Executive Summary

BD Organic Farm is the first in Bangladesh to provide 100% organic chicken. In recent times
people of Bangladesh have been very health conscious and we now have the perfect
opportunity to serve the people and provide them with healthier chicken. In the first years
according to our financial studies we will be selling 1700 chicken 900 of them are layer
chickens and 800 of them are broiler chickens. Raising chickens organically, for eggs, meat or
both, is a low cost project that provides a rapid return on our investment. It takes around 1 to
1.5 million taka to start our business. Many chickens will begin laying eggs by the time they are
five months old and extra roosters can be butchered for meat at around four months of age. At
first we explained our company mission, vision, values and strict guide lines for employees that
will always be followed. Then we have used Porters five forces, PEST Analysis and SWOT
Analysis to analyze and understand the current status of our business in Bangladesh. Moreover,
the industry and product life cycle has been elaborately described using a diagram. Core
Competency and competitive advantage both are very important for any company to survive in
the long run. This report specifically describes the core competency and competitive advantage
of our new venture. Initially we have targeted business to business customers only and the
details are described in this report. Physical environment on which the business will continue is
very important. So we have elaborately described everything about our business location,
buildings, Sanitation, equipments and the organic feed that will be fed to the chicken. The
whole production process has also been described in brief. A very specific description of the
marketing plan and the human resource strategy has been done in this business report. Finally,
the financial statements including income statement, balance sheet, cash flow statement,
assumptions etc has been added and these calculations have become a very crucial and
important part of this business report. This report contains all that an investor needs to know.

Profile of the Team

1. Tasneem Tazakka Amin

ID: 1110824030
Designation: Chairperson & CFO

2. Lokman Hossain Mozumder

ID: 1110675030
Designation: Marketing Manager

3. Juned Bin Haider

ID: 1120691030
Designation: Operation Manager

Company Overview
Name:

BD Organic Farm

Logo:

Tag Line: Prakritik Murgi, Shera Murgi

Mission Statement
Our mission is to provide quality healthy organic meat for our customers consumption, in
accordance to the quality and food safety standards. Our commitment is to aware more people
about the existence of organic meat consumption and thus so enhancing our customer range.
Vision Statement
Our vision is to continue to consolidate the market positioning of our company. We intend to
optimize our business results by promoting teamwork and professionalism, and upholding our
social commitment. We hope to provide services to our future customers.

Values
It is very important that we follow certain values for our business complying with international
business. We will be built on a foundation of integrity, teamwork, customer focus, , quality and
food safety. We believe in operating our business at the highest ethical standards, and we
ensure to sustain our culture.
Company Guidelines for employees
We will follow flexible workplace and ensure that workers follow companys code of conduct.
Following business ethics will be highly encouraged my employees. Legal laws and regulations
must be followed provided it is maintained throughout the hierarchy. Any conflict of interest,
disputes between employees and supervisors must be brought to attention to the
management. The working policies such as working hours should be productive. Hostile
environment will not be tolerated. In addition to that we will maintain a non discriminatory
workplace. We will not be biased towards

Race- If the employee is eligible for the job; we will make sure he/she will not be
discriminated due to race.

Gender- Any person male or female resulting on their capabilities will be applicable for the
job. Also, transgender people will not be undermined if they are good enough for the job.

Religion- Different religious background will not be a problem as long as employees respect
each others religion.

Ethnicity- People from different ethnicity will not be discriminated provided they are
habituated with our local culture and system.

Nationality- It is preferred that the employees nationality should be Bangladeshi, because it

will be difficult for a person of different nationality to accustom to our culture. But if they
are able to do so, they will not be discriminated.

Color- We will not be discriminative towards the skin color of our employee.

Age- The age limit will be 18 or above.

Disability- An employee must be qualified enough to do the job. If a person is disable and if
he/she is capable and it falls under reasonable accommodation that person will be good
enough for the job. Otherwise if that person falls under undue burden it would be
impossible for them to be provided with logistic supports.

Pregnancy- Any woman due her pregnancy will not be discriminated.

