Professional Documents
Culture Documents
BROILER HATCHERY
Production capacity 5000 chicks per week
BROILER FARM
3000- Birds (per week)
THIS PAPER IS WRITTEN FOR ANYONE WHO CONCERN TO MAKE A PROFIT FROM POULTRY INDUSTRY.
INTRODUCTION
Sri Lanka is a moderately populated country having predominantly agricultural economy. Almost every part of our country is suitable for poultry farming. During the past few decades poultry industry have gained enormous potential in Sri Lanka. The Government of Sri Lanka has been giving thrust for the development of poultry industry. Development of poultry industries may further be accelerated, if improved varieties of layers/broilers are made available to the poultry farmers which could ensure fast growth, maximum feed to meat/egg conversion and low mortality among the poultry birds. Therefore, it is essential that hatcheries should set up. In the modern nomenclature of poultry industry, the term hatchery covers the sector which is engaged in production and supply of one-day old chicks by artificial incubation. A hatchery can be a part of a breeding farm or it can be a franchiser or sub-franchiser for producing parent and dayold chicks of broilers or layers. The term hatchery can be extended to an organization which does not maintain any breed stock (mating stocks) but only procures hatching eggs for producing (supplying) day old chicks. MARKET POTENTIAL Changes in life style and food habits of consumers, improvement in standards of living etc. have resulted into increase in per capita consumption of egg and poultry meats but per capita consumption of these commodities in our country is still far below that of developed countries showing enormous potential/scope for poultry development. Increasing number of poultry farms in different areas has emphasized that hatcheries should be set up in potential areas. In Sri Lanka there are few number of large commercial hatcheries are available, however unable to meet the present demand of dayold chicks of broilers and layers. It said that these hatcheries set up so far are not adequate to meet the increased demand of one day old chicks of broilers or layer poultry birds which show good scope for hatcheries.
Executive Summery
For The Pre operating time and for the period of one year after start the Production process
Total Project Cost Loan Total Assests Woking Capital Need Annual Sales Pre-Operating Cost Annual Direct Materials Cost Annual Direct Labour Cost Annual Production Overhead Cost Annual Marketing Cost Annual Management & Administration Cost Annual Gross Profit Annual Depreciation Annual Net Profit Rate of Net profit before tax Rate of Return
: : : : : : : : : : : : : : : :
10,866,858 6,300,000 9,556,000 675,858 14,271,875 635,000 5,763,108 800,400 252,000 18,000 23,000 7,313,648 525,450 4,223,774 39.86% 51.82%
LKR LKR LKR LKR LKR LKR LKR LKR LKR LKR LKR LKR LKR LKR
1. Marketing Plan for broiler hatchery 2. Production Plan for broiler hatchery 3. Organization & Management Plan for broiler hatchery 4. Financial Plan for broiler hatchery
4 7 12 14
1.2. Competitive Analysis of Product If we consider day old chicks demand and supply, the present supply unable to meet the existing demand. How ever due to high demand factor no marketing competition.
>>>>
Present Demand Existing Supply 1.3. Main Customers Customer Existing Poultry Farmers and Farmers Egg buyers, retail shop owners Type of Product New Day Old chicks (Pullets) Disposal buyers Parent buyers for poultry preparation Coconut growers, Farmers and compost Poultry Litter manufacturers 1.4. Total Demand There is a increasing demand for day old chicks and for other products 1.5. Market Share Can capture the part of untouched market share Unfertile Eggs, Under weight or Double York Eggs Disposals meat Culled Birds(Parents)
1.6. Comparisons of Competitors Selling Prices Products Day Old chicks Unfertile Eggs, Under weight or Double York Eggs Disposals Culled Birds(Parents) Poultry Litter 1.7. Sales Forecast Products Current Proposed Annual Unit Annual Annual Unit Price Annual Sales Price Income Sales LKR(Average) Income Quantity LKR LKR Quantity LKR 145,019 97.00 14,066,843.00 20,127 10.00 201,270.00 Our Prices Competitors Prices (L. Rs) 97 (layer) per chick
Our Prices are set 10per egg according to the .50 per 1 kg competitors prices 200 per 1 kg live weight 45 per bag
