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PLACIDO BROILER FARM

(POULTRY AND LIVESTOCK SECTOR)
A CASE STUDY

INTRODUCTION

Agribusiness is generally the commercial aspect related to agriculture or

agricultural activities and its product. The Agribusiness sector is engaged in the
production and operation of the farm, the manufacture and distribution of farm
equipment and supplies, and the processing, storage and distribution of farm
commodities. As a whole, the Agribusiness sector is quite diverse as it encompasses
input production, farm operation and management, equipment and supplies
manufacturing, food/non food processing, trading and retailing.

Chicken broiler and egg production are the most progressive animal business
in the Philippines today. The poultry industry in fact began as a backyard enterprise
but has shifted to the formation of very large integrated contract farming operations.
Data from the Philippine Statistics Authority shows that poultry sector valued at about
Php69B in 1990 soared up to PhP123B in 2016, posting a 78 percent growth making
it the fastest growing animal sector in the country today.

The farm is presently engaged in the production of live chicken. As an

integrated poultry producer, the corporation oversees every aspect of the poultry
production process. The main objective of this Poultry Farm is to enhance the
production of chicken meat for human consumption and to productively mobilize the
existing land resources.
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BACKGROUND OF THE FARM

Brief History

Placido Broiler Farm was built in 2013 starting one tunnel vent then followed
by another three buildings in the year 2014. It was owned by Danny and Evelyn
Placido, the farm was established also to help the community to have other source of
income aside from planting rice and other commodity.
The tunnel ventilated poultry farm is located in Brgy. Ganduz, Pantabangan,
Nueva Ecija. The farm is very accessible to all land transport. The farm is near the
river that is essential for the water resources of the chicken and far from the houses to
avoid unnecessary circumstances. The farm has a total of four tunnel ventilated
poultry building, with great water and electricity supply, backup generators and tanks
in case of electricity interruption. There is also a feed storage and barracks for the
labourers.
At present, the farm is still managed by the couple. However, the farm is in
the process of looking for a resolution regarding the delayed delivery of the chicks
since of the in demand production of broilers.

Location of the Farm

Placido Farm has partnered with Magnolia Corporation. The farm is located in
Ganduz, Pantabangan and the farms are structured with four Tunnel-Ventilated
Housing. All the facilities and equipment were built in accordance with the
specification of their partner company.
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ORGANIZATION AND MANAGEMENT

The Placido Farm adopts a line-staff organization structure with flow of

communication and authority from the owner then down to their labourers. The farm
is headed by Mr. Danny Placido, his wife Evelyn Placido. There were also
personnel’s that is handling the farm operation coming from their partner company
and to their farm itself.

Duties and Responsibilities

The duties and responsibilities of the personnel in Poultry farm are briefly
summarized as follows:

Veterinarian

The person who monitors the health of birds. The veterinarian visits the farm
twice a week and checks the condition of the birds in the farm.

Farm Manager

The farm manager is designated to look into the production cycle of the farm.
The farm manager supervises the farm, and also takes charge when the owner is not
around. Also, it is the farm manager’s task to list down all the facts regarding
mortality of the birds.

Broiler Technician

The person who monitors the whole operation of the production, and is always
present in the farm during the arrival of the chicks up to harvesting. Also, the broiler
technician is responsible for observing the performance of birds, and in making
decisions regarding the farm’s daily operations.
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Farm Owner

The owner takes charge of the over-all operations of the farm. The owner
handles the incoming and the outgoing transactions in the farm such as those
involving deliveries, feed orders and veterinary drug supplies. The owner also decides
what the next plan of action would be, and the future prospects of the farm. The
owner also sets the rules to be followed within the farm.

Laborers/Flock Men

They are responsible for performing all the necessary production activities in
the farm such as feeding, providing water to the birds and other related activities.
They are also responsible in maintaining the sanitation of the farm and its
surroundings.

Salaries, Wages and Benefits

The owner of the farm provides the compensation of the flock men. Each
every production cycle, the owner of the farm provides incentive to his employee.
During Christmas season, the owner gives free T-shirts, chicken, grocery items and
cash. And for the veterinary and broiler technician, the partner company shoulder
their salary and incentives.

PRODUCTION MANAGEMENT
Contract to Buy Scheme

CTB Scheme is an agreement between the Placido Farm owners and

Magnolia Corporation. They signed a CTB arrangement in boiler production in 2013.
Under these schemes the farm will provides the good growing condition and skilled
laborer and equipment, while their partner Corporation provides feeds, Cobb broiler
chicks and animal healthcare. The partner corporation delivers day-old-chicks of good
quality to the growers, which are characterized as: not junior-sized, no physical
deformity, healthy and free from disease. The company also provides technical
services and free consultation.
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The contract is renewed every year by the representative of both parties. In

one year, there are 6-7 growing cycles depending on the availability of Cobb broiler
chicks and the productivity of the previous cycles.

