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Lift Kids – Egg Module

Develop a Poultry Farming Operation

Egg Module Business Plan Feb 2008

Created by Paul Helgeson with the support of many others

LIFT KIDS, INC, 192 MCBOAL STREET, ST. PAUL, MN, 55102 • WWW.LIFTKIDS.ORG
Lift Kids is an IRS approved 501 C (3) non-profit corporation
Table of Contents
Executive Summary...................................................................................................................................... 3
Overview ............................................................................................................................................... 3
Immediate Goals................................................................................................................................... 4
Long-Term Objectives........................................................................................................................... 4
Project Description........................................................................................................................................ 5
Steps ..................................................................................................................................................... 5
SERVE .................................................................................................................................................. 5
Local Market Research................................................................................................................................. 7
Financial Analysis ......................................................................................................................................... 8
Design Experiment Cash Flow Forecasting.......................................................................................... 8
Excel Cash Flow Model ...................................................................................................................... 10
Financial Projection Summary ............................................................................................................ 11
Business Plan Customization ..................................................................................................................... 12
Partners............................................................................................................................................... 12
Fundraising ......................................................................................................................................... 12
Poultry Coop Design................................................................................................................................... 13
Design Considerations........................................................................................................................ 13
Coop Architectural Designs ................................................................................................................ 15
Building Cost Estimates ...................................................................................................................... 20
Operations .................................................................................................................................................. 20
Bird Selection...................................................................................................................................... 20
Feed Supply........................................................................................................................................ 20
Veterinary Care................................................................................................................................... 21
Training ............................................................................................................................................... 21
Sales ........................................................................................................................................................... 23
Expansion ................................................................................................................................................... 24
Phase 1 ............................................................................................................................................... 24
Phase 2 ............................................................................................................................................... 24
Phase 3 ............................................................................................................................................... 25
Legal—An Operating Partnership............................................................................................................... 26
Lift Kids, Inc. ....................................................................................................................................... 26
Appendix ..................................................................................................................................................... 27
Local Market Questions ...................................................................................................................... 27
Additional Background Questions....................................................................................................... 31
Layer Performance Graph .................................................................................................................. 33
Feed Consumption.............................................................................................................................. 34

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Executive Summary  
Overview 
The Egg Module is a replicable business model that details the establishment and operation of a
poultry egg production business. This plan has been created by volunteer experts specifically for
villages in the least developed parts of the world. By empowering villages with the knowledge of
how to produce eggs they will be able to break the cycle of extreme poverty by improving their
nutrition and developing their economies.

The focus of this business module is to create a poultry egg production business that will achieve
the following objectives:

1. Empower villages in the developing world to become small poultry egg producers.
a. The main objective is to reduce food insecurity and malnutrition, especially in
children, by providing an adequate and reliable supply of eggs to local markets in
the developing world.
b. Business operations also aim to stimulate the local economy by adding value to
agriculture outputs and provide an expansion strategy to facilitate a transition
from subsistence farming towards commercial production.

2. Research and understand market conditions in project villages. (The provided


background questionnaire derives both qualitative and quantitative data for analysis.)
a. Qualitative factors include market conditions, land availability, access to
population centers, and local supplier availability. Commitment to
environmentally sensitive agriculture practices is also considered when analyzing
potential project locations.
b. A design experiment methodology is used to estimate cash flow projections and
capital requirements for individual villages. Multiple scenarios are tested to create
quantitative financial projections to more accurately forecast performance under
volatile market conditions.

3. Create a successful and sustainable enterprise.


a. Chicken coops are designed in a way that facilitates the transfer of green
building practices and encourages the use of local building materials.
b. Management oversight is provided to develop leaders and entrepreneurs in the
village. Operational management oversight and guidelines are provided through
partnerships with non-profit and private-sector organizations.

4. Replicate the module. The aim is to introduce poultry operations to 10 major partner
villages by January 2009. The capital cost per village is expected to range from $7000 to
$10,000.

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Immediate Goals 
1. Increase protein consumption and ensure food security in the community.

2. Develop local economy with the introduction of scale-optimized egg production.

3. Facilitate knowledge transfer and management oversight through partnership with Lift
Kids and other private-sector organizations.

