However few rural farmers have been able to capture their share of this market due to the over

demanding nature of the purchase conditions.

2.1 Market Potential

Ugandas Investment bureau is encouraging investor s to invest in the hatchery production business in order to meet the market demand for day old chicks and indigenou s poultry. Ug anda has a limited hatchery capacity. As a result, day-old chicks a re in short supply. He nce, the curre nt output can only meet half the domestic demand. Therefore, a great po ssibility for expansion and investment in the poultry sector exists. In Uganda the demand amounts to a tota l of about 8 million chicks of which a pproximately 5 million chicks are produced locally and the remaining 3 million chicks are imported. Due to pro hib itive import pr ices of day-old chicks, fewer chicks are being imported an d there is a vacuum in the supp ly chain. There is an excess de mand n ot met. Hatchery is a potential investment opportunity in Uganda. Curre ntly they are encouraging investment in the establ ishment of a hatchery for the production of day-old chicks to the local market. A complete poultry reproduction unit will inclu de a ha tchery system, a broiler parent stock faci lity, a layer parent stock facility and a rearing farm. The physical structures on the p oultry farm include well-ventilated chicken house structures, fitted with automatic drinking lines ( systems) and feeding systems, a feed mill and generators to e nsure that power is always available to the hatchery. The establishment of a poultry unit will enable us to me et our market demand and also to supply others in terested in rearing local poultry for house hold consumption, selling, trading and cultural and religious activities.

Our target market is the conscious consumer who has bought into the supermarketization who can also be termed as conscious consumers, seeking better taste, health and nutrition. Free-range organic poultry meat and eggs are perceived to taste better than commercial exotic poultry and their prices get double the amount for their market value due to the lack of availability of the product. Examine the table below for more specifics regarding the market potential for organic eggs and poultry.

Average Supply Quantity per household 600/per year 2,500 trays/per year

Average Supply Price for Re-sale 10,000per bird/ 6-7500-per tray

Ma rket Outlets Re-sell Price 20,000per bird/ 10,000 per tray

Supply Form

Poultry Product Growth Rate 54% up from previou s year

Price of Loca l Chicken

Price of Exotic Broiler

Lived and dressed/ Packaged with labeling for resale

5,0008,000 per bird

2,0005,500 per

Retail Price of Loca l Tray of Eggs 10,500 and up

Price of Exotic Tray of Eggs 5,500

Currently we have a market with Uchumi supermarket, one of the largest supermarkets in Kampala and hence Uganda. The supermarket is located in one of the more modernized westernized malls in Uganda, that serves the foreign and elite cliental of Uganda. B elow is a market price for the organic eggs that are labeled, packaged and sold currently. Each Tray represents 3 0 eggs and each pack holds 6 eggs. Therefore, one needs 5 packs to equal one tray of 3 0 eggs.

Numb er of Trays

Numbe r of Packs

Amount of Trays UGS/US

Amount of Packs

Numbe r of Trays

Number of Packs Purchased

Number of Trays Purchased

Amount of Packs Purchase d

1 5 $10,000/4.30 1900 1 5 $7,000/3.00 1400 10 50 $10,000/4.30 9500 10 50 $70,000/30.00 70,000