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Pre-Feasibility Study
RURAL POULTRY FARMING OF HIGH EGG PRODUCING SCAVENGER POULTRY
BREED OF NARC
A PROPOOR SMALL SCALE INTERVENTION
Contents
1. DISCLAIMER.......................................................................................................................................3
2. PURPOSE OF THE DOCUMENT.......................................................................................................4
3. INTRODUCTION TO SCHEME..........................................................................................................4
5. EXECUTIVE SUMMARY...................................................................................................................5
6. BRIEF DESCRIPTION OF PROJECT.................................................................................................5
7. CRITICAL FACTORS..........................................................................................................................5
8. INSTALLED AND OPERATIONAL CAPACITIES............................................................................6
9. GEOGHRAPHICAL POTENTIAL FOR INVESTMENT...................................................................6
10. POTENTIAL TARGET MARKET.....................................................................................................6
11. PRODUCTION PROCESS FLOW.....................................................................................................7
12. PROJECT COST SUMMARY............................................................................................................8
12.1: Project Economics............................................................................................................................8
12.2: Project Financing..............................................................................................................................9
12.3: Project Cost......................................................................................................................................9
12.4: Space Requirement...........................................................................................................................9
12.5: Machinery and Equipment.............................................................................................................10
12.6: Raw Material Requirements...........................................................................................................11
12.7: Human Resource Requirement.......................................................................................................12
12.8: Revenue Generation.......................................................................................................................12
13. CONTACTS SUPPLIERS, EXPERTS / CONSULTANTS...........................................................13
14. ANNEXURES...................................................................................................................................14
15: KEY ASSUMPTIONS......................................................................................................................15
2
1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a general idea and
information on the subject. Although, the material included in this document is based on data /
information generated from experiments and field testing by a team of relevant scientists; however, it is
based upon certain assumptions which may differ from case to case. The contained information may
vary due to any change in any of the concerned factors, and the actual results may differ accordingly
from the presented information. The PARC and its employees do not assume any liability for any
financial or other loss resulting from this memorandum in consequence of under taking this activity.
The prospective user of this memorandum is encouraged to contact qualified consultant/technical
expert, especially designated focal person(s) of this enterprise for reaching to an informed decision.
The
purpose
of
this
document
is
to
facilitate
potential
investors
in
3. INTRODUCTION TO SCHEME
Prime Ministers Youth Business Loan Programme, for young entrepreneurs, with an allocated budget
of Rs. 5.0 Billion for the year 2013-14, is designed to provide subsidized financing at 8% mark-up per
annum for one hundred thousand (100,000) beneficiaries, through designated financial institutions,
initially through National Bank of Pakistan (NBP) and First Women Bank Ltd. (FWBL). Loans from
Rs. 0.1 million to Rs. 2.0 million with tenure up to 8 years inclusive of 1 year grace period, and a debt:
equity of 90: 10 will be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh,
Khyber Pakhtunkhwa, Balochistan, Gilgit-Baltistan, Azad Jammu & Kashmir and Federally
Administered Tribal Areas (FATA).
5. EXECUTIVE SUMMARY
In livestock sector the poultry production has its own impact and value on the overall livestock market
and in the GDP contribution. By enhancing poultry production in the form of eggs and meat production
ultimately the per capita requirement of the protein in the country has been bridged markedly. Poultry
production is considered to be one of the most efficient and economical system of production of animal
protein. In Pakistan Poultry has been playing a vital role in bridging the gap between supply and
4
requirement of animal protein food of high biological value. Our poultry production is mostly
dependent on exotic commercial lines but still our indigenous poultry at small scale level contribute
32% share to our national requirement of eggs and 15 % share to meat production. Our indigenous
poultry possesses bright prospects for future development in view of easy and abundant availability of
all the requisite inputs such as land, labor and feed resources in rural areas and lower cost of
production as compared to commercial poultry. The need is to improve our indigenous poultry breed
because the Indigenous chickens have the advantage of being well adapted to the local environmental
conditions (hot cold humid dry and rainy weather) and can live as a scavenger bird and can be reared at
a low cost. PARC has the initiative in this scenario that PARC has developed a new crossbred having
the ability to live as a scavenger bird and lay more eggs as compare to our pure indigenous poultry
breeds. As the conventional system is going on the women keep the local breed in backyard poultry
rearing system and sale eggs in the village and earn money for them. Here PARC intervention for
women empowering is, instead of rearing the pure indigenous breed that lays not more the 70-80 eggs
per year why one should not keep the newly developed high egg producing crossbred chicken that can
lay 170- 180 eggs in a year in the same backyard poultry rearing system. This kind of practical model
already been established in the National Agricultural Research Centre (NARC) and the 15 days old
high egg producing crossbred chick are being supplied to different areas of Pakistan. If the
entrepreneur is near by the federal territory then the chicks can be purchased from the NARC. The 15
days old high egg producing cross bred chick can be supplied to far for long areas of Pakistan at the
rate of rupees sixty only. Due to its good egg production in comparison with the desi or local breeds of
poultry, people love to rear this breed, and already PARC have a farmers list benefiting from our
crossbred. The poor rural women can purchase the chicks from NARC and will rare the chicks up to 6
months of age at partial feeding. Only 25% commercial feed will be given to chicks up to 6 months and
remaining feeding will be done by kitchen waste and by leaving the birds as a scavenger. At the age of
six months the cockerels from the flock will be sold out at the rate of Rs. 300/- per cockerel and the
hens will be kept for the egg production for next one year. The feeding will be increased during the
laying period up to sixty percent of total feeding. The eggs will be sold to the local market and the
women will start earning gradually. By keeping good quality chicks the poor rural women will earn
more than before she will be earning by having more eggs in one year. After one year the female hens
will be sold out at the rate of Rs. 100/= per bird and the new flock will be reared for next cycle. Further
breeding is discouraged in this system and cockerel sholud not keep with the hens to achieve the
objective of having good quality eggs and discouraging uneven breeding practice. This model of
rearing high egg producing chicks can be applied to all five provinces of Pakistan (Sindh, Punjab,
Balochistan and Khyber pakhtunknwa, Gilgit baltistan and AJK). This idea has been generated for a
5
viable business because already the conventional rural poultry farming is practicing in rural area. By
doing this project one can earn better with less resources and better output. .
