Transcript Operations Flow Backyard Poultry Project

KATILINGBANONG PAMAHANDI SA
MINDANAW FOUNDATION INC.
COMMUNITY WEALTH CREATION INITIATIVES IN
MINDANAW
The Social Enterprise Institution of
Balay Mindanaw Group
KPMFI…
• relatively newcomer in the field of social
•
•
•
enterprise
registered with Securities and Exchange
Commission (SEC) last Oct. 17, 2006
It is an institution that has been conceptualized
by the leadership of Balay Mindanaw
Foundation, Inc. (www.balaymindanaw.org) after seeing the
need for an institution that will focus on social
enterprises
It is also a logical evolution of its area based
development work for the last 11 years.
Rationale
• Integral part of our SIAD work as realized when we
implemented the SIAD Program
• Putting value from the existing initiatives (SIAD –
COCOBREAD)
• Taking –off from the strength of the livelihood
projects of the partner communities in the last five
years (production, processing and marketing)
• How to ensure that “small victories and gains”
achieved by the partner PO’s and partner barangay
and local government units will be protected and
enhanced to grow stronger as the vehicle towards
development and become a foundation for building
sustainable peace in the partner communities
Vision (Internal)
• A Social Enterprise NGO with big dreams
for its partner communities under the BM
Group of NGOs, with professionalism at
par with national and global standards,
and a local NGO with a passion to
revolutionize production technologies and
contributing to market reforms thus
making it accessible to the poor…
Mission :
• Helping Build Community Sustainable
•
•
•
•
Enterprises
Helping Build Opportunities for Wealth Creation
for Local Entrepreneurs
Helping Build Vibrant Local Economies
Helping Build Foundation of Sustainable Peace
Helping Build Sustainable Business Models for
Social Enterprises
Goals and Objectives(in 10yrs):
• Establish at least 10 farm based and off-farm
•
•
sustainable and viable community enterprises
Develop at least 1500 community based
entrepreneurs
Establish direct joint venture investments with at
least 10 business corporations, with LGU’s
(province, municipalities/cities and barangays)
and with enterprising NGO’s and PO’s and other
civil society groups.
Strategies and Programs
(SE Promotion or Scaling-up)
• Community-Based Work (Participatory Local Governance,
•
•
•
•
•
Access to Justice and Peace Building)
Capacity Building program for partner PO’s and LGU’s on
sustainable enterprises
Joint venture partnerships with business corporations,
enterprising NGO’s/PO’s, Local Government Units
(province, municipality/city and barangays)
Business Development Servicing
Market Development and Linkages (both for mainstream
and niche markets)
Capital Sourcing from Government, Donors and Business
Corporations
KPMFI’s CORE BUSINESS
Helping Transform Agri-Based
Poor Households to become
Entrepreneurs
WHAT WILL BE OUR
BUSINESS MODEL?
Context…
Rural Household Usual Situation in terms of Income and Expenses
Daily
Income
Expenses
Weekly
Monthly
Banana
Food
School Baon
Farm
Inputs
Water
Electricity
School
Tuition
Requirements
Quarterly
Seasonal
Yearly
Copra
Coffee
Corn
Rice
Cassava
Abacca
Post
harvest
Services
Post
harvest
Services
Post
harvest
Services
Rural Household Usual Situation in terms of
Income and Expenses
Result:
Poverty
Low Income
Low Production
Limited Capacity to Produce
Diminishing Capital
Immediate Challenge…
1. Increase Farmer’s Income
Daily – Weekly – Monthly – Quarterly –
Semestral
2. Good Social Enterprise
Triple Bottom Lines:
a. Raise the Quality of Life of the Poor (Doing Good)
b. Generate Social Enterprise Income (Doing Well)
c. Address Social Issues (Doing Right)
Current Situation
Schedule of Harvest
Daily
Weekly
Monthly
Banana
Quarterly
Copra
Coconut Husk
Semestral
Corn
Rice
Yearly
Cassava
TRANSFORMATION PROCESS
RECLAIIM
Daily
Weekly
Quarterly
Poultry
Goat
Vegetables
Copra
Coco Husk
Lawi
(broom)
Coffee
Seasonal
Corn
Rice
Yearly
ON-FARM
Dairy
Egg
OFF-FARM
• SilhiG, Banig, Basket, Hand Craft, Post Harvest Facilities, Trading and
Marketing
Banana
Cut Flower
Vegetables
Monthly
Cassava
Abacca
Rural Enterprises thru Crop-LivestockAqua Integration-Intensification Model
(RECLAIIM)
INCOME
SOURCE
Daily
Weekly
Monthly
ON-FARM
Dairy
Manure
Egg
Banana
Cut Flower
Vegetables
Poultry
Goat Meat
Vegetables
Organic
Fertilizer
OFF-FARM
• Silhig
• Banig
• Basket
• Hand Craft
• Post Harvest Service
• Trading and Marketing
Quarterly
Seasonal
Copra
Husk
Lawi
Coffee
Corn
Rice
Yearly
Cassava
Abacca
Cattle Meat
Investment per Household
Livestock
Backyard
Poultry
Production
Input
1,000
heads
Investment
Needed
Projected Income
per Month
120,000
P 6,000
Goat Dairy and 20 Heads
Meat Production
120,000
P 6,000
Cattle Dairy
and Meat
Production
150,000
P 10,000
P 390,000
P 22,000
3 heads
TOTAL
TRANSFORMATION PROCESS OVERVIEW
Basic
Value
Chain
Production
Processing
Marketing
Input Supplier
Value
Chain
Actors
KPMFI
core
intervention and
Programs
Value
Chain
Support
ers
Farmer
Supplier/
Transporter
s
Processo
rs
Wholesalers
Exporters
Retailers
Retailers
Local
Market
External
Market
Intra-chain/Inter-actor support, coordination, facilitation and consolidation
and Supply Chain Management
Community
Development
Work
MFI/BANKS
Donors
Business Devt.
