Poultry Farming Business Plan And Feasibility Study For Investors
Poultry Farming Business Plan And Feasibility Study For Investors is all you need to get that loan or grant. Intuitively, Poultry chicken farming business is the king of all poultry business in Nigeria. Most poultry farmers has enjoyed dramatic growth in the last forty years or so. Thousands of poultry producers in the country are proud of their industry. As a matter of facts, the business is a money milling machine for its operators.
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In like manner, poultry industry has suffered some setbacks lately. This is due to the fact that avian influenza, salmonellosis, and others has increase in recent times. There has always been a way out of vaccinating the birds before the outbreak.
Poultry industry has continued to thrive irrespective of the risk involved. Life is all about risk, including business and poultry business has come to stay.
Factors Influencing Poultry Farming Business Plan And Feasibility Study For Investors
In like manner, three factors have been primarily responsible for the remarkable development of the poultry industry.
- Firstly; the factor of demand for eggs and poultry meat.
- Secondly; the factor of profitability. Poultry rising has been relatively profitable enterprise when compared with other agriculture ventures.
- Finally; the roles being played by the poultry association of Nigerian. An umbrella body for all poultry farmers in Nigerian.
Hindrance/challenges on Poultry Farming Business Plan And Feasibility Study For Investors
- High cost of inputs
- Power outages
- Low purchasing power of consumers are the major hindrances to the rapid development of chicken industry.
Poultry Chicken rising is a wide spread and accepted enterprise, engaging the attention of millions of Nigerians. Why not start one today. There are several poultry business you can start up in a small, medium or large scale. Chris farm Nigeria is here to prepare a business plan and a feasibility study for you.
Broilers are the most preferred ones under poultry meat category. This can give you your money back between the spaces of 2-3 months. As a matter of facts, many Private companies are involved with farmers in contract farming for boiler meat production. This has reduce the effect of marketing problem on the farmer.
Broiler has been said to be a young chicken of below eight weeks of age, weighing 1.5 to 2kg body weight, with tender and soft meat.
SOURCING YOUR DAY OLD CHICK/LAYERS
Poultry birds which are hatched within the last 24 hours, are referred to as “day chicks”. The name; day old chick covers up for all birds, be it; layers, broilers or cockerels.
For you to get one, the farmers will need to make special request or place an order from the hatchery operator or hatchery company.
Layers are said to be birds that are reared for the purpose of egg laying. The popular brand are the brown and black layers of poultry eggs.
POULTRY FARMING BUSINESS PLAN INVOLVES
Prerequisite or few points you should bear in mind, before you start into poultry farming business.
- LOCATION – your poultry farm should be situated in an area where there is suitable climatic condition. Especially during summers, where the temperatures soar & affect the profitability due to high mortality rates. In like manner, your poultry should be situated away from other poultry farms preferably at a radius of 3-5kms.
- EQUIPMENT & LIVE STOCK – There are many Hatcheries which deliver day old chicks to your farm. You will have to check the one which closest to your farm and which has a proven ‘timely’ delivery record. This goes well with the feed companies too. You should opt for the latest feeding, watering & lighting equipment’s which will save on your labour cost.
- Furthermore, you should also be connected with good vet doctor. Likewise, you need Doctor who can visit your farm at regular intervals and who is easy approachable during crisis. Keep a schedule for vaccinations and medication in consultation with a Vet.
PREPARING FOR CHICK ARRIVAL
There are so many thing that should be in place before the arrival of your chick. So of which are;
- Poultry house should be cleaned and disinfected and allowed to rest for at least 7 days prior to chicks’ placement. Also, equipment such as feeders, drinkers, brooders etc. should be cleaned and disinfected.
- Fresh litter (straw, wood shavings etc.) should be spread over the up. Wood shavings are the common litter used in Nigeria. Litter provides insulation from the floor and will soak up moisture from the droppings. It also helps to prevent damage to the birds’ legs due to slipping on slippery surfaces. The depth of the litter should be 8 to 10 cm.