Sexual orientation- Any kind of sexual behavior will not be tolerated. In addition, we will
maintain a sexual harassment policy, since all employees have a right to work in an
environment free from the demoralizing effects of harassment or unwelcome offensive or
improper conduct. Sexual harassment or harassment based on race, gender, color, religion,
national origin, age, sexual orientation, gender identity or expression, disability, or veteran
status or any other status protected by law will simply not be tolerated at our company.

CSR (Corporate Social Responsibility):

It refers to a companys responsibility towards the society. Now, since we are just starting a
business we are not that focused on CSR. Our key product is organic chicken which is very
healthy for consumption. This is kind of CSR activity as we are doing what is good for our
customers. Moreover, our waste disposal system will be nicely planned so that the
environment, people and even the employees are not affected by it.
Key products and services:
We will mainly provide organic meat of

Chicken - Broilers, layers,

And organic eggs produced

Industry Overview and Analysis

Porters 5 Forces:
Threat of new entry:
In our business, the threat of new entry is quite high: if anyone looks as if we are making a
sustained profit, new competitors can come into the industry easily, reducing profits, since it is
relatively inexpensive to enter into the business. Experience is required and training can be
done easily. There is good opportunity for achieving economies of scale. Moreover, there is
low barrier to entry.
Competitive rivalry
Since our business is completely organic, there are no businesses that are currently raising
organic chicken, giving us the complete advantage to take over the market. However, the local
produced chicken (broiler, farmed or local) can still be our competitor as we will be charging a
higher price. Consumer might not switch their taste.
Threat of substitution
There is great demand for chicken meat in Bangladesh. However, the locally produced chicken
can act as a substitute for organic chicken.
Bargaining power of supplier
Organic chicken is not so much different form local chicken except it is fed grain, wheat etc. So
there is large number of suppliers exhibiting lower bargaining power. So suppliers cannot drive
up the prices.
Bargaining power of customer
Our primary customer will be supermarkets (Agora, Meena Bazar) and restaurants. There is
higher bargaining power for customers as they can drive the prices down because there is
availability of substitute.
6

PEST Analysis
Political:
The first element of a PEST analysis is a study of political factors. Political factors influence our
business in many ways. Political factors can create advantages and opportunities. Conversely
they can place obligations and duties on our business. The recent havoc in Bangladesh has been
destructive for many businesses and we are likely to be affected by it as well. Political factors
include the following types of instrument:
- Rules passed on by the Government
- Voluntary codes and practices
- Market regulations
- Trade agreements, tariffs or restrictions
- Tax levies and tax breaks
- Type of government regime (we are democratic)
Non conformance with legislative obligations can lead to sanctions such as fines, adverse
publicity and imprisonment. Ineffective voluntary codes and practices will often lead to
governments introducing legislation to regulate the activities covered by the codes and
practices.
Economic:
Economically we are a developing country and our business shall provide employment
opportunities which would increase our economic growth. The growth for our business is huge
as people are more health conscious.
Social:
The third aspect of PEST focuses its attention on forces within society such as family, friends,
colleagues, neighbors and the media. Social forces affect our attitudes, interest s and opinions.
These forces shape us, the way we behave and ultimately what we purchase. For example the

people of Bangladesh are changing their attitudes towards their diet and health. As a result for
the demand for organic food is rising.
In summary we are able to offer products and services that aim to complement and benefit
peoples lifestyle and behavior. If organizations do not respond to changes in society they will
lose market share and demand for their product or service.
Technological:
Our poultry is simple and effective and it does not require much technology to start the
business. Although, the technology infrastructure such as the internet and other information
exchange systems including telephone, fax machine and computer will be acquired.
Technology has created a society which expects instant results. This technological revolution
has increased the rate at which information is exchanged between stakeholders. A faster
exchange of information can benefit our business as they will be able to react quickly to
changes within our operating environment.

