AUSTRALIAN AWARDS FELLOWSHIP

PROGRAMME-2015BUSINESS PLAN DEVELOPMENT

S.Thanigaseelan[SEELAN], Assistant Director, NHRDC, Ministry Of Policy Planning and Economic

Affairs

  Name of the business: Kapilan Poultry farm Type of the business: Retailer and Wholesaler Targeted customers: officers, business people (small shop

owners) and farmers Owners of the business & qualifications and business

experiences: Kapilan- Bachelors of Arts and have business knowledge

Number of staff: 02 with other 2 family members Required start-up capital (Total estimation)Rs(7.5mn):

7500$ Sources of start-up capital: Shares of owners, relatives and loan Competitors: Kaluthavalai and Kaluvanchikudy public markets

Executive Summary of Project:

Poultry industry in Sri Lanka has shown a phenomenal

growth over the past three decades or so. As a result, poultry products have become essential food items in Sri Lankan menus. Demand of chicken meat and eggs have been met by local producers by now.

Total availability 73 % production by locally. So, the chicken meat production is in upright trend and per capita availability will be 7.98 kg/year in 2014. (http://www.daph.gov.lk/web/images/content_image/news_bulletins/poultry_sector_forecast_2014.pdf)

Background

Year No. parent day old chicks2012 1,185,3522013 1,064,601 11

%

Location

About 70% of the contribution to livestock sub-sector in Kaluwanchikudy comes from chicken meat and eggs.(Statistical hand book 2013-MSEP)

• Vanniyar street ,Kaluthavalai, Batticaloa.

• No harm to surrounding environment

• No dangerous pollutants substances. However other expected wastes

• Efficiently disposed once a week with support of local government authority.

Low financial capacity

Lack of new skills

Lack of managerial skills

Problems Sri Lanka Millennium Development Goals Country Report 2014

To commence commercial poultry farm To Supply 75% rural market with competitive

prices; To create sustainable income of my family

Primary Objectives

Strength OpportunityHe is traditional poultry farm owner He is well known person in village and has buyer informationRelevant Skills in the businessparticipation of family members in productionMarketing knowledgeDay-to-day management is easier.Scientific management practices like breeding, feeding, medication, culling etc. can be applied easily and accuratelywhole year production capabilityavailability of cheap land to be developed into farms 

Price of vegetable and fishes are expensiveHigher demand for chicken among households Minimum land is required for farming.Farms located near market area.cheap labor Veterinarians in the area Insurance support for farmerFree instruction of veterinary departmentLess capital investment

Weakness Threat Lack of financial capacity & high production costs lack of skillful workers The scientific management practices can not be adopted.

 

flood days lack of adequate infrastructures viruses which come and infect the farm Unstable of cost of production fluctuations of poultry-meat price Importance of chicken high death rate farmers having multiple jobs Accessibility of inputsSubstitute available

SWOT Analysis

This business plan is intended to deliver chicken in the target

market area in Kaluthavalai, Thettativu and Kaluwanchikudy of MSEP divisional secretariat areas in Batticaloa district.

Mostly the target customers are officers, business people (small shop owners) and farmers. Based on the observation I have identified the average need of the surrounding community. As other products didn’t full fill the market demand, I chose to do the sales of chicken.

Based on the average requirement of chicken is 50Kgs per day in my village.

I have planned to produce 30Kgs rest of other will be covered by local markets.

Market Opportunity

Focus the traditional chicken producers who supply meat to the various class of customers.

Target groups would be the high end middle class families for the best possible chicken

The availability of fishes and vegetable are very rare as well these are expensive.

MARKET ANALYSIS & POTENTIAL FOR POULTRY FARMING

Seasonal chicken salesmen in local market Kaluwanchikudy Public market (Its away from

3km) Existing three traditional chicken farming

Key local competitors

Total Estimated cost -750,000 Existing amount- 260,000 Additional funding requested: 490,000

Financial Summary statement

Cash Flow

Items Jan Feb Apr Jun Aug Oct Dec Total

Opening Balance 38000 171000 160200 167200 155700 142400 Cash Incoming

Sale 630000 486000 756000 720000 486000 720000 630000Bank loan 500000 Owners investment 450000

Total Cash Incoming 950000 668000 657000 916200 887200 641700 862400 4279500Cash outgoing

Utilities (electricity, water) 5000 5500 4000 6770 4000 5600 5700 35800 Telephone 2000 1500 1800 2000 2500 2700 2050 14550Labour cost 20000 20000 20000 20000 20000 20000 20000 140000

Broiler Chicken & Pellet 120000 120000 120000 125000 130000 120000 120000 125000Maintenance Cost 5000 5000 5000 5000 5000 5000 5000 35000

Feeds Cost 150000 150000 225000 300000 150000 150000 150000 150000Protein supplement 10000 10000 10000 10000 10000 10000 10000 70000Investment on building 600000

