BUSINESS PLAN

Poultry production
(Meat Production)
 The business plan is shared to
Introduction help you clearly understand
the opportunity in thebroiler
meat production.

Please use carefully after

considering the current prices on
Afrimash.com as well as market
rate for sales of your birds after
production.
 Executive
Summary
The agricultural industry of which poultry farming and egg production is a subset of is no doubt among the leading industry in most countries of the
world, Nigeria inclusive. It is the industry that produces chicken and eggs for the populace. Because of the significant role the agriculture sector plays,
the government of most countries ensures that they go all the way to subsidize seedlings, fertilizers, and farming implements and machinery for farmers
and also encourage entrepreneurs to go into commercial farming (poultry farming inclusive).

Hens, various birds, quails, guinea fowls, ducks et al are all birds that can be comfortably reared in a poultry farm. Chicken and birds are widely
consumed in all parts of the world hence there is a large market for poultry farmers. If you are looking towards starting a livestock breeding business,
then one of your options is to settle for poultry farming

The Poultry Industry is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries such as
United States of America, Canada, United Kingdom, Germany, Australia and Italy et al and getting more exposure and attention in developing
countries like Nigeria.A report released in 2015 stated that the Nigerian poultry industry is estimated at ₦80 billion ($600 million) and is comprised
of approximately 165 million birds, which produced 650,000 metric tonnes of eggs and 290,000 metric tonnes of poultry meat in 2013 which could
have increased over the course of 4 years. From a market size perspective, Nigeria’s egg production was estimated in 2015 to be the largest in
Africa (South Africa is the next largest at 540,000 metric tonnes of eggs) and it has the 2nd largest chicken population after South Africa’s 200
million birds. But despite this humongous numbers, the poultry products produced by the country is yet insufficient for the populace.
 Executive
Summary
This invariably means, we still depend on importation to make ends meet in poultry consumption in the country. According to the Food and Agricultural
Organization of the United Nations (FAO), “growing populations, economies and incomes are fueling an ongoing trend towards higher consumption of
animal protein in developing countries.” FAO forecasts that Nigerians are expected to consume two thirds more animal protein, with meat consumption
rising nearly 73% by 2020. With this projection, we can thus induce that poultry farming is a business of the past, the present and of the future.

The company shall be established for raising and management of commercial meat- type chickens (broiler). This would be achieved by procuring;
1500 broiler Day Old Chicks for broiler production. They would be brooded for 2 weeks, fed and necessary medications administered. The rearing
will last for 12 weeks after which they would be sold live to off-takers in bulk, where they will be slaughtered, processed and packaged for resale,
sold to supermarkets or processed and grilled for sales. The farm will kick off with 1,500 birds with an estimated total cost of 3,087,500Naira,
yielding a profit of N 1,565,600 Naira respectively per cycle and a cumulative net profit after tax of N 3,811,400..00 in its first year of operation.
 INDUSTRY ANALYSIS
The broiler industry
The plan to venture into poultry is to cause an increment in the meat production and protein consumption. The commencement strategy is to start
with 1500 broiler chickens for broiler production. These birds shall be transported by night from hatchery to the farm in Ogun State. They would be
housed, fed and watered ad libitum (meaning continuously) day and night for 6 to 8 weeks. The birds at the target maturity shall be harvested by a
processing company who will come in with their vehicle, weigh live, issue invoice and pack to transport to their processing plant, sold as chicken cuts
or whole to supermarkets, hotels, restaurants. They can also be sold live or slaughtered, packaged and sold as frozen food. The innovation in the
broiler production will be organized as follows

Marketing:
The broiler producers will have to produce a quality that is preferred by their potential buyers and that is above usual market standards. There will
be need for periodic market research to maintain customer conformity and determine current preferences. The producers will also go out to
supermarkets and advertise their special broiler through tasting and giving free samples. Pamphlets will also be distributed at strategic points

.Project description
The project aims to produce 1500 organically raised quality broiler chickens that meet the customers’ expected standards. The fowl run space to
contain 1500 broilers comfortably will be rented. Clean water supply will be from a good and hygienic water source.

