REPUBLIC OF RWANDA

Ministry of Agriculture and Animal Resources

(MINAGRI)

BUSINESS PLAN OF RUBIRIZI HATCHERY

FINAL DOCUMENT

JULY 2012

CONTENTS

REASONS FOR THE RECOVERY OF THE RUBIRIZI HATCHERY AND IMPLEMENTATION OF DECENTRALIZED MINI-HATCHERIES _________________________________________________ 3

1 ASSUMPTIONS ______________________________________________________________ 4

1.1 Rates for Layers ________________________________________________________________ 5

1.2 Rates of Broilers _______________________________________________________________ 6

1.3 Egg consumption _______________________________________________________________ 8

1.4 Others income _________________________________________________________________ 8

1.5 Production forecast: ____________________________________________________________ 8

2 BUSINESS PLAN ____________________________________________________________ 13

2.1 Resources ___________________________________________________________________ 13

2.2 Rubilizi Share Capital __________________________________________________________ 14

2.3 Focus in Private sector shareholders ______________________________________________ 14

2.4 Depreciation Table ____________________________________________________________ 14

2.5 Debt service __________________________________________________________________ 14

2.6 Salaries (*1000) _______________________________________________________________ 15

2.7 Income Account_______________________________________________________________ 16

2.8 Working capital needs _________________________________________________________ 17

2.9 Accounting results _____________________________________________________________ 18

ANNEX: Business Model of Mini Hatchery ___________________________________________ 21

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REASONS FOR THE RECOVERY OF THE RUBIRIZI HATCHERY AND IMPLEMENTATION OF

DECENTRALIZED MINI-HATCHERIES

Four reasons can be advanced:

- Consistency with the decision of public authorities to make the private sector the lever for the development of livestock in Rwanda

- Responsiveness that requires daily management of a hatchery doesn’t fit well with the administrative burden

- Although not having the hatchery's cost accounting information, we can say without doubt that the current management is in deficit; it couldn’t be otherwise with such low fertility and hatching rates. Thus, the state budget subsidizes an activity that could be profitable in the hands of private operators.

- The immense attraction of potential investors for the privatization of the Rubirizi hatchery: the public authorities should have no difficulty in passing the baton to private investors, as their interest is evident. This should be done in Public Private Partnership, with the government retaining ownership of premises and facilities.

Given the complexity of the basic requirements for the management of parent stocks, partnership

should be forged between the recovered National Hatchery and mini-hatcheries: the latter would

thus get rid of the worries associated with maintaining parent stocks, as well as the import of

hatching eggs. The partnership model is illustrated by the figure below:

Figure 1: Rubilizi Hatchery, a major supplier of day old chicks in Rwanda (case of privatization)

Rubilizi will give to mini hatcheries 30 000 fertilized eggs per month (50% Layers, 50% Broilers).

RUBILIZI

Parental stocks import

Parental breeding

Hatching eggs

Rubilizi hatcheryMINI HATCHERIES

Days old chicks

Domestic marketBordering markets

DAYS OLD CHICKS

BREEDING

CHICKENS

(BROILERS AND LAYERS)

POULTRY FARMERS

BREEDING

CHICKENS

(BROILERS AND LAYERS)

Page 4/22

1 ASSUMPTIONS

Assumptions were developed using data:

Provided by the RAB on the cost structure of production and performance rates at the Rubirizi hatchery (Dr Christine KANYANDEKWE, Dr Alphonse NSHIMIYIMANA and Dr Landry Ndriko MAYIGANE)

Available from the firm AFRIQUE EMERGENCE CONSEIL (data on business plans in the EAC region and WAEMU).

The current hatchery patrimony (buildings and equipment) is estimated at 300 000 000 RWF. With the privatization of Rubirizi hatchery, there will be an opening up of capital to the private sector and the latter will be the majority shareholder with 70% against 30% for the Rwandan government. The contribution of private sector capital will be done in two ways: a fluid intake amounting to 200 million RWF and a bank loan of 487 850 666 RWF. The interest rate used is 15% that is commonly applied in Rwandan banks . Reimbursement will be made over 5 years. There will be a grace period of 2 years.

