ESTABLISHING A POULTRY BUSINESS AS AN INCOME GENERATING

PROJECT IN EASTERN SAMAR STATE UNIVERSITY: A FEASIBILITY

STUDY

Presented to the Faculty and Staff of the

COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTACY

EASTERN SAMAR STATE UNIVERSITY

BORONGAN CITY, EASTERN SAMAR

In Partial Fulfillment of the Requirements for the Degree of

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

MAJOR IN FINANCIAL MANAGEMENT

TEQUIR, AIVIE L.
MONTES, GENOSAN G.
CARDONA, PAULO V.
CALZITA, REGIE A.

2024
 CHAPTER I. BACKGROUND OF THE PROJECT

A. Introduction

Raising poultry for domestic use is very common. ESSU Poultry Farm seeks to

employ locals in the City of Borongan and surrounding municipalities while addressing

the increase in demand for protein products brought on by the area's fast population

growth.

In Borongan City, poultry industry has been part of farming enterprises and play an

important role in local economy. It continues to make positive contributions to the

economy as smallholder poultry production can play an important role in maximizing the

benefits and improvements to local supply. Production of poultry products, particular,

eggs has growing demand, it has a large and ready market, so this sector has become

increasingly significant for both small-scale farmers and larger enterprises.

According to the Philippine Statistics Authority, in Region VIII, in the last three years

from 2016 to 2018, chicken egg production has a decline of 0.89 percent and in 2023,

the volume of chicken egg production was recorded an annual decline of -2.1 percent

from the previous years. This means that despite the increasing demand for poultry

products, there is a lack of consistent supply, particularly in fresh eggs and meat, leading

to shortages in local markets. In addition, many small-scale farmers struggle with

insufficient access to resources and training which affects productivity and product

quality. Addressing these gaps presents an opportunity for growth in the industry,

enhancing food security and boosting the local economy while meeting the community

needs more effective.

This proposed poultry project from Income Generating Project Office is good idea to

enrich the supply of local eggs. The Feasibility Study is primarily focused on poultry

production, specifically eggs as income generating project for the University. The study

aims to provide knowledge and information on the feasibility of reoperation of the poultry

business in Eastern Samar State University as it will serve the demand for poultry eggs.

B. Company’s Historical Background (Project Proponents)

This income-generating project will be a university’s entity as this study is

recommended by the Income Generating Project Office. Eastern Samar State University

will play a crucial role in putting up capital like reconstructing the poultry house and
infrastructure and creating a sustainable and profitable poultry business as income

generating project for the University.

C. Proposed name of the Business

The name of the business is “ESSU Poultry Farm", reflecting its connection to

Eastern Samar State University (ESSU) and its goal of generating income for the

institution and providing excellent and premium quality egg products to the community.

D. Location of the Business

The proposed business will be located inside the property of Eastern Samar

State University at ESSU Compound, Brgy. Maypangdan, Eastern Samar. The location

of the poultry business is suitable for a poultry farm because it is away from residential

and industrial areas and the location has a proper road facility that transportation, power,

and water are all easily accessible at the poultry farm.

Plate 1. Location of the Business

E. Legal Structure and Form of Ownership

This study is recommended by the Income Generating Project Office of Eastern

Samar State University, therefore proposed business will become a university’s entity to

generate income for the school.

F. Mission/Vision Statement

MISSION

By 2030, ESSU Poultry Farm will offer egg products and expand the business

not just to supply in Borongan City but also in its nearby municipalities. We will launch
and maintain a good revenue-generating that produce affordable, fresh poultry eggs that

might help the university and the community's economy.

VISION

ESSU Poultry Farm promote sustainable environment and poultry farming at the

University, ensuring quality eggs and student involvement while maximizing productivity.

G. Goal and Objectives

The purpose of this proposed project is to determine the feasibility of establishing a

poultry business as an income generating project for the University.

In order to determine the feasibility of the business, this study specifically will:

1. Determine the Economic/Market Aspect based on:

1.1 Demand and Supply Analysis

1.2 Market Analysis

1.3 Marketing Strategies

2. Identify the Human Resource Management and Legal Study based on:

2.1 Organizational Structure

2.2 Functions and Responsibilities

2.3 Compensation

2.4 Benefits

2.5 Administrative Personnel

2.6 Management Style

2.7 Training Program

2.8 Legal Compliance of the Business

3. Identify the Technical and Environmental Study

3.1 Product and Services

3.2 Project Site/Layout/Production Schedule

3.3 Building

3.4 Service Flow

3.5 Utilities

3.6 Machinery

3.7 Equipment

3.8 Furniture and Fixtures

3.9 Waste Disposal

 4. Analyze the Financial Requirements based on:

4.1 Major Financial Assumptions

4.2 Proposed Capital Contribution

4.3 Total Project Cost

4.4 Pre-Operating Cash Flow

4.5 Pre-operating Balance Sheet

4.6 Projected Income Statement

4.7 Projected Income Statement

4.8 Projected Balance Sheet

4.9 Projected Statement of Cash Flow

4.10 Statement of Changes in Equity

4.11 Schedule of Profit Distribution

4.12 Schedule of Accumulated Depreciation

4.13 Schedule of Salaries and Wages Distribution

4.14 Consumption Schedules

4.15 Notes to Financial Statement

5. Determine the Social and Economic Aspect

6. To have a business expansion of egg production in Borongan City.

H. Product/Service Description

The business will acquire from a supplier a Ready-to-Lay Chickens. Ready to Lay

Chickens are 18-20 weeks of age production-type females and have laid their first eggs.

The birds are able to easily adapt to life in the laying facility whether it is cage-type,

cage-free or free range. In ESSU Poultry Farm, the laying facility would be cage-

type.The produced egg will be distributed to the consumers of Borongan City including

the wholesalers, retailers, restaurants, bakeries and the households.

 CHAPTER II. SITUATIONAL ANALYSIS

A. Related Literature

1. Economic/Market Aspect

1.1 Demand and Supply Analysis

The interaction between demand and supply, therefore, forms an important

understanding in the poultry industry concerning its economic viability. Rivera (2020)

conducted a thorough study about the chicken industry in the Philippines,

distinguishing between commercial and backyard operations. Analysis concluded

that commercial operations, which are significantly large-scale, meet the rising

demand driven by population growth and rising incomes. Similarly, Lañada et al.

(2000) study of smallholder chicken production systems in Leyte characterized the

problems and prospects of the backyard sector, and it addresses on the health and

productivity of chickens in marginal uplands could be enhanced through targeted

management practices. Important factors that have been linked to low attrition rates

among chickens are caged feeding, feeding them with rice, and treatment of sick

chickens. In addition, the economic gains generated from raising chickens are

significantly enhanced through the revenue from selling chickens for money, the

feeding use of commercial feed, copra-making as an agricultural income-generating

activity, and provision of coconuts on a monthly basis per flock. Its outcomes have

underscored the prospects of targeted interventions meant for optimizing feeding

practices and management strategies to improve the health of poultry and,

consequently boost income for small-scale farmers located in marginal upland

regions. Hafez and Attia (2020) carry out an analysis of the impacts of the COVID-19

pandemic on global poultry demand and supply. This analysis records deep

disruptions and changes that have occurred in this sector.

The COVID-19 pandemic appears to have quite a significant implication on

poultry production in developing countries where this sector is important for

supplying accessible animal protein, providing investment opportunities, and

generating income for small holder farmers. Lockdowns, movement restrictions, and
market closures result in serious consequences for the viability of poultry farming,

mainly in import dependent regions, as it depends on feed and vaccines, amongst

other essential resources. Among the interventions to be undertaken in a

coordinated manner between the private and government sectors is to restore

poultry production and stabilize the supply chain. Access to soft loans, availability of

farm inputs, improved management practices, and veterinary services should fall

within these efforts. This will enable the poultry industry to regain its economic and

social importance and support reduced global poverty levels. Other authors, Antras

and Foley (2011), analyzed international trade finance practices in the poultry sector,

providing insight into global supply chain dynamics.

1.2 Market Analysis

Opportunities and threats in the poultry industry can be identified through

market analysis. The Philippine Poultry Layer Industry Roadmap 2022 reviewed the

structure, performances measures, and future outlook of the poultry layer sector with

an extensive review. These roadmaps gave indication to the competitive landscape

as well as influencing factors of market trends. Rivera (2020) analyzed market forces

in terms of competition between domestic and foreign poultry products. Mottet and

Tempio (2017) looked into trends in world markets and what the future holds with

regards to poultry, including growth in cities and higher levels of income. Meanwhile,

Hafez and Attia (2020) have presented a strategic perspective on the poultry

industry's future, based on the consumer's preferences and health and wellness

concerns. The work of Antras and Foley (2011) related to practices in international

trade finance provides further significant insights into the global market for poultry

products.

