PROJECT PROPOSAL FOR

POULTRY FARMING
INTRODUCTION :
Poultry meat are important sources of high quality proteins, minerals and vitamins to
balance the human diet, specially developed breeds both broiler and layer are now
available with an ability of quick grown and high feed conversion efficiency.
Depending on the farm size poultry farming can be main source of family income or
can provide subsidiary income and gainful employment to farmers through out the
years. Poultry farming both layer and broiler shall provide income to the members by
taking active participation through the cooperative to earn their livelihood. Poultry
manure has high fertilizer value and be used in agriculture farming for increasing high
yield of all crops.

Broiler farming is the art and science of rearing meat type of chicken of either sex from
day old state to about 56 days/8 weeks of age. The birds weigh on an average 1.5 kg
and are sold either live or dressed. Feed conversion efficiency is better in broiler type of
chicken. The quick turn over and lesser risk involved compared to other farming make
broiler rearing more attractive.

SCOPE :
The inhabitant of the area i.e. Kohima District is almost 100% schedule tribe
population. The food habit of the people is non vegetarian. Their food habit forced them
to import meat, fish, egg etc. from neighboring state to meet the local demand. This has
effected the state economy as a bulk of the money goes out of the state. To check the
outflow of money and increase the inflow by doing farming and increasing production
which will make them to export the products in neighboring state to strengthen the state
economy. The State Veterinary Department shall provide all possible guidance and
support for the farming .

OBJECTIVE :-
Nagaland is basically an agricultural state. Majority of the population engaged in the
primitive activity of shifting cultivation which is extensively practiced in the entire
state. This old fashioned farming does not produce good return for the farmer nor does
it promise economic development for the farmer and the state in general. The per capita
consumption of poultry meat in India is about 150 gms, however it is much higher in
Nagaland. While according to 2000 census, there are about 1000000 poultry in
Nagaland which is far from satisfying. As a result, about 50% of the chickens are
imported from outside the state. Hence development of more poultry farming should be
taken up.

MARKET POTENTIALITY:-
Poultry keeping for commercial production of egg and meat, although of recent origin,
is one of India’s most innovative industries, having evolved from a backyard to a
vertically integrated and organised form. It has achieved unprecedented growth during
the last 30 years. Its development has not only been in size but also in productivity,
sophistication and quality. This business has also given rise to many subsidiary
industries such as compounded feed, equipment, pharmaceuticals and biological. With a
turnover of Rs.6,000 crores, the industry provides employment to five million persons.
Poultry and related products, valued at Rs. 3,500 crores, account for more than one
percent of India’s total CNP and more than 0.3 percent of the CNP realised from live
stock sector.

India is sixth in table egg production and 22 nd in poultry meat. The India egg industry
reportedly achieved a growth rate of 10 percent during the eighties. Broiler industry,
although late, in the scene registered 20 percent growth rate during the same period. In
spite of unfavorable conditions prevailing in early nineties such as the increasing feed
prices and severe outbreak of Cumboro and other diseases, the production of 28000
million eggs and 280 million broilers during 1992 was an all time high and signified
five and 70 fold increase respectively over those of 1971. Consistent with increase in
the productivity, the per capita availability also increased to 33 eggs and 434 gms. of
meat. Although it seems much less compared to 180 eggs and nine kg. of meat to meet
the nutritional requirement, the achievement has been substantial as it signified a three
fold increase over those of 1971 during the last 20 years.

Indian poultry industry is primarily chicken-oriented. Chickens account for more than
90 percent of the 310 million poultry population in India. Chicken egg and meat dishes
are also popular compared to other species of poultry. Chickens therefore, have
received more attention in India’s planning, research and development process. Today,
Indian chicken industry is not only vibrant and self reliant but also one of the best in the
world.

The total requirement of broiler of the district is about 100 tones in normal case while
an additional requirement of over 50 to 60 tones during festival period which is not
fulfilled by local production and the major parts of the requirements come from outside
the state of Nagaland. However, the production capacity of the proposed project is
approximately 14 MT.(at 100% capacity utilization), the marketing for which will not
be a problem.
FINANCIAL ASPECTS

TOTAL COST OF THE PROJECT

PARTICULARS AMOUNT(Rs.)

1. Land (owned by the applicant, value taken as nil

for projection) --
2. Poultry Shed 2,30,000.00
(As per statement)
3. Machinery & Equipments 15,000.00
(As per statement)
4. Initial Purchase of chicks 50,000.00
(As per statement)
5. Margin Money for Working Capital
(One month) 55,500.00

T O T A L 3,50,500.00
Say, 3,50,000.00

MEANS OF FINANCE :

1. Promoter’s contribution 50,000.00

2. Loan from NIDC 3,00,000.00

T O T A L 3,50,000.00

STATEMENT OF CIVIL CONSTRCTION

Particulars Amount (Rs.)

