Broilers
The One Pager Business Plan for Broilers
The One Pager Business Plan
Presented in bite size and easy to understand language, The One Pager Business Plan highlights the basic insights and considerations that helps you to decide if and how to engage in agricultural ventures.
Poultry Farming in The World
The poultry sector continues to grow and industrialize in many parts of the world. An increasing population, greater purchasing power and urbanization have been strong drivers of growth. The poultry sector, which has a market value of $310.7 billion in 2020, is expected to grow to $322.55 billion in 2021 and record at compound annual growth rate (CAGR) of 3.8%. The market is expected to hit $422.97 billion in 2025 with a CAGR of 7%.
Poultry Farming in Nigeria
Poultry is the third most consumed meat in Nigeria, after beef and goat meat, reports indicate that Nigerians consume over 1.5 million tons of poultry meat annually, and the demand for poultry eggs and meat continues to rise steadily. However, local production of poultry in Nigeria only meets about 30% of demand, while poultry imports meet up the rest of the demand. This clearly indicates that poultry farming in Nigeria is a highly lucrative field of agriculture that is still largely under-exploited in Nigeria.
Producing Regions
| North Central | All the states across the region |
| South West | All the states across the region |
| South East | All the states across the region |
| South South | All the states across the region |
SWOT Analysis
Strength: Low Competitors, Profitability, Lower Risk factor, Population growth.
Weakness: High initial Capital, cost of transportation to distribute products, Disease outbreak, Mortality rate, High cost of feed.
Opportunity: Low labour cost, Availability of land, Favourable climatic condition.
Threat: Disease outbreak like Bird flu, High cost of energy, Poor infrastructure (road, water).
PESTLE Analysis
Political
Economic
Social
Technology
Legal
Environment
Technical Consideration
A carefully controlled environment that avoids overcrowding, chilling, overheating, or frightening birds is almost universal in poultry farming. Biosecurity measures against pests and pathogens can be implemented by reducing human traffic on the farm and properly disinfecting humans and equipment. Medication programs must be put in place to prevent diseases. The feeding, watering, and cleaning operations must be consistent and timely.
Marketing Analysis and Distribution
Broiler production is highly profitable. During production, it is important to consider the market and sell the birds at a desirable market weight. Any further feeding after this weight is attained will result in "eating into the profit" if not properly considered. The target market for broilers includes:
Online Customers
Households
Individuals
Hotels
Restaurants
Fast food eateries
Agriculture merchants (wholesalers and retailers)
Operations
A good Poultry farm should have an operational team of passionate and dedicated staff which can be in 4 basic levels depending on the size of the farm as stated in the chart below.
Owner
Farm Manager
Farm Workers/Labourers
Marketers/Distributors
Risk
North Central: Intensive poultry farming leads to emissions that impact various environmental compartments, including air, water and soil. Waste materials, such as poultry litter and manure, are often produced in quantities that exceed the amounts needed for fertilization of local agricultural land.
High ProbabilityMitigant
Poor technical knowledge of the management practices involved in broiler production.
Medium ProbabilityMitigant
Broilers and poultry bird as a whole are very susceptible to pest and diseases infection and transmission rate is very high.
High ProbabilityMitigant
The initial capital for broiler production is capital intensive, Lack of adequate financial supports to poultry farmers when it is needed.
Medium ProbabilityMitigant
There is high concentration of broilers in the country.
Low ProbabilityMitigant
Lack of uniformity in the price of products.
Medium ProbabilityMitigant
Economics of Production for 1000 day old chicks
to attain 4kg body weight (November 2023)
Fixed Assets
| Item | Unit Cost | Quantity | Total |
| Feeders ( chick feeding trails) | 500 | 24 | 12,000 |
| Adult feeders | 1,000 | 70 | 70,000 |
| Baby drinkers | 950 | 30 | 28,500 |
| Drinkers | 1,000 | 20 | 20,000 |
| Shovel | 2,500 | 2 | 5,000 |
| Wire Mesh | 18,000 | 6 | 108,000 |
| Nylon | 10,000 | 4 | 40,000 |
| Construction Cost (15m x 15m pen) | 1,300,000 | 1 | 1,300,000 |
| Land Acquisition | 500,000 | 1 | 500,000 |
| Total Fixed Asset | 2,083,000 |
Cost of Production to attain average of 4kg body weight
| Item | Unit Cost | Quantity | Total |
| Cost of day-old Chick | 1,000 | 1,000 | 1,000,000 |
| Feed/kg (with feed conversion ratio 1.5) | 540 | 6,000 | 3,240,000 |
| Drugs and Vaccines | 20,000 | 1 | 20,000 |
| Salaries | 50,000 | 2 | 100,000 |
| Miscellaneous | 100,000 | 1 | 100,000 |
| Total Variable Asset | 2,083,000 | ||
| Revenue | Quantity | Unit | Total Sales |
| Sales of broilers after 9 weeks | 1,000 | 10,000 | 10,000,000 |
| Total Revenue | 10,000,000 | ||
| Depreciation cost | 9% | 187,470 | |
| Total Cost of Production | 4,637,470 | ||
| Profit | 5,352,530 |
Profitability of Production (November 2023)
| Parameters | |||
| Total cost of production/pen | 4,637,470 | ||
| Mortality 5% | 5% | 950 | |
| Expected yield/pen | 950 | ||
| Market Price @ 4kg/pen | 10,000 | ||
| Expected Revenue | 9,500,000 | ||
| Margin/pen | 4,862,530 | ||
| Rate of Return on Investment(RRI) | 104.85 | ||
| Capital Turnover (CTO) | 51.18 |
Funding
There are funding sources for medium-scale broiler production if capacity and capability are demonstrated. Typical funding sources from formal financial institutions include:Funding considerations will require that feasibility and viability are demonstrated, some track record in agriculture will also support a positive funding outlook.
Out Growers
Investors and partnerships
Development interventions
Grants
Banks: Microfinance and commercial
Who is Suited for This?
Anyone that is ready to acquire knowledge and take risk on broiler production. The person must have a passion for livestock production. The best-suited are agriculture students or graduates, professional farmers, side hustle farmers, and enthusiasts.
Consideration Score
- Viability --- High
- Feasibility --- High
- Profitability --- High
- Ease of entry --- High
- Aggregate Risk --- Medium
- Probability for Growth --- High
- Resilience and Sustainability --- High
- Aggregate Consideration Score --- High
Conclusion
In Nigeria, all geographical areas possess similar characteristics and nuances regarding the economics of production (EOP) and profitability of broilers. The table above illustrates that the potential net profit for broiler production is significant in the country due to high demand.
