Croman Feather Farm Business Plan: MBA Program, June 2021

This document presents a comprehensive business plan for Croman Feather Farm, a community-based broiler production venture in Antigua and Barbuda. The plan outlines the company's mission to provide quality, affordable chicken, and details the external environment, including political, economic, social, technological, environmental, and legal factors influencing the business. It includes an industry analysis, competitive analysis, and organizational structure. The plan details the company's strategy, process map, SWOT analysis, and risk management. It also provides sales estimations and a cash flow statement, showcasing the financial aspects of the venture. The project aims to reduce chicken importation and promote job creation, with a focus on producing 10,000 broilers per cycle, running seven cycles per year, with a total budget of $150,000.00.

CROMAN FEATHER FARM
BUSINESS PLAN
Croman Feather Farm Ltd Ltd is a community-based production facility that produces
10,000 broilers per cycle, running 7 cycles per year. CFF is committed to providing
quality, fresh, non-hormones injected chicken (meat) at affordable prices, unmatched to
any competitors.
Name: Carmen J Espinosa Roman
Email: [e-mail]
Date: 20th June, 2021
Program: MBA

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1. TABLE OF CONTENTS
EXECUTIVE SUMMARY .............................................................................................................. 3
Venture price ............................................................................................................................. 3
GENERAL DESCRIPTION OF COMPANY ...................................................................................... 4
Company’s mission, vision and objectives ................................................................................ 4
Objectives .................................................................................................................................. 4
THE EXTERNAL ENVIRONMENT THAT COULD AFFECT THE BUSINESS.......................................... 4
Industry analysis and trends ..................................................................................................... 6
Competition analysis ................................................................................................................. 7
ORGANISATION AND MANAGEMENT ........................................................................................... 8
Company’s management .......................................................................................................... 8
Management structure ....................................................................................................... 9
Motivation and development plan ........................................................................................... 9
Total employment and management costs .............................................................................. 9
STRATEGY .................................................................................................................................... 10
Companies process map ......................................................................................................... 10
SWOT analysis ......................................................................................................................... 10
Risk management ............................................................................................................. 11
LAUNCHING THE VENTURE ..................................................................................................... 12
Sales estimation ................................................................................................................... 12
CASH FLOW STATEMENT ............................................................................................................. 13
References ................................................................................................................................... 14

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EXECUTIVE SUMMARY
The name of the business venture that has been chosen is CRoman Feather Farm. CRoman
Feather Farm is a community-based venture and it is set up to promote job creation, poverty
alleviation and economic development and reduce the importation of chicken. The stakeholders
encompass areas such as the community, local regional and international bodies, suppliers,
corporate business, and retailers. The venture will specialize in the production of broiler (chicken
for meat purposes), it will purchase day-old chicks and raise them to a productive cycle over six
(6) weeks. There is a budget of USD $150,000.00 for all the expenses and other capital
investments. The venture’s location is yet to be assessed but it will be away from the residential
area. Croman Feather Farm will be brooding 10,000 chicks per cycle with a running of 7 cycles
per year. Each broiler is expected to weight 4.4 lbs. An output of 154,000 pounds (lbs) for the first
is forecasted.
CFF is not only interested in meeting the demands of customers, but also create the utmost
satisfaction for the potential customers. CFF plans to produce a product with high quality and
maintain a consistent supply.
Venture price
The Total budgeted price for the venture is One hundred and fifty thousand United States Dollars.
(150,000.00 USD).

