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INTRODUCTION
Filipinos are known to eat five times a day and has the tendency to have snacks in
between meals. Some favourite snacks include burgers, pizza and sandwiches which
both imported and locally processed, are consumed by the Filipinos in 2006. Many of
these include home-based production of traditional cheeses like kesong puti or cottage
cheese. However the consumption of the Filipinos is still low compared to other
countries. Nevertheless, it can be noted that the cheese consumption of the Philippines
along with other Asian countries like Japan and South Korea are rapidly growing.
and the largest potential growth is still in the main importing regions of Asia including
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the Philippines wherein local production cannot catch up with the growth of
consumption. This entails the need for the country’s dairy industry to improve and go
into local cheese productions so as to share with the chunk of profit earning ventures in
the industry.
In April 19-May 8 this year, several interested students along with State
Universities and Colleges (SUCs), technology developers and UPLB faculty and staff
have undergone a training sponsored by the Agriculture, Forestry and Natural Resources
University of the Philippines Los Baños. The university is known to have a long list of
technologies developed every year. As seen by the AFNR Program, these technologies
can be a good source of profit if properly used and marketed. Thus, they conduct the
short-course training to help the university utilize the technologies and at the same time
Eventually the technopreneur of this study was one among the interested students
who went through the training and was now on the process of starting up a business for
DTRI-UPLB, with proper guidance of Professor Olivia C. Emata, head of Dairy Products
interested with the training as she has experienced having small business experiences in
her high school years. Also, her topic for the Special Problem was supposed to be about
whey, the by-product of cheese making. But then, the idea of starting up a business
utilizing the technology of UPLB encouraged her more, and thus resulted to the start of
this study.
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Significance of the Study
This study is about the actual experience of the student on conducting a start-up of
the actual operations of the business start-up. These experiences of taking actual
decisions on a real business set-up let the student learn to apply and properly strategize
on solving the problems dealing with the basic functions of the business.
This may also be a helpful tool not only to DTRI but also to the existing and
ideas about the new consumer concepts that this study will be generating.
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Specifically, the study aims to:
venture;
6. Come up with courses of actions for the implementation of the business plan,
the enterprise, and the AFNR Program, and to identify investment and development
the production runs wherein the marketing and other areas of the study are dependent on.
Also, the location of marketing is still limited to Los Baños, Laguna due to the limited
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finances the technopreneur has. The yield of the production runs also is a constraint to the
marketing of the product as it has no fixed volume. Ricotta is not known to the
consumers yet, that is why there is a need for product samples for taste tests and a brief
Production runs are also highly dependent on the working capital available to the
technopreneur, thus it inhibits the growth of the enterprise whenever there is not enough
cash on hand.
Definition of Terms
Curd - a substance consisting mainly of casein and the like, obtained from milk by
coagulation, and used as food or made into cheese.
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Whey - a milk serum, separating as liquid from the curd after coagulation, as in cheese
making.
The technopreneur of this study, Pauline Carmel Joy Eje does not really have a
formal entrepreneurial background from the family she grew up in. Her family, however,
has been transferring to different barangays in her place of birth, Calapan City, as far as
she can remember with her childhood days. This was said to be one of the sources of
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ideas for entrepreneurial activities of many. During their transferring of residency, her
family easily copes up with the community and had good relationship with the
neighbours. She has been a witness to her parents’ sidelines along with their teaching
career, in order to raise the four children of the family well. Her mother has been a dealer
of Tupperware and for some time beauty products from Avon and Christmas light during
its season. This did not really occur deep in the technopreneur’s mind as she was aspiring
to become teacher like her parents during this time. She just realized that these observed
She spent her elementary and secondary years at the city’s pilot schools. It was
when she was in her 4th year in high school when she got interested to being an
entrepreneur. Using her own allowance and some of her earned money as capital, she
ventured into selling biscuits, pad papers, candies and chocolates to her classmates little
by little, and these made her popular in the class, as well as in the adjacent classrooms to
her homeroom. At first, she was hindered by the school rules regarding the utilization of
the school canteen. But then, her homeroom adviser, upon learning about her venture,
allowed and further encouraged her to continue it. Her classmates preferred to buy from
her most of the time, since they do not have to go to the school canteen which was a bit
far from the classrooms. Also, she accepts suggestions as to what will be the other
products she can offer in class. This further improved her profits given the fact that the
customers really like the product. She just used some simple computations to realize her
profits from her ventures, and the thought of earning from these really encourages her to
During one of her trip to Manila to take a college entrance examination, she was
given a chance to have a trip to Divisoria for the first time. Upon seeing some products
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that will help in making some of the requirements in class like stencils and stickers,
which she knew were not available in the school supply stores near the school, she
invested some of her pocket money in wholesale buying of these stuffs. Eventually, she
Her selling experiences during her 4th year in high school gave her the idea of
taking a course that has something to do with businesses, and thus led her to taking up
B.S. Agribusiness Management at the University of the Philippines Los Baños. At first,
she was tempted to take up Nursing, which was the trend during those times, for college,
but the idea of having a business of her own encouraged her more. Her family’s support
Her experiences in her ventures were not always successful though. During her 2nd
year in college, she had the chance to experience electronic load retailing, which she
found not the business for her. She had a hard time with maintaining her capital since her
customers were mainly roommates, dorm mates, classmates and other friends. They tend
to text her whenever they need load. She experienced difficulty in collecting for the
payments, which she should have used for the next load she will use for retail.
Eventually she stopped this business and went into being employed as a tutor of a
Grade 2 student and a student assistant to a professor in the university. This time, it was a
products to customers. There was no concrete gauge as to the effectiveness of the tutorial
service as well as the assistance given to the professor. However, it was demanding more
time than her previous experiences in business. Also, her eagerness to decide or innovate
on things was being limited by being employed. Thus, she was further persuaded to have
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In the summer of 2010, she was given the chance to be a part of the short course
offered by the Agriculture, Forestry and Natural Resources (AFNR) together with
She became interested with the technopreneurship study, a newly offered type of
Special Problem, that’s why she was able to come up with this study.
Dairy Industry
According to the U.S. Department of Agriculture, the top five largest export
countries for dairy products are Mexico, Canada, Japan, China and Philippines. Mexico
imports all their dairy products and is still expected to rise due to their demand for
processing inputs, and demand from tourism and retail sectors. Canada and Japan, on the
other hand, depends on the U.S. for their imports and exports of dairy products. Also,
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The Philippines, which has only 1% domestic production supply and its demand
is also seen to have high dependence on the U.S. and other countries for imports of dairy
The top three exporting countries in the Philippines in 2008 were New Zealand,
United States and Australia. Forty-two percent of the imports came from New Zealand,
18% from United States and 15 % from Australia. Nestle Philippines alone, accounted for
One factor for high imports is the very low cost of tariff imposed on imported
milk. Also, importation is needed by the country due to the low volume of local supply
which could not address the whole country’s demand for milk. There is seen to be a
continuous increase in the number of institutional buyers and distributors of local fresh
milk, coffee shops serving fresh milk and milk booths at the malls.
Local dairy farmers, with the help of the government through the National Dairy
Authority were given the chance to own the milking cows, which the NDA imported
from other countries. This increased the population of dairy animals as well as the milk
supply in the country. Ultimately, this opportunity gave life to the dairy industry in the
Philippines.
With the continued support from the government, the dairy industry in the country
grew and actively helped in the economy. It also gave opportunity to those who had the
Cheese Industry
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According to history, in 400 A.D., the Dutch has started producing and this
activity has been improved along with the progress in the cattle breeding improved, and
has been further passed on across countries making cheese a popular food product.
In the Philippines, the history of cheese production cannot be traced. The country
has locally produced cheeses, but still the company has to import cheese from the major
producers in the world. New Zealand is the top supplier of processed cheese to the
Philippines. Australia and the United States are also key sources. Competition has greatly
intensified among the major players, especially coming from the European Union which
institutional buyers prefer mozzarella (for pizza), parmesan (for pasta) and processed
cheese (for food preparations). The Edam cheese, known to Filipinos as keso de bola, is
highly saleable during the Christmas season. Cream cheese, on the other hand, is known
for being a spreadable type and is commonly incorporated with breads and bagels. There
are still many other types of imported cheese available in the supermarkets (Table 1).
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Table 1. Imported Cheese Brands By Country of Origin
Cheese Type Brand Country of Origin
Singles Bega, Lemnos, Millel Romano Australia
Happy Cow Austria
Arla Danish Emmental Denmark
La vache qui rit, President, Welcome France
Land O'Lakes USA
Cowhead Singapore
Anchor New Zealand
Coon Australia
Cut-up Emborg Austria
Babybel, Bonjour de France, Elle&Vire,
Entre mont, Kiri chef France
Frico Holland
Garcia Baquero Spain
Bouton dor New Zealand
Australian Gold Australia
Millel, Denmark's Finest, Puck,
Rosenborg, Arla Denmark
Mainland New Zealand
Coon Australia
Frico Holland
Eight portions circle Happy Cow, Emborg Austria
Buko, Miss delissy Denmark
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La vache qui rit France
Flavored Cheese Mama Lucia Australia
Mozzarella Coon Australia
Arla Denmark
Perfect Italiano, Millel Australia
Parmesan Marca Piña, Old Fashioned Foods,
Kraft, Chianti USA
Spreadable Puck Denmark
Lemnos Australia
Generally, natural and processed cheeses are two categories of cheese. Natural
cheese is one that is made from milk or skim milk, in contrast to processed cheese, cheese
spread and the like. Cheese is one of the most versatile and nutritious food. It is most
frequently used by homemakers in meal planning and preparation. It is typically used for
sandwiches and appetizers, and can be grated as toppings on soups, spaghetti and pizza.
