ESTABLISHMENT OF FORMOSOS ODOR-FREE HOG RAISING BUSINESS DUBBED

AS GUTUG NGA AWAT TU DAGU-NA: AN ECO-FRIENDLY HOG FARMING IN

URBAN AREAS

Table of Contents
Title Page -----------------------------------------------------------------------------

Approval Sheet -----------------------------------------------------------------------

ii

Mission and Vision Statement -----------------------------------------------------

iii

Goal and Objective Statement ----------------------------------------------------

iv

CHAPTER I
Introduction ---------------------------------------------------------------------------

CHAPTER I
Project Summary -------------------------------------------------------------------A.
B.
C.
D.
E.
F.

Name of the Project -------------------------------------------------------Location of the Project ---------------------------------------------------Brief Description of the Project ----------------------------------------Project Long-Range Objective -----------------------------------------Feasibility Criteria -------------------------------------------------------Highlights of the Project ------------------------------------------------1. History ------------------------------------------------------------2. Project and Time Table Status ---------------------------------3. Nature of the Industry -------------------------------------------4. Mode of Financing -----------------------------------------------5. Investment Cost --------------------------------------------------G. Major Assumption and Summary --------------------------------------1. Market Feasibility -----------------------------------------------2. Technical Feasibility --------------------------------------------3. Financial Feasibility ---------------------------------------------4. Socio-Economics -------------------------------------------------5. Management --------------------------------------------------------

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CHAPTER II
Organization and Management Study ------------------------------------------A.
B.
C.
D.
E.
F.

Basic Consideration -----------------------------------------------------Form of Ownership ------------------------------------------------------Organization Chart ------------------------------------------------------Different Function and Responsibility --------------------------------Manpower Requirement ------------------------------------------------Salary/Compensation -----------------------------------------------------

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CHAPTER III
Marketing Aspect -------------------------------------------------------------------

A. Basic Consideration -------------------------------------------------------

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B. Demand of the Product ---------------------------------------------------Table 1 Estimated Total Population ---------------------------Table 2 NNHS ---------------------------------------------------Table 3 NNHS ----------------------------------------------------

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C.
D.
E.
F.
G.
H.

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Supply for the Product ---------------------------------------------------Product Description ------------------------------------------------------Price of the Product ------------------------------------------------------Supply Situation and nature of competition ---------------------------Demand and Supply Analysis -------------------------------------------Marketing Program and Product Position -------------------------------

CHAPTER IV
Socio-Economic Aspect ----------------------------------------------------------A.
B.
C.
D.

Fundamental and Economic Problems ---------------------------------Taxes ------------------------------------------------------------------------Environment Effect--------------------------------------------------------Waste Disposal--------------------------------------------------------------

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CHAPTER V
Technical Aspect ------------------------------------------------------------------A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.

Production Process -------------------------------------------------------Machinery Capacity and Design-----------------------------------------Machinery Supply----------------------------------------------------------The Plants Location---------------------------------------------------------Plant Layout ----------------------------------------------------------------Raw Material and their sources ------------------------------------------Quality and Quantity -----------------------------------------------------Availability of Utilities --------------------------------------------------Building and Utilities --------------------------------------------------Waste Disposal Method-------------------------------------------------Transportation -------------------------------------------------------------

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CHAPTER VI
Financial Aspect ------------------------------------------------------------------

A. Introduction -------------------------------------------------------------B. Assumption -------------------------------------------------------------C. Depreciation --------------------------------------------------------------

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Vision Statement
By year 2027 with the aid of Almighty God, Formosos Ordorless Hograising
Business (FOHB) dubbed as Gutug nga Awat Tu Dagu-na is envisioned to establish the
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first semi-commercial odor-free hograising farm all over Cagayan Province and promote a
natural farming and organic feeding methods in order to produce a healthier, safer food,
improve hograising enterprise in a sustainable way, odor-free and protect our Earth.
Mission Statement
Formosos Ordorless Hograising Business (FOHB) shall establish a semi-commercial
hograising farm with an odor-free piggery which solves bad odor and health risks, get easier,
cleaner, and cost-effective, reduce antibiotic dependency in swine, sustain environment and
community-friendly, promote health protection for both humans and animals and promote
humane animal treatment.
Goal Statement
Formosos Ordorless Hograising Business (FOHB) aims to establish a semicommercial environment and community-friendly hograising farm and meat processing
facility in Tuguegarao City, Cagayan with the use of organic feeding and natural farming
methods that mimics the natural habitat of hogs.
Business Objectives
Long Term Objectives
Formosos Ordorless Hograising Business (FOHB) shall have been established a
commercial hog raising business that would provide the following long term objectives:
1. To establish a Commercial Odor-Free Hog Farms with ten (10) branches all
over Cagayan Province.
2. To sustain an environment and community-friendly hog farms.
3. To produce a healthier and safer swine meat for Tuguegaraueos.
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4. To be the number 1 supplier of swine meat at different meatshops all over

