BusinessDay

Investing in egg production

Animal protein consumption is very vital for human development.  The importance of animal protein in the food cannot be over-emphasized.   Protein helps in body building, growth and development of children in terms of bones, teeth and other reproductive parts.

Investing in table eggs production is seen as a contribution to the physical and mental development of Nigerians, will contribute positively to the productivity of Nigerians.

With the recent revitalisation of the Agricultural Credit Guarantee Scheme of the Central Bank, individual and corporate bodies can now have access to finance to fund this kind of scheme.  In this regard, funding of this project will not constitute any problem.

With the increasing awareness of Nigerians on the need to take at least one egg daily, the market for eggs is widening daily.  With a population of 190 million people, the market for eggs is rather un-imaginable.  Neighbouring West, East and Northern African Countries also depend on table eggs from Nigeria, as the weather for production of eggs is highly conducive in Nigeria compared to these neighbouring countries.

Not only this, inputs for production of animal feeds are readily available in Nigeria.  The market also has a huge export potential as Nigeria is the largest egg producing country in Africa with 10.3 billion eggs produced annually, data from the Poultry Association of Nigeria (PAN) shows.

 For persons or corporate bodies looking for a project that generates income on daily basis, egg production is one of such projects.

Eggs are used in preparation of foods such as ice-cream, bread, cakes, biscuits, noodles, and doughnuts. It can likewise be rehydrated to make dishes such as scrambled eggs and omelettes.

Eggs are picked on daily basis ready to be sold to waiting wholesale buyers or retailers who buy in crates.  Daily income generation business to a great extent stabilizes the economy of individuals, corporate bodies and the nation.

Under ideal situation, an average person should take at least one egg per day.  The project will to a very great extent improve the state of nutrition of Nigerians.

The relative energy and protein conversion of a unit of available meat is also highest for poultry.  It can therefore, be said that poultry production holds a unique position in bridging the protein supply gap whether in terms of rapid turnover or price of feed conversion.

The land requirement for a poultry projects is minimal.  This means that the project can be established with ease.  The project also gives room for flexibility.  That is, one can start from a small-scale production and graduate to large-scale.

With the introduction of vaccines and drugs, mortality rate in poultry has been reduced to the barest minimum. Creation of Agricultural Insurance Scheme has also reduced risks associated to poultry farming.  In this regard, poultry farming is now a secured business.  The fear of going into it has been removed entirely.

Technical Information

Egg production entails the procurement of day old chicks of layer birds.  These birds are kept in poultry shed and nurtured till it starts producing eggs daily. Birds’ domestication involves feeding with poultry feeds; water and keeping the farm clean through regular disposal of their wastes, disinfecting the pens and restriction of foreign bodies from entering into the pens.  The only key input in poultry farming is the feeds.

Farmers keeping more than 5,000 birds are always advised to have their mini feed mill so that they can compound their own ration on the farm.  This will reduce feeding costs and also assist the farmer to monitor what constitute the feeding ingredients.  It is also an additional source of income because one can be compounding feeds for other farmers.  Investors must always consult agricultural experts and consultants in the process of planning such project.

Financial Implication

Project Cost:    We are looking at the possibility of setting up a 5,000 per day egg laying farm.  The financial implication is listed as follows:

                                                                                                                       N

  1. Land and Buildings                           :                                5,000,000
  2. Laying Birds (point of lay)             :                                8,000,000
  3. Provision for Mini feed mill          :                                 2,000,000

4              Feeds Ingredients                           :                                2,000,000

  1. Project vehicle                                  :                                 1,500,000
  2. Utility/Others/cages                       :                                6,000,000

 Total                                                                                                     N24, 500,000

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The project cost may be lower or higher depending on the financial strength of the investor.  One can start with lower number of birds and then expand later.

The project will also definitely attract finance from the Commercial Agricultural Credit Scheme of Central Bank of Nigeria where individual or corporate bodies can be assisted from N10 million to N1 billion. Some commercial banks are also well disposed to this project.  Well-packaged feasibility study is a pre-requisite to sourcing of finance from this scheme.  This can be provided on request.

Profitability

Daily revenue of N120, 000 has been computed with operating costs put at N50, 000 on daily basis.  Monthly net income of N2.1 million is therefore achievable.  Serious minded Investors can be assisted in the realisation of the project right from inception to completion.  Olumakinde Oni:  08023058045, 08033660177.

OLUMAKINDE ONI

 

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