This project report has been worked out subject to the following conditions:

1.Hybrid Broiler Chicks will be purchased from commercial hatcheries for every batch.

2. Sale price of finisher birds will change in accordance with change in purchase price of feed &
chick.

3.Bio-security measures must be strictly adopted.

4.The farm must be managed by the entrepreneur on scientific lines.

5.Cost of labour has not been taken into consideration since full time labour is not required for
the small unit. Family labour will be utilized for maintance of the farm.

6. The scheme is a broad guideline and is likely to vary as per the change in price/cost of various
specified items.

Government subsidy for this type project– Back ended capital subsidy is available for this
project subject to a ceiling of Rs 112,000/- for a unit of 2000 birds for APL farmers. SC/ST/BPL
farmers , people in notified difficult areas, farmers from NEStates including Sikkim can avail
33.33% subsidy with ceiling of Rs 150400/- per two thousand birds under
scheme PVCF(EDEG) (Notified Difficult Areas like Leh, Ladakh, Kargil areas for, areas above
11,000 ft. height from mean sea level as well as difficult islands.)

Farmer must check the following points before starting a Broiler farm.

1.Availability of hybrid broiler chicks in local market

2.Nearness of the Farm to Veterinary Hospital, Animal disease diagnostic laboratory

3.Marketing facility & demand of Broiler in local market

4.Availability of broiler feed & medicine in their locality.

Housing for broiler chicken

Floor – One square feet floor space per bird is required for broiler chicken. The floor of the
poultry house should be concrete cemented, strong & rodent proof ,and have slope towards door.
Plinth should be 2ft. higher than ground.

Walls-lengthwise wall may be only one foot high, brick wall on sides,4ft wire netting above
brick wall should be supported with angle iron. End wall of poultry house should be made of
bricks. Maximum breadth of poultry house should be 27 feet. There should be partition in every
500 squire feet.
 Roof – Roof of the poultry house may be of asbestos or tile. Low cost roofing material
can be used to reduced cost of construction. It should 12-ft. high at the center and 6-8ft. high on
the side wall with 3ft extension of roof beyond wall to prevent rain water from entering poultry
house.

Techno-Economic Norms

PARAMETERS VALUE

System of rearing Deep Litter system

Batch size +5% extra

52 days(45 days rearing +7days (cleaning

Batch interval
period)

Mortality of birds 5%

Cycle size 2000

Cost of day old chick Rs.25

Cost of kg of feed Rs.28.00

Cost of equipments( waterers feeders etc.) Rs.15/bird

Cost of insurance medicine vaccine etc. Rs.4/bird/year

Insurance per bird 0.5

Insurance of building and equipments 0.001

No of batches/year introduced first year 6

No of batches /year(sold) 6

No of batch introduced 2-5 years 7

No of batch sold 2-6 years 7

Cost of kg of live broiler Rs.78

Feed conversion ratio FCR 1.68 to 1.72

Average wt. of bird at the time of sale 2kg

Feed requirement to attain 1.8kg body weight 3.5kg

Rearing period 45 days

Cleaning period One week

Interest rate 12%/year

Repayment period 6 years

ECONOMICS OF BROILER FARMING TO PRODUCE 2000 BROILER POULTRY PER
CYCLE
Capital cost (Amount in Rs.)

Construction of Brooder cum grower house one

300000
Sq.ft/bird for 2000 birds @Rs.150/sq.ft

Equipments for 2000 birds @Rs.15/bird 30000

Electrification & electrical installation 25000

Feed store 150sq.ft@200/sq.ft 30000

TOTAL CAPITAL COST 365000

Working Capital

Cost of chicks 2060@ RS.25/chick (5%

51500
extra for mortality 2% free fro hatchery )

Cost of concentrate feed@3.5kg/bird

196000
for20,00 birds @28/kg for first bath

Insurance For First Batch Bird 10000

Insurance of shed building and equipment 3650

Misc, expenditure i.e. electricity vaccine

medicine including veterinary aid 8000
@Rs4/bird/batch

CONTINGENCY 15850

Total working capital 285000

Total project cost 650000

 Margin money 15% of project cost 162500

Bank loan 487500

Calculation of BCR and IRR

YEAR 1 2 3 4 5 6

Capital
365000
Costs

Recurring
1518650 1771150 1771150 1771150 1771150 1771150
Costs

Total Costs 1883650 1771150 1771150 1771150 1771150 1771150

Benefit 1764800 2058200 2058200 2058200 2058200 2195700

Net Benefit -118850 287050 287050 287050 287050 424550

 Monthly
S.No Interest Principal Balance
Installment

0 516750

1 10103 5168 4935 511815

2 10103 5118 4984 506831

3 10103 5068 5034 501796

4 10103 5018 5085 496712

5 10103 4967 5135 491576

6 10103 4916 5187 486389

7 10103 4864 5239 481151

8 10103 4812 5291 475860

9 10103 4759 5344 470516

10 10103 4705 5397 465118

11 10103 4651 5451 459667

12 10103 4597 5506 454161

13 10103 4542 5561 448600

14 10103 4486 5617 442984

15 10103 4430 5673 437311

16 10103 4373 5729 431581

17 10103 4316 5787 425795

18 10103 4258 5845 419950

19 10103 4200 5903 414047

20 10103 4140 5962 408085

21 10103 4081 6022 402063

22 10103 4021 6082 395981

23 10103 3960 6143 389838

24 10103 3898 6204 383634

25 10103 3836 6266 377368

26 10103 3774 6329 371039

27 10103 3710 6392 364647

28 10103 3646 6456 358191

29 10103 3582 6521 351670

30 10103 3517 6586 345084

31 10103 3451 6652 338433

32 10103 3384 6718 331714

33 10103 3317 6785 324929

34 10103 3249 6853 318076

35 10103 3181 6922 311154

36 10103 3112 6991 304163

37 10103 3042 7061 297102

38 10103 2971 7132 289970

39 10103 2900 7203 282768

40 10103 2828 7275 275493

41 10103 2755 7348 268145

42 10103 2681 7421 260724

43 10103 2607 7495 253229

44 10103 2532 7570 245658

45 10103 2457 7646 238012

46 10103 2380 7722 230290

47 10103 2303 7800 222490

48 10103 2225 7878 214613

49 10103 2146 7956 206656

50 10103 2067 8036 198620

51 10103 1986 8116 190504

52 10103 1905 8198 182306

53 10103 1823 8279 174027

54 10103 1740 8362 165665

55 10103 1657 8446 157219

56 10103 1572 8530 148688

57 10103 1487 8616 140073

58 10103 1401 8702 131371

59 10103 1314 8789 122582

60 10103 1226 8877 113705

61 10103 1137 8966 104740

62 10103 1047 9055 95684

63 10103 957 9146 86539

64 10103 865 9237 77302

65 10103 773 9330 67972

66 10103 680 9423 58549

67 10103 585 9517 49032

68 10103 490 9612 39420

69 10103 394 9708 29711

70 10103 297 9805 19906

71 10103 199 9904 10003

72 10103 100 10003 0