INTRODUCTION

Background of the Project

Poultry production contributes significantly to food security

and nutrition by supplying humans with energy, protein, and vital
micronutrients, as well as the ability to convert a wide range of agri-
food by-products and wastes into human-edible meat and eggs.
Poultry is the most rapidly expanding agricultural sub-sector,
particularly in developing countries. The worldwide poultry industry
is predicted to expand as population growth, rising incomes, and
urbanization increase demand for meat and eggs. Poultry is an
important asset and key to poverty alleviation for smallholders and
the poor, both in rural and urban regions, giving income and market
participation. Birds can be sold as household insurance in times of
need. In 2021 the average farmgate price of broiler chicken in
commercial farms for October to December was quoted at Php
100.38 per kilogram, liveweight (PSA, 2021).
In spite of its many achievements, the world broiler industry
faces increasing challenges from increasing consumer power and
government regulations. In terms of resource endowment, given
that broilers are sensitive to changes in temperature and humidity,
the matter of ensuring maximum productivity would require that
these conditions be inherently favorable to lower the cost of
controlling diseases and the environment. Despite the fact that the
broiler meat is self-sufficient, challenges such as production
accessibility, sustainability, and inefficient resource utilization
persist (Abdurofi, 2016). The higher cost of feed is one of the main
reasons cited by many researchers on why the industry cannot
perform better and highly rely on the price trend of the main feed
ingredients (Elsedig et al., 2015). They claim that high feed costs, as
well as a lack of understanding about disease control, outbreaks,
selection, and domestication activities, are important issues in
broiler production. The feed cost in broiler production is a major cost
that accounts for around 70% of the total variable cost, while day
old chicks (DOC) account for about 22%, and the
 2

rest, including labor, vitamin, and equipment, account for less than
9% of the total variable cost (Ravindran, 2013).
Nowadays, there is an interest in novel sources of feed
additives that will improve production performance and poultry
health. Seaweeds can meet this demand because they are a readily
available, renewable source of biologically active compounds.
Seaweed powder from naturally occurring biomass, cultivated or
waste biomass, extracted components, post-extraction leftovers, or
liquid extracts–all of these types of seaweeds can be utilized in
chicken feed. The inclusion of dried Sargassum muticum also improves
the quality of meat and egg. S. muticum extract (SME) has various
biological activities, including antioxidant, antimicrobial and anti-
inflammatory properties. Seaweed contains a variety of vital
nutrients, including trace elements and bioactive compounds. They
can also be used as an alternative to antibiotic growth promoters
because of their distinct properties (Michalak, 2020).
In relation, broilers are usually fed with quality commercial
feeds to supply their nutrient needs for the normal growth and
development. However, many nutrients are not available, or if they
are, they are not utilized or digested efficiently by the birds, and the
majority are excreted in waste. Furthermore, seaweeds such as
Japanese wireweed (Sargassum muticum) have been utilized in poultry
to improve animal immune status, reduce microbial load in the
digestive tract, and enhance meat and egg quality (Frias and Cocal,
2017).
Thus, this project aims to determine the feasibility of broiler
production utilizing Japanese wireweed (Sargassum muticum) as a
feed supplement and also to determine its economic viability.

Objectives of the Project

Generally, this project aims to determine the feasibility and

profitability of establishing an Enterprise Development Project on
Broiler production utilizing Japanese wireweed (Sargassum muticum)
as feed supplement.
 3

Specifically, this project aims to:

1. assess the growth performance of the broiler chickens;
2. determine the mortality rate;
3. calculate the actual capital requirement; and
4. analyze the profitability ratios of the enterprise.

Significance of the Project

The project is significant for broiler raiser to gain knowledge

about the effectiveness of utilizing Japanese wireweed (Sargassum
muticum) as feed supplement. Thus, this could give the farmers the
information about seaweed which has plenty of essential nutrients
especially trace elements and several other bioactive substances. It
also improves animal immune status to decrease microbial load in
the digestive tract and for their beneficial effect on quality of poultry
meat and eggs.
The findings of this will contribute to the Local Government
Unit (LGU) particularly the Department of Agriculture to provide
additional information about seaweed as other alternative feed in
supplementing broiler production. Moreover, this can be used in
presenting the effectiveness of utilizing seaweed as feed
supplement for broiler production to other poultry farmer through
conducting seminars, webinars and symposiums.
The outcome of the project is beneficial to present
researchers or future researchers. It can serve as guide and basis to
improve poultry industry in the country. Thus, the result of the study
can be used for further studies related to seaweed as feed
supplement to another animal.
6
 MARKETING PLAN

Product Description

The project will raise 120 heads of broiler chicken for one
production cycle with a rearing period of 40 days and will be sold in
live weight basis. The breed of a broiler chicken that will be raised is
Cobb 500 chicken has the lowest feed conversion, best growth rate
and an ability to thrive on low density, less costly nutrition. These
attributes combine to give the Cobb 500 the competitive advantage
of the lowest cost per kilogram or pound of live weight produced for
the growing customer base worldwide (Winmix Soft, 2014). The
expected weight per chicken during the production cycle is about
1.6 kg. The projected mortality rate is 4% and the average live
weight of broiler chicken is 1.6-1.9kg in growing period of 40 to 45
days (Business Diary Ph, 2018).

