Group 7 (ParamountD):

Financial Forecasting: Sirikit Batara, MD

Eduardo Anonuevo, MD
Champion Cattle Farm Janice Anonuevo, MD
Jane Tiong MD
 FI N A N C I A L F O R E C A S T I N G : C H A M P I O N C AT T L E FA R M
The Case:

"This is a critical time for my cattle

farm. I need a bank loan to run my
cattle-fattening farm to full capacity.
"explained Albert Lim to the branch
manager of the Development Bank
of Batangas (DBB), Gloria Santos.

2/4/20XX
 FI N A N C I A L F O R E C A S T I N G : C H A M P I O N C AT T L E FA R M
Today, March 6, 1998, Lim,
manager of Champion Cattle Farms,
Inc, requested a P 8 million from DBB.
"I promise to look closely into your
request, "replied Santos. "But may I
request for a detailed estimate of the
amount and timing of your financing
requirement? Send in your financial
statements as well.“

Lim left the bank and began to

prepare a letter to DBB explaining
Champion Cattle Farms' financial
situation.
Background

Champion Cattle Farms, Inc was set up in South

Batangas Province by Albert Lim in January 1998.
Its operation involved buying yearning cattle (about
12-18 months old) from the cattle- raising areas of
Masbate Province and intensively farm-feeding
them for about six months until they weighed 100 –
120 kilograms. The cattle were then sold to traders
who, in turn to meat dealers in Manila. Terms of
purchase and sale of live cattle were on cash.
Background
.
The farm was initially financed by an inheritance
of Lim amounting to P 8.5 million. When he received
this inheritance, he immediately purchased the farm
and built facilities for a feed-lot operation on a site in
Calatagan, South Batangas. He chose the location
because of the access to the port for easy transport
of cattle, the availability of feed supply, and good
workers to tend the feed-lot. The few pieces of
equipment needed for this operation, mainly feeding
and cleaning equipment were acquired using Lim's
capital.
 When the first batch of yearnings were purchased in

FI N A N C I A L F O R E C A S T I N G : C H A M P I O N C AT T L E FA R M
January, Lim thought about spreading out his feed-lot
operation into monthly batches of about 200-300 head of
cattle. His farm and equipment could handle 1,800 head
of fully-grown cattle.
By June , an inventory of 1,200 to 1,800 head of cattle
in six weight categories would be achieved. While Lim
could determine the range of inventory to be kept at all
times (which he called "regular" level of inventory), the
exact number would depend on the availability of
yearnings from Masbate ranchers, purchase prices, and
his own financial resources.
 In the past, there were lean months of supply when there were

FI N A N C I A L F O R E C A S T I N G : C H A M P I O N C AT T L E FA R M
failures in foaling, bad weather, and other problems. In other periods,
there were a surplus supply of yearnings when small cattle ranchers
wanted to raise cash for town fiestas or for the financial support of
their families or children attending schools in Manila.
Champion Farms could only obtain credit for a minor portion of all its
feeds and veterinary supply.
Many suppliers of feeds in the Batangas area were small business
operators and traders supplied by companies based in Manila. Initial
purchases of yearlings in January and February, Lim realized that he
did not have sufficient cash to purchase stocks in six monthly batches.
At this point, he decided to request for bank financing at the DBB. Lim
personally knew its branch manager, DBB was known for its lending
program to cattle farmers in Batangas.
 FI N A N C I A L F O R E C A S T I N G : C H A M P I O N C AT T L E FA R M
Cattle Feed Lot Operations
Champion Farms purchased yearlings at an average price of P3000 per head "on-the-hoof", and
these were delivered to the farm. The average weight of these yearlings was 40kg. Estimated
costs over a six-month feeding period for each head of cattle are shown in Table1.

Feed Operation
Table 1. Cost Per Head of Cattle
ITEM COST (in Pesos)
Purchased Feeds 3740
Wages of Farm Labor 320
Veterinary supplies 105
Farm Overhead Costs 35
Total 4200

2/4/20XX
 FI N A N C I A L F O R E C A S T I N G : C H A M P I O N C AT T L E FA R M
A fully grown cattle weighed an average of 100 kg and could be sold
"off-the-hoof" for P80 per kg, in nearby cattle market auctions.
Marketing costs were not incurred. Lim kept other overhead costs under
control.
Expenses that were not associated with feed-lot operations were
limited to the salary of a farm manager, Ely Tio, who also kept cost
records, and farm facilities like insurance, office supplies, etc. He
estimated monthly overhead expenses at P10,000.
Tio purchased feeds on cash-on-delivery except from a dealer of a
Manila company which sold a 21-day credit term. Champion Farms had
a credit limit from this dealer of P150,000.
2/4/20XX
 Lim noted that his cash balance reached dangerously low levels in late February He requested Tio

