BANKABLE EMU FARMING PROJECT REPORT

PROJECT REPORT FOR  ESTABLISHMENT OF EMU BREEDING FARM WITH
 25 PAIR OF  TWO YEARS OLD EMU BIRDS TO PRODUCE FERTILE EGG FOR HATCHING

Emu is a large flightless bird of Australian  origin .Its scientific name is Dromaius novaehollandiae. There are five families of flightless birds they are Ostrich of Africa, Emu of Australia ,Rhea of south America, Casswory of New Guinea and Kiwi of New-zealand.. Out of the above species emu is the preferred bird for farming. virtually there is  no waste products in Emu. Every body part such as meat, eggs, fat, skin and feathers ,nail has economic value. These birds are highly suited  for farming in tropical climatic conditions. They have adopted very well to  climatic condition of our country. Adult mortality of this bird is very low almost negligible and productive life  is long. These birds are very docile and human friendly. Emu farming has high potential for employment generation. Before starting an farm the entrepreneurs/ farmers are advised to under go   training on emu farming. They can contact Local Animal Husbandry Department staffs/Veterinary College/agriculture university etc. for the purpose.  They should also visit emu farms  in the locality. They must check the following points before starting an Emu farm.

1-Availability of  emu breeding stock in nearby market

2- Nearness of  farm to  Veterinary Hospital, Animal disease diagnostic laboratory

3-Marketing facility of emu and emu products in local market

Back ended capital subsidy subject to a ceiling of Rs 3000000/- according to size( Rs7.5 Lakh  for  general category and 10 Lakhs SC/ST entrepreneurs and for  NE States including Sikkim is available for  this project. (for details visit our Poultry Venture Capital Fund  page).But grace period is only one year .Therefore repayment must start after one year of availing loan. Taking the above guideline  of PVCF into consideration it has been proposed to start emu breeding farm with two year old adult emu pair.

emu farm


PROJECT REPORT FOR  ESTABLISHMENT OF EMU BREEDING FARM WITH

 25 PAIR OF  TWO YEARS OLD EMU BIRDS TO PRODUCE FERTILE EGG FOR HATCHING 

This project report has been worked out subject to the following conditions:

  1. 25 pairs of emu birds (two years old) will be purchased for breeding purpose(sex ratio1:1)
  2. These birds must be free from disease and deformity
  3. Birds should be preferably purchased before beginning of breeding season of the year
  4.  Bio-security measure must be maintained in emu farm
  5. The scheme is workable on the above guidelines if run by the entrepreneur on scientific lines.    

Techno-Economic Norms

 

 

PARAMETERS

VALUE

Species

Emu

Flock size

25 pairs

Male female ratio

1:1

Age of birds at purchase

two years

Cost of bird pair at purchase

40000/pair

Cost of emu pair 10years old

60000/pair

Floor space required/bird

800 sq ft

No of eggs laid during by female bird during first year of laying (average)

10

No of eggs laid during by female bird during second  laying(average)

20 eggs/female

No of eggs laid during by female bird during third  laying (average)

30 eggs/female

No of eggs laid during by female bird during 4th   laying(average)

35eggs/female

Sale price of egg laid in first year of laying

Rs1000/per egg

Sale price of egg laid in second year

1200

Sale price of egg laid on 3rd year onwards

1300

Daily feed requirement per adult bird in first year

1Kg

Daily feed requirement per adult bird from

 second year onwards

1.1kg

Flushing ration

20% of feed cost

medicine vaccine etc.

Rs.20/bird/months

Cost of gunny bag

Rs10/bag

Construction period

2 months

Grace period

One year

Interest rate

12%/year

Repayment period

7 years


EMU EGG PRODUCTION CHART AND PRICE CHART

YEAR

  1.  
  1.  
  1.  
  1.  
  1.  
  1.  
  1.  
  1.  

