47591747-Poultry-Study.docx

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CONTENT CONTENT 01. 01. EXECUTIVEEXECUTIVE SSUUMMMMAARRYY ii 02. 02. IINNTTRROODDUUCCTTIIOON N 33 02.01

02.01 ProjectProject BackgroundBackground 02.02

02.02 ObjectiveObjective of of StudyStudy 02.03

02.03 Metodo!ogyMetodo!ogy

03.

03. MARKETMARKET AANNAALLYYSSIISS 66 03.01

03.01 Overvie"Overvie" 03.02

03.02 ProductProduct MarketMarket 03.03

03.03 Major Major Con#u$er#Con#u$er# 03.0%

03.0% &e$and&e$and 'eve!'eve! 03.0(

03.0( ProjectedProjected &e$and&e$and 03.0)

03.0) Major Major Su**!ier#Su**!ier# 03.0+

03.0+ 'eve!'eve! of of Su**!ySu**!y 03.0,

03.0, ProjectedProjected Su**!ySu**!y

03.0-03.0- Co$*etitionCo$*etition 03.10

03.10 Pro*o#edPro*o#ed MarketingMarketing StrategyStrategy

04

04.. TECHNICALTECHNICAL ANALYSISANALYSIS 0%.01

0%.01 O*erationa!O*erationa! &etai!#&etai!# andand StructureStructure 0%.02

0%.02 MacineryE/ui*$entMacineryE/ui*$ent e/uire$ent#e/uire$ent# 0%.03

0%.03 ou#ingou#ing 0%.0%

0%.0% a"a" $ateria!#$ateria!# andand #ource##ource# 0%.0(

0%.0( nfra#tructura!nfra#tructura! e/uire$ent#e/uire$ent#

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05.

05. MANAGEMENTMANAGEMENT ANDAND ORGANISATIONORGANISATION

06.

06. INVESTMENTINVESTMENT COSTCOST ANALYSISANALYSIS

07.

07. REVENUEREVENUE PROJECTIONPROJECTION

0.

0. !INANCING!INANCING PLANPLAN

0"

0". . !I!INANANCNCIAIALL PROJECTIONSPROJECTIONS ANDAND APPRAISALAPPRAISAL O!O! COMMERCIALCOMMERCIAL VIA#ILITY

VIA#ILITY

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CHAPTER

CHAPTER T$OT$O

INTRODUCTION INTRODUCTION

Project

Project Background Background

Te

Te !ive#tock!ive#tock #ub4#ector #ub4#ector i#i# anan i$*ortanti$*ortant co$*onentco$*onent of of tete Bot#"anaBot#"ana 5gri 5gricu!tcu!tura!ura! Econo$y.

Econo$y. 5# 5# inin $any$any deve!o*ingdeve!o*ing countrie#countrie# !ive#tock!ive#tock *!ay#*!ay# $any$any ro!e#ro!e# inin tete #ocio4cu!tura!

#ocio4cu!tura! !ive#!ive# of of Bat#"anaBat#"ana inc!udinginc!uding *rovi#ion*rovi#ion of of ca#ca# foodfood draftdraft *o"er *o"er andand a#

a# "e!!"e!! a#a# *overty*overty a!!eviation.a!!eviation. t#t# i$*ortancei$*ortance derive#derive# fro$fro$ tete factfact tattat itit i#i# oneone of of te

te keykey contributor#contributor# toto tete nationa!nationa! econo$y.econo$y. TeTe *ou!try*ou!try indu#tryindu#try  a#

a#

e6*erienced

e6*erienced *eno$ena!*eno$ena! gro"tgro"t inin tete *a#t*a#t 2020 year#.year#. TeTe *ou!try*ou!try indu#tryindu#try *!ay#*!ay# a

a #ignificant#ignificant ro!ero!e inin e$*!oy$ente$*!oy$ent creationcreation andand *overty*overty a!!eviation.a!!eviation. nn 200-200- a!onea!one te

te indu#tryindu#try e$*!oyede$*!oyed over over %(00%(00 *eo*!e*eo*!e co$*aredco$*ared toto 30(030(0 inin 200+,.200+,. Ti#Ti# re*re#ent#

re*re#ent# anan increa#eincrea#e of of %+.(7.%+.(7. TeTe indu#tryindu#try contribute#contribute# #ignificant!y#ignificant!y to"ard#to"ard# *overty

*overty a!!eviationa!!eviation andand foodfood #ecurity#ecurity trougtroug 'ive#tock'ive#tock Manage$entManage$ent andand infra#tructure

infra#tructure Manage$entManage$ent 8'M&98'M&9 andand Cu!tureCu!ture andand :out:out ;rant.;rant.

n

n ter$#ter$# of of #*ecific#*ecific out*utout*ut tete !ive#tock!ive#tock #ub4#ector #ub4#ector cancan bebe brokenbroken intointo *roduct*roduct #ub4grou*#

#ub4grou*# #uc#uc a#a# *ou!try*ou!try $eat$eat goatgoat $eat$eat !a$b$utton!a$b$utton beefbeef *ork*ork $i!k$i!k andand egg#.

egg#.

Tab!e

Tab!e 1<1< E#ti$atedE#ti$ated Out*utOut*ut of of 'ive#tock'ive#tock inin Nigeria<Nigeria< 1--%1--% = = 20002000 8>000

8>000 %&''()*%&''()*

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o"ever

o"ever itit i#i# note"ortynote"orty tattat tete !ive#tock!ive#tock #ector #ector a#a# notnot *rovided*rovided #ufficient#ufficient vo!u$e#

vo!u$e# andand tete ca*acityca*acity toto $eet$eet tete de$andde$and of of tee$ingtee$ing Nigerian#Nigerian# for for *rotein.*rotein. Te

Te annua!annua! gro"tgro"t raterate a#a# beenbeen !o"!o" for for $o#t$o#t of of tete *roduct#*roduct# *articu!ar!y*articu!ar!y for for *ou!try

*ou!try andand egg#egg# #ub4grou*#ub4grou* "erea#"erea# tete #ub4grou*#ub4grou* if if *ro*er!y*ro*er!y $anaged$anaged cou!dcou!d i$*act

i$*act great!ygreat!y onon tete inco$einco$e andand /ua!ity/ua!ity of of !ife!ife of of tete citi?enry.citi?enry. Ti#Ti# i#i# becau#ebecau#e *ou!try

*ou!try *roduction*roduction i#i# aa #ocio4econo$ic#ocio4econo$ic activityactivity tattat a#a# igig ratingrating for for tete rea#onrea#on tat

tat tete netnet returnreturn onon inve#t$entinve#t$ent i#i# re!ative!yre!ative!y iger iger tantan tattat of of oter oter ani$a!ani$a! #*ecie#

#*ecie# andand it#it# contributingcontributing ro!ero!e toto nationa!nationa! econo$yecono$y cannotcannot bebe overe$*a#i?ed.overe$*a#i?ed. Tu#

Tu# itit i#i# tete $ajor $ajor #ource#ource of of igig /ua!ity/ua!ity *rotein*rotein tattat i#i# nece##arynece##ary for for tt e

e

continued

continued #urviva!#urviva! of of tete fa#tfa#t gro"inggro"ing u$anu$an *o*u!ation*o*u!ation of of tete deve!o*ingdeve!o*ing econo$y.

econo$y.

Ba#ed

Ba#ed onon tete foregoingforegoing tete *ro*o#ed*ro*o#ed integratedintegrated *ou!try*ou!try organi#ationorgani#ation intend#intend# toto inve#t

inve#t inin co$*reen#iveco$*reen#ive *ou!try*ou!try far$ingfar$ing "ic"ic entai!#entai!# tete *roduction*roduction of of dayday o!d4o!d4 cick#

cick# egg#egg# broi!er#broi!er# andand !ayer#.!ayer#.

O+

O+,(,(-%-%ii( ( & & S%S%

Te

Te objectiveobjective of of ti#ti# #tudy#tudy i#i# toto undertakeundertake aa detai!eddetai!ed inve#tigationinve#tigation of of tt e

e

tecnica!

tecnica! $arket$arket andand financia!financia! fea#ibi!ityfea#ibi!ity of of tete *roject*roject bearingbearing inin $ind$ind tete #i?e#i?e

Poultry

Poultry facilityfacility FeasibilityFeasibility ₄₄

Source:

Source: CBN CBN Annua Annual l Report Report and and Statement Statement of of Acc Accountsounts (1998-2!(1998-2! P&-% P&-% 1"" 1"" 4 4 1"" 1"" 5 5 1"" 1"" 6 6 1"" 1"" 7 7 1"" 1""   1"" 1"" " " 200 200 200200 20022002 0 0 11 P Poouu!!ttrry y ))3 3 ++3 3 ++% % +) +) +++ + ,,2 2 ,,,, -(-( 1010 E Egggg# # 33+++ + 33--- - %%222 2 %% 33( ( %%33) ) %%((0 0 %%))(( %,+%,+ (1%(1% ;oat ;oat $$eeaat t ,,0 0 ,,, , --2 2 -( -( --) ) 11001 11 100++ 1111%% 12- 12-' 'aa$$bbMMuuttttoon n ,( ,( --% % --) ) 11001 1 10102 2 1100+ + 111133 1111++ 12)12) B Beeeef f 11,,3 13 1--2 12 1--+ 2+ 2000 20 2002 22 200, , 2211(( 22,22, 23- 23-P Poorrk k 22( ( 331 1 33- - %%3 3 %%( ( %%+ + ((00 (((( )2)2 M Mii!!k k --((1 1 --))1 1 --++2 2 --,,- - -- -1-1 100 100 0 0 101 101 103103 10%)10%) 2 2 ,,

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of

of tete targettarget $arket$arket 8*otentia!8*otentia! cu#to$er#9cu#to$er#9 tete e6i#tinge6i#ting co$*etitionco$*etition *roject*roject !ocation

!ocation inve#t$entinve#t$ent co#t#co#t# andand financia!financia! return#return# of of tete *roject.*roject.

