Chapter 1

INTRODUCTION

Watermelons (Citrullus lanatus) obviously gets its name because of its extremely

high water content, approximately 92 percent. Besides water, it is full of nutrients; 1 cup

of diced, fresh watermelon provides 21percent of the daily value (DV) for vitamin C, 18

percent of the VD for vitamin A, and significant levels of vitamin B6, lycopene,

antioxidants, and amino acids. Watermelon consumption and production in the United

States has been on the rise in the last few decades. U.S. annual per capita consumption of

watermelon is now at approximately 16.1 pounds per person in 2017 (UC Vegetable

Research and Information Center, 2009).

Watermelon, commonly known as “pakwan” in Tagalog, is probably native to

Africa. It is mainly eaten as dessert fruit. The rind is made into preserves and pickles; the

seeds are processed into butong pakwan.Watermelon (Citrullus lanatus) is a member of

the cucurbit family (Cucurbitaceae). Plants must be grown at a wide spacing because of

their long, trailing vines. Management of plant pests (weeds, insects, and diseases,

including nematodes) is essential during the production period. Three-fourths of the world

production is grown in Asia, with China the leading country in production.

Watermelons are grown in most states of the United States, but the major

producers are in the South and West (Florida, Georgia, California, and Texas) where

the warm production season lasts longer. The fruit are harvested by hand, with the

most experienced workers doing the cutting (removal of the fruit from the vine) and

the others loading the bins or trucks. The fruit are shipped to markets throughout the

United States, with some exported to Canada.

Watermelon fruit will keep for two to three weeks after harvest if they are stored

properly at 10 to 15°C and 90% humidity. Besides whole watermelons, it is becoming

popular to sell watermelon in pre-cut halves, quarters, slices, and chunks. Whole fruit

usually are cut in the store under cold, aseptic conditions since the cut product does not

ship or store well. Seedless watermelons are especially popular for pre-cut sales, since that

shows their seedless quality. Depending on the cultivar, watermelon fruit are produced in

different sizes:2 ice box, small, medium, large, or giant; different shapes: round, oval,

blocky, or elongate; different rind patterns: gray, narrow stripe, medium stripe, wide

stripe, light solid, or dark solid; different flesh colours: white, yellow, orange, or red; and

different types: seeded or seedless. Commercially, the most popular seeded cultivars are

red flesh, blocky shape, and large sized (8–11 kg), like the cultivar Allsweet. For seedless

watermelons, the popular cultivars are red flesh, oval shape, and medium sized (5–8 kg).

Per capita consumption of watermelons in the United States is 7.2 kg.

Watermelon is served fresh as slices, as chunks. It is no longer just a summer fruit

and is becoming an everyday fruit like apples, bananas, and oranges. The watermelon fruit

is 93% water, with small amounts of protein, fat, minerals, and vitamins. In some arid

regions, watermelon is used as a valuable source of water. The major nutritional

components of the fruit are carbohydrates (6.4 g/100 g), vitamin A (590 IU), and lycopene

(4,100 µg/100g, range 2,300–7,200), an anticarcinogenic compound found in red flesh

watermelon.

Lycopene may help reduce the risk of certain cancers, such as prostate, pancreas,

and stomach. The lycopene content of the new dark red watermelon cultivars is higher

than in tomato, pink grapefruit, or guava. Orange flesh types have only small amounts of

lycopene, and the beta carotene content is similar to that of red flesh types. Watermelon

seeds are rich in fat and protein.

Watermelon flowering and fruit development are promoted by high light intensity

and high temperature. Watermelon growth habit is a trailing vine. The stems are highly
branched and up to 30 feet long, although there are dwarf types (dw-1 and dw-2 genes)

with shorter, less-branched stems. Roots are extensive but shallow, with a taproot and

many lateral roots. Watermelon has small flowers that are less showy than those of other

cucurbits. Flowering begins 4 to 8 weeks after seeding

(https://link.spinger.com/chapter/10.1007%2F978-0-387-30443-4_12).

