OPEX — Operations
Daily and monthly running costs across all spokes. Every peso out tracked, categorised, and reviewed. Know your burn rate.
On this page
Overview — OPEX vs CAPEX
OPEX (Operating Expenditure) is every recurring cost required to keep the farm running day to day — labour, feed, fuel, utilities, consumables, and professional services. If the farm stops paying it, the farm stops working.
CAPEX (Capital Expenditure) is one-off spending on builds, infrastructure, and equipment — things that create long-term value. CAPEX is tracked separately in the Construction and CAPEX Equipment tabs on Finance.
Spoke-Level Running Costs
Monthly operating costs broken down by spoke and category. Figures sourced from Costing 2026, Feeds Costing, and Year 1 Ground Plan.
| Spoke | Labour | Feed / Inputs | Fuel | Utilities | Consumables | Monthly Target (₱) |
|---|---|---|---|---|---|---|
| Livestock | ₱24,000 | ₱6,000 | ₱1,500 | ₱1,000 | ₱500 | ₱33,000 |
| Poultry | ₱16,000 | ₱68,700 | ₱500 | ₱500 | ₱2,500 | ₱88,200 |
| Feeds & Supply | ₱10,000 | ₱20,000 | ₱3,000 | ₱1,000 | ₱500 | ₱34,500 |
| Merkado | ₱8,000 | ₱5,000 | ₱500 | ₱2,000 | ₱1,500 | ₱17,000 |
| Katayan | ₱10,000 | ₱3,000 | ₱500 | ₱3,000 | ₱2,000 | ₱18,500 |
| Panaderia | ₱8,000 | ₱8,000 | ₱500 | ₱2,500 | ₱1,000 | ₱20,000 |
| Alijandro's Kambingan | ₱16,000 | ₱15,000 | ₱500 | ₱3,500 | ₱2,000 | ₱37,000 |
| Deliveries | ₱8,000 | — | ₱12,000 | ₱500 | ₱1,500 | ₱22,000 |
| Regen Gardening | ₱14,000 | ₱3,000 | ₱500 | ₱500 | ₱500 | ₱18,500 |
| Marine & Seafood | ₱8,000 | ₱5,000 | ₱2,000 | ₱2,000 | ₱1,500 | ₱18,500 |
| Nursery, Soil & Compost | ₱7,000 | ₱2,000 | ₱500 | ₱500 | ₱500 | ₱10,500 |
| Slow Food & Training | ₱8,000 | ₱3,000 | ₱500 | ₱500 | ₱1,000 | ₱13,000 |
| TOTAL | ₱137,000 | ₱138,700 | ₱22,500 | ₱17,500 | ₱15,000 | ₱330,700 |
Petty Cash System
Each spoke receives a petty cash float of ₱2,000 – ₱5,000 depending on daily spend volume. Petty cash is the front-line expense tool — small, tracked, and controlled.
Rules
- Receipts required for every transaction — no exceptions.
- Replenished weekly on a fixed day.
- Float must be fully reconciled before any refill is issued.
- Discrepancies reported immediately to finance lead.
Petty Cash Allocation
| Spoke | Float Amount (₱) | Replenishment Day | Reconciled By |
|---|---|---|---|
| Livestock | ₱2,000 | Monday | Stock hand |
| Poultry | ₱2,000 | Monday | Egg/broiler lead |
| Feeds & Supply | ₱3,000 | Monday | Feed mill operator |
| Merkado | ₱3,000 | Monday | Merkado lead |
| Katayan | ₱3,000 | Monday | Head butcher |
| Panaderia | ₱2,500 | Monday | Head baker |
| Alijandro's Kambingan | ₱5,000 | Monday | FOH lead |
| Deliveries | ₱3,000 | Monday | Driver / logistics |
| Regen Gardening | ₱2,000 | Monday | Garden lead |
| Marine & Seafood | ₱2,500 | Monday | Seafood lead |
| Nursery, Soil & Compost | ₱2,000 | Monday | Nursery lead |
| Slow Food & Training | ₱2,000 | Monday | Training coordinator |
SOPs
- Spoke lead is custodian of their float.
