PROJECT PROPOSAL

Project Proposal
Monkayo Slaughterhouse Improvement
This project proposal is a collaborative effort of Municipal

Agriculture Office – Monkayo and Monkayo College Arts,
Sciences, and Technology, the research arm of the Local
Government Unit of Monkayo
Marcelino F. Cuyab, Ph.D. – Academic Program Head, BA

Dennis C. Ramo, Ph.D. – Academic Program Head, BAT
Dave E. Aparecio, MM
Jesanni B. Atienza, MBA
Mary Chierife C. Funa, CPA
MonCAST
Dr. Christopher M. Edjic. – Municipal Agriculturist

MAGRO
TABLE OF CONTENTS
Monkayo Slaughterhouse Improvement Project Proposal – 2021 Page 1 | 36

TABLE OF CONTENTS
Table of Contents Page No.

Title Page 1
Table of Contents 2
List of Tables 3
List of Figures 4
Project Rationale 5
Technical Assessment of the Project
Market Study 6
Historical Demand – Monkayo Market 6
Projected Demand – Monkayo Market 7
Current Slaughterhouse Capacity 7
Target Slaughterhouse Capacity 7
Projected Demand – Target Capacity Analysis 8
Total Projected Demand – Outside Monkayo 8
Intended Market Areas of Slaughterhouse 9
Market Share – Outside Monkayo 10
Proposed Slaughter Fee Rates 10
Projected Receipts from Slaughterhouse Operations
Project Cost 12
Project Implementation Schedule 13
Beneficiary 13
Appendices
Appendix A – Market Analysis Outside Monkayo 14
Appendix B – Detailed Computation for Projected Receipts 18
Appendix C – Engineer’s Building Perspective & Lay-Out 20
Appendix D – Schedule of Specifications – Equipment 30

LIST OF TABLES
Table No. Title Page No.

Table 1 Historical Demand of Slaughterhouse
Services - Monkayo 6
Table 2 Projected Demand of Slaughterhouse

Services – Monkayo 7
Table 3 Current Service Capacity 7
Table 4 Target Service Capacity 8
Table 5 Projected Demand – Target Capacity
Analysis of Slaughterhouse 8
Table 6 Projected Demand – Outside Monkayo Market 9

Table 7 Market Share – Outside Monkayo Market 10
Table 8 Current and Proposed Rate for Slaughterhouse

Services – Hogs 10

Services – Cattle 10

Services – Goat 11
Table 11 Total Projected Receipts from Slaughterhouse Operation 11
Table 12 Slaughterhouse Improvement Project Cost 12

Table 13 Project Implementation Schedule 13
Table 14 Historical Demand of Slaughterhouse Services

– Outside Monkayo 14
Table 15 Projected Demand – Montevista 15

Table 16 Projected Demand – Compostela 16
Table 17 Projected Demand – Trento 16
Table 18 Projected Demand – Current Capacity Analysis – Montevista 16
Table 19 Projected Demand – Current Capacity Analysis – Compostela 17

Table 20 Projected Demand – Current Capacity Analysis – Trento 17
Table 21 Projected Receipts – Hogs: Monkayo Market 18
Table 22 Projected Receipts – Hogs: Outside Monkayo Market 18
Table 23 Projected Receipts – Cattle 19
Table 23 Projected Receipts – Goat 19
LIST OF FIGURES
Figure No. Title Page No.

Figure 1 Map – Intended Market Areas 9

PROJECT RATIONALE
The expansion of the municipal slaughterhouse is one of the top priorities for the Monkayo
local government, which will be undertaken in response to the pressing need for slaughtering
services and poultry dressing facilities in the developing local economy. In 2019, the country was
affected by the African Swine Flu (ASF). As a result, local government units, pig farmer
organizations, veterinary groups, the commercial sector, and academic institutions collaborated
to reduce the number of cases. This is also one of the centerpieces of the effort to improve the
slaughterhouse services to be able to sustain the safety control of the meat products. With this
objective and desirable outcome, the Monkayo municipal administration will work to upgrade the
existing meat facilities and ensure to meet the National Meat Inspection Services' standards.
The Municipality of Monkayo currently has policies in place for Municipal
Slaughterhouse/Abbatoir and Corral Fees, which include rules and regulations governing the
operation, such as obtaining a permit to slaughter, the nature and imposition of fees, and
maintaining the municipal abbatoir's cleanliness and sanitation. Moreover, in accordance to R.A.
9296 where the local government units shall regulate among others, meat inspection, meat
transport and post-abbatoir control.
The project is expected to deliver a sustainable, ecologically safe, and high-quality
products to the municipality, the region, and the entire country. Specifically, the activities are
expected from the project include,
a. Local ordinance requiring all food businesses to serve only inspected meat in order to
provide consumers with access to clean and safe meat products that satisfy "AA"
standards.
b. Operation of the Municipal Slaughterhouse compliant with environmental laws and
regulation, ensuring continued compliance with national standards

