jamz,janeo fs

8/4/2019 jamz,janeo fs

1/89

Table of Contents Pages

Preface i

Acknowledgement ii

Introduction iii

Tables

Figures v

Chapter 1

Project Summary

Name of the Enterprise 1

Location 2

Descriptive definition of the Project 3

Projects Long Range Objectives

5

Feasibility Criteria 6

Highlights of the Project 7

Chapter 2

Market Study

Name of the Product 11

Composition and attributes of eggs 11

1


2/89

Other Uses of the Product 17

Major Users of the Product 20

Historical Demand 21

Historical Supply 22

Demand and Supply Analysis 23

Market Share 23

Historical Price 24

Marketing Costs 25

Marketing for Eggs 28

Chapter 3

Technical Study

The Product

31

Quality Maintenance 32

Factors affecting egg production 35

Egg Production Cycle 40

Production Planning 42

Equipments 47

Farm Lay-out 49

Production Costs 52

2


3/89

Storage of Eggs 55

Transport of Eggs 56

Chapter 4

Financial Study

Major Assumptions

57

Income Statement 61

Projected Income Statement 62

Cash flow Statement 63

Projected Cash Flow Statement 64

Balance Sheet 65

Projected Balance Sheet 67

Financial Ratio Analysis 68

Chapter 5

Socio - Economic Study 73

3


4/89

Chapter 6

Management Study

Management of the Layer Farm 74

Flock Care and Management 79

Sanitation and Waste Management 81

Form of Ownership 82

Tables

Table I - Historical Demand

Table II - Projected Demand

Table III - Historical Supply

Table IV - Projected Supply

Table V - Unsatisfied Demand

Table VI - Market Share

Table VII - Historical Price per Tray

Table VIII - Marketing Costs

Table IX - Total Cost for a Production Cycle

Table XI - Temperature and its effects on egg production

4


5/89

Table XII Sizes and Mass of Eggs

Table XIII -Production schedule

Table XIV - Production planning

Table XV - Farm Equipments and Costs

Table XVI - Materials Needed for Farm Construction

Table XVII - Expenses for rearing

Table XVIII - Costs for a production cycle 1st year

Table XIX - Production Assumption

Table XX - Expense Assumption

Table XXI - Revenue Assumptions

Table XXII - Income and Costs for a production cycle 1st year

Figures

Figure 1 - Egg Composition

Figure 2 - Direct marketing

Figure 3 - Lighting schedule

Figure 4 - Egg weight increase according to age of layer

Figure 5 - Percentage of productive laying flock over a periodof time

Figure 6 - Number of eggs produced over a period of time

Figure 7 - Floor Plan

Figure 8 - Front Face of the Farm

Figure 9 - Cage Size

5


6/89

Chapter 1Project Summary

A. NAME OF THE ENTERPRISE

Jamz Supreme Eggs is owned by Mr. Jeffrey D. Janeo. The name

of the business was derived from the name of the owner and his long

time partner Mae Ann P. Bahinting. J stands for Jeffrey, a is and,

and m is Mae Ann. Letter z is just an additional letter to make it

more unique.

Supreme in the sense that the business aims to be well known

to their costumers defeat its competitors by producing quality products

6


7/89

and maintain its supremacy to them. The owner is optimistic to be

successful in this chicken laying industry.

B. LOCATION

The location of the business is located at Purok #3, Brgy. San

Jose, Sto. Tomas, Davao Del Norte. It is in the backyard of the owner. It

is also located four kilometers away from the public market. The

location of the farm also is located far from the residence of the place

to avoid bad smell of the chickens waste. Water and electricity is also

available in the area which are very important in the operation.

In terms of transportation, the business firm can use the farm to

market road which is the project of the government. The said road

project is from the business firms location going to Fd. Rd. #5, Sto.

7


8/89

Tomas, Davao Del Norte. The road is conducive in delivering the

products and can ensure that there will be no cracked eggs delivered.

The farm is also located in an isolated place that will minimize the risk

of disease.

C. DESCRIPTIVE DEFINITION OF THE PROJECT

1. Related national programs

Jamz Supreme Eggs is in line with the Department of Agriculture

program, the poultry, piggery, duck raising and fruit and vegetable

farming activity. The said government agency are encouraging

entrepreneurs to engage into agricultural business and giving them

tips and effective strategy on how to manage it in a proper way. It is

also in line with the Philippines Agricultural Training Institute

abbreviated as ATI, is an agency of the Philippine government under

the Department of Agriculture responsible for training agricultural

8


9/89

extension workers and their clientele; conducting multi-level training

programs to promote and accelerate rural development; and ensuring

that research results are communicated to the farmers through

appropriate training and extension activities. The ATI is ISO 9001:2000

certified.

2. Affinity to the regional or sectoral studies

Jamz Supreme Eggs helps many sectors in the region or in any

other sectors which droves gain to them including wholesaling and

retailing of the product. Like the department stores, sari-sari stores,

and restaurants. The business firm is assuring that all the laying

chickens are healthy and disease free, in such a way all sectors in the

community will continue to patronize the product because they were

sure that it has a good quality.

3. Project Potential and Proponent

9


10/89


11/89

utility workers added to help unemployed citizen in the community.

And to help the economy in the sense that the tax will raise if the

project will be bigger. Jamz Supreme Eggs aims to operate not just in

Sto. Tomas but in the whole Mindanao, the firm also aims to engage

into other farming activities like broiler raising, duck raising and goat

raising.

Channel business profits to help fund other community facilities,

such as schools or churches. Improve environmental, agricultural, and

business awareness and understanding in the area.

E. FEASIBILITY CRITERIA

Technological

Technological feasibility measures the practicality of a specific

technical solution to the problem. It is also a measure of the availability

of technical resources and expertise.

Operational

Operational feasibility is a measure of how well the project will

work in the organization. How the management address the

11


12/89

operations strength and weaknesses. To make the operation at speed,

accessibility to the location is also important.

Economic

Economic feasibility is a measure of how cost effective the

proposed project will be. This is often called a cost-benefit analysis.

Benefits can usually be estimated during request analysis.

Schedule

Schedule feasibility is a measure of the ability of the project to

meet proposed deadlines. Deadlines may be mandatory or desirable.

Mandatory deadlines are often imposed when the government passes

a new law or changes an existing regulation.

F. HIGHLIGHTS OF THE PROJECT

1. History

The owner of the business choose to establish poultry egg

production an agricultural business because he noticed that there is no

such business established in his hometown Sto. Tomas, Davao Del

Norte. There is a poultry egg production in Bobongon, Sto. Tomas,

Davao del Norte owned by the Department of Agriculture by

Municipality of Sto. Tomas but it was not developed by the said

institution and its not that big. The purpose of the business is

12


13/89

commonly to earn profit and to help the people in the community by

providing job to several unemployed people. That is how the project

comes about.

Jamz Supreme Eggs produces quality eggs that are essential for

the daily needs and consumption of the people in the society. The

owner will do his best to maintain the supremacy of his product to his

competitors.

2. Project timetable and status

Description of activities Timeframe1. Acquisition of chicken coopequipments.

2 days

2. Construction chicken coop. 1 week

3. Registration of the business beforestart up:

a. Registration of business name withthe Department of Trade andIndustry

b. Application of Mayors Permit:

5 days

13


14/89

1. Municipal License2. Ecological Solid Waste

Management Permit3. Sanitation Permit

d. Bureau of Fire Protection Permit

4. Purchase Day-old chicks 1 day

5. Start of the Operations 1 week after the completion of

aboves activity

Layer starts giving eggs at the age of 15 to 20 weeks. The

operation is recommended to start in the month of February or March.

The layer is ready to lay eggs in July/August.

3. Nature of the Industry

Chicken egg production in the Philippines is a minor industry

compared to the broiler production sector that takes center stage in

the Philippine chicken trade. But the chicken layer sector had the most

growth between 2001 and 2002 because of the increase of chicken

layers in the country.

In 2002 alone, chicken egg production contributed 3% of the

total value of agriculture in the Philippines.

