How to Start a Contract Poultry Business in the Philippines - Food Security (2024)

So you are here because you want to start your ownpoultry business but don’t know where to start? If you haven’t visited the Magnolia page that contains a detailed business plan, then continue reading.

Why your poultry business must be under the contract like with Magnolia

If you have enough capital, building a poultry business under contract with Magnolia is the best poultry business option. The major benefit is that you will be provided with the best technology out there, the sure buyer of your product, and other needed support.

How to Start a Contract Poultry Business in the Philippines - Food Security (1)

Most poultry businesses fail because they have no customers, or their technical knowledge is not enough to operate an independent poultry business.

If you have idle land which is at least one hectare and have the needed capital to start up, continue reading.

Application Requirements for New Poultry Contract Growers

(Note: All of the requirements mentioned here are available by contacting your nearest SMFI office, with the contact information provided below)

APPLICATION PROCESS

1. Accomplishment of Contract Growing Application Form
2. Site or Farm Inspection
3. Approval of Proposed Site or Farm
4. Submission of Letter of Intent
5. Issuance of Letter of Commitment
6. Submission of Permits
7. Construction of Poultry House
8. Submission of Bond or Collateral
9. Contract Signing
10. Seminar
11. Chick Placement

INVESTMENT DETAILS

Farm Site

• With a minimum lot area of one (1) hectare
• Within an agricultural zone
• One (1) km away from the residential area
• One (1) km away from any nearest poultry or hog farm and related operation
• With a reliable source of electricity and adequate potable water
• Must have an all-weather road (to and from and within the farm), passable to a 10-wheeler truck
• Must be within the following radius of an SMFI dressing plant :
Luzon – 100 km
Visayas / Mindanao – 50 km

Document Requirements

• Letter of Intent
• Completely filled up application form
• 2 pcs. 2×2 picture
• Clear photocopy of the latest community tax certificate
• Mayor’s / Business Permit
• BIR Form 2303 (Certificate of Registration)
• DTI Certificate of Business Reg./ SEC Reg. Articles of Partnership or Incorporation (for a corporation)
• Environmental Compliance Certificate (ECC)

Bond Collateral

#1. Cash (Php 15.00 per bird) or
#2. Real Estate Mortgage (REM)
• Original Transfer Certificate of Title (TCT)
• Current Year’s Tax Declaration
• Tax Clearance
• Tax Receipt
• Special Power of Attorney (SPA), if the property is not in the applicant’s name

Poultry House

SMFI and Contract Grower Responsibilities

1. SMFI

– Building plans, design, and specifications
– Quality day-old chicks
– Broiler feeds and nutrition program
– Medicines and vaccines
– Technical assistance
– Laboratory services
– Information recording materials
– Ready market
– Competitive payment agreement

2. Grower

– Agricultural land (1-2 hectares)
– Poultry houses and facilities
– Feeds warehouse
– Electricity and water system
– Labor and security
– Poultry equipment
– Maintenance of farm facilities, roads and equipment
– Proper farm management

CONTACT DETAILS

For further information, please contact:

Jose Eric R. Cariaso
09178123161
Manager, Capacity Development Group

SMFI Calamba Office

4th Floor DenCris Business Center
Brgy. Halang, Calamba City, Laguna
Telefax-(049) 834-2010/4300

Emeliana S. Amarillo
Regulatory Affairs Coordinator / 09175075136

Rojel P. Surigao
Regulatory Affairs Coordinator / 09178514378

Luzon Operations:

Pangasinan, Tarlac, Zambales, Bataan, La Union & Ilocos region
Rowell A. Gabasan / 09178678347

Nueva Ecija, Pampanga, Isabela, Nueva Vizcaya
Engr. Vladimir A. Bayan / 09178258441

Bulacan, Rizal & Laguna
Rojel P. Surigao / 09178514378

Quezon
Nathaniel Gil P. Arca / 09771991567

Batangas & Cavite
Hermin T. Dimaunahan / 09175111076

Bicol region
Eugene P. Camerino / 09054633076
Visayas – Mindanao Operations:

Visayas & Southern Mindanao
Edroel M. Dilla / 09177243169

Northern Mindanao
Gary M. Patam / 09175117407

APPLICATION FORMS

Request the application form here.

For LUZON Area:
Contact Person: Dr. Jorge Manahan
Email Address: [emailprotected]

For VISAYAS Area:
Contact Person: Engr. Eugene P. Camerino
Email Address: [emailprotected]

For MINDANAO Area:
Contact Person: : Mr. Philip P. Sardeñola
Email Address: [emailprotected]

Contact the person nearest to your location if the above details cannot give the specific information you need like minimum capital and other things.

A family in Central Negros started with just a small building and after three years, the whole family is already earning at least ₱2.8 million yearly net income. You can too if you have an interest in this business.

This type of business is ideal for retiring Overseas Filipino Workers (OFW), especially seafarers and other professionals who saved money for their plans.

Entering a business is difficult especially if you have no technical knowledge. Magnolia will provide everything you need if your land and structure pass their inspection.

Do not invest your hard-earned money into some kind of business that promises you a big return. There is no such kind of business other than investment and scams. The Philippines needed hundreds of thousands of dressed chickens every day – you can be one of the chicken suppliers one day if you start now.

Starting a Contract Poultry Business in the Philippines FAQ

The following questions and answers could help you understand more about starting a contract poultry business in the Philippines

Is poultry farming profitable in the Philippines?

