Quezoncitybranch: Polytechnic University of The Philippines
Quezoncitybranch: Polytechnic University of The Philippines
Quezoncitybranch: Polytechnic University of The Philippines
Feasibility Study
Doctor, Joenard C.
Fornoles, Pablito F.
Pacyaan, Fhilip S.
Beginning Capital
The Corporation will acquire pre-operating funds by applying bank loan to BDO
amounting to one million pesos (P1, 000,000.00) payable within 3 year terms. The
expected interest in the bank is 4.27% per annum, a total of 12.81% in three years. Also,
shareholders/owners of the company will share a proportionate capital worth of one
hundred thousand pesos (P100, 000.00) each.
Plant Construction
The estimated project cost amounts to P1, 000, 000.00. The owners of the corporation and the
general manager hired will sign a contract with building contractors to help in establishing the
plant. In addition, they are the one who will make sure that the manufacturing plant is built in the
expected date and within proper structure.
Management during the Operating Period
Organizational Chart
The figure and table shown on the next page presents the organizational chart of the
management flow as well as the functions of each unit involved in the business.
Owners/Shareholders
General Manager
Growers/Workers Driver
The duties and responsibilities of the following employees are enumerated below.
Owners/Shareholders Share a proportional amount of capital and liable for any legal
problems and business issues.
General Manager Oversees all of the departments as well as the day-to-day
operations of the business.
Responsible for effective planning, organizing, leading and
controlling of the overall decisions to achieve set goals and
objectives of the organization.
Financial Head They have to devise and set up a quarterly/annual budget
and fiscal plan, and present it in all heads of the departments.
Assures that the financial statements are maintained along
with the complete work.
Operation/Production The responsibilities of a production head involve the ff.
Head (Quality Control) process: planning and operating production systems and
subsystems.
It also includes quality assurance, materials management,
and implementing health and safety procedures.
Supervises the farm workers.
Sales and Distribution In charge of preparation and deliveries of product orders from
Head production site to the proper delivery place of the client.
Responsible in monitoring and keeping track of all products
being distributed.
Responsible in establishing and maintaining best marketing
practices and strategies that meets the company’s objectives
and goals.
In charge with profitability and sales reporting, and pricing
strategies.
Security and Safety Monitor company’s property and maintain a safe and secure
Officer environment
Watch for signs of crime or disorder; investigate disturbances
Act lawfully at all times in direct defense of life or property
Patrol premises randomly and regularly, including buildings
and perimeter
Report any suspicious/unusual occurrences to authorities and
management
The following requirements and qualifications must be met by the Metro Mushroom Growers
Corporation employees:
Mushroom growers must be skilled in Mushroom Production. They are required to have
an intensive knowledge in proper sanitary for waste disposals, including maintenance to
properly manage the mushroom growing area. More so, employees for level 2 and 3 positions
must have at least 2 years working experience. The Level should be followed and evaluated by
the owners and manager based on the current skills and responsibilities they possess.
