able of Contents Executive Summary... 3 Mission, Objectives and Keys to success... 4 Mission...
4 Vision... 4 Objectives... 4 Core Values... 4 Keys to Success... 5 Company Summary... 6
Potential Products... 6 Ownership... 6 Company Structure... 9 Operational Requirements Chicken
Housing Equipment Getting Started Health Feed Chickens and egg production Breeds
Operational Strategy Production Cycle Marketing Strategy Market Analysis Demand Market
Segmentation Industry Analysis Competition and Buying Patterns SWOT Analysis PEST
Analysis MAZAIWANA BRAITHWAITE LAMECK Page 1
2 Financial Statements Start-up Costs Pro Forma Income Statement Pro Forma Cash flow
Statement Pro Forma Balance Sheet Break Even Analysis Payback Period Analysis Risk
Analysis Potential Sources of Finance Equity Financing Debt Financing Top reasons for failure
of poultry business in Zimbabwe Directory Other Business Plans... MAZAIWANA
BRAITHWAITE LAMECK Page 2
3 Executive Summary Our Poultry Farm rears roadrunner chickens and supplies them to
restaurants, takeaways and hotels in Harare, Zimbabwe. The roadrunner chickens are sold as live
birds. The farm is located 30km from Harare, along the Harare-Kirkman road. Most important to
us is our financial success and we believe this will be achieved by offering high-quality
roadrunners while minimizing costs. We have created financial projections based on our
experience and knowledge of the area. With a start-up expenditure of $15,500 we can generate
$20,000 in sales by the end of the first year, and produce good net profits. MAZAIWANA
BRAITHWAITE LAMECK Page 3
4 Mission, Objectives and Keys to success Roadrunners Business Plan 2016 Mission Our
mission is to provide high quality chicken meat and healthy roadrunners to customers at
affordable prices. We value our relationships with current and future customers and hope to
communicate our appreciation to them through our outstanding, guaranteed product quality,
personal service, and efficient delivery. Our commitment to our customers and the country of
Zimbabwe will be reflected through honest and responsible business. Vision To produce high
quality free range chicken that can be marketed to the whole of Zimbabwe Objectives The
objectives of our Poultry Farm are: Achieve first year sales of above $ Establish strategic
relationships with 5-10 restaurants, takeaways and hotels in Harare, Zimbabwe during the first
year. Establish a Discount Club that will build customer loyalty. To develop a sustainable farm,
surviving off its own cash flow. Core Values Customer satisfaction Commitment to achieving
results Sustainability Corporate Social Responsibility Employment Creation Innovation
MAZAIWANA BRAITHWAITE LAMECK Page 4
5 Integrity Keys to Success The keys to success for our Poultry farm are: Our discount Club,
which is a program that will create customer loyalty. Effectively communicating, to current and
potential customers, our position as a differentiated provider of the highest quality roadrunners in
Zimbabwe. Efficient production of the roadrunner chickens while minimizing costs
MAZAIWANA BRAITHWAITE LAMECK Page 5
6 Company Summary Our Poultry Farm rears roadrunner chickens and supplies them to
restaurants, takeaways and hotels in Harare, Zimbabwe. The roadrunner chickens are sold as live
birds. The farm is located 30km from Harare, along the Harare-Kirkman road. Potential Products
Live & Dressed Roadrunners You can sell live and dressed roadrunners to the market. The
market price of the live birds will range from $7-$10. Eggs You can sell roadrunner eggs to the
market. The market price for eggs is $5 a crate. Ownership You must choose a legal structure for
your poultry business, and there are 3 options you might consider. The structure you choose will
depend on the size of your business, along with your personal circumstances and how much you
want to grow the business. Keep in mind that if you need to, you can change your business
structure later on if you find that a new structure will meet your needs better. Sole Trader You
can operate your poultry farm as a Sole Trader. A sole trader is a person trading on their own.
The sole trader controls, manages and owns the business, is personally entitled to all profits and
is personally liable for all business taxes and debts. As a sole trader you can usually begin the
business without following many formal or legal processes to establish it. You will employ other
people to help run the business. The advantages of operating your business as a sole trader are
that it is a simple set up and operation, you retain complete control of your assets and business
decisions, there are fewer reporting requirements, and any losses incurred by your business
activities, may be offset MAZAIWANA BRAITHWAITE LAMECK Page 6
7 against other income earned (such as your investment income or wages). It is also relatively
easy to change your legal structure if the business grows, or if you wish to wind things up. The
disadvantages are unlimited liability which means all your personal assets are at risk if things go
wrong, and it is also harder to raise the start-up capital when you are alone. Partnerships In a
partnership, two or more people run a business together. Each partner shares responsibility for
running the business, shares in any profit or loss equally, unless the partnership agreement states
otherwise, and is liable for any debt within the partnership. A partnership is relatively
inexpensive to set up and operate. It is wise to establish your partnership with a formal written
partnership agreement. The advantage of a partnership is that it is easier to raise the start-up
capital, as all the partners will contribute towards the start-up capital. If 2 or more of the partners
are actively involved in the business, there will be an advantage of skills diversification, whereby
one might have experience in the poultry business, and the other experience with accounting
issues etc. The combined skills, experience and knowledge can provide better products and
service in the business. You can also consider a partnership if you are based outside Zimbabwe,
and you find someone in Zimbabwe who will run the business on your behalf. A partnership is
also simple and inexpensive to set up, there are minimal reporting requirements, and you can
share management/staffing responsibilities. The disadvantages of a partnership include potential
for disputes over profit sharing, administrative control and business direction. Another
disadvantage is joint and several liability of partners, which means that each partner is fully
responsible for debts and liabilities incurred by other partners with or without their knowledge.
Changes of ownership can be difficult and generally require a new partnership to be established.
Company A company exists as a formal and legal entity in its own right. It is separate from its
shareholder(s) or owner(s). It s responsible in its own right for everything it does and its finances
MAZAIWANA BRAITHWAITE LAMECK Page 7
8 are separate to your personal finances. Any profit it makes is owned by the company, after it
pays Corporation Tax. The company can then share its profits. It will have to be registered at the
Registrar of Companies. A company is a complex business structure, with higher set-up costs
and administrative costs because of additional reporting requirements. The advantages of
registering your business as a company include limited liability to the owners of the business,
ability to raise significant amount of capital, and it is also easy to sell and pass own ownership. A
company will require you to open bank account, and as registered company you will then have
access to loans and credit facilities for your business. Operating as a company increases trading
confidence and credibility. Customers and suppliers will feel more confident and comfortable
doing business with you. A company will also be able to qualify to apply for any formal tenders
in the market The disadvantages include significant set-up costs and maintenance costs, limited
or no control of company affairs, complex reporting requirements and company can't distribute
losses to its shareholders. MAZAIWANA BRAITHWAITE LAMECK Page 8
9 Company Structure BOARD OF DIRECTORS FARM MANAGER OPERATIONS
FINANCE & ACCOUNTING MARKETING & SALES The required staff will depend on the
scale of the business. This is just a simplified structure. Board of Directors The board of
directors' key purpose is to ensure the company's prosperity by collectively directing the
company's affairs, whilst meeting the appropriate interests of the owners of the company. They
determine the company's vision and mission to guide and set the pace for its current operations
and future development. Farm Manager The duties of the farm manager will include: Staff
management, supervises and coordinates activities of workers engaged in raising poultry, assigns
workers to duties Directs maintenance and repair of facilities and equipment, such as chicken
houses MAZAIWANA BRAITHWAITE LAMECK Page 9
10 Trains new workers Day-to-day operational decisions Business planning and operations,
strategic planning, business management Responsible for ordering and purchasing farm tools and
equipment Whole farm planning and management Finance & Accounting The duties will
include: Giving employees their salaries Prepare, examine, and analyse accounting records,
financial statements, and other financial reports to assess accuracy, completeness, and
conformance to reporting and procedural standards. Analyse business operations, trends, costs,
revenues, financial commitments, and obligations, to project future revenues and expenses or to
provide advice. Develop, maintain, and analyse budgets, preparing periodic reports that compare
budgeted costs to actual costs. Compute taxes owed and prepare tax returns, ensuring compliance
with payment, reporting and other tax requirements. Work with buyers and suppliers, costing,
ordering and paying for equipment and supplies Sales and Marketing Staff The roles of the sales
and marketing staff will include: Marketing and transporting of products Selling the company s
products MAZAIWANA BRAITHWAITE LAMECK Page 10
11 Finding new customers for the company Operations Our company will employ people who
will be taking care of the roadrunners. Their duties and work in and around the roadrunner house
can be divided into those operations: house preparation, starting chicks operations, growing
roadrunners operations, miscellaneous chores and slaughtering the birds. House preparation
includes cleaning and disinfecting the building and equipment. Starting chicks operations covers
the placement and care of baby chicks for the first 4 weeks. Growing roadrunners operations
covers the everyday chores for raising the chicks from 4 weeks to marketing. Miscellaneous
chores include medicating, vaccinating, repairing equipment, mowing grass, removing caked
litter, and picking up mortality. MAZAIWANA BRAITHWAITE LAMECK Page 11
12 Operational Requirements Chicken Housing Small scale poultry houses seem to be built in
almost every possible shape and size. Those building a new chicken house often ask for plans for
the perfect chicken house. However, few plans for small poultry houses are available. Many
existing buildings can easily be adapted to accommodate poultry. Poultry housing can be as
crude or elaborate as you wish to build as long as you provide the following: Protection A good
poultry house protects the birds from the elements (weather), predators, injury and theft. Poultry
require a dry, draft-free house. This can be accomplished by building a relatively draft free house
with windows and/or doors which can be opened for ventilation when necessary. Build the house
on high, well-drained areas. This prevents prolonged dampness and water saturation of the floor
of the house and outside runs. Allowing an adequate level of space per bird also helps keep the
humidity level in the house to a minimum. Keeping poultry totally confined together with fence
and covered runs are your best protection from predators. If you are building a new facility,
consider laying a concrete floor, and start the wall with one or two concrete blocks. This prevents
rodents, snakes, and predators from digging under the walls and the floors. Windows and doors
must be securely covered with heavy-gauge mesh wire or screening when opened. Build your
poultry house to prevent possible injury to your birds. Remove any loose or ragged wire, nails, or
other sharp-edged objects from the coop. Eliminate all areas other than perches where the birds
could perch more than 4 feet above the floor. Remove perching areas such as window sills, nest
box tops, or electric cords whenever possible. These extra measures could eliminate any injury to
you or your birds and may prevent damage to the housing, as well. Adequate Space
MAZAIWANA BRAITHWAITE LAMECK Page 12
13 Birds need adequate space for movement and exercise as well as areas to nest and roost.
Space requirements vary with the type of bird you raise. For roadrunners, you should have 10
birds per square metre (0.1 square metres for each bird) in the house, and at least 1 square metre
per bird in the outside run/range. Heating System The heating capacity requirement depends on
ambient temperature, roof insulation and the degree of house sealing. Electric heat lamps
(infrared bulbs) or gas or electric hover-type brooders can be used for the heat source. The
electric heat lamps are a good and popular source of heat. One 125-watt bulb is needed for each
25 chicks. A light with a red finish can be used to dull the light. Also, the heat lamp should be
secured so that it cannot fall into the litter, and all electrical wiring needs to be adequate for the
size of bulb used. Lighting If you wish to produce eggs from your flock year-round, you must
have a source for electric light. One electric light every 12 metres at ceiling height is appropriate.
Most small poultry houses do very well with one light above the feeding and watering area.
Windows placed in the house will also be a good source of light and warmth in winter and a
good source of ventilation in summer. Ventilation Ample air movement without a draft is
essential. Fresh air brings in oxygen while excess moisture, ammonia or carbon dioxide are
removed the stale air moves out of the house. Dampness and ammonia build-up are a sign that
there is not enough ventilation. For small houses, windows or vents on one side of the house
usually provide plenty of ventilation. Well-ventilated houses must also have plenty of insulation
and a good vapour barrier. Failure to insulate or ventilate properly causes moisture to accumulate
on the walls and ceiling in cool weather. Poultry can handle cold very well if they are dry.
