AgriMahiti

ECONOMICS OF A COMMERCIAL BROILER UNIT

A. Project Cost

Capital Cost	Rs.
Construction of shed	120000
Cost of equipment	16000
Total	136000
Recurring Expenditure
Cost of day old chicks	21000
Cost of feed	57222
Medicines, labour, miscellaneous charges	8670
Insurance of birds	525
Insurance of sheds and equipment	687
Total	88104
Grand Total (A+B)	224104
or say	224000
Margin (15%)	33600
Bank Loan	190400

B. Techno economic parameters

Number of birds	1000
Batch strength	1000
Birds purchased per batch	1050
Birds considered for recurring expenditure	1020
Birds considered for selling	1000
Floor space per bird ( s.ft)	1
Cost of construction of shed (Rs. per sft)	120
Cost of equipment (Rs. per bird)	16
Cost of day old chick (Rs. per bird)	20
Feed requirement per bird ( Kg)	3.3
Cost of feed (average price Rs. per kg)	17
Medicines, vaccines, labour and misc. charges	8.50
Insurance per bird (Rs. per bird)	0.50
Insurance of sheds and equipment (Rs. per Rs.1,000/-)	5.05
Live weight of bird (Kg per bird)	1.6
Sale price (Rs. per kg)	60
Value of manure per bird sold (Rs. per bird)	0.50
Sale price of gunny bags (Rs. per bag)	10
Margin (%)	15
Interest on bank loan (% p.a)	12
Rearing period	6 weeks
Cleaning period of shed	2 weeks

Flock Chart

C. Income and Expenditure Statement

Years	1	2-7	8
Income
Sale of birds	576000	672000	672000
Sale of manure	3000	3500	3500
Sale of gunny bags	2992	3142	3142
Total	581992	678642	678642
Expenditure
Cost of chicks	147000	147000	147000
Cost of feed	381480	400554	400554
Cost of medicines & misc. charges	57800	60690	60690
Insurance of birds	3675	3675	3675
Insurance of sheds and equipment	687	687	687
Total	590642	612606	612606
Surplus	79454*	66036	66036
* Capitalised recurring expenditure excluded while arriving at the surplus

D. Calculation of NPV, BCR & IRR

Years	1	2-7	8
Capital Cost	136000
Recurring Cost	590642	612606	612606
Total Costs	726642	612606	612606
Income	581992	678642	678642
Residual value of shed			72000
Total Benefit	581992	678642	750642
Net Benefit	-144650	66036	138036
Disc cost at 15% DF	2848122
Disc benefit at 15% DF	2984778
NPW at 15% DF	136656
NPW at 15% DF	136656
BC Ratio	1.05
IRR			43.77%

E. Repayment Schedule

Year	Loan	Gross surplus	Interest	Principal	Total repayment	Net surplus
1	190400	79454	22848	24824	47672	31782
2	165576	66036	19869	19753	39622	26414
3	145823	66036	17499	22123	39622	26414
4	123700	66036	14844	24778	39622	26414
5	98922	66036	11871	27751	39622	26414
6	71171	66036	8541	31081	39622	26414
7	40090	66036	4811	40090	44901	21135