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At the er! outset, /e cone! our thans to the od, the A"might! our *ro+ound
gratitude +or $est $o/"ing on us to *re*are this re*ort success+u""!. hen /e /ou"d "ie
to cone! our cordia" thans to our res*ectie course teacher Md. Mourtuza Ahamed,
Lecturer in Management, )e*artment o+ Business Administration +or assign us such t!*e
re*ort as a *art o+ our course reuirement.
-e are grate+u" to Md. ;amidur Mozumder, *ro*rietor o+ #e$a <ou"tr! =arm Boutogghata,hu"na. -e are a"so grate+u" o+ others em*"o!ees and sta++s o+ this *ou"tr! +arm /ho ta"us regarding the to*ic o+ this re*ort in s*ite i+ their $usiness and e2tended their he"*inghand $! *roiding crucia" in+ormation and suggestions /hich hae $een im*"emented tocom*"ete this re*ort.
No/ /e are in a *osition to e2*ress our thans to our senior $rothers and sisters and ourc"assmates /ho hae ins*ired us +or *re*aring this re*ort and hae discussed /ith usa$out the to*ic o+ this re*ort.
<rottasha <ou"tr! =arm, esta$"ished in Fanuar! 1, &007 has $een *"a!ing an im*ortantro"e in economic dee"o*ment at the "oca" and nationa" "ee" o+ the countr!. Besides itcreates o$s o**ortunities +or the unem*"o!ed and si""ed *eo*"es. his +arm is a
*artnershi* organization and it *er+orms a"" its actiities according the ru"es o+ thegoernment.
his re*ort consists o+ +our cha*ters, Cha*ter one: descri$es the $od! o+ the stud!,$acground, o$ecties, methodo"og! and "imitations o+ the stud!. Cha*ter t/o: discussa$out the actiities and strategies o+ arious +unctiona" de*artments. Cha*ter three:+inding and ana"!sis a$out arious *ro$"ems re"ated /ith the +arm. Cha*ter +our: @arious+unctiona" de*artment o+ B#B. And "ast"! cha*ter +our: contains o+ +inding andrecommendations that e2*"ored m! stud!.
<rottasha <ou"tr! =arm is no/ one o+ the "eading *ou"tr! +arm in Bang"adesh. his*ou"tr! +arm maintains sti++ ru"es and regu"ations in *roduction sectors andenironmenta" sectors. 8t *roduces 100G *ure chicens and eggs /hich are er!demanda$"e in marets. No/ the *o*u"arit! o+ this *ou"tr! +arm is a"so s*read in +oreign
marets and the *ou"tr! +arm e2*orts chicens and eggs in arious countries o+ Asia,>uro*e and U#A. his +arm a"so taes arious actiities to e2tend the $usiness areas and
in +uture /e cu"tiate *igeons and ducs $eside o+ chicens.
As we are producing chickens of di%erent types and eggs so both of them will be
our premium product$ &e can also go for ducks and pigeon in near future which
will expand our product line$ ut at present we want to continue focusing on the
chickens' their eggs only$
Contract into contracts with stores in Parjatan, Hotel
and restaurants
"or increasing product awareness among the various classes of people we will go
for contracts to take our chickens for making the foods$ This will increase
awareness about our chickens and eggs$
Pricing Strategy
In a recent survey we have found that the price of chicken meat fluctuates regularly. A new
farm should try to provide slightly lower price than the prevailing Market Price.
It can buy chicken from Kazi, rack or other suppliers at a price of 35-40 taka. And can
sell these to around 80-90 !K" K#. In future the farm can plan for e$port frozen chicken
out side the country, especially the Middle %ast where the demands for chicken meat is
very high.