4. Achieve positive cash flow once the layers begin production cycle.

Long­Term Objectives 
In addition, the following strategic objectives have been set:

1. Empower youth and the community leaders through creation of a poultry business.

2. Channel business profits to help fund other village facilities, such as schools or
orphanages.

3. Improve environmental, agricultural, and business awareness and understanding in the


area.

4. Facilitate a transition from subsistence farming toward commercial production.

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Project Description 

Steps 
The Egg Module aims to establish poultry egg production businesses in villages in the least
developed regions of the world. The process for developing an Egg Module includes the following
steps:

1. Market Research

2. Financial Analysis

3. Business Plan Customization

4. Fundraising

5. Construction

6. Operation

7. Expansion

SERVE 
The Egg Module was developed using the Lift Kids model of SERVE: Sustain; Educate;
Replicate; Volunteer; Empower.

Sustain Lift Kids has developed a comprehensive model for sustainability, where progress is
measured not only in economic terms: environmental, cultural, health, and social factors are also
considered. Sustainability is viewed as an integrated whole, consisting of these five
interdependent components: Economy, Environment, Culture and Community, Health, and
Security. One of the cornerstones of Lift Kids, Inc. is to create villages that can become
economically, environmentally, and socially self-sustaining. Self-sustaining indicates the village
creates enough revenue through diverse business opportunities to accommodate village
operating expenses. The poultry operation makes up one segment of this operation.

The goal is not to create a village that relies on donations and handouts to sustain their
operations. The goal is to provide opportunities for the children—even at young ages.

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Educate Each Lift Kids village will educate on both fundamental knowledge and specific
vocational affairs, using curriculum provided by the local government and modified for a
comprehensive range of topics, from sex education to social and emotional skills, and also health
and nutrition. Classes will be taught by two credentialed teachers and will also be available, when
appropriate, to children and adults outside the village, with the goal of instilling the importance of
giving back and empowering others. Lift Kids will reach out to the local businesses and schools to
create internship and mentorship opportunities.

Replicate We believe the philanthropic franchise model is the best approach to elevate
communities. Because it’s our model that’s replicable—as opposed to our physical building
plans—we replicate outcomes instead of surroundings. This means we can move fast, create
sustainable change, and ensure that our high standards are met, yet avoid the cookie-cutter
philanthropy that so often alienates partners on the ground.

Volunteer Voluntourism will serve as an opportunity for investors to observe their investments
growing, both interpersonally and financially, by encouraging their hands-on participation.

Empower Lift Kids villages teach both in the classroom and through the experience of working
with each other and the village management, like a family. Each villager will be given a position of
empowerment in the operation of the village’s sustainability business and in maintenance of the
facilities. Additionally, by limiting villages to 40 orphans at a time, we create a more intimate
environment that reaches kids at a very individual and personal level. This combination of action
and individual attention will help kids learn that they are important, that they should take pride in
their community, and that they are capable of impacting their world. It is our hope that this
empowerment will live long after kids graduate from our villages, urging them to leadership roles.

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Local Market Research 
Firsthand research of market conditions is critical in selecting project villages; the Lift Kids
background questionnaire derives both quantitative and qualitative data for analysis.

Each potential Egg Module starts with a market research background questionnaire to determine
the economic and logistical feasibility, as well as the cultural and environmental appropriateness,
of the operation. Qualitative factors such as market conditions, land availability, access to
population centers, local supplier availability, political stability, and commitment to
environmentally sensitive agriculture practices are also considered when analyzing potential
project locations.

The most critical factors are feed and egg expenditures. The questions shown below are
designed to obtain low and high data points, which will enable a design experiment approach for
cash flow forecasting.

1. What is the typical price range for eggs in the village?

Low $ USD per egg High $ USD per egg

2. What is the typical price range of chicken feed in the village?

Low $ USD per Kilo High $ USD per Kilo

For the complete questionnaire, see Appendix (Local Market Questions, Page 26).

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Financial Analysis 
The economic goal of the egg production operation is to generate a positive cash
flow to help the villages become economically self-sustaining. A comprehensive
Excel cash flow model is available to help villages conduct their specific financial
analysis.

