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REARING LOCAL HENS FOR EGGS

By: wmutenza0 comments

Introduction

This business idea is for rearing of local hens for production of eggs. A hen is a domestic fowl bred for eggs or meat. This business idea is viable because you can get eggs, meat, hatch more chicks, which can also be sold at your wish. The business risk involved is diseases like cocidiosis; the solution is proper management and control of the business.

This business idea aims at production of 30,000 trays of eggs annually and 3,000 off layers per year. The revenue potential is estimated at US $ 135,000 annually. The initial capital investment cost for the project is US $ 995. The first three months demand a lot of investment yet returns are not realized. This idea needs a lot of patience.

Processes description

Chicks are kept in the brooder in which they are vaccinated and well fed on chick mash for 2 months till they grow feathers. They are then shifted to the main shelter in which they are fed for 3 months on growers mash. Cocks are then introduced to help fertilize the eggs. Reduce the noise, feed them on greens, ensure that water is enough and the hens will lay eggs.

Scale of Investment
Capital Investment Requirements in US$

Capital Item Units Qty @ Amount
Feeders No 50 3 125
Drinkers No 60 2 90
Brooder No 2 80 160
Poultry house No 3 200 600
Stands No 4 5 20
Total 995

Production and Operating Costs in US$

Cost Item Units @ Qty Amount Pdn Cost/ month Pdn Cost/ Year1
Direct costs3:
Chicks No 1 3000 3000 15 180
Coffee Husks Bags 4 20 80 4 48
Feeds Bags 40 30 1200 4 48
Medicine and vaccines Times 4 12 48 4 48
Egg trays Pcs 0.75 300 225 4 48
Subtotal 31 372

General costs (Overheads)

Labour 300 3,600
Utilities (water and electricity) 50 600
Administrative expenses 100 1,200
Shelter (rented) 150 1,800
Depreciation (Asset write off) Expenses 35 420
Sub-total 635 7,620
Total Operating Costs 666 7,992

Production is assumed for 365 days per year.
Depreciation assumes 2 year life of assets written off at 50% per year for all
assets.

Project Product Costs and Price Structure

Item Period Units Output/ year @ UPx TC T/rev
Eggs 12 months Trays 30,000 3 4 90,000 120,000
Off Layers 1.5 years No. 3,000 4 5 12,000 15,000
Total 102,000 135,000

Profitability Analysis Table in US$

Profitability Item Per day Per Month Per Year
Revenue 429 11,143 135,000
Less: Production and Operating Costs 25 660 7,992
Profit 403 10,483 127,008

Government facilities and incentives

The government of Uganda has continued to support agriculture through bodies like NAADS to advise farmers on how to rear poultry. There are extension workers and Veterinary Doctors in every district to offer free advice to farmers.

Market analysis

To survive in the highly competitive market one has to target supply to supermarkets, individual consumers and the export market.

 

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