Introduction:

Namu Namu Nigerian Enterprises is an indigenous enterprise that plans to go into the business of Poultry Farming with primary focus on the following; I. Broilers II. Layers III. Commercial Eggs Our plan is to achieve a maximum production level of 10,000 broilers monthly and a 15,000 egg production level daily in 10 months within the first years, as phase 1 of the plan. We propose starting with 10,000 broilers per batch on a 4 times production cycle. The Layers will be started with a first set of 10,000 in month 1 and another set of 10,000 in month 2 in order to achieve continues egg production throughout the year. Our target markets are the hotels, fast food outlets and discount department stores that have good credit ratings and reputation for prompt payment. These will include; Mr Biggs Chicken N Fries Amigo Supermarket Sheraton Hotels and Towers And a selected few POULTRY INDUSTRY IN NIGERIA: The poultry industry which has the potential of bridging the protein deficiency gap in Nigeria through the production of meat and egg has in recent, witnessed a lot of development owing to favorable government policies such as the ban on importation of poultry products, government special emphases on agriculture in forms of grants, low interest rate loan packages, subsidies and special insurance covers by Nigeria Agricultural Insurance Cooperation (NAIC) on agricultural projects by Nigerians. The industry is estimated to worth over N1.5bn and growing.

VISION STATEMENT: Our vision is to be among the top ten leading poultry product suppliers in the Nigerian poultry market. MISSION STATEMENT: To provide good, healthy and affordable poultry products for our valued customers.

EQUIPMENT & HOUSING NEEDED FOR MANAGING 30,000 BIRDS:

S/ no . 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 . 11 . 12 . 13 . 14 . 15 . 16 . 17 . 18

Equipment

Qty

Unit Cost N 250.00 250.00 300.00 600.00 600.00 300.00 500.00 300.00 3000.00 2000.00 1200.00 35000.00 00.00

Total Cost N 7,500.00 7,500.00 9,000.00 3,600.00 3,600.00 1,800.00 25,000.00 9,000.00 6,000.00 20,000.00 7,200.00 105,000.00 00.00 96,000.00 800.00 7,000.00 400.00 10,000.00

Chick tray feeders Chick trough feeders Chick drinkers Buckets Shovels Bowls Adult drinkers Lanterns Wheel Barrows Rain Boots Rubber Gloves Deep Freezers Saw dust Trampoline Wooden planks Scale (20 kg) Disposable nose guards Crates

30 60 30 6 6 6 50 30 2 10 6 3

1200 yds 10 2 2 500

800.00 80.00 3500.00 200.00 20.00

. 19 . 20 . 21 . 22 . 23 . 24 . 25 . Debeaking scissors Thermometer Metal rakes Construction of Pens Houses Construction of office & store Drilling of Borehole & Water Tank Miscellaneous 2 6 3 8 2 1 50.00 1200.00 150.00 110,000.0 0 120,000.0 0 150,000.0 0 100,000.0 0 TOTAL 100.00 7,200.00 350.00 880,000.00 240,000.00 150,000.00 100,000.00

1,697,050. 00

Labour Requirements: S/ no . 1. 2. 3. 4. Requir ed No. 1 1 4 1 Labour/Job Description Monthly Cost (Naira) N 20,000.00 N 15,000.00 N 10,000.00 N 8,000.00 Annual Cost (Naira) 240,000.0 0 180,000.0 0 120,000.0 0 96,000.00

Veterinary Doctor on Retainership Farm Manager/ Bird Administrator Farm Attendants/Cleaners Store Keeper

5.

Security Guards

N 8,000.00 Total

96,000.00 732,000.0 0

Purchase of Birds:

S/ no . 1. 2.

Bird Type

Qty

Unit Cost (Naira) 200.00. 00 200.00. 00

Total Cost (Naira) 2,000,000.0 0 4,000,000.0 0

2 Weeks Brooded Broilers 2 Weeks Brooded Layers

10,0 00 20,0 00

Total

6,000,000.0 0

Feed Programme for 10,000 Broilers to average weight of point of sale: Week s Old/ Age 2 3 4 5 6 Feed Type Feed Consumption (KG) 20,000 23,000 26,000 35,000 44,000 Average Weight (KG)

BS BS BS BF BF

0.04 0.15 0.23 0.48 0.87

7 8 9 10 11 12

BF BF BF BF BF BF

50,000 56,000 70,000 70,000 74,000 76,000

1.30 1.70 2.10 2.30 2.50 2.70

TOT AL

556,000

Note:BS = Broiler Starters BF = Broiler Finisher 25 kg bag of poultry feeds is sold for N1, 350.00.

