Broiler Farm Rs. 1.61 Million

Prime Minister's Youth Business Loan
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 REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE
Punjab Sindh Khyber Pakhtunkhwa Balochistan
3rd Floor, Building No. 3, 5th Floor, Bahria Ground Floor Bungalow No. 15-A
Aiwan-e-Iqbal Complex, Complex II, M.T. Khan Road, State Life Building Chaman Housing Scheme
Egerton Road Lahore, Karachi. The Mall, Peshawar. Airport Road, Quetta.
Tel: (042) 111-111-456 Tel: (021) 111-111-456 Tel: (091) 111-111-456 Tel: (081) 2831623, 2831702
Fax: (042) 36304926-7 Fax: (021) 35610572 Fax: (091) 5286908 Fax: (081) 2831922
helpdesk.punjab@smeda.org.pk helpdesk-khi@smeda.org.pk helpdesk-pew@smeda.org.pk helpdesk-qta@smeda.org.pk
Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost
May, 2014
Pre-Feasibility Study Broiler Farm (Rs.1.61 Million)
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 ................................................................................................................................. 12
13. CONTACTS OF SUPPLIERS AND EXPERTS ............................................................................ 13
14. ANNEXURE ...................................................................................................................................... 14
14.1. INCOME STATEMENT ................................................................................................................... 14
14.2. BALANCE SHEET ............................................................................................................................ 15
14.3. CASH FLOW STATEMENT............................................................................................................. 16
14.4. USEFUL PROJECT MANAGEMENT TIPS..................................................................................... 17
14.5. USEFUL LINKS ................................................................................................................................ 18
15. KEY ASSUMPTIONS ...................................................................................................................... 19
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 1
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
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 it’s 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.
4. INTRODUCTION TO SCHEME
Prime Minister’s ‘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 bythe
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, GilgitBaltistan, 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 8,000 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. 1.61 million with a
staff of 03 persons. This project is proposed to be started on 90% debt and 10%
equity basis. The project’s Internal Rate of Return (IRR), Net Present Value
(NPV) and payback period are 40%, 6.55 million and 3.84 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
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 flock’s 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
8,000 birds. Utilizing the 100 % capacity in all the six flocks per year, the total
48,000 birds may be reared per annum at the same farm. Since, mortality in flock
should not exceed 8%, therefore, maximum broiler birds produced would be
45,043 per annum (including 2% extra chicks provided by hatchery). 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. Sub-
urban 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 market-
street poultry shops. Few poultry meat processing plants process raw poultry
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 consumer’s demand and supply situation.
11. BROILER PRODUCTION PROCESS

• Broiler farming must begin with a clean and sanitized shed. 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 20–22 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 an essential part of
broiler 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.
• 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.
• 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 Disease Vaccination Procedure

Infectious Bronchitis Aerial spray or eye
1 day IB-Vaccine
Disease (IBD) drops
5 days Newcastle Disease (ND) ND-Vaccine (Lasota) Eye drops
Infectious Bursal IBD Vaccine
8 days Eye drops
Disease (IBD) (Gumboro)
Hydro Pericardium
17-18 days HPS- Hydro Vaccine Sub-cut injection
Disease
Infectious Bursal IBD Vaccine
21-22 days In drinking water
Disease (IBD) (Gumboro)
In drinking water
25-26 days IBD+ND IBD+ND Vaccines
12. PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the commercial
viability of broiler farm (8,000 birds) under the ‘Prime Minister’s 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) 40%
Payback Period (yrs) 3.84
Net Present Value (NPV) Rs. 6,549,962
12.2. PROJECT FINANCING
Following table provides details of the equity required and variables related to
bank loan;
Table 3: Project Financing
Description Details
Total Equity (10%) Rs. 160,745
Bank Loan (90%) Rs. 1,446,704
Markup to the Borrower (%age/annum) 8%
Tenure of the Loan (Years) 8
Grace Period (Year) 1
12.3. 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 155,265
Furniture & fixtures 5,000
Office equipment 1,000
Pre-operating cost 22,647
Total Capital Cost 183,912
Raw material inventory (1.5 months) 1,282,188
Upfront building rent (3 months) 51,268
Cash in hand 90,081
Initial Working Capital 1,423,537
Total Project Cost 1,607,449
12.4. SPACE REQUIREMENT
Following table shows calculations for project space requirement;

