Ostrich Farming

ContentsThe rabbit breeds, which are popular in the area, are New Zealand White, Californian, Soviet Chinchilla and Gray Giants. These rabbits are reared for their meat as also for fur and wool.

Breeding stock for a rabbit farm may be bought from local breeders. Medium-sized rabbits breed at 6 to 7 months of age and give birth after a month of gestation. Female rabbits can produce up to 50 live rabbits annually, with births high during the summer. They produce an average of 9 kits per birth.

Rabbit Farming Essentials Check with your local office about regulations that you must comply with in relation to

rabbit farming. Breeding rabbits for laboratories requires special license and controlled conditions to

meet customer-required characteristics, such as weight and age If you are planning to sell rabbit meat, you should think of slaughtering and storage

facilities in addition to your usual farm facilities Temperature control in rabbit breeding is important as rabbits are sensitive to extreme

temperatures Make sure that you have each rabbit’s health record in order. This is particularly

important if you are raising rabbits for sale as breeding stock. Potential buyers might ask to see them when looking for stocks to buy

Maintain a sanitary operation to prevent the outbreak of disease in your farm that could potentially be damaging to the business

To keep your startup cost low, you can construct rabbit housing yourself from available construction materials you have

1.Introduction...........................................................................................................................2

2. Executive Summary...............................................................................................................2

3. Description of Industry and Opportunity.............................................................................3

4. Economics, harvest Potential...............................................................................................5

5. Marketing Plan......................................................................................................................8

6. Design and Development plan............................................................................................13

7. Production Plan...................................................................................................................15

8. Organizational Plan............................................................................................................19

9. Assessment of risk..............................................................................................................21

10. Financial planning............................................................................................................ 23

11. Conclusion........................................................................................................................24

12. Annexure 1 ...........................................................................................................................

13.Annexure 2.............................................................................................................................

14.Annexure 2.............................................................................................................................

15.Annexure 2.............................................................................................................................

16.Annexure 2.............................................................................................................................

17. Performa Income statement................................................................................................

18. Balance sheet.......................................................................................................................

1. INTRODUCTION:

i. Name and Address of Business Business Name: Bunny farmsOffice/ Farm Address: Kahuta road opposite police academy

SihalaIslamabadPh: 051-13434546Fax: 051-1232432Email: [email protected]

ii. Name (s) and Address (es) of principal(s)

Partners.. Mehwish, NIda , Ahsan and Humera

iii. Nature of Business

This business will provide to consumer different species of rabbit as a pet we sell them directly to different schools zoo and in parks where required and also a very low cost and healthier meat of Rabbits too in our country. This will be achieved by establishing a rabbit farm to grow produce rabbits chicks and selling the rabbit meat to hotels and restaurant.

iv. Statement of Financing Needed

Description of Required work Total Expense (Rs)Net salaries (Detail as per Assumption sheet- Annex 5) 3756000Farm Supplies (Feed) 1530000Office Renovation (Once) 25000Advertising Budget 870600Land Rent (5 acres) for 1 year 480000Utility Bills 84000Fuel/Transportation 60000Selling Expenses 60000Entertainment 36000Miscellaneous 24000Farm Construction (Paddocks, Rooms, Fence etc) 2500000Equipment, Machinery, Vehicles, Furniture & Fixtures 2073600300 Chicks @ 14000 per 1 chick and 3 Egg laying Trios @ 250000 PER Trio 4950000TOTAL FINANCING REQUIRED 16449200

Note: Details as per Annexure-5 (Assumption Sheet)

1. Executive summary

The Ostrich is an endemic bird of African origin. It is characterized by its ability to survive in temperatures ranging from two to fifty degrees Celsius; it can be reared on barren land and mainly feeds on Alfa-Alfa, Lucerne and water.

