Standard Poultry and Catfish

Integrated Business Plan with 

1)      Executive Summary:- This poultry and fish integrated production
business is the most relevant one for national and international choice of food
supply opportunity. Creating advantages to answer the large amount of local
and international food demands using ignored opportunities and sources is
remarkable idea. The economic aspect of around the project area and the
country foreign currency will be increase as soon as implemented.

This project is targeted on producing poultry and fish products by recycling

wests of this two main types farming. It focuses on using west of these two
projects either side and increases the production rate as one.

The products will be available for local and foreign markets with optimum price.
These market areas will be chosen the company interest ratio, local and foreign
demand and The national government legal tax. The market study production
process and implementation techniques are pointed in detail below.

The summary includes introduction, products and services description,

marketing and sales among others

3)      Company Overview: this includes

Vision

To see that the national poultry commodity which is capable of providing high
quality integrated poultry and fishery production for local and foreign market
that contributes to economic transformation, improved livelihoods and
sustainable development.

1. Mission Statement

Mission of this project is introducing integrated farm based poultry and

fish product of high-quality, differentiated, market-engaging food
products coupled with value-adding stories about people, land, and
practices. Creating trust-based business partnerships with different
relative project types and business groups , and installing an effective
management of the supply chain.

2. History and Current Status

Poultry
Ethiopia has diverse agro-ecology and landscapes that supports the
existence of different animals and plants. Poultry and fishery are being
 kept by village farmers and fisherman who live in all agro ecologies of
Ethiopia.

Poultry populations can be categorized into; wild populations,

indigenous and local breeds that are unselected but domesticated,
selected breeds for morphological traits mostly by fanciers, selected
lines for quantitative traits such as industrial layers and broilers, and
experimental research lines (Weigend and Romanov, 2001). The
villages of Ethiopia largely consist of the indigenous non-descriptive
breeds. They vary in plumage color, comb type, body conformation and
weight and may or may not possess shank feathers (Halima, 2007).
Recent advances in molecular genetics and genomics has given more
insight into the diversity of indigenous chickens. Molecular
characterization of indigenous chicken in Ethiopia, Uganda, Sudan and
Kenya showed wider diversity among chicken population in the
countries (Mwacharo et al., 2007). The diversity was further shown in
immunity traits (Ngeno et al, 2014). In recent study in Ethiopia,
indigenous chickens namely Horro and Jarso showed variations (single
nucleotide polymorphisms) potentially associated with two major
poultry diseases (Psifidi et al., 2014).

Fishery
The history of research on fisheries dates back to the 1930s associated
with the Italian invasion. More systematic research involving Ethiopian
scholars was associated with the opening of Graduate programs at the
Addis Ababa University and associated doctoral research was made in the
1980s and 1990s. Lake Fisheries Development project (LFDP) which was
initiated by the Ministry of Agriculture contributed in training and capacity
building of the lake fishery in the country (LFDP, 1996; 1997). For the first
time in the history of research, fishery has been recognized as one of the
research commodities in the Ethiopian Agricultural research system in
1997 under the then Ethiopian Agricultural Research Organization (EARO)
through the Proc. No. 79/1997. With this consideration a 15 years
strategic document (2000 -2015) was developed to undertake strategic
researches focusing on lake fisheries management and sustainable
production.

3.Markets and Products

Poultry
Better production and productivity of poultry can be achieved with the
application of inputs, better management, nutrition and disease
prevention and control.
 Layers
Layer farming is the raising of egg laying chicken egg production. Layer
chickens start laying eggs commercially before they reach 18 weeks of
age and continue until they reach 72-78 weeks of age in most cases.
In a highly commercialized poultry producing countries egg layers are
kept to 13 months in production. The breeds are regarded as efficient
by producing a kilogram of egg with a feed not more than 2.5 kg.
There are two types of egg layers: the white and the brown egg laying
hens. The white egg laying types of hens are comparatively smaller in
size, relatively eat less food, and the color of egg shell is white. The
brown egg laying hens are relatively larger in size; eat more foods,
compared to white egg layers, lay bigger eggs than other laying breeds
and lay brown shell colored eggs.

Tabel 1. Production status of annual poultry eggs, hen, in shell

No Country Production in Ethiopia %
tons share

1 Ethiopia 41,000 -
2 East Africa 420,850 9.7%
3 Africa 3,082,367 1.3%
4 World Total 68,262,486 0.1

Source: (FAOSTAT, 2016)

Even if there is no recorded evidence indicating the exact time and

locations of introduction of the first batch of exotic breeds of chickens
into Ethiopia for genetic improvement, it is widely believed that the
importation of exotic breeds of chicken goes back to the early
1950s.Yet with large poultry population (more than 60 million) (CSA,
2016), Ethiopian layer industry remain highly undeveloped and
unorganized with annual egg production not more than 96 million
(CSA, 2016).

