Table Content

1. Project Background and History …………………………………... 2

2. Market and Demand analysis …………………………………........ 4

3. Technical analysis …………………………………........................... 8

4. Location and site selection …………………………………............ 30

5. Environmental Impact Assessment ………………………………. 31

6. Human Resources …………………………………........................... 34

7. Socio-Economic Analysis …………………………………............. 35

8. Financial analysis …………………………………............................ 36

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 1. Project Background and History
In Ethiopia chickens are the most widespread and almost every rural family owns chickens, which
provide a valuable source of family protein and income. The total chicken population in the
country is estimated to be 56.5 million with native chicken representing 96.9%, hybrid chicken
0.54% and exotic breeds 2.56% (CSA, 2014). The most dominant chicken types reared in
Ethiopia are local ecotypes, which show a large variation in body position, plumage color, comb
type and productivity (Halima, 2007). However, the economic contribution of the sector is not
still proportional to the huge chicken numbers, attributed to the presence of many productions,
reproduction and infrastructural constraints.

The chicken production system in Ethiopia can be characterized by not market oriented, low
input, scavenging and traditional management system consisting of local breeds . The indigenous
birds are small in body size and low producers of meat and egg. For example, the productivity of
scavenging hens is 40-60 small-sized eggs/bird/year. The total chicken egg and meat production
in Ethiopia is estimated to be about 78,000 and 72,300 metric tonnes, respectively.

The most dominant (75%) chicken production system in Amhara region is free range /scavenging
type/ using a majority (95.8%) of local chicken ecotypes, with only seasonal feed
supplementation, scavenging only (2.5%), scavenging with regular feed supplementation
(21.9%) and intensive production system (0.63%). The most dominant (82.9%) chicken
production system in Bure district was scavenging type using a majority (96.8%) of local chicken
ecotypes, with only seasonal feed supplementation.

Similar to the national system, the major proportion of chicken production (98%) in Amhara
National Regional State (ANRS) is a traditional sector, at small holder level, from which almost
the whole annual meat and egg production is produced.

According to the recent agricultural census study, the total chicken population of the region is
estimated to be 14.44 million, accounting to 33.3% of the national chicken population, and kept
for both eggs and meat production purposes.

Despite the large population and the great role of chicken both to the livelihood of resource poor
farmers and to the national economy at large, the current level of on-farm productivity in the
smallholder production system is low due to various factors such as biological, social, economical
and institutional factors. On the other hand, the modern poultry production system is very small

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in size and confined to urban and peri-urban areas and contributes less than 2% of eggs and meat
production in the country.

One and the major suggested solution to increase the production and productivity of chicken is
utilization of chicken production system which is modern, market oriented and compatible with
the existing situation of the farming system. Therefore, by minimizing the production constraints
through use of selected and productive poultry breed as well as improvement of the production
system (feeds and feeding, housing, health, etc), it is possible to supply chicken products for the
market demand over the household consumption. That is manual shows better poultry production
in the region.

Chicken production and consumption provide different functions for the producer as compared to the
other livestock production. Among the different functions, the following are the main ones:

• Immediate source of cash income

• Provides meat and egg for household consumption
• Contributes for food security and creates employment
• Source of organic fertilizer
• Requires low initial capital investment, small land and low labor input
• Efficient feed converters and have a wide range of adaptability for different agroecologies
• Their product is acceptable by most of the community and the meat and eggs contain special
proteins that allow children to grow strong and their brain to develop
The reports of Halima et al. indicate that village chicken is raised in northwest Ethiopia for
various purposes and the first purpose (51%) of production of village chicken is sale for cash
income.

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 2. Market and Demand analysis
As we know, Ethiopia is an over populated country. Therefore, there is no equilibrium between demand
and supply and more or less suppliers fail to satisfy the customers. Most of all, in food business if it is
daily product, there is no loss unless you became careless on your business. As we all know that, chicken
and egg are very nutritious food items. Doctors always prescribe it as nutritious food. Most of all children
are fond of egg. So, there is a great prospect to being succeeded as being act as manufacturer of poultry.
We will distribute our product to household customers, restaurant, hotel, bakery, cookeries. So, there is
a great prospect being succeeded. Each and every people need chickens and eggs. Eggs are the
ingredients of cake, bread, omelet etc. So, restaurant, bakery, hotel, community centers need eggs and
chickens every day as the different customers has high demand of chickens and eggs we have a high
prospect of success, and for success we need continuous market research by following way:

1.1. Target Market

The farming company focus, first, operates on the regional market as well as on the export
market. In this sector, market is very competitive. The key competitors are distributing chicken and eggs
are regional competitors. The company has to compete with them. The demand of chicken and eggs is
very comprehensive. As the demand is very high but the sufficient suppliers are not present there. As a
result, the price of chicken and eggs are increasing day by day. So, there is great opportunity of earning
high profit with less effort. A number of prospective customer groups will be our principal target markets.
The type of marketing required to effectively connect to the various groups will vary, and these differences
will be noted.

✓ Individuals; this group will be comprised of the population at large, and can only be effectively approached
through mass media marketing.

✓ Retailers; a very important target market in so far as this represents the best way to sell product to most
members of the general population. Potentially, this target market group could represent the largest sales
volumes. Establishing agreements with retailers will require direct sales approaches, coupled to the
offering of sales commissions.

✓ Hotels; this is a very prestigious customer group that would lend excellent credibility to our product lines.
Establishing supply agreements with hotels will require direct sales approaches, coupled to the offering
of pricing discounts.

