1

CHAPTER I: SUMMARY OF THE PROJECT

A. Introduction

Cateel is a community of health conscious people where they are very particular with

the type of food they eat and prepare for their family. They want high quality foods

like meat as one of the sources of their home-made dishes that they prepare for their

loved ones. It is also the highlight of their special occasions such as birthdays,

anniversaries, weddings, and Christmas celebrations with their mouth –watering

dishes like lechon, calderetta, menudo and many more.

Cateeleños are also known for having several eateries and food catering services

serving their valued customers with their scrumptious dishes at affordable prices.

They serve different recipes mostly meat recipes for their students, vendors, drivers,

travelers, and by-passers customers and for other special occasions from Monday to

Saturday.

Eateries and food catering services are usually found in the Poblacion of the

community and some are found in the beach resorts in different barangays of Cateel

that caters numerous customers especially during holiday season.

With this, the researchers have agreed to put up a “livestock and poultry production”

in order to supply the Cateeleños with adequate and high quality livestock and

poultry products needed for their consumption, and other food businesses at

affordable prices.

Livestock and poultry sectors are highly dynamic it evolves to rapidly increasing

demand for livestock and poultry products. It is a popular and lucrative business due
 2

to the increasing demand from the emerging business and increasing population. It

continues to play a major economic and cultural role in numerous communities.

B. Name of the Business

The proposed business is named “ Manang’s Farm House” as agreed upon by the

researchers. “Manang” is a term usually common for Cateeleños referring to females

that emphasize closeness towards each other when the term is used to address a

female individual since Cateeleños are known for being close especially to their

family and other people to attract the interest and trust of the customers. The

proposed business is primarily focused on the production of livestock and poultry

products. It is specialized on breading of pigs, goats, and chicken.

C. Location of the Firm

The proposed business, “Manang’s Farm House” would be located in Sitio

Balinawnaw, Barangay Aragon, Cateel, Davao Oriental. It is a spacious area

surrounded by trees and it is far from neighboring houses to avoid disturbance. The

livestock and poultry site is consists of two (2) hectares of agricultural land perfectly

suited for the production site. It is accessible to water supply from the Aragon dam

that is only 20 meters away from the production site. The electric post of DORECO

(Davao Oriental Electric Cooperative) where the electricity from the site will come

from is only 10 meters away. In terms of accessibility, transportation is easy for it only

takes 3-5 minutes to reach the national high way from the site, considering that the

road from the site to the national high way is fully cemented and all types of vehicles

can enter. The image below shows the geographic location of the business.
 3

Geographical location of the production site (Barangay Aragon, Cateel, Davao

Oriental)

D. Vision, Mission, and Objectives

Vision

As a livestock and poultry production business, Manang’s Farm House

envisions itself to be the leading supplier of high quality livestock and poultry

products in Cateel, Davao Oriental. To promote sufficient and affordable supply of

livestock and poultry products for the customers. Advocating and maintaining friendly

identity to its employees, customers and the community.

Mission

The Manang’s Farmhouse is committed to promote good and high quality

sufficient supply of livestock and poultry products to the people of Cateel, Davao

Oriental.
 4

The proposed business will expand after five years through constructing

additional building and adding parent stocks for the purpose of increasing their

production to supply a larger amount in the demand supply gap.

Objectives

The objective of the proposed business is to promote convenient distribution

of livestock and poultry products for customers’ consumption, retailers and other food

business establishments so that they can satisfactorily acquire their needs.

Indicatively, the project wants to attain the following:

a. to expand the operation of the business in the neighboring towns after 5 years;

b. to increase the profit by 5% annually;

c. to provide high quality products; and

d. to be the leading supplier of livestock and poultry products in Cateel, Davao

Oriental and other neighboring towns.

 5

CHAPTER 2: MARKET FEASIBILITY

This chapter discusses all the marketing aspects of a Livestock and Poultry

production. The discussion includes the demand and supply analysis, the pricing

study and the proposed marketing program. The data and other figures were

gathered through research using both primary and secondary data.

The primary data came from the results of the conducted survey by the researchers

and the secondary data were gathered from several government agencies and

offices such as Department of Environment and Natural Resources (DENR),

Department of Agriculture (DA), and Cateel Municipal Office.

A. Demand

According to Cateel- Registrar Office the Cateel’s target population as of 2019 is

42,525 where 85.80% of the population is Roman Catholics that are known to

acquire or eat mostly all kinds of livestock and poultry products. While, 3.25% of the

population are Seventh Day Adventists (SDAs) and 0.34% are Islam that are

commonly known for not acquiring or eating livestock and poultry products especially

pork due to religious beliefs.

Cateel consists of 16 Barangays and 70% of it has meat stalls or market stands, that

sell about an average of 15 kilos of meat products per day. Based from our

interview, the Public Market in Cateel, vendors sells 100-150 kilos of pork and 80-100

kilos of chicken a day. And for goat they seldom sell them due to insufficient supply.

They used to sell them seasonally like, Christmas seasons or fiestas of every
 6

Barangays of the town since the community has no such business as livestock and

poultry production that sufficiently and conveniently supply the residents of Cateel.

With this kind of number, there is a big demand of livestock and poultry products. It is

very significant to determine the demand of livestock and poultry products to

determine what the market needs.

