The document is a business proposal for a poultry farm focusing on chicken broiler and egg production in the Philippines, outlining an organization and management plan, production strategies, and financial projections. It highlights the growth of the poultry industry, the operational roles of employees, and a detailed budget for startup costs and salary. The proposal also includes market analysis, production goals, and an assessment of the poultry breeds to be utilized.

1. Business Proposal
Submitted by:
Castro, Hazel R.
Aldana, Paulene M.
Dizon, Carmina Jane L.
Submitted To:
Prof. Fernando Pangilinan

4. BUSINESS PROPOSAL CONTENT
I. Introduction
II. Organization Plan
III. Production / Technical Plan
IV. Marketing Plan
V. Financial Plan
VI. Profitability Test/ Indicators

6. Chicken broiler and egg production are the most progressive animal
enterprises in the Philippines today. The poultry industry in fact began as the
backyard enterprise but has shifted to the formation of very large integrated
contract farming operations.
• The growth of poultry industry in the Philippines has been impressive but its
problems include inefficient management and the prevalence of many destructive
poultry diseases and parasites cannot be ignored.
• The chicken is the most exploited species of poultry, which is
utilized for food production in the whole world. Scientific researchers have been
done on this species for past centuries and it is still the focus of the present and
future experimentation. In the Philippines chicken rank first, while ducks rank
second in economic importance as source of meat and eggs.
• The egg layer class is characterized by their comparatively small size. They
lay large white shelled eggs, very active and nervous in temperament. They are
non-sitters. The earlier selection of geneticist for this class showed record of early
maturity that may not necessarily be true with the modern breeds under this class.
Examples: Leghorn, Minorcas, Anconas, Mikawa.
Copyright © 2012 Bureau of Agricultural Research
http://www.bar.gov.ph/agfishtech-home/livestock-poultry/216-poultry/1334-chicken-production

7. • As of January 1, 2015, total chicken population was 176.47 million birds
or 5.25 percent higher than last year's total stocks of 167.67 million
birds. The inventory of broilers and native/improved chicken also went
up by 8.18 percent and 3.31 percent, respectively. Layer chicken
inventory likewise grew by 4.16 percent.
• Total chicken production in 2014 went up by 1.07 percent compared
with last year's volume. On the other hand, chicken egg production for
2014 went down by 2.81 percent from the 2013 level.
• Along with the slight increase in chicken production, the gross value at
current prices for 2014 also went up by 1.07 percent or Php. 143,045.42
millions compared with its value last year.

8. • The value of chicken egg production at current
prices in 2014 increased by 3.96 percent despite
the decrease in production.
http://agstat.psa.gov.ph/?ids=chickensituation

9. • To gain proper knowledge on how to raise
an egg farm
• To know all the advantages and risks in
venturing this kind of business
• To prepare ourselves in handling our own
business

11.  Partnership
A business organization in which two or more
individual manage and operate the business. Both
owners are equally and personally liable for the debts.

12. Owner/Farm Manager
Flock men
Veterinarian Bookkeeper
Security GuardDriver

13. POSITION QUALIFICATIONS
Bookkeeper
-must know how to compute, audit and
must be computer literate.
- must be graduated in any accounting-
related course.
Veterinarian
-must be a licensed veterinarian and
has a specialty in layer production.
Flock men
-must have a knowledge in layering
-must be reliable, hardworking, and
willing to be trained.
Driver
-must have a professional driver’s
license
-must have a knowledge about
proceeding into different locations.
Security guard
-must be brave and came from a reliable
agency.

14. POSITION DUTIES & RESPONSIBILITIES
Owner/ Farm manager
-Manage all the operations in the
farm
-Finance the farm’s cost of production
-They make plans and decisions and
take calculated risk.
Veterinarian
-Visits the farm twice a month or
when needed to monitor the health
of the flock.
-Gives medication and vaccination
program to the flock.
Bookkeeper
-In charge in keeping records of
everyday production, laying efficiency
of the flock, mortality, and other
matters concerning to stocks.