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GENERAL DESCRIPTION OF COMPANY
Company’s mission, vision and objectives
Mission statement:
Our mission is to provide our customers with quality, fresh, nutritious, protein-rich, affordable
and non-hormone injected product while respecting our employees, provide quality service and
contribute to the community through social development programs. CFF plans to increase our
production of chicken and challenge the ever-growing demand for chicken in Antigua and
Barbuda.
Vision statement
Our vision is to become the leading commercial poultry farms and chicken brands in Antigua
and Barbuda and the region.
Objectives
Short term objectives (1 year):
• Winning the hearts and taste of our consumers
• Establish a brand image of the company through marketing campaigns.
• Turn Profits within the first three (3) months of operations
• Maintain a gross margin of less than 50%.
Long term objectives (2-3 years):
• Being the “Best and Most Hygienic poultry producer in the Island”
• Aim to reduce importation per year by 15.04%
THE EXTERNAL ENVIRONMENT THAT COULD AFFECT THE
BUSINESS
External environment of a business consists of all those external factors that are operating outside
the premises of the organization. However, they impose a significant influence over the
operations, survival and growth of the company (Shaw, 2018).
The factors that could affect Croman Feather Farm are:
Political
• Antigua and Barbuda Investment Authority (ABIA), Inter-American Institute for
Cooperation on Agriculture (IICA) presents opportunities for the venture in term of
ownership, management and procurement. They strive to create linkages, partnerships
that are mutually benefiting regarding results. This enhances competitive and sustainable
growth.
• The Promotion of Small and Medium Companys (SME’s) in Antigua and Barbuda has
been intensified. In light of the poultry industry, the establishment of the Antigua and
Barbuda Poultry Association (ABPA) has been a great development like it in thinking with
the government.
• The venture will most likely benefit from Agricultural based skills and development from
the Ministry of Agriculture.
• Opportunities to access the export market as well as benefit from the export initiatives by
organizations, this can open up opportunities for the venture.

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Economic
• The potential for an increase in fuel prices will be a threat to the venture in terms of
transportation cost and generator back up cost. This will cause an increase in production
cost which will affect product price.
• Fluctuation rates can affect the importation cost of raw materials (chicks, feed, disease
prevention, control meds). This will result in a lower gross margin and increased cost of
sales.
• Potential for increase in water price. Water provision in Antigua and Barbuda is heavily
reliant of supply through desalination method.
• Increase in electrical prices, this poses a direct threat to the venture and consumers. This
leads to increased cost and may cause a reduction in sales.
• Inflation- Increase in cost can be inimical to the venture and could potentially reduce
market share. The trade-off between employment and inflation is one factor to be
considered.
Social
• The continued increase per capita consumption will be an opportunity for the venture.
• Population increase will lead to more potential customers for the venture.
• The increase in the middle class has lead to increased disposable income. This will allow
more people to access the venture.
• Unemployment is at an all-time high in Antigua and Barbuda, especially now that now
that we are experiencing the first wave of Covid-19 (Brief, 2020). This has been adversely
affecting the market.
Technology
• Delivery trucks with cooling systems are within the scope of the venture
• Technology is available in the market to simplify record-keeping, accounting and other
technological processes. This venture will use technology that will be beneficial for
marketing and other purposes.
• Through advances technology, Operations can be more efficient. Such activities like
feeding, ventilation, room temperature can be controlled by automated technology.
• New technological developments for poultry farming presents lucrative opportunities for
the venture through enhance productivity (Mainara Cristina Lorencena, 2019). This
venture is open to benefit from advanced technology in areas of marketing, distribution,
operations etc.
Environment
• It is imperative to conduct an Environmental Impact Assessment (EIA) to assess the
negative and positive outcomes on the environment. Where effects are not detrimental,
the venture will be given the green light.

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• The usage of chemicals and control substances for disinfection of poultry houses could
harm the environment. ALL necessary precautions will be taken to reduces the
environmental footprint of the venture.
Legal
• The venture will face compliance terms as a result of the laws of Antigua and Barbuda,
the Occupational Health and Safety (OHS), Employment Act, Labour Codes governing
the state, as well as regional and international standards.
Industry analysis and trends
When there are few competitors in the market, it is more likely to gain more profit. There are many
opportunities in the poultry Industry. Their first opportunity is that there are no farmers that do
broiler production and others are small scale business farmers with a different focus. This will
make businessmen vertically integrate into the poultry business. The venture will form part of the
poultry industry in Antigua and Barbuda. Currently, the main focus is placed on layers for egg
purposes, hatcheries that supply day-old chicks, and not broiler for meat purposes. This specific
industry that the venture focuses on will make a valuable contribution to the industry. The Antigua
and Barbuda Poultry Farmers Association currently represent egg producers and they are
responsible for coordination and contribution to the welfare of the industry (21Ju).
The industry has tremendous potential for capacity, expansion and implementation of a broiler
production farm. To reduce the importation bill of meat(chicken) by 25%, production must cover
250,000 pounds of chicken per year- (Edwards, 2021).
According to data from the Food and Agricultural Organization (FAO), their consumption of the
chicken is increasing steadily and it is anticipated to grow in the future.
The issues that influence the productivity of the industry include the following:
• Trade relations in Antigua and Barbuda
• Food safety certification
• Prices of raw materials
• Importation which is causes great competition for the local players
• Urbanizations
• Poultry diseases (Avian Influenza, New Castle Disease)
Due to the increase in population and increased growth in double-income families, there is a lot
of potential for growth in the poultry industry in the long and short term. Essentially increasing the
demand for meat (chicken) is likely to drive growth in the industry. The increased growth potential
is substantiated by the increased consumption per capita. The main players in the industry include
wholesalers, retailers, drug and food suppliers, emerging small scale farmers, agents and
distributors (Hall, 2021).