Level 1 - must be knowledgeable in basic mushroom production
a. Tissue culture isolation as starter propagation
b. Grain spawn production (mushroom seeds)
c. Bag cultivation (fruiting bag production)
d. Growing house management
e. Sanitation warehouse
Source. Payscale.com
A. SSS Benefits
B. PAG-IBIG
C. PhilHealth
D. 13th Month Pay
E. Withholding Taxes
Complementary incentives from the company
Compensation Schedule
PAYROLL SCHEDULE
CONTRIBUTION (DEDUCTION) TOTAL MONTHLY TOTAL ANNUAL TAXABLE NET PAY NET PAY
2019-2021 TAX DUE
COMPENSATION SSS PHILHEALTH PAGIBIG CONTRIBUTION CONTRIBUTION INCOME AFTER TAX (MONTHLY)
NO OF
EMPLOYEES POSITION MONTHLY ANNUAL EE ER EE ER EE ER EE ER EE ER
NEEDED
1 General Manager 24,397.83 292,773.96 581.30 1,178.70 335.47 335.47 100.00 100.00 1,016.77 1,614.17 12,201.24 19,370.04 280,572.72 7,643.18 272,929.54 22,744.13
1 Financial Head 24,573.00 294,876.00 581.30 1,178.70 337.88 337.88 100.00 100.00 1,019.18 1,616.58 12,230.15 19,398.95 282,645.86 8,161.46 274,484.39 22,873.70
Operation/Production
1 Head (Quality Control 15,650.17 187,802.04 563.20 1,141.80 215.19 215.19 100.00 100.00 878.39 1,456.99 10,540.68 17,483.88 177,261.36 0.00 177,261.36 14,771.78
Inspector)
1 Marketing Head 23,513.00 282,156.00 581.30 1,178.70 323.30 323.30 100.00 100.00 1,004.60 1,602.00 12,055.25 19,224.05 270,100.76 5,025.19 265,075.57 22,089.63
1 Delivery Driver 11,984.00 143,808.00 436.00 884.00 164.78 164.78 100.00 100.00 700.78 1,148.78 8,409.36 13,785.36 135,398.64 0.00 135,398.64 11,283.22
Grower/Worker 12,000.00 144,000.00 436.00 884.00 165.00 165.00 100.00 100.00 701.00 1,149.00 8,412.00 13,788.00 135,588.00 0.00 135,588.00 11,299.00
3 Grower/Worker 12,000.00 144,000.00 436.00 884.00 165.00 165.00 100.00 100.00 701.00 1,149.00 8,412.00 13,788.00 135,588.00 0.00 135,588.00 11,299.00
Grower/Worker 12,000.00 144,000.00 436.00 884.00 165.00 165.00 100.00 100.00 701.00 1,149.00 8,412.00 13,788.00 135,588.00 0.00 135,588.00 11,299.00
1 Security Officer 20,000.00 240,000.00 581.30 1,178.70 275.00 275.00 100.00 100.00 956.30 1,553.70 11,475.60 18,644.40 228,524.40 0.00 228,524.40 19,043.70
TOTAL 9 156,118.00 1,873,416.00 4,632.40 9,392.60 2,146.62 2,146.62 900.00 900.00 7,679.02 12,439.22 92,148.27 149,270.67 ########## 20,829.83 1,760,437.90 146,703.16
This includes the position of the employees, basic monthly salary, basic annual salary,
total annual salary, the necessary monthly deductions such as SSS, Philhealth, Pag-
IBIG contributions and their respective annual contributions, 13th month pay and
computed withholding taxes.
The monthly Phil Health premium contributions shall be at the rate of 2.75% computed
straight based on the monthly basic salary, with a salary floor of P10,000 and a ceiling of
P40,000, to be equally shared by the employees and employer.
The monthly contributions are based on the compensation of members. The current SSS
contribution rate is 11% of the monthly salary credit not exceeding P16, 000 and this is
being shared by the employer (7.37%) and the employee (3.63%).
Those earning an annual salary of P250, 000 or below will no longer pay income tax.
Technical Aspect
Product properties
The Metro Mushroom Growers Corp. primarily offers local fresh white oyster mushroom.
The brand name of the product is Bunchshrooms which is a combined name of bunch and
mushrooms. “Bunch” which means a group of things that are held together and “shrooms” for
mushrooms.
White oyster mushroom (Pluerotus florida) is an edible mushroom having a cap, which
resembles an oyster shell. Considered as vegetable, and it is now known that mushrooms
presently rank above all vegetable and legumes (except soybean) and it is commonly eaten by
Asian nationalities. Normally, it is served in soups, stuffed, or stir-fries recipes with soy sauce. It
can also be made into products such as noodles, empanada, tempura, siomai and shingaling.
They are often considered to provide a fair substitute for meat; with at least a comparable
nutritional value to many vegetables the consumption of mushroom can make a valuable
addition to the often unbalanced diet of people in developing countries. It is also best when
harvested young, as the mushrooms aged the bodies becomes unpleasant.