Broilers
Broiler products dominate the international poultry trade (Moore and
Morgan, 2006). Trade in poultry meat is projected to increase at a
faster rate than production and consumption (FAO, 2007). Almost all of
 the broiler breeds are imported from abroad as parent stock. Small
scale commercial broiler farms source day old broiler and grow them
for the period of about two months. The annual estimated production
of poultry meat in Ethiopia is 61,840 tons, which also represent
represents 0.1% share of the world production and 11.7% of East
Africa (Table 2). Ethiopian

Livestock Master plan set a great plan to increase chicken meat

production to 164,000 tons and eggs to 3.9 billion by the year 2020
through improved family poultry (IFP) and expanded specialized
poultry. Different institutions including EIAR and large commercial
private poultry farms are importing broiler breeds. Some of the
imported breeds a dopted in our countries are Hubbard-JV, Hubbard-
classic, Rose-308 and Cobb-500. There is no any broiler breeds
improved and developed in the country. The country spends huge
amount of hard currency for importing grandparent and parent breeds
of broilers.

Tabel 2. Status of annual poultry meat production

No Country Production in Ethiopia %

tons share

1 Ethiopia 61,840
2 East Africa 527,002 11.7
3 Africa 4,731,771 1.3
4 World Total 96,141,163 0.1

Dual purposes
Dual purpose chickens were well adopted under small holder farmer
conditions. They are most appropriate for poultry producers who are
interested in both egg and growth traits equally. Their better
adaptations to wider agro-ecologies and less management requirement
made them the right choice in villages. The most widely used dual
purpose chicken in Ethiopia was RIR. It was used as paternal line with
ISA brown layers to produce a cross bred with both traits. Fayoumi
breed has been imported with the expectation of better productivity,
adaptation and disease resistance than the other exotic breeds in rural
setting of Ethiopia. Fayoumi was alert, adaptive layer chicken lived for
many years in the warm areas of Egypt. In recent years, Koekoek was
widely distributed across the country and highly liked by village
producers. Recently, dual purpose Koekok breed performed well and
adopted by most of small holder farmers in the country. There is also
an effort done for dual purpose indigenous Horro breed improvement
through a mass selection (Wondmeneh et al., 2015).

Economy
Poultry has a potential to be economic development engines of the
country. The country designed livestock development master plan
along with GTP II by giving focal attention to poultry, dairy and meat
production as they are key instruments in ensuring food security and
nutrition. Poultry eggs and meat is one of a livestock sector yield
enjoying top attention that helps in addressing food and nutrition
shortages (The Ethiopian Herald, September 17, 2016 edition.
http://www.ethpress.gov.et/herald; Accessed date September 25,
2016).There are emerging small and large commercial farms make a
great contribution, to meet the rapidly growing demand for poultry
products especially in urban, peri-urban and growing regional cities
(Emebet and Kidane 2016). The commercial poultry production system
contributes nearly 2% of the national poultry population in Ethiopia. In
Ethiopia, there is significantly lower contribution of poultry production
to the overall national economy than that of other African countries
(Alemu and Tadelle, 1997).Objectives.

Fishery
The history of research on fisheries dates back to the 1930s associated
with the Italian invasion. More systematic research involving Ethiopian
scholars was associated with the opening of Graduate programs at the
Addis Ababa University and associated doctoral research was made in
the 1980s and 1990s. Lake Fisheries Development project (LFDP)
which was initiated by the Ministry of Agriculture contributed in training
and capacity building of the lake fishery in the country (LFDP, 1996;
1997). For the first time in the history of research, fishery has been
recognized as one of the research commodities in the Ethiopian
Agricultural research system in 1997 under the then Ethiopian
Agricultural Research Organization (EARO) through the Proc. No.
79/1997. With this consideration a 15 years strategic document (2000
-2015) was developed to undertake strategic researches focusing on
lake fisheries management and sustainable production.
 Objective
The objective of the project is to enhance the feasibility and economic
contribution of the integrated Poultry and fishery sector by providing a
profitable and sustainable production through modern and technology
based processing method. This objective will be achieved by:

 enhancing the poultry sector with appropriate technologies

 Adopting a suitable integrated poultry and fishery
technology across the value chain
 ensuring quality and safety of poultry product that meet
consumers demand
 providing a research framework with which stakeholders
can plan for the future

4.Keys to success
4)      Product or Service description.

Poultray

5)      Industry and Market Analysis

1.Introduction
The Poultry industry is an essential sector of the agricultural domain.
Production of eggs and chicken in general is a thriving venture option
that proves to be profitable. In the US alone, an annual sum of ten billion
dollars is made in the poultry sector with a steady growth rate of six
percent each year. As a result of these numbers, major government
subsidies are enforced for fertilizers, seeds, and farming equipment
required by poultry ventures.