FI N A N C I A L F O R E C A S T I N G : C H A M P I O N C AT T L E FA R M
to prepare a balance sheet as of February 28, shown in Exhibit 1.
Exhibit 1
CHAMPION CATTLE FARMS, INC (A)
Balance Sheet. As of February 28, 1998 (in Thousand pesos)
Assets  

Cash 456

Feeds inventory 134

Cattle stock inventory (315 heads) 2950

Equipment 460

Land and building 4550

Total Assets 8550

   

Liabilities and Stockholder's equity  

Accounts payable 150

Common Stock 8400

Total Liability and Stockholder’s Equity 8550

2/4/20XX
 FI N A N C I A L F O R E C A S T I N G : C H A M P I O N C AT T L E FA R M
On the first week of March, Lim
made this usual trip to Masbate and
came back with 90 heads of yearning
cattle. Immediately, he went to Santos
of DBB to explain Champion Farms'
problem. "We need the bank loan
because we shall sell our January
batch only in July. Please give us a
one-year loan for at least P8 million,
"he said as he presented his cost
estimates and balance sheet to
Santos.
QUESTIONS:
A.) Why does Champion Farms need financing? What possible sources
of funds can be accessed by Champion Farms?
B.) Prepare a cash budget . Estimate the amount and timing of
financing needed by Champion Farms.
C.) What funding source is most suitable for the financial need and
condition of Champion Farms? If DBB grants a bank loan, what are the
Champion Farms’ sources of repayment for the loan? Will these
sources be sufficient to pay off the loan at the end of 1-year?
Question# A.) Why does Champion Farms need financing? What possible sources of
funds can be accessed by Champion Farms?

-Champion farms need financing for the business of buying and selling for the reason that based
on the Balanced Sheet provided, Champion farms and its facilities cannot maximize its potential
due to limited cash in business operation for which cattle needs fattening before selling it to the
market at the right time (after 6 months feeding). The business of Champion Farm is buying
cattle and fattening before selling it to the market at a right price. Cash is needed for day-to-day
operations of the farm.

Possible Sources of funds:

1.) bank Loan
2.) increase Credit Limit and extended term for feed supplier
3.) Capital Infusion from an investor
4.) Capital infusion from the owner
Question # B.) Prepare a cash budget . Estimate the amount and timing
of financing needed by Champion Farms.

• This will be tackled when we present the table of WITHOUT LOAN vs WITH LOAN
tables to see the differences and the know how will Champion Cattle Farm maximize its
business capacity.
Question# C.) What funding source is most suitable for the
financial need and condition of Champion Farms? If DBB grants
a bank loan, what are the Champion Farms’ sources of
repayment for the loan? Will these sources be sufficient to pay
off the loan at the end of 1-year?
-the best funding source for Champion Cattle Farms Inc. is thru bank business loan via credit line to be used as
Additional Working Capital and Liquidity Support Facilities in the business.

-this Credit line will help Champion Cattle Farm expand their buying and selling capacity of cattle at the right
time and will be able to play the cattle market due to availability of funds anytime. It will also help them
maximize the use of their farm and its facilities due to availability of its revolving funds.

-If DBB bank grants the bank loan, Champion cattle farm has the advantage of increasing its sales and profit,
thus, paying of their loan will not be a problem because only the availed loan will be paid thru their income
and sales of the company. And since Champion Farm is a continuing business, they can pay off the loan on a
specified time and at the same time renew its credit line yearly for its continuous business operations.
Viewpoint
-The Analysts are coming from the vantage point of Mr. Albert Lim with the expert advice of Tio Ely, Farm Manager of
Champion Cattle Farms Inc., regarding the detailed estimate of their financing requirements.

Time Context
-March 1998

Definition of the Problem

-How would Mr. Albert Lim persuade Gloria Santos, DBB manager, to grant the financial loan he needed to solve the
insufficiency of funds to continue the smooth operation of Champion Cattle Farms, Inc.

Objectives
a.) To convince Gloria Santos, Development Bank of Batangas manager, to grant Champion Cattle Farms, Inc needed
economic credit/ loan.
b.) To solve Champion Cattle Farms, Inc deficiency of capitals that was seen/hinted in March as a ground-breaking point
of their low cash funding.

