Professional Documents
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EXECUTIVE SUMMARY
Business Name and Location
The R&J Hog and Poultry Farm is a start-up venture for long-time friends Rockie George
Bogenschutz and Lucio “Jojo” Avergonzado. The farm is intended to utilize Jojo’s 1-acre
vacant lot in Sikatuna, Talibon, Bohol and will take advantage of the area’s resources suitable
for hog and poultry raising.
In its first year of operation, the farm will focus on hog raising, producing quality hogs to supply
the increasing market demand of hog meat in Bohol and Cebu. It will also sell quality piglets in
the said areas. In the second year of its operation and onward, the farm will diversifies to
include poultry products focusing on chicken meat and egg production.
The Market
Philippine hog production is a Php180 billion industry in the country and it accounts for about
83% of the total live stock productions in the country. As of January 2010, the total number of
pigs is about 13.4 million head, of which 71 per cent are from backyard farms and 29 per
cent are being raised by commercial farms. Because of inadequate pork supply, the
Philippines is importing the three percent of its total pork needs and the figure will still
increase given that the pork demand has steadily grown according to the Department of
Agriculture. This scenario is the guiding hope of the R&J Hog Farm to help meet the
increasing pork demand in the market and contribute even in a fraction to curve down the
forecasted increase of pork importation of the country.
Bohol and Cebu are the two areas of focus to market the farm’s products. It will supply small
and large meat stores in Bohol and will penetrate Cebu’s market as soon as it is expedient to do
so,taking in consideration the transportation costs and the farm’s competitiveness to Cebu’s
meat suppliers.
The farm will be financed primarily by Rockie and his Jojo will provide the needed site for the
business as well as the technical know-how on hog and poultry raising with the assistance of
his brother Jego .Rockies financing will provide the sufficient cash flow for the farm until it can
start making revenue to cover the entire operation costs.
Figure1. Overview of the estimated investment cost, sales, and net profit for the first year of
operation
The farm will be co-owned by Rockie Bogenschutz and Lucio “Jojo” Avergonzado as partners.
Rockie will provide the initial investment financing and Jojo will manage the day-to-day
operation of the business including managing the cash flow, contacting buyers, and identifying
potential markets. The farm will be housed in a 1-acre lot owned by Jojo’s family and is located
10 kilometers outside the urban areas.
A hog and poultry farm is a kind of business where only few labors are required and the
majority of the cash flow will go to the cost of feeds. The expenses are spread out over the
entire 4 months period until the hogs are ready to be sold. Therefore it is necessary to have a
sufficient cash flow for the entire 4-month period. The R& J Hog and Poultry Farm’s first batch
of hogs will be financed by Sir. Rockie. This will provide the sufficient cash flow for the farm
until it can start making a profit.
Start-Up Funding
Start-Up Expenses to fund…………………………………………….Php 93,000.00
Start-Up Asset to Fund………………………………………………….Php 20,000.00
Total Funding Required………………………………………………Php 113,000.00
The R & J Hog and Poultry farm will focus on hog production in the first year of operation. It
will sell live hogs and fresh meat to local meat stores in Bohol and will penetrate Cebu’s market
as soon as it is expedient to do so, taking in consideration the transportation costs and the
farm’s competitiveness to Cebu’s meat suppliers. In its second year of operation, it will diversify
to include poultry products focusing on chicken and quail meat and egg production. The swine
wastes are very good for fertilizer and poultry wastes are an excellent fertilizer and can be sold
for 150 per sack. The farm has a goal to establish a meat store in Talibon in the 3 rd year of
operation.
The farm’s first batch of 20 hogs will start this month of January 2012.It can be sold after 4
months time.
Estimated Net Income for 4 months for first batch…… Php65, 000.00
It is the strategy of the R&J Hog and Poultry farm to capitalize on the extensive knowledge of
Rolando “Jego” Avergonzado in hog farming as well as taking advantage of the low labor and
housing cost of the business. Because the expenses for feeds accounted to almost three-fourth
of its total expenses, the farm will raise alternative foods to supplement the dietary needs of
the hogs. It will raise sweet potatoes and cassavas in the farm lands of Avergonzado family.
This will reduce the feeds expenses up to 10 percent.
Management Team
Lucio “Jojo” Avergonzado will serve as the general manager of the farm. His duties
include coordinating with the suppliers of piglets, feeds, and other needs of the farm,
contacting buyers, and identifying potential markets, as well as controlling the cash flow.
Rolando “Jego” Avergonzado” will serve as the farm’s operation assistant and caretaker.
He has undergone seminars in hog farming and his hands on experience in hog raising
has made him knowledgeable about hog business. His duties will be to oversee the daily
operation of the farm including feedings, facility maintenance and assist Jojo in his in
marketing and developing the business.
Jacqueline “Jackie” Avergonzado will serve as the farm’s accountant. She will be the
bookkeeper. She will document the entire farm’s expenses as well as prepare reports for
those. Her previous job as an accounting clerk made her qualified to take the job.
Nothing follows