White oyster mushroom has nutritional value such as protein 2 to 5% of their fresh
weight 19.35% of dry weight, amino acids that contains 9 essential amino acids for body health,
Vitamins B-complex, pro-vitamin D2 and vitamin C, mineral 56-70% of ash content, Fiber 7.4-
27.6%, Nucleic Acid 4.0% -from fresh only and even folic acid. It has anti-bacterial and good
anti-oxidant properties which fights diseases and boost the immune system. Likewise, it is low in
calories and fat-free.
The Metro Mushroom Growers Corp. will offer Bunchshrooms white oyster mushroom
which are right after from harvest will be packed per 80 grams weight in accurate packaging that
will keep its freshness- Styrofoam tray with stretchable film plastic and bind per dozen. The
Metro Mushroom Growers Corp. will assure that the products will be distributed in expected
quality and measurement. The firm’s structure will have proper placement of every station of
production and has standard separate mushroom growing area that will be guaranteed the
mushrooms are free from contaminants. Corporation will be providing fixed number of produced
mushroom that will sustain its customers. The company will distribute its products along areas
near to its location. This will make sure the product will arrive on time to its distribution channel.
Manufacturing Process
The basic material in grains spawn is sorghum and or any cereal seeds. Wash grains
thoroughly and discard all floated seeds. Boil for at least 20-25 minutes. Collect seeds using
strainer to drain the water and spread out on newspaper or Manila paper to absorb excess
water. Transfer the boiled grains in round bottle plug with cotton waste and cover with clean
paper. Sterilize the bottled grains at 15 psi for one hour. Cool down. When cooled, pure culture
stubs of chosen mushroom specie will be inoculated in the sterilized bottled grains. Incubate for
14 days. This serves as grain spawn. Use the grain spawn to inoculate sterilized fruiting bags.
Filling the bags, use plastic bags of 6x12 inches polypropylene plastic (PP) bags size 0.2 or 0.3
mm. fill 1 kg of fermented substrate materials in the pp bags and then compress. Then put PVC
pipe neck (1 inch diameter) plug with cotton waste, cover with clean paper or plastic cap to
minimize entry of water during steaming or pasteurization.
Pasteurization or steaming
Inoculate each bag with the grain spawn bottle to loosen the grains, remove the plug and flame
the mouth of the bottle and pour some grains into the bags. Slightly shake the neck area of
newly inoculated bags to distribute evenly the grains in the shoulder area of the bags.
Incubation
Keep the spawned bags in a dry and ventilated room for at least 30-45 days. If within five days
of incubation and no growth appears, the spawn is dead or the substrate is too dry. The bag
could be contaminated with other microorganisms. Mycelium will fill the bags in 20-30 days,
which means the bags are ready to fruit initiation. Open the bags 1-2 weeks after the bag is
totally covered with mycelium. This is to make sure that the mycelium is matured enough to fruit.
Inoculated bags could be pile and incubate directly in a growing house provided the house will
remain dry to obtain the required incubation time.
Fruiting requires a temperature not more than 28’c, ventilation, light, and relative humidity (80-
85%). Provide moisture by watering the mushroom house daily. Do not water directly on bags
opening. To lower the temperature and hasten fruiting, spray the house frequently if the
temperature is more than 28’c provide air ventilation at lower and upper part of walls but
secured with insect net to prevent entry of insects.
INCUBATION PERIOD
Type of Mushroom Incubation Time Mushroom Production Time
(Weeks) Flushes (weeks)
1st 5
2nd 8
White Oyster 4 3rd 11
Mushroom 4th 14
5th 17
The Metro Mushroom Growers Corporation replaces the raw materials for production of
white oyster mushroom three every four months which is (3) times a year.
Machinery
The Metro Mushroom Growers Corp. used only two machines, the autoclave and the inoculation
chamber. The autoclave is used for sterilizing the fruiting bags for 1 and ½ hours for the
purpose of getting rid of any microorganisms or their spores. The inoculation chamber on the
other hand is used for transferring tissues and other tissues culture work and will be used as a
dry-box and by dust proof bacteria free clean uncontaminated environmental enclosure.
