CHAPTER I: INTRODUCION

A. Company Profile

Vitarich Corp. engages in the feed and livestock operations in plants located in
the Philippines. The company produces hog, poultry, aqua, and other specialty
feed requirements for its livestock operations. It produces stores and markets its
feed which come in mash, pellet, crumble and extruded forms. The company's
products consist of broiler, layer, hog, aqua, and other specialty feeds. Its
livestock operations involve everything from breeding and growing to marketing
of animals. The company operates its business through the following segments:
Food, Feeds and Farms. The Food segment covers the growing, production and
distribution of chicken and broilers both live or dressed distributed among wet
markets and supermarkets. The Feeds segment is the manufacturing and
distribution of animal and aqua feeds, animal health and nutritional products and
feed supplements. The Farms division includes the production of day-old chicks
and pullets. Vitarich was founded by Feliciano Sarmiento, Lorenzo Sarmiento
and Pablo Sarmiento in 1950 and is headquartered in Bulacan, Philippines.

B. Paper Design and Methodology

The source is obtained from Annual Report of Vitarich Corporation from the
Securities and Exchange Commission (SEC). Documents and files are to be
made use as the basis for internal research and evaluation of the business.
Several details are also to be considered and compared with research to be
obtained from the internet.
CHAPTER II: EXTERNAL ANALYSIS

A. Political-Legal Forces

Legislation / Political Compliance with environmental laws enhances good

community and industry relationship and provides assurance to employee’s
health and safety. The industry also needs government approval for its principal
products and services from BAI and the National Meat Inspection Commission
for the registration of its feed mill, accreditation of chemical laboratory,
accreditation of meat plant, cold storage that will ensure that only safe and
wholesale products reach the consumers. The Philippine administration
government develops a national agriculture development plan known as
“Philippine Agriculture 2020 (PA2020). This plan has a goal of boosting
agricultural output by about 7% per annum over the period between 2005 and
2020. It focuses on raising income levels in rural areas and amongst farming
households. If the program is successful, it will almost certainly boost demand for
a range of different imported animal feed ingredients and inputs.

B. Economic Forces

The economy of feed mill industry is positively an opportunity. According to the

updated GNP and GDP of the Philippines, the overall rate of our GNP and GDP
is increasing in the past 3 years. This is a good sign for all the companies in our
country especially those in agriculture. When the growth rate of the country is
increasing, opportunity rises. As show in the data, the agriculture sector is also
increasing over the year.

C. Socio-cultural Forces

Cultural issues are also central to adequate nutrition given that the
appropriateness of foodstuffs, food taboos and food distribution along age and
gender lines are culturally determined. The organization of fisheries and the use
of forests are influenced by cultural perceptions and traditions. Indigenous
knowledge on specific species and use and conservation techniques are
essential for the preservation of biodiversity and the sustainable use of
resources.

FAO's approach to culture and development not only comprises the "full respect
for various religious and ethical values, cultural backgrounds and philosophical
convictions of individuals and their communities"1, but it also takes wholly into
account cultural factors in order to achieve sustainable rural development and
food security.

This note illustrates the latter with two examples of FAO's approach to cultural
issues and then describes one of the instruments it uses to understand cultural
factors and their complex relation with agriculture and development, socio-
cultural research.

D. Technological Forces

In technological aspects, high tech materials and equipment are being released,
much improved and upgraded that will help for a production capability for a
company. The industry focuses its production into improvement of Product
Quality and Animal Nutrition. The industry tends to pose for more improve
materials and equipment that they can use in order to meet the high demand.
Also, in raw materials of the industry, promotion of growing and usage of
alternative products for the supply will solve the difficulties of the industry.

