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Poultry Farming Feasibility Study for Poultry Business Plan
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Download this comprehensive feasibility report for your poultry broilers and layers business for your
loan and grant requirements for NIRSAL, CBN, BOA, BOI. A Poultry Farming Feasibility Study is all you
need to start up your desired Poultry farming business.

WHY DO A FEASIBILITY REPORT FOR YOUR POULTRY FARM?

Investing large capital on a poultry business without a well-developed business plan and feasibility study
report is equal to putting the amount invested in jeopardy. Business plans and Feasibility study Reports
sets you on the track for making a maximum profit in the business.

This Poultry Farming Feasibility Study for your business plan is a sample that has been put together by
Mr Bidemi, an expert in business plans writing and consultant for many agribusinesses.

1.0. Executive Summary Poultry Farming Feasibility Study

Feasibility Study on the establishment of a poultry farm is based on the survey made by the writer of
this report. The name of the poultry farm will be named BIDEX BIRD FARMS and will concentrate on
sales of eggs and table meat bird.

We will be the supplier of birds and eggs to a different quick-service restaurant in South-West Nigeria
and our vision is to be one of the main poultry farm product supplier in Nigeria aiming to raise healthy
birds and in turn, promote wellness passively.

The research carried out made it obvious that the demand for poultry meat and eggs are not fully met in
some areas of Ilorin, though they are operating around Ilorin, the poultry farm will be sited at Eyenkorin
an area on the outskirts of the town. These legal requirements for the establishment of this venture
such as local government revenue (tax) per month and security payment (vigilante) per month have
been inquired and will be carefully complied with.

The venture will help in creating employment to the locals, especially as part-time in its early stages then
will offer full-time jobs when it attains a certain milestone, meeting the demand of eggs and making the
price affordable in future, BIDEX BIRD FARMS intends to develop into other poultry farming structures
such as turkey, duck, guinea fowl and quail.

2.0. POULTRY STRATEGY AND IMPLEMENTATION SUMMARY OBJECTIVE

Firstly, to increase the number of our client by 20% in the first 2 years of operation. Secondly, to
evaluate and add new tactics, if need be, to our strategic marketing quarterly. Lastly, to keep and
maintain hygienic farms for healthy eggs and birds which will, in turn, promote the wellness of the
consumers
3.0. POULTRY TACTICS AND STRATEGY IMPACTS
BIDEX BIRD FARMS products will be priced at a rate where customers would be assured they will obtain
quality at a price that is friendly for their pocket. When markup is placed on any of our products,
customers will be willing to pay because of the affordable price and quality.

The venture to be established is a poultry farm that will concentrate on the production of eggs and sales
of broilers, birds because of the fund required the business will start as a small scale business having the
locality surrounding the Eyenkorin area as a target market. The farm site will be a permanent land and
will need necessary equipment for its operation as it is an entirely new firm to start from scratch.

3.0. OPERATIONAL PLAN ON POULTRY

The firm will be a commercial poultry farm; therefore it will require full-time labour and aims for
productivity on a scale for the sales of egg and sales of broiler birds.

For egg production, birds usually start to lay at 18-22 weeks of age and continue laying for a period of
twelve months (52weeks) on average laying fewer eggs as the new mounting period. The typical
production cycle lapses after about 17 months (72 weeks) and involves three district phases as follows:

PHASE 1 (PULLETS OR BROILERS): This phrase last from 0 – 8 weeks during which small chicks (pullets)
are kept separately from broilers.

PHASE 2 (GROWERS): This period concerned is between 8 – 21 weeks of age. Growers are the future
laying birds and the way they grow up will largely determine how well they do in the laying house.
Therefore the care and management taken during this phase, the growing period is very important to
the quality of stock.

PHASE 3 (LAYERS): The laying period is perceived to hve commenced when the birds reach 5% egg
production on a daily basis. The laying period continues until the birds are sold at the end of a laying
period of normal length or are force mounted Housing time starts with the beginning of the laying
period. The number of birds housed is the number of pullet in the laying house when egg production
starts.

4.0. MARKET ANALYSIS ON POULTRY

Most meals in Nigeria is not complete without poultry output like egg or meat. Nigeria has over 170
million growing population that demands meat or egg on a daily basis. With increasing awareness on the
adverse effects of red meat on health, they seek to satisfy their need for meat with white meat thus
increasing the demand for poultry and certain livestock which are a source of white meat.

