You are on page 1of 28

Contents

The rabbit breeds, which are popular in the area, are New Zealand White, Californian, Soviet
Chinchilla and Gray Giants. These rabbits are reared for their meat as also for fur and wool.
Breeding stock for a rabbit farm may be bought from local breeders. Medium-sized rabbits breed
at 6 to 7 months of age and give birth after a month of gestation. Female rabbits can produce up
to 50 live rabbits annually, with births high during the summer. They produce an average of 9
kits per birth.

Rabbit Farming Essentials

Check with your local office about regulations that you must comply with in relation to
rabbit farming.
Breeding rabbits for laboratories requires special license and controlled conditions to
meet customer-required characteristics, such as weight and age
If you are planning to sell rabbit meat, you should think of slaughtering and storage
facilities in addition to your usual farm facilities
Temperature control in rabbit breeding is important as rabbits are sensitive to extreme
temperatures
Make sure that you have each rabbits health record in order. This is particularly
important if you are raising rabbits for sale as breeding stock. Potential buyers might ask
to see them when looking for stocks to buy
Maintain a sanitary operation to prevent the outbreak of disease in your farm that could
potentially be damaging to the business
To keep your startup cost low, you can construct rabbit housing yourself from available
construction materials you have

1.Introduction...............................................................................................2
2. Executive Summary.................................................................................2
3. Description of Industry and Opportunity.................................................3
4. Economics, harvest Potential..................................................................5
5. Marketing Plan.........................................................................................8
6. Design and Development plan...............................................................13
7. Production Plan......................................................................................15

8. Organizational Plan...............................................................................19
9. Assessment of risk................................................................................21
10. Financial planning...............................................................................23
11. Conclusion..........................................................................................24
12. Annexure 1 ..............................................................................................
13.Annexure 2................................................................................................
14.Annexure 2................................................................................................
15.Annexure 2................................................................................................
16.Annexure 2................................................................................................
17. Performa Income statement...................................................................
18. Balance sheet.........................................................................................

1.

INTRODUCTION:

i. Name and Address of Business


Business Name:
Office/ Farm Address:

Bunny farms
Kahuta road opposite police academy
Sihala
Islamabad
Ph: 051-13434546
Fax: 051-1232432
Email: bunny.farms@gmail.com

ii. Name (s) and Address (es) of principal(s)


Partners.. Mehwish, NIda , Ahsan and Humera

iii. Nature of Business


This business will provide to consumer different species of rabbit as a pet we
sell them directly to different schools zoo and in parks where required and
also a very low cost and healthier meat of Rabbits too in our country. This will
be achieved by establishing a rabbit farm to grow produce rabbits chicks and
selling the rabbit meat to hotels and restaurant.

iv. Statement of Financing Needed


Description of Required
work
Net salaries (Detail as per Assumption sheetAnnex 5)
Farm Supplies (Feed)
Office Renovation (Once)
Advertising Budget
Land Rent (5 acres) for 1 year
Utility Bills
Fuel/Transportation
Selling Expenses
Entertainment
Miscellaneous
Farm Construction (Paddocks, Rooms, Fence
etc)
Equipment, Machinery, Vehicles, Furniture &
Fixtures
300 Chicks @ 14000 per 1 chick and 3 Egg
laying Trios @ 250000 PER Trio
TOTAL FINANCING
REQUIRED

Total Expense (Rs)


3756000
1530000
25000
870600
480000
84000
60000
60000
36000
24000
2500000
2073600
4950000
16449200

Note: Details as per Annexure-5 (Assumption Sheet)