Table 5: Space Requirement
Description Space Requirement (Sq.ft)
Management building 100
Shed space 8,160
Feed store 100
Room for workers 100
Pavement/ Boundary walls 85
Total Area 8,545
The rental cost is calculated at approximately Rs. 17,000 per month.
12.5. MACHINERY AND EQUIPMENT
Following table provides list of machinery and equipment required for broiler farm
in open shed conventional housing system;
Table 6: List of Machinery and Equipment
Capacity *Units Cost *Amount

Description
(Birds / unit) (No.) (Rs. / unit) (Rs.)
Coal Brooder 2,500 3.3 3,500 11,424
Chick guard 200 41 150 6,120
Small waterers 80 102 80 8,160
Small feeding trays 35 233 60 13,989
Large waterers 85 96 300 28,800
Large round feeders 35 233 260 60,617
Buckets 4 500 2,000
Manual balance 1 4,000 4,000
Exhaust Fans 4 2,000 8,000
Miscellaneous Lump sum 5,000 5,000
Installation (5%) 7,156
Total Machinery &
155,265
Equipment
*Figures rounded off to nearest decimal.
12.6. OFFICE EQUIPMENT&FURNITURE
Table 7: Office Equipment& Furniture
Description Quantity Cost (Rs.) Amount (Rs.)

Telephone 1 1,000 1,000
Furniture and fixture Lump sum 5,000 5,000
Total 6,000
12.7. RAW MATERIAL REQUIREMENTS
Following table shows raw material requirement for the proposed project;
Table 8: Cost of Material
**Amount in Year
Total Rate
Description Unit 1
units (Rs./ Unit)
(Rs.)
*Day Old Chicks (DOC) 1,680,000
Per DOC 48,000 35
Total feed required per
Per Bird *47,002 178.2 8,375,756
birds @2.2 FCR
(Incl. 2% extra DOCs)

Vaccination/
medication/disinfection Per Bird *47,002 8 376,016
(Incl. 2% extra DOCs)
Direct Electricity Cost Per bird *47,002 2.25 105,755
Litter (Saw dust or rice
Per Flock 6 8,000 48,000
husk)
Spray Cost Per Flock 6 4,896 29,376
Total Cost 10,614,903
*Two percent extra chicks provided by DOC supplier to cover the transportation mortality. There would also be
mortality @ 8% with the assumption that 4% would die at brooding stage and remaining 4% at rearing stage,
hence total birds consuming feed and vaccination / medication would be 47,002 per annum.
** Figures rounded off to nearest decimal.
12.8. HUMAN RESOURCE REQUIREMENT
Table 9: Human Resource Requirement

Monthly Salary Annual Salary
Description No.
(Rs.) (Rs.)
Owner / Farm manager 1 20,000 240,000
Farm Labor 2 12,000 288,000
Total Staff 3 528,000
Owner / farm manager would take care of the overall business operations
whereas two experienced and skilled workers would be needed to look after the
general poultry husbandry operations at the farm. The salaries are estimated to
increase at 10% annually.
12.9. REVENUE GENERATION
Table 10: Revenue Generation
Price / Production **Amount in

Description Unit
Unit (Rs.) in Year 1 Year 1 (Rs.)
Revenue from sale of Per 261 *45,043 11,756,275
broiler birds (1.8 - 2.0 bird
kg) after 6 weeks
Revenue from sale of Per 10 3,722.5 37,225
empty feed bags bag
Revenue from sale of Per 6 9,000 54,000
litter and droppings flock
Total Revenue 11,847,500
*Saleable birds after 8% mortality, ** Figures rounded off to nearest decimal.
12.10. 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. 2,000 per month.
The communication expense is assumed to be Rs. 6,000 per annum. Similarly,
the office expense including entertainment and janitorial services is Rs. 6,000 per
annum.
13. CONTACTS OF SUPPLIERS AND EXPERTS

