Poultry Farm

Pre-Feasibility Study
(Broiler Farm)
Small and Medium Enterprises Development Authority

Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
helpdesk@smeda.org.pk
REGIONAL OFFICE
Punjab
REGIONAL OFFICE
Sindh
REGIONAL OFFICE
Khyber Pakhtunkhwa
REGIONAL OFFICE
Balochistan
3rd Floor, Building No. 3,

Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456
Fax: (042) 36304926-7
helpdesk.punjab@smeda.org.pk
5th Floor, Bahria

Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 35610572
helpdesk-khi@smeda.org.pk
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 111-111-456
Fax: (091) 5286908
helpdesk-pew@smeda.org.pk
Bungalow No. 15-A

Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 2831623, 2831702
Fax: (081) 2831922
helpdesk-qta@smeda.org.pk
Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost
December, 2013
Table of Contents
1. DISCLAIMER .......................................................................................................................................... 2
2. PURPOSE OF THE DOCUMENT ......................................................................................................... 3
3. INTRODUCTION TO SMEDA .............................................................................................................. 3
4. INTRODUCTION TO SCHEME ........................................................................................................... 4
5. EXECUTIVE SUMMARY ...................................................................................................................... 4
6. BRIEF DESCRIPTION OF PROJECT & PRODUCT ........................................................................ 4
7. CRITICAL FACTORS ............................................................................................................................ 5
8. INSTALLED & OPERATIONAL CAPACITIES ................................................................................. 5
9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT ..................................................................... 5
10. POTENTIAL TARGET MARKET ................................................................................................... 5
11. BROILER PRODUCTION PROCESS ............................................................................................. 6
12. PROJECT COST SUMMARY .......................................................................................................... 8
12.1. PROJECT ECONOMICS ............................................................................................................................ 8
12.2. PROJECT FINANCING ...................................................................................................................... 8
12.3. PROJECT COST .................................................................................................................................. 9
12.4. SPACE REQUIREMENT .................................................................................................................... 9
12.5. MACHINERY AND EQUIPMENT .................................................................................................... 9
12.6. OFFICE EQUIPMENT & FURNITURE ........................................................................................... 10
12.7. RAW MATERIAL REQUIREMENTS.............................................................................................. 10
12.8. HUMAN RESOURCE REQUIREMENT .......................................................................................... 11
12.9. REVENUE GENERATION ............................................................................................................... 11
12.10. OTHER COSTS ................................................................................................................................. 11
13.
14.
14.1.
14.2.
14.3.
14.4.
14.5.
15.
CONTACTS OF SUPPLIERS AND EXPERTS ............................................................................ 12

ANNEXURE ...................................................................................................................................... 13
INCOME STATEMENT ................................................................................................................... 13
BALANCE SHEET ............................................................................................................................ 14
CASH FLOW STATEMENT............................................................................................................. 15
USEFUL PROJECT MANAGEMENT TIPS..................................................................................... 16
USEFUL LINKS ................................................................................................................................ 17
KEY ASSUMPTIONS ...................................................................................................................... 18
1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a
general idea and information on the subject. Although, the material included in
this document is based on data / information gathered from various reliable
sources; however, it is based upon certain assumptions which may differ from
case to case. The information has been provided on as is where is basis without
any warranties or assertions as to the correctness or soundness thereof.
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, its employees or agents do not assume any liability for any
financial or other loss resulting from this memorandum in consequence of
undertaking this activity. The contained information does not preclude any further
professional advice. The prospective user of this memorandum is encouraged to
carry out additional diligence and gather any information which is necessary for
making an informed decision, including taking professional advice from a
qualified consultant / technical expert before taking any decision to act upon the
information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -
Broiler Farm
2. PURPOSE OF THE DOCUMENT