1.3 Marketing Strategies

Effective marketing strategies determine the success of poultry enterprises. The

Philippine Institute for Development Studies (2023) stressed the need to uplift

product quality, branding, and distribution channels to enhance competitiveness.

Rivera (2020) recommended that digital marketing and social media be tapped to

reach a broader market and to help increase consumer interface. International

aspects Mottet and Tempio, 2017 considered the role of marketing in overcoming the

challenges both smallholder producers face and large-scale producers go through.

Hafez and Attia, 2020 pointed to the need for strategic marketing as a way of

reviving customer confidence after the pandemic. In addition, Antras and Foley, 2011

conducted a study on the impact of trade finance on poultry marketing strategies.

2. Human Resource Management and Legal Study

2.1 Organizational Structure

An organizational structure is thus critical to a poultry enterprise's goal of

effective production. Lañada et al. (2000) suggested that the role assignments in

smallholder chicken production systems in Leyte should be well defined. Rivera

(2020) insisted, too, that management of poultry production, marketing, and other

administrative functions should be structured.Mottet and Tempio (2017) analyzed the

organizational challenges of poultry producers, especially developing countries.

Hafez and Attia (2020) studied the impact of organizational structure on poultry

business strength against the COVID-19 pandemic. Antras and Foley (2011)

discussed a number of core concerns associated with the organizational practices of

companies dealing in poultry trade from various countries.

2.2 Functions and Responsibilities

There must be well-defined duties and functions for the smooth running of a

poultry venture. According to Rivera (2020), specialized roles in feed management,

health monitoring, and marketing are an essential requirement. Besides, Lañada et

al. (2000) highlighted the importance of task specialization for particular employees

according to their skills and expertise. On a world scale, Mottet and Tempio (2017)

discussed the division of labor under poultry production systems and its implications

on efficiency. Hafez and Attia (2020) discussed the role of the function of employees

in ensuring poultry health and productivity. Antras and Foley (2011) discussed the

roles and responsibilities of different actors in the international poultry trade.

2.3 Compensation and Benefits

Competitive compensation and benefits packages are major requirements in

the poultry industry to attract and retain skilled personnel. The Philippine Poultry

Layer Industry Roadmap (2022) identified compensation and benefits enhancement

strategies for workforce stability. Rivera (2020) suggested fair wage, health

insurance, and promotional opportunities as ways of boosting employee morale.

Mottet and Tempio (2017) discussed globally how compensation affects labor

productivity in poultry production. Hafez and Attia (2020) emphasized the

significance of employee benefits in sustaining workforce resilience during periods of

crisis. Antras and Foley (2011) offered valuable insights regarding compensation

practices within international poultry trade firms.

2.4 Administrative Personnel and Management Style

Effective management styles coupled with effective administrative personnel are

essential to the success of poultry firms. The Philippine Institute for Development

Studies, 2023 reports indicate that a participative management style should be

employed to foster a productive working environment. Rivera, 2020 stipulates that

effective administrative personnel play a critical role in poultry operation

management. At the international level, Mottet and Tempio, 2017 examined the

impact of management styles in addressing the problems that poultry producers

encounter. This study analyzes the impact of management practices on poultry firms'

resilience in the face of the COVID-19 pandemic by Hafez and Attia (2020). Antras

and Foley (2011) also discusses the management type of firms practicing

international poultry trade.

2.5 Training Program and Legal Compliance

Continuous training programs are fundamental towards the needful

conditions to keep employees apprised of a very best practice and regulatory

requirements. Lañada et al. (2000) emphasized the importance of training in the

areas of biosecurity, animal welfare, and environmental management. Similarly,

Rivera (2020) emphasized the importance of training programs for ensuring

compliance with legal standards. At the international level, Mottet and Tempio (2017)

highlighted the role of training in promoting poultry production efficiency. Hafez and

Attia (2020) addressed the impact of training on the maintenance of poultry health

and productivity. Antras and Foley (2011) provided great insight regarding training

practices from international companies dealing with poultry trade.

The poultry farming regulatory framework of the Philippines involves multiple

areas, including animal health, food safety, and biosecurity. Examples of policies set

by the government of the Philippines aim to improve the productivity and

sustainability of the poultry sector. For instance, in poultry production, the HACCP

system is integrated as part of a logical step for food safety and quality assurance

(Chon et al., 2021). Even though initially it had more prevalence in the dairy, with

times now more and more in poultry farming, due to the encouragement of

government schemes that promise financial incentives as compensations for

compliance by farmers (Läpple, 2015). Moreover, research findings show that non-

implementation of veterinary medicinal products compliance regulations is one of the

massive barriers related to biosecurity and animal health, Philippines (Barroga et al.,

2020).

In Region VIII, LGUs have implemented already such programs meant to

train and provide resources for small-scale poultry producers. Based on Palada's

study (2020), his study evaluates the effectiveness of training to farmers' knowledge

regarding commercial poultry and table egg production. Two sets of training, the

same resource team, one hundred farmers participated, Oras and San Policarpo,

Eastern Samar. These trainings were attended for two days; they cover all the

essential topics: construction of the poultry house, production management, feeding

practice, health and sanitation, environmental factors, record-keeping, and

marketing. The knowledge levels of farmers were appraised by doing pretests and

posttests on them, which were implemented immediately before and after training.

The findings showed that the knowledge of farmers significantly increased following

the training. Sex, age, and education did not influence the knowledge gain. These

confirm that the training actually boosted the knowledge of farmers concerning

commercial poultry and table egg production.

Verdida et al., (2020) discussed the Yolanda Rehabilitation and

Reconstruction Program initiated by the Department of Agriculture in Region VIII,

Philippines. It aimed to identify differences by gender in coping mechanisms among

farming beneficiaries of Super Typhoon Yolanda. It analyzed the socio-demographic

and farm characteristics of YRRP beneficiaries, explored disparities in coping

strategies between men and women, and evaluated the farmers' perceived current

conditions. Verdida's research showed that income, education, relationship status,

and farm ownership were highly influential factors in the recovery of farmers.

Although male and female farmers each organized after the typhoon, both groups
stated that there was a need for supplementary financial assistance for farm inputs.

The research basis suggests a continuation of farmers' associations as an essential

strategy for reducing vulnerability in the face of future disasters. These programs

relate to expanding farmers' access to modern agricultural techniques and

resources, thus indirectly enhancing productivity. The administration of the

Philippines encourages organic fertilizers from poultry waste. This promotes

sustainability but is also compliant with laws and environmental regulations. Such

policies should be incorporated into such initiatives as ESSU Eggcellent Poultry,

which must comply with industry standards just to penetrate markets and continue to

remain confident with consumer demand.

3. Technical and Environmental Study

3.1 Product and Services

Services in poultry businesses can play a crucial role in its market position. It

may expand its product lines and scope according to the changing demands of the

consumers, as said by Rivera (2020). Lañada et al. (2000) discussed the fact that

diversification of product lines is essential for small-scale chicken production

systems. According to Mottet and Tempio (2017), innovation in poultry products is

essential for the global market. The authors in Hafez and Attia (2020) sought to

understand the impact of product diversification in poultry businesses regarding

building resilience during the COVID-19 pandemic. Antras and Foley (2011) shared

information on product diversity in international firms trading in poultry.

3.2 Project Site/Layout/Production Schedule

Proper selection of the right project site and design of an appropriate layout

are of great importance to achieve productive process optimization. A site selection

and design of a layout to improve production efficiency in poultry layer industry was

learned through the Philippine Poultry Layer Industry Roadmap by (2022). Lañada et

al. (2000) said that one important consideration in choosing the site would be the

proximity to markets and utilities. Gobally, Mottet and Tempio (2017) write on the

impact of site selection on poultry production efficiency. Hafez and Attia (2020)

discuss application of poultry site layout for overall health and productivity in poultry.

Antras and Foley (2011) discussed their understanding on international practices

concerning site selection in poultry trading firms. Reforms in the industry establish

sustainable poultry farming methods as highly essential in achieving long-term

profitability and stewardship over the environment. Eco-friendly housing, effective

waste management, and resource conservation techniques are thus being integrated

worldwide to make poultry operations more sustainable (Brewer & Goodell, 2012).

