PROGRAM: RURAL DEVELOPMENT AND PLANNING

TITLE: RURAL DEVELOPMENT AND ASSIGNMENT ON THE CHICKEN

FARMING PROJECT PROPOSAL

SUBMITED BY: DINKNESH WONDAFERAW PGW/62787/14

SUBMITED TO: Yishak Gecho (PhD, Asso. Prof)

october 25, 2022

WOLAITA SODO UNIVERSITY, ETHIOPIA

Table of Content

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 s

1. BACKGROUND AND JUSTIFICATION OF PROJECT PROPOSAL...................1

1.1 Rationale of the project...............................................................................................3
2 Project objectives...........................................................................................................3
2.1 General Objectives of the project............................................................................3

 Getting the average estimated sales per year.............................................................3

 Maximize chicken farming supply.............................................................................3
2.2 Specific Project objectives......................................................................................3

3 Project activities.............................................................................................................4
3.2 Vision and Mission Statement............................................................................4

4. Project outcome, output and indicators.........................................................................4

5. Methods and procedure.................................................................................................5
5.1 SWOTS Analysis....................................................................................................5

5.1 Description of the project area................................................................................7

5.2 Project description and selection procedure of project site......................................8

5.3 Problems intiating project work..............................................................................9

5.4 Scope of the project.................................................................................................9

5.5. Project implementation strategies...........................................................................9

5.6 Roles and responsibilities of the project stakeholders...........................................10

5.7 Target beneficiaries...............................................................................................11

5.8. Reporting schedule................................................................................................ 12

6. Sustainability.............................................................................................................. 13
7. Monitoring and Evaluation........................................................................................13
7.1 Monitoring............................................................................................................ 13

7.3 Evaluation............................................................................................................. 13

8. Project Budget, activities and time plan......................................................................14

8.1. Project activities and budget....................................................................................18
8.2 Time PIan for implemetaion.....................................................................................18
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 1. BACKGROUND AND JUSTIFICATION OF PROJECT
PROPOSAL

The chicken is the some sub-sector of the Ethiopia agricultural sector. It represented
6.6% of the total gross value of 2020 agricultural production and is the largest animal
production segment. The Ethiopia agricultural has an estimated annual value of between
0.7 million to 0.8 million with fresh produce making up the majority (70 percent) of
organic food sales. It is difficult to determine the local retail demand for organic food as
there is no readily available time series data on retail sales.

Being the chicken entrepreneur has always been a life-long dream for me. And in order
to create a business, it is important that one gets a good business plan which led to the
idea of this business plan as my thesis. A business plan is a document or a guide which
outlines a proposed business objective. My choice of business is chicken farming. It is
right to ask the question why I have chosen chicken farming. To under-stand this, it is
significant to know a few backgrounds on the choice of location for the poultry farm:
Ethiopia. Being the most populous country in Africa, with a population of over 120
million people, the demand for poultry products outweighs the supply which in turn
creates a profitable market for potential entrepreneur. Besides, with recent actions by the
Ethiopia government to promote local production, what better business can be done than
chicken farming. With this, I have come to realize that this could be a business
opportunity. For the sake of clarity, poultry farming is the rearing of domesticated as
chicken for meat or eggs. This livestock provides a high, cheap source of animal protein
and Ethiopia consume a high percentage of this source of protein.

The chicken farming enterprise offers high value for users and customers. The product
of the business will be available for sale at home and also sold to wholesalers and
retailers who sells in the other market. From the beginning business enterprise the
market for salers are not limited in local market. This enterprise is aiming at serving the
society. It is forecasted to fulfill the needs of society who have a great desire on using
chicken. Our beginning capital is about 122,900 Birr for purchasing fixed asset and for
the operation of different work of our business need 330472 Birr with total Birr of
453372. From this amount we get 330472 Birr from Omo Microfinance of Ethiopia

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through loan and with its 8% rate of loan repayable over one year. As owners our
commitment is to take personal accountability for all financial debt.

1. Background and Justification of the PROJECT PROPOSAL

 Name of the company

The name of business service will be Gununo town Kebele 01 on the chicken farming
enterprise. As we observed in this area there are few competitor which supply both
qualitative and quantitative chicken farming

 Company History

The name of this business is chicken farming enterprise which will start as a business in
gununo town kebele 01. As we observed in this area there are few competitor which
supply both qualitative and quantitative chicken farming products. Also in this area we
observed that most of the communities’ population of this kebele is students and the
other includes those who are busy on working day and night. So such types of
individuals highly need the product of chicken farming.

 Business profile

The small scale enterprise on chicken farming. This business is chicken farming
enterprise which will start as a business in Wolaita Zone gununo town kebele 01.