Today, ostrich farms are considered to be among the most profitable agricultural projects. Ostriches are raised commercially for their meat, hide and feathers. Currently commercial farming is going on in about 100 countries in all continents and regions

Ostrich meat is “Halal” and it was eaten by companion of Holy Prophet (PBUH) after accepting Islam.Pakistan is one of the most suitable places to undertake commercial farming. It has cheap labor, a suitable climate, inexpensive fodder, low business cost.

Agriculture shares in Pakistan’s National GDP 21.0 % and Livestock share in National GDP 11.4 %. And an increase in Meat and Meat preparation exports 39.8 %/.“More than 50% Pakistanis prefer meat over vegetables and pulses” (GALLUP PAKISTAN Islamabad: March 30, 2009)

Over the years, many changes have been observed in the pattern of meat consumption in the country.

There were 10.8 million hypertension cases in Pakistan according to the National Health Survey 1994. According to 1998 estimates there are now over 12 million cases. Nearly one-third of all deaths in the country are due to heart disease, and 1% of babies born here, 5% of school-age children, and 14% of the adult population suffer from some form of cardiac disorder.Ostrich meat is low fat and cholestrol free which can save many of cardiac patients of pakistan.

Chicken, beef, mutton, fish suppliers are competitors for ostrich, but due to its low fat meat, luxurious leather, fancy feathers, and oil ostrich will defend its position in market.

The ostrich industry is a growing economic sector that is gaining popularity within the market as recognition is given to the characteristic low fat and cholesterol content of the meat which makes it the healthy alternative to other red meat.

There are a significant number of households, health conscious individuals, restaurants and hotels are interested in ostrich low cholesterol and healthy meat and leather industries in Pakistan is the best potential market for ostrich leather.There is a well established Export Market for Ostrich Meat and leather in Iran, Saudi Arab and UAE.

There are four Major markets for Ostrich and its products. Due to friendly nature and beautiful looks, Ostrich is very popular as a pet bird in Pakistan. And the most prominent Pakistan meat

and leather market: as many restaurants, modern retail and hyper markets are willing to pay premium prices for regular supply of Ostrich meat. Numerous leather and pharmaceutical industries in Pakistan are interested in buying Ostrich Oil, leather and feathers.For export there is a great demand of ostrich meat and leather in Iran, UAE, Central Asia, Far East and Korea.In Pakistan, Many farmers have started buying Ostriches from other farmers. Many new farmers will buy chicks and eggs from senior players of industry.

The business shall be named SKIES ostrich farm.The company will be providing brochures regarding the benefits derived from ostrich products and distribute it to potential customers. This is to create awareness about ostrich and the existence of the ostrich farm and to eliminate any uncertainties and confusions about ostriches.Website with Name of www.skiesostrich.com will be established.

The business is a general partnership at will consisting of three partners. The partnership agreement shall set forth the capital contributions needed and the share of each partner including the profit and loss ratio.

1: **** **** Sultani2: **** Alam3: **** chaudhary

With a capital of Rs. 16449200/- we will start a farm by buying and grow owing 300 chicks beside 3 egg laying Trios. 300 Chicks will be grown to reach slaughter able age for 12 months. Mean while new chicks will be produced through eggs laid by 3 Trios and we would get above 300 chicks available for next year. Fast growth and high production level will make the ostrich meat cost competitive. By selling meat @ Rs. 400/- per Kg beside by-products like Hide and Plumage of Ostrich Pay back period for this project is expected 1.4 years. Overall this is a very profitable venture and virtually there would be no competition in beginning period of this project.

2. Description of Industry and Opportunity

With the meat situation what it is and the economy in turmoil now is a good time to consider the rabbit business. The best way I know to put good food on the table and a few Rupees in your pocket, without a large investment, is raising rabbits. The profits can come in many ways: You can sell them to markets as pets, Schools or in parks zoo etc, even the Rabbits skin is use as wool. Meat, however, is by far the most important product.

Large variety of possible products and their expected high profit potential. Currently commercial farming is going on in about 100 countries in all continents and regions. Some countries where this is done with official backing are: Saudi Arabia, China, Turkey, Iran, Egypt, Jordan, Israel, and many African countries.

