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Metacloud Store - BUSINESS IDEA FOR SETTING UP A CHICKEN HATCHERY

This business idea is aimed at setting up a Chicken Hatchery. The idea is premised on hatching eggs for layers and broilers for both local and hybrid birds. The business will be hatching 38,000 chicks

March 18, 2025 · 2 min read

This business idea is aimed at setting up a Chicken Hatchery. The idea is premised on hatching eggs for layers and broilers for both local and

hybrid birds. The business will be hatching 38,000 chicks per month which translates into 456,000 chicks per year. The revenue potential is estimated at US$ 33, 900 per month which translates into 406,800 per

year. The business has a good market demand throughout the year and can provide employment to the youths and women. The production capacity is hatchery of 38,000 eggs. The project cost is US$ 89,250

Process Description

Eggs are collected and inserted into the Incubator for 18 days. The

eggs are then transferred into a Hatchery for 3 days to hatch.

Market Analysis

The business has a great market demand both in rural and urban areas throughout the year. Market for the Hatched chicks comes from poultry farmers across the country and beyond borders. The main key players in this business include; Kagodo Farmers, Munva Farm,Ugachic, and Biyinzika Entreprises Ltd.

Capital Investment Requirements In US$

Item	Unit	Qty	Unit Cost	Total
Incubator	No.	1	6,000	6,000
Hatcher	No.	1	6,000	6,000
Feed mills & Mixer	No.	1	2,500	2,500
Generator	No.	1	5,000	5,000
Total Cost of Machinery				19,500

Production and Operation Costs in US$

Direct Materials, Supplies and Costs

Cost Item Units

Unit Cost/ day Qty

Prod. cost/ day

Prod. Cost/ month

Prod. Cost/ year

Parent stock No. 15.0 100 1,500 1,500

Eggs No. 0.05 38,000 1,900 22,800

Coffee husks Tones 15 1 15 15

Disinfectants	Ltrs	1.3	3	4	101	1,217
vaccines	Ltrs	2.5	4	10	260	3,120
Sub-total	3,776	28,652
General costs (Overheads)
Utilities (power)	150	1,800			150 150 150 150
1,8001,800Utilities (water)	15	180
Salaries	300	3,600
Feeds	7.8	94
Fuel	260	3,120
Renting	150	1,800
Depreciation (Assets write off) Expenses	406	4,875
Sub-total	1,289	15,469
Total Operating Costs	5,065	44,120

Production assumed 21 days in a month with a capacity of 38,000 eggs per

press.

Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year.

Direct costs include: materials, supplies and other costs that directly go into production of the product.

Project Product Cost and Price Structure In US$

Broilers	21- days	18,000	0.13	0.6	2,340	10,800
per year	216,000	129,600
Total	380,400

Profitability Analysis In US Dollars

Profitability item	per day	per month	per year
Revenue
Layers	804	20,900	250,800
Broilers	415	10,800	129,600
Less Prod & Operating Costs	141	5,065	44,120
Profit	1,078	26,635	336,280

Source of Equipment and Rawmaterials

Equipments can be purchased from the local market and may be imported from Europe, India, South Africa and China. Eggs are generated from the parent stock and imported.

Government Incentives Available

Agriculture equipments, tools and chemicals are duty free on importation.

Metacloud Store - BUSINESS IDEA FOR SETTING UP A CHICKEN HATCHERY

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