c. TESDA accreditation for butchery, slaughtering, and meat processing that would
increase farm productivity and livelihood opportunities for the people of Monkayo.
d. Lastly, the slaughterhouse may be used as a research and laboratory facility that will
give an educational opportunity for MonCAST, the local agriculture office's academic
partner with its BAT program.
TECHNICAL ASSESSMENT OF THE PROJECT
Market Study
The slaughterhouse expansion project aims to expand it service capacity to
address the growing demand of quality and safe meat to consume around the
identified neighboring municipalities such as; Montevista, Compostela, and Trento.
A market study has been administered in each market areas to analyze the
projected demand of slaughterhouse services against its target service capacity.
Historical Demand – Monkayo Market
Shown in the table 1 below is the historical demand of Monkayo market,

there are two (2) identified market classifications which are the public market meat
vendors and individuals, analyzed for the past three years. Figures are in number
of heads.
2018 2019 2020
Meat Vendors 4,641 4,819 4,841
Individuals 10,829 11,244 11,210
Total Historical Demand - Monkayo 15,470 16,063 16,136
Table 1. Historical Demand of Slaughterhouse Services - Monkayo

Projected Demand – Monkayo Market
Shown in the table 2 is the projected demand of Monkayo market. Based
on the analysis on its historical demand a 2.10% average increase was determined
to project its demand for the next three (3) years. Figures are in number of heads.
Average Increase Projected

Base Demand
Percentage Demand
Year 1 16,051 2.10% 16,388
Year 2 16,388 2.10% 16,732
Year 3 16,732 2.10% 17,083
Table 2. Projected Demand of Slaughterhouse Services - Monkayo
Current Capacity
Slaughterhouse current capacity is averaging in to 20 heads per day with
its 2:00 AM to 5:00AM regular operation schedule. See details in table 3 below.
Figures are in number of heads.
Daily Monthly Annually
Slaughterhouse – Current
20 600 7,200
Capacity
Table 3. Current Service Capacity
Target Capacity
The slaughterhouse expansion project will triple its current service
capacity based on the additional resources from its facilities to manpower, which
will address the growing demand of its services. A comparison of current and

targeted service capacity of slaughterhouse is shown in table 4. Figures are in
number of heads.
Current Capacity Target Capacity
Slaughterhouse Service Capacity 7,200 21, 600
Table 4. Target Service Capacity
Projected Demand – Target Capacity Analysis
Target Service Capacity of slaughterhouse is analyzed against the
Projected Demand of Monkayo market which resulted to an excess capacity that
can accommodate the demand of target markets from nearby municipalities;
Montevista, Compostela, and Trento. Figures are in number of heads.
Projected
Target Service Excess
Demand –
Capacity Capacity*
Monkayo Market
Year 1 21, 600 16,388 5,212
Year 2 21, 600 16,732 4,868
Year 3 21, 600 17,083 4,517
Table 5.Projected Demand – Target Capacity Analysis of Slaughterhouse
Projected Demand – Outside Monkayo
Projected demand of the target nearby municipalities are shown on table

6. Projected demand was computed by analyzing their respective historical
demand based on the 15 kg per capita meat consumption. Details of historical
demand computation for identified markets outside Monkayo is reflected in the
appendices. Figures are in number of heads.

Target Market - Nearby
Year 1 Year 2 Year 3
Municipalities
Montevista 3,374 3,516 3,660
Compostela 7,289 7,562 7,841
Trento 4,186 4,351 4,520

Total Projected
Demand – Outside 14,849 15,429 16,021
Monkayo
Table 6. Projected Demand – Outside Monkayo Market
Intended Market Areas of Slaughterhouse
Shown in the map below is the intended market areas which are marked
with red flags.
Figure 1. Map – Intended Market Areas

Market Share
The figures have shown the market share of Slaughterhouse after

expansion from the target nearby market from Montevista, Compostela, and
Trento. The excess capacity can accommodate the three (3) year projected
demand outside the municipality with 35%, 32%, and 28% respectively.
Projected
Excess Market Share
Demand Outside
Capacity (Head) (%)
Monkayo (Head)
Year 1 5,212 14,849 35%

