A BUSINESS PLAN ANIMAL / LIVESTOCK PRODUCTION (e.g. SHEEP, PIGS) | FEASIBILITY STUDY

Department:  ANIMAL SCIENCE
NAME OF BUSINESS VENTURE: LOCAL SHEEP PRODUCTION

EXECUTIVE SUMMARY:
sheep was first domesticated in the new stone age. Evidence for the domestication of sheep dates to 9000BC in Iraq. DNA analysis has shown that domestic sheep are descended from two ancestor species, one of which is the mouffion. The moufflons comprise ovis musimon and ovis oriental is. Although the second ancestor has not been identified, both the urinal and argali have been ruled out.
The urinal (O. vignei) is found from northeastern Iran to northwestern India. It has a higher number of chromosomes (58) than domestic sleep (54) which makes it an unlikely ancestor of the latter, but it interbreeds with the moufflon. The argali sleep (O. aminan) of inner Asia Tibet Himalayas, Italy mountains, Tien-Shan and pamir has 56 chromosomes and the Siberian snow sheep (ovisnivi cola) has 52 chromosomes. The soay ram demonstrates the wide variance in sleep traits that belies the prototypical appearance of the animal. Historical records slow that sheep provided primitive pastoral people with meat, wool, tallow, skin and milk.

CURRENT STATUS
The population of livestock in Nigeria as at 2013 was estimated at 195, 950,000 sheep, 40,834,000 goats, 19,590,000 poultry, 16,286,000 cattle and pigs 1,350,000 (Federal office of statistics, 2013). Inspite of these great numbers, the death of animal protein in Nigeria had continued to plague us. The problem is simply due to gross inefficiently of sub-sector. Adu (2013) reported a decrease in annual growth rate of livestock population in Nigeria, from 7.6% in 1990 to 1.9% in 2002. According to Akinsanmi (2012) if the situation is viewed against the scenario of rapidly increasing human population (2.1% per annum) and diminishing of 1.6% per annum in the livestock production index holds a grim prospect for animal protein supply in Nigeria.

DEVELOPMENT PLAN
Sheep brings ovulation and oestrous. It also helps in the development of the mammary gland. It also influences nitrogen retention and protein synthesis.

BUSINESS DESCRIPTION
Some breeds e.g. the wool type produce two products – wool and lamb available for market at two different period of the year. Housing is important requirement for intensive sheep production. Housing is essential for overnight shelter and provides security against predators for the sheep. Also, it provides protection against rain and cold. The floor can be of cement or rammed earth, it should be easy to clean and should be covered with good bedding material such as straw or wood shaving which can be changed from time to time. Water supply can be from a well, tap, and borehole or river. It should be clean and insufficient quantity. Feed and water troughs should be provided in every pen.

The population of livestock in Nigeria as at 1994 was estimated at 194,980,000 poultry, 50,973 goats, 20,490,000 sheep, 17,397,000 cattle and 2,340,000 pigs.

Sheep essentially contain minerals and vitamins for body functions and health of animals. Protein is essential for the repair of worn out tissues and the building of new ones

BUSINESS ENVIRONMENT ANALYSIS
Source
Amount
(N)
Interest (%)
Year One
Year two
Year three
NACRDB loan
20,000.00
-
500,000
410,000
160,800

Balance
12
60,000
49,200
192,960

Repayment
b/d
560,000
360,800
169,804

Balance
c/d
67,200
200,000
23,160




The 300 layers sheep production would be able to repay its loaned fund within three years of business environment provided the business model is carried out as planned.

The population of livestock in Nigeria as at 1995 was estimated at 175,940,000 poultry, 40,234,000 goats, 18,386,000 cattle and 1,330,000 sheep.

Energy is present in feedstuffs in the form of carbohydrates, fats and oil. An animal must have sufficient energy to maintain its body functions and produce meat and milk. Grains, molasses and brewers dried grains are good source of energy

MARKET ANALYSIS:
We surveyed the sheep production market in Nigeria and found that with an estimated population of over 300 million offices in this country, the market for decent office is very large indeed. Currently prices of executive sheep production in Nigeria range from N80,000 – 150,000 depending on size and quality.

The current status was estimated at N175,940 poultry, sheep 19,120,000 and cattle 18,149,000 pigs 152,284,000.

The most commonly available feedstuffs for livestock in Nigeria are roughages (grasses, legumes, browse plants and crops residues), oil seed cakes (cotton seed cake, groundnut cake and palm kernel cake). Molasses wheat offal rice bran, dust (local bran) and brewers dried grains.

MARKETING PLAN
Marketing plan is based on the following;
Sales Quotas: Each depot will be given a sales quota that must be achieved in order for us to realize the estimated sales N40,325,000,000 annually.
Distribution channels: we sell our product from factory site at (Address Here) and also from our three sales depots located at …….. (Imo, Lagos and Kaduna for example)

The population of livestock in Nigeria as at 1997 was estimated at 30,250,000 sheep, 194,120,000 cattle, 184,210,000 pigs

Sheep droppings are particularly less subjected to wastes because of the way they are dropped and tramped into the soil also. Their energy requirements are lower than those for other livestock enterprises

OPERATION PLAN
Dip vats are best made with concrete A vat measuring 6 x 1.2 x 0.75 litres. It is necessary to put a roof over the vat to prevent rain from diluting the chemical. In small-sized flocks, a 200 litre drum opened at one and can be used. A knapsack sprayer can be also be used. In raw material requirement we are concerned with quality and quantity reliability of source, cost effectiveness and current cost.

The current status was estimated at 234,198,000 sheep, 132,210,000 cattle 192,141,000 poultry.

Improvement in the management practices like intensive rearing of livestock, adoption of agro-pastoral system also establishment of grazing reserves and grain storage centres.

MANAGEMENT AND ORGANIZATION:
Organization charts of sheep production.
Farm manager
Poultry attendant
Security

The need for job specification at this stage of the project is not very necessary since this will be taken care of as the farm grows. The office of the farm manager will be handled by the farmer himself, who holds a bachelors’ of agriculture degree with experience in sheep production.

The population of livestock in Nigeria as at 1998 was estimated at 352,194,000 sheep, 219,138,000 cattle, 192,452,000 goat.

Improving the feeding and health standards of the animals and also improvement of the animal’s environment.

FINANCIAL PLAN: Sheep production cash flow estimated
Year
Cash flow year (N)
Cash flow cumulative (N)
1
59,140.50
59,140.50
2
62,384.50
121,525.50
3
67,384.50
2,461,294.00
4
64,128.50
382,248.00
5
69,384.00
309,678.50

The population of livestock in Nigeria as at 2,000 was estimated at 198,173,000 sheep, 127,542,000 cattle, 130,124,000 poultry and pigs 479,271,000.

Establishment of good and functional livestock insurance polices and mobilization of an inter-disciplinary approach of all stake holders for the overall growth and development of the livestock industry

From the table above, a cash flow estimate the yearly phasing of the sheep production invested capital did not show any negative return.

CONCLUSION:
A major attraction of intensive sheep production is the opportunity it offers for large scale production of rams especially for sale during festivals when they can be sold at very high prices. Rams for fattening can come from the farm flock or may be purchased on the open market at a time when prices are relatively low. For best results rams should be fattened for 3 to 4 months before sale.

The current status was estimated at 300,195,000 sheep, 125,184,000 poultry, 214,198,000 cattle and 172,203,000 pigs.

Government policies should bear livestock farmers in mind during planning and improving the feeding and health standards of the animals
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