Healthy Food
Introduction I want to establish a poultry farm in the name of “Healthy Food” at Abdullahpur under P.D. Nandail, Dist-Mymenshingh. Total area of the project is 543 decimal value of which as prevailing market price is tk 80 lakh. In order to implement the project credit assistance of tk 891lakh from Bank as project loan and 45lakh as working capital should be required. A Krishi Khamar may establish consisting of 40000 Broiler Parent stock chicks for supplying of chicks and eggs to firm. So I think it is possible to implement as well as operate the project successfully. Moreover necessary technical man and skilled worker will be employed in due course to operate the project successfully. Summary of Business Plan Title of the Business Plan Location of the project
“Healthy Food” Abdullahpur P.S. Nandail, DistMymensingh Total area of the project 658 decimal of land Project component 40000 Broiler Parent stock Cost of the project & means of The project cost has been estimated finance tk 1485 lakhs. Civil cost tk 622 lakh. Machinery and equipment tk 575
Working capital Product mix and production capacity: • Day old chicks 1st year2nd year• Culled bird • Eggs • manure Raw material: • Feed • Medicine Profitability Forecast: • Sales revenue • Gross profit • Net profit • Gross profit to sales • Net profit to sales
The project Security Marketing aspect
lakh. Cost of Broiler parent stock tk 80 lakhs. To meet the cost the bank loan is to be taken 30 lakhs
No. of Broiler-2540160 No. of Broiler-4480000 32000 after every62 weeks 635040 and 1164800 no(unsuitable for hatching)
172 lakhs 24 lakhs 1st yeat
2nd year
65459 30959 18044 47 16
117944 64254 56780 57 48
3rd year(figure in 000) 114744 68984 59132 58 49
The project envisages for setting up of poultry hatchery farm in medium scale at Mymenshigh dist. There are 543 decimal of land. There are some land will be offered as colateral security if necessary There will be no marketing problem of the products of proposed projects
Conclusion
From the financial analysis it is evident that the project is technically feasible and financial sound and commercially viable from the economic point of view. So the project may be undertaken.
Description of Venture Product The products for this project have chosen are • • • •
Broiler Chicks Day old Chicks Culled Bird Eggs
Business Location The project located at Abdullahpur under P.S. Nandail dist. Mymenshigh covering area of 658 decimal. The land is in one place through if falls under in one Mouza. The Project side is adjacent to the project land enjoys all infrastructural facilities like communications, power and water from tubewell. Power connection at the site is available. The total cost of the project land has been estimated 81 lakh. The items of the project land have been given as under, Mouza: Abdullahpur P.S. Nandail, dist. Mymenshingh. JI no. 32
Plot no. CS 376 CS 393 CS 393 CS 427 CS 435
Khatian no. 416 DP 461
Area (decimal) 658
Total
658
Transportation facility to Mymenshingh is very easy for us as well as for customers, suppliers Marketing Aspect
Milk, egg and fish are important items kin our daily food staff. The supplies of these procedures are not sufficient to meet our national requirement. According to statistical year book of Bangladesh published by BBS per capita consumption of protein is 52.5 grams on an average per day of which the contribution of fish, milk and egg are 4gram, 7 gram and 2 gram Analysis of demand and supply In making analysis of demand and supply of milk, egg and fish I made full use of available information from the published sources BBS. The statistical year book of Bangladesh, I also made assumption to computer total demand and supply milk, egg and fish The assumptions made are as follows; • Per capita a liability of meat per day kin 2004-05 were 21 gram on an average which has been considered to estimate of the total supply of meat in the country. • Per capita requirement of meat per day has been assumption 120 gram to complete the total demand for meat • Average per capita availability of egg is 41 number s which has been considered to estimate of the total supply of eggs in the country, • Average per capita requirement of eggs has been compared 104 numbers. Three times than the present availability. • Per capita availability of milk per day is 42 ml which has been considered in the supply side. • Per capita milk requirement day had been assumed 250ml • Increase of population has been considered 2.3% per annum On the basis of above assumption, I have projected total demand for supply of egg, meat milk for some years as shown in following table. Distribution Distribution Channel Project
