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The rabbit breeds, which are popular in the area, are New Zealand White, Californian, Soviet
Chinchilla and Gray Giants. These rabbits are reared for their meat as also for fur and wool.
Breeding stock for a rabbit farm may be bought from local breeders. Medium-sized rabbits breed
at 6 to 7 months of age and give birth after a month of gestation. Female rabbits can produce up
to 50 live rabbits annually, with births high during the summer. They produce an average of 9
kits per birth.
Check with your local office about regulations that you must comply with in relation to
rabbit farming.
Breeding rabbits for laboratories requires special license and controlled conditions to
meet customer-required characteristics, such as weight and age
If you are planning to sell rabbit meat, you should think of slaughtering and storage
facilities in addition to your usual farm facilities
Temperature control in rabbit breeding is important as rabbits are sensitive to extreme
temperatures
Make sure that you have each rabbits health record in order. This is particularly
important if you are raising rabbits for sale as breeding stock. Potential buyers might ask
to see them when looking for stocks to buy
Maintain a sanitary operation to prevent the outbreak of disease in your farm that could
potentially be damaging to the business
To keep your startup cost low, you can construct rabbit housing yourself from available
construction materials you have
1.Introduction...............................................................................................2
2. Executive Summary.................................................................................2
3. Description of Industry and Opportunity.................................................3
4. Economics, harvest Potential..................................................................5
5. Marketing Plan.........................................................................................8
6. Design and Development plan...............................................................13
7. Production Plan......................................................................................15
8. Organizational Plan...............................................................................19
9. Assessment of risk................................................................................21
10. Financial planning...............................................................................23
11. Conclusion..........................................................................................24
12. Annexure 1 ..............................................................................................
13.Annexure 2................................................................................................
14.Annexure 2................................................................................................
15.Annexure 2................................................................................................
16.Annexure 2................................................................................................
17. Performa Income statement...................................................................
18. Balance sheet.........................................................................................
1.
INTRODUCTION:
Bunny farms
Kahuta road opposite police academy
Sihala
Islamabad
Ph: 051-13434546
Fax: 051-1232432
Email: bunny.farms@gmail.com
1. Executive summary
The Ostrich is an endemic bird of African origin. It is characterized by its
ability to survive in temperatures ranging from two to fifty degrees Celsius; it
can be reared on barren land and mainly feeds on Alfa-Alfa, Lucerne and
water.
Today, ostrich farms are considered to be among the most profitable
agricultural projects. Ostriches are raised commercially for their meat, hide
and feathers. Currently commercial farming is going on in about 100
countries in all continents and regions
Ostrich meat is Halal and it was eaten by companion of Holy Prophet
(PBUH) after accepting Islam.
Pakistan is one of the most suitable places to undertake commercial farming.
It has cheap labor, a suitable climate, inexpensive fodder, low business cost.
Agriculture shares in Pakistans National GDP 21.0 % and Livestock share in
National GDP 11.4 %. And an increase in Meat and Meat preparation exports
39.8 %/
.More than 50% Pakistanis prefer meat over vegetables and pulses
(GALLUP PAKISTAN Islamabad: March 30, 2009)
Over the years, many changes have been observed in the pattern of meat
consumption in the country.
There were 10.8 million hypertension cases in Pakistan according to the
National Health Survey 1994. According to 1998 estimates there are now
over 12 million cases. Nearly one-third of all deaths in the country are due to
heart disease, and 1% of babies born here, 5% of school-age children, and
14% of the adult population suffer from some form of cardiac disorder.
Ostrich meat is low fat and cholestrol free which can save many of cardiac
patients of pakistan.
Chicken, beef, mutton, fish suppliers are competitors for ostrich, but due to
its low fat meat, luxurious leather, fancy feathers, and oil ostrich will defend
its position in market.
The ostrich industry is a growing economic sector that is gaining popularity
within the market as recognition is given to the characteristic low fat and
cholesterol content of the meat which makes it the healthy alternative to
other red meat.
There are a significant number of households, health conscious individuals,
restaurants and hotels are interested in ostrich low cholesterol and healthy
meat and leather industries in Pakistan is the best potential market for
ostrich leather.
