Executive Summary

The Municipality of Magpet, is a 1st class municipality in the province of Cotabato, Philippines. .
Nestling at the foothills of Mt.Apo, the municipality has a total land area of approximately 75,536
hectares of vast agricultural and forestlands. It is a landlocked municipality located at the
boundary of the provinces of Cotabato and Davao del Sur. The agro-industrial establishments in
the municipality is mainly the DOLE STANFILCO banana plantation occupying estimated of
about 50 hectares. The packing plants are considered pollutive but non-hazardous owing to the
chemicals used to preserve the bananas.

Livestock production is limited to the backyard level and the city relies on adjoining areas for its
supply of meat. At the provincial level, however, there is an overproduction of livestock based
on data for both sufficiency level and the actual production volume.

The Need of a Slaughterhouse

The Slaughterhouse of Magpet was established in the year 2005 together with the approval of
Ordinance No. 243 Series of 2005 entitled An Ordinance Enacting the Municipal Market Code of
Magpet, Cotabato. In this ordinance Slaughter and Coral Fees was included to maintain its
operation and to give revenue to the LGU which include permit to slaughter, slaughter fee, coral
fee and post-mortem inspection fee. Although the slaughter process flow and the structure is
ineffective compare to what currently NMIS imposed, the LGU try to organize the process flow
to ensure the cleanliness of carcass. However, the physical structure, drainage and the location
of the slaughterhouse is not strategic and ideal for both meat products and pubic safety.
Physical structure is an open ventilated facility without proper drainage canal and the location of
the facility was in the Public Market Area and was near to the residential area which is prone to
meat contamination and may cause smell disturbance and sickness to the nearby resident due
to contaminated air brought by the facility.

Quality and cleanliness of meat products are vital factor on meat industry to avoid the risk on
contamination which could bring different and serious human illness. The current
slaughterhouse is a very high risk facility and not following on NMIS standard. The LGU should
implement facility that promotes proper and sanitized meat products and deliver quality and safe
meat products.
Establishment of “AA” Slaughterhouse

The establishment of “AA” Slaughterhouse could counter the monopolization of market of live
animals through encouraging more outside buyers to come. For the LGU, it will generate more
income through collection of imposed fees for the services.

On the other hand, if there is an existing standard facility like “AA Slaughterhouse, outside buyer
could source out livestock stock on locality and use the slaughter service which could be
beneficial for both the farmer and the economic enterprise. As a result, farmer can enjoy the
exact price of live animals because outside buyer would try to purchase stock within the
municipality to incur less transportation expense.

Mission of Magpet “AA” Slaughterhouse

By all means, provide top-notch services and state-of-the-art facilities conducive for attaining
quality assured meat by-products. Uphold public health and safety by ensuring all operations
are properly executed and in accordance with the NMIS guidelines.

Manifest effectiveness and efficiency at all times to accumulate trust and repeat patronage.
Most importantly, make the municipality known for bringing par excellence in terms of abattoir.

Products and Services Offering

We are in the agribusiness industry to make profits and we will ensure that we do all that is
permitted by the law in the Philippines to achieve our business aim and objectives. Our products
and services offerings are listed below;

 Slaughtering animals
 Producing cuts of beef
 Producing cuts of pork
 Producing cuts of other red meats
 Selling by-products from the slaughtering process
Demand Study

The demand study determines the possible number of livestock that the facility can slaughter.
The catchment area is primarily the Municipality of Magpet and includes the municipalities of
Arakan, President Roxas, Antipas and Kidapawan City, which are within a 30-minute commute
to the slaughterhouse.

The study used the population projections of the Bohol Provincial Planning and Development
Office (PPDO) instead of the Philippine Statistics Authority’s (PSA) since the former is
conservative at 0.097 percent growth rate compared to 2.3 percent of the latter. However, the
study used the national per capita meat consumption of 5.68 kilos pork, 0.52 beef and 0.15 kilos
carabeef (carabao meat) in the absence of local estimates.

The study also considered other factors to forecast additional demand aside from projected
local meat consumption. These demand factors include a segment of the tourists visiting
Cotabato Province, buffer demand from neighboring towns. The demand projection also did not
account for occasional increases in meat consumption during fiestas and other celebrations like
Christmas holidays and graduation rites

Financial Study

The low growth Scenario starts in the 1st year upon start of the operation. With an average of 3
cattle, 15 hogs, 15 goats and 15 chickens with the gross operating profit of Php 1,288,594.75
tax deducted. An increase of 20% per year on the volume of chickens and hogs per year while
cattle and goats will have an increase of 50%, the total forecasted revenue by the 10 th year will
amount to Php 6,479,425.37 tax deducted.

The in-between years, as stated in the projected revenue, there will be an increase in the
revenue for the enterprise as there will be an increase of an approximate of 20% in the volume
of heads for hogs and poultry yearly, while Cattle and Goat will be a 20% increase every 3 years
or so. . Annex A and B will be the detailed breakdown of the Profit and Loss Statement from
Year 1 to Year 10 respectively and the Projected Cash Flow per year with an expected net
revenue from Php1,288,594.75 on Year 1 to Php6,479,425.37 by the end of Year 10.
The marketing strategy of having a new slaughterhouse that is sanitary to the consumption of
the public not only in Magpet but also targeting the neighboring cities and municipalities will be
the basis for the increase in the volume of production.