Project Proposal

1. NATIVE CHICKEN PRODUCT
10-10-2016

3. Introduction
 Philippine native chicken is the common fowl
found in the backyards of most rural households.
 It is a mixture of different breeds and believed to
have descended from the domesticated red jungle
fowl.
 It is estimated that 54.74% of the total chicken
population of the country are Native Chicken
native (UPLB, 2001) distributed as follows:
Western Visayas, 13.32%; Southern Mindanao,
10.63%; Southern Tagalog, 9.51%; Central
Visayas, 10.36%; Cagayan Valley, 9.29%.

4.  Native chickens are raised under the free-
range system of management. Under this
system of management, the chickens are
allowed to forage and look for their own food.
 The raising of native chickens is an integral
part of the farming systems of the Filipino
farmers as they are the main source of eggs
and meat for backyard farmers.
 Each household raise about five to 100 heads
of native chicken.

5.  Native chickens are well known for their
adaptability to local agro-climatic conditions,
hardiness, ability to utilize farm-by-products and
resistance to diseases. Moreover, they require
minimal care, management and inputs.
 Meat and eggs of native chickens are preferred by
many Filipinos over the same products from
commercial poultry because of their taste,
leanness, pigmentation and suitability to Filipino
special dishes. Moreover, native chicken meat
and eggs are priced higher than those coming
from commercial poultry.

6. Organic farming
 Organic farms attempt to provide animals with
"natural" living conditions and feed
Ample, free-ranging outdoor access, for grazing
and exercise, is a distinctive feature, and
crowding is avoided
 Feed is also organically grown, and drugs,
including antibiotics, are not ordinarily used (and
are prohibited under organic regulatory regimes)
 Animal health and food quality are thus pursued in
a holistic "fresh air, exercise, and good food"
approach.

8. Organic farming systems
 Biodynamic agriculture- method of organic
farming that treats farms as unified and individual
organisms( emphasizing balancing
the holistic development and interrelationship of
the soil, plants, animals as a self-nourishing
system without external inputs)
 Do Nothing Farming method- no fertilizer farming
 Biointensive- focuses on maximum yields from the
minimum area of land, while simultaneously
improving the soil

10. Background
 Zoologically, the native chicken belongs to the genus
Gallus of the family Phasianae. The domestic chicken
is simply called Gallus domesticus.
 The wild ancestors of the domestic chicken probably
originated in the South east Asia and four species of
these white jungle fowls are still known in the area.
There are: Gallus gallus, the red jungle fowl; Gallus
layette, the Ceylones jungle fowl; Gallus sonnerati, the
gray jungle fowl; and Gallus various, the black or
green jungle fown. However, the red jungle fowl has
the widest distribution of the wild species and may
well be
the chief ancestor of the modern breeds.

11. The Darag
 Darag is a general term used of the Philippine
native chicken strain indigenous to and most
dominant in Western Visayas. It evolve from the
Red Jungle fowl.
 The male locally called labuyo has red wing and
hackle and black feathers and tail. The female,
also called Darag, is typically yellowish-brown.
 The comb is single, the earlobe is whitish and the
shank gray for both male and female. The
adult male weighs an average of 1.3 kg while the
female weighs an average of 1.0 kg.

13. The Stages of Development
 Mature Darag hens, called breeders, lay eggs.
 Eggs will hatch from 18-21 days
 Chicks go through brooding stage from the first
week to the twentieth day.
 From 21-45 days, chicks go through the
“hardening” stage. During hardening, chicks are
prepared for the rugged conditions of the
environment, thus improving the livability of
chicks.
 “Hardened” chicks are then left to grow in the
field.
 At age 75-120 days, the chickens are mature and
ready for slaughter.

14. Improved Management
Practices
 Housing
-Provide the chickens with shelter made of
bamboo, scrap wood, wire mesh or net for
their protection against predators and the
effects of the elements of weather .
- Provide an adequate area of range for the
birds to have free access to natural food.

16. Selecting the Stock
- To raise productive chickens select hens that are healthy, broody
and have demonstrated good laying ability
- Use roosters that are aggressive, healthy and that come from flocks
of fast growers or high egg producers
- - The native rooster is ready for breeding at age 20-24 weeks.
- Keep just one rooster to a flock of 5-10 hens to produce the
satisfactory number of fertile eggs for hatching.
- - The native hen start laying eggs between 18-20 weeks of age.
- - Provide baskets covered with dried banana leaves, hay or sack to
serve as nests to layers. This will minimize egg breakage and
ensure egg cleanliness and safety from predators.
- - The native hen lay about 40-60 eggs/year under the traditional
management system, however, with improved management system
and better nutrition, native hens can lay 130-200 eggs/year, each
weighing about 50 g

17. Incubation
 - Incubate only sound eggs that are 40-50 g each,
with good ovoid shape and sound shell quality
 - Collect eggs and store them in a cool, dry place
 - Store hatching eggs for a maximum of 10 days
under normal room temperature. Storage beyond
this period will decrease the fertility of the eggs.
 - For natural incubation, set a batch of 10-12 eggs
under one hen. Small number of eggs from
different hens can be collected and set just under
one broody hen. This will prevent the onset of
broodiness on the other laying hens.