This amount of money will be a boost to the hatchery enabling an upgrade to:

- The requirements and biosecurity requirements (farm modernization for parent stock breeding, food storage silos, water system and insulation)

- Turn into a profit-oriented company.

Investments scheduled are the compliance of local areas and the extension of the parent stock farming system. Vehicles and motorbikes for the hatchery staff, a water tank with a capacity of 4000L and a new incubator of 60 000 pcs will be purchased.

The hatchery will ensure the supply of 150,000 DOCs per month at the national level (41% of the local market) to substitute for imports from Uganda, Kenya and significantly reduce imports from Belgium. Thus, it is planned to buy a feed mixer to prepare the poultry feed ingredients, waiting for the feed industry to emerge. The hatchery will also have software for the monitoring of all operations.

The hatchery privatized team will consist of:

- A CEO - A DVM, Head of Operations assisted by

o 2 Animal technicians o 6 foremen in charge of conducting process

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o 5 Disinfection and Cleaning Agents - A Finance Manager Accounting - A Head of Maintenance assisted by two Maintenance chiefs - A Marketing Manager assisted by a Sales Agent - 1 Messenger

1 keeper

The following production assumptions are used:

2013 2014 2015 2016 2017

Total DOCs per month 89 473 119 477 149 455 149 455 149 455

1.1 Rates for Layers

The layers will represent 60% of all sales.

Mortality rate

Starter 0%

Growth 5%

Laying period 14%

Hatching rate

Laying period 12 months

Average laying rate 65%

Incubation rate 85%

Hatching rate 60%

Number of chicks(female) for sale sex ratio 50%

Price LAYERS fertilized Eggs (RWF) (15000 per month) 200

Price per LAYER chicks (RWF) 700

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Feed consumption

Steps Kg per day and chick Number of days

Starter 0,08 60

Growth 0,09 90

Layer 0,13 250

It is estimated that from the 3 rd year, the overall performance will improve due to effective mastery of biosecurity and costs. The production parameters will be as follows:

Mortality ratio

Starter 0%

Growth 5%

Layer 7%

Hatching rate

Average laying rate 70%

Incubation rate 85%

Hatching rate 75%

1.2 Rates of Broilers

Broilers will represent 40% of the sales.

Mortality ratio

Starter 0%

Growth 5%

Layer 12%

Hatching rate

Laying period 12 months

Average laying rate 53%

Incubation rate 80%

Hatching rate 65%

Page 7/22

Expected production

Period of eggs production (days) 360

Number of chicks(female) for sale sex ratio 85%

Price BROILERS Fertilized Egg for mini hatcheries (15000 per month) 150

Price per BROILERS chicks (RWF) 500

Feed consumption

Steps Kg per day and

chick Number of days

Starter 0,08 60

Growth 0,09 90

Layer 0,13 250

It is estimated that from the 3rd year, overall performances will improve due to a better mastery of biosecurity and costs. The production performances will be as follows:

Mortality ratio

Starter 0%

Growth 5%

Layer 9%

Hatching rate

Average laying rate 70%

Incubation rate 85%

Hatching rate 70%

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1.3 Egg consumption

There will be 10% of the eggs not suitable for incubation for the whole production. Those eggs will be sold at RWF 50 unit.