SWOT Analysis:
Strengths

We are the fast movers

Unlike conventional chicken, our chickens are healthier and tastier

No antibiotics are used

Weaknesses

Lack of expertise

Unavailability of inventories

Opportunities

People of Bangladesh are frustrated and looking for natural products

Branded fast food chains like KFC, BFC are positive towards organic chicken

Threats

Consumers lack of knowledge about organic products

Decrease in price of local chickens

New government laws and regulations

Industry and product life cycle

In Bangladesh the organic poultry farm has not yet been established. So the people are not
aware of the product. We will be the first one to introduce it in the market. When we talk
about the product life cycle, the product is in its introductory stage, so its naturally more likely
to incur loss at this stage. As the product is new in its product class, the customers might not be
aware of its usefulness. So, extra information about the product should be communicated to
consumers through various media and create awareness and create need in the market. As we
are the first one to introduce it in Bangladesh so we do not have any threat of competitors.
There is high potential so we can hope that the product will be popular among the whole
country and will reach to the growth stage sooner. Growth stage comes with the acceptance
and popularity of the product in the market. The gradual growth of the sales and profit will help
to extend it largely.

Core Competencies:
Our core competency is the uniqueness of our product and the way the final product is
achieved. We are providing our customers with organic chickens and we are the first to do so.
Eating organic chickens can help limit your exposure to pesticides and chemical-based
fertilizers. Organic chicken farming is cleaner and more environmentally friendly. Our organic
chickens do not contain antibiotics which help prevent the development of resistant bacterial
strains. Our poultry are fed corn, wheat, barley, as well as nutri-balancer crab meal and field
peas. So to conclude we can say that our core competency is that we are providing organic
chickens and we are the only one to do so in Bangladesh.
Competitive Advantage
As Organic Poultry is new to the market so we already have a advantage of having no
competitors and if it is correctly assessed then it will have a great opportunity of rapid market
growth. Still there is a possibility of losing market share to new competitors but in that stage
firm will take actions like price cutting and promotional activities to gain back market share. The
other challenges are securing the important channels, such as the food suppliers and the chick
suppliers, These are very important to carry on the business. The unique advantages of these
chickens are its size and by eating organic chicken provides a number of health benefits, and
also promotes a healthier ecosystem. We will be going for patenting it. As it grows the brand
gets established, sooner people will be able to identify the product and we will be able to
create a distinct image on the customers mind.

Market Overview
Target Customers

Branded fried chicken providers like KFC, BFC, CP and others

Renowned superstores like Shopno, Agora, Best Buy, Meena Bazar etc

High Profile community centers like Ananda Bhuban, Amirimi, Hilton etc

10

Size and Growth of the Market

The organic chickens still do not have any market but the normal chickens are hugely popular.
People in our country are still not aware of the organic chickens. The analysis is to determine
the attractiveness and the strengths, weaknesses, opportunities and threats. The biggest
advantage as it is new to the market, weakness it is costly comparing to the normal chickens in
the market, It has a great opportunity in the near future and lastly the threats will be the new
competitors.
7. Company Value Chain Analysis and Operation Plan
Existing Core Competencies:
As mentioned before our current core competency is our organic chicken and the fact that we
are the first in Bangladesh. Poultry chickens in Bangladesh are usually fed chemical mixed feed
to artificially enhance their health and are injected with antibiotics. People of Bangladesh are
frustrated of being surrounded by formalin and chemical used products. So our introduction of
organic chickens is expected to gain a lot of customer attentions.
Future Core Competencies:
We expect our future core competency to be the experience and knowledge we will gain on
organic poultry farming in Bangladesh. We will have a vast knowledge on climate and soil
condition of Bangladesh and its effect on our poultry production. In future we expect to have
very strong and established distribution channels. All this things will be our future core
competency and it will be harder for any competition to acquire.