3.3 Building, Service Flow, and Utilities

The designing and constructing poultry house should be a concern with

biosecurity, animal welfare, and operational efficiency. Lañada et al. (2000) asserted

that highly designed buildings equipped with proper ventilation, lighting, and systems

for waste management help in improving productivity. Rivera (2020) also

emphasized the necessity of a good design of buildings in poultry health. Mottet and

Tempio (2017) elaborated on the building design to address the problems

concerning the challenges poultry producers face globally. The impact of building

design on the resilience of poultry companies during the COVID-19 pandemic was

studied by Hafez and Attia in 2020. Antras and Foley, in 2011, discussed

international poultry trade firms and building design practices.

Recent technologies in poultry farming have greatly transformed the production of

most poultry farms, where the results are more productivity and profitability. Several

technologies, which include automated feeding systems and climate-controlled

housing have recently been discovered to optimise feed efficiency while maximizing

poultry health (Sarnino et al., 2022). Such technologies not only save labor but

ensure birds are always receiving a constant supply of nutrition to increase the yield

of eggs (Belotindos et al., 2021).

3.6 Machinery, Equipment, and Furniture

Investing in modern machinery and equipment would enhance production

efficiency as well as the quality of the products. According to Philippine Poultry Layer

Industry Roadmap (2022), high and advanced technologies shall be used to be

market-compliant. Lañada et al. (2000) highlighted that modern equipment

contributed to better smallholder chicken production systems globally. Mottet and

Tempio (2017) also emphasized the use of technology in increasing the efficiency of
poultry production globally. Hafez and Attia, in 2020, highlighted that some of the

equipment and machinery have been influencing the poultry sector, especially in the

situation of COVID-19 pandemics. According to Antras and Foley, equipment

practices by international poultry trade firms were explained in 2011.Renewable

sources of energy in heating and cooling poultry houses minimize the costs of

running operations and avoid environmental impacts from farming (Huse et al.,

2023). For example, poultry litter can be taken as organic fertilizers for soil health

and reduce pollution by adopting waste management systems (Bhunia et al., 2021).

In the Philippines, domestic research indicated the urgent need to incorporate

sustainable practices in poultry farming to counter the issues with climate change

and resource scarcity in more ways than one (Soliven, 2024). The ESSU Poultry

project could be the prototype in pushing for best practices among local farmers. The

project would help educate and empower farmers through sustainable practices in

farming and facilitating their access to ecological resources so as not to impact

productivity but also directly impact sustainability within the environment.

Another would be that best practices in poultry farming could result in better

animal welfare, a very important issue for many consumers (Higham et al., 2018).

Keeping poultry in humane conditions supports not only ethical reasoning but also

quality product due to healthier birds producing better-quality eggs. Being positioned

on the edge of sustainability and animal welfare, the ESSU Poultry project can place

itself at the lead of the poultry chain attraction, whereby the consumer puts the

priority forward.

3.7 Waste Disposal

Proper waste disposal reduces environmental impacts and also ensures that

there is an aspect of regulatory compliance. According to Lañada et al. (2000),

sustaining wastemanagement programs is necessary in smallholder chicken

production systems to avoid pollution and enhance more income-generating

activities such as composting and biogas production. According to Rivera, 2020,

there should be adoption of environmentally friendly ways of waste disposal to

enhance environmental sustainability within commercial poultry enterprises. At the

international level, Mottet and Tempio in 2017 addressed issues related to

environmental impacts of wastes from poultry and incorporation of sustainable

practices to mitigate such impacts. Hafez and Attia in 2020 perceived waste

management as the basis of maintaining poultry biosecurity and therefore, avoiding

potential outbreaks. Antras and Foley in 2011 provided best practice from around the

world on the disposal of waste at poultry units and emphasized the need for

compliance with environmental legislation. In addition, data-based health monitoring

systems allow farmers to monitor the status of their flocks in real-time, thus allowing

for timely interventions that could prevent outbreaks of diseases and improve overall

flock performance (Caudell et al., 2020).

Furthermore, diseases, largely gastrointestinal parasites, are a significant

threat to the region's poultry production levels (Ybañez et al., 2018). In addition to

their connection to the quality of eggs produced, higher disease incidences will also

impact the quantity due to diseased birds laying fewer or lower quality eggs. ESSU

Poultry targets the farmers at a local level with training and resource material to build

their capacity in managing health risks and improving production outcomes. It can

help mitigate the impact of diseases on small-scale operations through education

and access to veterinary care.

4. Financial Requirements

4.1 Major Financial Assumptions and Proposed Capital Contribution

Therefore, the feasibility of a poultry business would be determined by the

accuracy of financial assumptions and capital contribution. Actual realistic financial

projections based on market trends and cost analyses can help secure funding and

guide investment decisions, which is based on the same study. The Philippine

Poultry Layer Industry Roadmap, 2022 sheds light on the financial planning and

capital requirements for the poultry business. According to Rivera, 2020, detailed

financial planning has to be made for cash flow during the start-up. Mottet and

Tempio, 2017, discussed the global poultry industry financial challenges and

strategies in the same context. Hafez and Attia, 2020, analyzed the resilience of the

poultry business toward economic downturn through financial planning. Antras and

Foley (2011) looked into international financial practices in the poultry sector, which

described trade finance as critical.

4.2 Total Project Cost and Pre-Operating Cash Flow

 Estimating total project cost and pre-operating cash flow is the most

important step in planning for a venture. As rightly mentioned, detailed cost analyses,

as provided by construction cost, equipment cost, and initial operating costs, are

essential determinants of whether the project is feasible or not. Lañada et al. (2000)

opined that proper financial planning should be ascertained whereby ample cash

flow during the establishment phase is realized. Accurate cost estimation has also

attracted much attention for averting financial shortcomings, highlighted by Rivera in

2020. Mottet and Tempio (2017) discussed the best financial planning practices from

successful poultry producers globally. Hafez and Attia (2020) took time to explore the

role of financial planning in maintaining business continuity in a crisis. Insight into

cost management practices in international poultry trade firms has been provided by

Antras and Foley (2011).

4.3 Projected Financial Statements

Projected Financial Statements — This is the exact way to go about

evaluating a poultry bussines by preparing projected financial statements, including

income statement; balance sheet and cash flow terms. These are valuable

information that directly provide insight into the profits, ability to meet short-term

obligations and financial resources available with an entity.

The Philippine Poultry Layer Industry Roadmap (2022) provides

recommendations regarding financial reporting and analysis. Making sure your

financial projections were going to be accurate, you could likely attract investors and

actually get the funding (Rivera 2020). On a global scale, Mottet and Tempio (2017)

also shared how financial statements can aid in strategic planning on poultry

businesses. Hafez and Attia (2020) examined how financial reporting contribute to

the resilience of a business during economic crises. Financial Reporting Practices:

International Poultry Trade Firms Antras, Pol and Stephen R.

5. Social and Economic Aspect

Beyond profitability, starting a poultry business has wide social and economic

implications. Studies have reported multiple ways in which poultry enterprises can

help develop the local economy at varying levels by way of giving employment

opportunity, yielding input to the community/sub-sector and making inexpensive high

quality protein available locally. Furthermore, Rivera (2020) showed the possibility of

poultry businesses in providing food security and livelihoods for those living in rural

areas. Lañada et al. Several years ago, several news reports trumpeted the socio-

economic advantage of smallholder chicken production systems in Leyte which is

now labeled as the "Chicken grow rich program" that aimed to alleviate poverty

(2000). At the global level, Mottet and Tempio (2017) documented on how poultry

contributes to social-economic development in rural areas. Hafez and Attia (2020)

explored how poultry businesses could help to build community resilience in the case

of crises. Antras and Foley (2011) showed us how international poultry trade affect

socio-economic.

6. Business Expansion of Egg Production in Borongan City

The expansion of Borongan City’s egg production creates new opportunities

for growth and increasing their market share. Research has demonstrated that

scaling up production will meet growing demand and drive economies of scale. The

Philippine Poultry Layer Industry Roadmap noted on various methods and strategies

to turn businesses into large-scale production and how new frontiers in the market

may be reached. Rivera also found that strategic planning is essential to business

expansion to foster sustainable growth. Mottet and Tempio discussed the most

challenging of global poultry production to demonstrate expansion opportunities and

hurdles. Hafez and Attia researched how post-expansion business remains efficient

and competitive. Antras and Foley identified the optimal practices in the field.

3. Competition

Direct competitors of the business will be the small-scale and large-scale local

industry. Small-scale and large-scale poultry farms that produce eggs and offer

locally sourced eggs for direct sale to the local consumers, retailers, and wholesalers

in Borongan City.

4. Target Market (Customer Profile)

Borongan City has a high percentage of egg consumption in every household as

well as business establishments that uses egg in their products. The City consists of

61 Barangays and as of October 2024, the total number of households is 21,605.

 This income generating project targets to supply business establishments such as

retailers, wholesalers, restaurants, bakeries and also target to supply households in

Borongan City.

