PROJECT PROPOSAL

INCOME GENERATING PROJECT

I. BASIC INFORMATION

Project Title :DRAGON FRUIT PRODUCTION

Project Location : Cagayan State University, Gonzaga, Cagayan

Project Type :Income-Generating Project

Project Proponent : Mr. Quirino S. Jara, Coordinator, Special Projects

Dr. Genoveva C. Sapla, Extension Coordinator
Dr. Calixto B. Alicay, Research Coordinator

Implementing Agency :Cagayan State University, Gonzaga, Cagayan

II. BACKGROUND/RATIONALE
Dragon Fruit (Hylocereus undatus) production is gaining more and more recognition as
an important crop. It is a nutritious fruit with a variety of uses. The fruit pulp can be eaten fresh
and can be made into various valuable processed products. The fruit possesses medicinal
properties: it is known to prevent colon cancer and diabetes, neutralizes toxic substances such
as heavy metals, reduce cholesterol and high blood pressure. It is also reported to control high
sugar levels, prevent cancer and bleeding, and promote dental health. It is rich in vitamin C,
phosphorous and calcium which help to develop strong bones, teeth and skin. The fruit is
considered a health fruit(ICBF, 1992; Morton,1987).
A Dragon Fruit ProductionEnterprise has been demonstrated to provide viable source of
food, income and employment to growers locally and abroad. It could be an asset to backyard
growers as well as entrepreneurs of medium and large scale plantations. It is a fast return
perennial fruit crop with production in the second year after planting, and full production
within five years. It was also noted to sustain production up to twenty years provided desirable
cultural management practices are applied. Although the initial investment is relatively high,
profit is substantial and within 4-5 years, about 4-5 million pesos could be earned per hectare.
Dragon fruit is an ideal crop for dry areas but differs from other cacti species which are
of dessert origin because it requires sufficient rainfall ranging from 1.730 2.540 mm per year
to sustain its productivity. It can grow in varied types of soil provided the plantation area is well
drained.
On these premises, considering the climatic condition of Cagayan, CSU Gonzaga and
other neighboring communities can be ideal for dragon fruit production. Besides, according to
observation on the agro-physical characteristics of Dragon Fruit, the level of risk in producing
the crop is lesser and to some extent more tolerant to adverse weather conditions as compared
to the production of other high-value commercial crops.
The campus is undergoing intensive development in Organic Agriculture, establishment
of an Integrated and Diversified Organic Farming System and the nations battle cry to mitigate
climate change through its National Greening Program. Anent to this, since dragon fruit,
according to varied sources is a kind of fruit crop that can be grown organically and can be
produced in a partially shaded area, it is then a good candidate crop for the establishment of
organic agriculture and integrated and diversified organic tree- based farming system in
support to the campus thrust on agricultural modernization. However, available sources of
information on fertilizer management and multiple cropping schemes integrating dragon fruit
to other crops in location specific areas are still unavailable; hence a part of the production area
will be utilized for simple research activities.
III. OBJECTIVES
Generally, the project aims to establish a Dragon Fruit Production Project for income
generation.

Specifically, it seeks to:

1. Establish Production area of Dragon Fruit in a multiple cropping schemes.

2. Pilot the utilization of sub-marginal areas for income generation and maximum
utilization of land resources.

IV. MARKETING ASPECT

The marketability of Dragon Fruit in the locality is expected to be very high because of
limited number of commercial producers of the product. According to survey, there are only 3
farm owners cultivating an aggregate area of around 4 hectares of Dragon Fruit in the
municipalities of Gonzaga, Sta. Teresita and Sta. Ana. Nevertheless, buyers do not feel the
abundance of the product because the price remains as high as 100.00 to 150.00 pesos per kilo.
Since the project starts with a micro scale of only two hundred (200) hills, the immediate
market outlet will be the faculty and students and within the municipality of Gonzaga. In the
future, production is expected to rise; hence, marketing strategies and expected outlets shall
be thoroughly examined. When there will be surplus volume of production that cannot be
bought by the usual clients (faculty, students and the community), products will be advertised
and sold to the neighboring municipalities of Sta. Ana and Sta. Teresita and commercial centers
within the province as the case maybe. Should there be good promise for Dragon Fruit
processing, production will be continuously increased and shall be processed at the CSU-DOST
Product Development and Training Center.
V. TECHNICAL ASPECT
The management and technical considerations in Dragon Fruit Production do not
require sophisticated technology. It is a matter of following the desired procedure
recommended by experts plus personal knowledge and interest shall ensure the success of the
endeavor.

