North West Egg Sales Business Plan — Business Model and Unit Economics
How the farm earns per dozen, and the cost stack between feed, labour and packing.
Section 12 of 31
Business Model and Unit Economics
Jump to section
- 0. Executive Summary
- 1. Investment Thesis
- 2. Company Overview
- 3. Location
- 4. Problem and Value Proposition
- 5. Products and Pricing
- 6. Industry Analysis
- 7. Market Sizing
- 8. Customers and Channels
- 9. Competitive Landscape
- 10. Competitive Positioning
- 11. Business Model and Unit Economics
- 12. Go-to-Market Strategy
- 13. Operating Model
- 14. Farm Infrastructure and Capital Expenditure
- 15. Biosecurity and Animal Health
- 16. Management and Organisation
- 17. Strategic Plan
- 18. SWOT Analysis
- 19. Risk Analysis
- 20. ESG and Sustainability
- 21. Implementation Roadmap
- 22. Financial Plan: Key Assumptions
- 23. Financial Plan: Revenue Build
- 24. Financial Plan: Projected Income Statement
- 25. Financial Plan: Projected Cash Flow
- 26. Financial Plan: Projected Balance Sheet
- 27. Funding Requirement and Structure
- 28. Debt Serviceability and Break-Even
- 29. Returns, Scenarios and Sensitivity
- 30. Investment Case and Next Steps
Each dozen earns about R29 and costs about R23 to produce and deliver; feed and the hen herself are two-thirds of cost
Capital
R52.9m
Houses
and flock
1.45m dozen
eggs
~190 accounts
+ farm gate
Revenue
R42.5m
EBITDA
R9.3m
Free cash
flow
Dividends
+ exit
Year 3 unit economics (R per dozen produced)
| Category | base | Income / EBITDA | Cost | |||
|---|---|---|---|---|---|---|
| Egg price | 0.0 | 27.29 | 0.0 | |||
| Culls, manure | 27.29 | 2.15 | 0.0 | |||
| Feed | 18.04 | 0.0 | 11.4 | |||
| Flock depletion | 13.98 | 0.0 | 4.06 | |||
| Packaging, vet | 12.35 | 0.0 | 1.63 | |||
| Labour | 8.95 | 0.0 | 3.41 | |||
| Energy, delivery, overheads | 6.42 | 0.0 | 2.53 | |||
| EBITDA | 0.0 | 6.42 | 0.0 | R per dozen, Year 3 | ||
| Realised egg price | 27.29 | |||||
| Cull hens and manure | 2.15 | |||||
| Feed | (11.40) | |||||
| Flock depletion (pullet cost) | (4.06) | |||||
| Packaging and veterinary | (1.63) | |||||
| Labour | (3.41) | |||||
| Energy, delivery, overheads | (2.53) | |||||
| EBITDA | 6.42 | |||||
| Depreciation and interest | (4.20) | |||||
| Pre-tax profit | 2.22 |
Flock depletion spreads each R104 pullet over her 14-month cycle; the cull-hen sale is shown separately as income.