Layers and Village Chicken Farming

1.0 CO-OPERATIVE DESCRIPTION

The co-operative is new and was recently Registered with the Registrar of Societies. The idea for
this Project Proposal emanated from the desire to secure funds to carry out the operation of the
intended business of layers and village chicken farming.

1.1 Mission
To provide high-quality eggs and village chickens while improving the lives and livelihood of
Kabwe populace through job creation.

1.2 Our Goals

 To increase the production of eggs and village chickens.

 To lay emphasis on the vertical integration of the production and to achieve added value.

1.3 Objectives

 To establish long-term planning for the benefit of the consumers and make more profit.
 To successfully meet the challenges and demands of the domestic market.
 To seek transparency in the structure, operation and production of the co-operative.

1.4 Products and Services

TUJATANE MULTIPURPOSE CO-OPERATIVE is committed to Egg production and village

raising chickens for Zambia’s market.

These are the areas we will concentrate on in our layers and village chicken farms. If need arises,
we will definitely add more poultry produce to our list;

 Raising, processing and marketing chickens on a commercial level.

 Eggs production
 Roaster chicken production
 Fryer chicken production
 Cornish hen production

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1.5 Legal Status

The Co-operative is registered under the Patents and Company Registration Agency (PACRA)
and will comply with all the necessary rules and regulations that guide the operations of
Companies in Zambia as contained in the Act.

2.0 EXECUTIVE SUMMARY

TUJATANE MULTIPURPOSE CO-OPERATIVE eggs and village chicken business will be

established to meet the eggs and village chicken demand in the community. It will be located in
Mukobeko area in Kabwe district of Zambia. The main economic significance of the business is
to contribute towards narrowing down the product demand-supply gap deficit in Zambia as well
as the supply of proteins and micro nutrients for feeding the teeming population of central
province and Zambia at large. The business would be managed by the Co-operative Members.

2.1 Our Business Structure

Tujatane Multipurpose Co-operative is owned and managed by its local members from
Mukobeko compound, Kawama and K-30. The Co-operative intends starting a village and layers
chicken business in Mukobeko, and hopes to grow big in order to compete favourably with
commercial poultry farms in the poultry industry in the country.

We are aware of the importance of building a solid business structure that can support the picture
of the kind of world class business we want to own. This is the reason why we are committed to
only hire the best hands within our area of operations.

We will ensure that we hire people that are qualified, hardworking, and creative, result driven,
customer centric and are ready to work to help us build a prosperous business that will benefit all
the stake holders (the owners, workforce, and customers).

3.0 INDUSTRY ANALYSIS

Village chicken farming is a method of chicken farming where the chickens, for at least a good
part of the day, are allowed to roam freely outdoors, rather than being confined in an enclosure
for 24 hours each day as obtainable in a standard poultry farm.

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Generally, in most chicken range farms, the outdoors ranging area is fenced, in so doing, making
the area an enclosure, though, village chicken farming systems usually offer the opportunity for
extensive locomotion and sunlight prevented by indoor housing systems.

Chicken meat which is in the class of white meat is generally consumed in all parts of the world
and it is indeed very sweet and healthy.

The Chicken and Turkey Meat Production industry includes free range chicken farms that raise
chickens basically for meat production. Downstream meat processors and food producers supply
farmers with chicks, feed and payment, according to contractual agreements. Revenue is
recorded in the final prices that free range chicken farmers receive per average weight of live
chicken.

The village chicken farming line of business in recent time has experienced positive trends in
demand for chicken meat. Of course, increasing health consciousness among meat consumers
has boosted consumption of white meat such as turkey and chicken, which is also more
affordable than beef or pork.

Going forward, the industry will continue to enjoy appreciable growth and village chicken
farmers will keep smiling to the bank. Falling input prices will enable village chicken farmers to
increase production volumes; on the other hand, many farms will consolidate to gain the benefits
of economies of scale.

If you are looking towards leveraging on the agriculture industry to generate huge income, then
one of your best is to start a village chicken farming business and concentrate on the rearing and
sale of chickens and eggs. One thing is certain about starting a village chicken farming business.

3.1 Nature of Participants

The participants in this industry ranges from other local farming in different parts of this country
and also importers of the product. The participants of this industry are all after which supply type
would bring profit.

