Professional Documents
Culture Documents
Layering Farm Business Plan
Layering Farm Business Plan
Layering Farm Business Plan
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Business Overview
Layer poultry farming means raising egg laying poultry birds for the purpose of
commercial egg production. Layer chickens are such a special species of hens,
which need to be raised from when they are one day old. They start laying eggs
commercially from 16-18 weeks of age. They remain laying eggs continuously
till their 78-88 weeks of age. They can produce about one kg of eggs by
consuming about 2.25kg of food during their egg laying period.
The D’s Layer Farm is a poultry layer farm located in the Brgy. Lomonon
Palompon, Leyte. We have done a detailed market research and feasibility
studies and we were able to secure 575 m² of land to start our layer poultry
farm and egg production business. Our layer poultry farm is going to be a
standard commercial poultry farm, so will be involved in raising layers for egg
production on a commercial level.
D’s Layer Farm is well positioned to become one of the leading commercial
layer poultry farms in the town of Palompon, which is why we have been able
to source for the best hands and machines to run the company. We have put
processes and strategies in place that will help us employ best practices when
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it comes to commercial egg production as required by the regulating bodies in
the Philippines.
At D’s Layer Farm our customer’s best interest will always come first, and
everything we do will be guided by our values and professional ethics. We will
ensure that we hold ourselves accountable to the highest standards by meeting
our client’s needs precisely and completely. We will cultivate a working
environment that provides a human, sustainable approach to earning a living.
It is our mission to offer quality and excellent services that our customers will
not be able to get anywhere else by making use of the best equipment and
competent manpower. We also intend to provide the best customer service so
that our customers not only come back, but refer new client to us as well,
thereby giving us an edge over our competitors.
To become one of the leading commercial egg production brands not just in the
Palompon but also in Region 8.
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1.4 Keys to Success
The D’s Layer Farm stands out from the competition. Below are their Keys to
Success:
Great Products – providing exemplary products at market prices
Healthy Working Environment–Provide benefits with opportunities for
long term careers and opportunities for advancement with long term
plans to open a second facility
Convert Customers to Enthusiasts – Eggs is part of the food staple of
Filipinos – this will aid in continued growth
Satisfy our customers - will make customers want to return again and
again
Less cost - Maintain low overhead and operating costs.
2.1 Ownership
D’s Layer Farm is a private registered commercial layer poultry farm and egg
production company that is owned by Glicerio Duria Jr and his immediate
family members. The layer poultry farm will be fully and singlehandedly
financed by the owner – Mr. Duria and his immediate family members at least
for a period of time. Mr. Duria a retired seafarer. In addition to being an avid
livestock enthusiast himself, this job allowed him to learn about the business
first-hand. With his experience in raising farm animals, raising layering
chickens will not be a challenging part to him.
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2.2 Legal Form
The D’s Layer Farm will be formed as an S-Corporation wholly owned by Mr.
Duria.
D’s Layer Farm is well equipped and well positioned to become one of the
leading layer poultry farming business in the Palompon, which is why we have
been able to source for the best hands and equipment to run the business.
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Main highway
60m from
3.0 Products/Services
D’s Farm has two types of layering chickens namely:
Dekalb white – produce excellent white eggs
Dekalb brown – produce appealing brown eggs
After 18 months the chicken will be culled and sold 120.00 pesos per head
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• JEMCY Enterprises
• B-MEG
In the event that one of the aforementioned specialty suppliers cannot meet
their needs, the following national suppliers can both provide all of the food-
service products that they require. In addition, the following wholesalers will
supply the farm with general layering supplies:
• Vermaval Incorporated
• VAL-CO
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businesses and of course the growing popularity of specialty and processed
eggs has rapidly improved revenue growth for the industry.
In the face of this growth, profit margin has suffered from rising feed costs and
also regulations regarding animal welfare. As a matter of fact, one of the new
trends is that with the recent advancement in technology, layer farmers can
now comfortably predict and produce large quantities of eggs per time.
Below is a list of the people and business that we will market our chicken eggs
to;
Households
Individuals
Sari-sari store
Bakery
Hotels
Restaurants
Fast food eateries
Grocery stores
Agriculture merchants
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4.3 Competitive Advantage
D’s Layer Farm is fully aware that there are competitions when it comes to
selling chicken eggs all over the town of Palompon, which is why we decided to
carry out thorough market research so as to know how to take advantage of the
available market in Palompon.
