THE

BUSINESS
PROPOSAL
FOR
EMUSA SDA
WOMEN’S GROUP

0
 EXECUTIVE SUMMARY
The EMUSA SDA WOMEN’S GROUP village chicken market is the result of a spectacular boom
in demand for chickens that are healthy, free from Genetically Modified Organisms (GMO)
products. EMUSA SDA WOMEN’S GROUP poultry will produce and market high quality big
village chickens of between 2 to 2.3 kg live weight.

With the population of 442, 693, Chasefu and Lundazi offers a huge market for EMUSA SDA
WOMEN’S GROUP CLUB whose estimated output of village chickens will be 3000, during the
first year. EMUSA SDA WOMEN’S GROUP realizes the nutritional value that chickens have on
human diet and as such will sale its village chickens at reasonably low prices. This will make
EMUSA SDA WOMEN’S GROUP village chickens affordable by many. This will be a great
incentive to many customers but a slap on the face of the few competitors that exist in the proposed
market. The low prices will be attainable through EMUSA SDA WOMEN’S GROUP innovation
of making its own stock feed out of the abundant, reasonably cheap and mostly organically grown
raw materials readily available in Chasefu. The use of locally organically grown ingredients such
as maize, sunflower and soya beans will not only improve the nutritional value of EMUSA SDA
WOMEN’S GROUP village chicken but also reduce the cost of production by about 40%.
Consumers will therefore have a double benefit when they buy EMUSA SDA WOMEN’S GROUP
village chickens and eggs as follows:-
i. They will enjoy low prices of about K60.00 per bird during the first year as compared
to competitors ‘prices of K30, 000 per bird.
ii. EMUSA SDA WOMEN’S GROUP village chickens will be free from artificial
ingredients and boosters that end up compromising the nutritional value of the chicken
meat and poses as a health hazard to consumers due to some long-term side effects.

EMUSA SDA WOMEN’S GROUP projected sales per Quarter during the first year (2023) are as
follows:-

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales (30, 400 less 5% MR K30, 000. K50,000 K1500,000 K250, 000

The cost of production in terms of variable and fixed costs for the output of 500 birds has been
estimated at K30,000 and the capital costs at K30,000. EMUSA SDA WOMEN’S GROUP will
take advantage of the capital resources amounting Youth empowerment fund. EMUSA SDA
WOMEN’S GROUP will therefore only require a working capital of K30,000 to produce the first
500 village chickens. EMUSA SDA WOMEN’S GROUP has proposed to finance this working
capital by means of obtaining a loan from CDF.

As can be seen, EMUSA SDA WOMEN’S GROUP growth will be organically driven through ploughing
back of profits and this will be the GREATEST MOTIVATING factor for the business.

VISION

To become a leading Poultry Farm in Chasefu and Eastern as whole.

1
MISSION

To provide healthy and high quality village chickens and eggs.

OBJECTIVES

▪ Commencement of production by 15th August 2023

▪ Constructing two (2) more blocks of Poultry house by Dcember21st 2023.
▪ Increasing output to 800 by 31st December, 2023.

INDUSTRY BACKGROUND
Zambia’s national economy has for a long time depended on the mining industry. Copper and
cobalt reserves have been the most important factor to Zambia’s economy. However, the major
challenge to this industry is that copper is subject to the constant fluctuation and uncertainty
international market prices. More importantly, it is estimated that, at the ongoing level of
production, the nation’s economically viable copper reserves will be exhausted sooner than later.

It is for this reason that the Government of Zambia is putting much emphasis on development of
the Agricultural industry for diversification purposes. For instance between 1993 and 2006 the
investment in the agricultural sector had fallen to US&485, 301, 725 with employment level at
only 15, 117 representing only 16% of total investment in Zambia. However, the agricultural
sector has been expanding steadily from about 16% in 2006 to about 30% now. The government
has given a lot of incentives to this sector that will eventually see the sector to be the major driving
engine for Zambia’s economy. Within the agricultural sector, the government has placed a lot of
emphasis on livestock production.