However, cool and humid conditions can create many health problems. Locate openings on the
side away from prevailing winds. The south or east side is usually best. MAZAIWANA
BRAITHWAITE LAMECK Page 13
14 Appearance The appearance of any poultry house or outside run that is visible to the
neighbourhood should never detract from the over-all appearance of the surroundings. Exteriors
of structures should be kept painted and well-maintained. Weeds and trash should be removed
from around all facilities. Proper landscaping can provide screening and also help muffle sounds
from the birds. Unsightly structures are not good for the image of bird raising. Use Common
Sense When building a poultry house, use common sense in designing the structure. Build the
roof high enough and situate such permanent structures as nests, roosts, and feeders for easy
access and to make it easier to clean all areas of the house. Install doors so that they open inward.
Using sliding windows so that the birds cannot roost on them rather than windows which swing
in or out. Use building materials which will be easy to clean and disinfect. Slightly sloping the
floor toward the door can help prevent puddling in the building and will make the building easier
to spray out and dry between uses. Bedding Bedding type and maintenance in chick housing is
critical to the health and success of freeranging pastured poultry operations. Chicken growers
consider a number of factors when determining which material to use as bedding in their
facilities, with cost and availability being a major consideration. The floor should be covered
with a 5cm to 10cm deep litter of grain husks (maize or rice), straw, wood shavings or a similarly
absorbent (but non-toxic) materials. Wood shavings are highly recommended for use since birds
cannot eat them. Wood chips are too big for chickens to scratch around and wire mesh floors
should not be used, because they do not allow the chickens to scratch and are devoid of
beneficial microorganisms that contribute to the health of young, growing birds. Litter provide
insulation from the floor and soaks up moisture from the droppings. It also helps to prevent
damage to the birds legs due to slippery surfaces. Usually old litter is renewed when replacement
stock arrives. It is advisable not to re-use old litter. After old litter has been removed out of the
house, the floor should be cleaned and disinfected. MAZAIWANA BRAITHWAITE LAMECK
Page 14
15 Bedding materials generally needs to be very absorbent, and must have a reasonable drying
time. Many paper products, for instance, absorb moisture well but do not dry out appropriately.
The material should also have a useful purpose once it has been used as a bedding material.
Without a useful purpose for the used litter, poultry growers would need to dispose of
unmanageable quantities of old litter. Large accumulations of litter stored unused for long
periods of time are not ecologically acceptable even on a small scale, and would be nonsustainable from an industrial perspective. Examples of materials which can be used as bedding
include wood shavings, sawdust, hay, pine chips, hardwood chips, rice hulls, peanut hulls,
ground corncobs, chopped straw, sand, and leaves. Equipment Feeders Chickens should never be
debeaked, if they are expected to forage on plants and critters; debeaked chickens are useless on
pasture. There is no need for debeaking chickens in non-caged systems, because cannibalism in
open systems is not a problem. The birds are not stressed, bored, and there should be no
nutritional deficiencies. When feeders are set out for chicks, there should be enough linear space
to accommodate 35-50% of the flock at any one time. It is not necessary to accommodate
feeding space for all of them at one time, since chicks will spend a lot of time sleeping. When the
chicks line up at the feeder count them, and if it is full of birds and not at least 35% of them, add
some more feeders. Every few days, feeder space will change as the birds grow, so fewer will fit
around the feeders. Experienced producers say that, one of the easiest ways to foster leg
problems in chicks is associated with the stress resulting from inadequate feeder space. It is also
important that you make sure that the chicks never run out of feed; it is better to waste some feed
rather than have them not have enough to eat. Trough type feeders will provide more linear space
than round types. Chicks should not have to stretch for their food, so the feeder should be nested
into the bedding a half-inch or so to make sure the feeder lip does not exceed beak height. Birds
want to search down in the feeder for food MAZAIWANA BRAITHWAITE LAMECK Page 15
16 and stretching too much can cause leg problems. The lip of the feeder should hit the birds at
about breast height. Waterers should be elevated as chicks grow for both cleanliness and
drinking efficiency. For this reason, the waterer lip should be higher than the feeder trough.
Drinkers At day-old, provide a minimum of 6 bell drinkers of 40 cm (16 in) diameter per 1,000
chicks; 6 mini-drinkers or plastic trays per 1,000 chicks should also be available as an additional
source of water. As the birds become older and the area of the house in use is expanded, provide
a minimum of 8 bell drinkers of 40 cm (16 in) in diameter per 1,000 chicks. Place these evenly
throughout the house so that no birds is more than 2 m (6.6 ft) from water. As a guide, the water
level should be 0.6 cm (0.25 in) below the top of the drinker until approximately 7 10 days. After
10 days there should be 0.6 cm (0.25 in) of water in the base of the drinker. Within 3 4 days,
gradually remove any additional mini-drinkers and trays that were used at day-old so that all
chicks are drinking from the automatic drinkers. Drinkers should be checked for height daily and
adjusted so that the base of each drinker is level with the base of the roadrunners back from day
18 onwards. Nest Boxes The basic purpose of a nest box is to encourage hens to lay their eggs in
a clean cubicle in relative peace and privacy. A properly built nest assures that eggs are kept in a
good environment for collection or hatching. Chickens are not particular about where they lay
their eggs; however, a suitable nest box in which to lay eggs can make things flow more
smoothly around the farm. Most chicken experts recommend an average of one nesting space per
five birds. Getting Started The least expensive way to begin a free range poultry enterprise is by
purchasing chicks and raising them to production age. There are some advantages and
disadvantages to doing it this way. In addition to being less costly, chicks are less likely to bring
a disease in with them to the farm that could devastate the flock. Another important positive with
starting out with chicks is that they will grow up to become familiar and comfortable with the
people around them. The obvious downside with chicks is that they will require a lot of care, if
they are to reach MAZAIWANA BRAITHWAITE LAMECK Page 16
17 production age. The producer should always expect some mortality of the chicks along the
way too; normally, about 1 to 2% of chicks die in the first couple of days after they arrive on the
farm. These are typically runts and those that come from the hatchery sick. If the mortality rate
over this same time period is 4 or 5% or higher, something is wrong. Another option besides
chicks when beginning a poultry enterprise is getting started with birds; these are typically young
birds less than a year-old. This works well for egg laying operations; for example, a producer
may consider getting pullets, which are young hens just entering egg laying age. These are a
good deal if a producer can get them. This reduces much of the risk in raising chicks, and saves
money by not having to feed unproductive birds. The most expensive way to start a poultry
enterprise is with the purchase of mature birds. The upside here is that the birds will be
productive immediately and will present the fewest surprises. Besides the expense, other
negatives include the risk of disease being higher with mature birds and the fact the age of these
birds may not be known when they arrive on the farm. Getting Chicks When starting an
enterprise with chicks, purchase 25% more birds than is expected to be needed; this allows for
mortality and culling. When beginning a laying flock, decide on how many eggs will be needed
and size the flock accordingly. Unless the enterprise includes raising cockerels (young roosters)
for meat, most birds should be hens, since too many roosters will fight. Initially it is a good idea
to get chicks from a hatchery, however a producer may decide, after they have gained more
experience, to hatch their own chicks. Once chicks are brought to the farm, be sure to control the
cat and dog; they can be one of the deadliest predators of young birds. Rats are also serious
predators of chicks. A producer does not really want to add losses from predators to the mortality
rate normally expected with chicks. Commercial feeds such as Chick Starter can be used for the
first 2 weeks, and then can be switched to a locally mixed feed ration. Cold is one of the hardest
and deadliest things on chicks, the season should not be rushed by getting chicks too early in the
year. When the chicks arrive, they will need to get warmed up as quickly as possible. When they
are cold, chicks do not eat, MAZAIWANA BRAITHWAITE LAMECK Page 17
18 since their first desire is warmth. For a small batch of about 100 chicks, an area of 10 square
meters is adequate; a cardboard box with a light bulb hanging down will work quite well. A
thermometer at chick level can be used to monitor the temperature. A waterer and feeder will
also be needed, but initially some newspaper with feed and grit sprinkled on it is okay. The main
point at this time is that the chicks should have unlimited access to feed and water. Feeding Grit
and Vegetable Matter Silica and grit are necessary to the digestive process, where it serves as
food grinding stones in the bird s digestive system. There are commercially available grit
materials that can be purchased; however there are some producers who use creek sand and
aggregates, which they believe have a more diverse content of minerals and more. Grit should be
made available to chicks as soon as they arrive; it can be spread out onto newspaper along with
some feed sprinkled on top of it to ensure that the chicks receive a good dose of grit right away.
Vegetable matter type feeds, such as hay chaff, lawn clippings, and weed seeds can be made
available to chicks. They are nutritious and stimulate the scratching skills they will need when
they begin foraging in the pasture. However caution needs to be taken with feeding too much of
these fresh materials, since these types of feed are low in energy and reduce the amount of grain
that is eaten. From day old to 4 weeks They are very small and fragile treat them with love and
care. Put up an infra-red light ± 1m from the floor. Put coarse saw dust as bedding not fine
sawdust. Put down 5L or 2L water fonts with some electrolytes or booster in the water. Place
large pas of food on ground wet a 1/3 of feed. Do not place food or water near infrared light.
There must be enough space for chicks to move away from light. One infrared light is enough for
250 (two hundred and fifty) chicks. Feed pullet grow to hens (not roadrunner starter or grower).
MAZAIWANA BRAITHWAITE LAMECK Page 18
19 After 7 (seven) days during the day put infrared lights off when temperature is higher than 20
o C. Allow sunlight in on chicks, this will develop feathers much quicker. Keep to inoculation
program Feed AD LIB till 4 (four) weeks old. Refresh water 3 x daily cool water. After 14
(fourteen) days let them outside during the day but allow access back into cage. If chicks start to
peck each other you need to add more feed trays or pans. Remove sick or weak chicks and keep
them separate until healthy and strong. Do not allow strangers into chick houses. Keep good bio
security intact. Visit chicks often to see if all is in order. From 21 (twenty one) days put Viro-kill
in drinking water 10ml per 10L of water. From 5 weeks to 17 weeks Keep 10 (ten) chickens per
square meter. Put a bit of saw dust on floor. Keep inoculation program up. Give anti-body boost
once every 3 (three) weeks. Give Viro-kill in water every 2 (two) weeks 10ml per 10L. Separate
all sick and weak chicks sick bay. Treat with medication. Put back after strong and healthy. Visit
cage often to check for any strange habits i.e.: sneezing, cough etc. Remove bedding every 6
(six) weeks. Disinfect cage floor. Give cool water at all times. Wet 1/3 of feed. Medication
MAZAIWANA BRAITHWAITE LAMECK Page 19
20 MAZAIWANA BRAITHWAITE LAMECK Page 20
21 Health Be a good listener, as well as visual observer of the birds. Chickens should walk erect
and tall and routinely stretch; producers should hear happy chirping birds, if they are quiet,
something is wrong. Health issues have not typically been a problem in most free range poultry
operations despite not using antibiotics and vaccines. Birds are healthier in this system, because
they are not being crowded together, get plenty of fresh air and sunshine, eat a good, wellbalanced diet, and are not stressed. It is important that good pasture rotation is practiced, so that
the birds do not graze behind another flock for at least two years. Another critical point is to
practice the all-in and all-out (closed flock) philosophy of moving out an entire group of birds
before bringing in new replacement group of birds. The closed flock philosophy centres on the
belief that each flock is exposed to a unique set of disease-causing organisms, so they develop
their own set of immunities. Birds from two healthy flocks can therefore give each other diseases
for which the other has no defences. Once the flock is established, the best advice is to keep it
closed. Producers will have some sick birds, so have a hospital pen available to house them. This
quarantined area, with its special attention, proximity to feed, water, and pasture is often all that
is needed to help sick birds to recover. The hospital pen can also be an area in a stationary house
if there is space. Weather Most free-range poultry producers say that rain is their biggest weather
problem. Wet birds get cold and this is especially dangerous for young birds. Cold birds will
instinctively snuggle together for warmth; however as a consequence, birds in the middle of the
pile can suffocate. Older birds tend not to snuggle as much as younger birds; they will hunker
down, won t eat, or drink, and just slowly freeze to death, if the conditions last long enough.
