Executive Summary

Norton project has been operating since 2015, the business rears broiler chickens and the
major markets have been (market infor and value) The Norton project has a possible market
of US$50 000(confirmed orders)
The business requires working capital and strategic expenditure of US$10 000 payable in 90
days.

Project Summary- introduces the project and gives a brief background to the business

Ranga Chickens is in its first year of production. It produces at least five hundred chickens
per batch, per month. The production takes place at number 19 Mzari Avenue, Chinhoyi. The
chickens are currently sold at supermarkets, butcheries and restaurants such as TM, Greens
Supermarket, Valley Meats, Simba Butchery, Blessed Restaurant, Super Snacks Restaurant,
to mention a few. During production, we currently use the four phase feeding scheme,
supplied by National foods. Chickens are sold for $3.00 per kilogram.

Company background – Registration information

Due to the recent ban of Genetically Modified Foods (GMOs) poultry products, there has
been an increase in demand for chickens in Zimbabwe.
Ranga Chickens is in its first year of production. It produces at least five hundred chickens
per batch, per month. The production takes place at number 19 Mzari Avenue, Chinhoyi. The
chickens are currently sold at supermarkets, butcheries and restaurants such as TM, Greens
Supermarket, Valley Meats, Simba Butchery, Blessed Restaurant, Super Snacks Restaurant,
to mention a few. During production, we currently use the four phase feeding scheme,
supplied by National foods. Chickens are sold for $3.00 per kilogram.
Environmental Scanning
The section that follows details the context within which this plan is developed, highlighting
the major strategic considerations for the business.
SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the
company, and describes the opportunities and threats faced by our company
Strengths
• Our company will produce broiler chickens of high quality and a continual supply of
chickens to customers.
• There is plenty of water supply at our farm
• Experienced owner-operator
• Good breed of broilers
Weaknesses
• Limited Capital
• High feed costs
• Little negotiation power with buyers due to high competition
• No transport of our own
Opportunities
• The demand for poultry broiler meat is large and ever increasing. It is one business
that the opportunity for growth ever remains large. Continuous exploitation and expansion
will be the status of the industry for a long time.
• Strategic alliances offering sources for referrals and joint marketing activities to
extend our reach. This will increase our market share and hence the profit.
• Internet potential for finding more customers. Many poultry businesses are not fully
utilising the internet to find potential customers.
• Purchasing a cold van for distribution of cold chicken to an ever demanding
restaurant, cold rooms, eateries and hotels is an opportunity waiting to be tapped.
• There is a room to expand to other animal farming activities like layers, rabbits, pigs
and cattle fattening.
• Growing market
• Cheap labour in the market
Threats
• Disease outbreak
• Decline in chicken demand
• Low market prices for chicken
• Change in government regulations
• Increase in feed costs
• Chicken imports

PEST analysis
We understand that our business is affected by Political, Economic, Social and Technological
factors. Below we look at how those external factors may affect our business and the
assumptions we have made in making this business plan.
Political
Change in regulations which affect the agriculture sector especially poultry farming will
affect us. New legislation may create risks of non-compliance with the law, or create new
administrative burdens. The tax policies of the Government of Zimbabwe will affect the
operations of our business. If the government of Zimbabwe increases the taxes for poultry
companies it will affect the profitability of our business. Political instability like wars,
protests will affect our business. Changes in employment laws, safety regulations especially
those targeted to the agriculture industry will affect the operations of our business. Changes
in import tariffs of our inputs or competing products will affect our business. We expect
political stability to continue in Zimbabwe, and we do not expect any significant changes in
the regulations by the government of Zimbabwe.
Economic
Liquidity crisis in Zimbabwe which is currently in Zimbabwe will likely continue for the
coming years. This has caused high interest rates. The high interest rates affect the cost of
capital, the rate of interest being directly proportionate to the cost of capital. Rate of
inflation determines the rate of remuneration for employees and directly affects the prices
of our services. Again, the proportion between the inflation rate and wages/prices is direct.
Economic trends act as an indicator of the sustainability and profitability of our business in
Zimbabwe and will help us determine the right marketing strategy. IMF and World Bank are
re-engaging with Zimbabwe, and dollarization also led to the recovery of the Zimbabwean
after a decade of recession. These factors point to economic growth of our Zimbabwean
economy, which will mean more business for the industry as the economy becomes more
active and more people get higher disposable income. The bond notes were introduced in
2016 and these have helped ease the liquidity challenges however they have increased
uncertainty in the economy, with fears of high inflation rates.
Social
We expect the population growth will continue in Zimbabwe. This will mean more potential
customers and greater demand. We expect that the current HIV-AIDS campaigns which are
being carried out by the government and Non Government Organisations, will make people
more health conscious, and will lead to a reduction in the cases of HIV-AIDS which will imply
a healthier work force. We expect that the health facilities in Zimbabwe will continue to
improve as the economy recovers, meaning more people will have access to drugs.
Technological
Technological improvements can lead to the production of more efficient feed. A good
technical infrastructure would lead to better production, procurement and distribution
logistics, resulting in reduced wastage and lower costs.

