A FEASIBILITY STUDY OF CHICKEN FARMING PRODUCTION IN

MUNICIPALITY OF TAMPAKAN

Financial Management Research Presented

To the Faculty of Business Education
Ramon Magsaysay Memorial Colleges-Marbel Inc.
Koronadal City

In Partial Fulfillment of the Requirement for the Degree

Bachelor of Science in Business Administration
Major in Financial Management

Tizon, John Cyril C.

Dela Cruz, Almirante F.

March 2023
 CHAPTER I

BACKGROUND OF THE STUDY

1.1 Introduction

Chickens are the most popular poultry worldwide and are now used for both meat

and egg production. Producing meat is the main focus of the broiler production area in

the chicken industry. This form of production concentrates on growing meat birds by the

fastest and most efficient method possible. Producers will enter into a company contract,

receive birds from a hatchery, and generate broilers to market weight in about six weeks.

According to agriculture diaries, the term "poultry" refers to a variety of birds of

different species and generally refers to live or dressed birds that have been killed and are

ready for sale. It includes quails, ostriches, ducks, geese, guinea fowl, chickens, turkeys,

pigeons, peacocks, peafowl, and even other game birds. The majority of them can be

divided into categories based on their usefulness, marketability, or function, which may

include meat type, egg type, dual purpose, game, ornamental, etc. Changes in dietary

preferences, globalization, industrialization, rising incomes, and urbanization have all

contributed to a favorable environment for the growth of the poultry industry. One of the

livestock/agriculture sector's fastest-growing categories, poultry makes up a significant

portion of the supply of extra protein in the form of eggs and meat.

Chicken flesh is free of the trans fats that are prevalent in beef and lamb yet are

responsible for coronary heart disease. In Canada, values of up to 8% for lamb and a

range of 2 to 5% for beef have been noted. The World Cancer Research Fund and others

have stated (Bingham, 2006) that it may be unhealthy to consume a lot (more than 500

g/week) of red meat, particularly processed meat, while avoiding chicken meat.
 Poultry meat is an important provider of the essential polyunsaturated fatty acids

(PUFAs), especially the omega (n)-3 fatty acids. Scavenging chickens are a particularly

good source because of their varied diet. The amounts of these important fatty acids can

be increased more easily in chicken meat than in other livestock meats; so too can some

trace minerals and vitamins. The recommended dietary intakes (RDIs) of niacin can be

met with 100 g of chicken meat per day for adults and 50 g for infants.

Poultry farming is an essential part of the Philippine economy. The Philippines is

the world's top poultry producing country. However, there are also advantages to raising

chickens in the Philippines, including access to ample land and water resources, low

initial investment costs and low labor costs.

Poultry farming in the Philippines is a growing industry as the country seeks to

become self- sufficient in poultry food. The main factors that promote poultry farming

are the high demand for eggs and meat and land availability and feed availability.

To ensure chickens get the right amount of feed at all times, farmers use an

automatic feeder or pellet dispenser. These systems will dispense a set amount of feed

every time a chicken etas or drinks from its water bowl.

Poultry has a major role to play in developing countries. Produce is relatively

inexpensive and widely available. The commercial poultry industry provides employment

and is growing rapidly. To produce 1 kg of meat from a commercial broiler chicken only

about 1.7 kg of feed is needed. Poultry production has a less detrimental impact on the

environment than other livestock and uses less water. Semi-scavenging backyard

indigenous poultry are extremely important in providing income and high-quality protein

in the diets of rural people whose traditional foods are typically rich in carbohydrate but
low in protein. The vexed question of the cholesterol content of eggs and human health

seems to have been exaggerated.

Chicken meat can make many positive contributions to the diet of those on low

incomes. Although not all meat is seen as healthy, chicken meat is, and is frequently more

affordable than other meats. It is of a consistently high quality, is low in saturated fats,

can be enriched with some essential nutrients and is sought after worldwide.

1.2 Objectives of the Study

1.2.1 General Objectives

This study is mainly intended to determine the viability and effectiveness of

utilizing AJ chicken farm in Municipality of Tampakan, South Cotabato.

1.2.2 Specific Objectives

Determine the viability of the proposed business in the following aspects:

3.1 Marketing;

3.2 Management;

3.3 Technical;

3.4 Financial

First, marketing aspects are all focuses on the product descriptions and information,

company profile, target market, expected market share, site or location to sell the product,

pricing scheme, marketing strategy, promotional activities, and predicted sales.

Second, the component of management and organization, which encompasses the

organizational structure, customer information, remuneration package and benefits, as

well as corporate policy, laws, and regulations.

Third, the technical aspect that focuses on the lay-out or ergonomics, procurement
schedules, operational processes, waste disposal management, and other civil concerns

that possibly present in a certain company.

Fourth, the financial aspect that determines the source of funding, financial

schedules, financial assumptions, projected balance sheet, projected income, projected

cash-flow, financial statements, breakeven analysis, return of investment and payback

period and this will result a finding.

1.3 Scope and Delimitation

The researcher is intended to focus on determining the feasibility of the proposed

project in the aspect of Management, Marketing, Technical, and Financial.

And the study focuses on producing chicken and supply it to the market with good

quality, safest and healthiest at affordable price. The respondents of this study are the

wholesalers and resellers of chicken. Thus, the of chicken farming is limited only in the

areas of Municipality of Tampakan.

1.4 Locale of the Study

This study will be conducted in the Municipality of Tampakan, South Cotabato.

The researcher perfectly choose the location because the area is deserted and it is less

crowded area that is best for chicken farming, which makes it safe and away from

harmful viruses that may affect the chicken farm, to produce a quality meat for the

wholesalers and resellers.

 Figure 1 Map of the study

1.5 Significance of the Study

The result of this study will beneficial to the following individuals:

Owner or Manager. This study will provide them the strategies on how to manage and

control business operation effectively and efficiently. It also serve them as guide on how

to handle and create the business aspect.

Government. This study could also benefit any opportunity to paid any possible taxes

and refunding including insurances.

Community. This study sought to provide services to every individual and have the

opportunity to apply.

Customers. This study could help them on how they sought to make decisions about

what they want with regards to the demand offers. This also establishes their potentials as

customers.

Researcher. This study would give the researcher an idea to make her own business and

strategies in an effective way. It also serves as guide and opportunity to become globally

competitive and open-minded in planning and evaluating her own business someday.

Additionally, this will also serves as one of the references of her in the future.

Future Researcher. This study serves as a reference for future researcher that related to

this study.

1.6 Definition of Terms

For better understanding of the study, the following terms are defined operationally:
Chicken - Refers to the finished goods that determined to be supplied in the market.

Faming- Refers to the kind of business that will be established to produced a chicken

meat in the market. It also refers to the free range of chickens.

Balance sheet - Refers to a financial statement that show the total asset, liability and

equity of the proposed business.

Municipality of Tampakan - Location where the study shall be conducted.

Market - Place where people gather to buy and sell goods.

Market Growth - This refers to the commodity which the researcher want to supply

goods to meet the need of the customers.

Marketing - Refers to a strategy of a business undertakes to promote the buying and

selling of a product.

Organizational - Refer to a group of people working together to achieve common goals

and objectives of the business.

Supply - The availability of the resources that will provide in the market

Wholesalers and resellers- Refers to the target market of the study.

