1.

0 Executive Summary

In the past, people were nonchalant about breeding birds or cultivating crops for
profits but with the recent global burst in population and worldwide demand for food,
people are now beginning to realize the potential of providing the most important
basic need of man. Poultry farming is usually recommended for individuals who are
passionate about livestock farming.
We carefully analysis the various poultry business niche:
 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 etc
Another important factor we considered is the type of birds we will be focusing on or
wish to rear:
 Domestic Fowl or Chicken (Broilers and Layers)
 Turkey
 Guinea Fowl
This business plan summarizes our feasibility study and due diligence analysis of
poultry farming with major interest in egg production.
2.0 Factors That Makes Poultry Farming A Profitable Business
There are a lot of factors that make poultry farming business a profitable one but we
will be highlighting four major factors:
 Food is one of the basic needs of man regardless of the economic situation;
human beings must feed which makes poultry farming feasible.
 Nigeria has a population of over 170million and growing; that huge population
means a huge demand for food (egg and meat)
 With the increased awareness on health implications of red meat; there’s an
increased demand for white meat and birds are source of white meat
 The growing demonstrated commitment of the Federal Government at
encouraging youths to go into agriculture towards ensuring food sufficiency
3.0 CHALLENGES OF STARTING A POULTRY BUSINESS
 Poultry farming (especially egg production) has longer payback period if the
growth and sustainability of the investment will not be hindered
 It is labor intensive
 Lack of access to investment funds
 Pests such as rats, ants etc., other predators such as hawks, snakes etc. and
outbreak of diseases can cause massive loss
 Non-availability and affordability of vaccines
 Adulteration and high cost of poultry food
 The compelling need to ensure clean, safe and disinfected environment- When
the environment is dirty, disease and infection is inevitable. Birds like chicken
are very sensitive to environmental changes. If the poultry environment is not
properly taken care of, the chickens will be exposed to diseases like bacteria
infection
4.0 Poultry Location
A good location is vital to the success and profitability of any poultry farm. Our team
focused on sites with large availability of cheap land (not within residential area
because of the offensive odour it produces) and at the same time close to areas with
high population density while taking into consideration the security of the birds. After
much exhaustive search the best location that is favorable to us and would also be
favorable to our target market is Behind Papa’s Ground, Along Kubwa express
road.

5.0 Housing the Birds

Another important factor to consider is the poultry housing system and fencing
options. Poultry housing system determines up to 40% of the rate of success you
would achieve in poultry farming. A good housing system is very important for
poultry farms. Since we are running a poultry farm for commercial purposes and
intend getting the best out of the business with respect to high birds’ productivity and
efficiency. Then we have considered housing our birds using the intensive system
built at a particular angle; taking sunlight and wind into consideration.

6.0 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. We 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. The following
equipment will be needed for our poultry farm use:
 Chick tray
 Drinkers
 Big Round Filter
 Drinking Bow & Net
 Charcoal Pot
 Lantern big
 Bags of Charcoal
 Bags of Saw-dust
 Newspapers bundle
 Disinfectant and Sanitizers
7.0 Feeding Our Birds
Feeding is a major aspect of poultry farming. In fact, about 70% of our expenses
would go towards poultry feeding. Therefore, it is imperative that we figure out the
feeding aspects of the business before going into it. Even though producing our
feeds by our self is best recommended for large commercial poultry farms because
it will help us to save a lot of money on feeding costs. We can easily learn how to
make poultry feeds, purchase equipment and start producing feeds for our farm.
We can even make some extra income for our self by selling to others but it is
important that we get the right feed formula and ingredients that would enhance the
growth of our birds therefore we have decided to commence by buying already-
made poultry feed while we strive to build our capacity and internal competence at
producing right feed formula and ingredients.

8.0 Poultry Farm and Man Power

Operating a poultry farm is not labor intensive if the use of right technology and
strategy is employed. With respect to staffing, the number of manpower needed is
also dependent on the size of our farm per time. For the first two years of our
operation, the office of the Manager, Admin Officer, Accountant and Supervisor
will be coordinated by just one person to cut down cost while the operational staff
(e.g. Operation Staff, Security, delivery staff etc.) will be increased as situation
demands. Some sensitive and technical personnel requirement (e.g. Veterinary
Doctor) would be outsourced.

9.0 ACCOUNTING
We are committed to maintaining high accounting standard and record keeping in
order to track our performance and productivity. We don’t necessarily need to have
personnel with accounting background or spend hours on record keeping or
accounting for our farm; we have decided to just purchase a farm management
software, install it on our computer and there we would be able to know how our
business is doing and whether we are growing or not.

10.0 HEALTH
Just like we humans need regular health check-up to stay in good shape, the birds
in our farm also need regular check-up. They need proper vaccines and
medications to prevent diseases and promote growth. We have engaged the service
of 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 especially
within their first 3 weeks so we have decided that every new batch of birds stay in
a brooding room that best meet their sensitive needs for at least one week before
been move to the usual place.

