Business plan of Griraj poultry

enterprise

Prepared by:

Santosh bhandari

Submitted to:

Kamal regmi

Agribusiness Management, marketing and co operatives

IAAS, Paklihawa Nepal

EXECTIVE SUMMERY

.Griraj is dual propose breed of poultry . 2000 Layer birds are reared, from the age of day old
to 63-70 weeks. Egg production via the process of raising poultry layer birds from Point of Lay
(POL) for the purpose of producing eggs and meat production Egg laying is started after 5
months (19-22 weeks) of age. In the first year, at peak production, the farm will produce about
60 crates (30 eggs/crates) per day and generate NRs. 17100 in revenue and about grossly NRs.
4233000 as gross profit after deduction of all cost associated with the enterprise on total basis.
Spent layers would be sold at the end of one year. At full capacity, the project, housing 2000
laying birds would generate up to NRs. 71,01,500 in revenue and about NRs. 42,33,000 on net
profit.

BUSINESS OVERVIEW
Egg production is the most popular form of poultry farming because egg consumption cut across wide
divide. Poultry production come in different forms ranging from parent stock breeder meat
(broiler/production), egg production, Quail production, turkey production, ostrich farming, duck
farming, Geese farming and ornamental bird rearing among other. The business could also come in
specialization such as brooding, Point of Lay production, liquid egg package, egg trading, cold room
marketing, day old chicks, feed milling, birds transportation or egg deport business. Because of the
vastness of this industry, entrepreneurs focus will be on an aspect and with time add other aspect either
for vertical or horizontal integration, In Nepal, this industry is still grossly untapped and any part of the
industrial possess great potential. Specialization and continuous improvement on skills is always
paramount.

The major hindrances to the growth of the industry in Nepal ranges from absence of credit, high interest
rate, high cost of maize, unavailable electricity which is important for cold rooms, incubators and
operation of automated cages. Because of the fallow nature of the industry in Nepal, the prospect is
high. Right now the demand for egg, broiler meat, day old chicks, day old poultry etc. remain
overwhelmingly high.

Description of Business:
The business entails keeping of chicken from (Day old to) fourteen weeks when the growers will be
transfer to cages. The caged birds at the age of 19 - 22 weeks start to lay eggs. The eggs are packed in
crates of 30 packs, transported to the market where they are distributed to customers. The laying birds
by the age of 60 to 75 weeks of laying, are sold out as spent layers for meat.

Business profile:
Name: Commercial Egg production (Layer farming)
Business owner: Mr.Sirinagar Agro farm (Sole Proprietorship)
Address: Banganag-2,kapilvastu
Location: Banganag-2,kapilvastu
Distance from main road: 800meter
Contact: +977-9847133587
Email: satisfaction2068@gmail.com
Vision:
- To produce nutritious eggs, generate employment, and create wealth for investor.

Mission:
-Build a mechanized poultry that is efficient and rewarding.

Goals:
-To feed the people in our community with healthy, organic and eggs.
-To have an economically sustainable business.
-To support local business through purchases for the farm.
-To have sound business practices.
-To expand our business at a healthy rate through good management practices.

OPERATION/PRODUCTION PLAN
The Stocking plan involves the purchase of 2000 Layer Birds which will be placed in the first year. The
birds will be purchased at day old age and will take 19-22 weeks to come to lay. They should culled out
as spent by 70 weeks and thereafter sold as Old Layers. Within one month, the Spent Layers should
have been sold out. 5 to 10% mortality rate is assumed.
On average a bird produces one egg per day. Furthermore, not all birds start to lay exactly when they
are 21 weeks old. On an average between 250 and 300 eggs per year is produced from one bird.

Input requirement:
The major material inputs required for the success of this proposed project are, Feed (Grower mash,
and Layer mash), various types of medications when needed and vaccinations according to schedules.

Operational details:
Attendants and manager get to the pen at very early of the day. Mix disinfectant and pour at the
entrances. Change into work cloth and foot wears. Soak their legs with the disinfectant as well as wash
hand with same. Each nest is observed for discomfort birds sick or dead. Such animals are then culled
and recorded. Water is checked each Tip is tested to ensure normal flow. Blocked Tips are cleaned or
replaced. Feed (already measured) is given to the birds by evenly pouring them into the trough. Eggs
are packed from the cage using basket or directly into the crates. Record is taken; this shall include
number of morbidity, number of mortality, number of eggs, abnormal observation on feaces or in the
pen etc. The eggs now packed in crates, are taken to the store room for onward transport out to the city
facility.

Insurance:
The birds and other assets (poultry sheds, equipments) may be insured. Wherever necessary the
risk/mortality fund may be considered in view of insurance.

