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ThesisAbstracts > Other Categories > A Feasibility Study On Soybean Production Cum Processing: Its Impact To Regional Development”
A Feasibility Study On Soybean Production Cum Processing: Its Impact To Regional Development”

Abstract Category: Other Categories
Course / Degree: Master in Business Administration
Institution / University: SAINT PAUL UNIVERSITY OF THE PHILIPPINES, Philippines
Published in: 1993


Thesis Abstract / Summary:


This study entitled: “A FEASIBILITY STUDY ON SOYBEAN PRODUCTION CUM PROCESSING: Its Impact to Regional Development” aims to explore the viability of producing soybeans in Isabela and processing the same for the consumption of region 02.

Specifically, the study endeavors to:

Present sufficient information and analyses on the five major aspects of the problem namely: Market, Technical, Financial, Organization and Management, and Socio-Economic implications.

To ascertain the need for and viability of Soy Bean Production and Processing, the answer to the following questions were sought:

a. Market Aspect

1)What are the benefits that can be derivedfrom the products?

2)What are the products to be produced?

3)Are the products produced competitive with other existing brands?

4)Is the production capacity of the productadequate for the market?

5)Are the products produced acceptable by theprospective market?

b. Technical Aspect

1)Are there enough areas for plantingsoybeans?

2)Are the farmers technically knowledgeable inproducing soybeans?

3)Are there enough technologies and skills intheprocessing of soybeans?

4)Are the machineries and equipment readilyavailable for processing?

c. Financial Aspect

1)Is there any financial assistance that canbe sought for this type of project?

2)Will the project be able to pay for any loan(financial assistance) acquired from itsearnings?

3)Will the management or the members of thecooperative earn a decent income from theproject?

4)Can the project attract the interest of theinvestors?

d. Organization and Management Aspect

1)What type of organizational structure willtheproject adopt?

2)Are there enough qualified people to managetheproposed project?

3)Do we have some assistance from the government regarding organization and development of an association that can bestmanage this type of a project?

e. Socio-Economic Aspect

1)Will the proposed project affect the lifestyle of our farmers?

2)Will it generate employment for theunemployed?

3)Will it earn additional investments for theregion?

4)Will it add to the dollar savings of ourcountry?

5)Will it improve the economic condition ofthecooperatives?


There were three (3) methods adopted by the researcher in gathering the necessary data for the market, technical, financial, socio-economic, and organization and management aspects of the study, these include, (1) Questionnaire, (2) Personal Interview, and (3) Library Technique or documentary Analysis.


The proposed project was found to be highly feasible and very profitable. The findings of the five major aspects of the project are presented below:

1. Market Aspect: The demand for soybeans as far as production is concerned is unquantifiable as long as the country is increasing import expense for it. To date, the average annual imports of soybeans are valued at $80,000,000, which when compared to the projects’ average production is only .02 percent or 65,358 kgs. only per annum.

In the finished products, such as soy sauce, tokwa, taho, soymilk, etc. these products are known to consumers, hence promotion of such is no longer needed. As far as this project is concerned, it can only vouch for quality standard and safety for human intake. The protein requirement of the human body as far as soybean is concerned is .0585 kg./day or 21.35 kgs. per year.

Selling prices of the project is lower by 20 percent which is very competitive with other brands.

The products can easily be sold, considering the willingness of groceries and store owners in the region to display and sell these products in their selling areas.

2. Technical Aspect

Production: The technology of planting soybeans was packaged by Philippine Council for Agriculture Resources, Research and Development (PCARRD). In fact, at present, plantation being done by the cooperative is under the supervision of PCARRD staff. Varieties of soybeans needed for production and processing were carefully considered to suit the needs of processors such as Nestle Philippines.

Certified seeds for planting have also been taken cared by PCARRD in coordination with the Department of Agriculture.

Processing: The technology of processing was also taken from the Department of Science and Technology. Machineries and equipment needed for processing were specially designed to suit the capacity of the processor.

Manpower: Labor requirements with six direct laborers and seven indirect laborers were easily be trained through trainings made available by the Department of Trade and Industry (DTI) and Department of Science and Technology (DOST).

3. Financial Aspect. Financial analyses and ratios derived from the projected financial statements disclosed that the project is:

3.1 Highly profitable, with a Return on Investment of 59

percent which is 26 percent higher than the 12%ninterest rate charged by the Land Bank of thePhilippines;

3.2 Liquid, having an average current asset worth 1.96 pesos to meet a peso current liability;

3.3 Solvent, with an average debt worth of 2.18:1 which means that for every peso worth of owners equity, there is a debt worth of two pesos and eighteencentavos. The debt equity ratio of the project on thefourth year of operation is .28:1 indicating that forevery peso worth of owner’s equity, there istremendous debt worth of twenty eight centavos. Hence,on the fifth year no more record of liability.

3.4 Capable of generating more than enough incomes to coverthe amortization of loan from the land Bank of thePhilippines; and

3.5 Capable of recovering its original investment of P5.048M within a very short period of 2.02 years.

4. Organization and Management Aspect. The producers cooperative found to be very feasible for the following reasons:

4.1 The farmer-member of said cooperative are more thanwilling to plant and process soybeans for higher valuethan rice and corn;

4.2 Said farmer producer and processors are members andmanager of the project hence, there will be no conflicting of interest and ideas;

4.3 Officials and Board of Directors, who are themselvesfarmer-members of the cooperative are mostlyprofessionals, hence, management skills is present;

4.4 Personnel of the Cooperative Development Authority instrong coordination with the Department of Trade andindustry are always times available to monitor andassist in managerial and skills training needed.

5. Socio-Economic Implication of the Project. The implication of the proposed project are very much felt on the economic and social situation of the country. The economic benefits are as follows:

5.1 Dollar expenditure of the country will be lessened through lower soybean importation;

5.2 The project will generate employment within the cooperative summing to thirteen personnel with salaries and wages amounting to P 500,400.00 in its initial year of operation.

5.3 A farmer- members involved in planting and processing of soybean will earn an additional income amounting to P 3,258.00 per year or 15 percent of its original income earned.

The farmer will lead a decent life. This in turn will build their self-esteem realizing belonging to one cooperative, one community;

Within the cooperative, there is an environment for better social relationship and a sense of unity among the members. Constant interaction will undoubtedly bring the members closer to one another and will allow them to know each other more intimately.

The project will give examples to the technical competence and capabilities of the cooperative members in areas, such as election proceedings, organization and management, planning and coordinating with the different sectors of the society, internal audit, and simple accounting and inventory. Most importantly, the members will acquire better technology on soy bean processing with various product lines.

The project will also develop a strong sense of responsibility among the members of the cooperative by way of giving their full support to the affairs of the cooperative, such as attending to regular and special meetings, and annual conferences, participating in the capital build-up of the cooperative, and patronizing its product. In the formulation of policies, rules and regulations aimed at improving the operation and management of the organization, full participation is also enjoined.

The “Bayanihan Spirit” will now be enforced as an effective tool of change, and hence the government will have lesser problems on juvenile delinquency, unemployment, criminal cases, homicide and others.


The findings of this study show that soybean production and processing at Ilagan, Isabela is highly feasible and very profitable. The identified contributions of the project socio-economic development of the region and to the national economic recovery program and long-term growth in general are just what the country needs today. The project can go a long way if a proper management and assistance from the part of the cooperative and the government will continue to further build better relationships for the future.


Based on the findings and conclusions made, the researcher strongly recommends the project for funding and its immediate implementation.

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