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Strategic Business Plan

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UNICAF UNIVERSITY (ZM).

STRATEGIC MANAGEMENT.
UU-MBA-712-ZM.

STUDENT NAME: Kibuuka Andrew.

STUDENT NO: R1901D7337163.

TUTOR’S NAME: Dr. K. Sankar Ganesh.

Page 1 of 17
KBC POULTRY FARM’S STRATEGIC
BUSINESS PLAN.

2021 – 2021

July 2021.

Page 2 of 17
 TABLE OF CONTENTS.

1.0 STRATEGIC RATIONALE ......................................................................................... 4

1.1 Overview ..................................................................................................................... 4
1.2 Strategic Grit................................................................................................................ 4
2.0 OVERVIEW .................................................................................................................. 5
2.1 Background.................................................................................................................. 5
2.2 Vision and Mission ...................................................................................................... 5
2.3 Core Values ................................................................................................................. 5
2.4 Governance .................................................................................................................. 6
3.0 MACRO AND MICRO ENVIRONMENTAL ANALYSIS ......................................... 6
3.1 Macro-Environmental analysis ..................................................................................... 6
3.1.1 Political Environment and social environment ....................................................... 7
3.1.2 Economic conditions ............................................................................................. 7
3.1.3 Technology............................................................................................................ 8
3.1.4 Environmental factors............................................................................................ 8
3.1.5 Legal and Regulatory Condition ............................................................................ 9
3.2 SWOT Analysis ........................................................................................................... 9
3.2.1 Strengths ............................................................................................................... 9
3.2.2 Weaknesses ......................................................................................................... 10
3.2.3 Opportunities ....................................................................................................... 10
3.2.4 Threats ................................................................................................................ 10
4.0 STRATEGIC ANALYSIS AND CHOICE ................................................................. 11
4.1 Long Term Objectives................................................................................................ 11
4.2 Short term Objectives................................................................................................. 11
5.0 INVESTMENT AND PROFITABILITY STATEMENT .......................................... 12
5.1 Capital Injection......................................................................................................... 12
5.2 Breakeven analysis..................................................................................................... 12
5.3 Payback period........................................................................................................... 12
6.0 SOCIAL AND ECONOMIC BENEFITS AND JUSTIFICATION ........................... 12
7.0 THE MANAGEMENT TEAM ................................................................................... 13
8.0 CONCLUSION ............................................................................................................ 14
Appendixes ........................................................................................................................ 15
References ................................................................................ Error! Bookmark not defined.

Page 3 of 17
1.0 STRATEGIC RATIONALE.

1.1 Overview.

The increasing demand for poultry and poultry products in Uganda has increased the pressure on
the need to rear more exotic breeds of poultry due to their high productivity. In Uganda, the poultry
industry is highly dominated by small and medium-scale operators and this has created a gap
between demand and supply.

According to the Uganda Bureau of Statistics (UBOS), Uganda’s production of both poultry and
poultry products like eggs is still very low compared to its current population estimated to be over
46 million people as seen from the caption below.

The purpose of this Strategic Business Plan is therefore to draw up a road map to guide KBC
Poultry Farm Limited to fill the gap in the poultry industry. The production and supply will mainly
target the Uganda market but when pertinent, it also envisages a broader geographical area
covering the whole region.

According to Uganda Economic Policy Research Centre, Uganda has 21.3m people (57% of the
population) in the middle-income class with most of them living in the Central region as a result
of urbanization. It is also expected that the country will reach upper-middle-income status by 2040.
This creates a huge market potential which is being targeted by KBC international whose grand
strategy is to spread its footprint into Africa.

KBC Poultry Farm Limited will be a subsidiary of KBC International.