5.0. POULTRY MARKETING STRATEGY

Our target markets are the restaurants and households around the Eyenkorin axis in Ilorin, awareness
will be made by means of advertisement. The advertisement will be made on flyers, handbills, and one-
on-one marketing will be done to eateries, restaurants and companies that need our product for the
flow of their operations. Our major market aggression will be supplied to local markets makers of cake
and ice cream, local restaurants and hotels around that axis.
6.0. MARKETING
Marketing activities include among other grading quality, promotions, packaging and addition of value,
these activities are essentials as they will generate a large volume of sales of product quickly as possible
because resulting to increase of income.

7.0. GRADING
Eggs should be graded by size and labelled according to its weight. During selection and grading, care
must be applied to ensure that weight is uniformed to avoid criticism and rejection from customers.

8.0. POULTRY BUSINESS EVALUATION OF FARM/FINANCE

This evaluation is based on birds i.e. layers and broilers Layers are those birds that lay eggs while broilers
don’t lay an egg. This evaluation will be based on 5% normal loss i.e. at the process of taking care of the
day-old chicks; it is possible to lose 5% of the birds to sickness. Therefore if we start with 1000 birds, it is
possible for us to lose 50 birds at the process of rearing them. While broilers if we start with 400 birds it
is possible for us to loss 20 birds to diseases at the process of rearing them.

LAYERS
The timeframe for a layer to commence its laying is 18 weeks, if we start with 1000 birds and we loss 5-
10% of it so we have 950-900 surviving layers and with proper management of feeding and other
maintenance of the bird it is possible to get 90% egg production that is 855 per day and 5985 pieces of
egg every week. If we loss 1% of the egg that is 60 pieces every week so we have 5925 pieces p/weeks.
197 crates of eggs every week and crate of egg is sold accordingly to its size. Small size N500, Medium
N600, Big size N700. Assuming we use medium size, that is N600 which result to N118500 sales of egg
every week.
After laying eggs for 52 weeks (12months) we dispose the layer and it will be sold at the rate of N700 per
layers

Therefore, before changing the stock we might have made N6,162,000 from sales of eggs and N665,000
from the disposal of old layers making a sum total of N6,827,000 for the period of 52 weeks (one year)

layers 1000 1000 1000

mortality 950 950 950
Eggs 75% daily 713 713 713
Weekly 4,991 4,991 4,991
monthly 20,677 20,677 20,677
Provision 1% 205 205 205
Net monthly 20,470 20,470 20,470
Revenue for 12 month
unit per month Unit Total
cost
Small 20,470 (682 crates) 600 4,910,400
Medium 20,470 (682 crates) 700 5,728,800
Big size 20,470 (682 crates) 800 6,547,200
Old layers 950 1,200 1,140,000 1,140,000 1,140,000
manure 200 104,000 104,000 104,000
 7,791,200 6,154,400 6,972,800

BROILERS
Broilers do not lay eggs but grows to table size when they are from 8 weeks old upward. The projected
number for the amount of broilers are 400 birds and if we have 380 surviving birds sold at the rate of
N1,500 each, making a total sales of N570,000 for the period of rearing the broilers. Making it total sales
of (570,000 x 3) N1,710,000 for period of 12 months. Total Sales expected for 12 months.

Project Report for 1000 Number Layers Birds

Economic Parameters:
1 No. of birds 1000
2 Cost of construction of sheds 200
3 Cost of equipments 15
4 Cost of day old chicks 1300
5 Feed requirement per bird 90gms
6 Average cost of feed 21
7 Weight on selling 2 per bird
8 Selling price of birds 67 kgs
9 Mortality rate 10% kgs
10 Income from manure 200 for 56 weeks 10bags per week
11 Interest rate
12 Depreciation of building and equipments 10% building 5% machinery
13 Total time for repayments 4
14 Beneficiaries contribution to project 20%
15 No. of batches reared per cycle 1 ½ year from POL i.e 72-16 weeks
a) First year 100%
2) Second year 50% increase onwards
16 Labour 200 per day
17 Medicine cost per bird 5
Expenditure on purchase of chicks, insurance, feed, cost of sheds and equipment is admissible.
Expenditure on cost of land or other buildings is not admissible.