Design Experiment Cash Flow Forecasting 
In order to have an idea of the potential ranges of business performance, Lift Kids uses a cash
flow forecasting model that was created using a mathematical approach based in
design experiment methodology. A design experiment methodology allows for the testing
of multiple scenarios. This robust quantitative methodology can accurately forecast multiple
scenarios and give a better prediction of performance under volatile market conditions.

As stated before, within the cash flow model there are two dominant factors: the
cost of the feed and the price of eggs. With high and low data points we design seven
different cash flow experiments, as shown on the table below.

Feed Cost Egg Price

Average Average

Low Low

High Low

Very High Low

Low High

High High

Very High High

The ranges of optimistic and pessimistic scenarios presented in this matrix-based approach allow
Lift Kids to account for market volatility when forecasting business performance.

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Feed costs are determined by taking the price of feed multiplied by the assumed consumption per
bird, per week. The feed prices and consumption rates have three variable levels throughout the
life of the bird, as younger birds consume less feed than older birds, and prices for different feed
formulas may change. Egg prices are assumed to be the market price in the area.

In addition to feed costs and egg prices, our background research also identifies
other key factors, which are listed below. The values assigned to these data
points are derived from our firsthand research done in conjunction with the
village.

Additional Variables
1. Layer Productivity (eggs per bird per week)

2. Yield Loss

3. Initial Construction Costs

4. Feed Consumption (per bird)


5. Number of Starter Chickens

6. Starter Chicken Costs

7. Vaccination Costs

8. Labor
9. Supplies

10. Transportation

11. Savings*

*This is a disciplined savings program that is intended to be put aside for other projects
within the village, additional investment in the operation, or philanthropic projects outside
the village.

Cash Flow Model Assumptions


Our cash flow model makes a few material assumptions as listed below.

1. The cash flow is after factoring variable costs, such as labor,


transportation, supplies, and weekly savings.
2. No consumption factor by the village was factored into the analysis.
3. A typical layer, in conditions of the egg module, will produce 4 or 5 eggs
per week, averaged over its lifetime. Actual performance will decline with
age. See Appendix (Layer Performance Graph, Page 32).

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4. The layers should be sold once cost of feed for the hens amounts to more
than the revenue produced in eggs, typically occurring at about 80 weeks.
5. The analysis does not include the proceeds from the sale of the flock as
broilers, occurring at the end of their productive life. These funds should
be used to purchase new day-old chicks, and the remaining balance can
provide an additional windfall profit.

Excel Cash Flow Model  
Below is an example of the financial analysis from the Excel cash flow model. The blue fields
show the adjustable input variables, while the red arrows point to the critical variables of feed cost
and egg price. The grey tabs allow incremental adjustments to further adjust the analysis.

The most important outputs from the model are the Cumulative Cash Flow (CF) and the Capital
Investment. The Cumulative CF shows the net impact on the village’s cash flow; it is critical that
the Egg Module be a source of cash for the village. The Capital Investment is the amount needed
to start operations. In other words, it is the money required to get the hens laying. This figure
includes the construction costs, other one-time costs, and operating expenditures such as feed
costs.

Revenue Assumptions Cost Assumptions:


Avg Low High

$/egg 0.15 0.10 0.2 Initial Construction 2,500

eggs/ck/wk 4 Chick cost 1.25

Yield loss 0.005 % loss Vaccination cost 0.45

Feed Assumptions: Cost/Kg


Avg Low High Avg Low High Consumption: Kg/bird/

Feed wk 0-8 $/ch/wk 0.065 0.06 0.07 0.325 0.3 0.35 0.2

Feed wk 9-19 $/ch/wk 0.11375 0.105 0.1225 0.325 0.3 0.35 0.35

Feed wk 20-52 $/ch/wk 0.2275 0.21 0.245 0.325 0.3 0.35 0.7

Cumulative CF CF Wk 20 CF Wk 80 Capital Investment Profit / (Loss)


