Poultry Business Plan
and Feasibility Study
INTRODUCTIO/BACKGROUND: A greater percentage of the total
meat consumption in the country was met
by the export from other countries, thus
depriving many young Nigerians of the opportunity of exploring and harnessing
the economic potential of poultry farming business available in the country.
The few people who go into the business,
barely produce enough to meet the poultry demand in the country. Putting
this scenario into consideration, it is
therefore necessary to capitalize this opportunity to serve the people and to
make the country self dependent in the poultry products. This plan will
focus on meat production (broilers ) and
egg (layers).production
- The business plan is written on the
establishment of a poultry farm that will specialize in the production of
egg and meat for both household and
industrial use. The project (farm) will require an initial capital of N2,150,000
that will be used for acquiring a land, buying of equipment, feeds chicks etc.
From the research made, it was discovered that the project is feasible since
the market demand for this product have not been fully satisfied, egg are most
time ordered from nearby states. The firm will be located at and supply or
providing egg and meat for Akwa Ibom people. For a start 2000 Chicks
(1000 layers and 1000 broilers) will be acquired and a crate of egg will be
sold for N600 on average, while a broiler will be sold for N1000.
LOCATION OF THE
BUSINESS: The
farm will be located in Ikot Ekpene L.G.A of Akwa Ibom State in an
area of about 1 plot of land with plenty of
open space, cheap labors, access road connection, and water availability
for the farm house with 3 rooms rented for the storage of pellets, equipment as
well as for the broilers and layers. There will also be a separate room where the
day old chicks will be nurtured to maturity before being transferred to the
main rooms. .
Market
opportunity:
There
are few people in the state already carrying out this business though on a very
small scale. The demand for egg has not being fully satisfied that is why we
have scarcity of it in some area. Some of the eggs consume in Akwa Ibom state come from neighboring states
and is sold between N650 and N800. There is high demand for that for both
domestic and industrial uses. As was mentioned earlier the
residents of Akwa Ibom state and neighboring states being the target market, awareness will be
made by means of advertisement. The advert will be made on television, radio,
newspapers etc. the price we intend to sale our product will be lower than the
existing price, we are going to make use of distributor scattered in different
part of the state. We will make sure that none of our customers are
disappointed, demand will be met on time, there will be discount for bulk
purchase. The farm shall have marketer at full capacity. He will be employed to
sell the eggs from one depot to another. Awareness will be made to fast food
restaurants, hotels, frozen food stores and guest houses to expand the
clientele base.
COST
IMPLICATION OF THE BUSINESS:
The initial cost of starting this small scale
poultry farm is about N2,150,000 that will be used for acquiring 1000 layers,
and 1000 broilers a plot of land
building structure that house the Chicken buying equipment daily feeding and
medical treatment.
S/N
|
Particulars
|
Values
|
1
|
Batch
size
|
1000
layers and 1000 broilers
|
2
|
Batch
interval
|
Broilers
(6 weeks),layers (12 months)
|
3
|
Cost
of day old chick
|
N
250 each
|
4
|
Cost
of feed
|
N
2,500 per bag
|
5
|
Cost
of equipment (drinkers, feeders etc)
|
N
200 per bird
|
6
|
Cost
of insurance
|
N
200,000
|
7
|
Cost
of vaccine
|
N50
per bird
|
8
|
No
of batches for the first year
|
Layers
(1), Broilers (8)
|
9
|
No
of batches sold in the first year
|
Layers
( 1) ,Broilers (8)
|
10
|
Cost
of broiler
|
N
1000
|
11
|
Cost
of eggs
|
N800
per crate
|
12
|
Cost
of manure at 50kg/bag
|
N150
|
CASH
FLOW ANALYSIS:
COST IMPLICATION/BUDGET OF THE BUSINESS
CAPITAL COST
1
|
Construction
of a poultry house for two thousand birds
|
N
850,000
|
2
|
Cost
of land
|
N700,000
|
3
|
Equipment
for 2000 birds at N200 per bird
|
N400,000
|
4
|
Electrification
and electrical installation
|
N200,000
|
|
TOTAL CAPITAL COST
|
N2,150,000
|
WORKING
CAPITAL
1
|
Cost
of 2000 chicks(1000 layers and 1000 broilers)at N250 each
|
N
500,000
|
2
|
Cost
of concentrated food for 1000 broilers at N2500 for the first batch
|
N330,000
|
3
|
Cost
of concentrated food for 1000 layers at N2500 for the first batch
|
N800,000
|
4
|
Veterinary
aid, and medical insurance
|
N
300,000
|
|
TOTAL WORKING COST
|
N
1,930,000
|
|
TOTAL PROJECT COST
|
N
4,080,000
|
Expected
annual return:
BROILERS:
At
maturity, which will take about 6-7 weeks,
each broiler will be sold out at the rate of N 1000 eah. Therefore in 6
weeks, 1000 birds will be expected to generate N 1million. And in a year, the
annual return of meat production from the farm is estimated at about N8million
from the sale of 1000 birds every 6 weeks.