Chapter II
INDUSTRY ANALYSIS
This chapter discusses about the rival industry, the business strength and

weaknesses, bargaining power, business supplier and customer and the government

policies such as process and steps for having a business permits and licenses.

2.1 Rival Industry

 In many industries present nowadays, competitive strategies and advantages of a

certain company or organizations will have noticeable impact on the competition, which

will then retaliate to counter those efforts. Also, now that businesses are interdependent, a

pattern of action and reaction could hurt all businesses and the industry as a whole.

The proposed product is second to be established in Municipality of Tampakan,

because there were other establishment that produce chicken meat production. However,

there was an existing production of chicken meat in Tampakan, but they prefer to produce

already finished products that will be sold in the market instantly, the BIOTEC in Banga,

CT poultry Farm in Maltana, Tampakan, and Irene Esquivel Trinidad Poultry Farm of

Tupi. They are considered as a competitor in this study because of its popularity and best

production of chicken meat. This will serve as the nearest competitors of the proposed

business.

2.1.1 Strength

The propose product will have strengths in production quality, taste, oiginality,

and management because the resources or raw product will be use on the production is a

quality chicken meat that will benefit the customer’s satisfaction towards the product.

Since I am new to this kind of product, I will have a high degree of risk in this

area. It will take an ample of time to gain the right experience and knowledge in making

the product and I would also create a customer awareness of the product I propose. To

help minimize the risk and circumstances I will consult to the experienced person who

make chicharon.

2.1.2 Weakness

The propose product will be facing circumstances, problems and difficulties in the
market industry such as customer’s trust and awareness, customer’s choice and

perceptions, limited capital, competitors can offer the target choice of customer quickly,

religion and beliefs, flexible pricing, customer attraction, taxes and the struggles to

continually appear on the cutting edge.

Competitors Strength Weaknesses

 They have wholesalers  They are prone to

 they can produce a lot different viruses due to
Biotec of supply. chemical
This hatchery can be find in  They are very popular. experimenting.
Banga, South Cotabato. the  They may lose a lot of
highest standards of care to money if viruses infect
produce the best quality their animals..
meat. Better Farms delivers
a real difference in the
production of safe and
highly nutritious meat by
adhering to the gold
standard of well-balanced
animal care and nutrition.
 This Farm have good  They may lose a lot of
quality of chicken money if viruses infect
meat. their animals..
 Affordable price  Not popular

CT Poultry Farm

This farm is located in

Maltana, South Cotabato.

 They produce in the

different mall in Koronadal

City and they take care of

the quality nutrition's of

their chickens.

 Affordable  Other customers not

 Excellent meat quality. please with the smell.
 Popular in Tupi

Ire
ne Esquivel Trinidad
Poultry Farm

This farm is located in

Tupi, South Cotabato. This
is also a popular poultry
farm in TUPI. They are
known for their production
of meat and supply.
Table 1. Strength and weaknesses of rival business

2.2 Bargaining power of Supply

Many people more likely to eat chicken. They usually love to eat fried chicken.

It’s a common way to satisfy their self for their cravings and others are suited to make

fried chicken as their breakfast with the gravy to their rice. Also, others are using this as

an ingredient in a Filipino style dish called “chicken adobo” and others use it as an

ingredient in a noodle soup or it is called in the Philippines as “batchoy”.

Chicken meat that are already finished product that are sealed in the cellophane
will only last for a week and in that life span of the product many markets will decline it

as one to be market and the reason is, it is easily get spoiled. In my study, I will make a

preservation method where chicken meat will be sold in the market that will extend its

life span for more than a month.

2.2.1 Supplier

Supplier of the proposed business for the needed raw materials and equipments.

CT Poultry Farm-The main supply provider. Broiler Chicks can be produced by CT

Poultry farm at Municipality of Tampakan, South Cotabato. The Farm Choice

Agribusiness Enterprise is a registered agri business enterprise that focus on farmers

needs providing chicks, equipment and feeds, since 2011, they selling chickens through

online and offline. This farm store offer also a lot of different chicken products , such us

eggs, and chickens.

2.2.2 Customers

To purchase the product by target customers the chicken faming business will do

sales talk to some customers by introducing the new product and tell them what benefits

they will get if they purchase the product and besides it's healthy from head to toe, as

well as, the company will spread flyers to inform the potential customers that the product

is a best choice for its good quality and we will post to social media or internet regarding

to this product. And to give the customers a power to purchase the product, the personnel

of the business must show that the customers are highly valued by approaching of

friendliness and with hospitable manner. The employees are being understandable

towards them, given attention to customer's suggestions, comments and complaints, also

asking and suggesting of orders politely. Lastly, thanking and telling them to buy and
come again.

The company offer per crates of chicken production to the target customer

where they can less after purchasing a big amount of my chickens.

2.3 Government Policy

Government policy is a rule or principle that, hopefully, will better guide actions

and lead to beneficial outcomes that will benefit the community or unit and they have the

obligation and responsible for making and implementing various regulatory measures.

These regulatory measures include incorporating competition policy and market openness

initiatives into the regulatory policy agenda, as well as modifying regulators' cultures to

favor flexibility and outcome-oriented methods in regulation design and etc.

2.3.1 Permits

This study allocates and provides an overview about the steps and processes on how

to get and avail business permits and licenses.

Bureau of Internal Revenue (BIR) - This important because owner must submit a tax

statement using TIN at the end of each fiscal year.

Barangay Clearance - This clearance certificate s that the business complies with the

requirements of the local barangay where the business publishes and operates.

Department of Trade and Industry (DTI) Registration - This registering certificate

that business owner able to use its trading name for any business-related operation and it

protect the business name from being used by others.

Business Permit - It is mostly Mayor's Business Permit or local government where in to

secure and where the business is located and well operated.

SEC Registration Certificate - To ensure a certificate of partnership and in any cases

and have a license to establish a business.

Police Clearance - To specify that your name is clear and secure in any cases and have a

license to establish a business.

Sanitary Inspection- short, standardized observation checklists that can be used to assess

risk factors at or near sanitation facilities and identify appropriate actions to safeguard

public health.

Delivery truck van- To have a legal transport of Goods to another city.

Delivery truck sticker – To prove that the truck is fully registered.

Business inspection fee- The fee that a licensed property inspector charges for

determining the current physical condition of the property.

Sanitary permit- the official document issued by the Department of Public Health and

Social Services authorizing the establishment to operate its business.

Medical fee- Inspecting it to ensure that it is safe for consumption, packaging it,

processing it into other products such as sausage or lunch meats, delivering it to stores,

and selling it to customers.

2.3.2 Licenses

AJ Chicken Farm must pass the certificate requirements to build up a business.

Permit and License Cost

Bureau of Internal Revenue (BIR) 500

 Delivery truck van 650/unit

Barangay Clearance 500

Business inspection fee 150

Delivery Truck sticker fee 200/unit

Department of Trade and Industry (DTI) 500

Sanitary Inspection Fee 2,500

Mayor's/Business Permit 1,000

SEC Registration Certificate 2,000

Sanitary Permit 200

Police Clearance 160

Medical fee 250

Total 8,610

Table 2. P&L Cost

Chapter III

Management Feasibility

This chapter discusses about the business organization such as organizational

structure, employees’ profile, job description, job specification, recruitment and selection

process, table compensation package and benefits and company policy.

