POULTRY FARMIN BUSINESS PLAN

Table of Content

Title Page                                                                                                                1

Table of contents                                                                                                  2

Executive Summary                                                                                             3

Strategy and Implementation Summary Objective                                                3

Tactics and Strategy Impacts                                                                             4

Operational Plan                                                                                                   4

Market Analysis                                                                                                    5

Market Strategies                                                                                                 5

Marketing                                                                                                               6

Grading                                                                                                                   6

Business Evaluation of Farm/Finance                                                             6

Layers                                                                                                                      6

Broilers                                                                                                                    7

Capital Expenses                                                                                                   7

Capital Expenses                                                                                                   8

Tools                                                                                                                         8

Workmanship                                                                                                        8

Production                                                                                                             9

Operational Expenses                                                                                          9

Summary                                                                                                                9

Total Sales for Period of 12 Months                                                                9

Profit = Sales – Expenses                                                                                    9

Using Pay Back Period                                                                                         10

EXECUTIVE SUMMARY

Feasibility Study on the establishment of a poultry form is based on the survey made by Ahmed Suleiman Yakasai, and the business with by wholly owned by him. The name of the poultry farm will be name ZASMASH GENERAL ENTERPRISES and will concentrate on sales of eggs and table meat bird (boilers).

We will supply birds and eggs to different quick service restaurant in south west Nigeria and our vision is to be one of the known poultry farm product supplier in Nigeria with a mission to raise healthy birds at a very profitable venture.

From the research that was carried out it was discovered that the demand for eggs and bird meat is not fully satisfied around some areas of Kano, though they are already existing poultry farms operating around borders of Kano and Jigawa state environment, the poultry farm will be sited at Tarauni Local government area in Kano State and neighboring environment to Kano, there are high demand in some part of Kano Municipal, Tarauni and some part of Kano. These legal requirements for the establishment of this venture such as local government revenue (tax) per month and security payment (vigilante) per month have been inquired and will be carefully complied with.

The venture will help in providence employment to the locals meeting the demand of eggs and making the price affordable in future, ZASMASH GENERAL ENTERPRISESS intends to develop into other livestock farming structures such as turkey, duck, guinea fowl and quail.

STRATEGY AND IMPLEMENTATION SUMMARY OBJECTIVE

·        To increase number of our client by 20% within 2 years of existence

·        To evaluate our strategic marketing by every three months

·        To keep and maintain hygienic farms for healthy eggs and birds

TACTICS AND STRATEGY IMPACTS

ZASMASH GENERAL ENTERPRISE’s products will be priced at affordable rate. When a markup is placed on any of our products, customers will be willing to pay because of the affordable price.

The venture to be established is a poultry farm that will concentrate on the production of eggs and sales of broilers, birds because of the fund required the venture will start as a small scale business having the population of three Local Government Area of Kano, which are Kano Municipal, Tarauni, Nassarawa and Fagge are target market. The farm site will be a permanent land and will need necessary equipment for its operation as it is entirely new firm to start from the scratch.

OPERATIONAL PLAN

The firm will be a commercial poultry farm; therefore it will require a full time labour and geared towards productivity on a scale for the sales of egg and sales of broiler birds.

For egg production, birds usually starts to lay at 18-22 weeks of age and continue to lay for Twelve months (52weeks) on average laying fewer egg as the new mounting period. The typical production cycle last about 17 months (72 weeks) and involves three district phases as follows:

PHASE 1: Pullets or broilers: This phrase last from 0 – 8 weeks during which small chicks (pullets) are kept separately from broilers.

PHASE 2 (GROWERS): This period concerned is between 8 – 21 weeks of age. Growers are the future laying birds and the way they grow up will largely determine how well they do in the laying house. Therefore management during the growing period is very important.

PHASE 3 (LAYERS): The laying period is taken to have started when the birds reach 5% egg production on a daily basis. The laying period continues until the birds are sold at the end of a laying period of normal length or are force mounted Housing time starts with the beginning of the laying period. The number of birds housed is the number of pullet in the laying house when egg production starts.

MARKET ANALYSIS

Most meals in Nigeria is not complete without poultry output like egg or meat. Nigeria has over 170 million growing population that demand for meat or egg on a daily basis. With increasing awareness on health implication of red meat, they are ever increasing demand for white meat and livestock are source of white meat.