Concerned factors during Operation planning:

 Housing: Proper ventilation and spacing is a critical success factor. Positioning of house to give the
birds’ maximum ventilation and reduce heat is important. Housing shall be made with good ventilation
facilities.
Water: Watering and water source is of great importance. Foul water source or water getting
contaminated in poultry house signifies that the farm will fail. Water should be managed to ensure that
clear and clean water is available for bird ad libitum.
Nutrient: Most farm fail because they wanted to reduce cost of feed by compounding farms should
only venture into self compounding on ground with available experiment. All nutrients must be
readily available in the market to prevent malnutrition.
Sales: Egg produced must be sold. Proper marketing with vigorous advertisement will ensure the
product is made available to the target market.

Economics of Layer farming: Investment Cost

SN Particulars Specifications Physical Unit cost Total cost

units (Rs./unit) (Rs.)
1 Sheds and other structures
A) Brooder cum grower shed (deep litter) 1 sq.ft/bird 500 sq.ft 200 100000
B) normal sheds (under cage system) 2.5 sq.ft/bird 1200 sq.ft 150 180000
C) Store room 100 sq.ft 200 20000
2 Water supply system (water tank and pipeline) 10000
3 Equipments
Brooding cum growing house 500 birds 100 50000
Laying house (cage) 1500 birds 400 600000
4 Capitalisation of recurring expenses
A) Chick cost 2000 50 100000
B) Feed cost 44 kg/bird 88200 10 882000
C) Overheads such as cost of electricity, 2000 Birds 6 36000
medicines, vaccines, insurance, litter etc.
D) Labour cost 63 weeks 5 400 882000
5 Marketing
A) Collection, sorting, grading, packing included in 4 (D)
B) Storage cost 500
C) Supply/ transportation cost 150 crate/van 5000
D) Advertisement (hoardind board) 3000
5 Total financial outlay (TFO) 28,68,500

PERSONNEL PLAN
The poultry industry is knowledge based home employment of expertise is imperative. Consultancy is
paramount. Training and retraining of staff is sacrosanct no matter how small the level and acquisition
 of knowledge of modern trend is a factor to growth. To run this enterprise there shall be five skilled and
semi-skilled manpower, working and serving at Dev Poultry firm.
Manpower profile and plan
SN Particulars Physical unit Cost involved Total cost/day
1. Feeding and watering 1 400/labour 400
2. Waste management (litter 1 400/labour 400
management)
3. Egg collection, sorting, grading 2 400/labour 800
and packing
4. Supply to market, storage 1 400/labour 400
Total 5 labour 400/labour 2000/day

The labour associated with the function above shall be involved in other activities within this enterprise,
such as vaccination, biosecurity, culling, selling etc.

Biosecurity training:
Biosecurity training will be mandatory given to attendants and other staff.

Staff Housing
Attendants shall and should be housed in the farm or in close proximity for the sake of emergency such
as insect attack, late feeding, brooding and security.

MARKETING PLAN
This enterprise shall employ a Marketer at full capacity. People would be employed to sell the eggs
from one egg deport to another/ through the marketing activities, many clientele base shall be created.
They either pick up the eggs from the farm on their dates or have it delivered with the farm van at a
price.

Processing/Marketing
1. Ensure the constant and steady demand for eggs is available and the market is nearer to the
farm.
2. Study the market demand for particular egg weight. Provide one nest box for every 5 birds.
3. Collect eggs from the shed 4 times a day. Store them in a cool dry place and market them
quickly.
4. Birds should not be kept on the farm beyond 70 weeks of age, as their egg production will go
down considerably and their efficiency of feed conversion will reduce progressively as they
grow older.

Economics of Layer farming: Return from business

SN Particulars Specification Physical Unit cost Total cost (Rs.)
unit (Rs./unit)
1 Egg production no. of eggs/day 1800 9.5 1800*9.5=17100
17100*365=62,41,500

2 Culled birds no. of birds/batch 2000 400 8,00,000

3 Income from manure Rs./bird 400 150 60000
Total 7101500

Balance sheet:
Amount (NRs.)
1. Assets
Current Assets
Cash 70000
Account receivable 350000
Total current assets 420000

Fixed Assets
Land 357000
Building 420000
Furniture and machinery equipments 150000
Intangible (goodwill) 5000
Total fixed assets 932000

Total Assets 1352000

2. Liabilities
Current Liabilities
Account payable 150000
Accured Interest payable 30000
Wages/Salaries payable 882000
Total current liabilities 1062000