5. Geographical Area

Poultry will be located in ESSU Compound, Brgy. Maypangdan, Borongan

City. The location has an existing infrastructure, but it will need a reconstruction. The

location of the business is an ideal location for a poultry business as it is far from the

residential area.

Plate 2. Geographical Area of ESSU Poultry Farm

6. SWOT Analysis

Strengths Weakness

 The product is already known in the  High production cost like feeds

industry. expenses.

 Fair/affordable price of the products.  Small-sized farm

 Easily accessible to the market

 High chance of probability

 Skilled and experienced employees

 Government support and extension

Opportunities Threats

 High Demand for eggs  Competitors are being seen

 Can gain many customers through everywhere.

 online advertisements.  Environmental regulations

 Growing market demand due to  Increasing cost of transportation,

population growth. feeds, vitamins, antibiotics and etc.

 Expansion potential includes the  Presence of predators

possibility of targeting new markets.

 Job creation by providing

employments.

Table 1. SWOT Analysis of ESSU Poultry Farm

CHAPTER III: ECONOMIC/MARKET STUDY

A. Demand and Supply Analysis

1. Historical Demand

From the latest census, Borongan City comprising 21,605 households based on

October 2024 Borongan City Population Office within geographic area that

encompasses Borongan City. The researchers use the Slovin’s formula from the 2024

data, included 393 household respondents of this study.

From the survey, the 393 respondents have total egg purchased of 7,662 pieces

of eggs in a week, 367,776 eggs in a year. The historical demand, derive from the

Average Annual Consumption per household and multiply it to the total population in

Borongan City. The result revealed that, each household purchase 936 eggs annually.

Table 2. Historical Demand for eggs in the years 2015-2023

Year Total Households Historical Demand

2020 17,493 16,373,448

2021 17,948 16,799,328

2022 18,402 17,224,272

2023 18,457 17,275,752

2024 21,605 20,222,280

Source: Survey Results

2. Projected Demand

The projected demand is a forecast of demand based on the data coming from

the historical demand. The researchers used the Arithmetic Straight-Line Method and

came up the with the following details.

Table 3. Projected Demand for Egg from 2025-2029
Year Annual Demand for Egg (pieces)

2025 20,222,280+962,208=21,184,488

2026 21,184,488+ 962,208=22,146,696

2027 22,146,696+962,208=23,108,904

2028 23,108,904+962,208=24,071,112

2029 24,071,112+962,208=25,033,320

Source: Survey Results

3. Historical Supply

Year Supply for Egg in pieces

2020 6,620,000

2021 6,706,400

2022 7,419,400

2023 7,646,400

2024 7,862,000

The historical supply of eggs was based on the historical actual supplied and

sustained by different poultry farms in Borongan City. The table below shows the total

eggs supplied by the suppliers from year 2020-2024.

Table 4. Historical Supply of Egg in the Years 2020-2024.

Source: Survey Results

4. Projected Supply

The projected supply is a forecast of supply based on the data coming from the

historical supply and survey from the poultry farm owners in Borongan City. Using the

Arithmetic Straight-Line Method, there will be 310,500 eggs increase per year. The

Projected Supply from 2025-2029 presented below:

Year Annual Supply of Egg (Pieces)

2025 7,862,000+310,500=8,172,500

2026 8,172,500+310,500=8,483,000

2027 8,483,000+310,500=8,793,500

2028 8,793,500+310,500=9,104,000

2029 9,104,000+310,500=9,414,500

Table 5. Projected Supply for Eggs from 2025-2029

5. Market Share

Table 6. Market Share of ESSU Poultry Farm

Year Projected Projected Demand- Unfilled Actual Capacity Market

Demand Supply Supply Demand Demand to Share
Gap of Willing Supply from
Unfilled
Demand

2025 21,184,48 8,172,500 13,011,988 61% 12,231,269 388,800 3.18%

2026 22,146,69 8,483,000 13,663,696 62% 12,843,874 550,800 4.29%

2027 23,108,90 8,793,500 14,315,404 62% 13,456,480 648,000 4.82%

2028 24,071,11 9,104,000 14,967,112 62% 14,069,085 972,000 6.91%

2029 25,033,32 9,414,500 15,618,820 62% 14,681,691 972,000 6.91%

5. Project Demand and Supply Gap Analysis

Table 7. Demand-Supply Gap Analysis for the years 2025-2029

Year Demand for Supply Gap Unserved

Egg (Pieces) (Pieces) Market

2025 21,184,488 8,172,500 13,011,988 61%

2026 22,146,696 8,483,000 13,663,696 62%

2027 23,108,904 8,793,500 14,315,404 62%

2028 24,071,112 9,104,000 14,967,112 62%

2029 25,033,320 9,414,500 15,618,820 62%

B. Market Analysis

1. Demographic Profile of the Respondents in terms of: Age, Role in the Family

and Monthly Family Income/ Economic Status

Table 8. Age Profile of the Respondents

Age Profile Frequency Percentage (%)

35 years old-above 229 58.27%

30-34 years old 88 22.39%

24-29 years old 41 10.43%

19-23 years old 28 7.13%

18 years old below 7 1.78%

Total 393 100%

Results of the survey revealed that out of 393 household-respondents, two

hundred twenty-nine (229) or 58.27 percent were 35 years old and above, eighty-eight

(88) or 22.39 percent aged 30-34 years old, forty-one (41) or 10.43 percent were 24-29

years old, twenty-eight (28) or 7.13 percent aged 19-23 years old, and seven (7) or 1.78

percent aged 18 years and below.

Role in the Family Frequency Percentage (%)

 Father 62 15.78%

Mother 249 63.36%

Son 37 9. 41%

Daughter 45 11.45%

Total 393 100%

Table 9. Role in the Family

Furthermore, sixty-two (62) or 15.78 percent were fathers, two hundred forty-nine

(249) or 63.36% were mothers, thirty-seven or 9.41 percent were son, forty-five or 11.45

percent were daughters of the family.

Table 10. Family Monthly Status

Family Monthly Status Frequency Percentage (%)

Above Php. 20,000 34 8.65%

Php. 15,001- 19,999 86 21.88%

Php. 10,001- 15,000 186 47.32%

Php. 5001- 10,000 49 12.47%

Php. 5,000 below 38 9.67%

Total 393 100%

The Monthly Income of household-respondents revealed that thirty-four (34) or

8.65 percent earning above ₱ 20,000.00, eighty-six (86) or 21.88 percent earning ₱

15,001-19,999, one hundred eighty-six (186) or 47.32% earning ₱ 10,000-15,000, forty-

nine (49) or 12.47 percent earning ₱ 5001-9,999 and thirty-eight (38) or 9.67 percent

earning ₱ 5,000 below. This implies that the majority of the household respondents

belong to mostly mothers, with average monthly income of ₱ 10,000-15,000.

2. Consumption Behavior

Table 11. Respondents’ Source of Eggs

Family Supermarke Sari-Sari Wholesalers Distributors Public Frequency

Monthly t Store/Retailers Market
Status
 Above Php. 3 7 3 0 21 34
20,000
Php. 3 76 4 0 3 86
15,001-
19,999
Php. 1 157 7 0 21 186
10,001-
15,000
Php. 5001- 0 41 0 0 8 49
10,000
Php. 5,000 0 38 0 0 0 38
below
Total 7 319 14 0 53 393

Results of the survey revealed that most of the household-respondents earning

Php. 20,000 above buy their eggs in the public market. Respondents earning Php.

15,001-19,999, Php. 10,001-15,000, Php. 5,001-10,000, and Php. 5,000 below mostly

buy their eggs in Sari-Sari Stores/Retailers.

Table 12. Respondents’ Kind of Eggs Purchased

Family Monthly White Eggs Brown Eggs Frequency

Status
Above Php. 20,000 34 0 34

Php. 15,001- 19,999 86 0 86

Php. 10,001- 15,000 186 0 186

Php. 5001- 10,000 49 0 49

Php. 5,000 below 38 0 38

Total 393 0 393

Results from the survey revealed that 393/393 respondents earning Above Php.

20,000, Php. 15,001-19,999, Php. 10,001-15,000, Php. 5,001-10,000, and Php. 5,000

below purchased white eggs only.

Table 13. Quantity of Eggs that the Respondents Purchase

Family Monthly By Piece By Dozen By Tray Frequency

Status
Above Php. 7 0 27 34
20,000
Php. 15,001- 10 0 76 86
19,999
Php. 10,001- 157 0 29 186
15,000
Php. 5001- 41 0 8 49
10,000
Php. 5,000 below 38 0 0 38
 Total 253 0 140 393

Results in the survey revealed that seven (7) of the respondents earning Above

Php. 20,000 buy their eggs by piece and twenty-seven (27) buy their eggs by tray.

