PDF Poultry Farm Proposal for Egg Production (Organic Free Range)

This is an example commercial poultry farm proposal for expanding organic, free range egg production.

(It’s downloadable as a PDF, just press the button above.)

On this page, you’ll find a custom poultry farm proposal including:

• Background
• Proposal
• Sensitivity
• Market Demand
• Marketing & Sales
• Operations
• Financial Statements
• Assumptions
• Exclusions
• Annexure

Quick note: Although this poultry farming proposal was set in South Africa, the general principles and reading value will hold up whether you are from Ethiopia or Kenya, for example…

…Or, anywhere else for that matter. (It’s all universal stuff.)

So without further ado, let’s see the proposal!

Introduction To Poultry Farm Proposal

Yippe Yolk Farm Inc. is a successful small scale egg organic laying farm in Gauteng, South Africa.

Started in 2019, the farm began with just 3,000 layer bird capacity.

And since then (some 72 weeks later) the farm has doubled its laying capacity (6,000 layers).

This was fueled by strong consumer demand for the product.

The USP of brighter, more vibrant yolks has been especially successful with restaurant chefs and food manufacturers.

Now, the executive team are confident that given the market feedback, that there is a solid case for expanding the laying capacity to 20,000 layers.

Having landed some high-profile PR coverage with notable recommendations from leading South African chefs,

Plus, rising consumer sales in the growing network of highstreet retail venues,

It is very apparent that an expansion in capacity is earnestly warranted.

This proposal is a summarised pitch for funded and financial support required to raise the necessary growth capital.

All facts figures and findings herein are researched and provide a basis for this investment proposal.

Background

Market Analysis

“The poultry and egg industry is the largest sub-sector of the South African agricultural sector.

The poultry industry represented 16.6% or R47.9bn of the total gross value of 2018 agricultural production of R288.6bn and is the largest animal production segment.”

(Source: Business Wire)

“The South African organic industry has an estimated annual value of between R70 million to R80 million with fresh produce making up the majority (70 percent) of organic food sales (De Vynck, 2005).

This represents 0.3 percent of the 29 total food market (Irwin, 2002).

This is low in comparison with the markets in Northern America, Europe and Latin America (See Table 2.1).

It is difficult to determine the local retail demand for organic food as there is no readily available time series data on retail sales.

The leading research firm, AC Nielsen does not collate data separately for organic food products.

Currently, demand is more than the supply particularly for organic milk and chicken (Mead, 2005).”

(Source: University of Pretoria)

The statistical trend of increasing demand for organic produce in South Africa supports the 1st hand customer feedback of the company.

“In their haste to catch up, the South African chefs hardly know which way to turn. One-half of the Cape is trying to follow America, Mr. Stroebel said. The other half is trying to use the fusion of the Indian and Malay that is already here.”

“The South African national dish, bobotie, captures its essence. It was said to have been brought to Europe by the Crusaders and to Africa by both the Dutch and the Malays. In South Africa, it has become a meat pie of coarsely ground lamb with plenty of curry, bay or lemon leaves and fruits, covered with a custard of milk and eggs, as homey and much loved as meatloaf is in the United States.”

(Source: New York Times)

There’s some serious growth potential for supplying organic produce in South Africa.

Especially to high-end hospitality & event catering clients.

And it seems South African chefs are only just catching on to some of the more forward-thinking global gastro-movements.

The future is more fusion and richer blends, with a focus on vibrant colours and creamier textures.

Eggs are often a common ingredient feature, especially for the toppings like in Bobotie.

The long and short of it is there plenty more upside potential in the South African organic foods market.

(SWOT)

“Garth Stroebel, the executive chef at the Mount Nelson Hotel in Cape Town, said that until recently the best ingredients were sent out of the country.

Five years ago, we had to take what was given to us — now, we are finding growers and buying from them directly.”

(Source: New York Times)

Strengths

We have strong press coverage and already some leading names in the culinary professional circles under our belt.

We are here to serve our country’s best cooking talent.

We refuse to export our produce. We are committed to exclusively serving our own market.

And our clientele knows it. We’re really trusted domestically and that’s largely (interestingly enough) an organic thing.

Our sales are growing as our professional users expand their repertoires.

The company recently expanded capacity by 100% and the decision was proven right by our sales success.

Our share of the organic egg market has directly snowballed.

Weaknesses

Whilst we’ve benefited from increased cash flow, our capital reserves were spent on our recent expansion.

This time around we seek external capital financing to acquire land, build sheds and hold operating stock.

Opportunities

The opportunity to grow matches the market expectation – as leaders in the organic egg market, our growing userbase of professional chefs & institutions are becoming dependant.

Our desire is to walk with them, step by step – responding to their needs and entrenching our specialist supply role.

We have the conversation and don’t want to disappoint.

Threats

We can see that the profile of organic food consumption in South Africa is relatively emerging, compared with other advanced economies.

Currently, domestic producers are quite a bit behind in matching demand.

But it won’t remain that way for long.

