2018019

Abdullah Arif
HM-102

FEASIBILITY
REPORT
Construction of Poultry Farm
FEASIBILITY REPORT

Contents
INTRODUCTION: ............................................................................................................................................ 3
Executive summary: ...................................................................................................................................... 4
Location:.................................................................................................................................................... 4
PRODUCT MIX: .............................................................................................................................................. 5
INSTALLED CAPACITY OF PROJECT: ........................................................................................................... 5
ESTIMATED PRODUCTION:........................................................................................................................ 5
ESTIMATED COST OF PROJECT: ................................................................................................................. 6
OPPORTUNITY RATIONALE: ...................................................................................................................... 8
SWOT ANALYSIS ........................................................................................................................................... 9
Environmental Controlled Shed ............................................................................................................... 9
Strengths ................................................................................................................................................... 9
WEAKNESS: ............................................................................................................................................. 10
OPPORTUNITIES: ..................................................................................................................................... 10
THREATS: ................................................................................................................................................. 10
Market Analysis:.......................................................................................................................................... 11
DISTRIBUTION CHANNELS ....................................................................................................................... 12
POULTRY GP IN PAKISTAN UPDATES 17-12-2018: ...................................................................................... 14
ALNOOR GP PROJECT .............................................................................................................................. 14
Poultry and market division : ...................................................................................................................... 15
TECHNICAL ANALYSIS .................................................................................................................................. 16
PROCESS FLOW ....................................................................................................................................... 16
Flow System: ........................................................................................................................................... 17
Technology INVOLVED: ........................................................................................................................... 17
PERSONAL ANALYSIS ................................................................................................................................... 20
HUMAN RESOURCE REQUIREMENT:....................................................................................................... 20
FINANCIAL ANALYSIS:.................................................................................................................................. 21
INCOME STATEMENT: ............................................................................................................................. 21
BALANCE SHEET: ..................................................................................................................................... 22
CASH FLOW STATEMENT: ....................................................................................................................... 23
FINANCIAL RATIOS: .................................................................................................................................... 24
IRR & PAY BACK PERIOD: ........................................................................................................................ 24
GOVERNMENT POLICIES: ........................................................................................................................ 27

1
FEASIBILITY REPORT

PROVINCE WISE POULTRY STATISTICS: ..................................................................................................... 30

RECOMMENDATIONS: ................................................................................................................................ 32
Conclusion: ................................................................................................................................................. 32
References: ................................................................................................................................................. 34

2
FEASIBILITY REPORT

INTRODUCTION:

The poultry ranch is a task of domesticated animals area, in which, the day
old chicks (DOCs) are raised on high protein feed for a time of about a
month. Grill meat is the least expensive wellspring of creature protein
accessible in the nation. The time required for raising grill feathered
creatures is lesser than that for extensive creatures. The utilization of white
meat is expanding because of developing wellbeing cognizance in the
majority. Oven cultivating is a gainful endeavor because of consistent
expanding request of the meat in the market. Every year, seven rushes of
flying creatures will be raised on similar premises of the homestead. The grill
flying creatures are sold to merchants and the entire venders showcases in
the urban zones. A few times feathered creatures can likewise be sold
straightforwardly to the businesspeople in the urban markets.

Grill meat is the least expensive wellspring of creature protein accessible in

the nation. The time required for raising oven fowls is lesser than that for
huge creatures. The utilization of white meat is expanding because of
developing wellbeing awareness in the majority.

As per the Agriculture Statistics of Pakistan the per capita utilization of

poultry meat is expanding at a rate of 4% per annum.

The current day by day accessibility of protein amount per capita in Pakistan
getting from creature source including hamburger, lamb, poultry and fish
consolidated adds up to 11 grams. This is far not exactly the suggested every
day dietary protein recompense from creature wellspring of 26 grams as
indicated by the World Health Organization benchmarks.

3
FEASIBILITY REPORT

Executive summary:

The proposed task considers to set up Queen's Land Environmental

Controlled Shed at Swabi. There is no other poultry farm in Swabi. So people
of Swabi have to get the chicken from other areas i.e. Islamabad or
Peshawar. That’s why the citizen of Swabi purchase the meat at high rate
than other developed areas. The purpose of this project is to provide the
meat to the citizens of Swabi at lower and cheap rates. The yearly appraised
limit is 525,000 Kg of meat. The proposed venture has most recent imported
apparatus from Spain yet it is legitimately obtained from provider through
Lahore and privately made structure.

