A BUSINESS PLAN on: Profitable Commercial Poultry Egg ...
Transcript of A BUSINESS PLAN on: Profitable Commercial Poultry Egg ...
A BUSINESS PLAN on: Profitable Commercial Poultry Egg Production
Under A Semi-Automatic Layer Battery Cage
System and Commercial Biogas Plant
By:
Adedare OSUNSANYA
An Agribusiness Value Chain Expert/ICT Consultant
+2347039359066
CONTENTS
EXECUTIVE SUMMARY…………………………………………………………………………………………….3
1. INTRODUCTION TO THE COMPANY…………………………………………………………………….4
2. ORGANIZATION AND MANAGEMENT PLAN…………..………………………………………..…...5
3. BUSINESS AND PRODUCT DESCRIPTION….………………………………………………………....6
4. MARKET ANALYSIS…………………………………………………..……………………………………….17
5. MARKETING PLAN……………………………………………………………………..……………………..18
6. FINANCIAL ANALYSIS………………………………………………………………………………………..20
I. Capital Expenditure
II. Recurrent Expenditure
III. Total Expenditure
IV. Income statement
V. Net Income and Profit
7. S.W.O.T Analysis………………………………………………………………………………………….……..26
I. Strengths
II. Weaknesses
III. Opportunities
IV. Threats
8. CONCLUSION………………………………………………………………………….………………………….27
EXECUTIVE SUMMARY
To be provided in the full plan
1.0 INTRODUCTION OF THE COMPANY
(Name of business) is an exciting new poultry farm to be positioned in (location) in order to
meet a limiteless need for high-quality and sparkling eggs. In addition to the egg production
in the future, the company plans to proceed into broiler production, poultry value addition
and commercial biogas plant.
Vision
To be among the first 5 renowned egg producers in (location) Nigeria by 2023.
Mission Statement
Our mission is to offer healthful first-rate eggs to the general public in each near and faraway
regions of (area).
1.2 Business Objectives
• to boom egg production performance by using 10% a year.
• to preserve income margins at 20-25% through close attention to fees and cost of
production.
• to expand a sustainable industrial egg layer system, surviving off its personal cash go
with the flow.
• to develop an environmentally friendly poultry system.
• to increase a product-primarily based business enterprise whose aim is to exceed
customers’ expectations.
1.3 Value Proposition
We plan to make use of conventional and extra superior technology to provide quality eggs.
• availability of quality eggs meeting the need of a wide variety of class of humans.
• provision of high-quality biogas that is greater environmentally friendly. This can
additionally function a supply of producing strength for the farm and further supply of
earnings.
• provision of satisfactory products and friendly provider.
• excellent customer care services.
• fairest and lowest feasible prices.
2.0 ORGANIZATION AND MANAGEMENT PLAN
1.1 Promoter of the business
The company operates under a sole proprietorship/joint partnership legal structure and is
promoted by (Name) – He has a B.Sc in Food Science and Technology and Master’s Degree in
Business Administration from ………... He has received entrepreneurial awards and not only
has the required experience to run this business but to also hire the right professionals who
will help run the business.
With over 5 years’ experience in Agricultural Industry and numerous exposure to both the
scientific and practical aspect of services, he has been able to master the technical
requirements, financial management, staff recruitment and organization skills among other
things necessary to give the industry good commendation from our clients. His managerial
skill has also helped in putting together a workforce for over 5 years, which will also help
him to coordinate the team work in most aspect of the company.
He is the CEO/Founder of the company overseeing the day to day activities of the business.
1.2 The management team
The Close Corporation is made up of a strong management team of three committed and
dedicated men. They will share various roles and responsibilities in the identified business
functions such as marketing, human resources, operations, finance and many more. The
three members will represent the ownership of the project but specific management and
operational functions will be given to each member. One of the three members will be given
the responsibility of the overall management of the project and will report to the other
members who will act like a board. We will bring to the business:
Educational skill and practical experience in egg production and Poultry farming
Capacity to consistently provide outstanding service.
Quality processed product and good understanding of the market trend.
1.3 Key Management Staff
Our staff brings operational, marketing and promotional skills to the business.
1.4 Record control process
An inventory management software program and accounting monitoring software (along
with wave) may be made use of. These are primarily computer based systems for tracking
stock ranges, orders, income, charges, invoices and deliveries. The subsequent is the
document/inventory manipulate manner a good way to been carried out;
• ensuring all products are displayed in the proper quantity.
• recognizing whilst a purchaser has offered a product or request for a service.
• automatically signaling while extra products want to be displayed
• automatically reordering stock at the ideal time from the raw materials provider.
1.5 Record keeping documents
Books to be kept are;
Financial/sales records: To determine how much money comes into and leaves the
business over a month.
Operation records: To ensure that quality assurance are in place and operating
satisfactorily. Also, to know the amount and type of consumables used on daily basis.
Employment records: Formal documentation of all proceeding related to our
employees.
Insurance records: For insurance policy purpose.
Safety records: For occupational health and safety assessments.