The objective of the pre-feasibility study is primarily to facilitate potential
entrepreneurs in project identification for investment. The project pre-feasibility
may form the basis of an important investment decision and in order to serve this
objective, the document/study covers various aspects of project concept
development, start-up, production, marketing, finance and business
management.
The purpose of this document is to facilitate potential investors in broiler farm by
providing them a general understanding of the business with the intention of
supporting potential investors in crucial investment decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes
such reports reveal certain thumb rules; best practices developed by existing
enterprises by trial and error, and certain industrial norms that become a guiding
source regarding various aspects of business set-up and its successful
management.
Apart from carefully studying the whole document one must consider critical
aspects provided later on, which form basis of any Investment Decision.
3. INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was
established in October 1998 with an objective to provide fresh impetus to the
economy through development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the
national income, through development of the SME sector, by helping increase
the number, scale and competitiveness of SMEs" , SMEDA has carried out
sectoral research to identify policy, access to finance, business development
services, strategic initiatives and institutional collaboration and networking
initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment
has been a successful hallmark of SME facilitation by SMEDA.
Concurrent to the prefeasibility studies, a broad spectrum of business
development services is also offered to the SMEs by SMEDA. These services
include identification of experts and consultants and delivery of need based
capacity building programs of different types in addition to business guidance
through help desk services.
Broiler Farm
4. INTRODUCTION TO SCHEME
Prime Ministers Youth Business Loan, for young entrepreneurs, with an
allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
subsidized financing at 8% mark-up per annum for one hundred thousand
(100,000) beneficiaries, through designated financial institutions, initially by the
National Bank of Pakistan (NBP) and the First Women Bank Ltd. (FWBL).
Loans from Rs. 0.1 million to Rs. 2.0 million with tenure up to 8 years inclusive of
1 year grace period, and a debt: equity of 90: 10 will be disbursed to SME
beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa,
Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered
Tribal Areas (FATA).
5. EXECUTIVE SUMMARY
Broiler meat is a rich source of protein with an ever growing demand. In broiler
farming, the Day Old Chicks (DOCs) of specific broiler strain e.g. Babcock,
purchased from reputed hatchery/ company are raised on specially formulated
feed for a period of about six weeks, with a turnover of six flocks per year. Both
rural and semi-urban areas are suitable for this business.
Success of broiler farm largely depends on good management practices. After
brooding and rearing period, birds are sold at farm gate on Live Body Weight
basis to traders or transported to market. The farm gate price of live bird is
determined on daily basis.
A conventional broiler farm of 10,000 birds is suggested in this pre-feasibility
study as a viable economic size to enter this business. The proposed business
started in a rented shed requires total estimated investment of Rs. 2.16 million
with a staff of 03 persons. This project is proposed to be started on 90% debt and
10% equity basis. The projects Internal Rate of Return (IRR), Net Present Value
(NPV) and payback period are 51%, 4.96 million and 1.48 years respectively.
6. BRIEF DESCRIPTION OF PROJECT & PRODUCT

In the proposed broiler farm, the Day Old Chicks (DOCs) are raised on high
protein and energy feed in a conventional open housing system for a period of
six weeks (All in-All out system). The purpose built farm is acquired on rental
basis.
After six weeks, the birds are sold on live body weight basis to traders, wholesale
markets or sold directly to the shopkeepers in the urban markets. With ever
Broiler Farm
increasing demand for white meat, broiler farming can be a profitable venture.
Annually, six flocks of birds are raised on the farm, depending on area climate.
7. CRITICAL FACTORS
Background knowledge and related experience of the entrepreneur in

broiler farm operations.
Application of good poultry husbandry practices such as timely feeding,

watering, lighting, vaccination, medication, temperature / humidity control
and culling of uneconomical birds to ensure flocks best performance and
higher efficiency in disease-free environment.
Awareness of supply and demand of chicken in the market as the price of
chicken meat fluctuates throughout the year.
Efficient marketing of the project and bulk supply to wholesalers.
8. INSTALLED & OPERATIONAL CAPACITIES

In this pre-feasibility study, all the calculations have been based on a flock size of
10,000 birds. As six flocks are produced per year, hence total 60,000 birds are
reared per annum. There will be a lag time of two weeks for cleaning and
disinfection (e.g. fumigation) on the farm.
9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT

Rural and peri-urban areas around major cities are suitable for setting up a
broiler 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 establish links
with the market for buying farm inputs and selling of grown-up birds, swiftly. Suburban and rural areas around big cities e.g. Lahore, Rawalpindi, Faisalabad,
Hyderabad, Karachi, Peshawar and Quetta are recommended for starting a
broiler farm.
10.
POTENTIAL TARGET MARKET
Marketing of chickens follow traditional channels of distribution. Generally,

grown-up birds are distributed in the market through market agents and
intermediaries such as Arhti and wholesalers. In some cases, the middleman
provides DOCs and other farm inputs (feed, vaccination, medication etc.) to the
broiler farmers under a contract to buy back mature birds from them.
Birds are transported to the urban market and are sold to retailers or marketstreet poultry shops. Few poultry meat processing plants process raw poultry
Broiler Farm
meat into dressed chicken, quality cuts or other forms to the 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.
Major domestic markets include all major cities across the country including
Karachi, Lahore, Peshawar and Quetta etc. The wholesale and retail price of
poultry meat is determined daily on consumers demand and supply situation.
11.
BROILER PRODUCTION PROCESS