✓ Restaurants; a potentially lucrative target market in the long-term harmony poultry eventually produces
and distributes high quality poultry production. Establishing supply agreements with restaurants will
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 require direct sales approaches, coupled to the development of new, specialty product.

✓ Large Businesses, Commercial Complexes, Government Offices; this will quickly become the largest
target market group in terms of sales volumes. It is important to highlight the fact that these are
establishments with money, they have a lot of workers, and they have a vested interest in protecting /
preserving the health of their workforces.

Establishing supply agreements with these customers will require direct sales approaches to key decision
makers.

1.2. Marketing strategy

We dedicated to building long-term relationships with customers through quality products and customer
support. The best way to achieve this, and the basis of the company’s initial marketing focus, therefore, is
to promote the benefits for the home and office of buying our products. Secondarily, promotional
messaging should also play up the fact that we are Ethiopia -based company by putting a small Ethiopia
flag logo on the packet would help achieve this. Finally, the company will adopt creative and aggressive
tactics to exclusively position its product into key target markets. For instance, by offering low pricing
and / or promotional supports to a particular high-profile retailer will ensure that and the other marketing
strategy we used

✓ We use new processing options which can differentiate our product from the products of others.

✓ We ensure quality product with affordable price.

✓ We always search for new quality factors related to our products that customers wish to see in the product.

✓ Provide hygienic and nutritious feeding that may help to attain distinguishable quality factors like color
and test of meat.

✓ We will sell our product direct to customer.

1.3. Analyze competitors

It is essential for every business organization to identify its existing competitors their skill, strength and
as well as weakness. We have huge number of existing competitors but most of them have not high skill
and less mechanized but we produce in mechanized and we try to use as much as possible modern
equipment to our farm. The future competitors can easily entre the business because of its low cost and its
industry structure is very easy.

1.4. Pricing

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 We will consider this factor securely; our farm will provide chicken and eggs with affordable price. Pricing
is the most important factor for this business to compete with competitors to sustain in in the market. Our
pricing method is simple. We only sale product with a limited profit that means our sales price are our
cost- plus limited profit. We will maintain pricing on its Products that will always tend to be at, or
below the prices charged by other poultry producer serving the Ethiopian marketplace. Other elements of
the company’s pricing strategy will include:

✓ Maintain pricing consistency over the year so as to tell customers that our farm is a stable entity that is
fully committed to its products.

✓ Offer pricing discounts for those customers willing to commit to taking delivery of large volumes on a
continuing, long-term basis. This will translate into a major cost savings for large volume customers, and
will induce them to stay loyal.

✓ By maintaining an ultra-competitive pricing regimen, potential newcomers to the Ethiopia marketplace

will be dissuaded from selling their poultry products.

✓ We also offer different types of prices and product discount in different types of festival. We also provide
price discount on a bulk amount of product.

1.5. Distribution Channel

We will use personal sales representative for selling our product. Our sales representatives will directly
go to our customers or some whole seller and retailer using the car of the corporation and they collect the
order from those customers who are buying our products those customers might be hotels and other
lodges/restaurants so they can order when they want through mail and we will distribute. As per their
order, we will directly supply chickens and eggs to the customers by our own transportation.

In Ethiopia the distribution channel is listed below.

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So we want to sell our product Direct to Customer this will help us to know the market deeply and to get
feedback about our product directly from the customer.

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 3. Technical analysis
Points to be considered during ration formulation are nutrient requirement of chicken, feed
ingredients availability and type, its nutritive value & price and daily feed intake of the chicken.

Main factors that determine the daily feed intake of the chicken are the amount of energy in the
ration, weather condition, health and management condition of the chicken and feed quality.

Starter, grower and layer diets

If the production is based on improved breeds for egg production, different types of commercial
diets may be given. The diet of chicken is divided into three distinct categories with decreasing
amount of protein as starter/chick, grower and layer diet. The ration formulated for chicks
should contain more protein nutrient until age of 8 weeks (0-8 weeks). The ration can be
produced or obtained from chicken multiplication centers, private feed producers and in the
locality. It should contain enough amount of the nutrient protein since it affects the growth and
reproductive performance of the starter. The ration formulation for the different categories of
chicken is presented below (Table 2).

Table 2. Ration formulation for starter, grower and layer

Ingredient Starter (%) Grower (%) Layer (%)

Maize 45.9 52.9 50.4

Wheat bran 7.5 7.5 7.5

Dried and grounded trifolium 2 2 2

Grounded bone and meat 4 4 4

Noug seed cake 37 30 30

Limestone 1 1 4.5

Grounded bone 2 2 1

Salt 0.35 0.35 0.35

Vitamin & mineral mix 0.25 0.25 0.25

Chicken ration formulated by feed win software using different ingredients

Noug seed cake 10 10 10

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Maize 45 60 55

Wheat bran 10 10 10

brewery dried grain 3 5 5

Soya bean meal 12 3 8

Salt 0.5 0.5 0.5

Alfalfa 3 0.5 1

Limestone 1.5 2 3.5

Sesame cake 15 9 7

Factors affecting feed intake of chicken

There are many factors which affect feed intake of chickens and hence determine nutrient
intake level and efficiency of chicken production.

Flock size: In studies on laying hens, feed consumed per bird was less in large than in small
flocks for the overall production cycle. Feed conversion for egg production also improved with
size of flock. This was probably due to better management by owners of large flocks, thereby
avoiding unnecessary wastage of feed.

