A BUSINESS PLAN

“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”

Brgy. Tiniwisan, Butuan City

A BUSINESS PLAN OF TABELON’S FARM

DUCK RAISING, BALOT, PENOY, AND SALTED

EGGS PRODUCTION PROJECT
Name of Proponent: Tabelon’s Farm Contact Person: Mr. Dewy E. Tabelon
Home Address: Brgy. Tiniwisan, Butuan City Contact Number: 09127043410
Business Address: Brgy. Tiniwisan, Butuan City
Total Project Cost: Php 1,757,625.00
Land Bank of the Philippines: Php 1,000,000.00
Proponent’s Equity : Php 757,625.00

Table of Contents
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City

Chapter 1. Enterprise Description

1.1 Rationale
1.2 Tabelon Farm
1.3 Goals and Objectives
1.4 Enterprise Location and Customers

Chapter 2. Product and Services

2.1 Products Sold
2.2 Capital Equipment

Chapter 3. Market Analysis Section

3.1 Customers and Market Area

3.2 Market Demand, Potential and Volume
3.3 Sales Potential and Volume
Chapter 4. Competition
4.1 Competitors Description
4.2 Competitive Advantage

Chapter 5. Management and Operation Section

5.1 Organizational Structure
5.2 Strength and Weaknesses of Management
5.3 Business Operation

Chapter 6. Financial Plan

6.1 Financial Objectives
6.2 Enterprise Expenses
6.2.1 Supply and materials Expenses
6.2.2 Operational Expenses
6.3 Financial Statements
6.3.1 Projected Income Statement
6.3.2 Projected Cash Flow

Chapter 7. Financial Analysis

 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City

CHAPTER 1. PROJECT PROFILE

1.1 RATIONALE

Duck Raising is profitable livestock industry in the Philippines because of its egg
production. It is second to chicken layer production. The egg duck is incubate into balut and
penoy and process into salted eggs (itlog na maalat).

Balut and Penoy is considered as high demand agricultural products because of its high
quality flavor and high nutritious value. It is consumed during snacks time and after/before
dinner time.

According to PSA, 2017 National and Regional Consumption of Selected Agricultural

Commodities in the Philippines (Volume 1), the regional average per capita consumption of
duck egg is 5 pieces per person per year and duck meat is 0.9 kg per year.

It is expected that demand of rice duck products will increase due to low price and high taste
quality compared to chicken eggs. Currently, some of the bakeries are already utilized duck
eggs as ingredients in bread/cake baking. In addition, the demand of Balut, Penoy and Salted
Eggs is also increasing due to its delicious flavor and perfect snacks during night time and
consumed accompanied by other type of alcohol drinks for enjoyment.

1.2 TABELON’S FARM

Tabelon’s Farm is located at Brgy. Tiniwisan, Butuan City covering more or less 1
hectare. It was managed by Mr. Dewy E. Tabelon. The project is confined with the 1 hectare
agricultural lot which was acquired thru a lease agreement from Mr. Fredo Tabelon in their
favor. The farm were already engaged in rice production and started rice duck farming last
2010.

The proponent applies a ranch type rice duck farming by bringing ducks to open rice field
after harvesting to eliminate the mollusk pest in the rice field which is an alternative organic
way of rice farming. Mollusk (kuhol) is rich in protein which is very abundant pest in the
ricefield.

The farm is 10 kms away and 15 Kms from Langihan Public Market and South Public Market
at Villa Kananga, Butuan City. It can be reached through traversing the concreted road
Butuan- Davao Road and concreted Tiniwisan-Bobon Farm to Market Road.

With the existing features and favorable condition in the area, the farm is very strategic for
rice duck farming production. Tabelon’s Farm will purchase 1000 heads of high breed
ducklings to attain the objective in this project.

