Executive summary:Poultry is an emerging and important sector
that has been contributing progressively to our economy from the
past decade. Poultry is one of the fastest growing and most
promising industry with the brightest future in our country.
Poultry sector are playing a very vital role in the reduction of
poverty, malnutrition and unemployment problem of our
country.Venture category of our business will be partnership. It
will run under the partnership act of 1932. The partnership will be
partnership-at-will where the partnership is not for the fixed
period of time and where no provision is made as to when and how
the partnership will come to an end according to partnership act
1932 (section- 7). Business commenced by 2013.The product will be
chicken and its egg. It will be distributed by the firm to
customers. The most important requirement in any kind of business
is purpose. Our purpose is to satisfy the customer by providing
quality product. Our business will meet the demand of the
restaurant, super shop, hotel, community center, bakery and
catering houses.Market characteristics of the poultry farm is not
very much competitive in that way the demand of the hens, eggs is
very high but the supplier could not able to satisfy the demand of
the customers and consumers. VisionTo be one of the most leading
chicken suppliers in Harare and Zimbabwe at largeMissionTo
effectively and efficiently provide a solution to our customers and
our promotersCore rulesProfessionalism, integrity and innovation
ObjectiveTo provide chickens profitably over short turnaround
cycles.Business concept:Purpose of the venture: To meet the demand
of customer and built strong customer relationship. To create the
employment opportunity for others. To contribute the economy of the
country.
Objective of the founders:The major objective of the founders is
reducing poverty, malnutrition and unemployment problem of our
country. Besides, we want to provide quality product to customer
and maintain the supply sufficiently.
Description of the firm:This is a partnership business where the
main activity of the firm is to provide quality product through the
Dhaka city. We will collect chicken and eggs from different
producer near to Dhaka city especially from Gazipur. Chicken and
eggs will be distributed to restaurant, super shop, hotel,
community center, and bakery and catering houses around Dhaka city.
Prolong the sufficient supply to the customer is one of our most
important purpose. We want to supply extend area of Dhaka city with
affordable price. Name of the ventureM/S Brothers & Brothers
enterprise
AddressShop no-17, Road no- 6, New airport road, Banani,
Dhaka-1213
FoundersMd. Nazmul HossainMd. Mofakkharul IslamRokeya KhatunMd.
Ahsan HabibMd. Nazmul Hossain
VisionProviding quality product with reasonable price.
Email [email protected]
The Project DescriptionI propose to engage in a Poultry Project.
I intend to carry out this project at my fathers farm in Bindura.
My family is a beneficiary of the land reform programme and we have
built a fowl run at the farm which can accommodate more than 2000
chickens. I intend to start the project with 1000 chicks which is
what I can afford with the funds available. I expect to introduce a
batch of 1000 a month and the fist batch, will be funded by the
loan while the second and the proceeding batches will be funded by
the revenue generated from the sale of the chickens. We have
already been engaged in in this poultry project as a family but we
have been operating at a small scale due to lack of funding. I
believe this opportunity gives me the chance to pursue my own dream
of running my own poultry project. As a student of Agriculture at
the University of Zimbabwe , I feel this opportunity couldnt have
come at a better time as it is. It gives me a fantastic chance to
apply the theory I am acquiring in training. I believe the diverse
skills I am gaining from studying my agriculture degree will come
extremely handy in ensuring that I produce tremendous results in
this project. THE SKILLS I am a student of agriculture at the
University of Zimbabwe. I have been the one to run my familys farm
ever since I was at school and choosing the Agriculture degree was
away of fulfilling a personal vision in Agriculture. I have been
involved in growing crops such as maize, soya beans and sunflowers
which we then used in producing feed for the chickens. I believe
this loan facility will give me an opportunity to pursue my vision
of producing chickens at a larger scale. In other words I have
extensive experience in producing chickens and chicken feeds. I
intend to personally run the project and employ other few general
hand to assist me. I would be based at the farm where I will
undertake this project and I will be commuting to college from
there. I believe that I have both the academic knowledge and
experiences to ensue success of this project. Product or
service:The product is chickens and eggs. The farm will distribute
these products around the Dhaka city. Quality assurance is the main
motto of our business. We are not compromise in the question of
quality. To ensure the quality we always take high care of our hens
and eggs. Now a days, from chickens and eggs harmful diseases are
spread out. But we are supply our chickens and eggs with ensuring
that it is free from all kind of jorum, which can create harmful
diseases. Cost of poultry business is not so high. One can easily
start a business with a minimum amount of money. But our cost of
business is high, because our business is highly future oriented.
The primary cost of our business is given below:ParticularsCost
(TK)Total cost (TK)
Farm
Warehouse
Transportation
Chicken
Egg
Food
Utility
30,000
50,000
2,00,000
1,00,000
50,000
50,000
20,000
5,00,000
We also provide some additional facility to ours customers and
consumers that are not provided by other suppliers: We reached our
product (chickens & eggs) to the customers by our own
transportation with a low transportation cost. If any dreadful
products are identified by the customers we always make it change.