Also in case of eggs the price of egg is increasing rapidly$ The current price of
chicken egg is 400-420 Tk / 100 eggs at the wholesale market$ As many aseggs can sell the cost of eggs sell while come down lower and pro(t would behigher as well$
After the (ndings we have come to the point that we will use three important
factors for reaching at the price at which we will sell our product$ They are#
ost: )n case of our pricing we will focus on the (xed and variable cost
mainly$ As more farms are in action we can take some hints from them$ Thepoints we will consider are#
!i"e# $ost: As the (xed cost will be the cost of land* building*
electricity which all the other (rms also has to give$ +o in
%a&iab'e $ost: )n case of variable cost the things we will focus on
are#,$ -ost of raw materials.$ -ost of labor/$ -ost of birds food
0$ -ost of birds maintenance1$ -ost of the machineries"or a (rm like us the (xed cost will always be higher$ +o* if a farm can sell
more at a lower price 2economic of scale3 it can make pro(t$
om(etition# &e tried to (gure out the following question answer through
our analysis and tried to draw an e%ective pricing strategy#
Published competitive price list and advertising
-ompetitive reaction to price moves in the past$ )nformation on competitors4 special campaigns$
-ompetitive product line comparison$
-ompetitors reported (nancial performance$
Assumption of the competitors4 pricing5marketing objectives$
As large number of (rms are out there to compete with us but not a single one of
them is up to our thinking standard$ +o if we can manage to plant all the stu%s
we can make such di%erence$
Deman## )n case of demand we will have to make the progress throughthe survey and market research$ Through our search we found that megacities like 6haka and -hittagong have higher demand for our products$ +owe can make a smooth chain of supply with the major places so theproduct doesn4t fall short and the price goes up$ )t will help to make ourimage up to our level as we don4t have to increase the price$
2.2 Distribution
6istribution is a key factor in marketing$ As this is the way to communicate
with the customers properly and in timely manner$ As we are concentrating
on the generic products* we will use di%erent distribution channels$
Transportation is a key factor of distribution$ As we want to be e7cient in our
distribution channels we will use the following vehicles#
8ehicle 9umber
Pick up /
:ickshaw van ,1
As we are focusing on major cities at (rst so we will start with the above
transportation systems$ &e have to support by distributing the product on
regular basis$ "or the eggs we will use the pick up to transport eggs and meatsfrom ;azipur to 6haka city$ +tarting from <arwan bazaar up to Agora and 9andan
we will cover them by using the rickshaw vans$
Channel structure strategy
Direct distribution: A+ we are having .==*=== chicken and the eggs would
be produced ,1====>,?==== per day so we have huge quantity to supply inthe market$ &e can use pickups to deliver the chickens in superstores andbazaars$ Also the vans and rickshaws can be use to send the eggs$ @ence*we will have economies of scale and bargaining power would be high and wewill have our own distribution channel to ensure the proper supply of eggsand meat at our buyer$ &e will also use retailers and wholesalers todistribute our product up to places where we will not be able to send ourproducts straightforward$
Bow degree of controlC @igher sales volume &ide customer recognition
@igh turnover Price discounting
2.3 Advertising/ product promotion:
As poultry firm we will go for supplying eggs and chickens to different shopping malls and
bazaars. &o we will focusing on basically providing outlets and maybe some time discount on
our product. !he prominent superstores of 'haka city are Agora, (andan, Meena azar. &o
besides supplying to the whole seller a farm should also try to build good relation with thesuperstores personals. )nce they will successful in doing this they can do direct marketing to
these superstores through sending salesmen to visit these superstores with occasional gifts.
Promotion-Expenditure Strategy: Promotion is a vital part in the total marketing
process. !he products that we are going to sell need very less advertising. !his is actually a
* selling. &o, the bottom line is to keep good relationship with the superstores and the
wholesalers. &o, to be successful farm promotion e$penditure should include the cost of
maintaining good relationship with the superstores and wholesalers.
