Hawi Boru Egg Production and Marketing Common Interest group

Project Name: Livestock and Fishery Sector Development Project-LFSDP

Component A is one of the Livestock and Fishery Sector Development Project components aims at increasing productivity and commercialization of producers and processors in the selected VC in 58 Woredas by improving their access to critical knowledge, services, inputs, equipment and productive infrastructure, and increasing their linkages with markets and value chains. The project has started implementation by organizing Common Interest Groups working on selected value chains.

Hawi Boru Egg Production and Marketing Common Interest group
Hawi Boru Egg Production and Marketing Common Interest group (CIG) is one of the 2070 CIGs organized in Oromia region, Marmarsa Kebele, Adama district in the year 2020 with 10 members of whom all are female.

Hawi Boru Egg Production and Marketing Marketing CIG

Hawi Boru Egg Production and Marketing Common Interest group (CIG) members have organized in a group using CIG establishment guideline that guides them work and benefit collectively. All the members have a common interest and live in the same locality. They agree to use their resources in common particularly their labor and money, work collectively to improve their income and livelihoods. They aim to solve their common problems by working together. The group has started by contributing money as a registration fee and share. The CIG has got land from Marmarsa Kebele and received a land certificate. They have got the chance of getting a grant from LFSDP by using the opportunity announced by the Adama district project coordination unit. The CIG members have prepared a basic sub-project with the help of Marsa Kebele Extension worker. During establishment, the members have contributed in labor and savings which is about 20,000 birr that was paid as their share. By having these savings, they applied to the LFSDP project to get additional support and solve the problem related to initial capital to enter into layers production and marketing activity.

 

Adama district is conducive and suitable for poultry production because of having a favorable environment, accessible for the input source, water, egg market, and all infrastructures which are helpful for layers management and egg production. By using the existing opportunities, the CIG members have prepared a basic sub-project with the help of Marsa Kebele Extension worker. The gap areas were identified using Eth-GAP assessment tools with the assistance of Development Agent (DA). They prepared and submitted a basic subproject to the woreda appraisal and approval committee. Their proposal was approved and received 100,000 seed money in kind from LFSDP Adama Woreda Project Coordination Unit. Thus, they have started working on egg production by keeping 300 layers using the grant money and their equity, which is ETB 120,000 initial capital.

Hawi Boru Egg Production CIG, by using members labor, available materials, and the allocated capital, they have finalized poultry house construction, procure all necessary equipment which is important for layers production, and procured all necessary inputs. The group started production by purchasing 300 layers and availing layers concentrate by purchasing from known feed suppliers following the LFSDP procurement procedure. Each member has a division of labor in managing the layers and carry out all routine activities. The management role led by chairperson and deputy. The group has a bylaw that clearly states the roles and responsibilities of all members so that all members do the routine activity following their schedule.

 

Expenses as per the approved plan

  • Constructed standard poultry house for layers accommodating 300 layers at a time. The total cost of the ETB 46,000. 00
  • Procured equipment for ETB 15,000

Total fixed cost 61,000 birr

Variable costs

  • Layers purchasing 39000
  • Layers feed 58,500
  • Others (health service, transport, labor, and marketing) 16,000, 
  • Total cost is ETB 113,500
  • Depreciation 12,190
  • Gross profit 

 

Financial performance.

The CIG has started collecting an egg from 250 layers (83.3%) laying rate. Currently, they are selling an average of 220 eggs per day and received a daily income of 880 ETB. We have tried to estimate the average production of 220 eggs per day by assuming the starting yield, pic yield, and yield at the last age of laying., 

Therefore, the following table indicates the income and expense estimated for one-year based on the daily egg production and sales

Financial performance

Financial Performance and profitability

Description

UoM

Volume

Total eggs produced on 220 laying days

Unit price(birr)

Total Revenue(birr)

Total Expense

Income

Egg Sales

Number

226 eggs/day

49720

4

198880

Culled hens’ sales

300

270

150

40,500

Total Income

239,380

Pullet purchasing

300

300

130

39000

Feed Cost

Quintal

45

1300

58500

Other costs (Labor medicament, transport, labor, marketing)

Lmp

745

16000

Total expense

113,500

Gross profit

125,880

Depreciation

12,190

Net Profit

113,690

Summary

Hawi Boru Egg Production and Marketing Common Interest group (CIG has been operating layers farm by keeping 300 layers. The group purchased layers and keep at good poultry husbandry practice. So that 83.3% of hens have started laying eggs. A total of 250 eggs per day is produced and sold for surrounding consumers on daily basis. As a result, they are earning 1000 birr per day. We have calculated an average yield to be 226 eggs per day and estimated the laying age to be 7.5 months. Thus, a total of 49,720 eggs per laying age is expected to be the earnings of the group. Similarly, it is estimated to sell all pant hens after completing the laying period so that by considering10% mortality rate, we estimated to sell 270 culled hens by 150 birr and expect 40500ETB. Thus, a total of 239,380 birr is expected from the farm at the end of the year. Therefore, the CIG group is financially viable. The group expects 113,690-birr net profit after deducting the depreciation cost. Thus, they are motivated by the initial result of getting about 1000 birr per day and they assured us they are on a good start and planned to expand the business.

 

 

 

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