Product Description: In general poultry refers to all domestic birds of fowls; but in this project profile it refers only to chicken. Chicken are most popular, widely raised and consumed birds in Ethiopia. Hence the major purpose of poultry production in the country is for food as meat and egg. In commercial poultry production system broiler meat is marketed in the form of live birds, whole dressed, portions such as leg quarter, thighs, whole breast, drumsticks, etc, which may be polybagged or tray packed depending on the requirements of the customers. Two kinds of eggs are also supplied to the market; i.e. table eggs for direct consumption and hatchery eggs for further rearing.
Rationale: Poultry production practice in the Amhara Region is a traditional type; just as a backyard business in which producer's rear small number of domestic birds. Production is, basically for home consumption, with a small percentage and seasonal marketable surplus. According to the livestock sample survey of 2005/06, the Amhara Region had 9.40 million poultry population which accounts for 29.2% of the national flock. The marketable surplus is only 20% of the region flock whereas mortality rate is over 60% and the balance is consumed at home.
Urban population in the region is estimate 2,195,000 and relating this figure with the marketable surplus of poultry in the Region, poultry meat consumption level is less than one bird per person per year. This is extremely low by any standard. The low level of marketable surplus is constrained by a host of factors. Traditional producers raised their own stocks which are low p-productive, they take 12 months to gain 1 kg weight whereas improved breeds gain 1 kg body weight in 2 months time. The local breeds give 20-30 eggs per layer per year and the improved breeds gain 200-280 eggs per layer per year. In addition to this in the traditional production system mortality rate is very high due to high incidence of diseases and predator as there is no provision of housing. Birds are properly fed, left to scavenge for food, no provision of veterinary services. There is no differentiation between layer and broiler breeds. As a result poultry production is low. On the other hand urban population is increasing at the rate of 4.25% per year. With the current unsatisfied demand population increase will create addition pressure on poultry meat and egg supply. Hence it is timely to encourage investment in the poultries.
Market Potential: Base on statistical Abstract of 2005, total regional population is estimated at 19.12 million of which 12% resides in urban centers. The urban population of the region is growing at more than 4% per year. On the other hand poultry population in the regions is estimate at 9.40 million of which only 20% marketable which indicates a consumption level of less than one bird per person per year.
As indicated in table 1 below, demand for Birds and eggs increased from 8.9 million to 12.9 million and from 35.6 million to 51.8 million from the year 2001 to 2010, respectively.
Table 1
Demand Projection for Birds and Eggs in Amhara Region
Producers in the region raise local birds which are low productive and will never catch up with the growing demand of urban population. The urban population growth rate will also create additional demand which will justify the development of commercial poultry production at Bahir Dar and other major zonal capital cities.
Source of Raw Materials:- Day-old chicks for both layers and broilers' breeds have to be imported from well recognized breeding stock sources. In commercial poultry production feed is the most important variable cost component accounting fort 75-80 percent of th4e production cost. The basic components of feed are maize, Soya bean and oil cakes which can easily be produced and supplied to the poultry industries within the region.
Production Process and Technology: Poultry houses are designed for growing pullet (egg layers), broilers (birds of meat) parent stock (birds for breeding) and each cage house is equipped with automatic feeders, drinkers, controlled heating and light system where temperature and humidity are controlled. Day-old chicks are vaccinated and the same day delivered to their respective cage house by an environmentally controlled delivery van. Chicks are carefully brooded and fed until they reach their respective production stages layers will start egg-laying in 20 weeks time. Eggs will be collected, stacked in trays and stored for sale. Broilers will gain marketable body weight in 45 days time ready for sale live or dressed.
Investment Cost Estimate:- Commercial poultry production systems are characterized by large scale production using specialized and mechanized facilities and less labor intensive. Therefore, investment in land acquisition (about 10 ha), building and civil works, plant and machinery, vehicle and transport equipment purchase will require in the range of Birr 20-30 million depending on the size and capacity of the farm plus and initial working capital of 5-6 million Birr should be established.
Benefits: Poultry meat and eggs are relatively cheep but healthy animal protein sources. Because productivity of poultry birds per unit of is very high, its contribution to the food self sufficiency effort will be great. The industry is highly profitable as long as it secures cheap supply of row materials. It will reward the investor in the form of profit and generate income for the regional Government in terms of income tax and VAT. It will also generate employment opportunity in the region.
Location: Appropriate sizes of poultry farm could be established in Bahir Dare, Gondare, Deber Markos, Woldia, Combolcha and Dessie.