1. Executive summary
The Ostrich is an endemic bird of African origin. It is characterized by its
ability to survive in temperatures ranging from two to fifty degrees Celsius; it
can be reared on barren land and mainly feeds on Alfa-Alfa, Lucerne and
water.
Today, ostrich farms are considered to be among the most profitable
agricultural projects. Ostriches are raised commercially for their meat, hide
and feathers. Currently commercial farming is going on in about 100
countries in all continents and regions
Ostrich meat is Halal and it was eaten by companion of Holy Prophet
(PBUH) after accepting Islam.
Pakistan is one of the most suitable places to undertake commercial farming.
It has cheap labor, a suitable climate, inexpensive fodder, low business cost.
Agriculture shares in Pakistans National GDP 21.0 % and Livestock share in
National GDP 11.4 %. And an increase in Meat and Meat preparation exports
39.8 %/
.More than 50% Pakistanis prefer meat over vegetables and pulses
(GALLUP PAKISTAN Islamabad: March 30, 2009)

Over the years, many changes have been observed in the pattern of meat
consumption in the country.
There were 10.8 million hypertension cases in Pakistan according to the
National Health Survey 1994. According to 1998 estimates there are now
over 12 million cases. Nearly one-third of all deaths in the country are due to
heart disease, and 1% of babies born here, 5% of school-age children, and
14% of the adult population suffer from some form of cardiac disorder.
Ostrich meat is low fat and cholestrol free which can save many of cardiac
patients of pakistan.
Chicken, beef, mutton, fish suppliers are competitors for ostrich, but due to
its low fat meat, luxurious leather, fancy feathers, and oil ostrich will defend
its position in market.
The ostrich industry is a growing economic sector that is gaining popularity
within the market as recognition is given to the characteristic low fat and
cholesterol content of the meat which makes it the healthy alternative to
other red meat.
There are a significant number of households, health conscious individuals,
restaurants and hotels are interested in ostrich low cholesterol and healthy
meat and leather industries in Pakistan is the best potential market for
ostrich leather.

There is a well established Export Market for Ostrich Meat and leather in Iran,
Saudi Arab and UAE.
There are four Major markets for Ostrich and its products. Due to friendly
nature and beautiful looks, Ostrich is very popular as a pet bird in Pakistan.
And the most prominent Pakistan meat and leather market: as many
restaurants, modern retail and hyper markets are willing to pay premium
prices for regular supply of Ostrich meat. Numerous leather and
pharmaceutical industries in Pakistan are interested in buying Ostrich Oil,
leather and feathers.
For export there is a great demand of ostrich meat and leather in Iran, UAE,
Central Asia, Far East and Korea.
In Pakistan, Many farmers have started buying Ostriches from other farmers.
Many new farmers will buy chicks and eggs from senior players of industry.
The business shall be named SKIES ostrich farm.
The company will be providing brochures regarding the benefits derived from
ostrich products and distribute it to potential customers. This is to create
awareness about ostrich and the existence of the ostrich farm and to
eliminate any uncertainties and confusions about ostriches.
Website with Name of www.skiesostrich.com will be established.
The business is a general partnership at will consisting of three partners. The
partnership agreement shall set forth the capital contributions needed and
the share of each partner including the profit and loss ratio.
1: **** **** Sultani
2: **** Alam
3: **** chaudhary
With a capital of Rs. 16449200/- we will start a farm by buying and grow
owing 300 chicks beside 3 egg laying Trios. 300 Chicks will be grown to reach
slaughter able age for 12 months. Mean while new chicks will be produced
through eggs laid by 3 Trios and we would get above 300 chicks available for
next year. Fast growth and high production level will make the ostrich meat
cost competitive. By selling meat @ Rs. 400/- per Kg beside by-products like
Hide and Plumage of Ostrich Pay back period for this project is expected 1.4
years. Overall this is a very profitable venture and virtually there would be no
competition in beginning period of this project.