+e will actually do the promotion for our products by using the followings
&o.i#ing te bue&s it #is$ount fa$i'ities: &e will provide discounts
on our products for di%erent circumstances$ "or example we will givediscounts on Dids$ Also for the bulk purchasing we will give discounts$ This willalso count for the shops as well as single customers$
oste& a#.e&tisements: &e will go for poster advertisements to post our
farm advertisements at production area and other nearby districts walls*buses* and other transportation vehicles like Escooters$ )t is possible to createvery attractive posters with colors* graphics etc which attracts a lot of people$
This can cover a wide range of people* which can be time saving and very
cost e%ective$ Also it will cover a wide segment of the people$ &e will also dopestering on the shopping centers$ +o that people can see them and give us atry$
a'en#a& an# &o$u&e a#.e&tisements: &e will publish calendars of our
(rms which will be distributed to bigger companies and potential markets of the local markets$ This will increase our identity to the mass segment of customers that we are targeting for$ Also we will make brochures which will begiven free to the customers who will come to the malls for buying products$
The brochures will have the following things# The names of the products that are currently o%ered and the
products that would be o%ered shortly
The kind of business practice they are in -ustomer responsiveness features
The extensive level of animal healthcare facilities
Potentials in a contractual agreement with the farm
Pre-printed inserts / Newspaper insertion: Pre- printed inserts will be distributed
inside the newspapers. !his is another medium through which a farm can communicate with
out audience effectively. )n the day before the inauguration of the farm it can use newspaper
insertions in daily newspapers .!he newspaper insertion will state their mission and vision
which will help to identify who we are and what we are willing to do in present and also in
near future.
2.4 ustomer service
Fay be this option has not yet been practice in this segment of the industry yet$
ut we will try to make full utilization of it and make our customers more reliable
on us$
&e have made some selective duties and responsibilities for our customer
service$ They are#
!he manager has to take the main responsibility of the consumer goods and service.
Managers have to build strong relationship with the consumers and they have to maintain
the consumers.
ustomer should always get better service from the company and they should be the most
preferred.
The manager is responsible for monitoring the overall day-to-day activities of the farm
employees. /e will also be responsible for maintaining an e$tensive level of relationship
and contacts with the buyers and other local agents. !he manager will look after the operations of the farm staffs every day and ensure a
smooth flow of works in poultry farm. <nowledge on -ustomer :elationship management issues in the agro>based
farms$ )t is very much important for the company because this will help in thelong run for the company with the old* traditional loyal consumers$ This isvery important part of the company$ -ompany should focus on this$
-ourteous mannerism to interact with the agents of the buyers$ Dxtensive
level of knowledge in farming of poultry* livestock and poultry$
-apability of handling consumer problems$ ecause there exist all the timevarious types of consumer problems$
They should focus on more about the time to time the acceptance of no leave
decision for the welfare of the (rm$
The managers would be provided with normal form of environment$ The workload
may increase above expectations during the heavy working days$ +ittingarrangement may be con(ned$ Dxtended periods of standing or sitting may be
there so that our customers can come and communicate with ourselves$
arket Overview
2." Potential customers
-ustomers are our king$ +tarting from Agora and PG+ up to individual customers*
we have to satisfy them all from every angel$ As we are planning to deliver our
product to all over the country so we need to maintain customer satisfaction to
get more of them$ +till we do a segmentation based on the product delivery$
asically we will have two segments of customers$ They are#
#egular customers# )n case of regular customer we have two more
sides$ They are#o The $holesaler! The wholesalers will take supply from us on
regular basis to distribute our products to the bigger towns as wellas newly potential places$
o #estaurants! 9ow a day there are plenty of restaurants* fast food
shop through out 6haka city and also in other places$ They need ourproduct simultaneously$ +H they are one of our regular customers$&ho will do the bulk purchases of our meats and eggs$
%rregular customers! Hutside those customers regular customers
we are also targeting some irregular customers who buys poultry goods for aparticular occasion$ Fost of the time they need a balk amount of products* so
