NATIONAL OPEN UNIVERSITY OF

NIGERIA
BUSINESS PLAN POULTRY FARM

PREPARED BY

WAKILAT ABOSEDE BALOGUN

MATRIC: NOU165027316

COURSE CODE: GST302

COURSE TITLE: BUSINESS CREATION AND

GROWTH

SEPTEMBER, 2019.
1.0 EXECUTIVE SUMMARY

This business plan is on the establishment of a poultry farm is based on the survey made, and the

business wholly Prepared By WAKILAT ABOSEDE BALOGUN with the matriculation

number NOU165027316

The name of the poultry farm will be VONEX FARMS VENTURE and will concentrate on

sales of eggs.

We will supply birds and eggs to different quick service restaurant in south west Nigeria and our

vision is to be one of the known poultry farm product supplier in Nigeria with a mission to raise

healthy 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 Lagos, though they are already existing poultry farms

operating around borders of Lagos and Ogun state environment, the poultry farm will be sited at

Ifo Local government area in Ogun state a neighboring environment to Lagos, there are high

demand in some part of Ifo, Sango and some part of Lagos. 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, VONEX FARMS VENTURES intends to develop into

other livestock farming structures such as turkey, duck, guinea fowl and quail.

1.2 STRATEGY AND IMPLEMENTATION OBJECTIVE

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

 To evaluate our strategic marketing by every three months

 To keep and maintain hygienic farms for healthy eggs and birds

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1.3 TACTICS AND STRATEGY IMPACTS

VONEX FARMS products will be priced at affordable rate. When a markup is placed on any of

our products, customers will be willing to pay because of the affordable price.

The venture to be established is a poultry farm that will concentrate on the production of eggs

and sales of layers birds, because of the fund required the venture will start as a small scale

business having the population of three Local Government Area of Lagos, which are Alimosho,

Agege, Ifako–Ijaiye are target market. The farm site will be a permanent land and will need

necessary equipment for its operation as it is entirely new firm to start from the scratch.

2.1 OPERATIONAL PLAN

The firm will be a commercial poultry farm; therefore it will require a full time labor and geared

towards productivity on a scale for the sales of egg and 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

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

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the laying period. The number of birds housed is the number of pullet in the laying house when

egg production starts.

2.2 MANPOWER REQUIREMENTS

Semi skilled workers are needed to look after the feeding, vaccination and cleaning at the farm.

Almost 7 persons should be hired to manage the operations of the automated controlled layer

farm for 30,000 birds.

Farm Employees N0. Monthly Salary Annual

Production Supervisor 1 25,000 300,000
Accounts & Admin Officer 1 15,000 180,000
Housemen 4 8,000 384,000
Electrician 1 12,500 150,000
Total 7 1,014,000
3.0 MARKET ANALYSIS
Most meals in Nigeria are 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.

3.1 MARKETING STRATEGY

As we mentioned earlier, resident and families of three local government of Lagos being our

target market 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 demand for our product. Our major market aggression will be supplied to local

markets makers of Cake and Ice Cream, Local restaurants and Hotels.

3.1.1 SWOT ANALYSIS

STRENGHT: Check the advantage you have over other competitors, Experience, marketing

strategy proximity to market utilizes them smartly.

WEAKNESS: Over Dependency, Mobility, Location, Experience /Exposure Marketing skills

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OPPORTUNITIES: Expansion opportunity, integration of broiler production, feed production

and training of other in individuals etc

THREAT: Threat existing in the poultry industry includes the following:

I. Source of birds: Wrong source of birds will mean wrong output; utilize

recognized/trusted agency, company or hatchery.

II. Feed: Feed wrongly formulated could lead to the failure of the project, buy feeds only

from reputable mills, agents etc check for spoilage and store in non-humid/moist

environment.

III. Water Management: Water is the major source of disease outbreak. Mismanagement

could lead to a great loss; ensure that your water source is checked for impurities,

equipments/accessories should be cleared often to avoid contamination with faeces.

IV. Vaccine: Inadequate production of local vaccine leads to procurement of vaccines that

might have been mishandled. This could result in Vaccine break. Immunity test

purchase from reputable vets, agents etc. Disease outbreak-proper monitoring of birds

to detect early signs, employ the service of a professional

V. Formite: Veterinary equipment, farm implement etc could carry infective agents.

Disease could be transferred from one farm to the other. No worker should keep birds

or ever work or assist in any other farm. Theft -business owners should do proper

monitoring, proper records should be kept.

3.2 MARKETING

Marketing activities include among other grading quality, promotions, packaging and value

adding these activities are essentials as they will lead to large volume of sales of product quickly

as possible resulting to increase of income.

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3.3 GRADING

Eggs should be graded by size and labeled according to its weight. During selection and grading,

care must be applied to ensure that weight is uniformed to avoid rejection from customers.

4.0 BUSINESS EVALUATION OF FARM/FINANCE

This evaluation is based on point of lay birds i.e. layers

Layers are those birds that lay eggs. 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.

4.1 LAYERS

If layers are been reared, it takes 18-22 weeks to start laying egg, if we start with 1000 birds and

we made a 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% of egg production that is 855 pieces of

eggs per day and 5985 pieces of egg every week. If we make a loss 1% of the egg that is 60

pieces every week so we have 5925 pieces of eggs per weeks which is 198 crates of eggs every

week and a crate of egg is sold accordingly to its size.

Small size of eggs costs N800,

Medium size of eggs costs N850,

Big size of eggs costs N950.

Assuming we use small size, that is N800 which result to N157600 sales of egg every week.

After laying eggs for 52 weeks (12 months) we dispose the layer and it will be sold at the rate of

N2000 per layers.

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5.1 START UP REQUIREMENT.
Land acquisition – N5, 0000000.00
Building - N2.5, 0000000. 00
Treatment/Vaccines - N 100.000. 00
Total: N7.60000000, 000. 00
Direct cost Price (N)
Land 10 plot 5,000,000.00
Building Farm 2.5, 000000.00
Layers 10,000 birds 700, 000. 00
Cost of brooding Monthly 500, 000. 00
Feeding 7000 bags 2,000000.00
Treatment/Vaccines Monthly 100,000.00 10.8 000.000:00
Indirect cost
Miscellaneous Monthly 100,000.00
Expenses
Salaries Monthly 125, 000. 00 225, 000:00
Total 11.250.000 000 11.025.00:00
TOTAL – 11.250.000 000

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