INTEGRATED ANIMAL PROJECT

(CATTLE FATTENING AND DUCK EGG PRODUCTION)

KASAFIA
Brgy. Katangawan , General Santos City
 KATANGAWAN SAGANA FARMER-IRRIGATORS’ ASSOCIATION, INC(KASAFIA)

Brgy Katangawan, General Santos City

INTEGRATED ANIMAL PROJECT (CATTLE FATTENING AND DUCK EGG

PRODUCTION)

TABLE OF CONTENTS

INVESTMENT CAPITAL REQUIREMENT…………………………………………………………………v

EXECUTIVE SUMMARY……………………………………………………………………….……………...…vi

PROJECT RATIONALE……………………………………………………………………………….….…..……1

PROJECT OBJECTIVES……………………………………..……………………………………………..….…..1

General Objective………………………………………………………………………….……………1

Specific Objectives……………………………………………………………………….……………..1

MARKET STUDY………………………………………………………………………………….…………………2

OPERATIONAL PLAN……………………………………………………………………….…………………….4

PROJECT MANAGEMENT ROLES AND FUNCTIONS………….…….…………..……………………5

PRODUCTION AND OPERATION PROCESS……………………….……………………………………6

SOCIAL AND ENVIROMENTAL SAFEGUARDS………………………………………………………….9

SOCIAL SAFEGUARD PROJECT…………………………………………………………………….…..9

ENVIRONMENTAL SAFEGUARD ASPECT……………………………………………..…………10

FINANCIAL ASPECT……………..…………………………………………………………..………………….11

FINANCIAL ASSUMPTIONS……………………………………………………………….……………….…11

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INVESTMENT/PROJECT COST…………………………………………………………………………..…12

PRODUCTION SCHEDULE………………………………………………………………………………….…13

PRODUCTION COSTS AND RETURNS…………………………………………….……………………..15

PROJECTED SALES………………………………………………………………………………………………17

PROJECTED INCOME STATEMENT……………………………………………………………………….18

FINANCIAL ANALYSIS………………………………………………………………………………………..20

SUSTAINABILITY MECHANISIM…………………………………………………….…………………….21

List of Tables

Table 1. Identified Buyers for Fattened Cattle and Duck Eggs……………………………….3

Table 2. Total Feed Requirement for Corn Silage………………………………………………….7

Table 3. Total Investment/Project Cost………………………………………………….…………..12

Table 4. Cost Sharing……………………………………………………………………………………….….12

Table 5. Purchase Cost of Cattle…………………………………………………………………………..13

Table 6. Purchase Cost of Duck………………………………………………………………..………….13

Table 7.Purchase Cost for Cattle Biologics…………………………………………………………..13

Table 8.Purchase Cost of Corn Silage…………………………..………………………………………14

Table 9. Cost and Return Analysis for Cattle Fattening Production……………………..15

Table 10. Depreciation Cost (Chopper and Cattle shedhouse)…………………….………15

Table 11. Cost and Return Analysis for Duck Egg Production……………..…….………..16

Table 12. Egg Production…………………………………………………………………………………….16

Table 13. Depreciation Cost (Duck House and fence)…………………………………..……..16

Table 14.. Projected Sales of Cattle Fattening Production……………….………………….17

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Table 15. Projected Sales of Duck Egg Production………………………………………………17

Table 16.Income Statement of Cattle Fattening……………………………………………….….18

Table 17.Income Statement of Duck Egg Production………………………….....……………19

List of Figures

Organizationa Structure of the Association…………………………….…………………………….4

Process Flow for Cattle Fattening Production……………………………………………………….6

Process Flow for Duck Egg Production……………………………………………….…………………8

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 ENTERPRISE PROFILE

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 INTEGRATED ANIMAL PROJECT (CATTLE FATTENING AND DUCK EGG
Title
PRODUCTION)
Location Purok 14, Katangawan Gen. Santos City

(Indicate one or more enterprise interventions based on enterprise Prioritiz
ation results and describe briefly how each component will contribute to the
Components development of the industry and the goals of PRDP)
 Input Provision;  Production;  Postharvest;  Processing;
 Marketing/TradingProduction/Fattening of Cattle/Duck Egg Production

(Indicate product/s form / common name and or services, annual capacity A
Products and/or Services nd seasonality, if applicable) Product/s: FATTENED CATTLE and DUCK EGGS
Service/s: ____________________Annual capacity:  Seasonality