MARKETING STRATEGY

As we mentioned earlier, resident and families of three to four local government of Kano being our target market awareness will be made by means of advertisement. The advertisement will be made on flyers, handbills, and one on one marketing will be done to eateries, restaurants and companies that demand for our product. Our major market aggression will be supplied to local markets makers of Cake and Ice Cream, Local restaurants and hotels.

MARKETING

Marketing activities include among other grading quality, promotions, packaging and value adding these activities are essentials as they will lead to large volume of sales of product quickly as possible resulting to increase of income.

GRADING

Eggs should be graded by size and labeled according to it weight. During selection and grading, care must be applied to ensure that weight is unarmed to avoid rejection from customers.

BUSINESS EVALUATION OF FARM/FINANCE

This evaluation is based on birds i.e. layers and broilers Layers are those birds that lay eggs while broilers don’t lay egg. This evaluation will be based on 5% normal loss i.e. at the process of taking care of the day old chicks; it is possible to lose 5% of the birds to sickness. Therefore if we start with 1000 birds, it is possible for us to lose 50 birds at the process of rearing them. While broilers if we start with 400 birds it is possible for us to loss 20 birds to diseases at the process of rearing them.

LAYERS

If layers are been rear, it takes 18 weeks to start laying egg, if we start with 1000 birds and we loss 5% of it so we have 950 surviving layers and with proper management of feeding and other maintenance of the bird it is possible to get 90% egg production that is 855 per day and 5985 pieces of egg every week. If we loss 1% of the egg that is 60 pieces every week so we have 5925 pieces p/weeks. 197 crates of eggs every week and crate of egg is sold accordingly to its size. Small size N500, Medium N600, Big size N700. Assuming we use medium size, that is N600 which result to N118500 sales of egg every week.

After laying eggs for 52 weeks (12months) we dispose the layer and it will be sold at the rate of N700 per layers.

Therefore, before changing the stock we might have made N6,162,000 from sales of eggs and N665,000 from the disposal of old layers making a sum total of N6,827,000 for the period of 52 weeks (one year).

BROILERS

Broilers do not lay eggs but grows to table size when they are from 8 weeks old upward. We are project for 400 birds of broilers and if we have 380 surviving birds sold at the rate of N1,500 each, making a total sales of N570,000 for the period of rearing the broilers. Making it total sales of (570,000 x 3) N1,710,000 for period of 12 months.

Total Sales expected for 12 months.

Layers                                                          N6,162,000

Broilers                                                        N1,710,000

                                                                       N7,872,000

CAPITAL EXPENSES

2 plots of land @ N150,000                      N300,000

Block 2000 pcs @ 110                                N220,000

Cement 60 bags @ N1800                         N108,000

Cement Carriage                                           N3,000

Woods                                                             N151,700

Roofing Sheets                                              N126,000

Roofing Slate                                                  N25,000

Ceiling Slate                                                    N15,000

Reggie’s                                                           N7,500

Nails                                                                  N12,000

Net 15 bundles @ N4000                            N60,000

Iron door                                                          N43,000

                                                                       N1,071,200

SANDS

Stone Big 2 tipper @ N25,000                   N50,000

Sharp sand (Mayans)                                   N20,000

Soft Sand                                                         N22,000

                                                                            N92,000

TOOLS

Day old feeders 30pcs @ N120                             N3,600

Day old Drinker 15pcs @ N200                             N3,000

Feeders 60pcs @ N550                                N33,000

Drinkers 12pcs @ N2500                           N30,000

Shovel & Head pan                                      N2,000

Thermometer (Digital)                                 N8,000

Scale (Digital)                                                  N10,000

Geepee Tank 1500litres                               N23,000

Geepee Tank 500 litres                                N14,000

Nylon 7 pcs @ N700                                     N4,900

WORKMANSHIP

Carpenter                                                     N65,000

Bricklayer                                                      N80,000

Miscellaneous                                            N130,000

                                                                       N275,000

Business Registration                               N20,000

PRODUCTION

1000 pullets @ 140                                 N140,000

400 broilers @ 130                                  N52,000

                                                                       N192,000

OPERATIONAL EXPENSES

Feeds, Vaccines & upkeeps                    N1,330,000

Salaries and stationeries                            N240,000

                                                                       N1,570,000

SUMMARY

Capital expenses                                       N1,200,000

Operational expenses                              N 50,000

TOTAL EXPENSES                                     N1,250,700

TOTAL SALES FOR PERIOD OF 12 MONTHS

Layers                                                          N6,162,000

Broilers                                                        N1,710,000

                                                                       N7,872,000

PROFIT = SALES – EXPENSES

For layers during egg production, the expenses are half of sales of egg will go in for feeds and other operational expenses. i.e. N6,162,000 divide by 2

