VEN-FARMS & AGRO-ALLIED COMPANY LIMITED

BUSINESS PLAN FOR:

EXPANSION OF GPOULTRY FARM

Chairperson name: EMMANUEL K. NGUTIBI.

Contact Number: 07089822586

Company Address: Behind TADP, Nukkai, Jalingo Taraba State.

MARCH, 2023
 PROJECT PROFILE.

1. Farm VEN FARMS AND AGRO-ALLIED COMPANY LTD

2. Ownership EMMANUEL NGUTIBI

3. Projects Location BEHIND TADP, NUKKAI, JALINGO.

4. SIZE 2.2 HECTARE

5. Project

Poultry Farming

2000 layers

Egg production

6. Initial Stock

2000 Layers

7. System design Battery cage

8. Source of Feed Formulations of feed in the industry

9. Source of Water Bore Holes and Water Tanks

10. Market Outlet Entire Taraba state, Yola, Benue and Abuja

11. Source of Funds Bank of Industry

12. Repayment Terms 5 years Repayment schedules.

THE INDUSTRY.

INTRODUCTION.

This report is written for the establishment of poultry farm at Nukkai in Jalingo LGA of Taraba

State. It is glaring fact that the small-scale poultry farmers produce the bulk of chicken and

chicken products consumed in continental Africa in general and Nigeria in particular. A

sustainable number of smallscale poultry farmers still rear the traditional chickens that are

produced at a low cost, marginally fed since they are left to scavenge, simply house and their

management are mostly family based with women and children providing the needed labour.

In this case it could be said that the profit is high because of the low input, but certainly it

cannot be described as business venture therefore when a serious consideration for chicken

production as a business concern on a suitable and profitable basis is contemplated, the

improved strains that have adapted to our environment should be consider the Ven Farms &

Agro-Allied Company LTD in exploring the possibilities to embarked on the modern way of

poultry production system.

The Products.

The product will be broilers production and eggs production for the consumption of the general

public. The product can also be in form of manure production for crops.

However, in as much as there are economic benefits that could be generated from

poultry production. It still remains a hit or miss affairs for most people. Therefore, a potential

poultry farmer should first conduct an unbiased self-assessment as to his or her suitability for

chicken production business.

VISION STATEMENT

Our vision is to be the preferable and number leading poultry farmer for customers in Taraba,

Adamawa, Benue and the whole of Nigeria as well to meet their demand.

MISSION STATEMENT

Our mission is to ensure we process our poultry products both meat and eggs of the highest

quality using the best machines, tools and resources. We also intend to ensure that our poultry

products does not only meet the needs of our house hold clients but become a profitable

business for our partners and distributors.

BUSINESS STRUCTURE

Knowing how our vision is to be the most preferable and number leading poultry farmer for

our customers, we have decided to ensure that we draft a business structure that will allow us

not only achieve all our intended goals and objectives but also enable us build a solid business

foundation as well.

One of our top priorities is to ensure that we hire the best professional hands that have the

required necessary experience, are dedicated and that will ensure that the business runs

smoothly.

Those we intend to employ to handle various tasks with assigned roles and responsibilities for

the growth of Ven Farms & Agro-Allied Ventures include:

• Managing Director

• Admin Manager

• Marketing and Sales Executives

• Purchasing Manager

• Accountant/Cashier

• attendant Manager

• Front Desk Office

• Security Guard

• Cleaner

• Van Driver
SWOT ANALYSIS

As part of our drive for excellence when it comes to running a standard poultry

production company, we were able to engage some of the finest business consultants in
Taraba state to look through our business concept and together we were able to access
ourselves to be sure we have what it takes to run a standard poultry farm.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities
and also the threats that we are likely going to be exposed to in Nigeria. Here is what we got
from the

SWOT Analysis conducted for Ven Farms & Agro-Allied Limited

Company;

Strength:

Our strength lies in the fact that we have large number of poultry eggs that can meet the
needs of a wide range of customers. We have a well – designed store and equipment that have
positioned us to meet the demand of products even if the demand tripled over night or if we
have a massive order to meet.

Another factor that counts to our advantage is the background of our Chief Executive Office;
he has a robust experience in the industry and also a pretty good academic qualification to
match the experience acquired.

Weakness:

The fact that we are setting up a large poultry production company in a city with other

established plants might likely pose a challenge for us in breaking into the already saturated

market. In essence our chosen location might be our weakness. But nevertheless, we have
plans to launch out with a big bang.
 Opportunities:

The opportunities available to us are unlimited. Nigerians consume all forms of poultry
products on a daily basis and all what we are going to do to push our products to them is
already perfected. Plus, the fact that growing immigrant populations have introduced a vast
assortment of poultry products to Nigeria.

