Table of Contents

Mission ........................................................................................................................................................... 2
Vision ............................................................................................................................................................. 2
Background .................................................................................................................................................. 2
I. System design ............................................................................................................................................. 3
A.

Product and Service Design ............................................................................................................. 3

B.

Strategic Capacity Planning ............................................................................................................ 3

C.

Process Description ........................................................................................................................... 4

D.

Facility Layout .................................................................................................................................. 6

E.

Design of Work Systems.................................................................................................................... 8

F.

Location Planning & Analysis ......................................................................................................... 11

II. Quality .................................................................................................................................................... 12

A.

Management of Quality ................................................................................................................. 12

B.

Quality Control / Acceptance Sampling ........................................................................................ 14

III. Supply Chain Management .................................................................................................................. 15

IV. Inventory Management and Scheduling .............................................................................................. 16
A. Inventory Management ..................................................................................................................... 16
B. Aggregate Planning ........................................................................................................................... 16
C. Maintenance ....................................................................................................................................... 17
D. Scheduling .......................................................................................................................................... 18
References ................................................................................................................................................... 19

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Clydes Chicken Farm

Mission
It shall be the mission of Clydes Chicken Farm to maximize profits without
compromising the environment and the human health.
Unsustainable poultry raising practices shall be greatly discouraged.

Vision
It is my vision to make Clydes Chicken Farm a recognized brand in General Santos City
by providing the market with stable supply and delighting the consumers with a healthy source
of chicken meat and eggs.

Background
Chicken broiler and egg production are the most progressive animal enterprises in the
Philippines today. The poultry industry began as a backyard enterprise but has shifted to the
formation of very large integrated contract farming operations.
Chicken farming perfectly fits my personality as a future entrepreneur. I still plan on
practicing as a Certified Public Accountant, together with this business as my other source of
income. I consider chicken farming as a low-maintenance enterprise in terms of time and
monetary investment. This industry also provides a stable market demand and prices for its
outputs which will be suitable for my risk-averse type of personality.
Since my familys livelihood is farming, I also had a background of raising chickens when
I was a child. I already had the affinity for chickens which will also be a significant factor in
doing this kind of business.

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I. System design
This section shall discuss the operational aspects of the chicken farm. The business is
planned to start at a smaller scale, with an operating capital ranging from Php40,000 to
Php50,000.

A. Product and Service Design

The chicken farm shall offer two categories of products, namely the chicken meat and
eggs. In the meantime, broilers are to be raised for chicken meat because of the stability of its
market. But prospects in raising native chicken shall not be ignored.
Upon reaching the age of maturity, the live broiler chickens shall be sold to the market.
Eggs shall be harvested periodically and delivered to the market.
The chickens fecal matter and other organic wastes produced incidental to poultryraising shall be collected and sold to other local farmers to be used as organic fertilizers.

B. Strategic Capacity Planning

Clydes Chicken Farm shall be designed to be capable of producing 1,000 broiler
chickens per harvest. It shall require a total space of 288m2.
Egg production shall consist of 1,000 hens, requiring the same floor space of 288m2.

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C. Process Description
This section shall consist of two general classifications. One is for the broiler chickens
and the other one for the egg layers.

Broiler chicken
One-day old chicks shall be purchased from the suppliers. They will be raised for three
weeks and shall be transferred to another housing unit until reaching the mature stage. After
45-50 days of age, the chickens will be ready for harvest.
Birds which have attained the marketable weight should be sold. They should be
harvested as scheduled. This is to ensure that the birds will not consume extra feeds due to the
longer stay in the farm without any beneficial effect.
Returns:

Costs:

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Housing facilities
Day-old chicks
Vaccines, medicines
and supplements
Water
Heat and Light
Labor
Depreciation
Interest on capital
invested

Sales of broilers
Sale of chicken
manure to vegetable
growers or fishpond
owners
Sale of good-condition
empty feed bags

Egg layers
One-day old chicks shall also be purchased from outside suppliers. Upon reaching fourweek age, they shall be transferred to another housing unit. After a total of 16-18 weeks, the
chickens will be mature enough to lay eggs. They shall then be relocated to a laying house.
The eggs shall be collected regularly and stored in a separate housing facility. These eggs
shall be classified according to size and be delivered to the respective customers.