The livestock subsector is an important component of the Zambian Agricultural economy. Its
importance derives from the fact that it is one of the key contributors to the national economy. For
example, using the 2009, factors based data, the sub sector contributed on an annual basis a little
over 5% of the Gross Domestic Product (GDP) between 2010 and 2011. According to the Central
Statistics Office (CSO), the livestock sub-sector is second only to the crop sub-sector under the
sub-sector contribution to the general agricultural sector, and represents an average over 13% of
agriculture’s contribution during the period under consideration.

However, it is regrettable that the livestock sector has not provided sufficient volumes and capacity
to meet the demand of teeming Zambians for protein. However, if properly managed the Poultry
industry can impact greatly on the income and quality of life of the citizenry. This is because
poultry business is a socio-economic activity whose return on investment is relatively higher than
that of other animal species and is capable of contributing significantly to the national economy.
Recently the minister of Commerce, Trade and Industry Mr. Robert Sichinga made a ministrial
statement that the current annual investment for poultry industry stood at more than US&80m and
contributing 42% of agricultural portion to the country’s Gross Domestic Product (GDP). The

2
Poultry Association of Zambia has estimated the annual output of chickens at be slightly more than
50m.

The poultry industry still has great potential for growth as the current daily demand is far much
higher than what the industry is off loading on the market on a daily basis. For instance, Ndola and
Kitwe have no major producer of Broiler chickens. There are only few individuals rearing broiler
chickens at back yards. As a result, marketers order live chickens from Lusaka, even then the
market remains unsatisfied. It is for that reason that EMUSA SDA WOMEN’S GROUP endeavors
to bridge the gap between supply and demand in both Chasefu and Lundazi districts. Chasefu has
a population of about 62,241 and Lundazi 71, 28. The number of households for both Chasefu
and Lundazi is about 203, 689. If each household consumes five (5) chickens in a year, a total
number of 1, 018, and 445 will be required annually.

The economic future of poultry industry appears bright in many areas of Zambia, as analysists
continue to anticipate market expansion. The Government’s policy of boosting the tourism
industry in all parts of the country has a positive bearing on the growth of the poultry industry as
the hospitality industry will create such a huge market for both chicken meat and eggs. This growth
in demand for poultry products provides an opportunity for innovation and expansion in the poultry
industry. EMUSA SDA WOMEN’S GROUP is determined to seize this opportunity.

COMPETITOR ANALYSIS

The current players in the poultry industry in Chasefu and Lundazi are those rearing most chickens
at back yards and on a small scale basis to a point where the demand for village chickens remains
unsatisfied.

Competition is not so keen in Zambia’s poultry market. The reasons for this are obvious:

1 Poultry Products in their present form are not branded products. Hence, what is
essential in this respect is the effective positioning of the distribution outlets as well as
appropriate timing.

2 As a result of the substantial shortfall in supply, Zambia’s poultry market is a seller’s

market. Therefore competition in the targeted Chasefu and Lundazi market will be
quite minimal

3 Large proportions of the production are being sold through informal channels.
However, some degree of competition existed when Supermarkets of Malawi origin
were importing alot of poultry products from Malawi until when the Government
placed an embargo on such importations so as to boost the local industry.

The 1,336,693 populations for both Chasefu and Lundazi create such a huge market for EMUSA
SDA WOMEN’S GROUP poultry products. However, the failure by EMUSA SDA WOMEN’S
GROUP and other small local players in the poultry industry to cope with the ever increasing

3
demand of poultry products may attract the attention of big competitors with huge capital and
modern equipment who may pull down the prices due to economies of scale. EMUSA SDA
WOMEN’S GROUP will therefore build up capacity through continued research for other
innovations in the poultry industry that can help increase the quality and level of output. Other
resources such as qualified human resource, modern equipment and financial resources will have
to be sourced so as to scale up the level of operations in order to cope with the level of demand.

PRODUCT DESCRIPTION

EMUSA SDA WOMEN’S GROUP poultry will produce broiler chicken meat and eggs.
However, no major value additions will be done to the products in the initial stages as chickens
will be sold as live birds.