They should be forced to stay active. It is not the brief thunderstorm that is the problem; it is the
cold, rainy period over several days that could be deadly to the birds. It is the saturated ground
with water running through it or with puddles forming that is the real problem; producers need to
take action immediately under these conditions. Action strategies include: taking some dry hay
or straw and spreading it out over the area under the pen, gently pushing the birds up onto the dry
material as MAZAIWANA BRAITHWAITE LAMECK Page 21
22 it is spread out. If there is a cold breeze as well, wind blocks should be placed against the side
of the pen. Pasture Needs Much the same with any other farm animal, producers want a good
grass and legume mixture in the pasture; the forage species is not that important. The quality of
the forage would also be the same as what is needed for other grazing animals. Chickens do like
to eat weeds, they are preferred next to legumes, so do not get too caught up with the overall
condition of the field. Monocultures (pasture with only one forage species) are not
recommended. One acre of good pasture is needed for every 400 chickens on pasture. Chickens
prefer pasture plants shorter than other grazing animals, so producers will need to either mow or
graze the pasture down to between two to six inches in height before putting the chickens on the
pasture. This provides an opportunity for producers to get multiple uses out of the pasture by
having chickens follow grazing livestock. The livestock will graze down the height of the pasture
plants and deposit manure piles that the chickens love to pick through. In fact livestock manure
provides essential vitamins and other nutrients to chickens. There are some plants that are
poisonous to poultry. These plants include poison hemlock, monkshood, privet, yew, nightshade,
and horse radish. Producers will notice that some of these are wild plants and others are
cultivated, so become familiar with what they look like, and see if any of them are on the farm
near the birds. Water The most important nutrient is water. Always provide fresh water. It is very
important in winter to provide non frozen water, and to provide abundant fresh water in the
summer. In the summer, you will be amazed how much water the chickens drink, and how much
evaporates. Make sure to keep their water full and clean. They must not run out of water. Feeds
and Feeding Chicken Supplementary feeding in particular for young chicks, is one of the most
important means of preventing diseases. MAZAIWANA BRAITHWAITE LAMECK Page 22
23 Store feeds in a dry and clean place always to avoid contamination and spread of diseases.
Provide your poultry with clean water daily to avoid the spread of waterborne diseases, such as
Fowl Cholera. Daily addition of EM to drinking water has been shown to help prevent diseases.
Feed Why feed indigenous free range chicken? Feeding is important so as to increase the
production of meat and eggs from indigenous chicken. A lack of feed or water will reduce
resistance to diseases and parasites, and subsequently increase flock mortality. It is important to
note that even small flocks of indigenous chicken will starve during certain periods of the year
(e.g. drought, planting season when birds are confined, floods etc.) when left to scavenge without
supplementary feeding. Egg production and growth are limited by access to feed and genetic
potential. Local birds are the best converters of feed to eggs under fluctuating environmental
conditions, although their production potential is much lower than genetically improved breeds.
You may easily increase egg production and growth of local birds by giving supplementary
feeds. Improved breeds also perform well under village conditions when given a steady supply of
feeds. It is important to always start by making calculations of the cost-benefit and judge the
risks involved before choosing the quantity and type of feed. What to feed? The composition and
availability of feeds will vary, depending on the season, locality and production system. Poultry
need feed containing energy and protein, as well as vitamins, minerals and water. The need for
feed will change, depending on the age and status (chicken, grower, egg layer, broody hen) of the
bird. The cheapest - and also often the best - way to supplement the diet of your poultry, is to use
local resources. However, many vitamins and nutrients are destroyed if the feed is stored too
long or under sub-optimal conditions, e.g. high MAZAIWANA BRAITHWAITE LAMECK
Page 23
24 humidity and heat. Knowledge of feed quality and sources of different feed types is important
for feed safety. If you have free range chicken, temporarily confined during planting season and
during night, you can supply grains, by-products of grains or tubers besides the green forage and
seeds they collect during scavenging. With a variety of feeds (plants and insects) also
requirements for minerals, trace-elements and vitamins are likely to be met. Water should be
available at all times. Young chicken should be fed easy to digest feeds that are energy and
protein rich. Scavenging In a free-range or semi-intensive poultry rearing system, adult hens and
cocks ought to be given enough time and space for scavenging in the surroundings daily. The
best time for scavenging is early morning and late afternoon when there are plenty of insects and
less heat. Chicks below six weeks of age should be confined. Supplementary feeds should be
offered in the morning and evening when the birds come back for the night. Ad libitum clean
water should be provided in shady areas during the day to avoid heat stress. If your production is
based on improved breeds or hybrids for egg production, different types of commercial diets may
be offered. These are divided into three distinct categories, with decreasing amount of protein as
follows; A starter diet or (chick mash): high in protein (18%,11,8 Mj ME); offered from day old
up to 8 weeks; Each chick will consume 2 kg during this period A growers' diet/mash: lower in
protein (14%, 11,6 Mj ME); offered from 9 weeks up to 18 weeks; Each grower will consume
about 8 kg during this period A layer diet/mash: medium in protein (14%, 11,2 Mj ME); offered
to hens from 19 to 75 weeks. Allow 120 g of feed per bird per day. Hens consume about 45 kg of
feed annually When buying commercial feeds, calculate whether it is profitable based on the
market price for eggs or meat/live birds. If the product price is lower than the price of feed
consumed by the birds MAZAIWANA BRAITHWAITE LAMECK Page 24
25 to produce it, it is not economical to offer commercial feeds. Indigenous chicks may be
offered commercial diets profitably from day old to six weeks of age. Types of feeds Energy
feeds As a rule 75% of a quality poultry diet is made up of energy feeds. Energy feeds are the
most important feeds for maintenance requirements (e.g. body temperature, vital functions,
exercise). Cereal grains, roots and tubers are the most important energy feeds. Examples of
energy feeds are cereals like maize and its by-products (bran), sorghum, wheat and its byproducts (bran), rice and its byproducts (bran, polishing), cassava root meal, yams and sweet
potatoes. Roots and tubers should be soaked in water for 60 minutes or cooked before drying to
remove harmful substances and the proportion in the diet in general kept below 10%. Fat is also
a good source of energy in particular in hot climates, as the heat produced during metabolism is
less than from traditional energy feeds, e.g. cereals. Sources of fat are e.g.: tallow, lard, oil cake
meals, hotel used oils and fat. Such oils and fats should only be given in small amounts, i.e. less
than 10% of the total diet. Protein Protein is needed for growth and optimal health status.
Normally no more than 20% of a poultry diet is made up of protein-rich feeds mainly due to high
cost. Protein sources may originate from animals or plants. Examples of protein-rich local feeds
are: Maggots, termite eggs, insects, worms, peas, beans, and oil cakes from e.g. ground nuts,
cotton seeds, palm kernels, and coconuts. Animal byproducts such as meat meal or bone meal
from chicken are not allowed, also fish meal is not allowed in organic farming. Synthetic amino
acids are not permitted. Some harmful substances (anti-nutrients) are present in some proteinrich plants e.g. beans. As such their proportion in the diet should be low based on type and
processing prior to feeding. Note that feeds processed with chemicals are not allowed in organic
farming Minerals MAZAIWANA BRAITHWAITE LAMECK Page 25
26 Minerals are important for bone formation, eggshell formation and for optimal health status.
The most important minerals are calcium and phosphorous. To produce strong egg shells, laying
hens need free access to calcium (limestone or crushed shells). Mature birds are usually able to
balance their mineral intake according to their requirements. When phosphorous rich feeds are
added to the diet, they should be balanced with calcium rich feeds, since high levels of one
mineral will cause deficiency of the other. Examples of sources for minerals are: bone meal,
limestone and burned eggshells. The use of bone meal or eggshells is a good way of balancing
calcium and phosphorus levels in the diet. Eggshells should always be scorched or cooked before
re-use in diets to remove contaminants. Vitamins Scavenging birds get vitamins from eating
green grass, vegetables, fresh cow dung and through sunlight. Vitamins A, B2, and D3 are
important because many problems arise when birds are deficient. Sunlight and green grass or
green fodder normally provide Vitamin A and D, whereas Vitamin B may come from fresh cow
dung. Vitamin B may also be added by giving multivitamins. Additional vitamins are given in
very small quantities and purchased from agrovet stores or feed stockists. Supplementary
vitamins are usually not required when birds are left to scavenge. Confined or intensively
management birds always need additional vitamins added into their feeds. Homemade feeds It is
advisable to make a semi-balanced diet for the small chicks from 0-6 weeks of age. In general
mixed feeds should not be stored for more than a few weeks to avoid contamination from mould,
bacteria or rodents and to avoid losing vitamins. It is possible to formulate poultry diets to
balance for both energy and protein according to the requirement of specific diets. How much to
feed in free range systems? A major economic advantage of the free-range or semi-intensive
production systems over the intensive systems is the ability of poultry to scavenge for in the
surroundings. This so-called MAZAIWANA BRAITHWAITE LAMECK Page 26
27 scavenging feed resource base (SFRB) will change over the seasons based on climate,
geography and production system in the area on which the poultry scavenge for feeds.
Depending on the season, the chicken may find nearly all they need in the surroundings (e.g.
during harvest) or nothing (during lean season). The table above shows the feed requirements of
the birds at different stages of their life. Ad lib means you should give the chicks as much feed as
they want, without restriction. Practically they will consume about 850 g of feed per chick during
their first four weeks. The table above shows that they will need 350g of feed for the fifth week.