Day Old chicks Unfertile Eggs, Under weight or Double York Eggs Disposals Total Annual Sales Sales Forecast in Monthly Basis 1.8. Marketing Strategy Feature Present of products Price of products Distribution Measures Promotional Measures
1,881Kg
2.00/Kg
3,762.00 14,271,875.00
Annexure 01
Proposed Quality will be good comparatively Others Price will be comparatively Others According to buyer's requirement Contacting persons and institutions, Contacting large scale poultry farmers,
Annexure 02
Patent Chicks
720 2160
3 batches Layers 2nd 40% All 46 % Laying % 992 6944 Annual 361088 694 Rejected eggs for market per week 3rd 60% 4th 40%
6250
5000
Inside Hatchery
10
2.2. Production fixed Assets Property 1/2 Ac land Boundary wall/barbed wire fencing, etc. Water storage tank Layer/Breeder House/Sheds 4ft2/bird Hatchery-cum-office building + .Store 4000 ft2 Hatchery Unit (Egg Hatcher, Egg setter, Electric egg tester Egg weighing scale (1-100 gram cap.) Misc. items like buckets, trays, baskets etc. Generator (10 KVA) Electric De-beaker Feeder, waterer and brooder Weighing balance Veterinary clinic instruments/equipment Refrigerator Air conditioner Total Value (LKR) 2,000,000.00 80,000.00 30,000.00 1,800,000.00 2,000,000.00 Depreciation % 0% 10% 8,000 10% 3,000 10% 180,000 5% 100,000 3,000,000.00 5% 150,000 20,000.00 20,000.00 300,000.00 15,000.00 60,000.00 25,000.00 10,000.00 60,000.00 80,000.00 9,500,000.00 519,250 10% 2,000 50% 10,000 10% 30,000 20% 3,000 50% 5% 1,250 100% 10,000 10% 6,000 20% 16,000 Annual Depreciation -
11
Store N
Hatchery-cum-office building
Entrance
Monthly Direct Materials Usage 2.5. Annual Direct Labor requirement & Expenses
Description No of Emplo's' Hatchery Manager Operator Skilled worker Unskilled workers Direct Labour Existing Monthly Salary EPF + ETF 15% Total Annual Expenses LKR No of Emplo's'
Annexure 03
Proposed
Monthly Salary (Average)
(Average)
(Average)
1 1 1 2
Annexure 04
12
Annexure 05
13
1 1 1 2
1 2 3 4 5 6 7 8 9 10
Pre-Operating Expenses
Pre-Operating Activity Expenses Amount (LKR)
Preliminary and Pre-operative Expenses like Legal Expenses, Establishment Cost, Travelling, Start up 75000 Expenses, Consultancy Fees, Interest during Construction, Trial Run Expenses etc. Other Fixed Expenses for Purchase of About 720 Nos Day-old Parent Stock chicks and Feeding Charge up to Laying Stage
Commercial production
Project preparation
Sanction of loan
Months
Trial Run
14
Annexure 06
15
Fixed Assets 1/2 Ac land Boundary wall/barbed wire fencing, etc. Water storage tank Layer/Breeder House/Sheds 4ft2/bird Hatchery-cum-office building + .Store 4000 ft2 Hatchery Unit (Egg Hatcher,Egg setter, Electric egg tester Egg weighing scale (1-100 gram cap.) Misc. items like buckets, trays, baskets etc. Generator (10 KVA) Electric Deb-eaker Feeder, waterer and brooder Weighing balance Veterinary clinic instruments/equipment Refrigerator Office equipments/furniture Telephone 01 Air conditioner Fixed Assets Total ( a) 80,000 30,000 1,800,000 2,000,000 3,000,000 20,000 20,000 300,000 15,000 60,000 25,000 10,000 60,000 50,000 6,000 80,000 2,556,000 7,000,000 2,000,000 2,000,000 80,000 30,000 1,800,000 2,000,000 3,000,000 20,000 20,000 300,000 15,000 60,000 25,000 10,000 60,000 50,000 6,000 80,000 9,556,000
Pre Operative Expenses Preliminary and Preoperative Expenses like Legal Expenses, Establishment Cost, Travelling, Start up Expenses, Consultancy Fees, Interest during Construction, Trial Run Expenses etc. 75,000 75,000
16
Expenses for Purchase of About 720 Nos Day-old Parent Stock chicks and Feeding Charge up to Laying Stage Total Pre Operative Expenses ( b ) Working Capital Expenditure Purchase of About 720 Nos Day-old Parent Stock chicks Eggs From parents Chick Box Labour Expenses Electricity Cleaning Telephone charge Stationery Welfare Promotional Expenses Total working Capital Expenditure( c ) Total Project Cost a+b +c Investment Contribution % 0.00% 0.00 %
560,000
560,000
635,000
635,000
360,000
360,000
203,742 21,000 66700.00 20000.00 1000.00 1000.00 83.00 833.00 1500.00 675,858 3,866,858 35.58% 7,000,000 64.42%
203,742 21,000 66700.00 20000.00 1000.00 1000.00 83.00 833.00 1500.00 675,858 10,866,858 100.00%
Working Capital Working Capital calculated for the 1st month after operation.
