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PROJECT STUDY ON NATIVE CHICKEN ( free-range SASSO)

EXECUTIVE SUMMARY PROJECT TITLE PROPONENT LOCATION PROJECT COST : : : : Native Chicken Production Mr. Louger Martinez Bgry. B. Titong, Masbate City P 1,500,000.00

SUMMARY OF THE PROJECT The native chicken production project using sasso breed is located at B. Titong, Masbate City. The proponent will fully develop a semi intensive kind of raising chicken. Selection Avicole de la Sarthe et du SudQuest or commonly known as SASSO is a poultry breeding company based in France, which specializes in colored poultry strains selected from over 30 years of breeding experience. The Teresa Farm of Mr. Antonio Innocencio in Rizal pioneered of importing some hatching eggs of SASSO of France and have adopted the strict standards of LABEL ROUGE in growing the birds. They had already brought in Parent Stocks of the SASSO breeders in the country, to help produce Island-born stocks of the freerange raisers. Native chicken raising is classified as one of the High - Yielding and Profitable business. Either it will be introduced to raisers and growers in Extensive or Semi intensive way of culturing. Allowing the birds to roam around the backyard is a free-range type of poultry raising. The project has a total capitalization of Php 1,500,000.00. The owners equity is Php 200,000.00 while the remaining balance Php 1,300,000.00 will represent as loan. The Return on Investment of the project based on Net Income is 16.42%, which is acceptable since it is greater than the rate of 12.75% p.a. of the GFI.

MARKET STUDY A. PRODUCT PROFILE native chicken

The SASSO native chicken is grown in a traditional free-range type which is different from the industrial or factory-white chicken not only in appearance but in texture of its meat and in taste. Within 30 days after its hatched, it is estimated that the bird is to weigh at around 1.75 kg. B. THE MARKET B.1. WORLD DEMAND

B.2.

PRIMARY MARKET

The country has experienced an impressive growth for the poultry industry, for the past three (3) decades. From the meager 50 million birds annually to 430 million birds by 1999. As per A.P. Innocencio Farms (Teresa Farms) study in the development of Village- Level Poultry Enterprises , in the countryside, the demand for poultry is highest. SELECTED CITY MARKETS Iloilo City Bacolod City Dumaguete City Cebu City Dipolog City Cagayan de Oro City Davao City Tagbilaran City Cotabato City Urdaneta City Baguio City Naga City Lucena City

VOLUME/DAY 2,000 1,500 1,200 2,500 1,000 1,500 2,000 500 1,000 1,000 1,000 1,000 800

PRICE /HEAD P 120 P 100 120 P 120 P 120 150 P 120 P 100 120 P 100 120 P 120 P 100 120 P 120 150 P 150 250 P 120 150 P 120

Source: Management Guide SASSO Free-range Colored Chicken

Masbate City and Legazpi City are considered as promising markets for native chicken. B.3 SUPPLY
VOLUME AND VALUE OF PRODUCTION, 2003 2004 2003 COMMODITY VOLUME VALUE (HEADS) (PESOS) LIVE CHICKEN 4,536 1,349,460.00 2004 VOLUME (heads) 4,536 VALUE (PESOS) 1,428,840.00

The production capacity is maintained with a 5% rate increase on the price per annum.

B.4 SUPPLY CAPACITY The produce within 150 days after hatched through incubator having 700 hens wherein 90% mother birds are to lay eggs. The 630 hens will have an average of 15 pcs. eggs at 20% mortality will then hatch 7,560 chicks. The survival rate of chicks is assumed at 60% or 4, 546 chicks until reaching its marketable size. A. MARKETING STRATEGY C.1. Channel of Distribution:

The chicken/birds to be produced by the project will be supplied to local buyers and to other Cities near the province. The existing lechon manok stores will also be tapped and offered. Supermarket and wet markets as well in the City of Masbate will be considered and prioritized for marketing. The company will initially sell the products while it is launch in the market and to the end-consumer. Dealership will be taken into consideration at the stage of establishment of the product. E.2. Pricing and Terms of Sales

The selling price of a native chicken will be fixed at the prevailing wholesale price. The current price of chicken is P 85 per kilo. E.3. Promotions

The chicken will be delivered from the farm to the market. However, if the buyer/s will buy and pick up from the poultry farm, a P5.00 per bird will be lessened.

