Presentation in Farm Management Project in Farm Management

1. FARM BUSINESS
MANAGEMENT
PETMALU’S BROILER ENTERPRISE
Prepared by: GROUP 3
Juliet Nicol
Alyssa Magalona
Wilmar Manatad
Zaira Ramirez
Jamaica Ordiales
Melvin Pancipane
Hazel Mae Adra
Vanessa Mae Oraye
Celine Marie Paguio
May Dayandante
III-BAT-ATE1
Bicol University
College of Agriculture and Forestry
Guinobatan, Albay

2. CHAPTER 1
Introduction
Significance of Enterprise
Development Project
Objectives of the Enterprise
Development Project

3. Broiler production is one of the
money maker in the country today and
it is one of the most important areas in
agriculture industry. It only requires a
small amount of capital to start a small
scale business. The growing period is
very short and it only requires a small
investment.

4. Furthermore, it is manageable and a
profitable enterprise. Thus, the
Agricultural Technology Students deals
with this kind of Enterprise Development
Project (EDP) to prove that it is worthy to
engage in, which inspires not only
students but also other people who wants
to learn how to manage as well as to
encourage them to improve their quality
of living.

5. Significance of the Enterprise
Development Project
The Enterprise Development Project
(EDP) provides the students the opportunity to
enhance their managerial and interpersonal
skills in establishing and managing a small
enterprise.
Through this, students were able to apply the
knowledge they learned from their experience,
discussion inside the classroom and additional
ideas and useful information tackled by their
mentors.

6. This help also to the students to
develop their skills and characteristics
as future entrepreneurs by
performing managerial functions such
as planning, organizing, staffing,
directing, controlling, problem solving
and decision making.

7. The innovativeness, resourcefulness,
perseverance, self- confidence and risk taking
ability of students were also developed. It also
provides the students the chance to gain
additional knowledge during its actual
implementation and operation and provided
them avenue to develop their entrepreneurial
and managerial skills and traits that can be
very useful in facing real life challenges after
they have graduated.

8. EDP is not only significant to students
but also to other people and to the
community. It provides employment, it
increases sales and gives additional income
to the owner and supplies of inputs, it
benefits the customer by the quality product
produced and services rendered to them. It
also gives student hands on experience on
how to handle their own enterprise.

9. Objectives of the Enterprise
Development Project
The General Objectives of the
Enterprise Development Project is to
give an opportunity to the students to
experience the actual establishment
and management of a broiler enterprise
and develop entrepreneurial and
managerial skills and traits.

10. The Specific Objectives are as follows:
1. To acquire additional knowledge through the
actual establishment and management of a
broiler enterprise.
2. To apply the knowledge learned in Farm
Business Management.
3. To produce good quality broiler products with
an average dressed weight of 1.3 kilograms
and 1.6 kilograms live weight for a rearing
period of 35 days.
4. To generate a RETURN On Investment(ROI)
of 20.02% for a period of 35 days.

11. Chapter 2
THE ENTERPRISE
DEVELOPMENT
PROJECT

12. PETMALU’S Broiler Enterprise
ENTREPRENEUR
MELANIE PACLIBAR
Caretaker
LABORER
Figure 1. PETMALU’S Broiler EnterpriseOrganizational Chart

13. Table 1. Planned andActual Labor Cost
Caretaker’s labor Fee
No. of days worked
Rate/day
Labor Fee
Entrepreneur’s Labor Fee
No. of days worked
Rate/day
Labor Fee
Labor for dressing
No. of days for dressing
No. of Laborers
Rate/chick
No. of Chicks
Labor Fee
TOTAL LABOR COST
35 days
₱35.00
₱1225.00
10 days
₱50.00
₱500.00
2
2
6
95
₱570.00
₱2295.00
34 days
₱35.00
₱1190.00
10 days
₱50.00
₱500.00
2
2
6
98
₱588.00
₱2278.00

15. Figure 2: Gantt Chart of Broiler Activities

17. Financing
Financing is one of the most important
aspects of the enterprise. The enterprise was
financed solely by the owner’s equity
amounting to ₱15,000.00 which was higher
than the plan because of higher cost of
stocks, veterinary drugs, marketing expenses
and the additional feed requirements of the
chicks. The manner of investing the capital
was resource – matching investment.