Absolutely. Poultry farming, either free-range, layers, or broiler production is always beneficial because people need food, and poultry is one of the main food sources. The only drawback is when your flock is hit by some serious health issues like bird flu and avian pests.

How much does it cost to start a poultry farm in the Philippines?

How much money you want to spend on starting a poultry business depends on the size of your flock. If you start with 1,000 birds, prepare to spend at least P70,000 as initial capital. This includes the building, chicks, and feeds. The amount could range from a couple of hundred thousand pesos to millions if you want to go big like 10,000 birds and above.

How many chickens do I need to make a profit?

Since we are talking about contract growing here, starting with 10,000 heads will be a good start but will not make you a profit in the first harvest because of your expenses in construction. If you want to go on a small scale, however, even raising 100 chickens could make you a profit. making a profit depends on many factors but raising chickens always makes a profit. How big depends on how much money you put into it.

How much space do 1000 chickens need?

For 1,000 standard giant chickens, you will need at least 140 square meters or 1,506 square feet. It will work wonders for your flock if your chicken housing can give your birds extra space. A densely populated poultry farm can create lots of problems like heat stroke, stampedes, etc.

Which poultry is most profitable?

This question has no definite answer because all types of meat chicken can be profitable if raised properly. In the Philippines of course, the most profitable is the Cornish cross which is usually from Cobb, or what we call the 45 days broiler chicken.

How long does it take for a broiler to grow?

broiler chicken or meat chicken takes 38 to 40 days to reach slaughter age. This is the reason why this white broiler is called 45 days because it only takes 45 days maximum to reach the slaughter age. 38 to 40 days is ideal and 45 days sometimes can lead to a loss due to spending on more feeds.

See Also:

How to Start a Contract Poultry Business in the Philippines - Food Security (2024)

FAQs

How far should a poultry farm be from a residential area in the Philippines? ›

Commercial piggery and poultry farms shall be at least 1,000 meters away from the built-up areas (residential, commercial, institutional and industrial) as designated in the Municipality's Comprehensive Land Use Plan while backyard poultry and piggery farms shall be at least 500 meters away from such built-up areas.

Is contract chicken growing a good investment? ›

In fact, a 2022 study by Agriculture Economist, Dr. Thomas Elam found that the median income of contract poultry farmers was significantly higher than both all farm households and all U.S. households. Today, we pay nearly $820 million annually to the more than 3,600 poultry farmers who contract with us.

How much capital do I need to start a poultry business in the Philippines? ›

Ranging capital needed: The initial capital needed for starting a poultry farm can range from ₱1,000,000 to ₱5,000,000, depending on the scale of operations and facilities required.

Which type of poultry farming is most profitable? ›

In the long term, layer farming on a big scale will be more profitable and generate more money than broiler farming since the birds may be sold as meat after producing eggs, albeit at a lower price than broilers.

What is the most lucrative poultry business? ›

Broiler rearing is seen as one of the most profitable businesses in the poultry line of business. It is seen to be an interesting, and profitable investment whether it is on a large scale or small scale, as it is a rewarding investment.

What is a contract poultry producer? ›

A poultry growing arrangement (“contract”) is a grow-out contract, marketing agreement, or other arrangement. A live poultry dealer (“company”) contracts with poultry growers to raise live poultry for slaughter.

Is backyard poultry legal in the Philippines? ›

Commercial piggery and poultry farms shall be at least 1,000 meters away from the built-up areas (residential, commercial, institutional and industrial) as designated in the Municipality's Comprehensive Land Use Plan while backyard poultry and piggery farms shall be at least 500 meters away from such built-up areas.

How much profit for a chicken farm in the Philippines? ›

Gross profit

Leading poultry farming research declares that feed contributes 60-70% of the cost of production. So, taking this into account we can estimate: Gross profit per egg = Php. 5.71 – Php.

Is poultry a good business in the Philippines? ›

Poultry production contributes to the Philippines by providing income and employment opportunities, meeting domestic demand for poultry products, and supporting economic growth. Poultry production contributes to the economic stability of the Philippines and is a major part of the livestock industry.

How much does a contract chicken farmer make? ›

Gross income per house will generally range from $28,000 to $35,000 annually. Thus, net returns per house are generally minimal ($3,000 to $10,000) during the 10- to 15-year payback period. Returns per house are much more substantial once the house is paid for.

How much does it cost to start a poultry farm? ›

For a few birds, the cost to start a poultry farm would be between $5,000 and $30,000 to start a small-scale conventional poultry production enterprise.

How many eggs can 500 layers lay in a day? ›

The time needed to brood, grow and feed 500 birds or to collect an average of 280 eggs a day at production can be managed easily. It normally takes one to two hours to feed, clean, and collect eggs daily.

Top Articles
Latest Posts
Article information

Author: Rob Wisoky

Last Updated:

Views: 5729

Rating: 4.8 / 5 (48 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Rob Wisoky

Birthday: 1994-09-30

Address: 5789 Michel Vista, West Domenic, OR 80464-9452

Phone: +97313824072371

Job: Education Orchestrator

Hobby: Lockpicking, Crocheting, Baton twirling, Video gaming, Jogging, Whittling, Model building

Introduction: My name is Rob Wisoky, I am a smiling, helpful, encouraging, zealous, energetic, faithful, fantastic person who loves writing and wants to share my knowledge and understanding with you.