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INTRODUCTION

The domestic goat (Capra hircus) is a subspecies of goat domesticated from the wild of
southwest Asia and Easter Europe and originates from three wild types of goats: Capra aegagrus, Capra
falconeri and Capra prisca Adametz .

Goats are one of the oldest domesticated species. Goats have been used for their milk, meat,
hair, and skins over much of the world.

The potential of goat farming has never been viable. In this regard, goat farming is a profitable
business and can ensure and generate a significant working posts and income for poor rural population.
It is a thriving business in the Philippines despite the arising problems that are urgently needed to be
addressed.

The proposed feasibility is for establishment of Milk-Kita Dairy Goat Farm with increase per goat
milk production through state of the art farm management facilities, efficient and effective utilization of
dairy production and deployment of technologically advance infrastructure. The project requires a
unique mix of technology and herd composition that will make it possible for investor to achieve
economies of scales and attain high rate of return on investment.

Significance of the study

 To have in-depth understanding about goat farming management


 To raise awareness regarding dairy farms
 Help the locals to earn money

Objectives of the Study

This aims at both financial and socio economic viability with in-depth financial analysis and
sustainable socio economic benefits to establish small scale Dairy Goat. The objective of this feasibility is
to provide a real time analysis of the market opportunity with factual data that will lead towards overall
improvement in dairy sector of economy.

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Farm Scheme

With goats per building, the farm will be producing dairy products continuously. Milk-Kita Dairy
Farm uses conventional type of building but it has a future plan of expanding the farm.

A. Marketing Aspect

Apart from establishing proper distribution and marketing channels, attention will be given to
availability of specialty types, branding, attractiveness of packaging, and relative price of products.

B. Technical Aspect

The proposed project is located at an accessible area. The place is spacious and surrounded by
trees which are appropriate to relieve the goats from stress and diseases. The business will be engaged
in processing milk products. Kids will also be sold for extra income.

C. Organizational Aspect

The project is owned by a corporation. The owners will be the managers and bookkeepers.
There will be 6 owners, 1 manager, 1 supervisor, 8 field workers, 2 staff drivers and 2 security guards
that will help in the operation of the business.

D. Financial Aspect

The source of financing will be contributed by the six owners of the farm. The financial aspect of
the business requires high cost to put up the project but a gain can also be expected.

E. Socio-economic Aspect

The project aims to be beneficial to the residents of Tarlac because it will hire staffs who are
residents of the local area. Through taxes and permits needed in the operation of the business, the
government will also generate additional income.

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BACKGROUND INFORMATION

Name of the Business

As agreed upon by the proponents, the name of the proposed business will be Milk-Kita Dairy
Farm.

Location

Milk-Kita Dairy Farm

Brgy. Laoang, Tarlac

Figure 1. Map Location

Figure 2. Location of the Farm

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The location of the business will be at Brgy. Laoang, Tarlac City. It is a 4-hectare land. It is far
from neighboring houses to avoid disturbance and has an easy access of transportation, electricity and
water.

Vision

Our vision is to become one of the leading dairy farming brands in Tarlac City.

Mission

Our mission is to sell our produced high-quality goat milk in commercial quantities both locally
and regionally.

Objectives

Milk-Kita Dairy Farm aims to:

 To upgrade the status of dairy industry at state and national level


 To provide consumers with high quality dairy products at a reasonable price
 To uplift the socio-economic conditions of milk producers
 To expand the operation of the business in the neighboring towns and provinces after 5 years

Strengths

 Vast unused land resources


 Price of goat milk and its products
 Preserved nature of grazing areas suitable for goat farming
 Dietetic and therapeutic properties of goat meat, milk, and milk products

Weaknesses

 Lack of and high cost of quality stocks


 Low market orientation of goat farmers
 Absence of modern productive technologies
 Unawareness of opportunities
 Weak technical support of agricultural extension works

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Opportunities

 Increasing demand of value added dairy products


 Local and global dairy products needs are much higher than supply

 Commercially viable sector with great credit potential and absorption capacity

 Dairy sector provides raw material for food & leather industry

Threats
 High risks of diseases in live stock

 Defective and unorganized markets

 Imbalance between prices of inputs & outputs


 Lack of awareness about economics, demand & supply in market

 Low saving, low holding capacity

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A. MARKETING ASPECT

A.1. Product Offerings

Milk-Kita Dairy Farm is a licensed dairy goat farming business that is committed to dairy
processing and packaging. We will also ensure that we operate a standard milk processing plant as part
of our complimentary business offering. We offer processed and packaged milk. Our business is also
engaged in selling buck kids and culled does. Another source of income is from manure.

