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Group3 - Organic Pig Production - Feasibility Study)
Group3 - Organic Pig Production - Feasibility Study)
Group3 - Organic Pig Production - Feasibility Study)
agriculture. The country’s agricultural sectors, namely: fisheries, livestock, farming, and forestry,
contribute a lot to the gross domestic product (GDP). A large portion of the Philippines is devoted to
agriculture. Swine production or the technology applied to the keeping of swine for profit has been a
modern enterprise in the country. Many Filipinos have ventured into backyard farming, making the swine
industry the second leading contributor to Philippine agriculture, coming in second to rice. According to
the Bureau of Agricultural Statistics (BSA), the local swine industry contributes about 83% of the total
livestock production, equivalent to almost 15% of the total value of agricultural production. Hogs
produced are mostly from backyard farms, and commercial farms raise some. As of January 2009, the
total number of pigs is about 13.6 million herds, of which 71% and 29% are from backyard farms and
commercial farms, respectively. In 2007, the total pork supply reached almost 1.7 million metric tons.
Out of these total pork supplies, 97% are produced locally, and the remaining percent are imported.
About 98% of the demand for swine production is for domestic food consumption. The remaining percent
With the increasing pork consumption and the decline in swine production due to
the African swine fever (ASF), which is a highly contagious hemorrhagic viral disease of domestic and
wild pigs, which is responsible for severe economic and production losses. It is caused by a large DNA
virus of the Asfarviridae family, which also infects ticks of the genus
Ornithodoros in which recently hits the swine industry in the Philippines. Also, with
the decreasing number of arable lands for agriculture, the need for organic pig production arises. In
organic pig production, hogs are raised on organic farms that participate in the organic farming scheme.
Organic farming does not allow chemical fertilizers, pesticides, and genetically-modified organisms
(GMOs). Compared to traditional pig farms, organic pig farms restrict antibiotics and other drugs. These
drugs were only used under very controlled conditions. Feeds cannot contain GMO's meat, bone meal,
animal fat, antibiotics, growth promoters, or other drugs and preservatives. Also, pigs are allowed to
roam outdoors. They have access to dry bedding and shelter. The production of organic pigs depends on
many factors, such as the production systems and their management. Like conventional pig farming,
organic pig farming has its strengths and weaknesses. But with these, a lot of opportunities open. One is
the need for organic farm markets; thus, organic pig production could succeed.
With the current situation of the Organic Pig Production in the Philippines, Research has
indicated a growing consumer demand for products that have come from higher welfare systems, from
systems that have low environmental impacts, from businesses that have incorporated sustainability into
PROJECT SUMMARY
The name of the business, its location, the project's descriptive definition, objectives,
A. NAME OF ENTERPRISE
Organic Pig Production is a pig farming operation. Organic Pig Production gets its name
from the easy method of raising pigs organically. The proposed name (Organic Pig Production) is
linked to the company's identity, as the company's name indicates how the
production is managed. Piggery is a direct allusion to the industry our business is associated with.
B. LOCATION
Camarines Sur
Because we must consider numerous elements in constructing an organic pig production site, the
production area was chosen to isolate production from marketing. Municipal zoning, location, distance,
b. MARKETING AREA – Pili Public Market, Old San Roque, Pili, Camarines Sur
The business is primarily targeted to public meat vendors, specifically for the organic farmers
of Brgy. Lanigpa, wherein the products can market in the PCDI Public Market along
the national road, Pecuaria, Bula, Camarines Sur since these businesses are the
The secondary market also exists; these individuals tend to purchase piglets for backyard farming
and those walk-in customers who are given the retail price.
