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.

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