Year 2 4,868 15,429 32%
Year 3 4,517 16,021 28%
Table 7. Market Share – Outside Monkayo Market
PROPOSED SLAUGHTER FEES
Proposed rate will remain the same from its existing rate based on Section 5G.08
of Municipal Tax Ordinance No. 2018-01 (The Revised Municipal Revenue Code of 2018).
Hogs
Slaughterhouse Services Current Rate Proposed Rate
Ante-mortem Php 15.00 Php 15.00
Post-mortem Php 15.00 Php 50.00
Corral Fee Php 15.00 Php 15.00
Table 8. Current and Proposed Rate for Slaughterhouse Services - Hogs
Cattle
Table 9. Current and Proposed Rate for Slaughterhouse Services - Cattle

Goat
Table 10. Current and Proposed Rate for Slaughterhouse Services - Goat
Projected Receipts from Slaughterhouse Operations

Projected Receipts are computed using projected demand of respective livestock
multiplied with its corresponding proposed rate of slaughterhouse services. Detailed
computation is shown in the appendices.
Year 1 Year 2 Year 3
Hogs Php 1,728,000 Php 1,728,000 Php 1,728,000
Cattle Php 28,080 Php 28,665 Php 29,250
Goat Php 19,200 Php 19,600 Php 20,080
Total Projected
Php 1,775,280 Php 1,776,265 Php 1,777,330
Receipts
Table 11. Total Projected Receipts from Slaughterhouse Operation
The current receipts of slaughterhouse have increased in to 100% through analyzing the
trend of its past three-year receipts of operation. In average, the recorded gross receipts of the
slaughterhouse operation is Php 519, 283.00 which will be doubled if the improvement project will
be implemented in to an average of Php 1,042,058; considering the increase of its service
capacity due to facilities improvement, additional staffing, and expansion of intended market
areas.

PROJECT COST
Presented on the data below is the capital expenditure in carrying out the expansion of the
slaughterhouse. An engineer’s perspective of the proposed building is shown in appendices
including schedule of specifications for the fixtures and auxiliary equipment.
Building Php 12,995,000.00
Fixtures
Hog Line 942,340.00
Cattle Line 1,702,025.00
Equipment
Auxiliary Equipment 604,462.50
Total Project Cost Php 16,243,827.50
Government Grant – DA NMIS Php 8,121,913.75
LGU of Monkayo – Equity Php 8,121,913.75
Table 12. Slaughterhouse Improvement Project Cost
As per Joint DA-DILG-DBM Memorandum Circular No. 1 Series of 2006 Section VI Article 1
that the National Meat Inspection Services (NMIS) thru Local Government Units (LGUs) Meat
Establishment Improvement Program (MEIP) shall shoulder the 50% of total project cost of the
meat establishment. In the case of Monkayo Slaughterhouse Improvement Project the NMIS shall
cover Php 8,121,913.75 of the Total Project Cost of Php 16,243,827.50 and the half amount will
be shouldered by the Local Government Unit of Monkayo amounting to Php 8,121,913.75

PROJECT IMPLEMENTATION SCHEDULE
The improvement project of the slaughterhouse aimed to commence its implementation in
Year 2022. Shown in table 13 is the schedule of quarterly implementation.
QUARTER QUARTER QUARTER QUARTER

ACTIVITIES
1 2 3 4
Pre-project Operation
Construction of Infrastructure
Procurement and Installation of Equipment
Organizing and Staffing
Training and Seminars
Enactment of Pertinent Municipal

Ordinance
Operation and Maintenance

Table 13. Project Implementation Schedule
BENEFECIARY
The joint DA-DILG-DBM Memorandum Circular No. 1 Series 2006 granted an opportunity
for the respective local government unit to receive a grant of 50% of the total project cost. Hence,
the Local Government of Monkayo took the opportunity to expand and improve the existing
slaughterhouse facility that will enhance the quality and safety of the meat products consumed by
the Monkayoans and residents of nearby municipalities. Moreover, the project proposal aims to
upgrade the services and expand the intended market area of the improved Monkayo
Slaughterhouse.