Using the figures in the table, the chicks require 1.19Kg from week 6 to week 8. The chicks will
be allowed to free range from the 6 th week, and getting some of their required nutrients from
foraging the pasture. Thus we will only supplement 50% of their required daily needs, meaning
that we will give them 595g of feed from the 6 th week to the 8 th week. Thus during the first 8
weeks each chick will need 1.8Kg of feed. This feed can be in form of chick mash, or balanced
homemade feeds. From the 9 th week, the birds will continue free ranging, and getting some of
their required nutrients from foraging the pasture. Limit the quantity of feed offered to the birds
daily to at least 30% - 50% of their full daily intake. As the birds grow, they will gradually get a
smaller portion of what they need, until they only get between 1/3 and half of their needs as
adults. Economic MAZAIWANA BRAITHWAITE LAMECK Page 27
28 benefits are calculating the break-even point from the sale of eggs and live birds relative to
the cost of disease control, housing, labour and feeds. To ensure sustained egg production, offer
feeds when the chicken need it rather than less quantities during the harvest season and more
during the lean season. Reduce the flock size through selling some chicken when feed costs are
high rather than reducing the amount of feed given to each bird. The table above shows that each
bird will need 4,76Kg of feed from the 9 th week to the 16 th week when they are sold as
roadrunners. During this period the birds will also be free ranging and scavenging their
surroundings for food. Thus we will only supplement 50% of their required daily needs, meaning
that we will give them 2,38Kg of feed from the 9 th week to the 16 th week. We will use
commercial chick mash feed to give the chicks for the first 8 weeks, and from the 9 th week we
will use homemade feeds as supplements. The homemade feed will be a combination of soya
beans meal and maize in the ratio 1:5. This ratio gives the required protein content which the
birds need. Layers will need 120g daily. During this period the birds will also be free ranging
and scavenging their surroundings for food. Thus we will only supplement 50% of their required
daily needs, meaning that we will give them 60g of feed daily. How to feed? It is important to
use simple local measures to administer feeds. When using 1 kg containers (or a cup) measure
the amount of feed the container holds, and then calculate the number of containers of feed
needed daily. If the container holds 750 g of feed you will need to fill the container ¾ full. To
keep the birds hungry for scavenging, offer half the feed in the morning, which will be equal to a
half full container. To avoid competition, feed the young chicks a little more than half in a
separate shelter. Feed the hens next and finally before the feeder is empty feed the cock. When
cocks are offered feed before the other birds, they over eat and leave less feed for the rest of the
flock. Cocks are better at scavenging within the surrounding than the rest of the birds. Young
chicks will need relatively more protein in their diet than adult birds hence the need to mix two
different rations for young and adult birds, respectively. If you do not want to mix two
MAZAIWANA BRAITHWAITE LAMECK Page 28
29 different rations, you can alternatively give a little extra supplement of a good protein source
to the young chickens, e.g. maggots and termites. Guide to feed management Before buying,
mixing, and storing feeds, it is important to understand some underlying principles of good feed
management. It is crucial to: 1) Use local feed ingredients for local birds; 2) Know or estimate
the quality or feed value and prices of each feed ingredient; 3) Buy missing feed ingredients,
such as vitamins or protein sources locally from a stockist; 4) Change the feed formulation
depending on availability, quality or feed value and price; 5) Reduce the flock size under freerange production system during lean seasons and when feed cost increases; 6) When changing
feeds always do it gradually; 7) Avoid long storage periods; 8) Use locally available materials
such as tins or matchboxes for quantifying the different ingredients to be mixed. Grams or
percentages do not work in practice; 9) Store mixed feed or feed ingredients separately on a
platform approx. 30 cm above the floor; 10) Stop the entry of rats, pigeons, or other type of birds
into the feed store; 11) Make sufficient ventilation to ensure that feed ingredients are not wet due
to humidity; 12) Caution; Do not use feed ingredients that are moldy, discolored or infested with
pests. Water Scavenging poultry can get diseases by drinking water from small ponds or puddles,
as these can transfer water borne diseases and parasites. Poultry should get clean and fresh water
all the time at the same place. This makes it is easy to medicate them. Clean water should be
given at least early in the morning and again in the evening when the birds are returning to the
house for the night. It is important that all feeders and drinkers are kept clean to avoid disease
infection through dirty feed and water. MAZAIWANA BRAITHWAITE LAMECK Page 29
30 Type of food for chickens Food scraps There are many food scraps that hens will enjoy, that
are also good for them. Keep in mind that the poultry feed is the best feed for them, so don't
overwhelm their diet with other foodstuffs. Chickens don't have teeth or cutlery to get their food
into small pieces, and too much food in the birds crop can lead to compaction there, which is a
life threatening problem, therefore, it is a good idea to chop up the scraps that you feed to them.
There are also things to avoid. If something is clearly rotten, mouldy, or inedible don't feed it to
your chickens, just compost or dispose of it. Cereal products, such as bread, cereal, pasta (for a
good time, hand feed your hen spaghetti!), and pastry are fine. You can also give them remains
of your sadza, rice, beans etc. Lean meats (cooked or raw) and fish, fish skin, and dairy products
are good for chickens, since they usually benefit from added protein. Keep in mind that too much
fat can lead to serious health problems. Most fruits (bananas etc.) and vegetables (cabbages,
spinach, covo etc.) are fine, cooked or raw. Chopping them makes them more attractive.
Chickens love vegetables! Insects and Animals Chickens are omnivores and crave protein, like
all omnivores. Chicken's favourite treats are all kinds of insects, worms, and even mice (chickens
are actually very good mouse hunters). Grains Chickens love grains, you can feed them with
wheat, maize, sorghum, rapoko, makireshi etc. Chickens and egg production Hens and eggs
Female chickens are called pullets for their first year or until they begin to lay eggs. For most
breeds, around 20 weeks is a typical age for the first egg. Some breeds lay eggs daily, some
every other day, some once or twice a week. MAZAIWANA BRAITHWAITE LAMECK Page
30
31 Some individual hens never lay eggs, due to narrow pelvises or other anomalies. Normal
laying routines can be interrupted by molting, winter daylight shortage, temperature extremes,
illness, poor nutrition, stress, or lack of fresh water. Hens usually return to normal laying habits
when the disruption-causing factor ends or is corrected. Most hens are productive layers for two
years before declining in production, but some continue to lay eggs for several years. Egg
development and laying process Hens will lay eggs whether or not they ve ever seen a rooster
(male chicken). Roosters are necessary only for fertilization of eggs. A female chick is born with
thousands of tiny ova, which are undeveloped yolks. Once she reaches maturity, an ovum will be
released into a canal called the oviduct and begin its journey of development. At any given time
a productive hen will have eggs of several stages within her reproductive system. The eggs most
recently discharged from the ovary are just tiny yolks, and the eggs farther down the oviduct are
progressively larger and more developed. From the time an ovum leaves the ovary, it takes
approximately 25 hours for the egg to reach the vent for laying. During that time period, the yolk
will grow larger while being surrounded by albumen (egg white), wrapped in a membrane, and
encased in a shell. Pigment is deposited on the shell as the last step of the egg production
process. If sperm is present, the yolk will be fertilized before the albumen is deposited. As a
chick embryo develops in a fertilized egg, the yolk provides nourishment and the albumen
cushions the embryo. Although a hen has only one exterior opening (the cloaca or vent) for egg
laying and elimination, eggs are not contaminated during the laying process. Two separate
channels, the oviduct and the large intestine, open into the cloaca. As the egg nears the end of the
MAZAIWANA BRAITHWAITE LAMECK Page 31
32 oviduct, the intestinal opening is temporarily blocked off. The egg passes through the cloaca
without contact with waste matter. The typical interval between eggs laid is about 25 hours, so a
hen that lays an egg every day will lay a bit later each day. Hens don t usually lay eggs in the
dark, so once a hen s laying cycle reaches dusk time, she will usually not lay till the following
morning. Eggshell production drains calcium from the hen s body. The comb, wattles, legs, and
ear lobes will fade as the calcium leaches out. Calcium must be replenished through either feed
containing calcium, supplements such as oyster shell, or high amounts of calcium in the soil of
birds with outdoor access. Egg variations Young pullets often lay malformed eggs before getting
established in a normal laying routine. Older hens may occasionally lay abnormal eggs due to
age, stress, or illness. Pullet eggs--the first ones produced by each pullet--are smaller than the
eggs that the same hen will produce as an older hen. Fart egg and oops egg are terms for tiny
eggs that quickly pass through the oviduct without reaching full size. Shell-less eggs are released
before they have time to develop a shell. They may have membrane holding them together or just
be loose yolk and white. Double eggs or egg in an egg are created when an egg with a shell is
encased by the next egg in the oviduct and a shell is produced over the outer egg as well. Double
yolkers may have a normal amount of egg white with two or more yolks. In the shell, the egg
may be unusually large. Yolkless eggs, also called no-yolkers, dwarf eggs or wind eggs, consist
of egg white alone. Occasionally an egg will come out with a wrinkly, misshapen, rough, bumpy,
or unusually colored shell. MAZAIWANA BRAITHWAITE LAMECK Page 32
33 Egg size is dependent on breed, age, and weight of the hen. Larger chicken breeds tend to lay
larger eggs; banty breeds lay small eggs. Older hens tend to lay larger eggs than younger hens.
The shell color is a breed characteristic. Most chicken breeds lay light-to-medium brown eggs. A
few breeds lay white, dark brown, green, blue, or cream colored eggs. Shell color is only skin
deep -- the eggs inside are the same as eggs of other colors. The shell color intensity of eggs laid
by one hen can vary from time to time, with an occasional darker or lighter eggshell. While most
eggs have a slight sheen to the shell, some breeds or individual hens tend to lay eggs with a
chalkier texture. Chicken-and-egg behaviour Most hens will lay eggs in the same nest box as
flockmates, so it s not necessary to have a nest box for each hen. Some hens like to lay their eggs
in private and others will join their sisters in the nest box. Often two or three hens will crowd
into one box while another nest box remains empty. Sometimes a hen will sit on previously laid
eggs and add her egg to the clutch. Another might prefer to sit in another area and deposit one
egg by itself. Often a hen will sing the egg song before or after she lays an egg. Some will sing
during the process of laying. It is a cheerful song that seems to be a proud announcement.
Chickens learn by example, so a fake or real egg left in a designated nest box may encourage
hens to lay there instead of on the floor or outdoors. Unconfined hens may lay eggs anywhere
outdoors if they don t want to return to the nest box. Sometimes a free-ranging hen will go
missing and reappear weeks later with a parade of chicks. Chickens like to eat eggs, even their
own. An egg that gets accidentally broken will likely be eaten by one of the chickens. If you
occasionally find pieces of shell or egg yolk in the nest box, it s usually nothing to be concerned
about. MAZAIWANA BRAITHWAITE LAMECK Page 33
34 Some chickens become habitual egg-eaters that break eggs open and eat them. An eggeater
should be culled from the flock if you wish to have eggs for the kitchen. Not only will that
chicken continue to eat eggs, but others will learn from watching and you may end up with
several egg-eaters. Holes in eggs and cracked eggs do not necessarily mean there is an egg-eater
in the flock. A hen can accidentally crack an egg in the nest when she sits down or adjusts the
nest to lay her own egg. Sometimes curiosity or boredom leads a chicken to peck at an egg
without the intention of eating it. Chickens can be fed their own or other eggs either raw or
cooked. Eggs provide protein and the calcium in the shell is beneficial for laying hens. A potato
masher can be used to break boiled eggs into pieces of egg and shell. Empty eggshells from the
kitchen can be fed back to chickens as a calcium supplement without concern for developing
egg-eaters. However, to be safe, crushing the shells or running through a blender is a good idea.
Chicken and Roosters The only reason a rooster would be required with a flock of hens is to
fertilize eggs. As a side job, a good rooster also serves as a watchman, warning his hens of
predators and other dangers. He also seeks out food for his harem. Even with a virile rooster in
residence, not all eggs will be fertile. Some hens just don t interest a rooster and others never get
caught. Often, roosters will have favorite hens that get most of their attention and others remain
unnoticed. Hens do not have an estrus cycle. They can mate and develop fertile eggs at any time.
Sperm can remain viable in the hen s oviduct for three to four weeks, so one mating will fertilize
numerous eggs. Brooding and hatching A broody hen of any breed can be used to hatch eggs and
raise chicks from other hens of any breeds. MAZAIWANA BRAITHWAITE LAMECK Page 34
35 A broody will sit on any eggs, whether or not they are fertile and regardless of who laid them.
To gather a suitable clutch of eggs, she will not only lay her own eggs but may roll other hens
eggs into her nest. While a hen is brooding, you can remove daily any extra eggs she gathers into
her clutch. Drawing pencil equator lines around the eggs you want her to brood will help with
identification. A setting hen will usually leave the nest at least once a day to eat, drink, and
defecate. The eggs are not in danger of cooling off too much during a normal foray into the coop
or run. Typically, chicken eggs hatch about 21 days from the beginning of incubation or nesting
by a broody hen. A few days early or late is not unusual, and some breeds lean toward earlier or
later hatches. Not all fertile eggs will develop into embryos. Some never develop due to egg
deficiencies or temperature fluctuations. Not all chick embryos will successfully hatch. They can
die any time before hatching, even after pipping a hole in the egg. Double yolk eggs rarely hatch
due to crowding during embryo development. If a broody hen has pushed an egg out of the nest,
she probably knows something is not right with that egg or embryo. How to Hatch Chicken Eggs
in an incubator General Hints Eggs should hatch in 21 days, though some may hatch a day or 2
early and some a day or 2 late, after the incubation period began. A "day" is counted as a full 24
hours, so Day 1 would be the first 24 after setting the egg, Day 2 the next 24 hours etc. If you set
eggs on a Monday, it's usually a safe bet that they will hatch on a Monday, 3 weeks later. Select
clean, even shaped, undamaged eggs for incubating. If possible, do not store them too long preincubation. Ideally eggs should be set within a week after being laid and after 10 days
MAZAIWANA BRAITHWAITE LAMECK Page 35
36 the hatchability of the eggs drops significantly. Before putting your eggs into an incubator,
plug it in and make sure the temperature is steady. Fertility and Candling Natural fertility is
rarely 100% - it may vary from 55% to 95% with season, condition and type of birds. You might
be safe to expect that 50% to 75% of the fertile eggs will hatch, though 90%- 100% hatches can
and does happen. Fertility of eggs cannot be determined before incubating them. After 5-7 days,
white-shelled eggs can be candled to see if embryos have developed. If there is no sign of
development by day 10, discard any "clears". The Air Bubble in the Egg Soon after an egg is
laid, a small air bubble forms in the large end under the shell. A membrane separating the mass
of the egg and the air bubble moves back and forth to relieve stress and pressure on the embryo
resulting from changes in temperature. The drier the outside air is, the more fluid is depleted and
the faster the bubble grows. Correct humidity in the incubator insures that the bubble does not
grow too big, depleting essential fluids, or deny the chick enough air by remaining too small.