Costs:

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Returns:
Housing facilities
Day-old chicks
Starter mash
Grower mash
Layer mash
Vaccines, medicines
and supplement
Heat and light
Water
Labor
Depreciation
Interest on capital
invested

Sales from marketable

eggs
Sale from empty feed
bags

Sale of poultry manure

Sale of culls or
undersized birds

D. Facility Layout
This section shall present the general layout for the chicken farm. The whole area shall
be fenced with a combination of wood and metal wires. Trees shall be planted along the
perimeter to serve as wind breakers.

B-2

B-1

G
a
t
e

L-2
L-3

L-1

E
W
S
F

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Legend:
B1 Housing unit for broiler chicks
B2 Housing unit for 3-week old broilers until their maturity

L1 Housing unit for soon-to-be egg-layer chicks

L2 Housing unit for 4-week old to 22-week old soon-to-be egg-layers
L3 Housing unit for egg-layers
E Storage of eggs

F Storage for chicken feeds

S Storage for tools and other materials
W Water well
Z Area for fecal matter and other organic wastes

Black arrows represent the flow of products (mature broiler chickens, chicken eggs and organic wastes) to
the gate. Sufficient space should be provided for ease in transporting them outside.

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E. Design of Work Systems

Care of chicks
The first week in newly hatched chicks is important. It is here that the health of the fowl
depends, to give it good price. These first seven days is 15% of the growth and life of a growing
chick. Thus, it is necessary to provide the chicks with the right temperature, light and air. It is
also crucial not to overpopulate the chicks in the coop. They should be just enough in number
so as to allow free circulation of air.
Housing equipment
Feeding troughs or feeders

Feeders are placed either at the side of the cages of inside of it. In designing the feeders,
the ease of cleaning and avoidance of feed spillage shall be considered.
Waterers

The shape and size of waterers should be semi-circular and fairly wide to facilitate
cleaning. It may have a removable stopper at the drainage to allow for easier cleanings
For chicks, the waterers are usually one-gallon plastic jars. Plastic materials have the
advantage of lasting longer.
Feed carts

The feed cart is a handy piece of equipment which can effectively reduce the number of
hours spent in feeding the chickens. A wheelbarrow is also a good substitute for this.

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Poultry Management
Rearing of growing broilers
Broilers are marketed when they reach 45-50 days. Birds are given anti-stress drugs,
either in feed or in drinking water 2-5 days before and after they are transferred to the growing
houses. They shall be thoroughly cleaned and disinfected prior to the transfer.
During hot summer days, the appetite of the birds diminishes, but this can be
sufficiently restored by wet mash feeding or by taking appropriate measures to lower hot
temperatures like spraying or misting.
Clean and fresh water shall be provided at all times.
Feeding management
For broilers, commercial broiler rations are fed to the birds during the first 5 weeks and
from then on are replaced by the broiler-finisher ration. Commercial broiler feeds contain
additives considered to be growth promoting substances. These additives also help in
controlling diseases.
For egg layers, starter mash is given to chicks from day old to 8-10 weeks old. Growing
mash is given to birds until they are 5 months old. This mash promotes growth at a rate that is
just right to allow the bird to develop its body and internal organs so that it will start to lay egg
at the right time. Laying mash is given to hens when they are about to lay eggs of about 19
weeks of age. Wetting the mash is recommended at noon during the hot days to increase the
appetite of the birds.
Regular system of feeding shall be adopted because abrupt changes in feeding habits
will result to poor performance for the chickens.