Price and Pricing

Based on the survey conducted by the researcher in Tagoloan,

Misamis Oriental, the average market price Php170.00 per kilo and
the price will be set based on the market price for chicken meat.
There will be a discount to attract customers by offering discount
price of chicken while encouraging them to purchase more. Hence,
the pricing strategy will be determined based on the prevailing
market price.

Distribution

The project will use direct distribution around Tagoloan,

Misamis Oriental. It will offer free delivery for the bulk buyers and if
outside the said municipality there is an additional fee. The
proposed study will rent a vehicle to
 14

deliver the chickens to household consumers and fast-food chains

only if they wish to deliver. The negotiation will be done through call
or text and chats in social media account of the enterprise. The
product will be sold on cash basis only.

Promotion

The project will use social media and personal selling

promotion to promote the product. This strategy is way to promote
product in a more relaxed environment. This is direct marketing at
its best. Social networks connect with a world of potential customers
that can view the product offer. It will allow wider dissemination of
the information since many are using mobile phone. Personal selling
will also be done through taking sales talk with the potential
customers. It will help the enterprise to give details and chance to
get feedback and suggestion by the potential customers. Direct
marketing will be done via phone call and texts and emails.

People

The target market of the study will be the household and

enterprise sector like chicken meat vendors in the public market,
fast-food chains within and outside Tagoloan, Misamis Oriental.
Based on the initial survey conducted, a fast-food and meat shop
owner is willing to purchase and pick-up the live chicken if the
vehicle for delivery is unavailable.
 15

PRODUCTION PLAN

Project Location

Jezz Broiler Production Enterprise will be located at Zone 1

Baluarte, Tagoloan, Misamis Oriental. Baluarte is a barangay in
the municipality of
 16

Tagoloan, in the province of Misamis Oriental. Its population as

determined by the 2020 Census was 10,860. This represented
13.52% of the total population of Tagoloan. Baluarte is situated at
approximately 8.5438, 124.7411, in the island of Mindanao.
Elevation at these coordinates is estimated at 3.5 meters or 11.5
feet above mean sea level. One of the most essential elements is
project selection. A good location is important since it affects capital
investment and operating costs. The project location is a strategic,
long-term, and non-repetitive process. Without sound and thorough
location planning from the start, the new facilities may experience
ongoing operational issues in the future. The efficiency,
effectiveness, productivity, and profitability of a business are all
affected by its location. The proper location of new poultry farm is
essential. If facilities are built in unfavorable areas, problems may
arise. The best time to deal with possible issues is before they
happen. Proper planning will help prevent environmental problems
from occurring, and will save time, money and headaches in the
long run.
The chosen location at Zone 1 Baluarte, Tagoloan, Misamis
Oriental it is beside the Tagoloan River. The distance between the
project location and market is 0.5 kilometer away, and it takes 8
minutes to arrive. The location has a good source of water that can
give water to the chicken and clean the area. The location chosen
has enough space to enable the chicken to grow and have a fresh
air, thus meters away from neighbors and it is very accessible to the
proponent. Figure 1 shows the map of Baluarte, Tagoloan, Misamis
Oriental.
 17

Source: Google
Legend: - Project Location

Figure 1. Map of Baluarte, Tagoloan, Misamis Oriental

Production Facility

Poultry housing design is critical in determining the internal

climatic conditions of the housing for the chicken health, growth,
and productive performance. As a result, the planned poultry farm's
chicken housing system is determined by the current climatic
conditions in the region where the farm is located (Olayo, 2018).
Houses should be capable of maintaining appropriate temperatures
during the entire growing cycle, regardless of outside temperature.
Colder climates require additional insulation, whereas proper air
speed becomes crucial in a hot environment. The size of the house
each broiler requires one square feet of floor space, width of the
house not more than 22 to 25 feet in order to allow sufficient
ventilation and aeration at the mid-portion. The height of the sides
from foundation to the roof line is 6 to 7 feet. The foundation is
concrete with 1 to 15 feet below the surface and 1 to 1.5 feet above
the ground level. The floor extended 2.65 feet outside the wall on
all sides to prevent snake and rat problems. The door is open
outside in case of deep-litter poultry houses (Yin, 2021).
 18

The broiler house is made of a concrete bamboo. It is well

constructed and maintained in such a way that it does not cause
overcrowding. Located in such a way that the long axis is in the
east-west direction. This will prevent the direct sunshine over the
birds. The entire cycle of operation needs 6 weeks’ space
requirement. The computed the space requirement for 120 broiler
chickens and
16.80 sqm is a desirable space requirement. The rented broiler
house has a total area of 12 sqm, with a length of 6 ft and a width of
4 ft. This means there will be an additional broiler house to attain
the desirable space requirement of the 120 broiler chickens for
around 6 weeks. Further, the proposed study will rent Php 1,000.00
for around 1 month and 2 weeks, which will be paid after the
production is completed. Figure 2 shows the broiler house.

Figure 2. Broiler house

Production Flow

In the actual implementation, the project involves daily

operations. First, the preparation and construction of production
facility where 120 heads of chickens can be raised. Next is cleaning
and disinfecting of broiler house in order to prevent the chicken
from diseases. Then, procurement of day-old- chicks, commercial
feeds, production supplies, office supplies and preparation
 19

of seaweeds as feed supplement. It is an important activity to

maintain water and feeding management, brooding management,
growth monitoring and recording, health maintenance and waste
disposal until harvesting and marketing the product.

