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business plan for government loan in chicken farming
 

Chicken Farming business plan

 
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Poultry House Business plans & Chicken House Plans

012 669 9908.......084 363 9914

Poultry House Business plan

poultry farming                                                                  chicken farming

Ph: 012 669 9908    Fax: 012 669 9910    Cell: 084 363 9914      info@chickenshack.co.za      www.chickenshack.co.za

 

General Company Description

Since its inception 1989 Chicken Shack Agencies has been developing, manufacturing & marketing poultry equipment suited to our unique African conditions. Having 20 years of experience in the industry, we have come to know & understand the climatic, environmental and social economic challenges the continent and the poultry industry faces.

Being aware of our social responsibility, we have noted the challenges Emerging Farms face when entering the poultry industry. Due to a lack of resources and opportunities, they have mostly only been successful in setting up self-sustaining production units.

In an attempt to address these challenges, the Chicken Shack Broiler Production Unit was developed.

The Chicken Shack Broiler Production Unit was designed to assist the Emerging Farmer in setting up a successful, commercially viable entity, supplying a much-needed affordable protein foodstuff and creating employment in the traditionally lower income rural communities.

The Chicken Shack Broiler Production Unit provides the Emerging Farmer with the necessary tools to setup a business with very little capital and so offers affordable alternatives to enter the agricultural environment.

The Chicken Shack Broiler Production Unit is available in various production sizes that cater to the Emerging Broiler Farmer’s specific needs.

Chicken Shack Broiler Production Unit is a comprehensive package that includes training, planning, equipment, financing and after sales service to ensure the economical viability and long-term sustainability of this project.

The Chicken Shack Broiler Production Unit was developed to assist the Emerging Farmer to enter the Broiler Chicken Industry on a small affordable scale and then upgrade as the business becomes more successful.

The Chicken Shack Broiler Production Unit includes a combination of any of the following products and services tailor made to suit the applicant’s specific requirement:

  • Planning
  • Training
  • Equipment
  • Housing
  • Advisory service
  • Planning

On receiving a successful application, the Applicant will receive the tools to do the strategic planning and research needed to determine the viability of the venture in his area.

To ensure the financial sustainability & success of a Chicken Shack Broiler Production Unit; it is important to ensure that the entire flock is sold at between 35 – 38 days of age, any period longer:

  • Affects the Feed Conversion Ratio (F.C.R) - and the chickens start to put on less weight in relation to the amount of feed they consume, increasing feed cost dramatically
  • If 2,000 chickens are produced in a cycle, but only 500 chickens per month can be sold, it will take 4 months to sell the flock.
  • Additional feed costs to keep the chickens alive will start eating into the profit.

poultry house
Table 1: Shows how feed costs increases daily after 35 days of age
It is advised that a production cycle be calculated at 49 days per cycle.

Days

Description

0 - 35

Growing days

36 - 37

Stock (Broilers) clearing, removing equipment & Litre

38 -39

Cleaning & disinfecting

40 - 49

Resting The chicken house

50

Start of next cycle

Table 2:  Shows a typical Production Cycle.

  • The resting period is essential to ensure that all germs & disease have died off before the next batch of chicks are reared.
  • Following theses guidelines it will be possible to complete 7.45 cycles in a 12-month period.
  • To allow for unforeseen circumstances calculations should be based on only 7 cycles per year.
  • If production time is lost, the profitability of the venture will suffer.  

 

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Table 3: Shows how much money you can loose if you complete 6 instead of 7 Production Cycles.
To ensure the continuous financial sustainability of the venture, a continuous flow of chickens need to be produced.

  • With one Chicken Shack Broiler Production Unit the Emerging Farmer will only have birds ready for marketing every 35 days.
  • The market buys chickens daily and they will look for other suppliers if they cannot be supplied regularly .
  • A new market will need to be established every time the birds are ready for selling.

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Table 4: Shows the advantages of a 7 house Production Cycle

  • It would make sense to rather to start with a few smaller Chicken Shack Broiler Production Units, rather than one big unit.
  • Chicken Shack Broiler Production Units will ensure a crop ready for marketing every week.

The applicant needs to complete The Chicken Shack Agencies strategy Plan, carefully & systematically to research the Broiler Chicken market in their area.

It is advised that these tools be used to gather information that will help the Applicant to set up a Production, Management, Financial and Marketing plan to ensure the long-term success of the venture.

