Monday, October 25, 2010

Commercial Emu Farming

In our previous post, we have seen contract emu farming is picking up in TN. Here're more details about it, from Jeevan Emu Care, Dindigul.

Commercial INTEGRATION farming of emu
PLAN - A (Commercial Integration Farming of Emu) 
  1. All Emu chicks supplied by the company are of export quality. 
  2. The security deposit for the chicks worth Rs.3 lakhs is just Rs.2 lakhs only. 
  3. The company will deliver 20 Quality emu chicks for this. 
  4. Feeds &  Medicines for Emu chicks will be delivered to Farm directly by company. 
  5. The agreement period is 5 years. 
  6. During 5 years, 20 Emu chicks will be supplied once in 12 months. 
  7. Company supervisors will inspect the farm once in a week and inspections reports will be maintained by the company. 
  8. 12 months is treated as one Integration period. 
  9. The company will pay Rs.4,000/- for each chicks in every Integration period(Totally Rs80000/- for 20 chicks). 
  10. Company will bear the Insurance premium amount also. 
  11. The total market worth of Emu 20 birds is Rs.3,00,000/- 
  12. The company agrees to pay Rs.10000/- as bonus per batch as per the calculation of FCR per year. 
  13. At the end of 5th year, the company will pay the brought up amount (Rs.4,000/-per bird) along with the invested amount. 
  14. All the conditions apply.
Income (Per 20 Birds) 
First Year : Rs 90,000/-* Total Income : Rs 6,50,000/-
Second Year : Rs 90,000/-* Investment : Rs 2,00,000/-
Third Year : Rs 90,000/-*
Forth Year : Rs 90,000/-* Net Profit : Rs 4,50,000/-*
Final Year : Rs 2,90,000/-* (Just in 5 Years)
*Conditions apply
(Thanks to Jeevan Emu Care India Pvt Ltd)
 If you look at the price, they are selling (or getting deposits) @ Rs.20,000/- for each 3-month chick. If you look at their PLAN B, they are buying 3-months old emu chicks @ Rs.3,000/- from you, and too, this is before their Marketing charges kicking in, I assume.This explains how they offer "free feed and Medicines, and periodical visits". It's all included in that. The expenses for running the office covered by this, legitimately.

Guess what ?  You have steady cash-flow, and banks have to beg you to take loan from them, because you are cash-rich. Also, your deposits are refundable at the end of fifth year and NOT taxable at the hand of Income-Tax and again interest-free in the eyes of Taxmen.

Monday, October 18, 2010

Contract Emu Farming is picking up in Tamil Nadu

Contract Emu Farming is one of the 3 method of emu farming, which we have discussed earlier in one of the blogpost.

Contract Emu Farming works in a different way than MLM. It's not MLM at all.  Let's look into how does it work.

In brief, Contract Emu Farming is of 10-pair size or in multiples of 10-pairs, i.e., 10 pairs, 20 pairs, 30 pairs, etc. In this method, farmer is depositing a refundable interest-free deposit for the cost of 10-pairs with the Emu Company.   In turn, the emu company sets up a mesh-wire fencing and a small shed, provides feeds and medicines at no cost to the farmer. Besides all, they are giving Rs.250-300/- per month per emu chick as incentive for safekeeping the emu birds. So, roughly for 10-pairs they are getting Rs.5,000 to Rs.6,000 per month as incentive, just to feed and water the emu chicks in the farmer's premises. The chicks are insured by the company and any mortality is company's responsibility and they will replace with a new chick to maintain the numbers. The ongoing market (or security deposit) is Rs.15,000/- per 3-month old emu chick pair. For a 1.5 lakh rupees interest-free refundable deposit, they are getting Rs.72,000/- per year. This is interesting, right. Where on the earth you will get this interest? But, You need to be in contract for a minimum period of 5-years, i.e., you will get the regular monthly income of Rs.5,000/- for next five years, and cannot break the bond. This is the view of this contract emu farming business from farmer's point of view.

When I realised that how does it work on emu company's side, it is awesome business proposal for both sides. Fantastic. Legally right, it is not affecting any party involved both financially and in performance. A real win-win situation (so far).

Currently, there are several companies started this contract emu farming. In Tamil Nadu, VC emufarms, Susi Emufarm, Jeevan Emu Care, are some of the companies doing this now. Next year, many will join the queue. This shows, there is a revival of emu business in Tamil Nadu.