The purpose of the project is to meet the demand of customer and built strong customer relationship, to create the employment opportunity for others and to contribute to the growth of the economy, of the country with the objective is to reduce poverty, malnutrition, unemployment and imports of contrabands in country. The poultry business is a very popular business. Because it is very easy and very small amount is need to start the business. Although there have many existing competitors in the market, but there has a high chance to succeed because existing competitors aren’t able to fulfil the customer’s demand. They are also failing to meet the customers need in the perspective of service. This project describes us to succeed in poultry business through Market research and analysis, Customer scenario, Market plan & Marketing strategy.
BUSINESS CONCEPT
Purpose of the venture: To meet the demand of customer and built strong customer relationship, to create the employment opportunity for others and to contribute to the growth of the economy, of the country.
OBJECTIVE OF THE FOUNDER
The major objective of the founder is reducing poverty, malnutrition, unemployment and imports of contrabands in country. Besides, we want to provide quality product to customer and maintain the supply sufficiently.
DESCRIPTION OF THE FIRM
This is a sole proprietorship business where the main activity of the firm is to provide quality product to the nation at large.
We will collect chicken and eggs from different producers basically available in the nation. Chicken and eggs will be distributed to restaurant, super shop, hotel, community center, and bakery and catering houses around. Prolong the sufficient supply to the customer is one of our most important purpose. We want to supply extend area of Nigeria with affordable price.
Product or service:
The product is chickens and eggs. The farm will distribute these products around Nigeria as a whole. Quality assurance is the main motto of our business. We are not compromise in the question of quality. To ensure the quality we always take high care of our hens and eggs. Now days, from chickens and eggs harmful diseases are spread out. But we are supplying our chickens and eggs with ensuring that it is free from all kind of unhealthy conditions, which can create harmful diseases. Cost of poultry business is not so high. One can easily start a business with a minimum amount of money. But our cost of business is high, because our business is highly future oriented. The primary cost of our business is given below:
We also provide some additional facility to our customers and consumers that are not provided by other suppliers:
- We reached our product (chickens & eggs) to the customers by our own transportation with a low transportation cost.
- If any dreadful products are identified by the customers, we always make it change.
- Processed meat are also supply if customer feel needs.
- We ensure products are available all times
- Poultry business is full with competitors. But there is great prospect to succeed, because most of the suppliers are not able to adequately supply the product.
MARKET RESEARCH AND ANAYLSIS
As we know, Nigeria is an over populated country. So, there is no equilibrium between demand and supply and more or less suppliers fail to satisfy the customers. Most of all, in food business if it is daily product there is no loss. So, there is a great prospect being succeeded
Each and every people need chickens and eggs. Eggs are the ingredients of cakes, bread, home let etc. So, restaurant, bakery, hotel, community centers need eggs and chickens every day. As the different customers has high demand of chickens and eggs, we have a high prospect of success, and for success we need continuous market research by following way:
- Customer scenario:
- As we all know that, chicken and egg are very nutritious food items. Doctors always prescribe it as nutritious food. From statistical data, each and every day a family needs at least four eggs in this country. Most of all children are fond of egg. So, there is a great prospect to being succeeded as being act as distributor. We will distribute our product to household customers, restaurant, hotel, bakery, cookery etc.
- Market:
- The farming company focus, first of all, operates on the regional market as well as on the export market. In this sector, market is very competitive. The key competitors in distributing chicken and eggs are regional competitors. The company has to compete with them. The demand of chicken and eggs is very comprehensive. As the demand is very high but the sufficient suppliers are not present there. As a result, the price of chicken and eggs are increasing day by day. So there is great opportunity of earning high profit with less effort.
- Analyze competitors:
- It is essential for every business organization to identify its existing competitors through their skill, strength and as well as weakness. We have huge number of existing competitors but most of them have not high skill and future orientation. The future competitors can easily entre the business because of its low cost and its industry structure is very easy.
- Price system:
- Pricing is most important factor in any kind of business. But in food business, it becomes more crucial factor. Most of our businesses fail to set proper pricing.
We will consider this factor securely. Our farm will provide chicken and eggs with affordable price.
- Market plan & Marketing strategy:
- We use new processing options which can differentiate our product from the products of others.
- We ensure quality product with affordable price.
- We always search for new quality factors related to our products that customers wish to see in the product.
- Provide hygienic and nutritious feeding that may help to attain distinguishable quality factors like color and test of meat.
Pricing:
Pricing is the most important factor for this business to compete with competitors to sustain in the market. Our pricing method is simple. We only sale product with a limited profit that means our sales price is our cost-plus limited profit. We also provide price discount on a bulk amount of product. We also offer different types of price and product discount in different types of festival.