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Management of the layer flock

Chickens are transferred to the laying house at the age of 16-18 weeks or at least 3
weeks before the onset of egg production. Calcium supplements such as lime stones and
ground oyster shells shall be provided to the layers.
Birds that show little or no promise of becoming potential layers shall be removed.
Egg handling
At least one nest per four females shall be provided. Free circulation of air around the
nest areas should be ensured. Eggs shall be collected regularly and be transferred immediately
to the egg cooling room.
Health Management
The most economical and ideal method to control disease is through prevention, which
could be achieved by proper management, good sanitation and having an effective vaccination
program.
Marketing
For broilers
Market outlets shall be surveyed even before buying broiler chicks to be assured of a
ready market at the time of harvest. Marketing arrangements with local hotels, restaurants,
cafeterias, institutional buyers and grocery stores should be made. The broilers should be sold
at optimum weight. More profits can be derived if broilers are sold between 1.3 to 1.5
kilograms.
For eggs
Arrangements shall be made with several market outlets, such as local bakeries, hotels,
restaurants, cafeterias, groceries, or sari-sari stores, higher income families and other regular
users. This will ensure regular orders for eggs.
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Eggs shall be classified and graded. Proper grading and classification can attract all types
of consumers. This would also enable the consumers to make purchasing decisions based on
the egg-size.

F. Location Planning & Analysis

Birds and fowls are more suited to cold than to hot weather. They lay more eggs in cold
weather because they are not stressed. Fowls do not perspire but they pant for breath and
need much drinking water in hot weather.
It is a requirement that a poultry farm must be located outside urban areas. It must also
be placed in 25 meter radius from sources of ground and surface drinking water. Medium and
large poultry farms must be at least 1,000 m. away from built-up areas (residential, commercial,
institutional and industrial). Minimum distance to the market is not really a significant issue in
operating a poultry farm. However, accessibility to concrete roads is highly desired for ease of
transporting the products to the market.

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II. Quality
A. Management of Quality
Sufficient Heat
Sufficient artificial heat shall be provided to keep chicks comfortably warm during the
day or night. An abrupt change in brooder temperature is to be avoided during the first-two
weeks of life.
Adequate Light and Ventilation
A well-lit brooder attracts and encourages the chicks to start feeding. Sufficient
ventilation shall be ensured to supply plenty of oxygen and facilitate the removal of carbon
dioxide and excess moisture. When there is not enough ventilation, the chicks will not only be
weak and in poor condition will also be more predisposed to respiratory diseases.
Ample space to avoid overcrowding
The brooder shall be provided with enough space to avoid overcrowding which leads to
poorly developed chicks, high mortality as well as harmful vices like toe picking, feather picking
or cannibalism.
Healthy stocks
Only healthy chicks are to be selected, which can be easily recognized by their dry, fluffy
feathers, bright eyes and alert active appearance. Chicks with wet vents and dull eyes shall be
avoided.
Correct Feeding
The chicks shall be provided with good quality feeds which can either be home grown or
commercially sourced. The chicks are to be fed occasionally rather than continuously. Research
studies have shown that when using intermittent feeding chicks utilize nutrients better.
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Proper Sanitation
Cleanliness and dryness of the brooding quarters will prevent contamination of the
chicks from parasites and diseases which may be carried by previous brooded chicks.
Regularity of Care and Management
Environment shall be kept as uniform as possible. Sudden changes in surroundings
cause a certain degree of stress to the chickens. Such examples are removal of brooder canopy
and slamming doors of brooder houses or the presence of drafts.
It is advisable that a regular caretaker feed the chickens following a definite schedule
during the first 3 weeks of the chicks life.
Environment Control
Optimum house temperature for laying birds is between 18C-29C. Within this range, a
uniform house temperature is to be maintained. Flock health and performance are highly
dependent on temperature control and good ventilation.
Vaccination against avian pest is to be performed in order to prevent the outbreak of
the disease.
All weak, deformed and sickly chicks shall be removed right away and properly disposed
of. The immediate burning or burying of dead birds is an important part of a good sanitation
program.

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B. Quality Control / Acceptance Sampling

Broilers
Only healthy broilers shall be sold to the market. These broilers are to be sold when
they reach 45-50 days of age. An ideal target weight is 1.3 to 1.5 kilograms.
Chicken eggs
Chicken eggs shall be graded or classified according to size. Those sizes shall include
small, medium and large. Classification of chicken eggs attracts all types of consumers. This
would also enable them to make purchasing decisions based on the egg-size.
Only clean eggs shall be sold, since everybody wants clean eggs. Dry or wet cleaning of
eggs shall be a standard practice on the farm. Breakage and spoilage of eggs are to be reduced
to the minimum. Broken eggs constitute losses and render the container unsightly.

