REPORT ON THE PROPOSED BROILER PROJECT FOR GUSHA FARM

APRIL 2023
ATTENTION GUSHA FARM
FINANCIAL ANALYSIS FOR THE PROPOSED BROILER PROJECT
The chicken project starts with infrastructure development just like any other
investment at the farm and on matters of numbers to start with, the chicken project
has only higher start-up costs and relatively lower operational expenses. The planned
investment will be expected to bring in income through the sale of broilers. However
before money begins to flow into the business; substantial investments in chicks,
feeds, vet drugs, and equipment will be necessary. Table 1, below is showing the
initial budget required and projection of the enterprise incorporating the proposed
investments, and the same is used for the layers chicken project

The below tables are summaries of the initial costs of production required to ensure
that the business starts in the best possible way and is a framework for the business
to take off on the right footing, additionally, there is the construction of the structure
which is 1000 square meters and electricity supply and fitting as well as solar
borehole and water piping which are priced separately. In summary, the construction
and fittings of electricity will require US$39 800 for the 1000 square meter house
 The budget for 10 000 broilers- the equipment is once off investment
Table 1 Broiler budget with initial equipment costs

Product Pack size Qty Unit Price (USD) USD

Broiler chicks 10 200 10 000 $0.95 $9 500
Broiler starter 50kg 100 $32 $ 3 200
Broiler grower pellets 50kg 200 $34 $6 800
Broiler finisher pellets 50kg 400 $ $13 600
Vaccines -MA 5 ND Clone 30 2500 D 4 $10 $40
Equipment
Drum heaters 200L 10 $60 $600
Bulk chick feeder trays 3kgs 300 $3 $900
Water font 4l 300 $3 $900
Feeders 12kgs 280 $7 $1960
Water drinkers /bell 15litres 280 $9 $2520
Hard broom 1 x 600mm 10 $2.5 $25
Tying twine 2m 200 $1.8 $360
Supplements
Stress pack 500g 2 $5 $10
Esb 3 1kg 3 $40 $120
Coliflox oral 1l 1 20 $20
Disinfectants & Detergents
Maxi clean 1kg 10 $6 $60
Maxi viracide 1kg 10 $10 $100
Maxi bioprotect 1kg 10 $7 $70.00
Virukill 5l 5l $40 $40
Tota Startup Production costs $40 825
ANNUAL CASH FLOW FORECAST FOR THE PROPOSED BROILER ENTERPRISE

Assumptions
1. The mortality rate is 3.5% - 9 834 birds available for sale with 1.8kgs ave weight at
US$3.5/kg and uniformity of birds at 90%, implications on the selling time and
overall flock value.
2. Available for sale on average is 17 717.4kgs and 6 to 8 batches are possible in one year
we are using a constant number of birds in every batch which is 10 200

Table 2 shows the cash flow forecast for the 10 000 broiler project

Time Jan-Feb Mar-Apr May-Jun Jul-Aug Sep-Oct Nov-Dec

Currency (US$) (US$) (US$) (US$) (US$) (US$)

REVENUE
Opening balance (47 065) (26 264.1) (5 463.2) 15 337.7 36 138.6 55 279.5
Loan -
TURNOVER 62 010.9 62 010.9 62 010.9 62 010.9 62 010.9 62 010.9

EXPENDITURE
Feeds 23 600 23 600 23 600 23 600 23 600 23 600

Chicks 9 500 9 500 9 500 9 500 9 500 9 500

Veterinary supplies; 190 190 190 190 190 190

Staff salaries
510 510
510 510 510 510
Marketing and sales
600
1000 1000 1000 1000
Transport costs
480 480
480 480 480 480
Abattoir and cold storage
4 500 4 500
4 500 4500 4500 4500
Utility charges
300 300
300 300 300 300
Bedding and litter
150 150
150 150 150 150
Brooding and heating charcoal
450 450
450 450 450 450
Security
250 300
200 200 200 200
Administration
200 200
190 190 190 190
Insurance
140 140
140 140 140 140
Bonuses| Commission | perks
2000 2500
- - - -
TOTAL EXPENDITURE
42 870 42 820
41 210 41 210 41 210 41 210

CASH IN (OUT) FLOWS ( 26 264.1 ) (5 463.2) 15 337.7 36 138.6 55 279.5 74 470.4

From the above two tables, it is definitely clear that the initial investment for this project is
going to be on average US$ 88 275 which is covering the whole of the initial batch of birds
from the construction to the project implementation excluding only borehole drilling and
installation. The production will for the first 2 batches operate without significant positive
cash flow and will however give the first positive cash flow on the third batch, it is very
important to emphasize that, raising broiler chickens and getting positive cash flow is not as
easy as it may look. There is a lot of working hard which must be done accompanied by
sleepless nights to achieve performance targets and ultimately get the best results which must
be consistent.

In general, the businesses usually get a return of 2.95 for general farmers who are usually on
top of performance and others usually get a single dollar to US$1.90 per bird, on matters of
costs of production, the general range is from US$3 – US$3.5 for raising a single bird to the
market. When done correctly from the start, the business is indeed a game changer and much
more rewarding all the time.
Having expert advice, a well-trained and viable human capital, and a team is part of what will
form a viable business enterprise

Regards
Wenceslous Nyamupfukudza