Pre-Feasibility Study
BROILER FARM (7500 Birds)
Small and Medium Enterprise Development Authority Government of Pakistan www.smeda.org.pk HEAD OFFICE th
6 Floor , LDA LDA Plaza, Plaza , Egerton Road, Lahore Tel: (042) 111-111-456, Fax: (042) 6304926-27
[email protected] REGIONAL OFFICE PUNJAB
REGIONAL OFFICE SINDH
8 Floor , LDA Plaza, Egerton Road, Lahore
5 Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572
[email protected]
th
Tel: (042) 111-111-456, Fax:
[email protected]
TH
REGIONAL OFFICE NWFP
REGIONAL OFFICE BALOCHISTAN
Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908
[email protected]
Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922
[email protected]
January, 2006
Pre-Feasibility Study
Broiler Farm (7500 Birds)
DISCLAIMER The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information. SMEDA does not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. Therefore, the content of this memorandum should not be relied upon for making any decision, investment or otherwise. The prospective user of this memorandum is encouraged to carry out his/her own due diligence and gather any information he/she considers necessary for making an informed decision. The content of the information memorandum does not bind SMEDA in any legal or other form.
DOCUMENT CONTROL Document No.
PREF 18
Revision
2
Prepared by
SMEDA-Punjab
Approved by
GM Punjab
Issue Date
January, 2006
Issued by
Library Officer
1 PREF-18/January, PREF-18/January, 2006/ Rev 2
Pre-Feasibility Study
1 1.1
Broiler Farm (7500 Birds)
INTRODUCTION Project Brief
The broiler farm is a project of livestock sector, in which, the day old chicks (DOCs) are raised on high protein feed for a period of six weeks. This business can be started both in rural and semi-urban areas in sheds. The Poultry sheds can be acquired on rental basis. These sheds have all the required facilities for the broiler farm. The rent cost varies between Rs 1 to Rs 2 per square feet depending upon the location and facilities at the farm. The broiler birds are sold to traders and the whole sellers markets in the urban areas. Some times birds can also be sold directly to the shopkeepers in the urban markets. Broiler farming is a profitable venture depending on the demand of the meat in the market. Annually, six flocks of birds will be raised on the same premises of a farm. 1.2 1.2
Oppo Op port rtun uniity Rat Ratiional onalee
Broiler meat is the cheapest source of animal protein available in the country. The time required for raising broiler birds is lesser than that for big animals. The consumption of white meat is increasing due to growing health consciousness in the masses. According to the Agriculture Statistics of Pakistan the per capita consumption of poultry meat is increasing at a rate of 4% per annum. The existing daily availability of protein quantity per capita in Pakistan deriving from animal source including beef, mutton, poultry and fish combined amounts to 11 grams. This is far less than the recommended daily dietary protein allowance from animal source of 26 grams according to the World Health Organization standards. 1
Figure 1-1: Daily Protein Consumption
Recommended Daily Dietary Protein Allowance Vs Existing Availability 1991-2000 30 25
s 20 m a r 15 G 10 5 0 1 991
199 2
1 9 93
A va va il il ab abl e p er er Da Da y
1
1 9 94
199 5
19 96
1 998
19 99
R ec ec om om me me nd nd Da Da il il y D ie ie ta ta ry ry Al All ow ow an an ce ce
Source: SMEDA survey 2001
2 PREF-18/January, PREF-18/January, 2006/ Rev 2
19 97
2 000
Pre-Feasibility Study
1.3
Broiler Farm (7500 Birds)
Tota otal Pr Proje oject Cost
A broiler farm with a population of 7,500 birds established in a rented building needs a capital investment of about Rs 69,870 for purchasing farm machinery and equipment. In addition to this, a sum of Rs 596,882 is required as working capital, which will be used for purchasing day old chicks and raw material (feed & vaccines) etc. 1.4
Prop roposed Cap Capaci acity
In this pre-feasibility study, all the calculations have been based on a flock size of 7,500 birds, with raising six flocks per year. There will be a lag time of two weeks for cleaning and fumigation of the farm.