14


15/89

Egg production is the most progressive animal enterprises in the

Philippines today. The poultry industry in fact began as a backyard

enterprise but has shifted to the formation of very large integrated

contract farming operations.

The growth of tile poultry industry in the Philippines has indeed

been impressive but its problems including inefficient management

and the prevalence of many destructive poultry diseases and parasites

cannot be ignored.

With the current socio-economic problems in the country, the

chicken egg is one of the cheapest food products that are vastly

available in the market. The chicken egg is also considered as one of

the most complete food sources with high nutritional value. Chicken

egg production in the Philippines mainly serves the domestic market.

4. Mode of financing

The capital of the business will be come from the owners equity.

5. Investment Cost

Costs Pesos

Chicks (125x50) 6,250

15


16/89

Feeds 10,500

Housing 10,651

Vaccinations 2,000

Equipment 1,300

Total costs 30,701

Chapter 2Market Study

A. Product Description

1. Name of the Product

The chicken egg is most correctly named as Gallus gallus

domesticus. Gallus gallus is the wild form. The nameGallus domesticus

is also used.

16


17/89

A. Composition and attributes of eggs

An egg consists of shell, membrane, albumen or white and yolk.

The shell. The shell of an egg has a rigid yet porous structure. The

porous shell has great resistance to the entry of micro-organisms when

kept dry and considerable resistance to the loss of moisture by

evaporation. The color of the shell, which may be white or brown

depending on the breed of the laying chicken, does not affect quality,

flavor, cooking characteristics, nutritional value or shell thickness.

Shell membrane. Inside the shell there are two membranes. The

outer membrane is attached to the shell; the inner membrane is

attached to the albumen or egg white. These two membranes provide

a protective barrier against bacterial penetration.

Air space. An air space or air cell is a pocket of air usually found at

the large end of the egg interior between the outer membrane and the

inner membrane. This air cell is created by the contraction of the inner

contents while the egg cools and by the evaporation of moisture after

the egg has been laid. The air cell increases in size as time passes.

Figure 1 Egg composition

17


18/89

Source: American Egg Board, www.aeg.org

Egg albumen or white. The albumen of the egg is composed of the

outer thin albumen and the inner firm or thick albumen. The outer thin

albumen spreads around the inner firm albumen. The inner firm

albumen in high quality eggs stands higher and spreads less than the

outer thin albumen.

18


19/89

White fibrous strips. These are twisted, cord-like strands of egg

white, known as chalazae, which hold the yolk in position. Prominent

thick chalazae indicate high quality and freshness.

Yolk. The yolk is almost spherical and is surrounded by a colorless

membrane. The color of the yolk varies with the type of feed given to

the laying hen. If the laying hen is fed on maize, for example, the yolk

will become a bright yellow. The color of the yolk does not affect the

nutritional content.

The components of an egg weighing 60 grams are made up as follows:

yolk (29%) - 17.4 g

white (61.5%) - 36.9 g

shell (9.5%) - 5.6 g

B. Nutritional value

Eggs are a good source of high quality protein. They provide

important sources of iron, vitamins and phosphorus. As a nutritional

19


20/89

source of vitamin D, eggs rank second only to fish liver oils. Eggs are

low in calcium, which is discarded in the shell, and contain very little

vitamin C.

Eggs provide a unique and well-balanced source of nutrients for

persons of all ages. Hard-cooked egg yolks are of great nutritional

value as a major supplementary source of iron for infants. When

children reach one year of age they may also be given egg whites.

Eggs contain significant nutritional value, which is essential during

rapid body growth, and therefore are excellent food for young children

and teenagers.

Low caloric value, ease of digestibility and high nutrient content

make eggs valuable in many therapeutic diets for adults. During

convalescence, when bland diets may be required, eggs provide a

good nutritious diet. For older people, whose caloric needs are lower,

eggs are an easy, inexpensive and nutritious food to prepare and eat.

Availability, modest cost, ease of preparation, popular taste

appeal and low caloric value give eggs a primary advantage for human

nutritional needs.

C. Shell quality: texture, color, shape and condition

20


21/89

The ideal shape of an egg as established by tradition and by

practical considerations.

Shell quality characteristics that must be considered are as follows:

cleanliness

soundness (unbroken)

smoothness

shape

The two most desirable shell qualities, cleanliness and

soundness, are largely controlled by the production and handling of

eggs. Eggs with shell defects should be removed from eggs destined to

the retail trade. Clearly, consumers have adverse reactions to cracked

or dirty eggs. Even if the cracks in an egg are only visible when

candling, the micro-cracks may have serious consequences on quality.

These eggs may be sold locally and possibly only a few hours after lay.

When the membrane is broken as well as the shell, the contents

of the eggs can leak, and therefore the only practicable market outlet

is sale as egg pulp. If the eggs are dirty, for example, with blood or

feces, consumers will react unfavorably to them.

Although shell color is no indication of quality, consumers in

some markets may prefer white eggs or brown eggs. In such

circumstances, it is advisable to sort eggs by shell color.

21


22/89

D. Yolk and albumen quality

In quality eggs the yolk should be round, firm and stand up well,

and be yellow in color.

There is often prejudice against very pale or deeply colored

yolks, however, there are some exceptions. In some Italian markets,

for example, red yolks are a strong selling point. The yolk should have

a pleasant, mild egg odor and flavor and should be surrounded by a

large amount of upstanding thick white with only a small amount of

thin white. The egg white should have the normal slightly green-yellow

color, though it may be slightly cloudy in appearance.

Consumers are generally very critical of any abnormal conditions in

the egg yolk and white. Factors that may cause loss of quality are as

follows:

natural factors

temperature

humidity

time

handling

storage

tainting

22


23/89

2. OtherUses of the Product

A. Egg for the Face:

Egg can reduce the puffiness under the eye. Apply thin film

under the eye and allow to remain for 10-15mins.

Egg white mask can make the pores appear almost invisible right

away. Just apply the Egg white to a clean damp face and make it

stay for 10 min (sensitive and dry skin) and 20 minutes (normal

to oily skin).

Egg mask can make the skin tighter and firmer.

Egg yolk mask is ideal for those with sensitive and dry skin. Egg

yolk is rich in vitamin A that is a strong anti-wrinkle vitamin.

Egg mask is ideal for irritated skin, because it contains amino

acids that help nourish skin cells to reduce inflammation.

B. Restore Radiance to Stress and Damaged Hair.

Excessive exposure in the sun, pollution and chlorine from the

swimming pool can wreak havoc on your hair. To revive dry and

23


24/89

damaged hair, combine 1 egg yolk, 1 tbsp of olive oil and 1 cup

of water. Apply to damp hair from roots to tips and let sit for 5

minutes and then rinse with cool water. The yolk is rich in fatty

acids and when applied to dry hair will make it shiny for up to a

week. This concoction will also fortify hair with healing vitamin A,

E and D to combat future damage.

C. Egg white can keep the piecrust from getting soggy.

Fruits are often used as filling on pie recipes, but the juice from

fruits can make the crust soggy instead of flaky. To get a perfect

crust every time, using a pastry brush, coat the bottom of a

prebaked crust with 1 egg white. Let it sit for 2 minutes before

adding the filling, then bake as usual. Egg whites contains

Albumins a protein compound that form waterproof barrier that

prevents fruit juices from penetrating the piecrust.

D. Egg can make your plant stronger.

24


25/89

To keep indoor and outdoor plants healthy, crush leftover

eggshells and sprinkle over the soil. The nutrients-rich shells add

the dirt with calcium, a mineral that plants use to build the new

cell walls and membranes required for growth. The shells' sharp

edges scrape the soft bellies of outdoor pests like snails and

slugs, preventing them from snacking on the plants' leaves.

Beaten egg is also applied to leaves of indoor plants to make it

strong and shiny.

E. Restore the shine of your old leather

To restore the shine of your old and worn out leather, separate

the whites of 2 eggs into a bowl. Then use a dry cloth to apply

the whites to the leather in a circular motion. The proteins in the

egg whites moisturize the material to give it a like-new shape

and shine.

