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Chapter I

INTRODUCTION

Livestock farming is one of the most common and most in demand business

in the Philippines today. The livestock sector is made up of farmers, the processing

industry and buyers. They must themselves find ways to make livestock production

more sustainable. Supermarkets and other retailers have a decisive role to play.

Demand from shops for sustainable products is rising, and this is leading more

farmers to produce sustainably. It requires knowledge and skills in order to

succeed in this field. Thus, interest, capital, ability to manage the project and the

demand for the product in the locality is taken into consideration. One of the

livestock raising industry is poultry. It can be specialized into egg production,

chicken breeding, and raising broilers for meat production. It has been a popular

and lucrative job due to the increasing demand from the emerging business and

increasing population.

This feasibility project is primarily focused on the poultry production

specifically the 45 day broiler meat production. This business, the Call-Me-Chix

Poultry Business, will be engaged in raising and selling good quality dressed

chicken and its by-products such as intestine, liver, feet, head, neck and gizzard.

It will serve the demand of poultry meat in General Nakar and its neighboring town

which is Infanta. It’s main target are the restaurants, canteens at the two towns.

And if possible, in the near future we will also be the supplier at the newly founded

branch of Jollibee in Infanta, Quezon.

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Chapter II

SUMMARY OF THE STUDY

NAME OF THE FIRM

The Proposed Project Name is “Call-Me-Chix Poultry”. The proponents had came

up to this name because the owner’s last name is Calleja and the products are

chicken. And it will be a big help to one business if it’s name is catchy and easy to

remember that’s why it became “Call-Me-Chix”.

LOCATION OF THE BUSINESS

The Poultry Farm will be located at the Minahan Norte, General Nakar, Quezon. It

has an easy access to transportation, electricity and water supply. In this place,

the water is free so it will be a big help for the owner in terms of saving. There is a

built-in well in the site which can be used in maintaining the cleanliness of the

poultry farm. The location is surrounded by the trees which helps the chickens

avoid stress which is cause of too much heat of sun. The location is also near to

schools, event venues, resorts and restaurants.

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BRIEF DESCRIPTION OF THE PRODUCT

The business is a sole proprietorship owned by Mr. Marvin A. Calleja. Call-Me-

Chix Poultry is engage in growing broiler and producing chicken meat. It will focus

on selling the Best Dressed Chicken and its by-products with its superior taste and

texture. The business will cater the unfilled demand of dressed chickens and its

by-products in the market. The demand and supply of the project is based on the

survey that was conducted. The price will be based on the prevailing market price

of the product. To attract prospective buyers, streamers will be put up and fliers

will be distributed in public places. Word-of-mouth will also be a good way to

introduce the product. The products will be distributed through delivery which will

be scheduled before the market days of General Nakar and Infanta. Walk-in

customers will also be accommodated. The target markets are business

establishments such as restaurants, meat shops, barbeque stalls, roasted chicken

food stall and food catering businesses.

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Chapter III

PROPONENT, MANAGEMENT AND PERSONNEL

PROPONENT

The business is a sole proprietorship owned by Mr. Marvin A. Calleja. Call-Me-

Chix Poultry is engage in growing broiler and producing chicken meat. It will focus

on selling the Best Dressed Chicken and its by-products with its superior taste and

texture.

MANAGEMENT

The business will adopt a sole proprietorship type of organization where the owner

will also be the manager. This form of organization is chosen because it is easy to

establish.

ORGANIZATIONAL CHART

Owner / Manager

Caretaker/ Operational
Maintenance Staff/ Driver

Operational Staff

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PERSONNEL AND WORKFORCE

Call-Me-Chix Poultry will have three employees in the operation and management

The owner will be the manager and the bookkeeper. There will be three staffs that

will help in the operation of the business.

Owner/Manager is responsible for the production and business management.

Supervise the daily operation. Purchase chicks, feeds and other necessities for the

rearing of chicks. Accepts orders. Receive payments from the customers and

issues official receipts. Pays the bills. Acquire assets. Approves the credits of

customers. Negotiate with the customers concerns. Responsible for the

bookkeeping. Renew the licenses and permits. Pay premiums of SSS and Phil

health. Approves transactions related to the business. Hires and fires employees.

