RABBITICIOUS- RABBIT

FARMING BUSINESS

Saira Kanwal
Asma Talpur
Shoaib Awan
Darban Ali
Shaoor Ahmed.
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Executive Summary:
We plan to rear Rabbits for their wool, fur and meat. Rabbits meat is nutritious and is considered
better than other kinds of meat, it contains low cholesterol than chicken and turkey. And it is
suitable for special diets, such as those for heart disease patients, diets for the aged, low sodium
diets, weight reduction diets. Rabbits can reproduce 7 times in a year and can give birth to 50 kits
on average, so they increase in number very quickly.
We plan to start from Sukkur. The space required to build a rabbitry is quite small thus lower
costs and since they reproduce very fast, there is always room for expansion.
Market for Rabbits is mainly large Hotels and Restaurant. So they make our primary customers
with that we also plan to open up an outlet.
Animal husbandry is usually differentiated depending on the type of livestock one keeps since
each animal has its own requirements. Rabbits have less requirements compared to other forms
of livestock in relation to capital, operating costs and maintenance yet they have quick returns
and high demand. There is great potential in this undertaking because of the increased life style
change of most families towards healthy living. This is evidenced by the preference to white
meat rather than red meat and increase in the demand for rabbit meat since it is the most
nutritious of the white meats. This is a trend that shows future growth of the industry and thus
increased future cash flows of early entrants to the industry. The opportunity is immense based of
the change in trends in the market coupled the gap in the supply of the product.
The financial aspect of this venture is favorable since there is a higher return on investment since
expansion/growth is fast and the payback period is short. Cash flows will start to be realized after
the first lot of kits mature which will be about six months. Expenses are minimal once the initial
structure is properly established. Proper care should be practiced thus less funds on treating the
bunnies white more on their feeding.

Vision Statement:
We aim to bestow people with an increased living standard and a healthy living by providing
highest percentages of proteins and nutrients in livestock.

Mission Statement:
The mission of Rabbiticious is to serve the people by providing the healthiest possible food by
nutritious white meat of rabbits. We aim to reach the national level with our cholesterol free
meat. We believe our efforts to sustainably raise foods and products is the key to healthy families
and a better planet. Using Organic, Natural and Permaculture Principles we strive to produce
delicious and healthy rabbits.

Project Submitted to Sir Nabeel Nisar

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Agribusiness History, Organizational Structure & Background:

Industry Analysis:
To meet the demands of growing population around the world, the micro livestock i.e. Rabbits
are a great source of food production. There is a growing opportunity for rabbit farming in our
country because of changing life styles of living and standards for survival. As Rabbit meat is
considered white meat so it contains more proteins, vitamins and calcium than other species of
animals. The rabbit meat is tasty and they grow very fast. Rabbits are long been enjoyed as food
by people around the world. Rabbit meat is sold all over the world in fresh and frozen forms and
enjoyed in different recipes. The annual meat production from rabbits stands at 200 million tons
by some estimates however largest rabbit meat producing countries are china, Russia, Italy,
France, Spain.
Rabbit farming is relatively easy with great scope and profitability. Pakistan Agriculture
Resource Council sources say farming provides an additional source of income.

Species of Rabbits:
There are several species found in our country among those the most famous are Dark Grey.
Others included Fox, Dutch, Chinchilla, NZ white, NZ black.

Rabbit Meat Quality:

It has been found through researches that the male rabbit meat is tastier than female and young
than adults. As age increase the lipid and cholesterol increase and proteins decrease.
As in Pakistan now a days there is rapid growing demand of healthy foods so there seems an
immense potential for growth of this rabbit farming industry. Moreover the changing trends and
the supply of this nutritious food will create demand in the market.

Pestle Analyses:
Pestle analysis is a powerful tool to visualize our external surroundings which enables us to
understand external factors. Those factors are

Political and legal factor:

Taxation law: If government imposes taxes on our business, we will get less revenue like other
forming industries are also paying the taxes.
Labor laws: We have to pay minimum salaries to the employees that is fixed by the government
in order to follow the government policies.
Political instability: Law and order situations also affects our business heavily due to the
strikes in market we may generate less revenue. Political instability can affect our business
negatively.

Project Submitted to Sir Nabeel Nisar

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Economic factors:
Inflation rate: Inflation rate in Pakistan is 23.3% if the inflation increases it may also increase
the price of our product and customer decision may be affected.
Economic growth rate: The economic growth rate accelerate is 7% that can also affect the
customer buying behavior.

