REPUBLIC OF THE PHILIPPINES

NORTHWEST SAMAR STATE UNIVERSITY

SAN JORGE CAMPUS
SAN JORGE, SAMAR

A PROJECT FEASIBILITY STUDY

“PHILIPPINE MALLARD DUCK (ITIK) EGG PRODUCTION AND PROCESSING”

SUBMITTED TO:

MR. RAMIL B. CORRALES

INSTRUCTOR

SUBMITTED BY:

JERALD T. VILLAPAZ
BSA-4 (AN. SCI)
 Table of Contents

A. Project Title ……………………………………………………………………………….

B. Project Location…………………………………………………………………………...
C. Statement of the Objectives……………………………………………………………….

I. MARKET ASPECT

1. The Need of the Project…………………………………………………………...

2. Market Description……………………………………………………………….
3. Demand…………………………………………………………………………….
4. Supply……………………………………………………………………………...
5. Demand Supply Analysis………………………………………………………….

II. TECHNICAL ASPECT………………………………………………………………

1. The Product……………………………………………………………………….
2. Manufacturing Process……………………………………………………………
3. Plant Size and Production Schedule……………………………………………...
4. Machinery and Equipment……………………………………………………….
5. Plant and Project Location……………………………………………………….
6. Plant Layout……………………………………………………………………….
7. Building and Facilities…………………………………………………………….
8. Raw Materials and Supplies……………………………………………………...
9. Utilities…………………………………………………………………………….
10. Water Disposal…………………………………………………………………….
11. Production Cost……………………………………………………………………
12. Labor Requirements………………………………………………………………

III. ORGANIZATION AND MANAGEMENT ASPECT………………………………

IV. FINANCIAL ASPECT………………………………………………………………..

1. Total Project Cost…………………………………………………………………

2. Sources of fund…………………………………………………………………….
3. Preparation of Financial Statements……………………………………………
4. Financial Analysis…………………………………………………………………

V. SOCIO-ECONOMIC ASPECT………………………………………………………

VI 1. SUMMARY OF FINDINGS……………………………………………………..
2. CONCLUSIONS AND RECOMMENDATIONS………………………………..

A. Project Title
 The Project is entitled ‘A Feasibility Study on Philippine Mallard Duck (Itik) Egg
Production and Processing”. There are several reasons why the proponents choose to
venture on this project. Firstly, duck-raising is profitability livestock industry in the
Philippines because of its egg. Duck is second to chicken in economic importance as
source egg and meat. Its most important product, the “balut” (boiled incubated duck’s
egg) is sold daily throughout the archipelago for its delicious flavor and nutritive value.
Secondly, duck is considered as the most versatile avian specie because it can subsist
under a wide range of climatic and nutritional conditions ( Lambio 2002). Also, duck-
raising is inexpensive and can start off with a minimal start-up capital. It requires non-
elaborate housing facilities, and little attention, and less space for rearing compared to
chickens. Most importantly, ducks are shown to be relatively hardy, resistant to common
avian diseases, and subsist on a variety of feeds.

B. Project Location
Ducks can be raised in areas near bodies of water or in areas where there are rice
fields to feed on after harvest. As a rural Municipality, the proponents have San Jorge
specifically in the barangay of Lapaz. The farm is relatively far from the residential areas
about 230 meters, as required by Department of Environment and Natural Resources
(DENR).

C. Statement of the Objectives

This study entitled “A Feasibility Study on Philippine Mallard Duck ( Itik) Egg
Production and Processing” aims to explore the possibility of ventureing into Itik Egg
Production and Processing in the Muncipality of San Jorge, Lapaz.
 I. MARKET ASPECT

1. The Need of the Project

The need for the project could be viewed from the effects

it could generate to enterprise citizens and to the researchers

in particular, who are exploring viable investment projects where

they could channel their resources. It encompasses five major

aspects, namely: market aspect, technical aspect, financial

aspect, management and organization aspect, and socio-economic

aspect. In as much as the setting of the study represents a

typical town, the findings of the study may be applicable to

other similar rural communities where ducks could be grown and

raised.

