Poultry Farming Business Plan & Feasibility Study in Nigeria

This Poultry farming business and feasibility study is updated regularly and so can be used to procure Grants,Bank Loans, competitions, etc. You can also use it as a sample guide to doing your own business plan or feasibility study.

Also Read: Comprehensive Business Plan on Poultry Farming in Nigeria

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BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

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TABLE OF CONTENTS

Introduction
Executive Summary

General

Financial summery

General

Business objective

Guiding principles and Values

Critical success factor

SWOT analysis

The Product and competition

Description of the Farm

The product

Competitors

The Management

Training and development

Evaluation and control

Target market

Market overview

Market needs

Strategy and implementation

Marketing plan

Financial Plan

Sales forecast

Personnel plan

Budget

Cash flow assumption

Loans and investment

Project appraisal and financial statement

Methodology

Major assumption

Conclusion

Profit and loss statement

Balance sheet

Introduction

A business plan clearly sets out the objectives of business (the self-sufficient school). It states exactly how the business intends to operate and how it will become profitable.

A good business plan will keep anyone focused on his objectives. It will help him plan for the future, because he will have already planned his activities. It will lay down a budget and predict future cash-flow so that he will stay on-track in his drive towards the goal of a self-sufficient school. It will also help someone identify areas that he might have overlooked or areas that require more thought and planning.

Executive Summary

General

The Nigerian economy is highly dependent on the import of goods and services to meet the domestic demands in the country. A large component of the imports consists of a variety of food products, ranging from agricultural products, canned goods and poultry. As a result, the government has been on a constant lookout for ways to negate this dependency and become self-sufficient. Poultry farming was introduced to serve this purpose.

The proposed business model in this document has many similarities to various poultry firm. The plan emphasizes on the importance of the eggs produced at the poultry farm be of premium quality and that it should clearly differentiate itself with its larger size and weight.

The major market that has been identified for the purpose of this study is the domestic market. The reason being that a product of this nature should ideally command a premium price to generate a reasonable return on the investment. The importance of a sound management and adhering to fundamental business principles is also highlighted. The plan identifies the high investment cost and the high cost of chicken feed as the biggest impediment for the success of the proposed poultry farm.

Financial Summary

Financial Highlights

The proposed investment in this plan is financially feasible. Following are some financial highlights for the projected 3 year term.

General

Business Objective

Some important objectives of the proposed business should be to:

Introduce the product to a niche market where the eggs will fetch the highest average price.
Develop a sustainable business, able to survive off its own cash flow
Increase income and job opportunities for the people and bring diversification to land-based economic activities.
Give confidence to the general people to invest and engage in similar commercial ventures.
Seek and secure the required funds to finance the proposed plans.
Become a reliable and stable and supplier of eggs.
Ensure that the potential customers are informed of the product’s unique attributes.
Develop the range of markets, and opportunities for consumption of the locally produced eggs and encourage participation, understanding and engagement.
Generate a reasonably good return on investment to the investors within a reasonable amount of time through sustainable and eco-friendly investment practice

Guiding Principles & Values

Any business that wants to be successful must follow certain principles and uphold certain values. The management of the proposed venture should believe that the first

Responsibility is to be given to the customers. Hence, the foremost importance should be given to ensure that high quality products are delivered to the customers. The management should value the customers as well as its employees and distributors and every possible effort should be made to sustain the lowest possible costs in order to pass the benefits of increased margins to the owners of the business, its employees and the community in which it operates.

The management should always inspire and respect the employees by recognizing their merit. It should always be the management’s belief that the employees should be adequately compensated.

Leadership should be a key guiding principle of the business. It should engage itself by involving, leading by example, trust and confidence of the industry, positive promotion of talent and market innovation. Using all the distinctiveness and diversity of skills of the employees, the management should ensure that the business is always open to and actively seeking out new perspectives and challenges, capitalizing on new opportunities and promoting the access and affordability benefits of the product and experiences offered.

Last but not least, Openness should be a key ingredient of all guiding principles. Straight forward communication, listening, clear dialogue and reflections on the industry and the business’s priorities in relation to it should certainly be a core principle in all its engagements.

Critical Success Factors

Securing of start-up capital.
Suitable size space and good location for the production facility.
Management commitment to excellence and customer’s satisfaction.
Emphasis on production of high quality eggs.
Consistency in the product, in terms of quality, taste and size
Proper management, administration, marketing and good financial management.
Existence of suitable infrastructure to support the business on the island.
Conduct an effective marketing and promotions strategy.
Products to be delivered to the distributors in pristine condition without damage to the eggs.
That wholesale prices remain constant for a reasonable period of time in order to gain the confidence of distributors.
Utilization of appropriate and efficient equipment to meet the set objectives.
Keeping the eggs fresh through proper storage and handling.
Trained manager and employees working on the production lines.
Effective coordination, communication and relationship management with sponsors/lending/aid agencies and other stake holders.
Accessibility and responsiveness to the needs of the customers.

SWOT Analysis

Strengths

Competitive price
Transport costs are lower as opposed to transport costs of imported poultry products
Being a labor-intensive activity, it can provide employment opportunities for women and youth in the local area, which will attract support from the stakeholders
Close coordination ensure that the needs of the local community are considered when the infrastructure is developed and the operations are carried out.

Weaknesses

High cost of imported chicken feed in the absence of locally produced feed.
Properly establishing and operating poultry units require high startup costs, especially for setting up of the layer house and the rearing house.
Intensive training will be required to generate awareness and stress the importance of appropriate operational techniques and procedures
Limited information available on trade and marketing on the locally produced poultry products
Lack of infrastructure due to limited rearing units and laying units

Opportunities

There is a high demand for eggs.
Expanding egg production units could lead to economies of scale
Fresher and more convenient than importing
Labor availability due to high unemployment levels among women and youth in local areas
Easier for community owned and managed businesses to attract funding and technical assistance from aid agencies.