120% 5%
100% 18% 14%
80%
60%
40% 82% 86%
20% 95%
0%

NO
YES

Figur

e1. Demand of Livestock and Poultry products

Figure 1.shows the demand of livestock and poultry products. Based on the survey

82% of the respondents acquire or eat livestock products and 18% do not and its

major factor is religious beliefs. Also, 86% of the respondents agreed to have a

livestock and poultry production in the town (Cateel) and 14% do not agree and its

major factor is the backyard production. And 95% of the respondents said that they

will acquire livestock and poultry products from our business. This indicates that

there is a high demand of livestock and poultry products in Cateel, Davao Oriental.
 7

Projected Demand for livestock and poultry products

In sixteen (16) Barangays of Cateel (in kilograms)

Year 2020 2021 2022 2023 2024

Livestock 70,220 71,640 72,930 74,110 75,570

products

(Pigs and

Goat)
Poultry 36,620 36,740 37,500 38,100 39, 860

products

(Chicken)

Table1. Projected Demand for Livestock and poultry products

Table1 shows the projected demand of livestock and poultry products in 2020 up to

2024. The projected demand for livestock products in the year 2020 is 70,220

kilograms. In the year 2021, 71,640 kilograms, 2022, 72, 930 kilograms, 2023,

74110 kilograms, and 2024, 75,570 kilograms. The projected demand for poultry

products in The year 2020 is, 36, 620 kilograms, 2021, 36740, 2022, 37500, 2023,

38,100 and in the year 2024, 39860.

B. Supply
In terms of supply, there are few businesses that offer livestock and poultry products

in Cateel, Davao Oriental and in some parts of the town and the neighboring towns in

the region. In poultry products, the major supplier is Magnolia Corporation from

Davao City some are from the backyard raising. While, livestock products are from
 8

commercial production and backyard production. The graph below shows the

suppliers of livestock and poultry products.

Supplier of Poultry Products

16.67% Different Commercial Poultry
Self-production
83.33%

Figure2. Supplier of poultry products

Figure 2 shows the existing supplier of Poultry products in Cateel. In which, 75% are

from the different commercial poultry from the different regions of Davao. While 15%

are from self-production from the residents of Cateel.

Supplier of Livestock Products

Different Commercial Farm
30.00% Backyard Production
70.00%

Figure3.Supplier of livestock products

Figure 3 shows the existing supplier of livestock products in Cateel. In which, 60% of

the suppliers are from the commercial livestock production from the different regions

of Davao and also, 40% are from the backyard production from the residents of

Cateel.
 9

C. Pricing Study

The pricing of livestock and poultry products are based on the market price in Cateel.

The regular seasons of livestock and poultry products are February, March, April,

May, June, August, September, October while the peak seasons are July, November,

December and January. The price is set to be affordable for the customers and

provide quality livestock and poultry products to help the Cateelenos in their

consumption and their business establishments. The products are listed below with

their respective market place per kilo.

Product Price per kilo Price per kilo

(Regular seasons) (Peak seasons)
Chicken(Broiler) Php100 Php110
Pig (white) Php150 Php180
Goat Php200 Php200
Table2. Prices of Products

D. Marketing Program

The marketing program to be used by the Manang’s Farm House Business are

through word of mouth, airing in the radio station of Frendz Radio, placement of

streamers and distribution of flyers together with the cellphone number of the

business attached in the flyers and streamers to conveniently contact the business

for orders and deliveries .The streamers will be placed at the municipal plaza of

Cateel, public market and in front of livestock and poultry farm two weeks before the

opening of the business. The flyers will be distributed to the business establishments

such as meat shops, barbeque stalls, roasted chicken food stall, eateries and

different catering services in Cateel as well as the by-passers customers two weeks

before the opening of the business. The airing in the Frend’z Radio station will also
 10

be done two weeks before the opening of the business and so on. Using Facebook

page the proposed business and its background information will be uploaded one

week before the opening of the business.

SWOT ANALYSIS

SWOT Analyze Strengths, Weaknesses, Opportunities, and Threats that are

associated with a situation by considering all the internal and external aspects of the

business and market.

Strengths Weaknesses
 Product  New in the industry
 Price
 Location
 Management
Opportunities Threats
 Increasing demand for quality  Established relationship of
Livestock and poultry
consumer to other competitors
products  Diseases such as; New Castle
 Planned local government
Disease (NCD) and Infectious
regulation for livestock and
Bursai Disease(IBD)
poultry products in Cateel.
Table4. SWOT Analysis

Strengths

The product has high quality products and is very common and often acquired and

used by the consumers as part of their basic needs and their business

establishments. Considering that the product has no efficient and convenient supply

from the town. The price is affordable compared to the existing suppliers and the

location is accessible for it is near the national high way and the road is fully
 11

cemented from the site. In relation to management, it ensures good operation and

communication of the employer, employees and the customers by implementing

ethical guidelines.

Weaknesses

The ways on how to handle unexpected outcomes of the business being new in the

industry is a challenge that the business needs to asses. Good and efficient plan

must be taken to deal with the future problems of the business.

Opportunities

The increasing demand of high quality livestock and poultry products due to the

increasing demand from the business establishments like, catering services and the

increasing population. The planned government regulation in Cateel, that will monitor

the quality and price of the product to be distinguished as business with good service

that could attract customers.

