Professional Documents
Culture Documents
Model Project On Poultry Broiler Farming
Model Project On Poultry Broiler Farming
3.1 NABARD is an apex institution for all matters relating to policy, planning and operations in
the field of agricultural credit. It serves as an apex refinancing agency for the institutions
providing investment and production credit. It promotes development through formulation and
appraisal of projects through a well organised technical services department at the Head Office
and technical cells at each of the Regional Offices.
3.2 Loan from banks with refinance facility from NABARD is available for starting broiler
farming. For obtaining bank loan, the farmer should apply to the nearest branch of a commercial
or cooperative or regional rural bank in their area in the prescribed application form which is
available in the branches of financing bank. The technical officers attached to or the manager of
the bank can help or give guidance to the farmers in preparing the project report to obtain bank
loan.
3.3 For poultry farming schemes with very large outlays detailed project reports are required to
be prepared. The items of finance would include construction of broiler sheds and purchase of
equipments. Cost of one day old chicks, feed, medicine and labour cost for the first 7 weeks
period for the first cycle, are also considered. Facilities such as land development cost, fencing,
water and electricity, essential servants quarters, godowns, transport vehicles, broiler dressing,
processing and cold storage facilities can also be considered for providing loan. Cost of land is
not considered for loan. However, if land is purchased for starting a broiler farm, its cost can be
treated as party's margin money upto 10% of the total cost of project.
4. Scheme formulation for bank loan
4.1 A scheme can be prepared by the beneficiary after consulting local technical persons of State
veterinary department, poultry corporation or private commercial broiler hatcheries. If possible,
they should also visit the progressive broiler farmers in the area and discuss the profitability of
farming. A good practical training and experience on a broiler farm will be highly desirable,
before starting a broiler farm. As broilers have to be sold after attaining 6-7 weeks of age, a
regular and constant demand for broiler meat and nearness of the farm to the market should be
ensured.
4.2 The scheme should include information on land, water and electricity facility, marketing
aspects, training facilities and expertise of entrepreneurs and the type of assistance available
from State government, poultry corporations, local hatcheries. It will also include data on
proposed capacity of the farm, total cost of the project, margin money to be provided by
beneficiary and requirement of bank loans, estimated annual expenditure, income and profit and
the repayment of loan and interest. A format developed for formulation of broiler farming
schemes is appended as annexure I.
5. Requirements of good project
The bank officers also can assist in preparation of the scheme or filling in the prescribed
application form. The scheme so formulated should be submitted to the nearest branch of bank.
The bank will then examine the scheme for technical feasibility and economic viability.
Other documents such as loan application forms, security aspects, margin money requirements
etc. are also examined. A field visit to scheme area is undertaken for conducting technoeconomic feasibility study for appraisal of the scheme. The model economics of Broiler farming
unit of 4000 birds is given in Annexure IIa to IIf.
6. Sanction of Bank loan and its disbursement
After ensuring technical feasibility and financial viability, the scheme is sanctioned by the bank.
The loan is disbursed in kind in 2 or 3 stages, such as against the creation of specific assets,
construction of sheds, purchase of equipment and machinery, recurring cost on purchase of
chicks, feeds, medicines, etc. The end use of the loan is verified and constant follow up is done
by the bank.
7. Lending terms - General:
7.1 Unit cost :
Each Regional Office (RO) of NABARD has constituted a State Level Unit Cost Committee
under the chairmanship of RO-in-charge and with the members from developmental agencies,
commercial banks and co-operative banks to review the unit cost of various investments once in
six months. The same is circulated among the banks for their guidance. These costs are only
indicative in nature and banks are free to finance any amount depending upon the quality of
investment.
7.2 Margin Money :
NABARD has defined farmers into three different categories and where subsidy is not available
the minimum down payment as shown below is collected from the beneficiaries.
Sr.
