Poultry Form

POULTRY FARM START-UP
INTRODUCTION
Business Plan
Definition.
A business plan is a document that defines in detail a company's objectives and how it
plans to achieve its goals. A business plan lays out a written road map for the firm
from marketing, financial, and operational standpoints. Both startups and established
companies use business plans.
A business plan is an important document aimed at a company's external and internal
audiences. For instance, a business plan is used to attract investment before a
company has established a proven track record. It can also help to secure lending
from financial institutions.
Features
• A business plan is a document describing a company's core business activities and
how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside
investors.
• A business plan can also be used as an internal guide to keep an executive team
focused on and working toward short- and long-term objectives.
• Businesses may create a lengthier traditional business plan or a shorter lean startup
business plan.
How to Write a Business Plan
A well-considered and well-written business plan can be of enormous value to a
company. While there are templates that you can use to write a business plan, try to
avoid producing a generic result. The plan should include an overview and, if
possible, details of the industry of which the business will be a part. It should explain
how the business will distinguish itself from its competitors.Traditional business
plans use some combination of the sections below. Your plan might also include any
funding requests you're making. Regardless, try to keep the main body of your plan to
around 15-25 pages.
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• Executive summary: This section outlines the company and includes the
mission statement along with any information about the company's leadership,
employees, operations, and location.
• Products and services: Here, the company can outline the products and
services it will offer, and may also include pricing, product lifespan, and
benefits to the consumer. Other factors that may go into this section include
production and manufacturing processes, any patents the company may have,
as well as proprietary technology. Information about research and
development (R&D) can also be included here.
• Market analysis: A firm needs a good handle on its industry as well as its
target market. This section of the plan will detail a company's competition and
how the company fits in the industry, along with its relative strengths and
weaknesses. It will also describe the expected consumer demand for a
company's products or services and how easy or difficult it may be to grab
market share from incumbents.
Types of Business Plans
Business plans help companies identify their objectives and remain on track to meet
goals. They can help companies start, manage themselves, and grow once up and
running. They also act as a means to attract lenders and investors.
Although there is no right or wrong business plan, they can fall into two different
categories—traditional or lean startup. According to the Small Business
Administration (SBA), the traditional business plan is the most common.1 It contains
a lot of detail in each section. These tend to be longer than the lean startup plan and
require more work.
Financial Projections
A complete business plan must include a set of financial projections for the business.
These forward-looking financial statements are often called pro-forma financial
statements or simply the "pro-formas." They include an overall budget, current and
projected financing needs, a market analysis, and the company's marketing strategy.
Other Considerations for a Business Plan
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A major reason for a business plan is to give owners a clear picture of objectives,
goals, resources, potential costs, and drawbacks of certain business decisions.
Importantly, a business plan shouldn't be a static document. As a business grows and
changes, so too should the business plan. An annual review of the company and its
plan allows an entrepreneur or group of owners to update the plan, based on
successes, setbacks, and other new information.
What Is a Business Plan?
Tips for Starting Your Small Business
Follow these steps to get your small-scale business up and running:
• Hone your idea. Before you start offering services, you need to determine
what you’ll sell. You can do that by evaluating your skills. Make a list of what
you can do, what you’re not willing to do, how much time you have to build
and grow your business
• Define the goals for your business. Ask yourself why you want to start a
small business and what you’re hoping to accomplish. Is it to work and make
money from home? Is it to quit your full-time job and spend more time with
your family
• Establish your prices. This is where you determine how much you’ll charge
your customers. You may choose to bill hourly for services delivered, like
consulting or babysitting, or on a per-product basis, like selling artwork on
Easy.
• Set up your business finances. You’ll need a business bank account and
invoicing system. You can start with a simple Excel spreadsheet and PayPal,
but you might consider moving to a system like FreshBooks as your business
grows.
• Come up with a marketing plan. You’ll need a strategy to promote your
business online and off. You can use a site like Moo to create professional
business cards for in-person marketing. Online marketing strategies might
include creating a website, setting up a Google Business page, or leveraging
social media like Face book, LinkedIn, and Twitter..
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Purposes of a Business Plan
Chances are, someone drafting a business plan will be doing so for one or
more of the following reasons:
1. Securing financing from investors
.Nce its contents revolve around how businesses succeed, break-even, and turn a
profit, a business plan is used as a tool for sourcing capital. This document is an
entrepreneur's way of showing potential investors or lenders how their capital
will be put to work and how it will help the business thrive.
2. Documenting a company's strategy and goals.
A business plan should leave no stone unturned.
Business plans can span dozens or even hundreds of pages, affording their
drafters the opportunity to explain what a business' goals are and how the
business will achieve them.
3. Legitimizing a business idea
Everyone's got a great idea for a company – until they put pen to paper and
realize that it's not exactly feasible.A business plan is an aspiring entrepreneur's
way to prove that a business idea is actually worth pursuing.
4. Getting an A in your business class.
Speaking from personal experience, there's a chance you're here to get

business plan ideas for your Business 101 class project.
If that's the case, might we suggest checking out this post on How to Write a
Business Plan – providing a section-by-section guide on creating your plan?
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What does a business plan to include?
• Business Plan Subtitle