Respondents earning Php. 15,001-19,999, ten (10) of them buy their eggs by piece and

seventy-six (76) by tray. Respondents earning Php. 5,001-10,000, one hundred fifty-

seven (157) of them buy their eggs by piece and twenty-nine (26) of them by tray.

Respondents earning Php. 5,001-10,000, forty-one (41) of them buy their eggs per piece

and eight (8) buy their eggs by tray and for the respondents earning P5,000 below,

thirty-eight (38) buy their eggs by piece and none of them buy their eggs by tray.

3. Spending Pattern

Table 14. Spending Pattern on Eggs per week

Family 10pcs 11-15 16-20 21-25 26 pcs Frequency Percentage

Monthly below pcs pcs pcs and (%)
Status above
Above Php. 8.00 3.00 10.00 9.00 4.00 34.00 8.65%
20,000
Php 15,001- 29.00 14.00 15.00 23.00 5.00 86.00 21.88%
19,000
Php. 10,001- 23.00 48.00 39.00 63.00 13.00 186.00 47.07%
15,000
Php. 5,001- 3.00 11.00 14.00 2.00 8.00 49.00 12.47%
10,000
Php. 5,000 12.00 8.00 6.00 5.00 7.00 38.00 9.67%
below
Total 69.00 85.00 84.00 103.00 41.00 393.00 100%

Result of the survey revealed that the spending pattern of the household-

respondents were based on their weekly consumption. It showed that the majority of the

respondents with Above Php. 20,000 earnings consume 16-20 eggs weekly and they

have to spend 4.8% of their monthly income, the respondents earning Php. 15,001-

19,000 consume 10 eggs below weekly and have to spend 2.53% of their income, the

respondents with Php. 10,001-15,000 earnings need to spend 8% of their income

because most of them consume 21-25 eggs in a week. Php. 5,001- 10,000 earners need
to spend 9.6% of their income because they consume 16-20 eggs per week, and the

Php. 5,000 below income earners need to spend 9.6% of their income for 10 eggs below

in a week.

C. Marketing Strategies

1. Product Image and Description

Plate 3. Product Image

 The business is centered in the production and distribution of eggs, offering a

fresh and affordable eggs to consumers. With a focus on providing raw eggs and

convenient access to eggs. The business will acquire from a supplier a Ready-to-Lay

Chickens. Ready to Lay Chickens are 18-20 weeks of age production-type females and

have laid their first eggs. The birds are able to easily adapt to life in the laying facility

whether it is cage-type, cage-free or free range. In ESSU Eggcellent Poultry Farm, the

laying facility would be cage-type.The produced egg will be distributed to the consumers

of Borongan City including the wholesalers, retailers, restaurants, bakeries and the

households.

2. Advertising Strategy

In this competitive market, it is very important for a business to have an effective

advertising strategy. Before the starting operation of the business, there will be posting

of tarpaulins about the business. Furthermore, the proponents will generate an owned

Facebook page where online advertising will take place. Online platform is an

opportunity for the business to introduce and advertise the product. Consumers might

also contact the page for inquiries, for orderings and deliveries. Online advertising has a

wider range of customer; thus, this will greatly affect the business.

3. Pricing Strategy

The proposed business will use a Competitive Pricing Strategy, the price may vary

due to some inevitable factors but Competitive Pricing Strategy will focus entirely on the

available information about the competitor’s prices. ESSU Poultry Farm will compare

and consider the selling price of a product or service of its competitors. Upon
considering the price of the competitors, the selling price of the product is presented

below:

Table 15. Average Price per Tray of Eggs

Size Price per tray

Small 220.00

Medium 250.00

Large 270.00

Extra Large 290.00

Jumbo 310.00

Table 14. Price per tray of Eggs from the Poultry Farms/Direct Competitors

Siz FARM FARM FARM FARM FARM FARM FARM FARM FARM FARM
e 1 2 3 4 5 6 7 8 9 10
S 220.00 230.00 230.00 220.00 230.00 220.00 230.00 240.00 230.00 220.00
M 250.00 260.00 260.00 260.00 260.00 250.00 260.00 270.00 250.00 260.00
L 270.00 270.00 270.00 270.00 290.00 280.00 280.00 280.00 280.00 280.00
XL 290.00 290.00 20.00 290.00 280.00 290.00 280.00 290.00 280.00 270.00
J 320.00 320.00 310.00 310.00 320.00 320.00 310.00 310.00 320.00 310.00

Table 15. Price per tray of Eggs from the Wholesalers

Size Store 1 Store 2 Store 3 Store 4 Store 5 Store 6 Store 7 Store 8

S 280.00 290.00 285.00 290.00 280.00 290.00 290.00 280.00
M 290.00 300.00 310.00 300.00 300.00 300.00 300.00 290.00
L 310.00 310.00 320.00 310.00 320.00 320.00 310.00 300.00
XL 320.00 320.00 330.00 320.00 330.00 340.00 320.00 320.00
J 330.00 340.00 340.00 330.00 340.00 340.00 330.00 340.00

Table 16. Price per piece of Eggs from the Sari-Sari Stores/ Retailers

Size Sari-Sari Sari-Sari Sari-Sari Sari-Sari Sari-Sari

Store 1 Store 2 Store 3 Store 4 Store 5

S 10 11 10 10 10
M 11 12 11 11 11
L 12 13 12 12 12
XL 13 14 13 13 13
J 14 15 14 14 14

4. Marketing Channels of Distribution of the Product

 Plate 4. Marketing Distribution Channel

Poultry Farms

Wholesalers

Sari-Sari
Store/Retailers

Households/End-
users

5. Proposed Marketing Program

The types of advertisements and promotions that will be used are tarpaulins, flyers

and social media. The first two advertisement approach mentioned will only cover the

first month of the operation in order to introduce the proposed business to its target

market. While advertisements in social media will be used continuously throughout the

operation to ensure the promotion of the product.

Table 17. Marketing Program

Type of Quantity Cost/Unit Supplier/ Channel Amount

Advertisement

Tarpaulins 7 500.00 QC Reyes 3,500.00

Flyers 200 12.00 ARTSY MO 2,400.00

Printing Shop

Online Advertising - - Social Media Free

Total 5,900.00

CHAPTER IV: Human Resource Management and Legal Study

A. Organizational Structure

Plate 5. Organizational Chart

ESSU Poultry Farm will use the Flat Organizational Structure. Most employees of

ESSU Poultry Farm will work directly in the workplace, each employee will be

responsible for its own duty, and they don’t have the authority to power each other.

While the veterinarian and the bookkeeper, they will work once a month. The

problem will be taken directly through Income Generating Project Office of Eastern

Samar State University.

B. Functions and Responsibilities

Table 18. Functions of Responsibilities

Position Responsibilities and Functions

Manager/Cashier  Sees the overall operation of the business including the
production and distribution of eggs.

 Monitor the business’ standing.

 Forecasts the risk and formulate plans in order to solve

those risks.

 Manage transactions with costumers using cash registers.

Veterinarian (On-  Visits the farm once a month or when or when needed the
call) health of the layers.

 Give medication and vaccination if needed for the layers.

Bookkeeper  Records the daily activities of the business (inflow and

outflow of cash)

 Prepares the financial statements and other financial papers

every end of the period.

 In charge in keeping records of production of, laying

efficiency of the layers, mortality and other matters
concerning to stocks.

 Summarize the total sales, inventory, and expenses of the

company.
 Farm Workers 1,  In charge in everyday activities in the farm such as feeding,
2&3 watering, cleaning, houses, collecting manure, collecting and
weighing eggs and others.

 In charge the sizing of the eggs.

Driver  Loading, transporting, and delivering orders of eggs to

customers or businesses in a safe, timely manner.

 Deliver the collected eggs to the target market.

 Preparing reports relating to deliveries.

 Abiding transportation laws and maintaining a safe driving

record.

C. Compensation

1. Working hours

The farm operates 24 hours a day to provide full time supervision of the poultry

farm. The employees/workers will be given a one-day off every week. They will be

working 8AM until 5PM with one-hour break and 30 minutes snack break. There are

three shifts and rotation for the farm workers 6AM-2PM; 2PM-10PM; 10PM-6AM. The

veterinarian will be on-call only when the farm needs assistant for the health of the

layers, while the bookkeeper only needs to submit the records every end of the month.

There will be a daily time record of the working hours of the employees to keep track the

performance and number of work hours.

