BRENDA POULTRY ENTERPRISE

P. O. Box 60194
DAR ES SALAAM

POULTRY DEVELOPMENT PROJECT

JANUARY, 2010

Prepared By:

Brenda A. Kilale
P. O. Box 60194,
Dar es Salaam
 BRENDA POULTRY ENTERPRISE

Contents
PROJECT DESCRIPTION ................................................................................................. 4
GENERAL INFORMATION ......................................................................................... 4
PROJECT OBJECTIVE ................................................................................................. 4
PROJECT SCOPE .......................................................................................................... 4
THE PRODUCTS ........................................................................................................... 4
PRODUCTION ................................................................................................................... 4
TECHINICAL ASPECTS .............................................................................................. 5
SALES POTENTIAL ......................................................................................................... 5
MANPOWER AND MANAGEMENT .............................................................................. 5
Manpower ....................................................................................................................... 5
Organization .................................................................................................................... 6
INVESTMENT AND FINANCING .................................................................................. 6
MARKET AND MARKETING ASPECTS ....................................................................... 7
Demand and Supply: ....................................................................................................... 7
Competition: ................................................................................................................... 7
Business Promotion: ....................................................................................................... 7
Product Distribution ........................................................................................................ 7
Product Prices: ................................................................................................................ 7
FINANCIAL PERFORMAMCE PROJECTION ............................................................... 8
PROJECT IMPLEMENTATION ....................................................................................... 8
SOCIAL AND ECONOMIC BENEFITS .......................................................................... 9
SUSTAINABILITY QUESTION ....................................................................................... 9
CONCLUSION AND RECOMMENDATION .................................................................. 9

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 BRENDA POULTRY ENTERPRISE

1. Date 02.01.2010

2. Name of Applicant: Brenda Poultry Enterprise

3. Address P.O.Box 60194, Dar es Salaam

4. Phone: L/line 022 2647126,

Cell 0655 82 77 77

5. Contact Person Brenda A. Kilale

6. Type of Project Poultry Keeping

7. Project Location Visiga Village, Kibaha, Coast

Region

8. Management Proprietorship

9. Main Banker CRDB Bank

10 Commitment with Bank NIL

11. Capital requirement Tshs 57.65 million

12 Project Cost Tshs 57.65 million

13. Project Duration 5 Years (2010-2015)

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PROJECT DESCRIPTION

GENERAL INFORMATION
This feasibility study has been initiated by Brenda Poultry Enterprise of Dar es Salaam.
The study is based upon the following important considerations:
Experience in poultry keeping,
Veterinary requirements
Product Market Information
Local experience in poultry keeping operations

PROJECT OBJECTIVE
The intention of the owner is to obtain seed capital which will enable the establishment of
poultry business so as to earn substantial incomes. The project will involve the purchase
of foundation stock of day old Chicks for the production of Layers and Broilers on the
one hand and for the improvement of facility or ban/shed for keeping Poultry.

PROJECT SCOPE
The project is envisaged to have a capacity of keeping 1200 day old chicks for broilers
and 1500 day old chicks for Layers respectively.

THE PRODUCTS
The main products of the project will be Broilers and Eggs.

PRODUCTION
The enterprise will start with 4 batches of day old chicks- broilers 1200 and 1500 layers
during the first year. Anticipated chick mortality rate 10% for chicks, 5% for growers and
2% for layers Note Tables Production 1 and 111.

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TECHINICAL ASPECTS
Location: The project will be located at Visiga Village Mlandizi Ward –Kibaha District,
Coast Region. The village is 60 km from Dar es Salaam
Utilities: The project has an access to adequate water supply pipes linking Dar es Salaam
City and Mlandizi Water Supply Station. The area is also potential for development of
spring wells. Three Phase Electric Power supply line is also within range of connection.
Road: The Dar es Salaam to Morogoro tarmac road is 200 meters from the project site
which will facilitate easy connection to markets.
Motor Vehicle: A one ton 4WD Pickup will be purchased for efficient delivery service.

SALES POTENTIAL
Sales Revenues forecast for the project is presented in Table below:
Products which will be sold include Broilers and Eggs

YEAR T-SHS‟000‟
1 47470
2 47470
3 61308
4 61308

MANPOWER AND MANAGEMENT

Manpower
Total work force required for the project during operations is 7 which will
include the following:
Poultry Farm Manager 1
Marketing Assistant 1
Veterinary and General -
Upkeep Poultry Assistants 2

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Security Guards 2
Accounts Clerk 1

Organization
The enterprise day to day operations and achievements will be the responsibility of
Poultry Manager who will be assisted by:

Veterinary and General Upkeep Poultry Assistants: Who are responsible for poultry
health and feeding etc.

