Layer Farm Pre-Feasibility Study
Various types of farm equipment are needed for feeding, drinking and handling the
birds. List of the required farm equipment is given in Table 6-1:
Table 6-1 Farm Equipment
Unit Cost Total Cost
Brooders 10 450 4,500
Drum Heaters 1 1,200 1,200
Drinkers (Small) 50 60 3,000
Drinkers (Large) 100 180 18,000
Feeders 200 125 25,000
Nests 50 26 1,300
Shifting Box 5 1,800 9,000
Total 416 62,000
Recommended Mode for Acquiring Land It is recommended that the proposed project should be started in a rented shed. This option will help us to save on the capital cost required for constructing new sheds. Normally, these sheds are located along the roadsides around the cities and rural areas. Generally, the rate prevailing in the market is around Rs 1 per square feet.
Space Requirement Required Area (Sq.ft)
Shed Space @ 2 Sq.ft/bird 10,000
Store Room 64
Rooms for Guard and Workers 144
Total Project Space Requirement 10,718
Rental Cost/Sq.ft (Rs) 1
Total Building Rental Cost (Rs) per month 10,718
Project Costs Rs.
Machinery & equipment 62,000
Total Fixed Costs 62,000
Raw material inventory 159,614
Prepaid building rent 128,616
Total Working Capital 288,230
Total Project Cost 350,230
Table 8-2: Financial Plan
Initial Financing Rs. in actual
Debt 50% 175,115
Equity 50% 175,115
Table 8-3: Project Returns
NPV (Rs) 570,986
Payback Period (years) 6.84
Maximum Capacity Utilization 100%
Number of Birds per Flock 5,000
Number of Flocks per Year 1
Total Mortality Rate 5%
Mortality Rate (Rearing Period) 3%
Mortality Rate (Laying Period) 2%
Total Mortality Loss (Birds) 250
Total number of Birds Laying Eggs 4,750
Length of Rearing Period (Months) 4.5
Length of Laying Period (Months) 12
Lag time between the Flock(Weeks) 2
Economy Related Assumptions
Electricity growth rate 10%
Wage growth rate 5%
Administrative overhead (%of Sales) 0.5%
Raw material price growth rate 5%
DOC Cost (Day Old Chicks) 20
Weight of Feed Bag(Kg) 50
Feed Cost/Bag 518
Rearing Period Feed Consumption/Bird/Month(Kg) 1.33
Rearing Period Cost of Feed/Bird/Month 13.78
Laying Period Feed Consumption/Bird/Month(Kg) 2.7
Laying Period Cost of Feed/Bird/Month 27.97
Vaccination Cost per Bird 3
Spray Cost per Flock 1,250
Litter Cost per Flock 2,500
Electricity Expense per Month 2,000
Pre-paid building Rent (Months) 12
Number. of eggs laid/Bird/Month (Dozens) 2
Availability of Eggs in Year 1 (Months) 7.5
Production Capacity in Year 1 (Dozens) 71,250
Eggs selling price (per Dozen) 21
Birds selling price 20
Litter selling price (per Flock) 1,500
Feed Bags selling price (in Rs) 5
Sales price growth rate 10%
Table 12-5: Cashflow Assumptions
Raw Material Inventory (Days) 40
Accounts Receivable Cycle(Days) 30
Table 12-6: Financial Assumptions
Project life (Years) 10
Interest rate on long-term debt 16%
Interest rate on short term debt 16%
Debt tenure (Years) 5
Debt payments per year 1
Discount rate (weighted Avg. cost of capital for NPV) 20%
Minimum Cash Balance 10,000
PESHAWAR (APP) – Provincial Minister for Livestock, Dairy Development and Cooperatives, Hidayatullah Khan on Sunday said the government accords high priority to livestock and poultry sectors in Khyber Pakthunkhwa and focus is being made for establishment of model poultry forms. “The establishment of these centres would help to promote livestock and poultry sectors in rural areas and will increase income of masses and farmers,” he said while addressing a public gathering on occasion of giving Category D status to Rural Health Centre Munda in Lower Dir.
Speaking on the occasion, the Minister said the government accords high priority to rebuilding and reconstruction of terrorism and flood hit areas of Khyber Pakthunkhwa and ANP have achieved maximum targets announced in its election manifesto.
“The targets of renaming the province as Khyber Pakthunkhwa, provincial autonomy, establishment of peace in areas that was challenged by militants and terrorists and reforms in FCR have been achieved and Darul Qaza was established with cost of Rs.350million on request of people of Malakand Division despite west’s opposition.” He said Darul Qaza was the old age demand of people of Swat and Malakand Division and the incumbent government has fulfilled the pledge to provide inexpensive and speedy justice to litigants.
To address problems of masses, the Livestock Minister said centre for promotion of livestock sector has been established in Lower Dir and a separate feeder and grid station at Jandol have been approved by Khyber Pakthunkhwa government to address low voltage problems and load shedding. He said the facility would be inaugurated this week for which all arrangements have been completed. As many as Rs.90million have been spent on provision of basic health facilities at Smar Bagh to mitigate suffering of ailing humanity, he remarked.
The Minister announced Rs.75million for provision of modern equipments and machinery for Munda Hospital and Rs.110million for construction of link roads at Meega area to provide better communication facilities to masses. Work on provision of gas project cost Rs.800 million to Lower Dir was underway that would also be extended to Tehsil Smarbagh, he elaborated.
The government is starting a number of livestock projects for breeding, conserving and protecting native breeds in current fiscal year, he added. In addition to establishment of modern Livestock and Poultry Research Centre at Jaba in Mansehra district costing Rs230 million, he said anti-bird flu vaccine would also be prepared in the centre, which would save valuable foreign exchange for the country.
The government has restarted mobile veterinary dispensaries project where a quality team will visit each union council after every 15 days to examine animals and provide free treatment. The government will establish 200 veterinary dispensaries besides 2,400 mobile veterinary camps in the next fiscal. He said it is a three-year project that would be completed at a cost of Rs80 million.
Dairy colonies are being launched in Peshawar, Mardan and Dera Ismail Khan districts where plots would be given to livestock owners to expand their business.
Work on dairy colony in DI Khan has been started and will be established on 200 acres.
Work on Peshawar and Mardan dairy colonies, of 500 kanal each, will soon start, he added.
Another project costing Rs150 million will be launched for reconstruction of damaged veterinary hospitals and dispensaries, he said.
Another project costing Rs250 million would also be launched for capacity building of women associated with livestock and dairy sector, he added. Milk and meat project would also be started at a cost of Rs300 million. The Minister said that 71 projects for agriculture and livestock were planned in the budget and 70 percent amount for ongoing and 30 for new projects in the budget were earmarked by government to bring white revolution and fulfill meat requirements of people.