Rabbit Farm Farm Business Plan

* The calculations use the average data for the World

1. SUMMARY OF THE PROJECT

This business plan discusses the creation of a rabbit farm with the goal of profit from the sale of meat and fur raw materials. Breeding rabbits will be organized in rural areas, on the territory of their own land area of ​​1000 square meters. meters. Farm productivity will be up to 1000 heads / year. Californian meat rabbits will be raised on the farm. Advantage of a rabbit farm project:

  • beneficial properties of meat (considered dietary, easily digestible, does not cause allergies);

  • high rabbit productivity: the younger generation grows up every 3 months;

  • low starting investment regarding breeding of other agricultural animals;

  • lack of serious farm maintenance efforts (one employee is enough).

Starting capital for the opening of the farm will be 635, 500 rubles. The annual farm turnover is 920 thousand rubles, net profit (per year) - 549 thousand rubles. Return on sales - 59%. The conditional life of the project is 3 years. Payback period - 18 months.

2. DESCRIPTION OF THE INDUSTRY AND COMPANY

The history of rabbit breeding as an industry in our country began in 1927, when, by decree of the USSR government, about 15 thousand thoroughbred rabbits from Europe were brought into the western republics. By 1961, the USSR became one of the world leaders in rabbit breeding: 56.7 million rabbit skins and 41.2 thousand tons of live weight were harvested. 95% of the country's production was provided by previously popular domestic rabbit breeding, and about 400 farms provided breeding stock to the population. The collapse of the USSR led to the almost complete disappearance of rabbit breeding as an industry. Most enterprises closed, and it became unprofitable to breed rabbits on an industrial scale. Now the breeding of rabbits is gradually reviving, and the volume of production is gradually growing. According to the expert-analytical center “AB-Center”, the volume of rabbit meat production over the five years increased by 21.5% and amounted to 17.5 thousand tons, of which a large share is occupied by households, which account for 13.5 thousand tons products. The highest growth rates are demonstrated precisely by the commodity sector, the volumes of which grew by 60% over five years. The livestock is growing, respectively. According to the Federal State Statistics Service, the number of rabbits in Russia since the beginning of the 2000s has more than doubled and exceeded the indicators of the 1990s (see Fig. 1).

Figure 1. Dynamics of the number of rabbits in Russia in farms of all categories (1990 - 2015). Rosstat

Most of the rabbit population, according to the end of 2015 (see Fig. 2 of the business plan), falls on households - 82.8%. The share of agricultural organizations is 11.3%, IP and peasant farms own 5.79% of the livestock.

Figure 2. Dynamics of the number of rabbits in Russia by type of household (1990-2015). Rosstat

Industry experts emphasize that the domestic rabbit market is in its infancy and demand will continue to grow over time. Unsatisfied demand, according to rough estimates, exceeds 320 thousand tons. If we take today's production volumes, it turns out that for every Russian there is only 119 grams of rabbit meat per year, while Europeans eat 2 kg of rabbit meat per year.

After the collapse of the USSR, most of the production began to come from abroad. Nevertheless, the share of imports began to decline every year. If in 2006 it was 97.2%, then in 2010 - 72.2%. In 2015, after the devaluation of the ruble and the imposition of sanctions, the share of imports is estimated at about 9%. This situation aroused the interest of large business - in the near future several large players are expected to appear on the Russian market, who will be able to close the unmet demand that has formed after the disappearance of products from Hungary and China from the shelves.

Despite the increase in the share of large players, the market is far from saturated, therefore, the business of medium and small sized farms will for a long time be an actual direction in entrepreneurship. Unlike large companies, they work for local demand: they are not allowed to enter large retail chains due to low volumes of production. In addition, the main method used for keeping rabbits for them is open keeping using sheds, while large enterprises use closed keeping, automatic systems for maintaining the microclimate, supplying water and feed, and removing manure.

The farm planned for opening will work on the most common Sheda technology today, the use of which is justified by the small planned production volume and low cost of creation. The farm will be opened in the countryside, on its own land area of ​​1000 square meters. meters. The area of ​​the sheds will be 360 ​​square meters. meters (3 sheds) and will allow you to get up to 1000 young animals per year (up to 1000 skins and about 2000 kg of meat).