The broiler farming must begin with a clean and sanitized shed. The layout
of open conventional shed should be north-south to ensure clean, dry and
well-ventilated shed as this provides fresh air and carries off humidity.
The entire building and all equipment should be properly disinfected and
fumigated. The equipment and walls of the shed should be checked for
cleanliness, disinfection and spraying before the arrival of DOCs.
Disinfectants can be prepared with Phenol, Potassium Permanganate,
Carbolic Acid and Formalin. A solution of Sodium Hydroxide/Caustic Soda
with warm water can also be used to clean the house.
To sanitize the shed from germs and insects, it is fumigated with
Formaldehyde gas, produced by putting Formalin on Potassium
Permanganate. The house should be vacant and sealed for 30 minutes
after the fumigation so that the gas infiltrates in every corner.
Litter is spread on the floor to prevent direct contact of birds with the floor.
Rice-husk and sawdust are generally used as 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
birds.
The DOCs should be procured from well reputed hatcheries and should be
of uniform size, active and bright eyed, having healed navel. The skin of
shanks should be shiny.
The DOCs should arrive at the farm early in the morning so that the
management has a full day to observe them for any issue.
Flushing should be done by offering 250 gm glucose per gallon of water
as readily available source of energy and to clear the digestive tract.
Keep light at high intensity 2022 hours per day for the first week. Closely
regulate temperature of shed.
Special attention should be given to temperature and relative humidity
maintenance in the shed. The temperature for brooders should be 99 F,
encircled by chick guard/sheets. The brooder is essential part of broiler
Broiler Farm
farming, also known as Artificial Mother as it provides necessary heat to

DOCs shortly after arrival till 7 days of age.
Mostly, 24 hours light is provided during brooding and early growing
period. Initially, for first fifteen days, light intensity should be 40-60 watts
per 200 sq. ft of space which can be replaced by 15 watts bulb in the start
of third week.
Starter feed should be offered as a source of energy to chicks as it is

easily digestible and a good source of energy. Broilers are fed two types
of ration i.e. broiler starter (mash or crumb form) fed up to four weeks of
age and then broiler finisher (mash or crumb form) fed from fifth to sixth
week. There are many feed mills that prepare these formulated feeds.
Feeding three or four times each day will stimulate feed intake and
prevent wastage. The desired Feed Conversion Ratio (FCR) is 2.20.
Check regularly the availability of water and feed for chicks.
Keep feed free from aflatoxins. Remove all leftover feed from bins,
hoppers and troughs.
Place rodenticide out of the reach of DOCs.
Remove dead birds immediately and dispose them properly. Send the
dead birds to lab for postmortem examination if there is excessive
mortality.
Follow bio-security plans by not allowing visitors or attendants to enter
sheds without disinfected boots and clothes.
Follow the recommended vaccination schedule. Vaccination can be
provided to chicks through eye drops, drinking water and subcutaneous
injections. Following is a typical vaccination schedule for broiler birds;
Table 1: Vaccination Schedule for Broiler Birds

Age in Days
1 day
5 days
8 days
17-18 days
21-22 days
25-26 days
Disease
Infectious Bronchitis
Disease (IBD)
Newcastle Disease (ND)
Infectious Bursal
Disease (IBD)
Hydro Pericardium
Disease
Infectious Bursal
Disease (IBD)
IBD+ND
Vaccination
IB-Vaccine
ND-Vaccine (Lasota)
IBD Vaccine
(Gumboro)
HPS- Hydro Vaccine
IBD Vaccine
(Gumboro)
IBD+ND Vaccines
Procedure
Aerial spray or eye
drops
Eye drops
Eye drops
Sub-cut injection
In drinking water
In drinking water
Broiler Farm
Mortality losses should be kept below 8% by timely prophylactic measures

(vaccination, medication, disinfection etc.). The New Castle Disease and
Gumboro are extremely dangerous diseases that can eradicate the entire
flock.
12.
PROJECT COST SUMMARY
A detailed financial model has been developed to analyze the commercial

viability of broiler farm (10,000 birds) under the Prime Ministers Youth Business
Loan scheme. Various cost and revenue related assumptions along with results
of the analysis are outlined in this section.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as appendix.
12.1.
Project Economics
The following table shows Internal Rate of Return, Net Present Value and
payback period;
Table 2- Project Economics
Description
Details
Internal Rate of Return (IRR)
51%
Payback Period (yrs)
1.48
Net Present Value (NPV)