The importance of correct humidity is more apparent at the end of incubation. The normal
condition is that the air cell has enlarged to the point where the chick can reach his beak through
the membrane wall, allowing it to breathe, before it pips through the shell, after which it will
"zip" around the shell. If humidity has been excessive, the chick may pip internally into the air
cell and drown in excess fluid. On the other hand, if humidity has been too low, the air cell will
be oversized and the chick may be "shrink wrapped" in the inner membrane and unable to hatch.
Positioning of Eggs An incubating egg could set in a normal position as it would on a flat
surface; that is with the large end slightly higher than the point, or upright in egg cartons/turners,
with the fat end of the egg always up. An egg that persistently has the small end elevated may
cause the embryo to be disoriented with the head toward the small end. In the disoriented
position, the chick is likely to MAZAIWANA BRAITHWAITE LAMECK Page 36
37 drown on pipping. Therefore, it is quite important that in general, the large end of eggs should
be slightly higher than the small ends; or as they would lie naturally on a flat surface. Turning
Turning is essential during the first 14 days of incubation and should be continued until 3 days
prior to the eggs expected hatch day. If hand turning, always turn the eggs an uneven number of
times a day, so the eggs do not spent two nights in a row in the same position. If not turned to a
fresh position frequently during the early stages, the developing embryo touches the shell
membrane and sticks to it causing abnormal growth. Turning the egg aids these movements
within the egg, and mimics what a mother hen would do naturally. What to do with Hatched
Chickens After the chick hatched allow it to dry off and fluff up in the incubator before
removing it to a brooder. Newly hatched chicks can survive for up to 3 days on the yolk they
absorb during the hatching process, but once you put them in the brooder make sure there is at
least water available and offer them food after a day or 2. If you don t have an incubator, you can
hatch eggs the natural way using a broody hen. You will have to allow your hen to sit on a clutch
of eggs and let them hatch out naturally into fluffy baby chicks. You will have chicks after 21
days just like when using an incubator. Breeds There are many breeds of roadrunners which can
be found in Zimbabwe. Boschveld This is the most popular commercial breed of roadrunners in
Zimbabwe. The Boschveld is derived from three indigenous breeds - the Venda, Matebele and
Ovambo - and is the only synthetic indigenous chicken breed in Africa. The chickens survive and
produce on what nature can provide, with only a small amount of maintenance feed to boost
production. MAZAIWANA BRAITHWAITE LAMECK Page 37
38 They withstand Africa's varying climatic conditions and keep producing well in freerange
conditions. They have inbred hardiness, which helps them to withstand poultry diseases. Cocks
are strong, aggressive and have noble conformation. Versatile: Can be raised as layer (egg
production) or roadrunner (meat production) Hens are very fertile with strong, healthy offspring
that grow well. Egg production starts at 20 weeks. No expensive housing is needed to make a
success of a poultry operation. Cocks are ready for slaughter at 12 weeks old, depending on
nutritional levels. The meat has a good flavour. Rhode Island Red American breed of chicken
Versatile: Can be raised as layer (egg production) or roadrunner (meat production) Hens are very
fertile with strong, healthy offspring that grow well. Egg production starts at 19-20 weeks. The
roosters usually weigh in at about 3.9 kg, the hens average slightly less at 2.9 kg. The bird's
feathers are rust-colored, have red-orange eyes, reddish-brown beaks, and yellow feet and legs
Rhode Island Reds are good layers of brown eggs. Hens lay 5 7 eggs per week. The hens lay
approximately 312 eggs in their first laying season and 223 in the second. No expensive housing
is needed to make a success of a poultry operation. The chickens survive and produce on what
nature can provide, with only a small amount of maintenance feed to boost production. Other
pure breeds which can be found in Zimbabwe are Australorps, Leghorn, Light Sussex. The rural
indigenous chickens MAZAIWANA BRAITHWAITE LAMECK Page 38
39 These are the chickens which are found in the rural areas, which are usually a cross breed of
many different breeds. They have no genetic identity, meaning that you can tell their expected
weight after a number of weeks, how many eggs they can lay, their growth potential etc. We do
not advise using them for business. It is better to use pure breeds like the ones listed above,
which have known genetic characteristics. MAZAIWANA BRAITHWAITE LAMECK Page 39
40 Operational Strategy Production Cycle The roadrunners are going to be ready for market
when they are 16 weeks old. Roadrunners take a long time to mature, unlike broilers. The major
product of the business is going to be roadrunners (sold for meat). Some birds are going to be
raised to be layer birds, since we don t want to continue to buy day old chicks, we intend to hatch
our own chicks. The birds will start laying eggs at 20 weeks of age. We are going to control the
number of chickens we have, so we will only expose the layers to roosters only when we want to
have more chicks. Keeping the layers together with the roosters will make them lay fertilised
eggs, which we will then take, incubate in our incubator, and hatch them into the required
number of chicks. When we do not want to have more chicks, the layers will continue to lay eggs
in the absence of roosters. The eggs they produce will be sold to the market. Week 1 Week 8
Week 16 Week 20 Week 24 Week 32 Week 40 Week 48 Year 1 You buy 675 day old chicks
(525 for roadrunners(meat), and 150 which are going to be free range layers(eggs)) You buy 525
day old chicks 1. You sell 500 roadrunners(assuming 5% mortality rate) 2. You buy 525 day old
chicks 1. Layers start laying eggs 1. You sell 500 roadrunners 2. You hatch 525 day old chicks 1.
You sell 500 roadrunners 2. You hatch 525 day old chicks 1. You sell 500 roadrunners 2. You
hatch 525 day old chicks 1. You sell 500 roadrunners 2. You hatch 525 day old chicks Week 4
Week 12 Week 20 Year 2 1. You sell 500 roadrunners 2. You hatch 525 day old chicks 1. You
sell 500 roadrunners 2. You hatch 525 day old chicks 1. You sell 500 roadrunners 2. You hatch
525 day old chicks MAZAIWANA BRAITHWAITE LAMECK Page 40
41 Week 25 Week 28 Week 36 Week 44 Week 45 Week 52 1. You hatch 150 day old chicks,
which are going to be layers 1. You sell 500 roadrunners 2. You hatch 525 day old chicks 1. You
sell 500 roadrunners 2. You hatch 525 day old chicks 1. You sell 500 roadrunners 2. You hatch
525 day old chicks 1.You sell 150 off layers 2. The other layers start laying eggs 1. You sell 500
roadrunners 2. You hatch 525 day old chicks Week 8 Week 16 Week 20 Week 24 Week 32
Week 40 Week 48 Year 3 1. You sell 500 roadrunners 2. You hatch 525 day old chicks 1. You
sell 500 roadrunners 2. You hatch 525 day old chicks 1. You sell 500 roadrunners 2. You hatch
525 day old chicks 1. You sell 500 roadrunners 2. You hatch 525 day old chicks 1. You sell 500
roadrunners 2. You hatch 525 day old chicks 1. You sell 500 roadrunners 2. You hatch 525 day
old chicks 1. You sell 500 roadrunners 2. You hatch 525 day old chicks The table above shows
that we will be selling roadrunners after every 8 weeks. We will buy day old chicks for the first 3
cycles only, after which we will hatch our own chicks from the eggs which will be laid by our
layers. Each cycle will have 500 roadrunners, and is going to be 16 weeks long. At any one time
we will have 2 groups of roadrunners, which have 8 weeks age difference, to enable us to sell
roadrunners after every 8 weeks. We will assume a 5% mortality rate of the day old chicks,
meaning that 5% of our chicks will die. This means that 25 out of the 525 chicks, thus 500 birds
will survive to maturity. We will assume that the layers will have 70% production efficiency,
meaning that for any given day, 70% of the layers will lay an egg. Since we have 150 layers, it
will mean that every day we will have 105 eggs. We will assume 80% hatchability of the eggs,
which means that 80% of the eggs which go into the incubator will successfully hatch. This
means that if we want to get 525 day old chicks, we will put 657 eggs into the incubator.
MAZAIWANA BRAITHWAITE LAMECK Page 41
42 Please note that if you start with 500 chicks, you can potentially grow their number to several
thousands of birds, if you hatch all the eggs you get. Thus you will have to control the growth of
the flock so that it becomes sustainable, as more birds will require more infrastructure, a bigger
market, more labour, land etc. If you have the market available and infrastructure plus the ability
to take care of several thousands of birds, then growth is okay. In this business plan we have
assumed that we will maintain our birds at 500 per cycle. Also note that if you are hatching
chicks at let s say week 40, that means you will have put the eggs in the incubator 3 weeks prior
i.e. week 37. MAZAIWANA BRAITHWAITE LAMECK Page 42
43 Marketing Strategy Our company will attempt to rapidly achieve awareness in Harare about
its business in the first year. To be successful in this business, you should have many customers.
Thus it is of great importance to have a solid marketing strategy, in order to distinguish ourselves
and gain more customers. Our marketing strategy is based upon the marketing mix, which are the
4 p s of marketing, which are product (service), price, promotion and place (distribution).
Product/Service We will sell high quality meat and healthy roadrunners to our customers.
Customers will be pleasantly surprised at how attentive we are in regards to their needs. The
business operates on the assumption that it will do whatever is reasonably necessary to keep the
customer happy. This reflects the notion that if the customer is kept happy; long-term profits are
ensured. Price We will try and minimize our production costs so that we can offer a more
competitive price on the market. We will use feed concentrates which we will mix with our own
maize in order to reduce feed costs, in combination with our own homemade feeds which are
cheaper. The prices of our products will be determined by the market forces, and we will not try
to lower our prices below the industry s average as that will affect our profitability. By using the
market s prices, all our products will be bought, so there is no need to lower our prices. We will
not try to increase our prices above the industry s average, as we will lose our customers as the
prices are elastic. We will offer discounts to those who buy in bulky to gain customer loyalty.
Promotion We will use various ways of promoting our company so as to gain more customers
and increase general awareness of our farm and the services we offer. Word of Mouth Word of
mouth advertising via quality products will be used to market our company. We will give
incentives to customers who refer others to our farm. We will spread the word of our
MAZAIWANA BRAITHWAITE LAMECK Page 43
44 chickens in our community. We will also use our personal networks to identify new
customers. We will talk to family and friends; inform the local church community; showcase
products at community functions. We will also reach out to retired producers, as they are a
source of potential customers. They may simply miss eating quality chicken and are looking for
someone to supply the needs of their own family, or they may have a list of former customers
looking for a new chicken supplier. Community Involvement Maintaining and enhancing our
reputation with families and in the community will be crucial in obtaining the planned market
share growth of this target market. We will be active in our community, sponsoring events at the
community centre for families and residents. Fliers Our marketing strategy will include the use
of fliers which are going to be distributed to butcheries, schools, churches, supermarkets, hotels
and fast food outlets. These fliers will be well designed, attractive and very informative,
containing our prices, contact details and products which we sell. We hope to get potential
customers from the distribution of fliers. We will also offer monthly calendars to our customers.
