Project Proposal

Monkayo Slaughterhouse Improvement

This project proposal is a collaborative effort of Municipal

Agriculture Office – Monkayo and Monkayo College Arts,
Sciences, and Technology, the research arm of the Local
Government Unit of Monkayo

Marcelino F. Cuyab, Ph.D. – Academic Program Head, BA

Dennis C. Ramo, Ph.D. – Academic Program Head, BAT
Dave E. Aparecio, MM
Jesanni B. Atienza, MBA
Mary Chierife C. Funa, CPA
MonCAST

Dr. Christopher M. Edjic. – Municipal Agriculturist

MAGRO

TABLE OF CONTENTS

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TABLE OF CONTENTS

Table of Contents Page No.

Title Page 1
Table of Contents 2
List of Tables 3
List of Figures 4
Project Rationale 5
Technical Assessment of the Project
Market Study 6
Historical Demand – Monkayo Market 6
Projected Demand – Monkayo Market 7
Current Slaughterhouse Capacity 7
Target Slaughterhouse Capacity 7
Projected Demand – Target Capacity Analysis 8
Total Projected Demand – Outside Monkayo 8
Intended Market Areas of Slaughterhouse 9
Market Share – Outside Monkayo 10
Proposed Slaughter Fee Rates 10
Projected Receipts from Slaughterhouse Operations
Project Cost 12
Project Implementation Schedule 13
Beneficiary 13
Appendices
Appendix A – Market Analysis Outside Monkayo 14
Appendix B – Detailed Computation for Projected Receipts 18
Appendix C – Engineer’s Building Perspective & Lay-Out 20
Appendix D – Schedule of Specifications – Equipment 30

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LIST OF TABLES

Table No. Title Page No.

Table 1 Historical Demand of Slaughterhouse
Services - Monkayo 6

Table 2 Projected Demand of Slaughterhouse

Services – Monkayo 7
Table 3 Current Service Capacity 7
Table 4 Target Service Capacity 8
Table 5 Projected Demand – Target Capacity
Analysis of Slaughterhouse 8

Table 6 Projected Demand – Outside Monkayo Market 9

Table 7 Market Share – Outside Monkayo Market 10

Table 8 Current and Proposed Rate for Slaughterhouse

Services – Hogs 10

Table 9 Current and Proposed Rate for Slaughterhouse

Services – Cattle 10

Table 10 Current and Proposed Rate for Slaughterhouse

Services – Goat 11

Table 11 Total Projected Receipts from Slaughterhouse Operation 11

Table 12 Slaughterhouse Improvement Project Cost 12

Table 13 Project Implementation Schedule 13

Table 14 Historical Demand of Slaughterhouse Services

– Outside Monkayo 14

Table 15 Projected Demand – Montevista 15

Table 16 Projected Demand – Compostela 16
Table 17 Projected Demand – Trento 16
Table 18 Projected Demand – Current Capacity Analysis – Montevista 16
Table 19 Projected Demand – Current Capacity Analysis – Compostela 17

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Table 20 Projected Demand – Current Capacity Analysis – Trento 17
Table 21 Projected Receipts – Hogs: Monkayo Market 18
Table 22 Projected Receipts – Hogs: Outside Monkayo Market 18
Table 23 Projected Receipts – Cattle 19
Table 23 Projected Receipts – Goat 19

LIST OF FIGURES

Figure No. Title Page No.

Figure 1 Map – Intended Market Areas 9

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PROJECT RATIONALE

The expansion of the municipal slaughterhouse is one of the top priorities for the Monkayo

local government, which will be undertaken in response to the pressing need for slaughtering

services and poultry dressing facilities in the developing local economy. In 2019, the country was

affected by the African Swine Flu (ASF). As a result, local government units, pig farmer

organizations, veterinary groups, the commercial sector, and academic institutions collaborated

to reduce the number of cases. This is also one of the centerpieces of the effort to improve the

slaughterhouse services to be able to sustain the safety control of the meat products. With this

objective and desirable outcome, the Monkayo municipal administration will work to upgrade the

existing meat facilities and ensure to meet the National Meat Inspection Services' standards.