On completion of the Chicken Shack Agencies strategy Plan the applicant will be advised on the most cost-effective & economically viable way forward.

The Applicant will be supplied with the necessary financial analysis to be able to plan the venture, and map out his route to become an economically viable Commercial Broiler Chicken producer.

 

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A yellow door house under construction by Chicken Shack staff – Brits.

 

    • Training

Chicken Shack Agencies partners with the Kwa-Zulu Natal Poultry Institute (KZNPI) to give the applicant the opportunity to educate himself with the necessary skills to increase his chances of becoming a Commercial Broiler Chicken producer.

The KZNPI is a registered Section 21 Company (not for gain) and was established in 1992 as an organization that would address problems specifically associated with poultry production in Southern Africa.

Its mission is to foster the long-term growth and sustainability of all role-players in the KZN poultry industry through skills development, strategic partnerships, co-ordination, information transfer and avian health management. The Institute is a centre of excellence for skills development in the poultry industry, building capacity in individuals, contributing to food security and poverty alleviation and assisting in creating a strong poultry industry through coordinated and strategic interventions.

Training Courses

  • NATIONAL CERTIFICATE – POULTRY PRODUCTION - NQF 3 (SAQA QUAL ID 49578) An AgriSeta accredited qualification
  • POULTRY PRODUCTION SHORT COURSES - Deals with basic poultry production, covering;
        • Brooding of chicks
        • Bird health, Bio-security, Common poultry diseases, Vaccinating, Chicken anatomy & physiology
        • Looking after birds: feed, water, litter management, lights and ventilation
        • Cleaning of chicken houses, Chicken house designs
        • Book keeping and keeping of farm records and performance targets

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Chicken Shack Agencies encourages an Applicant to complete at least a short course to have a basic understanding of the skills and requirements needed to enter the Broiler Chicken Production industry.

 

 

Hanging drinkers and feeders by CSA staff.

 

 

 

Supplied to the specific requirements of the applicant and can include:

Brooding Equipment

chicken house planGasolec heaters have the ability to heat without contact or air movement and so provide virtually instant warmth to animals regardless of the ambient temperature. The advantages - 

  • Heat can be easily and precisely controlled
  • Have a high efficiency, which leads to lower fuel cost.
  • Produce humidity, positively effecting bird health.
  • Create comfort zones for individual bird comfort.

start a poultry businessThe M8 Gasolec heater’s rigid durability and simple straight forward design, with no moving parts is ideal for these conditions (Stock Code 2001)

M8 High pressure gas regulator ensures the environment is control to the preferred heat setting (Stock Code 2006/M8)

Chicken Shack Agencies are the sole Gasolec agents in Africa and stock the complete range of spares & accessories to ensure quick & cost-effective maintenance.

start a chicken farmTemperature Control
Is one of the most critical elements for ensuring a successful production cycle Minimum Maximum thermometer accurately records the minimum and maximum temperature over any given time and may be reset with the magnetic key, or bottom. (Stock Code 2005) The Wet / Dry - Thermometer is a water-based instrument that measures relative humidity in rooms or other large areas.   (Stock Code 2008)

Drinkers
how many chickensThe Econo Drinker is a non-ballast (un weighted) drinker and is excellent value for money. The drinker has few working parts and comes standard with a rust free mechanism spring, hanging attachment, 3m PVC water inlet pipe plus shutoff clamp saddle valve. Drinking capacity : 100 birds per drinker (Stock Code 5004)

 

poultry farming south africaThis Broiler Drinker is designed for the complete broiler cycle by first operating off the ground for day olds and then being raised during the growing cycle. The drinker is fitted with a leak proof independent ballast which must be filled with water to stabilize the drinker. Drinking capacity: 100 birds per drinker (Stock Code 5003)

poutry house pricespoultry heatersKH Broiler Drinker made of a rugged high-impact plastic specially formulated to withstand the ravages of the active broiler house for any years. The unique feature of the Drinker is the ballast bottle, which acts independently of the bell and eliminates wear on the valve mechanism. Once a bird drinks as little as 10grams of water, this highly sensitive and maintenance free system is activated. Drinking capacity: 100 birds per drinker (Stock Code 2140450)

poultry drinkers10L Water Fonts can be used for day old chicks to end of life cycle. Molded from high quality durable materials & easy to carry. Drinking capacity: 1 fount per 100 birds (Stock Code 5007)