Table 11: List of Suppliers and Consultants
Feed Suppliers DOC Suppliers

Supreme Feeds (Pvt.) Ltd. Big Bird Poultry Breeders (Pvt.) Ltd.
Head Office: 176-Shadman 1 Lahore. 2-A,Ahmed Block, New Garden Town
Ph: 042-37522104-7 Lahore
Ph: 042-35835373-4
Ghazi Brothers Hi-Tech Poultry Breeders (Pvt.) Ltd.
Ghazi House, D-35, KDA Scheme, No. 1, 1-A, Shadman Chowk Jail Road, Lahore
Miran Muhammad Shah Road, Karachi Ph: 042-37564503
Ph: 021-111250365
Asia Feed (Pvt.) Ltd. Islamabad Poultry Breeding Co.
359 Shamsabad Colony, Humayun Road D-98, Satellite Town, Murree Road
Multan. Rawalpindi.
Ph: 061-6224414 Ph: 051-4427139
Fast Poultry Feeds Jadeed Farms (Pvt.) Ltd.
12-KM Near Nai Sabzi Mandi Jhang 6- Allied Commercial Plaza, Murree Road,
Road, Faisalabad. ChandniChowk Rawalpindi.
Ph: 041-2577171-2 Ph: 051-4851280-84
Rustum Feeds Sadiq Poultry Pvt. Ltd.
Flat No.6, 1st Floor, United Center SB Plaza, 48-C, Satellite Town, Chandni
Shamsabad, Murree Road, Rawalpindi Chowk, Rawalpindi
Ph: 051-4455362 Ph: 051-111-505-050
Machinery & Equipment Suppliers Consultants
Biovet (Pvt.) Ltd. Prof. Dr. M. Akram
97-A, Jail Road Lahore Department of Poultry Production,
Ph: 042-37534508 Uni. Of Veterinary and Animal Sciences
(UVAS),Lahore
Ph: 042-99211461
Eastern Veterinary Services Dr. Abdul Rehman
4- C Chouburji Center, Near Venus Director, Poultry Research Institute,
Cinema, Multan Road, Lahore. Shamsabad, Murree Road, Rawalpindi
Ph: 042-37417649-50 Ph: 051-9290163-5
Dr. Fawwad Ahmad
Faculty of Animal Husbandry, University of
Agriculture, Faisalabad
Ph: 041-9920161-70
14. ANNEXURE
14.1. INCOME STATEMENT
Statement Summaries Broiler Farm

Income Statement
Rs. in actuals
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenue 11,847,500 13,269,201 14,861,505 16,644,885 18,642,271 20,879,344 23,384,865 26,191,049 29,333,975 32,854,052
Cost of goods sold 11,142,828 12,358,441 13,706,762 15,202,288 16,861,099 18,701,036 20,741,888 23,005,607 25,516,546 28,301,721
Gross Profit 704,673 910,760 1,154,743 1,442,598 1,781,172 2,178,308 2,642,977 3,185,442 3,817,429 4,552,331
General administration & selling expenses

Utilities expense 24,000 26,400 29,040 31,944 35,138 38,652 42,517 46,769 51,446 56,591
Professional fees (legal, audit, etc.) - - - - - - - - - -
Depreciation expense 16,127 16,127 16,127 16,127 16,127 16,127 16,127 16,127 16,127 16,127
Amortization expense 4,529 4,529 4,529 4,529 4,529 - - - - -
Mortality - - - - - - - - - -
Subtotal 261,726 285,833 312,351 341,521 373,607 404,373 443,197 485,905 532,882 584,558
Operating Income 442,947 624,926 842,392 1,101,077 1,407,565 1,773,935 2,199,780 2,699,538 3,284,547 3,967,773
Earnings Before Interest & Taxes 442,947 624,926 842,392 1,101,077 1,407,565 1,773,935 2,199,780 2,699,538 3,284,547 3,967,773
Interest expense 119,255 110,988 97,722 83,362 67,819 50,995 32,783 13,071 - -
Earnings Before Tax 323,692 513,938 744,670 1,017,715 1,339,746 1,722,940 2,166,997 2,686,467 3,284,547 3,967,773
Tax - 11,394 34,467 75,157 123,462 192,088 280,899 394,117 543,636 714,443
NET PROFIT/(LOSS) AFTER TAX 323,692 502,544 710,203 942,557 1,216,284 1,530,852 1,886,098 2,292,351 2,740,910 3,253,330
Balance brought forward 323,692 826,236 1,536,439 2,478,996 3,695,280 5,226,133 7,112,230 9,404,581 12,145,491
Total profit available for appropriation 323,692 826,236 1,536,439 2,478,996 3,695,280 5,226,133 7,112,230 9,404,581 12,145,491 15,398,821
Balance carried forward 323,692 826,236 1,536,439 2,478,996 3,695,280 5,226,133 7,112,230 9,404,581 12,145,491 15,398,821
14.2. BALANCE SHEET

