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Table of Contents
I. SUMMARY 2
II. PRODUCT DESCRIPTION & APPLICATION 2
III. MARKET STUDY AND PLANT CAPACITY 3
IV. MATERIALS AND INPUTS 6
IV. TECHNOLOGY AND ENGINEERING 8
V. HUMAN RESOURCE AND TRAINING REQUIREMENT 14
VII. FINANCIAL ANALYSIS 15
FINANCIAL ANALYSES SUPPORTING TABLES 20
This profile envisages the establishment of a plant for the production of poultry feed with a capacity of 3,500 tons per annum. Poultry feed is a kind of balanced livestock feed which aids the proper development of chicks and pullets and hence used for feeding the domesticated birds such as chickens, turkeys, ducks, geese, etc..
The country`s requirement of poultry feed is met through local production. The present (2012) demand for poultry feed is estimated at 25,749 tons. The demand for the products is projected to reach at 34,453 tons and 41,889 tons by the year 2018 and year 2022, respectively.
The principal raw materials required are oil cake, wheat bran, molasses, cereals, limestone, bone - meal (blood - meal), vitamins, minerals, and salt. All the raw materials are locally available, except vitamins which have to be imported.
The total investment cost of the project including working capital is estimated at Birr 9.81 million. From the total investment cost, the highest share (Birr 4.53 million or 46.19) is accounted by initial working capital followed by fixed investment cost (Birr 4.42 million or 45.09%) and pre-operation cost (Birr 855.60 thousand or 8.72%). From the total investment cost Birr 1.7 million or
17.33 % is required in foreign currency.
The project is financially viable with an internal rate of return (IRR) of 32.11% and a net present value (NPV) of Birr 12.22 million, discounted at 10%.
The project can create employment for 29 persons. The project will create backward linkage with the agricultural and agro-processing sectors and forward linkage with the livestock sector and also generates income for the Government in terms of tax revenue and payroll tax.
[b]II.PRODUCT DESCRIPTION & APPLICATION[/b]
Poultry feed is a kind of balanced livestock feed which aids the proper development of chicks and pullets and hence used for feeding the domesticated birds such as chickens, turkeys, ducks, geese, etc. that serve as a source of eggs or meat.
Poultry feed can be prepared from raw materials like oil cake, wheat bran, molasses, cereals, vitamins, and minerals. Proteins, largely of vegetable origin, encourage the normal development of pullets and help them to lay eggs longer.
[b]III. MARKET STUDY AND PLANT CAPACITY[/b]
A. MARKET STUDY
1. Past Supply and Present Demand
There is no planned feeding of chickens under traditional village production in Ethiopia and scavenging is almost the only source of diet. The scavenging feed resource base for local birds is inadequate and variable depending on the season.
Commercial Processed poultry feed consisting mainly of cereal grains, cereal grain by-products, and oilseed cakes are available from feed mills that are largely concentrated in and around the capital, Addis Ababa. None of the feed mills have pelleting facilities. This is a serious shortcoming, especially for efficient broiler production. The quality of mixed feed used is generally poor. Most formulations available do not have vitamin/mineral premixes. Ingredients and processed feeds vary in nutritive value and there is no regular quality control mechanism in the country. The absence of bulk deliveries and storage facilities increases feed costs and in some cases wastage occurs due to weevil infestation. In many instances, the cost of mixed feed does not seem to follow reductions in ingredient cost. Prices of mixed feed remain unduly high even at times when the price of the major component of mixed rations (e.g. corn) fall by more than 50%.
There are about 20 feed mixers in the country. However, only five of them are manufacturing purely for sale. The rest produces primarily for own consumption. Occasional sales are also undertaken when there is excess production over their own demand. The mixers and millers produce feed mixes for poultry, dairy, and beef, in order of importance based on volume and the average annual sale is 66 tons. Poultry feed production constitutes 80 % sales of these the mixers and the yearly production is 52.8 tons.
There are currently various initiatives being undertaken to promote the poultry sector in Ethiopia including genetic improvement (typically focusing on distributing of exotic breeds) and addressing veterinary health issues by government agencies, international organizations and Non- Governmental Organizations. There are complementarities between these initiatives and feed improvement. Therefore, investment in feed can fill the gap.
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