Table 19. Number of Working Hours in a day Per Employee

Personnel Working Hours Time

Manager/Cashier 8 hours 8AM-5PM

Bookkeeper 8 hours 8AM-5PM

Veterinarian 8 hours 8AM-5PM

Farm Workers 8 hours 6AM-2PM;2PM-10PM;

10PM-6AM

Driver 8 hours 8AM-5PM (may change

depending on the schedule
of delivery)
2. Proposed Salary Rate

The minimum wage rate in Eastern Samar for Agriculture- Nonplantation as of

2024 is P375-P405 per day according to the Department of Labor and Employment,

National Wages and Productivity Commission. For every employee in ESSU Poultry

Farm would earn P9, 000-P9, 720 depending on the position of the employees in the

term.

Table 20. Summary of Salary Rates of Administrative Personnel

Personnel Type of Number Daily Monthly Total Cost of

Personnel Rate Rate (PhP) Salary In a
(PhP) Year

Manager/Cashier Regular 1 - 18,000.00 216,000.00

Bookkeeper (every end Contractual 1 - 5,000.00 60,000.00

of the month)

Veterinarian (on-call) Contractual 1 - 3,000.00 36,000.00

Farm Workers 1,2, &3 Regular 3 1,125 27,000.00 324,000.00.

Delivery Man Regular 1 375 9,000.00 108,000.00

TOTAL 7 62,000.00 744,000.00

3. Holidays

ESSU Poultry Farm is governed the same as the private sector even it is owned

by the university. Workers is entitled for a specific rate depending on the whether they

work on regular holidays or special non-working holidays.

Regular Holidays

Dates Holiday
1 January 202 New Year’s Day
28 March 2024 Maundy Thursday
29 March 2024 Good Friday
9 April 2024 Araw ng Kagitingan
10 April 2024 Eid’l Fitr
1 May 2024 Labor Day
12 June 2024 Independence Day
17 June 2024 Eid'l Adha
26 August 2024 National Heroes Day
30 November 2024 Bonifacio Day
25 December 2024 Christmas Day
30 December 2024 Rizal Day

Special Holidays

21 August 2024 Ninoy Aquino Day

1 November 2024 All Saints’ Day
8 December 2024 Feast of the Immaculate

4. Night Shift Differential

ESSU Poultry Farm needs an employee who can work at night shift. Farm

Worker who assigned in the night shift will be compensated with a night shift differential

pay of 10% of the daily rate. (Conditions of Employment, P.D. 442, Labor Code, Chapter

1 ART. 86. Night-Shift Differential)

D.Benefits

The employees of the farm will get statutory benefits as per mandated by the law. These

benefits include SSS, Pag-Ibig, and PhilHealth. The employer will pay the monthly

contribution of their employees to these benefits based on their salary rate. SSS

contribution is computed through the contribution table, PhilHealth is computed by

multiplying the monthly rate to 5% and Pag-Ibig contribution by 2%.

Table 21. Social Security System

Personnel Monthly SSS SSS Total

Salary Contribution Contribution
-EE -ER
Manager/Cashier 18,000.00 810.00 1,710.00 2,520.00
Bookkeeper 5,000.00 - - -
Veterinarian 3,000.00 - - -
Farm Worker 1 9,000.00 405.00 855.00 1,260.00
Farm Worker 2 9,000.00 405.00 855.00 1,260.00
Farm Worker 3 9,000.00 405.00 855.00 1,260.00
Driver 9,000.00 405.00 855.00 1,260.00

Table 22. Pag-Ibig

Personnel Monthly Salary Pag-Ibig Pag-Ibig Total

Contribution - Contribution –
2% - EE 2% ER
Manager/Cashier 18,000.00 360.00 360.00 720.00
Bookkeeper 5,000.00 - -
Veterinarian 3,000.00 - -
Farm Worker 1 9,000.00 180.00 180.00 360.00
Farm Worker 2 9,000.00 180.00 180.00 360.00
Farm Worker 3 9,000.00 180.00 180.00 360.00
Driver 9,000.00 180.00 180.00 360.00
Table 23. PhilHealth

Personnel Monthly PhilHealth PhilHealth Total

Salary Contribution Contribution
5% - ER 5% -ER
Manager/Cashier 18,000.00 900.00 900.00 1800.00
Bookkeeper 5,000.00 - -
Veterinarian 3,000.00 - -
Farm Worker 1 9,000.00 450.00 450.00 900.00
Farm Worker 2 9,000.00 450.00 450.00 900.00
Farm Worker 3 9,000.00 450.00 450.00 900.00
Driver 9,000.00 450.00 450.00 900.00

7. 13th Month Pay

Table 24. 13th Month Pay

Personnel Monthly Salary 13th Month Pay

Manager/Cashier 18,000.00 18,000.00
Bookkeeper 5,000.00 -
Veterinarian 3,000.00 -
Farm Worker 1 9,000.00 9,000.00
Farm Worker 2 9,000.00 9,000.00
Farm Worker 3 9,000.00 9.000.00
Driver 9,000.00 9,000.00
.

E. Administrative Personnel

1. Proposed Number of Administrative Personnel

The proposed number of personnel of the business have the total of seven

employees. The proposed seven personnel are the Manager/Cashier, Veterinarian,

Bookkeeper, Three Farm Workers and Driver.

2. Proposed Organizational Chart

Plate 6. Organizational Chart

3.

Proposed job requirements

Position Job Requirements

Manager/Cashier  Male/Female
  Must have a Bachelor’s Degree of any business-
related course.

 Has at least 2 years managerial experience.

 Should be computer literate to do cashier-related

work.

 Possess managerial skills.

Veterinarian (On-call)  Must be a Doctor of Veterinary Medicine

 Minimum experience of 2-3 years

Bookkeeper  Male/Female

 Must be graduated in any accounting-related

course.

 Has National Certificate in Bookkeeping.

 Honest and Trustworthy.

 Must know how to compute, audit, and must be

computer literate.

 Possess computational skills.

Farm Workers  Male

 At least high school graduate

 Hardworking

 Can work with less supervision.

 Flexible in working either at day or night to ensure

the safety of the layers.

Driver  At least high school graduate.

 Should have a good driving record with no traffic

violations.

 Should have a valid professional driver’s license.

 Hardworking and trustworthy.

Table 25. Job Requirements

4. Availability and Source of Personnel

Eastern Samar is a predominant rural province in the Philippines, and it can offer

potential personnel for the egg poultry business industry. The availability of personnel in

the locality is high. Direct advertising will be used as a mode of hiring. This will be done

through posting announcements by the means of social media as there is a wide range

of audience and most people are engaged in using this platform, therefore, it will

effectively reach possible applicants needed for the business.

8. Management Style

ESSU Poultry will follow the consultative style of management within the business,

wherein the managers ask consistently the employees’ feedback and take employee’s

concerns seriously. There would be an open-door policy that encourages employees to

share what is and isn’t working in the organization. Though managers will consult with

the employees, they will have ultimate retain sole decision-making power.

9. Training Program

A well- structured training program for the poultry farm workers is very helpful for

the success of poultry farm operations. These are the training program that poultry

business follow:

1. Technical Education and Skills Development Authority (TESDA) offers the Animal

Production (Poultry-Chicken) NC Il course. This program will help workers on how to

feed the chickens properly, housing, and health management.

2. By focusing on biosecurity, workers must be trained on how importance biosecurity is.

This training will enhance the knowledge of the workers on how to clean and safeguard

the surrounding of the poultry.

3. Welfare of the birds, this training can educate workers on how to recognize the signs

of illness of birds, proper handling strategies of the birds are very important to minimize

the injuries.

4. Daily operations, workers require full attention of detail. They need to be more

knowledgeable in feeding and watering to ensure the nutrition and hydration of the birds,

proper washing and sorting of the eggs are critical tasks to maintain the high quality of

the eggs.

5. Health and safety of the workers, workers must be need to use the proper PPE to

protect from potential hazards. Implementing these 4 training programs can achieve

overall success of the poultry business.

10. Legal Compliance of the Business

Before the official business operations starts, the business will propose legal

compliance of the business in order to secure the business’s legality ahead of time. This
is to follow the government’s mandates and be able to pay taxes legally. This is also one

good way of good business reputation towards the target market.