1.2 Strategic Purpose.

KBC International’s strategic purpose is to spread its investment overseas as a means of sustaining
its competitive advantage by becoming the leading supplier of poultry and poultry products in
Uganda and the region. There is no better way of achieving this than partnering with a local
entrepreneur who has been in the same business before. KBC Poultry Farm Limited is to be

Page 4 of 17
incorporated with a clear Vision, Mission, Strategic Purpose, Policies, and Procedures that will act
as a vehicle to drive KBC International’s grand strategy of widening its footprint in Africa.
The Farm has therefore dedicated time and developed a business plan to act as a guide in its quest
to achieve the set objectives both in the short and long term. The Farm will need an initial capital
outlay of $150,966 for its startup as below.
Item Estimated cost (UGX) Estimated cost (USD)
Additional Investiment Required 419,978,764 116,661
Fencing 50,400,000 14,000
Chicken House 26,000,000 7,222
Bore hole 20,000,000 5,556
Milling Machine 7,000,000 1,944
Purchase of Chicks/Layers 45,000,000 12,500
Feeding 10,000 Layers upto laying stage 161,578,764 44,883
Poultry Management System 20,000,000 5,556
Truck - Elf (3 tons) to deliver inputs & Outputs. 60,000,000 16,667
Pickup (Double Cabin) 30,000,000 8,333
Existing Investiment 123,500,000 34,306
Land (2 Acres) 70,000,000 19,444
Chicken House 20,000,000 5,556
Electricity 6,000,000 1,667
Solar Installation 10,000,000 2,778
Brooder Construction 7,000,000 1,944
Staff Quarter 10,500,000 2,917
Total Investiment 543,478,764 150,966

2.0 OVERVIEW.
2.1 Background.
KBC Poultry Farm Limited is a Company to be incorporated in Uganda and to be a wholly-owned
subsidiary of KBC International incorporated in the Netherlands.

2.2 Vision and Mission.

KBC Poultry Farm’s vision is to become the leading supplier of affordable and healthier poultry
and poultry products in the region.

Our Mission is to produce affordable and healthier Poultry and Poultry Products for the people in
the region by using locally available resources like organic feeds and local labor while taking
advantage of new global technological innovations.

2.3 Core Values.

Among the core values of our farm include;
Page 5 of 17
Safety First - Because life is precious, everything else is secondary.
Relationship - We build long-lasting relationships based on trust and mutual benefit.
Excellence - Only the best. We give every project our very best effort and time.
Speed - Do it yesterday. We act with an extreme sense of urgency.
Integrity - The truth always. We believe that integrity is key to long-term success.
Can-Do Attitude - We approach every challenge with optimism. We believe that the greater the
challenge, the sweeter the victory.
Team Work - We win together.

2.4 Governance.
The farm will be established in Uganda and will function as an exclusively owned subsidiary of
KBC International in the Netherlands.
KBC Poultry Farm will therefore be administered under Uganda’s Companies Act, Cap 110. It
will also be registered by the Uganda Registration Services Bureau (URSB) and Uganda Revenue
Authority (URA) for Tax purposes. It will have a strict policy to adhere to applicable international
standards such as the ISOs.

The Farm will be overseen by a Board of Directors that will drive the strategy of the company.
The Board will frame corporate policies and procedures and hand them down to a senior executive
management team that will ensure that the company's mission and vision are broken down into
medium to long term objectives and subsequently pass them to the operational and line managers
to translate the objectives into operational goals that will be attainable in the short term and ensure
that individual key performance indicators are aligned with the strategic objectives and ultimately
the vision of the company.
The Farm will implement an emergent strategy formulation that permits people within an
organization to exercise their creativity and innovation as an organization strives to continuously
create value for its customers.

3.0 Macro and Micro environmental analysis.

Under this section, we scrutinize the environment in which KBC Poultry farm will operate. This
scrutiny should be a continuous process that should be performed from time to time to ensure that
this business plan remains a living document that can be followed by the employees at any time.
PESTEL and SWOT analyses are performed to oversee the factors that can influence or affect the
business both in the Macro and Microenvironment (Creately, 2012a)
3.1 Macro-Environmental analysis - PESTEL.