The project deals in producing organic meat, promoting a healthy replacement for the
D. PROJECT OBJECTIVES.
The primary objective of the Organic Pig Production Project is to improve the financial
resiliency and to earn the capacity of the organic farmers of Pecuaria in which will enable them to
overcome developmental challenges caused by this pandemic through learning about organic pig
Lower the mortality rate on swine farming. Across the pork industry, an estimated
30 to 35% of pigs born die before reaching the market, creating significant economic losses for
farmers. Research shows that if the industry could increase the wean-to-finish survival by just
1%, the nation's swine industry would gain an estimated 1.2 million pigs a year. Hence, it is one
of the objectives of this project to produce a significant number of healthy organic pigs to meet
Enable the stability of a business. This project will serve as an avenue to increase
the income of the targeted participants. Because of this, orientation and training will be
conducted to assure the stability of the farm's performance. Conduct training
about feed formulation and biosecurity procedures with adequate materials and equipment
specifically designed for organic pig production to learn various management skills to become
more independent leaders-entrepreneurs in the future. Therefore, they will learn various skills to
To provide business-like opportunities for the recipients to generate income for themselves and
their community. The attainment of the first two objectives will give a leeway for the organic
farmers in Pecuaria to provide for their own needs, thus, securing their future. As businessmen
stated about opportunities underlying despite this pandemic, "The social and economic challenges
posed by COVID-19 have emphasized the true value of identifying as a business's strengths and
Provide a cheaper but consistent meat supply to families and the wider community, thereby
increasing import substitution. The substitution effect is the decrease in a product's sales
E. FEASIBILITY CRITERIA
Because the feasibility study is for an income-generating venture for organic farmers in Lanigpa,
Bula, the project's profitability and sustainability are the first two criteria. Then, because the production
is organic, we will factor in the environment, the community, and the Philippines' whole agriculture
a) HISTORY
For the subject AGEC 130, we were given the option of selecting our group members. Joshua
Cuenca was the one who organized our six-person group; however, Joshua was killed in a horrible
b) TIMETABLE
The project will last for two (2) years or a series of two sets of piglet placement since after six
months, one sow will be used for meat products in the market, and the other sow will be used for
production.
Pork is a dish that Pinoys adore. If you go into a restaurant at random, there is a good chance you
will smell sizzling sisig, grilled liempo, or, if your host is a big-timer, Lechon, an entire roasted pig. The
Philippines is the tenth-largest pork consumer, eighth-largest producer, and seventh-largest importer
globally. Pinoys are known for their piggishness, consuming approximately 35 kilograms of meat per
year, with an average of 15 kilograms of pork. It is no wonder that the country's swine business was one
of its most profitable, worth PHP200 billion (USD5 billion) in 2015 and accounting for 18.28% of its
Many households invested their savings by buying pigs, which can be fed the family’s scraps,
converting uneaten food to minimize food waste. Farmers are trying out pastured and organic rearing of
native pigs, which are healthier and lower in cholesterol than hogs raised in
piggeries. Some farms are also dabbling with newer breeds and free-range
The possible problems that might be encountered in the production are the presence of African
swine fever and other zoonotic diseases that can cause the termination of the project.
d) MODE OF FINANCING
As of the moment, two sponsors agreed to the terms and conditions of the enterprise. The DA
Region 5 and the CBSUA Business and External Affairs pledged an amount of Php 2,000,000 to gain a
e) SWOT ANALYSIS
Strength
Organic Production
Low-cost production
Availability of technologies for organic production Strongly
motivated and committed organic sector-PCDI In demand on
the market
Availability of labor
Good government support system
Capacity to grow and adapt within the industry
Sustainable and highly innovative
Weakness
Opportunity
﴿ Has maximum feed conversion efficiency.
﴿ Produce more live weight gain from a given weight of feed than any other meat-
producing animal class except broilers.
﴿ They are prolific with shorter generation intervals. A sow can be bred as early as
8 to 9 months of age and can farrow two times in a year, and they produce 6 to 12
Piglets in each farrowing.
﴿ Pig farming wants a small investment in equipment and buildings.
﴿ Creates employment opportunities.
﴿ It gives a chance to create a monopoly in the market.
