Eggs SRL started its activity in 2009 with a share capital of 200 RON.
The main activity type is bird breeding. The share capital is divided into 2 social shares with the value of 100 RON each and it is represented by the contribution in cash and in nature (the land for the construction of the farm).
The business is considered an opportunity on the local market through its specialized character. Being an egg chick farm, it will focus its activity on optimizing production and capitalizing on a high quality potential.
From the existing statistics, an increased chicken in the peasant farms produces about 120 eggs per year, exclusively during the summer, but consumes 120 grams per day, or 43.8 kilograms per year, resulting in approx. 365 grams of egg feed, compared to 280-300 eggs a year in the intensive growing system with a consumption of 140-150 grams per egg. In conclusion, the business opportunity consists in the fact that an intensive chicken (farm) produces 2.3 – 2.5 times more eggs per year, with an egg feed consumption of 2.4 – 2.6 times smaller.
Due to insufficiently controlled market in Romania, there are three categories of eggs (complex eggs, peasant eggs and imported eggs).
Urban consumers can consume 2.9 billion eggs annually (11.9 million x 250 eggs). At present, only 1.2 billion are produced, with the view that this number of eggs will decrease in the next period.
The management of the farm is ensured by the two founding partners, with an active role in the society, occupying the positions of Production Director and Commercial Director. The two form a team through both common qualities (organizational abilities, leadership skills, practical spirit) as well as through the complementary skills they possess:
For the development of the activity, Eggs SRL has proposed to capitalize the land (1 ha) of the two associates, by building 4 halls, a warehouse and an office space.
This project requires an initial amount of € 1,300,000, detailed in the financial plan.
In order to obtain this amount, the financial contribution of an investor, implicitly involved in the company’s activity, is taken into consideration.
An increase in revenue is also expected (starting with the second year of operation) by 25% per year.
Investors interested in financing this business will benefit from a 30% share of the new share capital following the investment.
The opportunities for leaving a business available to a potential investor will be agreed upon when the funds are invested.
SC Egss SRL will have the activity of breeding poultry (for meat), CAEN
A0147. The farm is set to operate on the 1 ha land owned by the two founders in the Farau area.
The company’s mission is to harness the potential of local egg production to provide consumers with superior value products.
Also, the values at the heart of the business are the quality and the surpassing of the customers’ expectations.
General objective: Provide egg production in 3 key areas of Alba County.
– Developing a favorable image on the egg zone market;
– Positioning in the minds of potential clients (intermediaries) as the farm from which you can get the simplest healthy chicken eggs;
– Creating relationships with suppliers and distributors based on trust and professionalism;
– consolidating the market image through promotions and loyalty campaigns;
– increasing customer loyalty (intermediaries) to the offered products;
– specialization exclusively on organic poultry farming;
– developing a portfolio of at least 20 clients (distributors);
– achieving a turnover of at least € 700,000;
– achieving a turnover of 875,000 euros;
– increasing the profitability of egg production by 20%;
– extending the customer portfolio (intermediaries) by 30%;
– reinvesting 80% of the profit obtained in updating the technologies;
The achievement of the proposed objectives will be based on a well-organized production system and a flexible and mutually beneficial distribution strategy. Also, one of the means of achieving success on the market is intended to be a major investment in the means of promotion among intermediaries.
The foundation of the company’s shares starts from the following premises, namely: the company will be permanently oriented towards the clients and towards the market. The entire activity and the entire staff will be channeled towards satisfying the demand of the intermediate and final clients.
On the Romanian market prevails the negative influence of the peasant production of eggs. The 5.5 billion eggs are made only in about. 7 months of the year (April – September), and together with the 0.6 billion produced by the industrial sector in the same period, 1 billion eggs per month, or nearly 40 eggs per capita. In the other five months of the year, there are almost only eggs produced by the industrial sector (around 0.5 billion), providing only 10 million eggs per month, or just 4.5 eggs per capita. This uninsured market leads to an excessive increase in the price of eggs during the cold season, as well as massive imports of eggs, which destabilize the domestic market, which can not be controlled with the very small amount of domestic eggs.
