• Author / Uploaded
• dilshad.ba13

• Categories
• Ingresos
• Carne
• Impuestos
• Conejo
• Agricultura

Citation preview

“RABBITICIOUS- RABBIT FARMING BUSINESS”

Saira Kanwal Asma Talpur Shoaib Awan Darban Ali Shaoor Ahmed.

RABBITICIOUS- RABBIT FARMING BUSINESS”

1

 Executive Summary: We plan to rear Rabbits for their wool, fur and meat. Rabbit’s meat is nutritious and is considered better than other kinds of meat, it contains low cholesterol than chicken and turkey. And it is suitable for special diets, such as those for heart disease patients, diets for the aged, low sodium diets, weight reduction diets. Rabbits can reproduce 7 times in a year and can give birth to 50 kits on average, so they increase in number very quickly. We plan to start from Sukkur. The space required to build a rabbitry is quite small thus lower costs and since they reproduce very fast, there is always room for expansion. Market for Rabbits is mainly large Hotels and Restaurant. So they make our primary customers with that we also plan to open up an outlet. Animal husbandry is usually differentiated depending on the type of livestock one keeps since each animal has its own requirements. Rabbits have less requirements compared to other forms of livestock in relation to capital, operating costs and maintenance yet they have quick returns and high demand. There is great potential in this undertaking because of the increased life style change of most families towards healthy living. This is evidenced by the preference to white meat rather than red meat and increase in the demand for rabbit meat since it is the most nutritious of the white meats. This is a trend that shows future growth of the industry and thus increased future cash flows of early entrants to the industry. The opportunity is immense based of the change in trends in the market coupled the gap in the supply of the product. The financial aspect of this venture is favorable since there is a higher return on investment since expansion/growth is fast and the payback period is short. Cash flows will start to be realized after the first lot of kits mature which will be about six months. Expenses are minimal once the initial structure is properly established. Proper care should be practiced thus less funds on treating the bunnies white more on their feeding.

Vision Statement: We aim to bestow people with an increased living standard and a healthy living by providing highest percentages of proteins and nutrients in livestock.

Mission Statement: The mission of Rabbiticious is to serve the people by providing the healthiest possible food by nutritious white meat of rabbits. We aim to reach the national level with our cholesterol free meat. We believe our efforts to sustainably raise foods and products is the key to healthy families and a better planet. Using Organic, Natural and Permaculture Principles we strive to produce delicious and healthy rabbits.

Project Submitted to Sir Nabeel Nisar

RABBITICIOUS- RABBIT FARMING BUSINESS”

2

 Agribusiness History, Organizational Structure & Background: Industry Analysis: To meet the demands of growing population around the world, the micro livestock i.e. Rabbits are a great source of food production. There is a growing opportunity for rabbit farming in our country because of changing life styles of living and standards for survival. As Rabbit meat is considered white meat so it contains more proteins, vitamins and calcium than other species of animals. The rabbit meat is tasty and they grow very fast. Rabbits are long been enjoyed as food by people around the world. Rabbit meat is sold all over the world in fresh and frozen forms and enjoyed in different recipes. The annual meat production from rabbits stands at 200 million tons by some estimates however largest rabbit meat producing countries are china, Russia, Italy, France, Spain. Rabbit farming is relatively easy with great scope and profitability. Pakistan Agriculture Resource Council sources say farming provides an additional source of income.

Species of Rabbits: There are several species found in our country among those the most famous are Dark Grey. Others included Fox, Dutch, Chinchilla, NZ white, NZ black.

Rabbit Meat Quality: It has been found through researches that the male rabbit meat is tastier than female and young than adults. As age increase the lipid and cholesterol increase and proteins decrease. As in Pakistan now a days there is rapid growing demand of healthy foods so there seems an immense potential for growth of this rabbit farming industry. Moreover the changing trends and the supply of this nutritious food will create demand in the market.

Pestle Analyses: Pestle analysis is a powerful tool to visualize our external surroundings which enables us to understand external factors. Those factors are

Political and legal factor: Taxation law: If government imposes taxes on our business, we will get less revenue like other forming industries are also paying the taxes. Labor laws: We have to pay minimum salaries to the employees that is fixed by the government in order to follow the government policies. Political instability: Law and order situations also affects our business heavily due to the strikes in market we may generate less revenue. Political instability can affect our business negatively.

Project Submitted to Sir Nabeel Nisar

RABBITICIOUS- RABBIT FARMING BUSINESS”

3

Economic factors: Inflation rate: Inflation rate in Pakistan is 23.3% if the inflation increases it may also increase the price of our product and customer decision may be affected. Economic growth rate: The economic growth rate accelerate is 7% that can also affect the customer buying behavior.