• Executive Summary
• Company Description
• The Business Opportunity
• Competitive Analysis
• Target Market
• Marketing Plan
• Financial Summary
• Team
• Funding Requirements
1. Business Plan Subtitle
Every great business plan starts with a captivating title and subtitle. You’ll
want to make it clear that the document is, in fact, a business plan, but the
subtitle can help tell the story of your business in just a short sentence.
2. Executive Summary
Although this is the last part of the business plan that you’ll write, it’s the first
section (and maybe the only section) that stakeholders will read. The
executive summary of a business plan sets the stage for the rest of the
document. It includes your company’s mission or vision statement, value
proposition, and long-term goals.
3.Company Description
This brief part of your business plan will detail your business name, years in
operation, key offerings, and positioning statement. You might even add core
values or a short history of the company.
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4. The Business Opportunity
The business opportunity should convince investors that your organization

meets the needs of the market in a way that no other company can. This
section explains the specific problem your business solves within the
marketplace and how it solves them.
5. Competitive Analysis
Just about every industry has more than one player in the market. Even if your
business owns the majority of the market share in your industry or your
business concept is the first of its kind, you still have competition.
6. Target Market
Who are the core customers of your business and why? The target market
portion of your business plan outlines this in detail. The target market should
explain the demographics, psychographics, behavioristics, and geographics of
the ideal customer.
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POULTRY FARM
Introduction
Being an entrepreneur has always been a life-long dream for me. And in order to create a
business, it is important that one gets a good business plan which led to the idea of this
business plan as my thesis. A business plan is a document or a guide which outlines a
proposed business objective. My choice of business is poultry farming. It is right to ask the
question why I have chosen poultry farming. To production, what better business can be done
than poultry farming. With this, I have come to realize that this could be a business
opportunity. For the sake of clarity, poultry farming is the rearing of domesticated birds such
as chicken, duck, turkey and goose for meat or eggs. This livestock provides a high, cheap
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source of animal protein and Nigerians consume a high percentage of this source of protein.
The aim of the thesis is to develop my business plan for starting a poultry farm particularly
broilers in Nigeria. The objective is to create a guidebook that can be used to start a poultry
farm which includes step by step of everything it entails when planning to start a broilers
poultry business in Nigeria. Also, it will include how profitable this business is as well as
some of the potential challenges one could face while operating a poultry business in Nigeria.
However, this could serve as a guidance to anyone who wishes to establish their own
business.
As part of the theoretical framework of this thesis, there will be two parts. The first part will
be focused majorly on components of business plan. This will be achieved using existing
literature in the field as well as other relevant materials such as previous related projects,
numerous books, journals, and a host of reliable internet sources. The goal is to provide a
means to understand what a business plan means as well as the necessary component of a
professional business plan. In the second part, of the framework, I will be looking at the
actual business plan for the topic – poultry farming - which will consist of components such
as the executive summary, the start-up capital, the production plan, the marketing and
organization plan, and most importantly, the financial plan where I will analyse the goal of
the business – to make a profit
For the purpose of this research, it is pertinent to note that poultry farming in Nigeria can
generally be classified into two groups, subsistent and commercial. The commercial system
can be grouped into small, medium and large scale. With modern technology, this can be
differentiated simply by the number’s of birds involved. For instance, small to medium scale
business setup is where the number of birds involved ranges between 100 to 20,001 while the
large scale is 20,001 and more birds. However, majority of the poultry kept in Nigeria fall
under the subsistence system which has contributed to the reason why the country has not
been able to meet up with the demand of poultry products. Commercial poultry production
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EXECUTIVE SUMMARY
Poultry farming is one of the most lucrative agriculture business in Nigeria. Thousands of
poultry products are consumed everyday yet, the demand remains unclassifiable. Poultry
farming’s the second most considered sector which is under animal husbandry in agricultural
field. It is easy to run and requires less expenses, opportunities surrounding poultry farming
are exponential in highly profitable ways. We are in the commercial poultry farm and egg
production line of business because we want to focus on the vast opportunities available in
the agriculture industry, to contribute our quota ingrowing the Nigeria economy, in national
food production, and also to export chicken and eggs from the country to other countries and
above all, to make profit.
Farm, is well positioned to become one of the leading commercial poultry farms and egg
production business in Nigeria, which is why we have been able to source for the best hands
and machines to run the company with.
We have put process and strategies in place that will help us employ best practices when
incomes to commercial poultry farming. At the Mayberry Poultry Farms, our customers best
interest will always come first, and everything we do will be guided by our values and
professional ethics.
We will ensure that we hold ourselves accountable to the highest standards by meeting our
customers needs precisely and completely. We will cultivate a working environment that
provides a human, sustainable approach to earning a living, and living in our world, for our
partners, employees and for our customers
OBJECTIVES
1. Making availability of quality chicks. (Low input technology).
2. Diversification programme- emu, turkey, geese guinea fowl.
3. Strengthening of feed quality monitoring wing.
4. Training programme.
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Our mission And vision statement
• Our Vision is to become one of the leading commercial poultry farm and egg
production brands not just in Nigeria but also on the global stage.
• Our mission is to see our chickens and eggs sell in all areas of Nigeria and other
countries ofthe world.
SWOT ANALYSIS
1. STRENGTHS OF POULTRY FARM
• Lower risk:-If you’ve established a chicken poultry farm and you’re doing
everything by the book. Whether it’s feeding of chicken, keeping the environment
controlled, or following the farming regulation, then your chickens would be ready
for layers and broilers within 4 to 6 or 8 weeks depending on the feed.
• High-profit margin :-Poultry farming is one of the most profitable businesses in the
world. According to an estimate, it contributes more than 49 billion dollars annually
to the US economy.
• Limited competitors:-Poultry chicken farming isn’t a competitive industry. When
your product (chickens) is ready, then you can easily sell it in the market without
investing any capital on marketing and promotion every time.
• Not easy entry:-According to an estimate, the initial investment of starting a poultry
farm in the US market ranges from 75,000 dollars to 1 million dollars depending
upon the location, size, and various factors.
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2.WEAKNESS OF POULTRY FARM
• No flexible prices:-The prices of chicken are fixed and you can’t negotiate over the
price. Whatever price food and price regulatory authority set, you have to accept that
even if it doesn’t meet your expenses.
• High transportation cost:-The transportation cost of bringing the small chicks to the farm
and then distributing the final product to the stores, hotels, and local food markets is very
high. If the retail price is good, then it pays off all the expenses and generates revenue.
Otherwise, you have to pay it from your pocket.
• High initial investment:-It requires a plethora of capital to establish a well-

