1.0.

Project Title: BACKYARD PIGGERY PRODUCTION

2.0. Project Type: Adoption of Improved Production Facilities and

Technologies

3.0. Proponent:
3.1. Type: Sole Proprietorship

3.2. Name: Mr. Emmanuel P. Pacamalan

3.3. Address: Sitio Sapong, Brgy. Poblacion, El Salvador City

Misamis Oriental 9017

4.0. Coverage:
4.1. Location:
Piggery Project: Sitio Sapong, Brgy. Poblacion, El Salvador City
Misamis Oriental 9017

Intended Market: Farmers and Meat Vendors in Misamis Oriental

4.2. Product: Live Hog

5.0. Duration:
5.1. Pre-Implementation: 1 month

5.2. Implementation: year

6.0. Funding Requirement:

Loan Equity Total

Fixed Investment
Land 280,000.00 280,000.00
Buildings/Tool 230,000.00 230,000.00
Sow stocks 400,000.00 400,000.00

Cost of producing feeds 200,000.00 200,000.00

Total 600,000.00 510,000.00 1,110,000.00

 8.0. The Project:

8.1. Justification

El Salvador is one of the top contributors in agriculture. It is one of the

largest producer of poultry in Northern Mindanao and top producer of corn and
coconut in the province. However, farmers in the region remain to be poor and
marginalized due to a very low price of their products and to a high cost of
production. Since wherein corn is the major ingredient of hog feeds, it is an
advantage to open swine producing business.

With funds exhausted from the buying of the land and building, the owner
is now trying to look for external funding to purchase the stocks and feeds needed.

8.2. Project Description

The project involves backyard piggery with an introduction of Purebred and use
of Artificial Insemination (AI) in its breeding program.

8.3. Objectives
Generally the project aims to promote quality pork meat to compete the
backyard piggery with large scale one.

8.5. Location
Sitio Sapong, Brgy. Poblacion, El Salvador City , Misamis Oriental
9017

8.6. Budgetary Requirements

2. Building Construction Deepwell 50,000.00

Building 230,000.00
Water system installation 15,000.00
Electricity installation 15,000.00
Production Equipments 10,000.00
4. Purchase of Stocks Sow 150,000.00
Gilt 250,000.00
5. Feeds/Vitamins/ 200,000.00
Veterinary medicine
8.9.3. Technical Aspect

a. Farm Site and Layout

The owner has established a land, just about two kilometers away from
the national highway and about 100 meters away from the barangay road.The site
has accessible to essential services such as feed suppliers, water, and electricity
and electricity sources. The surrounding is suitable for construction of drainage
and manure disposal and is amply distant from residential houses and other farms.

b. Building Design
The project consist of one unit housing with four divisions. These shall
correspond to the stages of the pigs life cycle. First will be the breeding gestating
unit where gilts, sows and boars shall be housed. Bred sows shall stay in this unit
until three to seven days before the scheduled farrowing date. Second will be the
farrowing unit where the sows ready to give birth are kept until they wean their
piglets. Third will be the nursery unit where pigs are raised until they are eight to
nine weeks old or until they weigh 10 to 60 kilograms. Fourth will be a growing
and finishing where pigs are raised from the time they leave the nursery until they
are marketed.
In the construction of the breeder/gestating, farrowing, nursery and
fattener houses, proper building orientation shall be observed to ensure equal
distribution of sunlight and ample ventilation.
Housing units shall be open sided to ensure good ventilation, with a
maximum height roofing.
c. Building Cost Estimates
1. Breeding/Gestating Unit 395,000.00
2. Farrowing Unit 395,000.00
3. Nursery Unit 395,000.00
4. Growing/Fattening Unit 395,000.00
5. Bunkhouse/storage/IA room/feedmilling house 120,000.00
1,700,000.00

d. Tools and equipments needed

1. Artificial Insemination - One of the features of this up-scaling project is
the adoption of hand mating through artificial insemination. This technique has
the following advantages: 1. more sows can serviced; 2. it eliminates injuries as a
result of mating small gilts or sows to large boars; 3. venereal diseases can be
controlled; and performance tested boars can still be used when they are
incapacitated to perform natural mating. Hence, tools and equipment for this
purpose shall be purchased.
2. Feed-milling Another feature of this up-scaling project is the purchase
of feed-milling facilities and equipment to enable the cooperative to manufacture
its own feeds and thus reduce cost of production.
3. Production facilities and equipment Important facilities and
equipment to provide protection to the pigs, save labor input and minimize feed
wastage and animal losses shall be installed. These shall include farrowing crates
and farrowing rails, heat lamp and brooders, creep, breeding crate, feed trough,
automatic drinkers (nipples), loading chute, fed cart and scoop and weighing
scales. A pressurized water system shall also be installed

b. Labor Costs The existing labor cost in the locality is Ph150.00 per day.

