Republic of the Philippines

Cordillera Administrative Region

Province of Ifugao
Ifugao State University
Lagawe Campus

A FEASIBILITY STUDY ON BROILER PRODUCTION FOR LJ’s POULTRY

FARM

In partial fulfillment of Poultry Production Activity

SUBMITTED BY: Taberna, Lovely Jane C.

SUBMITTED TO: Sir Cesar Mendigoria

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 CHAPTER I
EXECUTIVE SUMMARY

I. INTRODUCTION

Poultry production is one of the world’s most popular meats right after the
pig industry and is common in the Philippines. It is not only for meat but can also
be kept for their feathers and eggs. Considered reason for the continuous
production of poultry were mainly for personal consumption, others took it into
business while some took it originally as pet for cockfighting and for other special
ceremonies where in Ifugao’s were considered to be one of the highly consuming
provinces.
Moreover, broiler chickens are bred for rapid growth to reach maximum
meat production but egg laying chickens are bred for high production of egg with
the highest efficiency (Arthur and Albers, 2003). Commercial chicken are fast
growing poultry birds that are kept and used only from meat purposes and
produce tender meat with soft pliable and flexible met cartilage. They can attain a
live body weight of 1.5 kilogram or more when consuming 2.75 to 3 kilogram of
feeds in 37-42 days of age.

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II. PROJECT SUMMARY

A. Name of the business and location

The business is located at sitio Loglog, Burnay, Lagawe, Ifugao. It
will be named LJ’s Poultry Farm.

B. Descriptive Definition of the Project

LJ’s Poultry Farm is a supplier of chicken products (broilers) to the
barangay and to nearby barangays.

C. Project Long-Range Objectives

With the increasing needs for consumption, it is a substitute for a
high price meat product to chicken but however the main objective is to
maintain a continuous supply of fresh products to consumers.

D. Highlights of the project

a. Mode of financing
It is the proprietor’s money to finance the business
cost starting from pre-operating cost and beyond. Other cost will
be referred to the savings of the owner.

b. Investment cost
Materials needed for the Cost
construction of poultry farm
Wood 0
4 Yellow bulbs 200
2 Pair Socket and extension 350
2 kilos Nails 150
Labor cost for 2 days 800
Total cost 1,800

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 SUMMARY OF FINDINGS

1. MARKETING ASPECT
The marketing aspect provides a brief description about poultry
production. This is essential in determining the demand and supply of the product
to be provide through which the price and projected sales were derived with the
use of the information gathered from suppliers of feeds and hog raiser.

2. TECHNICAL STUDY
The technical study provides the description of the service along with
the terms and conditions and schedule and process of service rendered. The
different equipment, furniture and fixtures, other materials and other aspects
relative to the construction of the terminal are identified under this section. Site
Location and Site Development Plan is also found in the technical aspect of the
paper which provides a clear perspective of the location of the business and
provide a basis for deriving its capacity.

3. FINANCIAL ASPECT
The financial aspect shows the projected comprehensive financial statements
of the terminal covering a 3-year period. This is divided to the pre-operating cost,
statement of cash flows, income statement, balance sheet, its corresponding
notes and schedules. After completing the financial statements, financial analysis
was done with the use of the different financial ratios.
The analysis of the financial statements projects an increasing profit which
show that poultry production is able to minimize its cost while maximizing its
revenue. Efficiency results are favorable, indicating the business’ invested
resources are being used well enough to maintain and generate increasing level
sales. Stability ratios shows that the company’s assets are financed by capital
only.

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 4. MANAGEMENT STUDY
The management study reflects the business organization, its
organizational structure, number of personnel needed and their qualifications as
well as their respective compensation. The personnel needed for the business
are manager, utility worker, and a bookkeeper.

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 CHAPTER II

MARKETING ASPECT
The market aspect of a business is essential and necessary in determining
the ample demand for the products and services to be offered by the business
which will indicate an opportunity of having a profitable share in the market. The
market study also provides information as to the assessment of the target market
–the prices they are willing and able to pay for the products and services. It also
provides the introduction of the service business or the type of business industry
and the frequency as to the willingness of the target market for the existence of
this business in the target market place.

Production Description
Broiler will be used in the production to suffice with the increasing price of
meat products and cope with the decreasing supply of chicken in the locality. It is
fast growing than any other kinds of chicken and could be easily managed.

