COMPLETE POULTRY FARMING BUSINESS PLAN FOR 2,400 LAYERS

FARM

1.0 EXECUTIVE SUMMARY

Table Egg production via the process of raising poultry layer birds from Point Of Lay (POL) for
the purpose of producing table eggs and birds using battery cage. 2,400 POL birds, feeding and
medication of the birds and sales of eggs and spent layers produced from them in the first one
and half year after construction, increasing the number thereafter 5,000 Birds in the second year
utilising Day Old Chicks, 10,000 capacity in the third, and 20,000 in the fifth.

In the first year, at peak production, the farm should produce about 60 crates (30 eggs/crates) per
day and generate N1.1million in revenue and about grossly N0.4million as gross profit after
deduction of cost of feed on monthly basis. Spent layers would be sold at the end of one year of
lay and utilised in the purchase of replacement birds. Annual revenue could be up to 16 million
naira and profit grossly could be up to 4.5 million in the first year. At full capacity, the project,
housing 20,000 laying birds would generate upto 70 million naira in revenue and about N17.0
million on net profit every year.

1.1 Business Overview

Egg production is the most popular form of poultry farming because egg consumption cut across
wide divide. Poultry production come in different forms ranging from parent stock breeder meat
(broiler/production), egg production, Quail production, turkey production, ostrich farming, duck
farming, Geese farming and ornamental bird rearing among other. The business could also come
in specialisation such as brooding, Point of Lay production, liquid egg package, egg trading, cold
room marketing, day old chicks, feed milling, birds transportation or egg deport business.
Because of the vastness of this industry, entrepreneurs focus will be on an aspect and with time
add other aspect either for vertical or horizontal integration in Nigeria, this industry is still
grossly untapped and any part of the industrial possess great potential. Specialisation and
continuous improvement on skills is always paramount.

Poultry industry is a multi billion naira industry: The major hindrances to the growth of the
industry in Nigeria ranges from absence of credit, high interest rate, high cost of maize,
unavailable electricity which is important for cold rooms, incubators and operation of automated
cages. Because of the fallow nature of the industry in Nigeria, the prospect is high. Right now
the demand for egg, broiler meat, day old chicks, day old poult etc remain overwhelmingly high.

1.2 Description of Business

Mr Poultry’s plan to participate in chicken egg production. The business entails keeping of
chicken from (Day old to) fourteen weeks when the growers will be transfer to cages. The
caged birds at the age of 19 – 22 weeks start to lay eggs. The eggs are packed in crates of 30
packs, transported to the city where they are distributed to customers. The laying birds by the
age of 60 to 75 weeks of laying, are sold out as spent layers for meat.
1.3 Vision and Mission
- To produce nutritious eggs, generate employment, and create wealth for investor.

Mission:

-Build a mechanised poultry that is efficient. And rewarding .

1.4 Value Proposition

Poultry Production for wealth creation.

1.5 Critical Success factors of the business

A. Finance: Fund must be available as when needed according to plan to avoid creating stress
factors which would cost so much in revenue loss

B. Expertise: The poultry industry is knowledge based home employment of expertise is

imperative. Consultancy is paramount. Training and retraining of staff is sacrosanct no mather
how small the level and acquisition of knowledge of modern trend is a factor to growth.
C. Housing: Proper ventilation and spacing is a critical success factor. Position your house to
give the birds maximum ventilation and reduce heat.

D. Biosecurity: Disease entrance and spread are as a result of any form of breach in
biosecurity. Foot bath, car bath, prohibition of un authorized persons etc.

E. Water: Watering and water source is of great importance. Foul water source or water getting
contaminated in poultry house signifies that the farm will fail. Water should be managed to
ensure that clear and clean water is available for bird ad libitum.

F. Nutrient: Most farm fail because they wanted to reduce cost of feed by compounding farms
should only venture into self compounding on ground with available experiment. All nutrients
must be readily available in the market to prevent malnutrition.

G. Sales: Egg produced must be sold. Proper marketing with vigorous advertisement will
ensure the product is made available to the target market.

H. Management: Pilfering shrinkages, indulgence, misappropriation are few of the several

epidemic that constantly plaque poultry in Nigeria. Workers steal eggs, birds, feed, money and
even drugs if they are not properly monitored. Sales agents and drivers could sell at different
prices and report differently. Effective management of this ends are critical factor.

I. Administration: . At full capacity, Management is separated from administration, when the

owner is not directly involved in day to day management. Absentee farming is hazardous.
Someone with stake in the venture should give quality time to it to survive.
1.6 Current status of the industry.

The poultry industry in Nigeria is largely untapped.

1.7 Contribution to National and local economy.

The poultry will provide employment in the first year for at lease two persons. By five years at
full capacity it would employ about 14 persons. Contractors and suppliers should also benefit.
Nationally, it will reduce cash flight or lost in Forex and generate about N17 million per annum
in revenue. The banks, insurance companies and Agricultural consulting firms shall all be
beneficiaries with the attendant tax going to the government. The investors shall also have find a
means of expressing their entrepreneurial skill. The manure will service proximal farms and far
farms. Egg marketers, maize or feed suppliers, transporters, spent birds marketers etc shall all
be affected positively. The impact on the economy will be positive.

