Feas - Study CHap1-4
Feas - Study CHap1-4
Feas - Study CHap1-4
A Feasibility Study
In Partial Fulfillment of
Submitted To:
Proponents:
Joamy A. Abella
Jefrey M. Butil
Jay C. Cathedrilla
Johnrey D. Vallente
CHAPTER I
Introduction
A. General
With expanding population and market demands for local produce, layer chicken egg
farming emerges as a promising venture for a small scale and even backyard farming,
combining relatively low startup costs with the high upside potential for return of profits.
investments, a layer chicken egg farm allows aspiring entrepreneurs to enter the industry with
a minimal amount of budget. Hence the study seeks to explore the use of agricultural
a Non-Disruptive Layer Chicken Egg Farming which aims to make an explicit upside
potential of the profitability of layer chicken egg farming, highlighting its financial
accessibility and the avenues through which even a small investment can have a flourishing
enterprise.
Aside from one of the remarkable aspects of layer chicken egg farming which is its
and important role in this context, offering innovative solutions that optimize the
construction of chicken coops, making them cost-effective yet efficient and the modern
equipment such as automated feeders and waterers, further reducing the overall startup costs.
The integration of engineering expertise ensures that the infrastructure is designed for
entrepreneurs to start with a small flock or group of layer chickens and gradually expand as
the business gains traction. This feature is particularly advantageous for those with limited
capital, as it enables them to initiate operations on a manageable scale. With careful planning
and strategic growth, a small investment in the initial phase can pave the way for the gradual
expansion of the layer chicken flock, aligning with the financial capacities and risk tolerance
of the entrepreneur.
The prolific nature of layer hens in egg production contributes to a rapid return on
investment since hens typically start laying eggs at a young age, and with proper care and
witness a steady influx of eggs and revenue relatively soon after commencing operations,
investment piques as main interest for a compelling aspect that adds to the financial
Beyond the primary revenue generated from egg sales, layer chicken egg farming
offers opportunities for diversification. The sale of surplus birds, organic fertilizers produced
from chicken manure, and potential partnerships with local markets or restaurants further
contribute to income streams. This multifaceted approach to revenue generation enhances the
overall financial resilience of the layer chicken egg farming enterprise, making it a dynamic
1. Assess the market demand for locally produced layer chicken eggs.
2. Evaluate the technical and operational feasibility of setting up a layer chicken egg farm.
3. Analyze the economic viability and potential profitability of the proposed venture.
The significance of the Non-Disruptive Layer Chicken Egg Farming is primarily linked to a
of engineering concepts can equip entrepreneurs with the capacity to design and implement
cost-effective solutions. This knowledge extends beyond the specific requirements of layer
chicken egg farming, encompassing broader agricultural engineering principles that can be
applied to address challenges and optimize processes across various farming endeavors. The
the efficiency, sustainability, and profitability of layer chicken egg farming and agribusiness
as a whole.
This feasibility study seeks to thoroughly evaluate the viability of starting a layer
chicken egg production business, diving into the technical issues along with essential
methods will be used to assess local and regional demand for fresh eggs, including
parameters such as market elasticity and demand elasticity. Consumer preferences and the
influence of variables such as income levels will be examined in order to identify
prospective market niches, establishing the groundwork for strategic market positioning.
From a technical point of view, this study will look at poultry health parameters,
such as sanitation levels, FCR (Feed Conversion Ratio), and mortality rates, to determine
the viability of the proposed layer chicken egg production method. Soil and land quality will
be assessed using tests for characteristics such as pH, nutrient content, and water
accessibility. GIS (Geographic Information System) technologies will be used to identify the
best areas for chicken production while taking into account geographical features and
planning rules. Economic feasibility will be examined using financial indicators such as net
present value (NPV), internal rate of return (IRR), and payback periods.
When assessing risks, probabilistic risk analysis methods such as Monte Carlo
Weaknesses, Opportunities, Threats) analysis, important risk factors ranging from disease
outbreaks to market volatility will be identified, and mitigation measures based on adaptive
management concepts will be suggested. The study concludes by integrating these technical
looking to start a sustainable and technologically advanced layer chicken egg producing
business.
CHAPTER II
The poultry industry includes a vast range of bird species cultivated in nations across
the world. Domesticated animals that are primarily raised for meat or eggs include chickens,
ducks, turkeys, geese, quail, and guinea fowl, among others. This plan of action focuses on
parent birds. These flocks are housed on specialized farms and managed on an all-out basis.