chicken heaters3 or 4 litre founts made from high quality durable materials. These two founts have interchangeable common sized bases. Drinking capacity: 3 founts per 100 birds (Stock Code 5006 & 5006/3)
Font Ring fits the 3 and 4lt founts. Used for first day only. Reduces drowning and prevents chicks getting wet. (Stock Code 5006/AD)
curtains for chicken houseFont Elevator lifts 3 or 4 lt font at the base 32mm off the ground. Prevents wood shavings from getting into the water prevents disease, keeps water, clean, Reduces labour costs (Stock Code 5006E)

small farmer business planDrinker Nipples - Impex Barneveld BV is a pioneer and specialist in drinking equipment in the poultry industry. Impex automatic drinking systems originate from efficient animal breeding automation and are perfected by our technical staff with more than 45 years experience in the coordination of automation for poultry, rabbit and pig management world wide — Chicken Shack Agencies is appointed as our sole distributors on the African Continent to install this automatic drinking system.       

 

emerging farmer loanFeeders
loan for small poultry farmerspoultry unitTube Feeder all metal parts of the tube feeder are electroplated to prevent corrosion. New features include feed flow adjuster, strong solid centre shaft and stronger stabilizing cross ribs. Feeding capacity: 3 Per 100 birds (Stock Code 4006)
The Anti Waste Ring clips over the tube feeder base. Struts prevent the birds from flicking feed sideways while the anti waste lip minimizes spillage. Spillage can be reduced by 20%. (Stock Code 4014)

Chick Feeder is made from a polypropylene material which makes it rigid and almost unbreakable. The specially designed ribs on the base of the tray reduce spillage while chicks are feeding. Feeding capacity: 3 trays per 100 chicks (Stock Code 4003)
laying houseThe Oval Hole Feed saver is specially designed to minimize spillage. The oval hole prevents the chick from flicking feed out of the tray. The feed saver is a modular system and can be easily clipped together to suit the farmers requirements. Feeding capacity: 4 feed savers per 100 chicks (Stock Code 40133)

broiler house

The CSA Feeder Pan was designed by Chicken Shack Agencies for South African conditions manufactured form high quality components to ensure durability in the toughest of conditions. C.S.A is the sole supplier of this automatic feeder system on the African continent.


 

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Chicken Shack Agencies are authorized agents & distributors on the for all the above mentioned products on the African Continent and stock the complete range of equipment spares & accessories needed by an Emerging Farmer to ensure their success in the Broiler Chicken Industry.

Silo installation by Chicken Shack Agencies.

 

buy day old chicks Some of CSA’s products.

Housing
Chicken Shack Agencies has developed various entry-level Chicken Houses to suit the specific requirements of the Emerging Broiler Farmer.

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Table 5: House Dimensions

chicken farming South AFrica
Chicken Shack Agencies would advise the applicant to house at least:

 

  • 10 birds per square meter.
  • The industry standard is to keep 15 birds per square meter in open semi controlled environmental houses.  

 

  • The Chicken Shack Broiler Production Unit  can be upgraded by adding ventilation fans and so increase production to 20 birds per square meter.

All Houses consist of the following:

  • A pitched corrugated iron roof
  • 2 x 6 meter walls enclosed with corrugated iron up to the roof and a door at the front.
  • 2 x open sided walls with a corrugated iron wall 60cm high. The 1,60m ventilation openings between the walls & the roof are enclosed with chicken mesh. The chicken mesh enclosed area is covered with 550gsm pvc material curtain system complete with winching equipment to ensure effective climate control.
  • Due to the excessive costs of flooring, the unit comes standard with 550gsm P.V.C. material groundsheet to ensure the house stays dry during a production cycle. The groundsheet is then removed at the end of the cycle to wash, clean & dry before it is laid in the house for the next cycle. This ensures the house stays dry and the bedding uncontaminated during the cycle.
  • Header Tank and manifold system for drinkers
  • Lockable hinged door – 1.5m or 2m wide – depending on your needs.