F. Egg white can be use as temporarily plug when a carradiator leak.

If there is a minor radiator leak and there is not time for you to

bring the car to the mechanic. It happens, the radiator springs

minor leak midweek when there's no time to get the car to the

shop. To keep the vehicle running until the drip can be fixed,

pour 1 egg white into the radiator (through the same opening the

coolant goes into) immediately after turning off the car. The heat

25


26/89

from the engine quickly cooks the egg, and the solid particles

sink into any holes, blocking the leak temporarily.

G. Egg white can be use as an alternative to Glue to bind lightmaterials like paper.

To do these just separate an egg white into a bowl, then use a

paintbrush to apply egg white in light material that needs to be

binded. The proteins in the egg white clump together to bind

pieces.

3. Major Users of the Product

Major users of the product are local bakeries, restaurants,

cafeterias, groceries, or sari-sari store, higher income families and

even lower income families and other regular users. The product also is

fit to all ages.

26


27/89

4. Historical Demand

The data gathered for the total number of household population

is from the Municipal Planning Development Office, Sto. Tomas Davao

Del Norte. According to them the population increases 1.92% every

year.

Table I Historical Demand

Source of population: MPDO Sto. Tomas

Table II Projected Demand

27

Year Population(Household

)

Estimated % of

thepopulatio

n

No. ofconsumer

(household)

Frequencyof used

eggs/month

MonthlyDemand

No. ofMonth a

year

AnnuaDeman

2007 65,122 40% 26,049 30 781,470 12 9,377,6

2008 66,372 43% 28,540 35 998,899 12 11,986,3

2009 67,646 45% 30,441 40 1,217,628

12 14,611,6

Year Projected Demand

1 14,903,587

2 15,201,658

3 15,505,691

4 15,815,804

5 16,132,120


28/89

Based on the historical demand data, the projected demand for

eggs will increase to 0.02 percent (see Table II for the computation).

5. Historical Supply

The Competitors of Jamz Supreme Eggs are the Jewms Eggs from

Panacan, Davao City, D.A Bobongon, Sto. Tomas Davao Del Norte and

Mahayag Farms also from Davao City. They are the main supplier of

eggs in Sto. Tomas public market. The proponent does not know what

is the exact capacity of the suppliers except in Bobongon farm. The

proponent makes some estimated capacity of the supplier based on

the opinion of the wholesalers and retailers because they could not

give detailed information.

Table III Historical Supply

Existing Suppliers 2007 2008 2009

DA, Bobongon 300,000 250,000 230,000

Mahayag Farms 1,500,000

1,700,000

1,800,000

Jewms Eggs 1,200,000

1,500,000

1,600,000

Total 3,000,000

3,450,000

3,630,000

Table IV Projected Supply

Year Projected Supply

28


29/89

1 3,884,100

2 4,155,987

3 4,446,906

4 4,758,189

5 5,091,268Based on the historical supply data, the projected supply

increase in eggs and able to use 0.07 percent in the projected supply,

(see Table IV for the computation).

6. Demand and Supply Analysis

PROJECTED DEMAND AND SUPPLY ANALYSIS

Table V Unsatisfied Demand

Year TotalProjectedDemand

TotalProjected

Supply

UnsatisfiedDemand

1 14,903,587 3,884,100 11,019,487

2 15,201,658 4,155,987 11,045,671

3 15,505,691 4,446,906 11,058,785

4 15,815,804 4,758,189 11,057,615

5 16,132,120 5,091,268 11,040,852

7. Market Share

The market share is computed based on the capacity of the firmto supply.

Table VI Market Share

29


30/89

8. Historical Price

History of the Price

Table VII Historical Price per Tray

PRICING

Usually market demand and supply determine egg prices. It is

important to ascertain market prices for eggs and the price trends over

a one-year period. Once market prices are known, we will be able to

calculate if that price or prices in a market or various markets will

30

UnsatisfiedDemand

ProposedProduction Volume

per year

Market Share%

11,019,487 36,000 .003

11,045,671 39,600 .00411,058,785 43,560 .004

11,057,615 47,916 .004

11,040,852 52,708 .005

Year Small Medium Large Extra

Large

Jumbo

2007 120 130 137 147 157

2008 123 133 140 153 163

2009 127 136 145 156 168

2010 130 140 149 160 172


31/89

cover their costs and give them a sufficient profit. It must be

remembered that prices change and that pricing information must be

up to date when calculating possible profits.

In pricing we must calculate both production costs and marketingcosts.

9. Production costs

Refer to Chapter 3 for a detailed description of production costs.

10. Marketing costs

Marketing costs will vary according to the method of marketing

chosen. The main operating expenses for marketing include:

packaging and storage;

handling;

transport;

product losses;

unexpected costs.

A. Packaging and storage costs. Costs for packaging include the

materials used for packaging, which may vary from a simple basket to

a carton made of plastic, tie back and labeling. The cost of storing the

eggs must also be considered.

31


32/89

B. Handling costs. The cost of packaging the eggs, putting them into

storage, loading them for transport and unloading them at their

destination must all be calculated as handling costs. Each individual

handling cost may not amount to much; however, the sum total of all

such handling costs can be significant.

C. Transport costs. Costs for transport will vary according to the

method of transport used and the distance covered.

D. Product losses. Product can be lost during the marketing period.

There are two types of losses - quality and quantity. Eggs exposed to

heat with consequent deterioration are an example of quality loss.

Breakage of eggs during transport on a bumpy road is an example of

quantity loss.

E. Fees, taxes and unofficial payments. It may be that set fees

have to be paid, for example, to a local authority for the use of a

market stall. Taxes will have to be paid and, in some situations, bribes

may be required to pass a roadblock or to access determined markets.

These are all costs that must be considered.

F. Unexpected costs. It is always important to calculate expenses for

unexpected events that may raise costs. For example, it could happen

that a road is closed and this may result in a longer distance to be

covered to consign eggs. This will raise costs.

32


33/89

Table VIII - Marketing Costs

Costs Pesos

Packaging/storage 500

Handling 1,040

Transport 1,040

Product losses 100

Fees, taxes, unofficial payment 220

Unexpected costs 100

Total costs 3,000

Table IX - Total Cost for a Production Cycle

Production costs PESOS

Rearing Expense 19,297

Houses 400

Equipment 200

Feed 77,027

Labor 6,000

Vaccinations 4,800

Mortality 600

Various expenses 3,600

Total production costs 111,624

Marketing costs


Handling 1,000

Transport 1,000

Product losses 100



Total marketing costs 2,920

Total costs 114,544

Price per eggs 5.00

33


34/89

Less: Cost of production and Marketing 3.15

Net Profit per eggs 1.85

Formula:

Total Costs/no. of days operated/no. of chicken = cost of

production and marketing

114,544/364 days/100 Chickens = P 3.15

11. Marketing for Eggs

The greater the distance between producer and consumer, the

more complex is the marketing organization required to ensure that

eggs reach consumers in the form, place and time desired. The owner

chooses the direct marketing.

Direct marketing includes the following methods of selling:

sales from the farm (farm gate);

door-to-door sales;

sales to local retail shops.

Figure 2 - Direct marketing

34

Producer


35/89

DIRECT MARKETING

Egg producers who are situated a short distance from consumers

may be able to practice direct marketing.

There are four main ways to carry out direct marketing.

Sales from the farm

Producers may be able to sell eggs directly from the farm (farm

gate). This, however, will depend on whether consumers are able and

willing to go to the producers facilities. The main advantage of farm-

gate selling is that the producer may be able to obtain a market price

for eggs without incurring marketing costs. The main advantage for the

consumers is that eggs will be fresh with little or no quality loss.

Door-to-door sales/street hawking

35

Door to DoorFarm Gate Retail Shop

Consumers


36/89

Some consumers prefer that eggs be brought directly to their

door. This means that the producer must spend time on marketing;

however, consumers may appreciate the service and be willing to pay

a good price. Furthermore, the producer can take orders directly from

consumers and carry only what he/she is assured will be bought.

