Pre-Feasibility StudyEnvironmentally Controlled Poultry House (30,000 Birds) PRE-FEASIBILITY, CONTROLLED POULTRY HOUSE OF 30,000 BIRDS 2010 Table of Contents EXECUTIVE SUMMARY ........................................................................................................................................................................................ 3 1. OVERVIEW OF THE POULTRY SECTOR ................................................................................................................................................ 4 1.1. Industry Dynamics................................................................................................................................................................................. 4 1.1.1. 1.2. 1.3. Segmentation ........................................................................................................................................................................................................... 5 Marketing Analysis ................................................................................................................................................................................ 5 Problems with Poultry in Pakistan ...................................................................................................................................................... 6 2. PRE-FEASIBILITY STUDY FOR ENVIRONMENTALLY CONTROLLED POULTRY HOUSE ....................................................... 8 2.1. Comparative Efficiency of ECH and COH ......................................................................................................................................... 8 2.2. Existing Marketing Practice & Pricing................................................................................................................................................. 9 2.3. Farm Management ............................................................................................................................................................................... 10 3. THE PROJECT .............................................................................................................................................................................................. 13 3.1. Project Brief ........................................................................................................................................................................................... 13 3.2. Proposed Capacity ............................................................................................................................................................................... 13 3.3. The Product ........................................................................................................................................................................................... 13 3.4. Product Assumptions .......................................................................................................................................................................... 14 3.5. Manpower Requirements .................................................................................................................................................................... 15 3.6. Farm Equipment................................................................................................................................................................................... 16 3.7. Land and Building ............................................................................................................................................................................... 17 3.7.1. Mode for Acquiring Land........................................................................................................................................................................................ 17 3.7.2. Preferred Locations – Sindh ................................................................................................................................................................................... 18 3.7.3. Infrastructure Requirement ................................................................................................................................................................................... 18 3.8. 4. Working Capital ................................................................................................................................................................................... 18 THE FINANCIAL ANALYSIS ..................................................................................................................................................................... 19 4.1. Project Economics................................................................................................................................................................................. 19 4.2. Financing Option .................................................................................................................................................................................. 20 4.3. Projected Income Statement ................................................................................................................................................................ 