A Feasibility Study on the Establishment of a Semi-Commercial Hogs Farm in Alfonso, Cavite The E & J Farms Farms ! CHA"TE# $ $%T#'(CT$% )! $n the "hili**ines, *or+ is one of the basic foods hich Fili*inos eat! $t is one of the best sources of *rotein needed by the body to be strong and healthy! That is hy a need for a farm arises! $ntroduction ! Hog raising business has been a very *o*ular and de*endable business in the "hili**ines! "hili**ines! $n fact, Hog raising business had dominated the sine industry as a healthy and viable commercial sector!Even in our traditional Fili*ino Festival.ccasion, Fili*inos alays crave for cuisine ith /"#01! /'i +om*leto ang +asyon +ung alang handang baboy1! 2! This statement had mar+ed our traditional ay of celebrating s*ecial occasions in our lives, and it *roved our undying taste for *or+! The "hili**ine 'e*artment 'e*artment of Agriculture3s vision is to moderni4ed smallholder agriculture and 5sheries to a diversi5ed rural economy hich ould be dynamic, technologically technologically advanced and internationally internationally com*etitive! 6! As of July 778, it as recoded at )2!69 of the labor force, roughly around : million *eo*le, are em*loyed in the agriculture industry, hich includes the hunting and forestry sectors! The situation being such, the agriculture sector aims for security, sustainability of the natural resource base, social e;uity and global com*etitiveness! ision The E & J Farms Farms envisions envisions itself as a hog raising raising farm *romoting *romoting and maintaining maintaining environmental environmental friendly identity to its em*loyees, customers and to to the community! E & J Farms also envisions itself to be a naturally inde*endent source of ?io@as hich can be used as a substitute for "@ to be used in the farm! The E & J Farms Farms also envisions for the eB*ansion eB*ansion of hog o*eration! o*eration! The E & J3s >ision.issio >ision.ission n Statement
D! ission The E & J Farms ill create an environmentally friendly identity through underta+ing the *ro*er and ecient ay of aste dis*osals to avoid harming and distorting others! The E & J Farms ill introduce its environmental friendly ?io@as facility through using the hogs3 aste, by converting these aste into useful mathaine gas! :7! The E & J Farms ill undergo eB*ansion after 5ve years through constructing additional building and adding *arent stoc+s for the *ur*ose of increasing their *roductiion to su**ly larger amount in the demand su**ly ga* ::! CHA"TE# $$$ "#JECT ?AC0@#(%' :! %ame of the "ro*osed ?usiness E & J Farms %ature of the business Hogs "roduction Ty*e of business organi4ation Sole "ro*rietorshi* ocation of the *roGect 0aysuyo, Alfonso, Cavite "roGect ?ac+ground :)! Source of Ca*ital Funding of E & J Farms3 general o*eration and other 5nancial demands ill be sourced from the savings of the *ro*rietor! r! Jandel A! @imeno ill invest " ,677,777 in the business! :! "ro*osed %ame of the ?usiness /E & J Farms1 ill be the name of the business as agreed u*on by the *ro*onents! The *ro*onents ado*ted the letters E and J from the name of the *ro*rietor3s *arents, Efren and Jovita @imeno! :2! The *roGect ill ado*t a sole *ro*rietorshi* ty*e of business organi4ation! Sole *ro*rietorshi* ty*e of business organi4ation is one hich is oned and run by an individual and here there is no legal distinction beteen the oner and the business! Ty*e of ?usiness rgani4ation
:6! All assets of the business are oned by the *ro*rietor and all the debts of the business are *ro*rietor3s debts and he.she must *ay it from his.her *ersonal resources hich ill result to unlimited liability! :#@A%$AT$% A%' A%A@EE%T FEAS$?$$TK ! Lith regard to the business o*erations, the *ro*osed business ill have a total of four MN *ersons including the @eneral anager, Technical *erations anager and to MN Farmhands! Each of them must have +noledge about the *roduction *rocesses of hogs! They ill be trained and oriented *ro*erly and ill be given some seminars regarding hog farming! Administration and anagement Feasibility )! anagement "ro*osals The @eneral anager ill be the one to *lan and ill be in charge of the overall su*ervision of the farm! He ill be the one to screen the a**licants to be recruited and hired!
