Bankable Project Report ON: NABARB - Poultry Broiler Farming
Bankable Project Report ON: NABARB - Poultry Broiler Farming
Bankable Project Report ON: NABARB - Poultry Broiler Farming
ON
NABARB - Poultry Broiler Farming
PREPARED BY:
FALGUNI .M. ACHARYA (01)
GUIDED BY:
1. Introduction
2. Scope for broiler farming and its national importance
India has made considerable progress in broiler production in the last three decades.
The broiler production has sky rocketed at an annual growth rate of about 10% and
stands at about 2.3 million metric tons of chicken meat (FAO 2005).The population
of broiler poultry as per 2004-05 census is 199.73 million.
Today India is the fifth largest producer of broiler meat in the world. Despite this
achievement the annual per capita consumption in India is only 1600 grams of
poultry meat as against the world average of 5.9 kg of meat.
Recommended per capita consumption of chicken meat by National Institute of
Nutrition is 11 Kg.
There is a growing trend of integration in broiler farming. In the early nineties, contract
farming for broilers was introduced and in 1995 it spread all over Tamilnadu. Between
1995 and 2000, it spread to Karnataka. It gathered momentum and spread its wings to
Maharashtra, Andhra Pradesh in the years 2001 & 2002 and after that, it gained inroads
into West Bengal and Gujarat.
The spread is due to built in strengths in integration system. Integrators will take care of
all aspects of production, right from raising of grandparent and parent flocks, production
of day old chicks for rearing, manufacturing and supply of concentrate feed, providing
veterinary services and wholesale marketing of birds.
Under integration all the previous profit centres of the broiler industry viz. chick selling,
feed selling, hatching, medicine supply, transportation have become cost centres for the
integrators who work as a single entity and distribute the benefits among the farmer,
consumer and the integration company themselves. Under contract farming, poultry
farmers invest only for poultry sheds / equipment on their existing land. The Integrator
supplies chicks, feed, medicines, provides technical guidance and takes entire production
after 5-6 weeks.
The contract farmers are paid growing charges as per agreed rates. This has eliminated the
middlemen. Farmer is benefiting from the lesser investment and production cost and also
higher productivity which is achieved as a result of integration.However, the farmer may
be at a disadvantage if the number of batches supplied in the year by the integrator is less.
For poultry farming schemes with very large outlays detailed project reports are required
to be prepared. The items of finance would include construction of broiler sheds and
purchase of equipment, cost of one day old chicks, feed, medicine and labour cost for the
first cycle.
Cost towards land development, fencing, water and electricity, essential servant’s quarters,
godowns, transport vehicles, broiler dressing, processing and cold storage facilities can
also be considered for providing loan. Cost of land is usually not considered for loan.
5.1 A scheme can be prepared by the promoter after consulting local technical persons of
State Veterinary / Animal Husbandry department, Poultry Corporation or private commercial
broiler hatcheries. If possible, they should also visit the progressive broiler farmers in the area
and discuss the profitability of farming.
A good practical training and experience on a broiler farm will be highly desirable, before
starting a broiler farm. As broilers have to be sold within 35 to 40 days of age, regular and
constant demand for broiler meat and nearness of the farm to the market should be ensured.
5.2 The scheme should include information on land, water and electricity facility, marketing
aspects, training facilities, expertise of entrepreneurs and the type of assistance available from
State government, Poultry Corporations, local hatcheries. It will also include data on
proposed capacity of the farm, total cost of the project, margin money to be provided by
beneficiary and requirement of bank loan, estimated annual expenditure, income and profit
and the repayment of loan and interest.
A format developed for project report preparation for a commercial broiler farm is
given in Annexure -I
The bank officers can also assist in preparation of the scheme or filling in the prescribed
application form. The scheme so formulated should be submitted to the nearest branch of the
bank.
The bank will then examine the scheme for technical feasibility and economic viability.
(c) Infrastructure and other facilities available for supply of inputs, veterinary aid, marketing
etc., and training/experience of the beneficiary
(b) Input cost for chicks, feed, veterinary aid, labour and other overheads
(c) Output cost i.e. sale of broilers, manure and other miscellaneous items.
(f) Repayment schedule i.e. repayment of principal loan amount and interest
Other documents such as loan application form, security aspects, margin money requirements
etc. are also examined. A field visit to scheme area is undertaken for conducting techno -
economic feasibility study for appraisal of the scheme
After ensuring technical feasibility and financial viability, the scheme is sanctioned by the
bank. The loan is disbursed in kind in 2 or 3 stages, against the creation of specific assets,
construction of sheds, purchase of equipment and machinery, recurring cost on purchase of
chicks, feeds, medicines, etc. The end use of the loan is verified and constant follow up is
done by the bank.
8.1 Outlay :
Outlay of the project depends on the local conditions, unit size and the components included
in the project. Prevailing market prices may be considered to arrive at the outlay.
Margin depends on the category of the borrowers and range from 5 to 25%.
Banks are free to decide the interest rates within overall RBI guidelines. However, for
working out financial viability and bankability of model project, we have assumed rate of
interest as 12% p.a.
8.4 Security:
Security will be as per NABARD / RBI guidelines issued from time to time.
The loan repayment is determined, on the basis of gross surplus generated in the scheme.
Usually the repayment period of loan for broiler farming is 6 to 8 years.
8.6 Insurance:
The birds and other assets (poultry shed, equipment) may be insured. Wherever necessary
Risk/Mortality fund may be considered in lieu of poultry insurance.
Annexure I
1. GENERAL
(b) Experience
2. TECHNICAL ASPECTS:
a) Location, Land and Land Development:
b) Civil Structures:
- Broiler Sheds
- Store room
- Dressing room
- Office room
- Others
(i) Feeders
(ii) Waterers
(iii) Generator
(v) Debeaker
(vi) Vaccinator
d) Housing:
e) Birds:
i) Proposed strain
f) Production parameters:
h) Feeding:
ii) If purchased
a) Place of purchase
b) Brand
c) Cost ( /kg)
- Starter
- Finisher
c) Feed formula
- Starter
- Finisher
- Starter
- Finisher
i) Veterinary aid:
i) Source
ii) Location
b) Periodicity of visit
j) Electricity
k) Water
i) Source
l) Marketing of broilers
i) Source of sale
n) Beneficiary's experience
3. FINANCIAL ASPECTS :
i) Project Cost
1 Capital Costs
3 Recurring Costs
4 Total Recurring Costs (B)
iii) Financial viability ( comment on the cash flow projection on a farm model / unit and
enclose the same ) Particulars :
a) Profitability ratio
c)Whether Income tax & other tax obligations are paid upto date
d) Whether audit is upto date (enclose copies of audited financial statements for the last three
years)
v) Lending Terms :
a) Rate of interest
b) Grace period
c) Repayment period
d) Nature of Security
e) Availability of Government guarantee wherever necessary
4. INFRASTRUCTURE FACILITIES:
b) Details of
i) technical guidance
Annexure II
Capital Cost
Total 136000
Recurring Expenditure
Cost of day old chicks 21000
Total 88104
or say 224000
Techno Economic parameters
Margin (%) 15
Flock Chart
Years 1 2-8
No. of batches 7 7
Rearing weeks 40 42
Batches sold 6 7
Years 1 2-7 8
IRR 43.77%
E. Repayment Schedule
Year Loan Gross surplus Interest Principal Total repayment Net surplus
REFERENCES
https://www.nabard.org/english/Home.aspx
http://www.livestrong.com/article/4690644-nabard.org/
http://eductionportal.com/articl/poultryboiler_farming.html/
http://www.google.co.in/