Chapter 1

Summary of the Project

I. Name of the Firm

The Project is named “Chickcharap Poultry Farm”. The term “Chickcharap” is a catchy term

for our product which is high quality chicken. This is an expansion project of Era Store and

Poultry Supply.

II. Location

The project is located at Igbaras, Iloilo. It is far from residential areas and is within the

agricultural zone which is suitable for the construction of a poultry farm.

III. Brief Description of the Project

The firm is engaged in selling live broiler chickens in the wet markets in the first district of

Iloillo. The firm exercises the competitive market strategy.

IV. Project Summary

1. Market Feasibility

The business will cater the vast demand of broiler chickens in the market of the first

district of Iloilo. The demand and supply of the project is based on the data provided by the

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 Department of Agriculture. The price will be based on the prevailing market price of the product.

To attract prospective buyers, tarpaulins will be posted on some parts of San Joaquin, Miag-ao,

Igbaras, Tigbauan, Tubungan, Guimbal and Oton and fliers will be distributed in public places.

Word of mouth will also be a good way to introduce the product. The product will be distributed

through delivery every time there is an order placed by the chicken vendors in any of the public

market in the first district of Iloilo. The target markets are chicken vendors from San Joaquin,

Miag-ao, Igbaras, Guimbal, Tigbauan, Tubungan and Oton.

2. Technical Study

The business will be engaged in raising chicks until they are ready for distribution in the

market. Theses broiler chickens will be primarily used for human consumption.

The proposed project is located in Igbaras, Iloilo which is a place that is far from

residential areas and is within the agricultural zone that is suitable for the construction of a

poultry farm.

3. Management Study

The management study includes the form of business organization, organizational

structure, man-power requirements and compensation, the organization policies and legal

requirements.

The business was organized under a sole proprietorship form of business organization

and has 9 employees consist of general manager, production officer, 5 farm personnel,

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 bookkeeper and custodian in its operation. The employees will receive salary and benefits based

on what is mandated by law and stated in the organizational policy of the business.

The business develops an organizational policy that is composed of policies in operations,

hiring and human resource management to achieve systematize organization.

4. Financial Study

The owner will invest on the entire amount needed to start the business. The source of

fund will be the excess cash of the Era Store and Poultry Supply.

5. Socio-economic Impact

The project aims to contribute benefits to the people of Igbaras, Iloilo because it will hire

their staffs who are residents of the local area. It will generate additional income to the

government through paying taxes and in complying the permits needed in the operation of the

business. It will also increase the supply of live broiler chickens in the market.

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 CHAPTER 2

Introduction

2.1 Brief Background of the Study

Era Store was established in the year 2003 by Era Family as a small retail store. After 7

years of operation, it ventured to another segment, the agri-business. In the year 2010 Era

store prioritized its operation in agri-business because most of the people living in Igbaras are

farmers. Since farming is the major source of income in that area Era Store can attract more

customers with this line of business. Aside from that it can help the community by making

their agricultural needs accessible to them at a minimum price.

Era Store has the following vision and mission.

Vision

A leader in agribusiness in the Municipality of Igbaras by 2020.

Mission

Era Store is manned by team player employees committed to provide reasonably priced

agricultural products that would catalyzed productive livelihood projects to Igbarasnon

community.

As of June, 2016, the financial position of Era Store reveals that, its cash and cash

equivalent was 894,792.51, account receivable was 122,208.31 and its inventory was

921,705.21. It has total assets of 3,873,806.03, 90% of this is the claim of the owner and only

10% is the claim of the creditor. Based on the forecast of Era Store management, the store

will be accumulating more than 1,000,000 cash by the end of 2017. This more than 1,000,000

cash is already the excess cash of the store after financing its entire operation for the year.

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 Due to this presumption the store decided to go into vertical integration. Since the store is

providing poultry supplies, the owner decided to put up poultry raising business to augment

its income. Thus, a need for a feasibility study arises.

2.2 Objectives of the Study

General Objective

This study aims to determine the feasibility of a chicken growing business in the first

district of Iloilo.

Market Objective

To be able to attain at least thirty percent of the market share of chicken growers in the

first district of Iloilo.

Technical Objective

To be able to produce best quality and adequate quantity of chickens with less cost of

production needed.

Management Objective

To be able to have excellent workforce and systematize organization that renders

productive labor and control of chicken growing process, respectively.

Financial Objective

To be able to achieve at least eleven percent return on investment on the first year of

operation and raise it by at least three percent annually

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2.3 Operational Definition

To make the study comprehensible, definitions are provided for each of the variables of

the study. These variables were defined operationally to explain how such variables were used in

the study.

Adequate Quantity

In this study, it is defined as the number of products the client desires in order to be

satisfied.

The business will produce chickens that weigh an average of 78,000 kilos annually which

will be enough to cater the demand on chickens within Iloilo City

Best Quality

In this study, it is the highest state of quality that the chickens could attain in accordance

to what the customer desires. The chicken must be in a rectangular shape which indicates good

conformation, must have well-developed and rounded even muscles that indicates the flesh or

meat the chicken carries, must contain less fat in and under the skin for tastier meat and must be

free from diseases for healthy consumption of the customers. It must weigh 1.3 to 1.5 kilograms.

Chicken Growing Business

In this study, it is a business that facilitates the overall growth of chickens-from the

moment the chicks were received up to the end of the process. It performs various control of the

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operation to ensure the quality and quantity of the product and to reach the expectations of the

clients, which will then satisfy them.

Cost of Production

In this study, it is the total amount used by the business throughout the chicken growing

process.

