SETTING UP A POULTRY PROCESSING PLANT

• Manufacturing
• Poultry

Introduction
This project idea is based on the need to add value by processing chicken to reduce on the rudimentary form that is dangerous to human consumption. An estimated fixed cost of 32,120US$ and operating costs of 568,250US$, when utilized can generate a total revenue of 100US$ from the sale of 101,400 birds of one and a half kilograms and above in weight in the first year of operation.
Production Capacity, Technology and Process

The production process is very simple only that it has to be automated. The process involves collecting the chicken birds, and then cleans them up, pass them to the automated head remover machine where the head is cut, speciallised conveyers them transfer the killed birds to the automated picking machine which picks and plucks the feathers off the birds and this limits also incidences of product bruising. After plucking and picking is done, the birds is passed to the eviscerating equipment where the birds are “gutted”ie the birds body opened and the internal organs removed except for the kidney. The kidney can be manually removed and then the birds are packed and stored in a chilling machine ready for distribution.
Investment Scale, Capital Requirement and Equipment
The investment scale required is somehow large especially in acquisition of the equipment but some modern automated equipments at relatively small scale production can be acquired and these may include those as tabled bellow
Capital Investment Requirements

Production and Operating Costs
(a)Direct materials, Supplies and Costs

1) Production costs assumed 312 days per year with daily capacity of processing 325 birds.
2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
3) Direct costs include materials, supplies and other costs that directly go into production of the product.
4) Total monthly days assumed are 26-days.
5) The valuation currency used is United States Dollars.
Market Analysis
Chicken is widely consumed in many households in the country especially in urban centers where packed chicken is the more consumed than the buying of live birds to be prepared at home locally. Ugachic is the major key player in this industry.
Project product costs and price Structure

Profitability Analysis Table

Incentives
The Government has put aside an Agricultural fund and there is an European Investment Fund targeting such areas of investment.