18. Figure 3: Project Location

19. Renting the Poultry House
According to the plan, the entrepreneur rented a poultry
house from Mrs. Melanie Paclibar. The rental fee was ₱800.00 in
one cycle of operation. In the plan, half of the amount (₱400.00)
will be given at the start of operation and the remaining amount
will be paid after generating sales but in actual, the owner of the
poultry house and the entrepreneur agreed that the payment of
the rental fee will be given within the week after loading the
stocks due to the needs of the poultry house owner. They also
agreed that the use of electricity, farm supplies such as pail,
broom, waterers, feeders, extension wire and receptacles were
already included. The poultry house was made of galvanized
iron for roofing, the floors were made of Bamboo, the walls were
made of plastic screen. The whole poultry house measured 7m x
12m but only an area of 9.3 sq. Meters (3.05m x 3.05m) was
utilized by the project in one cycle. Figure 4 shows the Sketch of
the Poultry House. Plate 1 shows the picture of the poultry house
used in one cycle.

20. Figure 4: Sketch of the Poultry House

21. Plate 1: Picture of Actual Poultry House

22. Cleaning and Disinfecting of Poultry
House
The poultry house was cleaned and
disinfected to remove harmful microorganisms
inside the poultry house. This was done two (2)
days before loading. The caretaker was the one
who cleaned and disinfected the poultry house.
Cleaning was done using brush and water with
powdered soap. Chlorine was used as disinfectant.
One (1) pack of chlorine was diluted in 5 liters of
water and sprayed to the poultry house. These
were all in accordance with the plan.

23. Procurement of Supplies and
Veterinary Medicines
In the cycle, table 3 shows the
procurement of supplies and veterinary
medicines. Farm supplies were procured
from Guinobatan Public Market. Office
supplies were procured from the Guinobatan
Commercial Center. Veterinary medicines
were procured from the Dan-ke Trading
supplies, Guinobatan, Albay. These were
accordance with the plan.

24. Table 3. Planned andActual Cost of Supplies and Veterinary Medicines
Plan Actual
Items QTY Unit Cost (₱) Amount (₱) QTY Unit Cost
(₱)
Amount (₱)
Farm Supplies
 Rice Hull
 Newspaper
 Bulb 50-watts
 Powdered Soap
 Chlorine
 Benzalkonium Chloride
3 sacks
2 kg
2pcs
1 pack
1 sachet
1 bottle
10.00
20.00
35.00
5.00
1.00
5.00
30.00
40.00
70.00
5.00
1.00
5.00
3 sacks
2.25 kg
2pcs
1 pack
1 sachet
1 bottle
10.00
30.00
70.00
5.00
1.00
6.00
30.00
67.00
140.00
5.00
1.00
6.00
Total 151.00 249.00
Office Supplies
 Record Book
 Journal Sheet
 Ledger Sheet
15 sheets
10 sheets
0.75
1.00
11.25
10.00
1pc.
15 sheets
15 sheets
10.00
1.00
1.00
10.00
15.00
15.00
Total 21.25 40.00
Veterinary Medicines
 Electrolytes
 Doxycycline
 Vetracin Gold
 Chlortetracycline (CTC)
1 pack
14 packs
2 packs
½ kl
20.00
13.00
23.00
300.00
20.00
182.00
46.00
150.00
1 pack
22 packs
2 packs
¾ kls
20.00
21.00
13.00
300.00
20.00
468.00
26.00
200.00
Total 398.00 714.00

25. Procurement of Feeds
The brand of feeds procured was B-
Meg Integra which was the brand of feeds
indicated in the plan. Feeds were procured
in sack and kilogram basis, as planned. The
feeds were procured from Dan-ke Trading in
Guinobatan, Albay as planned. Table 4
shows the Planned and Actual Feeds
procured.

26. Table 4. Planned andActual Cost of Feeds
Items Plan Actual
QTY Unit Cost(₱) Amount(₱)
QTY Unit Cost(₱) Amount(₱)
B-Meg Integra 1000
Sub-total
B-Meg Integra 2000
Sub-total
TOTAL
1 sack 1391.00/sack 1391.00
35kgs 31.50/kg 1102.50
85kgs 2493.50
3 sacks 1391.00/sack 4083.00
23kgs 30.50/kg 701.50
173kgs 4784.50
258kgs 7278.00
1 sack 1391.00/sack 1,391.00
35kgs 30.50/kg 1020.00
85kgs 2,411.00
4 sacks 1361.00/sack 5,444.00
25kgs 31.50/kg 690.00
225kgs 6,134.00
310kgs 8,545.00

