Here’s a TESDA- and Oud Academia–aligned module on Costing & Margin Analysis for agarwood leaf tea, focused on food-grade, non-resin leaves, premium branding, and export-ready pricing.
Costing & Margin Analysis
Food-Grade Agarwood Leaf Tea
1. Core Principle
“Accurate costing and margin analysis ensure profitability, sustainability, and informed pricing decisions for local and export markets.”
Understanding all costs from farm-to-cup allows producers to set competitive prices, ensure quality, and maintain healthy profit margins.
2. Cost Components
| Category | Description | Notes |
|---|---|---|
| Raw Materials | Seedlings, fertilizers, soil amendments | Include sustainable/organic inputs |
| Cultivation & Labor | Pruning, agroforestry management, harvesting | Labor-intensive; ethical sourcing costs included |
| Post-Harvest Processing | Washing, sanitation, drying, sorting, grading | Energy, labor, and equipment costs |
| Packaging | Loose leaf, tea bags, pyramid sachets, desiccants, nitrogen flushing | Barrier packaging costs affect shelf-life |
| Quality Assurance | Sensory profiling, moisture & oxygen control, microbial testing, shelf-life validation | Ensures compliance and premium product quality |
| Regulatory & Certification | FDA-PH registration, export permits, organic or ESG certifications | Fixed cost per batch or annualized |
| Logistics & Distribution | Storage, shipping, export documentation, tariffs | Varies by domestic or export markets |
| Marketing & Branding | Labeling, cultural storytelling, community profiles, promotion | Supports premium pricing and market differentiation |
| Overheads | Utilities, administration, equipment depreciation | Allocate proportionally to each batch |
3. Margin Calculation
- Total Cost per Unit = (Raw Materials + Labor + Post-Harvest + Packaging + QA + Regulatory + Logistics + Marketing + Overheads) ÷ Units Produced
- Selling Price per Unit = Total Cost × (1 + Target Margin %)
- Gross Margin % = ((Selling Price − Total Cost) ÷ Selling Price) × 100
- Net Profit per Unit = Selling Price − Total Cost − Taxes/Fees
Example:
- Total Cost per 50g tea pack = ₱150
- Target Margin = 40%
- Selling Price = ₱150 × 1.40 = ₱210
- Gross Margin = 28.6%
4. Local vs Export Considerations
| Market | Cost Factors | Margin Implications |
|---|---|---|
| Local | Domestic labor, transport, packaging | Lower shipping/tariff costs; moderate margins |
| Export | Shipping, customs, tariffs, foreign market compliance | Higher cost per unit; justify premium pricing with quality, traceability, ESG story |
5. TESDA-Aligned Learning Outcomes
Learners will be able to:
- Identify all cost components in agarwood leaf tea production
- Calculate unit costs, selling prices, and gross/net margins
- Adjust pricing for local and export markets
- Analyze profitability per batch or product line
- Integrate costing with sustainability, branding, and quality control
6. Integration with Other Modules
- Farm-to-Cup Value Chain: maps cost allocation across stages
- Packaging & Shelf-Life: affects per-unit cost and margin
- Ethical Sourcing & Community Stories: adds premium value justifying higher margins
- Pricing Strategy: aligns with cost and target profitability
- Export Readiness: ensures regulatory, logistics, and compliance costs are included
7. Regulatory & Export Notes
- Include FDA-PH and ASEAN compliance costs in export pricing
- Ethical sourcing, traceability, and certifications may increase cost but support premium margins
- Transparent costing improves investor confidence and consumer trust
✅ Ideal For:
- TESDA CBLM & business management modules
- Oud Academia premium tea production, functional blends, and export readiness courses
- Plantation SOPs for cost tracking, margin planning, and pricing strategy
- Export-ready loose leaf, tea bag, and pyramid sachet products
I can next create:
- A visual Costing & Margin Analysis infographic showing all cost components, markup, and gross/net margin calculation
- A ready-to-use costing template for batch-level analysis and export pricing
- Integration into TESDA submission package alongside Farm-to-Cup and Export Readiness modules
Do you want me to make the Costing & Margin Analysis infographic next?