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 V3. Swiftlet Keeping Discussion, Home of Fuciphagus Domesticus

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kohloh
post Sep 8 2011, 06:36 PM

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THE MALAYSIA HERO,,,,,,,,,,

http://www.youtube.com/watch?v=THqWbEt6auA


MANY HERE R HIS FOLLOWS,,,,,,
northface
post Sep 8 2011, 08:48 PM

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QUOTE(rakyat @ Sep 8 2011, 02:25 PM)
Dear Walet Sifus,

Would appreciate it if I can get some advises and pointers on the business as I have zero knowledge. Recently I came across an opportunity to invest in a BH in my hometown (Perak); this is a scheme btw 4 childhood friends where one of us has 5 acres of agricultural land which is left dormant while another friend has just ventured into Birdnest farming and actively looking for more opportunities.

Hence a business proposal is in the making where the landowner will be a 50% stakeholder while the other 3 will need to contribute RM50k each as capital. A 30 years lease will be signed and RM125k will be used to build a 2.5 storied BH with all necessary fittings. The person with experience will run supervise the overall business.

I would like to know if it is a feasible deal and what are the anticipated pitfalls? Is RM125k a reasonable price? Besides the superstructure, what other fitting should we expect to put into the BH? I know that we will need to have timber structure on the roof, PA system, love portion? ammonia and an automated humidifier; kindly advise on other preliminary fittings.

Assuming that the land price is RM40k per acre, how would other sifus structure the agreement in order to create a win-win situation (we are small towners grown up together hence do not want any party disadvantaged)

OTOH is it a good idea to install solar cells on the roof for the tarrif feed-in from TNB i.e. to sell back electricity to TNB? (the land has electricity line and TNB meter)?

Thank you very much and appreciate the feedbacks
*
Childhood friends or not, you always hear stories how good friends become enemies after business deal goes sour.
Few things that don't add up with your case,

1. 3x50k = 150k, and what will be done to the remaining 25k?
2. You're not gonna use all 5 acres of the land, in fact you're gonna use only 1 acre. Your friend can even possibly divide his land into lots and resell at a higher premium if the BH becomes successful, so he's not at a complete disadvantage.
3. What is a 2.5 storey BH? You mean like humans, birds also like 2.5 storey bungalows? biggrin.gif Just kidding but normally you're looking at $45-50 per square feet of construction price so you can do the calculations yourself.
4. The person that supervises this business, is he getting more? Because I would hate to do all the work myself but have to share the profits equally, friends or not.
5. KISS (Keep it simple stupid), for beginners you should just stick to the basics, visit some BH or attend some course and make your own observations, dont just digest 100% of what consultants that are after your money tell u.
5. Solar panel on the roof, you serious? You don't just install solar panels and 'connect' yourself to the TNB grid like the internet. rclxub.gif


This post has been edited by northface: Sep 8 2011, 08:52 PM
rakyat
post Sep 8 2011, 10:33 PM

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QUOTE(aeiou228 @ Sep 8 2011, 06:31 PM)
@Rayat

The failure rate for agri land BH is very high. Last time was around 70% to 80% and now is even more higher.

Therefore there is a 80% chance, 4 childhood friends start arguing when there is no income from the JV after few years. Things like below will happen:
*some of you might stop chipping in money.  
*no one bother to spend time working on the BH.
*the person doing the most work start accusing the person who didn't do anything to help.

The land owner is the most beneficial if the BH failed because he doesn't have to buy up the remaining shares in order to own the BH. Unless you guys register a Sdb Bhd and transfer the land ownership to the Sdn Bhd.
*
Good point; I'm also partial to the idea that the land be injected as part of the capital/company.


Added on September 8, 2011, 10:49 pm
QUOTE(northface @ Sep 8 2011, 08:48 PM)
Childhood friends or not, you always hear stories how good friends become enemies after business deal goes sour.
Few things that don't add up with your case,

