Agro Business Poultry Business Plan

Business Plan
AgroBusiness Poultry Ltd

Providing quality chickens and egg for the nation
This business plan is intended solely for informational purposes to assist in determining if you with a due-
diligence investigation of this project. The information contained herein is believed to be reliable, but the
management team makes no representations or warranties with respect to this information. The financial
projections that are part of this plan represent estimates based on extensive research and on assumptions
considered reasonable, but they are of course not guaranteed. The contents of this plan are confidential
and are not to be reproduced with express written consent.
CONTACT INFORMATION :
Company: AgroBusiness Poultry
Address: 124, Egbeda Road, Egbeda, Lagos
Phone: 07031542324
Email: agrobusiness101@gmail.com
Website: www.agrobusiness.biz
Table of Contents
Table of Contents
1.0 Executive Summary.....................................................................................................................1
1.1 Objectives....................................................................................................................................2
1.2 Mission...........................................................................................................................................2
1.3 Keys to Success.........................................................................................................................3
2.0 Company Summary......................................................................................................................3
2.1 Company History.......................................................................................................................3
2.2 Company Ownership................................................................................................................3
2.3 Location and facilities..............................................................................................................4
2.4 Start-Up Summary...................................................................................................................4
2.4.1 Required Funds..................................................................................................................5
3.0 Product..............................................................................................................................................6
3.1 Competitive Comparison........................................................................................................6
4.0 Market Analysis Summary.........................................................................................................6
4.1 Market Segmentation..............................................................................................................7
4.2 Target Market Segment Analysis........................................................................................7
4.3 Industry Analysis.......................................................................................................................7
4.4 Challenges Facing the Poultry Industry............................................................................9
4.4 SWOT Analysis...........................................................................................................................9
4.4 External Environmental Analysis.......................................................................................10
4.5 Competition and Buying Patterns.....................................................................................10
5.0 Operation plan/Production Summary..................................................................................11
5.1 Production plan........................................................................................................................11
5.2 Production costs......................................................................................................................11
5.3 Production process.................................................................................................................12
5.4 Production systems................................................................................................................13
a) Battery Cage System...........................................................................................................13
b) Deep litter system.................................................................................................................13
6.0 Sales Strategy..............................................................................................................................13
6.1 Sales Forecast..........................................................................................................................14
6.1.1 Table: Sales Forecast....................................................................................................14
Table: Projected Sales for Eggs............................................................................................15
Table: Projected Sales Chicken.............................................................................................15
Sales Projections for Waste/fertilizer..................................................................................16
7.0 Management Summary.............................................................................................................16
7.1 Organizational Structure......................................................................................................16
7.2 Management Team.................................................................................................................16
7.3 Personnel Plan..........................................................................................................................17
8.0 Risk Assessment..........................................................................................................................17
8.1 Contingency plans...................................................................................................................18
9.0 Financial Plan................................................................................................................................19
9.1 Breakeven Analysis................................................................................................................19
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Table of Contents
9.2 Projected Profit and Loss.....................................................................................................19

Table: Profit and Loss................................................................................................................20
9.3 Projected Cash Flow..............................................................................................................20
Table: Projected Cash Flow Statement – Year one.......................................................21
Table: Projected Cash Flow Statement – Year Two......................................................21
Table: Projected Cash Flow Statement – Year Three...................................................22
9.4 Projected Balance Sheet......................................................................................................23
Table: Projected Balance Sheet – Year One.....................................................................23
Table: Projected Balance Sheet – Year Two.....................................................................24
Table: Projected Balance Sheet – Year Three.................................................................25
9.5 Projected Income Statements............................................................................................26
Table: Projected Income Statement – Year Two............................................................26
Table: Projected Income Statement – Year Three........................................................26
9.6 Fixed Operating Expenses.......................................................................................................28
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1.0 Executive Summary
AgroBusiness poultry farm is a startup poultry farm that meets an unsatiated need for quality
chickens and eggs. Their products are positioned at the high end of the market in terms of both
quality and price. AgroBusiness Poultry Ltd has being in business for two years now and has
grown in popularity. What was once a business targeting solely the Papalanto community has
grown into a business that has far broader appeal and customer base in Lagos and
neighbouring states. AgroBusiness Poultry Ltd is located in Papalanto, Ogun State.
AgroBusiness Poultry Ltd's objectives are to develop a product-based company whose goal is to
exceed customer's expectations, increase production efficiency by 10% a year, and lastly, and
develop a sustainable poultry farm business, able to survive off their cash flow.
Products
Currently, AgroBusiness Poultry Ltd has three main line of products. There are eggs, chickens
and waste/poultry litters. AgroBusiness Poultry Ltd’s chickens are well-processed and packaged,
hygienic and of great quality. Due to high demand, most customers order the unprocessed
chicken to resell or process by themselves to meet their requirements. AgroBusiness Poultry
Ltd’s eggs are produced to meet standard organization of Nigeria and international standard.
Our eggs are hygienic, rich in protein and of high quality. The last product is poultry
litter/waste.
The Market
Nigeria presently consumes 1.5 million MT of frozen chicken annually and more than 60% of
the chicken consumed in Nigeria are imported.
According to The Poultry Association of Nigeria (PAN), 1.2 million metric tons (MT) of frozen
chicken valued at N660 billion was imported into the country in 2014 alone and this was four
times higher than what was produced locally, and exceeding the current industry capacity.
The risks inherent in consumption of products that are not thoroughly scrutinised are enormous
and it is a well-known fact that locally farmed poultry meat is sold without preservation, while
the smuggled ones are preserved with hazardous chemicals, adding that formalin load in all
smuggled poultry products ranges from 42.9 to 63.3ml/kg.
AgroBusiness Poultry Ltd has targeted three main customer groups to sell their products to. The
first group is wholesale distributors. This segment has a 100% growth rate with 12 potential
distributors. The second segment is Egg depots segment is growing at 85% and there currently
are 53 potential customers. The third group is wholesale restaurants and hotel. This segment
has a 100% growth rate with 21 potential customers.
Competitive Edge
AgroBusiness Poultry Ltd has two competitive edges that will help them maintain strong growth
rates, increasing their market penetration. The first edge is quality. AgroBusiness Poultry prides
themselves on the high quality chickens and eggs. Products that do not meet AgroBusiness
Poultry high standards of quality are rejected as imperfects. AgroBusiness's second competitive
edge is their affordability. Affordable will be the driving force behind generating interest and
sales.
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Management
AgroBusiness Poultry Ltd is led by AgroBusiness Etim. AgroBusiness initially got his start in
growing while working at a Agric Integrated Farm. After university, AgroBusiness went to work
for Obansanjo Farm. This experience is what solidified AgroBusiness's desire to continue
working in an agricultural capacity. Soon after his experience at the OBJ farm he decided to
enroll in Pan African University for entrepreneurship program. AgroBusiness's entrepreneurship
program provided him with requisite detail and skills to develop his own poultry farm and with
the needed managerial skills.
The plan is based on more than 5 years of experience in poultry business. It is highly focused
and promises to follow a path of prosperity for its owners and staff. The projections contained
herein are authentic and will be used as the budget for the business. AgroBusiness farm will
show a profit within 12 months, and will increase sales and profits each year thereafter.
The marketing research and tailored marketing strategy described in this business plan will
result in after-tax profits of N10,700,516 in Year one and increasing to nearly N25,036,617 in
after-tax profits within three years.
To achieve these goals, AgroBusiness Poultry needs funding for two different phases of
expansion. We are currently seeking a total fund of 15,000,000. N10,000,000 for poultry farm
and N5,000,000 for processing and packaging. This loan will enable us to acquire new land and
build structure, purchase processing equipment, purchase a delivery truck, a key element of
our new sales and targets to meet demands.
1.1 Objectives
We have identified the following objectives to pursue in the upcoming years:

1. Become a major player in the poultry industry
2. Becoming the "Best and most hygienic poultry producer in the area" complying by the
national standards for food and drugs. Turn in profits from the first six weeks of operations.
Maintain 50% gross margin ratio. Winning the hearts and tastes of our beloved consumers
and establishing a brand image of the company through heavy marketing campaigns in the
first one year
3. Reach profitability within 24 months from when we receive fund.
4. Expand our customer base through direct referrals and aggressive direct sales.
5. Expand our farm to meet the growing sales market.
1.2 Mission
Our mission is to meet customers’ increasing demands for a more quality poultry products by
providing them with a clean, healthy and nutrients poultry products. We will offer all of our
customers the direct personal attention they deserve. Our commitment to customer service and
satisfaction assures us that our customers are 100% satisfied with our products and services.
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1.3 Keys to Success
The key factors to making this venture a success are:
1. Finance: Fund is one of the major success factors here. Without enough fund we can do
much.
2. Maintaining our core-values to only provide a more healthy and quality poultry products
produced by competitors
3. Expertise is very key to successfully manage the business. Owner has well over 5 years of
experience
4. Maintain low operating costs.
5. Keep the supply chain to a minimum number of steps to ensure convenience for our target
market.
6. Product freshness and quality.
7. Constant research of industry to keep knowledgeable of market needs.
2.0 Company Summary
The company is a startup that is located in Papalanto, Ogun State. The farm is situated in an
area which is not exposed to extreme climatic conditions. Especially during summers, the
temperatures soar & affect the profitability due to high mortality rates.
The company is registered with corporate affairs commission of Nigeria as AGROBUSINESS

POULTRY LTD with registration number: RC:136599.
The company offers 4 different products namely live chicken, eggs, processes chicken and
waste products.
There is access road to the farm which will aid our marketing.
The team has spent, in total, hundreds of man hours in the research and study of the business
and the method of rearing high quality eggs, healthy birds and chickens that will bring high
ROI.
To date we have studied and developed a fully functional method to ensure lowest mortality
rate and healthy birds.
As a team largely composed of personnel who are experienced and educated in the field,
together we form a powerful unit.
2.1 Company History

AgroBusiness's has been hindered only by the lack of working capital it had in its initial stages
of setup and operation. Sales are growing steadily, with the cost of goods sold consistently
decreasing. But to make significant headway in this area, additional capital is needed to
purchase stocks and processing in larger volumes, thereby reducing the costs of goods sold by
32% overall.
2.2 Company Ownership
The company is 100% own by AgroBusiness Etim.
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2.3 Location and facilities
The business is located at 12, AgroBusiness Street, Papalanto, Ogun State
We are trading from this spot because is it a great place to reach our target market. We think
the population base is large enough for our business and it has a stable economic base that
promotes a healthy environment for the poultry. Also we think it is a spot that could tap a
healthy workforce. We also considered pedestrian traffic and we think a large percentage of
them are potential customers. We plan on having a good parking space and sufficient security
in our working site to create a safe environment for the customers. The location will help us
reach customers in Lagos, Oyo State and other neighbouring states
Our facilities include a broiler grow out facility, a layer grow out facility, a hatchery unit and
table eggs production unit. The hatchery unit is where the fertile eggs will be incubated to
produce day old chicks. The incubation will be done automatically. The production cycle will be
made up of 50% broilers and 50% layers. It will include the setter incubator and the hatchers
incubator. The broilers grow out facility will be a deep litter system and the layer grow out
facility will be a battery cage system. Both systems require adequate housing and feeding and
drinking equipments. The eggs produced in the table eggs production unit are infertile and the
amount produced depends on the layer chickens.
2.4 Start-Up Summary
This section of the plan shows projected startup costs prior to our expanding.
Start-up expenses for AgroBusiness Poultry Ltd include initial insurance payments covering
both general liability and product liability, pre-launch marketing to cover flyers, a direct mail
campaign, and advertisements in local papers, the development of a website for customer
interaction, and the normal legal expenses for consultation and permitting. Other current
assets include office and store furniture, shelving, a computer, phone system, and tools. Long-
term assets include the land, building, equipment, incubator, hatchery, delivery van.
We are hoping to get grant/loan of N15,00,000 from xxx and the owner, AgroBusiness Etim
will contribute N500,000. From our analysis, we are looking at a total startup budget of N15,
416,000. Details are provided in the tables below.
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2.4.1 Required Funds
Required Start-Up Funds Amount Totals Depreciation Notes

Fixed Assets
Farm-Land ₦ 600,000.00
Buildings 1,500,000 20.00 years
Leasehold Improvements - 7.00 years
Equipment 3,895,000 7.00 years
Furniture and Fixtures 350,000 5.00 years
Vehicles 2,500,000 5.00 years
Other Fixed Assets 500,000 5.00 years
Total Fixed Assets 9,345,000
Operating Capital
Pre-Opening Salaries and Wages 1,555,000
Prepaid Insurance Premiums 250,000
Inventory 100,000
Legal and Accounting Fees 100,000
Rent Deposits -
Utility Deposits 100,000
Supplies 300,000
Advertising and Promotions 500,000
Licenses 350,000
Other Initial Start-Up Costs 400,000
Working Capital (Cash On Hand) 2,500,000
Total Operating Capital 6,155,000
Total Required Funds ₦ 15,500,000.00
Sources of Funding Amount Totals Loan Rate Term in Months Monthly Payments
Owner's Equity 3.30% 500,000
Outside Investors(YEAP) 96.70% 15,000,000
Additional Loans or Debt
Commercial Loan 0.00% (1,680,000) 0.00% 84.00 ₦ 20,000.00
Commercial Mortgage 0.00% 1,680,000 0.00% 240.00 ₦ 7,000.00
Credit Card Debt 0.00% - 0.00% 60.00 ₦ -
Vehicle Loans 0.00% - 0.00% 48.00 ₦ -
Other Bank Debt 0.00% - 0.00% 36.00 ₦ -
Total Sources of Funding 100.00% ₦ 15,500,000.00 ₦ 27,000.00
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3.0 Product
We will offer our customers quality poultry products. Are products are:
i. Breeding and Selling of live birds: we will breed and offer for sell matured birds. Broiler
and old layers.
ii. Processed Chicken: We will process and package chicken for the local market
iii. Eggs: We will sell 30 eggs in a crate. Egg is a good source of low-cost high-quality
protein, providing 6.3 grams of protein (13% of the daily value for protein) in one egg
for a caloric cost of only 68 calories.
iv. Waste/ litter as a by-product
We will offer for sell of high quality and well-packaged products to resellers/wholesale and
companies in Nigeria.
Our distinctive unique selling point of providing high quality birds and chicken and egg that is
well-processed and packaged that will be approved by NAFDAC and endorsed by Standard
Organization of Nigeria and a product barcode at affordable price compare to our competitors
quality and methods of farming and production will be sufficient enough to secure our company
survival in a competitive market.
We offer all of the above great products, while evaluating the desires and needs by our
customers for improvement and other products.
3.1 Competitive Comparison
While quality and delivery are important factors to our potential clients, price is most often the
determining factor in a buying decision. Good-quality eggs and healthy chickens that is
affordable will be most competitive and achieve a significant market share. These factors have
helped to determine the business parameters.
4.0 Market Analysis Summary
The Nigerian poultry industry as at 2013 was estimated at ₦80 billion ($600 million) and is
comprised of approximately 165 million birds, which produced 650,000 MT of eggs and 290,000
MT of poultry meat in 2013. From a market size perspective, Nigeria’s egg production is the
largest in Africa (South Africa is the next largest at 540,000 MT of eggs) and it has the 2 nd
largest chicken population after South Africa’s 200 million birds.
We are a highly technical niche player offering strong product that is in great demand. We have
identified that our target market are the brokers and distributors who have established good
presence and channels to get our products to final consumers.
We will market our products to the following groups: distributors, eggs depots, fast food
outlets, hotels and other groups.
Secondly, the various market women/men in Ogun, Lagos and the neighbouring states will
patronize us. Hotels, restaurants and distributors in Lagos, Ogun, and Oyo can easily locate us
and buy the products. This will thereby reduce the cost of delivery. We will increase the
production and sales of products in its environs. This will result in increase in sales and
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profitability. The cost of production will be low because most of the staff will be recruited from
the community.
4.1 Market Segmentation
We have identified the following segments which make up our target market:
1. Distributors and Wholesalers: Since our major sales objective is business to business, we
will sell more to wholesalers and distributors who will then sell to the final consumers.
2. Egg Depots: The market for eggs is very high and many eggs depots and distributors are
ready to pick it up. From our analysis, many will come and book in advance.
3. Fast Food Outlets: Most of the fast food outlets in our target region will buy from us. Will
establish an excellent relationship with them.
4. Hotels/restaurants/Event Planners: This group of target market will also buy from us.
5.
4.2 Target Market Segment Analysis

