Information Memorandum

For

Broiler Poultry Farms(Controlled Sheds)

Contents1. Executive Summary2. Definitions3. History and Trends of Poultry Industry 4. Location Analysis5. Business Description.

a. Nature of Businessb. Structure of Broiler Industryc. Project Rationald. Important Issuese. Brief of Poultry Act 2010f. Infrastructure Requirement

6. Buying and Selling Pattern7. Farm Management & Processes8. Detail of Major Suppliers9. Human Resource Requirement10. Project SWOT Analysis

ExecutiveSummary

Executive Summary:

Introduction

Pakistan has a population of more than 160 million and an agriculture based economy with 70 percent of population living in the rural area. Agriculture sector contributes 25 % of GDP and the live stock contribution in agriculture sector is around 40 %. With the increase of population, accountability of mind of people and feed requirement in consideration of live stock, there was a need to motivate to scatter this sector into different diversions under the same head because a man consuming 2700 Kcal daily, should take at least 35 Grams of Protein daily but in Pakistan per capita protein availability is nearly 18 Grams daily. The people normally use agro based products to fill this vast gap between requirements and availability of protein. Even Agro based products can not meat the protein gap because that is being raised by more demand of people and with the increase of population. So this gap is covered by enhancing the production of protein from animal and bird origin. The main source of animal protein is beef, mutton, milk, poultry and eggs. In this regard, chicken meat is better portion to minimize the gap in protein availability within short period economical production. in addition, Livestock and Poultry Sector provide food to 160 million populations in the form of protein-milk, Meat, Eggs as well as skins and hides for value-added exports of quality leather goods.

Less efforts, high rate of return on investment, economical initial investment and concessions from government for poultry sector is a main charm to invest in this sector. The total cost of project is around 64.50 million. The financing for this sector is fall in Agricultural Credit. Low cost financial assistance is available from much financial institution in Pakistan. The payback period is around three to four years.

Definitions

Definitions

The meanings of certain technical words used for the preparation of this feasibility and gaining understanding of poultry industry are given below.

Poultry ProductionMeans any function related to intensive poultry operation.

Intensive PoultryMeans any of the functions like breeding, laying, hatching, operating, rearing, processing, rendering, and disposing including allied functions.

Allied functionMeans any operation aimed at enhancing the poultry production by minimizing the disease constraint including vaccine activities.

Vaccine ProductionMeans activities relating to manufacturing of biological agents in sectors for prevention of poultry diseases.

Poultry PractitionerMeans a person engaged in the activities relating to diagnosis and extending advice for poultry operations.

Poultry FarmMeans the premises constructed and erected for growing and disposing flock in accordance with the standard bio security measures.

PoultryMeans the species like chicken, turkey, quail, pheasant, duck, geese, swans, guinea fowl, etc.

Controlled ShedA completely bounded shed for broilers, where Temperature, food, water, environment etc are automatically controlled

BroilerA hen hatched through the special eggs mutated only for meat. It is in the inheritance of Broilers to fully grow in 6 weeks

Birds Hen and broiler are also know as birds

FlockGroup of Birds fetched to the Controlled Sheds to be raised collectively is known as Flock

Feed Special nutritious food for the broilers is known as feed

HuskA by-product of rice producing mills, spread on the floors of Controlled Sheds to keep the birds warm is known as Husk

VaccinationPreventive treatment of the broilers to keep them safe from the known common diseases

MedicationProcess of giving medicines to the effected flock through various modes

Feed Tube linesAutomatically controlled tubes dedicated to bring food from the store room to the specific empty pans.

PansSpecial pots for food, which are in easy excess of the broilers.

Disposal PitMeans the pit dug for disposal or deep burial of the dead birds and debris at the site.

Drinking LinesDedicated water pipes that automatically bring the water to the spark nipples

Spark NipplesA special nipple that drops water when a broiler touches its beak to the nipple.

Evaporative Cooling SystemA specialized cooling system that sucks the air through the wet pads and that eventually results in decreasing the temperature of the whole controlled shed.

Fans

6 to 8 Fans that through the inner air out of the controlled shed the diameter of each fan is around 5 feet.

PadsSpecialized layered foam covering the Controlled Shed from one end Pas are always kept wet.

Heating SystemA system designed to keep the broilers warm in winter.

Mortality

In the controlled Shed certain broilers from the each flock dies. This loss is inevitable.

Biosecurity

Biosecurity quite simply means protecting flocks from any type of infectious agent – viral, bacterial, fungal or parasitic.

History & Trends of Poultry Industry

History & Trends of Poultry Industry

There are two poultry farming systems in Pakistan - the small scale or rural, and the large scale or commercial poultry farming. The latter did not exist till 1963. In 1977, the government decided to improve and develop the rural poultry farming on commercial lines. New breeds like Fayoumi, Dhoki and Red were introduced as these were capable of producing 200-220 eggs per year. Besides, training, free vaccination, feed management, and cooperative societies for establishing small poultry farms of 50 or more birds were planned.

Progress of poultry industry remained slow till early 1970s. Since mid-70s the government provided several concessions to private sector such as the income tax exemption, liberal import of parent and grand parent stocks, machinery and equipment, free export of poultry and its products. This improved the growth rate to maximum of 25 per cent annually, till mid 1980s. The number of hatcheries increased from 15 in 1975 to 80 in 1983, production of eggs from 520 million to 1,700 million and the number of broilers from 6.2 million to 40 million. In 1983, Pakistan produced 3,150 million eggs and 97,710 metric tons of poultry meat of which 1,450 million or 46 per cent eggs, and 53,345mt or 54.6 per cent of meat came from the rural areas which kept on increasing.