The breeding flocks are likewise operated as all-out farms, but on separate dedicated farms.
The slaughter generation birds, such as broilers or replacement pullets, are then sold to
contract growers or commercial egg laying farms. Broiler farms are similarly managed on
an all-in-all-out basis, although the bulk of commercial egg layers use multiage production
systems.
The Philippine Statistics Authority classifies layer farms under two types: backyard
and commercial. Backyard farming refers to any poultry farm home, whether farming or
non-farming, that has at least one bird and up to 250. On the other hand, the definition of
independent, and integrator commercial farms. Semi-commercial farms are ones having
fewer than 5,000 layers. These farms mostly employ commercial feed. Layer homes are
open-sided and may be composed of wood and bamboo, or as a stand-alone cage structure.
Semi-commercial farms often have business permits or barangay registration. It may not
Independent commercial farms raise 5,001 or more birds and employ both external
and internal feeds (own feed formulation). Layer housing is either traditional open-sided,
like small-scale farms, or semi-automated, which is built of steel, raised, and open-sided.
These farms possess business licenses and farm records. Some secure ECCs and adhere to
labor norms.
Small holder or Egg Backyard enterprises are used for self-consumption as well as
selling extras in the neighborhood to supplement the family income. Commercial farms sell
table eggs to the public wholesale and/or retail. Viajeros, or Department of Trade and
Industry registered merchants, are those who have filed for a transport carrier license with
the Department of Agriculture. They frequently distribute to wet markets and egg users in
the food processing, food service, hotel, and restaurant industries. Big wholesale purchasers
are egg merchants that have huge warehouses in major demand locations to assist delivery
agriculture, is a dynamic and sustainable way to supply the growing need for high-quality
eggs. Globally, customers are increasingly valuing locally sourced, fresh, and ethically
produced food, making layer chicken egg production an important factor in the changing
agricultural environment. This industry is principally concerned with the cultivation of layer
hens, who are specialized for productive egg production, hence increasing the supply of a
with little initial operating costs, making them particularly appealing to prospective
entrepreneurs. Layer chicken egg farming is accessible and profitable due to minimal entry
requirements and a quick return on investment and the business's fundamental stability
allows for gradual expansion as earnings build, providing an accessible road for people of
The field of agricultural engineering adds a profound feature to layer chicken egg
farming by allowing profit maximization through a variety of methods. The design and
insulation contribute to optimal conditions for layer hens, increasing egg output. The
knowledge, enables data-driven decision making. This involves monitoring the layer flock's
health and nutrition, changing feeding schedules for optimal egg production, and
developments not only improve operations but also increase the overall profitability of the
activity and its profitability correlates to the availability of layer hens, sustainability of
with fundamental information and modern technology, could start on this road towards
helping to sustain the local food supply but also engaging in a sustainable and successful
agricultural enterprise.
CHAPTER III
Market Survey
Philippines. In 2021, the country’s total egg production was registered at 661.39 thousand
metric tons, a 9.2% increase from the previous year (Philippine Statistics Authority, 2021).
The demand for eggs in the Davao region is high, as eggs are one of the most consumed
animal products.
supply side, several suppliers operate in the Davao region and Digos City, including Berde
Crates Egg Supply (Berde Crates Egg Supply, n.d.), Davao Eggs Wholesale and Retail
(Davao Eggs Wholesale and Retail, n.d.), DAVAO EGG SUPPLIER/Wholesale and Retail
(DAVAO EGG SUPPLIER/Wholesale and Retail, n.d.), and JEWM Eggs in Davao City
(JEWM Eggs, n.d.), and Eggs wholesale and retail Digos City (Eggs wholesale and retail
Digos City, n.d.) and Digos Fresh Eggs Delivery in Digos City (Digos Fresh Eggs Delivery,
n.d.).