Promotion:
To make the people know about business every company need promotion. Big companies spend a large proportion of their budget for promotion. We also have some promotional strategy- advertising, banner, billboard, leaflet, poster etc. we will give advertising in different newspaper and magazine in our country. We give billboard in some important hub of the settlement city. We will also provide leaflet, poster, and banner so that people can easily know about our business.
Distribution channel:
We are not going to use any distribution channel at first. We will use personal sales representative for selling our product. Our sales representatives will directly go to our customers and collect the order. As per their order we will directly supply chickens and eggs to the customers by our own transportation.
Manufacturing and operations:
- Facilities and location:
- We always try to give high facility to our customers. For quickly serve of our customers we have a farm and warehouse in the town next to our settlement. We also have an office for quick access with the customers. For making customers order easy we also have a email address, so that customers can order us easily. We are going to introduce own website for customers convenience. We moreover supply our product (chicken and Egg) to the customers by own transport system with full responsibility.
- Inventory management:
- Our main inventory is chicken and eggs. First of all, we will buy chicken and eggs from different areas around us especially from well-known competitors and put it into our farm and warehouse. Then we will clean the dust from eggs and test the chicken’s health that means we ensure that chickens are not affected by any harmful disease. Then we supply the chickens and eggs to different restaurant, super shop, hotel, community center, and bakery house as per their order.
- Human resource:
- In business human resources is one of the most important factors and have a big role in a business organization. For collect inventory, maintaining inventory, and reached the product to the desired customers we will have to need some people. They will very skillful on their own field. If additional skill and efficiency needed, we will provide them training. We also supervise their work.
- Key personal:
- We will supervise different sectors of this business like- buying inventory (Chicken and eggs), marketing, and finance etc. We will do this on the basis of our knowledge and skill of that sector. As XXXXXX have a good knowledge on finance, so they will look after on financial factors.
- Investors:
- It’s a sole proprietorship business. So, I will fund the business all alone through personal savings, loans and borrowing.
Management role:
XXXXX will keep the books of all our expenses and income. Expense here means how much our cost of buying chickens and eggs, food, transportation, salary, different types of bill etc. We will keep the book of all expense’s day by day with exact date. She will also look after on all marketing and distribution system. We will make known to the customers about our product and additional services we will provide. How we will reach the product to our customers etc. XXXXX will emphasize on buying and managing chickens and eggs. From where we will buy chickens and eggs, where it will be kept, food and health of chicken will be managed by him.
Conclusion:
Now poultry business is a very popular business in Nigeria. Because it is very easy and very small amount is need to start the business. Although there have many existing competitors in the market, but there has a high chance to succeed because existing competitors aren’t able to fulfill the customer’s demand. They are also failing to meet the customers need in the perspective of service. So, we think that choosing this business is our right decision.
Chicken and egg marketing: Insights from traders in Local Markets
Chickens are the most popular poultry species used for meat and egg production in Nigeria. XXXXXX, a LIVES intervention area in Owode Yewa, Ogun State, is known widely for its large chicken population (more than 100, 000). When asked why XXXXX is important in poultry production, locals’ response is that it’s because the Farm is large, has favorable climatic conditions for chicken production, and there are many maize and wheat growers whose products can serve as chicken feed.
Chicken rearing is part of the lifestyle of the communities of Owode, for poor and rich alike. XXXXX neighboring Quntus Farm Owode are famous for their high chicken production; the soil is fertile and there is a lot of fish by-products available which provide excellent chicken feed. Chickens from the associations are claimed to grow faster, maintain their body condition longer during transportation, resist diseases and have bigger and more attractive eggs than those elsewhere.
The availability of chicken feed in Nigeria makes chicken production and marketing an ideal venture in the area. The supply of day-old chicks from existing farmers and the introduction of exotic types through the extension service also contribute to the suitability of the area for the sector. Furthermore, farmers in the area seem to know about chicken production and marketing. The increased number of entrepreneurs in the sector, as compared to other areas, is a good indicator.
Women are also active participants in chicken and egg trading in the market. In the early times, women are not involved in poultry chicken eggs sales but now they took over 80% of the egg sales business and even have stores and warehouse for it other than the farmers
Though the chicken and egg value chain in the country is well developed, there is still a lot be done, especially with regard to planning production and marketing at different seasons. The common trend is for farmers to bring chickens and eggs on market days before holidays when supply tends to be high and demand is low. In such cases, it is only the wholesalers that benefit as they have plenty to choose from and they can set the prices. This results in losses for farmers as well as for local traders.