Distributors and Wholesalers: This is potentially our greatest market opportunity. Distributors
and Wholesalers buy in bulk and sell to small stores, supermarket, final consumers, for home
use etc. There is a growing demand and market in terms of use. Therefore it seems logical to
exploit this opportunity and devote the majority of our time and resources to this segment.
From our analysis and statistics, there made up more than 55% of sales. This market will
potentially be the basis of our growth.
Egg Depots: The demand for healthy eggs is very high. Well over 650,000 MT of eggs consume
and from our research and the past statistics, customers book ahead and pick up immediately
they are available.
Fast Food Outlets/Food companies: We will also target fast food outlets and companies that in
and around Ogun and its environs. Hotels like Monalisa Hotels & Suites, Matho Crystal Hotel,
food companies like Genesis Food Nigeria Limited and Pepperoni Foods Ltd. Egg can be used in
a wide range of food products such as cake, bread, biscuits and other confectioneries.
4.3 Industry Analysis

The Nigerian poultry industry is estimated at ₦80 billion ($600 million) and is comprised of
approximately 165 million birds, which produced 650,000 MT of eggs and 290,000 MT of
poultry meat in 2013. From a market size perspective, Nigeria’s egg production is the largest
in Africa (South Africa is the next largest at 540,000MT of eggs) and it has the 2nd largest
chicken population after South Africa’s 200 million birds.
Chicken importation (with the exception of day-old-chicks) was banned by Nigeria in 2003,
which spurred growth in domestic poultry production. Statistics from Eurostat, however,
highlight that between 2009 and 2011 over 3 million MT worth of poultry products were
imported into the Republic of Benin, with the preponderance of these products ending up in the
Nigerian market. If this is reflected in overall assumptions, estimated poultry meat consumption
in Nigeria is approximately 1.2 million MT.
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The Nigerian poultry sector is extremely fragmented with most of the chicken raised in
‘backyards’ or on poultry farms with less than 1,000 birds. However, there are a number of
large commercial players in the sector most of whom are located in south-western Nigeria, in
close proximity to Lagos and its large market of 17.5 million people.
Three factors have been primarily responsible for the remarkable development of the poultry
industry. The first factor has been the demands for eggs and poultry meat as articles of diet.
The second factor has been that poultry rising has been relatively profitable enterprise when
compared with most other agriculture enterprises. The final reason is the roles being played by
the poultry association of Nigerian umbrella body all poultry farmers in Nigerian. High cost of
inputs, power outages, diseases, low purchasing power of consumers are the major hindrances
to the rapid development of chicken industry. Chicken rising is a wide spread enterprise
engaging the attention of millions of Nigerians.
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4.4 Challenges Facing the Poultry Industry
Poultry farming has some challenges that need to be attended to with vigor. Below are some of the
common challenges that are faced by poultry farmers:
Death of chickens: In poultry, one or many chickens usually die because of their fragile nature and
the weather they are living in. Some factors such as heat and overcrowding causing that death can be
controllable.
Diseases: Pneumonia and other minor diseases are among problems faced by poultry farmers, but this
problem can be solved by seeking a veterinary doctor.
4.4 SWOT Analysis

Strengths Weaknesses
 Consistent quality: We will constantly  Lack of funding: We will need up to N15m
produce poultry product that is of high in fund to kick start fully
quality, well packaged and rich in protein.  No reputation yet: We haven’t established
 Experience: The owner is highly ourselves as a reputable firm yet compare
experience with over 5years in the industry to Obasanjo Farm, Animal Cares etc.
 Saleable products: We produce a high ratio
of healthy(saleable) products
Opportunities Threats
 Customer Loyalty: Customers are looking  Similar size farm: firms with similar farm
company that produces quality poultry have being in business
 Growing market: The poultry market is  Weather: poor weather will adversely affect
growing and the demand is very high. yield.
 Diseases: Diseases is also a big threat. It
can lead to high mortality rate and also
reduce the quality and revenue
 Importation/smuggling of poultry products
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4.4 External Environmental Analysis
Socio-cultural – Eating habits of our consumers will definitely affect our business. Also, the
success of restaurants and other firms that order our products will indirectly affect our
business.
Technological - A good technical infrastructure would lead to better production and hence lower
costs. Technology will also mean more effective business marketing.
Economic – economic trends such as demand and supply will determine the sustenance and
profitability of the business. Also inflation rates will affect the way we pay our employees and
the price of the product.
Political – this will include government policies concerning inspection by the ministry of health
and organizations like NAFDAC.
4.5 Competition and Buying Patterns

Nigeria presently consumes 1.5 million MT of frozen chicken annually and more than 70% of
the chicken consumed in Nigeria are imported.
According to The Poultry Association of Nigeria (PAN), 1.2 million metric tons (MT) of frozen
chicken valued at N660 billion was imported into the country in 2014 alone and this was four
times higher than what was produced locally, and exceeding the current industry capacity.
The above statistics show that the local farmers are unable to meet the demands. With this it
shows that the market is huge and competition is much except smuggling poultry products
which are not healthy and the price is lower than the one produced in Nigeria. With the increase
health concern of the imported poultry and Government ban on imported poultry, the
competition is not stiff.
Nigerian Custom recently destroys thousands of poultry products seize.
Even with the presence of top poultry farms like Obasanjo Farms, Animals Cares among others,
Nigerians still smuggle to meet growing demands.
Similar farms around us do not have the capacity to meet demands.
The buying patterns of the different customers are typically based on these variables:
 Price
 Availability
 Ability to deliver consistently on long-term contracts
 Consistency.
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5.0 Operation plan/Production Summary
5.1 Production plan