The egg industry in the Davao region faces several challenges, including
fluctuating demand and prices, disease outbreaks, and logistical issues. However, there are
also opportunities for growth and development, such as the increasing trend of swine
farmers moving to egg production due to the African Swine Fever (ASF) (Philippine
The volume of chicken egg production from April to June 2023 was
181.74 thousand metric tons. This is a -2.1% yearly reduction from the previous year's
metric tons, or 32.9 percent of total chicken egg production for the quarter. The top five
regions with the largest volume of chicken egg production this quarter included the
following:
egg production during the quarter. Relative to their outputs in the same quarter of 2022,
eight regions posted declines in production during the quarter. In terms of level, Central
Luzon posted the highest annual decrease of 4.88 thousand metric tons, from 38.22 thousand
metric tons in the same period of the previous year to 33.34 thousand metric tons this
quarter. (Table 1)
As of June 30, 2023, the country's entire chicken laying farm was
anticipated to be 66.96 million birds. This marks a 1.4 percent decrease from the inventory
level of 67.87 million birds in the same period last year. The layer chicken inventory fell -
2.7 percent, while the native/improved chicken inventory increased by 1.4%. Layer chicken
made up 66.1 percent of the entire laying flock, with native/improved chicken accounting
during the period. This was followed by Central Luzon and Northern Mindanao with
corresponding inventories of 11.11 million birds and 7.74 million birds. These three regions
shared 51.5 percent of the country’s total chicken laying flock population as of 30 June
Figure 4. Average Farmgate Price and Annual Growth Rate of Chicken Egg,
per piece, a 24.6 percent increase over the previous year's same quarter average farmgate
price of PhP 5.60 per piece. (Figure 4 and Table 3) In the second quarter of 2023, the
highest average farmgate price was recorded in April at PhP 6.99 per piece, while the lowest
average farmgate price was reported in June at PhP 6.96. (Table 3.)
2021 – 2023p
The Chicken Egg status Report summarizes the industry's status in terms of
production volume, inventories by chicken type, and monthly average farmgate pricing. It
provides a handy reference for the Philippine Statistics Authority's (PSA) numerous clients
and stakeholders in the agriculture sector. PSA obtained the data for this study using two
surveys: the Backyard Livestock and Poultry Survey (BLPS) and the Commercial Livestock
and Poultry Survey (CLPS). The BLPS seeks to evaluate the supply and disposal of
livestock and poultry commodities at the household level. In the second quarter of 2023,
21,884 sample households were surveyed from 1,156 sample barangays across the country.
On the other hand, the CLPS seeks to generate estimates on the supply and
disposition of livestock and poultry commodities from the sample establishments. There
were 728-layer sample establishments covered in the second quarter of 2023. Both surveys
are conducted quarterly in all provinces, including the National Capital Region (NCR).
Moreover, the commodities covered in the surveys include cattle, carabao, swine, goat,
By the end of 2020, egg production had hit a new high and was expected to rise
further in 2021. Local hog sector participants afflicted by ASF have switched to egg
production during the pandemic, boosting the country's egg supply in the final few weeks
of 2020, according to United Broilers Raisers Association (UBRA) President Bong Inciong.
Broiler raisers changed to layer farming owing to an excess caused by COVID-19 lockout
Chairman Gregorio San Diego Jr., even the industry's biggest companies have entered the
egg producing business. By then, the country's egg production had already begun to cause
issues for growers, according to San Diego. The supply was increasing while the demand
gradually in 2022. The DA is developing a number of actions to address the ongoing rise in
market pricing for chicken and poultry products. These include relaxing limits on chicken
situations, seeking alternative local feed components, and lifting poultry import bans,
among others.
Poultry infections have also been a concern for farmers, and the DA's Bureau of Animal
Industry (BAI) has provided special import permissions for autogenous vaccinations to
help avoid various poultry diseases, such as the feared inclusion body hepatitis (IBH). The
Typically, laying hens begin to lay eggs around 18-19 weeks of age and
continue to lay eggs until 72-78 weeks of age. This year, as a result of the fall in population
(actual data has yet to be disclosed) caused by IBH, egg prices have risen, and some farms
have opted to execute a molting to allow the supplied chickens to lay for a second time.
Figure 5. Philippines Retail Price: Chicken Egg: Medium: Region 11: Digos
30 Jan
8.2503
8.25030 Apr 8.25015 Apr 6.50015 Feb PHP/ 2021 -
0 Apr daily
2023 2023 2021 kg 30 Apr
2023
2023
In the Philippines, the average person consumed 5.27 kg of eggs in 2021, according
to Faostat. This represents a 6.68% increase over the prior year. In the past, the Philippines'
per capita egg consumption peaked in 1977 at 6.27 kg and fell to an all-time low of 2.51 kg
in 1967. In terms of egg consumption per capita, the Philippines is rated 96th out of the 164
nations we track.