c. Production Management Practices

Management covers all aspects of production, from the point of selection
and purchase of stocks onto marketing. As such, the following general
management practices shall be implemented:
1. Only healthy and vigorous stocks shall be purchased to replace aging
and culled breeders.
2. All newly acquired stocks shall be quarantined for not less than 30 days
and those showing signs of illness shall be isolated immediately. If after such time
the animals remain in good condition, allow them to join the resident herd.
3. A herd population which can be properly and effectively managed with
existing facilities and managerial skills on the farm.
4. Multi-site system shall be adopted wherein animals shall be grouped
according to size, age and function for ease in providing well-balanced rations
and to prevent spread of disease that are latent in older animals but are transmitted
to young pigs.
5. The animals shall be provided with well-ventilated and comfortable
houses. Too hot or too cold conditions, overcrowding and other forms of stress
shall be avoided. These conditions lower the resistance of the animals and render
them more susceptible to diseases.
6. Proper nutrition for all classes of swine shall be provided at all times to
maintain them in healthy condition. The feeding of wrong levels of feed nutrients
will seriously affect their performance and may even increase the cost of
production.
7. A sound herd health program shall be implemented. An effective
immunization and parasitic control program shall be pursued to safeguard the
health of the herd.
8. A high level of sanitation shall be maintained. Manure and other wastes
shall be drained away from the living and feeding areas. Pens shall be kept
thoroughly clean daily and surroundings shall be disinfected after vacating the
 pen before another batch of animals is brought in. Equipment and facilities that
are frequently and interchangeably used between herds/houses shall be properly
cleaned, sterilized or disinfected before use. Also, a regular disinfection program
shall be done to prevent the micro-organism build up of different diseases.
9. Systematic record-keeping shall be maintained. Aside from keen
observation, record keeping shall help in detecting and identifying animals to be
culled.
10. All marketable animals shall be disposed immediately. Keeping
animals longer than necessary will only decrease profit.
11. Dead animals shall be properly disposed. They may be source of
infectious diseases which may cause big losses in the piggery.
12. Caution shall be observed in allowing visitors in the production areas.
Disinfecting vats at the entrance of the farm shall be placed.

8.9.4. Financial and Economic Aspect

a. Cost Benefit Analysis

1. Cost of Operating a 10 Sow-fattener Project

Technical Starting Point:

Sow Level 10
Litter Index 2
Piglets born alive per litter 10
Mortality (piglets) 10
Weaning age 30 days
Weaning weight 6.5-8.0 kgs.
Culling rate 35%
Selection rate 80%
Reared piglets for fattening 1,800
Starting weight 15-20 kgs.
Market weight 85-90 kms.
No. of fattening days 110-120 days
Average daily gain 583

Feed consumption Volume Cost

Sow (breeder mash) 92,600 kgs. 2,055,720.00
Boar 3,600 79,920.00
Replacement stocks 1,056 23,443.00
Piglets (pre-starter) 6,750 182,250.00
Weaners 25,829 529,494.00
Starter mash 48,240 1,249,416.00
Grower mash 183,960 4,451,832.00
Fattener 127,800 2,926,620.00
 11,498,695.00
Financial Starting Points

Value of Land 280,000.00

Buildings
Acquisition Cost 1,700,000.00
Salvage Value 170,000.00
Lifespan 20 years
Farrowing pens 200,000.00
Feed-milling facilities 500,000.00
Equipment and farm tools
Weighing scale (1 unit) 25,000.00

Knapsack sprayer (1 pc) 3,000.00

Shovels (2 pcs.) 300.00

Brooder (4 pcs.) 6,000.00

Feed cart (1 pc.) 750.00

Refrigerator 10,000.00

Veterinary materials 2,000.00

Other tools 1,500.00
Total 2,728,550.00
Cost of Producing Feeds per/kg.
Pre-starter feed 27.00
Starter feed 25.00
Grower feed 24.20
Finisher feed 22.90
Breeder mash 22.20

Price per kgm. liveweight 90.00

Existing wage rate 150.00

b. Financial Analysis

Cost of Establishing a 100-Sow Level Fattener Production

Fixed investment
Land 280,000.00
Building 1,700,000.00
Farrowing pens 200,000.00
Feedmilling facilities 500,000.00
Farm Equipment and tools 48,550.00
Breeder stocks
 Existing Boars and sows 857,886.00
Addl 2 Boars x 25,000.00/head 50,000.00
Addl 20 Gilts x 18,000.00/head
360,000.00
Sub-total 3,996,436.00

