PRODUCTION OF MARKET SWINES A Project Proposal

Presented to: The Members of the Panel In Partial Fulfillment of the Requirements for the Subject Technology and Livelihood Education (T.L.E.) - III AFA- I

Presented by: JOSUE P. NITUDA Project Proponent III-MAYON Daniel R. Aguinaldo National High School Matina, Davao City

Submitted to: Mr. Jesus Oreiro T.L.E. III Teacher

January 2012 S.Y. 2011-2012

TABLE OF CONTENTS Title Page Acknowledgement Executive Summary Justification Objectives General Objective Specific Objective Procedure Proponent Project Organization and Management Project Organizational Chart Duties and Responsibilities Budgets A. Inputs B. Operating Expenses Estimated Cost and Production (Exhibit 1) C. Revenues Projected Income Statement (Exhibit 2) D. Projected Financial Statement Projected Return on Investment (Exhibit 3) Projected Benefit Cost Ratio (Exhibit 4) Conclusions Recommendations References Glossary Appendices i iii 1 3 4 4.1 4.2 5 6 7 7.1 7.2 8 - 11 8 9 10 11

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ACKNOWLEDGEMENT The proponent would like to express his special thanks of gratitude to the people who helped and contributed in the accomplishment of the project proposal. First, the proponent would like to thank Mr. Jesus Oreiro, TLE III Teacher, for guiding, for providing tips and facts, for sharing knowledge, for instructing the right format, and for supporting throughout the project proposal. Second, the proponent would like to give his special thanks to his parents, Santiago B. Nituda and Luisita P. Nituda, father and mother respectively for showing full support and sharing sufficient and efficient knowledge in guiding the proper information for the project proposal. Third, the proponent would also like to thank his brothers, Jerald Nituda and Joel Nituda, for showing support in encoding and printing the papers. Fourth, the proponent would also to thank his classmates and schoolmates for sharing the ideas and opinions in the making of the project proposal. Finally, the proponent would like to give its full thanks to our Almighty God for providing me knowledge, wisdom, and understanding in building the project proposal.

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Production of Market Swines A PROJECT PROPOSAL EXECUTIVE SUMMARY The project is all about the production of market swines which indeed a common business plans throughout our country. This project offers an increase in food number wherein a swine is being fed up with efficient quality of vitamins and minerals either in the form of feeds or aqueous vitamin intake (mixture of vitamin pellets and water) for the assurance of gaining and maintaining the required weight of a swine. Feeds are used because, despite of they are artificially made and is a chemical compound, and it increases the rate of meat than the flabs of a swine. Meat is what the clients are after. They arent recklessly purchase them by their appearance. Numerous swine raisers are currently thriving in the Philippines. They may increase the weight of their swines, but still cannot manage to attract customers. It is mainly because of the quality of the swines (more meat = more clients; more fats = less clients). To make sure a productive business, the manager must follow the proper procedures in raising swines including the proper intake of food, shelter, water supply, etc. The project will be directly managed by the proponent. An assistant manager will also be chosen by the proponent. Caretakers will also be hired in the said project. Below are proposed and forecasted facts: 1. Size of production 2. Marketable Size 1 10 weaned piglets 80 kg.

3. Production Period 4. Projected Selling Price 5. Projected Gross Revenue 6. Estimated Cost of Production 7. Projected Net Income 8. Projected Return on Investment 9. Projected Ratio Cost

6 months Php 90.00 / kg live weight Php Php 54,344.00 Php 17,656.00 32% 75%

Justification [1] Pork is the culinary name for meat from the domestic pig (Sus domesticus), which is eaten in many countries. It is one of the most commonly consumed meats worldwide, with evidence of pig husbandry dating back to 5000 BC. [2] Pork is eaten in several forms, including cooked. Pork can also be processed into different forms, which may also extend the shelf life of the product, with the resultant products being cured (some hams, including the Italian prosciutto) or smoked or a combination of these methods (other hams, gammon, bacon or pancetta). It is also a common ingredient in sausages. Charcuterie is the branch of cooking devoted to prepared meat products, many from pork. However, by some definitions, "pork" denotes only fresh pig meat [3] Its myoglobin content is lower than that of beef, but much higher than that of chicken. The USDA treats pork as a red meat. Pork is very high in thiamine (vitamin B1). Pork with its fat trimmed is leaner than the meat of most domesticated animals, and is high in cholesterol and saturated fat.

Reference: [1] [2] [3] http://en.wikipedia.org/wiki/Pork http://en.wikipedia.org/wiki/Pork http://en.wikipedia.org/wiki/Pork#Nutrition

Objectives [4.1] General Objective: To produce money income from quality pork meat in the market at the price of Php 90.00 per kilogram live weight.

