CHAPTER I
Hog (Sus scrofa) production is very popular here in the Philippines.
It gains large profit for a farmer and it is also a good source of protein. Demand is
growing, in line with the increase population and meat consumption. On the
supply side, there is a deficit in pork.
Domestic hog production has been rising in both backyard and modern
commercial farms, and it is very easy to care and manage. They play a vital role in
the development and growth of our agriculture and economy.
Management and marketing of hogs are very important.
Despite the challenges facing the swine industry (e.g. diet
relying heavily on expensive concentrates; susceptibility to
numerous diseases and parasites), still many people are
venturing into this enterprise, in a reason that the price of
pork in the market is still high.
CHAPTER I
This project will be conducted to meet and satisfy
the demand of pork in the local market.
CHAPTER I
OBJECTIVES
This project will be conducted for the following objectives:
1. To apply the knowledge learned from school into actual
agribusiness venture.
2. To have an experience in production and marketing of
hogs.
3. To provide products and good services to the consumer.
4. To gain profit from the business.
CHAPTER I
MARKET STUDY
Table I shows the demand, supply and shortage in Palawan. It is shown in the table that
there is an increasing demand for pork from 2012 to 2017.
Demand, Supply and Surplus/Shortage of Pork in Palawan from 2012- 2020
Table I
Human Per Capita
Year Demand Supply Shortage
Population Consumption
2013 1, 025, 511 4.16 4, 266, 126 2, 880, 280 -1, 385, 846
2014 1, 047, 885 4.16 4, 359, 202 2, 953, 720 -1, 405, 482
2015 1, 070, 259 4.16 4, 452, 277 2, 027, 120 -1, 425, 157
2016 1, 092, 633 4.16 4, 545, 353 3, 100, 520 -1, 444, 833
2017 1, 115, 007 4.16 4, 638, 492 3, 173, 920 -1, 464, 509
CHAPTER II
A. MANAGEMENT ASPECT
Form of Business Operation
The project will be managed by the practicum student, where
he will be responsible in carrying out all activities concerning
hog production and management. The adviser will serve as the consultant to
assist and guide the practicum student in the implementation of the project. The
laborer will be hired when the manager is out to transact business related to the
project.
CHAPTER II
Manager Adviser
Family Member
or Laborer
Figure 1. Organizational structure of the project
CHAPTER II
Table 2. Calendar of Activities
Activities Date
Building and preparing of the pig pen July 9, 2018
Disinfecting the pig pen July 11, 2018
Canvassing of prices for feeds and
July 14, 2018
biologics
Purchasing stocks, feeds and
July 16, 2018
biologics
Loading of stocks to the pen July 19, 2018
July 19, 2018
Care and Management of the pigs
Oct. 22, 2018
July 19 to
Feeding of pre-starter pellet
July 31, 2018
1st deworming and giving of
July 22, 2018
antibiotics
Injecting of vitamins July 26, 2018
July 31 to
Feeding of starter pellet
Aug. 28, 2018
CHAPTER II
Aug. 29 to
Feeding of grower pellet
Sept. 4, 2018
2nd deworming and giving of
Sept. 8, 2018
antibiotics
Injecting of vitamins Sept. 25, 2018
Oct. 5 to
Feeding of finisher pellet
Oct. 24, 2018
Canvassing of the buyers Sept. 25, 2018
Marketing of Hogs Oct. 24, 2018
Follow- up cleaning of the pig pen Oct. 26, 2018
CHAPTER II
B. TECHNICAL ASPECT
Project Description
The project site is located at Caramay Highway Pulot Center, Sofronio Española,
The project location is about 300m distance from the highway and accessible to
transportation with electricity and water supply. Figure below shows the location
of the project.
CHAPTER II
CHAPTER II
Production Process
The following practices will be done during the implementation of the
project.
Building and preparing the pig pens. The area of the piggery house is
about 3 X 6 meters and will be constructed with galvanized iron sheets as
roofing, cemented floor and lumbers as sidings.