Star
t

Cleaning and Disinfecting of Broiler

House

Procurement of
1. Day-old-chicks
2. Commercial feeds
3. Seaweeds as feed
supplement
4. Production supplies
5. Office supplies

Water and Growth

Brooding Health Monitorin
feeding Maintenance
manageme Manageme and
nt and Waste Recording
nt Disposal

Harvesting and Marketing of Broiler

Chicken

Finis
h

Figure 3. Production process flow

 20

Cleaning and Disinfecting of Broiler House

The proposed project will ensure the cleanliness of the broiler

house. It will follow the guidelines of cleaning and disinfection of
poultry house, from dry cleaning, wet cleaning, washing and
fumigation. All surfaces must be thoroughly cleaned before
disinfection. The following procedure will be carried out. The first
step is to dry clean the area by sweeping away any dry items with a
cleaning equipment such as a stick broom. The second phase is wet
cleaning, which consists of three steps: soaking, washing, and
rinsing. Soak heavily filthy or dusty regions until they soften and can
be readily removed, then wash or disinfect every nook using a
concentrated solution of a neutral detergent with a pH between 6
and 8, or dish soap. After washing, rinse to remove any dangerous
residues. Lastly is air drying or sun drying the area.

Procurement of Day-old-chicks

It will purchase 120 day-old-chicks with class A quality chicks

and the breed of chicks is Cobb 500 at Php 30.00 per head at
Cagayan de Oro City. The total cost of purchasing cobb500 day-old-
chick is amounting to Php 3,600.00.

Procurement of Feeds

There will be a purchase of B-MEG brand to ensure the high-

quality feeds for broiler chicken efficiency and it is available around
the vicinity of Tagoloan Misamis Oriental. It will purchase chick
booster in day 1-7. The recommended rate is 10 grams per a day.
This means the project will purchase of 8.4 kilogram which cost Php
15.00 per kilo. For day 8-21, it will purchase broiler starter. The
recommended rate is 60 grams per day. This mean that the project
will purchase a total of 101 kg which cost of Php 35.00 per kilo and
 21
for day 22-40. The proponent will purchase broiler finisher. The
recommended rate
 22

is 90 grams per a day. This mean that the project will purchase a
total of 194 kg which cost Php 36 per kilo (Business Diary Ph, 2018).

Procurement of Seaweeds as Feed Supplement

The proposed study will procure Sargassum muticum at the

Baluarte with the price Php 10.00 per kilo. The other option is to
collect at the seashore since the proponent lived nearby the sea.
Seaweeds can be classified into three broad groups based on
pigmentation: brown, red and green. Sargassum muticum, commonly
known as Japanese wireweed, is a large brown seaweed of the
genus Sargassum. It is an invasive seaweed with high growth rate
(up to 10 cm per day during spring). It has an efficient dispersion.
The proponent will gather 21 kilogram of seaweed and wash it three
times to eliminate dirt, sand, and other contaminants. After
washing, the seaweeds will be dried for three days in the shade.
After drying, the stem will be cut and shredded using a bolo or
blender. Then the 10% crushed seaweed will be added as a feed
supplement in commercial feeds during the first 14–40 days of
broiler chicken's life. Considering the reduction of weight after
drying, there will be a total of 3 kilograms. The proponent will mix
10% or 10 grams of dried crushed Sargassum muticum with
commercial feed starting 14–40 days every morning as a feed
supplement for broiler chickens.
Seaweed loses weight and changes color when it dries. The
color changes due to the drying process and changes in moisture
content. The drying time will be between 3 and 5 days. For
appropriate and speedy drying, seaweed will be tedded or turned
often. The seaweed will be distributed thinly and evenly for efficient
drying. As users weigh the seaweed before and after drying, it will
notice that it will lose almost seven times its initial weight.
Therefore, having 7 kg of wet seaweed, it would only weigh 1 kg
after 3 to 5 days of sun drying. This is known as a wet to dry ratio of
 23
7 to 1 (FAO, 2012).
 24

Procurement of Production Supplies

The proposed study will purchase production supplies for the

whole operation. These are the bulb, extension wire, thermometer,
feeders, waterer and rent of weighing scale to monitor the weight of
the chicken. The proponent will purchase at Shopping Center at
Tagoloan. The projected cost of the production supplies is Php
790.00.

Procurement of Office Supplies

The proposed study will purchase office supplies such as

journal notebook, ledger, record, receipts, ballpen and pencil for the
use of monitoring, recording and marketing the broiler chicken. It
will be purchase at Shopping Center at Tagoloan. The projected cost
of office supplies is Php 60.00.

Water Management

The normal intake of feed: water is 1:2 but this ratio rises to
nearly 1:4 or even more when temperature exceeds 35-degree
Celsius. Birds need more water at higher temperatures. It is always
recommended to provide birds with cool water. It will ensure fresh
water is present when the chicks are placed in the cage. Water
consumption will increase from .01 liters per chick per day at one
week of age to .03 liters per chick per day at four weeks of age. The
caretaker will ensure the quality, height, pressure, mineral content,
and accessibility of water for the chickens. Drinking water accounts
for 70–80 percent of the bird’s daily drinking needs. Poultry will
generally consume more water than feed. As a result, water is the
most critical nutrient for poultry. An abundance of clean water will
reduce challenges and maximize performance (Altech, 2018).
 25