External environment
Porter’s five forces

Internal environment
SWOT analysis

Product offering
Organically grown Chickens

Business model
Value proposition- organically grown nutrition
Key resources – infrastructure
Relationships –major markets
Revenue streams –sale of chickens, by-product manure
Cost structure- Financials?

Value chain-how do you guarantee continuous production

Infrastructure – plot size, capacity of fowl runs, availability of water, strategic location of
plot,
Supply side – day old chicks-if there are supplier contracts attach
- Feed
Market- is there guaranteed market ?, what is the size
What is the nation’s chicken needs per month/per annum

Key personnel and relevant experience

Impact of the venture
 Reduced import bill
 Creation of employment for the Norton community
 Other downstream and related industries benefit, butcheries and vegetable farmers
form the manure by-product

Stakeholder needs analysis

Needs and extent of the need

Production
Day Old Chicks
The mortality rate of the broilers, their growth and weight will depend on the brand of day
old chicks which you buy. Some brands grow slower, and have a high mortality rate. Stock
should be purchased from a reliable hatchery or dealer where the parent stocks are well
housed and well managed. When buying day old chicks, select/buy only healthy chicks (i.e.
dry, fluffy feathers, bright eyes, and alert and active appearance; free from diseases, and
abnormalities; chicks should have uniform size and colour; and in the case of broiler chicks, it
should be less than 33 g. at day-old). Choose those that have high liveability and are fast
growers. The popular day old chicks’ providers in Zimbabwe include Irvine’s, Hubbard, Fivet,
Chinyika and Novatek.
Key Management Requirements-Chick placement
• Place chicks from similar age and flock source in a single house.
• Placement per farm should ensure an “all in-all out” regime.
• Delays in placement can contribute to the dehydration of chicks, resulting in higher
chick mortality and reduced growth rate.
• Transportation must provide ideal conditions for the chicks and the delivery time
should
be as short as possible.
• Lower the light intensity during chick placement to reduce stress.
• Chicks must be carefully placed and evenly distributed near feed and water
throughout
the brooding area. When using supplemental feed on paper, place chicks on the paper.
• Weigh 5% of the boxes to determine day old chick weight.
• Lights should be brought to full intensity within the brooding area once all chicks
have
been placed.
• Following a 1-2 hour acclimation period, check all systems and make adjustments if
necessary.
• Monitor the distribution of the chicks closely during the first few days. This can be
used
as an indicator for any problems in feeder, drinker, ventilation or heating systems.
Operational Strategy
Production Cycle
The production cycle for the project is 52 days, of which 42 days is for the actual production
and 10 days for disinfection of the fowl runs until the next cycle has commenced, therefore
there are 7 cycles in a year. Thus the birds will be 6 weeks old when they are sold, weighing
approximately 2.4Kg. The average dressed weight of the birds is estimated to be 1.67 Kg.
The mortality rate of 5 % is also taken into account even though it might be lower than 5 %
or higher if there is poor management.

Selling the broilers

On day 52 of the production cycle, the broilers will be 42 days old, and thus when they are
going to be sold. Live broilers are going to be supplied to the customers who would have
placed the orders, and all the remaining birds will be slaughtered, dressed and sold to
customers.
Communication with customers
Good communication with customers is critical. Talk to them, survey them and have a
suggestion box. Listen to what they say. Find out what they want and whether they're
getting it. How big do they want their chickens? Will they buy the gizzards or livers? What
else do they want that the producer can provide? Listen to what they say.

Develop a customer database to track customer orders and desired products. Maintain and
use it. Use product draws and specials to expand the database. If a customer has a special
request, do the best to provide it, as long as it is profitable.

Marketing Strategy

Our company will attempt to rapidly achieve awareness in Harare about its business in the
first year. To be successful in this business, you should have many customers. Thus it is of
great importance to have a solid marketing strategy, in order to distinguish ourselves and
gain more customers. Our marketing strategy is based upon the marketing mix, which are
the 4 p’s of marketing, which are product (service), price, promotion and place (distribution).
Product/Service
We will sell high quality meat and healthy broilers to our customers. Customers will be
pleasantly surprised at how attentive we are in regards to their needs. The business
operates on the assumption that it will do whatever is reasonably necessary to keep the
customer happy. This reflects the notion that if the customer is kept happy; long-term
profits are ensured.
Chickens are currently priced per kilogram. These are usually dressed and placed in sacks.
When they are delivered, they are weighed. In some instances, chickens are usually sold per
bird. In such cases, these will be sold for a specific price, for example those which weigh 1.4-
1.7 kilograms (kgs) can be sold for US$5. Chickens sold as cutlets will be weighed and sold
according to their weight. These are usually weighed as either 1kgs or 2 kgs.