We have done our homework and we have been able to highlight some factors
that will give us competitive advantage in the marketplace; some of the factors
are effective and reliable egg production processes that can help us sell our
produce at competitive prices, good network and excellent relationship
management.
Another competitive advantage that we are bringing to the industry is the fact
that we have healthy relationship with loads of major players (agriculture
merchants) in the industry; both suppliers of poultry feed, medications, buyers
chicken eggs within and outside of Palompon.
We have some of the latest commercial layer farming tools and equipment that
will help us raise layers and produce eggs in commercial quantities with less
stress
Lastly, our employees will be well taken care of and their welfare package will
be among the best within our category in the industry. It will enable them to be
more than willing to build the business with us and help deliver our set goals
and achieve all our business aims and objectives.
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5.1 Strength:
Our strength as a commercial egg production company is the fact that we have
healthy relationships with loads of major players (agriculture merchants) in the
industry; both suppliers of poultry feeds and medications and buyers of eggs.
We have some of the latest commercial egg production tools and equipment
that will help us produce eggs in commercial quantities with less stress. Aside
from our relationship (network) and equipment, we can confidently boast that
we have some the most experienced hands in Palompon.
5.2 Weakness:
Our weakness could be that we are a new commercial egg production company
in the Palompon, and perhaps it might take us sometime to attract big time
customers in the industry. We are aware of this and from our projection will
overcome this weakness with time and turn it to a major advantage for the
business.
5.3 Opportunities:
The opportunities that are available to us as a standard commercial egg
production company cannot be quantified. We know that there are loads of
households and businesses such as grocery stores, sari-sari store, hotels and
fast food restaurants that can’t do without a daily supply of chicken eggs. We
are well positioned to take advantage of this opportunity.
5.4 Threat:
Some of the threats and challenges that we are likely going to face when we
start our commercial egg production company are global economic downturn
that can impact negatively on household spending, bad weather cum natural
disasters (draughts, epidemics), unfavorable government policies and the
arrival of a competitor (a commercial farm that engage in layering chicken)
within same location. There is hardly anything you can do as regards these
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threats and challenges other than to be optimistic that things will continue to
work for your good.
Over and above, we have perfected our sale and marketing strategies first by
networking with agriculture merchants and businesses that rely on a daily
supply chicken eggs. In summary, D’s Layer Farm will adopt the following
strategies in marketing our commercial farm produce;
Below are the sources we intend exploring to generate income for D’s Layer
