FEASIBILITY STUDY RESULTS 1.0 1.

1 TECHNICAL AND PRODUCTION STUDY Project Site Location and Biophysical Characteristics

The proposed project site is the Municipality of Carranglan, Nueva Ecija (Figure 1). It is located at the mainstream range of Carraballo Mountain, northeast of San Jose City. It has a total area of 30,806.66 hectares covered by Agrarian Reform Community of which Barangay Puncan has 5,271.6949 hectares, Dig-dig8,015.0630 hectares, R. A. Padilla5,2560726 hectares, Putlan3,574.00 hectares, Minuli2,212.83 hectares and Capintalan6,477 hectares. Out of the total land area of the six municipalities along Maharlika Highway, 2,483.032 hectares or 8.06 percent is devoted to agricultural production. About 28,323.66 or 92.0 percent of the land area is unclassified forest or grassland. The coming in of the Community Based Forest Management (CBFM) program in the area significantly increased forest plantation, thus protecting the hill sides from severe degradation due to erosion. Rivers and waterways are threatened to dry-up during summer and silted during rainy season. Conservation of water resources is very important for sustainable development in the future. The six barangays covered by CASCADE are accessible to all types of land transportation facilities. Puncan and Capintalan are 17 km and 48 km from San Jose City. Their main agricultural products are rice, vegetable and root crops. Secondary sources of income are sawali, basket and broom making from the forest products of bamboo, rattan and tiger grass. Sampaguita and ilang-ilang production are best alternative sources of family income. Most of the areas are rough to very rough with soil type of clay loam with sandy loam type along river flood plains. The soil ph is 6.8 and Nitrogen (N), Phosphorous (P) and Potassium (K) content was low as indicated in the Soil Test Kit (STK) result. Ilang ilang and Sampaguita can thrive well in these areas. 1.2 Sampaguita Production

Sampaguita [Jasmin sambac (Linn.) Ait.], the Philippines national flower, grows in various types of soil in a wide range of climate in the country, except in elevated areas where the temperature is too cold for its growth. It has widely distributed strongly anchored roots that grow in branches that come in contact with soil. This makes it a good forest cover. It is not sensitive to any soil type as long as its is not water logged. Under full exposure to sunlight, and under hot conditions, it bears flowers profusely with adequate fertilizer supply. TECHNICAL AND PRODUCTION STUDY

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TECHNICAL AND PRODUCTION STUDY

Figure 1. Project Location

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Various sampaguita varieties are available (single and double-petals). The double-petal variety is more fragrant but it flowers during the summer months only. The single-petal variety is preferred for propagation because it flowers all year round when well managed. Sampaguita plants can last for more than 50 years with minimal management. An open backyard as small as 30 square meters can accommodate 25 mature plants that can produce as many as 25 liters of flowers a day. An average sale of P2,000 a day during the 4th year (10 months a year) is expected. Commercial harvesting usually starts eight months after transplanting flowering seedlings. 1.2.1 Cultural Management Practices

1.2.1.1 Propagation from Stem Cuttings

Prepare the following materials: semi-mature stems or runners (8-10 inches long) black plastic bags as potting container (2 x 4 inches) sandy garden soil

Plantation Establishment and Harvesting

Prepare the following materials:

sprayer light hoe rake Prepare land prior to transplanting. Well-drained soil with good tilth is essential.

Water the seedlings a day before transplanting.

Apply 1.0 kg of organic fertilizer per plant to increase soil nutrients. To improve soil tilth, this must be properly mixed with ordinary garden soil before planting. Plant at a distance of 1m x 1m and water immediately after transplanting. The best time to plant is during the rainy season. Under Carranglan condition, these can

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be planted as borders of their homelots, or backyard flower garden. In public places, these can serve as ornamental plants in parks.

Water the plant frequently during the early stages of its growth. Cultivate plants regularly and remove weeds.

Apply 50 grams complete fertilizer per plant and 20 grams urea fertilizer per plant three weeks after transplanting and every six months thereafter. Smudge or burn semi-dried leaves to drive away flying insects. Spray fungicides and insecticides only when badly needed. This is to assure good health to users of Sampaguita as air fresheners.

Harvest buds that are ready to open the following day. Preserve buds by packing flowers in ice cooled Styrofoam containers.

