Introduction
Dog breeding is the practice of mating selected specimens with the intent to maintain or produce specific qualities and characteristics.
The German shepherd, from Germany, was originally bred for herding and guarding sheep. Its origins date back to the 700’s. The German shepherd Dog is also known by the other names of Alsatian and Deutscher Schaferhund. The advent of the two World Wars influenced the history of this dog.
Production Capacity
This farm will be capable of producing 50 dogs in a period of six months.
Capital Investment Requirements and Equipment
This Farm will be operated locally on small scale, i.e. 30 shepherd Dogs kept on a plot of land. The Fixed Capital Investment required to start this project is NGN 19,344,500, and the revenue potential is estimated at NGN 24,000,000 with a net profit margin of 28%. The payback period of this project is 2 years.
Market Analysis
There is a high demand for German shepherd Dogs, especially in schools, households, farms, and industries among others. However, they may also be exported.
Project Costs
The projected costs of production are summarized in the Tables below:
Capital Investment Requirements (CBN exchange rate -$1 to 415.64 NGN) as of 28th July 2022
| Capital investment item | Units | Qty | Cost in
NGN |
Cost in USD |
| Land | Plots | 1 | 200,000 | 481.186 |
| German Puppies | No. | 30 | 900,000 | 2,165.335 |
| Gas cooker | No. | 1 | 14,000 | 33.683 |
| Tip Dishes | No. | 15 | 10,000 | 24.059 |
| Puppy pans | No. | 15 | 10,000 | 24.059 |
| kennels | No. | 5 | 75,000 | 180.445 |
| Spraying pump | No. | 1 | 7,500 | 18.045 |
| Wheel barrows | No. | 1 | 10,000 | 24.059 |
| Spade and pangas | No. | 2 | 4,000 | 9.624 |
| Hand hoe and rakes | No. | 2 | 5,000 | 12.029 |
| Thermometers | No. | 2 | 4,000 | 9.624 |
| Weighing scale | No. | 1 | 4,000 | 9.624 |
| Water tanks | No. | 1 | 13,000 | 31.277 |
| Water basins | No. | 15 | 10,000 | 24.059 |
| Total cost of machinery | 1,266,500 | 3,047.108 |
Production and operating costs
| Cost Item | Units | @ | Qty/
day |
Pdn cost/ month in NGN | Pdn cost/ year
In NGN |
Pdn cost/ year
In USD |
| Dog food | kg | 54,000 | 50 | 1,404,000 | 16,848,000 | 40,535.078 |
| Water | litres | 3,000 | 50 | 78,000 | 936,000 | 2,251.949 |
| Sub-total | 63,000 | 1,482,000 | 17,784,000 | 42,787.027 |
General costs (overheads)
| Cost Per Month
NGN |
Cost Per Year
NGN |
Cost Per Year
USD |
|
| Utilities( gas ) | 4,500 | 54,000 | 129.920 |
| Labour | 20,000 | 240,000 | 577.423 |
| Sub –total | 24,500 | 294,000 | 707.343 |
| Total Operating Costs | 1,506,500 | 18,078,000 | 43,494.370 |
- Production is assumed for 312 days per year.
- Depreciation assumes a 25% write-off for all assets.
- A production Month is assumed to have 26 days.
Project product costs and Price structure
| Item | Qty /per 3 months | Qty/yr | @ | Pdn cost /yr
NGN |
Pdn cost /yr
USD |
TR
In NGN |
TR
In USD |
| Puppies | 30 | 120 | 200,000 | 18,078,000 | 43,494.370 | 24,000,000 | 57,742.277 |
Profitability Analysis
| Profitability Item | Per three month | Per Year
NGN |
Per Year
USD |
| Revenue | 6,000,000 | 24,000,000 | 57,742.277 |
| Less production and
operating Costs |
4,519,500 | 18,078,000 | 43,494.370 |
| Profit | 1,480,500 | 5,922,000 | 14,247.907 |
Sources of Supply of Raw Materials:
Raw materials will be locally sourced from Farmers who have already invested in the sector, Animal Husbandry Research Organizations & Centers in Africa.