Threats

The established relationship of the existing competitors and the consumers is a

threat to the business and on how the business will gain the consumers’ trust and

interest. The business must possess good relationship with the customers and

maintain the good integrity of the business to capture the interest and trust of the

customers. Diseases that may infect the livestock and poultry products should be
 12

handled effectively to ensure the safety of the customers and the operation of the

business.

PORTER’S FIVE FORCES

The five forces of Porter is a tool used by the five industry forces to find out how

strong the competition and its profitability in an industry. These forces determine the

structure of the business in the industry and the level of competition.

SUPPLIER POWER

The raw materials can be acquired easily because of its availability in the area. The

young livestock and poultry products are can be also acquire from the neighboring

towns that can maintain the operation of the establishment in meeting the demand of

the community.

CUSTOMER POWER

The customer has the right to demand and to choose what kind of livestock and

poultry products they want to acquire. Customer can demand to the management to

bargain more indifferent weights and kinds of livestock and poultry products for their

choices in which product they will likely to buy. In this case the relationship between

producer and consumer will increase.

COMPETITIVE RIVALRY

In this generation, quality, affordability and accessibility of the products is essential to

the customers to attract their interest and to lessen the costs of their expenses. In
 13

this case, Manang’s Farm House meets the demand of the customers in terms of the

quality and affordability and accessibility of the products.

THREATS OF SUBSTITUTION

The customer will continually buy the products because of its availability to

meet their demand. Various kinds and weights of livestock and poultry products are

available that will serve as customer’s choice to buy a substitute product to meet

their demands.

THREAT OF NEW INDUSTRY

Business beginners are always expected to join in a market to introduced new

product to the customers. And the management needs to do is to maintain the good

relation to their valued customers and to improve the quality and accessibility of the

product.
 14

CHAPTER 3: TECHNICAL FEASIBILITY

This chapter focuses on the technical aspect of the proposed business. It composed

of the product, process, facilities and raw materials.

A. Product

Manang’s Farm House Business grows and produces livestock and poultry products.

The business focuses on selling high quality livestock and poultry products. The

major consumers of the product will be the beach resorts, restaurants, markets and

various food catering services, and high income households.

Product Description

Chicken( Broiler) A type of chicken that matures 45 days from

hatch and is ready for disposal.

Pigs (white) A white type of pig that matures from 2-3

months and is ready for disposal.

Goat (native) A native type of goat that matures from 5-8

months and is ready for disposal.

Table5. Description of Products

 15

OPERATIONAL PROCESS

Table3 shows the Operational process of livestock and poultry production. It includes

the purchase process, rearing and disposal.

PURCHASE REARING DISPOSAL

Price canvas of young Set up of shelters for hogs, Weighing of pigs, goats,
pigs, goats and chicks goats and chicks and chicken

Customer
Supplier Feeding and giving of
water 3 times a day.

Purchase Take
Purchase of young pigs, Order
goats and chicks Vaccination and giving customers’
vitamins Order

Packaging and
Payment and receipt of delivering of Bill of
young hogs, goats and customers Customer
chick. goods and issue

Collection
of payment

Issuance of
Receipt
Table6. Operational Process
 16

FEEDING SCHEDULE

Table4 shows the feeding schedule of chicken it includes age of chicks in days, type

of feeds, consumption, cost per sack, the total cost and the supplier.

Age of Type of Consumption Cost per Total Cost Supplier

chicks in Feeds sack
days
0-14 Chick 10sacks/ Php1400 Php14000 Omicron
Booster 150heads
15-28 Broiler 10sacks/150 Php1500 Php15000 Omicron
Starter heads
29-45 Broiler 10sacks/150 Php1300 Php13000 Omicron
Finisher heads
Table7.Feeding Schedule of Chicken

Table5 shows the feeding schedule of hogs it include the age of hogs in months, type

of feeds, consumption, cost per sack, the total cost and the supplier.

PIGS

Age of Type of Consumption Cost per Total cost Supplier

hogs in Feeds sack
months

1-2 Hog starter 10 Sacks/ 100 Php1600 Php15000 Omicron

heads
2-3 Hog Mash 10 sacks/ 100 Php1600 Php16000 Omicron
heads
3-4 Hog Pellet 10 sacks/ 100 Php1500 Php15000 Omicron
heads
Table8.Feeding Schedule of Hogs
 17

GOAT

Goat will be fed through grass and water. It will be placed in the area where it will not

be too much exposed under the heat of the sun or from the rain water in order to

prevent sickness and death.

B. DRINKING WATER
The chicks, hogs, and goats will be provided with numerous drinking bowls and

potable water coming from the water station since they easily get thirsty especially in

hot weather and to ensure its survival and to prevent them from diseases. They will

be place in bright and convenient place so they can easily be found and accessible

to approach. The source of water is from the water station in Cogon, Cateel, Davao

Oriental.

C. TEMPERATURE

This focuses on the appropriate temperature that the chicks, hogs, and goat must

obtain. Chicks’ temperature is 38.6 degree Celsius and become 40.5 degree Celsius

in 7 days. The temperature must be 31 degree Celsius -35 degree Celsius in the first

day and this is lowered by 3 degree Celsius at the end of the first week. After this,

temperature is maintained at 21 degree Celsius -24 degree Celsius.

Age of chick in days Brooding Temperature

0-7 31-35

8-15 27-31

15-27 21-24

28-45 Remove the supply of heat

Table9.Temperature of chicks
 18

PIGS AND GOAT

Hogs and goat will be maintained in room temperature 35 degree Celsius and not

exceeding in 37 degree Celsius to avoid diseases and heat stroke.