No of adult emu maintained

25 pairs

25 pairs

25 pairs

25 pairs

25 pairs

25 pairs

25 pairs

25 pairs

NO OF EGGS PRODUCED

250

500

750

875

875

875

875

875

Price of egg

Year wise

1000/egg

1200/ egg

1200/ egg

1300/ egg

1300/ egg

1300/ egg

1300/ egg

1300/ egg

ECONOMICS OF EMU BREEDING FARM  WITH 25 PAIRS OF ADULT BIRDS

Sl no

Capital cost

(Amount in Rs.)

  1.  

Fencing of emu farm with 2x2inch chain link net for 800 ft boundary  7ft high fence  6 ft above and one foot below earth@ Rs12/Sq.ft

67200

  1.  

Night shelter shed 20 sq ft/bird @25 per sq.ft

25000

  1.  

Cost of two years old breeder emu @40000 per pair for 25pairs

1000000

  1.  

Equipments for 50 birds @Rs.50/bird                            

 

2500

  1.  

A bore well with pump set and electric connection

(45000+15000+5000)

 

65000

  1.  

Feed store 120sq.ft@250/sq.ft                                                        

30000

  1.  

Office room 12ftx12ft @250/sq.ft

36000

 

TOTAL CAPITAL COST

1225700

 

Working Capital

 

  1.  

Cost of concentrate feed for breeder birds for first six months 

@IKG/bird/day@16/kg (till income generation)

135000

  1.  

Salary of one labour for 6 months @3000/month

18000

  1.  

expenditure like medicine and veterinary aid etc @Rs20/bird/month for 6 months

6000

  1.  

Contingency

15300

  1.  

Total working capital

174300

 

  1.  

Total project cost

1400000

  1.  

Margin money 15% of project cost

210000

 

  1.  

Bank loan

1190000


Cash flow analysis

SLNO

YEAR

CASH FLOW

i

ii

iii

iv

v

vi

vii

  1.  

 Cost of feed  1kg/bird/day

In first year and1.10kg for second onwards

@16/Kg   

240000

321200

321200

321200

321200

321200

321200

  1.  

Flushing ration for breeding period of 6 months 20% of feed cost

24000

32120

32120

32120

32120

32120

32120

  1.  

 vaccine medicine  including veterinary aid

10000

12000

12000

12000

12000

12000

12000

  1.  

Labourer charge

30000

36000

36000

36000

36000

36000

36000

  1.  

Electricity & misc. expenditure

10000

12000

12000

12000

12000

12000

12000

  1.  

Total expenditure

314000

413320

413320

413320

413320

413320

413320

INCOME

 

a)  

Sale of eggs as per egg production chart

250000

600000

900000

1137500

1137500

1137500

1137500

b)  

Sale of gunny bags

3000

4100

4100

4100

4100

4100

4100

c)   

Value of building, fencing, bore well

(Depreciation @10%year)

 

 

 

 

 

 

59460

d)  

Depreciation on equipments @15%/year

 

 

 

 

 

 

Nil

e)   

Value of 50 breeding birds of 10 years of age @ 60000/pair

 

 

 

 

 

 

1500000

f)   

Total

253000

604100

904100

1141600

1141600

1141600

2701060

g)   

Gross profit

-61000

190780

490780

728280

728280

728280

2287740


Calculation of BCR & IRR

year

  1.  
  1.  
  1.  
  1.  
  1.  
  1.  
  1.  
  1.  

Capital cost

1225700

 

 

 

 

 

 

 

Recurring cost

324000

426320

426320

426320

426320

426320

426320

426320

Total Costs

1549700

426320

426320

426320

426320

426320

426320

426320

Benefit

253000

604100

904100

1141600

1141600

1141600

1141600

2701060

Net Benefit

-1296700

177780

477780

715280

715280

715280

715280

2274740


Repayment Schedule

Year

Loan Outstanding

Gross Surplus

Interest

@12%

Principal

Total Repayment

Surplus

1

1190000

-61000

142800

-

-

-

2

1332800

190780

159936

-

159936

30844

3

1332800

490780

159936

132800

292736

198044

4

1200000

728280

144000

250000

394000

334280

5

950000

728280

114000

250000

364000

364280

6

700000

728280

84000

300000

384000

344280

7

400000

2287740

48000

400000

448000

1839740