The first modern hatchery unit was established in Karachi by the Pakistan International Airlines in collaboration with the Shaver - a Canadian firm. Since then there has been great improvement in the industry both in the urban and rural areas. The number of hatcheries increased from 22 in 1976 to 257 in 1996 and production of day old chicks increased from 15,500 million to 3,10,000 million. Similarly, the number of layers increased from 2,840 million to 10,950 million, production of eggs from 1,159 million to 5,757 million and production of poultry meat from 34,000 tons to 3,55,000 tons.

In 2004, egg production increased to 8,247 million and poultry meat to 402,000 tons. The share of meat in 2004 was 18.1 per cent of the total national meat production as compared to its nominal share of 2.46% in 1971-72. Export of poultry products started in 1978 and increased by 102 per cent in 1979-80, but started declining in the following years due to severe competition from the countries having big home markets. Lack of refrigerated cargo space, non-availability of space for day old chicks, high air freight charges and the lack of subsidies as paid by other countries are other constraints. For example, India paid 20 per cent subsidy on air export of its poultry products.

Three foreign fast food companies established their chain of outlets faced problems of obtaining 30,000 to 60,000 chicks per consignment per day due to the provision of 20-30 per cent substandard chicks which suffer from infection. They took permission to import commercial broilers or processed chickens. Due to increasing population, the poultry production has great potential.

A number of processing plants are now operative in the country. There is great potential to develop industry and poultry farming to increase meat production for domestic consumption and export, especially to the Middle Eastern countries.

New Trend and Currant Market Position of Pakistan

Poultry meat and eggs have always been the delicious and nutritious protein food for the people of Pakistan. Consequent to the tremendous growth in human population, poultry rearing the form of backyard farming shifted to organized commercial poultry production activities in sixties. The exponential growth in poultry sector is decreased 10 percent annually during after nineties. This sector generates employment (direct/indirect) and income for about 1.6 million people. Its contribution in agriculture growth is 4.81 percent and in livestock growth 9.84 percent. Poultry meat contributes 37 percent of the total meat production in the country. The currant investment in poultry industry is about Rs. 200 billion. It includes over 23,000 farms, 5.1 million broiler parent flocks, 2,900,000 new import layer parent flock, 285 hatcheries, 141 feed Mills, 100 home mixers and other related infrastructure. The production capacity of poultry fed mills stands up to 7.60 million. During the year 2008-09, 499 million day old chicks were produced while 28.42 million layers, 488.55 million broilers and 7.99 million breeding stock has been maintained in the country. The flocks produced 651 thousand tone poultry meat and 7620 million 3ttw in the form of animal protein for human food. Rural poultry also made a significant contribution, with production of 30.79 million day old chicks, 9.32 million cocks and 36.11 million layers. It is appreciated that the per capita per annum consumption of poultry meat has increased from 1.1 to 4 KG.

The poultry production sector despite its spectacular growth and development is facing some changes and problems which may hinder its present pace of development, amongst these major problems are poor marketing infrastructure, rise in cost of production, reduction in profit margin and high incidence of poultry diseases etc. these problems can be tackled by enhancing deficiency of production and human resource development in the field of poultry production to generate skilled manpower efficient to face emerging challenges in some of the tools to enhance its efficiency of production.

This fast growing dynamic sector is presently in the active phase of transformation form its conventional housing and management into a modern high tech housing with automatic feeding, watering, manure handling, grading and processing. Besides this, there has been a trend of adoption of integrated farming system. These new trends along with anticipated high growth rate in this sector, requires provision of high tech better skilled farm managers capable of handling poultry production activities under the modern environmental controlled housing and management systems.

For the last few years a new concept of “Controlled Shed” has emerged in the poultry industry. This is the state-of-the-art technique to raise the birds. This technique requires that the bird must be raised in the controlled environment. The temperature of the shed is controlled through very sensitive censors. The drinking water and the feed is provided to the birds through an automated system. The air passing through the shed is first filtered

and then eventually sucked out with the help of giant fans. The controlled shed has proved very effective in Pakistani environment.

Pakistan Poultry Industry 2008-2009

Poultry Industry of Pakistan has been become most profitable industry for 2 years. Almost 2.5 million people are engaged in this field, which are attached in this industry with different walks of field performing their duties. Pakistan Poultry Industry is scattered into five Provinces of Pakistan, according to its prosperity as follows:

1. Punjab2. Sindh3. Khyber Pakhtonkhwa4. Baluchistan5. Gilgat Baltistan

The following data regarding the Poultry Sector covering all range in itself shows that how much meat production and consumption is raising from last decade.