Organizational Structure

The AJ Chicken Business product will be designed and constructed in order to

facilitate successful and efficient day-to-day operations as well as future corporate

expansion. The structure enables full management oversight of corporate activities while

avoiding the utilization of superfluous management manpower. The teams include 19

regular employees under 1 manager with 1 marketing officer, 1 production supervisor, 2

driver and 3 Guards. Our management division are AJ Chicken Farm operation,

production, and Facilities Management.

This business will be registered under a sole proprietorship form of business

ownership since the owner are capable of funding about the compliance of management

requirements. The owner also wants to have full control of the operations and decide on

the major decision-making when it comes to the company.

Manager

Production
Worker Supervisor

Cashier Security
Guard
Company
driver

Figure 2. The Organizational Chart

3.2. Employees Profile

The management considers that familiarity with the area within the

proximity in the region XII because it is a benefit for convenient processing of

company transactions and efficiently marketing the product’s service to the target

market, employees with close proximity in the Region will be hired.

The management shall be efficient and productive in choosing the most

qualified employees that have the credibility and eligibility in the selection

process. Applicants and aspiring to become one of the employees shall possess

the following qualifications in line with their respective job description.

3.2.1 Job Description/ Specification

Position Job Description Specification

 Responsible for business  Male or female, single, 23 -30

operation years old
Manager
 Facilitate inside the business  Graduated of four years
 Directing and controlling business related
 Evaluate employees  Have experience in manage,
 Responsible for taxation control the business and have
 Responsible in checking and skill and knowledge in solving
keeping sales, and record, also business problems
purchased raw materials  Know how to handle people
 Responsible for income  Experienced at least 2 to 3
statement and balance sheet years

 Responsible for guiding and  Male, single, 22 - 28 years old

coaching employees and  Graduated college
Production monitoring their productivity  Have 2+ years' experience of
Supervisor  Neither train nor teach working on a production
 employees on how to use supervisor or other similar
machinery and follow position
procedures  Have experience and skill in
 Checking finish product machinery equipments
 Maintain cleanliness  Know how to solve problem
 Responsible for production  With good moral
process
 Responsible for making  Male or female, single or
sunflower beauty oil with marraige, 21-47 years old
following procedure  Hardworking and willing to
 They are the one who peel follow instruction or attention
Labor and press the sunflower seed to detail
to make an oil with the help of  Graduate high school or
machine college
 Packaging and getting  Ability to work well with
finished products ready others
 Responsible to operate  Ability to operate equipment
machine equipment  With good moral
 Responsible for collect  Female, single, 22-28 years
payments old
Cashier  Issuing receipts  Graduated of business or any
related course
 Trustworthy
 With good moral
 Professional approach
Company  They have the responsibility  High school diploma or GED
Driver and obligation deliver the raw is preferred.
materials and products to the  Valid driver’s license
company and also have the (Professional needed).
responsibility to deliver the  Clean driving record.
finish goods to the respective  Sound knowledge of road
 destination safety regulations.
 Safely transporting company  Working knowledge of local
staff as well as various
roads and routes.
products and materials to and
from specified locations in a  The ability to utilize maps,
timely manner.
GPS systems, and car
 Safely transporting company
staff as well as various manuals.
products and materials to and
 Effective communication
from specified locations in a
timely manner. skills.
 Ensuring that the company
 Punctual and reliable.
vehicle is always parked in
 Must be 21 years old and
areas that permit parking in
above and preferred male
order to avoid towing.
 Keeping the company vehicle
clean and properly maintained
by performing regular
washing, cleaning and vehicle
maintenance.
 Providing accurate time
records of the company
vehicle’s coming and goings.
 Reporting any accidents,
injuries, and vehicle damage
to management.
Security  Responsible for protecting  Male, single or marraige, 23-
guard property and inspecting 47 years old
building  Graduated college
 Monitoring surveillance  Physically and mentally fit
 Handling attendance report  With good moral
Table 3. Employee's job description/ specification

Number of Employees

For the first 3 years of AJ chicken farm, the business shall only have sixteen (16)
regular employees and three (3) security guard coming from a registered security agency.

Table 6: Required Number of Employees

JOB POSITION NUMBER OF EMPLOYEES

Manager 1

Production supervisor 1

Labor 5

Company Driver 1

Security Guard 1

Table: 4 Required Number of Employees

3.2.2 Recruitment and Selection Process

Job Preliminary Background

Posting Screening Interview check

Final Medical
Final
Approval Requirements
Interview

Figure 3. Recruitment and selection process chart

The selection process consists of following steps:

Job posting
The company will post a job according to what they need.
Step
 Screening
This helps the manager to select the best applicants according to
their backgrounds and personal information. The management will
Step
scan those resume passed by the aspiring applicants.

Preliminary interview
The manager will choose and call the applicants tha fit for the job
Step
vacancy. The applicants will interview through asking questions
which are related to written information.

Background check
In selecting employee it is important that the manager must check
Step
nor investigate the background of applicants. The manager will
check the background of every applicant to ensure that they don't
have a history or background of substance abuse, violent crime or
other issue.

Final Interview
The manager will set a final interview for those selected applicants
Step
 Medical Requirments
The applicants must secure and pass the necessary documents
that required by the company which is the medical. Applicants must
Step
undergo medical examination for the test of their medical condition.
And if the applicant who have illness nor fail in medical
examinations, the applicant will reject.

Final Approval
After the applicant has cleared all the hurdles in the selection
procedure, he/she is formally appointed by issuing him/her an
Step
appointment letter or by making a service agreement with manager
and legally can start work.

A selection process is a method of matching organizational needs with people’s

abilities and qualifications. During this procedure, the company will choose the most

competent candidates for the specific empty position. This selection procedure will assist

management in placing the appropriate person in the appropriate position and function,

allowing future workers of this institution to function more efficiently.

This process is in place to ensure that all applicants are qualified for the position.

The specifics of each level may differ depending on where you want to work, but the

emphasis will be on the traits you’ll need to succeed in the organization. Having the

appropriate academic results is simply one part of the equation. Before being approved,

all applicants must demonstrate a set of key competencies

3.3 Compensation Package and Benefits

 Employees' pay and benefits must meet the conditions set forth in the Philippine

labor code, as mandated by the constitution. AJ chicken Farm must pay the Regional

Tripartite Wages and Productivity Board's (RTWB) minimum wage for working (8) hours

per day, plus a premium payment for work done on holidays and overtime.

Every employee shall enjoy the privilege of having basic benefits such as the SSS,

PhilHealth, PAG-IBIG and 13th month pay every year end that could also be the factor

that makes the employees more motivated and could work without thinking about their

future. Also, each employee shall be also scheduled a rest day for them to be able to have

quality time with themselves that will help them to nourish their self-esteem and to enjoy

having more time with their love ones.

