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I present my analysis on investment in the poultry sub sector in Uganda. Ugandans know this all because chicken are an integral part of the DNA of Ugandan life.
Despite this, having almost every one with knowledge of some form of chicken farming can however also be the worst enemy for the potential investor especially if you are looking to do it on a commercial basis. Local Ugandan chicken for example produce only 40 eggs a year just over 1 egg a month!
This in itself gives rise to price extortion from these middlemen.
These bottlenecks are because there is to date no formalised large scale transport distribution network to get your produce from the poultry producing area mainly Northern and Eastern Uganda to the key market mainly Central Uganda.
Furthermore our transport network is not well developed given the state of roads. You will therefore early on have to establish the market and distribution logistics for your produce as this can affect your profit. Cost of feed Chicken feed is perhaps one of the most important aspects to ensure profitability of your poultry business.
You must ensure you get the best quality feed as of course this means you will have healthy chicken and good quality eggs.
The high feed situation is pretty serious in Uganda and many Ugandan poultry farmers are being driven out of business and so before you invest, you need to consider this very carefully.
This high feed price is being driven by increase in prices of maize bran. Disease I touched upon this briefly when I earlier on mentioned coccidiosis.
There are however other chicken diseases like New Castle disease which can wipe out the entire poultry stock. Cost of capital Sustainable commercial chicken farming requires a fair amount of capital particularly because layers take about 17 weeks before they start producing eggs and so for this period there is no income.
The investor will therefore need to provide working capital for this period of about 4 months before he can expect any revenue. This working capital includes the key cost of chicken feed. From my estimates I will come to that later on you need about Shs 26m as start up capital for a chicken farm shaver brown variety.
I will deal with the details in the section below. Chicken are here to stay Chicken have been around a long time and in the developed world chicken is cheaper than beef. The reverse is true in Uganda and chicken is usually reserved for special days like when I had passed my P.
In Uganda, this is however going to change especially as our population grows and more people come out of poverty. Ugandan girls really love Chicken and chips! Excellent profitability return on capital Despite the several articles speaking about the cost of chicken feed crippling the industry I believe this industry sector still offers some of the best returns on investment.
From my estimates below, it has a return on investment of 1. I set out my estimates below. The estimates are based on a sustainable investment of layers of the shaver brown variety. All figures are in Uganda Shillings.
Chicken coop and related items: Electricity and water connection: Legal and other start up costs: First 4 months week 1.
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I specialized on Logistics and planning in any production company. My goal is to provide excellent planning and offer a unique logistics Services in any terrain of challenges to get the desire goal of my organization, through a team work and passionate services delivery.