Caretaker/Maintenance will replenish food and water for the chickens on daily

basis. Administer the vaccination of the chicken. Clean the cages, office and the

surroundings of the poultry farm. Administer the vaccination. Operational Staff

Responsible for the purchase, loading and unloading of 2,000 chicks. Responsible

for the weighing, bleeding, scalding, evisceration, cleaning and refrigeration of the

product. Administer the delivery of the customer’s orders.

Operational Staff/Driver is responsible for the purchase, loading and unloading

of chicks. Drive the delivery truck. Responsible for the weighing, bleeding,

scalding, evisceration, cleaning and refrigeration of the product. Administer the

delivery of the customer’s orders. Check the condition of delivery truck regularly.

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CHAPTER IV

MARKET FEASIBILITY

MARKET DESCRIPTION

Call-Me-Chix Poultry will raise 45 days broiler chickens with a target weight of 1.6

kilo each. Broiler chicken are day old chicks that typically have white feathers and

yellow skin which become full grown broilers at an average of 45 days. The

business will produce dressed chickens that are fresh and well-cleaned. Aside

from the dressed chicken, the business will also offer its by-products such as

gizzard, liver, intestines, feet, head and neck.

SUPPLY AND DEMAND

Call-Me-Chix Poultry primarily targets to supply business establishments such as

restaurants, meat shops, barbeque stalls, roasted chicken food stall and food

catering businesses in the municipality of General Nakar and Infanta. Moreover,

the demand of dressed chicken in the market of General Nakar is 3,000 kilograms

per week. There are two existing competitors namely Pepot’s Manok located at

Banugao, Infanta, Quezon which produces almost 1,000 kilograms of dressed

supply chicken every week or 4,000 kilograms a month. and Ato’s Poultry at

Anoling, General Nakar which produces 1,200 kilos of dressed supply chicken

every week or 4,800 kilos a month.

The business will cater the unfilled demand of dressed chickens and its by-

products in the market. The demand and supply of the project is based on the

survey that was conducted.

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Schedule 1 – Demand Per Week (Kilograms)

Minimum Maximum

1-5 2 2 10

6-10 7 42 70

11-15 11 121 165

16-20 2 32 40

21-25 1 21 25

12 2,208 2, 208

35 2,400 2, 500

TOTAL: 2,400

Schedule 2 – Demand and Supply per Week and Unmet Demand (Kg)

Total demand by consumer per week

Schedule 1 2,400

Total Supply by the competitors per week:

Ato’s Poultry 1,200

Pepot’s Manok 1,000

Less: Total Supply per week 2, 200

Total Unmet Demand 1375

Market Share 12% X12%

Total Captured Market Per Week 96

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PROPOSED MARKETING PROGRAM

In order to be competitive, the products will be sold based on market price

in General Nakar and Infanta. The average inflation rate of dressed chicken and

its by-products is 5% (Philippine Statistics Authority, Quezon). The regular

seasons of dressed chicken and by-products are January, February, June, July,

August, September, October and November while the peak seasons are March,

April, May and December. The products are listed below with their respective

market price per kilo. The products will be distributed through delivery. The market

days in General Nakar and Infanta are Wednesday and Sunday. Prior to the

market days, there will be a scheduled delivery every Tuesday and Saturday using

the delivery vehicle

The promotional strategies to be used by Call-Me-Chix Poultry are through

word of mouth, placement of streamers and distribution of fliers. The streamers will

be placed at the municipal plaza of General Nakar and Infanta, public market and

in front of the poultry farm two weeks before opening of the business. The fliers

will be distributed to the business establishments such as restaurants, meat shops,

barbeque stalls, roasted chicken food stall and food catering businesses in

General Nakar and Infanta as well as the by-passers in the public market two

weeks before the opening of the business.

PROJECTED SALES

Based on the survey, the unmet demand for dressed chicken in a week is 800 kilos

or 3,200 kilograms in a month. The projected sales for the first year of operation is

P 4, 608,000. The projected annual growth rate for dressed chicken and its by-

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products is 8% and the inflation rate of prices is 5% (Philippine Statistics Authority,

2018).