Marketing and Operations Assistant: will be responsible for sales and marketing
activities including market planning and development

Accounts Clerk: Will be responsible for book-keeping and related financial records
including personnel issues.

INVESTMENT AND FINANCING

The main assumptions in the estimates of investment and financial projections of the
proposed project are stated as follows:
Prices and costs are held constant at 2009 levels on the assumption that prices will
be adjusted proportionately to overall changes in costs
The project period is 4 years

Total initial investments 57.65 million of which:

Foundation stock for layers and broilers Tshs 7.2
Fixed assets Tshs 44.7 Million Note App. 5
Working Capital: Tshs 5.8 Million. Note App. 6
Financing of the same will be as follows
Own Equity Tshs 200,000/=

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Loan (Seed) Tshs 57,450,000/=

Additional Financing will be effected in year 5 for a one ton Pick up 4WD and
Foundation Stock with a total of Tshs 22.2million. Note Appendix 5

MARKET AND MARKETING ASPECTS

Demand and Supply: The demand for broilers and eggs in Dar es Salaam is high. The
production of then same is lower than the demand hence there is a reliable market for the
products.

Competition: There are a reasonable number of market players in this business however
since demand exceeds supply, new entrants will not pose threat to business profitability.
High quality production and provision of competitive sale prices will sustain the market.

Business Promotion: The enterprise will engage in business promotion in order to

capture wider market share. Production of promotional materials such brochures,
electronic and print media advertisement will provide reliable markets for increased
earnings.

Product Distribution: For efficient product delivery, the enterprise need a 1 ton pick
up for the distribution of the products to customers

Product Prices: The market will freely determine product prices however high quality
production and reduction of overhead costs will enable the enterprise to penetrate the
market through competitive pricing.

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FINANCIAL PERFORMAMCE PROJECTION

Assuming Interest on Term Loan is 18% and Tax on Revenues 30%. The project will
generate profits throughout its operative period as shown in Appendix 4 below.
Cumulative Net Profits will increase from Tshs 7.54 Millionin Year 1 to Tshs 30.14
Million in Year 4. Note Appendix 4

PROJECT IMPLEMENTATION
It is envisaged that the project will be completed in 15 weeks. Activities to be carried out
during the period to commissioning include
Loan Mobilization 4weeks
Land possession 4weeks
Recruitment of workers 3weeks
Construction of ban/shed for poultry keeping 2weeks
Procurement of foundation stock day old chicks/feeds 1week
Commissioning 1week

The owner of the project will be responsible for overseeing smooth implementation of
the project being assisted by enterprise personnel. A contractor will be in place for
project execution. Monitoring of project activities and costs will be effected by project
staff in collaboration with the contractor. Note Project Implementation Schedule below.

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Project Implementation Schedule

S/N ACTIVITY/WEEKS 1 2 3 4
1 Loan Mobilization x x x x
2 Land Possession x x x x
3 Recruitment of x x x
workers
4 Construction x x x
Activities
5 Procurement of x
Foundation Stock
6 Commissioning x

SOCIAL AND ECONOMIC BENEFITS

The project will create:
Employment
Government Revenues in the form of Taxes

SUSTAINABILITY QUESTION
The project will purchase an egg hachuring facility to produce foundation stock of day
old chicks, and a milling and mixer machine to produce poultry feeds instead of
purchasing from other suppliers etc

CONCLUSION AND RECOMMENDATION

In view of the fore going the project is considered financially, economically viable and
should be assisted with financing for development.

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APPENDICES

PRODUCTION 1
FLOCK PROJECTIONS-BROILERS

DESCRIPTION 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st
/BATCH
YEAR 1 1 1 1 2 2 2 2 3
Day old Chicks 1200 1200 1200 1200 1200 1200 1200 1200 1200
Chicks 120 120 120 120 120 120 120 120 120
Mortality 10%
Broilers for 1080 1080 1080 1080 1080 1080 1080 1080 1080
Sale(Production)
Sales@ 4000/= 4320000 4320000 4320000 4320000 4320000 4320000 4320000 4320000 4320000

PROJECTION SCHEDULE (111)