Threat:

The threat that is likely going to confront us is the fact that we are competing with already

established poultry farms companies, and also operators import products that compete against

producers in the Nigerian market, and new companies are likely to enter the market to
capitalize on robust demand for poultry.

Of course, they will compete with us in winning over the available market. Another threat
that we are likely going to face, are unfavourable government policies and of course
economic downturn.
THE MARKET.

We surveyed the poultry market in Nigeria and found that an estimate of 140 million people

are in dear need for poultry products. As a matter of fact, our study shows that at present there

are major ready market within Taraba, Adamawa, Gombe and even Abuja that chicken can be

sold faster and profitable. Arable farmers will also need the chicken farmers will also need the

chicken manure for their crops.

Currently, prices of healthy feed chicken egg in Nigeria ranges from N80 to N100 per egg likes

wise healthy feed chicken ranges from N2,500 to 6,000 only depending on the size of the

chicken.

Our study of the market coupled with interview with marketers and consumers indicate

that chicken meat demands has not been met at all in Nigeria. In fact, our market survey

indicates that the market for this products is at an increase level every day.

Since we are an existing market owner we will expand to be able to capture the whole market

of Taraba, Adamawa and Gombe state for the beginning.

MARKETING.

The marketing of live chickens and eggs creates a lot of job and income opportunity for many

people.

MARKETING OF EGGS.

This is a business concern that is fast gaining prominence for both retailers and

wholesalers. Eggs should be collected regularly and stored in a cool and wellventilated store.

If they are dirty, they should be cleaned with dry towels and if they are to be washed use warm

water and don’t store washed eggs.

Marketing of eggs can be taken as full time employment especially in urban area. The business

can be use to supplement other sources of income; however, while presenting eggs to the

consuming public, emphasis should be on egg size, uniformity of colour etc. to avoid egg

spoilage, eggs can be preserved as liquid egg, dry egg, frozen egg etc.

MARKETING OF LIVE BOIRDS.

In most developing tropical countries like Nigeria, where processing and storage facilities are

still limited, consumers preference is more towards the purchase of live birds. Religious

injunctions also play a role in this regard, especially in Muslim communities which recommend

certain Islamic recitation before slaughtering any animals.

Client will plan broiler production in such a way that they mature towards a festive period.

During such period, demand is high which can translate to a higher profit.

SALES OF MANURES.

Manure from birds on deep litter are drier because part of the moisture content have been

absorbed by the litter (wood Shavs) while that from birds in battery cage can be collected, dried

and sold as a fertilizer for use in increasing crop yield especially now that inorganic fertilizers

are very scarce and expensive.

 PRODUCTION PLAN.

Project Location.

2.23 hectares of farm land has been acquired and is been in to proper use located at Nukkai,

Jalingo Local Government Area of Taraba state for this Project. The chosen site is motorable

and is just few meters away from he main road. The poultry farm is located near a ready

market and it will be accessible for good patronage. There is an adequate supply of good

quality water and electricity. Adequate drainage and good air movement will be provided in

the site

POULTRY HOUSE.

The farm already has an adequate poultry houses to provide adequate housing for the birds,

such as to enhance easy laying, prevention from sunlight, heat, cold, turbulent wind and dust.

It is well ventilated, dry, clean and spacious.

The temperature and humidity of the farm houses is well maintained in such a way that the

relative humidity of the poultry houses is around 60-70%. Low humidity will lead to

dehydration of the chickens, while enhance at multiplication of pathogenic organisms in the

wood’s shaves such as coccidiosis in the litter.

Adequate heat should be provided at between 3- and 5-weeks age during the day and for another

one week during the night. Excessively hot environment causes poor feathering and slow

growth. The project has ensured good house management practice such as housing birds of the

same age group and sources together.

There are many types of poultry hoses but we are using open sided poultry house.

The poultry housing is well ventilated to ensure a steady supply of oxygen and removal of

excess moisture and carbon dioxide. Adequate ventilation also helps in eliminating ammonia
build-up in the poultry house, which if allowed to accumulate in the pen can cause eye irritation

and also increase respiratory disease rate, weight loss and general discomfort to birds and

poultry attendants.

PRODUCTS AND SERVICES

Ven Farms & Agro-Allied Venture is a business that has been licensed by the National

Agency for Food Drug Administration, cooperate Affairs commission, Nigerian import and

export commission and also federal inland revenue services to enhance the production of

poultry and eggs that will be used in households as well as in commercial places.

Some of the products and services we intend to indulge in as a business includes;

• Broilers.

