What Is A 52 Week High In The Stock Market Investing in Poultry Farming in Uganda

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Investing in Poultry Farming in Uganda

So you wish to have to do industry in Uganda by means of making an investment in rooster farming with “Mavi ya kuku”?

First of all It’s not that i am persecuting any individual like Col. Kahinda Otafire of Uganda is his, I’d name them “famous words” together with the phrases “Mavi ya Kuku”. For the uneducated, “Mavi ya kuku” is a Swahili phrase for rooster droppings and while you battle a rooster it’s important to get actually deep in rooster s%*t (actually) however I’ll inform you about it. cash makers later. I provide my financial research of the poultry sector in Uganda.


1. Many so-called “poultry experts”

The benefit of poultry farming is that virtually each and every Ugandan is aware of one thing about it; oh the opposite factor, virtually any “Kampala man” who went to his village for Christmas can obtain a present of rooster and the ones of you who’re “traditional men” know that you’re on my own at house. one is eligible to consume “big chicken”. The “Big Rooster” is a gizzard and is typically given to the top of the home or extra continuously to a unique visitor (typically a male) as an indication of admire and a unique welcome to the home.

Ugandans know all this as a result of rooster is the most important a part of the DNA of Ugandan existence. However, having virtually everybody find out about some form of poultry farming may also be a possible purchaser’s worst enemy particularly if you wish to do industry. You see when “Tom, Dick and Oryem” every declare to have abilities in poultry farming, maximum of them have poultry farming which isn’t the similar as business farming, the aim of this text.

For instance, Ugandan chickens produce handiest 40 eggs in step with 12 months (a couple of egg per thirty days!)

If you do not to find the suitable individual and come to a decision to hear “Tom, Dick and Amerit” everybody, the following factor all of your belongings has been burnt up by means of coccidiosis.

2. Poor marketplace efficiency and distribution

Uganda continues to be a part of the “localized local retail” sector of rooster/poultry. For instance, chances are you’ll want to promote eggs at a grocery store or in neighboring cities as a result of there will not be “supermarkets” or “all-in-ones” that supply a in a position marketplace for the produce, so chances are you’ll want to depend on distributors. coming from a long way away. This in itself ends up in extortion of costs from those dealers. These barriers are as a result of there may be lately no formal strategy to distribute your produce from the poultry farm (principally in Northern and Eastern Uganda) to the marketplace (principally in Central Uganda). Also our transportation isn’t neatly evolved bearing in mind the situation of the roads. So you wish to have to determine a marketplace and distribute your produce once imaginable as a result of this may have an effect on your profitability.

3. The price of meals

Poultry feed is almost certainly one of the vital components in making your poultry industry winning. It is estimated that they eat between 60 and 70% of the whole manufacturing price. You want to remember to get the most efficient feed as a result of this implies you’re going to have a wholesome rooster (and just right eggs).

Food construction may be very tough in Uganda and in contemporary information (August and October 2011) many Ugandan rooster farmers have misplaced their jobs so ahead of making an investment, you will have to imagine this very moderately. This top meals worth is pushed by means of the upward push in the cost of maize. Maize makes up about 52% of rooster feed. Coupled with top maize costs is the truth that fish in Uganda seems to be in fast decline (about 10-20% of rooster feed).

4. Diseases

I touched in this in short once I spoke previous about coccidiosis. There are different rooster sicknesses corresponding to New Castle illness that may wipe out entire chickens. However I didn’t put this possibility above CONS as a result of an excellent entrepreneur will rent a just right and a professional farm supervisor to keep away from the hazards of illness and feature get entry to to a just right vet/physician and this will have to cut back this danger.

5. Cost of cash

Raising sustainable chickens calls for some huge cash particularly because it takes about 17 weeks for hens to start out laying eggs so there is not any cash right now. The dealer should supply operating capital all the way through this era of roughly 4 months ahead of any cost can also be anticipated. These working prices come with the elemental price of rooster feed.

From my estimation (I can get to that later) you’re going to want about Shs 26m as start-up capital for a 1000 rooster farm (shaver brown selection). I can maintain the main points of this segment beneath.

AND NOW Goodness

1. The chickens are right here

Chicken has been round for a very long time and in evolved international locations rooster is inexpensive than red meat. These adjustments are true in Uganda and rooster is continuously reserved for particular days (like once I handed my P.7 PLE examination and were given admitted to my first selection faculty). In Uganda, this will likely alternate particularly as our inhabitants grows and extra other people upward thrust out of poverty. Recent research display that we have got larger egg intake by means of 28% and rooster intake by means of 60% between 2000 and 2006.

Ugandan ladies love Chicken (and chips)! [This last statement is “tongue in cheek” in reference to the fact that many a Ugandan man seeking to impress a girl, perhaps a Univeristy student will often buy her Chips and Chicken from the many “takeaways”in urban areas especially around Kampala and its suburbs including the popular takeways in Wandegeya which is in the proximity of Makerere University.]

I will additionally be expecting that because the inhabitants of East Africa will increase and we attempt to combine the areas, there’ll nonetheless be a requirement for eggs and poultry.

