Rabbit Farming project

 
PROPOSED RABBIT FARMING
BUSINESS PLAN.
 
 

 
 Table of Contents.

1.     Executive Summary

2.     General Business Description

3.     Business model

        Marketing

        Operation

        Finance 

EXECUTIVE SUMMARY

A rabbit is a burrowing animal which has long ears and a short tail. They are usually reared for their wool,
fur, meat and even urine/manure. Their meat is considered as white meat and better than other types of
meat. The rabbit meat is in high demand because:

 Cholesterol and fat level in rabbit meat is much lower than chicken, turkey, beef, and pork. For this
reason rabbit meat has been used and is suitable for special diets, such as those for heart disease
patients, diets for the aged, low sodium diets, weight reduction diets, etc.
 Rabbit meat has the highest in protein percentage.

They are usually disease free animals but negligence is the only factor that causes complications. Rabbits
will produce 6 pounds of meat on the same feed and water thus high returns are expected. 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.

The starting stock of rabbits can be bought from local breeders. Rabbits start to breed at the age of between
six and seven months and give birth after a gestation period of one month. A female rabbit can produce up
to 50 live rabbits per year at the average rate of 9 kits per birth.

Some of the already established local breeders include;

         The Rabbit Republic Ltd -Dagoretti,

         Murikar Rabbit Farm – Lower MatasiaNgong

         Rabbit Breeders Association of Kenya- Thika

The initial capital requirements are minimal because once you have a good structure in place, you can start
with a few mature rabbits which will reproduce fast and increase your stock. The initial capital budget can
be less than KES 50,000/- depending on the number of mature rabbits the farmer starts with.

Food for the rabbits is relatively cheap since vegetables can be acquired from local grocery stores while
Pellets go for about KES 2,000/- for a 50kg bag which will last the farmer for a whole cycle and a bale of
hay is KES 200/-.

The cost of acquiring a mature rabbit of any breed that is ready for breeding is between KES3,000/- and
KES 5,000. The price of mature rabbits is largely dependent on its weight and size.One hatch which can
house either pregnant mother & kits, one male or kits from one mother costs KES 3,600/- to build.

The market for rabbits and its meat is mainly in large hotels and restaurants. We must appreciate that
during the early stages of production, we cannot meet the demand of hotels as individuals. For this reason,
The Rabbit Republic LTD has a facility in which farmers can sell the rabbits to them so that they can meet
the demand. They purchase the rabbits in terms of kilograms and a kilogram goes for KES 400. The
condition for enjoying this stable and available market is to register with the company after doing a
learning package worth KES1, 000.

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.

GENERAL BUSINESS DESCRIPTION.

Rabbit farming is an undertaking in the agricultural industry which is the biggest sector of the economy.
Many youths in the country ignore the agricultural sector because of its hands on nature but its returns are
high due to its primary production nature.

 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 market for rabbit meat is relatively large but the supply is low which gives rise to a deficit meaning
higher profits can be realized. There is still growth in the market which means that demand is increasing
making it a profitable venture.

A male rabbit is called a buck, a female rabbit is called a doe and the children are known as kits. Rabbits
mature at the age of between 4 to 6 months depending on the breed at which they can start to reproduce. To
tell the difference between a male and a female rabbit, hold the rabbit in a craddling position on it back –
they will usually relax into a hypnotic state. Go to the genital area and separate the fur to reveal the vent
area under his tail where his genitals are located. Press down lightly just above the anus to make the area
protrude. If you see a vertical slit with pink folds of skin of either side, it is a female. On the male, you will
see a tiny pink or white tube-like organ without pink sides. The younger the rabbit, the harder it is to tell
the sex.

The common breeds of rabbits kept in kenya are Chinchilla, california white, newzealand white and
flemish giant. They have their own unique features as shown below;

Chinchilla

• Have brown to grey fur.

• Upstanding ears and brown eyes.

• The buck and the doe attain weight of 6-7 kgs at 5 months.

• Meat yield is 4-5 kgs.

Califonia white

• Have a dense white fur.

• Upstanding black ears and black nose.

• The buck and the doe attain weight of 3.0-3.5 kgs at 4-6 months.

• Meat yield is 2.0-2.3 kgs.

New Zealand white

• Have dense white fur. Upstanding ears and red/pink eyes.

• The buck and doe attain weight of 4.5 and 4.5-5.5 kgs respectively at 4 months.

• Meat yield is 2.1-2.3 kgs.

 Flemish giant

• Have brown fur.

• Upstanding brown white ears brown eyes.

• The buck and the doe attain weight of 5.0-5.5 kgs in 4-6 months.

• Meat yield is 2.5-3.0 kgs.

• Flemish giant may have various colours. Black, blue fawn,

light grey, sandy steel, grey and white.

Rabbits can be kept in any part of the country as long as they are housed properly and protected from
predators. There are various  ways one can construct the housing for rabbits depending on the size of the
stock, location of the project as well as materials available. A farmer can start with a rabbit pen with the
dimensions of 3ft on each side which is sufficient to house a doe and its kits or a single male. It is usually
constructed using locally available materials supplimented with others from the local store. More pens can
be constructed with the increase in stock because rabbits reproduce fast.

Some farmers use the deep litter system. Deep litter is an animal housing system, based on the repeated
spreading of straw or sawdust material in indoor booths. An initial layer of litter is spread for the animals to
use for bedding material and to defecate in, and as the litter is soiled, new layers of litter are continuously
added by the farmer. In this fashion, deep litter bedding can build up to depths of 1-2 meters.

Below is example of rabbit housing;

 rabbit pens

BUSINESS MODEL

The rabbit farming project as a business model is the plan in pllace to enable the project generate revenues
and make profits from operations. It revolves around marketing, operations and finance as the major piller
to ensure the success of the project.

