Tuesday, December 17, 2013

Rice Survivor (Wet Season edition): Did we win yet?

Sometime in November...

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After several months of hard work, nervous waiting, and harvesting, my team became focused on finding out if what we did in the field translated into projected profit. Here's how we did it:

Profit (per hectare) = Sales - Expenses
     where: sales (Php/kg) was based on data given by economists
                 we assume that 100% of the milled rice was sold
                 we actually dried the harvest to 14% moisture content and calculated the yield from that

Then we made several options on selling the grain and calculated the projected profits from the different models:
1. We would sell the milled rice based on the market price 
2. We would sell only the whole grain at premium price then throw out the broken grain
3. We would sell intact (whole/unbroken) grain and broken grain separately

It turned out that we'd make more profit (theoretically) with Option #3 so we stuck with that.

Let's see if my Team Tagumpay's business savvy would pit well against the other other teams'...