Business Plan for Small Scale Broiler Production - Poultry

Poultry farming for the purpose of raising Day-old Chicks broilers for an optimum of seven weeks to be dressed as meat is here referred to as broiler production. The DOC are procured from reputable hatcheries, feed in the first three weeks with broiler starters and then in the remaining weeks, with broiler finisher. The bird which at this stage would weigh on the average of about 2.9kg live is dressed and stored in cold room to be sold for meat.
Mr Giants poultry plan to venture into poultry. The commencement strategy is to start with broiler production with 1000 birds as the target. 1020 birds shall be acquired from reputable hatchery. These birds shall be transported by night from Ibadan to Mr Giants in Ogun State. Construction cost is about N420, 000. They are housed, fed and watered ad libitum (meaning continuously) day and night for seven weeks. The birds at the target maturity shall be harvested by a processing company who will come in with their vehicle, weigh live, issue invoice and pack to transport to their processing plant. At each point in time, another batch will be in the process to ensure an initial monthly 1000 birds harvest. Target is to achieve 2,900kg (3,311kg) each time hence about 7,700kg of feed which will cost N738, 640 (i.e. for 308 bags) will be needed. Each requirement for purchase of DOC is about N160, 000; others (salary, fuel and medication) will be about N80, 000). Total cash outflow is in the average of N978, 640 bringing the total capacity requirement to about N1, 398,640.
Running cost per month is N818, 640. Account receivable will be on an average of N 1,160, 000 (N 1,324,400). Gross difference per batch would be on the average of N341, 360 (N 505,760). The business when effectively run can break even in four months, if the cost of land is not inclusive.
The demand for poultry (broiler meat) is ever increasing. It is one business that the opportunity for growth ever remains large. Continuous exploitation and expansion will be the status of the industry for a long time. Below are few exploitable opportunities to be exploited by Mr Giants Poultry.
1. Expansion to monthly harvest of 1000 birds in the first three months generating a gross profit of about N250, 000/month.
2. Expanding to 2000 birds per month in the first one year generating N500, 000 gross profits per month with the introduction of two breeding pen.
3. Opportunity within the first one year to dress and sell directly to eateries with the acquisition of 4KVA generator and a defeathering machine hence selling at N630/kg dress weigh hence increasing the profit margin by 35%.
4. The opportunity to build one’s own cold room and create a clientele base for broiler production is fallow and can be harnessed within 1 year post commencement.
5. Purchasing a cold van for distribution of cold chicken to an ever demanding restaurant, cold rooms, eateries and hotels is an opportunity waiting to be tapped.
6. Finally, a well determined Mr Giants poultry strategically managed could in five years, generate in revenue N ———- by putting in place, a plant that can process 2000 bird per day to generate over a billion in annual revenue and profit to the tone of about N150 million per annum. This is because it is possible that based on available data on poultry consumption in Nigeria which is drastically increasing by the government policy which banned poultry importation and entrance of new consuming outlet such as KFC, Mr Biggs and other sales outlet. Lifestyle is also improving.
Marketing Channels

1. Companies that purchase in bulk by weight, to dress and sell.
2. Dress and sell to eateries, hotels, cold rooms and malls.
3. Sell directly to festive celebrants during festivity.
1. Dress, process and sell in own cold room.
2. Supply to eateries and other cold rooms.
3. Sell live birds for good bargain.
Good management is important to the success of this project. Learning before commencement is better than learning on the job because poultry is capital-intensive hence not suitable for experimentation.
Inputs such as drinkers, feeders for chicks and growers, brooding gas or charcoal pots, litter materials, feed and water must be those that have to be accepted as suitable by experienced experts or farmers.
Water management is a critical factor. Easy to manage but often mismanaged leading to catastrophic result. Water is ad libitum (continuous) in all poultry. In small poultry, on the litter system, care must be taken to ensure that the birds do not scratch litters into the water because this contaminate, infects and starve the birds. Routine and constant practice is to frequently lift and clear the drinkers, position them a little higher as the birds grow and minimize contamination and spillage by all means to reduce incidence of water starvation, coccidiosis and salmonelloses. Water source must also be tested to ensure its freedom from contamination.
Broilers are fed ad libitum as well. Conversion ratio is about 0.53 (53%). Birds should be encouraged to feed 24 hours to ensure that by the end of six o r seven weeks, they weigh above average. The bottom line in broiler production is the more they eat, the more they weigh.
Proper temperature and humidity shall be maintained throughout the first two weeks. Paper on the floor is the preferred litter in brooding. Ensure that the birds do not hurdle together because it could lead to death by suffocation.
Initiative is essential to creating a niche and hence a uniqueness that will ensure profitability. Mr Giants Poultry is a dream that will be a reality if optimal chance and resources is allotted to it. Note that, similar to other small enterprise, absenteeism would be a setback. This form of Farming is a highly developed industry. Its efficacy and productivity is a product of harnessing of all the available industrial facilities, this can never be provided enough by just one individual or company. The industry works effectively as a network with different specializations, bringing in diverse inputs. To avoid overcrowding of ideas and thinning of the limited resources, focus will be on broiler production for a long time under the supervision of an experienced consulting firm. Horizontal and vertical integration should be considered after all potentials of the focal point have been fully utilized. Following stabilization, feed production, broiler production or even parent stock breeding are opportunities that could be added.
WEEK                           FEED (kg)                   FEED (25 kg bag)                           COST (N)
1                                        290                                    12                                         28,800
2                                        620                                     25                                        60,000
3                                      1,030                                    41                                        98,800
4                                      1,490                                    60                                        143,040
5                                      1,880                                    75                                         180,480
6                                      2,370                                    95                                          227,520
TOTAL                             7,680                                   308                                        738,640

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