MARA CHERIZ : Investment Plan for Duck Breeder and Hatchery

Hi hello there! I am Jemar Magallanes, Class president of Block A, BSA 1 student of the Zamboanga del Sur Provincial Government College, Aurora, Zamboanga del Sur

In support to one of the prioritized project (Rice-Duck Integrated Farming System) of the present administration through the leadership of +Hon. Gov. Antonio H. Cerilles, we, the BS Agriculture students who are forming an agripreneur association to develop our enterprising skills are studying the viability to venture in Duck Breeder and Hatchery project.

Some of the biological concepts were lectured to us by our part time instructors in Biology (Sir Bob Arcenal of HERBio Food Products, etc ) and Animal Science (Ma'am Arlene Zacal of the Provincial Veterinary Office).

According to sir Bob this study was commissioned by the Philippine Agrarian Reform Foundation for National Development (PARFUND) in support of implementing its project, “Expansion of PARFUND’s Rice-Duck Farming Technology to Strengthen the Local Market Development of the Organic Rice and Duck Industries in Mindanao.” for more added info, insights and inspirations please visit, click, and enjoy reading http://www.fpsdc.com/index.php?option=com_content&view=article&id=66%3Aparfund-fpsdc&catid=9%3Astories&Itemid=13

The PARFUND study is primarily aimed to design an Investment Plan for a Duck Center in Region 9, 10 & 13 with the following objectives:

1. Determine a viable level of operation for a duck center servicing a PARFUND

regional target area;

2. Recommend an appropriate hatchery facility for the duck center; &

3. Present a diagram of duck products flow in Mindanao and value adding within

Northern Mindanao.

Major findings of the study show the following:

1. Duck Centers in regional target areas of PARFUND are financially viable;

2. Appropriate modern hatchery microcomputer controlled incubators are available at reasonable prices;

3. Alternative self mixed feeds ingredients available and cheaper than commercial layer feeds;

4. Mindanao Balutan cannot supply duckling needs for PARFUND program; and

5. Cagayan de Oro weekly sales for balut is significant:

Season : 100,000 pcs

Off-season: 60,000 pcs

According to PARFUND study, the duck industry in the Philippines rank second in terms of economic importance within the Poultry Sub-Sector of the Livestock Sector, next to the chicken industry. Egg production, for balut and salted eggs, is the focus of the duck industry relegating meat production as a by-product. However, the duck industry has stagnated and even declined in growth. During the last two years the growth rates for volume of production for duck meat was -7.65% in 2008 & -8.34 in 2009, while for duck eggs was -9.66% in 2008 and -6.64% in 2009.

Fig. 1 Volume of Duck Production, Philippines
January - December, in Thousand Metric Tons
				Growth Rate
	2007	2008	2009	2007-2008	2008-2009

Duck Meat	42.46	39.21	35.94	-7.65%	-8.34%

Duck Eggs	46.99	42.45	39.63	-9.66%	-6.64%

Fig. 2 Value of Duck Production at Constant Prices, Philippines
January - December, in Million Pesos
				Growth Rate
	2007	2008	2009	2007-2008	2008-2009

Duck Meat	1,489.50	1,375.49	1,260.60	-7.65%	-9.11%

Duck Eggs	1,056.81	954.70	891.28	-9.66%	-7.12%

According to PARFUND, the proposed Enterprise is an integrated duck breeding and hatchery operation targeted to be established in the Regional Centers of Regions 9, 10 & 13 (Caraga) or more specifically in the Cities of Pagadian, Cagayan de Oro and Butuan (or nearby municipality), respectively. It is intended to supply the duckling requirements of the Integrated Rice-Duck Farming System advocated by PARFUND. For the year 2010, PARFUND shall need a total of 150,000 ducklings for a targeted 500 hectares of program coverage or an equal volume of 75,000 ducklings for the first and the second semesters. The ducklings are a critical input to this farming system, with a requirement of 150 ducklings per hectare of irrigated ricefield. The 150,000 ducklings requirement is allocated to the 3 regions as follows: Region 9 - 30,000 ducklings, Region 10 - 30,000 ducklings and Region 13 - 15,000 ducklings per semester. PARFUND has targeted to implement this program for 3 years.