D. VACCINATION PROGRAM
The chicken, hogs and goat will undergo vaccination program in order to prevent

them from diseases.

The broiler chicken will be vaccinated in order to prevent them from diseases such as

New Castle Disease and Infectious Bursai Disease. The NCD vaccine is

administered on the 7th and 17th day of the chick. One drop of vaccine in the eyes or

one drop in the nostril is given. Care should be taken no to release the chick until it

has in haled the nasal drop and or blinked its eye. The IBD vaccine is mixed with

water on the 7th and 17th day of the chick.

CHICKEN

Vaccine Schedule Cost per Head

New Castle Php1.50

Vaccine 7 Days old
and 17 days old
Infectious Bursai Disease Php2.00
Vaccine

Table10.Chicken Vaccination Schedule

 19

PIGS

Vaccine Schedule Cost per Head

Belamyl 2 weeks after the pig is Php1.00

delivered

Beclomax For Deworming Php2.00

Table11. Hogs Vaccination Schedule

E. Waste disposal
In order to make to the proposed business environment friendly it needs proper

disposal of waste. In connection with this, the proposed business must have a

compost pit about 3 meters wide and 3 meters deep for the wastes of the Chicken.

For the waste of Hogs is 8 meters wide and 5 meters deep compost pit. And for the

waste of Goat is 4 meters wide and 5 meters deep. The compost pit will be the

dumping site for the wastes of livestock and poultry animals which shall be covered

to minimize the spreading of odor.

F. Distribution Strategy
The products will be distributed through delivery. The market days in Cateel is

Saturday and Sunday. Prior to the market days, there will be scheduled delivery

every Wednesday and Friday using the delivery vehicle (multicab) acquired by the

proponent. If the customer would like to order not on the scheduled time of delivery

or there are possible walk- in customers, the manager’s decision if there is an excess
 20

products as reserved for the following day provided that the customer will also be the

one who will pick up the product.

The cost of delivery is shown below:

Cost of gasoline per scheduled delivery Amount

Weekly Php375

Monthly Php1500

Table12.Cost of delivery
 21

FACILITIES

PIGPEN

EGG PILER

POULTRYPEN
 22

RAW MATERIALS

ROPE

PIG FEEDER
 23

CHICK FEEDER

DRINKING BOWL FOR PIG

DRINKING BOWL FOR GOAT

 24

CHAPTER IV: FINANCIAL FEASIBILITY

A. Project Cost

Property, Plant and Equipment Php 617, 820. 00

Pre- operating Cost Php 1, 082, 180.00

Total Php1, 700, 000.00

B. Sources of Financing

OWNER’S INVESTMENT

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

ABARCA 789,982.12 1,265,708.82 1,773,109.82 2,226,872.53 2,540,332.92

ALCONTIN 789,982.12 1,265,708.82 1,773,109.82 2,226,872.53 2,540,332.92

 25

CALAYCA 789,982.12 1,265,708.82 1,773,109.82 2,226,872.53 2,540,332.92

MONTERMOSO 789,982.12 1,265,708.82 1,773,109.82 2,226,872.53 2,540,332.92

TADIOQUE 789,982.12 1,265,708.82 1,773,109.82 2,226,872.53 2,540,332.92

Table13. Owner’s Investment

C. Projected Financial Statements

Financial Statement Description

Income Statement
Statement of Financial Position
Statement of Cash Flow
Table14. Description of Financial Statement
Formal Statement showing the financial
performance of an entity for a period of
time.
Formal statement showing the economic
resources, liquidity, solvency, financial
structure and capacity of an entity.
Formal Statement which provides
information about the cash receipts and
cash payments of an entity during a
period.

PURCHASES

PARTICULARS QUANTITY UNIT COST TOTAL COST

Chick 150 PHP 25.00 PHP 3,750.00
Pig 100 PHP 500.00 PHP 50,000.00
Goat 30 PHP 1,500.00 PHP 45,000.00
Chick booster 10 PHP 1,400.00 PHP 14,000.00
Broiler Starter 10 PHP 1,500.00 PHP 15,000.00
Broiler Finisher 10 PHP 1,300.00 PHP 13,000.00
Hog Starter 10 PHP 1,600.00 PHP 16,000.00
Hog Pellet 10 PHP 1,500.00 PHP 15,000.00
 26

Hog Mash 10 PHP 1,600.00 PHP 16,000.00

New castle disease
400 PHP 1.50
vaccine PHP 600.00
Infectious Bursai disease
400 PHP 2.00
vaccine PHP 800.00
Belamyl 200 PHP 2.00 PHP 400.00
Beclomax 200 PHP 2.00 PHP 400.00
TOTAL PHP 189,950.00
Table15. PURCHASES

SALARIES

MONTHLY ANNUALLY
Manager PHP 8,000.00 PHP 96,000.00
Cashier PHP 6,500.00 PHP 78,000.00
Maintenance PHP 5,500.00 PHP 66,000.00
Maintenance PHP 5,500.00 PHP 66,000.00
Maintenance PHP 5,500.00 PHP 66,000.00
Security Guard PHP 6,000.00 PHP 72,000.00
Security Guard PHP 6,000.00 PHP 72,000.00
Driver PHP 4,000.00 PHP 48,000.00
Utility PHP 5,000.00 PHP 60,000.00
TOTAL
PHP 624,000.00
Table16.Salaries Expense