Farm;
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Table eggs produced by dekalb brown chickens (brown eggs)
Culled chicken
Production Plan
500 Layers
Laying
1 - 18 months
Culling
18 months
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8.0 FINANCIAL PLAN
90,000
80,000
70,000
60,000
50,000
Sales
40,000
Expense
30,000
other income (culled chicken)
20,000
10,000
0
Month 9
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 10
Month 11
Month 12
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Sales Projection
Egg Production RTL Hens Current Price of Eggs Sales per day Sales per month
a. b. c. (a x b x c) (Sales per day x 30)
Month 1 50% 500 ₱ 6.00 ₱ 1,500.00 ₱ 45,000.00
Month 2 80% 500 ₱ 6.00 ₱ 2,400.00 ₱ 72,000.00
Month 3 92.50% 500 ₱ 6.00 ₱ 2,775.00 ₱ 83,250.00
Month 4 92.50% 500 ₱ 6.00 ₱ 2,775.00 ₱ 83,250.00
Month 5 90% 500 ₱ 6.00 ₱ 2,700.00 ₱ 81,000.00
Month 6 90% 500 ₱ 6.00 ₱ 2,700.00 ₱ 81,000.00
Month 7 90% 500 ₱ 6.00 ₱ 2,700.00 ₱ 81,000.00
Month 8 87.50% 500 ₱ 6.00 ₱ 2,625.00 ₱ 78,750.00
Month 9 85% 500 ₱ 6.00 ₱ 2,550.00 ₱ 76,500.00
Month 10 85% 500 ₱ 6.00 ₱ 2,550.00 ₱ 76,500.00
Month 11 85% 500 ₱ 6.00 ₱ 2,550.00 ₱ 76,500.00
Month 12 85% 500 ₱ 6.00 ₱ 2,550.00 ₱ 76,500.00
Month 13 85% 500 ₱ 6.00 ₱ 2,550.00 ₱ 76,500.00
Month 14 85% 500 ₱ 6.00 ₱ 2,550.00 ₱ 76,500.00
Month 15 73.75% 500 ₱ 6.00 ₱ 2,212.50 ₱ 66,375.00
Month 16 70% 500 ₱ 6.00 ₱ 2,100.00 ₱ 63,000.00
Month 17 70% 500 ₱ 6.00 ₱ 2,100.00 ₱ 63,000.00
Month 18 70% 500 ₱ 6.00 ₱ 2,100.00 ₱ 63,000.00
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Cost Projection
Egg Production RTL Hens Egg tray cost per egg Egg tray cost per month Feed Cost Med &Vit Other Cost Total Monthly Cost
a. b. c. d. (a*b*c) * 30 days e. f. g. (d+e+f+g)
Month 1 50% 500 ₱ 0.1667 ₱ - 45,000 1,500 9,000 ₱ 55,500.00
Month 2 80% 500 ₱ 0.1667 ₱ 2,000.40 45,000 1,500 9,000 ₱ 57,500.40
Month 3 92.50% 500 ₱ 0.1667 ₱ 2,312.96 45,000 1,500 9,000 ₱ 57,812.96
Month 4 92.50% 500 ₱ 0.1667 ₱ 2,312.96 45,000 1,500 9,000 ₱ 57,812.96
Month 5 90% 500 ₱ 0.1667 ₱ 2,250.45 45,000 1,500 9,000 ₱ 57,750.45
Month 6 90% 500 ₱ 0.1667 ₱ 2,250.45 45,000 1,500 9,000 ₱ 57,750.45
Month 7 90% 500 ₱ 0.1667 ₱ 2,250.45 45,000 1,500 9,000 ₱ 57,750.45
Month 8 87.50% 500 ₱ 0.1667 ₱ 2,187.94 45,000 1,500 9,000 ₱ 57,687.94
Month 9 85% 500 ₱ 0.1667 ₱ 2,125.43 45,000 1,500 9,000 ₱ 57,625.43
Month 10 85% 500 ₱ 0.1667 ₱ 2,125.43 45,000 1,500 9,000 ₱ 57,625.43
Month 11 85% 500 ₱ 0.1667 ₱ 2,125.43 45,000 1,500 9,000 ₱ 57,625.43
Month 12 85% 500 ₱ 0.1667 ₱ 2,125.43 45,000 1,500 9,000 ₱ 57,625.43
Month 13 85% 500 ₱ 0.1667 ₱ 2,125.43 45,000 1,500 9,000 ₱ 57,625.43
Month 14 85% 500 ₱ 0.1667 ₱ 2,125.43 45,000 1,500 9,000 ₱ 57,625.43
Month 15 73.75% 500 ₱ 0.1667 ₱ 1,844.12 45,000 1,500 9,000 ₱ 57,344.12
Month 16 70% 500 ₱ 0.1667 ₱ 1,750.35 45,000 1,500 9,000 ₱ 57,250.35
Month 17 70% 500 ₱ 0.1667 ₱ 1,750.35 45,000 1,500 9,000 ₱ 57,250.35
Month 18 70% 500 ₱ 0.1667 ₱ 1,750.35 45,000 1,500 9,000 ₱ 57,250.35
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Projected Income Statement
2021 2022 2023 2024 2025
Sales ₱ 911,250.00 ₱ 853,875.00 ₱ 874,125.00 ₱ 911,250.00 ₱ 853,875.00
Cost of Sales
Feeds -₱ 540,000.00 -₱ 540,000.00 -₱ 540,000.00 -₱ 540,000.00 -₱ 540,000.00
Egg tray -₱ 25,317.56 -₱ 23,723.49 -₱ 24,286.11 -₱ 25,317.56 -₱ 23,723.49