Legal Permits No. Of Units Price

Brgy. Clearance 1 400.00

Brgy. Business Permit 1 400.00

DTI Permit 1 500.00

Inspection Fee 1 100.00

Garbage Fee 1 200.00

Plate Fee 1 300.00

Mayor’s Clearance Fee 1 200.00

Application Fee 1 100.00

Certification Fee 1 50.00

Zoning Fee 1 200.00

Mayor’s Permit 1 500.00

Fire Inspection Fee 1 200.00

Annual Inspection Fee 1 120.00

Annual Electrical Inspection 1 326.00

Fee
Sanitary Permit Fee 1 100.00

Health Certification Fee 1 150.00

TOTAL 16 3,846.00

Table 26. Legal Requirements of the Business

CHAPTER V: TECHNICAL AND ENVIRONMENTAL STUDY

A. Product and Services

 The poultry project in Eastern Samar State University will mainly offer fresh poultry

eggs and committed to producing high-quality, affordable, and safe chicken eggs for the

local. The business will acquire from a supplier a Ready-to-Lay Chickens. Ready to Lay

Chickens are 18-20 weeks of age production-type females and have laid their first eggs.

The birds are able to easily adapt to life in the laying facility whether it is cage-type,

cage-free or free range. In ESSU Poultry Farm, the laying facility would be cage-

type.The produced egg will be distributed to the consumers of Borongan City including

the wholesalers, retailers, restaurants, bakeries and the households.

B. Project Site

Plate 6. Project Site

The project site is located in ESSU Compound, Brgy. Maypangdan, Borongan City.

The location is ideal for the poultry farm business because it is far from residential

houses which is beneficial both to the community and the farm. The farm will not cause

further nuisance due to the possible emission of bad smell and the birds will be away

from noise pollution. The location of the poultry farm images below is the location of the

Poultry Farm. The first image is the aerial view of the area, and the second image it is

where the existing poultry house of Eastern Samar State University to be reconstructed.

C. Service Flow
 Plate 7. Service Flow of ESSU Eggcellent Poultry Farm

Customer Arrives/
Inquire through FB Prepare and serve Thank the
Page and Contact the order Customer
Number

Settle the payment

Approach and
in the
greet the customer
counter/cashier

Hand/ Deliver the

Take the
order to the
customer's order
customer

D. Utilities

The business establishment will be using basic utilities in order to operate. Water

is one of it which will be used for the maintaining cleanliness of the entire area. We all

that in terms of this kind of business, sanitation, and cleanliness is one of the crucial

factors that entrepreneurs must consider. The water source will be coming from the

Borongan Water District since this is the only source of the locality. Next, is the electricity

which will be used for the equipment and lights to operate and the technical aspects in

order to guarantee the convenience to process the products. The ESAMELCO will be

the source of electricity. Lastly, is the Gas/Diesel that will be use in everyday

transportation. The nearest gasoline station will be the source.

Table 25. Estimated Utilities

Utilities Source Cost Per Month Annual Expense

Water Borongan Water 1,500.00 12,500.00

District

Electricity ESAMELCO 5,000.00 5,000.00

Gas/Diesel Gasoline Stations 3,500.00 3,500.00

Internet Connection Globe 1,500.00 1500.00

Total 11,500.00 21,500.00

 Machineries and No. of Cost/Unit Total Cost
Equipment Units

Delivery Vehicle 1 117.000 117,000

Cage and Accessories 3,000 136.17 408,500.00

Total 525,500.00

E. Machineries and Equipment

Table 26. Machinery and Equipment

F. Furniture and Fixtures

Table 27. Furniture and Fixtures

Furniture No. of Units Cost/Unit Total Cost

Office Chair 2 700.00 1,400.00

Wooden Tables 2 1,200.00 2,400.00

Filing Cabinets 1 3,000.00 3,000.00

Total 6 6,800.00

Office Equipment No. of Qty. Cost/Unit Total Cost

Computer 1 5,000.00 5,000.00

Printer with Scanner 1 8,000.00 8,000.00

Total 13,000.00

H. Office Equipment and Supplies

Table 28. Office Equipment

Office Supplies No. of Qty Cost/Unit 2025

Bond Paper 15 197.00 2,955.00

 Printer Ink 20 225.00 4500.00

Ball pen 15 75.00 1,125.00

Scissors 6 50.00 300.00

Packaging Tape 10 49.00 490.00

Puncher 5 45.00 225.00

Record Book 5 50.00 250.00

Time Card 200 5.00 2,000

Stapler 5 89.00 445.00

Staple Wire 20 46.00 920.00

Carbon Paper 1 799.00 799.00

Total Purchases 14,009.00

Add: Input VAT 1,681.08

Total VAT Inclusive 15,690.08

Table 29. Office Supplies

I. Cleaning Supplies

Cleaning Supplies No. of Cost/Unit 2025

Qty

Broom and Dustpan 6 119.00 740.00

Trash Bags 50 88.00 4,400.00

Disinfectant 15 94.00 1,410.00

Detergent 20 30.00 600.00

Alcohol 10 86.00 860.00

Tissue 15 30.00 450.00

Face Mask 12 119.00 1,428.00

Total Purchases 9,928.00

Table 30. Cleaning Suplplies

J. Repair and Building Maintenance

 The business will allocate budget for the repair and maintenance of the poultry

house. This includes fixing damaged facilities in the farm like roof, fence, minor damages

in cages, wiring, lightings, water pump, etc.

Table 31. Repair and Building Maintenance

Repairs and Maintenance 2025

Farm Building 20.000

Delivery Vehicle 16,375.00

Total 36,375.00

Notes:

Twice a year replacement of tires- 9,300.00 x 2 = 9,125.00

Thrice a year change-oil- 750.00 x 3 = 2,250.00

*every 3,000km Change-Oil- 25km/day x 365 days = 9,125km

Once a year Tune-up every 10-20 kms- = 5,000.00

K. Farm Supplies

Table 32. Farm Supplies

Farm Supplies- No. of Quantity Cost/Unit 2025

Laying Hen

Chicken Layer Mash 72 1800.00 1,555,200.00

Feeds

Vetracin 12 892.00 10,704.00

Egg Trays 12,960 9.00 116,640.00

Total 1,682,544.00

Feeds Consumption: 1,200 Heads

Feeds Consumption: 100grams per head

No. days: 30 days

Total feeds Consumption 3,600,000 grams per month

No. feeds in sacks (1 sack = 50 kilos) 3,600kilos/50kilos

Total No. of feeds in sack per month 72 sacks

 Month Feeds Cost P1,800 per sack x 72 sacks

Total No. of feeds Cost per month 129,600.00

Total No. of feeds Cost per month 129,600 x 12 months

Total Annual Feeds Cost 1,555,200.00

L. Land and Building

The total land area of the poultry farm totaled 2,000 square meters. Out of the

total land area, 531.25 square meters are allotted for the poultry house. The facility is

expected to have to have a 10 years useful life. The area is secured with fence to protect

the area from predators of the chicken as well as thefts.

M. Waste Disposal

An effective waste disposal system would be implemented in the poultry farm

which is essential for maintaining hygiene, preventing environmental pollution, and

complying with regulations imposed the local and national government.

The waste generated in poultry farm primary includes manure, bedding, material,

and other by-products. Some waste has economic value like the chicken, manure,

feathers, and beddings/litter.

Energy waste is another important consideration in the production process.

Despite efforts to optimize energy efficiency, there are inevitably losses during various

stages of production, such as during the milling or drying processes. Implementing

energy-efficient technologies, conducting regular energy audits, and investing in energy

recovery systems can help mitigate energy waste, contributing to both cost savings and

environmental sustainability.

Below is the comprehensive waste disposal system that would be implemented

in the farm:

1. Manure Management:

Manure from the poultry house will be collected regularly to avoid infestation of flies

and possible pathogens and will be dried under the heat of the sun to kill pathogens that

may harbor diseases before it will be stored in the storage facility with proper ventilation.
Composting system will also be implemented to convert manure into nutrient-rich

compost. This can be used as fertilizer for crops or sold as an additional stream.

2. Bedding Material

Used bedding material will be removed and changed every two weeks to maintain a

clean and healthy environment for the poultry. Rice hulls will be used as beddings or

litter for easy disposal and recycling or reuse. This will be incorporated in the composed

pit.

3. Wastewater Management

Wastewater generated from cleaning processes, during the slaughter, and other

practices in the farm will be treated if needed to remove contaminants. The farm also

has a septic tank for wastewater.

4. Feather and Offal Disposal

There are people that use feathers to be used as pillows, so feathers and offal will be

given to those who want it. The waste products of no economic value will be buried on

the designated area.

5. Plastic and Packaging Waste

Plastic Waste will be segregated from other wastes in the farm. This in compliance of

the Ecological Solid Waste Management Act of 2020. The Ecoswam collects these

plastics wastes regularly. The farm will establish partnership with local recycling facilities

to recycle plastic waste or use eco-friendly packaging materials.

6. Dead Bird Disposal

Dead bids will be promptly removed and disposed to prevent diseases spread.

Incineration and burying of the dead birds will be impose for proper disposal.