21 4.4. Projected Cash Flow Statement .......................................................................................................................................................... 22 5.5. Projected Balance Sheet ....................................................................................................................................................................... 23 KEY ASSUMPTIONS.............................................................................................................................................................................................. 24 ANNEX A .................................................................................................................................................................................................................. 27 ANNEX B .................................................................................................................................................................................................................. 28 ANNEX C .................................................................................................................................................................................................................. 29 IMPORTANT CONTACTS .................................................................................................................................................................................... 30 2 PRE-FEASIBILITY, CONTROLLED POULTRY HOUSE OF 30,000 BIRDS 2010 Executive Summary This Pre-feasibility study is conducted for establishment of Environmentally Controlled Poultry Farm in Sindh. All the calculations have been based on a flock size of 30,000 birds, with raising 8 flocks per year. The controlled poultry farm is a project of Livestock Sector, in which, the day old chicks (also known as DOCs) are raised on high protein feed for a period of six weeks with a lag time of 10 – 15 days for the cleaning and fumigation of the sheds and the farm. The purpose of the controlled poultry farm is to provide all the facilities ranging from automatic operations of temperature control, feeding and nipple drinking system for the broiler birds, monitored by the concerned & technical staff, all in-house. Broiler farming in controlled environment is a profitable venture due to continuous increasing demand of the white meat in the market. Poultry is an important sub – sector of agriculture and has contributed enormously to food production by playing a vital role in the domestic economy. Poultry meat contributes 19% of the total meat production in the country. There is a tremendous opportunity for Environmental Control Poultry Houses in Pakistan. Currently there are 2,500 houses working in Pakistan, out of which 75% (1,875) are in Punjab and remaining 25% (625) are in other provinces1. The initial cost of the project is Rs. 29,596,720, including of an initial working capital of Rs. 5,774,720. 1. Projected Revenues for the project for year 1, year 2, year 3, year 4 and year 5 is Rs. 53,194,080, Rs. 58,513,488, Rs. 64,364,837, Rs. 70,801,320 and Rs. 77,881,453, respectively. 2. Gross profit / (loss) for year 1, year 2, year 3, year 4 and year 5 is Rs. 9,880,800, Rs. 11,556,336, Rs. 13,435,454, Rs. 15,540,431 & Rs. 17,895,872, respectively. 3. Payback period of the project is approximately 3.5 years. 4. The IRR of the project is 21.52%. 1 Source: Environmental Controlled Poultry Farm, SMEDA, April 2010 3 etc. 1.500 houses are working. Pakistan’s poultry industry is importing 100. Its contribution in agriculture growth is 4. reducing pressure on demand for mutton and beef and earning of foreign exchange. poultry farming and feed sectors. The farmers get day old broiler from hatcheries.84%. Whereas developed world is consuming 41 KG meat and over 300 Eggs per capita per year.PRE-FEASIBILITY. or in some cases. Poultry feed mills are the major player in the poultry industry. Per capita availability went up from 23 in 1991 to 46 eggs in 2009 and poultry meat availability increased from 1. These breeder farms depend on producers of parent stock. In our Country per capita consumption of meat is only 7 KG and 60-65 eggs annually. These grandparents produce parent stocks (Breeders) and parent stock end up in producing the final product which is broiler. which are imported. CONTROLLED POULTRY HOUSE OF 30. sunflower meal.5 million people in Pakistan. the total poultry meat contributes to 23. viz. rapeseed meal. gluten. Poultry industry can broadly be divided into three groups. Pakistan.48kg to 2. has gone through a sizeable growth in the production of poultry meat and eggs.1. 