Defoliate the shrubs when flower production is low. Ilang-ilang Production Cultural Management Practices

1.3 1.3.1

1.3.1.1 Propagation Ilang-ilang is normally propagated by seeds. The seeds generally have a low germination rate of 70%. Germination is completed in 60-80 days after sowing. To reduce the hibernation days and enhance seed germination, the seeds are soaked in warm water with an initial temperature of 60 0C for 24 hours. Seeds are sown directly in a prepared seedbed consisting of 50% sandy soil and 50% compost. Seedlings are subsequently transferred in polyethylene bags containing the same medium. Upon reaching a height of about 25-30 cm, seedlings are hardened and transplanted to permanent sites. Propagation of ilang-ilang using stem cuttings can also be used, but this technique was found to be successful only when the plant materials are obtained from seedlings only.. Rooting success of shoot explants from 2.5-year-old trees is only about 3.5%. Indolebutyric acid (IBA), an auxin, can be used to enhance root formation in ilangilang cuttings.

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Ilang-ilang can also be sexually propagated by means of cleft grafting. Using scions of 5-6 mm diameter stem, percent take in grafting can be as high as 80% when grafted onto old seedling rootstocks.

1.3.1.2 Field Establishment A suitable plantation site is an area less prone to typhoon because the trees are soft and fragile and thus more liable to breakage. Planting is recommended at the beginning of the rainy season with a spacing of 10-meters between rows and 5 meters between hills in a row.. This planting distance allows cultivation inside the plantation using tractor for fire protection during summer. Aside from volunteer farmers, ilang-ilang seedlings can be planted along the Maharlika High-way from Capintalan to Pungcan and the provincial road from junction to poblacion. This will provide quality and fragrant air to passers by.

Fertilizer requirement

Soil samples were collected in the mountainsides of the barangays of Carranglan along Maharlika Highway from Capintalan down to Pungcan. Analysis of soil samples using Soil Test Kit (STK) revealed low NPK content. However, ph was found to be 5.8 - 6.0 which is best for all tropical crops. Application of 1 kilogram organic fertilizer plus 30 gram of complete fertilizer per seedling at planting will provide good crop establishment.

Pruning

Pruning is done when trees are about 2 2.5 meters high to induce growth of lateral branches and to facilitate harvesting of flowers. The yield of essential oil has been reported to be somewhat higher in flowers of coppiced trees than in tall trees.

Pests

Insect infestation is one of the critical pest problems in ilang-ilang. Among those reported to damage ilang-ilang trees are: grey mealy bug (Ferrisia virgata Ckll), common white mealy bug (Planococus lilacinus Ckll), atlas moth (Attacus altas L.) and leaf miner (Phyllocnostis spp.). These insects attack the young shoots and leaves, leading to stunted growth and leaf shedding and curling.

Harvesting

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The tree bears flowers all year round with peak season in the months of March to May. The volume of flower production during the lean months is only 10 % of the volume produced per day during the peak months of production. The availability of ilang ilang for the operation of the extraction plant during the lean months will be filled by areas planted beyond the minimum level of operation of the plant. The flowers may be harvested for oil extraction when they attain maturity, indicated by a change of color from green to yellow (about 20 days from start of blooming) with brown colored center.. It is at this period when flowers contain the maximum quantity and good quality of essential oil. Collection is done early in the morning to avoid the dissipation of its delicate fragrance, as an effect of heat.

Yield of Fresh Flowers

The yield of fresh flowers of ilang-ilang is estimated at 30,000 to 45,000 pieces per tree per year for trees 5 years old and above. A kilo of fresh ilang-ilang flowers contain about 800 pieces or one matured flower weighs about 1.25 grams. Based on this estimate, the yield of flowers may range from 3856 kg/tree/year. The raw materials (flowers), needed for the extraction process will be purchased from the community at an increasing trend in volume until its production is stabilized on its fifth year. At the onset of the 6th year of operation, additional flowers coming from the municipal ilang-ilang plantation will be utilized for the oil extraction. Immature flowers harvested from the community and the municipal plantation will be utilized for the cut flower project component. This will lower the cost of raw materials since the plantation is LGU-controlled hence the cost of flowers may be lowered. 1.4 1.4.1 Proposed Ilang-ilang and Sampaguita Development Program Ilang-ilang Development Program

Based on literature survey and technical advice from the Department of Science and Technology (DOST), ilang-ilang flowers are one of the best sources of organic essential oil. This has been proven by the experiences of entrepreneurs from other municipalities like in Anao, Tarlac and Ilagan, Isabela. Other provinces followed suit like the LGU of Quirino Province. Hence, it is proposed that ilang-ilang production in Carranglan, Nueva Ecija shall be basically for essential oil production. Ilang-ilang as fresh flowers cannot be transported in ice coolers; it will turn brown when preserved in coolers. The staying power of its color is very short. 1.4.1.1 Potential Area for Ilang-ilang Production TECHNICAL AND PRODUCTION STUDY