Mission.
 Our business enterprise mission is utilizing available resources and providing
with due service adopting to the dynamic environment throughout the operation,
providing afford able living standard to its workers demands and supplying
chicken farming.
Vision
 Our vision is not only having a profit but also satisfying our customers equally as
much as possible.
 Considering employees welfare, giving them training, treat them equally and
rewarding employee that works hardly as the part of our success.

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1.1 Rationale of the project

Chicken farming is one of the most lucrative agriculture businesses in Ethiopia.

Thousands of poultry products are consumed everyday yet, the demand remains
unsatisfiable. Poultry farming is the second most considered sector which is under
animal husbandry in agricultural field. It is easy to run and requires less expenses,
opportunities surrounding poultry farming are exponential in highly profitable ways. We
are in the commercial poultry farm and egg production line of business because we want
to focus on the vast opportunities available in the agriculture industry, to contribute our
quota in growing the Ethiopia economy, in national food production, and also to export
chicken and eggs from the country to other countries and above all, to make profit.
Dicha chicken Farm is well positioned to become one of the leading commercial poultry
farms and egg production business in Ethiopia, which is why we have been able to
source for the best hands and machines to run the company with. We have put process
and strategies in place that will help us employ best practices when it comes to
commercial chicken farming. At the Dicha Poultry Farms, our customer’s best interest
will always come first, and everything we do will be guided by our values and
professional ethics. We will ensure that we hold ourselves accountable to the highest
standards by meeting our customers’ needs precisely and completely. We will cultivate a
working environment that provides a human, sustainable approach to earning a living,
and living in our world, for our partners, employees and for our customers.

2 Project objectives

2.1 General Objectives of the project

 Getting the average estimated sales per year.

 Maximize chicken farming supply.

2.2 Specific Project objectives

 Expanding our products to neighbor countries.

 To create employment opportunity to the surrounding community and
others.
 To generate maximum profit by assuming any risk.

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3 Project activities

3.2 Vision and Mission Statement

Our Vision is to become one of the leading commercial poultry farm and egg production
brands not just in Ethiopia but also on the global stage. Our mission is to see our
chickens and eggs sell in all areas of Ethiopia and other countries of the world.

4. Project outcome, output and indicators

Dicha chicken Farm is a privately owned and managed commercial poultry farms and
egg production business that intend starting small, but hope to grow big in order to
compete favorably with leading commercial poultry farms and egg production
companies in the agricultural sector. At the Dicha chicken Farm, we will ensure that we
hire people that are qualified, hardworking, creating and are ready to work to help us
build a prosperous business that will benefit all the stake holders (the owners, workforce,
and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior
management staff and it will be based on their performance for a period of five years or
more as agreed by the board of trustees of the company. In view of the above, we have
decided to hire qualified and competent hands to occupy the following positions;

 Chief Operating Officer

 General Farm Manager
 Human Resources and Admin Manager
 Accountant / Cashier
 Sales and Marketing Executive
 Field Employees
 Front Desk Officer

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5. Methods and procedure

5.1 SWOTS Analysis

Strength
 Agricultural policy
 Population growth
 Low cost of machinery importation
 Profitability
 Low taxes
Weakness
 High start-up capital
 Disease outbreak
 Mortality rate
 Market price
 High cost of feed
 Innovation
OPPORTUNITY
 Importance of agricultural sector
 Low labour cost
 Availability of land
 Favorable climatic condition
Threat
 Existing market
 High cost of energy
 Corruption
 Health/Disease outbreak
 Poor infrastructure: road, water
Component of a business plan
At a minimum, business plan should contain the following components: an
executive summary, description of the business, description of the product or
service, a market research, the marketing strategy, operations, management
organization, and a financial data.

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An executive summary is a short summary from business plan. It is the first
component in the business plan which contains the comprehensive overview of
the whole business. This must be written carefully because the investors can
make a quick decision on the business by reading this only. The executive
summary should contain market analysis, business opportunities and key
strategies for success. This is the most important part of the business plan.

Our Target Market

The target market of those who are the end consumer of commercial poultry farm
produce and also those who benefits from the business value chain of the poultry
farming and egg production industry is all encompassing. Every household
consumes produce from commercial poultry farms be it chicken or egg. Also,
almost all hotels and fast restaurants sell chicken and eggs. In essence a
commercial poultry farmer should be able to sell his or her chicken and eggs to
as many people as possible.
Below is a list of the people and business that we will market our chickens and
eggs to;
 Households
 Individuals
 Hotels
 Restaurants
 Fast food eateries
 Agriculture merchants
Competitive Advantage
Dicha chicken farm is fully aware that there are competitions when it comes to
selling commercial farm produce all over the world, which is why we decided to
carry out thorough market research so as to know how to take advantage of the
available market Ethiopia and in other parts of the world. We have been able to
highlight some factors that will give us competitive advantage in the
marketplace; some of the factors are effective and reliable chicken farming and
egg production processes that can help us sell our produce at competitive prices,
good network and excellent relationship management.