Technical considerations

Climatic Requirements- Dragon Fruit (Hylocerius undatus), although a member of the

family Cactaceae requires adequate water because they originated from tropical
rainforest unlike other cacti which are of desert origin. It requires around 1.7-2.5 mm of
rainfall to sustain good growth and productivity. Hence, it is very ideal to be grown in
most parts of the Philippines including the province of Cagayan.
Site Selection- Since one objective of the project is to demonstrate the productivity of
selected crops in sub-marginal areas, the plantation will be established at the stony sub-
marginal flat area behind the administration building of the campus.

Soil Requirements- Dragon Fruit could be grown in wide range of soil types provided it is
well-drained. However, the most ideal soil type is rich in organic matter and slightly
acidic. Since the area to be used is sub-marginal, organic fertilizer will be applied to
patch up the lacking amount of organic substances in the soil.

Selection of Planting Materials and Nursing of Cuttings- Use of asexual propagation is

most practical and cheapest way of propagating dragon fruits. Use of seeds entails
longer time to grow and produce fruit. Besides, the plant is open pollinated and the
progeny may not come true to type unlike cuttings that there is 100% guarantee that
your plant will carry the characteristic of the mother plant. Matured cuttings will be
taken from a healthy mother plant just after fruiting season. The entire segment of the
stem should be taken preferably 20-60 cm in length. Cuttings will be pre-rooted or
hardened in the nursery one month before planting in the field.

Land Preparation and Weeding- Since the prospect is to develop production area for
dragon fruit in a multiple cropping scheme, the area will be properly cleared before
 laying out the plantation area and placing of posts. Plowing and harrowing in between
posts to be planted with desirable intercrop will follow to prevent growth of weeds.

Trellising- A 4x4 x 2 meter concrete post will be used as trellis. Distance of trellis will
be 3 m x 3 m to accommodate 110 plants per hectare. The 50 cm length of the post will
be buried to the ground so that it will be strong enough to hold around 100 kgs of
lateral vines and to withstand adversities brought about by typhoons and heavy winds.
A desirable rubber tire braced with strong iron bar will be anchored at the top end of
the post to serve as agent in forming an umbrella like structure of the hanging vines.

Preparation of Planting Hole and planting - One hole of 20 cm wide and 30 cm depth will
be dug within the four walls of post for planting. One Kilogram of organic fertilizer mixed
with top soil will be placed at the hole properly incorporated and loosened before
planting. Pre-rooted/hardened cuttings will be planted one in each hole and watered
immediately to prevent newly planted cuttings from wilting.
Managing Growing Plants- The plants grow fast and climb in the post in a short period.
Damaged on the growing vines may occur if they will fall on the ground, hence, tying
loosely to the post should be undertaken. Only outer leader vines are allowed to climb
the post to ensure vigorous growth. Once the vines reaches the top of the post just
above the rubber tire previously placed, structural pruning should be undertaken by
removing the tip of the main stem to allow growth of new shoots to grow laterally and
climb at the rubber tire to form an umbrella like structure of vines where flowers will
emanate and develop into fruits. The plants could develop around 30 productive lateral
stems between its first and second year. It is expected that thick dense mass of lateral
stems will increase to around 130 during the ensuing years. Excessive number of
growing lateral stems will increase the advent of pest and diseases, hence, desirable
number of lateral stems only should be maintained to ensure vigorous growth.
Irrigation- The type of climate in Cagayan is very conducive in the production of Dragon
Fruit, hence, intermittent irrigation will only be done when there will be prolonged dry
 spell or when the need arises most specially during the reproductive period of the
plants.
Fertilizer Application - Dragon Fruit, like any other crops, requires judicious application
of fertilizer for higher yields. Initial amount of fertilizer to be applied basally before
planting will be 1 kg. vermi compost and 50 grams of urea (46-0-0) mixed with
ammonium phosphate (16-20-0) 3 months after planting. Kind and amount of fertilizer
to be applied in the ensuing months will be based on crop stand.
Pests and Disease Control- Dragon Fruit is a kind of crop which is comparatively free of
pest and diseases. Prevalence of common insects like ants, scale insects, mealy bugs and
the like will be controlled through the application of common insecticide. If there will be
advent of common diseases like stem rot and anthracnose, application of desirable
fungicide will be administered.
Harvesting- Fruits can be harvested 30 days after fruit set or 40-50 days after flowering.
However, if fruits will be sold within the school populace and within the municipality,
harvesting will be done 50 days after flowering to allow the fruit attain its maximum
sweetness and weight. It is expected that there will be deformed or split fruit; hence,
they will be processed at the Product Development and Training Center as added
income.
VI. FINANCIAL ASPECT
A. ESTIMATED MATERIAL COST
Item of Expenditure 1st Year 2nd Year 3rd Year 4th Year 5th Year Total
Dragon Fruit 12,000.00 - - - - 12,000.00
Cuttings @ 15.00
per piece
vermi compost(50 4,800.00 2,520.00 2,646.00 2,778.30 2917.22 15,661.52
kgs. per bag) @
300.00 per bag
Ammonium 900.00 945.00 992.25 1,041.86 1,093.95 4,973.06
Phosphate (16-20-
0) @ 900.00 per
bag
Urea (46-0-0) @ 1,200.00 1,260.00 1,323.00 1,398.15 1,467.61 6,648.76