Social and environmental factors: Health consciousness: people are more health conscious now a days and we offer them healthy meat that contains the quality and nutrition that creates the market for our product. Environment concerns: we will be providing the quality product and we care the health of customers and we are responsive towards nature and humans.

Technology forces: New products: We are providing the rabbit meat that is new in market, we also focus on changing the product according customers need. We also focus on the innovation of the product in future.

Porter’s Five Force Model 1. Competition in the industry: As our business will open this industry, hence yet there is not any competition in market. After new entrance there will be most probably price, quality and branding war between competitors. 2. Potential of new entrants into industry: Entering in this venture is quite easy therefore there is high threat for new entrance in market. 3. Power of suppliers: There are many supplier in different areas of Sindh for rabbit. They charge as per Quality and size of rabbit. Having many supplier will reduce the bargaining power of supplier and we will purchase at as low and cost high quality methodology to have less costly business. 4. Power of customers: Being the first and only Rabbit meat Provider in Market, the customer will be have very less bargaining power, Hence we would be having best opportunity to make more profits. 5. Threat of substitute products: Because of Rabbit meat own quality and nutrition’s the rabbit meat does not have any direct substitute though we are having indirect substitute including Beef, chicken and fish.

Project Submitted to Sir Nabeel Nisar

RABBITICIOUS- RABBIT FARMING BUSINESS”

4

 Product Mix: Product:

Health trends around the world lead consumers to opt for healthy and nutritious food. In Sukkur region Rabbiticious brings healthy & tasty rabbit meat and fur as a byproduct. This fresh, healthy and full of nutrients meat will provide unique taste to the customers. An outlet will directly sell the fresh meat to customers. Rabbiticious being only Rabbit meat provider in the region will earn its brand name through its quality and packaging. Price: Looking at the people of Sukkur price sensitive, Penetration Strategy will allow customers to have fresh and healthy rabbit meat at affordable cost. Meat (1kg): Rs.320 Chicken, beef and mutton being indirect competitors to our business low price fresh and healthy meat will give us an edge in market through penetration strategy. Placement: Our product is unique in market and not easily available at any retailer shop. An outlet at Sukkur city will entertain the demand of consumers. Outlet being at Sukkur will cover whole the city. And a daily home delivery will aim to cover Khairpur and side areas of Sukkur as well. Sales force will be there to promote and sell our product through personal selling mostly to the restaurants. Promotion:   

To aware the people about the rabbit meat, taste and its variety of dishes first week awareness campaign will be launched, providing the sample dishes free of cost. Restaurants being our major consumers direct selling will be used to sell meat at different restaurants. Internet is today’s major source to promote effectively and free of cost. Social media marketing would also be there.

Project Submitted to Sir Nabeel Nisar

RABBITICIOUS- RABBIT FARMING BUSINESS”

5

 The Market Served: Rabbit farming is an undertaking of agriculture industry, the biggest sector of economy. Rabbit farming is attractive for those who possess talent and passion for livestock farming. It’s not expensive venture rather require knowledge because of its nature. So, we five partners are going to initiate Rabbit farming business in Sukkur for the first time. We will provide meat to restaurants, industries and also open an outlet “Rabbiticious” to meet the demands of customers. It is a partnership business.

Rabbits need less requirements as compared to other livestock in capital, operating costs and maintenance. Rabbits are prolific in nature that is grow very fast thus creating high returns. Most families now want healthy life style of living thus there is potential for increased demand of rabbit meat because evidences provide the fact that it is preferred over red meat. Since it’s considered the most nutritious of white meats. However, trend also shows future growth of the industry thus more future cash flows. The opportunities based on the changing trends are thus immense in the market.

Rabbit meat is considered nutritious because it contains less cholesterol, fat and sodium as compared to other meats with high calcium, proteins, and vitamins. So Rabbit farming business is great source to meet the food and protein demand.

People raise rabbits as pets but raising them commercially is a great source of income. Thus rabbits are small sized animals so commercial way is easy. The method that we will apply in our rabbit farming is cage method that is best for commercial business to raise maximum number of rabbits keeping necessary facilities and space in the cage.

