SHREE LUBHU SEONDARY

SCHOOL
BUSINESS PLAN OF POULTRY FARM

Submitted By:
Suman Gamal Submitted To
Roll No. 20 Rabin Singh
 TABLE OF CONTENTS
1. Executive summary
2. Background
3. Objectives
4. Market
4.1 Market needs
4.2 Market segmentation
5. Preliminary work
6. Keys to success
7. Mission
8. Company summary
9. Management
10.Start-up summary
10.1 The start-up expenses
10.2 Required start-assets
10.3 Requirements of poultry farming
10.4 Acquisition of materials
11. Marketing and Distribution
12.Preparation and disinfection of shed
12.1 Vaccination and Medication
12.2 Litter management
12.3 Brooding and Rearing
12.4 Lighting management
13. Plan of work
14. Business risks
15. HUMAN RESOURCE REQUIREMENT
1. EXECUTIVE SUMMARY
This profile envisages the establishment of a plant for the production of poultry feed with a
Capacity of 3500 tons per annum. poultry feed is a kind of balanced livestock feed which
aids proper development of chicks and pullets and hence used for feeding the domesticated
birds such as chickens turkeys, ducks, etc.

The country’s requirement of poultry feed is met through local production. The present
(2012) demand for poultry feed is estimated at 25,749 tons. The demand for the products is
projected to reach at 34,453 tons and 41,889 tons by the year 2022 respectively.

The total investment cost of the project including working capital is estimated at birr 9.81
million. From the total investment cost the highest share (birr 4.53 million or 46.19 %) is
accounted by initial working capital followed by fixed investment cost (birr 4.42 million or
45.09%) and pre operation cast (birr 855.60 thousand or 8372 %). From the total investment
cost birr 1.7 million or 17.33 % is required in foreign currency .

The project can create employment for 29 persons. The project will create backward linkage
with the agricultural and Argo processing sectors and forward linkage with the livestock
sector and also generates income for the Government in terms of tax revenue and payroll
tax.

2. BACKGROUND
 More than 60 % of total meat consumption in the country was met by the export from other
countries.
 National production fulfilling only the 40 % of the demand.
 In this scenario, poultry farming has got a huge potential in Nepal.
 Putting this scenario into consideration, we decided to capitalize this opportunity to serve
the people and to make the country self-dependent in the poultry products.

3. OBJECTIVES
 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
campaigns in the first one year.

4. MARKET
There are a wide scope and marketing opportunities for poultry farming in Nepal. The
marketing of poultry is also increasing daily due to the change in eating meat and eggs.
Nepal has an annual production of 114,058 tons, while egg production is 1.20 billion per
year. A Nepali eats 4.1 kg per hen and 44 eggs annually.
4.1 Market needs
The poultry industry in Nepal has emerged as the most dynamic and fastest expanding segment in
animal husbandry sector. There has been a phenom enol growth in the Nepalese poultry industry in
the last 3 decades. There contribution of agriculture to GDP is 38.15 % and the contribution of
livestock to AGDP IS 27.66 % (MOAC, 2006). The net meat production during the year 2006/2007 was
2,27,105 metric ton out of which the distribution from chicken was 1,61,261 metric ton (MOAC
2006/2007)

 Average per-capita consumption of poultry meat and eggs stands at 9 kg and 120 pieces.
 Commercial poultry farming is growing at a rate about 15 % per annum.
 Broiler live chickens per year =56.1 million
 Annual egg production = 714.6 million.
 Over 2,500 poultry throughout the country.
 > NPR 16 billion invested in poultry business

4.2 MARKET SEGMENTATION
 Focus the highly acclaimed slaughters house which supply meat to the various class of customers.
 Target groups would be the high-end customers vying for the best possible chicken.
 We want to displace the import of chickens from all Nepal.