Newspapers We will place adverts in the Sunday mail so that more people can be aware of farm
products. Placing our advert in the Sunday mail will ensure that our advert will be read the whole
week as it is a weekly newspaper. It will also ensure that we reach all age groups as it is a family
newspaper. It also has a wide coverage in Zimbabwe and it is read by many people. Public
Transport Advertising We will advertise our farm products on commuter omnibuses which
commute from Harare CBD to different locations in Harare. This will make more people aware
of our products. Internet Marketing MAZAIWANA BRAITHWAITE LAMECK Page 44
45 The company s website will be a dynamic marketing tool for the company. The website will
provide information about our products for target customers. As the company grows, its
recruiting needs can be addressed by posting carrier opportunities and Frequently Asked
Questions about the company. With time we will consider ecommerce, whereby we will
integrate our website with Paynow, the Zimbabwe online payment system, which will allow
customers who want to pay for our products online to do so. The goal will be to implement a
functional and professionally designed website that can be adapted to meet the company s
growing needs. We will link our website to our social media accounts on Facebook, LinkedIn
and Twitter. We will regularly update our website with latest information, promotions and
discounts. We will also ask visitors to subscribe to our site, and receive a monthly newsletter of
our company. We will also advertise our products on many Zimbabwe advertisement websites,
and whatsapp advertising groups. Place/Distribution Our farm will be located close to Harare
city, which is our intended market. We will distribute our products in all parts of Harare.
MAZAIWANA BRAITHWAITE LAMECK Page 45
46 Market Analysis Demand The demand for chicken in Zimbabwe is very high. Zimbabweans
consumed chicken worth over $400 million in 2014, which was an increase from the amount of
chicken consumed in 2013, thus demand for chicken continues to increase. The average demand
of chicken per month in Zimbabwe is 11000 metric tonnes, and it has been on the rise since the
dollarization of the economy in 2009. Data is not available for the demand of specifically
roadrunners. An increasing number are preferring roadrunners to broilers. This is because
roadrunners are highly nutritious, delicious, organic, and have no chemicals injected in them.
Thus the demand of roadrunners continues to rise. The demand for eggs in Zimbabwe is very
high. Eggs are considered an alternative cheap source of proteins. Almost every household
consumes boiled/fried eggs. Zimbabweans consumed eggs worth over $100 million in 2014,
which was an increase from the value of eggs consumed in 2013, thus demand for eggs continues
to increase. The average demand of eggs per month in Zimbabwe is about 48 million eggs, and it
has been on the rise since the dollarization of the economy in 2009. Market Segmentation
Potential customer groups for our poultry farm are: Hotels, restaurants and fast food outlets This
is the largest market for roadrunners. They buy roadrunners in bulky to cook meals for their
customers. Some of their customers love roadrunners, because they are nutritious, delicious and
organic. Not all restaurants serve roadrunners, but those who offer traditional foods usually offer
roadrunners also. Our company will provide live and dressed roadrunners to hotels, takeaways
and restaurants in various parts of Harare. Some supermarkets have restaurants within them, thus
we will also supply the roadrunners to them. Our company will provide discounts and
promotions to restaurants so as to create customer loyalty and secure them as its customers.
MAZAIWANA BRAITHWAITE LAMECK Page 46
47 Butcheries and Supermarkets This is an untapped market. We would love to go into all the
major supermarkets in Zimbabwe one day, and see dressed organic roadrunners on sale. We
would love to see roadrunners for sale in butcheries. Wholesales and Supermarkets We will
supply branded packaged eggs to wholesales, large and small supermarkets in Harare. By
creating and maintaining good relationships with the wholesales and supermarkets, we will end
up having long term contracts with them. This will create predictable income and stability for the
company. Tuck-shops and Vendors We will supply packaged eggs to tuck-shops and vendors in
Harare. By creating and maintaining good relationships with the tuck-shops and vendors, we will
end up having long term contracts with them. This will create predictable income and stability
for the company. Individuals Live birds, dressed chickens and eggs will be sold to individuals
especially to those who buy in bulky. Individuals buy birds in bulky for various reasons
including for weddings, parties and family functions. Selling direct to consumers allows
producers to set a price that covers costs and provides a profit. Organisations Our company will
supply live birds, dressed chickens and eggs to various organisations like boarding schools,
hospitals, prisons and churches in Harare, Zimbabwe. Price of roadrunners Hotels, restaurants,
and takeaways buy roadrunners at $7-$10 depending on the weight, location and quantities.
Roadrunners are more expensive than broilers because roadrunners are highly MAZAIWANA
BRAITHWAITE LAMECK Page 47
48 nutritious, delicious, organic, and have no chemicals injected in them. The traditional meals
with roadrunners are usually more expensive in restaurants than meals with broilers. Price of
eggs The end consumer buys eggs at $1 for five from supermarkets, which translates to $6 a
crate. The vendors and tuck-shops sell their eggs at $1 for 5 or $1 for 6. The producers of eggs
supply them to supermarkets and retailers at a price of $4-$4.50, depending on the size of eggs,
branding, and location. MAZAIWANA BRAITHWAITE LAMECK Page 48
49 Industry Analysis Small and medium scale poultry production Many households in the rural
areas keep roadrunners. In Zimbabwe, indigenous chickens are estimated to be 30 million. The
average household flock numbers 20 birds, and is composed of eight chicks, six to seven
growers, four to five hens and one cock. Indigenous poultry and other small livestock is a
preferred method of investment in rural areas where few investment alternatives exist and is used
mostly as cash for exchange even in shops. These chickens play an integral role in the
smallholder farming systems. They are used to meet the multiple household social, economic and
cultural needs. Village chickens are part of the total poultry genetic diversity that comprises of
chickens, turkeys, quails, ducks, goose, guinea fowls and pheasants. Unlike pure breeds and
hybrid layers, village chickens easily go broody and are generally good mothers. The breeding of
village chickens in Zimbabwe is usually at peak from September to April. Poultry management
is usually in the hands of women and children. Women attach more value to chickens while men
value large animals like cattle more. Despite their current importance and future potential, very
little is known about the genetic composition of local chickens in Zimbabwe and most
developing countries. Although village chickens are considered an important genetic reservoir,
the genetic diversity contained in these populations and its distribution has not been
comprehensively quantified. At present local chickens in Zimbabwe are commonly referred to as
village, roadrunner or just indigenous chickens without differentiating them into any populations.
A growing number of farmers are keeping pure breeds of roadrunners for commercial purposes.
The most popular breed is Boschveld. Some breeds which are also kept include Rhode Island,
Australorps, Leghorn, Light Sussex, among others. There are no large scale producers of
roadrunners in Zimbabwe. The farmers who keep pure breeds of roadrunners for commercial
purposes usually have flocks of 500-3000 birds. They usually have contracts with various hotels
and restaurants which they supply. MAZAIWANA BRAITHWAITE LAMECK Page 49
50 The number of producers of eggs has been increasing in the past years in Zimbabwe due to
the high unemployment levels thus people are now resorting to various kinds of projects
including keeping hybrid layers. About 55% of the eggs produced in Zimbabwe are from the
small and medium scale egg producers. These layers projects are found in rural areas,
resettlement areas, A1 farms, A2 farms and in urban areas. Almost all the eggs produced for
commercial purposes in Zimbabwe are from hybrid layers, and not roadrunners. The eggs
produced by small scale poultry producers are usually unbranded rather than branded packaged
eggs. Thus the targeted market of these producers includes the low income to middle income
earners who are sensitive to the price of the branded found in supermarkets. These producers also
supply to restaurants, organisations such as boarding schools, churches, prisons, and other small
supermarkets. Large Scale poultry production These are the big players in the layers industry like
Irvine's and Lunar Chickens. They produce their own day old chicks, which they rear, till they
lay eggs. The large scale producers account for about 45% of the total number of eggs produced
in Zimbabwe. They supply branded packaged eggs to supermarkets and other large
organizations. Competition and Buying Patterns Restaurants, hotels and takeaways tend to buy
from those who are reliable at their supply of chicken, and who also have fair prices. For live
birds, they are more concerned about the weight of the birds, breed and appearance, whether they
appear healthy or not. They also consider the price of the birds. They are willing to establish
relationships and enter into long term supply agreements with suppliers who can reliably deliver
the chicken to them when they need it. There is competition from small scale producers in and
around Harare. Often demand exceeds supply, as the market is not yet flooded with roadrunners.
Many farmers are not able to consistently supply roadrunners every week. For eggs, there is
competition from large scale producers like Irvine s, and also hundreds of local small scale
producers in Harare. Brand names and price are important to consumers when buying eggs from
the large supermarkets. Large supermarkets tend to buy packed eggs from companies such as
Irvine's which are well known, as those eggs are easily marketable. This market segment can be
penetrated with the right marketing and advertising techniques.. For MAZAIWANA
BRAITHWAITE LAMECK Page 50
51 consumers who are buying eggs from the small supermarkets, tuck shops, vendors etc., brand
names are not important, but they consider the size of the eggs, and the price. This segment of
the market can easily be penetrated with good marketing strategies. Supermarkets tend to buy
from those who are reliable at their supply of eggs, and who also have low prices. They are
willing to establish relationships and enter into long term supply agreements with suppliers who
can reliably deliver the eggs to them when they need them. MAZAIWANA BRAITHWAITE
LAMECK Page 51
52 SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses
within the company, and describes the opportunities and threats faced by our company Strengths
Our company will produce roadrunner chickens of high quality and a continual supply of
chickens to customers. There is plenty of water supply at our farm Experienced owner-operator
Good breed of roadrunners Weaknesses Limited Capital No transport of our own Opportunities
The demand for poultry roadrunners meat is large and ever increasing. It is one business that the
opportunity for growth ever remains large. Continuous exploitation and expansion will be the
status of the industry for a long time. Having a hatchery which produces and sells day old chicks.
Producing and selling affordable roadrunners feed. Getting certified to produce organic
roadrunners. Exporting organic roadrunners to other countries. Strategic alliances offering
sources for referrals and joint marketing activities to extend our reach. This will increase our
market share and hence the profit. MAZAIWANA BRAITHWAITE LAMECK Page 52
53 Internet potential for finding more customers. Many poultry businesses are not fully utilising
the internet to find potential customers. Supplying dressed roadrunner chickens to supermarkets
and butcheries. There is a room to expand to other animal farming activities like rabbits, pigs and
cattle fattening. Cheap labour in the market Threats Disease outbreak Decline in chicken demand
Low market prices for chicken Change in government regulations Increase in feed costs
MAZAIWANA BRAITHWAITE LAMECK Page 53
54 PEST Analysis We understand that our business is affected by Political, Economic, Social
and Technological factors. Below we look at how those external factors may affect our business
and the assumptions we have made in making this business plan. Political Change in regulations
which affect the agriculture sector especially poultry farming will affect us. New legislation may
create risks of non-compliance with the law, or create new administrative burdens. The tax
policies of the Government of Zimbabwe will affect the operations of our business. If the
government of Zimbabwe increases the taxes for poultry companies it will affect the profitability
of our business. Political instability like wars, protests will affect our business. Changes in
employment laws, safety regulations especially those targeted to the agriculture industry will
affect the operations of our business. Changes in import tariffs of our inputs or competing
products will affect our business. We expect political stability to continue in Zimbabwe, and we
do not expect any significant changes in the regulations by the government of Zimbabwe.
Economic Liquidity crisis in Zimbabwe which is currently in Zimbabwe will likely continue for
the coming years. This has caused high interest rates. The high interest rates affect the cost of
capital, the rate of interest being directly proportionate to the cost of capital. Rate of inflation
determines the rate of remuneration for employees and directly affects the prices of our services.