The Municipality of Monkayo currently has policies in place for Municipal

Slaughterhouse/Abbatoir and Corral Fees, which include rules and regulations governing the

operation, such as obtaining a permit to slaughter, the nature and imposition of fees, and

maintaining the municipal abbatoir's cleanliness and sanitation. Moreover, in accordance to R.A.

9296 where the local government units shall regulate among others, meat inspection, meat

transport and post-abbatoir control.

The project is expected to deliver a sustainable, ecologically safe, and high-quality

products to the municipality, the region, and the entire country. Specifically, the activities are

expected from the project include,

a. Local ordinance requiring all food businesses to serve only inspected meat in order to

provide consumers with access to clean and safe meat products that satisfy "AA"

standards.

b. Operation of the Municipal Slaughterhouse compliant with environmental laws and

regulation, ensuring continued compliance with national standards

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 c. TESDA accreditation for butchery, slaughtering, and meat processing that would

increase farm productivity and livelihood opportunities for the people of Monkayo.

d. Lastly, the slaughterhouse may be used as a research and laboratory facility that will

give an educational opportunity for MonCAST, the local agriculture office's academic

partner with its BAT program.

TECHNICAL ASSESSMENT OF THE PROJECT

Market Study
The slaughterhouse expansion project aims to expand it service capacity to
address the growing demand of quality and safe meat to consume around the
identified neighboring municipalities such as; Montevista, Compostela, and Trento.
A market study has been administered in each market areas to analyze the
projected demand of slaughterhouse services against its target service capacity.

Historical Demand – Monkayo Market

Shown in the table 1 below is the historical demand of Monkayo market,

there are two (2) identified market classifications which are the public market meat
vendors and individuals, analyzed for the past three years. Figures are in number
of heads.

2018 2019 2020

Meat Vendors 4,641 4,819 4,841

Individuals 10,829 11,244 11,210

Total Historical Demand - Monkayo 15,470 16,063 16,136

Table 1. Historical Demand of Slaughterhouse Services - Monkayo

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 Projected Demand – Monkayo Market

Shown in the table 2 is the projected demand of Monkayo market. Based

on the analysis on its historical demand a 2.10% average increase was determined

to project its demand for the next three (3) years. Figures are in number of heads.

Average Increase Projected

Base Demand
Percentage Demand

Year 1 16,051 2.10% 16,388

Year 2 16,388 2.10% 16,732

Year 3 16,732 2.10% 17,083

Table 2. Projected Demand of Slaughterhouse Services - Monkayo

Current Capacity

Slaughterhouse current capacity is averaging in to 20 heads per day with

its 2:00 AM to 5:00AM regular operation schedule. See details in table 3 below.

Figures are in number of heads.

Daily Monthly Annually

Slaughterhouse – Current
20 600 7,200
Capacity

Table 3. Current Service Capacity

Target Capacity

The slaughterhouse expansion project will triple its current service

capacity based on the additional resources from its facilities to manpower, which

will address the growing demand of its services. A comparison of current and

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 targeted service capacity of slaughterhouse is shown in table 4. Figures are in

number of heads.

Current Capacity Target Capacity

Slaughterhouse Service Capacity 7,200 21, 600

Table 4. Target Service Capacity

Projected Demand – Target Capacity Analysis

Target Service Capacity of slaughterhouse is analyzed against the

Projected Demand of Monkayo market which resulted to an excess capacity that

can accommodate the demand of target markets from nearby municipalities;

Montevista, Compostela, and Trento. Figures are in number of heads.

Projected
Target Service Excess
Demand –
Capacity Capacity*
Monkayo Market

Year 1 21, 600 16,388 5,212

Year 2 21, 600 16,732 4,868

Year 3 21, 600 17,083 4,517

Table 5.Projected Demand – Target Capacity Analysis of Slaughterhouse

Projected Demand – Outside Monkayo

Projected demand of the target nearby municipalities are shown on table

6. Projected demand was computed by analyzing their respective historical
demand based on the 15 kg per capita meat consumption. Details of historical
demand computation for identified markets outside Monkayo is reflected in the
appendices. Figures are in number of heads.