3.0 BUSINESS AND PRODUCT DESCRIPTION
3.1 Issues Of The Nigerian Poultry Industry
The Poultry industry in Nigeria has had it shares of Ups and downs the highest point
from1967 to Seventies i.e. The oil boom duration whilst the poultry population attained
about 110million in 1975 (federal office of records annual summary of statistics 1981)
however in 1978/79 and especially in the 1980’s the industry experienced a down turn. At
present the industry is working at approximately 17-30% potential of its 1975 height.
These days, Nigeria is rarely meeting her poultry call for in chicken meat and eggs. Seventy
percent (70%) of our fed on poultry merchandise in particular meat, are smuggled product.
The call for geared up to consume eggs on my own outweighs the demand but, international
locations like Niger, chad and northern Cameroon basically depend upon our little supply.
Big Restaurants such as KFC, Sweet Sensation and Mr. Biggs compete for the available little
supply, thereby, hindering the introduction of some recipes because of non-availability of
poultry meat. Essentially, our egg supply can only attempt to meet our edible demand hence,
the industrial need is completely left out. This calls for a tremendous personal participation
inside the Nigerian poultry industry. Additionally, most of the commercial gasoline being
offered around aren't environmentally and economically friendly, thereby, posing a main
hazard on the lives of the populace and their profits.
Hence, this has deemed it suit for us to be among the various company investors to embark
on a 1000 birds capacity semi-automated layer battery cage system and commercial
biogas plant to be able to produce at least 20,000kg of biogas monthly in (location).
3.2 Location And Site
• This will be located at (area), in an effort to be built on a permanently acquired/leased
land that is suitable for this purpose. (region) weather and terrain is appropriate for poultry
farming and at massive for agricultural functions. Extra so, this location is an authorized
agricultural land mass through the government a good way to decorate the sustainability of
this agricultural industry as land documents including deed of possession and certificate of
possession can be immediately authenticated via the relevant government business
industry.
• this farm proposed area enjoys direct link to different nation capital axis via an
available and properly tarred road that makes it clean for purchasers of fowl products to
reach without a lot ado.
• the proposed site of the poultry farm is a government permitted agricultural land
with deliberate security network that also makes it’s a secure haven for industry coupled
with hospitable nature of the population of this place.
• considering the agrarian nature of the proposed site, labour is with no trouble to be
had and less expensive.
• sustainability of this poultry farm is greatly more suitable because agro-related
activities is dominant at the proposed location. This consists of huge expanse of arable land
that could be leased in destiny to grow maize that is a main element for poultry feed
production. Subsequently, making the mission particularly worthwhile as price might be
decreased as a whole lot as twenty percentage via direct milling of feed.
• delivered to the above listed suitability factors of the proposed poultry site is the
privilege offered for growth in/and other agribusinesses and coordinated help from other
farms around.
• the poultry site will be planned from the outset with the infrastructures properly
placed and spaced out.
BATTERY CAGE SYSTEM
Here birds are kept throughout their productive life time in cages. As such, they are strictly
commendable for use by commercial egg producers. Caged birds are capital intensive but the
merits include; ease of management, cleaner eggs, safety from breakages, minimal feed
wastage, reduced water contamination and maximized space.
DEEP LITTER SYSTEM
Starters with restrained assets could start with deep litter system. It's miles cheap, litter
materials are effectively available. The primary requirements are conducive housing and
extra excessive management of the water, feed and litters. The roof in all instances should be
heat repealing, crafted from asbestos, thatch etc. Vent, created to let loose heat, wall have to
be much less than 2 feet high, 'curtain' from sacks or tarpaulin supplied to save you entrance
of rain water to prevent incidences of coccidiosis and different enteric diseases. Right here
poultry are constrained in a house with floor space of 8 to ten birds/m2 to make certain loose
motion. The floor should be blanketed with a 5cm to 10cm deep muddle of grain husks
(maize or rice), straw, wooden shavings or a similarly absorbent (but non-poisonous)
substances. Wood shavings are relatively endorsed for use when you consider that birds can
not eat them. It additionally enables to prevent harm to the birds’ legs because of slippery
surfaces. Commonly old litter is renewed while alternative stock arrives. It's far beneficial no
longer to re-use antique litter. After old litter has been eliminated out of the residence, the
ground ought to be wiped clean and disinfected.
It is advisable that starters should minimise the price of poultry house production and utilise
neighborhood substances as gadget so that the restricted sources might be channel into
efficient running fee consisting of DOC or POL and feed.
Starters could start with POL, these are birds in their fourteen to twenty weeks of Age,
(birds often start dropping their first egg from 22weeks to 24weeks of age). Advantage of
acquiring Point Of Lay birds is the reduced risk in rearing birds from chicks. Prices of POL
ranges: 17weeks (N1200) and 19 weeks (N1400).
We have 2 types of poultry houses: Brooder/Rearing houses and laying houses
BROODER/REARING HOUSES:
The house is constructed with a solid base wall of about 3 – 4 layer of concrete block coaches
of 6 inches while the sides are open-sided covered with ¼ inch wire mesh with controllable
curtains and the height is about 3 – 4m.
