UNIVERSITY OF BENIN

FACULTY OF ARTS
DEPARTMENT OF ENGLISH AND LITERATURE

SUBMITTED

BY

CHUKWU EDITH KOSISO

ART1400462

COURSE CODE:
CED300

COURSE TITLE:
ENTREPRENEURSHIP STUDY

JUNE, 2017.
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FEASIBILITY STUDY OF POULTRY FARMING

THE PROJECT SCOPE

The chickens and its products are very rich source of
protein which people need to maintain a healthy living.
It is generally believed that every child needs not less
than an egg a day for their normal growth. Poultry also
provide food for delicacies. Most people likes it that is why
poultry product sell very fast in high demand.
The benefits of poultry farming are so numerous that this
page will not contain it all. Apart from poultry being used as
food, poultry farming is equally profitable. A good poultry
farmer earns above 20million naira per annually depending
on how big the farm is.
Poultry is a bit capital intensive, it’s all like trading
money to make more money. We need to prepare this, our
capital being 750,000 naira, but we can make back all
invested capita if the business will be properly managed. We
should have an idea then build upon it. If we take this
₦750,000 capital to venture into this business we will have a
huge return.

THE MARKET
The market for chickens and other birds with their product is
very large, given that it is a common eaten food to people. We
could even say this market goes beyond the geographical
boundaries of a nation. In this industry there a lot of
competitors so it is important that they are considered in
every action taken. There are really no barriers in entering
into the business, so competitors can enter freely.
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Like i mentioned before the market for this is very high, but
it should be noted elderly people may not be included in this
market because of health conditions. Poultry farming does
not only means the business will focus only on the sales of
birds alone, they could also go into selling of eggs which is
also profitable and will yield higher return altogether for the
farm. It is important to investigate the product service
distribution, given that it is important for the products get to
the buyers. The price is also important since we do not want
to scare the buyers away with high prices.
Estimation of the size of this poultry farming.

Type of Number in Number of Total

customers each poultry demand per
category bought per month
month
Low income 18,430 0.4 7.372
Medium 5485 1.2 6,585
income
High income 192 2.25 432
Total 14,386
Estimation of the value of the market.
Type of Amount Cost per Number of Value of
customers of poultry of poultry the
bought poultry(₦) market
each time
(₦)
Low 0.1 3.9 7,372 28,751
income
Medium 0.15 4.1 6,582 26,986
income
High 0.45 4.8 432 7,882
income
Total 63,619

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THE FACILITIES
Land Acquisition
Given that poultry is an example of agriculture it
requires land as which is core, therefore land acquisition,
nature of the land and the location of the land is very
important. The land has to be affordable, it has to be close
and accessible by the customers, labour and it should be one
that has its raw materials close. We should not spend more
than needed money for the land given that our capital is
500,000 naira. Lands prone flood and erosion should not be
purchased. We have to get information about the land we are
purchasing before acquiring such lands for the safety of the
birds. The location of the land has to be accessible to the
customers, if not we may not be able to satisfy the customers
and this will mean loss for us. We could get a land for a
₦100, 000.

Building The Chicken House For The Birds

This is the second most important part of poultry farm
set up. The size and construction vary based on your need,
but make sure the building is spacious enough for the
chickens to run around. The house will be constructed in a
way that will be able to control the air and ventilation
movement to avoid frequent loss of birds through
suffocation. We will need to get a qualified engineer to do the
designing and building of the house. The cost for the
construction of the house could be ₦50,000.

Getting The Chicks

We could get a day old chicks for starting. When these birds
are bought they need to be given full attention for at least 7
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to 9 weeks of their lives. The chicks must be bought from
healthy sources. Their productivity depends on how healthy
they are. It is better to buy from hatchery, chicken hatchery
usually produce healthy chicks. The estimated price for a
day old chicken in Nigeria is 100 naira to 250 naira. We
could bargain since we are buying in large numbers. We
could purchase 100 chicks for 200 naira each .Therefore
the estimated cost for getting the chicks is 100 chicks ×
₦200 each =20,000.

Getting The Feeds And Water Troughs

Chicken feed is very important if you want good harvest. Get
the feeds that have the label for the kind of feeds you have
such as boiler starter, chick starter, layer starter etc. Avoid
cheap feed at have low nutritional value your chicks wouldn’t
do well with that. Chickens needs lots protein and pretty
much will not eat supplemental grains until they are older
and are not growing well. We could get feeds for 20,000.

Care For The Chicks

Caring for these chicks will also cost money as it is very
important for these chicks to be taken care of for them to
yield better returns. Lights must be available in your poultry
farm to keep the chickens warm. Look for reliable source to
supply the bird’s house with light and heat,

Employing Labour
Labour is key in every business so the availability of labour
this business is very important. The labour in this business
will be the one to take risks and lead the project into

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success, managing the business and making sure it does not
get drowned by its competitors. We can employ 20 graduates
in this farm to manage the activities of the farm. People will
be needed for store management, quality assurance, book
keeping etc.

THE FINANCE
Start-up capital
Land –₦ 450,000

Chicks -100 chicks × ₦200 each =20,000.

Equipment (feeds water troughs and others) =30,000

Training of staff = 90, 000
Initial production promotion = 100, 000
Staff salary for weeks = 3,000 Χ 20 graduates = 60, 000
Total = 750, 000

Operating capital
Estimated production cost for the farm in one year.
Fixed cost
Labour = 3000 × 20 graduates (who are employed in the
farm) = ₦60, 000

Loan repayment = ₦19898

Interest charges = ₦796

Maintenance of equipment (10% 0f value) =₦35

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Total fixed cost = ₦80,000

Variable costs
Fuel = ₦ 10000

Power =₦5000

Transportation distribution =₦5000

Advertising and promotion = ₦10000

Total variable cost = ₦30000

INCOME AND PROFIT ESTIMATION

The income is the sale price less 10% for retailer’s profit
(₦4.1- 10% = ₦3.7 per poultry)

Break-even point = fixed costs ÷ unit contribution

Unit contribution =sale price – (variable ÷ number sold)
₦3.7- (15580÷ 70 birds) = 218.87

Total fixed cost is ₦80000

Break-even point=₦80000÷2.18.89= 365.480

Therefore for this business to make profit it has to operate

above 365.89.