POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

STA MESA CAMPUS

ANONAS, STA MESA, CITY OF MANILA

NUTRI-EGG. THE EGGCELLENT CHOICE

A Feasibility Study on Organic Chicken Egg Farming and Selling

In Partial Fulfillment of the Requirements for the degree in

Bachelor of Science in Accountancy
College of Accountancy and Finance

Presented to the Faculty of College of Accountancy and Finance

Submitted by
ALAMBAN, Anna-Rica
BALDOZ, Mary Nina
BEDANA, John Nicole
CERDA, Catherine Joy
CLAVERO, Joedelyn
LABRADOR, Cean Racel
NEBRAO, John Mathew
TABULAO, Marimel
URMINITA, Renz Harvey
VALENA, Regana Lee
VARGAS, Ricka Mae

October 2017

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 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF ACCOUNTANCY AND FINANCE
Sta. Mesa, Manila

ORAL EXAMINATION ENDORSEMENT FORM

(Please fill out in duplicate. Present the original copy to your adviser on the date of your oral examination.)

The project feasibility study entitled

Project Feasibility Study on Organic Eggs

______________________________________________________________________

prepared by (Surname first; Proponents’ names in alphabetic order)

1. Alamban. Anna-Rica N.
_________________________ Clavero, Joedelyn G.
5. _________________________ Urminita, Renz Harvey M.
9. __________________________
2. Baldoz, Mary Nina R.
_________________________ Labrador, Cean Racel P.
6. _________________________ Valena, Regana Lee
10. __________________________
3. Bedaña, John Nicole S.
_________________________ Nebrao, John Mathew N.
7. _________________________ Vargas, Ricka Mae A.
11. __________________________
4. Cerda, Caherine Joy A.
_________________________ Tabulao, Marimel O.
8. _________________________ 12. __________________________
of BSA IV- 13
Year and Section

is hereby endorsed to the Panel of Examiners on Oral Examination on

AVR 1 PROF.LUZVIMINDA PAYONGAYONG

Scheduled Date and Time of Oral Examination Venue Adviser

in partial fulfillment of the graduation requirements for the degree

BACHELOR OF SCIENCE IN ACCOUNTANCY

Degree Program

RECEIVED BY REFERENCE NO.

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 ACKNOWLEDGEMENT

First of all, we would like to extend our deepest gratitude to our beloved Professor, Mrs.

Luzviminda S. Payongayong, for her support and the opportunity to conduct and finish this study

as part of our journey for seeking of knowledge.

To our parents, for all the love and support not only in doing this project but throughout

this path we all chose to take, we thank you for being one step away. Special thanks to Mrs. Valena,

for accommodating the researchers as we go outside and explore the vicinity of our target location,

Laguna, and for guiding us as we seek more information about this research. And to (whoever

parents’ house) for lending us their roof for us to successfully accomplish the paper of this study.

We would like to thank Costales Nature Farms, for enlightening the group more about

organic chicken farming. Especially to their Poultry Farm Supervisor, Arnold Gregana, for

entertaining us as he cheerfully answered the ton-weighing questions we brought during our

fieldwork on their farm.

And to everyone who became part of this research, to make this study happen, and to

accomplish it with ease, thank you.

Above all, the study wouldn’t be possible without all the grace from our Almighty God.

The Proponents

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 TABLE OF CONTENTS

Title Page …………………………………………………………………………………..…. i

Endorsement Letter/Approval Sheet ……………………………………………………...... ii
Acknowledgement …………………………………………………………………....…...…. iii
Table of Contents ……………………………………………………………………………. iv
List of Tables ………………………………………………………………………………… viii
List of Figures ……………………………………………………………………………..… ix
Introduction …………………………………………………………………….………….... x
Nutri-Egg Logo ..……………………………………………………………...…………..…. xi