Stage of enterprise/s X START -up;  Expansion;  Upgrading

KATANGAWAN SAGANA FARMER-IRRIGATORS’ASSOCIATION,INC.
Name of the Proponent Group
(KASAFIA)
Contact Person/designation Rhudelito M. Salvani/ President
Address Purok 11, Katangawan Gen. Santos City
Landline:
Fax:
Contact Numbers
Mobile: 09265124060/09993860950
E-mail:
 Cooperative Development Authority; Year Registered: __________
 Securities and Exchange Commission; Year Registered: June 1 1984;
Business Registration SEC Reg. No.120938
 Department of Labor & Employment; Year Registered: __________
Alcantara, Lozano ranch, SunglaoRanch (cattle); Integrated Duck Raising in
Producers/ Suppliers
Tacurong and Bagumbayan (ducks)

Target Buyers Open market in General Santos City

INVESTMENT CAPITAL REQUIREMENT

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 Components /Line Items(should be Fund Sources (PhP)
specific) Amount, PhP GOP LGU
LP (Cash) Proponent Group
(Cash) (Cash)
Cash In-Kind
A.      Duckery (computed for 6 months)
Duck (ready-to-lay) 270,000.00 162,000.00 54,000.00 54,000.00
Feeds 540,000.00 540,000.00
Housing 8,500.00 8,500.00
Fencing 10,000.00 10,000.00
Caretaker Salary 24,000.00 24,000.00
Sub-total 852,500.00
B.      Cattle Fattening
26 Stocks ( 200-250 kgs.) 650,000.00 390,000.00 130,000.00 130,000.00
Feedings 96,720.00 96,720.00
Biologics (Injectable vitamins and minerals) 2,520.00 2,520.00
Rental of Area (per production cycle) 10,000.00 10,000.00
Housing 26,150.00 26,150.00
Fencing 4,000.00 4,000.00
Elecricity 2,834.40 2,834.40
Caretaker Salary 24,000.00 24,000.00
Chopper 80,000.00 48,000.00 16,000.00 16,000.00
Sub-total 896,224.40
TOTAL PROJECT COST 1,748,724.40 600,000.00 200,000.00 200,000.00 10,000.00 738,724.40

Cost Sharing
Enterprise Cost Infrastructure Cost
Fund Source Proposal Amount
Amount Cost sharing (%) Amount Cost Sharing
Loan Proceeds 600,000.00 60.00 600,000.00
Government of the Philippines 200,000.00 20.00 200,000.00
Local Government Units 200,000.00 20.00 200,000.00
Sub-total 1,000,000.00 100.00 1,000,000.00
Proponent Group (PG) Equity 748,724.40 74.87 748,724.40
Total Project Cost 1,748,724.40 1,748,724.40

EXECUTIVE SUMMARY

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 Animal raising is one of the most common undertakings in support to crops
production activities in rural areas. Farmers have usually few heads of livestock and
poultry as a source of additional income to augment family’s needs. Most common
animals being raised in the farm and purposely to be marketed include chicken, ducks,
cattle and others.

Cattle fattening has gained prominence as a relevant business venture of the

livestock industry in the Philippines.  It provides the farmer with extra income. He can
also make use of cheap, plentiful farm by-products such as corn stovers, rice straw,
copra meal, rice bran and sugarcane tops, which habitually go to waste. Mostly, it helps
meet the urgent demand for high-protein foods in the Filipino diet.

On the other hand, duck farming is also one of the popular businesses when it
comes to agriculture. Ducks are highly available and there are numerous meat and egg
productive duck breeds available throughout the world. There are various advantages
of starting duck farming business such as:  less expensive, simple and non-elaborate
housing facilities; less care or management;  lay eggs either at night or in the morning
and many other. Ducks have also have less mortality rate and usually they live longer
than chickens.

The proposed enterprise is Cattle Fattening and Duck Egg Production. This will
be undertaken by the Katangawan Sagana Farmer-Irrigators’ Association (KASAFIA,
Inc,). KASAFIA, Inc. is a duly registered association of farmers who are primarily
involved in the production of palay, corn, coconut and other crops. Also, some of them
have already some experience with cattle fattening and duck egg production.

The members of the association are farmers in the city who were affected by
the occurrence of El Nino phenomenon. They were not able to plant and harvest the
past two cropping seasons. Hence, the need to provide alternative source of livelihood
to provide income for the farm family.

Fattened/marktetable cattle will be marketed to contact buyers in the city. The

duck eggs, on the other hand, will be marketed to balut makers in the city.

The proposed enterprise will be managed by the association. The president will
be in-charged in the direct supervision of the project. Its members will be divided into
two clusters; one cluster to handle the implementation the cattle fattening project while
the other cluster will handle the implementation of the duck egg production.

The package of technology to be employed by the project will be based on the

approved technology by the Department of Agriculture. Technical assistance will also

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be provided by the Office of the City Agriculturist to ensure success in the process of
implementation.

In terms of financial feasibility and viability of the proposed enterprise, the

following information reflects the result of the financial analysis; to wit: Cattle Fattening
Project has an ROI of 37.92 %, while Duck Egg Production Project has an ROI of 44.55%.
This means that for every one peso investment, there is a net return of 0.37 centavos for
cattle fattening and 0.44 centavos for duck egg production. This shows that the business
enterprise will earn a profit that could serve as additional income of the members of the
association.