Balance Sheet
Rs . in actuals
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
As s ets
Current assets
Cas h & Bank 356,321 471,494 554,659 771,337 1,131,772 1,659,851 2,370,714 3,283,912 4,419,338 6,061,724 15,559,566
Accounts receivable - - - - - - - - - - -
Raw material inventory 1,015,948 1,239,997 1,513,460 1,847,238 2,254,635 2,751,889 3,358,822 4,099,627 5,003,838 6,107,499 -
Pre-paid building rent 51,268 56,394 62,034 68,237 75,061 82,567 90,824 99,906 109,897 120,886 -
Total Current As s ets 1,423,537 1,767,885 2,130,153 2,686,812 3,461,468 4,494,306 5,820,359 7,483,446 9,533,073 12,290,110 15,559,566
Fixed assets
Machinery & equipment 155,265 139,739 124,212 108,686 93,159 77,633 62,106 46,580 31,053 15,527 -
Furniture & fixtures 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 -
Office equipment 1,000 900 800 700 600 500 400 300 200 100 -
Total Fixed As s ets 161,265 145,139 129,012 112,886 96,759 80,633 64,506 48,380 32,253 16,127 -
Intangible assets
Pre-operation cos ts 22,647 18,117 13,588 9,059 4,529 - - - - - -
Total Intangible As s ets 22,647 18,117 13,588 9,059 4,529 - - - - - -
TOTAL ASSETS 1,607,449 1,931,141 2,272,753 2,808,757 3,562,756 4,574,939 5,884,865 7,531,825 9,565,326 12,306,236 15,559,566
Liabilities & Shareholders ' Equity

Current liabilities
Accounts payable - - - - - - - - - - -
Total Current Liabilities - - - - - - - - - - -
Other liabilities
Long term debt 1,446,704 1,446,704 1,285,772 1,111,573 923,015 718,913 497,987 258,850 - - -
Total Long Term Liabilities 1,446,704 1,446,704 1,285,772 1,111,573 923,015 718,913 497,987 258,850 - - -
Shareholders' equity
Paid-up capital 160,745 160,745 160,745 160,745 160,745 160,745 160,745 160,745 160,745 160,745 160,745
Retained earnings - 323,692 826,236 1,536,439 2,478,996 3,695,280 5,226,133 7,112,230 9,404,581 12,145,491 15,398,821
Total Equity 160,745 484,437 986,981 1,697,184 2,639,741 3,856,025 5,386,878 7,272,975 9,565,326 12,306,236 15,559,566
TOTAL CAPITAL AND LIABILITI 1,607,449 1,931,141 2,272,753 2,808,757 3,562,756 4,574,939 5,884,865 7,531,825 9,565,326 12,306,236 15,559,566
- - - - - - - - - -
Note: Total assets value will differ from project cost due to first installment of leases paid at the start of year 0
- - - - - - - - - - -
14.3. CASH FLOW STATEMENT

- - - - - - - - - - -

Cash Flow Statement
Rs. in actuals
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Operating activities
Net profit - 323,692 502,544 710,203 942,557 1,216,284 1,530,852 1,886,098 2,292,351 2,740,910 3,253,330
Add: depreciation expense - 16,127 16,127 16,127 16,127 16,127 16,127 16,127 16,127 16,127 16,127
amortization expense - 4,529 4,529 4,529 4,529 4,529 - - - - -
Accounts receivable - - - - - - - - - - -
Raw material inventory (1,015,948) (224,049) (273,463) (333,778) (407,396) (497,254) (606,933) (740,806) (904,210) (1,103,661) 6,107,499
Pre-paid building rent (51,268) (5,127) (5,639) (6,203) (6,824) (7,506) (8,257) (9,082) (9,991) (10,990) 120,886
Accounts payable - - - - - - - - - - -
Cash provided by operations (1,067,216) 115,172 244,097 390,877 548,993 732,180 931,789 1,152,336 1,394,276 1,642,386 9,497,842
Financing activities
Change in long term debt 1,446,704 - (160,933) (174,199) (188,558) (204,101) (220,926) (239,137) (258,850) - -
Issuance of shares 160,745 - - - - - - - - - -
Cash provided by / (used for) financ 1,607,449 - (160,933) (174,199) (188,558) (204,101) (220,926) (239,137) (258,850) - -
Investing activities
Capital expenditure (183,912) - - - - - - - - - -
Cash (used for) / provided by invest (183,912) - - - - - - - - - -
NET CASH 356,321 115,172 83,165 216,679 360,435 528,078 710,863 913,198 1,135,426 1,642,386 9,497,842
Cash balance brought forward 356,321 471,494 554,659 771,337 1,131,772 1,659,851 2,370,714 3,283,912 4,419,338 6,061,724
Cash available for appropriation 356,321 471,494 554,659 771,337 1,131,772 1,659,851 2,370,714 3,283,912 4,419,338 6,061,724 15,559,566
Cash carried forward 356,321 471,494 554,659 771,337 1,131,772 1,659,851 2,370,714 3,283,912 4,419,338 6,061,724 15,559,566
14.4. USEFUL PROJECT MANAGEMENT TIPS
Technology
• 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: Expert's help may be engaged for marketing of each batch
of animal.
• Ads & P.O.S. Promotion: Business promotion and dissemination through banners
and launch events is highly recommended. Product brochures from good quality
service providers.
• Sales & Distribution Network: Expert's advise and distribution agreements are
required.
• 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.
Human Resources
• 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.
• 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 Minister’s 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 GilgitBaltistan, 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, Shahra-
e-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. 051-
9203966, 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
• PirMehr Ali Shah Arid Agricultural University, Rawalpindi, www.uaar.edu.pk
• University College of Veterinary & Animal Sciences, Islamia University Bahawalpur
(IUB), www.iub.edu.pk
• University of Veterinary & Animal Sciences (UVAS), Out Fall Road, Lahore,
www.uvas.edu.pk
• BahauddinZakariya 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
15. KEY ASSUMPTIONS