17
18
19
100
5,631,698 14,129,156
100
39.86%
Rate of Investment
100
5,631,698 10,866,858
100
51.82%
20
Annexure 01
Sales Forecast in Monthly Basis (No of Pkt and Value in LKR)
Products/S ervice Day Old chicks Unit Price Value Unfertile Eggs, Under weight or Double York Eggs Unit Price Value Disposals Unit Price Value Total Value Mont h 01 6,66 8 97.0 0 646, 796 Mont h 02 6,66 8 97.0 0 646, 796 Mont h 03 6,66 8 97.0 0 646, 796 Mont h 04 6,66 8 97.0 0 646, 796 Mont h 05 8,33 5 97.0 0 808, 495 Month 06 13,33 6 97.00 1,293, 592 Month 07 13,33 6 97.00 1,293, 592 Month 08 13,33 6 97.00 1,293, 592 Month 09 13,33 6 97.00 1,293, 592 Month 10 16,66 8 97.00 1,616, 796 Month 11 20,00 0 97.00 1,940, 000 Month 12 20,00 0 97.00 1,940, 000
Annexure 02
Marketing Expenses in Monthly Basis (LKR)
Expenses Item Month 01 1,500 1,500 Mont h 02 1,50 0 1,50 0 Mont h 03 1,50 0 1,50 0 Mont h 04 1,50 0 1,50 0 Mont h 05 1,50 0 1,50 0 Mont h 06 1,50 0 1,50 0 Mont h 07 1,50 0 1,50 0 Mont h 08 1,50 0 1,50 0 Mont h 09 1,50 0 1,50 0 Mont h 10 1,50 0 1,50 0 Mont h 11 1,50 0 1,50 0 Mont h 12 1,50 0 1,50 0
Promotional Expenses
Total
Annexure 03
Monthly Direct Materials Usage
Raw Material Eggs Fro parents Unit Price Expenses Parent stock chicks Month 01 Mont h 02 Mont h 03 Mont h 04 Mont h 05 Mont h 06 Mont h 07 Mont h 08 Mont h 09 Mont h 10 Mont h 11 Mont h 12
9261
22.00 203,74 2 720
926 1
22.00 203,7 42
926 1
22.00 203,7 42
926 1
22.00 203,7 42
115 76
22.00 254,6 72 720
185 22
22.00 407,4 84
185 22
22.00 407,4 84
185 22
22.00 407,4 84
185 22
22.00 407,4 84
231 50
22.00 509,3 00 720
277 78
22.00 611,1 16
277 78
22.00 611,1 16
21
Unit Price Expenses Chick Box Unit Price Expenses Total Expenses
Annexure 04
Monthly Direct Labour Expenses (LKR)
Description Hatchery Manager No of employees' Expenses Operator No of employees' Expenses Skilled worker No of employees' Expenses Unskilled workers No of employees' Expenses Total Expenses Month 01 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0 Mont h 02 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0 Mont h 03 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0 Mont h 04 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0 Mont h 05 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0 Mont h 06 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0 Mont h 07 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0 Mont h 08 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0 Mont h 09 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0 Mont h 10 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0 Mont h 11 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0 Mont h 12 20,00 0 1 23,00 0 12,00 0 1 13,80 0 10,00 0 1 11,50 0 8,000 2 18,40 0 66,70 0
Annexure 05
Monthly Production Overhead Expenses (LKR)
Expenses Item Electricity Cleaning Total Month 01 20,000 1,000 21,000 Mont h 02 20,00 0 1,000 21,00 0 Mont h 03 20,00 0 1,000 21,00 0 Mont h 04 20,00 0 1,000 21,00 0 Mont h 05 20,00 0 1,000 21,00 0 Mont h 06 20,00 0 1,000 21,00 0 Mont h 07 20,00 0 1,000 21,00 0 Mont h 08 20,00 0 1,000 21,00 0 Mont h 09 20,00 0 1,000 21,00 0 Mont h 10 20,00 0 1,000 21,00 0 Mont h 11 20,00 0 1,000 21,00 0 Mont h 12 20,00 0 1,000 21,00 0
22
Annexure 06
Management & Administration Cost (LKR)
