Production of poultry meat

Project description

I. SUMMARY of the PROJECT.

Name of project – "construction of poultry farm".

Project location

The project will be implemented on a land area of 47, 6 hectares located in the village _____________________________________________

Project initiator: limited liability company "_________"

The legal form of the project – a limited liability company.

The essence of the project:

The essence of the project lies in the organization of construction during the preparatory period, poultry farms, and the subsequent management of implementation activities products wholesale and retail to the domestic market and foreign buyers.

The aim of the project:

The aim of the project is realization of products of poultry farming. Create farms to partly meet the growing demand for products from Turkey.

After completion of the preparatory period and reaching the project capacity is expected to implement the following volumes of products:

• Turkey meat — 515, 2 tons per year (42, 9 tons per month);
• The offal from the Turkey — 37, 1 ton per year (3, 1 tonnes per month);

More details sales volumes are shown in table 1.1

Table 1.1

Product

Ed. measured.

Per month

A year

The carcass Turkey, wholesale

ton

8, 6

103, 0

The carcass of the Turkey retail

ton

2, 1

25, 8

Turkey meat cut, wholesale

ton

21, 5

257, 6

Turkey meat cut, retail

ton

10, 7

128, 8

Offal of turkeys, wholesale

ton

1, 55

18, 5

Offal of Turkey, retail

ton

1, 55

18, 5

Project type: New construction

Terms and stages of project implementation:

The preparatory period needed to run farms that are planned in the framework of this project, as well as the period prior to the sale of products will be 7 months;

The necessary funds

Taken 1.e. – 37 RUB.

The total cost of the project, with the distribution of expenditure is presented in table 1.2. The cost structure is also presented in diagram 1.3

Table 1.2

The name of the item

Cost,

thousand RUB.e.

Acquisition of fixed assets, including construction costs of infrastructure facilities and basic equipment

121 904, 9/3 294, 7

The funding of direct material costs for production

12 827, 1/346, 7

Financing payroll

4 351, 3/117, 6

Funding for current and other expenses

16 196, 7/522, 5

Total:

155 280, 196 0/4, 8

Evaluation of economic efficiency of the project:

The planning horizon of 7 years;

Payback period – PBP are 4, 54 years of receipt of funds;

Adopted discount rate – D – 10, 32% — real rate comparison.

Discounted payback period – DPBP; — 5, 91 years of receipt of funds;

Net cash flow — 142 623 1 thousand rubles/3 854, 7 thousand.e.;

Net present value – NPV; — 32 733 1 thousand rubles/884, 7 thousand.e.

Internal rate of return – IRR; — 16, 1%

The breakeven point of the project – BEP; — 4 746, 9 thousand RUB./128, 3 thousand.e. per month (50, 2% of the planned volume of sales, on average over the planning horizon, since a year after the beginning of the project).

Term of return of borrowed funds – RP; — 3, 5-year funding availability.

The profitability index of 1, 19

Evaluation of socio — economic efficiency of the project:

Socio – economic effect from the activities of the organisation are obvious:

The new project will provide 39 new jobs.

Implementation of the project generates net cash flow in budgets of all levels calculated for the planning horizon of the project in the amount of 166, 7 million./4, 5 million.e.

Risk assessment of the project.

The risk for the current project is assessed as "medium" and in accordance with expert evaluations of the cumulative method. The risk set at 12, 0%.

The main obstacle to project implementation.

The main obstacles can be the delay of the project, however, the margin of safety in breakeven and sensitivity analysis of the project suggests that the project is still profitable and competitive.