CAD Egg Farm Pampanga State Agricultural University Magalang Pampanga Department of Agricultural Business, Economics and Entrepreneurship Business Proposal Submitted by: Castro, Hazel R. Aldana, Paulene M. Dizon, Carmina Jane L. Submitted To: Prof. Fernando Pangilinan
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CAD Egg Farm
Pampanga State Agricultural UniversityMagalang Pampanga
Department of Agricultural Business, Economics and Entrepreneurship
Business Proposal
Submitted by:Castro, Hazel R.Aldana, Paulene M.Dizon, Carmina Jane L.
Submitted To:Prof. Fernando Pangilinan
Documentation
BUSINESS PROPOSAL CONTENT
I. IntroductionII. Organization PlanIII. Production / Technical Plan IV. Marketing PlanV. Financial PlanVI. Profitability Test/ Indicators
I. Introduction
I. Introduction• Chicken broiler and egg production are the most progressive animal
enterprises in the Philippines today. The poultry industry in fact began as the backyard enterprise but has shifted to the formation of very large integrated contract farming operations.
• The growth of poultry industry in the Philippines has been impressive but its problems include inefficient management and the prevalence of many destructive poultry diseases and parasites cannot be ignored.
• The chicken is the most exploited species of poultry, which is utilized for food production in the whole world. Scientific researchers have been done on this species for past centuries and it is still the focus of the present and future experimentation. In the Philippines chicken rank first, while ducks rank second in economic importance as source of meat and eggs.
• The egg layer class is characterized by their comparatively small size. They lay large white shelled eggs, very active and nervous in temperament. They are non-sitters. The earlier selection of geneticist for this class showed record of early maturity that may not necessarily be true with the modern breeds under this class. Examples: Leghorn, Minorcas, Anconas, Mikawa.
• As of January 1, 2015, total chicken population was 176.47 million birds or 5.25 percent higher than last year's total stocks of 167.67 million birds. The inventory of broilers and native/improved chicken also went up by 8.18 percent and 3.31 percent, respectively. Layer chicken inventory likewise grew by 4.16 percent.
• Total chicken production in 2014 went up by 1.07 percent compared with last year's volume. On the other hand, chicken egg production for 2014 went down by 2.81 percent from the 2013 level.
• Along with the slight increase in chicken production, the gross value at current prices for 2014 also went up by 1.07 percent or Php. 143,045.42 millions compared with its value last year.
• The value of chicken egg production at current prices in 2014 increased by 3.96 percent despite the decrease in production.
http://agstat.psa.gov.ph/?ids=chickensituation
CAD Egg Farm Objectives
• To gain proper knowledge on how to raise an egg farm
• To know all the advantages and risks in venturing this kind of business
• To prepare ourselves in handling our own business
II. Organizational Plan
FORM OF THE BUSINESS ORGANIZATION
PartnershipA business organization in which two or more individual manage and operate the business. Both owners are equally and personally liable for the debts.
Organizational ChartOwner/Farm
Manager
Flock men
Veterinarian Bookkeeper
Security GuardDriver
Job QualificationsPOSITION QUALIFICATIONS
Bookkeeper- must know how to compute, audit and
must be computer literate.- must be graduated in any accounting-
related course.
Veterinarian-must be a licensed veterinarian
and has a specialty in layer production.
Flock men-must have a knowledge in layering -must be reliable, hardworking, and
willing to be trained.
Driver
-must have a professional driver’s license
-must have a knowledge about proceeding into different
locations.
Security guard -must be brave and came from a reliable agency.
Job DescriptionPOSITION DUTIES & RESPONSIBILITIES
Owner/ Farm manager
-Manage all the operations in the farm
-Finance the farm’s cost of production- They make plans and decisions and
take calculated risk.
Veterinarian
- Visits the farm twice a month or when needed to monitor the health
of the flock.-Gives medication and vaccination
program to the flock.
Bookkeeper-In charge in keeping records of
everyday production, laying efficiency of the flock, mortality, and other
matters concerning to stocks.
Flock men
-They ensure that the birds get proper vaccination and supplementation.
- In charge in the everyday activities in the farm such as feeding, watering, cleaning
houses, collecting manure, collecting and weighing eggs and other.
Driver -Deliver the collected eggs to the target market.
Security guard -Secure the peace and order situation in the farm.
Compensation and BenefitsPOSITION QUANTITY MONTHLY SALARY BENEFITS
Veterinarian 1 P2,500.00 per visit (on call)
Bookkeeper 1 P9,000.00 13 month pay ,SSS, Phil Health
Flock men 4 P7,000.0013 month pay, SSS,
Phil Health
Driver 1 P5,000.0013 month pay, SSS,
Phil Health
Security guard 2 P6,000.0013 month pay, SSS,
Phil Health
III. Production/Technical Plan
Proposed Location
• The farm will be located at NHA Purok 9, Telapayong, Arayat, Pampanga.
• The farm will be 1km. away from residential area.
• Farm to market road is accessible.
Pandacaqui Rd.
Mag
alan
g-Ar
ayat
Rd.
Mag
alan
g-Co
ncep
cion
Rd
Magalang-Angeles Rd.