Stocking rate: Feed intake and efficiency in broiler chickens were adversely affected by high
stocking rate (30-40 kg/m2) compared to moderate stocking (24 kg/m2) even under conditions
of sufficient feeder space. The effect of stocking rate and feed utilisation could be attributed
mainly to the restricted access to the feed, increased heat stress, increased ammonia level, and
prevalence of pathologies. Much of these effects could, however, be alleviated with proper
ventilation and other management and feeding practices.

Temperature: High temperatures have the most striking effects on feed intake, particularly at
the post-brooding stage. This relationship may be described by the following equation:
ME=1690-2.1T: where “ME” is the metabolisable energy and “T” is the ambient temperature.

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Feed and water factors: From the time the chicks arrive on the farm, they should have
immediate access to clean, fresh feed and water which are essential to maximise the genetic
potential and take advantage of the modern chicks voracious appetite.

Physical form of feed: Pelleting feeds usually results in increased density and intake of the
ration, and also improves growth and feed efficiency. It has been estimated that 0.01 in feed
conversions is lost with each 10% increase in ‘fines’ in pelleted feeds. Although pellet quality
may appear adequate immediately after leaving the feed mill, pellet quality at the time the flock
is consuming the feed in the house is what counts. Every effort should, therefore, be directed
toward improving the quality of pellets that arrive in the feed trough for broiler.

Anti-nutritional factors: Some feed ingredients such as raw soybeans contain a number of
unknown factors which inhibit pancreatic trypsin activity and inhibit digestion of the dietary
proteins. Therefore, chickens fed raw soybeans often exhibit low intake and reduced feed
efficiency.

Water supply: Water intake is correlated with feed intake and thus any decrease in water
consumption due to failure in the water supply or lack of watering space would result in
decreased consumption of feed to a varying extent, depending on the age of the chickens and
the degree of water restriction.

Feather cover: Some hens lose their feathers over large parts of their body due to feather
pecking, poor beak trimming, abrasion, and/or moulting. As a result, there is a decline in their
natural heat insulation and increase in heat loss from the bird. This aspect is more pronounced
with poor feather cover on the neck and back, since these parts are more exposed to the
environment compared to the breast or the legs. In this case, there is an increase in feed intake
to compensate for the amount of feed energy lost as heat, coupled with low egg production and
poor feed efficiency, expressed as the amount of feed per dozen of eggs.

Feed intake of layers can be increased through providing feed at the proper time of the day
particularly at early in the morning & late afternoon, stirring the feed frequently with your hand

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 2-3 times per a day, providing cool & fresh water 2-3 times/day, make the feed wet to make the
feed less dusty, providing pelleted feed and through feeding high energy diets.

Chicken production equipment’s

For successfulness of chicken production based on the production type and standard, it is
advisable to use suitable and selected production equipments. The different equipments used in
the chicken house differ according to the chicken age, breed and productivity status. The major
production equipments used in chicken house are the following.

Feeders

Feeders are the same, whether being used in free-range, semi intensive systems or intensive
systems. They should always be kept clean to prevent spread of diseases and big enough for all
chickens of the same age to feed at the same time. One metre trough or a 35 cm (diameter) tube
feeder is big enough for 20 adult chickens to eat. It is important that the feeders are constructed
in such a way that feed waste is avoided. Also feed waste can be decreased if feeders are not
filled to the top. It is better to fill feeders just half full and then check them regularly for refills.
Commercial feeders may also be bought at the market, either in metal or plastic. They are often
expensive and normally not any better than locally produced feeders. The feeders can be made
from locally available materials in different shapes like long, round feeders and can be made up
of wooden, tin can, metal, plastic, etc (Figure 11). The type and number of feeders to be
prepared should consider the age and productivity of the chicken (Table 3).

Characteristics of good feeders:

• Avoid wastage of feed, prevent contamination of feed
• Easy to clean, durable &strong and easy to fill and cheap

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Figure Feeders made from locally available material
Drinker

Drinkers are the same, whether being used in free-range, semi intensive systems or intensive
systems. They should always be kept clean to prevent spread of diseases, big enough for all
birds of the same age to drink at the same time and easily be produced out of local materials
(Figure 12). One metre trough or a 35 cm (diameter) tube drinker is big enough for 40 chickens
to drink. An empty tin can placed upside down on a plate forms an excellent drinker.
Commercial drinkers may also be bought at the market, either in metal or plastic.

The type and number of drinkers to be prepared should consider the age (chick, grower and
layer) and productivity of the chicken (Table 3). The drinker should be always cleaned, dried at
least twice a day and sprayed with disinfectant chemicals once a week after properly cleaned.

Characteristics of good quality drinkers:

• Can give enough, clean and fresh water
• Strong, durable and stable
• Easy to clean and fill
• No splashes of water and cheap

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Figure Drinkers made from locally available material

Laying nests

Provide nests in the hen house for laying makes it easier to collect eggs and they can be kept
clean (Figure 13). There should be adaptation period of the hen for the laying nest before start
of laying eggs which is important to prevent the hen not to lay their eggs outside the laying
nest. If you mark the eggs properly, you will know which eggs are new and should be collected.
You may avoid dirty and cracked eggs, if the eggs are collected twice a day.

Collect eggs at the same time every day in the morning and the evening. Removing eggs
continuously is important if you want to avoid that the hens become broody.