2
CURR CURREN ENT T INDU INDUST STR RY STR STRUC UCTU TURE RE
The generation line of broiler comes from pure line, which is imported. This produces grand parents for parent stocks and parent stock end up in producing the final product. The farmers get day old broiler from hatcheries. These hatcheries maintain their breeder farms, or in some cases, purchase their hatching eggs from breeder farms. These breeder farms depend on producers of parent stock. Poultry feed mills are the major player in the poultry industry, which produce a specific formula feed mix. Poultry feed consists of rich protein elements like grains, gluten, blood meal, fishmeal and soyabean meal. The major component of cost of production of chicken meat accounts for feed cost. The poultry meat production has showed a growing trend over the past few years after a dip in 1997 due to the ban imposed on wedding dinners. The meat production trend of chicken meat, beef and mutton from the year 1995-2003 is presented below. 2
Figure 2-1: Meat Production Trends2
1200 1000
) s n o T , 0 0 0 (
800 800 600 600 400 400 200 200 0 1995
1996
1997
1998 Beef
2
1999 Mutton Mutton
Source: Agricultural Statistics of Pakistan 2003-2004 3
PREF-18/January, PREF-18/January, 2006/ Rev 2
2000
2001 Poultry Meat Meat
2002
2003
Pre-Feasibility Study
Broiler Farm (7500 Birds)
Figure 2-2: Broilers' Population (1995-2003)
40 0 35 0 s 30 0 d r i B 25 0 n o 20 0 i l l i M15 0
10 0 50 0 1 99 5
19 96
19 97
1 99 8
1 99 9
20 00
2 00 1
2 00 2
20 03
Poultry (Million Birds)
3
MARKETING
The marketing of chickens follows the traditional channels of distribution. Generally, broilers are distributed in the market through middlemen (Arti) and wholesalers. wholesalers. The role of Arti is to identify identify a farm and negotiate negotiate the price . In some cases, the middleman provides Day Old Chicks and other farm inputs (feed, etc.) to the broiler farmers and then agrees to buy back the mature birds from them. Birds are transported to the urban market and are sold to retailers or market-street poultry shops. Birds are sold on live-weight basis. The time spent in getting broilers from the farm to the retail shop is brief. Although collection and handling of birds has improved with the use of loader vehicles, but it is an established fact that greater the distance between the poultry producer and consumer, more complicated is the marketing system including their collection, handling and transportation to the consumer or processing plants. The processing plant produces dressed chicken (slaughtered and cleaned). However, a very small amount of dressed chicken is available in the local retail market. The integrated processing units distribute frozen and dressed chicken packed in whole or cut-ups to the consumer through retail shops under their brand names. The trick in marketing is quick availability of market information of chicken supply and demand, which will determine the selling price.
4
FARM MANAGEMEN MENT
Farm input required for a broiler farm includes farm equipment (drinkers, feed trays, brooders, and feeders), electronic fixtures and other consumer items (feed, vaccines & medicines, rice-husk or saw-dust, water, electricity, etc.).
4 PREF-18/January, PREF-18/January, 2006/ Rev 2
Pre-Feasibility Study
4.1
Broiler Farm (7500 Birds)
Day Old Chicks
The chicks should be of uniform size, active, alert and bright eyed. The shank or leg covering (skin) of healthy chicks appears bright and shiny. 4.2
Brooding
Proper brooding temperature is required to keep the chicks in comfort. Coal or sawdust is burnt for supplying heat at the stage of brooding in the poultry farm. In the first week, 95ºF is quite comfortable. For the first one week, it is also essential to observe four to five times daily the condition (temperature) of the chicks. They should neither huddle nor move away from the brooding hover, but should be moving around evenly. As chicks grow, the temperature may be reduced at a rate of 5ºF per week until approximately 70ºF is reached in the sixth week. 4.3
Feeding
Broilers are usually fed with the following two types of ration:
Broiler starter: It is fed to the broiler birds up to five weeks of age. Broiler finisher: It is fed to the broiler of more than five weeks of age and continued till the age of marketing.
