Executive Summery

Poultry is emerging & important sector that has been contributing progressively to our economy from
the past decade. Poultry is one of the fastest growing and most promising industries with the biggest
future in our country.

Poultry sector are playing a vital role in the reduction of poverty, malnutrition and unemployment
problem of our country. Venture category of our business will be partnership. It will run under the
partnership act of our country. The partnership will be partnership -at-will were the partnership is not
for the fixed period of time and where no provision is made as to when and how the partnership will
come to an end according to partnership act. Business commenced by the firm to customers. The most
important requirement in any kind of business is purpose. Our purpose is to satisfy the customer by
providing quality product. Our business will meet the demand of the restaurant, super shops, super
markets, heter, community centers, bakery and catering houses. A market characteristic of the poultry
farm is not very much competitive in that way the demand of the hens & egg is very high but the
suppliers could not able to satisfy the demand of the customers & consumers.

Business Description

The venture /firm / to be establish is a poultry farm that will concentrate in the production of eggs &
hens because of the fund required the venture will start as a small scale business having the population
of Addis Ababa as the target market. The firm is an entirely new firm to be started from the scratch. The
firm will be located at making use of a rented building and the necessary equipment needed for the
operation. /incubator, feeders, e.t.c/

Business Environment Analysis

A visit was made to the Ministry Of Trade, Ministry Of Industry, Chamber Of Commerce and other
entity’s to ensure that all legal clearance is made because of the high interest rate on loan from
commercial bank we will turn to micro finance bank, selling some shares by showing the attractiveness
of the business for family members and friends for the necessary funds. It is believed that the business
will excel since people of all ages consume egg and eggs are used tin producing verities of product.
Quality chickens will be acquired through the number may be limited due to the high price. The
following also considered access to water and electricity supply.

As new firm having others in the same line of business we know it will not be easy to break in to the
market, but we have advised strategies to overpower our competitors.
Market Analysis
There are few people in the region already carrying out this business through on a very small scale. The
demand for egg has not being fully satisfied that is why we have scarcity of it in some area. Some of the
eggs consume in Addis Ababa comes from other regions and is sold hear between birr 2.60 and 3.00.
There is high demand for that matter for both domestic and industrial uses.

Market Plan
As we mentioned earlier the residents of Addis Ababa being our target market. And awareness will be
made by every recommended means’s of advertisement mechanisms. The advertisement will be made
on news paper s, flyers, sticker e.t.c. the price we intend to sale our products will be lower than the
existing price, we are going to make use of distributer scattered in different part of the area. We will
make sure that no one of our customers is disappointed, demand will met on time, there will be 3

Operation Plan

The firm will be commercial poultry farm there for it will require full time labor & geared toward
producing on a scale for the sale egg.

Birds usually start to lay at around five months (20-21) weeks of age and continue to lay for 12
month(52 weeks) on average, laying fewer egg as the moulting period.

The typical production cycle lasts about 17 months (72 weeks) and involves three distinct phases as
follows:

 Phase 1 - Small chick or Broilers: this phase last from 0-2 months during which small
chicks are kept in facility (broiler’s house) separate from laying birds.
 Phase 2- Growers: this phase last about 3months from the ninth to the twentieth week of
age. Growers may be either housed cun-grower houses. Appropriate care will be provided to the
growers particularly between their 17th and 20th week of age as their reproductive organs
develop during this period.
 Phase 3- layers: growers are transferred from the grower’s house to the layers
house when they are 1weeks old to prepare for the laying cycle .birds typically lay
for a twelve month period starting when they are about 21 weeks old and lasting
until they are about 72weeks old.
 Phase 4- collection of egg: eggs will be collected frequently to prevent hens from
brooding it or trying to eat them and also to prevent the eggs from becoming
damaged or dirty.
Management and organization
Through the business will be owned by one/two persons, they will need other hand to push it to
greatness to this end the firm will have the following in its management team; General Manager,
Operation Manager, Marketing Manager.

Financial plan
The initial cost of starting this small scale poultry farm business is about 20,000.00 that will be used for
acquiring 100hens assuming there will be 60 layers, rent a plot of land building structure that house the
chicken buying equipment daily feeding and medical treatment.

