BUSINESS PLAN FOR

SETTING UP OF POULTRY
FARM FOR THE
PRODUCTION OF EGGS

PRESENTED BY

APEX FARMS LTD

EXECUTIVE SUMMARY

OVERVIEW

Poultry Farming is a very lucrative business anywhere in the world. The demand for eggs
as rich protein source is unarguable. Apex Farms have been in the business of Poultry
Farming, specifically Egg Production for over 4 years. We pride ourselves as producers of
quality Eggs. Our products have a wide reach to clients within the South South and
South East Region.

THE BUSINESS/FINANCIAL PLAN

For this plan, we shall stock 1,000 laying birds with an initial investment of Two Million
Seven Hundred Thousand Naira (N 2,700,000) which will cover the Laying Birds, Facility
and Equipment, Feed and Daily running of the farm. The business will start yielding
positive cash flow around the 8th Month after business kick off. Within 12 Months,
monies invested shall be recovered. With further progress there are prospects for
increment in the stock number to 2,000 Laying Birds.

PARTNERSHIP

We seek a 50/50 partnership with willing investors. We have expertise in running the
farm and the investor’s interest will be protected by him providing a Farm hand, not
necessarily a professional, to live on the farm as a safeguard to his investment. This farm
Hand will be involved in the daily running of the farm, keeping records of Egg production
and sales and reporting directly to the investor as may deem fit.

OTHERS

Poultry business is one that needs patience, proactive management and promptness.
The basic necessities like Feed and Medications are very dynamic in their prices and
availability. During such seasons patience and promptness will be handy to help the
Farmer remain profitable. The Liter Material (droppings) from the birds is a proven and
viable source for nourishment. It is rich in Ammonia and Phosphorus hence a good
organic manure for plants. It is an ancillary source of income for the farmer also.
BRIEF INTRODUCTION ON LAYING BIRDS

There are usually two options for raising laying Birds. They are:

1. Brooding of Day old Chicks to the time they start laying at about 21 Weeks
2. Buying Point of Lay Birds at 14 - 15 Weeks
ADVANTAGES DIS-ADVANTAGES
Brooding of Day Old Chicks
The Farmer is in control of the required If the farmer intends to raise 1,000
Feeding, Medications and Vaccinations Birds for instance he will need to
needed to raise the birds to Maturity. purchase 1,050 birds to accommodate
He will ensure none is skipped. mortalities in the course of brooding
The waiting time for Brooding is usually
long and this season is the peak for Eggs
consumption.
Point of Lay Birds
The exact number of Birds the Farmer The Farmer is not in control of the
intends to raise is what arrives at the Feeding, Medications and Vaccines
facility and he takes over care from that needed for the Birds to Maturity.
point
The Farmer hits the ground and running
at a shorter time especially in the peak
season of egg consumption.

For this project we shall apply the Point of Lay method. In doing so, we will take
stringent measures to get the best Birds from a brooder. These measures are:

1. Visit the Hatchery (Brooder) to ensure good stock and brooding conditions. Also
to acquire the feeding, Medication & Vaccination History of the Birds.
2. Patronize Brooders with good reputation and history.
3. Repeat some major Vaccinations just for safe guards.
 ANALYSIS FOR 1,000 LAYING BIRDS
 NUMBER OF LAYING BIRDS – 1,000
 COST OF FACILITY – 350,000 PER ANNUM (CAN ACCOMMODATE 1,000 MORE
BIRDS FOR FUTURE EXPANSION)
 COST OF POINT OF LAY BIRDS AT 14 WEEKS – N1,500 X 1,000 = 1,500,000

Laying birds usually have an 18-24 Month laying life span from the time they hit 25%
production until culling.

The statement above can be further explained with this chart below

0 Week TO 21 Weeks – BROODING/POINT OF LAY (First Egg drops around 20 Weeks)

22 Weeks TO 25 Weeks – about 25% Lay (Stabilizing Period)

26 Weeks TO 30 Weeks – about 60% Lay (Appreciating Period)

31 Weeks TO 53 Weeks – about 85-95% Lay (Peak Period)

54 Weeks TO 76 Weeks – about 85 – 75% Lay (First Decline Period)

77 Weeks TO 99 Weeks – about 65 – 55% Lay (Second Decline Period)

100 Weeks TO CULLING – Sell as Spent Layers at this point

From 100 Weeks in lay and with good management the Egg production could still be
profitable especially if the period is not the peak period for sales of Old laying birds. The
farmer could maintain the Birds a little while more until the sales period is right.

From the above, Weeks 25 TO 100 is about 18 Months.

