Republic of the Philippines

PAMPANGA STATE AGRICULTURAL UNIVERSITY

Magalang, Pampanga
COLLEGE OF AGRICULTURE SYSTEMS AND TECHNOLOGY
Department of Agricultural Business and Economics & Entrepreneurship

FEASIBILITY STUDY ON LIVESTOCK-BASED FARMING SYSTEM (SHEEP)

Submitted by:
David, Ivan Justin
Gamboa, Christian John
Lucar, Mary Rose
Napo, Ingrid Marie
Ortega, Jenalyn
Quiambao, Ray Charles

Submitted to:
Prof. Abner Quiambao
 MARKET STUDY
I. INTRODUCTION
A. Business Name
The business is named “Friesian Essentials”—this is derived from the name of the East
Friesian sheep breed, which is well known for producing mlik, and the word "essentials" because
the goods that the entrepreneur are making are a must for us. The enterprise's main production
lines will be meat, milk, and sheep breeding. The entrepreneur will create milk soap and cheese
from the sheep's milk, both of which are new products. There are six business partners in the
corporation, which is a manufacturing company, and the company will manufacture the products
from beginning.
Business Logo and Tagline

The tagline, "Now, let the sheep lead" was created by the entrepreneur since sheep always follow
their shepherd, as we all know. The sheep's products in this industry wish to earn your trust and
will guide you to healthful meals and necessities.
Vision
To be a leading provider of high-quality, sustainable milk-based products derived from sheep's
milk, known for their natural goodness and contribution to overall well-being.
Mission
Aims to produce premium milk soap and milk cheese from sheep's milk using sustainable
and ethical practices, ensuring customer satisfaction by embodying the purity and nourishing
benefits of sheep's milk, while promoting innovation, education, and community engagement.
 Goals
Product Excellence:
Develop a diverse range of milk soap and milk cheese products that cater to various consumer
preferences.
Attain certifications and recognition for the high quality and safety standards of our products.
Sustainable Practices:
Implement sustainable farming practices, minimizing our environmental footprint and ensuring
the well-being of our sheep.
Market Expansion:
Establish a strong presence in local markets and expand our reach to national and international
markets.
Collaborate with distributors and retailers to increase product accessibility.
Objectives
Yearly Revenue Growth:
Achieve a 20% increase in annual revenue by expanding product offerings and market reach.
Customer Base Expansion:
Increase customer base by 15% annually through targeted marketing strategies and customer
retention programs.
Sustainability Milestones:
Reduce water usage by 10% and implement renewable energy sources for 20% of our operations
within the next two years.
Community Engagement:
Partner with local schools to educate students about the benefits of sheep's milk and dairy
products.
Research and Development:
Invest 10% of our annual budget in research and development to continually enhance product
quality, flavors, and formulations.
 B. Location
The firm’s main location is at Cuyapo, Nueva Ecija, Philippines.

Demographic Profile
An administrative region in the Philippines, Central Luzon, or Region III, is located in
the centre of the island of Luzon. It includes 2 very urbanised cities in addition to the 7 provinces
of Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, and Zambales. The City of San
Fernando serves as the regional hub.
12,422,172 people were counted there in the 2020 Census. This amounted to 11.39% of
the total population of the Philippines or 19.97% of the population of the Luzon island chain.
According to these numbers, the population density is calculated to be 567 people per square
kilometre, or 1,469 people per square mile.
C. Feasibility Criteria
The project will necessitate a number of market demands and customer consumptions.
We will sell the sheep's meat or engage in breeding when the time comes when they are
unable to produce milk. Apples, bananas, and other complementing products are also available
for sale.
 D. Highlight Of The Project
Due to the vast disparities in management techniques, each operation will incur different
expenditures when starting and running a sheep farm. Decisions like when to lamb, the type of
fencing to use, how to protect the flock from predators, and how much grass and grain to feed the
flock are all examples of management practises.
The increased demand for goat milk soap on internet marketplaces served as inspiration for
the organization's entrepreneurs. They want to demonstrate the potential market for sheep and
other products that can be produced by sheep, such as milk soap and milk cheese, which are
innovative on the market and may substitute for goat commodities, through the influencers who
sell and affiliate the soap milks in e-commerce sites like TikTok, Shopee, and Lazada.

