Chapter I
THE PROBLEM

This chapter discusses the problem of the study. It contains the background and rationale, statement of the problem and objectives, significance, scope and limitation, research design and methodology of the study.
1.1 Background and Rationale of the Study Due to increase in population size, the world today craves for a higher consumption of biodiesel, vegetable oil, health supplements, cosmetics and other food and non – food products that people cannot live without. One main source of these products is African Oil Palm. According to Escobar et al. (2008) the African Oil Palm is the most productive species among oleaginous plants. It is a traditional native crop for the West and Central African communities, occurring between Angola and Gambia. This plays a major part of the culture of Africans and they use it both in the household and in the market.
The quest for renewable energy has intensified since the escalating price of crude petroleum in the recent years. Renewable energy such as biodiesel has the potential to replace petroleum – derived transportation fuel in the future. Biodiesel is a renewable and biodegradable diesel fuel extracted from plant oil. It is a natural hydrocarbon with negligible sulfur content which will substantially help in reducing emissions from diesel – fed engines. According to the study conducted in Malaysia, the African Oil Palm has properties and potential for making biodiesel. Due to this discovery, African Palm Oil became the base of a highly profitable agro – industry that attracts the attention of many potential investors nowadays. African oil palm industry is the second largest industry in the country of Honduras. African Oil Palms produce palm oil, a type of vegetable oil whose main use is for cooking. Honduras is exporting it to the tune of $350,000,000 to $450,000,000 per year. According to Adnan (2011), the global market has become increasingly dependent on palm oil but major producers like Malaysia and Indonesia are facing tougher operational challenges to cater to the rapidly growing global demand. This calls for the need to expand sustainable African Oil Palm farming worldwide.
Other variety of products can also be obtained from African Oil Palms. These include food and non – food products. According to Salmiah (2000), Food products that could be obtained from African Oil Palms are composed of edible and industrial oils and fats, vitamins A and E, shortenings, vanaspati, margarines, ice cream, cookies, crackers, cake mixes, icing, instant noodles, non - dairy creamer and biscuits. Non – food products that can be obtained from it are animal concentrates, soaps, detergents, cosmetics, lotions and even polyurethane, polyols and polyacrylates. There is already an existing African Oil Palm Farming in the provinces of Sarangani and Cotabato. Optimum climate and management factors have a positive correlation to the yield potential of African oil palm. The main climatic factors affecting growth and yield of African oil palm are rainfall, temperature, topography and solar radiation. The physical characteristics of the soil are also an important factor to be considered. The climatic conditions of General Santos City are almost the same with the climatic conditions of existing African oil palm agricultural lands in Region XII.
Given all these facts, the researchers want to conduct this study in order to test the feasibility of establishing African Oil Palm (Elaeis guineensis Jacq.) farming in General Santos City. The general goal of the researchers is to open up a new business opportunity for General Santos City and other interested individuals. Furthermore, this leads the researchers to the formulation of their general and specific objectives.
1.2 Statement of the Problem and Objectives of the Study This study aims to test the feasibility African Oil Palm Farming in General Santos City. Specifically, this study aims to accomplish the following objectives: 1. Determine the economic importance, environment impact and yield potential of African Oil Palm Farming. 1. Identify the agronomy, agro – ecological and other necessary requirements for African Oil Palm Farming and test the qualification of General Santos City to these requirements. 2. Determine the management, organizational, marketing, technical, and financial and socio – economic feasibilities of African Oil Farming and its impact to General Santos City. 3. Develop a business plan proposal from the feasibility study conducted.
1.3 Significance of the Study This study attempts to find out the feasibility of African Palm Oil Farming in General Santos City .The findings of this study would be beneficial to various sectors which are as follows. This study would be beneficial to General Santos City who is concerned in the growing unemployment of its fishermen and other Generals. In ensuring the progress of the city and the livelihood of its citizens, GenSan should provide an alternative industry which would help in the growth of its community, and the most important of this, is making jobs and gaining profit. This study will comprise the basis for the strategic plans, policies and guidelines to African Oil Farming, and evaluation of General Santos City’s environment as a place suitable for African Oil Farming. This study would enable businessmen and entrepreneurs to engage or invest in a business venture where they could maximize profit and lessen cost. This would enable them to have the knowledge, requirements, rewards and profits in putting up their own African Oil Farm. Most especially, this study would make them see that GenSan, like it’s neighbors, Saranggani and Cotabato could be one of the African-Oil producing city in the Philippines, and that in order to realize this notion, the businessmen and the like should play the vital role of insinuating this project This study would be significant to the Generals, because the economic industry is of their concerns too. With the realization of the African oil palm industry, jobs would be made, income would be generated and the city’s GDP would increase- making the standard of living in GenSan even better. Generals wouldn’t have to export from other places. Consequently, such improvement will provide the Generals easier access to African oil palm products (cooking oil, diesel fuel, gas, etc.) and a way to have an income so that these people can sustain their needs and be useful individuals to the society. To the researchers, this study will give them a higher level of awareness and heightened sense of the importance of discovering new industry for General Santos City. Moreover, the researchers strongly believe that the African Oil Farming has the greatest potential for income and the betterment of the city. Therefore, they want to make a positive influence and difference in the lives of the community by conducting this study. Furthermore, this study will instill in their minds to be continuously and passionately open to business ideas and opportunities like the African Oil Farming in General Santos City.