we can give some discount for them$ As we are giving the markup for theregular wholesalers* we give a percentage of that markup for those irregularbalk amount buyers$
)n case of our poultry (rm we are considering on several facilities to improve the
production of chickens$ They are#
6an#: The land has to be suitable for the production of chickens$ )t must have
connection to all other facilities including good sources of workers and specially
water resource$
ui'#ing: &e are having 5 t&ee sto&e# buildings for our birds$ Fany poultry
farms are keeping chickens into non concrete building or rooms made with
fences$ This is certainly not good for the chickens as such rooms can not protectchickens from bad environment and also not hygienic as such these sorts of
rooms are not a good place for keeping chickens free from virus attack$ Hn the
other hand* Luctuation in temperature is also a great problem for the foster and
productivity of chicken$ +o the best option could have kept those chickens into
air conditioned rooms$ ut it is very expensive for us and would be di7cult to
sustain in market through competing with competitors by incurring such a huge
amount of utilities cost$ @owever* concrete building is good enough for the
current state of our country$
a&eouse: &e can use ware houses to stock the eggs and processed chickens
so that we can directly sell our product to bigger shops like Agora* PG+$ )f we can
make an agreement with them* we don4t need the help of supply chain in this
case$ &e can do stockpiling and sell our products to them$
&ofessiona' o&ke&s: &e will work with professional workers in our (rm with
good skills of production and we will introduce lessons sessions so that they can
learn about di%erent situations from practical examples$
7ti'ities: "or a poultry farm not too many utilities facilities are need$ +upply
ample amount of water and ensuring consisting supply of electricity is required
only$ To provide such facility it is a good choice to plant such farm in azitpurC
<ishorganj* where it will be easy to get water$ "or electricity supply we will
primarily take the connection from the rural electri(cation board and will have /
generators as back>up that would ensure consistent power supply$
.$ Property should be located within approximately .1 miles of complexfacilities>feed mill* processing plant* and hatchery$
/$ uildings 2poultry facilities3 must conform to industry standards and mayvary from company to company$ -onsult company representatives fordetails$
0$ @ouse equipment must conform to industry standards as to type* amount*installation* etc$* which will vary from company to company$
1$ "armstead* especially immediate area around the poultry buildings* mustbe prepared to accommodate feed trucks* catch and haul equipment andother vehicular tra7c$ )n addition* poultry houses should be built areasonable distance from neighbors to minimize problems$
?$ +itting of buildings should be discussed with proper authorities beforeconstruction* concerning state and local laws that may a%ect youroperation$
I$ +ize and number of houses must be settled with poultry company beforeconstruction$
J$ )f you are considering purchasing an existing poultry farm* prospectivecontracting company and5or company representatives should inspectpremises* with you* to determine suitability for growing birds$ Nou shoulddiscuss what equipment or building upgrades will need to be made beforebirds are placed$
Sstem maintenan$e
Any well>designed lighting system will deliver the light for which it was designed
only if the system is properly maintained$ A good maintenance program involves
prompt replacement of blackened or burned out lamps* washing lamps and
luminaries* periodically cleaning and repainting walls and ceilings on a scheduled
basis$
2.18 Production and manu(acturing rocess
The production process is not very critical in our company as it depends on the
nature mostly$ BikeC for poultry production we are going to fully depend on the
natural productivity of chickens to lay eggs$ The whole process is actually done
by manually with some trained workers with the direction of experts$
The project will procure dayOold chicks from <azi farm* rac farm or Aftab
farm$ These chickens are to be rearedOup to .= weeks to make them layingbirds$
practices* and above all lack of integration and understanding across the
poultry value chain$
$orking caital! Access to working capital by the smaller (rms in
particular was considered a major hurdle$ This has resulted in higher
dependence on the channel members for loan and thus being dictated by
them$ Hn the other hand the (nancial institutions (nd the smaller (rms as high
risk clients since they operate under uncertainties of disaster and at the same
time are di7cult to monitor$
Distribution ;anagement! The overall distribution management of
chicks* eggs* medicine* vaccine* and poultry was identi(ed as another cause of
high mortality and low pro(tability$
%nade7uate *alue chain! The transportation* packaging* and branding
was considered as inadequate across the value chain$ "or example inadequate