Excellent Workforce

In this study, it refers to the man power of the business that is composed of workers who

are flexible and can perform multi tasking function. They are given seminars on how to properly

raise chickens.

Market Share

In this study, it is the percentage share of Chickcharap Poultry Farm in the total market

of chicken growers in Iloilo City.

Systematize Business

In this study, it is defined as a business that is composed of people who work as one and

know each of their specific responsibility.

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 Target Market

In this study, it is defined as the possible clients to whom the business wants to offer its

product.

2.4 Scope and Limitations of the Study

The study focused on the distribution of broiler chickens to the residents of the first

district of Iloilo. The researcher started gathering data on May, 2016 by interviewing some

chicken vendors in the market and an owner of a poultry business. The researchers also gathered

data with the help of the web and internet. They also asked data information from Department of

Agriculture. This study is limited only in raising chicks and distribution of live broiler chickens

to the public markets of the first district of Iloilo namely: San Joaquin Public Market, Miag-ao

Public Market, Guimbal Public Market, Igbaras Public Market, Tubungan Public Market,

Tibauan Public Market and Oton Public Market.

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 CHAPTER 3

Market Study

3.1 Objective of the Study

To be able to attain at least thirty percent of the market share of chicken growing in the

first district of Iloilo.

3.2 Methodology

This study provides a descriptive research type in gathering data. The researchers used

Stratified Random Sampling which involves the division of a population into smaller groups

known as strata. In stratified random sampling, the strata are formed based on members' shared

attributes or characteristics. The researchers chose seven chicken vendors in the markets of the

first district of Iloilo specifically San Joaquin Public Market, Miag-ao Public Market, Guimbal

Public Market, Igbaras Public Market, Tubungan Public Market, Tigbauan Public Market and

Oton Public Market. The descriptive method is applied to each respondent. They were given

questionnaires to answer and they have also answered questions through personal interview.

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3.3 Demand

3.3.1 Consumption for past years in the First District of Iloilo

Kilos of Chicken Rate of Rate in

Year Sold Increase/Decrease Increase/Decrease
in Percentage

2011 234,056 - -

2012 238,736 4,680 1.9995%

2013 243,512 4,776 2.0005%

2014 248,380 4,868 1.9991%

2015 253,348 4,968 2.0002%

3.3.2 Major Consumer of the Product and Services

The target markets of this product are vendors in the public market of the First District of

Iloilo. Specifically vendors from the following:

San Joaquin Public Market Tubungan Public Market

Miag-ao Public Market Tigbauan Public Market

Guimbal Public Market Oton Public Market

Igbaras Public Market

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 3.3.3 Projected Demand in the First District of Iloilo

Year Kilos of Chicken Rate of Increase in

Percentage
2017 257,402 -

2018 261,520 1.60%

2019 265,704 1.60%

2020 269,955 1.60%

2021 274,274 1.60%

The Demand for the past years is increasing by an average of 1.60%.

3.4 Supply

3.4.1 Supply for the past years in the First District of Iloilo

Year Kilos of Chicken Rate of Rate in

Available Increase/Decrease Increase/Decrease
in Percentage
2011 342,544 - -

2012 363,284 20,740 6.0547%

2013 379,308 16,024 4.4109%

2014 337,344 (41,964) (11.0633%)

2015 344,092 6,748 2.0003 %

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3.4.2 Projected Supply in the First District of Iloilo

Year Kilos of Chicken Rate of Increase in

Percentage
2017 345,055 -

2018 346,021 .28%

2019 346,990 .28%

2020 347,962 .28%

2021 348,936 .28%

The Supply for the past years is increasing by an average .28%

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3.5 Demand and Supply Analysis, Demand and Supply Gap

3.5.1 Projected Sales Annually

Year Quantity Price Total

2017 77,221.3kilos P 94 per kilo P 7,258,802.20

2018 78,456.3kilos P 97 per kilo P 7,610,261.10

2019 79,712.1kilos P 100 per kilo P 7,971,210

2020 80,987.4kilos P 103 per kilo P 8,341,702.20

2021 82,282.2kilos P 106 per kilo P 8,721,913.20

Total Sales 398,659.3kilos P 39,903,888.70

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 Vision

To be the first choice for quality chicken while providing customer satisfaction in 2021.

Mission

The mission of Chickcharap is to carry out an exemplary performance in raising finest

quality chickens while creating good relationship between its customers and employees thus

developing continuous business innovations by enhancing products and service quality in order

to maintain our commitment to the sustainable development of the environment.

3.6 Marketing Strategies/ Marketing Programs

The marketing program is consists of the marketing mix specifically the 4p’s (Product,

Price, Place and Promotion).

PRODUCT

This business will be engaged in selling high quality broiler chickens to residents of the

first district of Iloilo. High quality means that the chicken is free from any diseases like fowl

cholera, infectious bronchitis, moniliasis and the like. Other characteristics of a good quality

chicken are it is free of disjointed or broken bones, well developed and well distributed layer of

fat in the skin and it is free of pinfeathers, exposed flesh and discolorations.

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BRAND

Chickcharap’s tag line which says “Quality at its finest” gives a great advantage to

attract and be remembered by customers. It can be seen in the logo that the chicken is standing

tall showing its confidence that it is a best-quality chicken.

PRICING

This Institution is applying competitive pricing policy but the owners are

considering also the expenses incurred such as the cost of the chick when bought, transportation,

labor, maintenance, and other related costs. Competitive pricing policy is based on the prevailing

price in the market. Chickcharap is an organized producer that forms associations or market

cooperatives that exercise bargaining power with regard to their selling prices. Through this, the

business strengthens its customer relation. The prevailing market price of chicken last 2012,

2013 and 2014 is P 82.00/kilo, P 85.00/kilo and P 88.00/kilo respectively, and its current market

price for the year 2015 is P 91.00/kilo.