2.
Description
Opportunity

of

Industry

and

With the meat situation what it is and the economy in turmoil now is a good time to consider the
rabbit business. The best way I know to put good food on the table and a few Rupees in your
pocket, without a large investment, is raising rabbits. The profits can come in many ways: You
can sell them to markets as pets, Schools or in parks zoo etc, even the Rabbits skin is use as
wool. Meat, however, is by far the most important product.
Large variety of possible products and their expected high profit potential.
Currently commercial farming is going on in about 100 countries in all
continents and regions. Some countries where this is done with official
backing are: Saudi Arabia, China, Turkey, Iran, Egypt, Jordan, Israel, and
many African countries.
Pakistan is one of the most suitable places to undertake commercial farming.
It has cheap labor, a suitable climate, low business cost and a population of
businessman/farmers/investors who are willing to enter into this new
venture.
Rabbit meat is light, healthy, low-fat, tender and also very tasty and easily digestible
Meat is highly delicious and healthy. Most importantly, It can be sold at a
price of PKR 150/Kg with great profit.
People at Pakistan cooked rabbit meat with normal cooking methods and all
of them appreciated the taste and most of them ordered it at a high Price.
Many professionals including Top chefs of Pakistan tested rabbit meat and
appreciated its taste.
Rabbits are farmed-raised for their meat and fur. The fur of the rabbit is known for its warmth
and is best known for use in the lining of coats. Rabbit fur is also used in dressing to line hats,
gloves and shoes. It is also used for stuffing, bedding and making felt.

Opportunity Size:
Rabbits are used for their wool, fur, and meat. They are also used as testing specimens by
laboratories. Their breeds usually determine how they are used. And so, before starting a rabbit
farm, it is important that a prospective rabbit breeder determines to whom he should sell his
rabbits. Will it be to restaurants, meat shops, individual purchasers, schools, laboratories,
hospitals or breeders?

3. Economics, harvest Potential


No other animal multiplies itself as fast as Rabbits. Rabbits produces at least
144 baby rabbits every year. Rabbit meat is free of any unnatural harmful
treatment

MEAT

PROTEIN

FAT

CALORIES

Rabbit

20.8

10.25

795

Chicken

20.0

11.0

810

Beef

16.3

28.0

1440

Lamb

15.7

27.7

1420

1. The meat has a high percentage of easily digestible protein.


2. It contains the least amount of fat among all the other available meets.
3. Rabbit meat contains less calorie value than other meats.
4. Rabbit meat is almost cholesterol free and therefore heart patient friendly.
5. Rabbits are one of the most productive domestic livestock animal there is. Rabbits can
produce 6 pounds of meat on the same feed and water as the cow will produce 1 pound of
meat on the same feed and water.
6. So as you can see there are many health benefits to eating rabbit meat. It is healthy for
you and cheap to produce. Why not try to incorporate some rabbit meat into your diet
today.

INDUSTRY ANALYSIS
i. Macro Environment (Economy, Culture, Technology & Legal)
Economy:
Food prices especially mutton and beef are very expensive in Pakistan. By
establishing own farm and self production makes Rabbit meat economical.
Production of rabbits can improve economical situation of Pakistan as we can
produce and export the Rabbits Meat, , Skin of rabbit use as a wool which are
highly demanded items in western markets.
Culture:
Pakistanis are meat lovers. It is part of our culture to serve meat made
dishes for our guests and also to prepare and serve meat made dishes on
special occasions. Meat is cooked in variety of manners which include
Karrahi, Kabab, Korma and Pulao etc. Rabbit would provide a healthier and
less costly alternative to our society in competition with beef and mutton.
Technology:
Rabbit farming requires modest investment as it needs only simple facilities and small land area.
A small rabbit farm could have 15 to 100 rabbits requiring between 5 Lack and 10 lack Rupees in
startup capital. To start your rabbit farm, prepare a rabbit hutch that is well lit and well ventilated
with heating and cooling systems. Metal cages are usually recommended for its ease of cleaning.
Equip the cages with feed hopper, watering system, and nest box.
Legal:
Farming is not only legal business; it is also promoted by Government. There
are not legal issues involved in this business.
ii. Specific Industry Environment, Future Outlook, Trends of
Industry, Growth Rate, Govt. Policies and Competitor Analysis
(Direct and Indirect)
In Pakistan Ostrich industry is new and a few farms have been established
which are mainly located in Sind area. Only one company Pakistan Ostrich
Company based in Karachi is promoting Ostrich business by importing,
selling and growing ostrich chicks.
Future of Ostrich farming is so bright that this bird is also known as Future
Bird. Ostrich meat is healthier with very low fat content. Beside its meat, all
of its part including hide, Feathers, Bones are sold and have good demand in
western countries. In Pakistan growing demand of meat and corresponding
increase in beef, mutton and chicken prices would help Ostrich business
prosper rapidly because it is healthier and less expensive alternative for
these.