1,200.00 per bag

Complete Fert. 1,200.00 1,260.00 1,323.00 1,389.15 1,467.61 6,648.76

(14-14-14) @
1,200.00 per bag
Foliar Fertilizer 250.00 262.50 275.63 289.41 303.88 1,381.42

(Super Bloom) @
1,000.00 per pack
Fungicide 250.00 262.50 275.63 289.41 303.88 1,381.42

(Dithane) @
1,000.00 per pack
Insecticide @
1,000.00 per liter 500.00 525.00 551.25 578.81 607.75 2762.81

22,100.00 7,035.00 7,386.76 7,774.09 8,161.90 51,457.69

 B. ESTIMATED LABOR COST (1,800 sq. meter)
MD- Man Day 250.00 per MD
Item of Expenditure 1st year 2nd Year 3rd Year 4th Year 5th Year Total
Clearing 1,000.00 - - - - 1,000.00
Laying-out 500.00 - - - - 500.00
Digging of Holes 5,000.00 - - - - 5,000.00
and placing of
posts: 20 MD
Preparation of 2,500.00 - - - - 2,500.00

planting holes
including
application of
vermi compost: 10
MD
Hauling of planting 1,250.00 - - - - 1,250.00

materials, planting
and replanting: 5
MD
Fertilizer 1,000.00 1,050.00 1,102.50 1,157.63 1,215.51 5525.64

Application
Control of pest and 750.00 787.50 819.00 859.95 902.95 4,119.40

diseases
Weeding and 2,000.00 2,100.00 2,205.00 2,315.25 2,431.01 11,051.26

cultivation
Water 1,000.00 1,050.00 1,102.50 1,157.63 1,215.51 5,525.64

management
262.50 551.25 578.81 607.75 2,000.31
Prunning
1,000.00 1,575.00 2,205.00 2,894.06 3,038.76 10712.82
Harvesting
500.00 1,050.00 1,653.75 2,315.25 2,431.01 7950.01
Marketing
TOTAL 16,500.00 7,875.00 9,639.00 11,278.58 11,842.50 57135.08
 FIXED COST
Life Depreciation Cost
Item of Expenditure Total
Span 1st Year 2nd Year 3rd Year 4th Year 5th Year
200 pcs. 20 yrs. 2,500.00 2,500.00 2,500.00 2,500.00 2,500.00 12,500.00

Concrete Post,
4x4x2m. @
250.00 each
240.00 240.00 240.00 240.00 240.00
40 pcs. 10mm 20 yrs. 1,200.00

Iron Bar @ 120

each
500.00
200 pcs. Used 20 yrs. 100.00 100.00 100.00 100.00 100.00

motorcycle tire
@ 10.00 each
1 Unit Knapsack 5 yrs. 500.00 500.00 500.00 500.00 500.00 2,500.00
Sprayer @
2,500.00
1 yr. 5,000.00
1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
5 pcs Basket Tray
@ 200.00 each
10 pcs Wooden 2 yrs. 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 6,250.00
Crate @ 250.00
each
Total 5,590.00 5,590.00 5,590.00 5,590.00 5,590.00 27,950.00

