abbit Farming project by Meshack

12AUG




PROPOSED RABBIT FARMING
BUSINESS PLAN.







Prepared By MeshackAmwata


Table of Contents.
1. Executive Summary
2. General Business Description
3. Business model
Marketing
Operation
Finance

EXECUTIVE SUMMARY
A rabbit is a burrowing animal which has long ears and a short tail. They are usually reared for
their wool, fur, meat and even urine/manure. Their meat is considered as white meat and better
than other types of meat. The rabbit meat is in high demand because:
Cholesterol and fat level in rabbit meat is much lower than chicken, turkey, beef, and pork. For this
reason rabbit meat has been used and is suitable for special diets, such as those for heart disease
patients, diets for the aged, low sodium diets, weight reduction diets, etc.
Rabbit meat has the highest in protein percentage.
They are usually disease free animals but negligence is the only factor that causes complications.
Rabbits will produce 6 pounds of meat on the same feed and water thus high returns are
expected. The space required to build a rabbitry is quite small thus lower costs and since they
reproduce very fast, there is always room for expansion.
The starting stock of rabbits can be bought from local breeders. Rabbits start to breed at the age
of between six and seven months and give birth after a gestation period of one month. A female
rabbit can produce up to 50 live rabbits per year at the average rate of 9 kits per birth.
Some of the already established local breeders include;
The Rabbit Republic Ltd -Dagoretti,
Murikar Rabbit Farm Lower MatasiaNgong
Rabbit Breeders Association of Kenya- Thika
The initial capital requirements are minimal because once you have a good structure in place,
you can start with a few mature rabbits which will reproduce fast and increase your stock. The
initial capital budget can be less than KES 50,000/- depending on the number of mature rabbits
the farmer starts with.
Food for the rabbits is relatively cheap since vegetables can be acquired from local grocery
stores while Pellets go for about KES 2,000/- for a 50kg bag which will last the farmer for a
whole cycle and a bale of hay is KES 200/-.
The cost of acquiring a mature rabbit of any breed that is ready for breeding is between
KES3,000/- and KES 5,000. The price of mature rabbits is largely dependent on its weight
and size.One hatch which can house either pregnant mother & kits, one male or kits from one
mother costs KES 3,600/- to build.
The market for rabbits and its meat is mainly in large hotels and restaurants. We must appreciate
that during the early stages of production, we cannot meet the demand of hotels as individuals.
For this reason, The Rabbit Republic LTD has a facility in which farmers can sell the rabbits to
them so that they can meet the demand. They purchase the rabbits in terms of kilograms and a
kilogram goes for KES 400. The condition for enjoying this stable and available market is to
register with the company after doing a learning package worth KES1, 000.
The financial aspect of this venture is favorable since there is a higher return on investment since
expansion/growth is fast and the payback period is short. Cash flows will start to be realized after
the first lot of kits mature which will be about six months. Expenses are minimal once the initial
structure is properly established. Proper care should be practiced thus less funds on treating the
bunnies white more on their feeding.
GENERAL BUSINESS DESCRIPTION.
Rabbit farming is an undertaking in the agricultural industry which is the biggest sector of the
economy. Many youths in the country ignore the agricultural sector because of its hands on
nature but its returns are high due to its primary production nature.
Animal husbandry is usually differentiated depending on the type of livestock one keeps since
each animal has its own requirements. Rabbits have less requirements compared to other forms
of livestock in relation to capital, operating costs and maintenance yet they have quick returns
and high demand.
There is great potential in this undertaking because of the increased life style change of most
families towards healthy living. This is evidenced by the preference to white meat rather than red
meat and increase in the demand for rabbit meat since it is the most nutritious of the white meats.
This is a trend that shows future growth of the industry and thus increased future cash flows of
early entrants to the industry. The opportunity is immense based of the change in trends in the