Nature of the Product

Goat’s Milk

 is naturally homogenized unlike cow’s milk, due to its smooth texture, which makes it easy to
absorb in the body and digest.
 contains less lactose than cow milk.
 contains more vitamins A and B than cow milk although both types of milk have the same levels
of vitamins C, D, Iron, Protein and Fat.
 is a very good source of calcium and other minerals and trace minerals
 is known for its medicinal properties

Appearance and Flavor

In terms of its color, texture and taste, goat milk is similar to cow milk. However, goat milk can taste
somewhat saltier and sweeter than cow milk. In addition, other factors may impact the flavor of goat
milk, such as certain feed eaten by dairy goats. Goat milk products, such as goat milk cheese and yogurt,
may have stronger flavor than equivalent cow milk products.

Therapeutic properties of goat milk

Goat milk is healthy food with high advantage of being easily digested because of softer curds
and smaller and thus more absorbable, fat particles. For these reasons, goat milk is extremely favorable
for sensitive and slow digestive systems. It has great medicinal and therapeutic characteristics and has
been known to aid/cure skin problems, assist respiratory and digestive processes in infants and promote
all around good nutrition in humans. It is recommended to be used in cases of pulmonary diseases,

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various allergies, improving immunity, renewal of bone structure and enhancing activity of the digestive
tract.

A.2 Target Market

Milk will be sold on farm gate to following target clients:

 Local people
 Grocery Stores
 Restaurants
 Cheese Plants

A.3 Pricing Strategy

We are ensuring that we choose a good location for our commercial dairy farm, choose a good
breed that will guarantee good milk production, cut the cost of running our farm to the barest minimum
and of course try as much as possible to attract buyers to our dairy farm as against taking your livestock
or even your produce to the market to source for buyers; with this, we would have successfully
eliminate the cost of transporting the goods to the market and other logistics.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads
of customers for processed goat milk is to sell them at competitive prices hence we will do all we can to
ensure that the prices of our processed milk are going to be what other commercial goat dairy farmers
would look towards beating.

Product Price
Processed and Packaged Milk (250 ml) Php 40
Processed and Packaged Milk (750 ml) Php 105
Processed Milk (1L) Php 125
Buck Kid Php 5,000
Doe Kid Php 6,000
Culled Does Php 6,000
Culled Buck Php 5,000
Manure Php 20/Sack
Table 1. Products and their Corresponding Prices

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A.4 Distribution Strategy

We are quite aware that the reason why some commercial dairy farms hardly make good profits
is their inability to sell off their goods to a larger market. In view of that, we decided to set up a standard
milk producing plant to help us maximize profits.

Over and above, we have perfected our sale and marketing strategies first by networking with
agriculture merchants and companies that rely on raw materials from the livestock farming industry
who are likely to refer become our customers.

In summary, Milk-Kita Dairy Farm will adopt the following strategies in marketing our commercial
dairy farm products;

 Deliver on Cheese Plants every 3 months


 Deliver on Grocery Stores and Restaurants twice a month
 Engage in direct marketing

A.5 Promotional Strategy

We know that it is important to create strategies that will help us boost our brand awareness and to
create a corporate identity for our commercial dairy farming business. Below are the platforms we want
to leverage on to boost our commercial dairy farm brand and to promote and advertise our business;

 Leverage on the internet and social media platforms like; Instagram, Facebook , twitter,
YouTube, Google + et al to promote our business
 Install our tarpaulins on strategic locations
 Distribute our fliers in target areas
 Contact corporate organizations and residence in our target areas by calling them up and
informing them about Milk-Kita Dairy Farm and the milk we sell
 Advertise our commercial livestock farms in our official website and employ strategies that will
help us pull traffic to the site.

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B. TECHNICAL ASPECT

B.1 Name of the Product

Milk-Kita Dairy Farm produces processed goat milk.


B.2 Biosecurity

Preventing the introduction and spread of infectious diseases

1. Keeping a closed herd

Keeping a closed herd is one way to protect goats from infectious disease.

2. Purchasing new goats

Three factors are important in reducing the risk of infectious diseases when purchasing new
goats - the protection we will give to the herd by proper provision of dewormer, the source of
purchased goats including how they are transported to the farm and the method we will use to actually
introduce the new goat to the rest of the herd.

3. Resident goats

We will assure that resident goats are dewormed.

