This article will focus on the requirements on starting a poultry farm business, its market attractions and major challenges encountered while conducting business. Before setting up poultry, it is important to develop a business plan because it will aid in planning and overall efficiency.
Your business plan should include the following:
- Type of Poultry Bird: There are several ranges of birds to choose from. These include chicken, goose, duck, turkey etc.
- Areas of Interest: There is a range of business ventures in poultry farming. These include layers breeding, broilers breeding, hatchery or poultry feed. It is advised to focus on one venture as a start-up business.
- Location: The choice of business location is a very important factor. A location in a remote rural area will be less expensive to start a poultry business. A remote rural area is an ideal location because it is unsafe to set up a poultry farm near residential/urban areas for health reasons.
- Secure Starting Capital: With the location in mind, you should create a budget for your expenditures (equipment, building, land, staff costs, feeds etc.). There is a wide range of credit schemes that support agricultural projects such as the Lagos State Employment Trust Fund (LSETF), Central Bank of Nigeria (CBN) and Bank of Industry (BOI). Also, the FarmCrowdy platform creates a great opportunity for small-scale farms to generate funds.
Sample Cost Analysis For 300 Broiler Birds till Sales (3 Months & 2 Weeks)
Cost Analysis provided by Goason Farms
A poultry bird (Broiler) consumes medications, vaccinations and feeds in the total of N2,500.00
Please Take Note of the following & changes that might occur: –
- The total cost of a day-old chick till sales period is somewhere between N2,500-N2,800 depending on several factors which include deep litter or cage, weather conditions of the environment and care system.
- A bag of feed goes for N3,850 –N 3,950 depending on the season and has a weight of 25kg per bag.
- The tentative sales price are for a large order (100 birds and above), smaller quantities are sold for higher prices.
Other Major/Minor Cost
- Pen: Otherwise called a large ventilated space that can permit the use of cages or conversion to deep litters. Now depending on the area, there are 3 factors one must consider carefully before embarking on this venture
- The cost of chick (which depends largely on the season)
- The cost of feeds (which also depends on seasons)
- The cost of Pen (This depends on the location your farm is and its proximity to the market or your customers) = (In Rural Lagos) = N100,000-N200,000/Year
- Transportation: This is the cost incurred during the purchasing of poultry feeds usually once a week if the purchase is up to 15 Bags and birds up to 200. Also, the need for transportation is also paramount to the purchase of sawdust for the local sawmill plant. Whilst the sawdust might be free, its movement to the farm cost up to N2,000.00 using tricycle ( popularly called Keke Marwa). Note that for proper health, it is important that the hygiene of the pen be up to standard for the sake of the birds, hence a pen must be cleaned every two days.
- Charcoal: This is needed for the 3 weeks they stay in the brooding room
To start a poultry farm business, you will require the following;
- Business Registration: Your business must be duly registered with the Corporate Affairs Commission (CAC).
- Local Government Food Permit and Business Permit: A food/business permit must be issued from the Environment Service Department of the LG/LCDA where the poultry farm is domiciled. The poultry farm will be inspected by health officers for health and safety compliance. Once the permit is approved, business operations can commence.
- Other Local Government Fees/Levies: Confirm with your local government if you require any other permits to operate within the area.
- Evidence of Tax Payment: The payment of tax by all businesses is a requirement of the Lagos State Government. Ensure you have photocopies of any tax payments ready for presentation when approached by authorities.
- Registration with Associated Industry Body: It might be useful to register with an associated industry body for example; the Poultry Association of Nigeria for information sharing and collaboration. This will be useful to overcome common challenges which will aid business growth.
Challenges of Doing Business
- High cost of feeds: The sourcing of quality feeds is costly and might be a major challenge to start-up businesses.
- Smuggling and Importation of Poultry Products: Imported poultry products are consumed and preferred by a greater population due to the low production rate of most businesses and might be cheaper to source.
- Bird Health: Poultry birds are very sensitive and contact diseases quite easily. Generally, they suffer from various types of viral, bacterial, fungal, nutritional and parasitic diseases. Proper and timely vaccinations are essential for keeping birds’ disease-free, healthy and productive.
Poultry farming has become one of the most lucrative businesses in Nigeria. As the Nigerian economy is dependent on the agriculture sector, poultry farming will continue to play an important role in the country.
- LSETF Strategy, Research and Policy Unit
- Gbenga Oluwafemi Ajana is the founder and Chief Executive Officer of Goason Farm. He holds a B.Sc. Economic degree from Houdegbe North American University; Benin Republic. He also has an advanced Certificate degree in Fundamentals of Operations Management from Sharphire Global Limited Institute.