ADA-EGO VENTURES

POULTRY BUSINESS PLAN

CHIDUME AUGUSTINA
Phone: 08075550805
Number on the register :118

NAME OF THE BUSINESS: ADA-EGO

VENTURES
BUSINESS LOCATION:AKANATOR OMOR,
AYAMELUM L.G.A. ANAMBRA STATE
PROMOTER: CHIDUME AUGUSTINA
GENDER: FEMALE
 STATE OF ORIGIN: ANAMBRA
STATUS OF BUSINESS: NOT EXISTING
TYPE OF OWNERSHIP: SOLE PROPRIETOR
GRANT AMOUNT: 8,000,000
PHONE NO: 08075550805

TABLE OF CONTENTS

PAGE

PROFILE PAGE Executive Summary

1.0 Business Overview
• Description of the Business
• Vision And Mission
• Value proposition
 • Critical Success Factor
• Current Status Of Business
• Business Environment and Description Of Business Industry
• Contribution To Local Economy
• Environmental Impact Consideration

2.0 Marketing Plan

• Description Of Product
• Product Packaging And Delivery
• The Opportunity
• Pricing Strategy
• Target Market
• Distribution Strategy
• Promotion Strategy

• Revenue Estimates

3.0 Production/Operation Plan

• Description Of Location
• Raw Material/ Consumables
• Production Equipment
• production Process
• Production Cost
• Stock Control process
• Preliminary Expenses
• Production Plan

4.0 Organizational and Management Plan

Ownership of The Business
• Profile Of The Entrepreneur
• Key Management Staff
• Details Of Salary Schedule

5.0 Financial Plan

• Start-Up Capital (Project Cost)
• Financing Plan

6.0 Business Industry Risk and Mitigating Factor

 • Business Risks

• Business Mitigation

7.0 Profitability and Viability Analysis 8.0 Justification and Conclusion

PROFILE PAGE
 NET PROFIT AFTER 5,861,729.70

TAX
14.82 %
GPM

NPM 12.9 %
ROI 40.1 %

EXECUTIVE SUMMARY

We are a business in livestock production particularly poultry farming. I plan to build a

strong market position in the town, using my industry experience and mild competitive
climate in the area.

This business will be owned and managed by myself. I have in the past few years, built
extensive experience in poultry management, sales, marketing, management, finance
and administration. I intend to hire full-time key staff to handle customer service and
day-to-day operations. The poultry will provide freshly processed chicken meat at all
times during business operations.

The business is currently not in existence but to start the business i will use the grant to
construct new pens, buy Battery cages and other equipment, buy my raw materials, get
my farm fully set for production of birds per batch, as well as pay my staff.

The business risks includes; Outbreak of diseases, limited availability of drugs and
vaccines, high loss of input especially feed, Market glut; when demand falls and supply is
excess , Poor Infrastructure and Weak enforcement on ban of poultry produces
importation. We however hope to mitigate these risks by; vaccinating the birds properly
and providing biosecurity for the farm, timely procurement of drugs and vaccines and
from a reliable source. It is our plan to formulate our own feed overtime, build a large
clientele base within and outside the Anambra to enable us have ceaseless demand. We
also plan to take up farm insurance policy and have easy accessible location
My business will benefit the society by helping to bridge the gap between high demand
for poultry products and supply, jobs opportunities we shall create including
contribution to the National GDP because we would pay our tax.

Finally, this business has a high potential for growth and sustainability.

CHAPTER ONE: BUSINESS OVERVIEW

1.1 Description of the Business

Our Poultry Services is into the rearing of Broilers/Layers. Broilers are gallinaceous
domesticated fowl, bred and raised specifically for meat and egg production. The raising
of this chicken for sale as whole live chicken and as slaughtered meat and egg
production is what we will be doing as our business. We are currently hoping to rear at
the capacity of 2000 broilers per batch and they are a source of white meat which health
loving individuals prefer to consume than red meat.

1.2 Vision and Mission Statement

VISION STATEMENT
Our vision is to become a brand name in supply of white meat to the residents of
Anambra State and Southeast.
Our mission is to grow an organization that is concerned about the welfare of its staff,
make profit and create a sustainable brand
1.3 VALUE PROPOSITION

Winning the hearts and tastes of our beloved consumers and establishing a brand image
of the company through heavy marketing campaigns, integrity and reliability.

• Maintain 50% gross margin ratio.

• Becoming the "Best and most hygienic poultry producer in Onitsha following all
health standards laid down by the Government
1.4 Critical Success Factor

• Good chicken breed

• Entrepreneurship Training by Onitsha Chamber of Commerce,
Industry, Mines and Agriculture

1.5 Current Status of Business

Our farm is not in existing yet but look up to your assistance for start up .