﴿ Organic Pig Production increase the economy Bicol.
﴿ It helps people to be self-employed.
﴿ Formation of Organic Pig Production Farmer’s Associations.
Threats
Environmental pressure from manure accumulation and water, land, and air pollution.
Smells may threaten human health.
Presence of the pests and diseases
Presence of predators. Ex, snake.
CHAPTER II
MARKET STUDY
The product description, which includes the name, features, purposes, principal user of the
product, and geographical areas of dispersion, will be the initial market element of the study. The second
factor is the market's nature and scope, including previous demand and supply, predicted demand, and
suggested market share and selling price—finally, marketing strategies, distribution channels, pricing and
I. Product Description
The product description of the study will consist of the name of the product, its features, its uses
significant users, and the geographical areas of its dispersion.
Figure 1
rousing aroma of sizzling sisig, grilled liempo, or if your host is big-time, Lechon – a whole roasted pig.
Health-conscious consumers are driving increased sales of organic and natural food products. Natural
foods supermarkets and other specialized retailers are benefiting from this trend. Food products offered
by natural foods supermarkets tend to be less processed and frequently are free of preservatives,
Consumers' religion, income level, and health concerns all impact livestock, particularly pigs.
However, because it is aimed at corporate clients, the market will focus on the end-users who will buy the
The proponents anticipate a spike in sales during December and January, which coincide with the
Christmas and New Year seasons, when average consumption is much higher since many people eat
Table 1
Table 3
Table 4
Q5 Did you already consume organic pork? Based on the answers by ten
respondents, the majority answered
Choices tally chosen that they have not yet consumed
YES 4 organic pork. The four respondents
NO
NO 6 said yes said that the pork was given
as "pasalubong."
Total 10
Table 6
Q6 Are you willing to buy organic pork if it is Based on the answers by ten
available in the market? respondents, all of them answered that
Choices tally chosen they are willing to buy organic pork to
YES try and compare the taste and quality
YES 10 of the commercial pork.
NO
Total 10
Table 7
Q7 Are you willing to buy organic pork products Based on the answers by ten
if they will be sold at 450.00php per respondents, 3 of them want to buy the
kilogram?
pork product at 450/kg for its
Choices tally chosen nutritional benefits. The 7 of the
YES 3 respondents expect that the organic
pork is much cheaper, so upon hearing
If NO, at what price 7 NO that it may cost 450/kg, they said they
can you afford the Price
would stick to the commercial meat.
organic pork? range
250/kg
Total 10
Table 8
COMPETITION
Because swine can be kept in backyard farms and most swine farmers
and hog raisers in the area use commercial feed with synthetic vitamins and growth
experienced a 2.41 percent decline in growth during the PSA's most recent
survey. On the other hand, since the area is becoming more commercialized each
Since the business uses a low-cost marketing strategy, the proponents agreed
on the prices to be P 350 per kilo for the meat vendors. The proposed
MARKETING PROGRAM
MARKETING STRATEGY
Offer the swine slightly lower prices and discounts as the initial sales
promotion. Tarpaulin ad and online marketing will be utilized. Also, direct product
supply to the customers for free delivery with a minimum requirement. Promotions and
The business will implement a policy of Payment upon ordering and Cash-on-
Delivery. Hence, it does not offer credit sales to customers. Swine production will be
engaged in the packaging process, for it will be sold alive and slaughtered for the meat
products. The channel of distribution of the business will be directly delivered tothe
meat vendors. Only one person is assigned to the marketing, responsible for
The demand growth rate is 0.37%, and a declining supply rate of -1.3%.