Introduction
For human consumption, milk and meat are produced using livestock farming systems.
As the most productive elite animals are mated to create the next generation, livestock
production is always evolving. The livestock-based farming system is a significant area of
agriculture, particularly in China. 40% of all peasant income comes from the production of
livestock, and its value as a percentage of total agricultural production has climbed from 18% in
1980 to 37% in 2006 (Wuerthner, 2020).
Two of the most significant subsectors in the Philippine agriculture sector are livestock
and poultry.
Similar to goat farming, sheep farming in the Philippines can be lucrative. Sheep produce
meat, fleece, skin, and milk, which all contribute to food production, rural employment, and the
GDP.
The ewes in accelerated lambing give birth three times every two years, or 1.5 times per
ewe each year, on an 8-month cycle. By increasing overall production, decreasing fixed expenses
each lambing, and marketing throughout the year, a producer who lambs more frequently can
enhance revenue.
Raising sheep has multiple purposes because you can get milk, meat, and wool.
Additionally, because they are unsensitive, you can rear them with other cattle. You can fertilise
crops or utilise sheep excrement as livestock feed.
Domestic sheep are used to produce sheep milk, also referred to as ewe's milk. However,
a few specialised breeds are only used for commercial dairy products due to their higher yield
and longer breastfeeding time. Many sheep breeds are farmed for their wool and are
subsequently used for meat and milk. Sheep milk has been used since the beginning of time since
it is highly digestible and accepted by the human digestive system. It is additionally regarded as
a nutritious substitute for cow and goat milk due to its resistance to certain diseases and
antiallergenic qualities.
 II. GENERAL BUSINESS CONDITION
A. Features of the Products
a.1. Physical Properties
Products Description
Sheep The sheep is typically stockier than the goat (genus Capra),
has more divergent horns when present, smell glands in its
face and rear feet, and lacks the goat's beard in the males.
Typically, sheep have short tails.
Sheep Milk Sheep milk is superior to cow milk in terms of total solids,
refractive index, titratable acidity, and freezing point as
well as higher specific gravity, viscosity, refractive index,
titratable acidity, and lower freezing point (6). In sheep
milk, there are 65% less fat globules larger than 3 μm.
Bananas Aspect ratio, radius of curvature, and sphericity were
discovered to be 39.60%, 0.27, and 186.49, respectively. It
was discovered that the elongation and flakiness ratios
were 3.77 and 0.88, respectively. It was determined from
measured physical characteristics that banana fruit is
curved, non-spherical, and elongated in shape.
Grapes The grape is typically a woody vine that climbs using
tendrils (modified branches) and can grow to be at least 17
metres (56 feet) long when untrained. The alternating,
palmately lobed, and always tooth-edged leaves are tasty.
Before the fruit, which ranges in colour from virtually
black to green, scarlet, and amber, there are small greenish
flowers in clusters. Botanically speaking, the fruit is a
berry that is more or less spherical and contains the seeds
within its luscious flesh. The fruit often develops a bloom,
which is a whitish powdery covering.
Oranges The bulk density and porosity were 0.49 g cm-3 and
49.14%, respectively, while the fruit density and pitted
fruit density were determined at 0.97 and 1.18 g cm-3. The
measurements for the geometric mean diameter, sphericity,
and surface area were 22.38 mm, 0.63, and 1577.84 mm2,
respectively.
Watermelon It is 92% water, green, oval-shaped, about 6 1/2 inches
long, solid, smooth, high density, sweet-tasting, and has a
crimson centre.
a.2. Chemical Properties

Sheep
Properties Amount (grams)
Calories 258 (kcal)
Protein 25.6
Fats 0
Vitamins 0
Minerals 0
Water 0.02
2

Sheep Milk
Properties Amount (grams)
Vitamin A 83
B Carotene 0.2
Vitamin D 0.18 – 0.88
Vitamin E 120
Vitamin C 4700
Thiamin 85
Riboflavin 330
Vitamin B6 83
Vitamin B12 0.6
Nicotinic acid 428
Pantothenic acid 464
Biotin 2.6
Folic acid 5.6