controlled poultry farm that could generate some revenue. It’s difficult to make a
profit from ordinary poultry farms. In fact, the failure rate is higher among the poultry
farms that don’t follow the controlled environment.
• No differentiation:-Your competitors are selling the same product (chickens)

whatever you’re selling. In other words, there’s no product differentiation in this
industry. It doesn’t give anyone a competitive edge over the other.
3.OPPORTUNITIES OF POULTRY FARM
• Sale of business:-The most interesting thing about the poultry farming business is
that it allows you to conveniently sell your business at the price to earnings ratio. For
instance, if your current earning and share price is good, then you can sell your
business at a much higher profit than your original investment.
• Wholesale distribution:-If your poultry farm’s production is growing, then you can
expand your business by becoming a wholesale distributor of chickens. It would
allow you to build relations with bigger hotels and supermarkets.
• Relevant products extension:-Most of the poultry farmers start with broilers. Later
they expand their portfolio by establishing layers and hatcheries to further diversify
their portfolio. It would strengthen farms’ position and minimize the risk factor.
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4.THREATS OF POULTRY FARM
• Increasing cost:-High rent, costly feed, high distribution, and transportation costs,
insurance, and other running, variable, and administrative costs make the overall
expenditure very high. It could bankrupt your entire business. Therefore, it’s
important to keep in mind various costs before investing your capital.
• Regulations:-Many animal welfare activists are working to pass legislation about the
better treatment of chicken on farms. It would further increase the cost.
• Bird flue:-Avian influenza or bird flu is a very deadly virus for chickens and it could
occur at crowded chicken farms. Once it breaks out, it could jeopardize your entire
livestock. Although it happens rarely, the risk of spread is there.
PRILIMINARI INVESTIGATION
This chapter includes business overview, the proposed business in question will be
introduced in terms of the location or site of the business, the business name which is Akin’s
Poultry, the owner and the promoters of the business. Akins poultry farm is a propose poultry
farm that is into the rearing and sale of chicken broilers both live and dressed chicken,
manure for crop farmers. It is intended to start operations by year 2021 with 1000-day old
chicken and increase as it grows Akins poultry farm will be located at 30 0ladipo Street Road
safety Oshogbo Osun state, target markets is (niche market). immediate environment,
household, restaurants hotels, event planners, the business is a limited liability company and
the promoter of the business is AKINTILEWA OMISAKIN, hails from Osun state which is
located in south west of Nigeria, the vision of the business is to become one of the biggest
and successful poultry farms in Osun state and its environments.
Estimated startup capital is ₦2,453 372.00 Naira (approximately €6,000.00). The business
will be financed with loan which amount to about 60% of the startup capital with a sales
turnover of ₦24,608 000.00 Naira (€61,062.03) gross profit of ₦14,765 756.00 Naira
(€36,639.59) and net profit of ₦13,967 862.10 Naira (€34,659.70).
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The business of poultry farm involves some risks which are outbreak of disease, flood,
inferior vaccine and fire outbreak. However, the intention is to reduce this risk by giving the
birds right proportion of vaccine as well as standard and quality vaccine which will be
purchase from a reliable supplier, we will locate our farm on a high land, we will maintain a
safety precaution policy by making fire extinguisher available in the farm.
• Description of the Business
The business is proposed to specialize in the rearing and sales of broiler and manure. The
proposed target market are families/households, restaurants, hotels, students, and event
planners. The mission is to improve on the existing quality of poultry product while
ensuring affordability and availability as well as to create an excellent customer
relationship.
The objectives are to achieve a sales turnover of approximately ₦24,600 000.00 Naira
(€60,000.00) a gross profit of ₦15,000 000.00 (€36,600.00) and a net profit after tax of
approximately ₦14,000 000.00Naira (€35,000.00) from two years of commencement of
operation. Another objective is to increase staff salary by 5% by the end of second year of
operation as well as to have a customer base of 4000 within the first year of operation and
increase to 10,000 before the end of third year in business
Water is an importance aspect of poultry farming. It is intended to provide water for the birds
through a water borehole system which should already be made available in the location and
ensure proper treatment to the water storage facilities. 1000 capacity poultry requires about
600 liters of water daily (Prabakaran 2003,11). Similarly, feed is important as well, a farm
may fail in the attempt to reduce cost of feeding.
• Current status of business
Akins poultry farm is a start-up business, and it is assumed that a space of about three plot
and half is available for construction of the poultry business as well as a borehole water
system. Similarly, it is required to have 40 percent of the startup capital which amount to
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₦981,348,00 in Naira and 2,435.11 in Euro is available. This business is proposed to

commence operation by 2021.
To start a poultry farm business in Nigeria, one must fulfill the following requirement,
business registration one must register with the Corporate Affairs Commission (CAC) in
Nigeria. Corporate Affairs Commission is a body of the Nigerian Government that is charged
with the responsibilities to regulate and manage companies in Nigeria. It was introduced in
1990 with the passing of the companies and allied matters act. It is headed by a chairman and
closely assisted by the registrar general/ CEO.
Local Government Food Permit and Business Permit, a food/business permit must be
obtained from the Environment Service Department where the poultry farm will be situated.
The poultry farm will be inspected by health officers for health and safety compliance. Once
the permit is approved, business operations can commence..
TABLE 1. Legal requirement. (Cooperate Affairs Commission 2012)
Legal Requirements Budget Details on Frequency of