The current housing unit can house about 500 broiler chickens at once. However, the chickens
will be kept in 4 batches of 100 chickens and later increased to 400 chickens per batch with spacing
of 2 weeks between the batches. Each of the 4 batches will revolve 8 times around the production
circle in a year; therefore a total output of 8000 will be expected within the first year. This
arrangement will ensure that chickens will be on sale fortnightly. The village chickens will be
ready for marketing as from the 7th month.

To remain more competitive in the poultry industry, EMUSA SDA WOMEN’S GROUP will
endeavor to bring down the cost of raising the birds as this will have a ripple effect on the selling
cost of each bird. In Zambia, the cost of stock feed is quite high hence the high cost of both village
chickens and eggs thereby making poultry products less competitive to imported cheap products.
EMUSA SDA WOMEN’S GROUP is strategically located in Chasefu, an agricultural district that
produces a lot of maize, soya beans and sunflower which are key ingredients in the manufacture
of chicken stock feed. EMUSA SDA WOMEN’S GROUP has already discovered a formula on
how to make its own feed for the village chickens. This innovation is expected to reduce the poultry
costs by 40% and this will result in EMUSA SDA WOMEN’S GROUP chickens sold at
competitively low prices as compared to competitors.

MARKETING PLAN

Marketing Strategy

EMUSA SDA WOMEN’S GROUP marketing strategy will emanate from the quality output of
poultry products. EMUSA SDA WOMEN’S GROUP will not compromise with the quality of the
broiler chickens; the birds will be free from artificial and conventional ingredients and boosters
that affect the nutritional value of the village chicken meat and eggs from the layers. The chickens
will be raised in an environment that meets acceptable standards.

4
EMUSA SDA WOMEN’S GROUP poultry products market shall be segmented as follows:-

i. Hotels, Lodges, Restaurants and Catering Outlets

Chickens will be supplied to this market segment. Many lodges and restaurants in recent
years prefer buying live chickens as opposed to frozen dressed chickens.

ii. Hawkers/Vendors/Households

Live chickens will be sold to this market segment on a regular basis. Intact this category
will constitute a larger part of EMUSA SDA WOMEN’S GROUP market in Chasefu and
Lundazi.

Distribution Strategy

As mentioned earlier, the distribution chain in Zambia’s poultry industry tends to be short with
more than 80% of total production delivery direct to the informal trade sector. The remaining 20%
is normally distributed through a larger chain of the formal sector.

The distribution of EMUSA SDA WOMEN’S GROUP poultry product in Chasefu and Lundazi
will be as follows:-

(a) Hotels, Lodges, Motels, Restaurants, Processors, Catering outlets.

(b) Hawkers, Vendors, Households etc.

EMUSA SDA WOMEN’S GROUP will also endeavor to explore market opportunities for its
chickens and eggs in Lundazi district as it is one of the busy and hubs of business (agricultyuree)
Eastern province.

Market Size

With the total population of 133, 93 translating into about 20, 689 for both Chasefu and Lundazi,
the market is quite huge for EMUSA SDA WOMEN’S GROUP poultry product.

At the projected output of 900 broiler chickens during the first year, demand by about 203, 689
households is far too huge.

As the annual growth rate of the population of Eastern Province is at 3.6%, therefore, demand for
poultry products is expected to grow in the same proportion.

Pricing strategy

The innovation that EMUSA SDA WOMEN’S GROUP is adopting of making its own chicken
feed from locally grown raw materials will greatly reduce the cost production by about 40%.
EMUSA SDA WOMEN’S GROUP will therefore offer its market offerings at competitively lower

5
prices. This will encourage Hawkers, Market traders and households to buy directly from EMUSA
SDA WOMEN’S GROUP poultry farm.

As EMUSA SDA WOMEN’S GROUP scales up its output of poultry products in an attempt to
bridge the gap between demand and supply, prices will be expected to come down even further in
a long run as the business starts to enjoy economies of scale.