2 FAOSTAT (2009) 4 . Industry Dynamics The generation line of broiler comes from pure line (Strains) that make the Great Grand Parents (GGP). Holland. canola meal. This sector generates employment and income for about 1.8% of the total meat production in the country. When feed efficiency matters most you can gain the right weight of your bird. These hatcheries maintain their breeder farms. which produce a specific formula feed mix.000 Environmental Control Houses in Pakistan and currently only 2. It has great potential and can play a significant role in the national economy by contributing towards food security of the country. These great grandparents produce grandparents which are available in Pakistan. with a population of 170 Million people.000 BIRDS 2010 1. purchase their hatching eggs from breeder farms. hatchery. Germany and USA with the cost of US$100 per day-old female chick.000 Grandparents (GP) chicks annually from Australia.88 kg during the same period2. feather meal and rich energy elements like grains. The major component of cost of production of chicken meat accounts for feed cost. whereas. Overview of the Poultry Sector Poultry is an important sub – sector of agriculture and has contributed enormously to food production by playing a vital role in the domestic economy. Poultry feed consists of rich protein elements like soya bean meal. According to Industry sources there is capacity of 5.81% and in Livestock growth is 9. Segmentation3 Total Investment No. CONTROLLED POULTRY HOUSE OF 30.000 6 Million 600 Million 621. The chart below illustrates the increase in the number of poultry population over the years4. Figure 1: Increase in the number of Poultry population in Pakistan (2000 .e.1. Marketing Analysis PKR Million The total Poultry population in Pakistan is approximately 610 Million.000 Metric Ton 1.2. Poultry meat and and Eggs3. of Hatcheries No of Feed Mills Grand Parents Parents Broiler Poultry Meat Rs.PRE-FEASIBILITY. there has been a substantial increase in the Livestock products pertaining to Poultry i. SMEDA.000 BIRDS 2010 1. 200 Billion 400 150 200.2010) Similarly. 3 Source: Environmental Controlled Poultry Farm.1. April 2010 4 Source: Economic Survey of Pakistan 2010 – 2011 5 . The main sources of animal proteins in Pakistan are beef. poultry meat and eggs. while only 69.887 million ton. To overcome the gap between supply and demand of proteins. Many big companies have established their poultry farms in different parts of the country.e. CONTROLLED POULTRY HOUSE OF 30.61 g per person per day is being used in the country. In the same year world total chicken meat production was 52. SB and Jadeed. The profitability can be increased through better management practices and establishment of fully equipped controlled poultry houses. 5 Source: Pakistan Poultry Association (www. vigour and productive capacity of the people. To name a few such key players are K&N. Sabir.PRE-FEASIBILITY. poultry meat is contributing a dominant share which can be enhanced by improving the profitability of producers and by decreasing prices at the retail level. Proteins play an important role in the formation of balanced human diet. In the provinces of Sindh. Sukkar. to produce chicken meat in 2008. mutton. animals and plants. milk. there are farms in Mirpurkhas. Hitech. Nawabshah as well as in small cities. Problems with Poultry in Pakistan A balanced diet is essential for good health. The requirement of proteins is 102. as approximately 66% Pakistanis are deficient in proteins. 517 million birds were slaughtered and 601 million tonne meat was acquired. 1.3.000 BIRDS 2010 Figure 2: Increase in the number of Poultry Eggs & Meat in Pakistan (2000 .com) 6 .000 poultry farms are in the country5.ppapaknorthern.2010) According to FAO. There are around 25. There are mainly two sources of proteins i.7 g per person per day. The poultry production is concentrated around the large urban centres in the provinces of Sindh especially in Karachi. The human diet in Pakistan is deficient in animal proteins. 6 to 41. being a tropical country. chickens reduce their feed intake during hot weather. FCR (Feed Conversion Ratio) in broilers along with mortality or he has to totally close his business to avoid all these risks.000 BIRDS 2010 Pakistan. In all stages of development. Inadequate health facilities are one of the major constraints in poultry production. If the temperature is above this zone. depresses their growth and makes poultry production an unmanageable and uneconomical pursuit. weight gain.7°C). The thermo-neutral zone is 65-75°F (18-24°C). These houses when equipped with highly mechanized system of automatic chain feeding and nipple drinking makes the environment quite conducive for poultry production and reduces the risk of bacteria during different seasons. Since eating increases body temperature. which allows chickens to maintain their body temperature. It is due to viral. This affects the efficiency of the poultry farms and the chickens. because panting does not cool them under these conditions.4°C) to help dissipate heat. Environment controlled houses can overcome such critical situations. and therefore gains will be less. Chickens can tolerate high temperatures but react negatively if they are too warm. Chickens begin panting at 85°F (29. Grading is largely ignored in egg trade because of extra cost required for grading. During this period owner has to either continue his flock compromising with poor performance in feed intake. Chickens have no sweat glands. experience various temperatures throughout the year of which summer is the most common. CONTROLLED POULTRY HOUSE OF 30. This situation creates severe shortage of poultry meat which is the cheapest and easily available source of animal protein. bacterial infection and parasitic infestation. there is a need for improving the efficiency and lowering the cost of distribution. substandard and costly feed and inefficient marketing system. Losses occur in case of death of birds due to diseases and poor handling. The body temperature of an adult chicken is 105-107°F (40.PRE-FEASIBILITY. which counteracts the adverse effects of heat stress providing tunnel ventilation and enhancing the wind chill effect. growth rate. The poultry industry also faces problems like the incidence of diseases. 