The expenses for rearing chicks include

Chicks #of hens100* birr 40= birr 4000

Feeds 8killo/day-240killo/month*6 birr= birr 1440 17280 birr /year

Housing 600 birr /month

Equipments 1200 birr for 5years 2400 birr /year 200 birr/month

Labor 800 birr

Vaccination 850/year

Mortality 5 chicks /year 200 birr/year

Project cost 2, 3730.00

Weekly cost & sales

Egg sold birr 1260 (7days*3.00*60 hens)

Feed used birr 336 (8killo/day * 7days*6.00)

Rearing cost minus a & b 924.00

Income for the year

Sale of eggs 60,480 birr (birr 1260*48weeks)

Sale of culled birds 800 birr (#20*40 birr)

Sale of manure 300 birr (10bags*30 birr )

Total income 61,580.00

Production budget for the year

Unit to be sold 20,160 eggs

Eggs 20,160 eggs

Plan closing stock -

Less opening stock -

Unit to be produced -

Manure production budgets for the year

Unit to be sold/bag 10bags

Planned closing stock -

Less planned operating stock -

Planned production -

Operating e expenses for the year

Salaries 9,000

Wages 6,000

Light power & heating/electricity 4,800

Transportation, Selling and distribution expense 10,000

Advertising 2,000

Insurance -

Security -

Rent 7,200

Feeds and vaccinations 17,280

Factory expense -

Projected income statement 56,280.00

First year profit oversee

Total income of the year

Sale of eggs 60,480 birr (birr 1260*48weeks)

Sale of culled birds 800 birr (#20*40 birr)

Sale of manure 300 birr (10bags*30 birr)

Total income 61,580.00

Total expenses of the year

Salary 9,000.00

Wage 6,000.00

Light, heating& electricity 4,800.00

Transport, selling& Distribution expense 10,000.00

Advertising 2,000.00

Rent 7,200.00

Feeds & vaccinations 17,280.00

Total expense 56,280.00

Profit = Total income-Total expense

=61,580.00 – 56,280.00

=5,300.00
The Second year profit oversee

Total income of the year

Replacement income from sales of the old checks

(sales- Purchase) 60*60=3600 & 60*40=2400 which is 1,200.00

Sale of eggs 70,560 birr (birr 1470*48weeks)

Sale of culled birds 900 birr (#15*60 birr)

Sale of manure 300 birr (10bags*30 birr)

Total income 72, 960.00

Total expenses of the year

Salary 10,000.00

Wage 8,000.00

Light, heating & electricity 4,800.00

Transport, selling& Distribution expense 10,000.00

Advertising 1,500.00

Rent 8,000.00

Feeds & vaccinations 17,280.00

Total expense 59,580.00

Profit = Total income -Total expense

=72,960.00 – 59,580.00

=13,380.00
The 3rd year profit oversee

Total income of the year

Replacement income from sales of the old checks

(sales- Purchase) 60*60=3600 & 60*40=2400 which is 1,200.00

Sale of eggs 120,960 birr (birr 120*7*3*48weeks)

Sale of culled birds 900 birr (#15*60 birr)

Sale of manure 450 birr (15bags*30 birr)

Total income 123, 510.00

Total expenses of the year

Salary 12,000.00

Wage 9,000.00

Light, heating& electricity 4,800.00

Transport, selling& Distribution expense 10,000.00

Advertising 2,000.00

Rent 10,000.00

Feeds & vaccinations 17,280.00

Total expense 65,080.00

Profit = Total income -Total expense

=123,510.00 – 65,080.00

=58,430.00

Project statement for the 3 year

Year 1 Year 2 Year 3

Sales 61,580.00 72,960.00 123,510.00
Cost of sales 56,280.00 59,580.00 65,080.00
Gross profit 5,300.00 13,380.00 58,430.00
  Sales will increase by more than 58% & yearly, cost of sales will increase by 100%
because of the additions on costs and investment and broadening of the farm and
operating expense will rise by 5% as well.

Net average profit = 3 years profit / Number of years

=5,300.00+13,380.00+58,430.00 / 3 years

=77,110.00/3

=25,703.33

Payable period = Total investment / Net average income

=20,000.00 / 25,703.33

=0.77 year /8 months/

Annual rate of return = Average profit / Total investment

=25,703.33 / 20,000.33

=129%
Conclusion

From the survey carries out and the projection made it is discovered that the project will be a
worthwhile one the project has the ability to pay back its owner capital within just 0.77
Year/8monthes and has a capital employ of 129% makes it very viable.
We have the confidence that our idea (dream) and further research will lead this firm to greatness.
When the firm is well established, it will provide employment opportunity for both the owners and
other societies, it will also provide egg for household consumption, fast food and industrial use.

Extensive research has being made still other suggestion will still be welcomed from well wishers.