From the Directors Desk

From the Directors Desk
UBCYF Director , Rev.Mazorodze with UBCYF President ,Misheck Mlambo

Thursday, September 9, 2010

YOUTH PROJECT PROPOSAL

UNITED BAPTIST CHURCH YOUTH FELLOWSHIP

NYAKAMBA POUTRY PROJECT PROPOSAL

APRIL 2010
conteemak@yahoo.ca
ubcyf@yahoo.com
youthsdirector@yahoo.com







Introduction
1. Name of the Project : UBC YF Project
2. Type Of Business : Cooperation
3. Status of Project : Non Existent needs Funding
4. Type of Business : Poultry and Agriculture
5. Location Area of Business : Nyakamba Chimanimani
6. Postal Address : 10 Cripps Road, Palmerstone Mutare
7. Telephone ( Business) : +263 913 765 198,0912 551 432,0914 307221
8. Contact Details/ Postal Address : National Youth Executive Treasurer
Content Makumbe
100 Third Street, Mutare
9. Email Address : ubcyf@yahoo.com
10. Total Cost of Project : USD 1650
Owners Equity : USD 0
Loan Required USD 1650
11. Project Committee : Mr Gwinyai Muyambo( Supervisor)
Petros Mungana
Content Makumbe( Treasurer)
Nicholas Dube
Innocent Dube


Vision:
To be a leading provider in Chicken and other Agricultural Products owned by UBC Youth Fellowship in Manicaland and Zimbabwe as a whole as well as alleviating poverty by creating employment to youths in Zimbabwe

Mission Statement
The Poultry Project goal is that of a multi-fated success. Our first responsibility is the financial well being of the business. As well we will meet this goal while trying to consider the effect of our products as well as customers satisfaction, the Impact of our practices and choices will have on the environmental and the high quality of attitude, fairness, understanding and generosity between management, staff and customers and suppliers. Awareness of all these factors and the responsible actions that result will give our efforts a sense of purpose and meaning beyond our, basic financial goals. Would also ensure use of local raw materials and practice good business ethics

Future Plan
If the project is meeting its projection by month, 12 we will be scouting for a second premise and develop plans for the next unit. Our two-year goal is to have at least two big fowl runs, which can accommodate more than 10 000 chickens and a Purchase of a van, as well as diversifying into selling of rearing of chicken layers. Also our main goal is to have a combined Annual output of between USD 5000 to USD 10 000

1. EXECUTIVE SUMMARY
United Baptist Church Youth Fellowship project will be an Association, which will be owned by UBC YF youths, under the close supervision of the Farm Committee, with National Youth Executive Committee having overall responsibility. All the minimum legal requirements will be done, and we will plan to buy a shelf company. However, we have recently talked to the Managers of Bhafaloe Hardware, Mutare farm Suppliers, Farmco on the issue of supplying us with some inputs and they confirmed that they will constantly supply us with the inputs so that we can effectively run this poultry project. Our Fowl runs are currently located at Mr and Mrs Gwinyai Muyambo (our senior youth) farm in Nyakamba-Chimanimani area, and it will be on free basis.

The main aim of starting this business is to reduce financial burdens from our districts, and be financial stable as United Baptist Church Youth Fellowship as well as Creation of employment as well as alleviating poverty amongst Youth in Zimbabwe. We have therefore thought of starting this poultry project so that we assist youth activities and assist in meeting youths objectives.

United Baptist Church Youth Project will be selling both dressed (packed) and undressed chickens, selling of chicken cutlets, gizzards Chicken Liver, Chicken feet, chicken heads and in the long run we will engage in selling of stock feeds, chemicals, eggs, rearing of chicken layers. We will definitely diversify as soon as we start making profit. We are going to be serving small markets, and we will offer door-to-door delivery services, which are normally ignored or by passed by other giant producers who are already in the market. Our chickens will be branded and this will occur when we start making positive returns or profits.