1.4 Others income

Manure

Spent parent stock layers (Old birds)

1.5 Production forecast:

2 013 2 014 2 015 2 016 2 017

Layers

Parental stock 13 800 18 000 15 400 15 400 15 400

DOCs per month 54 347 72 257 90 243 90 243 90 243

Ratio

Broilers

Parental stock 7 000 8 950 7 050 7 050 7 050

DOCs per month 35 126 47 220 59 212 59 212 59 212

Total DOCs per month 89 473 119 477 149 455 149 455 149 455

Ratio Layers 61% 60% 60% 60% 60%

Ratio Broilers 39% 40% 40% 40% 40%

Page 9/22

Layers Production forecast

OUTCOMES 2013 2014 2015 2016 2017

Parental stocks Layers 13 800 18 000 15 400 15 400 15 400

Parental stocks purchase Layers 74 520 000 97 200 000 83 160 000 83 160 000 83 160 000

Feeding Layers 83 165 120 197 642 145 224 330 714 212 741 760 212 741 760

First Brand (13800)Starter 23 184 000 Growth 33 981 120 Layer

123 078 945

Second Brand (18000) Starter

30 240 000 Growth

44 323 200

Layer

160 537 754 Third Brand (15400) Starter

25 872 000

Growth

37 920 960 Layer

148 948 800

Fourth Brand (15400) Starter

25 872 000 Growth

37 920 960

Layer

148 948 800

Fith Brand (15400) Starter

25 872 000

Growth

37 920 960

Layer Old Parents Stock (2500) End of

layer Layer 26 000 000 Vaccine and medicine Layers 4 319 494 5 634 122 4 820 304 4 820 304 4 820 304

Heating 7 487 566 9 766 390 8 355 690 8 355 690 8 355 690

Production material for Layers 9 905 218 12 919 849 11 053 649 11 053 649 11 053 649

Cleaning Material for Layers 2 542 653 3 316 503 2 837 453 2 837 453 2 837 453

Packaging DOCs 9 782 482 13 006 280 16 243 720 16 243 720 16 243 720

Packaging Eggs for hatching (OAC) 2 250 000 2 250 000 2 250 000 2 250 000 2 250 000

Packaging for egg consumption (Cells) 3 461 595 4 515 124 4 511 430 4 511 430 4 511 430

Water (500 RWF/head) 6 900 000 9 000 000 7 700 000 7 700 000 7 700 000

Energy (1500 RWF/ head) 20 700 000 27 000 000 23 100 000 23 100 000 23 100 000

Page 10/22

INCOMES 2013 2014 2015 2016 2017

Production Egg for hatcheries 180 000 180 000 180 000 180 000 180 000

Price Eggs for hatcheries 150 150 150 150 150

Amount Eggs for hatcheries 27 000 000 27 000 000 27 000 000 27 000 000 27 000 000

Production DOCs 652 165 867 085 1 082 915 1 082 915 1 082 915

Price DOCs 700 700 700 700 700

Amount DOCs 456 515 813 606 959 756 758 040 255 758 040 255 758 040 255

Production Egg for consumption 276 928 361 210 360 914 360 914 360 914

price Eggs for consumption (RWF) 50 50 50 50 50

Amount Eggs for consumption 13 846 381 18 060 497 18 045 720 18 045 720 18 045 720

Sales of old parental stocks 2500 11 835 15 436 14 322 14 322

Price (1500 *1,5 kg) 2250 2250 2250 2250 2250

Amount Sales of old parental stocks 5 625 000 26 627 656 34 731 726 32 224 500 32 224 500

Sales of Manure (150 000 RWF/week) 7 200 000 9 391 304 8 034 783 8 034 783 8 034 783

