Beruflich Dokumente
Kultur Dokumente
PREPARED BY
KATENDE EMMANUEL
2012/HD10/2123U
TABLE OF CONTENTS
TABLE OF CONTENTS.................................................................................................................ii
EXECUTIVE SUMMARY............................................................................................................iv
PART A: STRATEGIC PLAN.........................................................................................................1
Introduction......................................................................................................................................1
Vision...............................................................................................................................................1
Mission............................................................................................................................................1
Objectives........................................................................................................................................1
Core Values......................................................................................................................................1
ENVIRONMENTAL ANALYSIS...................................................................................................2
Market Trends..................................................................................................................................2
Market Growth.................................................................................................................................2
Competition.....................................................................................................................................2
CLIENTS, PRODUCTS AND MARKET ANALYSIS...................................................................5
Market Summary.............................................................................................................................5
Market Analysis...............................................................................................................................5
Market Demographics.....................................................................................................................5
Market Needs...................................................................................................................................5
INSTITUTIONAL ANALYSIS.......................................................................................................6
Organisational Structure..................................................................................................................6
Swot Analysis..................................................................................................................................7
Success Strategies............................................................................................................................8
PART B; OPERATIONAL PLAN...................................................................................................9
Production Plan................................................................................................................................9
Objectives........................................................................................................................................9
Strategies..........................................................................................................................................9
2
Assumptions....................................................................................................................................9
Key Issues........................................................................................................................................9
Precautions.....................................................................................................................................10
Marketing Plan...............................................................................................................................11
Objectives......................................................................................................................................11
MARKET SITUATION ANALYSIS.............................................................................................11
Target Markets...............................................................................................................................11
Positioning.....................................................................................................................................11
Marketing Mix...............................................................................................................................12
Marketing Research.......................................................................................................................12
HUMAN RESOURCE PLAN.......................................................................................................14
Objectives......................................................................................................................................14
Strategies........................................................................................................................................14
Hr Requirements............................................................................................................................14
INVESTMENT PLAN..................................................................................................................15
Objectives......................................................................................................................................15
Strategies........................................................................................................................................15
APPENDICES (FINANCIAL PLANNING).................................................................................16
Appendix I: Projected income statement (UGX)...........................................................................17
Appendix II: Projected Cash Flow Statement (Amount in UGX).................................................18
Appendix III: Projected Balance Sheet (Amount in UGX)...........................................................19
EXECUTIVE SUMMARY
PROJECT:
PROJECT LOCATION
CONTACT PERSON:
MS ARINAITWE MERCY
TEL:
EMAIL:
arinaitwemercy@yahoo.com
The name of the company is Mercys Quality Poultry Farm, which will be a sole
proprietorship. The company is currently not in existence and therefore the purpose of this
business plan is to kick start the business. The farm will be located in Kirinya - Bukasa,
Kyadondo East, Wakiso District.
The farm will start by supplying the poultry products such as eggs, within Wakiso district and
later supply neighboring districts, In the due course the farms products will be supplied and
consumed all over the country and also gradually expand internationally. Mercys quality Poultry
Farm will deal in broilers and layers producing eggs and later selling off the birds as off layers.
Layer birds are hens purposely reared for the production of eggs which starts normally at the age
of 5months from the time they are hatched. A tray of eggs costs UGX 7500. After a year of egg
production the birds (off layers) are then sold off for chicken meat production .An off layer bird
is sold at UGX10000.
Mercys Poultry Farm is looking forward to an increase in the prices of eggs and due to
increasing developments in the food and beverage industry, the growing demand for eggs in the
Southern Sudan and
The company aims at producing the best quality eggs and off layers and selling to all the
regions of the country.
The company is starting as a sole proprietorship with the aim of growing into a
partnership bringing on board national and international investors to expand the market.
CORE VALUES
Mercys Poultry Farm has the following as its core values:
Teamwork.
ENVIRONMENTAL ANALYSIS
MARKET TRENDS
The market for poultry products, particularly eggs is driven by the prices of poultry feeds. The
prices of poultry feeds are in turn driven by the climate, which affects the growth of major
components such as the maize brand. As such, the price eggs which is determined by the price of
poultry feeds, determines the demand.