Table 12: Production Assumptions
Production capacity utilization 100%
Maximum capacity utilization 100%
Number of birds per flock 8,000
Extra Chicks supplied by DOC supplier (2%) 160
Number of flocks per year 6
Mortality rate 8%
Mortality at Brooding Stage 4%
Mortality at Rearing Stage 4%
Annual production (birds) 48,000
Time required per flock (days) 42-45
Lag time between the flock (weeks) 2
Table 13: Revenue Assumptions

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

Day Old Chicks (DOCs) in Rs. 35
Feed Conversion Ratio (FCR) 2.20
Average feed requirement / bird / day (kg) 0.09
Cost of feed (in Rs. / kg) 45
Feed cost per bird (Rs.) 178.2
Cost of feed bag (Rs. per 50 Kgs Bag) 2,250
Vaccination cost per bird in Rs. 8
Litter cost per flock in Rs. 8,000
Spray cost per flock in Rs. 5,000

Broiler Farm Rs. 1.61 Million

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Broiler Farm Rs. 1.61 Million

Uploaded by

Copyright:

Available Formats

Prime Minister's Youth Business Loan

Small and Medium Enterprises Development Authority

2. PURPOSE OF THE DOCUMENT

6. BRIEF DESCRIPTION OF PROJECT & PRODUCT

8. INSTALLED & OPERATIONAL CAPACITIES

9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT

10. POTENTIAL TARGET MARKET

11. BROILER PRODUCTION PROCESS

• Special attention should be given to temperature and relative humidity

Age in Days Disease Vaccination Procedure

12. PROJECT COST SUMMARY

12.2. PROJECT FINANCING

12.3. PROJECT COST

Following requirements have been identified for operations of the proposed

Following table shows calculations for project space requirement;

12.5. MACHINERY AND EQUIPMENT

Table 6: List of Machinery and Equipment

Capacity *Units Cost *Amount

12.6. OFFICE EQUIPMENT&FURNITURE

Table 7: Office Equipment& Furniture

Description Quantity Cost (Rs.) Amount (Rs.)

(Incl. 2% extra DOCs)

12.8. HUMAN RESOURCE REQUIREMENT

Table 9: Human Resource Requirement

Table 10: Revenue Generation

Price / Production **Amount in

12.10. OTHER COSTS

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

13. CONTACTS OF SUPPLIERS AND EXPERTS

Feed Suppliers DOC Suppliers

14.1. INCOME STATEMENT

Statement Summaries Broiler Farm

General administration & selling expenses

14.2. BALANCE SHEET

Statement Summaries Broiler Farm

Liabilities & Shareholders ' Equity

14.3. CASH FLOW STATEMENT

Statement Summaries Broiler Farm

14.4. USEFUL PROJECT MANAGEMENT TIPS

14.5. USEFUL LINKS

• Prime Minister’s Office, www.pmo.gov.pk

• Poultry Research Institute (PRI), Rawalpindi, Tel: 051-9290162, 9290173,

15. KEY ASSUMPTIONS

Table 13: Revenue Assumptions

Table 14: Expense Assumptions

You might also like

Capacity Units Cost Amount