Sales to local retail shops

Producers can also sell directly to local retail shops. This requires

some sort of agreement between the two parties regarding constant

supply, quality and payment methods.

In some cases it may be possible for producers to sell directly to

institutional consumers such as hotels, restaurants, schools and

hospitals. This type of direct marketing, however, requires negotiation,

which may result in a written contract of the duties and obligations of

both parties. It also requires continual interaction over time between

producer and buyer, a standard egg quality agreement and a constant

supply. The producer must carefully evaluate the issues involved

including the regular production and transport of large quantities of

eggs.

36


37/89

Chapter 3

Technical Feasibility

1. The Product

An egg consists of:

1. Shell

2. Shell membrane

3. Egg albumen or white

4. White fibrous strips

5. Yolk

2. Other uses of the Product1. Egg for the Face.

2. Restore Radiance to Stress and Damaged Hair.

3. Egg white can keep the piecrust from getting soggy.

37


38/89

4. Egg can make your plant stronger.

5. Restore the shine of your old leather.

6. Egg white can be use as temporarily plug when a car radiator leak.

7. Egg white can be use as an alternative to Glue to bind lightmaterials like paper.

3. QUALITY MAINTENANCE

Maintaining fresh egg quality from producer to consumer is one

of the major problems facing those engaged in marketing eggs. Proper

attention to production, distribution and point-of-sale phases are of

vital importance in maintaining egg quality.

4. Production factors

The main production factors that affect quality maintenance are the

following:

breed

age

feed

management

disease control

handling/collecting eggs

38


39/89

housing

A. Breed.The breed of the laying hen affects shell color; for example,

Leghorns produce white eggs, while Rhode Island Reds produce brown

eggs. The following egg quality factors are partly inherited: shell

texture and thickness, the incidence of blood spots and the upstanding

quality and relative amount of thick albumen.

Though it may not always be possible, a consistent policy of

selection for breeds by egg producers can bring noticeable

improvements to quality. From 5am to 3pm are the time layers giving

eggs. The layers must not be disturbed in their laying house. Avoid

cleaning or give feeds or waters within that time.

B. Age. Birds typically begin producing eggs in their twentieth or

twenty-first weeks and continue for slightly over a year. This is the best

laying period and eggs tend to increase in size until the end of the egg

production cycle. Birds lay fewer eggs as they near the molting period.

In the second year of lay, eggs tend to be of lower quality.

C. Feed. Egg quality and composition derive primarily from what a

layer is fed. In terms of taste, for example, eggs laid by hens fed on

fishmeal will have a "fishy" taste. The type of feed will also influence

the shell of an egg and the color of the yolk. Layers must be kept away

39


40/89

from certain plant foods if egg color defects are to be avoided. These

may include cottonseed meal and the foliage of the sterculiaceae and

malvaceae such as mallow weed.

Regular access to fresh or high-quality dehydrated green feed

helps birds to produce eggs with a uniform yellow yolk. Yellow maize,

alfalfa meal, and fresh grass provide good pigment sources for a

normal yellowish-orange yolk color.

D. Management.Good general management of the laying flock can

improve egg quality. If birds are treated correctly and not put under

conditions of stress they will produce properly.

E. Disease control.Diseases have an effect on egg quality. Infectious

bronchitis and Newcastle disease, for example, will cause birds to lay

eggs with poor quality shells and with extremely poor quality albumen.

Many of the birds continue to lay poor quality eggs even after

recovery. Effective vaccines should be administered.

F. Handling/collecting eggs. Frequent collection is essential each

day in order to limit the number of dirty and damaged eggs and also to

prevent the hens from eating the eggs. Careful handling is necessary

in order to avoid breakage.

40


41/89

G. Laying house.The number of dirty eggs produced can be reduced

significantly by providing good housing and clean nests for the layers.

Cleaning and hygiene operations should be carried out frequently.

5. Factors affecting Egg Production

Typically, a layers production cycle lasts just over a year (52-56

weeks). During the production cycle many factors influence egg

production; therefore, the cycle must be managed effectively and

efficiently in order to provide maximum output and profitability. The

following factors influence egg production.

A. Breed. The breed of the laying bird influences egg production.

Management and feeding practices, however, are the key determining

features for egg production. The owner chooses to use the white leg

horn breed.

41


42/89

B. Mortality rate. Mortality rate may rise due to disease, predation or

high temperature. The mortality rate of small chicks (up to eight weeks

of age) is about 2 percent; that of growers (between eight and 20

weeks of age) is about 3 percent; and that of layers (between 20 and

72 weeks of age) is about 10 percent. The average mortality rate of a

flock is from 15 to 20 percent per year.

C. Age. Birds typically begin producing eggs in their twentieth or

twenty-first week and continue for slightly over a year. This is the best

laying period and eggs tend to increase in size until the end of the egg

production cycle.

D. Body weight. In general, optimum body weight during the laying

period should be around 1.5 kg, although this varies according to

breed. Underweight as well as overweight birds lay eggs at a lower

rate. Proper management and the correct amount of feed are

necessary in order to achieve optimum body weight.

E. Laying house. The laying house should be built according to local

climatic conditions and the farmers finances. A good house protects

laying birds from theft, predation, direct sunlight, rain, excessive wind,

heat and cold, as well as sudden changes in temperature and

excessive dust. If the climate is hot and humid, for example, the use of

an open house construction will enable ventilation. The inside of the

42


43/89

house should be arranged so that it requires minimum labor and time

to care for the birds.

F. Lighting schedule. Egg production is stimulated by daylight;

therefore, as the days grow longer production increases. In open

houses, found commonly in the tropics, artificial lighting may be used

to increase the laying period. When darkness falls artificial lighting can

be introduced for two to three hours, which may increase egg

production by 20 to 30 percent.

In closed houses, where layers are not exposed to natural light,

the length of the artificial day should be increased either in one step or

in a number of steps until the artificial day reaches 16 to 17 hours,

which will ensure constant and maximized egg production. Effective

day length should never decrease during the laying period.

G. Feed. Free-range hens will produce more meat and eggs with

supplemental feed, but only if they are improved breeds or

crossbreeds. The selection of local hens is done on the basis of

resistance and other criteria rather than feed utilization for production.

Fresh and clean water should always be provided, as a layer can

consume up to one-quarter of a liter a day.

Figure 3 - Lighting schedule

43


44/89

Source: Smith

H. Culling. Culling is the removal of undesirable (sick and/or

unproductive) birds, from the flock. There are two methods of culling:

Mass culling, when the entire flock is removed and

replaced at the end of the laying cycle; and

Selective culling, when the farmer removes individual

unproductive or sick birds.

Culling enables a high level of egg production to be maintained,

prevents feed waste on unproductive birds and may avert the

spreading of diseases.

44


45/89

I. Climate.The optimal laying temperature is between 11 and 26 C.

A humidity level above 75 percent will cause a reduction in egg laying.

Figure 2 indicates the effect temperature has on egg production.

Table XI - Temperature and its effects on egg production

Temperature(C)

Effects

11 - 26 Good production.

26 - 28 Some reduction in feed intake.

28 - 32 Feed consumption reduced and water intake increased;eggs of reduced size and thin shell.

32 - 35 Slight panting.

25 - 40 Heat prostration sets in, measures to cool the housemust be taken.

40 and above Mortality due to heat stress.

Source:Kekeocha

When the temperature rises above 28 C the production and

quality of eggs decrease. Seasonal temperature increases can reduce

egg production by about 10 percent.

J. Management factors. Effective and efficient management

techniques are necessary to increase the productivity of the birds and

consequently increase income. This entails not only proper housing

and feeding, but also careful rearing and good treatment of the birds.

K. Vaccination and disease control. Diseases and parasites can

cause losses in egg production.