Optional Extras include:

  • Ventilation fans
  • Insulated roofing
  • Solar Lights
  • Store room inside front of house
  • Extended porch outside the front of the house
  • Free Range flaps.
  • Chick nets/ Security Fences
  • Rat boxes and brackets for poison
  • Feed bucket hooks.
  • Fire bucket hooks
  • Electrical box
  • Ventilation flaps at ends of house.
  • Concrete floor and aprons
  • Brooder hooks and curtains
  • Extra wide door with smaller inner door
  • Gutters and rain collection system
  • Temperature warning system (SMS based)

The applicant will be advised on the production unit & equipment best suited for their unique requirements and supplied accordingly.

Advisory Service

The key to the Emerging Farmer’s success lays in ongoing training and assistance. Chicken Shack Agencies  partners with various institutions & specialists to ensure top quality ongoing support:

  • Continuous follow-up visits by the Chicken Shack Agencies field Representative.
  • Follow-up Short Courses as presented by the by the KZNPI
  • An advisory service offered by the Poultry Information Centre communicating valuable, relevant and up-to date information and statistics to poultry producers of all sizes offering relevant services such as: online information, telephonic consultation as & when needed to solve any poultry production problems quickly and effectively.

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The intention of the Chicken Shack Broiler Production Unit is to open lines of communication amongst all participants and to assist emerging and new poultry producers – throughout South Africa.

 

  • Operational Management

Due to the short production cycle of Broiler Chickens and the negative impact small mistakes can have on the profitability, daily management & record keeping is extremely important.

The Emerging Farmer will be supplied with a complete system to for effective management & record keeping ensuring complete control and long-term success of the venture.

 

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    • Broiler Performance Targets

This information gives the Emerging Farmer access to tested and accepted industry production information.

This information is used to plan, forecast and measure performance to ensure acceptable production results.

 

This information is broken-down to daily figures to assist in the daily management of the Chicken Shack Broiler Production Unit to ensure daily control for maximum profitability.

See attached the Broiler Performance Target Charts

Days – shows the age of the crop

    • from the day placed
    • until 49 days of age

Remember the best results are achieved by reaching the respective results at 35 days of age.

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                                                                                  Broiler Mortality Rate

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Industry Mortality Percentage - Shows the acceptable daily mortality parentage at different stages of the production cycle

Accepted Number of Birds Dead during the Production Cycle - Projects the acceptable mortality numbers for a Chicken Shack Broiler Production Unit at different stages of the production cycle.

 

Example:

  • At 35 days of age an acceptable total number of birds dead for a 1,000 bird Chicken Shack Broiler Production Unit = 37 birds

 

  • At 20 days of age an acceptable total number of birds dead for a 500 bird Chicken Shack Broiler Production Unit  = 11 birds

 

  • These Mortality figures enable the Emerging Farmer to compare his daily figures
  • To detect possible problems before serious losses occur.

 

  • To measure his losses against industry standards to ensure it is at an acceptable level.

 Broiler Growth Requirements
day old broilers
Industry Standards Daily Weight – The daily weight gain of a single bird.

Industry Standards Total Weight– The total body weight of a single bird.

Daily Weight Gain in Kilograms
Projects the flock weight at different stages of the production cycle in a Chicken Shack Broiler Production Unit.

  • The mortality numbers are subtracted to ensure accurate weight projections.

 

Example:

  • At 35 days of age the combined live weight  for a 1,000 bird Chicken Shack Broiler Production Unit = 1,813.00 kg 

 

  • At 20 days of age the combined weight for a 500 bird Chicken Shack Broiler Production Unit = 371.00 kg 

 

  • The total weight gain of the different stages provides a guideline of how the birds should be growing
  • If the average weight is well below these standards problems can be identified and fixed before serious losses occur

 

  • Projection of possible income at different stages in the production cycle can be calculated.

 

Broiler Feed Requirements

free range eggsFeed is the most expensive cost and therefore the most important component to control to ensure a successful production cycle. If the feed runs out the bird can not grow and has a direct influence on profit.

Industry Standards Daily Feed – The daily feed consumption of a single bird

Industry Standards Total Feed – The total feed consumed by a single bird at a particular stage in the productions cycle.

Production Unit Feed Consumption – Projects the daily feed requirements of the flock in different stages of the cycle in a Chicken Shack Broiler Production Unit

Example:

  • At 35 days of age the daily feed requirement for a 1,000 bird Chicken Shack Broiler Production Unit = 166.00 kg.

 

  • At 20 days of age the daily feed requirement for a 500 bird Chicken Shack Broiler Production Unit = 49.00 kg.

