Agriculture Project in the Philippines Based on Hybrid Hydroponics

This is an agriculture project using a Hybrid Hydroponics system based on Japanese technology. The method ensures self-sufficiency of vegetables.

The Hybrid hydroponics equipment which uses the technology of advanced nations (Japan) is built, and it contributes to the improvement in the potential agriculture power of the Philippines, regional vitalization, and employment development.

Since hydroponics can be applied even if the area is not agricultural, the enterprise can succeed in both agriculture and urban areas. By the ability to foster agriculture also in urban areas, hydroponics leads to addressing the disproportions between agriculture areas and business districts. It enables people who live in urban areas to choose agriculture for work. The improvement in an income of establishment of continuous agricultural technology with a high rate of output and a farmhouse is the purpose. The Philippines are globally famous as a place of production of fruits (banana, mango, pineapple, etc.). However, the production rate of vegetable is very low. The reason is related to the climate and the soil. As the Philippines have a subtropical climate, they are not suitable for the cultivation of soil crops. And the Philippines have a high percentage of soil of a volcanic ash fall deposit and there is not enough nutrition in this kind of soil. This is how the crops which can be grown are limited.

In recent years, the projects of hydroponics have increased, but vegetables still depend mostly on import. This is why people can eat green-leaf vegetables only in a hotel or a classy restaurant. However, most Filipino people are poor. They cannot go to a classy restaurant. We aim to always supply fresh vegetables to the average citizen, and safe through a hydroponics project. And we will contribute to job creation, poverty reduction, technology tie-up, economic growth to a developing country (Philippines).

At the Philippines, agriculture has performed briskly for a long time. Our banana, mango and pineapple plantations are especially famous in the world. However, there are a few problems: the agricultural technology level is low, there is an inconsistency of water management, the soil is volcanic ash, there is a shortage of manure and agricultural chemicals and there is a problem in circulation and marketing. In recent years, it has improved little by little supported by advanced nations. Hydroponics businesses exist, but they are small scale and their productivity is not good.

Marketing Strategy 1 (realistic)

Our hydroponics plant is using Japanese technology. The technology of hydroponics in Japan is the best in the world. The vegetables offered are good, without agrochemicals, grown using the technology. The candidates for sales are supermarkets, restaurants, markets on the street, etc. However, it is not efficient enough to do business in these places only. Therefore, we will also have a contract with brokers or wholesale houses, or trading companies and set bundling as our main purpose. Used our connections based on our 8 year experience in the Philippines.

Marketing strategy 2 (possibility)

Although the quality of the crops fundamentally grown by the hybrid hydroponics systems is a positive advertisement, in sales promotion, it may lead to a firm sales expansion and promotion by proposing in a direction where support of the government about a plant factory might materialize. Moreover, if medicinal herb is grown together with the usual vegetables and fruit, collaboration with a drug company or a cosmetic company is possible. It gazes at the whole situation of the Philippines and takes various possibilities into consideration.

Items of Initial Investment (1 ha = 3,300 square meters)

a. MH farming house: $976,893

(Frontage 10m x Depth 66m x 2 continuous houses) + (Frontage 10m x Depth 75m x 2 continuous houses) + (Frontage 5m x Depth 75m x 1 house)

Groundwork, Iron frame work, Aluminium and glass materials, Skylight equipment, Construction materials and shelf, Steel sub-materials, Curtain material, Curtain construction and film materials, Other equipment, Nursery bed, Insect repellent net construction

b. Set of attached structure: $992,936

Installation work and cool deck, Heating and cooling equipment construction (chiller equipment), Cultivation bet works, Water-works component, Cultivation panel, Electrical work, Civil engineering [cement] room, Drainage work, Seeding germination materials, Harvesting materials, Management device, Miscellaneous expenses

c. Sales commission and set of cost: $196,983

Total Initial Investment expenses: $2,166,812

In case of a debt loan: 5 to 8 years repayment, 2 - 5% interest rate

In case of equity: we could accept 100% ownership under the condition that we keep the management and control of the project. That means that you won’t need another consultant or officer like a Venture hands on or JV.