Area of Consideration
SWOT Analysis
Strengths
-Champion Cattle Farms, Inc has a great location since it is accessible to the port. for easy transport of cattle coming from
Masbate, the availability of feed supply, and good workers to tend the feed-lot.
-It required only a few pieces of equipment needed for its operation, mainly feeding and cleaning equipment.
-It has a vast land area and feed-lot since it can accommodate 1800 fully grown cattle.
-Marketing costs were not incurred.
-Lim kept other overhead costs under control. Expenses not associated with feed-lot operations were limited to the salary
of a farm manager, Ely Tio, who also kept cost records, and farm facilities like insurance, office supplies, etc. He estimated
monthly overhead expenses at P10,000.
• Weakness
 
-Champion Cattle Farms, Inc is a start-up company- only 2-months old when it wanted to avail a loan to DBB.
-Since it is a six-month feeding operating program, there are no expected income within those initial 6 (six) months.
-The range of inventory availability depends on Mr. Alex Lim financial resources. Initial purchases of yearlings in January and February, Lim
realized that he did not have sufficient cash to purchase stocks in six monthly batches.
-Lim noted that his cash balance reached dangerously low levels in late February.

• Opportunities
 
-The availability of cattle inventory can be a surplus supply of yearnings when small cattle ranchers wanted to raise cash for town fiestas or the
financial support of their families or children attending schools in Manila.
-10-year sturdy relationship with Oriental Bank

• Threats
-The range of inventory depends on the availability of yearnings from Masbate ranchers and purchase prices. In the past, there were lean
months of supply when there were failures in foaling, bad weather, and other problems.
-Champion Farms could only obtain credit for a minor portion of all its feeds and veterinary supply. Many suppliers of feeds in the Batangas area
were small business operators and traders supplied by companies based in Manila.
-A fully grown cattle weighed an average of 100 kg and could be sold "off- the-hoof" for P80 per kg, in nearby cattle market auctions. If you do
something on the hoof, you do it as a quick reaction to something that has happened,
rather than planning it carefully. They claimed that policy was being made on the hoof. To do something `on the hoof' literally means to do it
while on horseback without stopping to get off.
-Most of the purchased feeds are on cash-on-delivery except a dealer of a Manila company that sold a 21-day credit term. Champion Farms had
a credit limit from this dealer of P150,000.
Alternative Course of Action Expectations:
1.) Its operation involved buying yearning cattle (about 12-18 months old) from the cattle-raising areas of Masbate
Province and intensively farm-feeding them for about six months until they weighed 100 – 120 kilograms.
2.) Champion Farms purchased yearlings at an average price of P3000 per head "on-the-hoof", delivered to the farm.
The average weight of these yearlings was 40kg
3.) An inventory of 1,200 to 1,800 head of cattle in six weight categories would be achieved by June.
4.) The purchased feeds are on cash-on-delivery except for a dealer of a Manila company that sold a 21-day credit term.
Champion Farms had a credit limit from this dealer of P150,000.
5.) Estimated total costs per head of cattle over a six-month feeding period 4200 pesos.
6.) Expenses that were not associated with feed-lot operations were limited to the salary of a farm manager, Ely Tio. He
estimated monthly overhead expenses at P10,000.
7.) As of February 28, 1998, the total of Cattle stock inventory is 315, then an additional 90 yearning in early March.
8.) Lim thought about spreading out his feed-lot operation into monthly batches of about 200-300 head of cattle. Catch
up for additional purchase in March and distribute an insufficient number of required inventory for April to June to
complete 1800 yearnings.
 CASH BUDGET FOR CHAMPION CATTLE FARM INC.
(Based on the Balance Sheet Provided AS OF Feb
28,1998)
WITHOUT LOAN
CASH BUDGET FOR CHAMPION CATTLE FARM INC.  
(Based on the Balance Sheet Provided AS OF Feb 28,1998)
 
WITHOUT LOAN
    MAR APR MAY JUN JUL AUG
Details/ Particulars        

Opening Balance 590,000.00 (123,500.00) (417,000.00) (710,500.00) (1,004,000.00) 1,873,000.00

         
A. Receipts        

Cash Sales - - - - 2,950,000.00 -

Additional Capital - - - - - -

Total - - - - 2,950,000.00 -
         
B. Payments        

Cash Purchases 270,000.00 - - - - 450,000.00

Feed Operation Expenses 283,500.00 283,500.00 283,500.00 283,500.00 63,000.00 168,000.00