3.1 Operational Detail

Attendants and manager get to the pen latest 6.30am. Mix disinfectant and pour at the
entrances. Change into work cloth and foot wears. Soak their legs with the disinfectant as well
as wash hand with same. Each nest is observed for discomfort birds sick or dead. Such animals
are then culled and recorded. Water is checked each Tip is tested to ensure normal flow.
Blocked Tips are cleaned or replaced. Feed (already measured) is given to the birds by evenly
pouring them into the trough. Eggs are packed from the cage using basket or directly into the
crates. Record is taken; this shall include number of morbidity, number of mortality, number of
eggs, abnormal observation on feaces or in the pen etc. The eggs now packed in crates, are taken
to the store room for onward transport out to the city facility.

3.5 Staff Housing.

Attendants shall and should be housed in the farm or in close proximity for the sake of
emergency such as insect attack, late feeding, brooding and security.

3.6 Infrastructural cost for Start up with 2,400 birds.

>land – N660,000

> Poultry house -(12m*25m) N1.7million

> Borehole – N150,000

> Delivery van – N

> Staff house – N380,000

> 20 units of Battery cages- N1.8 million

>Feed to lay – N341,000

> Point of lay birds -N2.28million

> Utility – N30,000

TOTAL = N7,341,000

3.7 City facility requirement.

A shop within the town shall serve the ware house feed and as depot for the produced eggs.
Feeds from the company will be truck load. Sales to other farmers will generate additional
income and provide the farm with reduce cost. When buyers buy from the farm egg outlet, it
reduces visitation to farm which has attendant risk of break of security and biosecurity.
Following the completion of physical structures, Semi-automatic battery cages of premium
quality will be purchased and installed in for 2,400 capacity pen. 20 units of 120 birds per unit
capacity cages will be utilised to hold at least 2400 birds.

4.0 PRODUCTION PROGRAMME

The Stocking plan involves the purchase of 2400 Birds as POL which will be placed in the first
year. The birds will be purchased at 14 weeks age and hence will take 6 weeks to come to lay.
They should peak by age week 30 when they are 17 weeks In the farm and spent by week 70
weeks and thereafter sold as Old Layers. Within one month, the Spent Layers should have been
sold out. 5 to 10% mortality room is allowed

5.0 QUALITY CONTROL

Biosecurity measure will be put in place to prevent disease outbreak. Foot bath for visitors and
workers will be put in place at the entrances. Every vehicle coming into the facility will also pass
through a bath and get sprayed. All quality control standards will be adhered to strictly so as to
produce a world class standard. Animals and materials will be kept away from the poultry pens.
Biosecurity training will be mandatory given to attendants and other staff

6.0 COMMERCIALS

6.1 INPUT REQUIREMENT

The major material inputs required for the success of this proposed project are Point Of Lay,
Feed (Grower mash, and Layer mash), various types of medications when needed and
vaccinations according to schedules. The current prices and sources of these inputs as stated
below are safe, dependable and readily available. Plan to utilize Vital feed from UAC plc. With
the consumption of 7 tons per month of Feed which is the expected requirement for 2400-
capacity poultry, Poultry will be qualified for 12% discount on prices of Feeds from UAC.

7.0 MARKETING PLAN.

Mr Poultry shall employ a Marketer at full capacity. He would be employed to sell the eggs from
one egg deport to another/ through the marketing activities, many clientele base shall be created.
These customers will be allocated dates. They either pick up the eggs from the farm on their
dates or have it delivered with the farm van at a price. All customers shall only be given
allocation with a confirmation of a bank payment. To expand the clientele base, advert will be
placed on different fora online.

8.0 PROJECTED REVENUE

The projected revenue from the project is mentioned in the summary. The revenue projection for
the first year in lay is in the figure of N9 to N17.5million from the sales of eggs and spent layers.

8.1 CASH FLOW PROJECTION

The projected cash flow for the Farm could be presented on request.. Positive net cash balances
are realized at the end of second laying year. From the projection, the farm shows profitability.

8.2 PROJECTED PROFIT AND LOSS

There is no reasonable profit visible in the first year of the project due to huge investment cost
but subsequent recorded reasonable profits.

CONCLUSION
Mr Poultry farm shall be a success. Poultry Farming is a highly developed industry. Its efficacy
and productivity is a product of bringing together of all the available industrial facilities, this can
never be provided enough by just one individual or company, hence Mr Poultry plan to
collaborate with investors and experts. The industry works effectively as a network with different
specialisation, bringing in diverse inputs. Also, to avoid overcrowding of ideas and thinning of
the limited resources, focus will be on egg production for a long time under the supervision of an
experienced consulting firm. Success is granted, God being by our side. Lagos is a large market
and strategically located to expand and serve the rest of the nation and beyond.