Pakistan is one of the most suitable places to undertake commercial farming. It has cheap labor, a suitable climate, low business cost and a population of businessman/farmers/investors who are willing to enter into this new venture.

Rabbit meat is light, healthy, low-fat, tender and also very tasty and easily digestible Meat is highly delicious and healthy. Most importantly, It can be sold at a price of PKR 150/Kg with great profit. People at Pakistan cooked rabbit meat with normal cooking methods and all of them appreciated the taste and most of them ordered it at a high Price. Many professionals including Top chefs of Pakistan tested rabbit meat and appreciated its taste.

Rabbits are farmed-raised for their meat and fur. The fur of the rabbit is known for its warmth and is best known for use in the lining of coats. Rabbit fur is also used in dressing to line hats, gloves and shoes. It is also used for stuffing, bedding and making felt.

Opportunity Size:

Rabbits are used for their wool, fur, and meat. They are also used as testing specimens by laboratories. Their breeds usually determine how they are used. And so, before starting a rabbit farm, it is important that a prospective rabbit breeder determines to whom he should sell his rabbits. Will it be to restaurants, meat shops, individual purchasers, schools, laboratories, hospitals or breeders?

3. Economics, harvest Potential

No other animal multiplies itself as fast as Rabbits. Rabbits produces at least 144 baby rabbits every year. Rabbit meat is free of any unnatural harmful treatment

MEAT PROTEIN FAT CALORIES

Rabbit 20.8 10.25 795

Chicken 20.0 11.0 810

Beef 16.3 28.0 1440

Lamb 15.7 27.7 1420

1. The meat has a high percentage of easily digestible protein.

2. It contains the least amount of fat among all the other available meets.

3. Rabbit meat contains less calorie value than other meats.

4. Rabbit meat is almost cholesterol free and therefore heart patient friendly.

5. Rabbits are one of the most productive domestic livestock animal there is. Rabbits can

produce 6 pounds of meat on the same feed and water as the cow will produce 1 pound of

meat on the same feed and water.

6. So as you can see there are many health benefits to eating rabbit meat. It is healthy for

you and cheap to produce. Why not try to incorporate some rabbit meat into your diet

today.

INDUSTRY ANALYSIS

i. Macro Environment (Economy, Culture, Technology & Legal)

Economy:Food prices especially mutton and beef are very expensive in Pakistan. By establishing own farm and self production makes Rabbit meat economical. Production of rabbits can improve economical situation of Pakistan as we can produce and export the Rabbits Meat, , Skin of rabbit use as a wool which are highly demanded items in western markets.

Culture: Pakistanis are meat lovers. It is part of our culture to serve meat made dishes for our guests and also to prepare and serve meat made dishes on special occasions. Meat is cooked in variety of manners which include Karrahi, Kabab, Korma and Pulao etc. Rabbit would provide a healthier and less costly alternative to our society in competition with beef and mutton.

Technology:Rabbit farming requires modest investment as it needs only simple facilities and small land area. A small rabbit farm could have 15 to 100 rabbits requiring between 5 Lack and 10 lack Rupees in startup capital. To start your rabbit farm, prepare a rabbit hutch that is well lit and well ventilated with heating and cooling systems. Metal cages are usually recommended for its ease of cleaning. Equip the cages with feed hopper, watering system, and nest box.

Legal:Farming is not only legal business; it is also promoted by Government. There are not legal issues involved in this business.

ii. Specific Industry Environment, Future Outlook, Trends of Industry, Growth Rate, Govt. Policies and Competitor Analysis (Direct and Indirect)

In Pakistan Ostrich industry is new and a few farms have been established which are mainly located in Sind area. Only one company “Pakistan Ostrich Company” based in Karachi is promoting Ostrich business by importing, selling and growing ostrich chicks.

