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Technology Transfer of the Improved Method of Vitamin A Fortificant Application and
Subsequent Training at Lola Concordia’s Facility
The adoption of the improved method of Agustin et al. (2006) for vitamin A fortificant
application which addition is to be done after the second and final grinding (Fig. 1) is pending until the
distributor will be able to find a smaller pack of the fortificant. Negotiations have already been done after
which the products will be tested for stability of vitamin A. The vitamin A fortified peanut butter products
will be launched later and results included in the impact assessment report.
Determination of Product Cost Break-Even Price
Table 2 shows that in a 10-kilogram formulation, the break-even cost of a jar containing 250
grams was PhP49.78 and the company can sell it at 20% mark up or at PhP60.00/jar which is still
competitive since the existing price of a stabilized peanut butter is PhP75.00 computed to a 250-gram jar.
Table 2. Product cost and break-even and selling prices of stabilized peanut butter based on 10-
kilogram formulation.
Item Level (%) Actual Amount Price/unit Cost
Roasted peanut 84.5 8.45 Kg. PhP120/Kg PhP1014.00
sugar 14.0 1.4 Kg. 40/Kg 56.00
salt 0.5 0.05 Kg. 2.00
Stabilizer 1.0 0.1 Kg. 50.00
Labor (2 workers at
300
P150/day)
Fuel 50
Packaging and label 37 jars 370.00
Total 1842.00
Break-even price/jar 49.78
Selling Price/jar (with a
PhP60.00
20% mark up)
Competitor’s PhP75.00
price
CONCLUSIONS
Knowledge of sorting, use of stabilizer in peanut butter and fortification had to be incorporated for
the adoption of improved method in peanut butter processing.
The success in the adoption and commercialization will be dependent not only on the acceptability of
the quality of the products but also on the price so economics of scale will be considered throughout the
period of the collaboration.
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