Broiler Production Process

To attain the standards set in the contract by Magnolia Corporation, the farm
strictly follows the specifications of the company in doing all farm activities such as:
preparation of the house, disinfection, preparation of brooder, procurement of chicks,
management of birds from growing to finishing stage and harvesting. Good farm
management leads to maximum utilization of material inputs resulting in higher
productivity.
During the loading of day-old-chicks, a representative from partnered
Corporation delivers vaccine and biologics which are administered to the chicks as
per schedule. The company provides technical assistance during loading of chicks,
growing and harvesting of broiler.
All broiler houses in Placido farm are using tunnel-ventilated housing, thus
heat-related stress and mortality in broiler flocks during high period of high
temperature has been prevented, this is particularly evident during sudden changes in
temperature.
A few of the standards that the farm must meet are the set growing period for
the broiler which is 28-33 days at this age and an average live weight (ALW) of at
least 1.55-1.65kg. At this weight, the partnered Corporation pays PhP95.00/kg.

Production Performance

The agreement between the farm owners and company was that all of the total
population from the farms will be bought back by the company at a fixed price of
PhP95.00, with a preferred weight of 1.55-1.65kg.
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Management Practices

The specific management practices implemented in the farm are all in

accordance with the standards set by the magnolia company. The operations done
throughout the cycle are overseen by the farm with the supervision of the partnered
company.

 House preparations and Bio-security

This activity involves thorough cleaning and repairing of the broiler

equipment and facilities needed in the operation. The broiler houses and all facilities
such as fluorescent lights, infrared heaters, and the blowers are checked and tested
regularly. Also, footbaths are always filled with disinfectant solution. These tasks are
usually performed by the laborers.
It is important to implement strict bio-security measures to prevent the
possible spread or entry of disease in the project. The houses, equipment and other
facilities are prepared one to two weeks prior to the arrival of the chicks. Chicken
manure underneath the broiler houses are removed one week after harvesting to
eliminate micro-organism build-up that could possibly contaminate the incoming
flock. Chicken feeders and water drinkers are also cleaned and disinfected thoroughly.

 Water and Feed

Prior to chick delivery, the quality and purity of water is checked to avoid the
spread of disease that may cause diarrhea, leading to dehydration and death in
younger flocks. Also, upon the placement of chicks, the distribution of feed and
water within the house are repositioned in the house in such a way that the chicks are
able to eat and drink immediately. A sweetener like sugar is added to the water which
helps replenish the depleted energy in the chicks, and may also stimulate the chicks to
consume feed. Aside from the addition of sugar, vitamin supplement is also added to
the water to boost the chick’s condition.
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 Preparation for chick arrival

The chicks are delivered to the farm together with the partnered company
representatives to record the actual physical head count of the newly delivered chicks.
Arrival of chicks in the farm is usually at night time or early in the morning to
minimize heat stress. Equipment in the house (i.e. feeders, drinkers, heaters and fans)
are properly arranged to allow chicks to maintain their body temperature without
dehydration and to find feed and water easily. Small amount of feeds are scattered on
the floor to stimulate their feeding behaviour. Drinking water with electrolytes was
also provided to the chicks to minimize transport stress.

 Brooding Stage

The brooding area is prepared using newspaper in every pen of the house to
provide warmth to the chicks and to keep them dry by absorb the droppings. Gallons
are filled with drinking water with electrolytes and placed in the pens. Gas brooder
are also provided as a source of heat for chicks to maintain proper temperature which
is 29-32˚C. Brooding stage is the most critical stage of the birds because they are
unable to regulate their body temperature within two weeks, thus during this period it
is necessary to maintain the optimum temperature for the chicks.

Dirt in the housing area is removed every day to prevent ammonia build-up. Fresh
and clean water is always made available to prevent stress and occurrence of disease.

 Growing Stage

At 15-20 days old, the blower or the exhaust fans are switched on to achieve
the required temperature of 19°𝐶 . The growing stage starts when birds are weaned
from the source of heat after 14 days.
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 Harvesting

Harvesting is the final stage of the broiler production. During harvest,

handling of birds is done by grasping both legs to minimize distress, damage and
injury. This is done by the labourers. The harvesting date is normally at 28-33 days
old and is scheduled by both the partnered company and the farm. Harvesting time is
scheduled between 5:00 PM to 6:00 AM depending in the weather condition.

 Feeding Management

All the feeds are provided by the supplier. On the average, the distribution of
the three types of feeds are: 7 bags per thousand of starter feeds are given during
brooding stage, 14 bags per thousand of grower feeds and 31 bags per thousand of
finisher feeds on the last stage of growing.

 Medication and Vaccination Program

Aside from proper housing and good nutrition, preventive medication and
vaccination are essential to keep the broilers healthy. The farm maintains vitamins
and electrolyte supplementation program which is followed throughout the growing
cycle. Adjustment is made when there are signs of disease among the birds.

 Air and Ventilated Program

All broiler houses have tunnel-ventilated housing. This is done to properly

control the temperature inside the houses. In addition tunnel-ventilated housing helps
to remove excess moisture, reduce bad odour, minimize dust, proper respiration, limit
the build-up of harmful gasses like ammonia and carbon dioxide, prevent heat stress
and reduce air-borne microorganisms and pathogens.

 Record Keeping

Record keeping is important because it serves as a basis for decision making.

It is done by the employees of the farm. Records, which include mortality, feeds
consumed, and average live weight, are kept on a daily basis. Keeping the data of the
farm throughout the entire growing period helps the management to track down the
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performance of the project and aids in making resolutions especially when production
parameters fall below standard.

 Payment of Collection

All of the birds coming from the farm are delivered to the designated dressing
plant of the magnolia company; it’s either in San Leonardo, Bataan, Tarlac and
Bulacan. Each truck contains 2,500 heads of chickens. The partnered company pays
the farm PhP95.00 per piece of the harvested birds.

MARKETING MANAGEMENT

At present, marketing of live chicken is not a problem since the farm has a
partner company which will be the one who will buy the chicken once it is ready to
harvest. The farm needs to make sure that they take good care the chicks until it is
harvested for them to meet the required ALW (ave.live weight).

Product, Place, Price and Promotion

Promotion Advertisement and Product distribution of the chicken will be done

by the partner company.

FINANCIAL MANAGEMENT

The Placid Farm does have 4 tunnel ventilated buildings that cost 16 million
per building. Then Magnolia Corporation supplies Feeds, animal health-care and
Cobb Broiler Chicks to the farm. The feeds are delivered by trucking service of their
partner company, the cost of feeds per bag is PhP1, 350 however, a 30% discount is
given to the growers. Cobb broiler chicks are sold at a fixed price of PhP19.00 per
head; their partner company also provides animal health-care product such like
vaccine, vitamin supplement and antibiotic for their chicken. Aside from the inputs,
the partner company is also providing Technical services such as broiler technician,
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veterinarian and farm manager. These employees visit the broiler farm twice a week.
The Farm itself does have a total of 14 people who work every production cycle,
except the people coming from magnolia.

ORGANIZATIONAL STRUCTURE

Magnolia Corporation Placido Farm

Farm Manager Flockmen/Labourers

Veterinarian Security

Broiler Technician Cook

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PLACIDO FARM
Resources and Counterpart of Contracting Parties
PARTNER COMPANY PACIDO FARM
 Feeds  Land
 Day-old-Chicks  Farm equipment
 Animal-Healthcare  Water supply
 Technical Services  Feed bodega
 Veterinary  Electricity
 Broiler Technician  Labor
 Farm Manager  Proper farm management
 Building

PLACIDO FARM
(Broiler Production)
Actual Broiler Production Flow Chart

Placement of Chicks

Brooding Stage
(Age of 7-14 days)
Feeding and
Medication
Program
Growing Stage
(Age of 14-28 days)

Harvesting
(Age of 28-33 days)
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PLACIDO FARM

(POULTRY AND LIVESTOCK SECTOR)

A CASE ANALYSIS

Point of View: Sheena Loraine Z. Espiritu

Problem Situation:

 Longer time delivery of chicks

Since the farm establishment, up to the present, the farm operates 6-7 cycles
per year with 40,000 birds per cycle. As the year goes by their production cycle was
lessen up to 5-6 production,

Cause of the Problem: High demand supply of chicken meat

Since the poultry production was in demand because there are a lot of farms
are already established in different places that Magnolia Company needs to supply.

OBJECTIVES:

 To identify solution that could fill the gap regarding the supply of chicks.

DECISION CRITERIA

CRITERIA DESCRIPTION WEIGHT (%)

Benefit and Cost Analysis The capability of the alternative to solve 40

the problem at the least cost

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Timeliness The capability of the alternative to solve 20

the problem immediately

Ease of Implementation Less conflict in the 20

execution of the alternative

Acceptability to the The alternative should be 20

Management convincing to management

Total 100

AREAS OF CONSIDERATION:

This case analysis aims to determine the strengths, weaknesses, opportunities

and threats that prevail in the environment of the company, and to evaluate the

external and internal factors affecting the flow of its operations. The SWOT Matrix

Analysis approach was used to identify available resources which can be utilized to

further reinforce the farm’s capabilities and stabilize its operations.

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SWOT ANALYSIS MATRIX:

STRENGTH WEAKNESS

Modern Technology
 Longer time of delivery
(Tunnel-Ventilated housing)

OPPORTUNITY THREAT

 Increasing Demand for Poultry

Products
 Occurrence of Disease Outbreak
 Established own hatchery to
supply the farm.

STRENGTH:

Modern Technology (Tunnel-Ventilated)

Proper ventilated housing is essential for profitable poultry. There are
basically five reasons why poultry should be ventilated: remove excess moisture,
minimize dust and bad odor, and limit the build-up of harmful gases like ammonia
and carbon and oxygen for respiration. Since the entire broiler farms are using Tunnel
Ventilated housing, problems like high mortality rate and decrease in broiler
performance during warm weather was minimized or avoided. They can also easily
manipulate or control the housing condition. This is particularly advantageous during
sudden changes in temperature or weather which is a critical factor for raising
chickens. Because the broiler farm uses this kind of modern machine, heat-related
stress and mortality in broiler flocks during period of high temperature has been
prevented.
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1.1 Photo above is the inside of one of the building in the farm

1.2 Photo below is the aerial shot of the farm

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WEAKNESS:

 Longer time of delivery

OPPORTUNITY:

 Increasing Demand for Poultry Products

The population of the Philippines hit 107,487,560 this year Combined
with an improving macroeconomic outlook, a growing middle class and a
transforming food retail sector, the outlook for the Philippine livestock, feed
milling and meat industries remains positive.

 Established own hatchery to supply the farm

Since the outlook for the Philippines is positive, there’s an increasing for
consumption of meat this year and for the following years.

THREAT:
Occurrence of Disease outbreak

The Asian strain of avian flu has been confirmed in poultry and wild birds in
several countries in the following regions. Asia, Europe, Africa and the Middle East.
This demonstrates of rapid and ongoing geographical spread of the virus. In many
cases bird’s flu can cause deterioration, pneumonia (inflammation of the tissue of one
or both lungs), and acute respiratory disease syndrome (where the lungs cannot
provide enough oxygen for the rest of the body).This disease already occur to the
Philippines and some of the poultry raisers was affected by increasing of mortality
rate lead to a net loss profit.
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ACTION PLAN AND RECOMMENDATION:

Strength: Modern Technology (Tunnel-Ventilated Housing)

Action Plan: Maintenance of Technology

Recommendation: The farm should check the fans and regularly maintain the tunnel
vents after every harvest, thereby making the cooling pads more efficient.

Weakness: Low supply of chicks and longer time of delivery

Action Plan: Look for other hatchery to supply their needs or allot a building for the
farms own hatchery.

Recommendation: The farm must seek new hatchery farm or built their own hatchery
farm in order to increase again their production cycle and to fill the gap of long
waiting time of delivery to their farms.

Opportunity: Increasing Demand for Poultry Production

Action Plan: Increasing Production through CTB’s

Recommendation: Because of the positive outlook in the Philippines in terms of

poultry production, the farm should create new partnership with other corporations.
This will help to increase the production as well as the income and also create new
prospects in the farm.

Opportunity: Established own hatchery to supply the farm

Action Plan: Open a hatchery building to sustain/fill up the gap of delivery

Recommendation: Having own hatchery will create/generate profit and will fill up
the gaps of delivery, also the insufficient supply of chicks in the farm.
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Threat: Disease Outbreak

Action Plan: Health and Sanitation Program

Recommendation: Bio-security measures must strictly implement to infections and

some possible outbreaks of disease. Visitors and employees regardless of purpose in
entering the vicinity of the farm and company must follow the prescribed protocol
which often requires changing clothes or taking showers, wearing coveralls and
disinfected boots, they also required to dip their shoes in the footbath or even the tires
of vehicle. Sanitation is maintained at all times in the farm to prevent possible
contamination of disease.
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REFERENCES

http://balinkbayan.gov.ph/products/159-chicken-broiler-production.html

https://www.scribd.com/document/323963572/Chicken-Broiler-Production-is-
One-of-the-Most-Progressive-Animal-Enterprises-in-the-Philippines-Today