Future of Ostrich farming is so bright that this bird is also known as “Future Bird”. Ostrich meat is healthier with very low fat content. Beside its meat, all of its part including hide, Feathers, Bones are sold and have good demand in western countries. In Pakistan growing demand of meat and corresponding increase in beef, mutton and chicken prices would help Ostrich business prosper rapidly because it is healthier and less expensive alternative for these.

Competition level is not significant at the moment and especially there is no Ostrich Restaurant operation in Pakistan at the moment. Similarly ostrich is not at all a part of menu for hotels or restaurants in our country. In Europe and America many Ostrich Restaurants are operational

and ostrich meat has already become famous a healthy meat having low fat and calories content.Ostrich leather is the third most luxurious leather after crocodile and snake.Ostrich feather are used in fashion industry.

iii. Market Segmentation Basis and Identification of Target Market

Although rabbit meat is suitable for eating and much healthier alternative for Mutton and beef and can be offered to young to old all age people living all over Pakistan but we will specifically target Top Class hotels and restaurants located in Rawalpindi and Islamabad to enter into market. The fur of the rabbit is known for its warmth and is best known for use in the lining of coats. Rabbit fur is also used in dressing to line hats, gloves and shoes. It is also used for stuffing, bedding and making felt. So we sell rabbit fur to different industries in Pakistan that are involve in stitching business.

4. Marketing Plan

i. Products

Meat: The meat has a high percentage of easily digestible protein.It contains the least amount of

fat among all the other available meets.Rabbit meat contains less calorie value than other meats.

Rabbit meat is almost cholesterol free and therefore heart patient friendly.

Rabbits are one of the most productive domestic livestock animal there is. Rabbits can produce 6

pounds of meat on the same feed and water as the cow will produce 1 pound of meat on the same

feed and water.

Rabbit fur: Rabbits are farmed-raised for their meat and fur. The fur of the rabbit is known for its warmth and is best known for use in the lining of coats.

Rabbit fur is also used in dressing to line hats, gloves and shoes. It is also used for stuffing, bedding and making felt

Rabbit as a pet: there are a lot of Montessori schools in Rawalpindi Islamabad where there is a type of mini zoo Other than that different public parks Like Ayub park We can also sell rabbits their And also a pet market situated in Rawalpindi college road.We also sell our rabbits through OLX where individuals can contact us if they are willing to purchase

ii. Pricing (List price, Discounts, Allowances for middleman, Credit terms)

We’ll sell Ostrich meat @ Rs. 400/- per Kg. This would be a fixed price and no discounts are applicable because there is no competition at the moment and also because Ostrich meat supplied by us is already at competitive price compared with Beef and Mutton.

Average hides size 14 sq.ft/bird having value Rs. 16500/- (USD 25/sq.ft)

iii. Distribution

We’ll distribute Rabbit Meat ourselves for which a Delivery Person would be hired and would also be provided with a Cargo Pickup. Delivery person would be responsible to collect the packed meat against each order to deliver the orders at customer’s doorstep. Thus our

distribution system would not involve any Wholesaler/retails. Our geographic coverage is also limited to Rawalpindi and Islamabad region as we are only targeting the Top class hotels and restaurants with in this area. Same as with the rabbit as a pet

iv. Promotion

Since our target market is limited to top class hotels and restaurants some specific schools children parks and zoo, our marketing strategy would be based mainly on personal selling. We would advertise in newspapers which are read by our target market staying in or visiting these hotels for lunch/dinner and on olx if someone interested to buy rabbit as a pet. We would also advertise in The News, Dawn, Jung and use brochures to create awareness among the customers.

