Broiler farming is a popular enterprise in India, and the country is now the fifth largest broiler producer in the world. The demand for broiler meat is growing rapidly in India, due to increasing urbanization and change in dietary habits.
There are several factors that have contributed to the growth of broiler farming in India. These include: The availability of high-quality feed at affordable prices. The development of improved breeding techniques. The use of modern farming practices. The availability of government subsidies and support. The demand for chicken meat is also high in Odisha, due to its growing population and increasing affluence. There are many government schemes and initiatives in place to promote broiler poultry farming in Odisha.
The state government provides subsidies to farmers who set up broiler farms, and there are also a number of training programs available to help farmers learn about the best practices for raising broiler chickens. The cost of setting up a broiler farm in Odisha varies depending on the size of the farm and the level of infrastructure required. However, the overall cost is relatively low, making broiler poultry farming a viable option for small-scale farmers.
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 broiler farm of 3000 capacity for ST/SC and general women and degree holder of agriculture and allied sector.& 40% subsidy is available for the male of general category. Maximum subsidy limit is Rupees one crore under MKUY.
Despite the challenges, broiler farming is a viable business option for many farmers in Odisha. With careful planning and management, it can be a profitable and sustainable enterprise.
This project report has been worked out subject to the following conditions:
- The chicks will have to be arranged from commercial hatcheries and price fluctuation in them be correspondingly accommodated in the final sale price.
- Any increase in the cost of feed /chicks shall correlate to the corresponding increase in the sale price of broilers.
3.As a bio-security measure against avian influenza all in all out system will be adopted.
- The scheme is a broad guideline and is likely to vary as per the change in price/cost of various specified items.
- The scheme is workable on the above guidelines if run by the entrepreneur on scientific lines.
Techno economic parameters for 3000 broiler poultry
| Techno-Economic Norms | ||
| Sl.no | PARAMETERS | VALUE |
|
|
Batch size | 3000+5% extra |
|
|
Batch interval | 52 days |
|
|
Mortality of birds | 5% |
|
|
Cycle size | 3000 |
|
|
Cost of day old chick | Rs.35 |
|
|
Cost of kg of feed | Rs.40.00 |
|
|
Cost of equipments( waterers feeders etc.) | Rs.30/bird |
|
|
Cost of insurance medicine vaccine etc. | Rs.6/bird/batch |
|
|
No of batches/year introduced first year | 6 |
|
|
No of batches /year(sold) | 6 |
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|
No of batch introduced 2-7 years | 7 |
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No of batch sold 2-7 years | 7 |
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Cost of kg of live broiler | Rs.103 |
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|
Average wt. of bird at the time of sale | 2.1kg |
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Feed requirement to attain 1.8kg body weight | 3.2kg |
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Rearing period | 45 days |
