PROJECT STUDY

ON

NATIVE CHICKEN
( free-range SASSO)
 EXECUTIVE SUMMARY

PROJECT TITLE : Native Chicken Production

PROPONENT : Mr. Louger Martinez

LOCATION : Bgry. B. Titong, Masbate City

PROJECT COST : P 1,500,000.00

SUMMARY OF THE PROJECT

The native chicken production project using sasso breed is located at

B. Titong, Masbate City. The proponent will fully develop a semi intensive kind
of raising chicken.

Selection Avicole de la Sarthe et du SudQuest or commonly known as

SASSO is a poultry breeding company based in France, which specializes in
colored poultry strains selected from over 30 years of breeding experience.

The Teresa Farm of Mr. Antonio Innocencio in Rizal pioneered of

importing some hatching eggs of SASSO of France and have adopted the strict
standards of LABEL ROUGE in growing the birds. They had already brought in
Parent Stocks of the SASSO breeders in the country, to help produce Island-born
stocks of the free-range raisers.

Native chicken raising is classified as one of the High - Yielding and

Profitable business. Either it will be introduced to raisers and growers in
Extensive or Semi intensive way of culturing. Allowing the birds to roam around
the backyard is a free-range type of poultry raising.

The project has a total capitalization of Php 1,500,000.00. The owners

equity is Php 200,000.00 while the remaining balance Php 1,300,000.00 will
represent as loan.

The Return on Investment of the project based on Net Income is 16.42%,

which is acceptable since it is greater than the rate of 12.75% p.a. of the GFI.
 MARKET STUDY

A. PRODUCT PROFILE

native chicken

The SASSO native chicken is grown in a traditional free-range type

which is different from the industrial or factory-white chicken not only in
appearance but in texture of its meat and in taste.

Within 30 days after its hatched, it is estimated that the bird is to

weigh at around 1.75 kg.

B. THE MARKET

B.1. WORLD DEMAND

 B.2. PRIMARY MARKET

The country has experienced an impressive growth for the poultry

industry, for the past three (3) decades. From the meager 50 million birds
annually to 430 million birds by 1999.

As per A.P. Innocencio Farms (Teresa Farms) study in the

development of Village- Level Poultry Enterprises , in the countryside, the
demand for poultry is highest.

SELECTED CITY
VOLUME/DAY PRICE /HEAD
MARKETS
Iloilo City 2,000 P 120
Bacolod City 1,500 P 100 120
Dumaguete City 1,200 P 120
Cebu City 2,500 P 120 150
Dipolog City 1,000 P 120
Cagayan de Oro City 1,500 P 100 120
Davao City 2,000 P 100 120
Tagbilaran City 500 P 120
Cotabato City 1,000 P 100 120
Urdaneta City 1,000 P 120 150
Baguio City 1,000 P 150 250
Naga City 1,000 P 120 150
Lucena City 800 P 120
Source: Management Guide SASSO Free-range Colored Chicken

Masbate City and Legazpi City are considered as promising markets

for native chicken.

B.3 SUPPLY

VOLUME AND VALUE OF PRODUCTION, 2003 2004

2003 2004
COMMODITY VOLUME VALUE VOLUME VALUE
(HEADS) (PESOS) (heads) (PESOS)

LIVE CHICKEN 4,536 1,349,460.00 4,536 1,428,840.00

The production capacity is maintained with a 5% rate increase on

the price per annum.
 B.4 SUPPLY CAPACITY

The produce within 150 days after hatched through incubator

having 700 hens wherein 90% mother birds are to lay eggs. The 630 hens
will have an average of 15 pcs. eggs at 20% mortality will then hatch
7,560 chicks.

The survival rate of chicks is assumed at 60% or 4, 546 chicks until

reaching its marketable size.

C. MARKETING STRATEGY

C.1. Channel of Distribution:

The chicken/birds to be produced by the project will be

supplied to local buyers and to other Cities near the province. The
existing lechon manok stores will also be tapped and offered.
Supermarket and wet markets as well in the City of Masbate will be
considered and prioritized for marketing.

The company will initially sell the products while it is launch

in the market and to the end-consumer. Dealership will be taken
into consideration at the stage of establishment of the product.

E.2. Pricing and Terms of Sales

The selling price of a native chicken will be fixed at the

prevailing wholesale price. The current price of chicken is P 85 per
kilo.

E.3. Promotions

The chicken will be delivered from the farm to the market.

However, if the buyer/s will buy and pick up from the poultry farm,
a P5.00 per bird will be lessened.