Medicine/Vitamins -₱ 18,000.00 -₱ 18,000.00 -₱ 18,000.00 -₱ 18,000.00 -₱ 18,000.00
Gross Profit ₱ 327,932.44 ₱ 272,151.51 ₱ 291,838.89 ₱ 327,932.44 ₱ 272,151.51
Other Income
Sale of feed sacks ₱ 5,940.00 ₱ 5,940.00 ₱ 5,940.00 ₱ 5,940.00 ₱ 5,940.00
Gross Income ₱ 333,872.44 ₱ 278,091.51 ₱ 297,778.89 ₱ 333,872.44 ₱ 278,091.51
Salary Expense -₱ 24,000.00 -₱ 24,000.00 -₱ 24,000.00 -₱ 24,000.00 -₱ 24,000.00
Utility Expense -₱ 60,000.00 -₱ 60,000.00 -₱ 60,000.00 -₱ 60,000.00 -₱ 60,000.00
Rental Expense -₱ 36,000.00 -₱ 36,000.00 -₱ 36,000.00 -₱ 36,000.00 -₱ 36,000.00
Depreciation Expense -₱ 18,500.00 -₱ 18,500.00 -₱ 18,500.00 -₱ 18,500.00 -₱ 18,500.00
Net Income ₱ 195,372.44 ₱ 139,591.51 ₱ 159,278.89 ₱ 195,372.44 ₱ 139,591.51
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Projected Balance Sheet
2021 2022 2023 2024 2025
ASSETS
Current Assets
Cash ₱ 64,372.44 ₱ 21,463.94 ₱ 13,242.84 ₱ 191,115.28 ₱ 163,206.78
Feeds Supply ₱ 90,000.00 ₱ 90,000.00 ₱ 90,000.00 ₱ 90,000.00 ₱ 90,000.00
Non-current Assets
Egg Scaler ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00 ₱ 1,000.00
Portable Water Pump ₱ 1,500.00 ₱ 1,500.00 ₱ 1,500.00 ₱ 1,500.00 ₱ 1,500.00
RTL Hens ₱ 210,000.00 ₱ 210,000.00 ₱ 210,000.00 ₱ 210,000.00 ₱ 210,000.00
Building ₱ 70,000.00 ₱ 63,000.00 ₱ 56,000.00 ₱ 49,000.00 ₱ 42,000.00
Accumulated Dep.-Building -₱ 7,000.00 -₱ 7,000.00 -₱ 7,000.00 -₱ 7,000.00 -₱ 7,000.00
Layer Cages ₱ 115,000.00 ₱ 103,500.00 ₱ 92,000.00 ₱ 80,500.00 ₱ 69,000.00
Accumulated Dep. -Layer Cages -₱ 11,500.00 -₱ 11,500.00 -₱ 11,500.00 -₱ 11,500.00 -₱ 11,500.00
Total Non-Current Assets ₱ 379,000.00 ₱ 360,500.00 ₱ 342,000.00 ₱ 323,500.00 ₱ 305,000.00
Liabilities
A/P ₱ 15,000.00 ₱ - ₱ - ₱ - ₱ -
Total Liabilities ₱ 15,000.00 ₱ - ₱ - ₱ - ₱ -
Owner's Equity
Duria, Capital ₱ 554,372.44 ₱ 507,963.94 ₱ 481,242.84 ₱ 640,615.28 ₱ 594,206.78
Total Liablities and Owner's Equity ₱ 569,372.44 ₱ 507,963.94 ₱ 481,242.84 ₱ 640,615.28 ₱ 594,206.78
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8.0 Conclusion and Recommendation
D’s Layering Farm has a great opportunity to engage in commercial egg
production business because of the robust population of Palompon. We know
that there are loads of households and businesses such as grocery stores, sari-
sari store, hotels and fast food restaurants that can’t do without a daily supply
of chicken eggs. We are well positioned to take advantage of this opportunity.
The future of a business lies in the number of loyal customers that they have,
the capacity and competence of their employees, their investment strategy and
the business structure. If all of these factors are missing from a business
(company), then it won’t be long before the business closes shop.
Our hurdle could be that we are a new commercial egg production company in
the Palompon, and perhaps it might take us sometime to attract big time
customers in the industry. But with the increased demand of chicken eggs
from households and food related businesses and of course the growing
population of Palompon we can overcome this challenge. One of our major
goals of starting D’s Layering Farm is to build a business that will survive off
its own cash flow without injecting finance from external sources once the
business is officially running.
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