Broiler Farming Project Report 5000

 PROJECT REPORT FOR  ESTABLISHMENT OF 5,000 COMMERCIAL 

BROILERS PER CYCLE (ALL IN ALL OUT SYSTEM)

This project report has been worked out subject to the following conditions:

  1. Hybrid Broiler Chicks will be purchased from commercial hatcheries for every batch.
  2. Sale price of finisher birds will change in accordance with change in purchase price of feed & chick .3.Bio-security measures must be strictly  adopted.4.The farm must be managed by the entrepreneur on scientific lines.5. The scheme is a broad guideline and is likely to vary as per the change in price/cost of various specified items.They must check the following points before starting a Broiler farm.
  1. Availability of hybrid broiler chicks in local  market
  2. Nearness of the Farm to Veterinary Hospital, Animal disease diagnostic laboratory
  3. Marketing facility & demand of Broiler in local market
  4. Availability of broiler feed & medicine in their locality.

Government subsidy for this type project– Back ended capital subsidy is available for  this project subject to a ceiling of Rs 280000/- for a unit of 5000 birds for APL farmers. SC/ST/BPL farmers , people in  notified   difficult areas, farmers from  NEStates including Sikkim can avail 33.33% subsidy with ceiling of Rs 373000/- for five thousand birds.  (Notified Difficult Areas like Leh, Ladakh, Kargil areas for, areas above 11,000 ft. height from mean sea level as well as difficult islands.)They must check the following points before starting a Broiler farm.

  1. Availability of hybrid broiler chicks in local  market
  2. Nearness of the Farm to Veterinary Hospital, Animal disease diagnostic laboratory
  3. Marketing facility &demand of Broiler in local market
  4. Availability of broiler feed & medicine in their locality.

Housing for broiler chicken

Floor – One square feet floor space per bird  is required for broiler chicken. The floor of the poultry house should be concrete cemented, strong & rodent proof ,and have slope towards door. Plinth should be 2ft. higher than ground.Walls-lengthwise wall may be only one foot high, brick wall on sides,4ft wire netting above brick wall should be supported with angle iron. End wall of poultry house should be made of bricks. Maximum breadth of poultry house should be 27 feet. There should be partition in every 500 squire feet.Roof – Roof of the poultry house may be of asbestos or tile. Low cost roofing material can be used to reduced cost of construction. It should  12-ft. high at the center and 6-8ft. high on the side wall with 3ft extension of roof  beyond wall   to prevent rain water from entering poultry house.

broiler poultry house

Techno-Economic Norms
PARAMETERSVALUE
System of rearingDeep Litter system
Batch size5000+5% extra
Batch interval52 days(45 days rearing +7dayscleaning period)
Mortality of birds5%
Cycle size5000
Cost of day old chicKRs.25
Cost of kg of feedRs.28.00
Cost of equipment ( waterers feeders etc.)Rs.15/bird
Cost of insurance medicine vaccine etc.Rs.4/bird/year
Insurance per bird0.5
Insurance of building and equipments0.001
No of  batches/year introduced first year6
No of  batches /year(sold)6
No of batch introduced 2-5 years7
No of batch sold  2-6 years7
Cost of kg of live broilerRs.78
Feed conversion ratio FCR1.68 to 1.72
Average wt. of bird at the time of sale2kg
Average age at sell39 days
Feed requirement to attain 1.8kg body weight3.5kg
Rearing period45 days
Cleaning periodOne week
Interest rate12%/year
Repayment period6 years
ECONOMICS OF BROILER FARMING TO PRODUCE 5000 BROILER POULTRY PER CYCLE
Capital cost(Amount in Rs.)
Construction of Brooder cum grower house one Sq.ft/bird for 5000 birds @Rs.150/sq.ft750000
Equipment for 5000 birds @Rs.15/bird75000
Electrification & electrical installation60000
Feed store 300sq.ft@200/sq.ft60000
TOTAL CAPITAL COST945000
Working Capital
Cost of chicks 5150@  RS.25/chick (5% extra for mortality  2% free fro hatchery )228750
Cost of concentrate feed@3.5kg/bird for5000 birds @28/kg for first bath490000
Insurance For First Batch Bird2500
Insurance of shed building and equipment9450
Misc, expenditure i.e. electricity vaccine medicine including veterinary aid @Rs4/bird/batch20000
CONTINGENCY24300
Total working capital775000
Total project cost1720000
Margin money 25 % of project cost430000
Bank loan 75%1290000
CASH FLOWProject period (year) Amount in Rs.
iiiiiiivvvi
Cost of day old chicks chicks/year@/bird772500