TECHNICAL ASPECT
A. PRODUCT DESCRIPTION

The term SASSO which is taken from the acronym Selection Avicole de
la Sarthe et du Sudquest, is a poultry breeding company based in FRANCE,
which specializes in colored poultry strains selected from over 30 years of
breeding experience. The emphasis of SASSO breeds is to provide quality
chicken different from the industrial or factory-white chicken.

In the Philippines, the farm of A.P. Innocencio / Teresa Farm was the
first to introduce the Native Chicken Raising using SASSO in mid 1997. They
experimented on the potential of growing the free-range chickens from
FRANCE. Initially, they imported some hatching eggs from SASSO of FRANCE
and have adopted the strict standards of LABEL ROUGE in growing the birds.
Currently, they had already brought in Parent Stocks of the SASSO breeders
in the country.

The project will raise 700 heads of high breed SASSO hens and 100
heads high breed roosters.

B. MANAGEMENT OF LAYING FLOCKS (including roosters)

The starting period represents the most important part, to succeed

with the laying flock. First and foremost, is to take all necessary bio-security
measures in preparation of the house and gazing sites. It is better to rear
birds on all-in/all-out system to avoid any major disease outbreak or high
mortality. It is also best to limit the access of visitors and personnel in the
poultry areas so as not to be a vector fro contamination.

B.1 HOUSING THE LAYERS

The purchased healthy hens will be put to the laying house.

Healthy hens have the characteristics of well developed bodies and
exhibit deep yellow pigmented beaks and shanks to have a high
productive performance.

B.2. FEEDING THE FLOCKS

The bird should be given a layer mash with a protein content of

at least 16 to 18 percent. The other nutrient requirements of laying
hens are given with the following:

Metabolized energy (k cal/kg) - 2850

 Protein (percent) - 16
Lysine (percent) - 0.5
Methionine (percent) - 0.5
or
Methionine (percent) - 0.28
Cystine (percent) - 0.25
Minerals
Calcium (percent) - 2.75
Phophorus (percent) - 0.6

The best way to feed the birds are all mash system since it is
cheaper and more readily available of the feed dealers in the strategic
places in the province.

The daily water consumption of laying hens is 5 7 gallons at

moderate temperature.

B. 3. LIGHT MANAGEMENT OF LAYERS

In the farm, economically it will provide artificial light to layers,

14 to 16 hours daylength is recommended. A 50 watts incandescent
bulb for every 25 sq m floor space is recommended. The height of the
light bulb should be 2.4 to 2.7 m (8 to 9 ft.) from the floor.

Normally, it is more profitable to keep layers for only the first laying year.
However, the laying period maybe extended for another year if birds are
force molted. Otherwise, the whole flock must be replaced.

C. MANAGEMENT OF DAY-OLD CHICKS

C.1. HOUSE PREPARATION

Bio-Security is a must. Since the day-old chicks are very

sensitive to surrounding bacterial contamination, it is best to
decrease the challenge by thorough cleaning and disinfection of
house and all equipments.

SCHEDULE OF HOUSE PREPARATION

 Day 0 Insectide Treatment
Day 1 Taking out equipment
Day 2 Cleaning and Drying
Equipment soaking
Disinfection
Day 3 Repairing House
Cleaning & Drying of Equipment
Day 4 Installation of equipment
Day 5 Disinfection
Day 6 House Surroundings cleaning and disinfection
Day 7 Heat the chicks in the house

SPACE REQUIREMENTS FOR THE BROODING HOUSE

CUPS/FOUNTS
AGE FLOOR SPACE FEEDER SPACE
Per 1000 birds
Heater area
From Day 1 1 feeder tray/100
5 sq.ft./100 8-10 cups/1000
to Day 7 (feed little but often)
chicks
From Wk. 1 0.2 sq.ft./bird 2 in/bird or
20-25 cups/1000
to Wk. 10 1.0 sq.ft./bird 1 feeder/25-30 birds

D. BROODING

It is very necessary during the first few days of the brooding period
that all environment conditions, would promote the well being of the
young birds.

The day-old chicks, are quite fragile creatures and are in a way
quite dependent on the poultry-raisers, for its survival. The very thin down
feathers are not adequate for the birds to regulate its body temperature,
or protect itself from extremes of temperature. Its body surface is at a
maximum ration compared to its body weight, making it difficult for the
birds to control its body temperature.

The success in the brooding period will determine the success of

the young flock. During the first 8 10 days, the chicks are not able to
control their body temperature. The birds must be protected from
extremes of hot and cold conditions. It is best to maintain a balance on
the desired brooding temperature for the birds.

