Poultry Farming Business Plan Feasibility Study

Poultry Farming Business Plan Feasibility Study

Poultry Farming Business Plan Feasibility Study is all you need to establish your desired Poultry farming business. Investing large capital on a poultry business without a well developed business plans and feasibility study report is a big rick. Business plans and Feasibility study Reports opens you up to the strategy of making maximum ;profit in the business.

Poultry Farm Business Plan Feasibility Study
As a matter of facts, this Poultry Farm Business Plan Feasibility Study has been written by Onwuama Chibuzor Victor, a HND student. In like manner, this is just a sample write up on Poultry Farm Business Plan Feasibility Study. Similarly, our business plans and feasibility study Report are broken down into two. Peruse our table of contact to see what you get when we write a business plan and a feasibility study for you.

Executive Summary Poultry Farm Business Plan Feasibility Study

Feasibility Study on the establishment of a poultry form is based on the survey made by Onwuama Chibuzor Victor, and the business with by wholly owned by him. The name of the poultry farm will be name VONEX FARMS VENTURE and will concentrate on sales of eggs and table meat bird (boilers).

 

We will supply birds and eggs to different quick service restaurant in south west Nigeria and our vision is to be one of the known poultry farm product supplier in Nigeria with a mission to raise healthy birds at a very profitable venture.

 

From the research that was carried out it was discovered that the demand for eggs and bird meat is not fully satisfied around some areas of Lagos, though they are already existing poultry farms operating around borders of Lagos and Ogun state environment, the poultry farm will be sited at Ifo Local government area in Ogun state a neighboring environment to Lagos, there are high demand in some part of lfo, Sango and some part of Lagos. These legal requirements for the establishment of this venture such as local government revenue (tax) per month and security payment (vigilante) per month have been inquired and will be carefully complied with.

 

The venture will help in providence employment to the locals meeting the demand of eggs and making the price affordable in future, VONEX FARMS VENTURES intends to develop into other livestock farming structures such as turkey, duck, guinea fowl and quail.

 

POULTRY STRATEGY AND IMPLEMENTATION SUMMARY OBJECTIVE

·
Firstly, to increase number of our client by 20% within 2 years of existence
·
Secondly, to evaluate our strategic marketing by every three months
·
Lastly, to keep and maintain hygienic farms for healthy eggs and birds
 

POULTRY TACTICS AND STRATEGY IMPACTS

VONEX FARMS products will be priced at affordable rate. When a markup is placed on any of our products, customers will
be willing to pay because of the affordable price.
 
The venture to be established is a poultry farm that will concentrate on the production of eggs and sales of broilers, birds because of the fund required the venture will start as a small scale business having the population of three Local Government Area of Lagos, which are Alimosho, Agege, Ifako – Ijaiye are target market. The farm site will be a permanent land and will need necessary equipment for its operation as it is entirely new firm to start from the scratch.
 

OPERATIONAL PLAN ON POULTRY

The firm will be a commercial poultry farm; therefore it will require a full time labour and geared towards productivity on a scale for the sales of egg and sales of broiler birds.
For egg production, birds usually starts to lay at 18-22 weeks of age and continue to lay for Twelve months (52weeks) on average laying fewer egg as the new mounting period. The typical production cycle last about 17 months (72 weeks) and involves three district phases as follows:
PHASE 1:
Pullets or broilers: This phrase last from 0 – 8 weeks during which small chicks (pullets) are kept separately from broilers.
PHASE 2 (GROWERS): This period concerned is between 8 – 21 weeks of age. Growers are the future laying birds and the way they grow up will largely determine how well they do in the laying house. Therefore management during the growing period is very important.
PHASE 3 (LAYERS): The laying period is taken to have started when the birds reach 5% egg production on a daily basis. The laying period continues until the birds are sold at the end of a laying period of normal length or are force mounted Housing time starts with the beginning of the laying period. The number of birds housed is the number of pullet in the laying house when egg production starts.

MARKET ANALYSIS ON POULTRY

Most meals in Nigeria is not complete without poultry output like egg or meat. Nigeria has over 170 million growing population that demand for meat or egg on a daily basis. With increasing awareness on health implication of red meat, they are ever increasing demand for white meat and livestock are source of white meat.

POULTRY MARKETING STRATEGY

As we mentioned earlier, resident and families of three local government of Lagos being our target market awareness will be made by means of advertisement. The advertisement will be made on flyers, handbills, and one on one marketing will be done to eateries, restaurants and companies that demand for our product. Our major market aggression will be supplied to local markets makers of Cake and Ice Cream, Local restaurants and hotels

MARKETING

Marketing activities include among other grading quality, promotions, packaging and value adding these activities are essentials as they will lead to large volume of sales of product quickly as possible resulting to increase of income

GRADING

Eggs should be graded by size and labeled according to it weight. During selection and grading, care must be applied to ensure that weight is uniformed to avoid rejection from customers

POULTRY BUSINESS EVALUATION OF FARM/FINANCE

This evaluation is based on birds i.e. layers and broilers Layers are those birds that lay eggs while broilers don’t lay egg. This evaluation will be based on 5% normal loss i.e. at the process of taking care of the day old chicks; it is possible to lose 5% of the birds to sickness. Therefore if we start with 1000 birds, it is possible for us to lose 50 birds at the process of rearing them. While broilers if we start with 400 birds it is possible for us to loss 20 birds to diseases at the process of rearing them.