Start-up and Cost for 1,000 layers

1 plots of land Unit cost 500,000
Block 1000 piece @ 110 110,000
Cement 30 bags @ N1800 54,000
Cement Carriage 3,000
Woods 151,500
Roofing slate 126,000
Roofing sheet 25,000
Ceiling Slate 15,000
Reggie’s 7,500
Nails 12,000
Iron door 43,000
Net 10 bundles @ N4000 40,000
Stone Big 1 tipper @ N25,000 25,000
Sharp sand (Mayans) 20,000
Soft Sand 20,000
Total cost of building 1,152,000
Tool
Feeders 30@ 550 16,500
Drinkers 7 pieces @ 2500 17,500
Shovel & Head pan 2,000
Thermometer (Digital) 8,000
Scale (Digital) 10,000
Geepee Tank 1500litres 23,000
Geepee Tank 500litres 10,000
Expenditure on water supply 30,000
117,000
WORKMANSHIP
Carpenter 65,000
Bricklayer 80,000
Miscellaneous 100,000
Installation of electricity 20,000
265,000
Total 1,534,000

Recurring Expenditure
1000 POL @ 1300 per chick 1,300,000

Feeds, Vaccines & up keeps per kg 580,000

Labour cost for 3 months per month 18,000

Total
Total Project Cost: 3,432,000
Bank loan 80% 2,745,600
Beneficiary's Contribution 20% 686,400

Income and Expenditure

Particulars Y1 Y2 Y3 Y4
Expenditure
Capital Cost 1,534,000
Recurring Cost
Cost of chicks 1,300,000 1,950,000 1,950,000 1,950,000
Cost of feed 5,151,400 7,727,100 7,727,100 7,727,100
Medicine 100,000 150,000 150,000 150,000
Labour Cost 78,400 78,400 78,400 78,400
 Total Expenditure 8,163,800 9,905,500 9,905,500 9,905,500

Income
Sale of birds 1,140,000 1,710,000 1,710,000 1,710,000
Eggs 6,547,200 9,820,800 9,820,800 9,820,800
Sale of manure 112,000 168,000 168,000 168,000
Sale of gunny bags 11,200 16,800 16,800 16,800
Depreciation
Building 153,400 230,100 230,100 230,100
Equipments 5,850 8,775 8,775 8,775
Total Income 7,969,650 11,954,475 11,954,475 11,954,475

Cash Flow and financial analysis

Particulars Y1 Y2 Y3 Y4
Outstanding 2,745,600
Recurring Cost 8,163,800 9,905,500 9,905,500 9,905,500
Total Cost 10,909,400 9,905,500 9,905,500 9,905,500
Total income 7,969,650 11,954,475 11,954,475 11,954,475
Gross Profit (2,939,750) 2,048,975 2,048,975 2,048,975

Repayment Schedule
Particulars Y1 Y2 Y3 Y4
Loan 2,745,600
Loan Outstanding 2,745,600
Service cost 150,000 150,000 150,000 150,000
Repayment Principal 915,200 915,200 915,200
Repayment Total 150,000 1,065,200 1,065,200 1,065,200
Gross Surplus (2,939,750) 2,048,975 2,048,975 2,048,975
Net surplus (2,789,750) 983,775 983,775 983,775

Feeds 2
1 pullet feeds 90gms layer mash per day
POL is approx. to be 14-16 weeks old
Therefore 1000pullets feed 90gm × 1000pullet = 90,000gms
1000gms = 1kg
Therefore 90,000gms =90kgs
Layer mash is fed to chicken up to (week 72/ day504)
Laying start from 19 or 20 week
Therefore 20-14 = 6week difference before laying
6 weeks is approximately 45 days
Therefore 45days × 90kgs =4,050kgs
1bags = 25kgs which = N 3,500
4,050kgs = 162bags = N 567,000
Layer mash = N 567,000
The remaining feeding period 72-20weeks =52 weeks
Therefore 52weeks is approximately 364 days
Therefore 364days × 90kgs =32,760kgs
1bags = 25kgs which = N 3,500
32,760kgs = 1,310bags = N2,469,600
Layer mash = N4,584,400

For layers during egg production, the expenses are half of the sales of egg will go in for feeds and other
operational expenses i.e 72-20=52 weeks