To determine the total cost of feeds consumed by 10,000 broilers within the 11 weeks they have been fed by us, we have;

Total feed consumed (KG) Weight of 1 bag of feed (KG) Total feeds consumed by 10,000 broilers = 5,560,000 kg Weight of 1 bag of feed = 25 kg = 556,000 25 = 22,240 bags Therefore:

Cost of 22,240 bags = 22,240 X 1,350 = N 30, 024, 00 Considering a 5% mortality rate for the broilers = 0.05 X 10,000 = 500 Therefore: 10,000 500 = 9,500 boilers Current market value per kilo @ N 450 per 1 kg = 1 chicken 2.7 kg Therefore: 2.7 X N 450 = N1, 215 = 1 chicken @ N1, 215 N1, 215 X 9,500 (total no. of chickens) = N 31,164,750

Estimated income on sales of 9,500 broilers = N 31,164,750

Feed Programme for 10,000 Layers to point of lay: Wee ks Mon ths 2 3 4/1 m 5 Feed Type Feed Consumption (KG) 20,000 23,000 26,000 35,000 Remarks Weight

SF SF SF NF

No Lay No Lay No Lay No Lay

0.04 0.15 0.23 0.48

6 7 8/2 m 9 10 11 12/3 m 4m 5m 6m 7m 8m 9m 10 m 11 m 12 m 13 m 14 m 15 m 16 m 17 m 18 m

NF NF NF NF NF NF NF NF NF NF NF NF NF NF NF NF NF NF NF NF NF NF

44,000 50,000 56,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000

No Lay No Lay No Lay No Lay No Lay No Lay No Lay No Lay No Lay Laying 40% - 50% Laying 55% - 70% Laying 70% Laying 70% Laying 70% Laying 70% Laying 70% Laying 70% Laying 70% Laying 70% Laying 60% - 55% Laying 55% - 45% Spent Layers

0.87 1.30 1.70 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10

TOT AL

1,584,000

Note:SF = Starters Feeds F = Normal Feeds 25 kg bag of poultry feeds is sold for N1, 350.00.

To determine the total cost of feeds consumed by 10,000 Layers within the 18 months they have been fed by us, we have;

Total feed consumed (KG) Weight of 1 bag of feed (KG) Total feeds consumed by 10,000 layers = 1,584,000 kg Weight of 1 bag of feed = 25 kg = 1,584,000 25 = 63,360 bags Therefore: Cost of 63,360 bags = 63,360 X 1,350 = N 85,536,000.00 Associated cost of feeding for layer birds = N 85,536,000.00

Estimated Egg Production Table:

Dat e of

First Lay: . Tim e of Lay: No. of Egg s: Day D at e 1st collectio n 2nd collectio n 3rd collectio n Tota l Egg s No. of Crat es No. of Sellable Remark s

6th m 7m 8m 9m 10 m

11 m 12 m 13 m 14 m 15 m 16 m 17 m

Sales Forecast For Egg Production Bath 1: First Month: Second Month: 3rd Month: 4th Month: 5th Month: 6th Month 7th Month: 8th Month; 9th Month; 10th Month: 11th Month: 12th Month: 13th Month: 14th Month: 15th Month: 16th Month:

Estimated Sales of Eggs First Batch:

Estimated Sales of Eggs Second Batch:

Estimated sales for Spent Layers: 1 kg at current market rate = N450 Weight of Spent layers = 2.1 kg Therefore: 2.1 kg X N 450 = N 950 Estimated Mortality Rate: 5% Therefore: 0.05 X 10,000 = 500 10,000 500 = 9,500 spent layers Estimated cash flow for spent layers: 9,500 X N950 = N 9,025,000

CASHFLOW PLANS FOR FIRST 12 MONTHS:

BROILERS: N 31,164,750 X 12 = N 373,977,000 EGGS: 5,000,000 x 12 = N 60,000,000 SPENT LAYERS: = N 9,025,000 TOTAL: N 443,002,000

Purchase of Feeds: Considering the large quantity of feeds we need to purchased for the farm over a period of 1 year and our subsequent growth plan, we propose to negotiated and signed a Memorandum Of Understanding (MOU) and a Sales and Purchase Agreement with ECWA Feeds as one of the best poultry feeds producers in Kaduna state to cover our poultry feeds needs for the first year. This MOU and the Sales and Purchase Agreement are subject to review after the first year. Proposed Sales and Purchase Agreement for Supply of Poultry Feeds entered into by NamuNamu Nigerian Enterprises and ECWA Feeds Nigeria Limited Kaduna: The Propose Sales and Purchase Agreement was prepared by our legal advisers, Festus Keyamo & Partners after a meeting the management of Namu-Namu Nigerian Enterprises and ECWA Feeds Nigeria Ltd. Kaduna. The basic terms are as follows: 1. That Namu-Namu Nigerian Enterprises shall make a total purchase of 22,240 bags (5,560,000 kg) of poultry feeds over a period of 12 weeks from ECWA Feeds Nigeria Limited Kaduna. 2. That Namu-Namu has agreed to purchase same at a total cost of N30, 024, 00 from ECWA Feeds Nig. Ltd. Kaduna. 3. That Namu-Namu shall make an advance payment of into an ECWA Feeds designated account no. .. as first instalment payment.