From the simple consumption to growing into a larger and more complex market,
the Philippine cheese market has evolved over the years. This is supported by the wide
variety of product offerings in the market—from the low-priced long shelf spreads to
The country’s double income households highly support the purchasing power of
Filipinos for cheese products. It resulted to the increase of Filipinos preference for dining
out, food delivery and purchases of convenient easy to prepare foods. This can further be
observed in the proliferation of fast food chains, coffee shops, take out counters and food
deliveries nowadays.
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For local players in the industry, it has been observed that the tactic of using
smaller pack sizes is becoming effective as it encourages more users, considering that
Filipinos, while brand conscious, are also price sensitive. Even the popular brands, which
are commonly from other countries, have adopted this scheme and thus making their
products more saleable. The small-pack strategy is most likely the major factor driving
value growth among local manufacturers since it encourages more frequent and less-felt
To complement the smaller pack sizes, companies have set their sights on small
but numerous traditional retail outlets, particularly sari-sari stores which highly offer
convenience along with the affordability for the buying experience of the end-consumers.
There is a very high potential for growth as the main importing regions in Asia, including
the Philippines, where local production cannot cope up with the growth in consumption.
Whey
from the milk or cream. After the cheese curds are formed, the remaining liquid is called
whey. This liquid is watery and thin. Sometimes whey has a tinge of bluish color, but this
base of many protein drinks for athletes or others wishing to build or repair muscle
tissues. Whey is also an important supplement for those who have limited mobility in the
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pet foods as a source of protein and fats. It contributes to a healthy coat and proper
muscle development.
In the United States, whey is causing a problem in their waste disposal facilities.
Of the 14 billion kilograms of whey produced in 1973, only 6.9 billion kilograms has
been reprocessed, while most of the other 7 billion kilograms were disposed off as waste.
As a result, cheese manufacturers as well as dairy scientists and the dairy industry
have been put under pressure once again to stop dumping whey into streams and
municipal sewage systems, due to growing concern over pollution and environmental
control. Thus, researches are done to come up with a way to utilize, rather than throw off
this by-product. The most logical use then would be to return the whey to the human food
chain in a palatable form, in the light of growing global food shortages (Holsinger et. al.).
cheese manufacturers, for a long time already. But nowadays, whey industry is a
promising venture as it increasingly taps into the potential health and functional benefits
Ricotta
Technically, ricotta is not a cheese at all, but a cheese by-product. Its name,
ricotta, means cooked again, an obvious reference to the production method used to make
it. Ricotta is made from the whey drained from such cheeses as mozzarella, provolone,
and other cheeses. It is a fresh, soft, snowy white cheese with a rich but mild, slightly
sweet flavor. The texture is much like a grainy, thick sour cream. Ricotta is naturally low
in fat, with a fat content ranging from 4 to 10 percent. It is also low in salt, even lower
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than cottage cheese. Since ricotta is made primarily from lactose-rich whey, it should be
shavings, cinnamon, sugar, honey and orange flower water. Commonly, it is used in
savory dishes, including manicotti, lasagna, and ravioli (APPENDIX 4). Recipes can be
easily downloaded from the internet for every interested individual and these helps the
The Italian way of producing the ricotta is said to have the better taste and quality
as it is originally made from whey. The acidity gained at the start of the production, as
well as the whey’s composition from the previous cheese making process, contributes to
the distinct taste of it. On the other hand, the American ricotta which is commonly made
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BUSINESS PLAN
The Product
The venture is going to provide the market with Ricotta Cheese made from whey
or a probable substitute, the raw milk from cow, the by-product of cheese making. It is
not a new type of cheese, but is not yet known to the Philippine market due to very low
production because of the very low yield per production. Ricotta cheese is known to have
high protein content, basically from whey, and has lower fat and salt content as compared
making, obtained from gently reheating of the leftover whey until soft curds are formed
from its residual proteins, sometimes with a little milk added. The curds are then drained,
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and the delicious, white, fluffy stuff what’s left is ricotta, which actually means “to cook
again”, that is obvious in the process of coming up with the product. Moreover, ricotta
has the added bonus of being relatively low in fat, at only about 4-10 percent.
The precipitation of the curd is caused by the heat treatment, combined with the
effect of the acidity. Also, being exposed to a high temperature of about 90-95 degree
Celsius, results in the denaturation and disulfide bonding of some of the whey proteins,
particularly b-lacto globulin. The curd formed is composed of both casein and whey
proteins, unlike the usual curd which is mainly casein. Ricotta’s textural properties also
differ from the other cheeses that makes use of rennet to form the curds, since it is loosely
aggregated and entraps air, giving the curd a relatively low density making it float on top
of the cheese vat, that is a property characteristic of ricotta cheese making. It is necessary
to ensure that the curd floats and do not sink with the proper control of the pH and the
level of the agitation. After collecting the curds, it is then allowed to drain in the
refrigerator, and afterwards, it is ready for consumption. It has a high moisture content
and fairly high final pH, and accordingly a short shelf life. Inclusion of the whey proteins
into the curd results in both a high protein yield and high protein quality for ricotta
cheese. To add sensory appeal, mild flavor, and nutritional value to foods, ricotta cheese
is used as an ingredient. Both part skim and whole milk versions of ricotta cheese provide
a source of calcium, phosphorus, zinc, riboflavin, vitamin A and vitamin B12 in each
serving. Ricotta cheese is a soft and creamy cheese with a light texture and mild, slightly
sweet flavor, with its color, commonly off white (University of Guelph’s Dairy Science
and Technology).
In the United States, ricotta is generally made with a combination of whey and
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(http://homecooking.about.com/cs/cheeseinformation/a/ricotta.htm). Adding skim milk
powder can also be done to further lower the price of production of ricotta, without
compromising the nutritional value of it, however, for quality’s sake, the technopreneur
This product will be produced with the assistance and support from Dairy
The Market
It is the technopreneur’s aim to tap the potential institutional buyers in Los Baños,
Laguna, that includes coffee shops, restaurants and hotels. However, the technopreneur is
not limited to selling to this segment alone. The product can also be sold to individuals
who are health conscious or those who are fond of cooking, particularly Italian dishes and
pastries. The scope of marketing is still limited to the Los Baños market since the
production is still being adjusted to the yield for this type of cheese production.
Product Value
The venture is going to provide the market with a high quality Ricotta Cheese
made from 100% cow’s milk, and is made to cater the institutional buyers as well as the
individual customers. This is a movement away from the traditional way of producing
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ricotta from whey because of the unavailability of the source of whey and its very low
Ricotta is a highly perishable product and has a safe assumption of seven days
shelf-life only, thus the products will be made fresh and delivered to the customers every
after the production process. This will ensure the quality of the product up to the end
consumers. In addition, the product has no preservatives added to ensure a product with
There is a high demand for raw milk as well as the processed milk in Los Baños,
Laguna due to the budding white cheese processors from the area as well as nearby towns
and its visitors. This causes uncertainty in the supply of milk for every processor, thus,
the technopreneur decided to situate her processing plant in Lamot 2, Calauan, Laguna
where there is a more stable supply of raw milk, the Katipunan ng Kooperatibang
Maggagatas, Ink. (KKMI) and Hacienda Macalauan known to be located in the area.
The technopreneur took advantage of the reduced cost of placing the production
area near the source of raw materials. Cow’s milk is a bulky raw material, and thus the
reason why the technopreneur decided to choose the location. This will be realized best
when the production is at full blast, having up to 50 litres of milk per production.
KKMI, the current primary source of the raw milk for ricotta production is having
a daily excess of supply from the farmers, which can be bought by walk-in customers,
and such is the set-up for the technopreneur at present. There is no fixed set of orders
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placed by the technopreneur, since there is no consistent production yet. But, it is
expected to be a better way to have a sure reservation for the supply of milk from the
Other raw materials like salt and anhydrous acetic acid are obtained from the
supermarket and Nikolai Enterprises respectively. The order for anhydrous citric acid is
needed to be placed one week before the production date so as to receive the ingredient
on time for production. This is because the management of Nikolai still has to purchase it
from Manila.
Business Model
Processin
g Area for
Ricotta
productio
n
Suppliers
BIOTECH (Toll
of
Process
Whey for
(KKMI)
ricotta
collection)
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Packagin
Institution
galatBuyers
DTRI
(Toll
Process)
Funding
End
Consumer
from
PCASTRD,
s
UPLB &
PCARRD-
DOST
Figure 2. Business Model of Ricotta Cheese (for business plan last summer 2010).