Feeding three or four times each day will stimulate feed intake and prevents wastage. Percentage requirement of different ingredients in starter and finisher diet is given in Table 4-1: Table 4-1: Broiler Starter & Finisher Diet Ingredients
Maize Rice Polish Groundnut cake Sunflow er cake Fish meal Meat meal Blood meal Animal fat Bone meal Limestone Salt Mineral and Vitamin mixture Total
Starter diet (% required) 44.25 10.00 15.00 15.00 6.00 6.00 0.25 2.00 0.75 0.5 0.25 0.1
Finisher diet (% required) 44.10 20.00 11.00 11.00 5.30 5.50 0.2 1.25 0.6 0.7 0.25 0.1
100.00
100.00
This starter and finisher feed can be obtained in prepared form, from the feed mills. 5 PREF-18/January, PREF-18/January, 2006/ Rev 2
Pre-Feasibility Study
4.4
Broiler Farm (7500 Birds)
Housing
The chicks should be kept in a clean, dry and well-ventilated room. Broiler house should have proper ventilation as this provides the birds fresh air and carries off moisture. The entire building including litter and all equipment should be fumigated. 4.5
F e e d er s
It is essential to provide adequate feeder space. Ideally, one pan type feeder is sufficient for 50 birds. Therefore, for 7500, birds 150 feeders would be more than enough. 4.6
Lighting
Most broiler growers provide 24 hours light during brooding and early growing period. Recent research conducted in windowless buildings, using intermittent lighting of 1-2 hours period, has indicated significantly improved feed efficiency. Initially, for first fifteen days, light intensity should be 40-60 watts per 200 sq. ft of space and this can be replaced by 15 watts bulb in the beginning of third week. The feasibility has taken monthly electricity charges of Rs 2500. 4.7
Drinkers
Adequate drinking space should also be provided to the birds. The drinker should contain fresh, clean and cold water. It is necessary to provide extra water during summer. One drinker is sufficient for 50 birds. 4.8
Litter
Litter is spread on the floor to prevent the direct contact with the floor. Straw, ricehusk and sawdust are generally used for making the litter. It should be dry and free of moulds. Caked or moldy material should be removed and refilled with fresh materials. Extensively wet and dusty litter should also not be used. Using new litter for each flock is good for raising disease-free broiler. 4.9
Vaccination
Vaccination can be provided to chicks through injections, can also be mixed in the water and also through eye drops. Average vaccination price per bird mostly varies between Rs 2-5. The feasibility has taken cost of vaccination at Rs 4 per bird. 4.10 Fumiga Fumigatio tion n and Sprayi Spraying ng
It is essential to check all equipment and walls of the broiler house carefully that they are clean, and washed with disinfectant solution, and dried. The rooms should be white washed and sprayed before the arrival of birds. Disinfectant solution can be prepared with Phenol, Potassium Permanganate, Carbolic Acid and Formaline. A solution of Sodium Hydroxide/Caustic Soda with warm water can also be used to clean the house. 6 PREF-18/January, PREF-18/January, 2006/ Rev 2
Pre-Feasibility Study
Broiler Farm (7500 Birds)
To sanitize the broiler house from germs and insects, it is fumigated with Formaldehyde Gas, which is produced by putting Formaline on Potassium Permanganate. The rooms should be vacant and sealed for 30 minutes after the fumigation so that the gas infiltrates in every corner of the room. In the pre-feasibility report, the cost of fumigation has been taken as Rs 2,000 per flock.
5
MANP MANPOW OWE ER RE REQUIR QUIRE EMEN MENTS
Semi skilled workers are needed to look after the feeding, vaccination and cleaning operations at the farm. A single person can handle 3,000 birds easily. Two people will be hired to mange the operations of a broiler farm of 7,500 birds. Each attendant is given a monthly salary of Rs 4,000. In addition, a supervisor will also be hired at a monthly salary of Rs. 5,000.
6
FARM EQUIPMENT
Various types of farm equipment are needed for feeding, drinking and handling the birds. List of farm equipment, which will be needed, is as under: Table 6-1 Farm Equipment Farm Equipment
Rs/unit.
Rs.
15 3 38 112
600 1,200 90 180
9,000 3,600 3,420 20,160
Small Feeder
38
95
3,610
Large Feeder
112
140
15,680
8
1,800
14,400
Brooder Drum Heater Small Drinkers Large Drinkers
Shifting Box
3
Total Machine Cost
3
No.
