POULTRY FARMING BUSINESS PLAN FOR SADIYYA’S POULTRY

Executive Summary:

 Business Name: SADIYYA’S POULTRY

 Business Location: Dutsen Reme Lowcost
 Founding Date: 11/11/2023
 Business Type: Poultry Farming

Business Description:

 Overview of Poultry Farming Industry in Nigeria

 Company Objectives and Goals

Products and Services:

 Types of Poultry: Layers, Broilers, or a combination

 Eggs and/or Meat Production

Market Analysis:

 Industry Overview: Poultry Farming in Nigeria

 Target Market: Local consumers, restaurants, markets, etc.
 SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats

Sales and Marketing Strategy:

 Pricing Strategy: Competitive pricing based on market research

Financial Plan:

Risk Analysis:

 Identify potential risks and challenges

 Mitigation Strategies: Plans to address and overcome challenges
 Overview of Poultry Farming Industry in Nigeria

As of my last knowledge update in January 2022, the poultry farming industry in

Nigeria has been a significant contributor to the country's economy. However,
please note that the information might be subject to change, and it's advisable to
check more recent sources for the latest updates.

Overview:

1. Importance to the Economy:

 Poultry farming is a crucial component of Nigeria's agricultural sector, providing
employment opportunities and contributing to food security.
2. Types of Poultry Farming:
 Nigeria has both large-scale commercial poultry farms and small-scale, backyard
or village-based poultry farming.
 Broiler farming (meat production) and layer farming (egg production) are the two
main segments.
3. Major Challenges:
 Disease outbreaks: Avian influenza and other poultry diseases can have a
significant impact on the industry.
 Feed costs: The rising costs of poultry feed can affect profitability for farmers.
 Infrastructure: Limited access to modern facilities and infrastructure can impede
growth.
4. Government Initiatives:
 The Nigerian government has implemented various initiatives to support poultry
farmers, including subsidies, training programs, and disease control measures.
5. Market Dynamics:
 The demand for poultry products, especially chicken meat and eggs, remains high
due to population growth and changing dietary preferences.
 Urbanization and an expanding middle class contribute to increased demand for
poultry products.
6. Technology Adoption:
 Modern farming practices and technology adoption, such as improved breeds,
vaccination programs, and better feed formulations, are gradually being
embraced.
7. Challenges with Disease Control:
 Disease outbreaks, particularly avian influenza, pose a significant challenge to the
industry. Biosecurity measures and prompt government intervention are essential
to mitigate these risks.
8. Export Opportunities:
 There have been efforts to meet international standards for poultry products,
potentially opening up export opportunities for Nigerian poultry farmers.
9. Training and Education:
 The need for training and education in modern poultry farming practices is
recognized, and various programs aim to enhance the skills of poultry farmers.
10.Environmental Concerns:
 Issues related to waste management and environmental impact are emerging
concerns, with a focus on sustainable and environmentally friendly practices.
11.Market Competition:
 The poultry industry faces competition from imported poultry products,
emphasizing the importance of enhancing local production efficiency and quality.
 It's essential to verify this information with more recent sources to understand any
developments or changes in the Nigerian poultry farming industry since my last
update in January 2022.

Company Objectives and Goals:

1. Financial Goals:
 To Increase revenue and profitability.
 To achieve a specific market share or sales target.
2. Market Expansion:
 To expand the company's presence in existing markets or enter new markets.
 To Increase the customer base.
3. Product or Service Development:
 To introduce new products or services.
 To enhance existing products or services.
4. Operational Efficiency:
 To improve operational efficiency and cost-effectiveness.
 To enhance supply chain management.
5. Customer Satisfaction:
 To enhance customer satisfaction and loyalty.
 To provide excellent customer service.
6. Innovation and Technology:
 To embrace innovation and new technologies.
 To Stay ahead of industry trends.
7. Employee Development:
 To invest in employee training and development.
 To Foster a positive work culture.
 Types of Poultry: Layers, Broilers, or a combination

Remember that the specifics of SADIYYA’S POULTRY objectives, goals, and

USP depend on the industry, target market, and overall business strategy. It's
essential to regularly review and update these aspects to align with changing
market conditions and internal developments.

The type of poultry SADIYYA’S POULTRY farm focuses on are layers,

broilers, and combination of both

Layers:

 Purpose: Primarily raised for egg production.

