DOG BREEDING (GERMAN SHEPHERDS) BUSINESS IN UGANDA
Introduction
Dog breeding is the practice of mating selected specimens with the intent to maintain or produce specific qualities and characteristics. The German shepherd, from Germany was originally bred for herding and guarding sheep. Its origins date back to the 700’s. The German shepherd Dog is also known by the other names of Alsatian and Deutscher Schaferhund. The advent of the two World Wars influenced the history of this dog.
Production Capacity
This farm will be capable of producing 50 dogs in a period of six months.
Capital Investment Requirements and Equipment
This Farm will be operated locally on small scale, i.e. 50 shepherd Dogs kept on 2 acres of land. The Fixed Capital Investment required to start this project is US$ 43,048, the revenue potential is estimated at US$ 218,400 with the net profit margin of 28%. The payback period of this project is 2 years.
Market Analysis
There is a high demand for German shepherd Dogs especially in schools, households, farms, and industries among others. However, they may also be exported.
Project Costs
The projected costs of production are summarized in the Tables below:
Capital Investment Requirements in US$
| Capital Investment Item | Units | Qty | @$ | Amount $ |
|---|---|---|---|---|
| Land | Acres | 2 | 10,000 | 20,000 |
| German Puppies | No. | 50 | 150 | 7,500 |
| Field Van | No. | 1 | 5,000 | 5,000 |
| Tip Dishes | No. | 25 | 50 | 1,250 |
| Gas Cooker | No. | 1 | 500 | 500 |
| Puppy Pans | No. | 25 | 15 | 375 |
| Kennels | No. | 10 | 500 | 5,000 |
| Spraying Pump | No. | 5 | 30 | 150 |
| Injectors | No. | 5 | 6 | 30 |
| Spades & Pangas | No. | 4 | 4 | 16 |
| Weighing Scale | No. | 2 | 100 | 200 |
| Water Basins | No. | 25 | 5 | 125 |
| Harmers | No. | 2 | 3 | 6 |
| Wheel Barrows | No. | 4 | 30 | 120 |
| Hand Hoe & Rake | No. | 2 | 3 | 6 |
| Thermometers | No. | 2 | 10 | 20 |
| Water Tanks | No. | 2 | 100 | 200 |
| Dogs Beds | No. | 100 | 25 | 2,500 |
| Feeding Troughs | No. | 5 | 10 | 50 |
| Total Amount | 43,048 |
Operating Costs General Costs (Over heads)
| Item | Units | @ | Qty/ day | Prod. Cost/day | Prod. Cost/month | Prod. Cost/Year |
| Direct Costs | ||||||
| Dog Food | Kgs | 0.8 | 50 | 40 | 1,040 | 12,480 |
| Drugs & Medicine | M/gs/ Litres | 20 | 5 | 100 | 2,600 | 31,200 |
| Water | Litres | 0.0013 | 50 | 0.065 | 1.69 | 20 |
| Sub total | 140.065 | 3,642 | 43,700 | |||
| Labour | 300 | 3,600 |
|---|---|---|
| Repair & Maintenance | 200 | 2,400 |
| Gas | 200 | 2,400 |
| Ropes | 10 | 120 |
| Fuel | 400 | 4,800 |
| Depreciation Expenses | 480 | 5,762 |
| Sub – total | 1,590 | 19,082 |
| Total Operating Costs | 5,232 | 62,782 |
Project Product Costs & Price Structure
| Item | Qty/three months | Qty/yr | @$ | Pdn Cost/yr$ | UPx | T/rev |
| Puppies | 50 | 15,600 | 4.02 | 62,782 | 14 | 218,400 |
Profitability Analysis
| Profitability Item | Per day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 700 | 18,200 | 218,400 |
| Less: Production & Operating Costs | 201.2 | 5,231 | 62,782 |
| Profit | 498.8 | 12,969 | 155,630 |
| Profit | 220 | 5,017 | 60,730 |
- Production is assumed for 312 days per year. Depreciation assumes 25% write off for all assets. A production Month is assumed to have 26 days.
Sources of Supply of Raw Materials:
Raw materials will be locally sourced from Farmers who have already invested in the sector, Animal Husbandry Research Organizations & Centers in Uganda.
Government Facilities and Incentives Available:
The following incentives are available from Government in her bid to promote Agriculture: tax exemptions, basic infrastructure, and liberalized market.