In our level as a student let's see where we can suit for this scenario here in Aurora, Zamboanga del Sur.

Accordingly, the "Duck Breeding Operation" shall produce the good quality fertile duck eggs for the hatchery operation to produce quality ducklings. The breeder population shall be calculated to produce the needed volume of ducklings for the regional requirement of the PARFUND program. The breeder ducks may be completely confined in a duck house or semi-confined when they are released from the duck house during the day to roam freely within its designated fenced area, and driven back inside the duck house for the night for safety and to lay its eggs.

Hmmmp..this is too much for us at this moment...but anyway...there is the provincial government we can supply the labor at this initial stage...

Modern hatchery equipment, setters and hatchers, shall be used by the enterprise. This shall ensure that the schedules of hatching volumes and hatching dates shall correspond to the schedules of transplanting dates and area of ricefield covered by the PARFUND program. Day old ducklings packed in carton boxes or plastic crates shall be delivered to cooperating farmers.

The core business of the Enterprise is the provision of reliable supply of healthy day old ducklings to farmer adaptors of the Integrated Rice-Duck Farming System and other farmers. This is one of the critical factors for the successful implementation of this organic farming system, as well as for the growth and development of a nascent duck industry.

1. BRIEF DESCRIPTION OF THE ENTREPRENEUR according to the gospel of PARFUND

The Entrepreneur of the Enterprise shall either be a private individual, an existing cooperative or an LGU that desires to enter into a partnership with PARFUND in support of PARFUND's Integrated Rice-Duck Farming System. PARFUND's program implementation has created a market opportunity for the supply of ducklings. This is a starting point in the set up stage of the enterprise's life cycle; the other two are competence and passion. Market opportunity, competence and passion, all three, much like a tripod, must exist within the entrepreneur to enable the enterprise to develop and grow. It is important that the Entrepreneur and/or personnel working in the breeder farm and the hatchery have the technical working knowledge and skills or shall acquire the technical knowledge and skills on duck breeding and hatchery operations in order to operate the Enterprise profitably. Passion means believing in what you are doing so that one does not get tired of working. Passion drives the spirit towards perfection and excellence. With these three factors market opportunity, competence and passion : the entrepreneur will have higher probability of success.

2. ENTERPRISE’S CONTRIBUTION TO THE COMMUNITY

The proposed Enterprise provides the critical supply of day old ducklings for the farmer adaptors of Integrated Rice-Duck Farming System in the 3 regions of North Mindanao. The Enterprise within its regional area, shall service the semestral duckling requirement of 30,000 ducklings to cover 200 hectares for Region 9; 30,000 ducklings to cover 200 hectares for Region 10; and 15,000 ducklings to cover 100 hectares for Region 13 for the year 2010.

The synchronized scheduling of duckling production dates and volumes, with that of the transplanting schedules of ricefields of the farmer cooperators shall ensure the successful adaption of the Integrated Rice-Duck Farming System. This is an organic farming system that eliminates the dependency of farmers to chemical fertilizers, and synthetic pesticides/herbicides/moluscides application. As the farmer raise the ducklings in his transplanted ricefield, the ducklings do the functions of pest management, weeds management, tillers stimulation, cultivation, and fertilization. The multi-faceted roles of the ducklings in this Integrated Rice-Duck Farming System frees the farmers from manual labor and the expenses in doing the abovementioned functions of a traditional rice farming system. This revolutionary integration of ducks into the rice farming system has cut production cost of rice, protect the environment with the non-utilization of chemical fertilizers and synthetic pesticides/herbicides/moluscides, and the additional farmers' income with sales from the duck meat and eggs.

