Final Proposal

 

Thali Poultry Firm, Thali, Kathmandu

 Loan Proposal for Poultry Farming  

Why Start a Poultry Farm?

There are quite a great number of things that are highly needed by man as a nutritious source of food that is gotten from the poultry. Chief amongst them is them the egg. Poultry farms all over the world has egg as one of its primary produce and that is why people will continue to look to poultry farms to churn this out. It is for this reason that it can be said that poultry business has come to stay. If you think that you will like to start a poultry related business, you will first of all need to learn the ropes. Also undertaking a thorough and exhaustive research is also one of the tasks tasks that you will be saddled saddled with. Thereafter you might be required to do some apprenticeship as you will need to have some firsthand experience on how a poultry farm is being run. If all that has been done, you will need to have at the back of your mind that writing a business plan is a thing of great importance. There are loads of business experts who live on writing business plans for people like you who may not be conversant with the art.

 

Thali Poultry Firm, Thali, Kathmandu

You may not know what writing a business plan entails. This is why you might require a business plan template to work with. Here below is a sample poultry plan business plan for your use; 

Business Overview

The agricultural industry of which poultry farming and egg production is a subset of is no doubt among the leading industry in most countries of the world; it is the industry that produces chicken and eggs for the populace. Because of the significant role the agriculture sector plays, the government of most countries ensures that they go all the way to subsidize seedlings, fertilizers, and farming implements and machinery for farmers and also encourage entrepreneurs to go into commercial farming (poultry farming inclusive). Hens, various birds, quails, guinea fowls, ducks etc all are all birds that can be comfortably reared in a poultry farm. Chicken and birds are widely consumed in all parts of the world hence there is a large market for poultry farmers. farmers. If you are looking towards starting a livestock breeding business, then one of your options is to settle for poultry farming. Poultry farming is a highly thriving and profitable business venture. Aside from the fact that people consume birds and chickens et al, supply of eggs is also a major source of revenue generation for poultry farmer. Players in the poultry farming and egg production industry basically raise chickens for meat, and egg production. The eggs produced may be sold for use as table eggs or hatching eggs. The Poultry Farm and Egg Production Company Industry is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries such as Nepal  as Nepal , India, Sir-Lanka, Bhutan and Pakistan. Statistics has it that in the Nepal  the  Nepal  alone,  alone, there are about 6,000 licensed and registered poultry farm and egg production company directly responsible for employing about 80,800 employees and indirectly responsible for employing roughly 339,900. The industry rakes in a whooping sum of Rs.10 billion annually with an annual growth rate projected at 6.1 percent. It is important to state that the establishments

 

Thali Poultry Firm, Thali, Kathmandu

with a lion share of the available market in this industry are mostly located at Kathmandu, Dhading and Chitwan. Statistics also has it that an estimate of about 35 companies is involved in the business of raising, processing and marketing chickens on a commercial level; It is on record that Nepalese consumption for chicken is increasing (more than 90 pounds per capita in 2015), the number one protein consumed in Nepal. So also, in 2015, almost 9 million broiler chickens, weighing 53 million pounds, live – weight, were produced. More than 60 million rupees of chicken product was marketed, measured on a ready-to-cook basis. Nepalese poultry industry is increasing every other day. Research conducted shows that the top 5 broiler producing districts in the Nepal are Chitwan, Dhading, Kathmandu, Kavre and Makwanpur. If you are looking towards leveraging on the agriculture industry to generate huge income, then one of your best bet is to start a poultry farm and egg production business. One thing is certain about starting poultry farming and egg production business, if you are able to conduct your market research and feasibility studies, you are more likely not going to struggle to sell your eggs and chickens because there are always food processing companies and consumers out there who are ready to buy from you. 

Market Trends

The Poultry and Chicken Egg Production industry has greatly benefited from campaigns advertising the health benefits of chickens and eggs as a good source of protein. No doubt, the increased demand of chicken and eggs from households and food related businesses and of course the growing popularity of specialty and processed eggs have rapidly improved revenue growth for the industry. In the face of this growth, profit margin has suffered from rising feed costs and also regulations regarding animal welfare. As a matter of fact, one of the new trends is that with the recent advancement in technology, poultry farmers can now comfortably predict and produce the quantities of chickens / birds and eggs per time. 