LAYERS: In
the first year, at peak production, the farm should produce about 30 or more crates (30 eggs /crate) per day with
a crate being sold at N800 each and generate about N24,000 everyday, which is
approximately N8,640,000 in a year. By
the age of 60 to 75 weeks, the layers are sold out as spent layers for meat.
Income will also be generated from the sale of manure. Therefore the annual
return from the farm in the first year will be NN16,769,600
PROFITABILITY
ANALYSIS
S/N
|
|
FIRST YEAR
|
SECOND YEAR
|
THIRD YEAR
|
1
|
Sales
of 1000 broilers at N1000 each in 8 batches for one year
|
N
8,000,000
|
N8,800,000
|
N9,680,000
|
2
|
Sales
of eggs at n800 per crate
|
N8,640,000
|
N9,504,000
|
N10,454,400
|
3
|
Sales
of manure at n150 per 50kg bag for one year
|
N129600
|
N142560
|
N156816
|
|
TOTAL ANNUAL INCOME
|
N16,769,600
|
N18,446,560
|
N20,291,216
|
|
GROSS PROFIT
|
N10,419,600
|
N11,461,560
|
N12,607,716
|
Sales are expected to increase by 10% in the second and
third year.
THREE
YEARS CASH PROJECTION:
S/N
|
|
FIRST YEAR
|
SECOND YEAR
|
THIRD YEAR
|
1
|
Cost
of day old chick at N250 each for broilers in 8 batches
|
N2,000,000
|
N2200000
|
N2420000
|
2
|
Cost
of day old layers for 12 months( 1 batch)
|
N250,000
|
N275,000
|
N302,500
|
3
|
Cost
of starter and finisher feeds for both layers and broilers
|
N3,800,000
|
N4180000
|
N4598000
|
4
|
Vaccine
and medical insurance
|
N300,000
|
N330000
|
N363000
|
|
TOTAlEXPENDITURE
|
N6,350,000
|
N6,985,000
|
N7,683,500
|
S/N
|
|
FIRST YEAR
|
SECOND YEAR
|
THIRD YEAR
|
1
|
Total
capital cost
|
N2,150,000
|
|
|
2
|
Recurring
cost
|
N6,350,000
|
N6,985,000
|
N7,683,500
|
|
Total
cost
|
N8,500,000
|
N6,985,000
|
N7,683,500
|
|
Benefit
|
N16,769,600
|
N18,446,560
|
N20,291,216
|
|
Net
benefit
|
N8,269,600
|
N11,461,560
|
N12,607,716
|
BUSINESS
SWOT ANALYSIS
STRENGHTS
1.
The shared values of the project
members with particular reference to team work, commitment and perseverance.
2.
The strong participative and democratic
style of leadership demonstrated by the members of the project
3.
The business management skills of the
project members.
4.
The managing members of the project are
energetic, knowledgeable, creative, and enthusiastic.
WEAKNESS
1. Lack
of advanced management skills.
2. Lack
of comprehensive understanding of strategic planning framework.
3. Lack
of trained human resource on the field of poultry disease prevention and
control.
4. Lack
of comprehensive marketing strategy and plan.
5. Lack
of funding to procure equipment and other assets.
OPPORTUNITIES
1. The
opportunities in terms of ownership and procurement presented by FMARD (Federal
Ministry of Agriculture and Rural Development).
2. The
opportunities in terms of skill development by means of training presented by
FMARD.
3. The
utilization of information technology to enhance the front office and back
office operation as well as key areas, such as processing, marketing and
distribution.
4. Government
support of the poultry industry as it is one of the industries that is
considered to be feeding the nation.
5. The
opportunity to supply government institution such as prisons, colleges etc.
THREAT
1. Threat
arising from electricity prices, is a
threat to the project as its operations will be more costly and thus force the
project to pass on the additional cost to consumers. This is a threat to the
business as it has potential to result in reduced sales and profit.
2. Threat
from well established competitors.
3. Threats
from suppliers in the case of rising feed cost.
4. Indirect
competition from distant emerging commercial and subsistence farmers.
Sustainability
plan: The
firm will be a commercial poultry farm therefore it will require a full time
labour and geared toward producing on a scale for the sale of egg.
