Financial Viability of Medicinal Plant Farming Part 2

Based on the information generated by ERDB from the pilot project on the integration of medicinal plants as agroforestry crops, the following are the projected income return per hectare of four scientifically validated medicinal plants

1. Ampalaya (Makiling variety): leaves – Year 1

  • No. of harvests: 48 (twice/week x 4 weeks x 3 mo. X 2 crop season) – Amount (Php) 48,000.00
  • Total fresh weight (kg per year): (1,000 kg/harvest)
  • Weight after drying (kg per year): P7,200.00 (48,000 kg x 15% recovery)
  • Estimated cost of production:
    • Cost of materials (seeds, organic Fertilizer, and pesticides, etc.): P106,200.00
    • Cost of labor (land preparation, clearing, Harvesting, air drying, etc.): P792,000
  • For drying of materials with additional cost of Oven type dryer & maintenance: P120,000.00
  • Gross income on fresh leaves at Php30.00/kg: P1,440,000.00
  • Gross income on dried leaves at Php300.00/kg: P2,160,000.00
  • Estimated net income on fresh leaves: P421,800.00
  • Estimated net income on dried leaves: P1,141,800.00

2. Sambong: leaves – Year 1

No. of harvests: 2 (six months after planting & 3 months thereafter Harvest done twice a year). Estimated cost of production Amount in (Php):

  • Cost of planting materials for 1 ha With spacing of 0.5 x 1.0 meters (20,000 plants/ha x Php10.00/plant): P200,000.00
  • Cost of labor (clearing, planting, maintenance, Harvesting 10 persons at Php250.00/day for 48 hours): P120,000.00
  • Cost of soil management: P5,000.00
  • Cost of pest management (non-use of pesticides) 10,000.00
  • Cost of water management: P2,000.00
  • Total cost of production for fresh materials: P337,000.00
  • Gross income for fresh leaves (Estimated harvest: 60% yield 12,000 kg/ha x Php20.00/kg of fresh leaves x 2 harvest): P480,000.00
  • Net income of fresh leaves: P143,000.00

In dried leaves

  • Additional cost of oven drying operation and management: P110,000.00
  • Gross income for dried leaves (Basis: yield 24,000 kg/ha/yr of fresh leaves x 15% recovery x Php300.00/kg delivered): P1,080,000.00, Less: Total cost of production for dried leaves: 447,000.00
  • Estimated net income on dried leaves: P633,000.00

3. Lagundi: leaves – Year 1

No. of harvests 2 (six months after planting & 3 months thereafter Harvest done twice in a year). Estimated cost of production: Amount (Php):

  • Cost of planting materials for one hectare with Spacing of 1.0 x 1.0 meter (10,000 plants/ha x Php10.00/plant): P100,000.00
  • Cost of labor (clearing, weeding, planting, maintenance and harvesting): 10 persons at Php250.00/day for 48 days): P120,000.00
  • Cost of soil management: P5,000.00
  • Cost of pest management (non-use of pesticides): P10,000.00
  • Cost of water management: P2,000.00
  • Total cost of production for fresh materials: P237,000.00
  • Gross income for fresh leaves (Estimated harvest: yield 10,000 kg/ha x Php20.00/kg of fresh leaves x 2 times harvest): P400,000.00
  • Estimated net income on fresh leaves: P163,000.00

In dried leaves

  • Additional cost of oven drying operation and management: P110,000.00
  • Gross income for dried leaves (Basis: yield 20,000 kg/ha of fresh leaves/yr x 15% recovery x Php300.00/kg delivered): P900,000.00, Less: Total cost of production for dried materials: P347,000.00
  • Estimated net income on dried leaves: P553,000.00

4. Acapulco: leaves – Year 1

No. of harvests 4 (four months after planting & 2 months thereafter Harvest done four x in a year) Estimated cost of production: Amount (Php):

  • Cost of planting materials (Php10.00/plant), Population density 3,000 plants/ha with spacing of 1.5 m x 1.0 m: P30,000.00
  • Cost of labor (clearing, planting, maintenance, and harvesting: 10 persons at Php250.00/day for 48 days): P120,000.00
  • Cost of soil management: P5,000.00
  • Cost of pest management: P 10,000.00
  • Cost of water management: P2,000.00
  • Total cost of production of fresh materials: P167,000.00

Additional cost if dried

  • Air drying + oven drying: P20,000.00
  • Cost of oven type dryer + maintenance: P90,000.00
  • Total cost of production for dried materials: P277,000.00
  • Gross income for fresh leaves: P400,000.00
  • Gross income for dried leaves (Basis: yield 40,000/kg/ha/yr fresh leaves x 15% recovery x Php100.00/kg):
    • Estimated net income on fresh leaves 233,000.00
    • Estimated net income on dried leaves 323,000.00

To summarize the production process, Figure 1 below shows the different stages of activities in the production of medicinal plants before the delivery of raw materials to the manufacturing plant. (Source: Data gathered from the interviewed done with Mr. Alex Parducho, Farm Manager, Altermed Corporation)

Using the basic information, any individual, cooperative, or corporation could venture into the herbal and medicinal products enterprise. There is a market for raw materials produced

Figure 1. Stages of activities in the production of medicinal plants

List of some producers of herbal and medicinal product in the Philippines [click to enlarge]

For more information, contact:

Department of Environment and Natural Resources
Central Office: Visayas Avenue, Diliman,
1100 Quezon City, Philippines
Telephone: +63-2-929-6626
Email: [email protected]
Web: www.denr.gov.ph

Compiled by Aurora S. Jose, photo from fm2.fieldmuseum.org

Leave a Reply

Your email address will not be published. Required fields are marked *