11

Facilities:
Chickens are territorial. They rarely roam far during the day, and they come back at night to
roost in a familiar place. Chickens need housing that keeps out predators and protects them
from inclement weather.
Location:
Gazipur is a very good place for starting an organic poultry farm and the location we have
selected for our farm has a history of being free of any chemicals. The land is huge and has
already got a substantial amount of grass on it. The soil of the land is suitable for organic
farming as it drains out all the water automatically. It is also great in terms of convenience since
everything thats necessary to make organic feed for the chicken is available nearby. Moreover,
this location is very close to the capital city of Bangladesh Dhaka.
Housing:
We have a huge space for the chickens to range freely and have exercise. We will construct
laying boxes, chicken coops and chicken pens for our poultry farm. Our coop will protect our
chickens from wind, rain and extreme temperatures as well as predators and parasites. This will
be a well-insulated facility with a light bulb or heat lamp for the winter months as well as
ventilation for fresh air. The allocated space for each chicken will be 2.5 square feet.
Sanitation:
An important element to chicken health is sanitation. In order to maintain a clean, healthy
environment, the coop and outdoor area will be cleaned out weekly. Feeders and water
providers will be regularly cleaned and disinfected. Dust baths will be available, as they help
control mites. At least once a year, a thorough cleaning will be done on the coop and yard. Also
cleaning will be done before introducing new birds to the area to limit the spread of disease.
During this cleaning, safety precautions will be taken in dealing with dust. Employees will wear
a dust mask while cleaning as inhalation of dried chicken manure can be harmful to humans.
12

Dust and cobwebs will be removed from corners of the coop. The inside of the coop will be
disinfected including troughs, perches and nests. To disinfect, one-tablespoon chlorine bleach
to one gallon boiling water will be used.
Equipments:
Very few types of equipment are required for organic poultry farms. The main purpose of
organic poultry farm is to provide chicken and chicken eggs in harmony with the nature. To
keep the process natural, very few equipments are used. Some basic equipments that will be
used are:

Biddie Drinker: The Bidde drinker is used for all chicks and the water level is adjustable. It is
very economical and reliable. Moreover, this drinker is very easy to clean and maintain.
Price: Tk. each

Round Drinker: Open water for all kinds of poultry. Different sizes are available depending
on the bird type and bird weight. These drinkers are usually installed in a suspended
position. Water level can be adjusted precisely with minimal labor.

Lubing Nipple Drinker: 360 degree nipple for vertical and horizontal activation ensures
optimum water intake even for day-old birds. Stainless steel housing for ultimate hygiene
and reliability. Provides sufficient water supply even for heavier poultry. Single-arm drip
cup style keeps the litter dry without inhibiting the birds from drinking.

Cyclone Feed Pan: The Cyclone pan feeding system is a broiler feeding system that
performs from start to finish. Pans are fixed on the tube to maintain optimum feed space all
around the pan. Cyclone intermediate control pans can be installed anywhere on the feed
line.

Male Pan Feeder: The correct feeding of males is very important for a high fertility rate.
Separately feeding males guarantees that all males receive the specified amount of feed.
One pan is sufficient for feeding 7 -9 males.

13

SILOS - external and internal silos including accessories for hygienic feed storage. External
and internal silos made from galvanized sheet steel, inside silos made of Trevira fabric
including accessories for hygienic feed storage.

Agrilight barn lighting: Maximum light spread of 24 metres wide, low installation &
maintenance costs and long lasting.

Bird Health Inspection:

Healthy birds will be active and alert with bright eyes. They will be moving around pecking,
scratching, and dusting except on hot days when they will find shade in our facility. Chickens
that are healthy and active will also talk and sing quietly throughout the day. As far as laying
and eating habits, each chicken is different, so each chicken will be monitored to get a feel for
her normal production and consumption. Healthy droppings will be firm and grayish brown,
with white urine salts. Roughly every tenth dropping is somewhat foamy, smellier than usual
and light brown. The easiest way to find disease in chickens is to know what a healthy bird looks
like so all our employees will be given some basic training so that they can understand and
identify if there is any problem. When a chicken isnt acting normal, for instance if she doesnt
run to the food as usual or she wheezes or sneezes, investigation will be started immediately.