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 Target Market - Nearby
Year 1 Year 2 Year 3
Municipalities

Montevista 3,374 3,516 3,660

Compostela 7,289 7,562 7,841

Trento 4,186 4,351 4,520

Total Projected
Demand – Outside 14,849 15,429 16,021
Monkayo

Table 6. Projected Demand – Outside Monkayo Market

Intended Market Areas of Slaughterhouse

Shown in the map below is the intended market areas which are marked

with red flags.

Figure 1. Map – Intended Market Areas

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 Market Share

The figures have shown the market share of Slaughterhouse after

expansion from the target nearby market from Montevista, Compostela, and
Trento. The excess capacity can accommodate the three (3) year projected
demand outside the municipality with 35%, 32%, and 28% respectively.

Projected
Excess Market Share
Demand Outside
Capacity (Head) (%)
Monkayo (Head)

Year 1 5,212 14,849 35%

Year 2 4,868 15,429 32%
Year 3 4,517 16,021 28%
Table 7. Market Share – Outside Monkayo Market

PROPOSED SLAUGHTER FEES

Proposed rate will remain the same from its existing rate based on Section 5G.08
of Municipal Tax Ordinance No. 2018-01 (The Revised Municipal Revenue Code of 2018).

Hogs

Slaughterhouse Services Current Rate Proposed Rate

Ante-mortem Php 15.00 Php 15.00

Post-mortem Php 15.00 Php 50.00

Corral Fee Php 15.00 Php 15.00

Table 8. Current and Proposed Rate for Slaughterhouse Services - Hogs

Cattle

Slaughterhouse Services Current Rate Proposed Rate

Ante-mortem Php 20.00 Php 20.00

Post-mortem Php 100.00 Php 100.00

Corral Fee Php 75.00 Php 75.00

Table 9. Current and Proposed Rate for Slaughterhouse Services - Cattle

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 Goat

Slaughterhouse Services Current Rate Proposed Rate

Ante-mortem Php 15.00 Php 15.00

Post-mortem Php 50.00 Php 50.00

Corral Fee Php 15.00 Php 15.00

Table 10. Current and Proposed Rate for Slaughterhouse Services - Goat

Projected Receipts from Slaughterhouse Operations

Projected Receipts are computed using projected demand of respective livestock

multiplied with its corresponding proposed rate of slaughterhouse services. Detailed

computation is shown in the appendices.

Year 1 Year 2 Year 3

Hogs Php 1,728,000 Php 1,728,000 Php 1,728,000

Cattle Php 28,080 Php 28,665 Php 29,250

Goat Php 19,200 Php 19,600 Php 20,080

Total Projected
Php 1,775,280 Php 1,776,265 Php 1,777,330
Receipts

Table 11. Total Projected Receipts from Slaughterhouse Operation

The current receipts of slaughterhouse have increased in to 100% through analyzing the

trend of its past three-year receipts of operation. In average, the recorded gross receipts of the

slaughterhouse operation is Php 519, 283.00 which will be doubled if the improvement project will

be implemented in to an average of Php 1,042,058; considering the increase of its service

capacity due to facilities improvement, additional staffing, and expansion of intended market

areas.

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PROJECT COST

Presented on the data below is the capital expenditure in carrying out the expansion of the

slaughterhouse. An engineer’s perspective of the proposed building is shown in appendices

including schedule of specifications for the fixtures and auxiliary equipment.

Building Php 12,995,000.00

Fixtures

Hog Line 942,340.00

Cattle Line 1,702,025.00

Equipment

Auxiliary Equipment 604,462.50

Total Project Cost Php 16,243,827.50

Government Grant – DA NMIS Php 8,121,913.75

LGU of Monkayo – Equity Php 8,121,913.75

Table 12. Slaughterhouse Improvement Project Cost

As per Joint DA-DILG-DBM Memorandum Circular No. 1 Series of 2006 Section VI Article 1

that the National Meat Inspection Services (NMIS) thru Local Government Units (LGUs) Meat

Establishment Improvement Program (MEIP) shall shoulder the 50% of total project cost of the

meat establishment. In the case of Monkayo Slaughterhouse Improvement Project the NMIS shall

cover Php 8,121,913.75 of the Total Project Cost of Php 16,243,827.50 and the half amount will

be shouldered by the Local Government Unit of Monkayo amounting to Php 8,121,913.75

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PROJECT IMPLEMENTATION SCHEDULE

The improvement project of the slaughterhouse aimed to commence its implementation in

Year 2022. Shown in table 13 is the schedule of quarterly implementation.

