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Feasibility report of
twenty five ostriches
By Prof. Dr Ghulam
Abbas
1 2 / 4 / 2 0 1 8
Preface
The purpose of this document is to facilitate potential
investors in Ostrich farming which may form the
basis of an important investment decision and covers
various aspects of project concept development, start-
up, production, finance, and business management.
CONSUL
TANT
INVESTM
ENT
G
PR
CONSULT
ANT
12-04-2018
1
BRIEF DESCRIPTION OF PROJECT:
The general practice is one male for two females (trio) for an average output of 60 eggs per
female and 120 eggs for breeding season, and with good rearing techniques one can get 75
slaughter birds (10 months period).
Space requirements (trio):
Age Indoor Outdoor
1-2 Days Building 2 sq Feet/Bird 10-15 sq Feet/Bird
22-90 Days 30 sq Feet/Bird 150 sq Feet/Bird
90-300 Days 300 sq Feet/Bird Min 2000 sq Feet/Bird
Breeding/Selection Only open space 1500-2000 sq Feet/Bird
12 months & Older 500 sq Feet/Bird Mini Space 2000 sq Feet/Bird
Production System:
Production system is based on the basis of 2 different rearing techniques:
Poultry and Cow Farming.
Production is a semi-intensive farming , indoors and outdoors (building and free space)
Production Cycle (4 STEPS):
Age Housing
Starters (Chicks) 1 day to 3 month Poultry Building and
Adjoining Free Space
Fattening Ostriches 4-12 months Cow or Sheep Building and
Adjoining Free Space
Selection For Breeding 12-24 months Free Space, Building is
Optional
Breeders + 24 months 2-3 Kanals Land for one trio
(Building is Optional)
2
Project Economics
All the figures in this financial model have been calculated for 25 Ostriches for total area of
around 21776sq.ft(4kanal), that would be used for different functions of the farm. The following
table shows inter nal rates of return and payback period.
Table 1. Project Economic
Description Goat
Internal Rate of Return (IRR) 18.5%
Payback Period (yrs) 5.5
Net Present Value (NPV) 34,85,000 Rs
Project cost
Following requirements have been identified for operations of the proposed business.
Table 2. Project Cost
Project Investment Total
Ostriches 1,25,000 Rs
Building 24,75,000 Rs
Machinery & Equipment 60,000Rs
Outer wall / Fencing 8,25,000Rs
Total Capital Cost 34,85,000 Rs
3
Ostriches& Feeding Cost:
Now a day, Government is giving subsidy on ostrich farming, Bird of 15,000 rupees in just 5,000
rupees.
Desctiption No. of birds Price/Bird (Rs) Total Cost (Rs)
Birds 25 5,000 1,25,000 Rs
Feeding 25 10,000 2,50,000 Rs
Total Cost 3,75,000 Rs
Space Requirement
Details of the area required are given below:
Table 3. Space Requirement
Description Space per
bird
(sqft)
Total
space
(sqft)
Cost per
(sqft)
Total cost
(Rs)
Sheltered for 25 birds (covered) 220 5500 350 19,25,000Rs
Open paddock for 25 birds 440 11000 50 55,000Rs
Total 24,75,000Rs
Machinery and Equipment
Following table provides list of machinery and equipment required for Goat Farm working for
Livestock sector.
Table 4. List of Machinery and Equipment
Farm supplies Unit Cost (Rs) Total Cost
4
Feeding mangers5 5,000 25,000Rs
Chaff cutter/(Tokka) 15,000 15,000Rs
Water pump 10,000 10,000Rs
Other farm equipment 10,000 10,000Rs
Total cost 60,000Rs
Human resource requirement
The table above provides details of human resource required for goatfarm.
Table 5 Human Resource Requirement
Description No. of worker Salary /
month (Rs)
Total cost per
month (Rs)
Salary / yr
(Rs)
Worker 2 10,000 20,000 2,40,000Rs
Total cost 2,40,000 Rs
Store house, Workers room & Office room
The table provides details about the room made to store feed and other necessary equipment
mandatory to run the ostrich farm successfully.
Workers room provided to the workers for rest in their leisure time.
Office room used for the owner or doctor to deal with their customers and patients respectively.