19.  - If a bigger number of eggs are to be hatched, use
incubators to artificially hatch them.
 Broodiness is the hen’s instinct to sit on the egg for
incubation and hatching. This contributes directly to
low egg production. Prevent the onset of broodiness
by collecting eggs daily. This will encourage the hen
to lay more eggs.
 When incidences of broodiness are encountered,
shorten and break this period by either confining the
broody hens individually for 5 days in cages located in
a well-lighted and well-ventilated area or by
submerging the hen in a pail of water for 5 minutes
before releasing it to the flock

20. Brooding
Natural method
 The traditional way of brooding allows the hen to
naturally nurture her chicks. The hen provides the
needed heat to the chicks from her body. Also the
chicks are allowed to tag along the hen to look for
their food.
 When a hen hatched only a few eggs, put the newly
hatched chicks together with other newly hatched
chicks of another hen
 Encourage hens to resume laying eggs by separating
the newly hatched chicks from the hens. The native
chicks can then be artificially brood.

22. Artificial brooding
 House the newly hatched native chicks to protect them from predators and
the effects of weather extremes
 - Provide curtains made of old sacks, cloth or newspapers to the sides of
the house to regulate the brooding temperature
 - Roll the curtains up and down to maintain proper temperature and
ventilation
 - Keep the chicks warm during the first month by using artificial brooders
 - Some common artificial brooders are:
 - kerosene lamps, with wire around them to prevent the chicks from getting
too close to the hot surface
 - electric bulb, as a rule 1 watt is good for a chick; therefore a 25-watt bulb
is good for approximately 25 chicks
 - During hot months, specially during the day, when no artificial source of
heat is necessary, the brooders should be removed or turned off
 - Observe the behavior of the chicks as this is a good indicator of brooding
temperature
 - Provide the chicks with local feeds or commercial chick feeds during
brooding. After a period of 3-4 weeks of artificial brooding, gradually allow
the chicks to forage and train them to look for their own food in the range.

24. Feeds and Feeding
 Proper nutrition is essential in keeping the birds healthy and productive.
 - Let the birds loose in the range to allow them access to natural feeds like
worms, grains, seeds, insects, greens and other sources
 - Give supplement feeds to the birds during summer months when feeds in
the range is scarse, and also during increment weather
 - Practice supplementation with high-energy feedstuffs like corn, palay and
grated coconut or farm-mixed formulations during these times. This will give
the chickens the energy source that they rarely find in the field.
 - The supplement feedstuffs can be made available in the house early
morning, before the birds are allowed to free range, and in the afternoon to
develop their homing instinct
 - Commercial feeds can be given, if local feeds are scarse and not
available, however, this is not economical because the native birds are not
as efficient as commercial poultry
 - Provide clean and fresh water to the birds everyday.
 - Bamboo poles split in half can be used as feeders and waterers.
 - Commercially available feeders and waterers can also be adapted. Keep
in mind the proper design and size of feeders to minimize feed wastage.

26. Benefits
 Slowly, the value of native chicken has been
recognize. In addition to its common
contribution in the form of eggs and meat, as a
source of additional income to the rural
farmers during lean months of the year and as
object for recreation in the form of
cockfighting. Many people in the urban areas
are now looking at the native chicken as a
source of nutritious food.

28.  City residents who lead a more sedentary life
prefer foods that are low in cholesterol. Their
preference is now shifting to the eggs coming
from native chicken which, being small, are
also believed to supply a small amount of
cholesterol. Aside from that, native birds and
eggs are tastier and more savory than the
improved breeds. This explains why, kilo for
kilo, native poultry products are more costly
than those of the exotic breeds.

29.  In 1998, PCCARD finally characterized the Philippine
native chicken as the common backyard fowl, which is
a mixture of different breeds. They are small, active,
sensitive and capable of great flights when frightened.
The hens are fairly good sitters and mothers, but
unlike the native cocks that are being raised for
cockfighting and fed with the best feed and sheltered
comfortably, the native hens are not good in nests. At
best, bamboo baskets covered with dry grass of
banana leaves placed under the housed hens to serve
as nests, and the trees that grow in premises serves
as their perches. Despite all these, a native chicken
lays about 40-60 eggs in a year. However, recent
findings showed that when properly managed and fed
with the right quality and amount of feeds, tha native
hen can produce as much as 130-200 eggs in a year.