Again, the proportion between the inflation rate and wages/prices is direct. Economic trends act
as an indicator of the sustainability and profitability of our business in Zimbabwe and will help
us determine the right marketing strategy. IMF and World Bank are re-engaging with Zimbabwe,
and dollarization also led to the recovery of the Zimbabwean after a decade of recession. These
factors point to economic growth of our Zimbabwean economy, which will mean more business
for the industry as the economy becomes more active and more people get higher disposable
income. Social MAZAIWANA BRAITHWAITE LAMECK Page 54
55 We expect the population growth will continue in Zimbabwe. This will mean more potential
customers and greater demand. We expect that the current HIV-AIDS campaigns which are
being carried out by the government and Non-Government Organisations, will make people
more health conscious, and will lead to a reduction in the cases of HIV-AIDS which will imply a
healthier work force. We expect that the health facilities in Zimbabwe will continue to improve
as the economy recovers, meaning more people will have access to drugs. Technological
Technological improvements can lead to the production of more efficient feed. A good technical
infrastructure would lead to better production, procurement and distribution logistics, resulting in
reduced wastage and lower costs. MAZAIWANA BRAITHWAITE LAMECK Page 55
56 Financial Statements Start-up Costs Item Quantity Unit Cost Total Land Acquisition 1
$5,000.00 $5,000.00 Roadrunner Chicken houses 2 $1,000.00 $2,000.00 Layers chicken house 1
$500.00 $500.00 Incubator 1 $1,000.00 $1,000.00 Nest Boxes 30 $5.00 $150.00 Tubular Feeders
25 $9.00 $225.00 12 litre font 25 $9.00 $225.00 4 litre font 25 $3.00 $75.00 Feed Trays 25 $2.00
$50.00 Roadrunner Heating and lighting $500.00 System Company Registration $300.00
Transport to market(2 cycles) $50.00 Water/year (Borehole) $240.00 Repairs and Maintenance
$100.00 Contingency Cash $100.00 Chick mash Feed(2 cycles advance) 2070 $0.60 $1,242.00
Home made feed(2 cycles advance) 2737 $0.40 $1,094.80 Veterinary Supplies (2 cycle $50.00
advance) Electricity/Gas $200.00 Labour (4 months advance) 4 $150.00 $600.00 Day old chicks
( 3 cycles advance) 1725 $1.00 $1,725.00 Total $15,426.80 Housing We will have two houses
for roadrunners each housing 500 birds, since at any given time we will have two groups of
roadrunners at the farm. We will also have 1 layer house which will shelter our 150 layer birds.
The construction cost range from $20-$40 per square metre depending on various factors such as
materials used, location, and company contracted to build the house. You need about 0.1 square
metres for every bird. Thus for 500 birds you will need 50 square metres. We assumed a
construction cost of $20/square metre. Equipment Necessary MAZAIWANA BRAITHWAITE
LAMECK Page 56
57 1 * feed tray per 50 birds for the first 10 days 1* tubular feeder per 50 birds. 1 x 4 litre font
per 50 birds for the first 7 days 1 x 12 litre font per 50 birds 1 nest box per 5 layers Roadrunners
Business Plan 2016 Heating and Lighting system This includes the cost for gas brooders which
provide heat to the chicks and bulbs. MAZAIWANA BRAITHWAITE LAMECK Page 57
58 Pro Forma Income Statement Year 1 Year 2 Year 3 Revenue Roadrunner Sales $20,000.00
$28,600.00 $24,000.00 Egg Sales @ $4.20 a crate $2,646.00 $4,725.00 $4,725.00 Cost of eggs
sold $1,581.60 $2,184.60 $1,941.00 Cost of roadrunners sold $7,230.00 $7,917.00 $6,786.00
Gross Profit $13,834.40 $23,223.40 $19,998.00 Operating Expenses Salaries $1,800.00
$1,800.00 $1,800.00 Water $240.00 $240.00 $240.00 Depreciation $650.00 $650.00 $650.00
Company Registration $300.00 $0.00 $0.00 Repairs and maintenance $300.00 $300.00 $300.00
Contingency $500.00 $500.00 $500.00 Total Operating Expenses $3,790.00 $3,490.00 $3,490.00
Net Profit Before Tax $10,044.40 $19,733.40 $16,508.00 Tax (25%) $2,511.10 $4,933.35
$4,127.00 Net Profit After Tax $7,533.30 $14,800.05 $12,381.00 Assumptions The business will
follow the production plan which is outlined under the Operational strategy section, meaning that
in year 1 we will sell 2500 roadrunners & 630 egg crates; year 2 we will sell 3500 roadrunners,
150 off-layers, and 1125 crates of eggs; year 3 we will sell 3000 roadrunners & 1125 crates of
eggs. The roadrunners will be sold at $8 each, off layers at $4 each, and eggs at $4.20 a crate
MAZAIWANA BRAITHWAITE LAMECK Page 58
59 The business will employ one person who will be paid $150/month Contingency is a
provision for other smaller expenses and unpredictable expenses The costs of eggs sold & costs
of roadrunners sold are calculated from the tables shown below. The feed quantities are
calculated using the guidelines outlined under How much to feed in free range systems? which is
under the Operational Requirements section. Chick starter mash is $0.6/Kg, while homemade
feed is calculated assuming maize cost of $300/tonne, soya meal cost of $600/tonne, and milling
cost of $50/tonne. The soya meal and maize will be mixed in the ratio 1:5. MAZAIWANA
BRAITHWAITE LAMECK Page 59
60 Variable Costs per Cycle (Roadrunners) Roadrunners Business Plan 2016 Quantity Unit Total
Cost Feed (Chick Mash) Kgs 900 $0.60 $540.00 Feed (Home made) Kgs 1190 $0.40 $476.00
Veterinary Supplies 500 $0.05 $25.00 Disinfectants 500 $0.01 $5.00 Litter 500 $0.02 $10.00
Transport to market 500 $0.05 $25.00 Electricity/Gas 500 $0.10 $50.00 Total (Without buying
dayold $1,131.00 chicks) Day old chicks 525 $1.00 $525.00 Total (Buying dayold chicks)
$1,656.00 Variable Costs Year 1 for layer Item Quantity Unit Total Cost Egg Crates 630 $0.20
$126.00 Electricity/Gas 12 $20.00 $240.00 Feed (Chick Mash)Kgs 270 $0.60 $162.00 Feed
(Home made) Kg 2634 $0.40 $1,053.60 Veterinary Supplies 150 $0.05 $7.50 Day old chicks 150
$1.00 $150.00 Total $1,581.60 MAZAIWANA BRAITHWAITE LAMECK Page 60
61 Variable Costs Year 2 for layers Item Quantity Unit Total Cost Egg Crates 1125 $0.20
$225.00 Electricity 12 $20.00 $240.00 Feed (Chick 270 $0.60 $162.00 Mash)Kgs Feed (Home
made) Kg 3894 $0.40 $1,557.60 Total $2,184.60 Variable Costs Year 3 for Layers Item Quantity
Unit Total Cost Egg Crates 1125 $0.20 $225.00 Electricity 12 $20.00 $240.00 Feed (Chick
Mash)Kgs 270 $0.60 $162.00 Feed (Home made) Kg 3285 $0.40 $1,314.00 Total $1,941.00
MAZAIWANA BRAITHWAITE LAMECK Page 61
62 Pro Forma Cash flow Statement Year 1 Year 2 Year 3 Opening Balance $0.00 $16,396.20
$34,268.50 Cash Sales $22,646.00 $33,325.00 $28,725.00 Subtotal Cash from $22,646.00
$33,325.00 $28,725.00 Operations Additional Cash Received Start-up Capital $15,426.80 $0.00
$0.00 Subtotal Cash Received $15,426.80 $0.00 $0.00 Cash Expenditures Feed, Water and Vet
purchases $8,811.60 $10,101.60 $8,727.00 Operating Expenses $3,140.00 $2,840.00 $2,840.00
Subtotal Spent on $11,951.60 $12,941.60 $11,567.00 Operations Additional Cash Spent Taxes
$0.00 $2,511.10 $4,933.35 Loan Repayment $0.00 $0.00 $0.00 Bank Overdraft Repayment
$0.00 $0.00 $0.00 Purchase Fixed Assets $9,725.00 $0.00 $0.00 Subtotal Additional Cash Spent
$9,725.00 $2,511.10 $4,933.35 Net Cash Flow $16,396.20 $17,872.30 $12,224.65 Cash Balance
$16,396.20 $34,268.50 $46,493.15 MAZAIWANA BRAITHWAITE LAMECK Page 62
63 Pro Forma Balance Sheet Year 1 Year 2 Year 3 Long Term Assets Land $5,000.00 $5,000.00
$5,000.00 Buildings $2,500.00 $2,500.00 $2,500.00 Equipment $2,225.00 $2,225.00 $2,225.00
Accumulated -$650.00 -$1,300.00 -$1,950.00 Depreciation Total Long Term $9,075.00
$8,425.00 $7,775.00 Assets Current Assets Cash $16,396.20 $34,268.50 $46,493.15 Accounts
Receivable $0.00 $0.00 $0.00 Inventory $0.00 $0.00 $0.00 Other Current Assets $0.00 $0.00
$0.00 Total Current Assets $16,396.20 $34,268.50 $46,493.15 TOTAL ASSETS $25,471.20
$42,693.50 $54,268.15 EQUITY AND LIABILITIES Equity Share Capital $15,426.80
$15,426.80 $15,426.80 Retained Earnings $7,533.30 $22,333.35 $34,714.35 Total Equity
$22,960.10 $37,760.15 $50,141.15 Liabilities Current tax payable $2,511.10 $4,933.35
$4,127.00 Accounts Payable $0.00 $0.00 $0.00 Other Liabilities $0.00 $0.00 $0.00 Total
Liabilities $2,511.10 $4,933.35 $4,127.00 TOTAL EQUITY AND LIABILITIES $25,471.20
$42,693.50 $54,268.15 MAZAIWANA BRAITHWAITE LAMECK Page 63
64 Break Even Analysis Breakeven Value Analysis Selling Price/Unit $8.00 Variable Cost/Unit
$2.26 Annual Fixed $3,140.00 Costs Breakeven point 547 Thus we should sell at least 555
roadrunners annually for our revenue to cover all our costs. Payback Period Analysis Payback
Period Analysis Initial Investment Net Cash flow year 1 Net Cash flow year 2 Payback Period
Value $15,426.80 $16,396.20 $17,872.30 0.95 Therefore it will take us a year to recover the
costs of our initial investment. MAZAIWANA BRAITHWAITE LAMECK Page 64
65 Risk Analysis These risks could materially adversely affect our business, financial condition
or results of operations. Additional risks and uncertainties not currently known to us or that we
currently deem to be immaterial also may materially adversely affect our business, financial
condition or results of operations. Fluctuations in the availability and price of raw materials,
especially stock feeds, maize and soya meal and other inputs could negatively impact our
earnings. Our results of operations and financial condition, as well as the selling prices for our
products, are dependent upon the cost and supply of commodities and raw materials such as
stock feeds, maize and soya meal. Production and pricing of these commodities are determined
by constantly changing market forces of supply and demand over which we have limited or no
control. Such factors include, among other things, weather patterns throughout the world,
outbreaks of disease, the global level of supply inventories and demand for grains and other feed
ingredients, as well as agricultural and energy policies of domestic and foreign governments.
Volatility in our commodity and raw material costs directly impact our gross margin and
profitability. The company s objective is to offset commodity price increases with pricing actions
over time. However, we may not be able to increase our product prices enough to sufficiently
offset increased raw material costs due to consumer price sensitivity or the pricing postures of
our competitors. In addition, if we increase prices to offset higher costs, we could experience
lower demand for our products and sales volumes. Conversely, decreases in our commodity and
other input costs may create pressure on us to decrease our prices. Outbreaks of livestock
diseases can adversely impact our ability to conduct our operations and demand for our products.
