Introduction
There is high demand for turkeys during festive seasons from customers such as Supermarkets, Canteens, Universities, Schools, and Hotels that seek for reliable and consistent suppliers.
There is high demand for turkeys during festive seasons from customers such as Supermarkets, Canteens, Universities, Schools, and Hotels that seek for reliable and consistent suppliers.
The business idea for packing turkeys is a very promising venture with a capital investment cost of US$14,500 and yielding estimated revenue amounting to US$ 116,813 annually, with a net profit margin of 42% and a payback period of 1 year and 3 months.
Process, Capacity and Technology
The birds are obtained from farmers rearing and healthy turkeys are taken to the slaughter house for slaughtering and dressed and dissected. The turkeys are sorted according to sizes and before they are packed, some are cut into pieces for packaging. Some are packed whole, or half or quarter pieces. While others are packed as specific parts of wings, breasts, bulbs, gizzards etc. It could also be packed as de-boned turkey meat.
The birds are obtained from farmers rearing and healthy turkeys are taken to the slaughter house for slaughtering and dressed and dissected. The turkeys are sorted according to sizes and before they are packed, some are cut into pieces for packaging. Some are packed whole, or half or quarter pieces. While others are packed as specific parts of wings, breasts, bulbs, gizzards etc. It could also be packed as de-boned turkey meat.
| Item | Unit | Quantity | Cost | Total |
| Slaughter Machine | No | 1 | 2500 | 2,500 |
| Defeathering machine | No | 1 | 200 | 200 |
| Guillotine, shelves, computers, | No | 1 | 800 | 800 |
| Refrigerated delivery Van | No | 1 | 8000 | 8,000 |
| Deep freezer | No | 1 | 1500 | 1,500 |
| office chairs/ desk | No | 1 | 1000 | 1,000 |
| Parking machine | No | 1 | 500 | 500 |
| TC of Machinery & Tools | 14,500 |
Production and Operation costs in US$(a) Direct materials, supplies and costs
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ mth | Pdn cost/yr | |
| Direct Costs | |||||||
| Turkeys | kgs | 10 | 16 | 160 | 4,160 | 49,920 | |
| Packaging boxes | Pcs | 0.26 | 16 | 4.16 | 108 | 1,298 | |
| Packaging polythene bags | Pcs | 0.19 | 32 | 6.08 | 158 | 1,897 | |
| Sub-total | 170.24 | 4,426 | 53,115 | ||||
General Costs (Overheads)
| Labour | 300 | 3,600 |
|---|---|---|
| Selling & distribution | 200 | 2,400 |
| Utilities (Water, power) | 188 | 2,256 |
| Rent | 217 | 2,604 |
| Depreciation | 302 | 3,624 |
| Sub-total | 1,207 | 14,484 |
| Total Operating Costs | 5,633 | 67,599 |
- Production costs assumed 312 days per year with daily capacity of 48 Boxes
- Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
- Direct costs include materials, supplies and all other costs that directly go into production of a product.
- A production month is assumed to have 26 days.
- Currency used is US Dollars.
| Item | Qty/ day | Qty/yr | Unit cost | Pdn cost/yr | UPx | TR |
| Packed turkey pieces | 48 | 14,976 | 4.51 | 67,599 | 7.8 | 116,813 |
Profitability Analysis in US$
| Profitability Item | Per day | Per month | Per year |
|---|---|---|---|
| Revenue | 374.4 | 9,734 | 116,813 |
| Less: Production and operating costs | 217 | 5,633 | 67,599 |
| Profit | 157 | 4,101 | 49,214 |
Source of Equipment
These can be obtained locally from the fabricators like John Lugendo & Co Ltd Ndeeba, Masaka Rd, email lugendojohn07@ yahoo.com as well as importing from India or China. Turkeys will be purchased locally from Soroti, Kumi, Katakwi, Bukedea and Kaberamaido and Northern Uganda while starting farm locally.
Government Incentives available:
Uganda Investment Authority- Provides guidelines on investment and government incentives, policies and security matters
1 Comments
I want to join the turkey supply business. I have them