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PLACE

These broiler chickens are transported through trucks or L300 from Igbaras, Iloilo (the

principal place) to the different areas in the first district of Iloilo, specifically in the public

markets. Igbaras, Iloilo is the place where the poultry is located. The location is ideal for a

poultry farm not only because it is far from residential areas but also it is near in its target market

for easily delivery of the product.

PROMOTION

In terms of promotion, Chickcharap is known to be innovative and creative in advertising

its product with a low cost. Through the use of tarpaulins, flyers and by word of mouth,

Chickcharap Poultry will be able to disseminate information regarding their product and business.

The business will offer its customers a buy 20 kilos get 1 kilo for free.

This is an example of the flyers and tarpaulin that Chickcharap Poultry Farm will

distribute and posted to the public.

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 CHAPTER 4

Technical Aspect

4.1 Objectives

To be able to produce best quality and adequate quantity of chickens with less cost of

production needed.

4.2 Product/Services

Description

Chickcharap Poultry Farm raises and produces live broiler chickens. Broiler is a young

chicken of either sex (straight run chicks) that grows with an average weight over approximately

around 1.3 kgs to 1.7 kgs in about 28-35 days’ time period. These birds are grown in a scientific

way for producing more meat in a short period of time.

The business focuses on selling live broiler chickens because of its desirable

characteristics. Fast growth rate, feed-efficient, fast feathering and disease resistant. These

chickens will be raised specifically for meat production.

Uses

The chickens supplied by the Chickcharap Poultry Farm will be primarily used for human

consumption by the residents in the first district of Iloilo. Other uses of chickens are their by-

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products (chicken manure) which can also be an additional income to the business. These by-

products can be supplied to owners of fish ponds. The chickens that will be supplied by the

poultry farm are healthier and safer to consume compared to other farms. The chickens supplied

by Chickcharap Poultry Farm are disease-free and are considered of high quality chickens

because of the efficient way applied in raising them. Chickens are also considered useful because

of its health benefits. According to United States Department of Agriculture, Chickens are useful

in controlling blood pressure and it also aids in growth and development of muscles. According

to American Heart Association, consumption of chicken instead of red meat lowers risk of

cholesterol and heart disorders.

4.3 Manufacturing Process

Description of the process

This business varies to other poultry because it chose to apply the free-range broiler

farming methods among several farming methods used in the poultry industry. In this method,

broilers are kept like the free-range layers. The broiler breeds which grow slowly are suitable for

raising in this method. The main facilities of free-range farming method are those that allows the

birds scratching, foraging, pecking and outdoor exercise. The business will produce broiler

chickens with the highest quality of meat that are good for human consumption. The stocks are

purchased from a reliable hatchery or dealer where the parent stocks are well housed and well

managed. This method is cost effective.

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 The business also adds quality to its products by means of proper and regular quality

check of the products produced by the farm. The farm provides the chickens with good quality

feeds commercially sourced to assure the quality of the meat.

Chickcharap Poultry Farm will construct three barns of different sizes. Barn A will be

used for the chicks (days) and Barn B and C is for the adult chickens (days). After 7 days, the

chicks from Barn A will be transferred to Barn B and C. After 21-28 days, the chickens from

Barn B and C will be disposed to the consumers and the cycle continues.

4.4 Production Schedule

Activities Time Schedule

Acquiring Chicks Every month

Feeding

Chick Booster Twice a day

Broiler Starter Twice a day

Broiler Finisher Twice a day

Vaccination Every 7th and 17th day

The farm will start its production by buying 3-day old chicks from the supplier. After

buying, the farm will place these chicks in Barn A for 7 days’ time and transfer them to Barn B

and C, and raise for a maximum of three weeks. After 28-35 days of raising these chickens, they

are now ready for distribution.

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 Poultry of all types requires housing that will protect them from the wind and rain and as

well as the bad effects brought by rapid changes in temperature and global warming. The

housing is made up of cement while the walls are made up of bamboo slat so that it will not be

hot for the chickens and the ventilation will be easy.

Chicken raisers also need a break from having to tend the flock every day. By using a

constant feeder, and a hanging water fount, you can leave your birds in the coop or enclosed run

for days at a time without the need to replenish their food or water. This plastic feeder hangs at

head-height for your chickens, making it inaccessible to pests and eliminating the ability of

chickens to stand in their food. To use, simply hang so the feeder is at a similar height to the

chicken’s head. Put feed in the top of the feeder, and it will spill into the outer rim as needed. It

holds 11 lbs of chicken pellets, and features adjustable feed levels.

With a nipple waterer, your chickens’ drinking water is sealed in its container until

needed. When a chick, pullet, or full-grown chicken pecks at the nipple, the water is released for

them to drink, just a few drops at a time. What this means is a cleaner, drier brooder, and

potentially fewer changes for you.

Lighting plays a large role in poultry production. In the first week, the chicks will be

given enough light to enable them to keep eating. The hour of darkness adapts the flock to

darkness and prevents later piling in case of electrical failure. The table below shows the amount

of light needed by the chicken in different number of days:

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 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

15-22 16 8

23-28 18 6

29 to market age 22 2

Light Schedule (Department of Agriculture)

FEEDING SCHEDULE

Age of chicks in days Type of feeds

0-7 Chick Booster

8-15 Broiler Starter

16-35 Broiler Finisher

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Chicken temperature

Chick’s temperature is 35 degrees and becomes 31 degrees in 7 days and lowers by 3

degrees each cycle of a chick.