The proposed enterprise has a total capital investment of Php 1,748,724.40

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 I.PROJECT RATIONALE

Mindanao is one of the regions in the Philippines most vulnerable to the impacts
of El Niñ o because of its proximity to the equator. General Santos City is one of the
hardest hit areas in Mindanao. In view of this, the city was placed under a state of
calamity due to overwhelming effects of El Niñ o not only to the farmers but also other
people in the community.

The members of Katangawan Sagana Farmers Irrigators Association (KASAFIA)

are some of the affected farmers of El Niñ o phenomenon. The association has 239
hectares service area and has a total of 62 members. The association is engage in the
production of rice, corn, vegetables and other annual crops; also they have fishponds.
Involvement of the association is not only in the production but also in the postharvest,
processing and marketing aspects. The willingness of the association to engage in these
agricultural activities to improve their livelihood is the reason why they were chosen as
the proponent. Some of the members are also engaged in raising few heads of cattle and
ducks, hence, they already have the knowledge on the care and management of these
animals.

PROJECT OBJECTIVES
General Objective: Provide the farmer beneficiaries’ additional source of
income.

Specific Objectives:
1. Increase the individual farmer income at five (5) percent per year
2. Enhance knowledge on cattle fattening and duck egg production to the
project beneficiaries thru this Micro Enterprise.
3. To provide alternative source and/or additional income for the farmer
members of the association

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 II.MARKET STUDY

Product Description

The proponent will be divided into two groups. The first group will be incharged
in the cattle fattening production; while the other one will be in the duck egg
production.

A. Fattened Cattle

Fattened cattle is one of the products to be produced in this project. It will be

sold in the market in bulk for better command in terms of price. The sales is
assumed at Php 100.00 per kilogram of liveweight fattened cattle with a
bodyweight of 400 – 450 kgs per head. If the location of the farms where the
animals will be procured has incidence of the diseases mentioned vaccination of
the animals will be required. Fecalysis will also be done to determine the
parasite egg count present in the animals. Dosage and frequency of deworming
drugs will also be determined by this activity. To ensure that there will be no or
minimal infestation of external parasite, administration or application of drugs
will also be done. They will also ensure that the fattened cattle are well fed and
cared, and also will be monitored regularly to be assured they are always in
good health and achieve its ideal weight based on the production schedule. When
the cattle reach to its marketable weight they will be hauled by trailer from the
farm to their identified buyers.

B. Duck Eggs

Fresh duck eggs also will be the product of this project. Before marketing,
the duck eggs will be cleaned by using knife, soiled paper or towel. Egg basket,
bamboo basket or wooden box will be used for carrying eggs from one place to
anoth It will be sold per tray and selling price per egg is Php 7.00

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 Target market/Buyer
There has been no peak season for live cattle and duck eggs in the city since they
are marketed whole year round. The commodity can be readily absorbed by the open
market and the slaughterhouse so there will be no need for volume requirement nor
marketing arrangements.Word-of-mouth promotional strategy can also be utilized to
promote the cattle to the market. The Association will have a direct contact with the
prospective buyers in advance of the marketing period. The table below shows the
prospective market for this project.

Table 1. – Identified buyers for fattened cattle and duck eggs

A.     Fattened Cattle
Capacity/Volume
Name Location
Required

Joey Salangsang Barangay San Isidro

Matthew Animas Barangay Lagao

No required
Arnulio Sudaria Barangay City Heights
volume
Rey Isaloc (Triple M Meat
Barangay Lagao
Shop)
Yacapin Meat Shop Central Public Market

B.     Duck eggs

Name Location

Erson Tupas Alabel, Sarangani Province

Percival Estares Koronadal City

Members of the association

who are engage in balut General Santos City
making

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 III. OPERATIONAL PLAN

Katangawan Sagana Farmers Irrigators Association (KASAFIA) will manage the

subproject with a total of 62 members duly registered with the Security and Exchange
Commission on June 1, 1984 in General Santos City with registration no. 120938. The
members of the association are engage in the production of rice, corn, vegetables and
other annual crops; some of them have fishponds. Involvement of the association is not
only in the production but also in the postharvest, processing and marketing aspects.
Some of the members are also engaged in raising few heads of cattle and ducks, hence,
they already have the knowledge on the care and management of these animals. Still,
the members of the association must be properly trained to enhance their knowledge in
managing this project.
Figure below shows the organizational structure of the association.

Figure 1

General Assembly

DA, DILG, DTI, City

Audit Committee
Agri, City Vet

Board of Trustees

Membership, Finance Agricultural

Irrigation Complaints and
Educ. & Development Supervision
Mngt. Com Grievance Com.
Training Com. Com. Com.