Cleaning and disinfecting the pig pens. The pens will be cleaned
thoroughly using detergent soap and will be disinfected using chlorine.
Purchasing the piglets, feeds and other biologics. The practicum student
will buy weanling from Barangay Barong- Barong, Brooke’s Point, Palawan at
Php 2, 700.00 per head. The commercial feeds and biologics for hogs will be
bought from Uno Commercial, Barangay Pulot Center, Sofronio Española,
Palawan, which is almost one kilometer away from the project site.
CHAPTER II
Feeding the animals. The weanlings will be fed in dry form from the start
until the end of the project. The commercial feeds that will be given to the hogs
are; Pre- Starter, Starter, Grower and Finisher. The type of ration will be adjusted
according to their age. Feeding will be done three times daily. Fresh and clean
water will also be given to the animals.
Care and management of the pigs. Upon the arrival of stocks, care and
management will be done properly.
Deworming of the pigs and Injecting of vitamins. Deworming will be done
on July 22 and September 8, 2018. Injecting of vitamins will be done on July 26
and September 25, 2018 during the whole operation, to ensure the health of the
hogs.
Follow up cleaning of the Pigpen. After 4 months of operation, the pigpen
will be cleaned and disinfected to prepare the pens for the next batch.
CHAPTER II
C. MARKETING ASPECT
After four (4) months of operation, the hogs will be sold live to
the contact buyers at Php 110.00 per kilogram. Payment will be on
cash basis.
CHAPTER II
Table 3. Sales of hogs
Average
No. of Heads Weight in Unit price/kg Sales/Head (P)
(kg)
Total
10 heads 93.6 ₱110.00 ₱102,960.00
CHAPTER II
Marketing Channel of Products
The hogs will be sold personally by the student to the
buyer. Below is the flow of marketing operation.
Producer Buyer
Figure 3. Marketing Channel of the Products
CHAPTER II
D. FINANCIAL ASPECT
All the expenses and sales incurred in the project will
be recorded for financial analysis, which include the working
capital, income statement, cash flow statement, balance sheet
and return on investment of the project. The following tables
and exhibits show the economic feasibility of the project.
Table 4. Cost of housing
Materials Quantity Unit price (P) Total Cost (P)
Hollow blocks 150 pcs ₱10.00 ₱1,500.00
Galvanized iron sheets 10 sheets ₱250.00 ₱2,500.00
Cement 10 bags ₱260.00 ₱2,600.00
Nails 1 kl ₱95.00 ₱95.00
Pig Drinker 3 ₱50.00 ₱150.00
PVC Elbow (1/2) 3 ₱12.00 ₱36.00
Teflon 1 ₱20.00 ₱20.00
Feale Adapter 3 ₱12.00 ₱36.00
Total ₱6,937.00
Table 6. Cost of feeds consumed
Feeds Quantity Unit Price (kg) Total Cost (P)/kg
Pre- Starter
150 ₱21.60 ₱3,240.00
Pellet
Starter Pellet 300 ₱26.00 ₱7,800.00
Grower Pellet 600 ₱26.90 ₱16,140.00
Finisher Pellet 700 ₱24.70 ₱17,290.00
Total ₱44,470.00
Table 7. Cost of biologics and other supplies
Items Quantity Unit Price (P) Total Cost (P)
Dewormer with
100ml ₱350.00 ₱350.00
antibiotic
Vitamins 100ml ₱280.00 ₱280.00
Detergent powder 3 pcs ₱9.00 ₱27.00
Pen 1 pc ₱10.00 ₱10.00
Notebook 1 pc ₱12.00 ₱12.00
Chlorine 250g ₱24.00 ₱6.00