Location:

The proposed undertaking thinks about to set up Queen's Land

Environmental Controlled Shed at Swabi. The territory of the undertaking is
1Acre.

The proposed task site appreciates the advantages of;

1) Easy accessibility of crude material

2) Quick access to fundamental street and Railway station.
3) Sources of intensity, water, fuel and so forth.
4) Availability of Transport and present day Communication frameworks.
5) Availability of Skilled and Un-Skilled work.
6) Free from ecological perils like water logging and saltiness.

4
FEASIBILITY REPORT

PRODUCT MIX:

The proposed project will generate revenues from sale of chicken.

PRODUCT
PRICE
PLACE
PROMOTION

INSTALLED CAPACITY OF PROJECT:

Installed capacity of the project at 100% is 210,000 birds or 525,000

Kg of meat annually.

ESTIMATED PRODUCTION:

Chicks 2019 2020 2021

Total Production 100%
Capacity Production 90% 95% 100%
Total Production
Capacity '000 525 473 499 525

5
FEASIBILITY REPORT

ESTIMATED COST OF PROJECT:

Project Cost
Description Amount '000’
Land & Land
Development 1,920

Building & Civil Works 8,783

Machinery 2,622

Furniture & Fixture 159

Pre-Production Expenses 185

Interest During
Construction 1,246

Cost of Project 14,915

Contingencies 10% Project Cost 1,492

Total Fixed Cost 16,407

6
FEASIBILITY REPORT

Initial Net Working

Capital 8,190

Total Cost of Project 24,596

MEANS OF FINANCE:

Means of Finance
Amount '000'
Debt 60%
Allied Bank Loan 14,758
Total Debt 14,758
Equity 40% 9,839
Total Debt & Equity 24,596

SPONSORS STAKE:

Names of Sponsors % of Equity Contribute Amount '000'

Muhammad Anis 40% 3,935
Shakir Rashid 30% 2,952
Hafiz Zahid Mahmood 30% 2,952
Total Equity 100% 9,839

7
FEASIBILITY REPORT

IMPLEMENTATION SCHEDULE:

Implementation Schedule
S.# Activities Month Year
1 Acquiring of Land & leveling Start 1st June 2019

Complete 15th June 2019

2 Engineering studies and designing of Start 16th June 2019

civil work Complete 30th June 2019

4 Order for machinery 1st July 2019

5 Construction of building and civil work Start 1st July 2019

Complete 31st July 2019

6 Arrival of machinery at site 1st Aug 2019

7 Erection and installation of machinery Start 5th Aug 2019

Complete 20th Aug 2019

8 Order for raw materials 15th Aug 2019

9 Trial run Start 21st Aug 2019

Complete 30th Aug 2019

10 Start of commercial production 1st Sep 2019

OPPORTUNITY RATIONALE:

Grill meat is the least expensive wellspring of creature protein accessible in

the nation. The time required for raising grill winged animals is lesser than
8
FEASIBILITY REPORT

that for huge creatures. The utilization of white meat is expanding because
of developing wellbeing awareness in the majority.

The current every day accessibility of protein amount per capita in Pakistan
getting from creature source including hamburger, sheep, poultry and fish
consolidated adds up to 11 grams. This is far not exactly the suggested every
day dietary protein recompense from creature wellspring of 26 grams as per
the World Health Organization measures

SWOT ANALYSIS

Environmental Controlled Shed

Strengths:

Natural Controlled Shed has different qualities and they are as per the
following:
 Development in independent company
 Require government motivator
 Government job and backing
 Create preparing program for Poultry Farmers
 Satisfy extensive need of meat every year at less expensive costs
helpful showcasing framework in the creating procedure .
 Less Chances of Diseases
 Keep up temperature under 40*C

9
FEASIBILITY REPORT

WEAKNESS:
The shortcomings of Environmental Controlled Shed are as per the
following:
 Appropriation of new antibodies
 Staggering expense of crude material
 Not accessibility of room
 Infections
 Unhygienic condition
 Handling plant
 Poor administration
 Absence of prepared specialist
 Absence of access to data sources and credits