APPENDICES
APPENDIX A – Historical Demand, Projected Demand, and Projected Demand-Target
Capacity of Intended Market Area Outside Monkayo.
Historical Demand of Slaughterhouse Services – Outside Monkayo
The historical demand of slaughterhouse services for identified neighboring
municipalities is computed through estimating a portion of their population, multiplied by the 15
kg per capita which resulted to total consumption in kilogram. A 63 kg was estimated to be the
average dressed weight that will divide to the total consumption to identify the estimated number
of heads consumed by the intended market areas.
Estimated
Estimated
Market Areas Per Capita Total Average
Meat Number of
– Outside Consumption Consumption Dressed
Consumers Heads
Monkayo (kg) (kg) Weight per
Consumed
head (kg)
Montevista 27,702 15 415,530 63 6,596
Compostela 53,481 15 802,215 63 12,734
Trento 32,423 15 486,341 63 7,720
Table 14: Historical Demand of Slaughterhouse Services – Outside Monkayo
Projected Demand – Montevista
From the historical demand data, the projected demand was estimated with an 2.10% average
increase of estimated number of heads consumed meat in Montevista market.

Estimated Number of
Average Increase Projected Demand
Heads Consumed
Year 1 12,734 2.10% 13,001
Year 2 13,001 2.10% 13,274
Year 3 13,274 2.10% 13,553

Table 15: Three (3) Year Projected Demand – Montevista
Projected Demand – Compostela
increase of estimated number of heads consumed meat in Compostela market.
Estimated Number of
Heads Consumed
Year 1 6,596 2.10% 6,734
Year 2 6,734 2.10% 6,876
Year 3 6,876 2.10% 7,020

Table 16: Three (3) Year Projected Demand – Compostela
Projected Demand – Trento
increase of estimated number of heads consumed meat in Trento market.

Estimated Number of
Heads Consumed
Year 1 7,882 2.10% 4,186
Year 2 8,047 2.10% 4,351
Year 3 8,216 2.10% 4,520

Table 17: Three (3) Year Projected Demand – Trento
Projected Demand – Current Capacity Analysis: Montevista
The unsatisfied demand was computed slaughterhouse when projected demand
was analyzed to Montevista slaughterhouse current capacity of capacity of 10 heads/
day.
Unsatisfied
Projected Demand Current Capacity
Projected Demand
Year 1 6,734 3,360 3,374
Year 2 6,876 3,360 3,516
Year 3 7,020 3,360 3,660

Table 18: Three (3) Year Projected Demand – Current Capacity Analysis – Montevista
Projected Demand – Current Capacity Analysis: Compostela
Compostela slaughterhouse current capacity was 3,712 from its daily capacity of 17
heads/ day.
Unsatisfied
Projected Demand
Year 1 13,001 5,712 7,289
Year 2 13,274 5,712 7,562

Year 3 13,553 5,712 7,841
Table 19: Three (3) Year Projected Demand – Current Capacity Analysis – Compostela
Projected Demand – Current Capacity Analysis: Trento
The unsatisfied demand of Montevista slaughterhouse when projected demand was
analyzed to Trento slaughterhouse current capacity was 3,696 from its daily capacity of
11 heads/ day.
Unsatisfied
Projected Demand
Year 1 7,882 3,696 4,186
Year 2 8,047 3,696 4,351
Year 3 8,216 3,696 4,520
Table 20: Three (3) Year Projected Demand – Current Capacity Analysis – Trento

APPENDIX B – Projected Receipts of Slaughterhouse Operations
Projected Receipts – Hogs: Monkayo Market
The total projected receipts from slaughterhouse operation – hogs in Monkayo Market computed
from its Projected demand multiplied to rates proposed for Ante-Mortem, Post-Mortem, and Corral Fee;
Php 15.00, Php 50.00, and Php 15.00 respectively.
Projected
Ante- Post- Total Projected
Demand – Corral-Fee
Mortem Mortem Slaughter Fee -
Monkayo Market Php 15.00
Php 15.00 Php 50.00 Hogs
(Head)
Year 1 16,388 Php 245,820 Php 819,400 Php 245,820 Php 1,311,040
Table 21: Projected Receipts – Hogs: Monkayo Market
Projected Receipts – Hogs: Outside Monkayo
The total projected receipts from slaughterhouse operation – hogs in Outside Monkayo Market
computed from its Projected demand multiplied to rates proposed for Ante-Mortem, Post-Mortem, and
Corral Fee; Php 15.00, Php 50.00, and Php 15.00 respectively.
Projected
Demand – Ante- Post- Total Projected
Corral-Fee
Outside Monkayo Mortem Mortem Slaughter Fee -
Php 15.00
Market Php 15.00 Php 50.00 Hogs
(Head)
Year 1 5,212 Php 78,180 Php 260,600 Php 78,180 Php 416,960
Table 22: Projected Receipts – Hogs: Outside Monkayo

Projected Receipts – Cattle
The total projected receipts from slaughterhouse operation – cattle computed from its Projected
demand – Monkayo multiplied to rates proposed for Ante-Mortem, Post-Mortem, and Corral Fee; Php 20.00,
Php 100.00, and Php 175.00 respectively. The 144 projected demand was estimated from three (3) cattles
in a week, a 50% of 331 live cattle data projected to have an average increase of 2.10%.

