Feasibility study & Business plan of

Japanese quail in Rupandehi District, Nepal

Submitted by

Lalit bc

Institute of agriculture and animal science

Paklihawa, Campus
 1. Table of contents
2. Executive summary
3. Background
4. Objectives
4.1 Broad objectives
4.2 Specific objectives
5. Market
6. Marketing strategies
7. Project aspects
i. Technical aspects
ii. Economic aspects
iii. Marketing aspects
iv. Environmental aspects
v. Managerial aspects
8. SWOT analysis
9. Methodology
9.1 Discounted method
1. Benefit cost ratio
9.2 Non-discounted measure
1. Simple rate of return
10. Financial plan
10.1 Establishment cost
10.2 Table of the fixed cost
10.3 Table of income
10.4 Calculation of B/C ratio
10.4.1 Calculation of Simple rate of return
11. Conclusion
12. References

2. Executive summery
The following business plan and the feasibility study is for the whole production scenario of Japanese quail
(Coturnix japonica japonica) at the “D&L Poultry farm” Rupandehi Bhairahawa. This study includes all the
production and cost related factors while rearing to marketing of Japanese quail. At this stage of global
populations increase and the demand of protein is increasing quail can be a good source of protein and is very
easy to rear and takes short time to be ready. Increasing demand of quail meat and eggs is one of the major
reasons to start this farm. This study will help those people who are planning to run quail business around
Rupandehi or anywhere in the Nepal. The primary target of this farm will be the local people of Butwal and
Bhairahawa and the market will be expanded to outside. The area of this entire farm will be 10 ropani.

3. Background
Nepal is a predominantly agricultural country where agriculture solely contributes about the 26.24% GDP(2017
census) where livestock shares about the 34% of total agricultural GDP. According to the census data of 2068 is
61% of total population of country is engaged in the farming. The average land holdings of Nepalese people is
2.68ha which is fluctuates according to the geographical locations of Nepal. The average landholding of a
family in terai is 1.8ha. The farming system of terai is characterized by semi-commercial to commercial but the
fertile land of terai is prone to the land fragmentation and urbanizations now days.

Rupandehi district is the part of Lumbini zones and situated in province no. 5 among the seven province of
Nepal. The area of Rupandehi district is …..sq. km and the headquarter is Butwal. This district is heavily
populated and equipped with all the physical facilities like transportation and electricity etc. Headquarter is
great market hub for its niebhouring districts. Peoples are mostly engaged in farming at rural areas and
constructions and urbanization is rapid. Live style of people is very standard in city area whereas poor in the
rural areas. District is connected with the India that helps in the trade and commerce.

Quail farming is of great benefit due to its increasing demand and its health benefit it has. China is the largest
producer of quail meat and eggs in the world. Quail farming is new to Nepal and only few commercial farms
and hatcheries have been established yet. Farmers are increasing their interest in the quail farming due to its
high market price and low cost of production. Quail meat is white meat and rich in vitamins like vitamin A,
vitamin B, vitamin C and vitamin k. Quail meat has low cholesterol and low fat content. Quail meat has high
protein, essential fatty acid and minerals like sodium, potassium and minerals. Both meat and eggs are
beneficial for health and consumed as medicinal purpose. This is the main reasons for the commercialization of
quail farm at Rupandehi district.

4. Objectives
12.1 Broad objectives:
 To prepare the financial framework of commercial Japanese quail farming in Nepal.

4.2 Specific objectives:

 To find the cost of production and identify methods to reduce it.

 To calculate the profitability of quail farming in Rupandehi.
 To study the market accessibility of quail meat and eggs.
5. Market
The market for the meat and eggs of Japanese quail is increasing in trend. It gains its popularity in recent times
due to its taste and the health benefits it has. Despite of its high demand in urban area production is not
sufficient and year round. Market demand of quail is high and we need to increase it a bit for the better
performance in market. There is large existing market in cities like Kathmandu, Pokhara, Chitwan and Butwal
for the quail.

6. Marketing strategies
We have good market access and demand for the quail has already been created, some of our strategies for the
marketing of our product are as follows:

 Direct contact with the nearby restaurants and hotels who for the wholesale meat and egg supply.
 Home delivery facilities for the bulk order of our products.
 Exhibits in Agri-fair and promote our products.
 Self processing of meat into sausage and Kima.
 Publicize our product with its health benefits.

7. Project aspect
i. Technical aspect: Our farm is on technically sound. The facility of road and electricity is
easily available and is situated nearby market which helps us for the easy supply of inputs
required with the time. Feed industries and suppliers are near the farm and have the good source
of water supply.
ii. Economic aspect: To establish a quail farm is not easy process and require huge money.
We are making coordination with the land, agriculture and cooperative ministry for the economic
help for our project.
iii. Marketing aspect: Marketing is not a big challenge for us because our farm is nearby
Butwal area and a lot of new restaurants and small hotels are opening which will sells specially
the quail meats. Quails are imported from Indian side near boarder side and we will replace that
with our products. Big stars hotels need quail in bulk quantity due to its small size.
iv. Environmental aspect: We have a very good environment for our farm because of high
demand and low supply of product in market. There are no any commercial quail farms around
this area so we have the benefit of monopoly market.
v. Managerial aspect: The management of farm will be done by Lalit bc and the Bhargab
Dhital( prof. IAAS). We will have the benefit of agriculture volunteers because of the agriculture
campus located nearby our farm. Some of the labor will be hiring the permanent as well as
temporary basis for the construction of shed and the fencing as well as to take care of farms in
permanent basis.
8. SWOT analysis
 Strength: The strength of our project is developing market for the quail products and the
financial help ministry of agriculture is granting for the start up. We’ve also the advantage of
technical help from the veterinarian volunteers who are willing to help & learn from Agriculture
campus.
 Weakness: Lack of proper research on the management of quail and lack of specific feed
produced by industry for the quail birds.
 Opportunities: Increasing the demand and awareness of quail consumption and creating
huge market and opening restaurant that sell quail product specially.
  Threats: Occurrence of some epidemic disease and problems of temperature both in
summer and winter seasons due to here’s extreme climatic conditions.