30.  They also serve as cheap source of animal
protein through their meat and eggs. Although
native chickens grow at a slower rate and
produce less number of eggs than improved
commercial breeds, meat from native chickens
are preferred by many Filipinos because of
taste, leanness, pigmentation and
sustainability for special dishes.

31. PROJECT FINANCING
Funds needed
For the project to be implemented in the pilot area, it will need the
amount of Four Million Forty Thousand (P 4,040,000.00) pesos, to
cover 80% total project cost since the 20% or about P1,010,000.00
shall be taken cared of by the BIAD as counterpart. The said
production and pre-production costs are broken down as follows:
Input description Amount
Pre-Production Inputs:
a) Improved Native Chicken Production Seminar; 100 farmer-
recipients for 2 days P 40,000.00
b) Site Qualification & documentation P10,000.00
Sub-Total P 50,000.00

32. Production Inputs:
 a) Chicken house (approx. 40 sq. m.)
10,000.00
 b) Enclosure net (approx. 3 rolls; @ 1,500/roll) 4,500.00
 c) Foundation stock (50 ready-to-lay pullets @ 150/each) 7,500.00
(10 cocks@ 200/each) 2,000.00
 d) Incubator (cap.) 10,000.00
 e) Brooding equipment 4,000.00
 f) Initial Working Capital 11,000.00
P 50,000.00
X 100 production modules P 5,000,000.00
T O T A L P 5,050,000.00

33. Financial Viability
 a. Cost – Benefit Ratio = 1:1.15
 b. ROI = 115%
 c. PAYBACK PERIOD = 0.87 YR

34. Improved Native Chicken production
Projected Income Statement PerFarmerBasis
 Basic Assumptions:
 1. Each hen will lay an average of 150 eggs annually.
 2. Only 75% or about 112 eggs from each hen will be allowed to
hatch from which 95% or about 106 will reach market.
 3. The remaining 38 eggs per hen or about 25% shall be sold as
table egg.
 4. The foundation stocks of 50 pullets are 4-5 months old and are
all ready to lay, and cocks ready to breed.
 5. The average weight of the chicken at market shall be at 1.2 kg.
live at 4 months old.
 6. Supplemental feeding shall be placed at an average of 10 grams
per chicken daily.

35.  7. For purposes of analysis, supplemental feed to be used is
commercial PDP @ 15.00 per kg.
 8. Price for the egg shall be sold at 5.00 each at farm gate.
 9. Chicken population at any given time is placed at 3,560 including
parent stocks.
Sales: 50 hens/farmer x 106 MC/hen x 1.2 kg/chicken x 125.00/kg = P
795,000.00
50 hens x 38 eggs/hen x 5.00/egg = 9,500.00
P 795,000.00
9,500.00
 TOTAL SALES
 P 804,500.00

36.  LESS:
 Operating Expenses:
 Feed: 5,360 chicken x 10 grms/head x 15.00/kg. x 365 days = P
293,460.00
 Labor: 1 farm aide x 1,500.00/month x 12 months = 18,000.00
 Power & water: lump @ 1,000/month x 12 months = 12,000.00
 Depreciation = 8,067.00
 Cost of Money (ave. 27,000/mo @ 2%/mo. for 12 months) =
42,120.00
 TOTAL
P 373,647.00______________
 GROSS INCOME BEFORE TAX
 P 430,853.00

37. DEPRECIATION SCHEDULE
 Amount E SL(in yrs) DC
a) Chicken house (approx. 40 sq. m.) 10,000.00 5
2,000.00
b) Enclosure net (approx. 3 rolls; @ 1,500/roll) 5,500.00 5
1,100.00
c) Foundation stock (50 ready-to-lay pullets @ 150/each) 7,500.00
3 2,500.00
(10 cocks@ 200/each) 2,000.00 3 667.00
 Incubator (cap.) 10,000.00 10 1,000.00
 Brooding equipment 4,000.00 5 800.00
P 8,067.00

38. INTEREST SCHEDULE
 27,000 X 24% = 6,480.00
 27,000 X 22% = 5,940.00
 27,000 X 20% = 5,400.00
 27,000 X 18% = 4,860.00
 27,000 X 16% = 4,320.00
 27,000 X 14% = 3,780.00
 27,000 X 12% = 3,240.00
 27,000 X 10% = 2,700.00
 27,000 X 8% = 2,160.00
 27,000 X 6% = 1,620.00
 27,000 X 4% = 1,080.00
 27,000 X 2% = 540.00
 TOTAL P 42,120.00