DESCRIPTION OF THE PRODUCT/SERVICES

Main Product

The main product of the Enterprise is day old ducklings which is primarily supplied to the farmer cooperators of the Integrated Rice-Duck Farming System. Ducklings shall be raised by the farmers in their rice fields, with simple duck house to provide shelter to the ducklings/ducks during the night. The duck house shall be situated within the rice field area.

Day old ducklings are hatched after 28 days of incubation in a modern setter and hatcher.

The good chicks are packed in carton or plastic boxes with shredded papers as litter, 75 chicks per box.

By-Products

The by-products of the Enterprise are duck fresh eggs, salted eggs, penoy, balut and culled ducks. Surplus fresh eggs from the hatchery operation (in excess of scheduled orders for ducklings) shall be processed into salted eggs, and some quantity shall be sold for table consumption.

Penoy is an incubated egg with no live embryo segregated during the first candling process within the 8th-12th day of incubation. While Balut is an incubated egg with live embryo within the 14th-18th day of incubation segregated during the second candling process. Ducks shall be culled when its laying efficiency has dropped below 50% or when its egg laying ratio is no longer financially viable. Culled ducks and old drakes (male ducks) shall be sold for its meat.

TECHNICAL PROCESS

DUCK BREEDING

The Philippine Mallard duck (Anas platyrhynchos) was developed from the stocks brought by Chinese merchants in the early 19th century, it is commonly called the Pateros duck. Through the processes of natural and artificial selection, the Pateros duck have evolved into an egg-type genetic group that had adapted to local environmental conditions.

Selection of Stocks

The actual performance of ducks is primarily determined by their genetic make-up and the environment they are being raised. Many traits of economic importance are passed on from parent to offspring. The following points shall be considered in the selection of breeder stocks to raise:

· Sound body conformation. Choose ducks and drakes that looks healthy and normal, without body deformities and abnormalities such as crooked keel bone or back, broken wings or legs, blind, or deformed bill.

· Plumage color and pattern. Select ducks and drakes with the black plumage (Pateros type) and with brown plumage (Khaki type).

· Egg production performance. Choose the source of your stocks from duck raisers who have shared with good egg production performance. For your replacement stocks choose from flocks which produce good and large eggs.

Sex Ratio and Mating System

High fertility percentage is a very important factor for a successful duck breeding operation and in balut production. The Enterprise shall observe the 1:8 ratio or 1 drake for every 8 ducks. To ensure high fertility percentage, the following tips shall be observed:

· Place one healthy and sexually aggressive drake for every 7-10 ducks (females). Too many ducks assigned to each drake could result to lower fertility. Too many drakes can lead to frequent fighting resulting to lower fertility. It is good that drakes are older by a month to ducks.

· Keep extra drakes to replace those that will show mating ability problems or that will die during the breeding period.

· To enhance mating, provide adequate space under complete confinement observing recommended space allocation of 1 sq.m. per 5 ducks.

Housing Management

Ducks can be raised in areas near bodies of water or in dry land. It is good to locate a duck farm in areas relatively far from human settlements considering that the Pateros ducks are quite sensitive to human intrusion during their laying period. Secondly, herds of ducks create considerable noise that may be offensive to humans living nearby.

The Enterprise shall adopt the complete confinement system. This system is being used by commercial duck raisers in the Provinces of Laguna, Bulacan and Pampanga. Gleaning from the insights and comments of commercial duck raisers gathered during farm visits in Victoria, Laguna and Candaba, Pampanga on February 10-11, 2010, the slat floor type of housing is more suited in our tropical environment to allow air circulation, while minimizing diseases as duck droppings pass through the slats. This observation was also confirmed by findings of an experimental study made by the Department of Agriculture in Region 1 (please see Appendix IV). Laying efficiency under complete confinement ranges from 75%-85% within the 10 months productive period in a year considering that the Pateros ducks undergoes molting period of two months after laying cycle of 5 months. While the pasturing or pagala system results in laying efficiency of 50%-80% within the harvest season of rice, and nil to zero during the growing stages of rice. However, it was also observed that free range ducks has higher fertility percentage by a range of 5%-10% than completely confined ducks. This might be attributed to ease of movement and freedom of ducks in free range, taking into account that the commercial duck raisers in the abovementioned areas visited allocates only 1 sq.ft. of space per duck in its housing management. The Enterprise shall adopt the commonly recommended floor space allocation of 2.22 sq.ft. or 5 ducks per 1 sq.m. to mitigate the effects of complete confinement.