*Salaries will increase in the year 2023 and 2024 by 2%

SSS and PHILHEATH

SSS PHILHEALTH
Monthly Annually Monthly Annually
Manager Php250.00 Php3000.00 Manager Php250.00 Php3000.00
Cashier Php200.00 Php2400.00 Cashier Php200.00 Php2400.00
Maintenance Php200.00 Php2400.00 Maintenance Php200.00 Php2400.00
Maintenance Php200.00 Php2400.00 Maintenance Php200.00 Php2400.00
Maintenance Php200.00 Php2400.00 Maintenance Php200.00 Php2400.00
Security Php200.00 Php2400.00 Security Php200.00 Php2400.00
Guard Guard
 27

Security Php200.00 Php2400.00 Security Php200.00 Php2400.00

Guard Guard
Driver Php200.00 Php2400.00 Driver Php200.00 Php2400.00
Utility Php200.00 Php2400.00 Utility Php200.00 Php2400.00
TOTAL Php22,200.00 Php22,200.00
Table17. SSS and PHIHEALTH
*SSS and Philhealth are based on the salaries of the employees

PERMIT AND LICENSES

Mayor’s Permit PHP1000

Business Clearance PHP1000

Garbage Fee PHP500
Sanitary Permit PHP500
Health PHP300
Fire Safety Fee PHP300
Police Clearance PHP100
Barangay Clearance PHP100
Environmental Compliance Certificate PHP500
TOTAL PHP5300
Table18. Permit and Licenses

UTILITIES EXPENSE

MONTHLY ANNUALLY

Electricity PHP 1,500.00

PHP 18,000.00

Water PHP 500.00

PHP 6,000.00

Transportation PHP 1,500.00

PHP 18,000.00

TOTAL
PHP 42,000.00
Table19. Utilities Expense
 28

*The total amount of utilities expense indicated above is due to unnecessary price
accelerations.

PROMOTIONAL EXPENSE

Monthly Annually
Radio PHP300 PHP3600
Streamers PHP200 PHP2000
Fliers PHP100 PHP1200
TOTAL PHP6800
Table20. Promotional Expense
*Promotional Expense will only took in the first up to the third year of operation.
OFFICE SUPPLIES

Particulars Quantity Price per unit Annual Cost

Record book 8 PHP60 PHP480
Ball pen 3 BOXES PHP150 PHP450
Calculator 3PCS PHP300 PHP1200
Official Receipt 40 BKLTS. PHP50 PHP2000
Bond paper 2 REAMS PHP250 PHP500
TOTAL PHP4630
Table21. Office Supplies
*The items of the store supplies indicated above are used for listing orders and other

important business information.

*The price of every item indicated above is based on their quality and quantity.
FURNITURE AND FIXTURES

Particulars Quantity Price per unit Total Cost Estimated

life(years)
Wooden Table 4 Php1000 Php4000 10
Plastic Chairs 12 Php200 Php2400 10
Ceiling Fan 4 Php750 Php3000 10
TOTAL Php9400 10
Table22. Furniture and Fixtures
 29

*The price of every item is based on their quality with its estimated useful life
capacity.
PROPERTY, PLANT AND EQUIPMENT

ESTIMATED
USEFUL
QUANTITY LIFE PRICE PER UNIT TOTAL COST
Weighing scale 2 (100 kls) 10 PHP 2,000.00 PHP 4,000.00
Wheel Barrow 2 10 PHP 1,500.00 PHP 3,000.00
Shovel 3 10 PHP 350.00 PHP 1,050.00
Delivery
1 PHP 200,000.00
Vehicle 10 PHP 200,000.00
Egg Piler 5 10 PHP 1,500.00 PHP 7,500.00
TOTAL PHP 215,550.00
Table23. Property, Plant and Equipment

*The price of every item indicated above is based on their quality and quantity.

*The price of every item is based on their quality with its estimated useful life
capacity.
MISCELLANEOUS EXPENSE

Annually

Miscellaneous Php7000

TOTAL Php7000

Table24. Miscellaneous Expense

*The amount indicated above is based on the estimated expense for miscellaneous.
 30

STORE SUPPLIES

PARTICULARS QUANTITY PRICE PER UNIT TOTAL COST

Trash Bins 8 PHP 100.00 PHP 800.00
Pail 8 PHP 50.00 PHP 400.00
Broom stick 4 PHP 20.00 PHP 80.00
Dustpan 4 PHP 30.00 PHP 120.00
Drinking troughs 50 PHP 50.00 PHP 2,500.00
Ropes 5 PHP 250.00 PHP 1,250.00
Feeders 60 PHP 100.00 PHP 6,000.00
TOTAL PHP 11,150.00
Table25. Store Expense
RENT EXPENSE

ANNUALLY
LAND PHP 100,000.00
TOTAL PHP 100,000.00
Table26. Rent Expense
*The total amount of rent expense indicated above is based on the area of land
rented.
BUILDING EXPENSE

