The document provides a budget and funding plan for constructing a poultry farm with housing and materials for 1000 local chickens. The total upfront cost to build the farm and purchase 1000 chicks is estimated to be 66,402 SEK. This includes 24,032 SEK for constructing the poultry house, 3,144 SEK for additional materials, and 39,225 SEK for purchasing 1000 chicks and feeding them for the first 23 weeks. Once established, the farm is projected to generate an annual profit of approximately 30,000 SEK by selling eggs and broiler chickens.
The document provides a budget and funding plan for constructing a poultry farm with housing and materials for 1000 local chickens. The total upfront cost to build the farm and purchase 1000 chicks is estimated to be 66,402 SEK. This includes 24,032 SEK for constructing the poultry house, 3,144 SEK for additional materials, and 39,225 SEK for purchasing 1000 chicks and feeding them for the first 23 weeks. Once established, the farm is projected to generate an annual profit of approximately 30,000 SEK by selling eggs and broiler chickens.
The document provides a budget and funding plan for constructing a poultry farm with housing and materials for 1000 local chickens. The total upfront cost to build the farm and purchase 1000 chicks is estimated to be 66,402 SEK. This includes 24,032 SEK for constructing the poultry house, 3,144 SEK for additional materials, and 39,225 SEK for purchasing 1000 chicks and feeding them for the first 23 weeks. Once established, the farm is projected to generate an annual profit of approximately 30,000 SEK by selling eggs and broiler chickens.
The document provides a budget and funding plan for constructing a poultry farm with housing and materials for 1000 local chickens. The total upfront cost to build the farm and purchase 1000 chicks is estimated to be 66,402 SEK. This includes 24,032 SEK for constructing the poultry house, 3,144 SEK for additional materials, and 39,225 SEK for purchasing 1000 chicks and feeding them for the first 23 weeks. Once established, the farm is projected to generate an annual profit of approximately 30,000 SEK by selling eggs and broiler chickens.
Table of Contents Table of Contents .................................................................................................................................... 2 Introduction............................................................................................................................................. 3 Explanation for the calculations of the annual profit ............................................................................. 4 Budget for the construction of a poultry house ...................................................................................... 5 Budget for other materials ...................................................................................................................... 6 Financial input to purchase 1000 chicks ................................................................................................. 7 Total financial input to build a poultry farm and purchase 1 000 chickens ........................................ 7 Layers....................................................................................................................................................... 8 Expenses for 500 layers ....................................................................................................................... 8 Income for 500 layers .......................................................................................................................... 8 Profit for 500 local layers: ................................................................................................................... 8 Annual profitability for 500 layers....................................................................................................... 8 Broilers .................................................................................................................................................. 10 Expenses for 500 broilers .................................................................................................................. 10 Income for 500 broilers ..................................................................................................................... 10 Profit for 500 broilers ........................................................................................................................ 10 Annual profit for broilers................................................................................................................... 10 Conclusion ............................................................................................................................................. 11
2 Introduction This document shows the preliminary budget for the construction of a poultry house and 1000 local chickens. The figures have been taken from documents showing the past construction plan for Kisugu Primary School Poultry Farm (which was quite expensive) and estimations made by staff at Bukasa Primary School, where we asked a teacher that has constructed poultry houses in the past for a cheaper solution. Eggs for Education will gather more exact details and a construction plan during their visit in Uganda in June 2011. When you buy local chickens the sexes are not separated, therefore you get ca. 50 percent layers and 50 percent broilers. The numbers can change a bit but the calculations in this document are for 50/50. It takes about 8 weeks before you can separate the sexes from each other. All prices are in Swedish Kronor (SEK), based on an exchange rate from the summer 2009, when the Ugandan Shilling was stronger than today’s, in case of changes. The conclusion is that it costs 66 401 SEK to construct a poultry house and to reach full capacity with 1000 chickens. After the investment the poultry farm will generate an annual income of about 30 000 SEK.
3 Explanation for the calculations of the annual profit The poultry house will always be filled with around 1000 chickens. Every 23 weeks, the broilers will be sold for consumption and new chickens will be purchased. Only the calculations for the first phase of 500 layers will be shown in this budget, but note that more layers will be added every time a new purchase of chickens is made. For example, after 23 weeks, 500 broilers will be sold and a new phase of chickens bought. These will be mixed of around 250 layers and 250 broilers. After that phase of broilers are sold, 250 chickens will be bought (125 layers and 125 broilers). This means that there will be layers at different stages. In the annual profit, the sale of two phases of broilers has been included.
52 weeks ( 1 year) has been chosen as an average to represent the annual profit for 500 layers and 750 broilers, although the amount of either sex will vary throughout the year.
