found strong determination to get involved in the production of seaweeds.
As Mr Maximo Ricohermoso, President of MCPI and an officer of SIAP once said to me during our meeting: "News articles can be a strong vehicle for information dissemination because news articles are public documents where social and business action has to take place." As to my end, i will send you through attachments the following articles. The rest, pls open the following website;
1. www.sunstar.com.ph/static/ceb/2004/10/11bus/seaweed.process
2.http://www.bohol.gov.ph/news/news.php?newsid=175

Another marketing strategy is through the use of technology. We can develop market abroad the easiest, economical and fastest way. Computer will work for us.
To establish other local market, our company will form a marketing force. Our marketing department in coordination with the production department will educate our marketing people before they saturate the open market. Proper education of the product, pricing, packaging system, delivery schedule and system and mode of payment must well be clarified before they start their footwork.

As our protocol we will invite our buyers for an ocular inspection. This method will help develop that feeling of confidence to the company.

Our distribution strategy will follow the strict compliance of schedule. The product which is ready for shipment is stored in the big warehouse. As soon as we receive the payment, we will automatically arrange with the carrier the shipment of the goods.

MODE OF PAYMENT
For Delivered Goods:
Most of our buyers demand FOB Cebu since they are situated in Cebu City. There may be a difference of price against pick-up price, payment will be made this way. 80% be given as soon as the deliveries arrive and the remaining balance of 20% be given after 2 weeks when buyers have completely done their product checking.

For Pick-Up Goods:
Since we are talking of hundreds of thousands of pesos or maybe millions for every transaction, in cases of pick-up, the buyer is encouraged to make payment through the bank. The bank will issue receipt forwarded to our cashier and there will be calls (between cashier and the bank) to confirm that there is a transaction going on, then arrangement to containerize the goods will commence until the whole transaction is over.
To whom are you selling, what is your market?

Our buyers are all institutionalized one. There are 13 processors and 8 exporters of seaweeds and 9 Seaweed Traders. To name them all:

SEAWEED PROCESSORS IN THE PHIL

1. Mr. Expedito Dublin
Philippine Representative
Cargill Texturizing Solution
Regner Mier Zentrum
Door 106 V. Rama Avenue Guadalupe
Cebu City

2. Mr Anastacio Cambonga
General Manager
GENU PRODUCTS PHILS. CORP.
Suite 903 Keppel Center
Samar Loop cor. Cardinal Rosales Ave.
Cebu City

3. Mr Antonio Yuri Yap
General Manager
INGREDIENTS AND GUMS CORP.
Tamiao, Compostela, Cebu

4. Ms Amelia Aranas
Managing Director
KERRY FOOD CORP.
GF/SFB #1 MEPZA, Pusok
Lapu-lapu City
Cebu

5. Mr Manuel Luy
General Manager
LM ZAMBOANGA UNITED TRADING
#4 Manuel Luy Rojo Compund
Sta. Catalina ST. Zamboanga City

6. Mr Michael Tan
President
MCPI CORPORATION
926 Araneta Ave., Quezon City

7. Mr Maximo Ricohermoso
President
MCPI CORPORATION
Tugbongan, Consolacion Cebu

8. Mr Richard Radier
General Manager
CARGILL TEXTURIZING SOLUTION
REGNER MIER ZENTRUM
29th floor Citibank Tower
8741 Paseo de Roxas, Makati City

9. Mr Ben Avarado
General Manager
POLYSACHARIDE CORP.
Maasin, Zamboanga City

10. Mr Avelino Zambo
Executive Vice-President
SHEMBERG BIOTECH CORP.
Carmen, Cebu

11. Mr Manuel Solante Jr.
Vice-President, Operations
SHEMBERG FOOD INGREDIENTS CORP.
MEPZ Road, Lapu-lapu City

12. Mr Benson Dakay
Chief Executive Officer
SHEMBERG MARKETING CORP
Pakna-an, Mandaue City

13. Mr Norman Wee
President
PCI WORLDWIDE INC.
1403 Summit One Tower
#530 Shaw Blvd., Mandaluyong City

SEAWEED EXPORTERS IN THE PHIL

1. Mr Christian Pile
General Manager
ASIAGEL CORP.
Blk 1 Lot 2 Villa Lourdes
Congressional Ave., Brgy, Bahaytoro
Quezon City