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Based on the biophysical characteristics of the area ALYANSA members in particular, and the Municipality of Carranglan, in general, these areas are suited to ilang-ilang production. However, there are competing crops which are equally suited to these said areas. Among these are: corn, mango, coffee and other crops like tiger grass and banana. Besides, there is an on-going LGU-ALYANSA-NESTLE cassava and coffee project in the area. It is recommended therefore that marginal areas can be used for ilang-ilang production. It has to be noted however that some members believed this can be an alternative crop for them. It can be intercropped with tiger grass, and coffee. At present, many of the areas covered by ALYANSA are already planted with mango and forest trees as required by the Community-Based Forest Management (CBFM) program. Others were committed to coffee and cassava production project. Hence, in the short-run, areas available for ilang-ilang production are those areas which were not planted to fruit trees and/or forest trees which are adjacent to the proposed oil extraction plant. Initially (during the consultation meeting with ALYANSA officers and members held September 16, 2002), an area of at least six hectares near the targeted location of the oil extraction plant was pledged for ilang-ilang production. The said area is the minimum area required to supply the input requirement of a 100-kg capacity oil extraction machine at full capacity. In addition, national, provincial, and municipal roads are potential areas for ilang-ilang production. 1.4.1.2 Implementing Strategy

In ilang-ilang flowers production, a two-pronged approach is recommended. One, an area of at least 6 hectares shall be planted by the ALYANSA members with ilang-ilang trees. With an average production of 20 kg/tree/yr (or 4,075 kg/ha/yr) of ilang-ilang flowers, the above stated area will be enough to provide the input requirement at full-capacity of a 100-kg capacity oil extractor machine on the 8th year from year of planting. Since ilang-ilang trees start bearing flowers on the third year from year of planting, oil extraction can commence on the third year. An ilang-ilang oil extraction plant shall be located beneath the Municipal Building (Annex).

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The period from 3rd year to the 4th year shall be considered a learning period for the ALYANSA. On the 8th year, ALYANSA can opt for an additional 100-kg capacity or a 200-kg capacity oil extractor machine. The detailed technical assumptions on ilang-ilang production and oil extraction are shown in Tables 1- 5.

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TABLE 1. TECHNICAL ASSUMPTIONS (ILANG-ILANG) TECHNICAL ASSUMPTIONS 1 Working days in a year 22 2 1 Number of oil extraction batches per year Hours requirement for oil extraction 10 3 Production of essential oil 1 Production/100 kg fresh flower Price per liter essential oil 10,000 4 Fresh flowers requirement per year Capacity of oil extractor 100 5 Area required per 100 kg/batch oil extractor (ha) 5 x 10 Planting distance (m) 50 2 ( Number of trees per hectare 10,000 m /ha) 200 Ave. production per year (kgs) Per tree 20 Per hectare 4,075 6 Cost of seedlings per hectare (P) Total number of seedlings per hectare (pcs) 200 10% Mortality (number) 20 Price of seedling (P) 15 7 Labor for plantation establishment per hectare (P) Land clearing/preparation (P) 6,000 Planting / replanting 1,000 8 Labor for care & maintenance (P/ha/yr) 2 Land clearing times per year 15 1 3 Fertilizer application time per year 2 3 Pruning times per year Wage per day of hired labor 100 9 Labor cost (harvesting) 10 Utilities 1 10 Fuel wood Per kg kg/batch 10 Electricity Water 15 Light 300 1 11 Amber bottles liter capacity 50 Pesos/bottle 50 12 Direct labor Wages - Machine Operator 150 Wages-Helper/Laborer 100 13 Oil extraction supplies 25 14 Miscellaneous (oil extraction) 50 15 Salary - Business Manager 320 16 Office Supplies 50 17 Marketing expenses 500 18 Repairs & maintenance (starting on 3rd yr) 3% of purchase cost Building 10,000 10% of purchase cost Extractor machine 30,000 10% of purchase cost Water system 3,000 19 Facilities and machine installation and purchase Extractor machine,purchase year Year 2 Year2 Construction of building Year 2 Loan availment Year 3 20 Charging of depreciation cost 21 Terms and condition of payment of loan Alyansa Level 20% per annum Interest on loan 500,000 2 Period of payment Years x Time of payment End of year payment Farm Level 20% per annum Interest on loan 20,000 2 Period of payment Years x Time of payment End of year payment 22 Other expenses 100