27. Table 5. Planned andActual Cost of Stocks
Items Plan Actual
Strain Hubbard Hubbard
Quantity Purchased 100 100
Unit Price (₱) 40.00 40.00
Total Cost (₱) 4,000.00 4,000.00
Initial Average Weight 40.00 40.00
Free 1 1
Source of Stocks Paclibar Poultry Farm Paclibar Poultry Farm
Date of Loading January 23,2018 January 23,2018

28. Plate 2. Newly Procured Stocks

29. Brooding
Brooding was done for two weeks. It is a process of
providing heat to the plate chicks to maintain their body
temperature. The entrepreneur used two pieces of 50 watt
bulbs since the requirement was one watt per bird. This
was done on the 1st day to the 14th day of rearing to provide
the heat needed by the chicks. The lights were adjusted
either upward or downward depending on the behavior of
the chicks inside the poultry house, if they were close
together, the light was lowered, if they were scattered, the
light was adjusted upward or maybe switched off. Putting of
tarp around the area occupied in the poultry house during
brooding was done to keep the heat supplied by the electric
bulbs intact. Proper brooding was practiced because cold
weather and mild respiratory disease would result to
mortality of stocks. The project used rice hull and
newspapers as matting. Plate 3 shows the Chicks in the
Brooding Stage in one cycle.

30. Plate 3: Chicks in
Brooding Stage

31. Plate 2. Brooding of the Chicks

32. Feeding Management
The method of feeding was “Ad
libitum”. The feeds and water are
always available at all times. The
chicks were fed after two (2) hours
up on their arrival.

33. Table 6. Planned and Actual Feed Consumed

34. Water and Veterinary Medicines
Management
• In the cycle, clean water was always provided to the
chicks. The source of water was the water pump in the
poultry house. As plan upon loading, the chicks were
provided with one (1) pack of electrolytes water soluble
dissolved in one (1) gallon of clean water to allow them to
recover from stress due to handling and transport. This
was given in the morning and afternoon. On the 2nd day 2
packs of vetracin gold dissolved in two (2) gallon of water
and 4th up to 14th and 16th and 17th, 23th, 24th, 25th days of
giving ½ teaspoon of CTC for Vitamins. On the 3rd, 15th,
22nd, 24th 25th, 26th twenty-two (22) packs of Doxycycline
was dissolved in 22 gallons of water and given to the
chicks as antibiotics to protect the chicks from mild
respiratory disease. On 18th up to 21st and 28th up to 34th
day plain water was given.

35. Health Maintenance and Sanitation
As planned, chicken manure was
removed every day. It was placed
inside the compost pit near the poultry
house. Regular cleaning of poultry
house was done to prevent the spread
of diseases that may affect the growth
performance of broilers. Dead chicks
were immediately buried.

36. Growth Monitoring
• As planned, growth monitoring was done every week to
determine the growth performance of the chicks. Upon
loading, the entrepreneur got the initial weight of ten (10)
chicks at random which were weighed every week. Table
7 shows the average weight of the chicks which was
recorded every week.
Cycle Initial Weight 1st
week 2nd
week 3rd
week 4th
week
For one cycle 40g 181g 460g 945 g 1570 g
Table 7. Weekly Average Weight of the Chicks

37. As shown in Table 7 and figure 5, raised of stocks showed faster
growth performance in the cycle. It can be observed that the
weekly average weight of the chicks increases every week. There
are 2% mortality in the cycle. Plate 4 show the mortality of 2 chicks

39. Product Disposal and Marketing
• A week before disposal of broilers, the
entrepreneurs took orders from target
buyers for easier marketing. The marketable
broilers were sold on dressed weight basis.
Broilers were disposed on the 34th day of
rearing period of operation. Late disposal
was done because of the late consumption
of feeds and the preference of the time of
delivery of the customer was considered.
Dressing was done for two days on
February 23-24, 2018.