Banana
Properties Amount (grams)
Calories 110 (kcal)
Protein 1
Fiber 3
Carbohydrates 28
Sugar 15
Vitamin 0.4
 Grape
Properties Amount (grams)
Calories 104 (kcal)
Protein 1.1
Fiber 1.4
Carbohydrates 27.3
Sugar 24.4
Vitamin 0.005

Orange
Properties Amount (grams)
Calories 73 (kcal)
Protein 1.3
Fiber 2.8
Carbohydrates 16.5
Sugar 12
Vitamin 0.4

Watermelon
Properties Amount (grams)
Calories 30
Protein 0.06
Fiber 0.04
Carbohydrates 7.6
Sugar 6.2
Water 0.01

a.c. Agronomic Propeties

The agricultural activities on the farm involve preparing the land, getting sheep, keeping
the temperature in the sheep's shelter, getting supplementary items, planting, and irrigation.
B. Uses of the Product
 Products Uses
Sheep Wools are for furnitures, leather products, clothes or even
sheets and mattress

Make any dish out of its meat

Sheep Milk Makes a good soap and cheese

Great partner with drinks and soups

Bananas Consume as it is

Flavor to food

Additional dressing to food

Banana blossom can be additional ingredient to dish

Grapes Make wine

Consume as it is
Oranges Use to make natural citrus juice

Consume as it is
Watermelon Perfect for appetizer such as; ice cream

Consume as it is

C. Prevailing Prices of the Product

c.1. Milk Soap (finished product)
The different raw materials used in addition to soap affect the pricing of the finished
goods.
c.2. Milk Cheese (finished product)
The different raw materials used in addition to cheese affect the pricing of the finished
goods.
 D. Major Producers
Products Producers
Sheep Central Luzon (Region III)
Ilocos Region (I)
Davao Region (XI)
Cagayan Valley (Region II)
Northern Mindanao (X)
Sheep Milk Central Luzon (Region III)
Ilocos Region (I)
Davao Region (XI)
Cagayan Valley (Region II)
Northern Mindanao (X)
Bananas Davao Region
Grapes Arevap
Iloilo
La Union
Cebu
Oranges Nueva Vizcaya
Watermelon Pangasinan
Ilocos Norte
Ilocos Sur
La Union

E. Quality of the Products

e.1. Milk Soap
Friesian Essentials will provide items that are high in quality and nutrition. The product
will have a smooth texture, an inviting smell, and an affordable pricing.
e.2 Milk Cheese
Friesian Essentials will provide items that are high in quality and nutrition.
 III. COMPETITIVE CONDITIONS

A. SCOT ANALYSIS
Strengths
High-Quality Products: Sheep's milk is known for its rich and creamy texture, making it ideal for
producing high-quality soap and cheese, appealing to customers seeking premium products.
Health Benefits: Sheep's milk is often considered a healthier alternative to cow's milk, being rich
in essential nutrients and minerals. This can be marketed as a health benefit for consumers.
Niche Market: Sheep milk-based soap and cheese cater to a niche market, allowing for a focused
marketing approach and potential for brand loyalty among certain consumer groups.
Sustainability: Sheep farming for milk is often considered more sustainable than larger dairy
operations due to the lower environmental impact and resource requirements.
Weaknesses
Limited Production Scale: Compared to cow's milk, sheep's milk production is generally lower,
limiting the scale of production for soap and cheese, potentially restricting market reach and
profitability.
Perishability: Sheep's milk and derived products like cheese have a shorter shelf life compared to
some other dairy products, requiring efficient logistics and distribution strategies to minimize
waste.
Opportunities
Market Expansion: Expanding the product line to include variations of soap (e.g., organic,
scented) and different types of cheese (e.g., aged, flavored) can attract a broader customer base
and increase sales.
Health and Wellness Trends: Capitalize on the growing health and wellness trends by
emphasizing the nutritional benefits of sheep's milk in marketing and positioning the products as
natural and beneficial for skincare and diet.
Partnerships and Collaborations: Collaborating with local farmers, artisans, or health stores to
distribute and promote products can enhance brand visibility and accessibility.
Threats
Competition: Competition from established dairy and skincare companies can pose a threat,
necessitating a strong branding strategy and unique value proposition to stand out in the market.
Regulatory Compliance: Adhering to strict regulatory standards for dairy and skincare products
can be a challenge and non-compliance may lead to legal issues or market withdrawal.
Supply Chain Disruptions: Disruptions in the supply chain, including feed availability, adverse
weather conditions affecting sheep health, or transportation issues, can impact production and
timely delivery to customers.