M(%&&& M(%&&&

n

n carryingcarrying outout tete #tudy#tudy "e"e ado*tedado*ted tete fo!!o"ingfo!!o"ing $etodo!ogy<$etodo!ogy<

1.

1. 55 fie!dfie!d #urvey#urvey of of tete $arket$arket inc!udinginc!uding *otentia!*otentia! cocon#n#u$eu$er#r#  e6e6i#ti#tinging co$*etition

co$*etition andand $arketing$arketing *ractice#*ractice# of of co$*etitor#.co$*etitor#.

2

2. . CCoo!!!!aattiioonn andand detai!eddetai!ed ana!y#i#ana!y#i# of of datadata #o#o co!!ected@co!!ected@

3

3. . 55****rraaii##aa!! of of tete co$$ercia!co$$ercia! viabi!ityviabi!ity of of tete *roject*roject andand

%

%. . PPrree**aarraattiioonn of of co$*reen#iveco$*reen#ive Aea#ibi!ityAea#ibi!ity e*ort.e*ort.

Ti#

Ti# fea#ibi!ityfea#ibi!ity re*ortre*ort "i!!"i!! tu#tu# *rovide*rovide tete nece##arynece##ary guideguide toto notnot on!yon!y tt e

e

*roject

*roject *ro$oter#*ro$oter# inin eva!uatingeva!uating andand carryingcarrying outout teir teir inve#t$entinve#t$ent *ro*o#a!*ro*o#a! butbut a!#o

a!#o toto tete financier#financier# toto enab!eenab!e te$te$ deter$inedeter$ine tete viabi!ityviabi!ity andand fea#ibi!ityfea#ibi!ity of of tete *roject.

*roject.

Poultry

Poultry facilityfacility FeasibilityFeasibility

5 5

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CHAPTER THREE MARKET ANALYSIS O(i(8

Nigeria "it a *o*u!ation of about 130 $i!!ion i# gro##!y under*rovided "it te e##entia! food co$*onent "ic i# *rotein. Aor e6a$*!e data fro$ te AOS CBN and A5O indicate tat fro$ catt!e !e## tan 2kg of beef i# avai!ab!e to an average Nigerian *er year and ju#t $ere %kg of egg# *er annu$ i# avai!ab!e to eac Nigerian. n fact $i!k *roduction a# been no#e diving or at be#t a #

re$ained con#tant #ince 1--%.Ti# #cenario i# co$*ounded $ore #o "en te vo!u$e of egg #u**!y i# very !o" being 10.()g *er *er#on *er day a# co$*ared "it te u#ua! reco$$endation tat an egg #ou!d be con#u$ed by an adu!t *er day. Ti# reco$$endation "ou!d i$*!y a crate of 30 egg# *e r

$ont. Ti# #tory a!#o o!d# for oter $eat *roduct# inc!uding cicken.

To a$e!iorate ti# *rob!e$ of !o"4!eve! of *rotein intake tere i# te need for concerted effort a$ong te variou# #takeo!der# to bring about te $a##ive

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Poultry facility Feasibility ₆

*roduction of *rotein ba#ed food ite$# at co$*etitive co#t# #o tat tey "ou!d be affordab!e to te genera! $a##e#. 5#ide fro$ te oter nece##ary econo$ic refor$# $a##ive inve#t$ent *ou!try far$ing i# one "ay of re#o!ving te *rob!e$.

at i# *ou!try far$ing Pou!try far$ing i# te co$$ercia! *roduction of *ou!try bird# "ic inc!ude cicken turkey gee#e *igeon guinea and ga$ebird#. Tey are ea#y to *roduce and ave a ig $eat to carca## ratio. ence tey are e6ce!!ent *roduct# for $eeting te *rotein need# of te *o*u!ace.

Cicken con#titute# about -07 of te *ou!try *o*u!ation in Nigeria. Con#e/uent!y *ou!try far$ing i# generica!!y u#ed to refer to cicken far$ing in te country.

P&% P&-%)

Te $ain *roduct# of te *ro*o#ed *roject inc!ude egg# day4o!d cick# and *ou!try $eat "ic "i!! be generated fro$ cu!!ed bird# 8i.e. !ayer# a nd

breeder#9 and broi!er#. Pou!try by4*roduct# #uc a# *ou!try dro**ing# *ou!try offa! and atcery "a#te# "i!! a!#o *rovide additiona! inco$e to te *roject. Pou!try dro**ing can be u#ed a# $anure for vegetab!e gardening and feed ingredient in fi# far$ing.

ndeed a "ee!barro" of fre# *ou!try dro**ing# co#t# bet"een N(0.00 = N,0.00 in #o$e *art# of 'ago# State at te $o$ent. Pou!try offa! and ote r

atcery "a#te# "en grounded are good #u**!y of ca!ciu$ for gro"ing bird#.

ence tey can a!#o be #o!d in teir re4cyc!ed for$#. n brief te *ro*o#e d

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8a9 Main Product#

Poultry facility Feasibility ₇

• &ay4O!d Cick# • Aar$ Egg# • Pou!try Meat

4 Aro$ Cu!!ed bird# 8'ayer# and Breeder#9 4 Broi!er#

8b9 By4*roduct#

• Pou!try dro**ing#

• Pou!try Offa! and oter atcery "a#te#.

PROPOSED CAPACITY

(000 = Bird# *er *roduction cyc!e i# te $ini$u$ econo$ic #i?e to co$$ence a *ou!try far$ a# te o*erationa! and fi6ed co#t# are ju#tifiab!e. Ti# i# even $ore re!evant for a non4auto$ated *ou!try far$. Aor a fu!!y auto$ated and integrated far$ te reco$$ended $ini$u$ econo$ic #i?e i# bet"een ,000 and 10000 bird#.

Te *ro*o#ed *roject "ic i# an auto$ated and integrated *ou!try far$ i# *ro*o#ed to co$$ence "it 10000 to 1(000 bird# *er *roduction cyc!e in te *ou!try #ection and 10000 bird# in te atcery Section. o"ever te out*ut of te far$ i# *ro*o#ed to increa#e to 20000 bird# in te *ou!try #ection and 1(000 day4o!d cick# "itin te fir#t five year# of te *roduction *eriod.

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+< 3 "i!e %07 to )07 i# *ro*o#ed for te atcery #ection.

Poultry facility Feasibility ₈

PROPOSED CAPACITY 9:* O! THE INTEGRATED POULTRY !ARM 9;* P&% S(-%i&' B r o i l e r s 30 % 3 , 0 0 0 - 6,000 B i r d s B 7000 - 14,000 B i r d s Layers 70 % 9+* H;%-( S(-%i&' 4<000= 6<000 Ci->) L;() 40: 3000= 4000 Ci->) B #&i() 60:

CONSUMERS O! POULTRY PRODUCTS

;enera!!y tere are fe" taboo# re!igiou# or cu!tura! *ractice# tat *roibit te u#e of *ou!try *roduct# in u$an diet. ence near!y a!! $e$ber# of te Nigerian *o*u!ace are *otentia! con#u$er# of *ou!try *roduct#.

S*ecifica!!y tere i# #u#tained ig de$and for !ive bird# for o$e con#u$*tion or a# gift# at te ti$e of fe#tiva!# #uc a# Cri#t$a# Ne" :ear Ea#ter d E!4 Aitri d4E! Dabir etc. 5!#o fa#t food o*erator# #uc a# ote!# re#taurant# and #u*er$arket# a!#o ave very ig de$and for *ou!try *roduct#.

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Poultry facility Feasibility ₉

Egg in it# o"n ca#e a# a "ide variety of uti!i#ation. Tu# it i# u#ed in t e

*re*aration of *roduct# #uc a# cicken burger #cotc egg##a!ad and egg #ou* a$ong oter#. 5*art fro$ o$e con#u$*tion egg# can be u#ed a# !eavening agent in baked food# and a# an ingredient in te $anufacture of air #a$*oo and for te *roduction of egg *o"der tat can !ater be incor*orated into baby food.

Pou!try far$er# e#*ecia!!y te one# #*ecia!i?ing in broi!er and !ayer *roduction are te *otentia! con#u$er# of te day4o!d cick# *roduced by te atcery #ection. Point of !ay for egg *roduction invo!ve# te rai#ing of te *u!!et cick# fro$ 0 = 1, "eek#. Suc cick# $u#t be obtained fro$ re*utab!e atcerie#.

Ni(i;?) P&% M;>(%

i!e #o$e countrie# are re*uted to be i$*ortant e6*orter# of *ou!try *roduct# after con#i#tent!y $eeting !oca! de$and Nigeria# $ain *rob!e$ i# $eeting it# !oca! de$and for *ou!try *roduct#. Nigeria# *ou!try $arket *rob!e$# #tart in 1-,% "en te Aedera! ;overn$ent banned i$*ortation of $ai?e. Ti# indeed contributed to #teadi!y dec!ining *ou!try *roduction in addition to te effect# of te #tructura! adju#t$ent *rogra$$e.

But te Nigerian *ou!try $arket ad #een $ore *ro#*erou# ti$e# for te t"o decade# after inde*endence in 1-)0@ *ou!try *roduction gre" #ub#tantia!!y *eaking in 1-,2 "it %0 $i!!ion co$$ercia!!y reared bird#. Since ten te bird *o*u!ation a# di**ed #teadi!y to an e#ti$ated !o" of ) $i!!ion in 1--+. Te ne" *o!itica! di#*en#ation a# brougt about a !itt!e i$*rove$ent to *ou!try far$ing. ence te *ou!try *o*u!ation increa#ed to 20 $i!!ion in 2003.