The Corporation has its own maintenance for the machines to function properly. The
maintenance checks it three (3) times a year. The corporation have warrantee of bought
machine for 3 years according to the suppliers. The machine we bought from that company is
reliable because it’s a well-known market place and has a good review from their buyers.
The Metro Mushroom Growers Corp staff inquired personally to the machine’s company to
ensure that the machine is on good quality for the purpose of not contaminating the process of
making a mushroom. The payment method that the Corporation used to buy machines is cash
on hand.
Raw materials for 3000 fruiting bags of white oyster mushroom
Site Description
The plant location shall be located at Katipunan Ave. Extension, Brgy. Nagkaisang Nayon
Novaliches Quezon City, Metro Manila. The rental amount of the said lot and are is worth fifteen
thousand pesos (P15, 000) per month. The proponents chose the location because they
observed that there are many potential buyers in the area. Aside from that, markets are near in
the production of the business.
Vicinity Map
Plant layout
The plant size of Metro Mushrooms Growers is approximately 200 square meters and is divided
into eleven (11) facility rooms. The plant layout is ideally designed to provide suitable
environmental conditions for mushrooms.
Front Layout
Waste disposal
The waste of Metro Mushroom Growers will be minimal as they use trash bins inside their
offices. They also use different trash bags in the production area for segregation. Since the
plant location is near in the village, garbage collectors are expected to collect wastes three (3)
times a week.
Process of registering the Metro Mushroom Growers Corporation
1. Undergo in-depth hands-on mushroom training in BPI (Bureau of Plant Industry) and
DA-RFO’s (Department of Agriculture)
Registering in DTI (Department of Trade and Industry)
Product development training in DTI
2. Reserve and register business name in SEC (Security and Exchange Commission)
Visit SEC website or make a personal appearance at their office in Mandaluyong.
Complete and sign all required documents: Articles of Incorporation, By-Laws, Treasurer
Q’s Affidavit, Joint Affidavit of Two Incorporators. All documents need to be notarized
(more on this below).
3. Acquire Barangay Clearance
Visit the Barangay where your business is located and request for clearance.
Submit the following together with your Barangay clearance: Certificate of Business
Registration from SEC, Two (2) Valid IDs, Proof of Address (Contract of Lease or
Certificate of Land Title)
4. Acquire Business Permit from Mayor’s Office
Visit the municipal office where your business is located and request for a business
permit form.
Submit the following together with your completed Business Permit: Certificate of
Business Registration from SEC, Two (2) Valid IDs, Proof of Address (Contract of Lease
or Certificate of Land Title), Barangay Clearance.
The incorporation process is lodged with the Securities & Exchange Commission (SEC).
Anent the documents, the following information must be supplied to adequately fill out the
necessary documents for submission with the SEC:
1. Corporate Name (The last part must end with Inc., Incorporated, Corporation or Corp.)
2. Purpose of the Corporation
3. Address of the Corporation
4. Telephone Number
5. Value of each share (This is usually P100.00 for 1 share)
6. Authorized capital (Total number of shares of the Corporation)
7. Subscribed capital (Number of shares to be subscribed by the incorporators. This cannot
be less than 25% of the authorized capital)
8. Paid-up capital (Number of shares paid by the incorporators. This cannot be less than
25% of the paid-up capital)
9. Name and Branch of Bank where the paid-up capital amount will be deposited
10. Incorporators (Name, nationality, address, birthday, Tax Identification Number,
Community Tax Certificate Number or Passport Number)
11. Shares of the Incorporators (number of subscribed shares, number of shares paid and
percentage of ownership)
12. Number of Directors and their names (Must be an incorporator. Not less than 5 and not
more than 15 directors)
13. Name of the Chairman of the Board
14. Name of President
15. Name of Corporate Secretary
16. Name of Treasurer
17. Term of the Corporation
18. Date of annual meeting of the corporation
19. Accounting Year (Calendar Year or Fiscal Year. Calendar Year is recommended since
this is used by most government agencies)
MARKETING ASPECT
This part will discuss the different marketing aspects of the proposed mushroom
business to identify the suitable strategies that will make it effective in the future.
