Business Plan

On Poultry Farming in Gboko

Prepared By
Ngumimi Ndera

October, 2023

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 CHAPTER ONE

1.1 BUSINESS NAME AND ADDRESS

MIMITORKS FARMS

NO 6 CAPTAIN KEGH LANE OFF LUBUNA

JUNCTION YANDEV GBOKO,

BENUE STATE.

(+234)7036960426

mimitorks@yahoo.com

1.2 EXECUTIVE SUMMARY

Poultry farming is one of the most lucrative agriculture business in Nigeria.

Thousands of poultry products are consumed everyday yet, the demand remains

unsatisfiable. Poultry farming is the second most considered sector which is under

animal husbandry in agricultural field. It is easy to run and requires less expenses,

opportunities surrounding poultry farming are exponential in highly profitable

ways.

Mimitorks Farms is well positioned to become one of the leading commercial

poultry farms and fish production business in Gboko, which is why we have put
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process and strategies in place that will help us employ best practices when it

comes to poultry farming. At the Mimitorks Farms, our customers' best interest

will always come first, and everything we do will be guided by our values and

professional ethics. We will ensure that we hold ourselves accountable to the

highest standards by meeting our customers needs precisely and completely. We

will cultivate a working environment that provides a human, sustainable approach

to earning a living, and living in our world, for our partners, future employees and

for our customers.

1.3 MISSION STATEMENT

The mission of the business is to fill the gap in the most sought-after protein

produce in the state and beyond, at an affordable but competitive price. We will

leverage on the ready market for excess production hence improve incomes.

1.4 HISTORY AND CURRENT STATUS

The business is at its start up stage. We have the site and set up the structure for

the commencement of the farm and factory. We have acquired the necessary

knowledge needed for the smooth operation of the business, but the financing of

the business to a complete state where we can start production is the challenge.

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1.5 MARKETS AND PRODUCTS

Poultry farming is a great business idea as an increasing number of people are

switching to eating healthy and incorporating protein into their daily meals and

poultry products are a chief source of protein. Apart from that, the poultry

business has several advantages, both for the business owners and the customers,

such as-

• Customers get access to fresh meat that is organic and hygienically obtained

following standard rearing procedures.

• The prices of the products are reasonable thus making it possible for greater

number of customers to purchase the items, which in turn increases the market

reach for the business owners.

• Business owners on the other hand also benefit from raising chicken birds in the

poultry business as they can get meat from the same sources.

• Also, the rate of return in the poultry business is quite good as the products are

sold at a good rate and there is a continuous demand for the products.

Poultry farming can be done alongside regular farming as the need for materials is

not too extensive. Additionally, the bird droppings from the poultry farm are rich

in nitrogen which can thus be used as an organic source of the essential element
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nitrogen in the form of a fertilizer for the regular farming land. Thus, poultry

farming business can indirectly benefit regular farming as well.

1.6 OBJECTIVES

Our objective is to achieve good quality produce, without compromising the

standards. We also aim to achieve a total turnover of N800,000, a gross profit of

N471,00 by the close of the festive season, having successfully sold a total of

approximately 100 birds. This is besides producing manure from the waste

product of the birds.

1.7 RISK ANALYSIS

The risk that may be associated with the business are the following:

• Disease outbreak

• Fire outbreak

• Theft/pilfering

• Climate

1.8 MITIGATION OF RISK

The risks shall be mitigated by taking the following steps:-

• Regular vaccination of the birds

• Install fire extinguishers at strategic points in the farm

• Train workers on fire safety measure with regular refreshers

• Take necessary measures, within our powers to mitigate any unforeseen risk,

except for force majeure

• Pay workers well and regularly to prevent massive pilfering of produce

CHAPTER TWO

2.1 PRODUCT OR SERVICE DESCRIPTION

Our products, birds (chicken) and birds’ droppings, feathers. We are offering our

customers healthy birds as sources of protein and healthy diets. Our customers

will benefit from the healthy diet at a competitive and affordable price. Birds are

lean meat, with high nutritional value and eating it regularly will help you stay

healthy. Chicken has been found to have very high protein content, which plays a

very important role in sustaining our muscles, help in weight loss, improve the

bone conditions, relieves stress and improve immunity. It is also said to lowers fat

and cholesterol. The by-product will be processed into manure. Processing it into

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manure mitigates the environmental problem likely to be caused by poultry

processing. For instance, poultry waste (offal), if not properly managed, if released

into the environment may become vector for insects, vermin, bacteria and viruses,

resulting in water contamination and air pollutants. Also, the bird’s feathers can

be a source of income, as it has been shown that it can be heated, mixed with

other materials and molded into plastics, and it is a strong protein produce called

Keratin and used in animal feed.