Payment and other
Information
Corporate Affairs 20,000 (€49.62) Once

Registration
Local Govt. permit & 10,000 (€31.25) Yearly

licensing
The establishment of a poultry farm is a business which has a lot of implications on the
economy. The business will positively affect both the host community which could be a
primary source of labour as well as the economy of the nation at large. Below are some of the
effects which can be generated through the establishments of the business.
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Personal income and wealth, through provision of job for teeming population of unemployed
in thecountry, the business is bound to provide a reliable substantial means of income to the
employee. This will be ensured by a regular payment of salaries and wages to the workers.
Improve standard of living,by contributing to the domestic production of poultry production
locally, the multiplier effect is a boost.
IDEA GENERATION
SALES AND MARKETING STRATEGY
Also, in order for us to get the right pricing for our chicken and eggs, we ensure that we
choose a good location for commercial poultry farm, choose a good breed that will guarantee
bountiful harvest, cut the cost of running our poultry farm to the barest minimum and of try
as much as possible to attract buyers to our poultry farm as against taking our eggs and
chickens to the market to search for buyers; with this, we would have successfully eliminate
the cost of transporting the goods to the market.
OUR PRICING STRATEGY
Some of the factors that will help us sell our farm produce at the right price that will
guarantee that we make profits is dependent on our strategy, while some of the factors are
beyond our control. For example, if the climatic condition is unfavourable and if there is
natural disaster in the location where we have our commercial poultry farm, then it will
directly affect the prices of our chicken and eggs.
Also, in order for us to get the right pricing for our chicken and eggs, we ensure that we
choose a good location for commercial poultry farm, choose a good breed that will guarantee
bountiful harvest, cut the cost of running our poultry farm to the barest minimum and of try
as much as possible to attract buyers to our poultry farm as against taking our eggs and
chickens to the market to search for buyers; with this, we would have successfully eliminate
the cost of transporting the goods to the market.
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PAYMENT OPTIONS
The payment policy adopted by Poultry Farm, is all inclusive because we are quite aware
that different customers prefer different payment options as it suits them. Here are the
payment options that Noble Ernest Poultry Farms, LLC will make available to her clients;
• Payment via bank transfer

• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
PUBLICITY AND ADVERTISING STRATEGY
We intend growing our business which is why we have perfected plans to build our brand via
every available means. We know that it is important to create strategies that will help us
boost our brand awareness and to create a corporate identity for our commercial poultry farm
and egg production business. Below are the platforms we will leverage on to boost our
commercial poultry farm and production brand and to promote and advertise our business;
• Place adverts on community based newspapers, radio stations and TV stations.

• Encourage the use of word of mouth publicity from our loyal customers.
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook,
Twitter, Snapchat, Google and other platforms to promote our business.
• Ensure that our we position our banners and billboards in good positions all around
Nigeria.
• Distribute our fliers and handbills in target areas in and around our neighbourhood.
• Contact corporate organizations, households, landlord associations and schools by calling
them up and informing them of Mayberry Poultry Farm and the poultry produce we sell.
• Brand all our official cars and trucks and ensure that all our staff members and
management staff wears our branded shirt or cap at regular intervals.
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ENVIRANMENTAL SCANNING
INTERNAL FACTORS
Mozafar and Ramezani (2006) considered the impact of internal and external factors on
the organizational success of poultry cooperative associations in Tehran Province. In
their study, through the method of cluster sampling and Cochrane framework, out of 18
companies with 1,410 people, seven companies with 121 people and 30 managers were
studied. Data for the study were collected through questionnaires designed for building
the scale of the Analytic Hierarchy Process (AHP) method. The results showed that
the successes of cooperatives depended largely on internal factors. Different levels of
members benefit from training in cooperative principles, however, the recognition of
low-level members in the affairs of cooperative partnership, technical expertise, and
professional board of directors was estimated as average.
Shirani et al. (2007) examined the production efficiency of poultry meat in Sistan
cooperatives. In their study, the available documents, information, and statistics of 33
broiler cooperatives were obtained through round questionnaire, census methods, and
interviews with all poultry farmers. Based on the evaluation of the data collected, the
transcendental production function estimation showed that deoxynivalenol (DON) had a
significant impact on the health of broiler chickens. The study revealed that production
could be improved by increasing technology, especially to produce improved and
healthier varieties of chicken and better feeds
Saa'di (2007) evaluated eight agricultural production co-operatives using SWOT analysis &
rural rapid assessment (RRA) techniques developed by KabodarAhang to assess the
incidence of cholera in Hamedan Province. The results showed that by increasing the
level of technical and specialized knowledge as well as access to inputs, the villagers’
interaction with public facilities will be enhanced and the development of agricultural
production of cooperatives through mechanization will be strengthened. In view of
capital constraints, disregarding the principles of cooperation is one of the most important
weaknesses in the routines of cooperatives. The results also revealed the factors that
threaten cooperatives, such as lack of comprehensive and long-term goals, uncertain
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legal status, including some disagreements with government institutions and lack of
reference in the resolution of differences. Saa’di (2007) suggested that some units of
operational strategy which are based on four SWOT\TOWS matrices follow interest
opportunities in order to strengthen the prevention and reduction of the strengths of external
threats.
EXTERNAL FACTORS
Hakelius (1996) examined the role of partnership and loyalty of members in the success
of cooperatives. He emphasized that the values and beliefs of members influence their
perception of as well as their insight into the activities of cooperatives. Bruynis et al. (1997)
in their study found out that high administrative costs, the inability to balance the different
interests of members, and high expectations of the cooperative members and managers
were not among the known strongest obstacles to the development of the members of
agricultural cooperatives. They also found out that there is no significant correlation
between the management practices of managers and the success rate which the professional
companies enjoy all the time. In addition, they established the conditions for Rams
positive impact on the success of cooperatives.
Furthermore, they noted that factors such as quality management, customer