In many villages, nests are not provided for the hens and eventually the hens will lay their eggs
on the ground, in high grass or in natural shelters, where it may be difficult to find. Some
chicken farmers build nests on the ground outside the chicken houses. This should be avoided,
as eggs outside houses are more exposed to predators and thieves. Nests should be placed inside

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the chicken house and preferably above the ground. For laying you may have a battery of nests
where more hens can lay at a time. Nests should be of the right size for the hen to feel
comfortable. The size and length as well as the number of compartments of the laying nest to be
prepared should consider the number of hens. A nest box will typically measure 30 x 30 x 30
cm. The laying nest prepared by this size is enough for 5 layers. It is advisable to place the
laying nests in the dark part of the house to prevent exposure to the sun. Don’t make them too
big, as the hen will not feel comfortable. A calabash or nest basket may measure 40 x 20 x 25
cm (upper diameter x height x lower diameter). A clay pot is made more or less the same as
calabash.

To avoid the number of eggs laid by hens on the ground and loss of product, we have to
consider the following points:

• Place enough nest and introduce nests one week before onset of lay
• Collect ground eggs many times a day and use a comfortable nest
• Don't feed when the hens are on the nest
• Avoid dark corners in the house and do not collect the first eggs
• Divide the nests uniformly over the house and place nests on a wind free place

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 Figure Laying nests made from locally available material
Table . Feeding space, watering space, housing space and laying nest requirements for chickens
at different ages

Feeding and watering space requirement in cm/bird

Feeder/ Chicks Layer growers Broilers Layers Breeders
Drinker type 0-8 weeks 8-18 weeks
Long feeder 7 9 5 12 18
Round feeder 3 4 2 5 7
Long drinker 1.5 2 1 2.5 3.5
Round drinker 1.5 2 1 2.5 3.5
Housing space requirement (number of birds in 1m2)
Housing type
Full slats 15 7 -
2/3 slats, 1/3 litter - 6 4
1/2 slats, ½ litter - 5 -
Full litter 10 4 3
Laying nests requirement
Types of nests
Individual nest (hens/nest) 7 5
Communal nests (hens/m2) 50-75 30-50

Chicken house importance and construction

Housing is essential to protect against predators, thieves, rough weather (rain, sun, very cold
winds, dropping night temperatures) & to provide shelter for egg laying and broody hens. A
suitable or comfortable chicken house is also important for efficient production and
convenience of the chicken farmer.

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Preconditions before chicken house construction

• The site should not be swampy

• The soil should be water absorbent
• The site should have access to transport, water, electricity and other infrastructures
• It should be far from homesteads
• It is preferable where there is trees in the surrounding which serve as wind break and as a
shade
• The site should be good for future expansion.

Once the site has been selected, the chicken house can be constructed in different type and
quality. The house to be constructed should fulfil the following points.

Comfortable for the chicken: it should provide for the chicken enough space, well ventilated,
allow entrance of light and should not be wet. These make the chicken productive and free from
diseases.

Protect the chicken from unfavourable weather conditions and predators: It should protect the
chicken from predators such as rat, wild predator birds etc; parasites; theft and from
unfavourable weather conditions such as rain, wind, etc.

Cares to be taken for chicken house

• It should be cleaned properly

• If there were other stock before, all the old stock and the different waste materials should
be culled, removed, cleaned properly and left free at least for 15 days.
• The floor and wall of the house should be cleaned properly and sprayed with pesticides
such as formalin.
• Before introduction of the poultry, the floor should be deep with 5-10 cm thickness litter
(hay, straw, sow dust, etc).
• Feeders, drinkers and other poultry house equipments should be placed in a proper place.

Chicken house types

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Depending on availability of materials, weather and tradition, there are different types of
chicken houses and shelters in tropical regions. Choice of chicken house should be built upon a
rationale involving an estimate of the costs, durability, and immediate gain of using a house for
chicken. Even though there are different types of chicken house around the world, the main
ones are five types. These are:

All side open chicken house

All the open side is closed with sieve wire to protect the chicken from theft and different
predators. It is mainly common in hot areas and should be constructed far (at least 50m) from
other chicken houses. The open side should be in the wind direction to remove the unwanted
smell and should have guard which allow to protect the rain dropping and wind.

One side open chicken house

This type of chicken house construction differs from all side open house in that there is only
one side open. It is preferred in areas where the daily temperature is 15-30co. The height of the
house should not be greater than 9 m.

Chicken house with guard

The house has guard in two sides which allow controlling the temperature and the openness of
the guard should be 1-1.5 m in hot areas and 0.3-0.6 m in cold areas. The guard should be
closed from the lower to the higher/top to prevent the effect of coldness on the chicken.

All side closed chicken house

This type of chicken house construction is important to control the effect of extreme hot and
cold weather conditions on the chicken. It is suitable for areas which are very cold and very hot
weather conditions. The majority of the different activities, such as control of internal
temperature, in this type of chicken house are accomplished by mechanical way.

House with deep pit

This type of chicken house is suitable for layers reared in cage or open slated system and the
waste material from the layer/chicken is collected in the deep pit for several years (5-10 years).
The objective is by collecting and mixing of the waste material to minimize its wetness (to
make it dry). Since there will be flies, rats and smell of the waste material in the surrounding
particularly during the wet season it will create a problem on the work.

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Internal chicken house arrangement

Even though there are different chicken house arrangement types around the world, the main
are deep litter system, half litter and half slated floor, full slated floor and cage system (Figure 9
and 10).