Here's a list of some more common watermelon varieties

 Sugar Baby - matures in 75 days, very sweet melons weighing 9 pounds, red flesh,

short vining plants, good for limited space

 Moon and Stars - matures in 95 days, dark green skin with yellow spots

resembling moon and stars in the night sky, sweet melons reach 40 pounds, pink

to red flesh

 Black Diamond - matures in 90 days, very round melon weighs up to 75 pounds,

vibrant red flesh, good all-around watermelon

 Yellow Crimson - matures in 80 days, round melons reach 20 pounds, bright

yellow flesh with black seeds, sweet taste

 Orange Tendersweet - matures in 85 days, bright orange flesh with white seeds,

sweet and tender, melons reach 25 pounds

 Orangeglo - matures in 90 days, very sweet and crisp, oval-shaped melons

average 40 pounds, bright orange flesh with off-white seeds

 Kleckley's Sweet - matures in 85 days, extra crisp and sweet, thin rind, red flesh

with white seeds, 40 pound melons, heirloom variety

 Big Crimson - matures in 90 days, this variety of watermelon produces 30 pound

melons, sweet, red flesh, dark green skin

 Charleston Gray - matures in 85 days, long vigorous vines, light green skin with

sweet red flesh, 30 pounds

 Crimson Sweet - matures in 85 days, this watermelon variety produces 25 pound

melons with sweet red flesh, high sugar content, thin rinds, very disease resistant

 Jubilee - matures in 95 days, 40 pound melons with green stripes and red flesh,

very fine texture, grows well in hot weather

 Louisiana Sweet - matures in 90 days, oblong melons reach 25 pounds, bright red

flesh is crisp and sweet, black seeds

 Ruby Hybrid Seedless - matures in 85 days, oval shaped melons reach 8 pounds,

crisp and super sweet flesh, seedless

 Carolina Cross - matures in 100 days, this watermelon variety produces 200+

pound melons, sweet red flesh, oblong shape

 Georgia Rattlesnake - matures in 90 days, pale green stripes resemble a snake

skin, bright pink flesh, sweet and crisp, reaches 30 pounds, heirloom variety

 Congo - matures in 90 days, round melons reach 35 pounds, green stripes, sweet

red flesh and thick rinds

 Snack Pack - matures in 75 days, 3-4 pound round melons, sweet red flesh,

seedless, solid dark green skin

 Sugarlee - matures in 85 days, 15 pound melons, very sweet red flesh, green

striped rinds, disease resistant (https://www.backyard-vegetablegardening.com

/watermelon-varieties.html).
Importance of the study

The study gives additional information about the watermelon industry. For the

owner of the farm, the result of this study will serves as a guide in evaluating the

performance of the farm. For students, this study will provides the necessary information

about the farm. For future entrepreneurs, who are planning to engage in this kind of

business, this study may serve as a guide or tool to determine the organization, investment,

production, marketing aspects and management operations of a franchising business.

Objectives of the study

Generally, this study will aim to find out the management operations of Ever Ani

Farm.

Specifically, this study will aim to:

1. trace the historical background of the farm

2. determine the organization, investment, production/operation and marketing

aspects of the farm;

3. analyze the financial performance of the farm;

4. identify and analyze the specific problems encountered by the farm; and

5. formulate and recommend alternative solutions to the identified problems.

 Chapter 2

INDUSTRY PROFILE

Growing watermelon requires a lot of labor, as indicated by the higher percentage

of labor costs, which accounts for 26.4% of the total production cost. Laborers are needed

in various planting activities like harrowing, bed making, and plastic mulch installation,

seedling growing and planting, watering, weeding and other activities. As a result,

watermelon growers may want to mechanize their farms. The cost of seeds contributes

around 6% of the total cost of production. Seed cost accounts for a very small portion of

the total production cost but is crucial, so farmers are not encouraged to use poor quality

seeds. Remember, it all starts with the seeds.

The price of produce in the market fluctuates, depending on the supply and other

market forces. Considering a price range of P8-12.00 per kilogram (kg) of fruit, a farmer

may earn a net income from P140,185.00 to P260,185.00 from a hectare of land with a

plant population of 6,000. To earn this amount, a farmer needs just about 3 months.

