New Business Idea Starting DOG BREEDING (GERMAN SHEPHERDS) Company Production and Marketing with Costs in USD

 Introduction

Dog breeding is the practice of mating selected specimens with the intent to maintain or produce specific qualities and characteristics.  The German shepherd, from Germany, was originally bred for herding and guarding sheep. Its origins date back to the 700’s. The German shepherd Dog is also known by the other names of Alsatian and Deutscher Schaferhund. The advent of the two World Wars influenced the history of this dog.

This breed (formerly known as the Alsatian) originally worked as a shepherd dog and a protector of sheep. Highly adaptable and trainable, the German Shepherd Dog has proved valuable as a guard dog, guide dog, and tracker, and is widely used by police and armed forces all over the world. Despite occasional bad publicity for aggressive behavior.

Photo by Katelyn MacMillan on Unsplash

German Shepherd Dogs produced by reputable breeders usually have a steady temperament. When trained by a responsible owner and allowed to enjoy an active outdoor lifestyle, this dog can become a trusted and faithful member of the family. Coats range from short-haired to long-haired.

Production Capacity

This farm will be capable of producing 50 dogs in a period of six months.

Capital Investment Requirements and Equipment

This Farm will be operated locally on small scale, i.e. 50 shepherd Dogs kept on 2 acres of land. The Fixed Capital investment required to start this project is US$ 43,048, the revenue potential is estimated at US$ 218,400 with a net profit margin of 28%. The payback period of this project is 2 years.

Market Analysis

There is a high demand for German shepherd Dogs especially in schools, households, farms, and industries among others. However, they may also be exported.

Project Costs

The projected costs of production are summarized in the Tables below:

Capital Investment Requirements in US$

Capital Investment Item	Units	Qty	@$	Amount $
Land	Acres	2	10,000	20,000
German Puppies	No.	50	150	7,500
Field Van	No.	1	5,000	5,000
Tip Dishes	No.	25	50	1,250
Gas Cooker	No.	1	500	500
Puppy Pans	No.	25	15	375
Kennels	No.	10	500	5,000
Spraying Pump	No.	5	30	150
Injectors	No.	5	6	30
Spades & Pangas	No.	4	4	16
Weighing Scale	No.	2	100	200
Water Basins	No.	25	5	125
Harmers	No.	2	3	6
Wheel Barrows	No.	4	30	120
Hand Hoe & Rake	No.	2	3	6
Thermometers	No.	2	10	20
Water Tanks	No.	2	100	200
Dogs Beds	No.	100	25	2,500
Feeding Troughs	No.	5	10	50
Total Amount	43,048

Operating Costs

Item	Units	@	Qty/ day	Prod. Cost/day	Prod. Cost/month	Prod. Cost/Year
Direct Costs
Dog Food	Kgs	0.8	50	40	1,040	12,480
Drugs & Medicine	M/gs/ Litres	20	5	100	2,600	31,200
Water	Litres	0.0013	50	0.065	1.69	20
Sub total	140.065	3,642	43,700

General Costs (Over heads)

Labour	300	3,600
Repair & Maintenance	200	2,400
Gas	200	2,400
Ropes	10	120
Fuel	400	4,800
Depreciation Expenses	480	5,762
Sub – total	1,590	19,082
Total Operating Costs	5,232	62,782

Project Product Costs & Price Structure

Item	Qty/three months	Qty/yr	@$	Pdn Cost/yr$	UPx	T/rev
Puppies	50	15,600	4.02	62,782	14	218,400

Profitability Analysis

Profitability Item	Per day	Per Month	Per Year
Revenue	700	18,200	218,400
Less: Production & Operating Costs	201.2	5,231	62,782
Profit	498.8	12,969	155,630
Profit	220	5,017	60,730

Production is assumed for 312 days per year.
Depreciation assumes a 25% write-off for all assets.
A production Month is assumed to have 26 days.

Some dog breeds have a pups breeding cycle much more frequently than the average; these include the rottweiler and German shepherd dog

POPULARITY: Most popular

FAMILY: Livestock, Herding

AREA OF ORIGIN: Germany

DATE OF ORIGIN: 1800s

ORIGINAL FUNCTION: Sheep herder, guardian, police dog

TODAY’S FUNCTION: Police, contraband detection, assistance, herding trials, Schutzhund

OTHER NAME: Alsatian, Deutscher Schaferhund

10 IMPORTANT QUESTIONS CUSTOMERS ASK A BREEDER

• Will the puppy has received his first vaccinations and been

wormed before I collect him?

• Are your dogs screened for inherited diseases, and may I take

a look at the screening certificates?

• Can you provide a written guarantee of the puppy’s health?

• Will you provide a written contract of sale and does it specify

what I should do if I can no longer care for my puppy?

• Can you provide references from, for example, a vet or

previous customers?

• Have you registered the puppy with a kennel club?

• Can you provide a printed pedigree for the puppy?

• What do you consider the most important characteristics

of this breed?

• How long have you been working with this breed?

• Have your puppies been well socialized in your home as well

as in the outside environment?