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AFRICABIZ VOL 1 - ISSUES: 76 & 77
AUGUST 15 - OCTOBER 14, 2005
Previous Issue
Editor: Dr. Bienvenu-Magloire Quenum
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A WORD FROM THE EDITOR


Dear visitor and international investor,


If this is your first visit to AFRICABIZ ONLINE Monthly Issue - The ultimate newsletter on trading and investing in 48 sub-Saharan African countries - we warmly welcome you. If you are a regular and faithful reader, welcome back.

- THIS DELIVERY STANDS FOR TWO ISSUES

AFRICABIZ Online's Editorial Team is taking one month break from September 1 to September 30. Therefore, this delivery covers two months: August 15 to September 14 - Issue N° 76; and September 15 to October 14 - Issue N° 77. The next issue N° 78 will be online on October 15, 2005.

- THE INTERNATIONAL EMPLOYMENT CENTRE

Africabiz Online's team is proud to announce the International Employment Centre that is live online since end July 2005.

The platform is the worldwide meeting point for exchange of talents and expertise between jobs seekers and employers (international companies, governments, non governmental organizations and international institutions) - in all line of businesses.

If you really wish to stand out of the crowd as a job seeker, you have to post your resume in the International Employment Centre. Posting is free for jobsseekers.

If you, as an Employer wish to recruit the best expertise available worldwide, the International Employment Centre is the platform to consider; and save money and time.

Employers had the opportunity with The International Employment Center to post several jobs' recruitment ads for a fractional cost of posting in other media (Radio, paper media and TV).

A registration for 20 posting (to be used according to your need and personnel schedule) costs you less than one ad inserted in a traditional media. Further, an ad stays visible worldwide for a longer period - up to 45 days compared to one day (daily newspaper) to maximum seven days (for a weekly magazine).

For more on how to efficiently use the International Employment Centre, click here

- A BUSINESS PLAN ALONE IS NOT ENOUGH FOR EFFICIENT PROJECT DEVELOPMENT

Last delivery dealt with the inadequacy of Development Schemes carried out in African nations. The main reason being the lack of convergence with the sociologic composition of the populations. As long as African countries' rural areas economic situation would not improve, poverty would prevail in Africa. The only way to alleviate poverty in African countries is to raise the purchasing power of rural folks. Indeed, they represent 60 to 80 percent of the total populations.

The sociologic inadequacy above briefly outlined, however, is not the only reason development schemes carried out in Africa since decades failed to improve African nations' economic situation, creating jobs to cope with demands and building up riches for all. These schemes failed to boost the economic development in African countries because they were "static" schemes. They lack the dynamism necessary to drive the economy upward. The consecutive failure stands as a vivid proof one needs more than a business plan to efficiently run an operation - in any business line.

Click here to read about Why You Need a Business Planning System not a Business Plan

- Contributor's Guidelines are here to review. Your contribution on "How emerging nations and particularly African countries / entrepreneurs could bridge the developing gap" is welcome.

Your feedback / objection / contribution is welcome. Visit WorldWide BizCenter, and choose General Information (as topic) to create a thread for discussion. On the top of the WorldWide BizCenter page, there is a HELP link to assist you making an efficient use of the discussion board. This link also is useful


Many thanks for dropping by and see you here on October 15, 2005.

Dr. B.M. Quenum

Editor of AFRICABIZ

Contact Dr. Bienvenu-Magloire Quenum

BUSINESS OPPORTUNITIES IN AFRICA


- Several business opportunities - component parts of the Integrated Developing Scheme described in Africans, Stop Being Poor! are listed in following table.


a- SHEA BUTTER (5, 6, 7, 11, 12, 13)
b- BLUE GOLD (14, 15, 16, 17, 18, 19)
c- FREEZE-DRIED PAPAIN (20, 21, 22 and here)
d- KENAF (23, 24)
e- VEGETABLE OIL (25, 26, 27, 28)
f- CEREALS (30, 31, 32, 33)
g- FRUITS (34, 35, 36, 37, 38, 39, 40, 42, 43, 44, 45, 46)
h- ESSENTIAL OILS (47, 48, 49, 50, 51, 52)
i- ROOTS & TUBERS (54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64)
j- FOWL BREEDING (66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76,


- FOWL BREEDING AS BUSINESS OPPORTUNITY: PART X - INTRODUCTION TO THE BREEDI NG OF RATITES AS ALTERNATIVE TO CLASSIC LIVESTOCK: D - INVESTMENT BRIEFS ABOUT A SMALL SCALE EMU'S "NATURAL" BREEDING OPERATION

Investment briefs here described are related to production organization exposed in previous issue and particularly to the following considerations:

Five pairs of females and males ready to mate - unrelated i.e. originating from different stocks - to limit the degeneracy of the flock.

Table below gives an idea of the flock's evolution (yearlings, eggs and adult birds ready for slaughterhouse); assuming an average of 30 eggs laid per female, 50% eggs' fertility and birth's parity (50/50) between males and females.

