Business Plan Commercial layer business in Bogor, Indonesia M Business Plan Commercial layer business in Bogor, Indonesia M. Baber Ahmadzai and Yuni Resti 27th May 2016

Farm Description Location  Bogor, Indonesia Farm Type  Semi - Intensive layer farming Farm Size (Total Area 4200 m2) Feeds / Fodder  Silo ( 35 Ton ) Buildings  1800 m2 (Layer housing, office, packaging room and staff quarters) Flock / Herd size  3 flocks, Total : 10.000 layers Product + Unique selling Point Egg + Omega3 Non-cage system for the animals

Market (Retailer in Bogor, and Trader in Jakarta FARMING SYSTEM DIAGRAM of Java Layer Farm BIO-PHYSICAL factors: Dry and rainy Seasons, 250C PRODUCTION FACTORS: Political – institutional factors : Government Policies, taxes, law HOUSEHOLD: Sustainable farming, Comercial layer farm, Animal husbandry education background LAND: Total Area 2500 m2 700 m2 above sea level WATER: Ground water; good quality CAPITAL: 3 layers housing, Silo, Pump machine, Scale, Feeder, Water Drinker, Incinerator LABOUR: 3 labours) : Total Salary € 5,400/year ENERGY: Electricity : € 5,000 / year INPUTS : Feeding: 309 tonnes/ year: € 154,550 , Pullets : 10,000 / year : € 32,143 Vaccination and drugs : € 5,000 / year SYSTEM COMPONENTS : ANIMAL: 10.000 layers per year PRODUCTS: Eggs (1,824 million) / year : € 325,714 / year Culling layers (9500 layes / year) : € 13,571 / year Manure (176 tonnes) / year : € 3,769 / year SALES Market (Retailer in Bogor, and Trader in Jakarta SALES

Chain Map of Java Layer Farm

Production Plan Units  3 Housing Unit Production planning Lohmann Brown Strain Production will start with pullets (16 weeks of age) and will be sold after 72 weeks of age

Marketing Plan Product  Omega 3 Eggs Price  1,1 euro / 6 Pcs of eggs People (consumer segment)  Upper Class Consumers Place (channel)  Supermarket, Hotel, processors (in Bogor), Trader in Jakarta Promotion  Website, brochure

Housing Buildings / unit 1800 m2 Non cage – single tiered system Housing size  1700 m2 Free range  1700 m2 Feeder  Feeding pan Water ad libitum water by using nipple drinkers Feeding Silo  15 m2 (Length 20 feet, diameter 12 feet) capacity 35 Ton Packaging room  50 m2 Office  30 m2 Staff or watchman quarters  20 m2 Manure pit Incinerator  80 Kg capacity   Environmental aspects Litters will be collected every day (Manure removal systems belts is placed)

Nutrition Feed stuffs Commercial feed + Omega 3 feed Feed rations (2% of sardines fish by product) + flaxseed, commercial feeding, Total feeding/layer/day  110 gram   Feed conversion FCR = 110 gram of feed = 2,2 50 gram of egg  “1 kg off eggs need 2,2 kg feeding”

Health Care / Recording Biosecurity Sanitation  Fumigation All in all out Vaccination Every 8 – 10 weeks : ND and IB in water Light management (16 hours per day) Temperature control Monthly pullets and laying flock records  Cost, Vaccinations, mortality, feeding used, egg produced (hen day, hen house), Hen removed

Farm Organisation Human Resources 3 People working in this farm Responsibilities Organogram Farm Manager Creating, monitoring, and operating the farm's budget  Monitoring and maintaining inventories of supplies Monitoring farm’s performance and quality standards Marketing the farm's product Providing customer service Farm Assistant: Cleaning the farm area Feeding the animals three times a day Recording the production daily, weekly, and monthly Collecting and handling the eggs at 6 am and 6 pm on daily basis Reporting to farm supervisor for any unusual incidence at farm

Financial Plan: Investment Budget Balance Sheet per May 2016 Assets Liabilities Fixed Assets   Fixed liabilities Land 75,000 Bank Loan 130,000 Housing 300,000 Staff or watchman quarters 1,429 Packaging room 3,571 Office 2,143 Silo 5,893 Feeder 9,000 Water drinker 350 Current liabilities Pump machine 471 Creditor 3,500 Water tank 1,571 Weighing Scales 79 Manure pit 1,250 Incinerator 157 Ofiice stuffs Current Assets Layers 14,286 Liquid Assets Own resources Bank Account 75,786 Net Capital 363,915 Cash 5,000 Gross Capital 497,415

Financial Plan : Trading account Year 1 (€) Year 2 (€) Year 3 (€) Number of Unit Unit Cost Total Fixed Costs 1 Electricity 45,000 Kwh 0.11 5,000 45,000 Kwh 0.13 6,000 2 Permanent labour 3 people * 12 months 150 5,400 180 6,480 3 Maintenance   11,699 4 Depreciation 14,725 5 Interest 7% 16,373 Total Amount per year (€) 53,197 55,277 Variable Costs Feeding 309,100 kg 0.5 154,550 363,000 kg 181,500 363,000 kg 0.6 207,429 Vaccination and drugs 1 package*10,000 Pullets 10,000 pullets 3.2 32,143 3.4 34,286 Miscellaneous 9,585 10,932 12,386 7,045 8,035 9,104 208,322 237,610 269,204 Gross Output Eggs 1,824,000 eggs 0.18 325,714 2,232,000 eggs 398,571 0.20 446,400 Culling Layers 9,500 culling layers 1.57 14,929 9,500 culling layes 1.64 15,607 Manure 175,890 kg 0.02 3,769 198,000 kg 4,243 198,000 kg 0.04 7,071 344,412 417,743 469,079 No Nett Farm Income Year 1 Year 2 Year 3 1 Gross Output 344,412 417,743 469,079 2 Variable Costs 208,322 237,610 269,204 3 Gross Margin 136,090 180,133 199,875 4 Fixed Costs 53,197 55,277 Nett Farm Income (€) 82,893 126,936 144,598

Sustainability profile People  Safe and healthy products, job opportunity Planet Manure for fertilizer and feeding for fish Profit Egg which content Omega 3 has more profit, profit from culling layer and manure

References Handbooks Magazines