 Characteristics: Layers are selected for their ability to lay a large number of
eggs.
 Products: The main product is eggs.
 Lifecycle: Layers are kept for an extended period until their egg-laying efficiency
declines significantly.
 Considerations: Layer farming requires specific attention to egg quality and the
health of the laying hens.
2. Broilers:
 Purpose: Raised for meat production (chicken meat).
 Characteristics: Broilers are bred for rapid growth and efficient meat
conversion.
 Products: The primary product is chicken meat.
 Lifecycle: Broilers are typically raised for a shorter period (around 6-7 weeks)
until they reach market weight.
 Considerations: Broiler farming requires careful management of feeding,
housing, and health conditions to ensure rapid growth and high-quality meat.

3. Combination Farming:
 Purpose: Some farms opt for a combination of layers and broilers for diversified
revenue streams.
 Characteristics: This approach involves managing both egg-laying hens and
chickens for meat production on the same farm.
 Products: Eggs and chicken meat are the primary products.
 Lifecycle: Layers are kept for a more extended period, while broilers have a
shorter lifespan.
 Considerations: This model requires careful planning to balance the
requirements of both types of poultry

Additional Products/Services:

1. Manure:
 Poultry manure is a valuable byproduct rich in nutrients. Many poultry farms
collect and sell or use the manure as fertilizer for crops.
2. Feathers:
 Feathers can also be collected and sold for various purposes, such as making
pillows, cushions, or even as components in certain industries.
3. Organic Poultry Products:
 Some farms focus on organic or free-range poultry farming, emphasizing organic
eggs or meat, which can attract a specific market segment willing to pay a
premium for organic products.
4. Poultry By-products:
 Apart from feathers, other by-products might include blood, offal, and more,
which can be utilized in various industries such as pet food or fertilizer
production.
5. Consultation and Training:
 Some farms offer consultation and training services to aspiring poultry farmers or
those looking to improve their practices.

Industry Overview: Poultry Farming in Nigeria

1. Importance to the Economy:

 Poultry farming is a significant contributor to Nigeria's agricultural sector,
providing employment and contributing to food security.
 Both large-scale commercial farms and small-scale backyard farms exist.
2. Types of Poultry Farming:
 Both broiler and layer farming are prevalent, with some farms adopting a
combination model for diversified revenue streams.
3. Challenges:
 Disease outbreaks, such as avian influenza, pose a threat.
 Fluctuations in feed costs impact profitability.
 Limited access to modern facilities and infrastructure.

Target Market: Local consumers, restaurants, markets, etc.

1. Local Consumers:
 Direct sales to local consumers for both eggs and meat.
 Emphasis on freshness, quality, and nutritional value to attract health-conscious
consumers.
2. Restaurants and Hotels:
 Supplying to restaurants, hotels, and catering services.
 Emphasizing quality, consistency, and reliable delivery schedules.
3. Markets and Retailers:
 Selling to local markets and retailers.
 Offering a range of products, possibly including value-added items.

SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats

1. Strengths:
 High Demand: Growing population and demand for poultry products.
 Local Expertise: Knowledge of local conditions and consumer preferences.
 Government Support: Benefiting from government initiatives and subsidies.
2. Weaknesses:
 Infrastructure Challenges: Limited access to modern facilities.
 Disease Risks: Vulnerability to disease outbreaks impacting production.
3. Opportunities:
 Export Potential: Opportunities to meet international standards for exports.
 Value-Added Products: Developing and selling value-added poultry products.
 Technology Adoption: Embracing technology for improved efficiency.
4. Threats:
 Disease Outbreaks: Risks of avian influenza and other diseases.
 Market Competition: Intense competition from local and international players.
 Fluctuating Input Costs: Variability in feed and production costs.

This SWOT analysis provides a framework to understand internal and external

factors that can impact the poultry farming business in Nigeria. Regularly
updating this analysis can help adapt to changing market conditions and stay
competitive.

Pricing Strategy: Competitive Pricing Based on Market Research

1. Market Research:

2. To increase number of our client by 22% within 3 years of existence

3. To evaluate our strategic marketing by every three months
4. To keep and maintain hygienic farms for healthy eggs and birds
5. Cost-Based Pricing:
 Determine production costs, including feed, labor, infrastructure, and other
overheads.
 Add a reasonable profit margin to set a competitive yet profitable price.

TACTICS AND STRATEGY IMPACTS

SADIYYA’S POULTRY 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 broilers, birds because of the fund required the
venture will start as a small scale business having the population of the whole
Funtua local Govt. 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.
 Engage with the community to build a positive brand image.
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 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 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.
MARKETING STRATEGY
As we mentioned earlier, resident and families of three local government of
Abuja 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.
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.
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
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.