The eggs hatch in 52 days, producing a chick that walks right away. From twelve to sixteen months of age, they will reach their full weight of 120 to 150 pounds (Source):


Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Eggs from original stock (5 pairs) - - 150 - - 150 - - - - - 150 - - 150 - - 150
Baby Emu Chicks from original stock - - 75 - - 75 - - - - - 75 - - 75 - - 75
Chicks for sale from original stock - - 25 - - 25 - - - - - 25 - - 25 - - 25
Chicks to breed to final stage - - 50 - - 50 - - - - - 50 - - 50 - - 50
Laying Birds derived from original stock - - - - - - - - - - - - - - - - - 25
Infertile eggs from original stock - - 75 - - 75 - - - - - 75 - - 75 - - 75
Eggs from new birds - - - - - - - - - - - - - - - - - 750

- INVESTMENT BRIEFS ABOUT A SMALL SCALE "NATURAL" EMU'S BREEDING FARM

One sees, reviewing figures on above table, that starting from the 60 days that follow the acquisition of the initial stock of adult emu birds, the investor could start garnering some return on investment selling baby emu chicks to breeders. Chick under 3 months old could sell US$ 75-100. Those aged 3-6 months US$ 100-250; while birds aged 6 to 10 months could reach US$ 300-450 each. Yearling aged 12-15 month could fetch US$ 500-800. For more on pricing click here

In addition, starting from the 18th month of operation, 50 birds - the first hatched during the first three operating months - weighting around 120-150 pounds each, are ready for sale for premium quality meat, plus around 1,500 eggs that are available for hatching or for resale. The evolution of the flock size shows how quickly the farm could grow and profits soar. The usage of flock management software is highly recommended. One called OSTRISH FARMER is here available to review

To summarize, for the investment briefs' calculation reported in table below we consider that a pair of Emus produce an average of thirty eggs a year, which yield on average 15 chicks bred for final stage at the end of 18 months. Each bird ready for slaughterhouse would yield 4m2 of leather, 54 kg of meat, 5.5 kg of feathers, and 2.7 liter of oil - generated by 20 pounds / 9.070 kg of fat.


Items
Amount
US$
INVESTMENT

1- Pen organization: Land preparation - Fencing - Separation of plots - Shelters - Gates between pens - Etc.

4,500

2- Initial Stock of Emus (five pairs of males and females)

15,000

3- Other Equipment: Incubators - hatchery - Brooder - Oil processing equipment. Etc.

175,500

4- Starting expenses: Feasibility study / Business Plan - First three months operating expenses. Etc.

15,000

Total investment

209,000
REVENUES OVER 18 MONTHS
a- Three-month chicks sold: 175 chicks at US$ 150 each
30,625
b- Meat from mature birds ready for slaughterhouse - package for the export market: 54 kg x 50 x US$ 10
27,009
c- Emu oil: 2,7 x 50 x US$ 100
13,500
d- Infertile eggs for consumption: US$ 50 (per dozen) x 31 dozen
1,562
e- Leather for the export market: 4 sq meter x 50 x US$ 25
5,000
f- Feathers for the export market: 5,5 kg x 50 x US$ 10
2,750
Total revenues (over 18 months)
80,446
OPERATING COSTS

Operational Expenses: one supervising staff salary and flock feeding (US$ 50 per bird)

60,000
GROSS PROFIT 20,446

REMARKS: Gross profit reported on above table's last line does not reflect the reality of the operation's profit making potential.

Figures reported gives just an idea of the beginning of the business. For instance, operational expenses expand over the entire flock. However, to be accurate calculating gross profit, one should consider only the number of birds that provide Revenues listed as a- b- c- d- e- and f- in above table, which is something around US$ 5,000 (supervising staff salary plus the feeding's cost of 50 mature birds bred to final stage and ready for slaughterhouse. That amount helps evaluating the production cost of one kg of Emu meat: [US$ 5,000 divided by (50 x 54) = 1.85 US$)].

The production cost of one kg of Emu meat as above briefly outlined, gives an idea of the profit margin available raising Emu in tropical countries.

Further, profits would soar after 24 months of operations, when the number of birds ready for slaughterhouse increases to reaching 150, which means that revenues are multiplied by three. It is also possible to produce delicatessen product such as sun dried or smoked Emu meat that would fetch higher pricing on the export market.

Emu's breeding business is a niche operation that requires highly organized production schedule (flock management'' software is an absolute necessity) and strict management practice focused on birds' feeding costs. Australian Emus consume a diet that is almost exclusively made up of natural leaves, bushes and insects that provide the Emus with a resistance that birds in captivity do not have. A diet that avoids chemical additives is thus the best to better the quality of all emu' products and particularly the Emu oil, while protecting the animal from diseases.

Artificial insemination is an alternative to natural breeding as exposed in the current delivery. It would help have less infertile eggs, more laying birds and less males in the flock to feed.


MORE ON FOWL BREEDING
1- Poultry Breeding and Genetics
by R.D. Crawford
2- The Dollar Hen: The Classic Guide to American Free-Range Farming
by Milo M. Hastings, Robert Plamondon
3- Small-Scale Poultry-Keeping: A Guide To Free-Range Poultry Production
by Ray Feltwell
4- The Encyclopedia of Farm Animal Nutrition
by M.F. Fuller, et al
5-
The Mating and Breeding of Poultry
by Harry M. Lamon, Rob R. Slocum
6- Modern Livestock and Poultry Production
by James R. Gillespie

7- Success With Baby Chicks: A Complete Guide to Hatchery Selection
by Robert Plamondon
8- The Classic Guide To Poultry Nutrition:
Chickens, Turkeys, Ducks, Geese, Gamebirds, and Pigeons
by Gustave F. Hauser
9- The Strange History of The Ostrich
In Fashion, Food and Fortune
by Rob Nixon
10- Ostrich's Avian Incubation: Behaviour, Environment and Evolution
by D. Charles Deeming

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