New entrants are a constant potential. We want to capitalise on our advantage and firmly establish a strategic lead in the marketplace.

Key Factors for Success

Maintaining our healthy margins is key to the success of this growth strategy.

Sustainability is a cornerstone of the business.

Whilst we are seeking financing for this venture, it’s only because we estimate that we could miss the window and be overtaken if we try to internally fund this.

We have obtained a kind of 1st mover advantage which sets us apart from our peers.

If we self-fund this move, we might concede an advantage to another runner in this market.

Speed therefore also is a key ingredient.

Key Risks

An adverse global event like a pandemic would knock our ability to convert this goal.

Also, currently, the regulatory controls surrounding organic produce in South Africa are quite relaxed.

If that were to change, we may have some additional operational and administrative criteria to meet.

Proposal

The current demand for orders of 100,000 eggs per week exceeds our current capacity by some 70,000 eggs.

The only way we can reach this goal is to expand the farm output by 250%.

With the current constraints, the only way to achieve this is to acquire more land and build.

We would need a suitable plot of land in the region of about 150,000 – 250,000 sq.ft.

A plot like this, however: https://www.gumtree.co.za/a-land-plots-for-sale/other/calling-all-developers-business-opportunists-and-small-scale-farmers/1008838104590912583360409

Would give the project even further breathing space up to 200,000 egg per week, for R3.3m.

It’s water-rich, has plenty of organic pasture and plenty of space and room for growth.

Time is ticking. We have already just bought a batch of 6,000 layers to replace a culled batch.

Therefore we have 72 weeks of production to go before our next flock replenishment.

We aim to tie in the timeframes of both the next flock replenishment and our expanded capacity launch date.

Naturally, there will be a delay of 18-20 weeks before we start seeing egg production on the new site.

But we want to see a mirror image production profile across sites.

So, effectively we’ve got 72 weeks to:

• Scout
  Acquire
  Prepare
  Launch

…the new production site.

Our target capacity will be 10,000 layers.

Sensitivity

The company currently charges R1.88 per egg to buyers.

If prices hold, the executive team foresees a highly profitable extension of what is a very sustainable farm business.

However, there is some in-built resilience. Currently, the estimations of margin contribution per hen over the 72 week rearing period is R.329.19.

There is enough profitable headroom here that should feed costs rise, the business should still have buoyancy in profits to continue fulfilling debt repayment and further growth goals.

Market Demand

Demand is exclusively high in this niche.

There just isn’t the supply to meet it yet. And we’re far away from getting anywhere close.

It is very much supported by trend which is in our favour but also more substantially by the desire and willingness of buyers to ‘buy local’.

We are very much ahead of the curve here and should maintain the advantage on the rest of the field.

Marketing & Sales

We already have open channels of communication and transaction with buyers. And again, their demand is yet unfulfilled.

Our PR has already started a snowball effect of awareness among our target audience. User feedback of our service and products is glowing.

We are becoming firmly established in and almost synonymous with quality organic eggs in this niche.

A strong position by any estimation.

Operations

Our operations are quite lean.

On the ground, we would require more staff on the new site to fulfill keeping the flocks and managing the grounds.

But we have good training in-house and are confident of finding the talent at an affordable rate.

The centralised admin will handle all other management functions.

Economics

This is how our numbers on this new venture stack up:

[*All exceprts, tables and snippets below are produced using Poultry Project Reporter software.]

Capital Expense

Necessary capital expenses and operational or working capital:

One-Off Capital
Land
	3,300,000
Poultry House Construction
	100,000
Civil Building Construction
	80,000
Other Construction
	4,000
Feeders
	40,000
Drinkers
	30,000
Cages
	0
Vehicles
	500,000
Equipment
	75,000
Utilities Installation
	0
TOTAL: One-off Capital Cost
	4,129,000
Working Capital
Chicks
	147,788.8
Feed
	2,579,677.6
Labour
	70,000
Transport
	30,000
Livestock Insurance
	6,000
Vet Fees
	8,500
TOTAL: Expenses
	2,841,966.4
Overheads
Mortgage
	200,000
Electricity
	5,000
Gas
	1,500
Building Insurance
	5,000
Maintenance & Repairs
	10,000
Administrative Labour
	25,000
Municipality Tariffs
	5,000
Accounting & Bookkeeping
	15,000
Marketing
	25,000
Office Supplies
	1,000
Contingency
	5,000
TOTAL: Overhead Cost
	297,500
TOTAL: Working Capital Cost
	3,139,466.4
Funding
Total Project Cost
	7,268,466.4
Bank Loan
	7,268,466.4

Poultry Housing & Grounds

A summary of how much land and house floor space is needed:

Batch Metrics
Batch Size of Layer Birds
	10,000
Expected Bird Mortality Rate
	0.4
Expected Bird Mortality Per Batch
	40
Total Capacity Size of Layer Farm
	30,120
Layer Housing System
Brooder Housing System
	Deep Litter
Layer Housing System
	Deep Litter
Bird House Floor Space
Your Total Recommended Brooder Floor Space (Sq. Ft.)
	5,020
Your Total Recommended Layer Floor Space (Sq. Ft.)
	60,240
Your Total Recommended Bird House Floor Space (Sq. Ft.)
	65,260
Currency Symbol (Abbreviated)
	R
Unique ID
	PPR-L00013
Author
	Bernard Nkosi
Proposed Business Name
	Yellow Yolk Farm Inc.
Page Title
	Layer Farm Houses & Grounds

Feed Cost

Extimated feed cost of rearing the new flock:

Rearing System & Frequency of Layer Egg Sales
	1+2
Batch Size of Layer Birds
	10,000
Expected Bird Mortality Per Batch
	40
Feed Price
Feed Cost per KG
	5.8
Flock Feed Consumption
TOTAL: Feed Consumed by Flock (Year 1)
	444,772
TOTAL: Feed Consumed by Flock (Year 2)
	921,270.4
TOTAL: Feed Consumed by Flock (Year 3)
	931,712
TOTAL: Feed Consumed by Flock (Year 4)
	900,387.2
TOTAL: Feed Consumed by Flock (Year 5)
	894,764.8
TOTAL: Feed Consumed by Flock (Year 6)
	907,616
Flock Feed Cost
TOTAL: Flock Feed Cost (Year 1)
	2,579,677.6
TOTAL: Flock Feed Cost (Year 2)
	5,343,368.32
TOTAL: Flock Feed Cost (Year 3)
	5,403,929.6
TOTAL: Flock Feed Cost (Year 4)
	5,222,245.76
TOTAL: Flock Feed Cost (Year 5)
	5,189,635.84
TOTAL: Flock Feed Cost (Year 6)
	5,264,172.8

Deep Litter Cost

The cost of laying down sawdust litter on the floor of the layer houses:

Rearing System & Frequency of Layer Egg Sales
	1+2
Flock Relocations
Brooder Housing System
	Deep Litter
Layer Housing System
	Deep Litter
Type of Brooder Deep Litter
Litter Material
	Sawdust
Density (g/cm3)
	0.21
Brooder Floor Space Coverage
Your Total Recommended Brooder Floor Space (Sq. Ft.)
	5,020
Floor Space (cm2)
	4,663,730.6
Deep Litter Price
Price of Material per Ton
	800
Depth of Deep Litter Material for Brooder House
Depth of Litter (inches)
	4
Depth of Litter (cm)
	10.16
Volume of Deep Litter Material to Cover Brooder House Floor
Volume of Litter Required for Floor Coverage (cm3)
	47,383,502.9
Weight of Brooder House Deep Litter Material
Weight of Litter Required for Floor Coverage (g)
	9,950,535.61
Weight of Litter Required for Floor Coverage (tons)
	9.79
Cost of Brooder House Deep Litter Material
Cost of Litter Required for Floor Coverage
	7,832
Brooder Litter Changes
Litter Changes (Year 1)
	1
Litter Changes (Year 2)
	2
Litter Changes (Year 3)
	2
Litter Changes (Year 4)
	2
Litter Changes (Year 5)
	2
Litter Changes (Year 6)
	2
Type of Layer Deep Litter
Litter Material
	Sawdust
Density (g/cm3)
	0.21
Layer Floor Space Coverage
Your Total Recommended Layer Floor Space (Sq. Ft.)
	60,240
Floor Space (cm2)
	55,964,767.2
Deep Litter Price
Price of Material per Ton
	800
Depth of Deep Litter Material for Layer Houses
Depth of Litter (inches)
	4
Depth of Litter (cm)
	10.16
Volume of Deep Litter Material to Cover Floor of Layer Houses
Volume of Litter Required for Floor Coverage (cm3)
	568,602,034.75
Weight of Layer House Deep Litter Material
Weight of Litter Required for Floor Coverage (g)
	119,406,427.3
Weight of Litter Required for Floor Coverage (tons)
	117.52
Cost of Deep Litter Material
Cost of Litter Required for Floor Coverage
	94,016
Layer Litter Changes
Frequency
	6 Months
Litter Changes (Year 1)
	3
Litter Changes (Year 2)
	4
Litter Changes (Year 3)
	4
Litter Changes (Year 4)
	4
Litter Changes (Year 5)
	4
Litter Changes (Year 6)
	4
Annual Deep Litter Cost
TOTAL: Cost of Litter Required (Year 1)
	289,880
TOTAL: Cost of Litter Required (Year 2)
	391,728
TOTAL: Cost of Litter Required (Year 3)
	391,728
TOTAL: Cost of Litter Required (Year 4)
	391,728
TOTAL: Cost of Litter Required (Year 5)
	391,728
TOTAL: Cost of Litter Required (Year 6)
	391,728
Currency Symbol (Abbreviated)
	R
Unique ID
	PPR-L00013
Author
	Bernard Nkosi
Proposed Business Name
	Yellow Yolk Farm Inc.
Page Title
	Layer Farm Deep Litter

