BROILER FARMING PROJECT. lity is regarding Broiler Farming. M/S Institute for Industrial development A unit of. M/S Samadhan Samiti. Lucknow.

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Stuart Norton
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PROJECT REPORT BROILER FARMING PURPOSE OF THE DOCUMENT This particularr pre feasibii lity is regarding Broiler

identification for investment and in order to serve this objective; the document covers various aspects of the

capacity and project cost as per your requirement.

.] Prepared By: M/S Institute for Industrial development A unit of M/S Samadhan Samiti 27/1/B Gokhle Marg Lucknow

1 PROJECT REPORT BROILER FARMING PURPOSE OF THE DOCUMENT This particularr pre feasibii lity is regarding Broiler Farming The objective of the pre feasibility is primarily to facilitate potential entrrepreneurs in project identification for investment and in order to serve this objective; the document covers various aspects of the project concept development, startup, marketing, and finance and business management [We can modify the project capacity and project cost as per your requirement. We can also prepare project report on any subject as per your requirement..] Prepared By: M/S Institute for Industrial development A unit of M/S Samadhan Samiti 27/1/B Gokhle Marg Lucknow Social Media : Youtube: Facebook: Twitter: Website:

2 Broiler Production Introduction Poultry is an important source of protein patronized by most people irrespective of their religious backgrounds. Poultry species commonly raised for commercial purposes in Ghana are fowls/chicken, categorized as broilers and layers for meat and egg production respectively. Broiler production Broilers are birds kept purposely for meat. They are fast growing and mature between 6-8 weeks. Scope for broiler farming and its national importance India has made tremendous progress in broiler production during the last three decades and the broiler population in the country during stood at 2300 million. Today India is the fifth largest producer of broiler meat in the world with an annual production of 2.47 million MT. Despite this achievement, the per capita availability of poultry meat in India is only 2.96 kg which is way below the ICMR recommendation of 11 kg meat per capita per annum. The growth of the poultry sector is mainly attributed to the interventions of the corporate sector with an enabling policy environment provided by the Government of India / State Governments from time to time. The activity provides huge employment opportunities for the rural poor either under Backyard poultry production system or under small scale commercial broiler farming units. Over 5 million people are engaged in the poultry sector either directly or indirectly. Management of Broilers Commercial broiler production is commonly managed under intensive system. The preferred housing is the deep litter. Floor Space Requirement for Birds. broiler Age in weeks Ft.sq/bird m.sq/bird Birds/m.sq Starter finisher

3 Waterer space (water trough) Chicks require cm/chick ( inches) of trough space. As chicks grow, that is from 4 weeks the space must be increased to 2cm/bird (0.8inches) of trough space. Feeder space (feed trough) Chicks require 5cm (2inches)/chick of trough space. As chicks grow, the space must be increased to 7.6cm. (3 inches) of trough space per bird. How to prepare for chicks Chicks are brooded for a period of 2-3 weeks in a hygienic environment to avoid infections. Steps to follow Clean and disinfect the brooder house 1-2 weeks before birds arrive Wash and disinfect water/feed troughs and brooder guard Clean and remove weeds and debris outside the house How to receive chicks The floor of the house must be covered with wood shavings 3 days before chicks arrive Place brooder guard around the source of heat few hours before chicks arrive The house must be preheated at a temperature of 31 o -33 o c (90 o -95 o F) about 3-4hours before chicks arrive (gas or electric brooders are recommended) this should be reduced gradually to 21 o c by 3 weeks of age. Two of 150 watts incandescent bulbs are recommended for a floor space of 4.95sqm. (53.28sqft.) suspended at 0.3 m. (1ft) from the floor level. Fill waterers with clean water and place in the house 3-4 hours before chicks arrive. Provide feed on flat pans about I or 2 hours after the chicks have taken some water. Raising of birds Birds are transferred from the brooder house to the growing house/pen at 2-3 weeks of age. Feeding Regime There are two types of feed for broilers; broilers starter from day old to 4 weeks and broilers finisher. Vaccination Regime vaccination Age 1 st Newcastle disease 2 nd week Gumboro disease Fowl pox 3 rd week 4 th week 2 nd Newcastle disease 6 th week

4 The advantages of broiler farming are a) Initial investment is lower than layer farming b) Rearing period is 5-6 weeks only c) More number of flocks can be taken in the same shed d) Broilers have high feed conversion efficiency i.e. the amount of feed required for unit body weight gain is lower in comparison to other livestock e) Faster return from the investment f) Demand for poultry meat is more compared to sheep/goat meat Technical Deatails to be Considered: a. Land and land development (Location, area, suitability, proximity to road, site map etc.) b. Proposed capacity / farm size c. Civil structures (Sheds, feed mixing unit, dressing unit, godown, / store room, office quarters, staff room etc.) d. Equipment and Plant and Machinery (Feeder, waterer, feed grinder and mixer, deep freezer, dressing equipment etc.) e. Housing (Capacity, Type- Deep Litter / Environment controlled, Area required, system of housing etc.) f. Chicks (Strain, number of birds / batch strength, source of chicks, vaccination of chicks etc.) g. Feeding (Feeding requirement, source of feed, type of feed starter, finisher etc., price of feed etc.) h. Availability of utilities Water, power and fuel i. Veterinary aid and transport arrangements j. Production parameters (Average weight in kgs, Feed conversion ratio- FCR, Mortality ect.) k. Flock Projection chart l. Marketing (marketing of broiler/ meat and other products /by-products place of marketing, basis of payment(kg or no.), price per unit etc.) m. Scope of integration or contract farming