The proposed “Duck Raising, Balot, Penoy and Salted Eggs Production Projecct” of
Tabelon’s Farm planned to cater the large volume of demand of Duck eggs in the market
especially the Balot Products. The farm has a great role in the promotion of natural farming
and contribution towards food self-sufficiency in the city of Butuan.
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City

1.3 Goal and Objectives of the Project

The main purpose of this business plan is to apply financial loan to Land Bank of the
Philippines –Agricultural Comprehensive Enhancement Fund (ACEF) in order to expand its
current operation.
Specifically, the farm aims to:

1. To supply balut, penoy and salted eggs in Butuan City and nearest communities in
the farm;
2. To showcase the best agricultural practices for rice duck farming;
3. Showcase a best practice as a beneficiary Land Bank of the Philippines –
Agricultural Comprehensive Enhancement Fund.
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City

1.4 Project Location and Customers

Tabelon’s farm is located at Brgy. Tiniwisan, Butuan City (Figure 1). It can be
reached by all kinds of land transportation through concrete road connecting Butuan to Davao
Road and Tiniwisan-Bobon Farm to Market Road. The location of the project is suitable for
Rice Duck Farming due to its profile within its vicinity. Butuan City and Caraga Region is
the potential market of this project with sufficient of volume of their products.
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City

CHAPTER 2. PRODUCT AND SERVICES

2.1 Services and Product

The products of this project are ballot, penoy, salted eggs and culled ducks. The farm
also aim to become accredited Learning Site to showcase the appropriate technology of Rice
Duck Farming Sytem in the locality to be offered to the rice farmers.

With the target to have competitive business, the farm produced “balut sa puti” which is very
delicious compared to other balot products.

2.2 Assets

The farm had 1 hectare agricultural lot to expand the rice duck production in Brgy.
Tiniwisan which acquired last 2016 thru a lease agreement with Mr. Fredo Tabelon. The farm
will acquired asset to expand the operation into 1000 heads rice duck production which is
shown below:

Animal Housing Investment Cost

Particulars Qty Unit Unit Cost Total Cost
2
Construction of Duck Shed Building 1 unit @ 126 m 276,050.00 276,050.00
Total Cost 276,050.00
Farm Equipment
Particulars Qty Unit Unit Cost Total Cost
Generator Set 1 unit 50,000.00 50,000.00
Incubator 1 unit 50,000.00 50,000.00
Total Cost of Farm Equipment 100,000.00
Marketing Equipment
Particulars Qty Unit Unit Cost Total Cost
Motorcycle with accessories 1 unit 80,000.00 80,000.00
Total Cost 80,000.00

The total amount of asset to be acquired is Php 456,000.00 in order to expand the current
operation of the farm.

CHAPTER 3. MARKET ANALYSIS

3.1 Customers and Market Area growth

 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City

The target customers of this project are local balut vendors and public market in
Butuan City. List of vendors and its volume required are shown below:

1.) Marissa A. Labolabo - 120 PCS

P-2 Brgy. Lemon Butuan City

2.) Arvin Cadorna - 90 PCS

P-6 Cabcabon Butuan City

3.) Joel River - 120 PCS

P-1 Brgy. Lemon Butuan City

4.) Marites O. Reserva - 150 PCS

Buenavista Agusan del Norte

5.) Lyn Gabato - 90 PCS

P-1 Cabcabon Butuan City

6.) Ann Gonzaga - 90 PCS

Alviola Butuan City

7.) Tantin Abad - 60 PCS

P-1B TIniwisan Butuan City

8.) Norma Vertudazo - 150 PCs

P-2 Ipil Road Butuan City

Total 750 pcs

This list of vendors had already agreement with the Tabelon’s Farm to secure the market of
rice duck products produced by the farm. It is expected that farm will produce 750 pcs of
balot per day at 12.00 per pcs.

Production Sc he dule
Partic ulars Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Good to Lay Ducks 1,000 1,000 1,000 1,000 1,000 1,000 1,000

Average Egg Production Rate

70% 70% 70% 70% 70% 70% 70%
Total Eggs Produced 21,000.00 21,000.00 21,000.00 21,000.00 21,000.00 21,000.00 21,000.00
Less Rejected Eggs (2 %) 420 420 420 420 420 420 420
Good Eggs for Incubation 20,580.00 20,580.00 20,580.00 20,580.00 20,580.00 20,580.00 20,580.00
Balut (70%) 14,406.00 14,406.00 14,406.00 14,406.00 14,406.00 14,406.00 14,406.00
Penoy(10%) 2,058.00 2,058.00 2,058.00 2,058.00 2,058.00 2,058.00 2,058.00

Salted Eggs (10 %) 2,058.00 2,058.00 2,058.00 2,058.00 2,058.00 2,058.00 2,058.00
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City
In the table above, which shown the production schedule of balut, penoy and salted eggs. The
volume of balot is insufficient to supply the vendors. It has 269 pieces of balut egss needed.
In this scenario, the proponent will outsource balut eggs to other balut and penoy producers.