4. The source of purchased goats

We will:

 Bring in only animals from herds where we know the health status.
 Avoid purchasing animals from unknown sources or that have been mixed with other goats
 Transport animals in a vehicle that has been cleaned and disinfected before pick up.

5. Introducing new arrivals

Milk-Kita Dairy Farm will:

• Quarantine new animals for 30 days before allowing contact with animals on-farm.
• Designate our quarantine area. Quarantined goats should not share feeders, waterers or equipment
with resident goats.

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• Use a medicated foot bath before allowing purchased goats to enter the herd.
• Prevent the spread of contagious mastitis by milking the new animals last. Sanitize the milking
equipment after milking new goats.

6. Controlling farm traffic Infectious diseases can be carried by people and equipment too.

Our operation will:

• Limit people's access to the barn. This may mean locking the door to the barn.
• Post a warning sign asking visitors to keep out. It helps to provide information on who to contact or
a telephone number to call instead of entering the barn.
• Make sure visitors use a foot bath and clean their boots with a brush and disinfectant before
entering your barn.
• Have dead animals picked up without allowing the livestock renderer to enter your barn or come in
contact with your animals.
• Keep a record of visitors.

B.3 Milking Procedure

Lactation starts right after delivery. Length of lactation is a breed’s property but usually lasts
from 240 days to 300 days

Lactating does are milked twice daily. The does stand on elevated platforms so the workers do
not have to stoop. In this study the milking parlor has 5 vacuum pumps.

Milk Collection process begins with lining up the goats and giving them feeds so the
concentration will be on eating. Before milking the does, the teats will be dipped in an Iodine solution
for at least 30 seconds. A laborer will hand-milk the goat about two squirts from each teat. This is being
done to check for abnormalities and eliminate any milk close to the surface of the teat that is more likely
to be contaminated with dirt. Dry each teat thoroughly with an individual cloth, removing all the teat dip
to prevent any residue and avoid transfer of bacteria.

The teat cups of the machine will be placed on the goat’s udder and the machine will be turned
on. Before removing the unit, the vacuum should be off. Dip teats immediately after unit removal with a
product that has been shown to be effective at preventing new cases of mastitis.

B.4 Sanitation and Disinfection

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B.4.1 Milking parlor hygiene

The milking parlor is a high density place so should be disinfected twice daily. Surfaces will be
cleaned regularly to avoid multiplication of pathogens in this frequented area. As the milking machine is
cleaned every day, it will be the same for the milking parlor itself. After each milking, milking parlor will
be rinsed with water. It will be cleaned using detergent and will be disinfected once a week.

B.4.2 Milking machine hygiene

The milking machine will be cleaned after each milking.

B.4.3 Animal hygiene

Using an adapted disinfectant is essential for the control of the diseases and consequently for
farm profitability.

B.4.4 Teat hygiene

During milking goats 'share' the milking machine and it is a source of contamination from one
doe to another doe or one quarter to another quarter. Pre-milking preparation can be realised in a
different manner: reusable cloths, soaked in a bucket of detergent solution is the traditional method.
The teats will also be dipped on Iodine.

B.4.5 Feed and feeding equipment control

We will consider contaminated feeds (forages, pasture, grains and concentrates, water and waste
milk), feeding equipment and systems when developing an on-farm biosecurity plan. The section on
managing vehicles and farm traffic provides some basic information. The biosecurity of feeding should
include plans to:

• purchase from suppliers with quality assurance and monitoring programs


• protect feeds from contamination through proper storage of chemicals, pesticides and medications
• protect feed from manure contamination
• establish storage facilities for feeds for various classes of livestock and systems to avoid errors in
feeding practices
• harvest feeds at proper moisture contents and ensile them in suitable storage systems
• monitor water quality and assure clean delivery systems

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B.4.6 Management of Groups and Housing

Housing and management systems are constructed to minimize contact between young and
older animals. In effect, the young are given time to develop immunity to diseases before joining the
adults. The facilities also permit implementation of feeding and management practices to assure
maximum growth, health and comfort.

We will:

• implement maternity-pen and newborn-kid management practices that prevent kids from ingesting
manure.
• separate dry dairy does from milking does
• implement practices to prevent the spread of contagious mastitis
• provide adequate feed bunk length and water trough access per animal

B.5 Farm Layout

Figure 3. Farm Layout

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Legend:

1- Guard house 6- Building 1

2- Boarding Area 7- Building 2

3- Milking Area 8- Water tank

4- Office Room 9- Storage Room for Silage, feeds

5- Processing and Packaging Area 10- Disposal Area

Figure 4. Layout of Milking Area

Figure 5. Layout of Goat Building

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Figure 6. Fence

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OPERATIONAL PROCESS

A. Stocks

Anglo-Nubian Goats

The typical Nubian goat is large in size and carries more flesh than other dairy breeds. Anglo
Nubians can produce 2-3 liters of milk daily for up to 240 days.