No.
a) Small farmers
b) Medium farmers
c) Large farmers
5%
10%
15%
Ensure adequate facility for water, electricity, approach road, supply of chicks, feed,
veterinary aid and nearness to market for sale of live birds and dressed chicken.
4. Provide adequate floor space, feeding space and watering space per bird (see details in
Annexure III). BIS specifications for construction of poultry sheds are available.
5. Construct sheds in such a way that the end walls face East-West direction and the side
walls face North-South direction, so that rain water will not enter the sheds.
6. Provide strong roof and hard flooring. Raise plinth of the shed at least one feet above the
outside ground level.
7. Provide 3 to 4 feet overhang of the roof to avoid entry of rainwater inside the shed.
8. Provide at least 50 feet distance between two sheds.
9. Provide adequate light and ventilation and comfortable housing conditions during all
seasons (cool in summer and warm in winter).
Construct sheds in such a way that predators (cats/dogs/snakes) will not enter the shed.
Avoid entry of rats by constructing rat proof civil structures.
10. Keep the shed clean and free from flies/mosquitoes etc.
11. After disposal of every batch of birds the dirty litter material and manure should be
removed, walls and floors should be cleaned, white washed with lime and disinfected
with 0.5% malathion or DDT insecticide spray.
12. If deep litter system is followed, always use dry and clean litter material (sawdust, paddy
husk, etc.). Spread 4" layer of litter on the floor, keep clean/disinfect brooding, feeding
and watering equipment and then introduce chicks in the house.
13. The litter material should be always kept loose and dry. Stir the litter twice a week. Any
wet litter/droppings etc. should be removed and replaced with fresh/clean dry litter.
Poultry Equipment :
15. Use scientifically designed cages and equipment for brooding, feeding and watering
purposes. BIS specifications for equipment are available. A good design can be shown and
manufactured locally, so that cost can be reduced.
Chicks :
16. Purchase of improved strain of one day old healthy broiler type chicks from a reputed
hatchery. Usually 2-5% extra chicks are supplied.
17. Clean, wash and disinfect all equipments with 0.5% malathion spray after every batch of
birds is disposed off.
Feeding :
18. Use high quality balanced feeds. With proper knowledge/experience, the feed can be
prepared at the farm. Feed requirements of birds are shown in Annexure IV. BIS feed formulae
and specifications are available. Composition of some of the practical broiler diets is given in
annexure V.
19. Store the feed in clean, dry, well ventilated room. A wet feed may bring fungus infection.
20. Use properly designed feeders and control the rats to avoid feed wastage.
21. Keep proper records on feed consumption per bird for each batch. Compare with the
standard feed consumption pattern. Too low feed consumption may be due to disease condition,
low quality/unpalatability of feed, high temperature in poultry shed.
Watering of Birds :
22. Always give fresh and clean drinking water. Water should be always available at birds.
23. Use properly designed watering equipment. Provide adequate watering space per bird (for
details see Annexure - III).
24. Always keep water-pots clean. Avoid birds entering inside pots.
25. Provide cool water during summer. Store the water in tanks that are not exposed to hot sun
in summer.
Disease Prevention/Control :
26. Clean sanitary conditions of poultry sheds and equipment, balanced feed, fresh clean
water, healthy chicks are essential to prevent diseases.
27. Avoid entry of visitors to farm, especially inside the sheds. If visitors come, ask them to
dip their feet in a disinfectant solution, wash and clean hands and to wear apron/boots provided
by the farm.
28. Use proper vaccination schedule (for details see Annexure-VI)
29. Use high quality vaccines purchased from reputed manufacturers. Keep vaccines in cool,
dry conditions away from sunlight.
30. Any left-over vaccine should be properly disposed off. Vaccines should not be used after
their expiry date is over.
31. Any dead bird should be immediately removed from the shed and sent to laboratory for
post-mortem or buried/burnt suitably away from the poultry sheds.
32. The waste of farm should be suitably disposed off.
33. Any bird showing advanced signs of a disease, should be removed from the shed and
culled. It can be sent to laboratory for diagnosis.