The project team conducted a careful research and survey for the demand and supply of
the products, competition comparison regarding business competencies, marketing programs
and promotion of products in the target market, suitable location for the business and place of
distribution, and the pricing strategies for the proposed product of the business. These are
prepared by the team to know the cycle in the industry and acquire important information that
will help the business grow exponentially.
OBJECTIVE
The main objective of this chapter is to identify the ideal marketing strategies and
techniques as regards to pricing and product positioning that will be applied in the
business for it to grow within its scope.
To show the demand and supply of the products in the market based on the
respondents’ answer to the conducted survey.
To forecast the struggle of promoting and distributing the proposed product to be offered
by the business.
To predict the expected sales of the business and;
To determine the strength and weaknesses of the competitors that will be put as a basis
to prosper the business.
DEMAND AND SUPPLY ANALYSIS
Oyster mushroom is recently introduced to all farmers. Thus, these products are not
common to people or in the market. According to our survey to all respondents, they sell their
products in Dry Market. Some are in their respective communities. The Metro Mushroom
Growers Corp. is planning to supply Bunchshrooms in some parts of District 5 in Quezon City
particularly in five (5) Barangays which are the following: Nagkaisang Nayon, Novaliches
Proper, Gulod, Sta. Lucia, and North Fairview.
Based on the initial information gathered on the official website of Philippine Statistics
Authority (PSA), the population is estimated 198,725 people in five Barangay, District 5, Quezon
City. This will be very useful in analyzing data through its illustrative computations and tables
that are understandable to everyone.
Table 1
HISTORICAL DEMAND
%
Population Population Population Population Total who
Year Population of of of Gulod of Sta. of North Population wants Demand
NagkaisangNayon Novaliches Lucia Fairview to
Proper avail
14089 49114 23572 37928 169906
2013 45203 67.8 115196.27
Source: psa.gov.ph
Growth rate: 1.04%
The projected values is determined using arithmetic and straight line method
Where:
Yc= Projected Demand
A = annual increase
Yi-1 = Value of the current year
Table 3
HISTORICAL SUPPLY
Year Total Supply
2013 37,978
2014 38,377
2015 38,780
2016 39188
2017 39,600
Source: Based on the survey questionnaire, customers preferred an average of22 kilos, 34% of
the number of respondents was preferred20 above kilos which means they bought estimated
39,600 kilos per annum of each barangay (22x5x30x12), with an annual growth rate of 1.04%
this growth rate is based on the population’s growth per year percentage.
Year A Yi - 1 Yc
2018 406 39,600 40,006
2019 406 40,006 40,412
2020 406 40,412 40,818
2021 406 40,818 41,224
2022 406 41,224 41,630
Where:
Yc= Projected Supply
A = annual increase
Yi-1 = Value of the current year
Table 5
The computation of projected unsatisfied demand is the difference of projected demand and
supply
Table 6
The table above shows the competitors market share for the next 5 years.
Table 7
The projected number of market share of Metro Mushroom Growers is based from the
unsatisfied demand (113,525) multiply by the percentage of the competitor share (26.06%) in
order to get the market share of metro spore growers (29,585) for 2018.
Table 8
SELECTED BARANGAY
Slovin’s Formula
𝑁
n≥ Where:
1+𝑁𝑒 2
N = population (198,725)
n≥ n = sample
1+( )(0.05)2
n≥
n≥
n ≥ 384 Respondents
A survey was once performed and used in figuring out the desired and wants of
the target market regarding the product. Questionnaires were distributed to determine
the measure of responses. Data were presented in table form to show the behavioral or
the respondents about their perspective in the services.
Demographic Profile of the respondents
Table 9
Age of the Respondents
53 and above 23 6%
The results shows that majority of the respondents consisting of 25% (96) are 25-31
years old, followed by 39-45 years old which is 23% (88), 32-38 years old which is 20%
(77), 18-24 years old which is 18% (69), 46-52 years old which is 8% (31), and 53 and
above which is composed of 6% (23) of the total number of respondents.