In our poultry, we are planning to increase our capacity to 20000 birds for egg and meat
production. Each layer will lay at least 1 egg, but we take into considering the fact that some may
not lay everyday so we peg it at 75% eggs daily.
So adult chicken will be sold off when they are no longer able to produce effectively.
5.2 Production costs

Our fixed costs include
• Insurance payments covering both general liability and product liability,
• Area of about one plot will be allocated for the farm;
• Materials for office and store furniture, shelving, a computer, phone system, and tools.
• Long-term assets including the refrigerator unit for the shop, window displays, a
refrigerated delivery van.
Raw materials used include
• Broilers
• Layers
• Water, Feed
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Great Jon-Amos International Ltd Poultry
Salaries and Wages
Salaries and Related Expenses # Assumptions Wage Base Monthly Year One Year Two Year Three
Percent Change 3.00% 3.00%
Salaries and Wages

Owner's Compensation 2 ₦ 20,000.00 240,000 247,200 254,616
Salaries 2 80,000 960,000 988,800 1,018,464
Wages
Full-Time Employees 10 195,000 2,340,000 2,410,200 2,482,506
Estimated Hours Per Week 40.00
Estimated Rate Per Hour ₦ 112.50
Part-Time Employees 5 30,333 364,000 374,920 386,168
Independent Contractors - - - -
Total Salaries and Wages 19 325,333 3,904,000 4,021,120 4,141,754
Payroll Taxes and Benefits

PAYE 2.20% 7,157 85,888 88,465 91,119
Medicare 1.45% 4,717 56,608 58,306 60,055
Federal Unemployment Tax (FUTA) 0.80% - - - -
State Unemployment Tax (SUTA) 2.70% - - - -
Employee Pension Programs 10.00% 32,533 390,400 390,400 390,400
Worker's Compensation 0.00% - - - -
Employee Health Insurance 0.50% 1,627 19,520 20,106 20,709
Other Employee Benefit Programs 4.00% 13,013 156,160 160,845 165,670
Total Payroll Taxes and Benefits 59,048 708,576 718,121 727,953
Total Salaries and Related Expenses 384,381 4,612,576 4,739,241 4,869,707
Others include the veterinary doctors, drivers and technician that we pay by the hour.
Labor in poultry farms are usually unskilled laborers who take care of the poultry services, guard
the chicken and its products and make deliveries. Their skills differ and they are mostly temporary
labor.
The food technicians prepare balanced fodder mixtures complying with the fodder concentrate.
Labor size in poultry production is usually unstable.
5.3 Production process

We are starting with POL (point-of-lay), these are birds in their fourteen to twenty weeks of Age,
(birds often start dropping their first egg from 22weeks to 24weeks of age). Advantage of acquiring
Point Of Lay birds is the reduced risk. Prices of POL at press time ranges from N750 to N950/bird.
In budgeting for feeding, a bag cost about N2,200 today and could feed 100birds for 3 days. A bird
at good lay point generate between N6 to N10/day as gross profit. This means that a flock of 100
laying birds could generate N800 profit per day, and about N24,000/month hence by implication
500 birds could generate N120,000/month. At the end of the 54 to 72weeks of lay, the spent
layers would be sold for nearly the equivalent amount with which the POL is purchased.
With the broilers, we buy day old chicks that will mature into live chickens in 8 weeks after which
another batch of day old chicks will be bought.
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5.4 Production systems
There are two main production systems in Nigeria. That is laying cage and deep litter systems.
a) Battery Cage System

Here birds are kept throughout their productive life time in cages. Each cage that will cage 120
birds cost N65,000-70,000. We have got in touch a supplier of the cage. In a battery cage system,
hens do not have contact with droppings which reduces infections. Feeding, providing water, egg
collection, removal of litter and cleaning are easier for the poultry attendants to perform.
b) Deep litter system

Here hens are confined in a house with floor space of 8 to 10 birds/m2 to ensure free
movement. The floor will be covered with a 5cm to 10cm deep litter of grain husks (maize or
rice), straw, wood shavings or a similarly absorbent (but non-toxic) materials. That’s why there
is sawdust in the budget. After old litter has been removed out of the house, the floor will be
cleaned and disinfected.
6.0 Sales Strategy

We will use direct sales strategy. We will approach members of our target markets via phone
and with direct visits. We will tell them about our current products and services, and then ask
them clearly what we need to do to earn their business. We will listen to their desires and
individual goals. We will then mirror back to them what they have said; to be sure we
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understand their needs. Finally, we will create an individualized sales proposal with their
specific needs (products, volumes, frequency, price, other services) included.
We will present the proposal as a written agreement ready for signature by both parties to
begin doing business.
Details for each order will be entered into our customer database. Deliveries will be
automatically scheduled through our point of sale/delivery database or base on customer’s
specific requirement. Each customer price grid, conditions and all specific comments will be
clearly maintained for all to review and to guarantee complete customer satisfaction. Each
order will be reviewed by one of the owners prior to delivery to guarantee quality, accuracy and
completeness. Terms for payment will be COD and an invoice for each shipment will be faxed or
called to each customer the day prior to delivery to ensure payment is ready at the time of
delivery. (This will all be part of the agreement terms.)
Follow up calls will go to each customer within 24 hours of each delivery to ensure satisfaction.
If for any reason there is an issue, it will be handled immediately by one of the owners directly
with the customer.
6.1 Sales Forecast

The sales forecast indicates that growth will be slow but steady. Growth will be slow because of
the time and effort needed to develop the customers and build good customer base. The
premier element to our financial plan is initiating, maintaining, and improving the factors that
create, stabilize and increase our cash flow
During the wet months of the year, the forecast reflects a tapering of sales as the condition
might not be favourable to lay as much eggs as possible. Sales will fall during these months.
There are a few risks that could have a negative impact on sales. The first is weather. Another
risk that could affect sales is some sort of diseases that could unexpectedly negatively affect
the birds. We have put in place measure to curtail this and reduce mortality rate to 5-10%.
6.1.1 Table: Sales Forecast
Year One % Year Two % Year Three %
Income
Eggs/Crate 24,833,050 31,041,313 38,801,641
Chicken Sales 17,322,000 19,054,200 20,959,620
By-products/Waste 267,500 294,250 323,675
- - -
Total Income 42,422,550 100.00% 50,389,763 100.00% 60,084,936 100.00%
Page 14
Table: Projected Sales for Eggs
Projected Sales Forecast
Products and Services Assumptions % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Eggs/Crate
Price Per Unit ₦ 550.00 100.00%
Variable Cost Per Unit ₦ 350.00 63.64%
Gross Margin Per Unit ₦ 200.00 36.36%
Projected Unit Sales
Seasonality Factor 4.65% 5.74% 7.75% 7.77% 8.17% 8.19% 8.19% 9.97% 9.97% 10.21% 10.30% 9.08% 100.00%
Year One 2,100 2,590 3,500 3,510 3,691 3,700 3,700 4,500 4,500 4,610 4,650 4,100 45,151
Year Two Growth 25.00% 2,625 3,238 4,375 4,388 4,614 4,625 4,625 5,625 5,625 5,763 5,813 5,125 56,439
Year Three Growth 25.00% 3,281 4,047 5,469 5,484 5,767 5,781 5,781 7,031 7,031 7,203 7,266 6,406 70,548
Overhead Exp Allocation 50.00%
Projected Revenue ₦ 24,833,050.00