OPPORTUNITIES:
Ecological Controlled Shed has different chances and they are as per the
following:
 Degree for solidified organization
 Monetary advantageous
 Favorable position for independent venture individual
 Degree for eatery
 Ceaseless increment popular of meat in market
 Deals cost are sensible and inward rate of return is additionally low
 Creation on extensive scale can boost benefit

THREATS:
The dangers of Environmental Controlled Shed are as per the following:
 Impact of progress in the administration guideline.
 Winged animal Flu
 Hard core charge on hatchery
10
FEASIBILITY REPORT

 Present emergency
 Constantly an excess of variety in deals costs
 Vitality emergencies
 Quick increment in chicks costs

Market Analysis:

The showcasing of chickens pursues the conventional channels of

conveyance. By and large, grills are conveyed in the market through go
between and Wholesalers. The job of Art is to recognize a homestead and
arrange the cost. At times, the agent gives Day Old Chicks and other ranch
inputs (feed, and so forth.) to the oven ranchers and afterward consents to
repurchase the developed winged creatures from them. Feathered
creatures are transported to the urban market and are sold to retailers or
market-road Poultry shops. Broiler chickens are sold on live-weight premise.
The time spent in getting grills from the homestead to the retail shop is
brief. In spite of the fact that gathering and treatment of chicken has
improved with the utilization of loader vehicles, yet more noteworthy the
separation between the poultry maker and buyer, increasingly confused is
the Marketing framework including their accumulation, taking care of and
transportation to the Consumer or handling plants. The preparing plant
produces dressed chicken (Slaughtered and cleaned). In any case, an
extremely little measure of dressed chicken is Available in the nearby retail
showcase. The coordinated preparing units circulate solidified and dressed
chicken stuffed in entire or slice ups to the purchaser through retail shops
under their image names. The trap in showcasing is fast accessibility of
market data of chicken free market activity, which will decide the selling
cost.

11
FEASIBILITY REPORT

DISTRIBUTION CHANNELS

Type Units 2015-16 2016-17 2017-18

Domestic Poultry Million 74.02 75.11 76.22
No’s

Cocks 8.84 9.08 9.32

Hens 34.84 35.47 36.11

Chicks 30.34 30.57 30.79

Eggs 3484 3547 3611

Meat 000 Tons 96.54 98.45 100.41

Duck, Drake & Ducking 0.67 0.64 0.61

Million No’s

Eggs 29.85 28.61 27.42

Meat 000 Tons. 0.91 0.87 0.83

Commercial Poultry
Layers. Million No’s 24.82 26.56 28.42

Broilers 370.7 407.77 448.55

Breeding Stock 7.25 7.61 7.99

12
FEASIBILITY REPORT

Day old Chicks 387.2 425.92 468.51

Eggs 6682 7136 7620

Meat 000 Tons 456.95 501.3 550

Total Poultry
Day old chicks. Millions 418 456 499
No’s

Poultry Birds 477 518 562

Eggs 10197 10711 11258

Poultry Meat. 000 Tons 554 601 651

(Economic Survey of Pakistan 2015-2018)

Poultry Sector is one of the energetic fragments of agribusiness industry of

Pakistan. This segment produces business (direct/circuitous) and salary for
about 1.5 million individuals. Its commitment in farming development is
4.81% and in Livestock development 9.84%. Poultry meat commitment 19%
of the absolute meat generation in the nation. The present interest in
Poultry Industry is about Rs. 200.00 billion. Poultry area has appeared strong
development at the rate of 8-10 percent yearly which mirrors its intrinsic
potential.

13
FEASIBILITY REPORT

POULTRY GP IN PAKISTAN UPDATES 17-12-2018:

ALNOOR GP PROJECT

AL-NOOR CHICKS (PVT) LTD.

P-485,OPPOSITE NATIONAL SILK MILL 4-km,,Jaranwala Road Faisalabad
Phone : (92-41) 8555782-87 5LINES FAX;92 41 8710472
SALES OFFICE;FALT;17-18,KALA KHAN PLAZA SHAMASABAD MUREE ROAD
RAWALPINDI
TEL;92 51 4419050,4453958,4417288 FAX;92 51 4425389
KARACHI;FAX;92 21 4540522,TEL;92 21 4540533
MULTAN;92 61 4549674-4546779
R Y KHAN;92 68 5873422,5873622
CEO CH NIAZ RASOOL
BRPOILER GP SHAVER STARBRO LAYER GP SHAVER
Mr. Niaz Rasool Chaudary
Chairman.