- Feed and clean water should be provided before chicks’ arrival. Feed may be placed in flat surfaces such as egg flats or box lids to encourage chicks’ to feed. The producer should introduce chicks’ to water by dipping their beaks in the water immediately they are placed on the floor. Chicks’ may be encouraged to drink and feed by hanging bright 100 watt bulb 1m above litter level. Furthermore, poults may be encouraged to eat by placing feed in small silver-coloured trays, and to drink by placing coloured marbles in the drinkers. The heat source should be on 24 hours before the arrival of poults.
The term brooding refers to the period of the chicks’ life extending from one day- old to about 3 weeks of age. Chicks’ are usually placed in brooder rings for the first 5 to 6 days. From 7 days to 3 weeks, they are given from 0.9 to 1.4 m2 (1 to 1.5 square feet) of floor space per bird. During this time, the chicks’ needs supplemental heat, special starter feed, and protection from exposure to disease. One way of reducing disease exposure is separately locating the brooding phase from growing and reproductive phases.
Approximately 100 square feet – 10 x 10 feet is required for raising a small group of 10-12 day old chicks’. Pens should be planned in such a way that provision is made for enough space for their growth
In like manner, temperature is critical and should be maintained as recommended. Temperatures should be checked manually at chick level.
Poults behaviour should be observed closely and frequently.
The main sources of supplemental heat to poults are cooking stoves, coal stove that uses coal and to lesser extent paraffin stoves. Brooder stoves provide chicks with supplemental heat from time of placement until they are relocated to growing facilities. The stove is suspended from the roof and can be raised or lowered as needed.
As a matter of direction, the early stages of brooding, it is ideal to confine newly hatched chicks to a smaller space to keep chicks close to brooder stoves for heat, feed and water for the first 5 to 7 days of age or longer in colder weather. Brooder guards usually consist of a 30 to 45 cm wide strip of hard board which has been cut to an appropriate length in order to form a ring 2.4 to 3.6 m in diameter. It is set up in the pen where the chicks are placed, and is removed once they are a few days old and are starting to jump out. The size of the guards is increased as chicks get older to give them enough room to move about or to move away from brooder as temperature gets higher than they can tolerate.
BROODER STOVE ARRANGEMENT AND TEMPERATURE
Intuitively, each brooder has 3 drinkers and at least 3 feeders. As mentioned earlier, to encourage day-old poults (DOP) to start eating and drinking, 3 to 5 clean egg flats or some newspapers may be placed around each brooder with feed sprinkled on each one. Drinkers are placed next to the feeders. Depending on the season, brooders should be adjusted in such a way that it provides a comfortable environment for the poults.
Furthermore, the height of the brooder stoves may need to be increased slightly each day after 2 days of age. Brooders in curtain type buildings do not have to be raised often, but need to be adjusted to keep poults from roosting on them and burning their foot pads. The temperature for DOPs should be around 35°C, as DOPs need plenty of heat. This temperature should be reduced by 1 °C every 3 days until a temperature of 21 °C is reached. Temperatures are used only as guides because the best way to adjust the temperature for the comfort of the poults is to observe their behavior. if poults crowd near the heat source and chirp loudly, the temperature is too low, adjust it. If they move well away from the heat source and start panting, they are too hot. Ideally they should be fairly quiet and spread evenly under and around the heat source.
In like manner, constant lighting at a fairly high intensity (20-50 lux) is required to aid chicks in getting used to their new environment as well as to find the water and feed. Light intensity is lowered to 5 lux after about 5-7 days. At this light intensity it is nearly impossible to read a newspaper in the shelter.
Similarly, the lower light intensity helps to minimize cannibalism. After 3-7 days, lighting programs that reduce the number of hours of light a day during the growing period can be used to reduce the incidence of various metabolic diseases and lame birds when raising broilers or turkeys. Reducing day length to 8-12 hours per day, even having lights on only during natural daylight hours should help reduce the number of lame and diseased birds. If continuous light is used, an hour of darkness should be provided daily to prevent crowding and piling up in corners (causing suffocation) when a power failure occurs.