Operating Expenses

The direct cost of running the layer farm:

Rearing System & Frequency of Layer Egg Sales
	1+2
Batch Size of Broiler Birds
	10,000
Expected Bird Mortality Per Batch
	40
Deep Litter Cost
Deep Litter Cost (Year 1)
	289,880
Deep Litter Cost (Year 2)
	391,728
Deep Litter Cost (Year 3)
	391,728
Deep Litter Cost (Year 4)
	391,728
Deep Litter Cost (Year 5)
	391,728
Deep Litter Cost (Year 6)
	391,728
Bird House Cleaning Cost
Bird House Cleaning Cost (Year 1)
	4,720
Bird House Cleaning Cost (Year 2)
	9,440
Bird House Cleaning Cost (Year 3)
	9,440
Bird House Cleaning Cost (Year 4)
	9,440
Bird House Cleaning Cost (Year 5)
	9,440
Bird House Cleaning Cost (Year 6)
	9,440
Vet Cost
Vet Fees (Year 1)
	6,024
Vet Fees (Year 2)
	6,024
Vet Fees (Year 3)
	6,024
Vet Fees (Year 4)
	6,024
Vet Fees (Year 5)
	6,024
Vet Fees (Year 6)
	6,024
Livestock Cost
Livestock Insurance Cost (Year 1)
	6,024
Livestock Insurance Cost (Year 2)
	6,024
Livestock Insurance Cost (Year 3)
	6,024
Livestock Insurance Cost (Year 4)
	6,024
Livestock Insurance Cost (Year 5)
	6,024
Livestock Insurance Cost (Year 6)
	6,024
Fuel Cost
Fuel Cost (Year 1)
	3,982.08
Fuel Cost (Year 2)
	9,955.2
Fuel Cost (Year 3)
	10,248.96
Fuel Cost (Year 4)
	10,069.44
Fuel Cost (Year 5)
	9,873.6
Fuel Cost (Year 6)
	9,955.2
Labour Cost
Husbandry Labour Cost (Year 1)
	68,640
Husbandry Labour Cost (Year 2)
	68,640
Husbandry Labour Cost (Year 3)
	68,640
Husbandry Labour Cost (Year 4)
	68,640
Husbandry Labour Cost (Year 5)
	68,640
Husbandry Labour Cost (Year 6)
	68,640
Flock Feed Cost
TOTAL: Flock Feed Cost (Year 1)
	2,579,677.6
TOTAL: Flock Feed Cost (Year 2)
	5,343,368.32
TOTAL: Flock Feed Cost (Year 3)
	5,403,929.6
TOTAL: Flock Feed Cost (Year 4)
	5,222,245.76
TOTAL: Flock Feed Cost (Year 5)
	5,189,635.84
TOTAL: Flock Feed Cost (Year 6)
	5,264,172.8
Layer Chicks Bought
TOTAL: Layer Chick Cost (Year 1)
	147,788.8
TOTAL: Layer Chick Cost (Year 2)
	147,788.8
TOTAL: Layer Chick Cost (Year 3)
	147,788.8
TOTAL: Layer Chick Cost (Year 4)
	147,788.8
TOTAL: Layer Chick Cost (Year 5)
	147,788.8
TOTAL: Layer Chick Cost (Year 6)
	147,788.8
Total Expenses
Total Expenses (Year 1)
	3,106,736.48
Total Expenses (Year 2)
	5,982,968.32
Total Expenses (Year 3)
	6,043,823.36
Total Expenses (Year 4)
	5,861,960
Total Expenses (Year 5)
	5,829,154.24
Total Expenses (Year 6)
	5,903,772.8
Currency Symbol (Abbreviated)
	R
Unique ID
	PPR-L00013
Page Title
	Layer Farm Direct Costs

ROI Metrics

Key facts and figures for growing this business:

Feed Conversion
TOTAL: Rearing Feed in KG
	48.94
Average Weight of Egg (g)
	55
Eggs Produced By 1 Bird in 72 From Birth
	330
FCR (Feed Conversion Ratio)
	2.6964187327824
Cost Analysis
Cost per KG of Feed
	5.8
Cost of Layer Chick
	7.36
TOTAL: Input Cost To Rear 1 Layer to 72 Weeks
	291.21
Revenue & Margin
Price per Egg
	1.88
Average Sales Revenue per Bird in 72 Weeks
	620.4
Layer Hen Profit Contribution
	329.19
Manure Yield
Manure to Feed Conversion Rate
	0.7628458
Manure per Bird per Rearing Cycle (KG)
	37.33
Currency Symbol (Abbreviated)
	R
Unique ID
	PPR-L00013
Author
	Bernard Nkosi
Proposed Business Name
	Yellow Yolk Farm Inc.
Page Title
	Layer Farm ROI Metrics

Combined Sales Revenue

Money made from selling eggs, spent hens, manure and gunny bags:

Egg Production
Year 1 – Egg Sales Income
	4,605,548.8
Year 2 – Egg Sales Income
	11,513,872
Year 3 – Egg Sales Income
	11,853,625.6
Year 4 – Egg Sales Income
	11,645,998.4
Year 5 – Egg Sales Income
	11,419,496
Year 6 – Egg Sales Income
	11,513,872
Manure Production
Year 1 – Manure Sales Income
	508,938.68
Year 2 – Manure Sales Income
	1,054,180.89
Year 3 – Manure Sales Income
	1,066,128.89
Year 4 – Manure Sales Income
	1,030,284.89
Year 5 – Manure Sales Income
	1,023,851.36
Year 6 – Manure Sales Income
	1,038,556.58
Spent Hens
Year 1 – Spent Hen Sales Income
	0
Year 2 – Spent Hen Sales Income
	567,059.2
Year 3 – Spent Hen Sales Income
	567,059.2
Year 4 – Spent Hen Sales Income
	283,529.6
Year 5 – Spent Hen Sales Income
	567,059.2
Year 6 – Spent Hen Sales Income
	567,059.2
Re-Sale Gunny Bags
Year 1 – Gunny Bag Resale Income
	259,455
Year 2 – Gunny Bag Resale Income
	537,425
Year 3 – Gunny Bag Resale Income
	543,515
Year 4 – Gunny Bag Resale Income
	525,210
Year 5 – Gunny Bag Resale Income
	521,955
Year 6 – Gunny Bag Resale Income
	529,445
Project Income
TOTAL: Year 1 – Income
	5,373,942.48
TOTAL: Year 2 – Income
	13,672,537.09
TOTAL: Year 3 – Income
	14,030,328.69
TOTAL: Year 4 – Income
	13,485,022.89
TOTAL: Year 5 – Income
	13,532,361.56
TOTAL: Year 6 – Income
	13,648,932.78
Gross Project Benefit
TOTAL: Gross Benefit
	73,743,125.49
Currency Symbol (Abbreviated)
	R
Unique ID
	PPR-L00013
Author
	Bernard Nkosi
Proposed Business Name
	Yellow Yolk Farm Inc.
Page Title
	Layer Farm Sales Revenue

Gunny Bag Income

Breakdown of gunny bag sales:

Rearing System & Frequency of Layer Egg Sales
	1+2
Batch Size of Layer Birds
	10,000
Expected Bird Mortality Per Batch
	40
Gunny Bag Price Metrics
Size of Gunny Bag
	60 KGS
Resale Price per Gunny Bag
	35
Flock Feed Consumption
TOTAL: Feed Consumed by Flock (Year 1)
	444,772
TOTAL: Feed Consumed by Flock (Year 2)
	921,270.4
TOTAL: Feed Consumed by Flock (Year 3)
	931,712
TOTAL: Feed Consumed by Flock (Year 4)
	900,387.2
TOTAL: Feed Consumed by Flock (Year 5)
	894,764.8
TOTAL: Feed Consumed by Flock (Year 6)
	907,616
No. of Gunny Bags
TOTAL: Gunny Bags Received (Year 1)
	7,413
TOTAL: Gunny Bags Received (Year 2)
	15,355
TOTAL: Gunny Bags Received (Year 3)
	15,529
TOTAL: Gunny Bags Received (Year 4)
	15,006
TOTAL: Gunny Bags Received (Year 5)
	14,913
TOTAL: Gunny Bags Received (Year 6)
	15,127
Gunny Bag Resale Income
TOTAL: Gunny Bag Resale Income (Year 1)
	259,455
TOTAL: Gunny Bag Resale Income (Year 2)
	537,425
TOTAL: Gunny Bag Resale Income (Year 3)
	543,515
TOTAL: Gunny Bag Resale Income (Year 4)
	525,210
TOTAL: Gunny Bag Resale Income (Year 5)
	521,955
TOTAL: Gunny Bag Resale Income (Year 6)
	529,445
Currency Symbol (Abbreviated)
	R
Unique ID
	PPR-L00013
Author
	Bernard Nkosi
Proposed Business Name
	Yellow Yolk Farm Inc.
Page Title
	Layer Farm Gunny Bag Resale

Spent Hen Income

Breakdown of spent hen sales:

Email selmoreleads@gmail.com Rearing System & Frequency of Layer Egg Sales 1+2 Batch Size of Layer Birds 10,000 Expected Bird Mortality Per Batch 40 Spent Hen Price Spent Hen Price per Bird 28.24 Spent Hen Production Spent Hens Produced (Year 1) 0 Spent Hens Produced (Year 2) 20,080 Spent Hens Produced (Year 3) 20,080 Spent Hens Produced (Year 4) 10,040 Spent Hens Produced (Year 5) 20,080 Spent Hens Produced (Year 6) 20,080 Spent Hen Income Spent Hen Income (Year 1) 0 Spent Hen Income (Year 2) 567,059.2 Spent Hen Income (Year 3) 567,059.2 Spent Hen Income (Year 4) 283,529.6 Spent Hen Income (Year 5) 567,059.2 Spent Hen Income (Year 6) 567,059.2 Currency Symbol (Abbreviated) R Unique ID PPR-L00013 Author Bernard Nkosi Proposed Business Name Yellow Yolk Farm Inc. Page Title Spent Hen Production