The project could be implemented by any prospective

investor who can generate the necessary resources to start

the business. Once the project is implemented, the owner and

the community as a whole will enjoy several economic and

social benefits:

a. It will generate income to the owner and other

people who will be directly or indirectly employed

in its operations like the farmers, vendors, and

other retailers.
 1. Market Description

Duck egg production and processing is s profitable

enterprise; even the so-called ‘low’ quality eggs, such as

those that have thin and cracked shells can still be sold in

the market and used as table egg. The most popular egg

products are balut, penoy, red salted and century eggs.

2. Demand
2.1 Present Demand

At present, marketing of duck eggs is not a problem since

demand is high. In fact, supply is still unable to meet the

demand for balut and other egg products.

3. Supply

3.1 Present Supply

As mentioned previously, supply is still unable to meet

the demand for balut and other egg products.

3.2 Proposed Marketing Program

The duck egg will be sold to the market at 7.00 per piece.

There are four marketing channels used in marketing duck eggs.

The flow of marketing duck eggs is shown below.

1. Producer -> assembler-wholesaler -> retailer -> consumer

 In this type of marketing channel, the assembling of duck

eggs is in the producer’s area and the eggs are later sold

to retailers in the market.

2. Producer -> assembler-wholesaler -> balut operator ->

retailer(vendor) -> consumer

The producer sells the duck egg to the assembler-wholesaler.

The assembler-wholesaler will then sell the egg to the balut

operator and the balut is retailed by the vendor to the

consumer.

3. Producer -> balut operator -> retailer(vendor) -> consumer

In this instance, the balut operator directly gets duck eggs

from the producer and sells to the retailer/ vendor then

ultimately to the consumer.

4. Producer -> assembler-wholesaler (century/salted eggs)->

wholesaler/retailer -> retailer -> consumer

The producer sells the duck egg to the assembler-retailer for

processing. The assembler-wholesaler.
 1.1 Projected Supply

The table shows the projection of the supply of the

product for the first five years.
Table 2. Projected Supply of Duck Eggs
Year Projected Supply
(per annum)
1 240,000
2 360,000
3 400,000
4 480,000
5 560,000

I. TECHNICAL FEADIBILITY ASPECT

1. The Products

The products to be marketed are mainly duck eggs for

distribution to different outlets and balut/penoy/salted egg

processors in Tuguegarao City.

2. Manufacturing Process

The processes involved in the manufacturing the eggs begins

with the breeding, feeding, proper housing and handling of the

ducks until the ducks are ready to lay eggs. The breeding the
ducks, several stages are involved; selection of stocks, sex

ratio and mating system, management of replacement breeder

stocks, proper care and handling of hatching eggs, incubation and

hatchery management, candling and fertility determination,

handling of ducklings, hatchery waste disposal and utilization

and culling.

3. Plant Size and Production Schedule

3.1 Plant Size

The lot which is about 300 square meters will accommodate

the farm where the ducks will be grown and nurtured and a small

office space, with an area of 50 square meters.

3.2 Production Schedule

The ducks has an estimated mortality rate of 12% (1% per

month. Simply stated, in every one thousand ducks to be nurtured,

88% or 880 ducks will live and be utilized for egg production.

The 12% will be accounted as cost of the business enterprise.

The 880 ducks which survived has an estimated egg production

of 70%. Simply put, 70% of 880 surviving ducks is 560 ducks.

These 560 duck are capable of producing egg.

4. Machinery and Equipment

 5. Plant/Project Location

The farm shall be located in Lanna, Solana, Cagayan where

6. Plant Layout

7. Building and Facilities

The building which will house the office of the management

has an area of 300 square meters. The office space will be

constructed with an estimated cost of 200,000.

8. Raw Materials and Supplies

8.1 Initial

Quantity Description Unit Cost Total Cost

1000 pcs Drakes 10.00/drake 10,000.00
300 pcs Ducks
20 sacks Duck Feeds 1,100/sack 22,000.00
10 packs Vetracin 500/pack 5,000.00
(supplement)
50 meters Screen
2 pieces 15x18 tent
12x15 tent