Chapter 1 Executive Summary of the Study ………………………………………….... 1

A. Name of the Business ……………………………………………………………….... 1
B. Title of the Study ……………………………………………………………………... 1
C. Location of the Business ……………………………………………………………… 1
D. Description of Logo …………………………………………………………………... 2
E. Brief Description of the Project…………………………………………………….... 2
a) Company Background………………………………………………………… 2
b) Nature and Kind of Business ………………………………………………... 3
c) Type of Organization ………………………………………………………… 3
F. Project’s General Objective …………………………………………………………. 3
G. Specific Objective …………………………………………………………………….. 3
H. Project Summary …………………………………………………………………….. 4
a) Market Study………………………………………………………………….. 4
b) Technical Study ………………………………………………………………. 4
c) Management and Legal Study ……………………………………………….. 4
d) Financial Study ……………………………………………………………….. 4
e) Socio-Economic Study ……………………………………………………….. 4
I. Operational Terms …………………………………………………………………… 4
Chapter 2 Market Study …………………………………………………………………. 6
A. Target Market ……………………………………………………………………….... 6

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 B. Target Customer ……………………………………………………………………… 6
C. Competitors …………………………………………………………………………… 7
D. SWOT Analysis ………………………………………………………………………. 7
E. Methodology ………………………………………………………………………….. 8
F. Demand Analysis ……………………………………………………………………... 8
G. Supply Analysis ………………………………………………………………………. 11
1. Classification of Supply ……………………………………………………… 11
a) Size …………………………………………………………………….. 11
b) Product Quality ………………………………………………………. 11
2. Historical Supply of Organic Chicken Eggs ………………………………… 11
3. Projected Supply ……………………………………………………………… 12
H. Demand-Supply Gap …………………………………………………………………. 12
I. Sales Forecast ………………………………………………………………………… 13
J. Market Share …………………………………………………………………………. 14
K. Marketing Strategy …………………………………………………………………… 14
a) Product ………………………………………………………………………... 14
b) Price …………………………………………………………………………… 15
c) Place …………………………………………………………………………… 15
d) Promotion ……………………………………………………………………... 15
Chapter 3 Technical Study ………………………………………………………………. 19
A. Product Description ………………………………………………………………….. 20
B. Product Costing ………………………………………………………………………. 21
C. Product Pricing ………………………………………………………………….......... 21
D. Business Process ………………………………………………………………………. 22
E. Business Location …………………………………………………………………….. 26
F. Business Layout ………………………………………………………………………. 27
G. Production Schedule ………………………………………………………………….. 27
H. Raw Materials ………………………………………………………………………… 28
a) Farming Needs ………………………………………………………………... 28
i. Chicken Housing ……………………………………………………... 28
ii. Organic Feeds Raw Materials ……………………………………….. 31

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 iii. Farm Machineries and Equipment ………………………………….. 34
iv. Farm Supplies ………………………………………………………… 36
v. Farming Utilities ……………………………………………………… 37
b) Office Needs …………………………………………………………………... 38
i. Office Furniture and Fixtures ……………………………………….. 38
ii. Office Equipment …………………………………………………….. 40
iii. Office Supplies ………………………………………………………... 42
c) Sanitary Utilities and Supplies ………………………………………………. 43
I. Uniform ……………………………………………………………………………….. 44
J. Waste Disposal Management………………………………………………………… 45
K. Direct Labor Requirement ……………………………………………………........... 45
L. Project Cost Estimates ……………………………………………………………….. 45
Chapter 4 Management and Legal Study ……………………………………………….. 47
Management Aspect ……………………………………………………………………... 47
A. Form of Ownership ……………………………………………………………… 47
B. Organization’s mission, vision, and core values ………………………………. 47
C. Capitalization ……………………………………………………………………. 48
D. Poultry Management Structure ………………………………………………… 49
E. Manpower Requirements ……………………………………………………….. 50
F. Code of Ethics …………………………………………………………………… 51
G. Project Schedule ………………………………………………………………… 54
H. Internal Controls ………………………………………………………………… 55
I. Employment Process ……………………………………………………………. 56
J. Compensation Plan ……………………………………………………………… 57
K. Position and Employees Benefits ………………………………………………. 57
L. Work Schedule …………………………………………………………………... 58
M. Contracts of Employment ………………………………………………………. 58
N. Company Policies ………………………………………………………………... 59
Legal and Taxation Aspect ……………………………………………………………… 62
A. Registration Requirements …………………………………………………... 62
B. Technical Requirement ………………………………………………………. 62