6162,000

                       = 3,081,000

        2

For broiler the cost of production till the birds reaches table size before disposition is between N900 to N1000. So therefore let put the bench mark to N1000. If N1140 broiler is sold at the rate of N1500

1,710,000 – N1140,000 = N570,000

The profit of layers for the period of 12 months = N3,081,000

The profit of broilers for the period of 12 months = N570,000

Total profit =                      N3,081,000 for layer

                                      N571,000  for broiler

                                   N3,651,000

USING PAY BACK PERIOD

This method talks about the number of period that a business investment will pay back amount invested on it. It is usually shows the number of years it would take an investor to recover the initial cost of investment from the expected streams of cash flows. The payback period can be calculated as thus

PBP = Total Investment

Initial Capital

Using Payback Period of loan generating a profit of N3,651,000, 2 years and 8 months

Projected Profit and Loss

As the Profit and Loss table shows the farm expects to have rapid growth in sales revenue and an increase in net profit over the next three years of operations.

	Year1	Year2	Year3
Sales	N29,137	N172,500	N315,000
Direct Cost of   Sales	N6,799	N50,350	N93,600
Other Costs of   Sales	N0	N0	N0
Total Cost of Sales	N6,799	N50,350	N93,600
Gross Margin	N22,338	N122,150	N221,400
Gross Margin %	76.67%	70.81%	70.29%
Expenses
Payroll	N5,000	N90,000	N120,000
Marketing/Promotion	N180	N300	N400
Depreciation	N6,000	N15	N45,000
Building Expense	N804	N400	N800
Equipment Expense	N3,000	N0	N0
Utilities	N5,719	N8,000	N15,000
Phone/Fax	N1,266	N1,500	N1,800
Legal	N500	N250	N250
Rent	N3,996	N0	N0
Repair Maintenance	N3,798	N1,500	N4,500
Inventory	N966	N1,000	N2,500
Auto/Truck Expense	N9,600	N5,000	N5,000
Total Operating Expenses	N40,829	N107,965	N195,250
Profit Before Interest and Taxes	(N18,491)	N14,185	N26,150
EBITDA	(N12,491)	N14,200	N71,150
Interest Expense	N5,778	N4,877	N3,077
Taxes Incurred	N0	N2,792	N6,922
Net Profit	(N24,269)	N6,516	N16,151
Net Profit/Sales	-83.29%	3.78%	5.13%

Projected Cash Flow

Farm shows positive cash flow and the analysis is outlined in the following table. The investment of grant funding along with the disbursements of it was primarily accounted for in one month to simplify cash flow assumptions.

	Year1	Year2	Year3
Cash Received
Cash from Operations
Cash Sales	N29,137	N172,500	N315,000
Subtotal Cash from Operations	N29,137	N172,500	N315,000
Additional Cash Received
Sales Tax, VAT,   HST/GST Received	N0	N0	N0
New Current Borrowing	N15,000	N0	N0
New Other Liabilities (interest-free)	N0	N0	N0
New Long-term Liabilities	N0	N0	N0
Sales of Other Current Assets	N0	N0	N0
Sales of Long-term Assets	N0	N0	N0
New Investment Received	N1,944,390	N0	N0
Subtotal Cash Received	N1,988,527	N172,500	N315,000
Expenditures
Expenditures from Operations
Cash Spending	N5,000	N90,000	N120,000
Bill Payments	N47,111	N432,961	N75,327
Subtotal Spent on Operations	N52,111	N522,961	N195,327
Additional Cash Spent
Sales Tax, VAT,   HST/GST Paid Out	N0	N0	N0
Principal Repayment   of Current Borrowing	N1,932	N2,000	N2,000
Other Liabilities   Principal Repayment	N0	N0	N0
Long-term   Liabilities Principal Repayment	N2,400	N12,000	N20,000
Purchase Other   Current Assets	N40,000	N10,000	N10,000
Purchase Long-term   Assets	N1,500,000	N0	N0
Dividends	N0	N0	N0
Subtotal Cash Spent	N1,596,443	N546,961	N227,327
	Year1	Year2	Year3
Net Cash Flow	N392,084	(N374,461)	N87,673
Cash Balance	N401,834	N27,373	N115,047

