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INTRODUCTION

Poultry Management is a popular business in Nepal 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
Egg

18-20

27

80
Gradually

93% Peak
production

33

Start

Increase

93<%
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.

1.Marketing Plan for 5000 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. However due to high demand factor no marketing competition.
1.3. Main Customers
Customer
Egg collectors
Meet Processors
Coconut growers, Farmers and compost
Manufacturers

Type of Product
Eggs
Matured birds
Poultry Litter

1.4. Total Demand


There is an increasing demand for poultry products.
ECONOMICS OF 500 LAYER FARM - TECHNO - ECONOMIC
PARAMETERS
1
2
3
4
5
6
7
8
9
10
11
12

No. of birds rearing


Rearing period (weeks)
No. of batches per cycle
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 (%)
Cost of DOCs (Rs./chick)
Supply of free chicks (%)
Feed requirement (kg./bird)
Feed cost (Rs./kg)

5000
80
1
2
200
200
220
4
60*
4
See Feed Cost Calculation

13
14
15
16

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


Over heads cost (Cost of medicines,
vaccine, insurance litter etc.) (Rs./bird)
Price of an Egg
Egg production per bird

17
18
19
20
21
22

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


Price of layers (Rs./kg. body weight)
Income from manure (Rs. per bird)
Depreciation on sheds (%)
Depreciation on equipment (%)
Rest period for sheds (days)

5000
8
10
250 / See pattern of Egg
production
1.8
500
10
10
10
7-10

ECONOMICS OF 5000 LAYER FARM - INVESTMENT COST


Sr. Particulars
Specifications Physical
Unit
Total
Units
cost(Rs./
cost
No

Unit)
1

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
3
Equipments
a) Feeders and
waterers
b) Dressing
equipment
4
Capitalization of
recurring expenses for
first 8 batches
a) Chick cost
b) Feed cost for 500

2 sft. per
bird(DL)

(Rs.)

10000 sft.

200

200,000

200 sft

220

44,000

20,000

50,000

50,000

5000
litres
1 Ls

5,000

500 birds

15,000

Ls

5,000

500DOCs

180

90,000
124,686

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
5
Total financial
outlay (TFO)

Rs.8.00/bird

500 birds

a)
b)
c)
d)
II

a)
b)

Costs:
1Capital cost:*
2Recurring costs:
Cost of chicks
Cost of feed
Misc. expenses
Labour cost
Total Costs
Benefits
1Sale of birds
2Sale of manure
3Sale of egg
4Depreciated
value of
Sheds
Equipment
(including water
supply
equipment)
5Value of closing
stock
6Total Benefits
Net Benefits

2,500

556,186

Excluding the value of the land and well.


ECONOMICS OF 500 LAYER FARM - CASH FLOW ANALYSIS
Particulars

1st batch

339,000
90,000
975,023.3
50,000
1,454,023.3
180,000
5,000
1,650,000

207,400
80,750

0
2,123,150
669,126.7

Rate of Net profit before


tax

Net profit before tax


Net Sales

100

669,126.7

100

1835000
=
36.46%
Rate of Investment

Net profit before tax


Total Project Cost

669,126.7
556,186

100

100
120.3%

Stage
Weeks

Chick Stage

Daily Feed Requirement


chart
Grows Stage

Feed Cost Calculation

Layer S

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
1
g/Day
13 6 19 29 38 41 43 46 48 51 53 54 56 57 59 61 62 64 64 76 83 88 88 91 91 93 94 96 97
g/Animal
1092
4578
41979
For 500
546Kg
2289Kg
20989.
IN
Fixture
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
Chick Stage
propo require Pri
rtion ment ce
0.223 122.02
486 357 20
0.284 155.30
437 272 53
0.142 77.651
219 361 81
0.162 88.744
536 413 25
0.040 22.186
634 103 7
0.030 16.639
475 577170
0.008 4.4372
127 206 60
0.101 55.465
585 258 19
0.002 1.1093
032 052 25
0.001 0.6655
219 831400
0.001 0.6655
219 831300
0.000 0.4437
813 221500
0.000 0.1109
203 305450
0.001 0.5546
016 526100
546
Kg

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

Grows Stage
IN
IN
Fixtur proporrequire Pri
Fixtu
e
tionment ce Costre
130 0.268615.25 20 1230 130

130
70
60
30
15
5
40
1.5
0.6
0.6
0.4
0.05
0.5
483.6
5Kg

789
9
5.18
0.268 615.25 3260
789
9 53 8.73 120
0.144 331.29 2683
733
33 81 4.76 60
0.124 283.96 7099
057
57 25 .142 60
0.062 141.98
993.
028
28 7 8799 50
0.031 70.991 17 1206
014
42 0 8.54 12
0.010 23.663 1419
338
81 60 .828
4
0.082 189.31 3596
704
05 19 .899 40
0.003 7.0991
177.
101
42 25 4785
1
0.001 2.8396 401135.
241
57 0 863 0.5
0.001 2.8396 30 851.
241
57 0 897 0.5
0.000 1.8931 50 946.
827
05 0 5523 0.5
0.000 0.2366 45 106.
103
38 0 4871 0.05
0.001 2.3663 10 236.
034
81 0 6381 0.5
2289
479.0
Kg
1003 5Kg
81.9

Approximate feed cost for the 500 layers


Layer
Stage
proportiorequiremen Pric
n
t
eCost
113918.
0.27137 5695.929 206
278662.
0.250496 5257.781 534
212940.
0.125248 2628.891 811
65722.2
0.125248 2628.891 256
15335.1
0.104373 2190.742 79

0.02505 525.7781
0.00835 175.2594
0.083499 1752.594
0.002087 43.81484
0.001044 21.90742
0.001044 21.90742
0.001044 21.90742
0.000104 2.190742
0.001044 21.90742
20989.5Kg

89382.2
1708
10515.5
606
33299.2
198
1095.37
251
8762.96
4008
6572.22
3006
10953.7
5001
985.833
4509
2190.74
1002

850336.5
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)