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CHAPTER V
PRODUCTION FEASIBILITY
PRODUCT

Call-Me-Chix Poultry grows and produces dressed broiler chicken. Broiler chicken

is a specialized breed of chicken intended to grow approximately 45 days, the best

breed of chicken to raise for meat production. Dressed chicken will only be sold in

whole and specific prices will be placed on its by-products. The business will focus

on selling the Best Dressed Chicken and its by-products with its superior taste and

texture. The major consumers of the product will be restaurants, market, various

institutions with food catering services, and high income households.

Products Description

Dressed Chicken It is a processed chicken.

Intestine It is a long tube in the body of the chicken.

Liver This is the largest organ of the chicken. It is a dark brown part internal organ

of the chicken.

Feet These contain relatively little meat, and are eaten mainly for the skin and

cartilage.

PRODUCTION PROCESS

The chicks will be provided with numerous drinking bowls since they easily get

thirsty, especially in hot weather. It will also help them to learn quickly how to drink.

These will place be in bright places so they can be easily found and accessible to

approach. The source of water will be from the General Nakar Water District.

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OPERATIONAL PROCESS

PURCHASE REARING DRESSING DISPOSAL

Price canvass of Set up ( feeders, Fating of chicken Customer

one (1) day old waterers, for four (4) to eight

chick artificial (8) hours

brooders and Purchase Take


customers order
Supplier ventilation) order

Weighing of

Purchase of (1) Chicks chicken

one day old

chick
Arrival and
unloading of Stunning/
chicks Bleeding
Payment and

receipt of chick
Feeding and
giving of water
three (3) times a Scalding and
day removal of
feathers under
controlled heat
(60)

Vaccination

Evisceration/
Removal of
internal organs

Washing/ cleaning
of products

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Feeding Schedule

Age of Type of Consumption Cost per Total cost

chicks in feeds sack per 800 Supplier

days chicks

0 – 14 Chick 3 sacks/800 P1, 350.00 P4,050.00

Booster heads

15 – 28 Broiler 4 sacks/800 P1,500.00 P6,000.00

Starter heads

29 - 45 Boiler 4 sacks/800 P1,250.00 P5,000.00

Finisher heads

Light

In the first week, the chicks will be given enough light to enable them to keep

eating. For the first three (3) days, flocks are usually expose 23 hours of light and

one hour of darkness to allow for adjustment to their surroundings and for finding

feed and water. The hour of darkness adapts the flock to darkness and prevents

later piling in case of electrical failure. Light duration is then controlled from day

four to five or six weeks, depending on target weight and duration of grow out.

Age Of Chicks In Days No. Of Hours In Light No. Of Hours In Dark

0–3 23 1

4–7 18 6

8 – 14 14 10

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15 – 22 16 8

23 - 28 18 6

29 to market age 22 2

Temperature

Chick’s temperature is 38.60C and becomes 40.5 0C in 7 days. The coop

temperature must be 310C – 350C in the first day and this is lowered by 30C at the

end of the first week. After this, temperature is maintained at 210C - 240C.

Age of chicks in days Brooding temperature 0C

0 -7 31 – 35

8 – 15 27 – 31

15 – 27 21 – 24

28 - 45 Remove the supply of heat

Vaccination Program

The broiler chickens will be vaccinated in order to prevent them from diseases

such as New Castle Disease and Infectious Bursai Disease. The NCD Vaccine is

administered on the 7th and 17th day of the chick. One drop of vaccine in the eyes

or one drop in the nostril is given. Care should be taken not to release the chick

until it has inhaled the nasal drop and/or blinked its eye. The IBD Vaccine is mixed

with water on the 7th and17th day of the chick. This is performed to prevent the

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increase number of mortality of chickens. Vaccine Schedule Cost per Head New

Castle Disease Vaccine 7 days old P 1.50 P 2.00

Vaccine Schedule Cost per head

New castle Disease 7 days old P 1.50

Vaccine P 2.00

New Castle Disease

Vaccine P 1.50
17 days old
Infectious Bursai P 2.00

disease Vaccine

PLANT LAYOUT

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BUILDING AND FACILITIES

Land Delivery the owner has an available land and delivery vehicle to be used for

the entire operation. The land has an area of 300 square meters which is enough

to put up a poultry farm. The building costs P 80,809.00.