Our Target Market

 

Thali Poultry Firm, Thali, Kathmandu

Naturally, the target market of those who are the end consumer of commercial poultry farm produce and also those who benefits from the business value chain of the poultry farming and egg production industry is all encompassing; it is far – reaching. Every household consumes produce from commercial poultry farms be it chicken or egg. So also almost all hotels and fast restaurants sell chicken and eggs. In essence a commercial poultry farmer should be able to sell his or her chicken and eggs to as many people as possible. In view of that, we have positioned our business to attract consumers of chickens and eggs not just in Kathmandu in Kathmandu Valley  alone but also other parts of the Country Valley alone Country.. We have conducted our market research and survey and we will ensure that we meet and surpass the expectations we set for the business. Below is a list of the people and business that we will market our chickens and eggs to; 

Households



Individuals



Hotels



Restaurants



Fast food eateries



Agriculture merchants

Our Competitive Advantage

It is easier to find entrepreneur flocking towards an industry that is known to generate consistent income which is why there are more commercial poultry farmers in Nepal  in Nepal  and  and of course in most parts of the world. For example, Statistics has it that there are 0.2 million farms in Nepal, covering an area of 9 million acres. These goes to show that there are appreciable numbers of farmers in Nepal but that does not mean that there is stiffer competition in the industry.

 

Thali Poultry Firm, Thali, Kathmandu

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming cum poultry farming and egg production business. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.  is fully aware that there are competitions when it comes THALI POULTYR FIRM  is to selling commercial farm produce all over the globe, which is why we decided to carry out thorough market research so as to know how to take advantage of the available market in Nepal and in other parts of the world. We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable poultry farming and egg production processes that can help us sell our produce at competitive prices, good network and excellent relationship management. Another competitive advantage that we are bringing to the industry is the fact that we have healthy relationships with loads of major players (agriculture merchants) in the industry; both suppliers of poultry feeds and medications and buyers of chickens and eggs within and outside of the Kathmandu Valley. We have some of the latest commercial poultry farming tools and equipment that will help us raise and produce eggs in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in the field of poultry. Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups commercial poultry farms and egg production companies in Nepal) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives. We are quite aware that the reason why some commercial poultry farms and egg production companies hardly make good profits is their inability to sell off their chickens and eggs as at when due. Our sales and marketing team will be recruited based on their vast experience in the poultry farming and egg production industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of THALI POULTYR FIRM .

 

Thali Poultry Firm, Thali, Kathmandu

Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and businesses that rely on daily supply of chicken and eggs from the poultry farms and egg production industry that are likely to become our customers. In summary, THALI POULTYR FIRM  will  will adopt the following strategies in marketing our commercial farm produce; 

Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry, households, hotels and restaurants and agriculture produce merchant's etc.



Advertise our business in agriculture and food related magazines and websites



List our commercial poultry farms and egg production business on yellow pages ads



Attend related agriculture and food expos, seminars, and business fairs etc



Leverage on the internet to promote our business



Engage in direct marketing



Encourage the use of word of mouth marketing (referrals)

Our Pricing Strategy

Some of the factors that will help you sell your farm produce at the right price that will guarantee that you make profits is dependent on your strategy while some of the factors are beyond your control. For example, if the climatic condition is unfavorable and if there is natural disaster in the location where you have your commercial poultry farm, then it will directly affect the prices of your chicken and eggs. Over and above, if you want to get the right pricing for your chicken and eggs, then you should ensure that you choose a good location for commercial poultry farm, choose a good breed that will guarantee bountiful harvest, cut the cost of running your poultry farm to the barest minimum and of course try as much as possible to attract buyers to your poultry farm as against taking your eggs and

 

Thali Poultry Firm, Thali, Kathmandu

chickens to the market to source for buyers; with this, you would have successfully eliminate the cost of transporting the goods to the market and other logistics. We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our eggs and chickens is to sell them at competitive prices hence we will do all we can to ensure that the prices of our poultry farm produces are going to be what other commercial poultry farmers would look towards beating. One thing is certain; the nature of commercial poultry farming makes it possible for poultry farmers to place prices for their eggs and chicken based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. 

Payment Options

The payment policy adopted by THALI POULTYR FIRM  is  is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the Country. Here are the payment options that THALI POULTYR FIRM  will  will make available to her clients; 

Payment via bank transfer



Payment with cash



Payment via online bank transfer



Payment via check 



Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for chickens and eggs.