The LIVES project can contribute here by developing capacities and knowledge of farmers and traders on production and marketing strategies as well as by creating linkages with potential customers and market information sources.
Profile on Poultry Farming
This profile envisages the establishment of a farm for the rearing of poultry with raising capacity of 100,000 heads of poultry per annum. Poultry meat and eggs have become the most important sources of protein in the human diet by using it directly or after passing through food processing industries.
The major inputs and auxiliary raw materials required are day old chickens, commercial formula feed, and high-quality vaccines.
The present unsatisfied demand for poultry meat and eggs in is estimated at 7,750 tons and 5,410 tons respectively. The demand is expected to reach at 7,845 tons and 11,238 tons for eggs and poultry meat respectively by the year 2020.
The total investment requirement is estimated at one million naira, out of which one hundred and twenty-five thousand naira is required for plant and machinery. The plant will create employment opportunities for 3 to 5 persons.
The project is financially viable with an internal rate of return (IRR) of 17.63% and a net present value (NPV) of N2.59 million, discounted at 8.5 %.
The poultry farm has a backward linkage effect on animal feed processing industries and a forward linkage effect on food processing industries. There is also a substantial export potential.
Improvements on farm in Nigeria
Improvements of practices on a poultry parent stock farm annex hatchery have been made in Nigeria. The requesting party wanted to have further advice on good poultry keeping in such a way that it could improve its practices and to arrive at a well-managed and well operating company. The expert has, in two visits, left recommendations on the management structure of the company, on the construction of new facilities, on the daily activities in the parent stock units and in the hatchery. Special attention has been given to lighting-schemes and feeding of the cocks and hens in the parent stock.
Poultry farming is usually the business i recommend for retirees and individuals who are passionate about livestock farming. In the past, people were non-challant about breeding birds or cultivating crops for profits. But with the recent global burst in population and a worldwide demand for food, people are now beginning to realize the potential of providing the most important basic need of man.
Poultry farming is a viable business anytime any day; and to be sincere with you, it’s a business I have been considering for some time now. Below are reasons why I consider poultry farming a profitable business?
Factors that make Poultry Farming a Profitable Business
There are a lot of factors that make poultry farming business a profitable one but I will be highlighting only three major factors:
Food is one of the basic needs of man. Regardless of the economic situation, human beings must feed and since domestic birds are consumable; that makes poultry farming feasible.
My country Nigeria for instance has a population of over 150million and growing; bear it in mind that a huge population means a huge demand for food (egg and meat).
With the increased awareness on the health implications of red meat; there’s an increased demand for white meat and birds are a source of white meat.
But before I go into the details of starting a poultry farming business, I want to emphatically state that the information provided in this article does not in any way replace the need for you to conduct a feasibility study, write a business plan for your poultry farm and do your own due diligence.
Select your Poultry Niche
The poultry industry is a broad niche. There are many sub-sectors in the poultry industry which you can tap into. When poultry farming is mentioned, a lot of people take that to mean chicken rearing or turkey rearing alone but poultry farming is a very wide business with different aspects. Below are niches in the poultry business:
- Egg production (Layers breeding)
- Meat production (Broilers breeding)
- Chicken breeding (Hatchery)
- Poultry feed production
- Poultry equipment manufacturing
- Egg and meat processing, packaging and marketing
- Poultry marketing and consultancy
So, you see that poultry farming is very wide. Therefore, you have to choose your area of specialization. Of course, if you have enough capital and the technical know-how nothing stops you from doing all the businesses under poultry farming but it is always better to go back to the drawing board, find out which aspects of poultry farming are more profitable in your area in terms of demand and income and then select the most attractive aspects to concentrate on.
What type of bird will you be focusing on?
Another important factor to consider is the type of birds you wish to rear. There are several types of birds that you can rear. Poultry farming can further be classified into the types of birds:
- Domestic fowl or Chicken (Broilers and layers)
- Turkey
- Guinea fowl
- Pigeon
- Duck
- Goose
- Peacock
- Quail
You also have to decide on whether you want to rear layers or broilers. Layers are usually raised mainly for laying eggs so if egg production is your area of specialization, you would need to stock your farm with layers but if you prefer to opt for meat production instead, then you would need broilers instead because broilers have the ability to grow very fat and gives more return on investment because they weigh a lot more than other breeds. But for this article, I will be focusing on poultry breeding for egg and meat purposes with respect to the domestic fowl.