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 Another competitive advantage that we are bringing to the industry is the fact
that we have healthy relationships with loads of major players (agriculture
merchants) in the industry, both suppliers of poultry feeds and medications and
buyers of chickens and eggs.

5.1 Description of the project area

The project is about keeping layers that will lay eggs for sale. Their plan is to keep 250
layers as their starting point. They may add the number depending on the availability of
outcome and quality of the chicks. They will purchase chicks from quality productive
age of three months old. So they will keep the chicks for three months before they start
laying eggs at the age of six months. They have decided to purchase chicks from quality
productive. The chicks will be kept in door by the deep litter system. The number of
chicks is assumed to decline at 0.02 per cent at each four months due to death.

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5.2 Project description and selection procedure of project site

Feeding program

At the age of 4-5 months chickens with be given 120 grams of feed per day (growers
mash) and from the age of six months onwards the chickens with be given 130 grams of
feed per day 9(layers mash). During the whole period of two years the chicken will
consume 367.5 bags of feed and the feed will cost the project sh. 4,042,500.00 at a price
of sh. 11,000.00 per bag of 50 kg. For more information see table below.

Chicken Formula No. of bags Price per Total

Feed bag
Program.

Age/months

4-5 120xl20smsx60davs 50,000grams 36 11,000/= 396,000/=

6-9 245x130amsxl20davs 50,000grams 76.44 11,000/= 840,840/=

10-13 240xl30amsxl20davs 50,000grams 74.88 11,000/= 823,680/=

14-17 235xl30smsxl20davs 50,000grams 73.32 11,000/= 806,520/=

18-21 230x130gmsxl2davs 50,000grams 71.76 11,000/= 789,360/=

22-23 225xl30amsx60davs 50,000grams 35.1 11,000/= 386,100/=

Total 367.5 4,042,500/=

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5.3 Problems intiating project work

The project as a living entity will face some constraints. Some of the identified constraints are as follows:

 Lack of knowledge and skills of poultry keeping to members of the group

 Risk of theft of eggs and chickens
 Risk of poultry diseases such as fowl typhoid, coccidios, new castle, fowl pox.
 Strategies to weaken the constraints and hence to enable the project to success.
 Lack of knowledge and skills on poultry keeping
 They will invite an expert in poultry issues before the project takes off.
 They will make sure that they have a dog.
 The poultry shed will be reinforced with iron bars
 There will be a roaster for night security. Each male member of the group will be
obliged to be a guard once per week. Risk of poultry diseases
 The poultry shed will always remain clean without contaminated litter.

5.4 Scope of the project

 Getting the average estimated sales per year.

 Maximize chicken farming supply.
 Expanding our products to neighbor countries.
 To create employment opportunity to the surrounding community and others.
 To generate maximum profit by assuming any risk.

5.5. Project implementation strategies

We intend growing our business which is why we have perfected plans to build our brand via every available
means. We know that it is important to create strategies that will help us boost our brand awareness and to
create a corporate identity for our commercial chicken farm and egg production business. Below are the
platforms we will leverage on to boost our commercial poultry farm and production brand and to promote and
advertise our business;

 Place adverts on community based newspapers, radio stations and TV stations.

 Encourage the use of word of mouth publicity from our loyal customers.
 Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter,
Google and other platforms to promote our business.
 Ensure that our we position our banners and billboards in good positions all around Ethiopia .
 Distribute our fliers and handbills in target areas in and around our neighborhood.

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  Contact corporate organizations, households, landlord associations and schools by calling them up and
informing them of Dicha chicken Farm and the poultry produce we sell.
 Brand all our official cars and trucks and ensure that all our staff members and management staff wears
our branded shirt or cap at regular intervals.
 A team of four members from within the group is empowered to oversee the project on daily basis.
 The team reports to the executive committee on problems that arise.

 The executive committee will meet weekly to discuss the progress of the project and take steps to
remedy the situation.
 All members of the group will meet monthly to discuss the progress report from the executive
committee. There will be annual evaluation and final evaluation that will take place at the end of the
life span of the project, which is two years. All members of the group with an assistance of an expert
will do annual evaluation.

