kaong makingKaong or sugar palm (Arengga Pinnata) is a minor forest species that produces food. Its nuts are made into kaong preserve which is good for dessert or as an ingredient in fruit salads and the palm sap is made into vinegar. These products are sold in the local and export markets.

I. Estimated Investment Cost

Production Cost/Capital Outlay

Materials
White sugar, 360 kgs @ P36/ kg – P12,960
Sodium metabisulfite, 200 grams – 40
Bottles, 2,880 pcs @ P20/bottle – 57,600
Plastic sealer, 2,880 pcs @ P1/ pc – 2,880
Fuelwood, 100 bundles @ P20/bundle – 2,000
Ladle, 2 pcs @ P50/pc – 100
Oil can, 10 pcs (5 gal. cap. @ P50/pc) – 500
Wok, 1 pc – 450
Strainers, 2 pcs @ P200/pc – 400
Kaong nuts, 1,200 bunches @ P60/bunch – 72,000
SUBTOTAL – P148,930

Labor
Procurement of nuts
(3 days/ mo@ P380/head x 12 mos.) – 13,680
Cooking and extraction of nuts
(6 days/ mo @ P380/head x 12 mos.) – 27,360
Sterilization, bottling, sealing @ P3/bottle x 2,880 bottles – 8,640
SUBTOTAL – 49,680

Transportation
(1,200 kg/mo x 12 @ 0.40/kg – 5,760

Utilities
Electricity – 7,596
Water – 3,042.60
SUBTOTAL – P10,638.60
ESTIMATED TOTAL INVESTMENT COST – P215,008.60
* As of February 2009 prices

II. Procedure

Harvesting
1. Select the bunch having having mature fruits. A bunch may contain 4,000-5,000 fruits.
2. Cut selected bunch using a sharp bolo (30-50cm) from the main trunk.
3. Bundle the bunch of the fruits for easy handling and transporting.
4. Detach individual fruit using a knife. Do not touch the sap as it causes skin irritation.

Extraction
1. Place the fruits in the container and add water just within the level of the fruits.
2. Boil for two to three hours.
3. Cut the tips of the fruit at 1cm crosswise from the apical portion.
4. Prick the meat in the upper portion of the fruit using a knife.
5. Wash the meat with clean water, two to three times to eliminate unnecessary materials.
6. Soak the meat in water overnight to maintain the freshness.
7. Strain the meat in the plastic mesh/strainer.
8. Unsweetened kaong is ready for market.
Caution: Kaong fruits are toxic for dogs.

Processing into Kaong Preserves:

1. Prepare syrup by boiling two cups white sugar, one cup water, and 0.1% Sodium metabisulfite.
2. Add three cups of kaong to the boiling syrup.
3. Cook for 10 minutes and cool.
4. Place kaong in a sterilized bottle and seal.
5. After sealing, boil for another 10 minutes to eliminate the air bubbles.
6. Label before marketing.

Source: DENR “Sustainable Livelihood Options for the Philippines”

III. Estimated Costing and Pricing

A. Product Costing

1. Direct Cost
Kaong nuts – P72,000
White sugar – 12,960
Sodium metabisulfite – 40
Bottles- 57,600
Fuelwoods – 2,000
Water – 3,042.60
Labor – 49,680
(Include procurement of nuts, cooking and extraction of nuts, sterilization, bottling and sealing)
TOTAL DIRECT COST – P197,322.60

2. Indirect Cost
Plastic sealer – 2,880
Laddle – 100
Oil cans – 500
Wok – 450
Strainers – 400
Electricity – 7,596
Transportation – 5,760
TOTAL INDIRECT COST – P17,686

3. Production Cost
Total Direct Cost – P197,322.60
Add: Total Indirect Cost – 17,686
Estimated Production Cost – P215,008.60

B. Product Pricing
Total Production Cost – P215,008,60
Add: 10% mark up – P21,500.86
TOTAL – P236,509.46

Estimated Selling Price/Bottle – P82.12
(Total production cost + 10% mark up divided by 2,880 bottles of 900 grams/ bottle)

Market Price/ bottle of 900g – P85 or more

IV. Business registration, Permits and Licenses here.

V. Funding sources for your business here.

Source: dti.gov.ph
Image: dar.gov.ph

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