Feasibility Study Essay

* 1. A Feasibility Study on the Establishment of a Semi-Commercial slovenly persons call down in Alfonso, Cavite The LGD originates * 2. CHAPTER I INTRODUCTION* 3. In the Philippines, pork is champion of the basic foods which Filipinos eat. It is one of the stovepipe seminal fluids of protein needed by the body to be strong and healthy. That is why a need for a set up arises. existence * 4. Hog raising commercial enterprise has been a very popular and estimable bank line in the Philippines. In fact, Hog raising crease had rule the swine industry as a healthy and viable commercial sector.Even in our traditional Filipino Festival/Occasion, Filipinos always crave for cuisine with porc. Di kompleto ang Okasyon kung walang handang baboy. * 5. This statement had marked our traditional way of celebrating special occasions in our lives, and it proved our undying taste for pork. The Philippine Department of Agricultures vision is to modernized sm onlyholder agriculture and fishe ries to a diversified rural providence which would be dynamic, technologically advanced and internationally competitive.* 6. As of July 2008, it was recoded at 35.6% of the crusade force, roughly around 12 million battalion, atomic number 18 employed in the agriculture industry, which allows the hunting and fo residery sectors. The situation being frequently(prenominal), the agriculture sector aims for security, sustainability of the infixed resource base, social equity and global competitiveness. * 7. The Philippines takes specific measures to achieve these goals by dint of the protection and development of piddlesheds proper management of agricultural land and water resources insane asylum of bio gasolene facilities providing marginalized sectors preferential access to productive assets and providing essential measures and support services.* 8. pot The LGD Farms envisions itself as a bull raising farm promoting and maintaining environmental kindly identity to its emp loyees, customers and to to the community. LGD Farms in addition envisions itself to be a naturally inde pendent source of BioGas which apprise be used as a substitute for LPG to be used in the farm. The LGD Farms also envisions for the expanding upon of grab appendage.The LGDs imagery/Mission Statement * 9. Mission The LGD Farms go out create an environmentally amiable identity finished infrataking the proper and economical way of do in disposals to avoid harming and distorting opposites. The LGD Farms allow for introduce its environmental friendly BioGas speediness done using the hogs waste, by converting these waste into useful mathaine gas. * 10. The LGD Farms allow for tolerate expansion afterfive years through constructing additional building and adding foster stocks for the purpose of increasing their productiion to supply magnanimousr amount in the occupy supply gap* 11. CHAPTER III tolerate BACKGROUND* 12. lift of the Proposed crinkle LGD FarmsNature of the contrast Hogs ProductionType of care brass Sole ProprietorshipLocation of the project Kaysuyo, Alfonso, CaviteProject Background * 13. reservoir of Capital Funding of LGD Farms public process and opposite financial affects go forth be sourced from the savings of the possessor. Mr. Jandel A. Gimeno go out invest P 4,600,000 in the business. * 14. Proposed Name of the Business LGD Farms exit be the name of the business as agree upon by the proponents. The proponents adopted the letters E and J from the name of the proprietors p arnts, Efren and Jovita Gimeno. * 15. The project pull up stakes adopt a sole proprietorship face of business organization. Sole proprietorship type of business organization is one which is owned and run by an individual and where on that point is no legal distinction between the owner and the business. Type of Business geological formation * 16. All assets of the business argon owned by the proprietor and all the debts of the business are proprietors debts and he/she mustiness pay it from his/her personal resources which volition result to unlimited liability.