Administration Activities Month 01 1,000 83 833 1,917 Mont h 02 1,00 0 83 833 1,91 7 Mont h 03 1,00 0 83 833 1,91 7 Mont h 04 1,00 0 83 833 1,91 7 Mont h 05 1,00 0 83 833 1,91 7 Mont h 06 1,00 0 83 833 1,91 7 Mont h 07 1,00 0 83 833 1,91 7 Mont h 08 1,00 0 83 833 1,91 7 Mont h 09 1,00 0 83 833 1,91 7 Mont h 10 1,00 0 83 833 1,91 7 Mont h 11 1,00 0 83 833 1,91 7 Mont h 12 1,00 0 83 833 1,91 7
23
24
INTRODUCTION
Poultry meat is an important source of high quality proteins, minerals and vitamins to balance the human diet. Specially developed breeds of chicken meat (broiler) are now available with the ability of quick growth and high feed conversion efficiency. Depending on the farm size, broiler farming can be a main source of family income or can provide subsidiary income and gainful employment to farmers throughout the year. Poultry manure has high fertilizer value and can be used for increasing yield of all crops. The advantages of broiler farming are Initial investment is a little lower than layer farming Rearing period is 6-7 weeks only More number of flocks can be taken in the same shed Broilers have high feed conversion efficiency i.e. least amount of feed is required for unit body weight gain in comparison to other livestock. Faster return from the investment Demand for poultry meat is more compared to other types of meat
MARKET POTENTIAL
Changes in life style and food habits of consumers, improvement in standards of living etc. have resulted into increase in per capita consumption of poultry meats but per capita consumption of these commodities in our country is still far below that of developed countries showing enormous potential/scope for poultry development.
25
1.2. Competitive Analysis of Product If we consider demand and supply, the present supply unable to meet the existing demands. How ever due to high demand factor no marketing competition.
Present Demand
>>>>
Existing Supply
1.3. Main Customers Type of Product Customer Meet Processors Matured birds Coconut growers, Farmers and compost Poultry Litter manufacturers 1.4. Total Demand There is an increasing demand for meets, due to that increasing demand for broiler birds.
26
1 2 3 4 5
6 7 8 9
10 10
ECONOMICS OF BROILER FARMING - TECHNO - ECONOMIC PARAMETERS No. of birds (per week) 3,000 Rearing period (weeks) 6 , (42 Days) No. of batches per cycle 6 No. of batches introduced: I year and onwards 52 No. of batches sold: I year 45 II year on wards 52 Mortality rate 4% Expected weight per bird 2Kg Average selling price per Kg. Rs.220/= Feed requirement (Kg/bird) Broiler Starter 1.6Kg Broiler Finisher 1.9Kg Average selling price Empty feed bag 20 Poultry litter **
** Due to high paddy husk content, low demand for broiler litter compare to layer.
1st 2nd
3000 3000
4% 4%
2880 2880
2 Kg 2 Kg
5760 Kg 5760 Kg
Rs220 Rs220
Rs1267200 Rs1267200
# birds introduced
Average weight
Year
45 52
Amount
Income
# bags
for 52 weeks
Starter Finisher
1.6Kg 1.9Kg
4800Kg 5700Kg
249600Kg 296400Kg
4992 5928
4992 5928
Rs.20 Rs.20
Rs.99840 Rs.118560
27
Total
1.5. SALES FORECAST 1st Year Annual Income LKR Annual Sales Quantity Unit Price LKR 2nd year Annual Income LKR 218,400.00 66,112,800.00 28 Annual Sales Quantity 10,920.00 Unit Price LKR 20.00
Birds
20.00
218,400.00
57,242,400.00
** Due to high paddy husk content, low demand for broiler litter compare to layers litter.
1.6. Marketing Strategy There are no significant marketing strategies, Supply for the dealers as live weight chicken. Selling price will be based on marketing price.