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4.0 MARKET ANALYSIS

 Market Trends

The Chicken Meat Production industry and village chicken farming business has greatly
benefited from campaigns advertising the health benefits of chicken meat and eggs as a good
source of protein. No doubt, the increased demand of chicken and eggs from households and
food related businesses and of course the growing popularity of specialty and processed and
canned chicken meat have rapidly improved revenue growth for the industry. In the face of this
growth, profit margin has suffered from rising feed costs and also regulations regarding animal
welfare.

As a matter of fact, one of the new trends is that with the recent advancement in technology,
village chicken farmers can now comfortably monitor the flow of their chickens within the set
perimeters / range as required by the regulatory authority, and they can as well successfully
predict and produce the quantities of chickens or even eggs per time. This has indeed helped
them in proper planning and budgeting for the business.

4.1 Target Market

Naturally, the target market of those who are the end consumer of village chicken farm produce
and also those who benefit from the business value chain of the village chicken farming business
is all encompassing; it is far reaching.

Every household consumes produce from village chicken farms be it chicken or eggs. So also,
almost all hotels and fast restaurants sell chicken meat and eggs. In essence a village chicken
farmer should be able to sell his or her chickens and eggs to as many people as possible.

In view of that, we have positioned our business to attract consumers of chickens and eggs not
just in Kabwe alone but also other parts of the country. We have conducted our market research
and survey and we will ensure that we meet and surpass the expectations we set for the business.

Below is a list of the people and business that we will market our chickens and eggs to;

 Households

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 Individuals
 Hotels
 Restaurants
 Fast food eateries
 Agriculture merchants
 Vending (NGOs)

4.2 Buying Behavior

As a new business that is just starting, also considering the location of our business, we will be
selling basically on cash but might consider giving credits to individual who purchase in large
quantity either for consumption or resale.

4.3 SWOT Analysis

TUJATANE MULTIPURPOSE CO-OPERATIVE does not intend to launch out with trial and
error hence the need to conduct a proper SWOT analysis. We know that if we get it right from
the onset, we would have succeeded in creating the foundation that will help us build a standard
village chicken farming co-operative that will favourably compete with leading village chicken
farms and commercial poultry farms in Kabwe district and in the rest part of the country.

We engaged the services of a core professional in the area of business consulting and structuring
to assist our organization in building a well-structured village chicken farm that can favourably
compete in the competitive commercial village chicken farms in Kabwe.

Part of what the team of business consultant did was to work with the management of our
organization in conducting a SWOT analysis for TUJATANE MULTIPURPOSE CO-
OPERATIVE. Here is a summary from the result of the SWOT analysis that was conducted on
behalf of the Co-operative:

Strength:

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Our strength as a Co-operative is the fact that we have healthy relationships with loads of major
players (agriculture merchants) in the industry; both suppliers of poultry feeds and medications
and buyers of chickens and eggs within and outside of the Kabwe district.

Weakness:

Our weakness could be that we are new in egg production and village chicken farming in Kabwe,
and perhaps it might take us sometime to attract big time customers in the industry. We are
aware of this and from our projection we will overcome this weakness with time and turn it to a
major advantage for the business.

Opportunities:

The opportunities that are available to us as a standard village chicken rearing cannot be
quantified, we know that there are loads of households, and businesses such as hotels and fast-
food restaurants that can’t do without daily supply of chicken meat. We are well positioned to
take advantage of this opportunity

Threat:

Some of the threats and challenges that we are likely going to face when we start our own village
chicken farming business are global economic downturn that can impact negatively on household
spending, bad weather cum natural disasters (draughts, epidemics), unfavourable government
policies and the arrival of a competitor (a commercial farm that engage in the rearing chickens
and other birds) within same location. There is hardly anything we can do as regards this threats
and challenges other than to be optimistic that things will continue to work for our good.

5. SALES AND MARKETING STRATEGY

 Sources of Income

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The Co-operative ventures in village chicken farming and egg production line of business for the
purpose of maximizing profits hence we have decided to explore all the available opportunities
within the industry to achieve our corporate goals and objectives.

Below are the sources we intend exploring to generate income for TUJATANE
MULTIPURPOSE CO-OPERATIVE:

 Raising, processing and marketing chickens on a commercial level.

 Egg production
 Roaster chicken production
 Fryer chicken production
 Cornish hen production

7. SALES FORECAST

Going by the market research and survey conducted, we were able to discover that the sales
generated by a village chicken farming and egg production business depends on the size of the
farm and of course the size of their marketing network.