Some of the diseases are as follows:

45


46/89

bacterial: tuberculosis, fowl typhoid

viral: Newcastle, fowl plague

fungal: aspergillosis

protozoan: coccidiosis

nutritional: rickets, perosis

Some of the parasites are:

external: lice, mites

internal: roundworms, tapeworms

Vaccinations are administered to birds by injection, water intake,

eye drops and spraying. Clean and hygienic living quarters and

surroundings may eliminate up to 90 percent of all disease

occurrences.

6. EGG PRODUCTION CYCLE

Birds usually start to lay at around five months (20-21 weeks) of

age and continue to lay for 12 months (52 weeks) on average, laying

fewer eggs as they near the molting period.

The typical production cycle lasts about 17 months (72 weeks)

and involves three distinct phases, as follows.

46


47/89

Phase 1: Small chicks or brooders. This phase lasts from 0 to 2

months (0-8 weeks) during which time small chicks are kept in facilities

(brooder houses) separate from laying birds.

Phase 2: Growers. This phase lasts about 3 months, from the ninth to

the twentieth week of age. Growers may be either housed separately

from small chicks or continue to be reared in brooder-cum-grower

houses. It is important to provide appropriate care to the growers

particularly between their seventeenth and twentieth week of age as

their reproductive organs develop during this period.

Phase 3: Layers. Growers are transferred from the grower house to

the layer house when they are 18 weeks old to prepare for the laying

cycle. Birds typically lay for a twelve-month period starting when they

are about 21 weeks old and lasting until they are about 72 weeks old.

Figure 4 - Egg weight increase according to age of layer

47


48/89

Table XII Sizes and Mass of Eggs

Modern Sizes

Size Mass per eggCooking Yield

(Volume)

JumboGreater than 2.5 oz. or 71

g

Very Large or Extra-Large (XL)

Greater than 2.25 oz. or 64g 56 ml (4 tbsp)

Large (L) Greater than 2 oz. or 57 g46 ml (3.25

tbsp)

Medium (M)Greater than 1.75 oz. or 50

g43 ml (3 tbsp)

Small (S)Greater than 1.5 oz. or 43

g

PeeweeGreater than 1.25 oz. or 35

g

7. Production Planning

On average a bird produces one egg per day. Furthermore, not

all birds start to lay exactly when they are 21 weeks old. Planning is

48


49/89

therefore required for egg production to be constant so as to meet

market demand. A schedule similar to the one shown in Table 2, which

indicates on average satisfactory levels of production for a flock of

birds, can be used. In more temperate climates birds can produce on

average between 250 and 300 eggs per year.

In Table 2 the age of the flock is shown in the first column and

the percentage of birds that actually lay during that week of age is

shown in the second column. Usually at 21 weeks of age only 5 percent

of the flock lay.

As shown in the third column, for 100 birds at 21 weeks of age

only five would actually be laying. In the fourth column the actual

number of eggs produced is shown. On average a bird produces 208

eggs over a twelve-month period, which is a weekly production rate of

four eggs per bird. At 21 weeks of age 20 eggs are produced (five birds

produce four eggs each) and at 22 weeks 40 eggs are produced, etc.

The graph in Figure 3 shows the actual percentage of productive

laying flock over a period of time, and the graph in Figure 4 shows the

number of eggs produced over a period of time for 100 birds. Egg

production rises rapidly and then starts to fall after 31 weeks of age.

When less than 65 percent of the flock are laying eggs (71

weeks of age), it may become uneconomical to retain birds. Feed costs

49


50/89

and sales of culled birds for meat must be considered as well as prices

for eggs. In some instances when egg prices are high it may be viable

to delay culling birds until only 45 percent of the flock is still laying

eggs (78 weeks of age.

Table XIII -Production schedule (100 birds)

Age of flock (inweeks)

% of flocklaying

No. of birdslaying

No. of eggs producedper week

21 5 5 20

22 10 10 40

23 18 18 7224 34 34 136

25 52 52 208

26 65 65 260

27 74 74 296

28 84 84 336

29 88 88 352

30 92 92 368

31 94 94 376

32 - 39 88 88 352

40 - 47 83 83 332

48 - 59 77 77 308

60 - 64 73 73 292

65 - 70 70 70 280

50


51/89

Figure 5 - Percentage of productive laying flock over a period

of time

51


52/89

Figure 6 - Number of eggs produced over a period of time

Clearly, egg production requires planning for costs as well as for

profit generation and for meeting market demand. Planning involves

not only the number of eggs laid by the flock over a period of time, but

also when to hatch chicks to replace birds with diminishing laying

capacity.

52


53/89

If production is to be kept constant, a simple chart as shown in

Table 3, for example, will be needed to plan when new chicks must be

hatched so that they can be introduced to laying in time to pick up on

diminishing egg production.

Table XIV - Production Planning

Layer flocks 0 11 21 31 41 51 61 71 81

(......................... Time in weeks..........................)

1st layers Born Lay

2nd layers Born Lay3rd layers Born Lay

As indicated on the chart, the first layer flock was hatched at 0

weeks to become productive after 21 weeks. The second flock of layers

was hatched at the 21st week to be ready to lay after the 41st week,

as the first layer flock starts to diminish production. This type of

production entails having flocks of birds of different age groups.

Clean and hygienic living quarters and surroundings are essential

to control disease. There should be no more than three or four different

flock age groups present at one time. The mortality rate on average is

between 15 and 25 percent. This means that if one wants 100 birds to

lay, it may be necessary to buy between 115 and 125 small chicks.

8. Equipments

53


54/89

A. Feeding troughs or feeders

Feeders can be placed inside or along the front of cages. When

making feeders, consider the ease in cleaning and avoidance of feed

spillage. Feed spillage may be avoided by placing a metal or wooden

strip along the inner mouth of the feed trough.

B. Waterers

To facilitate cleaning, the shape and size of the waterers should

be semi circular, fairly wide and supported by an adjustable bracket to

permit easier adjustment. It may have a removal stopper at the

drainage end to allow for easier cleaning. For chicks, the waterers are

usually one gallon plastic jars

The most common waterers are the plastic waterers because

they do not rust therefore they will last longer.

54


55/89

C. Lighting

In shade houses, natural daylight must be supplemented with

artificial lighting in order to obtain desirable lighting patterns which are

necessary to adequately control sexual maturity. A constant or

decreasing lighting pattern during rearing is essential to prevent too

early sexual maturity. An increasing or constant light pattern is

necessary after 22-24 weeks of age.

D. Egg trays

It is where the harvested eggs are placed.

Table XV - Farm Equipments and Costs

Farm Equipment Unit Unit Cost Total cost

1. Feeders 5 100 500

2. Waterers 5 100 5003 Lighting 5 30 150

4. Egg Trays 30 5 150

Total 1,300

9. Farm Layout

55


56/89

Figure 7 - Floor Plan

6 m 5 m

2 m 1 m 2 m

Figure 8 - Front Face of the Farm

56

Rearingc

age

1m

Rear in

gcage


57/89

4 m

Figure 9 - Cage Size

Table XVI - Materials Needed for Farm Construction

Materials Unit Unit Total

57

.5 Squaremeters


58/89

Cost Cost

1. Galvanized Iron 12 pcs. 141 1,692

2. Round Timber post 6 pcs. 80 480

3. Wood ( 2 x 2) 10 pcs. 30 300

4. Wood ( 1 x 1) 20bundles

50 1,000

5. Sand 1 dump 1000 1,000

6.Cement 6 sacks 226 1,356

7. Screen (Plastic) 25m 120 3,000

8. Nails 4 1.5 kls. 60 90

9. Nails 2 3 kls. 64 192

10. Labor 7 days 200 1,400

11. Bisagra 20 pcs. 7 141

Total 10,651

10. PRODUCTION COSTS

58


59/89

Records should be kept of costs incurred during the operation

and of proceeds from the sale of eggs. Costs must be covered by the

sales of eggs. The difference between the proceeds from the sales and

costs incurred represents profit.

