Feasibility Analysis of Meat processing plant –Case of medium scale plant for Restructured chicken products

This paper analyzes the economic feasibility of meat processing plant producing restructured chicken bites with a capacity of 150kg/day. The primary data on input use and output yield were taken from studies of NRCM and data was analysed using investment appraisal techniques like NPV, IRR(%),BC ratio, and Break even analysis and Sensitivity analysis. The results indicated that the processing unit is economically feasible with NPV of Rs. 44.74 lakhs and IRR of 31% and a B-C ratio of 1.78. The project will pay back its investment in less than 3years (2.72). Annual undiscounted cashflows and discounted cashflows were estimated as Rs. 21.03 lakhs and 5.59 lakhs respectively. Break Even Point of output is estimated as 41.15% of Installed Capacity. Sensitivity analysis showed that variable cost and selling price had major impact on profitability compared to other variables like capacity and fixed cost.