1. 3x50k = 150k, and what will be done to the remaining 25k?
2. You're not gonna use all 5 acres of the land, in fact you're gonna use only 1 acre. Your friend can even possibly divide his land into lots and resell at a higher premium if the BH becomes successful, so he's not at a complete disadvantage.
3. What is a 2.5 storey BH? You mean like humans, birds also like 2.5 storey bungalows? biggrin.gif Just kidding but normally you're looking at $45-50 per square feet of construction price so you can do the calculations yourself.
4. The person that supervises this business, is he getting more? Because I would hate to do all the work myself but have to share the profits equally, friends or not.
5. KISS (Keep it simple stupid), for beginners you should just stick to the basics, visit some BH or attend some course and make your own observations, dont just digest 100% of what consultants that are after your money tell u.
5. Solar panel on the roof, you serious? You don't just install solar panels and 'connect' yourself to the TNB grid like the internet.  rclxub.gif
*
1. Remaining money will be used as working capital?
2. Need to get a written agreement on this
3. Meaning it is about RM50k to RM80k? What about the fittings like PA system, humidifier, chemicals?
4. I know what you mean hence we need to work out a remuneration scheme or distribute the job responsibilities
5. Would consulting forum experts count? tongue.gif Anyway 1 of the friend is supposingly experienced in this industry but I do not feel comfortable completely relying on what he says/do hence coming in here for some sound advise
6. Actually it is almost that simple except you need to sign some sort of contract and appoint 1 of their panel contractors for consultation/installation. What I'm worried is the effect on the birds

Thanks for all the constructive feedback. Will put more though into the matter.

This post has been edited by rakyat: Sep 8 2011, 10:49 PM
northface
post Sep 8 2011, 11:12 PM

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1. Basically not much working capital except for water/elec after commissioning your BH.
2. You could have your friend divide the land up and only use 1 acre for the BH. But of course this costs money.
3. I think you misunderstood. if your BH is 20x80 it will be 1600 sq.ft. Multiply by 3 storeys and you have 4800 sq.ft. And it will cost 240,000 to build one, your 125K valuation is a little too low. And this cost would normally include all the PA system, nesting planks etc.
4.
5. You can definitely get some very good advice here but I don't think this is enough, you need to visit some real BH before you proceed. A picture if worth more than a thousand 'forum posts'.
6. Right now PV is still not profitable unless you're subsidized by goverment. I did a rough calculation if your roof is 24x80 to fit with Kyocera PV cells it will weigh like 5,000 pounds, I don't think a normal BH's roof can withstand such load lol.
rakyat
post Sep 9 2011, 08:51 AM

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QUOTE(northface @ Sep 8 2011, 11:12 PM)
1. Basically not much working capital except for water/elec after commissioning your BH.
2. You could have your friend divide the land up and only use 1 acre for the BH. But of course this costs money.
3. I think you misunderstood. if your BH is 20x80 it will be 1600 sq.ft. Multiply by 3 storeys and you have 4800 sq.ft. And it will cost 240,000 to build one, your 125K valuation is a little too low. And this cost would normally include all the PA system, nesting planks etc.
4.
5. You can definitely get some very good advice here but I don't think this is enough, you need to visit some real BH before you proceed. A picture if worth more than a thousand 'forum posts'.
6. Right now PV is still not profitable unless you're subsidized by goverment. I did a rough calculation if your roof is 24x80 to fit with Kyocera PV cells it will weigh like 5,000 pounds, I don't think a normal BH's roof can withstand such load lol.
*
Thanks for the advise. Really helpfull as I did not think it would cost so much to construct a basic structure. Will need to do some site visitation as per advise b/4 taking the plunge. I though that the BH need monthly maintainence such as chemicals? Do you do harvesting yourself or do you hire labourer? That is a recurring cost right? BTW how do you keep your amp. cool as it is running 24 hour 7 days?


Bout feed-in tarriff, the government is subsidising - actually the common household exceeding a certain usage will be taxed 2% extra to subsidise the feed-in tarriff. Overall it is profitable in paper with a yield of 10% to 15% which is higher then your avg. investment vehicles (property, UT, stock or FD)
northface
post Sep 9 2011, 11:22 AM

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@rakyat, do you have a link/site to show that you can get 10%-15% return using feed in tariff in Malaysia? And that's including all your panel cost, land, overhead etc, I find this hard to believe.

Anyways, in the beginning you don't need to maintain your BH much, even harvesting will be a quick task until you have hundreds of nests. I normally spray some pesticide monthly in my BHs because all the droppings inside the BH will inevitable attract insects like roaches and mites/ticks.
TinkleBell
post Sep 9 2011, 12:42 PM

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Hi Sifus

Do you sifus think that swiftlet farming will work? Won't it be distorting the natural habitat of the birds. Where is his place please?

Did I listen him correctly that the birds will be released once they reached the independence stage. But this farm range swiftlets being human fed, will they know how to feed their babies?

See how all the farmed chicken, fish and etc bring problems to food with all those chemical, hormone, GMO feed fed to them. This will happen to farm swiftlet.

