HEWLETT-PACKARD

ALI KAUNDA
BROILER PRODUCTION BUSINESS PLAN
By: Kafue Road Bride Farmers
30/1/2020
Contents
No table of contents entries found. Table of Contents

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EXECUTIVE SUMMARY

1.0 Abbreviations and Acronyms

2.0 BUSINESS IDEA

3.0 PROJECT DESCRIPTION 4.0 MARKETING STRATEGY

4.1 Competition

4.2 Target markets

4.3 Presentation

4.4 SWOT Analysis

5.0 OPERATIONAL PLAN.

5.1 Production process

5.2 Processing and Grading

5.3 Transportation

5.4 Pricing and labeling

5.5 Marketing

6.0 ORGANIZATIONAL PLAN

6.1 Internal organizational structure

6.2 Partner strategy

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EXECUTIVE SUMMARY
The proposed Ali broiler project aims to produce 2000 broilers per cycle that will be graded according to
weight (1.2kg – 2kg) and according customers’ preferences; packaged, labeled, priced and sold to the
potential buyers in Lusaka. These broilers will either be sold whole or as cutlets and would be supplied to
2 hotels, 2 restaurants, individual bulk buyers and 3 supermarkets. Ali Broiler project has 5 farmers who
are managing the from seed to table innovation project and these will be working in groups of 5 and each
of the 5 groups of 1 farmer is expected to produce 500 broilers per cycle.
The initial investment for the project is estimated to be US$........, which includes US$......... in
construction, US$.......... in working capital and US$........ in equipment.

The average annual net profit is expected to be USD ….... and the average net profit margin is expected to
be ……... Ali broiler project has to produce 838 broilers to break even.

A worst case scenario is taken by assuming that the price of broiler chicken is decreased from US$.......kg
to US$........... the business will have average profitability of US$.........annually .

The best case scenario is taken by assuming that the price of broiler chicken is increased from US$.......to
US$........., the business will have an average profitability of US$ …… annually.

In order to achieve satisfactory results and minimize labour costs, Ali broiler project will be managed by
the producers themselves with the assistance from Kafue Road Bridges farmers team and technical
partners.

BUSINESS IDEA

The Most Promising Option (MoPO) for the Ali broiler project is broiler production and will entail
production, processing and marketing broilers that have been dressed, graded according to weight ( 1.2kg
– 2kg), packaged, labeled and sold in large quantities (20kg+) as chicken cuts or whole to supermarkets,
hotels, and restaurants in Lusaka and Zambia at large. Broiler production has not been practiced before,
meaning that broiler production will start from a zero base.

The innovation in the broiler production will be organised as follows:

Processing and Grading: The dressed broilers will be weighed and graded according to the weights and
standards that meet the market requirements. The market analysis results showed that hotels and
restaurants preferred whole broilers weighing between 1.2 kg and 1.5kg while the supermarkets preferred
those weighing 1.2kg up to 2kg. The supermarkets also registered interests in broiler mixed cutlets and
specific cuts of 250g, 500g, 750g, 1kg, 1.5kg and 2kg.

Packaging: The whole broilers will be packed in plastic bags while the pieces will be packed in packages
half boxes with the top sealed with cling paper. All the products will be labeled with the brand name,
weight, and price and expiry date.

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Marketing: The broiler producers will have to produce a quality that is preferred by their potential buyers
and that is above usual market standards. There will be need for periodic market research to maintain
customer conformity and determine current preferences. The producers will also go out to supermarkets
and advertise their special broiler through tasting and giving free samples. Pamphlets will also be
distributed at strategic points.

Training and capacity building: The producers will receive training mainly through Kafue Road Bridge
Farmers and from the technical partners on the best production methods. Capacity building will be an
ongoing activity that will be based on baseline surveys, monitoring and evaluation results by experts and
self/peer evaluation among producers themselves.