Page 11/22

Broilers Production forecast

2013 2014 2015 2016 2017

Parental stocks Broilers

7 000 8 950 7 050 7 050 7 050

Parental stocks purchase Broilers

37 800 000 48 330 000 38 070 000 38 070 000 38 070 000

Feeding Broilers 54 996 800 101 319 606 111 345 903 95 925 120 95 925 120

First Brand (7000) Starter

11 760 000

Growth 17 236 800

Layer 64 245 126

Second Brand (8950) Starter

15 036 000

Growth 22 038 480

Layer 82 141 983

Third Brand (7050) Starter

11 844 000

Growth 17 359 920

Layer 66 721 200

Fourth Brand (7050) Starter

11 844 000

Growth 17 359 920

Layer 66 721 200

Fifth Brand (7050) Starter

11 844 000

Growth 17 359 920

Layer

Old Parents Stock (2500) End of layer

26000 000

Vaccine and medicine Broilers

2 884 158 3 687 602 2 904 759 2 904 759 2 904 759

Heating 5 259 862 6 725 110 5 297 433 5 297 433 5 297 433

Production material for Broilers

6 349 823 8 118 702 6 395 178 6 395 178 6 395 178

Cleaning Material for Broilers

1 298 894 1 660 728 1 308 172 1 308 172 1 308 172

Packaging DOCs 6 322 706 8 499 590 10 658 236 10658 236 10658 236

Packaging Eggs for hatching (OAC)

2 250 000 2 250 000 2 250 000 2 250 000 2 250 000

Packaging for egg consumption (Cells)

1 473 314 1 883 737 2 020 883 2 020 883 2 020 883

Water (500 RWF/head)

3 500 000 4 475 000 3 525 000 3 525 000 3 525 000

Energy (1500 RWF/ head)

10 500 000 13 425 000 10 575 000 10 575 000 10 575 000

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2013 2014 2015 2016 2017

Production Egg for hatcheries 180 000 180 000 180 000 180 000 180 000

Price Eggs for hatcheries 200 200 200 200 200

Amount Eggs for hatcheries 36 000 000 36 000 000 36 000 000 36 000 000 36 000 000

Production DOCs 421 514 566 639 710 549 710 549 710 549

Price DOCs 500 500 500 500 500

Amount DOCs 210 756 864 283 319 670 355 274 530 355 274 530 355 274 530

Production Egg for consumption 117 865 150 699 161 671 161 671 161 671

price Eggs for consumption (RWF) 50 50 50 50 50

Amount Eggs for consumption 5 893 255 7 534 947 8 083 530 8 083 530 8 083 530

Sales of old parental stocks 2500 6 177 7 898 6 416 6 416

Price (1500 *1,5 kg) 2250 2250 2250 2250 2250

Amount Sales of old parental stocks 5 625 000 13 899 186 17 771 102 14 434 875 14 434 875

Sales of Manure (150 000 RWF/week) 7 200 000 9 205 714 7 251 429 7 251 429 7 251 429

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2 BUSINESS PLAN

2.1 Resources

project components Value (RWF)

* Buildings 250 000 000

Buildings 250 000 000

* Construction 500 000 000

upgrading 500 000 000

* Materials 102 000 000

2 Incubator machines of La Nationale label: each one19008 pcs *2= 38016 pcs 8 000 000

2 Hatchers of La Nationale label ; 4750 pcs*2= 9500 pcs 6 000 000

1 incubator machine ( 3 compartments): 57500 pcs 3 000 000

1 Hatcher: 20000 pcs 8 000 000

1 Hatcher: 25000 pcs 10 000 000

3 small scale incubator/Hatcher machines: 4576 pcs*3= 13 728 pcs 10 000 000

3 generators of 5 KVA, 1 generator of 65 Kva 5 000 000

Tank of water (4000l) 8 000 000

2 new fridges 2 000 000

Poultry feed mixer 2 000 000

1 new incubator: 60 000 pcs 40 000 000

Vehicle 69 000 000

Mitsubishi L 200 (3) 60 000 000

Scooters (7) 9 000 000

0

Computer hardware and software 6 000 000

Office furniture 0

Total investment 927 000 000

Miscellaneous and unforeseen 9 270 000

Working Capital needs 51 580 666

Cost of project 987 850 666

Page 14/22

2.2 Rubilizi Share Capital

Public Share 300 000 000 30%

Private sector Share 687 850 666 70%

2.3 Focus in Private sector shareholders

Contribution in cash of 40 shareholders 5 000 000 200 000 000 29%

Rwanda Banks Loan 487 850 666 71%

2.4 Depreciation Table

Loan amount 487 850 666

Rate of interest 15% Value date 2013 Grace period (years) 2 Reimbursement (year) 5