PARTICULARS QUANTITY PRICE PER UNIT TOTAL COST

Cement 150 PHP 350.00 PHP 52,500.00
Hollow blocks 500 PHP 25.00 PHP 12,500.00
Wood(2x2,2x3,4x4) PHP 150,000.00
Galvanize Iron 50 PHP 200.00 PHP 10,000.00
Chain Fence 50 PHP 400.00 PHP 20,000.00
Steel Pipe 50 PHP 300.00 PHP 15,000.00
Plywood 15 PHP 350.00 PHP 5,250.00
Labor PHP 80,000.00
TOTAL PHP 345,250.00
Table27.Building Expense
*The total amount of building expense indicated above is based on the price, quality
and quantity of each item.
 31

DEPRECIATION EXPENSE

USEFUL
COST LIFE ANNUAL DEPRECIATION

Furniture and Fixtures

PHP 9,400.00 10 PHP 940.00
Property, Plant and
Equipment PHP 215,550.00 10 PHP 21,555.00
Building PHP 345,250.00 10 PHP 34,525.00
Total PHP 57,020.00
Table28. Depreciation Expense

*The total amount of the depreciation of the items above is based on the total useful
life of every item.
 32

SALES PROJECTION (Year 1)

CHICKEN

Total Sales: Php375, 270. 00

NO. OF NO. AVE. PRICE

MONTH HEADS MORTALITY HEADS WEIGHT PER TOTAL SALES
PER
(2%) per FOR HEAD
PROCURED hatch DISPOSAL (KILO) KILO PER MONTH
January

February PHP
150 5 145 2.1 100.00 PHP 30,450.00
March PHP
150 5 145 2.1 100.00 PHP 30,450.00
April PHP
150 5 145 2.1 100.00 PHP 30,450.00
May PHP
150 5 145 2.1 100.00 PHP 30,450.00
June PHP
150 5 145 2.1 100.00 PHP 30,450.00
July PHP
200 8 190 2.1 110.00 PHP 43,890.00
August PHP
150 5 145 2.1 100.00 PHP 30,450.00
September PHP
150 5 145 2.1 100.00 PHP 30,450.00
October PHP
150 5 145 2.1 100.00 PHP 30,450.00
November PHP
200 8 190 2.1 110.00 PHP 43,890.00
December PHP
200 8 190 2.1 110.00 PHP 43,890.00
Total
1800 64 1730 PHP 375,270.00
Table29. Sales Projection of Chicken (year 1)
 33

PIG

Total Sales: Php3, 541, 500.00

NO.OF AVE. PRICE

MONTH HEADS MORTALITY NO. HEADS WEIGHT PER TOTAL SALES
FOR PER HEAD
PROCURED DISPOSAL (KILO) KILO PER MONTH
January

February
PHP PHP
March 25 5 20 50
150.00 150,000.00
PHP PHP
April 30 3 27 50
150.00 202,500.00
PHP PHP
May 50 8 42 50
150.00 315,000.00
PHP PHP
June 40 12 28 50
150.00 210,000.00
PHP PHP
July 75 7 68 50
180.00 612,000.00
PHP PHP
August 50 4 46 50
150.00 345,000.00
PHP PHP
September 35 3 32 50
150.00 240,000.00
PHP PHP
October 40 4 36 50
150.00 270,000.00
PHP PHP
November 50 4 46 50
180.00 414,000.00
PHP PHP
December 80 8 87 50
180.00 783,000.00
TOTAL PHP
475 58 432 3,541,500.00
Table30. Sales Projection of PIG (year 1)
 34

GOAT

Total Sales: Php360, 000. 00

NO. OF
MONTH HEADS MORTALITY NO. HEADS AVE. WEIGHT PRICE PER TOTAL SALES
PER HEAD
PROCURED FOR DISPOSAL (KILO) KILO PER MONTH

January

February

March

April

May

PHP PHP
June 10 3 7 20
200.00 28,000.00
PHP PHP
July 20 2 18 20
200.00 72,000.00
PHP PHP
August 10 3 7 20
200.00 28,000.00
PHP PHP
September 13 3 10 20
200.00 40,000.00
PHP PHP
October 10 3 7 20
200.00 28,000.00
PHP PHP
November 18 4 14 20
200.00 56,000.00
PHP PHP
December 31 4 27 20
200.00 108,000.00

TOTAL PHP
112 22 90 360,000.00
Table31. Sales Projection of GOAT year 1)
 35

MANANG’S FARM HOUSE

PROJECTED INCOME STATEMENT
FOR THE YEAR ENDED DEC.31, 2020- DEC. 31, 2024

Table32. Projected Income Statement

 36

MANANG’S FARM HOUSE

PROJECTED CASH FLOW

FOR THE YEAR ENDED DEC 31, 2020- DEC. 31, 2024

Table33. Projected Cash Flow

 37

MANANG’S FARM HOUSE

PROJECTED BALANCE SHEET
AS OF DEC. 31, 20202- DEC. 31,

Table34. Projected Balance Sheet

 38

SALES PROJECTION

YEAR AMOUNT
2020 PHP 3,177,770.00
2021 PHP 3,336,658.50
2022 PHP 3,503,491.43
2023 PHP 3,678,666.00
2024 PHP 3,862,599.30
Table35. Sales Projection (year 1- year 5)
*For the year 2021- 2024, gross sales will increase by 5%.