TABLE 1: Floor/Space Requirement For Growing Birds.
Age in weeks Square feet per bird Square meter per bird
0-6 0.13-0.54 0.0123-0.05
6-12 0.54-0.86 0.05-0.08
Point of lay 1.08-3.2 0.05-1.10
Thus, number of birds /meter square 9-13
Note that while making provision for floor space for brooder house, the final space
requirement per bird must be the size of the house.
BATTERY CAGES:
There are two type of layer cages; automatic and manual cages for this purpose we will
consider the manual cages.
These cages come in two types; 2 tiers and 3 tiers, these cages come in different sizes
containing 76 – 144 birds/unit respectively. Most cages measure 7.5ft by 13ft and usually
about 7ft high. We are making use of a 3 tiers system with 96 bird capacity as shown below.
GARTECH CAGES: These are the latest trend in cage technology, it can be used as a semi-
automated or full automated system. Its dimensions are, length 7ft, breath 8ft 6”, and height
5ft 8”, 120 birds capacity per unit.
Picture 1: Gartech battery cage system Source: Animal care
3.4 Feed And Feeding Requirements
Nutritional values of the birds vary from day old to their laying period. The feeding pattern
is therefore based on the age of the bird.
From 0 to 2 Weeks - broiler starter
2 to 8 Weeks - chick mash (change feed to grower mash when birds are 680gram of weight.)
8 to 16 Weeks - Growers mash (when birds are 1505grams of weight)
16 to 80 Weeks - Layer Mash (start this when birds are 10% production in lay.)
It have to be stated that change from chicks mash to growers mash is based totally on the
weight on the time, that is among 610 – 680gms whilst the transfer from growers mash to
layers mash is satisfactory while the birds have attained 10% lay, in both cases this
modification is accomplished gradually with a sluggish mixing of both styles of feed. The
later alternate also can be accomplished primarily based on the weight of the birds which
ought to be among 1.7kg – 1.72kg.
Broiler starter is preferably while in comparison to the layer starter because of its excessive
protein content which is very important for growth of the chicks.
Attendants must usually rub the feed and offer water ad-libitum. They need to even have a
everyday feeding time, higher three times every day. I.E.
Dry season: 50:10:40 feeding ratio must be adhered to. The time frame should be between
6.00a.M-7.00a.M, 12noon-1.00pm, and four.00pm-five.00pm day by day.
Also make sure that the birds have cool smooth water, good enough air flow and decrease
the energy level of the layer mash.
Wet seasons: 50:25:25 feeding ratio need to be adhered to between the hours of 7.00-
7.30a.M, 12.00noon-1.00p.M, and four.30p.M.Every day. The power degree of the layer mash
need to be elevated.
Feeding might be decreased to two times every day because of high price of feed presently.
Time for gathering eggs have to also be constant and normal either once or twice each day,
(better twice).
3.5 Management Practices
MANAGEMENT OF PULLETS FROM 0 – LAYING PERIOD
CHICKS STAGES:
Arrival of the day old chicks to the farm is awaited with the practise of the brooder pen, that
is disinfected, washed dried and shavings located at the floor (light shavings). The drinker
and feeder trays are also washed and disinfected in readiness for the arrival. The heating
device (kerosene lantern, electric bulbs, charcoal or gasoline heaters) are organized and that
is put on, a day to the advent of the birds, temperature is kept at 320c (see brooding
temperature in table four under) to make sure that all system are heat. A dip need to be
located at the entrance of the poultry where attendants disinfect their legs before coming
into the pen.
TABLE : 4 Recommended Brooding Temperature
PERIOD OF BROODING TEMPERATURE
(WKS) (0C) (0F)
1 32-35 90-95
2 29-32 84-90
3 26-39 70-84
4-5 21-26 70-80
6.0. FINANCIAL ANALYSIS
This plan is designed for the rearing of 1000 layer birds from a day old to end of laying and
the capacity will be increased to 5000 birds in five years’ time. It is worthy to note that the
prices used in this study are current prices as at April, 2017 and are subject to change
without prior notice. However, feed prices are presently high due to the high cost of energy
inputs, it accounts for between 70-75% of total cost of production.
INCOME STATEMENT (Profit And Loss Analysis):
1000 birds will consume 84 bags of layer mash/month
Credit:
Income/month = 882,400 naira
Debit:
Cost of feeding per month at 28 weeks upward = 294,000 naira
Cost of salary per month = 70,000 naira
Miscellaneous = 10,000 naira
Total monthly expenses = 374,000 naira
Depreciation / month = 197,500 naira (5% of fixed asset monthly - this amount should be saved every month for
The next 10 years or more for replacement of equipment)
Thus total monthly debit = 400,905 naira
Profit = monthly income – monthly debit
882,400 – 571,500 = 310,900 naira
Therefore, every month from 32 weeks, a profit of 310,900 naira is expected.
This will also increase in geometric progression as the farm increase in capacity of birds.
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