Chicks are not the best starters in their life and will really need some tender loving care to get them safely through the first four weeks of life. The average mortality rate is 6-10% during this period. Young chicks by nature are reluctant to eat and drink in the first few days of life, primarily because of bad eyesight and nervousness.
Hence, they have to be force fed. Starve out problem is one of the major factors for early mortality in chicks. Likewise, special care has to be taken for supplying feed and water. In force feeding, milk should be fed at the rate of 100ml per liter of water and one boiled egg have to be given at the rate of one per 10 chicks up to fifteen days and that will compensate the protein and energy requirements of the chicks. Chicks can be attracted to the feed by gentle tapping of the container with the fingers. Colored marbles or pebbles placed in feeders and drinkers will also attract chicks towards them.
FEED FORM AND PHYSICAL FEED QUALITY
- Broiler growth and its efficiency is dependent on the quality of feed use. Use standard feed for your chicks.
- Broiler Grower feed is generally fed for 14 to 16 days following the Starter. During this time broiler growth continues to be dynamic. It therefore needs to be supported by adequate nutrient intake. For optimum feed intake, growth and FCR, provision of the correct diet nutrient density (especially energy and amino acids) is critical.
- Finisher Feeds
- Broiler Finisher feeds account for the major volume and cost of feeding a broiler. It is therefore important that feeds are designed to maximize financial return for the type of products being produced. Finisher feeds should be given from 25 days until processing. Birds slaughtered later than 42–43 days of age should be given a second Finisher feed specification from 42 days onward.
The use of either one or more broiler Finisher feeds will depend on:
- Desired slaughter weight
- Length of the production period
- Design of the feeding program
- Withdrawal periods for drugs will dictate the use of a special Withdrawal Finisher feed.
A Withdrawal feed should be fed for sufficient time prior to slaughter to eliminate the risk of pharmaceutical product residues in the meat. Statutory withdrawal periods for prescribed medicines that are specified in product data sheets must be followed. It is not recommended that extreme dietary nutrient reductions be made during the withdrawal period.
However if feeding a mash feed, feed particles should be sufficiently coarse and uniform in size. Mash feeds may benefit from the inclusion of some fat in the formulation to reduce dustiness and improve homogeneity of feed components.
- Firstly, broiler super starter; 0 – 2 weeks
- Secondly, broiler starter; 3 – 4 weeks
- Finally, broiler Finisher;5 –Slaughter
- Live weight 2.24 kg in 42 days
- Feed intake 4.00 – 4.20 kg
- Feed conversion ratio (fcr) 1.8 – 1.87
- Lastly, Mortality rate; 3% – 5%
Firstly, Poor physical feed quality will have a negative impact on broiler performance.
Secondly, Use good quality crumbled and mash feed for optimum performance.
Thirdly, When feeding mash, ensure a coarse uniform particle size is achieved.
SUCCESS KEYS SUCCESSFUL BROODING AND REARING
Firstly, Ventilation – Pheasants require fresh air to grow properly. Venting the brooder house to maintain a room temperature between 70-80 degrees Fahrenheit will ensure a good growing environment for the chicks. Intakes and outlets should be constructed with ducts which permit good air flow and good air circulation but exclude light. Wall fans, if used, may be thermostatically controlled so that they will vent air when the room temperature rises too high. Generally, the chicks need more ventilation as they grow.
Secondly, Temperature – Initially, young chicks are subject to “escape panic” and must be taught to stay close to the brooder. It is necessary, therefore, to encircle the brooder with a guard 16 to 18 inches high. The guard can be corrugated cardboard, metal flashing or any other rigid material. On day one it should be placed close enough to the brooder so that the chicks can move from the heated area to a cooler area if they desire. Each day thereafter the guard may be expanded to allow the chicks to roam over a wider area. On the sixth day, the guard is removed and the chicks allowed to roam over the entire floor area of the pen. If the chicks tend to crowd into the corners after the guard is removed, litter should be piled-up in such a way as to round off the corner. This practice will prevent crowding and smothering.