Social and environmental factors:

Health consciousness: people are more health conscious now a days and we offer them healthy
meat that contains the quality and nutrition that creates the market for our product.
Environment concerns: we will be providing the quality product and we care the health of
customers and we are responsive towards nature and humans.

Technology forces:
New products: We are providing the rabbit meat that is new in market, we also focus on
changing the product according customers need. We also focus on the innovation of the product
in future.

Porters Five Force Model

1. Competition in the industry: As our business will open this industry, hence yet there is not
any competition in market. After new entrance there will be most probably price, quality and
branding war between competitors.
2. Potential of new entrants into industry: Entering in this venture is quite easy therefore there
is high threat for new entrance in market.
3. Power of suppliers: There are many supplier in different areas of Sindh for rabbit. They
charge as per Quality and size of rabbit. Having many supplier will reduce the bargaining power
of supplier and we will purchase at as low and cost high quality methodology to have less costly
business.
4. Power of customers: Being the first and only Rabbit meat Provider in Market, the customer
will be have very less bargaining power, Hence we would be having best opportunity to make
more profits.
5. Threat of substitute products: Because of Rabbit meat own quality and nutritions the rabbit
meat does not have any direct substitute though we are having indirect substitute including Beef,
chicken and fish.

Project Submitted to Sir Nabeel Nisar

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Product Mix:
Product:

Health trends around the world lead consumers to opt for healthy and nutritious food. In Sukkur
region Rabbiticious brings healthy & tasty rabbit meat and fur as a byproduct. This fresh, healthy
and full of nutrients meat will provide unique taste to the customers.
An outlet will directly sell the fresh meat to customers. Rabbiticious being only Rabbit meat
provider in the region will earn its brand name through its quality and packaging.
Price:
Looking at the people of Sukkur price sensitive, Penetration Strategy will allow customers to
have fresh and healthy rabbit meat at affordable cost.
Meat (1kg): Rs.320
Chicken, beef and mutton being indirect competitors to our business low price fresh and healthy
meat will give us an edge in market through penetration strategy.
Placement:
Our product is unique in market and not easily available at any retailer shop. An outlet at Sukkur
city will entertain the demand of consumers.
Outlet being at Sukkur will cover whole the city. And a daily home delivery will aim to cover
Khairpur and side areas of Sukkur as well.
Sales force will be there to promote and sell our product through personal selling mostly to the
restaurants.
Promotion:
To aware the people about the rabbit meat, taste and its variety of dishes first week
awareness campaign will be launched, providing the sample dishes free of cost.
Restaurants being our major consumers direct selling will be used to sell meat at different
restaurants.
Internet is todays major source to promote effectively and free of cost. Social media
marketing would also be there.

Project Submitted to Sir Nabeel Nisar

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The Market Served:

Rabbit farming is an undertaking of agriculture industry, the biggest sector of economy. Rabbit
farming is attractive for those who possess talent and passion for livestock farming. Its not
expensive venture rather require knowledge because of its nature. So, we five partners are going
to initiate Rabbit farming business in Sukkur for the first time. We will provide meat to
restaurants, industries and also open an outlet Rabbiticious to meet the demands of customers.
It is a partnership business.

Rabbits need less requirements as compared to other livestock in capital, operating costs and
maintenance. Rabbits are prolific in nature that is grow very fast thus creating high returns. Most
families now want healthy life style of living thus there is potential for increased demand of
rabbit meat because evidences provide the fact that it is preferred over red meat. Since its
considered the most nutritious of white meats. However, trend also shows future growth of the
industry thus more future cash flows. The opportunities based on the changing trends are thus
immense in the market.

Rabbit meat is considered nutritious because it contains less cholesterol, fat and sodium as
compared to other meats with high calcium, proteins, and vitamins. So Rabbit farming business
is great source to meet the food and protein demand.

People raise rabbits as pets but raising them commercially is a great source of income. Thus
rabbits are small sized animals so commercial way is easy. The method that we will apply in our
rabbit farming is cage method that is best for commercial business to raise maximum number of
rabbits keeping necessary facilities and space in the cage.