Brooding Programmes:-
Attached to this is a brooding programme that should be religiously followed figure 1.2 from day 1 to
week 16
Days Items weeks Items
1 1/0 and or Maresk Vaccination 3 or 4 2nd Gumboro Vaccination
1 Glucose 4 or 5 2nd Lasota
2-5 Antibiotics + Vitamins 6 Fowl pox Vaccination
6-8 Coccidiostat 8 Kumarov Vaccination
9 Plain Water 9 De-worming
10 Gumboro (IBDV) Vaccination 12-13 De-beaking
10-12 Vitamins 16 2nd Kumarov Vaccination
13 Plain Water
14 Lasota (NCD) Vaccination
14-16 Vitamins
From the last Kumarov Vaccination repeat NDC (lasota) Vaccination as a booster dose every 6-
8 weeks with de-worming throughout the life of the birds
For vaccination the standard price for each bird is N5 per week,(Gumboro and Lasota only) for
1000= N 5000 per week. For four weeks= N 5,500 *4= N 22,000.
Some necessary vaccination for layers
koromorov at 6weeks= N 750 for 100 birds = N4,125
Fowl pox at 8 weeks N 700 per 100 dose. = N4,125
Deworming at 10 weeks N 450
Debeaking at 12 weeks N 20 per bird= N 11,000

Komorov at 16 weeks N 750 per 100 dose= N 7500

Vitamins @5000
Lasota (NCD) Vaccination @ N5 per week
De-worming N 450

Total cost for vaccination =

SUMMARY
Capital expenses N1,781,700
Operational expenses N1,570,000
TOTAL EXPENSES – N3,351,700

TOTAL SALES FOR PERIOD OF 12 MONTHS

Layers N6,162,000
Broilers N1,710,000
TOTAL – N7,872,000

PROFIT = SALES – EXPENSES

For layers during egg production, the expenses are half of the sales of egg will go in for feeds and other
operational expenses. i.e. N6,162,000 divided by 2 = 3,081,000

For broiler, the cost of production till the birds reaches table size before a disposition is between N900
to N1000. So, therefore, lets put the benchmark to N1000. If N1140 broiler is sold at the rate of N1500
1,710,000 – N1140,000 = N570,000
The profit of layers for a period of 12 months = N3,081,000
The profit of broilers for a period of 12 months = N570,000
Total profit = N3,081,000 for layer N571,000 for broiler N3,651,000

USING PAYBACK PERIOD

This method talks about the number of periods that an investment project will pay back the amount
invested. It usually shows the number of years it would take an investor to recover the initial cost of
investment from the expected streams of cash flows. The payback period can be calculated as thus
PBP = Total Profit – Initial Capital

Using the Payback Period of loan generating a profit of N3,651,000, 2 years and 8 months.
2) Executive Summary: The summary includes introduction, products and services description,
marketing and sales among others

3) Company Overview: this includes

a. Mission Statement

b. History and Current Status

c. Markets and Products

d. Objectives

e. Keys to success

4) Product or Service description: Where I describe the different poultry products which include
chicken, eggs and waste.
5) Industry and Market Analysis

a. Introduction

b. Industry analysis

c. Market analysis

d. Customer analysis

e. Competitor analysis

f. SWOT Analysis

6) Marketing Strategy

a. Target Market Strategy

b. Product/Service Strategy

c. Pricing Strategy

d. Distribution Strategy

e. Advertising and Promotion Strategy

f. Sales Strategy

g. Marketing and saleS Forecasts

7) Operations

a. Operations Strategy

b. Scope of Operations

c. Operating Expenses

8) Development

a. Development Strategy

b. Development Timeline

c. Development Expenses

9) Management
a. Company Organization

b. Management Team

c. Administrative Expenses

10) Summary of Financials

a. Financial Assumptions

b. Financial Forecasts

i. Projected Cash Flow

ii. Income statement

iii. Balance sheet

iv. Profit and loss

v. Profit Margin, chart etc

c. Financial Risks

11) Appendices

Support for Product/Service Description (e.g., diagrams, pictures, etc.)

Financial Statements

· Income Statement [3 years]

· Balance Sheets [3 years]

· Cash Flow Statements [3 years]

· Ratio Analysis [3 years]

· Other supporting financial statements

What is the cost of the Poultry