Very soon, this world will have nothing NATURAL left. Human is destroyong themselves. blink.gif rclxub.gif

QUOTE(kohloh @ Sep 8 2011, 06:36 PM)
THE MALAYSIA HERO,,,,,,,,,,

http://www.youtube.com/watch?v=THqWbEt6auA
MANY HERE R HIS FOLLOWS,,,,,,
*
rakyat
post Sep 9 2011, 01:58 PM

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QUOTE(northface @ Sep 9 2011, 11:22 AM)
@rakyat, do you have a link/site to show that you can get 10%-15% return using feed in tariff in Malaysia? And that's including all your panel cost, land, overhead etc, I find this hard to believe.

Anyways, in the beginning you don't need to maintain your BH much, even harvesting will be a quick task until you have hundreds of nests. I normally spray some pesticide monthly in my BHs because all the droppings inside the BH will inevitable attract insects like roaches and mites/ticks.
*
The 10 to 15% yield is on the cost of the solar panels only (quoted RM750 per month for RM60k investment, if financing involved then yield is less) and does not include land/ building cost. Pls. note that the building cost should not be included as it is used to generate other income and the roof would be idle (not generating income) anyhow. Anyway the link : http://www.mbipv.net.my/; I was contemplating bout installing onto 1 of my landed property but if sign 30 year lease (as per the initial business plan) then better use on the BH. Even at a yield of 10% it is very attractive to me

Pesticide as in ammonia? Am abit worried bout other pest such as ants, snakes and musang (since the land is in a jungle/ oil palm estate) What about the 'love portion' to attract mating birds?

How about keeping the amp. cool? Fan required?

This post has been edited by rakyat: Sep 9 2011, 02:03 PM
sfchung
post Sep 9 2011, 03:17 PM

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QUOTE(rakyat @ Sep 9 2011, 08:51 AM)
Thanks for the advise. Really helpfull as I did not think it would cost so much to construct a basic structure. Will need to do some site visitation as per advise b/4 taking the plunge. I though that the BH need monthly maintainence such as chemicals? Do you do harvesting yourself or do you hire labourer? That is a recurring cost right? BTW how do you keep your amp. cool as it is running 24 hour 7 days?
Bout feed-in tarriff, the government is subsidising - actually the common household exceeding a certain usage will be taxed 2% extra to subsidise the feed-in tarriff. Overall it is profitable in paper with a yield of 10% to 15% which is higher then your avg. investment vehicles (property, UT, stock or FD)
*
For stand alone agricultural BH, not taking into consideration security, you can do it cheap RM60-80K for a 2-storey using roofing spandex/cement board/wood structure. The spandex is for the outer walls and the cement boards the inner wall. If security is an issue, then lower floor may need to be of bricks and the costs go up. Since land is plenty and cheap for agricultural land, the gap between the outer /inner walls is increased to prevent heat from getting in. My friend says 1 ft. gap is mentioned by contractors. You will need reflective or insulation materials in the cavity though.

I think all 4 of you better attend a course together so that everyone is equipped with basic knowledge and intelligent questions can be asked by the clueless b4 sinking in the money. After discussion among the 4 of you and all are still enthusiastic about going though with it, then draft a well thought-out distribution plan of investments and duties/responsibilities. Have a proper exit clause in case of death/incapability etc.

But if I were you, I wouldn't kongsi. Good friends may become not so good friends. Sometimes, the spouses/relatives add even more spices to screw up your friendship.

You will never made enough money selling electricity to TNB with your solar power. There will not be a ROI. Who is proposing such a gadget? If it is one of your investing friends, beware. Isn't it nice to be able to supply to the partnership and made some money out of it?

rakyat
post Sep 9 2011, 04:46 PM

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QUOTE(sfchung @ Sep 9 2011, 03:17 PM)
For stand alone agricultural BH, not taking into consideration security, you can do it cheap RM60-80K for a 2-storey using roofing spandex/cement board/wood structure. The spandex is for the outer walls and the cement boards the inner wall. If security is an issue, then lower floor may need to be of bricks and the costs go up. Since land is plenty and cheap for agricultural land, the gap between the outer /inner walls is increased to prevent heat from getting in. My friend says 1 ft. gap is mentioned by contractors. You will need reflective  or insulation materials in the cavity though.

I think all 4 of you better attend a course together so that everyone is equipped with basic knowledge and intelligent questions can be asked by the clueless b4 sinking in the money. After discussion among the 4 of you and all are still enthusiastic about going though with it, then draft a well thought-out distribution plan of investments and duties/responsibilities. Have a proper exit clause in case of death/incapability etc.

