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.