Our advertising budget is

Fig: Advertising Budget

ADVERTISING BUDGET: Description: AD SIZE/TIME RATE (Rs) Ad/month Qty/year Budget required

Jung(Monthly) 5 Column x 3 cm 32000 1 6 192000The News (Rwp) 5 Column x 3 cm 1365 4 48 65520Dawn 5 Column x 3 cm 2700 4 48 129600Colored Brochures 1000 123480Total budget 510600

v. Controls (Sales Forecasts, Marketing Objectives, Sale Targets) At starting of the business we sell the rabbit meat few selected top class restaurant in rwp and Islamabad. At starting almost our starting sales is about 30 to 40 kg per day. We will increase the sale and find more customers in future by creating goodwill other than that we also sell our farm rabbits at different places as pets

Target Market Basis:

1. Rabbit Meat is already popular in foreign countries and foreigners staying in Islamabad hotels are potential customers being already aware of rabbit meat benefits.

2. People coming in these hotels/ Restaurants like to go for something new and also have money to spend.

3. Visitors of these hotels can be easily targeted for healthy, low calories, low fat meat which is already famous in Europe and America

4. We'll only require creating awareness among visitors of these hotels instead of going for big advertising campaigns.

5. Our production capacity can easily meet and fulfill requirement of these hotels based on assumption that 10 Kg/day would be sold to these hotels. Selling 10 Kg/day to only 6-10 hotels/restaurants makes our business highly profitable.

6. Later we can increase of our production to sell rabbit meat to small hotels/restaurants and meat shops.

Marketing Objectives: To create goodwill by providing best services in terms of efficient delivery and consistent

quality. To achiever customer satisfaction through continues interaction and improvement

against feedback.

Sales Objectives: To establish a customer base of 5 hotels/restaurants right in start of business To sell almost 5 Kg meat/day to each customer To increase the customer base up to 7 customers by start of second quarter To increase the customer base up to 9 customers by start of third quarter To increase the customer base up to 11 customers by start of fourth quarter To achieve overall sales revenue Rs. 18,224,000/- with in first year of starting sales.

5. Design and development plan

i. Mission Statement, History of Venture, location and Size of Business

Mission Statement:

To fulfill the food demand for growing population, we have to find out different ways of food production. The rabbits can be a great source of food production.

There is a great opportunity of rabbit farming in our country people also love them as a pets

History of Venture, location and Size of Business:This business is relatively new business in Pakistan but its resemblance with Poultry Farming is a plus point. We have decided to establish our farm in sihala, Islamabad where land is available on rent @ Rs. 40000/- per acre per month. Environment of this area is suitable not only for Ostriches but also to produce its feed which mainly consists of fodder. We’ll start our business at small level by growing 300 chicks along with 3 breeder trios to increase the Ostrich population and attain self sufficiency in production of Ostrich meat for our Restaurant.

ii. Product/ Service Details The ostrich grow to market weight in 12-14 months. They available meat weigh is approximately 90-100 Kg at this time which is roughly 70% of overall Ostrich weight that is normally 130 Kg. We’ll slaughter Ostriches at this age and deliver meat at hotels and restaurants. For this service we’ll use a centrally Suzuki Cargo Pickup with refrigeration facility and deliver the orders at customer’s doorstep. Hotels can then cook Ostrich Meat and offer to their guests in the form of Steak, Karrahi, Kabab and other forms.

iii. Service(s) To start with, we’ll grow ostrich and slaughter it at the age of 12-14 months and deliver Ostrich meat at selected Top class Hotels/Restaurant only. After achieving higher levels of annual Ostrich Production, we’ll start delivery to small hotels/restaurants along with home delivery and also use internet for getting orders.

iv. Farm/Office Equipment and Personnel

Management TeamOwners: **** **** Sultani, **** Alam. **** Chaudhary

Personnel:

1 x Marketing Manager, 1 x Purchaser/ Delivery person, 10x Farm staff, 1 x Driver, 1 x Accountant, 1 x Office boy

Land: 5 Acers

Equipment: 1 Incubator (129 Eggs) , 1 Pump 20 hp, Grass and Fodder cutters

Building: 3 Paddocks as per drawing (attached in Annexure-1) with hay storage, Incubation room and equipment storage rooms. Rest of land to be used for hay and fresh fodder production.

