SETTING UP A CHICKEN HATCHERY

Introduction

This business idea is aimed at setting up a Chicken Hatchery. It is premised on hatching eggs for layers and broilers for both local and hybrid birds. The business will be hatching 38,000 chicks per month, which translates into 456,000 chicks per year.

The revenue potential is estimated at US$ 45,805 per month, which translates into US $ 549,657 per year. The business has a good market demand throughout the year and can provide employment to youth and women. The production capacity of the hatchery is 38,000 eggs per month. The project initial total cost is US$ 19,500 with a net profit margin of 88% with a payback period 3 years and 5 months.

Process Description

Selected good eggs are collected and inserted into an incubator for 18 days. They are then transferred into a Hatchery for 3 days to hatch.

Capital Investment Requirements in US$
Item Unit Qty @ Total
Incubator No. 1 6,000 6,000
Hatchery No. 1 6,000 6,000
Feed mills & Mixer No. 1 2,500 2,500
Generator No. 1 5,000 5,000
TC of Machinery 19,500
Project Product Cost and Price Structure in US$
Items Period Output @ UPx TC TR
Layers 21 days 19,514 0.1 1.4 2,765 26,600
per year 234,168 33,184 327,825
Broilers 21 days 18,486
0.1 1 2,620 18,000
per year 221,832 31,436 221,832
Total 456,000 64,620 549,657

 

Production and Operation Costs in US$
Item Units @/day Qty Prod. cost/ day Prod. cost/ month Prod. cost/ year
Parent stock No. 15 100 1,500 18,000
Eggs No. 0.05 38,000 1,900 22,800
Coffee husks Tones 15 1 15 180
Disinfectants Litres 1.3 3 4 104 1,248
Vaccines Litres 2.5 4 10 260 3,120
Sub-total 3,779 45,348
Profitability Analysis in US Dollars
Profitability item per day per month per year
Revenue
Layers 1,301 27,319 327,825
Broilers 880 18,486 221,832
Less production & operating costs 256 5,385 64,620
Profit 3,368 40,419 485,037
Layers 599.19 21,258 255,100
Broilers 210.19 26,375 316,500

General costs (Overheads)

Utilities (power) 200 2,400
Utilities (water) 40 480
Salaries 360 4,320
Feeds 120 1440
Fuel 320 3,840
Renting 160 1,920
Depreciation(Assets write off) Expenses 406 4,872
Sub-total 1,606 19,272
Total Operating Costs 5,385 64,620

Production assumed 21 days in a month with a capacity of 38,000 eggs per press.

Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year.
Market Demand

The supply of one day chicks has a high demand both in rural and urban areas throughout the year. Market for the one day chicks from good breeders can be produced anywhere in the country to reduce transportation and sold within the country and to the neighboring countries

Government Incentives Available:

Agriculture equipments, tools and chemicals are duty free on importation.

Equipment Suppliers

Some of the equipments can be purchased from the local market; some are just imported from Europe, India, South Africa and China.

Risk

The risk involved in this kind of business is poultry diseases like coccidiosis which can be mitigated by vaccination of the birds either weekly or monthly.

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