Birds
usually starts to lay at around five month (20-21 weeks) of age and continue to
lay for 12 month (52 weeks) on average, laying fewer egg as they new the
moulting period.
The
typical production cycle lasts about 17 months (72 weeks) and involves three
distinct phases as follows.
Phase 1: Small Chick or Broilers: This phase last
from 0-2 months during which small Chicks are kept in facility (broiler’s
house) separate from laying birds.
Phase 2: Growers: This phase last about 3 months
from the ninth to the twentieth week of age. Growers may be either housed
separately from small Chicks or continued to be reared in broiler cum-grower
houses. Appropriate care will be provided to the growers particularly between
their seventeenth and twentieth week of age as their reproductive organs
develop during this period.
Phase 3: Layers: growers are transferred from the
grower’s house to the layer house when they are 18 weeks old to prepare for the
laying cycle. Birds typically lay for a twelve month period starting when they
are about 21 weeks old and lasting until they are about 72 weeks old.
Phase 4: Collection of egg: Eggs will be
collected frequently to prevent hen from brooding it or trying to eat them and
also to prevent the eggs from becoming damaged or dirty.
There have been
several developments to increase the market value of eggs. They include
omega-3eggs, folate and lutein which enrich the eggs and increase the market
value.
Environmental aspect
of poultry farming which include avoiding or minimizing visual views, noise,
odor and waste should also be considered. When constructing a poultry farm,
future plans should be taken into consideration. For example, after the
operation starts, waste materials will be generated. Construction planning
should include plans for isolated area to dispose waste materials without
causing any health or environmental risk , including risk to water resources
until some specialized company for compost production collects the waste. The
meat production section of the farm will include a slaughter house which will
minimize cost and increase profit.
A shop within the town
shall serve as a ware house for feed, a store for frozen products, as well as a
depot for the produced eggs.
Bio security measures will be put in place to prevent
disease outbreak. All quality control standards will be strictly adhered to.
CONCLUSION
From
the survey carried out and the projection made it is discovered that the
project will be a worthwhile one. The project has the ability to pay back its
good profit making it very viable.
I have the confidence that this idea (dream)
and further research will lead this business to greatness. When the business is
well established, it will provide employment for both the owners and others, it
will also provide egg and meat for both
household and fast food or industrial use.
Poultry Business Plan
and Feasibility Study
INTRODUCTIO/BACKGROUND: A greater percentage of the total
meat consumption in the country was met
by the export from other countries, thus
depriving many young Nigerians of the opportunity of exploring and harnessing
the economic potential of poultry farming business available in the country. The few people who go into the business,
barely produce enough to meet the poultry demand in the country. Putting
this scenario into consideration, it is
therefore necessary to capitalize this opportunity to serve the people and to
make the country self dependent in the poultry products. This plan will
focus on meat production (broilers ) and
egg (layers).production
- The business plan is written on the
establishment of a poultry farm that will specialize in the production of
egg and meat for both household and
industrial use. The project (farm) will require an initial capital of N2,150,000
that will be used for acquiring a land, buying of equipment, feeds chicks etc.
From the research made, it was discovered that the project is feasible since
the market demand for this product have not been fully satisfied, egg are most
time ordered from nearby states. The firm will be located at and supply or
providing egg and meat for Akwa Ibom people. For a start 2000 Chicks
(1000 layers and 1000 broilers) will be acquired and a crate of egg will be
sold for N600 on average, while a broiler will be sold for N1000.
LOCATION OF THE
BUSINESS: The
farm will be located in Ikot Ekpene L.G.A of Akwa Ibom State in an
area of about 1 plot of land with plenty of
open space, cheap labors, access road connection, and water availability
for the farm house with 3 rooms rented for the storage of pellets, equipment as
well as for the broilers and layers. There will also be a separate room where the
day old chicks will be nurtured to maturity before being transferred to the
main rooms. .
Market
opportunity:
There
are few people in the state already carrying out this business though on a very
small scale. The demand for egg has not being fully satisfied that is why we
have scarcity of it in some area. Some of the eggs consume in Akwa Ibom state come from neighboring states
and is sold between N650 and N800. There is high demand for that for both
domestic and industrial uses. As was mentioned earlier the
residents of Akwa Ibom state and neighboring states being the target market, awareness will be
made by means of advertisement. The advert will be made on television, radio,
newspapers etc. the price we intend to sale our product will be lower than the
existing price, we are going to make use of distributor scattered in different
part of the state. We will make sure that none of our customers are
disappointed, demand will be met on time, there will be discount for bulk
purchase. The farm shall have marketer at full capacity. He will be employed to
sell the eggs from one depot to another. Awareness will be made to fast food
restaurants, hotels, frozen food stores and guest houses to expand the
clientele base.
