2014
Proposal for
establishment of
a Rabbit
Multiplication &
Training Centre
Business Proposal
This document gives insights to a cooperation and
partnership proposed between Rabbit quill empire
Limited and Judith mutinda to consider with a view
of going into a management, training and
cooperation agreement. This document should give
the reader an understanding of the operation of the
unit, background of the market and strategies to be
employed by the different actors concerned and
their roles in the running of the breeding center
.
06-may2014l-2
Contents
EXECUTIVE SUMMARY
2
Background Ms JUDITH MUTINDA
Background Rabbitquill empire Ltd
Partnership Summary
2
2
BUSINESS BACKGROUND
3
Proposed areas of collaboration
4
5
7
7
ORGANIZATION PLAN 9
Organization Chart 9
Key Personnel
13
13
Objective 2: 15
Objective 3: 15
Objective 4: 16
Objective 5: 16
Production strategies
16
ACTIVITIES
17
FINANCIALS 18
Conclusion and sign off
19
EXECUTIVE SUMMARY
Background Ms.Judith Mutinda
She is the Founder and CEO of Gilgal Springs Foundation Non Governmental Community
Based Organization based in Kasambani market Kathonzweni District Makueni County. The
Foundation deals with education of the ovc .currently we have 596 children who depend on
Gilgal for their education.we have pre-school, primary ,secondary, colleges, technical
institutions and university. The major challenge that the organization is facing is to source funds
for school fees and care of the children. Judith is a widow with three children;form3, std5 ,pre
school.
given
the
deteriorating
weather
which
has
now
become
1.
2.
3.
4.
5.
low in cholesterol
low in saturated fats
high in protein
low in sodium
all white meat
Further, rabbit by-products such as skins, urine and droppings can be put to
good use. The skins are used in the making of mittens and gloves as the fur is
very fine thus naturally warm. The urine is used in the manufacture of insect
repellants especially for green houses and vegetable farming.
Rabbit Quaill empire Limited goals in the short term is to multiply the number of
rabbit farmers to attain yields of up to 3 tons per month in the next 12months;
with the long term effect of creating a livelihood for at least 200,000 households
in the next 3 years. They thus aim ventures into partnerships with individuals
and organizations that have the capacity to bring on board new rabbit farmers
thus promote the rearing of rabbits as a profitable business venture.
Partnership Summary
To venture into the new line of production, Ms JUDITH MUTINDA wants to set
up a rabbit multiplication, training and breeding Centre through collaboration
with Rabbit Quaill empire Limited. This cooperation and partnership will
specialize in breeding, multiplication and marketing of live rabbit, rabbit meat
and other by-products.
Rabbit meat is the best white meat and demand for rabbit meat is increasing in
the local market. Most of the five star hotels in Kenya are willing to introduce
rabbit meat in their menus but the challenge has always been a constant source
which could sustain the demand both locally and for the export market. The
Norfolk Hotel for example are serving rabbit on plate, the Safari Park & Casino
once introduced but could not get adequate supplies from farmers and were
forced to remove it from their menu. Most farmers are forced out of business
especially given huge demand. Buyers in the market strive to enter into
partnerships where they are assured of continued supply especially where the
commodity they are introducing into the market is new and not readily available
everywhere. Rabbits have a high multiplication rate but the demand constraint
on one farmer means that the farmers are not able to consistently supply to the
market.
In the local market (Kenya) one will easily find market demand for a minimum of
1ton of rabbit meat which translates to 350 rabbits (average weight 3kilos
dressed) per day. In one month the demand is 10,500 rabbits. Demand from the
export market is insatiable. China, Australia, Denmark, Germany and South
Africa require high quantities of rabbit meat. The export contracts available are
for a period of 5 years. Kenya will therefore be required to produce 630,000
rabbits per year for a single contract. The country has been able to export
barely less than 1% of the total export demand.
Is used as a direct insecticide however this market is not exploited due to small
production and poor construction of hutches. Our modern self-cleaning hutches
have a urine collection system that ensures that nothing goes to waste. Local
greenhouse farmers are buying urine at Kshs.50.00 per liter which they dilute in
a 1: 5 ratio in water and spray directly to their crops. Companies dealing in agrochemicals have shown interest on the same but small production has always
been a major setback.
Rabbit Manure:
Being the best composite manure with the highest contents of ammonia and
nitrates, rabbit manure is going for Ksh 50 Kenya shillings for a 20 kg bag. Most
farmers prefer using it on their farms than selling. Fresh rabbit droppings serve
as tilapia food for those with fish ponds, also done by our Aqua Culture
department.
Rabbit Skin:
Used in making ornaments in Asian countries and the best in making mittens,
gloves, winter boots and fishing rods. Rabbit skin is going at Kshs.300.00. Proper
training on slaughtering in done during the initial 3 months stage since the
quality of the skin depends on the skill of slaughtering.