OPERATIONS PLAN

Operational Details

Village chicken production involves the raising of day-old chicks (DOC) from 1 – 150 days. The
chicks should be reared in such a way as to achieve an excellent meat to carcass ratio. The initial
proposed broiler production capacity is 500 to be kept in 4 batches of 100 birds each with the
spacing of 2 weeks between the batches The circle of batches will revolve 8 times in a year thereby
giving a total of 1000 chickens, however the number on chickens per batch will be increased to
500 within the first year. Therefore, the expected output within the first year is expected to be
1000 village chickens.

There are some essential requirements for growing village birds successfully. Most of these
equipment are already available. The requirements include:

• Adequate housing

• Excellent brooding equipment

• Feeding equipment

• Drinkers

• Braziers

• Miscellaneous equipment will include:-

i. Thermometer

ii. De-beaking scissors

Feeders

In deciding which feeder should be used, it is important to put into consideration the type and size
of chickens that is being reared. Basically, there should be:

• Feeder for grown broiler birds

• Feeder for day-old chicks (DOC)

6
Housing

The first requirement for growing poultry is adequate housing. This is because broiler production
is essentially a chick brooding operation. Hence the house should contain necessary equipment so
that such factors as temperature, moisture, how light could be controlled easily. It should also
provide for efficient installation and operation of brooding, feeding, watering and other equipment.

A poultry building should have the following general features:

• Excellent ventilation, or movement and sufficient lighting

• Optimal use of floor space

• Should contain all necessary equipment such as brooding, feeding, watering and other
equipment for efficient operation

• The house will be sited on a well-drained soil

• Floor for the poultry house must be concrete and littered

Three types of houses are utilized in the commercial production of broiler. Thus birds are
transferred to the various houses depending on their age in the production cycle. These houses
include:

• Brooder house

• Grower house

• Deep litter house

Brooder house

This is the house where a day-old chick stays until the first 2 weeks of the chick’s life. Brooder
house must be maintained properly and kept warm always. Installation of brooder guards to
confine chicks, flat feeders, drinks and feed mash must always be available.

Grower house

After the 2 weeks, chicks are transferred to the grower house. The purpose of this transfer is to
protect them and make them comfortable so that they can develop optimally. A well ventilated
housing accommodation will facilitate the growth of chickens.

7
Deep litter house

The birds are transferred to the deep litter house after 6th month in the grower’s house. In cases of
village chicken production, this is where the birds will domicile until they reach the market weight
of about 1.6kg in 6 – 7 months.

Houses should be capable of maintain appropriate temperature during the entire growing cycle,
regardless of the outside temperature. Colder climates require additional insulation, whereas
proper air speed becomes crucial in a hot environment. Most broiler houses are built 40 feet wide,
usually with two lines of lighting fixtures arranged so that all areas of the floor are well lit. Low
wattage bulbs are placed 8 – 10 feet above the floor to provide 0.5 to 1.0 foot candle light at bird
level.

Poultry house measurements (200 broilers)

Length 8m Breadth 3m
Front 2m behind 1.8m

Therefore, for each batch of 250 birds, 2 rooms will be required and for 4 batches 8 rooms will be
required. The 8 rooms capable of housing 1000 broiler chickens in 4 batches of 200 chickens per
batch are readily available. However, additional 8 rooms will be required by the third Quarter of
the first year so as to double the output to 400 per batch. The expected output by the end of 2023
is projected at 1000

Raw Material Requirement

The basic raw materials of a typical poultry farm include:

• Feed

• Drugs

• Vaccines

Feed

The types of chicken feed to use depend on the type and stage at which chickens are, for instance:-

i. B starter mash is used to feed day-old chicks.

ii. Broiler grower mash is used to feed chickens from 3 to 4 week

iii. Broiler finisher mash is used from 4 weeks upwards.

8
All Broiler and layer feed will be bought from dealers of stock feed

Drugs

Some poultry drugs commonly used in the poultry farms are: Amprol solube powder, Tylan,
Vitadol, Vibravet soluvita stress

Vaccines

Some popular vaccines include: New Cattle disease vaccine, Coccidants vaccine, Gumboro
vaccine, Komero vaccine, Pox vaccine and Ant-CRD vaccine.

About 90% of these inputs are imported. This is partly why poultry production is highly sensitive
to foreign exchange fluctuations in Zambia.