TECHNICAL ASPECT

A.

PRODUCT DESCRIPTION

The term SASSO which is taken from the acronym Selection Avicole de la Sarthe et du Sudquest, is a poultry breeding company based in FRANCE, which specializes in colored poultry strains selected from over 30 years of breeding experience. The emphasis of SASSO breeds is to provide quality chicken different from the industrial or factory-white chicken. In the Philippines, the farm of A.P. Innocencio / Teresa Farm was the first to introduce the Native Chicken Raising using SASSO in mid 1997. They experimented on the potential of growing the free-range chickens from FRANCE. Initially, they imported some hatching eggs from SASSO of FRANCE and have adopted the strict standards of LABEL ROUGE in growing the birds. Currently, they had already brought in Parent Stocks of the SASSO breeders in the country. The project will raise 700 heads of high breed SASSO hens and 100 heads high breed roosters. B. MANAGEMENT OF LAYING FLOCKS (including roosters)

The starting period represents the most important part, to succeed with the laying flock. First and foremost, is to take all necessary bio-security measures in preparation of the house and gazing sites. It is better to rear birds on all-in/all-out system to avoid any major disease outbreak or high mortality. It is also best to limit the access of visitors and personnel in the poultry areas so as not to be a vector fro contamination. B.1 HOUSING THE LAYERS

The purchased healthy hens will be put to the laying house. Healthy hens have the characteristics of well developed bodies and exhibit deep yellow pigmented beaks and shanks to have a high productive performance. B.2. FEEDING THE FLOCKS

The bird should be given a layer mash with a protein content of at least 16 to 18 percent. The other nutrient requirements of laying hens are given with the following: Metabolized energy (k cal/kg) 2850

Protein (percent) Lysine (percent) Methionine (percent) or Methionine (percent) Cystine (percent) Minerals Calcium (percent) Phophorus (percent)

0.6

16 0.5 0.5 0.28 0.25 2.75

The best way to feed the birds are all mash system since it is cheaper and more readily available of the feed dealers in the strategic places in the province. The daily water consumption of laying hens is 5 7 gallons at moderate temperature. B. 3. LIGHT MANAGEMENT OF LAYERS In the farm, economically it will provide artificial light to layers, 14 to 16 hours daylength is recommended. A 50 watts incandescent bulb for every 25 sq m floor space is recommended. The height of the light bulb should be 2.4 to 2.7 m (8 to 9 ft.) from the floor. Normally, it is more profitable to keep layers for only the first laying year. However, the laying period maybe extended for another year if birds are force molted. Otherwise, the whole flock must be replaced. C. MANAGEMENT OF DAY-OLD CHICKS C.1. HOUSE PREPARATION

Bio-Security is a must. Since the day-old chicks are very sensitive to surrounding bacterial contamination, it is best to decrease the challenge by thorough cleaning and disinfection of house and all equipments.

SCHEDULE OF HOUSE PREPARATION

Day 0 Day 1 Day 2 Day 3 Day Day Day Day 4 5 6 7

Insectide Treatment Taking out equipment Cleaning and Drying Equipment soaking Disinfection Repairing House Cleaning & Drying of Equipment Installation of equipment Disinfection House Surroundings cleaning and disinfection Heat the chicks in the house

SPACE REQUIREMENTS FOR THE BROODING HOUSE AGE FLOOR SPACE FEEDER SPACE 1 feeder tray/100 (feed little but often) 2 in/bird or 1 feeder/25-30 birds CUPS/FOUNTS Per 1000 birds 8-10 cups/1000 20-25 cups/1000

From Day 1 to Heater area 5 Day 7 sq.ft./100 chicks From Wk. 1 to 0.2 sq.ft./bird Wk. 10 1.0 sq.ft./bird D. BROODING

It is very necessary during the first few days of the brooding period that all environment conditions, would promote the well being of the young birds. The day-old chicks, are quite fragile creatures and are in a way quite dependent on the poultry-raisers, for its survival. The very thin down feathers are not adequate for the birds to regulate its body temperature, or protect itself from extremes of temperature. Its body surface is at a maximum ration compared to its body weight, making it difficult for the birds to control its body temperature. The success in the brooding period will determine the success of the young flock. During the first 8 10 days, the chicks are not able to control their body temperature. The birds must be protected from extremes of hot and cold conditions. It is best to maintain a balance on the desired brooding temperature for the birds. TEMPERATURE NORMS DURING THE BROODING PERIOD HEATING BY BROODER SPACE HEATING

