REARING LOCAL HENS FOR EGGS
Introduction
This business idea is for rearing of local hens for production of eggs. A hen
is a domestic fowl bred for eggs or meat. An egg is an oval shaped cell laid by
females of many different species, including birds. This business idea is
viable because you can get eggs, meat, hatch more chicks and the excess can
also be sold at your wish. This business idea aims at production of 162,000
trays of eggs annually and 1,350 off layers annually. The revenue potential is
estimated at US $ 520 annually. The initial capital investment cost for the
project is US $ 865. The first three months demand a lot of investment yet
returns are not realized. This idea needs a lot of patience.
Processes description
Chicks are kept in the brooder in which they are vaccinated and well fed on
chick mash for 2 months till they grow feathers. They are then shifted to the
main shelter in which they are fed for 3 months on growers mash. Cocks are then
introduced to help fertilize the eggs. Reduce the noise, feed them on greens, ensure
that water is enough and the hens will lay eggs.
Market Analysis
The demand for local eggs is very high and fetches a higher price on the
market. Eggs can be supplied to Supermarkets, Wholesale and Retail shops,
Institutions, e.t.c. There are several investors in this industry spread across
the Country.
Scale of Investment
1. Capital Investment Requirements in US$
|
Capital Item |
Units |
Qty |
Unit Cost |
Amount |
|
Feeders |
No |
50 |
2.5 |
125 |
|
Drinkers |
No |
60 |
1.5 |
90 |
|
Brooder |
No |
2 |
75 |
150 |
|
Stands |
No |
500 |
500 |
|
|
Total |
865 |
2. Production and Operating Costs in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct costs3: |
||||||
|
Chicks |
No |
0.5 |
0 |
0 |
62.5 |
750 |
|
Coffee |
Bags |
2 |
0 |
0 |
40 |
480 |
|
Feeds |
Bags |
7.5 |
195 |
2340 |
2,340 |
|
|
Medicine |
0 |
0 |
0 |
15 |
180 |
180 |
|
Egg trays |
Pcs |
0.75 |
0 |
0 |
8 |
100 |
|
Subtotal |
321 |
3,850 |
|
General costs (Overheads) |
|
|
|
Labour |
300 |
3,600 |
|
Utilities |
100 |
1,200 |
|
Administrative expenses |
100 |
1,200 |
|
Shelter (rented) |
250 |
3,000 |
|
Depreciation (Asset write off) Expenses |
36 |
433 |
|
Sub-total |
786 |
9,433 |
|
Total Operating Costs |
1,107 |
13,283 |
Production is assumed for 365 days per year. Depreciation assumes 2 year life of assets written off at 50% per year for all assets.
3. Project Product Costs and Price
Structure in US$
|
Item |
Period |
Output |
Unit |
Unit |
Total |
T/rev |
|
Eggs |
4 |
162,000 |
0.07 |
0.11 |
11,500 |
17,820 |
|
Off |
1 year |
1350 |
1.37 |
2 |
1,850 |
700 |
|
Total |
163,350 |
163,350 |
18,528 |
4. Profitability Analysis Table in US$
|
Profitability Item |
Per |
Per |
Per |
|
Revenue |
59 |
1,543 |
18,520 |
|
Less: Production and Operating Costs |
43 |
1,107 |
13,283 |
|
Profit |
17 |
436 |
5,238 |