Organic Feed:
It is very important for organic poultry farmers to ensure that the chickens are provided with
the right type of organic feed. Organic chickens cannot be fed the usual poultry feed (contains
synthetic substances) rather the feed has to be 100% organic. We feed our free-range organic
chickens a mix of clover, grass and minerals to keep them healthy and happy. Chickens at our
farm have access to vegetation. Our chicken feed contains crushed dried fish, oil cakes, oyster
shells, grains, wheat and mixed vitamins to produce a balanced, standardized combination of
ingredients. We will raise our chicken on pasture. This is the most natural diet chickens can eat.
As long as they have enough acreage or consistently fresh pasture (such as using a movable
coop to give them fresh ground daily or weekly), chickens can self-regulate and find enough
insects, bugs, weeds, grasses and seeds to stay healthy.

14

Production Process:
The production process is quite natural for organic chickens. With very little manual care and
maintenance the process can be completed. The production process differs for different
breeds. Every different types of chicken have to be taken care of differently. In general, at the
starting of the process, very young batch of chicks are bought and kept in a place where the
temperature and the ventilation can be controlled. The chicks are fed age appropriate organic
feed. For two to three weeks high level of nutrients (protein, energy, minerals and vitamins) are
provided to the chicks to enhance their health. These chicks do not have access to the outside
environment until the third week of their age. Roosters are taken care of separately. For every
ten hens a rooster is bought. This is the case only for egg producing chickens but for meat
producing chicken (broilers) do not need any male chickens.
After second or third week the type feed is changed with another type of age
appropriate organic feed. During this period all types of chicken are kept in movable coops and
have access to the outside environment for eight hours during the day. They are allowed to roam
through fields and pastures and to graze on the grass. During this eight hours they eat pastures (the
most natural diet) and find enough insects, bugs, weeds, grasses and seeds to keep them healthy.

They also get enough exercise which adds some extra flavor to their meat and eggs. At night the
chickens return to their respective coops to rest.
After 45 to 55 days the meat producing chickens (broilers) grow up to two to three
kilograms. These are then sold at more prices than conventional chickens. But the layers or
other egg producing chickens are kept until they no longer produce eggs. A fully matured layer
chicken can grow up to a maximum weight 4 kilograms. After this point the layers cannot
convert the feed into muscles so keeping them longer can incur loss.
Before bringing in a new batch of chicks the whole facility is cleaned and kept empty for
few days. This stops any spreading of diseases. A different section of the field is allocated for
the new batch and the previously used section of the field is kept untouched so that the grasses
can grow again and the field can come back to normal for reuse.

15

Research and Development (R&D):

Since we are just going to start the business we are not going to focus on R&D at all. Moreover,
the people of Bangladesh are not well aware about the concept of organic poultry farming. So
instead of investing in R&D, we can use that money for creating awareness among the target
consumers. In future we expect our business to grow big and eventually we will be introducing
hatchery to our business. Then we can start R&D to gain competitive advantage. We will work
on new types of organic feed to enhance the health and growth of our chickens. We can also
work on new types of organic breed that is tastier and grows faster than other breeds.

Marketing Plan
SALES
The first target of our sales and marketing will be the big departmental stores around Dhaka.
The departmental stores sell the frozen chickens and we will try to reach every departmental
stores in Dhaka. The availability of the product will have an impact on the sales. Then the fast
food shops as they search for big size and quality chickens. Then we will be taking orders from
the big convention centers or the community centers for supplying chickens for very high
profile ceremonies. In future we will start home delivery service at places like Banani, Gulshan,
Baridhara, Uttara, Bashundhara etc.
Distributions
The distribution channels need to be maintained perfectly to reach the desired customers. We
will try to reach every outlets present in the Dhaka city of the departmental stores. We will be
following direct distribution procedure, producer to the retailers. As it will be in the
introductory stage so we will be concerned about the availability of the product, as it grows the
popularity and the demand will make the retailers ask for the product.

16

Advertising
Advertising is a vital aspect of the marketing plan. Organic chickens are totally a new concept
among Bangladeshis, so we need to aware and educate people about it. There will be banners
about the organic chickens in front of every departmental stores. Basically we are going for
direct marketing strategy. We will send calendars, posters, catalogs and other attractive things
to our desired business to business target customers. We will send our representatives to
explain and convince them why should they sell organic chickens and how can they be
benefited by this.
Customer Service
At the very beginning of our business we wont be very focused on customer service. But
gradually we will increase our staffs and will provide superior customer services like home
delivery, dressing, cutting of chickens before delivery etc.
9. Human Resource Strategy
Key Issues:

Discrimination: No sort of discrimination will be done on the basis of gender, race, family
background or religion. People will be hired strictly on the basis of quality, skill and
experience. We will be very interested in a managing a diversified work force. Even though
there are no strict implications of any law against discrimination here in Bangladesh still our
internal code of contact will react immediately towards any kind of discrimination by
anyone within the business.