Labour requirement

1. Poultry Handyman

The services of the full time farm handyman will be required. He should be at least a Grade 9
certificate holder. As group leader but all (members) youths will be involved. His responsibilities
will include:-

• Disease control

• Care of housing and equipment

• Feeding

• Delivery of Chickens to the market

• Mobilization of raw materials and manufacture of stock feeds

2. Marketing Officer

• Should be a holder of a Grade 12 certificate.

Duties and responsibilities shall include:-

• Preparation of budgets with guidelines from the Director and Poultry manager.

• Carrying out marketing and procurement responsibilities.

• Keeping up to date books of accounts.

9
Estimated Poultry Staff wages

The total estimated annual wage bill and allowance for the Marketing Officer and Poultry
Handyman is K500. This has been calculated based on the recently revised minimum wage by the
Government. Further most works will be done by the group members. Usually the Government
takes long to revise the minimum wage; therefore, the increment is not anticipated in the next two
years. However, EMUSA SDA WOMEN’S GROUP will consider an annual 10% pay raise on its
staff

Costing For 500 Village Chickens

STARTUP COSTS FOR THE FIRST 2 BATCHES (250 /BATCH) – 250 BROILER AND 2
BATCHES 1000 VILLAGE CHICKENS

Broilers Day old Chicks – 500 @ K9 each 4500

Feed: Starter mash – 10 bags @ K345, 3450
Grower 20 bags @ K350 7000
Finisher 20 bags @ K310 6200
21, 150
Drugs: Stress pack – 10 packs @ K100 1000
Multivitamin – 10 packs @ K200 2000
3000
Vaccines: Gumboro – 10 bottles @ K25 250
Lasota – 10 bottles @ K20 200
450
450
Equipment: Drinkers- 40 @ K60 2400
Feeders – 25 @ K150 3,750
Braizers – 10 @ K20 200
Lamps – 10 @ K30 300
Batteries – 3 @ K1200 3600
Backets – 10 @ K25 250
3,850

Washing soap – 2 pkts

Disinfectant – 4 bottles 200,
1, 550
. 20 Farm youths: Gum boots 6500
20 : Work suits 5000
20 Wages – 1 month @K500 20000
30,000

10
 Add 5% for incidentals
Grand total 30, 000

Key Suppliers

1. Day old chicks, these will be supplied by Hybrid and Rose breeders through their Nutrition
Agents.

2. Starter broiler mash, drugs and vaccines, drinkers and other ingredients for formulation of
stock feeds will be obtained from Omnia General Dealers based in Chasefu.

3. Maize bran and Sunflower cake are readily available several grinding mills of Chasefu.

4. Charcoal will be obtained from charcoal dealers who usually do some delivery services.

5. Braziers will be obtained from Hillcrest market.

6. Other requirements such as batteries, lamps, etc will be obtained from some shops within
Chasefu.

Water supply

A water well will be dug which will have abundant water to curter for all activities that require
water at the project.

DEVELOPMENT PLAN

EMUSA SDA WOMEN’S GROUP Poultry business will start with an initial 500 broiler birds to
be reared in batches of 100 with spacing of two weeks in between the batches. The number of
broiler birds per batch will gradually be doubled to 400 in the third and fourth quarter of 2024 and
the number of layers birds per batch will gradually be doubled to 500 in the third and fourth quarter
of 2024.

11
Date Type of No. Spaci Bird Total Variable Fixed Costs Total
Chickens of ng s per Chickens Costs (ZK) Costs
Batch Batc per Circle (ZK)
es h (ZK)

