Comparative business analysis of independent and contract growing of Laguna ducks in Ifugao

Date

1996

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Divinagracia, Louie A.

Abstract

Ducks rank second to chicken in the production of eggs and meat. they are considered as an alternative source of protein aside from chicken. In 1991, a new type of cross-breed broiler duck was developed. Their meat type breed is a triple cross among Mallard, Pekin, and Muscovy ducks. Eventually, the triple cross-breed was called the Laguna Duck. The chinese community is being considered as the potential target market. However, they still prefer the imported ducks because of their perception that locally produced ducks have low quality. The province of Ifugao is a duck-eating community. The acquired duck meat either of the market or from the market or from their backyards. Still, the supply for duck meat is still lower than the demand. The viability of establishing a Laguna Duck farm in Ifugao using two growing schemes was explored. These two schemes are the independent growing scheme and the contract growing scheme. Data gathering included researches from the different government institutions, interviews with the developers of the Laguna Duck technology and students from Ifugao who are studying at UP Los Baños. The study was evaluated in terms of the technical market, and financial aspects. Considering the climate, sufficient water supply, hardiness of ducks and the case of managing them, the project is technically feasible in the area. The high demand for duck meat, yet low supply for such indicates the viability of the market aspect of the business venture. The supply of demand gap in ifugao is 360,414 head in one year. Investment requirement under the independent growing scheme is P2,082,624. On the other hand, investment cost from the point of view of the integrator and the contract grower are P1.110,214 and P418,370, respectively. The cost producing one duck from the independent growing scheme and the contract growing scheme are P102.00 and P112.00, respectively. The NPV from the point of view of the independent grower is P5,826,776; the IRR is 71%. From the point of view of the integrator. The NPV is P3,761,219.59 and the IRR is 86%. On the other hand, the NPV from the point of view of the grower is P506,679,26 and the IRR is 28%. the result of the financial analysis showed that the two schemes are financially viable but due to socio-economic considerations, independent growing is recommended. The Laguna Duck venture in Ifugao will benefit the province. Aside from adding up to the source of income of the inhabitants, the province of Ifugao will eventually begin to be self-sufficient on ducks.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

LG 993 1996 M17 A87

Document Type

Thesis

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