E. Environmental Forces

Compliance with environmental laws enhances good community and industry

relationship and provides assurance to employees of their health and safety,
thereby freeing Vitarich from penalties & violations. Aside from compliance with
the environmental laws, the Corporation also needs government approval for its
principal products and services from the Bureau of Animal Industry (BAI) and the
National Meat Inspection Commission (NMIC) for the registration of its feedmill,
accreditation of chemical laboratory, accreditation of meat plant, cold storage,
respectively, that will all ensure that only safe and wholesome products reach the
consumers. The Corporation is also required to secure the accreditation of the
Department of Environment & Natural Resources (DENR) – for its dressing plant
& rendering plant. The Corporation and its subsidiaries have obtained all
necessary permits, licenses and government approvals to manufacture and sell
their products. The Corporation and its subsidiaries have no knowledge of recent
or impending legislation, the implementation of which can result in a material
adverse effect on the Corporation and its subsidiaries’ business or financial
condition.

PHILIPPINE CLEAN AIR ACT OF 1999

The State shall protect and advance the right of the people to a balanced and
healthful ecology in accord with the rhythm and harmony of nature.

In relation to Vitarich their factories must not violate this law because this can
affect the environment of the province and can worsen the climate change.

ECOLOGICAL SOLID WASTE MANAGEMENT ACT OF 2000

Ensure the proper segregation, collection, transport, storage, treatment and

disposal of solid waste through the formulation and adoption of the best
environmental practice in ecological waste management excluding incineration.

PHILIPPINE CLEAN WATER ACT OF 2004

The clean water act requires companies in the industry to serve a wastewater
discharge permit, which authorizes it to discharge liquid waste and pollutants of
specified concentration and volume from its factory into any water or land
resources specified period of time.
CHAPTER III: Industry Analysis

A. Definition of Industry

Vitarich is engaged in the feed and livestock operations in plants located

throughout the Philippines. They produce hog, poultry, aqua, and other specialty
feed requirements for they livestock operations. They formulate, produce, store,
and market for feed which come in mash, pellet, crumble, and extruded forms.
The product line consists of broiler, layer, hog, aqua, and other specialty feeds.
They also sell animal and aqua feeds to distributors, dealers, and end users.
Vitarich livestock operations involve everything from breeding and growing to
marketing of animals.

https://vitarich.com/business-profile

B. Market Analysis

The increase in population gives more opportunity for the Feed Mill Industry.
Food is commodity, so increasing in population means increasing of demand for
foods. Feed Mill Industry is part of the food processing so it’s gives a lot of
opportunity for this industry.

The demand for feed mill is constantly increasing. More of advantage in the
Philippines is that our government is focusing on prioritizing feed mill business in
the country and for exportation. They are giving attention into this industry
because it will benefit to the economy of our country. It is also an advantage that
our country is rich with all the raw materials like crops.

C. Competitive Analysis

Principal competitors of the Company are San Miguel Corporation (B-

Meg), Unahco, URC, Feedmix, Tateh, and Hocpo for the feed business.
Key players in chicken business are San Miguel Corporation (Magnolia)
and Bounty.
 Given its vision to serve its customer with effective technical and
marketing support, the company allotted resources to the research and
development of production process improvements and product value
enhancement.

D. Operation Analysis

Capacity and efficiency, that’s the two major goal of the Vitarich for the feed mill
production. To generate a strategy that will help the company supply the demand
of the customers. This strategy is for short term objectives which will lead the
company to gain more revenue to finance the needs of the whole corporation.

 Product

Feeds

 Hog

- Premium Plus

- Supreme Plus

 Aqua

- Premium Floater

- Premium Sinker

- Special Floater

 Broiler

- Broiler Finisher Pellet

- Broiler Grower Pellet

- Broiler Starter
 - Chick Booster Crumble

- Layer Feeds

- Premium Broiler Feeds

 Titan

- Stag Developer Crumble

- Stabilizer Pellet

- Breeder Pellet

- Chick Booster Crumble

- Conditioning Pellet

 Dairy Feeds

- Goat Kid Starter

- Goat Grower

- Goat Dairy

- Cattle Starter

- Cattle Grower

-Cattle Dairy

- Buffalo Starter

- Bufallo Grower

- Bufallo Dairy

Food
- Golden Dory By Cook's

- Chicken
 E. Financial Analysis

Universal Robina Corporation

San Miguel Corporation