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Cleaning period | One week |
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Interest rate | 11% |
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Repayment period | 6 years |
ECONOMICS OF BROILER FARMING TO PRODUCE 4000 BROILER POULTRY PER CYCLE
| Capital cost | (Amount in Rs.) |
| Land Development & green fencing LS | 15000 |
| Construction of Brooder cum grower house one Sq.ft/bird for 3000 birds @Rs.350/sq.ft | 1050000 |
| Equipment for 3000 birds @Rs.30/bird | 90000 |
| Electrification & electrical installation | 15000 |
| Office cum store 150sq.ft@500/sq.ft | 75000 |
| Bore well with pump set | 100000 |
| Pipeline | 10000 |
| Overhead tank | 10000 |
| TOTAL CAPITAL COST | 1365000 |
| Working Capital | |
| Cost of chicks 3090@ RS.35/chick (5% extra for mortality 2% free from hatchery ) | 1,08,150 |
| Cost of concentrate feed@3.2kg/bird for 3000 birds @40/kg for first bath | 3,84,000 |
| Misc, expenditure i.e. electricity vaccine medicine including veterinary aid, labour charge @ Rs6/bird for first batch | 18000 |
| Contingency | 14850 |
| Total working capital | 5,25,000 |
| Total project cost | 18,90,000 |
| Margin money 25 % of project cost | 472500 |
| Bank loan 75% | 1417500 |
| CASH FLOW | Project period (year) Amount in Rs. | |||||
| i | ii | iii | iv | v | vi | |
| Cost of day old chicks chicks/year@35/bird | 648900 | 757050 | 757050 | 757050 | 757050 | 757050 |
| Cost of feed for birds @3.2kg/bird Rs.40/kg | 2304000 | 2688000 | 2688000 | 2688000 | 2688000 | 2688000 |
| Misc, expenditure i.e. electricity vaccine medicine . including veterinary aid @Rs6/bird /batch | 108000 | 126000 | 126000 | 126000 | 126000 | 126000 |
| Total expenditure | 3060900 | 3571050 | 3571050 | 3571050 | 3571050 | 3571050 |
| Sale of broiler @ Rs.206/bird (2 kg @ Rs.103/kg) | 37,08,000 | 43,26,000 | 43,26,000 | 43,26,000 | 43,26,000 | 43,26,000 |
| Sale of manure | 9000 | 10500 | 10500 | 10500 | 10500 | 10500 |
| Sale of gunny bags | 12600 | 14700 | 14700 | 14700 | 14700 | 14700 |
| Depreciation on shed and building 10% per year | 450000 | |||||
| Depreciation on equipment @15%/year | 21500 | |||||
| Total | 37,29,600 | 43,51,200 | 43,51,200 | 43,51,200
0 |
43,51,200 | 48,22,700 |
| Gross profit | 6,68,700 | 7,80,150 | 7,80,150 | 7,80,150 | 7,80,150 | 12,51,650 |
| Repayment to bank | 1,70,790 | 3,41,580 | 3,41,580 | 3,41,580 | 3,41,580 | 3,41,580 |
| Net profit | 4,97,910 | 4,38,570 | 4,38,570 | 4,38,570 | 4,38,570 | 9,10,070 |
| Calculation of BCR and IRR | ||||||
| YEAR | 1 | 2 | 3 | 4 | 5 | 6 |
| Capital Costs | 1365000 | |||||
| Recurring Costs | 3060900 | 3571050 | 3571050 | 3571050 | 3571050 | 3571050 |
| Total Costs | 44,25,900 | 3571050 | 3571050 | 3571050 | 3571050 | 3571050 |
| Benefit | 37,29,600 | 43,51,200 | 43,51,200 | 43,51,200
0 |
43,51,200 | 48,22,700 |
| Net Benefit | -6,96,300 | 7,80,150 | 7,80,150 | 7,80,150 | 7,80,150 | 12,51,650 |
| Sl no | Financial indicators | Estimated value | Preferred value |
| 1 | Net Present Worth (NPW) @15% DF | 1872437.07 | Should be +ve |
| 2 | Benefit Cost Ratio(BCR) @15% DF | 1.13:1 | >1 |
| 3 | Internal Rate of return (IRR) | 34.15 | >15% |
| 4 | Debt Service Coverage Ratio (DSCR) | 2.459 | >1.5 |
Loan Repayment plan for 4000 broiler farm:- Repayment of loan will start after grace period of six months. Total loan repayment period is 6 years.