market coupled the gap in the supply of the product.
The market for rabbit meat is relatively large but the supply is low which gives rise to a deficit
meaning higher profits can be realized. There is still growth in the market which means that
demand is increasing making it a profitable venture.
A male rabbit is called a buck, a female rabbit is called a doe and the children are known as kits.
Rabbits mature at the age of between 4 to 6 months depending on the breed at which they can
start to reproduce. To tell the difference between a male and a female rabbit, hold the rabbit in a
craddling position on it back they will usually relax into a hypnotic state. Go to the genital area
and separate the fur to reveal the vent area under his tail where his genitals are located. Press
down lightly just above the anus to make the area protrude. If you see a vertical slit with pink
folds of skin of either side, it is a female. On the male, you will see a tiny pink or white tube-like
organ without pink sides. The younger the rabbit, the harder it is to tell the sex.
The common breeds of rabbits kept in kenya are Chinchilla, california white, newzealand white
and flemish giant. They have their own unique features as shown below;
Chinchilla
Have brown to grey fur.
Upstanding ears and brown eyes.
The buck and the doe attain weight of 6-7 kgs at 5 months.
Meat yield is 4-5 kgs.
Califonia white
Have a dense white fur.
Upstanding black ears and black nose.
The buck and the doe attain weight of 3.0-3.5 kgs at 4-6 months.
Meat yield is 2.0-2.3 kgs.
New Zealand white
Have dense white fur. Upstanding ears and red/pink eyes.
The buck and doe attain weight of 4.5 and 4.5-5.5 kgs respectively at 4 months.
Meat yield is 2.1-2.3 kgs.
Flemish giant
Have brown fur.
Upstanding brown white ears brown eyes.
The buck and the doe attain weight of 5.0-5.5 kgs in 4-6 months.
Meat yield is 2.5-3.0 kgs.
Flemish giant may have various colours. Black, blue fawn,
light grey, sandy steel, grey and white.
Rabbits can be kept in any part of the country as long as they are housed properly and protected
from predators. There are various ways one can construct the housing for rabbits depending on
the size of the stock, location of the project as well as materials available. A farmer can start with
a rabbit pen with the dimensions of 3ft on each side which is sufficient to house a doe and its kits
or a single male. It is usually constructed using locally available materials supplimented with
others from the local store. More pens can be constructed with the increase in stock because
rabbits reproduce fast.
Some farmers use the deep litter system. Deep litter is an animal housing system, based on the
repeated spreading of straw or sawdust material in indoor booths. An initial layer of litter is
spread for the animals to use for bedding material and to defecate in, and as the litter is soiled,
new layers of litter are continuously added by the farmer. In this fashion, deep litter bedding can
build up to depths of 1-2 meters.
Below is example of rabbit housing;
rabbit pens
BUSINESS MODEL
The rabbit farming project as a business model is the plan in pllace to enable the project generate
revenues and make profits from operations. It revolves around marketing, operations and finance
as the major piller to ensure the success of the project.
Marketing.
This is the process by which we shall communicate the value of our product to customers for the
purpose of selling the product and increasing our profits after production is stable and the stock
of rabbits is enough for commercial purpose. This is a critical area in the undertaking since it
leads to maximisation of profits in the long run.
The initial marketing strategy proposed is that we join the cooperative society offerd by rabbit
republic LTD so that we have the initial market as we continue in the breeding and expansion of
the rabbit stock. This will give us am readily available market in the early stages of the business.
Encourage more youths to undertake the project so as to have enough stock for mass commercial
use and apply for supply tenders in hotels.
Operations
The breeding will start in any of the members residence which will be financed by the group in
terms of building materials, equipments, initial stock and feeds.
Breeding and care of the rabbits will be done by the said member who will maintain proper
records of the operations.
Assuming we start with 5 mothers and two males the operation structure will be as follows;