Saanen goats

Saanens are the largest of the goat dairy breeds. They can produce 3-4 liters of milk daily for up
to 240-260 days.

Initial animal cost is given in table below:

Type Quantity Per Unit Cost Total Cost


Doe 100 Php 8,000 Php 800,000
Buck 10 Php 6,000 Php 60,000
Total 110 Php 860,000
Table 2. Initial Cost of Stocks

B. Feeding

Although the goat has a great capacity for consuming fibrous feed (roughage), it needs to be
given forage or good quality, such as napier, and corn silage.

Schedule:

7:30am– Fresh forage or grass


10:00am – Formulated Feeds
1:00pm– Formulated Feeds
3:00pm – Corn Silage

110 lbs x .03 = 3.3 DM

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1 pound of forage is 10% DM + 1 pound of silage is 30% DM
3.3 pounds DM/ 0.4 = 8.25 pounds forage and silage as-fed/goat per day

Goat numbers to use for a 100-goat milking herd

Feed Intake of Goat Intake of Total Intake/day Total


milking herd/day Replacement Intake/Year
Animals/ day
Green Fodder 110 goats x 8.25 lbs = 148 kids x 2.5 lbs = 907.5 + 370 = 1277.5 1277.5 lbs x
And Silage 907.5 lbs or 370 lbs lbs 365= 466,287.5
lbs or
211,504.4 kg
Grains (100 does x 2.5 lbs) + 148 kids x 1 lb= 260 lbs + 148= 76,300 lbs +
(10 bucks x 1 lb) = 148 lbs 408 lbs 54,020
260 lbs lbs+3650 lbs=
133,970 lbs or
60,767.77 kg
Total 1167.5 lbs 518 lbs 1,685.5 600,257.5 lbs
or 272,272 kg
Table 3. Total Feed Intake of Goats

Milking Does: Milking does consume an average of two and a half pounds of grain a day annually.

2.5 lbs as-fed grain/day x 305 days = 763 lbs


100 does x 763 lbs per year = 76,300 lbs

Feed Cost

Feed Total Unit cost Quantity Total Cost


Intake/Year
Green Fodder 466,287.5 lbs Corn Seeds – 6 Php 13,800
And Silage or 211,504.4 kg 2,300/18-kg

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sack
Grains 133,970 lbs or Php 1,100/50 1215 sacks Php 1,336,500
60,767.77 kg kg
Total 600,257.5 lbs Php 1,350,300
or 272,272 kg
Table 4. Total Cost of Feed

C. Water

Goats should have ready access to clean, fresh water at all times. A mature goat will consume
between 5-8 liters of water per day.

D. Housing and Flooring

Goats in Milk-Kita Dairy Farm are raised in a close confinement and housing. The housing will be
elevated for cleaning purposes. The building will be 5 feet high.

Figure 6. Flooring Figure 7. Elevation of the Building

E. Ventilation

Milk-Kita Dairy Farm will exhibit cold housing type. This means natural ventilation system will be
used.

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Figure 8. Goat Pens

Figure 9. Ceiling

F. Light

In order to provide enough natural light and proper ventilation, windows will constitute a large
portion of the buildings. During nights, there will be 5 fluorescent lamps per building.

Lighting Unit Cost Quantity Total Cost


Fluorescent Lamp Php 295 20 Php 5,900
Light bulb Php 93 10 Php 930
Total Cost of Lighting Php 6,830
Table 5. Total Cost of Lighting

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G. Health Care and Veterinary Management

Dairy goats routinely receive preventative treatments for certain health conditions. Does are
treated for more health issues than bucks. All goats have a footbath to help prevent foot rot and hooves
are trimmed and injuries treated. Kids are wormed. Milking does on pasture are wormed 3 times a year.

Health Care Supplies Unit Cost Quantity Total Cost


Dewormer (Albendazole) Php 2,780/500 ml 2,000 ml Php 11,120
Hoof Trimmer Php 695 10 Php 6,950
Laboratory Tests ----- ----
Total Cost of Health Care Supplies Php 18,070
Table 6. Total Cost of Health Care Supplies

F. Land, Delivery Vehicle and Building

Land

3 hectares of land will be provided by one of the owners.

