A Feasibility Study of Establishing a Native Chicken Farm in Brgy. Ulango, Calamba City, Laguna

Date

4-2012

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jimmy B. Williams

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Abstract

With the fast changing environment, people are becoming more conscious with their health thus increasing the demand for healthier and safer foods. Native chicken have been regarded by many as close to being organic if not already considered 100% organic since it is raised using the free range system. Also, with its unique taste and flavor, it is preferred by most of the Filipinos.

The study was conducted to determine the feasibility of establishing a native chicken farm in Brgy. Ulango, Calamba, Laguna. Specifically, the project aimed to present the native chicken farm and its planned area of operation, determine the market, production, organizational and financial viability of operating the native chicken farm, identify potential risks and problems in venturing into the business and, recommend specific courses of action based on the findings of the study.

The project’s economic life is five years. The farm will be situated in Brgy. Ulango, Calamba, Laguna. A two hectare land will be utilized for the project. The farm will produce one product which is the live native chicken. The farm will supply two native chicken vendors in Tanauan Public Market. The total production of the farm for the first year of operation is 9600 heads of native chicken.

The project was evaluated using financial instruments such as Net Present value (NPV), Internal Rate of Return (IRR) and payback period. The results of the evaluation revealed that the business is financially feasible. The NPVs of the different scenarios are positive and the IRRs are higher than the required cost of capital. Also, the payback periods of the different scenarios are less than three years which means that the investment can be recaptured in less than three years. Note that the assumptions included in the evaluation of this aspect are very conservative. All of the price increase was based on appropriate inflation rates throughout the business life. Realistic estimates of the costs and benefits yields to positive results leading to a conclusion that the project if financially feasible. Based on the results of the evaluation of the different business functions, it can be concluded that the establishment of a native chicken farm in Brgy. Ulango, Calamba, Laguna is feasible.

Language

English

LC Subject

Chicken industry, Poultry farms

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2012 M17 O78

Notes

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Document Type

Thesis

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