A feasibility study on contract growing (broiler operations) for the La Sallian agripreneur

• Main Authors: Ang, Evangeline, Diaz, Celeste P., Laroco, Mary Jane, Salarza, Nadia, Tan, Iris
• Format: text
• Language: English
• Published: Animo Repository 1992
• Subjects: Broilers (Poultry); Poultry industry; De La Salle University > Students; Agricultural industries; x4 Agribusiness; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/6436
• Institution: De La Salle University

Contract growing is a viable agribusiness because there is still abundance of resources, such as land and materials, required to operate. More importantly, in the demand-supply analysis, it has been found that there is still demand to fill for broilers.The project cost for 30,000 heads for a broiler operation in Calauan, Laguna is P 1,854,898. Our student survey shows that 47,13 percent, the majority from the distribution of alternatives, is willing to put out an average out-of-pocket cost of P 290,000. This implies that for the La Sallian agripreneur to consider this investment, he must find other sources to reach the minimum project cost. One way to achieve this is through a partnership venture, for which 52.46 percent of the surveyed students are willing to go into, and through loans, 29.25 percent. The remaining percentage is distributed between asking for more capital from parents, relatives, or from own savings. There is no particular difficulty with the technical aspects as there are enough materials from livelihood programs and libraries to orient the grower. Three out of four integrators give seminars on broiler growing. In addition, field technicians of the integrator company visit the place twice a week to ensure proper care and handling of the birds. The broilers are as much important to them as they are to the grower. The broiler contract growing is a profitable business with an average profit margin of 19.60 percent per annum. Return on equity also looks good with an estimated 6 percent and 16 percent, assuming pessimistic and optimistic conditions respectively. Production cost per chick is P 4.70.The researchers recommend this type of agribusiness. Aside from the profitability factor, it supplies an alternative to cheaper protein sources. It also supports the country's economic goal of country-side development by putting in investments, employment, and thus income to rural areas. It must be part of every La Sallian to be conscious of not just his personal well-being, but also of national well-being.