Poultry Farming Business feasibility For 2,400 Layers Farm



BUSINESS PLAN FOR A 2,400 LAYERS POULTRY FARM.

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.

In the first year, at peak production, the farm should produce about 60 crates (30 eggs/crates) per day and generate N1.1million in revenue and about grossly N0.4million 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 utilised in the purchase of replacement birds. Annual revenue could be up to 16 million naira 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 upto 70 million naira in revenue and about N17.0 million on net profit every year.



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 business could also come in specialisation 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 in Nigeria, this industry is still grossly untapped and any part of the industrial 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 the industry in Nigeria 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 in Nigeria, 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.
Mission:
-Build a mechanised 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 mather 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 un authorized 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 Nigeria. 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.
1.6 Current status of the industry.
The poultry industry in Nigeria 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 N17 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 – N660,000
> Poultry house -(12m*25m) N1.7million
> Borehole – N150,000
> Delivery van – N
> Staff house – N380,000
> 20 units of Battery cages- N1.8 million
>Feed to lay – N341,000
> Point of lay birds -N2.28million
> Utility – N30,000
TOTAL = N7,341,000
3.7 City facility
requirement.
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.
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
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
6.0 COMMERCIALS
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.
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 N9 to N17.5million 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.
CONCLUSION
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 specialisation, 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.
Success is granted, God being by our side. Lagos is a large market and strategically located to expand and serve the rest of the nation and beyond.
Please do share with your friends.

BUSINESS PLAN FOR A 2,400 LAYERS POULTRY FARM.
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.
In the first year, at peak production, the farm should produce about 60 crates (30 eggs/crates) per day and generate N1.1million in revenue and about grossly N0.4million 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 utilised in the purchase of replacement birds. Annual revenue could be up to 16 million naira 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 upto 70 million naira in revenue and about N17.0 million on net profit every year.
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 business could also come in specialisation 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 in Nigeria, this industry is still grossly untapped and any part of the industrial 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 the industry in Nigeria 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 in Nigeria, 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.
Mission:
-Build a mechanised 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 mather 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 un authorized 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 Nigeria. 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.
1.6 Current status of the industry.
The poultry industry in Nigeria 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 N17 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 – N660,000
> Poultry house -(12m*25m) N1.7million
> Borehole – N150,000
> Delivery van – N
> Staff house – N380,000
> 20 units of Battery cages- N1.8 million
>Feed to lay – N341,000
> Point of lay birds -N2.28million
> Utility – N30,000
TOTAL = N7,341,000
3.7 City facility
requirement.
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.
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
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
6.0 COMMERCIALS
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.
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 N9 to N17.5million 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.
CONCLUSION
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 specialisation, 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.
Success is granted, God being by our side. Lagos is a large market and strategically located to expand and serve the rest of the nation and beyond.
Please do share with your friends.

5 comments:

  1. This is an excellent business plan about poultry farming business. Thanks to share..!!

    ReplyDelete
  2. Really interesting piece to come across as its been helpful in my studies

    ReplyDelete
  3. what will it cost to startup a 5,000 bird capacity poultry farm from scratch

    ReplyDelete
    Replies
    1. Hi Friend you want to breed the 5000 birds with floor breeding or cage breeding?

      Factoty of poultry cages in China. Bottom price for hot galvanized wire mesh cages.
      My whatsapp: 0086-13653867913
      Skype: Selina Boya
      For more details, you can add me for instant contact.

      Regards
      Selina

      Delete

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