San Vicente Rd.
Buensuceso Rd.
Municipality of Magalang
Telapayong Elementary School
Telapayong Covered Court
Telapayong Church
Proposed Name of the Business
• The “CAD Egg Farm” will be derived from the first letters of the surnames of the owners.
C- Castro, Hazel R.A-Aldana, Paulene M.D-Dizon, Carmina Jane L.
Farm Layout
200m
100m 80m
40m 20m
60m
15m
15m
10m
10m
2m
2m
N
W E
S
6m
6m
Production Flowchart
• The chicks will be in growing houses at 1-16 weeks old and will be vaccine fowl pox at the
age of 10-12 weeks. After
they reach 16-17 weeks, they are transferred
to laying house.
• Chickens will begin to lay
eggs at 20-22 weeks.
Generally, layers reach
maximum egg production
when they are between 30-36
weeks old, after which egg
production tends to
decline and the chickens will be
culled.
• Eggs will be collected daily
and will be grade based on
their weight. The graded egg
will be delivered to the target market.
Source Of Stocks And Other Supply
• The breed that will be Raised by the Farm is Lohmann Brown chickens, because of its low mortality rate and high laying Efficiency.
• The stocks will be bought from Rubina Farm in Bulacan and sometimes from Heritage farm.
Time FrameDescription April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb Mar
Preparation of the business plan
Preparation of the land
Construction of the farm
Applying for the business permit
Buying of chicks
Feeding the chicks with starter mash
Feeding the chicks with developer mash
Feeding the chicks with laying mash
Collection of eggs
Collection of manure
Tools and EquipmentEquipment Quantity Price per Unit Total costEgg grading
machine 1 P35,000 P35,000
Generator 1 200,000 200,000
Pail 6 50 300
Truck 1 350,000 350,000
Jetmatic 2 8,000 16,000
Shovel 3 650 1,950
Water host 130ft 25/ft 3,250
Broom stick 3 16 48
Feeder container 500 20 10,000
Tray 500 4 2000
Dust pan 3 20 60
Push Cart 3 1500 4500
Pantabas 2 450 900
Power Sprayer 2 5500 11,000
Total P653,008
IV. Marketing Plan
Marketing Mix (4’s)
ProductPrice PlacePromotion
Products
Prices
SIZES PRICE /PIECE
Small P4
Medium P4.33
Large P4.83
Extra Large P5.33
Cracked P3
Place
The CAD Egg farm will be located at NHA Purok 9 Telapayong, Arayat, Pampanga with an area of 2 hectares.
30%
25%20%
15% 10%
Magalang Public MarketAngeles Public MarketArayat Public MarketMabalacat Public MarketPick up buyers
Channel of Distribution
Promotions Word of mouth T-shirt
CAD Egg Farm
V. Financial Plan
Capital Requirement
The capital requirement is P 7,000,000 which will be loan from the BDO with 12% interest per annum.
Two of the owners will be providing P3,000,000 and one of the owners will contribute P1,000,000 and the 2 hectare land that they will use.
Loan amortization schedule
Loan Payment Interest Total Payment of Loan
1st year P7,000,000 P1,400,000 P7,000,000 x 12% P840,000 P2,240,000
2nd year P5,600,000 P1,400,000 P5,600,000 x 12% P672, 000 P2,072,000
3rd year P4, 200,000 P1,400,000 P4, 200,000 x 12% P504,000 P1,904,000
4th year P2,800,000 P1,400,000 P2,800,000 x 12% P336,000 P1,736,000
5th year P1,400,000 P1,400,000 P1,400,000 x 12% P168,000 P1,568,000
Cost Analysis
Farm ConstructionDescription Quantity Price/unit Total
Laying House 2 600,000 1,200,000
Brooder House 2 350,000 700,000
Laborers House 1 250,000 250,000
Storage houseFor Eggs 1 200,000 200,000
Office 1 100,000 100,000
Guard House 1 50,000 50,000
Tools and Equipment house 1 150,000 150,000
Total P2,650,000
Feeds
Feeds Age of Chick No. of Sack Price Total
Starter Mash 1-6 weeks 130 P1,000 P130,000
Developer Mash 6-20 weeks 295 P1,000 P295,000
Laying Mash
20-80 weeks 1260 P1,050 P1,323,000
Total P1,748,000
SSS Contribution
Names Salary Quantity
Monthly ContributionTotal
contribution in SSS
Employer Yearly
contribution
Employer Employee
Bookkeeper P9,000.00 1 P 636.00 P 300.00 P 936.00 P 7,632Flockmen P7,ooo.oo 4 1,978.8 933.2 2,912 23, 754Driver P5,000.00 1 353.30 166.70 520 4239.6Security guard
P6,000.00 2 848 400.00 1,24810, 176
Total P 3, 815 P 1,799.9 P 5,616 P45,801.6
Phil. Health Contribution
Names Salary Quantity
Monthly ContributionTotal
contribution in Phil Health
Employer Yearly
contributionEmployer Employee
Bookkeeper P9,000.00 1 P 112.50 P 112.50 P 225 P 1,350