sweet spring country farm: an organic native swine apprenticeship study
TRANSCRIPT
SWEET SPRING COUNTRY FARM(AN ORGANIC NATIVE SWINE PRODUCTION APPRENTICESHIP STUDY
VISAYAS STATE UNIVERSITYVISCA, BAYBAY CITY, LEYTE
CHERRY JOY SALDIVAR BANQUICIOAPRIL 2015
ii
SWEET SPRING COUNTRY FARM
(AN ORGANIC NATIVE SWINE PRODUCTION APPRENTICESHIP STUDY)
AN APPRENTICESHIP STUDY
PRESENTED TO THE FACULTY OF THE
DEPARTMENT OF BUSINESS MANAGEMENT
COLLEGE OF MANAGEMENT AND ECONOMICS
VISAYAS STATE UNIVERSITY
VISCA, BAYBAY CITY, LEYTE
IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF
BACHELOR OF SCIENCE IN AGRIBUSINESS
CHERRY JOY SALDIVAR BANQUICIO
April 2015
iii
TRANSMITTAL
The undergraduate apprenticeship study attached hereto entitled,
“SWEET SPRING COUNTRY FARM”: An Organic Native Swine Production
Apprenticeship Study prepared and submitted by Cherry Joy S. Banquicio, in
partial fulfilment of the requirements for the degree of Bachelor of Science in
Agribusiness, is hereby accepted.
JOVIEL R. TEVES Adviser
_____________________ Date
Accepted in partial fulfilment of the requirements for the degree of
Bachelor of Science in Agribusiness.
JOVIEL R. TEVES Chairman
Student Research Committee
_______________________ Date
ANTONIO P. ABAMO Head
Department of Agribusiness and Management _______________________
Date
iv
VISAYAS STATE UNIVERSITYVisca, Baybay City, Leyte
GENERAL EVALUATION OF THE APPRENTICESHIP REPORT
Title: SWEET SPRING COUNTRY FARM(AN ORGANIC NATIVE SWINE PRODUCTION APPRENTICESHIP STUDY)
General Comments of the Adviser and the Head of the Department of Business and Management.
(Please check the appropriate box and blank)
( ) Apprenticeship study strongly recommend for publication
_________ As approved
_________ Needs revision
_________ Needs to be rewritten
( ) Apprenticeship study may be published
_________ As approved
_________ Needs revision
_________ Needs to be rewritten
( ) Apprenticeship study should be integrated with related studies
( ) Apprenticeship study not recommend for publication because results need
further verification.
JOVIEL R. TEVES ANTONIO P. ABAMOAdviser Department Head
______________ ____________________ Date Date
v
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ACKNOWLEGEMENT
“Trust in the Lord with all your heart, and lean not on your own
understanding in all your ways acknowledge Him, and He shall direct your path”
The apprentice wishes to extend her sincere thanks and gratitude to the
following individual who in one-way or another has made this work a success.
The ALMIGHTY FATHER for the constant guidance and light and for the
divine assistance in making this study a success. To her parents Mr. and
Mrs. Henry and Tita Banquicio, to whom she owe his life, for their love,
understanding, guidance, prayers, moral and financial support that gave her the
courage to go on despite several odds.
To her brothers, Christian and Chris Jay, for giving her love, support
advices and most of all the strength and inspiration to carry on.
Maam Joviel R. Teves, her apprenticeship adviser for her encouragement
and most all patience and approval of this work.
Mr. Francis “Kiko” Pangilinan, owner of Sweet Spring Country Farm, for
giving her the opportunity to conduct her apprenticeship study in the farm and for
sharing her advices for success.
Mr. Afriel M. Babaan, Sweet Spring Country Farm’s Supervisor, for
guiding her, imparting his knowledge and for giving her assistance and
information for the study.
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Mrs. Rufina C. Tanamal, Sweet Spring Country Farm’s Field Supervisor,
for the support as well as assistance in almost all the farm activities that was
conducted and the kindness that she have given to the apprentice.
To the farm workers, Kuya Mario, for sharing his knowledge about herbs
production, Kuya Bebot for guiding the apprentice in the organic native swine
production, Tatay Teddy for the support and happy moments, Andoy for the good
food he served us and the kindness he had given and Kuya Marlon who had
given us advices and memories to be treasure forever.
Mommy Lil and her family for their kindness and accommodation in their
kubo for the two months stay.
Ate Joyce for the kindness and laughter that were shared through the
apprenticeship study.
Ate Mona, Kerry, Tin2x, Virly and Beth the apprentice’s partners, for their
understanding, trust, kindness and warm companionship. The apprentice will
never forget those experiences being with all of you.
To the borders of Tabat Cottage namely Kuya Tabat, Ate Melca, Jenneth
Ate Jenny, Ate Jay-Ann, Ate Monic, Rica and Anamarie for their encouragement,
pleasant companionship, shared jokes and laughters.
To the apprentice’s friends, Jojo, Titay, Bang2x, Grax, Gladys, Aning,
Abigail, Dindo, Nello, Apple and to others not mentioned who were the
apprentice’s constant companions in her college days, the hardships and the
merry as well as the sad moments, those were all worth remembering.
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To my aunt, uncle, lolo and lola and my cousins for the encouragement
and inspiration.
Mr. Irose Man Boniel, a special friend, for the love, moral support, prayers
and togetherness.
And to the unnamed persons who help the author in making this
manuscript a success. THANK YOU VERY MUCH!
“Man’s highest good may come from his deepest suffering”.
CHERRY JOY SALDIVAR BANQUICIO
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TABLE OF CONTENTS
TITLE PAGECOVER iTITLE PAGE iiTRANSMITTAL iiiGENERAL EVALUATION OF THE APPRENTICESHIP REPORT
iv
ACKNOWLEDGEMENT vTABLE OF CONTENTS viiiLIST OF TABLES xLIST OF FIGURES xiiLIST OF APPENDICES xiiiEXECUTIVE SUMMARY xivINTRODUCTION Objectives of the Study 2 Significance of the Study 2 Scope and Limitation of the Study
3
METHODOLOGY Data Gathered 4 Data Presentation and Analysis 4THE FARM Historical Background 5 Location and Physical Layout 8 Equipment, Machines & Materials
14
ORGANIZATION AND MANAGEMENT Form of Business Organization 16 Organizational Structure 18 Employee’s Compensation, Benefits and Incentives
21
Management Practices and Policies
23
PRODUCTION Sources of Raw Materials 26 Production Flow 28 Production 29 Cultural Management Practices 34 Quality Control 37 Waste Management/ Sanitation 37 MARKETING Product 38 Pricing 39
x
Place of Distribution 39 Promotion 42FINANCING Horizontal Analysis 45 Vertical Analysis 47 Financial Ratio Analysis 49APPRENTICESHIP PROPER 50COMPARISON OF FIRM PRACTICES WITH INDUSTRY PRACTICES
54
SWOT ANALYSIS 58CASE ANALYSIS Point of View 60 Relevant Case Facts 60 Generating and Classifying Problem Areas
62
Problem Identification 63 Problem Analysis 64 Alternative Courses of Action 69 Recommendation 71REFERENCES 74APPENDICES Definition of Terms 76
xi
LIST OF TABLES
TABLE PAGE1 Sweet Spring Country Farm Products 72 Sweet Spring Country Farm Key Events 73 Common Farm Facilities and Equipment
used in Sweet Spring Country Farm14
4 Facilities and Equipment used in Organic Native Swine Raising
15
5 Sweet Spring Country Farm Personnel Profile
19
6 SSCF’s Employee’s Compensation, Benefits and Incentives
22
7 Native Pig population in the Sweet Spring Country Farm as of January 2015
25
8 Organic Native Swine Monthly Average Production as of January 2015
26
9 Sources and Procurement of Inputs 2710 Other Inputs 2711 Production Activities at Sweet Spring
Country Farm (Organic Native Swine Raising)
30
12 Production Activities at Sweet Spring Country Farm (Organic Native Pig Meat Products)
33
13 Vaccination in Organic Native Swine 3614 Organic Native Swine Products 3815 Prices of the different Organic Swine
Product in SSC Farm39
16 Comparative Income Statement of Sweet spring Country Farm
44
17 Horizontal Analysis of Comparative Income Statement
46
18 Vertical Analysis of Comparative Income Statement
48
19 Computed Profitability Ratios of Sweet Spring Country Farm 2013-2014
49
20 Areas of Apprenticeship and Description of Activities at Sweet Spring Country Farm
53
21 Comparison of Business Practices of the Farm and the Organic Certification Center of the Philippines Standard
55
22 SWOT Matrix of Sweet Spring Country Farm
59
23 Criteria and Prioritizing for Selecting Problem
63
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24 Organic Native Swine Monthly Average Production as of January 2015
65
25 Organic Swine Products corresponding Weight and Prices
65
26 Monthly Lost Sales on Organic Swine Products
65
27 Budget Plan for the Organic Native Swine Production Expansion
73
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LIST OF FIGURES
FIGURE PAGE1 Sweet Spring Country Farm Location Map 112 Sweet Spring Country Farm Lay-out 123 Organic Native Swine Raising Area Layout 134 Sweet Spring Country Farm
Organizational Structure18
5 Organic Native Swine Production Process Flow Chart at SSC Farm
28
6 Boiled Chopped banana stalks and jackfruit and Rejected Lettuce as feeds for native pigs
36
7 Distribution Channel of SSCF’s Organic Native Swine Products
41
8 Promotional tools used in Sweet Spring Country Farm
42
9 Ishikawa Diagram 68
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LIST OF APPENDICES
APPENDIX PAGEA Definition of Terms 76B Schedule Log Sheet 77C Swine Production in the
Philippines87
D Organic Certification Center of the Philippines Standards
89
E Computations of Financial Ratios
93
F Common Farm Equipment and Facilities
94
G Organic Native Swine Equipment and Facilities
97
H Sweet Spring Country Farm Sanitary Permit to Operate
99
I Sweet Spring Country Farm Mayor’s Permit
100
J Sweet Spring Country Farm’s Certificate of Appreciation from ATI Reg. IVA
101
K Apprentice’s Certificate of Completion
102
L Apprentice’s General Evaluation 103M Documentations 104
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EXECUTIVE SUMMARY
BANQUICIO, CHERRY JOY S.., Visayas State University, Visca, Baybay City,
Leyte, April 2015. SWEET SPRING COUNTRY FARM: AN ORGANIC NATIVE
SWINE PRODUCTION APPRENTICESHIP STUDY
Major Adviser: Joviel R. Teves
An apprenticeship study was conducted at Sweet Spring Country Farm
(SSCF) located in Sitio Bigtasin, Kaysuyo, Alfonso, Cavite, from November 18,
2014 to January 6, 2015. The study aimed to (1) perform management-related
activities in an agribusiness firm; (2) compare the activities with the practices in
the industry; (3) identify and assess the problems and or opportunities pertaining
to those activities and; (4) generate the best solutions to the problems or
strategies to take advantage of the opportunities.
Sweet Spring Country farm is an integrated farm owned by Mr. Francis
“Kiko” Pangilinan. Established in April 2012, the farm had sourced out its initial
investment from the owner’s personal savings. The farm employed eight workers.
Live organic native swine, meat cuts and lechon were the products of the
organic native swine production. It is distributed to Mesa, a chain of restaurant
serving modern Filipino cuisine, in Alabang and walk-in buyers. The farm used
the natural way of swine reproduction.
Applying the case method of problem analysis it was found out that the
farm face two different types of problems on unattained target production and
lack of manpower and well-trained workers. The main problem on unattained
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target production was due to the small and limited area of the piglets and lacked
technical know-how of farm worker.