Rabbit Quaill empire Limited would wish to contribute to poverty reduction,
employment creation and food security through promotion of commercial rabbit
farming. The big challenge is lack of adequate breeding stock and proper
training on management of rabbits. The farm has identified markets locally and
exports for rabbit meat but the supply is very low.
establishing breeding centers to provide quality breeding stock and offer basic
training on management of the enterprise. A weaned rabbit, one Month is
fetching between Kshs.500.00 to 1,000.00. Every extra month increases the
value by Kshs.1, 000.00, with a mature 4 Months rabbit going for between
8
Kshs.3, 500.00 to 5,000.00 depending on the pedigree, breed, health and the
region.
With high demands out there, we have engaged in a intensive awareness and
marketing campaign to the middle class investors so as to meet a target of
10,000 breeding rabbits per county to meet the international markets. Starters
are given routine trainings and every available supportive material that can
increase the investor motivation for maximum production.
The following are the facts which prove that rabbit farming is a very lucrative
commercial farming practice where the market waits for the product.
a) Cholesterol and % of fat levels in rabbit meat are much lower than
chicken, turkey, beef and pork.
b) Unsaturated fatty acids is 63% of total fatty acids.
c) Rabbit meat gives the highest in protein %.
d) A doe rabbit that weighs 4.5kg can produce 145kg of meat in a year. This
is more than a cow that requires 2 acres of land to raise.
e) Rabbits will produce 2.7kg of meat on the same feed and water as a
compared to a cow that will produce 0.45kg of meat.
f) Rabbits are reared in raised structures and are therefore some of the
cleanest meats.
g) Rabbits are among the most productive of domestic livestock 1 rabbit can
give birth up to 6 times in a year with average litter of 7.
h) Rabbits lend themselves to both small and large scale production.
i) Rabbit manure has the following percentages of dry material.
2.20% Nitrogen
0.87% Phosphorus
2.30% Potassium
0.36% Sulfur
1.26% Calcium
0.40% Magnesium
As the world human population grows there will be less land to raise food. The
rabbit will play a more increasing role in this supply.
Strategic Approach
Vision:
To be the largest rabbit supplier of rabbit products in the region,
Mission:
10
Objectives
1. To offer product sensitization to persons of all genders and further act
as a training facility for at least 50 trainees every month,
2. To establish breeding center for the original 10 breeds introduced at
the start of the project,
3. To establish efficient marketing channels and processing facilities, thus
create job opportunities in rabbit production and processing,
4. Identify and establish linkages with existing rabbit farmers especially
farmers from vulnerable groups and /or institutions in Kenya.
5. Raise household farm incomes to at least Kshs 20,000 per month.
MARKETING PLAN
Training
Rabbit Quaill empire Limited conducts three days training sessions at the
multiplication center. The revenue generated from this training is shared
between the consulting firm (DEMAS Limited) and the Centre. Key aspects
covered in the course include rabbit husbandry, construction of hutches,
slaughter and safe handling of rabbit meat, skin management tanning, recordkeeping, customer care, networking, marketing and Management of working
capital. We target to hold training session for at least 100 persons per month.
Through this program it is our anticipation and belief we will be able to meet our
primary objective of reaching out to farmers and expand our stocking levels to
meet local market demand within the first 12months and get access to the
international market within 24 to 36 months.
Sale of Breeders
The market opportunity for rabbit and rabbit products is immense both locally
and internationally. The project will start by keeping 40 breeding stock (10 bucks
and 60 Does).
Breeding Stock Sales: The center will be able to sell breeding stocks from the
third month after the inception of the project. Going by our experience, we
anticipate each of the breeders will have an average of 7 litters. The mortality
rate is between 20 and 30% which is an average of 5 litters surviving through to
the weaning stage.
11
Sales revenue from the sale of rabbits if sold at weaning stage (one month after
birth) (60*6) 360 assuming 100% sale @Ksh 500 is Kshs.180,000.00. Compare
this to sales revenue from sale of breeders if sold at 4 months and served
@Kshs.2,000.00 on a sell and walk away basis (no management agreement) is
(60*6) assuming 100% sale is Ksh 720,000.00.
The does produce after every 60 days meaning we will be able to replicate the
selling process as above every 2 months.
Revenues from sale of finished products
The organization still has the option of slaughtering the rabbits and selling the
meat and the skin.
One rabbits weighs between 3 and 5 kilograms at 5 months. The cold dressed
weight for rabbit is 50% of live weight. One kg of live rabbit will go for Kshs.400.
Selling the 240 slaughtered mature rabbits gives Rabbit Quaill empire Limited
384,000 (240rabbits * 4kg average weight/rabbit *400sh per kg live weight).
The skin will be sold at Ksh.300 each which will earn Ksh.72, 000 (240*300)
while other by-product that can be sold is rabbit urine. A Farm of 40 can give an
average of 2 drum per month. This can be sold at Ksh.15,000 per drum giving a
total of Ksh. 60,000.00 every 2 months. The total revenue therefore will
beKshs.516,000 every two months or kshs.258,000 per month.
