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    IARPCoop CHICKEN-FARM-BUSINESS-PLAN r2

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    kingjam dimacaling2019
    This project proposal from the Ingud A Ranao Producer Cooperative requests PHP 663,244 to start a native chicken farm in Lanao del Sur, Philippines. The farm would house 180 chickens and is projected to earn a net income of PHP 2,018,790 in its first year, yielding a 129.37% return on investment. Native chicken farming provides livelihoods and is resilient to local conditions. This farm will sell chickens and eggs to meet consumer demand for organic meat and support food security in the region.

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    © All Rights Reserved
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    IARPCoop CHICKEN-FARM-BUSINESS-PLAN r2

    Uploaded by

    kingjam dimacaling2019
    97 views6 pages
    This project proposal from the Ingud A Ranao Producer Cooperative requests PHP 663,244 to start a native chicken farm in Lanao del Sur, Philippines. The farm would house 180 chickens and is projected to earn a net income of PHP 2,018,790 in its first year, yielding a 129.37% return on investment. Native chicken farming provides livelihoods and is resilient to local conditions. This farm will sell chickens and eggs to meet consumer demand for organic meat and support food security in the region.

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    This project proposal from the Ingud A Ranao Producer Cooperative requests PHP 663,244 to start a native chicken farm in Lanao del Sur, Philippines. The farm would house 180 chickens and is projected to earn a net income of PHP 2,018,790 in its first year, yielding a 129.37% return on investment. Native chicken farming provides livelihoods and is resilient to local conditions. This farm will sell chickens and eggs to meet consumer demand for organic meat and support food security in the region.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    97 views6 pages

    IARPCoop CHICKEN-FARM-BUSINESS-PLAN r2

    Uploaded by

    kingjam dimacaling2019
    This project proposal from the Ingud A Ranao Producer Cooperative requests PHP 663,244 to start a native chicken farm in Lanao del Sur, Philippines. The farm would house 180 chickens and is projected to earn a net income of PHP 2,018,790 in its first year, yielding a 129.37% return on investment. Native chicken farming provides livelihoods and is resilient to local conditions. This farm will sell chickens and eggs to meet consumer demand for organic meat and support food security in the region.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    INGUD A RANAO Producer Cooperative 2022

    PROJECT PROPOSAL

    Title of Project: Native Chicken Farming


    Project proponent: Ingud A Ranao Producer Cooperation
    Location of Project: Brgy. Bago-ingud, Saguiaran, Lanao Del Sur
    Amount Applied for: P 663,244.00

    1
    INGUD A RANAO Producer Cooperative 2022

     The Philippine native chicken is an important livestock resource. It provides livelihood in


    terms of additional income, food security, and opportunity to convert by-products into
    high value products.
     With its quality meat and distinct taste, native chicken has established a niche market and
    is seemingly unaffected by competitive markets. This makes native chicken production a
    top investment option for small and medium entrepreneurs.
     Resiliency is one of the important characteristics of native chicken making it a preferred
    business option. They are known for their adaptability to local agro-climatic conditions,
    hardiness and ability to utilize naturally-occurring feeds, farm by-products, and high
    tolerance to diseases. They require minimal care, technology, and financial inputs.
     Native chicken is generally perceived as free from antibiotics and other synthetic
    chemical residues. The global trend of shifting consumer preferences toward organic and
    naturally produced products in recent years justifies the premium price offered for native
    chicken. A similar trend is also observed in the Philippines wherein the volume of supply
    (e.g., 500 kg to 2 tons per month) required by institutional buyers has significantly
    increased.

    Market Potential

    Based on the record of Philippine Statistics Authority (PSA), the country's average annual
    inventory of native chicken increased by 3.1 percent from January 2020 to January 2021. It
    contributed to the total chicken population in the country, which is 12.86 million heads as of
    January 1, 2021. Similarly, there is a positive growth trend in Western Visayas Region and its
    provinces.

     As an important livestock resource and livelihood to about 2.5 million Filipinos,


    production of native chicken is a great investment.
     Native chicken has remained a dependable source of protein and nutritious food in poor
    and remote rural areas. Despite the popularity of broiler chicken in urban or urbanizing
    areas, native chicken remains a preferred alternative meat because of its eating quality
    (distinctively savory, lean and finely textured meat) and health benefits despite its
    premium price. It has created alternative or niche market especially for those who are
    health conscious.
    2
    INGUD A RANAO Producer Cooperative 2022

     The major markets of native chicken are individual household consumers, municipal and
    city-based restaurants, hotels and resorts. Most of the native chicken sold directly to
    household consumers are in live form particularly in the municipalities. Domestic
    markets of dressed native chicken are found in supermarkets and municipal or city public
    "wet" markets. Major buyers of dressed native chicken are the Institutional buyers
    (restaurants, hotels and resorts and hospitals).