Table 10
Results show that 58% (223) of the respondents are female and 42% (161) are male.
Table 11
Civil Status of the respondents
Widowed 15 4%
Separated 19 5%
Results shows that majority of the respondents consisting of 63% (242) are Married,
followed by the Single which is 28% (108), Separated which is 5% (19), and the
Widowed which is composed of 4% (15) of the total number of respondents.
Table 12
Number of respondents who are interested to buy mushrooms
Number of Percentage
Respondents
NO 138 34%
Results shows that 64% (246) of the respondents was interested to buy the mushrooms and
34% (138) of the respondents do not interested to buy mushrooms.
Table 13
Number of respondents who buy the following mushrooms
Number of Percentage
Type of Mushrooms Respondents
Results shows that 30% (115) buy Oyster Mushroom, 22% (84) buy Shiitake Mushroom, 18%
(69) buy Pearl Mushroom, 6% (24) buy Wood Ear Mushroom, and 24% (92) buy Buttom
Mushroom.
Table 14
Kilos of mushrooms respondents would buy
Number of Percentage
Kilos of Mushrooms Respondents
1 - 10 Kilos 58 15%
11 - 15 Kilos 88 23%
Results show that 130 of the respondents or 34% chose 20 kilos and above as their desired
kilos and 16-20 kilos has been chosen by 108 respondents or 28% and 11-15 kilos chosen by
88 respondents or 23% and 58 of the respondents or 15% chose 1-10 kilos of mushrooms.
Domestic Transportation Cost
Unit Cost
Expenses Sources Consumption Total (Php)
(Php)
Gasoline Shell/Petron/Caltex 42/liter 600 liters 25,200
Oil and DEECO Hardware
500/month 12 mos. 6,000
Lubricants Supply
Total 31,200
Estimated Production
Mushroom Production Number of oyster Total Weights Total
Flushes Time produces (grams) number of per Number
(weeks) Multiply to 1000 Oyster Package Of Package
Fruity bags Mushrooms (grams) Per Flushes
(grams)
1st 5 120x3000 360,000g 80 4,500
2nd 8 120x3000 360,000g 80 4,500
3rd 11 120x3000 360,000g 80 4,500
4th 14 120x3000 360,000g 80 4,500
5th 17 120x3000 360,000g 80 4,500
Year Total Number Number of Total number Weights per Total number
oyster Package
of fruiting bags of Oyster of package
produces per (grams)
fruity bags Mushrooms
(grams)
Produce
(grams)
2019 3000 1800g 5,400,000g 80 67,500
2020 4000 1800g 7,200,000g 80 90,000
2021 5000 1800g 9,000,000g 80 112,500
Competitors Background
1. Product
There are other mushroom growers and sellers who offer varieties such as
white/gray/pink and brown oyster mushrooms, ganoderma lucidum, and milky mushroom
Category A: the mushrooms included in this category in good size and color. Mostly the
oyster mushrooms with light brown color are included in this category and the size of the
flower is 5-7 inches.
Category B: the mushrooms included in this category are smaller in size than the A
category mushrooms. But some full size mushrooms were also included in this category
due to their color. The color of such mushrooms didn’t match the A category requirement
and thus they are included in this category
2. Price
They tried to capture higher market share so they set their prices at a level that
are affordable by their customers. As the price of canned mushroom is very high, so to
capture market, they reduce their price. Canned mushrooms are available in market with
huge prices depending upon the quality. So they set the prices according to their product
categories.
Competitors cater the high land vegetable retailers in local public market, restaurants
who serve mushroom dishes, grocery stores in malls, and some businesses who
process products that needed or made of mushroom. Most competitors are located in
provinces like Pampanga, Bulacan, Ilocos, and Laguna and some from Metro Manila.
Balintawak public market is where the competitors mainly place products.
4. Promotion
Competitive Comparison
Product/Services The Company offers Oyster mushroom and Spawn of oyster mushroom.