[4.2]

Specific Objective: 1. Satisfy the demands of the local population for pork meat. 2. Provide reasonable income to the co-operators who initiated the cooperative. 3. Produce quality safe pork meat throughout the market. 4. Encourage people in the community to engage in such business. 5. To supply meat for personal needs. 6. To check the assurance of the business of having potential for high profits in a relatively short period of time.

Procedure 1. Explore and learn the proper way of raising pigs. 2. Construct proper housing for the pigs. It should ensure the maximum performance of the pigs. A good hog house may not improve the health conditions of the animals but a poor one will certainly increase disease problems easily. 3. Provide the pig house with the proper equipment such as feeders and drinking troughs. Feeders and water troughs are best made of concrete although other materials may be used. Some people use discarded automobile or truck tires cut in halves. 4. Five signs to look for when buying stock: Fine and shiny hair Energetic and alert eyes, not droopy Clear eyes, no dried tip secretions Firm belly does not sag or hang down Body and feature proportions are symmetric 5. Keep the pigs healthy by: 1. Provide clean and dry housing. 2. Feed appropriately. 3. Protect the pigs from pests and diseases. 6. Hogs are marketed when they reach at least 80 kg, which would usually take around five to six months to achieve. Select a market which demands a high number of pork meat.

Proponent Name of the Proponent Name of the Project JOSUE P. NITUDA PRODUCTION OF MARKET HOGS Production Area Size Production Location Initial Capital Investment Target Date of Implementation 200 sq. meters PUAN, DAVAO CITY Php 60,000.00 APRIL 2012

Family Background of the Proponent Name of Father SANTIAGO B. NITUDA Albatross Academy Name of Mother LUISITA P. NITUDA Divine World College Name of Brothers 1. JOEL P. NITUDA Daniel R. Aguinaldo National High School 4th year JERALD P. NITUDA Daniel R. Aguinaldo National High School 1st year PEARLY JOY P. NITUDA 3 yrs. old

2.

Name of Sister

Project Organization and Management [7.1] Projected Organizational Chart Owner / Manager

Asst. Manager

Caretaker

Caretaker

[7.2]

Duties and Responsibilities Owner - Acts as the manager of the production, monitors the behaviour and duties of the members, and withholds the financial concerns. Asst. Manager - does the paperwork, record all the expenses, and take over managers duty if ever he/she is gone. Caretaker - maintain the cleanliness of the facilities and housing, and does the feeding duty of the pigs.

BUDGETS A. Inputs 1. 10 piglets 2. Waterers, Feeders, Equipment, Facilities and Supplies 3. Fresh Water 4. Feeding Supplies 5. Labor Cost Assumptions and Possibilities 1. Price of piglet was based on the current price (Php 1,500.00) at weaning age. 2. The facility shall occupy a 200 sq.m. of land. 3. Housing shall be built in the land using cement as flooring, wooden and cemented posts as poles, proper drainages, and an underground septic tank for the disposal of wastes. 4. 5 waterers shall be installed with a fresh source of water (DCWD). 5. Piglets shall be vaccinated to prevent weakening of production. 6. Piglets shall also be dewormed. 7. Facilities shall be properly disinfected. 8. Weekly intake of vitamins shall be done throughout the production. 9. Estimated amount and prices of feeds and other production inputs are as follows: Starter feed (kg) 26.80 Grower feed (kg) 102.20 Finisher feed (kg) 77.40 9. An estimated average weight of hog will be the marketable size and an estimated selling price of three (3) assumptions Php 80.00 / kg, Php 85.00 / kg, and Php 90.00 /kg. 10. In marketing hogs, a direct buyer is already in contact. 8

B. Operating Expenses Estimated Cost of Production (Exhibit 1) 1. Cost of Piglets 10 piglets at Php 1,500.00 each Php 15,000.00 Php 10,000.00 Php 1,800.00 Php 100.00 Php 120.00 Php 900.00

2. Equipment, Facilities and Supplies 3. Cost of Water 4. Vaccines 5. Vitamins 6. Workers wage 7. Feeding supplies Starter feed (kg) P 26.80 x 30 kg x 6 weeks Php 300.00 / month x 6 months Php 10.00 / hog x 10 hogs Php 5.00 x 24 weeks Php 5.00 / day x 180 days

Php 4,824.00

Grower feed (kg) P 50.00 x 30 kg x 9 weeks Php 13,500.00 Finisher feed (kg) P 30.00 x 30 kg x 9 weeks Php 8,100.00 Total Cost of Production.Php 54,344.00

Note: The remaining amount of Php 5,656.00 from Php 60,000.00 initial capital investment will be sent for contingency allowance.