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A PESTLE analysis empowers the user to get an overview of the macro environment. The macro-
environment is the environment that exists outside the Company. The factors in this environment
are in most cases not controlled by the internal mechanisms put in place by the Company (Oxford
Learning Lab, 2017). PESTLE exclusively gives an overview of external factors and aids to
recognize opportunities and threats that can propel or retard a Company. The PESTEL factors in
KBC Farm’s external environment are as explained below;
3.1.1 Political Environment and social environment.
Political Environment. Uganda has generally remained peaceful since 1986 and according to the
Uganda Bureau of Statistics, Uganda’s population is 43.1 million people.
https://www.ubos.org/explore-statistics/20/.
Of this,11.5 million people (27%) are in urban areas and mainly in the central region.
https://data.worldbank.org/indicator/SP.URB.TOTL?locations=UG.
Government Legislations and support. The Income Tax (Amendment) Act, 2019 exempted
agricultural supplies from withholding tax (WHT). The 2018 amendment reduced the WHT rate
on payments for agricultural supplies from 6% to 1%. This amendment now eliminates the 1%
WHT. Therefore, government and listed entities do not have to withhold payments they make for
agricultural supplies. https://www.ey.com/en_gl/tax-alerts/uganda-issues-2019---2020-tax-
amendment-acts.
Social Environment. There is an increasing consumer sensitivity to chemical intoxication in food.
This means that there is an upward demand for chicken meat and eggs grown organically. This
means that producers like KBC Poultry Farm should gain growth from increasing interest in their
products. In addition, although many consumers in Uganda are still unaware of the benefits of
using organic foods, there is a growing trend of preference for organically and locally grown
produce especially in the livestock sector where consumers are assured of getting fresh products
from a local farm. https://orgprints.org/id/eprint/30908/.
3.1.2 Economic conditions.
According to the World Bank, Uganda’s real Gross Domestic Product (GDP) grew at 2.9% in
FY20 compared to 6.8% recorded in FY19. This was mainly due to the effects of the COVID-19
pandemic. This growth trend is expected to continue at a similar level in FY21 as economic
activities continue to stall due to a domestic lockdown and border closures for all except essential
shipments. https://www.worldbank.org/en/country/uganda/overview.
Equally, as it is in most of the developing economies, access to finance is still a major challenge
affecting business in Uganda. Many farmers want loans to boost their agricultural projects but
most of the commercial banks are expensive in terms of interest rate and collateral requirement.
https://www.researchgate.net/publication/337829501_A_Review_of_the_Political_Economy_of

Page 7 of 17
_Agriculture_in_Uganda_Women_Property_Rights_and_Other_Challenges/link/5dedb00545851
59aa46e83f2/download.

Uganda’s interest rates and other selected indicators are as below.

Selected Indicators
FY FY FY FY FY FY FY
14/15 15/16 16/17 17/18 18/19 19/20 20/21
Core Inflation, (%) 3.2 6.7 5.1 2.7 3.8 3.1 3.5
Interest Rates(% ) 21.6 24.0 22.6 20.3 19.9 19.3
Exchange Rate (Sh/US$) 3,301.8 3,404.9 3,590.9 3,879.5 3,694.8 3,730.1 3,556.7

https://www.bou.or.ug/bou/bouwebsite/bouwebsitecontent/statistics/MacroeconomicIndicat
ors/Disseminated-Indicators-file_Web-version.xlsx.

According to Uganda Economic Policy Research Centre, Uganda has 21.3m people (57% of the
population) in the middle-income class with most of them living in the Central region as a result
of urbanization. It is also expected that the country will reach upper-middle-income status by 2040.
This creates a huge market potential for investment, especially in the food industry.
https://eprcug.org/eprc-in-the-news/8-3m-ugandans-are-middle-class/.

Commercial Poultry farming is relatively a new niche in Uganda and it still needs innovation.
Logically, new profitable business ventures get a lot of consideration from new participants who
tend to pour in at once and dilute the margins. This is currently happening in the poultry industry
in Uganda. The best way of surviving and sustaining business growth in such an environment is
by paying attention to customers’ choices. It takes a lot of investment in research and
development and, initially with experimentation, but will sustain the business’ competitive
advantage in the long run.