COST
IMPLICATION OF THE BUSINESS:
The initial cost of starting this small scale
poultry farm is about N2,150,000 that will be used for acquiring 1000 layers,
and 1000 broilers a plot of land
building structure that house the Chicken buying equipment daily feeding and
medical treatment.
S/N
|
Particulars
|
Values
|
1
|
Batch
size
|
1000
layers and 1000 broilers
|
2
|
Batch
interval
|
Broilers
(6 weeks),layers (12 months)
|
3
|
Cost
of day old chick
|
N
250 each
|
4
|
Cost
of feed
|
N
2,500 per bag
|
5
|
Cost
of equipment (drinkers, feeders etc)
|
N
200 per bird
|
6
|
Cost
of insurance
|
N
200,000
|
7
|
Cost
of vaccine
|
N50
per bird
|
8
|
No
of batches for the first year
|
Layers
(1), Broilers (8)
|
9
|
No
of batches sold in the first year
|
Layers
( 1) ,Broilers (8)
|
10
|
Cost
of broiler
|
N
1000
|
11
|
Cost
of eggs
|
N800
per crate
|
12
|
Cost
of manure at 50kg/bag
|
N150
|
CASH
FLOW ANALYSIS:
COST IMPLICATION/BUDGET OF THE BUSINESS
CAPITAL COST
1
|
Construction
of a poultry house for two thousand birds
|
N
850,000
|
2
|
Cost
of land
|
N700,000
|
3
|
Equipment
for 2000 birds at N200 per bird
|
N400,000
|
4
|
Electrification
and electrical installation
|
N200,000
|
|
TOTAL CAPITAL COST
|
N2,150,000
|
WORKING
CAPITAL
1
|
Cost
of 2000 chicks(1000 layers and 1000 broilers)at N250 each
|
N
500,000
|
2
|
Cost
of concentrated food for 1000 broilers at N2500 for the first batch
|
N330,000
|
3
|
Cost
of concentrated food for 1000 layers at N2500 for the first batch
|
N800,000
|
4
|
Veterinary
aid, and medical insurance
|
N
300,000
|
|
TOTAL WORKING COST
|
N
1,930,000
|
|
TOTAL PROJECT COST
|
N
4,080,000
|
Expected
annual return:
BROILERS:
At
maturity, which will take about 6-7 weeks,
each broiler will be sold out at the rate of N 1000 eah. Therefore in 6
weeks, 1000 birds will be expected to generate N 1million. And in a year, the
annual return of meat production from the farm is estimated at about N8million
from the sale of 1000 birds every 6 weeks.
LAYERS: In
the first year, at peak production, the farm should produce about 30 or more crates (30 eggs /crate) per day with
a crate being sold at N800 each and generate about N24,000 everyday, which is
approximately N8,640,000 in a year. By
the age of 60 to 75 weeks, the layers are sold out as spent layers for meat.
Income will also be generated from the sale of manure. Therefore the annual
return from the farm in the first year will be NN16,769,600
PROFITABILITY
ANALYSIS
S/N
|
|
FIRST YEAR
|
SECOND YEAR
|
THIRD YEAR
|
1
|
Sales
of 1000 broilers at N1000 each in 8 batches for one year
|
N
8,000,000
|
N8,800,000
|
N9,680,000
|
2
|
Sales
of eggs at n800 per crate
|
N8,640,000
|
N9,504,000
|
N10,454,400
|
3
|
Sales
of manure at n150 per 50kg bag for one year
|
N129600
|
N142560
|
N156816
|
|
TOTAL ANNUAL INCOME
|
N16,769,600
|
N18,446,560
|
N20,291,216
|
|
GROSS PROFIT
|
N10,419,600
|
N11,461,560
|
N12,607,716
|
Sales are expected to increase by 10% in the second and
third year.