7 . Hot and humid weather conditions coupled with manual and poor management practices increases the mortality in flocks. A combination of high temperature and high humidity is a problem. During this period the temperature reaches over 40°C in different parts of Pakistan. and drink more to avoid dehydration. heat must be lost in some way. 000 BIRDS 2010 2. The technology of ECH is rapidly becoming popular among broiler producers.3 2. This has solved a great hurdle of heat stress in the way economical commercial poultry production. The ECH with evaporative cooling system.00 8 .65 Kg 5 Humidity of shed Controlled High 6 Brooding Energy saving Energy wastage 7 Carbon mono oxide poisoning Nil Very high 8 Ammonia poisoning Nil Very high 9 Mortality 5–8% 10 – 30 % 10 Electricity Required No required 11 Rodent Control Successful Failed 12 Wild protection No risks High risky 13 Bio-security measure Very easy Very difficult 14 Noise stress Nil Very high 15 Environmental Stress Nil Very high 16 Mortality due to heat stress Nil 20-100 % 17 Over head / bird Rs. providing tunnel ventilation. Pre-Feasibility Study for Environmentally Controlled Poultry House 2. A comparison is given below of ECH and a traditional house which highlights significant advantages of an ECH are given below: No Specification Control House Traditional House 1 Feed Conversion Ratio 1.9 Kg 1.8.10. 5 2 Feed wastage Nil 10 % 3 Feed distribution Automatic Laborious 4 Body Wt / bird 42 days 1.9 – 2. Comparative Efficiency of ECH and COH The modern trend of environment control houses (ECH) in poultry production has brought a great revolution in poultry industry of Pakistan in the recent years.PRE-FEASIBILITY.1. giving the wind chill effect has markedly improved the broiler production system. CONTROLLED POULTRY HOUSE OF 30.00 Rs. PRE-FEASIBILITY. There is an increase of 25% from what is mentioned on the PPA Website as those rates are pertaining to the Punjab Province whereas in Sindh the rates are high. CONTROLLED POULTRY HOUSE OF 30.com). 2.000 BIRDS 18 Dosage of vaccine & medicine Accurate Wastage 19 Medication & vaccination application Appropriate Difficult 20 Litter humidity Under control Not control able 21 Flock Sizing One size Multiple size 22 Shed temperature Automatic Big variation 23 Expenditure of maintenance energy Accurate Wastage 24 Poultry environment (neighboring) Health Contaminated 25 Fly control Successful Not possible 26 Feed and water intake Recordable No recordable 27 Light intensity Controlled Not control able 28 Feed storage environment Appropriate Humid 29 Flock monitoring Computerized Error 2010 All these significant features in ECH have reduced the cost of production of broiler to Rs.2. 9 . Existing Marketing Practice & Pricing The Broilers are distributed in the market through Middleman and Whole seller. 170 120 55 50 60 – – – – – 200 145 75 65 70 6 Source: Pakistan Poultry Association (www.ppapaknorthern. Broilers are transported to the urban market and are sold on live-weight basis. The current pricing of the broilers and other poultry products are mentioned below6: Product Chicken Meat per KG Chicken (Live) Eggs per Dozen Day Old Chick Broiler Day Old Chick Layer PKR Rs. 7 to 8 Per Bird as compared to COH. 9.). diesel heaters. On the basis of information provided by Poultry Research Institute and by leading companies of poultry industry to the CCP the cost of production of day old broiler chick was around Rs 18 per chick.5 respectively in January 2008.450 in 2010. control panels and other consumable items (feed.PRE-FEASIBILITY. medicines. leading towards proportional increase in the prices of poultry meat.9 and Rs 39 in October 2009. exhaust fans. The data made available by Poultry Research Institute shows price of day old broiler and layer chick was Rs 11 and Rs 35. 10 . 955 during year 2008.000 BIRDS 2010 During the years 2008-09 and 2009-10 sharp fluctuations occurred in the prices of day old chicks. 28 respectively and the highest price was Rs 71. The figure below illustrates what the farm will look like once constructed and ready for flock raising. The current price of DOC’s range from Rs. 70. water. The lowest price during the period for broiler and layer day old chick was Rs. One of the factors of increase in the prices of day old chicks and poultry meat is the increase in prices of feed that is one of the basic inputs in poultry industry. 50 – Rs. 6 and Rs. electricity etc. 1. which rose to Rs. The chick was being sold below cost during almost all months of the year 2008 and since January 2009 the prices rapidly increased and touched the figure of Rs 71. since the price of day old broiler chick are directly related to price of poultry meat. 60 – Rs. rice husk.3. The prices of poultry feed also showed a consistent increase during the years of 2008 to 2010. CONTROLLED POULTRY HOUSE OF 30. Farm Management Farm input required for a broiler farm includes farm equipment (Automatic feeding system. cooling pads. The average price of a bag of 50 kg poultry feed had been Rs. vaccines. 