DR. ROBERT LO, DVM, ME, FPCPPFounder, President and General Manager of Red Dragon Farm

Federation of Asian Veterinary Association Councilo Chairperson, 2011 Cebu Convention

Southeast Asia FMD Subcommission, OIEo Private Sector Representative, 2003-present

United Broiler Raisers Association (UBRA)o Founding Member, Member Board of Director 2000-Present

Philippine Veterinary Medical Association (PVMA)◦ President, 2003-2004◦ Vice-President/ President-elect, 2002-2003◦ Treasurer, 2001-2002◦ Director, 1999-2001 Hog Export Board, Department of Agriculture◦ Member, 2004-2006 Regional Animal Disease Control & Emergency Advisory Council, Region

III◦ Chairperson, 2004-2007

Most Outstanding Professional for Veterinary Medicine (2008)o Professional Regulation Commission

Distinguished Professional Service Award (2007)o Philippine Veterinary Medical Association

No.2, Philippine Veterinary Board Examination◦ Professional Regulation Commission, 1984

Source: Manila Bulletin, August 14, 2005

From a humble beginning…

…to a success story

AGENDA

COMPANY PROFILE

RED DRAGON FARM is a medium scale enterprise involved in commercial livestock production. Its principal office is located at Barangay Lara, City of San Fernando, Pampanga, Philippines.

1985- Quail egg production 1988- Poultry contract grower 1991- Devastation by Mt. Pinatubo eruption 1994 – Red Dragon Poultry 1996 – Small-scale feedmill inside per farm 1996 – Third party breeder/hatchery 1997- Half-million chicken population 1998 – Red Dragon Swine Farm (200 sow level) 2000 – Loadstar Feedmill & Veterinary Products 2001 – Expansion to 2,000 sow level 2003 – 1st to get carbon credit for Kyoto Protocol 2005 – Fresh Options in Region III 2008 – Central Depot 2009 – Fresh Options in Metro Manila

MISSION AND VISION

MISSION

• We are an integrated farm – to – meatshop business operations.

• We aim to continuously satisfy the changing needs of our MEATiculous customers by offering value-for-money basic meats and processed products from our home-grown poultry and hogs.

• We strive to delight our customers with excellent customer care.

• We will make available to our customers, safe food products that will adhere to globally accepted standards on food safety.

• We will institutionalize good manufacturing practices and purposively seek improvements in the way we do things by encouraging innovation and creative thinking.  

VISION

• We will be the choice source by households for fresh meat, value-added poultry, pork and beef products in the communities where we operate.

• We will be the undisputed number 1 integrated farm-to-store operations in the provinces of Pampanga, Tarlac, Bulacan, Olongapo, Bataan and Zambales by 2012.

• The number 1 brand in the categories where we participate, by 2015.

OPERATIONS WORKFLOW

RETAIL STORES

RED DRAGON FARM

Lodestar Feed Mill & Veterinary ProductsSince 2000

FEEDMILL

HogHog

Chick Booster Crumble

Broiler Starter Crumble

Broiler Finisher Pellet 1

Broiler Finisher Pellet 2

Pre-Starter Pellet

BroilerBroiler

Starter Pellet

Grower I Pellet

Lactating Pellet

Finisher Pellet

Gestating Pellet

Booster Pellet

Grower II PelletVeterinary Medicine

Veterinary Medicine

Multivitamins

Antibiotics

Feeds Production

Swine Feeds: 800 bags/day Broiler Feeds: 850 bags/day Water Soluble: 15 kg/day

POULTRYSince 1988

Brooding Stage

(Day 1-16)

Growing Stage (Day 17-31)

Harvest Stage (Day 32-40)

* 900k farm capacity with age evenly distributed to meet market demands

Since 2001

RED DRAGON FARM

7 – 8 months Gilts + Boar

Gestating Pigs (114 days) Farrowing at 114 days Lactation Period 1-22 days

Nursery (23-85 days)

Sows 5 days

Dry Period Breeding

Heat (Estrus)

SITE 1

MARKET100 kg

SITE 2

Growing (86-160 days)

Basic Processing

Dressing of chicken

Slaughtering of Hog

Slaughtering of Cattle

HEADS KILOS

320,000 460,000

HEADS KILOS

2,200 210,000

HEADS KILOS

95 35,500

DRESSING/SLAUGHTERINGVOLUME PER MONTHLIVE ANIMALS

FURTHER PROCESSING

Head 11,857.51 6.95%Pata Front 7,031.49 4.12%Pata Hind 8,303.27 4.86%Pigtail 2,795.12 1.64%Pork Chop 22,756.65 13.33%Pork Steak 11,653.41 6.83%Sinigang Cut 7,840.86 4.59%Spare Ribs 6,769.06 3.97%Tenderloin 1,800.45 1.05%Liempo 27,440.80 16.08%Pigue SO 33,742.87 19.77%Kasim SO 17,731.78 10.39%

Beef Primal Cuts

Bf Tenderloin Lomo 170.02 0.99%Bf Porter House 486.84 2.84%Bf Tbone Steak 574.37 3.35%Bf Prime Rib 879.23 5.13%Bf Sirloin 941.44 5.49%Bf Round, Top 1,078.27 6.29%Bf Round, Bottom 546.08 3.19%Bf Round 649.82 3.79%

