Chicken Breeding Business Proposal

A.SUMMARY DESCRIPTION OF THE BUSINESS

Our company will be formed in 2010. We choose chicken business. Guro Dilan is experienced in this sector and the consumption of chicken increases both in Turkey and in the world. We buy chickens from local farmers. In slaughter house, chickens are cut and packaged. We have an agreement with big companies like Migros. They directly buy chickens from our company. On the other hand, our distributors buy chickens and distribute them to small companies.

Short term goals: Surviving until the effects of the crisis disappears, being well known in the sector, getting %5 shares of the market.

Long term goals: Getting %20 shares of the market, building our own broiler house, building four more breeding units and four more brooding houses and one more slaughter house, being most known company in the sector.

Strategic Relationships: We have distributors who buy our packaged chicken and sell them to small markets. We have also an agreement with an attorney company.

SWOT Analysis: Strengths: Guro Dilan knows the business. We have rich relatives. We are graduated from good universities. Consumption of chicken is high in Turkey. Our location is fine.

Weaknesses: There are still effects of the crisis in the world. We are new in this sector. We don’t have a broiler area.

B.PRODUCTS OR SERVICES

Manufacturing process:

Breeding Units

Breeding units are basically farms which produce healthy eggs for the company. The breeding farms must be scattered around the Thrace and Asian sides in order to be close to the slaughter house. We have an hygiene policy, because we give so much notice to human health. During the growing period, all vaccines required for each chicken is applied in order to ensure the immunity of chickens against any disease.

Brooding House

Brooding house is the place where the eggs grow and chicks come out. In this place eggs are put in two categories: eggs which will be send to market and eggs which will grow and produce fresh-born chicks. In the next stage, we send the eggs to the setter machines, where they lay in optimum temperature and moisture and it takes 18 day for them to grow. At the end of this period, they are sent to the hatching machines where they stay for 3 days and at the end of the third day, chicks start to emerge from the eggs.

Broiler Area

Broiler area is the place where chicks grow and get ready for the slaughter house. There are broiler growers of our own and local broiler growers whom we made agreements with. In broiler area, chicks remain in the poultry houses for 45 days. Here, chicks gain a weight of 2,200 kg in 45 days with help of genetic science. At the end of this 45 days period, chicks are now ready to be sent to slaughter houses.

Slaughter House

Our company has a main slaughter house located in Kocaeli with a capacity of 50,000 chicks per day. In this section, chicks collected from broiler growers come to the slaughter house and are cut down. Then, the chick is divided into parts by the machines and put in boxes according to the request coming from the clients. All workers in the slaughter houses have special clothing and pass under a hygienic control every day. After the chicken meat is put in boxes, they are transferred to the clients by our trucks (clients can send their trucks as well).

Services: We send packaged chickens to big supermarkets like Migros. We provide them a service by carrying the products to their location.

C.INTELLECTUAL PROPERTY

Our company’s name and logo are patented.

D. LOCATION

We decided to build our factory in Kocaeli, due to its close location to big cities, İstanbul, Ankara and Bursa, and the high number of chicken producers around. Our area must be at least 50,000 m2 which costs 3,000,000 TL. Our slaughter house will be built in Kocaeli whereas in the beginning we will get the chickens from local produces. We will also have breeding units which are scattered around the Thrace and Asian sides and 4 brooding houses which cost 2,000,000 TL.

E.LEGAL STRUCTURE

Our company’s legal structure will be partnership. We as four partners will run the business together. Important decision will be discussed and be decided by sharing our ideas. More specifically, Guro Dilan will be head of production and packaging department. Mustafa Polat will be the head of sales and advertisement department. Cem Akmanlar will be in charge of the health of the chickens and personnel issues. Yağız Aktan will be the head of finance department and tax manager.

Advantages: Problems are solved by discussing it. We have more skills and ideas than a single person. We can raise more capital and expand easily. We have different skills and can specialize in our own areas.

F.MANAGEMENT

We as four shareholders will run the business together. We will be responsible for most of the financial work and specify important decisions for the business. The money flow and important agreements will be controlled by us. Officers will help us to make sure that everything goes fine.

Guro Dilan: Studied veterinary medicine and has master degree of finance, head of production and packaging department.

Mustafa Polat: Studied management and has master degree of advertising, in charge of advertisements and sales

Cem Akmanlar: Studied veterinary medicine, in charge of the health of the chickens and personnel issues

Yağız Aktan: Studied economics, in charge of financial work and taxes

Our salary will be %10 of the total income. We will share it equally.

G.PERSONNEL

We need 150 workers who work in slaughter house, breeding units, brooding houses and for the security. They will work 8 hours per day and 6 days in a week. They need to know how packaging and slaughter machines work.

Their salary for the following six months: (1000 x 150 = 150,000 TL)

Life insurance: (2000 x 150 = 300,000 TL) JUST DONE ONCE

We need 15 administration workers who know how to use a computer and are graduated from university. (6 Secretaries and other officers, 5 engineers, 4 veterinaries) They will work 8 hours per day and 6 days in a week. All of them should be graduates of a university and secretaries and officers need to speak at least one foreign language for exportation.

Their salary for the following six months: (2000 x 15 = 30,000 TL)

Life insurance: (2000 x 15= 300,000 TL) JUST DONE ONCE

We plan to open a broiler area in the future. The total number of the employers will be 220 instead of 165.

H.ACCOUNTING AND LEGAL

We will have a computer software system which keeps records of daily income and expenditures. Sales will be either from bank account to bank account or with cash or with cheques. Financial statement analysis and tax analysis will be done by the officers and Yağız Aktan, financial head, will be check them. He will be the tax accountant.

Our company, RChickens will have an agreement with a well known and successful Turkish attorney company.

I.INSURANCE

All of the employers will have an insurance of SSK (Turkey Social Insurance Association) whose cost is included in the salaries of the employers and life, health insurance which costs 300,000 TL. We, the bosses, will also have life a life, health insurance. But we will also have property insurance which costs 15,000 TL every year. Cem Akmanlar will be the carrier of the insurances.

J.SECURITY

Security is an important issue for us. To hinder the robbery, we have six security guys who change their jobs every eight hours and we have cameras which are located in the important parts of the factory. Also, to hinder the theft of information, we have a special computer system that can be controlled only by us, engineers and important officers.

Salary of the security guys: 1000 x 6 = 6,000 TL

Cost of cameras and computer system: 8,000 TL