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Rearing of Broilers

The rearing of Broilers commenced after completion of construction of shed, Electric service connection, Contract Agreement with Venkateshwara Hatcheries Private Limited and Sanctioning of Loan from IDBI Bank, Rampur branch of Warangal District etc.. First batch of One day Chicks received on early hours of 26th August 2015.

Monday, February 16, 2015

Photos of Broiler flock





MODEL PROJECT REPORT for Broiler Farming on Contract system



PROJECT REPORT FOR  ESTABLISHMENT OF 9,000 COMMERCIAL  BROILERS PER CYCLE IN DEEP LITTER SYSTEM OF HOUSING (ALL IN ALL OUT SYSTEM )


CHAPTER – I

HIGHLIGHTS OF THE PROJECT REPORT

A: ABOUT THE PROMOTER

Name of the farmer                                        : ..................................
Address                                                           : .....................................
                                                                          .....................................
Contact No.                                                     : .....................................
Date of Birth                                                   : ....................................
Educational Qualification                              : ...................................
Experience                                                      : ..................................

B: PROJECT PROFILE

1. Name of the Establishment                                    : .................... Poultry Farms
2. Project Location                                         : S..............................................
                                                                          ...............................................
 
1. Types of Birds                                            : Poultry (Broiler)
2. Name of Contract Farming Company        : Venkateshwara Hatcharies Limited
3. Unit Size                                                     : 9000 Birds
4. Product                                                       : Birds, Manure etc.
5. Cost of the Project                                      :
6. Bank Loan                                                  :
7. Margin Money                                            :
8. Financial Indicators
                        BCR at 15% DF                      :
                        NPW 15% DF (Rs)                 :
                        IRR (%)                                  :
                        DSCR                                      :
9. Interest Rate                                               : 12
10.Repayment                                                 : 6 years

CHAPTER - II
INTRODUCTION
Poultry farming is an important source of subsidiary income to small / marginal farmers and agricultural laborers. The manure from birds provides a good source of organic matter for improving soil fertility and crop yields. Since agriculture is mostly seasonal, there is possibility of finding employment throughout the year for many persons through poultry farming. With the adequate infrastructural facilities especially for broiler production has become increasingly popular in and around. The present demand in the area is more. It is increasing day by day and present strength of the flock in the area is not in a position to meet the growing demand. Beside the traders come from near by towns / cities at regular intervals to lift the produce. To take care of the health hazards, adequate veterinary aid facilities are available in the nearby town through the State Animal Husbandry Department dispensary.
OBJECTIVE
To meet the growing demand of Broilers, I intended to establish a Broiler farm initially with Broilers which will be reared on deep litter system / cages. All inputs require for rearing of birds are provided by contract farming company. After rearing all birds are marketed to the company on contract basis.
LOCATION
The proposed unit will be located on a piece of land which is almost leveled and is well connected to approach road, Electricity is available near the farm site. A tube well with electric motor pump set is already existing in this land and this water will be used for proposed poultry farm and adequate water of good quality is available in this tube well.
HOUSING
Provision has been made for the construction of a brooder cum grower house measuring at a rate of 1 square feet per bird, Besides it, farm will have a small store room and servants quarter. Construction of house will be pucka with asbestos roofing. The laying of pipeline for supply of adequate water supply is also be done.
EQUIPMENT
Standard equipments are available from various equipment manufacturers located in the nearby cities.
CHICKS
One day old commercial hybrid chicks are available from the hatcheries. In order to cover transportation, hatchery is supplying 3% extra chicks. Chicks will be vaccinated against Rd and Marek’s at source. Chicks will be purchased in lots at regular intervals.
FEED
Company will provide feeds require to birds on contract basis.
MEDICINE AND VETERINARY AID
The person who will be looking after the day-to-day management of the farm is conversant with the use of medicines. In case of need, the sick birds will be taken to the disease investigation laboratory located in town. For various operations like vaccination, medication etc. a poultry specialist visits the area at regular intervals.

CHAPTER – III

MARKET POTENTIAL
The domestic broiler meat demand is growing at the rate of 15 – 18% on back of factors like rising purchasing power, changing food habits and increasing urbanization. The growth is supported by implementation of large scale contract poultry farming by integrated players. Overall domestic poultry market size is estimated at Rs. 47000 crore with broiler meat. Globally India ranks fourth in Broiler meat production with annual production of 2.9 million ton (MT).
Contract farming is billed to be veritable instrument to address many of the traditional ills affecting the agriculture sector and the farmers. Under the contract growing agreement birds are marketed to the company on the basis of growing charges. Thus, the farmer assumes the production related risks and the price risk is transferred to the company. In India contract farming has considerable potential where small marginal farmers can no longer be competitive without access to modern technologies and support. Contract farming can fill this gap by providing the farmers with quality inputs, technical guidance, management skills, credit as well as knowledge of new improved technology. Pricing arrangement can significantly reduce the risk and uncertainty of market place.

