COLLEGE OF BUSINESS AND ECONOMICS

Department of Accounting and Finance Postgraduate Program

Business Process Title: Production cycle on poultry Production

in Case of Jinka University, Business development Directorate

Submitted by: Tsega denekew ID.No:____

Mob: +251916799431 Sign: ___

Submitted to: Department of Accounting and Finance Postgraduate Program

Jinka, Ethiopia

March, 2024
Contents
1. Body and context .................................................................................................................................. 1
2. Relevant Activity ................................................................................................................................... 2
2.1 Market Analysis ............................................................................................................................. 2
2.2 Project Management ..................................................................................................................... 2
2.3 Organizational Structure ..................................................................................................................... 2
2.4 Competitors Analysis .................................................................................................................... 3
3 Relationship with General Ledger and Reporting System..................................................................... 3
3.1 Control Objectives, Threats, and Procedures ...................................................................................... 4
3.1.1 Control Objectives:- ..................................................................................................................... 4
3.1.2 Threats: ........................................................................................................................................ 4
3.1.3 Procedures: .................................................................................................................................. 4
4. Summary ............................................................................................................................................... 5
5. Reference .............................................................................................................................................. 5

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 1. Body and context
Poultry production is a farm focused on both egg and meat production that provides for a large
market range. Poultry production also produces manure as a by-product. Poultry production
describes that the health implication of red meat and are creating a business to meet the increased
demand for white meat and eggs. Chickens happen to be a great source of white meat and are
also largely known for egg productions and have high quality in red meat production.

The persons who have come together to start this business are interested in meeting the demands
of the customer, but also plan to create at most satisfaction for these customers. The founders
poultry production also want to use this business as a means of creating employment within the
community it is based in and to contribute to the economy of the country. We plan on provide
products with quality and maintain this supply efficiently. This is a partnership business that
plans on distributing eggs and chicken to restaurants, home delivery food centers, hotels,
schools, clubs, bakery and catering businesses and supermarkets. Poultry production also plan on
doing this at very affordable prices. We will also distribute manure to farmers that are into crop
production.

This business plan is meant to articulate the vision and future of our poultry, and to appeal to
investors and external stakeholders to get involved in this business and help with its funding as it
is a capital intensive business. We also hope that it will serve as a guideline for the firm’s
employees to move towards the goal of the poultry. Not only do we offer products, but we offer
services as well. We plan on providing home delivery services to customers who order a certain
amount of products. This offer will mostly be used by the section of our target market that uses
eggs in large quantities like schools and bakeries.

Poultry Production site needs plenty open space, cheap labors, road connection, water availability
and immediate access to markets, so all this factor is considered when planning the business. A
house with suitable house will be rented for the storage of pellets, equipment’s as well as for the
employees to guard the farm. Revenue for this will be gotten from contributions from each partner.
Investment in this business shall be allocated to the following purposes: buying chickens, building
cage house, stocking the pellets, hiring the experts and other miscellaneous tasks. Fifty percent
gross margin is expected within 6 months of its operations withholding the chances of any
accidental or unexpected incidence and we hope to obtain the breakeven point within 2 years. We
have considered the risks, financial, health and technology wisely.

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 2. Relevant Activity

2.1 Market Analysis

Poultry production offer chicken eggs and chicken meat that will be gotten from layers and
broilers to our target market. Poultry production takes pride in the uncompromising quality of
our products. Poultry production also offers fertilizer in form of chicken manure. This is mostly
used in vegetable farming and as an ingredient for feed in fish farming. Poultry production shall
produce high quality, contaminant-free chickens and the freshest eggs to satisfy the taste of
beloved costumers. The products shall be distributed into a number of distributors -
supermarkets, public markets, bakeries, restaurants and in the company’s own retail space for
easy access for marketing agents and consumers. In brief our products are; 3
Main products
Eggs
Live chickens
By-products
Chicken droppings

2.2 Project Management

Poultry production industry has shown dramatic changes in both domestics and international
environments. Those environmental forces include are classified into two categories: the internal
forces and external forces. Internal and external forces include:
1. Poultry industry competitors: When the company have few competitors, it is more likely to get
more profit.
2. Supplier dynamics: Suppliers of raw materials to the poultry companies are the ones the affect
the costs of poultry products. If there is development of new market and technology, the price of
raw materials will remain low.
3. Opportunities: there are many opportunities in poultry industry. The first opportunity is that
there is small number of large scale poultry farmers, and the other ones are small scale business
farmers. So this will make businessmen to vertically integrate in the poultry business.

2.3 Organizational Structure

1. Chief Executive Officer (CEO) as the top manager which is typically responsible for the entire
operations of the poultry. It is his responsibility to implement decisions and initiatives and to
maintain the smooth operation of the poultry, with the assistance of the management team.
2. Chief Operational Officer (COO) looks after issues related to marketing, sales, production and
personnel. More hands-on than the CEO, the COO looks after day-to-day activities while providing
feedback to the CEO.
3. Chief Financial Officer (CFO) Also reporting directly to the CEO, which is responsible for analyzing
and reviewing financial data, reporting financial performance, preparing budgets and monitoring
expenditures and costs. The CFO routinely checks the corporation's financial health and integrity.