Table 7. Store house, Workers room & Office room
Description Total space
sqft
Cost per sqft Total cost
Store house 25×20 500 350 1,75,000Rs
Workers room 20×20 400 350 140,000Rs
Office room 15×15 225 400 90,000Rs
Total Cost 4,05,000 Rs
5
D rugs & Vaccination Cost
The table provides details about the drugs and vaccinations used to compete with infectious
diseases affecting goats.
Table 8. Drugs & Vaccination cost
Description Cost per animal Total no. of animals Total cost
Drugs 150 25 3750 Rs
Vaccines ______ ______ ______ Rs
Revenue Generation
Table 9. Revenue Generation
Product Average
Weight/Bird
(Kg)
Total Weight
(Kg)
Price per kg Total Revenue
( kg )
25 Ostriches 70 1750 700 12,25,000Rs
Total 12,25,000Rs
6
Profit loss statement
Cost & sales Cost
Feed & vaccination 3,750 Rs
Cost of ostriches 1,25,000Rs
Direct labor 2,40,000Rs
Transportation 1,00,000Rs
Repair & maintenance 1,74,500Rs
Electricity 60,000 Rs
Outer wall &Building cost 33,00,000Rs
Total cost 40,03250Rs
Temporary expenditure
+
Description Cost
Feed & vaccination 3,750Rs
Direct labor 2,40,000Rs
Transportation 1,00,000Rs
Repair & maintenance 1,75,500Rs
Electricity 60,000Rs
Total cost 5,79,250Rs
Permanent ependiture
Description Cost
Outer wall,Equipment&Building 33,60,000 Rs
Ostriches 1,25,000Rs
Total 34,85,000 Rs
7
Profit & Loss Statement
Finance Per year
Cost 5,79,250Rs
Revenue 12,25,000Rs
Gross profit 6,45,750Rs
Ostrichchicks need5 ft2
cementedfloorareaperchick.A farmercan start the businessfrom50 chicks
for this250 ft2
issufficientfor2to 4 months.Afterwards,these 50birdsare transferredtomuddyland
of 1500 ft2
where itcan pass itentire life Supplyof drinkablewater.Forthisfarm one person having
goodmanagerial expertise isenough.
Provide gritandgravel forproperdigestion.
Signature
__________________________________

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Feasibility report for 25 ostriche by dr. ghulam abbas

  • 1. Feasibility report of twenty five ostriches By Prof. Dr Ghulam Abbas 1 2 / 4 / 2 0 1 8 Preface The purpose of this document is to facilitate potential investors in Ostrich farming which may form the basis of an important investment decision and covers various aspects of project concept development, start- up, production, finance, and business management. CONSUL TANT INVESTM ENT G PR CONSULT ANT 12-04-2018
  • 2. 1 BRIEF DESCRIPTION OF PROJECT: The general practice is one male for two females (trio) for an average output of 60 eggs per female and 120 eggs for breeding season, and with good rearing techniques one can get 75 slaughter birds (10 months period). Space requirements (trio): Age Indoor Outdoor 1-2 Days Building 2 sq Feet/Bird 10-15 sq Feet/Bird 22-90 Days 30 sq Feet/Bird 150 sq Feet/Bird 90-300 Days 300 sq Feet/Bird Min 2000 sq Feet/Bird Breeding/Selection Only open space 1500-2000 sq Feet/Bird 12 months & Older 500 sq Feet/Bird Mini Space 2000 sq Feet/Bird Production System: Production system is based on the basis of 2 different rearing techniques: Poultry and Cow Farming. Production is a semi-intensive farming , indoors and outdoors (building and free space) Production Cycle (4 STEPS): Age Housing Starters (Chicks) 1 day to 3 month Poultry Building and Adjoining Free Space Fattening Ostriches 4-12 months Cow or Sheep Building and Adjoining Free Space Selection For Breeding 12-24 months Free Space, Building is Optional Breeders + 24 months 2-3 Kanals Land for one trio (Building is Optional)