CURRENT SOURCES O! SUPPLY

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#ector "ic i# $ade u* of far$er# "it #$a!!o!ding# of (04+00 bird# ca*acity.

Poultry facility Feasibility ₁₀

o"ever tere are #o$e big #u**!ier# e#*ecia!!y in te #outern *ar t# of te

country. Suc #u**!ier# inc!ude<

1. 5$o Aar$ Sander# atcery 'td.

2. 5ni$a! Care Service# Don#u!t 8Nig.9 'td. 3. Cee4Fay Aar$#

%. ar$ony Project# 'td. (. Mayfie!d Aar$# 'td.

). Oba#anjo Aar$# 8Nig.9 'td. +. ic$ond Aood# Nigeria 'td.

,. Sa$ro#e 5gro4ndu#tria! Co$*any 'i$ited -. Tun# Aar$ Nigeria 'td.

10. G.O.O. 5gricu!tura! ndu#trie#

11. G5C Aood# 8ntegrated Pou!try Aar$ing9

12. Hartec 'i$ited.

13. 5bio!a Aar$# 'i$ited

LEVEL O! SUPPLY

n te cour#e of our #urvey "e ob#erved tat *roduction figure# for *ou!try

are not *ro*er!y $aintained by govern$ent agencie# tat are carged "it te

re#*on#ibi!ity. ence "e ca$e acro## varietie# of *roduction fig ure# fro$

different #ource#. o"ever "e are ab!e to co$e out "it an e#ti$ate d #u**!y

!eve! by conducting a $ini #urvey and a!igning te re#u!t# "it data fro$ re!iab!e

#ource# #uc a# te Aedera! Office of Stati#tic# 8AOS9 Centra! Bank of Nigerian

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On te ba#i# of te foregoing $etodo!ogy "e are ab!e to e#ti$ate t e #u**!y !eve! o f *ou!try *roduct # in te country a# fo!!o"#<

(0 $i!!ion bird# *er annu$ )0 $i!!ion egg# *er annu$ )0 day o!d cick# I

Poultry facility Feasibility

11

Con#idering infra#tructura! con#traint# and oter !i$iting factor# "e $ay e#ti$ate te *rojected !eve! of #u**!y of *ou!try *roduct# to increa#e by (7. ence te *rojected !eve! of #u**!y fro$ 20034200, i# *rovided ereunder<

E)%i@;%( D(@;' & P&%

Tere are very fe" taboo# *roibiting te con#u$*tion of *ou!try *roduct# in Nigeria.

ence near!y a!! te 12- $i!!ion Nigerian are con#u$er# of *ou!try *roduct# in 2003 2004 2005 2006 2007 200 Cicken (0 (2.( ().13 (+.,, )0.+, )3..,1 Egg# )0 )3 )).1( )-.%) +2.-3 +).(, &ay4o!d Cick# )0 )3 )).1( )-.%) +2.-3 +).(, 9Mii&'*

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one for$ or te oter.

n ter$# of te ou#eo!d *o*u!ation Nigeria *re#ent!y a# about 22 $i!!ion ou#eo!d#. 5##u$ing tat eac ou #eo!d con#u$e# 20 cicken# *er an nu$

"ic inc!ude te one# con#u$ed during te $ajor fe#tive *eriod# #uc a# Cri#t$a# Ne" :ear and Ea#ter for Cri#tian@ de! Ma!ud de! Dabir for Mu#!i$# and during te birtday ce!ebration of $e$ber# of te ou#eo!d or during any #*ecia! occa#ion te#e a##u$*tion# bring te e#ti$ated *ou!try con#u$*tion to about %%0 $i!!ion# cicken# con#u$ed by te ou#eo!d#.

t #ou!d o"ever be noted tat te ou#eo!d# are not te on!y con#u$er# of cicken and *ou!try *roduct#. Te oter con#u$er# inc!ude Aa#t Aoo d

12 Co$*anie# ote!# and oter food *roce##ing co$*anie#. 'et u# con#ervative!y

a##u$e tat de$and fro$ te#e grou*# i# about )0 $i!!ion cicken# *er annu$. Ti# bring# te tota! e#ti$ate de$and for *ou!try cicken to (00 $i!!ion *er annu$. f "e furter a##u$ed tat ti# de$and increa#e by 2.007 *er annu$ te *rojected de$and for cicken i# a# fo!!o"#<

COMPETITION

Co$*etition i# not #o keen in Nigeria># *ou!try $arket#. Te rea#on# for 2004 2005 2006 2007 2006

(00 (10 (20.2 (30.)0 (%1.( 9@ii&'9

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ti# i# obviou#<

1. Pou!try *roduct# in teir *re#ent for$# are not branded *roduct#. ence "at i# e##entia! in ti# re#*ect i# te effective *o#itioning of

te di#tributi

on ou t!et# at te

a**ro *riate ti$e#.

2.

5# a re#u!t o

f te #ub#tantia! #ortfa!! in #u**!y Nigeria# *ou!try $arket i# a #e!!er# $arket.

3. 'arge *ro*ortion# of te *roduction are being #o!d troug infor$a! canne!#. o"ever #o$e degree# of co$*etition e6i#t bet"een te !oca!!y *roduced *ou!try *roduct# and te i$*orted one#. 5 #trong indication of ti# i# te *eno$ena! ri#e of *ou!try *roduct# #i**ed in container# fro$ te Gnited State# to Nigeria bet"een 1--( and 1---8#ee cart be!o"9

13

POULTRYPRODUCTS IMPORTED!ROMUNITED STATES91""7==1"""*

Pou!try 8TEG#9 Egg#JMi!k 8TEG#9

1, , -% ) C ; 4 7 & 9 T E U ) *

(16)

Source: PIERS, Journal of Commerce, New York

To reduce te $a##ive i$*ortation of fro?en *ou!try *roduct# and to #ti$u!ate !oca! *roduction te Aedera! ;overn$ent *!aced e$bargo on te i$*ortation of *ou!try *roduct# in year 2002.

COMPETITORS MARKETING ANALYSIS

5# $entioned ear!ier te di#tribution cain in Nigeria# *ou!try indu#try tend# to be #ort "it $ore tan ,07 of tota! *roduction de!ivered direct!y to te infor$a! trade #ector. Te re$aining 207 i# nor$a!!y di#tributed troug a !onger cain of te for$a! #ector.

n ti# "i#e te $arketing *ractice# of te o*erator# in te $arket can b e

con#idered under te eading# of /ua!ity of #ervice *ro$otion and *ricing.

8a9 n te area of di#tribution *ou!try far$er# #e!! direct!y to o*erator# in te infor$a! #ector.

Te#e inc!ude

• Butcer#

Poultry facility Feasibility ₁₄

• e#taurant# • Boarding ote!# • S$a!! retai! #tore# • a"ker#

• 'ive cicken $arket# • S*ent = en de*ot# • ndividua! con#u$er# • ote!#

o"ever a fe" big o*erator# #e!! teir far$ *roduct# direct!y to o*erator# in te

33

Y(;4

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for$a! $arket. Me$ber# of ti# grou* inc!ude

• Big retai! out!et# • o!e#a!er# • Aranci#e #tore#

• Broi!er *roce##ing *!ant# • Egg *roce##ing *!ant# • E6*orter# 8Occa#iona!!y9

(b) Pi-i'< Pricing in te infor$a! #ector of te indu#try i# re!ative!y #tab!e. o"ever *rice deter$ination great!y de*end# on te grade of t e

*roduct#. n te ca#e of egg# tey are c!a##ified to te fo!!o"ing tree grade#.

• ;rade 1 • ;rade 2 • Gnder grade

PROPOSED MARKETING STRATEGIES

Te *ro*o#ed integrated far$ "i!! #trive to *roduce ige#t *o##ib!e /ua!ity of te variou# *roduct#. Te *ro*o#ed far$ "i!! e6*!ore te fo!!o"ing #trategie#<

Poultry facility Feasibility ₁₅

1. SUPPLY TO MAJOR HOTELS< RESTAURANTS AND CATERING OUTLETS

Tere are $any touri#t initiative# and deve!o*$ent# in te citie# tat need to be catered for. Gnfortunate!y at te $o$ent tey are under = #erviced and #ti!! de*end on te traditiona! di#tribution canne!#. Te *ro*o#ed far$ "i!! ai$ at $eeting te need# of te out!et# initia!!y in 'ago# and #ub#e/uent!y oter *art# of te country.

(18)

2. SUPPLY TO HA$KERS

'ive cicken# or egg "i!! be #o!d regi#tered to a"ker# on a regu!ar ba#i#. 5# $o#t retai!er# ave tran#*ort *rob!e$# te far$ cou!d entice te$ b

y

de!ivering te cicken# or egg# at teir out!et#

CONTRACTING

Te far$ $ay enter into a contract "it $ediu$ or !arge4#ca!e broi!er u#er# to #u**!y #ti*u!ated nu$ber of cicken# or egg# at #*ecified *eriod#. Ti# "i!! o*efu!!y *rovide a #teady $arket for te far$

SUPPLY TO TO$NSHIP COLD STORAGE DISTRI#UTORS

So$e co!d #torage out!et# ave *o#itioned te$#e!ve# very "e!! in te to"n to #e!! fro?en food and $eat *roduct#. Te far$ "i!! endeavor to #u**!y te#e di#tribution center#.