The Technical *erations anager ill oversee the eciency and eOectiveness of the farmhands! He ill also be res*onsible for the general care of the *igs, maintaining the herd health and environment of the *igs! ! rgani4ational Chart 2! $n an organi4ation, *olicies and *rinci*les *lay an im*ortant role because these hel* organi4ation to become more ecient and eOective! These ill guide the hole business and hel* to achieve the com*any3s goals! Com*any "olicies 6! The *ro*rietor ill be the general manager of the 5rm! His com*ensation ill be through ithdraals from the business! 79 of the %et income ill be dran from the farm! "olicies on 'raings
All em*loyees are entitled to one M:N rest day! The Farmhand : ill ta+e his rest day on Saturday and the Farmhand ill ta+e his rest day on Sunday! The Technical *erations anager ill ta+e his rest day every Friday! ):! "hilHealth, "A@-$?$@, SSS and :)th month *ay ill be *rovided for all em*loyees! Seminars. Trainings Seminars and trainings ill be conducted for the farmhands to gain additional +noledge that ill enhance their abilities and s+ills to become more *roductive and more ecient! Em*loyee ?ene5ts )! CHA"TE# >A#0ET$%@ FEAS$?$$TK ))! This cha*ter ill discuss all the mar+eting as*ects of a Hog Farm! The discussion ill include the general mar+et descri*tion, the target mar+ets, the general mar+eting *ractices, demand, su**ly, the demand su**ly analysis, the *ro*ose mar+eting *rogram and the mar+eting strategy! The data and other 5gures ere gathered through research using both *rimary and secondary data! A#0ET$%@ FEAS$?$$TK )! The *rimary data came from the results of the conducted survey by the *ro*onents and the secondary data ere gathered from several government agencies and oces such as "rovincial >eterinary ce M">N, 'e*artment of Environment and %atural #esources M'E%#N, ?ureau of Agricultural Staistics M?ASN, 'e*artment f Agriculture M'AN, and Alfonso unici*al ce! )2! The use of mar+eting strategies and *romotional activities such as ord-ofmouth advertising, referrals and transit advertisement are highly sucient to increase the number of customers and to increase the level of revenue! )6! Alfonso, Cavite is an u*land ton situated at Southest *ortion of the *rovince! $t is one of the highly recommended *lace for the establishment of Hog Farms as a**roved by the "rovincial >eterinary ce! According to Alfonso oning a*, the said ton *rovides *referable locations for the *ossibility of o*ening business o*erations in line ith agriculture! A#0ET 'ESC#$"T$% )eterinary ce, there ere about 7 commercial farms and <7 bac+yard farms o*erating in areas of Alfonso, $ndang, ende4, Tagaytay, and Silang, Cavite as of 77D "rovincial >eterinary ce ocial count! $n Alfonso, there are about ) commercial farms and 7 bac+yard farms!
)8! The *ro*osed business ill be established at 0aysuyo, Alfonso, Cavite! The target mar+et ill be the *ublic mar+ets of Alfonso, Tagaytay City, ende4, $ndang and Silang, Cavite! The selected 5ve tons of Cavite has a total of :)7 meat vendors o*erating in their res*ective *ublic mar+ets! TA#@ET A#0ET )D! Table :! Frea;uency of Selling o*eration in Silang, Tagaytay City, $ndang, Alfonso and ende4, Cavite 7! Table ! Puantity of meats sold *er selling o*eration :! Table )! Source of "or+ Su**lies of >endors ! Table ! Availability of meat su**lies )! Table 2! >endorQs illingness to buy ! @E%E#A A#0ET$%@ "#ACT$CES The E & J Farm ill see+ accreditation from Cavite ivestoc+ "oultry Farming Association $ncor*orated MCA$F"A$N, 'e*artment of Environment and %atural #esources M'E%#N and "rovincial >eterenary ce M">N! The farm ill follo all the rules and regulations and ill com*ly ith the standards set by these organi4ations and agencies to ensure the *ro*er o*erations of the farm! 2! The farm ill also get u*dates and revies and other useful information for better hog farm o*eration! As to o*eration security, the E & J Farms ill secure its necessary re;uirements such as the Certi5cate of %on-Coverage MC%CN. Environmental Com*liance Certi5cate, icenses and business *ermits! 6! The farm ill also actively *artici*ate on some diOerent livelihood *rograms such as Hog #aising Seminars, Civic Lelfare "rograms and other Community 'evelo*ment related activities to gain mar+et aareness! ?y these *ractices, the farm is eB*ecting to establish a good *ublic relations ith diOerent haulers and meat vendor to hom the farm ill transact ith!