• Eggs.

• Consultancy Services

• Training and Coaching

FINANCIAL PLAN

Pricing strategy

Setting the right price for a product is very important as this can either draw more customers

to ones business or make them go over to competition instead.

eggs are price base on the quality and price of the raw materials and also depending on the

quantity that is bought by the customer. We intend to have different pricing options for our

bulk buyers and normal buyers.

Payment Options

At Ven Farms & Agro-Allied dVentures, we intend to ensure that we have a payment policy

that caters to all our different customers regardless of the category. Our payment options are

in line with financial regulations of the Taraba State government and that of Nigeria as a

whole.

The payment options we intend to make available to our teeming customers include:

• Payment via point of Sale (POS) machine

• Payment via Cheque

• Payment via Cash

• Payment via Bank Transfer

• Payment via Bank Draft

STARTUP COSTS

Total sum of estimated amount of ₦22,000,000 (₦22 million) will be needed to start – up our

Ven Farms & Agro-Allied Venture business (including the salary of our employees for the

first three months).

Sources of Capital

Total start-up cost will be generated from Bank of Industry, so as to help establish the factory

and also the other part will be gotten by Ven Farms & Agro-Allied ventures families and as

well as obtaining from friends and relatives.

SALES FORECAST

Haven carried out a feasibility and viability study and a market survey, we have been able to

make a sales forecast for our Ven Farms & Agro-Allied Business for the next few years.

For the first three years, the following is the estimate of what we stand to realized:

• First Fiscal Year: ₦35,500,000

• Second Fiscal Year: ₦39,000,000

• Third Fiscal Year: ₦56,000,000

N.B: The above sales projection is totally in line with what is obtainable in the industry.

The projections are also based on the fact that all factors that were considered during the

analysis for this poultry and eggs production business plan remain constant – such as the

economy, lack of strong substitutes, and the arrival of no major competitors.

EQUIPMENT AND PRICE.

The heart of this Modern poultry and eggs production Plant is the use of modern equipment

in the industry. The full lists of the equipment are:

S/N EQUIPMENT UNIT PRICE TOTAL PICE

1 Generator 600,000 600,000

2 Feeders 200,000 200,000

3 Drinkers 150,000 150,000

4 Water tanks 600,000 600,000

5 Bore-hole 1,600,000 1,600,000

6 Rain boots 50,000 50,000

7 Eggs trays 80,000 80,000

8 Wheel barrow 60,000 60,000

9 Shovels 24,000 24,000

10 First aid box 45,000 45,000

11 Charcoal stoves 5,200 5,200

12 Lab coats 20,00 20,000

14 Hand gloves 5,000 5,000

15. Battery cage 85,000 2,210,000

16 Pipes 98,000 98,000

18 Day old chicks 820 822,000

19 Point of lay 3,200 6,400,000

The total cost of equipment for the business is fiveteen Million four hundred thousand Naira.

(#15,400,000).
PRODUCTION CAPACITY

On average the farm will be producing about one thousand eight hundred (1,800) pieces of

eggs in a day.

This means that within one month, we will be able to get about 54,000 pieces of eggs

equivalent to 1,800 creates.

TERMS AND CONDITIONS OF PURCHASE

80 percent of the price will be paid at commissioning, 10 percent after delivering, and before

installation and 10 percent after installation and test run.

Civil works for the mounting of the machines and electrical connections will be the

responsibility of the client.

Delivery Period: Delivery of the machines shall be 8 weeks from the payment of the 80

percent and the clearing of the cheque.

Transportation: The transportation will be born by the client. We envisage that one 911 truck

or 20 feet container can carry one plant.

Installation: Our technicians will install and test run the plant.

Warranties: 6 months for any production problem excluding changeable parts affected by

aging, misuse and accidents.

Technical support: Supply of spare parts at short notice, maintenance, quality control to

ensure standard and consultancy services when needed.

Validity: This quotation is valid for 90 days from the date of submission after which the price

may change.

PROJECT RISK ANALYSIS.

The risk associated to poultry project is as follows:

a. Bad temperature

b. Poor sanitary environment and

c. Poor feeding habit

This risk can be mitigated by taking insurance cover from Nigerian agriculture Insurance

corporation. (NAIC).

We have also employ the services of vet officer to oversee the project.

The risk of loss through diseases can be control through medication.

 VEN POULTRY FARMS

SUMMARY OF FINANCIAL PLAN AND TOTAL PROJECT COST.

