Phase 1

Construct an initial coop capable of housing a flock of 500 to 600 birds. The goal of this phase is to experiment. The experiments are meant to assess the production ability of the village, test the channels to market, and verify the market prices. This phase also includes the cost of training and refining operations. The cash flow model and development goals will be re-evaluated based on the output of this experiment.

Additionally, the first phase will develop local leaders, managers, or entrepreneurs; these individuals will be instrumental in taking the Egg Module to the next phase. At the end of Phase 1, approximately 1 year from the arrival of the day-old chicks, the assumptions in the initial business plan will be tested against the results from Phase 1. This assessment will determine the strategy for expanding operations.

Estimated cost for Phase 1 = $5,000 to $10,000

Phase 2

The goal of this phase is to expand the scale of operation by the construction of additional coops and further enhancements. The rate and scale of this expansion depends on the results from Phase 1. As these questions are answered, the plan can be adjusted and modified as the operation is expanded.

Greater production capacity can be achieved by constructing multiple coops, which will enable the economies of scale to drive down production costs. Redundant coops will also allow the villages to more reliably serve its customers, especially as older flocks are replaced—or in case a flock dies due to disease outbreak. To manage the risks of disease, it is advised to have the individual coops spaced at least 1 km apart. Phase 2 allows the villages to scale up poultry production by building multiple coops and to focus on this as a major economic activity.

This phase could, in part, be financed by cash flows from the first coop, or perhaps the manager could take a loan.

Estimated cost for Phase 2 = $2,000 to $6,000

Phase 3

Phase three focuses on incremental improvements in laying performance. This can be achieved through additional investments in barn equipment, specifically by adding automated lights and feeders. Strict lighting and feeding programs can greatly increase laying performance. Additional investment can be made in effective ventilation, which helps to reduce bird stress.

The cost of Phase 3 is highly variable and is to be implemented as a continuous improvement campaign.