BULAWAYO CHICKS (PRIVATE) LIMITED

BUSINESS PLAN

2009

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 CONTENTS

1. EXECUTIVE SUMMARY 4

2. HISTORY 4

3. PRODUCTS AND SERVICES 5

4. MARKETS AND MARKETING

4.1) The Market 6
4.2) Industry analysis 6
4.3) Marketing Strategies 6
4.4) The Competition 7

5. OPERATIONS 7
5.1) Current status of the farm 8
5.2) Planned developmental activities 8

6. MANAGEMENT AND STAFF 8

7. FINANCIAL ANALYSIS
7.1) Purpose of loan 9
7.2) Analysis of fixed assets 10
7.3) Security 12
7.4) Projected cash flow 12

8. SWOT ANALYSIS
8.1) Strengths 12
8.2) Weaknesses 13
8.3) Opportunities 13
8.4) Threats 13

9. FUTURE PROSPECTS 14

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ATTACHMENTS

APPENDIX 1: CASH FLOW PROJECTIONS 15

APPENDIX 2: STAFF BREAKDOWNS 16

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BULAWAYO CHICKS (PRIVATE) LIMITED

BUSINESS PLAN 2009/2010

1. EXECUTIVE SUMMARY

 Bulawayo Chicks (Private) Limited, intends to acquire Elembe Poultry Products so as to expand its
operations by engaging in the following activities:-

 Raising broilers
 Sale of broilers as whole birds either frozen or live birds
 Sale of baby chickens (for peri-peri chicken or spicy basket chicken)
 Sale of chicken portions
 Sale of marinated chickens

 It will be Bulawayo Chicks (Private) Limited trading as Farm to Fork

 The farm is located in the Kensington area, the peri-urban of Bulawayo City, along Sussan Road off
Gwanda Road.

 The objective of the project are as follows:-

 To be one of the leading poultry producers in Matebeleland Region

 To export to the SADC region, especially Namibia and Angola
 To provide highly attractive poultry products
 To provide employment
 If acquired, it is projected to do 8 000 birds every week giving annual turn over of RANDS1 .3
billion.

2. HISTORY

 Elembe Poultry Products (Private) Limited is owned by Mr S.Patel and the company is legally
incorporated.
 The former owners mainly used the farm for poultry farming, thus the above mentioned activities of
the project would be well suited as the location is close to the city centre.

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 The business was until last year, the second biggest poultry meat producer in Matebeleland
province.

3. PRODUCTS AND SERVICES

 The following are the products to be provided

 Broilers
 Day Old Chicks
 Chicken Pieces (drum sticks, legs and breasts)
 Chicken mince
 Chicken sausages
 Chicken burgers
 Chicken liver patre

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BULAWAYO CHICKS (PRIVATE) LIMITED

BUSINESS PLAN 2009/2010

4. MARKETS AND MARKETING

4.1 The Market

 A market already exists as the project is mainly aimed at increasing the current operation
 Existing customers, i.e., Nationals Meats, (TM Supermarkets) and Willsgrove Supermarkets,
will be retained.
 Intend to open another outlet

 To run a chicken fast food outlet which will be operated in conjunction with the poultry product
sales (all depends on the size and location of the outlet)

 Marketing efforts are to be carried out on a local, national and international scale, involving
advertising through the newspapers.

4.2 Industry Analysis

 The poultry industry in Zimbabwe is highly developed and provides foreign currency,
through exports.
 As mentioned, under the executive summary, Bulawayo Chicks (Private) Limited is the only
commercial chicken breeders in Matebeleland province.

4.3 Marketing Strategies

 The following marketing strategies are to be pursued:-

 Value for money - provision of good quality broilers and poultry products
 Effective advertising

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  Quality control on the poultry produce

4.4 The Competition

 Competition is not expected to pose a threat, as there is currently no one in Bulawayo under-
taking chick breeding so close to the Bulawayo urban market.
 Bulawayo Chicks (Private) Limited management has extensive experience in this line of
business, which dates back to 2007.
 The major competitors in Bulawayo are White Star and Hamara Eggs. However ,these are
not into chicken breeding, they buy day old chicks from Harare.

5. OPERATIONS

 All operations are to be carried out at Elembe Farm, which is located 17 kilometres on the
Bulawayo/Gwanda road.
 The project is to be run by Mr. S. Mupfanochiya and Mrs. D. Mupfanochiya, who will appoint a
farm manager with the necessary skills, to assist him.
 In total the farm covers 14 acres on different pieces of land.
 The farm has sixteen fowl runs and an abattoir
 It also has cold rooms
 All operations will be carried out on the farm up to the point of sale.

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BULAWAYO CHICKS (PRIVATE) LIMITED

BUSINESS PLAN 2009/2010

5.1 Current status of the farm

 The farm has a high quality fencing right around

 There are four boreholes, which have the capacity to service the above-mentioned activities.
 An electric line is present that connects to the borehole site, with a transformer in place
 All fowl runs, abbatoir, cold room and the houses are electrified.
 The following are also present:-
 Reservoirs
 Tanks
 Fowl runs
 Land for growing vegetables
 Farm sheds

5.2 Planned Development Activities

 No further development activities are necessary except bringing back the farm into operation.
The necessary facilities are already in place.
 Additional skilled and semi-skilled staff need to be recruited
 There is need for electrification of six of the staff quarters

6. MANAGEMENT AND STAFF

 The company has two executive directors, namely Mr. R.S. Mapfanochiya and Mrs. D.
Mupfanochiya. The directors have vast experience with all the operations, which dates back to
1978. Mrs. D. Mupfanochiya is the Southern region representative of the Poultry Producers
Association of Zimbabwe.
 Hatchery foreman – with six years experience. Trained at Ross Breeders Zimbabwe
 Breeder foreman – with four-year experience. Trained at Ross Breeders Zimbabwe
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  Abattoir foremen – with fifteen years experience. Worked for Elembe Poultry Products before
joining Bulawayo Chicks (Private) Limited
 Head of Security
 Market Garden foreman

The staff compliment is made up of both skilled and semi-skilled staff, with the allocations of tasks
being allocated according to the level of skill required. The company’s organogram, providing the
number of subordinates, is shown on appendix 2.