FAISAL CHICKS
POSTAL & CONTACT;P-42/1 OPP MUNCIPAL DGREE COLLEGE JARANWALA
ROAD ISLAMABAD PAKISTAN
TEL;+92 41 8726639-8727639
fax;+92 41 8546639
E-MAIL;faisalchicks@yahoo.com
chairman CH MUSTAFA

QUALITY BREEDERS

HEAD OFFICE: HOUSE#28-A, BLOCK-D, SATELLITE TOWN MAIN 6TH ROAD

14
FEASIBILITY REPORT

RAWALPINDI
Tel: 111-96-96-96 fax 4425180
92 51 4457435-39
sarosh_2001@yahoo.com
DIRECTOR DR HASSAN SAROSH AKRAM
BROILER GP ARBOR ACERS

Poultry and market division :

15
FEASIBILITY REPORT

TECHNICAL ANALYSIS

PROCESS FLOW

16
FEASIBILITY REPORT

Flow System:

The accompanying works on beginning from entry of the chicks to

 Thermostatically temperature control: Low temperature will be controlled

with the assistance of diesel radiators and high temperature with
evaporative cooling framework.
 Watering through programmed areola drinking framework.
 Encouraging through programmed nourishing framework.
 Explicit inoculation timetable will be embraced for sickness control.
 Prophylactic medicine will be given by necessity.
 Sanitation and cleansing system will be carefully pursued amid and after
the fruition of one run.
 Electronic record will be kept up for feed consumption, body weight, FCR
and mortality.
 Promoting of completed (prepared) ovens.

Technology INVOLVED:

The Machinery which is utilized for Sunrise Environmental Control Shed is Foreign
Machinery which imports structure Spain and we straightforwardly bought it from
Biovet Pvt Limited Lahore (Supplier).

17
FEASIBILITY REPORT

LIST OF MACHINERY:
Machinery and Other Equipment
Rs.
Description Qty Cost /Item
'000'
Feed Hooper 1 55,000 55

Cooling Pad 4 19,900 80

Electric Moter 1HP 25 5,293 132

Generator 25 KV 1 400,000 400

Transformer 25 KV 1 310,000 310

Winch 5 5,527 28

Cone Fan Exhaust 15 17,000 255

Feed Line 4 85,680 343

Water Line 5 60,235 301

Water Tank 1500 liter 2 9,300 19

Environment Controller 1 203,000 203

Brooder 2 183,587 367

Regulator 3 5,530 17

Penal Board 2 7,080 14

Alarm Box 1 4,850 5

Pressure Machines 2 20,065 40

Main Switch 1 2,610 3

Total Cost of Machinery

& Equipment 2,571

Erection & Installation 2% 51

Total Machinery & Equipment Required

2,622

18
FEASIBILITY REPORT

REQUIREMENT OF RAW MATERIAL:

Raw Material
2020 2021 2022

Rs ''000' Rs ''000' Rs ''000'

Chicks 13,601 16,600 20,000

Feed Bags 23,027 28,025 33,820

Vaccine 162 171 180.04

Total (Rs.) 36,790 44,634 54,000

REQUIREMENT OF UTILITIES:
MANUFACTURING OVER-HEADS

a) FIXED
COSTS (Rs.000)

(Fixed No. of
(KVA) Amount) Months

Power KVA 25 315 per KVA 12 95

on
Construction
Building @ 4% Cost 351

Machinery @ 5% Installed cost 131

Generator Flock in
(Diesel) Rs. 500,000 per Flock 7 Year 3,500

Miscellaneous 50

Total Fixed cost 4,127

b)VARIABLE
COST

19
FEASIBILITY REPORT

No. of
days in
Price/Unit Consumption Units per Day year Total

Off-Peak/Day 6.27 70 315 138

Peak/Day 10.27 18 315 58

Total Variable
Cost 196

MANUFACTURING OVER-HEADS 2020 2021 2022

90% 95% 100%

Fixed Costs 4,127 4,127 4,127

Variable Costs 177 187 196

Total Costs 4,304 4,314 4,323

PERSONAL ANALYSIS
HUMAN RESOURCE REQUIREMENT:

S.No. Types of Staff Required Salary Per Month Salaries for Year

1 General Manager 1 10,000 112,000

2 Accountant 1 8,000 96,000

3 Supervisor 1 11,000 132,000

4 Doctor 1 20,000 240,000

5 Workers 6 7,000 504,000

6 Electrician 1 9,000 108,000

7 Cook 1 7,000 84,000

8 Sweeper 2 4,000 96,000

9 Security Guard 1 6,000 72,000

TOTAL 15 1,440,000

20
FEASIBILITY REPORT

FINANCIAL ANALYSIS:

INCOME STATEMENT:

INCOME STATEMENT Amount '000' (Rs.)

For the Year ended 2020 2021 2022

Operating Efficiency Assumed 90% 95% 100%

Sales 59,063 71,695 86,789

Raw Material Consumed 36,790 44,634 54,003

Labor 1,068 1,121 1,177

Manufacturing Expense 4,304 4,314 4,323

Depreciation 706 706 706

Cost of good Sold 42,868 50,775 60,210

Gross Profit 16,194 20,921 26,579

General and Admin. Exp (Increase

Annually) 2% 484 494 504

Selling Expenses 1% 591 717 868

Total Operating Expenses 1,075 1,211 1,371

Operating Profit (EBIT) 15,120 19,710 25,207

Other Income 2,723 971 1,124

Amortization of Pre-Production Exp

(Years) 3 62 62 62

Interest Expense 3,357 1,994 1,492

Earning Before Tax (EBT) 14,423 18,625 24,778

Provision for Tax 20% 2,885 3,725 4,956

Net Profit after Interest & Taxes 11,539 14,900 19,822

Retained Earning 11,539 14,900 19,822

21
FEASIBILITY REPORT

BALANCE SHEET:

Balance Sheet (Rs. in '000')

Construction 2020 2021 2022

ASSETS

Cash 1,442 29,301 43,206 62,448

Marketable Securities 0 0 0 0

Accounts Receivables 188 2,953 3,585 4,339

Raw Material Inventory 5,840 0 0 0

Stores & Spares 1,305 3,679 4,463 5,400

Total Current Assets 8,774 35,934 51,255 72,188

Fixed Assets at cost 16,222 16,222 15,515 14,809

Less: Accumulated Depreciation 0 706 706 706

Net Fixed Assets 16,222 15,515 14,809 14,103

Preliminary Expenses: 185

Total Assets: 25,180 51,449 66,064 86,291

LIABILITIES & EQUITY

Current Liabilities

Accounts Payable 0 3,679 4,463 5,400

Accrued Expenses 0 2,953 3,585 4,339

Taxes Payable 0 2,885 3,725 4,956

Bank Borrowings 584 3,679 4,463 5,400

Cur. Mat. of L T Debt 0 5,070 4,695 4,193

Total Current Liabilities: 584 18,266 20,932 24,288

Long-term Liabilities

Allied Bank:

22
FEASIBILITY REPORT

Outstanding Loan Principal 14,758 11,806 8,855 5,903

Total Long-term Liab.: 14,758 11,806 8,855 5,903

Total Liabilities 15,342 30,072 29,786 30,192

EQUITY

Paid-up Capital (Sponsors) 9,839 9,839 9,839 9,839

Retained Earning 0 11,539 26,439 46,261

Total Equity: 9,839 21,377 36,277 56,099

Total Liabilities & Equity: 25,180 51,449 66,064 86,291

CASH FLOW STATEMENT:

ESTIMATED CASH FLOWS

(Rs. in 000)

Construction Year 2020 2021 2022

SOURCES

Operating Profit 0 15,120 19,710 25,207

Add Back: Depreciation 0 706 706 706

Amortization of Pre-Production
Expenses 0 62 62 62

Funds from Operations 0 15,888 20,478 25,975

Paid-up Capital (Sponsors) 9,839 0 0 0

Increase in Current Liabilities 0 17,682 2,666 3,357

Increase in Bank Borrowings 584 3,095 784 937

Decrease in Current Assets 0 700 0 0

Outstanding Loan Principal 14,758 0 0 0

TOTAL SOURCES 25,180 37,364 23,928 30,269

23
FEASIBILITY REPORT

APPLICATION OF FUNDS

Investment in Fixed Assets: 16,222 0 0 0

Preliminary Exp 185 62 62 62

Financial Expenses 1,246 2,361 1,869 1,367

Repayment of :