PROJECT DESCRIPTION

The project aims to produce 2000 quality broiler chickens per cycle that meet the customers’ expected
standards. The fowl run space will be leased from Lusaka City Council. Farmers will construct the fowl
run to house 2000 broiler chickens in batches of 500 per group of 5 producers, 1 administration office, 2
brooders and 1 slaughter room at gum-plantation site. Clean water supply. The broiler producers likewise
will be organized into four groups of four to manage 500 chickens in each compartment. The project has
been designed to ensure reasonable net profit for the producers in the 18 months phase.

4.0 MARKETING STRATEGY

Due to low production and input shortages of chicks and feeds, people in Luska are now consuming some
broiler chickens that are produced in neighbouring countries like South Africa and Botswana. The
findings from the market analysis revealed that most customers do not like the taste of these imported
chickens. They were described as fatty and tasteless. This finding underscores a need to augment efforts
of the local broiler producers and to increase the supplies of home grown broilers. In addition, Ali
producers have to take an additional step and produce a quality broiler that their potential buyers want.

4.1 Competition

The main local competitors for this project are Zamchick, Country Choice Chicken and other small scale
producers. There are also chicken brands important from regional countries which are slightly cheaper but
customers do not favour their quality. These competitors are capable of cutting down their price so as to
attract the customers. They are also capable of providing good packaging for their products.

4.2 Target markets

The project will target Supermarkets, Hotels, restaurants and individual bulk buyers. However the project
is envisaged to expand and provide supplies to Boarding schools, prisons. This entails frequent markets
analysis in order to determine production quantities and qualities and ensure consistence, reliability and
trust on the product

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4.3 Presentation

Ali broiler project will offer quality broilers to its customers in terms of taste, size presentation and price.
In addition to whole chickens will produce packed chicken cuts of 250g, 500g, 750g and 1kg and 2kg so
as to accommodate all its customers.

4.4 SWOT Analysis

The table below shows the Strengths, Weaknesses, Opportunities and Treats of the intended broiler
production

Table 2: SWOT Analysis

Strength Weakness
-One of the advantages offered by Ali broiler -There is no electricity at the site and this will make
project is that it will produce chickens of high some operations difficult.
quality and it will also provide continuous
supply of broilers to its customers. - Project members live very far from the project
site and this makes some routine operations
-Bedding is readily available from the site difficult.

-Integration of different projects is possible for

- Labour is readily available and will be provided

Opportunities Threats
- Ali broiler project will create employment for
many producers as they will get income from the Construction costs
retained earnings High initial investment is require for the
construction of the fowl run, brooders, store room,
- When the product is advertised well the market slaughter house and offices
share will increase hence the profits will also
increase. Competition
There are many competitors for this project, and
- There is room to expand production to road this will require the Ali broiler producers to
runners ,layers and rabbit production produce broilers of high quality and introduce
innovations that are have not been introduced by
- Broilers will be produced organically as most their competitors.
consumers prefer organic products.
Predators
- Presence of BCC game rangers will provide some The project site is very far from the producers’
security at the project site. homesteads and there are chances that predators
may be a problem

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5.0 OPERATIONAL PLAN

Table 5.1.1 shows the calendar for broiler production. Each cycle should be 6 or 8 weeks depending on
the weight of the chickens that is on order. The average number of production cycles is estimated to be
5.5 per annum taking into account the disinfection period of 10 days before putting new chicks. The
management and coordination of the plan will be done by the producers through the management
committee and assistance of the Kafue Road Bridge Famers team Labour will be provided by the
producers themselves

5.1 Production process

The broiler producers will procure their one day old chicks and feeds from Hybrid or Ross chicks and
Lusaka one-day-old chicks. The other inputs will be procured from hardware shops, supermarkets and
pharmacies. Day old chicks would be managed in the brooders for 2-3 weeks before they are transferred
to the fowl run. During the brooding period chicks should be properly fed and given vaccinations in order
to keep them in good health. The cycle covers a period of approximately 56 days. After the cycle is
complete the fowl run is cleaned and disinfected for 10 days. Proper types of feeds and proper feeding
practices have to be adhered to in order to ensure expected maturation at the expected time. Monitoring
the chicks for diseases and growth will be an on going process.