Overhead Expenses 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Interest to Creditor - - - - - -

Payment to Creditor 150,000.00 - - - - -

         

Total 713,500.00 293,500.00 293,500.00 293,500.00 73,000.00 628,000.00

         

Closing Balance (123,500.00) (417,000.00) (710,500.00) (1,004,000.00) 1,873,000.00 1,245,000.00

               
    SEP OCT NOV DEC JAN
Details/ Particulars        
977,857.00 722,857.00 467,857.00
Opening Balance - 1,245,000.00 1,232,857.00
         
A. Receipts        

Cash Sales 842,857.00 - - - -

Additional Capital - - -   -

Total 842,857.00 - - - -
         
B. Payments        

Cash Purchases 600,000.00 - - - -

Feed Operation Expenses 245,000.00 245,000.00 245,000.00 245,000.00 245,000.00
Overhead Expenses 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Interest to Creditor - - - - -

Payment to Creditor - - - - -
         
Total 855,000.00 255,000.00 255,000.00 255,000.00 255,000.00
         

Closing Balance 1,232,857.00 977,857.00 722,857.00 467,857.00 212,857.00

             
    FEB MAR
Details/ Particulars    
212,857.00
Opening Balance 1,467,619.00
     
A. Receipts    
Cash Sales 1,404,762.00 1,873,016.00
Additional Capital - -
Total 1,404,762.00 1,873,016.00
     
B. Payments    
Cash Purchases - -
Feed Operation Expenses 140,000.00 -
Overhead Expenses 10,000.00 10,000.00
Interest to Creditor - -
Payment to Creditor - -
     
Total 150,000.00 10,000.00
     
Closing Balance 1,467,619.00 3,330,635.00

       
Table without loan

    MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

Details/ Particulars                

Opening Balance 590,000.00 (123,500.00) (417,000.00) (710,500.00) (1,004,000.00) 1,873,000.00 1,245,000.00 1,232,857.00 977,857.00 722,857.00 467,857.00 212,857.00 1,467,619.00

                 

A. Receipts                

Cash Sales - - - - 2,950,000.00 - 842,857.00 - - - - 1,404,762.00 1,873,016.00

Additional Capital - - - - - - - - -   - - -

Total - - - - 2,950,000.00 - 842,857.00 - - - - 1,404,762.00 1,873,016.00

                 

B. Payments                

Cash Purchases 270,000.00 - - - - 450,000.00 600,000.00 - - - - - -

Feed Operation Expenses 283,500.00 283,500.00 283,500.00 283,500.00 63,000.00 168,000.00 245,000.00 245,000.00 245,000.00 245,000.00 245,000.00 140,000.00 -

Overhead Expenses 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Interest to Creditor - - - - - - - - - - - - -

Payment to Creditor 150,000.00 - - - - - - - - - - - -

                 

Total 713,500.00 293,500.00 293,500.00 293,500.00 73,000.00 628,000.00 855,000.00 255,000.00 255,000.00 255,000.00 255,000.00 150,000.00 10,000.00

                 

Closing Balance   (123,500.00) (417,000.00) (710,500.00) (1,004,000.00) 1,873,000.00 1,245,000.00 1,232,857.00 977,857.00 722,857.00 467,857.00 212,857.00 1,467,619.00 3,330,635.00
NOTES: FOR
WITHOUT LOAN
TABLE
1. Based on the Balance Sheet Provided, Opening Balance
includes cash and feeds inventory as beginning.
2. The Cash budget is an illustration based on the given by
Champion Cattle Farm Inc. Balance Sheet
3. This Cash budget will show the urgency for capital infusion in the farm to help
them in their monthly expenses and business.
4. This Cash budget shows Champion farm can maximize their their
profit and operation if bank loan will be provided.
5. In this Illustration, Champion is in need of bank financing in the month of March with a
minimum of 2 million pesos loan for daily operation expenses. Because you can see in the
table that by June, the farm is already on negative level of 1 million pesos for its operation.
6. Beginning of March the feed expenses includes for the 315 heads of cattle and
additional 90 heads of yearling until the time of selling
7. In August and September illustrates that after selling of the cattles at the right time,
Champion farms can procure again yearlings for the next batch of selling.