Age of chicks in days Brooding temperature oC

0-7 31– 35

8-15 27-31

15-27 21-24

28-35 Remove the supply of heat

Vaccination Program

The broiler chickens will be vaccinated in order to prevent diseases such as New Castle

Disease and Infectious Bursai Disease. The NCD is administered on the 7th and 17th day of the

chick. One drop of vaccine in the eyes or nostril is given. The IBD Vaccine is mixed with water

on the 7th and 17th day of the chick.

This is performed to prevent the increase number of mortality of chickens.

These vaccinations are necessary for the broilers to avoid mortality, reduction in weight

gain and reduction in carcass quality. After these vaccinations, necessary check-ups will be given

by the veterinarian.

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4.5 Machinery and Equipment

Equipment/Machinery

Feeder is equipment used for feeding the

poultry birds. Generally, some foods kept in the

feeder and the poultry birds starts eating food

from there. Plastic or metal feeders are used

mostly to feed the chickens. The feeders are kept

neat and clean always to keep the chicken healthy.

The number of feeders in the poultry house is

sufficient according to the number of the chickens.

Water Pipe is equipment used in

supplying water into the chicken cage. Most

commonly used for floor birds, the round water

pipe allows water to flow quickly and easily to

each drinker on the line, providing the chickens

with access to the right amount of water every

time. Clean potable water is being given to the

chickens to ensure its health. The farm will use the

UV resistant thick pipes for heat protection. The

farm will also use a paint that has a sun reflector

and anti-corrosion properties for harsh weather

protection

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 Ventilation Fan is equipment used for

ensuring maximum ventilation in the poultry farm.

It is also an equipment use in reducing the

temperature of the poultry farm during hot weather.

Heater or Brooder is an equipment use to provide warmth and light and to rear the baby

chicks during the first few weeks of life. These

helps to keep the birds warm especially the

chicks when the weather is cold. It also

provides heat to keep day-old chicks warm

during the day and night.

Weighing balances is equipment used

to weigh birds or feed for record and marketing

purposes.

Manual Drinker is equipment used for

supplying water to the chicks during first week of

brooding. The drinkers are washed regularly to avoid

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diseases. This helps in giving probiotics or medicines to the chicks through water.

Water Storage Tank is an equipment that

will be use to provide continuous water supply in

the farm’s watering system. By having continuous

water running through the pipes, the chickens will

have no problem getting the water that they needed.

Truck with cage will be used for transportation

and delivery of chickens to the Farm’s customers.

The cages will protect the chickens from harm

and provide ample space from each other. One of

the farm’s personnel will be assigned as a

designated driver.

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4.6 Plant location, geographic location of competing companies

The barn is located in Igbaras, Iloilo, one of the municipalities in the first district of Iloilo.

The major suppliers of chicken in the first district of Iloilo are from Iloilo City like Cals, Bounty

Fresh, Rex Poultry Supply, Magnolia, etc.

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4.7 Plant size and layout

Chickcharap Poultry Farm has 3 main barns that measure 50x90x36 feet for each barn.

The barn is made up of bamboo slats to provide better insulation to the chickens. It is constructed

within a 1-hectare land.

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4.8 Direct Labor Requirements

The following workers are involved directly in the production of chicken. First are the

farm personnel. Chickcharap Poultry Farm will have 5 Farm Personnel having individual job

designations. Personnel A, B, C, D, and E shall be responsible in taking good care and security

of the chicks in 28-35 days’ time until they are ready for disposal. There will be around 5,000 -

8,000 chickens in the farm. This means that every personnel will be responsible to take good care

of at least 1,000 and at most 1,600 chickens. To encourage the personnel to work effectively, the

farm will offer them a compensation of P1 per chicken that will be disposed under their

supervision.

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 Chapter 5

Management Aspect

5.1 Objectives

To be able to have excellent workforce and systematize organization that renders

productive labor and control of chicken growing process.

5.2 Form of business Organization

Chickcharap Poultry Farm adopts a sole proprietorship form of business organization. It

is owned and managed by Melanie Era-Sullano.

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5.3 Organizational Structure

30
 5.4 Manpower Requirements

Employees No. of Personnel Monthly Salary Total Monthly Salary Total

per employee Yearly
Salary

General 1 P 10,000 P 10,000 P 120,000

Manager

Production 1 P8,500 P8,500 P102,000

Officer

Farm 5 P 7,500 P 37,500 P 450,000

Personnel

Bookkeeper 1 P 8,100 P 8,100 P 97,200

Custodian/ 1 P 8,000 P 8,000 P 96,000

Cashier

Employer Share SSS Contribution PhilHealth Pag-Ibig Contribution

Contribution
General Manager P 736.70 P 100.00 P 100.00

Production Officer P 589.30 P 100.00 P 100.00

Farm Personnel P 552.50 P 100.00 P 100.00

Bookkeeper P 589.30 P 100.00 P 100.00

Custodian/Cashier P 589.30 P 100.00 P 100.00

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 Employee Share Gross SSS PhilHealth Pag-Ibig Net
Monthly Contribution Contribution Contribution Monthly
Salary Salary
General Manager P 10,000 P 363.30 P 100.00 P 100.00 P 9,436.70

Production Officer P 8,500 P 290.70 P 100.00 P 100.00 P 8009.30

Farm Personnel P 7,500 P 272.50 P 100.00 P 100.00 P 7,027.50

Bookkeeper P 8,100 P 290.70 P 100.00 P 100.00 P 7,609.30

Custodian/Cashier P 8,000 P 290.70 P 100.00 P 100.00 P 7,509.30

5.5 Organizational Policy

The business shall employ its personnel, headed by Melanie Sullano, the owner, who will

act as the manager. She possesses the necessary skills in managing poultry production operations

such as leadership and communication skills that are useful in supervising the day to day running

of the business. Her duties shall be comprised of management functions such as planning,

organizing, leading and controlling.