Because the demand rate is reasonably increasing and the supply rate is decreasing,
we can conclude thatthe annual supply cannot satisfy the annual demand. Hence, a gap
The proponents estimated the selling price of P450 per kilo for retail and P350
for meat vendors. The marketing program includes posting tarpaulin ads to different
TECHNICAL ASPECTS
pig with white skin, upright ears, and a dished face. Because it is fast-growing, strong- framed, and has an
among meat dealers and hog raisers worldwide. This breed's sows have superior mothering
abilities, as well as the capacity to farrow and wean big litters and be great lactating breasts. The color of
Landrace is white. The top edges of their ears droop and tilt forward, approximately
parallel to the bridge of a straight nose. Landrace pigs are the sixth most often documented
swine breed in the United States, thanks to their capacity to farrow and rear large litters. The main
primary source of the pigs is Marios’s Organic Piggery from Matnog, Sorsogon. The said supplier of the
pigs is a certified organic swine breeder. The feeds' ingredients will be coming from the organic supplier
in Camarines Sur.
PRODUCTION PROCESS
WEANING DESIRED
BREEDING FARROWING & MARKET
FATTENING WEIGHT
DESIRED
BUYING DISINFECTION &
FATTENING MARKET
PIGLETS QUARANTINE WEIGHT
1. Breeding of Sows
2. Farrowing
This was when the sow gave birth to the piglets. During this
time, piglets are not yet separated from their mother and suckle t h e i
for feeds.
3. Weaning of Piglets
Piglets are weaned after four weeks of age. Feed them for 3-4
Breeding-gestation
Farrowing
Nursery
Grow-finish
storage area, fencing, and electric fence. In contrast, local specialists in the respective sectors will
manage the facilities such as the water source and electricity requirements.
ii. Swine Stocks
Matnog, Sorsogon, the local breeding farm will supply one boar and two sows. When they
arrive at the farm, they will be raised and managed following the Philippine National Standard
on Organic Agriculture (PNS-OA) for hogs until breeding age. They will be fed a self-formulated feed
OA on organic pigs for production when they reach reproductive age. During the day, they will
be able to forage on grass, insects, and grubs while being kept at night and fed self-formulated organic
iv. Marketing
After the sow reaches the appropriate age, it will produce meat products. The remaining
sow will be utilized to raise organic piglets. After determining the correct number of piglets that are ready
to be sold, the business will continue to sell live organic piglets and organic pork products to consumers
at Pecuaria Market.
Table 10
Waste collection
Data recording
Plant Location
Figure 2
Lanigpa, Bula, Camarines Sur. The total land area is approximately 1 hectare planted with fruit- bearing
trees. The area will have a space provided for the swine house and the different forages that have to be
Moreover, buildings will comprise 1 unit intended for the office and 1 unit for feed storage.
Figure 3
Digital site development plan
Figure 4
Prospected shelter with electric fence
The raw materials needed to establish the building of the swine are highly available in the locality
and nearby barangays since it is only be made of indigenous materials such as the following: Coco
The equipment and machinery utilized in the production of organic hogs will vary
based on the producer's projected output volume. Low cost may be used in a new
business endeavor or small-scale operation; however, it may have a short life.
UTILITIES
Electricity will be provided by the local electric cooperative, CASURECO III, but there is
a high potential for conversion to a renewable power source in the future. Moreover, water will be
provided from the Water district of Bula. The estimated consumption of electricity and water is
100,000.00 while fuel is estimated to have a consumption of 500 pesos consumption of the delivery
vehicle.
PRODUCTION CAPACITY
With the ratio of 5 sow x 1 boar, the expected litter size per sow is 11 piglets on average.
For the five sows, an average of 55 organic piglets can be produced. Production percentage increases as
sows mature to about 90 percent, with a maximum of 15 litter per sow in one gestation period. Suggested
production capacity considers the current needs of the local public market and the projected requirements
of the consumers. Production will entail a 24/7 operation with a double shift of 12 working hours for
each team.
COST OF RAW MATERIALS
The cost of raw materials will be focused on the farm's actual production, as the amount required
for the set-up of the production area and the equipment and tool requirements have already been covered.