1. Avg Feed Cost and Avg Egg Price $ 2,499.11 $ 168.18 $ 115.67 $ 5,012.84 $ (0.89)
2. Low Feed Cost and Low Egg Price $ (527.86) $ 69.13 $ 42.34 $ 5,034.59 $ (3,027.86)
3. High Feed Cost and Low Egg Price $ (1,269.73) $ 50.13 $ 28.28 $ 5,208.20 $ (3,769.73)
4. Very High Feed Cost and Low Egg Price $ (2,027.78) $ 31.13 $ 14.21 $ 5,381.82 $ (4,527.78)
5. Low Feed Cost and High Egg Price $ 6,276.03 $ 286.23 $ 203.06 $ 4,817.48 $ 3,776.03
6. High Feed Cost and High Egg Price $ 5,534.17 $ 267.24 $ 188.99 $ 4,991.09 $ 3,034.17
7. Very High Feed Cost and High Egg Price $ 4,776.11 $ 248.24 $ 174.93 $ 5,164.71 $ 2,276.11

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Financial Projection Summary
This analysis allows us to estimate high and low ranges for total chick capital costs, which is the
total amount of cash that is needed before the birds start laying eggs. This figure is important
because if the village does not have adequate funds to purchase feed or veterinary care, then the
long-term performance of the flock could be compromised. It is imperative to keep the following
factors in mind:

1. To maximize cash flow, feed cost needs to be minimized and egg price
needs to be maximized.
2. Feed quality can not be sacrificed. Long-term, it would be wise to
investigate methods for creating feed supplements. (For example,
sunflower mash has excellent potential to be used as a feed component
and would dramatically reduce the feed costs.)
3. Theft and excessive yield loss are major risks to the operation.
If the project is feasible, the next step is to customize the business plan for the specific village.
Building size, location, design, and construction materials should also be specified at this stage.
Other critical success factors include the supply of chicks, feed, vaccinations, and training of on-
site management. Finally, the path to market needs to be determined and price assumptions
should be verified. The customized business plan will give each village a reasonable estimate of
egg production output, as well as capital requirements and profit potential.

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Business Plan Customization 
Using the results of the cash flow projections and the information included in this document, a
customized business plan can be developed. This business plan will detail the specific business
opportunity for an individual village. Beyond the financial forecasts, the customized plans can
also provide details on partners and fundraising strategies.

Partners 
Villagers
The primary beneficiaries of our efforts are, of course, the people in the village. Our model is built
and refined around their self-interest and development goals. Technology transfer, local
investment, economic stimulation, and environment sustainability are components of our design.

NGOs
Lift Kids always seeks to do business with a trusted partner NGO. This relationship is critical for
implementing the egg module into a successful and customized solution. Our NGO partners not
only provide on-the-ground oversight, but could also contribute funds and other resources.

Corporations
Our corporate partners are crucial to the success and replication of the Egg Module. Not only do
they provide financial backing, but they also are a valuable source of expertise. We hope to
facilitate long-term relationships with our corporate partners and the villages they sponsor.

Fundraising
Individual villages will be responsible for some fundraising or financing. Ideally, Lift Kids will be
able to supplement part of the project, contingent upon current financial resources.

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Poultry Coop Design 
Design Considerations

Space requirements 
The Lift Kids coup design necessitates 1.5 square feet per bird. Therefore, a
600-bird coop should have a minimum of 900 square feet (or 300 square
meters). Our building design calls for a building 20 feet wide and 45 feet long,
plus an additional 5 to 10 feet in length for a storage room. However, the length
can be tailored for different flock sizes. For example, a coop for a 500-bird flock
would need to be 20 x 37.5 feet.

Scope 
The poultry operation will consist of an initial coop capable of housing either 50-to-100 or 500-to-
600 birds. The two tiers allow villages to experiment with different levels of risk. The smaller coop
may be more appropriate in isolated villages where there is limited access to markets and
supplies, especially feed. The issues of disease management, temperature control,
and predator theft (human and animal) are key in this design decision.

Nests 
Birds need privacy when laying the eggs. The glistening and shiny appearance of
the wet egg can trigger cannibalism against the egg and against the hen laying
the eggs. 4 birds can share a nest; each nest is about 2 ft x 2 ft. A typical flock of
600 birds would need 150 nests. Nests can be double-stacked and run along
both the sides and center of the coop.

Light control 
Young birds need dark conditions, while mature birds lay more eggs with
increased light. The birds sense light through their skulls, not just their eyes. The
maturation process is enhanced by managing the light. Due to these factors, the
ability to control light is desirable and should be incorporated in the design and
construction of the barns.

Temperature control 
Natural ventilation and cooling is critical in considering temperature control
through coop design. In cold climates or higher elevations, temperature control
will require heating systems. (Heating systems are also required for the arrival of
day-old chicks.)