326
Used to shift Day Old Chicks
7 PREF-18/January, PREF-18/January, 2006/ Rev 2
69,870
Pre-Feasibility Study
7
Broiler Farm (7500 Birds)
LAND & BUILDING
Table 7-1 Space Requirement Space Requirement
Required Area (Sq.ft)
Management building Shed Space (1 Sq.ft/bird)
100 7,500
Store Room
180
Rooms for Guard and Workers
144
Total Project Space Requirement Rental Cost/sq.ft (Rs)
1.50
Total Building Rental Cost (Rs) per month 7.1
7,924 11,886
Recom Recomme mend nded ed Mode Mode for for Acqu Acquir irin ing g Lan Land d
It is recommended that the proposed project should be started in a rented shed. These sheds are located along roadsides around cities and rural areas. This option will help us to save on the capital cost required for constructing sheds. 4
Rental cost of Rs 1.5/sq.ft per month prevails in the market. Advance rent for one year is paid. 7.2 7.2
Suiitabl Su tablee Loca Locattions ions
Suburban and rural areas around the major cities of the country are the suitable areas for setting up a poultry farm. Setting up a farm at an isolated place will minimize the risk of disease. Proximity of the farm to the city enables the farmer to have a quick communication with the market for the purchase of Day Old Chicks, farm inputs (feed, etc.), and selling of mature birds. 7.3 7.3
Infr Infras astr truc uctu ture re Req Requir uirem emen entt
Poultry's farming needs to be handled tactically, right from the selection of the site to the final stage when the birds are sold. The farm should be located at a place where transportation of birds and feed can be handled easily. The entrepreneur should make sure that the following things are available at the farm site before setting up the farm:
Electricity connection Drinking quality water
4
Includes the cost of electronic fixtures, nylon sheets and o ther farm infrastructure apart from farm equipment, since this usually built-in in any existing poultry farm. 8
PREF-18/January, PREF-18/January, 2006/ Rev 2
Pre-Feasibility Study
8
Broiler Farm (7500 Birds)
PROJECT COST
Table 8-1 Project Economics Account Head Machinery & Equipment Total Capital Cost Raw material inventory Upfront Building Rent
Total Cost (Rs) 69,870 69,870 254,250 142,362
Total Working Capital Total Project Cost (Rs)
596,882 728,752
Table 8-2 Project Return Project 43% 3.26 1,238,855
IRR Payback Period (years) NPV (Rs) Table 8-3 Financing Plan Financing Equit y Debt
9
Rs.
50% 50%
364,376 364,376
KEY KE Y SUC SUCCESS FACTO TORS RS Farm Supervision
Proper technical supervision of the enterprise is the key to the success of a broiler farm. Farm employees should be aware of the feeding and drinking habits of birds. The farm supervisor should be vigilant and should ensure timely feeding and vaccination, so that the birds stay healthy and disease-free.
Market Information
The entrepreneur should be well aware of the supply and demand of chicken in the city. This will help the entrepreneur to negotiate well the sale price of birds. The price of chicken meat fluctuates tremendously during a year.
Mortality Losses
Mortality can only be controlled if the farm conditions are hygienic. Mortality losses should be kept below 8% by timely vaccination & medication.
9 PREF-18/January, PREF-18/January, 2006/ Rev 2
Pre-Feasibility Study
Broiler Farm (7500 Birds)
10 THREATS The poultry industry has some inherent issues, which can not be controlled by an individual entrepreneur. Following are some threats faced by this industry:
Disease Epidemic
Diseases like New Castle are extremely dangerous. They can eradicate the entire bird population, so the birds need to be protected against such type of diseases, by proper vaccination and medication.
Government Regulations
When the government imposed a ban on marriage dinners, the industry suffered heavy losses at the time of inception of this law. Ban on marriage dinners has reduced chicken consumption by 40%.
10 PREF-18/January, PREF-18/January, 2006/ Rev 2
Pre-Feasibility Study