Vehicles: 1 Suzuki Mehran for Marketing Manager 1 Cargo Pickup for meat delivery

6. Production Plan

Ostrich Value Chain

The value chain starts with the rearing of birds in the incubation phase where eggs are hatched in incubators to produce 380 birds per 42 day cycle. Feathers are plucked from the age of 6 months, and slaughter takes place at the age of 12 to 14 months. When slaughtered the adult bird weighs approximately 90kg.

Operating cycle

The comparative economics of ostrich v/s beef cattle indicates that ostrich farming has an edge over cattle farming in terms of high returns on investments. Added to the high returns the operational advantages found are:- The bird can be reared in paddock along with sheep, goat and cattle- The birds need no dipping, drenching, milking and shearing.- The adaptability of the bird is equally high on annual and perennial pastures.

Complete Manufacturing Process

Fig: Manufacturing Process

4 Weeks old Chicks

20-24 Months old

Trios

Eggs Hatching and Incubation

Feeding Growing &

Ostrich are slaughtered to produce

meat

Market

Ostrich Farm production plan consists as shown above consists of the following activities:i. Buying 300 Chicks and 3 Egg Laying Trios from marketii. Trios lay the eggs

iii. Eggs are hatched/ incubated to produce more chicksiv. All Chicks are fed and grown to the age of 12-14 months which are then slaughtered to

produce meat as our end product

i. Hatching Machinery

Model Description: Full Automatic ostrich egg incubator YZTIE-24

Model

Egg Incubator Holding Capacity(PCS)

Voltage Power Consumption

Dimension(length*width*height)(Meter)

Chicken eggs Pingeon eggs

Duck eggsTurkey eggs

Goose eggs

Quail and other birds eggs

Ostrich Ostrich eggs:129pcs 2772 1584 220V

50HZ 200W 1.8*0.85*2

Ostrich eggs holding Capacity: 129PCS

Ostrich incubator characteristics:

1. Dual energy source: Electricity or coal; 2. Fully automatic in temperature and humidity control, automatically alarm when

parameters going abnormal, automatic in eggs turning; 3. Dual-purpose, suitable for both incubation and hatching;

Ostrich incubation technique:

Ostrich incubation period(time), incubation temperature, humidity, and transferring to hatcher date

Incubation period 42 days (Generally)

Incubation temperature 97-98 F(36.1-36.7°C)

Incubation humidity 20-40% RH

Transfer to hatcher date 40th day(reference only)

Hatcher condition (96.8-98.0°F；36.0-36.7℃)

Note: Tips of Incubator use are attached as Annexure-2

INCREDIBLE FEED TO WEIGHT GAIN RATIO:

Farmed animals such as cattle and swine eat steroid-, antibiotic- and hormone-laced feed and they eat an incredible amount of it. Cattle and swine can eat in excess of 20:1 in their feed-to-weight ratio. This means that they have to eat 20 pounds of feed to add 1 pound of weight.

The overall feed-to-weight ratio gain of an ostrich is 2:1 during the first few months of their lives and this climbs to only 3.5:1 during their normal development at 9 months or so. The benefits to you are considerable: less maintenance, less feed and of course less animal waste! It is indeed “the future animal”. The overall feed to weight gain ratio of cattle is 7:1 and that of sheep is 5:1.

Slaughter Birds Low Production

Low Production

Medium Production

High Production

Slaughter Age – Days (1) 365-425 425-485 300-365 180-300

Live weight 85-120 85-130 90-120 90-125

Feed Consumption – kilos (2) 650-785 785-925 470-620 230-435

Feed Conversion (3) 5.5:1 – 9:1 6:1 - 11:1 3.9:1 – 7:1 2:1 – 3.5:1

Nutrition:

Ostrich are browsers and not grazers.  They require rations of high nutrient value with high levels of vitamins and minerals supplemented in the rations to optimize health and maximize their production potential.  The following table lists the rations required at the different stages of production.