2. Mr Bernabe Ponla
Proprietor / Manager
B.A. PONLA ENTERPRISES
St. Jude Acre Village, Pardo
Cebu City

3. Mrs. Liza Yu
Manager / Owner
BAROY MARINE PRODUCTS
Sto. Nino Villlage, Dimaporo St
Baroy, Lanao Del Norte

4. Mr Ronaldo Patalinghug
Manager
LM Aquatic Services and Res. Corp
494 Pusok, Lapulapu City
Cebu

5. Mr Ismael Abubakar
General Manager
IA BUSINESS ENTERPRISES
IA Business ENt. Compound
Lunzuran Heights, Putik

6. Mr John Cabanes
General Manager
KING HOC SEAWEED ENT.
Rojo Compound, Sta. Catalina ST
Zamboanga City

7.Mr Carmelito New
General Manager
SULBASCO GEN. TRADING
740 Gov. Ramos Ave., Sta. Maria
Zamboanga City

8. Mr. Vicente Wee
General manager
V.W. MARINE RESOURCES, INTL
Talon-talon, Zamboanga City

SEAWEED TRADERS IN THE PHIL

1. Mr. Ben Escolano
General Manager
BEVESEA ENTERPRISES
Back C. Saavedra St.
Pilit, Cabangcalan, Mandaue City

2. Mrs. Florena Saraspi
President
FLORIAM AQUA MARINE TRADING
Block 7, Lot 26 Benevelonce St.
San Bartolome, Novaliches
Quezon City

3. Mr. John Alvarez
Manager
GLOBAL OCEAN PRODUCTS INC.
Km. 4, Talontalon, Zamboanga City

4. Mr. Harry Chua
General Manager
HLC TRADING
Zamboanga City

5. Mr. Arthur Dy
General Manager
KQ MARKETING
7th Road North Reclamation Area
Cebu City

6. Mr. Frederick Chua
General Manager
LUZON COPRA TRADERS
#75 Camapaner St., Zamboanga City

7. Father Emeterio Barcelon, SG
Executive Director
AGAROPHYTA PHILS. INC.
3rd Floor Museum Bldg.
Xavier University, Corrales Ave.
Cagayan de Oro City
Misamis Oriental

8. Ms. Zhuvaida Pantaran
Manager
ZSP ENTERPRISES
Lower Banale, Pagadian City
Zamboanga Del Sur

9. Mr. Vicente Galarse
Proprietor
D&T INT'L. SEAWEEDS EXPORT
27 J Sindulan St. Mabolo
Cebu City
Describe your competitors?

I look at seaweed business in a macro level perspective. Local producers are not really competing each other. One, two or more producers cannot sustain the whole market because the demand is so huge. Other than Phil, there are other foreign exporters. and they produce more than us. Studies show Indonesia is the leading exporter of Eucheuma Cottonii now. Reasons: the unfavorable weather condition; increase in fuel prices; lack of financing.
What makes your business different/better than your competitors (competitive advantage)?

My business will focus on production. We are not simply consolidators of stocks because we mean long term business.
Philippine seaweeds has a competitive advantage as far as seaweeds is concerned. Compared to Indonesia, Phil eucheuma cottonii has a better quality both in recovery and viscocity; in terms of areas, Philippines has a wider coastal areas and sea water is more suitable to Eucheuma cottonii; in terms of labor force, Filipinos are used to sea type of livelihood; in terms of technology, we have an advance technology on farming and extraction of carrageenan; in terms of processing plants, we have 3 refineries and 12 semi-refined processing plants for carrageenan; Philippine and private sector forged a partnership agreement to develop teh seaweed industry; SIAP is a member of MARINALG INTERNATIONAL (World Association of Seaweed Producers) that helps solve non-Tariff barriers for carrageenan.
What makes your business, your product or service innovative?

My business strategy is new as far as management is concerned. Unlike other businessmen, I will give incentives to my employees according to performance and my employees will enjoy benefits like security (SSS), 13th month, and salary increase for the regular employees. With this kind of approach, this business becomes stable. And because the farmers earn their living through this business, they will come to protect my business because they enjoy working with me and they benefit from it as well.
What is something new about the product is the assurance that the company can supply for the growing market demand both local and foreign. We will deliver good quality product. As the business grows, so also my employees.
How will you ensure the growth of your business?

It is very important that the following key areas must be monitored

1. FARM MANAGEMENT - Our product is the life blood of the company. There must be close monitoring of the production, its operation and the expected output. Production covers how the employees perform their job in site. Do they follow the standards set in planting, harvesting to drying? Do they produce expected volume of production? Close evaluation must always be conducted.