PROJECTED COST OF GOODS SOLD

2020 2021 2022 2023 2024

Inventory, beg - Php49,438 .00 Php49,932.38 Php50,431.70 Php50,936.02

Purchases Php189, 950. 00 Php170,955.00 Php169,245.45 Php170937.90

Php172647.28

Less: Inventory, Php49,438 Php49,932.38 Php50,431.70 Php50,936.02

End

COST OF
GOODS SOLD Php378,461.00 Php393,604.00 Php409,366.00 Php385,708.00
Php446146.00

Table36. Projected Cost of Goods Sold

*For the year 2021 and 2022 cost of goods sold will increase by .04%
*For the year 2023, the cost of goods sold will decrease by .06%.
*For the year 2024, the cost of goods sold will increase by .15%.
 39

ANALYSIS

Return on Investment

Return on Investment= Net Profit / Cost of Investment x 100

= PHP 1,480,610.60 / PHP 1,700,000.00

= PHP 87.09

Payback Period

Payback Period = Cost of Investment / Net profit

= PHP 1,700,000.00 / PHP 1,480,610.60 x 100

= 1.15

With the initial investment of Php1, 7 00, 000.00 we can start up running the

Manang’s Farm House Business. The salaries of the employees will increase 2% in

the fourth and fifth year of operation. In every Php1 of initial investment of the

partners will have Php89.07 return value. It is computed that after 1 year and 5

months of operation the initial investment of the partners will be fully recovered thus,

the study is feasible.

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ASSUMPTIONS

* The operation of the business will expand in the neighboring towns after 5 years;

* The profit by will increase 5% annually.

* To increase the salaries expense in the fourth and fifth year of operation

* To be the leading supplier of livestock and poultry products in Cateel, Davao

Oriental and other neighboring towns.

 41

CHAPTER V: SOCIO-ECONOMIC STUDY

The challenges faced by our country in securing food as well as nutritional security to

fast growing population need an integrated approach for poultry and livestock

production. Apart from providing meat, it is also a source of bristles and manure. This

study provides employment opportunities to seasonally employed rural farmers and

gives supplementary income to improve their living standards. There are a lot of

features in this study that needs to be deliberated. For further explication, the

researchers used P.E.S.T.L.E (Political, Economic, Technical, Legal and

Environmental Factors) Analysis to present the political, economic, social, technical,

legal and environmental factors.

PESTLE analysis
Political Factors
o Must consider the taxation.

o Labor, accounting and internal marketing laws must be followed.

Economic Factors

o Understand consumer’s preferences.

o Most of income is from sell meat.

o Must focus on launching healthy meat.

o Must target customers with good purchasing power.

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Social Factors

o Need to target health-conscious people.

o Have launched good quality products.

Technological Factors

o Using social media effectively for promotions.

o The of use high technology in producing fine products in short time.

o Constant changes in the technology as well as threat.

Legal Factors

o Must obey health and safety rules.

o Manang’s Farmhouse has done-well in securing all the rights of their

business.

Environmental Factors

o Must operate in an area where there is no shortage of water.

o Need to come up with environment-friendly products.

Political Factors
 43

Taxation is the inherent power by which the sovereign state imposes financial

burden upon persons and property as a means of raising revenues in order to defray

the necessary expenses of the government ( tax digest by Crecencio Co Untian,

2002). Every organization especially large businesses have to pay tax since failure to

pay is punishable by law. Government make exactions for revenue in order to

support their existence and carry out their legitimate objectives (Tax law and

Jurisprudence by Justice Vithg, 2000).

Since government is collecting taxes, expenses within the organization must also

be accurate such as labors, equipment use in operation, and other cost for

production. Employees should receive right salaries. Implementing law to account all

transactions in the operation is necessary. Accounting is an art of recording,

classifying and summarizing in a significant manner and in terms of money,

transactions, and events which are, in part at least, of a financial character, and

interpreting the results thereof. (volume 1. 1991, ed.)

Economic Factors

One goal of an organization is to be profitable. Taking into the preferences of the

consumer , we have conducted an interview randomly selected 50 citizens of Cateel,

Davao Oriental to ensure that the strategies, products, prices and so on that is put

into operation will be successful. Base on the survey it results that people looked-for

a good quality meat which is inexpensive and that strongly set us to pursue this

study.
 44

These factors can be further broken down into macro-economic and micro-

economic factors. Macro-economic deals with the management of demand in an

organization. Governments use interest rate control, taxation policy and government

expenditure as their main mechanism they use for this ( Article VI, section 28,

paragraph 1). Mirco-economic factors are all about the way people spend their

incomes. Manang’s Farmhouse constitutes the livelihood of rural poor belonging to

the lowest socio-economic strata and has means to undertake for instigating poultry

and livestock with improved foundation stock, proper housing, feeding and

management.

Social Factors

As a marketer you have to understand costumers and what drives them.

Considering the beliefs and attitudes of the citizens living within the community,

according to the survey people was being separated of various religions. Some

religions cannot eat several meat that we produce still producing a good quality

product is necessary especially the main concern of this study is the citizens in our

society. Loyalty, courtesy, honesty, being watchful and vigilant is essential in dealing

the business particularly to health-conscious people which are the prior of

endangerment and can be strongest threat of a certain organization.

Technological Factors

To make certain that numerous buyers and vendors would be acquainted by this

business, we set up new ways of producing goods and services, distributing goods
 45

and services and communicating with target market through facebook page to

convince the public that it worth buying. We all know how fast the technological

landscape changes and how this impacts the way we market our products.

Legal Factors

A certain organization should implement a health and safety rules. It is clear that

one of the goals of Manang’s Farm House needs to know what is and what is not

legal in order to trade successfully.

