ENVIRONMENTALLY CONTROLLED (EC) BROILER FARM  PROJECT  REPORT FOR  15000  BIRDS

EC broiler farming is becoming very popular in India. It is providing gainful employment to unemployed youths. Poultry  industry is expected to grow  @ 12% in financial year 2022-23.

Advantages of EC broiler poultry farming

1. Comfort level of birds is high in an EC broiler farm
2. Cost of production is low
3. Death of birds is low in comparison to conventional farm (3%)
4. Less floor space requirement per bird resulting in high stocking density
5. Growth rate of birds is uniform.
6. Less manual labour requirement due to mechanization of feeding & drinking
7. Birds get always fresh air & ammonia is removed.
8. There is Improvement in feed conversion ratio (FCR). Simply speaking  less feed is required to produce a KG of broiler meet in comparison to conventional housing .
9. Human error is reduced due to use of electronic controllers and automation.

Disadvantages of EC poultry farming

1- More investment is required in comparison to conventional poultry farm

2.It requires 24X7 electricity supply.

This EC broiler farm  project 15000 birds  has been worked out subject to the following conditions:

1.The entrepreneur/ his manager will obtain training on EC poultry farming

2.Hybrid Broiler Chicks will be procured from commercial hatcheries for every batch.

3.Sale price of finisher birds will change in accordance with change in purchase price of feed & chick .

4.Environment controlled poultry farm will maintain strict bio-security measures

5.The scheme is a broad guideline and is likely to vary as per the change in price/cost of various specified items

The entrepreneur must check the following points before starting an EC 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 poultry in local market
4. Availability of broiler feed & medicine in their locality.

Subsidy available for this type projects: -Odisha farmer can avail subsidy for this type project under Mukhya  Mantri  Krushi  Udyoga  Yojana (MKUY). 50%  subsidy of capital is available for EC broiler farm of  15000 capacity for ST/SC and general women and degree holder of agriculture and allied sector/Transgender/physically handicapped& 40% subsidy is available for the male of general category. Maximum subsidy limit is Rupees one crore under MKUY. Group of Individuals like registered FPOs, FPCs, FPGs, NGOs(Only Societies excluding charitable trusts), SHGs, GPLF,BLF,DLF,PACS, LAMPCS, Farmers Cooperative Societies (including agricultural/ allied sectors) and   Apex Federations such as OMFED,   OPOLFED,   FISHFED and Companies registered under Companies Act 2013 etc. will be eligible for availing CIS to the tune of 40% limited to Rs.50.00 lakh. If all members of the entity are women/ Transgender/SC/ST/PwD/ Graduates in Agriculture and allied discipline, then they will be entitled for CIS @ 50% limited to one crore.

Techno-Economic Norms
PARAMETERS	VALUE
Batch size	15000+3% extra
Batch interval including cleaning period	52 days
Mortality of birds	3%
Cycle size	15000
Cost of day old chick	Rs.35
Cost of kg of feed	Rs.40
Sale price of bird per KG	99
Cost of equipment( drinkers feeders etc.)	Rs.120/bird
Cost of insurance medicine vaccine etc.	Rs.5/bird/batch
No of  batches/year introduced first year	6
No of  batches /year(sold)	6
No of batch introduced 2-7 years	7
No of batch sold  2-7 years	7
Average wt. of bird at the time of sale	2.1 kg
Feed requirement to attain  2 kg body weight	3.2 kg
Interest rate	11%/year
Repayment period	6 years

Economics of broiler  to produce 15000 broiler per batch

Capital cost	(Amount in Rs.)
Land development (lump sum)	25000
Fencing	40000
Construction of Brooder cum grower house @ 0.7 sqft/ bir for 15000 birds  d@Rs.350/sq.ft	36,75,000
Feed store 200sq.ft@400/sq.ft	80000
Office cum marketing room 12’x10’ @600/sq.ft	72000
A  bore well	100000
Pump & Pipe lines to shed	50000
Overhead tank	40000
Equipments for 15000 birds @Rs.120/bird(EC equipments with automatic   feeder, drinker, brooder, etc)	1800000
External Electric connection   with transformer & internal  installation	400000
DG SET 25 KVA	350000
Refrigerator	15000
TOTAL CAPITAL COST	6647000
Working Capital
Cost of chicks 15450@  RS.35/chick	540750
Cost of concentrate feed@3.2kg/bird for15000 birds @40 /kg for first bath	19,20,000
Misc, expenditure i.e. Labour, electricity, fuel, vaccine medicine insurance etc. including veterinary aid @Rs,5/bird/batch	75000
Contingency	37250
Total working capital	2573000
Total project cost	9220000
Margin money 25% of project cost	2305000
Bank loan	6915000