It was recommended to expand the organic native swine production area
to accommodate more piglets and acquired additional sows so that the
production target will be efficiently meet.
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INTRODUCTION
The Philippines pig population comprises several breeds that are
distributed across the country and exist on different farm types that practice
different pig production systems. There are many breeds of pigs in the
Philippines. The most common pig breeds in use are Landrace, Yorkshire or
Large White, Pietrain and Duroc; other important, although less common breeds,
are the Hampshire, Berkshire and the Philippine native pig.
Native pigs are characteristically small, usually black in color, spotted, and
are resistant to parasites and diseases, native pigs can adapt to local conditions
and can tolerate heat and cold environments better than the imported breeds.
They can thrive well on locally-available feeds, including kitchen and farm refuse,
and can cope with low quality feeds and maintenance.
Sweet Spring Country Farm is located at Alfonso, Cavite. It is an
integrated farm that promotes organic farming. The farm chose to raise native
pigs because native pigs can be a viable alternative for swine producers who
cannot cope with the high price of commercial swine feeds and for those who do
not have enough capital for housing and feeding. This animal can be raised
without the use of chemical inputs and, as a breed, has high economic potential
for those engaged in organic swine production. In addition, native pigs are very
rich sources of genetic materials for local breed development and improvement
programs.
The firm was chosen for the field practice to enhance the student-
apprentice’s entrepreneurial and techno-managerial skills necessary in business,
2
to gain knowledge about the technology and management practices important in
the operation of native swine production.
Objectives of the Study
The general objective of the study is to gather information on the overall
operations and management practices employed by Sweet Spring Country Farm.
It specifically aims to:
1. Perform management-related activities in an agribusiness firm;
2. Compare the activities with the practices in the industry;
3. Identify and assess the problems and or opportunities pertaining to those
activities and;
4. Generate the best solutions to the problems or strategies to take
advantage of the opportunities.
Significance of the Study
The apprenticeship studyenabled the apprentice to experience the reality
of business. This also allowed the apprentice to apply the concepts learned and
gain business insights first hand.
In addition, this study also identified the possible problem that beset the
business and recommended feasible solutions to the identified problem.
3
Scope and Limitation of the Study
The apprenticeship study was conducted on November 18, 2014 to
January 6, 2015. It was focused on the observation, participation and data
gathering on organic native swine production and practices employed in Sweet
Spring Country Farm. During the conduct of the apprenticeship study, the
apprentice performed only selected activities permitted and sanctioned by the
management.
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METHODOLOGY
Data Gathered
A 300 hours apprenticeship study focused on the organic native swine
production of Sweet Spring Country Farm Sitio Baligtasin Kaysuyo, Alfonso,
Cavite was conducted on November 18, 2014- January 6, 2015.
Primary data about the firm’s operation and management practices were
gathered through participative work with the key personnel and field workers.
Familiarization of farm machineries and equipment was also gained through daily
observation and actual participation on the daily activities.
Secondary data which included the historical background of the firm and
financial records were obtained through permanent files. Definition of terms,
acronyms, other relevant information, and supporting documents to gain macro
understanding of the industry were acquired from relevant web sites and main
library of Visayas State University, Visca, Baybay City, Leyte.
Data Presentation and Analysis
Data and information gathered from the firm were presented in tables,
figures, charts and narrative description of the firm’s organization and
management, production, marketing and financing.
A horizontal, vertical and profitability ratio analyses on the firm’s income
statement were done to portray the financial status of the business. The case
method was used to determine and solve identified problems in the farm’s
operations.
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THE FARM
Historical Background
Sweet Spring Country Farm (SSCF) was established in April 2012. When
Senator Francis “Kiko” Pangilinan was elected chairman of the Senate
Committee on Agriculture and Food in 2010, he didn’t know the first thing about
farming. He started small, planting vegetables in the backyard of the home at the
Ayala Westgrove heights in Sta. Rosa, Laguna, where he lives with his wife,
actress Sharon Cuneta and their children.
Senator Pangilinan came upon an opportunity to own some three hectares
of land in Alfonso, Cavite, bordering Nasugbo, Batangas. The piece of property
was named Sweet Spring Country farm, a coffee farm, with some 500 coffee
trees planted all over it. While the property was leased by Pangilinan, he has
taken the task of farm manager. One of the first things he did was to enter into a
service contract with Gourmet Farms, one of the leading suppliers of organically
grown produce in the country. By virtue of the contract, Gourmet Farms would
share its farming technology and best practices with Sweet Spring Country Farm,
and the latter would sell its produce to the former. The farming technology and
practices shared by Gourmet Farm to Sweet Spring Country Farm is all about the
techniques and strategies of lettuce production and making organic fertilizers.
They also trained the farm workers of the different activities to be performed in
the farm. The farm did not share the detailed technologies and practices to the
apprentice due to its confidentiality. The contract was stopped for the owner’s
personal reason.
6
The lease started in January 2012, but planting new crops to add to the
coffee trees started in April of that year. Lettuce (Green Ice, Romaine, and Red
Sail) and herbs such as sweet basil, tarragon, rosemary, oregano, citronella, etc.
were the farms first crops. Vegetables such as eggplants and string beans, as
well as Japanese sweet corn and cacao followed. Apart from growing produce,
Pangilinan and his staff of eight also take care of 140 free-range chicken, six
pigs, and a few turkeys and rabbits. From Friday- Sunday, the senator’s staff
sells the farm produce, organic eggs, and coffee beans in a stall at the Summit
Ridge Promenade, the commercial center within the Summit Ridge hotel complex
in Tagaytay City. The SSCF is also open for tourists.
Last December 2013, Sweet Spring Country Farm was featured in Kris
TV, a famous reality show of ABS-CBN, which makes the farm more known in
the industry. In January 2014, the farm started producing their new product,
Coconut Vinegar, which was named “KaKiko”.
Mesa, a chain of restaurants serving modern Filipino cuisine became a
partner of Pangilinan. As of 2015, the branch of the said restaurant in Tagaytay
City opened and the farm became a supplier of native pigs.
Sweet Spring Country Farm started its production of native swine on 2012
with five native sows and one native boar; it was only raised for food of the
Pangilinan family. Later on, Mr. Pangilinan noticed that the pigs multiplied fast
which was unexpected. The Sweet Spring Country Farm started to sell its native
pig in 2013. They started to supply meat toAlabang and walk-in buyers who had
gone to the farm.
7
Presently, the Sweet Spring Country Farm supplied Mesa, a chain
restaurants serving modern Filipino cuisine. The said restaurant buys live weight
native pigs for about 4-5 kilograms for Lechon De Leche in their menu.
Sweet Spring Country Farm as an integrated farm has several organic
products that are produced. Reflected in Table 1 are the various products
produced by the farm with the corresponding month and year that the product
started. The major events in SSCF are shown in Table 2.
Table 1. Sweet Spring Country Farm ProductsPRODUCT MONTH/YEAR STARTED
Lettuce April 2012Herbs April 2012Organic Native Swine May 2013Coffee production April 2012Traditional Vegetables April 2012Coconut Vinegar Proccesing October 2013
Table 2. Sweet Spring Country Farm Key EventsYEAR EVENT2012 - Sweet Spring Country Farm started
its farm operation.- Supplier of Highlands, Bag of Beans Restaurant, Pamana Restaurant and Alabang Village.
2013 - Sweet Spring Country Farm was featured in Kris TV, a reality show in ABS-CBN.
2014 - Became a fieldtrip site on Training Course on Organic Agriculture and Agro-Tourism Development.
2015 - Became the supplier of Live organic native pig of Mesa.
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Location and Physical Layout
Sweet Spring Country Farm is located in the cool, windy and hilly upland
ofSitioBigtasin, Kaysuyo, Alfonso, Cavite (Fig.1). The farm is located near
Tagaytay and is only 20 minutes’ drive from the city proper and 40 minutes travel
from Alfonso proper. Some nearby places for tourist are Twin Lake, Sky Ranch,
Splendido, Peoples Park and different restaurants.
The farm has nearly three hectares of land and it is utilized by planting
several plants and crops and raising livestock. A variety of lettuce and herbs are
planted in the 1,817 m2 and 1000 m2areasrespectively. In addition, 1,066 m2land
area is planted with variety of traditional vegetables. A total of1,456 coffee trees
are also planted all over the farm and native pigs are raised in 1,000 m 2 area.
The farm also had a local breed of chickens, rabbits, carabao which is named
Berky, and others. Banana, mango, cacao trees and any other fruits are also
being planted in the farm premises. The buildings which served as working areas
for different products were distributed in the entire area (Fig.2).
The organic native swine housing covered 1,000 m2 of the total land area
of the farm (Fig 3). A total of nine well-defined sections of the native swine
housing facilityserved as the breeding section, lactating section, gestating
section, fattening section, isolation section and the food preparation area. Each
pen is furnished with durable plastic feeding troughs and waterers for a
continuous supply of fresh water given especially during hot season. SSCF
followed the standard pen size as what the International Training Center on Pig
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Husbandry set. There are two sections for the fattening area. It has a length of
6m and width of 3 m, 15 piglets are being placed in one fattening section.
Breeding and lactating section have also the same pen size with the
fattening section. The breeding section is where the sow and boar are kept for
mating. This area must be kept clean. Lactating section is where the newly
farrowed sows are being placed with its suckling, suckling period is about 28
days after parturition. After the suckling period, the piglets must be wean, but due
to the lack of pens the sow are the one transferred and the piglets stays in the
lactating pen for about 30-40days.When the pigs reached 40 days, they are
transferred in the fattening section.
The gestating section has a pen size of 24m in length and 5m in width. It
has the largest pen size because during farrowing,all operations such as tail
docking, tooth clipping and castration are being performed here.
The food preparation area is a nipa hut. A large barrel is placed in this
area where the mixture offood is being boiled until tender.
The slaughter area is made of steel and has cementflooring; this is where
pigs that are ready to slaughter are being held to avoid the mud-like smell of the
pig. The pig is held for at least two weeks before it is being slaughtered and are
being fed with the same food. They are regularly being washed by clean water
until the mud-like smell will be gone.
Isolation areais divided into two sections. This is where pigs that have
infections or diseases are being place.
10
The native pig’s housing was bounded by an electric fence to avoid them
from getting out of the fence. Convection type of roofing made of GI sheets was
used in housing to provide proper ventilation and enhance air circulation inside
the housing. The floor area of the pig housing was soil and at times a mixture of
soil and rice hull.There will be five sacks of rice hull placed in a one square meter
area.It was not cement because native pig will become weak since they are not
used to cement, they prefer soil instead. During hot season the soil are being
harvested and used as fertilizer.
11
Figure 1. Sweet Spring Country Farm Location Map
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Figure 2. Sweet Spring Country Farm Lay-out
13
Figure 3. Organic Native Swine Raising Area Layout
Facilities, Equipment, Machines and Materials
A good housing facility is a key to successful animal production. It should
be well protected from inclement weather conditions, thieves and predators, and
designed to provide for good ventilation and easy cleaning (PCARRD, 2004).
The facilities and equipment in the farm are fully utilized by the farm
workers for the different farm activities. Commonfacilities and equipment that are
used in the farm are reflected in Table 3. Facilities and equipment used in
organic native swine raising are shown in table 4.
Table 3. Common Farm Facilities and Equipment used in Sweet Spring Country FarmITEM QUANTITY PURPOSE/ USE
Shredder 1 Use for food preparation and composting purposes.
Shovel 7 Use in land preparation.
High performance sprayer
3 Used to spray plants and vegetables.
Seedling tray 50 Use in growing seedlings before transplanting
Weighing scale
2 Use to weigh the products, may it a vegetable or livestock products.
Rake 3 Use in land preparation activity.
