BUSINESS PLAN

JUST-IN POULTRY

1. Executive Summary

Just-in Poultry is a poultry firm which specializes in high quality improved kienyeji chicks,
feterlised eggs and kienyeji chicken for meat. It targets small and medium scale famers in
providing quality chicks, training for better productivity as well as connecting them to the
market. With rapidly increasing population in Kenya and high consumption rate of chicken,
demand is expected to rise steadily in the next twenty years, therefore, the firm aims to work
closely with the famers to support sustainable poultry farming to fill inequilibrity in demand and
supply of poultry products. The venture aims to raise Ksh. 851200 for start up and generate a
revenue of 2.3 millions in the first two years in operation, this will be achieved by leveraging on
the power of advanced technology to ensure efficiency and effectiveness in production,
competitive pricing and proper management of the supply chain from production to
consumption.

2. Business Description

Big Steve Poultry is a business venture sponsored by Stephen okoth okumu which deals in
chicken and chicken products right from production of eggs, chicks to meat. Poultry industry in
Kenya is one of the fast growing and profitable industries in Kenya due to growing population.
Demand for chicken is projected to rise by 289% and 211% for meat and eggs respectively by
2050 according to Food and Agriculture Organisation of the United Nations (FAO). Fast
growing population of Which 92% of Kenyans consuming chicken means supply does not meet
demand therefore creating a business niche.

Big Steve Poultry will be operating as a private limited liability company, located in Utawala,
Machakos county. The business venture is in Poultry industry and aims to produce high quality
fertilized eggs, high quality chicks and chicken for meat. The business targets small and medium
scale famers as well as final consumers. The business aims to work closely with farmers through
training, supplying quality chicks and feterlised eggs at an affordable price, as well as linking
them with the final consumer. The business plans to enter the market through eggs and chicks
and diversify as the demand grows.

3. Marketing Plan

We are targeting small and medium scale farmers, hatcheries, hotels, retailers as well as end
consumers through retail outlets. We intend to make entry to the market by offering high quality
chicks and fertilised eggs, training as well as after sale service such as consultancy. We will start
with Nairobi and bordering counties.
Big Steve poultry intends to achieve a market share of 25 % within three years of operation.
Poultry industry in Kenya is competitive with big players such as Kenchic, Quality Meat
Packers, Kim's poultry and East Meat Supplies and therefore quality and pricing, advertisement,
Distribution method,will play a pivotal role market entry

With the growing power of social media, the business venture plans to take full advantage to
advertise since it's relatively cheap as well as mainstream media such as newspapers and internet
stories. Proper branding of our products can also act as a good channel to market them.

4. Organisation and Management Plan

The organisation will have the following structure;

5. Operation/ Production Plan

Production plan is a vital aspect of running a successful business. The following are two primary
aspects of production plan;

5.1 Required production equipments

The most used equipments in poultry farming are; Incubator, refrigerator, cold room,feeders,
drinkers, gloves, dust coat, gumboots, brooding bulbs, waste bins, shovel, crates, Spade,
weighing scale, brooding thermometer and Jembe. Materials required are; Day old chicks for
parent birds, packaging materials for slaughtered chicken and day old chicks, egg trays, saw dust,
vaccines, chick start powder, feeds and water.

5.2 Production technique

Production technique in this business refers to the process and stages involved from producing
day old chicks to the point of laying eggs and slaughter. The brooder is prepared in advance
before the chicks are brought, they are placed in the brooder for two weeks under perfect
condition after which they are allowed to feed freely in or out of the poultry house, vaccines are
administered according to the schedule as a means of mitigating disease. Semi intensive system
of production will be applied, this is a combination of deep litter system and free range system
and the purpose is to reduce disease risks and allow birds to exhibit their natural behaviour this
improves the quality of eggs produced.

Some of the roosters are slaughtered after maturity ensuring that the ratio of the remaining
roosters to hens are 1:12. The parent birds are fed high quality feeds so as to produce high
quality feterlised eggs. The eggs are then placed into the incubator for 21 days as per orders from
customers and should be picked one day after hatching. The customer has to pay a commitment
fee of 10 % while placing order, this is to encourage them to pick up their chicks after hatching.
At this stage the organisation is not liable to the sex of the chicks.

We will also keep improved kienyeji chicken for sale after one month and the remaining chicks,
especially cocks for slaughter.The slaughtered chicken will be sold in our retail outlets and to
other retailers. Value addition will be considered.

6. Financial Plan

6.1 Required startup capital estimate

Financial planning is the process of estimating the capital requirements. It includes the financial
projection for the first one year of operation , pre operating and operating expenses , star up
capital, funding source, proposed selling price and financial assumptions. The table below shows
the required start up capital.