5 Compnay Address Details of Means of Finance and Application of Funds towards Birds Broiler Farming Application of Funds Amount (Rs in Lacs) A Land Owned B Building Modification & Other Civil Work C Plant & Machinery 9.00 D Other Fixed Assets 2.00 G Working Capital required Total Means of Finance Amount A Promoter's Contribution/Unsecured Loan B Term Loan from Bank C Cash Credit Limit 8.50 Total 42.40

6 BALANCE SHEET ( Rs. in lakh ) LIABILITIES I II III Iv V VI Capital Profits SECURED LOAN Term Loan From Bank Cash Credit Limit From Bank CURRENT LIABILITIES & PROVISIONS Other Liabilties and Provisions TOTAL ASSETS FIXED ASSETS(Machinery & Equipment) Gross Block Less: Depreciation CURRENT ASSETS,LOANS & ADVANCES Cash and Bank Balance Inventory Loans & Advances TOTAL

7 Compnay Address PROJECTED PROFITABILITY STATEMENT (Rs.in lakh) INCOME I II III IV V VI Sales of Broilers Sales of Manure Total COST OF SALES Purchase of Chicks Feeding Expenses Vaccination & Medication Charges Husk Expeses Power & Fuel Expenses Cost of Materials consumed Add: Opening Stock Less: Closing Stock Cost of Sales GROSS PROFIT INDIRECT EXPENSES Salary, Wages & Other Employee Benefits Selling & Adm Expenses Finance Cost:- - - Interest on CC Limit Interest on Term Loan Depreciation TOTAL (D+E) NET PROFIT CASH ACCRUAL

8 ASSUMPTIONS OF POULTRY FARMING BUSINESS No of Chicks Per Batch No. of Days required per cycle per batch 35 No of Days Left Empty For Cleaning and Pesticides Total days in a year 365 Maximum Capacity/Batches Per Year 7 Mortality Rate (As per Seller of Chicks) 2% Mortality Rate Other than Chicks Provided by Seller 1% Output Per Batch 9894 Total Broiler Chicken at Maximum Capacity Notes As the Mortality rate is 2%,the Seller of Chicks would provide the chicks 2% extra i.e for every order of chicks,10200 chicks will be provided and buyer needs to pay for chicks. 2 Total Mortality is expected to be 3% Start Of Production April 2018 Stock In Process (Eight Input) 4/1/2019 First Input Of Chicks 4/1/2018 Eight Output Of Chicks 5/1/2019 First Output 5/6/2018 Ninth Input 5/21/2019 Second Input 5/24/2018 Ninth Output 6/25/2019 Second Output 6/28/2018 Tenth Input 7/13/2019 Third Input 7/15/2018 Tenth Output 8/17/2019 Third Output 8/19/2018 Eleventh Input 9/3/2019 Fourth Input 9/5/2018 Eleventh Output 10/8/2019 Fourth Output 10/10/2018 Twelth Input 10/24/2019 Fifth Input 10/26/2018 Twelth Output 11/28/2019 Fifth Output 11/30/2018 Thirteenth Input 12/15/2019 Sixth Input 12/15/2018 Thirteenth Output 1/19/2020 Sixth Output 1/19/2019 Forteenth Input 2/5/2020 Seventh Input 2/5/2019 Forteenth Output 3/11/2020 Seventh Output 3/12/2019 Fifteenth Input 3/26/2020 Eighth Input 3/27/2019 Fifteenth Output 4/30/2020 (Next Year) Eight Output (Next Year) 5/1/2019 Total Inputs During First year 8 Batches Total Inputs During IInd year 7 Batches Total Output During First Year 7 Batches Total Output During Iind Year 7 Batches Stock In Process 1 Batch Stock In Process 1 Batch Notes Maximum 7 Batches will be produced in a year and days related to cleaning and pesticides will be managed accordingly to keep it to minimum of 14 days