relationship, interest of members, the number of reliable members, retention of members,
and leadership board were effective in promoting cooperatives. Grace et al. (2001)
considered the justification of government’s intervention in the affairs of cooperative
members of interest only within a legal framework. Batys et al. (1996) examined the
technical deficiency of Pakistan's wheat producers. The results showed that age,
education, and the family background of the wheat producers have more influence on their
performance than other factors. The study also suggested some ways of increasing the
capacity of production from about 21 to 43%.
FEASIBILITY ANALYSIS
Feasibility Study on the establishment of a poultry farm surveys carried out by workbook
kelvin bright and the business owned by him The name of the poultry farm will be name
POULTRY FARM and will concentrate on sales of table meat birds (boilers ) and table eggs
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We will supply birds and eggs to different quick service restaurant in south south Nigeria and
our vision into be one of the known poultry farm product supplier in Nigeria with a mission
to raise healthy and nutritious birds at a very profitable venture.
From the research that was carried out it was discovered that the demand for eggs and bird
meat is not fully satisfied around some areas of delta , though they are already existing
poultry farms operating around borders of delta and rivers state environment, the poultry
farm will be sited at Bonny Local government area in rivers state a neighbouring
environment to delta there are also demand in some part of ughelli ,odorous and various part
of rivers . 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 providence employment to the locals meeting the demand of eggs
and making the price affordable in future, POULTRY FARM intends to develop into other
livestock farming structures such as Turkey, Fish, Duck, Guinea fowl and Quail.
STRATEGY AND IMPLEMENTATION SUMMARY OBJECTIVE
• To increase number of our client by 20% within 2 years of existence
• To increase our output percentage within a short period of time
• To evaluate our strategic marketing by every three months
• To keep and maintain hygienic farms for healthy eggs and birds.
OPERATIONAL PLAN
The firm will be a commercial poultry farm; therefore it will require a full time labour and
geared towards productivity on a scale for the sales of egg and sales of broiler birds. For egg
production, birds usually starts to lay at 18-22 weeks of age and continue to lay for Twelve
months (52weeks) on average laying fewer egg as the new mounting period. The typical
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production cycle last 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 management during the growing period is very important.
PHASE 3 (LAYERS): The laying period is taken to have started 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.
MARKET POTENTIAL
Most meals in Nigeria is not complete without poultry output like egg or meat. Nigeria has
over 170 million growing population that demand for meat or egg on a daily basis. With
increasing awareness on health implication of red meat, they are ever increasing demand for
white meat and livestock are source of white meat.
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 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.
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LAYERS
If layers are been rear, it takes 18 weeks to start laying egg, if we start with 1000 birds and
we loss 5% of it so we have 950 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 N600, Medium N750, Big size N1000. Assuming we use
medium size, that is N750 which result to N147750 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 N1500
per layers. Therefore, before changing the stock we might have made N7, 683,000 from sales
of eggs and N1, 425,000 from the disposal of old layers making a sum total of N9,108,000
for the period of 52 weeks (one year)
BROILERS
Broilers do not lay eggs but grows to table size when they are from 8 weeks old upward. We
are project for 400 birds of broilers and if we have 380 surviving birds sold at the rate of
N2500 each, making a total sales of N950000 for the period of rearing the broilers. Making it
total sales of (950000 x 3) N2, 850,000 for period of 12 months.
DRAWING UP A BUSINESS PLAN
A business plan is a document or a guide which outlines a proposed business objective, goals
and aim as well as the method by which it can be achieve. It helps us to predict the
profitability, identify the potentials, weakness of the business. it can also serve as a roadmap
to keep one focus on the goals and objective. (Haag 2013, 20.).
Another writer describes a business plan to be a set of management decisions that includes
what a company will be doing to ensure success in the future, in its most basic form it is the
process whereby a company makes decisions on what products or services to deliver. where,
why and how. (Crego,Schiffrin & Klaus 2003, 1).
RCK Page 21
• Component of a business plan
At a minimum, business plan should contain the following components: an executive

summary, description of the business, description of the product or service, a market
research, the marketing strategy, operations, management /organization, and a financial data.
An executive summary is a short summary from business plan. It is the first component in the
business plan which contains the comprehensive overview of the whole business. This must
be written carefully because the investors can make a quick decision on the business by
reading this only. The executive summary should contain market analysis, business
opportunities and key strategies for success. This is the most important part of the business
plan.
When writing the description of the business, it is important to give the legal and corporate
name in this section of the business plan if the business is new, it should include the vision
and mission statements and objective of the business, financial status of the business, the
time of operation. Description of the product or service, here the intention is to describe the
product or services offered in a unique way that this product or service provide a competitive
advantage.
Market research is a part of the business plan which includes the market research and
analysis. Market research basically involves research conducted to investigate what exactly
the customer wants, important questions, such as what the demography is, the geographical
location, costumer behaviour and potential competitors must be answered. This must be done
as accurate and realistic as possible to avoid failure.
• Benefits of a business plan
A good business plan helps entrepreneurs to concentrate on the necessary steps that will
enhance business success, both short-term and long-term objective. (Credo et al. 2003, 2.). It
enables the manager to make better business decision in the future drawing up a business
plan is a process that require deep thinking, this process requires one to think vigorously
about the major components of one’s business before getting started which at the end of this
process, it helps to find answers to majority all the important and critical business questions
and make decisions ahead of time. for example, marketing strategy and what products, you’ll
RCK Page 22
be selling. However, thinking deeply about the core strategies can also help to understand
how the decisions will impact the strategy. A good business plan can anticipate future
obstacle that may arise, the process of creating a business plan can help you avoid major
mistakes in business by sporting some of those potential critical mistakes before they arise,
thereby reducing risk.(Abrams 2003, 34.)
OUR BUSINESS STRUCTURE:-
This Poultry Farm is a privately owned and managed commercial poultry farms and egg
production business that intend starting small, but hope to grow big in order to compete
favourably with leading commercial poultry farms and egg production companies in the
agricultural sector.
As a matter of fact, profit-sharing arrangement will be made available to all our senior
management staff and it will be based on their performance for a period of five years or more
as agreed by the board of trustees of the company. In view of the above, we have decided to
hire qualified and competent hands to occupy the following positions;
• Chief Operating Officer

