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Compedium of Diaspora opportunities

MAKING POULTRY FEEDS BUSINESS IN UGANDA

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Introduction
The poultry industry is one of the fastest growing industries in Uganda. The poultry a product especially feeds have a wide market both in urban and rural areas of the country. The Business Idea was developed basing on the need to add value in the agricultural sector with provision of high quality poultry feeds.
An estimated fixed capital of US$23,940, when invested into the project, can yield an estimated annual revenue of US $78,000 from sale of 195,000kgms of poultry feeds, and 17,971US$, from sale of 39,936kgms of maize flour in the first year of production. The payback period is 2 years and the net profit margin is at 31%.

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ Total
Mixers No 1 1,250 1,250
10-HP Hammer mill No 1 1,632 1,632
15-HP Corn Cracker No 1 2,250 2,250
Grain cleaner No 1 1,000 1,000
Corn Grittier No 1 1,750 1,750
Weighing Machine No 1 408 408
Furniture & Fixtures Set 5 300 1,500
Delivery Van(3tones) No 1 12,500 12,500
Pellet Mills No 1 800 800
Packaging Machine No 1 850 850
Total 23,940

Production and Operating Costs in US$
Direct Materials, Supplies and Costs

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdn cost/yr
Direct Costs
Cereals Kgs 0.2 176 35 915 10,982
Oil seeds Kgs 0.38 72 27 711 8,536
By-Products Kgs 0.02 482 10 251 3,008
Di-Calcium Phosphate Kg 0.15 32 5 125 1,498
Packaging Materials Pcs 0.75 8 6 156 1,872
Other materials 95 1,140
Sub-total 770 83 2,253 27,036

General Costs (Overheads)

Labor costs 750 9,000
Utilities 538 6,450
Administration expenses 138 1,650
Selling & distribution 133 1,600
Rent 750 9,000
Fuel 196 2,350
Miscellaneous expenses 158 1,900
Depreciation 564 6,763
Sub-total 3,226 38,713
Total Operating Costs 5,479 65,749
  1. 1) Production costs assumed are for 312 days per year with daily production of 625kgs and 128kgsof poultry feeds and maize flour respectively.
  2. Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
  3. Direct costs include: materials, supplies and other costs that directly go into
    production of the product.
  4. Total monthly days assumed are 26-days.
  5. The valuation currency used is United States Dollars.

Project Product Costs and Price Structure

Item Qty/ day Qty/yr UnitCost Pdn cost/yr Upx T/rev
Poultry Feeds 625 195,000 0.28 54,567 0.4 78,000
Maize Flour 128 39,936 0.28 11,182 0.45 17,971
Total 753 234,936 65,749 95,971

Profitability Analysis Table

Profitability Item Per Day Per Month Per Year
Revenue 308 7,998 95,971
Less:Pdn&Operating Costs 211 5,479 65,749
Profit 97 2,519 30,222

 

Market Analysis

There is wide market for poultry feeds both in rural and urban centers as most of people are embarking on poultry farming since it’s a lucrative venture, but there exists large producers of poultry feeds in Uganda and these include: Kagodo Farmers, Ugachick Uganda Ltd and Biyinzika farmers etc. These may be producing at low costs by enjoying the advantages of economies of scale.

Government Facilities and Incentives

The government is encouraging value addition in the agricultural sector and hence access to the agricultural fund, and European Investment fund can easily be granted.

Risk certainty

The risk associated with this idea is healthy and safety related issue which can be addressed by employing food scientists.

Process

Cupcakes can be baked directly in a patty, often baked in paper cases.

Basic Cupcake Mix; General Costs (Over heads)  50g/2oz self raising flour

Eggs Trays 3 4 10 260 3,120
Sugar Kgs 1 40 52 1,352 16,224
Sub total 500 13,000 156,000

 

Rent 200 2,400
Packaging 260 3,120
Labour 300 3,600
Utilities (Power &Water) 200 2,400
Repair & Maintenance 500 6,000
Gas 500 6,000
Fuel 200 2,400
Depreciation(Asset write off) Expenses 102 1,224
Sub total 2,262 27,144
Total 15,262 183,144

50g/2oz Caster sugar (superfine)

50g/2oz Butter or margarine (shortening)

Tools & Equipments

  1. The Essential tools and equipments required include:
  2. Measuring Cups and spoons
  3. Electric Mixer or Hand Mixer
  4. Sheet Pans or Cupcake Pans
  5. Oven Thermometer.

Capital Investment Requirements

Project product cost and Price structure 

 

Capital Units Qty @$ Amount $
Delivery Cycles No. 2 800 1,600
Mixer No. 1 2500 2,500
Cup cake Pans No. 10 25 250
Gas Cooker No. 1 500 500
Spatula No. 1 28 28
Thermometer No. 1 20 20
Measuring Spoon No. 1 3 3
Measuring Cup No. 1 4 4
Total Amount 4,905
Item Qty/day Qty/yr @$ Pdn Cost/ yr$ UPx T/rev
Cup cakes 1000 312,000 0.59 183,144 0.86 268,320

Profitability Analysis Table

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