There is a well established Export Market for Ostrich Meat and leather in Iran,
Saudi Arab and UAE.
There are four Major markets for Ostrich and its products. Due to friendly
nature and beautiful looks, Ostrich is very popular as a pet bird in Pakistan.
And the most prominent Pakistan meat and leather market: as many
restaurants, modern retail and hyper markets are willing to pay premium
prices for regular supply of Ostrich meat. Numerous leather and
pharmaceutical industries in Pakistan are interested in buying Ostrich Oil,
leather and feathers.
For export there is a great demand of ostrich meat and leather in Iran, UAE,
Central Asia, Far East and Korea.
In Pakistan, Many farmers have started buying Ostriches from other farmers.
Many new farmers will buy chicks and eggs from senior players of industry.
The business shall be named SKIES ostrich farm.
The company will be providing brochures regarding the benefits derived from
ostrich products and distribute it to potential customers. This is to create
awareness about ostrich and the existence of the ostrich farm and to
eliminate any uncertainties and confusions about ostriches.
Website with Name of www.skiesostrich.com will be established.
The business is a general partnership at will consisting of three partners. The
partnership agreement shall set forth the capital contributions needed and
the share of each partner including the profit and loss ratio.
1: **** **** Sultani
2: **** Alam
3: **** chaudhary
With a capital of Rs. 16449200/- we will start a farm by buying and grow
owing 300 chicks beside 3 egg laying Trios. 300 Chicks will be grown to reach
slaughter able age for 12 months. Mean while new chicks will be produced
through eggs laid by 3 Trios and we would get above 300 chicks available for
next year. Fast growth and high production level will make the ostrich meat
cost competitive. By selling meat @ Rs. 400/- per Kg beside by-products like
Hide and Plumage of Ostrich Pay back period for this project is expected 1.4
years. Overall this is a very profitable venture and virtually there would be no
competition in beginning period of this project.
2.
Description
Opportunity
of
Industry
and
With the meat situation what it is and the economy in turmoil now is a good time to consider the
rabbit business. The best way I know to put good food on the table and a few Rupees in your
pocket, without a large investment, is raising rabbits. The profits can come in many ways: You
can sell them to markets as pets, Schools or in parks zoo etc, even the Rabbits skin is use as
wool. Meat, however, is by far the most important product.
Large variety of possible products and their expected high profit potential.
Currently commercial farming is going on in about 100 countries in all
continents and regions. Some countries where this is done with official
backing are: Saudi Arabia, China, Turkey, Iran, Egypt, Jordan, Israel, and
many African countries.
Pakistan is one of the most suitable places to undertake commercial farming.
It has cheap labor, a suitable climate, low business cost and a population of
businessman/farmers/investors who are willing to enter into this new
venture.
Rabbit meat is light, healthy, low-fat, tender and also very tasty and easily digestible
Meat is highly delicious and healthy. Most importantly, It can be sold at a
price of PKR 150/Kg with great profit.
People at Pakistan cooked rabbit meat with normal cooking methods and all
of them appreciated the taste and most of them ordered it at a high Price.
Many professionals including Top chefs of Pakistan tested rabbit meat and
appreciated its taste.
Rabbits are farmed-raised for their meat and fur. The fur of the rabbit is known for its warmth
and is best known for use in the lining of coats. Rabbit fur is also used in dressing to line hats,
gloves and shoes. It is also used for stuffing, bedding and making felt.
Opportunity Size:
Rabbits are used for their wool, fur, and meat. They are also used as testing specimens by
laboratories. Their breeds usually determine how they are used. And so, before starting a rabbit
farm, it is important that a prospective rabbit breeder determines to whom he should sell his
rabbits. Will it be to restaurants, meat shops, individual purchasers, schools, laboratories,
hospitals or breeders?