A cheap and accessible source of protein and other nutrients are chicken eggs. They
also contain a lot of cholesterol by nature. However, unlike certain other foods, like those
high in trans and saturated fats, eggs don't seem to boost cholesterol levels. Despite the fact
that certain research has linked eating eggs to heart disease, these results may be explained
by other factors. Eggs alone may not increase the risk of heart disease as much as dishes like
bacon, sausage, and ham that are commonly eaten with eggs. Furthermore, cooking methods
such as frying in oil or butter may be more responsible for the elevated risk of heart disease
In the Philippines, the yearly per capita output index for chicken eggs was almost
118.9%, which was higher than the base year of 2018. Over the previous six years, the
nation's yearly per capita output index for chicken eggs has steadily increased. The
Philippines' per capita output index for chicken eggs from 2015 to 2021 ( Statista Research
Department,2024).
Philippines Retail Price: Chicken Egg: Medium: Region 11: Digos City data was
reported at 7.750 PHP/kg on 30 Jun 2023. This stayed constant from the previous number of
7.750 PHP/kg for 15 Jun 2023. Philippines Retail Price: Chicken Egg: Medium: Region 11:
Digos City data is updated daily, averaging 7.500 PHP/kg from Jan 2021 to 30 Jun 2023,
with 54 observations. The data reached an all-time high of 8.250 PHP/kg on 15 May 2023
and a record low of 6.500 PHP/kg on 15 Feb 2021. Philippines Retail Price: Chicken Egg:
Medium: Region 11: Digos City data remains active status in CEIC and is reported by
Philippine Statistics Authority. The data is categorized under Global Database’s Philippines
Chickens provide 93 percent of world egg production and eggs are one of the most
consumed products of animal source. Poultry production placed second among the most
important subsectors in the agriculture industry in the Philippines (Acosta, 2023). The
country’s total egg production in 2021 was registered at 661.39 thousand metric tons. This
was higher by 9.2% than the previous year’s production of 605.79 thousand metric tons
The demand for chicken eggs in the Davao Region appears to be relatively high,
leading to an increase in prices. Factors such as culling chickens and exporting eggs to other
parts of the country have contributed to a shortage of eggs in the local market, resulting in
price hikes.
Figure 6. The volume of Chicken Egg Production and Annual Growth Rate, Philippines
January-December 2019-2021
affected by African Swine Fever (ASF) moved to egg production, said Chairman of the
Philippine Egg Board Association (PEBA), Gregorio San Diego, reports the Business
Mirror, adding that the increase in production was only felt towards the end of 2020. “The
increase in supply was already felt toward the end of the year as was reflected in the
production to rise to an unprecedented level last year, according to data from the Philippine
At the provincial level, Batangas emerged as the top egg producer in 2021 with
174.25 thousand metric tons. This was followed by Pampanga with 73.75 thousand metric
tons and Cebu with 60.50 thousand metric tons. Among other top-producing provinces were
Bukidnon, Bulacan, South Cotabato, Davao del Sur, Rizal, Tarlac, and Negros Occidental.
The combined production of these provinces accounted for 71.6% of the country’s total egg
production.
In 2021, the average farmgate price of eggs in commercial farms was quoted at PhP
5.46 per piece. This was lower by -2.9% from the previous year’s average price of PhP 5.62
per piece (Figure 7). During the reference year, the highest price was noted in February at
PhP 5.82 per piece, while the lowest price was recorded in August at PhP 5.20 per piece.
The annual average retail price of the egg was PhP 7.14 per piece in 2021. This was
higher by 1.4 percent than the average price of PhP 7.04 per piece in 2020. In 2021, the
highest average retail price of the egg was recorded in April and May at PhP 7.25 per piece,
while the lowest was recorded in October and November at PhP 7.04 per piece.
continued to increase in 2021. Local hog industry players affected by ASF have moved to
egg production instead during the pandemic, pushing the country’s supply of eggs high over
the last few weeks of 2020, said the United Broilers Raisers Association (UBRA) President
Bong Inciong. Broiler raisers shifted to layer farming due to an oversupply amid COVID-19
lockdown restrictions and the influx of poultry imports, added Inciong. Even the big players
in the industry went into egg production according to UBRA Chairman Gregorio San Diego
Jr. By that time, the increase in the country’s egg production was already causing problems
for producers, San Diego said. The supply was increasing while the demand for eggs was
declining.
In 2022, the economy has started to recover slowly after the lockdown measures
have been eased. The DA is working on a series of interventions to quickly address the
continued rise in prices of poultry and poultry products in the markets. These include easing
monitoring of supply scenarios, sourcing alternative local feed ingredients, and lifting
Poultry diseases have been a problem as well for producers and the DA’s Bureau of
Animal Industry (BAI) has issued special import permits for autogenous vaccines to support
disease prevention on other poultry diseases such as the dreaded inclusion body hepatitis
(IBH). The said disease is caused by fowl adenovirus believed to be resistant to several
Usually, laying hens start to lay eggs from 18-19 weeks of age and continue laying
eggs until 72-78 weeks of age. This year, because of the decrease in population (real data
has still not been shared) because of IBH, the egg price has increased, and some farms have
decided to perform a molting to have a second period of laying of the stocked hens.