 

 

 

 

In summary, Zasmash General Enterprises will adopt the following strategies in marketing our commercial farm produce;

Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry, households, hotels and restaurants and agriculture produce merchants etc.

Advertise our business in agriculture and food related magazines and websites

Leverage on the internet to promote our business

Engage in direct marketing

Encourage the use of word of mouth marketing (referrals)

Our Pricing Strategy

Some of the factors that will help us sell our farm produce at the right price that will guarantee that we make profits is dependent on our strategy while some of the factors are beyond our control. For example, if the climatic condition is unfavorable and if there is natural disaster in the location where we have our commercial poultry farm, then it will directly affect the prices of our chicken and eggs.

Over and above, We want to get the right pricing for our chicken and eggs, we have chosen a good location for commercial poultry farm, we will also choose a good breed that will guarantee bountiful harvest, we will try as much as possible to attract buyers to our poultry farm.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our eggs and chickens is to sell them at competitive prices.

One thing is certain; the nature of commercial poultry farming makes it possible for poultry farmers to place prices for their eggs and chicken based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss.

Check List

Business Registration: Yes

Opening of Corporate Bank Accounts: Yes

Securing Point of Sales (POS) Machines: Not yet

Opening Mobile Money Accounts: Not yet

Opening Online Payment Platforms: Not yet

Application and Obtaining Tax Payer’s ID: Not yet

Application for business license and permit: Not yet

Purchase of Insurance for the Business: Not yet

Gathering of Farm land: Complete

Building of poultry house: Not yet

Conducting Feasibility Studies: Not yet

Applications for Loan from the bank: In Progress

Writing of Business Plan: Complete

Drafting of Employee’s Handbook: Complete

Drafting of Contract Documents and Legal Documents: Not yet

Design of The Company’s Logo: Complete

Printing of Packaging Marketing / Promotional Materials: Not yet

Recruitment of employees: In Progress

Purchase of the Needed furniture, electronic appliances and CCTV: In Progress

Creating Official Website for the Company: In Progress

Creating Awareness for the business around the community: In Progress

Compilation of list of products that will be available in our store: Completed

Establishing business relationship with key players in the industry: Not yet

Payment Options

The payment policy adopted by Zasmash General Enterprises is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of Federal Republic of Nigeria.

Here are the payment options that Zasmash General Enterprises will make available to her clients;

· Payment via check

· Payment with cash

· Payment via online bank transfer

· Payment via bank transfer

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for chickens and eggs.

Poultry Farming Business Plan – Publicity and Advertising Strategy

We want our business to grow beyond the place we are operating from and of course we are ready and willing to utilize every available means to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our commercial poultry farm and egg production business.

Below are the platforms we will leverage on to boost our commercial poultry farm and production brand and to promote and advertise our business;

Encourage the use of word of mouth publicity from our loyal customers

Leverage on the internet, social media platforms and other platforms to promote our business.

Distribute our fliers and handbills in target areas in and around our neighborhood Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Zasmash General Enterprises  and the poultry produce we sell Advertise our business in our official website and employ strategies that will help us pull traffic to the site Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

Poultry Farming Business Plan – Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees One of our major goals of starting Zasmash General Enterprises business is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our chickens and eggs a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Zasmash General Enterprises will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and increase job opportunities.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is p put in place, they will be more committed to help us build the business of our dreams.

Conclusion

Commercial poultry farming in Nigeria has created and still creating a profitable business opportunity for Entrepreneurs and can provide a great employment source for job seekers. Most entrepreneurs prefer to produce day-old chicks and sell them to growers, as this option is easier and less risky. The choice, however, is up to you.

As a business owner, you need to get your business finances right from the onset and at the heart of these viable business opportunities in poultry farming are platforms, such as our online invoicing software that helps you keep proper track of your business revenues and expenses with ease.