Conclusion:
The DBB Banks can provide 8 Million loan Credit line for Champion Cattle Farms in order for them to maximize its
capacity in the business and to have a strong potential in the market and they can pay the interest and principal at
specified period of time or within a year. We can also say the credit facility given by bank can be renewed for continuing
business operation expansion.
CASH BUDGET FOR CHAMPION
CATTLE FARM INC.

WITH ASSUMPTION THAT BANK LOAN OF

8 MILLION IS PROVIDED BY DBB
    MAR APR MAY JUN JUL
Details/ Particulars        
Opening Balance 590,000.00 7,796,500.00 3,723,000.00 1,909,500.00 696,000.00
         
A. Receipts        
Cash Sales - - - - 2,950,000.00
Additional Capital thru loan 8,000,000.00 - - - -
Total 8,000,000.00 - - - 2,950,000.00
         
B. Payments        
Cash Purchases 270,000.00 3,000,000.00 600,000.00 - -
Feed Operation Expenses 283,500.00 983,500.00 1,123,500.00 1,123,500.00 903,000.00
Overhead Expenses 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Interest to Creditor 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00
Payment to Creditor 150,000.00 - - - -
         
Total 793,500.00 4,073,500.00 1,813,500.00 1,213,500.00 993,000.00
         
Closing Balance 7,796,500.00 3,723,000.00 1,909,500.00 696,000.00 2,653,000.00

             
    AUG SEP OCT NOV DEC
Details/ Particulars        
Opening Balance 2,653,000.00 1,105,000.00 172,857.00 3,697,935.00 4,220,950.00
         
A. Receipts        
Cash Sales -- - 842,857.00 9,365,078.00 1,873,015.00 -
Additional Capital thru
loan - - - -  
Total - 842,857.00 9,365,078.00 1,873,015.00 -
         
B. Payments        
Cash Purchases 450,000.00 600,000.00 4,350,000.00 -- -- - -- -- -
Feed Operation
Expenses 1,008,000.00 1,085,000.00 1,400,000.00 1,260,000.00 1,260,000.00
Overhead Expenses 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Interest to Creditor 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00
Payment to Creditor - - - - -
         
Total 1,548,000.00 1,775,000.00 5,840,000.00 1,350,000.00 1,350,000.00
         
Closing Balance 1,105,000.00 172,857.00 3,697,935.00 4,220,950.00 2,870,950.00
             
    JAN FEB MAR APR
Details/ Particulars      
Opening Balance 2,870,950.00 1,520,950.00 1,680,712.00 2,448,728.00
       
A. Receipts      
Cash Sales - 1,404,762.00 1,873,016.00 13,579,364.60
Additional Capital thru loan - - -  
Total - 1,404,762.00 1,873,016.00 13,579,364.60
       
B. Payments      
Cash Purchases -- - --- - ---- - ---- -
Feed Operation Expenses 1,260,000.00 1,155,000.00 1,015,000.00 -
Overhead Expenses 10,000.00 10,000.00 10,000.00 10,000.00
Interest to Creditor 80,000.00 80,000.00 80,000.00 80,000.00
Payment to Creditor - - - 8,000,000.00
       
Total 1,350,000.00 1,245,000.00 1,105,000.00 8,090,000.00
       
Closing Balance 1,520,950.00 1,680,712.00 2,448,728.00 7,938,092.55
           
 MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR

Details/ Particulars

Opening Balance 590,000.00 7,796,500.00 3,723,000.00 1,909,500.00 696,000.00 2,653,000.00 1,105,000.00 172,857.00 3,697,935.00 4,220,950.00 2,870,950.00 1,520,950.00 1,680,712.00 2,448,728.00

A. Receipts

Cash Sales - - - - 2,950,000.00 - 842,857.00 9,365,078.00 1,873,015.00 - - 1,404,762.00 1,873,016.00 13,579,364.60

Additional Capital thru loan 8,000,000.00 - - - - - - - - - - -

Total 8,000,000.00 - - - 2,950,000.00 - 842,857.00 9,365,078.00 1,873,015.00 - - 1,404,762.00 1,873,016.00 13,579,364.60

B. Payments

Cash Purchases 270,000.00 3,000,000.00 600,000.00 - - 450,000.00 600,000.00 4,350,000.00 - - - - - -

Feed Operation Expenses 283,500.00 983,500.00 1,123,500.00 1,123,500.00 903,000.00 1,008,000.00 1,085,000.00 1,400,000.00 1,260,000.00 1,260,000.00 1,260,000.00 1,155,000.00 1,015,000.00 -