No of Broiler Parent StockJuly start to June end

Year No. of Sheds96 2 Million97 1.9 Million98 2.9 Million99 3.6 Million2000 3.8 Million2001 4.5 Million2002 4.1 Million2003 4.2 Million2004 5.4 Million2005 6 Million2006 7.5 Million2007 6.6 Million2008 7.1 Million

No of Layer Parent StockJuly start to June end

Year No. of Sheds (Numbers)96 140,00097 173,00098 200,00099 139,0002000 181,0002001 197,0002002 326,0002003 175,0002004 520,0002005 360,0002006 428,0002007 225,0002008 315,000

Feed Consumption in a Year

For Broiler 3.204 m.m.tFor Layers 0.837 m.m.tFor Breeder 0.3597 m.m.t

Location Analysis

Location Analysis:

Marketing of Distribution Channels:

The marketing of chickens follows the traditional channels of distribution. Generally, broilers are distributed in the market through middlemen (Arti) and wholesalers. The role of Arti is to identify a farm and negotiate the price. In some cases, the middleman provides Day Old Chicks and other farm inputs (feed, etc.) to the broiler farmers and then agrees to buy back the mature birds from them. Birds are transported to the urban market and are sold to retailers or market-street poultry shops. Birds are sold on live-weight basis. The time spent in getting broilers from the farm to the retail shop is brief. Although collection and handling of birds has improved with the use of loader vehicles, but it is an established fact that greater the distance between the poultry producer and consumer, more complicated is the marketing system including their collection, handling and transportation to the consumer or processing plants. The processing plant produces dressed chicken (slaughtered and cleaned). However, a very small amount of dressed chicken is available in the local retail market. The integrated processing units distribute frozen and dressed chicken packed in whole or cut-ups to the consumer through retail shops under their brand names.

The trick in marketing is quick availability of market information of chicken supply and demand, which will determine the selling price. The processed meat market is not currently well established in Pakistan. As a result complete meat is sold to poultry markets available at urban areas. In future there is a high chance of establishment of processed meat market. It will increase the competition and quality assurance in this field.

In Punjab, different Poultry Associations are working according to the marketing strategy of the related area to settle the Farm Rate, Market Rate and Retail Rate of chickens starting from day old chick to raised chicken ready for sale to the market in respect of their area rates settled by respective Associations. These Associations normally declare rates on daily basis as per demand and supply rule by considering the market condition.

Different Associations in all Over Pakistan are working to maintain the poultry Rates as under

Pakistan Poultry Association R24 Johar Town Lahore

Pakistan Vet nary Medical Association VRI Koppar Road

Poultry Traders Association Chohan Road Islampura Lahore

Abotabad Poultry Association Supply Bazaar Abotabad

Broiler Association Sargodha

The Worlds Poultry Association Allied Plaza Rawalpindi

The rates of chickens are normally different from area wise. For example, Lahore Market has two major Mendes in the area of Chuburgji and Sheranwala Gate and normally rates of both the Mendes are settled by Lahore Poultry Association and Pakistan Poultry Association together as per consumption and supply chain of chickens. Similarly, Gujranwala Market and Sheikhupura Market have farm rate one rupee high from Lahore Market because the status of broiler farms in these areas do not meat the standard requirement of consumption. In short, supply is less than demand of chicken and so the wholesalers move from these areas to Lahore and other areas near by the market to meet the chicken needs of their respective areas. From Lahore to Sahiwal, normally birds are sold to the market equal to the Lahore Market rates. But Multan area though has less supply chain of chicken and so the rate is normally set high from Lahore Market even 6-7 Rupees above from Lahore Market Rate.

Lahore to Multan Belt:

As usual from Lahore to Okara and Sahiwal and Multan, though Poultry Farms are enough to meet the consumption requirement of the areas but from some months, most of the farms are attacked by diseases due to the distance among the Poultry Farms not properly maintained as per the requirement of Biosecurity criteria. The most common disease occurred in most of the farms is H9 which is most dangerous for the birds causing the huge mortality within some days. That is why; these areas situated out of Lahore normally move to purchase chicken at Lahore and in Lahore normal survey shows that the consumption of chicken is 500,000 Kgs per day. Lahore is one of the biggest Markets of chicken in the production and consumption of the same. When the carriers out of Lahore move to Lahore to transact the chicken then Lahore Market fails to meet the local consumption and this is the reason that chicken Traders from Lahore prefers to purchase chicken out of Lahore to balance the chicken needs of the related areas because load of demand in Lahore is more than supply.

Business Description

Business Description

a. Nature of Business

The broiler farm is a project of livestock sector, in which, the day old chicks (DOCs) are raised on high protein feed for a period of six weeks. This business can be started both in rural and semi-urban areas in sheds. These sheds have all the required facilities for the broiler farm. The broiler birds are sold to traders and the whole sellers markets in the urban areas. Some times birds can also be sold directly to the shopkeepers in the urban markets. Broiler farming is a profitable venture depending on the demand of the meat in the market. Annually, six to eight flocks of birds will be raised on the same premises of a farm. Keeping in view the existing demand of poultry products this business is currently considered as best with respect to its profitability.

b. Structure of the Broiler Industry

The broiler industry is rapidly changing and highly technical. It is "vertically" integrated, meaning that all or most production aspects are owned and controlled by an individual company called an "integrator." Integrators usually own the breeder flocks, hatcheries, feed mills and processing plants and contract out the growing and egg production flocks to farmers. The integrator provides a contract producer with the chicks, feed, medication and technical advisors to supervise farm production. Under this system, the company retains ownership of the birds and expects producers to grow their flocks under very specific management programs. Company field representatives normally visit farms weekly to assist with management, but they may do so more often if necessary.

Vertical integration reduces product costs through coordinating and professionally managing each production stage. This approach not only improves cost efficiency, but permits the production of more uniform birds in large volumes necessary to successfully compete in the market. In this system, the integrator is responsible for all processing facilities, processing labor and salaries, and marketing activities crucial to the success of the poultry business. Processing and marketing are very specialized and require considerable expertise and experience for success. For this system to work effectively, integrators and producers make significant contributions to the process and depend on each other.

c. Project Rationale

Every community in the world is responsible to provide its residents adequate food and guarantee them freedom from hunger and malnutrition. It becomes especially important when about 15-20 per cent of the world population is still unable to obtain sufficient food to meet minimum nutritional requirements for a healthy and productive life.