CONCLUSION
It's essential for the business to leverage strengths and opportunities while addressing
weaknesses and mitigating threats to succeed and grow in this industry.

IV. MARKET RESEARCH RESULTS

Each year, the dairy business generates more than $1 billion in revenue. Around 7% of the
cattle and dairy products imported by the Philippines come from Australia; this percentage is
likely to increase as more cheese, butter, and other dairy spreads are imported.
There are two primary sectors on dairy farms:the first industry is a powder-based one that
imports, packs, and reprocesses goods. Sector 2, fresh milk produced locally and imported is
used in the liquid milk market. More than 80% of imported milk products come from the powder
industry. Liquid milk imports rose by 21% in 2019 over the previous year, (Philippine Dairy
Industry Grows, 2020).
In 2023, the Milk market will generate US$3.0 billion in revenue. The market is anticipated
to expand by 9.77% yearly (CAGR 2023-2028). In terms of worldwide comparison, India will
create the largest revenue ($66 billion in 2023). In 2023, per-person revenues of US$26.62 are
produced based on population statistics.
By 2028, volume in the milk market is anticipated to reach 1.7 billion kg. 5.3% volume
growth is predicted for the milk market in 2024. In 2023, it is anticipated that the Milk market
would have a volume per person of 11.6 kg.

Source: https://www.statista.com/outlook/cmo/food/dairy-products-eggs/milk/
philippines#volume
 A. Market Survey
CONSUMERS

Angeles Santa Rita Location

1% 0%
Tarlac Isabela
Guagua Bulacan
Santa Ana Mexico 0% 5% 0% 0% Arayat
0% 0% 16%
Apalit
1%
San Fernando Mabalacat
0% 5%
Masantol
0%

Magalang
68%
RETAILERS
Variety: sheep
Description: Sheep are domesticated animals
commonly found on farms, valued for their
wool, meat, and sometimes milk.
Days of maturity: Sheep typically reach V. 7 C’s
maturity at around 6 to 12 months of age.
COMMODITIES
Shelter: Sheep shelter is crucial for protecting
sheep from harsh weather conditions.

Variety: Sheep meat

Description: Sheep meat, commonly known
as lamb when young and mutton when
mature, offers a succulent, mildly sweet taste
with a tender, juicy quality. Its versatility
shines in various global cuisines, whether
grilled to perfection, slow-cooked in rich
curries, or featured in traditional
Mediterranean dishes like kebabs and gyros.
Benefit: Sheep meat is a rich source of high-
quality protein, essential nutrients like iron,
zinc, and vitamin B12, making it a nutritious
choice to support muscle health and overall
well-being. Additionally, its relatively low fat
content compared to other meats can
contribute to a balanced diet and help manage
cholesterol levels when prepared lean.

Variety: Sheep milk soap

Description: Sh eep milk soap is a nourishing
and gentle skincare product made from
creamy sheep's milk, known for its
moisturizing properties, leaving your skin soft
and rejuvenated.
Benefits: Milk soap can provide skin with
moisture, vitamins, and proteins, potentially
resulting in softer more nourished skin.

Variety: Sheep milk cheese

Description: Sheep milk cheese is known for
its creamy texture and distinct, rich flavor, COMPLEMENTARY
often characterized by a slightly tangy and
nutty taste profile.
Benefits: Sheep milk cheese is a good source
of essential nutrients like calcium, protein,
and vitamins (e.g., B12), as well as minerals
such as zinc an d phosphorus. Health benefits
of sheep milk and its products may have
health benefits, including potential anti-
inflammatory properties and support for bone
health.
Variety: banana
Description: Banana is one of the most
popular fruits and a great snack choice packed
with potassium, fiber, vitamins, and various
antioxidants.
Days of maturity: 11-14 months
Soil requirements: Bananas thrive in well-
draining, fertile soil with a pH level of around
5.5 to 6.5, rich in organic matter and with
good water retention properties.

