The tendency of the average Nigerian investor is to set up a business on a foundation beyond his experience because he sees others doing it. He starts a poultry farm as a large investment of capital and stock which will require immense amounts of energy and funds to maintain which may be beyond his capability.
Some inexperienced investors have set up, misled by fantastic statistics which make them believe that poultry business is the quickest route to become a millionaire overnight.
For example, i saw a thread at nairaland.com where a poultry promoter gave the impression that one can invest N500,000.00 in poultry and reap N5million in a year.
This statistics is a deceit, misleading and an IMPOSSIBILITY in the present day Nigeria.
Some starters rely on dubious statistics generated by some arm chair consultant.
Some are attracted by the earning potentialities but give no thought to the other side of the coin.
Nigerians are enthusiastic about poultry farming and many are going into it. This is good news and this blog supports them by giving valuable insights usually overlooked or neglected but which are essential to success in the business. One mistake being made by many inexperienced starters is working out unrealistic profit expectations on paper.One needs to understand the factors or situations that makes realistic profit expectation realizable in poultry farming to be able to make a realistic income forecast.
The best advice is to start modestly on a small scale and in the process of managing it,the owner will be able to know how much can be made from the business.This was the advice given to a client who purchased some of the poultry reports on this blog.He has a large plot of land at Ibadan and was ready to set up a big farm based on the availability of funds.
He was advised to start with a small farm and from his experience would be able to decide later how to expand.He bought the suggestion and has set up a smaller farm.This way,experience can be gained without having to pay high prices for it as in a large first investment.That is the best way for an inexperienced starter to start a poultry farm.
If you are a green horn and have the financial capability to rear 5000 birds,you may start with 1000 in the first cycle.Based on experience and profits gained,increase the stock gradually, say every 6-12 months until the planned maximum capacity is achieved. You can use the profits earned in one cycle to commence another cycle.In my own opinion,it is not wise for a starter, a green horn to put in all the capital at once on a 5000 bird farm.You may go ahead anyway if you have adequate financial reserves to fall back on, have the right logistics in place and have the capacity for risk.
Many Nigerians are always in a haste to become owners of big businesses from inception.One Nigerian who got my poultry reports and sought my counsel,who had access to borrowed funds or a grant from an uncle wanted to set up a 2000 layer farm, a piggery and a fish farm all at once.He is a starter who has zero experience and no knowledge in all the three areas.My suggestion was that he set up one, master it before setting up another line.He was ready to invest the whole capital on the 3 areas at once. To me, it is too foolish a risk to take with borrowed funds without other reserves to fall back on.
There are some who have the money to invest in the business but do not have the time.They may have very limited or no poultry training and/or experience and their success in the business is tied to their ability to engage someone as manager to supervise the farm.The manager must be a trained, experienced and capable person who has the personality suited for the work. The personality requirements suited for the work include mental and physical abilities.
The personality requirements essential to success in poultry farming, expected of a hired employee manager include:
-Personal liking for the business
-Attention to details as the business is largely composed of details
-Ability to create your own system for the work,not to be tossed about by many.Stick to one.
-Ability to deploy common sense to take quick & correct decisions when necessary to avert disaster
Energy and Promptness
-Ability to concentrate time and attention on the work to ensure that no detail is neglected.
There are several other personality requirements but if your farm manager lacks the essentials stated above,it is clear that you may have placed your farm in the wrong hands.