Variable Costs 15,802,850
Gross Margin 9,030,200
Overhead Expenses 6,167,002
Profit 2,863,198 11.53%
Breakeven Sales Revenue ₦ 16,959,256.29

Breakeven Sales Units 30,835
Table: Projected Sales Chicken
Page 15
Chicken Sales
Price Per Unit ₦ 1,500.00 100.00%
Variable Cost Per Unit ₦ 600.00 40.00%
Year One 15 340 852 1,005 890 450 1,500 1,590 860 556 1,890 1,600 11,548
Year Two Growth 10.00% 17 374 937 1,106 979 495 1,650 1,749 946 612 2,079 1,760 12,703
Year Three Growth 10.00% 18 411 1,031 1,216 1,077 545 1,815 1,924 1,041 673 2,287 1,936 13,973
Projected Revenue ₦ 17,322,000.00

Variable Costs 6,928,800
Gross Margin 10,393,200
Overhead Expenses 2,055,667
Profit 8,337,533 48.13%
Breakeven Sales Revenue ₦ 3,426,112.38

Breakeven Sales Units 2,284
Sales Projections for Waste/fertilizer
Products and Services Assumptions % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
By-products/Waste
Price Per Unit ₦ 500.00 100.00%
Variable Cost Per Unit ₦ - 0.00%
Year One 10 25 50 50 50 50 50 50 50 50 50 50 535
Year Two Growth 10.00% 11 28 55 55 55 55 55 55 55 55 55 55 589
Year Three Growth 10.00% 12 30 61 61 61 61 61 61 61 61 61 61 647
Projected Revenue ₦ 267,500.00

Variable Costs -
Gross Margin 267,500
Overhead Expenses 1,000
Profit 266,500 99.63%
Breakeven Sales Revenue ₦ 1,000.00

Breakeven Sales Units 2
7.0 Management Summary
The company's management is highly experienced and qualified, with seasoned investors. The
company strives to hire qualified people who take pride in their work. The company's
management philosophy is based on responsibility and mutual respect. AgroBusiness’s poultry
maintains an environment and structure that encourages productivity and respect for
customers and fellow employees.
The following subtopics outline both the management team, and its team of employees.
Page 16
7.1 Organizational Structure
The Organizational Structure of AgroBusiness’s poultry is planned to be a simple and traditional

one. All production and manufacturing operations will report to the COO. All administrative and
finance functions will report to the CFO. Both the COO and CFO will report to the CEO, who will
also have the responsibility for Sales and Marketing.
7.2 Management Team

AgroBusiness Etim: Chief Executive Officer:
As the top manager, the CEO, he is responsible for the entire operations of the company. It is his
responsibility to implement decisions and initiatives and to maintain the smooth operation of the
company, with the assistance of the management team
Mrs Etim- Chief Financial Officer:

Also reporting directly to the CEO, she is responsible for analyzing and reviewing financial data,
reporting financial performance, preparing budgets and monitoring expenditures and costs. The
CFO routinely checks the corporation's financial health and integrity.
7.3 Personnel Plan
AgroBusiness Poultry is responsible to its employees, the men and women who work with the
company throughout the state. At AgroBusiness Poultry Company everyone is considered as an
individual, the company respects their dignity and recognizes their merit. Employees are
encouraged to have a sense of security and pride in their jobs. Additionally, employees are free to
make suggestions and complaints. The company affords equal opportunity for employment,
development, and advancement for those qualified
Page 17
Salaries and Wages
Salaries and Related Expenses # Assumptions Wage Base Monthly Year One Year Two Year Three
Salaries and Wages

Owner's Compensation 2 ₦ 20,000.00 240,000 247,200 254,616
Salaries 2 80,000 960,000 988,800 1,018,464
Wages
Full-Time Employees 10 195,000 2,340,000 2,410,200 2,482,506
Part-Time Employees 5 30,333 364,000 374,920 386,168
Independent Contractors - - - -
Total Salaries and Wages 19 325,333 3,904,000 4,021,120 4,141,754
Payroll Taxes and Benefits

PAYE 2.20% 7,157 85,888 88,465 91,119
Medicare 1.45% 4,717 56,608 58,306 60,055
Federal Unemployment Tax (FUTA) 0.80% - - - -
State Unemployment Tax (SUTA) 2.70% - - - -
Employee Pension Programs 10.00% 32,533 390,400 390,400 390,400
Worker's Compensation 0.00% - - - -
Employee Health Insurance 0.50% 1,627 19,520 20,106 20,709
Other Employee Benefit Programs 4.00% 13,013 156,160 160,845 165,670
Total Payroll Taxes and Benefits 59,048 708,576 718,121 727,953
Total Salaries and Related Expenses 384,381 4,612,576 4,739,241 4,869,707
8.0 Risk Assessment

Financial risks
• Changes in our pricing policies or that of our competitors
• Fluctuation in revenue from distributors and retailers
• Timing of costs related to acquisitions or payments
Health risks
Contagious disease and virus outbreak is very deadly; if one of the chickens should catch the
disease, all of them will be affected and if it's not recognized and treated early it will lead to the
death of all the chickens which is a great loss for the business. And also some of the diseases are
also contagious to human not just between the chickens which will affect the workers and also
those that eat it.
Disease prevalence varies from one area to the other. The problems that may trigger disease
conditions are direct sunlight on egg trays or nests, poor ventilated houses and very high
temperatures in and outside the poultry house, which may weaken egg shells resulting in poor egg
quality. All these conditions will be avoided to the best of our abilities.
Another thing we considered during the risk assessment is the mortality of the chickens which is
inevitable since we are dealing with living things. This can be managed with good management and
has been calculated to range between 5-10%.
Technological risks
Technology is good but they also have their disadvantages. There are normally problems involved
in using technology; the use of the machine that collects eggs may fail to work or spoil, making the
work slow and adding more cost to the business by repairing it. The cost for electricity is also not
easy and some electric problems can lead to fire outrage and burn the building causing the loss of
assets and perhaps the entire business.
Page 18
8.1 Contingency plans
As we considered these risks we have also made contingency plans for unprecedented events or
occurrences. As per the health risks, we will have plans with a veterinary doctor that will have
regular checkups with the chickens while giving them the best environmental conditions. Another
contingency plan we will make is insurance that will protect our assets. One of the risks we have to
face mentioned earlier, the occurrence of a fire outrage will be curbed by placing fire extinguishers
at strategic places.
Page 19
9.0 Financial Plan
The following sections will outline important financial information.
9.1 Breakeven Analysis

AgroBusiness Poultry Ltd
Breakeven
Analysis
Breakeven Analysis Dollars Percent

Annual Sales
Revenue ₦ 42,422,550.00 100.00%
Cost of Sales 22,731,650 53.58%
Gross Margin 19,690,900 46.42%
Salaries and Wages 4,612,576

Fixed Operating
Expenses 7,721,429
Total Fixed Business
Expenses 12,334,005
Breakeven Sales
Calculation 12,334,005
46.42%