12.2.
Rs.4,955,546
PROJECT FINANCING
Following table provides details of the equity required and variables related to
bank loan;
Table 3 - Project Financing
Description
Total Equity (10%)
Bank Loan (90%)
Details
Rs. 215,529
Rs. 1,939,761
Markup to the Borrower (%age/annum)
8%
Tenure of the Loan (Years)
Grace Period (Year)
12.3.
Broiler Farm
PROJECT COST
Following requirements have been identified for operations of the proposed

business;
Table 4: Capital Investment for the Project
Capital Investment
Amount (Rs.)
Machinery & equipment
152,239
Furniture & fixtures
10,000
Office equipment
3,000
Pre-operating cost
144,625
Total Capital Cost
309,864
Raw material inventory
1,505,382
Upfront building rent
240,044
Cash in hand
100,000
Initial Working Capital
1,845,426
Total Project Cost
2,155,290
12.4.
SPACE REQUIREMENT
Following table shows calculations for project space requirement;

Table 5: Space Requirement
Space Requirement
Space (Sq.ft)
Management building
Shed space
100
10,000
Feed store
180
Room for workers
144
Pavement/ Boundary walls
104
Total Area
The rental cost is calculated at approximately Rs. 20,000 per month.
12.5.
10,528
MACHINERY AND EQUIPMENT
Following table provides list of machinery and equipment required for broiler farm
in open shed conventional housing system;
Broiler Farm
Table 6: List of Machinery and Equipment

Capacity
Birds/unit
Quantity
Brooder
500
20
1,000
20,000
Chick guard
200
50
150
7,500
Small waterers
50
182
90
16,380
Small feeding trays
50
182
90
16,380
Large automatic waterers
140
70
300
21,000
Large round feeders
130
80
300
24,000
Buckets
500
3,000
Manual balance
2,000
2,000
Exhaust fans
1,000
4,000
DOC shifting boxes
10
1,800
18,000
Drum heaters
2,000
8,000
Miscellaneous
5,000
5,000
Description
Cost
Rs/unit
Total
Rs.
Installation
6,979
Total Machinery &

Equipment
12.6.
152,239
OFFICE EQUIPMENT & FURNITURE

Table 7: Office Equipment & Furniture
Description
Telephone
Furniture and fixture
Total
12.7.
Quantity
1
Lump sum
Cost (Rs.)
3,000
10,000
Amount (Rs.)
3,000
10,000
13,000
RAW MATERIAL REQUIREMENTS
Following table shows raw material requirement for the proposed project;
Table 8: Cost of Material
Description
Unit
*Day Old Chicks (DOC)

Total feed required per birds
@ 2.2 FCR
Per DOC
60,000
35
Values
(Rs. per
year)
2,100,000
Per Bird
*56,304
178.2
10,033,372
Per Bird
*56,304
450,432
Total
units
Rate
(Rs./ Unit)
(Incl. 2% extra DOCs)
Vaccination, medication and

disinfection
10
Broiler Farm
(Incl. 2% extra DOCs)
Direct Electricity Cost

Litter & Spray
(Saw dust or rice husk)
Per bird
Per Flock
2.25
*56,304
126,684
14,000
84,000
* 2% extra chicks provided by DOC supplier to cover the transportation mortality, hence total birds to
consume feed and vaccination/ medication would be 56,304 per annum after 8% mortality loss.
12.8.
HUMAN RESOURCE REQUIREMENT

Table 9: Human Resource Requirement
Description
No. of Employees
Monthly Salary per

Employee (Rs.)
Owner / Farm manager
30,000
Farm Labor
12,000
Total Staff
Two semi skilled workers are needed to look after the general poultry husbandry
operations at the farm. In addition, owner would act as farm manager. The
salaries are estimated to increase at 10% annually.
12.9.
REVENUE GENERATION
Table 10: Revenue Generation

Sale Price
First Year
Description
Unit
Rs.
Production
Broiler birds (1.8-2.0
Per
261
56,304
kg) after 6 weeks
bird
Other revenues (litter,
Per
8
56,304
empty feed bags etc.)
bird
Total Revenue
12.10.
Revenue in
First Year Rs.
14,695,344
450,432
15,145,776
OTHER COSTS
An essential cost to be borne by the farmer is electricity expense which is

estimated to be Rs. 2.25 per bird. The fixed electricity cost for rest of the area is
estimated to be Rs. 800 per month. Average vaccination and medication cost per
bird is taken at Rs.8.00 per bird.
11
13.
Broiler Farm
CONTACTS OF SUPPLIERS AND EXPERTS

Table 11: List of Suppliers and Consultants
Feed Suppliers
DOC Suppliers
Supreme Feeds (Pvt.) Ltd.

Head Office: 176-Shadman 1 Lahore.
Ph: 042-37522104-7
Big Bird Poultry Breeders (Pvt.) Ltd.

2-A,Ahmed Block, New Garden Town
Lahore
Ph: 042-35835373-4
Ghazi Brothers
Ghazi House, D-35, KDA Scheme, No. 1,
Miran Muhammad Shah Road, Karachi
Ph: 021-111250365
Hi-Tech Poultry Breeders (Pvt.) Ltd.