1.6 Business Environment/Industry Analysis

Poultry industry in Nigeria occupies a prominent position as a major source of animal

protein supply to the citizen. Over the years, the growth of poultry industry has followed
a pattern closely dictated by the economic fortunes of the countries. USDA, (2013)
reported that commercial poultry production in Nigeria was estimated at about USD 800
million. Poultry sector contributed about 25% of the agricultural domestic products of
the Nigerian economy (FAO, 2010). USDA(2013) currently rated Nigeria as the leading
country in Africa with respect to eggs production, but fourth in broiler production, this
report indicated that Nigeria still have to improve on their production with respect to
broiler birds.

Poultry production is gaining popularity in the developing countries due to its role in
bridging the protein malnutrition in their diets, economic empowerment of the resource
poor segment of the society (Wishart,2002). Poultry production is practiced in all levels
ranging from subsistence to large scale commercial operations. Poultry meat and eggs
are the most consumed animal protein; unrestricted by any religion or culture in
Nigeria. It was recorded that the poultry industry contributed about 25% of the
country's Agricultural GDP (FAO, 2010). Nigeria presently produces above 550,000mt of
poultry meat per annum and 700,000mt of eggs according to (FAO, 2015). Despite this,
Nigeria is far from meeting her domestic demand when compared with developed
countries that involved in poultry production. According to FAO, It was reported that
poultry expansion was 3.2percent against global increase of 2.2 percent; Nigerian supply
had increase beyond her domestic borders. Countries Cameroon, Togo, Benin, Benin
Republic, Niger and many of her neighbouring Countries are been supplied, but despite
that Nigerian supply with respect to broiler production has not been consistent
compared to layers production. The poultry industry has a large capacity in Nigeria to
create employment. The potential in Nigeria is great and only the farmers that are well
developed and financially equipped can actually fill the gap and harness these
opportunities.

Poultry offers the greatest scope for increasing the quantity and quality of animal
protein. Poultry meat and eggs account for about 30% of total livestock output in
Nigeria, of which eggs account for over 80 percent. Commercial poultry is well
established in the country with substantial infrastructure (poultry houses, feed mills,
hatcheries and processing plants) already on ground. However, most of these assets
became idle for reasons associated with high cost of strategic inputs and working capital
as well as competition from cheap imports. The embargo placed on the importation of
poultry products in 2002 by the Federal Government is aimed at encouraging local
production. The challenge therefore, is how to produce poultry products at sustainable
levels in order to bridge the protein supply gap in the nearest future.

Since the 1960s, the global production of poultry meat has been growing faster than
that of any other meat in both developing and developed countries. This growth pattern
usually continues because of the inherent efficiency in feed conversion and the lower
production costs associated with intensive production. Such production efficiency is
particularly beneficial to developing countries, which tend to have lower resource
limited agricultural.

1.7 Contribution to Economy

This project when implemented properly shall offer huge benefits as follows:

• Jobs will be created and will enhance the society

• Improved standard of living and sustainable wealth for the owner and his family
• Promotion of national strategies aimed at wealth and job creation, economic
empowerment and sustainable development such as Millennium Development
Goals (MDGs) and adding our own quota to the National GDP
•
1.8 Environmental Impact Consideration

The smell from poultry waste can attract rodents and insects that may become harmful
to human and crops around therefore no indiscriminate dumping of refuse will be
carried out by us, and we would follow all laid down rules as prescribed by Anambra
State Environmental Protection Agency, ASEPA, to avoid polluting the environment in
anyway. Instead the waste form our poultry farm will be used as manure for our farm .
CHAPTER TWO

MARKETING PLAN

2.1 Description of Product

Our product is live broiler chicken and layers slaughtered packaged and frozen chicken
in parts or whole as best quality products. So in order not to raise scepticism of our
slaughtered chickens being already dead ones, customers can come to the farm to see
and choose their chickens and have them slaughtered before them.(point and kill).

2.2 Product Packaging and Delivery

We will sell our live chicken in our farm or deliver to customers at their door step if they
demand as long as cost of transportation is factored in the cost. If we are given this
Grant and we procure a delivery vehicle, we shall be delivering to places without that
additional cost factored to our customers. We also offer slaughtered well packaged
chickens in branded nylons.

2.3 The Opportunity

The increasing population rate, Government policies on ban of food items into Nigeria
coupled with the fact that a lot of people now see poultry meat (white meat) as a
healthier diet option; have led to high demand for chicken meat in recent times and
supply has not adequately met demand in my locality. We hope to come in and help in
meeting this need.

2.4 Pricing Strategy

We will carry out constant market survey, we will use the penetration pricing
strategy, setting our prices a little lower than that of our competitors. we have
below a proposed price list which is fair enough not to incur loss on our part.