Competition level is not significant at the moment and especially there is no


Ostrich Restaurant operation in Pakistan at the moment. Similarly ostrich is
not at all a part of menu for hotels or restaurants in our country. In Europe
and America many Ostrich Restaurants are operational and ostrich meat has
already become famous a healthy meat having low fat and calories content.
Ostrich leather is the third most luxurious leather after crocodile and snake.
Ostrich feather are used in fashion industry.
iii. Market Segmentation Basis and Identification of Target Market
Although rabbit meat is suitable for eating and much healthier alternative for
Mutton and beef and can be offered to young to old all age people living all
over Pakistan but we will specifically target Top Class hotels and restaurants
located in Rawalpindi and Islamabad to enter into market.
The fur of the rabbit is known for its warmth and is best known for use in the lining of coats.
Rabbit fur is also used in dressing to line hats, gloves and shoes. It is also used for stuffing,
bedding and making felt. So we sell rabbit fur to different industries in Pakistan that are involve
in stitching business.

4. Marketing Plan
i. Products

Meat: The meat has a high percentage of easily digestible protein.It contains the least amount
of fat among all the other available meets.Rabbit meat contains less calorie value than other
meats. Rabbit meat is almost cholesterol free and therefore heart patient friendly.
Rabbits are one of the most productive domestic livestock animal there is. Rabbits can produce 6
pounds of meat on the same feed and water as the cow will produce 1 pound of meat on the same
feed and water.

Rabbit fur: Rabbits are farmed-raised for their meat and fur. The fur of the rabbit is known
for its warmth and is best known for use in the lining of coats.
Rabbit fur is also used in dressing to line hats, gloves and shoes. It is also used for stuffing,
bedding and making felt

Rabbit as a pet: there are a lot of Montessori schools in Rawalpindi Islamabad


where there is a type of mini zoo Other than that different public parks Like Ayub park We can
also sell rabbits their And also a pet market situated in Rawalpindi college road.
We also sell our rabbits through OLX where individuals can contact us if they are willing to
purchase

ii. Pricing (List price, Discounts, Allowances for middleman, Credit


terms)
Well sell Ostrich meat @ Rs. 400/- per Kg. This would be a fixed price and no
discounts are applicable because there is no competition at the moment and
also because Ostrich meat supplied by us is already at competitive price
compared with Beef and Mutton.
Average hides size 14 sq.ft/bird having value Rs. 16500/- (USD 25/sq.ft)
iii. Distribution
Well distribute Rabbit Meat ourselves for which a Delivery Person would be
hired and would also be provided with a Cargo Pickup. Delivery person would
be responsible to collect the packed meat against each order to deliver the
orders at customers doorstep. Thus our distribution system would not

involve any Wholesaler/retails. Our geographic coverage is also limited to


Rawalpindi and Islamabad region as we are only targeting the Top class
hotels and restaurants with in this area. Same as with the rabbit as a pet
iv. Promotion
Since our target market is limited to top class hotels and restaurants some
specific schools children parks and zoo, our marketing strategy would be
based mainly on personal selling. We would advertise in newspapers which
are read by our target market staying in or visiting these hotels for
lunch/dinner and on olx if someone interested to buy rabbit as a pet. We
would also advertise in The News, Dawn, Jung and use brochures to create
awareness among the customers.
Our advertising budget is
Fig: Advertising Budget
ADVERTISING BUDGET:
Description:
Jung(Monthly)
The News (Rwp)
Dawn
Colored Brochures
Total budget

AD SIZE/TIME
5 Column x 3
cm
5 Column x 3
cm
5 Column x 3
cm

RATE
(Rs)

Ad/mon
th

Qty/ye
ar

Budget
required

32000

192000

1365

48

65520

2700

48
1000

129600
123480
510600

v. Controls (Sales Forecasts, Marketing Objectives, Sale Targets)


At starting of the business we sell the rabbit meat few selected top class
restaurant in rwp and Islamabad. At starting almost our starting sales is
about 30 to 40 kg per day. We will increase the sale and find more customers
in future by creating goodwill other than that we also sell our farm rabbits at
different places as pets
Target Market Basis:
1. Rabbit Meat is already popular in foreign countries and foreigners
staying in Islamabad hotels are potential customers being already
aware of rabbit meat benefits.