Threats

Disease outbreaks may threaten the quality and supply of stock and finished goods
Inflationary factors which may drive up the investment and operational costs (especially the cost of feed) may not make the farm financially sustainable
Inability to achieve economies of scale may limit the ability to improve efficiency
Competition from other poultry production units in the long run could be a possibility
Inefficient management practices could turn what would be a lucrative, sustainable economic activity into an inefficient project causing economic and financial losses.

The products and the competitions

Description of the Farm

This is a sole proprietorship business where the main activity of the firm is to provide quality product through the Lagos city. I will collect chicken and eggs from different producer near to Lagos city especially from Surulere. Chicken and eggs will be distributed to restaurant, super shop, hotel, community center, and bakery and catering houses around Lagos city. Prolong the sufficient supply to the customer is one of my most important purpose. we want to supply extend area of Lagos city with affordable price.

Name: Amfest poultry farm
Address of the firm:

Factory: Km 10, Lagos/Ogun State Express.

Office: 10 Bode Thomas Street

Owners’ equity of the project:

It is mainly a partnership business.

Details of entrepreneur:

Name	Management
Ude Martins	Managing Director
Mr Kalu Ozor	Manager [Operation]
Miss Ijeoma Izu	Manager [Marketing]
Nnamdi Ofor	Manager [Sales]
Bassey Edet	Manager [HR]
Chidi Uba	Manager [Finance]

The Product

The eggs produced at the poultry farm should be of premium quality and shall differentiate itself with its larger size and weight. The eggs produced in the farm will be of 60g per egg compared to common imported white eggs of 45g per egg. The eggs will be produced in an environmentally friendly manner.

The price of the eggs will be competitive considering the high quality and freshness of the eggs in comparison to the price of imported eggs of the same quality. The proposed farm will have the capacity to produce 250 eggs per day, and eggs shall be sold to the market at BDT 8 per egg in the first year of operations. To ensure a non-stop stable supply of eggs to its customers, one rearing house and another layer houses (26′ x 36′ each) shall serve to maintain a continuous supply.

Competitors

Once the product is introduced, small businesses which are more organized in this kind of production and distribution may see the opportunity and seize it before the product is firmly established in the target markets. Other forms of competition will emerge from importers of similar size and similar quality eggs. However, the key target market for the locally produced eggs would normally be high quality local produce. Hence, competition will be limited and prospects for locally produced eggs are expected to remain good.

The Management

Training & Development

The management should always inspire and respect the employees by recognizing their merit. It should always be the management’s belief that employees should be adequately trained and compensated. Personnel training and remuneration should be regularly reviewed to keep up with market developments and to keep staff motivated. Competition in the long run can affect staff turnover and hence sufficient emphasis on staff training is critical to maintain stability in the operations.

Evaluation & Control

The management should evaluate the effectiveness of this plan and the feasibility study in meeting its goals. Regular quarterly meetings should at least be held to assess and evaluate the results of each quarter. The plans should then be reviewed if needed and new goals should be re-assessed and developed for the periods ahead.

Proper internal controls should be utilized to achieve its goals and objectives. It should be the means by which the resources should be directed, monitored, and measured and should play an important role in preventing and detecting fraud and protecting the business’s resources, both physical.

Target Market

Market analysis

Bangladesh is an over populated country. So, there is no equilibrium between demand and supply and more or less suppliers fail to satisfy the customers. Most of all, in food business if it is daily product there is no loss. So there is a great prospect being succeeded. Each and every people need chickens and eggs. Eggs are the ingredients of cake, bread, omelet etc. So restaurant, bakery, hotel, community centers needs eggs and chickens every day. As the different customers have high demand of chickens and eggs we have a high prospect of success.

Market Needs

The target market prefers premium quality eggs whose origins are familiar to them. Quality, fresh produce coming from known environments have an edge over similar products imported from unfamiliar producers.

The concept of ‘ethical purchasing’ and ‘positive buying’ would be an important driving force in making purchasing decisions at high end resorts. The facts that the eggs purchased contribute to job creation in the community and empowerment of women or contribute to the betterment of other disadvantaged people are very important factors taken into consideration in the target market.

Strategy and Implementation Marketing Plan

Positioning

The eggs farmed at the poultry farm should be emphasized as being of premium quality and distinguish themselves with its larger size and weight of 60g per egg compared to common imported white eggs of 45g per egg. The fact that the eggs are produced in an environmentally friendly manner must also be highlighted.

Pricing

Pricing for the eggs should ideally be market driven based on the weight of the egg and the targeted market segment. Its pricing structure should be based upon the targeted clientele and a survey of egg suppliers and their prices in Bangladesh. For the purposes of this study, we have assumed the tourist market as the key market and estimated a selling price of BDT 8 per egg in the initial year of production. The price of the eggs are highly competitive considering the high quality and freshness of the eggs when compared to the price of imported eggs of the same quality. For the purposes of this study, it must be noted that the cost of feed has been assumed to at 50% lower than the actual cost of feed, if imported. It would not be possible to maintain a selling price of BDT 8 per egg unless cost of feed is minimized by 50% or a subsidy or a grant is given to the poultry farm.

HURRY NOW! GET YOUR POULTRY FARMING BUSINESS PLAN & FEASIBILITY STUDY NOW!

To place an order, pay N10,000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

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