         Marketing.

This is the process by which we shall communicate the value of our product to customers for the purpose
of selling the product and increasing our profits after production is stable and the stock of rabbits is enough
for commercial purpose. This is a critical area in the undertaking since it leads to maximisation of profits in
the long run.

The initial marketing strategy proposed is that we join the cooperative society offerd by rabbit republic
LTD so that we have the initial market as we continue in the breeding and expansion of the rabbit stock.
This will give us am readily available market in the early stages of the business.
 Encourage more youths to undertake the project so as to have enough stock for mass commercial use and
apply for supply tenders in hotels.

         Operations

The breeding will start in any of the members residence which will be financed by the group in terms of
building materials, equipments, initial stock and feeds.

Breeding and care of the rabbits will be done by the said member who will maintain proper records of the
operations.

Assuming we start with 5 mothers and two males the operation structure will be as follows;

                     

2
1 2 3 4 5 6 7 8
Males
 

                    9

    32 31 30 29 28 10
  27  

11
      21 22 23 24 25 26  
Water
  Tank
         
   
12

 2
20 19 18 17 16 15 14 13
Males
 
                     
  Notes                  
Dimensions of the Hutches L 2.5 X H 2.5x W
  2.5ft cubed        
  Two levels of hutches with 1.5 ft ground clearance and 1 ft between the two levels  
  Outside walls 32 gauge iron sheets or build walls of appropriate materials in the prevailing zone
  Roofing 30 gauge sheets            
  Floor and partitioning of hutches weldmesh  (Medium gauge) and 1/2 inch chicken mesh heavy
 gauge)
Floor
  screed                 
  Timber 2x2inches              
The weaning done after one month. The rabbits are separated from
  their mother    
At 3 months the male rabbits are separated from the female rabbits and the male are
  castrated  
At five months both male and female are ready
  to be sold        
Isolation Area is where sick animals shal be kept for observation and
treatment

       

         Finance

This involves all the cost, expenses and revenues incurred in the first 12 months of the project. Assuming
we start with five females and two males, the financial implication will be as follows;

1.       Initial capital

This includes costs of construction, purchase of initial stock, purchase of equipments and feeds.

Table of hatch construction costs for five mothers as the initial stock.

        Unit  Materials  Bqs for EstTptal

S_n
o Item description Unit Qty Price  0ne Hutch                   5 Cost in kshs
1 Timber 2×2 ft 540 24            45.00           225.0             16,200
2 Iron Sheet 30g 3m No 3 1000               0.25               1.3               3,750
Translucent sheets
3 2m No 6 800               0.50               2.5               6,000
Weld Mesh
4 (medium gauge) No 6 650               0.50               2.5               4,875
5 Chicken Wire No 1 5000               0.08               0.4               6,250
6 Plywood No 2 600               0.17               0.8               1,500
                 
7 Hinges No 24 24               2.00             10.0 720
Plastic Gutter pipe
8 2inch No 1 800               0.08               0.4               1,000
                 
9 Nails 1″ Kg 1 180               0.08               0.4 225
                 
10 Nails 1.5″ Kg 2 180               0.17               0.8 450
                  
11 Nails 2″ Kg 2 150               0.17               0.8 375
                 
12 Nails 3″ kg 3 150               0.25               1.3 563
                 
13 Nails 4″ Kg 3 150               0.25               1.3 563
                 
14 Roofing nails Kg 1 180               0.08               0.4 225
15 Labour No 12 600               1.00               5.0                9,000
Estimated Cost in                
  Kshs for   5 rabbits                    –               51,695

After construction of the hatch, the rabbits will be purchased at a maximum amount of KES 5,000.

 2 males@ 5,000 = 10,000

5 females@5,000= 25,000

                       Total = 35,000

Total Initial capital for five mothers= 35,000+51,695= 86,695

NB// the cost of construction includes that of hatches that will accommodate the new rabbits after breeding.

2.       Revenues.

These are forecasted incomes after a production period of 12months for 5 mothers.

The production chart for five mothers over a period of 12 months

 
Price
per
Av. No No for Av Kg  Total  Total
No of Size Total for sale Weigh Live Value Value
Month Mother of Litte Sale Year t of weigh shs shs year
s s litter r 1 2-5 rabbit t year 1 2 to 5
Month
1 5 6 0 0 30 4 400  –    48,000
Month
2 5 6 30 0          
Month
3 5 6 0 0 30 4 400  –    48,000
Month
4 5 6 30 0          
 Month
5 5 6 0 30 30 4 400  48,000  48,000
Month
6 5 6 30 0          
Month
7 5 6 0 30 30 4 400  48,000  48,000
Month
8 5 6 30 0          
Month
9 5 6 0 30 30 4 400  48,000  48,000
Month
10 5 6 30 0          
Month
11 5 6 0 30 30 4 400  48,000  48,000
Month
12 5 6 30 0   4      
 192,00
Total     180 120 180     0  288,000

3.       Other expenses

These are the day to day operating expenses that will be incurred in running the project. They include
labour costs, vetinary expenses, feeds, and maintenance/ miscelenious costs.

Labor costs @ KES 1,000 per month- 12,000

Vetinary/ consultancy services – 10,000

Pellet Feeds for mothers @ – 11,400 (150g per rabbit per day)

Maintenance cost at – 10,000

TOTAL EXPENSES = KES 43,400

 FORECASTED FINANCIAL POSITION

IN THE FIRST 12 MONTHS.

KES KES
Revenues 288,000
less;
Initial Capital 86,695
operating expenses 43,400 130,095
157,905
 SECOND 12 MONTHS WITH THE SAME
STOCK
Revenues 288,000
less;
operating expenses 43,400
244,600

This shows growth in profits since the initial capital is incurred once unless there is expansion.