Manure Sales Income

Breakdown of manure sales:

Rearing System & Frequency of Layer Egg Sales
	1+2
Batch Size of Broiler Birds
	10,000
Expected Bird Mortality Per Batch
	40
Price of Manure
Manure Price per KG
	1.5
Feed vs. Manure Conversion Rate
Manure to Feed Conversion Rate
	0.7628458
Flock Manure Production
TOTAL: Manure Produced by Flock (Year 1)
	339,292.45
TOTAL: Manure Produced by Flock (Year 2)
	702,787.26
TOTAL: Manure Produced by Flock (Year 3)
	710,752.59
TOTAL: Manure Produced by Flock (Year 4)
	686,856.59
TOTAL: Manure Produced by Flock (Year 5)
	682,567.57
TOTAL: Manure Produced by Flock (Year 6)
	692,371.05
Manure Sales Revenue
TOTAL: Manure Sales Revenue (Year 1)
	508,938.68
TOTAL: Manure Sales Revenue (Year 2)
	1,054,180.89
TOTAL: Manure Sales Revenue (Year 3)
	1,066,128.89
TOTAL: Manure Sales Revenue (Year 4)
	1,030,284.89
TOTAL: Manure Sales Revenue (Year 5)
	1,023,851.36
TOTAL: Manure Sales Revenue (Year 6)
	1,038,556.58
Currency Symbol (Abbreviated)
	R
Unique ID
	PPR-L00013
Author
	Bernard Nkosi
Proposed Business Name
	Yellow Yolk Farm Inc.
Page Title
	Layer Manure Production

Income Statement

Profit and loss of the poultry farm unit:

Depreciation
Annual Depreciation
	30.33
Loan Interest
Year 1 – Interest
	310.05
Year 2 – Interest
	254.36
Year 3 – Interest
	199.13
Year 4 – Interest
	143.28
Year 5 – Interest
	87.12
Year 6 – Interest
	30.67
Sales Revenues
Sales Revenue (Year 1)
	5,373,942.48
Sales Revenue (Year 2)
	13,672,537.09
Sales Revenue (Year 3)
	14,030,328.69
Sales Revenue (Year 4)
	13,485,022.89
Sales Revenue (Year 5)
	13,532,361.56
Sales Revenue (Year 6)
	13,648,932.78
Cost of Goods Sold
Direct Costs (Year 1)
	3,106,736.48
Direct Costs (Year 2)
	5,982,968.32
Direct Costs (Year 3)
	6,043,823.36
Direct Costs (Year 4)
	5,861,960
Direct Costs (Year 5)
	5,829,154.24
Direct Costs (Year 6)
	5,903,772.8
Gross Profit / Loss (Margin)
Gross Margin (Year 1)
	2,267,206
Gross Margin (Year 2)
	7,689,568.77
Gross Margin (Year 3)
	7,986,505.33
Gross Margin (Year 4)
	7,623,062.89
Gross Margin (Year 5)
	7,703,207.32
Gross Margin (Year 6)
	7,745,159.98
Operating Overheads
Capital Repayment of Loan – HIDDEN
	931.22
Indirect Costs (Year1) – HIDDEN
	109,780.16
Indirect Costs (Year 1)
	110,711.38
Indirect Costs (Year 2)
	110,711.38
Indirect Costs (Year 3)
	110,711.38
Indirect Costs (Year 4)
	110,711.38
Indirect Costs (Year 5)
	110,711.38
Indirect Costs (Year 6)
	110,711.38
EBITDA
Earnings Before Deductions (Year 1)
	2,156,494.62
Earnings Before Deductions (Year 2)
	7,578,857.39
Earnings Before Deductions (Year 3)
	7,875,793.95
Earnings Before Deductions (Year 4)
	7,512,351.51
Earnings Before Deductions (Year 5)
	7,592,495.94
Earnings Before Deductions (Year 6)
	7,634,448.6
EBIT
Earnings Before Interest & Tax (Year 1)
	2,156,464.29
Earnings Before Interest & Tax (Year 2)
	7,578,827.06
Earnings Before Interest & Tax (Year 3)
	7,875,763.62
Earnings Before Interest & Tax (Year 4)
	7,512,321.18
Earnings Before Interest & Tax (Year 5)
	7,592,465.61
Earnings Before Interest & Tax (Year 6)
	7,634,418.27
EBT
Earnings Before Tax (Year 1)
	2,156,154.24
Earnings Before Tax (Year 2)
	7,578,572.7
Earnings Before Tax (Year 3)
	7,875,564.49
Earnings Before Tax (Year 4)
	7,512,177.9
Earnings Before Tax (Year 5)
	7,592,378.49
Earnings Before Tax (Year 6)
	7,634,387.6
Project Summary
TOTAL: Running Costs
	33,393,890.07
TOTAL: Revenues
	73,743,125.49