 

Thali Poultry Firm, Thali, Kathmandu

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means (conventional and non – conventional means) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means. We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our commercial poultry farm and egg production business. Below are the platforms we will leverage on to boost our commercial poultry farm and production brand and to promote and advertise our business; 

Place adverts on community based newspapers, radio stations and TV stations.



Encourage the use of word of mouth publicity from our loyal customers



Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook Facebook ,Twitter, LinkedIn, LinkedIn, Snapchat, Badoo, Badoo, Google+ and other platforms to promote our business.



Ensure that our we position our banners and billboards in strategic positions all around Kathmandu.



Distribute our fliers and handbills in target areas in and around our neighborhood



Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of THALI POULTYR  FIRM and the poultry produce we sell



Advertise our business in our official website and employ strategies that will help us pull traffic to the site



Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

Generating Funding / Startup Capital for Thali Poultry Firm, Thali

 

Thali Poultry Firm, Thali, Kathmandu

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as commercial poultry farming. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.  is a family business that is solely owned and financed THALI POULTYR FIRM  is by Nepal Bank Limited  by Nepal  and his immediate family members. We do not intend to Limited  and welcome any external business partner, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend generating our start – up capital; 

Generate part of the start – up capital from personal savings



Source for soft loans from family members and friends



Apply for Agriculture loan from Nepal from  Nepal Bank Limited  Limited .

 N.B: We have been able to generate about Rs.15,00,000 (Personal  N.B: We savings Rs.10,00,000 and soft loan from family members Rs.5,00,000) and we are at proposing proposing to obtaining obtaining additional loan facility of Rs.35,00,000 on our existing limit of Rs,45,00,000.00 from Nepal from Nepal Bank Limited  Limited . All the papers and document have been signed and submitted, the loan has been applied with this proposal and any moment from now our account will be credited with the amount. The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop. One of our major goals of starting THALI POULTYR FIRM  is  is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our chickens and eggs a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

 

Thali Poultry Firm, Thali, Kathmandu

 will make sure that the right foundation, structures and THALI POULTYR FIRM  will processes are put in place to ensure that our staff welfare are well taken of. Our firm’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. As a matter of fact, profit-sharing arrangement arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Loan Proposal Details for Rs.8000K Thali Poultry Firm located at Thali, Kathmandu was registered under the concerned department as on 2068-10-08 and since then it has been running smoothly as per the registration. The firm was initially started with 5000/chicks capacity and gradually it has increase to 21000/chicks at present.

 

Thali Poultry Firm, Thali, Kathmandu

1)  Registration and Operation Details Office

Regd No.

Date

Department of Cottage & Small Scale

37467/1247

2068-10-08

Inland Revenue Office

600436274

2068-10-13

 

 

Thali Poultry Firm, Thali, Kathmandu

i.

Ownership (%):  100% ownership ownership with the proprietor proprietor

ii.

Proprietor:

Ganesh Maya Duwal

iii.

Successor: 

Their son Sagar Bhadra will be the successor of

the business. iv.

Management: Proprietor Ganesh Maya Duwal and spouse of

proprietor Surya Bhadra are the key person of the firm. They look after daily activities. Besides, their daughter and son help them in feeding the chicks in mornings and evenings. v.

Business:

a. Obje Objective ctive:: Earning Earning profit profit through through the the sales sales of local chick chicken. en. b. Raw material material requir requiremen ementt and availabil availability: ity: The small small chicks chicks are available from different sellers from Kathmandu Valley. c. Supp Suppliers liers:: The firm general generally ly buys from from Kathmand Kathmandu u Hatchery, Hatchery, Hattiban. d. Mark Market et availabilit availability: y: Local and various various places places of Kathmandu Kathmandu Valley. Valley. e. Buyers: The firm sells purchaser of Baneshwor, Jorpati, Maha Bouddha and other various places of Kathmandu Valley. Local people from Mulpani, Danchhi, Indreyani and Sankhu also come at buy at retail price. f. Competito Competitors: rs: Mainly Mainly there there are small small poultry poultry firm firm who only only sell sell locally locally but Thali Poultry Firm is the biggest poultry firm in the area. g. Othe Others: rs: The firm firm has capacity capacity of about about 12500 local local chickens chickens however however with lack of working capital the firm is keeping only 9500 chickens.

vi.