Long Term Liabilities

Mortagage 90000
Total long term liabilities 90000

3. Owners Equity
Owners capital 200000

Total Liabilities and Owners Equity 1352000

Cash Flow Statement:

Inflow Amounts Outflow Amount (NRs.)
(NRs.)
Cash received from production Cash paid for farm production
Egg 6241500 Housing 300000
 Culled birds 800000 Instruments 650000
Manure 60000 Labour and Others 890500
Withdraw of saving 400000 Feeds, medicine etc. 1018000
deposit
Sales of personal asset 1000000 Payment of debt 400000
Loan/cash received 250000 Misecellenous 350000
Total 8751500 3608500

Economics of Layer farming: Investment Appraisal

Benefit over cost 4233000
B/C ratios 2.475684155
NPV (at 10%) 789,055.56

COMPETITIVE STRATEGY
Product for sale Way to make more competitive
Low product Good quality produce Credit sale Discounting Offer
price
Egg - Yes - Yes Yes
Culled Birds Yes Yes - Yes -
Manure Yes Yes Yes - -

MANAGEMENT PLAN
Package of Common Management Practices:
Modern and well established scientific practices should be used to obtain maximum economic benefits
from poultry farming. Some of the major norms and recommended practices are given below;

Poultry Housing
1. Select well raised land for poultry sheds. Land with hard rock is more suitable. Avoid water
logging and flooding near the sheds. Provide separate sheds for growers and layers.

2. Ensure adequate facility for water, electricity, approach road, supply of chicks, feed, veterinary
aid and nearness to market for sale of cull birds and eggs.

3. Obtain training/experience in layer farming before starting a farm.

4. Provide adequate floor space per birds.

5. Provide adequate light and ventilation and comfortable housing conditions during all seasons
(cool in summer and warm in winter).

6. Construct sheds in such a way that predators (cats/dogs/snakes) will not enter the shed. Avoid
entry of rats by constructing rat proof civil structures.

7. Keep the shed clean and free from flies/mosquitoes etc.

 8. The litter material should be always kept loose and dry. Stir the litter twice a week. Any wet
litter/droppings etc. should be removed and replaced with fresh/clean dry litter.

Poultry Equipment
1. Use scientifically designed cages and equipment for brooding, feeding and watering purposes.
.
Chicks
1. Purchase improved strain of one day old healthy egger type chicks from a reputed hatchery.
Usually 2-5% extra chicks are supplied.
2. Clean, wash and disinfect all equipments with 0.5% malathion.
3. Feeding
4. Use high quality balanced feeds.
5. Use properly designed feeders and control the rats to avoid feed wastage.
6. Keep proper records on feed consumption per bird for each batch.

Watering of Birds
1. Always give fresh and clean drinking water. Water should be always available at birds.
2. Use properly designed watering equipment. Provide adequate watering space per birds.
3. Always keep water-pots clean. Avoid birds entering inside pots.
4. Provide cool water during summer. Store the water in tanks that are not exposed to hot sun in
summer.

Disease Prevention/Control
1. Clean sanitary conditions of poultry sheds and equipment, balanced feed, fresh clean water,
healthy chicks are essential to prevent diseases.
2. Avoid entry of visitors to farm, especially inside the sheds. If visitors come, ask them to dip
their feet in a disinfectant solution, wash and clean hands and to wear apron/boots provided by
the farm.
3. Use proper vaccination schedule.
4. Use high quality vaccines purchased from reputed manufacturers. Keep vaccines in cool, dry
conditions away from sunlight.

Bird flu, Ranikhet etc, is few of the several epidemics that constantly disturb poultry in Nepal. Workers
steal eggs, birds, feed, money and even drugs if they are not properly monitored. Sales agents and
drivers could sell at different prices and report differently. Effective management of this ends are
critical factor.

Work plan:

Activities Baisakh Jestha Asar Sawan Bhadra Asoj Kartik Mansir Poush Magh Falgun Chaitra
1. Shed
construction
2. Purchase of
Day old chicks
3. Transfer to
brooding house
4. Transfer to
cage system
(egg laying
period)
5. Culling of
birds
6. Batch clearing

CONCLUSION
Srinagar agro farm shall be a successful business. Poultry Farming is a highly developed industry. Its
efficacy and productivity is a product of bringing together of all the available industrial facilities, this
can never be provided enough by just one individual or company. Hence, Srinagar agro farm poultry
plan to collaborate with investors and experts. The industry works effectively as a network with
different specialization, bringing in diverse inputs. Also, to avoid overcrowding of ideas and thinning
of the limited resources, focus will be on egg production for a long time under the supervision of an
experienced consulting firm.