Position No. Of Hours No. Of Rate of Salary Salary and

Duty mini. Employee per day Wage (Php.)
MONTHLY
Daily 26
Manager 10 1 450.00 450.00 11,700.00
Production 8 1 347.00 347.00 9,022.00
Supervisor
LABOR 8 5 347.00 347.00 45,110.00
Company 8 1 347.00 347.00 9,022.00
driver
Cashier 8 1 347.00 347.00 9,022.00
Security 10 1 347.00 347.00 9,022.00
guard
Total 52 10 2,185.00 2,185.00 92,924.00

Table 5. Employee's compensation package and benefits

3.3.1 Philhealth, SSS, and Pag-ibig Contribution Table

MANDATOR Year Year 2 Year 3 Year 4 Year 5 (2028)

Y 1(2024) (2025) (2026) (2027)
Contributions
SSS 55,800.00 55,800.00 55,800.00 55,800.00 55,800.00
HDMF 38,975.04 38,975.04 38,975.04 38,975.04 38,975.04
PHIC 28,870.40 47,005.92 52,228.80 52,228.80 52,228.80
Total 123,645.44 141,780.96 147,003.84 147,003.84 147,003.84
 Table 6.1 HDMF Contribution

3.4 Company Policy

3.4.1 Terms and Condition

Recruitment, Selection, and Placement

The company is engaged in multiple methods to encourage and motivate the

qualified persons to apply for the job that our company is seeking. These includes the

posting of notices of job openings on Public Employment and Services Office (PESO)

Municipal or Provincial bulletin boards to allert applicants of openings, online job

postings and maintaining relationships with staffing sources, including universities.

For the positions of regular in the company, the person who might possibly grab

and qualified to it must be credible and have eligibility to the minimum requirements set

by AJ chicken farm qualification standards. The company’s qualification standards are set

of competencies needed to perform satisfactorily the responsibilities of a certain position.

This include but is not limited to education, experience, training, and personality traits.

Employment of Relatives

In line with the policies, rules and regulations of AJ Chicken Farming Company

no employee may hire or cause to be hired, nor supervise, any relative of the employee

otherwise employed by the company within the third degree of the consanguinity or

affinity, except with the prior approval of the proprietor.

AJ chicken farm Company are aware of the potential risk that might occur in

terms of employment of relatives like for example favoritism or a conflict between

employee inside the work environment. The company otherwise will accept the
candidates of relative employment unless the employment will not be working directly

for or supervising a relative and candidates for employment will not occupy a position in

the same line of authority in which employees can initiate or participate in decisions

involving a direct benefit to the relative.

Personnel File

The Manager acts as the custodian of all employees’ personnel records. To keep

the records up to date, the following information should be reported immediately to the

manager through a duly accomplished Human Resource Management Officer update

form and other forms pertaining to SSS, PhilHealth, Pag-ibig, whenever necessary:

• Change in name or surname

• Change in civil status

• Any change in Address

• Change in telephone number

• Change of beneficiaries

• An additional member of the family

• A death in the family

• Change in the name of the person to be contracted in case of an emergency,

• Any other information which the employee wants included in his or her files.

Outside Professional Engagement

A private professional engagement is a project signed by an employee’s whereby

they perform professional work for individuals or groups other than in the AJ chicken

farm Company.

AJ Chicken Farm Company’s employees are encouraged to use their full

professional time and expertise to work for the company. Before accepting the

involvement of outside experts, you need to discuss the issue with the department head

for approval.

The required clearance is solely for the purpose of enabling the company to

determine whether the private professional engagement involves conflicts of interest and

whether it will, in any way, impair or diminish the efficiency and productivity with which

the employee concerned performs his professional duties at AJ Chicken Farm Company.

Employment Status

The classification of employment in Company Name are as follows:

1. Regular employees are those who have successfully completed the probationary

period and have met the standards required for a regular position, or those who, upon

hiring, are given regular appointment upon the recommendation of the Unit Head or

Department Manager.

2. Probationary employees are those hired to fill in regular positions and undergo a

probationary period of six months to determine their capability and fitness to hold the

position on a regular basis.

Transfer

A transfer is a transfer from one position to another, suitable for rank, level, or

salary, without interruption of service with appointment. Transfers of employees between

departments are only permitted with the recommendation of the head of the departing

department or unit, in consultation with the Human Resources department and with the

approval of the head of the receiving department.

Demotion
 A demotion is a transfer from one post to another involving the issuance of an

appointment with reduced tasks, responsibilities, status, or rank, which may or may not

be accompanied by a wage drop.

If the demotion entails a wage cut but is not disciplinary, the demoted employee

must sign a written consent form.

Temporary Assignment

An employee may be temporarily allocated to another position to meet work

demands as part of a personnel training program, as long as the assignment does not last

longer than three months. He may, however, choose to stay in the post, in which case he

must request a transfer using the procedure outlined in the transfer section.

Separation

Separation refers to an employee’s separation from an organization, which can be

initiated by either the firm or the employee.

Resignation is the term used to describe a separation instigated by an employee.

By serving at least one month in advance, completing clearance processes, and attending

a departure interview, an employee can terminate the employee-employer relationship

without cause.

AJ Chicken Farm Company may terminate an employment for any of the following

causes:

•Serious misconduct or willful disobedience by the employee of the lawful orders of the

company in connection with his work;

•Gross and habitual neglect by the employee of his duties;

•Fraud and willful breach by the employee of the trust reposed in him by the company;
•Commission of the crime or offense by the employee against the duly authorized

representative of the company; and

•Other causes analogues to the foregoing.

Working Hours and Rest Periods

The regular work-week of AJ Chicken Farm Company if from Monday to Friday,

5 days a week. Work schedule is generally between 8:00AM to 5:00PM from Monday to

Friday, 12:00PM to 1:00 PM is lunch break. Everyone is expected to report punctually for

his or her work.

By using the modern technologies to monitor the log-in and log-out, AJ Chicken

Farm Company will use a biometric that only their finger prints is needed to monitor their

identity and the employee needed to scan four (4) times a day, login in the morning

before 8:00AM, log out in the afternoon after 12:00NN, Login in the afternoon before

1:00PM, and log out in the afternoon after 5:00PM. No employee is allowed to make any

fraud in scanning their biometrics.

Paid Holidays

Regular Holidays

New Year’s Day January 1

Maundy Thursday Movable Date

Good Friday Movable Date

Araw ng Kagitingan April 9

Labor Day May 1

Independence Day June 12

Bonifacio Day November 30

 Christmas Day December 25

Rizal Day December 30

Nationwide Special Holidays

All Saint’s Day November 1

Las Day of the Year December 31

Personal Business

All non-work-related activities must be carried out outside of working hours.

During working hours, friends, family, and others are advised not to visit the work area.

Visitors may be received in the front lobby if their visit has nothing to do with the

company’s operations.

Office Decorum

Desires to establish a dignified, pleasant, and conducive to serious professional

work environment. In such a setting, it is necessary to embrace and follow certain norms

of propriety, refinement, and formality, which, along with competence and moral

integrity, distinguish a true professional.

Employees are urged to create a productive working environment. They should

complete whatever jobs they have with order, intensity, and consistency, and should move

on to the next work once one is completed.

Whereabouts- employees should inform their superiors of their whereabouts or itineraries

daily to ensure continuity of communications.

Use of Laptops- AJ Chicken Farm Company’s professional computers, unless otherwise

specified, must be used solely for business purposes. Employees will be allowed to use

their personal computers for non-business purposes as long as they keep track of their

time and supply their own diskette.

Use of Office Equipment- non-employees should be refused politely if they request use of

office equipment except in the use of the telephone. They shall allow the use of office

equipment only in cases where the use in the generate documents in relation which their

business with us.