40. Plate 5: Process of dressing the chicken

41. Table 8. PlannedandActual Sales

42. Plate 6: Packaging of the Broiler Products

43. Plate 7: Packaging of the entrails product

44. Table 9: The Planned andActual of the Marketing Expenses
Items Plan Actual
Marketing Expenses
QTY Unit Cost
(₱)
Total Cost
(₱)
QTY Unit Cost
(₱)
Total Cost (₱)
 Plastic Cellophane
 10”x14”
3 packs 10.00 30.00 1pack 75.00 75.00
 Duct tape 1 pc 53.00 53.00
 Ice 55 pc 3.00 165.00
 Rope 4 yard 9.75 39.00
 Chlorine 2 packs 10.00 20.00
Transportation 5 trips
regular
20.00 100.00 1 trip regular 30.00 30.00
1 special trip 120.00
Total: 130.00 502.00

45. Collection of Accounts Receivable
• In selling of broilers in actual operation the entrepreneur
allowed credit sales to facilitate the marketing of the
dressed broilers, entrails and other body parts. Credit
term was offered to credit worthy customers, payable
within 1 week. It was fully collected within 1 week from the
date the credit sales were granted. The credit term of
additional 1.00 per 100.00 credit amount per day which
will be charged to customers who failed to pay within 1-
week time was made clear to them. There was no
customer who failed to pay within 1 week since strict
collection of the accounts receivables was observed by
the entrepreneurs. The total amount receivables were
₱13,253.75.

46. Utilities
The project site has sufficient supply of
water and electricity which was included
in the poultry house rental. The public
transportation was used in transporting
the needed inputs from the source to the
project site. As planned, the public
transportation was used in transporting
the needed inputs from the source to the
project site. Table 10 shows the Plan and
Actual Cost of Transportation.

47. Table 10. Planned andActual Cost of Transportation
ITEMS PLAN ACTUAL
Cost Per
Trip(₱)
No. of Trip Total Cost
(₱)
Cost Per
Trip(₱)
No. of trips Total Cost
(₱)
Procurement of Supplies
Veterinary medicines and 1 sack
and kilograms of B-Meg Integra
10.00 4 trips 40.00 30.00 2 60.00
Procurement of Feeds
B-Meg Integra 2,000 10.00 2 trips 20.00 30.00 3 90.00
Total 60.00 150.00
In the first cycle, the total cost of transportation expenses was ₱150.00 which
included the procurement of feeds amounting to ₱90.00 and procurement of
supplies and veterinary drugs amounting to ₱60.00 for a total of ₱150.00
which were higher than the plan due to higher cost of transporting feeds due to
hiring of tricycle which was out of line.

48. Preparing the Financial Statements
• Financial statement prepared include income
statement which shows the profitability of the
business, cash flow statement shows the
sustainability of the business and the balance
sheet that shows the liquidity, stability and
worthiness of the business.
Income Statements. This is the summary of
revenues and expenses of business operation and
reveals the income generated. Table 11 shows the
Planned and Actual Income Statements of the
enterprise.

49. ITEMS PLAN ACTUAL
FIRST CYCLE
(₱)
FIRST CYCLE
(₱)
SALES
Sales-Broiler
Sales-Entrails
TOTAL SALES
LESS:COST OF PRODUCTION
Expense-Stocks
Expense-Feeds
Expense-Veterinary Medicines
Expense-Farm Supplies
Expense-Transportation
Expense- Labor
Expense-Rent
TOTAL COST OF PRODUCTION
GROSS PROFIT ON SALES
LESS: OPERATING EXPENSE
Expense-Office Supplies
Management Fee
Expense-Marketing
TOTAL OPERATING EXPENSE
NET INCOME
18,525.00
990.00
19,515.00
4,000.00
7,278.00
398.00
150.00
60.00
1795.00
800.00
14,229.00
5,286.00
21.25
500.00
130.00
651.25
4,634.75
18,874.5
1,406.75
20,281.25
4,000.00
8,545.00
714.00
249.00
150.00
1778.00
800.00
16,236.00
4,045.25
40.00
500.00
502.00
1,042.00
3,003.25
Table 11 . PETMALU’s BROILER ENTERPRISE
Planned and Actual Income Statements
For the period of December 11, 2017 –March 3, 2018 (First Cycle)

50. • Cash Flow Statements. The planned and
actual cash flow statement is shown in
Table 12. This statement presents the cash
generated and used that determine the
sustainability of the enterprise.