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III. Supply Chain Management

Stock shall only be purchased from a reliable hatchery or franchised dealer where the
parent stocks are well-housed and well-managed.
Almost all types of chicken feeds are widely available in the market. Bargain purchasing
shall be practiced to lower the cost of acquiring materials.
Regular market survey for supplies should be performed to make sure that quality
materials are bought at minimum price.
Long-term relationship with reliable suppliers is to be maintained for stability of the
whole supply chain.
Adequate background check shall be observed when hiring farm assistants. At least two
persons shall be employed to help in the management of Chicken Farms operations.
For the transportation of eggs in the market, a tricycle shall be hired regularly. For
broiler chickens, institutional buyers such as large malls (ex. KCC, Robinsons, Gaisano, SM and
Fit Mart) and corporations (ex. San Miguel Corp.) provide their own delivery trucks when buying
the chickens from the farmers.
Upon earning enough capital, second-hand delivery equipment shall be bought to
facilitate transportation of products to the market.

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IV. Inventory Management and Scheduling

Proper scheduling shall be practiced to maximize the production of finished goods.

A. Inventory Management
The production of broiler chickens shall be done by batch. Once the first batch is
transferred to the second housing unit, a new batch of chicks shall be raised to make sure that
the whole capacity of the farm is maximized.
For chicken egg production, the maximum capacity of laying house shall be filled in
multiple batches. Only twenty percent of the whole capacity is to be raised per batch. Once the
whole capacity is reached, merely enough numbers of layers shall be raised to replenish the
maximum capacity.

B. Aggregate Planning
Before establishing the chicken farm, the whole market shall be surveyed first. Both the
small-scale local buyers and the large-scale institutional buyers shall be included in the list of
potential clients. Suppliers of one-day old chicks, chicken feeds and other materials needed for
the farms operation shall also be contacted beforehand.
The construction period of the farm should only be for a maximum of 6-months.
Adequate financial capital must be prepared before the formal construction shall begin.
Maximum capacity of the farm may not be fully utilized during the earlier stage of the
business. The farm shall only produce at the expected demand for its products. Once a strong
connection for the buyers is established, the whole chicken farm shall operate at full capacity.

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C. Maintenance
Regular check-up of the whole farms processes shall be maintained to make sure that is
operating within the standards established. Consultation to a professional veterinarian or other
animal specialists can be conducted to ensure that the health of the chickens is at the desired
state.
As the owner-manager, seminars relating to the poultry-raising business shall be
attended regularly in order to update existing knowledge and to incorporate them in improving
the operations.

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D. Scheduling

Broiler chickens
Construction
period

Chick-raising

Growing period to
maturity

Harvest
0-6 months

0-3 weeks

Repeating the
process

3-weeks to 7-weeks

New set of chicks shall be raised 3-weeks before the

maturity of the previous batch

Chicken eggs
Chick-raising

Growing period to maturity

Egg-laying stage

Regular
harvest
0-4 weeks

4-22 weeks

Shall be repeated only to the extent of

replenishing the number of egg-layers
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Upon reaching 22-weeks of age

References

Poultry Raising in the Philippines and Guide to Raise Healthy and Productive Layers. (2007,
September 30). Retrieved November 20, 2016, from The Filipino Entrepreneur:
http://www.filentrep.com/agri-business/poultry-raising.htm
How to Start a Poultry Farm Business. (2016, September 1). Retrieved November 20, 2016, from
Business Diary: http://businessdiary.com.ph/438/how-to-start-a-poultry-farm-business/
Starting a Backyard Broiler Business. (2016, February 27). Retrieved November 20, 2016, from
Business Diary: http://businessdiary.com.ph/428/starting-a-backyard-broiler-business/
San Miguel Corporation. (n.d.). How to be Successful in Poultry Business. Retrieved November
20, 2016, from B-MEG: http://b-meg.com.ph/page/how-to-be-successful-in-poultrybusiness/cat-poultry-raising

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