Debt 0 2,952 2,952 2,952

Taxes 0 2,885 3,725 4,956

Increase in current Assets: 7,332 0 1,416 1,692

TOTAL 24,984 8,258 10,023 11,027

FINANCIAL RATIOS:
Financial Ratios

2020 2021 2022

Gross Margin 27.4% 29.2% 30.6%

Operating Margin 25.6% 27.5% 29.0%

Net Margin 19.5% 20.8% 22.8%

Current Ratio 1.97 2.45 2.97

Cash Ratio 1.60 2.06 2.57

Debt/Equity Ratio 36% 20% 10%

IRR & PAY BACK PERIOD:

IRR 39%

Pay Back Period 2 Years Approximately

24
FEASIBILITY REPORT

Some of the assumptions were underlying during the preparation of

Financial Statements are as below;

 Sale price of chicks increase 15% yearly

 Purchase price of chicks Increase 15% yearly
 Purchase price of feed bags increase 15% yearly
 Account Receivable annually 5% of sales
 Accrued expenses annually 5% of sales
 Account payable annually 10% of material consumed
 Stores & Spares 10% of material consumed
 Initial net working capital is for 1 Flock
 Flocks per year 7
 Legal & Brokerage 4% on cost of land
 Stamp duty 2% on cost
 Registration cost of land 1%
 Transfer cost of land 1%
 Land is 1 Acre
 Cost of land per acre Rs. 1,500,000
 Annually tax rate 20%
 Depreciation rate of Machinery, Building and Furniture are 15%, 5% and
3% respectively
 Pre-Production expenses are amortized in 3 years
 Increase in wages 5% yearly
 General & Administrative expenses increase 2% annually
 Operating efficiency assumed in year 1,2 and 3 are 90%, 95% and 100%
respectively
 Equity portion 40%
 Debt portion 60%

25
FEASIBILITY REPORT

COMPERATIVE EFFECIENCY OF ENVIRONMENTAL CONTROL (ECH) AND

CONVENTIONAL OPEN-SIDE HOUSE:

The advanced pattern of condition control houses (ECH) in poultry

generation has acquired an extraordinary transformation poultry industry of
Pakistan in the ongoing years. This has understood an incredible obstacle of
warmth worry in the manner efficient business poultry generation. The ECH
with evaporative cooling framework, giving passage ventilation, giving the
breeze chill impact has notably improved the grill creation framework. The
innovation of ECH is quickly getting to be famous among oven makers
because of its following noteworthy points of interest;

The ECH cuts down the temperature by 10 to 15C when contrasted with the
customary open-sided houses (COH) and makes it agreeable like colder
locales.

ECH keeps up the uniform temperature nonstop giving helpful condition to

the grills evading change in the day and night temperature.

Because of serious warmth worry amid 4 long summer months the grill
generation is halted in COH, resultantly just 4-5 runs are conceivable in such
houses in a year. Nonetheless, in ECH 7 rushes are showcased with no break.

ECH being finished shut framework has limited the rate of sicknesses,
chopping down the expense of antibody and medicine i.e.Rs.2/winged
creature against Rs.5/feathered creature in COH.

26
FEASIBILITY REPORT

Mortality in ECH has been diminished to 2%-3% when contrasted with 10%
in COH.

Establishment of exceptionally motorized programmed encouraging and

areola savoring framework ECH has given the arrangement of manual and
poor administration rehearses. One houseman at daytime and one around
evening time are adequate to care for a group of 35,000 fowls. In COH about
6-8 housemen are required to oversee such a group.

Measure up to dispersion of feed and water to ovens through programmed

framework in ECH has extraordinarily improved the consistency up to 95%
when contrasted with 75% in COH.

In ECH an oven run is prepared for market in 35 days when contrasted with
42 days in COH.

