The Feasibility Study

Business Definition:

Microenterprise Development- Seed Capital Fund – Hog Production (MD-SCF) is mainly to aid the start-up of the
farmers under Regular Conditional Cash Transfer (RCCT) who are into raising hog. Hog production is one of the main
livelihood in the rural areas which help them augment their daily needs. This will also provide seed capital as well as
knowledge in proper handling and caring of hogs to those beneficiaries who will be awarded with this project.

Project Definition:

 Hog raising in the Philippines has been profitable business for Filipinos especially those in the rural areas.
 Plays a major role in ensuring the country’s food security by providing 60% of the total animal meat consumption.
 Hog is the second leading contributor to Philippine agriculture
 Can be sold alive at a livestock market or processed into pork for home use
 Most of the Filipinos in the rural areas raise hog to augment the living.

Importance of Feasibility Study

 A feasibility study is conducted to help determine the validity of a project. The study also shows the potential
return on investment and any risks to the success of the project. When it becomes certain the specific project
could be carried out profitably, it is only the time that it could be implemented.

Components of Feasibility Study

Factors in Production or Technical Study:

 Pig pen Preparation
 It is one of the most important part in hog raising. Hogs need to be secured in a dry place and provide
enough space to move around. Pig pens floor must be cemented in order to get rid of parasites or any
diseases.
 20-50 square feet of space can be occupied for a full grown pig.
 Feeding
 Choosing the right foods for hogs is very important part in raising livestock. Usually feeds are in different
according to the weeks of the hogs such as pre-starter, starter, grower and finisher.
 Feeding hogs in morning and afternoon given the right amount to maintain a healthy stock. A pig should
gain 0.45 kilogram per day.
 Most typically corn-based feeds are used because they are high in digestible carbohydrates, low in fiber
and cost effective.
 A single finishing hog from 50-250 pounds requires 600 pounds of feed. A single sow will eat about 2,500
to 3,000 pounds of feed per year. Nursery pigs don’t eat very much feed from weaning to 50 pounds.
 Choosing of hogs
 Buy piglets who had been weaned from their mother for atleast 1 to 2 weeks. The best way of buying
and choosing of hogs to be taken cared is to come from one source from same breed.
 Look for a High quality and healthy piglets and avoid piglets being peddled.
 When Raising:
 In Grow Finishing, pigs are fed as much as they wish until they reach the desired market weight from
250 to 275 pounds.
 Marketing usually occurs when it reaches 3 to 4 months depending on the breed and disease problem as
well as the desired market weight
 Enough ventilation for fresh air to feel comfortable
 Consider the time of the year when buying piglets. Pigs grow in size best in summer.
 There must be good shelter, bedding and water
  Hog Raising and Production
 Breeding:
o In Breeding- Mating between to pigs of the same breed. Pure breeding is a special kind of in-
breeding. The effect would be the concentration of common genes in the offspring.
o Pure Breeding – Mating the same breed. This is to identify and propagate superior genes for use
in commercial production. This type of breeding is commonly and well known used.
o Out-Breeding- Mating of the same breed but who are less closely related than the average of
the breed. There should not be a common ancestor for four generation.
o Cross Breeding- Mating of different breeds thus introducing into the progeny a gene
combination that is different from that existing in either parent or in the breed of either parent.
 Farrowing- is a term used in hog production referring to the action of giving birth. Farrowing
management begins months before piglets are born. Sometimes delivery timing is slower and
sometimes two pigs will arrive at the same time.
 Weaning- Removing the piglets from the sow can occur anytime after 14 days of age some wean pigs
prior to 21 days of age. Many others wean pigs after 28 days of age and can be successfully weaned up
to six weeks of age.

2. Marketing Plan or Market Study

FEEDS FEED TRADERS

PRODUC SUPPLIER
TION BUTCHERS
CONSUMERS
HOG RAISERS HOTEL AND
RESTAURANTS

PUBLIC MARKETS
PIG
PIGLETS
PRODUCERS

BREEDING FARROWING WEANING

4 P’s of Market Study:

1. Product/Project
 Hog, the product chosen by the beneficiaries is one of the most profitable business, consumable to all
and is suitable in Aglipay, Quirino.
 Microenterprise Development- Seed Capital Fund (MD-SCF) – Hog Production is to give the
beneficiaries a start-up for their hog production by financing their needs (hog and feeds).

a. What is the product/ project is all about?

 The project is for hog production, to equip the participants with new knowledge and skills necessary
for enterprise, operation and management.
 To provide supplies and materials necessary for the operations of the microenterprise (physical
and / or natural capital)
 To facilitate access to financial services through the establishment of a Community-managed credit
and savings facility.

b. Who are going to Buy/Benefit?

 As stated in the diagram, the buyers would be those who manage hotels, restaurant owners, butchers,
public markets, traders aside from are individual consumers who will buy for their own daily consumption.

a. TRADERS who have the capacity to store and sell it to bigger markets. They tend to have a network in
buying pigs at different areas.

b. PUBLIC MARKETS It is where most of the hog growers sell their products. They rely on a qualified agent
to market their hogs at a terminal market or use an auction where buyers compete directly with each
other to buy hogs. Public markets price hogs is only on a live weight basis.

c. BUTCHERS – Central Public stockyard or terminal markets handle 2% of the nation’s slaughter hogs. They
are typically consigned to a commission firm at that market.

d. HOTELS AND RESTAURANTS- They can never serve a dish with a pork. One of the biggest buyers comes
from hotels and restaurants who are also serving their clients a satisfaction.

c. How will they buy/benefit?

