This project idea is based on the need to add value by processing chicken to reduce the rudimentary form that is dangerous for human consumption. Chicken is widely consumed in many households, hotels, schools and restaurants.
Production Capacity, Technology and Process
The processes involve:
The birds are put in an automated head remover machine.
They are transferred to specialise a conveyer which sends them to automated picking machine that pluck the feathers off the birds.
They are then sent to the eviscerating equipment where the birds their insides are cleaned, packed and stored in a chilling machine ready for distribution.
Capital Investment Requirements
|ZD60-80 Un hair machine||No.||1||5,200||5,200|
|Claw removing machine||No.||1||1,800||1,800|
|Delivery van (Refrigerator)||No.||1||12,000||12,000|
Production and Operating Costs (a)Direct materials, Supplies and Costs
|Cost Item||Units||Unit cost||Qty/day||Pdn cost/ day||Pdn cost/ mth||Pdn cost/ yr|
|Selling & distribution||167||2,004|
|Cleaning and toiletries||196||2,352|
|Total Operating Costs||79,097||949,160|
- Production costs assumed 312 days per year with daily capacity of processing 325
- birds. Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets. Direct costs include materials, supplies and other costs that directly go into production of the product. Total monthly days assumed are 26-days. The valuation currency used is United States Dollars.
Project product costs and Price Structure
|Item||Qty/day||Qty/yr||Unit cost||Pdn/yr||Unit price||T/rev|
Profitability Analysis Table
|Profitability Item||Per Day||Per Month||Per Year|
|Less: Production & Operating Costs||3,042||79,097||949,160|
Government Facilities and Incentives
The government has put aside an agricultural fund and there is a European investment fund targeting such areas of investment.
Production process General Costs (Overheads)