A. Brooder-grower stage

The costs to be considered are not only those concerned with the

birds during the laying period, but also those incurred in the brooder

and grower stage during which time no eggs are being produced. The

brooder-cum-grower stage lasts about five months (0-20 weeks). The

main costs to consider during this stage can be seen in Table 4.

B. Laying birds

Once the costs for the brooder-cum-grower stage have been

calculated, it will be possible to calculate costs for the laying birds.

Calculations may be made on a daily, weekly or monthly basis.

However, the most useful calculations are made at the end of the

laying cycle. Daily, weekly or monthly calculations give approximate

indications of costs and relative profits or losses. The main concern for

farmers during this period is probably whether or not the proceeds

from the sale of eggs cover feed and rearing costs. Feed cost is

generally estimated to be about 75 percent of the production cost of

eggs.

59


60/89

Comparing feed and rearing costs and egg proceeds for a week

or a month may give an indication of profitability or loss. A farmer

would have to subtract the cost of feed for a week from the proceeds

for the total number of eggs sold that week. Furthermore, the rearing

costs (expenses incurred before the birds start laying) should be

amortized. This can be calculated by dividing the total rearing costs by

the laying period.

11. Costs for the laying cycle

Calculations for the laying cycle (52 weeks) are more accurate

and enable the farmer to determine whether the egg laying enterprise

is running at a profit or a loss.

Table XVII - Expenses for Rearing

Costs Pesos

Chicks (115x50) 5,750

Feeds 9,597

Housing(maintenance) 200

Equipments(maintenance) 100

Labor 0

Vaccinations 2,000

Mortality 150

Various 1,500 Total costs 19,297

60


61/89

Costs. When calculating costs for the laying cycle, the main

expenditures to consider are:

rearing - rearing brooders until they become layers;

housing - building or maintaining laying house and brooder

house;

equipment - the cost of miscellaneous items such as

feeders, buckets, etc.;

feed - total feed used during the year;

vaccinations - medicines and veterinary visits;

mortality - loss of laying birds due to disease, etc.; and

various expenses - lighting, water, etc.

Table XVIII - Costs for a production cycle 1st year

Costs Pesos

Rearing (carried forward from table 4) 19,297

Houses(Maintenance) 200

Equipments(Maintenance) 100

Feeds 77,027

Labor 6,000

Vaccinations 4,800

Mortality 600


Total costs 111,624

12. STORAGE OF EGGS

61


62/89

The storage of shell eggs during the main laying season, in order

to conserve them for consumption when they are scarce, has been

practiced for many centuries.

For the successful storage of eggs, the following conditions must be

met.

The eggs placed in storage must be clean; they must not

be washed or wet.

Packaging material used should be new, clean and

odorless.

Loss of water due to evaporation should be reduced to a

minimum.

The storage room must be free from tainting products and

materials and should be cleaned regularly with odorless

detergent sanitizers.

The storage room must be kept at a constant temperature

and humidity must be checked.

There should be air circulation in the storage room.

Eggs should be stored so that they are allowed to breathe.

As far as possible, interior quality should be monitored;

there should be a good proportion of thick white, the yolk should

stand up well, and the flavor of white and yolk should be good.

62


63/89

13. TRANSPORT OF EGGS

For the successful transport of shell eggs three essential

requirements must be met.

a. The containers and packaging materials must be such that the eggs

are well protected against mechanical damage.

b. Care should be taken at all stages of handling and transport.

Workers handling eggs should be instructed so that they appreciate

the need for careful handling. The provision of convenient loading

platforms at packing stations, loading depots and railing stations, and

handling aids, such as hand trucks and lifts, are of great help.

c. The eggs must be protected at all times against exposure to

temperatures that cause deterioration in quality as well as

contamination, especially tainting.

63


64/89

Chapter 4

Financial Feasibility

1. Major Assumptions

Table XIX - Production Assumption

Number of chickens 115

Total Mortality Rate 15%

Mortality Rate ( Rearing period ) 3%

Mortality Rate ( Laying Period ) 12%

Total Mortality Loss (Birds) 15

Total number of Birds Laying Eggs 100

Length of Rearing Period (weeks) 25

Length of Laying Period (weeks) 52

Lag time between the Flock(Weeks) 2

Table XX - Expense Assumption

Raw material price growth rate 2%

DOC Cost (Day Old Chicks) 50

Weight of Feed Bag(Kg) 50

Rearing Period FeedConsumption/Bird/Month(Kilo)

427

Rearing Period Cost of Feed/Bird/Month 9,597

Laying Period FeedConsumption/Bird/Month(Kilo)

3,349

Laying Period Cost of Feed/Bird/Month 77,027

Vaccination Cost per Bird 3.49

Electricity Expense per Month 3,000

Water Expense per Month 600

64


65/89

Feeds consumed Computation

1. Rearing Period

First two weeks

Chick Booster 13gms x 14 days x 115 chicks = 21 kilos

21 kilos x P22 = P462

Preceding two weeks

Chick Starter 28gms x 126 days x 115 chicks = 406 kilos

406 kls. x P22.5/kl. = P9,135

Total price of feeds consume P9,597

2. Laying Period

Layer Mash 80gms x 364days x 115 chickens = 3,349 kilos

3,349 x P23/kl = P77,027

Table XXI - Revenue Assumptions

65

Availability of Eggs in Year 1 (Months) 12

Production Capacity in Year 1 (Dozens) 300

Eggs selling price (per Dozen) 60

Birds selling price 100

Chicken Manure Selling price( kilo ) 1

Feed Bags selling price 1,150

Sales price growth rate 10%


66/89

Income. When calculating income for the laying cycle, the earnings to

consider derive from:

the sale of eggs;

the sale of culled birds after the first cycle of production;

and

where applicable, manure sold as fertilizer.

Initially, capital is required to start an enterprise; proceeds from

the sales of eggs should, however, provide funds to continue with the

business before the end of the first laying cycle. Indeed, three months

after point of lay (30 -31 weeks of age), when the birds should

normally have reached peak production, the proceeds from the sale of

eggs should be sufficient to operate the business on a revolving fund

basis. The three-month period is sufficiently long even for the low

producing birds or those that peak late.

66


67/89

Table XXII - Income and Costs for a production cycle 1st year

Income PESOSSale of eggs (300eggs x 100chickens x 5pesos) 150,000

Sale of culled birds (P100 x 100chickens) 10,000

Sale of manure (1peso per kilo x 500kls) 500

Total income 160,500

Production Cost

Rearing Expense 19,297

Houses 400

Equipments 200

Feeds 77,027

Labor 6,000

Vaccinations 4,800

Mortality 600


Total costs 111,924

Marketing costs


Handling 1,000

Transport 1,000

Product losses 100



Total marketing costs 2,920

Total costs 114,844

67


68/89

Jamz Supreme EggsIncome Statement

For the fiscal year 2011

Sales 160,500

Less: Cost of Goods Sold

Feeds 77,027Rearing expense 19,297Labor 6,000 102,324

Gross Profit from Sales 58,176Less:

Operating Expenses:

Farm House Maintenance 400Equipments Maintenance 200Vaccinations 4,800Mortality 600Electricity expense 3,000Water Expense 600Depreciation Expense (Housing) 1,065Depreciation Expense (Equipment) 130 10,795

Selling Expenses:

Packaging/Storage 500Handling 1,000Transport 1,000Product losses 100Fees, taxes, Unofficial payment 220Unexpected losses 100 2,920

Net Income 44,461=====

68


69/89

Jamz Supreme Eggs

69

PROJECTED INCOME STATEMENT

Year1 Year 2

Year3

Year4 Year 5

Sales

160,50

0

176,55

0

194,20

5

203,91

5 220,228Cost Of Goods Sold

Feeds 77,027 78,568 80,139 81,742 83,377Rearing Expense 19,297 19,500 20,200 20,700 21,100Direct Labor 6,000 6,000 6,400 6,400 6,600