working days /mo batch per day hrs per batch liter per batch Pesos/liter

264 days 264 batches/year

26,400 kgs per batch m2 trees/ha kgs/tree kgs/ha trees/ha trees/ha P/pc P/ha P/ha mandays/ha mandays/ha mandays/ha Pesos per day 6

kgs per year ha

P/ha 3,300 P/ha 3,000 P/ha 300 7,000 P/ha

3,900 P/ha/yr 3,000 300 600 3 P/kg

Pesos/batch Pesos/batch Pesos/month Pesos/liter Pesos/batch Pesos/batch Pesos/batch Pesos/batch Pesos/batch Pesos/batch Pesos/batch Pesos/yr Pesos/yr Pesos/yr

loan

100,000 Pesos int /yr

loan

4,000 Pesos int /yr

Pesos/batch

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TABLE 2. SUPPLIES AND MATERIALS (ILANG-ILANG PRODUCTION) ITEM QTY/TREE/YR Year 1 Ilang-ilang seedlings Fertilizer Chicken dung (every other year) Kg/tree/year = 1.00 Ammophos (16-20-0) Kg/tree/year = 0.03 Fungicide Insecticide Bamboo stakes Sub-total Year 2 : Replanting material % of total trees: 10% Fertilizer Ammophos (16-20-0) Kg/tree/year = 0.1 Fungicide Insecticide Sub-total Year 3 Fertilizer Chicken dung (every other year) Kg/tree/year = 2.00 Ammophos (16-20-0) Kg/tree/year = 0.1 Fungicide Insecticide Sub-total Year 4 Fertilizer Ammophos (16-20-0) Kg/tree/year = 0.1 Fungicide Insecticide Sub-total Year 5 onwards Fertilizer Chicken dung (every other year) Kg/tree/year = 3.00 Ammophos (16-20-0) Kg/tree/year = 0.1 Fungicide Insecticide Sub-total QTY/HA 200 5 0.12 800 1 200 pcs bag bag gram liter pc PRICE/UNIT 25 80 420 2 1,000 1 Value/Ha (P) 5,000 400 50 1,600 1,000 200 6,013 8,250 500 168 1,600 1,000 3,268

20 0.40 800 1

pc bag gram liter

25 420 2 1,000

10 0.40 800 1

bag bag gram liter

80 420 2 1,000

800 168 1,600 1,000 3,568

0.40 800 2

bag gram liter

420 2 1,000

168 1,600 2,000 3,768

15 0.40 800 2

bag bag gram liter

80 420 2 1,000

1,200 168 1,600 2,000 4,968

TABLE 3. BUILDINGS, TOOLS AND EQUIPMENT (ILANG-ILANG PRODUCTION) VALUE (P) Alyansa 1 Building 2 Water system 3 Oil extractor (100 kg capacity/batch) Sub-total Farmer level 1 Knapsack sprayer 2 Pruning saw 3 Bolo 4 Scythes 5 Bamboo crates Sub-total 1 1 1 pc pc set 100,000 30,000 300,000 430,000 1,500 250 300 35 300 2,385 ECONOMIC ANNUAL LIFE DEPRECIATION (YR) (P) 10 10 25 10,000 3,000 12,000 25,000 300 50 60 18 100 528