In Romania, only 1.2 billion eggs are produced under industrial conditions, which can be marketed according to GD 415/2004, ie to be sorted, marked, packed, stored at a temperature of maximum 14 ° C and marketed accordingly. The approx. 5.5 billion eggs produced in small peasant households can not be marketed in accordance with GD 415/2004, failing to comply with any of the conditions stipulated in the EU regulations. That’s why, after some of these eggs are used to snack and take out one day’s chicks, the rest is self-conscious or occasionally offered to the relatives and knowledge of the urban environment of agricultural producers.
With the establishment of agricultural holdings, micro-farms are encouraged, and agricultural holdings will gradually replace egg production of small agricultural producers, whose numbers and activity will gradually decline over the next period. Small farmers will continue to produce their eggs for self-consumption, and the urban population – currently 11.9 million, but gradually increasing – will only be supplied by current industrial producers, to which will be added producers with agricultural holdings (poultry).
But current poultry producers are likely to cut their production by half in the next few years as a result of banning current batteries in which eggs are growing, 600 million eggs, which would provide only about. 50 eggs per urban inhabitant, compared to 250 eggs as needed for rational feeding. It is estimated that some poultry complexes will be set up, or alternative EU-admitted batteries will be introduced in some of the current poultry complexes, but these capacity increases will be insignificant at a time when industrial poultry can only offer 20% of the egg production needed by the population. The establishment of poultry farms is not only in the interest of the new avian producers in Romania but, above all, it is of national interest.
Below are detailed information about the target customers, their common characteristics, and how they regard the main benefit of the supply of chicken eggs:
– distributors, legal persons;
– shopping centers, supermarkets;
– open to introducing new products to the end consumer;
– interested in building / consolidating values such as quality;
In the long run, we aim to maintain and loyalty to these customers and at the same time attract new companies interested in fresh, high-quality chicken eggs, which will also involve greater consumption of human, financial and material resources. Also, the penetration of the big hypermarket shopping centers will be monitored.
Competition is a strong one at the industry level and the following categories of direct competitors are noted:
– the main companies with distribution at national level (Toneli Group, Agricola Bacau, Agrisol);
– Poultry farms using bird battery technology.
Indirect competition is represented by:
– other types of eggs (quail);
– individual producers of chicken eggs (households);
Sources of future competition
Organic poultry farms are considered to be the main sources of future competition, because in the long run, the Romanian population will pay more attention to bio-certified products. At present, the bio-food industry is very poorly represented in our country, but in the long run it has multiple prospects for development due to global trends. In this respect, Egs SRL aims to open a bio production line in the coming years.
Entrance barriers on the market
The main barrier on the market is the lack of firmness of the farm and the strong position occupied by the big players on the hen egg market. Another barrier considers the lack of flexibility of some suppliers, which would aggravate the production process. Also, the flexibility and openness of distributors can be a barrier on the market, so we have been targeting a shorter distribution channel that is profitable in the current situation. In the future, it is planned to create its own distribution chain.
For the first year of activity we aim at the following objectives:
– winning a zonal renown;
– creating a professional image among distributors;
– achieving the proposed sales target: 7,300,000 eggs / year;
– Developing a network of at least 20 distributors.
Sales and distribution strategy
The sales strategy is designed to build a customer portfolio at the market entry. Sales activity will be carried out by the two sales agents within the Commercial Department and will be pursuing a result-oriented trajectory.
The selling technique to be implemented will be realized by contacting the representatives of the companies in the database in order to establish meetings to present the product offer available from Eggs SRL. Until a contract is concluded, there are a minimum of 2 meetings between sales and customer representatives to clarify the details of the distribution.
Promotion and public relations
The farm will benefit from both a logo and a slogan to be more easily recognized among customers:
As a means of promotion, the online communication environment (site, newsletter) and promotional materials will be chosen.
The site will be a presentation of the company and the benefits offered to collaborators, and the newsletter is intended to be an informative, interactive, built on the principle of customer service (intermediaries). Less emphasis will be placed on company description and articles and news with specialized content, of interest to distributors. Also, for special offers, they will be featured in this newsletter.