Credit History :

 

Thali Poultry Firm, Thali, Kathmandu

enjoying ng Agricultu Agriculture re Loan Facilit Facility y of Rs.45,00,0 Rs.45,00,000.00 00.00 a. The firm is enjoyi form Nepal Bank Limited. b. The firm has has applied applied for additiona additionall Rs.35,00,0 Rs.35,00,000.0 00.00 0 with this proposal.  2) Capacity Details: Details: The firm presently has the capacity of 21000/chicks which is housed in six different facilities. All the facilities are constructed on the property owned by the proprietor Mrs. Ganesh Maya Duwal bearing plot No.#805,564,12 No.#805,564,1227,876,875 27,876,875 and 877with area 2-2-0-1. Facility Type

No of Storey

Area in Sq. Ft

Capacity

RCC Building

4.5

4569

3600

Tahara 1

1

2000

2000

Tahara 2

1

2000

2000

Tahara 3

1

2000

2000

Load Bearing 1

3

2200

6600

Load Bearing 2

3

2200

4900 TOTAL 21,100

   3) Loan requirement requirement Details The firm is currently utilizing Agriculture Loan of Rs.45,00,000.00 from Nepal Bank Limited, Sankhu Branch. The firm is in requirement for additional funds for smooth operation of the business. Mrs. Ganesh Maya (Proprietor) has been using financial help from Families and Friends for insufficient amount to run the business. Loan Type

Current Approved Additional

Total Limit after

Limit

approval of

Proposed

additional

 

Thali Poultry Firm, Thali, Kathmandu

Agriculture

4500000

3500000

8000000

WC

 4) Cost Estimation Estimation Details Materials required: 1. Chicken 21000 2

2. House (10 x 4)x 24 ft  (expect gallery), 3. Feeder 16 and waterier 16 4. Electric bulb of 60 watt-22 and holders 22 and electric wire 5 coils, record file and pen. 5. Bucket 30, mug30 and, weighing balances 6. Addi Additives tives electro electro care, care, vimero vimerol, l, etc. and and vaccines. vaccines. 7. Litter Rice Husk 150 sacks, Lime 150Kg 8. Giriraj was taken from the company - UTTAM HATCHERY, Narangarh, chitwan. 9. Feed was taken from the company – NABGANGA FEED SUPPLIERS, Narayangarh, Chitwan.

Budget summary

Particulars Disinfectants (korsholine)

Quantity

Rate

Amount

1000

550

550000

5000(sacs)

560

2800000

5000

95

475000

160 ml vile Litter ( Rice husk ) sacks Lime (kg)

Remarks

 

Thali Poultry Firm, Thali, Kathmandu

 

Vaccine(times) Ranikhet Vaccine

75000

Gumbaro Vaccine

125000  

Feeds (B1/B2 for 8 weeks ) Kg

3500 kg 4050 kg

B1 B2

500 750

1750000 3037500

 

Additives Vimeral

665

552

367080

Electrocare

425

335

142375

Furasol

225

485

109125

Chicks 1 day

21000

85

1785000

Bulbs 60 watt Bulb holders

22 22

30 20

660 440

Electric wire coil

2

1300

2600

Bucket

60

310

18600

Mug

60

65

3900

Labour

8

12000/mnth

1152000

 

 

Administrative Expenses

75000 75 12469280  

Grand total cost

 Income Summary Summary: Particulars Giriraj bird

Rate

Tota tall live weight (K (Kg g)

Total amount (Rs)

225

80000

18000000

10

5000( sacs)

50000

live/kg Droppings/Litter

Total Income

Proft = 18050000 – 12469280 = 5580720

18050000

 

Thali Poultry Firm, Thali, Kathmandu

and d Performance:  5) Operation an

Performance of birds under supplied feed

Cost of producti tio on

Quality of pr pro odu ducction

Material and method Site selection: Rearing of chicks is done in poultry shade at livestock farm of Thali Poultry Firm, Kathmandu. The house is well ventilated there was facility of storing feed, water, lighting and many other related facility.