One (1) production officer shall be hired to supervise the production operations of the

business, assigns duties to farm workers and ensures that they are carried out in an efficient

manner and be responsible in achieving the target production performance of the business.

Five (5) farm personnel shall take charge in facilitating the chicken growing process of

the poultry farm. They will ensure that the chickens will be handled properly to achieve the best

quality of the product.

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 One (1) bookkeeper shall be hired to record, analyze and interpret the day-to-day

financial transactions of the business and verify the accuracy of procedures used for recording

these transactions. These contain records of purchases, sales, receipts, and payments.

One (1) custodian/cashier shall be employed to conduct customer’s payment processing

in compliance to the business policies and procedures and submit sales report to the bookkeeper

for checking.

Managerial needs of the project:

The performance and attitude of each of the employees shall determine the success of the

given business enterprise. This portion of the management aspect will provide the different job

analyses on the various employed workers in the business and their corresponding qualifications.

Job Title: Manager

Job Specification:

He/she must be a degree holder of any business course with at least one year experience in

business management.

He/she must be keen to details, critical thinker and with high sense of urgency.

He/she must possess good staff management, leadership and communication skills.

He/she must have knowledge, skill and ability to perform his/her job successfully.

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Job Description:

He/she shall be responsible in monitoring and evaluating business performance.

He/she shall assign each employee his/her duties and responsibilities and ensure that they are

carried out in an efficient manner.

He/she shall be responsible in hiring and terminating employees.

He/she shall lead the business planning and product marketing operations.

He/she shall organize personnel policies, activities and programs directed towards achieving

established business goals.

Job Title: Production Officer

Job Specification:

He/she must hold a degree in Livestock production or Veterinary Medicine, with classwork

including poultry production, or its equivalent.

He/she must have a minimum of three years’ experience working with poultry farmers,

especially on a small scale level in a rural context.

He/she must possess good interpersonal skills and communication abilities.

He/she must be well organized, with the ability to properly record and store data.

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Job Description:

He/she shall make on-site field visits regularly to monitor progress of activities and provide

strategic measures for progress.

He/she shall provide data in support of farm personnel’s submission of reports that will be

indicative of program progress during implementation and to be submitted to the manager.

He/she shall regularly analyze project implementation strategies to identify constraints to

program success and provide timely recommendations.

He/she shall ensure the safety and efficiency of poultry farm operations.

He/she shall enforce workplace sanitation practices to prevent spread of disease and protect the

farm workers.

He/she shall be responsible in managing and motivating the farm personnel.

Job Title: Farm Personnel

Job Specification:

He/she must be at least High School graduate with at least one (1) year working experience of

raising chickens.

He/she must be attentive, meticulous and with initiative.

He/she may or may not be proficient in driving and repairing of delivery truck.

He/she may or may not have driver’s license.

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He/she must be willing for stay-in at the poultry farm.

Job Description:

He/she shall replenish food and water for the chicken on daily basis.

He/she shall maintain the cleanliness of the surroundings of the poultry farm.

He/she shall supervise flock health programs and maintain product quality to customers.

He/she shall secure the safety of the chicken in the poultry farm.

He/she shall administer the delivery of the chickens from the poultry farm to the customer.

He/she shall manage free range poultry operations.

He/she shall report the progress of operation to the production officer.

Job Title: Bookkeeper

Job Specification:

He/she should have an associate’s degree in accounting or business administration.

He/she should have knowledge of bookkeeping and generally accepted accounting principles.

He/she should be well organized, careful, and thorough to avoid misplacement of documents or

files of the business.

He/she should be a person of integrity and honesty.

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Job Description:

He/she shall maintain the accounting records of the business.

He/she shall prepare timely financial statements for each operating period.

He/she shall process payroll in a timely manner.

He/she shall conduct periodic reconciliations of all accounts to ensure their accuracy.

He/she shall calculate and issue financial analysis of the financial statements.

He/she shall prepare, control, balance, and check various accounts using standard bookkeeping

methods.

Job Title: Custodian

Job Specification:

He/she must be a degree holder of any business course with at least one (1) year relative

experience.

He/she must enjoy working with numbers.

He/she must be honest.

Job Description:

He/she shall be responsible in receiving payments of cash or check.

He/she shall issue invoice/receipts, refunds, credits, or change due to customers.

37
He/she shall calculate total payments received during a time period and reconcile this with total

sales.

He/she shall ensure the safekeeping of cash and other cash equivalents.

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Salary, Remuneration, Compensation, Wages scheme

PERSONNEL SALARY WAGES SCHEME EMPLOYEE TYPE

Manager P 10,000 Monthly Full-time

Production Officer P 8,500 Monthly Full-time

Farm Personnel P 37,500 Monthly Full-time

Bookkeeper P 8,100 Monthly Full-time

Custodian Cashier P 8,000 Monthly Full-time

TOTAL P 72,100 Monthly

Payment of salaries/wages will be on the 30th day of every month.