Due to the East African integration more markets have opened up, more over with the customs
duty adjustments that allow free trade around the region, it is a great opportunity for Mercys
poultry firm to market and sell their products over a large market base and maximise
profitability.
There is an increasingly high demand for eggs in the Southern Sudan as well as in the local
Ugandan market especially in the food and beverage industry mostly bakeries. All these are
dissatisfied market segments as demand is exceedingly higher than supply.
MARKET GROWTH
The market for eggs and chicken is growing rapidly in Uganda and internationally
The two products are known to be highly nutritious and are highly recommended by nutritionists
for people of all ages such as children, adults and even the elderly.
Nutritionists continue to recommend white meat such as chicken, over red meat such as beef due
to scientific studies which show that high consumption of red meat causes health complications.
The northern Uganda and Southern Sudan have now attained political stability, therefore more
people are settling there and others setting up businesses there. There is therefore high demand
for food because of the increasing population as well as the fact that for years production of food
there was hindered by the war hence scarcity.
COMPETITION
There is stiff competition from companies offering the same products as that Mercys Farm
intends to produce. These companies are well established and are relatively big in terms of their
operations. for example Ugachick, Bulemezi, Kagoodo among others. These companies produce
2
a wide range of poultry products such as they produce eggs, broilers birds for meat, they sell off
layer birds, some farms such Hill top farm produce poultry feeds for their birds as well as for
sale to other poultry farmers, Ugachick also possesses an incubator they produce one day old
chicks for rearing and also sell to other poultry farmers, some farms also sell birds feathers to
decorators.
The mentioned poultry farmers produce quality products due to adequate resources that they
possess and are located in the out skirts of the city where they have land for expansion.
Their prices are fairly stable since they have reduced production costs by producing most of their
raw materials such as poultry feeds and production of a day old chicks.
They have outlets and distribution centres all over the city which enable them reach a wide base
of their customers.
They have penetrated the markets, for example Uga chick is known for production of quality
meat which is well packaged while Biyinzika is known for production of quality eggs. In
addition, they continue to market their products through advertising on televisions and local
radio stations.
These companies employ skilled labour for effective control of quality. The labour force is also
large so as to ensure timely delivery of products to customers.
However the firms have not spread out widely to open branches in the country as they are mostly
located in or near by Kampala leaving a lot of untapped opportunities such as proximity to
customers in the North, West, East and Southern parts of Uganda.
There is also upcoming competition from Quail farming which originates from West Africa.
Quails also produce eggs, which are physically different from those, produced by hens but are
more nutritious and used for a variety of purposes. For example quail eggs are known to be a
major component for manufacture of ARVs. Quails are currently being reared by not more than
10 farmers in Kampala, though their demand is growing rapidly mostly in international hotels as
well as traditional healers.
Quail eggs are the size of hen eggs making them easier to package and transport even over
long distances.
Most people are not yet familiar with Quail farming and its benefits but as soon as they get
acquitted with it then many farmers as well as customers are likely opt for it. Among the
advantages to farmers is that, a tray of quail eggs costs UGX 20,000 yet 1000 birds would feed
on a 60kg bag of feeds for a month as each bird eats approximately 2gms a day. The customer
would be interested in the high nutrient content.
INSTITUTIONAL ANALYSIS
ORGANISATIONAL STRUCTURE
Managing Director
Marketing manager
Production manager
Accounting manager
Employees
Managing Director
In charge of the overall running of the organisation and to make sure that the activities of the
organisation are driven by the inner goals and objectives in the right direction, as well as seeking
for smooth and broad running of the organisation.
Marketing manager
The marketing manager is in charge of screening products to the market and to see that strategies
set do favour profit maximisation of the organisation. He will be answerable to the managing
director.
Production Manager
The production manager is in charge of ensuring that products meet a set standard.
Accounting Manager
The Accounting manager is in charge of handling the finances of the business.
Current state and dynamics of the company
Mercys Poultry Farm which is currently not in existence is looking forward to an increase in the
prices of eggs and derivative products due to increasing developments in the food and beverage
industry, increasing prices of poultry feeds. However, it is expected that more people will
6
participate in poultry farming which will lead to fluctuation prices, poultry feeds are also likely
to increase.