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The venture will focus on success factors in the Poultry industry to encompass the following:
• Focusing on niche markets rather than targeting the mass market
• Quality and Quantity- The nature of the business is high volume, with a 34% margin.
Approximately 60-65% is cost related to broilers. It is necessary to sell large quantities to
make a pragmatic return. Quality in terms of taste, health benefits (no hormones) is a
success factor that consumers pay keen attention.
• Employment of technology in raw material processing, production, marketing,
procurement and packaging
• Convenience- Ensuring that the products are near its customers. Consumers normally
purchase from close suppliers to reduce transportation cost.
• Price- The industry has other players and customers will opt for the lowest possible price.
• Responsiveness to disease outbreaks- One outbreak can eliminate all birds that are used
for meat production. It is very important to monitor the bird carefully and apply the
necessary prevention and control measures.
Poultry farming has some challenges that need vigorous attention. Below is a list of common
challenges:
• Mortality rate: In poultry farming, some chicken may die because of their fragile nature
and weather conditions. Some factors such as heat and overcrowding causing death can
be controllable
• Diseases- Avian Influenza and other diseases are common problems in the industry. This
problem is solved by administering veterinary services (Johnson, 2018).
Competition analysis
Competition is alive and well in the poultry industry in Antigua and Barbuda. Whereas there are
no competitors in Antigua and Barbuda relating to the production of meat (chicken), there are
currently three major supermarkets and wholesalers that import chicken. CFF will compete with
these major supermarkets and wholesale distributors. These competitors have been dominating
the industry for over 20 years. CFF will have to win the hearts of the consumers through marketing
and our value proposition of the company. Offering the lowest price in the market, selling at 2.70
per lb.
Competition (major competitors); evaluation of competitive advantage. Competitive
advantages estimation given in 5- point system. Competitive product/service:
Competitive
advantage
Competitors Our
Company
Co 1 Co 2 Co 3 Co 4 Co 5
Quality 3 1 3 5
Price 2 1 3 5
Customer
service
2 3 2 4
Sales methods 4 2 4 5

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Sales support 3 3 3 5
Location 5 5 5 4
etc.
Co1- Epicurean Fine Foods, Co2- Perry Bay Supermarket, Co3- First Choice Supermarket
ORGANISATION AND MANAGEMENT
Company’s management
Name Position Area of responsibility Monthly wages
Carmen E Roman CEO Overall Direction 2,000.00
Anne-Jolie Roman Operations Manager Accounting/Administr
ation/Marketing
1950.00
Chief Executive Officer- CEO:
• Increases management’s effectiveness by recruiting, selecting, orienting, training,
coaching, counselling; communicating values, strategies, and objectives; assigning
accountabilities; planning, monitoring, and appraising job results; developing incentives;
developing a climate for offering information and opinions.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
Operations Manager:
• Ensures that farming goals desired result are achieved, the most efficient resources
(manpower, equipment, tools and chemicals et al) are utilized and different interests
involved are satisfied.
• Ensures compliance during venture executions
• Provides advice on the management of farming activities across all section

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Management structure
Chief Executive Officer-
CEO
Operations Manager
Farmer
1
Farmer
2
Farmer
3
Farmer
4
Motivation and development plan
Human resource plays an essential role in creating a culture in organizations where, training,
development and motivation are core instruments in employee development. CFF realises that
the future of the organizations lies in the hands of the overall operations of the company, but more
so the employees' productivity.
Partnership with the Ministry of Agriculture and the Antigua and Barbuda Poultry Association will
bring benefits in terms of training about poultry diseases, health and safety, slaughtering, dressing
etc.
Employees will be encouraged to upgrade their skills from time to time to become an
indispensable resource to the company. CFF will work with each employee to create their
development plan, provide each employee with mentoring and help their increase the skills and
competence.
CFF will keep its employees abreast with the organization mission, vision and objectives and
strategy. Moreover, employees that perform exceptionally well throughout of the year, place their
names on notice boards and office journal. Awards will include gift baskets, bonuses and other
remuneration means. Motivating employees to thrive to self-development and coordinate as a
team, this can be very fulfilling both for the company and employees.
Total employment and management costs
Position # of Employees Salary per month Annual Salary
Chief Executive Officer 1 2000.00 24000.00
Operations Manager 1 1950.00 23,400
Farmers 4 1250.00 60000.00
Total 6 129600.00