We have perfected or sales and marketing strategies and we are set to hit the ground running and
we are quite optimistic that we will meet or even surpass our set sales target of generating
enough income / profits from the year of operations and build the business from survival to
sustainability within the shortest period of time.

We have been able to critically examine the village chicken farming and egg production business
and we have analysed our chances in the industry and we have been able to come up with the
following sales forecast. The sales projections are based on information gathered on the field and
some workable assumptions as well with respect to the nature of village chicken farming and egg
production business that we run.

 Marketing Strategy and Sales Strategy

We are quite aware that the reason why some village chicken farming business hardly make
good profits is their inability to sell off their chickens and eggs as at when due.

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Our sales and marketing team will be recruited based on their vast experience in the village
chicken farming line of business and they will be trained on a regular basis so as to be well
equipped to meet their targets and the overall business goal of TUJATANE MULTIPURPOSE
CO-OPERATIVE.

Over and above, we have perfected our sale and marketing strategies first by networking with
agriculture merchants and businesses that rely on daily supply of chickens and eggs from the
chicken meat production industry who are likely to become our customers.

In summary, Tujatane Multipurpose Co-operative will adopt the following strategies in

marketing our commercial farm produce;

 Introduce our business by sending introductory letters alongside our brochure to stake
holders in the agriculture industry, households, hotels and restaurants and agriculture
produce merchant et al.
 Advertise our business in agriculture and food related magazines and websites
 List our village chicken farming and egg production business on yellow pages ads
 Attend related agriculture and food expos, seminars, and business fairs et al
 Leverage on the internet to promote our business
 Engage in direct marketing
 Encourage the use of Word-of-mouth marketing (referrals)

8. PUBLICITY AND ADVERTISING STRATEGY

Any business that wants to grow beyond the corner of the street or the city they are operating
from must be ready and willing to utilize every available means (both conventional and non -
conventional means) to advertise and promote the business. We intend growing our business
which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and
to create a corporate identity for our village chicken farming and egg production business. Below

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are the platforms we will leverage on to boost our product brands and to promote and advertise
our business;

 Place adverts on community-based newspapers, radio stations and TV stations.

 Encourage the use of word-of-mouth publicity from our loyal customers
 Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook,
 Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our
business.
 Distribute our fliers and handbills in target areas in and around our neighbourhood
 Advertise our business in our official website and employ strategies that will help us pull
traffic to the site
 Brand all our official cars and trucks and ensure that all our staff members and
management staff wear our branded shirt or cap at regular intervals.

9. OUR PRICING STRATEGY
Some of the factors that will help you sell your chickens and eggs at the right price that will
guarantee that you make profits is dependent on your strategy while some of the factors are
beyond your control.

For example, if the climatic condition is unfavourable and if there are natural disaster in the
location where you have your village chicken farming and egg production project, then it will
directly affect the prices of your chicken and eggs.

Over and above, if you want to get the right pricing for your chickens and eggs, then you should
ensure that you choose a good location for the project, choose a good breed that will guarantee
bountiful harvest, cut the cost of running your project to the barest minimum and of course try as
much as possible to attract buyers to your project location as against taking your chickens and
eggs to the market to source for buyers; with this, you would have successfully eliminate the cost
of transporting the goods to the market and other logistics.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of
customers for our chickens and eggs is to sell them at competitive prices hence we will do all we

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can to ensure that the prices of our chickens and eggs of all sizes are going to be what other
respective farmers and commercial poultry farmers would look towards beating.

 Payment Options

The payment policy adopted by the Co-operative, is all inclusive because we are quite aware that
different customers prefer different payment options as it suits them but at the same time, we will
ensure that we abide by the financial rules and regulation of Zambia.

Here are the payment options that Tujatane Multipurpose Co-operative will make available to
her clients;

 Payment via bank transfer

 Payment with cash
 Payment via credit cards / Point of Sale Machines (POS Machines)
 Payment via online bank transfer
 Payment via check
 Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make
payment for the purchase of chickens and eggs without any stress on their part. Our bank account
numbers will be made available on our website and promotional materials to clients who may
want to deposit cash or make online transfer for our chickens and eggs.