Strategic plan
Mercys Poultry Farm will set up a maize garden on 2acres of land in Luwero district. This is to
cover up a major part of the poultry feeds expenses. The farm will therefore vertically integrate
to cover most of the input costs, hence increasing profitability.
SWOT ANALYSIS
Strengths
Mercys Poultry Farm will be able to produce the poultry feeds from maize grown on available
2acres of land in Luwero district; the farm will have skilled labor to handle the quality of the
farms products.
The farm will possess a delivery van that will be used in transportation of feeds and also delivery
of eggs to the distribution centre as well as customers premises according to the terms of sale.
The farm possesses premises of a capacity of 3000 birds. There are five structures each with a
capacity of 600 birds in place. The farm shall therefore incur no cost of construction or rent.
Weaknesses
The farm has limited funds, with only half the required funds available.
Lack of skilled labour force.
Opportunity
The Ugandan tax on agricultural produce is low compared to other areas of trade.
The formation of The East African Community hence a wider market where farm can sell her
products.
Threats
There is stiff competition from well known and established poultry farmers like Uga chick,
Kagodo, Bulemeezi and others.
SUCCESS STRATEGIES
Mercys poultry Farm will grow maize to cater for the poultry feeds, which is hiking at a high
rate that is maize brand.
Off layers are to be sold giving way to new brand of layers, in such a way that the process is
continuous.
Marketers will be with imparted more skills to handle markets.
PRECAUTIONS
At the age of 4months nests shall be constructed and installed in the poultry houses in
preparation for egg production. The nests help in easy identification and collection of eggs before
they are broken by the birds.
The farms operation manager shall ensure that the immunization schedule is strictly observed.
When the birds fall sick they will be separated from the healthy ones.
A veterinary doctor shall be contacted monthly to check on the birds as a preventive measure to
prevent poultry diseases.
10
MARKETING PLAN
OBJECTIVES
To create product awareness first in the area of operation and consequently in the entire
country.
11
MARKETING MIX
The Product is basically eggs which will be obtained after 5months of rearing the birds and after
a year of egg production, the birds will be sold off as off layers.
The process of egg production starts where the birds are 5months old. At this stage the poultry
feeds will be changed from growers mash to layers mash.
Nests will also be placed in the poultry houses where the birds con drop the eggs for easy
collection and to minimise breakages as much as possible.
Once the eggs are collected, they shall be placed on paper trays for easy and safe transportation.
Promotion shall be carried out through advertising on local radio stations and local magazines.
Also promotion discounts shall be offered to large scale customers, say 5% discount on every
100 trays of eggs bought.
The Price ;A tray of eggs will cost UGX 7500 a price which is slightly lower than that of
competitors who sell their eggs at UGX 8000 Per tray .This price was arrived at after a thorough
market research.
The people refer to all persons responsible for the growth and development of the business. This
includes human resources, who are involved in the production activities of the farm, the
customers who bring revenue to the organisation and suppliers of feeds to the farm. The farm
will ensure good relations with all people mentioned so as to ensure business growth.
MARKETING RESEARCH
The farm has carried out market research from various sources such as the internet, competitors
existing customers for poultry products so as obtain vital information on the current market
situation.
12
Among others, it was found out that most of the poultry farmers, do not deliver their products to
the customers premises.
Due to the East African integration more markets have opened up, more over with the customs
duty adjustments that allow free trade around the region, it is a great opportunity for Mercys
poultry firm to market and sell their products over a large market base and maximise
profitability.
There is an increasingly high demand for eggs in the Southern Sudan as well as in the local
Ugandan market especially in the food and beverage industry mostly bakeries. All these are
dissatisfied market segments as demand is exceedingly higher than supply.
13
14
INVESTMENT PLAN
OBJECTIVES
Within 4 of years operation, the farm should have expanded to a capacity of 10,000 birds
The farm will acquire an incubator so as to carry out the hatching process, in that way
production costs shall be reduced and also act as control measure for quality of the
chicks.
STRATEGIES
The farm shall reinvest after selling off the off layers and eggs so as expand the premises to
reach a capacity of 10,000 birds.