The Farming Presentation Map for Intermediaries will contain, besides presenting the company and the advantages of a collaboration, ideas for promotion among the final consumer, made available free of charge. This ensures that distributors are interested in making minimum efforts to sell their merchandise, gaining a farm benefit in addition to basic products. The deployable solutions available are:
– brochures with chicken recipes, food and beverage compatibility tips;
– informative brochures related to healthy eating;
– promotional items such as: tableware or branded plates;
The means of promotion will be supplemented by the sales activity carried out within the Commercial Department.
Products and services
The farm capacity will be 32,000 laying hens, properly groomed for optimum production. Fresh eggs will be packaged and labeled “in-house” to rationalize costs and will be distributed on contract basis to the shopping centers in the area.
The usefulness of the offer and the interest of the market
The opportunity of this business consists mainly in the qualitative comparison and the costs of producing eggs in peasant farms. Thus, there is an increasing interest in the market for the production of eggs intensively because the traditional production in Romania has the following disadvantages:
- local breeds of poultry grow with very low genetic and productive potential;
- the growth is done in inadequate shelters or even outdoors, a total system that is contraindicated to birds, which have a very high metabolism and do not express the productive potential with which they are endowed due to the excessive cold of winter and hot heat from the summer;
- feeding birds is deficient, consisting exclusively of cereals, not insuring the energy-protein nutritional need, to make economic curves of laying. An increased chicken in an intensive system produces 2.3-2.5 times more eggs a year, with a feed consumption on eggs of 2.4-2.6 times less.
Organization of the company and its management
Description of the management team
Business entrepreneurs hold equal shares in the share capital, as well as people involved in the firm’s business, in the actual management process. They will occupy the positions of Production Director and Commercial Director.
Being a start-up business, entrepreneurs will be actively involved in the management side along with the other executives who will be elected to lead the departments mentioned above.
Counselors will be represented by one representative from each sub-department. Decisions to this effect will be taken by the responsible department after prior consultation with all department representatives.
As the farm is on the market and does not have a customer portfolio (experience) so far, it will turn to key consultants in the field of agri-food economy, for a safer competition in the field and for a more efficient meeting of market demand. Also, a service contract with an accountant will be concluded.
We will follow the seasonal collaboration with:
– 2 veterinarians;
– transport company;
– provider of promotional materials;
Investors interested in financing part of the described business are to benefit from a 30% share of the new share capital following the investment.
Human resources management will be managed by both founders for each department. People are the core resource of the firm and therefore will invest in training the employees before starting work, in order to achieve the most competitive results.
Periodic training will be organized to motivate and update employees’ knowledge. Also, employee involvement will be initiated to create a farm-specific culture, which will have long-term positive consequences and will also be reflected in customer activity. In this sense, birthdays, names, official holidays, the celebration of the success of some campaigns, the month’s employee competition and other internal competitions to motivate employees will be celebrated, all of which aim to create a team.
The technology used
It is planned to build and put into operation 4 halls with a total area of 4000 sqm, with permanent bedding.
You will opt for building a closed, window-free hall with a ventilation system to ensure a proper microclimate both in summer and winter. In addition, the closed hall allows a light program according to the growing technology and ensures very good biosecurity, due to the limitation of pathogenic birds contamination, as compared to the growth in the open air or even in the halls with windows.
Consideration will also be given to the construction of a warehouse, complementary to the production activity, which includes: forages for fodder, materials, the plant for the production of feed requirements.
The equipment in the hall is calculated in such a way as to provide a transconic nutrient to 40-50 hens and a circular adapter to 100 hens. The height of the machine will be maintained, depending on the development of the hens, at the level of their back so that their birds can circulate under the machines without suffering traumatism and depreciation of the carcass, as well as to prevent the waste of feed.
Internal environmental conditions
Temperature above ground level: 35 degrees C in the first 3 days, then reduced by one degree to day 12, after which it is maintained. constant.
Humidity must be lower in the first development period and higher in the second growing period. Both humidities too high and humidities will be avoided (below 60% in the first few weeks and over 60% in the last few weeks).
c) Air currents
At temperatures in the area of thermal comfort, the air currents do not negatively affect the health of the pups. Care should be taken in case of lower temperatures.
d) Chemical factors of the microclimate
The ammonia concentration will not exceed 0.02%. Hydrogen sulfide will be admitted in 0.01% and carbon dioxide in the concentration of 0.5-0.6%.