Ration Production Requirement

Breeders Off Season Replenishment of depleted nutrient reserves Build condition for the new breeder season.

Breeders in Season Good Egg production, Adequate Nutrient Transfer to ensure strong, healthy chicks at hatch

Baby Chicks 0- 60 days Smooth transfer from Yolk Sac Absorption to External Feed Intake

Grower Birds Optimum Growth RatesOptimum Feed ConversionExcellent Muscle Growth-Meat and Skin Quality (Slaughter birds)Good Reproductive Organ Development (future breeders)

Pre-Breeders Continued Reproductive Organ DevelopmentEarly Puberty

The ability to achieve optimum production is dependent on the production design of rations fed and management standards. When developing budget production costs and revenue, it is essential to know the production potential of the rations used as these have a very significant impact on farm output and overall profitability. To put it simplistically rations can be split into 3 sections as defined below.

Feeding Rates and Consumption:Ostrich breeders require 1.8kgs food as dry matter, this equates to 2.1kgs per bird on dry food as fed basis. When grazing or silage form part of the rations, then it is essential to ensure that sufficient dry matter is consumed to maintain the full balance of the feed.The following tables illustrate the food consumption based on 90% Dry Matter as fed basis and assuming high production rations. Consumption can increase by as much as 30% when rations are nutrient deficient.

Slaughter Bird Age Ration Kilos1 - 60 Days Starter 2561 - 140 Days Grower 107141 - 280 Days Grower 291281 - 365 Days Grower 192

Breeders Days Daily Amount No. Birds Total Kilos No. Birds Total KilosBreeder 252 2.1kgs 2 (Pair) 1058 3 (Trio) 1588Maintenance 113 2.1kgs 2 (pair) 475 3 (Trio) 712TOTAL per annum 365 1533 2300Note that feed consumption on low production rations is generally greater than medium and high production rations.

Details of Suppliers of Raw Materials

Ostrich Chicks and their feed can be imported as well as purchased from local supplier Pakistan Ostrich Company. Pakistan Ostrich Company with its head office in Karachi is currently the only

supplier of Ostrich Eggs, Chicks and feed. Ostrich Feed can also be produced as Ostrich often eat fresh fodder and hay. Ostrich feed can also be purchased from the local market.

7. Organizational Plan

i. Form of ownership (Single owner/partnership or Pvt Ltd Co)

Skies Ostrich farm is a partnership of three persons who will equally invest and would have equal share in profit and loss of the business. All partners will invest their time and efforts for the development, improvement and success of business. However responsibilities would be clearly defined and allocated for smooth running of business.

ii. Identification of Partners or Principal shareholders and their respective Authorities

Since all three partners have equal share in business so they have equal power of voting. However one managing partner would be selected and would be authorized to take decisions regarding matters of Skies ostrich farms.

iii. Middle Level Management Our middle level management will comprise on Marketing Manger, Purchasers/Delivery boy and Accountant.

Marketing Manger:He/She will be responsible to implement the sales and Marketing plan. He/She will visit to potential customers in our target market and persuade them to buy Ostrich meat. He/She will also be responsible to achieve the sales targets as set in Marketing Plan. He/She will also be responsible for forecasting the demand and coordinating with the Directors to adjust the production levels accordingly.

Purchaser/Delivery Boy:He will be responsible to carry out both purchasing and as well as delivery the processed meat to customers who would place order. His duties will mainly be related with field work. He would also be responsible for collection of payment against delivered orders.

Accountant: He/She would be responsible for maintaining and compilation of financial transactions record.

iv. Formal Design of Organization

Organizational Structure: Organizational structure of our firm would be as suggested in the Organizational Chart attached as Annexure 4.

1. **** Alam: He has over 5 years experience in sales and marketing of industrial machinery and would contribute in devising sales strategies. His knowledge of market and experience to create new product awareness quickly would be vital for the success of this project.