• General Farm Manager
• Human Resources and Admin Manager
• Accountant / Cashier
• Sales and Marketing Executive
• Field Employees
• Front Desk Officer
OUR TARGET MARKET
The target market of those who are the end consumer of commercial poultry farm produce
and also those who benefits from the business value chain of the poultry farming and egg
production industry is all encompassing. Every household consumes produce from
commercial poultry farms be it chicken or egg. Also, almost all hotels and fast restaurants
sell chicken and eggs. In essence a commercial poultry farmer should be able to sell his or
her chicken and eggs to as many people as possible.
RCK Page 23
Below is a list of the people and business that we will market our chickens and eggs to;
• Households
• Individuals
• Hotels
• Restaurants
• Fast food eateries
• Agriculture merchants
RUNNING A POULTRY BUSINESS
In this chapter, I will be discussing some of the aspects which are required to run a poultry
business. For this purpose, three core parts of a business activity will be focused on. These
three aspects involves the production plan - where equipment as well as the production
technique will be discussed, the financial plan – where finances and budget for the farm will
be looked at, and lastly the organisational structure – the structure of the business team
members and their respective roles will be highlighted. The essence of this is to ensure that
there is a clear-cut blueprint which can be referenced to where there is need for when the
business finally kicks off.
• Production Plan
The production plan is a very important aspect of running the business. It is synonymous to
the foundation which the business is built on. In this area, two primary aspects of the
production plan will be taken into consideration namely; the required production equipment
on one hand, and the production technique on the other. In the following paragraphs, these
two topics will be discussed at length in light with the poultry business.
• Required Production Equipment
For this sake of understanding the business in detail, it is significant to state some of the
equipment which is required for the business to stay afloat. The most used pieces of farm
equipment in broiler houses are feeders, drinkers, crates and weighing scales, flame guns and
other cleaning equipment are also used (Prabakaran 2003, 10). This equipment is listed in the
table below and the description of this equipment is also stated.
RCK Page 24
TABLE 2:- LIST OF EQUIPEMENT
S/N Equipment Description/uses

1 Generator This is us to supply electricity to
the poultry
house as well as to keep the
poultry house gadget
running
2 Feeders They are device used to feed the
birds, some of
which are made from plastic or
meters.
3 Lighting Bulbs and rechargeable for light
gadgets
4 Drinker This are device use for holding
water for the
birds to drink.
5 Waste bin This is used to trash waste in the
poultry farm
6 Table/chair The table and chair are for sales
representative
and customers
7 Shovel Will be used to clean up the
poultry house
Material Description/uses
Feeds Feeds for the birds
Water Water gotten from the borehole
Vaccine Treatments for the birds
Saw dust The dust for the floor of the poultry
house
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Day old chick These are one day old chicken that
will be
reared for 8 to 9 weeks
• Production Technique
The production technique for this business refers to the processes and stages involved from
sourcing the day-old chick up to the time they are grown and ready for the market. Although
this is just a business plan, nevertheless, it is relevant to understand how the birds will be
made ready for the final market. The system of broiler production adopted by the farmer
depends on the number of broilers that will be raised (Prabakaran 2003, 10). It takes about 8-
9 weeks for a day-old broiler to reach maturity and all-in all-out technique will be used,
under this technic day-old hybrid broiler chick are purchase in one single batch, grown until
maturity and sold in one batch to the market.
• Financial Plan
Financial planning is the process of estimating the capital requirement. Here the financial
plan includes the financial projections for the first 2 years of operation, pre operating and
operating expenses, start-up capital, funding source, proposed selling price and financial
assumptions
• Required start-up capital estimate
For a business to succeed, start-up fund plays a huge role. Since the proposal is for a business
based in Nigeria, the required capital will be estimated based on the Nigerian currency.
However, the euro equivalent for the capital will be stated as wall based on the rate stated
above. (1Euro is equal to 403 Naira)
RCK Page 26
TABLE 3. Required Start up Capital Estimate
ITEMS AMOUNT
Pre-operating Expenses ₦1,115,000 (€2,766.74)
Opening Stock ₦27,900.00 (€87.19)
Total Operating Expenses -3months ₦1,310472 (€3,251.79)
Total Start up Capital Estimated ₦2,453,372 (€6,087.77)
• Source of funds
The source of fund for the business will be from two origins. The first being from bank,
while the other will be from personal means. However, the higher portion of the fund will be
sourced from the bank. The percentage for each of the fund source will be named in the table
below.
TABLE 4. Source of Funds
SOURCES OF FUNDS AMOUNT %

Bank loan ₦1,472,023,20 (€3,652.66) 60%
Personal equity ₦981,348.80 (€2,435.10) 40%
Total Funds ₦2,453,372 (€6,087.77) 100%
Organization Structure
The organization structure refers to the cooperate relationship between the employee and the
company. There are sets of roles and responsibilities assigned to each of the employee in the
company. The purpose of this is to ensure that each team member understands what is
expected of him or her daily. The chart below describes based on hierarchy from the
uppermost level in terms of employee responsibility to the labourers.
RCK Page 27
MANAGER
MARKETER
LABOURS
FIGURES 1. Organization structure.
• Ownership of the business
The ownership type of AKINS poultry farm is a sole proprietorship business. This type of
ownership is selected because they are easy to form, and the owners enjoy sole control of his
or her business profits. However, they also have disadvantages, one of which is that the
owner is personally accountable for all the business losses and liabilities. This farm is
intended to start small and grow gradually with easy and flexible implementation policy, the
management team will consist of two men and one regular worker. Operation is from
Monday to Saturday, and opening hour will be 7am and closing time will be 6pm.
• Key management staff
The key management staff refers to the three levels of employee in the company namely: The
manager, the market and the labour. In order to understand the assigned role for each of these
employees, the table below is very important, and it creates an opportunity to describe what
is expected for each of the team members.
TABLE 5. Key Management Team.
Position Functions and

responsibility
Manager Managing, supervising jobs
sorting birds, sales and
marketing
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Marketer Majorly Marketing the

product and making delivery
to customers
Labourers Feeding and cleaning of the
poultry house change the
water and clean the drinkers
• Details of salary schedule
In this aspect, a description of the salary structure for each of the employee is analyzed. This
analysis is achieved by considering the minimum wage scale of ₦18, 000 which is currently
implement in the Nigerian labour force. The euro equivalent for each of the salary is
considered in the table below so that it can be understood in a global context.
TABLE 6. Staff Salary Schedule
S/N Name Monthly Salary Annual Salary