The current poor nutritional status is due to lack of sufficient energy and protein in the food. A balanced diet is essential for good health, vigor and productive capacity of the people. Protein plays an important role in the formation of balanced human diet. There are mainly two origins of proteins, animal and plant. The main source of animal protein is beef, mutton, milk, poultry meat and eggs. In developing countries like Pakistan where the population is growing at a faster rate, the gap in production of food especially of animal origin is widening year after year.

The animal protein shortage seems still graver especially when it is compared with the protein intake of various developed countries like U.S.A., Canada, Germany, France, Japan and U.K., where consumption of protein is 79-95 gram per capita per day of which 46-65 gram is protein of vegetable origin.

Broiler meat is the cheapest source of animal protein available in the country. The time required for raising broiler birds is lesser than that for big animals. The consumption of white meat is increasing due to growing health consciousness in the masses.

According to the Agriculture Statistics of Pakistan the per capita consumption of poultry meat is increasing at a rate of 4% per annum. The existing daily availability of protein quantity per capita in Pakistan deriving from animal source including beef, mutton, poultry and fish combined amounts to 11 grams. This is far less than the recommended daily dietary protein allowance from animal source of 26 grams according to the World Health Organization standards.

Comparison of chicken and Eggs consumption in Pakistan Vs USA

Consumption Country Per CapitaChicken

Pakistan 4 KgUSA 28 Kg

EggsPakistan 45 NosUSA 250 Nos

Our GDP live stock sector covers 11 percent of total and moreover three and half crore persons are dealt in poultry sector.

Live stock counting in PunjabIn Million

Cow 16.170

Buffalo 20Sheep 606Goats 22.57Camels 0.22Chicken 40.28

d. Important Issues

Giving the chicks the best start in life will make it grow into a good broiler one must have:

1. Good Parent Stock.2. Quality Chicks.3. Control Early Chicks Mortality.4. Preparation For Arrival 5. Brooding / Management/ Preparation.6. Check for Mortality during Brooding.7. Care after Arrival Of Chicks8. Hygienic / Health 9. Control Of Wet Droppings / Litter Management10. Control Stress11. Feeding 12. Management of Chicks with Pasty Vents.

Chick’s quality is a subject of frequent concern to poultry as field performance is often linked by substandard chick’s quality. We should take care following factors before arrival of chicks:

1. The house is properly disinfected.2. Equipment like brooders, feeders, water is properly disinfected.3. Curtains are in position.4. Litter material is clean and dry.

Mortality can occur during brooding and these are due to:1. Exhaustion – due to high temperature, poor ventilation and high light intensity.2. Stress of transportation – chicks should be received during cool hours to reduce

stress.3. Impaction – due to eating litter material. Keep eyes on litter eating.4. Hooding of the Chicks – Due to chilling or due to power failure. Check brooder

temperature regularly.5. Pasty Vents – may due to poor quality of chicks or looseness of gut.6. Yolk sac infection – check with the hatchery.

The single most important factor in keeping chicks healthy is maintaining good hygiene it is your insurance policy. Healthy breeder & hygienic hatchery management contribute greatly to disease-free chicks. If good hygiene is maintained on the farm the chicks can achieve uninterrupted growth and production aided by appropriate vaccination and medication. Hygiene does not mean just choice of the right disinfection. It is a total concept dedicated to maintaining the highest cleanest standard in maintains healthy

chicks. Once a disease has broken out in a farm unit it may be difficult to stop. It is not always easy to recognize the onset of disease. Diagnose the cause or take corrective decisions. Treatment may be very expensive and mass medication methods inevitably treat healthy as well as diseased flock, adding to the financial burden.

Bio Security is also an important factor to consider. It requires:

1. Control of human traffic2. Control of rodents, insects and wild birds3. Control of vehicular traffic4. Control of equipment movement5. Control of stock movement6. Control of inputs (e.g. feed, water)7. Efficient clean-down and sanitation procedures8. Use of a suitable vaccination/medication programme9. Use of a suitable sampling and testing programme10. Implementation of a suitable action plan, should any infectious agent become evidentin a flock

e. Brief of Poultry Act 2010

The government of Punjab has recently introduced “The Punjab Poultry Production Act, 2010” whereas it is expedient to regulate the poultry production and marketing of poultry and poultry products in the province of Punjab beneficial for all stakeholders. Actually this Act is composed of three major subsections of Poultry.

Breeder Layer Broiler

Hereby, we are discussing this Act for the point of view of Broiler Farm in short summary.

The Punjab Poultry Production Act, 2010 constitutes five major heads discussed as below:

Chapter 1 (Definitions)

In this Act, unless the context otherwise requires, different terminologies regarding Poultry sector have been explained with the proper fraise and meaning already discussed above in Definition head.

Chapter 2 (Licensing & Registration)

No license shall be granted for a poultry farm, except if the provisions of Act have been complied with to the satisfaction of Authority.

This head is composed of two subsections.

a) Licensing and registration of new farmb) Licensing and registration of existing farm

The applicant intending to erect a New Poultry Premises shall apply on the Prescribed Form to the Licensing Authority, enclosing the following documents:

Ownership documents, Power of Attorney or Lease agreement of the proposed site

Detail regarding proximity of the farm Engineering drawing of the site including auxiliary structure Lay out plan of the site including the specs of the buildings Licensing and Registration Fee Registration Inception

Chapter 3 (Poultry Management & Biosecurity Arrangements)

In this chapter, poultry management and biosecurity arrangements like structure of house, surroundings, water system, pest extermination, disinfection, disposal of carcasses, medications, fire fighting, feed storing fencing of area of the site and flooring and sampling of the house are described.