(19)

CHAPTER !OUR

%.1 OPERATIONAL DETAILS AND STRUCTURE

Te *ro*o#ed *roject "ic i# to be #ited in te 'ago# urban *eri*ery "i!! be a fu!!y auto$ated and integrated *ou!try *roduction far$ "ic "i!! be $ade u* of te fo!!o"ing unit#.

• atcery Gnit

• Broi!er gro"4out faci!ity

• 'ayerbreeder gro"4out faci!ity • Tab!e egg# *roduction unit

• Broi!ercu!!ed bird# *roce##ing *!ant

4.11 H;%-( U'i%

Ti# i# te unit "ere ferti!e egg# "i!! be incubated to *roduce &ay4O!d Cick# 8&OC9. Te *ro*o#ed atcery Gnit i# e6*ected to ave a brooding ca*acity of

Poultry facility Feasibility ₁₇

10000 ferti!e egg# *er *roduction cyc!e and "i!! be $ade u* in te *ro*ortion of )07 broi!er# and %07 breeder#. Te atcery *roduction !ine "i!! inc!ude<

a9 5 Setter ncubator b9 5 atcer# ncubator

T( B&-())  &8 & %( B&B&)( ;%-( i) ;) &&8)

(20)

ncubator

&ay4O!d Cick# 8&OC9

4.12 #&i( G&8=&% !;-ii%

atcer#

ncubator Cand!ing_oo$

Broi!er *roduction invo!ve# te rai#ing of day4o!d cick# 8&OC9 fro$ 0 = (0 day#. Te breed of #uc cick# #ou!d be #uc tat a# "it e6ce!!ent $eat to carca## ratio.

Te *ro*o#ed broi!er *roduction ca*acity i# *ro*o#ed to be bet"een 3000 4)000 bird# *er cyc!e.

Tere are #o$e e##entia! re/uire$ent# for gro"ing broi!er# #ucce##fu!!y. 5!! te#e re/uire$ent# "i!! be *ut in *!ace before te *ro*o#ed *roject co$$ence#.

Te re/uire$ent# inc!ude<

• 5de/uate ou#ing

• E6ce!!ent brooding e/ui*$ent • Aeeding e/ui*$ent

• Te $odern "atering e/ui*$ent • Mi#ce!!aneou# e/ui*$ent#

5!! te#e "i!! be di#cu##ed under faci!ity re/uire$ent#.

Poultry facility Feasibility ₁₈

4.13 #((()L;() G&8 &% !;-ii%

Te breeder#!ayer# *roduction oter"i#e kno"n a# *oint of !ay *roduction invo!ve# te rai#ing of *u!!et cick# fro$ 0 = 1, "eek#. Te *oint of !ay bird# are u#ed for *roducing ferti!e egg# in te *roce## of *roducing re*!ace$ent #tock# or inferti!e egg# in te *roce## of *roducing ordinary tab!e egg#.

Te *ro*o#ed far$ i# e6*ected to *roduce bet"een +000 and 1%000 breeder# *er *roduction cyc!e

(21)

Te ba#ic re/uire$ent# for a ty*ica! breeder gro" out faci!ity are #i$i!ar to tat of broi!er gro" out faci!ity.

4.14 T;+( E P&-%i&' U'i%

Ti# invo!ve# te rearing of bird# to #e6ua! $aturity and ten kee*ing te$ in !ay for a year. Te egg# *roduced are inferti!e and are ca!!ed tab!e egg#. n Nigeria #o$e *roducer# begin teir *roduction *roce## by rai#ing te day = o!d *u!!et# "i!e oter buy *oint = of = !ay *u!!et# 8e.g. 20 to 22 "eek o!d *u!!et#9 tat are ready to begin *roduction.

Te *ro*o#ed *roject "ou!d de*end on it# day4o!d *u!!et# for egg *roduction.

Since an average !ayer *roduce# 2 egg# every 3 day# te tab!e egg *roduction ca*acity of te far$ "i!! de*end on te nu$ber of !ayer# de*!oyed in te far$.

4.3 EFUIPMENTMACHINERY REFUIREMENT

19 Te *ro*o#ed integrated far$ i# e6*ected to be fu!!y auto$ated "it $odern *ou!try e/ui*$ent and $acinery. Te e/ui*$ent$acinery re/uire$ent# "i!! inc!ude. ;*. H;%-( U'i% • Setter ncubator • atcer# ncubator • Au$igation E/ui*$ent • Cand!ing 'a$b +* #&i(< L;( ;' #((( U'i%

(22)

• Brooding E/ui*$ent • Aeeding E/ui*$ent • atering E/ui*$ent • Ter$o$eter • &e4beaking #ci##or# S(%%( I'-+;%&

Te #etter incubator "ou!d ave a $ini$u$ ca*acity of 40<000 Egg#. T e

di$en#ion of a ty*ica! one ICi-> M;)%( 102K i# 22?('%12.6? idt and .7?H(i%

H;%-(

Te atcery tat "i!! be uti!i?ed "i!! ave a $ini$u$ of 30<000 &ay 4o!d Cick# *er atcing cyc!e

Di'>i' ))%(@)

20 5n auto$atic "ater troug or drinking ni**!e #y#te$ *!aced in#ide or *referab!y

out#ide te #ed "i!! #ave !abour and *rovide a con#tant #u**!y of fre# "ater. t i# i$*ortant to *rovide #ade in te ot #ea#on to kee* te "ater coo!.

5 !o"4*re##ure drinking #y#te$ i# idea! for adu!t bird#. Te "ater f!o"# troug te ni**!e# on!y "en tey are touced or *ecked. Pou!try /uick!y !earn o" to o*erate te #y#te$. &rinking ni**!e# are $ore ygienic and u#e !e## "ater tan o*en troug#.

(23)

n deciding "ic feeder #ou!d be u#ed it i$*ortant to *ut into con#ideration te ty*e and te c!a## of cicken tat i# being reared.

Ba#ica!!y tere #ou!d be Aeeder for Pu!!et#

Aeeder for Cockere!#

Aeeder for &ay =O!d Cick# 8&OC9

One anging >tube feeder "it a *an %00 $$ in dia$eter "i!! *rovide about 1200 $$ of feeding #*ace enoug for 1( en#.

Bu!k# feed #torage are a!#o a nece##ary *art of te feeding e/ui*$ent. Te bin# 8Si!o#9 are !ocated out#ide te ou#e.

#&i( P&-())i' P;'%

5 #et of *ou!try #!augtering and broi!er *roce##ing tat a# te ca*acity to *ackage 5000 broi!er# *er day "i!! be *ut in *!ace.

O%( SBB&% EiB@('%)

Oter #u**ort e/ui*$ent# inc!ude<

Poultry facility Feasibility ₂₁

• E!ectric ;enerator =Preferab!y 2(0 DL • Egg 'ifter

• &ebeaker# • Ter$o$eter

• Co!droo$ "it te ca*acity to #tore about 20000 *roce##ed cicken.

4.4 HOUSING

(24)

i# becau#e broi!er!ayer *roduction i# e##entia!!y a cick brooding o*eration. ence te ou#e #ou!d contain nece##ary e/ui*$ent #o tat #uc factor# a# te$*erature $oi#ture air /ua!ity and !igt can be contro!!ed ea#i!y. t #ou!d a!#o *rovide for efficient in#ta!!ation and o*eration of brooding feeding "atering and oter e/ui*$ent.

5 *ou!try bui!ding #ou!d ave te fo!!o"ing genera! feature#<

 E6ce!!ent venti!ation air $ove$ent and #ufficient !igting.

 O*ti$a! u#e of f!oor #*ace.

 Sou!d contain a!! nece##ary e/ui*$ent #uc a# brooding feeding "atering and oter e/ui*$ent for efficient o*eration.

 Te ou#e #ou!d be #ited on a "e!! drained #oi!.

 A!oor of te *ou!try ou#e# $u#t be concreted and !ittered.

Tree ty*e# of ou#e# are uti!i#ed in te co$$ercia! *roduction of broi!er !ayer and breeder. Tu# bird# are tran#ferred to te variou# ou#e# de*ending on teir age in te *roduction cyc!e. Te#e ou#e# inc!ude<

Poultry facility Feasibility ₂₂

¬ Brooder ou#e ¬ ;ro"er# ou#e ¬ &ee* 'itter ou#e ¬ Cage.

#&&( H&)(

Ti# i# te ou#e "ere a day4o!d cick #tay# unti! te fir#t , "eek# of te cick# !ife. Brooder ou#e $u#t be $aintained *ro*er!y and ke*t "ar$ a!"ay#.

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n#ta!!ation of brooder# guard# to confine cick# f!at feeder# drinker# and feed $a# $u#t a!"ay# be avai!ab!e.

G&8( H&)(

5fter te fir#t , "eek# cick# are tran#ferred to te gro"er ou#e. Te *ur*o#e# of ti# tran#ference are to *rotect te$ and $ake te$ co$fortab!e #o tat tey can deve!o* o*ti$a!!y. 5 "e!! venti!ated ou#ing acco$$odation "i!! #uit te gro"er# "it enoug f!oor #*ace for te nu$ber of gro"er# invo!ved.Te reco$$ended f!oor #*ace for a f!ock of 2(0 bird# i# 12( #/uare $etre#.

D((B Li%%( H&)(

Te bird# are tran#ferred to te dee* !itter ou#e after 20 "eek# in te gro"er# ou#e. n ca#e of broi!er *roduction ti# i# "ere te bird# "i!! do$ici!ed unti! tey reac te $arket "eigt of about 1.)kg in 3 4% $ont#.

C;(

Poultry facility Feasibility ₂₃

Ti# i# te fina! de#tination of !ayer# and breeder#. No !itter i# re/uired. Cage# are nor$a!!y *ut under te roofed ou#e. Te u#ua! nu$ber of bird# re/uired in a ce!! i# 3 *u!!et# or 2 !ayer#.

