Introduction to Broiler Farming Project Report For 1000 Birds
Today, we can have the information of Broiler Farming Project Report For 1000 Birds. The project calculation used can be input for Poultry Farming Project Report 5000 Birds, and Poultry Farming Project Report 10000 Birds as well.
Poultry meat is a good source of high-quality proteins, minerals, and vitamins that gives a complete balanced diet for humans. There are specially reared chicken varieties (broilers) are now available with the quality of quick growth and high feed conversion efficiency. As per your farm size, broiler farming can be a good source of income for the family or it can be good subsidiary income and best and profitable employment to farmers throughout the year. Poultry manure has high fertilizer values which can be used for increasing yield of all crops.
The Major advantages of broiler farming are:
- The Initial investment in a broiler farm is less when compared to layer farming.
- The Rearing period of broiler chickens is 5-6 weeks only.
- You can rear many numbers of flocks in the same shed.
- Broiler chickens have a high feed conversion efficient means the amount of feed required for unit body weight gain is lower when compared to other livestock.
- In broiler chicken farming business, there is the fast return from the investment.
- The Demand for broiler meat is high compared to sheep/goat meat.
Scope for broiler farming and its importance:
In India, there is tremendous growth in broiler production during the last three decades and the broiler population in the country is up to 5000 million. At present India is the fifth largest producer of broiler meat in the world with an+ annual production of 2.47 million MT.
The growth of the poultry industry is mainly attributed to the involvement of the corporate sector with an enabling policy environment provided by the Government of India / State Governments from time to time. The government schemes provide huge employment opportunities for the rural poor either under Backyard poultry production system or under small scale commercial broiler farming units. And there more than 5 million people are engaged in the poultry sector either directly or indirectly.
Knowing to the considerable growth in the broiler industry, high-quality chicks, equipment, vaccines and medicines, technically and professionally competent guidance are provided to the farmers. The latest management practice is introduced, disease and mortality incidences are reduced to a great extent by implementing these innovative methods. Even there are many institutions/centers are offering training to entrepreneurs. There is increasing assistance from the Central/ State governments and poultry corporations are approved for creating infrastructure facilities so that new entrepreneurs are attracted to take up this business. Broiler farming has been given special importance in the national policy and has a good scope for further development in the future.
Integration in Broiler Farming
In broiler farming, integration is a growing trend. In the early nineties, contract farming for broilers was introduced and in 1995 it unfolds everywhere Tamil Nadu. Between 1995 and 2000, it spread to Karnataka. It gathered momentum and unfold its wings to Maharashtra, Andhra Pradesh in the years 2001 & 2002 and after that, it gained inroads into West Bengal and Gujarat. The growth is because of in engineered strengths in integration system. Integrators will involve in aspects of production, right from raising of grandparent and parent flocks, production of day-old chicks for rearing, manufacturing, and supply of concentrate feed, providing veterinary services and wholesale marketing of birds. Under integration, all the previous profit centers of the broiler business viz.chick marketing, feed selling, hatching, medicine supply, transportation has become cost centers for the integrators who work as a single entity and distribute the benefits among the farmer, the consumer and the integration company themselves. In the method of contract farming, poultry farmers need to invest only on poultry sheds/equipment on their existing land. The measuring device provides chicks, feed, and medicines provide technical guidance and buy back / purchase the entire production after 5-6 weeks. The contract farmers will be paid the rearing charges sometimes on per kilogram Live Weight basis and conjointly as per the set of criteria prescribed by the integrators viz., FCR, Mortality etc. Farmer is taking advantage of the lesser investment and cost and additionally higher productivity is achieved as a result of integration. Moreover, he/she is insulated from the market value fluctuations. However, the farmer could also be at a drawback if the quantity of batches provided in the year by the measuring device is a smaller amount.
Financial assistance available from Banks for broiler farming
In poultry farming schemes from the government, we should provide Detailed Project Reports (DPR) are required to be prepared. The major investment/finance needed is the construction of broiler sheds and cost of feeding and other equipment, chick cost (day-old chicks), feed, medicine and labor cost for the complete first cycle. And Cost for land development, fencing, water and electricity, essential servant’s quarters, godowns, transport vehicles, broiler dressing, processing, and cold storage facilities are also should be included while providing credit. In case of high-value projects, the borrowers can approach the services of NABARD Consultancy Services (NABCONS) who is having wide experience in preparation of Detailed Project Reports.
Project formulation for a bank loan
- For a boiler project formulation, you can consult a local technical person of State Veterinary / Animal Husbandry Department, Poultry Corporation or private commercial broiler hatcheries. It is the best option to visit the progressive broiler farmers in the area and discuss the profitability and management of a poultry farm. If needed you can go for practical training and experience on a broiler farm which is highly desirable, before starting a broiler farm.
- A broiler farm should include the following information on technical, financial and managerial aspects in detail based on the type of unit and capacity.
- For broiler farm, you need Land and the land should be developed (Location, area, suitability, proximity to the road, site map, etc.), the land is based on proposed capacity/farm size
- The farm needs Civil structures (Sheds, feed mixing unit, dressing unit, godown, / store room, office quarters, staff room etc.)
- You need to list out Equipment and Plant and Machinery – (Feeder, waterer, feed grinder and mixer, deep freezer, dressing equipment etc.)