The following points will determine the price of the chickens:

➢ Production costs. The feed, chicks will be supplied by the contractor on contract
farming. However when I am marketing and selling on my own, the cost of production will
determine the price of the products. We will plant maize and soya beans, which will act as
supplements thereby lessening the cost and this will bring down the price. Other factors
include, labour costs, wood shavings, vaccines, disinfectants and so forth.
➢ Marketing costs. The cost incurred during marketing the products will be added to
the final cost of the chickens.
➢ Demand and supply will also affect the pricing of the chickens. If the demand is very
low, prices will also be low as to gain a market share. If however demand is high, the prices
will increase a little so that we gain profit.
➢ The market. When doing contract farming, the contractors will do the marketing of
the chickens. The availability of a market will also determine prices. If the market is available
then the prices will be a little higher compared to when the market is flooded.

Price
We will try and minimize our production costs so that we can offer a more competitive price
on the market. We will use feed concentrates which we will mix with our own maize in order
to reduce feed costs. The prices of our products will be determined by the market forces,
and we will not try to lower our prices below the industry’s average as that will affect our
profitability. By using the market’s prices, all our products will be bought, so there is no need
to lower our prices. We will not try to increase our prices above the industry’s average, as
we will lose our customers as the prices are very elastic. We will offer discounts to those
who buy in bulky to gain customer loyalty.
Promotion
We will use various ways of promoting our company so as to gain more customers and
increase general awareness of our farm and the services we offer.

Risk Assessment
Risk Analysis
These risks could materially adversely affect our business, financial condition or results of
operations. Additional risks and uncertainties not currently known to us or that we currently
deem to be immaterial also may materially adversely affect our business, financial condition
or results of operations.
Fluctuations in the availability and price of raw materials, especially stock feeds, maize and
soya meal and other inputs could negatively impact our earnings.
Our results of operations and financial condition, as well as the selling prices for our
products, are dependent upon the cost and supply of commodities and raw materials such
as stock feeds, maize and soya meal. Production and pricing of these commodities are
determined by constantly changing market forces of supply and demand over which we have
limited or no control. Such factors include, among other things, weather patterns
throughout the world, outbreaks of disease, the global level of supply inventories and
demand for grains and other feed ingredients, as well as agricultural and energy policies of
domestic and foreign governments.
Volatility in our commodity and raw material costs directly impact our gross margin and
profitability. The company’s objective is to offset commodity price increases with pricing
actions over time. However, we may not be able to increase our product prices enough to
sufficiently offset increased raw material costs due to consumer price sensitivity or the
pricing postures of our competitors. In addition, if we increase prices to offset higher costs,
we could experience lower demand for our products and sales volumes. Conversely,
decreases in our commodity and other input costs may create pressure on us to decrease
our prices.