Age in days 0-3 3-7 7 - 14 14 - 21 21 - 28 28 - 35 35 - 42

To at the edge of the brooder 38oC 35oC 32oC 29oC

To in the living area > 28oC 28oC 28oC 28oC 22 - 28oC 20 - 22oC 18 - 23oC 17 - 21oC

To in the living area 31 33oC 31 32oC 29 31oC 28 29oC 22 28oC 21 22oC 18 21oC

To check the brooding conditions your could observe the chicks behaviour under the heaters: it will show the necessary changes needed in their environment to improve the comfort. Day by day, it is necessary to control temperature differences: it cannot be over 6oC. Feeders and drinker have to be put around the heaters, not too close, or not too far to affect the chicks. Their number should follow the rules mentioned previously and it is necessary to place them in alternate fashionto encourage feed and water consumption. Chicks should have eaten and drunk before they could face pathological problems. The litter is made with rice hull, wood shavings or straw (it is better to chop it to increase the absorbing potential). Moreover, it has tobe leveled to avoid excessive stress on day-old chicks. The heater or brooders, have to be lighted at least 2 hours before the chicks be put. Thermometers in different parts of the building could be used to control the temperature. POINTS TO BE CONTROLLED Day 1 Chicks control at the arrival Behaviour control Checking legs temperature and crop 1 hour after it is hatched Feed and water at will Visit 4, 8 and 16 hours later Chicks observation cartons removed out, egg trays Turned over, drinkers adjusted, feed changes Drinkers cleaning and disinfections corpes collected Guards moved away, lightening time and intensity Reduced

Day 2

Day 3 & 4

Day 5 -

Drinkers and feeders moved away, egg trays placed under feeders House ventilation starts Manure control Temperature reduced minidrinkers removed adjust drinkers height chicks behaviour controlled prevent any feed or water waste

E.

In the following days, step by step starting equipment is replaced by adult one CHICK WELL BEING Some important points to consider in ensuring the well-being of the chicks: 1. 2. 3. 4. Humidity Draft Litter Adequate Lighting

F.

DRINKING AND FEEDING The water consumption of the birds must be considered on a day to day basis, mainly to avoid wastage (especially if under medication) and to avoid excessive humidity inside the house. VOLUME PER 000 BIRDS AGE 1 2 3 4 5 6 7 8 9 AGE WATERING Gallon / 000 / change 1.00 2.00 2.00 3.00 3.00 4.00 4.00 4.00 5.00 WATERING Gallon / 000 / change ALW FEEDS Bags / 000 / day 0.15 0.20 0.25 0.30 0.30 0.35 0.40 0.40 0.45 FEEDS Bags / 000 / day

90.00

ALW

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

5.00 5.00 5.00 6.00 6.00 7.00 7.00 7.00 8.00 8.00 8.00 10.00 10.00 10.00 12.00 12.00 12.00 15.00 15.00 15.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 25.00 25.00 25.00 25.00

160.00

300.00

500.00

700.00

940.00

1,190.00 30.00

0.50 0.50 0.60 0.65 0.70 0.75 0.75 0.80 0.80 0.85 0.85 0.90 0.90 0.95 0.95 1.00 1.00 1.00 1.10 1.10 1.15 1.20 1.20 1.25 1.25 1.30 1.35 1.40 1.40 1.50 1.50 1.60 1.60 1.60 1.65 1.65 1.65 1.65 1.70 1.70 1.75 1.80 1.90

53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72

35.00 1,700 1,800

1.90 2.00 2.10 2.10 2.10 2.15 2.15 2.20 2.20 2.25 2.25 2.30 2.30 2.40 2.40 2.50 2.50 2.50 2.60 2.60

Feeding is the most essential for the growth of the birds from day (1) one until harvest. It is best that there is adequate amount of feeds given the birds on their day to day requirements. To condition the birds to easily find their feeds on the first day, it is advisable to use egg-trays, newspapers, or flat feeding trays. By the second day it is easy to introduce the chick-feeders for the birds. It is advisable to put feeds into feeders 3 to 4 times daily to encourage the birds to eat and minimize wastage. Never throw stale or rancid feeds into the litter, for this will cause more problems for the birds. Ensure that the quality feeds should be given to the birds to avoid nutritional problems.

