Sunday, August 28, 2011

Coping with the High Cost of Electricity

In this day and age, is there anybody who can survive twenty fours hours without electricity?  I won't.  There are a myriad of reasons why I can't.  But with my electricity expense eating a big chunk of my household budget, I am faced with several options.  One option is to cut down on my consumption of appliances that cost more like the airconditioner and water heater.  Another one is to find alternative sources of power.

1.  Cut down on consumption of aircon and water heater.  Me, cut down on my aircon hours and take a shower of icy water?  That is out of the question!  No matter how much the kilowatt/hour rate is, that is unthinkable.  Another thing that I could not live without is my internet connection.  My laptop wakes up when I wake up and goes to sleep when I go to sleep.  My internet connection is my sort of lifeline to my virtual world.  Do you know that I own a farm in Farmville and has amassed 15M in FV money?  Lol.

2.  Look for alternatives.  Since it is obvious that I can't compromise the number of consumption hours, I have to be creative in thinking of ways to pay less while consuming more.  My husband said that we have to replace our present appliances with those of newer and more efficient technology, like the inverter technology.  Airconditioners, refrigerators are the first appliances to be available in inverter technology.  With this technology, usage is maximized while saving a lot of energy and of course, money.

There is an alternative source of power that most of us are not aware are using it already for the longest time.  It comes free and is very abundant in tropical countries.  I am talking about solar energy.  What is solar energy?  Solar energy is simply energy from the sun.  For centuries, people have been using solar energy in such simple tasks as drying of clothes, food and what have you.


What can a private individual do to maximize solar energy?  For residences and business establishments,  it entails the installation of solar panels on the roof to catch the sun's rays.  The solar panels convert the sun's rays into electricity that could be used to empower airconditioners, refrigerators, heaters and other appliances.  The number of solar panels to be installed would depend on the electrical consumption.    A higher consumption would require more solar panels.  

Solar panels on the roof of the house.http://www.hotpundit.com/wp-content/uploads/2011/01/solar-energy-nj-tax-credits.jpg
Although solar energy has a lot of advantages like it saves money as it is free; it is environment friendly as it is clean, sustainable and renewable; and is easy to maintain, the main drawback for its use is the big initial cost in installing the solar energy system.  The recovery period for the initial investment will depend on the amount of  electricity used.  The bigger consumption, the shorter time to recover the initial investment.  Once this has been recovered, solar energy is practically free.  

Solar energy is one area that the Philippine government should invest in as the country enjoys many months of sunny weather.  It should encourage the use of solar energy by making financing for this undertaking available to everyone.  If banks can lend money for a house and lot in the form of real estate financing, what is stopping them from providing financing for the installation of solar panels?  What a waste if we don't do anything to store this energy that is God-given, abundant and free at that.  





Tuesday, August 23, 2011

Growing Mangoes Naturally

Everyday man is looking for ways to make life easier for the world.  At this time of my life, I have my fill of instant food like coffee, noodles, juice.   Chicken, eggs, shrimp, fish, vegetables are being mass produced to feed the world population which has been growing by leaps and bounds.  Advances in technology and science are mind-boggling.  The earth is becoming smaller with the advent of the internet and lately science is saying that man can live up to 150 years old!

Though contributions of technology and industrialization today cannot be discounted allowing several things to be done at the same time, I still long for food cooked the old way, food grown the natural way.

The Philippine's pride, the carabao mango with scientific name mangifera indica was not spared from being grown commercially.  When before mangoes can only be enjoyed during the summer months from March to May, now locally grown mangoes can be had anytime of the year.  Of course, they cost more on other months of the year.  They are also at their sweetest during the summer months.


According to Rex Rivera, an agronomist and mango specialist,  growing mangoes using the natural farming system is slowly gaining ground nowadays.  People are beginning to eat healthy and that means naturally grown food.  Mango is one of the cash crops of the Philippines and fetches a high price in the market.  Growing it and making it into a business make sense.  Because it is a centennial tree, one is expected to earn income from farming it for a long time.  At its peak at 45-50 years old, a tree can yield  2,000 kilos of mangoes.  While traditional crops like rice, sugar, rice and corn will earn P15,000 to P60,000 per hectare per year, a hectare planted to 50 trees of mangoes can yield P600,000 to the farmer.  

