Creation of a full-cycle rabbit breeding complex in Chaplyginsky district, Lipetsk Region

Rabbit breeding is a rather profitable activity, however, in addition to high yield, one need to keep in mind the vulnerability of rabbits to infectious diseases with a high rate of mortality, as well as presence and prospects of a sales market within the framework of business plan development. 

Three obligatory factors for project implementation

• need in expenditure on vaccination and animal management, otherwise any epidemic can kill all animals;
• estimation of the current and prospective market state with a clear definition of certain sales directions;
• use of modern equipment and animal management systems, careful selection of rabbits with account for management conditions.

For large-scale productions started from ground the costs at the initial stage, as a rule, are rather significant, however, thanks to modern equipment, wider selection opportunities and simple sales market organization, it is these enterprises that show the highest profitability with a rather short pay-back period.

Task setting

Such projects have often become the subject of analytical research and business plan developments by specialists of Intesco Research Group. One of the recent ones was the project for creation of a full-cycle rabbit breeding complex in Lipetsk Region.

The planned location of the complex was Chaplyginsky district of Lipetsk Region. The task of Intesco Research Group was justifying project cost effectiveness.

The framework of initial stage of project implementation included construction and equipping of seven mini-farms, a breeding farm, a feed plant, a slaughter house and a vitamin meal aggregate unit.

Future production volumes

With the complex running at its project capacity, the production volume by main kinds of products per quarter was to be the following:

• 384.1 tons – carcass;
• 107 tons – viscera;
• 35.7 tons – heads;
• 32.7 tons – liver;
• 28.2 thousand liters – blood;
• 11.1 tons – ears;
• 9.7 tons – necks;
• 8.2 tons – paws;
• 275.2 thousand units – skin;
• kidney, lungs, heart, tongue – 11.9 tons.

Investment structure

According to calculations, development and implementation of the project requires attracting investment of 1.215 billion rubles.

The project effectiveness estimates were the following:

• net income/net present value – 3,826.507 million rubles/1,420.225 million rubles;
• simple/discounted pay-back period – 5.35/6.43 years;
• profitability index – 2.31 units;
• internal rate of return – 28.5%;
• breakeven point 18% or 25.314 million rubles per quarter.

Project competitive advantages

Specialists of Intesco Research Group pointed out the following competitive advantages of the project and its investment attractiveness:

• use of highly effective European technologies in rabbit breeding;
• use of experience and resources of research organizations of rabbit breeding institutes, as well as advanced practices and technologies of countries leading in this field;
• organization of the company’s own trade service, the activities of which would encompass the local and external markets, as well as of the company’s own sales network consisting of brand sales outlets, public catering establishments and supermarkets;
• planning of export supplies of products at competitive prices;
• organization of sales of by-products of rabbit breeding (packaged fertilizers).

You can order development of a business plan for your project by calling at +7 (495) 212-91-91 or filling in a request at the website, after which our manager will call you.

Order business plan development