MEAT
PROTEIN
FAT
CALORIES
Rabbit
20.8
10.25
795
Chicken
20.0
11.0
810
Beef
16.3
28.0
1440
Lamb
15.7
27.7
1420
INDUSTRY ANALYSIS
i. Macro Environment (Economy, Culture, Technology & Legal)
Economy:
Food prices especially mutton and beef are very expensive in Pakistan. By
establishing own farm and self production makes Rabbit meat economical.
Production of rabbits can improve economical situation of Pakistan as we can
produce and export the Rabbits Meat, , Skin of rabbit use as a wool which are
highly demanded items in western markets.
Culture:
Pakistanis are meat lovers. It is part of our culture to serve meat made
dishes for our guests and also to prepare and serve meat made dishes on
special occasions. Meat is cooked in variety of manners which include
Karrahi, Kabab, Korma and Pulao etc. Rabbit would provide a healthier and
less costly alternative to our society in competition with beef and mutton.
Technology:
Rabbit farming requires modest investment as it needs only simple facilities and small land area.
A small rabbit farm could have 15 to 100 rabbits requiring between 5 Lack and 10 lack Rupees in
startup capital. To start your rabbit farm, prepare a rabbit hutch that is well lit and well ventilated
with heating and cooling systems. Metal cages are usually recommended for its ease of cleaning.
Equip the cages with feed hopper, watering system, and nest box.
Legal:
Farming is not only legal business; it is also promoted by Government. There
are not legal issues involved in this business.
ii. Specific Industry Environment, Future Outlook, Trends of
Industry, Growth Rate, Govt. Policies and Competitor Analysis
(Direct and Indirect)
In Pakistan Ostrich industry is new and a few farms have been established
which are mainly located in Sind area. Only one company Pakistan Ostrich
Company based in Karachi is promoting Ostrich business by importing,
selling and growing ostrich chicks.
Future of Ostrich farming is so bright that this bird is also known as Future
Bird. Ostrich meat is healthier with very low fat content. Beside its meat, all
of its part including hide, Feathers, Bones are sold and have good demand in
western countries. In Pakistan growing demand of meat and corresponding
increase in beef, mutton and chicken prices would help Ostrich business
prosper rapidly because it is healthier and less expensive alternative for
these.
4. Marketing Plan
i. Products
Meat: The meat has a high percentage of easily digestible protein.It contains the least amount
of fat among all the other available meets.Rabbit meat contains less calorie value than other
meats. Rabbit meat is almost cholesterol free and therefore heart patient friendly.
Rabbits are one of the most productive domestic livestock animal there is. Rabbits can produce 6
pounds of meat on the same feed and water as the cow will produce 1 pound of meat on the same
feed and water.
Rabbit fur: Rabbits are farmed-raised for their meat and fur. The fur of the rabbit is known
for its warmth and is best known for use in the lining of coats.
Rabbit fur is also used in dressing to line hats, gloves and shoes. It is also used for stuffing,
bedding and making felt
AD SIZE/TIME
5 Column x 3
cm
5 Column x 3
cm
5 Column x 3
cm
RATE
(Rs)
Ad/mon
th
Qty/ye
ar
Budget
required
32000
192000
1365
48
65520
2700
48
1000
129600
123480
510600
5.
Mission Statement:
To fulfill the food demand for growing population, we have to find out different ways of food
production. The rabbits can be a great source of food production.
There is a great opportunity of rabbit farming in our country people also love them as a pets
History of Venture, location and Size of Business:
This business is relatively new business in Pakistan but its resemblance with
Poultry Farming is a plus point. We have decided to establish our farm in
sihala, Islamabad where land is available on rent @ Rs. 40000/- per acre per
month. Environment of this area is suitable not only for Ostriches but also to
produce its feed which mainly consists of fodder. Well start our business at
small level by growing 300 chicks along with 3 breeder trios to increase the
Ostrich population and attain self sufficiency in production of Ostrich meat
for our Restaurant.
ii. Product/ Service Details
The ostrich grow to market weight in 12-14 months. They available meat
weigh is approximately 90-100 Kg at this time which is roughly 70% of
overall Ostrich weight that is normally 130 Kg. Well slaughter Ostriches at
this age and deliver meat at hotels and restaurants. For this service well use
a centrally Suzuki Cargo Pickup with refrigeration facility and deliver the
orders at customers doorstep. Hotels can then cook Ostrich Meat and offer
to their guests in the form of Steak, Karrahi, Kabab and other forms.