Chapter 4 (Erection of New Poultry Farm)

Under this head, the following grounds for the location of a Farm and House are discussed.

Location of Poultry Farm

It should be located at an aerial distance of at lease 1000 meters from another broiler farm or layer farm or processing plant or rendering plant.

It should be located at an aerial distance of at least 2000 meters from another multiplier flock.

It should be located at an aerial distance of at least 3000 meters from a primary breeding farm.

Location of House

It should be located a distance of at least 12 meters from another house. The distance between the new house and boundary of the farm is not less than 6

meters. A house shall be 500 meters away from population settlement of more than 50

houses.

Chapter 5 (Miscellaneous)Miscellaneous precautions like cleaning and Penalty if any violation occurs, are defined in this head.

f. Infrastructure Requirement

The main factor which should be kept in mind before selection of location of poultry shed is availability of electricity and quality drinking water. We should ensure non availability of controlled shed especially manual within a radius of 2 to 5K.M. The infrastructure requirement consists of following points.

1. An agreement to grow chickens must be reached with a poultry company before proceeding with any plans to build or produce a poultry operation.

2. Property should be located within approximately 100 miles of complex facilities-feed mill, processing plant and hatchery.

3. Buildings (poultry facilities) must conform to industry standards and may vary from company to company.

4. House equipment must conform to industry standards as to type, amount, installation, etc., which will vary from company to company.

5. Farmstead, especially immediate area around the poultry buildings, must be prepared to accommodate feed trucks, catch and haul equipment and other vehicular traffic. In addition, poultry houses should be built a reasonable distance from neighbors to minimize problems.

6. Sitting of buildings should be discussed with proper authorities before construction, concerning state and local laws that may affect your operation.

7. Size and number of houses must be settled with Poultry Company (or equipment supplier) before construction. Ideal size is 40x400 feet and four controlled sheds at a spot.

Buying & Selling Pattern

Buying & Selling Pattern

The marketing of chickens follows the traditional channels of distribution. Generally, broilers are distributed in the market through middlemen (Arti) and wholesalers. The role of Arti is to identify a farm and negotiate the price. In some cases, the middleman provides Day Old Chicks and other farm inputs (feed, etc.) to the broiler farmers and then agrees to buy back the mature birds from them. Birds are transported to the urban market and are sold to retailers or market-street poultry shops. Birds are sold on live-weight basis. The time spent in getting broilers from the farm to the retail shop is brief. Although collection and handling of birds has improved with the use of loader vehicles, but it is an established fact that greater the distance between the poultry producer and consumer, more complicated is the marketing system including their collection, handling and transportation to the consumer or processing plants. The processing plant produces dressed chicken (slaughtered and cleaned). However, a very small amount of dressed chicken is available in the local retail market. The integrated processing units distribute frozen and dressed chicken packed in whole or cut-ups to the consumer through retail shops under their brand names.

The trick in marketing is quick availability of market information of chicken supply and demand, which will determine the selling price. The processed meat market is not currently well established in Pakistan. As a result complete meat is sold to poultry markets available at urban areas. In future there is a high chance of establishment of processed meat market. It will increase the competition and quality assurance in this field.

With the increase of population and standard of living of people, controlled Breeder, Layer and Broiler farms are being set up continuously by installing the automatic feeding and drinking systems in the houses and by means of which better controlled environment, economical growth of birds and production can be achieved to create ease to ultimate consumers and even better impact on economical growth. The ultimate distribution channel often prefer to Controlled Farms because of easy approach, better performance of birds with weight and less occupancy of diseases. The other important reason of raise of Broiler Farms in Pakistan by Commercial point of view is that many companies are introducing their own Units of different types in chicken meat to deliver the same to ultimate consumers, discussed below:

Meat Processing Meat

In Pakistan K&N, Menu, Zenith etc are the major units which are providing the upgraded and processed meat to the ultimate consumers by their plants imported from European technologies and the consumers are tended to move towards this processed meat directly from their outlets situated place to place in different cities to make the grading in their

meals. These Business Units normally meat the consumer’s requirement from their own Broiler Farms but the contingency of purchasing from buyers of processed meat is increasing day by day and so these units are not enough to meet the demand of the consumers from their own production and for this, those intend to move to purchase chicken directly from other sources of distribution channels or directly from Broiler Farms having contracts of certain demand as per their requirement. Controlled Broiler farm is the best approach for these Processing Units to meet the requirement of meat.

Farm Management &

Processes

Steps to consider before construction of a Farm

Meet with poultry company personnel and other producers to discuss the business aspects of contract production. Study contracts carefully and be sure you understand all aspects of contract production. Realize that you cannot depend on being an above average producer every flock. Flock performances vary even with good management, and individuals will sometimes need cash reserves or other sources of income to cover low pay periods. The financial fluctuations associated with poultry production are, however, generally less than for other agricultural commodities and represent one of the key factors in the stability of this enterprise.

An agreement with a poultry company to grow chickens will be necessary before financing or building of production houses can begin. Generally, companies require new production facilities to be in close proximity (25 to 35 miles) of complex operations such feed mills, processing plants, or hatcheries. This reduces expenses of feed delivery, chick delivery and live haul to the processing plant. Experience with growing chickens is not absolutely necessary for obtaining a contract, but certain producer characteristics (see summary) may be essential.