1.4 Scope and Limitations of the Study This study covers the different aspects of the statement of the problem and objectives. The researchers will give a closer look on the agronomy, agro – ecological aspects, environmental impact, economic impact and yield potential of Elaeis guineensis Jacq., commonly known as the African Oil Palm. It will be focused on the geographical area of General Santos City, especially the locations of Conel, Upper Klinan and Olympog. The respondents of this study are limited to the existing businessmen, and owners of African Oil Palm Farming in Saranggani and Cotabato provinces. They will be given questionnaires and interviews for the researchers to gather the necessary information for this study. This study will be conducted this first semester of school year 2012-2013 of Notre Dame of Dadiangas University.
1.5 Research Design and Methodology In order to make the study possible, it is necessary for the researchers to adopt an appropriate research design and methodology. The research design and methodology should lead to the accumulation of necessary information to satisfy the needs of the researchers. These data would be tabulated, analyzed and interpreted to come up with a sound generalization about the population.

1.5.1 Research Method This study aims to test the feasibility of establishing African oil palm farming in General Santos City. In order to make this possible, the researchers will make use of the supplementary descriptive research method. This supplementary descriptive research method calls for a study conducted to add up information about African oil palm and to describe how feasible it’s farming in General Santos City.
1.5.2 Respondents of the Study
The respondents of the study are the existing businessmen, and owners of African Oil Palm Farming in Region XII particularly in the areas of Sultan Kudarat. They will be identified with the use of random sampling method. This method offers an unbiased and equal opportunity to these potential respondents. Once identified, they will take an active part in the research activities to be conducted.
1.5.3 Locale of the Study The local of the study is General Santos City. It is located at the southernmost tip of the Philippine archipelago with bearings of 6°7'North Latitude 125°10'East Latitude. It belongs to Region XII which is also known as Southern Mindanao. It is bounded by three municipalities of Sarangani province namely, Alabel, Malungon and Maasim and two municipalities of South Cotabato province namely, Polomolok and T'boli.
The city is one of the most populous urban centers in the country with a population of 538,086 as per census data of 2010. It has a total land area of 53,606-hectare, which is 1.7% of Region XI's entire area. 35% or 19,040 hectares of the whole area are suitable for urban uses. Around 23,000 hectares can be used for intensive and specialized agriculture while 11,564 hectares of higher slopes are available for reforestation and grazing purposes. The city has six rivers, three of which, namely, Silway, Siguel and Buayan rivers, are rich sand and gravel quarry sites.
1.5.4 Research Instrumentation This study aims to test the feasibility of establishing an African Oil Palm Farming in General Santos City. In order to make this possible, the researchers will make use of the supplementary descriptive research method. This supplementary descriptive research method calls for a study conducted to add up information about African oil palm and to describe how feasible it’s farming in General Santos City. This study will be aided by the use of descriptive research instrumentation namely site visits, surveys, interviews and descriptive statistical tools.
1.5.5 Data Gathering Procedure In order to accomplish both the general and specific objectives of the study, the researchers will be undertaking various data gathering procedure. First, the researchers will conduct site visits, interviews and surveys among the respondents which are chosen randomly. Second, the researchers will have to gather the information from the respondents, organize and summarize these data into forms and tables. Third, they have to analyze the information in terms of its management and organizational feasibility, marketing feasibility, technical feasibility, financial feasibility and socio – economic feasibility. After all these feasibility tests are conducted, the researchers will summarize their findings and conclusion, together with their recommendations for further and supplemental studies. From this, a business plan proposal might be developed with the aim of opening up a new business opportunity for everyone.