Price Their Bottle ranges from 100.00 to 500.00 pesos it depends on classes.
Promotion They conduct trainings and seminars to have a knowledge for mushroom
farming guide linked through social media like Facebook etc.
Metro Mushroom Growers Corporation
The business will give importance to their target markets especially their customers by
supplying good quality of products. Customers can talk to the staff especially if there are
problems arise in providing the products. The management shall address the problems right
away. The management must maintain good customer service in entertaining their requests and
concerns.
Distribution Channels
Nagkaisang
District 5 Fairview Novaliches Sta. Lucia Gulod
Nayon
Pricing Strategy
The current selling price of fresh white oyster mushrooms in the market ranges from
P150 to P400 depending on their sizes, weights and sources of supply. Metro Mushroom
Growers provides a single class of size which is packed in 80 grams of weight. The
management decides to provide a 1% increase in price annually.
Strategic Location
The proposed project shall be placed in a good location wherein it is accessible to the
raw materials needed for oyster mushroom production. Moreover, the strategic location
of the company is very accessible to any means of transportation. The place is also
good for oyster mushrooms to grow because it is free from any possible contaminants
that might affect the growth of the oyster mushrooms. The place is surrounded with trees
that give cooling environment.
Promotional Strategies
With the supervision of marketing head, the promotional strategies will be prepared. To
promote the Metro Mushroom Corp.’s Bunchshrooms, the following practices will be
used:
CONSIGNMENT CONTRACT
This Consignment Agreement (the “Agreement”) states the terms and conditions that govern the
contractual agreement between METRO MUSHROOM GROWERS Corp., (the “Consignor”) who agree to
be bound by this Agreement.
WHEREAS, the Consignor owns right and title to the items described on Exhibit A attached hereto (the
“Consigned Items”), and the Consignee desires to take possession of the Consigned Items with the
intention of selling it to a third party.
NOW, THEREFORE, in consideration of the mutual covenants and promises made by the parties hereto,
the Consignor and the Consignee (individually, each a “Party” and collectively, the “Parties”) covenant
and agree as follows:
RIGHT TO SELL. The Consignor hereby grants to the Consignee the exclusive right to display and sell
the Consigned Items according to the terms and conditions of this Agreement.
MINIMUM PRICE. The minimum price at which the Consignee may sell the Consigned Items shall be ₱
______ (the “Minimum Price”). In the event the Consignee sells the Consigned Items for less than the
Minimum Price, the Consignor shall be entitled to the same payment the Consignor would receive as its
share of the sale price under this Agreement had the Consigned Items been sold for the Minimum
Amount.
INSURANCE. The Consignee represents and warrants that the Consignee shall maintain insurance
coverage sufficient to compensate the Consignor for the fair market value of the Consigned Items in the
event of damage due to fire, theft, or otherwise.
LOCATION OF ITEMS. The Consignee agrees and acknowledges that the Consigned Items shall only be
kept and stored at the Mushroom Warehouse unless otherwise agreed upon by the Consignor in writing.
EXPENSES. The Consignee shall bear all expenses for shipping the Consigned Items.
IN WITNESS WHEREOF, each of the Parties has executed this Contract, both Parties by its duly
authorized officer, as of the day and year set forth below.
_________________________________ ______________
[NAME] DATE
[CONSIGNEE]
_________________________________ ______________
[NAME] DATE
Target Clients
All staff and personnel will always be oriented the proper protocol of taking care our customers.
The personnel are expected to be friendly, approachable, hardworking and courteous in
entertaining the target customers even with their co-workers.
Process
The Metro Mushroom Growers Corp. will always consider the quality control for an efficient and
effective process in producing oyster mushrooms. The management shall ask assistance in
Department of Science and Technology to ensure the desired outcome of the processes. Also,
quality control in production area must be observed.
Packaging
A good packaging for the products will be used at the same time to ensure the best quality of
the products. The management shall ask advices from Department of Science and technology
on what would be the best packaging design to ensure the quality, cleanliness and freshness of
the product.