Feasibility study of establishing an Artificial Insemination (AI) center for carabaos in San Ildefonso, Bulacan, Philippines

Abstract

The productivity of the carabao subsector is influenced by several constraints such as social, technical, economic and policy factors. The need to enhance the local production of carabaos will help local farmers to increase their income. Thus, producing thorough breeds of carabaos and improving it genetically is the best response to these constraints. This study was conducted to present the feasibility study of establishing an Artificial Insemination (AI) Center and its planned area of operation in Brgy. San Juan, Ildefonso, Bulacan. The market, production, organizational and financial viability of operating the business would also be evaluated. This particular study will provide insights in establishing an AI Center. Included in this study is the identification of anticipated problems that could affect the business and recommendation of specific courses of action to counteract these possible problems. Primary data were obtained through interviews with key informants from the Philippine. Carabao Center (PCC). To gain insights about the present status of an AI Center, interviews with the technicians of PCC and private farm were done to get additional information. Secondary data were acquired from various literatures and from San Ildefonso Municipal Office. The proposed area would be 1,500 square meters that would be allotted for the laboratory and bullpen. The AI Center will operate six days a week and will be opened from 8 AM until 5 PM. However, customers or farmers can call the technicians beyond the office hours in case of emergency. The total initial investment of Php 3,825,417.39 is needed in establishing the AI Center. The whole amount will be sourced from the owner's equity. Financial projection showed an IRR of 30% with a computed NPV of Php 2,415,597.00 and a payback period of 3.97 years. Based on all the market, technical, organizational, financial factors, projections and data analysis, it is said that this business endeavor is viable and feasible.