Figure Deep litter system

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Figure Cage system

Litter
Importance of litter include (Figure 14):
• Provide comfort and heat for the chicks
• Make the house dry by absorbing the waste material excreted from the chicken
• It creates unfavourable condition for breeding disease causing organisms Materials used
for litter include:
• Dried grass/hay
• Wood by product/sow dust
• Cereal straw (teff straw, wheat straw, barley straw, etc) Coffee plant byproducts, etc.
Cares to be taken:
• Should be clean, dry and not change its colour
• the litter should be deep/littered three days before entrance of the chicken
• the litter should be sprayed properly with disinfectant chemical (like formalin) weekly to
prevent bred of the pests
• The litter should be 5-10 cm thick

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 • The wasted litters should be replaced by new litter always

Figure Litter made from locally available material

Qualities of good litter material:

• It should readily absorb moisture
• Should not cause injury to birds
• Moisture level should be less than 15%
• Should get decomposed and form good manure
• Should spread evenly
• Should be non-toxic
• Should not cause dust pollution

Major chicken diseases and prevention methods

. What is disease?

It is any abnormality which disturb daily movement/activity of an animal by injuring either

internal or external part of the body. If an animal's normal activity/movement is disturbed or
decreased by injuring all of either the internal or the external part of the body that animal is
called diseased/sick animal. Particularly when chicken disease occurs in one area once, it can

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transmit fast and disturb the production process through death of many chicken which intern
cause high economical loss as well as the farm to be closed.

Identification of healthy and unhealthy chicken

It is very important for the farmer to learn how to detect an unhealthy or sick bird. So he can
initiate the right action. You will find the main characteristics of healthy and unhealthy birds.
Healthy birds may be able to fight against the diseases themselves whereas unhealthy birds will
have difficulties in fighting diseases. It is important to isolate unhealthy or sick birds from the
healthy flock in order to ensure a minimum of loss. Characteristics of healthy and unhealthy
chicken is mentioned as follows.

Healthy chicken (Figure 15):

• Externally they are clean and alert
• Have normal position head and neck
• Well to move and walk freely
• Have strong leg and normal voice
• Have bright eyes and comb
• Eat and drink normally
• Lay eggs normally and have smooth and neat feathers
• Soft and compact droppings
• Breathe quietly

Unhealthy chicken
• Heavy head and close their eyes
• Tired and lifeless
• dull eyes and comb
• Sit or lie down
• Eat and drink less
• Lay less or stop laying eggs
• Ruffled and loose feathers
• Wet droppings with blood or worms
• Diarrhoea, cough, sneeze and breathe noisily, drooping wings
• Body parts mainly around anus there is waste material
• Unable to move and abnormal voice
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Figure Healthy chickens

Causes of chicken disease

Causes of chicken disease are divided as living and non living agents. From this perspective,
chicken disease causing agents are three types. These are germs & microorganisms, parasitic
worms & pests and inappropriate nutrition.

Major chicken diseases

According to the disease causing agent and based on the attacking ability of the disease,
chicken diseases are classified as acute and chronic disease.

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 ➢ Acute disease
The majority of the disease causing agent enter to the body of the animal and multiply
immediately. After this time the disease start fast and ends within short period of time. The
diseased animal can die or survive.

➢ Chronic disease
Small number of disease causing agent enter to the body of the animal. Through progress they
multiply and make the animal injured for a long period of time and finally it can cause death of
the animal.

On the other hand, based on the nature of causative agents chicken diseases are classified as
follows.

Protozoan chicken diseases

The most common economically important protozoan chicken diseases include coccidiosis etc.

A. Coccidiosis
Coccidiosis is one of the chicken protozoan diseases which affect chicken at all ages and
mainly attacks chicks at age of 3 - 6 months. It affects mainly the intestine and is one of the
fatal chicken diseases.

Ways of transmission
➢ Through diseased chicken and by drinking contaminated water & by feeding spoiled feed
➢ When there is moist condition in and around the chicken house and their day shelter which
creates favourable condition for the microorganism to multiply.
Prevention
The disease can be prevented by regular and careful cleaning of troughs and chicken houses.

Symptoms
➢ Sick, tired, head down, ruffled feathers, bloody diarrhoea
➢ Death in young chicks
➢ If the chicks survive, they will remain thin and be late in egg laying
Treatment
Anti-coccidial in drinking water or feed, e.g. provision of Amprolium drug
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Prevention
➢ Do not keep too many chickens together, avoid different age groups of chickens in the
same house as the disease may spread from adults to young chicks
➢ Cleaning of drinkers and feeders with soap, prevent moist conditions in and around the
chicken house and their daily shelter

Bacterial chicken diseases

A. Salmonellosis
The disease affects chicken at all ages. The causative agent is the unobservable bacteria
salmonella spp.

Ways of transmission
➢ From the mother to the egg, if the egg shell is contaminated with waste of diseased chicken
➢ Through water or feed contaminated with waste of diseased chicken and through incubator
which is contaminated with the disease
Symptoms
➢ lack of appetite, eye blindness, the faeces is thin and white
➢ The diseased chicken will die within some days, the recovered diseased chicken are carrier
and the egg they lay is contaminated by the germ and the chicks are carrier
➢ Increase body temperature in older hens, weakness, anaemic, inactive, whiteness of the
comb and wattles and white faeces with green colour

Treatment
Treatment of the diseased chicken is not supportable because they are carrier, provision of
antibiotic to reduce mortality but it cannot be cured at all.

Prevention
Smoking of the equipments used for different purposes and the egg with antimicrobial drugs,
culling of the diseased carrier chicken.

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B. Pasteurellosis
It a communicable chicken disease which suddenly cause high pain and lead to death within
short period of time. Mostly it attacks chicken above 6 weeks age. The causative agent is
bacteria.