President
Cattle Fattening &
Duck Egg Production
Vice-President Project

Treasurer
Secretary Auditor

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FIG 1 FIG 2 FIG 3 FIG 4
Project Management Roles and Functions

The association is operated by the following officers and committee members

who are duly elected by the General Assembly which is the highest decision-making
body that is composed of all members of the association.

Board of Trustees – Provide general policy direction; formulate the strategic

development plan; perform such other functions as may be prescribed in the By-Laws
or authorized by the GA.

President – set the agenda for board meetings in coordination with the other members
of the BOD; preside over all meetings of the BOD and of the General Assembly; sign
contracts, agreements, certificates and other documents on behalf of the cooperative as
authorized by the BOD or by the GA; perform such other functions as may be authorized
by the BOD or by the GA.

Vice-President – Perform all the duties and responsibilities of the President in the
absence of the latter

Treasurer – Ensure that all cash collections are deposited in accordance with the
policies set by the BOD; have custody of all funds, securities, and documentations
relating to all assets, liabilities, income and expenditures; monitor and review the
financial management operations of the association, subject to such limitations and
control as may be prescribed by BOD; perform such other functions as may be
prescribed in the By-Laws.

Secretary – Keep an updated and complete registry of all members Record, prepare and
maintain records of all minutes of all meetings of the BOD and the GA; ensure that
necessary BOD’s actions and decisions are transmitted to the management for
compliance and implementation; perform such other functions as may be prescribed in
the By-Laws or authorized by the GA.

Auditor – Ensure to audit the financial aspects of the project for transparency

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 Production and Operation Process
The proposed project will be directly under the supervision of the
President of the association. There will be one (1) member of the association
will be assigned in cattle fattening and one (1) also in duckery. It will be closely
monitored by the BOD. The proponent will provide the area for housing of the
cattle and ducks. Based on the results on cost and return analysis for one year
projection the total net income for cattle fattening is Php 600,427.87 and for
duck egg production is Php 624,415.00 a total net income of Php 1,224,842.87.
The 50% of proceeds will go to the association for project expansion and the
other 50% will be equally divided to the first batch of beneficiaries as their own
share of the profit.

A. Cattle Fattening
Figure 2. Process Flow for Cattle Fattening Production

KASAFIA will purchase

26 heads of cattle

Cattle will be in a
Fully grown and confined area fully
healthy cattle ready equipped necessary
for sale facilities

Assigned member will

take care of the feedings
and maintenance of the
area and will be closely
monitored by the BOD

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 The cattle will be procured from a reliable source within the city or in its
neighboring areas in the region with a weight of 200-250 kgs per head and with
an assumed cost of Php 25,000.00/head. The preferred breedto be purchase is
Bhraman. Proper handling of animals during purchase and transport will be
strictly observed to avoid injuries, stress and mortality.The project will fatten the
cattle within 6 months.

Gathering forage is a year-round activity of the association. In order for

the association to less their production cost for catlle fattening,theyhave an area
for nappier grass and the members of the association are required to plant
nappier grass in the edge or boundary of their farm to contribute for the feedings
of the cattle. The animals will be feed both roughage and farm by-products
available in the area like banana leaves, banana fruits, pineapple pulps that are
rejects from the nearby plantation. In addition, crop residues and other farm by-
products like rice straw, corn stovers, and ipil-ipil leaves may also be used
extensively. There were also members of the association who are engaged in
sweet corn production which can be use for silage making. Since the area for
cattle fattening is near in the water pump it will be provided for potable water.
The table below show the total feed requirement of corn silage for 26 cattle.

Table 2 . Total feed requirement of corn silage

Feed Requirement for one head of Total Feed
Feeding Requirement
No. of Stage of Weight of cattle to Entire Growing
Duration Daily of Cattle
heads Growth be fattened Type Period per
(no. of days) (kg./day)
head (kgs.)
Fattener
(kgs.)

26 Fattener 200-250 kgs 186 Corn Silage 20.00 3,720.00 96,720.00

Total 186 3,720.00 96,720.00

Assumptions:
Feeding Duration is 6 mos.
Weight of Cattle at Purchase 200 -250 kgs
Weight of Cattle at Disposal 400 -450 kgs
Average Dalily Weight Gain (AWG) 1.08
Feed Conversion Ratio 0.11
Average Daily Feed Requirement 20.0 kgs.

A chopper will be provided to the association to ensure fast preparation

of cattle feed/forage. All infrastructure to be constructed such as fence and
animal house will be handled by the members of the association through
‘bayanihan’. Also, the area is near in the source of water. The cattle will be
disposed after it reaches 400-450 kgs per head.

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 It is projected that within the three (3) years of operation there will be at
least 5-6 production cycles.