*Very Important Caveat*

The above analysis is done from experience and history. The data above are not definite,
the performance could be above or below expectation BUT management is the key to
good production and subsequent profitability especially when Brooding stock (The
Birds) is good.
 ESTIMATED CARE REQUIREMENTS AND PERFORMANCE ANALYSIS OF LAYING BIRDS

*All the estimates given are based on current prices and are not fixed*

ANALYSIS FOR 14 Weeks TO 21 Weeks – BROODING/POINT OF LAY

AGE IN MEDICATION/V NO. OF FEED (Quantity/Cost) COMMENTS/ PRODUCTION

WEEKS ACCINATION BIRDS OTHER (Quantity/Sales)
(Quantity/Cost) EXPENSES (N)
15 Lasota Vaccine & 1,000 3bags X 2,950 = N8,850 Lasota Vaccine NIL
Vitamins @ N X 7 = N61,950. (Grower is given on a
2,300 Feed) monthly basis
16 Komorov Vaccine 1,000 3bags X 2,950 = N8,850 Follow up dose NIL
& Vitamins X 7 = N61,950. (Grower
@ N 15,000 Feed)
17 Foul Typhoid 1,000 3bags X 2,950 = N8,850 Follow up dose NIL
Vaccine & X 7 = N61,950. (Grower
Vitamins Feed)
@ N 20,000
18 3-in-1 Vaccine & 1,000 3bags X 2,950 = N8,850 Follow up dose NIL
Vitamins @ X 7 = N61,950. (Grower
N25,000 Feed)
19 Lasota Vaccine & 1,000 3bags X 2,950 = N8,850 Farm Hand = NIL
Vitamins @ N X 7 = N61,950. (Grower N15,000
2,300 Feed). Transportation =
N22,500,
Fuelling of
Gen.= N7,000
20 Calcium Boost @ 1,000 3bags X 2,950 = N8,850 Prepare the 5 Crate @ N700 =N
N3,000 X 7 = N61,950. (Grower birds for laying
Feed) 3,500
21 Dewormer @ 1,000 4.5 bags (3.25 X N2,950 Fight Ecto and 20 Crates @ N700 =
N3,000 bags of Grower Feed & Endo parasites. N 14,000
1.25 X N3,250 bags of Gradual Eggs are sold at this
Layer Feed) = N9,588 + Introduction of rate because they
N4,063 = N13,651 X 7d Layer Marsh are new lays and
ays = N 95,554 are small
N 70,600 N 467,254 N 44,000 N 17,500
N 581,854 (Expenditure) N 17,500
(Returns)
Comments- As seen above, returns are very marginal. The project is still at the
Investment stage. Returns on Investment is Negative
 Analysis for 22 Weeks TO 25 Weeks – about 25% Lay (Stabilizing Period)

AGE IN MEDICATION/VA NO. OF FEED (Quantity/Cost) COMMENTS/ PRODUCTION

WEEKS CCINATION BIRDS OTHER (Quantity/Sales)
(Quantity/Cost) EXPENSES (N)
22 Anti Coccidial 1,000 4.5 bags (3.25 X N2,950 Coccidiosis is a Estimated @ 6
Medication @ bags of Grower Feed & common Poultry Crates / day X 7
N 1350 X 2 = N2,700 1.25 X N3,250 bags of disease. It is 42 X N750 =
+ Vitamins @ Layer Feed) = N9,588 + treated as it N31,500
N1,000 N4,063 = N13,651 X 7day arises. We
= N 95,554 project it may
occur at this
point
23 Lasota Vaccine & 1,000 4.5 bags (2.25 X N2,950 Farm Hand = Estimated @ 8
Vitamins @ N 2,300 bags of Grower Feed & N 10,000 for the Crates / day X 7
2.25 X N3,250 bags of Month 56 X N750 = N
Layer Feed) = N6,638 + 42,000
N7,313 = N13,951 X
7days = N97,654

24 Vitamins @ N1,400 4.5 bags (2.25 X N2,950 Petrol for Gen. Estimated @ 10
bags of Grower Feed & Set = N 4,000 Crates / day X 7
2.25 X N3,250 bags of For the Month 70 X N750 =
Layer Feed) = N6,638 + N52,500
N7,313 = N13,951 X
7days = N97,654

25 4.5 bags (1.25 X N2,950 Transportation Estimated @ 12

bags of Grower Feed & of Feed and Crates / day X 7
3.25 X N3,250 bags of Daily Farm 84 X N750 =
Layer Feed) = N3,688 + Movement = N N63,000
N10,563 = N14,251 X 15,000
7days = N 99,754

N 7,400 N 390,616 N 29,000 N 189,000

N 427,016 (Expenditure) N 189,900
(Returns)
Comments: There’s an improvement in returns but it’s still in the Negative. The figures
estimated here have a good chance of improvement. The estimates are actually a
modest representation of what could be achieved.
 Analysis For 26 Weeks TO 30 Weeks – about 60% Lay (Appreciating Period)