Breakeven Sales in
Naira ₦ 26,572,677.00
9.2 Projected Profit and Loss
The following table and charts show the Projected Profit and Loss.
Page 20
Table: Profit and
Great Jon-Amos Loss
International Ltd Poultry
Year End Summary
Year One % Year Two % Year Three %
Income
Eggs/Crate 24,833,050 31,041,313 38,801,641
Chicken Sales 17,322,000 19,054,200 20,959,620
By-products/Waste 267,500 294,250 323,675
- - -
Total Income 42,422,550 100.00% 50,389,763 100.00% 60,084,936 100.00%
Cost of Sales
Eggs/Crate 15,802,850 19,753,563 24,691,953
Chicken Sales 6,928,800 7,621,680 8,383,848
By-products/Waste - - -
- - -
Total Cost of Sales 22,731,650 53.58% 27,375,243 54.33% 33,075,801 55.05%
Gross Margin 19,690,900 46.42% 23,014,520 45.67% 27,009,135 44.95%
Total Salary and Wages 4,612,576 10.87% 4,739,241 9.41% 4,869,707 8.10%
Fixed Business Expenses

Advertising 1,200,000 1,236,000 1,273,080
Car and Truck Expenses 600,000 618,000 636,540
Bank & Merchant Fees 120,000 123,600 127,308
Contract Labor - - -
Conferences & Seminars 180,000 185,400 190,962
Customer Discounts and Refunds - - -
Dues and Subscriptions 60,000 61,800 63,654
Miscellaneous 600,000 618,000 636,540
Insurance (Liability and Property) 250,000 257,500 265,225
Licenses/Fees/Permits 350,000 360,500 371,315
Legal and Professional Fees 120,000 123,600 127,308
Office Expenses & Supplies 600,000 618,000 636,540
Postage and Delivery - - -
Rent (on business property) - - -
Rent of Vehicles and Equipment 240,000 247,200 254,616
Sales & Marketing 600,000 618,000 636,540
Taxes-Other 240,000 247,200 254,616
Telephone and Communications 360,000 370,800 381,924
Travel 600,000 618,000 636,540
Utilities 300,000 309,000 318,270
Total Fixed Business Expenses 6,420,000 15.13% 6,612,600 13.12% 6,810,978 11.34%
Operating Income (before Other Expenses) 8,658,324 20.41% 11,662,679 23.14% 15,328,450 25.51%
[EBITDA]
Other Expenses
Amortized Start-up Expenses 1,185,000 1,185,000 1,185,000
Depreciation 1,301,429 1,301,429 1,301,429
Interest
Commercial Loan - - -
Commercial Mortgage - - -
Line of Credit - - - -
Credit Card Debt - - -
Vehicle Loans - - -
Other Bank Debt - - -
Taxes 1,471,379 2,072,250 2,805,404
Total Other Expenses 3,957,808 9.33% 4,558,679 9.05% 5,291,833 8.81%
Net Income 4,700,516 11.08% 7,104,000 14.10% 10,036,617 16.70%
Page 21
9.3 Projected Cash Flow
Table:International
Great Jon-Amos Projected Cash
Ltd Poultry Flow Statement – Year one
Projected Cash Flow Statement - Year One
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Beginning Cash Balance 2,500,000 1,992,119 1,882,237 2,427,656 3,112,775 3,730,593 3,761,112 4,929,731 6,339,350 6,474,669 6,975,687 8,685,306
Cash Inflows
Income from Sales 1,182,500 1,947,000 3,228,000 3,463,000 3,390,050 2,735,000 4,310,000 4,885,000 3,790,000 3,394,500 5,417,500 4,680,000 42,422,550
Accounts Receivable - - - - - - - - - - - - -
Total Cash Inflows 1,182,500 1,947,000 3,228,000 3,463,000 3,390,050 2,735,000 4,310,000 4,885,000 3,790,000 3,394,500 5,417,500 4,680,000 42,422,550
Cash Outflows
Investing Activities
New Fixed Assets Purchases - - - - - - - - - - - - -
Inventory Addition to Bal.Sheet - - - - - - - - - - - - -
Cost of Sales 744,000 1,110,500 1,736,200 1,831,500 1,825,850 1,565,000 2,195,000 2,529,000 2,091,000 1,947,100 2,761,500 2,395,000 22,731,650
Operating Activities
Salaries and Wages 384,381 384,381 384,381 384,381 384,381 384,381 384,381 384,381 384,381 384,381 384,381 384,381 4,612,576
Fixed Business Expenses 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000 6,420,000
Taxes - - - - - 193,100 - - 617,300 - - 660,980 1,471,379
Financing Activities -
Loan Payments 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 324,000
Line of Credit Interest - - - - - - - - - - - - -
Line of Credit Repayments - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Total Cash Outflows 1,690,381 2,056,881 2,682,581 2,777,881 2,772,231 2,704,481 3,141,381 3,475,381 3,654,681 2,893,481 3,707,881 4,002,361 35,559,605
Cash Flow (507,881) (109,881) 545,419 685,119 617,819 30,519 1,168,619 1,409,619 135,319 501,019 1,709,619 677,639 6,862,945
Operating Cash Balance 1,992,119 1,882,237 2,427,656 3,112,775 3,730,593 3,761,112 4,929,731 6,339,350 6,474,669 6,975,687 8,685,306 9,362,945
Line of Credit Drawdowns - - - - - - - - - - - - -
Ending Cash Balance 1,992,119 1,882,237 2,427,656 3,112,775 3,730,593 3,761,112 4,929,731 6,339,350 6,474,669 6,975,687 8,685,306 9,362,945
Line of Credit Balance - - - - - - - - - - - -
Table: Projected Cash Flow Statement – Year Two
Page 22
Projected Cash Flow Statement - Year Two
Cash Inflows
Cash Outflows
Inventory Addition to Bal. Sheet - - - - - - - - - - - - -
Cost of Sales 928,650 1,357,525 2,093,570 2,198,925 2,202,213 1,915,750 2,608,750 3,018,150 2,536,350 2,383,835 3,281,775 2,849,750 27,375,243
Taxes - - 25,173 - - 393,197 - - 800,937 - - 852,945 2,072,250
Loan Payments 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 324,000
Dividends Paid - - - - - - - - - - - - -
Cash Flow (427,637) 24,863 747,821 926,963 858,363 31,817 1,464,513 1,753,613 229,977 757,453 2,088,113 810,569 9,266,429
Table: Projected Cash Flow Statement – Year Three

Projected Cash Flow Statement - Year Three
Cash Inflows
Cash Outflows
Inventory Addition to Bal.Sheet - - - - - - - - - - - - -
Cost of Sales 1,159,328 1,663,246 2,532,615 2,649,161 2,664,656 2,350,138 3,112,438 3,615,278 3,085,298 2,924,750 3,915,109 3,403,788 33,075,801
Taxes - - 135,939 - - 561,098 - - 1,023,104 - - 1,085,263 2,805,404
Loan Payments 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 324,000
Dividends Paid - - - - - - - - - - - - -
Cash Flow (321,755) 194,370 915,499 1,221,180 1,152,507 115,062 1,819,610 2,167,620 349,545 1,075,969 2,541,195 968,246 12,199,046
Page 23
9.4 Projected Balance Sheet
Table: Projected Balance Sheet – Year One

Balance Sheet - Year One
Base Period End of Year One
Assets
Current Assets
Cash 2,500,000 9,362,945
Accounts Receivable - -
Inventory 100,000 100,000
Prepaid Expenses 3,155,000 2,103,333
Other Current 400,000 266,667
Total Current Assets 6,155,000 11,832,945
Fixed Assets
Farm-Land 600,000 600,000
Buildings 1,500,000 1,500,000
Leasehold Improvements - -
Equipment 3,895,000 3,895,000
Furniture and Fixtures 350,000 350,000
Vehicles 2,500,000 2,500,000
Other Fixed Assets 500,000 500,000
Total Fixed Assets 9,345,000 9,345,000
Less: Accumulated Depreciation - 1,301,429
Total Assets 15,500,000 19,876,516
Liabilities and Owner's Equity

