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Business Plan Hachery

Business Plan Hachery

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Proposed (LKR)

Description

Existing
Year (LKR)

1st Year

2nd Year

3rd Ye.

Cash Inflow

Client Contribution

4,070,200

Loan

12,500,000

Sales Income (Net)

0 57,242,400.00 66,112,800.00

B / F

0 5,880,000.00 6,552,400.00

Total Cash Inflow

16,570,200.00 63,122,400.00 72,665,200.00

Cash Outflow

Land

0

Building
16 poultry sheds

6,873,200.00

Store

350,000.00

Workers Hut

75,000.00

Officers Quarters

1,000,000.00

Total

8,298,200.00

Machinery & Equipment
02 No of motor cycles

210,000.00

01 No of Hand Tractor

350,000.00

01 No of Truck Vehicle

600,000.00

Water supply system

300,000.00

01 No of Weighting balance

hanging

15,000.00

01 no of Weighting balance

flat model

65,000.00

01 No of refrigerator

26,000.00

Office equipments /furniture

10,000.00

Telephone 01

6,000.00

Total

1,582,000.00

Pre-Operating Expenses

810,000.00

Direct Material Expenses

53,130,000.00 54,600,000.00

Management & Administration
Expenses

40,000.00

40,000.00

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

*** So Pay Back Period is less than 3 Years. ***

39

ECONOMICS OF BROILER FARMING - TECHNO - ECONOMIC
PARAMETERS

1 No. of birds (per week)

500

2 Rearing period (weeks)

7

3 No. of batches per cycle

8

4 No. of batches introduced:
I year (on considering 3 months
construction period)

40

II year onwards

52

5 No. of batches sold:
I year (on considering construction
period + rearing period)

33

II year on wards

52

6 Space requirement per bird (s.ft.)

1

7 Cost of construction of shed (Rs./s.ft.)

200

8 Store room (s.ft.)

200

9 Cost of construction of store room (Rs./s.ft.)

220

10 Mortality in 6-7 weeks (%)

4

11 Cost of DOCs (Rs./chick)

140

12 Supply of free chicks (%)

4

13 Feed requirement (kg./bird)

3.2

14 Feed cost (Rs./kg)

60

15 Expenditure on labour (Rs. per month) one
labourer)

10000

16 Over heads cost (Cost of medicines,
vaccine, insurance litter etc.) (Rs./bird)

8

17 Average body wt. of birds (Kg./bird)

1.5

18 Price of broilers (Rs./kg. body weight)

280

19 Income from manure (Rs. per bird)

3

20 No. of gunny bags (per ton of feed)

20

21 Income from gunny bags (Rs./bag)

25

22 Depreciation on sheds (%)

10

23 Depreciation on equipment (%)

10

24 Construction period ((months)

3

25 Rest period for broiler sheds (days)

7-10

40

ECONOMICS OF BROILER FARMING - INVESTMENT COST

Sr.

Unit
cost(Rs./

No

Particulars

SpecificationsPhysical
Units

Unit)

Total cost
(Rs.)

1

Sheds and other
structures
a) Broiler sheds (8
sheds)

1 sft. per
bird(DL)

4000
sft.

200

800,000

b) Store room

200 sft

220

44,000

c) Fencing

Barbed wire

30,000

2 Water supply system
a) Digging and
construction of well

13'dia
x33'depth

1 Ls 100,000 100,000

b) Water tank

5000
litres

1

20,000

c) 3 HP electric
motor/pumpset and
other accessories and
pipeline etc.

1 Ls

50,000

50,000

d) Electrical
installation/equipment

50,000

3

Equipments
a) Feeders and
waterers

4000
birds

75,000

b) Dressing
equipment

Ls

25,000

4

Capitalisation of
recurring expenses for
first 8 batches
a) Chick cost

4000
DOCs

140

560,000

b) Feed cost for 4080
birds

3.2 kg/bird

13056
kg

60

783,360

c) Overheads such as
cost of, Medicines,
vaccine, insurance,
litter

Rs.5.00/bird

4080
birds

8

32,640

d) Labour cost

3 months

3

10,000

90,000

5

Total financial
outlay (TFO)

2,660,000

* Excluding the value of the land.

41

ECONOMICS OF BROILER FARMING - FLOCK PROJECTION CHART

Year

No. of batches introduced

No. of batches sold

I

40

33

II

52

52

III

52

52

IV

52

52

V

52

52

VI

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.