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STRATEGY
Companies process map
Receipt of Day
Old Chicks
Transfer to fowl
house
Inspection
Dressing
Chill (Deep
Freezer)
Inspection on
day-old chicks
Feeding/Nurture-
6 Weeks Slaughtering
Package
and Label Distribution
INTERNAL ANALISYS
SWOT analysis
Strengths Weaknesses
-Produce chicken of high quality and
continuous supply to customers
-The land is readily available
-The venture has taken cognisance of social
inclusion in terms of gender, social status
-Low-cost labour venture
-No competitor in the market
-The feed is available from a local buyer
-Only broiler producer in the market
-Broilers will be produced hormone free
-Water is not readily available on site
-The high cost of capital
-Lack of adequate laboratory testing in
aviculture
Opportunities Threats
-Create employment for many producers
-Increase the market share through an
advertisement that in turn increase profits
-Room for expansion to include, layers,
production.
-Equity financing available
-Expansion to cut-up market
-An outbreak of diseases (Avian Influenza)
-Fear of larceny and predators
-Increase in International feed ingredient
prices

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Risk management
Below are a list of key issues and risk likely to face CRoman Feather Farm. Possible mitigation
efforts and include:
Market Risk
The potential risk stems from competition from supermarkets such as Epicurean Fine Foods,
Bargain Centre and First Choice Supermarket. CFF will have to compete for the market share
with this established business. To mitigate this, CFF will focus on a specific market segment and
strive to understand the customers better than the competitors. To combat our competitors, CFF
will have a constant supply of meat product, therefore will encourage the government to impose
importation limits which force these competitors to purchase from CFF.
Human Resource Risk
The venture requires knowledgeable, competent and skilled staff in areas of management
(financial, cost, and business), entrepreneurship and other aspects relating to raising broilers. All
members of the staff need to be trained. The loss of key personnel is likely to affect the business.
To mitigate this risk, CFF will promote and cultivate a culture of knowledge sharing among all
employees and members. The business will work in cooperation with agencies such as a Ministry
of Agriculture and IICA for business training sessions.
Economics Risk
There has been an increase in unemployment which means a reduction in buyer power and
although some consumers are from doubled income families, other consumers have tight
budgets. The economic risk may emanate from high water and electrical charges should Antigua
Public Utilities Authority (APUA) continue with its schedule increase in utilities. This may ultimately
outlook high inflation that renders expenditure and other costs to be expensive. These risks are
external and out of the control of CFF. There is a possibility of implementing energy-saving
measures such as energy-saving bulbs and other alternative sources of energy such as solar
power. CFF strives not to pass the cost to consumers as affordability is a key success factor.
Risk of disease outbreaks and events
There is a risk of an outbreak of diseases such as the new castle and avian influenza which can
be extremely detrimental to the venture. The risk of disease is high due to the way the birds are
kept. If the proper vaccination programme is administered and followed, CFF will avoid financial
loss. The vaccination of chickens minimizes the threat of diseases. Production staff will ensure
that birds are monitored for diseases and that chicken housing and kept clean and secure from
such risk.
Antigua and Barbuda is prone to natural disasters such as tropical storms and hurricanes from
June to September. These disasters are beyond the control of CFF, however, CFF will ensure
birds are protected by ensuring the safety of infrastructure.

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LAUNCHING THE VENTURE
Activities per
months, founding
year
1 2 3 4 5 6 7 8 9 10 11 12 Total
costs
Business plan writing
Company registration
Facilities
repair/customization
Acquiring the
necessary facilities for
process
Personnel Selection
Promotional materials
preparation
Advertising Campaign
Other operating
expenses
Cost reserve (15%)
Sales estimation
Produc
t/
service
Unit Unit
sales
price
Sales prognosis (in
units)
Sales revenue prognosis (USD)
Y1 Y2 Y3
Chicken Lbs 2.70 154000 15400
0
15400
0 415,800.
00