Jan to Mar Village 4 2 250 1000 60000 800 60800

chicken weeks

Feb to April Village 4 2 250 1000 60000 800 60800

chicken weeks

Mar to May Village 4 2 250 1000 60000 800 60800

chicken weeks

April to Jun Village 4 2 250 1000 60000 800 60800

chicken weeks

May to July Village 4 2 250 1000 60000 800 60800

chicken weeks

Jun to Aug Village 4 2 250 1000 60000 800 60800

chicken weeks

July to Sep Village 4 2 250 1000 60000 800 60800

chicken weeks

Aug to Oct Village 4 2 250 1000 60000 800 60800

chicken weeks

Sept to Nov Village 4 2 500 2000 120000 1000 121000

chicken weeks

Sept to Nov Village 4 2 500 2000 120000 1000 121,000

chicken weeks

Oct to Dec Village 4 2 500 2000 120000 1000 121,000

chicken weeks

TOT 14000 516,000 9,400 429,400

ALS

At the moment, EMUSA SDA WOMEN’S GROUP proposed poultry project has 4 big rooms and
each can accommodate 100 chickens. These rooms can therefore accommodate the arrangement
of having 4 batches of 100 chickens each with the proposed spacing of 2 weeks between batches.

12
However, the desired expansion of the business will call for additional building infrastructure and
equipment. The anticipated growth has been carefully taken care of in the table displayed below.

The table below shows the level of developmental activities for EMUSA SDA WOMEN’S
GROUP poultry during the first year (2023)

NB. The cost of raising one village chicken bird has been valued at K20.00 per bird. This

Valuation is based on the variable costs.

The developmental activities during the first year as reflected in the table above will include the
following:-

i. Increasing the number of chickens per batch from 500 to 800. This will take a gradual
process.

ii. Construction of adequate shelter to accommodate the additional 100 broiler chickens
per each batch.

iii. Procurement of adequate poultry equipment to match the number of chickens

These developmental activities will cost about K 30, 000 in terms of both variable and fixed costs.
Apart from the initial startup capital, all these activities will be financed by ploughing back of
profit.

HUMAN RESOURCE PLAN

EMUSA SDA WOMEN’S GROUP poultry shall be managed by all the women of EMUSA SDA
WOMEN’S GROUP.

Their duties and responsibilities shall include the following:-

- To oversee all operations of the business

- Shall be the link between the businesses the outsiders.

- Shall supervise the work of the Director – Operations and the marketing officer.

13
 FINANCIAL PLAN

EMUSA SDA WOMEN’S GROUP Poultry Project (December 2023)

Capital Costs

Expenditure Unit type Unit Unit Cost Cost Cost Cost Cost Quarter 4 TOTAL
Item s Quarte Quarte Quarter 3
r1 r2
Farm equipment assorted 6000
Poultry house Number 2 9000 1 1 18000
Poultry house Number 2 9,000 1 1 9, 000 18 000
(additional)
Poultry equipment assorted Lamp 23, 475 - 1, 750 1, 500 26, 725,
sum
Capital Costs 32, 732
Total

Fixed Costs

Expenditure Item Unit Unit Unit Cost Cost Cost Cost TOTAL
type s Cost Quarter Quarter 2 Quarter 3 Quarter 4
1
Charcoal Bags 30 200 100 100 200 200 600
Labour (wages) Per 2 2, 012 6, 037 6, 037 6, 037 6, 037 24, 149
month
General operation costs Quart 4 455 345 495 645 1, 940
erly
Marketing costs Lump 16 55 220 220 220 220 880
sum
Fixed Total Cost 6, 812 6, 702 6, 952 7, 102 27, 569

Variable Cost

Expenditure Item Unit Units Unit Cost Cost Cost Cost TOTAL
type Cost Quarter 1 Quarter 2 Quarter 3 Quarter 4
One Day Old Chicks number 304 4,550 25, 025 25, 025 38, 220 50, 050 138, 320

Starter mash Bags 608 180 19, 800 19, 800, 30, 240 39, 600 109, 440
000
Grower mash Bags 1, 216 55, 875 12, 292 12, 292 18, 774 24, 585 67, 944

Finisher mash Bags 1, 216 55, 875 12, 292 12, 292 18, 774 24, 585 67, 944

14
 Health care Lump Lump 1, 443, 1, 443, 1, 575, 2, 205, 6, 667,
sum sum 750 750 000 000 500
Transport costs Lump Lump 1, 500 1, 500 1, 500 1, 500 6, 000
sum sum
72, 3530 72, 353 109, 083 142, 525 396, 315