Overhead Expenses 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Interest to Creditor 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00

Payment to Creditor 150,000.00 - - - - - - - - - - - - 8,000,000.00

Total 793,500.00 4,073,500.00 1,813,500.00 1,213,500.00 993,000.00 1,548,000.00 1,775,000.00 5,840,000.00 1,350,000.00 1,350,000.00 1,350,000.00 1,245,000.00 1,105,000.00 8,090,000.00

Closing Balance 7,796,500.00 3,723,000.00 1,909,500.00 696,000.00 2,653,000.00 1,105,000.00 172,857.00 3,697,935.00 4,220,950.00 2,870,950.00 1,520,950.00 1,680,712.00 2,448,728.00 7,938,092.55
NOTES FOR WITH
LOAN TABLE  

1. This illustration assumes that the bank provide Champion Farms a loan of 8 Million on March 1998 and the maturity  
will be on April 1999.
 
2. This illustration provides a clear background that Champion farms can pay its obligation including interest.
 
3. In this illustration the interest rate given by the bank is 12% per annum.
4. This illustration provides a background that loan provides relief to the business and it was able to provide increase  
in profit at the end of year.
 
5. The loan given was used for additional working capital and liquidity support for the business.
 

Conclusion:
The DBB Banks can provide 8 Million loan Credit line for Champion Cattle Farms in order for them to maximize capacity in the
business and the business has a strong potential in the market and can pay the interest and principal at specified period of time
or within a year. We can also say the credit facility given by bank can be renewed for continuing business operation expansion.

 
 Action Plan
Nature of Activity Responsible Person Duration
 Persuade and ratify bank loan to Development Bank of Albert Lim 7 days
Batangas
 Benchmark regarding the price of cow meat in the market to change    
perception on the "off-the-hoof" pricing. Ely Tio, Farm Manager 7 days

 Set meeting with Feeds dealer and persuade to have a credit term    
instead of the cash-on-delivery basis Albert Lim 3 days

 Attend training on the latest trend on Livestock Agriculture and    

Animal Feeding Operations Albert Lim and Ely Tio 7 days

 Conduct Animal experiments and Meat Quality evaluations to    

maximize sales to the market. Albert Lim 14 days

 Explore raw materials for cattle feed production Ely Tio, Farm Manager 5 days

 Seek advice and marketing assistance before placing cattle on feed in    

a backgrounding western livestock price insurance program is an    
easy-to-use risk management tool that provides beef producers with
protection against price, currency, and basis of risk. Albert Lim 14 days

 Increase the weight of the cattle over 90 days (more weight, more    
money when you sell) and increase the quality of the beef (higher    
grade of beef, more money when you sell). Ely Tio, Farm Manager 30 days
Recommendation
-A lack of funds to buy the cattle for beef fattening when prices are favorable is a lost opportunity to make an
essential move to give the cattle the correct quantity and type of feed. He needs to persuade and ratify bank loan
with Development Bank of Batangas (DBB). The rapport of Albert Lim with Gloria Santos, the bank's branch
manager, will be beneficial in the persuasion. Furthermore, DBB was known for its lending program to cattle farmers
in Batangas. The request of at least P 8 million possibly can get higher as long as they can present their financial
statements accordingly.
 
-Market price should be higher than the usual "off-the-hoof" price of 80 per kg. The market price of beef/cow meat
went high during 1998. The highest price is P 232 per kg; Lowest was 180 / kg.
 
-Purchased Feeds are on a Cash-on-delivery basis. They can be persuaded to have a 30-day or longer credit term,
and higher limit since Champion Cattle Farms Inc has been an excellent client of the dealers providing feeds for
them, so as they have the luxury to revolve the finances to where they can use it such as additional cattle inventory.
Furthermore, the probability of exploring raw materials for cattle feed production will aid Champion Cattle Farms Inc,
to solve their dilemma on purchasing feeds and will have their own way of producing their feeds, a new business
opportunity then.
 
-Attend and explore training regarding the latest trends: Livestock Agriculture and Animal Feeding Operations,
Animal Experiment and Meat Quality evaluations to maximize sales to the market. Moreover, growing the weight of
the cattle over 90 days (more weight, more money when you sell) and increases the quality of the beef (higher grade
of beef, more money when you sell).
 
-Seek advice and marketing assistance before placing cattle on feed in a backgrounding western livestock price
insurance program is an easy-to-use risk management tool that provides beef producers with protection against
price, currency, and basis risk.
The end 
Thank you…