2.Industry analysis
3.Market analysis
Import substitution Ethiopian trade in poultry and poultry products is
limited to the import of live birds. The private and public large scale
intensive poultry farms are mainly dependent on the import of day old
chicks from abroad. In 2005, a total of 736,000 day old chicks had
 been imported from the Netherlands, Saudi Arabia, Egypt, UK,
Germany, and Kenya (Goutard & Magalhaes, 2006).

Large amount of poultry product particularly, broiler meat is imported

from abroad for international star hotels and Ethiopian airlines. Due to
quality standards and disease problems, the country forced to import
large amount of broiler meat annually. Import value of chicken showed
that (Table 3 and4), the country spent 106 thousand US dollar in 2013
and more than 650 thousand in 2015. These large amounts of foreign
currency need to be substituted either through adopting appropriate
technologies and/or generating technologies like, breed improvement
and producing international quality standard poultry products. There
are various opportunities available to commercial poultry producers for
processing, hatchery expansions and maximize production bases to
develop exports to neighboring countries and the world. Attractive
investment policy of the country can help to boom the industry through
supply of raw materials, equipment, medication and vaccines which
can contribute safe and quality poultry products.

Tabel 3. Ethiopia Import Value of Chickens (1000 US$)

Year 2005 200 2007 2008 2009 2010 2011 2012 2013

Valu 35 36 76 534 0 0 60 59 106

e

Source: UN Comtrade (2016)

Tabel 4. International trade in poultry meat import in Ethiopia during

2015
Partner Trade Value in USD Net weight (kg)

World 329,786 115,550

Areas, nes 155,389 60,580
Brazil 68,061 24,093
Ukraine 56,582 21,432
Turkey 27,762 5,769
France 8,070 1,036
South Africa 7,686 766
USA 5,585 1,780
Norway 651 95
Total 659,572.00 231,101

Source: UN Comtrade (2016)

Export market and foreign currency earnings

The poultry industry in Africa has grown and developed steadily over
recent years. Ethiopia is now become one of the top countries in Africa
for chicken industry investment (Africa.com). Even though, major
projects of large commercial poultry operations are planned in our
country, the export of poultry meat is almost nil (Table 5).

Tabel 5. International trade in poultry meat export of Ethiopia during

2015
Partner Trade Value in USD Net Weight (kg)

World 134 80
Saudi Arabia 134 80
Total 268.00 160

Source: UN Comtrade (2016)

Fishery

Capture fishery

As one of the main commodities of the livestock sector, the capture

fishery contributes a great deal in providing cheap protein source and
means of income and livelihood for the people. The annual fish
production from the capture fishery has increased by nearly four to five
folds from less than 10,100 tons/year in the 1990s to over 50000
tons/year in 2015 (MoLF, 2016). On the other hand, the fish production
potential of the capture fishery from major lakes, reservoirs, small
water bodies and rivers was recently reported to be 94500 tons/year
(Gashaw &Wolff, 2014). Official report by the ministry also showed
that over half million people are either directly or indirectly engaged in
the fishery sector as a means of their livelihood nationwide. However,
despite its increase in fish production and economic importance, the
 per capita fish consumption in Ethiopia is still quite low (<0.5 kg/year),
compared to the global per capita fish consumption (18.4 Kg/year) and
the mean per capita consumption of Africans (9.1 kg/year) (FAO,
2014). Ethiopia is one of the least fish consuming countries by any
standard. This could be because of the meat consumption habit of the
people which is around 8.4 kg/year. On the other hand, the fish
consumption habit of the people in the Rift Valley and major rivers like
River Baro in Gambella area is quite high (8-10 kg/year). This indicates
that food habits of local communities are governed by the availability
and supply of fish in the market.

Table 1 Fish production potential estimates from water bodies of

Ethiopia (Modified from Gashaw and Wolff, 2014).
Major water Area (km2) Length (km)
bodies

Major lakes 7740 38727

Major reservoirs 1447 8059
(area >10 km2)
Major rivers 6665 15974
Miscellaneous 1400 5426
small rivers
Small water 4450 26314
bodies(area <10
km2)
Total 13637 8065 94500

