Eco Farm

Project summary

Agro chicken – Eco broiler farm

The farm recommended for purchase is part of a former poultry complex located in the village of Bogdanivka, Kyiv region. The complex has four separate sites (Appendix 1) with six poultry houses each, where poultry was once raised for commercial eggs. Currently, the farm has not been used for more than 10 years.

We propose to buy one of the sites (which has six poultry houses and a warehouse, where a mini feed mill can be built in the future), and convert it for growing broiler meat. To do this, you need to replace the roof, make a flat floor, install heating and equipment.

1 – Purchase of the site – The owner requested $300,000, the site has approximately 3 hectares of land on which there are buildings.

But for the period of distribution of the entire complex and allocation of this area separately, it takes time to prepare documents. To do this, he suggests drawing up a lease agreement with the mandatory purchase of the territory. For the lease period, the rent will not be paid and will not be accrued. If we refuse to buy the territory, we will have to pay the rent specified in the agreement. This gives us the opportunity to postpone the purchase and begin repair work, growing and selling broilers.

2 – Installation of a transformer substation for connection to the power grid, purchase and installation of a diesel generator.

• Transformer Substation – $5,000
• Connection – $1,000
• Diesel generator - $50,000

3 – Water well - $6,000

4 – Roof repair – $300,000. It is proposed to completely replace the entire slate (since it is over 40 years old, it is cracked and does not have proper thermal insulation).

5 – Floor repair – $120,000. It is proposed to level it by removing the protrusions.

6 – Purchase and installation of equipment. (I provide 2 commercial offers from Ukrainian equipment manufacturers – Ventura and Prolisok) approximate price $29,000-40,000

7 – Installation of a solid fuel boiler and connection of a heating system – $30,000

7 – order chickens, feed, start of breeding. $332,000

I suggest that for a faster start, start with 2 poultry houses, and in the meantime repair and prepare the other poultry houses.

Costs and profitability:

The costs for purchasing the territory, repairing the roof and floor, and installing equipment for 6 poultry houses are: $992,000

The costs of purchasing chickens, compound feed, veterinary drugs, firewood for heating, electricity for 6 poultry houses for a growing period of 45-50 days and preparation for a new planting of poultry (cleaning of droppings, washing poultry houses, sawdust on the floor, disinfection of the premises) is: $332,000

The total cost for 6 poultry houses is: $1,325,000

Income for 1 growing batch is: $71,700

$71,700 * 6 growing batches = $430,200 per year

Project payback 2.8 years

Profitability 25.2%

The calculation was made on 1.11.2024.

Profitability may vary due to fluctuations in meat prices