2. People coming in these hotels/ Restaurants like to go for something


new and also have money to spend.
3. Visitors of these hotels can be easily targeted for healthy, low calories,
low fat meat which is already famous in Europe and America
4. We'll only require creating awareness among visitors of these hotels
instead of going for big advertising campaigns.
5. Our production capacity can easily meet and fulfill requirement of
these hotels based on assumption that 10 Kg/day would be sold to
these hotels. Selling 10 Kg/day to only 6-10 hotels/restaurants makes
our business highly profitable.
6. Later we can increase of our production to sell rabbit meat to small
hotels/restaurants and meat shops.
Marketing Objectives:
To create goodwill by providing best services in terms of efficient
delivery and consistent quality.
To achiever customer satisfaction through continues interaction and
improvement against feedback.
Sales Objectives:
To establish a customer base of 5 hotels/restaurants right in start of
business
To sell almost 5 Kg meat/day to each customer
To increase the customer base up to 7 customers by start of second
quarter
To increase the customer base up to 9 customers by start of third
quarter
To increase the customer base up to 11 customers by start of fourth
quarter
To achieve overall sales revenue Rs. 18,224,000/- with in first year of
starting sales.

5.

Design and development plan

i. Mission Statement, History of Venture, location and Size of


Business

Mission Statement:
To fulfill the food demand for growing population, we have to find out different ways of food
production. The rabbits can be a great source of food production.
There is a great opportunity of rabbit farming in our country people also love them as a pets
History of Venture, location and Size of Business:
This business is relatively new business in Pakistan but its resemblance with
Poultry Farming is a plus point. We have decided to establish our farm in
sihala, Islamabad where land is available on rent @ Rs. 40000/- per acre per
month. Environment of this area is suitable not only for Ostriches but also to
produce its feed which mainly consists of fodder. Well start our business at
small level by growing 300 chicks along with 3 breeder trios to increase the
Ostrich population and attain self sufficiency in production of Ostrich meat
for our Restaurant.
ii. Product/ Service Details
The ostrich grow to market weight in 12-14 months. They available meat
weigh is approximately 90-100 Kg at this time which is roughly 70% of
overall Ostrich weight that is normally 130 Kg. Well slaughter Ostriches at
this age and deliver meat at hotels and restaurants. For this service well use
a centrally Suzuki Cargo Pickup with refrigeration facility and deliver the
orders at customers doorstep. Hotels can then cook Ostrich Meat and offer
to their guests in the form of Steak, Karrahi, Kabab and other forms.
iii. Service(s)
To start with, well grow ostrich and slaughter it at the age of 12-14 months
and deliver Ostrich meat at selected Top class Hotels/Restaurant only. After
achieving higher levels of annual Ostrich Production, well start delivery to
small hotels/restaurants along with home delivery and also use internet for
getting orders.
iv. Farm/Office Equipment and Personnel

Management Team

Owners:

**** **** Sultani, **** Alam. **** Chaudhary

Personnel:

Land:

Equipment:
Fodder cutters

Building:
3 Paddocks as per drawing (attached in Annexure-1) with
hay
storage, Incubation room and equipment storage
rooms. Rest of
land to be used for hay and fresh fodder
production.