Rabbit Quaill empire Limited will be buying the rabbit and rabbit products from
the multiplication center and sell to the market since they have already secured
orders for rabbit meat. We have also secured an order for urine and skin from
private investors within the country. When the quantity of rabbit and rabbit
products increases the organization plans to market the product internationally.
Competitor Analysis
From market intelligence, we have established that there are several large scale
rabbit producers in the country today who have attempted to sell and promote
rabbit products. Most of these producers are strained by market demand to the
extent that they are not able to expand further due to resource constraints.
Given this intelligence, we wish to bridge the shortfall in supply of rabbit meat in
the market and further venture into new markets as our production levels
increase. We will target to supply to leading 5 Star hotels as well as the
international market for both meat and skins in addition to the domestic
12
ORGANIZATION PLAN
Organization Chart
MS JUDITH MUTINDA TEAM
Ms Judith mutinda
School Manager
Field Operations
Manager
Rabbit Section
sup
Training Coordinator
Support staff
Marketing Coordinator
Abattoir Staff
Key Personnel
1. Mr. JOSHUA OLUYALI MSc (Entomology) BSc (Agriculture)
Joshua has a widespread experience in management and administration in the
Kenya public service. He brings to this assignment over 25 years experience
gathered from the public service during which he has served at all levels of the
Government
of
the Republic
of
Kenya.
He
has
helped
establish
new
Agriculture. The two activities have contributed to the good performance of the
ministry in the performance contracting concept introduced in government to
improve service delivery.
Joshua also served as deputy CEO for Cotton Development Secretariat which
was established to revive the cotton industry and within 3 years a new Cotton
Development Authority had been established. During that period Mr. Oluyali was
the lead person in the development of the 1 st Cotton Industry Strategic Plan.
Joshua has also participated in the development of National Agriculture Sector
Extension Policy (NASEP).
The following is a summary of Joshuas credentials:
1. Name of Consultant
:
Mr. Joshua Oluyali
2. Profession
:
Agriculture and Rural Development
3. Year with Entity
:
Since inception
4. Date of Birth
:
Jan 1st 1962
5. Nationality
:
Kenyan
EDUCATION
No
Institution Attended
Period
1991
University
92
University of Nairobi
1983
86
OTHER RELEVANT TRAINING
Strategic Leadership Course Kenya Institute of Administration October to
December 2011, Corporate Governance Course Serena Hotel October 2007.
WORKING/FIELD RECORD
Position Held
Organization
Period
Year
s
Current
Ministry of Agriculture
H/Q
2005-2010
Ministry of Agriculture
2000 -
14
Coordination Branch
H/Q
2005
Ministry of Agriculture
Coast Province
1993 2000
Ministry of Agriculture
Tana River District
1986 1991
EDUCATION
Institution Attended
Period
2010 To
date
2000 2003
International
Livestock
EMPLOYMENT HISTORY
Position Held
Organization
Period
Director Business
Development and
Marketing
Since inception
Sales Representative
Primavarapicknick
snacks
2005 to 2009
Years
OTHER INTERESTS
Member: The Association of Rabbit Breeders and Exporters; Vet.Com, Kenya
Rabbit Stakeholders Forum: Kajiado Rabbit Breeders Association, Mt Kenya
Rabbit Breeders Network. Moses is married and father of 2 boys aged seven and
four.
The Business Management
This business is a partnership between Ms JUDITH MUTINDA and Rabbit Quaill
empire Limited but will be wholly funded by Ms JUDITH MUTINDA while Rabbit
Quaill empire Limited will provide technical expertise, animal health services
and create market linkages and also facilitate the trainings. The estimated cost
of operating one center according to the provided budget is Ksh 330,000. Gilgal
intend to run 28 projects of this magnitude. The entire project will therefore cost
Ksh 9,240,000.
15
Training
Constructio
n
Stockin
Breeding
Slaughtering
Selling
Packaging
ACTIVITIES
Rabbit
Quaill
empire
Limited
will
provide
basic
training,
and
routine
management (disease control and treatment). Rabbit Quaill empire Limited shall
also provide the market for all the rabbits at competitive prices. The
beneficiaries shall be expected to provide rearing hutches, labour for the
construction, finance purchase of the breeds, training and registration of
members into the association of rabbit breeders and exporters.
By establishing a training and demonstration center the project will provide one
stop solution point. All interested farmers will be encouraged to visit the
demonstration center to learn and access a source of breeding stock.
16
17
BUDGET
Activities
Date
required
18
Unit cost No
Ksh
units
Start up
One month
Week 3
Month 2
Month 2
3trainees
Month 3
Every
days
Monthly
of Amount
1week
15
10days
100,000.
6months
Actors
RABBITQUILL
LTD
RABBITQUILL
LTD
RABBITQUILL
LTD
600,000. CLIENT
FINANCIALS
19
20