Feasibility Offered For Meat Business
(Muhammad Wajid Javed,M. Iqbal Bhatti & Junaid Hafeez)
Feasibility is sort of technical consulting writing, calculations and reviewing in order to have a general and wide area look on different aspect of business or industrial actions a person is going to adopt. It gives a quick over view of the expected finance as well as income or profit obtained in a particular territory of the business links. Besides other useful aspects an important point of feasibility writing is that it gives a view of profit and loss. Hence, it enables a businessman to be or not to be a part of business on the bases of inferences drawn by the feasibility approach. So, it is much vital to have loss on paper by considering feasibility studies rather than undergoing loss in actual way. Loss of paper for feasibility writing is bearable but loss of capital of finance is totally unbearable which occurs without giving a prior significance to feasibility.
Meat business and feasibility comprises of different aspects of earlier considerations and equity of attention. This normally involves the purchase of animal with a certain weight and age; fatten them for a particular period of time, then sale in the market on the basis of weight gain.
This consists of money required for the beginning of a business. Such thing consist of fixed cost which is about Rs.1385231and similarly recurring or daily expenses are also included in this
category. Total cost is Rs.1556581.95.
a. Fixed Cost:
Cost is the basic thing that is always associated with every business and its means (i.e. Fixed or variable ones).
It contains of animal, building, equipment, land etc.
Animal or calf is the pivot of this business. For this purpose, if we purchase calves with two years age and hence of 250 kg weight approximately, its price is according to its weight and area from where it is purchased. e.g. in Potohar platue per kg price is Rs.75-80 and in areas near to big cities, it is Rs.140 etc.
This needs no special construction areas as milking parlor, standing areas etc. so, the space per animal is 50 sq ft rather than 64 sq ft for dairy animals. Covered area and similarly open area is the double of that area. Construction cost can be adjusted to Rs.250 etc because no extra attention is needed. Building has simple layout as:-
No special equipment are required but some others are:-
Land is of building but may include land for fodder, owned or on lease etc.
Above table describes the usage of fixed assets in the period of one year and hence their cost contribution because whole cost of building and equipment are not used in a single year. Here, animals’ cost is excluded because animals will be removed from building after the recommended time.
B. Recurring Cost
Other category of cost is the recurring cost; a distinct share in sustaining this business is used by this. It comprises of feed, labour, medicines etc. Here, these expenditure are low because there is little attention and care needed by beef animals.
Income is generated mainly by the sale of animals on their weight gain. Price per kg of weight may be Rs.140 in normal routine or Rs.250-300 near special occasion as EID-UL-AZHA for Muslims and marriage ceremonies for the followers of other religions too. Such situation of marketing time brings a huge variation in income.
Taking the profit (i.e. Main goal of any business or enterprise) we will be in a position to adopt that plan in a practical way. Profit=income-total cost, profit margin=profit/total cost. Profit margin shows that how much money is earned by the expenditure of Rs.1.
Percentage expenditure of 1 kg of meat:-
By analyzing percentage expenditure on one kg of meat, we will be in a position to note how much one kg fattening of calf costs to us. Hence, on what price we will have to market them.
By taking into account of above all aspects certain minor entries can also be done for the view business record and more precise assessment. Final profit and per unit cost are crucial for the adoption of a business. So, including the planning of business with respect to some other realities, cost-benefit ideas must be comprehended. Hence, by this consideration, a person will able to done the assigned or opted job on sustained and successful foundations.
1. Muhammad Wajid Javed is student of B.Sc. (Hons.) Agriculture (Department of Agri. Entomology, University of Agriculture, Faisalabad.) Mob.0313-7070047 e-mail[email protected]
2. Iqbal Bhatti is affiliated with Agrihunt as an author.
3. Junaid Hafeez is student of B.Sc. (Hons.) Agri. Extension( Institute of Agri. Extension and Rural Development, University of Agriculture, Faisalabad). He is also Director Agrihunt Scholarships.
. Mob.0303-4309053 e-mail: [email protected]
[email protected] 0303-4309053