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Insulation 
To hold down the roof temperature and prevent heat radiation during sunny days,
it is necessary to insulate the roof to an R-value of 5. Material like 1-inch-thick
foam-type insulation with hard fiberglass (or similarly durable material) glued to
the lower side should prevent birds and other critters from pecking or chewing
away material from the underside of the roof. A thatched roof could provide an
effective R-value.

Ventilation 
An effective method for ventilation would be a continuous 6-inch-wide ridge
opening running the length of the building. To prevent rain from entering the
coop, the ridge opening should be capped with a small roof-type structure that is
12 or 14 inches wide, located 12 inches above the ridgeline. This will allow warm
air to exit the opening without being restricted by this ridge cap.

Feed control 
Feed should be distributed simultaneously to the entire flock. Otherwise, birds
lower in the pecking order will be crowded out and will not get enough feed, while
large birds will over-consume.

Water 
A continuous supply of water is vital for layers. Nipple drinkers are ideal for
preventing disease; a ratio of 1 nipple per 15 hens is preferred.

Capturing rainwater reduces labor and may be essential if the coop is located far
from a well. Rain barrels will collect and hold water from the roof during storms.
This storage tank will be connected to an interior nipple drinker system. Excess
water could also be channeled into a drip irrigation system for a garden around
the coop.

Floor 
Concrete is the preferred flooring material for Lift Kids coop designs. A separate
roost area helps manage the waste products. It is preferable to avoid hard
woodchip floors.

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Isolation 
Coops should be in a relatively isolated part of the village, as isolation is
imperative for mitigating the risk of disease outbreak. Therefore, it is advised to
keep the coops in the back of the village, away from roads, paths, and other
highly trafficked areas. Human traffic should be limited to as few people as 
possible; ideally only 2 or 3 people would ever have access to the coops. In
addition to limiting human traffic, it is vital to limit the exposure to wild animals.
Sturdy building, as well as tree-trimming above the coop, will reduce the chances
a wild animal will enter or contaminate the coop. Finally, ventilation is an
important consideration; building the coop in an open area will facilitate natural
ventilation.

Coop Architectural Designs


The Lift Kids team designed coops in conjunction with Dr. Jacqueline Jacobs in
the Poultry Science department and Dr. Larry Jacobsen in the Agricultural
Engineering department at the University of Minnesota Extension Service. Dr.
Jacobs has had extensive experience in Africa, specifically in Kenya.

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The design concept has been further developed by Bee Cha, with BWBR
Architects.

The above design is based off of a stick frame design that can be modified to fit the needs of the
villages. The stick frame design provides the structural support and natural ventilation. Once the
core is framed, additional sections can be modified to allow for the use of local materials and
traditional construction techniques. The each section, roof, walls, floor, equipment, water can be
modified to fit the needs and resources available to the village. For example, the cost of the floor
could be eliminated by having a dirt floor, or the entire structure could be built on posts with an
elevated floor deck to prevent infestation of rodents or damage from flooding. Exterior walls can
be built in a variety of different ways. A variety of materials can be used, from stacked rock to
cob construction, mud, hay, etc. the costs could be reduced through the use of indigenous
material.

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Building Cost Estimates
Obviously, the construction costs should be minimized. Effective ways of doing this is by the use
of local material and construction techniques. The building plans put forth in this document are
mainly to outline design elements. Therefore adapting the design to local build customs is
appropriate.

Land Cost  
Coops will be built on property currently owned by or available to the village.

Operations 

Bird Selection 
Typically there are several suppliers for the day-old chicks, and several breeds of chicken are
available. Doug Grieve at Hy-Line (who can be contacted at dgrieve@hyline.com) is an expert on
international sourcing and can advise which breed and supply would be best for a given area.

Feed Supply 
The availability of feed is perhaps the most integral factor impacting the success of the Egg
Module. It is critical to have a dependable source of high-quality feed. Often, local feed mills will
produce a variety of feeds and can advise as to which local variety is best for the current lifecycle

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of the bird. In terms of operational profitability, it is essential to analyze and control the cost of
feed.

In addition to price, quality is very important, with heavy emphasis on the protein content. Ideally,
feed should have about 20% protein; other minerals and vitamins can also enhance the feed
performance. Testing of feed nutrients can be done by Gold'n Plump.