The technopreneur currently had a tie-up with a medium sized dairy products
distributor and cheese maker, the KKMI, to ensure the supply of the raw material for
ricotta production. This will then be transported to the production area to be acidified and
then cooked. In the view of low yield in the ricotta production, it can be a better way to
collect the ricotta with the use of an evaporator in BIOTECH, to reduce the losses in the
collection. For the packaging, it will be toll processed at DTRI, UPLB. The institutional
buyers including restaurants, hotels and pastry shops will then be the main market of the
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ricotta. There is a need for the market to be made ready prior to the production so that
they can at once receive the product made and avoid losses as well. It is a critical thing in
this venture since the product has a short shelf-life, about one to two weeks. In the long
run, ricotta will also be made available for individuals who are into preparing delicacies
that makes use of ricotta. The institutional buyers will then be the ones to add more value
It is a big challenge for this venture to enter the market since Ricotta will be
newly mass produced in the Los Baños market. Intense marketing should be applied to
make the product known to the market. Marketing in social networking sites are helpful
and costs less (APPENDIX 5&6). This is a good start based on the technopreneur’s
preliminary marketing done on May 2, 2010. Some friends showed interest on the new
product and would like to try it already. Also, a friend of the technopreneur was able to
taste the trial production on May 5, 2010. With this, she was able to let her officemates
know of the upcoming start up of the business, and thus means a sure market for the
technopreneur. Word of mouth may also be a good way of marketing. It is then critical to
maintain the quality of the product so as to ensure the chance of buying and repeat orders
of the market. The product’s quality is measured by its consistency and taste. Growth is
expected to follow as the quality of the product is standardized and thus gaining a lot of
The formal start-up occurred in July 2010 when the initial investment from the
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10,000php at first then 2,500php within the semester taking into consideration the need
for her to finish her studies this semester. They are willing to lend her the money also for
the fact that they are supporting her on her business ideas.
Market Definition
The main market for this product was the institutional buyers in Los Baños,
Laguna. These were the restaurants, pastry shops and other similar ventures that has
cooking or baking among its processes. It includes Bonitos, Micha’s Pastry Shop,
Faustina, Black & Brew, and Boston Cafe. They were seen to be the potential users of the
product since they were the ones who further add value to their products before selling it
to the end consumers. Given the ricotta is a health food, with lower fat and salt content
than that of the cottage cheese, its nearest resemblance, it is positioned together with the
Among institutional buyers, the main target market of the enterprise was the
restaurants and other shops that are into cooking high-end foods especially Italian dishes.
Among the end consumers, the main targets are those who are health conscious since this
Research Methodology
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Ricotta Cheese is a new product in the Los Baños market that is why there is a
need for an initial market study to know the acceptability of the product.
First, store check was done to know how the product is positioned in the market.
Results showed that ricotta is not available in the Los Baños supermarkets and groceries.
DTRI-UPLB, however, is producing a very small amount of ricotta, mainly due to the
very small yield of 1 to 3% every production if the main raw material used was whey
from manufacturing other types of cheeses like mozzarella and white cheese. Production
of ricotta utilizing cow’s milk is then considered for the improvement of production as
cheese’s stores, hotels and restaurants in Manila that the Hacienda Macalauan distribute
Competitor Analysis
The only direct competitor identified from the store check done, was Hacienda
Macalauan. It is a dairy farm and processing company found in Calauan, Laguna. Gatas
Tisoy is the brand mainly used for the product lines the Hacienda Macalauan has. This
company focuses on producing milk and milk products which are mainly produced for
Hacienda Macalauan offers milk products that are processed in its own plant
source, its raw milk from its own milking cows whose breed is Australian Freshian
Sahiwals. Among the product lines of the company are fresh milk, low fat milk, non-fat
milk, chocolate milk, white cheese, ricotta cheese, cottage cheese, low fat yoghurt, non-
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fat yoghurt, full cream yoghurt, flavoured yoghurt, sour cream, whipping cream and
liquid cream. Their ricotta cheese is packed in cups of 200grams or in 1 kilogram, and
costs 80pesos and 400pesos respectively, if bought by walk-in customers at their plant at
Calauan, Laguna. However, if the product is purchased at their distribution outlets, the
Hacienda Macalauan’s label for its products includes the company’s name and
logo. The logo is a picture of three Australian Freshian Sahiwals in a green pastureland
(Figure 3). The label in some products contains the weight or volume of the products and
the other products offered by the company. The expiration date for every item is always
included in the label to ensure the safe consumption of the products by the consumers.
Ricotta is one of their products and is produced only upon receiving orders from
the customers, due to the product’s very short shelf-life of one week, as compared to
ricotta cheese is available for walk-in customers in their main plant at Calauan, Laguna.
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Figure 3. Ricotta Cheese of Hacienda Macalauan
There are however many other competitors for Ricotta cheese. One direct
substitute for this product is the cottage cheese. Cottage cheese has the nearest
resemblance to Ricotta cheese in terms of physical characteristics. It also has the same
use and is also readily available in supermarkets under the brand name of Nestlé. The
two has almost the same use and users, thus Ricotta cheese, not being readily available in
supermarkets when needed, can be easily replaced by Cottage cheese. However, in terms
of health benefits, Ricotta cheese is said to have lesser salt and fat content than the
Aside from Cottage cheese, the other types of cheeses like processed cheese,
Parmesan, Mozzarella and Cheddar cheese are also substitute to the Ricotta cheese. These
can be also used as cheeses for pasta-based delicacies. They are also readily available in
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The technopreneur considered two components that highly affect the current
position of the ricotta cheese at present. These two were the price and the availability of
the product. Consumers highly value these two and find it the main reason to change
preferences. The availability is a critical thing for the cheeses since the product can be
Hacienda Macalauan’s ricotta cheese, being the direct competitor for Dairy
Land’s ricotta cheese has higher price when placed in distribution outlets and is less
available because the ricotta cheese they produce is only available in Manila distribution
outlets or at their plant at Calauan, Laguna. For the market of ricotta cheese in Los
Baños, Dairy Land’s ricotta cheese can be more affordable and available for use.
Figure 4. Product Space Map of Ricotta Cheese Brand based on Availability and
Price.
Market Size
The technopreneur started marketing the ricotta cheese to individual users. They
exhibited their eagerness with the product and told the technopreneur about their interest
to buy as soon as the product is available for sale. The technopreneur was able to
interview five individuals who have already used the product and a group of fifteen who
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The group of fifteen individuals were composed of mothers working in an office
in IRRI and young professionals working in Los Baños. They may have been attracted to
the new product they have heard, that is why they were willing to try it. With this
premise, the technopreneur bear in mind that these individuals’ first impression of the
product will last and will be the basis of their future demand for ricotta. Thus, the
production to occur in early October must be primed properly so as to have the first
For the group that has been using ricotta already, they are interested for the
product, given that they have knowledge of recipes to which the product can be used. The
group is composed of three professionals who have finished studying in courses related to
culinary arts while the other two learned about the product in a restaurant where they had
their practicum. The technopreneur learned from this group that a certain recipe that will
be prepared for around eight people, demands the use of one cup of ricotta cheese, which
was approximately amounting to 200grams per recipe. Also, the said group used ricotta
frequently, and with this, the technopreneur found a new target market for ricotta, those
Computing for the estimated demand, from this group of five individuals having
the demand for ricotta, there can be roughly 200 to 300 grams of ricotta to be used by
Upon conducting informant interview, the target market that was composed of a
group of coffee shops, restaurants and pastry shops in Los Baños, were found to be non-
users of ricotta cheese. They have heard about it, but they are not using it because of its
unavailability in the market. The technopreneur then tried to describe the product to them
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and told them the use of ricotta, but only one prospect institutional buyers showed
eagerness to try the product. The others, even though they are offering menus with which
The institutional buyers already have their set of recipes which they offer for sale
to their customers and this entails their preference for an existing brand. Introducing them
the ricotta cheese becomes difficult as they are already hesitant to try new ones, not
knowing what to use it for. This is the big challenge found by the technopreneur and will
then be the main focus of this venture since they will direct the progress of this venture.
The technopreneur, however, was not very discouraged with this response as she
plans to continue seeking for institutional buyers outside Los Baños, when the production
is more stable.
Market Strategy
It is important to have a sure market in this venture due to the short shelf-life of
ricotta. This will be made possible by going into a contract with the institutions and areas
for distribution. This will reduce spoilage of the product and ensure the continuous
processing of the product. It will be helpful to go into marketing in the social networking
sites as well. It will be a cheap but a possible source of other end users of the product.
Upon applying preliminary marketing strategy last summer on the social networking
sites, the technopreneur was able to gain about twenty individual buyers. As for the
30
institutional buyers, the technopreneur had difficulty as to convincing them to use ricotta
since they have been existing and preparing their menus for more than a year already and
has their fixed recipe already. Only one prospect institutional buyers showed eagerness to
This was seen to be a challenge to the technopreneur regarding how she will
convince these institutional buyers in utilizing the product. As a response to this she
prepared a brochure to be distributed to the other untapped institutional buyers, and a set
of recipes that customers can easily prepare using the ricotta cheese. In the brochure, the
technopreneur included the meaning of ricotta, its uses, its origin, and a “did you know?”
part telling a fact about cow’s milk. With these materials, the technopreneur believes that
there will be better knowledge of the product and this will give them the urge to try the
product and try the recipes on their own. This brochure can be passed on to other people
and can then be a medium of marketing to others as well. Posters will also be posted in
dairy products distributors’ areas so as to make the market aware of the product. Also, the
distributors of dairy products can also be asked if the technopreneur can sell ricotta
cheese along with their line of products as soon as the product can be sold to its target
market. The social networking sites are also means for the increase in awareness of the
product’s users. The technopreneur made a move already by utilizing Facebook as well as
Yahoo Mail in order to tap some of her friends who belong to the target market for the
product. This will further be used as the main marketing avenue as the number of
Competitive Strategy
31
It is known that the ricotta production has a low yield in its production. However,
the use of The National Institute of Molecular Biology and Biotechnology (BIOTECH)’s
evaporator may enhance the yield and thus increase the ricotta produced. This will then
sustain the market’s need for the product. Also, a tie-up with large cheese manufacturing
companies will aid the need for the whey as a raw material.
