Thursday, July 18, 2013

Feasibility Study of Eggnok Poultry Raising

Introduction

Most people’s mental image of egg production is that of a farmyard in which chickens are free to roam about, to fly, and to even roost in the trees. To the side of the yard is a chicken coop, where the chickens are free to enter, to leave, and to nest and lay their eggs. Then each day the farmer comes out with his or her basket and collects the eggs for market or personal use. While such a situation may exist on some individual small farms, nothing is further from the truth when it comes to the vast majority of farms engaged in commercial egg production.
            This feasibility study SINE Company is focused on egg production, making use of the Leghorn variety. Aside from the manifold points of beauty in type and color found in all varieties of Leghorns, their excellent productive qualities are valuable assets of the breed. 

Pre-operating Period

            This is the period when constant planning and preparation is evaluated based on the opportunity available ahead. It involves procurement of raw material input living qualified customer, preparation for the location of the building and purchasing of the materials and equipment to be used in the operation including the compliance of all the requirements needed like licenses and permits and most especially the allocation of fund for several purposes. It is the period when business partners will contribute their money and other resources as capital for the business. All other aspects of preparation will be used on the standard guidelines and existing regulation set by the government itself for smooth and effective performances of the business operation.

Operating Period

            This is the period when normal operation start. This stats the production process where production output is expected. This is the stage of pursuing what had been planned in the pre-operating period.

The manager is the head of the operation. he manages the entire operation of the business to ensure the productivity of the company by providing quality products and good services to customers. A technique for improvement in business operation will be executed during this stage. It is also the implementing period on the policies and guidelines of the company. However, the company must foresee on the characteristics of the company that night influence to the success of the operation.

Type of Business Operation

            Partnership is the chosen form of organization. It is a legal relation based on the expressed or implied agreement of two or more competent persons whereby they unite their money, property, labor or skill on some lawful business as principal for their joint profit. It is not only joint undertaking in the share of profit, but also in the loss. Profit will be shared y the partners on an agreement. 


Position
Responsibilities
Qualifications
Salaries/Benefits
Manager
·         performs different management functions like planning, organizing, controlling, and directing
·         supervises all activities in the area
·         a graduate in Agriculture with experience in the area of egg production
·         efficient and responsible
·         P6,000/month
·         SSS
·         Phil health (both deducted from salary)
Secretary
·         assists in all the activities in the area
·         responsible for the written reports of the company
·         updates the latest news
·         4-year/2 year graduate in Office Ad
·         computer literate
·         fast and reliable
·         with pleasing personality
·         P5,700/month
·         SSS
·         Phil health (both deducted from salary)
Caretakers
·         maintain the cleanliness at the poultry house and surroundings
·         monitor all activities in the area like feeding, and giving vaccines and vitamins
·         harvest the eggs
·         skilled worker in egg production
·         responsible and reliable
·         residence near the poultry
·         P4,500/month
·         SSS
·         Phil Health (both deducted from salary)


Timetable of the Project
(Gantt Chart)

Activities Planning for the business
Jan 4 wks
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Survey of the location

2
wks










Research of the product

1 wk










Sourcing of capital


4 wks
2
wks








Acquisition of land




4
wks







Acquisition of permits & licenses





2 wks






Renovation of building





2 wks






Purchase of equipments






2
wks





Purchase of material inputs






1
wk





Hiring of personnel






1
wk







Marketing Aspect

            Food prices continue to climb, particularly for high-protein foods, and consumers are constantly searching for ways to reduce their food bill. One way is to include more eggs in the diet. Comparing protein foods on a pound-for-pound basis, eggs cost about 4.00 (Php) a pound when large eggs are selling for 3.85 (Php) a dozen. It is difficult to purchase any other high-protein food-meat of fish-for this low price. The expenses involved in marketing poultry and its products are comparatively small, considering these are of high value, small in bulk and can be shipped a considerable distance without spoilage and with little shrinkage, a variety of markets are open to the poultry raisers’ location and production. He may choose any of the following:
v  Direct selling to consumers. The method ensures the largest revenues, as all expenses of commission and extra handling is eliminated. The most satisfactory way of selling directly to consumers is to supply local hotels, restaurants, bakeshops, sari-sari stores, as they usually contract the entire output and are willing to pay good price. It is much easier to ship the product to one place at certain specific times.
v  Direct selling to retailers. This marketing system is usually limited to selling both eggs and dressed poultry directly to some retail grocers who live in small cities of towns, who are willing to get the products and pay a good price. Knowing they are perfectly fresh (eggs), the retailers can sell them to small hotels or restaurants.
v  Marketing poultry cooperatively. This is newest development in marketing procedure. The growth of the marketing system has been rapidly changing for the past years in the country. The reason for the development of the cooperative marketing was belief on the part of the producers that they were not getting the full value for their poultry and by product from local buyers. Much of the poultry products now sold through the cooperative are consigned directly to them by producers.
The exact market to select depends upon the amount and character of the products for sale. The direct selling to consumers or wholesaler is best adapted to poultry enterprise with a large and regular output. On the other hand, the retail regular output suitable for the poultry raisers with a limited supply of poultry products.
Proper marketing of poultry product is one of the most important factor in selling eggs and meat. Gearing the production can take full advantage of the situation. Know the prices in the local and distant markets will be the best outlets. Know, also, the different seasons of celebrations in the cities, towns, and barrios because you can sell the poultry products during these celebrations.
Surplus eggs will be distributed in neighboring cities, such as Panabo City and Island Garden City of Samal, because they are accessible.

