Satisfying the Festive Season Demand for Turkeys
Turkeys are in high demand during festive seasons, with customers ranging from supermarkets to canteens, universities, schools, and hotels seeking reliable and consistent suppliers. The business idea of turkey packing presents a promising venture in Kenya, with a capital investment cost of US$14,500 and an estimated annual revenue of US$116,813. In this blog, we will explore the turkey packing process, the capacity and technology involved, general costs, and government incentives available to support such a business.
Process, Capacity, and Technology: Meeting Varied Customer Needs
The turkeys used for packing are obtained from local farmers who rear healthy turkeys. These birds are then taken to a slaughterhouse for slaughtering, dressing, and dissecting. The turkeys are sorted according to size, and some may be cut into pieces for packaging. The packing options include whole turkeys, half or quarter pieces, specific parts such as wings, breasts, bulbs, gizzards, and even de-boned turkey meat. This variety allows for meeting the diverse needs of customers during festive seasons.
General Costs: Calculating Overheads and Direct Costs
To estimate the costs associated with turkey packing, we assume production costs for 312 days per year with a daily capacity of 48 boxes. Depreciation is accounted for with a 4-year asset life, with assets written off at 25% per year. Direct costs encompass materials, supplies, and all other costs directly involved in the production process. By carefully considering these costs, entrepreneurs can ensure efficient operations and optimize profitability.
Equipment Sources: Local Fabricators and International Options
Obtaining the necessary equipment for turkey packing can be done locally through fabricators or through importing from countries like India or China. By supporting local fabricators, entrepreneurs contribute to the growth of the local economy while ensuring access to reliable and quality equipment. Additionally, importing equipment can provide access to advanced technology and specialized machinery.
Government Incentives
The Kenya Investment Authority provides guidelines on investment, government incentives, policies, and security matters. Entrepreneurs in the turkey packing industry can leverage these resources to gain insights, access incentives, and navigate regulatory frameworks effectively. Such support promotes a conducive business environment and encourages investment in the poultry sector.
Turkey packing presents an exciting business opportunity in Kenya, especially during festive seasons when the demand for turkeys is high. By understanding the process, managing costs efficiently, sourcing equipment strategically, and utilizing government incentives, entrepreneurs can meet the needs of customers and contribute to the growth of the poultry industry in Kenya.