Region 2 at a lower price.
Short Term Objectives
Upon its establishment, the hog raising business shall have been achieved the
following short range objectives:
1. To cater and supply swine meat at meatshop stalls all over Tuguegarao City at
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3.
4.
5.
6.

affordable price.
To solves bad odor and health risks piggery farm.
To get easier, cleaner, and cost-effective piggery farm.
To reduce antibiotic dependency in swine.
To promote health protection for both humans and animals.
To promote humane animal treatment.

CHAPTER I
INTRODUCTION

Hog raising in the Philippines, a basically agricultural economy, can be a possibly

profitable venture as attested by the rising number of people across the regions who have
gone into swine raising. Swine raising has become very popular in many regions because
during town fiestas people expect nearly every household to have lechon or roasted whole
pork on their dining tables.
From as far north as Cagayan, raisers say they are literally in business, with swine
raising a profitable agriculture venture which could help improve some peoples lives.
According to study, the total swine inventory as of January 1, 2013 was 11.8 million heads.
This was 0.17 percent lower than 2012 inventory of 11.9 million heads. Swine population in
the backyard farms dropped by 2.90 percent while, that in commercial farms expanded by
5.45 percent against the 2012 level. About 65 percent of the stocks were raised in backyard
farms and 35 percent were in commercial farms.
Among the products of this stock is pork, one of the basic foods which all Filipinos
eat. It is one of the best sources of protein needed by the body to be strong and healthy. That
is why a need for a farm arises. Hog raising business has been a very popular and dependable
business. In fact, Hog raising business had dominated the swine industry as a healthy and
viable commercial sector. Even in our traditional Filipino Festival/Occasion, Filipinos always
crave for cuisine with pork. This had marked our traditional way of celebrating special
occasions in our lives, and it proved our undying taste for pork.
Most people would think that piggeries are smelly, teeming with flies and surrounded
by stench that could be smelled from a mile away forcing operators to place their pig pens far

from urban centers. While fairly new, the practice of natural hog raising or Babuyang
Walang Amoy has increased steadfastly through the years. More and more Filipinos, both
experienced farmers and those in the commercials, have begun to adopt this technology of
growing healthy pigs as enterprise. Many new farmers have built their own backyard
Babuyang Walang Amoy using indigenous and even recyclable materials available in their
surroundings. And many current backyard raisers have also opted to convert their existing
conventional pens into this more economical and sustainable technology.
There is more to the Babuyang Walang Amoy (literally piggery with no smell)
technology than being just odor-free. While its most distinct feature is being free from bad
odor that is present in most conventional piggeries, its most important feature is that it
mimics the natural habitat of pigs, which allows for stress-free pigs that are less prone to
sickness and diseases. This technology is easier, cleaner, and more cost-effective for farmers,
it reduces antibiotic dependency in pigs, it is environment and community-friendly, and it
promotes humane animal treatment. Coupled with natural, antibiotic-free, fermentable feeds,
the Babuyang Walang Amoy system produces meat that is natural, healthy, and safe for
human consumption. Farmers are also able to further capitalize on this technology by going
into other related ventures like organic farming, vermiculture, organic fertilizer production,
pond aquaculture, and many more.
Using the Babuyang Walang Amoy technology, pigs are able to roam around freely
within the pen on a soft bedding of organic materials such as rice hulls, they are free to cool
themselves off in a shallow wallowing pond, and they are able to exercise their natural
behaviors like burrowing.