What would be the key success factors (KSF) needed in order to achieve the full

potential income in growing watermelon? Here are some:

1. Proper selection of seeds. Using hybrid watermelon varieties like Sweet 16, Sweet

18, Sugar Baby Max, and Sugar Ball gives you a better chance that your

watermelon growing business will be a success due to their high yield potential

and excellent field performance.

2. Proper site selection. Watermelon prefers a sandy loam type of soil with a pH of

5.8 – 7.2.

3. Favorable weather. This crop is sensitive to very drastic or sudden changes in

weather. Beware of typhoons.

4. Proper and complete planting inputs. Applying the proper fertilizers and other

inputs in the right amounts and with the proper timing gives farmers the edge in

attaining a better harvest

5. Timing of planting. Because of the availability of strong hybrid varieties,

watermelon can now be grown year-round. That is why farmers need to schedule

their farming in such a way that they are not harvesting during the peak season

(for watermelon, the peak season of harvesting happens in the first quarter of the

year up to the early second quarter) (https://www.agriculture.com.ph/2019/04/28/

watermelon-moneymelon/).

Varieties

Varieties commonly grown in the Philippines are Valencia, Meak,

Klondyke, Northern Hybrid, Tender Sweet, honey Cream and Mallorca.

Watermelon is grown commercially in lowland areas after rice harvest. These

provinces are Bataan, Bulacan, Pampanga, Tarlac, Nueva Ecija, Rizal, Batangas

and Laguna. Months of planting. Planting season is from October to January. In

some parts of the country, planting is done as early as August to produce an off-

season crop which commands better market price. Watermelon is grown in more

than 96 countries worldwide (Produce Pete, 2008). There are about 1200 varieties

of watermelon grown worldwide; giving consumer‟s a wide choice to choose from

(https://ep.franphil.com/watermelon-pakwan-production/).
Supply in Watermelon

Table 1. Volume of Production of Watermelon 2013-2017 (in metric tons)

Region 2013 2014 2015 2016 2017

Philippines 130,005 131,530 148,030 143,880 147,319

Cordillera Administrative Region 372 118 141 140 142

Region I (Ilocos Region) 23,865 24,707 26,936 26,698 26,095

Region II ( Cagayan Valley) 11,539 7,097 7,416 6,993 9,644

Region III (Central Luzon) 7,538 6,767 7,103 6,851 7,307

Region IV-A(CALABARZON) 2,755 2,951 2,950 2,899 2,382

MIMAROPA Region 2,644 2,934 3,192 3,413 3,523

Region V (Bicol Region) 5,421 5,424 5,598 5,756 5,686

Region VI (Western Visayas) 66,494 71,516 83,876 79,961 81,381

Region VII (Central Visayas) 996 1,072 1,167 1,285 1,455

Region VIII (Eastern Visayas) 721 648 700 676 646

Region IX (Zamboanga Peninsula) 532 487 638 866 819

Region X (Northern Mindanao) 1,503 1,890 2,024 2,274 2,258

Region XI (Davao Region) 875 1,096 1,070 1,090 1,177

XII (SOCCSKSARGEN) 1,761 1,982 2,132 2,388 2,299

Region XIII (Caraga) 2,943 2,794 3,010 2,535 2,426

Autonomous Region in

Muslim Mindanao (ARMM) 47 47 80 83 81

Table 1 shows volume of production of watermelon year 2013-2017 (in metric

tons). The higher production in year 2013 until 2017 is Region VI (Western Visayas) and

the lowest production 2013 until 2017 is Autonomous Region in Muslim Mindanao
(ARMM). The highest production of Region VI (Western Visayas) is 83,876 Metric tons

year 2015 and the lowest production of ARMM is 47 metric tons year 2013 and 2014.

According to Philippine Statistic Authority (PSA), the production of watermelon

incurred an average cost of P62,622 per hectare in 2015. At a yield of 20,122 kilograms

per hectare, gross earnings amounted to P237,238 during the year in review.  Per hectare,

returns above cash costs stood at P195,417 and returns over the combined cash and non-

cash costs figured to P194,882.  Net returns settled at P174,616 in 2015.  The cost of

producing per kilogram of watermelon was P3.11. Price received by farmers averaged

P11.79 per kilogram (https://psa.gov.ph/sites/default/files/20132015%20CRS%20of%

20Selected%20Commodities.pdf).