Ways of transmission
➢ The diseased and carrier chicken by contaminating the feed, water, air & soil transmitting
the disease to healthy chickens
➢ Putting of the dead chickens anywhere and transmitted to other areas by carnivores animals
like dog
Symptoms
➢ Lack of appetite, inactiveness, their faeces is yellow colour with green and white diarrhoea
➢ Pink colour of the comb, sleepy, discharge from mouth and nose, neck round and swelling
of front joint parts
Treatment
Provision of antibiotics through injection or with feed
Prevention
Culling of the diseased chickens, burning of dead chickens and provision of drugs

Viral chicken diseases

The common economically important viral chicken diseases are the following.

A. Fowl pox
This viral disease is often seen in young chicks, but also in adults. It is contagious and occurs in
sub-acute form. The disease causing agent is virus. The disease is common during dry seasons,
but may be found year round.

Transmission ways
Contact of the diseased and healthy chickens through skin damage, snacking pests, equipments
contaminated with diseased poultry and through cannibalism.

Symptoms
• Shows as pocks (small lumps) on wattles, comb and face, high body temperature

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 • Tiredness followed by sudden death, presence of injuries or swellings in different shapes
on body parts
• There is no feather around eye, head, mouth and leg, occurrence of black swellings
• Injury is around eye and head area, discharge from the mouth and eye dropping
• Small white swellings on the higher feed track and breathing part
• Because of the injury, they are unable to breath properly
• Lower appetite, lower weight and egg production, the chicken takes 3 - 4 weeks to recover
from the disease
Treatment
Since the disease is viral, there is no treatment. Vaccine is available and highly effective. To
prevent expansion of the injury, it should be treated with antimicrobial drug with water or feed.

Prevention: Provision of fowl fox vaccine by injecting on the feather

B. Newcastle disease (NCD)
The disease is very common during dry seasons and is often seen in young chicks but
also in adults.

Ways of transmission
Breathing in waste from diseased chicken, contaminated water and feed

Ways of transmission
The disease can be communicable from one area to the other in different ways.
• Purchase/gift and introducing/mixing diseased chicken to healthy chickens
• In the nearby of carrier wild birds, due to carnivore animals like dog, cat, etc
• Contact with human being and vehicles, by wind/air
• Utilization of equipments of diseased chickens for healthy chickens
The causative agent is virus and it can be seen from 3 perspectives:
Dangerous: This type of disease causing virus is causes high damage on the intestine and nerve
system which result high mortality rate

Medium: - This one cause medium damage/injury on the breathing organs and nervous system
which result small mortality rate. In addition it brings a decrease of egg production.

Lower/simple: - This type of disease causing virus cause little damage on the breathing organs
which result in mortality in chicks.

Symptoms
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It varies with the disease tolerance ability, age of chicken, intensity and type of the virus.
• Sudden death (if mortality rate 50 - 100%), weakness of the egg shell and decrease of egg
production
• Abnormal breathing, inactiveness and loss of appetite, green diarrhoea, discharge from the
mouth and nose, injury of the nervous system, weakness of wing and leg
• Neck round, swelling on face and neck area, lose appetite and have poor digestion, show
heavy breathing, greenish droppings, and sometimes bloody diarrhoea
• Show nervous symptoms, paralysis and die suddenly, and the symptoms may occur all at
the same time
NCD prevention vaccination
The vaccine is prepared to make weak in different ways the action of the living disease causing
virus and to motivate the immune system of the animal. Once huge amount of the vaccine is
produced, allow drying the vaccine in very cold conditions and then after the produced vaccine
will be packed with bottle in different doses.

NCD vaccine storage and service period

The vaccine should be stored and managed properly as it contains living germ otherwise the
germ will die and make the vaccine unable to create immune. The vaccine should not be
stored/exposed to hot and sunny areas. If the vaccine is stored at +4 oC room temperature, it can
be utilized for 6 months and if, at -20 oC room temperature for 2 years.

Types of Newcastle vaccine

Thermo-unstable vaccine: This type of Newcastle vaccine requires cooling equipment like
icebox to transport from one area to another and to store for further utilization. Otherwise it will
expire. Example: HB-1, LaSota

Thermostable vaccine: - On the other hand this type of Newcastle vaccine does not require
cooling equipment like icebox to transport from one area to other and to store for further
utilization. One example of this type of vaccine is I2 Thermostable vaccine.

The importance/advantage of I2 Thermostable vaccine are:

• Easily manageable by farmers and utilizable mainly in rural areas where there is no electricity
and animal health clinics
• Because of easiness for utilization, the community will have sustainable vaccination service
through selected and trained vaccinators in the locality

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Vaccination preconditions and cares to be taken
• If it is provided with drinking water, the chicken should be given enough amount of drinking
water at least for 2 hours before vaccination
• The waterer should be free from any chemical contact and should not be made of iron material
rather from clean plastic material
• It should not be given for diseased/sick and weak chickens
• The vaccine which is expired should not be used Vaccination syringes and droppers
➢ Should be cleaned properly both before and after utilization
➢ Do not use antimicrobial drugs to clean the materials
➢ After proper cleaning of the materials, it should be stored after packed with clean and
dried clothes
• The vaccination should be provided in morning where the weather condition is cold
• The left vaccine should not be used in the future rather it should be removed
• The vaccination should be used based on the guideline of the producer company

C. Gumboro disease (Infectious Bursal Disease, IBD)

The disease introduce to our country in associated with introduction of improved commercial
chicken breeds. It makes the chicken to lose their immune and to be exposed easily to different
diseases. Only seen in chicks younger than 6 weeks and normally only in large flocks kept in
confinement. Not common in small-scale village based systems.