2. PRODUCTION PLAN
2.1. Production Process Provide Shelter and Protection, Feeds, vitamins, minerals, Water and Medicines ECONOMICS OF BROILER FARMING - TECHNO - ECONOMIC PARAMETERS The proposed farming system is farming under the intensive management. 1 2 3 4 5 No. of birds (per week) Rearing period (weeks) No. of batches per cycle Broiler Shed capacity Required number of Broiler Sheds 3,000 6 6 1,500 birds per shed 16
4th week Ready to Introduce 3rd week 1st week 2nd week
29
DETAILED COST ESTIMATES ALONG WITH MEASUREMENTS OF VARIOUS CIVIL STRUCTURES A) Land Extent Ownership Detail about present land B) Building Types of building Floor area Construction cost Types of building Floor area Construction cost Types of building Floor area Construction cost Total - 16 poultry sheds - 32,000 sq. ft. - Rs. 6,873,200/= - Store - 500sq,ft. - Rs.350,000/= - Workers Hut - Rs.75000/= 7,298,200 : 25 Acres : Land was taken from the Sri Lanka Mahaweli Authority on a 35 years lease. : 1400 coconut trees 3 acres of Papaya been grown Depreciation % 10% Annual Depreciation
Cajuns roof
Wire Net
Feedrer (Poultry Net)
Concrete Polls
Waterer
17ft
30
Details proposed cost for Broiler Sheds No Items 1 3 cubs of sand @ 4000/= 2 3 Cubs of metal @ 6000/= 3 60 Bags of Cements @ 750/= 4 11 No of 15 concrete polls @ 2250/= 5 22 No of 8 concrete polls @ 1200/= 6 Concrete polls transport 7 Wire Net- 4 rolls @ 6500/= 8 Timber for roofing and other activity 1715 @ 35/= 9 Nails and roll plugs 10 Cajuns 1800No, @ 15/= 11 Cajuns transport 12 Bricks 13 Mason and carpenter charges 14 Paddy husk, 20 bags @ 20/= per bag 15 Transport 16 Auto drinkers, feeders & lightening 17 Wiring and other applications 18 2 No of Brooders @ 7500/= Total cost per shed 16 no of sheds are needed. So cost for the all sheds Cost 12,000 18,000 45,000 24,750 26,400 20,000 26,000 60,025 4,000 27,000 20,000 10,000 70,000 400 2,000 23,000 26,000 15,000 429,575/=
=6,873,200/=
C) Plant, Machinery, Vehicles and other fixed Assets Value Property (LKR) Depreciation 02 No of motor cycles 210,000 01 No of Hand Tractor 350,000 01 No ofTruck Vehicle 600,000 Water supply system 300,000 01 No of Weighting balance hanging 15,000 01 no of Weighting balance flat model 65,000 01 No of refrigerator 26,000 Total 1,566,000
% 10 10 10 10 10 10 10
Annual Depreciation 21,000 35,000 60,000 30,000 1,500 6,500 2,600 156,600
D)Cost of Chicks Rice per chick Chick requirements per week Chick requirements for year Chick cost for the year
31
E) Direct Labour Manager (Supervisors) 01 @ Rs. 23000/- per month Skilled labourers 03 @ Rs. 15000/- per month Per year 276,000 ETF & EPF (15%) 41,400 Total 317,400
540,000
81,000
F) Feed cost
Price per bag Types of feed # 50 Kg bags for 3000 Amount for 52 weeks
Starter Finisher
1.6Kg 1.9Kg
4800Kg 5700Kg
249600Kg 296400Kg
4992 5928
3550 3400
17,721,600 20,155,200
37,876,800
G) Annual Production Overhead Expenses Estimated other expenses such as Fuel, electricity, maintenance, consultancy charges, veterinary surgeon charges, sundries and other expenses will be Rs. 39000/= per month. Costing for per Bird Rate per unit Rs. Requirement per Cost for bird bird 90 1 71 68 4 3 6 3
Costing item 1.Chicks 2.Feeds 2.1.Starter 2.2.finisher 3.Medicines 4.Transport 5.Salary 6.Other Expenses
Costing item 1.Chicks 2.Feeds 2.1.Starter 2.2.finisher 3.Medicines 4.Transport 5.Salary 6.Other Expenses Total Cost
1.6 114 1.9 130 1 4 1 3 1 6 1 3 Cost for per bird 350 Costing for Year # Birds per year =156000 Year costing Rs. 90 114 130 4 3 6 3 350
14,040,000.00 17,784,000.00 20,280,000.00 624,000.00 468,000.00 936,000.00 468,000.00 54,600,000.00
Total
cost
90
32
3. ORGANIZATION & MANAGEMENT PLAN The overall management of the Firm affaires will be managed by qualified farm manager under the supervision of .. 3.1. Organizational Structure 1 Manager (Supervisors) Skilled labourers 3.2. Pre-Operating Expenses
Pre-Operating Activity * Deposit to chick supplier Expenses Amount (LKR) 810000