cool chain resulted in low e7cacy of drug and vaccine* inadequate packagingresulted in high mortality of chicks* Poor packaging of eggs causes damage as
well as bacterial infestation* inadequate branding results in low quality
monitoring* etc$
Human Resource anagement and Planning
2.!" #ey issues
@uman :esource and its functions is the vital area of any kind of organization
and the @uman :esources are the main resources who will utilize the other
resources to come up with best product or services with highest outcome$ 9ow a
day it has become the critical issue as because* from a market study it was found
that most of the farms su%ering in the industry were due to the bad
Therefore* @: functions should be maintain such a way so that* human resources
of our (rm will be the main assets$ Though the (rm does not require a concrete
@: department but the @: functions will be maintained$ +ome key issues of the
human resource that poultry farm should follow are#
The experience of the workforce especially in the poultry industry @iring the appropriate workforce who will run the business
@aving proper Kob analysis before hiring people so that wrong people are
not selected for a certain position The training of the workforce in the related (eld
The dedication* adaptability and Lexibility of the workers
The spontaneous decision making capability of the workers at least to a
small scale Dstablishing a proper compensation package for the employees and treat
everyone equally The integration of the working condition to the technological development
by the workers @aving a ethical management with ethical leadership
oth way communication would be there
The loyalty of the workforce
Faintain a standard* friendly and common ethical culture so that all
employees or every person in the (rm will have same interest with asingle goal and the behavior to the (rm of all will be same
The complete focus of the workers on the welfare of the company
These are going to be critical issues for the workforce of our poultry business$ )f
all these issues and maintained and handled properly then it will create welfareto the (rm and the main goal and objectives is the organization would be met
ultimately with a noticeable pro(t maximizing$
2.!$ Structure
Any organizations @: structure is highly inLuenced by the organization structure$
ased on the structure a certain culture is developed in the (rm and @: policies
are related with this structure$ That is why* the (rst component would be our
The @:F policies and practices creates a @:F style in any organization and this
style depends on the organization structure* it4s culture* strategic decision*
policies* @: functioned* organization culture$ @: strategy is always needed to be
aligned with the organization strategies as these strategies would be implied by
the human resources$ Htherwise* there would be ambiguity$ ased on all these*
strategic factors* organization culture* and projected @: practices we have cameup with a certain @: model that is our Proposed @: Fodel for the poultry (rm$
The organization structure of the (rm is Lat that support democratic @:F style
but the business itself and the national culture of angladesh is autocratic so*
the it won4t follow democracy in their @: practices and policies
-ontrol would be needed in the lower level of the job positions* on the other
hand* in the managerial level or middle level the employed would neededempowerment and they will participate in the decision making$
)n the lower level of the organogram the structure is tall and in top and
middle level it would be Lat and this type of mixed structure also a%ect the@:F practices and style of the poultry (rm$ That is why* the @:F style ismixed in our poultry business* where freedom will depend on job position*trust and control both will be available$
The manager is responsible for developing the marketing plan for the farm, building strong
relationships with the buyer and the superstores, introducing effective marketing strategy for
better selling of products.
ESSENTIAL DUTIES AND R ESPONSIBILITIES
The manager will be responsible for the business development of thecompany uilding strong relationship with the buyer especially with the big ones like
Agora* 9andan etc @e will (nd out new promotional ideas to boost the sales of the farm
COMPETENCIES, SKILLS AND K NOWLEDGE R EQUIREMENTS
• A or FA from any reputed niversity having at least . years real (eld
experience$
• -apacity and capability to promote and expand the company business
operations through preparation of a market analysis and feasibility study$
•
-apability of handling labor disputes• Dxtensive level of knowledge in farming of poultry* livestock and poultry$
• -ourteous mannerism to interact with the agents of the buyers$
S?6?A
,.*===>,1=== T<$ 29egotiable in case of extra>ordinary quali(cation3
?== T<$ Fedical Allowance
JOB POSITION: ACCOUNTANT
The accountant is responsible for monitoring the overall day-to-day transactions of the firm.
/e will be responsible for all type of financial transaction inside and outside the firm related
to the firm.