Location
The broilers will be sold in retail and wholesale in the barangay of Burnay
and to nearby barangays. It is one kilometer away from the road.

Supply and Demand Analysis

Determining the demand is important in knowing that level of profitability of a
business. In this case, a high demand can be interpreted that high profit can be
generated through it.
Chicken meats can always be at any time to consume. While considering
birthday celebrations and other occasions, it never misses on the menu.

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The figure below shows the flow of production distribution

PRODUCER

WHOLESALER

RETAILER

CONSUMER

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 CHAPTER III
TECHNICAL ASPECT
The technical aspect discusses how the goods are to be produced, when
the goods to be produced, how much will it cost to provide the goods, where to
offer the goods and what technology to be used

Production Site Description

The project will be conducted at Loglog, Burnay, Lagawe, Ifugao. The
chicken cage has a dimension of 3 meters by 4 meters and is 15 meters from the
barangay road. The location is far from other residents. It has good water system
because it does not affect the community

Table 1: Materials needed for the construction of Poultry wood cage.

Costs are based on recent reasonable price of the market.
Materials needed for the construction of poultry wood cage Cost
Wood -
Nail 200
Net 500
Total 700

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Production Schedule

Housing preparation will be done on the first week of February 2023 in

preparation for the production.

Table 2: Projected Weekly Activities in Poultry Production from the month

of February to July 2023.

Activities Feb March April May June July

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Disinfection x x x
Purchase of broilers x x x
Purchase of feeds and x x x
medicines/vitamins
Feeding and water management x x x x x x x x x x x x x x x x x x x x x
Care and maintenance x x x x x x x x x x x x x x x x x x x x x
Marketing x x x x x x x x x
Recording x x x x x x x x x x x x x x x x x x x x x x x x

NOTE: Housing preparation will be done on the first week of February 2023 in
preparation for the production. Disinfection will be done on February 6, 2023. The
purchase of broilers will be done on February 8, 2023 at Lamut, Ifugao. The
feeding of poultry is done every day, the same with care and maintenance and
recording.

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Production Process

1. Housing preparation
Woods are provided and will be used in the construction of the cage. It can
be used in a longer time for woods are made out Nara.

2. Disinfection
Zonrox will be used to disinfect the cage to eliminate harmful microorganisms
that may cause diseases to the broilers.

3. Purchase of stock
The chicks will be purchased in Lamut, Ifugao. The age of the broiler is 4 day
old and the cost of each is 65 pesos/head.

4. Purchase of feeds and medicines

The purchase of feeds and medicines will be at Joyce Agrivet, located in Pob.
East, Lagawe, Ifugao.

5. Feeding and Water management

The feeding will be dry feeding and done 2 times a day. The broilers will be
given stress reliever just after they were purchased. They will be given feeds
throughout disposal and water will be provided daily through water feeders.
The feeding will be done at 6-7 o’clock in the morning and 5 o’clock in the
afternoon.

6. Care and maintenance

Cleaning twice a day for proper sanitation.

7. Recording
Recording will be done daily to ensure that important details and the activities
are recorded. The record will be the basis for evaluation and serves as guide
in the next production.

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 CHAPTER IV
MANAGEMENT ASPECT

Management study describes the form of business organization that is

best suited for the proposed subject, the organizational structure, the number of
personnel needed, and their compensations.
Since the business is just starting to operate, the proponent decided that he
will be personally in charge in the operation of the business.

Number of Personnel Needed

Poultry Production is in need of one (1) person as the manager, bookkeeper,

and at the same time as worker. Raising one hundred (100) heads of broilers can
be done by one (1) person, he/she will be in charge of the overall supervision of
the farm and responsible for the general care of the broilers.

Organizational Chart

The figure shows the role of one (1) person as manager, bookkeeper and the
same time as the worker.

LOVELY JANE
MANAGER BOOKKEEPER
TABERNA

WORKER

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 CHAPTER V
FINANCIAL ASPECT

In the financial aspect portion of the feasibility study, it shows the viability
and practicability or capacity of the projected business undertaking. It will also
determine the potential profitability of the business.

Under this study, the researchers have gathered some facts in order to
make assumptions that are well-considered, realistic, practicable and
reasonable. These assumptions would help the researchers in the formulation of
projections needed in the study.

A. Source of Fund – Savings (Personal Fund)

B. Total Project Cost-The total project cost is Php. 13,050 which is the
basis for the starting capital of the production.

