Low Cost High Profit Chickens
Low External Input Chicken production in Southern Brasil
Vera Cruz is situated in Brazil near the famous Iguaçú waterfalls. Vera Cruz is faced with an exodus of the rural population. Due to high production cost and low prices the 1.024 small establishments of farmer families continue to leave. Especially the children migrate to the big cities in search for work. This situation needs to be changed urgently. Farmer establishments need to be profitable, offering a rural life of dignity and be attracting for young farmers to continue.
This proposal enables many small farmers to generate income. It foresees in the production of agricultural implements, maize and soja beans, their transformation into fodder for chickens (and others), and the breeding of differentiated chicken.
It guarantees production of low cost chicken meat to be sold for a higher price, due to its tastier characteristics. Resulting in a sustainable income for many small scale farmers in Vera Cruz.
The Business
After 3 years the Chicken Breeders will produce 11.500 chickens /year each, totaling 700.000 chickens / year in the third year.
They will need 3.300.000 kg / year of maize and 1.500.000kg / year soja beans, resulting in an annual crop area of 625 ha of maize and 625 ha of soja, creating a demand of production for 100 families.
The business plan also foresees in the installation of a fodder factory, producing 5.000.000 kg of fodder / year, decreasing the production cost in 40%. As from on the third year the grain production will be organic, as a consequence the meat to, valorizing the final product.
The slaughterhouse will be build according to the standards of the state of Paraná, enabling the commercialization in all the cities of the Paraná. During the first 2 — 3 years the commercialization will attend Foz do Iguaçu, Cascavel, Toledo, Medianeira. For logistic matter one truck to supply the slaughterhouse and one small refrigerator truck for supply the clients will be bought.
According to a study, made by Incofin PR in 2003, it is to be expected that the demand for Differentiated Chicken Meat big enough. In the third year 1.300.000 kg of organic chicken meat is to be delivered throughout the west of Paraná.
Chickens as commercialized weights 1,8 kg, to be sold at R$4,50 / kg, thus R$8,10 / chicken. The expected production cost is R$6,00 / chicken, resulting in a net income of R$2,10 / chicken. Considering a production of 11.500 chickens / year every family generates a net year income of R$22.050,00 / year.
Part of business plan already foreseen in euro:
16.000,00 Terrain preparation
32.000,00 Fodder Factory structure
15.200,00 Fodder factory equipment
4.800,00 Refrigerator cell
80.000,00 Construction of the slaughterhouse and equipments
16.000,00 Terrain (supplied by the local government)
164.000,00 Total
The local government will supply for the technical assistance for the farmers and the transportation of the chickens to and from the slaughterhouse.
Investment as applied for:
44.000,00 Equipments fodder factory
40.000,00 Refrigerator Truck
36.000,00 Equipment slaughterhouse
32.000,00 Truck for (living) chicken transportation
152.000,00 Total
With the sanitary approval for our slaughterhouse in hand, our cooperative will be the first to sell differentiated chicken meat in the western part of Paraná. In 3 years from now the fodder and thereby the chickens will be certified as organic. At this moment there are no other organic chicken suppliers in Paraná. Taking advantage of this unique situation, marketing will need to work this aspect.
Western Paraná has a population of more than 1 million people. Following the statistics on organics in Brazil, 5% of the population says prefering organic chicken resulting in a demand bigger than our production.
Our competitors are big companies like Sadia, Lar, C-Vale, Coopavel and others. All of them work with conventional chicken breeding, using huge quantities of antibiotics and GMO fodder. That’s why these companies will supply to other consumers, leaving us an interesting quantity of potential organic meat buying families.
Our business partner is the Credit Cooperative Cre$ol. Most farmers are member of Cre$ol. Cre$ol makes it possible for many families to invest in the infrastructure for chicken breeding.
The funding we succeeded until now is insufficient to make the step we need to commercialize outside city boundaries. If no approved by Bidchallenge we will need to search on for an interested donor, investor, business partner,….
Development
In the third year business will generate income for 100 fodder producing farmer families, 70 poultry farmer families, 50 slaugters. Giving a huge impact in the local economy. The next step wil be an approval for comercilization all over the Brazilian terretory. Probebly the next 5 to ten years will be needed to consolidate the prodaction and comercialization in Paraná.