 

  • The daily feed consumption at different stages in the production cycle provides a guideline of how much the birds should be eating
  • If the feed consumed is higher than these guidelines; possible problems can be identified and fixed before serious losses occur.

 

  • Projections of feed requirements can be made to ensure adequate feed stock levels.

free range chicken farming
Broiler Water & Temperature Requirements

Water is extremely important to cool the birds to ensure optimum growth takes place. A lack of water has a direct impact on the growth of the bird.

Industry Standards Daily Water – The daily water consumption of a single bird.

Industry Standards Total Water – The total water consumed by a single bird at a particular stage in the productions cycle.

Production Unit Water Consumption – The daily water requirements of the flock in different stages of the cycle in a Chicken Shack Broiler Production Unit .

Example:

  • At 35 days of age the daily water requirement for a 1,000 bird Chicken Shack Broiler Production Unit = 299 litres. 
  • At 20 days of age the daily water requirement for a 500 bird Chicken Shack Broiler Production Unit = 88 litres. 
  • The daily water consumption at different stages in the production cycle provides a guideline of how much water the birds will be drinking
  • It is important to ensure the flock has access to this required amount of water to ensure optimum growth
  • Daily calculations can be made to ensure sufficient water supply.
  • If sufficient water is not available plans can be made to increase the supply to avoid possible problems especially on hot days when water is important to prevent bird mortality.

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Daily Temperature – Projected in Degrees Celsius at different stages of the cycle in a Chicken Shack Broiler Production Unit

 

 

Example:
organic eggs

  • At 35 days of age the average temperature should be kept at  for a 21OC.
  • The house temperature is extremely important during the first 21 days of the cycle.

 

  • A variation in temperature can cause large stock losses.

Broiler House Record Card

This document is extremely important. All these questions need to be answered (House Number? Date Placed. Breed? Qty Placed? Hatchery? Mortality in Boxes? Day olds Weight? Comments?), and the information recorded to compare the following results:

  • organic chickenCompare industry standard to detect possible problems before they cause serious losses.

 

  • Performance statistics available to calculate future projections.

 

  • To have records available to refer to in future if problems arises.

See the Card attached (It is advised that copies of this document is made to have available for future use).

Date – Is important to use as reference to refer back to in a year’s time to see if results compare and show some improvement.

Age – shows the daily age of the crop.

    • from the day placed.
    • until 49 days of age.
    •  

Remember the best results are achieved by reaching the respective results at 35 days of age

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Mortality

buy chickensDaily Bird Death  – All deaths are to be recorded daily  .

Total deaths to Date – All mortalities of previous days are added together and recorded.

Motility % = Total deaths to date ÷ Birds Placed x 100. 

  • This percentage is to be compared with the Industry Standard for Mortality to detect problems as soon as possible.

 

Total Live Birds = Total Birds placed - mortalities

  • Birds should be counted and compare with this figure to ensure that no birds are stolen.

 

Feed

Daily Feed Used = Full Feeder - Empty Feeder

    • Weight the Empty Feeder
    • Fill the Feeder with feed
    • Weight the full Feeder
    •  

Total Feed Used – Add the daily feed used to the previous days feed usage.

  • This answer Should be compared with the feed target .

Target = Daily Feed Standards x the Total Live Birds

  • who sells chickensThis calculates the industry standard for the flock.

 

  • The actual feed consumed should be equal to this total.

 

  • Daily comparisons are important to ensure the flock is performing adequately.

 Feed in Stock – Is the total amount of feed in the feeders added to the feed stored.

  • Daily calculations are important to ensure that the feedstock is sufficient until the next delivery.

 Live Weight

Total Weight = Weigh a selection of birds ÷ number of birds weighed

  • Multiply the answer with the total number of live birds in the house.
  • This can be compared with the weight target

Target = Industry Standard Weights x the Total Live Birds

  • This calculates the industry standard weights of the flock
  • The flock weight should be compared with this target weight to detect irregularities

FCR

FCR = Total Feed Used ÷ Total Weight .

  • This should compare to the target of the industry standard to ensure the best results are achieved.

Temperature

  • The daily Minimum and Maximum temperature should be recorded and compared to the industry standers.
  • It is important that variation in temperatures are prevented to ensure the best results.
  • Temperatures should be controlled to meet industry standard to ensure the best results.

Monthly Financial Records

  • All the different cycles’ and or Chicken Shack Broiler Production Units’ monies received and paid out is recorded to calculate a complete picture of monthly profits and or losses.
  • These records a kept from the first of the month, to the last day of every month.

