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Transcript of Feasibility Study
Feedmill FEASIBILITY STUDY SUMMARY OF THE PROJECT Central Philippine University- College of Agriculture, Resources, and Environmental Sciences Proponent: Project: Central Philippine University Feedmill Location: Sitio Buntalan, Brgy. Poblacion, Leon, Iloilo Brief Description of the Project: This is a study of the viability of organic chicken feeds specially formulated for free-range native chickens. The feeds are made from purely natural ingredients consisting of rice hull, corn kernels, oyster shells, and plant leaves. The product includes starter, grower, and breeder pellets. Aside from this proposed product, there are no other available organic feeds that cater specifically to the needs of native chickens. The study focuses on the demand for this product in Region VI.
This product is jointly funded by Central Philippine University (CPU) in collaboration with the Department of Science and Technology – Philippine Council for Agriculture, Forestry, and Natural Resources Research and Development (DOST-PCARRD). OBJECTIVES OF THE PROJECT • The business aimed to develop technologies that will boost production and stimulate the supply chain of native chicken industry in the region toward commercialization.
• Formulate and distribute feeds for Darag/Native/Traditional chickens using locally available feedstuffs at a minimum price affordable to the chicken raisers.
• To distribute the pelleted feeds to different pilot research station for Darag chicken in Western Visayas. Market Feasibility Feed is one of the most critical inputs to the livestock and poultry industries in the Philippines. It represents roughly 60 percent of the total cost to produce poultry meat and eggs. Because of the critical role of feeds to these industries, feed milling has evolved into a multi-billion-peso support industry to animal production. One of its biggest clients, however, is the poultry industry. In this premise, the main target of the business is native chicken raisers whether engaged in poultry business or just simple backyard raisers.
The competitors of the feed mill will be the commercial ones that are producing different kinds of feeds; one of these is Philippine Foremost Milling Corporation which is located here in Iloilo. However, the competitors are considered as a limited threat because the feeds in this study is one formulated solely for traditional chickens and also because of the huge difference in price. Technical Feasibility Financial Feasibility Under the two cases considered with different numbers of chickens, 686 native chicken breeders has the net present value of –Php136,824.42 while that of 1143 chickens is Php 96,274.33. The first case yields an internal rate of return of 4% with a payback period of 4.18 years while the second is 15% which is higher than the required rate of return and has a payback period of 3.25 years. This means that this project is feasible as long as the market is higher than a thousand of native chicken breeders. Central Philippine University Feedmill will create employment, improve quality of life, contribute to a more equitable distribution of income, utilize resources, and bring social benefits. The social aspects involved in this business are composed of customers, farmer/suppliers, employees, the government and other private agencies that may be associated with it. Socio-Economic Desirability
This project has four permanent personnel:
1. Project leader – responsible for the technical and oversee the operation of the research station
2. Project staff- assists the Project leader as to the flow of operation in the project
3. Research assistant- implements the project methodologies for village level feed mill operation and monitor the performances of free-range native chicken fed with formulated and pelletized ration
4. Laborer- does the processing of supplemental feeds. He is responsible for the sun-drying of raw-materials and hauling of feedstuffs and finished products.
Additional laborers may be required as the need arises. Laborers will vary from two to four individuals depending on the demand of supplemental feeds. Management Socio-Economic Central Philippine University will be located in Sitio Buntalan, Brgy. Poblacion, Leon, Iloilo City. The place is 82 meters above sea level and is 40 meters away from the road shoulder of national highway. The total area requirement of the feed mill will be 897 square meters. The feed mill facility will include a stock room, a pelleting and milling area, a flat-bed dryer and an area for. The equipments to be used in the plant will include; a shredder-hammer mill, a feed mixer, a pellet mill, a crumbling machine, a bran mill and a flat-bed dryer. The total cost for the project is Php 741,509.20; this is broken down into Php 406,509.20 for building and facilities, Php 235,000.00 for equipment and Php 100,000.00 for construction of Feeding Trial Area Improvement.