Asarol 2 Use in clearing purposes.
Grasscutter 1 Use in cutting grasses for maintenance.
Sprinkler 30 Use in watering the plants.
Crates 50 Newly harvested lettuce, herbs and vegetables as well a meat cuts are being placed here.
Box 300 Use in coconut vinegar storing.
Cutting Knife 10 Use in harvesting lettuce.
Hose 3 Use to water plants.
15
Strainer 1 Coconut vinegar processing for straining purposes.
Storage box 20 For storing purposes.
Water Tank 1 Installed to supply all water needs.
Pump House 1 Storing area for the native swine feeds and other equipment.
Pick-up 1 Used as a service vehicle in the farm.
Nipa Hut 1 Serves as reception area to visitors who wanted to tour the farm.
Table 4. Facilities and Equipment used in Organic Native Swine RaisingITEM QUANTITY PURPOSE/ USE
Shredder 1 Use in cutting into pieces trunks, branches and leaves for food preparation.
Feeding troughs 16 This is where the food of the pig was being placed during feeding time.
Large Mixing Bowl
1 It is a barrel where the mixture of banana and jackfruit or any other available fruit are being boiled until tender.
Food Container 6 The banana and jackfruit are being placed here so that it will cool down before serving the food to the pigs.
Karet 2 It used in slicing the banana trunk into pieces.Long Laddle 1 It used in mixing the food boiled in the large
barrel.Karet 2 Use in chopping the banana trunk during food
preparation.
Big container 2 Foods of the pig are being place here after cooking for cooling off.
Electric Fence Used as the bounding material to keep the pigs inside the pen.
16
ORGANIZATION AND MANAGEMENT
Sweet Spring Country Farm was a corporationtype of business owned
by Senator Francis “Kiko” Pangilinan. The Sweet Spring Country Farm is
composed of a total manpower of nine employees distributed in different
positions. The farm is under the direct supervision of the farm supervisor, one
male employee is assigned to the livestock section, another male employee in
the traditional vegetables section and two employees assigned in the lettuce
production. One person is assigned for the maintenance of the farm. SSCF has a
farm driver, an accountant, and one employee on sales. Each individual position
in the organization has its own duties and responsibilities to undertake in the day-
to-day farm operations.
The organizational structure of the farm reflected the following positions:
the CEO, farm supervisor who supervises all the farm’s operations and at the
same time, a marketing manager who is responsible in marketingproducts ofthe
farm. The accountantis responsible for preparing the financial documents of the
farm.The production manager manages the production aspect of the farm and as
a guide for tourists visiting the farm. The ground maintenance is responsible for
technical maintenance and fixing of equipment and machineries. He is also the
driver responsible in delivering the ordered products.Another assignment of the
ground maintenance personnel is coffee production. The sales person is in-
charge of selling the products in the stall.
There are three farm workers who performedproduction activities like
managing the nursery production of lettuce, herbs and traditional vegetables and
17
maintaining the cleanliness of the farm’s surroundings. The organizational
structure of SSCF is shown in Figure 4. Table 5 shows the profile of SSCF
employees.
18
Figure 4. Sweet Spring Country Farm Organizational Structure
CEO
Farm Supervisor
ProductionSupervisor
Support Services
Accountant
MarketingSupervisor
Ground MaintenanceMarketing Assistant
Caretaker Driver
Workers
19
Table 5. Sweet Spring Country Farm Personnel ProfileNAME POSITION EDUCATIONAL
ATTAINMENT
LENGTH
OF SERVICE
RESPONSIBILITIES
Mr. Afriel M. Babaan Farm Supervisor
Marketing Manager
Bachelor of Science in Agriculture major in Horticuture
2 yrs. Supervise all the farm’s operations.
Manage the marketing aspect of the farm.
Mr. Carlo Jiminez Accountant Prepare the financial statements of the farm.
Mrs. RufinaTanamal Production Manager
Bachelor of Science in Agroforestry
1 yr. and 6 months
Manage the production aspect of the farm.
Mr. Marlon Pilao Worker High School 6 months Performed farm production activities; specifically assigned on the production of Lettuce and the nursery.
Mr. Mario Ligsa Ground Maintenance
Worker
High School 3 yrs. Responsible for maintaining the cleanliness of the farm’s surroundings.
Execute farm production activities focused on the herbs’ production.
Mr. Teddy Bauyon Maintenance High School 3 yrs. Responsible for technical maintenance and fixing of equipment and machineries.
Responsible for delivering the productorders.
20
Driver
Worker
Assigned on coffee production.
Mr. RandolfAlcantara Worker High School 1 yr. Performed farm activities specifically on the production of traditional vegetables.
Mr. BebotCaololan Caretaker
Worker
High School 3 yrs. Responsible on watching the entire farm.
Assigned on the production of coconut vinegar and of raising native pigs and chicken.
Ms. LeonisaCaololan Sales Person High School 3 yrs. In-charge on selling the products in the stall.
21
Employees’ Compensation, Benefits and Incentives
The workers received corresponding salaries depending on theirassigned
task and position. The farm supervisorreceived a higher salary rate around Php
15, 000 – 20, 000 per month. The production manager received Php 9, 880 per
month. The casual employees such as production workers received Php 250 per
day or Php 6, 500 per month. Other corresponding salaries for specific workers
are shown in Table 3.
Employees of the farm have benefits like SSS, 13th month pay and
PhilHealth. However, some employees have free rice and housing such as the
caretaker and some production workers. In addition, the employees received
incentives such as Christmas party during December as a get together and raffle
draws. Aside from that, bonuses were also given to employees as for payment to
their loyal services to the farm.
22
Table 6. SSCF’s Employee’s Compensation, Benefits and IncentivesNAME POSITION MONTHLY
SALARY (Php)BENEFITS/ ALLOWANCES INCENTIVES
Mr. Afriel Babaan Farm Supervisor & Marketing Manager
15, 000 - 20, 000 SSS, PhilHealth, 13th month pay Christmas Bonus and Raffles
Mr. Carlo Jiminez Accountant Confidential SSS, PhilHealth, 13th month pay Christmas Bonus and
RafflesMs. RufinaTanamal Production Manager 9, 880 SSS, PhilHealth, free housing Christmas
Bonus and Raffles
Mr. BebotCaololan Caretaker & Worker 7, 000 PhilHealth, 13th month pay, free housing and 1 sack of rice monthly
Christmas Bonus and Raffles
Mr. Mario Ligsa Worker & Ground Maintenance
6, 500 SSS, PhilHealth, 13th month pay Christmas Bonus and Raffles
Mr. Teddy Bauyon Technical Maintenance & Driver
7, 410 SSS, PhilHealth, 13th month pay Christmas Bonus and Raffles
Mr. Marlon Pilao Worker 6, 500 free housing Christmas Bonus and
RafflesMr. RandolfAlcantara Worker 6, 500 Free housing Christmas
Bonus and Raffles
Ms. LeonisaCaololan Sales Person 2, 400 SSS, 13th month pay, free housing and 1 sack of rice monthly
Christmas Bonus and Raffles
23
Management Practices and Policies
There are various rules and regulation that the workers should follow for
the purpose of promoting a more harmonious relationship between the farm
workers and the farm management. It is for them to be guided regarding their
behaviors and attitudes in doing the tasks assigned to them. Management rules
and regulations were as follows:
1. Cleanliness and orderliness in the farm should be maintained.
2. Sleeping during working hours is restricted.
3. Absence may be considered if permission had been asked during
illness and other emergency cases.
4. Workers are being granted for a vacation leave if and only they were
granted with their Leave of Absence Letter.
5. Workers that stayed outside of the farm premises must come to the
farm at exactly 7:00 in the morning.
6. For proper attendance monitoring, employees are required to log in
upon reporting to work and log out after work using a Bundy Clock.
Evaluation and Regulation
1. First six months of employees is what they called probation period,
he/she is being monitored in his/her work.
2. After six months the employee is then to be promoted for
regularization.
3. After the regularization the employee was being increased its salary.
24
Work Schedule
The farm workers are required to work at least 8 hours a day from
Monday to Saturday. Workers started at 7:00 A.M. until 10:00 followed by 15
minutes break. Work resumed at 10:16 A.M. and ended at 11. Lunch break was
allotted one hour. In the afternoon, work started at 1 P.M. until 3:00 P.M. followed
by 15 minutes break time. Work resumed at 3:16 P.M. and ended at 5 P.M. All
farm workers were given one day off every week.
25
PRODUCTION
Sweet Spring Country Farm was an integrated farm engaged in organic
production of lettuce, herbs, traditional vegetables, coffee, coconut vinegar and
native swine. There are also a few numbers of chickens in the farm.
Out of the three hectares land area, 1,000 m2is used for the native swine
housing. Sweet Spring Country Farm started raising organic native swine in 2012
and they started selling organic swine products in 2013. The production of native
swine in the farm is mainly for meat purposes. They sell live organic native
swine, meat cuts and Lechon. It takes three to four months to grow ready for sale
live organic native swine.
The sows in the farm are from SilanAgri-Farm owned by Mr. Eddie Silan
and the boar is from a farm in Bulacan. The sows in the farm areone to two years
and the boar is one year old.The farm inventory of the different classes of native
swine is presented in Table 7.
Table 7. Native Pig population in the Sweet Spring Country Farm as of January 2015
CLASSIFICATION OF ANIMALS POPULATIONSow 6
Boar 1
Medium Size(15 kg.)
25
1 month 51 week 6Isolated 3
For Slaughter 4Total 50
Source: Sweet Spring Country Farm Records
SSCF had no detailed record for their monthly production schedule.
Instead, SSCF gave the apprentice a monthly average for their target production
26
as well as actual production during the interview (Table 8.). The table shows that
Live Organic Native Pig had the higher production target. It is because Mesa, a
chain of restaurant in Tagaytay is a regular buyer. Every week they purchased a
maximum of five live organic native pigs. It was shown in Table that the farm’s
production was not met. There are a total of 14 heads that SSCF wasn’t able to
produced.
Table 8. Organic Native Swine Monthly Average Production as of January 2015
ProductionTarget
ActualProduction
Deviation
Live Organic Native Pig 20 heads 11 heads 9
Meat Cuts 8 heads 5 heads 3
Lechon 4 heads 2 heads 2
Sources: SSCF Farm Interview
Sources and Procurement of Inputs
SSC Farm acquired its sow and boar from SilanAgri-Farm owned by Mr.
Eddie Silan and from a farm in Bulacan. These were raised as parent stocks. The
farm uses organic feeds for the weanlings. When they become bigger (15-20
kilograms or about 40 days after weaned) they were being feed with the organic
food prepared in the farm. The food is personally made by the caretaker. The
farm buys the rice bran every Monday from Ranchero Mill Feed in Mendez
Crossing and the feeds are purchased from Santeh Feeds Corporation in
Calumpit, Bulacan. The veterinary supplies were procured at an Agrivet store in
Mendez Crossing.
27
Table 9. Sources and Procurement of Inputs in SSCF.INPUT SOURCES FREQUENCY/
VOLUME
PURCHASE
Feeds Santeh Feeds Corporation
Once a month/
1 sack
1300 Php/Sack
Rice Bran Ranchero Mill Feed
Once a week/
1 sack
630 Php/sack
Veterinary Supplies
Livestock Master Once a month 1000/per purchase
Source: Sweet Spring Country Farm Records
Meat cuts and Lechon are two other products that are produced in Sweet
Spring Country Farm from its organic native swine raising. Table 10 shows the
different inputs needed in producing these products.
