Proposal for Establish Large Scale Commercial Poultry Farming

Poultry is one of the most promising enterprises in livestock sector. This is because this business requires little space and relatively small initial Capital per unit head compared to other livestock enterprises. This sample proposal on poultry has many strategies to improve the economic condition of the self-help group members as well as other sections of the society as a whole also train the women in income generative activities in order to generate enough money to support their families. To set up a demonstration centre where women will meet to train and seek information; Help women farmers to objectively focus on the needs of the family and the demands of the market and promote high value market-oriented crops and animals. Under this project, the main sale option will be selling off eggs and chicks daily.

Background

The ABC self-help Group is a local group in XXXXX sub-County in XXXXXcounty of Kenya established to improve the welfare of women and families through commercial income generating enterprises.

The group was established in March-20XX and it has now 15 registered members with over 20 more people applying for membership. With the establishment of ABC self-help group in XXXXXXX sub-county who are the main care takers of their families hope to increase their family income and supporting their children. Over 92% of people in County are small scale farmers who are under absolute poverty but have the drive to work only restricted by capital.

Project Strategies

Improve the economic condition of the ABC self-help group members as well as other sectors of society as a whole.
Train the women in income generative activities in order to generate enough money to support their families.
To set up a women demonstration center where women will meet to train and Seek information.
Train women farmers to acquire more efficient management skills in agricultural Production, harvesting, storage, processing and marketing.
Help women farmers to objectively focus on the needs of the family and the demands of the market and promote high value market-oriented crops and animals.
Providing improved varieties of planting materials and breeds of animals that are quick maturing and high yielding under average systems of management.
Community mobilization and sensitization of the people to actively participate in the various project components. In particular to encourage women farmers to voluntarily form small farmer groups/associations and societies based on the interest they themselves have in each enterprise.

Justification of the Project

There is an increasing demand for poultry meat and eggs and not only in XXXXX county but also in the other counties because of general improvement of standard of living of the people. Poultry is one of the most promising enterprises in XXXXX county livestock sector. This is because they require little space and relatively small initial Capital per unit head compared to other livestock enterprises.

There is easy availability of day-old chicks and animal feeds as well as animal drugs on the market. ABC self-help group can get qualified veterinary personnel who are available down to sub-county level.

Management

For any enterprise to succeed, proper and efficient management is essential in order torealize good returns on investment. Poultry farming is labor-intensive enterprise. For maximum production, efficient labor is required on daily basis.

Therefore, close supervision is necessary. Feeding, watering, cleaning and sanitation, observation of diseases and disorders, collection of products for market and arrangingan efficient system of sales must be well coordinated by a qualified manager

Personal Responsibilities

Project Board – During the transition period, the Board of Directors of the ABC self-help group shallfirst compose the Project Board in order to:

Direct the full implementation of the project;
Approve/Disapprove large financial transactions involving the project;
Possess the documents in the entry and exit of financial matters of theProject; and

Arranges quarterly meetings with the personnel who manage theproject. Manager makes sure of the proper implementation of the project;Temporarilydirectly the production and distribution/sale in the absenceof a production officer and marketing officer; Arranges the monthly meeting of the workers

Secretary/Cashier – Responsible for the clerical aspects of the project;

Assist the Manager in the day-to-day activities Hold the documents of the meetings, properties, and financial transactions of the project.

Poultry Caretaker – Responsible for the purchase of broilers, feed, growth, and Production of the chickens; Responsible for the care and safety of the chickens, including the poultry structures and facilities; Assumes other duties and responsibilities that may be entrusted by the Manager.

Market Aspect

Under this project, the main sale option will be selling off eggs and chicks daily.

Prospective buyers can collect the eggs from the farm gate or arrangements can be made with farm management to deliver the eggs to xxxxxcenter or any nearby trading centers. The demand for eggs in and around XXXXX county is higher. In addition, many supermarkets are selling eggs.

As for the market for eggs, the demand is far above the supply of eggs and is always a deficit. The rate at which the layers are increasing is much lower than the population growth rate; hence, the market for eggs is always growing.

Purchase of old day chicks

1,500-day old chicks will be procured from a well-established supplier. Each chick is estimated to cost Shs 100/=, hence, a total of shs 150,000/= will be required for this.

Investment Profitability Analysis

Notes and Assumptions

The assumed opportunity cost is 18%

A tray of eggs holds 30 eggs

The market selling price of a tray of eggs is estimated at shs 450/=

The market selling price of an off-layer is estimated at shs 400/=

The cost of feeds for the poultry enterprise is estimated at shs 50/= per kg. It is assumed that some of the feeds will be bought from the open market while Others will be mixed at the farm.

Year 0, in the poultry project is made of six months which represents the growing period before the laying of eggs begins.

A mortality rate of 5% of the birds has also been assumed.

The production rate of eggs per day will vary between 65% and 90% depending on the timeframe of the laying period.

The analysis period is ten years considered to have adequate to assess the investment.

Viability Indicators

Net Present Value (NPV): The NPV of a project is defined as the value obtained by discounting separately for each year, the cash net flows accruing throughout the life of the project at a fixed predetermined Interest rate. In this project, 18% have been used. The Net Present Value Of the Poultry project is Shs 155,800 /= Since the NPV of the project are positive, the projects are viable and hence worth undertaking for investment.

Internal Rate of Return (IRR): The IRR is the discount rate at which the present value cash inflows are equal to the present value cash outflows and the NPV is zero. The IRR indicates the actual profit rate of the total investment outlay. It also indicates the maximum loan interest rate that could be paid without creating any losses for the project.

Implementation of the Project

First Period – Preparation (First Quarter)

Look for workers. The workers shall consist of the following:

Manager (partime) 1

Secretary/Cashier (partime) 1

Poultry Caretaker 1

Preparation for the tools, equipment, and necessary documents.

Giving of orientation/training, including the methods/strategies in the operation of the Project.

Second Period – Implementation Proper (Second Third Quarter)

Purchase of the broilers and care for their growth

Distribution/Marketing of the chickens

THIRD PERIOD – Terminal Period (Fourth Quarter)