5.6 Roles and responsibilities of the project stakeholders

We have discovered that the reason why some commercial chicken farms and egg production companies hardly
make good profits is their inability to sell off their chickens and eggs as at when due. Our sales and marketing
team will be recruited based on their vast experience in the poultry farming and egg production industry and
they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business
goal of Dicha chicken farm. We have perfected our sale and marketing strategies first by networking with
agriculture merchants and businesses that rely on daily supply of chicken and eggs from the chicken farms and
egg production industry that are likely to become our customers. In summary, the Dicha chicken Farms, will
adopt the following strategies in marketing our commercial farm produce; Introduce our business by sending
introductory letters alongside our brochure to stake holders in the agriculture industry, households, hotels and
restaurants and agriculture produce merchants.

 Advertise our business in agriculture and food related magazines and websites.
 List our commercial chicken farms and egg production business on advertisements.
 Attend related agriculture and food expos, seminars, and business fairs.
 Leverage on the internet to promote our business.
 Engage in direct marketing.

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Our Pricing Strategy

Some of the factors that will help us sell our farm produce at the right price that will guarantee that we make
profits is dependent on our strategy, while some of the factors are beyond our control. For example, if the
climatic condition is unfavorable and if there is natural disaster in the location where we have our commercial
poultry farm, then it will directly affect the prices of our chicken and eggs.

Also, in order for us to get the right pricing for our chicken and eggs, we ensure that we choose a good location
for commercial chicken farm, choose a good breed that will guarantee bountiful harvest, cut the cost of running
our poultry farm to the barest minimum and of try as much as possible to attract buyers to our poultry farm as
against taking our eggs and chickens to the market to search for buyers; with this, we would have successfully
eliminate the cost of transporting the goods to the market.

Payment Options

The payment policy adopted by Dicha Poultry Farm, is all inclusive because we are quite aware that different
customers prefer different payment options as it suits them.Here are the payment options that Noble Ernest
Poultry Farms, LLC will make available to her clients;

 Payment via bank transfer

 Payment with cash
 Payment via online bank transfer
 Payment via check
 Payment via bank draft

5.7 Target beneficiaries

Poultry and in particular chickens is commonly kept by 90–95% of the households in the rural areas. The
number usually ranges from 2 to 5 hens per family unit. The purpose of raising chickens is to provide protein
for the family and sale for cash income. Chickens raising is very popular among rural people because of the
small investment and short time to income. However, chickens raising faces many problems and farmers rarely
get the benefit that they expect. The constraints of chicken production are diseases, feed and feeding and
husbandry practices. In fact, the experience from Bati district, Takeo Province in Cambodia showed that if
vaccination was applied against only two of the common diseases (Newcastle and Fowl cholera), farmers could
benefit from 60–70% of the total chickens hatched in comparison to 20–30% without interventions.

Chickens can provide a good source of income to the rural villagers, particularly the poorest families with
limited resources like land and capital. Women - and they constitute more than 50% of the total adult
population - have direct benefit from chicken raising as they are working mainly at home. According to
interviews with farmers at the Special Program for Food Security (SPFS) pilot sites, the income from chickens
enables them to buy most of the materials needed for children to go to school. At the same time, chickens also

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provide protein for the family and high value food at occasional festivities. Every year, much research is
conducted to find solutions to improve productivity in agriculture, but, in fact, those who are expected to be
assisted utilize very few research results. On the other hand, development institutions and agencies are trying to
find ways and means to assist those people in a sustainable manner by introducing technologies that are
adapted to the local conditions. In this regard, about 15 years ago, the concept of farmer field school was
developed and it has been used mainly in Integrated Pest Management (IPM). Today the concept of Farmer
Field School (FFS) can be used in most agricultural activities.

5.8. Reporting schedule

This report help s to identify a profitable project for investing or diversifying into by throwing light to crucial
are a s like industry size, market potential of the product and reasons for investing in the product

This report provides vital information on the product like it’s characteristics and segmentation

Thisreporthelpsyoumarketandplacetheproductcorrectlybyidentifyingthetargetcustomergroupoftheproduct

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6. Sustainability

Taking the following steps will ensure the sustainability of the project:

Each member of the group will continue paying monthly contributions of 1,000. The money will be used to pay
wages for the poultry attendant.

The group will establish a garden to fully utilize the chicken manure. Income from the garden will be used to
buy chicken feed.

The spirit of togetherness will be further fostered. It is through this spirit that the group was formed. More
seminars on poultry management will take place so as to make all members of the group aware with poultry
risks and thus be in a position to avoid the risks. Also income from the project will ensure the sustainability of
the project because the income will be used to finance different project activities of the project especially
chicken feed.

