Republic of the Philippines

Davao de Oro Province

Municipality of Nabunturan

Project Proposal

I. IDENTIFYING INFORMATION

Project Title : Chicken Egg Production using Egg Machine Technology

Project Site : Purok 5, Basak, Nabunturan, Davao de Oro
Project Proponent : Nabunturan Agrarian Reform Community Integrated
Cooperative
Date of Implementation: Upon Approval and Release of Financial Assistance
Total Project Cost : PhP 1,605,864.00
Amount Requested to DOLE : PhP 1,000,000.00
Cooperative Equity : PhP 605,864.00

No. of Beneficiaries: 60 beneficiaries

II. INTRODUCTION AND RATIONALE

The Philippines is predominantly an agriculture-dependent country; about one

third of the land area of 30 million hectares is classified as agricultural lands.
Agriculture has contributed about 20% to the country’s gross domestic product.
Changes in the demand for food have also had their impact on poultry and
livestock farming. The government encourages people to make small business
such as poultry and livestock farming to increase their economic status [1]. In
Davao Region, there are a lot of poultry businesses with at least 500 chickens in
one cage.

The total volume of chicken egg production in January to March 2019 was 142.01
thousand metric tons. This was 8.8 percent higher compared with the previous
year’s level of 130.55 thousand metric tons.

Increases in chicken egg production were registered in all regions, except for CAR
and Bicol Region. Davao Region, with chicken egg production of 8.36 thousand
metric tons, reported the highest increase of 43.4 percent from the 5.83 thousand
metric tons in January to March 2018.

The three highest producing regions in the first quarter of 2019 were
CALABARZON, Central Luzon and Central Visayas. Among the regions,
CALABARZON was the top producer of chicken egg at 43.86 thousand metric
tons, accounting for 30.9 percent of the total chicken egg production. This was
followed by Central Luzon with 19.8 percent share and Central Visayas with 9.4
percent share. Collectively, these three regions comprised 60.1 percent of the
total chicken egg production of the country.
Chicken egg is still in demand as it was one of the staple food in every filipino. It
has nutritional value that children and Adult needed. Eggs are highly nutritious
and are some of the most abundant sources of proteins for many families,
including wealthy and poorer Filipino families. This is because it is fairly easy to
produce and it is also very affordable.

On the otherhand, Davao de Oro formerly known as Compostela Valley or its

short form ComVal, is a province in the Philippines located in the Davao Region
in Mindanao. The province used to be part of Davao del Norte until it was made
independent in 1998.

The province was known as Compostela Valley from its inception until December
2019, after voters in a plebiscite ratified the law which changed the name of the
province to its current name.

Davao de Oro was known in Gold and Mining. It is also an agricultural province
that could cater the needs of Davao Region in which this project will be located
to one of its Municipality, Nabunturan.

One of the great challenges currently posing us is how to feed an estimated 9

million people by the year 2050 in davao region, estimately 40%-60 % more than
presently needed eggs for health reason, even more formidable is the challenge
to achieve this without damaging the environment. The challenge is how to
increase the food supply, particularly eggs, in light of increasing demand from
predominantly urban populations with increased purchasing capacity.

Concomitantly, the rural backyard poultry systems play a pivotal role in achieving
nutritional security of the country in rural areas. The production of poultry eggs is
extremely efficient in terms of feed and water inputs. These nutritious products
can supplement household grain-based diets. Family poultry have a special place
as they are under the control of women, require low investment, assist in pest
control and provide manure for fertilizer. Improvements in their production can
meet the nutritional demand in the household and in the community by
increasing their social standing and financial autonomy. Major objective of
livestock/poultry production is to provide safe and healthy animal food/ protein
for the growing population.

About the Organization

The Nabunturan Agrarian Reform Community Integrated Cooperative (NARCICO)

begin as 3 Cooperatives, with the assistance of Department of Agrarian Reform
(DAR), it was integrated, forming now as Nabunturan Agrarian Reform
Community Integrated Cooperative, duly registered with Cooperative
Development Authority (CDA) with registration no. RN-996-DVO and under the
RA 9520 registration no. 9520-11004737 with a total membership of 1,305 mostly
Agrarian Reform Beneficiaries, Farmers and Indigenous People

The Cooperative is located at Purok 5, Basak, Nabunturan, Davao de Oro.

