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    Feasibility study Cattle Fattening.

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    © All Rights Reserved
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    36 views24 pages

    Feasibility Study

    Uploaded by

    Joemar Dionaldo
    Feasibility study Cattle Fattening.

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    FEASIBILITY STUDY LIVELIHOOD: CATTLE FATTENING MAMBULOD Pe CCRT EST. 2022 Scanned with CamScanner Republic of the Philippines Province of Negros Orient Municipality of La Libertad BARANGAY MAMBULOD A Feasibility Study in Livelihood: Cattle Fattening Project CHAPTERI Project Study A small business can be started either as a sole proprietorship (single owner will full business liability and responsibility) or as a partnership between two (2) or more people. Registering the business and drawing up a partnership agreement requires a lawyer and legal fees. Before opening up your small business, a lot of research and planning is required. Cattle are one of the demands or sources of food in our locality. It is a very profitable business and is of great consumer demand, This Business is beneficial to small-scale farmers especially in our barangay through financial security derived from small-scale raising activities. HIGHLIGHTS OF THE PROJECT |. Product/Services Cattle fattening, also called livestock farming, is all about mass breeding of cattle for the sole aim of making proa fit and it is, of course, a thriving and profitable business because of the usefulness of beef and other products from cattle. People eat beef, drink their milk, and use their fur and skin. With cattle milk, cheese can be made, along with other dairy products, 2. Location As a novice in the cattle fattening/ranching industry, our group or association together with our BDRRMC, and our Community Volunteers decided to have our firm in our barangay itself, which Barangay Mambulod, in the Municipality of La Libertad, province of ‘Negros Oriental, Philippines, and itis the same place or site where our head office will locate. The location has lots of advantages due to its accessibility to the nearest auction markets. 3. Nature of Business Cattle fattening involves numerous farms and operators, each serving a unique role in the process. At each stage, farmers and ranchers strive to provide safe, high-quality beef for consumers while following the best practices for raising cattle humanely. Cattle fattening/ranching is a renowned profitable business since people always rave cuisines made of beef. It is a production type wherein farming, weaning cultivating of cattle is maintained. 1 Scanned with CamScanner BRIEF DESCRIPTION OF THE PROJECT ‘The Livelihood: Cattle Fattening project was being identified during the conduct of R Disaster/Damage Assessment and Needs Analysis. Based on the assessment result there are 163 households in our barangay with low income or less income. That’s why we decided to propose a project that can suffice our daily needs for our family to KALAHI-CIDSS: NCDDP Additional financing. Cattle to be procured are 30 heads, 18 months old, and at least 250 kilograms in weight. ‘The traditional native house's lower area—the part of the ground below the elevated first floor was where fowl and cattle were kept and raised. Our goats from the TUPAD-DOLE project will also be our additional animals to raise. The carabaos that have always been native domesticated animals in the country continued to be bred both for their meat as well as their use as labor animals on farms, Nature of the Firm's Activity The body has decided to involve in this kind of industry to provide additional income, quality of beef, which tends to inelastic demand in the markets. Upon engagement, sufficient production of meat will be achieved. This would help the country to be globally competitive, which will lead to economic development progress, especially in barangay Mambulod, La Libertad, Negros Oriental. ‘This feasibility study aims to answer the question in the different aspects of operation of the business. Marketing Aspect ‘What is the target market of the business? Who are the competitors? ‘What are the marketing strategies to be used? How will the business and the products being introduced to the target market? How will it remain stable? vvvvvV Management Aspect > What are the risks associated with the sourcing of raw material, or holding the line ‘on costs of services? > What are the activites to be conducted during the operation period? > What is the most appropriate form of business organization to establish? > What design of the organization best suits the managerial needs of the business? > What are the qualifications and duties to be performed by the employees? Technical Aspect > What isthe best size of the establishment for Cattle Fattening or Cattle raising? > Where is the most strategic site to locate the business? > What isthe best waste management system to be used or applied? Financial Aspect > What will be the source of capital? > How much does the total project cost? > What method of financing will our firm apply? Scanned with CamScanner Socio-Economic Aspect > What benefits will be establishing this kind of business provide to the government and the country? > What benefits will be the product provide to the customer? > How will the business benefit the lives of the people within its community? PROJECT SUMMARY 1) Market Feasibility In this aspect of our study, we focus our vision on the factors that will surely affect ‘our target market. We take into consideration that whichever market strategy we will apply to this business/project venture will be efficient and effective in our respective fields. The team or the body had analyzed carefully the demand and supply that will best answer the needs of our market. 