7. FINANCIAL ANALYSIS

7.1 Purpose of loan

 The total amount of funding required is Rands60 000 000.00

 The purpose of the loan is for :-
 The acquisition of a farm which is fully equipped with
 Fowl runs with carrying capacity of 52 500 birds
 Abattoir with slaughter facilities of 1500 birds a day
 Freezing facilities of up to 100 000 birds
 The list of the assets is given on section 7.2 below

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BULAWAYO CHICKS (PRIVATE) LIMITED

BUSINESS PLAN 2009/2010

7.2 Fixed Assets

DESCRIPTION VALUE
Main House with Fixtures 250 000 000
Fowl Runs 390 000 000
6 Staff Quarters 36 000 000
5 Staff Quarters 15 000 000
Abbatoir 10 000 000
Main Farm House 15 000 000
4 Boreholes 16 000 000
3 Freezer Rooms 120 000 000
Fencing 120 000 000
1 Plucking Machine 9 000 000
1 Plucking Machine (2 birds per minute) 3 000 000
5 Stainless Steel Sinks 10 500 000
4 Stainless Steel tables 12 600 000
400 Plastic Containers/Freezing trays 3 000 000
8 Killing cones 10 000
3 Scalders 15 000
28 Steel Cages 245 000
2X200 litre geysers 7 500 000
25 wire-mesh baskets 105 000
2 Ice bag Holder frames 340 000
9 Large Galvanised tubs 180 000
Butchers Saw 5 000 000
1 Plastic Sealing Machine 850 000
1 Industrial Mincer 6 600 000
1 Electronic Printing Scale 12 000 000
46 Electric Heaters 3 680 000
5 Canopy Brooders 225 000
2010 Galvanised tubular feeders 20 100 000
1600 Drinkers (Automated bell) 6 100 000
Chick fats (325) 1 500 000
75 Chick feeders 150 000
5 X 5000 Litre plastic tanks 10 000 000
4 Boost Pumps 60 000 000
2 Pressure tanks 7 500 000
4 Concrete Reservoirs 12 000 000
1 Large Storeroom 23 000 000
1 Rota Cultivar 12 000 000
2 Storeroom s at Workshop 4 000 000

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8 Wheelbarrows 32 000
Garden Tools 3 600 000
1 5 Toner trailer 6 000 000
TOTAL 1 212 832 000

BULAWAYO CHICKS (PRIVATE) LIMITED

BUSINESS PLAN 2009/2010

7.3 Security

 The property to be acquired will be used as a security for the loan.

7.4 Projected Cash flow Statement

The projected cash flow statement was prepared based on the following assumptions:-
 All the figures pertaining to both sales and expenditure have been adjusted for inflation
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  The expected output from the farm is at least 8 000 birds per week.
 The selling prices have been based on the wholesale and retail prices per bird. A third
component of the prices is the in-between price of the two, which caters for bulk purchases
for direct use.
 Prices have been adjusted by 40% every month to cater for price increases
 The bulk of the costs relates to stock feeds. There is imminent shortage of soya, thus there
may be a need to import soya
 The projected cash flow statement is shown on appendix 1

8. SWOT ANALYSIS

8.1 Strengths

 The farm is strategically situated, on the outskirts of Bulawayo City and very accessible by
tarred highway
 Because of diversification of the activities, the generation of income is expected to be
complementary and the project will be self-sufficient
 Poultry products have a high demand, hence the market is readily available
 It can be easily and cheaply developed to meet export requirements
 The chickens bred are Ross Breeds, by Ross Breeders Zimbabwe, therefore there is full
veterinary back-up from Ross Breeders Zimbabwe, through Barrington Veterinary Care.

8.2. Weaknesses

 Non identified

8.3 Opportunities

 Supply enough poultry products to the local market

 To increase production and supply the regional market
 To increase the company’s asset base

8.4 Threats

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  Business is generally prone to disease outbreaks such as new -castle and infectious bursal
diseases (IBD). To counteract such diseases, there is need for vaccines and good
management. There is also need for a strict biological security (Bio-Security) programme.
 Necessary vaccines may have to be imported
 The present inflationary environment is continuously eroding the disposable incomes of
consumers, thus this could have a negative effect on the number of locals to purchase the
produce

BULAWAYO CHICKS (PRIVATE) LIMITED

BUSINESS PLAN 2009/2010

9. FUTURE PROSPECTS

 To develop the farm to meet export requirements

 To increase the number of broilers raised
 To obtain an Export Processing Zone (EPZ) licence and enhance the earning capacity

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 APPENDIX 2

BULAWAYO CHICKS (PRIVATE) LIMITED

BUSINESS PLAN 2009/2010

DIRECTORS

(ACCOUNTANT)

Breeder Abattoir
Hatchery Security Broiler
Operations
Foreman Foreman
Foreman Head Foreman

Clerk Driver

Twelve
Four Ten Four Six
People
People People People People

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APPENDIX 1

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APPENDIX 2

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