1-A, Shadman Chowk Jail Road, Lahore
Ph: 042-37564503
Asia Feed (Pvt.) Ltd.

359 Shamsabad Colony, Humayun Road
Multan.
Ph: 061-6224414
Islamabad Poultry Breeding Co.

D-98, Satellite Town, Murree Road
Rawalpindi.
Ph: 051-4427139
Fast Poultry Feeds

12-KM Near Nai Sabzi Mandi Jhang
Road, Faisalabad.
Ph: 041-2577171-2
Jadeed Farms (Pvt.) Ltd.

6- Allied Commercial Plaza, Murree Road,
Chandni Chowk Rawalpindi.
Ph: 051-4851280-84
Rustum Feeds
Flat No.6, 1st Floor, United Center
Shamsabad, Murree Road, Rawalpindi
Ph: 051-4455362
Sadiq Poultry Pvt Ltd

SB Plaza, 48-C, Satellite Town, Chandni
Chowk, Rawalpindi
Ph: 051-111-505-050
Machinery & Equipment Suppliers
Consultants
Biovet (Pvt.) Ltd.

97-A, Jail Road Lahore
Ph: 042-37534508
Prof. Dr. M. Akram

Department of Poultry Production,
Uni. Of Veterinary and Animal Sciences
(UVAS), Lahore
Ph: 042-99211461
Eastern Veterinary Services

4- C Chouburji Center, Near Venus
Cinema, Multan Road, Lahore.
Ph: 042-37417649-50
Dr. Abdul Rehman

Director, Poultry Research Institute,
Shamsabad, Murree Road, Rawalpindi
Ph: 051-9290163-5
Dr. Fawwad Ahmad
Faculty of Animal Husbandry, University of
Agriculture, Faisalabad
Ph: 041-9920161-70
12
14.
Broiler Farm
ANNEXURE
14.1.
INCOME STATEMENT
Statement Summaries
Broiler Farm
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
15,145,776
13,082,489
2,063,287
16,615,310
14,390,738
2,224,573
18,231,798
15,829,811
2,401,987
20,009,935
17,412,793
2,597,142
21,965,885
19,154,072
2,811,813
24,117,430
21,069,479
3,047,951
26,484,130
23,176,427
3,307,703
29,087,500
25,494,070
3,593,431
31,951,207
28,043,477
3,907,730
35,101,284
30,847,824
4,253,460
9,665
16,524
28,925
523,300
1,189,257
874,030
874,030
10,631
16,524
28,925
575,630
1,303,638
920,935
920,935
11,694
16,524
28,925
633,192
1,429,456
972,530
972,530
12,864
16,524
28,925
696,512
1,567,857
1,029,285
1,029,285
14,150
16,524
28,925
766,163
1,720,098
1,091,715
1,091,715
15,565
16,524
842,779
1,858,638
1,189,313
1,189,313
17,121
16,524
927,057
2,042,849
1,264,854
1,264,854
18,833
16,524
1,019,763
2,245,482
1,347,948
1,347,948
20,717
16,524
1,121,739
2,468,378
1,439,353
1,439,353
22,788
16,524
1,233,913
2,713,563
1,539,897
1,539,897
Interest expense
Earnings Before Tax
160,999
713,031
147,396
773,539
129,518
843,013
110,155
919,130
89,186
1,002,530
66,476
1,122,838
41,881
1,222,973
15,244
1,332,704
1,439,353
1,539,897
Tax
NET PROFIT/(LOSS) AFTER TAX
31,303
681,728
38,531
735,008
48,952
794,061
60,369
858,760
72,879
929,650
90,926
1,031,912
105,946
1,117,027
122,405
1,210,299
138,403
1,300,950
155,479
1,384,418
Balance brought forward