7. Hazardous Water

The farm will comply the RA 6969 Toxic Substances and Hazardous and Nuclear

Waste Control Act of 1960. Hazardous waste such as used chemicals or expired

medications will be identify and separated and treated before it will be disposed in the

designated facility.
11. Assessment of Risk

Assessing risks in a poultry farm is important for identifying possible hazards and

implementing measures to lessen them. Here are the list of possible risks and mitigation

practices to be implemented.

Table 31. Assessment of Risk

Risk Description Duration Risk Level Action to be taken

Disease Outbreaks From High Regularly monitor the health of the

now on chicken, and have a contingency

plan for disease management.

Perform a firm biosecurity measure.

Supply Chain Disruptions High Diversify and establish a good

relationship with reliable suppliers,

and have another option or plans for

alternative suppliers.

Market Fluctuations, such From High Stay updated and informed about

as changes in feed prices, now on market trends, demands for eggs in

changes in prices of ready- the market and maintain an

to-lay chickens supply, and outstanding financial management.

demand for poultry

products.

Weather related risk: storm From High Implement measures to extreme

and hot weather now on temperatures like having a facility

with proper ventilation. Construct

weather-resistant facilities.

Environmental Risks From High Comply environmental rules and

Now on regulations. Implement a sustainable

and environmentally friendly

practices.

Regulatory Compliance High Stay updated about government

policies and seek legal advice when

needed.
 CHAPTER VI: FINANCIAL STUDY

A. Major Financial Assumptions

B. Proposed capital contribution

C. Total Project Cost

D. Pre-Operating Cash Flow

E. Pre-operating Balance Sheet

F. Projected income Statement

G. Projected Balance Sheet

H. Projected Statement of Cash Flow

I. Statement of Changes in Equity

J. Schedule of Profit Distribution

K. Schedule of Accumulated Depreciation

L. Schedule of Salaries and Wages Distribution

M. Consumption Schedules

N. Notes to Financial Statement

a) Salaries and wages

b) Mandatory benefits

c) Depreciation for building

d) Depreciation for equipment

e) Depreciation for furniture and fixtures

f) Utilities expense

g) Revenue and cost of sales

O. Financial Statement Analysis

P. Vertical/Horizontal Analysis

P. Break-even Analysis
 CHAPTER VII: SOCIAL AND ECONOMIC FEASIBILITY

1. Employees/Workers

The reoperation of the poultry business in Eastern Samar State University will

provide a new job opportunity. In poultry industry, skilled employee is a need that is able

to do physical jobs. We will make sure that the wages are given fairly in exchange for

their fair service. As the revenue of the business increases since the Income Generating

Office has a plan of its expansion, there will be more employment opportunities.

2. Community

The proposed poultry business in Eastern Samar State University will have an

advantage in the community. In the sense that the constituents of the community

fostering awareness for sustainable poultry farming and promoting student involvement

and learning through hands-on experience.

3. Government

The project will follow the fair and free trade act which is the government regulated

policy. The business will contribute to the government by paying tax. The value added

tax charges by the seller from the customers will be collected and given to the Bureau of

Internal Revenue. The business will also help achieve the government goal which is

expand the economic growth of the province.

5. Other Societal Benefits

The school will be known for producing a locally produced poultry products,

particularly eggs which will be a factor for promoting local products. The management

will also be involved in the community’s effort in conserving the planet to promote well-

being of the community and the environment.

CHAPTER VIII: CONCLUSION AND RECOMMENDATIONS

APPENDICES:

a) References

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Practices. NBER Working Papers; National Bureau of Economic Research, Inc.
https://ideas.repec.org/p/nbr/nberwo/17091.html
Attia, Y. A., Rahman, Md. T., Hossain, Md. J., Basiouni, S., Khafaga, A. F., Shehata, A.
A., & Hafez, H. M. (2022). Poultry Production and Sustainability in Developing
Countries under the COVID-19 Crisis: Lessons Learned. Animals, 12(5), 644.
https://doi.org/10.3390/ani12050644

Department of Agriculture - Bureau of Animal Industry. (2022). Philippine Poultry Layer

Industry Roadmap*. Retrieved from https://www.bai.gov.ph

Hafez, H. M., & Attia, Y. A. (2020). Challenges to the Poultry Industry: Current
Perspectives and Strategic Future After the COVID-19 Outbreak. Frontiers in
Veterinary Science, 7(516). https://doi.org/10.3389/fvets.2020.00516

Lañada, E. B., Lee, J. A., More, S. J., Cotiw-an, B. S., Taveros, A. A., & Copland, J. W.
(2000). Smallholder chicken production in the Philippines: Characteristics,
management practices, and disease problems. Preventive Veterinary Medicine,
44(1-2), 1-10. https://doi.org/10.1016/S0167-5877(99)00095-4

Lañada, E., & Amihan, D. (2014). Identifying Constraints and Opportunities for Improving
the Health and Productivity Of Chickens Raised By Smallholder Farmers In The
Marginal Upland Barangays Of Inopacan, Leyte, Philippines. , 278-296.
https://doi.org/10.32945/atr36s19.2014.

Mottet, A., & Tempio, G. (2017). Global poultry production: current state and future
outlook and challenges. World’s Poultry Science Journal, 73(2), 245–256.
https://doi.org/10.1017/s0043933917000071

Philippine Institute for Development Studies. (2023). Enhancing the Competitiveness of

the Philippine Livestock, Poultry, and Dairy Industries. Retrieved from
https://www.pids.gov.ph

Rivera, L. (n.d.). Analysis of the Philippine Chicken Industry: Commercial versus

Backyard Sectors. Www.academia.edu.
https://www.academia.edu/31196977/Analysis_of_the_Philippine_Chicken_Indus
try_Commercial_versus_Backyard_Sectors
Palada, E. (2020). Effect of training on knowledge level of farmers about commercial

poultry and table egg production. Indian Journal of Science and Technology, 13,

646-653. https://doi.org/10.17485/ijst/2020/v13i06/148985
Sarnino, N., Berge, A., Chantziaras, I., & Dewulf, J. (2022). Estimation of the production

economic consequences of stopping partial depopulation in broiler production.

Animals, 12(12), 1521. https://doi.org/10.3390/ani12121521

Soliven, H. (2024). The significant role of organizational size on the level of non-financial

performance among livestock and poultry agribusiness firms in northern

mindanao, philippines. jes, 20(4s), 1972-1976. https://doi.org/10.52783/jes.2302

Tanquilut, N., Espaldon, M., Eslava, D., Ancog, R., Medina, C., Paraso, M., … & Dewulf,

J. (2020). Quantitative assessment of biosecurity in broiler farms using

biocheck.ugent in central luzon, philippines. Poultry Science, 99(6), 3047-3059.

https://doi.org/10.1016/j.psj.2020.02.004

Verdida, C., Galenzoga, V., Ratilla, T., Mazo, M., Saz, E., & Capuno, O. (2020). Coping

mechanisms and determinants of perceived status of men and women farmer

beneficiaries of the yolanda rehabilitation and reconstruction program (YRRP) in

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b) Letters

c) Certificate of Proofreading

d) Certificate of Editing

e) Turnitin

f) Articles of Partnership

g) Location Map and Plan of the store lay out

h) Gant Chart

i) Survey Questionnaires

j) Result of the Survey

k) Individual resumes
Note:

Format:

Text: Arial

Size: 11

Left: 1.5 inches

Right: 1 Inch

Up: 1 Inch

Down: 1 Inch

Prepared by:

DR. KEVIN Z. DACULES

College of Business Management and Accountancy

Business Administration Department

Eastern Samar State University

Instructor

Notes:

Slovin’s Formula in Determining

the Sample Size: n = N/1+Ne² n =

21,605/1+21,605(0.05) ² n= 393

The Average Annual Consumption derive from:

Annual Average Consumption=Total Consumption per year/Total Respondents

Annual Average Consumption=367,776 eggs/ 393

Annual Average Consumption=936 eggs per household

Computation for Projected Demand

Percentage of No. of Willing/

Total willing to buy =
Respondents
= 371/393

= 94%
2024 Historical Demand = 20,222, 280 x 94%

= 19,008,943

Arithmetic Straight-Line Method Formula:

Demand for 2024 = 20,222,480

Less: Demand for 2020 = 16,373,448

Arithmetic Straight Line Method = 𝐹𝑖𝑛𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 (2024) − 𝐼𝑛𝑖𝑡𝑖𝑎𝑙

𝑉𝑎𝑙𝑢𝑒(2020)

𝑁𝑢𝑚𝑏𝑒 𝑜𝑓
𝑦𝑒𝑎𝑟𝑠 − 1

= 20,222,280-16,373,448/ 5-1

= 962,208 Increase Per Year