• Inventions, Discoveries and Software

• Under the company policy, any invention, discovery, or device-like software

which is the result of the performance of an employees’ regularly assigned duties, unless

there is an agreement, express or implied, to the contrary shall be disclosed to the

company, shall be the property of the company, and shall be assigned to the company or

an organization designated by the company.

The company policies were implemented in outlining the responsibilities of both

employees and employers. The policies and procedures are in place to protect the rights

of workers and in order to run the business well and overcome some barriers to growth.

Chapter IV

Marketing Feasibility

This chapter discusses the marketing feasibility, this includes the product description,

company name, logo, positioning, target market, projected market share, place/location, pricing
scheme, marketing strategy, promotion, advertising and projected sales.

4.1 Product Description

The 45-day-old broiler chickens will be raised by AJ Chicken farming Business with an

average target weight of 1.6 kg. Day-old chicks called broiler chickens normally have white

feathers and yellow skin, and they reach full maturity after 45 days on average. The company will

manufacture dressed chickens that are clean and in good condition. The company will also sell

the chicken's by products, including the feet, head, and neck, as well as the gizzards, liver, and

intestines.

ASSUMPTION:
AGE OF CHICKS ACQUIRED: 1 DAY
OLD
HARVEST IS DONE AFTER THE CHICKS
ARE ALREADY AFTER THE 2ND MONTH
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NUMBER OF CHICKS 800 900 1,000.00 1,100 1200
12 12 12 12 12
12,000.0
TOTAL CHICKS ACQUIRED 9,600.00 10,800.00 0 13,200.00 14,400.00

4.2 Company Name

AJ chicken meat is inspired by being natural, the company offer a quality meat to valued

customers in the area of Koronadal. The abbreviation A J is a mysterious name. AJ means

affordable Jumbo chicken to full their stomach. I believed that this new business in the market

will have a potential to be recognize and can create impact to the target market.

4.3 Company Logo

 Figure 4. Company logo

My business came up with this logo. The Chicken symbolizes our product and we put the

name and the meaning of AJ for our customer to attract and taste our delicious affordable jumbo

chicken.

4.4 Positioning

AJ Chicken Farm consider all types of people no matter what their gender, religion either

who have high or average income can be my target market that can be one of my potential buyers

of my product. The best strategy is packaging with health benefits stated at the back that the

customer may inform about essential benefits because it plays a vital role as a medium which it

has a big impact on customers perception about my product.

4.5 Target Market

AJ Chicken farming Business principally aims to apply business establishments such

butcher shops, barbecue stalls, roasted chicken food stalls, and food catering businesses in the

municipality of Tampakan.

In addition, 1,045 kilos of dressed chicken are needed in the Tampakan market. There are

currently three rivals: Biotec, CT Poultry Farm, and Irene Esquivel Trinidad Poultry Farm. The

TUPI campus is where all of the competitors are located.

4.6 Projected Market Share

AJ Chicken Magnolia Chicken Cook’s chicken Bounty Chicken

farming
50% 15% 10% 25%

Out of one hundred respondent the AJ Chicken Farming 50% because they must

prefer affordable chicken, dressed chickens that are clean and in good condition. While
the bounty chicken got 25% from respondent and the magnolia chicken got 15% and the

Cook’s chicken is 10%.

Sales

AJ Chicken farming Magnolia Chicken Cook's Chicken Bounty Chicken

Figure 5. Projected market share pie chart

4.7 Place/Location

The production building of AJ Chicken Farming will be constructed at the, Barangay

Topland, Municipality of Tampakan. The said location is a non-residual area that is good

for a manufacturing production company. The proponents foresee that this location is

perfect for a successful production of Chicken meat

that could avoid any circumstances and this place could benefit the company itself.
 Figure 6. Place/ location map

The municipality of Tampakan has a land area of 390.00 square kilometers or

150.58 square miles which constitutes 10.28% of South Cotabato's total area. Its

population as determined by the 2020 Census was 41,018.

4.8 Pricing Scheme

The products will be offered in accordance with Tampakan market prices in order

to maintain competition. Dressed chicken and its byproducts experience an average

inflation rate of 5%. (Philippine Statistics Authority). January, February, June, July,

August, September, October, and November are the typical seasons for dressed chicken

and by-products, while March, April, May, and December are the peak seasons. The

products' individual market prices per kg are mentioned below.

Product Price Per Kilo Price per Kilo

(Regular Seasons) (Peak Seasons)
Chicken P180 P200

Intestines P 80 P100

Liver P150 P180

 Feet P 80 P 100

Head P 60 P 90

Neck P 130 P 150

Gizzard P 160 P 180

Table 7. Pricing scheme

4.9 Marketing Strategy

Promotions - The AJ chicken farm business offer different promotion throught the

internet to inform customers. We create website for the customers for easy

communication and spread brochures and flyers for them to know about the information

of our product offered. In addition, the company uses google map supported in order to

access the location by customers, and the company will post an information about the

product through internet.

Price - The AJ chicken farm business offered an affordable price with good quality

product.

Product - The business provides safest, healthiest and good quality dressed chicken

product.

Place - The location of the business shall take place at the market of Tampakan which

some customers can easily find it or access.

Packaging - regarding to packaging design in the cellophone, the design is simple but

appealing for customers and the print will not easily fade. Also, it written the benefits,

tips on how to use the product effectively at the back.

4.10 Promotion and Advertising

 Demonstrating a product is one of advertising strategies that suitable to our

business to demonstrate the effectiveness of our product or ease of use. Building image

may use also in advertising for providing best product and service. Our buisness used

social media as the main platform of advertising it's product such us facebook, blogspot,

and instagram in order to promote our chicken product. And to promote our products the

company used a brochures and flyers to publicize the products and as well as putting a

signage and tarpaulin.

Particulars Quantity Price Total cost Annually

Flyers 100 per 1 100 1,200
month
Tarpaulins 5 50 250 3,000
Social media 6 (times per 100 600 7,200
(Facebook sponsored month)
post)
Total 11,400
Table 8. Promotion and advertising cost

4.11 Projected Sale

Pricing per pack

Projected
Product Weight Price sales per Annually
month
Intestine 0.1 P 80 6,400 64,000.00
Liver 0.05 P150 6,000 60,000.00
Feet 0.1 P 80 6,400 64,000.00
Head 0.1 P 60 6,400 48,000.00
Neck 0.1 P 130 6,400 104,000.00
Gizzard 0.05 P 160 6,000 64,000.00
Chicken 1.75 220 800 2,640,000.00
Total 2.00 kl 8,000 3,052,000.00
Five (5) years Projected Sale

MONTHLY BREAKDOWN
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
JANUARY 800.00 900.00 1,000.00 1,100.00
FEBRUARY 800.00 900.00 1,000.00 1,100.00
MARCH 800.00 900.00 1,000.00 1,100.00 1,200.00
APRIL 800.00 900.00 1,000.00 1,100.00 1,200.00
MAY 800.00 900.00 1,000.00 1,100.00 1,200.00
JUNE 800.00 900.00 1,000.00 1,100.00 1,200.00
JULY 800.00 900.00 1,000.00 1,100.00 1,200.00
AUGUST 800.00 900.00 1,000.00 1,100.00 1,200.00
SEPTEMBER 800.00 900.00 1,000.00 1,100.00 1,200.00
OCTOBER 800.00 900.00 1,000.00 1,100.00 1,200.00
NOVEMBER 800.00 900.00 1,000.00 1,100.00 1,200.00
DECEMBER 800.00 900.00 1,000.00 1,100.00 1,200.00
TOTAL 8,000.00 10,600.00 11,800.00 13,000.00 14,200.00
Table 9 Projected sales for 5 years

Chapter V
 Technical/Operational Feasibility
This chapter presented the technical or operational feasibility of the proposed business

which includes the lay-out or ergonomic. Procurement is presented the equipment

needed, furniture and fixture, suppliers and raw materials of the business. Production is

also discussed presents operational process, process flow and production schedule. This

chapter also explains the distribution and the waste disposal management.