Total profit available for appropriation
Balance carried forward
681,728
681,728
681,728
1,416,736
1,416,736
1,416,736
2,210,797
2,210,797
2,210,797
3,069,557
3,069,557
3,069,557
3,999,208
3,999,208
3,999,208
5,031,120
5,031,120
5,031,120
6,148,147
6,148,147
6,148,147
7,358,446
7,358,446
7,358,446
8,659,396
8,659,396
8,659,396
10,043,814
10,043,814
Revenue
Cost of goods sold
Gross Profit
General administration & selling expenses
Utilities expense
Professional fees (legal, audit, etc.)
Depreciation expense
Amortization expense
Mortality
Subtotal
Operating Income
Earnings Before Interest & Taxes
13
14.2.
Broiler Farm
BALANCE SHEET
Statement Summaries
Broiler Farm
Balance Sheet
Assets
Current assets
Cash & Bank
Accounts receivable
Pre-paid building rent
Total Current Assets
Fixed assets
Machinery & equipment
Furniture & fixtures
Office equipment
Total Fixed Assets
Intangible assets
Pre-operation costs
Total Intangible Assets
TOTAL ASSETS
Li abi l i ti es & Sharehol ders' Equi ty
Current liabilities
Accounts payable
Total Current Liabilities
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
429,254
1,396,169
20,004
1,845,426
2,065,675
1,689,364
22,004
3,777,043
2,444,877
2,044,131
24,204
4,513,212
2,817,420
2,473,398
26,625
5,317,443
3,175,115
2,992,812
29,287
6,197,214
3,507,378
3,621,303
32,216
7,160,896
3,800,652
4,381,776
35,438
8,217,866
4,037,714
5,301,949
38,981
9,378,644
4,196,819
6,415,358
42,880
10,655,057
4,613,466
7,762,584
47,168
12,423,218
13,563,326
13,563,326
152,239
10,000
3,000
165,239
137,015
9,000
2,700
148,715
121,791
8,000
2,400
132,191
106,567
7,000
2,100
115,667
91,343
6,000
1,800
99,143
76,120
5,000
1,500
82,620
60,896
4,000
1,200
66,096
45,672
3,000
900
49,572
30,448
2,000
600
33,048
15,224
1,000
300
16,524
144,625
144,625
2,155,290
115,700
115,700
4,041,458
86,775
86,775
4,732,178
57,850
57,850
5,490,960
28,925
28,925
6,325,283
7,243,516
8,283,961
9,428,216
10,688,105
12,439,742
13,563,326
1,173,137
1,173,137
1,305,725
1,305,725
1,454,778
1,454,778
1,622,618
1,622,618
1,811,938
1,811,938
2,025,873
2,025,873
2,268,076
2,268,076
2,542,819
2,542,819
2,855,103
2,855,103
2,438,791
2,438,791
0
0
Other liabilities
Long term debt
Total Long Term Liabilities
1,939,761
1,939,761
1,939,761
1,971,064
1,724,355
1,794,189
1,491,070
1,609,856
1,238,423
1,417,578
964,807
1,216,841
668,480
1,011,439
347,558
796,464
571,311
709,714
865,193
Shareholders' equity
Paid-up capital
Retained earnings
Total Equity
TOTAL CAPITAL AND LIABILITIES
215,529
215,529
2,155,290
215,529
681,728
897,257
4,041,458
-
215,529
1,416,736
1,632,265
4,732,178
-
215,529
2,210,797
2,426,326
5,490,960
-
215,529
3,069,557
3,285,086
6,325,283
-
215,529
3,999,208
4,214,737
7,243,516
-
215,529
5,031,120
5,246,649
8,283,961
-
215,529
6,148,147
6,363,676
9,428,216
-
215,529
7,358,446
7,573,975
10,688,105
-
215,529
8,659,396
8,874,925
12,439,742
-
215,529
10,043,814
10,259,343
13,563,326
-
Note: Total assets value will differ from project cost due to first installment of leases paid at the start of year 0
14
14.3.
Broiler Farm
CASH FLOW STATEMENT
Statement Summaries
Broiler Farm
Cash Flow Statement

Year 0
Operating activities
Net profit
Add: depreciation expense
amortization expense
Accounts receivable
Pre-paid building rent
Accounts payable
Cash provided by operations
Financing activities
Change in long term debt
Issuance of shares
Cash provided by / (used for) financing act
Investing activities
Capital expenditure
Cash (used for) / provided by investing acti
(1,396,169)
(20,004)
(1,416,173)
1,939,761
215,529
2,155,290
(309,864)
(309,864)
Year 1
681,728
16,524
28,925
(293,195)
(2,000)
1,173,137
1,636,421
Year 2
Year 3
Year 4
Year 5
735,008
16,524
28,925
(354,767)
(2,200)
132,587
594,608
794,061
16,524
28,925
(429,267)
(2,420)
149,054
605,827
858,760
16,524
28,925
(519,414)
(2,662)
167,840
610,343
929,650
16,524
28,925
(628,491)
(2,929)
189,320
605,879
1,031,912
16,524
(760,474)
(3,222)
213,934
589,601
(215,406)
(215,406)
(233,285)
(233,285)
(252,647)
(252,647)
(273,617)
(273,617)
(296,327)
(296,327)
Year 6
Year 7
Year 8
1,117,027
1,210,299
16,524
16,524
(920,173) (1,113,409)
(3,544)
(3,898)
242,203
274,743
557,984
506,664
(320,922)
(320,922)
(347,558)
(347,558)
Year 9
1,300,950
16,524
(1,347,225)
(4,288)
312,284
416,647
Rs. in actuals
Year 10
1,384,418
16,524
7,762,584
47,168
(416,312)
8,949,860
NET CASH
429,254
1,636,421
379,202
372,543
357,695
332,263
293,274
237,062
159,106
416,647
8,949,860
Cash balance brought forward