Processed meat are also supply if customer feel need. We also
supply product by credit to a limited amount. Poultry business is
full with competitors. But there have a great prospect of succeed,
because most of the suppliers are not able to adequately supply the
product.
Market research and analysis:As we know, Bangladesh is a over
populated country. So, there is no equilibrium between demand and
supply and more or less suppliers fail to satisfy the customers.
Most of all, in food business if it is daily product there is no
loss. So there is a great prospect being succeeded. Each and every
people need chickens and eggs. Eggs are the ingredients of cake,
bread, omelet etc. So restaurant, bakery, hotel, community centers
needs eggs and chickens everyday. As the different customers has
high demand of chickens and eggs we have a high prospect of
success, and for success we need continuous market research by
following way: Customer scenario:As we all know that, chicken and
egg are very nutritious food items. Doctors always prescribe it as
nutritious food. From statistical data, each and everyday a family
needs at least four eggs in this country. Most of all children are
fond of egg. So there is a great prospect to being succeeded as
being act as distributor. We will distribute our product to
household customers, restaurant, hotel, bakery, cookery etc. .
Analyze competitors:It is essential for every business organization
to identify its existing competitors their skill, strength and as
well as weakness. We have huge number of existing competitors but
most of them have not high skill and future orientation. The future
competitors can easily entre the business because of its low cost
and its industry structure is very easy.
Price system:Pricing is most important factor in any kind of
business. But in food business, it becomes more crucial factor.
Most of our businesses fail to set proper pricing. We will consider
this factor securely. Our farm will provide chicken and eggs with
affordable price.
Market plan Marketing strategy: We use new processing options
which can differentiate our product from the products of others. We
ensure quality product with affordable price. We always search for
new quality factors related to our products that customers wish to
see in the product. Provide hygienic and nutritious feeding that
may help to attain distinguishable quality factors like color and
test of meat.
Distribution channel: We are not going to use any distribution
channel at first. We will use personal sales representative for
selling our product. Our sales representatives will directly go to
our customers and collect the order. As per their order we will
directly supply chickens and eggs to the customers by our own
transportation.
CustomersManufacturer
Manufacturing and operations: Facilities and location: We always
try to give high facility to our customers. For quickly serve the
customers we have a farm and warehouse in Gazipur that is near
Dhaka city. We also have an office in Banani which address is- Shop
no-17, Road no- 6, New airport road, Banani, Dhaka-1213 for quick
access with the customers. For making customers order easy we also
have a email address, so that customers can order us easily. We are
going to introduce own website for customers convenience. We
moreover supply our product (chicken and Egg) to the customers by
own transport system with full responsibility.
Inventory management:Our main inventory is chicken and eggs.
First of all we will buy chicken and eggs from different area
around Dhaka city especially from Gazipur and put it into our farm
and warehouse. Then we will clean the dust from eggs and test the
chickens health that means we ensure that chickens are not affected
by any harmful disease. Then we supply the chickens and eggs to
different restaurant, super shop, hotel, community center, and
bakery house as per their order. The ProductThe eggs produced at
the poultry farm should be of premium quality and shall
differentiate itself with its larger size and weight. The eggs
produced in the farm will be of 60g per egg compared to common
imported white eggs of 45g per egg. The eggs will be produced in an
environmentally friendly manner.The price of the eggs will be
competitive considering the high quality and freshness of the eggs
in comparison to the price of imported eggs of the same quality.
The proposed farm will have the capacity to produce 250 eggs per
day, and eggs shall be sold to the market at BDT 8 per egg in the
first year of operations. To ensure a non-stop stable supply of
eggs to its customers, one rearing house and another layer houses
(26' x 36' each) shall serve to maintain a continuous
supply.CompetitorsOnce the product is introduced, small businesses
which are more organized in this kind of production and
distribution may see the opportunity and seize it before the
product is firmly established in the target markets. Other forms of
competition will emerge from importers of similar size and similar
quality eggs. However, the key target market for the locally
produced eggs would normally be high quality local produce. Hence,
competition will be limited and prospects for locally produced eggs
are expected to remain good.Target MarketMarket analysis Bangladesh
is an over populated country. So, there is no equilibrium between
demand and supply and more or less suppliers fail to satisfy the
customers. Most of all, in food business if it is daily product
there is no loss. So there is a great prospect being succeeded.
Each and every people need chickens and eggs. Eggs are the
ingredients of cake, bread, omelet etc. So restaurant, bakery,
hotel, community centers needs eggs and chickens every day. As the
different customers have high demand of chickens and eggs we have a
high prospect of success.Market NeedsThe target market prefers
premium quality eggs whose origins are familiar to them. Quality,
fresh produce coming from known environments have an edge over
similar products imported from unfamiliar producers.