* 17. The proponents opt to form the business down the stairs sole proprietorship type of business organization as they see it fit considering the nature and capital requirements of the project. Moreover, it is subject to fewer regulations inappropriate the other type of business organization, the owner has full autonomy with necessitate to business decisions. * 18. The proposed stance had been chosen by the prponents considering such factors as the accessibility of resources, accesibility to the potential customers, location cost and the environment of the business which fall under agro industrial land type as being classified by the DENR which is the only approved land type and location for the establishment of a Hog Farm. Location of the Firm* 19. gibe to the very nature of the proposed project, which is in line with the livestock type of busine ss, a none-residential area has been the prime considerateness of the proponents in choosing the site of the business. The LGD Farms exit be determined at Kaysuyo, Alfonso, Cavite. * 20. counseling and Personnel Feasibility Summary LGD Farms allow implement a participatory style ofmanagement. This manner that all employees will have the privilege and will be allowed to infix in the decision-making concerning the farm. The employees as well as the general manager will peform multi-tasking jobs for easy flow of operation.* 21. CHAPTER IVORGANIZATION AND MANAGEMENT feasibleness* 22. With moot to the business operations, the proposed business will have a total of quartette (4) persons including the General Manager, Technical Operations Manager and two (2) Farmhands. Each of them must have knowledge about the production processes of hogs. They will be learn and oriented properly and will be given some seminars regarding hog farming.Administration and Management Feasibility * 23 . Management Proposals The General Manager will be the one to plan and will be in charge of the boilersuit supervision of the farm. He will be the one to screen the applicants to be recruited and hired. The Technical Operations Manager will oversee the efficiency and military capability of the farmhands. He will also be responsible for the general feel for of the bulls eyes, maintaining the herd health and environment of the downs.* 24. Organizational Chart* 25. In an organization, policies and principles scat an important role because these back up organization to become more efficient and effective. These will guide the whole business and help to achieve the troupes goals.Company Policies * 26. The proprietor will be the general manager of the firm. His remuneration will be through withdrawals from the business. 20% of the Net income will be drawn from the farm.Policies on Drawings * 27. Policies on Hiring LGD Farms will announce job vacancies. The proposed business will re cruit and employ workers on the basis of their qualifications of work. Referrals from trusted throng will also be entertained. Qualified applicants will then recall the necessary requirements to the management such asBarangay, Police and NBI ClearanceCopy of Birth CertificateHigh cultivate/College Diploma/Form 137Medical CertificateDrivers License* 28. Security Measures The E&J Farm will construct fence around the farm to impede the entrance of unauthorized person despite the safety of the location against feasible threats. * 29. Policies on Days of Work Employees will work six (6) eld a week The compensation will be ona daily basis. The employees are entitled to one (1) rest daytime a week. * 30. Work Schedule All employees are entitled to one (1) rest day. The Farmhand 1 will take his rest day on Saturday and the Farmhand 2 will take his rest day on Sunday. The Technical Operations Manager will take his rest day every Friday. * 31. PhilHealth, PAG-IBIG, SSS and 13th month p ay will be provided for all employees.Seminars/ Trainings Seminars and trainings will be conducted for the farmhands to gain additional knowledge that will enhance their abilities and skills to become more productive and more efficient.Employee Benefits* 32. CHAPTER VMARKETING FEASIBILITY* 33. This chapter will discuss all the marketing aspects of a Hog Farm. The discussion will include the general market description, the target markets, the general marketing practices, demand, supply, the demand supply analysis, the propose marketing program and the marketing strategy. The data and other figures were gathered through research using both primary and petty(a) data. MARKETING FEASIBILITY * 34. The primary data came from the results of the conducted survey by the proponents and the secondary winding data were gathered from several government agencies and offices such as peasant Veterinary Office (PVO), Department of Environment and Natural Resources (DENR), Bureau of rustic Staistic s (BAS), Department Of Agriculture (DA), and Alfonso Municipal Office.* 35. The use of marketing strategies and promotional activities such as word of mouth advertising, referrals and transit advertisement are passing capable to increase the number of customers and to increase the level of revenue. * 36. Alfonso, Cavite is an upland town situated at Southwest portion of the province. It is one of the highly recommended place for the establishment of Hog Farms as approved by the tike Veterinary Office. According to Alfonso Zoning Map, the said town provides preferable locations for the possibility of opening business operations in line with agriculture.MARKET DESCRIPTION* 37. According to the Provincial Veterinary Office, there were about 20 commercial farms and 70 backyard farms run in areas of Alfonso, Indang, Mendez, Tagaytay, and Silang, Cavite as of 2009 Provincial Veterinary Office official count. In Alfonso, there are about 3 commercial farms and 20 backyard farms. * 38. The proposed business will be established at Kaysuyo, Alfonso, Cavite. The target market will be thepublic markets of Alfonso, Tagaytay City, Mendez, Indang and Silang, Cavite. The selected five towns of Cavite has a total of 130 spirit vendors operating in their respective public markets. TARGET MARKET * 39. set back 1. Freaquency of Selling operation in Silang, Tagaytay City, Indang, Alfonso and Mendez, Cavite * 40. Table 2. Quantity of stubs sold per exchange operation * 41. Table 3. Source of porc Supplies of Vendors* 42. Table 4. Availability of warmness supplies* 43. Table 5. Vendors willingness to buy* 44. GENERAL MARKETING PRACTICES The LGD Farm will seek accreditation from Cavite Livestock bird Farming Association combine (CALIFPAI), Department of Environment and Natural Resources (DENR) and Provincial Veterenary Office (PVO). The farm will follow all the rules and regulations and will comply with the standards set by these organizations and agencies to regard the proper operations of the farm. * 45. The farm will also get updates and reviews and other useful information for better hog farm operation. As to operation security, The LGD Farms will secure its necessary requirements such as the Certificate of Non-Coverage (CNC)/ environmental ossification Certificate, Licenses and business permits.* 46. The farm will also actively participate on some different livelihood programs such as Hog Raising Seminars, Civic Welfare Programs and other Community Development associate activities to gain market consciousness. By these practices, the farm is expecting to establish a exhaustively public relations with different haulers and meat vendor to whom the farm will transact with. * 47. DEMANDHistorical Demand for pork in Selected Five Towns in Cavite (in kilograms) * 48. project Demand for Pork in Selected Five Towns in Cavite (in kilograms) * 49. Historical bring out for Pork in Selected Five Towns in Cavite (in kilograms)SUPPLY * 50. Projected Su pply for Pork in Selected Five Towns in Cavite (in kilograms* 51. DEMAND SUPPLY ANALYSIS* 52. efficiency TO SELL* 53. The farm will be advertised through word-of-mouth promotion, referrals and transit advertising. It will also join CALIFPAI (Cavite Livestock Farming Poultry Association Incorporated) to meet representatives of various sectors including Department of Agriculture. Proposed MarketingProgram * 54. The local anaesthetic government officials of Alfonso will also be a great help since the proposed business will contri plainlye for the betterment of the community. LGD will also plunge itself in organizing seminars/workshop for other hog raisers and for those who aspire to put up their own hog farms. This will also serve as a promotion of the farm.* 55. Growing Period and Feed Consumption Average cursory Gain- This Refers to the average gain in weight of pigs in kilograms per day. Weaners should have an ADG of at least .350 kg. And fatteners should have an ADG of .800-.8 25 kg. The higher the ADG the better because it means faster increment of pig and raze fattening catch. COMPETITIVE ADVANTAGE * 56. Feed modulation Ratio- This refers to the amount of tends consumed by the pig per kilogram gain in weight. The lower the FCR the better. It means lesser feeds per gain. Weaners should have an FCR of 1.5 and fatteners should have an FCR of 3.0.* 57. The LGD Farms will use tarp in its introductory stage as well as passageway advertising, which means the use of vehicles to carry the advertising material for the clients to be aware of the existence of the proposed business. Deliveries to clients will be available everyday.MARKETING STRATEGY * 58. The LGD Farms will also reach out to different charitable institutions such as orphanage, churches and government hospitals, pilot ladder and organizations. Help will be extended to those chosen charity by means of goods and financial help. * 59. CHANNELS OF DISTRIBUTION The products will undergo channels of distribution. These will be done by the E&J Farms through selling of hogs to slaughter houses and haulers which will serve as the middlemen or resellers. Next, the slaughter houses will deliver the meats to different public markets in selected towns and metropolis for retailing purposes. * 60. These group of meat vendors wiil sell the meats to household who are considered as the consumers/end-users of meats for final consumption purposes.* 61. CHAPTER VIPRODUCTION/TECHNICAL FEASIBILITY* 62. The proposed business LGD Farms falls under a production type of business providing the resellers quality pigs for their reselling purposes, particularly those meat vendors and even haulers in different market in Cavite, especially in Alfonso and near-by towns. LGD will establish 50 sow level hogs farm, producing 100 heads of hog a month. PRODUCTS * 63. Avariety of Landrace strains originated from famous Danish Landrace hogs which were developed in Denmark in 1895. The Landrace is characterized by its long body length, short legs, and medium to large drooping ears. Landrace swine is meaty on the food especially on the rail. Their hams are plump but trim. Their sides are long and uniform in depth. stock breeder STOCKS * 64. Landrace sows are prolific and are known to be excellent mothers and having a good litter size. This breeds sows have been known for their milk producing abilities, reaching their top milk after five weeks of lactation which is much latter when compared to other breeds.* 65. Large White is a white-colored meat type of pig with medium, erect ears, curved back and body in eat forward. The face is slightly dished. It is fast growing, a good feed converter, highly prolific and excellent milkers with superior mothering ability. Its carcass is also suited for bacon production. It can adapt well in confinement but not in rugged condition. * 66. Breed the sows.FarrowingWeaning of pigletsPiglets in the nurseryTransfer to fattening sectionHogs at market weightPR ODUCTION emergence * 67. Purchase of Piglets.Disinfection and Quarantine. Transfer of Purchased piglets to the nursery pen.Transfer to the Fattening Section. Hogs at market weight.ALTERNATIVE serve well (1) * 68. Breed the sows.Farrowing.Weaning of piglets.Piglets in the nursery.Piglets at market weight.ALTERNATIVE PROCESS (2) * 69. PROJECT SITE* 70. The first factor that must be considered is the availability of resources or location where the project will be situated. Other considerations also include the location cost and other legal requisites and also for all of this to be possible, a non-residencial area must be chosen as the location of the business for it to operate. * 71. PROJECT SITE DESCRIPTIONThe proposed project, LGD Farms will be located at Kaysuyo, Alfonso, Cavite. * 72. Building The E&J Farms will construct three study buildings which would be essential for the operation of the farm, the Dry pen building, Farrowing pen and nursery pen building and the Fattener pen building.BUILDING AND FACILITIES * 73. Dry Pen BuildingFarrowing and Nursery Pen BuildingFattener Pen BuildingHolding PenStorage RoomArtificial Insemenation LaboratoryFarm House* 74. LGD Farms has a biogas facility that treats pig wastes and revert enough methaine gas that is used forcooking at the farm house. This facility has made the commercial farm environmentally friendly as it minimizes pig odors from farm wastes. Also, after biogas processing of effluent wastes, wastewater is write downd to wet the grass paddocks within the farm premises.BIOGAS FACILITIES * 75. The farm will create no waste but pieces of plastic packaging of medicines for hogs, that will be displace properly on a trash bin. The pig waste will undergo the biogas facility that treats pig waste and generate enough methaine gas that is used for cooking at the farm house. WASTE AND WASTE organization* 76. This facility has made the commercial farm environmentally friendly as it minimizes pig odors from farm wastes. Also, after biogas processing of effluent wastes, wastewater is discharge to irrigate the grass paddocks within the farm premises. * 77. The quality of each pig will be maintained through proper care and treatment. dominate of virus should be taken into consideration as to avoid diseases. The farm will have a record of every pig for supervise and evaluation purposes. This will be done from the dry period to the birth day for the sows and from the day 1 of the piglets to market weight for fatteners.QUALITY CONTROL * 78. thither will be a technician for the sows from the supplier of the parent stocks and a feed technician from the supplier of the feeds. Both of them will serve as farm advisor on an on-call basis.* 79. CHAPTER VIIFINANCIAL FEASIBILITY* 80. not bad(p) REQUIREMENTSCASH P 154,178.50PROPERTY AND EQUIPMENT Farming Tools And Equipment 50,080.00 obstetrical delivery Equipment 270,000.00Office Equipment 18,200.00Furniture And Fixtures 18,720.00INVENTORIESFarm Suppl ies P2,401,136.50Office Supplies 485.00Land 450,000.00Pre-Operating spending 17,200,00TOTAL CAPITAL REQUIMENTS P4,600,000.00 * 81. Selling price is computed using statistical parabolic projection method.Sales are 100% of the yearly production.Gas and oil expense, promotion and advertisement, repair and maintenance are fabricated to increase by 5% annually.Contingencies are 3% of realize sales.Drawing is 20% of net income.OTHER FINANCIAL ASSUMPTIONS* 82. Other benefits like seminars and trainings are assumed to increase by 5% annually.Audit fees, permits and endorses are assumed to increase by 5% annually.The initial capital requirement is good for 3 months consumption.Production will be maintained at 100 heads per month for thenext 5 years. * 83. Pre-Operating Cash FlowCash Inflow Capital Contribution P4,600,000.00Cash Outflow Farm Tools And Equipment 50,080.00 Delivery Equipment 270,000.00 Office Equipment 18,200.00 Furniture And Fixtures 18,720.00 Farm Supplies 2,401,136.50 Of fice Supplies 485.00 Land 450,000.00 Building And Facilities 1,222,000.00 Pre-Operating Expense 17,200.00Net Cash Flow 154,178.50* 84. The E&J FARMS Pre Operating Statement Of monetary PositionASSETSCURRENT ASSETS Cash And Cash Equivalent 154,178.50Inventories 2,401,621.50NON CURRENT ASSETSPROPERTY AND EQUIPMENT 357,000.00BUILDING AND FACILITIES 1,222,000.00LAND 450,000.00OTHER ASSETSPre Operating Expense 17,200.00TOTAL ASSETS P4,600,00.00LIABILITIES AND proprietor EQUITYOWNERS EQUITY P4,600,000.00TOTAL LIABILITIES AND OWNERS EQUITY P4,600,000.00* 97. CHAPTER VIIISOCIO ECONOMIC FEASIBILITY* 98. This chapter will discuss the different sectors that would benefit from the proposed business. The purpose of put up a business is not just to generate profit but to give importance to social and economic benefit that it can provide.SOCIAL desirableness * 99. The proposed business will be located at Kaysuyo, Alfonso, Cavite. 72% of its residents are engaged in agriculture, taking advantage of its good location which best suits the proposed business. The said business will increase rate of employment through providing job opportunities to those people who were unable to attain higher education. * 100. In putting up a business, registration of business is necessary to have permits and license from the government office. These, along with taxes are then paid as the business operates. Taxes form part of the government revenues that help to support the needs of the public. cast up IN GOVERNMENT REVENUE* 101. The proposed business will employ people who have knowledge about agriculture preferably those who are life sentence within the adjacent area of the location of the proposed business. These employees will receive sensible compensation according to their qualifications and performance. Salaries are based on the minimum hire set by the government.GENERATION OF EMPLOYMENT * 102. Increase in population will result in increase in demand for food, which also means an incr ease in demand for pork in the area. With the continuous operation of the business, the employees will be helped to uplift the standard of their living.DEVELOPMENT OF RELATED STUDY* 103. In order for the business tooperate legally, it must comply with the government requirements as followsMayors Permit, Business Permit, Certificate of Non-Coverage and other Municipal Licenses.Environmental Compliance CertificateRegistration with the SSS, Philhealth and PAG-IBIG.Registration with Bureau of Internal Revenue.LEGAL ASPECTS * 104. It will satisfy the customers need.It will ensure the customers the of the Farms product.OTHER BENEFITS* 105. CHAPTER IX CONCLUSION* 106. After studying the different aspects in establishing a Semi-commercial Hogs Farm, proponets concluded that the study is feasible and viable. The study shows the initial investing of the proposed business will be P4,600,000 with a minimum payback period of 2.54 years. * 107. The increase in the demand for pork in Alfonso, Men dez, Indang, Silang and Tagaytay City Cavite shows thatt there is still a need for the proposed business. Thus, the business is profitable.