We are at UBC YF project we want to ensure both Customer and Supplier satisfaction, and we would ensure that there will be a decreased number of unemployment rates of youth in Manicaland and Zimbabwe as whole, and this will move a long way in alleviating poverty and decrease cases of youth engaging in to anti-social practices within youth members

Our customers will be local residents of Mutare, Manicaland, Non Governmental Organisations (Windows of Hope, Pro-Active against Aids Trust and Governmental Organisations, Mission Schools, Secondary and Primary Boarding, Football Clubs (Mutare United), Restaurant and Hotels owners, United Baptist Church of Zimbabwe, Butcheries etc
We have ready suppliers who will be supplying us with the required inputs and raw meterials.some of suppliers who have confirmed to supply us include Bhafaloe Hardware,Mankep Hardware,Farm-Co,Bafs Hardware,Agri-Foods,GMB,Premier Company,Pulmcob Enterprises and other company who are promising to work with us.

According to the research carried by the project supervisors, many people in Zimbabwe due to electricity shedding and power cuts opt to take and cook chicken as relish for their meals than meat, because it gets ready easily and it does not consume lot of energy e.g. Firewood. More so many existing companies of chickens do not serve smaller markets, and they do not advertise their products so that it would sound cheap to them, but we as United Baptist Church Youth Farm will try to take advantage of other producer’s weaknesses to penetrate into the market and make profit. We are also targeting the historic 2010 World Cup, and we have planned to supply chickens to local hotels,lodges,and resturants.We do really have a vision to make huge profits by offering high quality chickens, offering efficient and good effective marketing services.

Customer will be assured quality services and their needs will be fulfilled. We will be operating uniquely and customers will be given a chance to view out their interests so that we can operate to suit their interests to achieve customer satisfaction.

All in one, we do not have capital of USD 1650 to effectively expand the project. We also intend to open a Current Account so as to keep safe our monies and check the cash inflow and outflows, as well as doing monthly audits as well as assessments of the project, one of the

The Supervisors has experience in Poultry Management and the other in Human Resources Management, we really have the confidence that the project will be effectively supervised and managed.

Our business Advisor is Mr. G Muyambo who is the owner of Nyakamba Farm and has great knowledge in poultry production, will assist in thus project.

2. Background and Start up Summary
According to the recently published statistics from the Government, about 87.5% of youths in Zimbabwe are Unemployed and dependant on elderly people. In addition, according to research in United Baptist Church of Zimbabwe youth department about 95% of the youths are unemployed and are facing difficulties in raising youths budgets due to unemployment. We have come together as a Committee so that we can effectively start this project so that we can make profit as well as create employment to other Youths as well as other people in Zimbabwe. We are also finding

difficulties in accessing monies to engage into other projects as well as honor some of our scheduled plans due to black of funds, this project will go a long way in improving the standard of living of both Zimbabwean youths and us (the owners). We are going to gain famous as United Baptist Church Youth Fellowship, and we will evangelize in and around Zimbabwe due to the effectiveness management of the project

We have also thought of starting this project to fulfill the Socio-economic and Religious needs of the Youth group. We have also find that in United Baptist Church youth and Zimbabwe as a whole there are a number child headed families, high rates of orphans and the vulnerable Children, so we intended to support these people in the community so that they will be treated as first class citizens not second-class citizens.

We are also youths out of school and the Income Generating Project will go a long way into assisting us, especially in creating employment for us since we will be workers and self employed.

We also attended a seminar on entrepreneurship, we were encouraged to start the project, we were given the basic types of projects youths can start, and we came together as youths and decided to
Start this chicken project as our main aim is to raise profit, encourage use of local technology, create employment, elleviate poverty as well as adding of value to Zimbabwean Youth. We also intend to fulfill organizational needs as well as get status in the country as youth. We will also assist the country in raising revenue through paying tax thus in the long run.

3. Market Summary
3.1) Product and Services
United Baptist Church Project will be selling Dressed and Un-dressed Chickens, Gizzards, Liver, Feet, head. We will be.
We will be offering door-to-door services, and we will serve smaller markets, which are ignored by big companies. Our products will be packed with well-labeled plastics, and the chickens will be of high quality

All this can be effectively done when the project receives funding and we get work started. Chicken rearing is easy to start with, the ideal knowledge we have and the energetic youths the owners of the project who are willing to work.