Table 10. Other InputsType of Input Frequency OfUse Quantity Needed Quantity Used
Knife Once a week 1 piece 1 piece
Transparent plastic
Once a week 1 bag 1 bag
Disposable gloves
Once a week 3 pieces 3 pieces
Long Bamboo stick
Twice a month 1 piece 1 piece
Barbed Wire Twice a month 1 meter 1 meter
Charcoal Twice a month 2 sacks 1 and a half sacks
Lechon tray Twice a month 1 piece 1 piece
Manila Paper Twice a month 2 whole piece 2 whole piece
28
Figure 5.Organic Native Swine Production Process Flow Chart at SSC Farm.
29
Organic Native Swine Production Activities
In-breeding is the type of breeding practiced in the farm. It is themating
between individuals of the same breed but which are more closely related than
the average of the breed.A good boar is the one coming from a sow that has a
litter size of 10 or more and eight or more pigs weaned. SSCF used only one
boar for breeding. The natural method of breeding was used in reproduction of
pigs in the farm. Unlike other breeds of swine, native swine aren’t bathed
together to regulate body temperature. The boar was being transferred to the
sow’s pen where the mating takes place. It is best that breeding will take place in
the afternoon at around 4:00 o’clock and a follow-up breeding next day at the
same time.
Raising of organic swine at SSCF is presented in Figure 5. Farrowing is
the process of giving birth of a mother sow to a number of piglets. This was most
critical operation in the farm that needs attention and good management. When
the sow or gilt was about to farrow, signs were being observed such as swelling
and reddening of vulva, mucus discharge and secretion of milk. If the sow/gilt
experienced difficulty in delivering, the caretaker would give assistance to the
delivering sow. Each piglet that was delivered was handled carefully and wiped
with clean soft cloth to remove the transparent fetal membrane that cover the
entire body of the piglet. Wiping the nose was also done to prevent difficulty in
breathing.After the placenta has been properly disposed, the farrowing pen was
kept clean and dry.
30
Weaning is the process of separating the piglets from its mother sow.
Piglets must be weaned 28-30 days or one month after parturition. Due to lack of
pens in the organic native swine housing, the sow is the one transferred to
another pen instead of the weanlings.
Fattening is the process of feeding the hogs with organic food until they
are ready to market. When the weanlings reached 15-20 kilograms or about 30-
40 days after weaning, it is then transferred to a fattening pen. A maximum of 15
piglets are housed per pen.The ideal weight of native pig for slaughtering is
between 40-50 kilograms. It is achieved after three to four months
The farm conducted culling to maintain productivity and cost efficiency.
There are indicators followed in culling. The farm only culled sow if the sow does
not get pregnant after breeding it twice. A boar is culled if it has physical defects,
not aggressive and infected by disease. Before the culled boar will be
slaughtered, it will be castrated first to remove undesirable odour of the boar that
would stick to the meat. The production activities at SSCF are summarized in
Table 11.
Table 11. Production Activities at Sweet Spring Country Farm (Organic Native Swine Raising)
ACTIVITY DESCRIPTION DURATION NUMBER OF PERSONNEL
INVOLVEDBreeding It is the process
of reproduction between a sow and boar in producing an offspring.
2 to 3 hours 2
Farrowing It is the process of giving birth of a mother sow.
3 hours or more
2
31
Table 12. ContinuedTail Docking
It is the cutting of tail of the piglets.
2 hours 2
Tooth clipping Trimming of the piglet’s teeth.
2 hours 2
Weaning The transfer of the young piglets to other pen.
3 hours 3
Food Preparation
Cooking of food for the pig. 2 hours 1
Castration It is the removal of testicles of the pig.
3 hours 2
Vaccination Giving of vaccines to the pig to prevent diseases.
2 hours 2
Culling The process of removing or segregating animals from a breeding stock.
2 hours 2
Source: Sweet Spring Country Farm Records
Organic Native Pig Meat Products
SSCF manufactured meat cuts based from orders. The farm management
set a production target of eight live organic native pig to be slaughtered a month.
This live organic native pig weighs 40-50 kilograms. Slaughtering is done in the
farm, early in the morning. Before a pig is slaughtered, it is held in the
slaughtering pen two weeks before slaughter to avoid the muddy smell of the pig.
When the slaughtering is done, the carcass is being chopped into varying
cuts like Pork chop cut, “ButoButo”, Head meat and Liver and other internal
organs.After preparing the meat, the cuts will be segregated and then weighed
according to the weight of the orders. All the different meat cuts will be packed
with transparent plastics with sizes depending on the weight.
32
Native Lechón was cooked in Sweet Spring Country Farm.Native breeds
are said to have the most delicious and tender carcass when it is cooked for
Lechon. The farm only cooked Lechon based on orders from the customers. The
customers are the one who will chose the pig that will be cooked. After the pig
was slaughtered, it is then put in a long bamboo stick, its stomach was stuffed
with lemon grass and secret herbs and spices that give it a distinct richness in
flavour. Right after the seasoning, the pig’s stomach is being sewed to ensure
that the seasoning remained in the pig’s stomach.
Traditional cooking of Lechon is practiced the farm. The cooking area for
Lechon is the empty pen of the composting area. The place is filled with
charcoal. The slow roasting process is tedious and laborious, as the pig is
manually turned based on the experienced eye of the lechonero. The lechon is
then basted with a marinade of secret herbs and spices during the roasting
process, adding to the layers of flavours.As the lechon is slowly turned, the
intense heat from the charcoal adds yet another layer of flavor.The process of
cooking and basting usually results in making the pork skin crisp and is a
distinctive feature of the dish.The pig is roasted on all sides for several hours
until done. Once the cooking is done, the Lechon is wrapped with a manila paper
and is placed in Lechon tray, ready to be delivered.
33
Table 12. Production Activities at Sweet Spring Country Farm (Organic Native Pig Meat Products)ACTIVITY DESCRIPTION HOUR PERSONNEL
INVOLVED IN THE ACTIVITY
Primal Cutting It is the process of separating the main parts of the pig. It is done so that chopping for the meat cuts will be easily done.
1 hour 1
Chopping It is the cutting of the primal parts into definite meat cuts.
2 hours 1
Weighing The process of weighing the meat according to the cut and according to the weight of the orders.
1 hour 2
Packing Putting of meat cuts into the plastics.
1 hour 3
Seasoning Stuffing the pig’s stomach with herbs and spices.
30 minutes 1
Slow-Roasting The process of cooking the Lechon in a low charcoal heat.
3 hours 1
Basting The process of moistening the pig’s body with a marinade of secret herbs and spices during the roasting process.
3 hours 1
34
Cultural Management Practices
Good management practices are fairly executed in Sweet Spring Country
Farm. The practices set by the farm management are being followed to ensure
good production in the native swine division.
Pregnant sows/gilts were fully attended to assure birth of the piglets.The
gestation period of sow takes four months. During the three months and one-
halfgestationperiod, gestating food of one and one-half kilos was given. Two
weeks before the expected farrowing date, gestating food is reduced to one kilo
and on the day of delivery, no gestating food is given because it affects the litter
size.Two weeks before parturition, the pregnant sows or gilts were transferred to
the farrowing area. The flooring must be covered with banana leaves where the
sow can lay down.In preparation for the labor, great care and attention was
necessary for the animal to have a smooth delivery. When the sow or gilt was
about to farrow all the paraphernalia are being prepared like thread, clean cloth,
betadine and surgical scissors.
An average of 6 piglets is being delivered by a native swine. To provide
suckling with adequate milk, no food was given to the sow up to 12 hours after
farrowing. Three days after parturition, the piglets were given iron to prevent
anaemia. The tail of the piglets was being cut three inches from the base right
after the sow gave birth. The sharp teeth of the piglets were cut right after giving
birth of the sowto avoid injury on the teats of the sow. Castration was performed
for piglets aging two weeks after giving birth. This was done in the afternoon right
after feeding. The paraphernalia used were blade, cotton and betadine.
35
When piglets are weaned aside from the sow’s milk, piglets were also
given prolean feeds until they reached the age of 55 days, it is because they
were not capable of chewing food prepared by the caretaker. Piglets will be feed
with two kilograms of organic feeds per day, they were fed twice a day. When the
wealings reached the weight of 15-20 kilograms, it is then transferred to the
fattening pen.
Fatteners are being feed twice a day with the food prepared in the farm.
They were also provided a snack in the afternoon. The farm workersalways see
to it that feeding troughs and waterers are washed every before feeding.
Feeding Management
The pigs were being feed at 7 o’clock in the morning and 4 o’clock
in the afternoon with the prepared food. They were also feed with lettuce
at 2 o’clock as a snack.
Sweet Spring Country Farm prepares its own food for the pig to
ensure that the raw material used in making the food is organic and is
cheaper. The food was a mixture of Banana stalk chopped into pieces and
chopped jack fruit which was boiled until tender (Figure 6). The boiled
chopped banana and jack fruit will be mix with Rice bran and Effective
Micro Alternative Solution(EMAS), a solution mix in the pig’s food to limit
the bad odour of the pig’s manure. Lettuce plants are also fed to the pig as
snack.Organic feeds like feed pro were used in feeding the piglets.
36
Figure 6. Boiled Chopped banana stalks and jackfruit and Rejected Lettuce as feeds for native pigs
Vaccination Program
Hogs in the farm were resistant to parasites and diseases. So they
were only given some vaccines. Newly born piglets are being injected with
Iron; it is injected to prevent anaemia for piglets and Oxytocin for uterine
and milk gland stimulator. The vaccines were injected using disposable
plastic syringe.
Table 13. Vaccination in Organic Native SwineCLASSIFICATION
OF PIGS
VACCINE
USED
DOSAGE IMPORTANCE
Piglet Iron 1ml per piglet Prevent anaemia for piglets.
Pregnant sow Oxytocin 2ml per sow Improves uterine and milk
gland functioning.
37
Quality Control
Sweet Spring Country Farm ensures that they are producing live organic
native swine through the type of food and veterinary medicine that were given to
the pig. The farm sees to it that the food that is prepared for the pigs are
organically grown and come from the farm itself. The preparation of the food is
done in the farm to ensure that no other inorganic materials are mixed. Other
inputs or ingredients that are mixed to the pig’s food are Rice bran which comes
from a milling station in Mendez crossing. Feeds given to the piglets are
produced by an organic processing firm. The veterinary supplies that the farm
used are synthetic medicines that are used only if the pigs have disease that
cannot be cured by natural techniques.
Waste and Sanitation Management
One of the major problem facing livestock producers is the management
of animal waste. SSCF converts its agricultural waste into useful products such
as fertilizer. At the farm, the soil with pig manure was collected and is utilized as
fertilizers for the lettuce and herbs that are grown in the farm. Cleaning of pens,
feeding troughs and water is also a daily routine.
38
MARKETING
Marketing the products was not a problem of the farm because it has
regular buyers. Their clients are usually coming from Alabang, friends of the
Pangilinan family, tourist in the farm and the recent client is the Mesa Tagaytay.
Products in the farm are also sold in the farm stall located in Robinson’s
Tagaytay.
Product
The major product of the farm is the live organic native pig. SSCF is the
major supplier of live organic native pig to Mesa, a chain of restaurants serving
modern Filipino cuisine. Each live pig weighs 5-7 kilograms which was delivered
to mesa. Native pork meat is proven to have a good quality of carcass. Other
products were the meat cuts and lechon. Lechon were sold at the age of three
months and with an average of 30 kilograms. The meat cuts are from four
months and with an average of 40-50 kilograms.
Table14. Organic Native Swine ProductsPRODUCT DESCRIPTION
Live Organic Native Pig Pig aging with a corresponding weight of 5-7 kilograms sold to mesa.