Variety: grapes
Description: Grape is definitely one of the
fruit types they are recommended to eat. It’s
highly beneficial for their health, plus a super-
tasty treat they will enjoy.
Days of maturity: 40-70 days
Soil requirements: Grapes prefer well-draining
soil with a pH level between 6.0 and 6.5, good
air circulation, and adequate organic matter to
support healthy growth and fruit production.

Variety: oranges
Description: Oranges do have a specific taste,
but they are packed with plenty of valuable
vitamins and other nutrients important for
good digestion and maintaining he alth.
Days of maturity: 6-12 months orange. Heavy
soils, if well drained, yield good crops but
cultivation becomes difficult.

Variety: watermelon
Description: Watermelon is a great refreshing
treat both for us and animals that are likely to
eat it.
Days of maturity: 80-100 days
Soil requirements: Watermelons grow best on
sandy loam soils, with good drainage and a
slightly acid pH.
Soil requirements: Deep well drained loamy
soils are the best for the cultivation of sweet
COST
MILK SOAP
Ingredients Qty Unit Cost Cost Per Unit

Lye 121.91 grams ₱ 18.29 ₱ 0.91

Milk 6.93 grams 5.90 0.30

Olive Oil 145.15 grams 157.96 7.89

Coconut Oil 52.74 grams 34.81 1.74

Castor Oil 6.59 grams 12.81 0.60

Total 11.44

MILK CHEESE
Ingredients Qty Unit Cost Cost Per Unit

Milk 3331 grams ₱ 0.15 ₱ 0.15

Vinegar 119 grams 34 34

Salt 11.8 grams 1.77 1.77

Total 35.92

Sheep Meat
 Price
kg ₱ 180.00
lb 80.00

Sheep
Price
Female ₱ 8,000.00
Dairy 6,500.00
Male 6,000.00
Kid 3,500.00

Grape
Price
kg ₱ 150.00
lb 70.00

Orange
Price
kg ₱ 50.00
lb 20.00

Watermelon
Price
kg ₱200.00
lb 95.00

Product Price

Product Selling Price

Mlik Soap ₱ 20.00

Milk Cheese 45.00

Mark-up

Product Selling Price Cost per Mark-up Price Mark-up

 per Unit Unit Rate (%)

Mlik Soap 20.00 11.44 8.56 72.83%

Milk Cheese 45.00 35.92 9.08 25.28%

CUSTOMER
Who are your target consumers?
The entrepreneurs target consumers are the students, workers, teenagers, unemployed,
and adults from Central Luzon (Region III).
Location of your target consumers?
Location of the entrepreneurs’ target consumers is inside and outside of Central Luzon
(Region III).

CHANNELS OF DISTRIBUTION

Magalang

Online
Nueva Ecija

Friesian
Other parts of Essentials
Central Arayat
Luzon

City of San
Fernando Angeles City
 The enterprise will sell its goods at Pampanga's mini stores, and markets. Of the total
amount produced, 15% will be distributed to Magalang, 20% to Nueva Ecija and Arayat 20% to
Angeles City, 25% to City of San Fernando, 10% to other parts of Central Luzon, and the
remaining 10% will be sold to online.

CIRCUMSTANCES
WEATHER
One of the entrepreneurs major issues is the weather, which has a direct impact on their
operation.
RAPID INFLATION
Rising product prices will hurt entrepreneurs since they would have little choice but to
raise the prices of their commodities. It will also be detrimental to both consumers and
businesses.

COMMUNICATION
The entrepreneurs ways of communication are through social media, word of mouth,
friends and relatives, and market survey.
COMPETITORS
DIRECT COMPETITORS

INDERICT COMPETITORS
VI. Advertising and Promotion
 The entrepreneurs will use social media and tarpaulins to advertise and promotr the
business for them to reach wider scope of the market.

