A BUSINESS PLAN on: Profitable Commercial Poultry Egg Production

Under A Semi-Automatic Layer Battery Cage

System and Commercial Biogas Plant

By:

Adedare OSUNSANYA

An Agribusiness Value Chain Expert/ICT Consultant

Support@darbotechub.com

+2347039359066

CONTENTS

EXECUTIVE SUMMARY…………………………………………………………………………………………….3

1. INTRODUCTION TO THE COMPANY…………………………………………………………………….4

2. ORGANIZATION AND MANAGEMENT PLAN…………..………………………………………..…...5

3. BUSINESS AND PRODUCT DESCRIPTION….………………………………………………………....6

4. MARKET ANALYSIS…………………………………………………..……………………………………….17

5. MARKETING PLAN……………………………………………………………………..……………………..18

6. FINANCIAL ANALYSIS………………………………………………………………………………………..20

I. Capital Expenditure

II. Recurrent Expenditure

III. Total Expenditure

IV. Income statement

V. Net Income and Profit

7. S.W.O.T Analysis………………………………………………………………………………………….……..26

I. Strengths

II. Weaknesses

III. Opportunities

IV. Threats

8. CONCLUSION………………………………………………………………………….………………………….27

EXECUTIVE SUMMARY

To be provided in the full plan

1.0 INTRODUCTION OF THE COMPANY

(Name of business) is an exciting new poultry farm to be positioned in (location) in order to

meet a limiteless need for high-quality and sparkling eggs. In addition to the egg production

in the future, the company plans to proceed into broiler production, poultry value addition

and commercial biogas plant.

Vision

To be among the first 5 renowned egg producers in (location) Nigeria by 2023.

Mission Statement

Our mission is to offer healthful first-rate eggs to the general public in each near and faraway

regions of (area).

1.2 Business Objectives

• to boom egg production performance by using 10% a year.

• to preserve income margins at 20-25% through close attention to fees and cost of

production.

• to expand a sustainable industrial egg layer system, surviving off its personal cash go

with the flow.

• to develop an environmentally friendly poultry system.

• to increase a product-primarily based business enterprise whose aim is to exceed

customers’ expectations.

1.3 Value Proposition

We plan to make use of conventional and extra superior technology to provide quality eggs.

• availability of quality eggs meeting the need of a wide variety of class of humans.

• provision of high-quality biogas that is greater environmentally friendly. This can

additionally function a supply of producing strength for the farm and further supply of

earnings.

• provision of satisfactory products and friendly provider.

• excellent customer care services.

• fairest and lowest feasible prices.

2.0 ORGANIZATION AND MANAGEMENT PLAN

1.1 Promoter of the business

The company operates under a sole proprietorship/joint partnership legal structure and is

promoted by (Name) – He has a B.Sc in Food Science and Technology and Master’s Degree in

Business Administration from ………... He has received entrepreneurial awards and not only

has the required experience to run this business but to also hire the right professionals who

will help run the business.

With over 5 years’ experience in Agricultural Industry and numerous exposure to both the

scientific and practical aspect of services, he has been able to master the technical

requirements, financial management, staff recruitment and organization skills among other

things necessary to give the industry good commendation from our clients. His managerial

skill has also helped in putting together a workforce for over 5 years, which will also help

him to coordinate the team work in most aspect of the company.

He is the CEO/Founder of the company overseeing the day to day activities of the business.

1.2 The management team

The Close Corporation is made up of a strong management team of three committed and

dedicated men. They will share various roles and responsibilities in the identified business

functions such as marketing, human resources, operations, finance and many more. The

three members will represent the ownership of the project but specific management and

operational functions will be given to each member. One of the three members will be given

the responsibility of the overall management of the project and will report to the other

members who will act like a board. We will bring to the business:

Educational skill and practical experience in egg production and Poultry farming

Capacity to consistently provide outstanding service.

Quality processed product and good understanding of the market trend.

1.3 Key Management Staff

Our staff brings operational, marketing and promotional skills to the business.

1.4 Record control process

An inventory management software program and accounting monitoring software (along

with wave) may be made use of. These are primarily computer based systems for tracking

stock ranges, orders, income, charges, invoices and deliveries. The subsequent is the

document/inventory manipulate manner a good way to been carried out;

• ensuring all products are displayed in the proper quantity.

• recognizing whilst a purchaser has offered a product or request for a service.

• automatically signaling while extra products want to be displayed

• automatically reordering stock at the ideal time from the raw materials provider.

1.5 Record keeping documents

Books to be kept are;

Financial/sales records: To determine how much money comes into and leaves the

business over a month.

Operation records: To ensure that quality assurance are in place and operating

satisfactorily. Also, to know the amount and type of consumables used on daily basis.

Employment records: Formal documentation of all proceeding related to our

employees.

Insurance records: For insurance policy purpose.

Safety records: For occupational health and safety assessments.