Transportation requirements

Vehicle Qty Rate Total Cost


L300 2 Php 350,000 Php 700,000
Total Cost of Vehicle Php 700,000
Table 7. Total Cost of Vehicles

Building

There are a total of 9 buildings.

Building Qty Rate Total Cost


Building for goats 2 Php 1,000,000 Php 2,000,000
Milking Area 1 Php 800,000 Php 800,000

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Feed Storage 1 Php 1,000,000 Php 1,000,000
Processing and 1 Php 500,000 Php 500,000
Packaging Area
Office Room 1 Php 200,000 Php 200,000
Boarding Area 1 Php 300,000 Php 300,000
Disposal Area 1 Php 150,000 Php 150,000
Guard House 1 Php 50,000 Php 50,000
Total Cost of Building Php 5,000,000
Table 8. Total Cost of Buildings

G. Equipment, Supplies, Furniture and Fixtures

Portable Milking Machine with Two Buckets and Two Milking Units

Furniture & equipment as well as supplies required for the project are given in tables below.

OPERATIONAL EQUIPMENT
Operational Equipment Qty Rate Total Cost
Milking Machine 5 Php 50,000 Php 250,000
Chaff Cutter 1 Php 100,526 Php 100,526
Milking Pails 10 Php 100 Php 1,000
Waterer 40 Php 24 Php 960
Bottling System 1 Php 50, 589 Php 50,589
Glass Door Refrigerator 2 Php 15, 995 Php 31,990
Floating Dairy 4 Php 628 Php 2,512
Thermometer
Teat Dip Cup 50 Php 50 Php 2,500
Generator 2 Php 18,000 Php 36,000
Water Tank 1 Php 40,000 Php 40,000
Wheel Barrow 2 Php 1,000 Php 2,000

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Scythe 4 Php 50 Php 200
Total Cost of Farm Equipment Php 518,277
OFFICE EQUIPMENT
Office Equipment Qty Rate Total Cost
Desktop Computer 1 Php 15,000 Php 15,000
Printer 1 Php 5,000 Php 5,000
Air conditioner 1 Php 20,000 Php 20,000
Total Cost of Office Equipment Php 40,000
Total Cost of Equipment Php 558,277
Table 9. Total Cost of Equipment

Figure 10. Portable Milking Machine Figure 11. Waterer

Figure 12. Chaff Cutter Figure 13. Waterer

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Office Supplies Qty Rate Total Cost
Record Books 10 Php 70 Php 700
Pens 10 Php 5 Php 50
Papers Php Php 1,000
Printer Ink 5 Php 250 Php 1,250
Total Cost of Office Supplies Php 3,000
Cleaning Supplies Qty Rate Total Cost
Broom Stick 5 Php 20 Php 100
Dust Pan 5 Php 60 Php 300
Trash Can 5 Php 50 Php 150
Disinfectant Php 500
Sack 50 Php 8 Php 400
Cloth Php 500
Total Cost of Cleaning Supplies Php 1,950
Operational Supplies Qty Rate Total Cost
Cooking Pots 6 Php 250 Php 1,500
Basin 6 Php 40 Php 240
Kitchen Stove 2 Php 700 Php 1,400
LPG 5 Php 300 Php 1,500
Bottles 188,790 Php 227,000
Silo 15 Php 550 Php 8,250
Total Cost of Operating Supplies Php 239,890
Total Cost of Supplies Php 244,840
Table 9. Total Cost of Supplies

Furniture Qty Rate Total Cost


Chairs 10 Php 300 Php 3,000
Tables 5 Php 1,000 Php 5,000
Cabinet 5 Php 2,000 Php 10,000
Total Cost of Furniture Php 18,000
Table 10. Total Cost of Furniture

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Figure 13. Silo

H. Labor Requirements

Milk-Kita Dairy Farn will have 14 employees in the operation and management of the business.
Human Resource required for the project is as follows.

