TECHNICAL GUIDE FOR EGG PRODUCTION INTRODUCTION In ...

INFRASTRUCTUREElectricity/Gas: It is essential to establish a poultry projectwhere electricity or gas is available. Electricity or gas isneeded for providing light and heat to layers throughout thelaying cycle.Telephones: Telephone is vital means for marketing theproduct to the current or potential consumers wherever theyare located.Roads: It is advisable that a poultry farm should have goodand easy access to tarred or graveled roads to minimizebreakages. In addition, it will enable the farmer to transportinputs and outputs to and from the farm.Market: Accessibility and availability of markets within thevicinity of the project is very crucial for the success of theproject.Variable InputsVariable inputs required in egg production are feeds,medication, protective clothing, casual labour, water andtransportation. These variables, except labour, can besourced from the Ministry of Agriculture, hard-wares andstores specializing in agricultural inputs.Capital requiredEstablishing and running a project requires finance from theowners and/or various financial institutions and governmentprograms. This guideline has assumed acquisition of a loanfrom Citizen Entrepreneurial Development Agency (CEDA) at7.5% interest rate payable over a period of 7 years. Theprincipal loan amount covers the entire project establishmentand running costs for 12 months only. The guideline alsoassumes availability of land as owner’s contribution, boreholedrilling and equipping not included instead water will befetched from a nearby source and stored in a 10 000 literstank (see Appendix 1 attached).The egg production financial projections (see Appendix 1) isan outline of the project key assumptions, a budget of all theproject’s requirement, summary of profit & loss, cash-flowand breakeven.The key assumptions of production could vary from project toproject and project location. They include the project size,production level, costs, prices and loan. The key assumptionsare also the basis of the financial projections in Appendix 1.The budget of the entire project’s requirement assumes thatproject establishment will be six months long and point of layhens would be bought at the beginning of the eleventhmonth. They will start laying marketable eggs at the eleventhmonth. Therefore, the revenue for the eggs sold during year 0would be for one month only. The first hens would be sixmonths old at the end of year 0 and would be sold as spenthens during year 1.The summary of Profit and Loss statement and cash-flowindicate that the project will be able to repay the loan duringyear one. The financial analysis of the project is based on a2000 laying hens’ capacity and would breakeven at anaverage of 1, 658 hens producing a total of 32,469 dozens ayear.1213