Feed consumption will increase as the birds age. For an example of this increase please see
Appendix (Feed Consumption, Page 33).

Free-range grazing is another source of feed for the birds. Our barns are designed to provide the
birds with access to the outside. However, allowing the birds to roam does have some added
risks. There is a higher chance of the introduction of disease, which can be minimized by keeping
the birds away from other wild animals and limiting the number of people who are in contact with
the flock. Additionally, there is an increased chance of loss due to predators or theft, and the
chickens may wander. It is recommended that the flock be confined to a fenced area, cleared of
trees and branches, when it is grazing.

Veterinary Care 
Locally available veterinarian care services are crucial in caring for the chickens. An experienced
vet is a valuable asset for maintaining bird health and training. The vet should be capable of
procuring and administering vaccines. Vaccinations need to have a cold-storage supply chain,
which may entail short-notice delivery and administration.

Training 
Comprehensive training successfully addresses brooding practices; feed and feeding practices;
factors impacting growth and development of chickens; factors impacting the egg production;
disease recognition and management; molting management; and record keeping and accounting
principles. These areas are covered in this document, but firsthand training will greatly help the
success of the project.

Training will be carried out at three levels. The first level is the formal training provided by the
local suppliers or veterinarians. Most have classes that teach the finer points of raising chickens.

At the second level, the community shares personal experience. Often, the youth in the
community have had experience in their family poultry operations of 25 chickens or less. To build
on this experience, we suggest they visit and observe some of the larger poultry operations in the
region. If possible, they are advised to volunteer or work in these operations. In addition to poultry
management practices, the Egg Module can help provide the village school with subject matter
for science and business courses.

At the third level, Lift Kids facilitates the technology transfer for the US poultry industry. We edit
US management guides to be scale-optimized for village-based small flock production. These
guides are reviewed by experienced managers in the industry. Also, Lift Kids hopes to facilitate
voluntourism of poultry experts and university students. Experienced poultry professionals
spending even a short time on the ground can make a significant contribution towards training a
few key managers.

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Sales 
The Egg Module has potentially 4 main channels to the market. Each channel should be tested to
determine the most successful route to the customers. Ideally, village-level consumption will be
satisfied before moving on to larger markets.

1. Village Center 
A store will be created in the center of the village and people will come to the village to
purchase the products. The advantage is the low cost of sales and transportation.

Local schools and orphanages are expected to be main customers in this channel; it is
expected that children will consume some of the eggs in the orphanages or schools. This
consumption should be tracked, and if possible, subsidized.

2. Kiosks 
A stand along the major road or highway can be built and staffed by people of the village. Here,
there is the added possibility of selling agricultural products other than eggs and poultry. Meal
preparations can add value and increase profitability in this channel.

3. City Center 
Large population centers typically have large open-air markets that service the residents of the
area. This channel has greater competition and higher sales costs, as well as more complex
logistics (for example, access to a truck for transporting items). This channel would best be
served by villages that can achieve economies of scale by operating multiple coops.

4. Institutional Channels 
Restaurants, hotels, hospitals, and urban schools have a more uniform demand and can be
regular customers; long-term contracts are possible. Delivery and service are important to this
channel. Operating multiple coops can help provide the production redundancy necessary to
provide reliable service.

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Expansion 

Phase 1 
Construct an initial coop capable of housing a flock of 500 to 600 birds. The goal of this phase is
to experiment. The experiments are meant to assess the production ability of the village, test the
channels to market, and verify the market prices. This phase also includes the cost of training
and refining operations. The cash flow model and development goals will be re-evaluated based
on the output of this experiment.

Additionally, the first phase will develop local leaders, managers, or entrepreneurs; these
individuals will be instrumental in taking the Egg Module to the next phase. At the end of Phase 1,
approximately 1 year from the arrival of the day-old chicks, the assumptions in the initial business
plan will be tested against the results from Phase 1. This assessment will determine the strategy
for expanding operations.

Estimated cost for Phase 1 = $5,000 to $10,000

Phase 2 
The goal of this phase is to expand the scale of operation by the construction of additional coops
and further enhancements. The rate and scale of this expansion depends on the results from
Phase 1. As these questions are answered, the plan can be adjusted and modified as the
operation is expanded.