 

901250901250901250901250901250
 Cost of feed for birds @3.5kg/bird  Rs.28/kg294000034300003430000343000034300003430000
Misc, expenditure i.e. electricity vaccine medicine . including veterinary aid @Rs4/bird /batch120000140000140000140000140000140000
Insurance  of birds150001750017500175001750017500
Insurance of shed building and equipment945094509450945094509450
Total expenditure385695044982004498200449820044982004498200
Sale of broiler @ Rs.146/bird  (2 kg @ Rs.73/kg)4380000

 

51100005110000511000051100005110000
Sale of manure150001750017500175001750017500
Sale of gunny bags210024502450245024502450
Depreciation on shed and building10% per year324000
Depreciation on equipments @15%/year13500
Total439710051299505129950512995051299505467450
Gross profit540150631750631750631750631750969250

 

Calculation of BCR and IRR
 YEAR123456
Capital Costs945000
Recurring Costs385695044982004498200449820044982004498200
Total Costs480195044982004498200449820044982004498200
Benefit439710051299505129950512995051299505467450
Net Benefit-40485063175063175063175063175096925

 

Sl noFinancial indicatorsEstimated valuePreferred value
Present worth @15% DF17287490.49
Present Benefits @15%DF18922856.69
1Net Present Worth (NPW) @15% DF1635366.20Should be+ve
2Benefit Cost Ratio(BCR) @15% DF1.094:1>1
3Internal Rate of return (IRR)28.70%>15%
4Debt Service Coverage Ratio(DSCR)1,798>1.5

Bank loan-1290000  Grace period -6month Loan amount at the end of grace period-1290000+77400=1366400

S.NoMonthly InstallmentInterestPrincipal Balance
01366400
12671313664130491353351
22671313534131801340171
32671313402133121326859
42671313269134451313414
52671313134135791299835
62671312998137151286120
72671312861138521272268
82671312723139911258277
92671312583141311244146
102671312441142721229875
112671312299144151215460
122671312155145591200901
132671312009147041186197
142671311862148511171345
152671311713150001156345
162671311563151501141196
172671311412153011125894
182671311259154541110440
192671311104156091094831
202671310948157651079066
212671310791159231063143
222671310631160821047061
232671310471162431030818
242671310308164051014413
25267131014416569997844
2626713997816735981109
2726713981116902964206
2826713964217071947135
2926713947117242929893
3026713929917414912479
3126713912517589894890
3226713894917764877126
3326713877117942859183
3426713859218122841062
3526713841118303822759
3626713822818486804273
3726713804318671785603
3826713785618857766745
3926713766719046747699
4026713747719236728463
4126713728519429709034
4226713709019623689411
4326713689419819669592
4426713669620017649574
4526713649620218629357
4626713629420420608937
4726713608920624588313
4826713588320830567483
4926713567521039546444
5026713546421249525195
5126713525221461503734
5226713503721676482058
5326713482121893460165
5426713460222112438053
5526713438122333415720
5626713415722556393164
5726713393222782370382
5826713370423010347373
5926713347423240324133
6026713324123472300661
6126713300723707276954
6226713277023944253011
6326713253024183228827
6426713228824425204402
6526713204424669179733
6626713179724916154817
6726713154825165129652
6826713129725417104235
692671310422567178564
70267137862592852636
71267135262618726449
7226713264264490

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