Introduction
This business idea is for rearing of local hens for production of eggs. A hen is a domestic fowl bred for eggs or meat. This business idea is viable because you can get eggs, meat, hatch more chicks, which can also be sold at your wish. The business risk involved is diseases like cocidiosis; the solution is proper management and control of the business.
This business idea aims at production of 30,000 trays of eggs annually and 3,000 off layers per year. The revenue potential is estimated at US $ 135,000 annually. The initial capital investment cost for the project is US $ 995. The first three months demand a lot of investment yet returns are not realized. This idea needs a lot of patience.
Processes description
Chicks are kept in the brooder in which they are vaccinated and well fed on chick mash for 2 months till they grow feathers. They are then shifted to the main shelter in which they are fed for 3 months on growers mash. Cocks are then introduced to help fertilize the eggs. Reduce the noise, feed them on greens, ensure that water is enough and the hens will lay eggs.
Scale of Investment
Capital Investment Requirements in US$
| Capital Item | Units | Qty | @ | Amount |
| Feeders | No | 50 | 3 | 125 |
| Drinkers | No | 60 | 2 | 90 |
| Brooder | No | 2 | 80 | 160 |
| Poultry house | No | 3 | 200 | 600 |
| Stands | No | 4 | 5 | 20 |
| Total | 995 |
Production and Operating Costs in US$
| Cost Item | Units | @ | Qty | Amount | Pdn Cost/ month | Pdn Cost/ Year1 |
| Direct costs3: | ||||||
| Chicks | No | 1 | 3000 | 3000 | 15 | 180 |
| Coffee Husks | Bags | 4 | 20 | 80 | 4 | 48 |
| Feeds | Bags | 40 | 30 | 1200 | 4 | 48 |
| Medicine and vaccines | Times | 4 | 12 | 48 | 4 | 48 |
| Egg trays | Pcs | 0.75 | 300 | 225 | 4 | 48 |
| Subtotal | 31 | 372 |
General costs (Overheads)
| Labour | 300 | 3,600 |
|---|---|---|
| Utilities (water and electricity) | 50 | 600 |
| Administrative expenses | 100 | 1,200 |
| Shelter (rented) | 150 | 1,800 |
| Depreciation (Asset write off) Expenses | 35 | 420 |
| Sub-total | 635 | 7,620 |
| Total Operating Costs | 666 | 7,992 |
Production is assumed for 365 days per year.
Depreciation assumes 2 year life of assets written off at 50% per year for all
assets.
Project Product Costs and Price Structure
| Item | Period | Units | Output/ year | @ | UPx | TC | T/rev |
| Eggs | 12 months | Trays | 30,000 | 3 | 4 | 90,000 | 120,000 |
| Off Layers | 1.5 years | No. | 3,000 | 4 | 5 | 12,000 | 15,000 |
| Total | 102,000 | 135,000 |
Profitability Analysis Table in US$
| Profitability Item | Per day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 429 | 11,143 | 135,000 |
| Less: Production and Operating Costs | 25 | 660 | 7,992 |
| Profit | 403 | 10,483 | 127,008 |
Government facilities and incentives
The government of Uganda has continued to support agriculture through bodies like NAADS to advise farmers on how to rear poultry. There are extension workers and Veterinary Doctors in every district to offer free advice to farmers.
Market analysis
To survive in the highly competitive market one has to target supply to supermarkets, individual consumers and the export market.