Syringe with
2 ₱10.00 ₱20.00
Needles
Total ₱705.00
Table 8. Cost of Labor
Activities No. of hours Rate/Hour (P) Total Cost (P)
Building and preparing the pig pen 24 ₱25.00 ₱600.00
Disinfecting the pig pen 2 ₱25.00 ₱50.00
Canvassing of prices for feeds and
2 ₱20.00 ₱40.00
biologics
Purchasing stocks, feeds and
3 ₱25.00 ₱75.00
biologics
Loading of stocks to the pen 2 ₱15.00 ₱30.00
Care and Management 192 ₱25.00 ₱4,800.00
Deworming and giving of antibiotics 2 ₱15.00 ₱30.00
Injecting of vitamins 2 ₱20.00 ₱40.00
Canvassing of the buyers 2 ₱20.00 ₱40.00
Marketing of Hogs 4 ₱20.00 ₱80.00
Follow Up cleaning 2 ₱25.00 ₱50.00
₱5,835.00
Table 9. Miscellaneous and other expenses
Particulars Total Cost (P)
Snacks ₱500.00
Transportation ₱1,000.00
Water bill ₱790.00
Total ₱2,290.00
Table 10. Depreciation cost
Life Annual
Cost of Monthly/Daily
span Depreciatio
Pigpen Depreciation Cost
(Years n cost
(P) (P)
) (P/Years)
3 6, 937.00
6,937.00
years 3 760.00
Exhibit I
PROJECTED DEVELOPMENT COST
Hog Production and Marketing at Caramay Highway Pulot Center,
Sofronio Española, Palawan
July 2018 to October 2018
Working Capital Total Amount (P)
Housing materials ₱6, 937.00
Stocks ₱27,000.00
Feeds ₱44,470.00
Biologics and other supplies ₱705.00
Labor ₱5,835.00
Miscellaneous and other expenses ₱2,290.00
Total working capital
Total project cost ₱87,237.00
Exhibit II
PROJECTED INCOME STATEMENT
Hog Production and Marketing at Caramay Highway Pulot Center,
Sofronio Española, Palawan
July 2018 to October 2018
REVENUE Amount (P)
GROSS REVENUE ₱102,960.00
LESS: OPERATING EXPENSES
Housing materials ₱760.00
Stocks ₱27,000.00
Feeds ₱44,470.00
Biologics and other supplies ₱705.00
Labor ₱5,835.00
Miscellaneous and other expenses ₱2,290.00
TOTAL OPERATING EXPENSES ₱81, 060.00
NET PROFIT ₱21,900.00
Exhibit III
CASH FLOW STATEMENT
Hog Production and Marketing at Caramay Highway
Pulot Center, Sofronio Española, Palawan,
July 2018-October 2018
CASH FLOW JULY AUGUST SEPTEMBER OCTOBER
CAPITAL 38,857.00 9,790.00 17,380.00 21,210.00
Sales - - - 102,960.00
TOTAL INFLOW 38,857.00 9,790.00 17,380.00 124,170.00
CASH OUTFLOW
Stocks 27,000.00 - - -
Feeds 2,300.00 8,070.00 15,500.00 18,600.00
Biologics 290.00 205.00 110.00 100.00
Labor 890.00 1,235.00 1,500.00 2,210.00
Miscellaneous 1,440.00 280.00 270.00 300.00
Housing 6,937.00 - -
TOTAL OUTFLOW 38,857.00 9,790.00 17,380.00 21,210.00
NET FLOW - - - 102,960.00
BEGINNING BALANCE - - -
ENDING BALANCE - - - 102,960.00
Exhibit IV
PROJECTED BALANCE SHEET
Hog Production and Marketing at Caramay Highway
Pulot Center, Sofronio Española, Palawan
July 2018 to October 2018
ASSET Amount (P)
Cash ₱102,960.00
Housing ₱6,177.00
TOTAL ASSET ₱109,137.00
LIABILITIES AND EQUITY
Capital ₱87,237.00
Retained Earnings ₱21,900.00
TOTAL LIABILITIES AND EQUITY ₱109,137.00
Exhibit V
RETURN ON INVESTMENT
Hog Production and Marketing at Caramay Highway Pulot Center,
Sofronio Española, Palawan
July 2018-October 2018
Net Income
ROI = ---------------------------- x 100%
Total Operating Expense
21,900.00
ROI = --------------------------- x 100%
81, 060.00
ROI =27.02%
THANK YOU!