iii. Service(s)
To start with, well grow ostrich and slaughter it at the age of 12-14 months
and deliver Ostrich meat at selected Top class Hotels/Restaurant only. After
achieving higher levels of annual Ostrich Production, well start delivery to
small hotels/restaurants along with home delivery and also use internet for
getting orders.
iv. Farm/Office Equipment and Personnel
Management Team
Owners:
Personnel:
Land:
Equipment:
Fodder cutters
Building:
3 Paddocks as per drawing (attached in Annexure-1) with
hay
storage, Incubation room and equipment storage
rooms. Rest of
land to be used for hay and fresh fodder
production.
Vehicles:
6. Production Plan
Ostrich Value Chain
The value chain starts with the rearing of birds in the incubation phase where
eggs are hatched in incubators to produce 380 birds per 42 day
cycle. Feathers are plucked from the age of 6 months, and slaughter takes
place at the age of 12 to 14 months. When slaughtered the adult bird weighs
approximately 90kg.
Operating cycle
The comparative economics of ostrich v/s beef cattle indicates that ostrich
farming has an edge over cattle farming in terms of high returns on
investments. Added to the high returns the operational advantages found
are:
- The bird can be reared in paddock along with sheep, goat and cattle
- The birds need no dipping, drenching, milking and shearing.
- The adaptability of the bird is equally high on annual and perennial
pastures.
Complete Manufacturing Process
20-24
Months old
Trios
Eggs
Hatching and
Incubation
Market
4 Weeks old
Chicks
Feeding
Growing &
Ostrich are
slaughtered
to produce
meat
Duck
eggs
Turkey
eggs
2772
Dimension
Power
Quail and Voltage Consumpti (length*width*hei
Goos
ght)
other
on
e
(Meter)
birds
eggs
eggs
1584
220V
50HZ
200W
1.8*0.85*2
129PCS
97-98 F(36.1-36.7C)
Incubation
humidity
20-40% RH
Transfer to hatcher th
40 day(reference only)
date
Hatcher condition (96.8-98.0F36.0-36.7)
Note: Tips of Incubator use are attached as Annexure-2
INCREDIBLE FEED TO WEIGHT GAIN RATIO:
Farmed animals such as cattle and swine eat steroid-, antibiotic- and
hormone-laced feed and they eat an incredible amount of it. Cattle and swine
can eat in excess of 20:1 in their feed-to-weight ratio. This means that they
have to eat 20 pounds of feed to add 1 pound of weight.
The overall feed-to-weight ratio gain of an ostrich is 2:1 during the first few
months of their lives and this climbs to only 3.5:1 during their normal
development at 9 months or so. The benefits to you are considerable: less
maintenance, less feed and of course less animal waste! It is indeed the
future animal. The overall feed to weight gain ratio of cattle is 7:1 and that
of sheep is 5:1.
Slaughter Birds
Slaughter Age Days
(1)
Low
Low
Productio Production
n
Medium
Production
High
Production
365-425
425-485
300-365
180-300
85-120
85-130
90-120
90-125
Feed Consumption
kilos (2)
650-785
785-925
470-620
230-435
5.5:1 9:1
6:1 - 11:1
3.9:1 7:1
2:1 3.5:1
Live weight
Nutrition:
Ostrich are browsers and not grazers. They require rations of high nutrient
value with high levels of vitamins and minerals supplemented in the rations
to optimize health and maximize their production potential. The following
table lists the rations required at the different stages of production.
Ration
Production Requirement
Grower Birds
Pre-Breeders
Ration
Kilos
1 - 60 Days
61 - 140 Days
141 - 280 Days
281 - 365 Days
Starter
Grower
Grower
Grower
25
107
291
192
Breeders
Breeder
Maintenance
TOTAL per
annum
Day
s
252
113
365
Daily
Amount
2.1kgs
2.1kgs
No.