High egg producing chick production is considered for empowering women in rural poultry farming
business in this project pre-feasibility. This business is proposed to be located primarily in rural areas
of Pakistan. All the prospects of high egg producing crossbred chicks rearing, egg laying capacity,
disease resistance studies, climate resistance studies and marketing have been studied at Poultry
Research Section, Animal Products Improvement Program, Animal Sciences Institute (ASI), National
Agricultural Research Centre (NARC), Islamabad.
a viable business because already the conventional rural poultry farming is practicing in rural area. By
doing this project one can earn better with less resources and better output.
Target Market: The target market is every one in that rural area or that particular place. People love
to eat desi cockerel in the villages so it can be sold at a good price.
Employment Generation: In this business the rural women who will own this business is the
manager and the workers. But as the business will grow up the workers can be accommodated in this
business.
7. CRITICAL FACTORS
The commercial viability of the proposed project depends on the following factors:
Rural women can run this business in a better way so women in this business idea are
critical.
More successive business can be run in the areas where the temperature does not go very
high and very low.
Selection of the good variety or breed of the poultry for egg and meat production.
Very hot humid weather is not preferable as the egg storage will be critical.
Farm should have strong market linkages for effective disposal of produce.
Factors that influence the profitability of this business is good farm management, quality of inputs,
good marketing practice and environmental factors.
Following requirements have been identified for operations of the proposed business.
Table 2. Total Project Cost
Capital Investment
Construction of shed
Equipments
Total Capital Cost
Amount (rupees)
30000
4762
34762
The results in the tables show that the net present value, internal rate of return and benefit cost Ratio.
Returns on the business and its profitability are highly dependent on experience, suitable location and
good technical practices. The project will not be able to cover the potential demand of consumers and
recover payments, if these factors are not efficiently managed and will also lead to increased operating
cost.
Details
11111
100000
8%
8
11111.2
Amount(Rs.)
30000
4852
34852
76260
Total cost/Rs
12000.00
200.00
53750.00
8000
76350
Year
Eggs sale
Sale of male
bird
No.
8100
Sale
Price(Rs./Unit)
8.00
120
200
23940
First Year
Years
1
1
Yearly Charges(Rs.)
76800
24000
11
14. ANNEXURES
14.1: Cash Flow of the Project
Years
Purchase of
chicks
Vaccination
and
medication
Total Feed
Cost
Feed for
productive
hens (after
selling male)
management
cost
Electricity*tel
ephone utility
bills
Marketing
cost
10
12000
12600
13230
13892
14586
15315
16081
16885
17729
18616
200
210
221
232
243
255
268
281
295
310
26250
27563
28941
30388
31907
33502
35178
36936
38783
40722
27500
28875
30319
31835
33426
35098
36853
38695
40630
42662
24000
26400
29040
31944
35138
38652
42517
46769
51446
56591
2400
2640
2904
3194
3514
3865
4252
4677
5145
5659
1200
1320
1452
1597
87550
105153
110285
115757
1757
12159
5
1933
12782
6
2126
13447
9
2338
14158
7
2572
14918
5
2830
15731
1
Total Cost
Revenue from
male birds
sale( Rs)
Sale of
Eggs(No)
Price (RS/Egg)
Revenue for
eggs sale(RS)
111112
23940
26334
28967
31864
35051
38556
42411
46652
51318
56449
8100
8
16200
8
16200
9
16200
9
64800
136080
142884
150028
88740
162414
171851
181892
16200
10
15753
0
19258
0
16200
10
16540
6
20396
2
16200
11
17367
6
21608
8
16200
11
18236
0
22901
3
16200
12
19147
8
24279
6
57261
19207
61566
19207
66135
19207
111112
1190
8000
109922
-52661
8906
75041
70985
19207
14602
6
76136
19207
22216
2
81609
19207
30377
0
87425
19207
39119
6
93610
19207
48480
6
16200
12
20105
2
25750
1
10019
0
19207
58499
6
111112
-6810
38054
42359
46928
51778
56929
62401
68218
74403
80983
Total Revenue
Net Benefit
Installments
Cumulative
Income after
the
installment
111112
12
Present value
cost
Present value
of Revenue
Discount
Factor
87550
97364
94552
91892
144392
89376
14155
2
86996
13881
3
84745
13617
2
82615
13362
7
80600
13117
5
78695
12881
5
88740
150383
147335
0.93
0.86
0.79
0.74
0.68
0.63
0.58
0.54
0.50
13
8%
8 Years
1 Years
90:10
5%
10%
5%
10%
5%
14