ESSENTIAL DUTIES AND R ESPONSIBILITIES The manager will look after the (nancial and non (nancial operations of
the farm sta%s every day and ensure a smooth Low of works in poultryfarm$
@e will prepare the income statement* balance sheet for the (rm after
every (scal year$ @e will take note of every day transactions taken place in the farm and
with the buyer outside the (rm$
COMPETENCIES, SKILLS AND K NOWLEDGE R EQUIREMENTS
• Fasters degree in Accounting with high command over the day to dayoperation in a traditional farm
• operations through preparation of a market analysis and feasibility study$
• -apability of handling labor disputes
• <nowledge on in farming of poultry* livestock and poultry and @uman
:esource management issues in the agro>based farms$
J*===>,=*=== T<$ 29egotiable in case of extra>ordinary quali(cation3
?== T<$ Fedical Allowance
JOB POSITION: SUPERVISOR
Through the initial periods of the farm* there will be two supervisors appointed inthe farm$ Hne of them will responsible for taking care of the poultry4s segment
which will supply chicken for meat and another person will look after chickens
using for producing eggs$ oth of the supervisors will be monitoring and
coordinating the activities of the site workers and also some other procurement
and logistics supervision is required$
ESSENTIAL DUTIES AND R ESPONSIBILITIES The supervisor will be responsible to report to the general manger directly
with everyday performance* events* and incidents$ The supervisor will partly responsible for the marketing and sales activities
of his department$ &ill monitor over the activities of the site workers and make sure no one is
evading their respective duties during the working hours$ The incumbent will count the number of the eggs laid by the hens in the
farm and monitor and instruct as necessary over the proper process andhandling during the egg plucking period$
&ill be responsible for reporting to the project coordinator about any sta%
related issues$-oming to the premises on time and dispense necessary activities to the
site workers$
@andle any work related grievances and disputes from the site workers
and the security guards$ )nteract with the buyers of the agents with an amicable mannerism$
COMPETENCIES, SKILLS AND K NOWLEDGE R EQUIREMENTS
• The incumbents will have to have an educational background of at least
up to the ,.th grade with />1 years works experience in the related (eld$
• Dxtensive knowledge of farming of poultry$
• The veteran experience will be a preference$
• -ourteous mannerism to interact with the agents of the buyers$
S><>#?
?*===>J*=== T<$ 29egotiable in case of extra>ordinary quali(cation3
/*===>0*=== T<$ 29egotiable in case of extra>ordinary quali(cation3
?== T<$ Fedical Allowance
2.!( Expectations
Se) ection * +ecruitment "or the welfare of the farm* it is very important to maintain an extensively
experienced and dedicated workforce and so the selection and recruitment policy
is very important here$
&e would emphasize mostly on experience of working in the related (elds$
&ould focus signi(cantly on the attitude and the behavior of our expected
employees$
Try to hire people who are currently working in di%erent farms$ They will be
provided an attractive incentive package for the future$
Providing a good working environment with safety to our employees$
Arranging an extensive training program for most of the employees in
other private or government farms or institutions and the performance inthese training programs will ensure their stay with the farm$
;ive enough liberty to the employees to exercise their skill or decision
making ability but for that* they must prove their ability (rst$
,raining and eve)opment
After selecting some candidates from the interview process* we will conduct a
training program in some established farms of the country or send them in some
government organizations* likeC Kubo nnayan +angastha$ The training program
will be funded by the farm and the candidates will also be paid a certain amount
for their participation in the training program with a given condition that* if hepasses the training program he must join the farm for minimum one year$
Training and development of new and existing employees through>
Hn>the>job training
H%>the>job training
efore arranging any training program a farm should ensure an e%ective
employee orientation program that will help the employees to familiar about the
farm facilities and activities$ And then should go for training activities as in
poultry industry (rms are facing tremendous threats of various chicken diseases
and requires well trained employees who have ideas regarding these diseasesand well informed about how to keep farm rooms hygienic$
&ection I.0 Proper 1ob analysis will be done so that all the duties, task andresponsibilities would be easily identified for each 1ob position. !hat will help my firm to
select and re2uite right person for the right position and create a proper compensation
package for each particular 1ob. )n the other hand, appropriate 1ob analysis help other criteria
like performance appraisal of the employees, training employees when needed, performance
development as oss these would be matched with and measured according to the 1ob
re2uirement after the proper 1ob analysis. )n the other hand, e$plicit and clear 1ob description
also helps the employees to recognize their responsibilities in the 1ob.