Services
GOVT.
NGOS
Market
Development
BUSINESS
CORPORATION
Multiplier Farm
(Research and
Development)
Franchising
Development
WHAT WILL BE OUR
BUSINESS DESIGN?
Manok Mindanaw
Backyard Poultry Production Project
2006
Context:
• Provide additional Household income
• Maximizing productive local resource
(land, labor, water and indigenous
materials)
• Revolutionize the poultry industry
through backyard poultry project
(breaking tradition)
Current Trend and System of Broiler Industry in the Philippines :
Commercial Contract Grower (Conventional)
Distribution
Fresh, Frozen and
Processed Product
Supplier 1
Supplier 2
Supplier 3
Feed Mill
Inputs
-DOC
- Feeds
-Vaccines, Medicines
- Technical
Integrator
-Magnolia,
Bounty, GAMA,
ACI
Marketing
Food Processing
Dressing Plant
Contract Agreement :
ALW = 1.4
HR = 95%
FCR = 1.85
GF = Pph 8.00/bird
Large Contract Growers
120,000 birds/Grower
24 Flockman : 1 Supervisor
(25% Labor and 75% Owner)
Output
30-35 day old
chicken
Revolutionizing the Broiler Industry in the Philippines :
Commercial Contract Grower to Backyard Contract Grower
Household BACKYARD MODEL
Suppliers
Feed Mill
Inputs
-DOC
- Feeds
-Vaccines, Medicines
- Technical
Integrator
ACI/Sr. Pedro LM
KPMFI’s
Fee = 2/kl
Distribution
Fresh, Frozen and
Processed Product
Marketing
Food Processing
Dressing Plant
KPMFI
FACILITATOR,
ORGANIZER AND
CONSOLIDATOR
Contract Agreement :
ALW = 1.4
HR = 95%
FCR = 1.85
GF = Pph 8.00/bird
Management Fee = 3%
of total INPUT Cost
(Pph 1.40/kl)
Output
30-35 day old
chicken
Backyard Contract Growers
120,000 birds @ 600 birds/Grower
200 Households
100% GF goes to the Household
Revolutionizing the Broiler Industry in the Philippines :
Commercial Contract Grower to Backyard Contract Grower
KPMFI
INTERMIDIARY, FACILITATOR, ORGANIZER AND CONSOLIDATOR
Recruitment, Orientation
and COing
Initial Investment of
3M
Technical Training on
Broiler Mngmt.
Setup of Admin and
Finance
Technical Monitoring
Technical Persons
Warehousing
Warehouse and
Logistics
Delivery and Distribution
Trucks (1 chickvan
and 2 harvester with
crates)
Sampling and Harvesting
Billing and Payment
Growers Assessment and
Programming
Contract Agreement :
ALW = 1.4
HR = 95%
FCR = 1.85
GF = Pph 8.00/bird
KPMFI’s Fee =
2.00/kl
Management Fee =
3% of total INPUT
Cost (Pph 1.40/kl)
700 Households engage
into Contract Growing
What we have done so far….
2006
2007
Totals
# HH
248
655
# DOC
140,429
694200
834,629
Grower’s Net Income
1,303,884.48
4,355,184.48
5,659,068.96
Grower’s Net Loss
19495.45
675,328.56
694,824.01
Observation:
1. Grower’s Buy out per bird is only 6.78/bird
2. 11% net loss from the supposedly total net income of the growers
3. Almost 400% increase of total Day old Chick from 2006 to 2007
4. 164% increase of Household engage in contract growing (2006 – 2007)
5. Involving 2 Municipality and 1 City with a total of 59 Barangays
6. Average Grower’s Net Income
2006 – Pph 5,257.59/grower
2007 – Pph 6,649.13/grower
AS of May 2008
# DOC
Harvested
550,077.00
507,298.00
Harvest
Recovery
92%
Average Live
Weight
Feed
Conversion
Rate
1.48
1. 92% harvest recovery is lower of 3% of the target HR of 95%
2. Average Live weight is significantly higher to the target ALW (more
percentage of oversize)
3. FCR is significantly good (feed conversion rate)
Finance ?