Projected Corral-Fee
Demand (Head) Php 75.00
Php 20.00 Php 100.00 Cattle
Year 1 144 Php 2,880 Php 14,400 Php 10,800 Php 28,080
Table 23: Projected Receipts – Cattle
Projected Receipts – Goat
The total projected receipts from slaughterhouse operation – goat computed from its Projected
demand – Monkayo multiplied to rates proposed for Ante-Mortem, Post-Mortem, and Corral Fee; Php 15.00,
Php 50.00, and Php 15.00 respectively.

Projected Corral-Fee
Demand (Head) Php 15.00
Php 15.00 Php 15.00 Goat
Table 23: Projected Receipts – Goat

APPENDIX C – Engineer’s Building Perspective of Proposed Slaughterhouse
Improvement

APPENDIX D – Schedule of Specifications for Fixtures and Equipment


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Monkayo Slaughterhouse Improvement

This project proposal is a collaborative effort of Municipal

Marcelino F. Cuyab, Ph.D. – Academic Program Head, BA

Dr. Christopher M. Edjic. – Municipal Agriculturist

Monkayo Slaughterhouse Improvement Project Proposal – 2021 Page 1 | 36

Table of Contents Page No.

Monkayo Slaughterhouse Improvement Project Proposal – 2021 Page 2 | 36

Table No. Title Page No.

Table 2 Projected Demand of Slaughterhouse

Table 6 Projected Demand – Outside Monkayo Market 9

Table 8 Current and Proposed Rate for Slaughterhouse

Table 9 Current and Proposed Rate for Slaughterhouse

Table 10 Current and Proposed Rate for Slaughterhouse

Table 11 Total Projected Receipts from Slaughterhouse Operation 11

Table 12 Slaughterhouse Improvement Project Cost 12

Table 14 Historical Demand of Slaughterhouse Services

Table 15 Projected Demand – Montevista 15

Monkayo Slaughterhouse Improvement Project Proposal – 2021 Page 3 | 36

Figure No. Title Page No.

Monkayo Slaughterhouse Improvement Project Proposal – 2021 Page 4 | 36

The Municipality of Monkayo currently has policies in place for Municipal

transport and post-abbatoir control.

The project is expected to deliver a sustainable, ecologically safe, and high-quality

expected from the project include,

b. Operation of the Municipal Slaughterhouse compliant with environmental laws and

regulation, ensuring continued compliance with national standards

Monkayo Slaughterhouse Improvement Project Proposal – 2021 Page 5 | 36

partner with its BAT program.

TECHNICAL ASSESSMENT OF THE PROJECT

Historical Demand – Monkayo Market

Shown in the table 1 below is the historical demand of Monkayo market,

2018 2019 2020

Meat Vendors 4,641 4,819 4,841

Individuals 10,829 11,244 11,210

Total Historical Demand - Monkayo 15,470 16,063 16,136

Table 1. Historical Demand of Slaughterhouse Services - Monkayo

Monkayo Slaughterhouse Improvement Project Proposal – 2021 Page 6 | 36

Shown in the table 2 is the projected demand of Monkayo market. Based

Average Increase Projected

Year 1 16,051 2.10% 16,388

Year 2 16,388 2.10% 16,732

Year 3 16,732 2.10% 17,083

Table 2. Projected Demand of Slaughterhouse Services - Monkayo

Slaughterhouse current capacity is averaging in to 20 heads per day with

Figures are in number of heads.

Daily Monthly Annually

Table 3. Current Service Capacity

The slaughterhouse expansion project will triple its current service

Monkayo Slaughterhouse Improvement Project Proposal – 2021 Page 7 | 36

Current Capacity Target Capacity

Slaughterhouse Service Capacity 7,200 21, 600

Table 4. Target Service Capacity

Projected Demand – Target Capacity Analysis

Target Service Capacity of slaughterhouse is analyzed against the

Projected Demand of Monkayo market which resulted to an excess capacity that

can accommodate the demand of target markets from nearby municipalities;

Montevista, Compostela, and Trento. Figures are in number of heads.

Year 1 21, 600 16,388 5,212

Year 2 21, 600 16,732 4,868

Year 3 21, 600 17,083 4,517

Table 5.Projected Demand – Target Capacity Analysis of Slaughterhouse

Projected Demand – Outside Monkayo

Projected demand of the target nearby municipalities are shown on table