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Organizational Policies:

Operations

The operations of the business will start from 8 o’clock in the morning until 5 o’clock in

the evening including 1-hour lunch break from 12:00nn to 1:00pm. This 8-hour operation runs

from Monday until Saturday. The farm will not accept transactions every Sunday and Holidays.

The business will accept cash and credit payments for chickens purchased. The credit

term that will be applied to the customers who will purchase on account is n/30. This means that

the net amount is due within 30 days after the sales invoice date.

The business will accept customer orders during the days of operation and the delivery of

the chickens will be based on the date that the parties had agreed.

Policies in Hiring

The company will require the applicants to submit documents needed in their job application.

First is the resume that must contain a detailed list of applicants’ work experience and education.

The skills and accomplishments associated with each job the applicants have held should be

described with enough detail to show how they have added value in those specific roles. An

effective resume lays out a summary of qualifications that will push the hiring manager to move

forward toward an interview. Second is the educational background that contains school(s)

attended, degrees, graduation date, certifications, and transcript of records. Third is the

employment history that involves information about applicants’ past employers, locations,

employment dates, position held and employment certificate given upon termination. Lastly is

40
the training/seminar certificates which will serve as evidence that the applicant has already

undergone trainings related to the position and will give his/her the advantage towards others.

Upon hiring a new employee, he/she will be given a probation status. In the duration of

the Probation Period, of about six (6) months, the new employee will be evaluated closely by the

manager about his/her progress and skills as the newly hired employee. If the new employee

shows promise and does well during the probationary time, they are usually removed from

probationary status, and may be given a raise or promotion as well (in addition to other

privileges, as defined by the business).The probationary period also allows the termination of an

employee who is not doing well at their job or is otherwise deemed not suitable for a particular

position.

If the employee was removed from its probationary status and got promoted as newly

hired employee, additional legal documents must be submitted by the hired employee to ensure

that his/her rights as an employee will be implemented and will guarantee that he/she will get the

benefits that he/she is entitled upon. These documents include Social Security System (SSS)

number/I.D, National Bureau of Investigation (NBI) Clearance or Police Clearance, Medical

Certificate and Community Tax Certificate or Cedula. The company will give at most 2 weeks to

process the documents needed before getting started.

Human Resource Management

Bonuses and Benefits:

A Thirteenth (13th) Month Pay bonus shall be given to employees with at least one (1)

year of service. The bonus is equivalent to a one (1) month’s basic monthly salary.

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 The mandatory benefits imposed by the Philippine Labor Code such as SSS, HDMF and

Philhealth will be observed. The mandatory amounts of the benefits will be deducted from the

monthly salaries of the employee as contributions, withheld by the employer.

Employees will also receive Birthday Cash Gift, Healthcare Assistance and Retirement

Incentives.

For every birthday of the employee, he/she will receive a cash incentive of P 1,500.

The employee will receive healthcare assistance if he/she got hospitalized within the

duration of his/her involvement in the business. The company will provide healthcare assistance

on the net aggregate amount of hospital and medicine bills after deducting Philhealth. The

amount that will be given is fifty percent (50%) of the net aggregate amount due of the employee.

Upon retirement, the employee will receive its retirement pay of one-half month salary

for every year of service. The term one-half month salary shall mean 15-day salary plus 1/12 of

the 13th month pay. Since the business is employing less than ten employees, the provision of

yearly incentive leave of five days with pay shall not apply to the business after considering the

viability or financial condition of the business. The business follows the general retirement age

stated under the Labor Code (Art. 287). The employee may retire upon reaching the age of 60 or

more, but not more than 65, provided he has served at least 5 years or more in the business. The

age 60 or more, but below 65, is considered as the voluntary retirement age. Sixty-five is

considered as the compulsory retirement age.

The 5 farm personnel will stay-in at the poultry farm to maintain and control the chicken

growing process thoroughly. Because of this, every farm personnel will be paid a night shift

differential of 10% of his/her monthly salary every month.

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 Employees must arrive and be prepared to commence work at their scheduled start time

to avoid the negative impact on our ability to effectively provide productive services. They will

log-in upon their arrival and log-out upon end of working hours in the business for monitor and

control purposes. Employees are responsible for notifying supervision of absences, late arrivals,

or early departures each day of the absence, tardiness, or early departure. The business will

implement a “no work no pay” policy but will allow a maximum of 4 days off - every Sunday of

the month. To cater the problem in tardiness of the employees, they will be terminated if they

will incur seven (7) consecutive days of being late. They will be considered late if they will

arrive at the working place at 9:00 am. Employees will wear the proper dress code imposed by

the business in the workplace.

5.6 Legal Requirement

a. Registration Requirements

Business Name Registration

From the Department of Trade and Industry (DTI) provincial office of the province where the

business is located

Validity: 5 years

Barangay Clearance

From the barangay office, which has jurisdiction over the area where the business is located

Mayor’s Permit and License / Sanitary Permit

From the local government which has jurisdiction over the area where the business is located

Validity: 1 year

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Tax Identification Number (TIN)

From the Bureau of Internal Revenue (BIR) National Office

Environmental Compliance Certificate

Department of Environment and Natural Resources (DENR)

Employee Benefits

The business shall also register to the Social Security System, PhilHealth and Home

Development Mutual Fund for the benefits that they offer to their employees.

Employee Registration

Department of Labor and Employment

Payment of Taxes

Bureau of Internal Revenue

b. Location requirements and recommended layout for poultry farms

The farm site measures five (5) hectares and is within an agricultural zone. It is two and a

half (2.5) km away from residential area with reliable source of electricity and adequate potable

water. The poultry house’s maximum volume capacity of chicken is 8,000. The size of the

poultry house is 50ft (width) x 90 ft (long) x 36 ft(height). The feeds will be provided by the

supplier of the chicken.

