In Summary

Putting your capital in a chicken hatchery can be a good investment. Dorothy Nakaweesi shows how the returns on investment are good in a hatchery business.

Poultry farming is increasingly becoming lucrative in Uganda, due to growing demand for chicks throughout the year. Market demand
Since there is ready market for chicks both in rural and urban areas throughout the year, setting up a chicken hatchery is profitable. Market for the one day chicks from good breeders can be produced anywhere in the country to reduce transportation and sold within the country and neighbouring countries.

Mr John Musajjakawa, Uganda Investment Authority senior investment officer, says: “This kind of business is premised on hatching eggs for layers and broilers for both local and hybrid birds.”
The revenue potential is estimated at $45,805 (Shs160 million) per month, which translates into $549,657 (Shs1.9 billion) per year. The business has a good market demand throughout the year and can provide employment to youth and women.

Mr Musajjakawa shows that this kind of project needs an initial total cost of $19,500 (Shs68.2 million). The business will be hatching about 38,000 chicks per month, translating into 456,000 birds per year.

He adds that the net profit margin will be 88 per cent with a payback period of three years and five months.

Process
To start, one need to select good eggs collected and inserted into an incubator for 18 days. They are then transferred into a Hatchery for three days to hatch. Production assumed 21 days in a month with a capacity of 38,000 eggs per press.

Suppliers
Some of the equipment can be purchased from the local market while the rest is imported from Europe, India, South Africa and China.