Poultry is beyond reasonable doubt, one of the most lucrative business ventures in the agriculture industry today across the world.
Understanding the legalities of the business will help anyone to tap into the stream of wealth that poultry farming.
Basically, there are two most engaging business production aspects of poultry farming which includes;
- Broiler production (fatteners/meat production), and
- The Layers which is the egg production.
Poultry Farming is the widest aspect of poultry business and it also tends to be the most lucrative aspect, we once had a session of interaction and discussion on which of them seems to be the most lucrative between broilers and layers.
I need you to understand that as at the time of writing this article, the Nigeria government still imports egg from foreign countries, because the demand for egg is absolutely unbelievable the local production level can’t be capable to meet the consumer’s demand, As a country, our population is our major asset towards business exploit and this understanding will go a long way to help us succeed in food and agriculture industry just the same way mobile technology and other industries are excelling via the country’s population.
Understanding The Nature of the Business
The business basically entails raising chicken birds from day old (day 1 for hatching) into maturity; basically they are chicks for the first one month after which they are feeding on growers till 14 weeks, by the 14th week they are transferred to their layers pen in deep litters or battery cage, between the 14th and 22nd week, they begin to lay eggs; basically eggs are put together in a crate of 30 and stored for transportation to buyers out there.
The layers will lay for 73 to their 75 weeks, after which their laying ability begin to drop and they become spent layers, they are sold out and another new set of day old is been stocked.
That is how the routine goes like a recycling in layers poultry farming business.
With a stable egg production, medication and quality birds breed, you can make not less than 8 to 10 million naira from this venture, provided adequate knowledge, quality investment and consultancy is put in place. There are some very important factors we must put in place, so as to help to help the business flourish;
We don’t have to bother about the sales, demand and market, egg is one of the most demanded products in the market so as long as there are people around you, companies, restaurants and all of that here and there in your locality you can be sure of making massive profits.
Now the birds lays egg daily, some birds can even go as far as laying twice in a day, but on average birds lay eggs per day, now it is wisdom to get 700 birds if your plan is to have active 600 birds in production of egg, this is how we handle mortality rate and still be able to meet up with the business plans.
You cannot guarantee 100% health security for the birds, especially if they are been raised from day old, factors like low immunity, cold, exposure and stress will lead to death of some of them, we can only put measures like providing a heat source, vaccination, quality feeding and antibiotics to reduce stress and curb mortality rate but there will still be lose of few.
So 700 will help you have a stable egg production of 600 and/or more but not lesser than that.
To fill up a crate, you need 30 eggs, and currently now in Nigeria, a crate of egg goes for #750, #800.
And we can have 20 crates per day with 600 birds, so 20 x 800 = #16000.
You are going to earning 16,000 daily.
16,000 x 30days = 480,000
So from a layers poultry business farming of 600 layers bird, you are sure of earning #480,000 monthly.
By the first year of production you’d be able to stock another 1,200 birds and continue to increase in sales and production, that is how profitable poultry farming can be.
The major aspect of spending for startup capital includes;
- Worker’s salary.
- Vaccination and Medication.
- Operation deals, experts and miscellaneous Expenses
- Finance : As we progress, in this feasibility studies, i will be touching the aspect of financial need in determining the success of any poultry establishment anywhere in the world. You need to understand that financial capacity is not an option it is a necessity! You don’t have to see it as one of the needs, it’s the “major need” that will power others to flow. A good example now, you see the pae of feeds and nutrient is very important for the birds to do well and if they aren’t doing well, then the business will suffer serious set back and this will on the long run affect the venture; you must always have feeds and they must always eat, twice a day and you need money to achieve this.
- Expertise – Technical Know how : This is also important and i believe that is why you are reading the feasibility studies, because it’s important that you’d be equip with knowledge. Poultry Farming as a “how” and you must press for the know-how, in place of consultancy, research findings and gathering experience as well. But i want you to know you can get all that is necessary about poultry farming and you’re seeking for knowledge is always stressed in the first year, after which you too would have gathered much knowledge and experience that will make you need no consultancy again except for rare cases.
- Quality Housing : This is also very important, you must embrace a good quality housing system for your poultry business, this is very important!!! There are two major kind of housing system in layers poultry farming business and that is deep litter system and battery cage system; there has been a lot of contemplation over which of them will serve the best purpose in poultry farming.
- Water : Egg is in liquid form, so water is very important just as nutrients in their feeds must also be supplied. You must consistently make water available, and there are some certain vaccines/drugs that are only administered through water, good quality water also help to safe constipation, heat stress, and fight many disease.
- Biosecurity : There are enemies of poultry business, aside from normal thieves which we are used to, there are also bio-enemies that must be conquered, talking about organisms, like snakes, giant cat, and some dangerous organisms so what you basically do is make their house in such a way that those organisms can not
- Feeds and Nutrients : Feeds are the greatest determinant of success in any kind of livestock production, since livestocks are under man’s control, you must ensure they have a perfect feed formulation, this can be achieving two ways; 1. By consulting a specialist and 2. By consulting an already existing farms. You must also make good plan to put financial capacity in place while you are starting because their feeds and feeding must not stop for any reason why they have started laying, it can make their rate of egg lay to drop drastically.
- 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.
- Sales: Egg produced must be sold. Proper marketing with vigorous advertisement will ensure the product is made available to the target market, but i can guarantee in Nigeria of today, you won’t do much before you sell off your eggs because they are in high demand.
- Management: Pilfering shrinkages, indulgence, misappropriation are few of the several epidemic that constantly plaque poultry in Nigeria.
- Set Up a egg store, and strike deal with food companies and restaurants that you can be supplying on a consistent basis, this will keep the business and profits running and coming in with ease, there are so many of them in Lagos that need egg as their raw material and in other parts of the nation as well.
- Workers steal eggs, birds, feed, money and even drugs if they are not properly monitored, so don’t leave your responsibility to workers, you must monitor it and monitor them in order to build trust and make your business run well.
- As the business expands, transportation facility becomes a neccesity, so you must plan ahead for it.
- Sales agents and drivers could sell at different prices and report differently. Effective management of this ends are critical factor.
- There are agricultural loans you can access from the government per season for expansion.
- 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 benefit 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 600 birds.
- land – N500,000 – base on size and location
- Poultry house -#550,000
- Borehole – N250,000
- Delivery van – N200,000
- Staff house – N280,000
- 10 units of Battery cages- N600,000
- Feed to lay – N341,000
- Point of lay birds -N500 per one
- Utility – N30,000
- TOTAL = N2,201,500 above.
- 3.7 City facility
- 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 installedfor layer birds.
- 4.0 PRODUCTION PROGRAMME
- The Stocking plan involves the purchase of 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 2 tons per month of Feed which is the expected requirement for 600-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 N12.5million 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.
- 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.
We have come to the conclusion of this feasibility studies, am sure it must have empower and enlighten you the more on poultry farming business, i wish you all the best in your endeavors, and i strongly recommend you sign up your email on our website
So that you ccan be getting our future updates which can be very useful for you as well.
Akanni Tolulope Matthew
Matex Farms Holdings.