Cash available for appropriation
Cash carried forward
429,254
429,254
429,254
2,065,675
2,065,675
2,065,675
2,444,877
2,444,877
2,444,877
2,817,420
2,817,420
2,817,420
3,175,115
3,175,115
3,175,115
3,507,378
3,507,378
3,507,378
3,800,652
3,800,652
3,800,652
4,037,714
4,037,714
4,037,714
4,196,819
4,196,819
4,196,819
4,613,466
4,613,466
4,613,466
13,563,326
13,563,326
15
14.4.
Broiler Farm
USEFUL PROJECT MANAGEMENT TIPS
Technology
List of Machinery & Equipment (As per Section 12.5)
DOCs Selection:
Selection of disease free birds with strain characteristics,
body conditions and health.
Feed, Vaccination and Medication: Should be procured from reputed and reliable
sources.
Energy Requirement: Should not be overestimated or installed in excess and

alternate source of energy for critical operations be arranged in advance
Machinery Suppliers: Should be asked for after sales services under the contract
with the machinery suppliers
Quality Assurance & Standards: Whatever means required for animal

production quality standards need to be defined on the ear tags and a system of
record keeping to check them to improve credibility
Marketing
Product Development:
batch of animal
Ads & P.O.S. Promotion:

Business promotion and dissemination through
banners and launch events is highly recommended. Product broachers from good
quality service providers
Sales & Distribution Network:

are required with.
Price - Bulk Discounts, Cost plus Introductory Discounts: Price should never
be allowed to compromise quality. Price during introductory phase may be lower and
used as promotional tool. Product cost estimates should be carefully documented
before price setting. Government controlled prices shall be displayed.
Expert's help may be engaged for marketing of each
Expert's advise and distribution agreements
Human Resources
List of Human Resource (As per Section 12.8)
Adequacy & Competencies:

Skilled and experienced staff should be
considered an investment even to the extent of offering share in business profit.
Performance Based Remuneration:

Attempt to manage human resource
cost should be focused through performance measurement and performance based
compensation.
16
Broiler Farm
Training & Skill Development:

Encouraging training and skill of self &
employees through experts and exposure of best practices is route to success.
Least cost options for Training and Skill Development (T&SD) may be linked with
compensation benefits and awards.
14.5.
USEFUL LINKS
Prime Ministers Office, www.pmo.gov.pk

Government of Pakistan, www.pakistan.gov.pk
Ministry of Industries & Production, www.moip.gov.pk
Ministry of National Food Security & Research, www.mnfsr.gov.pk
Ministry of Education, Training & Standards in Higher Education, www.moptt.gov.pk
Government of Punjab, www.punjab.gov.pk
Government of Sindh, www.sindh.gov.pk
Government of Khyber Pakhtunkhwa, www.khyberpakhtunkhwa.gov.pk
Government of Balochistan, www.balochistan.gov.pk
Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk
Government of Azad Jamu Kashmir, www.ajk.gov.pk
Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk
Securities & Exchange Commission of Pakistan (SECP), www.secp.gov.pk
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
www.fpcci.com.pk
Punjab Board of Investment & Trade (PBIT), 23-Aikman Road, GOR-I, Lahore
Tel. 042-99205201, www.pbit.gop.pk
Sindh Board of Investment (SBI), 1st Floor, Tower B, Finance & Trade Center, Shahrae-Faisal, Karachi, Tel. 021-99207512-4, www.sbi.gos.pk
State Bank of Pakistan (SBP), www.sbp.org.pk
National Bank of Pakistan (NBP), www.nbp.com.pk
First Women Bank Limited (FWBL), www.fwbl.com.pk
Pakistan Poultry Association (PPA), Islamabad, www.ppacentral.pk
Pakistan Agricultural Research Council (PARC), Park Road, Islamabad Tel. 0519203966, www.parc.gov.pk
National Agricultural Research Centre (NARC), Islamabad, Tel. 051-9255061,
www.parc.gov.pk
National Veterinary Laboratory, NARC, Islamabad Tel. 051-9255108
University of Agriculture, Faisalabad, www.uaf.edu.pk
Lasbela University of Agriculture, Water & Marine Sciences, Lasbela,
www.luawms.edu.pk
Sindh Agriculture University, Tondojam, www.sau.edu.pk
Gomal College of Veterinary Sciences, Dera Ismail Khan, www.gu.edu.pk
KPK Agricultural University, Peshawar, www.aup.edu.pk
Pir Mehr Ali Shah Arid Agricultural University, Rawalpindi, www.uaar.edu.pk
University College of Veterinary & Animal Sciences, Islamia University Bahawalpur
(IUB), www.iub.edu.pk
17
15.
Broiler Farm
University of Veterinary & Animal Sciences (UVAS), Out Fall Road, Lahore,
www.uvas.edu.pk
Bahauddin Zakariya University (BZU), Multan, www.bzu.edu.pk
Veterinary Research Institute (VRI), Ghazi Road, Lahore Cantt., Tel. 042-99220140
Agribusiness Support Fund (ASF), Lahore, www.asf.org.pk
Poultry Research Institute (PRI), Rawalpindi, Tel: 051-9290162, 9290173,
www.poultry.punjab.gov.pk
Livestock & Fisheries Department, Government of Sindh, www.sindh.gov.pk
Agriculture & Livestock Department, Government of KPK,
www.khyberpakhtunkhwa.gov.pk
Livestock & Dairy Development, Government of Balochistan, www.balochistan.gov.pk
KEY ASSUMPTIONS
Table 12: Production Assumptions
Production capacity utilization