An individual oven in COH for the most part expends 3 to 3.3 kg feed to put
on 1.5 kg weight mirroring its Feed Conversion Ratio (FCR) = 2 to 2.2.
Though this figure of FCR is improved to 1.8 in ECH.

GOVERNMENT POLICIES:

In Pakistan the concept of commercial poultry rearing, hatching and feed

milling was not known few decades ago. The back yard poultry was the only
source of enriched animal protein. In back yard rearing we didn't have the
real growing or laying birds.' In fact the birds were not kept for any kind of
financial gains; rather to rear poultry was like rearing kids. I mean they were

27
FEASIBILITY REPORT

only reared and cared either they are profitable or not. It was the start of
6th decade of the 20th century, when the Government of Pakistan felt the
need of intensive Poultry rearing program by keeping in view the increased
demand of white meat due to heavy growth in our 'population. So, it was in
1962 when Commercial Poultry was initially introduced in Pakistan by M/S
Shaver's of Canada with the help of PIA and that led to the formation of the
PIA Shaver with' the poultry sector.' In its embryonic stages became a blue
eyed to the government officials and the rearing or any kind of business
relating poultry was announced to be Tax exempted. The first hatchery was
then established in Karachi. Our government supported poultry industry in
all aspects that helped the industry to develop rapidly. As the Poultry was
new in the region, the disease problems were obviously expected also,
therefore in early 90's' Gumboro hits Broiler & Layer flocks and parent stock
suffered heavy mortality resulting in great economical losses. After that'
incidence the efforts were made to get things on track by addressing
Vaccination and Bio-Security issues very religiously. The shock was yet fresh
in the mind of the farmers and Poultry entrepreneurs when in mid 90's the
new disease caught the Parent Flocks in the Northern Areas (Abbotabad and
Mansera), where the mortality rate went up to 80% and the industry again
suffered grave losses .Again in very next year in 1996 due to increased
number of parent stock, the prices of chicken products fell down even below
the' cost of its production and the farmers again suffered heavy losses. This
down fall misery continued till 1997 and ban on marriage food was imposed
which reduced the consumption of poultry products by 40%. Late 90s led to
the phase of stability in the poultry industry and farmers got good profit
margin. New investors rushed into the poultry farming by adopting the new
techniques of environment control houses and industry shifted from
traditional conventional open houses to Semi and completely closed
automated houses where the intensive rearing is done under one roof. In
this transformation the industry shared huge investments from
multinationals and the poultry over all flourished till 2004. In 2004 Avian
Influenza hit the South East Asia and Pakistan Poultry Industry suffered

28
FEASIBILITY REPORT

heavily due its rumors. Imposition of ban on imports of poultry products by

Middle East countries made things more miserable. This scary condition of
the industry is yet prevailing. We experienced hike in the poultry market for
a few months and then a long phase of depression due to selling our
products below the cost of production. The Up's and Down's are with every
industry but poultry industry of Pakistan witness that quite too often.

PRESENT STATUS OF POULTRY SECTOR 2010:

I. Fixed Investment in poultry sector is over Rs.200 Billions.

II. Presently turnover of Pakistan Poultry Industry is about Rs.300 Billions.

III. There are about 25000 Poultry Farms in the Country.

IV. Poultry sector generates employment and income for about fifteen
hundred thousand people.

V. Poultry sector is one of the most organized branches of the agro based
sector of Pakistan. Its growth rate is 10-12% annually.

VI. At present over 50 Billions' of agriculture produce and Bio products of

agriculture are being used in poultry feeds.

VII. 40% of the total meat consumption is being procured from poultry
products.

29
FEASIBILITY REPORT

A. we are producing 7830 Million Table eggs.

B. 13,936 Metric Tons chicken meat annually.

VIII. In our Country per capita consumption of meat is only 7 KG and 60-65
eggs annually.
A. Whereas developed world is consuming 41 KG meat and over 300 Eggs
per capita per year.
B. No of Hatcheries 400
C. No of Feed Mills 150
D. No of People /dependant 1.5 Millions
IX. POPULATION
Broiler Breeder 8.5 Million Birds
Layer Breeder 0.428 Million Birds
Commercial Broiler " 8 .6 x 105 = 900 Million Birds
Layer Birds 29 Million Birds
Feed Consumption 5.51 M.M.T