15. Flock men
-Theyensurethatthebirdsgetproper
vaccinationandsupplementation.
- Inchargeintheeverydayactivitiesinthe
farmsuchasfeeding,watering,cleaning
houses,collectingmanure,collectingand
weighingeggsandother.
Driver
-Deliverthecollectedeggstothetarget
market.
Security guard
-Secure the peace and order situation
in the farm.

16. POSITION QUANTITY MONTHLY SALARY BENEFITS
Veterinarian 1
P2,500.00 per visit
(on call)
Bookkeeper 1 P9,000.00
13 month pay ,SSS,
Phil Health
Flock men 4 P7,000.00
13 month pay, SSS,
Phil Health
Driver 1 P5,000.00
13 month pay, SSS,
Phil Health
Security guard 2 P6,000.00
13 month pay, SSS,
Phil Health

18. • The farm will be located at NHA Purok 9,
Telapayong, Arayat, Pampanga.
• The farm will be 1km. away from
residential area.
• Farm to market road is accessible.

19. Pandacaqui Rd.
Magalang-ArayatRd.Magalang-ConcepcionRd
Magalang-Angeles Rd.
San Vicente Rd.
Buensuceso Rd.
Municipality
of Magalang
Telapayong
Elementary School
Telapayong Covered
Court
Telapayong
Church

20. • The “CAD Egg Farm” will be derived from
the first letters of the surnames of the
owners.
C- Castro, Hazel R.
A-Aldana, Paulene M.
D-Dizon, Carmina Jane L.

21. 200m
100m 80m
40m 20m
60m
15m
15m
10m
10m
2m
2m
N
W E
S
6m
6m

22. • The chicks will
be in growing
houses at 1-16
weeks old and
will be vaccine
fowl pox at the
age of 10-12
weeks. After
they reach 16-
17 weeks, they
are transferred
to laying house.
• Chickens will
begin to lay
eggs at 20-22
weeks.
Generally,
layers reach
maximum egg
production
when they are
between 30-36
weeks old,
after which egg
production
tends to
decline and the
chickens will be
culled.
• Eggs will be
collected daily
and will be
grade based on
their weight.
The graded egg
will be
delivered to
the target
market.

23. • The breed that will be Raised by the Farm is Lohmann
Brown chickens, because of its low mortality rate and
high laying Efficiency.
• The stocks will be bought from Rubina Farm in Bulacan
and sometimes from Heritage farm.

24. Description April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb Mar
Preparation of the
business plan
Preparation of the
land
Construction of the
farm
Applying for the
business permit
Buying of chicks
Feeding the chicks
with starter mash
Feeding the chicks
with developer mash
Feeding the chicks
with laying mash
Collection of eggs
Collection of manure

25. Equipment Quantity Price per Unit Total cost
Egg grading
machine
1 P35,000 P35,000
Generator 1 200,000 200,000
Pail 6 50 300
Truck 1 350,000 350,000
Jetmatic 2 8,000 16,000
Shovel 3 650 1,950
Water host 130ft 25/ft 3,250
Broom stick 3 16 48
Feeder container 500 20 10,000
Tray 500 4 2000
Dust pan 3 20 60
Push Cart 3 1500 4500

26. Pantabas 2 450 900
Power Sprayer 2 5500 11,000
Total P653,008

28. Product
Price
Place
Promotion

30. SIZES PRICE /PIECE
Small P4
Medium P4.33
Large P4.83
Extra Large P5.33
Cracked P3

31. Place
The CAD Egg farm will be located at
NHAPurok 9Telapayong,Arayat,
Pampanga with an area of 2 hectares.

32. 30%
25%
20%
15%
10%
Magalang Public Market
Angeles Public Market
Arayat Public Market
Mabalacat Public Market
Pick up buyers

33.  Word of mouth
 T-shirt
CAD Egg
Farm

35. The capital requirement is P 7,000,000
which will be loan from the BDO with 12%
interest per annum.
Two of the owners will be providing
P3,000,000 and one of the owners will
contribute P1,000,000 and the 2 hectare land
that they will use.