Total Outgoing 912000 312000 385800 468770 321500 313300 312750 3235350

Bank Balance closing 38000 356000 271200 447430 565700 328400 549650

Kapilan poultry farmBalance Sheet Forecasting

  LKR 000’  Year 1 Year 2 Year 3Assets      Non-Current Assets      Property, Plant & Equipment (net) 540,000.00 480,000.00 420,000.00       Current Assets      Inventory 120,000.00 132,000.00 138,000.00Other Current Assets 560,000.00 506,400.00 499,000.00Cash & Bank Balance 549,650.00 580,000.00 550,000.00Total Current Assets 1,229,650.00 1,218,400.00 1,187,000.00       Total Assets 1,769,650.00 1,698,400.00 1,607,000.00       Equity & Liabilities      Equity 450,000.00 450,000.00 450,000.00Profit/Loss 506,900.00 540,200.00 572,000.00       Long-term Liabilities 500,000.00 400,000.00 300,000.00       Current Liabilities      Accounts Payable 312,750.00 308,200.00 285,000.00Other Current Liabilities - - -Subtotal Current Liabilities 312,750.00 308,200.00 285,000.00       Total Equity & Liabilities 1,769,650.00 1,698,400.00 1,607,000.00

Blanch Sheet

Ownership- who will be the owner

The farm would be owned by me. It would be own enterprise with 100 % of his family share

The farm would be owned by his family. It would be a individual enterprise with his owners holding 100 % of the share.

  Staff-Will you be recruiting staff?

he needs two un skills labour for the monthly payment. I can facilitate them for their EPF, ETF coverage based on their salary level. And I will also insure them to protect my labour force incase if any incident happen.

How will you recruit? The recruitment will be made based on the number of workers required,

skills and experience needed, requested responsibility and their reasonable salary.

  How will you pay wages?

Monthly base with ETF and EPF facilities.

Business Structure

Registered your name

I planned to registered my poultry farm under the Divisional secretariat to access the facility of government, incentives as well free services and promotion. Once we register the new registered number will be provided which can be display in the name board and our bulls. Once I registered then I will be able to access the loan facilities from finance institutions.

  Apply for permit

The Project will be approved from State Environment & Pollution Department

  Awareness of any specific laws relevant to your industry

State regulations on insurance and the practice of medicine. The following regulations apply to the employees: clean environment The business will need the licenses and permits: Shine board, vehicle

license Follow an other responsibilities of the business:

Legal Considerations

Insurance1. Public liability:

Pay compensation for accidental damage to the property & employee

2. Asset protection, revenue protection: Protect unsure small business while loses are happening.This type of insurance is recommended for every business that manufactures a product

What it coversThe company shall indemnify the Insured against all sums which the Insured shall become liable at law for damages and claimant’s costs and expenses in respect of:•Accidental bodily injury to any person not being a member of the Insured’s household or any person in the service of the Insured.•Accidental damage to property not belonging to or in the custody or control of the Insured.•Any legal expenses incurred by the Insured in defending legal proceedings with the Company’s written consent.

Location: This is located in Kaluthawalai, Batticaloa The chicken farm plan to built in his own land Financial: The financial source will be use from his

family and loan from bank Productivity: The product will be targeted 60%

customer from his village HR: The paid labour use for maintaining and selling

the products. They will be trained to promote the skills on this

farm

Operational Factors

Category Risk Mitigation StatusNatural disaster flood days -Ask GN help

- Keep average product- Insure the farm

Followed mitigation plan

Infrastructure Lack of sufficient infrastructure

-Request public road from local authority.-Inform district SM Industrial department

Followed mitigation plan

Disease viruses which come and infect the farm

- Register the Small business- Keep record of inspection of veterinary Doctor- Follow the instruction of Doctor

Followed mitigation plan

High Competition poultry-meat import from other provinces

- Keep quality and stable price- Improve the services to distribute

at the door- Keep up clean production

Followed mitigation plan

Service accessibility Lack of veterinary services, Insurance and business advisory

- Register the farm under the DS- Approach Insurance company- Approach Entrepreneur development

Officers

Followed mitigation plan

RISK MANAGEMENT PLAN

Thank you

No. The start-up expenses Amount

1 Expenses for hiring advisors and technical experts 10,000.2 Marketing promotion expenses for the brand imaging 5,5003 Insurance (general liability, workers' compensation and chicken

casualty) coverage at a total premium18,000

4 Other start-up expenses including transportation 2,0005 Stationeries and Office supplies 1,000  Total 36,500  The required start-up assets  1 Operating capital in the total amount(which includes salary of one

unskilled labors(10,000x12) operation cost 10,00020,000

Cash in hand (Family Capital) 260,0002 Bank loan 4,90,0003 Start-up inventory

Broiler chicks (1000 heads @ Rs 100 per head) – Rs 100,000Pellet balls (30 quintals @ Rs 3,000 per quintal) – Rs 90,000

1,90,000

4 Protein supplements, vitamins and antibiotics 10,000  Equipment and machineries  1 Nets, baskets, buckets, tillers and other equipment 20,0002 Heating, lighting system and pellet machine 50,0003 Farm house building 600,0004 Feeds cost 1,50,000  Total of Assets and Equipment 19,00,000  Total Cost 19,36,500

Startup Cost