ITEM

QUANTITY

UNIT

1 1 1 1 6

pc pc pc pc pc

5 5 5 2 3

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T A B L E 4 . Y IE L D P R O J E C T IO N ( IL A N G - IL A N G F L O W E R S ) Y E A R P A R T IC U L A R S Y r . 3 Y r . 4 Y r . 5 Y r . 6 Y r . 7 Y r . 8 Y r . 9 Y r . 1 0Y r . 1 1 Y r . 1 2 Y r . 1 3 Y r . 1 4 Y r . 1 5 N o o f t r e e s2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 200 P r i c e p e r k 5g 0. 5 0 5 0 5 0 5 0 5 0 50 50 50 50 50 50 50 Y ie ld (K g ) P e r tre e 3 6 10 15 21 36 36 36 36 36 36 36 36 1 ha 6 0 0 1 , 2 0 02 , 0 0 03 , 0 0 04 , 2 0 07 , 2 0 0 7 , 2 0 0 7 , 2 0 0 7 , 2 0 0 7 , 2 0 0 7 , 2 0 0 7 , 2 0 0 7 , 2 0 0 2 ha 1 , 2 0 02 , 4 0 04 , 0 0 06 , 0 0 08 , 4 0 01 4 , 4 0 10 4 , 4 0 1 4 , 4 0 1 4 , 4 0 0 4 , 4 0 0 4 , 4 0 01 4 , 4 0 0 1 4 , 4 0 0 0 0 1 1 3 ha 1 , 8 0 03 , 6 0 06 , 0 0 09 , 0 0 01 2 , 6 0 20 1 , 6 0 20 1 , 6 0 2 1 , 6 0 2 1 , 6 0 0 1 , 6 0 0 1 , 6 0 02 1 , 6 0 0 2 1 , 6 0 0 0 0 2 2 4 ha 2 , 4 0 04 , 8 0 08 , 0 0 01 2 , 0 0 106 , 8 0 20 8 , 8 0 20 8 , 8 0 2 8 , 8 0 2 8 , 8 0 0 8 , 8 0 0 8 , 8 0 02 8 , 8 0 0 2 8 , 8 0 0 0 0 2 2 5 ha 3 , 0 0 06 , 0 0 01 0 , 0 0 10 5 , 0 0 201 , 0 0 30 6 , 0 0 30 6 , 0 0 3 6 , 0 0 3 6 , 0 0 0 6 , 0 0 0 6 , 0 0 03 6 , 0 0 0 3 6 , 0 0 0 0 0 3 3 6 ha 3 , 6 0 07 , 2 0 01 2 , 0 0 10 8 , 0 0 205 , 2 0 40 3 , 2 0 40 3 , 2 0 4 3 , 2 0 4 3 , 2 0 0 3 , 2 0 0 3 , 2 0 04 3 , 2 0 0 4 3 , 2 0 0 0 0 4 4 7 ha 4 , 2 0 08 , 4 0 01 4 , 0 0 20 1 , 0 0 209 , 4 0 50 0 , 4 0 50 0 , 4 0 5 0 , 4 0 5 0 , 4 0 0 0 , 4 0 0 0 , 4 0 05 0 , 4 0 0 5 0 , 4 0 0 0 0 5 5 8 ha 4 , 8 0 09 , 6 0 01 6 , 0 0 20 4 , 0 0 303 , 6 0 50 7 , 6 0 50 7 , 6 0 5 7 , 6 0 5 7 , 6 0 0 7 , 6 0 0 7 , 6 0 05 7 , 6 0 0 5 7 , 6 0 0 0 0 5 5 9 ha 5 , 4 0 01 0 , 8 0 0 8 , 0 02 07 , 0 0 307 , 8 0 60 4 , 8 0 60 4 , 8 0 6 4 , 8 0 6 4 , 8 0 0 4 , 8 0 0 4 , 8 0 06 4 , 8 0 0 6 4 , 8 0 0 1 0 0 6 6 1 0ha 6 , 0 0 01 2 , 0 0 0 0 , 0 03 00 , 0 0 402 , 0 0 70 2 , 0 0 70 2 , 0 0 7 2 , 0 0 7 2 , 0 0 0 2 , 0 0 0 2 , 0 0 07 2 , 0 0 0 7 2 , 0 0 0 2 0 0 7 7 1 1ha 6 , 6 0 01 3 , 2 0 0 2 , 0 03 03 , 0 0 406 , 2 0 70 9 , 2 0 70 9 , 2 0 7 9 , 2 0 7 9 , 2 0 0 9 , 2 0 0 9 , 2 0 07 9 , 2 0 0 7 9 , 2 0 0 2 0 0 7 7 1 2ha 7 , 2 0 01 4 , 4 0 0 4 , 0 03 06 , 0 0 500 , 4 0 80 6 , 4 0 80 6 , 4 0 8 6 , 4 0 8 6 , 4 0 0 6 , 4 0 0 6 , 4 0 08 6 , 4 0 0 8 6 , 4 0 0 2 0 0 8 8 1 3ha 7 , 8 0 01 5 , 6 0 0 6 , 0 03 09 , 0 0 504 , 6 0 90 3 , 6 0 90 3 , 6 0 9 3 , 6 0 9 3 , 6 0 0 3 , 6 0 0 3 , 6 0 09 3 , 6 0 0 9 3 , 6 0 0 2 0 0 9 9 1 4ha 8 , 4 0 01 6 , 8 0 0 8 , 0 04 02 , 0 0 508 , 8 0100 0 , 8 10 00 0 , 8 1 0 0 , 8 1 0 0 , 8 0 0 0 , 8 01 00 0 , 8 01 00 0 , 8 0 0 0 0 , 8 0 0 2 0 0 1 1 1 5ha 9 , 0 0 01 8 , 0 0 0 0 , 0 04 05 , 0 0 603 , 0 0100 8 , 0 10 00 8 , 0 1 0 8 , 0 1 0 8 , 0 0 0 8 , 0 01 00 8 , 0 01 00 8 , 0 0 0 0 8 , 0 0 0 3 0 0 1 1 T A B L E 5 . Y IE L D P R O J E C T IO N ( IL A N G - IL A N G E S S E N T IA L O IL ) P A R T IC U L A R S Y r. 3 Y r. 4 Y ie ld ( li) * 1 ha 6 12 2 ha 12 24 3 ha 18 36 4 ha 24 48 5 ha 30 60 6 ha 36 72 7 ha 42 84 8 ha 48 96 9 ha 54 108 1 0ha 60 120 1 1ha 66 132 1 2ha 72 144 1 3ha 78 156 1 4ha 84 168 1 5ha 90 180 * C o n v e r s io n = g flo w 1 0 0k Y E A R Y r . 5 Y r . 6 Y r . 7 Y r . 8 Y r . 9 Y r . 1 0Y r . 1 1 Y r . 1 2 Y r . 1 3 Y r . 1 4 Y r . 1 5 20 30 42 72 72 72 72 40 60 84 144 144 144 144 60 90 126 216 216 216 216 80 120 168 288 288 288 288 100 150 210 360 360 360 360 120 180 252 432 432 432 432 140 210 294 504 504 504 504 160 240 336 576 576 576 576 180 270 378 648 648 648 648 200 300 420 720 720 720 720 220 330 462 792 792 792 792 240 360 504 864 864 864 864 260 390 546 936 936 936 936 2 8 0 4 2 0 5 8 8 1 ,0 0 8 1 ,0 0 8 1 ,0 0 8 1 ,0 0 8 3 0 0 4 5 0 6 3 0 1 ,0 8 0 1 ,0 8 0 1 ,0 8 0 1 ,0 8 0 e 1r s =l i t e r e s s e n t i a l o i l 72 144 216 288 360 432 504 576 648 720 792 864 936 1 ,0 0 8 1 ,0 8 0 72 144 216 288 360 432 504 576 648 720 792 864 936 1 ,0 0 8 1 ,0 8 0 72 72 144 144 216 216 288 288 360 360 432 432 504 504 576 576 648 648 720 720 792 792 864 864 936 936 1 ,0 0 8 1 ,0 0 8 1 ,0 8 0 1 ,0 8 0