Basic Assumptions:
Production per hill per year in kilos (200 posts)
1st year: 6 2nd year:8 3rd year: 12.5 4th year: 14 5th year: 16 kgs
Price per kilo of Dragon Fruit = 100.00
Labor Cost, Material Cost and price of fruit will increase @ 5% per year
VII. COST AND RETURN ANALYSIS

COST AND RETURN ANALYSIS

Dragon Fruit Production (5 years)

Revenue

Sales of Fresh Dragon Fruit 1,276,713.00

Total revenue 1,276,713.00

Less: Expenditures

Cash Expenses:
Cost of Materials 52,457.75
Cost of Labor 57,135.08
Miscellaneous Expenses 16,576.90

Contingency (5%) 6,308.49

Total Cash Expenses 132,478.22

None Cash Expenses

Depreciation 27,950.00

Total None Cash Expenses 27,950.00

Total Expenses 160,428.22

Net Income 1,116,284.78

Net Profit Margin 87 %

 PROJECTED INCOME STATEMENT
Dragon Fruit Production

Year 1 Year 2 Year 3 Year 4 Year 5

Sales:
Sales of Fresh Dragon Fruit 120,000.00 168,000.00 275,625.00 324,128.00 388,960.00
TOTAL SALES 120,000.00 168,000.00 275,625.00 324,128.00 388,960.00
Less: Expenditures
Cost of Materials 22,100.00 7035.00 7,386.76 7,774.09 8,161.90
Cost of Labor 16,500.00 7,875.00 9,639.00 11,278.58 11,842.50
Miscellaneous 3000.00 3,150.00 3,307.50 3,472.88 3,646.52
Contingency (5%) 2,080.00 903.00 1,016.66 1,126.28 1,182.55
Depreciation 5,590.00 5,590.00 5,590.00 5,590.00 5,590.00
TOTAL CASH EXPENSES 49,270.00 24,553.00 26,939.92 29,241.83 30,423.47
NET INCOME 70,730.00 143,447.00 248,685.08 294,886.17 358,536.53
NET PROFIT MARGIN 59% 85% 90% 91% 92%
 PROJECTED CASH FLOW
Dragon Fruit Production

1 2 3 4 5
CASH INFLOW
Sales:
Sales of Fresh Dragon 120,000.00 168,000.00 275,625.00 324,128.00 388,960.00
fruit 120,000.00 168,000.00 275,625.00 324,128.00 388,960.00
TOTAL CASH INFLOW
CASH OUTFLOW
Cost of Materials 22,100.00 7,035.00 7,386.76 7,774.09 8,161.90
Cost of Labor 16,500.00 7,875.00 9,639.00 11,278.58 11,842.50
Miscellaneous 3,000.00 3,150.00 3,307.50 3,472.88 3,646.52
Contingency (5%) 2,080.00 903.00 1,016.66 1,126.28 1,182.55
TOTAL CASH OUTFLOW 43,680.00 18,963.00 21,349.92 23,651.83 24,833.47
CAS SURPLUS (A-B)
OPENING BALANCE 0 76,320.00 225,357.00 479,632.08 780,108.25
CLOSING BALANCE 76,320.00 225,357.00 479,632.08 780,108.25 1,144,234.78
VIII. SOCIO-ECONOMIC AND ENVIRONMENTAL IMPACT

Demonstrate adoptable technology in Dragon Fruit Production as on-farm laboratory for

students and other stakeholders.
Promote the utilization of sub-marginal areas for productive endeavor.
The production endeavor is environment friendly and helps mitigate climate change.

Prepared By:

QUIRINO S. JARA
Coordinator, Special Projects

GENOVEVA C. SAPLA, Ph. D.

Extension Coordinator

CALIXTO B. ALICAY. Ph. D.

Research Coordinator

Recommending Approval:

EMELYN S. QUERUBIN
IGP Coordinator

Approved:

FLORANTE VICTOR M. BALATICO, Ph. D.

Campus Executive Officer

Note: Status: Establishment of the plantation area is around 95% completed.QSJ