7. Monitoring and Evaluation

7.1 Monitoring.

A team of four members from within the group is empowered to oversee the project on daily basis. The team
reports to the executive committee on problems that arise. The executive committee will meet weekly to
discuss the progress of the project and take steps to remedy the situation. All members of the group will meet
monthly to discuss the progress report from the executive committee

7.3 Evaluation

There will be annual evaluation and final evaluation that will take place at the end of the life span of the
project, which is two years. All members of the group with an assistance of an expert will do annual evaluation.
The final evaluation will be also participatory. AH members of the group will be involved. In addition some
members of village especially the vulnerable ones will participate.

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8. Project Budget, activities and time plan

Dicha chicken Farm, is in the poultry farm and egg production line of business for the purpose of maximizing
profits. Hence, we have decided to explore all the available opportunities within the industry to achieve our
corporate goals and objectives. Below are the sources we intend exploring to generate income for the Poultry
Farm;

 Raising, processing and marketing chickens on a commercial level

 Marketing our egg produce
 Hatching eggs
 Specialty eggs
 Marketing poultry feeds
Table 1

List of Equipment Description/ uses

Equipment

1 Generator This is us to supply electricity to the poultry house as

well as to keep the poultry house gadget running

2 Feeders They are device used to feed the birds, some of which
are made from plastic or meters.

3 Lighting Bulbs and rechargeable for light

gadgets

4 Drinker These are device use for holding water for the birds to
drink.

5 Waste bin This is used to trash waste in the poultry farm

6 Table/chair The table and chair are for sales representative and
customers

7 Shovel Will be used to clean up the poultry house

8 Nose max This will be use protect and clear the breath of staff
when cleaning the poultry house

9 Gloves Will be used to protect the staff while working in the

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 farm.

Required startup capital estimate

For a business to succeed, startup fund plays a huge role. Since the proposal is for a business based in
Ethiopia, the required capital will be estimated based on the Ethiopia currency. However, the euro
equivalent for the capital will be stated as wall based on the rate stated above.
8.1. Project activities and Budget

Required Startup Capital Estimate Items Amount

Pre-operating Expenses 115,000

Opening Stock 7,900.00

Total Operating Expenses -3months 330,472

Total Startup Capital Estimated 453,372

Source of Funds Sources of %

Funds

Bank loan 60%

Personal equity 40%

Total Funds 100%

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Pre-operating Activities Pre-Operating Activities Amount

Land acquisition 0

Land preparation/Building 7000

Electrical/Plumbing 1500

Purchase of equipment 3600

Preparing of brooding room 1000

Business registration/local gov tax 3000

Opening Qu Unit Cost 0

Stock ant
Stock/Ite ity
m

Vaccinati 10000 0
on

Cleaning 3 100 300

materials

Nose 3 200 600

mask

Total 300 900

Propose Products Descript Cost Propose

d Price ion price d
List S/N /details Selling
price

1 Broiler 1 Broiler 3000

2 Manure 1 Bag of 200

Manure

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Key Management Functions and responsibility
Team Position

Manager Managing, supervising jobs sorting birds, sales and marketing

Marketer Majorly Marketing the product and making delivery to customers

Labourers Feeding and cleaning of the poultry house change the water and
clean the drinkers

Staff Salary Name Monthly Annual

Schedule S/N Salary Salary

1 Manager 1 30,000 60,000

2 Marketer 30,000 60,000

3 Staff 1 20,000 40,000

Total 80,000 80000

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8.1. project activities and budget

Item No. of units Price per unit sh. Total cost (Tsh.)

Tree poles 25 300 7,500.00

Tree barks 112 300 33,600.00

Iron sheets 30 6,300 189,000.00

Nails 10kg 1,300 13,000.00

Roofing nails 4kg 1,800 14,400.00

Wire mash 2pieces 10,000 20,000.00

Sand I trip 16,000 16,000.00

Cement 4 bags 8,500 51,000.00

Roofing caps 4 pieces 2,500 10,000.00

Roofing timber 20 pieces 1,350 43,200.00

Doors 2 7,000 14,000.00

Iron rods 1 piece 20,000 20,000.00

Labour charge 25,000.00

Sub total 456,700.00

Chicks 250 3,000 750,000.00

Feeders/ drinkers 100,000.00

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8.2. Time Plan for Implementation
No Activities to be done Month

Sep Oct Nov Dec Jan

1. Proposal writing X

2. Project activities X

3. Project outcome, output and X

indicators analysis

4. Sustainability of project X
analysis

5. Project Monitoring and X X X X X

Evaluation

6. Project Budget, activities and X X X X X

time plan analysis

7. Data collection X

8. Data analysis & interpretation X X

9. Submission X

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