B. Duck Egg Production

Figure 3. Process Flow for Duck Egg Production

KASAFIA will purchase

1500 heads of ducks
(1300 female and 200
male)

Ducks will be in a
Fresh eggs produced confined area fully
are ready for sale equipped of
necessary facilities

Assigned member will

take care of the feedings
and maintenance of the
area and will be closely
monitored by the BOD

Appropriate technology of production will also be used in the duck egg

production project. The proponent will procure 1500 heads of ready-to-lay
ducks in a ratio 13:2 (13 female: 2male). The ducks will be in a confined area.
Proper care and management of the ducks will be employed to ensure the
productivity of the layer ducks. The laying efficiency of duck range in 70-75%.
Duck eggs will be sold in an open market. It will be sold per tray and selling price
per egg is Php 7.00.

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 IV. SOCIAL AND ENVIRONMENTAL SAFEGUARDS

1. Social Safeguard Project

Subproject Beneficiaries

The association was chosen for this project based on the following
reasons: they are already organized and registered as an association; they have
experienced losses due to the El Nino phenomenon; some of them have already
experience in cattle fattening and duck eggs production; and their willingness and
perseverance in pursuing the project. Most of the members of the association have
attained highschool diploma while the others obtained elementary level.

The consultation meeting was held at Barangay Katangawan General Santos City
on July 2016 as per attached copy of their attendance and photo. They have accepted
the project for them to have an additional income that can sustain their daily needs.

Indigenous Cultural Communities

None of them are members of the Indigenous People (IPs). The project site is not
located inside the ancestral domain

Status of Land Ownership

The location of the project site including the area for cattle and ducks as well as
the area for corn and nappier grass is owned by the president’s father of the
association. There will be a lease of contract and the rental fee is Php 20,000.00 per
year.

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2.Environmental Safeguard Aspect

Natural habitat

The project site is not within an officially declared or proposed protected area of
natural habitat. It is also located near the irrigation canal which can be a source of water
for drinking and bathing for the animals.There are trees such as coconut and other
plants surrounded it.

Hazards/Risk Assessment

There is no drainage concern in the area. There is no potential risk for erosion
and flooding in the project site. But if the area will not be sanitized properly, there will
be a low risk of health hazard.

Social and Environmental Impact

The proposed project is an income-generating enterprise that will improve social
impact in the community. It will help to uplift their economic status and will attain
unity within the members and the entire community. This project is environment
friendly, since the dung of the animals will be used as an organic fertilizer for the
crops of the farmers.

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 V.FINANCIAL ASPECT

Financial Assumptions
To determine the performance of the proposed project, financial projections
were computed based on the given assumptions presented in the different
aspects of the study. The proposed project has the following assumptions:

Cattle Fattening
 The cost of cattle to be fattened is Php 25,000.00 per head
 Target period of fattening the animals is six (6) months
 Feed and supplements will also be provided
 Feedings,rental of area, housing, fencing, electricity and salary for the
project will be the proponent’s equity.
 Fixed Assets are depreciated using straight-line method.
 Marketable weight is more or less 400-450 kilograms per head; average
liveweight price is Php 100.00/kg

Duckery

 The ready-to-lay ducks will be purchased at Php 180.00 per head with a
ratio of 13 females: 2 males or there will be 1300 heads of female and
200 heads of male ducks
 Selling price per egg is Php 7.00
 Laying efficiency rate is 70-75%
 Eggs will be sold per tray

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Investment/ Project Cost
The proposed project on Cattle Fattening and Duck Eggs Production of
Katangawan Sagana Farmers Irrigators Association (KASAFIA) will have a total project
cost of Php1,748,724.40. The Loan Proceed is amounting to Php 600,000.00,
Government of the Philippines and Local Government Unit of General Santos City will be
having a counterpart of Php200,000 each. Out from the total project cost, the
Proponent Group will have an equity amounting to Php 748,724.40.
Table 3. Total Investment/Project Cost
Components /Line Items(should be Fund Sources (PhP)
specific) Amount, PhP GOP LGU
LP (Cash) Proponent Group
(Cash) (Cash)
Cash In-Kind
A.      Duckery (computed for 6 months)
Duck (ready-to-lay) 270,000.00 162,000.00 54,000.00 54,000.00
Feeds 540,000.00 540,000.00
Housing 8,500.00 8,500.00
Fencing 10,000.00 10,000.00
Caretaker Salary 24,000.00 24,000.00
Sub-total 852,500.00
B.      Cattle Fattening
26 Stocks ( 200-250 kgs.) 650,000.00 390,000.00 130,000.00 130,000.00
Feedings 96,720.00 96,720.00
Biologics (Injectable vitamins and minerals) 2,520.00 2,520.00
Rental of Area (per production cycle) 10,000.00 10,000.00
Housing 26,150.00 26,150.00
Fencing 4,000.00 4,000.00
Elecricity 2,834.40 2,834.40
Caretaker Salary 24,000.00 24,000.00
Chopper 80,000.00 48,000.00 16,000.00 16,000.00
Sub-total 896,224.40
TOTAL PROJECT COST 1,748,724.40 600,000.00 200,000.00 200,000.00 10,000.00 738,724.40

Shown in the table below is the cost sharing of the project. It stresses out the
percentage distribution of the equity contribution and the loan amount to quantify and
fill the amount required to start the operation of the proposed enterprises.