The business will be registered as an individual entrepreneur. For breeding, pedigree young animals in the amount of 100 goals will be purchased. Since the main income of the farm will be meat, preference is given to the California meat breed. This breed is characterized by high productivity, survival of young animals and unpretentiousness.

The meat is planned to be sold to owners of outlets in meat markets. The average price for a carcass will be 400 rubles, which today is the average price in the market. As additional sources of income will be the sale of rabbit skins at 40 rubles / carcass. It is also possible to sell waste left after slaughtering rabbits (rabbit ears, vermicompost, etc.).

Starting investments in the opening of the farm will amount to 636.5 thousand rubles. Source - own funds. Start-up items will include the costs of creating sheds, purchasing pedigree young animals and more. More details of starting costs are given in Table. 1 business plan.

Table 1. Investment costs of the project

No.

NAME

AMOUNT, rub.

Creating Sheds

one

Creating sheds (building materials, site arrangement)

242, 000

Equipment

2

Utility room equipment

100, 000

3

Feed Production Equipment

82 500

four

Refrigeration equipment

52, 000

five

Other equipment

50, 000

Intangible assets

6

Registration, advertising

30, 000

Current assets

7

Current assets

30, 000

eight

Purchase of young animals

50, 000

Total:

636, 500

The main work to ensure the operation of the farm and all production responsibilities will fall on the shoulders of the project initiator. Supporting functions will be carried out by family members of the initiator. Opening a farm will require a preparatory period of 3 months, necessary for the erection of sheds, the purchase of breeding herds, and the purchase of parts of equipment. At the time of writing: an agreement has been reached on the sale of products, there is a drawing of a shed construction, a place has been prepared, the necessary building material has been purchased.

3. DESCRIPTION OF GOODS AND SERVICES

The main products of the farm will be rabbit meat - a nutritious dietary product that has a delicate taste, is easily absorbed by the body and does not cause an allergic reaction. It is also planned to sell rabbit skins that can be used to make clothes and waste left over from slaughter (ears, vermicompost, etc.).

For the greatest meat yield, preference is given to the California breed of rabbits - broiler breed, which is able to add up to 45 g daily and quickly reach a lot of weight. The rabbit will be slaughtered for 3-4 months, when the weight of the animal reaches 3 kg. Rabbit meat will be sold at a price of 400 rubles / kg. The cost of 1 kg of meat taking into account feed, vaccination, depreciation of cells and taxes will be about 150 rubles. Skins will be sold at a price of 40 rubles / pc.

To prevent rabbit diseases, and as a consequence - epidemics and mass deaths, rabbits will be regularly vaccinated in accordance with the recommendations of immunologists and industry experts.

4. SALES AND MARKETING

Distribution channels for farm products have already been identified. An agreement was reached with individual entrepreneurs who own their own retail butcher shops; in addition, agreement was reached on the supply of rabbit skins to a local garment factory. Thus, the farm will be able to count on the fulfillment of planned sales volumes in the first months of operation (for sales plans, see Appendix 1 of this business plan). In the future, the sales market can be expanded through the following channels and tools:

1. Using your own connections.

2. Distribution of business cards.

3. Placing ads on free sites on the Internet.

4. Advertising on popular city forums, in social networks.

5. Participation in agricultural exhibitions, fairs.

6. Conducting excursions to the farm.

5. PRODUCTION PLAN

A rabbit farm will be organized on its own land area of ​​1000 square meters. meters, located in the rural area. As a system of keeping animals, a shed system of keeping was chosen. Sheds will be built personally by the owner of the site. The Shed complex will occupy an area of ​​360 square meters. meters and will receive up to 1000 heads of rabbits per year. There will also be a place to store compound feed and equipment, a place for slaughtering and installing refrigeration equipment. To reduce costs, feed for rabbits will be produced manually, for which a grain crusher and granulator will be purchased. The costs of building and equipping the farm are shown in Table. 2.