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4. Chief Information Officer (CIO): reports directly to the CEO and is a more internally oriented
person focused on technology needed for running the poultry production. CIO is also in charge of
the web designs of the poultry farm product.
5. Chief Revenue Officer (CRO) responsible for all revenue generation processes in an organization,
and is ultimately accountable for driving better integration between all revenue-related areas.
6. Chief Visionary Officer (CVO) decides on the general direction of a company, and has a broad
and comprehensive knowledge of all matters related to the business of the organization and the
vision required to steer its course into the future. The CVO is generally in charge of defining
corporate strategies, working plans, and often product ideas

CEO

COO CVO CFO CIO

CRO

Chart of the organization Structure

2.4 Competitors Analysis

Competition is not so keen in the markets, however it still exists. The reasons are;
Poultry products are not branded products; hence what usually matters is effective positioning
and timing.
Poultry market is not crowded; it’s a seller’s market.
Most poultry produce are sold through informal channels. Competition is usually found within
local products and imported ones.

Poultry farm production market competitors include those who sell meat and fish. Although those
competitors are available, a large number of quantitative quality product still lacking essential food
components, which are proteins.

3 Relationship with General Ledger and Reporting System

The price of the chicken would range from minimum up to maximum ranges depending on the
size and quality. These prices would also vary depending on the existing market price of poultry
meat and eggs. As we compete with other poultries, we will promote our products through
advertisements with the aid of streamers and pamphlets. We can also make our business known

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through recommendations and connections with well-known businessmen in the locality. We
will also make our products and service known in the newspapers. We have created a website too
to let the consumers know of our business.


Insurance payments covering both general liability and product liability,
Rent for the company retail space
Area of about one plot will be allocated for the farm;
A house will be rented for the storage of pellets;
Materials for office and store furniture, shelving, a computer, phone system, and tools.
Long-term assets including the refrigerator unit for the shop, window displays a
refrigerated delivery van.

3.1 Control Objectives, Threats, and Procedures

3.1.1 Control Objectives:-
Poultry production will measure its success by its ability to achieve the following objectives:
 Becoming the "Best and most hygienic poultry producer in the area" fulfilling by the
national standards for food and drugs.
 Turn in profits from the production with stated period of time.
 Winning the hearts and tastes of our beloved consumers and establishing a brand image
of the production through heavy marketing campaigns in future.
3.1.2 Threats:
Poultry farming has some threats that need to be attended to with vigor. Below are some of the
common challenges that are faced by poultry farmers:
Death of chickens: In poultry, one or many chickens usually die because of their fragile nature
and the weather they are living in. Some factors such as heat and overcrowding causing that
death can be controllable.
Diseases: Pneumonia and other minor diseases are among problems faced by poultry farmers,
but this problem can be solved by seeking a veterinary doctor.

3.1.3 Procedures:

3.1.3.1 Keys to success poultry production

Poultry production will follow these principles in order to achieve success in its market:
 State of art cage framework accommodating optimum number of chickens with lessened
possible hazards.
 Diverse slaughters network, market chain management, and optimum inventory level and
‘customer is king’ policy.
 Regular visits by veterinary medical workers and hygienic poultry house environment.

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3.1.3.2 Poultry industry competitors:
When the company have few competitors, it is more likely to get more profit. For example in
Nigeria, competition is today driven by a cost of manufacturing and the quality of products sold
to the customers.

3.1.3.3 Opportunities:
There are many opportunities in poultry industry. The first opportunity is that there is small number
of large scale poultry farmers, and the other ones are small scale business farmers. So this will make
businessmen to vertically integrate in the poultry business.

4. Summary
Poultry Production site needs plenty open space, cheap labors, road connection, water
availability and immediate access to markets, so all this factor is considered when planning the
business. A house with suitable house will be rented for the storage of pellets, equipment’s as
well as for the employees to guard the farm. Revenue for this will be gotten from contributions
from each partner. Investment in this business shall be allocated to the following purposes:
buying chickens, building cage house, stocking the pellets, hiring the experts and other
miscellaneous tasks. Fifty percent gross margin is expected within 6 months of its operations
withholding the chances of any accidental or unexpected incidence and we hope to obtain the
breakeven point within 2 years. We have considered the risks, financial, health and technology
wisely. Poultry production offer chicken eggs and chicken meat that will be gotten from layers
and broilers to our target market. Poultry production takes pride in the uncompromising quality
of our products.

5. Reference
DESTA, D., MILLION, T., ALEMU, Y. and PETERS, K.J. (2003c) Village chicken production
systems in Ethiopia: 2. Use patterns and performance valuation and chicken products and socio-
economic functions of chicken.

UNDP (2009) Human Development Report ‘Human Development Indices - A statistical update
2008’. United Nations Development Programme: New York.WBISPP (2003).

Tigray Regional State: A Report on the Natural Grazing Lands and Livestock Feed Resources
(First Draft). Woody Biomass Inventory and Strategic Planning Project: Addis Ababa. [and other
papers in the series for other Regions].

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SHEWAYE MARIYA, VAN DORLAND, A. and ROWLANDS, J. (2004) Design, execution
and analysis of the livestock breed survey in Oromiya Regional State, Ethiopia. Oromiya
Agricultural Development Bureau and International Livestock Research Institute: Addis Ababa,
Ethiopia.

ALEXANDER, D.J. (2004) Technology Review: Newcastle disease with special emphasis on its
effect on village chickens. Food and Agriculture Organization: Rome