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 ₦500, Medium ₦600, Big size ₦700. Assuming we use medium size,
that is ₦600 which result to ₦118,500 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 ₦700 per layers
Therefore, before changing the stock we might have made ₦6,162,000 from sales
of eggs and ₦665,000 from the disposal of old layers making a sum total of
₦6,827,000 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 ₦1,500 each, making a total sales of ₦570,000 for the
period of rearing the broilers. Making it total sales of (570,000 x 3) ₦1,710,000
for period of 12 months
Total Sales expected for 12 months.

Layers ₦6,162,000
Broilers ₦1,710,000

₦7,872,000

CAPITAL EXPENSES
2 plots of land @ N150,000 ₦300,000
Block 2000 pcs @ 110 ₦220,000
Cement 60 bags @ N1800 ₦108,000
Cement Carriage ₦3,000
Woods ₦151,700
Roofing Sheets ₦126,000
Roofing Slate ₦25,000
Ceiling Slate ₦15,000
Reggie’s ₦7,500
Nails ₦12,000
Net 15 bundles @ N4000 ₦60,000
Iron door ₦43,000
₦1,071,200
SANDS
Stone Big 2 tipper @ ₦25,000 ₦50,000
Sharp sand (Mayans) ₦20,000

Soft Sand ₦22,000

₦92,000
TOOLS
Day old feeders 30pcs @ ₦120 ₦3,600
Day old Drinker 15pcs @ ₦200 ₦3,000
Feeders 60pcs @ ₦550 ₦33,000
Drinkers 12pcs @ ₦2500 ₦30,000
Shovel & Head pan ₦2,000
Thermometer (Digital) ₦8,000
Scale (Digital) ₦10,000
Geepee Tank 1500litres ₦23,000
Geepee Tank 500 litres ₦14,000
Nylon 7 pcs @ ₦700 ₦4,900

WORKMANSHIP
Carpenter ₦65,000
Bricklayer ₦80,000
Miscellaneous
₦130,000
₦275,000

Business ₦20,000
Registration
PRODUCTION

1000 pullets @ 140 ₦140,000

400 broilers @ 130 ₦52,000

₦192,000
OPERATIONAL EXPENSES
Feeds, Vaccines & upkeeps ₦1,330,000 Salaries and stationeries
₦240,000
₦1,570,000
SUMMARY
Capital expenses ₦1,781,700
Operational expenses ₦1,570,000
TOTAL EXPENSES ₦3,351,700
TOTAL SALES FOR PERIOD OF 12 MONTHS
Layers ₦6,162,000
Broilers ₦1,710,000

TOTAL SALES ₦7,872,000

PROFIT = SALES – EXPENSES

For layers during egg production, the expenses are half of sales of egg
will go in for feeds and other operational expenses. i.e. ₦6,162,000 divide
by 2

6162,000

2 = ₦3,081,000

For broiler the cost of production till the birds reaches table size before
disposition is between ₦900 to
₦1000. So therefore let put the bench mark to ₦1000. If ₦1140 broiler is
sold at the rate of ₦1500
₦1,710,000 – ₦1140,000 = ₦570,000
 The profit of layers for the period of 12 months = ₦3,081,000 The profit of
broilers for the period of 12 months = ₦570,000 Total profit =
₦3,081,000 for layer
₦571,000 for broiler
₦3,651,000
USING PAY BACK PERIOD
This method talks about the number of period that a business investment will
pay back amount invested on it. It is 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 Investment Initial Capital

Using Payback Period of loan generating a profit of ₦3,651,000, 2 years and

8 months.

FUNDING MECHANISM
Securing loan at the rate of 8% through government intervention window at
the Bank of Agriculture, Bank of Industry and Commercial banks.

Potential Risks and Challenges:

1. Disease Outbreaks:
 Risk of infectious diseases spreading among the poultry population.
2. Fluctuating Feed Costs:
 Volatility in feed prices impacting production costs and profit margins.
3. Market Competition:
 Intense competition from other poultry farms or imported products.
4. Changing Regulatory Environment:
 Evolving regulations and compliance requirements affecting operations.
5. Climate and Environmental Factors:
 Weather-related challenges affecting poultry health and farm infrastructure.
CONCLUSION
The project is technically feasible and commercially viable. It is therefore
recommended for funding.