Fish diversity
Over 200 different fish species have been reported from the country, of
which some 40 are endemic to the country and 10 are exotic species
that are introduced into the country (Shibru Tedla & Fisseha Haile
Meskel, 1981; Golubstov & Mina, 2003; Redeat Habteselassie, 2012)
(Table 2; See also the list in the annex). These fish inhabit rivers, lakes
and small water bodies situated in different agro-ecologies ranging
from the extremely desert like climate in Lake Afambo (-150 m below
sea level) to the Bale highland rivers such as River Woyib where the
water temperate is conducive to raise and propagate the exotic
temperate species like trout fish. Therefore, the presence of such
 diversified climatic conditions and aquatic habitats enhance
diversification of fish adapted to different ecological conditions.
Although diversity of fish in the country is quite large, only hands full
of fish species are commercially important. Some of the fish species
that contribute to the capture fishery include the Nile tilapia,
(Oreochromis niloticus), African catfish (Clarias gariepinus), the Nile
perch (Lates niloticus), Labeobarbus spp the common carp (Cyprinus
carpio) etc. Major bottle necks and research gaps in the capture fishery
have been reported to be overfishing, use of destructive and illegal
gears, aquatic pollution, soil erosion and siltation, excessive water
abstraction limited knowledge on the biology and production potential
of commercial fish etc (LFDP, 1996, 1997; Rientjens & Tesfaye
Wudineh, 1997).

Table 2 The diversity of fish species in major river basins of Ethiopia

(Golubstov & Mina, 2003).
Drainage Family Genera Species Endemic Exotic
basins

Atbara- 9 22 34 3 2
Tekeze
Blue Nile 15 37 77 24 1-3
Basin
White Nile 24 59 111 6 _
Basin
Rift Valley 10 18 28-31 5 4
Basin
Wabe- 11 21 33 10-17 2-3
Shebel-
Juba
Omo- 19 41 76-79 8
Turkana
system
Total 70 181-200 40 10

4.Customer analysis
 5.Competitor analysis
6.SWOT Analysis
Strength Weakness Oportunity Threat
Strong markate Expensive Good Natural Unpridicted
analysis and construction environment or expansion
link. technique natute character of the
lake
Related Supportive
rofetionals of Government
share holders agricuktural
strategy and
policy
Modern and Olternative
machinary feed sources
supported
production
method
Product quality
targeted service
stratrgy

6)      Marketing Strategy

1. Target Market Strategy

The campany marketing strategy is well studied and pre structured depending on
demand of the product. According to current market situation our prior aim is
responding the scrcity of such products and saving the country currency which is wested
due to import. We are constructed the strayegy of spreading our market web through
out the country.

2. Product/Service Strategy

Quality poultry and fishery products must be supplied for our clients. This will be secured
by quality and standard breeding, processing and distributing the product.
 3. Pricing Strategy

The price will be named after calculating the total expence per product unit and adding
the standard interest ratio.

4. Distribution Strategy

The company strictly focuses on distributing the product like breeding and processing
period. It must be safe and healthy to keeping up the quality of the product. We have
planned healthy product transport system of the campany.

5. Advertising and Promotion Strategy

Although we believe in the real promotion is our quality product we will use different
modern promotion and advrtising methods to boost our market and introduce the
product immediatly. This methods could be like using privet and government product
services, fliers, banners, internate and scocial medias etc...
7)      Operations

1. Operations Strategy

This campany have a plan to invest on poultry and fishery products simultaniously. These
two types of breedings will be toghether supporting each other in different ways. The
west of poultry is directky a feed for fishes which are breeding below the cages. Again
the west which is produced after the fishery product is processed like skin, bone and the
other parts of the fishery will directly processed to be poultry feed. This will reduce the
expense that could be invested on preparin it in other way.

The upper part of the farm is a poultry cage and below is a pond for fishery production.
The egg collection and feeding process will oprated with machinary. There are
processing unit and dry and wet storages for egg and meet products. All the process is
safe and healthy.

Our medical team is the most responsible for seccuring these deases sensetive farm type
and controlling the health of the environment. It has medical pharmacy department that
could safeguard the disaster could be happen by eppidemic deasese.

2. The scope of Operations

The campany will ahve anuall poultry product of ------- kg meat and ------ kg egg and
fishery product of -------- kg meat. These products will be distrubted for any custmer type
who can afford it.
8)      Development
 1. Development Strategy

The siye is located in metehara city haro adi kebele beside lake beseka. This site
selection is aimed at inyegrating the pond with the part of the the lake beseka to reduce
the oppration coast that will spend to control water level of the pond. It lies on the
drainage line which constructed from lake beseka to awash river to

2. Development Timeline
3. Development Expenses
9)      Management

1. Company Organization
2. Management Team
3. Administrative Expenses
10)   Summary of Financials

1. Financial Assumptions
2. Financial Forecasts
3. Projected Cash Flow
4. Income Statements
iii.      Balance sheet

1. Profit and loss

2. Profit Margin, chart etc
3. Financial Risks
11)   Appendices

Support for Product/Service Description (e.g., diagrams, pictures, etc.)

Financial Statements

 Income Statement [3 years]

 Balance Sheets [3 years]
 Cash Flow Statements [3 years]
 Ratio Analysis [3 years]
 Other supporting financial statements