ITEM FUND APPLICATION TOTAL

CONTROL

LOAN EXISTING PROPOSED

1. Investment Expenses.

Land acquisition 1,200,000 - 1,200,000

Building & signature 700,000 - 700,000

Construction & poultry house 2,000,000 - 2,000,000

Machinery & Equipment 11,000,000 - - 11,000,000

Well/water reservoir 400,000 - 400,000

Sub-Total 11,000,000 4,300,000 - 15,500,000

2. Operating Expenses. -

Purchase of birds 5,400,000 - - 5,400,000

Materials and inputs 3,000,000 - - 3,000,000

Repair and maintenance 120,000 - 120,000

Management 350,000 - 350,000

Overheads 1,200,000 - 1,200,000

Insurance 150,000

Appraisal fee 30,000

Solicitors & others 180,000

Bank charges/consultancy fee 100,000

Sub-Total 8,550,000 2,080,000 0 10,630,000

GRAND-TOTAL 18,550,000 6,380,000 0 26,130,000

 REVENUE PROJECTION.

Purchased Birds Less 125 Matured chickens Selling price Revenue realized

Culled layers 2000 240 1760 3,500 6,160,000

Eggs - 5000 crates 2,000 10,000,000

Sales of manure - 1,200 bags 1,400 1,680.000

Total 17,840,000

➢ Mortality rate 2%

➢ Eggs production 58 crates daily.

 CASH FLOW PROJECTION.

ITEM CYCLE 1 CYCLE 2 CYCLE 3 CYCLE 4 CYCLE 5 CYCLE 6

1. Inflow.

Rev. from sales of eggs 3,480,000 3,480,000 3,480,000 3,480,000 3,480,000 3,480,000

Culled layers 6,160,000 6,160,000 6,160,000 6,160,000 6,160,000 6,160,000

Less cost of chicks mash - - - - - -

Total 9,640,000 9,640,000 9,640,000 9,640,000 9,640,000 9,640,000

2. Fund provided

Loan funds 16,000,000 -

Applicant fund 4,500,000 -

Re-investment 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

Total 20,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

Total cash flow 20,500,000 25,000,000 29,500,000 34,000,000 38,500,000 43,000,000

3. Outflow Capital Cost

Building & structure

Machinery & equipment 4,500,000 -

Pick up van 3,000,000 -

Operating Expenses

Purchase of 2000 birds 5,400,000

Feeds 3,500,000

Medications 2,600,000

Repairs/Maintenance

Management /labour 560,000 560,000 - 560,000 560,000

Bill 500,000 100,000 240,000 240,000 240,000 -

Overheads. - 350,000 350,000 350,000 -

Appraisal fee 100,000 100,000 200,000 200,000 200,000 -

Solicitor’s fee 20,000 20,000 80,000 80,000 80,000 -

Consultancy/Bank charges 130,000 - - - - -

Insurance 150,000 150,000 150,000 150,000 150,000 -

Sub-Total 20,460,000 370,000 2,300,000 230,000 1,580,000 560,000

4. Debt Service

Principal Repayment - 3,764,705.88 3,764,705.88 3,764,705.88 3,764,705.88 3,764,705.88

interest 282,350 282,350 282,350 282,350 282,350 282,350

Sub-total 282,350 4,047,055.88 4,047,055.88 4,047,055.88 4,047,055.88 4,047,055.88

Total Out Flow 8,253,000 5,620,000 6,171,500 3,850,250 4,050,000 1,850,000

Revenue realized is re-invested within the project cycle.

 PROJECTED PROFIT AND LOSS

Items Year 1 Year 2 Year 3

1. Revenue

Revenue from sales of eggs 8,152,350 8,985,600 9,250,630

Culled layers 3,520,000 3,520,000 3,520,000

Less cos of chicks mash 1,000,000 1,000,000 1,000,000

Gross Profit 12,572,000 13,505,600 13,770,630

2. Expenses

Management & labour 1,500,000 560,000 560,000

Feeds 3,500,000 940,000 940,000

Medication 980,000 450,000 450,000

Overheads 400,000 200,000 200,000

Appraised fee 100,000 - -

Solicitors fee 20,000 - -

Consultancy/ bank charges 130,000 130,000 130,000

Insurance 150,000 320,000 320,000

bills 30,000 70,000 70,000

Total expenses 6,810,000 2,670,000 2,670,000

Net profit before tax 5,762,000 10,835,600 10,835,600

Less 7% Tax 403,340 758,492 758,492

Net Profit After Tax 5,358,660 10,077,108 10,077,108

CONCLUSION.

Based on the preceding proposed analysis, if given the chance, this business project

appears to be feasible. The annual rate of return is quite high, up to 51% and 62% respectively.

With the feasibility of capital at the rate of 80% will execute the project effectively and the

project will pay itself with efficient management.