The brooding temperature during the first week should be around 100 degrees Fahrenheit at floor level near the centre of the brooder. The brooder should be turned on and the temperature stabilized at least 24 hours before the chicks arrive. Watch the chicks closely, especially for the first day or so. The height of infrared heat lamps should be adjusted so that the chicks will lie in a doughnut-like pattern around the centre of the heated area.
If they huddle together in a tight group temperatures should be increased a few degrees. If the chicks move out and are using only the very fringe of the area, reduce the temperature a few degrees. Increasing or decreasing temperatures is accomplished by raising or lowering the heat lamp. Decrease brooding temperature by five degrees at the end of the first week and again at the end of each subsequent week until the temperature has reached 85 degrees Fahrenheit. Heat can be discontinued after the birds are four weeks old.
Thirdly, Water – Water is the most important requirement of young pheasants. Cool, clean water should be available at all times. Replace the water in your fountains twice daily and clean the units to help prevent disease. Begin by using at least one quart jar fountain per 50 chicks.Place the fountain on a piece of hardware cloth to help keep the wood shavings out of the water. Coloured marbles or stones may be added to the water dish to prevent drowning. Stones may be removed from the water dishes after the fifth day.
Place water fountains near the brooder but not directly under the heat. As the chicks grow and drink more water, replace the quart fountains with one or five gallon fountains. Provide three one gallon fountains per 100 birds. If you are monitoring the chicks twice daily you will be able to see how much water the chicks are drinking at each visit. If the water fountains are empty at either of your visits, add an additional water fountain. After two weeks of age, 200 growing pheasants will require about 5 gallons of water per day.
Also, Feed – The feed given to chicks is extremely important. Chicken feed is not acceptable. The starting ration must contain 28 to 30 percent protein to meet the needs of the chicks for rapid growth and good feathering. Crumbles are satisfactory, but pheasant chicks cannot swallow pellets until they are three weeks of age. The starter feed should contain a coccidiostat, a medication to protect the chicks from the disease coccidiosis while in the brooder house.
At nine weeks old in the outdoor pens, the pheasants can begin eating grower feed in the form of pellets. Feed scratch grain the entire two weeks prior to releasing any pheasants. Scratch grain is cheaper than grower pellets and grains or seeds are likely to be found near release sites. Changes in diets and feed size occur gradually over a one week period by mixing the different diets or different size feeds together. Within first 2 days of arrival, your chicks do not eat much, instead provide constant water spread small amount feed in feed tray for them.
Finally, give your chicks intra-ocular vaccine (1/0) within first 3day of arrival some farmers argue that their bird have already inoculated from hatchery.
Pondering point: that you can’t be so sure hence prevention is far better than cure. If you are rearing a large number of chicks you need to sort out some members of your flock that are smaller in size/weight compared with the general number of birds. Do this to prevent these birds from becoming runt or stunted in growth, selected birds are separated from the rest flock and allowed to feed and grow at their own However if you feed entire flock adequately, you may not need to do any form of sorting since they will grow to fairly same size with very few exceptions
PRELIMINARY SAMPLE ON BROILER FARM BUSINESS PLAN
Poultry broilers farm is a project of livestock sector, in which, the day old chicks (DOCs) are raised on high protein feed for a period of six weeks. As a matter of facts, this business can start in rural, semi-urban areas in sheds. These sheds have all the required facilities for the broiler farm.
Furthermore, Broiler birds are sold to poultry traders. These wholesale markets are in urban areas. Sometimes, birds can also be sold directly to a shopkeeper in the urban markets. Broiler farming is a profitable venture depending on the demand of the meat in the market. Annually, six flocks of birds will be raised on the same premises of a farm.