Demand for our products can be adversely impacted by outbreaks of poultry diseases, which can
have a significant impact on our financial results. Efforts are taken to control disease risks by
adherence to good production practices and extensive precautionary measures designed to ensure
the health of our roadrunners. However, outbreaks of disease and other events in MAZAIWANA
BRAITHWAITE LAMECK Page 65
66 Zimbabwe, which may be beyond our control, in our own poultry farm could significantly
affect demand for our products, consumer perceptions of certain protein products, the availability
of livestock for purchase by us and our ability to conduct our operations. Outbreaks in our own
poultry farm may lead to the death of all our birds. Moreover, the outbreak of livestock diseases,
particularly in our Chicken segment, could have a significant effect on the livestock we own by
requiring us to, among other things, destroy any affected livestock. Furthermore, an outbreak of
disease could result in governmental restrictions on the import and export of our products to or
from our suppliers, facilities or customers. This could also result in negative publicity that may
have an adverse effect on our ability to market our products successfully and on our financial
results. If our products become contaminated, we may be subject to product liability claims and
product recalls. Our products may be subject to contamination by disease-producing organisms
or pathogens, such as Listeria monocytogenes, Salmonella and E. coli. These organisms and
pathogens are found generally in the environment; therefore, there is a risk that one or more, as a
result of food processing could be present in our products. These organisms and pathogens also
can be introduced to our products as a result of improper handling at the further processing,
foodservice or consumer level. These risks may be controlled, but may not be eliminated, by
adherence to good manufacturing practices and finished product testing. This may lead to
increased risk of exposure to product liability claims, increased scrutiny and penalties, including
injunctive relief and plant closings by Zimbabwe regulatory agencies, and adverse publicity,
which could exacerbate the associated negative consumer reaction. Any of these occurrences
may have an adverse effect on our financial results. Changes in consumer preference could
negatively impact our business. The food industry in general is subject to changing consumer
trends, demands and preferences. Trends within the food industry change often, and failure to
identify and react to changes in these trends could lead to, among other things, reduced demand
and price reductions for our brands and products. We strive to respond to consumer preferences
and social expectations, but MAZAIWANA BRAITHWAITE LAMECK Page 66
67 we may not be successful in our efforts. We could be adversely affected if consumers lose
confidence in the safety and quality of certain food products, or the food safety system generally.
Prolonged negative perceptions concerning the health implications of certain food products or
loss of confidence in the food safety system generally could influence consumer preferences and
acceptance of some of our products and marketing programs. Continued negative perceptions
and failure to satisfy consumer preferences could materially and adversely affect our product
sales, financial condition and results of operations. New or more stringent Zimbabwean
government regulations could impose material costs on us and could adversely affect our
business. Changes in laws or regulations that impose additional regulatory requirements on us
could increase our cost of doing business or restrict our actions, causing our results of operations
to be adversely affected. The government of Zimbabwe may remove the high import duty on
poultry products. This will lead to the Zimbabwean market being filled with cheap imported
chickens, which will be difficult to compete with. Thus the demand of local chicken will
decrease, and it will also force the prices of our products down, which will adversely affect our
product sales, financial condition and results of operations. Deterioration of economic conditions
could negatively impact our business. Our business may be adversely affected by changes in
Zimbabwe economic conditions, including inflation, interest rates, consumer spending rates,
energy availability and costs and the effects of governmental initiatives to manage economic
conditions. Any such changes could adversely affect the demand for our products, or the cost and
availability of our needed raw materials, and packaging materials, thereby negatively affecting
our financial results. The loss of one or more of our largest customers could negatively impact
our business. Our business could suffer significant setbacks in sales and operating income if our
customers plans and/or markets change significantly or if we lost one or more of our largest
customers. Our retail customers typically do not enter into written contracts, and if they do sign
contracts, they generally are limited in scope and duration. There can be no assurance that
significant customers will continue to purchase our products in the same mix or quantities or on
the same terms as in MAZAIWANA BRAITHWAITE LAMECK Page 67
68 the past. The loss of a significant customer or a material reduction in sales to, or adverse
change to trade terms with, a significant customer could materially and adversely affect our
product sales, financial condition and results of operations. The prices we receive for our
products may fluctuate due to competition from other food producers and processors. The food
industry in Zimbabwe is intensely competitive. We face competition from other food producers
and processors that have various product ranges and geographic reach. Some of the factors on
which we compete include: pricing, product safety and quality, brand identification, innovation,
breadth and depth of product offerings, availability of our products and competing products,
customer service, and credit terms. If we reduce prices but we cannot increase sales volumes to
offset the price changes, then our financial condition and results of operations will suffer.
Alternatively, if we do not reduce our prices and our competitors seek advantage through pricing
or promotional changes, our revenues and market share would be adversely affected. Extreme
factors or forces beyond our control could negatively impact our business. Our ability to make,
move and sell products is critical to our success. Natural disasters, fire, theft, pandemic or
extreme weather, including droughts, floods, excessive cold or heat, hurricanes or other storms,
could impair the health or growth of birds or interfere with our operations due to power outages,
fuel shortages, damage to our production and processing facilities or disruption of transportation
channels, among other things. Any of these factors could have an adverse effect on our financial
results. Theft & Vandalism There is a risk that our poultry farm may be subject to theft and
vandalism. This could have an adverse effect on our financial results, as we might end up losing
our birds. Predators can also kill birds on our farm. MAZAIWANA BRAITHWAITE LAMECK
Page 68
69 Potential Sources of Finance Equity Financing Equity financing means exchanging a portion
of the ownership of the business for a financial investment in the business. The ownership stake
resulting from an equity investment allows the investor to share in the company s profits. Equity
involves a permanent investment in a company and is not repaid by the company at a later date.
Personal Savings Not everybody has savings but if you do, they are a good place to start. If you
don t have savings yet, now is a good time to start. Your timeline for starting your business may
be six months to a year anyway, so if you start putting money away now, you ll have at least a
starting point from which to raise more cash. Starting a business is about sacrifice and so you
should cut down your lifestyle as far as possible and save the cash, you ll be glad you did. Come
up with a savings plan, save a certain percentage e.g. 20% of your salary/income towards start-up
capital for your business. Open a savings account with a reputable bank. Be disciplined. Cut your
expenses. Yes, with proper planning you can do it. Yes, it will take time, but it s worth it. A year
from now you will wish you had started today. Friends and Relatives Founders of a start-up
business may look to private financing sources such as parents or friends. It may be in the form
of equity financing in which the friend or relative receives an ownership interest in the business.
However, these investments should be made with the same formality that would be used with
outside investors. Venture Capital Venture capital refers to financing that comes from companies
or individuals in the business of investing in young, privately held businesses. They provide
capital to young businesses in exchange for an ownership share of the business. Venture capital
firms usually don t want to participate in the initial financing of a business unless the company
has management with a proven track record. Generally, they prefer to invest in companies that
have received significant MAZAIWANA BRAITHWAITE LAMECK Page 69
70 equity investments from the founders and are already profitable. In Zimbabwe we have few if
any venture capital firms. Angel Investors Angel investors are individuals and businesses that are
interested in helping small businesses survive and grow. So their objective may be more than just
focusing on economic returns. Although angel investors often have somewhat of a mission focus,
they are still interested in profitability and security for their investment. So they may still make
many of the same demands as a venture capitalist. Angel investors may be interested in the
economic development of a specific geographic area in which they are located. Angel investors
may focus on earlier stage financing and smaller financing amounts than venture capitalists.
Angel investors are hard to come by in Zimbabwe. To get one, you need strong networking at
many business functions where you can try to befriend the wealthy. Debt Financing Debt
financing involves borrowing funds from creditors with the stipulation of repaying the borrowed
funds plus interest at a specified future time. For the creditors (those lending the funds to the
business), the reward for providing the debt financing is the interest on the amount lent to the
borrower. Debt financing may be secured or unsecured. Secured debt has collateral (a valuable
asset which the lender can attach to satisfy the loan in case of default by the borrower).
Conversely, unsecured debt does not have collateral and places the lender in a less secure
position relative to repayment in case of default. Debt financing (loans) may be short term or
long term in their repayment schedules. Generally, short-term debt is used to finance current
activities such as operations while long-term debt is used to finance assets such as buildings and
equipment. Friends and Relatives There are a number of pitfalls associated with borrowing from
friends and family; on the positive side, such borrowing arrangements can often be made on
more attractive terms than might otherwise be available from a more formal source of funding.
For example, it may be possible to MAZAIWANA BRAITHWAITE LAMECK Page 70
71 borrow either without any form of security against the loan and it may also be possible to
borrow at either a lower rate of interest, or even interest free. Repayments may also be possible
over an extended period of time and a detailed business plan may not be necessary. It is best to
keep any arrangement formal, however, and to give your benefactor as much financial
information as possible upfront. You will be responsible for their money and as such it is in
everyone s interest to manage your money effectively Banks and Other Commercial Lenders
Banks and other commercial lenders are popular sources of business financing. Most lenders
require a solid business plan, positive track record, and plenty of collateral. These are usually
hard to come by for a start- up business. Once the business is underway and profit and loss
statements, cash flows budgets, and net worth statements are provided, the company may be able
to borrow additional funds. It is usually easier to get loans from local owned banks like CABS,
CBZ, and ZB. You will have to take a personal loan, as they rarely fund start-ups. We do not
advise borrowing money from micro-financial institutions to start a business. Their interest rates
are too high and unsustainable. MAZAIWANA BRAITHWAITE LAMECK Page 71
72 Top reasons for failure of poultry business in Zimbabwe Lack of Technical Know-how It is
regrettable that many people and organizations have ventured into poultry farming without
technical knowledge. Knowledge of poultry farming techniques is required before anyone can
operate the business profitably. Make sure you attend a workshop for poultry production before
you start the business. Management Problem An incompetent management may not be able to
operate a profitable poultry farm. The managers of the farm must know what they are employed
to do and possess the ability to do it. Some poultry managers fail to recognize the peculiarity of
poultry farming in their management style, thereby preparing good ground for losses in the
venture. Many managers do not recognize the need for timely planning and control in running
the farm. Hygiene Deficiency There is a minimum hygiene condition that must exist in any
poultry farm if the birds are to remain healthy and produce maximally for profit. The poultry
farm must be kept clean always; the droppings should be cleared on time before they constitute
an agent of disease. Security A poultry farm must be established in a secured place to ward off
enemies of birds, such as rats, soldier ants, snakes, wild birds, etc. Most of these enemies are
agents of disease that could lead to an epidemic on the farm, and they kill the birds directly as
well. There must be strict check on the farm workers who may be stealing the fowls. Also,
visitors may constitute a problem to the farm if they are not properly checked. Housing Birds
need minimum space and convenient place to grow well and produce maximally meat. Birds are
spaced on the farm according to their ages; while the chicks need little space, growers and
mature birds need more space and ventilation to perform well. The services of a consultant
MAZAIWANA BRAITHWAITE LAMECK Page 72
73 may be needed to determine the appropriate spacing for the birds without which they may
suffocate to death, which will be a big loss to the business. Inability to prevent, detect and
control disease It is often said that prevention is better than cure, as far as disease are concerned
and this is a true statement and relevant one to poultry farming. A poultry farmer should know
how to prevent poultry disease, as well as how to cure them. If he or she does know anything
about preventive measures, the services of consultants in the field should be engaged for good
result. Marketing A marketing plan is absolutely necessary for successful commercial poultry
farming, as any farmer ignorant of his or her marketing needs is bound to run into serious losses
and eventual failure. It will be ridiculous to start poultry production without knowing when,
where, how and to whom to sell the fowls, feathers and droppings as they are produced. We
cannot talk of profit if the meat has no ready market. Also, birds not sold at the appropriate time
will be fed at an extra cost that may make the business unprofitable. Therefore, adequate
marketing strategies are needed to sell all the poultry products at the appropriate time and prices.
Ignoring the role of livestock consultants There are always practicing experts in every profession
or occupation who function as consultants. They are there to proffer solutions to problems that
exist in such professions at a minimum cost. Where a livestock farmer doesn t have adequate
technical and managerial experience, he or she can consult experts for necessary advice to bridge
the gap. Even where the farmer thinks he or she has all it takes to run a farm successfully, there
may be need to seek the services of experts in the field, as it is usually said that two heads are
better than one. MAZAIWANA BRAITHWAITE LAMECK Page 73