Sexual Harassment: It is one of the most important issues all over the world. People are
teased and harassed everywhere all over the world. This kind of behaviors decreases
employee motivation and satisfaction towards their job. We will show zero tolerance
towards this kind of behaviors and if the accused person is found to be guilty then that
person will be handed over to the police and will be subject to automatic expulsion from
the farm. Prevention is always better than the cure so every newly employed person will be
familiarized with our code of conduct during the orientation program.

17

Communication: Internal communication within the organization is priceless. Good

communication between the top and lower order employees increases the overall
productivity. We will communicate most of our company information with the employees
and as a result they will feel like a very important part of this business. Occasionally their
suggestions will be taken for improving the production process. Our organizational culture
will make them feel like partners of the farm.

Staff Requirement: The whole process of producing organic chicken and eggs is quite natural
but yet staffs will be needed for cleaning, maintenance, feeding and collecting eggs. Initially we
will have one coop (each containing 250 to 300 chickens) and room for very young chicks. So
four staffs will be hired two for each coops and two for the room for young chicks. A care
taker will be hired to look after all eight staffs and the night guard.

Structure: The structure is pretty simple. All the eight employees and the night guard will
answer to the caretaker and the caretaker will answer to the owner or top manager.
Chairperson & CFO
Tasneem Tazakka
Amin

