Comprehensive Guide to Starting an Organic Desi Murgi Farm in Rural Dimapur

Bankable business plan for a 500 Desi Murgi (local breed) farm in Rural Dimapur

Desi Murgi farming, a traditional practice in rural India, involves raising indigenous breeds known for their resilience and adaptability. This form of poultry farming emphasizes organic methods, promoting health and sustainability. Ideal for small-scale farmers, it requires minimal investment but offers significant returns through the sale of eggs, chicks, and mature birds. Desi Murgi not only supports local economies but also provides households with nutrient-rich, organic poultry products. Here’s a comprehensive plan designed to facilitate the setup and successful operation of such a farm:

Executive Summary:

• Business Objective: To establish a 500 Desi Murgi chicken farm focusing on the production and sale of chicks, eggs, and mature birds.

• Location: Rural Dimapur (India), utilizing local resources and labor.

• Products: Eggs, Chicks, Full-grown Desi Birds.

• Market Strategy: Targeting local markets, organic stores, and direct selling to consumers who prefer organic and locally raised poultry.

• Financial Projections: Aim to break even within the first two years with projections for scale and potential profitability in subsequent years.

1. Infrastructure & Space

Housing:

• Type of Housing: Natural ventilation model with night shelters.

• Capacity: Adequate to house 500 birds, with a spacing of about 2 square feet per bird, totalling 1000 square feet.

• Construction Materials: Bamboo, mud, thatch (for roofing), and mesh wire. These materials are cost-effective and usually readily available locally.

• Water Supply: Community-based water supply or bore wells with water troughs for drinking purposes.

Construction Cost:

• Building Cost: Approximately INR 200,000 to 250,000. This includes the cost for bamboo structures, thatch roofing, feeding troughs, and labor.

• Fencing: Around INR 20,000 to secure the perimeter with mesh wire.

2. Feed Requirement

• Type of Feed: Organic feed comprising of maize, sorghum, broken rice, fish meal, and shell grit. Supplement with green fodder, vegetables, and kitchen scraps.

• Monthly Feed Cost: Roughly INR 50,000 based on current local prices.

3. Other Essential Expenditures

• Labor: 2 full-time workers (INR 8,000 per worker per month).

• Utilities: Electricity and water (INR 5,000 per month).

• Miscellaneous: Including vaccination, healthcare, and other unforeseen expenses approximately INR 10,000 per month.

4. Revenue Streams

• Chicks: Sale of chicks can be a significant revenue stream; each chick can be sold for INR 50-70.

• Eggs: Each hen is capable of laying around 120-150 eggs per year. Selling price per egg can range from INR 5-10 depending on the market.

• Full-grown Birds: Each can fetch INR 300-500 in the local organic market.

5. Best Practices for Minimizing Operational Costs

• Local Sourcing: Use locally available feed ingredients and construction materials.

• Natural Disease Prevention: Implement biosecurity measures, regular vaccinations, and maintain hygiene to reduce disease incidence and minimize veterinary costs.

• Water and Feed Conservation: Install water-saving devices and practice proper feed management to avoid wastage.

• Direct Sales and Marketing: Minimize reliance on middlemen by selling directly at local markets or through community-supported agriculture (CSA) models.

6. SWOT Analysis

• Strengths: Low operational costs, high demand for organic poultry products.

• Weaknesses: Vulnerability to disease, market price fluctuations.

• Opportunities: Growing demand for organic poultry, potential for scaling up operations, integration with agritourism.

• Threats: Natural disasters, increased input costs.

7. Conclusion

This business plan outlines the necessary steps and considerations for setting up a sustainable and profitable Desi Murgi farm. By adhering to local best practices and focusing on operational efficiency, the farm can not only achieve its financial goals but also contribute positively to the community's economy.

8. Appendices

• Appendix A: Detailed construction plans and material suppliers.

• Appendix B: Feed schedules and nutritional information.

• Appendix C: Profiles of potential local markets and marketing strategies.

This comprehensive plan is designed to guide through the process of setting up an efficient and economically viable Desi Murgi farm, leveraging local resources and markets to ensure success and sustainability.

Appendix A: Construction Plans and Material Suppliers

Construction Details

• Farm Layout:

  • Shelter Area: 1000 square feet divided into 2 sections for different poultry age groups.

  • Open Range Area: Approximately 1500 square feet, fenced with mesh wire for free-ranging.

  • Storage Room: For feed and equipment, approximately 200 square feet.

  • Workers' Quarters: Small cabin if round-the-clock monitoring is needed.