PROPOSED PRICE LIST

S/N Products Description/details Proposed Selling Price
(N)
 1 Poultry Meat Live broiler 2,600.00

2 Poultry Fresh whole Chicken meat 3,200.00

3 Layers Hole chicken 1,800

4 Eggs Per create 1000

2.5 Target Market

The residents of Anambra state are our target market; we shall sell our poultry products
to families, distributors, consumers and other business forms and organizations like
hotels and restaurants.

2.6 Distribution Strategy

We make use of distributors available in different parts of Onitsha as well as provide
direct sales to end consumers and businesses like hotels and restaurants. We will ensure
that demands are met on time and we offer discounts for bulk purchase. We intend to
intensify our advertisement activities as we expand and increase our production volume.
We shall adopt the following strategies: 2.7 Promotion Strategy
Advert/Promotional strategies Budget Frequency Details and budget
justification

Flyers 20,000 Annually This will be used for

advertising the business
every year
 Online presence 20,000 Annually The world is going digital
and everything online has a
wider reach and spread we
intend to make good use of
this for our expansion

Distributor Discounts 10,000 Annually This is to grow and

maintain our distribution
network across
Anambra state.

Total 50,000 Anambra

2.8 Distribution Strategies/Sales Method

We will sell our poultry products on our farm, we also deliver where it is of necessity

2.9 Strategic features and pricing of Products

a) Attracting new customers/distributors by using attractive discounts

b) Providing delivery services in a unique/hygienic way

2.10 Revenue Estimate

If this fund is granted us, we expect an annual revenue estimate as represented in the
table below.

S/n Product Unit price N Quantity Sales per batch Annual sales N

1 Live broilers 2,800.00 1300 3,640,000 14,560,000

 2 Fresh whole 3,200.00 2,400 7, 680,000 30,720,000
chicken

Total 3,700 13,510,000 45, 280,000

CHAPTER THREE

PRODUCTION/OPERATIONAL PLAN

3.1 Description of the Location

The farm is located at Akanator Omor, Ayamelum LGA , Anambra State. Our choice
of location is informed by factors such as a) Closeness to target market cluster
b) Access to raw materials and good transportation network
d) Bulk delivery for both individual and commercial needs alike.
3.2 Raw Materials/Consumables needed/Supplies
List of Raw materials
Material Description/uses Key supplier/source

Broilers/layers Chicken known for meat production/egg Local farmers

production

Feeds Food for farm poultry Vital feeds

List of Consumables
Materials Description/uses Key supplier/source

Buckets and bowls, feeders and For scooping water and serving Local market
drinker feed

Drugs Used to treat Vet Doctor

infections/Diseases

3.3 Production Equipment/Capital Expenses

List of Capital Expenses

S/N EQUIPMENT DESCRIPTION/USES SUPPLIERS

1 Poultry house Cage for housing poultry birds Builders

2 Deep Freezer For preservation of slaughtered Haier

chickens Thermocool

4 Generator Alternative source of power Haier

supply Thermocool

5 Measuring Scale For weighing the chickens and Market

feed

6 Wheel Barrow For carrying feed around the Market

farm/ removing waste

7 Feeders For feeding the chickens Local market

 8 Drinkers Containers for serving water to Local market
chickens

9 Geepee Tank For storing the pumped water Building

Material
Market

10 Shovel For removing waste Building

Material
Market

S/N particulars Units Cost per Unit Value Life span Monthl
required (#) estimation Depreciati
(months)

1 Poultry house 1,000,000

(Land)

2 Construction of poultry 1 737000.00 737,000

3 Poultry (battery cage) 2 300,000 600,000

4 Deep Freezer 2 150,000 300,000

5 Generator 1 285,000.00
285,000.00

Depreciation Schedule

3.4 Production/Service Process/Techniques

6 Measuring 2 24,000.00
48000
Scale

7 broilers 2000 200 400,000

8 Wheel Barrow 4 20000 80,000

 9 Feeders 40 80,000
2000.00
10 Drinkers 40 84,000
2,100.00
11 Geepee Tank 4 75,000 150,000

12 Shovel 10 1400 14,000

13 Feed 200 5600 1,120,000

14 Drugs 20 1200, 77000

1400

1250
Total

4,975,000

The building of the poultry house will be the first step in preparation for the
arrival of the birds, each bird will be given a 2 x2 feet space to move about,
lighting and ventilation will also be considered to checkmate mortality rate.
The broilers will be brought in as day old chicks. Adequate ration of feed will
be given to enable chicken attain the right size. Broilers will be kept to 8
weeks before sell off will begin

3.5 Product/Production Costing and Capacity Details

S/N Raw material Unit Cost per unit N Value
Required
N

1 (Broilers)Day old chicks 2000 300 600,000

Total 600,000

Consumables
 S/N Materials Unit required Cost per unit (N) Value (N)

1 Drugs 1 sachet per

100 birds, so Dewormer 77,000.00
4000 birds is =1,200
= 20 sachets
Anti protozoa = 1,400

Chick formula =
1,250

2 Feed (25kg Bag) 200 8000 1600,000

4 Plastic 50 30,000
Bowls/Buckets 600.00

TOTAL 1,630,000

3.6 Stock Control Process

Our operations shall be recorded, reviewed periodically and appropriate routine as well
as contingency planning effected. Relevant accounting and inventory books shall be kept
and made available on request to stakeholders for informed decision making and
execution of statutory obligations like tax payment.