Description Qty Salary/Month/Person Annual Total Annual


Salary/Person Salary
Farm Manager 1 Php 18,000 Php 240,000 Php 216,000
Supervisor 1 Php 15,000 Php 180,000 Php 180,000
Guard 2 Php 8,000 Php 96,000 Php 192,000
Farm Laborers 8 Php 10,000 Php 120,000 Php 960,000
Driver 2 Php 7,000 Php 84,000 Php 168,000
Total Salary Cost: Php 1,716,000
Table 11. Total Salary Cost

I. Utilities

Utilities Monthly Usage Rate Monthly Cost Annual Cost


Water 300 cubic meter Php 22.00/ cubic Php 6,600 Php 79,200

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meter
Electricity 1,200 kilowatt Php 10.50/ Php 12,600 Php 151,200
kilowatt
Chemicals (Iodine) 3,000 ml Php 178.00/100 Php 5,340 Php 64, 080
ml
Food resources Php 27,000 Php 324,000
Transportation Php 3,000 Php 36,000
Connection, Cable
TV, Phone Plan Php 3,000 Php 36,000
Connection
Total Utility Cost: Php 690,480
Table 12. Total Utility Cost

J. Waste Disposal

INSECT CONTROL

 We will clean out manure once a week so that the flies won’t lay eggs in it and bother the goats
 Fleece worms: we will clean the infected area so none will come.

MORTALITY

 We are going to use incineration to get rid of the goats bodies that died unexpectedly
 We don’t want any of the diseases to spread into the water supply or given to one of our goats.

WASTE AND SOIL TESTING

 We will test our soil and waste right before we put our waste onto our soil (every 6 months).
 We will test our soil and waste near our field but far away from the animals

WASTE APPLICATION RATES

 Half of the manure will be sold and the half in the barn will be use as fertilizer in our field

K. Fiscal and Legal Regulations

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In order to start its operation, it needs several permits such as DTI, BIR and Mayor’s permits.
These permits are renewable annually.

Permits and Licenses Cost


Annual Registration (BIR) Php 500
Department of Trade and Industry Php 300
Mayor’s Permit Php 1,500
Environmental Compliance Php 500
Certificate (DENR)
Business Clearance to Operate Php 30
Cedula Php 20
Fire Clearance Php 500
Sanitary Permit Php 125
Registration (Vehicle) Php 3000
TOTAL Php 6,475
Table 12. Total Cost of Permits and Licenses

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C. ORGANIZATIONAL ASPECT

Form of Organization

Milk-Kita Dairy Farm is a partnership because 6 people share the ownership of the business.

Organizational Chart

Owners

Farm
Manager

Supervisor

Field
Guards Drivers
Workers

Figure 14. Organizational Chart

Below is the business structure:

 General Farm Manager


 Supervisor
 Field Workers
 Guards
 Drivers

Duties and Responsibilities

General Farm Manager

 Responsible for planning, managing and coordinating all farm activities across various sections
 Ensure compliance during project executions

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 Ensures the farming goals desired results are achieved, the efficient resources are utilized and
different interests involved are satisfied.
 Oversee the smooth running of daily farming activities
 Responsible for developing and managing financial systems and policies

Supervisor

 Responsible for managing the commercial breeding and milking of goats


 Responsible for services offered

Field Workers

 Responsible for feeding goats, cleaning the barn


 Assist in handling the breeding and milking of goats
 Handle farm implements and machines

Security Guards

 Responsible for the safety of the farm.


 Guide the visitor before entering the farm.

Drivers

 Responsible for the milk.


 The one who will drives for the farm employees whenever there are farm transactions.
 Also, will be responsible in maintaining the cleanliness and soundness of the vehicle.

Qualification and Benefits

Position Qualifications Benefits


General Farm Manager  At least 23 y/o, Male or  Weekend Day offs
Female  Incentives
 Graduate and board exam  SSS, PhilHealth, Pag-Ibig

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passer of any course related  Insurance
to Animal Husbandry or
Business
 Knowledgeable and skilled
 Should have a proven ability
in the farm management
field
 Should have the necessary
planning and organizational
skills to achieve targets
Supervisor  At least 21 y/o, Male or  SSS, PhilHealth, Pag-Ibig
Female  Insurance
 College Graduate of any  Incentives
course related to Animal  Free lodging
Husbandry or Business  Free food
 Knowledgeable and skilled
especially on marketing
aspects
Field Workers  At least 18 y/o, Male  SSS, PhilHealth, Pag-Ibig
 At least High School  Insurance
Graduate  Incentives
 Physically and mentally fit  Free lodging
 Should be practically skilled  Free food
and knowledgeable as well
in handling farm practices
 Should be willing to work
flexibly
Guards  At least 21 y/o, Male  SSS, PhilHealth, Pag-Ibig
 At least high school  Insurance
graduate  Incentives
 Physically and mentally fit  Free lodging