ITEMS AMOUNT

Pre-operating expenses 75000

Operating stock 145002

Total operating expenses 851200

Total startup capital estimated 851200

6.2 Source of funds

The business will be financed through personal savings, loans, ploughed back profit and friends.
The table below shows the estimated amount of funds.

Source of funds Amount Percentage

Personal savings 395002

Loans 100000

Friends 100000

Ploughed back profit 256198

6.3 Pre operating activities

This comprise the cost or renting, building of poultry house, business registration, preparation of
brooder and purchase of equipments. The following table shows the estimated figures.

Pre-operating activity Amount

Rent 75000

Poultry house building 12160

Business registration 24000

Purchase of equipments 13950

Brooder preparation 0

6.4 Operating expenses

Operating expenses refers to the amount required to keep the business running. In this case it's is
estimated for a period of one year. Here , the focus is on the general cost including cost of feed,
rent, electricity, salary, transport, depreciation, vaccines and Medication.

Operating expenses projection for a period of one year

Duratio Nove Dece Janu Febr Ma Apr Ma Jun Jul Aug Octo Nove
n in mber mber ary uary rch il y e y ust ber mber
months

Feed 22200 15500 396 3844 192 328 328 328 328 328 3286 32860
80 0 20 60 60 60 60 60 0

Vaccin 3000 2450 500 2600 100 500 500 500 500 500 500 500
es & 0 0
medicat
ion

Repair 13000
&
mainte
nance

Rent 25000 25000 250 2500 250 250 250 250 250 250 2500 25000
 00 0 00 00 00 00 00 00 0

Salary 10000 10000 100 1000 100 100 100 100 100 100 1000 10000
00 0 00 00 00 00 00 00 0

Transp 9000 9000 900 9000 900 900 900 900 900 900 9000 9000
ort 0 0 0 0 0 0 0

Electric 5000 5000 500 5000 500 500 500 500 500 500 5000 5000
ity 0 0 0 0 0 0 0

Waste 250 250 250 250 250 250 250 250 250 250 250 250

Ware
and tare

Misleni
ous

6.5 Opening stock

Item Quantity Unit price ( Ksh) Total cost( Ksh)

Improved kienyeji 300 110 33000

chicks( Kenbro)

Starter crumbs feed 6 3700 22200

Growers mash feed 51 3150 160650

Finisher pellets

Chick start 1 500 500

Wood shavings 2 200 400

6.6 Proposed price list

Product Description Cost price Selling price

Improved kienyeji Feterlised eggs 21.21 25

eggs
Improved kienyeji One day old 53 100
chicks

Improved kienyeji One month old 179 270

chicks

Improved kienyeji Slaughtered 600 700

Broiler chicken Slaughtered

Chicken manure Chicken waste 0 200/ bag

Azzola Alternative chicken 0 1200

feed

6.7 Break-even analysis

Cost( ksh). 0. 100. 200. 300. 400. 500

Sales ( ksh)
Break-even point is a point where the business is neither making profit nor loss. Since our
market entry strategy is to introduce two products i.e eggs and chicks, we therefore use the two
products to calculate the Break-even point. The following are the assumptions made;

i) Prices remain the same use

ii) Hatch rate is 100%

iii) There is no mortality

iv) Cost of production remain the same.

From the graph, the business will Break-even when sales of ksh. 395303 hase been achieved.
The following days has been used to compute Break-even point;

a) Total fixed cost= 303000

b) Estimated sales; eggs=1450000, chicks=897600, total estimated sales= 2347600

c) Total variable cost= 548200

NOTE; The Break-even point has been calculated using sales estimates. Wher we less total
variable cost from total sales, then divide the outcome by total sales to find contribution. Fixed
cost is divided by contribution to find Break-even point. From the data we find that the venture
will reach it's Break-even point at Ksh. 395303 of sales in a year.

Product (eggs) Percentage Product (chicks) Percentage Total

1450000 100 897600 100 2347600

274000 18.9 274000 30 548200

1175900 77.1 623600 70 1799500

Conclusion

From my experience in poultry industry in the last five years, it is one of the most profitable in
Kenya. It is estimated that 92% of Kenyans consume chicken thus demand will keep on growing
as the population grows. Supply of poultry was disrupted during covid-19 pandemic and many
farmers quit since they couldn't sustain their businesses due to low demand at the time, since
then the demand for poultry products has been on rise, therefore with proper planning,
innovation,effectiveness and efficiency in production, the venture can generate revenue of more
than two millions yearly in it's early stages.