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!i( 1. M&(' +&i( &)(< 8i- )() %8& (( +i').

ou#e# #ou!d be ca*ab!e of $aintaining a**ro*riate te$*erature# during te entire gro"ing cyc!e regard!e## of te out#ide te$*erature. Co!der c!i$ate# re/uire additiona! in#u!ation "erea# *ro*er air #*eed beco$e# crucia! in a ot environ$ent. Mo#t broi!er ou#e# are bui!t %0 feet "ide u#ua!!y "it t"o !ine# of !igting fi6ture# arranged #o tat a!! area# of te f!oor are "e!! !it. 'o"4"attage bu!b# are *!ace , to 10 feet above te f!oor to *rovide 0.( to 1.0 foot cand!e o f

!igt at bird !eve!.

4.5 UTILITIES REFUIREMENT AND SUPPLY

5 nu$ber of uti!itie# "ou!d be *ut in *!ace in order to en#ure #$oot functioning of te far$. Te#e uti!itie# inc!ude<

a9 ater Su**!y

b9 Su**!e$entary E!ectricity #u**!y

Poultry facility Feasibility ₂₄

c9 Paved oad Tran#*ortation d9 &rainage Aaci!ity

$;%( SBB

C!ean "ater #u**!y i# a #ine /ua non of *ou!try bu#ine##. ence tere #ou!d be *rovi#ion for an a!ternative #ource of "ater #ince con#tant and c!ean "ater #u**!y can on!y be en#ured troug *rovi#ion of an interna! boreo!e and a $ini$u$ of one overead "ater tank of (000 !itre# ca*acity.

(27)

E(-%i-i% SBB

Since *ub!ic *o"er #u**!y i# not re!iab!e *rovi#ion "i!! be $ade for a 2(0 DL5 generating #et to #u**!e$ent Nationa! E!ectric Po"er 5utority #u**!y and en#ure uninterru*ted #u**!y of e!ectricity.

4.6 RA$ MATERIAL REFUIREMENT

Te ba#ic ra" $ateria!# of a ty*ica! Pou!try far$ inc!ude

• Aeed# • &rug# • Laccine#

!(()

Te ty*e# of food bird# feed on varie# a# tey gro" and te#e inc!ud e<

Ci->)@;)< "ic i# u#ed for feeding cick# fro$ a I day o!dK to , "eek# o!d@ G&8(@;)  "ic i# u#ed for feeding cick# fro$ , "eek# to 20 "eek# o!d@ L;(@;) < "ic i# u#ed fro$ 20 "eek# u*"ard# .

#&i( S%;%(@;) i# u#ed for feeding day o!d broi!er cick# "i!e #&i( !i'i)(@;) i# u#ed fro$ "eek % u*"ard#.

25 Te bu!k of ti# feed "i!! be #ourced !oca!!y fro$ bu!k i$*orter# and !oc a!

$anufacturer# of !ive#tock feed. n te neare#t future te far$ "i!! e6*!ore te *o##ibi!itie# of *roducing it# o"n feed.

D)

So$e *ou!try drug# co$$on!y u#ed in te *ou!try far$# are<

(28)

() &@;< M;;%i&' i')(-%i-i(< V(%& 5 i')(-%i-i(.

V;--i'()

So$e *o*u!ar vaccine# inc!ude< N(8-;)%( i)(;)( ;--i'(< C&--i;'%) V;--i'()< G@+&& V;--i'(< K&@&& V;--i'(< P& ;--i'( ;' A'%= C.R.D V;--i'(

5bout -07 of te#e in*ut# are i$*orted. Te#e i# "y *ou!try *roduction i# ig!y #en#itive to foreign e6cange f!uctuation n Nigeria

CHAPTER !IVE

MANPO$ER REFUIREMENT< MANAGEMENT AND ORGANISATION

MANAGEMENT

26 Aor te #ucce##fu! o*eration of te integrated far$ te $anage$ent #ou!d ave ade/uate and a**ro*riate kno"!edge in #*ecific feature# of *ou!try far$ing. Te#e i$*ortant area# inc!ude<

¬ &i#ea#e# contro!

¬ ou#ing and e/ui*$ent  ¬ Aeeding

(29)

¬ Marketing

Con#e/uent u*on te $ediu$ #i?e of te far$ te $anage$ent #tructure "i!! not be too e!aborate. Since a *ro$oter "i!! finance te far$ te co$*o#ition of a board of director# $ay not be nece##ary a!toug it i# advi#ab!e tat ti# be *ut in *!ace. Te overa!! $anage$ent function# "ic "i!! inc!ude broad *o!icy for$u!ation a**rova! of budget# and #trategic *!an# "i!! fa!! on te *ro$oter "o "i!! a!#o function a# te Managing &irector and Cief E6ecutive Officer of te far$ a!toug a !ot of a##i#tance and va!ue can be derived fro$ te con#titution of a board of &irector#.

PERSONNEL REFUIREMENT

Co$$ercia! *ou!try *roduction invo!ve# te rearing of e6otic breed of cicken tat are ig!y #en#itive to environ$enta! cange# feeding *attern and di#ea#e#. ence it# $anage$ent re/uire# ig!y #ki!!ed and e6*erienced *er#onne!.

Te far$ "i!! to be a fu!!y auto$ated and integrated far$. ence tere "ou!d not be need for too $any #taff. n ti# "i#e te far$ "i!! re/uire te fo!!o"in g

*er#onne!<

Poultry facility Feasibility ₂₇

T( M;';i' Di(-%& 819

Te *ro$oter "i!! a##u$e te overa!! #u*ervi#ory re#*on#ibi!itie# a# t e

Managing &irector carrying out 8it te a##i#tance of te key *er#onne!9 te function of te #trategic *o!icy for$u!ation. eSe "i!! dra" $ont!y #a!ary and a!!o"ance for *erfor$ing ti# function.

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!;@ H;') 829 o!der# of Senior Scoo! Certificate

S(-i% M(' 829 e!evant guard# training

Di(9)* 829 o!der# of Nigerian *rofe##iona! driving !icen#e

ESTIMATED PERSONNEL COSTS

Te tota! e#ti$ated annua! #a!ary and a!!o"ance for te #i6 #taff and t e

Managing &irector i# N )00000.00. f it i# a##u$ed tat te #a!ary "ou!d increa#e by 107 *er annu$ ten te #a!ary for te ne6t ( year# i# a# fo!!o"#<

• N 600<000.00========Y(; 1 • N 660<000.00========Y(; 2 • N 726<000.00========Y(; 3 • N 7"<600.00========Y(; 4 • N 7<460.00========Y(; 5 ORGANISATION STRUCTURE

28 nitia!!y te far$ "i!! $aintain a !ean #tructure in te fir#t five year# of i t#

o*eration during "ic it "ou!d enjoy fu!! auto$ation and te #ervice# of #i6 #taff. o"ever a# te far$ e6*and# in te neare#t future it "i!! be i$*erative to *ut in *!ace a very good #tructure. ence te fo!!o"ing #tructure i#

(31)

reco$$ended.

Te far$ "i!! be #tructured into four broad de*art$ent#. Te ead# of te#e de*art$ent# "i!! re*ort to te ;enera! Manager "o "i!! #erve a# te overa!! Aar$ Manager of te integrated far$. e "i!! re*ort to te Cair$an  Managing &irector.

atcery Manager "o "i!! #u*ervi#e te atcery o*eration# of te far$ "i!! ead te atcery unit.

Te Ainance and 5d$ini#tration &e*art$ent "i!! be eaded by Ainance J

5d$ini#tration Manager and "i!! #u*ervi#e a!! ad$ini#tration account# and *er#onne! $atter#.

Te 'ive#tock# &e*art$ent "i!! be eaded by 'ive#tock Manager "o "i!! #u*ervi#e te broi!er !ayer#  breeder and egg *roduction o*eration# of te far$.

Te Bu#ine## &eve!o*$ent Manager "i!! ead te Marketing and #a!e #

&e*art$ent. e "i!! be re#*on#ib!e for i$*!e$enting $arketing and #a!e# #trategie# of te far$.

PROPOSED ORGANISATION STRUCTURE

Cair$anCEO

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;ener a! Man ager Manager Bu#ine## &eve!o*$ent Manager Aeed $an

Leterinary 5##i#tant atcery 5##i#tant# 5d$in C!erk#

Poultry facility Feasibility ₃₀

CHAPTER 6

INVESTMENT COST ANALYSIS

'ive#tock Manager atcery Manager

nance $ n

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Te co#t of te *roject are e#ti$ated under t"o $ain eading# vi?< C;Bi%;i'i%i; -&)% ;' &B(;%i'@;i'%(';'-( -&)%).