Product
Whole Seller
Retailer
Consumer From the above marketing analysis it appears that is huge gap in demand and supply of eggs in our country. To maintain healthy and nutrition of the people, if requires to increase the production of eggs. Even to maintain the present consumption level, eggs should be increased in order to meet up the increasing demand to be by future population of the country. The project on implementation will fulfill at insignificant percentage to the supply gap of eggs. So the project may be undertaken for bank financing, Earning Forecast Particulars Sales revenue Cost of goods sold Gross profit Administrative and general expenses Operating profit Non operating expenses Net profit
Year-1 65459 34500
Year-2 117944 49690
(Figure in 000) Year-3 118744 49760
30959 1255
68254 1265
68984 1270
29704
66987
67714
11660
10209
8582
18044
56780
59132
Approximate income of the project for Poultry • Out of 32000 Broiler parent stock will lay eggs all over the year per day. 32000 Broiler parent stock will lay 22400 eggs(75% of production). First year they will produce 2540160 day old chick. The price of sales of per chicks tk 25 1st year: male and female Broiler chicks 2540no. 2nd and subsequent year: male female Broiler chicks 4480000no. • Unsuitable for hatching eggs 635040 no(1 st year) old and 1164800(2nd year)l Cost of per egg should be tk3.00 • After 72 weeks of age 32000 parent stock should be sold out market as culled bird @tk 100-bird • Annual income from poultry manure should be tk 50000 Projected total demand for supply of egg, meat milk Item Demand MT Mea t Egg
120gm/day/perso n 6.01 million MT 104 no/year/person 14270 million
productio n 1.06 Million MT 5625 million
Estimated supply Supply gap 21gm/day/perso n 41/year/person
4095millionM T 8645 million
Annual report Livestock Ministry-2005 Production Plan Production from Livestock • Egg-4424 million • Milk-1.78 million MT • Meat- .78 million MT • Skin- 17.35sq meter 5year production and growth rate
Year production GDP 2001-01 6893 2.00 2001-02 7118 2.25 2002-03 7474 3.56 2003-04 7915 4.41 2004-05 8615 7.00 So production growth is 1.5% Production capacity The annual attainable production capacity of the project has been estimate as under • Day old chicks
1st year2nd year-
No. of Broiler-2540160 No. of Broiler-4480000 32000 after every62 weeks 635040 and 1164800 no(unsuitable for hatching)
• Culled bird • Eggs • Manure Assumption • The project will maintain 40000 numbers of parent stock constantly • Each bird will produce 70% numbers of eggs • 90% of fertile eggs • 90% of hatchability • 5% of birds mortality • 10% cocks considered Machineries Requirements The main machineries of the project are to be imported from abroad SL no. Items Unit Unit price in Total price US $ in US $ 1 Egg setting 4+4 675000 270000 capacity 95040 and Hatchery and chick master 2 Feeding 5 70000 350000 drinking and ventilation
system total
620000
Local Machine and Equipments: The following local machineries and equipment should be required for the project SL no.
Particulars
unit
01
Feed crusher hammer mills Spray Freeze(10 cft) Electric Line Sub- station 500 KVA Water pump with all fitting Weighting scale Firefighting equipment Generator Chicks sales box Egg trays for poultry shed Vaccinator and kit Air conditioner Brooding equipment Exhaust fan in the
02 03 04 05 06 07 08 09 10 11 12 13 14 15
1
Unit price in tk 500000
Amount in tk(000) 500
6 4
5000 30000
30 120
Ls 1
700000 1000000
700 1000
4
50000
200
2
5000
10
2
25000
50
1 Ls
40000000 Ls
8000 1000
1000
30
30
4
5000
20
4
6000
240
Ls
Ls
400
5
1000
5
hatchery 16 Ceiling fan 30 1500 23 17 Electric 2 15000 30 De-breaking machine 18 Other ls ls 100 equipment Machinery installation: Machines will be installed by local expert with consultation of supplier of machineries under the direct supervision of the technical consultant of the project Purchase of vehicles: Two pick up van for carrying and distribution of work of the project should be required. An amount of tk 45 lakh has been estimated for this purpose Human Resource Following manpower should be required for the proposed project 1. Farm side Person Farm manager Poultry specialist Machine operator Skilled labor Unskilled labor Driver Guard
Number 1 1 10 20 5 5 5
2. Administrative Person Managing director Accountant Typist Store keeper Cleaner Commercial officer Sales man