2.5 Debt service

Deadline

Outstanding amounts at beginning of

period

Interests with all taxes included

Principal Reimbursed

Amount due

Outstanding amounts at end

of period

2012 487 850 666 0 487 850 666

2013 487 850 666 14 635 520 0 14 635 520 487 850 666

2014 487 850 666 14 635 520 97 570 133 112 205 653 390 280 533

2015 390 280 533 11 708 416 97 570 133 109 278 549 292 710 400

2016 292 710 400 8 781 312 97 570 133 106 351 445 195 140 266

2017 195 140 266 5 854 208 97 570 133 103 424 341 97 570 133

2018 97 570 133 2 927 104 97 570 133 100 497 237 0

58 542 080 487 850 666 546 392 746

Page 15/22

2.6 Salaries (*1000)

Nber Salary per employee

Monthly pay

Total payroll

per year

Social charges

2013 2014 2015 2016 2017

DG 1 2 000 2 000 24 000 1 200 25 200 25 200 25 200 25 200 25 200

Vet Doctor 1 1 000 1 000 12 000 600 12 600 12 600 12 600 12 600 12 600

Vet technician 2 2 500 1 000 12 000 600 12 600 12 600 12 600 12 600 12 600

Maintenance technician 1 1 500 500 6 000 300 6 300 6 300 6 300 6 300 6 300

Maintenance technician 2 2 300 600 7 200 360 7 560 7 560 7 560 7 560 7 560

Poultry House Aide (10) 10 250 2 500 30 000 1 500 31 500 31 500 31 500 31 500 31 500

Marketing Manager 1 800 800 9 600 480 10 080 10 080 10 080 10 080 10 080

Saler 1 500 500 6 000 300 6 300 6 300 6 300 6 300 6 300

Financial Agent 1 600 600 7 200 360 7 560 7 560 7 560 7 560 7 560

Planton 1 50 50 600 30 630 630 630 630 630

Cleaning Team 6 50 300 3 600 180 3 780 3 780 3 780 3 780 3 780

Security staff 3 50 150 1 800 90 1 890 1 890 1 890 1 890 1 890

Total 30 6 600 10 000 120 000 6 000 126 000 132 300 138 915 145 860.7 153 153.8

An inflation rate of 1.05 is applied over salaries annually.

Page 16/22

2.7 Income Account

2013 2014 2015 2016 2017

Depreciation 79 900 000 79 900 000 59 900 000 65 500 000 64 700 000

Salaries 126 000 000 132 300 000 138 915 000 145 860 750 153 153 788

Layers

Parental Stock 74 520 000 97 200 000 83 160 000 83 160 000 83 160 000

Vaccines and medicines 4 319 494 5 634 122 4 820 304 4 820 304 4 820 304

Heating 7 487 566 9 766 390 8 355 690 8 355 690 8 355 690

Production material 9 905 218 12 919 849 11 053 649 11 053 649 11 053 649

Cleaning material 2 542 653 3 316 503 2 837 453 2 837 453 2 837 453

Packaging DOCs 9 782 482 13 006 280 16 243 720 16 243 720 16 243 720

Packaging Eggs for Hatching 2 250 000 2 250 000 2 250 000 2 250 000 2 250 000 Packaging Eggs for Consumption 3 461 595 4 515 124 4 511 430 4 511 430 4 511 430