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Two, the LGU of Carranglan, Nueva Ecija shall initiate the planting of ilang-ilang trees along the national highway or provincial road of the municipality. An LGU-initiated planting of ilang-ilang trees along the main thorough fares of the Municipality of Carranglan, Nueva Ecija can augment the ilang-ilang flowers production of the 6-hectare ilang-ilang plantation of ALYANSA members.

In addition, this shall serve as additional source of income of the residents near these thorough fares.

Organization members shall be the main source of ilang-ilang flowers for essential oil extraction. They shall be paid by the organization member to be paid based on the prevailing price.

Harvests from the Municipalitys main thorough fares shall also be accepted by the project. They shall also be paid by the project based on prevailing price.

Decision to expand the area planted shall be a private responsibility of the members of the community-based organizations. The expansion of the oil extraction plant shall be a decision of the organization.

A community-based nursery treated as a profit oriented enterprise be established in the barangay . This will assure the availability of seedlings while it adds income to the owner of the nursery.

To encourage the owner of the nursery, the municipality and other government agencies shall buy their seedling requirements in the nursery. Assembly functions shall be done in the community.

The possibility of planting ilang ilang in hilly areas can be done. Pre processing at the farmers level can be done and sold to the organization in amber bottles for full processing.

1.4.1.3 Essential Oil Extraction Location, Building, and Site Layout The proposed location of the ilang-ilang essential oil extraction plant should be accessible and in close proximity to the plantation farm/s to be established. The proposed area is beneath the Municipal Building (Annex) where the office of ALYANSA is located.. TECHNICAL AND PRODUCTION STUDY

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Figure 2. Floor Plan of the Proposed Oil Extraction Plant

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Figure 3. Schematic Diagram of Ilang-ilang Oil Extractor

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The Ilang-ilang essential oil extraction plant shall have an estimated floor area of 300 sq. meters basically designed to accommodate the 100 kg capacity extractor with complete facilities including laboratories. Figure 2 shows the proposed layout and plan of the extractor plant.