Broiler Farm (7500 Birds)
11 FINANC FINANCIAL IAL ANAL ANALYSI YSIS S
11.1 Project Cost Cost
Capital Investment Machinery & equipment Furniture & fixtures Office equipment Pre-operating costs Total Capital Costs
Rs. in actuals 69,870 10,000 29,000 23,000 131,870
Working Capital Raw material inventory Upfront building rent Cash Total Working Capital
Rs. in actuals 254,250 142,632 200,000 596,882
Total Investment
728,752
Initial Financing Debt
Rs. in actuals 364,376
Equity
364,376
11 PREF-18/January, PREF-18/January, 2006/ Rev 2
Pre-Feasibility Study
Broiler Farm (7500 Birds)
11.2 Projected Projected Income Income Statement Statement
Income Statement Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Rs. in actuals Year 10
3,960,000 3,490,500 469,500
4,237,200 3,673,950 563,250
4,533,804 3,867,465 666,339
4,851,170 4,071,638 779,533
5,190,752 4,287,099 903,654
5,554,105 4,514,521 1,039,584
5,942,892 4,754,620 1,188,272
6,358,895 5,008,163 1,350,732
6,804,017 5,275,963 1,528,054
7,280,298 5,558,893 1,721,406
General administration & selling expenses Utilities expense Professional fees (legal, audit, etc.) Depreciation expense Amortization expense Mortality
9,501 1,980 10,887 4,600 139,620
10,451 2,119 10,887 4,600 146,958
11,497 2,267 10,887 4,600 154,699
12,646 2,426 10,887 4,600 162,866
13,911 2,595 10,887 4,600 171,484
15,302 2,777 10,887 180,581
16,832 2,971 10,887 190,185
18,515 3,179 10,887 200,327
20,367 3,402 10,887 211,039
22,404 3,640 10,887 222,356
Subtotal Operating Income Earnings Before Interest & Taxes
309,220 160,280 160,280
329,058 234,192 234,192
350,315 316,024 316,024
373,100 406,433 406,433
397,526 506,127 506,127
419,120 620,464 620,464
447,214 741,057 741,057
477,355 873,378 873,378
509,696 1,018,358 1,018,358
544,408 1,176,997 1,176,997
Interest expense Earnings Before Tax
36,160 124,120
37,865 196,327
29,160 286,863
19,256 387,178
7,985 498,142
408 620,056
741,057
873,378
1,018,358
1,176,997
Tax NET PROFIT/(LOSS) AFTER TAX
124,120
196,327
286,863
387,178
498,142
620,056
741,057
873,378
1,018,358
1,176,997
Balance brought forward Total profit available for appropriation Balance carried forward
124,120 124,120
124,120 320,447 320,447
320,447 607,311 607,311
607,311 994,488 994,488
994,488 1,492,631 1,492,631
1,492,631 2,112,687 2,112,687
2,112,687 2,853,744 2,853,744
2,853,744 3,727,122 3,727,122
3,727,122 4,745,480 4,745,480
4,745,480 5,922,477 5,922,477
Revenue Cost of goods sold Gross Profit
12 PREF-18/January, PREF-18/January, 2006/ Rev 2
Pre-Feasibility Study
Broiler Farm (7500 Birds)
11.3 Projected Projected Cash-flow Cash-flow Statement Statement Cash Flow Statement Year 0
Year 2
Year 3
Year 4
Yea r 5
Year 6
Year 7
Year 8
(254,250) (11,886) (266,136)
124,120 10,887 4,600 (325,479) (26,061) (951) 292,300 79,416
196,327 10,887 4,600 (11,392) (28,732) (1,027) 15,825 186,488
286,863 10,887 4,600 (23,581) (31,677) (1,109) 16,740 262,723
387,178 10,887 4,600 (25,232) (34,924) (1,198) 17,713 359,025
498,142 10,887 4,600 (26,998) (38,503) (1,294) 18,750 465,584
620,056 10,887 (28,888) (42,450) (1,397) 19,853 578,062
741,057 10,887 (30,910) (46,801) (1,509) 21,029 693,754
873,378 10,887 (33,074) (51,598) (1,630) 22,283 820,246
Financing activities Change in long term debt Issuance of shares Cash provided by / (used for) financing
364,376 364,376 728,752
(45,326) (45,326)
(63,128) (63,128)
(71,832) (71,832)
(81,737) (81,737)
(93,008) (93,008)
(9,346) (9,346)
-
-
-
-
Investing activities Capital expenditure Cash (used for) / provided by investing
(131,870) (131,870 )
-
-
-
-
-
-
-
-
-
-
NET CASH
330,746
34,090
123,361
190,891
277,288
372,576
568,716
693,754
820,246
958,829
1,755,261
Cash balance brought forward Cash available for appropriation Cash carried forward
330,746 330,746
330,746 364,836 364,836
364,836 488,197 488,197
488,197 679,088 679,088
679,088 956,375 956,375
956,375 1,328,952 1,328,952
1,328,952 1,897,668 1,897,668
1,897,668 2,591,421 2,591,421