42

ECONOMICS OF BROILER FARMING - CASH FLOW ANALYSIS

Particulars

I

II-V

VI

I

Costs:
1 Capital cost:*

1,194,000

0

0

2 Recurring costs:

a)

Cost of chicks

2,800,000

3,640,000

3,640,000

b)

Cost of feed

3,840,000

4,992,000

4,992,000

c)

Misc. expenses

160,000

208,000

208,000

d)

Labour cost

270,000

360,000

360,000

Total Costs

8,264,000

9,200,000

9,200,000

II

Benefits
1 Sale of birds

6,930,000

10,920,000

10,920,000

2 Sale of manure

49,500

78,000

78,000

3 Sale of gunny
bags

32,000

41,600

41,600

4 Depreciated
value of

a)

Sheds

0

0

349,600

b)

Equipment
(including water
supply
equipment)

0

0

128,000

5 Value of closing
stock

0

0

350,000

6 Total Benefits

7,011,500

11,039,600

11,867,200

Net Benefits

-1,252,500

1,839,600

2,667,200

43

Rate of Net profit before
tax

=

Net profit before tax

× 100

Net Sales

-1,252,500+1,839,600×4+2,667,200 × 100

29,090,700

=

8,773,100

× 100

29,090,700

30.15%

Rate of Investment

=

Net profit before tax

× 100

Total Project Cost

=

8,773,100

× 100

2,660,000

329.8%

44

Business Plan for the;

500 LAYER FARM

45

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

27

33

80

Egg
production Start

Increase93%

Peak 93<% Gradually

decrease 65%

• 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.

46

1. Marketing Plan for 500 layer farm

1.1. Description of the Product

• Eggs
• Meet
• Poultry Litter

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
Customer

Type of Product

Egg collectors

Eggs

Meet Processors

Matured birds

Coconut growers, Farmers and compost
manufacturers

Poultry Litter

1.4. Total Demand

There is an increasing demand for poultry products.

47

ECONOMICS OF 500 LAYER FARM - TECHNO - ECONOMIC

PARAMETERS

1 No. of birds rearing

500

2 Rearing period (weeks)

80

3 No. of batches per cycle

1

4 Space requirement per bird (s.ft.)

2

5 Cost of construction of shed (Rs./s.ft.)

200

6 Store room (s.ft.)

200

7 Cost of construction of store room (Rs./s.ft.)

220

8 Mortality (%)

4

9 Cost of DOCs (Rs./chick)

180

10 Supply of free chicks (%)

4

11 Feed requirement (kg./bird)
12 Feed cost (Rs./kg)

See Feed Cost Calculation

13 Expenditure on labor (Rs. per month) one laborer)

10000

14 Over heads cost (Cost of medicines,
vaccine, insurance litter etc.) (Rs./bird)

8

15 Price of an Egg

11

16 Egg production per bird

300 / See pattern of Egg
production

17 Average body wt. of birds (Kg./bird)

1.8

18 Price of broilers (Rs./kg. body weight)

200

19 Income from manure (Rs. per bird)

10

20 Depreciation on sheds (%)

10

21 Depreciation on equipment (%)

10

22 Rest period for sheds (days)

7-10

48

ECONOMICS OF 500 LAYER FARM - INVESTMENT COST

Sr.

Unit
cost(Rs./

No

Particulars

SpecificationsPhysical
Units

Unit)

Total
cost
(Rs.)

1

Shed and other
structures
a) LAYER shed

2 sft. per
bird(DL)

1000 sft.

200

200,000

b) Store room

200 sft

220

44,000

2 Water supply system
a) Water tank

5000
litres

1

20,000

b) electric
motor/pump set and
other accessories and
pipeline etc.

1 Ls

50,000 50,000

c) Electrical
installation/equipment

5,000

3

Equipments
a) Feeders and
waterers

500 birds

15,000

b) Dressing
equipment

Ls

5,000

4

Capitalization of
recurring expenses for
first 8 batches
a) Chick cost

500DOCs

180

90,000

b) Feed cost for 500
birds up to 20 weeks

124,686

c) Overheads such as
cost of, Medicines,
vaccine, insurance,
litter

Rs.8.00/bird 500 birds

8

2,500

d) Labour cost
layering of 500 layers
as the part time
family business

5

Total financial
outlay (TFO)

556,186

• Excluding the value of the land and well.