There is also an opportunity to learn the process of producing ricotta with the use
of milk combined with whey, in such a way that the venture will not be dependent on one
raw material alone. This may then result also to adding other sources of income, like
Competitive Advantage
Ricotta makes use of whey, the by-product of cheese making as its main raw
material. This made it a lot cheaper and easier to produce than other cheese products.
Ricotta can be produced and packaged within 12 hours, unlike that of the cream cheese
production which takes about two days of processing up to packaging. Also, starting-up a
ricotta cheese business requires less capital than that of the other types of cheeses. This is
Another advantage was the possibility to place the processing plant for the ricotta
near the source of its raw materials, thus reducing the costs on transporting whey.
Marketing
the product is new to majority of the Los Baños market. This was done due to lack of
32
physical facilities for distribution at the start-up of the business. However, plans for the
future include having a distribution outlet where the ricotta, along with other dairy
products that the technopreneur plans to produce as the start-up continues to improve.
The ricotta was packaged in plastic tubs which can contain 200grams each (Figure 4).
Social networking sites (Facebook, Plurk and Yahoomail) were also utilized as these
were cheaper, more accessible and easier way to connect with the product’s prospective
market. It also occurred that by word of mouth that some more are added to the market.
Market penetration was seen as the best strategy to be applied in marketing the
product because it is not that popular yet. The price of the product needs to be lower than
that of the existing ricotta cheese in the market. Hacienda Macalauan priced their ricotta
at 80pesos per 200gram tub for walk-in customers at their plant in Calauan, Laguna; but
sell it at 90 to 100 pesos on their distribution outlets. The technopreneur decided to set
her price at 80pesos per tub, 10pesos lower than its direct competitor. This pricing
strategy was employed only in the last production run, since there is confusion with the
prices of the direct competitor at the beginning of the study. Along with the pricing
the prospect market and future plans includes putting posters on dairy product
distributors’ outlets.
The product label (Figure 4) was conceptualized only at the end of September and
this was to replace the previous label used from June to August (Figure 5).
Recipes will be distributed to target market in order to create a demand for the
33
Figure 4. Current sample label for the ricotta cheese.
34
Product Development
Development Status
Ricotta production has only around 1% yield based on the trial production done by
the technopreneur at DTRI-UPLB. This issue of the ricotta production was dealt through
utilizing cow’s milk in producing ricotta, which eventually caused the increase in yield.
Further researches on how to standardize the production was being studied so that the
To ensure the product’s consistency in terms of the product quality, control areas in
the production area will be closely paid attention to and will be standardized.
and this will be the foundation of further improvements in the production processes. The
standardization of the activities in the production area will be best realized through
applying a line flow strategy. Since the venture only produces this type of cheese,
cheese that can produce the whey which was known to produce a better ricotta out of it.
35
This in a way, changes the focus of the business since the main product will be
mozzarella cheese. This is seen to be a more profitable one since the product was already
kown and there can be more users of this type of cheese. Also, the whey produced can be
On the other hand, using the ricotta made from cow’s milk into producing end-
products like cheesecakes, cannoli or other delicacies that uses ricotta, is the forward
integration. The ricotta adds to the mild taste of the product like any other cheeses,
however, the healthy side of ricotta makes the difference. Ricotta has less fat and salt
content unlike the other types. Doing forward integration, will reduce the spoilage of the
product and in a way create a new way to retrieve the capital from producing the ricotta.
Also, this will also help encourage the institutional buyers learn of the ways to utilize the
Financial Plans
Table 2.Cost of capital when producing ricotta at DTRI, UPLB.
36
Packaging (Toll Processed at
DTRI--200grams per tub) 5 150 750
TOTAL WORKING CAPITAL
PER MONTH 3360
for 1
mont for 1
h year
Total fixed capital @ 8%
depreciation per month 39 468
Total working capital per month 3360 40320
Total overhead costs 7700 92400
Total cost of production per 1109 13318
month 9 8
For 1
Mont For 1
h Year
SALES (150 tubs @ 150 pesos
each) 22500 270000
Less: Total Cost of Production 11099 133188
5% Loss(from sales) 1125 13500
GROSS INCOME 10276 123312
Percentage Mark-up= 45.67%
37
(capacity: 40L)
Cheese Cloth (per yard) 10 3 30
Weighing Scale 200 1 200
TOTAL FIXED COST 8030
Working Capital (for a month or 30-day period)
Rent(rate at Calauan,
Laguna as of May 7, 2010) 3500
Transportation 1000
Labor(2persons to work @
P100 per day) 5200
Advertising 250
Electricity 500
Water 300
TOTAL OVERHEAD COSTS 10750
for 1 for 1
month year
Total fixed capital @ 8%
depreciation per month 643 7716
Total working capital per
month 4110 49320
Total overhead costs 10750 129000
Total cost of production
per month 15503 186036
For 1 For 1
Month Year
SALES (150 tubs @ 170
pesos each) 25500 306000
38
Less: Total Cost of
Production 15503 186036
1% Loss(from sales) 255 3060
GROSS INCOME 9742 104664
Percentage Mark-up= 38.02%
The two financial statements above show the percentage mark-up in the
owned plant. The difference in the two values of mark-up is caused by the lack of fixed
capital investment in the production at DTRI, UPLB. It is also seen here that the losses
decreases in the owned plant as it is assumed that production and marketing is improved
and is given a lot of attention to. However, the low percentage mark-up can be forecasted
to increase in the future as the cost of the initial investment is being obtained after a
certain period. This will then be used as additional working capital to improve the
The costs of capital on two different scenarios computed above were based on the
estimates provided by Prof. Olive Emata last summer 2010, during the preparation of the
business plan. These, however, did not happen to the production runs done by the
technopreneur. It was because most of these estimates had over or under estimation.
Among the two choices of production areas, the technopreneur highly recommend
having an own plant in order to have a regular production processes. This venture
requires more flexible production activities. Also, this venture can be a part-time
business, thus, an owned plant can be a better place as it has the convenience one wants
to have.
39
The production’s break-even point, based on the production runs, is the
production utilizing between 15 to 20L of raw milk along with the 10% citric acid
coagulant.
*The above prepared financial statement is only for ricotta made of 100% whey.
**The financial statements for the ricotta cheese made out of whey are available at
APPENDIX 1.
40
It was in the Abm180 class of the technopreneur last Second Semester of S.Y.
2009-2010 when she got interested in attending a Short-Course Training last Summer
2010. The technopreneur became interested in the ricotta cheese production since the
proposal she made for ABM 180 and that which she was supposed to take in the regular
Special Problem under the course, was dealing with whey also. Also, Prof. Olivia Emata
strongly suggested the product as it was one of the products she has been developing at
DTRI-UPLB.
The training was held in the CEM Lecture Hall, a place that was very conducive
to awake creative minds and further on extract ideas for the business start-ups this 1st
semester.
The discussions by different technology developer and the CEM faculty members
offered a lot of important ideas so that the start-ups can be more realistic. The consultants
of each TLP helped a lot especially on the Technical Aspect to enhance the know-how of
The technopreneur came up with a business plan before the short-term course
ended and this was presented to a set of panellists who contributed constructive criticisms
One thing that encouraged the technopreneur to pursue this study was when Prof.
Emata stated that ricotta was one of the high-end cheeses that have the potential of being
highly valued product in the market as it was not yet produced in high volumes for the
Los Baños market. It was not popularly known in the Philippine market since there are
only a small number of producers who ventures into Ricotta production in the country
and along with that was the small number of consumers of this product. According to the
store check done, ricotta cheese was not sold in the groceries around Los Baños. Also,
41
market study has not been done on the area yet, thus, this study came up to have the start-
The AFNR Training last April 19-May 8, 2010 helped a lot in the technopreneur’s
formulation of ideas and concepts for the business start-up. The training became a
refreshing course especially for the basic functions of management wherein the business
42
start-up can effectively arise from. The speakers, who were the technology and
management experts at the same time, became a credible source of knowledge for
valuable inputs to the technopreneur’s mind and were source of strategies for the business
technopreneur learned about the production process of the ricotta. She asked help from
supposedly, but then turned out using cow’s milk, mainly due to the very low yield of
ricotta from whey. The change of raw material came about from the researches done
showing that the use of raw milk highly enhances the yield, without compromising the
chose to produce her product. The close supplier tie that the technopreneur had with its
main source of raw materials has been a very important component of the venture
especially in having a sure supply every time it was needed. Also, valuable suggestions
by the supplier regarding the start-up were also noted as important inputs to the
enterprise. Proximity to the supplier of the raw material was supposed to reduce the cost
of the production processes, however, it was not yet realized since there was a very
minimal number of production runs and the rent for the apartment in Calauan was not
maximized. The technopreneur still has to manage the financial aspect of the venture
more rigidly so as to have a consistent production and thus improve the profitability of
43
the business. The technopreneur also learned to deal with the people near the production
area. There was unexpected assistance from the immediate community that made the first
In the first week of the production, that is 2nd week of July, the technopreneur
went to Calauan to look for a space for rent, wherein she can establish the production
plant of ricotta production. Searching for a space available in a strange place was
difficult, but proper dealing with the people around made it a good experience for the
technopreneur. She came to deal with many individuals who helped her find a place
The technopreneur finally found a house that costs 1800pesos per month through
the help of a resident of Lamot 2, Calauan, Laguna, wherein the KKMI was situated. The
people around the apartment were not difficult to deal with; thus, it became easier for the
technopreneur to start production on her 3rd day in the area. Hiring a labourer was an
impossible idea yet due to lack of capital so the technopreneur tried to do the production
alone, but then, the residents in the area, upon knowing that the technopreneur was doing
the enterprise for the completion of her academic requirements, offered a lot of help
To have an idea as to how the market size for the product will be, the
the area of study. Among the two groups of informant, the institutional buyers were more
difficult to deal with. It seemed that this group was more attached to their current ways of
preparing foods, and were not easy to encourage regarding the use of the ricotta cheese.