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 Labor Laws for Employees ……………………………………………………… 63
Income Taxes ……………………………………………………………………... 63
Tax Form …………………………………………………………………………. 63
Procedure …………………………………………………………………………. 64
Deadline …………………………………………………………………………… 64
Chapter 5 Socio-Economic Study ……………………………………………………….. 66
Objectives of the Study …………………………………………………………………… 66
A. Promoting a healthier way of living ……………………………………………. 67
B. Contribution to the Agricultural sector in the Philippines …………………… 67
C. Community economic development ……………………………………………. 67
D. Environmental conservation ……………………………………………………. 68
Chapter 6 Financial Study

Bibliography
Appendices
I. Financial Schedules
II. Curriculum Vitae

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 LIST OF TABLES

Number Title Page

1 Historical Population …………………………………... 9

2 Projected Population …………………………………… 9
3 Historical Demand of Organic Chicken Eggs ………… 9
4 Projected Demand of Organic Chicken Eggs ……….... 10
5 Historical Supply Table ………………………………... 11
6 Projected Supply ……………………………………….. 12
7 Demand-Supply Gap Table ……………………………. 12
8 Sales Forecast …………………………………………... 13
9 Projected Market Share ……………………………….. 13
10 Product Costing Table …………………………………. 21
11 Product Pricing Table ………………………………….. 21
12 Brooding Temperature ……………………………….... 23
13 Brooding Feed Consumption Schedule ……………….. 24
14 Hardening Feed Consumption Schedule ……………… 25
15 Ranging Feed Consumption Schedule ………………… 25
16 Land Acquisition Cost ………………………………..... 26
17 Chicken Housing Raw Materials ……………………… 28
18 Organic Feeds Raw Materials …………………………. 31
18.1 Cost of Feeds and Disinfectant ………………………… 33
19 Farm Machineries and Equipment ……………………. 34
20 Farming Supplies ……………………………………….. 36
21 Farming Utilities Consumption ………………………... 37
22 Office Furniture and Fixtures ………………………..... 38
23 Office Equipment ………………………………………. 40
24 Office Supplies ………………………………………….. 42
25 Office Utilities and Supplies …………………………… 43
26 Project Cost ……………………………………………... 45
27 The Partners ……………………………………………. 48
28 Compensation Rate …………………………………….. 57
29 Employee Benefits ……………………………………… 58

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 LIST OF FIGURES

Number Title Page

1 Location Map …………………………………………… 1

2 Nutri-Egg Logo …………………………………………. 2
3 Business Poster …………………………………………. 16
4 Business Promotional Flyers …………………………... 17
5 Networking Campaign Poster …………………………. 17
6 Nutri-Egg Website ……………………………………… 18
7 Product Production Chart ……………………………... 22
8 Sitio Lamao, Brgy. San Antonio, Kalayaan, Laguna … 26
9 Business Floor Plan with measurements ……………… 27
10 Head Operational Staff ………………………………… 44
11 Operational Staff and Driver ………………………….. 44
12 Business Management Structure …………………….... 49
13 Manpower Requirements ……………………………… 50
14 Project Schedule ………………………………………... 54

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 INTRODUCTION

Having a healthy lifestyle has been a common practice in today’s generation and along
with this is the growing demand for organic products such as fruits, vegetables, meat and dairy
products. We see and hear the word “organic” all around us these days and to be labelled organic,
the product must be free of any artificial chemicals and additives. How the food we eat are being
grown and processed can have a major impact to our well-being at the same time to our
environment. Studies says that organic foods have more nutritional benefits than non-organic foods
while organic farming has a big contribution in improving and protecting the environment.

One of the most patronized organic food in the market are free-range eggs. Eggs has serve
as a staple food for many household and has been an important and versatile ingredient for cooking,
baking and home remedies. It offers nutritional values like proteins, minerals and vitamins that our
body needs at a very inexpensive price. And with the organic eggs, conventional one has improved
and made healthier for consumption.

In accordance to this, the proponents of Nutri-Egg decided to come up with the idea of
providing high quality free-range eggs in the market that will give the benefits of ordinary eggs
and beyond. Considering factors such as means of preparation, guaranteed organic farming
procedures, sanitary measures and best quality product will be our key factors to achieve
customer’s satisfaction and support.

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 LOGO

A Feasibility Study on Organic Chicken Egg Farming and Selling

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