Preparation of brooder and brooding house: Brooder is cleaned on order to make free from the dust and drooping and to prevent spread of disease to the chicks. Brooder is cleaned or washed with the help of surf and water mixing with phenyl. After cleaning the brooder its parts are assembled and heater and lightning is checked. Cleaning and disinfection of brooder house: The movable equipments such as feeder and waterier are removed from poultry shed while cleaning and disinfection. Floors, interior walls and roof are scrubbed and precious litter was disinfected Karsoline @0.3%. Litter management:

 

Thali Poultry Firm, Thali, Kathmandu

Rice husk was used as litter by maintaining 5cm thick on floor. The litter is stirred twice in a week to prevent watery. Wet litter is removed and dry is replaced. Before placing the litter in poultry house, dust lime is used as disinfectant. Brooding and rearing: Chicks should be kept warm and fed on a well balanced diet the care and management of chicks during early part of life continuous brooding successful brooding results in production of healthy chicks in terms of quality and quantity.   After receiving receiving of chicks chicks they were put in well heated brooder brooder which which has run 24 0 0 hr before the arrival of chicks with proper temperature of 90 of 90 F  with -95 F  F with

adequate dry litter. The temperature was maintained as below;  Age

Temperature (O  F)

st

95

nd

90

3 week

rd

85

4th week

80

1  week 2  week

th

75

th

70

5  week 6  week Lighting management:

Brooder house is provided with 24 hours light throughout the growing period with 22 units of 60 watt bulb for all the facilities according to the floor space. Floor space: Each group has 25 sq. feet floor space for 25 birds. Thus total space for 21,000 birds is 21,000 sq. feet.

Feeding: Broiler was fed with two type of ration i.e. Giriraj starter (B1) and finisher (B2). The former ration was fed up to 5 week of age and later till marketing. The starter

 

Thali Poultry Firm, Thali, Kathmandu

ration contains 23-24% cp and finisher containing same level of ME i.e. 3200 ME Kcla/kg feed. Vaccination: Giriraj will be vaccinated as follows:  Age

days of vaccination vaccination

One day

marex or F1 vaccine

th

6  day

Ranikhet vaccine

th

IBD Gumbaro)Vac Gumbaro)Vaccine cine

st

IBD Gumbaro Vaccine

th

Rani Ra nikh khet et Va Vacc ccin inee

14 day 21  day 28 da day y Vaccination process:

Mareks vaccine will be given thorugh subcutaneously. Ranikhet vaccine will be through eye and nostril. nostril. Gumbaro (IBD) vaccine was given through orally.

Result 1. Qual Quality ity product product with with average average live weight weight of 2.2 kg to 2.5 kg up to 45 days. days. 2. The mortality rate will be decreased to: Mortality rate= (total death/total chicks)*1oo  = (300/21000)* (300/21000)*100 100  =1.42% 3. Feed intake rate per bird will be: = 5 kg per chick (approx) Work schedule:

Activities performed:

 

Thali Poultry Firm, Thali, Kathmandu 

Cleaning the shed



Disinfection



Management of chicks (feeding, watering)



Brooding of chicks





Vaccination Management of shed



Observation

Cash Cycle- Thali Poultry Firm

We have to pay the the price of pur purchase chased d chicks wi within thin sev seven en days. We keep th thee chicks for about sixty to seventy days and some are reared up-to 150 days. In that period we need to spend on purchase of feeds, medicine and other administrative expe ex pens nses es.. Af Afte terr that that peri period od the the ch chic icke kens ns are are re read ady y to se sell ll.. Th Thee ch chic icke kens ns ar aree weighted and sold to various purchasers. The chickens also start giving eggs. The

 

Thali Poultry Firm, Thali, Kathmandu

eggs are also sold. After sales the cash generation depends upon the volume of  sales per day.

This cycle is based on a lot of chicks. On an average it lasts for about ninety six days for a lot of chicken.

Conclusion: Thali Poultry Firm is growing from strength to strength since its inception in 2068 B.S. It initially started with 5000 chicks and has grown to 21000 chicks at present. The firm is operating in its own facility at Thali which is under the ownership of Mrs. Ganesh Maya Duwal(proprietor). The firm is smoothly operating with the Loan assistant form Nepal Bank Limited, Sankhu Branch and the firm is planning to enhance its business. The demand for chicken meat and eggs are growing day by day and we still are importing chicken from India to fulfill our Demand. Hence there is a gap which is the opportunity from the firm. firm. Therefore demand is not the problem for the firm. The firm has the experience of more than six years and in these six years the Firm has gained knowledge on administration and marketing of Poultry Firm. In conclusion the firm is well equipped with all the facilities to rear 21000/chicks and has prudent management skills to operate the firm, therefore the only problem is of the Finances which the firms is seeking form Nepal Bank Limited in the form of Agriculture Loan. Hence we place this project proposal to acquire additional loan from Nepal Bank Limited for smooth operation of the Poultry Firm

…………………………….. Ganesh Maya Duwal Thali Poultry Firm  Firm