 About the Technology

The project will use an Egg Machine Technology that was introduce by one of the
biggest agribase businesses in the country. An egg machine refers to a complete
kit of pens with 48 six-month old ready-to-lay (RTL) hens and consists of rearing
cages with built-in feeding trough and waterer. An ‘egg machine’ is a backyard
farming starter kit that allows the continuous production of eggs in a period of
16 months. The Ready-to-Lay hens have a lifespan of 16 months while the cages
can last for 10 years. In a day, a flock or kit can produce up to 96 percent of eggs
or about 46 eggs per kit.

III. OBJECTIVES:

General Objectives

1. Through this project our main is reducing poverty, malnutrition and

unemployment problem of our country and to provide quality product to
customer and maintain the supply sufficiently by enhancing our present
Poultry Project.

Specific Objectives

1. To meet the demand of customer and built strong customer relationship.

2. To create the employment opportunity for others.
3. To contribute the economy of the country.

IV. MARKETING PLAN

A. Project Description:

The project is purely layer operation which raises 15 sets egg machine at 48
heads per sets a total of Five Hundred Seventy-Six (720) heads. It is projected
that Eighty (80%) percent of 720 heads will produce or Five Hundred Seventy-Six
(576) Eggs daily which will be sold to members and local market. The cooperative
will be provided with a production assistance of One Million (P1, 000,000.00)
pesos from Department of Labor and Employment (DOLE) which cover the cost of
the following:

Egg Machine P43, 000.00 per set x 15 sets P 645,000.00

Feeds and Veterinary Supplies 355,000.00
Grand Total P 1,000,000.00

The cooperative will provide the labor requirements of the three (3) caretaker at
Five Thousand Four Hundred Pesos(P5,400.00) monthly. The cooperative also
provides the housing facility and the area in which the housing facility be
constructed.

B. Services

The project will cater the Egg consumption of the members of the cooperative at
a low price of eggs especially those members who engage in sari-sari store.

C. Competitors

There were competitors in the locality like traders and institutional layers.

D. Business Location and Accessibility

1. Available means of transportation

2. Available road and bridges in the area
3. Available source of power and communication

E. Area of Coverage

1. Pangutosan
2. Basak
3. Magsaysay
4. Magading
5. And within Davao de Oro Province

F. Sales Forecast

Daily Number of Number of eggs Number of eggs

number of eggs weekly monthly yearly
eggs
576 eggs 4,032 eggs 120,960eggs 1,451,520 eggs
x 5.00 each x 5.00 each x 5.00 each x 5.00 each
P 2,880.00 P 20,160.00 P 604,800.00 P 7,257,600.00
V. TECHNICAL AND PRODUCTION PLAN

A. Production Process

1. The Cooperative will seek financial assistance from Department of Labor and
Employment in the amount of One Million(P1,000,000.00) Pesos which covers
the cost of Egg Machine 15 sets at 48 heads per sets and Feeds and
Veterinary Supplies. The cooperative will provide the labor of the caretaker,
the housing facility and the area in which to construct the said housing.

2. The cooperative will present a Business Plan to Department of Labor and

Employment (DOLE) and comply other requirement of DOLE.

3. The cooperative will provide the supplies (5 pairs of farm boots and 5 pcs.
Spade and gloves) at (P4,000.00) Pesos.

4. The cooperative will purchase 2 units’ solar panel at Three

Thousand(P3,000.00) Pesos. A total expenses of Twelve Thousand Four
Hundred (P12,400.00) Pesos including labor of caretaker.

Chicken Egg Production Machine P 645,000.00

Feeds and Veterinary Supplies 355,000.00
Total P1,000,000.00

VI. ORGANIZATION AND MANAGEMENT PLAN

GENERAL ASSEMBLY

BOARD OF DIRECTOR

GENERAL MANAGER/
PROJECT MANAGER

MANAGEMENT STAFF

CARETAKER
A. Type of the Organization – Multi Purpose Cooperative

Advantage of the Cooperative:

1. Low Price of Eggs
2. Members can receive Interest on Share Capital at the end of every year.
3. Members can receive Patronage refund at the end of every year.

B. Rules and responsibilities of the Board of Directors

The Board of Directors is responsible to the General Assembly. It is policy

making body of the cooperative next to the General Assembly.