Vehicles:

1 x Marketing Manager, 1 x Purchaser/ Delivery person,


10x Farm staff, 1 x Driver, 1 x Accountant, 1 x Office boy
5 Acers
1 Incubator (129 Eggs) , 1 Pump 20 hp, Grass and

1 Suzuki Mehran for Marketing Manager


1 Cargo Pickup for meat delivery

6. Production Plan
Ostrich Value Chain

The value chain starts with the rearing of birds in the incubation phase where
eggs are hatched in incubators to produce 380 birds per 42 day
cycle. Feathers are plucked from the age of 6 months, and slaughter takes
place at the age of 12 to 14 months. When slaughtered the adult bird weighs
approximately 90kg.
Operating cycle
The comparative economics of ostrich v/s beef cattle indicates that ostrich
farming has an edge over cattle farming in terms of high returns on
investments. Added to the high returns the operational advantages found
are:
- The bird can be reared in paddock along with sheep, goat and cattle
- The birds need no dipping, drenching, milking and shearing.
- The adaptability of the bird is equally high on annual and perennial
pastures.
Complete Manufacturing Process

20-24
Months old
Trios

Eggs

Hatching and
Incubation

Market
4 Weeks old
Chicks

Feeding
Growing &

Ostrich are
slaughtered
to produce
meat

Fig: Manufacturing Process

Ostrich Farm production plan consists as shown above consists of the


following activities:
i. Buying 300 Chicks and 3 Egg Laying Trios from market
ii. Trios lay the eggs
iii. Eggs are hatched/ incubated to produce more chicks
iv. All Chicks are fed and grown to the age of 12-14 months which are then
slaughtered to produce meat as our end product
i. Hatching Machinery
Model Description: Full Automatic ostrich egg incubator YZTIE-24
Egg Incubator Holding
Capacity(PCS)
Model Chicken
eggs
Pingeon
eggs
Ostrich
Ostric
eggs:129
h
pcs

Duck
eggs
Turkey
eggs
2772

Dimension
Power
Quail and Voltage Consumpti (length*width*hei
Goos
ght)
other
on
e
(Meter)
birds
eggs
eggs
1584

Ostrich eggs holding Capacity:

220V
50HZ

200W

1.8*0.85*2

129PCS

Ostrich incubator characteristics:


1. Dual energy source: Electricity or coal;
2. Fully automatic in temperature and humidity control, automatically
alarm when parameters going abnormal, automatic in eggs turning;
3. Dual-purpose, suitable for both incubation and hatching;
Ostrich incubation technique:

Ostrich incubation period(time), incubation temperature, humidity, and


transferring to hatcher date
Incubation period 42 days (Generally)
Incubation
temperature

97-98 F(36.1-36.7C)

Incubation
humidity

20-40% RH

Transfer to hatcher th
40 day(reference only)
date
Hatcher condition (96.8-98.0F36.0-36.7)
Note: Tips of Incubator use are attached as Annexure-2
INCREDIBLE FEED TO WEIGHT GAIN RATIO:
Farmed animals such as cattle and swine eat steroid-, antibiotic- and
hormone-laced feed and they eat an incredible amount of it. Cattle and swine
can eat in excess of 20:1 in their feed-to-weight ratio. This means that they
have to eat 20 pounds of feed to add 1 pound of weight.
The overall feed-to-weight ratio gain of an ostrich is 2:1 during the first few
months of their lives and this climbs to only 3.5:1 during their normal
development at 9 months or so. The benefits to you are considerable: less
maintenance, less feed and of course less animal waste! It is indeed the
future animal. The overall feed to weight gain ratio of cattle is 7:1 and that
of sheep is 5:1.

Slaughter Birds
Slaughter Age Days
(1)

Low
Low
Productio Production
n

Medium
Production

High
Production

365-425

425-485

300-365

180-300

85-120

85-130

90-120

90-125

Feed Consumption
kilos (2)

650-785

785-925

470-620

230-435

Feed Conversion (3)

5.5:1 9:1

6:1 - 11:1

3.9:1 7:1

2:1 3.5:1

Live weight

Nutrition:
Ostrich are browsers and not grazers. They require rations of high nutrient
value with high levels of vitamins and minerals supplemented in the rations
to optimize health and maximize their production potential. The following
table lists the rations required at the different stages of production.
Ration