The light index for halls without windows to be built (illumination is made only with artificial light) represents the intensity of light relative to the surface unit.
Keeping the light on all night will be avoided, not being economical nor followed by an increase in production; this is because birds need rest, which they can not enjoy when the light is lit all the time.
Sudden illumination consists in exposing birds to high intensity light for very short periods, using 1000-1500W lamps that light up 3-4 times a night for 20-30 seconds.
Ventilation greatly conditions the possibility of growing birds in enclosed spaces. As far as shelters without windows are concerned and with a width of more than 10 meters, the ventilation of the farm will be carried out by means of the electric ventilators.
The following limits will be accepted as regards the air circulation speed inside the halls:
-bird level 0.2-0.3m / sec;
-in the inlet and outlet ports, 1m / sec at most.
Bird’s air needs are closely related to age (ie, body weight).
Temperature, ventilation and light must be controlled by thermostats and programming clocks.
g) Ammonia concentration: maximum 0.2 per thousand.
Because the type of battery growth is more expensive and more difficult to operate, it will opt for ramping on a permanent bedding case where each hall occupies 8,000 16-week old puppies that are kept in production until the age of 77 to 80 weeks, after which they sacrifice and are replaced, after disinfection of the hall, with a new series of 8,000 pucks.
In terms of 4 halls, the increase of 32,000 heads is envisaged.
The farm produces four types of production, one of which is self-consigning and another three is delivered as commodity production. Self-Containing Products: Combined Fodder: 1,168 tons of compound feed in a micro-FNC, the average daily quantity produced during the 5 working days of the week being 4.8 tons and a maximum of 4.16 tons. Every day, two workers serve this micro-FNC for 3 hours for grinding, dosing, kneading and storing the resulting compound feed.
The green meal lucerne will be bought (24,000 kg in the summer) and small amounts of alfalfa (5 to 10 g per hen and day) will be given daily, both to supplement the vitamin and protein requirements, and to give birds a concern.
The exploitation also resulted in 30,000 reforming chickens, out of the 32,000 introduced to growth (loss of 2,000 heads – 6%). At an average weight of 2.2 kg / chicken, 66,000 live birds are born. Note that the production cycle is 64 weeks (4 weeks as chick, 57 weeks for laying and 3 weeks for sanitary vaccinations), and only at this time a series of reformulated chickens results.
On average, one year is obtained: 52/64 = 81.2%, 66.000 x 80% = 52.800 kg live birds on average per year. After a period of 65 weeks, a very valuable natural fertilizer results from exploitation. The amount of poultry manure per production cycle is 1.5 times the amount of fodder consumed, ie approx. 200 kg of poultry manure, or approx. 1,520 tons per production cycle.
This garbage can fertilize annually 152 ha of arable land, administering 10 tonnes per hectare.
A normal cycle, with the heifers at the age of weeks, is 61 weeks long,
– Accommodating 4 weeks (16-20 weeks)
– 57 weeks egg production (age 20-77 weeks)
The 64-week cycle of laying implies the use of the halls at 81.25% per year, ie: 52 weeks / 64 weeks = 81.25%
On the other hand, the average staff is 97% compared to the initial one (100% in the population, 94% in the reform), which leads to the next year’s average annual labor force: 81.25% x 97% = 78.8%
In the case of a popular of 8,000 16-week old chicks, the annual average per hall will be: 8000 x 78,8% = 6,304 heads, and on all 4 halls: 25,216 heads
At an average production of 289.5 eggs per hen (78.3%), there is a total annual production of 7,300,000 eggs.
The investment will require a total land area. 1ha, allocated as follows:
– 4 halls x 1000 m;
– Office building: 1600sqm;
– Deposit: 900mp;
– External space for silos, logistics area and further developments: 3,500mp.
This land is owned by the founders of the business.
Suppliers are decisive in the development of the activity and the contracts with them are necessary to be advantageous in the conditions of market entry of the farm.
The storage needs will be provided by 2 silos – for feed and a storage for technological equipment. For egg products no storage space is required because it will be transported to the distributors contracted immediately after packaging.
Feed stocks as well as the actual production of the farm will be controlled by daily and obvious reports in the database.