THREE
YEARS CASH PROJECTION:
S/N
|
|
FIRST YEAR
|
SECOND YEAR
|
THIRD YEAR
|
1
|
Cost
of day old chick at N250 each for broilers in 8 batches
|
N2,000,000
|
N2200000
|
N2420000
|
2
|
Cost
of day old layers for 12 months( 1 batch)
|
N250,000
|
N275,000
|
N302,500
|
3
|
Cost
of starter and finisher feeds for both layers and broilers
|
N3,800,000
|
N4180000
|
N4598000
|
4
|
Vaccine
and medical insurance
|
N300,000
|
N330000
|
N363000
|
|
TOTAlEXPENDITURE
|
N6,350,000
|
N6,985,000
|
N7,683,500
|
S/N
|
|
FIRST YEAR
|
SECOND YEAR
|
THIRD YEAR
|
1
|
Total
capital cost
|
N2,150,000
|
|
|
2
|
Recurring
cost
|
N6,350,000
|
N6,985,000
|
N7,683,500
|
|
Total
cost
|
N8,500,000
|
N6,985,000
|
N7,683,500
|
|
Benefit
|
N16,769,600
|
N18,446,560
|
N20,291,216
|
|
Net
benefit
|
N8,269,600
|
N11,461,560
|
N12,607,716
|
BUSINESS
SWOT ANALYSIS
STRENGHTS
1.
The shared values of the project
members with particular reference to team work, commitment and perseverance.
2.
The strong participative and democratic
style of leadership demonstrated by the members of the project
3.
The business management skills of the
project members.
4.
The managing members of the project are
energetic, knowledgeable, creative, and enthusiastic.
WEAKNESS
1. Lack
of advanced management skills.
2. Lack
of comprehensive understanding of strategic planning framework.
3. Lack
of trained human resource on the field of poultry disease prevention and
control.
4. Lack
of comprehensive marketing strategy and plan.
5. Lack
of funding to procure equipment and other assets.
OPPORTUNITIES
1. The
opportunities in terms of ownership and procurement presented by FMARD (Federal
Ministry of Agriculture and Rural Development).
2. The
opportunities in terms of skill development by means of training presented by
FMARD.
3. The
utilization of information technology to enhance the front office and back
office operation as well as key areas, such as processing, marketing and
distribution.
4. Government
support of the poultry industry as it is one of the industries that is
considered to be feeding the nation.
5. The
opportunity to supply government institution such as prisons, colleges etc.
THREAT
1. Threat
arising from electricity prices, is a
threat to the project as its operations will be more costly and thus force the
project to pass on the additional cost to consumers. This is a threat to the
business as it has potential to result in reduced sales and profit.
2. Threat
from well established competitors.
3. Threats
from suppliers in the case of rising feed cost.
4. Indirect
competition from distant emerging commercial and subsistence farmers.
Sustainability
plan: The
firm will be a commercial poultry farm therefore it will require a full time
labour and geared toward producing on a scale for the sale of egg.
Birds
usually starts to lay at around five month (20-21 weeks) of age and continue to
lay for 12 month (52 weeks) on average, laying fewer egg as they new the
moulting period.
The
typical production cycle lasts about 17 months (72 weeks) and involves three
distinct phases as follows.
Phase 1: Small Chick or Broilers: This phase last
from 0-2 months during which small Chicks are kept in facility (broiler’s
house) separate from laying birds.
Phase 2: Growers: This phase last about 3 months
from the ninth to the twentieth week of age. Growers may be either housed
separately from small Chicks or continued to be reared in broiler cum-grower
houses. Appropriate care will be provided to the growers particularly between
their seventeenth and twentieth week of age as their reproductive organs
develop during this period.
Phase 3: Layers: growers are transferred from the
grower’s house to the layer house when they are 18 weeks old to prepare for the
laying cycle. Birds typically lay for a twelve month period starting when they
are about 21 weeks old and lasting until they are about 72 weeks old.
Phase 4: Collection of egg: Eggs will be
collected frequently to prevent hen from brooding it or trying to eat them and
also to prevent the eggs from becoming damaged or dirty.
There have been
several developments to increase the market value of eggs. They include
omega-3eggs, folate and lutein which enrich the eggs and increase the market
value.
Environmental aspect
of poultry farming which include avoiding or minimizing visual views, noise,
odor and waste should also be considered. When constructing a poultry farm,
future plans should be taken into consideration. For example, after the
operation starts, waste materials will be generated. Construction planning
should include plans for isolated area to dispose waste materials without
causing any health or environmental risk , including risk to water resources
until some specialized company for compost production collects the waste. The
meat production section of the farm will include a slaughter house which will
minimize cost and increase profit.
A shop within the town
shall serve as a ware house for feed, a store for frozen products, as well as a
depot for the produced eggs.
Bio security measures will be put in place to prevent
disease outbreak. All quality control standards will be strictly adhered to.
CONCLUSION
From
the survey carried out and the projection made it is discovered that the
project will be a worthwhile one. The project has the ability to pay back its
good profit making it very viable.
I have the confidence that this idea (dream)
and further research will lead this business to greatness. When the business is
well established, it will provide employment for both the owners and others, it
will also provide egg and meat for both
household and fast food or industrial use.
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