Table 4. Cost Sharing

Enterprise Cost Infrastructure Cost
Fund Source Proposal Amount
Amount Cost sharing (%) Amount Cost Sharing
Loan Proceeds 600,000.00 60.00 600,000.00
Government of the Philippines 200,000.00 20.00 200,000.00
Local Government Units 200,000.00 20.00 200,000.00
Sub-total 1,000,000.00 100.00 1,000,000.00
Proponent Group (PG) Equity 748,724.40 74.87 748,724.40
Total Project Cost 1,748,724.40 1,748,724.40

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Production Schedule

The table below shows the detailed computation/schedule of the proposed Cattle
Fattening and Duck Egg Production.
Table 5. Purchase Cost of Cattle

Cycle
Year 1 Year 2 Year 3
Particulars Quantity Unit Cost per Unit 1st Cycle 2nd Cycle
Cattle ( @ 200-
250 kgs per
head) 26 heads 25,000.00 650,000.00 650,000.00 1,300,000.00 1,300,000.00 1,300,000.00

Total Cost 650,000.00 650,000.00 1,300,000.00 1,300,000.00 1,300,000.00

The table above shows that catlle fattening project will purchase 26 heads of
cattle weighing 200-250 kgs per head with a cost Php 25,000.00 amounting to Php
650,000.00 per cycle.

Table 6. Purchase Cost of Duck

Particulars Quantity Unit Cost Per Unit CYCLE Year

1ST Cycle 1 2 3
Duck (ready-to-lay) 1500 heads 180 270,000.00 270,000.00 270,000.00 270,000.00
Total Cost 180 270,000.00 270,000.00 270,000.00 270,000.00

The table above shows the purchase cost of duck (ready-to-lay) in one year is
Php 270,000.00. 1500 heads of ducks will be purchased (1300 female and 200 male).
Another set of ducks will be purchased in the 2 nd and 3rd year for expansion of the
project.

Table 7.Purchase Cost for Cattle Biologics

Year 1 Total Year 2 Year 3
Particulars
1st Cycle 2nd Cycle
Cattle Biologics
Injectable multivitamins
2,520.00 2,520.00 5,040.00 5,040.00 5,040.00
with ADE (7 bottles)

The table above shows the purchase cost of cattle biologics (injectable
mulvitamins with ADE) with an amount of Php 2520.00 per production cyle. The cost of
multivitamins with ADE per bottle containing 100 ml is assumed at Php 360.00. 25 ml
will be injected per cattle once per production cycle.

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 Table 8.Purchase cost for corn silage
Feed Requirement for one head of Total Feed Year 1
Feeding Requirement Estimated
No. of Stage of Weight of cattle to Entire Growing of Cattle
Duration Daily Cost/ Total Cost 1st Total Cost Total Year 2 Year 3
heads Growth be fattened Type Period per
(no. of days) (kg./day)
head (kgs.)
Fattener Kilogram Cycle 2nd Cycle
(kgs.)

26 Fattener 200-250 kgs 186 Corn Silage 20.00 3,720.00 96,720.00 1.00 96,720.00 96,720.00 193,440.00 193,440.00 193,440.00

Total 186 3,720.00 96,720.00 96,720.00 96,720.00 193,440.00 193,440.00 193,440.00

Assumptions:
Feeding Duration is 6 mos.
Weight of Cattle at Purchase 200 -250 kgs
Weight of Cattle at Disposal 400 -450 kgs
Average Dalily Weight Gain (AWG) 1.08
Feed Conversion Ratio 0.11
Average Daily Feed Requirement 20.0 kgs.

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Production Costs and Returns

Return on Investment is a way by which the rate of returns of the investment is

arrived at by estimating the annual profit compared with the interest capital.

Table. 9 Cost and Return Analysis for Cattle Fattening Production

COST & RETURN ANALYSIS

Production Cycle (Year 1)

1st 2nd Total
Gross Sales: Fattened Cattle 1,092,000.00 1,092,000.00 2,184,000.00

Expenses
Purchase of Cattle Stock for Fattening 650,000.00 650,000.00 1,300,000.00
Corn Silage 96,720.00 96,720.00 193,440.00
Biologics (Injectable vitamins and minerals) 2,520.00 2,520.00 5,040.00
Caretaker's wages Salary 24,000.00 24,000.00 48,000.00
Land Rental 10,000.00 10,000.00 20,000.00
Electric Power Cost 2,864.40 2,864.40 5,728.80
Depreciation cost 5,681.67 5,681.67 11,363.33
Total Expenses 791,786.07 791,786.07 1,583,572.13

Net Income 600,427.87

ROI (%) 37.92

The table above shows the cost and return analysis for cattle fattening project
that results to a net income of Php 600,427.87 and an ROI of 37.92%.