5.1 Lay-out or Ergonomic

er
et
m
0
2

Figure 7. Lay-out chart

5.2 Procurement Schedule

This section discusses on what equipment needed machines, furniture and fixture,

supplies and raw materials.

5.2.1 Machine and Equipment

 Particulars Quantity Unit Total ACQUIISITION Est.
Price Amount(₱) DATE Life
Year
Knives 10 130 1,300.00 December 5 3
2023
Weighing scale 2 1980 3,960.00 December 5 3
2023
Chicken plucker 1 19000 38,000.00 December 5 5
2023
Chicken Cut Machine. 1 68088 68,088.00 December 5 5
2023
Freezer 3 15000 45,000.00 December 5 5
2023
Chopping Board 25 350 3,500.00 December 5 2
2023
Waterers 25 110 2,750.00 December 5 2
2023
Shovel 5 450 2,250.00 December 5 2
2023
Wheel Borrow 3 2195 6,585.00 December 5 3
2023
Hot Water Scalders 1 6928 6,928.00 December 5 5
2023
Killing Cone Stand. 1 36000 36,000.00 December 5 5
2023
Ss Chicken Feather 1 27450 27,450.00 December 5 5
Cleaning Machine 2023
Food Grade Belt 1 16456 16,546.00 December 5 5
Conveyor For Chicken 2023
Portioning
Screw Chiller 1 51497 51,497.00 December 5 5
2023
Double Chamber 1 41140 41,140.00 December 5 5
Chicken Vacuum 2023
Packing Machine
Bucket 5 250 1,250.00 December 5 2
2023
Tub/Basin 10 260 2,600.00 December 5 2
2023
Generator 2 15000 30,00.00 December 5 10
2023
OFFICE EQUIPMENT
Printer 2 10000 20,000.00 September 5 5
2023
COMPUTER 2 23000 46,000.00 September 5 5
2023

OFFICE SUPPLIES QTY Unit Total Amount

price
Calculator 4 465 1,395.00
 Stapler 3 65 195.00
Receipt 4 65 260.00
Folder 20 10 200.00
Record Book 10 120 1,200.00
Ballpen 1 box 12 360.00
Correction Tape 5 35 175.00
Printer 2 10000 20,000.00
Printer ink 20 250 5,000.00
Bond paper 10 rims 190 1,900.00

Furniture and Fixture

Total Date of
FURNITURE & FIXTURES QTY Unit Price Amount Acquisition EST life
Office Chair 5 1,579.00 7,895.00 10/5/2023 5
Wooden Table 4 3,299.00 13,196.00 10/5/2023 5
Filling Cabinet 1 14,500.00 14,500.00 10/5/2023 5

5.2.2 Suppliers, Raw materials

ASSUMPTION
Particulars age Quantity(sacks) Price Cost RATIO OF
@800 chicks chicks per
sack
Integra 1 UP TO 15 days old 4 1300 5,200.00 200
Integra 2 UP TO 30 days old 4 1500 6,000.00 200
pellets
Integra 3 UP TO 60 days old 5 1250 6,250.00 160
pellets
TOTAL 17,450.00

Packaging materials:
Cellophane 1,000 pack 5 P 5,000.00
Transparent sticker 1,000 5 P 5,000.00
Total P27,450.00

5.2.3 Cleaning Supplies

Particulars Quantity Price Cost

Broom 3 60 180
 Dust pan 2 40 80
Waste can 2 200 400
Sprayer 2 2,500 5,000
CHEMICALS
Total 660

5.3 Production/Operational Process

5.3.1 Process Flow

In this section the production process shows the procedure of chicken production.

A Feeding Schedule

CONSUMPTION
PER CHICKS
Feeding
Schedule 800 chicken
COST Payunan agrivet
Age of chicks in Type of Cost per TOTAL PER supply
a day feeds Consumption sack COST CHICK
Payunan agrivet
1-15 Integra 1 39 1,350.00 52650 65.81 supply
Payunan agrivet
16-30 Integra 2 45 1,500.00 67500 84.38 supply
Payunan agrivet
31-60 Integra 3 55 1,250.00 68750 85.94 supply

B. Drinking

The chicks will provide with numerous drinking bowls since they easily get

thirsty, especially in hot weather. It will also help them to learn quickly how to drink.

These will place be in bright places so they can be easily found and accessible to

approach. The source of water will be from Tampakan water district.

C. Land, delivery vehicle and building

The owner has an available land and delivery to be used for the entire operation.

The land has an are of 34,000 sq. which is enough to put up a poultry farm. The building

costs (652,762.00)

D Utilities

The poultry business need water and electricity. Water is important in order to

provide water supplements to the chicken and to clean the poultry house. The source of

water will come from an existing deep well within the vicinity and a faucet; therefore, the

need for water supply is enough to operate the business. Also, this project needs

electricity to provide light to the chicken. It will serve as a source of artificial heat for

them.
 Utilities Monthly usage Rate Monthly cost supplier

Water 45 Cubic Meter 22 Per Cubic P 1,000 Tampakan

water district

Electricity 339.80 kilowatt P10.30/kilowatt P 3,500 Socoteco 1

Internet 1000,25mbps P1000 PLDT

Total P5,500

Table 12: List of utilities expenses.

5.4 Waste Disposal Management

In order to make the project environment friendly it needs proper disposal of

waste. In connection with this, the project must have a compost pit will be dumping site

of the waste of chicken which shall be covered to minimized the spreading of odor.

5.6 Construction and other civil concern

This section discussed about the civil concern of the establishment. Civil engineer

takes care of the technical of the building like the strength of the building. This section

also secure and ensure that the building is not just strong but also looks good and taking

care of the comfort people and the chickens.

Chapter VI
 FINANCIAL FEASIBILITY

This chapter presents the financial aspect of establishing a resort. It discusses

the source of funding, financial schedule, financial assumption, projected balance

sheet, income statement, cash flow statement, break-even analysis, RIO and

payback period.

6.1 Source of funding

The Chicken Farming is a sole proprietorship form of business

organization. Therefore, the source of funding for the establishment of the

business is from personal savings of the owner. And the owner invested a total

amount of 8,000,000.

Investment Cost

The investment will be used to for building construction, furniture and

fixture and working capital needed for the establishment and operation of the

business.