C. Revenues Projected Income Statement (Exhibit 2) Assumption #1 If per kilogram per hog is Php 80.00 Assumption #2 If per kilogram per hog is Php 85.00 Assumption #3 If per kilogram per hog is Php 90.00

10 hogs x Php 80.00 per kilogram x 80 kg

10 hogs x Php 85.00 per kilogram x 80 kg

10 hogs x Php 90.00 per kilogram x 80 kg

GROSS SALES Php 64,000.00

GROSS SALES Php 68,000.00

GROSS SALES Php 72,000.00

Less total cost of production Php 54,344.00

Less total cost of production Php 54,344.00

Less total cost of production Php 54,344.00

NET INCOME Php 9,656.00

NET INCOME Php 13,656.00

NET INCOME Php 17,656.00

Remarks: The recommended selling price of hog is Php 90.00 per kilogram (Assumption #3) because it gives the highest profit.

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D. Projected Financial Statement Projected Return on Investment (Exhibit 3) ROI =

   

x 100

 

x 100

= 32% This means that for every 1 peso (Php 1.00) invested by the proponent, it will earn Php 32.00. Therefore, it manifests that this proposal project is SATISFACTORLY and PROFITABLE because ROI is greater than 10% (ROI>10%). Projected Benefit Cost Ratio BCR =
      

x 100

x 100

= 75% This means that for every 1 peso (Php 1.00) income to the proponent, it will incur expenditure of 75 centavos.

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CONCLUSION In almost every rural household in the Philippines, hog raising is a very popular enterprise such that there is a proliferation of backyard producers, which dominates the swine industry. Other than providing a secondary source of income for small families, hog raising is a fast growing home based business in the Philippines which has the potential for high profits in a relatively short period of time.

RECOMMENDATIONS The proponent recommends maintaining the cleanliness and sanitation of the facilities and housing daily. Once the wastes are not disposed, it will emit gaseous smell around its area. Furthermore problem is that it may diffuse out of the project area and may cause unwanted chaos throughout the neighbourhood. The proponent recommends also increasing the number of products so that the profit will be high. Thus, affecting the factors the products needed i.e. feeds, water, etc. Regular vitamin intake of the products is highly recommended throughout the production to prevent sickly pigs from the production. Sick pigs affect the marketing.

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REFERENCES https://docs.google.com/viewer?a=v&q=cache:arhwQQukAOkJ:www.das.psu.ed u/pdf/breeding-swinereference.pdf+hog+raising+sample+assumptions&hl=tl&gl=ph&pid=bl&srcid=AD GEEShUMEDPu8qqwd2fD0dOWjEKs0axu48yDrBSeFII5TLDIz9SgyxvZ7sHAA6 0IDFpIt6JWXAHBu1zI-Y0_5huMTw61ZJUr8fd6iZAdEDhrhfv4xT5vzGECxEdfGgoHwbx3IqJuOj&sig=AHI EtbSO7SCqoODWYlBd5Zat46pH4K-F8Q http://books.google.com.ph/books?id=eZ0YtItVsWUC&pg=PA14&lpg=PA14&dq= hog+raising+sample+assumptions&source=bl&ots=j7YP8wZ78B&sig=L0EdRHlsNfrOKq5vg49yJCpUng&hl=tl&sa=X&ei=tk39TtW3FOTkmAXjr4iBAg&v ed=0CCcQ6AEwAg#v=onepage&q=hog%20raising%20sample%20assumptions &f=false http://pinoyagribusiness.com/forum/swine/roi_for_hog_raisinghelp-t1702.0.html https://docs.google.com/viewer?a=v&q=cache:C9NPTLRgMZUJ:rfu08.da.gov.ph/ pdf/Hog%2520.pdf+hog+raising+assumptions&hl=tl&gl=ph&pid=bl&srcid=ADGE EShLoLnoiy7knCWK3eEH3v2Ik3RLOFe4bANTRRHe7RzW1GVP32Km3yel9tkqYKK9sOGeOEh_CMRkJhPOR_tuiwqeAgW55GPRcfeZ7JeRmCqEwy1jD3ZCjlKiHq4hM8wv2QOuv&sig=AHIEtbToxLEMtuca_85qjZ1WxBCQcx1khA

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Glossary Assumption - a statement that is assumed to be true and from which a conclusion can be drawn; "on the assumption that he has been injured we can infer that he will not to play" Aqueous - Relating to, similar to, containing, or dissolved in water; watery. Deworm - To cure (an animal) of worms; worm. Disinfect - To cure (an animal) of worms; worm. Drainage - natural or artificial removal of surface and sub-surface water from an area. Flab - unsightly or unwanted fat on the body; flabbiness Gross Revenue - "Raw" sales income; the amount customers actually pay the company when they make their purchases. Pellet - A small, solid or densely packed ball or mass, as of food, wax, or medicine. Swine - Any of various omnivorous, even-toed ungulates of the family Suidae, including pigs, hogs, and boars, having a stout body with thick skin, a short neck, and a movable snout. Vaccine - a biological preparation that improves immunity to a particular disease.

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Appendices

Figure 1: Weaned Piglet

Figure 2: Market Hog

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