2. **** Chaudhary: She is working in a multinational company and can contribute through her contacts for promotion awareness among people to eat healthier ostrich meat instead of beef or mutton. She is also a student of MBA in project management and would contribute also contribute through her project management knowledge.

3. **** **** Sultani: He is student of MBA in project management and has good work experience in administration field. He has also experience of working in HR department. His family background as a farmer is also added advantage for our business.

7. Assessment of Risk

i. S.W.O.T Analysis

Strengths Increasing supply and demand gap for meat in Pakistan Potential for high production levels of birds utilizing available land Potential for self fodder/hay production Fast growth of breeder birds High weight gain ration of Ostrich compared with other animals A combination knowledge and experience of owners spreading on Engineering,

Administration and Human Resource Availability of infrastructure for production and access to market New product with virtually no competition to start with

Weaknesses Lack of consumer awareness regarding Ostrich meats Lack of scientific research in Pakistan so far on Ostriches Un-developed market in terms of Ostrich meat Product Image to be developed yet Lack of Ostrich farming experience and training

Opportunities New market with virtually no competition at the moment No farm operating in our target market region so far Mass production will make prices below beef and mutton Increasing demand of meat with decreasing supply Increasing meat prices in the market Opportunity to capitalize on broadening consumer tastes

Threats Threat of new entrants in the market

Risk of supply exceeding demand if markets not developed successfully

ii. Contingency Plans

Our strategy is to target top class hotels/restaurants within Rawalpindi and Islamabad region for our first year of production. In second year of sales we’ll establish our own restaurant which would be located in Food Street at Rawalpindi Cricket Stadium. We’ll sell cooked/un-cooked ostrich meat at this restaurant. Its location would be important for success as hundreds of food lovers visit this place daily to fulfill their quest for restaurant food. By selling cooked food we would be able to earn additional profit compared with un-cooked meat.

Due to unexpected matters if we are unable to maintain a sufficient market in Pakistan then Export option is also available as there is a well developed ostrich meat and leather market in Europe and Africa and as well as in Arab countries.

8. Financial Plan

I. Sources and Applications of funds (First Year)

Total capital equaling Rs. 16449200/- is required for this project. This amount is totally invested by the owners with equal share. No bank loans are being taken due to very high rate of interest.

II. Break Even Analyses

Fixed Cost = 5444320

Selling Price = 400

Variable Cost = 200

BEP = Fixed Costs / (selling price - variable costs per unit)

BEP = 7331320/ (400-200)

BEP = 27222 Kg Ostrich meat

III. Pay Back Period

Pay Back Period: = Total Investment/Average Net Profit

= 16449200 / 11220513.52

= 1.46599351 Years

IV. Proforma Income Statement for (First Three Years) Attached as Annexure-6

V. Proforma Cash Flow Projections ( First Three Years) Attached as Annexure-7

VI. Proforma Balance Sheet (First Three Years) Attached as Annexure-8

Conclusion

The environmental benefits, the excellent feed-to-weight ratio gains and the breeding

proliferation of ostriches make commercial ostrich farming worthy of investigation.

We also know that ostrich handling after 4 - 5 months is very low and a good farm manager

can easily take care of a farm of 10 breeding ostriches and hundreds of offspring.

From a consumer and marketing point of view, people are eating a much healthier diet and

are turning to ostrich meat as a beef/mutton alternative. Production of low fat and low

cholesterol meat will allow consumers to have energy protein with out fear of heart and

other health problems. The demand for luxurious and easily recognized ostrich leather

continues. The cosmetic Industry continues it’s never ending search for eternal youth and

exotic ostrich oil is beginning to receive its long overdue recognition. And, of course, ostrich

feathers are a permanent fixture in the world's carnivals, Mardi Grass and festivals

everywhere. After the success of poultry industry during last two decades ostrich farming can

open new vistas for development in Pakistan, Very soon we can be the world leader in ostrich

farming.

In short, Farming ostriches can certainly be financially rewarding.