1.0 C;Bi%;i'i%i; C&)%

Ba#ed on te e#ti$ate# gatered during te $arket #urvey a# "e!! a# internet #earce# te *rinci*a! co#t co$*onent of te *roject are 1!andbui!ding J nfra#tructure 2 P!ant J Macinery 3 office furniture % de!ivery veic!e# and ( te *re4o*erationa! e6*en#e#. Te#e are #u$$ari?ed be!o"<

C&')%-%i&' )())%&( &&@)

'and ac/ui#ition (000000 Broi!ergro"er #ed 1000000 atcery #ed 1000000 'ayer Sed 1000000 Store roo$ ,(0000 Aencing 2000000 S+=T&%; 10<50<000 1.2. M;-i'()EiB@('%

5uto$ated atering Sy#te$ )(00000 5uto$ated feeding #y#te$ 12000000

5uto$ated $anure re$ova! 2+(0000

ncubation and atcery e/ui*$ent 1(000000 ;enerator 81 no#. +( DL59 2(00000 Office E/ui*$ent 8#ee detai!#9 3000000

ater bore o!e e/ui*$ent 1000000

S+=T&%; 42<750<000

Poultry facility Feasibility ₃₁

1.3 D(i( V(i-()

a9 Sa!oon Car 81 no.9 2-00000

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S+=T&%; 5<650<000

1.4 !'i%(  !i%%i')

a9 Aurniture 8#ee detai!#9 1200000

b9 5ir conditioner# 81 no.9 1(0000

c9 Te!e*one n#ta!!ation ,(000

S+=T&%; 1<435<000

1.5 P(=OB(;%i' EB(')()

a9 Co$*any ncor*oration J 'ega! Aee# 4 (00000

b9 Aea#ibi!ity Study 4 %(0000

9 Trave! E6*en#e# 4 1(0000

9 5ccounting Sy#te$# Manua! 4 (00000 j9 Per#onne!5d$in Po!icie# Manua! 4 (00000

k9 Staff ecruit$ent 4 )(0000

9 Sundry E6*en#e# 4 2(0000

S+=T&%; 3<000<000

1.6 R;8 M;%(i; I'B%)

a9 &ay o!d Broi!er# 81(00 no9 4 1)( 000 b9 &ay o!d 'ayer# 83(00 no9 4 3,(000

c9 Aeed #tock 4 10000000

d9 Laccine# S*ray 'itter J con#u$ab!e# 4 1(0000

S+=T&%; 10<400<000

Te tran#fer *rice of day o!d cick# i# *ut at N110 *er &OC.

32 1.7 $&>i' C;Bi%;

Te "orking ca*ita! i# a #u$ tat #ou!d be avai!ab!e to te bu#ine##. Te

(35)

"orking ca*ita! for te fir#t year of o*eration of te Pou!try i# e#ti$ated on te ba#i# of te o*erating e6*en#e#.

2.0 OPERATING AND MAINTENANCE COSTS

Te o*erating and $aintenance co#t# are e#ti$ated on te ba#i# of a##u$*tion# of u#age rate# for uti!itie# = "ater !igt fue!!ing and #undry e6*en#e# on a dai!y ba#i#. Te tota! i# e#ti$ated at N3(0 000 for t"o $ont#. Ti# i# $uc in !ine "it average rate# for *ou!try faci!itie# of #i$i!ar #tandard.

2.1 !( EB(')()

;iven at !ea#t 2 veic!e# and u#ing average fue! e6*en#e# of N3%!itre and ( !itre#day te fue! con#u$*tion i# e#ti$ated at N3%0day.

a9 Maintenance of oter $acine#e/ui*$ent i# e#ti$ated to co#t N+(000 *er annu$.

b9 Te Leic!e# "i!! be $aintained at N300000 *er annu$.

2.2 M;';(@('% ;' P()&''( C&)%

e note tat due to te auto$ation of te Pou!try #taff ead count #ou!d be ke*t at a Mini$u$ unti! te $ature bird# are due for #a!e*roce##ing.

Te e#ti$ated co#t of #taff e$o!u$ent# in te fir#t year of o*eration i# N($i!!ion and an annua! increa#e of 107 *er annu$ i# e6*ected for te ne6t five year#.

&etai!ed breakdo"n of $an*o"er e6*en#e# can be #een at te #ection on $an*o"er re/uire$ent# and organi?ation cart.

+. P&% !((< V;--i';%i&'< SB;< i%%(<

(%-Te above are e#ti$ated ba#ed on a benc$arking "it $ode! *ou!try far$# a# "e!! a# indu#try be#t *ractice#. e ave o"ever been a !itt!e con#ervative in ti# $atter. Laccination co#t i# *ut at N30 *er bird. S*ray co#t i# *ut at N( 000 *er f!ock Aeed co#t i# *ut at N1 100 *er bag of 2(kg on average.

(36)

-. U%ii%i()

Te#e ave been e#ti$ated a# fo!!o"#< N

i. Te!e*one bi!!# 85d$in9 100000.00

ii. E!ectricity 200000.00

iii. ater 300000.00

iv. &ie#e! for generator 300000.00

Te *eriod of ti$e i# for one o*erating cyc!e "itin a *eriod.

. Ai% (B(')()

Te#e ave been *egged at N2(0 000 in te fir#t t"o year# ten it $oved to N3(0000 a# fro$ te tird year.

(. !;-ii%i()< C(;'i' A' M;i'%(';'-(

Te#e inc!ude ite$# #uc a# $anure e/ui*$ent c!ean4u* di#*o#a! of bird# !itter# and genera! $ateria! for te u* kee*ing of te *re$i#e# of te Pou!try faci!ity. t a# been *egged at N300 000.00 *er annu$ and increa#e# at te rate of (7 *er annu$.

2.3 G('(; O((;

Te genera! overead co#t in te fir#t year of o*eration i# e#ti$ated a# be!o"<

9 Trave! e6*en#e# N 200000

ii9 PrintingStationery 100000

iv9 Staff Gnifor$ 100000

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2.4 D(B(-i;%i&'

&e*reciation i# e#ti$ated at N+ 30%)2( on a #traigt4!ine ba#i# on an annua! ba#i# given a 107 #a!vage va!ue a# indicated be!o"< 8note tat bui!ding*ou!try e/ui*$ent i# de*reciated over a ten4year *eriod9.

34 DEPRECIATION SCHEDULE

PLTRY.EFM T

#UILDING

ENERGY OEFUIP. VEHICLES !URN.!IT YEAR

%.+21 0.%(0 0.(%0 1.2+12( 0.322,+( 1 %.+21 0.%(0 0.(%0 1.2+12( 0.322,+( 2 +.1)1 0.%(0 0.(%0 1.2+12( 0.322,+( 3 +.1)1 0.%(0 0.(%0 1.2+12( 0.322,+( % +.1)1 0.%(0 0.(%0 0.000 0.000 ( "8#18" 2#2" 2#$ "#8" 1#291" %&%A' "#819 #2" # #")" #1*" Sal+age $"#1" 2#" # "#)" 1#*" C&S%

(38)

Poultry facility Feasibility ₃₅

CHAPTER 7

REVENUE PROJECTION

Te $ain #ource# of revenue of te Pou!try faci!ity are<

i9 Sa!e of $ature bird# ii9 Sa!e of egg#

iii9 Sa!e of bird !itter#$anure iv9 Sa!e of day4o!d cick#

i9 evenue fro$ #a!e of $ature bird# i# ba#ed on initia! ca*acity of (000 bird# given a $orta!ity rate of bet"een )7 4 107 *er cyc!e.

Te *roduction ca*acity i# e6*ected to increa#e by 1007 to 10000 bird# after te fir#t t"o year# of o*eration and to 20000 bird# beginning fro$ year five a!! oter ting# re$aining a# a##u$ed. Ao!!o"ing te a##u$*tion# revenue fro$ #a!e of $ature bird# #ou!d average N).+($i!!ion for a (000 bird ca*acity N13.(0$i!!ion for a 10000 bird ca*acity and N2+.0$i!!ion for a 20000 bird ca*acity a!! on a "or#t ca#e #cenario. Te e#ti$ate d

indu#try gro"t rate i# about 12.(7 annua!!y.

ii9 evenue fro$ te #a!e of egg# i# ba#ed on *rojected nu$ber of !ayer# "ic con#titute# +07 of tota! bird count te !ayer# !ife cyc!e of -0 "eek#

(39)

te !aying *eriod of (2 "eek# te abi!ity to !ay 2egg# in every 3 day #

during te !aying *eriod and given te a##u$ed $orta!ity rate ear!ier #tated above a# "e!! a# te gro"t in bird count over te *!anning *eriod. Te tota! e#ti$ated revenue fro$ ti# #eg$ent #ou!d be N).,--$i!!ion for a (000 bird ca*acity N13.,0$i!!ion for a 10000 bird ca*acity and N2+.)$i!!ion for a 20000 bird ca*acity on an annua! ba#i#. Te average indu#try gro"t rate i# 1(7 *er annu$.

36

iii9 evenue fro$ #a!e of $anure and bird !itter# i# ba#ed on indu#try average revenue e#ti$ate# and given te #trategic !ocation of te *ou!try. t i# e#ti$ated tat N12-000 = N%-2000 "i!! be rea!i?ed fro$ te above #a!e# given ca*acity uti!i?ation of bet"een (000 = 20000 bir d#

re#*ective!y. Te figure #ou!d gro" by about 107 *er annu$

iv9 evenue fro$ #a!e of day o!d cick# i# ba#ed on e#ti$ated avai!abi!ity of atcery #y#te$# govern$ent *o!icy on te i$*ortation of day o!d cick# and given te $orta!ity rate of te day o!d cick# a$ong oter #.

Terefore it i# e#ti$ated tat N12.%0,$i!!ion N1,.)12$i!!ion and N2%.,1)$i!!ion re#*ective!y "i!! be rea!i#ed on a ca*acity of %0000 )0000 and ,0000 day o!d cick#. Te e#ti$ated gro"t rate in #a!e# #ou!d be 1(7 *er annu$.

On te ba#i# of above a##u$*tion# tota! revenue for year# 1 4 ( #ou!d a #

#o"n be!o". Te ca*acity of 10000 bird# #ou!d be in#ta!!ed in year 3 "i!e tat of 20000 bird# #ou!d be in#ta!!ed in year (. Te average *ercent gro"t in revenue of 137 *er annu$ i# a##u$ed a# *er genera! indu#try trend.