Project Submitted to Sir Nabeel Nisar

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Competitive Factors:
The market for rabbit meat is large but the problem is its supply is very low. Though the
increasing demand is showing that there is still growth in market making it profitable venture.
However Strength, weaknesses, opportunities and threats of business are below mentioned in
SWOT ANALYSIS CHART:

STRENGTH: WEAKNESS:

Infrastructure Limited flexibility in pricing

Low initial capital of starting Lack of familiarity and awareness
business among consumers about rabbit meat
Limited startup risk consumption.
Limited competition in Area
Very high gross margins that is with
less investment high returns
White meat for healthy life style.
Stable & trained staff for customer
service

OPPORTUNITIES: THREATS:

Continued expansion for future Competition such as with fish and

growth chicken sellers.
High potential in Rabbit meat due to Cultural and religious beliefs that
growing demand in white meat as a prejudice against consumption of rabbit
result of changing lifestyles and a meat.
higher purchasing power.
Increasing prices of other meat
products
Ability to open Restaurant
Opportunity to diversify rabbit
products
Existence of industries that make
rabbit industry products from its
skin.

Project Submitted to Sir Nabeel Nisar

 RABBITICIOUS- RABBIT FARMING BUSINESS

Marketing Goals and Objectives:

This is the process by which we shall communicate the value of our product to the customers for
the purpose of selling the product and increasing our profits after production is stable and stock
of rabbits is enough for commercial purpose. We will do for the first week of our business
Awareness Campaign that is selling direct meat to the customers free of cost and secondly we
will do direct selling to restaurants and finally of course marketing through most favorable
INTERNET promotional activities.

Operational Characteristics:
Initially we will purchase 200 rabbits out of which 100 will be for restaurants and outlet and
other will be for Breeding purpose so that they increase we earn profits out of it.
Breeding and feeding will be done by feeder however proper record will be managed by the
manager and for security purpose we have a security guard also.
We have outlet and warehouse on rent and land on lease.
For storage purpose warehouse will be used.

Management Features and Financial projections:

Project Economics:
Following table shows about the returns, payback period of project and net present value.
Description: Details
Internal rate of Return:
Payback Period:
Net Present Value:

Project Financing:
Following table shows the details about equity and loan for project financing.
Description Details
Total Equity 60% 1017272.4

Project Submitted to Sir Nabeel Nisar

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Bank loan 40% 678181.6
Markup: 12%
Tenure 5 years

Project Cost:
Following table shows the cost estimates and operations of the business.
Capital Investment Amount
Infrastructure(Cages Purchased) 140000
Outlet Equipment 150000
Pre Operational Costs 127454
Total Fixed Capital 417454
Inventory(Rabbits Purchased) 40000
Outlet Rent &wages 888000
Land Lease 250000
Cash 100000
Total Working Capital 1278000
Total Project Cost 1695454

Space Requirement:
Total space required for the rabbit farming is 300 sq. feet.
Description Cost per unit Area sq. feet Total cost
Construction of 14 10000 14 140000
cages
Outlet & warehouse 20000 240000
Rent
Land Lease 20833 250000
Total 630000

Machinery and Equipment:

Total machinery and equipment required for the rabbit farm and outlet are given below:
Description Amount
Outlet furniture and fixture 30000
Deep Freezers 50000
Total 80,000

Project Submitted to Sir Nabeel Nisar

 RABBITICIOUS- RABBIT FARMING BUSINESS

Human Resource Management:

Description No. of employees Monthly salary Total Monthly salary
Manager 1 12000 12000
Caretaker 1 12000 12000
Butcher 1 12000 12000
Security guard 1 10000 10000
Total 54000

Raw Material Required:

Total Unit Rate Rs./ Unit Amount in year
Rabbits 200 400 per pair 40,000
Total feed required per Rabbit 3217 60 193020
Vaccination / Medication 3217 2 6434
Direct Electricity Cost 3217 98000
Total 337454

Revenue Generation
Product Sales Price First year Total Sales Revenue
Rs. / kg production
Rabbit ( having 2 kg 320 3217 2,058,880
weight)
Total Sales Revenue 2,058,880

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RABBITICIOUS- RABBIT FARMING BUSINESS

Financial Analysis:
Profit & Loss Statement:

Year-1 Year-2 Year-3

Revenue 2,058,880
Cost of Goods Sold 9,85,454
Gross Profit 1073426
General administration & selling
expenses
Administration expense 125,000
Travelling & Comm. expense (phone, 35080
fax, etc.)
Office expenses (stationary, etc.) 2640
Outlet Rent 250000
Land Lease 250000
Miscellaneous expense 15000
Sub Total 677720
Operating Income 395706
Earnings Before Interest & Taxes 395706
Interest Expense 81380
Earning before Tax 314326
Tax 47148
Net Profit / Loss After Tax 267178

Project Submitted to Sir Nabeel Nisar

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Project Submitted to Sir Nabeel Nisar