FOUNTAIN GROUP
Poultry Business Plan
1.0 Executive Summary:
On this front, the Fountain Group’s focal point of action in poultry farming is the aspect of meat
production for domestic and international market. The estimated scale of operation is 4500birds
each round. Meat production involves basically the acquisition of Broiler day – old birds from a
reputable source for rearing to the weight of at least 2kg attainable within forty five days.
Steady supply of day- old birds(most limiting factor) will be guaranteed by establishing a
concrete supply arrangement with the suppliers of day- old birds to avoid supply inconsistencies
since supply trend of day- old birds always recorded shortages relative to demand.
We target production of healthy and quality chicken as cheaply as possible to give us a
competitive advantage over our numerous competitors.
1.1 Overview:
The profitability margin imminent in poultry farming (meat production) is directly proportional
to the number of rounds of a given quantity of day - old chicks raised per year. The frequency of
getting day-old chicks for rearing for meat production is solely dependent on the consistency of
the suppliers of the day – old birds implying any successful plan for farmers in the domain of
meat production should begin by securing a steady supply of day - old birds since any failure in
the side of the suppliers will imply paying salaries to poultry workers for no work done.
Business Description:
The Business plan of Fountain Group on this sector encompasses the acquisition of day- old
birds and rearing to maturity to produce quality and healthy table birds as cheaply as possible
for marketing both domestically and internationally. Domestic markets will include; navigating
ships, Hotels, Cold Stores and butchers of large urban markets.
Mission and Vision:
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To build a committed and motivated work force composed of four departments:
production, Sales/ marketing, accounting and Human Resource all linked by an
information system from the IT department. Therefore our mission will secure
employment for a great number of people. (See staff and labour plan attached).
Produce healthy and quality birds to enhance an increase in meat production and
consequently increase in standards of living.
To access distant markets to make table birds at the reach of all.
Exportation of meat will increase GDP and foreign currency reserve.
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Build a mechanized, efficient and rewarding poultry
Generate organic manure from poultry waste to carter for our crop production department
and other food crop farmers.
1.2 Value Proposition:
A. Expertise: There is no guess work in the poultry business we depend on home
employment of expertise in our spheres of influence and also considering that
consultancy is paramount. Training and retraining of staff and workers is important
no matter how small the level and acquisition of knowledge of modern trend might
be, it is a great contributing factor to growth also considering the non- professional
nature of some staffs in certain activities. This will enable all concerned to have
cross functional responsibilities to cover sick and absent cases.
B. Housing: A temporal well-ventilated and spacious poultry pen measuring 16m
x 35m, a store and a room of 4m x 4m each will be constructed on the temporal
site. The pen will be positioned to give the birds maximum ventilation and reduce
heat. Space requirement should be 8birds per m2 (See attached plan)
A permanent site will be acquired for permanent structures in the near future.
C. Biosecurity: Control measures on the spread of disease such as; Foot bath, car
bath, prohibition of unauthorized persons etc. will be implemented. A veterinary
technician will also be implored to monitor birds on a periodic basis.
Waste treatment and management is a fundamental aspect to consider since any
mismanagement of waste will cause air pollution and will be environmentally
unfriendly for habitation.
D. Water: The most preferred water source is a borehole duct on the poultry site,
however ,because this is not feasible on a temporal site other sources of natural,
clean and uncontaminated water for the poultry use will be exploited to ensure
steady water supply is always available for birds and workers.
90No Manual drinkers will be required for the 4500birds. Daily water requirement
is at least 24litres per 100birds. The water requirement will increase with increases
in the age of the birds.
E. Feeding and Feed Nutrient: A key aspect of poultry farming is feeding. It
makes up about 70% of total cost of production. Average feed requirement being
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4.5kg per bird within 45 days. The birds are systematically introduced to four feed
types composed in different ratios of the inputs. Changes from one feed type to
another made forth – nightly in the life of the bird done in a systematic manner.
The feed nutrients used in feed composition will be gotten from a reputable
supplier readily available in Douala. We lay emphasis on securing a steady and
cheap supply of corn as it makes up 44% to 62% of the requirements of different
feed formulations.
Any misbehavior in livestock farming concerning feeding especially slows down
growth of birds. The daily feed requirement of the birds must be respected by
poultry attendants else there will be the risk of not delivering mature birds at the
expected time. It is not required to cause delay in the maturity of the birds because
each additional day at advanced stages of the birds is very costly to support and
increases cost dramatically.
A total of 90No manual feeders will be required to support feeding of 4500 birds.
F. Sales/ marketing: Sales will be under the control of the marketing supervisor
who will be required to do much ground work to acquire and constantly expand the
customer base and also secure loyal customers for the company through the
provision exceptional services. Online advertisement via the company’s website
will be done and the entire team of Fountain Group has the responsibility to
contribute enormously on this aspect by making effective communication about
our products at any given opportunity and creating awareness to the marketing
supervisor on any opportunity thereof.
We reckon with the fact that the profitability of poultry farming lies in the number
of birds sold daily during maturity so that after each sales there should be a
significant decrease in feed consumption to reduce feeding cost.
Post production failures lies in the inability to sell the birds as fast as possible to
reduce cost of feeding.
Marketing will be done in 2 ways: - sale of live birds and slaughtering / Defeathering on a customized basis. Slaughtering requires proper hygiene in
handling, presentation and packaging. Slaughtered birds should cost a little more
than life birds to cover the extra cost of preparation and packaging.