Meet with lending agencies to determine the availability of financing, interest rates, and payment schedules. Make realistic cash flow projections to determine feasibility of meeting financial obligations. Producers need to consider the consequences of below-average performance as well as average and above average projections.

All new construction must meet state and local laws regarding zoning and environmental impact. Discuss building plans with appropriate authorities before proceeding. Poultry facilities must conform to industry and company standards. House design and equipment recommendations vary by company preference and their technical representatives will provide detailed information for new buildings. It is recommended that the most current and widely accepted house design and equipment be chosen to allow the producer the option of growing for other integrators in the future.

In some cases, purchasing an existing production farm is a good way to enter the business. This approach also needs careful consideration before making a commitment. Location of the farm, condition and age of the housing and equipment, and purchase price of the farm are very important. Potential buyers should obtain the contracting company's thoughts on the future and productive potential of the farm and what improvements, if any, would be necessary for the company to continue placement of birds in the facilities. Potential buyers should keep in mind that cash flow from the poultry facilities may not be enough to support the purchase of non-production related assets such as dwelling house, barns, trucks, tractors, etc.

Key Areas for Farm Management Poultry companies have very specific management programs that producers are

expected to follow as part of their contractual obligation. To ensure proper management, companies provide field service representatives to work closely with producers on a regular basis. Producers and company field representatives’ work together to implement best management programs and achieve the highest flock performance levels possible. This benefits the company as well as the producer.

Maintenance for buildings and equipment is a constant job. As houses and equipment age, maintenance requirements for production facilities generally increase. Producers need to handle as much of the maintenance and repair work as possible, since hiring this type of work can be expensive and can substantially increase the cost of farm operation. Preventive maintenance on ventilation, feeding and watering equipment is essential for extending the productive life of these systems and must be done routinely.

House preparation prior to receiving birds is a very important producer management function as the first few days are critical to flock performance. Such preparation includes cleaning and disinfecting the house, spreading litter, setting up brooders, preheating the broiler house to the proper temperature, and being sure feeding, watering and ventilation systems are working properly. Establishing a good brooding environment before chicks arrive is more likely to ensure a successful flock.

Once birds are placed, a considerable amount of time is required for flock management activities such as collecting and disposing of mortality; keeping flock records; monitoring feed, water and environmental control systems; as well as observing for possible health problems. These activities must be done each day throughout the production cycle, but they generally require more time during the critical first two weeks of brooding. Any problems with the flock should be reported immediately to the company representative.

Disease prevention and control are important flock management factors. To protect the flock, access to the poultry house must be limited to authorized personnel. Producers should avoid visiting other poultry farms and eliminate any contact with other poultry, especially hobby, exhibit and backyard flocks. Decisions related to medications of flocks for disease problems or vaccination programs for disease prevention are company responsibilities and are done only as prescribed by company representatives.

Producers are responsible for disposal of all dead birds according to state approved methods.

Producers are responsible for maintenance of grounds and access roads around poultry houses. Keep weeds and grass mowed to reduce rodent and other pest problems. Areas around houses need to be well drained and roads need to be maintained for easy access to feed bins and load-out areas.

Do not use chemicals, pesticides, herbicides, insecticides, vaccinations or medications in or around poultry houses without company approval.

Farm Management and Processes

The farm process consists of following activities:

Delivery of day old chicks Feed delivery Water Environment Medication Lighting Major issues during process Bird for sale in market

For proper farm management we should take care following areas:

a. Day Old ChicksThe chicks should be of uniform size, active, alert and bright eyed. The shank or legCovering (skin) of healthy chicks appears bright and shiny. The weight of day old chick is normally 40 to 45 grams as per standard depending on Parent Flock.

b. BroodingIn simple words, Brooding means to give the artificial environment to day old chicks. In Brooding, it is necessary to balance the movement of necessary and unnecessary gases of house. Proper brooding temperature is required to keep the chicks in comfort. In the first week, 95ºF is quite comfortable. For the first one week, it is also essential to observe four to five times daily the condition (temperature) of the chicks. They should neither huddle nor move away from the brooding hover, but should be moving around evenly. As chicks grow, the temperature may be reduced at a rate of 5ºF per week until approximately 70ºF is reached in the sixth week.

c. Feeding and Drinking

Broilers are usually fed with the following two types of ration:

Broiler starter: It is fed to the broiler birds up to five weeks of age.

Broiler finisher: It is fed to the broiler of more than five weeks of age and continued till the age of marketing.

d. HousingThe chicks should be kept in a clean, dry and well-ventilated room. Broiler house should have proper ventilation as this provides the birds fresh air and carries off moisture. In controlled shed artificial air is provided through giant fans. The entire building including litter and all equipment should be fumigated. Never place chicks on a slick surface such as cardboard, plastic or newspaper. The smooth surface may result in spraddled legs or other leg problems. Bedding material is usually placed on the floor for the chicks. In addition to providing a non-slick surface for the chicks, it absorbs the moisture from the

manure and helps to maintain a "clean" environment. Wood shavings, cane fiber, ground corncobs, peanut hulls or rice hulls make good litter. Hay or straw make very poor litter and should not be used.

e. FeedersIt is essential to provide adequate feeder space. Ideally, one pan type feeder is sufficient for 50 birds.

f. LightingMost broiler growers provide 24 hours light during brooding and early growing period. Recent research conducted in windowless buildings, using intermittent lighting of 1-2 hours period, has indicated significantly improved feed efficiency. Initially, for first fifteen days, light intensity should be 40-60 watts per 200 sq. ft of space and this can be replaced by 15 watts bulb in the beginning of third week.

