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.
The venture requires capital investments of US$ 36,030, which is anticipated to yield annual revenue of US $993,720, with a payback period of 4 months.

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

Item Units Qty Unit cost Amount
Head Remover No 7 300 2,100
ZD60-80 Un hair machine No. 1 5,200 5,200
Claw removing machine No. 1 1,800 1,800
Eviscerating machine No. 1 3,750 3,750
Chilling machine No. 2 3,000 6,000
Convey belts No. 1 2,930 2,930
Delivery van (Refrigerator) No. 1 12,000 12,000
Other tools No. 2,250
Total 36,030

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
Chicken birds Kgs 6 325 1,950 50,700 608,400
Water liters 0.2 3,205 641 16,666 199,992
Packaging materials Pieces 0.15 2,000 300 7,800 93,600
Sub-total 5,530 2,891 75,166 901,992

General Costs(Overheads)

Labour costs 1,200 14,400
Utilities 1,000 12,000
Administration expenses 292 3,504
Selling & distribution 167 2,004
Fuel 200 2,400
Miscellaneous expenses 125 1,500
Cleaning and toiletries 196 2,352
Depreciation 751 9,012
Sub-total 3,931 47,172
Total Operating Costs 79,097 949,160
  1. Production costs assumed 312 days per year with daily capacity of processing 325
  2. 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
Processed Chicken 325 101,400 9.4 949,160 9.8 993,720

Profitability Analysis Table

Profitability Item Per Day Per Month Per Year
Revenue 3,185 82,810 993,720
Less: Production & Operating Costs 3,042 79,097 949,160
Profit 143 3,713 44,560

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)


John Doe
John Doe

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Hi, jenny Loral
Hi, jenny Loral

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