A case study of a vertically integrated poultry layer farm: CONPAC Agro Enterprises, Incorporated

Date

2003

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Reynaldo L. Tan

Abstract

The case study was conducted at the CONPAC AGRO ENTERPRISES INCORPORATED located in Barangay Pansol, Pila Laguna, owned by spouses Conrado and Pacita Malixi, and currently managed by their son Michael Malixi. The farm is a poultry layer integrator, run its own feed mill and markets its own products in Laguna and Manila area. It has four separate farms sites for its brooding-growing and laying operations, namely: Pansol, Dingin, Sibulan 1, and Sibulan 2. The main objective of the study is to analyze the management and operations of the poultry grower and layer farm of CONPAC AGRO ENTERPRISE INCORPORATED. Specifically, the study aims to: review the Philippine table eggs industry; assess the practices of the firm in terms of the functional areas; production and operations management, organizational and personnel management, marketing aspect, and financial aspect; identify problems besetting the firm; to formulate appropriate solutions to the problems; and to recommend necessary strategies beneficial for the firm. Primary data were gathered mostly through interviews with the farm owner, the production manager, sales manager, veterinarian, and other personnel involved in the farm. Other supplementary information was drawn from personal observations of the farm's operations. Secondary data were obtained from publications, hand outs, and technical paper issued by the Bureau of Agricultural Statistics (BAS), Department of Agriculture (DA), Livestock Development council (LDC), University of Asia and the Pacific (UA&P), and other related agencies. The problems identified were the untimely collection of manure, shortage of egg trays; status of the current prices of table eggs in the market; lack of proper standardization of sizing of eggs; lack of proper system of disposing of the eggs; lack of proper allocation of the expenses for each of the divisions; and lack of separate accounting on the expenses involved in the four farm sites. SWOT analysis was performed to come up with recommendations related to the problems identified. The recommendations were: to maximize full capacity of the farm and improve production efficiency; the firm should invest in market intelligence and development; the firm should review reward system and relationship between superior and subordinates; and the firm should improve its financial records. The significance of the benefits and costs of vertical integration of the firm can be assessed directly in economic terms and indirectly through its effect on the business. To reduce the cost of purchasing feeds and coconut oil, the firm invested in feed mill and oil mill to be able to produce the feed inputs by themselves. As a result, it increased the profitability of doing poultry business as a whole.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

LG 993 2003 M17 A88

Document Type

Thesis

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