Outbreaks of livestock diseases can adversely impact our ability to conduct our operations
and demand for our products.
Demand for our products can be adversely impacted by outbreaks of poultry diseases, which
can have a significant impact on our financial results. Efforts are taken to control disease
risks by adherence to good production practices and extensive precautionary measures
designed to
ensure the health of our broilers. However, outbreaks of disease and other events in
Zimbabwe, which may be beyond our control, in our own poultry farm could significantly
affect demand for our products, consumer perceptions of certain protein products, the
availability of livestock for purchase by us and our ability to conduct our operations.
Outbreaks in our own poultry farm may lead to the death of all our broilers. Moreover, the
outbreak of livestock diseases, particularly in our Chicken segment, could have a significant
effect on the livestock we own by requiring us to, among other things, destroy any affected
livestock. Furthermore, an outbreak of disease could result in governmental restrictions on
the import and export of our products to or from our suppliers, facilities or customers. This
could also result in negative publicity that may have an adverse effect on our ability to
market our products successfully and on our financial results.
If our products become contaminated, we may be subject to product liability claims and
product recalls.
Our products may be subject to contamination by disease-producing organisms or
pathogens, such as Listeria monocytogenes, Salmonella and E. coli. These organisms and
pathogens are found generally in the environment; therefore, there is a risk that one or
more, as a result of food processing could be present in our products. These organisms and
pathogens also can be introduced to our products as a result of improper handling at the
further processing, foodservice or consumer level. These risks may be controlled, but may
not be eliminated, by adherence to good manufacturing practices and finished product
testing.
This may lead to increased risk of exposure to product liability claims, increased scrutiny and
penalties, including injunctive relief and plant closings by Zimbabwe regulatory agencies, and
adverse publicity, which could exacerbate the associated negative consumer reaction. Any of
these occurrences may have an adverse effect on our financial results.
Changes in consumer preference could negatively impact our business.
The food industry in general is subject to changing consumer trends, demands and
preferences. Trends within the food industry change often, and failure to identify and react
to changes in these trends could lead to, among other things, reduced demand and price
reductions for our
brands and products. We strive to respond to consumer preferences and social expectations,
but we may not be successful in our efforts. We could be adversely affected if consumers
lose confidence in the safety and quality of certain food products, or the food safety system
generally. Prolonged negative perceptions concerning the health implications of certain food
products or loss of confidence in the food safety system generally could influence consumer
preferences and acceptance of some of our products and marketing programs. Continued
negative perceptions and failure to satisfy consumer preferences could materially and
adversely affect our product sales, financial condition and results of operations.
New or more stringent Zimbabwean government regulations could impose material costs on
us and could adversely affect our business.
Changes in laws or regulations that impose additional regulatory requirements on us could
increase our cost of doing business or restrict our actions, causing our results of operations
to be adversely affected. The government of Zimbabwe may remove the high import duty on
poultry products. This will lead to the Zimbabwean market being filled with cheap imported
chickens, which will be difficult to compete with. Thus the demand of local chicken will
decrease, and it will also force the prices of our products down, which will adversely affect
our product sales, financial condition and results of operations.
Deterioration of economic conditions could negatively impact our business.
Our business may be adversely affected by changes in Zimbabwe economic conditions,
including inflation, interest rates, consumer spending rates, energy availability and costs and
the effects of governmental initiatives to manage economic conditions. Any such changes
could adversely affect the demand for our products, or the cost and availability of our
needed raw materials, and packaging materials, thereby negatively affecting our financial
results.
The loss of one or more of our largest customers could negatively impact our business.
Our business could suffer significant setbacks in sales and operating income if our
customers’ plans and/or markets change significantly or if we lost one or more of our largest
customers, including, for example, Surrey Huku. Our retail customers typically do not enter
into written contracts, and if they do sign contracts, they generally are limited in scope and
duration. There can be no assurance that significant customers will continue to purchase our
products in the same mix or quantities or on the same terms as in the past. The loss of a
significant customer or a material reduction in sales to, or adverse change to trade terms
with, a significant customer could materially and adversely affect our product sales, financial
condition and results of operations.
The prices we receive for our products may fluctuate due to competition from other food
producers and processors.
The food industry in Zimbabwe is intensely competitive. We face competition from other
food producers and processors that have various product ranges and geographic reach.
Some of the factors on which we compete include: pricing, product safety and quality, brand
identification,
innovation, breadth and depth of product offerings, availability of our products and
competing products, customer service, and credit terms. If we reduce prices but we cannot
increase sales volumes to offset the price changes, then our financial condition and results of
operations will suffer. Alternatively, if we do not reduce our prices and our competitors seek
advantage through pricing or promotional changes, our revenues and market share would
be adversely
affected.
 Extreme factors or forces beyond our control could negatively impact our business.
Our ability to make, move and sell products is critical to our success. Natural disasters, fire,
theft, pandemic or extreme weather, including droughts, floods, excessive cold or heat,
hurricanes or other storms, could impair the health or growth of broilers or interfere with
our operations due to power outages, fuel shortages, damage to our production and
processing facilities or disruption of transportation channels, among other things. Any of
these factors could have an adverse effect on our financial results.
Theft & Vandalism
There is a risk that our poultry farm may be subject to theft and vandalism. This could have
an adverse effect on our financial results, as we might end up losing our birds.

3.5 Production Chart

The summary of the production process is as follows:
PERIOD ACTIVITIES

2 weeks before arrival Clean ,spray with disinfection, set feeders, set burners, heap coal
Day 1 Give vitamin solution/sugar, water, stress free pack, weigh, count,
regulate temperature and de-beak, give feeds.
7 Vaccinate, introduce feeders, regulate temperature weigh, turn the
bedding
14 Increases space, decrease temperature, rise water drinker according
to bird’s age and size. Weigh
21 Rise water drinkers, regulate temperature, Increases space according
to bird’s age and size. Vaccinate, weigh
28 Raise the troughs for birds height
42 Weigh, Slaughter, dress and start selling
49 Clean the fowl run, disinfect, remove the bedding dry it for livestock
feeds or to the compost.