4. And a subsequent payment of N monthly over a period of 8 months in completion of the total amount in item 2. 5. That ECWA Feeds Nig. Ltd shall make available the daily requires of quantity 20,000 kg to Namu-Namu Nig. Enterprises upon confirmation of payment to the aforementioned account in item 3. 6. That ECWA Feeds Nig. Ltd. Kaduna shall hand over the required poultry feeds to any person who may be designated to receive the feeds after due identification and authorisation from Namu-Namu Nig. Enterprises 7. That Namu-Namu and ECWA Feeds Nig. Ltd. Kaduna shall keep records of all supplies under the basic accounting and book keeping principles obtained in Nigeria. 8. That all records relating to this transaction shall be reviewed on a monthly basis by the account departments of the parties under these agreements. 9. That all deliveries shall be timely in view of the fact that the lives of the birds depends on them. 10. In the event of any situation happening that may hinder the timely delivery of feeds by ECWA Feeds to Namu-Namu, ECWA Feeds shall give an early notice of not less than 48 hrs to Namu-Namu in writing. 11. In the event of item 10 happening, ECWA Feeds shall recommend alternative sources to Namu-Namu to purchase the required feeds and such purchase shall be valued at current market value and deducted from the next payment due to ECWA Feeds.

Risk Management: We plan to use the Nigerian Agricultural Insurance Cooperation as our principal insurer. This is because its a government backed organisation and it has a special scheme for small and medium scale enterprises in Nigeria. Insurance Model:

Internal Control: We are going to engage the service of KBS Consults for financial services, as they are well experience financial managers. They will help set up a system of internal controls to make sure that Namu-Namu will receive all of its income without any of it being siphoned off by waste, fraud, dishonest Employees or carelessness.

We are also going to engage the services of ZARTECH a renowned name in the poultry farming business as our consultants on bird management.

MARKETING PLAN: Our target markets are the hotels, fast food outlets and discount department stores that have good credit ratings and reputation for prompt payment. These will include; Mr Biggs Chicken N Fries Amigo Supermarket Sheraton Hotels and Towers And a selected few We plan to focus our initial marketing efforts on establishing strong customer relations from the onset. The management will personally be responsible for contacts with our prospective clients. Marketing representatives will be appointed to further boost our market. The sales representatives shall operate on a percentage of total sales they are able to make in a transaction. Packaging: Our products will be presented as a complete package of dressed, weighed, frozen and packaged in a special polythene bag including supply. The polythene bags will be engraved with the following; Weight of the chickens. Name and Logo Farm address Contact details: - Phone numbers

- e-mail address - Website

Associated cost: 10,000 Polythene bags @ N3, 500.00 Printing of details @ N7, 000.00 TOTAL 10,500

Computer & Communication Tools: Taking advantage of the new trend in business with regards to information technology, we plan to lunch a website as part of our marketing tools in order to showcase our farm products as well as enable customers to place orders for any of our products on the web, through our online store. This will be of tremendous help since detailed pictures and other information could be viewed without having to visit the farm. More so, information updates are readily posted on the site in a matter of minutes for potential customers. Associated Costs: Website design @ 100,000 Web hosting @ 20,000 per annum TOTAL 120,000

Computers will be used for record keeping, including accounting, medication administration, as well as cycle schedules for production. Associated Costs: 2 computers @ 50,000 1 coloured printer @ 13,000 1 LaserJet printer @ 18,000 TOTAL 81,000

Acquiring an office space: We plan to acquire an office space in the Abuja city after a 3 month period as a marketing office. So as to enable the enterprise liaise with its marketers and customers. Associated Cost: Two Room Office space in Wuse area @ 300,000 per annum Furniture @ 80,000

AMAC taxes @ 15,000 per annum Telephone Line fixed @ 13,000 2 Window Type A/C @ 40,000 TOTAL 448,000

ANALYSIS/SUMMARY OF COST: FIXED COST: RECURRENT: SOURCING OF FUND: REPAYMENT PLAN: BREAK EVEN POINT PROFIT