1.80
HH Grower’s Projected Income
Item
FARM Inputs Cost
Day Old Chick
CBM (Chick booster mash)
BSC (Broiler Starter Crumble/Mash)
Total volume of Feeds
Cost of Medicines (2.00/bird)
Total Input Cost
Hauling Charges
DOC @ 0.5/DOC
FEEDS @ 35/SACK
Total Hauling Cost
Total Cost (Inputs and Hauling Charges)
Interest Income (3% of the total farm inputs)
Total Cost of Inputs and interest
Unit
Unit price
bird
sack
sack
sack
pesos
17.00
860.00
790.00
bird
sack
Sales
52.00 per kl of the total harvest @ 1.45 ALW with
5% mortality)
Chicken Dung
sack
Gross Sales
Gross Income
Quantity
2.00
200
2.00
8.00
10.00
200
3,400.00
1,720.00
6,320.00
8,040.00
400.00
11,840.00
0.50
35.00
200.0
10.0
100.00
350.00
450.00
12,290.00
368.70
12,658.70
14,326.00
60.00
4.00
14,566.00
Profit per Bird
Assumptions:
FCR
ALW
HR
Buy-out per Kilo
Cost
1.95
1.45
95%
52
1,668.00
8.80
Project Process
Overview
Basic
Orientation on
BBPP (1 day)
Harvesting and
delivery to Dressing
Plant (35th day)
Site Inspection of
the Proposed
BBPP
Billing to ACI and
Grower
Payment and
Collection of
Payment from ACI
Approval and
Signing of MOA –
Memorandum of
Agreement
Payment to Growers
Monitoring on
Growing Stage
Inspection of
poultry house and
equipment and
approval
(15 days after harvest)
Growers’ Evaluation
and Scheduling for
Next Cycle
Sampling for
Harvesting
Construction of
Poultry House and
Purchase of basic
facilities and
equipment
Next Production
Cycle (21 days
after harvest)
Technical Training
on Broiler
Management and
Scheduling
Final Preparation of
Housing and Brooding
Area. Delivery of
Initial INPUTs (feeds
and medicine)
Delivery of Feeds
Delivery and
Administration of
Vaccines
Placement of Day
Old Chick (DOC)
Brooding Period (14
days)
Pre-production Stage
Production Stage
Basic Orientation on BBPP (1
day)
Placement of Day
Old Chick (DOC)
Site Inspection of the
Proposed BBPP
Approval and Signing of MOA
– Memorandum of Agreement
Construction of Poultry
House and Purchase of basic
facilities and equipment
Inspection of poultry house
and equipment and approval
Final Preparation of Housing
and Brooding Area Delivery of
Initial INPUTs (feeds and
medicine)
Technical Training on Broiler
Management and Scheduling
Brooding Period (14
days)
Post-production Stage
Billing to ACI and
Grower
Payment and Collection
of Payment from ACI
Delivery and
Administration of
Vaccines
Payment to Growers
Delivery of Feeds
(15 days after harvest)
Monitoring on
Growing Stage
Growers’ Evaluation and
Scheduling for Next
Cycle
Sampling for
Harvesting
Harvesting and
delivery to Dressing
Plant (35th day)
Next Production Cycle
(21 days after harvest)
Backyard Broiler Production Project Flow
Stakeholders
ANACIANO, INC.
(INTEGRATOR)
BACKYARD
GROWERS
KPMFI
(INTERMEDIARY)
Logistics (Delivery and
Distribution)
Supply of INPUTS
and Technical
Services
Processing
Billing and
payment
Offsetting of
Inputs
Purchases
and Sales of
Stocks with
Hauling Cost
Production (3035 days of
broiler raising)
Logistics (Harvest,
Consolidation and
Hauling to Dressing
Plant)
Produced
Chicken
Billing and
payment
Billing and
payment
Offsetting of
Purchases of
Stocks and
Sales of
INPUTS and
Hauling Cost
ANACIANO, INC.
(INTEGRATOR)
Production
Supply of INPUTS
and Technical
Services
KPMFI
(INTERMEDIARY)
Logistics (Delivery
and Distribution)
Processing
(Dressing Plant)
Marketing
Manok Mindanaw
The Healthy Chicken
Premium Size (50% )
Sr. Pedro
Litson Manok
Out Size (US/OS (30%)
Premium Size (20%)
Logistics (Harvest,
Consolidation and
Hauling to Dressing
Plant)
BACKYARD
GROWERS
Production (3035 days of
broiler raising)
Produced Live
Chicken
Target
Costumer
Dressing Plant
Packaging
Domestic
Bulk
Individual
Pack
Out Size (US/OS )
3,000 kls.
Premium Size
(2,000 kls)
Distribution
Promotion
Dealer
Retailer
Hotel/Res
Supermarkets
Merchandising
Target Area
CDO, Iligan,
Ozamis,Zamboanga,
Gignoog, Butuan,
Surigao, Davao,
Bukidnon...
Cebu, Bohol,
Dumaguete,
Iloilo, Bacolod
NCR ?
Sales/Collection
Export
Importer
Malaysia,
Brunie,
Singapore…