A veterinary medicine by profession started an integrated farming with his twenty nine hectares land located in Malabago Proper Lamut, Ifugao. He started as a contract grower from swift company way back 1998.
The initial inputs are the housing which cost 200,000.00 with a capacity of five thousand heads. Electricity, LPG and labor cost are other expenses incurred in this sector of agribusiness. But the company provides feeds until its maturity.
It has a good output for the starting years but it didn’t end well because of demand elasticity. Oversupply dramatically decreases the market price of products, which is a primary cause of business trouble. The family took a vacation in United States after sometime.
They open his farm for rent for more than three years. After the vacation, he ventured with another company as a contract grower.
He was convinced by Bounty Fresh who offered a fair gain and incentives through performance base focusing on average live weight, mortality rate and feeds saved within the whole feeding period. During harvest time the bounty truck will pick up the chicken accompanied by a trusted person to testify that all heads are alive until it reaches its destination. The company is also responsible for the marketing after the harvest period.
There are minor problems encountered such as lameness of the chickens. The probable cause as he said is because of the feeds intake that produces overweight chickens. Another cause is that chicks are transferred at an early stage from “ipa bed” to the chicken house. There are instances that they easily get wounded because they have delicate skin. Chickens injured near their selling time are considered sold as long as it meets the standard weight, otherwise it would be rejected. Another problem is the heatstroke especially during summer time. To prevent this they use insulation foam ceiling in their chicken house.
On the profitability side of the business, the maximum net income is ten pesos per bird (net), while six pesos is the lowest. Chicken manure are also open for sale.
His caretakers are eleven (11) people who are assigned to fifty six thousand (56,000) heads. For him workers are the strategic factor to increase business performance, he emphasized that it is better to have a lazy workers than dishonest one. Fortunately, he had loyal people who stayed with him for ten years.
No major problems were experienced by the contract grower. He is motivated by the terms that the company provides. First, the capital need would be lesser as they provide the feeds for the feeding term. Second, they are given additional incentives to meet their requirements. Lastly, after the harvest, the company takes care of marketing.
It is a big advantage that he was a Veterinary Medicine graduate because he is equipped with the necessary skill to manage the health of the chickens. Overall, it minimizes the risk associated with raising the chickens. Needless to say, prevention is better than cure. As a manager, proper awareness is imperative in handling chicks until its maturity stage. The proper timing of eating period should be imposed to minimize cost.
The objective of caring livestock is a means of being socially responsible for the benefit of the consumers. With this business, it gives an opportunity for employment and can improve the skills of the workforce to become potential business owners in the future. The success of managers of agribusiness is its expertise for the whole business operations and giving importance to all the workers as the major segment of effective management.