Intuitively, poultry broiler meat is one of the cheapest source of animal protein available in Nigeria. The time required for raising broiler birds is lesser than that for big animals. The consumption of white meat is increasing due to growing health consciousness in the masses.
Total Project Cost
A broiler farm with a population of 10,000 birds established building sheds needs a capital investment of about N12, 000, 000 for construction. In addition to this, a sum of N5, 030, 000 is required as working capital, which will be used for purchasing day old chicks and raw material (feed & vaccines) etc.
Deep Litter House Floor Accommodation
The birds are transferred to the deep litter house after 20 weeks in the growers’ house. In case of broiler production, this is where the birds will domiciled until they reach the market weight of about 1.6kg in 55days.
The marketing of chickens follows the traditional channels of distribution. Generally, broilers are distributed in the market through middlemen/women and wholesalers. Their role is to identify a farm and negotiate the price. In some cases, the middleman provides Day Old Chicks and other farm inputs (feed, etc.) to the broiler farmers and then agrees to buy back the mature birds from them. Birds are transported to the urban market and are sold to retailers or market-street poultry shops. Birds are sold on live-weight basis. The time spent in getting broilers from the farm to the retail shop is brief.
Although collection and handling of birds has improved with the use of loader vehicles, but it is an established fact that greater the distance between the poultry producer and consumer, more complicated is the marketing system including their collection, handling and transportation to the consumer or processing plants. The processing plant produces dressed chicken (slaughtered and cleaned). However, a very small amount of dressed chicken is available in the local retail market. The integrated processing units distribute frozen and dressed chicken packed in whole or cut-ups to the consumer through retail shops under their brand names. The trick in marketing is quick availability of market information of chicken supply and demand, which will determine the selling price.
PROPOSED MARKETING STRATEGIES
The proposed integrated farm will strive to produce highest possible quality of the various products. The proposed farm will explore the following strategies:
SUPPLY TO MAJOR HOTELS, RESTAURANTS AND CATERING OUTLETS;
Furthermore, there are many tourist initiatives and developments in the cities that need to be catered for. Unfortunately, at the moment, they are under – serviced and still depend on the traditional distribution channels. The proposed farm will aim at meeting the needs of the outlets, and subsequently other parts of the country.
SUPPLY TO HAWKERS;
Live chickens or egg will be sold registered to hawkers on a regular basis. As most retailers have transport problems, the farm could entice them by delivering the chickens or eggs at their outlets
The farm may enter into a contract with medium or large-scale broiler users to supply stipulated number at specified periods. This will, hopefully, provide a steady market for the farm.
Project Brief for Layers farm business plan
Firstly, the livestock sub-sector is an important component of the Nigerian Agricultural Economy. Its importance derives from the fact that it is one of the key contributors to the national economy. For example, using the 1984 factor based data, the sub-sector contributed on an annual basis, a little over 5% of the Gross Domestic Product (GDP) between 1996 and year 2000. According to CBN, the livestock sub-sector is second only to the crop sub-sector under the sub-sector contribution to the general agricultural sector, and represents an average over 13% of agriculture’s contribution during the period under consideration.
In terms of specific output, the livestock sub-sector can be broken into product sub-groups such as, poultry meat, goat meat, lamb/mutton, beef, pork, milk and eggs.
Objective of feasibility Study
Similarly, the objective of this study is to undertake a detailed investigation of the technical, market, and financial feasibility of the project, bearing in mind the size of the target market (potential customers), the existing competition, project location, investment costs and financial returns of the project.
Total Project Cost
A layer farm with a population of 10,000 birds established building sheds needs a capital investment of about N14, 790, 000 for construction. In addition to this, a sum of N21, 610, 000 is required as working capital, which will be used for purchasing day old chicks/point of lay and raw material (feed & vaccines)N300,000 etc.
In this feasibility study, all the calculations have been based on a flock size of 10,000 birds, with raising six flocks per year. There will be a lag time of two weeks for cleaning and fumigation of the farm.