3.2) Production
We will be initially holding the project at Nyakamba in Chimanimani, about 120 Kilometers away from the Central Business District, but soon the production will take place in Mutare City if we find suitable premises and we effectively expand and we will make sure that there is a continuous and constant supply of chicken and we will be producing the chickens in a 3 week interval. Some of the chickens will be dressed and other will not be dressed. Cutlets will also be sold, and we will do the dressing at B&C Investments, and we will do the cuttings, Mr Content Makumbe and Mr. Gwinyai Muyambo the project supervisor(s) have ideal knowledge in dressing chickens and it wouldn’t be a problem, all this will be done at the premises of operation. Hygiene will be greatly maintained and there will be strict standards of sanitation, quality production and presentation or packaging of products.

3.3) Service
There will be three ways customers can buy, they can visit the premises and make direct selection of the products they want, we can also offer a door to door delivery of the products, and we can use our agents to sell the products that is butcher companies which are properly positioned and would attract many customers-that is the business people who will come to buy our products/chickens because they are mature and our services are efficient and the prices will be affordable.

4. KEY SUPPLIERS
Our key suppliers will be
 Bhafaloe Hardware Private Limited
 Mutare Farm Suppliers
 Farm and City
 Mainkep Hardware
 Agri-Foods Pvt Ltd
 Farm-Co Trading
 Pulscomb Trading-Harare
 Chinyika Chicks-Mutare
 Suncrest Private Limited
 Mutare Farm Suppliers


4.1) CUSTOMERS
Our customers will be Church Organizations like United Baptist Church of Zimbabwe during their Annual 5 day Revivals, United Baptist Church Youth Fellowship Conferences, Mutare United Football Club, Restaurants Owners, Couples about to Wed, Non Governmental Organisations e.g. Windows of Hope, Mission Schools( Biriiri High and Rusitu High),Wholesale owners, Supermarket owners e.g. Mr. Jiyamwa, and other potential customers.. More so some of our potential customers and they are promising to buy chickens as soon as they get ready for sell.

The supervisor made a direct interview with one of the Administrator and Team Manager of Mutare United Football Club Mr. Bera, and he said’ they normally buy 15 Chickens every week when soccer players go for camping’’.
Many organisation who sell chickens, ignore smaller markets, and they do not offer door-to-door services to customers, and also they do not do promotions and they do not advertise their products.

We also talked to Mr. Misheck Mlambo the Field Officer Windows of Hope and he again promised to buy 50 birds of chickens from us every holiday camp, and during any seminars they hold at their organisation
Lastly, we made a long chat with the Managing Director of Zvirimugwara Restaurant and Dangamvura Hotel Mr. Clemance Duri and he has confirmed that he will buy at least 150 birds of chickens from UBCYF farm as soon as they get ready anytime

This has given us the confidence and zeal to engage and expand into this Poultry project, because there is ready market.

5. MARKET PENETRATION
Entry into the market should not be a problem. The Project has high visibility with heavy foot traffic all day long and also the Location of the business is well known, and the project owners have in-depth knowledge in chicken rearing and have been at their homes at small scales We also have an Project advisor who will be advising us in the chicken rearing project and the advisor has been known for scooping the Manicaland Farmer of the year awards ( Mr. Gwinyai Muyambo, and we can also use this penetrate into the market. The local residents and other people always support new youth business people, and USD 15-USD 20 will be set aside for pre-advertising and public relations campaign.