3.3.3 Technology.

Internet Penetration. According to Datareportal, in their report “Digital 2021- Uganda”, there
are 12.16 million internet users in Uganda, and penetration stood at 26.2% in January 2021.
Although this is considered low, it presents a large opportunity to reach out to as many potential
clients as possible. https://datareportal.com/reports/digital-2021-uganda?rq=uganda.

e-Commerce. The online marketplace has become a very profitable sales channel in Uganda.
Establishing an online shop is not only cheaper and easier but also speeds up the process of
widening the footprint in terms of sales and customer reach.

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3.1.3 Environmental factors.
Uganda’s climate favors agriculture and agriculture remains a major driving force in Uganda’s
economy.
https://www.researchgate.net/publication/337829501_A_Review_of_the_Political_Econo
my_of_Agriculture_in_Uganda.
Inputs like maize, fish, sunflower, and other feed ingredients can locally be sourced due to the
good climate that allows the same to be grown or reared locally. These account for over 80% of
the poultry business expenses. However, the recent outbreak of poultry diseases like Avian
influenza and other outbreaks occur in organic flocks due to environmental contamination.
https://www.health.go.ug/cause/fact-sheet-on-avian-influenza-bird-flu/.
3.1.4 Legal and Regulatory Condition
The government of Uganda has gone the extra mile to draft strategic plans for the agricultural
sector through an extensive agricultural policy. For many decades, raising agricultural output has
always been one of Uganda's development agendas despite the slow progress. At the agriculture
level, the Ministry of Agriculture, Animal Industry, and Fisheries indicate that these frameworks
aim at modernizing agricultural practices in the country to enhance the level of output. Other
several semi-autonomous agencies under the same ministry like the National Agricultural
Advisory Services (NAADS), work hand in hand to ensure the success of agriculture in Uganda.
The intention of these policies include; (a) to create more job opportunities through adding value
on the output to attract both domestic and international trade, (b) to increase household income
through farming, (c) to ensure household food security for all citizens, (d) to ensure sustainable
use of available agricultural resources,
(e) to promote national and international trade of agricultural products, (f), to develop human
resources that can ensure agricultural development, and lastly, (f) to promote specialization in
various enterprises that aims at adding value to products through agro-zoning.

3.1 SWOT Analysis

The SWOT analysis examines the Strengths, Weaknesses, Opportunities, and Threats of a business
project. Strengths and weaknesses refer to internal factors that might influence the business
sustainability while the opportunities and threats consider the external factors. The PESTEL
identified factors are used as input for the SWOT analyses, which does not distinguish explicitly
between these theme-based factors
3.1.1 Strength.
In analyzing KBC Poultry Farm’s internal environment, a SWOT analysis has highlighted the
following Strengths that can be harnessed to sustain its competitive advantage:

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 KBC Poultry Farm is backed by a financially sound international holding company with a
good financial reputation.
KBC Poultry Farm confidently boasts of partnering with one of the most experienced
partners (KBC International) with a long history in Poultry farming.
The ability to grow production without some major capital investments since our local
partner had already invested in the same (see the investment schedule in the overview).
KBC Poultry Farm has one of the latest commercial poultry farming management systems
and tools that will help to produce Poultry and Poultry products in commercial quantities
with less stress.
3.1.2 Weakness.
Our weakness may be that we are a new commercial poultry farm Company in Uganda, and it
might take us a while to attract big industrial customers. We are aware of this, and we forecast that
over time, we will overcome this weakness and turn it into a major benefit for the company.
3.1.3 Opportunities.
The opportunities available to us as a standard commercial poultry farm and egg company include:
The growing population especially into the middle class and the peaceful political
environment present a larger market opportunity for KBC’s products.
The government's support through conducive tax regimes like the exemption of WHT on
payment for agricultural products provides an opportunity for improved cashflows which
makes it easier to run the business.
Commercial Poultry farming is relatively a new niche in Uganda and it still has huge
investment potential with a good return on investment. Uganda’s climate favors agriculture
and agriculture remains a major driving force in Uganda’s economy.
Internet penetration is on the rise in Uganda and this creates a huge opportunity to reach
out to a wider market with minimal resources through e-commerce and online marketing.
3.1.4 Threats.
Some of the threats we are likely to face when we start our business of poultry and egg production
include;
The current COVID 19 pandemic has created a global economic downturn which is
negatively impacting household spending. There is likely to be a slow uptake of our
products until the world finds a way of dealing with the pandemic.
Logically, new profitable business ventures get a lot of consideration from new participants
who tend to pour in at once and dilute the margins. This is already happening in the poultry
sector in Uganda. KBC should create an environment that encourages innovation and
invention among its staff. This is the only sure way to sustain the competitive advantage
over its competitors.
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 Changes in government regulations and policies in terms of tax, especially after realizing
that the sector has grown in terms of profitability and contribution to the national economy
can affect the business’ return on investment negatively. KBC Poultry Farm, through its
competent and experienced staff, must be able to do proper tax planning to mitigate and or
take advantage of any policy changes.
The recent increase in the outbreak of poultry diseases like Avian influenza and other
diseases due to environmental contamination possess a high risk in organic flocks. KBC
should use its superior management system to detect, control or deter such risks. There
should also be continued innovation, training, and research about the weather, new
outbreaks, and their control. This will help KBC to stay ahead of its competitors.

4.0 Strategic Analysis and Choice

The key driver of this project is to profitably feed the growing population in Uganda on organic
and healthier poultry products and use that as our competitive advantage over our competitors to
acquire a bigger market share in Uganda and use it as the launch pad to spread into the region.

In all, the institution will employ a grand strategy to attain long-term strategic objectives with a
focus on stability to enable the company to establish itself on the market by leveraging on the
advantage of lack of competitors (Gaddis, 2018). This will enable attainment of satisfactory
financial condition and performance as well as learn the market before expanding into the region
(Hill, 2013).

4.1 Long Term Objectives

According to Quinn, 2010, it is significant that the long-term objectives of a business are clear to
set the future course of the company. The long-term objectives will direct the growth projections
and steadiness of the company.

Therefore, the long-term strategic objectives of KBC Poultry Farm in the next 3 to 5 years are;
being the Market leader in the supply of Poultry and Poultry Products in Uganda and being the
employer of choice especially for the youth and women directly and indirectly; to be
technologically superior through continued research and innovation in both chicken breeds and
work methods and to be a leader in corporate social responsibility.

4.2 Short term Objectives

In the short term, we aim at market penetration through advertising both in print and visual/audio
media, to break even and become profitable within the first year by reaching 90% optimal
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production. The business will adopt Porter's generic strategy to attain competitive advantage (Dess
and Davis, 2017). KBC will pursue the low-cost strategy and differentiated product strategy to
achieve its advantage. Poultry inputs will be organic and sourced locally at minimal costs to present
an opportunity to maximize profits. The Strategy for product differentiation will be to introduce
organically nurtured poultry and Poultry products like eggs with a higher healthier value
considered to be superior to the available products on the market.

5.0 Investment and Profitability Statement

5.1 Capital Injection
The funding of $150,000 will be utilized as below;
Item Estimated cost (UGX) Estimated cost (USD)
Additional Investiment Required 419,978,764 116,661
Fencing 50,400,000 14,000
Chicken House 26,000,000 7,222
Bore hole 20,000,000 5,556
Milling Machine 7,000,000 1,944
Purchase of Chicks/Layers 45,000,000 12,500
Feeding 10,000 Layers upto laying stage 161,578,764 44,883
Poultry Management System 20,000,000 5,556
Truck - Elf (3 tons) to deliver inputs & Outputs. 60,000,000 16,667
Pickup (Double Cabin) 30,000,000 8,333
Existing Investiment 123,500,000 34,306
Land (2 Acres) 70,000,000 19,444
Chicken House 20,000,000 5,556
Electricity 6,000,000 1,667
Solar Installation 10,000,000 2,778
Brooder Construction 7,000,000 1,944
Staff Quarter 10,500,000 2,917
Total Investiment 543,478,764 150,966

5.2 Breakeven analysis

The financial projection for 18 months shows that KBC will start earning revenue in the fifth
month when the birds start laying and will break even in the Seventh month. Please see the detail
in the appendix below.

