Three Years Feasibility Study on

Home-made Chicken Chorizo at

Brgy. Doongan Butuan City.
Chicken Chorizo
• Chorizo (Spanish) or chouriço (Portuguese) is a term originating in the Iberian
Peninsula encompassing several types of pork sausages. Sausage products have been
developed and produced for centuries in regions with moderate climates around the
world
• This fermented chorizo will be conducted at P-16 Upper Doongan, Butuan City in our
very own house where we have a little process room for making fermented chorizo.
• In Nineteenth Centuries when the development of meat products is reach, not just
focusing in pigs meat
• Lean meat from a variety of animal sources such as cattle, pigs, horses, donkeys, camels,
sheep, goat and chicken.
• Their characteristic properties (tangy flavour, in most cases chewy texture, intense red
curing colour) through fermentation processes.
• Traditionally, the fabrication took place during the cold season, as
relatively low temperatures are required for fermentation, drying and
ripening.
• The processing of raw-fermented sausages is dominated by biological
and biochemical processes and raw meat materials of excellent
hygienic quality are a precondition for the correct functioning of such
processes.
Marketing
• The total population of Doongan, Butuan City as of May 2010 is 10,
689. I assume that there will 200-300 people a month will buy my
products.
• My strategy is to sell it by doing door to door plan in every houses,
local schools, eatery store, etc. as much as I could to be able to sell
my product.
• By doing those I can assure that every day there always be a buyer.
 Financial Aspects
Table 1. Direct Materials
Description Quantity Unit Unit Price Total Cost
Chicken (Boneless) 4 kl 165 660
Fats (Chicken) 6 kl 40 240
Brown Sugar 2 kl 41 82
MSG (Monosodium 1 Sachet 10 10
glutamate)
Table Salt 1 Sachet 5 5
Extender/TVP 1 kl 75 75
(Textured Vegetable
Protein)
Accord (Food Additive) ¼ kl 30 7.5

Prik ¼ mg 15 3.75
Garlic ¼ kl 20 5
Black Pepper 1 sachet 20 20
Ginisa Mix 1 Sachet 10 10
Subtotal 1,118.25
 Table 1.1 At 0.5% (0.005), direct materials are
increasing per year.
Description Quantity Unit Unit Price Year Number

1 2 3

Production 144 days 1118.25 161,028 241,542 362,295

 Table 2. Indirect Materials
Description Quantity Unit Unit Price Total Cost
Electric Grinder 1 Pc 11,000 11,000
Weighing Scale 1 Pc 500 500
Hairnet 1 Pack 285 285
Disposable Gloves 1 Pack 92 92
Mask 1 Pack 100 100
Steel Bowl 1 Pc 300 300
Basin 1 Pc 500 500
Cellophane 4 Pcs 36 144
(Wrapping)
Cellophane (Packing) 1 Pcs 30 30
Refrigerator 1 Pc 12,000 12,000
Sealer 1 Pc 379 379
Funnel 2 pcs 50 100
Subtotal 25,430
 Table 2.1 Depreciation (Indirect Materials)
Description Quantity Unit Price Total Cost

Annual Monthly Weekly Daily Production

Electric Grinder 1 11,000 11,000 3,6667 3,055.59 763.89 254.63 6.36

Weighing Scale 1 500 500 166.067 13.83 3.45 1.15 0.028

Hairnet 1 285 285 95 7.97 1.99 0.66 0.0165

Disposable Gloves 1 92 92 30.67 2.55 0.63 0.21 0.5

Mask 1 100 100 33.33 2.77 0.69 0.23 0.002

Steel Bowl 1 300 300 100 8.33 2.083 0.694 0.0017
Basin 1 500 500 166.67 13.88 3.47 1.15 0.00289
Cellophane 4 36 144 48 4 1 0.33 0.0001
(Wrapping)
Cellophane 1 30 30 10 0.83 0.200 0.69 0.001
(Packing)
Refrigerator 1 12,000 12,000 4000 333.33 83.33 27.78 0.69

Sealer 1 379 379 126.33 10.52 2.63 0.87 0.0021

Funnel 50 50 16.67 1.389 0.34 0.115 0.00012
Subtotal 25,380 8,426.107 3,454.989 863.703 288.509 7.60
 Table 3. Operational Expenses
Item Quantity Unit Cost/Month Cost/Week Cost/Day Cost/Annual

Water 1 Month 150 37.5 12.5 1800

Electricity 1 Month 500 125 41.6 6000

Subtotal 650 162.5 54.1 7800

 Table 4. Labor Expenses
Description Quantity Salary Cost/Day Cost/Week Cost/Month Cost/Year

Packer 1 350 350 700 5,600 67,000

Subtotal 350 350 700 5,600 67,000

 Table 5. Total Expenses
Year no. Direct Materials Indirect Materials Operational Expenses Labor Expenses Total

1 25,430 288.50 7800 67,000 100,518.5

2 25,442.715 288.50 7800 67,000 100,531.21

3 25,455.43 288.50 7800 67,000 100,533.93

 Table 6. Total Income
Year no. Production Produce Price of Income Total Expenses Net Income
Produce

1 96 40 50 192,000 100,518.5 91,481.5

2 96 40 50 192,000 100,531.21 91,468.79

3 96 40 50 192,000 100,533.93 91,466.07

Grand Total 576,000 301,583.64

Net Income 274,416.36

Total
Return of Investment

Year 2 Year 3

90.98 90.98