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Feasibility Study: Sugarcane Juice Business

This chapter introduces the feasibility study for a sugarcane juice business in the Philippines. It provides background on sugarcane production, noting that sugarcane is a major crop and export. The top sugarcane producing regions in the Philippines are identified. It also describes how sugarcane juice is commonly consumed as a drink. The objective of the study is to determine the feasibility of a sugarcane juice business in Capiz Province.

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0% found this document useful (0 votes)
122 views4 pages

Feasibility Study: Sugarcane Juice Business

This chapter introduces the feasibility study for a sugarcane juice business in the Philippines. It provides background on sugarcane production, noting that sugarcane is a major crop and export. The top sugarcane producing regions in the Philippines are identified. It also describes how sugarcane juice is commonly consumed as a drink. The objective of the study is to determine the feasibility of a sugarcane juice business in Capiz Province.

Uploaded by

some random dude
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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Chapter 1

Introduction to Feasibility Study

Project Background and Rationale

From ancient times sugar has been produced around the world.

Sugarcane is usually grown in tropical and temperate regions of

the world. When fully matured, the stem comprises 75 percent of

the whole plant. Sugarcane is categorized as a cash crop, and its

major constituents are 63-73 percent water, two to three percent

non-sugars, 12-16 percent soluble sugars, and 11-16 percent

fiber.

The sugarcane industry is one of the major pillars of the

Philippine economy. A multi-product industry, it produces cane

sugar, bioethanol as green energy and sugar cane juice. Sugar

cane is a major traditional export crop and a principal source of

foreign exchange earnings. It is the lifeblood of the economies

of the major sugar-cane producing provinces of the country.

Western Visayas continued to be the top sugarcane-producing

region with 1.34 million metric tons or 47.2 percent share to the

total production for this quarter. This was followed by Northern

Mindanao and Central Visayas with corresponding productions

of 516.79 thousand metric tons (18.3%) and 355.41 thousand metric

tons (12.6%). These regions contributed 78.1 percent of the


country’s total sugarcane production (Philippine Statistics

Authority, 2023)

With the ever-increasing demand for soft beverages and fruit

based beverages, both carbonated and still are available in the market

in plenty. India offers itself a potential market for these products.

Sugarcane juice is used as a delicious drink in both urban and

rural areas in many countries. Fresh juice cannot be stored

normally for more than six hours due to the presence of simple

sugars through sugar cane juice extractor, which spoils the juice

quickly. Fresh sugarcane juice obtained from mature cane is sweet

and tasty. Consumption of sugar cane juice has a human history

spanning at least the past five thousand years made in Fresh

sugarcane juicer machine. This juice is as natural as it gets,

and the sugar contained in the product does not turn into fat but

leaves your body without creating any fat.

All the sugarcane produced in the country is not lifted by the

sugar mills, leaving almost one third for use in the production of gur

and khandsari. Again, there is not much market potential for these

products. This necessitates finding ways and means of using sugarcane

for other purpose. It is in this context, the proponent is introducing

a sugar cane juice business in the Province of Capiz.

Objective of the Study


The general objective of the proposed project is to

determine the management, marketing, technical, financial and

social feasibility of sugar cane juice business in the Province

of Capiz.

Description of the Proposed Project

Sugarcane juice is not only like any other sweet juice but

it has many other nutrients. Sugarcane juice is extracted from

the cane by pressing it through iron rollers. It is nutritious

and refreshing. It contains about 15 % natural sugar and is rich

in organic salts and vitamins. The juice can also be used for

drinking or sweetening. In hot summer days, it is a cooling

drink. A little lime juice may be mixed in the juice to improve

its flavour.

Sugarcane juice is used as a delicious drink in both urban

and rural areas in many countries. Sugarcane juice is highly

nutritious and thirst quenching drink. The preservation of raw

sugarcane juice is very difficult because it turns brown soon

after extraction and gets spoiled due to fermentation within

hours. The total production of sugarcane in India is about 271

million [Link] is grown mainly for producing sweeteners such

as sugar, jaggery andkhandasari. A small portion of sugarcane is

also utilized for other pur-poses. Sugarcane juice is available

almost throughout the country.


Type of Business Organization

Common questions

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The sugarcane juice business aligns with current beverage consumption trends and health awareness by offering a natural, nutritious, and refreshing drink in line with consumers' growing preference for healthier options. Its natural sugar content and additional nutrients cater to the health-conscious market, setting it apart from sugary, artificial beverages .

Sugarcane juice, in contrast to processed sugars, is rich in organic salts, vitamins, and contains about 15% natural sugar. It is a nutritious and refreshing drink, providing more nutrients than processed sugars, which predominantly offer empty calories without essential nutrients .

Western Visayas, Northern Mindanao, and Central Visayas in the Philippines produce 78.1% of the country's sugarcane, while India's total production is about 271 million tonnes. India's larger production capacity allows for a more diversified usage of sugarcane products, affecting its economy by supporting multiple industries like sweeteners, biofuels, and beverages. The Philippines, despite its smaller scale, relies heavily on sugarcane as a crucial export commodity .

The sugarcane juice business in Capiz is significant for local economic development as it introduces a new avenue for utilizing sugarcane, creating jobs, and stimulating the economy through production and retail activities. It also aims to meet local and potentially export market demands, diversifying income sources for local farmers .

The Philippines could enhance sugarcane utilization by investing in research and development of new products such as value-added food and beverage items, bioethanol, and biodegradable materials. Establishing collaborative ventures with industries in the health and wellness market can also diversify product offerings beyond traditional gur and khandsari .

Sugarcane cultivation, as a cash crop, impacts agricultural landscapes by driving regional economies where it is a primary agricultural product. In tropical and temperate regions where it is typically grown, sugarcane production influences land use patterns, crop rotation methods, and affects local biodiversity due to large-scale cultivation practices .

Innovative strategies include emphasizing sugarcane juice's nutritional benefits, creating unique flavors with natural additives like lime, and leveraging eco-friendly packaging. Engaging in digital marketing campaigns that highlight health benefits and encouraging consumer trials through strategic partnerships and promotions can also enhance competitiveness against other beverages .

The sugarcane industry is a major pillar of the Philippine economy, contributing significantly as a multi-product industry producing cane sugar, bioethanol, and sugar cane juice. It is a major traditional export crop and principal source of foreign exchange earnings, vital to the economies of the major sugar-cane producing provinces like Western Visayas, Northern Mindanao, and Central Visayas, which together contribute 78.1% of the country's total sugarcane production .

Beyond traditional uses, potential markets for sugarcane juice include health and wellness sectors, where it can be positioned as a natural, nutritious drink. This can be developed by marketing its health benefits and refreshing qualities. In countries like India, broadening distribution channels to urban centers and enhancing packaging for better preservation can also expand market reach .

The primary challenge in preserving fresh sugarcane juice is its tendency to turn brown and spoil due to fermentation soon after extraction. One method to address this is by enhancing the juice with additives such as lime juice to improve flavor and potentially affect its preservation. Additionally, improving storage techniques and implementing preservation technologies can help extend shelf life .

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