44
The technopreneur had lack of consultation time with Prof. Emata during July to
The technopreneur then resorted to sending electronic mails of the survey forms
to some friends who underwent culinary studies as well as those who responded to have
used ricotta, when the technopreneur was still starting with the study. Also, the
technopreneur searched for users of ricotta from other countries through the use of
networking site like Facebook and search engines like Google. Among the respondents
gained was William Roger, who was from the United States. He was using ricotta for a
long time already and was very familiar to the product. He even thought the
technopreneur of easier ways to conduct the production of ricotta, some of which were
not mentioned by Prof. Emata. Also, he suggested some sites that were very helpful as to
searching for recipes using ricotta which were easy to follow. These were used in the
recipes prepared by the technopreneur, which she planned to suggest to her current and
restaurant in Sweden, who added some more input to the technopreneur’s knowledge
about the products’ uses. He even encouraged the technopreneur to pursue the venture
even though he also knew the challenges faced by it, including the low yield in the
production process.
Funding the enterprise seems to be the most critical part of the venture because
this delayed the production of ricotta for almost a month. The supposed production in 2nd
week of June turned out to be on the first week of July. The expected funding from
45
Philippine Council for Advanced Science and Technology Research and Development
(PCASTRD) for the project did not seem to be available when it was needed, thus the
urge of the want to graduate this first semester forced the technopreneur to loan her
capital from her parents who were both public school teachers, and were able to loan
from the Government Service Insurance System (GSIS). The amount of 10,000pesos was
received on the third week of June and with this amount, the technopreneur purchased all
the needed fixed investments. To assure that the purchasing was worthwhile, the
technopreneur did a lot of canvassing as to which ones will cost her the least, considering
the quality of the materials. She eventually found the lowest price items needed in the
start-up in some stores within Los Baños. Upon completing the needed materials, she
The production was then stopped due to the financial constraints, and the
technopreneur tend to spend on other priorities including an educational trip in one of her
major subjects. This led to a stop in the progress of the start-up. The technopreneur
waited for the financial support from PCASTRD. However, it did not arrive until the first
week of October. This resulted to another batch of borrowed capital from the
After months of waiting for the financial support, the first cash advance did arrive
on the first week of October and a production run will still be done after some more
consultation with Prof. Emata, who just arrived in the country on the last week of
Production Runs
46
Below are the lists of ingredients, utensils/instrument/other materials and
procedures that were needed for the production of Ricotta Cheese as directed by Prof.
Ingredients:
Utensils/Instruments/Other materials:
• 1 stainless laddle
• 2 stainless strainers
• Cheese cloth
• 1 laboratory thermometer
• 1 weighing scale
• 1 LPG
Procedure:
The technopreneur utilized the home-based way of producing the ricotta cheese.
This entails the use of raw/whole milk, citric acid/apple cider vinegar/lemon juice/rennet
47
The technopreneur preferred the use of the 10% citric acid solution as this was
cheaper and easier to prepare than the other coagulants. The 10L raw milk was first put in
a stainless casserole and then heated up to 93-95°C. One cup of 10% citric acid solution
was then poured in and stirred slowly for 10-20seconds. Small flakes formed in the milk
and the separation of small curds occurred after a few minutes. For 10 minutes, the curds
were allowed to rise and form from the milk. Afterwards, a ladle was used to collect the
curds and was transferred to a colander lined with a cheese cloth. Slowly, the curds will
drain its whey up to the desired consistency from 15 minutes to several hours.
The technopreneur drained the curds quick when she wants it to be fresh and light
in appearance. On the other hand, she drained it on an extended period if she wants to
have a rich, dense and buttery texture in it. After wards, she placed the drained curds in
After the desired time of draining, the technopreneur finally packed the cheese in
tubs which will hold 200g each. The ricotta was safe to be used within 10 days.
In the process, some critical points that should be paid attention closely are the
heating of milk, adding of the coagulant, collecting of the curds and the draining prior to
chilling. To ensure the safety of the product in the following areas, there was a separate
area for each step and proper handling procedures are applied. This was made to ensure
the quality of the product and the safety of the consumers of the product.
48
Figure 6. The Cow’s Milk transferred to the casserole for heating.
Figure 7. Checking the temperature while waiting for the milk to boil.
49
Figure 9. Putting the medium for coagulating ricotta
50
Figure 12. Ricotta draining on a cheese cloth.
51
Figure14. Salt being mixed to the ricotta thoroughly.
52
The following table is the summary of the production runs done by the
53
Table 4. Summary of Production Runs.
Assumed
Revenue
Production Yield @ 80Php/
Ingredients Gain Loss Comments/Problems
Cost (g) 200g tub
(Php)
54
increase the ricotta
produced.
1st 0 0
2nd 0 0
3rd 84 672
4th 84.30 822
5th 187.5 468.75
6th 191.33 502.25
7th 64.65 468.75
The first production occurred during the sample processing of mozzarella. The
process made use of 20Liters of milk and yielded about 10 to 15Liters of whey. These
were then used to produce ricotta. The ricotta produced was only 1% of the raw material.
This was given as sample to the employees at International Rice Research Institute
(IRRI). Their response gave the technopreneur encouragement because they liked the
product and mentioned that they will buy if the product will be marketed to them.
55
However, the technopreneur stopped for almost two weeks in producing ricotta to
spend the rest of her summer vacation in Mindoro, after the short-course training. As the
semester started, she was again given a chance to try producing ricotta. This time, the
15Liter whey was from the production of kesong puti. The yield was a bit higher, 1.5% of
the raw material. This was again given as sample to a prospective institutional buyer, but
there was no response obtained from them. Thus, the technopreneur did not know how
The technopreneur’s first and second production was made of pure whey, the first
with that from mozzarella production and the second from kesong puti. It is on the third
to the seventh production that raw milk and whole milk was used.
During the first production, when whey was used, the ones who tested the sample
liked the mild texture and the slightly salty taste of it.
During the third production run, the technopreneur changed the raw material to
cow’s milk. The production using 20Liters cow’s milk aimed to increase the yield and to
know how the product will be compared to the first production. The technopreneur then
told the employees in IRRI that she was able to produce ricotta again. Mistakenly, the
technopreneur was not able to consider that the ricotta she had just produced was from a
different raw material and the outcome might be different. Eventually, the provided
samples were not of the same quality with the sample. The employees said tthat the
ricotta tasted less salty and the consistency was more firm, thus the attention of the
were not met, but then, the customers, did not allow it to happen, but then encouraged the
technopreneur by telling that they understand the situation and believe that the product
56
will still improve. With this experience, the technopreneur learned that the product needs
to have consistent high quality, and this should be the top competitive priority of the
The fourth production run was done last July 26, wherein surprisingly, the
production produced ricotta was about 13% as opposed to the expected amount which
was only about 8 to 10%. The ricotta produced was now adjusted to the customers’
preference and a sample was again provided to the employees of IRRI before the
technopreneur sold it to them. Eventually, they liked it and again they bought ricotta.
The production runs stopped for less than a month due to lack of capital and
busyness of the technopreneur with her other subjects. She resumed after her parents,
Again, the technopreneur produced for the 6th time. This time, the technopreneur
came on a Saturday morning, at about 11am at Calauan, Laguna. She immediately went
to KKMI, to purchase 10Liters of raw milk, but was surprised to know that the milk was
out of stock. As a result, since the technopreneur did not want to waste her stay at
Calauan, she decided to utilize buy 6Liters of whole milk. Also, there was no available
anhydrous citric acid, thus, the technopreneur resorted to using the apple cider vinegar.
The technopreneur herself did not want the outcome of the production due to the strong
odor of the apple cider vinegar. She then decided to wash the curds produced with
distilled water so as to reduce the odor and after-taste caused by the vinegar. This was
one of the instructions by Prof. Emata, on how to get rid of the after-tastes of cheeses if
57
The main material used in the production is the main reason for the variations in
yield. When whey is used, the yield is only around 1-3%, while the raw cow’s milk yields
Also, another reason for the change in yield is the coagulant used. The
technopreneur tried using four different coagulants: 10% citric acid solution, apple cider
vinegar, lemon juice and rennet. The amount of each coagulant varies with the number of
liters of raw milk used. Utilizing less than the needed amount causes the yield to be lesser
as well. This affects the production runs done by the technopreneur since the process is
not standard yet. It is somehow seen that the yield of ricotta from the production runs are
the ones who continued with the cheese processing are both on cream cheese production
and thus making it difficult for the technopreneur to source the whey needed. This then
resulted to the technopreneur to utilize the cow’s milk to make the production more
profitable.