g. DrinkersAdequate drinking space should also be provided to the birds. The drinker should contain fresh, clean and cold water. It is necessary to provide extra water during summer. One drinker is sufficient for 50 birds.

h. LitterLitter is spread on the floor to prevent the direct contact with the floor. Straw, rice husk and sawdust are generally used for making the litter. It should be dry and free of moulds. Caked or moldy material should be removed and refilled with fresh materials. Extensively wet and dusty litter should also not be used. Using new litter for each flock is good for raising disease-free broiler.

i. VaccinationVaccination can be provided to chicks through injections, can also be mixed in the water and also through eye drops. Average vaccination price per bird mostly varies between Rs 2-5.

j. Fumigation and SprayingIt is essential to check all equipment and walls of the broiler house carefully that they are clean, and washed with disinfectant solution, and dried. The rooms should be white washed and sprayed before the arrival of birds. Disinfectant solution can be prepared with Phenol, Potassium Permanganate, Carbolic Acid and Formalin. A solution of Sodium Hydroxide/Caustic Soda with warm water can also be used to clean the house.

Summary of Critical Management Factors

Inside the House 1. Temperature -- should be kept at optimum level regardless of age of birds or

season. Your system should be able to respond to changing weather conditions night and day

2. Ventilation -- replaces oxygen used by birds, removes moisture and ammonia and must be continually monitored.

3. Feed and water -- Keep plentiful and clean according to production program. 4. Husbandry -- study the flock daily for signs of discomfort, disease, proper feed

and water consumption. With experience, you should be able to look at the birds and determine if they have a problem.

5. Understand that you are working with a live animal that may have special needs. 6. Culling chickens is a key part of the job.

Outside the House

1. Disposal of dead birds must be done according to state regulations. Your field manager will recommend proper methods.

2. Depending on the size of your operation, you may need additional equipment (such as a tractor with a front end loader and scraper blade, a manure spreader and a truck, flat bed trailer or other specialized equipment.)

3. Have a supply of spare parts for in-house equipment, so that motors and other equipment may be replaced quickly to avert problems.

4. Keep all drainage around house open and operable. No run-off water should be able to get into the house.

5. Keep all access roads in good repair with easy access to feed bins and poultry houses.

6. Keep weeds and grass mowed around the houses and farmstead to reduce rodent and other problems.

7. Understand environmental challenges created by poultry operations such as dust, smell, nutrient management, etc.

8. No chemicals, pesticides, herbicides, insecticides or medications should be used in or around poultry houses without approval by company.

Other Considerations1. Environmental management practices related to litter utilization, dead bird

disposal, air and water quality, dust, odor, and pest control are very important aspects of maintaining a viable poultry operation. Current management practices can generally handle these concerns for most farms. Poultry producers should understand, however, that environmental pressures on agriculture are likely to continue and may lead to increased costs of business for both producers and integrators.

2. Disposal or utilization of poultry litter is a major consideration for poultry farms. Broiler houses generally produce 130-150 tons of litter material annually. In Additional equipment such as a tractor with a front loader, a manure spreader, a truck or other specialized equipment may be necessary depending on the size of the operation and the type of management plan employed. Additional expenses for these pieces of equipment may need to be factored into budget projections.

3. Vacations and time off have to be scheduled around production cycles. Once birds are placed in the houses, they require constant care and management. Achieving good performance levels and above average pay out requires attention to details, and most producers feel they must remain close to their farms during this period.

Detail of Major Supplier

Detail of Major Suppliers

Imported Equipment Suppliers:1- Big Dutchman – Germany2- Roxell – Belgium3- Cumberland – Malaysia

4- SKA – Europe5- Volco - USA6- Tanzan – Turkey7- Bighead- Israel8- Codaf – Italy9- Termotechnica Pericole – Italy10- Hurdsman – China11- Jong She Industries Supply Sdn. Bhd – Malaysia12- La Meccanica – Italy13- Kuul Pads – USA14- Priva – Netherlands15- Poss – Canada

Local Equipment Suppliers:1- Eastern Veterinary Services – Rawalpindi2- B.A Traders – Lahore3- M.F Enterprises – Lahore4- Ghazi Brothers – Lahore5- Fine Fabricators – Lahore6- Electrical Technical Services – Murree Road Rawalpindi7- Athal Surgical – Sialkot8- Arshad Poultry Equipment – Haidrabad9- Ihrar Aslam Poultry – Karachi10- Altaf & Co – Lahore11- Afshar Packages Pvt. Ltd – Multan12- Eastern Vet nary services – Faisalabad13- M.K Associates – Islamabad14- Bilal Poultry Services – Gojar Khan15- Bony Industries – Sialkot16- Haw Baho Industry – Gujranwala17- Kissan Poultry & Agro Services – Mansehra18- Mirza Feed Plan Manufacturers – Faisalabad

Feed Suppliers:1- Sharif Feed Mills Pvt. Ltd – Okara2- Kashmir Feed – Multan Road3- Olympia Feed – Sheikhupura4- High Tech Feeds – Raiwind Road5- Itifaq Feeds – Kamalia Toba Tek Sing6- Ihasan Feeds – Faisalabad7- Islamabad Poultry Feeds – Rawalpindi8- Awan Feeds – Lahore9- Alfalah Feeds – Pattoki10- Alfarooq Feed Industries – Jaranwala11- Almezan Feeds – Karachi12- S.B Feeds – Karachi13- Anie Feeds – Gujranwala14- Asia Poultry Feed – Multan