Table 11
Costs of Raw Materials
Materials Unit and weight Unit Cost Total Cost
TOTAL 615,300.00
Swine manure is expected to be generated and play a significant part. The waste, when
mismanaged, could pose various environmental threats (Algae, E. Coli, Salmonella among
many) to the surrounding area, especially to the river that flows to Lanigpa and the other
neighboring areas. Instead, the business adopts the Manure Share System, where it donates its
manure to the Philippine Coconut Authority (PCA) for distribution to local farmers. It is costly at
first, but it is beneficial to the farmers' business since it provides them with a natural and
inexpensive source of fertilizer in the long run. During the first ten years of the business, this is
the only source of waste disposal to avoid environmental damage to the neighbors. However, the
the business's environment. Burial is the method applied for this, and the carcass shall be buried
2.5 meters underground with a low water table in a temperate climate just within the farm area
but isolated from the herd and any water source, including wells and the river for at least 400 meters to
avoid contamination of the decomposing bodies of the pigs. Such action shall comply withthe plant
The project's envisioned organizational structure is a corporation with a small-scale activity. This
was due to the large sums of money required to start the project. The involvement of investors and
B. ORGANIZATIONAL CHART
Board of Directors
President
Manager
Worker Worker
A. RESPONSIBILITY MATRIX
Table 12
Responsibility Matrix
POSITION QUALIFICATION RESPONSIBILITY
C. LABOR REQUIREMENT
Table 13
Manpower Requirements
POSITION NUMBER SALARY (Mo)
Manager 1 8,000.00
Supervisor 1 7,000.00
Worker 3 4,000.00
FINANCIAL ASPECTS
Orientation 7, 000
15, 300 X 11
=168, 300
Labor 98,000
Year
*Approx. 1 piglet=
22kgs
TOTAL 1, 469, 908.00 2, 455, 200.00 3, 177, 900 2, 141, 700 4, 752, 000
SOCIO-ECONOMIC STUDY
The organic pig production industry will provide an excellent opportunity for the enterprising
individual. It will be beneficial to the community member who does not have a source of income. Among
the significant contributions that the proposed projected on organic pig production offers would be as
follows:
1. The industry will promote significantly in sustainable agriculture.
2. It will provide immediate employment and livelihood to the community in barangay
Lanigpa.
3. It will increase demand for raw materials needed, especially for forages and other feed
sources.
4. The project will generally put an additional supply of quality organic pork in the market.
5. The municipality of Bula and Brgy. Lanigpa will also be benefited through the increase in tax
collection due to the addition of this project.
6. Finally, the production of healthy products will generally benefit the entire consumer.
SOCIO-ECONOMIC FRAMEWORK
Individual
Improve
Employment Income
Standard
Family of Living
Municipal
Government
Community
Taxes
Development
National
Government
PROJECT
Foreign Exchange
Supply of
Commodities Market
Additional
Supply
Production
1, 469, 908.00 2, 455, 200.00 3, 177, 900 2, 141, 700 4, 752, 000
4. Based on the projected
income, the project will
earn five years of operation respectively.
5. The organic pig production industry will provide a good opportunity for the enterprising
individual. It will be beneficial for the community member who does not have a source of income.
Among the significant contributions that the proposed projected on organic egg production
offers would be as follows:
a. The industry will promote significantly in sustainable agriculture.
b. It will provide immediate employment and livelihood to the community.
c. It will increase demand for raw materials needed, especially for forages and another feed source.
d. The project will generally put an additional supply of quality organic pork in the market.
e. The municipality of Bula and Brgy. Lanigpa will also be benefited through the
increase in tax collection due to the addition of this project.
f. Finally, the production of healthy products will generally benefit the entire
consumer.
CONCLUSION
Based on the evaluation of the findings, the project is financially and technically feasible and
socially desirable in Bula, Camarines Sur.
RECOMMENDATION
Since the project is feasible, implementation of the project is recommended