How to Start a Tocino Making Business

Tocino is made from thinly sliced pork meat marinated with salt, sugar, saltpeter, pineapple juice, nitrate, and other chemical preservatives that kill micro-organisms or delay microbial action. Making tocino is an ideal business to start with limited capital but with big profit. You can sell your homemade tocino to your neighbors, friends, or to offices and even food shops and restaurants.

I. INVESTMENT REQUIREMENTS

A. Cost of Utensils

Measuring cup/spoon for solid & liquid (plastic or stainless steel) = Php 152.50
Spatula = P62.50
Kitchen knife = P67.00
Knife sharpener = P61.25
Kitchen spoon = P76.25
Ladle = P52.00
Tong = P91.25
Stainless bowl 32″ = P305.00
Rectangular tray (plastic or aluminum) = P305.00
Subtotal = Php 1,172.75

B. Equipment & Sources

Weighing scale for spices (0-5 kgs.) = Php 335.75
Weighing scale for meat (1-10 kgs.) = P685.50
11 cu ft. refrigerator (can cure 40 kgs. meat) = P35,065.75
Polysealer (for sealing plastic bags) = P1,753.25
Styrofoam cooler (for transport of meat products) = P305.00
Subtotal = Php 38,145.25

C. Raw Material/Ingredients/Packaging Material

Raw Material
1 kg. Pork (lomo, pigue or kasim) = Php 165.17

Ingredients
Salt 2 tbsps. = P0.77
Curing salt ½ tsp. = P0.15
Sugar 12 tbsps. = P6.86
Phosphate (dissolved in ¼ cup water) 1 tsp. = P0.54
Anisado wine 2 tbsps. = P2.58
Pineapple Juice 2 tbsps. = P0.77
Crushed garlic (garlic powder) 2 tbsps. = P3.81
Vitamin C powder ¼ tsp. = P0.54
Food color, red (optional)
Vetsin (optional) ½ tsp.
Subtotal = Php 181.17

Packaging Material
Polethylene Plastic Bag (6″ x 12″) for ½ kg. meat product = Php 1.50

*Costs may vary depending on current market prices

II. PROCEDURE IN MAKING TOCINO

1. Select good quality meat. Trim and weigh.
2. Slice meat ¼ in thickness.
3. Weigh meat slices and prepare the curing ingredients per kilo of meat.
4. Mix meat with salt, curing salt, phosphate, and Vitamin C (dissolved in ¼ cup water).
5. Add the extenders and mix well until they dry.
6. Add the rest of the ingredients and mix again.
7. Cure at room temperature for 8 to 10 hours or at refrigerator for 8 to 12 hours.
8. Pack tocino in polyethylene plastic bag in ¼ or ½ kg. package. Remove the trapped air inside the bag and seal immediately.
9. Store in freezer.
10. For 2 kilos of tocino, double all ingredients.

III. COSTING AND PRICING

A. Product Costing

Direct Cost

Raw Material (1 kg. pork meat) = Php 165.17
Ingredients used for 1 kg. = P16.00
Packaging Material = P1.50
Total Direct Cost = Php 182.67

Indirect Cost

Labor Cost (P350/day min. wage / 70 kgs. Produced x 2 workers) = Php 10.00
Transportation cost (150/ 70kgs) = P2.14
Water & Electricity (P220 consumption/70 kgs.) = P3.14
Contingency cost (10% of direct cost) = P18.27
Total Indirect Cost = Php 33.55

* Based on 70kgs. average daily produce

A. Production Cost
After adding all ingredients to the 1 kg. meat, the yield of the finished product should weigh to 1.5 kgs.

Total Direct Cost = Php 182.67
Add: Total Indirect Cost = P33.55
Total over the 1.5 kgs. Yield = P216.22 / 1.5kg
Production cost per kg. = Php 144.15

B. Product Pricing
Production Cost per kg. = Php 144.15
Add: 15%-20% markup of the Production Cost = P28.83
Selling Price per kilogram = Php 172.98

Market Price per kilogram = Php 180.00
The higher the volume of production per day (i.e., more than 70 kgs.), the lower the production cost, thus increasing the markup to more than 50%.

** If price per kg. is lower compared with the existing market price, increase markup to 50% or more.

IV. TRAINING INSTITUTIONS

Department of Science and Technology – Science and Technology Information Institute (DOST-STII)
Gen. Santos Ave. Upper Bicutan, Taguig, Metro Manila
Tel. Nos.: (632)837.2191 to 95 / Telefax:
(632)837.7520
Email: vbb@stii.dost.gov.ph
Website: http://www.stii.dost.gov.ph

Animal Product Development Center Bureau of Animal Industry (BAI)
Fernando St., Marulas, Valenzuela City
Tel. Nos.: (632)291-6834 / 293.5489
Email: apdc@manila-online.net

Technology Resource Center (TRC)
TLRC Building, 103 J. Abad Santos cor.
Lopez Jaena Sts., Little Baguio, San Juan,
Metro Manila
Tel. Nos.: (632) 727.6205
Website: www.tlrc.gov.ph

Technical Education and Skills Development Authority for Women Center
37 East Service Rd. South Superhighway, Taguig City
Telefax. No.: (632) 818.8062
Trunkline: (632) 814.4076 loc. 278
Email: tesdawomen@yahoo.com
Website: http://twc.tesda.gov.ph

Source: BUREAU OF SMALL AND MEDIUM ENTERPRISE DEVELOPMENT (BSMED)
3rd Floor, OPPEN Building
349 Sen. Gil Puyat Ave., Makati City
Tel. Nos.: (632) 890.4968 / 897.7596 / 897.1693
Fax No.: (632) 896.7916
Email: bsmed@dti.gov.ph
Website: www.dti.gov.ph