Meat Cuts The varying cuts of the pig meat. These are the head meat, meat from the head of the pig, Pork chop cuts, are meat from the loin, ButoButo are bones of the pig with a little meat attached to it, Spare ribs are taken from the pig's ribs and the meat surrounding the bones and the liver and intestines are from the entrails of the pig.
Lechon A roasted pig which is stuffed with herbs and spices in its stomach.
39
Pricing
The prices of hogs varied on their total live weight. The price of the meat
products depends on the parts of the meat plus the cost of production. The price
also changes based on the demand and the cost of inputs. For the customers
who ordered lechon, the customers will pay based on the live weight of the pig,
which is Php150 per kilo, plus Php1,000 for the slaughtering and cooking.
Products with the corresponding prices are shown in the Table 15.
Table 15. Prices of the different Organic Swine Product in SSC FarmPRODUCT PRICES
Live Weight Php150 per kg. live weight
Pork Chop Cut 180
“ButoButo” 150
Head Meat 150
Liver 180
Spare Ribs 150
Place of Distribution
Products produced in the farm were marketed throughout Cavite and
some of its neighbouring provinces. The general target market of the farm
ishealth conscious individuals who patronize organic foods. The farm doesn’t
have middle men instead they contact customers on their own. Based on the
sales, live native pig sales comprised 70%, of which 90% were sold to
Mesachain of restaurants, and 10% were sold to walk-in buyers. The meat cuts
which consisted 25% of total sales were sold to the regular buyers from Alabang
40
(55%) and 45% were sold to the walk-in buyers. Lechon comprised 5% of the
sales,85% of which is sold to Alabang and 15% to walk-in buyers. Percentage of
the product distribution is shown in Figure 7.
41
Figure 7. Distribution Channel of SSCF’s Organic Native Swine Products
Promotion
Sweet Spring Country Farm
Live Native Pig
70 %
Mesa Restaurants
90%
Alabang
55%
Farm
Walk-in
Buyers
10%
Alabang
85%
Meat Cuts
25%
Lechon
5 %
Farm
Walk-in
Buyers
10%
Farm
Walk-in
Buyers
10%
42
The Sweet Spring Country Farm products were promoted through
promotional tools like social media, magazines, pamphlet and sometimes ‘Word
of Mouth’ from their well satisfied customers and buyers. As observed, social
media is the most effective promotional method of the farm. Almost all the tourist
who visited the farm said that they discovered the farm through television, when
the farm is featured in Kris TV, a reality show in ABS-CBN (Fig.8).
Figure8. Promotional tools used in Sweet Spring Country Farm
43
FINANCING
Sweet Spring Country Farm was a corporationtype of business owned by
Senator Francis “Kiko” Pangilinan. It is an integrated farm which was established
in 2012. As an integrated enterprise, the financial statements of the farm reflect
the performance of the entire business and not that of the individual product
lines.
To analyse the financial position and operational performance of the farm,
its financial statements were subjected to analysis. The farm was not able to
submit the Balance Sheet, hence the Income Statement in 2013 and 2014 were
subjected to vertical and horizontal analysis. Selected financial ratios were also
computed.
Financial Analysis
Financial analysis involves calculation and interpretationof financial ratios
in order to assess the firm’s financial performance and status. To determine the
company’s financial standing, past performance was compared with those of
current financial statements using horizontal and vertical analysis.
The Comparative income statement of Sweet Spring Country Farm
indicates that the farm hasn’t totally generated profits from the farm operations. It
is a known fact that the farm is still new, hence the said financial performance.
44
Table 16. Comparative Income Statement of Sweet spring Country Farm.2013 2014
Sales 1, 281, 886 1, 103, 795
Cost of Sales
Farm Inputs 81, 856 57, 288
Direct Labor 442, 834 440, 777
Overhead 119, 911 108, 375
Others 221, 533 178, 393
TOTAL 866, 134 784, 833
GROSS PROFIT 415, 752 318,962
GENERAL & ADMINISTRATIVE EXPENSES
Salaries & Allow 255, 200 281, 362
Employee Benefits 73, 187 88. 900
Utilities 13, 171 19, 725
Repairs & Maintenance 70, 237 47, 949
Rental 58, 240 68, 880
Supplies 122, 059 177, 176
Fuel & Oil 96, 368 115, 271
Selling Expenses 54, 469 74, 471
Taxes & Licenses 2, 275 9, 048
Transportation Expense 6, 009 6, 348
Miscellaneous 114, 167 103, 963
TOTAL 865, 382 993, 093
NET OPERATING INCOME/ LOSS (449, 630) (674, 131)
45
Horizontal Analysis
Horizontal analysis was an important tool used to determine the historical
financial trends of the business. It usually emphasized financial changes over a
period of time whether there was an increase or decrease of revenue, expenses
and other financial statements items.
Sweet Spring Country Farm income statement (2013-2014) revealed that
there was a 49.9%decrease on the farm’s total net income. One of the reasons
for the decrease in profits was the losses from the destruction of typhoon Glenda
which hit Cavite in August 2014.The sales decrease by Php 178,091 or 13.9%
while its operating expense increased by Php 127,711 or 14.8%.
The increase in operating expense was attributed to the increase in
utilities expense(49.8%), repairs and maintenance (31.7%), supplies (45.2%) and
taxes and licenses (298%). The increase in utilities was due to the frequent use
of water for the plants especially in the lettuce production. The increase in
supplies is due to the price hike of materials needed. Taxes and licenses also
increased due to the newly acquired permits. Repairs and maintenance
decreased by year 2014 since the farm made their major repairs by the year
2013.
46
Table 17. Horizontal Analysis of Comparative Income Statement.2014 2013 INCREASED
(DECREASED)
AMOUNT
%
Sales 1, 103, 795 1, 281, 886 (178,091) (13.9)
Cost of Sales
Farm Inputs 57, 288 81, 856 (24,568) (30.0)
Direct Labor 440, 777 442, 834 (2,057) (0.5)
Overhead 108, 375 119, 911 (11,536) (9.6)
Others 178, 393 221, 533 (43,140) (19.5)
TOTAL 784, 833 866, 133 (81,300) (9.4)
GROSS PROFIT 318,962 415, 752 (96,790) (7.6)
GENERAL & ADMINISTRATIVE EXPENSES
Salaries & Allow 281, 362 255, 200 26,162 10.3
Employee Benefits 88. 900 73, 187 15,713 21.5
Utilities 19, 725 13, 171 6,554 49.8
Repairs & Maintenance 47, 949 70, 237 (22,288) (31.7)
Rental 68, 880 58, 240 10,640 18.3
Supplies 177, 176 122, 059 55,117 45.2
Fuel & Oil 115, 271 96, 368 18,903 19.6
Selling Expenses 74, 471 54, 469 20,002 36.7
Taxes & Licenses 9, 048 2, 275 6,773 298
Transportation Expense
6, 348 6, 009 339 5.6
Miscellaneous 103, 963 114, 167 (10,204) (8.9)
TOTAL 993, 093 865, 382 127,711 (14.8)
NET OPERATING INCOME/ LOSS
(674, 131) (449, 630) (224,501) 49.9
47
Vertical Analysis
Vertical analysis is one of the methods in analysing financial statements.
In this method, each figure or account was compared to single account in the
financial statement that commonly called as the base. Each account was
reported as percentage of the base account. In the SSCF income statement,
each account was expressed as percentage of the total sales.
In 2013, the farm’s cost of sales is 67.6% and the gross profit is 32.4%.
The following year, the farm was not able to manage their cost better because
the cost of sales was 71.1% and the income was only 28.9%.
The firm’s revenue were mostly used to pay up salaries and allowances
(25.5%) in 2014 and (19.19%) in 2013; supplies (16.1%) in 2014 and (9.5%) in
2013; and fuel and oil (10.4%) in 2014 and (7.5%) in 2013.
The total operating expense of the farm in 2014 is 90% of sales and more
than 60% of these expense were not covered by the remaining gross revenue.
Net income was -61.1%.
The previous year (2013) also posted a negative bottom line because the
operating costs (67.5%) was not covered by the 32.4% gross margin resulting to
a net income of -35.1%.
48
Table 18. Vertical Analysis of Comparative Income Statement.2014 Percent
%
2013 Percent
%
Sales 1, 103, 795 100 1, 281, 886 100
Cost of Sales
Farm Inputs 57, 288 5.2 81, 856 6.4
Direct Labor 440, 777 40.0 442, 834 34.5
Overhead 108, 375 9.8 119, 911 9.4
Others 178, 393 16.1 221, 533 17.3
TOTAL 784, 833 71.1 866, 134 67.6
GROSS PROFIT 318,962 28.9 415, 752 32.4
GENERAL & ADMINISTRATIVE EXPENSES
Salaries & Allow 281, 362 25.5 255, 200 19.9
Employee Benefits
88, 900 8.1 73, 187 5.7
Utilities 19, 725 1.8 13, 171 1.0
Repairs & Maintenance
47, 949 4.3 70, 237 5.5
Rental 68, 880 6.2 58, 240 4.5
Supplies 177, 176 16.1 122, 059 9.5
Fuel & Oil 115, 271 10.4 96, 368 7.5
Selling Expenses 74, 471 6.7 54, 469 4.2
Taxes & Licenses 9, 048 0.8 2, 275 0.2
Transportation Expense
6, 348 0.6 6, 009 0.5
Miscellaneous 103, 963 9.4 114, 167 8.9
TOTAL 993, 093 90.0 865, 382 67.5
NET OPERATING INCOME/ LOSS
(674, 131) (61.1) (449, 630) (35.1)
49
Financial Ratio Analysis
Financial ratio analysis involves the method of computing and interpreting
financial ratios to evaluate the performance and status of the company in a
certain period of time. Financial ratio analysis serves as the basis for the
management in making future decision and actions. It serves as the barometers
of financial health and stability. Industry averages or standards are one of the
basis of comparison in assessing the financial performance of the firm/company.
Profitability Ratio
Profitability is an indicator of the efficiency with which the
operations of the business were carried on. The profitability ratios that
assess the farm’s profitability were the net profit margin and the gross
profit margin.
The farm’s gross margin was 32% and 29% in 2014 and 2013,
respectively. The farm was unable to manage its cost of sales well, hence
the computed gross profit. The farm had a negative bottom line for the
consecutive years, 2014 being worse than 2013. Net profit margin was -
61% in 2014 and -35% in 2013.
Table 19. Computed Profitability Ratios of Sweet Spring Country Farm 2013-2014
Ratios Year
2013 2014
Net Profit Margin -35% -61%
Gross Profit Margin 32% 29%
50
APPRENTICESHIP PROPER
Areas of Apprenticeship and Description of Activities
An apprenticeship study was designed to provide the student with
opportunities to gain experience and deeper insight in running a business by
working in an agribusiness firm. It was an opportunity for the student to be a part
of the operations of Sweet Spring Country Farm. Knowledge gained from the
academic field was applied and put into action enhancing the total apprenticeship
experience.
Organization and Management
During the two-month apprenticeship, the apprentice learned the
organizational structure of the farm as well as the different positions and
assigned task. The apprentice was also given the chance to get acquainted to
the farm workers. The apprenticealso participated in the observation of a
neighbouring farm, the Costales Nature Farms for their practices. Such practices
are adapting to urban gardening, using of plastic bottles as a container for
planting so that the place will be maximized and organic fertilizer making
practices among others.