* 50% deposit should open with chick supplier; to keep chick selling price as Rs.90/= constantly
3.4.Management & Administration Cost Administration Activities Insurances for Vehicles Stationery Welfare Other Total Administration Cost
33
Fixed Assets Building 16 poultry sheds Store Workers Hut Officers Quarters 02 No of motor cycles 01 No of Hand Tractor 01 No of Truck Vehicle Water supply system 01 No of Weighting balance hanging 01 no of Weighting balance flat model Plant, Machinery, Vehicles and other fixed Assets
210,000.00 350,000.00 600,000.00 100,000.00 200,000.00 873,200.00 150,000.00 6,000,000.00 200,000.00
75,000.00
150,000.00 850,000.00
15,000.00 65,000.00
01 No of refrigerator 26,000.00 Administration and Management Fixed Assets and Equipment Office equipments/furniture Telephone 01 Fixed Assets Total ( a) Pre Operative Expenses Deposit to chick supplier Total Pre Operative Expenses ( b ) Working Capital Expenditure Total working Capital Expenditure( c ) Total Project Cost a+b+c Investment Contribution % 10,000.00 6,000.00
10,000.00 6,000.00
9,880,200.00
10,000.00
800,000.00
810,000.00
810,000.00
2,380,000.00
3,500,000.00
5,880,000.00 16,570,200.00
100.00%
4,070,200 24.56%
12,500,000 75.44%
34
Working Capital Costing item 1.Chicks 2.Feeds 2.1.Starter 2.2.finisher 3.Medicines 4.Transport 5.Salary 6.Other Expenses
A. 4 Batchers required full working capital = 43000350= 4,200,000.00 B. 2 Batchers required 80% of working capital = 23000350.8= 1,680,000.00 Full working capital requirement = 5,880,000.00
4.1.1.Loans Repayment Schedule Name of the loan Loan Amount 12,500,000 Period of Repayment 5 Years Interest Rate 8% Guarantee Personal Assets
Year 1 2 3 4
2,500,000
35
4.2. Profitability forecast Proposed Item Sales Account Sales Less : BTT 1% Net Sales A Production Account 1.Chicks 2.Feeds 2.1.Starter 2.2.finisher 3.Medicines 4.Transport 5.Salary 6.Other Expenses Total Production cost Gross profit Management & Administration Account Insurance for Vehicles Stationery Welfare Other Total Administration Cost Depreciation of building Depreciation of Plant, Machinery, Vehicles and other fixed Assets Depreciation of Administration and Management Equipment Depreciation of Officers Quarters Lone Interest *Pre-Operation Expenses Net Profit before tax Income Tax Net Profit after Tax 1st Year 57,242,400 0 2nd Year 3rd Year
350*3000*45+ Working 14,040,000.00 capitol 17,784,000.00 20,280,000.00 624,000.00 468,000.00 936,000.00 468,000.00 53,130,000 54,600,000.00 4,112,400 11,512,800
156,600
156,600
162,000
0 2,073,980
0 9,674,380
36
Net profit before tax 100 Net Sales st For the 1 Year = 2,073,980100
57,242,400
3.62%
9,674,380
100
14.63%
66,112,800
Rate of Investment
100
100
12.51%
16,570,200.00
9,674,380
100
58.38%
16,570,200.00
37
Cash Inflow Client Contribution Loan Sales Income (Net) B/F Total Cash Inflow Cash Outflow Land Building 16 poultry sheds Store Workers Hut Officers Quarters Total Machinery & Equipment 02 No of motor cycles 01 No of Hand Tractor 01 No of Truck Vehicle Water supply system 01 No of Weighting balance hanging 01 no of Weighting balance flat model 01 No of refrigerator Office equipments /furniture Telephone 01 Total
4,070,200 12,500,000
0 0 16,570,200.00 0 6,873,200.00 350,000.00 75,000.00 1,000,000.00 8,298,200.00 210,000.00 350,000.00 600,000.00 300,000.00 15,000.00 65,000.00 26,000.00 10,000.00 6,000.00 1,582,000.00
Pre-Operating Expenses 810,000.00 Direct Material Expenses 53,130,000.00 54,600,000.00 Management & Administration 40,000.00 40,000.00 Expenses Lone 2,500,000.00 2,500,000.00 Lone interest 900,000.00 700,000.00 Total Cash Outflow 10,690,200.00 56,570,000.00 57,840,000.00 Closing Cash Balance 5,880,000.00 6,552,400.00 14,825,200.00
38