CHAPTER IV
Raw Materials
A. General Comments
To establish a successful layer chicken egg farming operation, several key
components and raw materials are essential. Firstly, the construction of suitable housing is
crucial. This includes materials for building chicken coops that provide adequate space,
nesting boxes for egg-laying and perches for the chickens to roost are essential components
of the infrastructure.
Feed is a fundamental raw material for layer chicken egg farming. This includes a
balanced combination of grains, protein supplements, and essential nutrients to ensure the
health and optimal egg-laying performance of the layer hens. Adequate water supply is
equally important, necessitating materials for waterers and a reliable water distribution
Ensuring the health and well-being of the layer flock requires raw materials for
bedding in the form of straw or wood shavings. These materials provide a comfortable and
clean environment for the chickens and contribute to waste management within the coops.
Additionally, appropriate waste disposal systems, such as bins for collecting and managing
chicken manure, are essential for maintaining hygiene and preventing disease.
Egg collection and storage are critical aspects of layer chicken egg farming. Raw
materials required include collection trays or baskets, which facilitate the efficient gathering
of eggs from nesting boxes. Storage materials like egg crates or cartons are essential for
layer flock from predators. Raw materials for fencing, such as wire mesh or wooden panels,
construction of shade structures or roofing are important to provide shelter for the chickens.
This helps in maintaining a comfortable environment and protecting the flock from adverse
weather conditions.
In summary, the components and raw materials needed for layer chicken egg
farming encompass the construction of suitable housing, feed and water supply systems,
materials for bedding and waste management, tools for egg collection and storage, fencing
for security, and structures for weather protection. Each of these elements plays a crucial
role in creating a conducive and productive environment for the layer hens, ultimately
Layer hens are ideal for egg production because they lay eggs early and consistently.
The choice of layer chicken breed is critical, with White Leghorns and Rhode Island Reds
being recommended for their high egg output. These varieties are adaptable to many
The type of layer chicken is really important to examine. Optimal breeds, such as
White Leghorns and Rhode Island Reds, are known for their abundant egg production and
efficient feed conversion. Their flexibility to numerous conditions makes them more
selection. Optimal breeds, distinguished by effective egg production and manageable size,
allow for more efficient coop usage. When combined with a usually calm conduct, these
and size lays a solid basis for a successful and profitable egg farming operation that meets
market expectations.
known for its sustainability and rapid growth, can be a cost-effective and environmentally
friendly alternative for creating chicken coops. The key raw materials needed include sturdy
bamboo poles for the framework and walls, bamboo mats or woven panels for coop
flooring, and thatch or bamboo leaves for roofing. The construction process entails
assembling the bamboo poles to form a secure frame, weaving bamboo mats for the coop
floor to ensure comfort for the layer chickens, and finally, applying thatch or bamboo leaves
salvaged metal can enhance the structural integrity of the coops. This approach not only
aligns with sustainable practices but also minimizes the environmental impact of the project.
To further reduce disruption, careful planning of coop placement and design is crucial to
harmonize with the natural landscape and maintain the well-being of the layer chickens. The
result is a non-disruptive layer chicken egg farming operation that not only utilizes eco-
friendly materials but also integrates seamlessly into the surrounding environment, fostering
layer chicken egg farming, choosing appropriate lighting equipment is pivotal. LED lights,
known for their energy efficiency and long lifespan, are a suitable choice. The raw materials
required include LED bulbs with a color temperature suitable for layer chickens, durable
wiring, and fixtures that can be easily integrated into the bamboo structure. The selection of
Determining the number of watts needed depends on factors such as coop size,
layout, and the specific needs of layer chickens. On average, a lighting intensity of 15-20
lux is recommended for layer chicken egg production, and this can be achieved by
calculating the total square footage of the coop. For instance, a 100-square-foot coop may
require around 150-200 watts of LED lighting to meet the recommended illumination levels.
This tailored approach ensures that the layer chickens receive adequate light for their well-
LED lights can regulate the lighting cycle, simulating natural daylight patterns. This not
only contributes to the well-being of the layer chickens but also fosters a non-disruptive