Start-up Capital Investment
The poultry farming business is capital intensive; depending on the scale, location of your farm and the type of management technology used. A small-scale poultry farm being run behind your house may require a capital of between $500 – $1,500. A medium scale poultry farm may require $2,000 – $5,000 and a large-scale poultry farm may require a start-up capital of $10,000 and above. Like I stated earlier, scale is directly proportional to capital.
Poultry Location
A good location is vital to the success and profitability of your poultry farm. An ideal poultry farm should be sited where there’s a large availability of cheap land and at the same time; should be close to areas with high population density. It’s not advisable to site your poultry farm within a residential area because of the offensive odour it produces.
While it is smart to start your poultry farm in a place where the odor and noise would not disturb other people, you should also consider the security factor. Lands in sparsely populated settlements are cheap and you would have fewer issues with community disturbance and zoning but it may be far from your market and buyers. You need to find a balance, look for a place that is favorable to you and would also be favorable to your customers at the same time.
Housing your birds
Another important factor to consider is the poultry housing system. Poultry housing system determines up to 40% of the rate of success you would achieve in poultry farming. A good housing system is very important for your poultry farm. The housing system commonly used in poultry farming are-:
- Extensive system: Range and fold unit
- Semi Intensive system: Standard semi-intensive unit and straw yard
- Intensive system: i. Deep litter, ii. Wire and slated floor, iii. Straw yard, iv. Battery cage
- Free Range System-: Under free range poultry farming system, chickens are allowed to roam around on their own in search for food. This system cannot be used for commercial poultry farming because of the high level of risks involved.
- Deep Litter System-: This system involves spreading wood shavings or saw dust on a concrete ground with the chickens placed on the floor and the dust serving as a ‘cushion’ for them. The dust is changed regularly, either by removing and replacing or by layering. Deep litter system is used by a lot of poultry farmers because it increases efficiency and makes it easier to manage large flocks of birds but it allows for a faster spread of diseases when there is an outbreak and also makes it difficult to fish out unproductive birds.
- Battery Cage System-: As for the battery cage system, metal cages are constructed inside a building to house the birds. The cages are usually split into different compartments to house small groups of birds. The cages also contain feeding and water troughs as well as laying nests. Bird droppings fall on the floor and are cleaned mechanically by a scraper. This method is considered to be the most effective for egg production but the major downside of this method is that it is more expensive to construct and maintain compared to other forms of poultry housing systems.
If you are running a poultry farm for commercial purposes and you intend getting the best out of the business; with respect to high birds’ productivity and efficiency. Then you should consider housing your birds using the intensive system. Note that each of the three-housing system has its own advantages and disadvantages. Lastly, your poultry housing structure should be built at a particular angle; taking sunlight and wind into consideration.
Poultry equipment and appliances
There is a very long list of equipment and facilities to put in place in order to fully manage a poultry farm. You would need to construct a house for the birds, provide feeders and drinkers, a good waste disposal system, source of water, lightening and heat, egg crates and storage space for keeping feed and eggs.
Therefore, you should make a list of all the items you would need, find out the prices and compare different prices to further give you an idea of the costs of setting up the poultry farm. The following equipment may be needed for your poultry farm and their uses:
- Feeders
- Drinkers
- Perches
- Nests
- Crates
- Lighting system
- Waste disposal system
- Incubator
- Heaters or brooders
- Egg tray
- Cages and coops
Feeding your birds-: Feeding is a major aspect of poultry farming. In fact, about 70% of your expenses would go towards poultry feeding. Therefore, it is imperative to figure out the feeding aspects of business before you go into it. There are two ways to go about feeding in poultry farming:
Producing your feeds by yourself
Buying already-made poultry feeds
I recommend the former for large commercial poultry farms because it helps you to save a lot of money on feeding costs. You can easily learn how to make poultry feeds, purchase equipment and start producing feeds for your farm. You can even make some extra income for yourself by selling to others but it is important that you get the right feed formula and ingredients that would enhance the growth of your birds.
Poultry Farm staffing and manpower
Operating a poultry farm is not labor intensive if the use of technology is employed. With respect to staffing, the number of manpower needed is also dependent on the size of your farm. But someone should be admin officer or manager; who will oversee the day to day running of your business. Your manager can also double as your accountant to cut down cost.
It is also advisable you have personnel who will reside permanently in the farm to monitor and see to the well-being of your birds. You will also need security personnel that will monitor the inflow and outflow of people around your farm; and most importantly, guard against theft. Aside these few mentioned, you can add more personnel to suit your business needs.