4 Budget for the construction of a poultry house
Item Price/unit Number Total
Site clearing 105 SEK 105 SEK Foundation excavation 333 SEK 333 SEK Aggregate 701 SEK /trip 2 1 402 SEK Bricks 0,8 SEK 2500 2 000 SEK Cement 105 SEK /bag 24 2 520 SEK Sand 561 SEK /trip 4 2 244 SEK Timber (for the roof) 53 SEK 78 4 105 SEK Cutting of timber 9 SEK 9 SEK Eukalyptus 12 SEK/unit 45 540 SEK Treated posts 84 SEK/unit 13 1 092 SEK Wire mesh 84 SEK/roll 10 840 SEK Nails 18 SEK/kg 25 450 SEK Iron sheets 77 SEK/unit 42 3 234 SEK Ridges 7 SEK/unit 5 35 SEK Door (frame and shutter) 561 SEK/unit 1 561 SEK Transport 1053 SEK 1053 SEK Wiring the poultry house 351 SEK 351 SEK Miscellaneous 1404 SEK 1404 SEK Labour 1754 SEK 1 754 SEK GRAND TOTAL 24 032 SEK
It will cost 24 032 SEK to construct a poultry house
5 Budget for other materials
Item Price/unit Number Total
Disinfection of the poultry house 105 SEK 105 SEK Feeding troughs (small) 9 SEK 10 90 SEK Feeding troughs (large) 18 SEK 15 270 SEK Water troughs 18 SEK 15 270 SEK Clay pots (for heat) 21 SEK 5 105 SEK Boots 57 SEK 1 57 SEK Laying nests 53 SEK 25 1325 SEK Thermometer 70 SEK 1 70 SEK Weighing scale 105 SEK 1 105 SEK Measuring cup 35 SEK 1 35 SEK Empty Trays for Eggs 158 SEK 158 SEK Rake 35 SEK 1 35 SEK Book of Accounts 484 SEK 1 484 SEK Check book 35 SEK 35 SEK GRAND TOTAL 3 144
An additional 3 144 SEK will be needed for other material.
6 Financial input to purchase 1000 chicks It takes 23 weeks for a hen to start laying eggs and for the broilers to grow big enough to sell. After 23 weeks no additional funding is needed and the poultry farm sustains itself.
The table below shows the budget that Eggs For Education is striving towards achieving in order to buy 1000 chicks. It shows expenses up to 23 weeks.
Cost for 1000 local chickens for the first 23 weeks: 39 225 SEK.
Total financial input to build a poultry farm and purchase 1 000 chickens 24 032 SEK + 3 144 SEK + 39 225 SEK = 66 402 SEK
Total financial input to build a poultry farm and purchase 1 000 chickens: 66 402 SEK
1 Fixed costs includes payment for night watchman, phone bills, bank charges and transport. These costs are more or less the same no matter the number of chicks in the poultry.
7 Layers Expenses for 500 layers Below are the calculations for expenses for 63 weeks (the lifetime of a layer). Local hens start to lay eggs after 23 weeks and then they lay for about 40 more weeks.
Item Price / unit Number Total
Chicks 3,5 SEK 500 1 750 SEK Feeds for life 47 140 SEK Vaccinations 455 SEK Sawdust, charcoal, paraffin 3 900 SEK De-worming 175 SEK Fixed costs 3 180 SEK GRAND TOTAL 56 600 SEK
Total expenses for 500 local layers for their whole life time: 56 600 SEK
Income for 500 layers
The estimated egg production rate for layers is 70 percent. This means that 500 layers lay ca 350 eggs/day or 2450 eggs a week. Each layer lays for 40 weeks which makes the lifetime production from 500 layers= 98 000 eggs.
Eggs from Kisugu Primary School will mostly be sold in trays of 30 eggs. After 40 weeks, 500 layers would have produced 3 266 trays. Each tray is sold for 21 SEK.
Item Price/unit Number Total
Eggs 21 SEK/tray (30 eggs) 3266 trays in 4 weeks 68 600 SEK Off layers 28 SEK/ bird 500 14 000 SEK GRAND TOTAL 82 600 SEK
Total income for 500 layers: 82 600 SEK
Profit for 500 local layers:
82 600 – 56 600 = 26 000 SEK
Total profit after 63 weeks: 26 000 SEK
Annual profitability for 500 layers
26 000 SEK ÷ 63 weeks = 412 SEK profit every week
There are 52 weeks in one year
412 SEK x 52 weeks = 21 424 SEK
8 The annual profitability for 500 layers: 21 424 SEK
A local broiler that is 23 weeks old may be sold at the price 53 SEK
53 SEK X 500 = 26 500 SEK
Income for 500 broilers: 26 500 SEK
Profit for 500 broilers
Since it costs 20490 SEK to rear 500 broilers. The calculations for the profitability are:
26500 – 20490 = 6010 SEK
Total profit for 500 local broilers after 23 weeks: 6010 SEK
Annual profit for broilers
After 23 weeks, 250 more broilers will be bought and sold when they are old enough to be consumed.
500 layers from phase one + 250 layers from phase 2 = 750 layers in one year.
6010 ÷ 500 = 12 SEK
12 SEK x 250 broilers = 3 005 SEK
6010 SEK + 3005 SEK = 9015 SEK
The annual profit for 750 broilers: 9015 SEK
10 Conclusion
Cost to start a poultry farm: 66 402 SEK
500 local layers profitability for 52 weeks: 21 424 SEK. 750 local broilers profitability for 52 weeks: 9015 SEK. Total profitability per year for 1250 chicks: 30 439 SEK. In a school with 1000 students: 10 SEK/term/student, or 30 SEK/year/student. OR with term fees at 130 SEK, 230 school fees for free/term, or 80 students for free/year.