Additionally, the bird droppings from the poultry farm are rich in nitrogen which

can thus be used as an organic source of the essential element nitrogen in the

form of a fertilizer for the regular farming land. Thus, poultry farming business can

indirectly benefit regular farming as well.

CHAPTER THREE

3.1 INDUSTRY AND MARKET ANALYSIS

Poultry farming is an aspect of economy and agriculture which is critical to human

nutrition. It is a vibrant business and it has a huge patronage nationwide. It has

developed from the very rustic level to technology driven, where farmers can use

technology to monitor how the birds are faring. Records have it that poultry

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contributes over 1.6 trillion Naira to the Nigerian’s agricultural GDP. Specifically,

the study revealed that the poultry meat produce contributes about 35.2% while

the eggs contribute 63.65% to the total domestic meat and egg demands.

CHAPTER FOUR

4.1 TARGET MARKET STRATEGY

Our target market shall include:

• Hotels,

• Restaurants

• Market – both open and chain-stores

• Bakeries

• Roadside chicken barbecue places

• Individual and collective families

The business is located in Gboko, Benue State but the produce will reach to all the

local government areas and beyond the state. Our target is that we will be the

most sought after poultry farm and so we intend to sell our produce wherever we

can reach.
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4.2 PRODUCT/SERVICE STRATEGY

The business as a policy will sell its products on cash basis. However, customers

who buy in large quantities will be considered for credit on their own merit, based

on negotiated terms and conditions.

4.3 PRICING STRATEGY

We shall take into consideration the market pricing and adjust in such a way that

we do not hurt the market and still make profit.

4.4 DISTRIBUTION STRATEGY

We shall employ both wholesale and retail. In doing this, we will engage

distributors and open a sales outlet in areas that we have no distributors. We will

also offer self-collection and direct delivery as the need arises. The products will

be conveyed to target locations, where the order is large. For small deliveries,

customers may walk in and take their deliveries or home delivered on agreed

terms and conditions. We will however strife to make deliveries, easing the stress

on our customers. This will give us leverage over our competitors.

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4.5 ADVERTISING AND PROMOTION STRATEGY

Birds especially chicken and sometimes turkey are stable in homes and eateries.

We will leverage on that and place adverts on social media and churches. We shall

also embark on visits to eateries, introducing our products to them.

4.6 MARKETING AND SALES FORECASTS

We forecast to sell at least 25 broilers each day, delivering to hotels, restaurants,

bakeries and individual traders.

CHAPTER FIVE

5.1 OPERATIONS STRATEGY

The farm will start with one structure of 30 x 10 meters. It will be partitioned into

three rooms for store, for brooding, and for the deep litter system. The

partitioning shall be done to ensure the safety of the birds and employees.

5 2 MATERIAL NEEDS FOR OPERATIONS

Raw materials needed for the operation

S/N Brood Stock Description/Uses Key Sources

1 Broilers (1 day For chicken meat Agrited Farm

old)

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Consumer needed operations

S/N Consumable Description/Unit Key Sources

Materials

1 Feeds For feeding birds Supplier

2 Rice charf To serve as litter for the birds Rice mill

3 Electric bulbs For lightening and warming the Open market

birds

5.3 OPERATING EQUIPMENT

S/ Equipment Description of equipment Supplier

1 Feeders/drinkers For feeding the birds Supplier

2 Rechargeable As an alternative source of lighting Open market

lanterns

3 Charcoal stove used in places where electricity is not Open market

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 CHAPTER SIX

6.1 PRODUCTION

From Inception, 100 birds will be introduced with mortality rate of 10%. With the

required incentive, the farm can effectively manage 3000 birds.

6.2 OPEN STOCKING

Stock/Item Quantity Unit cost (N) Total (N)

Day Old Broilers 110 980 107,800

Feeds 15 bags 13,500 202,500

Rice charf 2 bags 1500 3000

Vaccines and drugs 12 1300 15,600

6.3 PROPOSED PRICING

We will adopt the cost-based price in the sale of our products for the festive

season market.

Items Description Proposed selling price (N)

Live chicken Per bird 8000

Organic manure 25kg 1500

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 CHAPTER SEVEN

7.1 FINANCIAL ASSUMPTIONS

An assumption of 14.5% to the price of equipment and stock has been added to

the financial plan, giving room for inflation and other unforeseen factors that may

affect the cost of production.

Start-up Capital Estimate

Activities Period Amount (N)

Pre-operating Expenses 53,200

Initial Operating Expenses 10 weeks 328,900

Total 382,100

7.2 SOURCES OF FUNDS

Sources % Amount (N)

Personal Equity 30 114,630

Loan Proceeds 70 267,470

Total 100 382,100

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