5.1) MARKETING STRATEGY
Even though our products will be unique and we have ready market, we will effectively market our produce in the following ways:
 Printing of Pamphlets
 Advertising in the Local newspaper
 Personal as well as Postal Marketing
 Direct Advertising

In future, we do anticipate doing advertising campaigns and even advertising in the Television as well as designing an advertising magazine



5.2) Pricing
To have a favorable profit margin United Baptist Church Youth Farm will make a thorough research and check the prices of other producers and retailers and will have average pricing policy against those of the competitors as well will offer quality chickens as to compete with other competitors on quality and services, each chicken will cost USD 6

No credit shall be offered, we will be operating on cash and carry basis

5.3) MARKET /INDUSTRY ANALYSIS
Although the poultry production is challenging and a bit competitive more, more producers have fewer resources, and they operate unprofessionally, trends are very important, the farm is well positioned and will be operating professionally, and the prices will be moderate.
The project members carried out a feasibility study in and around Manicaland Province to see our Strengths, Weaknesses, Opportunity and Threats (SWOT) Analysis and came up with the following

6. FEASIBILITY STUDY
6.1) Strengths
 We are strong and energetic youths willing to work at the project, and have ideal knowledge in Poultry Production
 We have an Advisor who has great knowledge in Chicken Rearing Projects and has been coming the Farmer of the year in Manicaland province
 The project will work closely with specialist in Livestock production, notable the division and veterinary services
 The Business is effectively positioned and will attract many customers, thus business people who will come to buy our products
 All legal documents are available and we will be operating legally
 A market research was effectively done, and we have ready suppliers and customers willing to support us
 Location of the project is very strategic, there is ready market and good communication and transport networks
 We will be producing unique products
 The project gets its main strengths from the current shortage of protein sources, particulary meat.

6.1.2) WEAKNESSES
 The project cannot safely predict the trends in feed availability in projected years
 The project can not accurately predict the future trends due to unavailability of loyal customer
 We do not have capital to effectively expand and kick start the project. There are also well established companies who can manage to finance themselves, which include SunCrest,irvines Marecha Chicken Producers, Chinyika Chickens, pa Simango chicken producers- they are relatively big and well established, but we will try to market our products and try to bit competition, we shall market our products in the Manica Post if we get funding

6.1.3) OPPORTUNITIES
 Well-established farms/companies ignore smaller markets, and we at UBC YF Project will try to serve both smaller and bigger markets. We also have an opportunity to sell Chickens to our Church Organisations, Church Revivals Our Mission Schools e.g. Biriiri High, Rusitu High, Rusitu Hospital, Church organizations like Windows of Hope, Football clubs –Mutare United and Gaza Gunners, Highway Football Clubs, Potters Restaurant.
 The farmers also has the opportunity to obtain a market for giblets, manure and furthers thus getting extra revenue

6.1.4) THREATS
 We do not have capital to effectively start this Chicken Rearing Project
 Disease outbreaks in large herds can be very detrimental although a flock healthy programme will be strictly followed.
 Stock theft is currently rife and posses a threat to the business, although tough security measures has been put in place to combat this threat

All in one, our weaknesses are going to be our strengths, and we hope we will effectively operate towards our Vision

6.2) COMPETITION
About Five Major Chicken providers in Manicaland area sell chickens. Although this presents an obvious challenge in terms of market share, it also indicates the presence of a large, strong potential. The newest competitors have made their success entry based on an innovative concept or novelty. UBC YF will offer an innovative product in a familiar style at a completive price. Our aggressive plans of door-to-door delivery will also give us an advantage to create a good Market share before the competition can adjust or similar concepts appear.

6.2.1) COMPETITION STRATEGY
There are 3(three) major ways in which we will create an advantage over our competitors these include
• Product identity, quality and novelty
• High employee Motivation and Good sales attitude. –we will be going to give our workers food Hampers after every 3 months of full operation
• Door to door delivery, as well as packing of other chicken parts/cutlets
• Strong Pre-advertising campaign
7. COSTING AND PRICING ANALYSIS

An investigation was carried out by the Farm Supervisor with other Traders in Mutare and some parts of Zimbabwe on the average cost of a standard of a dressed Chicken and he came with following information

 Standard dressed and Un-dressed Chicken of about 2 kgs cost USD 6 to USD 6.50 in Manicaland and some parts of Zimbabwe as whole,( that’s where market is)
 A below Standard Dressed and Un-Dressed Chicken of.less than 2 kg’s cost USD 5

Therefore at UBC YF Project we are going to be rearing and producing Standard Chickens and it would be costing USD 6 this price include all direct, indirect costs and an overhead absorption basis used is based on Direct labor Cost.
No Credit facilities shall be offered and a discount of 2% on Bulky Purchases of more than 300 chickens will be given to potential customers.

