Business Plan on

5J's Piggery Farm in the Municipality of Surallah

Author:

Abstract
The proposed business is 5 J's Piggery Farm. The products of the business are live pigs
and pork meats. The business is located at the 10th Street beside Matinong Palm Nursery,
Poblacion, Municipality of Surallah. The business will be advertised using leaflets or fliers,
tarpaulins, and radio broadcasting through Brigada FM.

The form of the business organization is sole proprietorship. The demand of the proposed
project is based on the gathered data which is 180 live pigs and 24,480 kilogram per quarter
and the supply of the existing competitor is 24 live pigs and 3,264 kilogram for pork meats
per quarter, a demand and supply gap of 156 live pigs and 21,216 kilograms of pork meats.
The owner will acquire a loan from the Overseas Welfare Workers Association (OWWA)
loan program for the former OFW's worth Php 1,426,731.00.
Lastly, the proposed business has an economic advantage for it gives employment
and income to other and supports government projects through the taxes of the business.

INTRODUCTION

The livestock farming industry of which pig farming line of business is a part of is indeed a
large industry has been one of the leading industries in most countries in the world. It
produces food for the populace and raw materials for other industries. The government of
most countries ensures that they go all the way to subsidize seedlings, fertilizers, and
machineries for farmers. They also encourage the entrepreneurs to go into various kind of
farming including pig farming. Pig farming is of course a thriving and profitable business
because of the nutritious value of pig meat (pork) and other by products from pigs
(Profitable Venture, 2016). In the Philippines, pig farming has been a profitable business for
Filipinos through the decades. It was also a very promising industry in the country
considering the fact that there is a high demand for both processed and fresh pork meat
being cooked at homes and any other cooking establishments like restaurants on ordinary
and special family occasions. In effect, large scale and backyard pig production exist and
grow (Scribed, 2016).
Since Surallah is currently the Provincial Agro-Industrial Center of South Cotabato, pig
farming is a good business opportunity because it will increase the municipality's average
income. Other than existing pig farms in Surallah, there will be a new market for other
industry.that supplies the basic needs of the business that will increase the municipality's
economy.

The proponent has conceptualized to engage in this kind of business to supply the felt-need
of the desired profit from this endeavor. Also because of the availability of materials used
and high demand of the products of the said business.

MARKETING PLAN
Product Description
The proponent will raise piglets for fattening and some for farrowing. The business deals
mainly with pig farming and selling of pork meats and live pigs for the start but it will expand
in the long run large scale. The piglets will be provided proper nutrition and sanitation to
assure that they are healthy and disease-free until they are disposed to buyers.
Competitors
Pig farming is a widely known business since pork is generally the most consumable meat
in the world. The business has its one (1) specific competitor around the area, the DLL Farm
LTD. The business also produces and raised pigs for fattening and farrowing.
Target Market
The business will supply establishments that offer food services in the Municipality of
Surallah. Potential markets include meat vendors in the Surallah Public Market, Surallah
residents, caterers, hotels and restaurants within and near the Municipality of Surallah.
Rank No.
Top Sectors
Total No. of Population (estimates)
55
Target Market Population Percentage
in
19
35%
Vendors Surallah Market
the Public
w
15 76,035
15,207
Caterers Surallah Residents Hotels
and
and Restaurants TOTAL
20% 23% 22%
76,097
15,231
100%
Demand
Rank No.
Percentage
Top Meat Product Needs
Pork Chicken
Beef TOTAL
59% 25% 16% 100%
Local Production (kilograms
per quarter) 24,480 kg 10,373 kg 6,639 kg 41,492 kg
The table presents the demand of top meat product needs in the market. The estimated
local production of meats is 165,968 kilogram annually (Ugnayan, 2016). The total
production of meats per quarter is derived by dividing the total annual production of meats
to four (4) which resulted to 41,492 kilogram per quarter. Then the local production for each
product is derived by multiplying the total production of meats per quarter to the percentage
of each demand. To get the demand for live pigs, the local production of pork meat is
divided by 136 kilogram which resulted to 180 heads.
Supply
No. Name
of Available
Number of Units Price/kg
Service (No. of
the
Products/Se Produced
Hrs. served)
business
rvices
(quarterly)
DLL
Farm
Live Pigs
24 heads
P 130.00/kg 10 hours
LTD.
Pork Meats
3,264 kg
P150.00
The table presents the supply of live pigs and pork meats in the market. The DLL Farm LTD
can produce 24 live pigs with an equivalent weight of 3,264 kilogram for the production of
pork meats. The total weight is derived by multiplying the number of live pigs produced to
136 kilogram per head.
Supply and Demand Analysis
Product
or
Demand
Supply
Gap or Excess
Services
Live Pigs
180 heads
24 heads
156 heads
Pork Meats
24,480 kg
3, 264 kg
21,216 kg
The table presents the supply and demand gap of 156 heads for live pigs and 21,216
kilograms for pork meats by subtracting the supply from the demand.

THE MARKET MIX

Product
Product
Description
Target Price
Live Pigs
These are piglets being
Php 125.00/kilogram
raised for fattening and
sustained with proper
nutrition and sanitation.
Pork Meats
These are meats coming
Php 138.00/kilogram
from fattened pigs.
.
Cost of Production (Pricing)
The business will offer a price that is affordable and just to consumers. The
pricing of each product is based on the cost of production.
Item
Pork Meats
Live Pigs
Total
Piglets (for Pork Meats)
Php 125,000.00 | Php 135,000.00 | Php 260,000.00
(50 piglets for pork meat and
54 piglets for live pigs
production x P2,500/head)
Feeds
Pig Starter
Php 31,680.00 | Php 34,650.00 | Php 66,330.00
(P990.00/50kg/bag x 32 bags
for pork meats and 35 bags for
live pigs)
Grower (P825.00/50kg/bag x Php 89,100.00
Php 96,525.00
Php 185,625.00
108 bags for pork meats and
117 bags for live pigs)
Finisher (P810.00/50kg/bag
Php 40,500.00
Php 43,740.00
Php 84,240.00
x 50 bags for pork meats and
54 bags for live pigs)
Vitamins/Injections
Jectran Iron
Php
2,800.00 | Php
3,080.00 | Php
5,880.00
[50 piglets x 2 days=100mL (1mL/pig/day) / 10ml/bottle = 10 bottles x Php 280/bottle for
.
o
pork meats and 54 piglets for
live pigs]
Multivitamins
Php
2,100.00 | Php
2,310.00 | Php
4,410.00
[50 piglets x 2 days=100mL
(1mL/pig/day) / 10ml/bottle = 10 bottles x Php 210/bottle for pork meats and 54 piglets for
live pigs]
Total
Php 291,180.00 | Php 315,305.00 | Php 606,485.00
Add: (Other Expenses)
Slaughter House Expense (for Php 52,500.00
Php 52,500.00
pork meats - Php 1,050/head)
Electricity
Water
Php 5,760.00 | Php 6,240.00 | Php 12,000.00 Php 5,040.00 | Php 5,460.00 Php 10,500.00
Php 29,030.77 Php 31,353.23 Php 60,384.00
Labor/Salarý
Total Production
Php 383,510.77 | Php 358,358.23 | Php 741,869.00
Cost(383,510.77/50=7,670.221
136kg=56 per head for pork
meats)
[331,010.77150
=7,167.16/136kg=53 per head
for live pigs] Mark-up Margin (per kilogram)
82/kg
72/kg
Selling Price (per kilogram)
Php 138.00/kg
Php 125.00/kg
.7
The table presents the total production cost which is Php 741,869.00 and the
pricing of each product, Php138.00/kilogram for pork meats and Php 125.00/kilogram
for live pigs. Fifty (50) pigs for the production of pork meats and fifty (50) pigs for the
production of live pigs. The remaining four (4) pigs are for farrowing.
Place of Business
The business is located at the 10th Street beside Matinong Palm Nursery,
Poblacion, Municipality of Surallah with a lot size of one (1) hectare. The lot that will be used
in the production area was owned by Mr. Pedrito Banzon Sr., Father of the proponent.
SURALLAH PUBLIC TERMINAL
Surton Founds
SurallahThe
PEDRITO BANZON'S LOT
Floor Plan :
Stock Room
2x4 ft.
PASSAGE
Tools
10 ft.
15 ft.
The figure shows the floor plan of the designed pig pen. A pig pen of this size can
accommodate up to 13 pigs in each room.
Promotions
The business will be using three types of advertisement. These promotional advertisements
will help the business and the product to be promoted and well known to the market.
a) Leaflets/Fliers
The 5J's Piggery Farm will be advertised through leaflets or fliers. The leaflets or fliers will
be distributed to all target consumers in the Municipality of Surallah.
b) Tarpaulins
.The 5J's Piggery Farm will be advertised through tarpaulins. The tarpaulins are to be
posted in the major streets in the Municipality of Surallah.
c) Radio
The 5J's Piggery Farm will be advertised through radio broadcasting.
The business will be broadcasted in Brigada News FM in the Municipality of Surallah.
The 5J's Piggery Farm will set an advertisement schedule for the promotional strategy. The
range of advertisement strategy is within the Municipality of Surallah that is potentially
reached by the distribution of schedule.
Advertisement Schedule
Place
Days per Month
Promotional
Strategy
Time of Distribution
Leaflets/Fliers
Commercial Areas
Once a month
Tarpaulins
Every six months
Commercial Areas and areas along the major streets
in City of Koronadal Within City of Koronadal and areas that are reached by the radio
channel
Radio (Brigada)
1 month
Four (4) times in 6:00-:00 a.m. and Eight (8) times in 4:00-6:00 p.m.
Costs of Promotional Materials
Medium
Quantity
Cost Ads
Total
Leaflets
.
500 500
Php 0.25
Php 125.00
Tarpaulines
4
Php 180.00
Php 720.00
Radio (Brigada)
Php 15,000.00per month
Php 45,000.00
Total
Php 45,845.00
Competitive Advantage
The business will offer better and greater value to the customers by giving lower
prices but higher quality products. Also, the business will create a good network and
excellent relationship management with its clients. Another competitive advantage is
that the business location is far from the residential areas.
Lastly, the workers will be well taken care of and assures that they will be more
than willing to build the business with the owner and help deliver the set goals of the
business.
10
Planned Sales Volume
Product Live Pigs Pork Meats
Price/kg Sales per Cycle Year 1 | Year 2 Year 3
125.00) 850,000.00) 2.550,000.00 2,805,000.00 3,085,500.00 138.00 938,400.00
2,815,200.00 3,096,720.00 3,406,392.00
1,788,400.00 5,365,200.00 5,901,720.00 6,491,892.00
Year 4 Year 5 | 3,394,050.00 3.733.455.00 3,747,031,20 4,121,734.32||
7,141,081,207,855,189.32
TECHNICAL PLAN The procedure in raising pigs is described below through
tabular form and
followed by the process flow diagram.
Process
Steps
Description of Activity
1, Build a pig pen.
2. Purchase Piglets
3. Feeding (Pig Starter)
4. Vitamins/Injection
The pig pen is constructed with the desired size for the number of piglets in each room.
Buying piglets at the nearest farm that sells piglets and assures that they are healthy The
piglets are being fed with pig starter at the start within 32 days and 1 kilogram of feeds per
day. At the third and fourteenth day from birth of the piglets, 1mL of Jectran Iron is injected
per piglet. On the tenth and twenty-fifth day, 1mL of Multivitamis is injected per piglet The
piglets are being fed with grower within 54 days and 2 kilograms of feeds. per day The
piglets are being fed with finisher within 25 days and 2 kilogram of feeds per day.
5. Feeding (Grower)
6. Feeding (Finisher)
7. Weighing
8. Pig Slaughtering
The piglets are being weighed to make sure that it meets the desired weight for the shipping
and distribution. The pigs are brought to slaughtering house for the production of pork
meats. The pigs and pork meats are now ready for the distribution.
9. Shipping and Distribution
Process Flow Diagram
Purchase Piglets
Build a Pig Pen
Vitamins/Injection
Feeding (Pig Starter)
Pig
Shipping and | Distribution
Weighing
Slaughtering
Feeding (Finisher)
Feeding (Grower)
Machinery and Equipment
Item
Quantity
Acquisition Total Cost Life Depreciation Depreciation Cost
Span (Monthly) (Annually)
Delivery Tricycle
75,000.00
75,000.00
15
41.67
500.00
Digital Weighing Scale
4,300.00
8,600.00
8
8.96
107.50
Farrowing Crates
17,500.00
70,000.00
10
58.33
700.00
Feed Scoop
2
147.00
294.00
12
Feeders
8
11,000.00
12
88,000.00 3,500.00
175.00
Plastic Syringe Nipple Drinkers
120.00
960.00
15
Pig Scale
:2
38,695.00
77,390.00
12
80.62
967.38
Total
146,937.00
323,744.00
189.58
2,274.88
Office Supplies
Item
Cost
Total Cost
Quantity
1 box
45.00
45.00
Ballpen Calculator Logbook
480.00
960.00
w
50.00
150.00
Official Receipts
65.00
975.00
Total
640.00
2,130.00
Operations Supplies
Item
Quantity
Cost
Total Cost
Hair net
25.00
100.00
2
753.00
1,506.00
5
9.00
Kitchen Knife Meat Livestock Marking Crayons Plastic Hand Gloves Rubber Boots Scalpel
Handle and Blades
45.00 500.00
50 pairs
10.00
597.00
3 pairs
2
199.00 173.00
346.00
Side Cutting Pliers
100.00
200.00
Small Ear Notching Pliers
1,188.00
594.00 1,863.00
Total
4,482.00
Utilities Supplies
Item
Quantity
Total Cost
Cost 800.00
Hose
1,600.00
Pail
Nwn
200.00
600.00
Shovel
360.00
720.00 2,920.00
Total
1,360.00
Labor Cost
Number of
Workers
Number of Workers
Rate/day
Days
Total Rate
24,000.00
Carpenters
2
40
300.00 220.00
Laborers
40
44,000.00
Total
68,000.00
Materials
Costs
Carpentry Works
Php 70,000.00
Electrical Works
15,000.00
Embankment
25,000.00
Flooring and Doors
30,000.00
Plumbing
20,000.00
Roof Works
50,000.00
Labor
68,000.00
Total
Php 278,000.00
Position
Job Description/
No. of
Salary per
Annual
Requirements
Personnel | Month
Salary
Needed
Driver/Deliverer
P 8,160.00
P 97,920.00
• Male
Must be at least a high school graduate Must be physically and mentally fit
Must be at least 25
years old but not
more than 50 years Must have driving license and years of driving safely
Field Worker
• Male
P 16,320.00
P 195,840.00
Must be at least a high school graduate Must have at least one (1) year experience in pig
raising
Must be at least 25
years old but not
more than 50 years TOTAL
P 24,480.00 P 293,760.00
ORGANIZATION AND MANAGEMENT PLAN
Type of Organization
The proposed project is a sole proprietorship. The owner will acquire a loan
from the Overseas Welfare Workers Association (OWWA) loan program for the former
OFW's to finance the needed fund in establishing and operating the business.
Management is by the owner/proprietor who will supervise the employees within her
authority.
Organizational Structure
Owner
Field Worker 1
Field Worker 2
Driver/Deliverer
Taxes and Licenses
The following are the requirements for the production of piggery farm business:
Type of Document Fees
Transport/Other
Total
Expenses
Barangay
P 200.00
P 20.00
P 220.00
Clearance
BIR Registration
P 500.00
P 110.00
P 610.00
Business Name
P 315
P 100.00
P 415.00
Registration
Business Permit
P 1,000.00
P 100.00
P 1,100.00
16
Environmental
P 1,500.00
P 100.00
P 1,600.00
Compliance
Certificate
Mayor's Permit.
P 500.00
P 20.00
P 520.00
Sanitary Permit
P 200.00
P 20.00
P 220.00
TOTAL
P
4,215.00
P 470.00
P 4,685.00
Duties and Responsibilities
The table below presents the personnel of the business with their
corresponding roles and functions.
Position
Duties and Responsibilities
• Drives safely and delivers
products within deadlines
Supervisor Owner
Driver/Deliverer
Provides care in
delivering products Analyzes delivery address, determines
appropriate routes and maintain schedule
Performs vehicle
inspection such as checking fluid level and tire pressure Notifies supervisors about
any major repairs and
maintenance
Follows local and state driving laws and road regulations
Maintains the vehicle
clean and safe
Field Worker
Responsible for feeding
Owner
pigs
Responsible for cleaning
the piggery Changes the water in piggery as instructed by the supervisor on a regular basis
Assists in handling the breeding of piglets and
pigs
Assists in transport working tools and equipment from the farm
and back to the
designated store room
FINANCIAL PLAN
Total Estimated Project Cost
Construction of Pig Pen Acquisition of Machinery and Equipment Production Cost Office
Supplies Operations Supplies Salaries Expense Utilities Supplies Marketing Expenses
Licenses, Registration and Fees Repairs and Maintenance Total Project Cost
Costs Php278,000.00
323,744.00 741,869.00
2,130.00 4,482.00 24,480.00
2,920.00 54,005.00
4,685.00
10,000.00 Php1,446,315.00
.
o
Sources of Fund
 For the proponent to finance the Total Project Cost, the proponent will acquire a loan
from the Overseas Welfare Workers Association (OWWA) loan program for
the former OFW's worth Php 1,446,315.00.
The table presents the annual financial charges of the loan.
Annual Financial Charges
Principal Loan
Php 1,426,731.00
Mode of Payment
Quarterly
Term of Loan Term of Loan
.
Long-term loan
Interest per Annum
7.50%
Schedule of Loan Interest and Re-Payment
Year Principal (in Peso) Interest (%) Total Payment (Quarterly). Total Payment (Annually)
Outstanding Balance
1 | Php 1,446,315.00 | 7.50% Php 94,010.48 | Php 376,041.90 | Php 1,070,273.10 | | 2 |
Php 1,554,788.63 | 7.50% T Php | 188,020,95 | Php , 752,083.80 | Php 802,704.83
3 | Php 1,663,262.25 | 7.50 | Php 282,031.43 | Php 1,128,125.70 | Php 535,136,55 | 4 | Php
1,771,735.88 | 7.506 | Php 376,041.90 | Php 1,504,167.60 | Php 267,568.28 5 Php
1,880,209,50 | 7.50% Php 470,052.38 Php 1,880,209,50 | Php
Financial Assumptions
1. Sales will increase by 10% annually based on the percentage increase in the
aggregate sales of pig farm businesses.
2. Pig pen will expand to five rooms in the next two (2) years. The cost will be
financed by the owner.
3. Salaries and Wages will increase by one percent (1%) annually.
4. Direct Materials will increase by two percent (2%) annually based on the
inflation rate.
1.9
5. Repairs and Maintenance will increase by one percent (1%) annually based on
the inflation rate.
6. Office supplies expense will increase by one percent (1%) annually based on
the inflation rate.
7. Utilities supplies expense will increase by one percent (1%) annually based on
the inflation rate.
8. Operation supplies expense will increase by one percent (1%) annually based
on the inflation rate.
9. Taxes and Licenses will increase by two percent (2%) annually.
10. Interest expense is seven point fifty percent (7.50%) annually.
11. Withdrawal of the owner is P 1,000,000.00 annually.
12. The depreciation being used to property, plant and equipment is straight line
method.