36. Loan Payment Interest Total Payment
of Loan
1st year P7,000,000 P1,400,000 P7,000,000 x 12% P840,000 P2,240,000
2nd year P5,600,000 P1,400,000 P5,600,000 x 12% P672, 000 P2,072,000
3rd year P4, 200,000 P1,400,000 P4, 200,000 x 12% P504,000 P1,904,000
4th year P2,800,000 P1,400,000 P2,800,000 x 12% P336,000 P1,736,000
5th year P1,400,000 P1,400,000 P1,400,000 x 12% P168,000 P1,568,000

38. Description Quantity Price/unit Total
Laying House 2 600,000 1,200,000
Brooder House 2 350,000 700,000
Laborers House 1 250,000 250,000
Storage house
For Eggs
1 200,000 200,000
Office 1 100,000 100,000
Guard House 1 50,000 50,000
Tools and
Equipment house
1 150,000 150,000
Total P2,650,000

39. Feeds
Age of
Chick
No. of Sack Price Total
Starter
Mash
1-6 weeks 130 P1,000 P130,000
Developer
Mash
6-20 weeks 295 P1,000 P295,000
Laying
Mash
20-80
weeks
1260 P1,050 P1,323,000
Total P1,748,000

40. Names Salary
Quantit
y
Monthly Contribution
Total
contributi
on in SSS
Employer
Yearly
contributi
on
Employer Employee
Bookkeeper P9,000.00 1 P 636.00 P 300.00 P 936.00 P 7,632
Flockmen P7,ooo.oo 4 1,978.8 933.2 2,912 23, 754
Driver P5,000.00 1 353.30 166.70 520 4239.6
Security
guard
P6,000.00 2 848 400.00 1,248
10, 176
Total P 3, 815 P 1,799.9 P 5,616 P45,801.6

41. Names Salary Quantity
Monthly Contribution Total
contribution
in Phil
Health
Employer
Yearly
contributionEmployer Employee
Bookkeeper P9,000.00 1 P 112.50 P 112.50 P 225 P 1,350
Flockmen P7,000.00 4 350 350 700 4,200
Driver P5,000.00 1 62.50 62.50 125 750
Security guard P6,000.00 2 150 150 300 1,800
Total P 675 P 8,100

42. Description Quantity Monthly Yearly
Electricity (power
and water supply)
1 month
P18,000 P216,000
Salary of the
employees
9 P56,500 P678,000
Permits
-BIR
-DTI
-Mayor’s Permit
1
1
1
P3,000
P500
P2,000
Gasoline P4,500 P54,000
Bonuses P56,000
SSS P3, 815 P45,801.6
Phil Health P 675 P 8,100
Advertising expense 100 P20,000
Total P1,083,401.6

43. Description Quantity Price/unit Total Cost
Lohmann Bird 10,000 P37.00 P370,000
Medication and
Vaccination
10,000 P 70, 000/year P70,000
Total
P440,000

44. Cost of Production Total
Farm construction P2,650,000
Layer Expense P440,000
Tools and Equipments P653,008
Feeds P1,748,000
Overhead Expenses P1,083,401.6
TOTAL COST OF PRODUCTION P6,574,409.6

45. MONTHS NO.OF DAYS
NO.OF
LAYERS
EGGS/DAY
Laying
Efficiency
EGGS/Mont
h
September 30 10,000 0
October 31 9,990 0
November 30 9,960 0
December 31 9,950 0
January 31 9,945 6700 67% 207,700
February 28 9,860 6800 69% 190,400
March 31 9,802 6900 70% 213,900
April 30 9,716 7100 73% 213,000
May 31 9,693 7200 74% 223,200
June 30 9,608 7900 82% 237,000
July 31 9,564 6700 70% 207,700
August 31 9,500 6800 72% 210,800
Total 1,703,700

46. Size Price
% of
production
Quantity Total
Small P4 15% 255,555 P1,022,220
Medium P4.33 25% 425,925 P1,844,255
Large P4.83 30% 511,110 P2,468,661
Extra large P5.33 25% 425,925 P2,270,180
Cracked/Reject P3 5% 85,185 P255,555
Manure P10 800 sacks P8,000
Total Gross
Income
P7,868,871.80