Liabilities
Accounts Payable - -
Loan Payable (1,680,000) (1,920,000)
Mortgage Payable 1,680,000 1,596,000
Credit Card Debt - -
Vehicle Loans - -
Other Bank Debt - -
Line of Credit Balance - -
Total Liabilities - (324,000)
Owner's Equity
Common Stock 15,500,000 15,500,000
Retained Earnings - 4,700,516
Dividends Dispersed - -
Total Owner's Equity 15,500,000 20,200,516
Total Liabilities and Owner's Equity 15,500,000 19,876,516
Statement Balances Statement Balances
Page 24
GreatTable: Projected
Jon-Amos Balance Sheet
International – Year Two
Ltd Poultry
Balance Sheet - Year Two
End of Year One End of Year Two
Assets
Current Assets
Cash 9,362,945 18,629,374
Inventory 100,000 100,000
Prepaid Expenses 2,103,333 1,051,667
Other Current 266,667 133,333
Fixed Assets
Farm-Land 600,000 600,000
Buildings 1,500,000 1,500,000
Equipment 3,895,000 3,895,000
Vehicles 2,500,000 2,500,000
Less: Accumulated Depreciation 1,301,429 2,602,857
Total Assets 19,876,516 26,656,516

Liabilities
Notes Payable (1,920,000) (2,160,000)
Vehicle Loans - -
Other Bank Debt - -
Total Liabilities (324,000) (648,000)
Owner's Equity
Common Stock 15,500,000 15,500,000
Retained Earnings 4,700,516 11,804,516
Page 25
GreatTable: Projected
Jon-Amos Balance
International Sheet
Ltd – Year Three
Poultry
Balance Sheet - Year Three
End of Year Two End of Year Three
Assets
Current Assets
Cash 18,629,374 30,828,419
Inventory 100,000 100,000
Prepaid Expenses 1,051,667 (0)
Other Current 133,333 (0)
Fixed Assets
Farm-Land 600,000 600,000
Buildings 1,500,000 1,500,000
Equipment 3,895,000 3,895,000
Vehicles 2,500,000 2,500,000
Less: Accumulated Depreciation 2,602,857 3,904,286
Total Assets 26,656,516 36,369,133

Liabilities
Notes Payable (2,160,000) (2,400,000)
Vehicle Loans - -
Other Bank Debt - -
Total Liabilities (648,000) (972,000)
Owner's Equity
Common Stock 15,500,000 15,500,000
Retained Earnings 11,804,516 21,841,134
Page 26
9.5 Projected Income Statements
Table: Projected Income Statement – Year Two

Projected Income Statement - Year Two
Income
Eggs/Crate 1,443,750 1,780,625 2,406,250 2,413,125 2,537,563 2,543,750 2,543,750 3,093,750 3,093,750 3,169,375 3,196,875 2,818,750 31,041,313
Chicken Sales 24,750 561,000 1,405,800 1,658,250 1,468,500 742,500 2,475,000 2,623,500 1,419,000 917,400 3,118,500 2,640,000 19,054,200
By-products/Waste 5,500 13,750 27,500 27,500 27,500 27,500 27,500 27,500 27,500 27,500 27,500 27,500 294,250
-
Total Income 1,474,000 2,355,375 3,839,550 4,098,875 4,033,563 3,313,750 5,046,250 5,744,750 4,540,250 4,114,275 6,342,875 5,486,250 50,389,763
Cost of Sales
Eggs/Crate 918,750 1,133,125 1,531,250 1,535,625 1,614,813 1,618,750 1,618,750 1,968,750 1,968,750 2,016,875 2,034,375 1,793,750 19,753,563
Chicken Sales 9,900 224,400 562,320 663,300 587,400 297,000 990,000 1,049,400 567,600 366,960 1,247,400 1,056,000 7,621,680
By-products/Waste -
-
Total Cost of Sales 928,650 1,357,525 2,093,570 2,198,925 2,202,213 1,915,750 2,608,750 3,018,150 2,536,350 2,383,835 3,281,775 2,849,750 27,375,243
Gross Margin 545,350 997,850 1,745,980 1,899,950 1,831,350 1,398,000 2,437,500 2,726,600 2,003,900 1,730,440 3,061,100 2,636,500 23,014,520
Total Salary and Wages 394,937 394,937 394,937 394,937 394,937 394,937 394,937 394,937 394,937 394,937 394,937 394,937 4,739,241

Advertising 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 103,000 1,236,000
Car and Truck Expenses 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Bank & Merchant Fees 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 123,600
Contract Labor - - - - - - - - - - - - -
Conferences & Seminars 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 15,450 185,400
Customer Discounts and Refunds - - - - - - - - - - - - -
Dues and Subscriptions 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 5,150 61,800
Miscellaneous 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Insurance (Liability and Property) 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 21,458 257,500
Licenses/Fees/Permits 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 30,042 360,500
Legal and Professional Fees 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 10,300 123,600
Office Expenses & Supplies 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Postage and Delivery - - - - - - - - - - - - -
Rent (on business property) - - - - - - - - - - - - -
Rent of Vehicles and Equipment 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 247,200
Sales & Marketing 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Taxes-Other 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 20,600 247,200
Telephone and Communications 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 30,900 370,800
Travel 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 51,500 618,000
Utilities 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 25,750 309,000
Total Fixed Business Expenses 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 551,050 6,612,600
Other Expenses
Amortized Start-up Expenses 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 1,185,000
Depreciation 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 1,301,429
Interest
Commercial Loan - - - - - - - - - - - - -
Commercial Mortgage - - - - - - - - - - - - -
Line of Credit - - - - - - - - - - - - -
Credit Card Debt - - - - - - - - - - - - -
Vehicle Loans - - - - - - - - - - - - -
Other Bank Debt - - - - - - - - - - - - -
Taxes - - 25,173 169,102 155,382 68,712 276,612 334,432 189,892 135,200 401,332 316,412 2,072,250
Total Other Expenses 207,202 207,202 232,375 376,305 362,585 275,915 483,815 541,635 397,095 342,403 608,535 523,615 4,558,679
Net Income (607,839) (155,339) 567,618 577,659 522,779 176,099 1,007,699 1,238,979 660,819 442,051 1,506,579 1,166,899 7,104,000
Table: Projected Income Statement – Year Three
Page 27
Projected Income Statement - Year Three
Income
Eggs/Crate 1,804,688 2,225,781 3,007,813 3,016,406 3,171,953 3,179,688 3,179,688 3,867,188 3,867,188 3,961,719 3,996,094 3,523,438 38,801,641
Chicken Sales 27,225 617,100 1,546,380 1,824,075 1,615,350 816,750 2,722,500 2,885,850 1,560,900 1,009,140 3,430,350 2,904,000 20,959,620
By-products/Waste 6,050 15,125 30,250 30,250 30,250 30,250 30,250 30,250 30,250 30,250 30,250 30,250 323,675
-
Total Income 1,837,963 2,858,006 4,584,443 4,870,731 4,817,553 4,026,688 5,932,438 6,783,288 5,458,338 5,001,109 7,456,694 6,457,688 60,084,936
Cost of Sales
Eggs/Crate 1,148,438 1,416,406 1,914,063 1,919,531 2,018,516 2,023,438 2,023,438 2,460,938 2,460,938 2,521,094 2,542,969 2,242,188 24,691,953
Chicken Sales 10,890 246,840 618,552 729,630 646,140 326,700 1,089,000 1,154,340 624,360 403,656 1,372,140 1,161,600 8,383,848
By-products/Waste -
-
Total Cost of Sales 1,159,328 1,663,246 2,532,615 2,649,161 2,664,656 2,350,138 3,112,438 3,615,278 3,085,298 2,924,750 3,915,109 3,403,788 33,075,801
Gross Margin 678,635 1,194,760 2,051,828 2,221,570 2,152,898 1,676,550 2,820,000 3,168,010 2,373,040 2,076,359 3,541,585 3,053,900 27,009,135
Total Salary and Wages 405,809 405,809 405,809 405,809 405,809 405,809 405,809 405,809 405,809 405,809 405,809 405,809 4,869,707