0otivation * ompensation
The motivating factors are required to be aligned with the jobs of the employees
in order to expedite their working process and productivity$ The employees will
be motivated to enhance their productivity according to the following processes#
ain Sa&ing# The managers and other workers will be provided with
gain sharing facilities in order to increase his performance$
onus O3e&ing: All the employees in the (rm will be provided with
compulsory bonuses during the Did festivals* which is double the salaryof the corresponding month before the Did festival$
@e#i$a' ?''oan$e: Dvery one with in the company will be provide Tk
?== medical Allowance for each month with their total salary$
?&&anging &o(e& T&aining &og&am: The supervisors* in this case*
will be responsible for training the site workers regarding various workrelated issues that are required for them to learn$
Per&ormance Appraisa)/ Emp)oyee 1eedac
The employee performance will be monitored and evaluations will be conducted
which will determine their incentive amounts$ "or instance* the site workers4
performances will be monitored on the basis of a standard goal setting approach$
@ere the site workers will be provided with a speci(c time limit within which to
)n case of price risk* broilers are perishable* if the farmer fails to sell at theproper time* they will face a great loss$ +o* the biological nature of broilers is the
cause of price instability$ )n the study period independent farmers received price
of broiler 1?>I= tk per kg* whereas contract farmer got 10 tk per kg$ A telling
factor was that contract farmers were not much a%ected by Luctuating prices
since the price agreed upon at contract signing was (xed* regardless of market
price changes$ As a result* grower payment depends upon production outcomes
but not price outcomes$ +o* growers do not bear price risk$ esides that most of
the independent respondents stated that sometimes they faced the problem of
selling broilers at a time which a%ects their selling price$
Production +is
Production risk mainly happens in broiler farming due to death loss of the birds$
Hutbreak of disease is causing a considerable economic loss and erosion of
con(dence in poultry farming$ Again for the lacking of the employee (re can
spread out in the factory$
2.2! n&oreseea)e ris
+ird lu ! +ird @u *irus a serious threat, desiteimro*ed resonse! )n angladesh bird Lu has spread to Poultry farm
which is a big king of threat$ RThe infection was detected at a farm in westernFagura district .== km 2,.1 miles3 west of the capital 6haka and (ve farmsat +avar in the 6haka district*R a spokesman at the poultry and livestock
ministry said$ The @19, bird Lu virus has been spreading in poultry Locks inangladesh despite culling and banning of the movement of chickens in areaswith con(rmed outbreaks$
-ontaining and eradicating the virus will require a long>term (nancial and
political commitment from ;overnments* including modifying or changing
high risk poultry production and marketing practices to ensure safer supply$
Political instability! 6ue to strikes and other political problems the
distribution is a%ected most of the time which can hamper the distributionchannels$
3n*ironmental actors! 9atural calamity might occur and that willcreate a huge barrier on the way of our prosperity$ Fany farms su%ered fromnatural calamity like earth>quake* storms and so on$
. Financial anagement plan
2.22 Assumption
rowth o( the oultry rice 16A/!
Bast (ve years* the overall price increase in the poultry products egg* chicken
and processed meat of poultry chicken is nearly about ?S to IS$ ut the more
interesting thing is the increased more than ,=S during the last three years$ +o
we assume that for the next ,= years of their forecasting* prices of all poultry
goods will be increased at least by ,=S$ +imilarly because of the inLation it
should always keep in mind that the cost for operating poultry (rm would also be
increased in future$
DebtBe7uity assumtion!<ey sources of (nance for that of the farm in the initial years would be more
based upon the equity with some 0=>01S on debt among with majority would be
long term debt$ Bater on it will be a standard debt> equity form that is ?=#0=$
<oan %nterest rate!Boan interest rate from the bank for this industry is ,.S>,1S and it varies from
farm to farm$ &e assume average interest rate for our farm that is ,/$1S$
2.23 1inancia) P)an
$ays o( nancing!&e are focusing on only 6ebt> equity (nancing and we are taking loans from one
nationalized bank which is Agrani ank and one commercial bank which is ankAsia ltd$ Hur debt> equity ratio would be ?=#0=$
Here we can see that our project generate cash in future or it gives positive cash
fow! At our starting "ear our cash surpus is ow in a#ount $ut in "ear % it generatescash at high in higher a#ount an& it increases #ore in "ear ' an& (!
