Corresponding Author

The Philippine economy is basically agro-based and as a developing country, it has to develop first its agricultural sector for employment generation. Silkworm rearing for cocoon production can be successfully demonstrated by utilizing the areas with potentials that are unutilized and underutilized in Region I. One of this area to consider is Sipulo, Bacnotan, La Union. The study was conducted in Sipulo, Bacnotan, La Union CY 2010 to 2011. There were nine (9) silkworm rearings conducted in each year from mulberry establishment. The significance of the study demonstrated that cocoon production is viable as additional source of income. Determined the benefits desired from the project by the farmers and at the end of the project the farmers continued to engaged in cocoon production with other cash crops. The project aims to showcase the package of technologies on cocoon production, specifically to determine the benefits derived from cocoon production in Sipulo, Bacnotan, La Union, to determine economic viability of cocoon production and to identify the best practices in cocoon production technology. On year 2010, the project earned P 31,458.00 from eight (8) boxes of silkworms with the total weight of 179 kg. of fresh cocoons with and ROI of 78.72 % and net profit of P 5,469.77, while in CY 2011 229.25 kg. of fresh cocoons produced out of 7.1 boxes of silkworms amounted to P 44,695.00, with ROI of 144.47 % and total profit of P 10,038.11. Aside from the income on silkworm rearing, the earnings from firewood, P24,489.00, mulberry cuttings P6,500.00, silkworm waste P6,000.00, inter-crop fruits P11,757.00, and vegetable