The Oil Extractor

A schematic diagram of a typical oil extractor is shown in Figure 3. It consists mainly of a boiler or heated by a furnace, a condenser and an oil separator. Oil Extraction Processes

Steam Distillation Ilang-ilang oil production involves the extraction of oil using steam distillation method (Figure 4). In this method, the plant material is supported on a perforated grid some distance from the still. Below the charge is a perforated steam coil where high-pressure steam is introduced. The steam spread in several perforated grid, rises upward through the flower charges, thus the essential oil is extracted. The first fraction of oil carried over by the steam contains the most aromatic and valuable constituents of oil (esters and ethers, whereas the later fractions consists chiefly of sesquiterpenes that have little odor value). It is common practice to designate the first fraction as extra, which is usually extracted after two hours of extraction and the succeeding ones as , second and third, which are extracted every two hours respectively. There is, thus, a lowering of oil quality as distillation proceeds. This method shall be done at atmospheric pressure or under vacuum. A general steam distillation set-up consists of the following: Steam Source or Boiler a steam generator which supplies steam at the required pressure and flow rate for its passage through the plant material in order to extract the essential oil. Tank Still a cylindrical stainless where the plant material to be extracted is placed. Condenser - is a heat exchanger used in the condensation of essential oil and water vapors emanating from the tank still.

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Oil Separator a glass or stainless steel container used in the efficient separation of oil from water.
Fresh Flowers

SORTING Rejects STEAM DISTILLATION Solid Waste

DECANTATION

Spent Liquid

Spent Liquid
DEHYDRATION

Residue
PACKAGING

Ilang-ilang Oil

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Hydro steam Distillation Another method of oil extraction is hydro steam distillation. The method is similar to pure steam except that it utilizes water as the heating medium. In this method, the plant material is supported on a perforated grid some distance from the still. Below and not touching the grid is enough water for distilling the whole charge.

The water is heated by direct fire using different types of fuels such as LPG, wood, bagasse, wood shavings, rice hull, and other available indigenous fuel. The essential oil is extracted by wet steam rising through the plant charge. A general hydro steam distillation set-up consists of the following: Furnace a heat source for the heating of water inside the tank still and consequently distilling the plant charge in order to extract the essential oil. Tank Still - a cylindrical stainless steel tank where the plant material to be extracted is placed. Condenser is a heat exchanger used in the condensation of essential oil and water vapors emanating from the tank still. Oil Separator a glass or stainless steel container used in the efficient separation of oil from water.

Direct steam distillation excels the hydro steam distillation in terms of costs, capacity of production, and rate of distillation, but the initial cost of equipment is higher. Packaging of Extracted Oil Essential oil obtained from oil separator is in crude form. It may have suspended impurities and appreciable moisture content.

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Presence of moisture and impurities can adversely affect the shelf life and the quality of oil, To remove adhering moisture, sufficient quantity of a drying agent like anhydrous sodium sulfate is added to the extracted oil (about 1 gram for every 100 ml of oil). The oil with the drying agent is allowed to stand overnight, after which the mixture is filtered to remove the drying agent and suspended impurities. The dried oil is then stored in amber-colored bottles in a cool place to prevent destruction of the oil structures.

Time Required for Oil Extraction

Approximately 8-10 hours or one working day is required to complete one extraction cycle. Out of this, the best quality oil drips during the first 2 hours. This is called the first fraction. The second (second two hours) and third fraction (third two hours) comes out subsequently and should be placed in separate containers with labels as 2nd and 3rd fraction respectively.

Input Requirement The proposed plant can accommodate a maximum weight of 100 kg fresh flower in one day. The fresh flowers should be available early in the morning extraction.

Expected Output The extractor shall have a percentage recovery factor of 1%. It means that the 100 kg raw materials can produce around 1 liter of essential oil. The amounts of 1st, 2nd and 3rd extracts are divided proportionately. On the average the selling price of oil is P10,000 per liter.

1.4.2

Sampaguita Development Program

Sampaguita flowers based on literature survey and expert advice from specialists of the Department of Science and Technology (DOST) has low oil content and besides it requires an intricate process of extracting the oil content. Hence, at present, it is best TECHNICAL AND PRODUCTION STUDY

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suited for garlands production. Sampaguita production is labor intensive. Existing sampaguita farms ranged from 30 square meters to 2,500 square meters. 1.4.2.1 Potential Area for Sampaguita Production Considering the biophysical characteristics of the areas covered by ALYANSA, many areas are fitted for sampaguita production. However, for fresh flowers production, accessibility is a crucial factor. Fresh flowers have to reach the target market at the least possible time. Hence, areas along the national and provincial roads where ALYANSA members are found are potential areas for sampaguita production.

1.4.2.2 Implementing Strategy Sampaguita production shall only be planted as a backyard garden and/or as perimeter plants.