Investment

Particulars Amount (₱)

Office Building 200,000.00

Chicken Poultry Building 2,200,000.00

Machineries and Equipment 343,745.00

Furniture and Fixture 34,696.00

Land 3,000,000.00

Cash on Hand 2,000,000.00

CONTINGENCY ALLOWANCE 221,559.00

 TOTAL INVESTMENT 8,000,000.00

Table 7. Investment cost

6.2 Financial Schedules

Permit and License Cost

Bureau of Internal Revenue (BIR) 500

Delivery truck van 650/unit

Barangay Clearance 500

Business inspection fee 150

Delivery Truck sticker fee 200/unit

Department of Trade and Industry (DTI) 500

Sanitary Inspection Fee 2,500

Mayor's/Business Permit 1,000

SEC Registration Certificate 2,000

Sanitary Permit 200

Police Clearance 160

Medical fee 250

Total 8,610

Table 4. Permit and License Expense

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Flyers 1,200 1,260 1,323 1,389 1,458
Tarpaulins 3,000 3,150 3,308 3,473 3,647
Social media 7,200 7,350 4,118 4,324 2,540
(Facebook sponsored
post)
Total 11,400 11,760 ₱14,60 9,186 7,645
0
Table 5. Promotion and Advertising Expense

ASSUMPTIO
N:
OPERATION
S STARTS
ON
JANUARY 1,
2024
Salaries
Expense
Monthly 2024 2025 2026 2027 2028
Rate
MANAGER 11,700. 140,400. 140,400. 140,400. 140,400. 140,400.
00 00 00 00 00 00
PRODUCTI 9,022.0 108,264. 108,264. 108,264. 108,264. 108,264.
ON 0 00 00 00 00 00
SUPERVISO
R
LABOR 45,110. 541,320. 541,320. 541,320. 541,320. 541,320.
00 00 00 00 00 00
COMPANY 9,022.0 108,264. 108,264. 108,264. 108,264. 108,264.
DRIVER 0 00 00 00 00 00
CASHIER 9,022.0 108,264. 108,264. 108,264. 108,264. 108,264.
0 00 00 00 00 00
SECURITY 9,022.0 108,264. 108,264. 108,264. 108,264. 108,264.
GUARD 0 00 00 00 00 00
Table 6. Salaries and Wages Expense

Schedule 1

Projected Sales
Product Year 1 Year2 Year 3 Year 4 Year 5
Intestine 64,000.00 84,800.00 94,400.00 104,000.00 113,600.00
Liver 60,000.00 79,500.00 88,500.00 97,500.00 106,500.00
Feet 64,000.00 84,800.00 94,400.00 104,000.00 113,600.00
Head 48,000.00 63,600.00 70,800.00 78,000.00 85,200.00
Neck 104,000.00 137,800.00 153,400.00 169,000.00 184,600.00
Gizzard 64,000.00 84,800.00 94,400.00 104,000.00 113,600.00
CHICKEN 2,640,000.00 3,498,000.00 3,894,000.00 4,290,000.00 4,686,000.0
0
TOTAL 3,052,000.00 4,043,900.00 4,501,700.00 4,959,500.00 5,417,300.0
ANNUAL 0
SALES

Schedule 2

Machineries and Equipment

OPERATING EQUIPMENTS QT UNIT TOTAL Acquisiti ES Monthly

Y COST COST on date T Dep.
life
Knives 10 130 1,300.00 12/5/20 3 3.61
23
Weighing scale 2 1980 3,960.00 12/5/20 3 55.00
23
Chicken plucker 1 19000 38,000.00 12/5/20 5 316.67
23
Chicken Cut Machine. 1 68088 68,088.00 12/5/20 5 1,134.8
23 0
Freezer 3 15000 45,000.00 12/5/20 5 250.00
23
Chopping Board 25 350 3,500.00 12/5/20 2 14.58
23
Waterers 25 110 2,750.00 12/5/20 2 4.58
23
Shovel 5 450 2,250.00 12/5/20 2 18.75
23
Wheel Borrow 3 2195 6,585.00 12/5/20 3 60.97
23
Hot Water Scalders 1 6928 6,928.00 12/5/20 5 115.47
23
Killing Cone Stand. 1 36000 36,000.00 12/5/20 5 600.00
23
Ss Chicken Feather Cleaning 1 27450 27,450.00 12/5/20 5 457.50
Machine 23
Food Grade Belt Conveyor For 1 16456 16,546.00 12/5/20 5 274.27
Chicken Portioning 23
Screw Chiller 1 51497 51,497.00 12/5/20 5 858.28
23
Double Chamber Chicken Vacuum 1 41140 41,140.00 12/5/20 5 685.67
Packing Machine 23
Bucket 5 250 1,250.00 12/5/20 2 10.42
23
Tub/Basin 10 260 2,600.00 12/5/20 2 10.83
23
Generator 2 15000 30,00.00 12/5/20 10 125.00
23
OFFICE EQUIPMENT
Printer 2 10000 20,000.00 9/5/202 5 166.67
 3
COMPUTER 2 23000 46,000.00 9/5/202 5 383.3
3 3

Schedule 3

Furniture and Fixture

Particulars Quantity Unit Total Est. Life Dep.

Price (₱) Amount (Year) Per
(₱) year
Office Chair 5 1,579.00 7,895.00 10/5/2023 5

Wooden Table 4 3,299.00 13,196.00 10/5/2023 5

Filling Cabinet 1 14,500.00 14,500.00 10/5/2023 5

Schedule 4

Utilities expense

Particulars Monthly Year 1 Year 2 Year 3 Year 4 Year 5

expense

Electricity 3,500 42,000.00 44,100.00 46,305.00 48,620.25 51,051.26

Water 1,000 12,000.00 12,600 13,230 13,892 14,586

Internet 1,000 12,000.00 12,600 13,230 13,892 14,586

Total 66,000.00 69,300.00 72,765.00 76,403.25 80,223.41

Schedule 5

Office supplies

TOTAL AMOUNT
ALLOCATED FOR OFFICE
SUPPLIES IS INCREASED
BY 5% ANNUALLY
OFFICE SUPPLIES QT UNI Unit YEAR YEAR YEAR 3 YEAR 4 YEAR 5
Y T price 1 2
Calculator 1 PCS 465.0 465.00 488.25 512.66 538.30 565.21
0
Stapler 2 PCS 65.00 130.00 136.50 143.33 150.49 158.02
Receipt 4 PAD 50.00 200.00 210.00 220.50 231.53 243.10
S
Folder 20 PCS 10.00 200.00 210.00 220.50 231.53 243.10
Record Book 10 PCS 120.0 1,200. 1,260. 1,323.0 1,389.1 1,458.6
0 00 00 0 5 1
Ballpen 1 BO 12.00 12.00 12.60 13.23 13.89 14.59
X
Correction Tape 5 PCS 35.00 175.00 183.75 192.94 202.58 212.71
Printer ink 20 PCS 250.0 5,000. 5,250. 5,512.5 5,788.1 6,077.5
0 00 00 0 3 3
Bond paper 10 RIM 190.0 1,900. 1,995. 2,094.7 2,199.4 2,309.4
S 0 00 00 5 9 6
TOTAL 9,282. 9,746. 10,233. 10,745. 11,282.
00 10 41 08 33

Schedule 7

Raw materials

Particulars Quantity Unit Price (₱) Total Amount(₱)