FLOCK PROJECTION LAYERS

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DESCRIPTION 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st
/BATCH
YEAR 1 1 1 1 2 2 2 2 3
Day old Chicks 1500 1500 1500 1500 1500 1500 1500 1500 1500
Chicks Mortality 150 150 150 150 150 150 150 150 150
10%
Growers 1350 1350 1350 1350 1350 1350 1350 1350 1350
Growing 67 67 67 67 67 67 67 67 67
Mortality5%
Layers 1283 1283 1283 1283 1283 1283 1283 1283 1283
Laying 25 25 25 25 25 25 25 25 25
Mortality2%
Laying Flock 1258 1258 1258 1258 1258 1258 1258 1258 1258
Egg Production 181152 181152 181152 181152 181152 181152 181152 181152 181152
80%
Egg 30,190 30190 30190 30190 30190 30190 30190 30190 30190
Sales@Tray5000
=6038
Culls Sales - - 2516 2516 2516 2516 2516 2516 2516
Cull - - 13838 13838 13838 13838 13838 13838 13838
Sales@5500
TOTAL SALES 30,190 30190 44028 44028 44028 44028 44028 44028 44028

APPENDIX 1
BRENDA POULTRY PROJECT

PROJECTED OPERATING OVERHEAD

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DESCRIPTION/YEAR PER 0 1 2 3 4 5
MONTH
Poultry Feeds 550 - 6600 6600 6600 6600 6600
Medicines/Veterinary10% 55 - 660 660 660 660 660
of feeds
Water and Electricity 100 - 1200 1200 1200 1200 1200
Rusdenanour effect 1200 - 14400 14400 14400 14400 14400
TOTAL 1905 - 22860 22860 22860 22860 22860

APPENDIX 2
PROJECTED SALARIES AND WAGES

DESIGNATION NO PER 0 1 2 3 4 5
WORKERS MONTH
Poultry Manager 1 300 3600 3600 3600 3600 3600
Poultry 2 160 1920 1920 1920 2120 2120
Attendants
Marketing 1 150 1800 1800 1800 1800 1800
Attendant
Accounts Clerk 1 120 1440 1440 1440 1440 1440
Security Guards 2 160 1920 1920 1920 2120 2120
Social Benefits 91 192 192 192 192 192
10%
TOTAL 997 11959 11959 11959 11959 11959

APPENDIX 3
PROJECTED SALES IN “000”YEAR 1-5
DESCRIPTION/YEAR 1 2 3 4 5
Proceeds from Broilers 17280 17280 17280 17280 17280

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Proceeds from Layers 30,190 30190 44028 44028 44028

TOTAL 47470 47470 61308 61308 61308

APPENDIX 4: PROJECTED INCOME/LOSS STATEMENT (YEAR1-4)

DESCRIPTION/YEAR 0 1 2 3 4 5
CAPACITY 80% 80% 80% 80% 80%
UTILIZATION
Sales 47470 47470 61038 61308 61308
Less: Variable Costs 22860 22860 22860 22860 22860
Contribution Margin 24610 24610 38178 38178 38178
OPERATING
OVERHEAD
Fixed and Semi fixed
overheads 11959 11959 11959 11959 11959
Capital Costs 2250 2250 2250 2250 2250
TOTAL 13845 13845 13845 13845 13845

Net Profit Before Tax 10765 10765 10765 10765 10765

TAX 30% 3230 3230 3230 3230 3230
Net Profit After Tax 7536 7536 7536 7536 7536
Cumulative Net Profits 7536 15071 22607 30143 30143

APPENDIX 5 ENTERPRISE INVESTMENT COST IN TSHS „000‟

PERIOD 0 1 2 3 4 5
Poultry water tanks 10,000
Furniture/fittings 400

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Foundation 7,200 7200

stock,layers,broilers
Electrical. 3,000
Installation/Water
Preoperational 50
Expenses
Land 10,000
EQUIPMENT 2,000
Pickup 15,000 15000
Water pump 10,000
TOTAL 57650 22200

APPENDIX 6 :WORKING CAPITAL REQUIREMENT IN TSHS‟000‟

Poultry feeds -6 3300 3300 3400 3500 3500

months

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Medicines 1 month 55 55 60 60 60
Fuel -1monht 1200 1200 1300 1300 1300
Salaries 1 month 336 336 346 346 346
Water/elcet- 600 600 700 700 700
6months
Micellous-6 months 300 300 310 310 310
Total 5791 5791 6116 6116 6116
CHANGE IN 5791 - 325 - -
WORKING
CAPITAL

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