A Case Study on Harimanok Breeding Farm in Alfonso, Cavite

Date

4-2010

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jeanette Angeline B. Madamba

Committee Member

Jimmy B. Williams, Tricia C. Ascan, Reynaldo L. Tan

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Abstract

The case study was conducted in Harimanok Farm located in Barangay Kaytitinga II, Alfonso, Cavite. The owner, Mr. Steven Vera Sr. has been engaged in the poultry farming business for eighteen years already. The farm is into the contract broiler breeding business. At present, the farm’s integrator is Don Gallo, Inc (DGI).

The main objective of the study was to evaluate the operations and performance of Harimanok Farm. Specifically, the study aimed to: present and discuss a noteworthy farm issue; evaluate the farm’s environment; evaluate the farm in terms of its main business functions; define the problem relevant to the business issue identified; generate, evaluate and identify the best solution and design an implementation plan for this chosen solution.

Primary data were gathered from interviews conducted with the general manager, farm manager and workers in the farm. Other supplementary information were taken from personal observations of the farm’s activities and surroundings. Secondary data were obtained from books, publications, and from different government agencies like Department of Environment and Natural Resources (DENR), Bureau of Animal Industry (BAI) and Bureau of Agricultural Statistics (BAS), among others.

Primary data were gathered from interviews conducted with the general manager, farm manager and workers in the farm. Other supplementary information were taken from personal observations of the farm’s activities and surroundings. Secondary data were obtained from books, publications, and from different government agencies like Department of Environment and Natural Resources (DENR), Bureau of Animal Industry (BAI) and Bureau of Agricultural Statistics (BAS), among others.

Chicken meat is one of the most popular meat not only in the Philippines, but in the whole world. In line with the increasing population in our country, the demand for chicken meat also increases. In fact, it has the biggest annual growth rate in terms of per capita consumption of meat products (versus pork and beef). Poultry business is profitable during this time, but a grower/breeder must be sure of his market first since the competition is intense (local production and importation). Harimanok Farm is a contract breeder under its integrator – Don Gallo, Inc. Because of this, the management do not see anyone as a competitor since their income is assured.

The contract broiler breeding scheme in our country can be said to be in its growing stage. Since most big companies engaged in the poultry industry need to increase their production for local consumption as well as for exportation, they tend to find breeders who can grow chickens for them. Through this, both the integrator and the breeder share benefits with each other.

There is nothing much in the marketing aspect of the farm since they are not the ones to market the chickens they raise and the eggs they produce. They are just being paid for the “boarding” fee, which also serves as the breeding fee, and the eggs that they produce. The operation aspect of the farm is generally good. There are specific standards that DGI requires them to attain which they achieve most of the time. Being at par with the standards does not really make the general manager happy since for them to become the best breeder, they have to perform well above the standards set forth. In terms of the organization aspect, the farm currently does not have any strict method of hiring employees which leads to some problems. Generally, the workers are all well paid and well compensated.

For the past five years under the integrator DGI, the farm’s total assets has been increasing. The gross income, on the other hand, has been fluctuating although this may also be attributed to the varying start and end of each cycle (since it lasts for a total of 68 weeks or 1 year and 5 months). It is also evident that the operational expenses increase every year thus decreasing the net income of the farm.

The factors that had been found to have affected the whole operation of the farm were within the operation/production, personnel and integrator aspects. One of the main goals of the farm is to become the Breeder of the Year once again, but problems such as having stubborn and uncooperative workers, inefficient and old equipment, tools and structures and occasional inconsistent technical assistance and support of the integrator hinder Harimanok Farm from reaching this goal.

The problem statement is: how can Harimanok Farm increase its profitability despite the problem of ever increasing operating expenses; and productivity in terms of producing better and more quality chickens and hatchable eggs?

Three alternative solutions were generated and these were: 1) hire new workers and upgrade the poultry houses; 2) set-up another breeding farm (with 70k+ capacity); and 3) intensify and improve the management and the implementation of rules, hire own veterinarian, use biogas and expand another 20,000 – 30,000 head capacity.

Using the criteria of profitability, cost of implementation, degree of risk and ease of implementation, it is recommended that the owner implements the third alternative. The strict implementation and improvement in the performance of workers should be practiced throughout the whole operation. Workers should also be given bonuses and salary increase. The hiring procedure should also be stricter and a farm’s own veterinarian should be hired. The replacement of old equipment and tools and the use of biogas can be done gradually during the start of the cycle. The construction of the farm expansion should be done as soon as possible so that it will be operational at the start of the next cycle.

Language

English

LC Subject

Poultry farm, Chicken breeders, Poultry industry

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2010 M17 P37

Notes

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Document Type

Thesis

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