Operating Expenses
Cost of Producing Feeds 11,498,695.00
Cost of Replacement Stocks 410,000.00
Veterinary drugs 115,000.00

Water and Electricity 100,000.00

Salaries and Wages 246,000.00

Repair and Maintenance 30,000.00
Sub-total
12,399,695.00
Total 16,396,131.00

c. Economic Analysis

Cost and Return Analysis

Total Return
Cash Return
Sales
Fatteners (1800x87x100) 15,660,000.00
Culled Sows (35x150x85) 446,250.00

Empty sacks 410,000.00

Total Returns
16,516,250.00

Total Cost Per Year

Cash Cost (Operating Expenses) 12,399,695.00
Non-Cash Cost (Depreciation expense)
Buildings 85,000.00
Tools and Equipment 75,000.00
Breeders 183,750.00
Interest on Loan 420,000.00

Total Cost 13,163,445.00

Net Income Per Year 3,352,805.00

Rate of Return on Investment (ROI) 20.45%

 d. Financial Statements

PROJECTED CASH FLOW STATEMENT

Particulars Year 0 Year 1 Year 2 Year 3

Cash Inflow

LBP Loan 3,500,000.00

Owners
Equity 298,550.00
Gross
Income 16,516,250.00 17,342,062.00 18,209,165.00
Total Cash
Inflow 3,500,000.00 16,814,800.00 17,342,062.00 18,209,165.00
Less: Cash
Outflow
Buildings/
Equipment 2,448,550.00
Operating
Capital 958,225.00 10,540,470.00 13,019,679.00 13,670,662.00
Breeding
stocks 410,000.00 378,000.00 430,500.00 378,000.00

Debt Service 1,423,537.50 1,423,537.50 1,423,537.50

Total Cash
Outflow 3,816,775.00 12,342,007.50 14,873,716.50 15,472,199.50

Net Cash Flow -316,775.00 4,472,792.50 2,468,345.50 2,736,965.50

Add:
Beginning Bal. -316,775.00 4,156,017.50 6,624,363.00
Cash
Balance -316,775.00 4,156,017.50 6,624,363.00 9,361,328.50

NPV=7,179,958.94
IRR=1368%
PROJECTED BALANCE SHEET

Particulars Year 1 Year 2 Year 3

Assets
Buildings, Furniture, 2,288,550 2,140,445.
Fixtures and Equipments 2,448,550.00 .00 00
Cash 3,527,985.40 7,364,049.80 11,413,327.21
Stocks 1,227,639.00 1,227,639.00 1,227,639.00
Total Assets 5,059,824.40 8,862,088.80 12,877,566.21
Liabilities
Land Bank Loan 1,263,885.40 999,437.05 703,254.90
Total Liabilities 1,263,885.40 999,437.05 703,254.90
Owner's Equity 526,220.00 526,220.00 526,220.00
plus Accumulated Net 3,269,719.0 7,336,431.7
Income 0 5 11,648,091.31
Total Owners Equity 3,795,939.00 7,862,651.75 12,174,311.31
Total Liabilities & 5,059,824.4 8,862,088.8
Owner's Equity 0 0 12,877,566.21

Amortization Schedule
Amount of Loan - 3,500,000.00
S.A. Amortization Interest Principal Balance
711,768.75 210,000.00 501,768.75 2,998,231.30
711,768.75 179,893.87 531,874.88 2,466,356.50
711,768.75 147,981.39 563,787.36 1,902,569.20
711,768.75 114,154.15 597,614.60 1,304,954.60
711,768.75 78,297.27 633,471.48 671,483.20
711,772.19 40,288.99 671,483.20 -o-

8.9.5. Socio-Economic Aspect

 The up-scaling of the business operations of the New Tumauini Cooperative is
envisioned to increase its profitability and income. Coupled with sound financial and
operational management, the NTC is expected to attain continuing growth and stability,
enabling it to give more benefits to members in the form of dividends and patronage
refund for those who shall purchase meat and meat products in meat shops proposed to be
established. This, in a way, will alleviate the economic status of the cooperative members.

8.9.6. Organization/Management Aspect

Like any other cooperative, the New Tumauini Cooperative has a three-tier
organization with the General Assembly at the top, followed by the Board of Directors
and officials, and the employees at the bottom. The organizational structure is presented
below:

GENERAL ASSEMBLY

Election Committee Board of Directors Audit & Inventory

Committee

Education & Management Staff Credit Committee

Training Committee

Manager

Bookkeeper Cashier Veterinarian Security Feedmill Caretakers

Guard Operator