LAYERS

If layers are been rear, it takes 18 weeks to start laying egg, if we start with 1000 birds and we loss 5% of it so we have 950 surviving layers and with proper management of feeding and other maintenance of the bird it is possible to get 90% egg production that is 855 per day and 5985 pieces of egg every week. If we loss 1% of the egg that is 60 pieces every week so we have 5925 pieces p/weeks. 197 crates of eggs every week and crate of egg is sold accordingly to its size. Small size N500, Medium N600, Big size N700. Assuming we use medium size, that is N600 which result to N118500 sales of egg every week.
After laying eggs for 52 weeks (12months) we dispose the layer and it will be sold at the rate of N700 per layers
 
Therefore, before changing the stock we might have made N6,162,000 from sales of eggs and N665,000 from the disposal of old layers making a sum total of N6,827,000 for the period of 52 weeks (one year)

BROILERS

Broilers do not lay eggs but grows to table size when they are from 8 weeks old upward. We are project for 400 birds of broilers and if we have 380 surviving birds sold at the rate of N1,500 each, making a total sales of N570,000 for the period of rearing the broilers. Making it total sales of (570,000 x 3) N1,710,000 for period of 12 months. Total Sales expected for 12 months.
Layers                                                             N6,162,000
Broilers                                                           N1,710,000
                                                                        N7,872,000
 

CAPITAL EXPENSES

2 plots of land @ N150,000                               N300,000
Block 2000 pcs @ 110                                        N220,000
Cement 60 bags @ N1800                                 N108,000
Cement Carriage                                                   N3,000
Woods                                                                N151,700
Roofing Sheets                                                  N126,000
Roofing Slate                                                       N25,000
Ceiling Slate                                                         N15,000
Reggie’s                                                                  N7,500
Nails                                                                      N12,000
Net 15 bundles @ N4000                                     N60,000
Iron door                                                              N43,000
                                                                        N1,071,200
SANDS
Stone Big 2tipper @ N25,000                              N50,000
Sharp sand (Mayans)                                           N20,000
Soft Sand                                                             N22,000
                                                                             N92,000

TOOLS

Day old feeders 30pcs @ N120                          N3,600
Day old Drinker 15pcs @ N200                          N3,000
Feeders 60pcs @ N550                                      N33,000
Drinkers 12pcs @ N2500                                   N30,000
Shovel & Head pan                                             N2,000
Thermometer (Digital)                                        N8,000
Scale (Digital)                                                    N10,000
Geepee Tank 1500litres                                     N23,000
Geepee Tank 500 litres                                      N14,000
Nylon 7 pcs @ N700                                          N4,900

WORKMANSHIP

Carpenter                                                         N65,000
Bricklayer                                                         N80,000
Miscellaneous                                               N130,000
                                                                        N275,000
Business Registration                                    N20,000
 

PRODUCTION

1000 pullets @140                                          N140,000
400 broilers @ 130                                          N52,000
                                                                        N192,000
 

OPERATIONAL EXPENSES

Feeds, Vaccines & up keeps                           N1,330,000
Salaries and stationery                                    N240,000
                                                                        N1,570,000
 

SUMMARY

Capital expenses                                              N1,781,700
Operational expenses                                      N1,570,000
TOTAL EXPENSES                                           N3,351,700
 

TOTAL SALES FOR PERIOD OF 12 MONTHS

Layers                                                             N6,162,000
Broilers                                                           N1,710,000
                                                                        N7,872,000

PROFIT = SALES – EXPENSES

For layers during egg production, the expenses are half of sales of egg will go in for feeds and other operational expenses. i.e. N6,162,000 divide by 2
6162,000
      2                    =3,081,000
       
For broiler the cost of production till the birds reaches table size before disposition is between N900 to N1000. So therefore let put the bench mark to N1000. If N1140 broiler is sold at the rate of N1500
1,710,000 – N1140,000 = N570,000
The profit of layers for the period of 12 months = N3,081,000
The profit of broilers for the period of 12 months = N570,000
Total profit =             N3,081,000
for layer                  
  N571,000  
for broiler              N3,651,000

USING PAY BACK PERIOD

This method talks about the number of period that a business investment will pay back amount invested on it. It is usually shows the number of years it would take an investor to recover the initial cost of investment from the expected streams of cash flows. The payback period can be calculated as thus
PBP = Total Investment
Initial Capital
Using Payback Period of loan generating a profit of N3,651,000, 2 years and 8 months
 

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Similarly, it shows how much it will cost you to own your desired business, what your money can afford. The kinds of product you will need to minimize input in other to maximize output. Likewise, how much returns you will get at the end of each accounting year until your business break-even on its initial investment capital. Lastly, this will give the intending business person or investor or farmer, a vivid idea on the possible benefit he or she stands to gain, when he or she starts doing the business. However, the intending business person or investor or farmer will not need a soothsayer to make decision for him or her.

 

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