3.2 Market Demand, Volume and Potential

Butuan City has total population of 337,000 as of 2015. With the large demand of
rice duck products especially the ballot products, the city cannot supply the large volume of
demand of the rice duck products. It is expected that in this project can contribute the
production of balot products which high demand in the market.

3.5 Sales Potential and Volume

Table 3 had shown the projected sales potential and volume of this enterprise,
assuming all factors affecting market demand to be constant.

Table 3. Estimated sales potential and volume of the projectX

Projected Sales
Particulars Year 1
Balut Production 100,842
Price 12.00
Total Sales of Balut Production 1,210,104.00

Penoy 14,406
Price 6.00
Total Sales of Penoy 86,436.00

Salted Eggs 2,058.00

Price 10.00
Total Sales of Fatteners 20,580.00

Culled Ducks -
Price 80.00
Total Sales of Culled Ducks -

Empty Sacks 695.00

Price 10.00
Total Sales of Empty Sacks 6,950.00

TOTAL SALES 1,324,070.00

 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City

CHAPTER 4.0 COMPETITION

4.1 Competitors Description

The competitors in this project are the Balut producers in Butuan City and Agusan provinces.

4.2 Competitive Advantage

The competitive advantages of this project are its strategic location, delicious balut
products , affordable pricing and their product promotion. The farm is 10 kms and 15 kms
away from the Butuan City public market. Balut products produced in this project will lessen
the damages in trading to the market which resulted to high profit.

4.2.1 Price

The pricing of the rice duck products should be market based considering also the
pricing structure of its competitor. In –depth surveys of prospective consumers can also be
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City
the guidance of the association in its pricing policies. Further, conversation with vendors can
also be a good guidance of the association to be able to feel the market pulse.

4.2.2 Promotion

The association will promote its product and services thru the social networking
marketing such as Facebook, Twitter, Instagram and websites. Print and broadcast media in
Butuan City can also be utilized to expand the reach of the communication and information
activities.

CHAPTER 5.0 MANAGEMENT AND OPERATION

5.1 Management

The enterprise will be managed and supervised by its Farm Manager, Mr. Dewy E.
Tabelon Below is the organizational structure and the roles and responsibilities of personnel
of the enterprise.

Farm Manager
Bookkeeper

Flock Man Utility Worker

Position Roles and Responsibilities

Farm Manager  Manages and supervises the over-all operations and
directions of the farm
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City
 Trouble-shoots problems and gaps that arises
 Takes charge of procurement and hauling of supply and
materials
 Act as marketing officer
Bookkeeper  Checks and maintains accounting books
 Provides advice on proper handling of sales disbursement
records
 Act as cashier
Farm Worker (8)  Assist the Farm Manger in the whole operation in the Farm
 Ensure proper storage and safety handling of supplies and
materials in the Farm
 Maintains cleanliness and orderliness

Flock man  Responsible in the production of rice duck egg

production, feeding and medication.

The organizational structure is simple and designed in such a way that feedback
mechanism can be easily communicated.

The enterprise also practice daily meeting to recognize performance, provide

suggestions, solve problems and instruct tasks and assignments.

5.2 Strengths and Weaknesses of Management

The strengths and weaknesses of the management of this enterprise is described

below.

Parameters Strengths Weaknesses

Organization structure  Plain and simple
 Provides instruction and
feedback directly
Staffing  Close family relation  No performance
 Competent staff standards of staff
Leadership  Motivated and inspired
leadership
Control  Regular monitoring and  Limited internal control
evaluation is conducted
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City
6.0 FINANCIAL PLAN

6.1 Financial Objectives

This business plan is formulated to qualify for a loan in the amount of PhP
1,000,000.00 to Land Bank of the Philippines Agricultural Competitiveness Enhancement
Fund Program. The loan proceeds will be used for expansion of farm operation.

In its goal to expand its operation, this project will provide equity of
(PhP 757,625.00) to operate the enterprise and cost of goods to be sold and one year
operation expenses, as described below.

6.2 Enterprise Project Cost

The total project cost is Php 1,757,625.00. The amount of Php 757,625.00 is the
proponent’s equity in kind while the amount of Php 1,000,000.00 is the cash amount of Loan
Proceeds.

The loan proceeds consist of construction of duck shed building, procurement of farm
and marketing equipments, procurement of feeds, biologics and ducklings.