- MARKET ANALYSIS
Nigeria, with a population of about 130 million is grossly underprovided with the essential food component, which is protein. For example, data from the FOS, CBN, and FAO indicate that from cattle, less than 2kg of beef is available to an average Nigerian per year and just mere 4kg of eggs per annum is available to each Nigerian.
In fact, milk production has been nose diving or at best has remained constant since 1994.This scenario is compounded more so when the volume of egg supply is very low, being 10.56g per person per day as compared with the usual recommendation that an egg should be consumed by an adult per day. This recommendation would imply a crate of 30 eggs per month. This story also holds for other meat products including, chicken.
To ameliorate this problem of low-level of protein intake, there is the need for concerted effort, among the various stakeholders to bring about the massive production of protein based food items at competitive costs so that they would be affordable to the general masses. Aside from the other necessary economic reforms, massive investment poultry farming is one way of resolving the problem.
What is poultry farming?
Poultry farming is the commercial production of poultry birds, which include chicken, turkey, geese, pigeon, guinea and game birds. They are easy to produce, and have a high meat to carcass ratio. Hence, they are excellent products for meeting the protein needs of the populace.
Chicken constitutes about 90% of the poultry population in Nigeria. Consequently, poultry farming is generically used to refer to chicken farming in the country.
The main products of the proposed project include eggs, day-old chicks and poultry meat, which will be generated from, culled birds (i.e. layers and breeders), and broilers. Poultry by-products such as poultry droppings, poultry offal and hatchery wastes will also provide additional income to the project. Poultry dropping can be used as manure for vegetable gardening and feed ingredient in fish farming.
Indeed, a wheelbarrow of fresh poultry droppings costs between N50.00 – N80.00 in some parts of Lagos State at the moment. Poultry offal and other hatchery wastes when grounded are good supply of calcium for growing birds.
Hence, they can also be sold in their re-cycled forms. In brief, the proposed products of the projects will include:
- Main Products
- Farm Eggs
- Also, Poultry Meat
- From Culled birds (Layers and Breeders)
- Lastly, by-products
CONSUMERS OF POULTRY PRODUCTS
Generally, there are few taboos, religious or cultural practices that prohibit the use of poultry products in human diet. Hence, nearly all members of the Nigerian populace are potential consumers of poultry products.
Specifically, there is sustained high demand for live birds for home consumption or as gifts at the time of festivals such as Christmas, New Year, Easter, Id El-Fitri, Id-El Kabir etc. Also fast food operators such as hotels, restaurants, and supermarkets also have very high demand for poultry products.
Egg, in its own case, has a wide variety of utilization. Thus, it is used in the preparation of products such as chicken burger, scotch eggs, salad, and egg soup among others. Apart from home consumption, eggs can be used as leavening agent in baked foods, and as an ingredient in the manufacture of hair shampoo and for the production of egg powder that can later be incorporated into baby food.
Furthermore, poultry farmers, especially the ones specializing in broiler and layer production, are the potential consumers of the day-old chicks produced by the hatchery section. Point of lay for egg production involves the raising of the pullet chicks from 0 – 18 weeks. Such chicks must be obtained from reputable hatcheries.
Nigeria’s Poultry Market
While some countries are reputed to be important exporters of poultry products after consistently meeting local demand, Nigeria’s main problem is meeting its local demand for poultry products. Nigeria’s poultry market problems started in 1984 when the Federal Government banned importation of maize. This indeed contributed to steadily declining poultry production in addition to the effects of the structural adjustment program.
But the Nigerian poultry market had seen more prosperous times for the two decades after independence in 1960; poultry production grew substantially, peaking in 1982, with 40 million commercially reared birds. Since then, the bird population has dipped steadily, to an estimated low of 6 million in 1997. The new political dispensation has brought about a little improvement to poultry farming. Hence, the poultry population increased to 20 million in 2003.
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