TEMPERATURE NORMS DURING THE BROODING PERIOD

 HEATING BY BROODER SPACE HEATING
Age in days To at the edge of To in the living To in the living
the brooder area area
0-3 38 C
o
> 28oC 31 33oC
3-7 35 C
o
28oC 31 32oC
7 - 14 32oC 28oC 29 31oC
14 - 21 29oC 28oC 28 29oC
21 - 28 22 - 28oC 22 28oC
28 - 35 20 - 22oC 21 22oC
35 - 42 18 - 23oC 18 21oC
17 - 21oC

To check the brooding conditions your could observe the chicks

behaviour under the heaters: it will show the necessary changes needed in
their environment to improve the comfort. Day by day, it is necessary to
control temperature differences: it cannot be over 6 oC. Feeders and drinker
have to be put around the heaters, not too close, or not too far to affect the
chicks. Their number should follow the rules mentioned previously and it is
necessary to place them in alternate fashionto encourage feed and water
consumption. Chicks should have eaten and drunk before they could face
pathological problems.

The litter is made with rice hull, wood shavings or straw (it is better
to chop it to increase the absorbing potential). Moreover, it has tobe leveled
to avoid excessive stress on day-old chicks.

The heater or brooders, have to be lighted at least 2 hours before

the chicks be put. Thermometers in different parts of the building could be
used to control the temperature.

POINTS TO BE CONTROLLED

Day 1 - Chicks control at the arrival

- Behaviour control
- Checking legs temperature and crop 1 hour after it
is hatched
- Feed and water at will
- Visit 4, 8 and 16 hours later

Day 2 - Chicks observation cartons removed out, egg trays

- Turned over, drinkers adjusted, feed changes
- Drinkers cleaning and disinfections corpes collected

Day 3 & 4 - Guards moved away, lightening time and intensity

 Reduced
- Drinkers and feeders moved away, egg trays placed
under feeders
- House ventilation starts
- Manure control

Day 5 - Temperature reduced

- minidrinkers removed
- adjust drinkers height
- chicks behaviour controlled
- prevent any feed or water waste

In the following days, step by step starting equipment is replaced by adult

one

E. CHICK WELL BEING

Some important points to consider in ensuring the well-being of the

chicks:
1. Humidity
2. Draft
3. Litter
4. Adequate Lighting

F. DRINKING AND FEEDING

The water consumption of the birds must be considered on a day

to day basis, mainly to avoid wastage (especially if under medication)
and to avoid excessive humidity inside the house.

VOLUME PER 000 BIRDS

AGE WATERING FEEDS

ALW
Gallon / 000 / change Bags / 000 / day
1 1.00 0.15
2 2.00 0.20
3 2.00 0.25
4 3.00 0.30
5 3.00 0.30
6 4.00 0.35
7 4.00 90.00 0.40
8 4.00 0.40
9 5.00 0.45
AGE WATERING ALW FEEDS
 Gallon / 000 / change Bags / 000 / day
10 5.00 0.50
11 5.00 0.50
12 5.00 0.60
13 6.00 0.65
14 6.00 160.00 0.70
15 7.00 0.75
16 7.00 0.75
17 7.00 0.80
18 8.00 0.80
19 8.00 0.85
20 8.00 0.85
21 10.00 300.00 0.90
22 10.00 0.90
23 10.00 0.95
24 12.00 0.95
25 12.00 1.00
26 12.00 1.00
27 15.00 1.00
28 15.00 500.00 1.10
29 15.00 1.10
30 20.00 1.15
31 20.00 1.20
32 20.00 1.20
33 20.00 1.25
34 20.00 1.25
35 20.00 700.00 1.30
36 20.00 1.35
37 25.00 1.40
38 25.00 1.40
39 25.00 1.50
40 25.00 1.50
41 1.60
42 940.00 1.60
43 1.60
44 1.65
45 1.65
46 1.65
47 1.65
48 1.70
49 1,190.00 1.70
50 30.00 1.75
51 1.80
 52 1.90
53 1.90
54 2.00
55 2.10
56 2.10
57 2.10
58 2.15
59 2.15
60 2.20
61 2.20
62 35.00 2.25
63 1,700 1,800 2.25
64 2.30
65 2.30
66 2.40
67 2.40
68 2.50
69 2.50
70 2.50
71 2.60
72 2.60

Feeding is the most essential for the growth of the birds from day
(1) one until harvest. It is best that there is adequate amount of feeds
given the birds on their day to day requirements.

