Broiler farm project report 10000 birds page 2

Calculation of BCR and IRR
year	1	2	3	4	6	6
Capital Costs	4900000
Recurring Costs	9828000	11466000	11466000	11466000	11466000	11466000
Total Costs	14728000	11466000	11466000	11466000	11466000	11466000
Benefit	12179000	14206000	14206000	14206000	14206000	15117400
Net Benefit	-2549000	2740000	2740000	2740000	2740000	3651400

Sl no	Financial indicators	Estimated value	Preferred value
1	Net Present Worth (NPW) @15% DF	6164375.52	Should be+ve
2	Benefit Cost Ratio(BCR) @15% DF	1.133:1	>1
3	Internal Rate of return (IRR)	49.03%	>15%
4	Debt Service Coverage Ratio	3.2	>1.5

Economics of broiler poultry farming with 10,000 broilers /cycle
CASH FLOW			Project period Amount in Rs.
			i	ii		iii		iv		v		vi
Cost of day old chicks chicks/year@35/bird			2142000	2499000		2499000		2499000		2499000		1802500
Cost of feed for birds @3.5kg/bird Rs.28/kg			7104000	8288000		8288000		8288000		8288000		8288000
Misc, expenditure i.e. electricity vaccine medicine insurance etc. including veterinary aid @Rs5/bird /batch			300000	350000		350000		350000		350000		350000
Total expenditure			9546000	11137000		11137000		11137000		11137000		10440500
INCOME
Sale of broiler @ Rs.186/bird (2kg @ Rs.93/kg)			11160000	13392000		13392000		13392000		13392000		13392000
Sale of manure			30000	35000		35000		35000		35000		35000
Sale of gunny bags			29000	31000		31000		31000		31000		31000
Value of buildings at the end of project period (Depreciation on shed and building etc@10%/year)												1260800
Value of equipments etc. @ the end of project period(Depreciation on equipments @15%/year)												51500
Total			11219000	13458000		13458000		13458000		13458000		14770300
Gross profit			1673000	2321000		2321000		2321000		2321000		4329800
Repayment to bank			494250	988500		988500		988500		988500		988500
Profit before tax			1178750	1332500		1332500		1332500		1332500		3341300
	Calculation of BCR and IRR
		1	2		3		4		5		6
	Capital Costs	3667000
	Recurring Cost	9546000	11137000		11137000		11137000		11137000		10440500
	Total Costs	13213000	11137000		11137000		11137000		11137000		10440500
	Benefit	11219000	13458000		13458000		13458000		13458000		14770300
	Net Benefit	-1994000	2321000		2321000		2321000		2321000		4329800

	1	2	3	4	5	6
Capital Costs	3667000
Recurring Cost	9546000	11137000	11137000	11137000	11137000	10440500
Total Costs	13213000	11137000	11137000	11137000	11137000	10440500
Benefit	11219000	13458000	13458000	13458000	13458000	14770300
Net Benefit	-1994000	2321000	2321000	2321000	2321000	4329800

Sl no	Financial indicators	Estimated value	Preferred value
1	Net Present Worth (NPW) @15% DF	5598953.92	Should be+ve
2	Benefit Cost Ratio(BCR) @15% DF	1.127:1	>1
3	Internal Rate of return (IRR)	35.73	>15%
4	Debt Service Coverage Ratio	2.81	>1.5

Loan Repayment plan for 10000 broiler farm:- Repayment of loan will start after grace period of six months. Total loan repayment period is 6-7 years. Details of monthly installment, interest payment, principal payment and balance is given in repayment schedule for 10000 broiler poultry.

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Broiler farm project report 10000 birds page 2

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