ECONOMICS OF BROILER FARMING - TECHNO - ECONOMIC PARAMETERS 1 2 3 4 No. of birds (per week) Rearing period (weeks) No. of batches per cycle No. of batches introduced: I year (on considering 3 months construction period) II year onwards No. of batches sold: I year (on considering construction period + rearing period) II year on wards Space requirement per bird (s.ft.) Cost of construction of shed (Rs./s.ft.) Store room (s.ft.) Cost of construction of store room (Rs./s.ft.) Mortality in 6-7 weeks (%) Cost of DOCs (Rs./chick) Supply of free chicks (%) Feed requirement (kg./bird) Feed cost (Rs./kg) Expenditure on labour (Rs. per month) one labourer) Over heads cost (Cost of medicines, vaccine, insurance litter etc.) (Rs./bird) Average body wt. of birds (Kg./bird) Price of broilers (Rs./kg. body weight) Income from manure (Rs. per bird) No. of gunny bags (per ton of feed) Income from gunny bags (Rs./bag) Depreciation on sheds (%) Depreciation on equipment (%) Construction period ((months) Rest period for broiler sheds (days) 500 7 8 40 52 33 52 1 200 200 220 4 140 4 3.2 60 10000 8 1.5 280 3 20 25 10 10 3 7-10
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
39
ECONOMICS OF BROILER FARMING - INVESTMENT COST Sr. No 1 Particulars Specifications Physical Total cost Unit Units (Rs.) cost(Rs./ Unit) Sheds and other structures a) Broiler sheds (8 sheds) b) Store room c) Fencing Water supply system a) Digging and construction of well b) Water tank c) 3 HP electric motor/pumpset and other accessories and pipeline etc. d) Electrical installation/equipment Equipments a) Feeders and waterers b) Dressing equipment Capitalisation of recurring expenses for first 8 batches a) Chick cost b) Feed cost for 4080 birds c) Overheads such as cost of, Medicines, vaccine, insurance, litter d) Labour cost Total financial outlay (TFO) 3.2 kg/bird Rs.5.00/bird
200 220
1 Ls 5000 litres 1 Ls
100,000 1 50,000
50,000
4000 birds Ls
75,000 25,000
140 60 8
3 months
10,000
90,000 2,660,000
40
ECONOMICS OF BROILER FARMING - FLOCK PROJECTION CHART Year I II III IV V VI No. of batches introduced 40 52 52 52 52 52 No. of batches sold 33 52 52 52 52 52
Note: 1) Initial period for three months, is considered as construction period and accordingly only 40 batches will be introduced in first year. 2) Closing stock of 7 batches with an average age of 4 weeks will be there at the end of sixth year and the value of the same is taken into account for cash flow analysis. 3) The average value of the closing stock is considered at Rs. 100/- per bird.
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ECONOMICS OF BROILER FARMING - CASH FLOW ANALYSIS Particulars I 1 2 a) b) c) d) II 1 2 3 4 a) b) Costs: Capital cost:* Recurring costs: Cost of chicks Cost of feed Misc. expenses Labour cost Total Costs Benefits Sale of birds Sale of manure Sale of gunny bags Depreciated value of Sheds Equipment (including water supply equipment) Value of closing stock Total Benefits Net Benefits I II-V VI
0 0
0 0
349,600 128,000
5 6
0 7,011,500 -1,252,500
0 11,039,600 1,839,600
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100
100 100
8,773,100 29,090,700
30.15%
Rate of Investment
100
100
2,660,000
329.8%
43
44
INTRODUCTION
Poultry Management is a popular business in Sri Lanka and it has long history. Now it is a widely available business activity due to many reasons like, High demand for meets and eggs Production can get within a short period Low space requirement, easy management and high profitability Commercial Species with good characters and high productivity had been introduced by using modern breeding techniques. Modern commercial types have same characters. Characters of Layer types Egg production pattern # Weeks 18-20 Egg Start production 27 Increase 93% Peak 33 93<% 80 Gradually 65% decrease
Total egg production is around 290-300 eggs Consume 2.48-2.51Kg of feed for the production of 12 eggs Have Medium size body with light weight
MARKET POTENTIAL
Changes in life style and food habits of consumers, improvement in standards of living etc. have resulted into increase in per capita consumption of poultry products but per capita consumption of these commodities in our country is still far below that of developed countries showing enormous potential/scope for poultry development.
