Poultry Business Plan and Feasibility Study - The business plan is written on the establishment of a poultry farm that will specialize in the production of egg for both household and industrial use. The project (firm) will require an initial capital of N1,000,000 that will be used for renting of land, buying of equipment, feeds chicks etc. From the research made, it was discovered that the project is feasible since the market demand for this product have not been fully satisfied, egg are most time ordered from nearby state (Enugu). The firm will be located at and supply or providing egg for Ebonyians. For a start 200 Chicks will be acquired and a crate of egg will be sold for N600 on average.

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The manure of the Chicks will also be sold. Awareness will be created through the use of advertisement. From our projection the initial profit will be N170, 000 increasingly and in the fifth year when the company has been establish the profit will move to N529, 306 the average net profit is N341, 318.2 while the pay back period is 3 years and the return on capital employed is 34%, with all this we can proudly sat that this project is feasible and viable. The management team is made up of qualified persons who had working experience and have attended tertiary institution. This project will provide employment food for the country.

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            The proposal on the establishment of a poultry farm is based on the survey made by Okorie Ifeoma between October 2012 and Feb. 2013. The business will be a one man business wholly owned by Okorie Ifeoma.
            From the research that was carried out, it was discovered that the demand for egg is not fully satisfied though they are already existing poultry farms operating in the state but eggs are supplied by organizations located outside the state (Enugu), it is as a result of this vacuum on supply gap discovered from the research that I decided that will be co venture into this business. The legal requirement for the establishment of this venture such as local government revenue (tax) per month and the vigilante payment per month have been inquired and will be carefully complied with.
            The venture will help in providence employment, meeting the demand for egg and making the price affordable.

Business Description
            The venture (firm) to be establish is a poultry farm that will concentrate in the production of eggs because of the fund required the venture will start as a small scale business having the population of Ebonyi state as the target market. The firm is an entirely new firm to be started from the scratch. The firm will be located at making use of a rented building and the necessary equipment needed for the operation. (incubator, feeders etc.).

Business Environment Analysis
            A visit was made to the ministry of trade and industry, chamber of commerce to ensure that all legal clearance is made. Because of the high interest rate on loan from commercial bank we will turn to Microfinance bank for our funds. We believe the business will excel since people of all age consume egg and eggs are used in producing varieties of product. Quality Chickens will be acquired though the number may be limited due to the high price. The following are also considered access to water and electricity supply.
            As a new firm having others in the same line of business we know it will not be easy to break into the market but we have devised strategies to overpower our competitors.

Market Analysis
            There are few people in the state already carrying out this business though on a very small scale. The demand for egg has not being fully satisfied that is why we have scarcity of it in some area. Some of the eggs consume in Ebonyi state come from Enugu and is sold between N650 and N800. There is high demand for that for both domestic and industrial uses.

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Marketing Plans
            As was mentioned earlier the residents of Ebonyi state being our target market, awareness will be made by means of advertisement. The advert will be made on television, radio, newspapers etc. the price we intend to sale our product will be lower than the existing price, we are going to make use of distributor scattered in different part of the state. We will make sure that none of our customers are disappointed, demand will be met on time, there will be discount for bulk purchase.