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 No misdemeanor  Free food
convictions for theft,
assault, criminal mischief or
criminal threatening
Driver  At least 18 y/o, Male  SSS, PhilHealth, Pag-Ibig
 At least high school  Insurance
graduate  Incentives
 Physically and mentally fit  Free lodging
 With at least 1 year driving  Free food
experience
Table 15. Qualification and Benefits of Workers

A. Basic Financial Assumptions

1. Selling price of milk and goat by-products will increase annually by 3%


2. The total project cost is 9,638,829.5 pesos only.
3. Each member of the corporation will be contributing 1,607,000 pesos.
4. The source of financing will be contributed by the 6 members of the corporation.
5. Cost of operation will increase 3% per year.
6. Mortality rate and culling rate varies yearly.
7. Maintenance of the building is 8% of the annual gross income. Excess maintenance will be
returned to the owner.

B. Projected Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5 Total

Gross Php
14,206,260.00 17,745,844.00 20,987,487.00 29,940,864.00 42,128,916.00
income 125,009,371.00

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Cost of Php
10,256,562 4,486,582 5,519,595 9,624,067 10,179,044
Operation 40,065,850

Net Php
2,388,009.4 12,371,969.8 13,159,268.43 17,023,301.96 27,315,691.24
income 72,258,241

ROI 24.75% 128.31% 136.48% 176.55% 283.29% 149.876%

Table 16. Projected Income Statement

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D. Financial Aspect

Capital Requirement

Starting Capital: Php 9,642,000

 1,607,000 – from Dr. Nimfa Bacsa


 1,607,000 – from Dr. Carylle Deanne Dela Cruz
 1,607,000 – from Dr. Aerone Vinz Facun
 1,607,000 – from Dr. Jireh Lapuz
 1,607,000 – from Dr. Shella Mae Layug
 1,607,000 – from Dr. Shekinah Phebe Samson

PROJECT COST
Initial cost of the project has been estimated as follows.

PROJECT COST
DESCRIPTION TOTAL COST
Initial Capital Cost
Land ---------
Building/Infrastructure Php 5,000,000
Animals Php 860,000
Machinery and Equipment Php 518,277
Furniture Php 18,000
Office Vehicles Php 700,000
Supplies Php 244,840
Fiscal and Legal Regulations Php 6,475
Total Capital Costs Php 7,347,592
Initial Working Capital
Salaries (3 months) Php 429,000
Utilities (3 months) Php 181,320
Fodder Inventory Php 1,676,400
Health Care Cost (3 months) Php 4,517.5

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Total Working Capital Php 2,291,237.5
Total Project Cost Php 9,638,829.5
Table 17. Initial Project Cost

FARM FIGURES

Year 1 Year 2 Year 3 Year 4 Year 5


Does 100 122 145 205 291
Bucks 10 15 20 33 50
Kids 156 170 246 349 494
Productive 92 112 133 189 267
does
Cull does 15 18 22 31 44
Cull buck 2 3 4 7 10
Mortality 8 7 10 17 15
Total Number 148 163 236 332 479
of Kids
Replacement 7 8 17 23 38
bucks
Replacement 37 41 83 116 192
does
Sold Male 67 73 101 143 201
Sold Female 37 41 35 50 48
Table 18. Farm Figures for 5 years

MILK PRODUCTION

Milk in Milk in Milk In Milk Used Milk for


Liters/day liters/month liters/year by Kids Sale
5%
Year 1 368 11,040 99,360 4,968 94392
Year 2 448 13,440 120,960 6,048 114,912

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Year 3 532 15,957 143,617 7,181 136,437
Year 4 756 22,679 204,109 10,205 193,904
Year 5 1070 32,096 288,865 14,443 274,422
Table 19. Milk Production for 5 Years

FEEDING

Green Silage and Green Fodder

Year Herd Kids Intake (Herd) Intake Total Total


(Kids) Intake/Day Intake/Year
Year 1 110 148 907.5 370 1277.5 466,287.5
Year 2 137 163 1130.25 407.5 1537.75 561,278.75
Year 3 165 236 1361.25 590 1951.25 712,206.25
Year 4 238 332 1963.5 830 2793.5 1,019,627.5
Year 5 341 479 2813.25 1197.5 4010.75 1,463,923.75
Table 20. Feed Intake (Green Silage and Green Fodder)
Grains

Herd Total
Year Does Bucks Kids Intake Kid Intake Intake/day Total/year
1 100 10 148 260 325 585 133970
2 122 15 163 320 400 720 158056
3 145 20 236 382.5 478.125 860.625 204075
4 205 33 332 545.5 681.875 1227.375 289640
5 291 50 479 777.5 971.875 1749.375 415118
Table 21. Feed Intake (Grains)

