MAYANASAGWADI AGRICULTURAL PRIMARY

CO-OPERATIVE LIMITED

Business Name : MAYANASAGWADI AGRICULTURAL PRIMARY CO-OPERATIVE LIMITED

Address : Stand No. 10, Homu 14c, Giyani, 0826

EXECUTIVE SUMMARY..............................................................................................................3
INTRODUCTION............................................................................................................................. 4

Organizational Profile......................................................................................................................4

OBJECTIVES.................................................................................................................................. 6

Overall Goal.................................................................................................................................... 6

Specific Objectives.........................................................................................................................6

ACTIVITIES................................................................................................................................ 6-7

Justification of the poultry venture.................................................................................................7

Expected Results............................................................................................................................ 8

MANAGEMENT AND IMPLEMENTATION OF THE POULTRY FARMING BUSINESS................8

Implementation........................................................................................................................... 8-9

Financial Management...................................................................................................................9

MARKET ANALYSIS.................................................................................................................... 10

Marketing Strategies.....................................................................................................................11

Distribution.................................................................................................................................... 11

Profile of Competitors.................................................................................................................... 11

SWOT Analysis............................................................................................................................. 12

Strengths....................................................................................................................................... 12

Weaknesses.................................................................................................................................. 13

Opportunities................................................................................................................................. 13

Threats.......................................................................................................................................... 13

Conclusions ................................................................................................................................... 14

1
 Confidentiality Agreement

The undersigned reader acknowledges that any information provided by in this business
plan, other than information that is in the public domain, is confidential in nature, and that any disclosure or use
of same by the reader may cause serious harm or damage to _. Therefore, the undersigned
agrees not to disclose it without express written permission from _.

Upon request, the undersigned reader will immediately return this document to _.

_
Signature

_
Name (typed or printed)

_
Date

This is a business plan. It does not imply an offering of securities.

2
 EXECUTIVE SUMMARY

Table Egg production via the process of raising poultry layer birds from Point of Lay (POL) for the purpose
of producing table eggs and birds using battery cage. 2,400 POL birds, feeding and medication of the birds
and sales of eggs and spent layers produced from them in the first one and half year after construction,
increasing the number thereafter 5,000Birds in the second year utilizing Day Old Chicks, 10,000capacity in
the third, and 20,000 in the fifth. In the first year, at peak production, the farm should produce about 60
crates (30 eggs/crates) per day and generate R 550 000 in revenue and about grossly R 420 000 as gross
profit after deduction of cost of feed on monthly basis. Spent layers would be sold at the end of one year
of lay and utilized in the purchase of replacement birds. Annual revenue could be up to R 700 000 and
profit grossly could be up to +/- 560 000 in the first year. At full capacity, the project, housing 20,000 laying
birds would generate up to R 1 500 000.00 in net profit every year.

Business Overview

Egg production is the most popular form of poultry farming because egg consumption cut across wide
divide. Poultry production come in different forms ranging from parent stock breeder meat
(broiler/production), egg production, Quail production, turkey production, ostrich farming, duck farming,
Geese farming and ornamental bird rearing among other. The business could also come in specialization
such as brooding, Point of Lay production, liquid egg package, egg trading, cold-room marketing, day old
chicks, feed milling, birds transportation or egg deport business. Because of the vastness of this industry,
entrepreneurs focus will be on an aspect and with time add other aspect either for vertical or horizontal
integration in Nigeria, this industry is still grossly untapped and any part of the industrial possess great
potential. Specialization and continuous improvement on skills is always paramount. Poultry industry is a
multi-billion Rand industry: The major hindrances to the growth of the industry in South Africa ranges
from absence of credit, high interest rate, and high cost of maize, unavailable electricity which is important
3
for cold rooms, incubators and operation of automated cages. Because of the fallow nature of the industry
in South Africa, the prospect is high. Right now the demand for egg, broiler meat, day old chicks, day old
poultry etc remain overwhelmingly high

Description of Business

Mayanasagwadi Agricultural Primary Co-Operative Limited’s plan to participate in chicken egg production
to become the most go to for eggs and white meat.

The business entails keeping of chicken from (Day old to) fourteen weeks when the growers will be transfer
to cages. The caged birds at the age of 19 – 22 weeks start to lay eggs. The eggs are packed in crates of 30
packs, transported to the city where they are distributed to customers. The laying birds by the age of 60 to
75 weeks of laying, are sold out as spent layers for meat.

Vision and Mission

To produce nutritious eggs, generate employment, and create wealth for investor. Mission:-Build a
mechanized poultry that is efficient. And rewarding.

 Value Proposition Poultry Production for wealth creation.

 Critical Success factors of the business.

A. Finance: Fund must be available as when needed according to plan to avoid creating stress factors
which would cost so much in revenue loss

B. Expertise: The poultry industry is knowledge based home employment of expertise is imperative.
Consultancy is paramount. Training and retraining of staff is sacrosanct no matter how small the level and
acquisition of knowledge of modern trend is a factor to growth.