A. WAREHOUSE PROCEDURE: To ensure repeat business and good quality products being delivered, our warehouse will be divided in 3 stations:
1. Quality Control Station - This station receives dried seaweeds directly from the farm placed in black sacks. This station will check, a) if seaweeds have been dried following the standard texture; b) to separate impurities (like, sand) from the seaweeds. Our product must be 0% free from impurities. In order to achieve this, as soon as it arrives to the warehouse, it will be immediately placed in a sifter mechanically operated.
2. Bagging Station - As soon as the product passed the QC, it will be placed in a green sack which means ready for shipment. Each sack will contain 100 kgs of dried seaweeds and piled up in a pallet containing 10 sacks on it. Each pallet will weigh 1000 kgs of dried seaweeds.
3. Stocking Station - In this station through the use of a forklift, proper stocking will be achieve in an orderly manner.

B. INVENTORY CHECKING:
It will be conducted every end of the month against the Delivery-Out. Each supervisor in the farm must have a copy of their actual production reconciled in the Delivery-In (Warehouse record via computer).

To implement a system for delivery-Out, from the cashier receipts are color-coded: White, Blue and Pink.
White - Original copy goes to the customer
Blue - Warehouse copy
Pink - Guard copy

C. To Check and Balance the Sales:
Beginning Balance Minus the Ending Balance equals to Delivery Out. The Deliver-Out must reconcile with the color coded receipts from the warehouse and the guard.

2. check sales and ensure full customer satisfaction. Marketing people must double their forces to market the product. If there is a need to replace incompetent people, i will do so. Repeat business only happens if customers are satisfied about our product. Marketing people's job is not only to make sales but receives feedback from our buyers how we perform our task for further improvement.

3. Are the employees satisfied about the policies and benefits that the company is offering? My employees are all important. But farmers are the most important people in the company because they are the producing sector and therefore they deserve to be given extra benefit.

All these key areas ensure that my business will grow.

CASH POSITIONING
There are two positions where we can protect our resources.
A. To ensure cash protection against robberies and thieves, the company is protected with time alarm vault and guards on post. We do not also encourage the cashier to keep huge amount on hand. As the case maybe, we will keep in touch with the bank for security reason so anytime they can pick up the money from us for safe keeping.

In addition to the preceding positions, an insurance can somehow relieve us from this threatening occasion.
The Entrepreneur & Management
Describe the entrepreneur & management

It is my dream to work as entrepreneur ever since because i have the strong willpower, skills and knowledge. My father taught me to be one when he was still alive. I am 47 years old and energetic. With me are also visionaries like me who want to make a difference in their life. They are professionals in their own field of expertise. Miss Sally Durias is a graduate of marketing, Miss Hermie T. Bola an accountant and an educator as well; and Mr Yulo Lumagbas, an experienced production manager . Under his jurisdiction, he will oversee the management of the warehouse. We also have consultants with us who is currently working in Bureau of Fisheries and Aquatic Resources Quezon City Branch. Their names are: Isidro Velayo (Aquaculturist specializing seaweed culture); Ms Priscila Regaspi (Supervisor, Aquaculture Division).
I have several experiences. 1. i used to cook and put up my own food business selling pizzas; 2. i put up an experimental nursery farm culturing gracillaria (another kind of seaweeds) in Mindoro and Lucena ;
Though I have an inclination of pursuing into business, my educational background does not show. I am a graduate of Arts and Sciences in the seminary. I have a double graduate studies also and one is in Ateneo de Manila.
I am a professor by profession. For almost 12 years in the academe, i have plenty of skills to exhibit for the interest of this business and the people who will take part of this business. I will be the one to exercise full authority over all areas like management, marketing, production with the assistance of the key people in my team. Planning gives structure to our business. Once in a while and or necessity arises, the management team is willing to submit themselves for a brain storming activity for the growth and betterment of the company.
Inasmuch as our company requires specialized people to handle sensitive positions, one-fourth of our employees come from Manila. Most of them are our students who have exhibited some potentials during their academic formation. Three-fourth of my employees are all locals.
What specifically makes you and (if relevant) your management team most qualified to build this business?

The most important things that qualify me to build this business are my skills, my past experiences, my strong willpower and determination for success and lastly, knowledge. As i mature, the more my skills become sharpened. For 12 years in the academe, i develop better my technical, management and interpersonal relations skills. In my seminary years i used to handle livelihood programs, giving lectures and holding seminars.
My past experiences taught me to become wiser and clever in terms of handling my resources like money, people especially dealing with different kinds of clients. Whatever lessons i learned from the past i will use them as my additional weapon for my next battle.
I have the knowledge on the ins and outs of the business. In fact without assistance from anybody else, I am the one who conceptualized this business plan.
Just like me, my management team are all experienced professionals in their own field of expertise. They have been in the industry for several years. I personally know them by heart and their level of commitments to our objective is beyond doubt. All of us aim for national progress because we all believe that every FIlipino deserves not only a decent living but an opportunity as well for everyone to become a well rounded person.
How much time do/will you expect to spend per week in the business?