Total102,32

4104,06

8106,73

9108,84

2 111,077

Gross Profit From Sales58,17

672,48

287,46

695,07

3109,15

1

Less: Operating Expenses

Farm House Maintenance 400 500 400 450 480Equipments Maintenance 200 400 200 350 360Vaccinations 4,800 5,000 4,800 4,800 5,200Mortality 600 600 500 550 600Electricity expense 3,000 3,060 3,120 3,180 3,240

Water Expense 600 600 600 600 600DepreciationExpense(Housing) 1,065 1,065 1,065 1,065 1,065

DepreciationExpense(Equipment) 130 130 130 130 130

Total Operating Expenses10,79

511,,35

510,81

511,12

5 11,675

Less: Selling Expense

Packaging/Storage 500 600 550 560 620

Handling 1,000 1,050 1,120 1,130 1,150Transport 1,000 1,100 1,130 1,170 1,190Product losses 100 120 160 200 230Fees, taxes, Unofficial

payment 220 250 300 330 350Unexpected losses 100 130 120 150 130

Total Selling Expense 2,920 3,250 3,380 3,540 3,670

Net Income44,46

157,87

773,27

180,40

8 93,806


70/89

Jamz Supreme EggsCash flow Statement


Cash flow from operating activities:Net Income 44,461Depreciation 1,195Decrease/Increase in:Accounts Receivable 7,657Stocks and Inventory 0(7,656)Total 38,000Increase/decrease in:Accounts payable 2,000

Net Cash provided by operations 40,000

Cash flow from Investing Activities:Reduction/addition in:Housing and equipment 0

Net Cash provided by investing

Cash flow from financing activities:Capital/Retained earnings 0

Net Cash provided by financing

Net increase in cash 0

Cash Balance, beginning 0

Cash Balance, end 40,000

Jamz Supreme Eggs

70


71/89

71

PROJECTED CASH FLOW

Year

0Year

1Year

2Year

3Year

4Year

5Cash flow from operating

activities:Net Income 0 44,461 57,877 73,271 80,408 93,806Depreciation 0 1,195 1,195 1195 1,195 1,195Decrease/Increase in:

Accounts Receivable 0(7,656

) (2695) (3616) 475 2,496Stocks and Inventory 18,750 0 (2500) (2100) (2100) (2050)Increase/decrease in:Accounts payable 0 2,000 (500) 700 300 200

0

Net Cash provided byoperations

18,750

40,000

53,377

69,450

80,260

95,247

Cash flow from InvestingActivities:Reduction/addition in:Housing and equipment 11,951 0 0 0 0 0Net Cash provided byinvesting

11,951 0 0 0 0 0

Cash flow from financingactivities:Capital/Retained earning 30,701 0 44,461 57,877 73,281 80,408

Net Cash Provided byfinancing

30,701

44,461

57,877

73,281

80,408

Net increase in cash 0 0 8,916 11,573 6,989 14,839Cash Balance, beginning 0 0 40,000 48,916 60,489 67,478

Cash Balance, end 040,00

048,91

660,48

967,47

882,31

7


72/89

Jamz Supreme EggsBalance Sheet


ASSETSCurrent Assets:

Cash 0Accounts Receivable 0Stocks and inventory 18,750 Total Current Assets 18,750

Non-current assets:

Housing 10,651Equipment 1,300Less:

Accumulated Depreciation 0 Total Non Current Assets 11,951

Total Assets 30,701=====

LIABILITIES

Accounts Payable 0

Owners Equity

Jamz, Capital 30,701

Net Income 0

Total Liabilities and Owners Equity 30,701====

72


73/89

Jamz Supreme EggsBalance Sheet


ASSETSCurrent Assets:

Cash 42,604Accounts Receivable 5,052Stocks and inventory 18,750

Total Current Assets 56,802

Non-current assets:

Housing 10,651Less: Accumulated Depreciation 1,065 9,586

Equipment 1,300Less: Accumulated Depreciation 130 1,170

Total Non Current Assets 10,756

TOTAL ASSETS 75,162=====

LIABILITIES

Accounts Payable 2,000

Owners Equity

Jamz, Capital 30,701Net Income 44,461

TOTAL LIABILITIES AND OWNERS EQUITY 77,162=====

73


74/89

Jamz Supreme EggsPROJECTED BALANCE SHEET

Year

0Year

1Year

2 Year 3 Year 4 Year 5ASSETS

Current Assets Cash 0 40,000 48,916 60,489 67,478 82,317Accounts Receivable 0 7,656 10,351 13,967 13,510 11,014Stocks and Inventory 18,750 18,750 21,250 23,350 25,450 27,500Total Current Assets 18,750 66,406 80,517 97,806 106,438 120,831

Non - Current Assets Housing 10,651 10,651 10,651 10,651 10,651 10,651

Less: AccumulatedDepreciation 0 1,065 2,130 3,195 4,260 5,325 Total 9,586 8,521 7,456 6,391 5Equipment 1,300 1,300 1,300 1,300 1,300 1,300

Less: AccumulatedDepreciation 0 130 260 390 520 650 Total 1,170 1,040 910 780Total Non - Current Assets 11,951 10,756 9,561 8,366 7,171 5,976

Total Assets

30,70

1

77,16

2

90,07

8

106,17

2

113,60

9

126,80

7

LIABILITIES

Accounts Payable 0 2,000 1,500 2,200 2,500 2,300

OWNER'S EQUITY

Jamz, Capital 30,701 30,701 30,701 30,701 30,701 30,701

Net Income 0 44,461 57,877 73,271 80,408 93,806

Total Liabilities andOwner's Equity

30,701

77,162

90,078

106,172

113,609

126,807

74


75/89

2. Financial Ratio Analysis

A.Tests of liquidity These measures are used to determine a firms

ability to meet short term obligations, and to remain solvent in the

event of adversities.

Current Assets

Current ratio = ------------------Current Liabilities

66,406 Year 1 = ----------

2,000

= 33.20

80,517 Year 2 = ----------

1,500

= 53.68

97,806 Year 3 = ----------

2,200

= 45.46

106,438 Year 4 = ----------

2,500

= 42.56

120,831 Year 5 = ----------

2,300

= 52.53

75


76/89

B.Test of debt-service - These tests are employed to present the

projects ability to meet long-term obligation.

Total liabilitiesDebt-to-networth ratio = -----------------Total equities

2,000 Year 1 = -----------

75,162

= .026

1,500

Year 2 = -----------88,578

= .017

2,200 Year 3 = -----------

103,972

= .021

2,500 Year 4 = -----------

111,109

= .023

2,300 Year 5 = -----------

124,507

= .018

76


77/89

C.Tests of profitability These show the operational performance

and efficiency of the project.

Net income

1. Net profit margin = ---------------Sales

44,461 Year 1 = ---------------

160,500

= 28%

57,877 Year 2 = ---------------

176,550

= 33%

73,201 Year 3 = ---------------

194,205

= 38%

80,408 Year 4 = ---------------

203,915

= 39%

93,806 Year 5 = ---------------

220,228

= 43%

Net Income2. Return on owners investment = --------------

77


78/89

Stock equity

44,461Year 1 = ---------

30,701

= 149%

57,877Year 2 = ---------

30,701

= 186%

73,201Year 3 = ---------

30,701

= 238%

80,408Year 4 = ---------

30,701

= 262%

93,806Year 5 = ---------

30,701

= 306%

D.Test of operating leverage These functions indicates how the

project employs assets for which it pays a fixed cost.

78


79/89

1. Break-even selling price analysis

Total costBESP = ------------ x Selling price

Sales

114,844

= --------- x 5.00160,500

= 3.58

2. Break-even sales analysis

BES = BESP X Unit Volume

= 3.58 x 3,600

= 12,888

Chapter 5Socio-Economic Study

79


80/89

In terms of employment, the business directly benefits

individuals and families in the society by providing jobs. If the business

become more successful and make some expansions in the future

operation, it can help those unemployed citizens because the business

will need more manpower. Indirectly, the entire economy may be

benefited. More income in the hands of the people would mean greater

demand for other goods. This additional demand may in turn, stimulate

the production of more of the other goods.