CHAPTER - IV
SWOT ANALYSIS
STRENGTHS
Poultry has the potential to meet the protein requirements of a nation where malnutrition is rampant, since both eggs/broilers are a good source of protein.
Helps to augment the income of the rural masses. Thus improve the socio-economic status of rural population.
Poultry is one of the most efficient converters of plant products / waste in to edible food that can in some measure tackle the problem of malnutrition especially in a country like India.
Unlike other meat (beef, pork) which have religious taboos, chicken is widely accepted in India and is cheaper than goat / sheep meat.
Poultry litter has high manure value and can be used in agriculture activities.
It has tremendous potential to create non-farm employment and check migration from rural to urban areas.
Generates relatively quick returns with low investment requirements.
OPPORTUNITIES
Present per capita meat consumption in India is increasing day by day, therefore there is large scope for poultry farming.
Besides this, India has also great potential market.
The increasing awareness of the need for the balanced nutrition has led to changes in the eating habots.
WEAKNESS
Poultry farming is labor intensive.
A peculiar feature of the poultry industry is that it is highly fragmented.
Low growing charges coupled with the cost of making investments in the infrastructure such as sheds, feeders, breeders, waterers, heating and cooling systems result in a low income for farmers.
The stringent mortality norms (only a 5% mortality is permitted in most integration contracts, else the farmer gets penalized and is offered a lower rate) leaves the farmers in a vulnerable position and with no avenue to voice their grievances.
THREATS
Natural calamities.
If adequate death precautions are not taken infectious / contagious diseases can be spread. The recent avian flu has spread a wave of panic across the globe. The other aspects that have dragged the poultry industry are the recent SARS and Ebola.
Shortage in major feed ingredient i.e., maize, which constitutes more than 50% of feed rations. Therefore even a small increase in costs can wipeout the profits.












ANNEXURE - I
ECONOMICS IN BROILER FARMING - TECHNO ECONOMIC NORMS

1
No. of birds per batch
9000
2
Rearing period (weeks)
6
3
No. of batches per year
6
4
No. of batches sold per year
6
5
Space requirement per bird (sft)
1
6
Cost of construction of shed (Rs./sft)
150
7
Store Room (sft)
200
8
Cost of construction of Store room
Existing
9
Labor quarter (sft)
150
10
Cost of construction of Labor quarters
Existing
11
Cost of electrification (as % of civil costa)
4
12
Equipment cost (Rs/bird)
24
13
Mortality in 6 weeks (%)
4
14
Cost of Day Old Chicks (Rs/chick)
Contract Company supply
15
Supply for free chicks (%)
4
16
Feed requirement (kg/bird)
3.2
17
Feed cost (Rs/kg)
Contract Company supply
18
Expenditure on labor (Rs/batch i.e. 2 months)
18000
19
Cost of medicines, vaccine etc
Contract Company supply
20
Cost of litter (Rs/bird)
2
21
Average body weight of birds (kg/bird)
2.2
22
Sale price of Broilers (Rs./kg body weight) (Contract Company)
4.5
23
Sale price of bird (Rs/bird)  (Contract Company)
9.45
24
Income from Manure (Rs/bird)
1
25
No. of gunny bags (per ton of feed)
20
26
Income from gunny bags (Rs./bag)
10
27
Depreciation on sheds (%)
5
28
Depreciation on equipment (%)
10
29
Margin Money (%)
45
30
Interest rate (%)
14
31
Repayment period (years)
6
32
Grace period years (years)
0.5
33
Construction period (months)
3
34
Rest period for broiler sheds (days)
10 - 15

ANNEXURE - II
ECONOMICS OF BROILER FARMING – INVESTMENT COST

S.No.
Particulars
Specifications
Units
Unit cost Rs
Total cost Rs
1
Sheds and other structures





a) Broiler Shed
1sft per bird
9000 sft
150
1350000

b) Store Room

200 sft

Existing

c) Labor quarter

150 sft

Existing
2
Water supply system





a) Digging of Tubewell



Existing

b) Water tanks
2 No.s
1000 ltrs each
6000 each
12000

c) Electric motor pump set



Existing

d) Electrical installations/ equipment

4% of civil costs

54000
3
Equipments





a) Feeders and Waterers
Cost per bird
9000
22
198000

b) Foggers

150
38
5700

c) Sprinklers

30
75
2250

d) Brooders

10
1000
10000
4
Capitalization of recurring expenses for one batch





a) Chick cost



Contract company

b) Feed cost



Contract company

c) Medicine, vaccine etc



Contract company

d) Litter

5 Tonns
2200
11000

e) Labor cost per batch

9000 /month
2
18000

f) Power charges per batch



15000
5
Total Financial Outlay (TFO)


1676000
1680000
6
Margin Money @ 45% of TFO



776000
7
Bank loan @ 55% of TFO



900000

ANNEXURE - III
ECONOMICS OF BROILER FARMING – FLOCK PROJECTION CHART
Year
No. of batches introduced
No. of batches sold
I
6
6
II
6
6
III
6
6
IV
6
6
V
6
6
VI
6
6

ANNEXURE - IV
ECONOMICS OF BROILER FARMING – CASH FLOW ANALYSIS
S.No.
Particulars
I Year
II to V Years
VI year
I
COSTS



A
Capital Cost
1632000
0
0
B
Recurring costs



a
Cost of chicks
0
0
0
b
Cost of Feed
0
0
0
c
Misc expenses
0
0
0
d
Litter
66000
66000
66000
e
Labor charges
108000
108000
108000
f
Power bill
90000
90000
90000
II
BENEFITS



A
Sale of birds (Rs 4.5 /kg)
507600
507600
507600
B
Sale of Manure
54000
54000
54000
C
Sale of gunny bags
34500
34500
34500
D
Depreciation value of



i
Sheds


405000
ii
Equipment incl water pump


158400
E
TOTAL Benefits
596000
596000
1159000

NET Benefits
-1300000
332000
332000

NPV




a) Cost




b) Benefits




c) NPW




d) BCR




e) IRR









ANNEXURE - V
ECONOMICS OF BROILER FARMING – REPAYMENT SCHEDULE

Year
Loan outstanding
Gross surplus
Interest @14%
Principal
Tot Repayment
Surplus
I
900000
332000
126000
100000
226000
106000
II
800000
332000
112000
120000
232000
100000
III
680000
332000
95200
139800
235000
97000
IV
541000
332000
75800
159200
235000
97000
V
382000
332000
33500
200000
233500
98500
VI
182000
332000
25500
182000
207500
124500

TOTAL

468000
901000
1369000
623000