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Present Demand
>>>>
Type of Product Eggs Matured birds Poultry Litter
Existing Supply
1.3. Main Customers Customer Egg collectors Meet Processors Coconut growers, Farmers and compost manufacturers 1.4. Total Demand
46
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ECONOMICS OF 500 LAYER FARM - INVESTMENT COST Sr. No 1 Particulars Specifications Physical Units Unit cost(Rs./ Unit) Shed and other structures a) LAYER shed b) Store room Water supply system a) Water tank b) electric motor/pump set and other accessories and pipeline etc. c) Electrical installation/equipment Equipments a) Feeders and waterers b) Dressing equipment Capitalization of recurring expenses for first 8 batches a) Chick cost b) Feed cost for 500 birds up to 20 weeks c) Overheads such as cost of, Medicines, vaccine, insurance, litter d) Labour cost layering of 500 layers as the part time family business Total financial outlay (TFO) Total cost (Rs.)
5,000
500 birds Ls
15,000 5,000
500DOCs
180
Rs.8.00/bird
500 birds
556,186
48
339,000 90,000
975,023.3
207,400 80,750
5 6
0
2,123,150 669,126.7
49
100
100
=
36.46%
Rate of Investment
100
100
120.3%
50
Chick Stage IN Fixture proportion 0.223486 0.284437 0.142219 0.162536 0.040634 0.030475 0.008127 0.101585 0.002032 0.001219 0.001219 0.000813 0.000203 0.001016 requirement 122.02357 155.30272 77.651361 88.744413 22.186103 16.639577 4.4372206 55.465258 1.1093052 0.6655831 0.6655831 0.4437221 0.1109305 0.5546526 546 Kg Price 20 53 81 25 7 170 60 19 25 400 300 500 450 100 Cost 2440.471 8231.044 6289.76 2218.61 155.3027 2828.728 266.2332 1053.84 27.73263 266.2332 199.6749 221.861 49.91873 55.46526 24304.88 IN Fixture
Grows Stage proportion 0.268789 0.268789 0.144733 0.124057 0.062028 0.031014 0.010338 0.082704 0.003101 0.001241 0.001241 0.000827 0.000103 0.001034 requirement 615.259 615.259 331.2933 283.9657 141.9828 70.99142 23.66381 189.3105 7.099142 2.839657 2.839657 1.893105 0.236638 2.366381 2289 Kg Price 20 53 81 25 7 170 60 19 25 400 300 500 450 100 Cost 12305.18 32608.73 26834.76 7099.142 993.8799 12068.54 1419.828 3596.899 177.4785 1135.863 851.897 946.5523 106.4871 236.6381 100381.9 Approximate feed cost for the 500 layers IN Fixture
Layer Stage proportion 0.27137 0.250496 0.125248 0.125248 0.104373 0.02505 0.00835 0.083499 0.002087 0.001044 0.001044 0.001044 0.000104 0.001044 requirement 5695.929 5257.781 2628.891 2628.891 2190.742 525.7781 175.2594 1752.594 43.81484 21.90742 21.90742 21.90742 2.190742 21.90742 20989.5Kg Rs. 975023.3 Price 20 53 81 25 7 170 60 19 25 400 300 500 450 100 Cost 113918.6 278662.4 212940.1 65722.26 15335.19 89382.28 10515.56 33299.28 1095.371 8762.968 6572.226 10953.71 985.8339 2190.742 850336.5
Rice bran Maize Soya Broken Rice Shell Powders Fish meal Dicalcium Phosphate Coconut Poonac Salt Premix (Vitamins) Premix (Minerals) Lysine Vitamin E Tocsin Bind
Total
Daily Feed Requirement chart - Crusi Thakshana Wisheya Sangrahaya Page 220 Ration ingredients, its proportions and ingredients market prices From Poultry Farmer in Kurunegala District (2010/08)
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% of Egg Production
100 80 60 40 20 0 1
1st Batch
2nd Batch
3rd Batch
Egg production takes as the 300 eggs from a bird. According to the characters of the layers
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