Production Requirement

Breeders Off Season Replenishment of depleted nutrient reserves


Build condition for the new breeder season.
Breeders in Season Good Egg production,
Adequate Nutrient Transfer to ensure strong, healthy chicks at
hatch
Baby Chicks 0- 60
days

Smooth transfer from Yolk Sac Absorption to External Feed


Intake

Grower Birds

Optimum Growth Rates


Optimum Feed Conversion
Excellent Muscle Growth-Meat and Skin Quality (Slaughter
birds)
Good Reproductive Organ Development (future breeders)
Continued Reproductive Organ Development
Early Puberty

Pre-Breeders

The ability to achieve optimum production is dependent on the production


design of rations fed and management standards. When developing budget
production costs and revenue, it is essential to know the production potential
of the rations used as these have a very significant impact on farm output
and overall profitability. To put it simplistically rations can be split into 3
sections as defined below.
Feeding Rates and Consumption:
Ostrich breeders require 1.8kgs food as dry matter, this equates to 2.1kgs
per bird on dry food as fed basis. When grazing or silage form part of the
rations, then it is essential to ensure that sufficient dry matter is consumed
to maintain the full balance of the feed.
The following tables illustrate the food consumption based on 90% Dry
Matter as fed basis and assuming high production rations. Consumption can
increase by as much as 30% when rations are nutrient deficient.

Slaughter Bird Age

Ration

Kilos

1 - 60 Days
61 - 140 Days
141 - 280 Days
281 - 365 Days

Starter
Grower
Grower
Grower

25
107
291
192

Breeders
Breeder
Maintenance
TOTAL per
annum

Day
s
252
113
365

Daily
Amount
2.1kgs
2.1kgs

No.
Birds
2 (Pair)
2 (pair)

Total
Kilos
1058
475
1533

No.
Birds
3 (Trio)
3 (Trio)

Total
Kilos
1588
712
2300

Note that feed consumption on low production rations is generally greater than medium and high production
rations.

Details of Suppliers of Raw Materials


Ostrich Chicks and their feed can be imported as well as purchased from
local supplier Pakistan Ostrich Company. Pakistan Ostrich Company with its
head office in Karachi is currently the only supplier of Ostrich Eggs, Chicks
and feed. Ostrich Feed can also be produced as Ostrich often eat fresh fodder
and hay. Ostrich feed can also be purchased from the local market.

7. Organizational Plan
i. Form of ownership (Single owner/partnership or Pvt Ltd Co)
Skies Ostrich farm is a partnership of three persons who will equally invest
and would have equal share in profit and loss of the business. All partners
will invest their time and efforts for the development, improvement and
success of business. However responsibilities would be clearly defined and
allocated for smooth running of business.
ii. Identification of Partners or Principal shareholders and their
respective Authorities
Since all three partners have equal share in business so they have equal
power of voting. However one managing partner would be selected and
would be authorized to take decisions regarding matters of Skies ostrich
farms.
iii. Middle Level Management
Our middle level management will comprise on Marketing Manger,
Purchasers/Delivery boy and Accountant.
Marketing Manger:
He/She will be responsible to implement the sales and Marketing plan.
He/She will visit to potential customers in our target market and persuade
them to buy Ostrich meat. He/She will also be responsible to achieve the
sales targets as set in Marketing Plan. He/She will also be responsible for
forecasting the demand and coordinating with the Directors to adjust the
production levels accordingly.
Purchaser/Delivery Boy:
He will be responsible to carry out both purchasing and as well as delivery
the processed meat to customers who would place order. His duties will
mainly be related with field work. He would also be responsible for collection
of payment against delivered orders.
Accountant:
He/She would be responsible for maintaining and compilation of financial
transactions record.

iv. Formal Design of Organization


Organizational Structure:
Organizational structure of our firm would be as suggested in the
Organizational Chart attached as Annexure 4.
1. **** Alam: He has over 5 years experience in sales and marketing of
industrial machinery and would contribute in devising sales strategies.
His knowledge of market and experience to create new product
awareness quickly would be vital for the success of this project.
2. **** Chaudhary: She is working in a multinational company and can
contribute through her contacts for promotion awareness among
people to eat healthier ostrich meat instead of beef or mutton. She is
also a student of MBA in project management and would contribute
also contribute through her project management knowledge.
3. **** **** Sultani: He is student of MBA in project management and has
good work experience in administration field. He has also experience
of working in HR department. His family background as a farmer is also
added advantage for our business.