34. Birds showing advanced signs of a disease should be shown to a qualified veterinarian and
suitable medication/treatment be given as per his/drug manufacturers recommendations.
35. Poultry manure, if infected, can spread disease, from one batch to another. Keep the litter
dry, remove it after flock is sold and dispose the manure properly and quickly.
36. Keep proper records on mortality and its causes and the treatment given to birds. Dates of
vaccination for each flock should be properly recorded.
37. Rats are important carriers of poultry disease. Avoid rats. Use suitable rat poisons/rat traps.
38. Many poultry medicines can be given in drinking water. When medication is to be given,
remove the waterers in poultry sheds on the previous evening. Next morning give medicine in
measured quantity of water, so that entire medicine will be quickly consumed and there will be
no wastage of medicines.
39. Mild infection of disease may not cause mortality but it will reduce growth. Keep sample
record of body weight and mortality rate. Study the possible causes, if weight is low take steps to
improve the management of the subsequent batches. A Constant vigil and analysis of
records/results is necessary to keep up the efficiency in farming.
Processing/Marketing :
40. Ensure the constant and steady demand for broiler meat is available and the market is
nearer to the farm.
41. Study the market demand for particular live weight of the birds.
42. Birds should not be kept on the farm beyond 6-7 weeks of age, as their feed efficiency will
go down considerably.
43. If birds are sold after dressing (processing) use clean dressing hall and processing
equipment. Dressed birds should be chilled in the ice-cold water for 3-4 hours and excess water
removed. Birds should then be packed in clean plastic bags and the mouth of bag sealed.
44. Processed birds should be marketed as early as possible. If they have to be preserved, deep
freezing equipment (-10 to -200C) be used. Refrigerated vans may be required for long distance
transportation.
Annexure I
Format for submission of schemes Scheme: Poultry - Broiler Farming
1. General
i)
ii)
iii)
iv)
Sr.No.
a)
b)
c)
No. of units
v)
Sr.No.
Block
(v) Debeaker
(vi) Vaccinator
(vii) Fridge/Deep Freezer
(viii) Dressing equipment if necessary
(ix) Truck/van/Jeep
(Price quotations for the above equipments)
d) Housing:
i) Type of housing Deep Litter/Slat/Environment controlled
ii) Area required (sft./bird)
e) Birds:
i) Proposed strain
ii) No.of birds to be purchased
iii) Source of purchase
iv) Cost of birds (Rs. per bird)
v) Vaccination of purchased birds
vi) Proposed programmeof replacement
f) Production parameters:
i) Average body weight (kg.)
ii) Feed efficiency (kg. of feed/ kg.body weight gain)
iii) Mortality (%)
g) Flock Projection Chart:
h) Feeding:
i) Source of availability - Purchased or own feed manufacturing
ii) If purchased
a) Place of purchase
b) Brand
c) Cost (Rs./kg)
- Starter
- Finisher
iii) If manufactured on farm
a) Capacity of feed grinder and mixer
b) Source of raw materials
c) Feed formula
d) Cost of production (Rs./kg)
- Starter
- Finisher
iv) Requirement (kg/bird)
- Starter
- Finisher
i) Veterinary aid
i) Source
ii) Location
iii) Distance (km.)
iv) Availability of staff
v) Type of facilities available
vi) If own arrangements are made
a) Employed a verterinary doctor/stock man /consultant
b) Periodicity of visit
c) Amount paid (Rs.)
vii) Expenditure per bird per cycle (Rs.)
j) Electricity
i) Source SEB/Other
ii) Approval from electricity board
iii) Connected load
iv) Problems of power failure
v) Arrangements for generator
k) Water
i) Source
ii) Quality of water
iii) Availability of sufficient quantity for drinking and cleaning
iv) If investment has to be made type of strcture design and cost
l) Marketing of broilers
i) Source of sale
ii) Place of disposal
iii) Distance (km)
iv) Basis of payment (number or weight)
v) Price realised - (Rs. per kg live weight or live bird)
Whether
approved by
state level
unit cost
committee
Total
ii) Down payment/margin/subsidy (Indicate source & extent of subsidy)
iii) Year - wise physical & financial programme.