Greater production capacity can be achieved by constructing multiple coops, which will enable
the economies of scale to drive down production costs. Redundant coops will also allow the
villages to more reliably serve its customers, especially as older flocks are replaced—or in case a
flock dies due to disease outbreak. To manage the risks of disease, it is advised to have the
individual coops spaced at least 1 km apart. Phase 2 allows the villages to scale up poultry
production by building multiple coops and to focus on this as a major economic activity.

This phase could, in part, be financed by cash flows from the first coop, or perhaps the manager
could take a loan.

Estimated cost for Phase 2 = $2,000 to $6,000

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Phase 3 
Phase three focuses on incremental improvements in laying performance. This can be achieved
through additional investments in barn equipment, specifically by adding automated lights and
feeders. Strict lighting and feeding programs can greatly increase laying performance. Additional
investment can be made in effective ventilation, which helps to reduce bird stress.

The cost of Phase 3 is highly variable and is to be implemented as a continuous improvement


campaign.

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Legal—An Operating Partnership 
Lift Kids will enter into an Operating Agreement with our partnering NGO. The general terms of
this agreement include monthly updates from the village (news & financials), consultation for
expansion, the right to include the Lift Kids name, and the ability to send volunteers.

The actual work on a day-to-day basis will be performed by a local management team in
partnership with Lift Kids.

Lift Kids, Inc. 
Lift Kids, Inc. is a registered Delaware corporation based in St. Paul, MN, and is registered as a
501(c)3 tax-exempt organization with the IRS. It was formed in 2006 by Joseph Barrett, the sole
board member at this time. As the organization continues to grow, the board will be expanded to
include representation of major donors.

In addition to the Board of Directors, there is a Leadership Team that guides the direction of
projects the organization takes on. Members of this team are chosen based on their commitment
to the organization; they tend to be the individuals who have given the most time to make the
organization a success. Current team members include Joseph Barrett, Paul Helgeson, Nathan J.
Miller, and Ben Stevens. Jeff and Kim Janssen also serve in an advisory capacity.

The mission of Lift Kids, Inc. is to feed, shelter, and educate children by partnering with
organizations on the ground to create small, sustainable villages according to a model that can
be replicated around the world.

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Appendix 

Local Poultry Market Questions 
These questions are intended to allow Lift Kids to understand the local market for poultry: how it
is used; how it is purchased; how the competition works; and some of the conditions of the local
environment. The answers provided here will serve as the input data for a Lift Kids Egg Module
business plan.

If you have any questions, please contact Paul Helgeson at (612) 790-0359 or
phelgeson@liftkids.org.

General Information 

Village Name Date


Location: How far is the village from a large population center?
City Name + Population Size
Distance
Travel Time
Road Conditions

Preliminary Market Questions 

1. What is the typical price range for eggs in the village?


Low $ USD per egg High $ USD per egg

2. What is the typical price range of chicken feed in the village?


Low $ USD per Kilo High $ USD per Kilo

3. How many birds the village would like to start with?


50-100 birds 400-600 birds 1000+ birds

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Production 

1. Are there currently chickens in the village?


Yes No
If yes, how many broilers (meat birds)?
If yes, how many layers (egg birds)?
2. Does the Village have a chicken coop?
Yes No
If yes, please provide a description
3. Does the Village have managed agriculture?
Yes No
If yes, what crops?
How many acres?
4. What is the climate of the region? Does it freeze or get very hot?
5. Does the area have clean water available?
Yes No
6. Does the area have electricity available?
Yes No
7. Notes

Consumption 

1. Approximately how often are eggs consumed by the average person?


Daily Weekly

Special Occasions Whenever affordable

Never
2. What are the biggest obstacles to egg consumption?

3. Where do people purchase the eggs?

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4. Is there any sort of packaging for eggs?

5. How are eggs transported to the market? Foot? Bicycle? Truck?


6. Approximately how often is meat consumed by the average person?
Daily Weekly

Special Occasions Whenever affordable

Never
7. What are the biggest obstacles to meat consumption?