Feeding Management

The Enterprise shall use commercially prepared duck laying pellets to provide consistently the desired nutritional requirements of the flock in order to produce viably quality hatching eggs. Controlled feeding ration of 120-140 grams per duck shall be observed to provide enough nutritional amounts to the ducks while preventing it from getting fat that may hamper its laying efficiency. Laying ducks are very sensitive to changes in its nutritional intake in terms of quality and quantity. Observations were made by duck raisers, that abrupt changes in feed type intake of laying ducks results in stoppage of egg laying and start of molting stage. This might also be the reason for the decline of the duck raising industry in the Laguna Bay areas. The restrictions imposed in the harvest of shells from Laguna Bay had deprived the duck raisers from its cheap main source of feeding material for the ducks, while sticking to its traditional feeding system of using self mixed feeds. In contrast, the vibrant commercial duck raising industry in Pampanga area have relied primarily on commercial duck layer pellets for its feeds requirement.

It is recommended that alternative feeds development shall be pursued by the Enterprise by subjecting 5% of its breeder stock to farm-mixed layer ration.

Hello classmates, some proposed and suggested alternative feed formulations are good material for our thesis, that is if we can survived the first 3 years in our college here.

Care and Handling of Hatching Eggs

Proper care and handling of eggs is important for good hatchability of eggs. The following procedures shall be undertaken:

· The flockman in clean clothing shall wash his hands with soap and water prior to entering the duck house.

· Eggs shall be collected at 7:00 a.m.

· Flockman place eggs in clean trays stack in a trolley as he gathers the eggs.

· Gathered eggs shall be brought to the egg segregation room.

· Good quality eggs shall be segregated from cracked, off-shaped, off-sized, nd heavily soiled eggs.

· Good quality hatching eggs shall then be delivered to the hatchery eggs store room.

· Flockman shall bring the segregated eggs from hatching eggs for disposal

2.1.b. HATCHERY OPERATION

The Philippine Mallard or Pateros duck is an egg-type duck that have lost its broodiness characteristic. They do not sit on their eggs to hatch them. Pateros duck hatching eggs shall be artificially incubated for 28 days until these are hatched. The hatching eggs are placed in the setter for the first 25 days of incubation, then it is transferred to the hatcher until eggs are hatched on the 28th day of incubation.

The Enterprise shall procure modern incubators, setter and hatcher manufactured in China, for its hatchery operation. Modern incubators have built-in microcomputers that auto-regulate inside temperature, relative humidity and turning of eggs. These features in modern incubators have made hatchery operation now more convenient and easy.

Temperature

The temperature inside the incubator stays at a constant 99 to 99.5 degrees Fahrenheit (37.22 to 37.5 degrees Celcius) for the first 25 days. On the 25th day, the temperature should be reduced to approximately 98.5 degrees Fahrenheit (36.94 degrees Celcius) and should be kept constant for at least 3 days until the eggs are hatched.

Relative Humidity

The humidity inside the duck eggs during the first 25 days of incubation should be adjusted at 86 percent. On the 25th day, the humidity should be adjusted to about 94 percent for the remaining 3days.

Egg Turning

During the first 25 days of incubation, the eggs inside the setter are automatically turned controlled by the microcomputer built-in inside the setter. a few times. This process is used so that all the different sides of the egg can be heated and the embryo shall not stick to the eggshell. The eggs are no longer turned when they are transferred into the hatcher, this is the hatching stage.

Candling

After the seventh day of incubation, a small, bright flashlight must be placed on top of the hatching duck eggs so that the light can shine through the egg to check what has been the fertilization progress.

