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Investment Opportunity for the Nation's Good

by 5m Editor
31 May 2011, at 9:26am

NIGERIA - Investment in new hatcheries and grandparent farms would help the country's food supply and provide a useful return.

One of the nation's Millennium Development Goals (MDGs) is the provision of adequate and qualitative food for all by the year 2010. An average person must consume 2,191kcal of carbohydrate and 53.8 grains of crude protein daily.

According to Business Daily, the present level of consumption by Nigerians on the average is 1,200kcal of carbohydrate and 35.1 grams of crude protein daily. The crude protein deficit could be met cheaply from animal sources in terms of quality and quantity, and one of the ways of achieving this is by encouraging investments in the animal husbandry sector of the nation's agriculture.

Currently, the number of poultry hatcheries and incubators in the country cannot meet the demand of the poultry farmers. Therefore, establishment of this project will be a welcome relief to poultry farmers. What obtains at present is that farmers have to book for day-old chicks at the existing hatcheries and wait for weeks or months before they can collect. Most of the time, it is by allocation.

One of the greatest problems facing Nigeria today is unemployment. The causes of unemployment can be attributed to low investment in the productive sector. Thus establishment of this project will be an addition to the productive sector, which on the short and long run will create employment opportunities and reduce social vices in the country.

The market for day-old chicks is guaranteed. The operators run what we call a 'sellers' market', as they cannot meet the demand of their buyers.

The project is highly profitable and it is also technically feasible, as it can be managed by middle level manpower.

The project entails installation of incubators where fertilised eggs are kept for a period of 21 days, and they are hatched. The day-old chicks are then sold to poultry farmers. The fertilised eggs are earlier procured from already established grandparent stock poultry farm.

In essence, an investor will need to establish a grandparent stock farm where fertilised eggs are produced. The eggs are later transferred to incubators where they will be hatched within 21 days. Serious-minded investors can be assisted in the establishment of the project.

The project can be financed by agricultural bank, Bank of Industry and commercial banks if supported by a bankable feasibility report. This can be prepared on request for genuine and serious-minded investors.

Annual turnover of 35 million naira (NGN) has been projected, according to Business Day, while the profit margin of about 40 per cent is realisable after cost deductions including bank charges. This is no doubt, a good investment that can contribute positively to our economy.