2,591,421 3,411,667 3,411,667
3,411,667 4,370,496 4,370,496
4,370,496 6,125,757 6,125,757
Operating activities Net profit Add: depreciation expense amortization expense Accounts receivable Raw material inventory Pre-paid building rent Accounts payable Cash provided by operations
13 PREF-18/January, PREF-18/January, 2006/ Rev 2
Year 9
Rs. in actuals Year 10
Year 1
1,018,358 10,887 (35,389) (56,887) (1,760) 23,619 958,829
1,176,997 10,887 (37,866) 611,883 23,760 (30,401) 1,755,261
Pre-Feasibility Study
Broiler Farm (7500 Birds)
11.4 11.4 Projec Projected ted Balan Balance ce Sheet Sheet Balance Sheet Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Rs. in actuals Year 10
Assets Current assets Cash & Bank Accounts rece ivable Raw material inventory Pr e-paid bui lding r ent T otal Current Assets
330,746 254,250 11,886 596,882
364,836 325,479 280,311 12,837 983,463
488,197 336,871 309,042 13,864 1,147,974
679,088 360,452 340,719 14,973 1,395,232
956,375 385,684 375,643 16,171 1,733,873
1,328,952 412,682 414,146 17,464 2,173,244
1,897,668 441,569 456,596 18,862 2,814,695
2,591,421 472,479 503,398 20,371 3,587,669
3,411,667 505,553 554,996 22,000 4,494,216
4,370,496 540,942 611,883 23,760 5,547,081
6,125,757 578,807 6,704,564
Fixed assets Ma chinery & equipment Furniture & f ixtures Offic e equip ment T otal Fixed Assets
69,870 10,000 29,000 108,870
62,883 9,000 26,100 97,983
55,896 8,000 23,200 87,096
48,909 7,000 20,300 76,209
41,922 6,000 17,400 65,322
34,935 5,000 14,500 54,435
27,948 4,000 11,600 43,548
20,961 3,000 8,700 32,661
13,974 2,000 5,800 21,774
6,987 1,000 2,900 10,887
Intangible assets Pr e-operation costs Total Intangible Assets TOTAL ASSETS
23,000 23,000 728,752
18,400 18,400 1,099,846
13,800 13,800 1,248,870
9,200 9,200 1,480,641
4,600 4,600 1,803,795
2,227,679
2,858,243
3,620,330
4,515,990
5,557,968
6,704,564
292,300 292,300
308,124 308,124
324,864 324,864
342,577 342,577
361,327 361,327
381,180 381,180
402,210 402,210
424,492 424,492
448,112 448,112
417,711 417,711
Liabilities & Shareholders' Equity Current liabilities Accounts pa yable Total Current Liabilit ie s
-
Other liabilities Long term de bt Total Long Term Liabilities
364,376 364,376
319,050 319,050
255,923 255,923
184,091 184,091
102,353 102,353
9,346 9,346
Shareholders' equity Paid-up capital Retained ear nings T otal Equity TOTAL CAPITAL AND LIABILITI
364,376 364,376 728,752
364,376 124,120 488,496 1,099,846
364,376 320,447 684,823 1,248,870
364,376 607,311 971,687 1,480,641
364,376 994,488 1,358,864 1,803,795
364,376 1,492,631 1,857,007 2,227,679
14 PREF-18/January, PREF-18/January, 2006/ Rev 2
-
364,376 2,112,687 2,477,063 2,858,243
-
364,376 2,853,744 3,218,120 3,620,330
-
364,376 3,727,122 4,091,498 4,515,990
-
364,376 4,745,480 5,109,856 5,557,968
-
-
364,376 5,922,477 6,286,853 6,704,564
Pre-Feasibility Study
Broiler Farm (7500 Birds)
12 KE KEY Y ASSU ASSUMPT MPTIO IONS NS Table 12-1:Production Assumptions
Maximum Capacit y Ut ilization Number o f Birds per Flock Number o f Flock s per Year Mortalit y Rate Annual Pro duction (birds) Time required per Flock (days) Lag time between the Flock (weeks) Average weight per bird (kg)
100% 7,500 6 8% 45,000 42 2 1.6
Table 12-2: Economy Related Assumptions
Electricit y growth rate Wage growth rate
10% 10%
Table 12-3: Revenue Assumptions
Sales price( in Rs/kg) Sales price growth rate
55 7%
Table 12-4: Expense Assumptions
DOC (Day Old Chicks) in Rs COGS growth rate Average Feed Requirement/bird/day (kg) Cost of feed ( in Rs/kg) Vaccination Cost per bird Litter Cost per flock
21 5% 0.08 13 5 6,000
Table 12-5: Cashflow Assumptions
Raw Material I nventory (Month’s production) Accounts Receivable Cycle(Days) Accounts Pa yable Cycle(Days)
1 38 39
Table 12-6: Financial Assumptions
Project life (Years) Debt - Equit y Interest rate on long-term debt Interest rate on short term debt Debt t enure (Years) Debt payments per year
10 50%-50% 13% 13% 5 1 15
PREF-18/January, PREF-18/January, 2006/ Rev 2