Feed Management

For a profitable broiler poultry production enterprise, quality

feeding is essential. Broilers need more energy and protein in their
diet since they must reach a consumable stage in a short period of
time (Nata, 2014). Good quality feed should be available for chicks
immediately after placement. Commercial broiler feeds contain
additives considered to be grown promoting substances. Feed
additives make broiler production profitable and help broiler farmer
control diseases (NDVSU, 2020).
The feeding system will be restricted, and it has been adopted
in broiler production to avoid a rapid growth rate, which is
associated with ascites, lameness, mortality, and poor reproductive
results. The proposed study will feed the chick booster to chickens
from 1–7 days, the broiler starter crumble from 8–21 days, and the
broiler finisher crumble will be fed from 22–40 days. The feed will be
incorporated with crushed dried seaweed, with 10 grams in every
kilogram. It will need 3 kilograms of crushed seaweed for a 26-day
period. The proponent will start to administer the seaweed starting
from 14 days up until the 40-day period. It will be administered
every morning and it will mix 10% or 10 grams of dried crushed
Sargassum muticum with commercial feed as a feed supplement for
broiler chickens. The enterprise will ensure that the broiler chickens
will be given the proper amounts of feeds and water. During the first
3 days when the chicks arrive it will be given an anti-stress that will
be incorporated in their water.
Brown seaweed can be included in the broiler chicken feed as
up to 10% of the grower diet starting from 11-25 days and up to the
broiler finisher 26-42 days or longer without affecting growth
performance or meat quality (Jacob, 2020). According to a study by
Christopher J. Cocal (2017), Sargassum muticum is best used as a feed
supplement for broilers, up to 10% with increased profitability
(Cocal, 2017). Table 1 shows the feeding guide.
 26

Table 1. Feeding
guide
Types of Feeds No. g/head/day Feedin Tota
of g l
days Syste estimat
to m ed
feed feed
in
kg
Chick booster mash 1-7 10g Restricted 8.4 kg
Broiler starter 8-21 60g Restricted 101 kg
crumble
Broiler finisher 22-40 90g Restricted 194 kg
crumble
Crushed Seaweed 14-40 10% or 10g Restricted 3 kg
mix with
commercial
feeds
Source: Business Diary PH (2018)

Table 2. Schedule of daily activities

Daily Activities Frequenc Time Schedule
y
Feeding Restricted 6:00 am, 11:00 am and 4:30
pm
Changing of water Regularly 6:00 am, 11:00 am and 4:30
pm
Cleaning of poultry Regularly 5:30 am and 5:30 pm
house

The time schedule of the daily activities will be done by the

caretaker and proponent. The daily activities include feeding the
chickens, changing the water and cleaning the broiler house. Water
changing will be done at 6 am, 11:30 am, and 4:30 pm regularly.
Cleaning of the broiler house will be done at 5:30 am and 4:30 pm.
The proponent will make sure that every chicken consumes the right
quantity of feed and supplements. Feeding will be done at 6 am, 11
am, and 4:30 pm. Table 2 shows the schedule of daily activities.

Average Daily Gain

When a broiler chicken has good welfare and its genetic

potential is utilized, such as using natural growth promoters, well-
formulated feed, and lots of water, a broiler chicken will grow and
 27
gain weight quickly. The average daily growth is simply the weight
gain each day over a given time period. If the chicken weighs 40
grams on hatch day and 170 grams on the seventh day (a week), it
grew (170-40 =130) 130 grams in seven days. Average Daily Gain =
weight gain/days = 130/7 =18.57grams. The average daily gain
(ADG) for the
 28

first week is 18.57 grams. Therefore, the average weight of a broiler

chicken per day for the first week is 40g + 18.57 = 58.57 grams.
With that, a male and female broiler chicken should attain the
average weight of 1.6 kilogram to 1.9 kilogram respectively
(Ezenwankwo, 2020).

Brooding Management

Brooding is an essential practice in raising broilers and is the

basis for achieving good results. The first seven days of brooding
are the most critical for properly heating and caring for broiler
chicks. If chicks are chilled, they will not grow properly. If chicks are
too warm, they can become dehydrated. This may lead to death or
delayed growth (Hi-Pro, 2016). It will begin operating the heat
source at least 24 hours before the chicks arrive. For the first week,
it will cover the floor of the brooding area with recyclable newspaper
as a bedding material. There will be four 50-watt bulbs to be used
for the operation. The chicks are in a vital stage, and they must
always keep an eye on them. If the chicks compress, it means
they're cold, and the bulb should be lowered; if they scatter, it
means there's too much heat, and the bulb should be pulled up.
During the first two days, the chicks will be exposed to constant
light. After that, each day will have 23 hours of light and 1 hour of
darkness. The study will also use the thermometer to check the
temperature of the broiler chickens.

Health Maintenance

The poultry houses and equipment clean is essential. The

proposed study will do its keeping job to ensure that they are
scrubbed, washed, and cleaned with hot water, detergents, and
disinfectants regularly. Also, all the dung and dirty litter will be
 29
removed. Overcrowding and overheating of the space will be
prevented. The proponent will make sure the chickens are
vaccinated, procure the required medicine at the right time, and
eliminate
 30

infected or unhealthy chickens from the broiler house to prevent the

spread of any infection or disease.

Waste Disposal

The poultry industry produces large amounts of solid waste.

There are many different waste management options for poultry
waste, including land application of litter as an organic fertilizer, bio-
gas production, and products for commercial purposes. Poultry
wastes are posing serious environmental pollution problems through
offensive odors and the promotion of fly and rodent breeding.
Therefore, the chicken dung will be collected, and the proponent
ensures the waste is properly disposed of and able to be used as
organic fertilizer. The collection of waste and cleaning of broiler
house will be done every day at 5 am in the morning and every 5
pm in the afternoon. The chicken dung will be placed on the plastic
bag and will be utilized as a source of manure for crop production
since there are plants in its vicinity. The proponent ensures that the
broiler house and surrounding area are kept clean to provide a
healthy environment for the growing broiler chicken and to prevent
infections caused by chicken waste.

Growth Monitoring and Recording

Broiler weight is an important parameter when growing

broilers. Broiler chickens have the genetic potential for significant
weight gain over a very short period of time. When the purchased
chicks arrive on the site, the proposed study will weigh 30% of
randomly selected chicks from the population to get the average
weight of the chicks. Then, the proponent will weigh a set of broilers
randomly selected every week, 30% of the population, and will put
an identification mark on the feathers using green paint to have an
 31
easy identification. Thus, the study will be properly monitored daily
by giving them
 32

the exact amounts of water, commercial feed, and Sargassum

muticum as a feed supplement for proper growth.

Mortality

Many of the systems and organs in broiler chicks are

immature during their first week of life. Several factors can have a
negative impact on chick morpho-physiology and welfare at this
age. The first-week mortality rate may reflect a decrease in chick
welfare early in life. Improving animal antioxidant activities through
feeding is one strategy to consider reducing flock mortality
(Manteca, 2020). The proponent will check the broiler chickens and
determine the mortality rate by calculating the total deaths, divided
by the number of chickens present in the cage on that day, and
multiplying by 100.

Harvesting of the Chicken

The broiler chickens will be weighed on the day of harvest in

the 40-day rearing period. The proponent will check each broiler
chicken to see if the target weight of 1.6 kg has been reached. The
proponent will prepare the materials needed, such as the carton and
straw, then directly deliver them to the customer if they wish to
deliver or pick them up.

Utilities

The proposed project location is blessed with water and

electricity. The electricity bill will be Php 500.00 for the whole
operation. The water expense will be Php 250.00 since there is
sufficient water in the area. This means the total utility expense is
Php 750.00 for the operation cycle. The caretaker and proponent
will make every effort to conserve water and electricity when they
 33
are not required.
 34

Transportation

The transportation expenses will be incurred upon travel to

the project location, purchase of day-old-chicks, commercial feeds,
seaweed, and marketing the broiler chicken. The transportation
expense for purchasing production supplies will be Php 300.00 for
the whole production period. Travelling from the house of the
proponent to the project location will cost nothing because it is
where the proponent lived. This means the total amount needed for
the transportation will be Php 300.00 for the whole production cycle.
 35

MANAGEMENT PLAN

Form of Business Ownership

Jezz Broiler Production Enterprise will use sole proprietorship

as a form of business ownership. In this form of business ownership,
it will have a legal requirement from the barangay. The proponent
will manage the enterprise and responsible for all the business
transactions and financial liabilities. This means that any debts
incurred must be paid by the proponent. This form of business has
several advantages and disadvantages. However, the proponent will
make sure to handle it smoothly until marketing of the chicken.

Organizational Structure

The organizational structure of the Jezz Broiler enterprise will

only have two positions, which are the manager and the caretaker.
The manager of the enterprise will be the proponent and will be
responsible for planning, controlling, and purchasing the production
supplies; transaction monitoring; and financial liabilities. The
manager of the enterprise is a student of a Bachelor of Science in
Agribusiness Management with experience and has an interest in
broiler raising production. On the other hand, the hired caretaker
will do the daily
 36

activities like feeding, changing of water, cleaning and disinfecting,

brooding, health maintenance, and waste disposal. The hired
caretaker is the father of the proponent and has experience in
raising chickens. All in all, the manager will oversee all the decision-
making while the caretaker will be in charge of the day-to-day
operations like feeding, changing of water, and many more. The
caretaker will be compensated with PHP 2,000.00. Figure 4 shows
the organizational structure of the business.

Name
Manager

Name
Caretaker

Figure 4. Organizational structure

Work Plan

The schedule of activities is outlined using the Gannt Chart.

The operation period will start in the first week of August 2022 from
the time of purchasing and raising the chickens until the second
week of September 2022 when the chickens are marketed.
Specifically, in the first week of August 2022, operations will be
cleaning and disinfecting the broiler house; procurement of day-old-
chicks; procurement of feed supplies; procurement of office
supplies; procurement of production supplies; water and feed
management; brooding management; and health maintenance. In
 37
the 2nd week of August 2022, the
 38

activities will be cleaning and disinfecting of the broiler house; water

and feed management; brooding management; health maintenance;
growth and monitoring and recording; and waste disposal.
Moreover, in the 3rd and 4th weeks of August 2022, it will have the
same activities as the previous week. Then, in the 2nd week of
September 2022, will be the harvesting and marketing of the
chicken and paying all the expenses incurred during the operation.
Table 3 shows the schedule of activities of the project.

Table 3. Schedule of activities of the Project

Month August September
Activities of the week 1 2 3 4 1 2 3 4
Cleaning and Disinfecting
Procurement of DOC
Procurement of Feed Supplies
Procurement of Seaweeds
Purchase of Production Supplies
Water and Feed Management
Brooding Management
Health Maintenance
Growth Monitoring and Recording
Waste Disposal
Harvesting and Marketing of the
chicken
Legend: - Schedule of Activities
 39

FINANCIAL PLAN

Capital Requirement

Jezz Broiler Production Enterprise needs a total working capital

requirement of Php 19,772.00 for the whole operation cycle. The
proponent will use the required capital for the cleaning and
disinfecting, procurement of day- old-chicks, procurement of feed
supplies, procurement of seaweed, procurement of production
supplies, health maintenance, growth monitoring and recording,
harvesting, and marketing of the chicken as well as to be used for
the operating expenses. Schedule 13 shows the total capital
requirement of the enterprise.
 40

Source of Financing

Jezz Broiler Production Enterprise will be financed by the

proponent’s parents with a capital requirement of Php 19,772.00 for
the entire production cycle.

Schedules

Schedule 1. Projected sales

No. Mortalit Remaining Averag Total Price Total Sales
y Rate number e Live Live per (Php)
of weight weight kilo
heads of heads (kg) (kg) (Php)
120 4% 115 1.6 184 170.00 31,280.0
0
Schedule 2. Projected cost of renting the broiler house
Particulars Total Cost (Php)
Rent Expense 1,000.00

Schedule 3. Projected cost of cleaning and disinfecting supplies

Materials needed Quantity Unit Unit cost Total Cost
(Php) (Php)
Stick broom 1 pc. 10.00 10.00
Detergent 6 pcs. 5.00 30.00
Zonrox 1 pc. 55.00 55.00
Total Cost 95.00

Schedule 4. Projected cost of day-old-chicks

No. of heads Price (Php) Total Cost (Php)
120 30.00 3,600.00
Total 3,600.00

Schedule 5. Projected cost of feeds

Types of feeds Total feeds Price/kilo (Php) Total Cost (Php)
to
consume (kg)
Chick Booster 8.4 15.00 126.00
Chick Starter 101 35.00 3,535.00
Broiler Finisher 194 36.00 6,984.00
Total 10,645.00
 41

Schedule 6. Projected cost of feed supplement

Particulars Quantity Price/kilo (Php) Total Cost
(Php)

Sargassum muticum 21 kg 10.00 210.00

Total 210.00

Schedule 7. Projected cost of office supplies

Particulars Quantity Unit Unit Cost Total Cost
(Php) (Php)
Ballpen 1 pc. 7.00 7.00
Record Notebook 1 pc. 12.00 12.00
Journal Notebook 1 pc. 22.00 22.00
Ledger Notebook 1 pc. 25.00 25.00
Receipts 1 stab 20.00 20.00
Total 86.00

Schedule 8. Projected cost of production supplies

Particulars Quantity Unit Unit Cost Total Cost
(Php) (Php)
Rent of weighing scale 1 pc. 50.00 50.00
Extension wires 2 pcs. 75.00 150.00
Feeder 2 pcs. 55.00 110.00
Thermometer 2 pcs. 80.00 140.00
Waterer 2 pcs. 50.00 100.00
Bulb 4 pcs. 60.00 240.00
Total 790.00

Schedule 9. Projected utilities expense

Particulars Cycle of operation Amount Total Cost
per cycle (Php)
(Php)
Electricity 1 500.00 500.00
Water 1 250.00 250.00
Total 750.00

Schedule 10. Projected transportation expense

Destination Amount per cycle Total Cost (Php)
(Php)
Purchasing supplies 300.00 300.00
and
materials
Total 300.00
 42
Schedule 11. Projected labor expense
No. of Laborer Cycle of Amount per cycle Total Cost (Php)
operation (Php)
1 1 2,000.00 2,000.00

Schedule 12. Projected marketing expense

Particulars Quantity Unit Unit Cost Total Cost
(Php) (Php)

Plastic twine 1 pc. 46.00 46.00

straw
Carton 20 pc. 5.00 50.00
Renting of vehicle 1 motorcycle 200.00 200.00
Total 296.00

Schedule 13. Projected total capital requirement

Items Total Capital Requirement (Php)
Working Capital
Production Cost
Day-old-chicks Expense 3,600.00
Feed’s Expense 10,645.00
Feed Supplement Expense 210.00
Labor Expense 2,000.00
Total Production Cost 16,455.00
Operating Cost
Production Supplies Expense 790.00
Cleaning Supplies Expense 95.00
Office Supplies Expense 86.00
Transportation Expense 300.00
Marketing Expense 296.00
Rent Expense 1,000.00
Utilities Expense 750.00
Total Operating Cost 3,317.00
Total 19,772.00

Projected Financial Statements

An important part of the business planning process is the

preparation of financial statements to predict the outcome of the
enterprise. To measure the enterprise's profitability, sustainability,
and effectivity, the enterprise will
 43

prepare three financial statements: the statement of financial

performance, cash flow statement, and the statement of financial
position.

Projected Statement of Financial Performance

The enterprise development project is projected to have a

total sale of Php 31,280.00 for the entire cycle. The total production
cost of the business is Php 16,455.00, which is subtracted from the
projected sales, resulting in a gross profit of Php 14,825.00 for the
entire cycle of production. The total amount of the operating
expense is Php 3,317.00 for the entire cycle of production. The net
profit of the enterprise development project is Php 11,508.00 for the
entire production. The exhibit 1 shows the projected statement of
financial performance of the Jezz Broiler Production Enterprise.
 44

Exhibit 1
Jezz Broiler Production Enterprise
Projected Statement of Financial
Performance For the period of August
2022-September 2022
Items Amount (Php)
Sales 31,280.00
Total Sales 31,280.00
Less: Production Cost
Day-old Chicks Expense 3,600.00
Feeds Expense 10,645.00
Feed Supplement Expense 210.00
Labor Expense 2,000.00
Total Production Cost 16,455.00
Gross Profit 14,825.00
Less: Operating Expense
Rent Expense 1,000.00
Production Supplies Expense 790.00
Cleaning and Disinfecting Supplies Expense 95.00
Utilities Expense 750.00
Transportation Expense 300.00
Office Supplies Expense 86.00
Total Operating Expense 3,021.00
Less: Selling and Administrative Expense
Marketing Expense 296.00
Total Selling and Administrative Expense 296.00
Net Profit 11,508.00

Projected Cash Flow Statement

A projected cash flow statement is used to evaluate cash

inflows and outflows to determine when, how much, and for how
long cash deficits or surpluses will exist for a farm business during
an upcoming time period. That information can then be used to
justify loan requests, determine repayment schedules, and plan for
short-term investments. It is best defined as a listing of expected
cash inflows and outflows for an upcoming period.
The total sales of broiler chicken will be Php 31,280.00 added
by the working capital of 19,772.00, the total cash inflow is Php
51,052.00 for the entire cycle of the production period. The total
cash outflow will be Php 19,772.00 and the net cash flow will be Php
11,508.00. Then, the net cash flow of 31,280.00,
 45

which is also the ending cash balance. The exhibit 2 shows the
projected cash flow statement of the Jezz Broiler Production
Enterprise.

Exhibit 2
Jezz Broiler Production Enterprise
Projected Cash Flow Statement
For the period of August 2022-September 2022
Items Amount (Php)
OPERATING ACTIVITIES
Cash Inflow
Total Sales 31,280.00
Cash Outflow
Day-old Chicks Expense 3,600.00
Feeds Expense 10,645.00
Production Supplies Expense 790.00
Cleaning and Disinfecting Supplies Expense 95.00
Office Supplies Expense 86.00
Feed Supplement Expense 210.00
Transportation Expense 300.00
Labor Expense 2,000.00
Marketing Expense 296.00
Utilities Expense 750.00
Rent Expense 1,000.00
Total Cash Outflow 19,772.00
Net Cash Flow from Operating Activities 11,508.00

FINANCING ACTIVITIES
Cash Flow
Jezz, Capital 19,772.00
Net Cash Flow from Financing Activities 19,772.00

Add: Beginning Balance 0

Ending Cash 31,280.00

Projected Statement of Financial Position

Projected balance sheets, also known as state of financial

position statements, indicate expected changes in a company's
financial condition, such as investments, other assets, liabilities, and
equity financing. Company owners or accounting experts use
forecasts to learn more about their firm and forecast income and
expenses for the future (Indeed, 2021).
 46

The entire cycle of production period has a total asset of Php

31,280.00, which is a form of cash. The working capital is Php
19,772.00 and the profit is Php 11,508.00 for the entire operation.
Exhibit 3 shows the projected statement of financial position.

Exhibit 3
Jezz Broiler Production Enterprise
Projected Statement of Financial
Position
For the period of August 2022-September 2022
Items Amount (Php)
Asset
Current Asset
Cash 31,280.00
Total Asset 31,280.00
Liabilities and Owner’s Equity
Owner’s Equity
Owner’s Capital 19,772.00
Add: Net Profit 11,508.00
Total Owner’s Equity
Total Liabilities 0
Total Liability and Owner’s Equity 31,280.00

Financial Analysis

A sustainable business and mission require effective planning

and financial management. Ratio analysis is a useful management
tool that will improve your understanding of financial results and
trends over time and provide key indicators of organizational
performance. Financial analysis is the examination of financial
information to reach business decisions. This analysis typically
involves an examination of both historical and projected
profitability, cash flows, and risk. The key source of information for
financial analysis is the financial statements of a business. The
financial analyst uses these documents to derive ratios, create trend
lines, and conduct comparisons against similar information for
comparable firms (Accounting Tools,2021).
 47

Table 4. Projected profitability ratio analysis

Ratio Computation Interpretation

Return Net Income It indicates that for

on ROI= every Php 100.00
Investme ---------------------------- capital investment by
nt (ROI) 100 the owner, the
Total Investment enterprise generates
a return on
11,508.00 investment of Php
ROI =--------------------100 58.20.
19,772.00
= 58.20%

Return on Net Income It indicates that for

every
Equity (ROE) ROE=-------------------100 Php 100.00 invested
Total Equity by the owner, there
is a
return on equity of
Php
11,508.00 58.20.
ROE= x 100
19,772.00
= 58.20%

Gross Profit Gross Profit It indicates that for

every
Margin (GPM) GPM=-------------------100 Php 100.00 sale, there
Total Sales is a gross profit of
Php 47.
40.
14,825.00
GPM= x 100
31,280.00
= 47.40%

Net Profit Net Profit It indicates that for

every
Margin (NPM) NPM=-------------------100 Php 100.00 invested
Total Sales by the owner, there is
a net
profit of Php 36.79.
11,508.00
NPM= x 100
31,280.00
= 36.79%
 3
8
LITERATURE CITED

Abdurofi, I., et al., ( 2016 April 23). Economic analysis of broiler

production in Peninsular Malaysia.
Retrieved from:
http://www.ifrj.upm.edu.my/24%20(02)%202017/(42).pdf

Abid, A. Zahid, P. & Zahid, E. (2014). Brown Seaweed as feed supplement for
broiler feed. Retrieved from:
https://www.researchgate.net/publication/

Akinbobola, A. (2017, November 10). How to Start Broiler Farming or

Raise Broilers? eBook Live stocking.
Retrieved from:
https://www.livestocking.net/how-to-startbroiler- farming-
successfully.

Al-Harthi, M.A. & El-Deek, A.A. (2012). Effect of different dietary

concentrations of brown marine algae (Sargassum dentifebium)
prepared by different methods on plasma and yolk lipid profiles, yolk
total carotene and lutein plus zeaxanthin of laying hens. Retrieved
from:
https://www.tandfonline.com/doi/full/10.4081/ijas.2012.e64
Ital. J. Anim. Sci. 11, 347–353.

Altech. (2018, June 21). 15 Management Tips for Better Poultry Performance
Potential. Retrieved from: Alltech. Https://www.alltech.com/blog

Azizi, M.N.& Loh, T.C. (2021). Is palm kernel cake a suitable alternative feed
ingredient for poultry. Retrieved from:
https://www.mdpi.com/2076- 2615/11/2/338/pdf

Berkhout, N. (2020, April 30). Philippines overtakes pork as preferred protein.

Retrieved from:
https://www.poultryworld.net/Meat/Articles/2020/4/
PhilippinesChickenovertakes-pork-as-preferred-protein-
576305E/

Clemence, B. (2008). Sargassum Muticum, Wireweed. Retrieved from:

https://depts.washington.edu/oldenlab/wordpress/wpcontent/u
ploads/

Chandran, A. (2015, October). Seaweeds: A Promising Source for

Sustainable Development. Retrieved
from:
https://www.researchgate.net/publication/281096441
Cocal et al., (2017). Sargassum Muticum as Feed Substitute for Broiler.
Asia Pacific Journal of Education, Arts and Sciences.
Retrieved from:
http://apjeas.apjmr.com/wp-content/uploads/2018/07/APJEAS-
2017.4.4.2.02.pdf
 39

Della, M.P. (2019, December 11). Early Feed Restriction in Broilers. I–

Performance, Body Fraction Weights, And Meat Quality. Early feed
restriction in broilers. I–Performance, body fraction weights, and meat
quality. Retrieved
from:
ScienceDirect.https://www.sciencedirect.com/science/article/p
ii/S1

Evans, F.D. & Critchley, A.T. (2014). Seaweeds for animal production use.
Retrieved from: https://link.springer.com/article/10.1007/s10811-013-

Ezenwankwo, S. ( 2021, November 17). Expected weight of broiler

chicken: Are you getting it right? Retrieved from:
https://www.poultryfarmguide.com/blog

Jacob, J. (n.d.). Seaweeds in Poultry Diets– Small and Backyard Poultry.

Retrieved from: https://poultry.extension.org/articles/feeds-
and- feeding-of-poultry/feed-ingredients-for-poultry/seaweed-
in-poultry

Magee, P. J.; O’hara, C.; Mcsorley, E.M. & Allsopp, P.J. (2019). Risks
and benefits of consuming edible seaweeds. Retrieved from:
https://pubmed.ncbi.nlm.nih.gov/30840077/

Manteca, X. (2020, February 17). Factors Associated with Cumulative

First- Week Mortality in Broiler Chicks. Retrieved from:
file:///C:/Users/asus/Downloads/animals-10-00310.pdf

Marine Drugs. (2017 Nov. 10). An Insight into Sargassum muticum

Cytoprotective Mechanisms against Oxidative Stress on a Human
Cell In Vitro Model. Retrieved
from:
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5706042/

Michalak, I., & Mahrose, K. (2020, July 18). JMSE | Free Full-Text |
Seaweeds, Intact and processed, as a Valuable Component of
Poultry Feeds. Retrieved from: https://www.mdpi.com/2077-
1312/8/8/620/htm

Morais, T., Inacio, A.; Countinho, T.; Ministro, M.; Cotas, J.; Pereira,
L.& Bahcevandziev, K. (2020). Seaweed Potential in the Animal
Feed. Retrieved from: https://www.mdpi.com/2077-
1312/8/8/559

Nata. (2014, September 14). Cobb 500. Performance and Nutrition

Supplement. Retrieved
from:
 40
https://www.winmixsoft.com/en/blog/item/cobb500.
 41

National Library of Medicine. (2013 Sep 4). Antioxidant, antiproliferative,

and antiangiogenesis effects of polyphenol-rich seaweed
(Sargassum muticum). Retrieved
from:
https://pubmed.ncbi.nlm.nih.gov/24078922/

Philippine Statistic Authority. (2021). Chicken Situation Report, April-

June2021. Retrieved from:
https://psa.gov.ph/content/chicken- situation-report

Rao, P.V.S.; Periyasamy, C.; Kumar, K.S.; & Anantharaman, P.

(2019).Chemical Compositions of Brown and Green
Seaweed, and Effects on Nutrient Digestibility in Broiler
Chickens. Retrieved from: https://www.mdpi.com/2076-
2615/11/7/2147/htm

Sahraei, M. (2012, January). Feed Restriction in Broiler Chickens

Production. Retrieved from
https://www.researchgate.net/publication/265026520
4
1
42