C. Housing: Proper ventilation and spacing is a critical success factor. Position your house to give the bird’s

4
maximum ventilation and reduce heat.

D. Biosecurity: Disease entrance and spread are as a result of any form of breach in biosecurity. Foot bath,
car bath, prohibition of unauthorized persons etc.

E. Water: Watering and water source is of great importance. Foul water source or water getting
contaminated in poultry house signifies that the farm will fail. Water should be managed to ensure that
clear and clean water is available for bird ad libitum.

F. Nutrient: Most farm fail because they wanted to reduce cost of feed by compounding farms should only
venture into self-compounding on ground with available experiment. All nutrients must be readily available
in the market to prevent malnutrition.

G. Sales: Egg produced must be sold. Proper marketing with vigorous advertisement will ensure the
product is made available to the target market.

H. Management: Pilfering shrinkages, indulgence, misappropriation are few of the several epidemic that
constantly plaque poultry in South Africa. Workers steal eggs, birds, feed, money and even drugs if they
are not properly monitored. Sales agents and drivers could sell at different prices and report differently.
Effective management of this ends are critical factor.

I. Administration: At full capacity, Management is separated from administration, when the owner is not
directly involved in day to day management. Absentee farming is hazardous. Someone with stake in the
venture should give quality time to it to survive.

PROJECTED REVENUE

The projected revenue from the project is mentioned in the summary. The revenue projection for the first
year in lay is in the figure of to R1.5million from the sales of eggs and spent layers.

CASH FLOW PROJECTION

5
The projected cash flow for the Farm could be presented on request. Positive net cash balances are realized
at the end of second laying year. From the projection, the farm shows profitability.

PROJECTED PROFIT AND LOSS

There is no reasonable profit visible in the first year of the project due to huge investment cost but
subsequent recorded reasonable profits.

OBJECTIVES

Overall Goal

To increase the sustainability of Mayanasagwadi Agricultural Primary Co-Operative Limited to

Specific Objectives

1. To expand the business, raise and sell chickens and eggs (poultry products) and use its profits to help
support the activities of Mayanasagwadi Agricultural Primary Co-Operative Limited.
2. To improve the economic welfare of residents of Giyani and the Youths employing them to run and

support the “poultry farming project”.

3. To train the Youths and those individuals who have no opportunities to continue for secondary

education in so that they may successfully support their needs.

ACTIVITIES

1. Procure materials for constructing a permanent poultry house with favorable conditions for raising

chickens and eggs

6
2. Contract builders to build a structure (poultry house) for raising chickens and eggs

3. Contract the services needed for the installation of electricity

4. Contract the services needed to install a water system

5. Procure 500 chicks and the necessary food and supplies needed to support them

6. Provide veterinary services to layer birds and to support the needs of the project

7. Train the Youth on poultry farming

8. Monitor and evaluate the activities of the poultry farm and its overall impact to its target

group and as an organization, reviewing the management of the project and the sale of

poultry products.

Justification of the poultry venture:

The poultry business is a three-fold strategy, in that it seeks to create a viable income generation, giving
it an alternate way to support its daily activities and to improve the welfare of the youth. Once
Mayanasagwadi Agricultural Primary Co-Operative Limited is funded, there will be an increase in
produce of poultry products for sale hence meeting the market demand of eggs. Second, the project
seeks to create employment opportunities to some of the youth so that they cater for themselves and
to some extent their dependents. With respect to multiplier effect, the project will be a model for future
income generation projects within the community and in other localities

7
Expected Results

1. In the first year, the project will have 600 laying hens and broilers that will produce eggs for sale and
meat respectively.

2. At the end of the first year, the project will earn 168,000 from the sale of eggs to be used to assist in
the costs of sustaining the business

3. At the end of each hen’s egg-producing life, each will be put on the market. Profits realized from this
will be reinvested into the project, as a part of ensuring its sustainability and assisting organization in
running of it’s the daily activities.

4. The expansion of the poultry farming business will create employment for at least 10 youth who are
currently not employed in meaningful activities. This employment will give them an alternative way to
generate income, decreasing their dependency.

5. It will also be a model for future income generation projects within the community.

MANAGEMENT AND IMPLEMENTATION OF THE POULTRY FARMING BUSINESS

MAYANASAGWADI AGRICULTURAL PRIMARY CO-OPERATIVE LIMITED:

The organization has the capacity to run the poultry business effectively. In the first place, it has some

experience in poultry keeping, and it can collaborate with the district agricultural officer to conduct more

training to its staff so that they gain more skills and knowledge on how to rear chickens on a large scale.

The organization has areas which can be located for poultry keeping and where it will plant maize for the

chickens. As well, there is a greenhouse which will also be of great assistance to the business.

8
Implementation

The poultry business expansion will be executed by the organization. However, it will set up a separate

individuals who will be responsible for the day-to-day coordination and implementation of the activities.