Project Submitted to Sir Nabeel Nisar

RABBITICIOUS- RABBIT FARMING BUSINESS”

6

 Competitive Factors: The market for rabbit meat is large but the problem is its supply is very low. Though the increasing demand is showing that there is still growth in market making it profitable venture. However Strength, weaknesses, opportunities and threats of business are below mentioned in SWOT ANALYSIS CHART:

STRENGTH:       

Infrastructure Low initial capital of starting business Limited startup risk Limited competition in Area Very high gross margins that is with less investment high returns White meat for healthy life style. Stable & trained staff for customer service

OPPORTUNITIES:  

   

Continued expansion for future growth High potential in Rabbit meat due to growing demand in white meat as a result of changing lifestyles and a higher purchasing power. Increasing prices of other meat products Ability to open Restaurant Opportunity to diversify rabbit products Existence of industries that make rabbit industry products from its skin.

Project Submitted to Sir Nabeel Nisar

WEAKNESS:  

Limited flexibility in pricing Lack of familiarity and awareness among consumers about rabbit meat consumption.

THREATS:  

Competition such as with fish and chicken sellers. Cultural and religious beliefs that prejudice against consumption of rabbit meat.

RABBITICIOUS- RABBIT FARMING BUSINESS”

7



Marketing Goals and Objectives:

This is the process by which we shall communicate the value of our product to the customers for the purpose of selling the product and increasing our profits after production is stable and stock of rabbits is enough for commercial purpose. We will do for the first week of our business Awareness Campaign that is selling direct meat to the customers free of cost and secondly we will do direct selling to restaurants and finally of course marketing through most favorable INTERNET promotional activities.

 Operational Characteristics: Initially we will purchase 200 rabbits out of which 100 will be for restaurants and outlet and other will be for Breeding purpose so that they increase we earn profits out of it. Breeding and feeding will be done by feeder however proper record will be managed by the manager and for security purpose we have a security guard also. We have outlet and warehouse on rent and land on lease. For storage purpose warehouse will be used.

 Management Features and Financial projections:

Project Economics: Following table shows about the returns, payback period of project and net present value. Description: Internal rate of Return: Payback Period: Net Present Value:

Details

Project Financing: Following table shows the details about equity and loan for project financing. Description Total Equity 60%

Project Submitted to Sir Nabeel Nisar

Details 1017272.4

RABBITICIOUS- RABBIT FARMING BUSINESS”

8

Bank loan 40% Markup: Tenure

678181.6 12% 5 years

Project Cost: Following table shows the cost estimates and operations of the business. Capital Investment Infrastructure(Cages Purchased) Outlet Equipment Pre Operational Costs Total Fixed Capital Inventory(Rabbits Purchased) Outlet Rent &wages Land Lease Cash Total Working Capital Total Project Cost

Amount 140000 150000 127454 417454 40000 888000 250000 100000 1278000 1695454

Space Requirement: Total space required for the rabbit farming is 300 sq. feet. Description Construction of 14 cages Outlet & warehouse Rent Land Lease Total

Cost per unit 10000

Area sq. feet 14

Total cost 140000

20000

240000

20833

250000 630000

Machinery and Equipment: Total machinery and equipment required for the rabbit farm and outlet are given below: Description Outlet furniture and fixture Deep Freezers Total

Project Submitted to Sir Nabeel Nisar

Amount 30000 50000 80,000

RABBITICIOUS- RABBIT FARMING BUSINESS”

9

Human Resource Management: Description Manager Caretaker Butcher Security guard Total

No. of employees 1 1 1 1

Monthly salary 12000 12000 12000 10000

Total Monthly salary 12000 12000 12000 10000 54000

Raw Material Required: Rabbits Total feed required per Rabbit Vaccination / Medication Direct Electricity Cost Total

Total Unit 200 3217 3217 3217

Rate Rs./ Unit 400 per pair 60 2

Amount in year 40,000 193020 6434 98000 337454

Revenue Generation Product Rabbit weight)

Sales Price First year Total Sales Revenue Rs. / kg production ( having 2 kg 320 3217 2,058,880

Total Sales Revenue

Project Submitted to Sir Nabeel Nisar

2,058,880

RABBITICIOUS- RABBIT FARMING BUSINESS”

10

Financial Analysis: Profit & Loss Statement:

Revenue Cost of Goods Sold Gross Profit General administration & selling expenses Administration expense Travelling & Comm. expense (phone, fax, etc.) Office expenses (stationary, etc.) Outlet Rent Land Lease Miscellaneous expense Sub Total Operating Income Earnings Before Interest & Taxes Interest Expense Earning before Tax Tax Net Profit / Loss After Tax

Project Submitted to Sir Nabeel Nisar

Year-1 2,058,880 9,85,454 1073426

125,000 35080 2640 250000 250000 15000 677720 395706 395706 81380 314326 47148 267178

Year-2

Year-3

RABBITICIOUS- RABBIT FARMING BUSINESS”

11

Project Submitted to Sir Nabeel Nisar