Table 10. Depreciation Cost (cattle fattening)

Depreciation
Cost (per
Type of Equipment / Facilities Amount (P) Year 1 Year 2 Year 3
Life Span production
(Yrs.) cycle)
Cattle Fattening Structures
Animal Shed 26150 5 2,615.00 5,230.00 5,230.00 5,230.00
Fence 4000 5 400.00 800.00 800.00 800.00
Cattle Fattening Equipment
Chopper (Equipment only) 80000 15 2,666.67 5,333.33 5,333.33 5,333.33

Total 110,150.00 5,681.67 11,363.33 11,363.33 11,363.33

Assumptions:
Depreciation is computed using Straight-Line method without Salvage Value
Depreciation Value is Computed for 1 Production Cycle
Cattle Fattening
Period per
Production Cycle 6 mos.

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Table 11. Cost and Return Analysis for Duck Egg Production

The table below shows the result of cost and return analysis of duck egg
production. Only 1300 female ducks will lay eggs with a laying efficiency of 70-75%
which will produce 289,445 eggs per year so the gross sales is Php 2,026,115.00.

COST & RETURN ANALYSIS

Year 1
Production Cycle Total

Gross Sales : 289,445 Fresh Eggs (per year) 2,026,115.00

Expenses
Duck (ready-to-lay) 270,000.00 270,000.00
Feeds 1,080,000.00 1,080,000.00
Caretakers Wages 48,000.00 48,000.00
Depreciation cost 3,700.00 3,700.00

Total Expenses 1,401,700.00 1,401,700.00

Net Income 624,415.00

ROI (%) 44.55

Table 12. Egg Production

Laying
Egg Produced
Heads Efficiency Yearly Price/egg Total Sales (Annual)
(daily)
Rate (LER)
1,300.00 0.73 949 289445 7.00 2,026,115.00

1 year- 305days 1300 = female

2 months (molting period) 200=male
total of 1500 heads
only 1300 female ducks will lay eggs

Table 13. Depreciation Cost (Duck egg production)

Life Depreciation
Particulars Cost Year 1 Year 2 Year 3
span(yrs) Cost (6 months)
House 8,500.00 5 850.00 1,700.00 1,700.00 1,700.00
Fence 10,000.00 5 1,000.00 2,000.00 2,000.00 2,000.00
Total 18,500.00 1,850.00 3,700.00 3,700.00 3,700.00

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Projected Sales

The table below shows the projected sales of the proposed cattle fattening
project and duck egg production.

Table 14. Projected Sales of Cattle Fattening Production

Year 1 Total Year 2 Year 3
Particulars 1st Cropping 2nd Cropping
Months
1 2 3 4 5 6 7 8 9 10 11 12
Cattle to be fattened 26 26 52 52 52

Multiplied by: Average Selling Php 100 per 420 Php 100 per 420 Php 100 per 420 Php 100 per 420 Php 100 per 420
Price per kilo of the kgs bodyweight kgs bodyweight kgs bodyweight kgs bodyweight kgs bodyweight
liveweight fattened cattle of fattened cattle of fattened cattle of fattened cattle of fattened cattle of fattened cattle
Total Sale 1,092,000.00 1,092,000.00 2,184,000.00 2,184,000.00 2,184,000.00

It is computed based on the number of cattle to be fattened multiplied by the the

average selling price of Php 100 per kilogram of a liveweight fattened cattle results in
Php 1,092,000.00 total sales per cycle.

Table 15. Projected Sales of Duck Egg Production

Year 1
Particulars Month 1 Year 2 Year 3
Total

Fresh Eggs produced 28,470.00 289,445.00 289,445.00 289,445.00

Multiplied by: Price
per egg (Php 7.00) ₱ 7.00 ₱ 7.00 ₱ 7.00 ₱ 7.00
Total Sales ₱ 199,290.00 ₱ 2,026,115.00 ₱ 2,026,115.00 ₱ 2,026,115.00

1 month = 30 days
305 days in one year (2 months molting period)

The table shows that the total sales of duck egg production in one month and in
one year projection. In one month (30 days) 28,470 duck eggs will be produced having a
price of Php 7.00 per egg resulting to a total sales of Php 199,290. For one year
projection 289,445 duck egss will be produced with a total sales of Php 2,026,115.00. It
is only computed for 305 days in one year because 2 months will be the molting period
of ducks.