2) Technical Feasibility Our technical feasibility study deals mainly with the market size, area, product definition, and growth. We have accounted for all the principal things that an entrepreneur must know before and after establishing the business/project. Most especially is to include the process ‘and methods of production that will be of great help to run this kind of project/business. 3) Management Feasibility "As we proceed to the management feasibility study of our firm, we include several important factors that will enhance the organization of our projecVvbusiness. An example of this is the selection of business ownership that in our firm's standing is a partnership. Incorporated also fon our management aspect is the Association's capitalization, organizational structure, manpower/members requirements, compensation, association's by-laws or constitution and by- laws, Sub-project Policies on Cattle: Fattening, and numerous requirements. 4) Financial Feasibility This section of our feasibility study explains all the important details that quantity the result of marketing, technical, management, taxation, and legal phases of the project, and expresses in peso terms the possible outcome of operating the project. 5) Socio-Economic Aspect In this part of our study, we duly integrate the social benefits that our firm or ‘association will be able to impart to society. As part of this we include the following: ‘ Income — we considered the benefits it will to families and individuals in our community/barangay. 4 Taxes—we indicated the number of revenues it could raise for the government. 4 Prices — considering the influence of the proposed project on the supply of goods. 4% Local Producers — considering the use of local machinery, equipment, and labor. 4 Community ~ in terms of benefits, the proposed projec/business will indirectly or directly share on the development of the place and community. Scanned with CamScanner PROJECT TIME TABLE GANTT CHART 72021 Jan | Feb Mar | Apr May] Jun Jul | Aug | Sep | Oct Nov | Dec 2022 | Feb (Gan) Mar | Apr May | Jun Project, proposal and study preparation (Including RDANA) Project Development Workshop ‘Community Training Request for Fund Release Document Preparation Preparation of Cattle house, Procurement and Grant downloading Sut of, | Operations Scanned with CamScanner CHAPTER IL INTRODUCTION Making solid business decisions can be the difference between striking it rich and losing a Jot of money. On a Cattle Fattening project, one of these important decisions that have to be made is the selling of livestock. This single decision can be the hinge between a successful year of profit and a tough year of despair. ‘Ona Cattle of Fattening or ranching cattle, one of the most important products that are sold is the beef from cattle. The beef from the cattle is raised each year to be sold as a uniform group at a time of choice decided by the producer. To earn the most profit each year, choices have to be ‘made that will ensure the producer maximum amounts of money to be made. Choices of the producer such as which weight they will be sold at, and at which time of the year they will be sent. ‘to market are important factors to Success. The Philippines, before it was called the Philippines, has always favored pork. Pig meat ‘was often raised as offerings to the gods to curry their favor. We the Filipinos choose foods that cannot be completed without any pork dishes. The Cattle were brought here in the Philippines from other countries, particularly from Mexico, but the Spaniards were faced with the unexpected challenge of helping the animals adjust to an entirely new setting, In the Philippines, there are three most common kinds of beef, Local gained-fed, imported beef, and Local grass-fed. Almost all cattle operations in Luzon (except for some dairy and breeding operations) raise cattle for fattening and for supermarket trade. Supermarkets pay a premium for beef and thus farmers who sell to these markets are able to get more money for their cattle. However, supermarkets will only get meat that measures up to a certain weight. This is so that the supermarkets are able to maximize meat to bone ratio. And, since the supermarkets will only accept this bulky weight, farmers have to make sure that their cattle weight at least 420-500 ‘kilograms when they bring them to the auction market. Now, to get this weight that the buyer or supermarket will buy the cattle farmers will have to fatten their cows. If they left their cattle on their natural diet of grass and allow them to leisurely graze, they won't get the required weight in time and so they lose on the sale. But how do farmers make sure they have fattened their cows in a short time? They fatten it up with grain and feed by-products. Cow are kept in feedlots and fattened up with grains/feeds. Since grain/feeds are quite expensive in our locality, they substitute also grain/feed by-products such as hog grower feeds and the like. How much grass does the cattle/cow actually eat? It varies from area to area. The bigger the area, the more capital it has to supplement with grain. A smaller area cannot afford a lot of grain/feed or grain/feeds by-products. On average, local fattening operations use about 60% food concentrate and 40% grass. Farmers are often forced to implant growth-inducing hormones to make sure the cattle are fattened in record time. However, in Local grass-feed cattle, itis the beef that used to be the beef no one wanted to sell or buy. For the large-scale farmers, it was simply not economical, For the consumers, there ‘was