2. 65 whereas DOC layer costs Rs. water nipple system. alert and bright eyed. As chicks grow. Secondly.000 birds.e.PRE-FEASIBILITY. Using new litter for each flock is good for raising disease free broiler. In 30. Feeders The pan feeders of automatic feeding system are for 65-70 birds. whenever bird touches the nipple water flows out and when bird will away no water is there. It is feed to the broiler up to 5 weeks of age. Extensively wet and dusty litter should be also not be used. Automatic feeding system The nipple is enough for 12-15 birds.000 broilers house total nipples required are 2500 there are automatic water system.000 BIRDS 2010 Below are features of the Environmentally Controlled Poultry House: Day Old Chicks The Chicks should be uniform size. Diesel heaters supply heat at the stage of brooding in the Poultry Farm. 11 . One house 20. It should be dry and free of mould. In the first week 32 ‘C is quite comfortable. 465 feeders in a house are enough for 30. Litter Litter is spread on the floor. 900 watts. The shank or leg covering (skin) of health chicks appears bright and shiny. Therefore. Lighting The control house broiler grows on artificial light (not the sunlight). Feeding Broilers re usually feed with following two types of broiler starter. the temperature may be reduced at the rate of 2 ’C per week until 24 ‘C reached in last week. Housing The Broiler control house size 400 feet long and 50 feet side is enough for 30. Rice husk is usually for the making the litter. is the Broiler Finisher which is feed to the Broiler of more than 5 weeks and continued till the age of marketing. Caked or mould material should be removed and refilled with fresh materials.000. Brooding Proper brooding temperature is required to keep the chicks in comfort. CONTROLLED POULTRY HOUSE OF 30.000 sq feet requires 100 energy saver of 9 watts each i. CONTROLLED POULTRY HOUSE OF 30. The house should be fumigated before the birds.000 BIRDS 2010 Vaccination Vaccination can be provided through spray and drinking water. Disinfection It is essential to check all equipment and walls of the broiler house carefully that they are clean and washed with detergents. 12 . disinfectants.PRE-FEASIBILITY. The Project 3. Assumptions used for the product mix are as follows: Product Chicken Average Weight 1. 3.3. the cost of Price per Kg is 228/1. which will justify the fixed and operational costs. 120.com) 13 .ppapaknorthern. Source: Pakistan Poultry Association (www.000 birds is considered to be economically viable size.000 BIRDS 2010 3. Annually eight flocks of birds will be raised on the same premises of the farm. Proposed Capacity A Broiler farm of about 30.9 = Rs. An additional lag time of 10 days will be included for the cleaning and disinfection of the farm/house. The Product The proposed project should generate revenues from sale of chicken after they have been raised for 6-7 weeks in the Environmentally Controlled Poultry Shed. CONTROLLED POULTRY HOUSE OF 30.90 Kg Price 228 Hence.000 birds with raising seven flocks per year. all calculations have been based on a flock size of 30. In this pre-feasibility study.PRE-FEASIBILITY. 3. This pre-feasibility highlights the capacity and efficiency of Broiler Control House which covers all the required facilities for the fast growing broilers.2. Project Brief The Broiler Control House is a project of Livestock sector. in which day old chicks (DCO’s) are raised on high protein feed for a period of six weeks.1. 7 7 This price is taken as the current average market rate (2010). 600 Time required per Flock (Days) 35 Lag time required per Flock (Days) 10 Total Annual Production Capacity 244.000 BIRDS 2010 3. 32 Analysis attached in Annexure A 14 .PRE-FEASIBILITY. 1. 120 Sale price growth rate 10% Cost of 50 Kg Feed bag Rs. Product Assumptions8 Number of Flocks per year 8 Number of Birds per Flock 30.4.800 Shed Space Required per Bird (Sq.ft) Mortality Rate Average Rate per bird Broiler Sale price per Kg (Live) 5% 1.65 Rs.9 Kg Rs. CONTROLLED POULTRY HOUSE OF 30.600 Cost of Feed per Kg bag 8 0. 000 144.000 288.000 216.000 Doctor 1 12.5.PRE-FEASIBILITY.000 Total 11 98. The personal needed for the farm is as under: Description Required Personal Salary Per Month Salary for the Year Supervisor 1 24. vaccination and cleaning operations at the farm.000 BIRDS 2010 3.000 15 . These workers will look after the feeding.000 Electrician 1 10.182.500 180.000 Housemen 3 6.500 1.500 234.000 Watchmen 2 7. Manpower Requirements Skilled and Semi skilled workers are needed to manage the operation of a broiler farm of 30.000 Cleaner 3 6.000 120. CONTROLLED POULTRY HOUSE OF 30.000 birds. fire extinguishers etc. A full illustration is provided in Annexure C Description Amount PKR Flux Pan feeding.06 Alu 780.926.300. This technology for feeding.000 BIRDS 2010 3.000 546. Farm Equipment In order to make sure the birds are being fed properly and in a timely manner the following farm equipments and technology have been identified. 16 . Tope screw nipple drinking 2. 6.000 each) Evaporative cooling pads (91 required at Rs.000 & other miscellaneous expenses10 9 Installation cost 250. CONTROLLED POULTRY HOUSE OF 30.000 system with BD sile (one house)9 Exhaust fan with 1 NP Motor type EOS50 1.000 Minimum ventilation system (1 required) 680.6. shoes.000 Total 6.com/ 10 Equipments (Drinkers & Feeders for chicks) and trays. 