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 Chapter 6

FINANCIAL ASPECT

6.1Objective of the Study

To be able to achieve at least eleven percent return on investment on the first year of

operation and raise it by at least three percent annually

6.2 Total Project Cost

Expense Forecast
Transportation
Expense 12,000.00 13,200.00 14,520.00 15,972.00 17,569.20

Advertising Expense 60,000.00 66,000.00 72,600.00 79,860.00 87,846.00

Supplies Expense 18,000.00 19,800.00 21,780.00 23,958.00 26,353.80

Utility Expense 5,576.00 6,133.60 6,746.96 7,421.66 8,163.82

Installation fees 60,000.00 72,000.00 84,000.00 96,000.00 108,000.00

Depreciation Expense 199,790.00 199,790.00 199,790.00 199,790.00 199,790.00

Salary Expenses 865,200.00 865,200.00 865,200.00 865,200.00 865,200.00

Employee Benefits 215,405.20 215,405.20 215,404.80 215,404.80 215,404.80

License and Taxes
Expense 26,000.00 27,300.00 28,665.00 30,098.25 31,603.16
Repair and
Maintenance Expense 30,000.00 33,000.00 36,300.00 39,930.00 43,923.00

Interest Expense 96,000.00 76,800.00 57,600.00 38,400.00 19,200.00

Miscellaneous
Expense 25,000.00 27,500.00 30,250.00 33,275.00 36,602.50

Total Expenses 1,612,971.20 1,622,128.80 1,632,856.76 1,645,309.71 1,659,656.28

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Employees Salary

2017 2018 2019 2020 2021

General Manager 120,000 120,000 120,000 120,000 120,000
Production Officer 102,000 102,000 102,000 102,000 102,000
(5) Farm Personnel 450,000 450,000 450,000 450,000 450,000
Bookkeeper 97,200 97,200 97,200 97,200 97,200
Custodian/ Cashier 96,000 96,000 96,000 96,000 96,000
Total 865,200 865,200 865,200 865,200 865,200

Benefits (SSS, PhilHealth, Pag IBIG, 13th month Pay, Birthday Cash Incentive)

2017 2018 2019 2020 2021

General Manager 22,740.40 22,740.40 22,740.00 22,740.00 22,740.00
Production
19,471.60 19,471.60 19,471.60 19,471.60 19,471.60
Officer
Farm Personnel 135,150.00 135,150.00 135,150.00 135,150.00 135,150.00
Bookkeeper 19,071.60 19,071.60 19,071.60 19,071.60 19,071.60
Custodian/
18,971.60 18,971.60 18,971.60 18,971.60 18,971.60
Cashier
Total 215,405.20 170,405.20 170,405.20 170,405.20 170,405.20

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Depreciation Expense:

Units
Property Plant and Useful life( Cost(in Unit Total Costs Salvage Depreciati
Equipment in years) Pesos) s (in Pesos) Value on
Battery 20 500,000.00 3 1,500,000.00 150,000.00 67,500.00
Office Room 10 500,000.00 1 500,000.00 50,000.00 45,000.00
House 10 300,000.00 1 300,000.00 50,000.00 25,000.00
Farm Equipment
Wheelbarrow 10 700.00 3 2,100.00 200.00 190.00
Water Tank 15 10,000.00 2 20,000.00 2,000.00 1,200.00
Feeding Trough 5 155.00 160 24,800.00 4,960.00
Ventilation Fan 5 4,000.00 18 72,000.00 500.00 14,300.00
Weighing Balance 5 1,500.00 3 4,500.00 300.00 840.00
Truck w/ Cage 8 200,000.00 1 200,000.00 20,000.00 22,500.00
Water Pipe
Nipple 5 25.00 200 5,000.00 1,000.00
PVC pipe 5 200.00 60 12,000.00 2,400.00
Manual Drinker 5 225.00 100 22,500.00 4,500.00
Lamp
Flourescent 5 250.00 18 4,500.00 900.00
Brooder/Heater 5 4,000.00 8 32,000.00 6,400.00
Office Equipment
Computer 5 15,000.00 1 15,000.00 3,000.00 2,400.00
Printer 5 5,000.00 1 5,000.00 1,500.00 700.00
Total 2,719,400.00 199,790.00

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6.3 Initial Capital Requirement

Quantity Unit Price Total Price

Chicks 4000 15.00 60,000.00
Feeds 192 3,857.00 237,561.75
Vaccine 4 280.00 1,120.00
Land (hectares) 1 1,000,000.00 1,000,000.00
Battery 3 500,000.00 1,500,000.00
Office Room 1 500,000.00 500,000.00
House 1 300,000.00 300,000.00
Farm Equipment
Wheelbarrow 3 700.00 2,100.00
Water Tank 2 10,000.00 20,000.00
Feeder Trough 160 155.00 24,800.00
Ventilation Fan 18 4,000.00 72,000.00
Weighing Balance 3 1,500.00 4,500.00
Truck w/ Cage 1 200,000.00 200,000.00
Nipple 200 25.00 5,000.00
PVC pipe 60 200.00 12,000.00
Manual Drinker 100 225.00 22,500.00
Flourescent 18 250.00 4,500.00
Brooder/Heater 8 4,000.00 32,000.00
Furnitures and
Fixtures
Monoblock Chair 5 300.00 1,500.00
Wooden Table 1 3,299.00 3,299.00
Filing Cabinet 1 14,500.00 14,500.00
Office Supplies
Folder 20 5.00 100.00
Record Book 5 85.00 425.00
Ballpen 20 5.00 100.00
Receipts 50 44.00 2,200.00
Correction Fluid 5 14.00 70.00
Calculator 3 100.00 300.00
Stapler 2 40.00 80.00
Plastic Bag 1 100.00 100.00
Waste can 1 160.00 160.00
Broom 2 50.00 100.00
Dustpan 2 50.00 100.00
Total 4,021,115.75