Table 3: Projected Cost of Production for the year 2023.

LOVELY JANE C. TABERNA
Projected cost of production
For the year of 2023
Particular Quantity Price Total
STOCK
Broilers 100 65 6,500
Sub-total 6,500
FEEDS
Feeds 1/2 sack 38 950
Stress reliever 2 sachets 50 100
Vitamins 1 bag 20 200
Sub-total 1250
Housing 1,800
Sub-total 1,800
Labor cost 1 month 1000 3000
Sub-total
Miscellaneous fees (stock and feeds) 500

Sub-total 500
Grand total 13,050

Note: Projected cost of Production are based on interviews of recent producers

of poultry. Prices are based on recent suppliers.

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 Projected Statement of Financial Performance
Year 2023

Table 4: Income Statement for the year 2023.

LOVELY JANE C. TABERNA

INCOME STATEMENT YEAR 2021
A. GROSS SALE 1ST cycle 2nd cycle 3rd cycle TOTAL
Broilers:100 heads x 1 kg x 180 18,000 18,000 18,000 54,000
Empty sacks :2 pcs. X 15 30 30 30 90
Total sales 18,030 18,030 18,030 54,090
A. LESS: COST OF PRODUCTION
Broilers: 100 heads x 65 6,500 6,500 6,500 19,500
Feeds 1,900 1,900 1,900 5700
Vitamins 200 200 200 600
Poultry wood cage 1800 1800
Electricity 200 200 200 600
Stress reliever 150 150 150 450
Sub-total 10750 8950 8950 28650
Gross income 7280 9080 9080 25440
B. Less: other expenses
Labor expenses 3,000 3,000 3,000 9,000
Net income 4280 6080 6080 16440
ROI= Net income/total cost OF 39.1 ROI 55.5ROI 55.5 ROI 125.97ROI
INVESTMENT x 100

Note: The table shows that year 2023 income has a good impact at starting
point. It implies that poultry production is feasible and profitable. In the first cycle
of production it has a very low ROI due the infrastructure needed for the
production.

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Table 5: Balance Sheet

LOVELY JANE C. TABERNA

BALANCE SHEET YEAR 2023
1ST cycle 2nd cycle 3rd cycle
ASSETS
Cash 13,050 13,050 13,050
Poultry wood cage 1,800
Total assets 14,850 13,050 13,050
LIABILITY AND EQUITY

Capital 13,050 13,050 13,050

Net income 4.280 6,080 6,080
Total liability and equity 17,330 19,130 19,130

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 Table 6: Statement of Cash Flow year 2023.
LOVELY JANE C. TABERNA
STATEMENT OF CASH FLOW YEAR 2023
1st cycle 2nd cycle 3rd cycle TOTAL
Cash flow from operating
activities
Cash inflow
Sales 18,030 18,030 18,030 54090
Cash outflow
Payment for
Broilers : 100x65 6500 6500 65000 19500
Feeds 1900 1900 1900 5700
Labor cost 3,000 3,000 3,000 9,000
Vitamins and stress 350 350 350 1,050
reliever
Total cash outflow 11750 11750 11750 35250
Cash flow from investing
activities
Poultry wood cage 1,800 1,800
Cash flow from financing
activities
Owners’ capital 13,050 13,050 13,050 39150
Total cash flow 24,800 24,800 24,800 74,400

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 CHAPTER VI
CONCLUSION AND RECOMMENDATION

In conclusion with studying the feasibility of backyard poultry production in

Loglog, Burnay, Lagawe, Ifugao, the researcher concluded that it is feasible to
raise broilers gaining much with less expense such as buying land for its
purpose. In addition, it is also a way in practicing one’s business capacity and to
enhance its skills and capabilities on business related matters. While living on
learning based strategy, it’s a way on increasing the production of chicken meats
beating the demand in production.

Lack of supply in the market presents that supply of chicken is low and
therefore production is highly needed to supply most especially the barangay it
was raised then leaking to other nearby municipalities.

The researcher recommends to the poultry raiser to select the right

breed for production that can withstand cold when cold season starts and that
goes to summer times. And could also be a dual-purpose for egg production so
well with the meat. To be able to make as such, the raiser must consider the
invest of quality feeds for the chickens and to maintain the source of fresh and
clean water having an adequate light and providing a regular check up on any
damage and protecting it from any predators.

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