2:! 'EA%' S(""K A%AKS$S 2! CA"AC$TK T SE 2)! The farm ill be advertised through ord-of-mouth *romotion, referrals and transit advertising! $t ill also Goin CA$F"A$ MCavite ivestoc+ Farming "oultry Association $ncor*oratedN to meet re*resentatives of various sectors including 'e*artment of Agriculture! "ro*osed ar+eting "rogram 2! The local government ocials of Alfonso ill also be a great hel* since the *ro*osed business ill contribute for the betterment of the community! E & J ill also engage itself in organi4ing seminars.or+sho* for other hog raisers and for those ho as*ire to *ut u* their on hog farms! This ill also serve as a *romotion of the farm! 22! @roing "eriod and Feed Consum*tion Average 'aily @ain- This #efers to the average gain in eight of *igs in +ilograms *er day! Leaners should have an A'@ of at least !)27 +g! And fatteners should have an A'@ of !877-!82 +g! The higher the A'@ the better because it means faster groth of *ig and loer fattening *eriod! C"ET$T$>E A'>A%TA@E 26! Feed Conversion #atio- This refers to the amount of feeds consumed by the *ig *er +ilogram gain in eight! The loer the FC# the better! $t means lesser feeds *er gain! Leaners should have an FC# of :!2 and fatteners should have an FC# of )!7! 2
67! These grou* of meat vendors iil sell the meats to household ho are considered as the consumers.end-users of meats for 5nal consum*tion *ur*oses! 6:! CHA"TE# >$"#'(CT$%.TECH%$CA FEAS$?$$TK 6! The *ro*osed business E & J Farms falls under a *roduction ty*e of business *roviding the resellers ;uality *igs for their reselling *ur*oses, *articularly those meat vendors and even haulers in diOerent mar+et in Cavite, es*ecially in Alfonso and near-by tons! E & J ill establish 27 so level hogs farm, *roducing :77 heads of hog a month! "#'(CTS 6)! A variety of andrace strains originated from famous 'anish andrace hogs hich ere develo*ed in 'enmar+ in :8D2! The andrace is characteri4ed by its long body length, short legs, and medium to large droo*ing ears! andrace sine is meaty on the food es*ecially on the rail! Their hams are *lum* but trim! Their sides are long and uniform in de*th! ?#EE'E# STC0S 6! andrace sos are *roli5c and are +non to be eBcellent mothers and having a good litter si4e! This breed3s sos have been +non for their mil+ *roducing abilities, reaching their to* mil+ after 5ve ee+s of lactation hich is much latter hen com*ared to other breeds! 62! arge Lhite is a hite-colored meat ty*e of *ig ith medium, erect ears, curved bac+ and body in dining forard! The face is slightly dished! $t is fast groing, a good feed converter, highly *roli5c and eBcellent mil+ers ith su*erior mothering ability! $ts carcass is also suited for bacon *roduction! $t can ada*t ell in con5nement but not in rugged condition! 66! ?reed the sos! Farroing Leaning of *iglets "iglets in the %ursery Transfer to fattening section Hogs at mar+et eight "#'(CT$% "#CESS 6
Transfer of "urchased *iglets to the nursery *en! Transfer to the Fattening Section! Hogs at mar+et eight! ATE#%AT$>E "#CESS M:N 68! ?reed the sos! Farroing! Leaning of *iglets! "iglets in the nursery! "iglets at mar+et eight! ATE#%AT$>E "#CESS MN 6D! "#JECT S$TE <7! The 5rst factor that must be considered is the availability of resources or location here the *roGect ill be situated! ther considerations also include= the location cost and other legal re;uisites and also for all of this to be *ossible, a nonresidencial area must be chosen as the location of the business for it to o*erate! <:! "#JECT S$TE 'ESC#$"T$%The *ro*osed *roGect, E & J Farms ill be located at 0aysuyo, Alfonso, Cavite! <! ?uilding The E&J Farms ill construct three maGor buildings hich ould be essential for the o*eration of the farm, the 'ry *en building, Farroing *en and nursery *en building and the Fattener *en building! ?($'$%@ A%' FAC$$T$ES <)! 'ry "en ?uilding Farroing and %ursery "en ?uilding Fattener "en ?uilding Holding "en Storage #oom Arti5cial $nsemenation aboratory Farm House
