FINAL DRAFTING POULTRY.doc

7/31/2019 FINAL DRAFTING POULTRY.doc

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Introduction:


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NamuNamu Nigerian Enterprises is an indigenous enterprise that plans to go into the business

of Poultry Farming with primary focus on the following;

I. Broilers

II. Layers

III. Commercial Eggs

Our plan is to achieve a maximum production level of 10,000 broilers monthly and a 15,000 egg

production level daily in 10 months within the first years, as phase 1 of the plan. We proposestarting with 10,000 broilers per batch on a 4 times production cycle. The Layers will be started

with a first set of 10,000 in month 1 and another set of 10,000 in month 2 in order to achieve

continues egg production throughout the year.

Our target markets are the hotels, fast food outlets and discount department stores that have good

credit ratings and reputation for prompt payment. These will include;

Mr BiggsChicken N Fries

Amigo SupermarketSheraton Hotels and Towers

And a selected few

POULTRY INDUSTRY IN NIGERIA:

The poultry industry which has the potential of bridging the protein deficiency gap in Nigeria

through the production of meat and egg has in recent, witnessed a lot of development owing tofavorable government policies such as the ban on importation of poultry products, government

special emphases on agriculture in forms of grants, low interest rate loan packages, subsidies and

special insurance covers by Nigeria Agricultural Insurance Cooperation (NAIC) on agricultural

projects by Nigerians. The industry is estimated to worth over N1.5bn and growing.

VISION STATEMENT:Our vision is to be among the top ten leading poultry product suppliers in theNigerian poultry market.

MISSION STATEMENT:To provide good, healthy and affordable poultry products for our valued customers.

EQUIPMENT & HOUSING NEEDED FOR MANAGING 30,000 BIRDS:


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S/no

.

Equipment Qty Unit CostN

Total CostN

1. Chick tray feeders 30 250.00 7,500.00

2. Chick trough feeders 60 250.00 7,500.00

3. Chick drinkers 30 300.00 9,000.00

4. Buckets 6 600.00 3,600.00

5. Shovels 6 600.00 3,600.00

6. Bowls 6 300.00 1,800.00

7. Adult drinkers 50 500.00 25,000.00

8. Lanterns 30 300.00 9,000.00

9. Wheel Barrows 2 3000.00 6,000.00

10

.

Rain Boots 10 2000.00 20,000.00

11

.

Rubber Gloves 6 1200.00 7,200.00

12.

Deep Freezers 3 35000.00 105,000.00

13.

Saw dust 00.00 00.00

14.

Trampoline 1200yds

800.00 96,000.00

15

.

Wooden planks 10 80.00 800.00

16

.

Scale (20 kg) 2 3500.00 7,000.00

17

.

Disposable nose guards 2 200.00 400.00

18 Crates 500 20.00 10,000.00


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.

19

.

Debeaking scissors 2 50.00 100.00

20.

Thermometer 6 1200.00 7,200.00

21

.

Metal rakes 3 150.00 350.00

22

.

Construction of Pens Houses 8 110,000.0

0

880,000.00

23.

Construction of office & store 2 120,000.00

240,000.00

24.

Drilling of Borehole & Water Tank 1 150,000.00

150,000.00

25.

Miscellaneous 100,000.00

100,000.00

TOTAL 1,697,050.

00

Labour Requirements:

S/no

.

Required No.

Labour/Job Description MonthlyCost

(Naira)

AnnualCost

(Naira)

1. 1 Veterinary Doctor on Retainer-ship

N 20,000.00 240,000.00

2. 1 Farm Manager/ Bird Administrator N 15,000.00 180,000.0

0

3. 4 Farm Attendants/Cleaners N 10,000.00 120,000.0

0

4. 1 Store Keeper N 8,000.00 96,000.00


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5. 2 Security Guards N 8,000.00 96,000.00

Total 732,000.0

0

Purchase of Birds:

S/

no

.

Bird Type Qty Unit

Cost

(Naira)

Total Cost

(Naira)

1. 2 Weeks BroodedBroilers

10,000

200.00.00

2,000,000.00

2. 2 Weeks Brooded

Layers

20,0

00

200.00.

00

4,000,000.0

0

Total 6,000,000.00

Feed Programme for 10,000 Broilers to average weight of point of sale:

Week

sOld/

Age

Feed

Type

Feed

Consumption(KG)

Average

Weight (KG)

2 BS 20,000 0.04

3 BS 23,000 0.15

4 BS 26,000 0.23

5 BF 35,000 0.48

6 BF 44,000 0.87


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7 BF 50,000 1.30

8 BF 56,000 1.70

9 BF 70,000 2.10

10 BF 70,000 2.30

11 BF 74,000 2.50

12 BF 76,000 2.70

TOT

AL

556,000

Note:-

BS = Broiler Starters

BF = Broiler

Finisher

25 kg bag of poultry feeds is sold for N1, 350.00.

To determine the total cost of feeds consumed by 10,000 broilers within the 11 weeks they have

been fed by us, we have;

Total feed consumed (KG)

Weight of 1 bag of feed (KG)

Total feeds consumed by 10,000 broilers = 5,560,000 kgWeight of 1 bag of feed = 25 kg

= 556,00025 = 22,240 bags

Therefore:


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6 NF 44,000 No Lay 0.87

7 NF 50,000 No Lay 1.30

8/2

m

NF 56,000 No Lay 1.70

9 NF 70,000 No Lay 2.10

10 NF 70,000 No Lay 2.10

11 NF 70,000 No Lay 2.10

12/3m

NF 70,000 No Lay 2.10

4 m NF 70,000 No Lay 2.10

5 m NF 70,000 No Lay 2.10

6 m NF 70,000 Laying 40% - 50% 2.10

7 m NF 70,000 Laying 55% - 70% 2.10

8 m NF 70,000 Laying 70% 2.10

9 m NF 70,000 Laying 70% 2.10

10 m NF 70,000 Laying 70% 2.10

11 m NF 70,000 Laying 70% 2.10

12 m NF 70,000 Laying 70% 2.10

13 m NF 70,000 Laying 70% 2.10

14 m NF 70,000 Laying 70% 2.10

15 m NF 70,000 Laying 70% 2.10

16 m NF 70,000 Laying 60% - 55% 2.10

17 m NF 70,000 Laying 55% - 45% 2.10

18 m NF 70,000 Spent Layers 2.10


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TOT

AL

1,584,000

Note:-

SF = Starters Feeds

F = Normal Feeds

25 kg bag of poultry feeds is sold for N1, 350.00.

To determine the total cost of feeds consumed by 10,000 Layers within the 18 months they havebeen fed by us, we have;

Total feed consumed (KG)

Weight of 1 bag of feed (KG)

Total feeds consumed by 10,000 layers = 1,584,000 kgWeight of 1 bag of feed = 25 kg

= 1,584,000

25 = 63,360 bags

Therefore:

Cost of 63,360 bags = 63,360 X 1,350 =N 85,536,000.00

Associated cost of feeding for layer birds =N 85,536,000.00

Estimated Egg Production Table:

Dat

e of


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FirstLay:

.Tim

e of

Lay:

No.

of

Eggs:

Day Dat

e

1st

collectio

n

2n

collectio

n

3r

collectio

n

Total

Egg

s

No.of

Crat

es

No. ofSell-

able

Remarks

6t

m

7 m

8 m

9 m

10

m


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11m

12m

13m

14m

15

m

16

m

17

m

Sales Forecast For Egg Production Bath 1:

First Month:

Second Month:3

rdMonth:

4th Month:5

thMonth:

6th

Month

7th

Month:

8th

Month;9

thMonth;

10th

Month:

11th

Month:

12th

Month:13

thMonth:

14th

Month:

15th

Month:16

thMonth:

Estimated Sales of Eggs First Batch:


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Estimated Sales of Eggs Second Batch:

Estimated sales for Spent Layers:

1 kg at current market rate = N450

Weight of Spent layers = 2.1 kg

Therefore: 2.1 kg X N 450 = N 950

Estimated Mortality Rate: 5%

Therefore: 0.05 X 10,000 = 50010,000500 = 9,500 spent layers

Estimated cash flow for spent layers:

9,500 X N950 =N 9,025,000

CASHFLOW PLANS FOR FIRST 12 MONTHS:


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BROILERS: N 31,164,750 X 12 = N 373,977,000

EGGS: 5,000,000 x 12 = N 60,000,000

SPENT LAYERS: = N 9,025,000

TOTAL:N 443,002,000

Purchase of Feeds:

Considering the large quantity of feeds we need to purchased for the farm over a period of 1 year

and our subsequent growth plan, we propose to negotiated and signed a Memorandum Of

Understanding (MOU) and a Sales and Purchase Agreement with ECWA Feeds as one of thebest poultry feeds producers in Kaduna state to cover our poultry feeds needs for the first year.

This MOU and the Sales and Purchase Agreement are subject to review after the first year.

Proposed Sales and Purchase Agreement for Supply of Poultry Feeds entered into by Namu-

Namu Nigerian Enterprises and ECWA Feeds Nigeria Limited Kaduna:

The Propose Sales and Purchase Agreement was prepared by our legal advisers, Festus Keyamo

& Partners after a meeting the management of Namu-Namu Nigerian Enterprises and ECWA

Feeds Nigeria Ltd. Kaduna.

The basic terms are as follows:

1. That Namu-Namu Nigerian Enterprises shall make a total purchase of 22,240 bags (5,560,000kg) of poultry feeds over a period of 12 weeks from ECWA Feeds Nigeria Limited Kaduna.

2. That Namu-Namu has agreed to purchase same at a total cost of N30, 024, 00 from ECWA

Feeds Nig. Ltd. Kaduna.

3. That Namu-Namu shall make an advance payment of into an ECWA Feeds

designated account no. .. as first instalment payment.


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4. And a subsequent payment of N monthly over a period of 8 months in completion ofthe total amount in item 2.

5. That ECWA Feeds Nig. Ltd shall make available the daily requires of quantity 20,000 kg to

Namu-Namu Nig. Enterprises upon confirmation of payment to the aforementioned account initem 3.

6. That ECWA Feeds Nig. Ltd. Kaduna shall hand over the required poultry feeds to any personwho may be designated to receive the feeds after due identification and authorisation from

Namu-Namu Nig. Enterprises

7. That Namu-Namu and ECWA Feeds Nig. Ltd. Kaduna shall keep records of all supplies underthe basic accounting and book keeping principles obtained in Nigeria.

8. That all records relating to this transaction shall be reviewed on a monthly basis by the

account departments of the parties under these agreements.

9. That all deliveries shall be timely in view of the fact that the lives of the birds depends on

them.

10. In the event of any situation happening that may hinder the timely delivery of feeds by

ECWA Feeds to Namu-Namu, ECWA Feeds shall give an early notice of not less than 48 hrs to

Namu-Namu in writing.

11. In the event of item 10 happening, ECWA Feeds shall recommend alternative sources to

Namu-Namu to purchase the required feeds and such purchase shall be valued at current marketvalue and deducted from the next payment due to ECWA Feeds.

Risk Management:

We plan to use the Nigerian Agricultural Insurance Cooperation as our principal

insurer. This is because its a government backed organisation and it has a special scheme for

small and medium scale enterprises in Nigeria.

Insurance Model:

Internal Control:We are going to engage the service of KBS Consults for financial services, as they are well

experience financial managers. They will help set up a system of internal controls to make sure

that Namu-Namu will receive all of its income without any of it being siphoned off by waste,fraud, dishonest Employees or carelessness.


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We are also going to engage the services of ZARTECH a renowned name in the poultry farming

business as our consultants on bird management.

MARKETING PLAN:Our target markets are the hotels, fast food outlets and discount department stores that have good

credit ratings and reputation for prompt payment. These will include;

Mr Biggs

Chicken N FriesAmigo Supermarket

Sheraton Hotels and Towers

And a selected few

We plan to focus our initial marketing efforts on establishing strong customer relations from the

onset. The management will personally be responsible for contacts with our prospective clients.

Marketing representatives will be appointed to further boost our market. The salesrepresentatives shall operate on a percentage of total sales they are able to make in a transaction.

Packaging:Our products will be presented as a complete package of dressed, weighed, frozen and packaged

in a special polythene bag including supply.

The polythene bags will be engraved with the following;

Weight of the chickens. Name and Logo Farm address Contact details:

- Phone numbers


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- e-mail address

- Website

Associated cost:

10,000 Polythene bags @ N3, 500.00Printing of details @ N7, 000.00

TOTAL 10,500

Computer & Communication Tools:Taking advantage of the new trend in business with regards to information technology, we plan

to lunch a website as part of our marketing tools in order to showcase our farm products as well

as enable customers to place orders for any of our products on the web, through our online store.This will be of tremendous help since detailed pictures and other information could be viewed

without having to visit the farm. More so, information updates are readily posted on the site in amatter of minutes for potential customers.

Associated Costs:

Website design @ 100,000Web hosting @ 20,000 per annum

TOTAL 120,000

Computers will be used for record keeping, including accounting, medication administration, as

well as cycle schedules for production.

Associated Costs:2 computers @ 50,0001 coloured printer @ 13,000

1 LaserJet printer @ 18,000

TOTAL 81,000

Acquiring an office space:We plan to acquire an office space in the Abuja city after a 3 month period as a marketing office.

So as to enable the enterprise liaise with its marketers and customers.

Associated Cost:Two Room Office space in Wuse area @ 300,000 per annum

Furniture @ 80,000


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AMAC taxes @ 15,000 per annum

Telephone Line fixed @ 13,0002 Window Type A/C @ 40,000

TOTAL 448,000

ANALYSIS/SUMMARY OF COST:FIXED COST:

RECURRENT:

SOURCING OF FUND:REPAYMENT PLAN:BREAK EVEN POINT

PROFIT

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