Production
The apprentice participated in the different activities and practices in the
production aspect of the farm. Through actual participation, she learned and
acquired actual experience in food preparation for the swine, feeding the hogs
51
and cleaning.The apprentice was able also to participate in lechon cooking,
stuffing the herbs and spices and the duration of cooking. In the production of live
organic native swine, the apprentice was able to observe during the farrowing of
the sow but was not allowed to do the hands-on. But the caretaker allowed the
apprentice to participate in injecting iron for the piglets. The apprentice also
participated in the inventory of the native swine. Executing various activities on
lettuce, herbs, coffee, traditional vegetables and vinegar processing was also
experienced by the apprentice. This includes land preparation and transplanting
in lettuce, potting of herbs for the Christmas season, planting of additional coffee
trees, harvesting of cucumber and beans, and straining and packing of coconut
vinegar.
Marketing
In marketing of farm products, the apprentice was required to participate in
the selling of the products in the Farm Stall located at Robinson’sTagaytay. The
apprentice participated in selling at least once a week.During the selling of farm
products in the stall, she was able to meet different customers. One one
occasion she was able to entertain a native of Iloilo by conversing with her in
English and also by using polite words. At the end the customer was satisfied
with the service that the apprentice offered to her, the customer gave a tip. The
apprentice was very thankful to the customer. From that experience the
apprentice was able to realize that good communication is what a good
52
businessman should have in order to communicate and understand the
customers. Using polite words are also a plus in entertaining the customers.
Financing
The apprentice was able to count cash from the sales of the farm products
and unsold products at the end of selling day at the stall in Tagaytay. From this
experience the apprentice learned that in counting money from sales, a person
must do it carefully. Re-checking is important so that errors will be prevented.
53
Table 20. Areas of Apprenticeship and Description of Activities at Sweet Spring Country Farm.
AREA OF APPRENTICESHIP AND ACTIVITIES UNDERTAKEN
DURATION
A. Organization and Management Assist in the inventory of the native swine’s
population.1hour
B. Production Cooking of Native swine food Cleaning the Native swine pen Injecting of Iron for piglets Feeding the native swine Assist in Lechon cooking Clearing the land for land preparation Plowing of land Land preparation Transplanting seedlings into plant cells Planting of seedling in plots Manual weeding and cultivation Watering of the plants with FAA and Power Grow Harvesting of plants Washing and selecting of harvested crops Weighing and packing of products Potting of herbs plant Assist in making papaya salad and pickles for
proposal product
20 hours
18 hours
2 hours
20 hours
2 hours
32 hours
5 hours
28 hours
2 hours
32 hours
45 hours
10 hours
10 hours
C. Marketing Selling of products at Robinson’s Tagaytay
31hours
D. Finance Inventory of unsold products Cash counts 1hour
1hour
54
COMPARISON OF THE FARM PRACTICES WITH INDUSTRY PRACTICE
The farm practices in Sweet Spring Country Farm were compared with the
standards set by the Organic Certification Center of the Philippines (OCCP);
OCCP was set as a benchmark for the comparison because this certification
center ensures the relevance of organic standards and the integrity of
certification process for the protection and guarantee of consumers and
producers.
Sweet Spring Country Farm, newbie in the organic business, wanted its
products to have an organic label. They plan to apply a certification for organic
products. Products sold in the market using an “organic” label by a recognized
certification program, adds value to the product. This requires a program of
regular inspection and certification as well as fulfilling any contractual regulations
of practices and processing. Such programs will help to build consumer trust
Table 21 shows the comparison of Sweet Spring Country Farm practices
in its major areas to the standard practices set by the OCCP.
55
Table 21. Comparison of Business Practices of the Farm and the Organic Certification Center of the Philippines StandardAREA OF OPERATION FARM PRACTICE ORGANIC
CERTIFICATION CENTER OF THE
PHILIPPINES STANDARDS
Animal Husbandry (Native Swine)
Breeds and Breeding - Native breed that could easily adapt to the environment.
-Natural reproduction was used.
- Breeds that adapt to local condition.
- Reproduction techniques should be natural.
Mutilation -Practice mutilation such as teeth clipping and tail cutting. The farm ensures that the activity will not hurt the piglets too much.
- Castration is done.
- Mutilations are not allowed like, tail cutting, cutting of teeth, ear notching and branding. Except when that activity isimproving the welfare, health or hygiene of the animals or for safety reasons.- Physical castration is allowed in order to maintain the quality of products.
Animal Nutrition -Use banana trunk and jackfruit as main ingredients for the pig’s food which are grown in the farm.
- Used feed pro an organic feed manufactured by ProNatural Feed Corporation a company that advocates natural hog raising in the
- Fed 100% organically grown feed of good quality and should come from the farm itself or be produced within the region.- Organic feed use should be made of by-products from the organic food processing industry.
56
Philippines.
Veterinary Medicine - Used iron for piglets to prevent anaemia.
- The use of synthetic drugs is allowed when no other justifiable alternatives are available.- Vaccinations shall be used only when diseases are known to exist in the region of the farm and cannot be controlled by other management techniques.
Transport and Slaughter
Housing
- Live organic native pig are being transported by putting them in a sack. Each pig is placed in individual large sack. Its hour of travel is in short time.
- The farm doesn’t use any stunning equipment. Instead they used knife for killing and bleeding.
- The organic native swine’s housing is a convection type of roofing that allows the air to circulate it is made of G.I. sheets that protect the native swine from the heat of the sun and rain. Its flooring are a mixture of rice hull and soil which allow the pig to exhibit their natural behaviour.
- The handling of the pig during transport shall be calm and gentle. The use of electric sticks and such instruments shall be restricted.
- The equipment used for stunning should be in good working order and should affect the deep laying parts of the brain in one (quick) act. Its proper functioning should be inspected regularly.
- Free range, open – air exercises areas, or open-air runs must, if necessary, provide sufficient protection against rain, wind, sun and extreme temperature, depending on the local weather conditions and the breed concerned.
57
Sweet Spring Country Farm degree of compliance to the set standard of
the Organic Certification Center of the Philippines is about 70%. It is because
almost the set standard are met by Sweet Spring Country Farm but there are
areas also that needs to be developed and improved to really fit the OCCP
standard.
Sweet Spring Country Farm hasn’t filed any organic certification yet, but
the farm is planning to apply. They wanted to have a certification so that they
could gain more customers of organically produced and health beneficial
products.
58
SWOT ANALYSIS
SWOT analysis involves determination and evaluation of the strengths
and weaknesses of a firm as well as its opportunities and threats. Through this
analysis, a firm would be able to know if it has strengths to match existing
opportunities and could plan how to face its threats to come up with the best
strategy that improves its operation.
Sweet Spring Country Farm had its own strength, weaknesses,
opportunities and threats. The farm strengths include the availability of water
source, a spring is located inside the farm so water is not a problem. Strategic
location was a plus because the farm is located near Tagaytay a famous tourist
destination. The owner of the farm is a celebrity, thus he has many contacts that
can be a potential customer and some professional expertise that could help him.
The topography as well as the weather in Alfonso is favourable of growing plants
and raising livestock.
Weaknesses of the farm are considered to be the hindrance to their good
productivity. The shortcomings of the farm if given enough action could be
converted into strengths. The weaknesses includes lack of collective expertise,
poor worker management, poor implementation of plans/follow-up, job
assignment is still in supervisory level means some of the workers didn’t do their
work assignment whenever no one is supervising them. Weak networking in
other neighbouring organic local farms, non-accreditation in organic farming and
weak sales and marketing.
59
Opportunities and threats are the external factors that would affect the
production of the farm. Farm’s opportunities areweekly inflow of tourists,
growingnumber of hotels and restaurants, public awareness/ greater public
interest in farming and growing demographics area for new markets (30% up).
These opportunities would help the farm to improve for future plans. However
there were factors in the external environment, which threatens the farm. These
are greater competition in the market and climate change.
Tables 22. SWOT Matrix of Sweet Spring Country FarmSTRENGTHS WEAKNESSES
Available water source Strategic location Celebrity owner Contacts Favorable weather Topography Professional support/ expertise
Lack of collective expertise Poor worker management Poor implementation of plans/
follow through job assignment in supervisory
level weak networking for other local
farms non-accreditation of organic
farming Weak Sales/ marketing
OPPORTUNITIES THREATS
Tourists inflow weekly Number of hotels and
restaurants Public awareness/ greater public
interest in farming Growing demographics area for
new markets (30% up)
Climate change (more rain, more heat, more typhoon)
Greater competition in the market
CASE ANALYSIS
60
Point of View
The point of view taken was that of Mr. Afriel M. Babaan the farm
supervisor whom the in-charge of all the farm operations. He is responsible in
determining the problems and implementing suitable solutions especially in the
livestock section.
Relevant Case Facts
Sweet Spring Country Farm has a total land area of three hectares. As of
December 2014 inventory, the total land area covered by the native pig
production is only 1000 square meters and they have a total population of 50
heads as of January 2015.
Native swine production started in May 2013 with a small investment. As
of January 2015, SSCF had an average of 14 live organic native pigs which did
not meet the 32 live organic native pig’s targeted production. SSCF had difficulty
in meeting the demand of the customers. The boar to sow ratio in the farm is only
one boar for six sows. The farm employs highly manual operations in its native
swine production. The ideal weight of native pig for slaughtering is between 40-
50 kilograms. It is achieved after three to four months. The products of native pig
production are live organic native pig, meat cuts and lechon
In the organization and management, it was observed that the organic
native swine production was only manned by one person with no proper
education on organic native swine raising. The farm doesn’t have a proper set of
61
schedule for the production activities; some of the activities that must be done in
the organic native swine are not executed.
Marketing of the organic swine products depends heavily on the “word of
the mouth” by their customers. Average monthly actual production of the product
was very low and aggressive marketing of the products was not implemented.
62
Generating and Classifying Problem Areas
A two-month or 300 hours apprenticeship study was conducted at Sweet
Spring Country Farm, SitioBigtasin, Kaysuyo, Alfonso, Cavite. During this period,
several farm problems exist in different areas of business. These problems were
identified through actual participation and gathering of data and interviewing of
farm workers by the apprentice in the farm.
Problems identified during the two-month field practice in Sweet Spring
Country Farm include the following:
1. Lack of farm records
There was no detailed information or data recorded by the farm
about the organic native swine production. The same is true for the
other product in the farm.
2. Unattained target production
During the apprenticeship study, the apprentice observed that
SSCF’s production area cannot accommodate more piglets because the
existing area is limited. The farm was unable to meet the desired quantity
of swine to be sold every month.
3. Lack of manpower and well-trained workers
As observed, the worker assigned to the native pig division is only
one. Further, the worker does not have the proper education needed in
organic swine raising. In effect, performance of proper management
system was ineffective.
63
Problem Identification
The problems identified were ranked according to importance to the firm
and likelihood of success of the firm to identify and implement a solution. Each
identified problems were ranked according to its priority. After assessment, the
main problem was the firm’s inability to meet its production target (Table 23).
Table 23. Criteria and Prioritizing for Selecting ProblemPROBLEM IMPORTANCE
(H,M,L)
LIKELIHOOD
OF SUCCESS
(H,M,L)
PRIORITY
NUMBER
Lack of farm records
M L 3
Unattained target production
H H 1
Lack of manpower and well-trained workers
M H 2
The following variables were used in determining priorities:
H- High importance or likelihood of success
M- Moderate importance or likelihood of success
L- Lower importance or likelihood
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Problem Analysis
The firm’s inability to meet its production target was the main problem
since it made a big impact on meeting the customer’s demand. According to the
standard set of pen size of the Department of Agriculture, there must be a size of
1.2 m2in every pig for fatteners until it reached the weight of 40 to 50 ;kilograms
which is achieved within four months. So there must be an area of 22m2 to raised
20 live organic native swine for fatteners. Sweet Spring Country Farm was able
to follow the standard pen size. There are two fattening pens in the farm.Each
pen had 15 pigs housed in a 20 m2 area.