8. EMPLOYMENT POLICIES
 UBC YF will employ 2 workers in the 3rd month of operating, and the other personnel are owners of the project, and are involved in the day to day operation of the business
 Employees will be motivated and will given all minimum operation requirements of the Job
 No discrimination shall be practiced and proper recruitment channels will be followed, there will be an Equal Employment Opportunity for every youth.
 A Pay structure and Salary structure will be introduced after operating and after making profit, the
 The project committee of the company are highly trained in will be used to make the operation of the Business a success.
8.1) MANAGEMENT/PERSONNEL OF THE PROJECT










1.1 FARM SUPERVISOR
 This will be one of the supervisors who will be responsible for the day-to-day operations of the project and he over sees the operations every employee. He does the following duties
 review of Lease agreements
 Reports to the National Youth Executive Committee
 Oversee entire transformation and operations of the organisiation
 See to it that rentals are up to date
 Final approval of purchases and any deals legal deals which affect the organization
 Involved in recruiting of employess,and practicing good employment practices

1.2 Treasurer/Accounts Clerk
 This will be also one of the project supervisors and will be responsible for the cash inflow and outflows of the projects proceedings. He is also responsible for purchasing of all materials required, and calculation on salaries and wages. He however reports directly to the Supervisor
 Responsible for banking of organisation funds, as well as doing all financial transactions of the organisation
 Has to be a signatory of every bank account opened by the organisation
 Asses the financial well being of the project


1.3) GENERAL WORKER
 S/he is responsible for feeding chickens
 Sees to it that chickens are safe and number tallies with that of the Log book
 Does any other duties assigned by the managing director
 Writing a monthly reports of the proceedings at the fowl run

9. CONCLUSION AND RECOMMENDATION

The Business Proposal, Financial and SWOT analysis indicate that this project is viable provided good management is practiced. Good Management will be assured since technical advice will be readily available from Livestock specialist and veterinarians from governments departments.

The project will also go a long way in assisting the smooth financial flowing of UBC YF activities.



RECOMMENDATIONS FOR THIS PROJECT IS DRAWN FROM THE FOLLOWING
i. The Financial analysis indicates that the project is technically viable
ii. The project being in the best interest of the UBC YF members and will be set to get enough support from other stake holders

10. Financial Analysis and Plan
Details of the financial requirements and operations are clearly elaborated in the attached cash flow. The whole loan plus any interest accrued shall be fully repaid within 6 months from the date of borrowing.
• Gross Margin analysis and Break-even price
The Gross margin analysis and Break- even price are in the cash Flow
Gross Margin -refers to the difference between the projects gross income and all expenditures. It is generally referred to as profit
Break-even Price refers to pricing that will just get the project into neither a loss nor a profit position. Given this definition comparing the calculated break-even prices and the actual prices of broilers, this project will have a great room for profitable pricing

The Return per dollar values indicated in the cash flow show that this project is highly viable. This figure sometimes expressed as a percentage, is the amount of profit gained for every dollar invested. The figures indicate that the proposed venture will be able to generate substantial profit, which will enable it to repay the loan advanced.

















10.1) PROJECT REQUIREMENTS


ITEMS REQUIRED
QUANTITY
COST/ITEM
( USD)
TOTAL COST
(USD)
Broiler Chicks 300 $0.90 270.00
Stock Feeds 25 bags $26.00 650.00
Chemicals - $ 100 100.00
Feeding Equipments 20 $5.00 100.00
Structures/Fowl runs upgrading 300.00 300.00
Communication/Airtime 20 1 per Juice Card 20.00
Transport and Hiring - $20 per Delivery 20.00
Advertisement - 30.00 30.00
Labour 2 Months $40per Month * 2 Workers 160.00
TOTAL COST OF PROJECT 1650

2 comments: