CATTLE RAISING
Introduction
This profile envisages the establishment of a cattle ranch. Cattle raising is devoted chiefly to raising and breeding cattle, for beef or dairy products. Cattle have to be handled with a lot of care to avoid diseases. Cattle 'provide beef, milk. Skin, hides, Cheese, decomposed manure (fertilizers) and others, this may normally cost US$ 47,849
Production Capacity, Technology and Processing Description.
Project Product Costs and price Structure in US $
One acre should contain one animal when supplemented with additional feeds but 100 acres should contain an average of 60nimals.
Market Analysis Profitability Analysis
There is already market for Cattle products both on local and export market. The major key players include; JESA Farm, ZIWA Ranch, NAMALIRI Ranch, among others.
Capital Investment requirements in US$
|
Item |
Units |
Qty |
Unit cost |
Amount |
|
Firm House |
No. |
2 |
1,500 |
3,000 |
|
Paddocks |
No. |
5 |
1,200 |
6,000 |
|
Firm Equipment |
No. |
1 |
861 |
861 |
|
Land |
Acres |
100 |
300 |
30,000 |
|
Total |
39,861 |
One acre of land in rural area costs US$ 615 and in urban areas it costs approximately US$10,256 depending on whether it semi urban or urban. It is a small scale investment with capital investment of about US$ 47,850.
Requirements and Equipment
Direct Materials, Supplies and Costs in US$
|
Cost item |
Units |
Unit |
Qty/ |
Cost/ |
Cost/ |
Cost/ |
|
Direct Costs |
||||||
|
Animals |
No |
200 |
100 |
0.00 |
- |
20,000 |
|
Feeds |
Kg |
0.50 |
500 |
250 |
6,500 |
91,000 |
|
Drugs |
1.80 |
2. |
3.60 |
94 |
1,123 |
|
|
Pesticides |
litres |
2.50 |
2.00 |
1.00 |
90 |
2,160 |
|
Subtotal |
200.5 |
600 |
250 |
6,500 |
111,000 |
|
|
General Costs(Overheads) |
||||||
|
Administration expenses |
250 |
6,000 |
||||
|
Labour |
600 |
14,400 |
||||
|
Utilities |
220 |
5,280 |
||||
|
Depreciation |
830 |
9,965 |
||||
|
Miscellaneous |
150 |
1,800 |
||||
|
Subtotals |
2,050 |
37,445 |
||||
|
Total operating Costs |
8,550 |
148,445 |
Raw Materials Requirements
One
needs 100 acres of land which is then sub-divided into paddocks. Fencing poles,
hammer and barbed wire are needed to fence off the farm. Iron sheets are needed
for building the farm house while 5 large basins, 5 spades and about 5
wheelbarrows are needed for use in feeding the animals. Other requirements
needed include: thermometer, measuring tape and injection equipment. Producing
beef cattle on a small farm does not require elaborate or expensive housing.
One method is to allow animals to have access to an open air pole shelter. In
enclosed building, proper ventilation is important to maintain good health. An
effective working facility consists of a crush, pens, a head clump and squeeze
chute. The crush pen is needed for vaccinations and deworming while the neck
clamps in needed if you must aid a cow with calving. The pens and narrow alley
help confine animals that need to be handled and driven into the crush pen or
neck
Project cost and price structure in US$
|
Item |
Qty/d |
Qty/ |
Unit |
Prod/ |
Unit |
Revenue |
|
Cows |
100 |
100 |
1,484.45 |
148,445 |
1600 |
160,000 |
|
Totals |
160,000 |
Profitability analysis in US$
|
Profitability item |
Per day |
Per month |
Per year |
|
Revenue |
513 |
13,333 |
160,000 |
|
Less: Production operating costs |
476 |
12,370 |
148,445 |
|
Profit |
37 |
963 |
11,555 |