• Construction Materials and Suppliers:

  • Bamboo: Sourced from local forests or markets, used for framing and internal structures.

  • Thatch: Local grasses or palm leaves for roofing, available from local vendors.

  • Mud: For wall building, can be sourced from local fields.

  • Mesh Wire: Necessary for fencing, purchased from hardware stores in Dimapur city.

  • Suppliers:

    • Nagaland Bamboo Resource Centre, Dimapur - Bamboo Supplies.

    • Dimapur Local Market - General construction materials like nails, tools, and mesh wire.

    • Local Farmers - For sourcing thatch and mud at competitive prices.

Estimated Cost Breakdown:

• Total Estimated Construction Cost: INR 200,000 to 250,000

  • Bamboo and wood: INR 40,000

  • Thatch and mud: INR 30,000

  • Mesh wire and miscellaneous: INR 30,000 to 80,000

  • CGI Sheets: INR 100,000

  • Labor: INR 20,000

Appendix B: Feed Schedules and Nutritional Information

Feed Composition

• Basic Diet (per bird per day):

  • Maize: 50 grams

  • Sorghum: 20 grams

  • Broken rice: 30 grams

  • Fish meal: 15 grams

  • Shell grit: 10 grams

  • Green fodder and vegetable scraps as supplements

Monthly Feed Requirement

• Total Feed for 500 Birds: Approximately 6750 kg of basic diet per month

• Source:

  • Local Mills in Dimapur for maize, sorghum, and rice.

  • Fish markets for fish meal.

  • Local vegetable markets for green fodder and scraps.

Nutritional Benefits

• A diet rich in protein and calcium promotes healthy growth and high egg production among Desi Murgi.

Appendix C: Profiles of Potential Local Markets and Marketing Strategies

Local Market Opportunities

• Retail Opportunities:

  • Local bazaars and food markets (e.g., New Market, Hong Kong Market).

  • Organic stores in Kohima and Dimapur.

• Direct Sales:

  • Community-supported agriculture setups where families subscribe to weekly deliveries of eggs and chicken.

  • Direct orders via local online platforms or social media groups.

Marketing Strategies

• Branding: Use of traditional Naga motifs on packaging to emphasize local culture and appeal to ethnic pride.

• Promotions: Seasonal discounts, loyalty programs for regular customers, and sample tastings at local events.

• Community Engagement: Participation in local fairs, agricultural shows, and sponsoring community events to increase visibility and engagement.

Potential Challenges

• Transportation logistics due to rural location.

• Competition from cheaper, commercially raised chicken.

These appendices provide a detailed overview necessary for the successful setup and operation of a Desi Murgi farm in Rural Dimapur, addressing local specifics from construction and feed to marketing and sales strategies. By tailoring the business plan to regional specifics, it maximizes relevance and efficiency, paving the way for a sustainable and profitable venture.

Revenue Streams Detailed Analysis

• Chicks:

  • Sales Unit: Per chick

  • Price: INR 70 per chick

  • Production: Each hen can be expected to hatch about 10 chicks per year (considering not all eggs are set for hatching).

• Eggs:

  • Sales Unit: Per egg

  • Price: INR 7 per egg (organic premium price)

  • Production: Assuming a conservative average of 120 eggs per hen per year.

• Full-Grown Birds:

  • Sales Unit: Per bird

  • Price: INR 400 per bird

  • Production: Birds specifically raised for meat, approximately 20% of the total flock per year are sold as full-grown.

Assumptions

• Survival Rate: 90% survival rate for chicks to adulthood.

• Market Growth: A steady market growth of 5% per year in demand for organic poultry products.

• Operational Efficiency: Increases slightly due to experience and optimization of processes by 2% per year.

Three-Year Revenue Projection

Let’s calculate the expected revenue from each stream per year for the next three years.

Initial Population Data:

• Total Birds: 500

• Breeding Hens: Approximately 70% of the population = 350 hens

Yearly Projections:

Year 1:

• Chick Revenue: 350 hens × 10 chicks/hen × INR 70 = INR 245,000

• Egg Revenue: 350 hens × 120 eggs/hen × INR 7 = INR 294,000

• Bird Revenue: 500 birds × 20% × INR 400 = INR 40,000

• Total Revenue Year 1: INR 579,000

Year 2:

• Increase in operational efficiency: More effective feeding and management improve overall productivity by 2%.