2 Males 1 2 3 4 5 6 7 8
9
32 31 30 29 28 27 10
21 22 23 24 25 26 11

Water
Tank 12
2 Males 20 19 18 17 16 15 14 13

Notes

Dimensions of the Hutches L 2.5 X H 2.5x W 2.5ft
cubed
Two levels of hutches with 1.5 ft ground clearance and 1 ft between the two levels
Outside walls 32 gauge iron sheets or build walls of appropriate materials in the prevailing zone
Roofing 30 gauge sheets
Floor and partitioning of hutches weldmesh (Medium gauge) and 1/2 inch chicken mesh heavy gauge)

Floor
screed
Timber 2x2inches
The weaning done after one month. The rabbits are separated from their mother
At 3 months the male rabbits are separated from the female rabbits and the male are castrated

At five months both male and female are ready to be
sold

Isolation Area is where sick animals shal be kept for observation and treatment

Finance
This involves all the cost, expenses and revenues incurred in the first 12 months of the project.
Assuming we start with five females and two males, the financial implication will be as follows;
1. Initial capital
This includes costs of construction, purchase of initial stock, purchase of equipments and feeds.
Table of hatch construction costs for five mothers as the initial stock.
Unit Materials Bqs for EstTptal
S_no Item description Unit Qty Price
0ne
Hutch

5
Cost in
kshs
1 Timber 22 ft 540 24

45.00

225.0

16,200
2 Iron Sheet 30g 3m No 3 1000

0.25

1.3

3,750
3 Translucent sheets 2m No 6 800

0.50

2.5

6,000
4
Weld Mesh (medium
gauge) No 6 650

0.50

2.5

4,875
5 Chicken Wire No 1 5000

0.08

0.4

6,250
6 Plywood No 2 600

0.17

0.8

1,500
7 Hinges No 24 24

2.00

10.0

720
8 Plastic Gutter pipe 2inch No 1 800

0.08

0.4

1,000
9 Nails 1 Kg 1 180

0.08

0.4

225
10 Nails 1.5 Kg 2 180

0.17

0.8

450
11 Nails 2 Kg 2 150

0.17

0.8

375
12 Nails 3 kg 3 150

0.25

1.3

563
13 Nails 4 Kg 3 150

0.25

1.3

563
14 Roofing nails Kg 1 180

0.08

0.4

225
15 Labour No 12 600

1.00

5.0

9,000

Estimated Cost in Kshs
for

5 rabbits

-

51,695
After construction of the hatch, the rabbits will be purchased at a maximum amount of KES
5,000.
2 males@ 5,000 = 10,000
5 females@5,000= 25,000
Total = 35,000
Total Initial capital for five mothers= 35,000+51,695= 86,695
NB// the cost of construction includes that of hatches that will accommodate the new rabbits
after breeding.
2. Revenues.
These are forecasted incomes after a production period of 12months for 5 mothers.
The production chart for five mothers over a period of 12 months

Months
No of
Mothers
Av.
Size
of
litter
Total
Litter
No
for
Sale
1
No for
sale
Year
2-5
Av
Weight
of
rabbit
Price
per Kg
Live
weight
Total
Value
shs year
1
Total
Value shs
year 2 to
5
Month
1 5 6 0 0 30 4 400 - 48,000
Month
2 5 6 30 0
Month
3 5 6 0 0 30 4 400 - 48,000
Month
4 5 6 30 0
Month
5 5 6 0 30 30 4 400 48,000 48,000
Month
6 5 6 30 0
Month
7 5 6 0 30 30 4 400 48,000 48,000
Month
8 5 6 30 0
Month
9 5 6 0 30 30 4 400 48,000 48,000
Month
10 5 6 30 0
Month
11 5 6 0 30 30 4 400 48,000 48,000
Month
12 5 6 30 0 4
Total 180 120 180 192,000 288,000
3. Other expenses
These are the day to day operating expenses that will be incurred in running the project. They
include labour costs, vetinary expenses, feeds, and maintenance/ miscelenious costs.
Labor costs @ KES 1,000 per month- 12,000
Vetinary/ consultancy services 10,000
Pellet Feeds for mothers @ 11,400 (150g per rabbit per day)
Maintenance cost at 10,000
TOTAL EXPENSES = KES 43,400

FORECASTED FINANCIAL POSITION
IN THE FIRST 12 MONTHS.

KES KES
Revenues

288,000
less;

Initial Capital 86,695

operating expenses 43,400 130,095

157,905
SECOND 12 MONTHS WITH THE SAME
STOCK
Revenues

288,000
less;

operating expenses

43,400

244,600
This shows growth in profits since the initial capital is incurred once unless there is expansion.
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