47. MONTHS NO.OF DAYS
NO.OF
LAYERS
EGGS/DAY
Laying
Efficiency
EGGS/Mont
h
September 30 9,490 6,700 71% 201,000
October 31 9,485 6,695 71% 207,545
November 30 9,480 6,690 71% 200,700
December 31 9,480 6,685 71% 207,235
January 31 9, 479 6,680 70% 207,080
February 28 9, 477 5,675 60% 158,900
March 31 9, 470 5,670 60% 175,770
April 30 9, 469 5,665 60% 169,950
May Cleaning and Maintenance of the layer houses
June 30 9, 995 6,800 68% 204,000
July 31 9, 990 6,850 69% 212,350
August 31 9, 985 6,900 69% 213,900
Total P2,158,430

48. Chickens will be Culled in approximately 1
year and 8 months
Price of the eggs will increase 2% per annum

49. Size Price
% of
production
Quantity Total
Small P4.08 10% 215,843
P880,639
Medium P4.42 30% 647,529
P2,862,078
Large P4.93 25% 539,608
P2,660,265
Extra large P5.44 25% 539,608
P2,935,465
Cracked/Reject P3.06 10% 215,843
P660,480
Manure P10 800 sacks P8,000
Total Gross
Income P10,006,927

50. MONTHS NO.OF DAYS
NO.OF
LAYERS
EGGS/DAY
Laying
Efficiency
EGGS/Month
September 30 9,980 6,560 66% 196,800
October 31 9,977 7,695 77% 238,545
November 30 9,970 7,290 73% 218,700
December 31 9,965 7,185 72% 222,735
January 31 9,962 7,990 80% 247,690
February 28 9,959 7,875 79% 220,500
March 31 9,955 6,670 67% 206,770
April 30 9,953 6,675 67% 200,250
May 31 9,950 6,670 67% 206,770
June 30 9,948 6,600 66% 198,000
July 31 9,943 6,550 66% 203,050
August 31 9,941 6,400 64% 198,400
Total 2,558,210

51. Size Price
% of
production
Quantity Total
Small P4.16 9% 230,239
P957,794
Medium P4.50 32% 818,627
P3,683,822
Large P5.03 26% 665,135
P3,345,627
Extra large P5.55 25% 639,553
P3,549,516
Cracked/Reject P3.12 8% 204,657
P638,529
Manure P10.00 800 sacks P8,000
Total Gross
Income P12,183,289

52. MONTHS NO.OF DAYS NO.OF LAYERS EGGS/DAY
Laying
Efficiency
EGGS/Month
September 30 9,850 6,580 67% 197,400
October 31 9,760 6, 330 65% 196,230
November 30 9,690 6,260 65% 187,800
December 31 9,570 6,140 64% 190,340
January 31 9,430 6,820 72% 211,420
February Cleaning and Maintenance of the layer houses
March 31 9,955 7,850 79% 243,350
April 30 9,953 7,840 79% 235,200
May 31 9,950 7,760 78% 240,560
June 30 9,948 7,650 77% 229,500
July 31 9,943 7,640 77% 236,840
August 31 9,941 7,590 76% 235,290
Total 2,403,930

53. Size Price
% of
production
Quantity Total
Small P4.24 8% 192,314 P815,413
Medium P4.60 35% 841,376 P3,870,327
Large P5.13 27% 649,061 P3,329,683
Extra large P5.66 23% 552,904 P3,129,436
Cracked/Reject P3.18 7% 168,275 P535,115
Manure P10.00 800 sacks P8,000
Total Gross
Income
P11,687,975

54. MONTHS NO.OF DAYS NO.OF LAYERS EGGS/DAY
% of
Production
EGGS/Month
September 30 9,939 7,560 76% 226,800
October 31 9,935 7,660 77% 237,460
November 30 9,927 8,790 89% 263,700
December 31 9,919 8,790 89% 272,490
January 31 9,908 7,780 79% 241,180
February 28 9,897 7,770 79% 217,560
March 31 9, 889 6,750 68% 209,250
April 30 9,870 6,780 69% 203,400
May 31 9,864 6,760 69% 209,560
June 30 9, 857 6,740 68% 202,200
July 31 9, 848 6,720 68% 208,320
August 31 9, 832 6,630 67% 205,530
Total 2,697,450