Date – The transaction are recorded daily to have a record to refer back to in future.

Description – The details of the transaction.

Cash Received – All cash received for sales and or financing of the project .

Cash Layout – All amounts of money paid out.

Cash Balance = Opening Balance (Balance after the previous transaction) + Cash received – Cash Layout

  • This figure should balance with the cash on hand or the balance in the bank.

Setup & Equipment – The amounts recorded in the Cash Layout Column; paid towards these costs should also be recorded in this column.

Production Costs – Includes all Cash Layouts for producing a market ready chicken such as (Old Chicks, Feed Vacancies & Medicine, Bedding Material and Other Production Costs).

  • If the cash layout was for these purposes, the amount recorded in the Cash Layout Column should also be recorded under the relevant heading.
  •  

Running Costs – Includes all Cash Layouts for running the operation and includes (Advertising & Marketing Materials, Bank Fees, Delivery & Traveling Costs, Electricity Gas & Water, Finance Repayment Installment, Salaries & Wages, Land Rent or Bond, Stationary & Office Supplies, Telephone and Other Expenses)

  • If the cash layout was for these purposes, the amount recorded in the Cash Layout Column should also be recorded under the relevant heading.

 

Totals

  • At the end of the month, all the columns should be added up to determine the cost of each Heading.

Total Income = All sales for the month are added in this Block
Total Production Costs = All Production cost totals for the month are added up in this block
Total Running Cost – All running cost totals for the month are added up in this column.

 The monthly Profit and/or Losses
Gross Income = Income – Production Costs
Net Income = Gross Income – Running Costs

Break even point

  • Of the venture can be calculated by adding new Capital Layout to previous month’s Capital Layout ,
  • Then Subtracting the Net Income for this Capital Layout total.
  • This figure will initially be negative.
  • Once this calculation starts moving into a positive amount, the Emerging Farmer should consider expanding the venture!

Cycle Production Costs

  • This document should be completed at the end of each production cycle
  • This document enables the Emerging Farmer to summarize each Chicken Shack Broiler Production Unit‘s performance per cycle
  • The Emerging Farmer is also able to calculate costs per bird to be able to evaluate this calculation with other cycles and Chicken Shack Broiler Production Unit Results

Cycle Performance
No of Birds Placed – Number of Birds Paced at the start of the cycle (From the Broiler House record Card).

Total Mortality – Total number of birds that died during the cycle (From the Broiler House record Card).

Mortality % - Percentage mortality for the Cycle (From the Broiler House record Card).

No of Birds Sold – the total number of birds sold for this cycle and form this Chicken Shack Broiler Production Unit.

Total Weight of Birds Marketed – The weight of all the birds sold added together.

Average Weight per Bird = The Weight of Birds Marketed ÷ Number of Birds Sold.

Feed Consumption (kg) – The total feed consumed during the cycle (From the Broiler House record Card).

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Cycle Income

Chickens – The total numbers of birds sold.
Litter Sales - for the complete cycle.
Income = Chickens + Litter Sales for this cycle.
Average Price per Bird = Total income ÷ No of Birds Sold

Cycle Costs

  • Calculated by adding all Production Costs including (Old Chicks, Feed Vacancies & Medicine, Bedding Material and Other Production Costs.
  • These are all the costs for this particular cycle, summarized against the relevant headings.
  •  

Gross Income = Income – Production Costs.

Average Gross Profit per Bird = Gross Income ÷ No of Birds Sold.

Running Costs – Calculated by adding costs for (Advertising & Marketing Materials, Bank Fees, Delivery & Traveling Costs, Electricity Gas & Water, Finance Repayment Installment, Salaries & Wages, Land Rent or Bond, Stationary & Office Supplies, Telephone and Other Expenses).

    • Most of these costs are paid on a monthly basis but can be relayed to cost per cycle by using the monthly costs ÷ number of days in the month x 49 days (No of days in the production Cycle).

Net Income = Gross Income – Running Costs.

Average Net Profit per Bird = Net Income ÷ No of Birds Sold.

Break even point of the Chicken Shack Broiler Production Unit  can be calculated by:

  • Adding new Capital Layout to previous month’s Capital Layout
  • Then Subtracting the Net Income for this Capital Layout total
  • This figure will initially be negative amount

The Chicken Shack Broiler Production Unit’s: systems, equipment and tools can equip the Emerging Farmer to become a successful Commercial Broiler Farmer. Provided he has the drive and vision to reach this goal.

