Poultry House Project NT

Projected Financial Statement

Item Assumption
Capital expenditure R1,067,000
Working capital requirements R578,000
Working days per month 26 days
Debtors collection period 30 days
Creditors payment period 45 days
Revenue growth 10%
inflation rate 6%
Average contribution margin 45.80%
Stock turnover rate 7 days
Farm capacity 2,500 layers
Mortality rate 0.15% per week
280 eggs per annum are produced by each layer bird;
Efficiency result per layer bird approximately 23 eggs are produced by each layer bird per
month
Rate of lay 2 eggs every 3 days per layer bird
Total eggs laid per annum 54,825 dozens
Effective period of laying = 52 weeks
Laying period Birds will be hosted at 18 weeks of age and molted at 70 weeks
of age
Laying period feed per bird 40 - 50 Kg per layer bird
Feed consumption 120g - 150g per layer bird
Feed required to produce a dozen eggs 1.75 + - 0.19 kg feed
Weight of feed per bag per Kg 50Kg
Average selling price of eggs (per dozen) R15.00

Average selling price of eggs per tray (30 eggs) R38.00

Selling price = R25 per 25Kg bag

Sale of manure and litters
Frequency = twice per year
§  Age of sale = 70 - 110 weeks of age
Sale of unproductive aged layer birds (fowl) §  Average weight = 1.8 Kg
§  Average farm price = R20
 Financial Plan

Projected Income Statement

Sales Year 1 Year 2 Year 3 Year 4
Sale of Eggs 949,100 1,044,010 1,148,411 1,263,252

Sale of Manure for Fertilizer 15,100 16,610 18,271 20,098

Sale of aged unproductive layers 20,000 22,000 24,200 26,620

Total Sales 984,200 1,082,620 1,190,882 1,309,970

Cost of Goods Sold

Material 504,778 555,256 610,782 671,860
Labour 47,455 52,201 57,421 63,163

Total Variable COGS 552,233 607,457 668,203 735,023

Total Cost of Goods Sold 552,233 607,457 668,203 735,023

Gross Profit 431,967 475,163 522,679 574,947

Operating Expenses

Sales & Marketing 6,000

Research & Development -

G & A (without Depreciation) 171,360 3,780 3,968 4,167

Depreciation 254,448 - - -
176,678 185,516 194,793

Total Operating Expenses 431,808 254,452 254,452 254,450

Income From Operations 159 434,910 443,936 453,410

Income before Taxes 159 40,253 78,743 121,537

Taxes on Income 45 11,271 22,048 34,030

Net Income After Taxes 114 28,982 56,695 87,507

 Year 5
1,389,577

22,108

29,282
1,440,967

739,045
69,479

808,524

808,524

632,443

4,376

-
204,534

254,450

463,360

169,083

47,343

121,740
 Budgets

The following budget is based on the assumption that birds are housed at 18
weeks of age and sold at 70 - 110 weeks of age (52 weeks of production)

Item  Quality Unit Price Total

Receipts
Jumbo and extra large 23,606 Dozen 18 424,908
Large 27,376 Dozen 15 410,640
Medium 11,308 Dozen 12 135,696
Receipts from eggs 62,291 - - 971,244
Fowl sold: 2300 @ 1.8 Kg 4,140 Kg 20 82,800
Total Receipts 1,054,044
Variable costs
Pullets 2,500 Bird 60 150,000

Feed 2,500 50 Kg/ bag 200 500,000

Advertising 2,400

Utilities - electricity and water 6,000

Repairs and maintenance 1,025

Egg cartoning and packaging 46,488

Total variable costs 705,913

Return above variable costs 348,131

Fixed costs
Labor 86,400
Insurance 25,000
Egg cooler 15,000 10 yr 2,250
Building (related costs) 39,600 10 yr 5,940
Equipment (related costs) 24,312 10 yr 3,647
Total fixed costs 123,237
Total costs 829,150
Net returns 224,894