1 Manager 1 ₦30,000 (€74.44) ₦360,000 (€893.30)
2 Marketer ₦30,000 (€74.44) ₦360,000 (€893.30)
3 Staff 1 ₦20,000 (€49.62) ₦240,000 (€595.53)
Total ₦80,000 (€198.51) ₦960,000

(€2,382.13)
MARKETING RESEARCH/ MARKET ANALYSIS
According to the research made by Sanni (2017,) broiler production is profitable with mean
profit of ₦912 (2.26 €) per bird and an average return of ₦1.98 (0.0049€) for every
₦1(0,0024€) invested in Kwara state Nigeria, he further explains that the mean profit
efficiency is 74% while the range is 98%.
Similarly, according to Baba, Dubai, Sanchi, Jakub & Manga (2016) the average total cost of
broiler production per bird was ₦1, 085.00 (2.70€), average total revenue was ₦1, 590.00
RCK Page 29
(3.90€) per bird and net farm income was ₦505.00 (1.20€) per bird. This indicated that
smallholder broiler production in the study area is profitable.
For a single broiler nurtured from a day old to maturity had a total cost of ₦1509.80 (3.75€)
made up of ₦274.20 (0.7€) as fixed cost and ₦1235.60 (3.10€) as variable cost. The gross
revenue per bird was ₦2169.99 (5.40€). The Net profit of ₦660.11 (1.64€) per bird was
estimated and this implies that forever ₦1.00 (0.0025€) investment in broiler production
would yield 44kobo (0.0012€) in return. This indicates that the broiler poultry estate was
profitable in Lagos Nigeria. (Omolon 2018.)
For single broiler nurtured to maturity had a total cost of ₦942.14 (2.34€) made up of ₦30.40
(0.075€) fixed cost and ₦911.74(2.26€) variable cost. With gross revenue per bird at
₦1334.00 (3.31€), net revenue of ₦391.86 (0.97€)per bird was calculated and this gave a net
margin-to-cost ratio of 0.42 which implies that a ₦1.00 (0.0025€)investment in broiler
production all things being equal would yield ₦0.42 (0.0010€) in return. (Ike & Ugwumba
2011.)
POULTRY FARM IN FINALED
In order to understand the state of poultry farming in Finland, reference to the Natural
Resources Institute Finland (Luke) is very important. This is a leading non-profit
organization which conducts researches in bio economy in Finland. According to Luke, about
71 million eggs are produced annually and about 117 million kilograms of poultry meat.
RCK Page 30
Most of the said production is consumed in Finland. Similarly, in the research of the Finnish
broilers Association, about 73 million broilers are slaughtered in Finland each year having an
average slaughter weight of 1.7 kg. Chicken consumption and production have grown
steadily in recent years. Finns already eat more than 23 kilos of broiler meat a year.
Figure 2: Broiler production and consumption in Finland (adapted from the Finnish Broilers
Association, 2109)
In other words, Finland can meet its local demand for poultry products and even produced
beyond that. The reason behind this is that there are over 400 poultry farms in Finland. Luke
writes that, the production of poultry meat is concentrated near slaughterhouses in Southwest
Finland, Satakunta, Southern Ostrobothnia and Piranha. Eggs are produced throughout
Finland. (Luke2016.)
When compared with Nigeria, using advance technologies in agriculture, Finland can boost
production with the adoption of regular, and organic among other methods. For instance,
according to the research conducted in 2016, egg
production amounted to 73.5 million kilograms, one per cent more than in 2016. Production
increased by four per cent during the first half of the year and decreased by one per cent
during the second half of the year. The number of eggs produced in enriched cages decreased
by three per cent. The amount of eggs produced in barn and free-range hen houses increased
by eight per cent, and in the amount produced organic poultry farms increased by 16 per cent.
(Luke 2016.)
Target market
The proposed poultry farms target markets are Families/household, restaurant, hotels,
student, and event planner.
RCK Page 31
TABLE 7. Marketing strategies
Advert/promotional Budget per Details on Frequency and

