1.

Product Description: In general poultry refers to all domestic birds of fowls; but in this
project profile it refers only to chicken. Chicken are most popular, widely raised and
consumed birds in Ethiopia. Hence the major purpose of poultry production in the
country is for food as meat and egg. In commercial poultry production system broiler
meat is marketed in the form of live birds, whole dressed, portions such as leg quarter,
thighs, whole breast, drumsticks, etc, which may be polybagged or tray packed depending
on the requirements of the customers. Two kinds of eggs are also supplied to the market;
i.e. table eggs for direct consumption and hatchery eggs for further rearing.

1. Rationale: Poultry production practice in the Amhara Region is a traditional type; just as
a backyard business in which producer's rear small number of domestic birds. Production
is, basically for home consumption, with a small percentage and seasonal marketable
surplus. According to the livestock sample survey of 2005/06, the Amhara Region had
9.40 million poultry population which accounts for 29.2% of the national flock. The
marketable surplus is only 20% of the region flock whereas mortality rate is over 60%
and the balance is consumed at home.

Urban population in the region is estimate 2,195,000 and relating this figure with the
marketable surplus of poultry in the Region, poultry meat consumption level is less than
one bird per person per year. This is extremely low by any standard. The low level of
marketable surplus is constrained by a host of factors. Traditional producers raised their
own stocks which are low p-productive, they take 12 months to gain 1 kg weight whereas
improved breeds gain 1 kg body weight in 2 months time. The local breeds give 20-30
eggs per layer per year and the improved breeds gain 200-280 eggs per layer per year. In
addition to this in the traditional production system mortality rate is very high due to high
incidence of diseases and predator as there is no provision of housing. Birds are properly
fed, left to scavenge for food, no provision of veterinary services. There is no
differentiation between layer and broiler breeds. As a result poultry production is low. On
 the other hand urban population is increasing at the rate of 4.25% per year. With the
current unsatisfied demand population increase will create addition pressure on poultry
meat and egg supply. Hence it is timely to encourage investment in the poultries.

1. Market Potential: Base on statistical Abstract of 2005, total regional population is

estimated at 19.12 million of which 12% resides in urban centers. The urban population
of the region is growing at more than 4% per year. On the other hand poultry population
in the regions is estimate at 9.40 million of which only 20% marketable which indicates a
consumption level of less than one bird per person per year.

As indicated in table 1 below, demand for Birds and eggs increased from 8.9 million to
12.9 million and from 35.6 million to 51.8 million from the year 2001 to 2010,
respectively.

Table 1

Demand Projection for Birds and Eggs in Amhara Region

family(000) Birds Eggs Total

Year Urban Rural Urban Rural Urban Rural Birds Eggs
2000 482 3544 1446 7088 5784 28352 8534 34136
2001 502 3695 1507 7389 6030 29557 8897 35587
2002 524 3852 1572 7703 6286 30813 9275 37099
2003 546 4015 1638 8031 6553 32123 9669 38676
2004 569 4186 1708 8372 6832 33488 10080 40320
2005 594 4364 1781 8728 7122 34911 10508 42033
2006 619 4549 1856 9099 7425 36395 10955 43820
2007 645 4743 1935 9485 7740 37942 11420 45682
2008 672 4944 2017 9889 8069 39554 11906 47623
2009 701 5154 2103 10309 8412 41235 12412 49647
2010 731 5373 2192 10747 8770 42988 12939 51757

Producers in the region raise local birds which are low productive and will never catch up
with the growing demand of urban population. The urban population growth rate will also
create additional demand which will justify the development of commercial poultry
production at Bahir Dar and other major zonal capital cities.

1. Source of Raw Materials:- Day-old chicks for both layers and broilers' breeds have to
be imported from well recognized breeding stock sources. In commercial poultry
production feed is the most important variable cost component accounting fort 75-80
percent of th4e production cost. The basic components of feed are maize, Soya bean and
oil cakes which can easily be produced and supplied to the poultry industries within the
region.
2. Production Process and Technology: Poultry houses are designed for growing pullet
(egg layers), broilers (birds of meat) parent stock (birds for breeding) and each cage
house is equipped with automatic feeders, drinkers, controlled heating and light system
where temperature and humidity are controlled. Day-old chicks are vaccinated and the
same day delivered to their respective cage house by an environmentally controlled
delivery van. Chicks are carefully brooded and fed until they reach their respective
production stages layers will start egg-laying in 20 weeks time. Eggs will be collected,
stacked in trays and stored for sale. Broilers will gain marketable body weight in 45 days
time ready for sale live or dressed.

1. Investment Cost Estimate:- Commercial poultry production systems are characterized

by large scale production using specialized and mechanized facilities and less labor
intensive. Therefore, investment in land acquisition (about 10 ha), building and civil
works, plant and machinery, vehicle and transport equipment purchase will require in the
range of Birr 20-30 million depending on the size and capacity of the farm plus and initial
working capital of 5-6 million Birr should be established.
1. Benefits: Poultry meat and eggs are relatively cheep but healthy animal protein sources.
Because productivity of poultry birds per unit of is very high, its contribution to the food
self sufficiency effort will be great. The industry is highly profitable as long as it secures
cheap supply of row materials. It will reward the investor in the form of profit and
generate income for the regional Government in terms of income tax and VAT. It will
also generate employment opportunity in the region.

1. Location: Appropriate sizes of poultry farm could be established in Bahir Dare,

Gondare, Deber Markos, Woldia, Combolcha and Dessie.