Establishing Chicken Processing, Packaging Plant

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Establishing Chicken Processing, Packaging Plant
August 23, 2019


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Godwin Uba
In every nation of the world, an economic reform is a continuous process. Agricultural & economic reforms aimed at improving on the self-sufficiency rate of food. This reforms aim to reviewing the basic law of food, Agriculture and Rural Areas promulgated and to increase the self-sufficiency rate of food on a calorie basis from its present level to 45 percent as at the year 2018.

Despite the advent of Globalization all the developed economies of the world are very keen on the issue of self-sufficiency especially as relates to food and drinks.

The same view of self-sufficiency led to the Japanese Government comparison with other developed economies in the area of self-sufficiency rate which led them to think of Agricultural reforms.

Based on the efforts of other parts of the world, the present Government had introduced Agricultural reforms which led banning of imported frozen chicken and turkey. The main objective behind this policy is to encourage local poultry farmers as well as creation of new industries that will process the chicken produced by the nation’s numerous poultry farmers into the so called “frozen chicken”.

The ban has created another lucrative business opportunities for Nigeria investors. If this opportunity is well utilized it will go a long way to discourage the importation of frozen chicken/turkey and other similar products into the country. It will make poultry/ livestock farming more lucrative, since more farmers would be created out of the policy.

From study carried out, the ban has led to high cost of available frozen chicken and other such related food items.
Furthermore, the ban on importation of the frozen chicken has thrown some Nigerians out of business since a lot of the petty traders cannot afford the cost of running the business.

Moreover some merchants still smuggle frozen chicken and turkey into the country, but their prices are out of the reach of the teeming population of poor masses. These smugglers pay through their noses to pass through customs check points. By the time their products arrive into the country, the prices of the commodities will go up.

The only solution to these problems is to develop a project that will compete favorably with the imported products in terms of quality and quantity.

This project is considered a very good one and will be in a position to replace the imported products.
There is no doubt that the demand for chicken/ turkey grows expands every day with the rapid increase in population of Nigeria (now estimated at about 140 million) there is need to increase food items as well.

The level of consumption of any food (including chicken) is direct proportional with the increase in population. As the population increases, urbanization also increases. All this creates awareness and changes in tastes and preferences.
With the fast increase in the numbers of fast food centers, the need for increase in the setting up of local chicken processing and packaging plants will not be over emphasis. There are so many fast food centers that require several tons of processed chicken. There are so many market women that are in need of where to purchase that processed live chicken for sales. Therefore study has shown that there is wide market for this product.

For one to set up this project there is need to asses some vital requirements to ensure the success of this project. One of such requirement is availability of raw materials.

One may ask how we can get sufficient live chicken on daily basis so as to remain in business.
From research carried out, so many poultry farmers are looking forward to seeing where they will sell their products for immediate cash on maturity. From survey carried out, raw material will not be a problem.

Details will be given to prospective investors on contacting the writer.
Another important thing is the Technology. The major machines required are processing machines, Deep freezers and other miscellaneous equipment.

There is need to have a very good standby generator so as to store the products as they are produced. All the machines are locally available. They can as well be imported from oversea.

Detail will be given to prospective investors.

It is very imported to mention that NAFDAC consent must be sought since this project related to foods & drinks. Therefore, all the rules and regulations of NAFDAC must be followed.

Based on our rough estimate the promoter(s) should provide at least N29, 000, 000 for take-off. This can be sealed down as well depending on the promoter.

The payback period is about two (2) yeas. The return on investment is 58%. The cost-benefit ratio analysis is in the ratio of 1:3 tons.

Finally, this project will go a long way to increase the supply base of frozen chicken to bridge the gap between the short in supply as a result of the ban; increase employment opportunities, create more selling points for the numerous poultry/livestock farmers and at the same time generate huge income to prospective investors.

Interested investors should also note that they can take advantage of the SMIEs funding scheme to obtain part of the funds required to set up this project.

Some poultry farmers or those who may wish to set up poultry livestock farms can benefit so much from investing in this project.
For details on the procurement and installations for the machines (both local & foreign), preparation of comprehensive & bankable feasibility studies/reports, sourcing of the required funds as well as other investment advisory services on industrial projects please contact the writer.