1. Conduct regular meeting and special meeting as the need arise for the
project;
2. Evaluate monthly financial report of the project provided by the
management;
3. Evaluate on regular basis the performance of the management on the
project;
4. Other assignment as any necessary.

C. Function and Duties of Management Staff

1. Under policies sets by the General Assembly and the Board of Directors
have a general charge of all phases of the business operation of the
project;
2. Maintain record and account in such manner that the true and correct
condition of the cooperative may as certain there from anytime she shall
render annual periodic statement and report in the form and in the
manner prescribed by the Board of Directors and preserve the books
document and records of whatever kind pertaining to the business which
may come to her possession;
3. Subject to the policies of the Board of Directors, she may employ,
supervise dismiss any agent and employee in the management force and
post an adequate bond to assure faithful performance to her duties;
4. Conduct Monitoring and Evaluation of the project monthly

D. Function of Caretaker

1. Collect or harvest the eggs.

2. Maintain cleanliness in the area.
3. Responsible in feeding/Biologics.
4. Responsible on deliveries of Eggs.
5. Report Daily Production.
 E. Pre-operating activities

Activities 1st 2nd 3rd 4th

Business Planning
Presentation of
Business Plan to Board
of Directors
Submission of
Business Plan to DOLE
Opening

Account Title Cost

Business Plan P 2,000.00

Presentation of Business Plan to Board of Directors 6,600.00
Submission of Business Plan to DOLE 400.00
Total P 9,000.00
*(Note: Pre-operating expenses charge to existing budget of Coop)

VII. Financial Plan

Project Cost NARCICO DOLE TOTAL

A. Fixed Asset
Land and Building 500,000.00 500,000.00
Direct labor (3 months) 96,864.00 96,864.00
Total Assets 500,000.00 500,000.00
B. Pre-Operating
Expenses 9,000.00 9,000.00
C. Working Capital
Cash Assistance 1,000,000.00 1,000,000.00
from DOLE
Grand total 605,864.00 1,000,000.00 1,605,864.00

PROJECTED STATEMENT OF FINANCIAL OPERATION

Sales P 7,257,600.00
Less: Cost of Sales
Feeds and Veterinary Supplies 400,000.00
P 6,857,600.00
Less: Operating Expenses

Allowance (3 Caretaker) 96,864.00

Net Savings from Operation P 6,760,736.00
 vvvvvvvvvvv

PROJECTED CASH FLOW STATEMENT

Pre-
Operating
I. Cash Inflow
Sales 7,257,600.00
Cash Assistance 1,000,000.00
Total Cash Inflow 1,000,000.00 7,257,600.00

II. Cash Outflow

15 sets of Chicken Egg 645,000.00
Production Machine
Feeds and Veterinary 355,000.00 400,000.00
Supplies
Allowance (3 Caretaker) 96,864.00
Total Cash outflow 1,000,000.00 496,864.00
Net Cash Inflow 6,760,736.00
Add: Beginning Balance 1,000,000.00
Cash balance,ending - 7,760,736.00

Projected Statement of Financial Condition

Assets:
Cash
Total Assets P 7,760,736.00

Liabilities and Members’ Equity

Liability -
Owners’ Equity

Capital 1,000,000.00
Net Savings from operation 6,760,736.00
Total Liabilities and Owners’ Equity 7,760,736.00

VIII. SOCIO- ECONOMIC IMPACT:

This project will give additional source of income for the organization and it will
be able to help them provide more assistance to the member. On the otherhand,
it will enable some member of the organization to be employed through this
project. Indirectly, the community will be able to have a good, nutritious and
quality source of egg which will be cheaper as the transportion cost will shorten.
Prepared by:

CARMENCITA E. VALDEZ
Manager
NARCICO

Approved by:

DIARK L. DIANO
Chairperson
NARCICO

Reviewed and Checked by:

NEIL ALLAN R. BABAN Funds Availability:

Provincial Director
Davao De Oro Field Office

ADELA JADE C. TALDO

Budget Officer
DOLE Region Office XI

Recommending approval:

JASON P. BALAIS
Assistant Regional Director
Davao De Oro Field Office

Approved by:

RAYMUNDO G. AGRAVANTE
Regional Director
DOLE Region Office XI