The document summarizes and compares the business perspectives of a poultry farmer and retailer. A farmer requires around 0.25 acres of land, 8 lakh infrastructure costs and 2 lakh working capital for a farm of 5,000 birds. After subsidies, the total cost is 7.5 lakh with risks of disease and predators. The monthly profit is around 26,000 rupees. In contrast, a retailer needs only a small store, labor, and transportation which costs around 16,500 rupees monthly. With margins of 25 rupees per bird and selling 50 birds daily, the retailer's monthly profit is around 46,000 rupees. While farming takes more investment and risk, opening a retail

1. AGRI-BUSINESS
MANAGEMENT SYSTEMS
Presented by
Dheeraj Amar Shelar
Roll no 33
Section 1

2. Topic of presentation
Poultry Business Plan Analysis –
Farmers-Retailers Camaparative
analysis.

3. Farmers perspective
Let us assume that farmer is putting a poultry of 5000 birds (not layers).
Therefore for setting a poultry of 5000 birds there will be following
requirements.
1. Land – around 0.25 Acre
2. Infrastructure – around 8 lakh + 2 lakh working capital
3. Labour
4. Equipment's / water / Electricity / Vehicle for Transportation
Therefore for a farmer the cost for setting the poultry business will go upto
10 lakh (Approx).

4. Now let us consider 25% subsidy by NABARD for setting a poultry
therefore total cost goes up to Rs 7,50,000 lakh.
For this, farmer have to go for loan process which will include
monthly instalments from his net profit.
And also he is having many risk factors like diseases attack on birds
like bird flu.
External risk factors like wolf, dogs and other wild animals.

5. Calculations of Profit gained by a farmer
behind 5000 birds.
 The average total weight of bird in 40 to 45 days will be around
1.8 kg
 Therefore total weight of 5000 birds = 5000 x 1.8 = 9000 kg.
 A farmer gets 6 Rs per kg of net margin excluding all his operational
expenses i.e. 9000 x 6 = 54,000 Rs
 That is a farmer gains for 45 days is 54,000 Rs.
 For 30 days Profit will be 36000 Rs. (54000 / 45) x 30 = 36000 Rs.
 Therefore Subtracting 10,000 Rs as his expenses(labour, Monthly
instalment of loan, water, Electricity, petrol etc) we will get around
Net profit of 26000 net profit (monthly).

6. Retailers perspective.
Let us consider for one retail store
 Requirements
1. A small store on attractive location on rent
2. One labour for one store
3. Vehicle for transportation
4. Electricity, water, small Equipment's for cutting birds
 Therefore total Investment for starting a retail store will be very less
compared to setting a poultry farm.

7. Let us Calculate the profit gained by Retailer.
Rent of store 3500 per month + Other expenses 1000 Rs = 4500 Rs
 Daily wage for labour 400 rs per day + food. For one month it will be 400 x
30 = 12,000.
Now total monthly expenses = 12000 + 4500 = 16500 Rs/per month.
 Margin for a retailer behind per bird is 25 Rs (approx)
Let us assume avg. daily sloterring of 50 birds = 25 x 50 = 1250 Rs per day.
 i.e. per month it will be 1225 x 30 = 62,500 Rs
 subtracting monthly Total monthly Expenses it will give
= 62500 – 16500
= 46000 Rs net profit including all monthly expenses
 If there % such stores on various location than net profit will be
1,38,000 Rs

9. According to analysis it can be clearly seen that opening a retail store is
always beneficial provided one should be excellent at managing the business
with his managerial skills.
Setting a poultry farm is not bad but profit share compared to the retailer is
less though the farmer is taking all necessary care of bird, nourishing them
and making them consumable for end consumers.
 But here farmer can gain even more then retailer only if he sets poultry farm
along with his own retail outlets, provided he should be smart at managing
all circumstances, because he has to play two roles simultaneously one as a
farmer and as a entrepreneur.

10. ….Farmer is the only person
who Dares to buy his inputs in
retail price
….. Sells his produce in
Wholesale price…