3.7 Preliminary Expenses

S/N Item Description Amount

1 CAC Registration and legal For securing a business name In view

fees

2 L.G.A permit and licensing Permit to operate in the local govt. 36,000
Area

3 Trade association levy For union membership 40,000

 4 Business Training Expenses spent on securing knowledge 80,000
of my business and for certification

Total 156,000.00

CHAPTER FOUR

ORGANIZATIONAL AND MANAGEMENT PLAN

4.1 Ownership of the Business

It is a sole proprietorship business. I am aware that all the profits and losses are to be
borne by I alone but I chose the one man business to enable me have total control and
watch my business grow, I want to take responsibility of the success or failure of my
business.

4.2 Profile of Entrepreneur

is the owner of the business. I am a well trained entrepreneur. I desire to become

financially independent and self-employed that is why I enrolled in the Entrepreneurship
programme to become not just a business owner but a certified Entrepreneur. I went
through practical training before I ventured into poultry farming and I have ran my
poultry farm/business for over four years, improving and innovating on it.

4.3 Details of Employees

Our management team is made up of the following positions;

4.4 Key Management Team
Positions Skill and Qualification Functions

Chief Executive Officer certified entrepreneur General Management

/supervision of the entire
business operations and
marketing/business
development.

Farm manager Minimum of OND 1) Assisting the MD/CEO in

general operations.
2) Daily coordination and
supervision of all business
activities including
sales and purchases.
3) Preparation of farm
records.

Accounts clerk B.Sc or HND 1) Handling of all financial

activities /operations
financial activities.

4.5 Details of Salary Schedule

S/N Designation Monthly Salary Annual
Salary

1 Managing 25,000
Director/Chief 300,000.00
Executive Officer

2 Farm Manager 20,000

240,000.00

3 Accountant 25,000
300,000.00
 4 Sales officer 15,000 180,000.00

TOTAL 100,000 1,2000,000

CHAPTER FIVE

FINANCIAL
PLAN

5.1 Financing Plan

Source Amount (N) % of Total

Grant Proceeds ₦ 8,000,000 ₦

8,000,000

Total Funds required ₦7,961,000 ₦ 7,961,000

5.2 USE OF GRANT
Grant Amount ₦ 7,961,000.00

Use of Grant For procurement of galvanized battery cages for

my chickens, acquire more day old chicks and
feed/medication, hire more staff and pay their
salaries and execute other operations.

CHAPTER SIX

RISK FACTORS AND

MITIGATING FACTORS

Every business has its associated risks, Poultry business is not an exception.

The business risks thereto and adequate mitigation strategies are stated in the following table.

S/N RISK Mitigating Measures

1 Extreme cold can lead to loss of Adequate temperature regulating procedures such as;
young chicks heater, bulb and lantern in place.

2 Feather pecking Adequate spacing of birds, feeding them appropriately in

quantity and quality, isolation of sick and weak birds

3 Disease Outbreak Good vaccination and medication programs will be

adopted.
 4. Pilfering and Theft: We will put security measures such as having a good
record and data system.

We will also hire security personnel, ensure our workers

are well paid and rewarded for performance

CHAPTER SEVEN

PROFITABILITY AND VIABILITY ANALYSIS

Gross Profit Margin = (₦ 6,712,000.00

/ ₦ 45, 280,000)*100 = 14.82%

Gross Profit Margin measures the business efficiency.

Net Profit Margin = (₦5,861,729.70/45, 280,000)*100=12.9%

Net Profit margin measures the operating efficiency.

Return on Investment = (₦5,861,729.70/₦14,607,000.00)*100 = 40.1%

ROI measures the profitability in relation to the assets employed in the business.

CHAPTER
EIGHT

JUSTIFICATION AND CONCLUSION

Poultry meat and eggs are the most consumed animal protein; unrestricted by any
religion or culture in Nigeria, going into this business will therefore give us a large and
constant customer base. If this fund is granted us and our plan is fully put in place, a
successful survival of the first year of operating on our projected capacity will give us a
smooth sail in this industry.

Conclusion:

In view of this we request that the Grant sum of ₦8,000,000 be granted to enable us
begin this business.