55. Size Price
% of
production
Quantity Total
Small P4.33 8% 215,796 934,397
Medium P4.69 35% 944,108 4,427,864
Large P5.23 27% 728,312 3,809,069
Extra large P5.77 23% 620,414 3,579,786
Cracked/Reject P3.25 7% 188,822 613,670
Manure P10.00 800 sacks P8,000
Total Gross
Income
P13,372,786

57. Description Quantity Price/unit Total
Farm Land 2 hectares P1,000,000 P2,000,000
Laying House 2 600,000 1,200,000
Brooder House 2 350,000 700,000
Laborers House 1 250,000 250,000
Storage house
For Eggs
1 200,000 200,000
Office 1 150,000 150,000
Tools and
Equipment house
1 150,000 150,000
Total P2,650,000

59. Equipments
Cost Analysis 1st
year
Cost Analysis 2nd
year
Cost Analysis 3rd
year
Cost Analysis 4th
year
Cost Analysis 5th
year
Egg grading
machine
P35,000
Generator 200,000
Pail 300 309 318.27 327.8181 337.6526
Truck 350,000
Jetmatic 16,000
Shovel 1,950
Water host 3,250
Broom stick 48 49 50.47 51.9841 53.54362
Feeder
container
10,000 10,300 10609 10927.27 11255.09
Tray 2000 2,060 2121.8 2185.454 2251.018
Dust pan 60 62 63.86 65.7758 67.74907
Push Cart 4500 4,635 4774.05 4917.272 5064.79
Pantabas 900 927 954.81 983.4543 1012.958
Power sprayer 11,000 11,330 11669.9 12020 12380.6
Total P653,008 P29,672 P30,562.16 P31,479.02 P32,423.4

61. Description Cost Analysis
1st year
Cost Analysis
2nd Year
Cost Analysis
3rd Year
Cost Analysis
4th Year
Cost Analysis
5th Year
Lohmann Bird P370, 000 P381,100 - P392,533 P404,309
Medication
and
Vaccination
P70,000 P 72,100 P74,263 P76,490 P78,785
Starter Mash P130,000 P133,900 P137,917 P142,055 P146,317
Developer
Mash
P295,000 P303,850 P312,966 P322,355 P332,026
Laying Mash P1,323,000 P1,362,690 P1,403,571 P1,445,678 P1,489,048
Total P2,188,000 P2,253,640 P1,928,716 P2,379,111 P2,450,485

63. Description
Cost Analysis
1st Year
Cost Analysis
2nd Year
Cost Analysis
3rd Year
Cost Analysis
4th Year
Cost Analysis
5th Year
Electricity
(power and
water supply)
P216,000
222,480 229,154 236,029 243,110
Salary of the
employees
P678,000 698,340 719,290 740,869 763,095
Permits
-BIR
-DTI
-Mayor’s
Permit
P3,000
P500
P2,000
3,090
515
2,060
3,183
530
2,122
3,278
546
2,186
3,376
562
2,252
Gasoline P54,000 55,620 57,289 59,008 60,778
Bonuses P56,000 57,680 59,410 61,192 63,028
SSS P45,801.6 47,175.6 48,590.9 50,048.6 51,550.05
Phil Health P 8,100 8,343 8,593.3 8,851.1 9,116.6
Advertising P20,000 20,600 21,218 21,854.54 22,510.18
Total P 1,083,401.6 P 1,115,903.6 P1,149,380 P1,183,862 P1,219,378

65. Cost of Production Total
Farm construction P2,650,000
Layer Expenses P2,118,000
Equipments P653,008
Overhead Expenses P 1,083,401.6
TOTAL COST OF PRODUCTION P6,574,409.6
Return Total
Total Gross Income P7,868,871.80
Total Cost of Production P6, 574,409.6
Loan Payable P2,240,000
TOTAL NET INCOME P-945,537.80

66. Cost of Production Total
Layer Expenses P2,181,540
Equipments P29,672
Overhead Expense P 1,115,903.6
TOTAL COST OF PRODUCTION P3, 327,115.6
Return Total
Total Gross Income P10,006,927
Total Cost of Production P3, 327,115.6
Loan Payable P2,072,000
TOTAL NET INCOME P4,607,811