5.3 Payback period

The capital injection and profitability statement are used in projecting the payback period. The
initial capital injection of $150,000 will be paid back in 3 years. and SADC regions.

6.0 Social and Economic Benefits and Justification

The proposed strategic plan possesses a wide range of social benefits that complement the financial
feasibility. Among these include;

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 Mobilizing the local community to cultivate poultry inputs like maize for poultry feeds.
The farm will have the capacity to consume an average of 25 tons of maize per month and
this is an assured market for the community.
The community will also be involved in the distribution of farm outputs like eggs, chicken,
and Fertilizers from the chicken waste.
The Project will, directly and indirectly, provide purchasing power to those involved with
the farm. This will assist in uplifting the community household incomes.

7.0 The Management Team.

Lindsey Morgan
Morgan is the Managing Director of KBC Poultry Farm Ltd.
He has over 15 years of C-suite experience in Agriculture and Banking Businesses.
Before KBC Poultry Farm, Morgan served as the Head of Operation at KBC International Inc,
Netherlands. Prior to this role, he was the Head of Retail Banking at Access Bank Netherlands.
Morgan holds an MBA from the Bradford School of Management and a Degree in Marketing from
the school of Marketing in Netherlands.
Her focus is to ensure that the business strategy is implemented as envisioned by the Board of
Directors.
Andrew Kibuuka
Andrew is the Chief Financial Officer of KBC Poultry Farm Ltd.
Prior to moving to KBC, Andrew was the Finance Manager for Knight Frank Rwanda
based in Kigali.
He is an experienced Finance professional with over 10 years across Trading, Telecom,
and agricultural operations.
Andrew holds is a Chartered Accountant and holds Bachelor’s degree from Makerere University.
He is currently pursuing an MBA in Oil and Gas Management with Unicaf University Zambia.
His focus at KBC is to develop policies and procedures to improve performance and productivity.
Joon Nakalembe
Joon is the Legal and Human Resources Advisor.
She holds a bachelor’s of Laws and a degree in Business Administration with
Finance and accounting.
Prior to moving to KBC, she was a legal and Human Resource adviser at UgaChick Poultry farm
Ltd
Emmans Pirwoth
Emmans is the Operations Manager.

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Prior to moving to KBC, Emmans was a senior Logistics and Operations Officer at Ministry of
Agriculture in Uganda.
He has over 10 years’ experience in poultry farming operations.

8.0 Conclusion.
This strategic business plan presents a clear business case that investing in a poultry farm is a
profitable business venture that will in the long run not only increase the shareholder’s wealth but
also contribute to the economy and wellbeing of the community. The strategies employed will
guarantee that the company remains sustainable and is a good corporate social citizen. The plan
shows that there are adequate strategies and theories to offer a wide array of best practices to adopt
and formulate vision, mission, and objectives that can be monitored, reviewed, controlled, and re-
engineered in response to internal or external forces of the company for long term sustenance.

Page 14 of 17
 APPENDIX
1. Key Financial Assumptions.
KEY FINANCIAL ASSUMPTIONS - POULTRY.
1
The casflows are based on raising 10,000 chicks - Layers.
2
Each Chick is estimated to cost UGX4,800.
3
Each chick is estimated to be brooded at UGX500 for 1 month.
4
The farm will employ 20 permanet staffs at an average salary of UGX150,000 per month.
5
Each bird is estimated to consume an average of 3kgs per month for 18 months.
6
Unless a water well is done, its estimated that buying water will on average cost UGX2.6m per month.
7
The feeds have been priced at UGX1,400 per kilogram.
8
Haversting of Eggs is expected to start in the 5th month.
9
Haversting is expected to grow from 6% in the 1st month of laying to 50% in the next month and peak at to 85% before reducing
to 70% towards the 18th month of laying
10 The average selling price for a tray of eggs has been estimated UGX9,000.
11 The birds will be sold off after 18 months of laying
12 The project will generate a net cash inflow of UGX114m over a course of 22 months