Loan amount is 1417500 +interest of 6 month 77,963=14,95,463
| S.No | Monthly Installment | Interest | Principal | Balance |
| 0 | 1495463 | |||
| 1 | 28465 | 13708 | 14756 | 1480707 |
| 2 | 28465 | 13573 | 14892 | 1465815 |
| 3 | 28465 | 13437 | 15028 | 1450787 |
| 4 | 28465 | 13299 | 15166 | 1435621 |
| 5 | 28465 | 13160 | 15305 | 1420316 |
| 6 | 28465 | 13020 | 15445 | 1404871 |
| 7 | 28465 | 12878 | 15587 | 1389284 |
| 8 | 28465 | 12735 | 15730 | 1373554 |
| 9 | 28465 | 12591 | 15874 | 1357681 |
| 10 | 28465 | 12445 | 16019 | 1341661 |
| 11 | 28465 | 12299 | 16166 | 1325495 |
| 12 | 28465 | 12150 | 16314 | 1309181 |
| 13 | 28465 | 12001 | 16464 | 1292717 |
| 14 | 28465 | 11850 | 16615 | 1276102 |
| 15 | 28465 | 11698 | 16767 | 1259335 |
| 16 | 28465 | 11544 | 16921 | 1242414 |
| 17 | 28465 | 11389 | 17076 | 1225338 |
| 18 | 28465 | 11232 | 17232 | 1208105 |
| 19 | 28465 | 11074 | 17390 | 1190715 |
| 20 | 28465 | 10915 | 17550 | 1173165 |
| 21 | 28465 | 10754 | 17711 | 1155454 |
| 22 | 28465 | 10592 | 17873 | 1137581 |
| 23 | 28465 | 10428 | 18037 | 1119544 |
| 24 | 28465 | 10262 | 18202 | 1101342 |
| 25 | 28465 | 10096 | 18369 | 1082973 |
| 26 | 28465 | 9927 | 18538 | 1064435 |
| 27 | 28465 | 9757 | 18707 | 1045728 |
| 28 | 28465 | 9586 | 18879 | 1026849 |
| 29 | 28465 | 9413 | 19052 | 1007797 |
| 30 | 28465 | 9238 | 19227 | 988570 |
| 31 | 28465 | 9062 | 19403 | 969168 |
| 32 | 28465 | 8884 | 19581 | 949587 |
| 33 | 28465 | 8705 | 19760 | 929827 |
| 34 | 28465 | 8523 | 19941 | 909885 |
| 35 | 28465 | 8341 | 20124 | 889761 |
| 36 | 28465 | 8156 | 20309 | 869453 |
| 37 | 28465 | 7970 | 20495 | 848958 |
| 38 | 28465 | 7782 | 20683 | 828275 |
| 39 | 28465 | 7593 | 20872 | 807403 |
| 40 | 28465 | 7401 | 21064 | 786339 |
| 41 | 28465 | 7208 | 21257 | 765083 |
| 42 | 28465 | 7013 | 21452 | 743631 |
| 43 | 28465 | 6817 | 21648 | 721983 |
| 44 | 28465 | 6618 | 21847 | 700136 |
| 45 | 28465 | 6418 | 22047 | 678090 |
| 46 | 28465 | 6216 | 22249 | 655841 |
| 47 | 28465 | 6012 | 22453 | 633388 |
| 48 | 28465 | 5806 | 22659 | 610729 |
| 49 | 28465 | 5598 | 22866 | 587863 |
| 50 | 28465 | 5389 | 23076 | 564787 |
| 51 | 28465 | 5177 | 23288 | 541499 |
| 52 | 28465 | 4964 | 23501 | 517998 |
| 53 | 28465 | 4748 | 23716 | 494282 |
| 54 | 28465 | 4531 | 23934 | 470348 |
| 55 | 28465 | 4312 | 24153 | 446195 |
| 56 | 28465 | 4090 | 24375 | 421820 |
| 57 | 28465 | 3867 | 24598 | 397222 |
| 58 | 28465 | 3641 | 24824 | 372398 |
| 59 | 28465 | 3414 | 25051 | 347347 |
| 60 | 28465 | 3184 | 25281 | 322066 |
| 61 | 28465 | 2952 | 25512 | 296554 |
| 62 | 28465 | 2718 | 25746 | 270808 |
| 63 | 28465 | 2482 | 25982 | 244825 |
| 64 | 28465 | 2244 | 26221 | 218605 |
| 65 | 28465 | 2004 | 26461 | 192144 |
| 66 | 28465 | 1761 | 26703 | 165440 |
| 67 | 28465 | 1517 | 26948 | 138492 |
| 68 | 28465 | 1270 | 27195 | 111297 |
| 69 | 28465 | 1020 | 27445 | 83852 |
| 70 | 28465 | 769 | 27696 | 56156 |
| 71 | 28465 | 515 | 27950 | 28206 |
| 72 | 28465 | 259 | 28206 | 0 |
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