G.

HOUSE EQUIPMENT REQUIREMENT

Area Brooder Drinkers Feeders Litter Lighting

10 birds/m2 (growing) 2 10 galloners (1-7 days old) 30 galloners (8-21 days old) 40-50 basins (growing) 10 feeders (1-7 days old) 30 feeders (8-21 days old) 40-50 basins (growing) 4 inches (starting) 10 birds/m2 (growing) 24 hrs 16 hrs (starting) 10 birds/m2 (growing)

H.

FEEDING FORMULAS It is necessary to feed them with good quality ration (high levels of protein and energy). There are two (2) types of formulas: starting during the first 5 weeks of growth until the slaughter age. Metabolizable energy has to be decreased during summer. Starting 0 35 days 3050 -3100 87-88 22-24 4-4.5 3-3.5 40-45 1.05-1.1 0.7-0.75 0.35-0.40 1.2 0.58 1-1.05 Growth 35 days slaughter 3100-3150 87-88 20-22 4-4.5 3-3.5 40-45 1-1.1 0.6-0.65 0.3-0.35 1.15 0.56 0.9-0.95

Metabolizable Energy kcal Dry, Material, % Crude Protein, % Crude Fat, % Cellulosis, % Starch, % Calcium, % Phosphorus, % Available Phosphorus, % Lysine, % Methione, % Methione + Csteine, %

To get the best quality meat, it is necessary to decrease the growth with a lower protein and energy level feed. I. DISEASES AND INNOVATIVE CURES

Use herbal and natural products to prevent or cure diseases. It has been proven of its effectiveness in treating certain specific diseases in animals, it is cost-effective and quite available in their backyards. 1. Chili used to treat respiratory problems appetite stimulant especially during heat stress dewormers Oregano used treat respiratory rales used to prevent and cure white diarrhea used for coccidiosis Paminta used to treat fowl pox Sibuyas used as antibacterial Luya used as antibacterial Damong Maria used to treat malaria Ipil-ipil used as a dewormer

2. 3. 4. 5. 6. 7. J.

PROJECT LOCATION The proponent owned a land for the proposed project site, which will be in Brgy. B. Titong, Masbate City. The site is located at around 100 meters from the seashore. The location need not much improvement since it was used with the same project and it was only stopped on year 2000.

K.

BUILDING A bunkhouse (made of light materials) will be constructed to serve as the office and quarters of the farm workers.

L.

FARM FACILITIES AND EQUIPMENT The layer house and the brooding house will be constructed with light materials. Brooders, feeders and drinkers will be automatically installed in the poultry house. Please refer to Schedule 1 for the construction cost.

M.

MANPOWER REQUIREMENT

To operationalize the project, the following personnel will be needed in the farm: Position General Manager Worker No 1 2 Rate/mo. (no salary) 35,000.00/worker

MANAGEMENT ASPECTS

PROJECT MANAGEMENT The proponent Mr. Louger Martinez is a native of Masbate City. He is a son of a businessman and may be considered as an experienced poultry raiser. The project is a single proprietorship with Mr. Martinez being the General Manager. MANPOWER COMPLEMENT General Manager he shall oversee the overall operation of the farm and ensure that proper care is being done. He will be assisted by two workers on the production aspect of the business. He will handle personally the marketing activities. shall be responsible for the overall farm activities. They shall serve as caretakers of the farm. Must be male 20-35 years old., healthy, hardworking and honest. Contractual workers will be hired to work on the poultry farm preparation and marketing activities. ORGANIZATIONAL STRUCTURE GENERAL MANAGER / OWNER

Workers

Contractual Workers WORKERS (2)

PROJECT TIMETABLE

ACTIVITIES Preparation of Documents (Registration, Preparation of Project Proposal) 2. Application with GFI 3. Approval of GFI/Loan Release 4. Farm preparation/construction 5. Breeders/Roosters acquisition 6. First Commercial Harvest

TIMETABLE June July July July August August February

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