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DOG BREEDING (GERMAN SHEPHERDS) BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

Dog breeding is the practice of mating selected specimens with the intent to maintain or produce specific qualities and characteristics. The German shepherd, from Germany was originally bred for herding and guarding sheep. Its origins date back to the 700’s. The German shepherd Dog is also known by the other names of Alsatian and Deutscher Schaferhund. The advent of the two World Wars influenced the history of this dog.

Production Capacity

This farm will be capable of producing 50 dogs in a period of six months.

Capital Investment Requirements and Equipment

This Farm will be operated locally on small scale, i.e. 50 shepherd Dogs kept on 2 acres of land. The Fixed Capital Investment required to start this project is US$ 43,048, the revenue potential is estimated at US$ 218,400 with the net profit margin of 28%. The payback period of this project is 2 years.

Market Analysis

There is a high demand for German shepherd Dogs especially in schools, households, farms, and industries among others. However, they may also be exported.

Project Costs

The projected costs of production are summarized in the Tables below:

Capital Investment Requirements in US$

Capital Investment Item Units Qty @$ Amount $
Land Acres 2 10,000 20,000
German Puppies No. 50 150 7,500
Field Van No. 1 5,000 5,000
Tip Dishes No. 25 50 1,250
Gas Cooker No. 1 500 500
Puppy Pans No. 25 15 375
Kennels No. 10 500 5,000
Spraying Pump No. 5 30 150
Injectors No. 5 6 30
Spades & Pangas No. 4 4 16
Weighing Scale No. 2 100 200
Water Basins No. 25 5 125
Harmers No. 2 3 6
Wheel Barrows No. 4 30 120
Hand Hoe & Rake No. 2 3 6
Thermometers No. 2 10 20
Water Tanks No. 2 100 200
Dogs Beds No. 100 25 2,500
Feeding Troughs No. 5 10 50
Total Amount 43,048

Operating Costs General Costs (Over heads)

Item Units @ Qty/ day Prod. Cost/day Prod. Cost/month Prod. Cost/Year
Direct Costs
Dog Food Kgs 0.8 50 40 1,040 12,480
Drugs & Medicine M/gs/ Litres 20 5 100 2,600 31,200
Water Litres 0.0013 50 0.065 1.69 20
Sub total 140.065 3,642 43,700
Labour 300 3,600
Repair & Maintenance 200 2,400
Gas 200 2,400
Ropes 10 120
Fuel 400 4,800
Depreciation Expenses 480 5,762
Sub – total 1,590 19,082
Total Operating Costs 5,232 62,782

Project Product Costs & Price Structure

Item Qty/three months Qty/yr @$ Pdn Cost/yr$ UPx T/rev
Puppies 50 15,600 4.02 62,782 14 218,400

Profitability Analysis

Profitability Item Per day Per Month Per Year
Revenue 700 18,200 218,400
Less: Production & Operating Costs 201.2 5,231 62,782
Profit 498.8 12,969 155,630
Profit 220 5,017 60,730
  1. Production is assumed for 312 days per year. Depreciation assumes 25% write off for all assets. A production Month is assumed to have 26 days.

Sources of Supply of Raw Materials:

Raw materials will be locally sourced from Farmers who have already invested in the sector, Animal Husbandry Research Organizations & Centers in Uganda.

Government Facilities and Incentives Available:

The following incentives are available from Government in her bid to promote Agriculture: tax exemptions, basic infrastructure, and liberalized market.

 

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