I want my business to become a success. i cannot afford to give half only of my time. This is a big break in my life that is why i demand total commitment even to my staff and my team. we have a goal to achieve.
Development
How does your business improve the local living standards (social and environmental)?

I have a vision that my business will change the life of the marginalized families in the province of Bohol. The company will try its very best to offer a hand with the local municipality in implementing programs designed for the welfare of the people.

Directly, on the first year of operation, 250 families will experience the signs of progress in their locality using the employee-employer concept of management.

On the second quarter of 2011, as part of my expansion program, the company will start to arrange the campaign of unifying all the seaweed producers of Bohol. In this campaign, I will stress the drive for common action for a progressive Bohol through the concept of cooperative. On this same year, the company will not function anymore as a producer but as a processor tied up with the cooperative as our supplier of raw dried seaweeds. The name of the cooperative is Bohol Producers" Cooperative. I will serve as the adviser of the coop. Since i have enough capital for expansion, i will enter into contract with importers of Carrageenan from the different parts of the globe. I will operate as a processor of Refined and semi refined carrageenan in Bohol turning raw dried seaweeds into powderized form. With my Importers Directory at hand, i won't encounter hard times looking for one. And as such i can offer the best price ever to our local producers. The record shows that a buying price of refined carrageenan abroad reaches to $11 per kilo.

The diagram below shows how the cooperative will work:
Example:
A. Member : A
B. Production of Raw Dried Seaweeds to be sold: 5,000 kilos
C. Buying Price: P 100 per kilo
D. Total Amount: P 500,000
E. Payment for the Goods (50%) : P 250,000
F. Deposit (Savings with 15% interest/ yr) (25%): P 125,000
G. Priority Projects (25%) : P 125,000
H. My Company's Share (100% of the Priority Project): P 125,000

Systems and Procedures:
1. Anytime the member delivers his goods, the passbook must be countersigned by both. I.D. must be presented as well.
2. Quality control officer should scrutinize the quality of the seaweeds delivered.
3. Advances (cash or in kind) will be deducted outright.
4. Every end of the fiscal year, 60 % of their savings will be returned back to the member.
5. The other 40% will be used for salary of the staff, maintenance and the rest for safe keeping.
6. Priority projects cover education, health, livelihood programs, SSS and Pag-ibig membership fees, construction or expansion of the area.
7. The company on the other hand, extends their share equals to the amount contributed by the members in the "Priority Projects"
78 To gain trust and confidence from the members, transparency must be exercised. Officers must conduct monthly financial reports, make some updates on the issues regarding seaweed production, solve existing problems and discuss future projects.

On the other hand, applicants must do their part as well.
1. The applicant must be the one to secure their own permit to farm
2. The applicant must fill up an application form and comply all the requirements asked of them i.e. id picture, residence certificate
3. the applicant must have at least two referrals who are also members of the cooperative.

The concept of cooperative management will boost the signs of progress. From the diagram above, i could see some signs of hope that Bohol will shine and become known. By virtue of our commitment, the company will design a program that every member will benefit including their family members. This kind of management style will encourage non members to join.
Province of Bohol is considered a potential food granary of the Central Visayas Region. The company then is aiming also to tap other agricultural and marine products for export like rice, coconut, prawns, ubi kinampay (an aromatic purple yam), vegetables, fruits, crabs, mangoes, copra, bananas, and even handicrafts. Therefore, non seaweed producers can have access to become members of the cooperative because we will also organize one for them. This may take a long time but this is my goal. Again, in virtue of my commitment, i will help them establish and find direct buyers from abroad for all these products. These cooperatives will follow the same and uniform management style.

I will form groups of men and women who remain jobless and attend a livelihood programs sponsored by the company. I will develop myself people with entrepreneural attitude.

Just in case, the supply of raw dried seaweeds is no longer enough for my processing plant in Bohol, i will develop other nearby areas where seaweeds farming is also possible using the same management strategy.

At this point in time almost thousands of families will come to enjoy the rise of a modernized lifestyle in Bohol.

I strongly believe that in the years to come my businesses and the way how i manage them will shape my province into a more progressive one.