- You should design a good Housing facility for chicks (Capacity, Type- Deep Litter / Environment controlled, Area required, the system of housing etc.)
- Chicks (Strain, number of birds/batch strength, the source of chicks, vaccination of chicks etc.)
- Feeding (Feeding requirement, the source of feed, type of feed – starter, finisher etc., the price of feed etc.)
- Availability of utilities – Water, power, and fuel
- Veterinary aid and transport arrangements
- Production parameters (Average weight in kgs, Feed conversion ratio- FCR, Mortality etc.)
- Flock Projection chart
- Marketing (marketing of broiler/ meat and other products /by-products – the place of marketing, the basis of payment (kg or no.), price per unit etc.)
- The scope of integration or contract farming
- You need to list out Project capital cost (land, building, plant and machinery etc.) and recurring costs.
- Make Funding pattern (margin contribution, bank loan requirement etc.)
- Techno-economic assumptions.
- Income-expenditure statement
- Make a design of Cash flow, which shows financial indicators (IRR, NPW, BCR, and DSCR)
- Calculate the ratios (DER, ROCE, current ratio, ratio etc.)
- Plan for the Repayment schedule indicating repayment of principal and payment of interest
- Break-even analysis, etc.
- Individual/Partnership /Company / Corporation/ Co-operative Society /Others
- Capability in managing the proposed business
- Experience in proposed activity or others
- Financial soundness
- Technical and other special qualifications
- Technical/ Managerial staff and adequacy thereof
- Name of the financing bank
- Training facilities
- Assistance available from State/ Central Government
- Regulatory clearances, if any etc.
Appraisal of the project
The broiler project should be formulated considering the above-mentioned aspects should be submitted to the nearest branch of the bank for availing credit schemes from the Government for the establishment of the broiler farm. After the submission, the bank will then examine the project for its technical feasibility, financial viability, and bankability.
Sanction of Bank loan and its disbursement
The Bank will sanction the project, ensuring technical feasibility and financial viability. The loan will be released in mostly 2 stages viz., once for the construction of sheds / other civil structures, the purchase of equipment and machinery, recurring cost on the purchase of chicks, feeds, medicines, etc. The usage of the loan amount will be verified and constantly follow up/monitoring is done by the bank.
Lending terms – General
An outlay of the project mainly depends on the local conditions, unit size and the investment components included in the project. Outlay also based upon the Prevailing market prices/cost.
The margin is based upon the category of the borrowers and may range from 10% to 25%.
The Interest rate will be decided by the Banks as per the RBI guidelines. Considering the financial viability and bankability of the project, the rate of interest is approximately upto12. 50% p.a.
Repayment of loan:
The loan repayment period is determined, based on the gross surplus earned in the project. Usually, the repayment period of loan for broiler farming will be from 6 to 8 years.
There is an insurance facility in broiler farming business, birds and other assets (poultry sheds, equipment) can be insured. Wherever necessary Risk/Mortality fund will be considered in lieu of poultry insurance.
Economics of Poultry Broiler Farming/Broiler Farming Project Report For 1000 Birds
Basic economics for broiler farming with a unit size of 1000 birds is given below. The below table shows indicative and the applicable input and output costs and the parameters observed at the field level.
|S.no||Capital Cost||Rs (in Lakhs)|
|1.||Land (if you own a land)||Nil|
|2.||The construction cost of the shed, providing 1,000 sq. ft. floor space required for a batch of 1,000 broilers @ Rs. 200*per sq. ft.||2.0|
|3.||The construction cost of storeroom required for storing feed/equipment 10×10 sq. ft. = 100 sq. ft. (@ Rs 200* per sq. ft.)||0.20|
|4.||The construction cost of office room minimum required space will be 10×10 sq. ft. = 100 sq. ft (@ Rs 250* per sq. ft.)||0.25|
|5.||Cost of Equipment’s for 1000 birds @ Rs 10 per bird||0.10
|1.||Cost of 1000 DOC @ Rs 25* per chick||0.25|
|2.||Feed for 1000 birds @ 2.5 kg per bird = 2500 kgs @ Rs 15* per kg||0.375|
|3.||Misc. expenditure on medicines etc. (labor, sawdust, electricity, water) @ Rs 6 per bird||0.06|
|1.||On the sale of 950 broilers (5% mortality margin) after 35days, each chicken weigh about 1.25 kgs = 1187.50 Kg’s @
Rs. 65*per kg ( it is the Avg. Cost)
|2.||By the sale of empty Gunny bags and manure||0.043|
Economics Analysis for one year:
|S.no||Particulars||Rs. (in Lacs)|
|1.||Gross returns for 1 year from 10 crops = 0.814 x 10||8.14|
|2.||Investment for the purchase of 250 qtls. feed @ Rs 1500* per qtl.||3.74|
|3.||10000 D.O. Cs @ Rs 25* per chick||2.50|
|5.||Net returns per Annum||1.29|
TECHNO-ECONOMICS ANALYSIS WITHOUT LOAN
|S.no||Annual Deductions||Rs (in lacs)|
|1.||Depreciation of building and equipment’s||0.12|
|2.||NET SAVING (Rs 1.29-0.12)||1.17|