How to Start a Poultry Farming Business – for Beginners
Over time, I have gotten several questions regarding the issue of starting a poultry farming business. Do you need a sample poultry farming business plan template for beginners? Then i advice you read on as i will be sharing with you strategic information on how to start a poultry farming business from scratch and grow it successfully.
Poultry farming is usually the business i recommend for retirees and individuals who are passionate about livestock farming. In the past, people were non-challant about breeding birds or cultivating crops for profits. But with the recent global burst in population and a worldwide demand for food, people are now beginning to realize the potential of providing the most important basic need of man.
Poultry farming is a viable business anytime any day; and to be sincere with you, it’s a business I have been considering for some time now. Below are reasons why I consider poultry farming a profitable business?
P.S: You can also check out our guide for starting catfish farming in Nigeria.
3 Factors that makes Poultry Farming a Profitable Business
There are a lot of factors that make poultry farming business a profitable one but I will be highlighting only three major factors:- Food is one of the basic needs of man. Regardless of the economic situation, human beings must feed and since domestic birds are consumable; that makes poultry farming feasible.
- My country Nigeria for instance has a population of over 150million and growing; bear it in mind that a huge population means a huge demand for food (egg and meat).
- With the increased awareness on the health implications of red meat; there’s an increased demand for white meat and birds are a source of white meat.
Secondly, the information shared in this article is applicable to any locality; be it United States, Canada, India, United Kingdom, Nigeria, Ghana, South Africa, etc. Without wasting your time, below is a step by step guide on how to start your own poultry farming business.
How to Start a Poultry Farming Business – Sample Business Plan Template
1. Select your Poultry NicheThe poultry industry is a broad niche. There are many sub-sectors in the poultry industry which you can tap into. When poultry farming is mentioned, a lot of people take that to mean chicken rearing or turkey rearing alone but poultry farming is a very wide business with different aspects. Below are niches in the poultry business:
- Egg production (Layers breeding)
- Meat production (Broilers breeding)
- Chicken breeding (Hatchery)
- Poultry feed production
- Poultry equipment manufacturing
- Egg and meat processing, packaging and marketing
- Poultry marketing and consultancy
2. What type of bird will you be focusing on?
Another important factor to consider is the type of birds you wish to rear. There are several types of birds that you can rear. Poultry farming can further be classified into the types of birds:
- Domestic fowl or Chicken (Broilers and layers)
- Turkey
- Guinea fowl
- Pigeon
- Duck
- Goose
- Peacock
- Quail
3. Start-up Capital Investment
The poultry farming business is capital intensive; depending on the scale, location of your farm and the type of management technology used. A small scale poultry farm being run behind your house may require a capital of between $500 – $1,500. A medium scale poultry farm may require $2,000 – $5,000 and a large scale poultry farm may require a start-up capital of $10,000 and above. Like I stated earlier, scale is directly proportional to capital.
4. Poultry Location
A good location is vital to the success and profitability of your poultry farm. An ideal poultry farm should be sited where there’s a large availability of cheap land and at the same time; should be close to areas with high population density. It’s not advisable to site your poultry farm within a residential area because of the offensive odour it produces.
While it is smart to start your poultry farm in a place where the odor and noise would not disturb other people, you should also consider the security factor. Lands in sparsely populated settlements are cheap and you would have fewer issues with community disturbance and zoning but it may be far from your market and buyers. You need to find a balance, look for a place that is favorable to you and would also be favorable to your customers at the same time.
5. Housing your birds
Another important factor to consider is the poultry housing system and fencing options. Poultry housing system determines up to 40% of the rater of success you would achieve in poultry farming. A good housing system is very important for your poultry farm. The housing system commonly used in poultry farming are-:
- Extensive system: Range and fold unit
- Semi Intensive system: Standard semi intensive unit and straw yard
- Intensive system: i. Deep litter, ii. Wire and slated floor, iii. Straw yard, iv. Battery cage
b.Deep Litter System-: This system involves spreading wood shavings or saw dust on a concrete ground with the chickens placed on the floor and the dust serving as a ‘cushion’ for them. The dust is changed regularly, either by removing and replacing or by layering. Deep litter system is used by a lot of poultry farmers because it increases efficiency and makes it easier to manage large flocks of birds but it allows for a faster spread of diseases when there is an outbreak and also makes it difficult to fish out unproductive birds.
c. Battery Cage System-: As for the battery cage system, metal cages are constructed inside a building to house the birds. The cages are usually split into different compartments to house small groups of birds. The cages also contain feeding and water troughs as well as laying nests. Bird droppings fall on the floor and are cleaned mechanically by a scraper. This method is considered to be the most effective for egg production but the major downside of this method is that it is more expensive to construct and maintain compared to other forms of poultry housing systems.
