1. Philippine Market Overview
Introduction
Philippine Market Overview
Philippine poultry market has a volume of P1.25 billion heads
40%+ is with San Miguel Foods Inc, with P30 billion revenue in 2012
SMFI Target – additional 357 new houses
2013: 500M heads
2014: 600M heads
Of all poultry players, SMFI is the only exporting company.
Distribution channels : 50% wet market,
50% malls, groceries and supermarkets.

2. Trends in Poultry
Contract Growing with an Integrator for small scale businesses
Subcontracting for a clients like KFC, Mang Inasal, Supermarkets, Jolibee for large scale
New facilities are now “Controlled Climate System (CCS)”

3. “Tunnel Ventilation with evaporative cooling ”
Controlled Climate System (CCS)
“Tunnel Ventilation with evaporative cooling ”

4. Conventional Poultry House

5. Conventional Poultry Equip

6. CCS System

7. Market Competitive Analysis
Dominant players are SMFI, Bounty Fresh, with small players like Robina, Vitarich, Nutriva, Sustamina, Foster and many independent producers. A new big player from Thailand just entered named CP, who is the 4th largest poultry producer globally.
Brands currently strong in the market at Magnolia, Purefoods, Bounty Fresh, Monterey
The entrance of CP will change the landscape for commercial production, might lead to the death of smaller local players
The local market and export market is growing

8. Corporate Mission/Vision
To be the top producer of broiler chicken
Vision:
To be the choice chicken supplier in the local market

9. SWOT Analysis Strengths
Has experienced poultry manager and flockmen per house
Supplier of equipment is very supportive and attentive to our needs
Has data to support and analyze trends in the cycle of growth
Facilities is new and operate in accordance to standard best practices
Weaknesses
Poultry is physically far from base of operations
Need to recruit new flockmen due to size of farm/flock

10. SWOT Analysis Opportunities:
Duplicate new farm sites to capture the volume needed by SMFI (at least 350+ houses for 2014)
Become a commercial farm or a subcontracting farm in the future
Threats:
Avian Flu CP

11. Organizational Structure

12. Organizational Roles Farm Manager – overseer of whole farm operation
Electrician – manages all electrical equipments of farm
Checker – receives, disburses and keeps record of all deliveries to farm
Assistant Manager – assists farm manager

13. Organizational Roles Guard– acts like assistant farm managers at night
Flockman – veteran flockman
FlockmanA – new flockman
FlockmanB– flockman with experience

14. Checklist for Multi-site Preparedness
Acquisition of land that can fit an 8 building facility, preferrably near the same town and vicinity of existing sites
Acquire and train poultry staff
Create an operations manual
Review performance of equipments currently used
Review service performance of suppliers
Check for new suppliers/trends in the industry
Forge partnership with banks

15. Profit & Loss Statement
Cycle 1 2 3 4 5 6 7
Whole Year
Income
4,888,800.00
34,221,600.00
Expenses
Labor
280,000.00
1,960,000.00
Managerial
Medicine
Food Expense
140,000.00
980,000.00
Electricity
700,000.00
4,900,000.00
Maintenance
Magnificent Trio
2,192,857.14
15,350,000.00
Total Expenses
4,012,857.14
28,090,000.00
0.00
Net Income
875,942.86
6,131,600.00
Net Cash
3,068,800.00
21,481,600.00

16. Business Objectives: 2014-2016
Year
Number of Facilities
Net Income
Growth
2013
2014 1
P 21M
100%
2015 2
P42M
2016 3
P63M
50%

17. Growth Drivers Development and availability of Manpower
Availability of Agricultural Land to acquire and operate
Development of Potential Customers
Expansion into Commercial production
Exporting

18. Human Resource Development Strategy
Pre-operations Trainings
Operations Manual
Tricks of the Trade
Continuous Seminars for Managers
In site classroom trainings for flockmen
Sharing of best practices among flockmen