PROVINCE WISE POULTRY STATISTICS:

1. BROILER

a. Broiler Grand Parent 200,000

b. Broiler Parent Stock 7.0 Millions

Punjab 68%

Sindh 2%

N.W.F.P 30%

Baluchistan

c. Commercial Broiler 700 Millions

30
FEASIBILITY REPORT

Punjab 70%

Sindh 23%

N.W.F.P 5%

Baluchistan 2%

2 .LAYER

d. Layer Grand Parent 4000

Punjab 100%

e. Layer Breeder 450,000

Punjab 67%

Sindh 25%

N.W.F.P 8%

Baluchistan

f. Commercial Layer 32 Millions

Punjab 61%

Sindh 32%

N.W.F.P 5%

Baluchistan 2%

3. FEED

5.5 M.T.

Punjab 82%

Sindh 18%

N.W.F.P

(Pakistan Poultry Association)

31
FEASIBILITY REPORT

RECOMMENDATIONS:

In Pakistan the concept of commercial poultry rearing, hatching and feed

milling was not known few decades ago. The back yard poultry was the only
source of enriched animal protein. In back yard rearing we didn’t have the
real growing or laying birds. In fact the birds were not kept for any kind of
financial gains; rather to rear poultry was like rearing kids. They were only
reared and cared either they are profitable or not.

It was the start of 6th decade of the 20th century, when the Government of
Pakistan felt the need of intensive Poultry rearing program by keeping in
view the increased demand of white meat due to heavy growth in our
population. So, it was in 1962 when Commercial Poultry was initially
introduced in Pakistan by M/S Shaver’s of Canada with the help of PIA and
that led to the formation of the PIA Shaver with the poultry sector.

We conclude that on the basis of field work and survey of control shed that
the meat is necessary product so its demand increases day by day. There is no
chance to decrease the demand of meat. Availability of raw material is very
easy. So, conclusion is that the control shed is a profit motive business
because no chance of decrease of demand.
Our recommendation to new investors is that they must invest in control shed
because from the last 5-6 year there is a great change or entrance of new
control shed in Pakistan. So, they step forward to come and invest or to start
this business, and also contribute in the economic as well as social growth of
Pakistan.

Conclusion:

The poultry ranch is an undertaking of animals division, in which, the day old
chicks (DOCs) are raised on high protein feed for a time of about a month

32
FEASIBILITY REPORT

and a half. Oven meat is the least expensive wellspring of creature protein
accessible in the nation. The time required for raising oven feathered
creatures is lesser than that for expansive creatures. The utilization of white
meat is expanding because of developing wellbeing cognizance in the
majority. Grill cultivating is a gainful endeavor because of ceaseless
expanding request of the meat in the market. Every year, seven runs of
fowls will be raised on similar premises of the ranch. The oven feathered
creatures are sold to merchants and the entire dealers’ showcases in the
urban zones. A few times winged creatures can likewise be sold legitimately
to the retailers in the urban markets.

33
FEASIBILITY REPORT

References:

SWOT Analysis (Strengths, Weaknesses Opportunities, Threats). 2019. SWOT Analysis (Strengths,
Weaknesses Opportunities, Threats). [ONLINE] Available at:
https://www.mindtools.com/pages/article/newTMC_05.htm.

The Balance Small Business. 2019. Executive Summary Example - Business Plan. [ONLINE] Available at:
https://www.thebalancesmb.com/business-plan-executive-summary-example-2948007

Diffen. 2019. Balance Sheet vs Income Statement - Difference and Comparison | Diffen. [ONLINE]
Available at: https://www.diffen.com/difference/Balance_Sheet_vs_Income_Statement.

Rational Funds. 2019. Rational Income Opportunities Fund ( RTFAX | RTFCX | RTFIX) - Rational Funds.
[ONLINE] Available at: http://rationalmf.com/funds/rational-income-opportunities-fund/

Study.com. 2019. What is Market Analysis? - Definition & Examples - Video & Lesson Transcript |
Study.com. [ONLINE] Available at: https://study.com/academy/lesson/what-is-market-analysis-
definition-examples.html.

Scribd. 2019. Control shed | Poultry | Poultry Farming. [ONLINE] Available at:
https://www.scribd.com/doc/32930956/Control-shed.

34