If you are running a poultry farm for commercial purposes and you intend getting the best out of the business; with respect to high birds’ productivity and efficiency. Then you should consider housing your birds using the intensive system. Note that each of the three housing system has its own advantages and disadvantages. Lastly, your poultry housing structure should be built at a particular angle; taking sunlight and wind into consideration.
6. Poultry equipment and appliances
There is a very long list of equipment and facilities to put in place in order to fully manage a poultry farm. You would need to construct a house for the birds, provide feeders and drinkers, a good waste disposal system, source of water, lightening and heat, egg crates and storage space for keeping feed and eggs.
Therefore, you should make a list of all the items you would need, find out the prices and compare different prices to further give you an idea of the costs of setting up the poultry farm.The following equipment may be needed for your poultry farm and their uses:
- Feeders
- Drinkers
- Perches
- Nests
- Crates
- Lighting system
- Waste disposal system
- Incubator
- Heaters or brooders
- Egg tray
- Cages and coops
- Producing your feeds by yourself
- Buying already-made poultry feeds
8. Poultry Farm staffing and manpower
Operating a poultry farm is not labor intensive if the use of technology is employed. With respect to staffing, the number of manpower needed is also dependent on the size of your farm. But some must haves should be admin officer or manager; who will oversee the day to day running of your business. Your manager can also double as your accountant to cut down cost.
It is also advisable you have personnel who will reside permanently in the farm to monitor and see to the well being of your birds. You will also need security personnel that will monitor the inflow and outflow of people around your farm; and most importantly, guard against theft. Aside these few mentioned, you can add more personnel to suit your business needs.
9. Accounting-: I mentioned in one of my previous articles how a lot of poultry farmers take the accounting and record keeping aspects of their business for granted. Poultry farming is just like any other commercial business out there and for you to track your performance and productivity, adequate records must be kept. You don’t need to have an accounting background or spend hours on record keeping or accounting for your farm; just purchase a farm management software, install it on your computer and there you are, you would be able to know how your business is doing and whether you are growing or not.
10. Health-: Just like you need regular health check-up to stay in good shape, the birds in your farm also need regular check-up. They need proper vaccines and medications to prevent diseases and promote growth. You should have a consultant, a veterinary doctor who would be in charge of giving vaccinations and providing proper health care for the birds. Chicks need more care after they hatch especially within their first 3 weeks.
11. Marketing-: Another factor to give consideration to is the marketing aspect of your poultry business. You have to find a way to reach your customers and this would be done by employing the right marketing techniques. Therefore, before you start a poultry business, you should really consider the marketing strategies which you would use to break into the market.
12. Projected return on investment
The incubation period of the domestic fowl is 21 days. You can start selling off your birds as early as 8 – 12 weeks but full maturity is reached between 20 – 24 weeks. The payback period of a poultry farming business is between 3 – 5 years.
Five Challenges of Starting a Poultry Farming Business
Poultry farming business is one of the most important and profitable aspect of livestock farming business especially in Nigeria. But like every other business, there are risks and challenges involved. Do you intend venturing into poultry farming but you would like to know the risks and challenges that you will be facing? Then i advice you read on.Challenges of Starting a Poultry Farming Business
- Poultry farming has a longer pay back period
- It is Labor intensive
- Pests such as rats, ants, etc and predators such as hawks, snakes can cause massive loss
- Lack of support from the government
Even the assumed agricultural loan the government provided cannot be accessed because of the stringent conditions attached. The only visible effort of the government is the recent ban on the importation of live or frozen poultry birds. So if you are interested in starting a poultry farming business, then you must be prepared to go it alone without looking to the government for help.
- High start-up capital
You cannot do well as a livestock farmer, especially poultry farming when you don’t have enough fund. You need money to purchase a land for the farm, to construct and equip the farm, to hire and pay staff/laborers and also to feed and provide healthcare for your birds. Without proper funding, you will struggle to keep your business afloat but with enough capital; business is made easier. So it is advisable that you do your financial analysis very well and ensure you have access to cash because nothing kills a business faster than lack of money.
- Outbreak of diseases
- Non availability and affordability of vaccines
- Adulteration and high cost of poultry food
As a final note, i believe you have gotten a clue on the challenges you should expect as a poultry farmer and the best solutions to them. So start now by creating a counter-strategy to tackle these challenges and success will be yours.
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