To condition the birds to easily find their feeds on the first day, it is
advisable to use egg-trays, newspapers, or flat feeding trays. By the
second day it is easy to introduce the chick-feeders for the birds.

It is advisable to put feeds into feeders 3 to 4 times daily to

encourage the birds to eat and minimize wastage. Never throw stale or
rancid feeds into the litter, for this will cause more problems for the birds.

Ensure that the quality feeds should be given to the birds to avoid
nutritional problems.

G. HOUSE EQUIPMENT REQUIREMENT

 Area - 10 birds/m2 (growing)
Brooder - 2
Drinkers - 10 galloners (1-7 days old)
- 30 galloners (8-21 days old)
- 40-50 basins (growing)
Feeders - 10 feeders (1-7 days old)
- 30 feeders (8-21 days old)
- 40-50 basins (growing)
Litter - 4 inches (starting)
- 10 birds/m2 (growing)
Lighting - 24 hrs 16 hrs (starting)
- 10 birds/m2 (growing)

H. FEEDING FORMULAS

It is necessary to feed them with good quality ration (high

levels of protein and energy).

There are two (2) types of formulas: starting during the first
5 weeks of growth until the slaughter age. Metabolizable energy
has to be decreased during summer.

Starting Growth
0 35 days 35 days slaughter
Metabolizable Energy kcal 3050 -3100 3100-3150
Dry, Material, % 87-88 87-88
Crude Protein, % 22-24 20-22
Crude Fat, % 4-4.5 4-4.5
Cellulosis, % 3-3.5 3-3.5
Starch, % 40-45 40-45
Calcium, % 1.05-1.1 1-1.1
Phosphorus, % 0.7-0.75 0.6-0.65
Available Phosphorus, % 0.35-0.40 0.3-0.35
Lysine, % 1.2 1.15
Methione, % 0.58 0.56
Methione + Csteine, % 1-1.05 0.9-0.95

To get the best quality meat, it is necessary to decrease the growth with a
lower protein and energy level feed.

I. DISEASES AND INNOVATIVE CURES

 Use herbal and natural products to prevent or cure diseases.
It has been proven of its effectiveness in treating certain specific
diseases in animals, it is cost-effective and quite available in their
backyards.

1. Chili used to treat respiratory problems

- appetite stimulant especially during heat
stress
- dewormers
2. Oregano - used treat respiratory rales
- used to prevent and cure white diarrhea
- used for coccidiosis
3. Paminta - used to treat fowl pox
4. Sibuyas - used as antibacterial
5. Luya - used as antibacterial
6. Damong Maria used to treat malaria
7. Ipil-ipil - used as a dewormer

J. PROJECT LOCATION

The proponent owned a land for the proposed project site, which
will be in Brgy. B. Titong, Masbate City. The site is located at around 100
meters from the seashore.

The location need not much improvement since it was used with
the same project and it was only stopped on year 2000.

K. BUILDING

A bunkhouse (made of light materials) will be constructed to serve

as the office and quarters of the farm workers.

L. FARM FACILITIES AND EQUIPMENT

The layer house and the brooding house will be constructed with
light materials. Brooders, feeders and drinkers will be automatically
installed in the poultry house. Please refer to Schedule 1 for the
construction cost.

M. MANPOWER REQUIREMENT
 To operationalize the project, the following personnel will be
needed in the farm:

Position No Rate/mo.

General Manager 1 (no salary)

Worker 2 35,000.00/worker
 MANAGEMENT ASPECTS

A. PROJECT MANAGEMENT

The proponent Mr. Louger Martinez is a native of Masbate City. He

is a son of a businessman and may be considered as an experienced
poultry raiser.

The project is a single proprietorship with Mr. Martinez being the

General Manager.

B. MANPOWER COMPLEMENT

General Manager - he shall oversee the overall operation of the

farm and ensure that proper care is being
done. He will be assisted by two workers on
the production aspect of the business. He will
handle personally the marketing activities.

Workers - shall be responsible for the overall farm

activities. They shall serve as caretakers of the
farm.

Must be male 20-35 years old., healthy, hard-

working and honest.

Contractual workers will be hired to work on the poultry farm

preparation and marketing activities.

C. ORGANIZATIONAL STRUCTURE

GENERAL MANAGER / OWNER

Contractual
Workers

WORKERS
(2)
 D. PROJECT TIMETABLE

ACTIVITIES TIMETABLE

1. Preparation of Documents
(Registration, Preparation of Project June July
Proposal)
2. Application with GFI July

3. Approval of GFI/Loan Release July

4. Farm preparation/construction August

5. Breeders/Roosters acquisition August

6. First Commercial Harvest February