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 Operating Expenses for One Month

Transportation Expense 5,000.00

Advertising Expense 625.00

Supplies Expense 311.25

Utility Expenses 6,000.00

Installation fees 21,000.00

Depreciation Expense 11,315.83

General Manager 10,000.00

Production Officer 8,500.00

Farm Personnel 37,500.00

Bookkeeper 8,100.00

Custodian/ Cashier 8,000.00

Working Capital 116,352.08

Initial Capital
Requirement 4,021,115.75

Total 4,137,467.83

6.4 Sources and Amount of Financing

The owner will be contributing land worth 1,000,000 and cash amounting to 600,000.

The owner will also seek a loan to any financing institution amounting to 800,000.

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Financial Statements

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 Chapter 7

Socio-economics

7.1 Contributions to the Philippine Economy

Chickcharap Poultry Farm provides not only high quality chickens but it also contributes

to the continuous growth of the chicken industry in the country. Hence, the following are the

contributions of Chickcharap Poultry Farm in the Philippine economy: Adoption of modern

technology in order to improve productivity; lower production costs in order to attain global

competitiveness; more supply of live broiler chickens in the market in order to suffice the

increasing demand for chicken; and gives revenue to the government through paying taxes and

license fees.

Due to these benefits, the business affects the economic growth of the country. It reduces

unemployment and helps redistribution of resources such as income. It helps increase the

purchasing capability of each individual in the society, which can result in increasing the

economic status of the people and the economic value of the entity as well. Both the business and

the government will be able to attain its goals and objectives.

7.2 Employment Generation

Chickcharap Poultry Farm will employ skilled workers. The business will provide

number of employment opportunities during construction and operation of the business. People

coming from Igbaras, Iloilo will be given priority. Thus, twelve (12) people will be employed

during construction phase and nine (9) people during operation phase. The entity expects to hire

additional employees for its expansion. They will be given monthly salary and additional

compensation for extra work.

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7.3 Consumer Benefits

The consumers will have sufficient supply of live broiler chickens in the market.

Chickcharap Poultry Farm offers healthy chickens with an affordable price. The wholesalers and

business establishments will have convenience in getting their supply with lesser effort and price.

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 BIBLIOGRAPHY

References:

Graham Pearce. (n.d.). Iloilo. Retrieved Jan. 1, 2016 from https://en.m.wikipedia.org/wiki/Iloilo

Quantum X, Inc. (Jan 16, 2009). Most Common Requirements asked by Employers. Retrieved
March 10, 2016 from http://www.jobopenings.ph/article_item-
102/Most_Common_Requirements_asked_by_Employers.html

Ted Ferrolino. (Sept. 5, 2009). Determining compensable hours worked. Retrieved March 10,
2016 from http://www.laborlaw.usc-law.org/2009/09/05/determining-compensable-hours-
worked/

Department of Labor and Employment. (October 7th, 2009). Book III - Conditions of
Employment. Retrieved March 10, 2016 from http://www.dole.gov.ph/labor_codes/view/4

Tamil Nadu Agricultural University (n.d.). Expert System. Retrieved March 10, 2016 from
http://agritech.tnau.ac.in/expert_system/poultry/Poultry%20Farm%20Equipments.html

‘Broiler Production Quarterly’2013,Broiler Situation Report, Vol. 3, No. 2, p. 7.

Philippine Statistics Authority. (July 31, 2013). Population of Iloilo City Rose to 425.Retrieved
March 10, 2016 from //psa.gov.ph/content/population-iloilo-city-rose-425-thousand-results-
2010-census-population-and-housing

Thomas Brinkhoff. (April 10, 2014). ILOILO (Province). Retrieved March 10, 2016 from
http://www.citypopulation.de/php/philippines-admin.php?adm1id=0630

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APPENDICES

60
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 SOURCE DOCUMENTS

(Interview with the Vendors)

Questions:
1. What is the wholesale price of chicken?
2. Who is/are your suppliers?
3. How much is the per kilo of chickens?
4. How many chickens can you dispose per day?

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 5. How much is your profit per chicken?

(Written Questions given to a Poultry Owner)

Questions:
1. How much is your initial capital?
2. What is the ideal size of the poultry?
3. What kind of feeds do you give to the chickens?
4. Who are your major suppliers?
5. Who are your target markets and customers?

March 04, 2016

Engr. Roy M. Abaya

OIC Regional Executive Director

Department of Agriculture

RFO 6

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Good Day! We, the students from University of San Agustin, are conducting a feasibility study regarding
the poultry business here in the City of Iloilo. With regards to this, we would like to ask data about the
following:

• Major suppliers of Chicken in the markets in Iloilo City

• Suppliers of live chicks and chickens in Iloilo City

• Supplier of chicken feeds in Iloilo City

• Pricing of chicken in the market

• Initial capital requirement in putting up a poultry farm

• Ideal size for a poultry

• Lay-out for a poultry farm

• Costing in putting a poultry farm

• Demand and supply of chicken in Iloilo City

Hoping for your positive response. Thank you and God bless.

Respectfully yours,

Rovyn Goson Tan

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