QUARTER QUARTER QUARTER QUARTER

ACTIVITIES
1 2 3 4

Pre-project Operation

Construction of Infrastructure

Procurement and Installation of Equipment

Organizing and Staffing

Training and Seminars

Enactment of Pertinent Municipal

Ordinance

Operation and Maintenance

Table 13. Project Implementation Schedule

BENEFECIARY

The joint DA-DILG-DBM Memorandum Circular No. 1 Series 2006 granted an opportunity

for the respective local government unit to receive a grant of 50% of the total project cost. Hence,

the Local Government of Monkayo took the opportunity to expand and improve the existing

slaughterhouse facility that will enhance the quality and safety of the meat products consumed by

the Monkayoans and residents of nearby municipalities. Moreover, the project proposal aims to

upgrade the services and expand the intended market area of the improved Monkayo

Slaughterhouse.

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 APPENDICES

APPENDIX A – Historical Demand, Projected Demand, and Projected Demand-Target

Capacity of Intended Market Area Outside Monkayo.

Historical Demand of Slaughterhouse Services – Outside Monkayo

The historical demand of slaughterhouse services for identified neighboring

municipalities is computed through estimating a portion of their population, multiplied by the 15

kg per capita which resulted to total consumption in kilogram. A 63 kg was estimated to be the

average dressed weight that will divide to the total consumption to identify the estimated number

of heads consumed by the intended market areas.

Estimated
Estimated
Market Areas Per Capita Total Average
Meat Number of
– Outside Consumption Consumption Dressed
Consumers Heads
Monkayo (kg) (kg) Weight per
Consumed
head (kg)

Montevista 27,702 15 415,530 63 6,596

Compostela 53,481 15 802,215 63 12,734

Trento 32,423 15 486,341 63 7,720

Table 14: Historical Demand of Slaughterhouse Services – Outside Monkayo

Projected Demand – Montevista

From the historical demand data, the projected demand was estimated with an 2.10% average

increase of estimated number of heads consumed meat in Montevista market.

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 Estimated Number of
Average Increase Projected Demand
Heads Consumed

Year 1 12,734 2.10% 13,001

Year 2 13,001 2.10% 13,274

Year 3 13,274 2.10% 13,553

Table 15: Three (3) Year Projected Demand – Montevista

Projected Demand – Compostela

From the historical demand data, the projected demand was estimated with an 2.10% average

increase of estimated number of heads consumed meat in Compostela market.

Estimated Number of
Heads Consumed
Average Increase Projected Demand

Year 1 6,596 2.10% 6,734

Year 2 6,734 2.10% 6,876

Year 3 6,876 2.10% 7,020

Table 16: Three (3) Year Projected Demand – Compostela

Projected Demand – Trento

From the historical demand data, the projected demand was estimated with an 2.10% average

increase of estimated number of heads consumed meat in Trento market.

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 Estimated Number of
Average Increase Projected Demand
Heads Consumed

Year 1 7,882 2.10% 4,186

Year 2 8,047 2.10% 4,351

Year 3 8,216 2.10% 4,520

Table 17: Three (3) Year Projected Demand – Trento

Projected Demand – Current Capacity Analysis: Montevista

The unsatisfied demand was computed slaughterhouse when projected demand

was analyzed to Montevista slaughterhouse current capacity of capacity of 10 heads/

day.

Unsatisfied
Projected Demand Current Capacity
Projected Demand

Year 1 6,734 3,360 3,374

Year 2 6,876 3,360 3,516

Year 3 7,020 3,360 3,660

Table 18: Three (3) Year Projected Demand – Current Capacity Analysis – Montevista

Projected Demand – Current Capacity Analysis: Compostela

Compostela slaughterhouse current capacity was 3,712 from its daily capacity of 17

heads/ day.

Unsatisfied
Projected Demand Current Capacity
Projected Demand

Year 1 13,001 5,712 7,289

Year 2 13,274 5,712 7,562

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 Year 3 13,553 5,712 7,841
Table 19: Three (3) Year Projected Demand – Current Capacity Analysis – Compostela

Projected Demand – Current Capacity Analysis: Trento

The unsatisfied demand of Montevista slaughterhouse when projected demand was

analyzed to Trento slaughterhouse current capacity was 3,696 from its daily capacity of

11 heads/ day.