60.000 each) Heater type combi term 140E (1 required) 420.000 Rates have been taken from Cumberland Poultry Services: http://www. drinking and handling of birds is most suitable for a high tech.000 Cost of Uniforms. heaters.PRE-FEASIBILITY.000 Electrical control panel (1 required) 250. Controlled poultry house. bio-security equipments 750.cumberlandpoultry.000 Generator 50 – KVA (Perkins 1104A-44TG1) 950.000 (13 required at Rs. 000 600 12.640.000 Description Area (Sq.) Cost (Rs.000 800 800. Land and Building Description Area (Sq.000 BIRDS 2010 3. / Sq. 11 Includes changing room 17 .000.000.000 Office Block11 1.000 Feed Store (30x30’) 1.200 1.00 Room for Guards & Workers 1.000 Boundary Wall (6 Feet High) 500.000 1.200 1.ft.000 Total 16.) Cost Total Land 1 Acre 1.ft.000 Store Room 250 800 200.) Total Shed Space (400x50’) 20.000 Gallon 20. CONTROLLED POULTRY HOUSE OF 30.000 Water Container 1.PRE-FEASIBILITY.000.000 1.ft.100 1.000 Generator Room 200 400 80.7.200. Mode for Acquiring Land It is assumed that the land available will be on a lease (on a subsidised rate) in the locations mentioned below.000 3.1.320.7. Total Amount Cost of Day Old Chicks 52 1.500 Cash 878.7.PRE-FEASIBILITY. Proximity of the farm to the city enables the farmer to have a quick communication with the market for the purchase of Day Old Chicks.774. 3.500 Total 5.7.3. farm inputs (feed.8. Dhabeji. areas like Gharo.9 Kg . Preferred Locations – Sindh Suburban and rural areas around the major cities of the country are the suitable areas for setting up a poultry farm. Hence.2 Kg weight Salaries (For one month) 98. Bhambhore. right from the selection of the site to the final stage when the birds are sold. Working Capital Description Rate in Rs. CONTROLLED POULTRY HOUSE OF 30. 3.305. and selling of mature birds. The farm should be located at a place where transportation of birds and feed can be handled easily.000 BIRDS 2010 3.720 18 .020 (Broilers 30. etc. Infrastructure Requirement Poultry's farming needs to be handled tactically. Setting up a farm at an isolated place will minimize the risk of disease.600) Feed for 1st flock of birds days to gain on average 1. Karachi and Hyderabad are identified as a prime location for this project.591.2. The entrepreneur should make sure that the following things are available at the farm site before setting up the farm: Electricity connection & drinking quality water.200 110 per bird for 35 3.). 19 .1. etc and one month’s salary of the staff.PRE-FEASIBILITY.640.774. In addition to this.720.590. 5. transport and fuel expenses Total Investment PKR 29.500 Total Working Capital 5. Project Economics Capital Investment Amount in PKR Land 1. a sum of Rs. 29.000.000 Building/Infrastructure 15. vaccines.000 birds established in a purposebuilt controlled shed needs a capital investment estimated at Rs. The total project cost is estimated at Rs.896.774.816. utilities.720 **Inventory & Expenses include salary for one month. one flock of birds.926.220 Cash in Hand 878.e.000 for construction and purchasing machinery & equipment.720 is required as initial working capital.000 Total Capital Costs 23.000 BIRDS 2010 4.000 Machinery & Equipment 6. The Financial Analysis 4.816.720 An Environmentally Controlled Poultry House with a population of 30. CONTROLLED POULTRY HOUSE OF 30.000 Furniture & fixtures 250. fodder. which should be used for purchasing day old chicks and other inputs like feed. 23. raw material i.000 Working Capital Amount in PKR Inventory & Expenses** 4.590. A list of financial institutions willing to facilitate such projects in given in Annexure B. The bank will charge a rate of at least 20% on financing per annum plus this need to be backed by 200% collateral . Initial Financing Amount in PKR Debt 50% 14.1.000 BIRDS 2010 4.2.360 4.795.2.360 Equity 50% 14.795. Debt Assumptions Debt Tenure Interest Rate on Long Term Debt Debt Payments 5 Years 20% Quarterly 20 .PRE-FEASIBILITY. CONTROLLED POULTRY HOUSE OF 30. Financing Option Looking at the current market trends lending of up to 50% could be available on these projects. 191.888 3.016 12. entertainment.986.240) Operating Profit 5.849.410 2.700) (2.837 70.100 7.575.408 1.573.767 1. etc. janitorial services.194.700) Sub Total (4.809.700) (2.826 General administration & selling expenses Administration expense Communications expense (phone.794.4.594) (35.000) (1.801.3.200) (5.291 1.454 15.450) (59.973.182.986.336 13.440.697.440.776) (13.986.500) (54.320 77.885) Depreciation expense (2.436 8.363 6.320) (4.193 4.242) (1.176) (31.606 4.430.282) (4.124) (6.895) (65.000) (55.175.884 1.080 58. electricity.500) (66.000) (60.198.337.250 9.986.872 (1.160) (29.529.739) (6.149 12.258.880.540.450) (59. consultants. diesel.425 3.) Professional fees (legal.795.986.513.205) (45.364.134 10.515 Net Profit Before Tax 2. mail.133 498.093.968.366.604.453 Cost of DOCs (12.724.632 Less Financial Charges 2.200) (1.711.117 Provision For Income Tax Net Profit/Loss After Taxes 966. fax. etc.300.566) (50.665) (13.411 8.000) (49.391.700) (4.700) (2.069.572.) .488 64.881.618 4.880.070.) Office expenses (stationary. audit.536. spray etc) (26.084.115.992.000) (5.038) (4.475.900) (4.999. internet.SBI Projected Income Statement Year 1 Year 2 Year 3 Year 4 Year 5 Revenue from Sales (Birds & Empty Feed Bags) 53.550) (73.500) (54.028 6. Projected Income Statement Statement Summaries EC Poultry House .556.730.762.298) (14.700) (2.853) (38.220) (1.435.895) (65.800 11.907 2.000) (49.885) (45.746. etc.120) (12.922.431 17.279) Gross Profit 9.438.263) Cost of Feed per annum Cost of other goods (vaccination.332.653.780.586.108.895.699.308. 