Marketing strategy
The findings from the market analysis revealed that some customers do not like the taste of imported chickens. They were described as fatty and
tasteless. This finding underscores a need to augment efforts of the local broiler producers and to increase the supplies of home grown broilers. In
addition, this establishment has to take an additional step to produce a quality broiler that their potential buyers want.
ABUBAKAR Bosede Emeka – CEO of Abubakar and Sons Enterprises.
Please insert short Bio

EMEKA Abubakar Bosede – Adviser on farm matters

Please insert short Bio

BOSEDE Emeka Abubakar – Veterinary doctor

Please insert short Bio

MEMBERS OF THE BUSINESS TEAM

 PROJECTED FINANCIAL STATEMENTS
1. List of consumables

S/N DESCRIPTION/ USES KEY SUPPLIER/SOURCES

CONSUMABLE
1 Broiler Starter and grower Feed Broilers eat starter feed from day old to 3 or 4 Commercial feed company
weeks of age
2 Broiler Finisher feed Broilers eat finisher feed from 3 or 4 weeks to 6 or Commercial feed company
8 weeks of age
3 Vaccines & Drugs Vaccination is done for prevention of diseases and Veterinary stores
drugs are to control diseases

2. Product equipment/Capital expenses

List of capital equipment and their depreciation table

ITEMS QTY. REQUIRED UNIT VALUE PRICE

1 Big plastic 4 1000 4,000
2 Elepeaq Constant 4.5KVA Key Start Generator 1 45,000 45,000
3 Energy saving bulb 10 800 8,000
4 Switch 4 500 2000
5 Plastic drum (180L) 2 12,000 24,000
6 COLMAN Wire , clip, lamp holder 200 X 50 yards 10,000, 12,600
+1200+2000
7 Jato Knapsack sprayer 1 10,000 10,000
8 Workmanship (electrical installation) 10,000 10,000
9 Pen Rent 1 120,000 120,000
per year
10 Chick tray feeders 60 250 15,000
11 Plastic hanging feeders 50 1200 60,000
12 Chick drinkers 60 250 15,000
13 Adult drinkers (10 L) 50 1000 50,000
14 Rechargeable torchlights 4 1500 6,000
15 Top loading digital scale (150kg) 1 35,000 35,000
16 Big coal pots 3 45000 45,000
17 Farm boots 4 1500 6000
18 Bathroom slippers 3 pairs 300 900
19 Shovel, wheel barrow 5 pairs 5000 + 10,000 15,000
TOTAL 483,000
 PROJECTED FINANCIAL STATEMENTS
A. Initial Operating Cost (Procurement, Feeding and Medications) (JAN –APRIL) (OCT- DECEMBER)

S/N Item Description Units required Unit cost Total

value
1. Chicks Broiler DOC 1500 250 375,000
2. Feed stock Starter: Week 1 to Week 4= 2 kg/bird Starter: Starter/bag (formulated)=3800; 3800x120bags= 456,000
2 x1500=3000kg. 456,000
3000kg/25kg = 120
bags

Grower/Finisher: Week 4 to Week 10 Finisher: Finisher/bag (formulated)=3500; 3500x360= 1,260,000

= 6 kg/bird 2.5x1500=900kg. 1,260,000
9000kg/25kg =
360 bags
3. Medication Estimated lump sum for medications and vaccinations 120,000
4. Charcoal For brooding 10 bags 2000 20,000
5. Moriguard Disinfectant 1 (5L) 10000 10,000
6. Miscellaneous 50,000
7. Insurance National Agricultural Insurance Commission (NAIC) at 37,500 37,500
2.5% premium
8. Shaving, 40,000
petrol
TOTAL 2,368,500
NB:
* Prices of DOC vary. It sometimes goes as high as 390 naira per bird, and can be as low as 150 naira per bird.
*Feed prices increase and decrease based on current market prices of feed ingredients.
A. Personnel
S/N Position No Salary/month Remuneration/phase (8 weeks)