2. Excellent monetary efficiency

Despite a number of problems associated with the price of rooster feed which can be hindering the trade, I imagine that this sector of the industry nonetheless provides the most efficient go back on funding. From my research beneath, it has a benefit of one.09 years! I’ve indexed my readings beneath. These figures are in accordance with a hard and fast price of 1000 gadgets of shaver brown. All figures are in Uganda Shillings. The change price for November 2011 is roughly I USD = Shs 2,700

Summary 1: Basic wage

A: Fixed charge (one time cut price)

1. Chicken coop and different pieces: Shs 3,450,000

2. Electricity and water (connection): Shs a million

3. Basic prison and different bills: Shs 700,000

4. Tuition: Shs 42,000

Total quantity: Shs 5,192,000

B: First 4 months (weeks 1-17)

1. Day-old chicks (1000 of them): Shs 4,500,000

2. Chicken feed (first): 13,043,836

3. Other surprising bills: 220,000

Total quantity: Shs 17,763,836

C: Work (weeks 1-17)

1. Farm supervisor: Shs 800,000 (200k per thirty days)

2. Farm supervisor: Shs 1,200,000 (300k per thirty days)

3. Farm arms: Shs 720,000 (Compared to a few arms every incomes 60k per thirty days)

4. Vet administrative center Shs 90,000 for 3 visits.

Total quantity: 2,810,000

D: Emergency (10%): 2,576,584

ORIGINAL TOTAL: 28,342,419

Summary 2: Profit and Return on Investment

MONEY (for 8 months)

The quantity is estimated at 1,000 hens that die with 7% and thus 930 internet. It is estimated that every chicken lays 292 eggs a 12 months. This is rated in 8 months to have the primary monetary length (just like the 4 months the rooster matures). In Uganda, eggs are bought in trays of 30. It is alleged that during August 2011, every egg price Shs 300, because of this {that a} tray prices Shs 9,000.

Based at the above, the Earnings for the length shall be:

1000 chickens with lower than 7% mortality: 930 chickens * 292 eggs every = 271,560 eggs = 9,052 trays

Each tray is Shs 9,000 so 9,052 * 9000 = Shs 81,468,000 in step with 12 months (or 292 days in step with 12 months that chickens lay)

Pro ranking annual source of revenue for 8 months is Shs 54,834,231

TYPES (Monthly for 8 months)

1. Chicken feed: 24,261,534. This is in comparison to a rooster that eats about 37kg in step with 12 months.

In August 2011, portioned feed (which chickens consume as a rule at 17 weeks of expansion) prices Shs 75,000 in step with 70kg bag. Based at the above, a rooster consumes meals value Shs 108.7 in step with day.

The general quantity in 8 months is due to this fact Shs. 24,261,534

2. Transport to the marketplace: Shs 5,400,000 (estimated at Shs 15,000 in step with day)

3. Labor (equivalent to the price of hard work within the first 4 months however for 8 months): Shs 10,940,000

4. Utilities (water and electrical energy): 720,000

5. Miscellaneous: 1,800,000

Total: Shs43,121,534

Operating benefit: Shs 11,712,697

Other bills:

1. Sale of chickens (after their harvest): 6,510,000. I feel every rooster will promote for Shs 7,000 marketplace worth in August 2011.

2. Minimum: Purchase worth: 200,000

3. Chicken droppings: 8,035,510

(a complete of 11479 kg of faeces produced because of this being 1/3 of meals). Each kilo is bought at Shs 700.

Net benefit (together with different bills): Shs 26,058,207

Return on capital: 1.09 years.

As you’ll see above, In 12 months you’ll be expecting to pay again your price! I don’t believe there may be a lot more to mention about this episode however for individuals who are, neatly there’s a 3rd reason why that is just right.

4. The advantages of social accountability

Charitable organizations and different non-governmental organizations acknowledge the function of poultry farming in rural spaces, particularly for girls, and plenty of research display that this can be a social alternate.


First the numbers

Based on my research:

* Investment (A): Shs 28,342,419

* Annual source of revenue (together with different bills): Shs 69,179,741

* Annual benefit (source of revenue (together with WIFI) and excludes all bills) (B) is Shs 26,058,207

* Payback (years to payback or A/B) is 1.09 years

Now the fundamentals you wish to have to get ahead of making an investment.

* Operating bills. As I mentioned originally, for 4 months you’re going to be doing this industry with none cash, you wish to have to get the vital cash particularly for feeding the chickens. You can not compromise the standard of meals or its amount when cash is scarce as a result of this will likely compromise the standard of eggs and poultry.

* Support for agriculture and training. This is a space the place the federal government, non-governmental organizations, donors have given some huge cash so there is not any reason why to not use the assets from NAADS to assist sectors, tasks supported by means of NGOs, even many rooster donors these days. offering training.

* Market / distribution community. There are large constraints in Uganda and it’s just right to extend the inhabitants to 1000 birds but when you’ll’t get them to the marketplace then simply throw them away. So it’ll be vital that anywhere you select to find your farm you take into accounts how you’re going to succeed in the marketplace.

* Earth. Now you can realize that I have not regarded as the price of land on this research. The causes are many. When I take into accounts this industry and my analysis, the funder can get the land “for free” i.e. by means of hiring native other people, family from the geographical region and so forth.

So I did not suppose it was once a large factor. Besides, chickens don’t require a large number of house and if vital the gap can also be “rented” affordably in rural spaces of Uganda. Of direction, do not make a choice to challenge into the Mabira woodland or the swamp as a result of then my “friend” Col Otafire might ask you if you’re a frog!


As I mentioned, this sector isn’t going any place and there shall be call for for agricultural merchandise. In addition, as evolved international locations transform extra prepared to pay for “natural” merchandise, Ugandan chickens will proceed to be in call for.

I promised to study “Mavi Ya Kuku” intimately and you’re going to see that during my monetary research, this sh%*t is in reality getting cash since the agricultural sector continues to develop and fertilizers proceed to lower in worth. , farmers will search for different choices. Chicken droppings can also be that long term and sure, “Mavi Ya Kuku” along side “Big Chicken” is our long term!

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