11.0 MARKETING
Another factor to give consideration to is the marketing aspect of our poultry
business. We have devised several avenues to reach our customers and this would
be done by employing the right marketing techniques. Since the Federal Capital
City, Abuja is still heavily dependent on supply of eggs from Nasarawa, Plateau,
Kaduna, Niger states and Abaji to meet its growing demands for eggs; this
obviously creates a vacuum our product can fill due to price competiveness.
Therefore, we have designed our marketing strategies which we would use to break
into the market.
12.0 START-UP CAPITAL INVESTMENT
The poultry farming business is capital intensive depending on the scale, location and
type of management technology. Below is our projected Start-up Capital and six (6)
month running cost:
S/NO DESCRIPTION QTY UNIT AMOUNT (N)
COST (N)
1 Birds 1,000 260.00 260,000.00
Sub-Total 1 260,000.00
VACCINE (VACCINATION)
1 Marek 13,000.00
2 Lesota 1&2 3,000.00
3 Gunboro 1&2 4,000.00
4 Fowl Pox 8,500.00
5 Kamorrow 18,000.00
6 Fowl Typhoid 23,000.00
7 3inIEDS (ND+IB+EDS) 32,000.00
Sub-Total 2 101,500.00
DRUGS & TREATMENT
1 Brooding – Multivitamin, 50,000.00
Antibiotics etc. Deworming &
others
2 Debeaking 5,000.00
Sub-Total 3 55,000.00
FEEDS & ADDICTIVES
1 Chick Mash (Week 1-10) 25 4,200.00 105,000.00
bags
2 Grower Mash (Week 11-22) 87 3,900.00 339,300.00
bags
3 Layers Mash (Week 23-25) 40 4,300.00 172,000.00
bags
4 Additives 3Kg 5,000.00 15,000.00
Sub-Total 4 631,300.00
ACCESSORIES
1 Chick Tray 25pcs 250.00 6,250.00
2 Drinker 30pcs 250.00 7,500.00
3 Big Round Filter 40pcs 800.00 32,000.00
4 Drinking Bow & Net 40pcs 950.00 38,000.00
5 Charcoal Pot 2pcs 3,500.00 7,000.00
6 Lantern Big 4pcs 4,000.00 16,000.00
7 Bags of Charcoal 5bags 2,000.00 10,000.00
8 Bags of Sawdust 40bags 1,000.00 40,000.00
9 Newspaper bundle 3,000.00
10 Disinfectant and Sanitizer 15,000.00
Sub-Total 5 174,750.00
POULTRY FACILITY
1 Annual Rent 1year 300,000.00 300,000.00
2 Site preparation 600,000.00
Sub-Total 6 900,000.00
OTHERS
1 Personnel Cost (6 Months) 450,000.00
2 Running Cost 200,000.00
3 Miscellaneous 150,000.00
Sub-Total 7 800,000.00
GRAND TOTAL 2,922,550.00

13 Financial Management

For effective and efficient management of our financial obligations, we have adopted
the following financial principles towards ensuring successful operations:

 The business will not declare/withdraw any interest until the loan is fully paid
and the business break-even alongside our expansion plan
 50% of our revenue will be devoted to project operation cost
 25% of our revenue will be devoted to loan repayment
 25% of our revenue will be devoted to our project expansion plan
 Personnel Plan

For the first six (6) months of our operation, our personnel plan calls for
one Management staff (who will perform the combine roles of a
Manager, Admin Officer, Supervisor and Accountant) and an operation
staff that ensure proper care of the birds. Arrangement has however been
put in place to increase the number of operation staff to two (2) in the
 seventh (7) month once the birds start laying eggs and three (3) in the
ninth (9) month when a fresh set of 1000 birds will be delivered. A
security personnel will also be responsible for the safety of the birds and
staff.

0-6 Months 7-9 Months 10-24 Months

Management
Personnel N 240,000 N 150,000 N 900,000
Operation
Staff N 120,000 N 120,000 N 900,000
Security
Personnel N 90,000 N 45,000 N 300,000
Total Staff 3 Staff 4 Staff 5 Staff
Total Payroll N 450,000.00 N 315,000.00 N 2,100,000.00
 Financial Plan

Our goal is to have a profitable business starting from the third quarter of the
business. In achieving this; several measures have been put in place to broaden
our market and business space for the business to break-even before twenty-
four (24) months of commencement.

Revenues will continue to grow due to projected additional 1000 birds to be

brought in the ninth month that will begin to lay eggs starting from the
15months.

Revenue and growth projections are deliberately estimated low, while

anticipated expenses are exaggerated to the high side to illustrate a worst-case
scenario.
 We based our financial projections on the following assumptions to
demonstrate a worst-case business projection:

 800 eggs daily production from the 1000 birds

 24 days in a months
 Instead of the 26.66 crates of egg from the projected 800 daily egg, we based
our calculation on 25crates per day
 N 900.00 per crate
The projected monthly revenue from 1000 birds for the estimated 25 crates egg
daily for twenty-four (24) days of the month at N 900 per crate is N 540,000.00
monthly.

14 Projected Return on Investment

The incubation period of the layers is six (6) months. The layers will start laying eggs
after six (6) which will actively be sustained over a projected period of 18months.

0-6 Months 7-9 Months 10-15 Months 16-24 Months

N 0.00 N 540,000.00 N 540,000.00 N 1080,000.00 Monthly

15 Loan Repayment Plan

This business is projected to break-even alongside our expansion plan before twenty-
four (24) months of commencement. We therefore propose two loan repayment
options for our investors:

 Option A: The investor is to be paid 100% of the loan facility and …% interest
within 24months starting from the 7months of business commencement
  Option B: The investor is to be paid 100% of the loan facility (without
interest) within 24months of business commencement while the investor is
given ….% stake of the entire business

16 Financial Projection Summary

0-6 Months 7-9 Months 10-15 Months 16-24 Months

Projected Income N 0.00 N 1,620,000 N 3,240,000 N 9,720,000

Operation Budget N 962,550 N 810,000 N 1,620,000 N 4,860,000

Payroll N 450,000 N 315,000 N 840,000 N 1,260,000

Loan repayment N 0.00 N 405,000 N 810,000 N 2,430,000

Expansion Project N 0.00 N 405,000 N 810,000 N 2,430,000