Supply and materials expenses is the capital or amount needed to procure all expected
volume of various farm inputs for production for one year (1) year. Operating expenses
covers salaries and wages, utilities, fuel and oil, repair and maintenance,office supplies and
permits and regulatory fees.

6.2.1 Supply and Materials Expense

In the table below are the supplies and materials needed for the establishment of farm
and during the operation.

Feed and Feedstuff (1 year)

Feed Type Kg/sack Qty Unit Unit Cost Total Cost
Booster 50 3 sacks 1,405.00 4,215.00
Starter 50 32 sacks 1,405.00 44,960.00
Grower 50 144 sacks 1,080.00 155,520.00
Pre-Layer 50 72 sacks 1,230.00 88,560.00
Layer 50 444 sacks 1,320.00 586,080.00
Total 695 879,335.00

Biologics
Particulars Contents Qty. Unit Unit Cost Total Costs
levamisole 7g 7 grams 24 bottle 25.0 600.00
(dewormer) 0
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City
adek-m vitamin 1 liter 35 bottle 1,020.0 35,700.00
supplemint 0
Total   36,300.00

Agricultural Supplies
Particulars Qty Unit Unit Cost Total Cost
Plastic Drum 6 pcs 1,
200.00 7,200.00
Water hose 1 length 2,
840.00 2,840.00
PVC pipe ( 1" x 8') 13 length
450.00 5,850.00
Plastic screen 2 roll 4,
800.00 9,600.00
Double Dry Net 3 roll 5, 1
500.00 6,500.00
Egg Tray 150 pcs 5.00
750.00
Total Cost 42
,740.00

The Supply and Material Expenses in one year operation is amounting to 958,375.00.

6.2.2 Operating Expenses

Table 4 shows the details of the estimated one year operation expenses.

Table 4. Estimated One Year Operating Expenses

  Year 1
Labor 190,000.00
Electricity 638,400.00
Fuel and Oil 29,200.00
Communication Expenses 6,000.00
Office supplies 6,000.00
Total Cost, PhP 869,600.00
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City

6.3 Financial Statements

6.3.1 Projected Income Statement

Projected Income Statement

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Revenues
Sales of Balut 1,210,104.00 2,444,410.08 2,468,854.18 2,493,542.72 2,518,478.15
Sales of Penoy 86,436.00 174,600.72 176,346.73 178,110.19 179,891.30
Sales of Salted Eggs 20,580.00 20,785.80 20,993.66 21,203.59 21,415.63
Sales of Culled Ducks - - 81,608.00 - 83,248.32
Sales of Empty Sacks 6,950.00 7,019.50 7,089.70 7,160.59 7,232.20

Total Revenue 1,324,070.00 2,646,816.10 2,754,892.26 2,700,017.10 2,810,265.60

Operating Expenses
Supervision and Labor 190,000.00 191,900.00 193,819.00 195,757.19 197,714.76
Feeds and feedstuff 879,335.00 591,940.80 888,128.35 597,860.21 603,838.81
Biologics 36,300.00 36,663.00 37,029.63 37,399.93 37,773.93
Agricultural Supplies 42,740.00 43,594.80 44,466.70 45,356.03 46,263.15
Electricity Expense 638,400.00 644,784.00 651,231.84 657,744.16 664,321.60
Fuel and Oil 29,200.00 29,492.00 29,786.92 30,084.79 30,385.64
Repair and Maintenance 18,000.00 18,180.00 18,361.80 18,545.42 18,730.87
Administrative Support Expense 12,000.00 12,120.00 12,241.20 12,363.61 12,487.25

Total Operating Expenses 1,845,975.00 1,568,674.60 1,875,065.44 1,595,111.33 1,611,516.01

Net Income - 521,905.00 1,078,141.50 879,826.83 1,104,905.77 1,198,749.59

6.3.2 Projected Monthly Cash Flow

 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City

Monthly Cash Flow

Particulars Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1
Cash Inflow:
Grant Proceeds from LBP 1,000,000.00
Proponent's Equity 757,625.00
Sales of Balut 201,684.00 201,684.00 201,684.00 201,684.00 201,684.00 201,684.00 1,210,104.00
Sales of Penoy 14,406.00 14,406.00 14,406.00 14,406.00 14,406.00 14,406.00 86,436.00
Sales of Salted Eggs 3,430.00 3,430.00 3,430.00 3,430.00 3,430.00 3,430.00 20,580.00
Sales of Culled Ducks
Sales of Empty Sacks 579.17 579.17 579.17 579.17 579.17 579.17 579.17 579.17 579.17 579.17 579.17 579.17 6,950.00