Mango has many uses.  Aside from being a popular dessert, the unripe or green mango is a favorite appetizer or juice.  I prefer eating it fresh, either yellow or green but the dried form is a favorite pasalubong item.




My dear readers, let's start planting trees and earn a lot at the same time.

Friday, August 5, 2011

Raising Free Range Chicken


Eating healthy has been gaining ground for the past five years or so in the Philippines.  Organically produced veggies are one of the popular items in weekend markets at the Lung Center of the Philippines in Quezon City and Salcedo Market in Makati City.  Garden enthusiasts are planting herbs like oregano, basil, rosemary, mint in their backyard or pocket gardens so there will always be fresh produce when cooking that favorite pasta recipe or soup.  Suddenly vegan cafes and eateries are sprouting in restaurant rows and malls.  Eating healthy has become the craze as people became aware of the side effects of unhealthy food.  By unhealthy food, I am referring to vegetables, poultry and meat that have been grown using pesticides, fertilizers, growth hormones, antibiotics.

For this article, I will be tackling free range chicken farming as a viable source of income.  I got a lot of help from Dr. Erwin Cruz, a veterinarian who is in the business of growing and selling free range day old chicks.  Free range farming is the growing of chicken which allows the chickens to roam freely and are fed chemical-free feeds.  Antibiotics and growth hormones are not used.  Instead, banana leaves, bamboo leaves, brown rice and other natural supplements are given to help them combat diseases.  The meat of chicken grown using this farming method is the preferred meat source of children with autism, the elderly, persons with cancer and other diseases that are diet sensitive.



As per Dr. Erwin Cruz, free range chicken farming started in 1997 here in the Philippines.  It started as a hobby for some and eventually progressed into a full commercial endeavor.  Free range poultry meat is steadily gaining a following because of its more natural delicious taste and health benefits.  Since chicken growers still prefer to grow the commercial chicken found in supermarkets and markets, it is best to go into business now and be ahead of the pack.

The heart of free range chicken farming is choosing the right quality of day old chicks.  This means that the chicks should come from parents that were raised the same way, that is, free range too.  For those about to venture into business, it is best to follow these tips:

1.  Start small to minimize losses.  Fifty to one hundred heads would be ideal for a start up.

2.  Have a ready market.  Since free range chickens cost double than the ordinary dressed chicken, it is best to know the market.

3.  Have a veterinarian who is well-versed in free range chicken farming for proper guidance.

If commercial chickens are harvested between 28 to 32 days,  the ideal harvest age for free range ones is 60 days.  At that age, the chicken weighs 1.6 kilos and 1.1 kilos when dressed.  If commercial chicken growers can have eight to nine cycles per year, free range farmers can only have four to five a year.  Chicks up to age 21 days are housed in brooding houses where they are given feeds, herbal supplements and artificial light.  On day 22 up to harvest time of 60 days, they are transferred to the ranging area enclosed by a fishnet to graze.  Even if they are allowed to graze, feeds are still given for a high meat recovery and quality.

How much capital is needed to start with one hundred heads?  According to Dr. Cruz, the initial cash outlay is P20,965 broken down as follows:

Housing and equipment P8,660

Operating Costs 12,305

The amount does not include the land used for the farm, at least 500 square meters in size.

On the revenue side, the chicken can be sold at P130 per kilo at farm gate prices.  To illustrate:
     
       100 heads x 97% livability = 97 heads x 1.6 kilos live weight = 155.20 kilos

       155.20 kilos x P130/kilo = P20,175

Housing and equipment costs of P8,660 will be amortized within one year which is equivalent to 5 cycles or grows.

       P8,660/5 = P1,732 amortization per cycle.  This amount will be added to the operating costs of P12,305:

       P1,732 + P12,305 = P14,037 representing production cost per cycle for the first year.

To get the net income per cycle for the first year, production cost of P14,037 is deducted from the total revenue of P20,175.

       P20,175 - P14,047 = P6,138.  The net income becomes bigger as the number of chicks increase and after paying the costs for housing and equipment starting on the second year.