The concept of 'ethical purchasing' and 'positive buying' would
be an important driving force in making purchasing decisions at
high end resorts. The facts that the eggs purchased contribute to
job creation in the community and empowerment of women or
contribute to the betterment of other disadvantaged people are very
important factors taken into consideration in the target
market.
Strategy and Implementation Marketing PlanPositioningThe eggs
farmed at the poultry farm should be emphasized as being of premium
quality and distinguish themselves with its larger size and weight
of 60g per egg compared to common imported white eggs of 45g per
egg. The fact that the eggs are produced in an environmentally
friendly manner must also be highlighted.PricingPricing for the
eggs should ideally be market driven based on the weight of the egg
and the targeted market segment. Its pricing structure should be
based upon the targeted clientele and a survey of egg suppliers and
their prices in Bangladesh. For the purposes of this study, we have
assumed the tourist market as the key market and estimated a
selling price of BDT 8 per egg in the initial year of production.
The price of the eggs are highly competitive considering the high
quality and freshness of the eggs when compared to the price of
imported eggs of the same quality. For the purposes of this study,
it must be noted that the cost of feed has been assumed to at 50%
lower than the actual cost of feed, if imported. It would not be
possible to maintain a selling price of BDT 8 per egg unless cost
of feed is minimized by 50% or a subsidy or a grant is given to the
poultry farm. PromotionBrochures and documentaries should be
prepared capturing the farming process and benefits of the farm to
the local community. Such material should be carefully packaged and
distributed to the Dhaka city and other targeted places Invitations
should be sent to the resort managers and other key staff to visit
the farm and experience the role the farm plays in the
community.
This could be used as a good opportunity to negotiate contracts
and impress them to associate with the farm in providing technical
and financial support.DistributionIt is unlikely that a farm of the
proposed size in this plan would require several distribution
channels to sell its produce. Networking with one or two resorts
will be sufficient to ensure that the entire production will be
purchased by them.
Financial Plan
Sales Forecast:1st year2nd year3rd year
Unit SalesEggsChicken meat192000028800012002880001300
Price Per UnitEggsChicken meatBDT 7.00BDT 0.00BDT 7.50BDT
120.00BDT 8.00BDT 130.00
SalesEggsChicken meatBDT 13440000.00BDT 2160000BDT 144000BDT
2304000BDT 169000
Total SalesBDT 134400023040002473000
Direct Cost Per UnitEggsChicken meatBDT 3.400.00BDT 3.420.00BDT
3.460.00
Direct CostEggsChicken meatBDT 65280000BDT 98496000BDT
99648000
Total Direct CostBDT 652800
BDT 984960
BDT 996480
Gross Margin
Gross Margin %691200
52%1319040
61%1476520
64%
Personnel PlanPersonnel TableYear 1Year 2Year 3
ManagerAdministratorContract labor[3]BDT 1,20,000 96,000
1,20,000
1,32,0001,00,0001,26,0001,44,0001,04,0001,30,000
totalBDT 3,36,0003,58,0003,78,000
About the Personnel PlanIt is assumed that a total of 5
employees will be sufficient to operate a poultry farm of 1000 01
Manager who shall be responsible for the daily management of the
farm site. 01 Administrator to assist the Manager in the management
and financial Areas. 03 Contracted labor to undertake the daily
farm work including cleaning, Feeding and other minor work.
BudgetBudget TableYear 1Year 2Year 3
Expenses(BDT)SalaryEmploy relatedMarketing and promotion
RentUtilitiesOffice
suppliersPackagingvaccination3360001100055000
60000200001800020000240003580001200055000
60000200002000022000250003780001300056000
6000020000220002500025000
total544000572000599000
Major purchasePoultry shedComponent &equipments
900000
000
000
total900000000000
Loans and InvestmentsLoans and Investments Table1st year2nd
year3rd year
EquityinvestmentBDT 12,00,000BDT 00BDT 00
Total amountBDT 12,00,000BDT 00BDT 00
Sources of FundsFor the purposes of this study, it is assumed
that the initial investment will be funded either by 100% equity or
by a mix of grant aid and equity. It would not be feasible to
set-up the business through debt, as it would erode the limited
excess cash flow generated from sales in the form of
interest.Alternative interested parties could seek soft loans
through various government managed loan schemes to minimize the
burden on its cash flow.Use of FundsFunds invested in the proposed
business will be utilized as follows:1. Equipment for 04 Layer
House of 1000 Birds:BDT4,00,0002. Freight & Handling Costs of
Imports: BDT50,000.00 3. Physical Structure for 04 Poultry Sheds
(Material Cost and Labor) :BDT2800004. 02 Sets Automatic DE beaker:
BDT80,0005. Other Accessories: BDT50,000.00 6. Water Storage Tanks:
BDT40,000
SCHOOL OF BUSINESS STUDIES, SEU1