58
Marketing/ Selling activities
Introducing the ricotta cheese to the market is a very important step to do before
the marketing takes place. Providing samples to prospect customers is one way of telling
about the product to them. It is important for the technopreneur also to know the
technicalities of the product, like how it is used for food preparation, or even the
answer the questions of the customers reduces the possibility of repeat usage of the
product. Also, the consistency of the quality of the product is also needed to be
Utilization of the technology of social networking sites was applied very well to
the marketing/selling activities of products like ricotta cheese. Aside from being a fast
The technopreneur found it very important to obtain orders first, before the
production, knowing that ricotta cheese was a highly perishable product. This will lessen
the spoilage of the product and will entail more efficient production since there was
already an estimate as to how much will be needed by the market. However, adverse
consequence may be that the demand of others may arrive when there is no inventory
available. This will still result to a negative stigma of a small business start-up and thus
Marketing to institutional buyers was still seen as the most profitable way of
venturing to this enterprise, even though it wasn’t realized yet, since they will have bulk
orders and were capable of sustaining the orders. The technopreneur came up with a way
59
to induce consumption of the ricotta cheese, and this was by providing a set of recipes
that makes use of ricotta and these recipes were easy to follow. Also, brochures would be
distributed to individuals and institutional buyers so that they will know what ricotta is.
The brochure would contain the meaning of ricotta, its uses, its origin, and a “did you
know?” part telling a fact about cow’s milk. With these materials, the technopreneur
believed that there would be better knowledge of the product and this would give them
the urge to try the product and try the recipes on their own. This brochure can be passed
Sample recipes can be also given in order to create a market for the product
(APPENDIX 8).
60
Reconfiguring the Product and the Business Model
Traditionally, ricotta was made with whey, a by-product from cheese making, but
since this raw material was not usually available, thus, the technopreneur preferred to use
Upon receiving the financial support from PCASTRD, the technopreneur started
her production processes at once. The main source of the raw milk was Katipunan ng
technopreneur rented a place in the area and this served as the production area. The
processing of ricotta up to the point it was packed was done in the kitchen-type apartment
and afterwards, brought to Los Baños, directly to the institutional buyers or in the
refrigerator of Sulyaw Canteen at Women’s Residence Hall which was rented by the
The institutional buyers were then expected to use their acquired ricotta as add-on
61
Suppliers
Home- of
Raw
based
Milk
(100% cow’s)
processing
KKMI
(KKMI)
Institutiona
l Buyers
-Pastry Shops
- Restaurants
- Hotels
End
Consumers
Funding
from
PCASTRD,
UPLB &
PCARRD-
DOST
62
Figure 18. Business Model for Ricotta Cheese
Marketing
Ricotta production was seen in the early part of the start-up as a highly profitable
venture, being a new product in the market. But as the start-up progresses, problems
arise. The comment received from the employees of IRRI on how different the latter
ricotta tasted from the sample provided showed the inefficiency of the product at this
early stage of the business. This problem must not be taken easily because this may
63
happen again in the future if not dealt with properly. As an initial response of the
technopreneur, returning the payment of the customers may really be a solution if the
customers were already having a close tie with the business; however, this is not the case
all the time. New customers will arrive and there may be different responses as to how
the problems will arise. The technopreneur needs to be keener in managing the start-up.
Ricotta cheese being a new product in the market and a highly perishable one must really
be paid with much attention and must have a standardized process. Changing of raw
materials may be the weakness of the start-up causing it to stop from progressing at
present. The solution for the problem faced by this business must be the standardization
of the ricotta production. The technopreneur knew that when a product shows consistent
high quality, every other improvement will follow including the increase of the product’s
market.
Production
The line flow strategy was the exhibited type of flow strategy in this business as
the products need to be standardized and demand may become high and as the product
became known to the market. This is one of the targets of this product, to be known not
only in Los Baños, nut also in the nearby cities and towns. The five production runs
showed different cases that may be avoided by many other aspiring technopreneurs. This
serves as a reminder for the technopreneur that not all businesses where you can use free
64
resources are very profitable. The use of whey may cause the very slow growth of the
venture, thus, research and development must be continually employed in the product
innovation of the business start-up. The technopreneur must not have the feel of
insecurity with respect to one’s own products or offerings because this will further pull
the business down. As a manager of a business, one must believe with what he offers and
Personnel
The type of this business will be a sole proprietorship and this means that the
future of the venture was in the technopreneur’s hands. The ricotta production was
observed to be a very laborious work, that’s why there was a need for hiring workers who
can be of help in the production. The production usually takes about 6 to 7 hours when
done alone, and there was more spillage. On the other hand, when one worker was added,
there can be a more efficient process as time of production will be shorten and the
spillage will be minimized. The technopreneur already tried doing this and it really
In one of the activities in the short term course, the technopreneur was able to
planning and monitoring. On the other hand, her weaknesses involve opportunity seeking,
demand for quality and efficiency, goal setting and persuasion and networking.
She then came up realizing that she used to take advantage of her personal
competencies, then focused and made improvements on how she dealt with her
weaknesses.
65
Finance
As for the financial aspect, the problems were mainly for the lack of working
capital most of the time. This can now be seen as a solved problem since the
PCASTRD’s funding already arrived. This however, does not simply imply that there
will be no other problems to arise. The technopreneur must still be a wise spender of
money in order to make the venture worthwhile. The capital must be put to good use and
the returns must be effectively used to earn more. Expenses may not be avoided but wise
There are a lot of problems met by the technopreneur in the start-up activities.
Starting from the financing aspect of the business, the project experience delays and the
enterprise just started producing ricotta for marketing on the second week of July. This is
due to the delay of the expected financial support as well as the other concerns of the
technopreneur with regards to her other academic loads this semester. The technopreneur
then asked her parent’s help on the financial deficiencies of the enterprise.
66
In the production function of the enterprise, the problem experienced is the very
low yield of ricotta when 100% whey is used as the main raw material. This causes very
low production and further on, a costly process for the low yielding process, not efficient
enough to be profitable. Thus, the technopreneur went into producing ricotta using cow’s
milk, and the production results in a significant increase in the yield. This particular
increase makes it possible for the enterprise to earn and be a profitable business.
Another problem that arises in the duration of the start-up is the very slow
response from the ones who take samples of the product. This may not be a big deal
though because once they approved the product, especially the individual customers; they
will be the ones who will help in the marketing of the product, simply through word-of –
mouth. The pricing strategy has encountered a lot of problems in the duration of the study
due to conflicting prices that the technopreneur learned about. However, it has been
decided that what will be implemented here is the market penetration pricing, by giving a
lower priced ricotta cheese to the market while intensely promoting the product to
prospective markets, especially the institutional buyers including restaurants, hotels and
pastry shops. In the long run, the product is expected to be known in a wider geographical
area and more market will be tapped for further commercialization of the product.
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KNOWLEDGE, SKILLS, VALUES/ WORK ETHICS, AND INSIGHTS GAINED/
DEVELOPED FROM THE STUDENT’S AFNR PROJECT AND START-UP
EXPERIENCES & IDENTIFICATION OF THE PECULIARITIES OF
TECHNOLOGY-BASED BUSINESSES
A lot of business concepts are being refreshed in the technopreneur’s mind as she
decides on every move she make in the enterprise start-up. The moves involves monetary
values thus, it is a good training to the technopreneurs in preparation for the future
expansions of the enterprises when there are bigger cash flows to deal with. The first
It is not the usual flow of business when one deals with a technopreneurial venture. This
is so, because of the technicalities that a technopreneur needs to learn about the product
68
he offers and not merely buying or selling of the product. There is also a need for good
rapport with the technology experts, making sure that there is good communication
between the parties. There should also be a continuous research and development for the
With regards to the type of product being marketed, a new product does not
always mean a good profit. Without proper marketing or advertising efforts, a valuable
product will become useless. There should always be a ready market that can purchase
the goods especially in the case of ricotta, when the product is highly perishable. Another
important thing to keep in mind is the consistent quality a product should have.
Inconsistencies will lead to failures in marketing and further on, failure in the whole
business as well.
It is also always necessary to know who your competitors are. This thing in mind
can be an effective way to be on your foot for regular improvement in the enterprise. If
the product will just stay with what it is for a very long time, there is a possibility that the
other companies will overtake the enterprise’s efforts. In the price competitions for
example, one might reduce his costs. This is not always equal to a large profit. There are
times that the return on investment might be of big amount but if all are receivables, the
enterprise is still highly affected. An enterprise should be liquid to some extent in order to
function well.
other people’s innovation. However, there will be experienced difficulties as to how the
product will be introduced to the market without the technopreneur knowing about it. It is
a must for a technopreneur to master every detail about his product because this way, he
will be more confident with the use of his products and thus attracting more customers to
69
buy these products. Also, as a technopreneur, one must not just be happy with their
current situation because technology easily wears out, and without the desire for
improvement, the business will experience slowing down with its growth and may even
in technopreneurs, just like how other types of entrepreneurs need it. Resorting to
copying what others are doing may be the easiest way to do, but being innovative and
creative can further bring a technopreneur to places he may not have imagined.
can further build up one’s confidence and improve the future response that a
how a technopreneur will avoid similar situations, doing it in a better way and also
strengthening one’s decision making skills by facing a lot of choices, learning from
Being your own boss, in an entrepreneurial environment, might not always mean
that you can decide when you will start your work, or even end it. As for the last
production run experienced by the technopreneur, entering into this business, one must
need to properly deal with everyone involved in the business. For example was the
supplier relationship that the technopreneur has with KKMI. It is not an excuse for her
that she was from Los Baños, for her supplier to reserve for her the milk needed for
ricotta production. Every technopreneur must really have the discipline in order to attain
the goals they have set for their business. Lack of discipline may lead to extra expenses,
maybe for paying tax, this may mean extra fine. To avoid such, there must not be any
self-centered mindset that works in the business. Everyone has equal rights, and without
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properly abiding with the rules may really lead someone out of the game, gaining
nothing.