Having operated for four years, the farm shall obtain a loan from a recognised financial
institution at a fairly low interest rate to be paid back with in a period of 2 years. The funds
obtained shall be used to acquire an incubator.
15
FINANCIAL PLAN
ASSUMPTIONS AND RISKS
Mercys poultry farm, assumes that the prices of poultry products will remain stable.
It is also assumed that the entire farms produce shall have ready market and therefore be
sold off.
The farm also assumes that the marketing function shall be effective to create fast product
awareness and market share growth.
It is also assumed that all the chicks bought shall survive to maturity hence not less than
95% returns on investment is expected.
There is a possibility of the projected operating expenses being less than the actual
operating expenses. This may be due to unforeseen occurrences such as inflation.
The competitors responses are unpredictable. The competitors may for example reduce
the prices of eggs in to increase their market share, making it hard for the farm to use
pricing as a marketing strategy.
Some birds may die due to the break out of poultry diseases such as coccidiosis.
The Government may come up with policies that do not favour poultry farming.
The birds may not start laying eggs at the expected time (5months)
16
Year 2
Year 3
Year 4
Year 5
47,400,000
57,354,000
72,552,810
95,951,091
126,895,318
9,480,000
11,470,800
14,510,562
19,190,218
25,379,064
Gross profit
Other income
Fundraising activities
Less:
37,920,000
45,883,200
58,042,248
76,760,873
101,516,255
Depreciation
2,080,000
2,080,000
2,200,000
2,200,000
2,200,000
Indirect Expenses
27,916,800
28,763,328
31,161,578
34,563,593
42,450,809
7,923,200
15,039,872
24,680,670
39,997,280
56,865,445
7,923,200
30
% 2,376,960
15,039,872
24,680,670
39,997,280
56,865,445
4,511,962
7,404,201
11,999,184
17,059,634
5,546,240
10,527,910
17,276,469
27,998,096
39,805,812
1,052,791
1,727,647
2,799,810
3,980,581
10
% 554,624
Retained Earnings
4,991,616
9,475,119
15,548,822
25,198,287
35,825,230
4,991,616
14,466,735
30,015,558
55,213,844
91,039,075
17
Cash Outflows
Pre-operating
Expenses
Capital Expenses
Working Capital
Year 2
(6,223,680)
(1,421,040)
10,276,320
Year 5
27,026,931
53,609,919
47,400,000
57,354,000
72,552,810
95,951,091
126,895,318
41,176,320
55,932,960
82,382,100
122,978,022
180,505,237
2,823,600
802,956
1,226,037
1,887,461
2,496,168
37,396,800
40,234,128
45,672,140
53,753,811
67,829,873
6,800,000
8,700,000
1,000,000
Loan repayments
Taxation
2,376,960
Dividends
9,829,290
Year 4
7,563,610
Operating expenses
Total Outflows
Year 3
2,712,710
Fundraising activities
Revenue
Total Inflows
Year 1
4,511,962
7,404,201
11,999,184
17,059,634
554,624
1,052,791
1,727,647
2,799,810
16,500,000
42,597,360
46,103,670
55,355,169
69,368,103
90,185,484
(6,223,680)
(1,421,040)
9,829,290
27,026,931
53,609,919
90,319,753
18
Year 1
Year 2
Year 3
20,170,000
19,040,000
18,990,000
17,740,000
16,490,000
955,900
4,779,500
9,829,290
1,209,214
6,046,068
27,026,931
1,599,185
7,995,924
53,609,919
2,114,922
10,574,610
90,319,753
3,318,960
23,488,960
15,564,690
34,604,690
34,282,212
53,272,212
63,205,028
80,945,028
103,009,285
119,499,285
2,712,710
4,991,616
7,704,326
2,712,710
14,466,735
17,179,445
2,712,710
30,015,558
32,728,268
2,712,710
55,213,844
57,926,554
2,712,710
91,039,075
93,751,785
14,868,234
916,400
15,784,634
23,488,960
16,316,401
1,108,844
17,425,245
34,604,690
19,141,257
1,402,688
20,543,945
53,272,212
21,163,419
1,855,054
23,018,473
80,945,028
23,294,191
2,453,309
25,747,500
119,499,285
790,000
3,950,000
(1,421,040)
19
Year 4
Year 5