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Check Out Business Plan For A Standard Poultry Farm


The plan is the establishment of a poultry layers farm at an initial phase of 2000 birds capacity, table eggs will be produced and sold out, upon maturation, the birds will be producing an average of 55 crates of eggs at 82 percent daily, 385 crates weekly and 1650 crates monthly all things being equal.



,Expected monthly revenue from the sales of eggs is N1.32million and a yearly revenue expectation of N15.84million (gross) out of this, the rearing cost will be N10.3million (feeding, drugs/medications and other logistics).

Therefore net yearly profit expected before tax will be N5.54million. To achieve the above fund to the expected capital investment in the first phase is N12million (twelve million naira only) the business should break even at the end of the second year. This farm shall serve as source of eggs in its locality and the state at large, creating wealth, employment and training for other intended poultry farmers. 

 PROJECT PROFILE 

The project essentially is to set up a layer poultry farm to produce table eggs and market them, management and finance required as well as profits accruable are discussed in the work 

 BUSINESS BREIF 

The poultry farm houses the laying birds, the day old chicks will be acquired by purchase from a reputable breeder farm with excellent track records in the area of hatching in Nigeria, the day old chicks(DOC) will be reared to laying. The birds will lay for at least 70 weeks and the spent birds will be sold out for meat but before they are sold out, replacement stock would have been stocked and laying commences so as to ensure all year egg availability in the farm.

 OPPORTUNITY 

Nigeria is rarely meeting her poultry demand in poultry meat and eggs. Seventy percent (70%) of our consumed poultry products particularly eggs and meats are smuggled products. The demands for ready to eat egg far out weights the supply and yet countries like Niger, Chad and northern Cameroon essentially depend on our meagre supply. Companies such as Mr. Biggs, Southern fried chicken more or less scramble for little supply available and some have refused to introduce some recipes because of non-availability of poultry products. Essentially, our egg supply can only attempt to meet our edible demands hence the industry need is completely left out. The eastern parts of Nigeria as well as the southern part particularly depend on the Ibadan axis for Supply of eggs and poultry meat. This is basically because a few Lebanese, Israeli and Indian Companies have a cluster in Ibadan. 

Market reports also indicate that most oil companies and eateries in the region in question completely depend on the Ibadan cluster to get meat and egg products. This is a large market. Our opportunity is to strategically position ourselves in Plateau state and meet this large demand.

The environmental ambiance and climatic condition of Plateau state is greatly an advantage. We should also know that the purchasing power of our state and its environs is greater than most other parts of Nigeria and demand for poultry products is increasing yearly.

Poultry products are also a health advantage, having recently been classified to be of health advantage rather than risk.  

 TIME MARKETING

Egg demand fluctuates predictably throughout the year. The demand and hence the price increases dramatically in periods preceding festivity such as Christmas, Easter and Sallah. Eggs at these times sell nearly 50% higher. 

 PROPOSED BUSINESS LEGAL STATUS 

The business intends to integrate investment from four angles 

Business promoters: Kanyet Taket Global Enterprise.

Technical partners: 

Rois Farms limited will supply all the poultry equipments as well as training of staff.

Olam Hatchery: will supply the day old chicks.

Kanyet Taket Business Enterprise will provide financial support services in terms of training, marketing advice, coordination of other partners, procurement of essential equipment and consultation.

Financial Partners; we propose to obtain money from financial institutions(CBN) through the Plateau State medium enterprise development agency(PLASMEDA) . The agricultural loans available in the banks should be harnessed to achieve agricultural projects with some equity contributions coming from promoters with Government support.

Guarantors: the government of Plateau and Nigeria is sought to come in as partners. Other interested individuals are also expected to join forces as partners. Our demand from the government is to guarantee the necessary loans from the banks.

 EQUITY AND LOAN 

Loans and equity contributed to the project can be recovered in 24 months and could possibly reinvested for a first expansion 

 Requirements:

Access road 

Water through private borehole 

Electricity (grid cum private)

Land (water logged free)

Security from human sabotage.

 CONTRIBUTION TO THE ECONOMY 

Poultry contributes about 25% of the agricultural GDP in Nigeria and about 4% of the national GDP. One of the major employers of labour is the agricultural sector.

This present project will employ within the first phase 2 permanent workers and 5 casual staff at each point in time. It shall also generate wealth for the partners, suppliers, distributors, banks and workers. It will automatically add value to the immediate community where it is situated as transporters, land owners, workers and marketers of finished products will directly and indirectly induce improvement on the immediate economy.

Taxes also shall accrue to the state government, profit to partners and tariff on corporate taxes to the federal government. 

The facility should also be a source of training ground to the youth who want to go into poultry. Indigenous experts within the Country through the agreed partnership shall contribute knowledge and transfer skill to our youth.

 BUSINESS OVERVIEW 

Layer farming is the most technical of all aspect of poultry production. Egg production is the most popular form of poultry farming because egg consumption cut across wide divide; hence the demand for Eggs is on the increase. Poultry production comes 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 others. The business could also come in specialisation such as brooding, Point of lay production, liquid egg packaging, egg trading or egg depot business. Because of the vastness of this industry, entrepreneurs focus will be on an aspect and with time add other aspects either for vertical or horizontal integration in Nigeria, this is still grossly untapped and any part of the industry possess great potential. Specialisation and continuous improvement on skills is always paramount.

Poultry industry is a multi-billion naira industry, the major hindrances to the growth of this industry in Nigeria ranges from absence of credit facilities, high interest rates, and high cost of poultry feeds and availability of electricity which is important to run a farm. Because of the fallow nature of this industry in Nigeria, the prospect is high. Right now, the demand for eggs and poultry meat remains overwhelmingly high. 

8.1 CRITICAL SUCCESS FACTORS OF THE BUSINESS

Finance: Fund must be available as at when due according to plan to avoid creating stress factors which will cost so much in revenue loss

Expertise: The poultry 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.

Housing: Proper ventilation and spacing is a critical success factor. Position your house to give the bird’s maximum ventilation and reduce heat.

Bio security: Disease entrance and spread are as a result of any form of breach in bio security. There is use of foot bath, car bath and prohibition of unauthorised persons.

Watering: Water source is of great importance. Foul water source or contaminated water in poultry farms signifies that the farm will fail. Water should be managed to ensure that clear and clean water is available for birds ad libitum.

Nutrient: Most farms fail because they wanted to reduce cost of feeds by self milling. All nutrients must be readily available to prevent malnutrition.

Sales: Egg produce must be sold. Proper marketing with vigorous advertisement will ensure the product is made available to the target market. 

Management: Pilfering shrinkages, indulgence, misappropriation are few of the several epidemics that constantly plague poultry in Nigeria. Workers steal eggs, birds, feeds, 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 a critical factor.

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 for it to survive.