Animal Husbandry

1. Introduction
Poultry egg and meat are important sources of high quality proteins, minerals and vitamins to balance the human diet. Specially developed breeds of egg type chicken are now available with traits of quick growth and high feed conversion efficiency. Depending on the farm-size, layer (for eggs) farming can be main source of family income or can provide income and gainful employment to farmers throughout the year. Poultry manure has high fertilizer value and can be used for increasing yield of all crops

2. Scope for Layer farming and its National Importance
Poultry industry which provides cheap source of animal protein has taken a quantum leap in the last three decades evolving from a near backyard practice to a venture of industrial promotion. Poultry is one of the fastest growing segments of the agricultural sector in India today. While the production of agricultural crops has been rising at a rate of 1.5 to 2 percent per annum that of eggs has been rising at a rate of 8 percent per annum. India is on the world map as one of the top five egg producing countries with 55.6 billion eggs produced during 2008 (FAO).

The poultry sector in India has undergone a paradigm shift in structure and operation. This transformation has involved sizable investments in breeding, hatching, rearing and processing. Farmers in India have moved from rearing non-descript birds to rearing hybrids which ensures faster growth, good liveability, excellent feed conversion and high profits to the rearers. High quality chicks, equipment, vaccines and medicines are available. Technically and professionally competent guidance is available to the farmers. The management practices have improved and disease and mortality incidences are reduced to a great extent. The industry has grown largely due to the initiative of private enterprise, minimal government intervention, considerable indigenous poultry genetic capabilities and adequate support from the complementary veterinary health, poultry feed, poultry equipment and poultry processing sectors. The industry has created direct and indirect employment for 3 million people.

3. Financial assistance available from banks/NABARD
3.1 Loan from banks with refinance facility from NABARD is available for starting poultry farming.

3.2 For poultry farming schemes with very large outlays, detailed project reports will have to be prepared. Banks provide financial assistance for the following purposes :
a. For construction of brooder/grower and layer sheds, feed store, quarters etc.
b. For purchase of poultry equipment such as feeders, waterers, brooders etc.
c. For creating infrastructure items for supply of electricity, feed, water etc.
d. For purchase of day old chicks or ready to lay pullets.
e. For meeting working capital requirement in respect of feed, medicines and veterinary aid etc. for the first 5 to 6 months (i.e. till the stage of income generation).
The Cost of land is not considered for loan.

4. Scheme formulation for bank loan
4.1 A scheme can be prepared by the beneficiary after consulting local technical persons of State Animal Husbandry / Veterinary department, Poultry Corporation or private commercial hatcheries. If possible, they should also visit the progressive layer farms in the area and discuss the profitability of farming. A good practical training and experience on a layer farm will be highly desirable, before starting a farm. Regular and constant demand for eggs and nearness of the farm to the market should be ensured.

4.2 The scheme should include information on land, water and electricity facility, marketing aspects, training facilities and experience of entrepreneurs and the type of assistance available from State government, poultry corporation, local hatcheries. It should also include data on proposed capacity of the farm, total cost of the project, margin money to be provided by the beneficiary, requirement of bank loan, estimated annual expenditure, income and profit and the period for repayment of loan and interest. A format developed for project report preparation for a commercial layer farm is given in Annexure -I.

5. Appraisal of project
After the scheme is submitted to the bank it is examined for technical feasibility and economic viability.
A. Technical Feasibility : This would briefly include :-
a. Suitability of climate and potentiality of the area
b. Availability of inputs such as chicks, feed, medicines etc.
c. Technical norms
d. Infrastructure available for veterinary aid, marketing, training and experience of the beneficiary.

B. Financial Viability : This would briefly include :-
a. Unit cost and loan requirement.
b. Input cost for chicks, feed, veterinary aid, labour and other overheads.
c. Output cost i.e. sale of eggs, culled birds, for meat, manure, empty gunny bags etc.
d. Income-expenditure statement and annual gross surplus.
e. Cash flow analysis.
f. Repayment schedule i.e. repayment of principal loan amount and interest.
Other documents such as loan application form, security aspects, margin money requirement etc. are also examined. A field visit to scheme area is undertaken for conducting techno economic feasibility study for appraisal of the scheme.

6. Sanction of Bank loan and its disbursement
After ensuring technical feasibility and financial viability, the scheme is sanctioned by the bank. The loan is disbursed in kind in 2 or 3 stages against the creation of specific assets such as construction of sheds, purchase of equipment and machinery, recurring cost during growing period on purchase of chicks, feed, medicines and vaccines, electricity and water, labour expenses etc. for first cycle. Constant follow up and supervision of the scheme is done by the bank.

7. Lending terms - general
7.1 Financial Outlay
Financial outlay of the project depends on the local conditions, unit size and the components included in the project. Prevailing market prices may be considered to arrive at the outlay.