15- ICI Wanda – Peshawar16- Punjnad Feed Pvt. Ltd – Faisalabad17- Prime Feeds – Kahniwal18- Chenab Feeds – Lahore19- Chakwal Feeds Pvt. Ltd. – Talagang Chakwal20- Sialkot Feed Industries – Duska

Medicine Supplier:1- Selmore Pharmaceutical - Lahore2- Star Laboratories – Lahore3- Pfizer Pharmaceutical – Lahore4- A.B. Pharma – Lahore5- M.A Pharma – Lahore6- Avicare Pharma – Lahore7- A.S.M Traders – Lahore8- O.K Pharma – Lahore9- Ample Trade Impex – Lahore10- ICI Pakistan Ltd – Lahore11- R.K Pharma – Lahore12- Etizan Pharma – Sergodha 13- Animal Health & Cure – Karachi14- A.W Pharma International – Rawalpindi15- Animal Health – Gujranwala16- Eterna International – Islalamabad17- Bio Vetenenary Pharam – Islamabad18- Better Traders – Faisalabad19- Plus Pharma – Gujranwala20- Polmade Enterprises – Multan21- Techman International – Peshawar & Lahore22- Hira Pharma – Koetta23- Cherry Pharma – Lahore24- Decent Pharma – Islamabad25- Zoic International – Lahore26- Ghazi Brothers – Lahore27- Cari Pharma – Murre Road Rawalpindi28- Grace Pharma – Lahore29- Glaxowelcome Pharma – Lahore30- Weight Cone Pharma – Azad kashmir

Hatcheries:1- I.B. Chicks – Rawalpindi2- Punjab Chicks – Lahore3- Pak Group – Lahore4- Islamabad Chicks5- Al-Feisal Chicks – Lahore6- MB Chicks –Rawalpindi7- SB Chicks– Lahore8- Saber Poultry – Lahore

9- Olympia Poultry – Lahore

HumanResource

Requirement

Human Resource Requirement for a Controlled Shed of 30,000 Birds:

Designation No. Education Salary/PersonRupees

1- Farm Manager 01 BSC 50,000

2- Supervisor 01 Diploma in Animal 20,000

3- House Man 08 Experienced 10,000

4- Electrician 01 Electrical Diploma 20,000

5- Mechanic 01 Diploma Holder 20,000

6- Security Guards 04 F.A 12,000

7- Peons 02 Metric 8,000

8- Store Keeper 01 B.Com 15,000

Human Resource Requirement for 5 Controlled Sheds 30,000 No Of Birds Each:

Designation No. Education Salary/PersonRupees

1- Farm Manager 01 BSC 50,000

2- Supervisor 02 Diploma in Animal 20,000

3- House Man 30 Experienced 10,000

4- Electrician 02 Electrical Diploma 20,000

5- Mechanic 01 Diploma Holder 20,000

6- Security Guards 06 F.A 12,000

7- Peons 02 Metric 8,000

8- Store Keeper 01 B.Com 15,000

SWOT Analysis

SWOT Analysis

Strengths: Proper farm management & supervision facilities are available from feed

manufacturers and qualified in-house team. Variety equipment for control house is available with in the country through registered agents.

Proper market information is available through Poultry Association and daily news papers and area wise market and to some extent by natural environment.

Mortality is a major fear for farming. Through controlled houses, proper supervision, suitable environment and medications, it is possible to achieve lowest mortality rate.

Some NOC Fee (As per Poultry Act, 2010 containing the rules and regulations) and lowest planning fee from government. Withholding tax and sales tax is also exempted for farming sector.

Sales are made mostly in term of cash or lower debtor turnover period is a norm of this industry.

Proper research and development facilities are available. The normal media of transport is through Road within Punjab. By reviewing Policy on export of Poultry and Poultry products, these can be

exported to any country of the world, provided Quarantine requirements of importers and exporters are fully met.

Weaknesses: Sheds can only be located far from the population. It may create infrastructural

issues. Especially proper roads are not available. Electricity shortage in the country can cause heavy cost of alternative source.

Some time the period of load shedding may increase up to six to ten hours especially in summer.

Low level of awareness in general public. Consumer demands and market conditions can change company production and

marketing strategies. Changes in company strategies in these areas can cause changes in bird placement schedules and sizes of birds grown. These situations can and do cause variations in producer income. Producers should, therefore, be prepared to periodically experience lower than expected incomes from their production units.

Opportunities: The per capita consumption of protein is much lower in Pakistan as compare to

requirement for a general person. Open houses are now converting into Controlled sheds but the percentage of

conversion till now is very little. White meat is recommended by the doctors for health. The trend of shifting from

red meat to white meat is much high. Fast food chains/Quick service restaurants are growing in Pakistan and they use

90% poultry related meat. The people normally are intending to move towards chicken products and meat

because the price of agro based products is become high due to natural environment and government policies.

Threats: Diseases can eradicate the entire bird population. Bird Flu is also a major fear for

this industry Impose of ban on marriage dinners can badly effected this industry.

Theft is also a major threat because the controlled houses are located far from the population.

The current hydrological drought, leading to agricultural drought is alarming for crops failure as canal water and rains are major source of irrigation for agriculture in Pakistan. A yield loss of 0.4 to 0.5 million tons for wheat crop has been estimated and so other ingredients in feed are being effective causing feed cost to rise.

Value added tax is being imposed on Poultry Products still decision is pending by Government, due to which the rates of chicken and eggs may increase 20 to 25 percent.