Bf Brisket 1,950.13 11.38%

Bf Shin 295.64 1.72%

Bf Shank 1,269.05 7.40%

Bf Camto 863.54 5.04%

Bf Chuck Ribs 660.10 3.85%

Bf Barbecue Steak 766.81 4.47%

Bf Beef Neck 750.83 4.38%

Bf Short Ribs 1,642.29 9.58%

Bf Beef Bone 1,066.14 6.22%

Bf Marrow 396.46 2.31%

Bf Round, Beef Eye 307.67 1.80%

Bf Pot Roast 504.11 2.94%

Bf Bones 348.54 2.03%Knee Cup 120.02 0.70%TOTAL 16,267.39 94.91%

12 Primal Cuts

9 pcs Cuts

22Primal Cuts

Part Percentage

Breast 27%

Thigh 27%

Drumstick 17%

Soup pack 8%

Wings 14%

Neck 6%

RECOVERY Per Part

PORK

CHICKEN

BEEF

28 EXISTING PRODUCTS AND CONTINUOUSLY DEVELOPING NEW PRODUCTS

Embotido Line Pork Embotido Chicken Embotido

Skinless Longganisa Line

Pork Skinless Longganisa Chicken Skinless

Patties Pork Patties Beef Patties

Tapa Line Pork Tapa Beef Tapa

Longanisa Line Canton Longganisa Ilocos

Lumpia Line Pork Lumpia Chicken Lumpia

Tocino Line Chicken Tocino Pork Tocino

Hotdog Line Beef Hotdog Cheese Hotdog Chicken Hotdog

Meat Buddies Meat Rolls Meat Patties Chorizo Pilipino Macao Longganisa

RED DRAGON FARM

COLD STORAGE

LOGISTICS

56 Stores Fleet: 16 refrigerated vans,

9 routes Number of SKU: 80 Approx. 400 To 600 kg per store Store Distribution

◦ Pampanga: 28 Stores ◦ Bulacan: 4 Stores◦ Olongapo City: 8 Stores◦ Bataan: 3 Stores ◦ Tarlac: 6 Stores ◦ Nueva Ecija: 2 Stores◦ Metro Manila: 5 Stores

RED DRAGON FARMSince 2005

RETAIL OPERATION

S

56 StoresPOS system w/ 178 SKUUpright chiller/freezerOpen 7 days a week 7AM-8PM

PORK VAPCHICKENBEEF

PAR Analysis

ConsolidatedActual Sales Report

ConsolidatedBudgeted Sales Report

Cost and BudgetSpecialist

Accounting Staff – Sales (Meatshop)

Fresh Options

Hotel Restaurant Institutional(HRI)

Accounting Staff- Sales (Animal Production)

Feedmill

Swine

Poultry

Item Sales Reportper Branch (e.g. FO Guagua)

generated thru POS

Internal Transfer FormGenerated by Feedmill Clerk

Targeted Sales Monthly Budget

Tally SheetsGenerated by Farm Checkers

Delivery ReceiptsGenerated by Farm Checkers

Sales InvoicesGenerated by HRI personnel

JET REPORT

FRESH OPTIONS

HRI FEEDMILL POULTRY SWINE

SalesReport

Expenses

ProductionReport

SalesReport

Expenses

ProductionReport

SalesReport

InventoryReport

Expenses

ProductionReport

SalesReport

MOR

Expenses

HatcheryReport

Chick Loading

File

PayrollCommission

Feeds & Medicines

Consumption

SalesReport

BatchPerformance

Report

Expenses

BreedersReport

Feeds & Medicines

Consumption

MortalityRecord

Population

SwineCoordinator

Accounting Staff Sales

AccountingStaff Sales

AccountingStaff Sales

AccountingStaff Sales

AccountingStaff Sales

AccountingStaff

Payable

AccountingStaff

Payable

Central Depot

Coordinator

Central Depot

Coordinator

FeedmillClerk

AccountingStaff

Payable

FeedmillClerk

AccountingStaff Sales

PayrollClerk

AccountingStaff

Payable

AccountingStaff

Payable

ACTUAL BUDGET

EXPANSION PLANS

300% increase in sow level (2,000 to 6,000) 66% increase in broiler capacity (900,000 to 1.5M) 30% increase in feed mill warehouse capacity Adopt new technology in poultry and swine

production Environmentally Control Housing Segregated Parity Management

36 new Fresh Options outlets Expansion in other channels for marketing

Village distributorship Franchising

Further improvement in packaging, meat processing Blast chilling Vacuum packing Injection marination

Expansion in IT infrastructure Data integration through business solutions Database and application servers

BUSINESS CHALLENGE

We are in the poultry and swine businesses. Four main divisions are feed mill (1), poultry farms (12),

swine farms (2) and meat shops (45). We do not have an integrated IT. We aim at IT upgrade to:

◦ give us timely updates to improve management decisions◦ have better systems management and controls◦ design and adopt best practices ASAP

With IBM expertise in IT ( hardware, software, human ware, design and implementation) it is possible.

BUSINESS SOLUTIONS

ERP System (Enterprise Resource Planning) BI (Business Intelligence) International Organization for

Standardization Certification◦ ISO 9000 (Quality management system)

Source: http://www.getfast.co.uk/images/erp.jpg

Source: http://www.logicmatter.com/images/database_and_business_intelligence.jpg

EXPECTED RESULTS

Fragmented processes

Numerous approvals and audits

Bottlenecks

Streamlined automated business process

PARTNERSHIP WITH TECHNOLOGY INNOVATION

Hardware◦ Servers

Database Server Application Server Collaboration Server

Software◦ Application Software◦ Business Intelligence Software

Q & A

Thank you!