- All receipts stored in a dated envelope per day.
- End-of-week: count cash, attach receipts, submit reconciliation form.
- Finance lead verifies before releasing next week's float.
- Any shortage over ₱50 triggers a written explanation.
Utilities
Shared utility costs allocated across spokes based on usage or floor area. Bills filed monthly, spikes investigated promptly.
| Utility | Provider | Billing Cycle | Typical Monthly (₱) | Responsible |
|---|---|---|---|---|
| Electricity | CASURECO | Monthly | ₱5,000–8,000 | Finance lead |
| Solar + battery | On-site | Maintenance | ₱500 | Engineering |
| Generator fuel | Diesel | As needed | ₱2,000–4,000 | Finance lead |
| Water (well + pump) | On-site | Monthly | ₱1,000–2,000 | Maintenance |
| Internet | Globe / PLDT | Monthly | ₱1,500–2,500 | Finance lead |
| Phone / Load | Globe / Smart | Monthly | ₱1,000 | Finance lead |
| LPG / Gas | Local supplier | As needed | ₱2,000–4,000 | Kitchen lead |
SOPs
- All bills filed in the finance folder on receipt.
- Any spike over 15% from the previous month is investigated within 48 hours.
- Shared costs allocated to spokes proportionally (by meter reading or agreed split).
- LPG tracked per refill — date, kg, cost, spoke.
Consumables & Supplies
Recurring supplies that are consumed in operations. Procured centrally where possible to capture volume pricing.
| Category | Examples | Typical Monthly (₱) | Procurement |
|---|---|---|---|
| Packaging | Kraft paper, compostable bags, butcher paper, banana leaf | ₱3,000–5,000 | Centralised |
| Ice | Block ice, crushed ice — butcher, seafood, deliveries | ₱2,000–4,000 | Centralised |
| Cleaning supplies | Detergent, sanitiser, mops, cloths | ₱2,000–3,000 | Centralised |
| Office supplies | Paper, pens, receipt books, folders, labels | ₱1,000–1,500 | Finance lead |
| PPE / Safety gear | Gloves, boots, aprons, masks, hairnets | ₱1,500–2,500 | Centralised |
| Egg trays & packaging | Egg trays, cartons — poultry spoke | ₱2,000 | Poultry lead |
SOPs
- Consumables requisitioned through a central request form.
- Bulk purchases reviewed monthly — compare unit cost vs retail.
- Stock levels checked weekly; reorder points set for critical items (ice, packaging).
- PPE replacement tracked per person — issue log maintained.
Professional Services
External professional services retained or called as needed. Costs budgeted annually and tracked monthly.
| Service | Provider | Frequency | Est. Cost (₱) |
|---|---|---|---|
| Accountant | Local (Ragay/Naga) | Monthly | ₱5,000–8,000 |
| Veterinarian | Municipal / Private | Monthly + emergency | ₱2,000–3,500 |
| Legal / Lawyer | Naga City | As needed | ₱3,000–5,000 |
| IT / Tech support | Remote / Local | As needed | ₱1,000–2,000 |
| Pest control | Local service | Quarterly | ₱1,500–2,500 |
SOPs
- All professional engagements approved by owner before commitment.
- Invoices filed and cross-referenced to service delivered.
- Vet visits logged with animal ID, treatment, and outcome.
- Annual review of all retained services — value for money check.
Monthly OPEX Review
Every month, actual OPEX is compared to target — spoke by spoke. Overspends are flagged, explained, and corrected. This is how the farm stays solvent.
Review Checklist
| Step | Task | Owner |
|---|---|---|
| 1 | Collect all spoke expense receipts | Spoke leads |
| 2 | Reconcile petty cash | Finance lead |
| 3 | Compile utility bills | Finance lead |
| 4 | Calculate total OPEX by spoke | Finance lead |
| 5 | Compare to target | Finance lead |
| 6 | Flag overspends > 10% | Finance lead |
| 7 | Report to owner | Finance lead |
| 8 | Adjust targets if needed | Owner |