But if I were you, I wouldn't kongsi. Good friends may become not so good friends. Sometimes, the spouses/relatives add even more spices to screw up your friendship.

You will never made enough money selling electricity to TNB with your solar power. There will not be a ROI. Who is proposing such a gadget? If it is one of your investing friends, beware. Isn't it nice to be able to supply to the partnership and made some money out of it?
*
Thank you sfchung sifu for the wisdom: the use of cement boards for walls (as oppose to bricks) and insulation to cool the BH is something new to me and will be helpful. Also exit plan, must bring this up in case any1 wants to cash out prematurely.

As for the taking course and getting our hands dirty, it is not possible for various reasons – BH is 3 hours drive away (Perak), we have our full time job and family obligations, 3 partners (not including me) are from affluent background and this is just a small venture of opportunity (vacant land + 1 ‘expert’ looking to increase his BH)

This is actually a business venture between the landowner and the ‘expert’ (friend with BH farms) but 2 other friends are given opportunity to be sleeping partners. I being the person living ‘hand to mouth’ wants to make sure my investment is given the best chance of succeeding hence trying to find out/ do more to improve the odds. That is why I'm grateful that walet sifus willing to give me pointers

As for not taking the risk, it is a real option but I want to explore the opportunity to the fullest before closing the door.

The ‘feed-in tariff’ was my idea as I was thinking about taking the offer on my landed property. No intention of keeping the profit myself as this is another investment to maximize the BH returns.

sfchung
post Sep 9 2011, 05:14 PM

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QUOTE(rakyat @ Sep 9 2011, 04:46 PM)
Thank you sfchung sifu for the wisdom: the use of cement boards for walls (as oppose to bricks) and insulation to cool the BH is something new to me and will be helpful. Also exit plan, must bring this up in case any1 wants to cash out prematurely.

As for the taking course and getting our hands dirty, it is not possible for various reasons – BH is 3 hours drive away (Perak), we have our full time job and family obligations, 3 partners (not including me) are from affluent background and this is just a small venture of opportunity (vacant land + 1 ‘expert’ looking to increase his BH)

This is actually a business venture between the landowner and the ‘expert’ (friend with BH farms) but 2 other friends are given opportunity to be sleeping partners. I being the person living ‘hand to mouth’ wants to make sure my investment is given the best chance of succeeding hence trying to find out/ do more to improve the odds. That is why I'm grateful that walet sifus willing to give me pointers

As for not taking the risk, it is a real option but I want to explore the opportunity to the fullest before closing the door.   

The ‘feed-in tariff’ was my idea as I was thinking about taking the offer on my landed property. No intention of keeping the profit myself as this is another investment to maximize the BH returns.
*
Sorry if I sounded a tad too pessimistic and wary. But that is the nature of this industry. 80% failure rate among other things. However, before you start anything else, please do a bird call test at the intended location of the BH. If the response is poor, there is no need to go further unless you want to try at other locations. I think the rest of the information, you should start reading from the very first post to educate yourself somewhat and get a gist of what swiftlet farming is all about.
mois
post Sep 9 2011, 10:59 PM

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Want to ask a few things. Basically swiftlet's life cycle. When the new birds start to fly, we can harvest alot of nests. But how long does it takes for the old swiftlet to lay eggs again? After we harvest, i see those old swiftlets will build the nests, again, how long does it take to build a nest? 3 months?
West Wing
post Sep 10 2011, 03:41 PM

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QUOTE(kohloh @ Sep 8 2011, 06:36 PM)
THE MALAYSIA HERO,,,,,,,,,,

http://www.youtube.com/watch?v=THqWbEt6auA
MANY HERE R HIS FOLLOWS,,,,,,
*
That Mr Tan!!!! He teach all to use right cleaning method and ensure that all nests are 100% pure and now, he is trying to push Rednest ????? Hope that not the truth cos I even heard of him trying to sell China investors the idea of breeding and swiftlets farming in China and one friend told me that he sold alot of eggs to him for this venture.

How true is it, I pun tak tahu lah??? So, Mr. Tan, I think maybe you also read this forum can kindly explain?
coolandy
post Sep 10 2011, 06:32 PM

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QUOTE(West Wing @ Sep 10 2011, 03:41 PM)
That Mr Tan!!!! He teach all to use right cleaning method and ensure that all nests are 100% pure and now, he is trying to push Rednest ????? Hope that not the truth cos I even heard of him trying to sell China investors  the idea of breeding and  swiftlets farming in China and one friend told me that he sold alot of eggs to him for this venture.

