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Professional Poultry Business Plans and Feasibility Study

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Introduction

Firstly, VICKKY ARM NIG ENTERPRISES is an existing lucrative Integrated farming business, located at 14 Ovie Palace Road Effurun, Delta state Nigeria – Africa. Over the years, VICKKY ARM NIG ENTERPRISES has being involved in poultry farming business, which include layers, turkey, Broilers, cockerel, cassava and plantains. This farm has been in business for over 5years, contributing positively to her Nations food security. Similarly, VICKKY ARM NIG ENTERPRISES was legally registered in Nigeria on the 1st July 2016 with the Nigerian “Corporate Affairs commission”, (Federal Government Commission/agencies in charge of company’s registration in Nigeria) with RC number “BN 2427063”. The business currently runs her affairs on a Government given 3 pen poultry house with a capacity of over 1,500 poultry birds’ capacity. In like manner, VICKKY ARM NIG ENTERPRISES also has land spaces to expand the business. Our products are affordable, regular and reliable. We are building a sustainable business with avenues for growth that provides for the local communities. This act will bring developments in the forms of employment and infrastructural development for our ever increasing populace. Our major objectives among others is to increase food productivity generally before 2040.

Problem and Solution

Oftentimes, the demand for chicken and eggs in warri, Delta State, Nigeria – Africa is relatively high at present, couple with the quake in the economy that has propelled inflation in price of general products sold in the open market, which has encouraged price hike, imported inflation, harmful preservative chemicals that can cause harm to consumers and many more. To this effect, VICKKY ARM NIG ENTERPRISES seizes these opportunity to explore the Industry through massive production of cheaper, healthy and big poultry produces for the ever increasing population of Nigeria. This will serve as a penetrating strategy that will lurch other units in the farm.

Value

Furthermore, the unique value is to develop a sustainable cost effective system of production that enhances the environment which will be on the principle of synergy and negative entropy otherwise referred to as; zero emission research initiative (ZERI). That is to say that; the waste in one sector becomes an input in another sector thereby ensuring that nothing is wasted.

The Market

The total market size of poultry product market in our locality doubles the estimated five billion, four hundred and forty five million, one hundred and three thousand, six hundred and fifty five (5,445,103,655) in a year using the last 2006 Nigeria census with 5% growth rate at present. Several forecasters and estimators has predicted a double or even more population at present, coupled with the high consumption of poultry products in schools, homes, hotels, bars, eateries,conventions and even in parties.

Competition

Furthermore, VICKKY ARM NIG ENTERPRISES Five stop competitors are; Mecuzee Poultry Farm, Vivoch Nigeria Limited, Grow Food Resources Limited, Glorious Farms, Margret Farms. These farms have permanent farms, brand names and large market size, but their products are very costly, and most times, they cannot satisfy the demands of their customers on product delivery and customer management.

Risks and Mitigation

The economy inflation rate has also impacted on livestock production via high cost of poultry production especially feed cost, but other cheap local substitute feed are now available for livestock production. Secondly, when there is no stock/raw material for production, the workers will not work, yet they will receive their monthly salary. Lastly, this production has been developed in such a way that there will be continues production all through the year around, in other to mitigate these risk.

Management Team

Likwise, the management team is led by the chairman, who is the CEO of “UP LAYUS FARM NIG ENTERPRISES” of whom “Mr. Ajibade Mutiu”, is an acclaim owner. Finally, He will be working together with the board of directors and other staff beneath him to actualize the set broad objectives of UP LAYUS FARM NIG ENTERPRISES.

Capital Requirements

Firstly, the management team are seeking for the sum of three million, seven hundred and twenty four thousand, six hundred Naira (₦ (₦3,724,600.00k) to enable them expand and effectively run this poultry farming business. Similarly, these funds will be used for capital investment and general operating expenses. We expect to pay back within 2years and 4 Months of operation alongside its accumulated interest from our actual disposable income yearly. Finally, this refundable money/fund will be needed to establish other units in the farm.

Table 7; Fixed Assets / Capital Investment (CAPEX) in zero year

S/N	DETAILS	AMOUNT (N)
1.	Poultry House (Pen) (Estimated)	₦ 950,000.00
2.	Also, Crop Farm (Estimated)	₦ 50,000.00
	TOTAL CAPEX	₦1,000,000.00

READ Business plans | Starting a Poultry Farming Business | livestock feasibility

Table 8: General Operating Expenses / Expenditure

Type of Expenses	First Year (₦)	Second Year (₦)	Third Year (₦)	Fourth Year (₦)	Fifth Year (₦)
Operation expenses	₦2,332,600	₦2,682,490	₦3,084863.50	₦3,701,836.20	₦4,442,203.44
Salaries	₦ 1,212,000	₦1,393,800	₦1,602,870	₦1,923,444	₦2,308,132.80
Radio or Calendars N 10,000 (12)	₦60,000	₦69,000	₦79,350	₦95,220	₦114,264
Operation unseen Expenditure N 50,000 (12)	₦120,000	₦138,000	₦158,700	₦190,440	₦228,528
Total Expenses	₦3,724,600	₦4,283,290	₦4,925,783.50k	₦5,910,940.20k	₦6,864,600.24k

Source; May, 2019 field work

Table 10; Showing Performa cash flow analysis yearly for UP LAYUS FARM NIG ENTERPRISES

		PREFORMA CASH FLOW ANALYSIS – YEARLY
YEAR	TOTAL INFLOW		TOTAL OUTFLOW	ADDITIONS TO NEXT YEARS RUNNING COST	ACTUAL DISPOSABLE INCOME
1	₦6,160,000		₦3,724,600	₦ 730,620	₦1,704,780
2	₦7,084,000		₦4,283,290	₦966,244.95k	₦1,834,465
3	₦8,146,600		₦4,925,784	₦ 966,244.95k	₦2,254,571.55
4	₦9,775,920		₦5,910,940	₦1,159,493.94	₦2,705,485.86
5	₦11,731,104		₦6,864,600	₦1,459,951.20k	₦3,406,552.80

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Professional Poultry Business Plans and Feasibility Study

Professional Poultry Business Plans and Feasibility Study

Professional Poultry Business Plans and Feasibility Study on Poultry