Feasibility Study on Yemane Extract as Termite Killer

Topics: Supply and demand, Costs, Microeconomics Pages: 22 (6880 words) Published: January 28, 2013
| AECO 141|
| Roy Marie P. Botengan

[A Feasibility Study on Establishing a Small-scale Business of Yemane (Gmelina arborea) Extract as Termite Killer]| |


Yemane (Gmelina arborea) is one of the best timbers of the tropics since it may last for 15 years in contact with the soil based on their graveyard tests. Chemical constituents from the bark have not been reported, although some chemical constituents from part of this plant (heartwood, leaf, and root) are known. The bark protects the tree from any attack by a microorganism, insect, pest, or by any harmful chemicals in the atmosphere. There are reports that the stem of Yemane contains compounds that are inhibitory against insects.

Termites are woods most hated enemy and in the Philippines, there are many houses made out of wood. These little pests will slowly bring your house down. Not only will they make walls and floors unstable, they will feed on your chairs, tables and doors if left unchecked. Termites cause more damage than tornadoes, typhoons, storms, and hurricanes combined. People can buy insurance for many sources of home damage, but not for termites. Termites can damage approximately 1.5 million houses annually.

Here in Los Banos, there many houses, buildings, infrastructures, and even furnitures that are made of wood. And termites are one of the major causes of the destruction of these things. Termite killers are not widely used here in Los Banos since they prefer a different way of exterminating the termites. People in Los Banos, or even in other areas, kill termites in a non eco-friendly way. They usually locate the colony of termites and kill them with the use of gas and fire that is harmful in our environment.

The general objective of this project is to test whether it is feasible to establish this business proposal here in Los Banos or not. The specific objective is to determine the market, technical, organizational and financial viability of the operation business up to its 5th year of operation.

All the materials needed for the proposed projected will be bought. The yemane bark, which is the main ingredient for the project, will come from the lumber processors in Pagbilao, Quezon. These inputs will be processed in Los Banos, Laguna.

The production site and shop will be located along the highway of Brgy. Anos, Los Banos, Laguna. This proposed business will be on a small-scale level here in Los Banos, Laguna since it is a new product that will compete with other existing termite killers.

The liquid used for exterminating the termites will be extracted from the bark of Yemane tree by means of soaking it in water. The target market of the yemane extract is everyone here in Los Baños, Laguna that is affected by the damages caused by termites and the others coming from the nearby towns. Through time, when the awareness of the said product increases it will be made available to the domestic market. And also, it will have the potential to be made available on the international market making it competitive with the other similar products.

I. Demand
The proposed business would target the potential households and owner of establishments that are affected by termites.

A. Factors Affecting Demand
Factors that would likely to affect the demand are own price, cross price and consumer’s preference. These include the price of Yemane Extract Termite Killer, prevailing price of similar products, and the reaction of consumers towards the proposed product and other competing products. Also the demand for the product would depend on their need to use it and how necessary for them to utilize the product. Another factor that could affect the consumption of Yemane Extract Termite Killer is the income per household. Income affects the demand for the proposed product since termite killer is not a necessity...
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