9 COMPUTATION OF WORKING CAPITAL REQUIREMENT Item Name Oty Per Batch Rate (In Rs) Total Cost (Rs in Lacs) Chicks 10, (20*10000) (Against which Payment to be Made for Chicks per batch considering Mortality of 2%) Feed (3.25 Kgs For 2 Kg Bird) 33, (10200*25*3.25) (Per Kg) Vaccination & Medication Expenses 10, Cost of Husk(0.30 Kg Per Chick) 3, (Per Kg) Total Direct Cost Per Batch 9, (Output After 3% Mortality) Less :Margin 25% 2.97 Working Capital Required 8.92 Bank Finance Demanded 8.50 Traditional Method Particulars Total Amount Stock in Hand Less : Creditors - Net Paid Stock Sundry Debtors - Net Assets Margin 25% 3.00 Permissible Finance 9.01 Working Capital/Demand Loan Required 80.00

10 CASHFLOW STATEMENT( New Poultry Farming Business) (Rs. In Lacs) INFLOW I II III IV V VI INTERNAL ACCRUAL CAPITAL CONTRIBUTION TERM LOAN CASH CREDIT LIMIT INCREASE IN OTHER LIABILITIES AND PROVSIONS TOTAL OUTFLOW FIXED ASSETS REPAYMENT OF TERM LOAN INCREASE IN STOCK INCREASE IN LOANS AND ADVANCES TOTAL NET SURPLUS/(DEFICIT) Opening Balance Total Cash Flow Less: Withdrawls Closing Balance

11 TERM LOAN ACCOUNT ( Rs. in lakh ) YEAR DAYS PRODUCT INTEREST LOAN LOAN BALANCE INTEREST LOAN REPAID SANCTIONED REPAID PRINCIPAL (YEAR WISE (YEAR WISE 11.00% Ist nd rd th th Page 7 of 10

12 YEAR DAYS PRODUCT INTEREST LOAN LOAN BALANCE INTEREST LOAN REPAID SANCTIONED REPAID PRINCIPAL (YEAR WISE (YEAR WISE 11.00% th Page 8 of 10

13 COMPUTATION OF RAW MATERIAL, SALES & CLOSING STOCK Raw Material Requirement Per Batch Item Name Oty Per Batch Rate (In Rs) Total Cost (Rs in Lacs) Chicks 10, (20*10000) (Against which Payment to be Made for Chicks per batch considering Mortality of 2%) Feed (3.25 Kgs For 2 Kg Bird) 33, (102000*25*3.25) (Per Kg) Vaccination & Medication Expenses 10, Cost of Husk(0.30 Kg Per Chick) 3, (Per Kg) Total Direct Cost Per Batch 9, (Output After 3% Mortality) Sale Price of One 2 Kg Broiler Chicken 9, (per Kg) Gross Profit Per Batch Cap. Utilization No Of Batches Opening Stock of Chicks - 10,200 10,200 10,200 10,200 10,200 Chicks Purchased 81,600 71,400 71,400 71,400 71,400 71,400 81,600 81,600 81,600 81,600 81,600 81,600 Chicks Consumed/Used 71,400 71,400 71,400 71,400 71,400 71,400 Less:- Mortality (2%+1%) 2,142 2,142 2,142 2,142 2,142 2,142 Broiler Chicken Produced 69,258 69,258 69,258 69,258 69,258 69,258 Closing Stock of Chicks 10,200 10,200 10,200 10,200 10,200 10,200 Purchase Price Per Chick Total Purchases (Against which Payment to be Made for Chicks per batch considering Mortality of 2%) Cost of Feed Per Kg (3.25 Kg to be used for per chick) Total Cost of Feed Cost of Vaccination & Medication Per Chick Total Vaccination & Medication Expenses Cost of Husk Per K.g (0.30 Kg to be used for per chick) Total Husk Expenses Total Direct Cost of one Batch Sales price per K.G Total Sales (In Lacs) Sale of Manure (Price per K.G) (0.50 Kg Manure per chick) Value of Closing Stock

14 Working of Break Even Analysis (Poultry Farm Business) I II III IV V VI Sales of Broilers Sales of Manure Variable Cost :- Cost of sales Salary, Wages & Other Employee Benefits 80% variable Selling & Adm Expenses 80% variable Total Variable Cost : Fixed Cost :- Salary, Wages & Other Employee Benefits 20% Fixed Selling & Adm Expenses 20% Fixed Interest on CC Limit Interest on Term Loan Depreciation Total Fixed Cost Contribution = Sales - Variable Cost Break Even Point Total Fixed Cost / Contribution Break Even Sales Debt Service Coverage Ratio (DSCR) I II III IV V VI Net Cash Accrual Interest on TL Installment on TL DSCR = (Net Cash Accrual + Interest on TL) (Installment of TL + Interest on TL) Average DSCR 2.09

CONTENT. I. Project at a Glance. A Small write up about the Project & Promoters Back Ground. Project Implementation Schedule. Financial Statements

CONTENT. I. Project at a Glance. A Small write up about the Project & Promoters Back Ground. Project Implementation Schedule. Financial Statements CONTENT I. Project at a Glance II. III. IV. A Small write up about the Project & Promoters Back Ground Project Implementation Schedule Financial Statements FINANCIAL ANALYSIS 1 Details of Project 2 Projected