not enough fat! But with the increasing consciousness on the benefits of grass feed beef (good fat, high in Omega 3 and CLA, and leaner than skinless chicken0, it has since climbed up the ranks and has now won a niche market. Local grass feed cattle meat comes from very small farms, mostly family farms. The breeds are of the temperate breeds. The farmer to cow ratio is usually 1:1 of 1:2. ‘Small farms with a few cows don't need extensive land, fertilizer, pesticides, or heavy equipment. Also, they feed on their natural diet of local grass, building up their immune system so there is no need for antibiotics at all. Eighty percent of local grass feed cattle at their market age, will only ‘weigh between 320 to 350 kilograms live weight. Scanned with CamScanner BACKGROUND OF THE STUDY Firm's Short-Term Goals From the time when our projec/business implemented, our main concern will be is to shorten the time taken period for us o recover or to increase our income or investment. We also aspire to meet the existing demand for cattle fattening/ranching with thud quality raw materials. In addition, for us to be familiar with other buyers of cattle, so we can launch a good correlation ‘with our consumers or customers. Firm's Long-Term Goals Every business firm has its own vision for expansion, improvements, and innovations. Like any other firm, our goal is to expand our production not only in our barangay but also to other barangays and to the whole municipality of La Libertad, Negros Oriental. It aims to accumulate sufficient funds in order to expand the business and provide improvement in the facility, equipment, and everything else used in operation, and to increase production, Plans and Programs Each firm has plans and programs to make the consumers interested. Here are the several plans and programs that we look forward to chasing in the future. We aim to be one of the leading companies in cattle fattening/ranching. Italso looks forward to gaining double profit. In the future, it aims to expand through meat processing. ur goal is to meet the satisfaction of the consumer through delivery of safe and healthy cattle at any time and to build good relationships among the consumers. It seeks to be able to open new jobs. BUSINESS VMGO (VISION, MISSION, GOAL, and OBJECTIVES) ‘These are the VMGO (Vision, Mission, Goals, and Objectives) of our Livelihood: Cattle Fattening that serve as guidelines for the successful operation of the business. Vision By 2022, our Livelihood: Cattle Fattening will become the leading trusted and reliable cattle industry service provider in La Libertad, Negros Oriental. Mission Provides the finest quality of cattle to customers/consumers by delivering friendly, express and personalized service with competitive prices. Goals ‘Aims to provide high quality customers’ services through environmentally friendly ‘operations and to ensure customers’ satisfaction and loyalty to gain profit. Scanned with CamScanner Objective As a newbie or beginner in the Cattle Fattening/Ranching project, Aims to develop a commercially viable self-sustaining cattle firm that will generate additional income to the Mambulodnons’, provide employment and help fulfill an increase in demand of beef cattle not only in our barangay but to the whole Philippines, SWOT (Strength, Weaknesses, Opportunities, and Threats) ANALYSIS These are the Strength, Weaknesses, Opportunities and Threats that can affect the business operations, Strengths ‘Our business offers competitive prices and provides quality service, focusing on customers convenience by having pick-up and delivery service. Plenty of water supply and large market. ‘Weaknesses Has problems in terms of finances, especially the start-up capital. High feed costs and negotiation power with customers Opportunities Has far a location from other competitors which gives the business an opportunity of for the market share. The business will be easily accessed by its customers because it is located in barangay Mambulod, which is 14 kilometers away from the town proper of La Libertad, province ‘of Negros Oriental. The business offers cheap labor in the market. Threats Has one (1) existing competitor in the city, located near barangay Solonggon, La Libertad, ‘Negros Oriental. Natural calamities or disasters are inevitable and can ereate a big impact to the business operation. Another factor that threatened the business is the decreasing price or decline in cattle demand. The business may be threatened with the disease outbreak of cattle, increase in feed costs and change in government regulations. CHAPTER IIT MARKET STUDY This chapter will discuss all the marketing aspects of the project. The discussion will include the general market description, the target markets, the general marketing practices, demand, supply, the demand and supply analysis, the proposed marketing program, and the marketing strategy. The data and other figures were gathered through research using secondary data. ‘The secondary data were gathered from several government agencies and offices such as Department of Environment and Natural Resources (DENR), Bureau of Agricultural Statistics (BAS), Department of Agriculture (DA), or the Municipal Agriculture Office of LGU La Libertad. ‘The use of marketing strategies and promotional activities such as advertising, referrals and transit advertisement and highly sulficient to increase the number of customers and to increase the level of revenue. Scanned with CamScanner TARGET MARKET __ Barangay Solonggon isthe rectangular inland barangay of the municipality of La Libertad, province of Negros Oriental, bounded by barangay Manghulyawon, Cangabo, and Maragondong that were the auction market located. It is