Advertising 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 106,090 1,273,080
Car and Truck Expenses 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Bank & Merchant Fees 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 127,308
Contract Labor - - - - - - - - - - - - -
Conferences & Seminars 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 15,914 190,962
Customer Discounts and Refunds - - - - - - - - - - - - -
Dues and Subscriptions 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 5,305 63,654
Miscellaneous 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Insurance (Liability and Property) 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 22,102 265,225
Licenses/Fees/Permits 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 30,943 371,315
Legal and Professional Fees 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 10,609 127,308
Office Expenses & Supplies 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Postage and Delivery - - - - - - - - - - - - -
Rent (on business property) - - - - - - - - - - - - -
Rent of Vehicles and Equipment 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 254,616
Sales & Marketing 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Taxes-Other 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 21,218 254,616
Telephone and Communications 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 31,827 381,924
Travel 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 53,045 636,540
Utilities 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 26,523 318,270
Total Fixed Business Expenses 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 567,582 6,810,978
Other Expenses
Amortized Start-up Expenses 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 98,750 1,185,000
Depreciation 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 108,452 1,301,429
Interest
Commercial Loan - - - - - - - - - - - - -
Commercial Mortgage - - - - - - - - - - - - -
Line of Credit - - - - - - - - - - - - -
Credit Card Debt - - - - - - - - - - - - -
Vehicle Loans - - - - - - - - - - - - -
Other Bank Debt - - - - - - - - - - - - -
Taxes - - 135,939 227,945 214,211 118,941 347,631 417,233 258,239 198,903 491,948 394,411 2,805,404
Total Other Expenses 207,202 207,202 343,141 435,148 421,413 326,144 554,834 624,436 465,442 406,106 699,151 601,614 5,291,833
Net Income (501,958) 14,167 735,296 813,032 758,094 377,016 1,291,776 1,570,184 934,208 696,863 1,869,044 1,478,896 10,036,617
Page 28
9.6Jon-Amos
Great Fixed Operating Expenses
International Ltd Poultry
Fixed Operating Expenses
Fixed Operating Expenses Monthly Year One Year Two Year Three
Expenses
Advertising ₦ 100,000.00 1,200,000 1,236,000 1,273,080
Car and Truck Expenses 50,000 600,000 618,000 636,540
Bank & Merchant Fees 10,000 120,000 123,600 127,308
Contract Labor - - - -
Conferences & Seminars 15,000 180,000 185,400 190,962
Customer Discounts and Refunds - - - -
Dues and Subscriptions 5,000 60,000 61,800 63,654
Miscellaneous 50,000 600,000 618,000 636,540
Insurance (Liability and Property) 20,833 250,000 257,500 265,225
Licenses/Fees/Permits 29,167 350,000 360,500 371,315
Legal and Professional Fees 10,000 120,000 123,600 127,308
Office Expenses & Supplies 50,000 600,000 618,000 636,540
Postage and Delivery - - - -
Rent (on business property) - - - -
Rent of Vehicles and Equipment 20,000 240,000 247,200 254,616
Sales & Marketing 50,000 600,000 618,000 636,540
Taxes-Other 20,000 240,000 247,200 254,616
Telephone and Communications 30,000 360,000 370,800 381,924
Travel 50,000 600,000 618,000 636,540
Utilities 25,000 300,000 309,000 318,270
Total Expenses 535,000 6,420,000 6,612,600 6,810,978
Other Expenses
Depreciation 108,452 1,301,429 1,301,429 1,301,429
Interest
Commercial Loan - - - -
Commercial Mortgage - - - -
Line of Credit - - - -
Credit Card Debt - - - -
Vehicle Loans - - - -
Other Bank Debt - - - -
Total Other Expenses 108,452 1,301,429 1,301,429 1,301,429
Total Fixed Operating Expenses 643,452 7,721,429 7,914,029 8,112,407
Page 29

Agro Business Poultry Business Plan

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Agro Business Poultry Business Plan

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Business Plan

AgroBusiness Poultry Ltd

Company: AgroBusiness Poultry

Address: 124, Egbeda Road, Egbeda, Lagos

9.2 Projected Profit and Loss.....................................................................................................19

We have identified the following objectives to pursue in the upcoming years:

The key factors to making this venture a success are:

2.0 Company Summary

The company is registered with corporate affairs commission of Nigeria as AGROBUSINESS

2.1 Company History

2.2 Company Ownership

The company is 100% own by AgroBusiness Etim.

2.4 Start-Up Summary

Required Start-Up Funds Amount Totals Depreciation Notes

Total Required Funds ₦ 15,500,000.00

3.1 Competitive Comparison

4.0 Market Analysis Summary

4.1 Market Segmentation

4.2 Target Market Segment Analysis

4.3 Industry Analysis

4.4 SWOT Analysis

4.5 Competition and Buying Patterns

Nigerian Custom recently destroys thousands of poultry products seize.

Similar farms around us do not have the capacity to meet demands.

5.1 Production plan

5.2 Production costs

• Insurance payments covering both general liability and product liability,

• Area of about one plot will be allocated for the farm;

Raw materials used include

Percent Change 3.00% 3.00%

Salaries and Wages

Payroll Taxes and Benefits

Total Salaries and Related Expenses 384,381 4,612,576 4,739,241 4,869,707

5.3 Production process

a) Battery Cage System

b) Deep litter system

6.0 Sales Strategy

6.1 Sales Forecast

6.1.1 Table: Sales Forecast

Year One % Year Two % Year Three %

By-products/Waste 267,500 294,250 323,675

Projected Sales Forecast

Projected Revenue ₦ 24,833,050.00

Breakeven Sales Revenue ₦ 16,959,256.29

Table: Projected Sales Chicken

Projected Revenue ₦ 17,322,000.00

Breakeven Sales Revenue ₦ 3,426,112.38

Sales Projections for Waste/fertilizer

Projected Revenue ₦ 267,500.00

Breakeven Sales Revenue ₦ 1,000.00

7.0 Management Summary

The Organizational Structure of AgroBusiness’s poultry is planned to be a simple and traditional

7.2 Management Team

Mrs Etim- Chief Financial Officer:

7.3 Personnel Plan

Percent Change 3.00% 3.00%

Salaries and Wages

Payroll Taxes and Benefits

Total Salaries and Related Expenses 384,381 4,612,576 4,739,241 4,869,707

8.0 Risk Assessment

The following sections will outline important financial information.

9.1 Breakeven Analysis

Breakeven Analysis Dollars Percent

Salaries and Wages 4,612,576