49

ECONOMICS OF 500 LAYER FARM - CASH FLOW ANALYSIS

Particulars

1st

batch

I

Costs:
1Capital cost:*

339,000

2Recurring costs:

a)

Cost of chicks

90,000

b)

Cost of feed

975,023.3

c)

Misc. expenses

50,000

d)

Labour cost

-

Total Costs

1,454,023.3

II

Benefits
1Sale of birds

180,000

2Sale of manure

5,000

3Sale of egg

1,650,000

4Depreciated
value of

a)

Sheds

207,400

b)

Equipment
(including water
supply
equipment)

80,750

5Value of closing
stock

0

6Total Benefits

2,123,150

Net Benefits

669,126.7

50

Rate of Net profit before
tax

=

Net profit before tax

× 100

Net Sales

669,126.7

× 100

1835000

=

36.46%

Rate of Investment

=

Net profit before tax

× 100

Total Project Cost

=

669,126.7

× 100

556,186

120.3%

51

Feed Cost Calculation

Daily Feed Requirement chart

Stage

Chick Stage

Grows Stage

Layer Stge

Weeks

1 2

3

4

5

6 7 8 9 1011121314151617181920212223 24 2526272829303132333435

__7980

g/Day

13 1619293841 43 46 48 5153545657596162646476838888 91 9193949697979898999999__9990

g/Animal

1092

4578

41979

For 500

546Kg

2289Kg

20989.5Kg

Chick Stage

Grows Stage

Layer Stage

IN
Fixture proportion requirementPrice

Cost

IN
Fixture

proportionrequirement Price

Cost

IN Fixture

proportionrequirementPrice

Cost

Rice bran

110

0.223486 122.02357

202440.471

130

0.268789

615.259

2012305.18

130

0.27137

5695.929

20113918.6

Maize

140

0.284437 155.30272

538231.044

130

0.268789

615.259

5332608.73

120

0.250496

5257.781

53278662.4

Soya

70

0.142219 77.651361

81

6289.76

70

0.144733

331.2933

8126834.76

60

0.125248

2628.891

81212940.1

Broken Rice

80

0.162536 88.744413

25

2218.61

60

0.124057

283.9657

257099.142

60

0.125248

2628.891

2565722.26

Shell Powders

20

0.040634 22.186103

7155.3027

30

0.062028

141.9828

7993.8799

50

0.104373

2190.742

715335.19

Fish meal

15

0.030475 16.639577

1702828.728

15

0.031014

70.99142

17012068.54

12

0.02505

525.7781

17089382.28

Dicalcium Phosphate

4

0.008127 4.4372206

60266.2332

5

0.010338

23.66381

601419.828

4

0.00835

175.2594

6010515.56

Coconut Poonac

50

0.101585 55.465258

19

1053.84

40

0.082704

189.3105

193596.899

40

0.083499

1752.594

1933299.28

Salt

1

0.002032 1.1093052

2527.73263

1.5

0.003101

7.099142

25177.4785

1

0.002087

43.81484

251095.371

Premix (Vitamins)

0.6

0.001219 0.6655831

400266.2332

0.6

0.001241

2.839657

4001135.863

0.5

0.001044

21.90742

4008762.968

Premix (Minerals)

0.6

0.001219 0.6655831

300199.6749

0.6

0.001241

2.839657

300

851.897

0.5

0.001044

21.90742

3006572.226

Lysine

0.4

0.000813 0.4437221

500

221.861

0.4

0.000827

1.893105

500946.5523

0.5

0.001044

21.90742

50010953.71

Vitamin E

0.1

0.000203 0.1109305

45049.91873

0.05

0.000103

0.236638

450106.4871

0.05

0.000104

2.190742

450985.8339

Tocsin Bind

0.5

0.001016 0.5546526

10055.46526

0.5

0.001034

2.366381

100236.6381

0.5

0.001044

21.90742

1002190.742

Total 492.2Kg

546 Kg

483.65Kg

2289 Kg

479.05Kg

20989.5Kg

24304.88

100381.9

850336.5

Approximate feed cost for the 500 layers

Rs.
975023.3

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)

52

Egg Production Pattern

0

20

40

60

80

100

124477093116139162185208231

Weeks

% of Egg Production

Egg production takes as the 300 eggs from a bird. According to the characters of the layers

1st

Batch

2nd

Batch

3rd

Batch

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