8. What are the other sources of protein in people’s diets?

Notes

Production 

1. Is there a source of day-old chicks?


Yes No
If so, what is the source?
What is the cost per chick?
Is delivery of the chicks available on a regular basis or on short notice?
2. Is there access to animal vaccines and veterinary services?
Yes No
If so, who provides these services?
3. Are there multiple suppliers of chicken feed?
Yes No
If so, who are they?
Are they able to deliver the feed on a regular basis or on short notice?
4. What kind capability is there to produce chicken feed in the village?

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5. Is there a desire to create a holistic, environmentally sensitive, sustainable agricultural
operation in the village?
Yes No
If so, what projects are currently underway?

Construction

1. The ideal location for a coop is somewhere isolated in the village, away from human
traffic and with limited exposure to wild animals, yet in an open area that will facilitate
natural ventilation. Please draw a map or explain potential coop locations.

2. How much land is available for the operation?


3. Our coop design focuses on using local construction material. What construction
materials are available in the village?

4. Are any construction materials (such as bricks) manufactured in the village?

5. Being able to wash and disinfect the coops between flocks is important. Is your village
able to build the coop in a way that could withstand an occasional scrub?

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Additional Background Questions  
The following questions may aid in a rhetorical discussion on the feasibility and operation of an
Egg Module.

1. Market Questions 

a. How much profit is desired from the poultry and egg operation? $5,000? $20,000? (This
helps us plan the scope.)
b. What are the segments of the market? What are the prices for each segment?
c. Do customers want the poultry live or slaughtered?
d. Why don’t people eat chicken or eggs?
e. What is most preferred about chicken and/or eggs?
f. What is least liked about chicken and/or eggs?
g. What is the competition today for the different market segments for chicken and/or eggs?
h. In the next 5 years, what is the most likely competition?
i. How popular is refrigeration for the different market segments?
j. How much will be consumed by the people in the direct community and what will be the
price paid by internally used poultry?

2. Channel to Market 

a. What is the sales process to each market segment for chicken and/or eggs?
b. What is the payment method? Cash? Credit? Contracts?
c. What is the distribution process to the market?
d. Who will be the sales staff for each market segment?
e. What is the proposed cost of sales?

3. Personnel Issues 

a. Who are the people responsible for the operation?


b. What are the concerns of the individuals that would be running the operation?
c. What are the hopes and dreams of the individuals running the operation?
d. How committed are the individuals?
e. What experience do the people have in raising poultry?

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4. Technical Issues 

a. How much land is available for the operation?


b. Are electricity and/or water available at the proposed sites?
c. Is there a desire to create a holistic, sustainable agricultural facility? (For more
information on how to achieve this, consult Pastured Poultry Profits, by Joel Salatin.)
d. What are the sources and descriptions for the following necessities:
-Feed
-Starter chicks (broilers and layers)
-Vaccinations
e. Are there multiple sources for the supplies?
f. In the plans sent, how many square feet are there per coop?
g. Are the floors made of concrete?
h. What are the disease-prevention steps taught in the region?
i. Would a centralized operation be preferred or many small-batch operations? (Small-
batch operations may offer greater bio-security.)
j. What are your biggest fears of the operation?

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Layer Performance Graph 

The graph above shows a hen’s daily production over its lifetime. The actual performance will
vary due to many factors: breed, bird health, light, feed, water, and temperature all affect
production, and results will probably be much lower in actual Egg Module applications. If the birds
laid an average of 5 eggs per week, that would equate to a 70% daily performance, which is the
level of output occurring at week 80 on the above graph. For the sake of the Egg Module, daily
production values of 4, 5, and 6 eggs per bird per week should be tested.

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Feed Consumption 
Body weights and feed requirements of leghorn-type pullets and hens1.

Body Feed Typical Egg


Age Weight Consumption Production
(weeks) (g)* (g/week)** (hen-day %)

0 35 45 --
2 135 90 --
4 270 180 --
6 450 260 --
8 620 325 --
10 790 385 --
12 950 430 --
14 1,060 460 --
16 1,160 460 --
18 1,260 460 --
20 1,360 460 --
22 1,425 525 10
24 1,500 595 38
26 1,575 665 64
30 1,725 770 88
40 1,815 770 80
50 1,870 765 74
60 1,900 755 68
70 1,900 740 62

1
Source: http://www.afn.org/~poultry/flkman9.ht

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Management Guides from Kenchic 

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36
37
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