Feeding 83 165 120 197 642 145 224 330 714 212 741 760 212 741 760

Broilers

Parental Stock 37 800 000 48 330 000 38 070 000 38 070 000 38 070 000

Vaccines and medicines 2 884 158 3 687 602 2 904 759 2 904 759 2 904 759

Heating 5 259 862 6 725 110 5 297 433 5 297 433 5 297 433

Production material 6 349 823 8 118 702 6 395 178 6 395 178 6 395 178

Cleaning material 1 298 894 1 660 728 1 308 172 1 308 172 1 308 172

Packaging DOCs 6 322 706 8 499 590 10 658 236 10 658 236 10 658 236

Packaging Eggs for Hatching 2 250 000 2 250 000 2 250 000 2 250 000 2 250 000 Packaging Eggs for

Consumption 1 473 314 1 883 737 2 020 883 2 020 883 2 020 883

Feeding 54 996 800 101 319 606 111 345 903 95 925 120 95 925 120

Water 10 400 000 13 475 000 11 225 000 11 225 000 11 225 000

Energy 31 200 000 40 425 000 33 675 000 33 675 000 33 675 000

Fuel for car 3 000 000 3 090 000 3 182 700 3 278 181 3 376 526

Fuel for Generator 4 200 000 4 326 000 4 455 780 4 589 453 4 727 137

Total Management fees 28 529 312 30 550 524 32 442 511 33 166 034 33 941 357

Stationaries 6 600 000 6 798 000 7 001 940 7 211 998 7 428 358

Insurance 1 000 000 1 000 000 1 000 000 1 000 000 1 000 000

Marketing 3 878 312 5 189 994 6 351 165 6 321 948 6 321 948

Vehicle maintenance 7 711 000 7 942 330 8 180 600 8 426 018 8 678 798

Phone fees and internet 6 000 000 6 180 000 6 365 400 6 556 362 6 753 053

Certification of accounts 840 000 865 200 891 156 917 891 945 427

Stamps 2 000 000 2 060 000 2 121 800 2 185 454 2 251 018

Others tax and fees 500 000 515 000 530 450 546 364 562 754

Total outcomes 599 298 995 832 792 013 821 609 514 808 098 204 815 602 593

Page 17/22

2013 2014 2015 2016 2017

Layers 510 187 194 688 039 214 845 852 483 843 345 258 843 345 258

Eggs for hatcheries 27 000 000 27 000 000 27 000 000 27 000 000 27 000 000

DOCs 456 515 813 606 959 756 758 040 255 758 040 255 758 040 255

Egg for consumption 13 846 381 18 060 497 18 045 720 18 045 720 18 045 720

Old Parental destock 5 625 000 26 627 656 34 731 726 32 224 500 32 224 500

Manure 7 200 000 9 391 304 8 034 783 8 034 783 8 034 783

Broilers 265 475 119 349 959 517 424 380 590 421 044 363 421 044 363

Eggs for hatcheries 36 000 000 36 000 000 36 000 000 36 000 000 36 000 000

DOCs 210 756 864 283 319 670 355 274 530 355 274 530 355 274 530

Egg for consumption 5 893 255 7 534 947 8 083 530 8 083 530 8 083 530

Old Parental destock 5 625 000 13 899 186 17 771 102 14 434 875 14 434 875

Manure 7 200 000 9 205 714 7 251 429 7 251 429 7 251 429

Total incomes 775 662 313 1 037 998 731 1 270 233 074 1 264 389 621 1 264 389 621

2.8 Working capital needs

2011 2012 2013 2014 2015

Purchase Parental, packaging and others inputs

49 941 583

69 399 334

68 467 459

67 341 517

67 966 883

Total

49 941 583

69 399 334

68 467 459

67 341 517

67 966 883

Page 18/22

2.9 Accounting results

TOTAL OUTCOME 618 967

995 867 113 603 845 948 686 828 528 382 833 124 320

TOTAL INCOME 775 662

313 1 037 998

731 1 270 233

074 1 264 389

621 1 264 389

621

PROFIT BEFORE TAX

156 694

319 170 885 128 424 284 388 435 861 239 431 265 301

CORPORATE TAX 30%

47 008 296 51 265 538 127 285 316 130 758 372 129 379 590

NET PROFIT 109 686

023 119 619 589 296 999 071 305 102 867 301 885 711

CASH FLOW

208 686 023

218 619 589 365 999 071 378 702 867 374 685 711

NET PRESENT VALUE (NPV)