Marketing Mix

Product
            The egg is one of the most nutritious and versatile of human foods. It is valuable as a source of protein. In fact, its protein is used as the standard against which the quality of other food proteins is measured. One egg contains about six to seven grams of protein. People of all ages need adequate protein for building and repairing body tissues.
Price

            Food prices continue to climb, particularly for high-protein foods, and consumers are constantly searching for ways to reduce their food bill. One way is include more eggs in the diet. Comparing protein foods or pound for pound basis, eggs cost about 4.00 (Php) a pound, where large eggs are selling for 3.85 (Php) a dozen. it is difficult to purchase any other high-protein food-meat or fish-for this low price.

Placement
The proposed project will be established at Purok 1 Banlas Heights Toril, Davao City. This is based on the conclusion that the proposed area has all the requirements in poultry production based on the research we conducted. There are no poultry houses focusing on egg production existing in the area. We decided to buy the 500 sq.m.land, with an  old building for raising broilers, for our business.

Promotion

Banners and leaflets are the ways to promote or advertise our product since print ads cost less. Also, they can easily catch the attention of potential customers.


TECHNICAL
The breeds and varieties of domestic chickens known today are generally believed to have descended mainly from  the Red Jungle Fowl (Gallus bankiva,  also called  Gallus gallus) of Southeast Asia where it still  exists in the wild. Domesticated chickens may have been kept in India as long ago as 3,200 B.C. and records indicate they were kept in China and Egypt as early as 1,400 B.C. The earliest domestication's of fowl were mainly for cockfighting rather than for food.  Cockfighting were suppressed in the Western World and replaced by poultry  exhibition before the 18th century. Poultry exhibitions started in America in 1849. Interest in these shows grew and  numerous breeds and varieties were and continue to be developed, leading to the large number of varieties now is existence.

There are approximately 175 varieties of chickens grouped into 12 classes and approximately 60 breeds. A class is a group of breeds originating in the same geographical area. The names themselves  Asiatic, American,  Mediterranean, and so on-indicate the region where the breeds originated.

Structure of the egg

The egg is a biological structure intended by nature for reproduction. It protects and provides a complete diet for the developing embryo, and serves as the principal source of food for the first few days of the chicks life. The egg is also one of the most nutritious and versatile of human foods.
When the egg is freshly laid, the shell is completely filled. The air cell is formed by contraction of the contents during cooling and by the loss of moisture. A high quality egg has only a small air cell. The yolk is well-centered in the albumen and is surrounded by the vitelline membrane, which is colorless. The germinal disc, where fertilization takes place, is attached to the yolk. On opposite sides of the yolk are two, twisted, whitish cord-like objects known as chalazae. Their function is to support the yolk in the center of the albumen. Chalazae may vary in size and density, but do not affect either cooking performance or nutritional value.
A large portion of the albumen is thick. Surrounding the albumen are two shell membranes and the shell itself. The shell contains several thousand pores that permit the egg to "breathe."

Composition
An average-sized egg  weighs approximately 57 grams (about 2 ounces). of this weight, the shell constitutes 11 percent; the white; 58 percent;  and the yolk,  31 percent. Normally, these proportions do not vary appreciably for small  or  large eggs. The percentage composition of the edible portion is:

Percent          Water      Protein      Fat     Ash
Whole egg     74            13              11      1
White               88             11               ...        ...
Yolk                48             17               33      1


Essential Nutrients

       Eggs are especially valuable  as a source of protein. In fact, egg protein is used as the standard against which the quality of  other food proteins is measured. One egg contains about 6 to 7 grams of protein. People of all ages need adequate protein for building and repairing body tissues.
         The fat in the yolk is so finely emulsified that it is digested easily, even by infants. The ratio of unsaturated to saturated fats is about 2 to 1. This is considered very desirable. Oleic acid is the main saturated