1. Poultry shed 30 x 50 = 1500 sq.ft.x 2

by using locally available materials,
CGI sheet roofing and cement concrete floor
@ Rs. 150/- per sq.ft. 2,25,000.00

Add. Electrification 5,000.00

2,30,000.00
DETAILS OF MACHINERIES AND EQUIPMENTS :

PARTICULARS NO. RATE AMOUNT(Rs.)

1. Chicks Feeding Trays 100 50/- 5,000.00

2. Drinkers 100 100/- 10,000.00

TOTAL 15,000.00

INITIAL PURCHASE OF CHICKS (one cycle of 2 months) :

PARTICULARS AMOUNT(Rs.)

1. Chicks (1500 Nos. @ Rs. 25/- each ) 37,500.00

2. Transportation & other charges ( L.S. ) 12,500.00

TOTAL 50,000.00

RECURRING COST : ( Per Month )

PARTICULARS NO. RATE AMOUNT(Rs.)

1. Raw Materials
a) Chicks Feed 18 bags 2000/- 36,000.00
b) Transportation of feed (L.S) 2,500.00
c) Medicines etc. (L.S) 1,500.00
40,000.00

2. Staff & Labour

I) Manager 1 self - Nil-
II) Technical
a) Supervisor/Vet. Asstt. 1 3500/- 3,500.00
(part-time)
b) Skilled Workers 1 3500/- 3,500.00
c) Unskilled workers 2 2500/- 5,000.00
12,000.00
3. UTILITY (PER MONTH) :
a) Power 600 KWH @ 2.5 per KWH 1000.00
b) Water (L.S.) 500.00
1,500.00

4. OTHER EXPENSES (PER MONTH) :

a) Printing, stationary etc. 100.00
b) Travelling Expenses , 1,000.00
c) Repairs & Maintenance 500.00
d) Insurance 400.00
2,000.00

5. DETAILS WORKING CAPITAL (PER MONTH) :

a) Raw Materials 40,000.00
b) Salary & Wages 12,000.00
c) Utility 1,500.00
d) Other Expenses 2,000.00
55,500.00

DEPRECIATION COST

1. Shed @ 5% 11,500.00
2. Machinery & Equipments @ 10% 1,500.00
13,000.00

SALES REALISATION (at 100% capacity Utilisation)

Total Production in 6 cycles 7,650 Nos.

(after lessing 15% mortality)

Average live weight 1.5 Kg.

Rate per Kg. Rs. 125/-

Total sales 14,34,375.00

Note : - Assuming 5% in rates will be increased every subsequent years.

LOAN REPAYMENT SCHEDULE & AVERAGE CALCULATION OF
INTEREST

Principal – 3,00,000.00

Particulars 1st yr. 2nd yr. 3rd yr. 4th yr. 5th yr.
Principal 3,00,000.00 2,40,000.00 1,80,000.00 1,20,000.00 60,000.00
Less : repayment 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00
2,40,000.00 1,80,000.00 1,20,000.00 60,000.00 --
Interest 28,500.00 22,800.00 17,100.00 11,400.00 6,900.00

PROJECTED PROFITABILITY STATEMENT

(Rs. in lakhs)
st nd rd
Sl.No. Particulars 1 yr. 2 yr. 3 yr. 4th yr. 5th yr.
1. Sales 14.35 15.06 15.81 16.60 17.43
2. Cost of
production
a. Raw materials 4.80 5.04 5.29 5.55 5.82
b. Salaries 1.44 1.51 1.58 1.65 1.73
c. Utilities 0.18 0.20 0.22 0.24 0.26
d. Other expenses 0.24 0.26 0.28 0.30 0.32
e. Chicks 3.00 3.15 3.30 3.46 3.63
9.66 10.16 10.67 11.2 11.76
3. Gross profit 4.69 4.90 5.14 5.40 5.67
Depreciation 0.13 0.13 0.13 0.13 0.13
@15%
Interest 0.29 0.23 0.17 0.11 0.07
4. Net profit 4.27 4.54 4.84 5.16 5.47

REAK-EVEN-ANALYSIS :
FIXED COST COMPONENTS AMOUNT(Rs. In lacs )
( Based on 1st Year )
1. Salary & Wages (40%) 0.57
2. Other Expenses (40%) 0.16
3. Depreciation cost 0.13
4. Interest 0.29
1.15

BREAK-EVEN-POINT :
= Fixed Cost X 100
Fixed Cost + Profit

= 21.22%
 PROJECT PROPOSAL

FOR

POULTRY FARMING

NAME & ADDRESS OF THE APPLICANT

SHRI BURAKUM AO
Padam Pukhuri,
Dimapur – 797112 : Nagaland