10. START UP EXPENDITURE (BUDGET)

When it comes to calculating the cost of starting a village chicken and egg production farm, there
are some key factors that should serve as a guide. The breeds of chicken and numbers of chicken
to be raised in the farms determines the total cost of setting up the business.

Besides, in setting up any business, the amount or cost will depend on the approach and scale
you want to undertake. If you intend to go big by renting / leasing a big facility, then you would
need a good amount of capital as you would need to ensure that your employees are well taken
care of, and that your facility is conducive enough for workers to be creative and productive.

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This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any
difference in prices would be minimal and can be overlooked. As for the detailed cost analysis
for starting a village chicken farming business; it might differ in other countries due to the value
of their money.

Generating Funds / Start up Capital for TUJATANE MULTIPURPOSE CO-OPERATIVE

The Co-operative seeks to secure funding – start-up capital from the following sources:

 Government Grants through CDF

 Securing a loan from lending Institutions
 Funding from NGOs

11. Sustainability and Expansion Strategy

The Co-operative has a projection of attaining one million Kwacha income cash flow in three
years’ time and this lies in the number of loyal customers that they have. The business can grow
due to capacity and competence of the co-operative members, their investment strategy and the
business structure. If all of these factors are missing from a business (company), then it won’t be
too long before the business close shop.

One of our major goals of starting village chicken and egg production project is to build a
business that will survive off its own cash flow without the need for injecting finance from
external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our
chickens and eggs a little bit cheaper than what is obtainable in the market and we are well
prepared to survive on lower profit margin for a while.

TUJATANE MULTIPURPOSE CO-OPERATIVE will make sure that the right foundation,
structures and processes are put in place to ensure that our staff welfare are well taken of. Our
organization’s corporate culture is designed to drive our business to greater heights and training
and re-training of our workforce is at the top burner.

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12. OPERATIONAL PLAN

For us to manage this project prudently we provide feed to our village chickens using a home-made feed
formula to cut on the unnecessary costs of production. We use maize bran which is supplied by local
people with hammer mills, maize and soya beans. However, for the layer chickens we will be buying
already manufactured feed.

To speed up the chick production we collect eggs laid by the hens and take them to our local incubation
service provider and in cases where the hens are allowed to incubate the eggs, we grab the chicks after
two weeks of hatching and put them in our locally made brooder.

Capital Investment, Direct materials, supplies and costs

Cost Item Quantity Unit Cost (K) Total Amount (K)

Direct costs
Chicks – Layers
Chicks – village chickens
Incubator
Brooder
Feeders
Drinkers
Feed
Poultry farm
Poultry equipment- others
Sub total
General Costs (Overheads)
Labour
Selling and distribution
Utilities
Depreciation
Sub total

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Total Operating Costs

FINANCIAL PLAN

Our simple cash flow statement for the period ended 31 st December, 2023

Net cash flow from operating activities K175, 950

Investing activities
Receipts from sale of fixed assets K142, 500

K318, 450
Financing activities
Capital K138,250
Increase in cash K180, 200

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BUDGET ESTIMATES:

DESCRIPTION QUANTITY AMOUNT

K
Incubator
Brooder
Gen set
Poultry house construction
Feed
Chicks
Chicken wire
Fence wire
Poles for fence
Drinkers
Feeders
Infra-red bulbs
Cables
Wages
Transport

13.0 FINANCIAL PROJECTIONS

PROJECTED SALES, INCOME IN FOUR YEARS

2023 2024 2025 2026

Sales K280, 200 401,480 520,096 640,044

Expenses (138, 250) (108,250) (98, 250) (98, 250)

Tax 8,406 12,044 15,602 19,201

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Net profit: 133,544 281,186 406,240 522,593

14. CONCLUSION

Like several other agribusinesses that have great potentials for both scale and profitability
starting a village chicken rearing in Zambia or across Africa is a great agribusiness to start up if
executed at the right scale. As we know that chicken rearing in Zambia is one of the most
profitable agribusinesses to venture into, and as such, investing in the agribusiness is a smart
decision to make, especially with its local demand and very high export potentials.

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15. APPENDICES

CONTACT INFORMATION

In case of questions, requests for quotations or ideas for further improvements, please contact:

Customer Care
Tujatane Multipurpose Co-operative
House No. 189 Mukobeko T/ship
Kabwe

Cell: +260 978989321

E-mail: [email protected]

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