487.368.700 2.656 3.913.134 3.700 2.368.310 15.035.222.931) (2.590.831) (2.016.824 6. Projected Cash Flow Statement Calculations Poultry .538) (576.392 6.720 (1.500 2.816.852) (3.404.480.333.207) (4.360 (1.404.310 15.Preoperating cost - 2.156 6.618) (698.231.098 878.795.000 BIRDS 2010 4.198.363 6.500 3.333.986.826 Add: Depreciation expense Amortization expense .795.220) 4.852) (3.368.517.845.592 5.986.156 6.327.421.222.PRE-FEASIBILITY.134 21.231 22 .896.500 3.257.700 2.108.070.425 3.926) (634.881.500 878.404.637 14.156 6. CONTROLLED POULTRY HOUSE OF 30.220) (524.700 2.445 8.470.231 Cash balance brought forward Cash available for appropriation (23.470.222.000) Dividend 0 0 0 0 0 0 Cash carried forward 878.411 8.700 - - - - - Inventory Cash provided by operations (4.310 15.343.889) (4.587 5.146.231.718 10.539) Operating activities Financing activities Change in long term debt Change in short term debt Issuance of shares Cash provided by / (used for) financing activities Investing activities Capital expenditure Cash (used for) / provided by investing activities (23.896.718 10.517.031 10.831) (2.986.986.618 4.000) Net Cash 878.845.421.913.795.539) 14.360 - - - - - 29.529.718 10.207) (4.134 21.4.562 4.SBI Cash Flow Statement Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Net profit - 1.421.986.816.931) (2.096.080) (767. 914 12.800 4.000 10.036.795.000 1.500 Building/Infrastructure Machinery & Equipment 15.661.403 24.931 2.384.000.176 38.620.547.425 3.913.231.002 29.931 2.529.108.845.498.470.000 Furniture 250.411 8.200 8.076.831 2.716 38.500 Total Assets 29.300 17.209.000 62.701.590.000 12.720 8.882.512.220 5.156 6.470.845.000 1.498.997.758 5.389.207 4.222.632.716 38.820.785 19.926. Projected Balance Sheet Projected Balance Sheet Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cash & Bank 878.360 12.368.333.402 17.600 14.512 34.472.363 6.271 Total Current Assets 5.214 30.360 16.498.302 7.795.000 1.002 31.231 Inventory 4.231.770.190.512 34.766 30.155.746 4.389.134 21.948.842.881.785 19.816.795.310 15.000. CONTROLLED POULTRY HOUSE OF 30.330.598 7.420.590.766 30.539 - 14.516 29.214 30.795.502 Land 1.500 100.600 2.852 3.070.382 8.500 3.472.540.517.360 14.615.207 4.855.795.892.403 24.000 1.198.000 7.000.333.000.209.000 14.000 137.002 Current Asset Fixed Asset Pre-operating cost Liabilities & Shareholders' Equity Shareholders' Equity Paid-up capital Retained Earnings Total Equity TOTAL CAPITAL AND LIABILITIES 23 .400 1.098.718 10.640.618 4.429 10.720 29.385.000 212.360 16.200 - Total Fixed Assets 23.539 Long Term Debt 14.190.000 20.896.612 22.892.869.826 14.000 5.000 1.500 175.590.000 BIRDS 2010 5.000 6.404.366.PRE-FEASIBILITY.831 2.000 9.900 11.000.684 6.751.620.002 31.539 Accounts payable - - - - - - Total Current Liabilities - 1.176 1.829.720 29.590.774.002 Current liabilities - 1.913.421.661.852 3.5.000.231.642. 530 765 33.197.160 24 .600 No.070 Net birds after Mortality for the year 232.020 26.530 107.000 BIRDS 2010 Key Assumptions Net Bird Calculation – Flocks/Year Total birds per flock 30.000 1. of birds per flock 30.660 459 36.700 3.600 = 1.720 306 37.305.PRE-FEASIBILITY.320 29.070 3. CONTROLLED POULTRY HOUSE OF 30.440.000 Excessive birds @ 2% of Birds 600 Mortality in Birds @ 5% of 30.538 Net birds after Mortality per flock 29. of Birds Total Mortal Birds During first two weeks Mortal birds @ 50% of Total Mortality During 3rd and 4th weeks Mortal birds @ 30% of Total Mortality During 5th and 6th weeks Mortal birds @ 20% of Total Mortality Cost of Feed Consumed by Mortal Birds Per Flock Cost of Feed Consumed by Remaining Birds Total Cost of Feed Consumed by the Birds Per Flock Total Cost of Feed Consumed by the Birds Per Year Amount in PKR 1.560 Net Bird Calculation – Cost of Feed Description No. e. Price of Empty Feed Bags – Rs.90 Vaccination.PRE-FEASIBILITY. CONTROLLED POULTRY HOUSE OF 30.) 4% of administration expense Professional fees (legal. etc. Medication and Disinfection Cost per Bird (Rs.) 1. consultants.) 6 Feed Price per Bag (50 Kgs) Cost of Feed per Kg – Rs.445 32 6 25 .08% of revenue Depreciation Assumptions Depreciation Method Straight Line Method Building depreciation rate 10% Machinery & Equipment depreciation rate 10% Office Equipment depreciation rate 10% Furniture & Fixtures depreciation rate 15% Cost of Goods Assumptions DOC (Day Old Chicks) (Rs.) 0. Feed required to gain 1 Kg weight (Kgs. 1.000 BIRDS 2010 Expenses Assumption – Project Income Statement Communication expense 4% of administration expense Office expenses (Misc.) 52 Feed Conversion Ratio (FCR) i. audit. 000 BIRDS 2010 Growth Rate of Goods Sales Growth Rate 10% CGS Growth Rate (DOC.PRE-FEASIBILITY. Vaccine & Medication. Litter & Spray) 5% Cost of Feed Growth Rate 5% Salaries Growth Rate 10% Electricity & Diesel Growth Rate 10% 26 . CONTROLLED POULTRY HOUSE OF 30. 