The rabbit breeding technology will be based on the recommendations of rabbit breeding specialists with careful observance of all the nuances, including placement of rabbits, seating (individual cages for young animals, rabbits), feeding, cleaning, vaccination, the recommended terms for admitting rabbits to the male, and so on. Considering that one rabbit is capable of producing 6-8 rabbits, keeping fourteen rabbits in a shed will bring from 250 to 350 goals annually. In our case, from 3 sheds it is possible to get from 700 to 1000 carcasses. The sales plan based on these indicators is given in Appendix 1 of the business plan. Taking into account the time, it is necessary for young growth, increase in the number of livestock and establishment of distribution channels, it is planned to reach the maximum volumes for 8 months of work.

Table 2. The cost of construction and equipment of the farm

No.

Name

Cost, rub.

Creating Sheds

one

Construction beam

76, 000

2

Decking

75, 500

3

Professional flooring for a roof

36, 000

four

Plywood

27, 000

five

Chipboard

8 500

6

Cement

4, 500

7

Welded wire mesh galvanized 25x50

3, 500

eight

Welded galvanized wire mesh 18x18

1, 000

9

Other materials and consumables

10, 000

Utility room equipment

ten

Utility room equipment

100, 000

Feed Production Equipment

eleven

Feed Granulator

79, 000

12

Grain crusher

3, 500

Refrigeration equipment

13

Freezers

52, 000

Other equipment

14

Inventory

30, 000

15

Drinking bowls and feeders

20, 000

Total:

526, 500

6. ORGANIZATIONAL PLAN

The farm will be registered at the IP (activity code for the new OKVED: 08/18/2019 Breeding rabbits and other fur animals on farms); permission is obtained from phytosanitary control. The tax system is simplified (6%). The project involves the self-employment of a project initiator with basic experience in breeding rabbits. He will be responsible for all the basic duties of caring for rabbits, including feeding, cleaning, slaughter, etc. The project requires a preparatory period of 3 months. Phased implementation of the project taking into account the start is given in Table. 3.

Table 3. Stages of preparation for opening a farm

1 month

2 months

3 months

1-7 day

8-14 day

22-30 (31) day

1-7 day

8-14 day

22-30 (31) day

1-7 day

8-14 day

22-30 (31) day

Channel Definition

Drawing creation

Purchase of building materials

The construction of the sheds

Ancillary facilities

Registration IP

Getting Permissions

Purchase of young animals

7. FINANCIAL PLAN

Starting investments in the opening of the rabbit farm will amount to 636.5 thousand rubles. The basis of the company's income will be the sale of rabbit meat, additional income is expected from the sale of skins. The expenditure part will include the cost of purchasing feed for rabbits, vaccinating, paying for electricity, fuel and lubricants, and depreciating the cells. A summary table for all financial indicators, including revenue and net profit for three years of the project is given in Appendix 1.

8. EVALUATION OF EFFICIENCY

Upon reaching the planned volumes, the farm will pay for itself for 18 months of work. The annual turnover of the farm will be 920 thousand rubles, net profit - 549 thousand rubles. Return on sales - 59%.

9. RISKS AND WARRANTIES

A key risk factor for a rabbit farm is mass death, which can result in one of many rabbit diseases. The main measures to prevent this and other risks of this business are given in Table. four.

Table 4. Possible risks and ways to prevent them or their consequences

Risk factor

Probability of occurrence

Severity of consequences

activity

High mortality / rabbit disease (fasciileosis, cysticercosis, scabies, pasteurellosis, worms, listeriosis, tularemia, etc.)

low

high

Timely vaccinations and vaccinations, regular deworming, proper feeding and safe conditions, regular cleaning of cages, feeding troughs, drinking bowls, manure cleaning, timely detection of symptoms (knowledge of the main rabbit diseases), resettlement / killing of sick individuals, disinfection of all objects that were in contact sick rabbit

The emergence of a competitor, the entry into the market of regional / federal networks

average

average

Search for several core sales channels, effective product advertising, expanding the range of products offered, using competitive advantages (low price, proximity to the buyer).

Decrease in profitability due to worsening economic situation, falling solvency

low

average

Cost reduction, search for additional sources of income (sale of fat, liver, vermicompost and waste left over from slaughter)

Natural disaster, force majeure circumstances

extremely low

high

-

10. Applications

ANNEX 1

Three-year production plan and key financial indicators

Mikhail Semynin

(c) www.clogicsecure.com - a portal to small business business plans and guides

08/18/2019

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