Equipment, Supplies and Furniture and Fixtures

Particulars QTY. Unit Cost Estimated Total Cost

Unit Useful

Life

Operating Equipment

Knives 3 Item P130.00 5 P390.00

Weighing 2 Item 1,980.00 5 3,960.00

Scale (60 kilos)

Kawa 1 Item 2,900.00 5 2,900.00

(extra size)

Plucker 1 Item 19,000.00 10 19,000.00

Artificial 5 Item 150.00 5 750.00

Brooder

Freezer 2 Item 15,000.00 7 30,000.00

Chopping 2 Pieces 350.00 5 700,000.00

Board

Waterers 25 Pieces 110.00 5 2,750.00

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Shovel 2 Pieces 450.00 5 900.00

Bucket 5 Item 250.00 5 1,250.00

Tub/ Basin 10 Item 260.00 5 2,600.00

Generator 1 Item 15,000.00 10 15,000.00

Total Operating Equipment P82, 395.00

Office Equipment

Calculator 3 Item 465.00 5 1,395.00

Stapler 2 Item 40.00 5 80.00

Total Office equipment P1,475.00

TOTAL COST OF EQUIPMENT P83,870.0

Operating Equipment Description

Knives- A sharp edge equipment for cutting. It is used in cleaning the chicken.

Weighing Scale- A measuring device used to weigh live and dressed chicken.

Large Pan (Kawa) – A large piece of cookware used for boiling or roasting foods.
It will be used in the scalding procedure to help soften the feathers.

Plucker - An electric equipment with rubber fingers that enables easy feathering of
20 the chicken.

Artificial Brooders – It is a 120 watts capsule which is used to supply heat to the
chicks in the brooding house from day old to 2 weeks. This is in the form of electric,
kerosene lamp or aid of charcoal.

Freezer - A cooling equipment used in freezing the clean chicken that is ready for
delivery.

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Chopping Board – It is a durable board made of wood or plastic and come in
various widths and sizes. It will be used as a place material for cutting the chicken.
Waterers – It is an inverted vessel that is used as drinkers. It is a semi-circular,
fairly wide and supported by an additional bracket to permit easier adjustment and
easy cleaning.

Shovel - A tool used for digging and cleaning the poultry house.

Wheelbarrow- It is cart that bring items from one place to another. It will be used
to carry the feeds and manure of chickens.

Bucket - It is a container used in getting water and cleaning the poultry house.

Tub/Basin- It is an open usually circular vessel with sloping or curving sides used
typically for holding water or other materials. This is where the chickens are placed
after cleaning.

Generator – It is a machine used to supply electricity.

Labor Requirements/ Manpower

Call – Me – Chix Poultry Business will have three employees in the operation and

management of the business. The displayed salary is based on Provincial Rate

Description No. Monthly Salary

Owner/ Manager 1 P8,080.00

Caretaker/ Maintenance 1 6,012.70

Operational Staff 1 6,529.50

Operational 1 7,286.00

Staff/ driver

TOTAL 4 27,908.00

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WASTE DISPOSAL

In order to make the project environment friendly it needs proper disposal of waste.

In connection with this, the project must have a compost pit, about 2 meters wide

and 2 meters deep. The compost pit will be the dumping site of the waste of

chicken which shall be covered to minimize the spreading of odor.

Fiscal and Legal Regulations the business, in order to start its operation, needs

several permits such as DTI permit and Mayor’s Permits. These permits are

renewable annually.

List of Permits Amount

Annual Registration (BIR) P 500

DTI 300

Mayor’s Permit 2,000

Business Clearance to Operate 30

Police Clearance 75

Sedula 22

Fire Clearance 50

Sanitary Permit 125

Environment Compliance Certificate 500

(DENR)

TOTAL P3, 602

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CHAPTER VI

FINANCIAL FEASIBILITY

TOTAL PROJECT COST

Total project cost is P810,000 pesos only. Depreciation expense is computed

using Straight-line Method. The source of financing will be 25% bank loan and 75%

owner contribution. The collateral for the loan in the bank is the land title of the

owner. Utilities and office supplies will increase at 4.68% every year (Philippine

Statistics Authority). Feeds and vaccine consumption will increase at 4.68% every

year (Philippine Statistics Authority). Mortality rate is 2% every batch (Department

of Agriculture). Working capital period is 3 months.