  • 3. 2 Project Economics All the figures in this financial model have been calculated for 25 Ostriches for total area of around 21776sq.ft(4kanal), that would be used for different functions of the farm. The following table shows inter nal rates of return and payback period. Table 1. Project Economic Description Goat Internal Rate of Return (IRR) 18.5% Payback Period (yrs) 5.5 Net Present Value (NPV) 34,85,000 Rs Project cost Following requirements have been identified for operations of the proposed business. Table 2. Project Cost Project Investment Total Ostriches 1,25,000 Rs Building 24,75,000 Rs Machinery & Equipment 60,000Rs Outer wall / Fencing 8,25,000Rs Total Capital Cost 34,85,000 Rs
  • 4. 3 Ostriches& Feeding Cost: Now a day, Government is giving subsidy on ostrich farming, Bird of 15,000 rupees in just 5,000 rupees. Desctiption No. of birds Price/Bird (Rs) Total Cost (Rs) Birds 25 5,000 1,25,000 Rs Feeding 25 10,000 2,50,000 Rs Total Cost 3,75,000 Rs Space Requirement Details of the area required are given below: Table 3. Space Requirement Description Space per bird (sqft) Total space (sqft) Cost per (sqft) Total cost (Rs) Sheltered for 25 birds (covered) 220 5500 350 19,25,000Rs Open paddock for 25 birds 440 11000 50 55,000Rs Total 24,75,000Rs Machinery and Equipment Following table provides list of machinery and equipment required for Goat Farm working for Livestock sector. Table 4. List of Machinery and Equipment Farm supplies Unit Cost (Rs) Total Cost
  • 5. 4 Feeding mangers5 5,000 25,000Rs Chaff cutter/(Tokka) 15,000 15,000Rs Water pump 10,000 10,000Rs Other farm equipment 10,000 10,000Rs Total cost 60,000Rs Human resource requirement The table above provides details of human resource required for goatfarm. Table 5 Human Resource Requirement Description No. of worker Salary / month (Rs) Total cost per month (Rs) Salary / yr (Rs) Worker 2 10,000 20,000 2,40,000Rs Total cost 2,40,000 Rs Store house, Workers room & Office room The table provides details about the room made to store feed and other necessary equipment mandatory to run the ostrich farm successfully. Workers room provided to the workers for rest in their leisure time. Office room used for the owner or doctor to deal with their customers and patients respectively. Table 7. Store house, Workers room & Office room Description Total space sqft Cost per sqft Total cost Store house 25×20 500 350 1,75,000Rs Workers room 20×20 400 350 140,000Rs Office room 15×15 225 400 90,000Rs Total Cost 4,05,000 Rs
  • 6. 5 D rugs & Vaccination Cost The table provides details about the drugs and vaccinations used to compete with infectious diseases affecting goats. Table 8. Drugs & Vaccination cost Description Cost per animal Total no. of animals Total cost Drugs 150 25 3750 Rs Vaccines ______ ______ ______ Rs Revenue Generation Table 9. Revenue Generation Product Average Weight/Bird (Kg) Total Weight (Kg) Price per kg Total Revenue ( kg ) 25 Ostriches 70 1750 700 12,25,000Rs Total 12,25,000Rs
  • 7. 6 Profit loss statement Cost & sales Cost Feed & vaccination 3,750 Rs Cost of ostriches 1,25,000Rs Direct labor 2,40,000Rs Transportation 1,00,000Rs Repair & maintenance 1,74,500Rs Electricity 60,000 Rs Outer wall &Building cost 33,00,000Rs Total cost 40,03250Rs Temporary expenditure + Description Cost Feed & vaccination 3,750Rs Direct labor 2,40,000Rs Transportation 1,00,000Rs Repair & maintenance 1,75,500Rs Electricity 60,000Rs Total cost 5,79,250Rs Permanent ependiture Description Cost Outer wall,Equipment&Building 33,60,000 Rs Ostriches 1,25,000Rs Total 34,85,000 Rs
  • 8. 7 Profit & Loss Statement Finance Per year Cost 5,79,250Rs Revenue 12,25,000Rs Gross profit 6,45,750Rs Ostrichchicks need5 ft2 cementedfloorareaperchick.A farmercan start the businessfrom50 chicks for this250 ft2 issufficientfor2to 4 months.Afterwards,these 50birdsare transferredtomuddyland of 1500 ft2 where itcan pass itentire life Supplyof drinkablewater.Forthisfarm one person having goodmanagerial expertise isenough. Provide gritandgravel forproperdigestion. Signature __________________________________