Starting a Business

II. I. INVESTMENT REQUIREMENTS* PROCEDURES The curing method is applied in tocino making. This involves the application of salt, sugar, nitrate, and other chemical preservatives that kill micro-organisms or delay microbial action. 1. 2. 3. Select good quality meat. Trim and weigh. Slice meat in thickness. Weigh meat slices and prepare the curing ingredients per kilo of meat. 4. Mix meat with salt, curing salt, phosphate, and Vitamin C (dissolved in cup water). 5. Add the extenders and mix well until they dry. 6. Add the rest of the ingredients and mix again. 7. Cure at room temperature for 8 to 10 hours or at refrigerator for 8 to 12 hours. 8. Pack tocino in polyethylene plastic bag in or kg. package. Remove the trapped air inside the bag and seal immediately. 9. Store in freezer. 10. For 2 kilos of tocino, double all ingredients. III. COSTING AND PRICING A. Product Costing IV. Cost Php 165.17 16.00 1.50 Php 182.67

Production Cost After adding all ingredients to the 1 kg. meat, the yield of the finished product should weigh to 1.5 kgs. Particulars Total Direct Cost Add: Total Indirect Cost Total over the 1.5 kgs. Yield Production cost per kg. B. Product Pricing Php 144.15 28.83 Php 172.98 Php 180.00 Cost Php 182.67 33.55 216.22 / 1.5kg Php 144.15

MEAT PROCESSING

A. Cost of Utensils
Utensils Measuring cup/spoon for solid & liquid (plastic or stainless steel) Spatula Kitchen knife Knife sharpener Kitchen spoon Ladle Tong Stainless bowl 32 Rectangular tray (plastic or aluminum) Subtotal Cost Php 152.50 62.50 67.00 61.25 76.25 52.00 91.25 305.00 305.00 Php 1,172.75

Production Cost per kg. Add: 15%-20% markup of the Production Cost Selling Price per kilogram Market Price per kilogram

B.

Equipment & Sources Equipment Weighing scale for spices (0-5 kgs.) Weighing scale for meat (1-10 kgs.) 11 cu ft refrigerator (can cure 40 kgs. meat) Polysealer (for sealing plastic bags) Styrofoam cooler (for transport of meat products) Subtotal

Cost Php 335.75 685.50 35,065.75 1,753.25 305.00 Php 38,145.25

The higher the volume of production per day (i.e., more than 70 kgs.), the lower the production cost, thus increasing the markup to more than 50%. ** If price per kg. is lower compared with the existing market price, increase markup to 50% or more. REGISTRATION REQUIREMENTS 1. Business Name Registration Visit Department of Trade & Industry (DTI) Provincial Office where the business is located or log on to www.bnrs.dti.gov.ph Mayors Permit/ Residence Certificate & Sanitary Permit From the local municipality where the business is located Tax Identification Number (TIN) Bureau of Internal Revenue National Office, Agham Road, Diliman, Quezon City Trunkline: (632) 981.7000 / 981.8888 Email: contact_us@cctr.bir.gov.ph Website: www.bir.gov.ph BFAD Certificate From the Bureau of Food and Drugs (BFAD) Civic Drive, Filinvest Corporate City Alabang, Muntinlupa City Tel. No.: (632) 807.0721 / 842.5606 Email: bfad@bfad.gov.ph Website: www.bfad.gov.ph

Direct Cost Particulars Raw Material (1 kg. pork meat) Ingredients used for 1 kg. Packaging Material Total Direct Cost Indirect Cost

C.

Raw Material/Ingredients/Packaging Material Item Unit Cost Raw Material Pork (lomo, pigue or kasim) 1kg. Php 165.17

2.

Ingredients Salt Curing salt Sugar Phosphate (dissolved in cup water) Anisado wine Pineapple Juice Crushed garlic (garlic powder) Vitamin C powder Food color, red (optional) Vetsin (optional) Subtotal

2 tbsps. tsp. 12 tbsps. 1 tsp. 2 tbsps. 2 tbsps. 2 tbsps. tsp. tsp.

0.77 0.15 6.86 0.54 2.58 0.77 3.81 0.54 0 Php 181.17

Particulars Labor Cost (P350/day min. wage / 70 kgs. Produced x 2 workers) Transportation cost (150/ 70kgs) Water & Electricity (P220 consumption/70 kgs.) Contingency cost (10% of direct cost) Total Indirect Cost * Based on 70kgs. average daily produce

Cost Php 10.00

3.

2.14 3.14 18.27 Php 33.55 4.

Packaging Material Polethylene Plastic Bag (6 x 12) for kg. meat product *Based on current market prices

Php 1.50

V.

FINANCING FACILITY SSS Special Financing Program Social Security System (SSS) Loans and Investment Office SSS Building, East Avenue, Diliman, Quezon City Tel. Nos.: (632)920.6401 / 920.6446 Email: member_relations@sss.gov.ph Website: www.sss.gov.ph Small & Medium Enterprise Credit Phil. Business for Social Progress 18th Flr., Phil. Social Devt. Center, Magallanes cor. Real St. Intramuros, Manila Tel. Nos. (632)527.7741 to 51 or 527.3751 Fax No. (632)527.3743 Email: pbsp@pbsp.org.ph or smec@pbsp.org.ph Website: www.pbsp.org.ph Peoples Credit Finance Corporation 395 Sen. Gil Puyat Ave. Makati Tel. Nos. (632) 897.8549 / 897.5822 Fax No. (632) 897.8523 / 897.8528 Email: info@pcfc.ph Website: www.pcfc.gov.ph

Technical Education and Skills Development Authority for Women Center 37 East Service Rd. South Superhighway, Taguig City Telefax. No.: (632) 818.8062 Trunkline: (632) 814.4076 loc. 278 Email: tesdawomen@yahoo.com Website: http://twc.tesda.gov.ph

VI.

TRAINING INSTITUTIONS Department of Science and Technology Science and Technology Information Institute (DOST-STII) Gen. Santos Ave. Upper Bicutan, Taguig, Metro Manila Tel. Nos.: (632)837.2191 to 95 / Telefax: (632)837.7520 Email: vbb@stii.dost.gov.ph Website: http://www.stii.dost.gov.ph Animal Product Development Center Bureau of Animal Industry (BAI) Fernando St., Marulas, Valenzuela City Tel. Nos.: (632)291-6834 / 293.5489 Email: apdc@manila-online.net Technology Resource Center (TRC) TLRC Building, 103 J. Abad Santos cor. Lopez Jaena Sts., Little Baguio, San Juan, Metro Manila Tel. Nos.: (632) 727.6205 Website: www.tlrc.gov.ph BUREAU OF SMALL AND MEDIUM ENTERPRISE DEVELOPMENT (BSMED) rd 3 Floor, OPPEN Building 349 Sen. Gil Puyat Ave., Makati City Tel. Nos.: (632) 890.4968 / 897.7596 / 897.1693 Fax No.: (632) 896.7916 Email: bsmed@dti.gov.ph Website: www.dti.gov.ph Printed July 2007