Operation Plan
            The firm will be a commercial poultry farm therefore it will require a full time labour and geared toward producing on a scale for the sale of egg.
            Birds usually starts to lay at around five month (20-21 weeks) of age and continue to lay for 12 month (52 weeks) on average, laying fewer egg as they new the moulting period.
            The typical production cycle lasts about 17 months (72 weeks) and involves three distinct phases as follows.
·        Phase 1: Small Chick or Broilers: This phase last from 0-2 months during which small Chicks are kept in facility (broiler’s house) separate from laying birds.
·        Phase 2: Growers: This phase last about 3 months from the ninth to the twentieth week of age. Growers may be either housed separately from small Chicks or continued to be reared in broiler cum-grower houses. Appropriate care will be provided to the growers particularly between their seventeenth and twentieth week of age as their reproductive organs develop during this period.
·        Phase 3: Layers: growers are transferred from the grower’s house to the layer house when they are 18 weeks old to prepare for the laying cycle. Birds typically lay for a twelve month period starting when they are about 21 weeks old and lasting until they are about 72 weeks old.
·        Phase 4: Collection of egg: Eggs will be collected frequently to prevent hen from brooding it or trying to eat them and also to prevent the eggs from becoming damaged or dirty.
Management and Organization
            Though the business will be owned by one person, the will need other hand to push it to greatness to this end the firm will have the following in its management team;
Gabriel Okechi-General Manager: He holds a degree in the department of business administration from the University of Nigeria Nsukka and has been working in Adamawa poultry in the outskirt of Lagos.
Ihedimegwu James I-production Manager: He holds a HND from the federal polytechnic Uwana in the department of Agric/Economic. He also has a working experience having worked in the ministry of Agriculture Ebonyi state.
Emmanuel Odikka-Marketing Manager: The marketing manager has worked for over ten year in Guinea Company as their marketing officer. He has a degree in the department of marketing and masters in finance both from the Nnamdi Azikiwe University Awka.
Financial Plan
            The initial cost of starting this small scale poultry farm is about N1,000,000 that will be used for acquiring 500 layers, rent a plot of land building structure that house the Chicken buying equipment daily feeding and medical treatment.
            The expenses for rearing Chicks include;
Chicks                                                                        600,000
Feeds                                                                          100,000
Housing                                                                     350,000
Equipments                                                               200,000
Labour                                                                       180,000
Vaccination                                                               70,000
Mortality                                                                   40,000
Project Cost                                                               1,000,000
Weekly Costs and Sales
-      Egg sold-20 crate per pair
-      Feed used
-      Rearing cost minus a and b.
Income for the year
Sale of eggs                                                                           2,310,000
Sale of culled birds                                                              -
Sales of manure                                                                    190,000
Total income                                                                         2,500,000
Production budget for the year
Unit to be sold
Eggs                                                                                      4200 crate
Plan closing stock                                                                600 crates
Less opening stock                                                              4800                          
Unit to be produced                                                             4800
Manure production budgets for the year
Unit to be sold                                                                      840 bags
Planned closing stock                                                          120 bags
Less planned operating stock                                                -
Planned production                                                             960
Operating expenses for the year
Salaries                                                                                  800,000
Wages                                                                                                270,000
Light power & heating                                                         80,000
Transportation                                                                      240,000
Advertising                                                                           60,000
Insurance                                                                               150,000
Security                                                                                 60,000
Rent                                                                                        120,000
Feeds                                                                                      230,000
Factory exp.                                                                          40,000
Selling & distribution exp.                                                 90,000
Electricity                                                                              130,000
Projected income statement
Sales                                                                                       2,500,000
Purchases (ducks)                            60,000
                        (Feeds)                                   230,000
Wages                                                            270,000           (560,000)
Gross profit                                                                           1940,000
Salaries                                                          800,000
Light power & heating                     80,000
Transportation                                              240,000
Advertising                                       60,000
Insurance                                                       150,000
Securities                                                       60,000
Rent                                                    120,000
Selling & distribution exp.             90,000
Factory exp.                                      40,000
Electricity                                                      130,000                      (1770, 000)
Net profits                                                                                         170,000
Project balance sheet as at Dec 20-1st year
Building                                                                                             350,000
Equipments                                                                                       200,000
Current Assets
Stock                                                  60,000
Debtor                                                            240,000
Bank                                                   270,000
Cash                                               100,000                      670,000
Capital                                             1,000,000
Net profit                                           170,000
                                                      (50,000)                     120,000
Creditors                                        334,000
Accrued exp.                                     16,600                        50,000
Project statement for 5 years
Costs of sales
Gross profit
Operating exp
Net profit

Sales will increase by 10% yearly cost of sales will increase by 15% operating expenses will rise by 5%.
Net average profit = 5 years profit
                                                No of year
                                       = 170000 + 247500 + 332975 + 426810 + 529306
                                        = 1,706,591
                                         = N 341,318.2
Profitability Analysis & Evaluation of Project
Payable period = Total investment
                                  Net Average income
                               = 1,000,000
                                   341,318                                   = 2.9
                                    = 3 years
Annual rate of return = Av profit
                                                     Total investment
                                                   = 341,318
                                                    = 34%
            From the survey carries out and the projection made it is discovered that the project will be a worthwhile one. The project has the ability to pay back its owner capital within just three year and has a capital employ of 34% making it very viable.
            We have the confidence that our idea (dream) and further research will lead this firm to greatness. When the firm is well established, it will provide employment for both the owners and other, it will also provide egg for both household and fast food or industrial use.
            Extensive research has being made still other suggestion will still be welcomed from well wishers.


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