2. Cashflow/Profit and Loss Statement.

KBC POULTRY FARM PROJECT CASH FLOWS/PROFIT STATEMENT.
ITEM Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 End of Period
Income
Eggs per Chick 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30
Number of Chicks 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604
Production rate 6% 50% 85% 85% 85% 85% 85% 85% 85% 85% 80% 80% 75% 75% 75% 70% 70% 70%
Eggs products 17,287 144,060 244,902 244,902 244,902 244,902 244,902 244,902 244,902 244,902 230,496 230,496 216,090 216,090 216,090 201,684 201,684 201,684
Trays products 576 4,802 8,163 8,163 8,163 8,163 8,163 8,163 8,163 8,163 7,683 7,683 7,203 7,203 7,203 6,723 6,723 6,723
Price per tray 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Income From Eggs 5,762,400 48,020,000 81,634,000 81,634,000 81,634,000 81,634,000 81,634,000 81,634,000 81,634,000 81,634,000 76,832,000 76,832,000 72,030,000 72,030,000 72,030,000 67,228,000 67,228,000 67,228,000 1,278,292,400
Disposal of offlayers - - - - - - - - - - - - - - - - - 96,040,000 96,040,000
Total Income 5,762,400 48,020,000 81,634,000 81,634,000 81,634,000 81,634,000 81,634,000 81,634,000 81,634,000 81,634,000 76,832,000 76,832,000 72,030,000 72,030,000 72,030,000 67,228,000 67,228,000 163,268,000 1,374,332,400

Expenditure 56 54 60 64
Cost for the chicks -
Glucose 50,000 50,000
New castle 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 2,200,000
Gumboro 250,000 500,000 750,000 1,500,000
Fowl pox 84,000 84,000
Fowl Typhoid 1,000,000 1,000,000
De-worming 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 5,040,000
Vit amins 1,944,000 1,944,000 3,888,000
Antibiotics 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 3,150,000
Feeds 3,509,052 3,507,648 3,609,370 3,789,838 14,206,797 27,510,966 27,510,966 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 49,519,738 974,999,919
No of Birds 10,000 9,800 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604 9,604
Consumption 0.035 0.036 0.037 0.039 1.033 2.00 2.00 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60 3.60
Price for feeds 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432 1,432
-
Salaries 8,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000
71,000,000 3,000,000
Water -
Purchase of empty trays 64,827 540,225 918,383 918,383 918,383 918,383 918,383 918,383 918,383 918,383 864,360 864,360 810,338 810,338 810,338 756,315 756,315 756,315 14,380,790
Expenditure 3,909,052 3,507,648 4,109,370 11,789,838 20,390,797 32,084,966 32,944,966 53,074,565 53,549,963 53,928,120 53,928,120 53,928,120 53,928,120 53,928,120 53,928,120 53,928,120 53,928,120 53,874,098 53,874,098 53,820,075 53,820,075 53,820,075 53,766,053 53,766,053 53,766,053 1,077,292,708

Net Proceeds (3,909,052) (3,507,648) (4,109,370) (11,789,838) (20,390,797) (32,084,966) (32,944,966) (47,312,165) (5,529,963) 27,705,880 27,705,880 27,705,880 27,705,880 27,705,880 27,705,880 27,705,880 27,705,880 22,957,902 22,957,902 18,209,925 18,209,925 18,209,925 13,461,947 13,461,947 13,461,947 200,999,692

Investiment 161,578,764 19%

price number
Cost of Chicks 4,800 10,000 48,000,000 0.19

Total Investiment 209,578,764

ROI 19%

Pay Back Period 3

Page 15 of 17
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