VII. Sales and Distribution Plan

A. Friesian Essentials Selling Process
The enterprise will have a straightforward selling structure. To ensure that the products are
undamaged and in good condition, it will bring them directly to the distributors and resellers.
There would be no middlemen involved in the selling process to optimize the firm's profit.

Friesian Essentials

FE’s Delivery Truck or

Van

Mini Store, Supermarkets,

Public Markets, Pharmacy

B. Transportation
 The firm will distribute the products to shops and other partners using a cargo truck and
van.

C. Terms of Sale
The company will deliver the bulk goods using delivery trucks and vans because it will
be selling to markets and shops. Additionally, they have the option of picking up the goods
straight from the business. In terms of payment methods, the business accepts both credit
cards and cash.
D. Population Census
Name Type Population Population Annual Brgy count
(2020) (2015) Population
Growth Rate
(2015-2020)
Apalit municipality 117,160 107,965 1.74% 12
Arayat municipality 144,875 133,492 1.74% 30
Bacolor municipality 48,066 39,460 4.24% 21
Candaba municipality 119,497 111,586 1.45% 33
Floridablanca municipality 135,542 125,163 1.69% 33
Guagua municipality 128,893 117,430 1.98% 31
Lubao municipality 173,502 160,838 1.61% 44
Mabalacat city (CC) 293,244 250,799 3.35% 27
Macabebe municipality 78,151 75,850 0.63% 25
Magalang municipality 124,188 113,147 1.98% 27
Masantol municipality 57,990 57,063 0.34% 26
Mexico municipality 173,403 154,624 2.44% 43
Minalin municipality 48,380 47,713 0.29% 15
Porac municipality 140,751 124,381 2.64% 29
San city (CC), capital, 354,666 306,659 3.11% 35
Fernando regional center
San Luis municipality 58,551 54,106 1.68% 17
San Simon municipality 59,182 53,198 2.27% 14
Santa Ana municipality 61,537 55,178 2.32% 14
Santa Rita municipality 48,209 40,979 3.48% 10
Santo Tomas municipality 42,846 40,475 1.21% 7
Sasmuan municipality 29,076 28,004 0.79% 12
Pampanga Total 2,437,709 2,198,110 2.20% 505

E. Income Classification
No. of Brgy Urbanization Status Income Classification
Municipality/City
Magalang 27 partly urban 1st class municipality
Arayat 30 partly urban 1st class municipality
Apalit 12 partly urban 1st class municipality
Mabalacat 27 Urban 3rd class component city
Angeles City 33 Urban 1st class highly urbanized city
City of Sanfernando 35 Urban 1st class highly urbanized city

F. Age Group
Age group Population (2015) Age group percentage
Under 1 47,747 1.83%
1 to 4 199,369 7.64%
5 to 9 254,564 9.75%
10 to 14 259,799 9.95%
15 to 19 262,626 10.06%
20 to 24 251,347 9.63%
25 to 29 226,644 8.68%
30 to 34 199,741 7.65%
35 to 39 187,720 7.19%
40 to 44 160,369 6.15%
45 to 49 147,081 5.64%
50 to 54 119,283 4.57%
55 to 59 93,816 3.59%
60 to 64 72,801 2.79%
65 to 69 53,588 2.05%
70 to 74 30,384 1.16%
75 to 79 22,463 0.86%
80 and over 20,402 0.78%
Total 2,609,744 100.00%
Youth Dependency Ratio: 44.24
Old Age Dependency Ratio: 7.37
Total Dependency Ratio: 51.61
Median Age: 25.65
 VIII. Other Related Aspects
A. Raw Materials Procurement
The water source for irrigation and upkeep of the company's water cycle will be the Cuyapo
Water District, which is located in Cuyapo, Nueva Ecija.
Due to its high production, Ormoc City, Leyte produces the best Friesian sheep. The
business will create top-notch sheep-related products.
Seeds for complementary from Saje Fruits & Banana located at San Simon Pampanga.

B. Packaging Materials
Friesian Essentials will use paper box for packaging in delivering of the product.

For Milk Soap, the firm will use a paper packaging to wrap the body of the item.

For the Milk Cheese, the firm will use a box packaging to keep the temparature and
humidity of the cheese.
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