Afghanistan: Consultancy:feasibility studies & business plans for poultry feed plant, poultry hatchery plant and poultry processing plant in Baghlan, Afhanistan

The Aga Khan Development Network (AKDN) is a group of international, private, non-denominational development agencies and institutions that seek to empower communities and individuals, usually in disadvantaged circumstances, to improve living conditions and opportunities. The Aga Khan Foundation (AKF) is part of AKDN and has been working in Afghanistan since 2002, with programs focused on Rural Development, Education and Health.

1.Rationale

Market Development Programme (MDP) of Aga Khan Foundation – Afghanistan (AKF, A) is involved in developing selected value chains in its program provinces. Poultry is one of the value chains, selected and supported either now or in the past in all of its program provinces. It has been working mainly with the backyard poultry and few semi-commercial poultry farms in Badakhshan and Bamyan, whereas its involvement in Baglan and Takhar ranges from start-up support for women-run backyard poultry farms to advisory and link-up assistance for semi-commercial and commercial ones.

Poultry – as a source of nutrition supplement; as a main source of income for women; and as a diversified income source for small-holder farmers – is seen important for the livelihood of rural population. In addition, the commercial and semi-commercial poultry farms in urban area are supporting the national economy through import substitution and job creation.

In recent years, demand for chicken and eggs has increased both in the rural and urban markets. Therefore, more and more people are becoming interested to invest in the sector. But, few of the key constraints are preventing the growth of a competitive and large-scale commercial poultry industry in Afghanistan. These constraints range from limited access to high quality chicks for rearing to better quality feed and hygienic processing system. Currently, majority of the day-old chicks are coming from Pakistan. The journey from the hatchery unit to the poultry farm is both long and treacherous. This has resulted in higher mortality rate among the chicks in transit as well as vulnerability of transferring diseases. The mortality rate during transit, transportation cost and import taxes put additional top-up on the total cost of a day-old chick. In addition, most of the feeds are also being imported by input suppliers from neighbouring countries. Again, the transportation cost and import taxes make the cost of imported feed very high. Finally, in the absence of scientific processing plant, bulk buyers like super markets, hotels and guesthouses, and foreign troops stationed in Afghanistan are forced to import the processed poultry products from outside.

Therefore, AKF under its Market Development Program (MDP) is exploring the possibility to facilitate in the establishment of a hatchery plant, a feed production plant and a processing plant in Baghlan province program area. This will help in commercialising the sector and providing cost competitive alternatives to the existing and future poultry farmers.

In order to realise this idea, AKF feels a need of realistic and detailed feasibility studies conducted for all three poultry related ancillary plants. In addition, detailed business plans for these plants are also required to be developed, which in near future will help the interested individuals to invest in these plants. To operationalize this idea, AKF is looking for an experienced consultant who can conduct such feasibility studies and also develop required business plans.

2.Objective

The objectives of this assignment are:

1. To conduct feasibility studies for the establishment of hatchery plant; poultry feed plant and processing plant in Baghlan program area.


2. To develop detailed business plans for these poultry related ancillary industries.


3. Main Duties and Responsibilities

The expert will develop the feasibility studies covering the following:

• Current market situation of day-old chicks, poultry feed and processed poultry products in the country in general and in the program areas in specific, including a forecast for demand and supply trend in the near future;


• Analysis of the strengths and weaknesses of the proposed ventures.


• Opportunities available under the proposed ventures.


• Suggestions on the methods to tap into these opportunities.


• Potential obstacles for the proposed ventures.


• Suggestions to overcome such obstacles.


• Suggestions on how women poultry farmers can benefit from these facilities.


• Cost-benefit analysis or profitability analysis of setting up these facilities.

The expert will develop the business plans covering the following:

1. Legal requirements


2. Technical requirements


3. Equipments and infrastructure requirements


4. Logistics and human resource requirements


5. Production processes


6. Product classifications


7. Pricing mechanism


8. Classification of potential buyers and consumer behaviour mapping


9. Promotion mechanism


10. Sales forecast


11. Profit and loss forecast


12. Detailed financial plan

4.Qualifications Required

· The expert should have at least 5 years working experience on enterprise promotion and economic development issues.

· S/he should have analytical skills and excellent knowledge of poultry value chain development.

· S/he should have prior experience of conducting feasibilities and developing business plans.

· S/he should have a postgraduate degree in relevant discipline.

· S/he should have excellent communication skills and fluency in English.

5.Deliverables

The expert will prepare and submit AKF Kabul office the following:

· Feasibility report and a business plan for a hatchery unit.

· Feasibility report and a business plan for a poultry feed plant.

· Feasibility report and a business plan for a processing plant.