The disease causing agent is virus and attacks white/disease protecting blood cells. Once it
enters to the internal body part of the chicken, it multiplies outside the body part around bursa
of Fabricius.

Common symptom
• Diarrhea, occurrence of swelling or reducing the size of bursa
• When the bursa swells, it becomes red, contain water
• Under skin it seems splashed with blood, sudden death of the chicks
Prevention
The disease is viral, so there is no treatment. Vaccine is available. Wash successively with
chemicals, removal of the dead chickens, prevent entrance of human being and animals to the
farm, prevent introduction of purchased chickens.

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Feed related chicken diseases

The chicken produces the expected product only if they have got balanced ration. During ration
formulation it should contain the different nutrients like energy, protein, minerals, vitamins, etc.
Otherwise the product will be reduced. Lack of adequate nutrition/balanced ration exposes the
chicken to different diseases.

Common symptoms
• Bone deformation and feather loss, walk with difficulty, they limp
• Legs will be deformed, some deficiencies may cause feather loss
Treatment
• If detected in time supplementary vitamins and calcium and fresh grass
• Nutritional diseases may be avoided when the chickens have access to normal vegetation and
are therefore rare in scavenging chickens
Prevention
Provision of different feed sources like cereals, legumes, limestone, bones, etc. Make sure that
the ration formulated should contain the nutrient the chickens require.

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 4. Location and site selection
We plan to start by renting 250m2 land In jemo 2.

25m

❖ Chicken Home
In our poultry we decide to use Cage system.
Cage system are housing systems which are mostly used for chicken rearing and suitable for several
methods of animal production.

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 5. Environmental Impact Assessment
Environmental impact Assessment proclamation No.299/2002
The law provides under its Article 3/3 and 5/1/2 that every project that falls in the category listed in any
directive issue (directive No 1/2008 issued to determine projects subject to EIA) shall be subject EIA as
guided by environmental protection agency (EOA). The proclamation prohibits any development to be
initiated without securing an environment clearance Article 7 requires the project. In compliance to this
requirement EthioChicken decided to commission an EIA for chicken feed milling and processing
factory.

Environment Pollution Control Proclamation 300/2002

The proclamation prevents any party from polluting the environment by controlling and disposal.
Disposal of any hazardous waste without a permit from the authority or the regional environmental
agency stratify prohibited. The collection important preparation storage distribution transportation and
use of hazardous chemicals or radioactive materials shall be subjected to a permit from EPA (article 4).

Solid waste management proclamation No. 513/2008

The law prescribes management of each type of waste stream to ensure environmental suitability and
enhanced public health. The stipulated management action plan for each waste streams are to be
implemented at the lowest administrative units and community must participate. Construction permit
shall be issued only when the contractor deposits a legally valid bond to ensure sound management of
the construction wastes (article 12/2).

According to this regulation our project meet the minimum requirement of the government regulation

Packaging
The primary purpose of packaging for products is to maintain the stability of micronutrients and to
protect the integrity of the composition. Improperly packaged products experience considerable loss in
the potency of various sensitive ingredients. Selection or designing of packaging material should be
according to the local climatic conditions. It should bear following properties:

I. Provides barrier against light, moisture, oxygen

II. No chemical interactions with the products

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 III. Provides good printing surface

IV. Sturdy enough to withstand the transport pressure.

The different types of packaging materials that could be use are glass containers, aluminum foil, paper
and plastics. Ideally, aluminum foil lined multilayered paper bags provides an excellent barrier against
light, moisture, oxygen, odor and flavor. Hence for very sensitive ingredients and where cost is not a
constraint, aluminum foil package is the material of choice.

Labeling
Label should have following information: name of the products, composition, net weight in the package
(in kg), regulatory/statutory statements, date of manufacture in month/year, date of expiry in month/year,
batch number, storage conditions, directions for use, name and address of the manufacturer with logo,
and disclaimer note if any careful attention must be paid while preparing label since the customer
follows the instructions given on the label. Any mistake made will be carried on to the feed and
ultimately affect the performance of the chicken.

Storage
The quality of feeds is also affected by the storage conditions in the premises until it is transported
through distribution channels. The following steps are recommended during warehouse storage:

1. The temperature and humidity of warehouse should be controlled below critical levels.

2. Keep the area clean, well lit and ventilated with fresh air.

3. Store the premix on the pallet meant for it taking care not to store more than 10 bags on each pallet.

4. Design the storage areas to facilitate the FIFO (First in First Out) policy, with bags stored in
consecutive order so that oldest can be withdrawn first.

Environmental Impacts of the Project

Potential Positive Environmental Impacts Among other benefits, the project is to:

a) Makes job opportunity for 6 people which generate income directly.

b) Can create opportunity for the community or population to expose to modern gardening, and
recreation activities.
c) Contributes to the realization of the development strategy particularly in the area of life-standard
facilities improvements.
d) Earns considerable profit to the proponent as well as to the city administration through tax.

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Negative Impacts of the project Potential Adverse Impacts on the Physical Environment and Mitigation
Measures
Depending on the EIA general principles, project type, specific conditions of the project area and project
needs, proper environmental mitigation measures were recommended for each identified adverse
significant environmental impacts as the result of the Feed Mill Production Plant project. Moreover, the
water, soil, air and other environmental issues were not affected by the project Feed Mill production plant,
but it has a negative impact on the storage processes as we discussed the above in titled with storage.