    SUMMARY OF 180 HEADS-FARM OPERATION AVERAGE COST AND


    RETURNS

    Particulars

    Gross Sales (Php) 3,723,525.00

    Total Operating Cost (Php) 1,704,734.80

    Net Income before tax (Php) 2,018,790.20

    Total Investment Cost (Php) 663,244.00

    Return on Investment (%) 129.37

    Selling Price of RT L (Ready-to-Lay) Pullet (Php/head) 600.00

    3
    INGUD A RANAO Producer Cooperative 2022

    CAPITAL INVESTMENT AND ANNUAL COST AND RETURN ANALYSIS, 2020

    CAPITAL INVESTMENT

    ITEM AMOUNT Php

    Chicken house (approximately 120 sq. m) 30,000.00

    Enclosure net (approximately 8 rolls at P 1,800.00/roll) 14,400.00

    Foundation stock

    30 cocks at P700.00/each (P21,000.00)

    150 RTL pullets at P600.00 each (P90,000.00) 111,000.00

    Incubator 35,000.00

    Brooding equipment 8,000.00

    Initial working capital 464,844.00

    Total Investment Cost 663,244.00

    COST AND RETURNS ANALYSIS

    GROSS SALES

    Native Chicken (6,412.5 kgsat180/kg) 3,655,125.00

    Eggs (1,900 at P10.00/egg) 68,400.00

    3,723,525.00

    Operating Expenses

    Feed ( 16,212 heads at 10 gram/heads; p 22.50/kg for 364 days 1,327,762.80

    Labor

    4
    INGUD A RANAO Producer Cooperative 2022

    ( 1 retainer/veterinarian at 2500/month) 30,000.00

    ( 3 farm aide/worker at P 351/day: 7,722/month) 277,992.00

    Power & Water ( Lump at P 1,500.00/month) 18,000.00

    Depreciation Expenses (see table below under assumptions.) 50,980.00

    1,704,734.80

    Net Income before tax 2,018,790.20

    Basic Assumptions:

    a. The foundation stocks of 150 pullets are 4-5 months old and are all ready to lay (RTL),
    cocks as well are ready to breed.

    b. The initial working capital is good for 4 months’ operation.

    c. The farm gate price of live native chicken is P190/ kilogram.

    d. The average live weight of the chicken at the market shall be at 1.2 kilograms at 4 months
    old.

    e. Each hen will lay an average of 150 eggs annually. Only 75% (112 eggs) from each hen
    will be hatched from which 95% (106 pcs) will reach the market. The remaining 25% (38
    pcs) eggs per hen shall be sold as table egg. Price shall be at P12.00 each at farm gate
    prices.

    f. For purposes of analysis, supplemental feed to be used is 50:50 of commercial feeds and
    local feed resources (i.e., rice bran) P22.50 per kilogram. Supplemental feeding shall be
    placed at an average of 10 grams per chicken daily. (Dr. Rene Santiago, Agricultural
    Center Chief IV, National Swine and Poultry Research and Development Center-Bureau
    of Animal Industry)

    g. Labor cost vary depending on the location or regions.


    5
    INGUD A RANAO Producer Cooperative 2022

    h. Depreciation schedule (in PhP):

    Chicken house (approximately 120 SQ. m.) 30,000.00 5 6,000.00

    Enclosure net (approximately 8 rolls) 14,400.00 5 2,880.00

    Foundation stock

    150 RTL oullets at P600.00 each 90,000.00 3 30,000.00

    10 cocks at P700.00 each 21,000.00 3 7,000.00

    Incubator 35,000.00 10 3,500.00

    Brooding equipment 8,000.00 5 1,600.00

    Annual Depreciation Cost 50,980.00

    CONCLUSION

    From the above business plan, it is clear that poultry farming is viable and feasible in Lanao del
    sur and even Philippine at large and it is also beneficial to the whole world at large.

    JAMALODIN B. DIMACALING
    Chairperson

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