How true is it, I pun tak tahu lah??? So, Mr. Tan, I think maybe you also read this forum can kindly explain?
*
Creating Artificial Red Nest is not a secret. The methods can be obtained from Indon literature.

Short term gains but others suffer in the long run. I agree with WW that Mr Tan should explain himself here.


sfchung
post Sep 10 2011, 10:01 PM

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QUOTE(coolandy @ Sep 10 2011, 06:32 PM)
Creating Artificial Red Nest is not a secret. The methods can be obtained from Indon literature.

Short term gains but others suffer in the long run. I agree with WW that Mr Tan should explain himself here.
*
Shouldn't the Swiftlet associations here do a PR blitz in China advising the people there on how the vast majority of red nest are produced and encouraging them to eat only white EBN? What work do the associations do when they see such news? Place police report?
oneup
post Sep 11 2011, 10:05 AM

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All operators and exporters of EBN has to register at http:fosimdomestic.moh.gov.my on the news today.
Does that includes bh owners? Some say yes some say no. Any1 can confirm abt this?
West Wing
post Sep 11 2011, 11:40 AM

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QUOTE(oneup @ Sep 11 2011, 10:05 AM)
All operators and exporters of EBN has to register at http:fosimdomestic.moh.gov.my on the news today.
Does that includes bh owners? Some say yes some say no. Any1 can confirm abt this?
*
Now, everybody want a share in the big cake and slowly and obviously, sooner or later, you shall find more and more government bodies wanting a piece of the cake..........department like the health ministry, bomba and infact all govt. departments!!!!!!!!!

How come others don't attract such attention like pig, fish or fowl or anytype but just swiftlets?????? Self regulation by the Association with the support of the Government should be the best way to spearhead the healthy development of the industry without too many cooks.
oneup
post Sep 11 2011, 11:33 PM

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QUOTE(West Wing @ Sep 11 2011, 11:40 AM)
Now, everybody want a share in the big cake and slowly and obviously, sooner or later, you shall find more and more government bodies wanting a piece of the cake..........department like the health ministry, bomba and infact all govt. departments!!!!!!!!!

How come others  don't attract such attention like pig, fish or fowl or anytype but just swiftlets?????? Self regulation by the Association with the support of the Government should be the best way to spearhead the healthy development of the industry without too many cooks.
*
That means bh owners too?


Added on September 11, 2011, 11:34 pmIf bh owners too, there pose a huge problem...
They haven't even solve the issue of bh in city area...
If ppl have bh in city, who would register? It not legal anyways...

This post has been edited by oneup: Sep 11 2011, 11:34 PM
West Wing
post Sep 12 2011, 10:43 AM

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QUOTE(oneup @ Sep 11 2011, 11:33 PM)
That means bh owners too?


Added on September 11, 2011, 11:34 pmIf bh owners too, there pose a huge problem...
They haven't even solve the issue of bh in city area...
If ppl have bh in city, who would register? It not legal anyways...
*
Before, it was blessed by the authorities and then it become illegal. Are we now running illegal buz????

Before, it the town BHs having the problem and now, every BHs must be registered even BHs in the jungle and by the way, what was the initial reason behind the registration of BH?

In my opinion, only BHs at town need to be regulated and not those in plantation or agriland cos nobody even control chicken or duck rearing at agriland. TO ensure maximum growth in this industry, minimum interference with maximum support from the government is needed. New methods or improvement shall be provided by the govt. depts concerning the industry to ensure best results and success rate by giving free training and guidance by caring government to its raayat to ensure properties to the country.......like what they give to the other agriculture industries and not giving more and more worries and headache not to mention sleepless night every time some news leak out.

Like all investment, confidence is very important but the government and the Fed. Association isn't helping at all to ease the situation and sentiment of the industry. Providing positive directives and advices are definitely essential to the successful future of the whole industry and as always, I give better comment by giving confidence and encourage raayat to invest in the industry in win win way ......providing safe breeding places (BH) for the swiftlets and ensuring maximum output of fledged birds and in the future, there will be more and more birds and with better results for all including all that breed the young birds to share. Like the saying goes" Where got rice if we eat all the rice"

Healthy harvesting ensure better harvesting next season.........
mois
post Sep 12 2011, 10:51 AM

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What do u mean by healthy harvest? Only harvest when the young swiftlet start to fly?

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