<! E & J Farms has a biogas facility that treats *ig astes and generate enough methaine gas that is used for coo+ing at the farm house! This facility has made the commercial farm environmentally friendly as it minimi4es *ig odors from farm astes! Also, after biogas *rocessing of eRuent astes, asteater is discharged to irrigate the grass *addoc+s ithin the farm *remises! ?$@AS FAC$$T$ES <2! The farm ill create no aste but *ieces of *lastic *ac+aging of medicines for hogs, that ill be *laced *ro*erly on a trash bin! The *ig aste ill undergo the biogas facility that treats *ig aste and generate enough methaine gas that is used for coo+ing at the farm house! LASTE A%' LASTE '$S"SA <6! This facility has made the commercial farm environmentally friendly as it minimi4es *ig odors from farm astes! Also, after biogas *rocessing of eRuent astes, asteater is discharge to irrigate the grass *addoc+s ithin the farm *remises! <$$F$%A%C$A FEAS$?$$TK 87! CA"$TA #EP($#EE%TS CASH " :2,:<8!27 "#"E#TK A%' EP($"E%T Farming Tools And E;ui*ment 'elivery E;ui*ment ce E;ui*ment
<7,777!77
:8,77!77
Furniture And FiBtures $%>E%T#$ES
27,787!77
:8,<7!77
Farm Su**lies
",7:,:)6!27
ce Su**lies 82!77 and 27,777!77 "re-*erating EB*ense
:<,77,77
TTA CA"$TA #EP($E%TS
",677,777!77
8:! Selling *rice is com*uted using statistical *arabolic *roGection method! Sales are :779 of the yearly *roduction! @as and oil eB*ense, *romotion and advertisement, re*air and maintenance are assumed to increase by 29 annually! Contingencies are )9 of net sales! 'raing is 79 of net income! THE# F$%A%C$A ASS("T$%S 8! ther bene5ts li+e seminars and trainings are assumed to increase by 29 annually! Audit fees, *ermits and licenses are assumed to increase by 29 annually! The initial ca*ital re;uirement is good for ) months consum*tion! "roduction ill be maintained at :77 heads *er month for the neBt 2 years! 8)! "re-*erating Cash Flo Cash $nIo Ca*ital Contribution
",677,777!77
Cash utIo Farm Tools And E;ui*ment 27,787!77 'elivery E;ui*ment ce E;ui*ment
<7,777!77
:8,77!77
Furniture And FiBtures
:8,<7!77
Farm Su**lies
,7:,:)6!27
ce Su**lies
82!77
and 27,777!77 ?uilding And Facilities :,,777!77 "re-*erating EB*ense %et Cash Flo
:<,77!77
:2,:<8!27
8! The E&J FA#S "re *erating Statement f Financial "osition ASSETS C(##E%T ASSETS Cash And Cash E;uivalent
:2,:<8!27
$nventories ,7:,6:!27 %% C(##E%T ASSETS "#"E#TK A%' EP($"E%T
)2<,777!77
?($'$%@ A%' FAC$$T$ES :,,777!77 A%' 27,777!77 THE# ASSETS "re *erating EB*ense TTA ASSETS
:<,77!77
",677,77!77
$A?$$T$ES A%' L%E# EP($TK L%E#3S EP($TK
",677,777!77
TTA $A?$$T$ES A%' L%E#3S EP($TK
",677,777!77
D$$$SC$ EC%$C FEAS$?$$TK D8! This cha*ter ill discuss the diOerent sectors that ould bene5t from the *ro*osed business! The *ur*ose of *utting u* a business is not Gust to generate *ro5t but to give im*ortance to social and economic bene5t that it can *rovide! SC$A 'ES$#A?$$TK DD! The *ro*osed business ill be located at 0aysuyo, Alfonso, Cavite! <9 of its residents are engaged in agriculture, ta+ing advantage of its good location hich best suits the *ro*osed business! The said business ill increase rate of
em*loyment through *roviding Gob o**ortunities to those *eo*le ho ere unable to attain higher education! :77! $n *utting u* a business, registration of business is necessary to have *ermits and license from the government oce! These, along ith taBes are then *aid as the business o*erates! TaBes form *art of the government revenues that hel* to su**ort the needs of the *ublic! $%C#EASE $% @>E#%E%T #E>E%(E :7:! The *ro*osed business ill em*loy *eo*le ho have +noledge about agriculture *referably those ho are living ithin the adGacent area of the location of the *ro*osed business! These em*loyees ill receive fair com*ensation according to their ;uali5cations and *erformance! Salaries are based on the minimum age set by the government! @E%E#AT$% F E"KE%T :7! $ncrease in *o*ulation ill result in increase in demand for food, hich also means an increase in demand for *or+ in the area! Lith the continuous o*eration of the business, the em*loyees ill be hel*ed to u*lift the standard of their living! 'E>E"E%T F #EATE' ST('K :7)! $n order for the business to o*erate legally, it must com*ly ith the government re;uirements as follos ayor3s "ermit, ?usiness "ermit, Certi5cate of %on-Coverage and other unici*al icenses! Environmental Com*liance Certi5cate #egistration ith the SSS, "hilhealth and "A@-$?$@! #egistration ith ?ureau of $nternal #evenue! E@A AS"ECTS :7! $t ill satisfy the customers3 need! $t ill ensure the customers the of the Farm3s *roduct! THE# ?E%EF$TS :72! CHA"TE# $ C%C(S$% :76! After studying the diOerent as*ects in establishing a Semi-commercial Hogs Farm, *ro*onets concluded that the study is feasible and viable! The study shos
the initial investment of the *ro*osed business ill be ",677,777 ith a minimum *aybac+ *eriod of !2 years! :7
