San Miguel Foods Inc.’s Magnolia’s contract grower, Ofel Dator and her husband Serafin Dator, owners of Ofel’s Poultry Farm, began breeding chicken in 2005 with just minimal capital on hand. Today, Ofel’s Poultry Farm is earning well over P2.5 million a year. Being a San Miguel Foods Inc’s poultry contract grower, you can assure the success of your poultry business.

Application Requirements for New Poultry Contract Growers

Contract Growing

I. 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

II. Investment Details

1. Farm Site
   • With a minimum lot area of one (1) hectare
   • Within an agricultural zone
   • One (1) km away from residential area
   • One (1) km away from any nearest poultry or hog farm and related operation
   • With 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 from an SMFI dressing plant :
     • Luzon – 100 km
     • Visayas / Mindanao – 50 km
2. Document Requirements
   • Letter of Intent
   • Completely filled-up application form
   • 2 pcs. 2×2 picture
   • Clear photocopy of latest community tax certificate
   • Mayor’s / Business Permita
   • BIR Form 2303 (Certificate of Registration)
   • DTI Certificate of Business Reg./ SEC Reg. Articles of Partnership or Incorporation (for corporation)
   • Environmental Compliance Certificate (ECC)
3. Bond Collateral
   • Cash (Php 15.00 per bird) or
   • 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 property is not in applicant’s name
4. Poultry House
   

   Minimum volume	36,000 bird capacity / Building
   Design specifications	East West orientation 52 ft. width 450 ft. length Tunnel Ventilated Broiler House

5. Project Feasibility (for ground up)52 x 450 feet ( 36,000 broilers ) with fully automated equipment
   

   Initial investment cost per broiler	382.00
   Performance	Fair	Average	Above Average
   Gross earning per year	P15	P17	P19
   Less Operating Expenses	P6.50	P6.50	P6.50
   Net earning per batch	P8.50	P10.5	P12.5
   Net earning per year ( 6.5 batches*/ year ) *estimate	P55.25	P68.25	P81.25
   Payback period in years	6.9	5.6	4.7

6. 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
      • Competitive payment agreement
      • 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

III. Contact Details

For further information, please contact:

Jose Eric R. Cariaso
09178123161
Manager, Capacity Development Group

SMFI Calamba Office4th Floor DenCris Business Center Brgy. Halang, Calamba City, LagunaTelefax-(049) 834-2010/4300Luzon Operations:

Visayas – Mindanao Operations:

IV. Application Form

Area Contact Person Email

Updated as of 08/13/2020

Source: Magnoliachicken.com

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