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 6. Human Resources

Our company will start by the shareholders as an employee and we will hire 2 unskilled employees. All
employees have common vision and goals to achieve their objectives. Their objectives are accompanied
their knowledge together to stand the business on its feet the business also created job opportunities for
9 employees. The corporation hired both skilled and unskilled employees in permanent and contract
basis to run the business. The management team also strongly believes that the success of a business will
depend on ability, qualification, experience and hardworking of its worker so that the corporation is wise
in selecting their employees with the objective of the right person at the right position. Chart of business
organization is briefly described below.

Employees Q UP TC
1 General manager and human 1 5000 5000
resource
2 Production Manager 1 6000 6000

Subordinate 2 2000 4000

5 General
Security 1 2000 2000
service
Janitor 1 2000 2000
6 finance worker 1 3000 3000

Total per month 7 - 22,000

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 7. Socio-Economic Analysis
Importance of poultry in household economy: income, nutrition and food security

❖ Poultry provides an important source of income for the poor households.

❖ Poultry products also offer affordable quality animal protein sources for the smallholder farm
households
❖ rural households consume a very limited quantity of poultry products since they rank cash
income as the primary purpose of village chicken production
❖ Chickens are consumed mostly during holidays
❖ In general, poultry consumption accounts for less than
1% of the total annual food needs of farm households

Poultry and rural livelihoods (Cont…)

• The Socio-Cultural Role of poultry
❖ Poultry has not only economic functions in terms of income or food but also important
socio-cultural advantages in the society
❖ Chickens have special values during holidays for the preparation of the famous Ethiopian
traditional dish, i.e. dorowot.
❖ chickens comprise the welcome feast for visitors;
❖ chickens are a source of food for women post-birth; chickens are payment to villagers for
local health services;
❖ chickens are gifts to newly married couples; and
❖ chickens strengthen social networks between women
❖ the spiritual benefit of sacrifice of indigenous chicken types has also an important place in
the cultural, social and religious functions of the Ethiopian society

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 8. Financial analysis
Startup cost
Serial. No Types of equipment Quantity Unit price Total cost
1 Cage 10 12,000 120,000
2 Office equipment 9 - 150,000
3 Land rent 1 15,000 180,000
4 Rent Car 1 3000/month 36,000/year
5 Chiken 1200 300 410,000
Total - - - 896,000

Predetermined unit and total cost

Item Days(d) Q UC TC
Feeding 30 1200 54 64,800

11 month 1200 594 712,800

Total feeding expense of the year 1200 648 777,600

Total

Term= 1 year or 12 month

The number of 30 days per term=0.12*30=3.6 KG feed per single chicken= 0.12

Price per 0.12 KG=1.8*30(days)=54

Sale forecast for the fiscal year of 2015 and 2016

Item Type of sales Time Q UP TR
Sales from first
term Egg 1th cage 98 8.75*90 77,175
2th cage 98 8.75*90 77,175
3th cage 98 8.75*90 77,175
4th cage 98 8.75*90 77,175
5th cage 98 8.75*90 77,175
6th cage 98 8.75*90 77,175
7th cage 98 8.75*90 77,175
8th cage 98 8.75*90 77,175
9th cage 98 8.75*90 77,175
10th cage 98 8.75*90 77,175
Total Sales 771,750 Br

Egg 1th cage 98 9.25*90 81,585

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Sales for next 2th cage 98 9.25*90 81,585
second term 3th cage 98 9.25*90 81,585
4th cage 98 9.25*90 81,585
5th cage 98 9.25*90 81,585
6th cage 98 9.25*90 81,585
7th cage 98 9.25*90 81,585
8th cage 98 9.25*90 81,585
9th cage 98 9.25*90 81,585
10th cage 98 9.25*90 81,585
TTotal Sales 815,850 Br

Sales for next Egg 1th cage 98 7.75*90 68,355

third term 2th cage 98 7.75*90 68,355
3th cage 98 7.75*90 68,355
4th cage 98 7.75*90 68,355
5th cage 98 7.75*90 68,355
6th cage 98 7.75*90 68,355
7th cage 98 7.75*90 68,355
8th cage 98 7.75*90 68,355
9th cage 98 7.75*90 68,355
10th cage 98 7.75*90 68,355
Total Sales 683,350 Br
Sales for next fourth Egg 1th cage 98 9.50*90 83,790
term 2th cage 98 9.50*90 83,790
3th cage 98 9.50*90 83,790
4th cage 98 9.50*90 83,790
5th cage 98 9.50*90 83,790
6th cage 98 9.50*90 83,790
7th cage 98 9.50*90 83,790
8th cage 98 9.50*90 83,790
9th cage 98 9.50*90 83,790
10th cage 98 9.50*90 83,790
Total Sales 837,900 Br
Total Sales of The 3,108,850
year

Projected income statement

Selam Poultry

Projected Income statement

For the year 2015

1st half year 2nd half year

Sales 1,587,600 1,521,250

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 Operating expense

Feed 388,800 388,800

Salary 132,000 132,000

Depreciation 38,000 28,000

Miscellaneous 48,000 32,000

Total expense 606,800 580,000

Earning before interest and tax 980,800 941,250

Tax amount 980,800*30% 941,250*30%

Net income/lose 686,560 Br 658,875 Br

*30% of income tax

Projected balance sheet

Selam Poultry
Projected Balance Sheet
For the year 2015
Asset Liability
Cash 2,656,105 Salary payable 264,000
Equipment 210,000 Income tax payable 571,335
Prepaid Rent (car & 216,000 Total liability 835,335
land)
Accumulated (66,000) Owner Equity
Depreciation
Retained Earning 1,345,435
Total Asset 3,016,105 3,016,105

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