Adding Value to Chicken for Safe Consumption
In Kenya, chicken is a staple in many households, hotels, schools, and restaurants. However, the consumption of chicken in its rudimentary form poses risks to human health. To address this concern and add value to the poultry industry, the establishment of a poultry processing plant becomes essential. This blog explores the process, benefits, and government support for setting up a poultry processing plant in Kenya.
Meeting Market Needs: Capitalizing on High Demand
The demand for processed chicken is on the rise, driven by the need for safe and convenient food options. By setting up a poultry processing plant, entrepreneurs can cater to the increasing demand from households, hotels, schools, and restaurants. This venture requires a capital investment of US$36,030. With the right strategies, it is projected to yield annual revenue of US$993,720, with a payback period of only 4 months.
Streamlined Production: Technology and Process
The poultry processing process involves several stages that ensure the production of safe and high-quality chicken products. Automated machines, such as the head remover and picking machine, facilitate the removal of feathers from the birds. The eviscerating equipment is then used to clean and pack the birds, which are then stored in a chilling machine ready for distribution. This streamlined process guarantees efficiency and maintains the freshness of the chicken.
Cost Considerations: Overheads and Direct Production Costs
To ensure profitability, it is important to consider the various costs associated with poultry processing. Production costs are estimated based on a daily capacity of processing 325 birds, assuming 312 operational days per year. Depreciation is calculated at 25% per year for a 4-year asset life, covering all fixed assets. Direct costs encompass materials, supplies, and other expenses directly involved in the production process. By carefully managing these costs, entrepreneurs can optimize their operations and maximize profitability.
Government Support: Agricultural Fund and Investment Opportunities
The Kenyan government recognizes the importance of the agricultural sector and provides support to entrepreneurs in the poultry industry. An agricultural fund has been established to assist in financing agricultural projects, including poultry processing plants. Additionally, there are investment opportunities through the European investment fund, which specifically targets such areas of investment. By leveraging these government facilities and incentives, aspiring poultry processors can access the necessary resources to establish and grow their businesses.
Setting up a poultry processing plant not only enhances food safety but also meets the increasing demand for processed chicken in Kenya. By adopting modern technology, managing costs effectively, and leveraging government support, entrepreneurs can tap into this thriving market and contribute to the growth of the poultry industry.