The technopreneur still has a lot to learn on the technical side of the ricotta
production. The yield has always been changing and thus, adjusting to the yield will form
a standardized product that will ensure the consistent quality of the product. Good rapport
with the current and future customers is expected to enhance the market and will then let
There may be a case that the ricotta will not have consumers, thus, forward
integration can be done. This will be on learning how to cook or the other utilization of
the cheese that will create wealth. For backward integration, it may be possible to
produce other types of cheeses that are profitable and viable in the market and still make
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In the case that the technopreneur is already making use of the cow’s milk in the
manufacturing of the ricotta, the whey that will be available in the process can still be
made into ricotta and thus reducing wastage of the resources in the enterprise.
researcher of this study. The commercialization of ricotta cheese still needs to be studied
thoroughly because of the lack of market that will sustain its current situation. Based on
the start-up of this enterprise, ricotta cheese still has to have its established market. The
venture may look good and very profitable, but lacking proper management, the
enterprise won’t be able to take advantage of the budding market for this product. Thus,
the technopreneur really needs to be very wise in the decisions to make as to how the
giving lower price to the product than the ricotta cheese currently available in the market.
There may also be an immediate need to add a worker in the manufacturing process since
the production is gaining economies of scale when done by two or more persons. Seven
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hours of work for one person turns out to be a 4-hour work when there is a worker added.
In the long run, this increase in the workforce may lead to increase in the profitability of
the venture. This business enterprise does not only bring wealth to a person but also
A consumer and market survey done showed that the product was more attractive
to the individual buyers since they are more flexible as to deciding on what they will be
cooking for a day, unlike the institutional buyers who already are faced with their
existing set of food preparations and other delicacies. It is learned however that these
institutional buyers may be tapped using intense marketing, that which will introduce
them to the ways of utilizing ricotta with which they can benefit from. Brochures and
recipes that can help them know about the product and at the same time help the
technopreneur improve with the venture given their suggestions and criticisms. The
pricing strategy to be employed will give lower price that is 80pesos per 200gram tubs of
ricotta and there will be market penetration employed by producing the ricotta cheese
made of cow’s milk and eventually bring it to the different segments of the market.
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RECOMMENDATIONS
deals with technology based businesses in UPLB. For students who are inclined to taking
risks and are good in decision making and still would like to improve, this is an excellent
outlet of such skills due to the hands-on training and not only an observing type of
experience for them. This will also enhance their management skills as they will be
applying the lessons they learned from the four year stay they had in the university. Also,
they had an advantage on the other graduating students since the technopreneurship study
may be continuous process even after graduation. Unemployment will not be an issue
anymore since a student will have his own business and he still has the chance to be
innovative and further create businesses that will complement the one he started. This
study is also an avenue for the student to give gratitude to the university and help in the
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improvement of the technologies especially in the marketing area where the common
The current production processes was having no problems with its source of raw
materials, KKMI. The company has continuous supply of raw milk and can be easily
purchased providing one has his/her own gallon container for it. The technopreneur used
her own container which she used to transport the milk from the company to the
manufacturing area.
This venture highly requires a consistent quality as it targets the high-end market.
Thus, in order to have the product that will be highly recognizable with its high quality,
the production processes needs to be standardized along with its amount of ingredients
The experiences I learned from this experience are a really big help especially in
my management skills. There may be a possibility that this study may fail but the
learning I will gain from these experiences will further build my personality and my
attitude towards facing risk and can be my foundation in facing the real world after
graduation. It is not an easy task to work on an enterprise start-up but the knowledge
gained from these are more than enough to improve the way I will face similar challenges
in the future. This study changes my outlook in life. Going into business is not mainly
individual in creating a need, meeting those needs and earning from catering to those
needs. The lessons I learned from the other management subjects I took will not be of any
75
value if I will just keep them in my head. The technopreneurial study is an avenue where
I was able to release my abilities and at the same time learn from my mistakes.
The business world is not a vault of money wherein one can just enter and get
what he wanted. Instead, it is like a land ready to be cultivated, maybe at times, full of
weeds needed to be cleared in order for one to gain wealth. Industriousness and creativity
are some of the investments one must have in order to attain the objectives he has set for
his future.
The financial assistance from the Department and the program may not be
available in the future, thus, the student or other technopreneurs must be resourceful
enough to find their own sources may it be boot strapping, lending from the bank or
borrowing from relatives and friends. Also, one should learn to prepare his/her own
money through working on simple jobs that can help in the financial requirements of teh
start-up. The technopreneur did her own fund raising activities through tutoring a Grade 2
student and earning a considerable amount from it. The venture will not be successful
even if one has the resources needed. Perseverance and innovativeness is needed to let
Together with other students of the AFNR Training, the technopreneur of this
study is very thankful for the opportunity of being one of the recipients of the free
training and well-guided business start-up. This can be the stepping stone for the students
who will enter the business world. Having the first-hand experience of conducting a start-
up is one of the most valuable lessons one can learn in this university.
76
This should be continued to the next batches of Management students and if
allowable, this may be included in the curriculum as it contributes a lot to the learning
assistance that the students can use given they are still lacking the capital needed in the
start-ups.
ABM Curriculum
course training in the required subjects for the students. It is a good source of compressed
yet very important management concepts being discussed in the lessons and are directly
applied to the real situations of an existing business. This will give a better understanding
of the management concepts as well as the high experiential learning as students are
being subjected to the real problems and are demanded to be independent thinkers. With
these, the graduates of Agribusiness Management can be more competitive when faced
Technologies in UPLB are ones that are very rare to find anywhere in the country.
very promising venture when given with proper attention. Many promising technologies
like Biospark Trichoderma, Bio-N, VCO and other products can be invested upon and
77
helped in the marketing area of its enterprise. Proper allocation of resources is needed; as
well as enough investment can be utilized well if there will be enough resources for these
arising technologies. Stakeholders should learn to seek for the promising technologies
and further on improve its marketability so as to create wealth from such technologies.
REFERENCES
Garin, B. (2005) A Case Study of a Dairy Farm and Processing Company : Hacienda
Macalauan Inc.. Unpublished BS Thesis, University of the Philippines Los Baños
Lopez, M. (2005) Business Plan for the Expansion of the Philippine Carabao Center
Processing Plant from 200Liters to 500Liter-Capacity in General Trias Cavite.
Unpublished BS Thesis, University of the Philippines Los Baños
Nash, S. (2008) Business Analysis of the Animal and Dairy Sciences Cluster Dairy
Processing Plant and Dairy Bar. Unpublished BS Thesis, University of the
Philippines Los Baños
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Ricotta Cheese-- http://www.cooks.com/rec/search/0,1-0,ricotta_cheese,FF.html.
Accessed on October 3, 2010
APPENDIX
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Appendix 1
Manufacturing Overhead:
Packaging Materials 3(200g) &
200g packs=5pesos; 100gram 11(100g) 37
packs=2pesos
2 pesos per label 14 packs 28
Transportation 4rides 60
TOTAL 125.00
COGS 775.00
80
Beginning --------
Inventory
Total goods 775.00
available for sale
Appendix 2
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Appendix 3
Good morning/afternoon!
Part I.
[ ] Yes [ ] No
[ ] Yes [ ] No
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4.1 If no, when and where have you tasted it?
_______________________________
[ ] supermarket [ ] individual
[ ] grocery store [ ] others, pls. specify:
_______________
[ ] 50g [ ] 200g
[ ] 100g [ ] others, pls. specify:
_______________
[ ] 150g
10. How much ricotta cheese do you use per type of food?
______________________________
11. When was the last time you use ricotta cheese?
In the list below, check which general characteristic of ricotta cheese you consider when
buying:
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[ ] price [ ] availability
[ ] packaging [ ] brand
Below is price scale for the Ricotta Cheese. Please answer the following
questions using the scale.
Demographic Profile.
Name:
Address:
Province:
Civil Status:
Age:
Monthly Income/Allowance:
Educational Attainment/ Level:
Family Size:
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Appendix 4
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Mocha Ricotta Tiramisu
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Cherries with Ricotta Cheese and Toasted Almonds
Lasagna
87
Manicotti
Ravioli
Appendix 5
88
Hi!
Combined with eggs and cooked grains, then baked firm, ricotta is also a
main ingredient in Naples' pastiera, one of Italy's many "Easter pies" .
Regional variations may be sweet or savory.
Source: http://en.wikipedia.org/wiki/Ricotta#Common_culinary_uses
--Carmel Eje :)
89
Responses:
1. Hi Carmel,
Really? Marami kami dito sa office who would like to buy ricotta cheese. Just tell
me when the cheese is available.
Always,
Tita Susan
2. ey carmel!
awesome to hear from you. i'm pretty sure conan will have great use for it.
Rom Saplaco
Appendix 6
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William Audette October 1 at 6:41am Report
Wow, that is quite the list.