Marketing
Manager Lokman
Hossain
Mozumder

Operations
Manager

Caretaker

Cleaner

Two Staffs

Night Guard

18

10. Financial Management Plan

Forecasted Income Statement
2013

2014

2015

2016

Sales

2577000

3092400

3710880

4453056

Less: cost of goods sold

-768444

-883711

1016268

1168708

Gross profit

1808556

2208689

2694612

3284348

Less: expenses
Salaries:
Caretaker

72000

72000

144000

144000

Employee

432000

432000

475200

475200

60000

60000

60000

60000

Water bill

120000

120000

120000

120000

Administration expense

120000

150000

180000

180000

Selling expense

20000

22000

24200

24200

Guards salary

48000

48000

52800

52800

Owners salary

300000

350000

400000

500000

Machinery

15000

15000

15000

15000

Furniture

5450

5450

5450

5450

Office equipment

3200

3200

3200

3200

20000

20000

20000

20000

Rent expense

300000

300000

300000

480000

Office rent

240000

240000

240000

384000

Vaccination expense

100000

100000

100000

100000

Electricity bill

Depreciation

coop

Net income before tax

Less: tax
Net Profit after tax

1855650

1937650

2139850

2563850

-47094

271039.4

554732

720498

-4709

27104

-55473

72050

-51803

243935

499259

648448

19

Forecasted Balance Sheet

2013

2014

2015

2016

Cash

415347

702932

1245841

1937939

Accounts receivable

257700

309240

371088

445306

Total current asset

1295239

1012172

1616929

2383245

200,000.00

187000

174000

161000

Less Accumulated depreciation

-13000

-13000

-13000

-13000

Furniture

74500

69050

63600

58150

Less Accumulated depreciation

-5450

-5450

-5450

-5450

102000

98800

95600

92400

-3200

-3200

-3200

-3200

Coup

200000

180000

160000

140000

Less Accumulated depreciation

-20000

-20000

-20000

-20000

534,850.00

493200

451550

409900

1207897

1090025

2068479

2793145

Accounts payable

515400

318480

742176

890611

Total current liability

515400

318480

742176

890611

Total liability

515400

318480

742176

890611

Net Asset

692497

693692

1326303

1902534

1000000

1000000

1000000

1000000

243935

499459

648448

1192132

1691591

2340039

1510612

2433767

3230650

Balance sheet as at 31st December 2014

TK

Current assets

Fixed Asset
Machinery

Office equipment
Less Accumulated depreciation

Total fixed asset

Total Asset
Current liabilities

Owners equity
Retained Earnings

Total liability plus owners equity

1515400

20

Cash Flow Statement

Operating cash flow

Net income
Add depreciation

2013

2104

2015

2016

-51803

243935

499259

648448

43650

43650

43650

43650

-51540

-61848

-74218

Increase in accounts
receivables

Net operating cash flow

-8153

Investing cash flow

Purchase ofMachinery

200000

Furniture

74500

21

196920

423696

39125

904757

617880

Coup

200000

equipment

102000

Net investing cash flow

-576500

-576500

1000000

415347 287585

542909

692098

415347

702932

1245841

702932

1245841

1937939

Financing cash flow

Owners capital

500000

Venture capital

500000

Net financing cash flow

Cash flow

End cash flow

Breakeven analysis

Variable costs= Administration expense+ utilities+Sellong

expense+vaccination
(60000+120000+120000+20000+100000) / 1700 units
247tk
Fixed cost=( 576500+240000+300000)/1700units
1116500
Revenue= 2577000/1700 units = 1516tk
Breakeven point= Fixed cost/(Revenue-Variable cost)
1116500/(1516-247)
880 chickens
22

Payback
Period

Year
2012
Initial Outlay

-576500

Cash Flow

2013

2014

2015

2016

415347

Payback period= 1 year+

702932 1245841 1937939

(161153/702932)

1.52 Years

Ratio Analysis
Current Ratio
Working capital ratio
Net Profit Margin
Gross Profit Margin

2013

2014

2015

2016

2.5

3.2

2.2

2.7

779839

693692

2.01%

7%

13.50%

14.60%

70.02%

71%

73%

74%

874753 1492634

Days Sales
Outstanding

37days

37days

37days

37days

Days Payable outstanding

73days

73days

73days

73days

Return on asset

-4.20%

22.30%

24.10%

23.20%

Return on equity

-5.10%

19.60%

33.30%

39.30%

23

Notes
Administration will rise be 30000
Selling expense will rise be 10%
In the year 2013 there will be 2 caretakers
Salary will rise by 10%
Rent will rise by 60% in 2016
Accounts receivable will be 10% of sales
Accounts payable will be 20%of sales
Layer chicks : 400*6*15*10=360000 first 6 months
after 6 months sell 400*150= 60000

Cost of good sold

Layers: 900*70*12
Broiler:

next 6 months 500*6*15*10= 450000

800*12*33
Cost of food:

Sell at 500*150= 75000

73644

Broiler chiken: 800*12*170= 1632000

1 caretaker = 6000*12
3*12000*12
5000*12
10000*12
10000*12
4000*12
3*100000

scrape value 50000 for 10 years

(machinery)

15000

scrape value 20000 for 10 years(furniture)

5450
24

scrape value 70000fpr 10 years

(equipment)

3200

Depreciation rate 10% (coup)

20000

5000 sq feet* 4tk/sq feet

(land)

43650

20000*12 (office)

Conclusion
Prevention is better than the cure. So instead of curing the diseases caused by eating
unhygienic things its better to eat healthy meal. Organic poultry farms provide people with
healthy chicken which is tastier and beneficial for health. We hope that our organic poultry
farm will be widely accepted by the people of Bangladesh. We have tried our best to create a
perfect business plan for this new idea and we hope for the best.

25

Reference:
1. http://www.bigdutchman.de/en/poultry-production/products/poultrygrowing.html?gclid=CPPLkK2prrkCFWJS4godzEcAhA
2. http://www.ehow.com/how_5758805_start-organic-chicken-farm.html
3. http://www.livestrong.com/article/178321-what-is-organic-chicken/
4. http://www.ausagservices.com.au/medicator.html
5. http://www.slideshare.net/drsreenathds/organic-poultry-farming
6. http://www1.extension.umn.edu/food/small-farms/livestock/poultry/backyard-chickenbasics/

26