How to earn a million in a month's time

THE HANDS of your favorite suking magkakarne in the wet market may contain more than what you can actually see. The same hands that handle the meats you prepare for your family can contain other things --- like bacteria.
This is according to the Bureau of Animal Industry (BAI) that regularly conducts studies of wet markets. The same study revealed that the ingredients used by meat vendors to color tocino and longganiza are the same chemicals used to dye cloth.

Characterized by improper handling, uncontrolled use of ingredients and spices and insufficient supply of meat for local consumption, the meat industry in the Philippines is still in its infancy, experts say.

For someone with an enterprising mind, this situation presents a profitable opportunity to establish meat shops that will supply good meat to processors, restaurants, hotels and households -- especially at a time when consumers are switching from wet markets to meat shops.

"Nagiging edukado na ang mga tao ngayon, so the trend is to switch from the wet market to the meatshop," says Lourdes Rivera, a nutritionist by profession and Project Manager of BAI's Animal Products Development Center. "Dati, gusto gumagalaw pa ang karne. Ngayon, ang gusto, fresh chilled and properly cut."

BAI qualifies a meatshop as a specialty store that fabricates meat cuts from wholesome carcasses or wholesale market cuts. It should sell meat under chilled or frozen conditions and should meet the specifications as prescribed by existing meat standards. It could be within a supermarket (concessionaire) or a store by itself (stand-alone shop). Technical knowledge, skills, capital and entrepreneurial ability of the business operator must come together.

Rivera stresses that technical knowledge and skills is an indispensable tool for the business. Abroad, a butcher is a graduate of a four-year butchery course. There is a proper way of cutting and there are international standards to follow. "Pag walang training ang butcher," Rivera warns, "at ang alam lang niya ay traditional cutting, kahit saan tatamaan iyan. Ang baboy bago patayin ay may oras na pinapahinga mo, may oras na gugutumin mo, may point kung saan sasaksakin, at may technique sa pagpapa-relax dito for proper bleeding. Without knowledge of these, pangit ang karne mo. Walang bibili sa iyo."

Benjie Bundalian of Lisa' MeatShop also agrees that expertise and skills are a big plus to the business. "I believe we have the edge dahil sa quality and hygienic handling ng meats namin from the feedlot to the counter." All of their branches boast of sophisticated gadgets and a triple-A accredited slaughterhouse which makes sure clients get only high grade meat.

And this is what their shop is really known for. Barely a year after its operation, Lisa's grosses as much as PhP1M-4M a month in just one outlet (they have six branches: two in General Santos City and four in Metro Manila).

For a beginner, this may seem impossible. Rivera, instead, estimates the return of investment at 23% within a month's time, provided, she says, "that you will be selling at least three hogs and 50 pieces of chicken a month." An additional cow complete with its internal organs would mean an extra P15,000 income."

Those who are taken aback by the enormous profits of the meat shop should also consider that this is a capital-intensive business. According to Rivera, a building (at least 32 square meters) is a must. This would cost about P3,500/sqm. One may also opt to repair an old building which would cost around P20,000 to P25,000. The equipment which includes the grinder, slicer, stainless steel table and other utensils adds another P50,000-P60,000. Bundalian says the capital could even go as far as P500,000, and this is only a simple meatshop without airconditioning.

"Ang business mo magsu-survive kung yung market mo is already identified," says Rivera. "Kanino mo dadalhin ang ulo? E, di sa tindera ng lugaw, tokwa't baboy; ang paa, sa Malabon, kung saan may nagtitinda ng special crispy pata."

The kind of lifestyle should also be taken into consideration. In the case of Lisa's Meat Shop, they also deliver and do not only rely on walk-in customers. Leaflets or fliers are also effective tools in marketing.

Meatshop owners should take a cue that today's consumers put great value on the food they buy, as Bundalian relates his experience: "Even though you're not branded, as long as you have that quality and product presentation, pwede kang lumaban." And the market is yet to be saturated. "Yung consumption ng meat natin dito hindi nami-meet ng local suppliers," Bundalian explains.

The problem, he says, stems from the fact that few people have the technical skills. Today, however, agencies like the Animal Product Development Center at BAI and the Technology Livelihood Resource Center (TLRC) give trainings on proper cutting, handling and selling of meat. Hygienic standards should be maintained. "Kung mag-iikot ka sa mga slaughterhouses sa Metro Manila, mabibilang lang ang mga sumusunod sa mga standards ng kalinisan," he observes.

The business is difficult, according to Bundalian. It would take time and patience, and even experience is not enough. "fPag natutuhan mo na ang technical skills, you'll be sure na ang dami palang dapat malaman." *

Rochelle has been working in the field of publicity, advertising and corporate publications for ten years now. When office work is light, she finds time to research about business opportunities that abound in the Philippines. You may email the author at trade@philippinestoday.net.

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