Production Cost Cost Cost Cost Cost TOTAL

Quarter 1 Quarter 2 Quarter 3 Quarter 4
Fixed costs 6, 812 6, 702 6, 952 7, 102 27, 569
Variable costs 72, 353 72, 353 109, 083 142, 525 396, 315

Add contingency 5% 3, 958 3, 952 5, 801 7, 481 21, 194

Total Production 83, 1241 83, 008 121, 837 157, 108 445, 078
Cost

Revenue

Product Unit Units Unit Cost Cost Cost Cost TOTAL

type Cost Quarter 1 Quarter 2 Quarter 3 Quarter 4
Broiler Chickens number 30, 25, 000 13700 13700 21, 000 275, 000 760, 000
400
Less mortality rate number 25,000 (6, 875) (6, 875) (1O, 500) (13, 75) (38, 000)
(5%) 1,520
Total net income 130, 625 130, 625 199, 500 261, 250 722, 000

Investment Analysis

Cash flow Cost Cost Cost Cost TOTAL

Quarter 1 Quarter 2 Quarter 3 Quarter 4
Out flow 83, 124 83, 008 121, 837 157,108 445,969
Inflow 130, 625 130, 625 199, 500 261, 250 722, 000
Net flow 47, 500 47, 616 77, 662 104, 141 276, 921

Assumptions

Feed per 100 Chickens - Starter 100 kg

15
 - 200 kg
Grower
- 200 kg
Finisher
Broilers in Quarter 1 batches 5, 500
Broilers in Quarter 2 batches 5, 500
Broilers in Quarter 3 batches 8, 400
Broilers in Quarter 4 batches 11, 000
Broiler Mortality rate 5%
Broiler marketing stage 6 to 8 weeks old
Cost per Day Old Chick 4, 550
Price per Chicken - retail 30, 000
-wholesale 25, 000
Poultry house already available 2 blocks (8 rooms)
Capital costs to be incurred 24, 725
Total Cost of Production 445, 078
Loan amount required 35, 353

Profits to be Ploughed back 434, 450

CASH FLOW PROJECTION FOR THE FOUR QUARTERS OF 2023

Activity Per Quarter Quarter 1 Quarter 2 Quarter 3 Quarter 4 TOTAL

Charcoal 100 100 200 200 600
Labour (wages) 6, 037 6, 037 6, 037 6, 037 24, 149
General operation costs 455 345 495 645, 1, 940
Marketing costs 220 220 220 220 880
One Day Old Chicks 25, 025 25, 025 38, 220 50, 050 138, 320
Starter mash 19, 800 19, 800 30, 240 39, 600 109, 440
Grower mash 12, 292 12, 292 18, 774 24, 585 67, 944
Finisher mash 12, 292 12, 292 18, 774 24, 585 67, 944
Health care 1, 443 1, 443 1, 575 2, 205 6, 667
Transport costs 1, 500 1, 500 1, 500 1, 500 6, 000,
Add contingency (5%) 3, 958 3, 952 5, 801 7, 481 21, 194
Total costs per Quarter 83, 124 83, 008 121, 837 157, 108 445, 078

Revenue inflow Per

Quarter
Broiler Chickens 130, 625 130, 625 199, 500 261, 250 722, 000
Total Revenue Per 130, 625 130, 625 199, 500 261, 250 722, 000
Quarter

16
 Net Cash flow per 47, 500 47, 616 77, 662 104, 141 276, 921
Quarter

BREAK-EVEN ANALYSIS

The break-even point is the point at which EMUSA SDA WOMEN’S GROUP total expenses
(Variable and Fixed) exactly match its sales volume. It is a point at which EMUSA SDA
WOMEN’S GROUP will neither make a profit or loss

Given: Total expected sales K722, 000

Fixed costs K27, 567,

Variable costs K423, 884

Formula: B.E.P = Fixed cost

1 – (Variable cost/total sales

= K27, 567

1 – (423, 884, 232/722, 000,000)

= K27, 567, 232

0.41

= K67, 242 (sales at Break Even Point)

APPENDIX

i. Copy of Certificate of Registration.

17