000 BIRDS 2010 Annex A The product assumptions are based on real time data derived from useful resources and poultry associations in Pakistan.65 sq. Total Annual Production Capacity Total birds produced in an year will be 30. ft.600 birds as it will be viable to raise them in the ECH proposed location/area Time required per flock 35 days is approximately estimated to raise the birds i.PRE-FEASIBILITY.600 x 8 (flocks per year) = 244. Hence. Production capacity utilization The plant/shed would be used to its fullest capacity throughout the year apart from the days when it be closed down for cleaning i.000 birds) Lag time required per Flock (Days) 10 days are required to clean. This increase keeps in view different factors like quality of chicken. as conducted in previous studies. other economic factors like inflation. which will be raised 8 times in an year with a raising period of 35 days (45 days including lag time) Number of birds per flock It is estimated that a flock will contain 30. 27 .600 birds i. Sale price growth rate Keeping in view the past trends it would be viable to say that there will be a 10% increase in the sale price of the chicken. paint & fumigate the farm/shed before the next lot is brought in.ft) Recent survey has indicated that these days Day Old Chicks requires very little space. one flock (30.560 Shed Space Required per Bird (Sq. A breakdown of the assumptions is explained below: Number of Flocks per year A flock will contain 30.800 – morality rate of 5% = 232. CONTROLLED POULTRY HOUSE OF 30. this figure is taken initially and the construction and area will be build up according to these details. With the help of new technology and machinery the lag time has been brought down to 10 days from 15 days. Day Old Chicks.e. taxes etc.e. bird weight. Lag Time.e. But as they grow and after 5 weeks of feeding the total space required by a bird would be 0. 000 BIRDS 2010 Annex B Name of Financial Institutions ZTBL Khushali Bank Ltd Habib Bank Limited Rozgar Microfinance Bank ltd Bank Al-Falah Limited Tameer Microfinance bank ltd Askari Bank Limited Kashf Bank Limited United Bank Limited Muslim Commercial Bank 28 .PRE-FEASIBILITY. CONTROLLED POULTRY HOUSE OF 30. 000 BIRDS 2010 Annex C FRONT INSIDE SIDE CONTROL ROOM 29 . CONTROLLED POULTRY HOUSE OF 30.PRE-FEASIBILITY. Phone: +92-41-2577171-2 Fax: +92-41-2517474 30 .99207515 Email: info@sbi. Bahria Complex II.Pakistan Tel: (92-21) 9206462 Fax: (92-21) 9206461 SMEDA 5 TH Floor. Humayun Road
[email protected]. Karachi . Murree Road. Sindh Assembly Building Karachi – Pakistan Tel: 021 – 99203291 SUPREME FEEDS (PVT.pk K&N 160 Banglore Town.000 BIRDS 2010 IMPORTANT CONTACTS SINDH BOARD OF INVESTMENT Government of Sindh st Block B. 2-A.T. Pakistan Tel: +92-51-9203307. Islamabad . Faisalabad. Head Office: 176-Shadman 1 Lahore.gos. M.) LTD.gos. Pakistan Tel: 021 – 99207512 – 4 Fax: 021 . FTC Building Shahra-e-Faisal Karachi. Murree Road Rawalpindi. Khan Road. Phone: +92-61-6224414 Fax: +92-61-6224414 FAST POULTRY FEEDS 12-KM Near Nai Sabzi Mandi Jhang Road. No. 9210351 Fax: +92-51-9210616 TRADE DEVELOPMENT AUTHORITY OF PAKISTAN (TDAP) 5th Floor.pk MINISTRY OF FOOD. Phone: +92-51-4427139 Fax: +92-51-4421203 JADEED FARMS (PVT. 48. 1 Floor. Sindh Sectt.Ahmed Block. 171 Shadman – II Lahore. Shahra-e-Faisal. Block "A". Shadman Chowk Jail Road.PRE-FEASIBILITY.) LTD. AGRICULTURE & LIVESTOCK B Block. D-98. 1-A. Finance & Trade Centre. 6.SINDH Barrack Number 90.pk Website: http://www. Satellite Town.org.) LTD.) LTD. New Garden Town Lahore Phone: +92-42-35835373-4 Fax: +92-42-35835371 HI-TECH POULTRY BREEDERS (PVT. Phone: +92-42-37522104-7 Fax: +92-42-37573106 BIG BIRD POULTRY BREEDERS (PVT. Shara-e-Faisal.34533623 .) LTD. Pakistan Tel: 021 . Karachi Pakistan Tel: (021) 111-111-456 Fax: (021) 5610572 Email: helpdesk. Opp. CONTROLLED POULTRY HOUSE OF 30. Lahore Phone: +92-42-37564503 Fax: +92-42-37564508 ISLAMABAD POULTRY BREEDING CO.34541419 LIVESTOCK & FISHERIES DEPARTMENT . 359 Shamsabad Colony. Phone: +92-51-4851280-84 Fax: +92-51-4851255 NATIONAL FEEDS LTD. Karachi-75350.37573045 ASIA FEED (PVT. Phone: +92-42 37551405-8 Fax: +92-42. Chandni Chowk Rawalpindi.Allied Commercial Plaza. Pak Secretariat. 230 Kh. BLOCK R JOHAR TOWN.. Near Macca Masjid. Phone: +92-51-4457561 Fax : +92-51-4511191 PAKISTAN POULTRY ASSOCIATION NOTHERN ZONE(NWFP PUNJAB& AJK) HOUSE# 24. 34543785 M. 43. Rawalpindi Phone: +92-51-4455362 Fax: +92-51-4847382 Golden Birds Poultry Agency S/No. Poultry Service Shop No. 3. 1st Floor. 41. Nr. Karachi. Karachi Tel: 021 . Murree Road..BS-38. Nazimabad No. F. Miran Muhammad Shah Road. United Centre Shamsabad.Block-7.36610436. Gole Mkt. 6614511 2010 31 . Jama Masjid.6. Chandni Chowk. Pakistan Tel: 0333-3002843 Amir Poultry Farm Shop No. Pakistan Tel: 6681019. 36681537 Dastagir Poultry Nadim Centre. Karachi Tel: 021 . 0300-2945245 Bismillah Chicken Centre Garden West. Goal Mkt. Karachi.Dastagir Post Office. Karachi Tel: 021 . Murree Road. Shahbuddin Mkt.. Pakistan Tel: 0333-2275130.32253309 Ghazi Brothers D-35.PRE-FEASIBILITY.34543579. KDA Scheme No.R. Nazimabad No.36333283. Rawalpindi. Nazimabad No. 1. LAHORE PAKISTAN Tel: +92-42-7550132-7572764.000 BIRDS SB POULTRIES SB PLAZA 48-C Satellite Town. Main Gole Mkt. Sdr. 3. CONTROLLED POULTRY HOUSE OF 30.B Area. 3. Karachi Tel: 021 . Chandni Chowk. 6614501 Data Poultry Farm Shop No. Karachi. +92-333 4888555 RUSTUM FEEDS Flat No. 57.Opp.