Unsatisfied
Projected Demand Current Capacity
Projected Demand

Year 1 7,882 3,696 4,186

Year 2 8,047 3,696 4,351

Year 3 8,216 3,696 4,520

Table 20: Three (3) Year Projected Demand – Current Capacity Analysis – Trento

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 APPENDIX B – Projected Receipts of Slaughterhouse Operations

Projected Receipts – Hogs: Monkayo Market

The total projected receipts from slaughterhouse operation – hogs in Monkayo Market computed

from its Projected demand multiplied to rates proposed for Ante-Mortem, Post-Mortem, and Corral Fee;

Php 15.00, Php 50.00, and Php 15.00 respectively.

Projected
Ante- Post- Total Projected
Demand – Corral-Fee
Mortem Mortem Slaughter Fee -
Monkayo Market Php 15.00
Php 15.00 Php 50.00 Hogs
(Head)

Year 1 16,388 Php 245,820 Php 819,400 Php 245,820 Php 1,311,040

Year 2 16,732 Php 250,980 Php 836,600 Php 250,980 Php 1,338,560

Year 3 17,083 Php 256,245 Php 854,150 Php 256,245 Php 1,366,640

Table 21: Projected Receipts – Hogs: Monkayo Market

Projected Receipts – Hogs: Outside Monkayo

The total projected receipts from slaughterhouse operation – hogs in Outside Monkayo Market

computed from its Projected demand multiplied to rates proposed for Ante-Mortem, Post-Mortem, and

Corral Fee; Php 15.00, Php 50.00, and Php 15.00 respectively.

Projected
Demand – Ante- Post- Total Projected
Corral-Fee
Outside Monkayo Mortem Mortem Slaughter Fee -
Php 15.00
Market Php 15.00 Php 50.00 Hogs
(Head)

Year 1 5,212 Php 78,180 Php 260,600 Php 78,180 Php 416,960

Year 2 4,868 Php 73,020 Php 243,400 Php 73,020 Php 389,440

Year 3 4,517 Php 67,755 Php 225,850 Php 67,755 Php 361,360

Table 22: Projected Receipts – Hogs: Outside Monkayo

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Projected Receipts – Cattle

The total projected receipts from slaughterhouse operation – cattle computed from its Projected

demand – Monkayo multiplied to rates proposed for Ante-Mortem, Post-Mortem, and Corral Fee; Php 20.00,

Php 100.00, and Php 175.00 respectively. The 144 projected demand was estimated from three (3) cattles

in a week, a 50% of 331 live cattle data projected to have an average increase of 2.10%.

Ante- Post- Total Projected

Projected Corral-Fee
Mortem Mortem Slaughter Fee -
Demand (Head) Php 75.00
Php 20.00 Php 100.00 Cattle

Year 1 144 Php 2,880 Php 14,400 Php 10,800 Php 28,080

Year 2 147 Php 2,940 Php 14,700 Php 11,025 Php 28,665

Year 3 150 Php 3,000 Php 15,000 Php 11,250 Php 29,250

Table 23: Projected Receipts – Cattle

Projected Receipts – Goat

The total projected receipts from slaughterhouse operation – goat computed from its Projected

demand – Monkayo multiplied to rates proposed for Ante-Mortem, Post-Mortem, and Corral Fee; Php 15.00,

Php 50.00, and Php 15.00 respectively.

Ante- Post- Total Projected

Projected Corral-Fee
Mortem Mortem Slaughter Fee -
Demand (Head) Php 15.00
Php 15.00 Php 15.00 Goat

Year 1 240 Php 3,600 Php 12,000 Php 3,600 Php 19,200

Year 2 245 Php 3,675 Php 12,250 Php 3,675 Php 19,600

Year 3 251 Php 3,765 Php 12,550 Php 3,765 Php 20,080

Table 23: Projected Receipts – Goat

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 APPENDIX C – Engineer’s Building Perspective of Proposed Slaughterhouse
Improvement

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APPENDIX D – Schedule of Specifications for Fixtures and Equipment

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