POULTRY FARMING BUSINESS PLAN SAMPLE
A poultry farming business plan provides the necessary support and developing one is important to success in poultry business. Poultry business is a very broad industry comprising of different sectors and sub-sectors which an investor can tap into. Areas of investment include rearing birds, investing in hatchery business, as well as going into the production and distribution of poultry feeds, supplements, drugs, vaccine and equipment.
A poultry farming business plan provides the necessary support and developing one is important to success in poultry business. Poultry business is a very broad industry comprising of different sectors and sub-sectors which an investor can tap into. Areas of investment include rearing birds, investing in hatchery business, as well as going into the production and distribution of poultry feeds, supplements, drugs, vaccine and equipment.
I hope you find this sample business plan for poultry production useful to developing one for your big and small farming businesses.
Download Poultry Farming Business Plan Template for 2400 Layers Production
1.0 EXECUTIVE SUMMARY
Table Egg production via the process of raising poultry layer birds from Point Of Lay (POL) for the purpose of producing table eggs and birds using battery cage. 2,400 POL birds, feeding and medication of the birds and sales of eggs and spent layers produced from them in the first one and half year after construction, increasing the number thereafter 5,000 Birds in the second year utilising Day Old Chicks, 10,000 capacity in the third, and 20,000 in the fifth.
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In the first year, at peak production, the farm should produce about 60 crates (30 eggs/crates) per day and generate 1.1 million in revenue and about grossly 0.4 million as gross profit after deduction of cost of feed on monthly basis. Spent layers would be sold at the end of one year of lay and utilized in the purchase of replacement birds.
Annual revenue could be up to 16 million and profit grossly could be up to 4.5 million in the first year. At full capacity, the project, housing 20,000 laying birds would generate up to 70 million in revenue and about 17.0 million on net profit every year.
DON'T MISS: Important Ideas On How To Run A Poultry Farm Business
1.1 Business Overview
Egg production is the most popular form of of poultry farming because egg consumption cut across wide divide. Poultry production come in different forms ranging from parent stock breeder meat (broiler/production), egg production, Quail production, turkey production, ostrich farming, duck farming, Geese farming and ornamental bird rearing among other.
The farming business could also come in specialization such as brooding, Point of Lay production, liquid egg package, egg trading, cold room marketing, day old chicks, feed milling, birds transportation or egg deport business.
Because of the vastness of this industry, entrepreneurs focus will be on an aspect and with time add other aspect either for vertical or horizontal integration, this industry is still grossly untapped and any part of the industrial possess great potential. Specialization and continuous improvement on skills is always paramount.
Poultry industry is a multi billion dollars industry: The major hindrances to the growth of the industry ranges from absence of credit, high interest rate, high cost of maize, unavailable electricity which is important for cold rooms, incubators and operation of automated cages. Because of the fallow nature of the industry, the prospect is high.
Right now the demand for egg, broiler meat, day old chicks, day old poult etc remain overwhelmingly high.
1.2 Description of Business
Mr Poultry’s plan to participate in chicken egg production. The business entails keeping of chicken from (Day old to) fourteen weeks when the growers will be transfer to cages. The caged birds at the age of 19 – 22 weeks start to lay eggs. The eggs are packed in crates of 30 packs, transported to the city where they are distributed to customers.
The laying birds by the age of 60 to 75 weeks of laying, are sold out as spent layers for meat.
1.3 Vision and Mission
- To produce nutritious eggs, generate employment, and create wealth for investor.
-Build a mechanized poultry that is efficient. And rewarding .
1.4 Value Proposition
Poultry Production for wealth creation.
1.5 Critical Success factors of the business
A. Finance: Fund must be available as when needed according to plan to avoid creating stress factors which would cost so much in revenue loss
B. Expertise: The poultry industry is knowledge based home employment of expertise is imperative. Consultancy is paramount. Training and retraining of staff is sacrosanct no matter how small the level and acquisition of knowledge of modern trend is a factor to growth.
C. Housing: Proper ventilation and spacing is a critical success factor. Position your house to give the birds maximum ventilation and reduce heat.
D. Biosecurity: Disease entrance and spread are as a result of any form of breach in biosecurity. Foot bath, car bath, prohibition of unauthorized persons etc.
E. Water: Watering and water source is of great importance. Foul water source or water getting contaminated in poultry house signifies that the farm will fail. Water should be managed to ensure that clear and clean water is available for bird ad libitum.
F. Nutrient: Most farm fail because they wanted to reduce cost of feed by compounding farms should only venture into self compounding on ground with available experiment. All nutrients must be readily available in the market to prevent malnutrition.
G. Sales: Egg produced must be sold. Proper marketing with vigorous advertisement will ensure the product is made available to the target market.
H. Management: Pilfering shrinkages, indulgence, misappropriation are few of the several epidemic that constantly plaque poultry in USA, Canada, Australia, the Netherlands and other countries of the world. Workers steal eggs, birds, feed, money and even drugs if they are not properly monitored.
Sales agents and drivers could sell at different prices and report differently. Effective management of this ends are critical factor.
I. Administration: . At full capacity,Management is separated from administration, when the owner is not directly involved in day to day management. Absentee farming is hazardous. Someone with stake in the venture should give quality time to it to survive.
MORE: Pictures Of Poultry Pen House Design Layout
1.6 Current status of the industry.
The poultry industry in many countries is largely untapped.
1.7 Contribution to National and local economy.
The poultry will provide employment in the first year for at lease two persons. By five years at full capacity it would employ about 14 persons. Contractors and suppliers should also benefit.
Nationally, it will reduce cash flight or lost in Forex and generate about 17 million per annum in revenue. The banks, insurance companies and Agricultural consulting firms shall all be beneficiaries with the attendant tax going to the government. The investors shall also have find a means of expressing their entrepreneurial skill.
The manure will service proximal farms and far farms. Egg marketers, maize or feed suppliers, transporters, spent birds marketers etc shall all be affected positively. The impact on the economy will be positive.
3.1 Operational Detail
Attendants and manager get to the pen latest 6.30am. Mix disinfectant and pour at the entrances. Change into work cloth and foot wears. Soak their legs with the disinfectant as well as wash hand with same. Each nest is observed for discomfort birds sick or dead. Such animals are then culled and recorded. Water is checked each Tip is tested to ensure normal flow.
Blocked Tips are cleaned or replaced. Feed (already measured) is given to the birds by evenly pouring them into the trough. Eggs are packed from the cage using basket or directly into the crates. Record is taken; this shall include number of morbidity, number of mortality, number of eggs, abnormal observation on feaces or in the pen etc.
The eggs now packed in crates, are taken to the store room for onward transport out to the city facility.
3.5 Staff Housing.
Attendants shall and should be housed in the farm or in close proximity for the sake of emergency such as insect attack, late feeding, brooding and security.
3.6 Infrastructural cost for Start up with 2,400 birds.
land – 660,000
Poultry house -(12m*25m) 1.7 million
Borehole – 150,000
Delivery van –
Staff house – 380,000
20 units of Battery cages- 1.8 million
Feed to lay – 341,000
Point of lay birds -2.28 million
Utility – 30,000
TOTAL = 7,341,000
3.7 City facility requirement.
SECRET: 7 Strategies to Achieve High Feed Efficiency In Poultry Production
A shop within the town shall serve the ware house feed and as depot for the produced eggs. Feeds from the company will be truck load. Sales to other farmers will generate additional income and provide the farm with reduce cost. When buyers buy from the farm egg outlet, it reduces visitation to farm which has attendant risk of break of security and biosecurity.
Following the completion of physical structures, Semi-automatic battery cages of premium quality will be purchased and installed in for 2,400 capacity pen. 20 units of 120 birds per unit capacity cages will be utilised to hold at least 2400 birds.
READ: Major Sources of Finance for Poultry farmers
4.0 PRODUCTION PROGRAMME
The Stocking plan involves the purchase of 2400 Birds as POL which will be placed in the first year. The birds will be purchased at 14 weeks age and hence will take 6 weeks to come to lay. They should peak by age week 30 when they are 17 weeks In the farm and spent by week 70 weeks and thereafter sold as Old Layers.
Within one month, the Spent Layers should have been sold out. 5 to 10% mortality room is allowed
GUIDE: Site Selection and LayOut of Poultry Pen Housing Location
5.0 QUALITY CONTROL
Biosecurity measure will be put in place to prevent disease outbreak. Foot bath for visitors and workers will be put in place at the entrances. Every vehicle coming into the facility will also pass through a bath and get sprayed. All quality control standards will be adhered to strictly so as to produce a world class standard.
Animals and materials will be kept away from the poultry pens. Biosecurity training will be mandatory given to attendants and other staff
SEE: Common Bacterial, Fungal, Viral Diseases Of Poultry
6.1 INPUT REQUIREMENT
The major material inputs required for the success of this proposed project are Point Of Lay, Feed (Grower mash, and Layer mash), various types of medications when needed and vaccinations according to schedules. The current prices and sources of these inputs as stated below are safe, dependable and readily available.
Plan to utilize Vital feed from UAC plc. With the consumption of 7 tons per month of Feed which is the expected requirement for 2400-capacity poultry, Poultry will be qualified for 12% discount on prices of Feeds from UAC.
COMPARE: Battery Cage Vs Deep Litter System
7.0 MARKETING PLAN.
Mr Poultry shall employ a Marketer at full capacity. He would be employed to sell the eggs from one egg deport to another/ through the marketing activities, many clientele base shall be created. These customers will be allocated dates.
They either pick up the eggs from the farm on their dates or have it delivered with the farm van at a price. All customers shall only be given allocation with a confirmation of a bank payment. To expand the clientele base, advert will be placed on different fora online.
8.0 PROJECTED REVENUE
The projected revenue from the project is mentioned in the summary. The revenue projection for the first year in lay is in the figure of 9 to 17.5million from the sales of eggs and spent layers.
8.1 CASH FLOW PROJECTION
The projected cash flow for the Farm could be presented on request.. Positive net cash balances are realized at the end of second laying year. From the projection, the farm shows profitability.
8.2 PROJECTED PROFIT AND LOSS
There is no reasonable profit visible in the first year of the project due to huge investment cost but subsequent recorded reasonable profits.
Mr Poultry farm shall be a success. Poultry Farming is a highly developed industry. Its efficacy and productivity is a product of bringing together of all the available industrial facilities, this can never be provided enough by just one individual or company, hence Mr Poultry plan to collaborate with investors and experts.
The industry works effectively as a network with different specialization, bringing in diverse inputs. Also, to avoid overcrowding of ideas and thinning of the limited resources, focus will be on egg production for a long time under the supervision of an experienced consulting firm.
[SAMPLE] POULTRY FARMING BUSINESS PLAN FOR BEGINNERS - PDF
PRODUCTION POULTRY BUSINESS PLAN TEMPLATE TO SET UP A CHICKEN FARM
Though many successful companies have been started without the benefit of a formal business plan on poultry farming, it can be an essential factor in the birth and growth of your farm. Our poultry egg, meat and hatchery business plan will help you obtain financing, arrange strategic alliances, attract key employees, and boost your confidence. Our poultry production business plan sells your poultry project to the world and gives you direction as the world answers back.
A comprehensive business plan for poultry production that includes marketing and finances can help determine the feasibility of a value-added enterprise. Developing your poultry business and marketing plan helps you define your business, creates a roadmap to operate the farming business, sets the goals you will aim for, and satisfies outsiders’.
The basics of any business plan include the following.
What? Describe your product or service.
Why? Describe the need for your product or service.
Who? Describe the customer.
When? Draw a timeline and list all the tasks that need to be accomplished.
Where? Describe the location of your business.
Building a Sustainable Business: a Guide to Developing a Poultry Business Plan for Farms and Rural Businesses helps alternative and sustainable agriculture entrepreneurs develop profitable enterprises. Sample worksheets illustrate how real farm families set goals, researched processing alternatives, determined potential markets, and evaluated financing options.
Here’s a complete sample poultry farming business plan template & feasibility report you can use for FREE to raise money.
Fakabe poultry is a farm focused on both egg and meat production that provides for a large market range. It also produces manure as a by-product. It is based in yola city, wuro haussa. The founders have noticed the health implication of red meat and are creating a business to meet the increased demand for white meat and eggs.
Chickens happen to be a great source of white meat and are also largely known for egg production. The persons who have come together to start this business are Faustin Hategekimana, Aisha Alimi, Eric Hagenimana, Lawal nura bada, Khadijah Ibrahim Khalid, Asmau Abubakar Umar.
Not only are the founders interested in meeting the demands of the customer, we also plan to create utmost satisfaction for these customers. The founders also want to use this business as a means of creating employment within the community it is based in and to contribute to the economy of the country. We plan on provide products with quality and maintain this supply efficiently.
This is a partnership business that plans on distributing eggs and chicken to restaurants, home delivery food centers, hotels, schools, clubs, bakery and catering businesses and supermarkets. We also plan on doing this at very affordable prices. We will also distribute manure to farmers that are into crop production.
This business plan for poultry farm is meant to articulate the vision and future of our poultry, and to appeal to investors and external stakeholders to get involved in this business and help with its funding as it is a capital intensive business. We also hope that it will serve as a guideline for the firm’s employees to move towards the goal of the poultry.
Not only do we offer products, but we offer services as well. We plan on providing home delivery services to customers who order a certain amount of products. This offer will mostly be used by the section of our target market that uses eggs in large quantities like schools and bakeries.
1000 chickens would be optimum for the initial operation of the business. Production site is in Yola city, plenty open space, cheap labors, road connection, water availability and immediate access to markets like yola market. A house with 5 rooms will be rented for the storage of pellets, equipments as well as for the employees to guard the farm. Revenue for this will be gotten from contributions from each partner.
Investment in this business shall be allocated to the following purposes: buying chickens, building cage house, stocking the pellets, hiring the experts and other miscellaneous tasks. Fifty percent gross margin is expected within 6 months of its operations withholding the chances of any accidental or unexpected incidence and we hope to obtain the breakeven point within 2 years.
We have considered the risks, financial, health and technology wisely
Poultry farm Objectives
Fakabe poultry will measure its success by its ability to achieve the following objectives:
• Becoming the "Best and most hygienic poultry producer in the area" complying by the national standards for food and drugs.
• Turn in profits from the first six months of operations.
• Maintain 50% gross margin ratio.
• Winning the hearts and tastes of our beloved consumers and establishing a brand image of the company through heavy marketing campaigns in the first one year.
Poultry farm Mission
Fakabe poultry’s mission is to provide customers with quality, fresh, and valuable products. To respect all employees and enable everyone to have a say in company affairs.
Quality and service are our number one priority. To provide investors with opportunities to receive a nice return on investment and high-quality growth. To contribute to the community through physical and social programs.
Fakabe’s poultry farm intends to have the largest poultry farm products. We plan to increase and expand our production of chicken to challenge the ever growing demand for chicken products. The nutritious and protein rich products from our farm would always be the first choice of our consumers.
Our keys to success:
Fakabe poultry will follow these principles in order to achieve success in its market:
• State of art cage framework accommodating optimum number of chickens with lessened possible hazards.
• Diverse slaughters network, market chain management, optimum inventory level and ‘customer is king’ policy.
• Regular visits by veterinary medical workers and hygienic poultry house environment.
Fakabe poultry is owned by six persons. They are namely Faustin Hategekimana, Aisha Alimi, Eric Hagenimana, Lawal nura bada, Khadijah Ibrahim Khalid and Asmau Abubakar Umar. It is a partnership and each person has an equal share in the business and is also equally liable for any business debts or claims.
Location and facilities
At this point in the business, we don’t have an exact point yet but we have narrowed the location down to wuro haussa, yola city. We are trading from this spot because is it a great place to reach our target market. We think the population base is large enough for our business and it has a stable economic base that promotes a healthy environment for the poultry.
Also we think it is a spot that could tap a healthy workforce. We also considered pedestrian traffic and we think a large percentage of them are potential customers.
We plan on having a good parking space and sufficient security in our working site to create a safe environment for the customers. We plan on renting the building at first, and then buy it after we gain enough profit.
Our facilities will include a broiler grow out facility, a layer grow out facility, a hatchery unit and table eggs production unit. The hatchery unit is where the fertile eggs will be incubated to produce day old chicks. The incubation will be done manually. The production cycle will be made up of 50% broilers and 50% layers.
It will include the setter incubator and the hatchers incubator. The broilers grow out facility will be a deep litter system and the layer grow out facility will be a battery cage system. Both systems require adequate housing and feeding and drinking equipments. The eggs produced in the table eggs production unit are infertile and the amount produced depends on the layer chickens.
We can be contacted through our email address. We also have a website where we can reach our customers and see their complaints, feedback and recommendations. The website will also be a forum for customers to familiarize themselves with the poultry.
All these and the phone numbers of the management team will be distributed in flyers and in the means we market our business as our contact information.
Poultry industry in the last 40 years has shown dramatic changes in both domestics and international environments. Those environmental forces include are classified into 2 categories: the internal forces and external forces. Internal and external forces include:
1. Poultry industry competitors: When the company have few competitors, it is more likely to get more profit. For example in Nigeria, competition is today driven by a cost of manufacturing and the quality of products sold to the customers.
2. Supplier dynamics: Suppliers of raw materials to the poultry companies are the ones the affect the costs of poultry products. If there is development of new market and technology, the price of raw materials will remain low.
3. Opportunities: Like in Nigeria, there are many opportunities in poultry industry. The first opportunity is that there is small number of large scale poultry farmers, and the other ones are small scale business farmers. So this will make businessmen to vertically integrate in the poultry business.
4. Cultural and religious forces: As we know, the presence of taboos can be a hindrance in the development of poultry farming. However in Nigeria, there are very few, maybe none, laws or cultures that prohibit eating poultry products. This is a good opportunity for businessmen to develop and expand their poultry farm with in the country without any challenge.
Challenges facing the poultry industry
Poultry farming has some challenges that need to be attended to with vigor. Below are some of the common challenges that are faced by poultry farmers:
Death of chickens: In poultry, one or many chickens usually die because of their fragile nature and the weather they are living in. Some factors such as heat and overcrowding causing that death can be controllable.
Diseases: Pneumonia and other minor diseases are among problems faced by poultry farmers, but this problem can be solved by seeking a veterinary doctor.
Our business has start up cost and we will need a bank account, we chose our bank to be GTBank because of its proximity in the area. This section of the plan shows projected startup costs prior to our opening.
Start-up expenses for Fakabe poultry include initial insurance payments covering both general liability and product liability, pre-launch marketing to cover flyers, a direct mail campaign, and advertisements in local papers, the development of a website for customer interaction, and the normal legal expenses for consultation and permitting. Other current assets include office and store furniture, shelving, a computer, phone system, and tools. Long-term assets include the computer, printers, delivery van.
Poultry farm start up costs
Business cards 2000
Blank invoices 2000
Advertising / marketing 10000
Feeders and drinkers 8000
Lighting system 50000
Egg tray 5000
Total equipment 478000
POULTRY FARM PRODUCTS
We offer chicken eggs and chicken meat that will be gotten from layers and broilers to our target market. We plan to take pride in the uncompromising quality of our products. We also offer fertilizer in form of chicken manure. This is mostly used in vegetable farming and as an ingredient for feed in fish farming.
Fakabe poultry shall produce high quality, contaminant-free chickens and the freshest eggs to satisfy the taste of our beloved costumers. The products shall be distributed into a number of distributors - supermarkets, public markets, bakeries, restaurants and in the company’s own retail space for easy access for marketing agents and consumers. In brief our products are;
• Main products
b) Live chickens
a) Chicken droppings
We have big plans for the future. We plan on supplying cracked egg shells for some detergent companies for use. These special detergents are used in washing basins and pots. Another thing we have planned for the future is the sale of processed chicken meat.
We plan on servicing our customers by providing home delivery for customers who are willing t buy at least a certain amount of our products.
In the future, we plan on creating a restaurant that has eggs as its main menu. It will be like a breakfast restaurant. In the future, if this business gets large enough, we would also like to build our own bakery. A major ingredient in most baked goods is eggs and we will be funding that through the poultry.
In our poultry, we are planning to keep 500 chickens for meat, and 500 chickens for eggs. For 500 chickens for eggs, each chicken is expected to lay at least 1 egg per day. For the whole day, 500 eggs will be produced.
For every 3 months, 500 adult chickens will be sold. Our production target is to reduce cost of production by at least 20% in the next 3 years.
Our fixed costs include:
• Insurance payments covering both general liability and product liability,
• Rent for the company retail space
• Area of about one plot will be allocated for the farm;
• A house will be rented for the storage of pellets;
• Materials for office and store furniture, shelving, a computer, phone system, and tools.
• Long-term assets including the refrigerator unit for the shop, window displays, a refrigerated delivery van.
Raw materials used include
• Water, Feed
Cost of labor
Labor Salary in Naira
Food technicians 20000
Security guards 6000
Total salary 76000
Others include the veterinary doctors, drivers and technician that we pay by the hour.
Labor in poultry farms are usually unskilled laborers who take care of the poultry services, guard the chicken and its products and make deliveries. Their skills differ and they are mostly temporary labor.
The food technicians prepare balanced fodder mixtures complying with the fodder concentrate. Labor size in poultry production is usually unstable.
We are starting with POL (point-of-lay), these are birds in their fourteen to twenty weeks of Age,(birds often start dropping their first egg from 22weeks to 24weeks of age). Advantage of acquiring Point Of Lay birds is the reduced risk. Prices of POL at press time ranges from N750 to N950/bird.
In budgeting for feeding, a bag cost about N2,200 today and could feed 100birds for 3 days. A bird at good lay point generate between N6 to N10/day as gross profit. This means that a flock of 100 laying birds could generate N800 profit per day, and about N24,000/month hence by implication 500 birds could generate N120,000/month.
At the end of the 54 to 72weeks of lay, the spent layers would be sold for nearly the equivalent amount with which the POL is purchased.
With the broilers, we buy day old chicks that will mature into live chickens in 8 weeks after which another batch of day old chicks will be bought.
There are two main production systems in Nigeria. That is laying cage and deep litter systems.
a) Battery cage system
Here hens are kept throughout their productive life time in cages. However, this system requires high capital investment. Each cage that will cage 50 birds cost N30, 000. Therefore, for 500 birds, it will cost N300, 000. In a battery cage system, hens do not have contact with droppings which reduces infections. Feeding, providing water, egg collection, removal of litter and cleaning are easier for the poultry attendants to perform.
b) Deep litter system
Here hens are confined in a house with floor space of 8 to 10 birds/m2 to ensure free movement. The floor will be covered with a 5cm to 10cm deep litter of grain husks (maize or rice), straw, wood shavings or a similarly absorbent (but non-toxic) materials. That’s why there is sawdust in the budget. After old litter has been removed out of the house, the floor will be cleaned and disinfected.
MARKET ANALYSIS SUMMARY
Although in the Nigerian populace, there are a few taboos, religious or cultural practices that will prevent the consumption of poultry produce, during the market segmentation, we found out that nearly everybody eats eggs and meat, so we are targeting the whole market, individuals, homes and firms that use eggs and chicken in large quantities.
Specifically there is a high demand for live chickens for home consumption or as gifts during festivals like Christmas, Eid-al-fitr, New Year, Easter etc.
Target market segment strategy
Individuals are a small sector in the market segmentation. They are a pretty large group but they buy a relatively small amount of eggs.
The part of the market that we hope to supply large amount of eggs to are the industries that need eggs. We have strategically placed our site close to these industries. They are bakeries, restaurants, boarding schools, home delivery food centers, retail shops and supermarkets.
Another part of our target market that will order our products in medium quantities are the homes that will require our home delivery as we have a set amount of eggs they need to order for. Homes generally utilize eggs in the preparation of edibles like chicken burger, chicken pie, salads, Scotch egg, omelets, egg soup etc.
The parts of our target market interested in live chickens are small scale poultry farmers and festive individuals. We have considered the needs of each section of the target markets and we plan on meeting these needs effectively.
While some countries are reputed to be important exporters of poultry products, Nigeria has a problem of meeting its local demand of poultry products. This problem started for the poultry market in 1984 when the federal government banned the importation of maize.
This had quite the effect on declining poultry production. But the poultry market has seen more favorable times since the independence in 1960, peaking in 1982 with 40 million commercially reared birds. But it has been declining since, to an estimated 6 million in 1997.
But then, it boomed again to 20 million in 2003 and has been progressing ever so slowly since has more people are entering the poultry business.
In the poultry business now, most of the products supply comes from the informal farmers with holdings of 50-700 birds. But then there are the “big guns” especially in the southern part of the country, good examples being Obasanjo Farms (Nig.) Ltd and UAC foods.
Competition is not so keen in the markets, however it still exists. The reasons are;
• Poultry products are not branded products; hence what usually matters is effective positioning and timing.
• Poultry market is not crowded, it’s a seller’s market.
• Most poultry produce are sold through informal channels. Competition is usually found within local products and imported ones.
However, this is an increasing business in terms of number of people who are doing it. This is because Nigeria still importing chicken product like eggs from other country. Our competitors include those who sell meat and fish. Although those competitors are available, a large number of Nigerians still lacking essential food components, which are proteins.
According to data from CBN and FAO, only 2Kg of beef is available to an average Nigerian per year, and only 4Kg of eggs is available to each Nigerian in a period of one year. There are poultry farmers; however, many of them are backyard farmers, small scale and they production is too low to satisfy the demand of customers.
The demand is high for live birds and eggs either for consumption or for gift in the time of Christmas, New Year, Easter, id-el-fitri etc. restaurants, hotels, and supermarkets in Nigeria. The products of poultry are also needed in fast food business which engages in the sale of products like chicken, eggs bronze, etc.
After having a look and analyzing this scenario we decided to come in this industry to solve problem of malnutrition in our population. Therefore, to achieve a breakthrough in our business we will be using our motto “customer is the king.” This means that everything we will be doing is basically to satisfy the needs of our customers.
Business competitive edge
Our strength over its competitors is firstly based on the fact that we are not entering this business to make much money. We are entering this industry to solve the present problem that our population is facing. We are here to provide quality affordable chicken products.
We saw that some of our competitors are seasonal they only produce their chicken at a given period of time. We won’t work like that always is ready to provide chicken and eggs.
We know the importance of time and know that people have many and varying activities; knowing all that we will be delivering our products to the customer’s door. Through our motto “customer is the king” we will have an ever fast delivery.
The other factor that will help us to have success over our competitors is to motivate our employees and helping them to improve their way of living, this will help our employees to be focused on their work and provider better services to their customers.
We expected our business to grow and start working at national level and this will be achieved through hardworking of management team and efficiency and effective use of materials and time is the key to be successful over our competitors.
Fakabe poultry will strive for the production of products with the highest quality and we plan on employing the following strategies. Our location puts us in proximity of a major hotel, restaurant, schools with campuses and home deliver food centers we will be supplying to. We would also make contracts with hawkers in markets to sell our live chickens and eggs. We would also make contracts with retail shops for constant supply of eggs at intervals.
Pricing and Promotion strategy
The price of the chicken would range from N1500 up to N1700 depending on the size and quality. Also, the price for a crate of eggs ranges from N600 to N1000. The price of a wheelbarrow of manure costs about N200. These prices would also vary depending on the existing market price of poultry meat and eggs. As we compete with other poultries, we will promote our products through advertisements with the aid of streamers and pamphlets.
We can also make our business known through recommendations and connections with well-known businessmen in the locality. We will also make our products and service known in the newspapers. We have created a website too to let the consumers know of our business.
Fakabe poultry also has a website where customers can interact with us and get a feel of what the business is about. We know a site or two where we can place online advertisements and we would also make mentions of our poultry in online newspapers.
• Better farm management practices
• Regular visit by veterinary doctors
• Recycling wastes as fertilizer
• “consumer is king” policy
• Keeping up with new technology for production efficiency
The management team is simply the partners in this business. They are Faustin Hategekimana, Aisha Alimi, Eric Hagenimana, Lawal nura bada, Khadijah Ibrahim Khalid and Asmau Abubakar Umar.
1. Faustin Hategekimana, Chief Executive Officer: As the top manager, the CEO, he is typically responsible for the entire operations of the poultry. It is his responsibility to implement decisions and initiatives and to maintain the smooth operation of the poultry, with the assistance of the management team
2. Aisha Alimi, Chief Operational Officer: as the COO, she looks after issues related to marketing, sales, production and personnel. More hands-on than the CEO, the COO looks after day-to-day activities while providing feedback to the CEO.
3. Khadijah Khalid, Chief Financial Officer: Also reporting directly to the CEO, she is responsible for analyzing and reviewing financial data, reporting financial performance, preparing budgets and monitoring expenditures and costs. The CFO routinely checks the corporation's financial health and integrity.
4. Asmau Abubakar, Chief Information Officer: She reports directly to the CEO and is a more internally oriented person focused on technology needed for running the poultry. She is also in charge of the web designs of the poultry.
5. Eric Hagenimana, Chief Revenue Officer: He is responsible for all revenue generation processes in an organization, and is ultimately accountable for driving better integration between all revenue-related areas.
6. Lawal Nura Bada, Chief Visionary Officer: As the CVO, he decides on the general direction of a company, and has a broad and comprehensive knowledge of all matters related to the business of the organization and the vision required to steer its course into the future. The CVO is generally in charge of defining corporate strategies, working plans, and often product ideas.
Apart from the management team, other personnel include
4. food technician
5. Veterinary doctor
There are 5 cleaners, 2 security, 1 technician, 2 food technicians and a veterinary doctor. There is also a driver to make the delivery services. Except from the veterinary doctor, the personnel are on a monthly payroll and are all in a short time contract with the poultry.
INTERNAL ENVIRONMENTAL ANALYSIS
SWOT stands for strength, weakness, opportunities and threats and we have made an analysis in each case.
• Produce high quality eggs enriched with protein
• Relatively good infrastructure systems
• Good marketing system
• Eggs and chicken are not seasonal products and can be eaten any time of the year
• In this area, the poultry business hasn’t been over-exploited
• Poultry are environmentally friendly
• Capital intensive. Starting a poultry business requires a large capital funding.
• Outbreak of disease can ruin entire business in a go
• The smell can be quite disturbing
• Expansion into large scale production of by products(fertilizer and detergent)
• Export to neighboring towns
• A large and successful poultry will ensure food security
• More competition
• Avian diseases
• High feed ingredients prices
• Threat of import of frozen chicken
EXTERNAL ENVIRONMENTAL ANALYSIS
Socio-cultural – Eating habits of our consumers will definitely affect our business. Also, the success of restaurants and other firms that order our products will indirectly affect our business.
Technological - A good technical infrastructure would lead to better production and hence lower costs. Technology will also mean more effective business marketing.
Economic – economic trends such as demand and supply will determine the sustenance and profitability of the business. Also inflation rates will affect the way we pay our employees and the price of the product.
Political – this will include government policies concerning inspection by the ministry of health and organizations like NAFDAC.
In every project found. We have to pass through the financed process. This have to do with the starting of business, whether the personal income used or term loans from banks. In our business, the financing structure and ways of doing it is like the path below.
1) Equity contribution: this cover the land we are using for the poultry, and also the facilities in the building. The total income will be store rooms, office and constructions as well as the furnishing part.
2) Personal income of 3 million Naira, which will be used to start-up the operations, the hatchery equipment and other equipment’s needed for the poultry.
Since for a part up business borrowing money from a bank is not advisable for our financing project. Financing by loan becomes our secondary motive if we can get enough income for the start up business. When we borrow and use personal income, it is easier to obtain and quicker than loan. The tax rate is low.
Projected Income statement
Income 1st year 2nd Year 3rd year
Live chicken Sales 4704000 4704000 4754000
Eggs sales 5292000 5292000 6372000
Fertilizers 41600 41600 50000
Total income 10037600 10037600 11176000
Feed 2640000 2640000 2772000
Day old chicken purchase 600000 600000 610000
Laying eggs chicken purchase 375000 375000 450000
Insurance 50000 50000 50000
Long term assets 1601000 0 100000
Internet 50000 50000 50000
Labor 912000 912000 900000
Business card 2000 2000 2000
Advertisement 10000 10000 15000
Other expenses 100000 200000 120000
Total expenses 7240000 5739000 4919000
Net income before tax 3697600 4286000 6257000
Taxes 379760 379760 379760
Consultant 600000 600000 600000
Depreciation 49830 49830 49830
Net income 2668010 3256410 5227410
In the third year, we are planning to raise 100 addition point-of lay chickens. This will make our income to rise as well as the cost of feed and POL chicken to increase. The total income will rise from 10037600 to 11176000.
We will need also 2 additional cages that will cost N100000. The depreciation amount comes from the equipment’s that are expecting to be sold after a certain period of time.
Cash flow analysis
No Particulars Year 1 Year 2 Year 2
1 Capital cost 3,000,000 0 0
2 Recurring Costs:
a Land and building 1,601,000 0 0
b Cost of chicks 975,000 975,000 985,000
c Cost of feed 2,640,000 2,640,000 2,772,000
d Insurance 50,000 50,000 50,000
e Labor 912,000 912,000 900,000
f internet 50,000 50,000 50,000
g Business card 2,000 2,000 2,000
h Advertising 10,000 10,000 15,000
i consultancy 60,000 60,000 60,000
j Other expense 100,000 200,000 120,000
Total 7,240,000 5,739,000 4,919,000
3 Sale of manure 41,600 41,600 50,000
4 Sale of eggs 5,292,000 5,292,000 6,372,000
5 Sale of live chickens 4,704,000 4,704,000 4,754,000
6 Depreciated value of
a Cages 25,800 25,800 25,800
b Computer and printer 6,430 6,430 6,430
c Other equipment 11,600 11,600 11,600
d building 6,000 6,000 6,000
7 tax 379760 379760 379760
Total benefit 2,668,010 3,256,410 5,227,410
Tax to be paid is 10% of the net profit. Depreciation on cages is 8.3% of the money we bought them. Depreciation on computer and printers is 9.2% of the money we purchased them. Depreciation on building is 3% of the money used to build. Depreciation on other equipment is 15% of the money we purchased them.
As to records management, each project will have a record book on which information on the number of stocked live birds, slaughtered and deaths are recorded. Record keeping will help us to budget accurately and make informed decisions about the poultry. The records will contain information such as
• All feeds consumed and purchased
• Number of hens purchased
• Deaths and causes
• Vaccination and other veterinary requisites expenses
• Labor and other variable costs
• Number of eggs collected daily
• Number of eggs sold and used for home consumption
• Number of eggs damaged and
• Water and feed intake daily.
• Changes in our pricing policies or that of our competitors
• Fluctuation in revenue from distributors and retailers
• Timing of costs related to acquisitions or payments
Contagious disease and virus outbreak is very deadly; if one of the chickens should catch the disease, all of them will be affected and if it's not recognized and treated early it will lead to the death of all the chickens which is a great loss for the business. And also some of the diseases are also contagious to human not just between the chickens which will affect the workers and also those that eat it.
Disease prevalence varies from one area to the other. The problems that may trigger disease conditions are direct sunlight on egg trays or nests, poor ventilated houses and very high temperatures in and outside the poultry house, which may weaken egg shells resulting in poor egg quality. All these conditions will be avoided to the best of our abilities.
Another thing we considered during the risk assessment is the mortality of the chickens which is inevitable since we are dealing with living things. This can be managed with good management and has been calculated to range between 5-10%.
Technology is good but they also have their disadvantages. There are normally problems involved in using technology; the use of the machine that collects eggs may fail to work or spoil, making the work slow and adding more cost to the business by repairing it.
The cost for electricity is also not easy and some electric problems can lead to fire outrage and burn the building causing the loss of assets and perhaps the entire business.
As we considered these risks we have also made contingency plans for unprecedented events or occurrences. As per the health risks, we will have plans with a veterinary doctor that will have regular checkups with the chickens while giving them the best environmental conditions. Another contingency plan we will make is insurance that will protect our assets.
One of the risks we have to face mentioned earlier, the occurrence of a fire outrage will be curbed by placing fire extinguishers at strategic places. And in case of financial crises, we may have to resort to getting loans.
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