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 Projected Income Statement

The table below shows the projected income statement per project of the
association.

Table 16.Income Statement of Cattle Fattening

Income Statement of the Association
For the Period Ended
Year 1
Year 2 Year 3
Particulars
st
1 Cycle 2nd Cycle Total

Sales of Fattened Cattle (52 heads in 1 year) ₱ 1,092,000.00 ₱ 1,092,000.00 ₱ 2,184,000.00 ₱ 2,184,000.00 ₱ 2,184,000.00

Less: Production Cost

Purchases (Cattle to be Fattened) ₱ 650,000.00 ₱ 650,000.00 ₱ 1,300,000.00 ₱ 1,300,000.00 ₱ 1,300,000.00
Direct Materials Input
Corn Silage 96,720.00 96,720.00 193,440.00 193,440.00 193,440.00
Cattle Biologics 2,520.00 2,520.00 5,040.00 5,040.00 5,040.00
Direct Labor (Caretaker) 24,000.00 24,000.00 48,000.00 48,000.00 48,000.00
Indirect Cost
Electricity 2,864.40 2,864.40 5,728.80 5,728.80 5,728.80
Land rental 10,000.00 10,000.00 20,000.00 20,000.00 20,000.00
Production Overhead
Depreciation Cost (Shed, fence and chopper) 5,681.67 5,681.67 11,363.33 11,363.33 11,363.33
Total Production Cost ₱ 791,786.07 ₱ 791,786.07 ₱ 1,583,572.13 ₱ 1,583,572.13 ₱ 1,583,572.13
Net Income ₱ 300,213.93 ₱ 300,213.93 ₱ 600,427.87 ₱ 600,427.87 ₱ 600,427.87
ROI (%) ₱ 37.92 37.92 37.92

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 Table 17. Income Statementent of Duck Egg Production
Year Year Year
Particulars Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
1 2 3
Sales
Fresh Eggs 28470 28470 28470 28470 28470 28470 28470 28470 28470 28470 ₱2,026,115.00 ₱2,026,115.00 ₱ 2,026,115.00
Molting period
Total Sales ₱ 199,290.00 ₱ 199,290.00 ₱ 199,290.00 ₱ 199,290.00 ₱ 199,290.00 ₱ 199,290.00 ₱ 199,290.00 ₱ 199,290.00 ₱ 199,290.00 ₱ 199,290.00 ₱2,026,115.00 ₱2,026,115.00 2,026,115.00

Direct Materials
Ducks (ready-to-lay) 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 22,500.00 270,000.00 270,000.00 270,000.00
Feeds 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 1,080,000.00 1,080,000.00 1,080,000.00
Direct Labor (Caretaker) 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 48,000.00 48,000.00 48,000.00
Production Overhead
Depreciation Cost
(house and fence) 308.33 308.33 308.33 308.33 308.33 308.33 308.33 308.33 308.33 308.33 308.33 308.33 3,700.00 3,700.00 3,700.00

Total Cost of Sales 116,808.33 116,808.33 116,808.33 116,808.33 116,808.33 116,808.33 116,808.33 116,808.33 116,808.33 116,808.33 116,808.33 116,808.33 1,401,700.00 1,401,700.00 1,401,700.00

Net Income 82,481.67 82,481.67 82,481.67 82,481.67 82,481.67 82,481.67 82,481.67 82,481.67 82,481.67 82,481.67 624,415.00 624,415.00 624,415.00
Molting Period
ROI (%) 70.61 70.61 70.61 70.61 70.61 70.61 70.61 70.61 70.61 70.61 44.55 44.55 44.55

Assumptions:

Egg Production
Laying
Egg Produced
Heads Efficiency Yearly Price/egg Total Sales (Annual)
(daily)
Rate (LER)
1,300.00 0.73 949 289445 7.00 2,026,115.00

1 year- 305days
2 months (molting period)

1300 = female
200=male
total of 1500 heads
only 1300 female ducks will lay eggs

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Financial Analysis (Return on Investment)

Cattle
ROI based on Average Net Income ₱ 600,427.87
67%
Average Net Income Capital Investment ₱ 896,224.40

Duckery

ROI based on Average Average Net Income ₱ 624,415.00

73%
Net Income Capital Investment ₱ 852,500.00

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 SUSTAINABILITY MECHANISM

The proposed project will be directly under the supervision of the President of the
association. There will be one (1) member of the association will be assigned in cattle fattening
and one (1) also in duckery. It will be closely monitored by the BOD. The proponent will provide
the area for housing of the cattle and ducks.

The 50% of total net income of the project will go to the association for project expansion.
It will be used in the gradual procurement of breeder stocks to be used in the future plan of the
association to engage in breeding project to ensure steady supply of yearlings to the cattle
fattening project. In duck egg production, it will be used also for purchasing another batch of
ducks for peoject expansion

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