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Live birds could either be delivered on the poultry by attendants on the
recommendation of the marketing supervisor or transported to the market
alongside the marketing supervisor. Transportation is also a technical issue since
birds taken out to the market should not be returned to the poultry to avoid
contamination of the entire pen. Transportation will require a transportation vehicle
preferably a Dyna owned and managed by the company and also transportation
cages. The carrying capacity of a cage will depend on the distance of the customer
and the size of the birds. The required practice should be 20birds of 2kg per cage
over average distances.
A minimum of 30No plastic cages will be required if daily transportation quantity
is 600birds requiring sales of 4500birds within 7.5days.
A system for payment, cash management will be implemented by the accounting
department who will be supervising the marketing department, while liaising with
the production department for production information.
G. Management: Quality production, minimization of cost, coordination of line of
activities, budget preparation, Statements of income, statement of financial
position will be the key responsibility of management staffs of each department
based on their activities.
Birds, feed, money, fixed assets and even drugs theft will be properly monitored
and prevented by putting in place standard requisition procedures for the treatment
of issues like; Cash handling, feed handling, equipment handling, birds handling /
death disposal, and medication.
Monitoring of deviations and taking corrective measures where ever and whenever
necessary will be done by the control management staff and also ensuring that the
standard management price set for products be respected by Sales agents and
drivers as the practices of imposing an extra amount for individual benefits will
slow down the sales volume since there is perfect information by the customers
and competitors.
Effective management of the above is critical factors to enhance business success.
H. Administration: Recognizing the fact that for any business success, ownership
should be divorced from owner and on every aspect the business should be given
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the status of a separate entity with rule, regulations and binding agreement to be
communicated by the HRM and to be respected by all employees.
Absentee farming is hazardous implying anyone with a stake in the venture should
give in quality time for it to survive.
1.5 Contribution to National and local economy:
Our activities are geared towards exploiting profitable agro - related activities on
production and merchandising fronts, to generate employment to many ranging
from; management staffs, Poultry workers Supervisors, support staffs, Drivers,
Watchmen , feed processing workers, supplier and partners.
Nationally, we shall contribute to the GDP of the country and increase foreign
exchange earnings from the exportation of chicken to neighboring countries,
increase the supply of meat thus reducing the upward pressure on prices.
Anticipated exports will improve the balance of payment situation of the country,
investors shall also find a means of expressing their entrepreneurial skill in this
business and manure from poultry waste will service proximal maize and tomatoes
farms. The overall impact on the economy will be positive!
1.6 Operational Detail:
Poultry workers farm attendants and manager get to the pen latest 6:30am. Mix
disinfectant and pour at the entrances, change into recommended body and foot
wears, disinfect their legs and hands. Each nest is observed for discomfort birds
sick or dead. Such animals are then culled and recorded. Water is checked manual
drinkers are filled with water, and Feed (already measured) is given to the birds by
evenly distributing to the birds, medications given as per the disease prevention
schedule. All efforts should be geared towards ensuring that at least 70% of birds
will attain 2kg weight in 45days.
2.0 Staff Housing:
Attendants should be in close proximity to the pen house for the sake of emergency
situations such as; insect attack, snake attack, brooding and security requiring
construction of staff house on the site.
2.1 Land Infrastructural:
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A temporal site of 715m2 will be rented to start up activities while surveying a
permanent site for the future to accommodate modernization and expansion.
3.0 Production schedule for Poultry:
S/No
Operation
1
Pen House construction
2
Affirmation and payment of day - old
supply
3
Preparation of pen( bedding collection/
placement, heating materials, feeder and
drinkers)
4
Disinfection and heating of brooding
room
5
Vaccination of unvaccinated day – old
birds
6
Brooding
7
Feeding
8
Water
9
Medication
10
Litter management
Time
2 months in advance
3weeks before of receive of day- old
1week before receive of day – old
1 day before day – old birds are
received.
Day of receive of day old bird
Day 1 to Day 7
Day 1 to End
Day1 to End
See medication schedule
Weekly
3.1 Quality Control: Biosecurity measures will be put in place to prevent disease
outbreak. Foot bath for visitors and workers will be put in place at the entrances.
Every vehicle coming into the facility will also pass through a bath and get
sprayed. All quality control standards will be adhered to strictly so as to produce a
world class standard. Animals and materials will be kept away from the poultry
pens. Biosecurity training will be mandatory given to attendants and other staff.
3.2 Marketing Plan:
The Fountain Group shall depend on its marketing department working full time to sell
mature birds to middle men, cold sores, Hotels sailing Ships through web based
and outdoor advertisement to create a wider customer base. Customers will be
supplied at the poultry for smaller quantities or to the destination market for larger
quantities. All customers shall be notified when birds ready for market by the
marketing supervisor. Sales and sales revenue will be controlled by the accounting
department.
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3.3 Projected Profit:
Our profit margin should be at least 500fcfa. per bird With production cost always
monitored to achieve this profit margin very feasible to attain if all success
measures are respected.
Our failure rate should not exceed 4%. With this operational detail we project a
profit of (4320birds x 500) 2,160,000 on every consignment of 4500birds.
3.4 Cash Flow Projection:
The projected cash flow for the Farm will be presented on the budget. Positive net
cash balances are not expected during the initial periods due to heavy expenditures
like installation cost, equipment and tools. However, from the profit projections the
project shows profitable and will cover its fixed cost in the long run period.
Conclusion: The fountain Group shall be successful in its activities. Its efficiency and
productivity is a product of bringing together of all the available human and
material resources, this can never be provided enough by just one individual or
department, hence we plan to collaborate in conception and implementation.
We urge all to work tirelessly in a team, motivated and leadership spirit expressing
good behavior to stakeholders and third parties. Any sector can only work
effectively as a network with different departments, bringing in diverse inputs of
ideas and contribution. We trust God for a fruitful effort!
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