Table 2. Top Watermelon Producing Countries In The World

Rank Country Watermelons produced (tons)
1 China 79,244,271
2 Turkey 3,928,892
3 Iran 3,813,850
4 Brazil 1,090,432
5 Uzbekistan 1,976,373
6 Algeria 1,877,069
7 United States 1,823,160
8 Russia 1,757,972
9 Egypt 1,680,994
10 Mexico 1,199,648
Table 2 shows the top watermelon producing countries in the world. China is by

far the world's largest producer of watermelon for a total of 79,244,271 metric tons ,

followed by Turkey and Iran and the top 10 largest producer of watermelon is Mexico for

a total of 1,199,548 metric ton (https://www.worldatlas.com/articles/top-watermelon-

producing-countries-in-the-world.html).
Demand in Watermelon

Table 3.Per capita consumption of fresh watermelons in the United States

Year Per Capita Consumption (in pounds)

2010 15.70

2011 13.82

2012 13.88

2013 14.47

2014 13.89

2015 14.85

2016 16.46

2017 16.09

In United States the consumption per capita in pounds year 2010-2017 is around

13 pounds to 16 pounds per annual (https://www.statista.com/statistics/257222/per-

capita-consumption-of-fresh-watermelons-in-the-us/).

Statistics show the fruit is a produce department of winner. Summer is just about

here, and few produce items are more synonymous with warm weather than watermelons.

Of those who purchased watermelons, 96% said they made a purchase during the summer,

according to the national watermelon promotion board in Lakeland, Fla.

Spring was the second most popular season with 49%, followed by 24% in the fall

and 12% in the winter (http://digitaledition.qwinc.com/publication/?i=308645&article

_id=2503607&view=article).
Prospects in Industry

According to the USDA Economic Research Service, over 113,000 acres of

watermelons were grown in the US in 2017, producing 40.01 million pounds. While

watermelons are grown across the U.S., most production occurs in the top four states

(Texas, Florida, Georgia and California), producing approximately 69 percent of all

grown in the U.S. The average watermelon yield per acre in the U.S in 2014 was 31,800

pounds. In terms of production, watermelon is one of the three top crops produced in the

US.

Watermelon production expected continue to produce and increase in farming

watermelon because of high demand especially in United States. Seedless varieties are in

increasing demand, and the share of seedless watermelon in total watermelon shipments

in the United States increased from 51 percent in 2003 to nearly 85 percent in

2014. Seedless varieties, typically started as transplants rather than from direct seeding,

require more intensive management, with the cost differences generally visible at the retail

level. U.S. Cash receipts for watermelons was $578.8 million in 2016 (https://www.

agmrc.org/commodities-products/vegetables/watermelon).
 Chapter 3

METHODOLOGY

Time and Place of the Study

The study will be conducted at Ever Ani Farm, Located at San Nicolas Balas,

Concepcion, Tarlac during the school year 2019-2020 ending in May 2020.

Sources of Data

Primary data will be gathered through series of personal interviews with the owner

and other staff of the farm, who will also contributed in collecting the files and information

needed, specifically, the data that will be gathered were from the areas of (a) organization

which consist of firm’s organizational chart, duties and responsibilities, human resource

management and compensation and benefits; (b) investment which consists of the starting

capital and its utilization; (c) production and operation which consists of the volume and

cost of service inputs and technology; (d) marketing which consists of the 7c’s and; (e)

finance which consists of income statement and balance sheet.

Secondary data will be gathered from current data available at PSAU Library and

other reading materials like journals and from the internet.

Method of Analysis

All data will be utilized in evaluation and analyzing the management of the farm using

the case method analysis. Actual observation will also be conducted in identifying

problems that the farm encountered and will formulate and recommend alternative

solutions and will recommendations to improve the operation of the farm. The

productivity and financial performance of the business will be evaluate using appropriate

financial and profitability ratios.