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

May 5, 2021 by Temi Cole 2 Comments

Poultry Growing Equipment Quote in SA Rand 2021

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.

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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

Poultry Growing Equipment Quote in SA Rand 2021

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.

You may also be interested in:
« 7 Poultry House Designs From Farms in the Philippines (2021)
« Philippines: Is Poultry Farming Feasible? (Profit & Cost Study 2021)

Filed Under: AgriBusiness, Poultry Farming

Reader Interactions

Comments

  1. nngirazi says

    June 18, 2021 at 6:48 am

    good day

    this article cannot be downloaded as pdf.

    kindly help please

    Reply
    • Temi Cole says

      June 18, 2021 at 10:00 am

      Hello,

      Thanks for letting me know – all sorted now. Sorry about the hitch.

      Keep me posted.

      Speak soon,

      Temi

      Reply

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