Birds
2 (Pair)
2 (pair)
Total
Kilos
1058
475
1533
No.
Birds
3 (Trio)
3 (Trio)
Total
Kilos
1588
712
2300
Note that feed consumption on low production rations is generally greater than medium and high production
rations.
7. Organizational Plan
i. Form of ownership (Single owner/partnership or Pvt Ltd Co)
Skies Ostrich farm is a partnership of three persons who will equally invest
and would have equal share in profit and loss of the business. All partners
will invest their time and efforts for the development, improvement and
success of business. However responsibilities would be clearly defined and
allocated for smooth running of business.
ii. Identification of Partners or Principal shareholders and their
respective Authorities
Since all three partners have equal share in business so they have equal
power of voting. However one managing partner would be selected and
would be authorized to take decisions regarding matters of Skies ostrich
farms.
iii. Middle Level Management
Our middle level management will comprise on Marketing Manger,
Purchasers/Delivery boy and Accountant.
Marketing Manger:
He/She will be responsible to implement the sales and Marketing plan.
He/She will visit to potential customers in our target market and persuade
them to buy Ostrich meat. He/She will also be responsible to achieve the
sales targets as set in Marketing Plan. He/She will also be responsible for
forecasting the demand and coordinating with the Directors to adjust the
production levels accordingly.
Purchaser/Delivery Boy:
He will be responsible to carry out both purchasing and as well as delivery
the processed meat to customers who would place order. His duties will
mainly be related with field work. He would also be responsible for collection
of payment against delivered orders.
Accountant:
He/She would be responsible for maintaining and compilation of financial
transactions record.
7.Assessment of Risk
i. S.W.O.T Analysis
Strengths
Increasing supply and demand gap for meat in Pakistan
Potential for high production levels of birds utilizing available land
Potential for self fodder/hay production
Fast growth of breeder birds
High weight gain ration of Ostrich compared with other animals
A combination knowledge and experience of owners spreading on
Engineering, Administration and Human Resource
Availability of infrastructure for production and access to market
New product with virtually no competition to start with
Weaknesses
Lack of consumer awareness regarding Ostrich meats
Lack of scientific research in Pakistan so far on Ostriches
Un-developed market in terms of Ostrich meat
Product Image to be developed yet
Lack of Ostrich farming experience and training
Opportunities
New market with virtually no competition at the moment
No farm operating in our target market region so far
Mass production will make prices below beef and mutton
Increasing demand of meat with decreasing supply
Increasing meat prices in the market
Opportunity to capitalize on broadening consumer tastes
Threats
Threat of new entrants in the market
Risk of supply exceeding demand if markets not developed successfully
8.Financial Plan
I. Sources and Applications of funds (First Year)
Total capital equaling Rs. 16449200/- is required for this project. This amount is
totally invested by the owners with equal share. No bank loans are being
taken due to very high rate of interest.
5444320
Selling Price
400
Variable Cost
200
BEP
BEP
7331320/ (400-200)
BEP
27222
Kg Ostrich meat
16449200
/ 11220513.52
1.46599351
Years
Conclusion
The environmental benefits, the excellent feed-to-weight ratio gains
and the breeding proliferation of ostriches make commercial ostrich
farming worthy of investigation.
We also know that ostrich handling after 4 - 5 months is very low
and a good farm manager can easily take care of a farm of 10
breeding ostriches and hundreds of offspring.
From a consumer and marketing point of view, people are eating a
much healthier diet and are turning to ostrich meat as a
beef/mutton alternative. Production of low fat and low cholesterol
meat will allow consumers to have energy protein with out fear of
heart and other health problems. The demand for luxurious and
easily recognized ostrich leather continues. The cosmetic Industry
continues its never ending search for eternal youth and exotic
ostrich oil is beginning to receive its long overdue recognition. And,
of course, ostrich feathers are a permanent fixture in the world's
carnivals, Mardi Grass and festivals everywhere. After the success
of poultry industry during last two decades ostrich farming can open
new vistas for development in Pakistan, Very soon we can be the
world leader in ostrich farming.
In short, Farming ostriches can certainly be financially rewarding.