(40)

:ear 1 N2).1,( $i!!ion

:ear 2 N2-.%(- $i!!ion 12.(7 gro"t rate :ear 3 N%).1)+ $i!!ion ().+27 gro"t rate :ear % N(1.-3, $i!!ion 12.(7 gro"t rate :ear ( N+-.-02 $i!!ion (3.,%7 gro"t rate

37

CHAPTER 

!INANCING PLAN

Traditiona!!y any *roject# tat ave been found to be co$$ercia!!y viab!e are financed troug e/uity contribution of #*on#or# and !oan# = ter$ !oan# and bank overdraft#. Our variou# di#cu##ion# "it te *ro$oter #o" tat te financing #tructure and *attern #ou!d fo!!o" above *at. Con#e/uent!y te Pou!try faci!ity# ca*ita! co#t of N),.13( $i!!ion i# reco$$ended to be financed a# fo!!o"#<

N?Mii&' :

i9 E/uity Contribution 1(.02+ 20.00

ii9 SMES 'oan (0.000 )).((

iii9 Start4u* funding 10.10, 13.%(

T&%; N75.135 100.00

i. E/uity contribution "i!! cover te co#t of initia! ac/ui#ition of !and and a# "e!! a# for te con#truction and co$*!etion of te Pou!try faci!ity bui!ding. Te #u$ #ou!d a!#o cover te con#truction and *art4furni#ing of te ad$ini#trative office and #tore roo$#.

(41)

te auto$ated *ou!try and atcery e/ui*$ent and #tart4u* o*erationa! e6*en#e#.

t i# our vie" tat te *roject "i!! not ave difficu!tie# in #ecuring ter$ !oan# tat can be acieved troug 'oan #yndication "it one of te !eading co$$ercia! bank# a# a !ead banker. Gnited Bank for 5frica 8GB59 Gnion Bank of Nigeria 8GBN9 Air#t Bank of Nigeria 8ABN9 5fribank and e$a Bank. Te oter buoyant co$$ercia!$ercant bank# #ou!d be "i!!ing to *artici*ate.

5noter viab!e #ource of financing te *roject i# by !ea#e finance. Once te viabi!ity ana!y#i# a# indicated *roject acce*tance te /ue#tion of "eter to

Poultry facility Feasibility ₃₈

finance by !ea#ing or borro"ing beco$e# #econdary #ince te *roject "i!! do "e!! "atever te coice of financing. o"ever !ea#e financing i# *articu!ar!y attractive on te fo!!o"ing ground#<

i9 t a!!o"# 1007 debt financing a# e/uity contribution i# not re/uired. ii9 t i# ea#ier and /uicker to obtain a !ea#e tan to obtain a !oan

iii9 'o"er e/uity ta6e# are *aid

iv9 t a# greater ta6 #aving# over a buy deci#ion

Te SMES !oan i# e6*ected to reduce te *ain# of #ervicing a regu!ar bank revo!ving !oan "it *eriodic intere#t and *rinci*a! re*ay$ent#.

(42)

39

CHAPTER "

!INANCIAL PROJECTIONS AND APPRAISAL O! COMMERCIAL VIA#ILITY

Ti# ca*ter undertake# te financia! *rojection of te *roject by re!ating te *rojected #trea$# of co#t# and revenue for te fir#t five year# of it# o*eration#.

Tereafter #tandard a**rai#a! tecni/ue# are u#ed to eva!uate te fea#ibi!ity or co$$ercia! *rofitabi!ity of te *roject.

1. P&,(-%( P&i% ;' L&)) A--&'%

Te *rojected Profit and 'o## #tate$ent# of te co$*any for ( year# #o"# tat te *roject "i!! *o#t net *rofit after ta6 of N%.,-)$i!!ion in te fir#t year of o*eration. n te #econd year net *rofit after ta6 i# e6*ected to be N2.+3($i!!ion. Beginning fro$ year tree te *roject #ou!d begin to rea!i?e #ub#tantia! *rofit# of N+.3+-$i!!ion fa!!ing to N%.1-2$i!!ion in year four due to e6*an#ion co#t# incurred in te !atter *art of year tree. n te fift year it "i!! ri#e to N1%.%)1$i!!ion. Te ig e/ui*$ent co#t# at te beginning of te *roject a# "e!! a# additiona! increa#e# in ca*acity uti!i?ation by $ean# of $ore bird# and &ay o!d cick# account for te f!uctuation# in revenue and co#t #tructure. Te range of annua!i?ed return on inve#t$ent #ou!d be bet"een %.07 and 21.227 year over year a# #o"n in te inco$e #tate$ent.

(43)

2. C;) &8 P&,(-%i&'

Te ca# f!o" *rojection indicate# tat te *roject "i!! ave a rea#onab!e financia! *o#ition over te five4year *eriod. 5!$o#t a!! te Pou!try faci!ity# #ervice# #ou!d be #o!d on a near4ca# ba#i# e6ce*t for a fe" cor*orate cu#to$er# tat $igt a#k for #ort4ter$ credit. 5# a re#u!t te *rojected net ca# f!o" i# *o#itive trougout te *eriod e6ce*t for year t"o. Ti# *o#ition i# furter #trengtened by te fact tat co$*any o*erate# !itt!e credit e6ten#ion a# a *ro*ortionate!y uge SMES debt *ortfo!io and i# $anaged *rofe##iona!!y. Te ca# f!o" *rojection i# attaced.

40

PROJECTED #ALANCE SHEET !OR THE 5=YEAR PLANNING PERIOD

All ,gures are n .llons of Nara #ALANCE SHEETS Y(; 1 2 3 4 5 C;) ;' N(; C;) 14<2"6<7 17<442<25 23<"12<47 24<"76<54 27<21< i%(@) "6 5 1 2 4 D( &@ (;%( B;%i() = = = = 10<274<5 14<""7<00 1"<"44<50 2"<164<50 3"<24<50 P(B;i EB(')() 00 0 0 0 0 1<421<4 20<724<1 32<47<4 36<53<2" 56<211<05 I'('%& ;' $IP "" 7 5 5 7 O%( A--&'%) 652<"0 1<22<11 1<2"<44 1<""7<55 R(-(i;+( " 0 1<154<1 75 7 0 T&%; -('% ;))(%) G&)) B&B(%< B;'%  (iB@('% L()) ;--@;%( (B(-i;%i&' N(% B&B(%< B;'%  (iB@('% T&%; ;))(%) 43<645<7 05 5<15<0 00 96<54<6 25* 51<330<3 75 "4<"76<0 0 513<72 54<"5<55 1 5<15<00 0 913<70"<25 0* 44<475<75 0 ""<461<30 1 74"<5 77<4"<63 0 5<15<00 0 923<003<" 5* 35<11<10 5 112<670<73 5 "1<"77<7 4 5<15<00 0 932<2"<54 0* 25<6<46 0 117<64<24 4 1<45"<76 124<711<"" 1 5<15<00 0 941<5"3<1 5* 16<5"1<1 5 141<303<0 6 1<"67<54 A--&'%) B;;+( 5 0 1<003<1 1  0 2<0"<20 1<172<12 1<""6<27 6<6<0 T;() P;;+( 0 0 3<513<6 50 2 " 465<7" 1<606<75 Dii(') P;;+( = = 1"<52 7 4 "<"2<70 10<"31<43 12<07"<24 13<347<56 14<74"<05 C('% P&%i&' & LTD 5 " 0 1 4 1<54<65 2<"50<14 5<366<26 6<405<00 O%( A--;) 1 5 4<21<4 65 6 0 14<053<2 15<03<55 21<634<32 22<635<66 31<614<43 T&%; -('% i;+ii%i() 1 4 4 3  61<000<0 61<000<00 61<000<00

(44)

L&'=%(@ (+% 00 61<000<000 61<000<0000 0

15<027<0 15<027<00 15<027<00 15<027<00 15<027<00 C&@@&' S%&-> = P;i B 00 0 0 0 0

4<"5<7" 2<734<"4 4<1"2<17 14<460<7 N(% I'-&@( "  7<37<6 64 1 7 1"<"22<7 22<657<74 30<036<41 34<22<5 4<6"<36 S;(&() (i% "" 7 1 2 " T&%; &'=%(@ (+% ;' 0<"22<7 3<657<74 "1<036<41 "5<22<5 10"<6"<36 (i% "" 7 1 2 " "4<"76<0 ""<461<30 112<670<73 117<64<24 141<303<0 T&%; Li;+ii%i() 0 1 5 5 6 Current Rato %otal 'a/ltes0ut3 #1 1 #*8 #"8 *#) #9* #8  #92 #1 #$ 2#2*

Poultry facility Feasibility ₄₁

PROJECTED PRO!IT  LOSS !OR 5=YEAR PLANNING PERIOD

INCOME STATEMENTS All ,gures are n .llons of Nara

Y(; 1 2 3 4 5 S;() 26<15<500 2"<45<6 46<167<000 51<"37<75 7"<"02<000 4ro5t6 rate (7! = 12#"7 ")#$27 12#"7 "#8*7 L()) COGS 910<274<500* 914<""7<000* 91"<"44<500* 92"<164<500* 93"<24<500* 4ro5t6 rate (7! = 1#*97 2*#817 1#)17 2"#$)7 G&)) B&i% 15<"11<000 14<461<6 26<222<500 22<773<375 40<617<500 4ro5t6 rate (7! -1#27 **#8"7 -1"#1"7 *#97 L()) SGA (B(')() 9513<725* 974"<50* 9""7<225* 91<45<225* 91<"64<225* 4ro5t6 rate (7! 1#*97 2*#817 1#)17 2"#$)7