7.2 Margin Money:
Margin depends on the category of the borrowers and may range from 5 to 25% of the total outlay.

7.3 Interest Rate for ultimate borrower :
Banks are free to decide the rates of interest within the overall guidelines. However, for working out the financial viability and bankability of the model projects we have assumed the rate of interest as 12 % p.a.

7.4 Security
Security will be as per NABARD/RBI guidelines issued from time to time.

7.5 Repayment period of loan
Repayment period depends upon the gross surplus from the project. The loan will be repaid in suitable monthly/quarterly instalments usually within a period of seven to nine years with first year as grace period.

7.6 Insurance
The birds and other assets (poultry sheds, equipments) may be insured. Wherever necessary, risk/mortality fund may be considered in lieu of insurance.
A model project with 2000 layers ( 1:2 cage system)  is given as Annexure II. This is indicative and the applicable input and output costs as also the parameters observed at the field level may be incorporated.
Guidelines for integrated biosecurity in poultry production are given in Annexure III.

Format for preparation of Project report
Poultry -  Commercial Layer Farm

1. GENERAL
i) Nature and objectives of the proposed scheme
ii) Details of proposed investments
iii) Specification of the project area
iv) Name of the financing bank branch
v) Status of beneficiary: (Individual)/Partnership/Company/Corporation/Co-operative Society/Others
vi) Details of borrowers profile

(a) Capability
(b) Experience
(c) Financial soundness
(d) Technical/Other special Qualifications
(e) Technical/Managerial Staff and adequacy thereof

2. TECHNICAL ASPECTS
a) Location, Land and land Development
i) Location details of the project
ii) Total Area of land and it's cost
iii) Site map
iv) Particulars of land development, fencing, gates etc.

b) Civil Structures
Detailed cost estimates along with measurements of various civil structures
- Poultry Sheds
- Store room
- Egg room
- Office room
- Quarters for staff
- Others

c) Equipment/Plant and machinery
i) Brooders
ii) Feeders
iii) Waterers
iv) Cages
v) Generator
vi) Feed grinder and mixer
vii) Debeaker
viii) Vaccinator
ix) Fridge/Deep Freezer
x) Truck/van/Jeep(Price quotations for the above equipments)

d) Housing
i) Type of housing Deep Litter/Cage/Slat
ii) Area required (sft./bird)

e) Birds
i) Proposed strain
ii) No. of birds to be purchased
iii) Age of the birds
iv) Source of birds
v) Cost of birds (Rs. per bird)
vi) Vaccination of purchased birds
vii) Proposed programme of replacement
f) Production parameters
i) Number of eggs produced
ii) Feed efficiency (kg of feed/No. of eggs produced)
iii) Mortality (%)

g) Flock Projection Chart

h) Feeding
i) Source of availability Purchased or own feed manufacturing
ii) If purchased
a) Place of purchase
b) Brand
c) Cost (Rs./kg)
- Chick mash
- Grower mash
- Layer mash
iii) If manufactured on farm
a) Capacity of feed grinder and mixer
b) Source of raw materials
c) Feed formula
d) Cost of production(Rs./kg)
- Chick mash
- Growing mash
- Layer mash
iv) Requirement (kg per bird)
- Chick mash
- Grower mash
- Layer mash
i) Veterinary aid
i) Source
ii) Location
iii) Distance (km.)
iv) Availability of labour and other staff
v) Type of facilities available
vi) If own arrangements are made
a) Employed a veterinary doctor/ stock man / consultant
b) Periodicity of visit
c) Amount paid (Rs.)
vii) Expenditure per bird (Rs.)
j) Electricity
i) source SEB/ Other
ii) Approval from electricity board
iii) Connected load
iv) Problems of power failure
v) Arrangements for generator

k) Water
i) Source
ii) Quality of water
iii) Availability of sufficient quantity for drinking and cleaning
iv) If investment has to be made type of structure, design and cost

l) Marketing of eggs
i) Source of sale
ii) Place of disposal
iii) Distance (km.)
iv) Basis of payment (number or weight)
v) Price realised - (Rs./egg)
vi) Periodicity of payment

m) Marketing of other products
i) cull birds Rs./bird
ii) Manure - Qty./bird, price per unit (Rs./Q)
iii) Empty gunny bags Number and cost/bag

n) Beneficiary's experience

o) Comments on technical feasibility

p) Government restrictions if any

3. FINANCIAL ASPECTS

ii) Down payment/margin/subsidy (Indicate source & extent of subsidy)
iii) Financial Particulars
a) Internal Rate of Return (IRR):
b) Benefit Cost Ratio (BCR) :
c) Net Present Worth (NPW) :
iv) Financial position of the borrowers (to be furnished in case of corporate bodies/partnership firms)
a) Profitability ratio
i) Gross Profit ratio
ii) Net Profit ratio
b) Debt equity ratio
c) Whether Income tax& other tax obligations are paid upto date
d) Whether audit is upto date (enclose copies of audited financial statements for the last three years)
v) Lending Terms
i) Rate of interest
ii) Grace period
iii) Repayment period
iv) Nature of Security
v) Availability of Government guarantee wherever necessary