COST FOR 1 DAY OLD

CHICK IS PHP 20.00 ON THE
AVERAGE FOR THE FIRST
PROVISION OF PHP 1.00
PRICE INCREASE PER YEAR
IS PROVIDED
YEAR 1 YEAR 2 YEAR 3
PRICE
ACQUISITION COST- 192,000.00 226,800.00 264,000.00
CHICKS
INTEGRA 1 62,400.00 70,200.00 78,000.00
INTEGRA 2 72,000.00 81,000.00 90,000.00
INTEGRA 3 68,750.00 77,343.75 85,937.50
VACCINE& VITAMINS 76,800.00 86,400.00 96,000.00
TOTAL DIRECT MATERIALS 279,950.00 314,943.75 349,937.50

Schedule 8

Cleaning supplies

Particulars Quantity Price Year 1 Year 2 Year 3 Year 4 Year 5

 Schedule 9

Repair and Maintenance

Particular Year 1 Year 2 Year 3 Year 4 Year 5

Repair and 10,000 10,500 11,025 11,576 12,155

maintenance

Total 10,000 10,500 11,025 11,576 12,155

Schedule 10

Land

Particular No. Of sqm. Unit Amount Total Amount

Land 34,000 sqm. 100/sqm 3,400,000

Total 3,400,000

Shedule 11

Particul Acquisitio Acqu Est. Mon. Year Year Year Year 4 Year 5
ar n cost per isitio life dep. 1 2` 3
unit n
date
Buildings 2,400,000 9/5/2 15 13,333 53,3 160, 160, 160,00 160,00
023 .33 33.3 000 000 0 0
3
Machine 302,934.00 12/5/2 5 6,041. 6,04 72,5 72,5 72,500 72,500
ries and 023 73 1.73 00.6 00.6 .6 .6
Equipme
nt
Furniture 19,378.00 10/5/2 5 593.18 1,77 7,11 7,11 7,118.2 7,118.
and 023 9.55 8.2 8.2 2
Fixture

6.3 Financial Assumptions

AJ Chicken Farming
Projected Statement of Financial Performance
Projected for 5 Years
Year 1 Year 2 Year 3 Year 4 Year 5
Sales 3,052,000.00 4,043,900.00 4,501,700.00 4,959,500.00 5,417,300.00
Cost of sales 1,162,490.80 1,240,124.55 1,317,490.30 1,397,394.65 1,479,844.53
Gross profit 1,889,509.20 2,803,775.45 3,184,209.70 3,562,105.35 3,937,455.47
Less operating
Expenses:
Salaries and 465,192.00 465,192.00 465,192.00 465,192.00 465,192.00
Wages expense
13TH MONTH PAY 92,898.00 92,898.00 92,898.00 92,898.00 92,898.00
Utilities Expense 13,200.00 13,860.00 14,553.00 15,280.65 16,044.68
SSS, PHIC HDMF 123,645.44 141,780.96 147,003.84 147,003.84 147,003.84
Permit& Licenses 8,610.00 6,110.00 6,110.00 6,110.00 6,110.00
Repair and 10,000.00 10,500.00 11,025.00 11,576.25 12,155.06
Maintenance
Advertising and 7,645
Promotion 11,400 11,760 8,748 9,186
expense
FUEL AND OIL 48,000.00 48,000.00 48,000.00 48,000.00 48,000.00
Office supply 9,282.00 9,746.10 10,233.41 10,745.08 11,282.33
expense
Cleaning supply
expense 4,933 5,180 5,439 5,711 5,996
Depreciation 180,318.20 180,318.20 180,318.20 180,318.20 180,318.20
expenses
Total operating 984,081.45 986,310.47 986,649.41
expense 962,545.64 980,165.26
Net Income before
Tax 1,729,716 1,867,584 2,012,343 2,164,343 2,323,939

Less: Tax 424,035 465,395 508,823 557,278 608,348

Net Income after
Tax 1,305,681 1402,190 1,503,520 1,607,065 1,715,591

AJ Chicken Farming

Projected Statement of Cash Flow

Projected for 5 Years

Year 1 Year 2 Year 3 Year 4 Year 5

Cash flow

from operating
activities:

Net Income 926,963.56 1,823,610.19 1,128.26520 2,575,794.88 2,575,794.88

before tax

Income tax 231,740.89 455,902.55 550,032.06 643,948.72 737,701.51

Income tax after 695,222.67 1,367,707.64 1,650,096.19 1,931,846.16 2,213,104.54

tax.

Increase in 106,666.67 106,666.67 106,666.67 106,666.67 106,666.67

Depreciation

CASH
FLOWS
2023 2024 2025 2026 2027 2028
CASH
BALANCE 2,120,905.0 3,192,423.5 4,955,913.8
BEGINNING 0 6 6 6,871,760.57 9,069,144.39
ADD
RECEIPTS:
INITIAL
INVESTMEN 8,000,000.0
T 0
SERVICE 3,052,000.0 4,043,900.0 4,501,700.0
REVENUE 0.00 0 0 0 4,959,500.00 5,417,300.00
TOTAL CASH 8,000,000.0 5,172,905.0 7,236,323.5 9,457,613.8 11,831,260.5 14,486,444.3
AVAILABLE 0 0 6 6 7 9
LESS
PAYMENTS:
PURCHASE 5,879,095.0
OF ASSETS 0
PURCHASE
OF RAW
MATERIALS 471,950.00 541,743.75 613,937.50 688,531.25 765,525.00
PAYMENT
FOR DIRECT
LABOR 541,320.00 541,320.00 541,320.00 541,320.00 541,320.00
PAYMENT
FOR
OVERHEAD 184,984.00 192,824.00 197,996.00 203,306.60 208,762.73
INCOME TAX 204,674.89 428,836.55 522,966.06 616,882.72
OPERATING 782,227.44 799,847.06 803,763.25 805,992.27 806,331.21
EXPENSES
TOTAL 5,879,095.0 1,980,481.4 2,280,409.7 2,585,853.2
PAYMENTS 0 4 0 9 2,762,116.18 2,938,821.67
CASH
BALANCE 2,120,905.0 3,192,423.5 4,955,913.8 6,871,760.5 11,547,622.7
END 0 6 6 7 9,069,144.39 2

Projected Statement of

Projected for 5 Years

Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash

Office supplies

Non-Current

Land

Building

Accumulated

Depreciation -

building

Machine and

Office

Equipment
 Accumulated

Depreciation -

Furniture and

Fixtures

Accumulated

Depreciation -

Furniture and

Fixtures

total

LIABILITIES

AND EQUITY

Tax payable

Owner's equity

Capital

Chapter VII

This chapter discusses about the corporate social responsibility of the proposed

business including the internal corporate responsibility together with the external
corporate socail responsibility.

Our business will benefits the people of Koronadal who wants to buy the product.

7.1 Internal CSR

The internal corporate social responsibility of my proposed business to benefits

my employees by deducting their monthly income and if they get monthly quota,

they will get some incentives by doing their job better.

7.2 External CSR

The external social responsibility of my business are good product

Conclucion

Due to the reason of acquiring 1 month old chicken, they are more costly than newly
hatched chicken, because they already undergo to vaccine from the supplier.
According to the PSA, in the month of April to June, there are increase of buying
chicken, which have an average of 1.75 per chicken and it cost 200 per head.

The Direct cause

Cost sang pag bakal sang chick
Feeds
Vaccine

After cleaning the chicken , cleaning and removing of feathers, the kilo that will be after
removing all the feather and chicken instestime chuchuchu ang malimpyu nlng is 2kilo.