For more information on the Chicken Shack Broiler Production Unit for financial projections, please feel free to contact us.                                        

Ph: 012 669 9908    Fax: 012 669 9910    Cell: 084 363 9914      info@chickenshack.co.za      www.chickenshack.co.za

 

 

BUSINESS PLAN
OF


YOUR COMPANY NAME
Reg. No. XXXXXXXX

GENERAL INFORMATION

 

  • Physical address

 

 

  • Postal address

 

 

 

  • Email address
  • Fax number

 

  • Phone numbers

 

 

 

  • Bankers details

 

 

: YOUR LOCATION

 

 

 

 

TABLE OF CONTENTS     

                                                                                                                    Pages

  • Executive Summary                                                                                x
  • Objectives                                                                                               x
  • Mission                                                                                                   x
  • Key to success                                                                                        x
  • Management team                                                                                  x         
  • Company summary                                                                                 x
  • Company history                                                                                                x
  • Company ownership                                                                               x
  • Products                                                                                                  x
  • Production process                                                                                 x
  • Choice of location                                                                                  x
  • Marketing                                                                                               x
  • Competition and buying patterns                                                           x                           
  • Strategy and implementation                                                                  x
  • The business model                                                                                 x         
  • Financial management                                                                            x
  • Monitoring and evaluation                                                                     x
  • Cash flow projections                                                                             x
  • SWOT analysis                                                                                       x
  • Approval and acceptance                                                                       x

 

  • Executive Summary

Brief description of the business and products

 

  •  Objectives.

List your objectives – what you plan to achieve.

  •  Mission.

 

A mission statement – what you would like to be and a brief statement about how you see yourself

  • Key to Success

 

What makes you special and what will be your advantages and keys to success.

  • Management Team

 

Who is involved in the business – who are the directors and partners and who will be managing the farm and various aspects like production, accounting, marketing and sales.

  • Company Summary

 

What you do and what you plan to do?

  •  Company History

 

A bit about your business – where you are, who you are, how long have you been trading, are you registered – what organizations doe you belong to?

 

  • Company Ownership

 

YOUR COMPANY NAME is a co-operative owned by directors. The YOUR COMPANY NAME  - who owns the business.

 

 

  • Products

What are you selling – eggs, meat, free range or organic – list everything

  • Eggs Production Process or broiler production process.

The YOUR COMPANY NAME xxxxx enter a description of the type of farming you plan to do and the processes involved.

Facts and Figures
ENTER all the projects and how you plan to make money
Packaging and labeling of products (branding can be included)

Storage and refrigeration of eggs and poultry products
Describe how you plan to store and keep your products before they get to market
Transport
Describe how you will get you poultry products to market

  • Business location

Explain the choice of your location – how big the farm is and why it is a good location – think about where your customers are and who you can sell to in your area.

 

  • Marketing

How you will market your product – where you might advertise and your unique angle that will make your chickens or eggs sell better than the opposition – it may include that your products are free range or organic

 

Marketing through resellers
Will you sell to middlemen or resellers – who are they and what margins will they make – will your products still be competitive?

 Marketing costs and pricing
How much will your products cost and how much will the marketing and branding cost? What price can you get for your eggs or chickens and how much money will you make?
Market Analysis Summary

Summarize the above information into a brief description – be to the point and pretend you are selling your business and have to persuade some one.

Marketing Strategy

How will you market you products? Outline plans and strategies that you have considered.

Sales Strategy

Who will you sell to and why will they buy from you – do you plan to sell to shops and supermarkets and/or directly to the public?

  • Competition

 

Who are the competition – what are they selling to and who are their customers. How much do they charge? Think about – Price, Availability and Ability to deliver consistently on long-term contracts.

  • Strategy and Implementation Summary

Summarize the above briefly and to the point.

 

  • The business model

Talk about how you will manage your farm – what checks and balance you will have in place. Think about:
- Rearing,  Housing, Equipment, Feed , Labor, Vaccinations,  other expenses like electricity, water etc..

  • Financial Management

Talk about the accounting processes, how you will manage your money and who your bankers are.