• Chick Revenue: (350 hens × 10 × INR 70) × 1.02 = INR 249,900

• Egg Revenue: (350 hens × 120 × INR 7) × 1.02 = INR 299,880

• Bird Revenue: (500 × 20% × INR 400) × 1.02 = INR 40,800

• Total Revenue Year 2: INR 590,580

Year 3:

• Continued efficiency improvement: Additional 2% increase.

• Chick Revenue: (350 hens × 10 × INR 70) × 1.04 ≈ INR 254,800

• Egg Revenue: (350 hens × 120 × INR 7) × 1.04 ≈ INR 305,760

• Bird Revenue: (500 × 20% × INR 400) × 1.04 ≈ INR 41,600

• Total Revenue Year 3: INR 602,160

Summary

The Desi Murgi farm in Rural Dimapur is projected to generate increasing revenues over the next three years due to improvements in operational efficiencies and steady market growth. The detailed breakdown is as follows:

• Year 1: INR 579,000

• Year 2: INR 590,580 (2% increase in efficiency)

• Year 3: INR 602,160 (4% cumulative increase in efficiency)

These figures are based on current market conditions and projected efficiencies. This projection helps in understanding the scaling and financial planning needed to maintain and grow the poultry business in Rural Dimapur.

Revenue Projection - Scenario A

Annual revenue projection for a scenario where all chicks produced by 500 Desi Murgis are reared and sold as full-grown birds in the Dimapur market, after considering several factors such as the production rate of chicks, the survival rate until they reach full-grown status, and the market price per full-grown bird.

Assumptions:

1. Number of Breeding Hens: Assuming about 70% of the 500 birds are hens, i.e., 350 hens.

2. Chicks per Hen per Year: Typically, a hen can hatch about 10 chicks per year (considering not all eggs are set for hatching but are used for chick production in this scenario).

3. Survival Rate: Assuming a 90% survival rate from chick to adulthood, which is generally realistic under good management conditions.

4. Sale Price per Full-Grown Bird: Full-grown Desi Murgis can be sold for INR 400 each in the local market, considering they are raised organically and command a higher market value.

Calculation:

• Total Number of Chicks Produced Annually: 350 hens × 10 chicks/hen = 3500 chicks

• Number of Surviving Birds (assuming 90% survival): 3500 chicks × 90% = 3150 birds

• Annual Revenue from Selling Full-Grown Birds: 3150 birds × INR 400 per bird = INR 1,260,000

Annual Revenue Projection:

Therefore, if all the chicks produced are reared to adulthood and sold as full-grown birds in the Dimapur market, the projected annual revenue would be approximately INR 1,260,000. This model focuses solely on revenue from selling mature birds, excluding any potential earnings from eggs, which could be a significant consideration in diversifying income streams under normal operations.

Revenue Projection - Scenario B

Annual revenue projection under the scenario where all eggs produced by 500 Desi Murgis are set for hatching, the chicks are reared to adulthood, and then sold as full-grown birds in the Dimapur market, after taking into account for several factors including the production rate of eggs, the hatchability rate, the survival rate until they reach full-grown status, and the market price per full-grown bird.

Assumptions:

1. Number of Hens: Out of 500 birds, assuming about 70% are hens, that is 350 hens.

2. Eggs per Hen per Year: Typically, a hen lays about 120 eggs per year. For simplicity, we consider all these eggs are set for hatching.

3. Hatchability Rate: Not all eggs will hatch successfully. We assume an 85% hatchability rate, which is optimistic and assumes good incubation practices.

4. Survival Rate: Assuming a 90% survival rate from chick to adulthood under good management conditions.

5. Sale Price per Full-Grown Bird: Assuming a selling price of INR 400 per full-grown bird.

Calculation:

• Total Number of Eggs Produced Annually: 350 hens × 120 eggs/hen = 42,000 eggs

• Number of Chicks Hatched (85% hatchability): 42,000 eggs × 85% = 35,700 chicks

• Number of Surviving Birds (90% survival): 35,700 chicks × 90% = 32,130 birds

• Annual Revenue from Selling Full-Grown Birds: 32,130 birds × INR 400 per bird = INR 12,852,000

Annual Revenue Projection:

Under the assumption that all eggs are set for hatching and all hatched chicks are reared to adulthood, the projected annual revenue from selling these birds as full-grown would be approximately INR 12,852,000. This scenario maximizes the production of full-grown birds by converting all possible eggs into chicks, thereby potentially increasing the total revenue when compared to selling eggs or younger chicks. This approach, however, requires excellent management to maintain high hatchability and survival rates.