At present, the farm had six sows and one boar, the average litter that a
one sow could gave birth is 6 litters. So there will be a total of 36 litters if the
entire sow will get pregnant, this could meet the production target in one month.
So, to meet the production target in the next month, the farm must acquire
additional five sows to produce average litters of 30. In this production system,
the farm could meet their monthly target production and may be able to increase
the productivity.
Table 24 shows that monthly average production target was not attained
due to limited production area that resulted in low productivity. A total of 14
heads were not produced by the farm to supply it to its customers.
Reflected in Table 26 were the lost of sales during January
2015 for not being able to attain their monthly average production target.
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Table 24. Organic Native Swine Monthly Average Production as of January 2015PRODUCT MONTLY
AVERAGEPRODUCTIONTARGET
MONTHLY AVERAGE ACTUAL
PRODUCTION
DEVIATION
Live Organic Native Pig
20 heads 11 heads 9
Meat Cuts 8 heads 5 heads 3
Lechon 4 heads 2 heads 2
Total 14
Sources: SSCF Farm Interview
Table 25. Organic Swine Products corresponding Weight and PricesPRODUCT AVERAGE WEIGHT
PER HEADAVERAGE PRICE PER
KILOLive Organic Native Pig 7 Kg 150 Php
Meat Cuts 40 Kg 162 Php
Lechon 30 Kg 5500 Php
Table 26. Monthly Lost Sales on Organic Swine ProductsPRODUCT PRICE AVERAGE
MONTHLY TARGET SALES
AVERAGE MONTHLY
ACTUAL SALES
LOST SALES
Live Organic Native Pig
150 21,000 11,550 9,450
Meat Cuts 162 51,840 32,400 19,440
Lechon 5500 22,000 11,000 11,000
Total 94,840 54,950 39,890
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Categorizing the Possible Causes of the Problem
MaterialsSweet Spring Country Farm’s organic native swine production area
measures 1,000 m2. The area covered by the organic swine cannot
accommodate more piglets to attain their target production. There were only 6
pens available in the native pig division. These are the two fattening pens, the
breeding pen, the gestating pen, the lactating pen and the isolation pen. The
farm doesn’t have rearing pen for weanlings, instead they are place in the sows’
pen until the pig reached 15-20 kilograms and will then be transferred in the
fattening pen. Thus, the place is small and limited. Moreover, the sow population
is not enough to attain the set production target of the farm. There were only six
sows in the farm.
Manpower
There isonly one worker assigned in the organic native swine. Eventually
the caretaker did the entire task in the pig division. The caretaker also doesn’t
have the proper education and training as well as experience in raising organic
native swine.
Machinery
SSCF’s organic native swine production used manual operation practiced.
The use of machinery like the shredder is only done in the food preparation but
not frequently. Shredder is only used for those hard plants or fruits that are not
chopped easily. Other than that the farm executes its activities manually.
67
Methods
Sweet Spring Country Farm practiced manual operation; there are no
activities that needed to be automated. The feedingschedule of the pigs in the
farm is7 o’clock in the morning and 4 o’clock in the afternoon and a snack at 2
o’clock in the afternoon. These feeding schedules are not strictly followed in the
farm and no detailed or systematic schedule of feeding theorganic native swine.
Others
Due to the topographic location of Sweet Spring Country Farm the farm is
experiencing inclement weather.
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Figure 9. Ishikawa Diagram
Manpower Materials
MachinesMethods
Others
Small and limited Production Area
Low educational experienceLack of
Technical Training
Lack of worker experience
Caretaker performed
multitasking
Highly manual operation
performed at the farm
Feeding Schedule
No proper schedule of activities in the native pig
division
Inclement weather
Manual operation practiced
Unattained target
production
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Alternative Courses of Action
The alternative courses of action that is targeted to solve unattained target
production of organic native swine.
Alternative A: Expansion of the organic native swine production.
Sweet Spring Country Farm is having difficulty in meeting its production
target. Expansion of native swine production area would mean more pigs will be
raised. Acquiring more sows would mean more litters will be farrowed. The
number of litters that will be farrowed by five additional sows will be 30 litters.
Thus, production target will be attained.
Computation:
Present: Number of Sows x Average farrowed litter
6 x 6 = 36 litters
Additional: Number of additional Sows x Ave. farrowed litter
5 x 6 = 30 litters
Advantages:
1. There will be enough area to accommodate housing for more
swine.
2. Native swine will have enough pens thus they will be grouped
accordingly.
3. Additional 30 litters will be produced by acquiring 5 additional
sows.
70
Disadvantages:
1. Additional cost for the farm for the building materials.
2. Additional cost will be incurred
Alternative B: Conduct training and seminars to enhance the caretaker’s
knowledge and skills in native swine raising.
Skilled workers are needed in raising native breeds of pigs. Trained
workers knew the do’s and don’ts in raising this breed. Eventually, higher
productivity can be expected.
Advantages:
1. The caretaker will be more knowledgeable regarding the proper
management in the native swine division.
Disadvantages:
1. It would be an additional expense to the farm.
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Recommendation
In the final analysis, it is recommended that the management of the farm
should expand the native swine production area in order to accommodate higher
swine population. More rooms for the native swine would result to proper
grouping of swine accordingly and more effective native swine raising. Acquiring
additional sows will increase the number of farrowed piglets then higher
productivity will follow.Having the expansion of native swine would result to
proper management and increase productivity in the native swine area, thus, it
would contribute to the increase of farm income and profit.
To implement the chosen course of action, a budget plan is prepared. The
expansion will be costly but this could contribute to the increase in productivity of
organic native swine.
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Implementation Plan
A budget is a quantitative expression of a plan for a defined period of time.
It may include planned sales volumes and revenues, resource quantities, costs
and expenses, assets, liabilities and cash flows. It expresses strategic plans of
business units, organizations, activities or events in measurable terms.
Expansion of the production of organic swine will not be totally costly. Two
farm workers can build two weaning pens. The farm has an idle land where the
additional pens can be built. Since the recommended sows are five and could
possibly farrow a maximum of 36 litters, two weaning pens must be added with
size of 22 m2 each to accommodate 20 piglets per pen.
The building materials that are needed are bamboos that are available in
the farm; six sheets galvanized iron for the roofing of the two pens; one kilogram
large nails; and a 50 m2electric fence that cost 2,200Php fixed, including
installation. When the pens are built, feeding troughs and waterers will be placed
in each pen.
Since the farm has already six sows and one boar, they may rear piglets
to become breeder sows. Through this expenses in acquiring additional sows will
be lesser. Breeder sows are reared for about five to six months depending on the
feeding.The farm must purchase an additional twosack of rice bran per week as
a mixture for the organic native swine food prepared for the reared additional
breeder sows. For the piglets, an additional 1 sack of feeds must be acquired per
month.
73
Budgeted expenses of the expansion of organic swine are reflected in Table
27. A total of Php7,390 is the estimated expense for the expansion of the organic
native swine production.
Table 27. Budget Plan for the Organic Native Swine Production ExpansionMATERIAL QUANTITY PRICE TOTAL
Building material:
Galvanized iron
sheets
6 430Php/sheets 2,580Php
Electric Fence 50 m2 2200 Php 2,200Php
Nails 1kgs 50Php/kg 50Php
Feeds
Rice bran 2 sacks 630Php/sack 1,260Php
Organic feeds 1 sack 1300/sack 1,300Php
TOTAL 7,390
74
REFERENCE
Arabejo, L.B 2011. RGLN Farm: An Integrated Piggery Farm Apprenticeship
Study. Visayas State University, Visca, Baybay City, Leyte
Refe, R.V 2013. An Organic Swine Production Apprenticeship Study. Visayas
State University, Visca, Baybay City, Leyte
Arabejo, A.D 2004. Mira Farm: Swine Production Case Study
Leyte State University, Visca, Baybay City, Leyte
http://www.farad.org/regulatory/prn_swine.pdf
https://www.pig333.com/latest_swine_news/philippines-bai-look-into-commercial-profit-of-raising-native-pigs_3299
75
APPENDICES
76
Appendix A
Definition of Terms
Term Definition
Boar An uncastrated pig kept for breeding purposes.
Castration A minor operation involving the removal of testicles of male piglets.
Culling Removal and slaughtering of unproductive boar/sow in the farm.
Estrus Interval between weaning and next breeding.
Estrus cycle Cycle of events from one heat period tp next
Farrowing Act of giving birth of sows
Fatteners Pigs raised for meat purposes.
Gilts A female pig that never farrowed a litter and has not yet reached an evident state of pregnancy.
Litter The young brought fort at one birth.
Organic Raising of livestock gradually and naturally, without being forced or contrived.
Sow An adult female hog
Suckling Young pig, from birth to weaning
Vaccination Injection of Vaccines
Weanlings Young pigs newly separated from the sow 30 days of age.
77
Appendix B
Schedule Log Sheet
Date Day Activity DepartmentApproximated Time
Started FinishedTotal Hours
2014
Nov.17 Monday Brief discussion and orientation with
the farm supervisor
Personnel 1:00 2:00 1
18 Tuesday Harvesting Lettuces
Weeding and cultivation
Clearing
Feeding the pig
Production
Production
Production
Production
5:00
1:00
3:00
10:00
3:00
5:00
2
3
2
2
19 Wednesday Cleaning the Pig pen
Clearing
Plowing
Weeding and cultivation
Seed Sowing
Production
Production
Production
Production
Production
6:00
8:00
1:00
8:00
11:00
5:00
2
2
2
3
1
78
20 Thursday Harvesting Lettuce and Herbs
Weeding and cultivation
Production
Production
6:00
1:00
11:00
5:00
2
7
21 Friday Harvesting Lettuce
Packing
Weeding and cultivation
Food cooking for the swine
Clearing
Production
Production
ProductionPr
oduction
Production
6:00
1:00
3:00
11:00
3:00
5:00
2
1
2
2
22 Saturday Harvesting Lettuce
Packing
Clearing
Watering with Power Grower
Production
Production
Production
Production
6:00
1:00
11:00
5:00
2
1
2
2
24 Monday Feeding the pig
Packing
Clearing
Weeding and cultivation
Transplanting into plant cell
Production
Production
Production
Production
7:00
1:00
8:00
11;00
5:00
1
2
2
1
79
Watering the plots Production 1
25 Tuesday Plowing
Transplanting into the seedbed
Watering the plants with FAA
Tying of nets
Transplanting of herbs into pots
Production
Production
Production
Production
Production
7:00
1:00
11;00
5:00
3
1
1
1
1
26 Wednesday Watering of plants
Weeding and cultivation
Tying the Chicharo plants
Food preparation for the swine
Lecture and discussion
Clearing
Production
Production
Production
Management
Production
7:00
1:00
3:00
11;00
3:00
5:00
1
3
1
1
2
27 Thursday Harvesting Lettuce
Planting Lettuce
Clearing
Production
Production
Production
7:00
1:00
11;00
5:00
2
3
2
28 Friday Packing Production 7:00 11;00 1
80
Land Preparation
Clearing
Cleaning the pig’s pen
Production
Production
Production
1:00
3:00
3:00
5:00
4
2
29 Saturday Selling in Robinson’s Tagaytay
Inventory of unsold products
Cash counts
Marketing
Finance
Finance
7:00
1:00
11;00
6:00
8 & 20mins.