Project Summary
A. Name of the Business:
The name of the proposed business is FORMOSOS ORDORLESS
HOGRAISING BUSINESS (FOHB). The trade name used will be adopted from
the name of the proponent since it is a sole proprietorship business which is solely
owned and managed by the owner under the name of Miss Edna Formoso.
B. Nature of Business:
The nature of the proposed business is hog production. The hogs will be
slaughtered and sold to restaurants, eatery stalls and meat-shops such as Save More,
Brickstone and Monterey Meat Shop in Tuguegarao City, Cagayan with lower price as
compared to the current market price.
C. Location of the Business:
According to the very nature of the proposed project though it is odorless hog
farm, which is in line with the livestock type of business, a non-residential area has
been the prime consideration of the proponents in choosing the site of the business.
The FORMOSOS ORDORLESS HOGRAISING BUSINESS (FOHB)
will be established at Brgy Capatan, Tuguegarao City, Cagayan. Brgy Capatan is
located at the eastern part of the city near Pinacanauan River with more or less 1
kilometer away from Centro Proper and it is suitable for backyard and commercial
swine raising. The proposed location had been chosen by the proponent considering
such factors as the availability of resources, accessibility to the potential customers,
location cost and the environment of the business which fall under agro industrial
land type as being classified by the DENR which is the only approved land type and
location for the establishment of a hog farm.
The proposed business should be located in a place with ample sunlight
penetration as sunlight is a natural disinfectant and also provides vitamin D for the

animals. It is also important to note that the location must also allow for ample wind
to flow through the piggery. A cool environment helps foster more stress-free pigs.
Make sure to avoid lowlands where flood incidence is high during rainy
seasons. The earth flooring below the natural piggery must be at the highest possible
level in case of flood.
And to make it easier, choose a location that is accessible to main roads. It will
be easier to transport feeds to the piggery as well as transport harvested pigs from the
piggery to be marketed.
Figure 1: Topography/Location of the Proposed Business

D. Type of Business Organization:

The FORMOSOS ORDORLESS HOGRAISING BUSINESS (FOHB) is a
sole proprietorship also known as the sole trader, is a type of business entity that is
owned and run by the proponent and in which there is no legal distinction between the
owner and the business.
All assets of the business are owned by the proprietor and all the debts of the
business are proprietors debts and she must pay it from her personal resources which
will result to unlimited liability.

The proponents opt to form the business under sole

proprietorship type of business organization as she see it fit considering the nature and
capital requirements of the project. Moreover, it is subject to fewer regulations unlike
the other type of business organization, the owner has full autonomy with regard to
business decisions.
E. Source of Capital
Funding of FORMOSOS ORDORLESS HOGRAISING BUSINESS
(FOHB) for the general operation and other financial demands will be sourced from

the savings of the proprietor. The proponent will invest Php 2,500,000.00 in the
business.
F. Project Long-Range Objective
Ten (10) years from now, the business shall have been established different
commercial hog raising farms and shall have been achieved the following long range
objectives:
1. To establish a Commercial Odor-Free Hog Farms with ten (10)
branches all over Cagayan Province.
2. To sustain an environment and community-friendly hog farms.
3. To produce a healthier and safer swine meat for Tuguegaraueos.
4. To be the number 1 supplier of swine meat at different meatshops all
over Region 2 at a lower price.

G. Management and Personnel Feasibility Summary

FORMOSOS ORDORLESS HOGRAISING BUSINESS (FOHB) will
implement a democratic style of management. This means that all employees will
have the privilege and will be allowed to participate in the decision-making
concerning the farm. The employees as well as the general manager will perform
multi-tasking jobs for easy flow of operation.
H. Major Assumption and Summary
1. Market Feasibility
To determine if the project is feasible, the proponent conducted personal
interview among the residents in the area where the project is to be situated.
According to them, the proposed hog raising farm is suitable in the area considering
such factors as the availability of resources, accessibility to the potential customers,
location cost and the environment of the business which fall under agro industrial
land type as being classified by the DENR.
2. Technical Feasibility

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The assumption on the technical aspect is that there are no available resources
of raw materials needed for the construction of the pigpen. Also, it is expected to
increase the prices of resources and no availability of potential customers in the city.
Despite of these issues at hand, the proponent will make use of the other alternative
resources such as indigenous materials in putting up this project which is available in
the city.
3. Financial Feasibility
On financial aspect, the funding requirement is sufficient enough to since the
business is The assumption on the technical aspect is that there are no available
resources of raw materials needed for the construction of the pigpen. Also, it is
expected to increase the prices of resources and no availability of potential customers
in the city. Despite of these issues at hand, the proponent will make use of the other
alternative resources such as indigenous materials in putting up this project which is
available in the city.
4. Socio-Economics
5. Management

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