Total Cash Inflow 1,757,625.00 579.17 579.17 579.17 579.17 579.17 579.17 220,099.17 220,099.17 220,099.17 220,099.17 220,099.17 220,099.17 1,324,070.00

Cash Outflow:
Procurement of Ducklings 70,000.00
Construction of Duck Shed Building 276,050.00
Procurement of Generator Set 50,000.00
Procurement of Incubator 50,000.00
Procurement of Motorcycle with accessories 80,000.00
Supervision and Labor 15,833.33 15,833.33 15,833.33 15,833.33 15,833.33 15,833.33 15,833.33 15,833.33 15,833.33 15,833.33 15,833.33 15,833.33 190,000.00
Feeds and feedstuff 73,277.92 73,277.92 73,277.92 73,277.92 73,277.92 73,277.92 73,277.92 73,277.92 73,277.92 73,277.92 73,277.92 73,277.92 879,335.00
Biologics 3,025.00 3,025.00 3,025.00 3,025.00 3,025.00 3,025.00 3,025.00 3,025.00 3,025.00 3,025.00 3,025.00 3,025.00 36,300.00
Agricultural Supplies 3,561.67 3,561.67 3,561.67 3,561.67 3,561.67 3,561.67 3,561.67 3,561.67 3,561.67 3,561.67 3,561.67 3,561.67 42,740.00
Electricity Expense 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 24,000.00
Fuel and Oil 2,433.33 2,433.33 2,433.33 2,433.33 2,433.33 2,433.33 2,433.33 2,433.33 2,433.33 2,433.33 2,433.33 2,433.33 29,200.00
Repair and Maintenance 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 18,000.00
Administrative Support Expense 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 12,000.00
2 % Interest and Loan Amortization 18,333.33 18,333.33 18,333.33 18,333.33 18,333.33 18,333.33 18,333.33 18,333.33 18,333.33 18,333.33 18,333.33 18,333.33 220,000.00

Total Operating Expenses 526,050.00 120,964.58 120,964.58 120,964.58 120,964.58 120,964.58 120,964.58 120,964.58 120,964.58 120,964.58 120,964.58 120,964.58 120,964.58 1,451,575.00

Net Cash Flow 1,231,575.00 - 120,385.42 - 120,385.42 - 120,385.42 - 120,385.42 - 120,385.42 - 120,385.42 99,134.58 99,134.58 99,134.58 99,134.58 99,134.58 99,134.58 - 127,505.00

6.3.3 Projected Cash Flow

 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City
Projected Cash Flow

Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Cash Inflow:
Grant Proceeds from LBP 1,000,000.00
Proponent's Equity 757,625.00
Sales of Balut 1,210,104.00 2,444,410.08 2,468,854.18 2,493,542.72 2,518,478.15
Sales of Penoy 86,436.00 174,600.72 176,346.73 178,110.19 179,891.30
Sales of Salted Eggs 20,580.00 20,785.80 20,993.66 21,203.59 21,415.63
Sales of Culled Ducks - - 81,608.00 - 83,248.32
Sales of Empty Sacks 6,950.00 7,019.50 7,089.70 7,160.59 7,232.20

Total Cash Inflow 1,757,625.00 1,324,070.00 2,646,816.10 2,754,892.26 2,700,017.10 2,810,265.60

Cash Outflow:
Procurement of Ducklings 70,000.00 72,121.07
Construction of Duck Shed Building 276,050.00
Procurement of Generator Set 50,000.00
Procurement of Incubator 50,000.00
Procurement of Motorcycle with accessories 80,000.00
Supervision and Labor 190,000.00 199,500.00 209,475.00 219,948.75 230,946.19
Feeds and feedstuff 879,335.00 591,940.80 888,128.35 597,860.21 603,838.81
Biologics 36,300.00 36,663.00 37,029.63 37,399.93 37,773.93
Agricultural Supplies 42,740.00 43,594.80 44,466.70 45,356.03 46,263.15
Electricity Expense 24,000.00 24,240.00 24,482.40 24,727.22 24,974.50
Fuel and Oil 29,200.00 29,492.00 29,786.92 30,084.79 30,385.64
Repair and Maintenance 18,000.00 18,180.00 18,361.80 18,545.42 18,730.87
Administrative Support Expense 12,000.00 12,120.00 12,241.20 12,363.61 12,487.25
2 % Interest and Loan Amortization 220,000.00 220,000.00 220,000.00 220,000.00 220,000.00
Total Operating Expenses 526,050.00 1,451,575.00 1,175,730.60 1,556,093.07 1,206,285.96 1,225,400.33