Following are the major norms and recommended practices.

I. Housing management:

o Construct shed on dry and properly raised ground.

o Avoid water-logging, marshy and heavy rainfall areas.

o The livestock and poultry animal shelter should be well ventilated.

o The corners of feed troughs, drains and walls should be rounded for easy

cleaning.

o Provide adequate open space for each animal i.e. double the covered area

o Provide proper shade and cool drinking water in summer.

o Dispose of dung and urine properly.

o Individual pens for boars/lactating sows should be constructed.

o The dry sows/fatteners can be housed in group pens.

o Give adequate space for the animals.

 46

II. Selection of breeding stock:

o Purchase the stock from a reliable breeder or from nearest livestock market.

o For commercial poultry and livestock implementation upgraded / cross bred or

exotic stock in good health should be selected.

o While selecting a gilt or sow primary aim should be to secure a female that will

produce large survivable litter and which can attain marketable weight. This

can be done with the help of pedigree records/Veterinarian / Bank's technical

officer.

o Purchase animals which are ready to be bred.

o Identify the newly purchased animal by giving suitable identification mark (ear

notching or tattooing).

o Vaccinate the newly purchased animals against diseases.

o Purchase a minimum economical unit as suggested.

o Follow judicious culling and replacement of animals in a herd.

III. Feeding management:

o Feed the animals with best feeds.

o Give adequate concentrates in the ration.

o Provide adequate vitamins and minerals.

o Provide adequate clean water.

o Give adequate exercise to the animals.

 47

o Feeding of the sows during pregnancy is utmost important for increased litter

size.

o The feed requirement of lactating sow varies with the size of the litter, weight,

size and age of sow.

o Replacing the balanced rations to minimise the cost of production.

o The feeding regime adopted should take care of all the nutrient requirements

of various categories of pigs.

IV. Protection against Diseases:

o Be on the alert for signs of illness such as reduced feed intake, fever,

abnormal discharge or unusual behavior.

o Consult the nearest veterinary aid center for help if illness is suspected.

o Protect the animals against common diseases.

o In case of outbreak of contagious diseases, immediately segregate the sick

and the healthy animals and take necessary disease control measures.

o Deworm the animals regularly.

o Examine the faces of adult animals to detect eggs of internal parasites and

treat the animals with suitable drugs.

o Wash the animals from time to time to promote sanitation.

V. Care during Pregnancy:

 48

Give special attention to pregnant sows one week before farrowing by providing

adequate space, feed, water etc. The sows as well as farrowing pens should be

disinfected 3-4 days before the expected date of farrowing and the sows should be

placed in the farrowing pen after bedding it properly.

VI. Care of Animals

o Take care of new born animals by providing guard rails.

o Treat / disinfect the navel cord with tincture of iodine as soon as it is cut with a

sharp knife.

o Protect against extreme weather conditions, particularly during the first two

months.

o Supplementation of Iron to prevent anemia is necessary.

Environmental Factors

This factor include information on land, livestock markets, availability of water, feeds,

veterinary aid, breeding facilities, marketing aspects, training facilities. It also

includes information on the number and types of animals to be purchased, their

breeds, and production performance. These must be well-organized and well-

planned to ensure that the consumer’s demands of the products they buy are

sourced ethically, and if possible from a sustainable source.

49
 50

CHAPTER VI: FORM OF BUSINESS ORGANIZATION STUDY

This chapter discusses the organizational management of Manang’s Farm

House and the employee’s qualification. The researchers agreed to follow the

partnership form of organization because partnership business (Business Ethics) is

effective for starting a business and in partners you are able to share profit, ideas

and responsibilities that make a business successful.

FORM OF BUSINESS ORGANIZATION

Manang’s Farm House is a partnership business. Partnership is an association of

two or more people as partners that shares profits and liabilities of a business

venture. The advantage of partnership is that net income of partners is not taxed as

separates entity, unlimited liabilities, co-ownership of property. Partnership business

is effective in a business venture, and so Manang’s Farm House prefer the

partnership form of business.

MANAGER
 51

Fig

MANAGER

CASHIER UTILITY

SECURITY
DRIVER MAINTENANCE
GUARD

ure4. Manang’s Farm House Business- Organizational Structure

POSITION QUALIFICATION
RESPONSIBILITIES

MANAGER  Must be a business  Responsible for

administration managing and handling
graduate. a business.
 Have work experience
for being a manager or
has at least ½ years of
work expercience.
 Has a good moral and
knows how to handle
employees and
business problems.

CASHIER  At least a college or  Responsible for

high school graduate. securing the money and
 Must be honest. the transaction of the
 Must have a good business it may cash
moral. out or cash in.
 Must have at least 1
year of work
experience.
 52

UTILITY  Must be 20 years old  Responsible for electric

and above. wiring, water
 Must have work installation and
experience related to repairing.
the job.

SECURITY  At least high school  Responsible for

GUARD graduate. securing the work place
 Must have at least 1 safe.
year work experience.
 Always alert.
 Must be active.

DRIVER  Must be 20 years old  Responsible for the

and above. transportation of the
 Must have a driver’s product, goods, raw
license materials and delivery
 Must have a work service.
experience in driving.

MAINTENANCE  Must be 18 years and  Responsible for

above. cleaning the area and
 Long patient taking care of the farm
 Hard working animals.
 Must have a good
moral.
 Must have at least 1
year work experience.