4. INFRASTRUCTURAL FACILITIES
a) Availability of technical staff with bank/implementing authority for monitoring
b) Details of
i) technical guidance
ii) training facilities
iii) Government support/extension support
c) Tie-up arrangements with marketing agencies for loan recovery
d) Insurance
i) Type of policy
ii) Periodicity
iii) Rate of premium

Annexure II

ECONOMICS OF A COMMERCIAL LAYER POULTRY FARM OF 2000 BIRDS

A. Project Cost

B. Techno economic parameters

Flock chart

C. Economics

D. Calculation of NPV, BCR & IRR

E. Repayment Schedule

Guidelines for integrated biosecurity in poultry production

A set of recommended biosecurity practices to be adopted by the poultry farmers for minimising the disease occurrence is given here under in brief.

1. Locational biosecurity :
* Farm should be located
- At an elevated and well ventilated site
- Away from any existing farms or complexes
- Away from water ways/water pools/lakes/tanks
- Away from any nearby village poultry
* Broiler and layer units should not be established in close vicinity
* Farms having more than 50000 birds (Layers) should preferably have separate facilities for
brooding/growing.
* The new poultry farms may be one kilometer away from the existing farms or complexes.

2. Structural biosecurity:

• Construct separate sheds for brooding/growing/laying operations with East-West orientation.
• A minimum distance of 150 ft. between brooding/growing sector and layer sector should be maintained. The distance between the sheds within the sector should be at least 50 ft.
• In case of farms wherein brooding/growing operations are carried out along with layer operations 1:3 system of rearing may be adopted, while in case of units where brooding/growing operations are carried out at separate places, 1:1:4 or 1:1:5 system of rearing may be adopted.
• Multi-storeyed poultry sheds are not desirable.
• Individual farms should be provided fencing with wheel dip at main gate. Provide foot dips at every doorstep.
• The maximum width of the sheds in the case of deep litter system should not exceed 30 feet and the shed should be 2 feet above ground level with pucca floor.
• A minimum over hang of 3 feet must be provided.
• The maximum width of the sheds should be 33.5 feet in case of layer houses under cage system.
• In case of cage system, rows as well as tiers should not be more than three.
• The height of the platform from the ground should not be less than 6 feet in case of cage system.
• For ideal farming, 3 birds per cage with adequate water and feeding facilities should be ensured
• Provide closed disposal pit or incinerator at least 500 feet away from the active operational area.
• A store house for proper storage of litter material should be provided to avoid contamination.
• Provide proper area for used litter disposal away from the active operational area.
• Feed store/mill should be 150 feet away from the sheds and preferably near the gate.
• Office and egg store should be away from active operational area and preferably at the main gate.
• All the sheds and other structures should have rat proof arrangements.

3. Operational biosecurity :

• Procure the day old chicks, which are free from diseases from reputed hatcheries
• It is advisable to have cage system of rearing in place of deep litter system of rearing.
• As far as possible automated equipment should be considered to minimize the manual handling of feeds and water.
• Testing feed ingredients/feeds must be arranged to ensure that they are free from microbial agents or toxins at periodic intervals.
• Storage facilities for feed ingredients/feeds must be managed in an hygienic manner.
• Ensure the feed manufacturing area free from dust, cobwebs and should be equipped with appropriate screens to protect from fly problem.
• It is advisable to feed the birds with pellets for improved biosecurity.
• Sheds having infected flocks should be served with feed at the end of a delivery day.
• Always ensure the supply of clean and potable water. If necessary use appropriate sanitizers.
• Periodic inspection of wells, piping and tanks to ensure that water supplied is clean.
• An area specific vaccination schedule as recommended by hatchery doctor must be practiced with utmost care.
• Rodent control programme, where ever necessary, must be adopted by employing mechanical (traps) or chemical techniques along with strict sanitation measures.
• After selling each crop from the sheds, thorough cleaning of sheds should be done by removing all fixtures, equipment, litter dust, debris followed by brooming and burning. The rat holder cracks, worn out area should be packed with cement.
• Thorough cleaning of the vegetation six feet around the sheds and spraying of bleaching powder (1 parts) with lime (3 parts) around the sheds for a minimum of 3 feet.
• Avoid use of litter as manure around the farms.
• Well cleaning of sheds and equipment with water and appropriate detergent.
• A thorough disinfection of sheds, equipments as well as farm surroundings by formalin spray at recommended concentration.
• Foot baths should be always filled with disinfectant.
• Vehicles visiting the farms should be thoroughly disinfected by appropriate disinfectant spray.
• Personnel working in laying sectors should not be allowed into brooding/growing sector or feed manufacturing facilities. All visitors must be ensured to walk through foot baths.
• Disposal of dead birds in hygienic manner either by using incinerator or by pit method is very essential.