Strategies annum (# / €) justification of
budget
Social network Facebook/twitter
Bulk sms 5,000 (€12.41) To remind our customer of
our existence
Complimentary card 2,000 (€4.96) Once in 2year
Banners and signage 10,000 (€24.81) Once
Total 17,000 (€42,18)
Distribution strategies/sales method
There are numerous distributors around Osun state, we intend to use their service and
knowledge of distribution within our vicinity as well as the use of our own direct sales force
from our outlet. There will be discount for bulk purchase, free delivery and payment method
will be through cash and online payment. Promotion strategies are the strategy that will be
adopted to
promote or market the business. Example are social network such as Facebook, Twitter, and
Instagram. Sending of bulk text messages, complimentary cards and printing of banners /
billboard. Other note on advertising and promotional strategies discount sale, low cost
pricing.
FINDINGS
• Rather than focusing on one procedure, such as bird-by-bird inspection, as the
primary component of an inspection process, FSIS should direct its efforts toward the
establishment of a comprehensive quality assurance program. Such a program would
consist of several components, one of which might be organoleptic inspection.
• An important component of any quality assurance program is a statistically based
RCK Page 32
random sampling protocol. The committee recommends that FSIS establish such a
sampling program as part of any future modifications of its inspection system.
• Emphasis should be shifted from detection to prevention of problems at the earliest
feasible stage in production to increase the effectiveness of poultry risk-management
activities.
• the areas of risk management outside the purview of FSIS, the agency should
attempt to maintain a close liaison with responsible agencies.
CONCLUSIONS
In this project predictions and conclusions about the market were based on secondary data
however, the aim and objective of this project was achieved. Firstly, a business plan was
created which contain basic structure of a business plan, such as Business overview,
marketing planning and financial calculations, marketing strategy, operational plan and
financial plan. Secondly, starting a poultry business is Nigeria is demanding and requires
close monitoring. However, the financial aspect of this project was able to show from the
profit and lost projection that the business is profitable in Nigeria. Nevertheless, the PESTLE
and SWOT analyses show that there are so many things that could be improved in Nigeria
poultry system which will boost the productivity such as the technology and availability of
loan for investment, the pestle and swot analyses show that the poultry business in Nigeria
has some promising side and some down side. The calculated Total Start-up Capital was
based on the preoperational expenses, Opening Stock and total Operating Expenses. The
calculation was made by estimated data. SWOTanalysis was used to show the strength and
weakness, as well as opportunity and threat, the risk and risk management was also analyzed.
Detail account was given on the cost of operation which includes cost of feeding, insurance
per bird and tax. This project also includes comprehensive calculations of aspects such as
equipment, suppliers, employee salaries, depreciation and general regulations of how to start
and register a poultry business in Nigeria.
RCK Page 33
REFERENCES
• Abrams, M. 2003. The Successful Business Plan: Secrets & Strategies. Available:
https://books.google.fi/books/about/The_Successful_Business_Plan.html?id=hpFxjEsZL
UwC&printsec=frontcover&source=kp_read_button&redir_esc=y#v=onepage&q&f=fals
e. Accessed: 20 November 2019.
• Adeyemo, A. & Onikoyi, M. 2012. Prospects and Challenges of Large-Scale Commercial
Poultry Production in Nigeria.
Availablehttp://docsdrive.com/pdfs/medwelljournals/aj/2012/388-393.pdf. Accessed: 30
May 2019.
• Amos, T. 2006. Analysis of Backyard poultry Production in Ondo State Nigeria.
Available: http://www.docsdrive.com/pdfs/ansinet/ijps/2006/247-250.pdf . Accessed: 15
April 2019.
• Baba, D., Dabai, S., Sanchi, D., Yakubu, G. & Manga, T. 2016. Profitability of
Smallholder Broiler Production in Bida Metropolis, Niger State, Nigeria.
Available:https://www.academia.edu/25502114/Profitability_of_Smallholder_Broiler_Pr
oduction_in_Bida_Metropolis_Niger_State_Nigeria . Accessed: 14 November 2019.
RCK Page 34

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POULTRY FARM START-UP

Purposes of a Business Plan

1. Securing financing from investors

2. Documenting a company's strategy and goals.

A business plan should leave no stone unturned.

3. Legitimizing a business idea

4. Getting an A in your business class.

Speaking from personal experience, there's a chance you're here to get

What does a business plan to include?

• Business Plan Subtitle

1. Business Plan Subtitle

4. The Business Opportunity

The business opportunity should convince investors that your organization

1. Making availability of quality chicks. (Low input technology).

2. Diversification programme- emu, turkey, geese guinea fowl.

3. Strengthening of feed quality monitoring wing.

Our mission And vision statement

1. STRENGTHS OF POULTRY FARM

for layers and broilers within 4 to 6 or 8 weeks depending on the feed.

world. According to an estimate, it contributes more than 49 billion dollars annually

• Limited competitors:-Poultry chicken farming isn’t a competitive industry. When

investing any capital on marketing and promotion every time.

• Not easy entry:-According to an estimate, the initial investment of starting a poultry

upon the location, size, and various factors.

2.WEAKNESS OF POULTRY FARM

• High initial investment:-It requires a plethora of capital to establish a well-

• No differentiation:-Your competitors are selling the same product (chickens)

3.OPPORTUNITIES OF POULTRY FARM

4.THREATS OF POULTRY FARM

• Description of the Business

• Current status of business

₦981,348,00 in Naira and 2,435.11 in Euro is available. This business is proposed to

TABLE 1. Legal requirement. (Cooperate Affairs Commission 2012)

Legal Requirements Budget Details on Frequency of

Corporate Affairs 20,000 (€49.62) Once

Local Govt. permit & 10,000 (€31.25) Yearly

SALES AND MARKETING STRATEGY

OUR PRICING STRATEGY

• Payment via bank transfer

PUBLICITY AND ADVERTISING STRATEGY

• Place adverts on community based newspapers, radio stations and TV stations.

Furthermore, they noted that factors such as quality management, customer

STRATEGY AND IMPLEMENTATION SUMMARY OBJECTIVE

• To increase number of our client by 20% within 2 years of existence

• To increase our output percentage within a short period of time

• To evaluate our strategic marketing by every three months

PHASE 2 (GROWERS): This period concerned is between 8 – 21 weeks of age. Growers

BUSINESS EVALUATION OF FARM/FINANCE

DRAWING UP A BUSINESS PLAN

• Component of a business plan

At a minimum, business plan should contain the following components: an executive

• Benefits of a business plan

OUR BUSINESS STRUCTURE:-

• Chief Operating Officer

OUR TARGET MARKET

RUNNING A POULTRY BUSINESS

• Required Production Equipment

TABLE 2:- LIST OF EQUIPEMENT

S/N Equipment Description/uses

• Required start-up capital estimate

TABLE 3. Required Start up Capital Estimate

TABLE 4. Source of Funds

SOURCES OF FUNDS AMOUNT %