1. CEO 1 20,000 60,000

2. Veterinary doctor 1 20,000 30,000

3. Pen attendant 2 15,000 90,000

4. Security 1 15,000 45,000

TOTAL 225,000

NB: The Veterinary doctor will be paying a visit thrice per production cycle (#10,000 per visitation).
 AA. TOTAL REQUIRED STARTUP CAPITAL ESTIMATE
(A year pen rent calculation)

Item Description Total Amount

1 Fixed Expenses (Equipment) Value of equipment from Item C. 483,000

2 Fixed Expenses Legal requirements 11,000

3 Initial operating expenses Procurement, Feeding and 2,368,500
Medications
4 Salary expenses Staff Logistics 225,000
Total 3,087,500

AB. SUMMARY OF TOTAL REQUIRED STARTUP CAPITAL ESTIMATE

Total operating cost (Articles 3 and 4 in AA) 2,593,500

Total fixed expenses (Articles 1 and 2 in AA) 494,000

Total cost 3,087,500

 COST BENEFIT
Cost and revenue analysis for PHASE 1 and 4
ANALYSIS (JAN –APRIL)
NB: maturity in this write- up depicts birds that are up to 10 - week- old, (OCT- DECEMBER).
unless otherwise stated

Mortality is a normal occurrence in l livestock business.

Assuming a mortality rate of 3 %, 0. 03 × 1500 = 45 birds is estimated to be lost due to mortality, thereby remaining 1455 birds
estimated to attain maturity.

At the beginning, we will be partnering with a bigger breeder pen who packs at the end of the 10th week at the rate of 750
naira per kg.
It is estimated that the birds will attain an average weight of 4 kg/bird at maturity, thereby accruing a sale of 3 ,000 naira per bird.

Therefore, Revenue = 1455 x4x750 = 4,365 ,000 Naira

Total operating expenses = 2,593 ,500 Naira
Gross profit = 4,365 , 000 Naira - 2, 593 ,500 Naira = 1, 771 ,500 Naira
Fixed expenses = 494, 000 Naira
Depreciation on fixed cost is spread over 4 production phases ( 1 year). Therefore, depreciation per
phase = 494 , 000/4 = 123 , 500 Naira
Net profit ( before tax) = Gross profit – Depreciation = 1,771 ,500 Naira – 123 ,500 Naira = 1,648, 000 Naira
Income tax at 5 % of profit = 5 % of 607 , 875 Naira = 82 , 400 Naira
Net profit ( After tax) = 607,875 Naira - 30,393.75 Naira = 1,565,600 Naira

Th erefo re, N et pro fit/ cycle = 1,565,600 N a ira

A. Initial Operating Cost (Procurement, Feeding and Medications) (June - Aug)(Aug-Sept)
B.
S/N Item Description Units required Unit cost Total value

1. Chicks Broiler DOC 1500 250 375,000

2. Feed stock Starter: Week 1 to Week 3= 1.5kg/bird Starter: Starter/bag (formulated)=3800; 3800x90bags= 342,000
1.5x1500=2250kg. 342,000
2250kg/25kg= 90bags

Grower/Finisher: Week 4 to Week 6 Finisher: Finisher/bag (formulated)=3750; 562,500

= 2.5kg/bird 2.5x1500=3750kg. 3750x150=350,000
3750kg/25kg =
150 bags
3. Medication Estimated lump 80,000
and sum for
vaccination medications and
vaccinations
4. Charcoal For brooding 12 bags 2000 24,000
5. Moriguard Disinfectant 1 (5L) 10000 10,000
6. Miscellaneous 30,000
7. Insurance National Agricultural Insurance Commission 37,500 37,500
(NAIC) at 2.5%
premium

8. Shavings and 50,000

petrol
TOTAL 1,551,000