Total Project Cost Property, Plant and Equipment is P 583,978.00.

Total Project Cost

Property, Plant and Equipment (Schedule 3) P 583,978.00

Working Capital (Schedule 4) 218,370.00

Pre-Operating Cost (Schedule 5) 7,652.00

TOTAL P 810,000.00

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FINANCIAL ASPECT

Basic Financial Assumptions


1. Selling price of dress chicken and its by-product will increase annually by 5%

(Philippine Statistics Authority).

2. Annual growth is 8% (Philippine Statistics Authority).

3. The total project cost is P810,000 pesos only.

4. Depreciation expense is computed using Straight-line Method.

5. The source of financing will be 25% bank loan and 75% owner contribution.

6. The collateral for the loan in the bank is the land title of the owner.

7. Utilities and office supplies will increase at 4.68% every year (Philippine

Statistics Authority).

8. Feeds and vaccine consumption will increase at 4.68% every year (Philippine

Statistics Authority).

9. Mortality rate is 2% every batch (Department of Agriculture).

10. Working capital period is 3 months.

RETURN OF INVESTMENT

ROI is a performance measure used to evaluate the efficiency of an

investment or to compare the efficiency of a number of different investments. The

higher the return on ROI of a project, the greater the profit earned per peso

invested in the operating assets.

The return on investment of the project for the first year is 24.26%. This

means that there is high profit earned per peso invested in the project.

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Net Income Per Year

Year 1 196,492 24.26%

Year 2 336,750 41.57%

Year 3 344,506 42.53%

Year 4 560,322 69.18%

Year 5 633,696 78.23%

Total 2,071,766

Divide by 5 years 5

Average net Income 414,353

Divide by project cost 810,000

ROI 51.5%

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CHAPTER VII

CONTRIBUTIONS TO THE PHILIPPINE ECONOMY

CONTRIBUTION TO THE GOVERNMENT

The Government will benefit on the taxes and permits paid by the business. These

taxes and permits increased the revenue of the government. They use this fund to

support its projects and expenditures for the development of the municipality as

well as the whole country.

CONTRIBUTION TO THE GROWTH OF RELATED INDUSTRIES

Customers/Consumer Benefits

The customers will have sufficient supply of dressed chicken and its by-products.

The wholesalers and business establishments such as restaurants, meat shops,

barbeque stalls, roasted chicken food stall and food catering businesses will have

convenience in getting their supplies with lesser time, cost, effort and price

Employment Benefits

The business will provide additional employment for the unemployed residence

especially in the town of General Nakar

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CONCLUSION

The proposed project is feasible because the results of the study are in conformity

with the objectives of the project which is to promote convenient distribution of

dressed chicken and its by-products for consumers’ consumption, retailers and

other food establishments to satisfactorily avail their needs. In the socio-economic

and environmental impact, part of the revenue of the business will support the

project of the government in the form of taxes paid; it will be also be beneficial to

the hired workers of the business for the improvement of their standard of living

through salaries and wages. In relation to its technical and operational aspects, an

encouraging result is obtain. The business is located in a proper place for raising

chicks. The workers employed are also qualified and the equipment used are

modernized. In respect to its organization and management aspect it shows sign

of positivity. The proponent’s interest is in the field of business, thus, it is a sign

that she can handle the proposed business well. The business will be easily

managed and supervised by the owner since she will only hire three workers to

help him in the daily operation of the business. The financial aspect also shows a

positive result, the first five years of operation is expected to generate enough

revenue to cover all the expenses incurred and at the same time generate profit

for the owner. The proposed business will be able to fully return the initial

investment within 2.61 years. To sum it all, based on the analysis and the results

of the data gathered, putting up Call-Me-Chix Poultry in General Nakar, Quezon is

favorable.

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RECOMMENDATION

The researcher of this feasibility study recommends that the business can opt to

use a credit system in the sales transaction, in addition to the cash basis system

currently used. Moreover, if the business becomes profitable and the proponent

wants to continue the operations of the business after five years, she can decide

to reconstruct the building from using light materials into concrete in order that the

structure will be usable for a longer period and for a more efficient and suitable

place for operation. Lastly, as the business grows, the manager can hire

employees in addition to the existing staff for a more effective operation. These

include the operational staff and caretaker/maintenance.

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