Discounted Cash Flow

Total discounted cash flows of the poultry farm business:

Comparative Interest
Comparative Rate of Interest
	6
Discounted Cash Flows
Discounted Cash Flow (Year 1)
	-1,861,175.25
Discounted Cash Flow (Year 2)
	6,744,902.72
Discounted Cash Flow (Year 3)
	6,612,475.81
Discounted Cash Flow (Year 4)
	5,950,348.51
Discounted Cash Flow (Year 5)
	5,673,466.88
Discounted Cash Flow (Year 6)
	5,381,942.01
Net Present Value
Net Present Value of Future Cash Flows (NPV)
	28,501,960.68
Project Benefit & Costs
(SILENT) TOTAL: Revenues
	73,743,125.49
TOTAL: Revenues
	73,743,125.49
Project Cost
TOTAL: Running Costs
	33,393,890.07
TOTAL: Running Costs + One-Off Capital Cost
	37,522,890.07
Benefit Cost Analysis
Benefit Cost Ratio (B/C)
	1.97
Currency Symbol (Abbreviated)
	R
Unique ID
	PPR-L00013
Author
	Bernard Nkosi
Proposed Business Name
	Yellow Yolk Farm Inc.
Page Title
	Layer Farm Cash Flow (DCF, IRR, NPV, BCR)

Loan Repayment

The scedhuuled loan repayments for financing the venture:

Loan Metrics
Principal
	7,268,466.4
Interest Rate
	18.5
Effective Interest Rate
	0.015416666666667
Term (Years)
	6
Term (Months Converted)
	72
Instalment
	167,838.73
Interest 1
	112,055.52
Principal 1
	55,783.206333331
Balance 1
	7,212,683.19
Interest 2
	111,195.53
Principal 2
	56,643.2
Balance 2
	7,156,040
Interest 3
	110,322.28
Principal 3
	57,516.45
Balance 3
	7,098,523.55
Interest 4
	109,435.57
Principal 4
	58,403.16
Balance 4
	7,040,120.39
Interest 5
	108,535.19
Principal 5
	59,303.54
Balance 5
	6,980,816.85
Interest 6
	107,620.93
Principal 6
	60,217.8
Balance 6
	6,920,599.05
Interest 7
	106,692.57
Principal 7
	61,146.16
Balance 7
	6,859,452.89
Interest 8
	105,749.9
Principal 8
	62,088.83
Balance 8
	6,797,364.05
Interest 9
	104,792.7
Principal 9
	63,046.03
Balance 9
	6,734,318.02
Interest 10
	103,820.74
Principal 10
	64,017.99
Balance 10
	6,670,300.03
Interest 11
	102,833.79
Principal 11
	65,004.94
Balance 11
	6,605,295.09
Interest 12
	101,831.63
Principal 12
	66,007.1
Balance 12
	6,539,287.99
Year 1 Only – Interest
	1,284,886.35
Year 1 – Cumulative Interest
	1,284,886.35
Interest 13
	100,814.02
Principal 13
	67,024.71
Balance 13
	6,472,263.28
Interest 14
	99,780.73
Principal 14
	68,058
Balance 14
	6,404,205.28
Interest 15
	98,731.5
Principal 15
	69,107.23
Balance 15
	6,335,098.05
Interest 16
	97,666.09
Principal 16
	70,172.64
Balance 16
	6,264,925.41
Interest 17
	96,584.27
Principal 17
	71,254.46
Balance 17
	6,193,670.95
Interest 18
	95,485.76
Principal 18
	72,352.97
Balance 18
	6,121,317.98
Interest 19
	94,370.32
Principal 19
	73,468.41
Balance 19
	6,047,849.57
Interest 20
	93,237.68
Principal 20
	74,601.05
Balance 20
	5,973,248.52
Interest 21
	92,087.58
Principal 21
	75,751.15
Balance 21
	5,897,497.37
Interest 22
	90,919.75
Principal 22
	76,918.98
Balance 22
	5,742,473.58
Interest 23
	88,529.8
Principal 23
	79,308.93
Balance 23
	5,742,473.58
Interest 24
	88,529.8
Principal 24
	79,308.93
Balance 24
	5,663,164.65
Year 2 Only – Interest
	1,136,737.3
Year 2 – Cumulative Interest
	2,421,623.65
Interest 25
	87,307.12
Principal 25
	80,531.61
Balance 25
	5,582,633.04
Interest 26
	86,065.59
Principal 26
	81,773.14
Balance 26
	5,500,859.9
Interest 27
	84,804.92
Principal 27
	83,033.81
Balance 27
	5,417,826.1
Interest 28
	83,524.82
Principal 28
	84,313.91
Balance 28
	5,333,512.19
Interest 29
	82,224.98
Principal 29
	85,613.75
Balance 29
	5,247,898.44
Interest 30
	80,905.1
Principal 30
	86,933.63
Balance 30
	5,160,964.81
Interest 31
	79,564.87
Principal 31
	88,273.86
Balance 31
	5,072,690.95
Interest 32
	78,203.99
Principal 32
	89,634.74
Balance 32
	4,983,056.21
Interest 33
	76,822.12
Principal 33
	91,016.61
Balance 33
	4,892,039.59
Interest 34
	75,418.94
Principal 34
	92,419.79
Balance 34
	4,799,619.81
Interest 35
	73,994.14
Principal 35
	93,844.59
Balance 35
	4,705,775.22
Interest 36
	72,547.37
Principal 36
	95,291.36
Balance 36
	4,610,483.85
Year 3 Only – Interest
	961,383.96
Year 3 – Cumulative Interest
	3,383,007.61
Interest 37
	71,078.29
Principal 37
	96,760.44
Balance 37
	4,513,723.42
Interest 38
	69,586.57
Principal 38
	98,252.16
Balance 38
	4,415,471.26
Interest 39
	68,071.85
Principal 39
	99,766.88
Balance 39
	4,315,704.37
Interest 40
	66,533.78
Principal 40
	101,304.95
Balance 40
	4,214,399.42
Interest 41
	64,971.99
Principal 41
	102,866.74
Balance 41
	4,111,532.68
Interest 42
	63,386.13
Principal 42
	104,452.6
Balance 42
	4,007,080.08
Interest 43
	61,775.82
Principal 43
	106,062.91
Balance 43
	3,901,017.17
Interest 44
	60,140.68
Principal 44
	107,698.05
Balance 44
	3,793,319.12
Interest 45
	58,480.34
Principal 45
	109,358.39
Balance 45
	3,683,960.73
Interest 46
	56,794.39
Principal 46
	111,044.34
Balance 46
	3,572,916.39
Interest 47
	55,082.46
Principal 47
	112,756.27
Balance 47
	3,460,160.12
Interest 48
	53,344.14
Principal 48
	114,494.59
Balance 48
	3,345,665.53
Year 4 Only – Interest
	749,246.44
Year 4 – Cumulative Interest
	4,132,254.05
Interest 49
	51,579.01
Principal 49
	116,259.72
Balance 49
	3,229,405.81
Interest 50
	49,786.67
Principal 50
	118,052.06
Balance 50
	3,111,353.75
Interest 51
	47,966.7
Principal 51
	119,872.03
Balance 51
	2,991,481.72
Interest 52
	46,118.68
Principal 52
	121,720.05
Balance 52
	2,869,761.67
Interest 53
	44,242.16
Principal 53
	123,596.57
Balance 53
	2,746,165.1
Interest 54
	42,336.71
Principal 54
	125,502.02
Balance 54
	2,620,663.08
Interest 55
	40,401.89
Principal 55
	127,436.84
Balance 55
	2,493,226.24
Interest 56
	38,437.24
Principal 56
	129,401.49
Balance 56
	2,363,824.75
Interest 57
	36,442.3
Principal 57
	131,396.43
Balance 57
	2,232,428.32
Interest 58
	34,416.6
Principal 58
	133,422.13
Balance 58
	2,099,006.19
Interest 59
	32,359.68
Principal 59
	135,479.05
Balance 59
	1,963,527.14
Interest 60
	30,271.04
Principal 60
	137,567.69
Balance 60
	1,825,959.45
Year 5 Only – Interest
	494,358.68
Year 5 – Cumulative Interest
	4,626,612.73
Interest 61
	28,150.21
Principal 61
	139,688.52
Balance 61
	1,686,270.93
Interest 62
	25,996.68
Principal 62
	141,842.05
Balance 62
	1,544,428.88
Interest 63
	23,809.95
Principal 63
	144,028.78
Balance 63
	1,400,400.09
Interest 64
	21,589.5
Principal 64
	146,249.23
Balance 64
	1,254,150.86
Interest 65
	19,334.83
Principal 65
	148,503.9
Balance 65
	1,105,646.96
Interest 66
	17,045.39
Principal 66
	150,793.34
Balance 66
	954,853.62
Interest 67
	14,720.66
Principal 67
	153,118.07
Balance 67
	801,735.55
Interest 68
	12,360.09
Principal 68
	155,478.64
Balance 68
	646,256.91
Interest 69
	9,963.13
Principal 69
	157,875.6
Balance 69
	488,381.31
Interest 70
	7,529.21
Principal 70
	160,309.52
Balance 70
	328,071.79
Interest 71
	5,057.77
Principal 71
	162,780.96
Balance 71
	165,290.83
Interest 72
	2,548.23
Principal 72
	165,290.5
Balance 72
	0.33
Year 6 Only – Interest
	188,105.65
Year 6 – Cumulative Interest
	4,814,718.38

Assumptions

• Land availability
• Consistent market conditions

Annexure

Supplier quote for poultry equipment

Now, over to you…

Are you currently writing a poultry farm proposal?

Do you have plans for expansion or diversification of your poultry business?

Either way, I’d be interested to hear from you.

*Remember: print off the PDF by clicking the button at the start…

And then,

Leave me a comment below.