Net Cash Flow 1,231,575.00 - 127,505.00 1,471,085.50 1,198,799.20 1,493,731.15 1,584,865.27

 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City
7.0 FINANCIAL ANALYSIS
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City
BENEFIT-COST ANALYSIS

Particulars Year 0 Year 1 Year 2 Year 3 Year 4

BENEFITS:
Sales of Balut 1,210,104.00 2,444,410.08 2,468,854.18 2,493,5
Sales of Penoy 86,436.00 174,600.72 176,346.73 178,1
Sales of Salted Eggs 20,580.00 20,785.80 20,993.66 21,2
Sales of Culled Ducks - - 81,608.00
Sales of Empty Sacks 6,950.00 7,019.50 7,089.70 7,1
Total Benefits - 1,324,070.00 2,646,816.10 2,754,892.26 2,700,0

COSTS:
Acquisition of Animal Stock 70,000.00 70,000.00
Construction of Duck Shed Building 276,050.00
Procurement of Farm Equipment 100,000.00
Procurement of Marketing Equipment 80,000.00
Supervision and Labor 190,000.00 191,900.00 193,819.00 195,7
Feeds and feedstuff 879,335.00 591,940.80 888,128.35 597,8
Biologics 36,300.00 36,663.00 37,029.63 37,3
Agricultural Supplies 42,740.00 43,594.80 44,466.70 45,3
Electricity Expense 24,000.00 24,240.00 24,482.40 24,7
Repair and Maintenance 18,000.00 18,180.00 18,361.80 18,5
Administrative Support Expense 12,000.00 12,120.00 12,241.20 12,3
Depreciation 31,802.50 31,802.50 31,802.50 31,8
2 % Interest and Loan Amortization 220,000.00 220,000.00 220,000.00 220,0
Total Costs 526,050.00 1,454,177.50 1,170,441.10 1,540,331.58 1,183,8

NET BENEFIT - 526,050.00 - 130,107.50 1,476,375.00 1,214,560.69 1,516,2

Financial Ratios:
Return of Investment 71%
Internal Rate of Return 109.37%
Net Present Value, PhP ₱2,946,428.74
Benefit/Cost Ratio 1.73
Pay-back Period 2 year
7.1 Rate of Investment (ROI) per Year

With initial investment of PhP is 1,757,625.00 which constitutes of Php 757,526.00

as enterprise equity in kind and Php 1,00,000.00 loan proceeds from Land Bank of the
Philippines Loan Access Program, the rate of Investment per year of operation is 71 %.
Since the enterprise ROI is greater than the maximum allowable rate of return of 18%, this
enterprise is a worthwhile investment.

7.2 Internal Rate of Return (IRR)

Setting the maximum allowable rate of return (MARR) which is equivalent to the
existing bank interest rate plus inflation rate at 12% per annum, the internal rate of return
(IRR) of this enterprise project is 109.3 %. The IRR being higher than the MARR indicates
that this projects is a viable business.

7.3 Net Present Value (NPV)

Having a net present value (NPV) of PhP 2,946,428.74 which is greater than zero, it
can be inferred that this enterprise project is a commendable investment.
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City
7.4 Benefit-Cost Ratio (BCR)

With a benefit-cost ratio (BCR) of 1.73 which is greater than 1.0, this means that
every peso investment will earn 0.73 centavos. Thus, it can be concluded that this enterprise
is a good business.

7.5 Pay-back Period

Referring at the projected cash flow statement, it can be observed that the loan
proceed of Php 1,000,000.00 from Land Bank of the Philippines Loan Access Program can
be repaid within two year of operating the enterprise.

Since the pay-back period is less than the designed operational life of the business
which is five years, it can be said that this enterprise project is a worthy investment.

Prepared by: Noted by:

Engr. Mark Gil F. Baynosa Mr. Dewy E. Tabelon

Agricultural Technologist Farm Owner/ Manager
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City
 A BUSINESS PLAN
“DUCK RAISING, BALOT, PENOY, AND SALTED EGGS PRODUCTION PROJECT”
Brgy. Tiniwisan, Butuan City