The production of big size poultry (rms are signi(cant and it some time helps to
reduce the cost and help to become more e7cient in the longer and the shorter
run$ ltimately it helps us to reach economic of scale and utilizing the resources
properly$
The di*ersication
6iversi(cation also provides assistance to the poultry industry$ Any poultry (rm
do not sell single product$ They have several di%erent product and di%erent
consumer segment$ As a result it helps to reduce the risk$ Dven if one of the
products lost its market demand others are helping to (ll the gaps$
+?BN+SS+S
;aintenance cost
Although in our country there are lots of unemployment so it is very easy to get
cheap labor$ To maintain the poultry industry we need lot of man power$ +ometime it is di7cult to (nance all the employees$ And there are also issue that are
related with the maintains$ "or example it is require having electricity for the
poultry (rm$ ut as we are su%ering from basic utility service it become very
di7cult to get the necessary energy to maintain the temperature for the hens
and chickens$ ;etting di%erent type of equipment that are used in the poultry
(rm are also very di7cult to manage$ )t requires time$ Foney and man power to
overview all these necessary things$
Eneducated emloyees
)n our country most of the labor forces are un educated$ )t requires some of the
general knowledge and also about the procedure show to deal with the poultry$
Dmployees of the poultry (rm have to understand the quantity require for the
chickens food* what will be the amount in mixture* what medicine require and
how to give these medicine$ ;enerally most of the (rm work in our country has
very little idea about this matter$ And as the most of them are illiterate it is
di7cult to give them training as it requires some educational back ground to
angladesh economy is su%ering from the inLation$ &hich have chain e%ect in
all the way to the agriculture sector as well$ As the cost of necessary raw
material increases the ultimate negative impact is on the (rm owners carry$ )n
the initial stage the for feeding it ) require to take extra care as in this stage mostof the chickens lost out$ +o with high initial cost it is possible to face (nancial
di7culty and under pressure$
<ack o( medicine
)n the recent years all around Asia the poultry (rms were hardly hit by the deadly
bird Lu$ The problem with the bird Lu is that it not only destroys all the chickens
but also this virus can a%ect the human being$ +o if in angladesh we can not
protect our poultries from these viruses then our poultry (rm owners might face
problems in the future$ )t is not only the medicine for bird Lu but also for the
protection from the other diseases$ The government has restriction on importing
of these medicine and some of these are not produce in our country$
High uses o( utility
The cost of using utility is increasing continuously$ To maintain a poultry (rm it
requires heavy use of electricity and also water$ +o using electricity some timesbecome burden for the poultry (rms as the (rm owners have to pay the excess
bills$ And in many places in our country the proper service of utility are not
available$ +o even the utility are exists some times these are out of service$ And
alternative of these utilities are very hard to manage$
OOT7NITI+S
Potentiality o( a huge market
angladesh is one of the biggest markets in the south Asia for the poultry
product$ As the population is booming the demand is always exceeds the supply$
+o in the poultry industry three are less risk because there will be always
consumer who will want these product$ There is also scope for more demand in
the future because now days the poultry product become more and more
popular$ There are lots of ways these poultry products are consume$ +o targeting
these huge population and future increases in demand give us encouraging
Hur country has very less employment opportunity$ This situation is even worse
in the rural areas$ )t is important to create job for the well being of the societyand for the nation$ As the employment crates it also strength the rural and
national economy$ There are jobs are created directly and also indirectly those
who are involve in distribution* selling and processing di%erent products from the
poultry$
T+?TS
Diseases
"or angladesh in the poultry industry there are many diseases can be seen as
threats$ There can be more diseases exist in the poultry (rm and this could be
very much risky for the existence and to compete$ i&# u is an example of
deadly diseases* for which a poultry (rm can be lost it ground$ )t takes years to
recover if any (rm is infected with the bird Lu$ ut there are also bigger picture
once a poultry (rm is a%ected with virus it spreads very quickly though out the
region as result the whole industry su%ers$
<ack o( medicines
&e have shortage of medicines import because of complicated procedures$ Fany
poultry owners fail to get medicine in time and also su%er from shortage$ +o
have to buy this medicine in higher price$ There are also lack of coordination
between the importer and the supplier and it creates confusion and miss
communication among the poultry owners$
luctuation o( the (ood rices
"ood price are Luctuating all the time$ The inLation rate is increasing alarmingway$ &hich have also negative impact in the pricing of the poultry product$ As
the cost of raw material and utility service increase poultry product cost are
increasing too$ There is no price tag for the product$ As the price is always down
and up it is crating dissatisfaction among the general consumers$ &hen the price
increases without any prior notice the sales volume also decrease$
High death rate o( small chickens
The death rate of chicken is reach in peak if the whether is not our side$Dspecially in the summer because of hit lots of chicken lost life$ The cost of these