an open space for cattle, MARKETING STRATEGY ‘The project will use tarpaulin and posters in its introductory stage as well as through Transit Advertising, which means the use of vehicles available to carry the advertising materials for the clients to be aware of the existence of the proposed project/business. MARKETING 4 P's Product ‘The livelihood program we proposed is a partnership projecVbusiness with interests in providing the public markets with superior quality cattle, It mainly involves purchasing, raising, and slaughtering cattle. The focus of our project/business is to sheltered feeding the cattle instead of open grazing, By the time the cattle reach its market weight and ready to sell or bring it to the ‘auction market. It is manned by a crew and merchandisers trained to assure customers of courteous and efficient service. Price ‘The market structure of our project falls under a perfect competition where there are many other businessmen or cattle firms that offer a homogenous product. We are price takers yet providing high-quality fattened cattle to the consumers/customers. This kind of structure will make ‘normal profits and prices. Place Located at barangay Mambulod, in the municipality of La Libertad, province of Negros Oriental. This location is highly accessible to our target markets and it is near to Solonggon Auction Market. We decided to use various methods to promote its products; mostl advertisements such as flyers, tarpaulins, transit advertising, and internet advertising so we can reach valuable customers. Scanned with CamScanner HISTORICAL SUPPLY ANALYSIS The following table shows the historical supply of Cattle in La Libertad, Negros Oriental during the period of 2018-2021 ‘Table 1: Historical Supply of Cattle in La Libertad, Negros Oriental (2018-2021) Year Supply, 2018 8282 2019 8389 2020 8496 2021 327 CHAPTER IV Technical Study PROJECT LOGO ‘ MAMBULO! D PTAA NCAT Pour o THE PRODUCT Cattle are commercially known in the market as they are raised for meat, dairy products, and hides. They are often raised by allowing herds to graze on the grasses of large tracts of rangeland. Raising cattle in this manner allows the use of land that might be unsuitable for ‘growing crops. The most common interactions with cattle involve daily feeding, cleaning, and The proposed business/project falls under a production type of business/project providing the resellers quality catle for their reselling purposes, particularly those meat vendors and even haulers in different market in La Libertad, Negros Oriental. The project will establish 30 heads of cattle to be fattened for its first eycle/term of implementation or operations. A variety of upgraded cattle that we planned to purchase. Scanned with CamScanner CARING OF CATTLE, ‘© Feeding - Proper nutrition is the key to successful cattle r quality of feeds for cow/cattle is a combination of achieving high energy and good health condition. Feeds are grouped into basal type, which is low in fiber and high in energy while the other, the protein feeds are low in fiber-containing 20% or more crude protein, ‘The ranchers use molasses or sugar mixed with honey and soya and fresh grasses to feed the cattle. Ground ingredients are necessary to ensure selective feeding, Its less expensive and consumes less effort. ‘COMMON DISEASE OF CATTLE 1.) Pneumonia: Inflammation of the lungs leads to colds and coughing of pigs’ pneumonia is very difficult to prevent and eradicate. Its usual causes can be of climatic changes, stress due to transport and movement, and parasitic load. Treatment: © Antibiotics, Anti-inflammatory Prevention and Control: (© Improve nursing care © Feed them adequately ‘© Perform vaccination and deworming 2.) Rumen Acidosis: Rumen acidosis is an ametabolic disease of cattle. Like most metabolic diseases it is important to remember that for every cow/cattle that show clinical signs, there will be several more which are affected sub-clinically. Acidosis is said to occur when the pH of the rumen falls to less than 5.5 (normal is 6.5 to 7.0). In ‘many cases, the pH can fall even lower. The fall in pH has two effects. Firstly, the rumen stops moving, becoming atonic. This depresses appetite and production. Secondly, the change in acidity changes the rumen flora, with acid-producing bacteria taking over. They produce more acid, making the acidosis worse. The increased acid is then absorbed through the rumen wall, causing metabolic acidosis, ‘which in severe cases can lead to shock and death of cattle. Treatment: © Detected at the time of depressed ruminal pH, there is no specific treatment for it. Secondly, conditions may be treated as needed. Prevention: ©. The key to prevention is reducing the amount of readily fermentable carbohydrate consumed at each meal. This requires both good diet formulation (proper balance of fiber and non fiber carbohydrates) and excellent feed bunk management, Animals consuming well- formulated diets remain at high risk for this condition if they tend to 10 Scanned with CamScanner cat large meals because of excessive competition for bunk space or following periods of feed deprivation. ‘© Supplementing the diet with direct-fed microbial that enhance lactate utilizes in the rumen may reduce the risk of sub-acute ruminal acidosis, Yeasts, Propionibacterium, lactobacilli, and enterococci have been used for this purpose; lonophore (eg, monensin sodium) supplementation may also reduce the risk by selectively inhibiting ruminal lactate producers. 3) Foot and Mouth Disease Foot-and-mouth disease (FMD) is a severe, highly contagious viral disease of cattle and swine. It also affects sheep, goats, deer, and other

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