Year
Investment
Total
outlay
(Rs.)
4
Margin/
subsidy
(Rs.)
5
Bank
Loan
(Rs.)
6
Refinance
assistance
(Rs.)
7
Total
iv) Financial viability ( comment on the cash flow projection on a farm model / unit and enclose
the same ) Particulars :
a) Internal Rate of Return (IRR):
b) Benefit Cost Ratio (BCR) :
c) Net Present Worth (NPW) :
v) Financial position of the borrowers (to be furnished in case of corporate bodies/partnership
firms)
a) Profitability ratio
i) Gross Profit ratio
ii) Net Profit ratio
b) Debt equity ratio
c)Whether Income tax & other tax obligations
are paid upto date
d) Whether audit is upto date (enclose copies of audited
financial statements for the last three years)
vi) Lending Terms :
i) Rate of interest
ii) Grace period
iii)Repayment period
iv) Nature of Security
v) Availability of Government guarantee wherever necessary
4. INFRASTRUCTURAL FACILITIES:
a) Availability of technical staff with bank/implementing
authority for monitoring
b) Details of
i) technical guidance
ii) training facilities
iii) Govt support/ extention support
c) Tie-up arrangements with marketing agencies for loan recovery :
d) Insurance :
Type of policy
Periodicity
Rate of premium
Annexure IIa
Economics of Broiler Farming - at a Glance
1. Unit Size : 500 broiler birds per week
Specifications
No
Physical
Units
Unit
Total cost
cost(Rs./ (Rs.)
Unit)
4000 sft.
200 sft
150 sft
100 sft
750 rft
1 Ls
5000 litres
1 Ls
90
100
100
90
20
20000
2
12000
360,000
20,000
15,000
9,000
15000
20,000
10,000
12,000
5
6
7
etc.
d) Electrical
installation/equipment
Equipments
a) Feeders and waterers
b) Dressing equipment
Capitalisation of
recurring expenses for
first 8 batches
a) Chick cost
b) Feed cost for 4080
3.2 kg/bird
birds
c) Overheads such as
Rs.5.00/bird
cost of, Medicines,
vaccine, insurance, litter
d) Labour cost
3 months
Total financial outlay
(TFO)
Margin money @ 25% of
TFO
Bank loan @ 75% of
TFO
4% of civil
costs
4000 birds
Ls
16160
12
48000
10,000
4000 DOCs 13
13056 kg
11
52,000
143616
4080 birds
20,400
1250
3750
754926
Say
188732
Say
566195
Annexure - II c
ECONOMICS OF BROILER FARMING - TECHNO - ECONOMIC PARAMETERS
1
2
3
4
6
7
500
8
40
52
33
52
1
90
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
200
100
150
100
100
100
750
20
4
15
4
13
4
3.2
11
1250
8
1.5
40
60
1
13.3
10
5
10
25
12
6
0.5
3
7-10
Annexure - II d
ECONOMICS OF BROILER FARMING - FLOCK PROJECTION CHART
Year
I
II
III
IV
V
VI
Note:
1) Initial period for three months, is considered as construction period and accordingly
only 40 batches will be introduced in first year.
2) Closing stock of 7 batches with an average age of 4 weeks will be there at
the end of sixth year and the value of the same is taken into account for
cash flow analysis.
3) The average value of the closing stock is considered at Rs. 35/- per bird.
Annexure - II e
ECONOMICS OF BROILER FARMING - CASH FLOW ANALYSIS
Sr.