In order to find out infertile eggs or dead embryos in the early stage, candling is an essential work. Candle the duck eggs on the 8^th day of the incubation and then compare the results against the standard candling map or the following instruction, then judge which eggs should be taken out, to avoid contamination to other healthily-developed eggs. If the embryo develops too fast, usually the reason lies in excess temperature, vice versa. During incubation, the air sac size should increase, because the moisture evaporates from the eggs. If the air sac size increases too rapidly, it implies that the humidity is probably too low. On the contrast, the slow air cell expansion usually results from high humidity. These parameters should be adjusted according to candling results, so as to remedy the situation, to prevent deterioration.

After Hatching

After the hatching process, the newly born ducklings should be kept warm in a dry storage area prior to delivery.

Ok classmates we will have a serious meeting about this and let's see how we can connect to this based on our limitations and present situation but I believe we can do some livelihood projects out of this to support our finances.

THE INVESTMENT AGENDA

Breeder & Hatchery Schedule of Investment


Capacity:	500 Layers	1,000 Layers

Total Investment	2,071,625	2,518,542



Land	1,000,000	1,000,000
uildings:
Duck House	250,000	400,000
Hatchery House	170,000	170,000
Equipment:
Incubator Set	192,000	261,744
Generator	70,000	120,000
Cooking Equipment	30,000	30,000
Airconditioner 3/4HP	12,000	12,000
Pre-Operating Expenses	60,000	60,000
Op. Capital: Breeder Stock	84,375	168,750
Operating Expenses	203,250	296,048
(2:3 months operation)

Break Even Point of Production is noted to be at 157 Eggs annually

Potential Fund Sources of the Enterprise

· Bureau of Local Government Finance -- - - P8B/annum budget for LGUs

· Small & Medium Enterprises Dev't Corp

· Department of Labor and Employment

· Dev't Bank of the Philippines

· Land Bank of the Philippines

· Commercial Banks

· PARFUND

Projected 5 Years Balance Sheet for the Enterprise to be Located in

Cagayan de Oro & Pagadian City

DUCK BREEDING & HATCHERY - 1,000 Layers
PROJECTED BALANCE SHEET
AS OF YEAR ENDED DECEMBER 31

A S S E T S	Year 1	Year 2	Year 3	Year 4	Year 5

CURRENT ASSETS
Cash in Bank	647,738	721,735	792,434	1,401,024	2,005,812
Breeder Stock	50,625	50,625	50,625	50,625	50,625
Total Current Assets	698,363	772,360	843,059	1,451,649	2,056,437

PROPERTY, PLANT & EQUIPMENT
Land	1,000,000	1,000,000	1,000,000	1,000,000	1,000,000
Duck House (net)	342,857	285,714	228,571	171,429	114,286
Hatchery House (net)	145,714	121,429	97,143	72,857	48,571
Incubator Set (net)	209,395	157,046	104,698	52,349	-
Generator (net)	96,000	72,000	48,000	24,000	-
Cooking Equipment (net)	20,000	10,000	-	-	-
Airconditioner 3/4HP (net)	9,600	7,200	4,800	2,400	-
Total Farm Property & Equipment	1,823,567	1,653,389	1,483,212	1,323,035	1,162,857

TOTAL ASSETS	2,521,929	2,425,749	2,326,271	2,774,683	3,219,294


LIABILITIES & OWNER'S EQUITY

Current Liabilities	1,086,834	543,417	-
Accounts Payable	2,625	14,625	26,625	38,625	50,625.00

Long Term Liabilities
Loans Payable PARFUND	747,838	373,919	(0)	0	0
Loans Payable Financial Institution	338,995	169,498	-	0	0
Total Long Term Liabilities	1,086,834	543,417	(0)	0	0

TOTAL LIABILITIES

OWNER'S EQUITY
Capital	1,432,471	1,867,708	2,299,646	2,736,058	3,168,669

TOTAL LIABILITIES &
OWNER'S EQUITY	2,521,929	2,425,749	2,326,271	2,774,683	3,219,294