5.2 Processing and Grading

After maturation the chickens will be transferred to the slaughter room where they will be dressed using
the plucking machine .They will then be graded according customers’ preferred weights and stored in the
freezer till deliveries to the customers. Those weighing 1.2kg -1.5kg would be supplied to the hotels and
restaurants while those which weigh 1.2 up to 2kg will be delivered to supermarkets as they require an
assortment of weights for customers to choose from. The chicken cuts will be supplied to the
supermarkets and individual customers.

5.3 Transportation

Some customers will collect their chickens while others may request deliveries. Deliveries at a cost will
only be done for customers without transport who order mainly 20 broilers or more. Initially the
producers will use hired transport until such a time when they have purchased their own delivery truck.
All the products will be delivered on time so as to satisfy the customers.

5.4 Pricing and labeling

Pricing will be at US$...... /kg and labeling will indicate the organizational logo and contact details,
weight, best before date and the price of the pack.

5.5 Marketing

The producers will promote their products through use of leaflets and supermarket displays. The
marketing department will take orders before the cycle starts through individual personal phones and from
those coming to the site. Eventually there will be a need to open an outlet shop at the site where they will
be selling dressed and live chickens as well as chicken offals.

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Management Committee

Management committee will comprise 4 chairpersons from each of the 4 groups. The management
committee will appoint a chairperson, vice chairperson, secretary and treasurer. This committee will be
involved in the coordination and management as well as making the overall decisions. It will ensure
implementation of the producers’ objectives and activities

Committees in groups of 25

Each group producers will also have chairperson who is a member of the management committee, vice
chair person, secretary, treasurer. This committee will be responsible for coordinating and ensuring
implementation of the activities for the project in that group.

Disciplinary committee

The disciplinary and security committee looks and resolves issues of discipline and security within the
broiler production project. It will consist of four members drawn from each group of 4 members .This
committee is involved in keeping of peace and law within the organization and good public relations.

Production committee

It will consist of four members drawn from each group of members. The group will support and promote
production by ensuring construction of fowl runs, brooders, store rooms and procurements of inputs. It
will also be involved in keeping all the production records and maintain accurate records of chicks that
have been purchased; mortality rate, growth rate, breed, and inventory of stock. It will also be responsible
for slaughtering of broilers and proper disposal of bi products according to health requirements.

Processing committee

This committee will consist of four members drawn from each group of members .These will be
involved in all the processing activities of grading, pricing, packaging, and labeling of broilers. Broilers
will be graded according to weights and customers’ preferences. Pricing will be at US$..... /kg and
labeling will indicate the organizational logo and contact details, weight, best before date and the price of
the pack.

Marketing committee

It will consist of 4 members drawn from each group of members. This committee will be involved in
advertising, tenders, contracts supply and delivery of broilers.

Finance committee

The committee will consist of 4 members drawn from each group of members. It will be involved in
costing, budgeting, procurement of inputs and fund raising. It will also be responsible for keeping of
financial records, allocation of funds, decision making in finance and group saving schemes. This group
will be responsible for supervising and monitoring financial records of the 4 groups; it will be answerable
to the management committee and is subject to internal or external auditing at regular intervals.

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6.2 Partner strategy

The following are some of the key strategic partners for the successful implantation of the broiler
innovation project;

Lusaka City Council will be useful in facilitating the acquisition of land to put up the fowl run structures,
permits, leases and bylaws in order to legalize the existence of the project

Other broiler producers

These are broiler producers in Lusaka who are already into broiler production who will assist in providing
a look and learn environment in their project sites. Ali broiler producers will be expected to visit these
other broiler producers’ projects’ sites and observe each and every step of the broiler production cycle.

6.0 ECONOMIC IMPACT EVALUATION

Thuthukani broiler project is envisaged to empower the producers with expert knowledge and skills in the
practical production, processing and marketing of quality broilers. In turn their economic, social, health
and nutritional status will improve.