- Accounting-: I mentioned in one of my previous articles how a lot of poultry farmers take the accounting and record keeping aspects of their business for granted. Poultry farming is just like any other commercial business out there and for you to track your performance and productivity, adequate records must be kept. You don’t need to have an accounting background or spend hours on record keeping or accounting for your farm; just purchase a farm management software, install it on your computer and there you are, you would be able to know how your business is doing and whether you are growing or not.
- Health-: Just like you need regular health check-up to stay in good shape, the birds in your farm also need regular check-up. They need proper vaccines and medications to prevent diseases and promote growth. You should have a consultant, a veterinary doctor who would be in charge of giving vaccinations and providing proper health care for the birds.
- Marketing-: Another factor to give consideration to is the marketing aspect of your poultry business. You have to find a way to reach your customers and this would be done by employing the right marketing techniques. Therefore, before you start a poultry business, you should really consider the marketing strategies which you would use to break into the market.
Projected return on investment
The incubation period of the domestic fowl is 21 days. You can start selling off your birds as early as 8 – 12 weeks but full maturity is reached between 20 – 24 weeks. The payback period of a poultry farming business is between 3 – 5 years.
Five Challenges of Starting a Poultry Farming Business
Poultry farming business is one of the most important and profitable aspect of livestock farming business especially in Nigeria. But like every other business, there are risks and challenges involved. Do you intend venturing into poultry farming but you would like to know the risks and challenges that you will be facing? Then i advice you read on.
Challenges of Starting a Poultry Farming Business
Poultry farming has a longer payback period
It is Labor intensive
Pests and predators can cause massive loss
Lack of support from the government
Taking a close look at Nigeria today, you will attest to the fact that the government shows little or no interest in livestock farming; let alone poultry farming. The government is more interested in the oil sector thereby not showing concern to poultry farming and this brings discouragement to the poultry farmers.
Even the assumed agricultural loan the government provided cannot be accessed because of the stringent conditions attached. The only visible effort of the government is the recent ban on the importation of live or frozen poultry birds. So if you are interested in starting a poultry farming business, then you must be prepared to go it alone without looking to the government for help.
High start-up capital
The very first factor you have to give serious consideration to is capital. Just like every other business, poultry farming needs sufficient and proper funding. This is because the amount of capital you have to invest has a lot to do with the level of success you would achieve in poultry farming. If you have enough capital, you would be able to put facilities that would increase your productivity in place.
You cannot do well as a livestock farmer, especially poultry farming when you don’t have enough fund. You need money to purchase a land for the farm, to construct and equip the farm, to hire and pay staff/laborers and also to feed and provide healthcare for your birds. Without proper funding, you will struggle to keep your business afloat but with enough capital; business is made easier. So, it is advisable that you do your financial analysis very well and ensure you have access to cash because nothing kills a business faster than lack of money.
Outbreak of diseases
When the environment is dirty, disease and infection is inevitable. Birds like chicken are very sensitive to environmental changes. If the poultry environment is not properly taken care of, the chickens will be exposed to diseases like bacterial infection. So as a poultry farmer, you must ensure that the poultry environment is kept clean and disinfected. You must avoid bringing in contaminated equipment, vehicle, and foot wears. Also, visitors should not be allowed into the poultry environment and ensure that you sterilize your hands before touching the birds.
Non availability and affordability of vaccines
In the agro-allied industry, especially poultry farming; this particular challenge affects the small-scale poultry farmers more because; unlike the industrial or commercial poultry farmers who can afford the vaccines, the small-scale poultry farmers can’t afford the vaccines.
Adulteration and high cost of poultry food
The price of poultry food is quite costly and birds consume a lot. So, most poultry farmers economize or ration the food given to the birds and this affects the output. Also, adulterated poultry food flooding the market is another challenge for poultry entrepreneurs. This is because the adulteration utters the necessary nutrients the birds need in order to grow well, thus making them unhealthy and reduces their immunity to diseases.
As a final note, i believe you have gotten a clue on the challenges you should expect as a poultry farmer and the best solutions to them. So, start now by creating a counter-strategy to tackle these challenges and success will be yours.
How to Be a Poultry Farmer
If you want to be a poultry farmer, you must decide what type. Another consideration is where you live, as most poultry farms are in the eastern portion of the U.S. and California. Poultry farmers typically raise a single type of poultry, such as chickens, turkeys, geese or ducks. More than half of the poultry farming industry raises chickens for broilers. The two other main types of poultry farming produce chicken eggs and turkeys. Some poultry farmers raise chicks into egg-laying hens or breeders. Once you have determined that type of poultry farmer you want to be, you need to get a job working on that type of farm.