5.PRELIMINARY WORK
 1000 chickens would be optimum for the initial operation of the business.
 Production site: Lalitpur.
 Plenty open space, cheap labors, road connection, water availability and immediate access
to Kathmandu valley.
 Feasibility study by the experts shows positive results.
 An area of about 10,000 sq. feet for the farm.
 House with 3 room rented for the storage of pellets, equipment as well as for the employees
to guard the farm.
 The land leased for 10 years with options of extension.
 Initial investment Rs.10,00,000
 Three lakhs from each partner and rest as loan.
 Buying chickens, building cage house, stocking the expert and other miscellaneous tasks.
 50 % gross margin expected within 6 months of its operations with holding the chances of
any accidental or unexpected incidence.
 Loan repayment within 3 years and obtain the breakeven point within 2 years.

6. KEYS TO SUCCESS
 State of art cage framework accommodating optimum number of chickens with mitigated
possible hazards.
 Diverse slaughters network, market chain management, optimum inventory level and
customer is king policy.
 Regular visits by medical workers and hygienic poultry house environment.

7. MISSION
Rato Bhale poultry producer will make its best effort to live up to the consumer’s
expectations by delivering the best of its product to the end users. The nutritious and
protein rich product from out farm would always be the first choice of our consumers.

8. COMPANY SUMMARY
 Limited liability company, producing chickens, eggs and litter as a by-product in its state of
art poultry farm units.
 Status: small and cottage industry.

Ownership structure
The company would be jointly owned by Mr. suman Gamal and Mr. Umesh B.C. it would be a
partnership enterprise with each of the owners holding 50-50 % of the share.

9. MANAGEMENT TEAM

 Energetic and able managers cum owners.

 Mr. Suman Gamal as the General manager and also responsible for the sales, marketing and
operation department.
 Mr. Umesh BC responsible for the HR, finance and public relation department.
 Advisory board consists of dignified personalities like Mr. Sushil pant, Dr. Shyam maskey and
different experts in the field .

10. START–UP SUMMARY

10.1 THE START-UP EXPENSES
 Hiring advisors and technical experts Rs. 10,000.
 Brand development Rs.5,500: Brochures and pamphlets (3,000 pieces at Rs.0.1 per copy)
total amount Rs.5,700.
 Insurance coverage at a total premium of Rs.4000.
 Pre-paid rent six month at Rs 1 per sq. ft. totaling Rs. 60,000.
 Battery style cage structures build up of Rs. 2,000.
 Transportation Rs. 2,000 phone and utility deposits Rs.2,000
 Stationeries and office supplies – Rs.300

10.2 REQULRED START-UP ASSETS

 Operating capital Rs. 45,000: salary of unskilled labors (2*4,000). Technician’s salary of
Rs.7,000 for the first months and cash reserves for the first three months of operation
(approx. Rs. 10,000/month).
 Bank balance Rs.3,82,000.
 Start-up inventory Rs.95,000, includes.
 Broiler chicks (1000 heads @Rs.30/head)-Rs.30,000.
 Pellet balls (30 quintals @Rs. 3,000/qntl )-Rs.90,000.
 Protein supplements, vitamins and antibiotics -Rs.5,000.
Equipment and machineries
 Nets, baskets, buckets, tillers and misc-Rs.17,000.
 Heating, lighting system and pellet machine -Rs.40,000.
 Farm house building -Rs.200,000.
10.3 REQULREMENTS OF POULTRY FARMING
Site selection:
 Link with motor able road.
 Abundant water supply.
 24-hour electricity and all-around communication facility.

Shape and size:

 We can start with any amount of fund and infra-structures.
 Chicken can be even brought up in households feeding over spillover foods and other
wastes.
 Optimum number of chickens and corresponding size of the farm should be considered
provided with abundant resource of pellets.
 10.4 ACQUISITION OF MATERIALS
 Raw materials should always be available and stock should be plenty as chickens cannot
survive much without food.
 Pellets bought in big lots provide economies of scale.
 Protein rich supplements, antibiotics and vitamins should also be given in regular basis.
 Required amount of feed and day-old chicks will be imported.

11. MARKETING AND DISTRIBUTION

 Poultry farms, with the broilers, won’t make profits if the finished products i.e., hen are not
taken to the market after specified time normally 6 weeks.
 After 6 weeks the hens won’t convert the feeds into flesh so , it would be unproductive to
hold them any longer .