E;'i') +(&( I'%(()%<

T;  D(B(-. 15<3"7<275 13<711<3 25<225<275 21<315<150 3<653<275 L()) (B(-i;%i&' 96<54<625* 96<54<625* 9"<2"4<645* 9"<2"4<645* 9"<2"4<645* E;'i') ;%( (B. +4 I'%(()%  T; <542<650 6<57<213 15<"30<630 12<020<505 2"<35<630

(45)

= = = = = L()) SMIES i'%. (B;@('% ;--; 91<54<651* 92<"50<145* 94<21<465* 95<366<266* 96<405<000* P(=%; i'-&@( 6<""3<""" 3<"07<06 11<712<165 6<654<23" 22<"53<630 C@;%i( B(=%; i'-&@( 9NOL* 6<""3<""" 10<"01<067 22<613<232 2"<267<471 52<221<101 T;() 2<0"<200 1<172<120 93<513<650* 91<""6<272* 96<6<0"* P(=%; i'-&@( 6<""3<""" 3<"07<06 11<712<165 6<654<23" 22<"53<630 L()) %;() 92<0"<200* 91<172<120* 93<513<650* 91<""6<272* 96<6<0"* L()) P&B&)( Dii(' = = 91"<52* 9465<7"7* 91<606<754* N(% i'-&@( 4<"5<7"" 2<734<"4 7<37<664 4<1"2<171 14<460<77 4ro5t6 rate (7! -$9#17 )2#97 -$)#17 $1#17 Return on n+estment $#197 *#17 1#87 )#1"7 21#227 Return on Sales 18#$7 9#287 1"#987 8#$7 18#17 Return on ut3 19#*87 1#887 29#)7 1)#)87 "$#"7

42

(46)

STATEMENTS O! CASH !LO$S

All figures are in Millions of Naira Y(; 1 2 3 4 5 N(% i'-&@( 4<"5<7"" 2<734<"4 7<37<664 4<1"2<171 14<460<77 P) (B(-i;%i&' 6<54<625 6<54<625 "<2"4<645 "<2"4<645 "<2"4<645 L()) i'-(;)( i' i'('%& 10<171<755 97<4""* 6<761<16 9262<41* 3<"2<450 P) I'%(()% &' I'()%@('%) = = = = = L()) i'-(;)( i' ;--&'%) (-(i;+( 9130<"2* 2<"45<6" 946<167* 4<"34<0" 93<5"<267* P) i'-(;)( i' ;--&'%) B;;+( 2<054<"00 4<4""<100 1""<445 2<05<262 1<17<535

C;) &8 &@ &B(;%i&') 23<46<152 17<027<043 23<57<773 20<243<6"5 25<003<150

L()) i'()%@('% 975<135<000* = = = =

C;) &8 &@ &B(;%i&')

;' i'()%) 951<2<4* 17<027<043 23<57<773 20<243<6"5 25<003<150 P) '(% '(8 (i% -;Bi%; ;i)( 15<027<000 = = = = C('% (; I'%(()% 91<54<651* 92<"50<145* 94<21<465* 95<366<266* 96<405<000* L()) ii(') B;i = = 91"<52* 9465<7"7* 91<606<754* I'-. 9D(-.* i' &'=%(@ (+% 51<107<2"5 910<"31<43"* 912<07"<240* 913<347<561* 914<74"<054* I'-. 9D(-.* O%( +&&8i') = = = = =

C;) &8 &@ &B)<

i'()%)< ;' i' 13<2"6<7"6 3<145<45" 6<470<216 1<064<072 2<242<342 #(i''i' -;) +;;'-( 1<000<000 14<2"6<7"6 17<442<255 23<"12<471 24<"76<542 E'i' -;) +;;'-( 14<2"6<7"6 17<442<255 23<"12<471 24<"76<542 27<21<4

(47)

43

>?$HAT I!?? ANALYSIS !OR THE !IRST YEAR O! OPERATION

0 0 000 (00 )+(0 ),-, 00 00 ,1000 ,2+,2 ,),()0 12%0,0 1%,,-)

&ay o!d Cick# 0 00 00

-030 12- 1(%, Manure'itter# 0 000 00

N(% S;() 1,32-,(0 2)1,((00 31%22)00 C&)%) & G&&) S& 2.000 1.000 0.500 Lariab!e Co#t of ;ood# So!d 20(%-000 102+%(00 (13+2(0 Ai6ed Co#t# ec!a##ified to Lariab!e

Co#t# 0 0 0

T&%; V;i;+( C&)%) 20(%-000 102+%(00 (13+2(0 1.100 1.000 0."00 Ai6ed Co#t# of ;ood# J Service# 0 0 0

T&%; C&)%) & G&&) S& 20(%-000 102+%(00 (13+2(0 G&)) P&i% =2<21"<150 15<"11<000 26<25<350

% of Total Sales !"#!!% $#&$% '(#$)% OB(;%i' C&)%) 1.200 1.000 0."00 Sa!e# J Marketing 30,23( 2(),)3 2311+) ; J 5 8"itout &e*reciation9 30,23( 2(),)3 2311+) &e*reciation ),(%)2( ),(%)2( ),(%)2( Ai6ed Co#t# ec!a##ified to Lariab!e

Co#t# 0 0 0

T&%; EB(')() +%+10-( +3),3(0 +31)-+,

I'-&@( !&@ OB(;%i&') ="<6"0<245 <542<650 1<"6<373 $HAT I! ANALYSIS YEAR ! SCENARI*

P())i@i)%i- P;''(

OB%i@i)%i-S;() 70: 100: 120:

Mature bird# %+2(00

(48)

ntere#t nco$e 8E6*en#e9 4 QAi6edQ 41(%,)(1 41(%,)(1 41(%,)(1 nco$e Ta6e# 4 QLariab!eQ 0 420-,200 0

N(% I'-&@( A%( T;() =11<23<"6 4<"5<7"" 17<41"<722

#REAK EVEN ANALYSIS !OR THE 5=YEAR PLANNING PERIOD

Poultry facility Feasibility ₄₄

#REAK EVEN ANALYSIS 9NMILLIONS*

YEAR 1 2 3 4 5 2)1,( (0 2-%(, %)1)+00 (1-3+, +--02 S;() 0 ),, 0 +( 000 V;i;+( C&)%) 102+% (0 1%--+ 1--%%(0 2-1)%( 3-2,% Materia! J 'abor 0 000 0 00 (00 Co$$i##ion# 4 4 4 4 10<274< 50 14<""7< 1"<"44<50 2"<164<5 3"<24< T&%; V;i;+( C&)%) 0 000 0 00 500

0.3-2 0.(0- 0.%32 0.()2 0.%-2

!i( C&)%) 9-;- ;) : & );()*

Ai6ed Co#t of ;ood# J Service# 0.0007 0.0007 0.0007 0.0007 0.0007

Sa!e# J Marketing 8"o

Co$$i##ion#9 2.(007 2.(007 2.(007 2.(007 2.(007

; J 5 8"itout &e*reciation9 2.(007 2.(007 2.(007 2.(007 2.(007

T&%; !i( C&)%) 9-;- ;) : &

);()* 5.000: 5.000: 5.000: 5.000: 5.000:

!i( C&)%) 9i( ;@&'%)*

Ai6ed Co#t of ;ood# J Service# 4 4 4 4 4

Sa!e# J Marketing 8"o 2(), 3+% %-,) +2- -,2 Co$$i##ion#9 )3 -2( 13 113 113 2(), 3+% %-,) +2- -,2 ; J 5 8"itout &e*reciation9 )3 -2( 13 113 113 ),(%) 2 ),(% -2-%)% -2-% -2-% &e*reciation ( )2( ( )%( )%(

T&%; !i( C&)%) 9i( 7<36<35 7<604 10<2"1<7 10<752< 11<25< ;@&'%)* 0 <475 0 70 70

<542<6 5

6<57 15<"30<63 12<020<5 2"<35< I'-&@( &@ OB(;%i&') 0 <213 0 05 630

(49)

81(%, )

82-(0 8%21,%) 8(3))2 8)%0( ntere#t nco$e 8E6*en#e9 4 QA

i6edQ

(19 1%(9 (9 ))9 0009 820-,

2

811+2 83(13)( 81--)2 8),,) nco$e Ta6e# 4 QLariab!eQ 009 1209 09 +29 0,-9

4<"5<7 "

2<734 <1"<51 4<657< 16<067< N(% I'-&@( A%( T;() " <"4 6 "67 541

A';)i)

ncome from &peratons

Contribution Margin 0.60 0.4"1 0.56 0.43 0.50 1212) %% 1(%-0 1,11-+3 2%(23% 221%, Break4Even Sa!e# - %3+ ( 2, 2%2 S;() V&@( A+&( #(;>= 1%0(-0( 13-), 2,0%+2) 2+%1%% (++(3 E(' 1 2(1 ( %+ +(,

45

S..AR &, ASS.P%&NS

Te acco$*anying financia! *rojection# are ba#ed on a nu$ber of a##u$*tion# $ade in te *roce## of foreca#ting future event# and circu$#tance#. Te a##u$*tion# di#c!o#ed be!o" are to#e tat are con#idered to be #ignificant to te *re*aration of it# financia! *rojection#. So$e a##u$*tion# regard!e## of te a$ount of #tudy or ana!y#i# "i!! not $ateria!i?e and une6*ected event# and circu$#tance# $ay occur after te date of te financia! *rojection#. Tu# it #ou!d be e6*ected tat actua! re#u!t# "i!! vary to #o$e degree fro$ t e

*rojected re#u!t# and te variation# cou!d be $ateria!.

S%RA%4C ;RC%&N

To finance gro"t te Co$*any re/uire# N(0 $i!!ion SMES ter$ financing in te fir#t /uarter of 200( a# "e!! a# N10.10,$i!!ion #tart4u* e6*en#e# funding.