HOTEL AND
RESTAURANT
PUBLIC
MARKETS

HOG RAISERS CONSUMERS

RCCT Beneficiaries

TRADERS/ DSWD RCCT

BANK/COOPERATIVE
BUTCHERS REGULATORS

LEGEND:
Creates orders and demands Guides and monitors the project of
from the farmers. the RCCT beneficiaries

Delivers then collects Farmers deposit some of their

payment for deliveries earning in the bank for savings.

e. When do they buy?

 Hog reaches it’s desired market weight or 3 to 4 months of raising them. Generally speaking,
exhibitors have possession of project animals for 90 to 120 days prior to the market hog.

2. Price (as stated by Philippine Statistic Office as of July- September 2021)

 The average farmgate price of hogs upgraded for slaughter in backyard farms for July to September 2021 was
quoted at Php 151.85 per kilogram, liveweight. It increased by 38.9 percent compared with the previous year’s same
period average farmgate price of Php 109.35 per kilogram, liveweight.

During the reference period, the highest farmgate price was recorded in July at Php 160.03 per kilogram,
liveweight, while the lowest was in September at Php 142.76 per kilogram, liveweight.

Single Product

a. SHORT TERM COST FOR BRGY. ALICIA

MATERIALS AMOUNT SUBTOTAL

2 Piglets Php5,450.00 Php10,900.00
1 bag feed (pre-starter) Php 1,350.00 Php 1,350.00
2 bags feed (starter) Php 1,685.00 Php 3,370.00
4 bags feed (grower) Php 1,585.00 Php 6,340.00
2 bags feed (finisher) Php 1,520.00 Php 3,040.00
TOTAL Php 25,000.00

b. SUM OF ALL EXPENSES

SHORT TERM COST

2 PIGLETS Php 5,450.00 Php 10,900.00
1 PRE-STARTER Php 1,350.00 Php 1,350.00
2 STARTER Php 1,685.00 Php 3,370.00
4 GROWER Php 1,585.00 Php 6,340.00
2 FINISHER Php 1,520.00 Php 3,040.00

TOTAL : Php 25,000.00

c. ACTUAL PRODUCTION COST
Find the actual production cost of the product by dividing the total expenses over the volume of finished products.

P 25,000.00 / 2 pcs. P 12,500.00 (ACTUAL PRODUCTION COST)

d. Multiply the actual production cost with the desired MARK UP rate by the class.

P 12,500 x 20% P 2,500.00 MARK UP COST

E . Add the actual production cost with the mark up cost to get hold of the selling price of your product.

P 12,500 + P 2,500 = P 15,000.00 SELLING PRICE

3. Management Study.

The one involved in the implementation of the project are the beneficiaries and its household. In raising hogs it is
not necessary to involve much of your time. One member of the household can feed the hogs in the morning, others
would clean the pigpens and so in the afternoon. This kind of project also does not require much skills but only
knowledge in proper handling of hogs from

4. Financial Planning

For Project of Hog Raising Production at Brgy Alicia , Aglipay, Quirino

Sources of Funds
Materials Unit Cost Sources of Funds Fundraising Loans Donation Total
2 piglets 5,450.00 Partner agency Php10,900.00
1 bags pre-starter feeds 1350 Partner agency Php 1,350.00
2 bags starter feeds 1685 Partner agency Php 3,370.00
4 bags grower feeds 1585 Partner agency Php 6,340.00
2 bags finisher feeds 1520 Partner agency Php 3,040.00
Php 25,000.00

Income Statement -

Shows if there is an income or loss in the operation for a particular period of time.

Procedures:

1. Find the gross sales. Multiply the volume of products sold to the selling price.
 2 hogs x 90 kilos x 320 per kilo
TOTAL: Php 57,600.00

2. List down all the operation expenses and lump them under Expenses. Then add all the expenses.
 2 Piglets Php 10,900.00
1 Pre-starter feeds Php 1,350.00
2 Starter Feeds Php 3,370.00
4 grower feeds Php 6,340.00
2 Finisher feeds Php 3,040.00
TOTAL Php 25,000.00
3. Subtract the expenses to gross sales. The results will either (gross) income or loss.
 Php 57,600.00 - Php 25,000.00
TOTAL = Php 32,600.00

How to determine Return of Investment:

ROI - represents the recovery of the investment incurred in the project.

Formula:

ROI = ___Net Income___ x 100

Total Production Cost

= P 32,600.00
P 25,000.00

= P 1.304 x 100

= 130.4 %

Importance of knowing the ROI.

Understanding the ROI is important to know how much is returned to your investment. Having an income is not a
guarantee that it is a good investment. Right profit has to conform with industry standard. If the value of peso rises the
value of your ROI may become insignificant as it may not sustain the funds requirement of the project due to high prices
of commodities.