7.Assessment of Risk
i. S.W.O.T Analysis
Strengths
Increasing supply and demand gap for meat in Pakistan
Potential for high production levels of birds utilizing available land
Potential for self fodder/hay production
Fast growth of breeder birds
High weight gain ration of Ostrich compared with other animals
A combination knowledge and experience of owners spreading on
Engineering, Administration and Human Resource
Availability of infrastructure for production and access to market
New product with virtually no competition to start with
Weaknesses
Lack of consumer awareness regarding Ostrich meats
Lack of scientific research in Pakistan so far on Ostriches
Un-developed market in terms of Ostrich meat
Product Image to be developed yet
Lack of Ostrich farming experience and training
Opportunities
New market with virtually no competition at the moment
No farm operating in our target market region so far
Mass production will make prices below beef and mutton
Increasing demand of meat with decreasing supply
Increasing meat prices in the market
Opportunity to capitalize on broadening consumer tastes
Threats
Threat of new entrants in the market
Risk of supply exceeding demand if markets not developed successfully

ii. Contingency Plans


Our strategy is to target top class hotels/restaurants within Rawalpindi and
Islamabad region for our first year of production. In second year of sales well
establish our own restaurant which would be located in Food Street at
Rawalpindi Cricket Stadium. Well sell cooked/un-cooked ostrich meat at this
restaurant. Its location would be important for success as hundreds of food
lovers visit this place daily to fulfill their quest for restaurant food. By selling
cooked food we would be able to earn additional profit compared with uncooked meat.
Due to unexpected matters if we are unable to maintain a sufficient market
in Pakistan then Export option is also available as there is a well developed
ostrich meat and leather market in Europe and Africa and as well as in Arab
countries.

8.Financial Plan
I. Sources and Applications of funds (First Year)
Total capital equaling Rs. 16449200/- is required for this project. This amount is
totally invested by the owners with equal share. No bank loans are being
taken due to very high rate of interest.

II. Break Even Analyses


Fixed Cost =

5444320

Selling Price

400

Variable Cost

200

BEP

Fixed Costs / (selling price - variable costs per unit)

BEP

7331320/ (400-200)

BEP

27222

Kg Ostrich meat

III. Pay Back Period


Pay Back Period: =

Total Investment/Average Net Profit

16449200

/ 11220513.52

1.46599351

Years

IV. Proforma Income Statement for (First Three Years)


Attached as Annexure-6

V. Proforma Cash Flow Projections ( First Three Years)


Attached as Annexure-7

VI. Proforma Balance Sheet (First Three Years)


Attached as Annexure-8

Conclusion
The environmental benefits, the excellent feed-to-weight ratio gains
and the breeding proliferation of ostriches make commercial ostrich
farming worthy of investigation.
We also know that ostrich handling after 4 - 5 months is very low
and a good farm manager can easily take care of a farm of 10
breeding ostriches and hundreds of offspring.
From a consumer and marketing point of view, people are eating a
much healthier diet and are turning to ostrich meat as a
beef/mutton alternative. Production of low fat and low cholesterol
meat will allow consumers to have energy protein with out fear of
heart and other health problems. The demand for luxurious and
easily recognized ostrich leather continues. The cosmetic Industry
continues its never ending search for eternal youth and exotic
ostrich oil is beginning to receive its long overdue recognition. And,
of course, ostrich feathers are a permanent fixture in the world's
carnivals, Mardi Grass and festivals everywhere. After the success
of poultry industry during last two decades ostrich farming can open
new vistas for development in Pakistan, Very soon we can be the
world leader in ostrich farming.
In short, Farming ostriches can certainly be financially rewarding.

You might also like