1. What types of food do you put in ricotta cheese?
A: We can put a few seasonings, (i.e. salt, pepper, olive oi, and lemon juice) in the
cheese and eat it fresh like with crackers or raw vegetables. Seasoned grilled
vegetables tossed lightly with similar seasonings is also good. Fresh Ricotta
Cheese generally has a good flavor that is best eaten with lightly seasoned
accompaniments so as to enjoy the flavor of the cheese. Homemade cheese is
more flavorful than store bought by far. It is also more versatile.
Typically though we do not put food into ricotta cheese but build food around it.
Typically we'll stuff large noodles such as manicotti or Cannelloni
http://bit.ly/ajrSJP with this cheese for a tasty main dish. Lasagna is also a popular
dish made with this simple to make cheese.
William...
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William Audette October 1 at 3:12pm Report
Here are some easy recipes. Note that milk in America in not sweetened with sugar when
purchased from the store.
http://www.italianfoodforever.com/iff2008/index.php?
option=com_content&view=article&id=679%3Aricottacheese&catid=68%3Adebsblog&Itemid=
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www.italianfoodforever.com
Share
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Appendix 7
Manufacturing Overhead
Total Cost
Price Required (Php)
Toll Processing Fee Php 0/ L 20L 0
TOTAL MANUFACTURING
OVERHEAD 0
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Manufacturing Overhead
Total Cost
Price Required (Php)
Toll Processing Fee Php 0/ L 30L 0
TOTAL MANUFACTURING
OVERHEAD 0
Direct Materials, Indirect Materials and Manufacturing Overhead on the 1st and 2nd
Home-based Production Run
Cow’s Milk-based Ricotta Cheese
Volume of Production: 15 L
Manufacturing Overhead
Total Cost
(Php)
Gas 100
Fare to Junction
jeepney 6
Fare to Calauan
jeepney 15
Fare to Lamot2
Tricycle 8
Fare to Los Banos
jeepney 23
Fare to Women’s Dorm
jeepney 8
TOTAL MANUFACTURING
OVERHEAD 160
Direct Materials, Indirect Materials and Manufacturing Overhead on the 3rd Home-
based Production Run
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Whole Cow’s Milk-based Ricotta Cheese
Volume of Production: 6 L
Manufacturing Overhead
Total Cost
(Php)
Gas 100
Fare to Junction
jeepney 6
Fare to Calauan
jeepney 15
Fare to Lamot2
Tricycle 8
Fare to Los Banos
jeepney 23
Fare to Women’s Dorm
jeepney 8
TOTAL MANUFACTURING
OVERHEAD 160
Direct Materials, Indirect Materials and Manufacturing Overhead on the 4th Home-
based Production Run
95
Whole Cow’s Milk-based Ricotta Cheese
Volume of Production: 5 L
Manufacturing Overhead
Total Cost
(Php)
Gas 100
Fare to Junction
jeepney 6
Fare to Calauan
jeepney 15
Fare to Lamot2
Tricycle 8
Fare to Los Banos
jeepney 23
Fare to Women’s Dorm
jeepney 8
TOTAL MANUFACTURING
OVERHEAD 160
Direct Materials, Indirect Materials and Manufacturing Overhead on the 5th Home-
based Production Run
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Direct and Indirect Materials
Total Cost
Price Required (Php)
Raw Cow's Milk Php32/ L 10L 320
Salt Php 10 / 200g 5g 0.25
Animal Rennet Php22000/kg 1g 22
Miscellaneous
Zonrox (Hypochlorite) Php 10 / bottle 1 bottle 10
Dishwashing Liquid Php 12 / sachet 1 sachet 12
TOTAL DIRECT AND INDIRECT
MATERIALS COST 308.75
Manufacturing Overhead
Total Cost
(Php)
Gas 100
Fare to Junction
jeepney 6
Fare to Calauan
jeepney 15
Fare to Lamot2
Tricycle 8
Fare to Los Banos
jeepney 23
Fare to Women’s Dorm
jeepney 8
TOTAL MANUFACTURING
OVERHEAD 160
Appendix 8
RICOTTA CHEESE RECIPES
Breakfast Blueberry Ricotta Pancakes
Ingredients
6 tablespoons flour, all-purpose
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1/2 cup pastry flour, whole wheat
1 teaspoon baking powder
1/4 teaspoon baking soda
1/2 teaspoon nutmeg ground
1 teaspoon sugar or honey
3/4 cup ricotta cheese low-fat
2 large eggs or you can 1 large egg and 1 large egg white
1/2 cup buttermilk, low-fat or non-fat
1 tablespoon lemon juice
1 teaspoon lemon zest freshly grated
2 teaspoons olive oil divided, or canola oil
3/4 cup blueberries fresh or frozen, not thawed
Directions
Sift all-purpose flour, wheat flour, sugar, baking powder, baking soda and nutmeg in a
small bowl.
Mix well ricotta, egg, buttermilk, lemon juice and zest in a large bowl until smooth. Stir
the dry ingredients into the wet ingredients until just combined.
Brush a large nonstick skillet with 1/2 teaspoon oil or coated with cooking spray and
place over medium heat until hot.
Cook 2 pancakes at one time, using a generous 1/4 cup of batter for each pancake, pour
the batter for 2 pancakes into the pan, sprinkle blueberries on each pancake and cook
until the edges are dry and bubbles begin to form, about 2 minutes.
Flip the pancakes and cook until golden brown, about 2 minutes more. Repeat with the
remaining oil, batter and berries, adjusting the heat as necessary to prevent burning.
Serve these light pancakes with Chunky Blueberry Sauce, maple syrup or honey.
Sprinkling the berries on top of the cooking pancakes ensures even distribution.
Keep finished pancakes warm in a 200°F oven, if desired, while cooking the rest.
Baked Tomato and Cheese Shells
Ingredients
40
grams pasta shells, jumbo
0
50
grams ricotta cheese about 2 1/2 cups, prefer low-fat
0
parmesan, parmigiano-reggiano cheese,
1/2 cup
grated
1 cup mozzarella cheese shredded, prefer low-fat
1 large egg
80
grams tomatoes, canned 2 cans, chopped
0
25
grams cherry tomatoes halved
0
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3 cloves garlic chopped and sliced
vegetable, or you can use chicken
1/2 cup stock
stock
1 x salt and black pepper to taste
Directions
Preheat oven to 400F.
Cook the pasta in a large saucepan of salted boiling water for 8 minutes.
Drain and rinse under cold running water. Set aside.
Mix well the ricotta, parmesan, mozzarella and egg in a medium ball. Set aside.
Stir in the canned tomatoes, cherry tomato, garlic and vegetable stock, salt and pepper to
taste in a large baking dish, and combine well.
Spoon the cheese mixture into the pasta shells and set on top of the tomato sauce in the
baking dish.
Bake for 25-30 minutes or until the cheese is golden, and shell starts brown. Or you can
use broiler at the last 2 or 3 minutes.
Cool 2 or 3 minutes, then serve warm.
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Ladle 2 1/2 T crepe batter into heated pan. The crepe batter should lightly cover the
bottom of the pan in a thin layer.
Tilt pan to cover evenly.
When edges of crepe turn lacy and brown and crepe is cooked through,remove crepe and
stack on a plate.
Continue until all the batter is used.
When the crepes are cooked, assemble the rolls: spoon 2 rounded T of ricotta cheese
mixture and 1 T spinach mixture on each crepe.
Fold or roll each crepe to seal in mixture.
Place rolled crepes in a greased rectangular casserole dish.
When the pan is full, spoon marinara sauce over crepes.
Bake at 325 degrees F. for 15 to 20 minutes.
Serve with grated Parmesan cheese.
If you don't have a crepe pan, you can use a small (6-inch) non-stick frying pan. You can
make your own marinara sauce, or use a prepared marinara or spaghetti sauce.
Feel free to sprinkle some extra cheese on top before baking.
Directions
Blend ricotta cheese and cream cheese well. Blend in sugar. Beat in eggs, one at a time.
Add vanilla, lemon juice, cornstarch, flour and butter. Fold in sour cream and blend well.
Pour into 10 inch buttered springform pan. Place in cold oven and turn heat to 325
degrees. Bake 1 hour. Do not open oven door; turn off oven and leave until cool at least 2
more hours.
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RICOTTA CHEESE CAKE
Ingredients
1/4 c. sugar
1/4 c. melted butter
1 c. graham cracker or vanilla wafer crumbs
Add sugar and crumbs to melted butter and press into bottom and sides of a 9 inch
buttered springform pan. Bake for 7 minutes at 350 degrees.
FILLING:
1 lb. ricotta cheese
1 c. sour cream
3 eggs
3/4 c. sugar
1 tsp. vanilla
1/4 tsp. cream of tartar
1 lemon, grated rind
Directions
Cream ricotta with sour cream until smooth. Add 3 egg yolks, sugar, vanilla and grated
rind of lemon. Beat for 30 seconds to 1 minute. Beat egg whites with cream of tartar,
until soft peaks form. Fold egg whites into cheese mixture (DO NOT BEAT) and pour
into cooled crust.
Put baking dish filled with boiling water on bottom shelf of oven. Bake 1 hour at 300
degrees. Turn off heat and leave in oven 30 minutes. Open oven door and let it cool in
oven. When cool, remove sides of pan and refrigerate at least 3 hours before serving.
Source:
• Ricotta Cheese-- http://www.cooks.com/rec/search/0,1-0,ricotta_cheese,FF.html
• Recipes for Ricotta-- http://recipeland.com/search?q=RICOTTA
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