9. Methodology:
There are 2 methods to calculate project appraisal. They are:

9.1 Discounted Method:

It measures present value of future money. It includes:

1. Benefit cost Ratio(BCR):

It is defined as the ratio of discounted benefit to discounted cost.
BCR = It is calculated by dividing Discounted value of incremental benefits with Discounted value of
incremental costs.
Accept all projects with a BCR greater than 1, when costs and benefits are discounted at the opportunity
cost of capital.
If a project has a BCR that is greater than 1, it indicates that the NPV of the project benefits outweigh
the NPV of the costs. Therefore, the project should be considered if the value is significantly greater
than 1. If the BCR is equal to 1, the ratio indicates that the NPV of expected profits equal the costs. If a
project's BCR is less than 1, the project's costs outweigh the benefits and it should not be considered.

9.2 Non discounting method:

It measures future value of present money and it includes:

1. Simple Rate of Return:

The simple rate of return method is another capital budgeting technique that does not involve discounted
cash flows. The method is also known as the accounting rate of return, the unadjusted rate of return, and
the financial statement method. Unlike the other capital budgeting methods that we have discussed, the
simple rate of return method does not focus on cash flows. Rather, it focuses on accounting net operating
income. The approach is to estimate the revenue that will be generated by a proposed investment and then to
deduct from these revenues all of the projected expenses associated with the project.

Simple rate of return = Incremental net operating income) / Initial investmen

10.Financial plan
10.1 Establishment cost

 Breed of quail: Japanese quail

 Area of the farm: 1Kattha

In one kattha of land after constructing the shed we can keep about 7000 birds per lot.
10.2 Table no. 1 Fixed cost in establishment of Quail farm

First lot of quail will be grown for 60 days and they start laying eggs about 40 days and half the populations
are usually male and next half female.

S.N PARTICULARS UNITS QUANTITY PRICE(Rs) TOTAL

COST
1. Variable cost
i. Human labor men 5 for 5 days 800 20,000
ii. Construction cost 20,000
iii. Feeder & Drinker Units 150*2 80 24,000
iv. Chicks cost Units 7000 50 3,50,000
v. Feed Kgs 4,719 60 2,83,186
vi. Electricity Unit 5,000
vii. Brooder 15,000
viii. Rice husk Bora 200 10 2,000
ix. Management cost 10,000
x. Other equipment 5,000
Total Rs.7, 34,
establishment 186
cost
2. Fixed cost
i. Tax 1000
ii. Permanent labor Man 1 10,000 per 10, 000
salary month
Total cost Rs, 7, 45,186

10.3 Table no. 2 Calculation of Income

S.N. Particulars Units Quantity Price(Rs.) Total

Income
1. Meat Production birds 6,300 150 9,45,000
2. Egg production units 2500/day 5 12,500/day
3. Litter production Bora 2000 50 1,00,00
4. Total income Rs.
12,95,000
 Quail starts laying eggs since it reaches of 5-6 weeks and lay eggs until 8-9 months. In a batch 40:60 male
to female ratio is found generally. Here we’ve assumed that only 40% of total populations are productive female
it might be more than that.

10.4 Calculations of B/C ratio:

S.N. Months 1 2
1. Total income 0 12,95,000
2. Total cost 5, 96, 093 1, 49, 093
3. B/C ratio 0 8.86

𝑩𝒕
∑𝟏𝟎
𝒕=𝟎(𝟏+𝒓)𝒕
B/C ratio = 𝑪𝒕
∑𝟏𝟎
𝒕=𝟎(𝟏+𝒓)𝒕

B/C= 12, 95, 000/1, 49, 093

= 8.86
Hence, B/C ratio is found to be greater than 1 (i.e., 8.86). So, this project is found to be feasible.

10.4.1 Simple rate of return

SRR = (Y-D)/I
Where,
Y = Net income
D= Depreciation
I = Initial investment
SRR = (12, 95, 000-0)/ 7, 45, 186
= 1.73

11. Conclusion
Since we found that the B/C ratio for 2nd month is greater than 1 and the simple rate of return is found greater
than 1 it says that the project of quail farming is quite beneficial and feasible in context of Rupandehi district.
Over all we have well established market for meat and eggs of quail. We’ve strong strength and opportunities
over the threat and weakness hence we can say that quail is the profitable business in this district.
 12. References
B.Panda and R.P. singh (2019). Development in processing quail meat and eggs; world’s poultry science journal, vol
46, 219-234.

CBS.2017.Nepal population report 2016. Ministry of Population. Central Bureau of statistics, Kathmandu, Nepal