Particulars
II-V
VI
535160
260,000
718080
95,110
15000
1623350
3380000
933504
132000
15000
1418504
3380000
933504
132,000
15000
1418504
990000
16500
1560000
26000
1560000
13,000
No
I
1
2
a)
b)
c)
d)
II
1
2
Costs:
Capital cost:*
Recurring costs:
Cost of chicks
Cost of feed
Misc. expenses
Labour cost
Total Costs
Benefits
Sale of birds
Sale of manure
3
4
a)
b)
5
6
7
a)
b)
c)
8
9
8122
11286
11286
0
0
0
0
296977
59074
0
1014622
-608728
0
1597286
178782
122500
2075838
178782
5546430.80
5745128.16
198718
01: 01.1
>27%
* Excluding the capitalised amount on chicks, feed, Misc. exp. and labour cost
Annexure - II f
ECONOMICS OF BROILER FARMING REPAYMENT SCHEDULE
Bank loan (Rs.) : 566195
Interest rate :12 %
(Rupees)
Year Income Expenses Gross Loan Interest Repayment Repayment Net
surplus Balance
Int.
Pri.
surplus
I
II
III
IV
V
VI
VII
67944
67944
60000
51000
41400
29400
14400
67944
67944
60000
51000
41400
29400
14400
0
66195
75000
80000
100000
125000
120000
78255
44642
43782
47782
37382
24382
44382
* During the first year it is the difference between the total costs and total project cost
Note : Average loan period in first year is considered as 10 months for working out interest
amount.
Annexure - III
Floor space, Feeding space and watering space data
for Broiler Chicks
Age weeks
Floor space
Sq.ft./Chick
Feeding space
inches/chick
Watering space
inches/chick
1
2
3
4
5
6
7
0.2
0.2
0.3
0.4
0.6
0.8
0.9
1.5
2.0
2.0
2.5
2.5
3.0
3.0
0.5
0.7
0.7
0.8
0.8
1.0
1.0
Annexure - IV
Body weight, feed consumption and feed conversion of broiler chicks
Age
Feed
Feed conversion
consumption(kgs)
Weekly Cummulative Weekly Cummulative
0.1
0.23
0.34
0.47
0.63
0.74
0.82
0.1
0.34
0.67
1.14
1.77
2.51
3.32
0.81
1.53
1.64
1.93
2.16
2.26
2.47
0.81
1.21
1.4
1.50
1.77
1.89
2.01
Formulations
Ingredients
1
Maize
51
58.5
47.5
53.25
Wheat bran
10
2.5
7.75
--
25
29.4
29.4
Fish Meal
10.8
11
12.6
12.6
Dicalcium
Phosphate
Lime Stone
0.5
0.5
0.5
0.25
Salt
0.5
0.5
0.5
0.5
Premix*
100
100
100
100
22
24
24
ME.
ICal/Kg.diet
3,000
2,800
3,000
2,800
Vitabland (A1B2D3)
Folic acid
Vit.E
Niacin
Pyridoxine
Choline Chloride
25
0.1
4
10
1
30
Mineral (gm)
Ferrous sulphate
Zinc Sulphate
Copper sulphate
Manganese Sulphate
Potassium iodate
20
25
25
25
0.1
Amino acid
(gm)
L-lysine hydrochloride
220
DL - Methionine
160
Annexure VI
Vaccination Schedule for Broilers
Name of
disease
Marek's
disease
Ranikhet
disease
Fowl pox
Name of
Vaccination
Days/weeks of Route of
vaccination
inoculation
Herpes virus
turkey
vaccination
RD vaccine
1 day old
Intra-nasal
Intra-ocular
(Lasota 'F`
strain)
Chick embryo
adopted fowl
Remarks
Immunity is up
to 10 weeks
old
If the disease
is prevalent in
the area. Once
vaccinated
gives life long
immunity.
During chick rearing the disease most likely to occur is coccidiosis. Its organisms thrive on wet
litter and so keep the litter dry. The feed mixed with coccidiosis should be used. In case of an
outbreak, the Coccidiocidal drug in drinking water should be used at recommended level.