12. PREPARATION AND DISINRECTION OF SHED

 Floors ,interior of the walls and roof will be scrubbed remove litters .
 Dust from pens will be washed with fresh water and battery brooders will be disinfected
using 5 % phenol solution, followed by spraying of 3 % solution of Karolin (disinfectant)
inside and outside the shade.

12.1 VACCINATION AND MEDICATION

To maintain health of poultry, timely vaccination and medication by vet nary will be done.

12.2 LITTER MANAGEMENT

 Rice husk will be used as litter by maintaining 5 cm thick on floor.
 The litter will be stirred twice in a week to prevent watery.
 Wet litter will be removed dry will be replaced. Before placing the litter in poultry house,
dust lime will be used as disinfectant.

12.3 BROODING AND REARING

 After receiving of chicks of chicks they will be put in pre-heated brooder with proper
temperature of 90 to 95 degree Celsius with adequate dry litter.
 The temperature is maintained as below.
 Age temperature (°F)
 1st week 95
 2nd week 90
 3rd week 85
 4th week 80
 5th week 75
 6th week 70

12.4 LIGHTING MANAGEMENT

Brooder house will be provided with 24-hour light throughout the growing period with one
60-watt bulb for each 200.sq. feet of floor space.

FLOOR SPACE:
81 sq. inch per bird be provided.

VACCINATION:
Broiler will be vaccinated as follows:
Age days of vaccination
One day Marek or F1 vaccine
14th day Gambaro intermediate
26th day Ranikhet F1 or Lakota.
28th day Gambaro intermediate
 13. PLAN OF WORK
Month Work Schedule
 January 15th day-shed preparation
 20th day-disinfection of shed
 25th day – buying of chicken
 February 1st day -ration feeding: live weight
 March similar as February calendar
 April Selling in market and consumption

14. BUSINESS RISKS

Financial Risks
 Changes in our owe or competitors pricing policies.
 Fluctuations in expected revenues from distributors, retailors and strategic partners
 Timing of costs related to acquisitions or payments.

Legislative/Legal landscape
 Malpractice and other related liability.
 State regulations on quarantine, insurance and the practice of medicine.
 Storage, transmission and disclosure of firm’s information and hygiene records.

14. FINANCIAL PLAN

 The owners have provided the company with sufficient start-up capital.
 With successful management aimed at establishing and growing a loyal customer base, the
company will see its net worth doubling in two years.
 Rato Bhale will maintain a healthy 50 % gross margin, which combined with reasonable
operating expenses, will provide enough cash to finance further growth.
Sales Forecast

Year 1 Year 2 Year 3

sales Rs.13,00,000 Rs.14,00,000 Rs.15,00,000
chickens Rs.2,00,000 Rs.200,000 Rs.3,00,000
Rs.15,00,000 Rs.16,00,000 Rs.3,00,000
Total sales Rs.15,00,000 Rs.16,00,000 Rs.18,00,000

Direct cost Year 1 Year 2 Year 3

of sales
Chickens Rs.7,80,00 Rs.8,40,000 Rs.9,00,000
0
Eggs Rs.104,000 Rs104,000 Rs.2,10,000
Total Direct Rs.8,84,00 Rs.9,44,000 Rs.11,10,000
cost 0
15. HUMAN RESOURCE REQUIREMENT
The total human resource of the envisaged project is 29 persons. Details of the human
resource requirement.

HUMAN RESOURCE REQUIREMENT

S. N JOB TITLE REQUIRED NO OF
PERSONS
1 General manager 1
2 Secretary 1
3 Technical and production 1
manager
4 Finance and administration 1
manager
5 Commercial manager 1
 6 Purchaser 1
7 Accountant 1
8 Personnel 1
9 Salesperson 1
10 Store keeper 1
11 Cashier 1
12 Shift leader 3
13 Mechanic 3
14 Electrician 2
15 Operator 10
Total 29