(a) Financial Planning
How you plan to raise and spend the money – short term, medium term, long term
(b) Financial Control
Who is you accountant – what qualifications and what controls you will have in place to measure production, sales and costs.
(c) Financial Decision-making
Who is responsible, how you will authorize spending, how you will monitor your budgets?
(d) Financial resources required

How much money do you need? What will you spending it on – thinks housing, land, equipment, feed, etc. What money or assets are you putting in and what other share holders are there – how much money do you need now and in the future.

  • Monitoring and Evaluation.

Evaluating employees and their input, evaluating cost and sales – think about:

  • Job expectations
  • Performance
  • Steps for improving performance
  • Rewards for good performance

 

  • Cash Flow Projections

This will have to be more detailed – all of your costs should be shown – don’t forget to show how much you are spending on chickens, layers, day old chicks, medication, breakages, mortalities, chicken egg boxes, labeling, advertising, transport etc.

 

2012

2013

2014

Sales

x

x

x

 

 

 

 

Administration

x

x

x

 

 

 

 

Chicken food

x

x

x

 

 

 

 

Stipends

x

x

x

 

 

 

 

Maintenance and repairs

x

x

x

 

 

 

 

Transportation

x

x

x

 

 

 

 

Electricity, Gas and Water

 

 

 

 

 

 

x

Net surplus/Loss

x

x

x

 

Projected Statement of Financial Position

 

2012

2013

2014

ASSETS

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

Property, plant and equipment

x

x

x

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Inventory

x

x

x

 

 

 

 

Trade and other receivables

x

x

x

 

 

 

 

Cash and cash equivalent

x

x

x

 

 

 

 

TOTAL ASSETS

x

x

x

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

Members contributions

x

x

x

 

 

 

 

Retained earnings

x

x

x

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

Long-term liabilities

x

x

x

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payables

x

x

x

 

 

 

 

Short-term liabilities

x

x

x

 

 

 

 

TOTAL EQUITY AND LIABILITIES

x

x

x

 

19. SWOT Analysis

Strengths:

  • LIST YOUR STRENGHTS

Weaknesses:

  • LIST YOUR WEAKNESSES

Opportunities:

  • LIST YOUR OPPORTUNITIES

Threats:

  • LIST THREATS TO YOUR BUSINESS

 

 

 

  • Approval and Acceptance.

 

This business plan was approved and accepted by members of
YOUR COMPANY NAME and the names of your partners or co-operative
At a special general meeting held on ________________________________

Chairperson                                                                                         Secretary

-----------------------------  -----------------------------
NAME                                                                                   Name                                  

 

     

Layer cages for poultry - When chicken farming there will be certain poultry equipment you need to farm poultry in your chicken house. Depending the type of chicken farming you are doing.
 
Pan feeders & feeding equipment
- Feeding chickens is a big part of what you will do - it can take a lot of time if you are feeding by hand - automatic feeding and nipple drinking systems can help.

Bell drinkers for chickens - Bell drinkers will help to water your chickens - if you have thousands of chickens you may want to put an automatic drink system in your chicken house.

Nipple drinking Equipment for chicken houses - Nipple drinkers are very effective for chicken farming on a large scale. When doing organic farming or free range eggs - all this poultry equipment will help.

Organic Egg Farming - Free range chickens can be feed with automatic feeding systems like cain feeding - the chickens must have access to the outside though.

Chicken Farming - free range chickens - there is a fair amount of money to be made with free range eggs and organic eggs.

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Small Farmer Solution

3m x 12m chicken house

Size 6m x 3m

All equipment included

270 birds, Return per cycle (not the price) R2500 (SPEC)

email us now

------------------------------------

Commercial solution

6m-x-30m-chicken-house

Size 15m x 6m - all equipment included

1500 birds, Return per cycle (not the price) R10000 (SPEC)

Chicken House Prices

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PHONE US

012 669 9908

084 363 9914

The Equipment we use is either manufactured in our factory in Gauteng or imported from Gasolec and Impex.

If you need to know how many birds you can grow in your space, or what poultry equipment you need - ask - our team of poultry experts will find the answer. Chicken Shack has a reputation for making a plan - and being one of the few poultry equipment companies who manufacture drive units, troughs, feeder bins, auger systems etc. - if the solution is not of the shelf - we'll make it for you.

We also do laying houses, garden sheds., storage sheds, and wendy houses.

Whatever size you want - we can build a steel poultry shed for you.