With a maximum area of 30 m2 per household.

Only ALYANSA members whose houses are along the national and/or provincial roads shall be encouraged to plant. Initially, 3 barangays with 10 households per barangay shall be encouraged to engage in sampaguita production. These are:

Puncan Joson Piut

Since these barangays are all along the national road, accessibility is not a problem.

Production of sampaguita flowers shall be on per household basis.

Garlands production shall be delegated to the cooperative or association member of ALYANSA within the barangay. Technical assumptions on sampaguita production are shown in Tables 6 9 below.

A sampaguita shrub starts to bear flowers six months after planting.

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Yield in year 1 is estimated at 5 liters per shrub per year or 125 liters per household per year.On year 2 onwards, yield shall increase to 15 liters per shrub per year or 375 liters per household per year. Material inputs shall include seedlings, fertilizer (organic & inorganic), chemical (insecticide, fungicides), and bamboo stakes.

The participating farmers shall shoulder the cost of production including the seedlings.The community-based association shall bear the risks of borrowing for its working capital ( to cover the cost of sales and operating expenses).

Sampaguita will be planted as a cover crop in hilly lands. It can crawl and develop roots on its branches that touch the ground, serving as anchorage. It will be planted in accessible areas to assure the freshness of the flowers for garland making or for packing.

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TABLE 6. TECHNICAL ASSUMPTIONS (SAMPAGUITA PRODUCTION) TECHNICAL ASSUMPTIONS 10 households Joson 10 households Piut 10 households Puncan 30 m2 125 li/hh/yr 375 li/hh/yr

Initial barangays/households to be involved:

Area to be planted per household: Production of sampaguita flowers : 5 Year 1 15 Year 2 onwards 30 Price per liter (P/li): Garlands production 1,000 Sampaguita flowers 1 Ilang-ilang flowers 1,000 Abaca 0.25 Labor 0.10 Overhead 2 Selling price of garland 0.15 Selling price of ilang-ilang Operating Expenses 0.05 Marketing expenses 5% Administtrative expenses Initial Investment 100% Farmer level 8.33% Association level

1 1 1 25

Association Association Association shrubs

liters/shrub/yr liters/shrub/yr Pesos/liter buds per liter of flower pc/garland garlands/kg abaca Pesos/garland Pesos/garland Pesos/garland Pesos/pc of sales of sales

1,250 li/brgy/yr 3,750 li/brgy/yr

6 buds/garland 500 Pesos/kg abaca

of cost of yr 1 prodn cost of annual cost of sales & & operating expenses 20% p.a./interest on loan

4 yrs repayment period 23,958 Pesos/for Yr.1 399 interest exp for 1 mos.

TABLE 7. SUPPLIES AND MATERIALS PER FARM (SAMPAGUITA PRODUCTION) ITEM Year 1 Sampaguita seedlings Fertilizer Chicken dung Urea(46-0-0) Ammophos (16-20-0) Fungicide Insecticide Bamboo stakes Sub-total Year 2 onwards : Replanting material Fertilizer Chicken dung Urea Ammophos (16-20-0) Fungicide Insecticide Sub-total QTY/SHRUB/YR QTY/FARM 25 Kg/shrubyear = Kg/shrubyear = Kg/shrubyear = g/shrub/year= ml/Shrub/year= Pieces/Shrub= 1.00 0.10 0.04 100 20 1.00 0.625 0.05 0.02 2.50 0.50 25.00 pcs bag bag bag kg liter pc PRICE/UNIT VALUE/FARM. (P) 50 80 410 420 1,000 600 1 5,000 50 21 8 2,500 300 25 7,904 75 50 21 42 3,750 450 4,388

% of total shrubs: 10% Kg/shrubyear = Kg/shrubyear = Kg/shrubyear = g/shrub/year= ml/Shrub/year= 1.00 0.10 0.20 150 30 0

3 0.625 0.05 0.10 4 0.75

pc bag bag bag kg liter

25 80 410 420 1,000 600

TABLE 8. TOOLS AND EQUIPMENT PER FARM (SAMPAGUITA PRODUCTION) VALUE (P) ECONOMIC LIFE LIFE (YRS) 5 5 2 3 ANNUAL DEPRECIATION (P) 300 70 18 100 488

ITEM FARM LEVEL Knapsack sprayer Bolo Scythes Bamboo crates Sub-total

QTY

UNIT

1 1 1 1

pc pc pc pc

1,500 350 35 300 2,185

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TECHNICAL AND PRODUCTION STUDY