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Bulgaria poultry farm expansion project

2014/09/06No.2014002
南南合作
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Project Intention
Project Number
No.2014002
Project Name
Bulgaria poultry farm expansion project
Country/Region
Bulgaria
Project Funds
7000000EUR
Project types
investment and financing
Project profiles

During the last hundred years the world's population quadrupled. Worldwide hunger may soon occur, some scientists believe.Is there any recipe against hunger anyway? If the philosophers left unsolved the mystery of what came first-the chicken or the eggs, for the nutritionists the answer is clear-the egg! It is recommended that the healthy menu of healthy person includes an average of one egg per day.

 

VELDI-1 LTD was founded in 2003 and it specializes in the production of eggs, hens and fodder.

 

VELDI-1 LTD is located in the central part of Bulgaria, 5 km away from the city of Plovdiv and 1 km away from Trakia highway.The enterprise is built on an area of about 70 000 square meters. The production facilities have a capacity of about 40 000 chickens. The company's management is working on a programme for increasing the capacity of the poultry farm to 500 000 chickens.

 

Currently, we have modern facilities and equipment that comply with the European and global standards in the area of poultry farming. Thr company is developing the following main types of production:

·Egg production

·Production of young laying hens

·Production of fodder

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Eggs

VELDI-1 LTD offers eggs with high nutritional value, sorted and pachaged in compliance with the global and European standards. The international standards that have been introduced and maintained in the company-ISO 9001:2008 and ISO 22000:2005-guarantee the quality of the eggs we produce. For the packaging of the eggs we use boxes for 6 and 10 eggs, as well as bigger cardboard boxes for 180 eggs. The size/weight catagories are, as follows:-S,M,L,XL,XXL.We sell our products on the territory of Bulgaria and the company is partner of some of the biggest hypermarket chains in the country. Our expansion plans are related to opportunities for prosuction realisation on the European markets.


Young laying hens

VELDI-1 LTD has a center for young laying hens. In the building of the center the chickens/hens are bread from their first day to the age of 17 weeks. The company deals with this type of production mostly for satisfying its own prosuction needs, but also for external clients.


The chickens/hens are bred under a specail self-control programme we have established. They are fed in standard portions, in accordance with the hybird type and age. The vaccination of the chickens/hens is carried out under a programme for immunoprophylaxis that is approved by the National Veterianary Service.


Fodder

VELDI-1 LTD has its own fodder workshop, but the important development goals of the company include the construction of a fodder plant. The plant should fully comply with the European quality standards and should produce fodder by using computer management and automation of the production processes. The fodder plant will provide for the following:


·Continuous monitoring of the quality of the finished fodder.

·Maximun accuracy and traceability of prescriptions.

·Safety of the produced fodder - destruction of all bacteria, mold and other harmful micoorganisms by brief heating to over 100℃.

·Unique structure of the produced fodder.

·Through a combination of pressure, temperature and high humidity during the production of the fodder, a better digestibility of the fodder by the hens/chickens is achieved.


Market volume

According to the data of the Union of Poultry Breeders in Bulgaria, about 1.2 billion eggs are produced annually in the country. The Bulgarian households sonsume over 30 million eggs monthly, and the Bulgarian monthly export is about 150 million eggs. Bulgaria also imports eggs from Poland, Hungary, etc. According to this data, our production is marketable not only in Bulgaria, but also on the foreign markets.

 

 

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Bussiness model for expansion

Our research studies should that we would need about 12-15 EUR investment per chicken for the construction of buildings and their full equipment. Thus, the estimated investment that would be necessary is about 7 million EUR.

If the planned investment, which will provide the proper conditions for breeding 500 000 chickens with egg production of 85%, is realized, we will achieve a daily prosuction of 425 000 eggs. The annual production will reach 155 125 000 eggs.

The gross profit from one egg in the last two years is 0.00753 EUR per one egg on average. We expect the annual profit from the egg production to be about 1 167 000 EUR.

The planned expansion envisages a closed cycle of egg production, which includes:

·Production of hatching eggs

·Hatchery

·Young hens/chickens

·Packaging workshop

·A workshop for primary processing of eggs(separating the whites from the yolks) and their preservation. 

If a closed cycle is achieved in this business, from chick hatching to the sale of eggs, the profit will increase to 5-7%.

 
 

 

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