51. ITEMS
PLAN ACTUAL
FIRST
CYCLE
(₱)
FIRST
CYCLE
(₱)
CASH INFLOW
PETMALU’s Capital
Sales-Broiler
Sales-Entrails
TOTAL CASH INFLOW
CASH OUTFLOW
Expense-Stocks
Expense-Feeds
Expense-Veterinary Medicines
Expense- Farm Supplies
Expense-Office Supplies
Expense-Transportation
Expense- Labor
Expense-Rent
Management Fee
Expense-Marketing
TOTAL CASH OUTFLOW
NET CASH INFLOW
ADD: BEG: CASH BALANCE
ENDING CASH BALANCE
12,153.25
18,525.00
990.00
31,668.25
4,000.00
7,278.00
398.00
150.00
21.25
60.00
1795.00
800.00
500.00
130.00
14,880.25
16,788.00
0.00
16,788.00
15,000.00
18,874.50
1406.75
35,281.25
4,000.00
8,545.00
714.00
249.00
40.00
150.00
1778.00
800.00
500.00
502.00
17,278.00
18,003.25
0.00
18,003.25
Table 12. PETMALU’s BROILER ENTERPRISE
Planned and Actual Cash Flow Statement
For the Period of December 11, 2017 –March 3, 2018 (First Cycle)

52. •Balance Sheet. This is a
snapshot of a business financial
condition. Table 13 shows the
planned and actual balance
sheet of the enterprise.

53. ITEMS
PLAN ACTUAL
FIRST
CYCLE
(₱)
FIRST
CYCLE
(₱)
ASSETS
Current Assets
Cash
TOTAL ASSETS
LIABILITIES AND OWNER’S EQUITY
LIABILITIES
OWNER’S EQUITY
PETMALU’s Capital
Retained Income, Beginning
Add: Net Income for the period
Retained Income, End
TOTAL OWNER’S EQUITY
TOTAL LIABILITIES AND OWNER’S
EQUITY
16,788.00
16,788.00
0.00
12,185.25
0.00
4,602.75
4,602.75
16,788.00
16,788.00
18,003.25
18,003.25
0.00
15,000.00
0.00
3003.25
3003.25
18,003.25
18,003.25
Table 13. PETMALU’s BROILER ENTERPRISE
Planned and Actual Balance Sheet
As of December 11, 2017 –March 3, 2018 (First Cycle)

54. Financial Analysis
Financial analysis evaluates the financial
performance of the business operation using the
profitability ratios, determines the volume and price where
the enterprise generates profit.
Profitability Analysis. Profitability ratios are used to
determine the profitability of the business. The Return on
Investment (ROI), Return on Equity (ROE), Gross Profit
Margin (GPM) and Net Profit Margin (NPM) were employed
to determine the profitability of the business. Table 14
shows the comparative values of profitability ratios while
table 15 contains the detailed computation and
interpretations of profitability ratios.

55. Table 14. Values of Profitability Ratios
RATIOS
PLAN ACTUAL
FIRST CYCLE
(%)
FIRSR CYCLE
(%)
Return On Investment (ROI)
Return On Equity (ROE)
Gross Profit Margin (GPM)
Net Profit Margin (NPM)
35.03%
35.03%
25.07%
22.36%
20.02%
20.02%
19.94%
14.80%
The Return on Investment (ROI) was 20.02% in one cycle. The ROI in one
cycle was lower than the plan due to the lower net income and higher
investment. The generated net income was lower than the plan due to
lower total sales and higher cost of production. The total cost of production
was higher because of higher cost of stocks, veterinary medicines, labour
and transportation. The higher cost of production resulted to higher
investment.

56. Table 15. Computations and Interpretations of Profitability Ratios

57. PETMALU’S BROILER CHICKEN

58. Problems Encountered Action Taken
1. The schedule of disposal of broiler
chicken.
Proper time management
2. Rush on delivery of the chicks. Properly coordination with the supplier.
3. Some of the chicks suffered from
respiratory disease.
Giving doxycycline for anti-biotic and
giving CTC for Vitamins
4. Hard for the entrepreneur to sell some
entrails such as intestine because of the
low quality of the product.
5. Higher cost of production
Sell it with low price
Increase the capital investment

59. Lessons learned
• In terms of disposal, it is advisable if you are going to dispose the chickens early in
the morning, (starting at 2:00 am) because the quality is still in an ideal state and it’s
still fresh.
• Assigning of task for every members is very important to avoid conflict between the
members of the group.
• Cooperation is the key for the business to generate sustainable profit. Immediate
solutions to identify problems will minimize business risks.
• Before disposal, it is advisable to find the buyers first.
• Minimize the use of money to avoid higher cost of production.
• Allocate only the sufficient amount of feeds needed by the chicks to avoid wastage.

60. Thank you !