63 233 868 RWF

0

200 000 000

400 000 000

600 000 000

800 000 000

1 000 000 000

1 200 000 000

1 400 000 000

1 600 000 000

2013 2014 2015 2016 2017

270 178 862

481 145 108

769 227 547

1 011 131 031

1 533 669 489

Trends of Liquidity

Page 19/22

Trends of Equity Capital and loan

Trends of Revolving Fund, Working capital Needs and Liquidity

Trends of Total outcome and total income

488 488

390293

195

662781

1 078

1 383

1 685

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2013 2014 2015 2016 2017

Mil

lio

ns

Loan

352

600

862

1 100

1 624

81 119 93 8990

270

481

769

1 011

1 534

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2013 2014 2015 2016 2017

Millio

ns

Revolving Fund

Working Capital Needs

Liquidity

Page 20/22

CONCLUSION

The privatization of national hatchery is a guarantee of profitability

619

867 846 829833

776

1 038

1 2701 264

1 264

2013 2014 2015 2016 2017

TOTAL OUTCOME TOTAL INCOME

Page 21/22

ANNEX: Business Model of Mini Hatchery

Assumption Current situation: purchase of parental stock from Belgium Forecast situation:

Step N°1: Purchase of fertilized eggs from Rubilizi (150 RWF per egg)

Step N°2: Purchase of fertilized eggs from Rubilizi and improvement of performance hatching rate from the third year (see page 92).

CURRENT SITUATION

SITUATION WITH PURCHASE FERTILIZED EGGS IN RUBILIZI

SITUATION WITH PERFORMANCE IMPROVMENT

OUTCOME Parental stocks Layers 270 0 0

Parental stocks purchase Layers 1 458 000

7 920 000 (purchase of Fertilized Eggs)

7 920 000 (purchase of Fertilized Eggs)

Feeding Layers 3 526 514 - -

Brand Starter 453 600 Growth 664 848 Layer 2 408 066 Vaccine and medicine

Layers 84 512 - -

Charcoal or Gas Layers 146 496 - -

Production material for Layers 193 798 193 798 193 798

Cleaning Material for Layers 49 748 49 748 49 748

Packaging DOCs 136 080 237 600 297 000

Packaging Eggs for hatching (OAC) - - -

Packaging for egg consumption (Cells) - - -

Water (250 RWF/heads) 67 500 67 500 67 500

Energy (750 RWF/ heads) 202 500 212 625 212 625

Salaries 300 000 315 000 330 750

Page 22/22

INCOME CURRENT

SITUATION SITUATION WITH PURCHASE FERTILIZED EGGS IN RUBILIZI

SITUATION WITH PERFORMANCE IMPROVMENT

Production DOCs 9 072 15 840 19 800

Price DOCs 800 700 700

Amount DOCs 7 257 600 11 088 000 13 860 000

Price of sale DOCs: 700 RWF (discount: 100 RW per chick)

INCOMES 7 257 600 11 088 000 13 860 000

OUTCOMES 6 165 147 8 996 270 9 071 420

BALANCE 1 092 453 2 091 730 4 788 580

MARGIN (RWF per chick) 120 132 242

Price of sale DOCs: 800 RWF (current situation)

INCOMES 7 257 600 12 672 000 15 840 000

OUTCOMES 6 165 147 8 996 270 9 071 420

BALANCE 1 092 453 3 675 730 6 768 580

MARGIN (RWF per chick) 120 232 342

CONCLUSION: Buying fertilized eggs to the Rubilizi private hatchery will be more profitable for mini hatcheries.