It also helps the municipality in terms of taxes and fees collected

from the business. The firm also aims to help in some community

development projects.

Eggs are one of the basic commodities that every household

used. In other way, the business help lowered the prices this means

another supplier of the certain commodity because if the supply is high

the prices are low.

Chapter 6

80


81/89

Management Study

1. Basic Consideration

A. MANAGEMENT OF THE LAYER FARM

The success of the egg-production business greatly depends on

successful management of the layer farm. Each factor below

contributes to the success of the business.

1. Housing and Equipment

Poultry housing and equipment can be as simple as a shed roof

with chicken water fountains and hand-filled feeders to an

environmentally controlled fully automated cage layer house. Make

sure that the birds are given adequate floor space. A maximum of

three birds per half square meter is ideal one. Keep the housing and

equipment always clean.

2. Lighting, heating and ventilation

Heat stress is one of the major risk factors that one must

consider in layer farm management. The ideal temperature for laying

hens is between 18 degrees and 29 degrees Celsius.

Air movement around birds at floor level has a beneficial cooling

effect. In shade houses, take full advantage of natural breezes using

81


82/89

paddles or circulating fans in periods of still weather and particularly

during the heat of the day. In controlled environment houses, use

inlets with moveable louvers which can direct moving air directly on to

the birds at floor level.

3. Rearing equipment

Poultry housing should provide clean, dry, comfortable quarters

for birds throughout the year.

To brood chicks, you need adequate heat and space. The house

and equipment should be clean and in good repair.

Set up and warm the brooding area before the chicks arrive.

Chicks will need a warm, draft-free location with proper ventilation and

access to clean water, appropriate feed and protection.

The normal brooding period, when heat is required, is from the

time chicks hatch until they are about six weeks old. Chicks may be

brooded many places on the farm. The main requirements are

adequate space, a reliable source of heat and proper ventilation.

A brooder house measuring 10 by 12 feet will take care of 120

chicks to eight weeks of age. The feeders are placed in a spoke like

arrangement radiating outward from underneath the outer portion of

82


83/89

the brooder canopy. This provides chicks access to feed and allows

them to move freely in and out from the heat source.

4. Feeding equipment

The mechanics of feeding are nearly as important as the feed

itself. Supply enough feeder space so that all the birds can eat at the

same time. When space is limited, some birds dont get enough to eat.

Keep feed available for the birds constantly. Meal feeding (giving a

limited amount of feed several times each day) can reduce productivity

if not managed carefully.

Place feeders so the trough is at the level of the birds backs.

This practice reduces feed spillage, which encourages rodents, wastes

feed, and costs money.

5. Watering equipment

The distribution of waterers should be such as to minimize the

distance any bird has to move in order to drink; ideally, both feed and

water should be distributed so that no bird has to move more than 1

1/2 meters to get its requirements.

Whenever possible, use a water supply such as well which provides

cool water. Bury or insulate water pipes to maintain the original

coolness. Additionally, supply troughs in which breeders may dip their

combs and wattles so that evaporation of water cools the blood supply

83


84/89

in the combs and wattles. In extremely hot weather, do not place drugs

or other substances in the water which might decrease its palatability.

6. Dead bird disposal

Disposal of dead birds on the farm continues to be a challenge

from the standpoints of cost, environmental safety, biosecurity and

practicality. While we, hopefully, have to deal with only a relatively

small amount each day, disposal or preservation must also occur daily

in order to meet the above challenges.

Burial has been the method of choice for years because of its low cost

and convenience. A deep pit with inside framing and a tight-fitting

cover can be constructed.

Incineration is probably the most biologically safe method of

disposal. It creates only a small amount of benign waste that can be

easily disposed of and does not attract pests. It is also a serviceable

option where a high water table or soil type precludes excavation.

84


85/89

7. Biosecurity

As a bird owner, keeping birds healthy is a top priority. Your birds

can become sick or die from exposure to just a few unseen bacteria,

viruses, or parasites. In a single day, these germs can multiply and

infect all your birds. However, by practicing biosecurity, you can keep

your birds healthy.

Restrict access to your property and your birds. Consider fencing

off the area where your birds are to form a barrier between clean

and dirty areas. The clean area is the immediate area surrounding

your birds, and the dirty or buffer area must be considered to be

infected with germs, even if the birds appear healthy and disease free.

Allow only people who take care of your birds to come into contact with

them.

Keep cages, food, and water clean on a daily basis. Clean and

disinfect equipment that comes in contact with your birds or their

droppings. That includes tools such as feed scoops, shovels, rakes, and

brooms. All manure must be removed before disinfectant can work so

clean surfaces with soap and water first. Properly dispose of dead birds

by burial or incineration or take them to a landfill.

85


86/89

B. FLOCK CARE AND MANAGEMENT

1. Chick quality

Healthy flocks start from healthy stocks. So from the start,

choose only healthy chicks for the farm. Do not acquire chicks that

have wet vents and dull eyes. Characteristics of healthy chicks are dry,

fluffy feathers, bright eyes and alert and active appearance.

2. Rearing

Sufficient heat should be provided to keep day-old chicks warm

during the day or night. Abrupt changes in brooder temperature should

be avoided during the first two weeks.

Provide adequate space for chicks as they grow. Overcrowding is

one of the factors affecting poor growth. Also provide a good light

source, as a well-lighted brooder encourages chicks to start feeding.

Also prove good ventilation for chicks to avoid future respiratory

diseases. Egg-type chicks should be transferred from the brooding

house to the grower pens at six to eight weeks old. They are then

transferred to the laying house when they reach the age 16 to 18

weeks old or three weeks before they lay eggs.

Make sure to provide anti-stress drugs, vitamins and minerals to

the birds two to five days before and after their transfer. Also make

86


87/89

sure the bird houses are thoroughly cleaned before the birds are

transferred.

The head should be moderately long and well-filled in forward to

the eyes to avoid a crow-headed appearance. The face should be

clean-cut, smooth and free from wrinkles. The comb should be large

and bright red in color. The eyes should be large, bright, and

prominent.

The pullet should be fully feathered with plumage of good

quality. Shanks should show a good healthy color, but place no

emphasis on color intensity with birds of this age. Feet and toes should

be completely normal and the bird should be well balanced on her

legs.

The body should be deep, broad, and well developed, with a

heart girth of ample circumference. The keel should be of good length

and the back should be relatively long, broad, and flat.

87


88/89

3. Sanitation and waste management

Maintain only a very shallow layer of litter on concrete floors.

This will maximize any cooling effect which the concrete floor may

have on the birds through absorption of body heat. Dry, dusty litter can

cause severe irritation and damage to the eyes of chickens. Avoid

dustiness by sprinkling water generously on litter at regular intervals.

This spraying can, during extremely hot, dry spells, be advantageously

extended to the birds themselves and the feed.

Vaccinations and control of common pests and diseases many

bird diseases can be difficult to diagnose. The list below includes some

of the things to look for that signal something might be wrong with

your birds. Early detection of signs is very important to prevent the

spread of disease.

Watch out for the following signs of disease:

Sudden increase in bird deaths in your flock

Sneezing, gasping for air, coughing, and nasal discharge

Watery and green diarrhea

Lack of energy and poor appetite

Drop in egg production or soft- or thin-shelled misshapen eggs

Swelling around the eyes, neck, and head

88


89/89

Purple discoloration of the wattles, combs, and legs (Al)

Tremors, drooping wings, circling, twisting of the head and neck, or

lack of movement.

Proper handling of vaccines should be practiced. The quality of a

vaccine cannot be guaranteed if the product is mishandled or

improperly used after it leaves the manufacturing plant. All vaccines

are labeled with instructions for use and dates of expiration.

Selling directly to local shops, institutions and businesses like

restaurants, schools and hospitals would require a prior agreement and

contract. The owner should be able to meet the quantity and quality

demand of the customer organization.

2. Form of ownership

The form of ownership is single proprietorship because it is solely

owned by one person. This proposed feasibility study is owned by Mr.

jamz,janeo fs

Documents