AGE IN MEDICATION/VA NO. OF FEED (Quantity/Cost) COMMENTS/O PRODUCTION

WEEKS CCINATION BIRDS THER (Quantity/Sale
(Quantity/Cost) EXPENSES (N) s)
26 Vitamins N 2,500 1,000 4.5 bags of Layers @ Farm Hand 20 crates X 7 X
N3,250= 14,625 X 7days = =N10,000 800 = N112,000
N102,375
27 Lasota Vaccine & 1,000 4.5 bags of Layers @ Petrol = N4,000 20 crates X 7 X
Vitamins @ N 2,300 N3,250= 14,625 X 7days = 800 = N112,000
N102,375
28 Water 1,000 4.5 bags of Layers @ Transport = 20 crates X 7 X
N3,250= 14,625 X 7days = N15,000 800 = N112,000
N102,375
29 Water 1,000 4.5 bags of Layers @ By this time the 20 crates X 7 X
N3,250= 14,625 X 7days = Eggs should be 800 = N112,000
N102,375 big enough to sell
at N800
30 Calcium Booster = 1,000 4.5 bags of Layers @ 20 crates X 7 X
N3,000 N3,250= 14,625 X 7days = 800 = N112,000
N102,375
N 7,800 N 511,875 N 19,000 N 560,000
N 538,675 (Expenditure) N 560,000
(Returns)

Comments: The figures represented above for Returns can be surpassed based on
production but for a “safe” estimation, we chose to work within that range hoping to
manage well so as to achieve a better Return.
 Analysis For 31 Weeks TO 53 Weeks – about 85-95% Lay (Peak Period)

AGE IN MEDICATION/VA NO. OF FEED (Quantity/Cost) COMMENTS/ PRODUCTION

WEEKS CCINATION BIRDS OTHER (Quantity/Sales)
(Quantity/Cost) EXPENSES (N)
Week 31 Lasota (5 X N1,300) 1,000 (4.5 X 7 X 22) X N 3,200 Period in view is 30 crates / day
= N 6,500 5 months and 2 (30 X 7 X 22) X N850
weeks =
TO Calcium= N 6,000 1,000 Farm Hand = N
82,500
Dewormer = N 1,000 The salary for
Week 53 6,000 the farm hand
should increase
from N10,00 to
N15,000 due to
increment in
production and
profitability
based on his
performance
too
Anticcocidial = N 1,000 Transport=
9,000 N82,500
Others – N5,000 990 Fuel= N22,000
990
990
N32,500 N 2,217,600 N187,000 N 3,927,000
N 2,437,100 (Investment) N 3,927,000
(Returns)

Comments: The investor sees his first true return/profit of the business (N1,489,900)
 Analysis For 54 Weeks TO 76 Weeks – about 85 – 75% Lay (First Decline Period)

AGE IN MEDICATION/VA NO. OF FEED (Quantity/Cost) COMMENTS PRODUCTION

WEEKS CCINATION BIRDS /OTHER (Quantity/Sales)
(Quantity/Cost) EXPENSES
(N)
Week 54 Lasota (5 X N1,300) 970 (4 X 7 X 22) X N 3,200 Period in view 25 crates / day
= N 6,500 is 5 months (25 X 7 X 22) X N850 =
and 2 weeks
TO Calcium= N 6,000 970 Farm Hand = N
82,500
Dewormer = N 970 There shall be
Week 76 6,000 expected
mortalities
and a
reduction in
Feed ration
Anticcocidial = N 970 Transport=
9,000 N82,500
Others – N5,000 970 Fuel= N22,000
970
970
N32,500 N 1,971,200 N187,000 N 3,272,000
N 2,190,700 (Expenditure) N 3,272,000
(Returns)

Comments: although there is a steady decline in production, the business is still

profitable. N1,081,300
 Analysis For 77 Weeks TO 99 Weeks – about 65 – 55% Lay (Second Decline Period)

AGE IN MEDICATION/VA NO. OF FEED (Quantity/Cost) COMMENTS/ PRODUCTION

WEEKS CCINATION BIRDS OTHER (Quantity/Sales)
(Quantity/Cost) EXPENSES (N)
Week 77 Lasota (5 X N1,300) 950 (3.5 X 7 X 22) X N 3,200 Period in view is 20 crates / day
= N 6,500 5 months and 2 (20 X 7 X 22) X
weeks N850 =
TO Calcium= N 6,000 950 Farm Hand = N
82,500
Dewormer = N 950 There shall be
Week 99 6,000 expected
mortalities and
a reduction in
Feed ration
Anticcocidial = N 950 Transport=
9,000 N82,500
Others – N5,000 950 Fuel= N22,000
950
970
N32,500 N 1,724,800 N187,000 N 2,487,850
N 1,944,300 (Expenditure) N 2,618,000
(Returns)

Comments: Though the Profit margin has reduced greatly, the business is still profitable.
N673,700
100 Weeks TO CULLING – Culling is when the birds stop laying profitably. From this
point, the farmer could boost production by increasing supplements intake so as to
make profits for another 3 to 4 weeks after which sales is inevitable.

At this point an estimated 950 birds would still be alive, and up for sales by the farmer.
Healthy looking, fleshy birds could go for as much as N1,400 each. That would mean
950 X N1,400 = N1,330,000.

At this point the Farmer could reinvest into the business or decide to use this lump
profit for something else.

SUMMARY

The figures presented in this plan are very modest, and have a good chance of been
surpassed. At Apex farms we have the experience and expertise to optimize resources
and performance in the business of Poultry Farming.