It will also be responsible for planning, supervising, monitoring and reviewing

all activities. This will enhance the opportunities for the realization of the broad goals and objectives of

the poultry business.

Monitoring and evaluation

General Monitoring and evaluation will be an ongoing activity each and every day. Monitoring will be

routinely done through meetings monthly reports, check lists, and support supervision visits. These

reports shall indicate the constraints and challenges in the implementations and necessary adjustments

that had been taken. Progress evaluation will be done through use of monthly quarterly reports and work

plans indicating planned and accomplished activities, functional accountability for project resources

including equipment, facilities, assets and activities. Progress monitoring and evaluation will help

Mayanasagwadi Agricultural Primary Co-Operative Limited to assess the extent to which implementation

is meeting the set objectives

9
Financial Management

Finances accruing to this poultry business will be entered into the proper books of accounts when

received. A special Account in the name of the business will be opened to cater for only project funds. To

ensure effective control, management and monitoring of funds, no single signatory will be allowed to

access business funds, and the signatories of this account will be three. Under the consent of the three

and approval of the committee funds will be withdrawn from the bank and utilized for the intended

purpose.

MARKET ANALYSIS

Mayanasagwadi Agricultural Primary Co-Operative Limited rears quality poultry that are true to standards
and at a reasonable price.

The marketing objectives are to help increase the number of breeds raised by one breed per year

and maintain a breeding flock of 250 of each breed at all times. Breeds to be focuses on first:

 Kenbro
 Dorep

10
Marketing Strategies

To be successful in their marketing objectives, Mayanasagwadi Agricultural Primary Co-Operative

1. Target Market Strategy: Mayanasagwadi Agricultural Primary Co-Operative Limited will target
residents of Giyani, Kahomu Village and those working in the street take away food sector to allow
those who may be interested in the product the chance to buy them

2. Positioning Strategy: Mayanasagwadi Agricultural Primary Co-Operative Limited will position its
product in high traffic areas of the sale area, as well as on high traffic poultry sites via sponsored ads.

3. Product Strategy: Mayanasagwadi Agricultural Primary Co-Operative Limited will begin with two
different breeds and will focus on those for the first year. The breeds are Kenbro and Dorep.

4. Pricing Strategy: It is a primary focus of Mayanasagwadi Agricultural Primary Co-Operative Limited to

5. Supply Chain Strategy: Mayanasagwadi Agricultural Primary Co-Operative Limited will be the sole
vendor of their direct product.

Distribution

In order to properly place the product, Mayanasagwadi Agricultural Primary Co-Operative Limited will
need to continue to expound on the current consumer relations within the poultry sector in Giyani.
Distribution will take place face-to-face.

11
Profile of Competitors

Mayanasagwadi Agricultural Primary Co-Operative Limited will be in indirect competition with ever
other breeder of quality poultry within Giyani. Our direct competition will be all other breeders who are
raising the same breeds as Mayanasagwadi Agricultural Primary Co-Operative Limited. With the focus
on kaHomu and other areas within our location and individuals working in the street take away food
sector, there will be a competitive advantage and an ability to meet the demands of poultry products
especially in the retail and hotels industry in Giyani.

SWOT Analysis

The SWOT analysis allows Mayanasagwadi Agricultural Primary Co-Operative Limited to consider their
strengths, weaknesses, opportunities, and threats in respect to their internal and external environments.

Strengths

These are strengths identified by Mayanasagwadi Agricultural Primary Co-Operative Limited:

 Breeder animals (Kenbro and Dorep) from top breeders across the country
 Maintaining lower than average prices

 Focusing on breeds that are not common

 Relatively low energy costs

12
Weaknesses

These are the weaknesses identified by Mayanasagwadi Agricultural Primary Co-Operative Limited:

 Competition with other poultry farmers with more recognized names

 Limited supply

Opportunities

 Expansion of cut-up market

 Investment in new technologies to increase productivity (e.g. incubators, added value

 Consumer education
 Equity financing available

Threats

 Predators
 Failure of marketing attempts
 Other local farmers raising the same breed

13
 Organization Chart

Mayanasagwadi Co-operative

V.Nkuna Director Maswanganyi M.P Hlungwani J. N Mabunda G.A HR

Makamu L.N Supervisor

Employees

Conclusion

Mayanasagwadi Agricultural Primary Co-Operative Limited’s farm shall be a success. Poultry Farming is a
highly developed industry. Its efficacy and productivity is a product of bringing together of all the available
industrial facilities, this can never be provided enough by just one individual or company, hence
Mayanasagwadi Agricultural Primary Co-Operative Limited’s plan to collaborate with investors and
experts. The industry works effectively as a network with different specialization, bringing in diverse inputs.
Also, to avoid overcrowding of ideas and thinning of the limited resources, focus will be on egg
production for a long time under the supervision of an experienced consulting firm. Success is granted,
God being by our side. Lagos is a large market and strategically located to expand and serve the rest of
the nation and beyond.

14
1