Maximum capacity utilization
Number of birds per flock
100%
100%
10,000
Extra Chicks supplied by DOC supplier (2%)

Number of flocks per year
Mortality rate
Annual production (birds)
200
6
8%
60,000
Time required per flock (days)

Lag time between the flock (weeks)
42
2
Table 13: Revenue Assumptions

Sales price per bird (1.8 Kg approx)
Average weight per bird (kg)
261
1.8-2.0
Table 14: Expense Assumptions

Day Old Chicks (DOC) in Rs.
Feed Conversion Ratio (FCR)
Average feed requirement/bird/day (kg)
Cost of feed (in Rs/kg)
Feed cost per bird (Rs.)
Cost of feed bag (Rs. per 50 Kgs Bag)
Vaccination cost per bird in Rs.
Spray cost per flock
35
2.20
0.09
45
178.2
2,250
8
6,000
18

Poultry Farm

Diunggah oleh

Informasi Dokumen

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Poultry Farm

Diunggah oleh

Hak Cipta:

Format Tersedia

Pre-Feasibility Study

Small and Medium Enterprises Development Authority

3rd Floor, Building No. 3,

5th Floor, Bahria

Bungalow No. 15-A

CONTACTS OF SUPPLIERS AND EXPERTS ............................................................................ 12

2. PURPOSE OF THE DOCUMENT

6. BRIEF DESCRIPTION OF PROJECT & PRODUCT

Background knowledge and related experience of the entrepreneur in

Application of good poultry husbandry practices such as timely feeding,

8. INSTALLED & OPERATIONAL CAPACITIES

9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT

POTENTIAL TARGET MARKET

Marketing of chickens follow traditional channels of distribution. Generally,

BROILER PRODUCTION PROCESS

farming, also known as Artificial Mother as it provides necessary heat to

Starter feed should be offered as a source of energy to chicks as it is

Table 1: Vaccination Schedule for Broiler Birds

Mortality losses should be kept below 8% by timely prophylactic measures

PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the commercial

Internal Rate of Return (IRR)

Payback Period (yrs)

Net Present Value (NPV)

Markup to the Borrower (%age/annum)

Tenure of the Loan (Years)

Grace Period (Year)

Following requirements have been identified for operations of the proposed

Machinery & equipment

Furniture & fixtures

Total Capital Cost

Raw material inventory

Upfront building rent

Initial Working Capital

Total Project Cost

Following table shows calculations for project space requirement;

Room for workers

Pavement/ Boundary walls

MACHINERY AND EQUIPMENT

Table 6: List of Machinery and Equipment

Small feeding trays

Large automatic waterers

Large round feeders

DOC shifting boxes

Total Machinery &

OFFICE EQUIPMENT & FURNITURE

RAW MATERIAL REQUIREMENTS

*Day Old Chicks (DOC)

(Incl. 2% extra DOCs)

Vaccination, medication and

(Incl. 2% extra DOCs)

Direct Electricity Cost

HUMAN RESOURCE REQUIREMENT

Monthly Salary per

Owner / Farm manager

Table 10: Revenue Generation

An essential cost to be borne by the farmer is electricity expense which is

CONTACTS OF SUPPLIERS AND EXPERTS

Supreme Feeds (Pvt.) Ltd.

Big Bird Poultry Breeders (Pvt.) Ltd.

Hi-Tech Poultry Breeders (Pvt.) Ltd.

Asia Feed (Pvt.) Ltd.

Islamabad Poultry Breeding Co.

Fast Poultry Feeds