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Operating Expenses for 5 years
Year Year 1 Year 2 Year 3 Year 4 Year 5
Building 4,000,000 ---- ---- 2,000,000 ----
Goat Cost 860,000 ---- ---- ---- ----
Feed Cost 1,350,690 1,591,045 2,050,269 2,904,125 4,156,272
Health Care 18,070 15,290 22,240 34,750 45,870
Utilities 728,280 812,832 1,032,864 1,441,752 1,859,568
Labor 1,764,000 1,764,000 1,980,000 2,196,000 2,916,000
Operating 519,277 3,350 74,979 164,861 146,796
Equipment
Office 40,000 ---- ---- 20,000 ----
Equipment
Operational 239,890 283,180.2 339,527.6 482,389.3 676,148
Supplies
Office Supplies 3,000 3,000 3,000 3,000 3,000
Cleaning 2,050 2,410 4,340 5,250 7,950
Supplies
Lighting 6,830 ---- ---- 6365 465
Fixtures and 18,000 5,000 5,900 7,600 7,500
Furniture
Permits and 6,475 6,475 6,475 7,975 9,475
Licenses
Transportation 700,000 ---- ---- 350,000 350,000
Total Cost 10,256,562 4,486,582 5,519,595 9,624,067 10,179,044
Table 22. Operating Expenses

Production Output

Year 1 Year 2 Year 3 Year 4 Year 5


250 ml 151,028 bottles 183,860 bottles 218,300 bottles 310,248 bottles 439,076 bottles
750 ml 37, 758 bottles 45,965 bottles 53,855 bottles 77,561 bottles 109,769 bottles

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1L 28,318 liters 34,474 liters 40,391 liters 58,171 liters 82,327 liters
Kids Sold (M) 67 73 101 143 201
Kids Sold (F) 37 41 35 50 48
Culled Does 15 18 22 31 31
Culled Bucks 2 3 4 7 7
Manure 200 sacks 250 sacks 320 380 400
Table 23. Production Output

Income

Year 1 Year 2 Year 3 Year 4 Year 5


250 ml 6,041,120 7,354,400 8,732,000 12,409,920 17,563,040
750 ml 3,964,590 4,826,325 5,654,775 8,143,905 11,525,745
1L 3,539,750 4,309,250 5,116,375 7,271,375 10,290,875
Kids Sold (M) 335,000 365,000 505,000 715,000 1,005,000
Kids Sold (F) 222,000 246,000 210,000 300,000 288,000
Culled Does 90,000 108,000 132,000 186,000 186,200
Culled Bucks 10,000 15,000 20,000 35,000 35,000
Manure 4,000 5,000 6,400 7,600 8,000
Income 14,206,260 17,228,975 20,376,550 29,068,800 40,901,860
3% increase 14,206,260 17,745,844 20,987,487 29,940,864 42,128,916
Table 24. Operating Income

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Year 1 Year 2 Year 3 Year 4 Year 5

Gross
14,206,260.00 17,745,844.00 20,987,487.00 29,940,864.00 42,128,916.00
income

Cost of
10,256,562 4,486,582 5,519,595 9,624,067 10,179,044
Operation

Maintenance
1,136,500.8 1,419,667.52 1,678,998.96 2,395,269.12 3,370,313.28
8%

Tax 3% 426,187.8 532,375.32 629,624.61 898,225.92 1,263,867.48

Net income 2,388,009.4 12,371,969.8 13,159,268.43 17,023,301.96 27,315,691.24

ROI 24.75% 128.31% 136.48% 176.55% 283.29%

Table 24. Income Statement

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E. SOCIO-ECONOMIC ASPECT

A. Tax Contribution

The government will benefit on the taxes, permits and licenses that will be paid by the proposed
business. The taxes, permits and licenses that will be paid by the proposed business will be used to
support the projects for the development of the country.

B. Contribution to Income and Employment

One of main goal of the proposed business is to have a high income especially in the part of the
owner. The proposed business will generate a pleasant relationship between the owner and the
employees to attain the goal of the business which is to have an income. This will be a great opportunity
for those unemployed people to have jobs and to have another source of income.

C. Contribution to the Nation’s Food Security and Safety

The proposed business will provide high quality goat milk for human consumption, certified in
accordance with the strictest quality and food safety standards, which will ensure the food safety and
security of the nation.

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