67. Cost of Production Total
Layer Expenses P2,246,986
Equipments P30,562.16
Overhead Expense P1,149,380
TOTAL COST OF PRODUCTION P3, 426,928.16
Return Total
Total Gross Income P12,183,289
Total Cost of Production P3, 426,928.16
Loan Payable P1,904,000
TOTAL NET INCOME P6,852,361

68. Cost of Production Total
Layer Expenses P2,314,397
Equipments P31,479.02
Overhead Expense P1,183,862
TOTAL COST OF PRODUCTION P3, 529,738.02
Return Total
Total Gross Income P11,687,975
Total Cost of Production P3, 529,738.02
Loan Payable P1,736,000
TOTAL NET INCOME P6,422,236.98

69. Cost of Production Total
Layer Expenses 2,383,829
Equipments P32,423.4
Overhead Expense 1,219,378
TOTAL COST OF PRODUCTION P 3,635,630.4
Return Total
Total Gross Income P13,372,786
Total Cost of Production P 3, 635,630.4
Loan Payable P1,568,000
TOTAL NET INCOME P8,169,155.6

70. 1st
Year 2nd
Year 3rd
Year 4th
Year 5th
Year
Total
Gross
Income
P7,868,871.80 P10,006,927 P12,183,289 P11,687,975 P13,372,786
Total
Cost of
Producti
on
P6,574,409.6 P3, 327,115.6 P3, 426,928.16 P3,529,738.02 P3,635,630.4
Loans
Payable P2,240,000 P2,072,000 P1,904,000 P1,736,000 P1,568,000
Total Net
Income P-945,537.80 P4,607,811 P6,852,361 P6,422,236.98 P8,169,155.6

71. VI. Profitability Indicators

72. ROI = Total Net Income x 100
Total Cost Production
1st year 4th year
P-945,537.80 x 100% P6,422,236.98 x100%
P6,574,409.6 P3,529,738.02
=-14.38% =181.95%
2nd year 5th year
P4,607,811 x100% P8,169,155.6 x100%
P3,327,115.6 P3,635,630.4
=138.49% =224.70%
3rd year
P6,852,361 x 100%
P3,426,928.16
=199.96%

73. PPU = Total Selling Price
No. of Products
1st year 4th year
4+4.33+4.83+5.33+3 4.24+4.60+5.13+5.66+3.18
5 5
= 4.29/egg =4.56/egg
2nd year 5th year
4.08+4.42+4.93+5.44+3.06 4.33+4.69+5.23+5.77+3.25
5 5
=4.39/egg = 4.65/egg
3rd year
4.16+4.50+5.03+5.55+3.12
5
=4.47/egg

74. BEP= Total Cost of Production
Price per Unit
1st year 4th year
P6,574,409.6 P3,529,738.02
4.29 4.56
=1,532,496 eggs =774,065 eggs
2nd 5th year
P3, 327,115.6 P3,635,630.4
4.39 4.65
=757,885 eggs =781,856 eggs
3rd year
P3,426,928.16
4.47
=766,662 eggs

75. CPU= Total Cost of Production
Volume of Production
1st year 4th year
P6,574,409.6 P3,529,738.02
2,159,700 3,199,930
=3.04 cost to produced egg =1.10
2nd year 5th year
P3, 327,115.6 P3,635,630.4
2,915,430 3,550,450
=1.14 =1.02
3rd year
P3,426,928.16
3,259,210
=1.05

76. 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR
TGI P7,868,871.80 P10,006,927 P12,183,289 P11,687,975 P13,372,786
TCP P6,574,409.6 P3, 327,115.6 P3, 426,928.16 P3,529,738.02 P3,635,630.4
TNI P-945,537.80 P4,607,811 P6,852,361 P6,422,236.98 P8,169,155.6
ROI 17.62% 243.66% 297.25% 291.23% 342.70%
CPU 3.04 1.14 1.05 1.1 1.02
PPU 4.29/eggs 4.39/eggs 4.47/eggs 4.56/eggs 4.65/eggs
BEP
1,532,496 eggs
eggs
757,885 eggs 766,662 eggs 774,065 eggs 781,856 eggs
VOP 2,159,700 2,915,430 3,259,210 3,199,930 3,550,450

77. Thank You!!!