20mins
20mins
Dec.1 Monday Packing
Cleaning the surroundings
Food preparation for the swine
Planting Lettuce
Production
Production
Production
Production
7:00
1:00
11;00
6:00
1
1
6
2 Tuesday Planting Lettuce
Packing Coconut Vinegar
Production
Production
7:00
1:00
11;00
6:00
5
1
3 Wednesday Planting Lettuce
Land Preparation
Cleaning of pig’s pen
Production
Production
7:00
1:00
11;00
5:00
4
3
4 Thursday Watering Production 7:00 11;00 2
81
Planting
Land Preparation
Cleaning the surroundingsProduction
Production
Management
1:00
6:00 3
2
1
5 Friday Packing
Selling inRobinson’s Tagaytay
Inventory of unsold products
Cash counts
Production
Production
Finance
Finance
7:00
1:00
11:00
8:00
1
9 & 20mins
20mins
20mins
6 Saturday Packing
Watering
Land Preparation
Assist the caretaker in farrowing
Production
Production
Production
7:00
1:00
6:00
11;00
5:00
10:00
1
2
4
4
10 Wednesday Planting Lettuce
Placing stickers on the pots
Production
Production
7:00
1:00
11;00
5:00
4
4
82
11 Thursday Potting and placing stickers on the
pots
Putting compost soil in the pots
Teeth clipping and tail docking
Production
Production
7:00
1:00
11;00
5:00
3
4
1
12 Friday Washing the crops and plants
Potting and placing stickers on the
pots
Cleaning the surroundings
Production
Production
Production
7:00
1:00
11;00
5:00
1
5
2
13 Saturday Placing the net on the plots
Arranging herbs in the baskets
Potting and placing stickers on the
pots
Production
Production
Production
7:00
1:00
11;00
5:00
1
1
6
15 Monday Lecture and discussion
Potting
Land Preparation
Management
Production
Production
7:00
1:00
11;00
5:00
1
4
2
16 Tuesday Cleaning the baskets Production 7:00 11;00 1
83
Land Preparation
Planting Lettuce
Cleaning the pots
Production
Production
Production
1:00 5:00
5
2
1
17 Wednesday Clearing
Watering the plants with FAA
Weeding and cultivation
Planting
Injecting iron
Production
Production
Production
Production
7:00
1:00
3:00
11;00
3:00
5:00
1
1
3
2
18 Thursday Educational Tour in Costales
Nature Farms Inc.
Management 7:00 8:00 13
19 Friday Cleaning the pots
Putting soil in the pots
Potting
Production
Production
Production
7:00
1:00
11;00
5:00
3
2
3
20 Saturday Cleaning the surroundings
Food preparation for the swine
Management
Production
7:00
1:00
11;00
5:00
5
3
22 Monday Cleaning and feeding the sow Production 7:00 9;00 3
84
Land Preparation
Weeding and cultivation
Planting Lettuce
Production
Production
9;00
1:00
11;00
5:00
1
3
23 Tuesday Weeding and cultivation Production 7:00
1:00
12;00
5:00
9
26 Friday Weeding and cultivation
Feeding the swine
Production 7:00
1:00
12;00
6:00
10
27 Saturday Clearing
Land Preparation
Planting Lettuce
Making Pickles and Papaya salad
(Atsara)
Production
Production
Production
Production
7:00 6:00 2
2
3
2
29 Monday Selling in Robinson’s Tagaytay
Inventory of unsold products
Cash counts
Marketing
Finance
Finance
7:00 9:00 13 & 20mins
20mins
20mins
30 Tuesday Harvesting Herbs
Washing and Packing
Production 7:00 12;00 2
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Weeding and cultivation Production
Production 1:00 5:00
2
5
2015
Jan.2 Friday Inventory of swine Management 1:00 5:00 4
3 Saturday Land Preparation
Planting Lettuce
Production
Production
8:00
1;00
11:00
5:00
2
4
5 Monday Clearing Production 8:00
1:00
12:00
6:00
9
6 Tuesday Land Preparation
Planting Lettuce
Production
Production
7:00
1:00
11:00
6:00
5
3
Summary:
Department Hours
ORGANIZATION AND MANAGEMENT 25 Hours
PRODUCTION 261 Hours
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MARKETING 31 Hours
FINANCE 2 Hours
TOTAL 319 Hours
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Appendix C
Swine Production in the Philippines
The Philippines is located in Southeast Asia. It is an archipelago with a
total area of 300,000 Km2 wherein 32% is devoted to agriculture. Its 2007 census
showed that it had a population of 88.57 million but the July 2008 estimate is
already 92.68 million. The derived annual per capita pork consumption in 2007
was 15.07 kilograms excluding offals and processed meat.
The PHP 160 billion hog industry is the second leading contributor to
Philippine agriculture coming in second to rice despite being almost exclusively
without government subsidy.
The country’s swine total inventory as of January 1, 2008 was estimated
at 13.7 million head, up by 1.80 % compared to last year’s level. Backyard farm
initial stocks this year went down by 1.00 % while, commercial farms inventory
registered a 9.37 % increase against initial stocks of 2007. About 71 % of the
swine population are raised in backyard farms while 29 % are in commercial
farms.
The swine industry which accounted for 80 percent of total livestock
production registered a 2.72 % growth in 2007. The gain in production was noted
during the 2nd and 4th quarters of 2007 when more animals were slaughtered.
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In 2007, the average annual price received by farmers was P71.26, about 2.83 %
higher than the 2006 price. Similarly, the average wholesale price of live hogs in
Metro Manila went up by 0.77 %. Annual average retail price in Metro Manila
increased by 0.83 % from the record set the previous year.
The Bureau of Agricultural Statistics (BAS) stated that Philippine hog
production dipped slightly from 1.89 tons in 2007 to 1.86 tons in 2008. The most
notable decrease in stocks was the numerous losses incurred by farms mainly in
Luzon due to diseases like hog cholera, PRRS, Pseudorabies, Swine Flu and
Circovirus in the last year. The disease scare was such that farmers immediately
sold their pigs for fear of getting hit by the continuing drop in market price while
feeling the increase in prices of commercial feed as well as the basic ingredients
like corn.
In terms of value, however, the pig sector posted an 11.29% increase with
PHP 149.59 billion (USD 3.16 billion) from PHP 134.42 billion (USD 2.84 billion)
in 2007. The BAS attributed the growth to improved farm prices which averaged
PHP 80.61 (USD 1.70) per kg in 2008 compared to PHP 71.27 (USD1.51) per kg
in 2007. While backyard pens are very cheap, it is estimated that commercial
farms will spend around PHP 4000 (€60) per m2. Building Cost Estimate (300
Sow Level).
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Appendix D
Organic Certification Center of the Philippines Standards
AREA OF OPERATION FARM PRACTICE ORGANIC CERTIFICATION CENTER OF THE
PHILIPPINES STANDARDS
Crop Production
Seeds Acquire hybrid seeds but are not treated with chemicals
When certified organic seed and plant materials are not available, chemically untreated conventional materials may be used, provided that they have not been treated with pesticides not otherwise permitted by these standards.
Crop Rotations and Soil Management Practices
String beans are planted in the farm.
In intensive vegetable cultivation, there shall be at least one legume crop in rotation within three years.
Fertilization Policy Dried leaves are being decomposed.
Biodegradable materials of microbial, plant or animal origin produced on organic farms should be the basis of the fertilization program.
Used animal manure such as pigs and chicken dung
Untreated sewage and manure containing human feces shall not be used on vegetable production for human consumption, unless it has undergone a process of anaerobic fermentation (e.g. biogas process) or
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high-temperature composting.
Used urea for the coffee trees but not on vegetables and herbs.
All synthetic nitrogenous fertilizers including urea are prohibited.
Commercial Production of Organic Fertilizer
Fermentation of fish amino are done. The said mixture are mixed with water and it is apply to lettuce, vegetables and herbs.
Organic fertilizer production is preferably based on a natural composting or fermentation process.
Pest, Disease and Weed Management
No form of pesticides are used in the farm
The use of synthetic pesticides (herbicides, fungicides, insecticides, molluscicides, nematicides etc.) are prohibited.
Soil and Water Conservation
Land clearing are done manually by the farm workers.
Clearing of land through the means of burning organic matter, shall be restricted to the absolute minimum. The use of burning for pH correction needs approval of the certification body.
Processing
Post-harvest Operations Fermentation of coconut vinegar are done in a large jar. It is separated from other products. The jar was also sealed to prevent microbes.
Organic produce shall neither be mixed nor switched with non-organic produce. Handlers and processors shall not co-mingle organic products with nonorganic products.
Storage and Transportation
Coconut vinegar when transported are placed in a box.
Organic and non-organic products shall not be stored and transported together except when
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physically separated and labelled.
Ingredients of Agricultural Origin
The raw material for the coconut vinegar processing are the fresh sap of coconuts. The coconuts are inside the farm and are grown without any chemicals
Raw materials shall not be genetically engineered.
Other Ingredients and Processing Aids
There are no additives mix in coconut vinegar processing
The use of additives and processing aids is restricted.
Salt and water are used in preserving the freshness and crunchiness of lettuce.
Salt and water may be used in organic products.
Methods of Processing Fermentation are the only process used in coconut vinegar processing.
The following kinds of processes are approved:
mechanical & physical processes
biological processes (e.g. fermentation)
smoking, drying extraction precipitation filtration
Container of the coconut vinegar is a glass.
Processing containers should be ‘Food-grade quality’ Stainless Steel, Ceramic, or Glass.
Packaging Environmentally friendly plastic cellophane are used in the packaging of lettuce, vegetables and livestock meat products.
Packaging shall, whenever possible, be “Environmentally Friendly,” simple, and not deceptive.
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Special Products
Herbs A specific area are planted with different kind of herbs. Every kinds of herbs are grouped together.
Over-harvesting wild herbs must be avoided to ensure the sustainability of the species concerned.
During harvesting of herbs, proper selection are carefully done to prevent the young ones to be harvested. It is important that only the prime ones will be harvested.
Only herbs in their prime shall be harvested.
After harvesting, the herbs are placed in plastic container.
Herbs shall not be dried in direct sunlight to preserve their benefits; neither shall they be dried in locations prone to contamination.
Labelling and Consumer Information
Labelling Sweet Spring Country Farm products are grown organically, but they didn’t labelled their products with organic label for they doesn’t apply to any certification yet.
Only products that are produced, handled and processed according to these Standards may be labelled as “produce of organic agriculture” or similar.
Appendix E
Computations of Financial Ratios
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Profitability Ratio
Net Profit Margin
2013Net Profit Margin = Net ProfitSales
= 449,6301,281,886
NPM= 0.35
2014Net Profit Margin = Net ProfitSales
=674,1311,103,795
NPM = 0.61
Gross Profit Margin
2013Net Profit Margin = GrossProfitSales
= 415,7521,281,886
NPM= 0.32
2014Net Profit Margin = Gross ProfitSales
=318,9621,103,795
NPM = 0.29
Appendix F
Common Farm Equipment and Facilities
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Water Tank
Natural Spring at Sweet Spring Country Farm
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Pump House
Nissan Pick-up
96
Kubo
97
Appendix G
Organic Native Swine Equipment and Facilities
Electric Fence for the Native Pig House
Floor Area of Native Swine Housing
98
Cooking Area of Food for Native Pig
Shredder
99
Appendix H
Sweet Spring Country Farm Sanitary Permit to Operate
100
Appendix I
Sweet Spring Country Farm Mayor’s Permit
101
Appendix J
Sweet Spring Country Farm’s Certificate of Appreciation from ATI Reg. IVA
102
Appendix K
Apprentice’s Certificate of Completion
103
Appendix L
Apprentice’s General Evaluation
104
Appendix M
Documentations
First meeting with the owner Mr. Francis “Kiko” Pangilinan of Sweet Spring Country Farm
Ms. Joviel R. Teves’ farm visit
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Setting of tarpaulin a preparation for the farm visitor
Farewell picture with the Sweet Spring Country Farm owner, Mr. Francis “Kiko” Pangilinan