Number 1 1 1 1 2 2 5
Total manpower 85 Technology and Production process The technology and process involved in the project is scientific and sophisticated for this poultry specialist and technical personnel will be required in the project at first day old parent stock will be imported from abroad or locally and brooded up with the help of electrical brooder together with feeling and medical care of the birds will be feed up in reading shed they will start laying eggs. Then eggs will be placed for hatching in incubator machine. After 21 days, day old chicks will come out and they will sold out in the market Financial Aspect Estimated total projected cost (000) SL No Item Local currency total Existing Proposed 1 Land, 543 decimal 8145 8145 2 Building and other 62240 13170 civil work 3 Machines and 12958 57044 equipment(local) 4 Machines and 44640 8800 equipment(foreign ) 5 Parent stock 8800 12672 6 Preliminary feed 8640 500 cost 7 Tax and insurance 500 500 8 Installation 500 500 9 Furniture 200 200 10 Contingencies 500 500 Interest 2200 2200 Means of finance (000) Sl no 1
particulars Owner’s contribution
Local currency 59409
% 40%
2
Bank Loan Total
89114 148523
60% 100%
Assessment of Raw materials SL no 1 2
Particulars Feed Medicine Total
Utilities SL No Particulars 1 Electricity 2 Fuel 3 others Total Manufacturing expenses SL no. 1 2 3 4 5 6
Particulars Repair & maintenance Taxes and insurances Stores and spares Depreciation Utilities others total
Year-1 17280 2400 19680
Year-2 32400 2400 34800
Year-3 32400 2400 34800
Cons/day 2000 L.s. L.s.
Cost 4.15 L.s. L.s.
Total 2988 800 100 3888
Year-1 100
Year-2 110
Year-3 120
50
60
70
50
50
50
8912
8912
8912
3888 20 130
38888 20 13040
3888 20 13060
Summary of non operating expenses Particulars Interest on capital and IDCP
Year-1 11089
Year-2 9638
Year-3 8011
Year-4 6250
(figure in ooo) Year-5 Year-6 4192 1881
Interest on capital Total
571
571
571
-
-
11660
10209
8582
6250
4192
1881
Projected Balance Sheet SL no 1 2 3
4 5 6 7 8
Assets and liabilities Net fixed asset Cash balance Current asset Total Equity Retained earnings Long term borrowing Short term borrowing Other current liabilities
Year-0
Year-1
Year-2
Year-3
148523
137434
127796
119785
-
4595
48001
89234
-
6529
6529
6529
148523 59409 -
148258 59409 17126
182326 59409 71371
215548 59409 121594
89114
65194
45017
28016
-
6529
6529
6529
-
-
-
-
9 Purchase of parent stock Broiler parent stock 40000 day old parent stock should be purchased. It is to be imported from abroad. Considering the cost of per chicks @tk 200 a total tk 80 lakh should be required for this purpose 40000 male chicks and 5% extra female at no charge. Freed cost 1st year feed cost 172lakh 2nd and subsequent year feed cost 324 lakh Preliminary feed cost 86 lakh
Medicine cost Annual medicine cost should be L.S. tk 24000lakh. Utilities • Water: the requirement of water should be fulfilled by installing a water pump at the project site. • Power: the project area should be facilitated by the supply of electricity from REB. The electricity if near from the proposed site. So required permission should be obtained from concerned authority. Economic Aspect Employment generation The project on implementation will generate an employment opportunity for 85 persons of different discipline who work on a regular basis throughout the year. Contribution to GDP The project office implementation will contribute 56810 lakh to gross domestic products (GDP) of the country • Net sales in the 3rd year:117944 lakh • Less : inter farm transaction: 61134 Total contribution to GDP 56810 lakh. Accounting Plan Double entry method will be maintained because it is scientific and reliable and accrual basis will be followed for the recording of the farm’s transactions Conclusion Now days the popularity of Agriculture farming particularly poultry is increasing day by day, considering the demand of the common people and economy of the country a revolutionary development has taken place in implementation of agriculture farming. In very corner of Bangladesh mixed or individual farming become popular due to its profit margin. So it can be expected that the project will be successful and implemented. By various financial and economic analysis it has very clearly shown in the report thy the project is financially sound and has the possibility of very high earning performance. Reference:
• Bangladesh Bureau of Statistics • Annual report Livestock Ministry-2005