Economics of EC broiler poultry farming with 15,000 broilers /cycle       

CASH FLOW	Project period     Amount in Rs.
	i	ii	iii	iv	v	vi
Cost of day old chicks  chicks/year@35/bird	3244500	3785250	3785250	3785250	3785250	3785250
Cost of feed for birds @3.2kg/bird  Rs.37/kg	11520000	13440000	13440000	13440000	13440000	13440000
Misc, expenditure i.e. electricity vaccine medicine insurance etc. including veterinary aid  & labour charge @Rs5/bird /batch	450000	525000	525000	525000	525000	525000
Total expenditure	15214500	17750250	17750250	17750250	17750250	17750250
INCOME
Sale of broiler @ Rs.207.90/bird  (2.1kg @ Rs.99/kg	18711000	2,18,29,500	2,18,29,500	2,18,29,500	2,18,29,500	2,18,29,500
Sale of manure	45000	52500	52500	52500	52500	52500
Sale of gunny bags	55800	65100	65100	65100	65100	65100
Value of building at the end of  project period (depreciation on shed and building  etc@10%/year)						1530800
Value of equipment at the end of project period (Depreciation on equipment @15%)						277000
Total	18811800	2,19,47,100	2,19,47,100	2,19,47,100	2,19,47,100	2,37,54,900
Gross profit	3597300	4196850	4196850	4196850	4196850	6004650
Repayment to bank	833160	1666320	1666320	1666320	1666320	1666320
Profit before tax	2764140	2530530	2530530	2530530	2530530	4338330

BCR and IRR

Sl no	Financial indicators	Estimated value	Preferred value
1	Net Present Worth (NPW) @15% DF	16143120.20	Should be+ve
2	Benefit Cost Ratio(BCR) @15% DF	1.24:1	>1
3	Internal Rate of return (IRR)	38.28	>15%
4	Debt Service Coverage Ratio	2.63	>1.5

Loan Repayment  plan for 15000 broiler  farm:- Repayment of loan will start after grace period of six months. Total loan repayment period is 6years. Details of monthly installment, interest payment, principal payment and balance are given in repayment schedule for 15000 broiler poultry. Six monthly installment will be paid in first year & 12 number of installments will be paid from second year onwards. Bank Loan=6915000

,Interest Rate=11% Grace period – 6 months. Total loan amount at the end of grace period ,Bank Loan=6915000+380325=7295325

S.No	Monthly Installment	Interest	Principal	Balance
0				7295325
1	138860	66874	71986	7223339
2	138860	66214	72646	7150693
3	138860	65548	73312	7077381
4	138860	64876	73984	7003398
5	138860	64198	74662	6928736
6	138860	63513	75346	6853389
7	138860	62823	76037	6777352
8	138860	62126	76734	6700618
9	138860	61422	77437	6623181
10	138860	60712	78147	6545033
11	138860	59996	78864	6466170
12	138860	59273	79587	6386583
13	138860	58544	80316	6306267
14	138860	57807	81052	6225215
15	138860	57064	81795	6143419
16	138860	56315	82545	6060874
17	138860	55558	83302	5977572
18	138860	54794	84065	5893507
19	138860	54024	84836	5808671
20	138860	53246	85614	5723057
21	138860	52461	86398	5636659
22	138860	51669	87190	5549469
23	138860	50870	87990	5461479
24	138860	50064	88796	5372683
25	138860	49250	89610	5283073
26	138860	48428	90432	5192641
27	138860	47599	91261	5101380
28	138860	46763	92097	5009283
29	138860	45918	92941	4916342
30	138860	45066	93793	4822548
31	138860	44207	94653	4727895
32	138860	43339	95521	4632375
33	138860	42463	96396	4535978
34	138860	41580	97280	4438698
35	138860	40688	98172	4340527
36	138860	39788	99072	4241455
37	138860	38880	99980	4141475
38	138860	37964	100896	4040579
39	138860	37039	101821	3938758
40	138860	36105	102755	3836003
41	138860	35163	103696	3732307
42	138860	34213	104647	3627660
43	138860	33254	105606	3522054
44	138860	32285	106574	3415479
45	138860	31309	107551	3307928
46	138860	30323	108537	3199391
47	138860	29328	109532	3089859
48	138860	28324	110536	2979323
49	138860	27310	111549	2867773
50	138860	26288	112572	2755202
51	138860	25256	113604	2641598
52	138860	24215	114645	2526953
53	138860	23164	115696	2411257
54	138860	22103	116757	2294500
55	138860	21033	117827	2176673
56	138860	19953	118907	2057766
57	138860	18863	119997	1937769
58	138860	17763	121097	1816672
59	138860	16653	122207	1694465
60	138860	15533	123327	1571138
61	138860	14402	124458	1446680
62	138860	13261	125599	1321082
63	138860	12110	126750	1194332
64	138860	10948	127912	1066420
65	138860	9776	129084	937336
66	138860	8592	130268	807068
67	138860	7398	131462	675607
68	138860	6193	132667	542940
69	138860	4977	133883	409057
70	138860	3750	135110	273947
71	138860	2511	136349	137598
72	138860	1261	137598	0

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