3.0 BUSINESS AND PRODUCT DESCRIPTION

3.1 Issues Of The Nigerian Poultry Industry

The Poultry industry in Nigeria has had it shares of Ups and downs the highest point

from1967 to Seventies i.e. The oil boom duration whilst the poultry population attained

about 110million in 1975 (federal office of records annual summary of statistics 1981)

however in 1978/79 and especially in the 1980’s the industry experienced a down turn. At

present the industry is working at approximately 17-30% potential of its 1975 height.

These days, Nigeria is rarely meeting her poultry call for in chicken meat and eggs. Seventy

percent (70%) of our fed on poultry merchandise in particular meat, are smuggled product.

The call for geared up to consume eggs on my own outweighs the demand but, international

locations like Niger, chad and northern Cameroon basically depend upon our little supply.

Big Restaurants such as KFC, Sweet Sensation and Mr. Biggs compete for the available little

supply, thereby, hindering the introduction of some recipes because of non-availability of

poultry meat. Essentially, our egg supply can only attempt to meet our edible demand hence,

the industrial need is completely left out. This calls for a tremendous personal participation

inside the Nigerian poultry industry. Additionally, most of the commercial gasoline being

offered around aren't environmentally and economically friendly, thereby, posing a main

hazard on the lives of the populace and their profits.

Hence, this has deemed it suit for us to be among the various company investors to embark

on a 1000 birds capacity semi-automated layer battery cage system and commercial

biogas plant to be able to produce at least 20,000kg of biogas monthly in (location).

3.2 Location And Site

• This will be located at (area), in an effort to be built on a permanently acquired/leased

land that is suitable for this purpose. (region) weather and terrain is appropriate for poultry

farming and at massive for agricultural functions. Extra so, this location is an authorized

agricultural land mass through the government a good way to decorate the sustainability of

this agricultural industry as land documents including deed of possession and certificate of

possession can be immediately authenticated via the relevant government business

industry.

• this farm proposed area enjoys direct link to different nation capital axis via an

available and properly tarred road that makes it clean for purchasers of fowl products to

reach without a lot ado.

• the proposed site of the poultry farm is a government permitted agricultural land

with deliberate security network that also makes it’s a secure haven for industry coupled

with hospitable nature of the population of this place.

• considering the agrarian nature of the proposed site, labour is with no trouble to be

had and less expensive.

• sustainability of this poultry farm is greatly more suitable because agro-related

activities is dominant at the proposed location. This consists of huge expanse of arable land

that could be leased in destiny to grow maize that is a main element for poultry feed

production. Subsequently, making the mission particularly worthwhile as price might be

decreased as a whole lot as twenty percentage via direct milling of feed.

• delivered to the above listed suitability factors of the proposed poultry site is the

privilege offered for growth in/and other agribusinesses and coordinated help from other

farms around.

• the poultry site will be planned from the outset with the infrastructures properly

placed and spaced out.

BATTERY CAGE SYSTEM

Here birds are kept throughout their productive life time in cages. As such, they are strictly

commendable for use by commercial egg producers. Caged birds are capital intensive but the

merits include; ease of management, cleaner eggs, safety from breakages, minimal feed

wastage, reduced water contamination and maximized space.

DEEP LITTER SYSTEM

Starters with restrained assets could start with deep litter system. It's miles cheap, litter

materials are effectively available. The primary requirements are conducive housing and

extra excessive management of the water, feed and litters. The roof in all instances should be

heat repealing, crafted from asbestos, thatch etc. Vent, created to let loose heat, wall have to

be much less than 2 feet high, 'curtain' from sacks or tarpaulin supplied to save you entrance

of rain water to prevent incidences of coccidiosis and different enteric diseases. Right here

poultry are constrained in a house with floor space of 8 to ten birds/m2 to make certain loose

motion. The floor should be blanketed with a 5cm to 10cm deep muddle of grain husks

(maize or rice), straw, wooden shavings or a similarly absorbent (but non-poisonous)

substances. Wood shavings are relatively endorsed for use when you consider that birds can

not eat them. It additionally enables to prevent harm to the birds’ legs because of slippery

surfaces. Commonly old litter is renewed while alternative stock arrives. It's far beneficial no

longer to re-use antique litter. After old litter has been eliminated out of the residence, the

ground ought to be wiped clean and disinfected.

It is advisable that starters should minimise the price of poultry house production and utilise

neighborhood substances as gadget so that the restricted sources might be channel into

efficient running fee consisting of DOC or POL and feed.

Starters could start with POL, these are birds in their fourteen to twenty weeks of Age,

(birds often start dropping their first egg from 22weeks to 24weeks of age). Advantage of

acquiring Point Of Lay birds is the reduced risk in rearing birds from chicks. Prices of POL

ranges: 17weeks (N1200) and 19 weeks (N1400).

We have 2 types of poultry houses: Brooder/Rearing houses and laying houses

BROODER/REARING HOUSES:

The house is constructed with a solid base wall of about 3 – 4 layer of concrete block coaches

of 6 inches while the sides are open-sided covered with ¼ inch wire mesh with controllable

curtains and the height is about 3 – 4m.

TABLE 1: Floor/Space Requirement For Growing Birds.

Age in weeks Square feet per bird Square meter per bird

0-6 0.13-0.54 0.0123-0.05

6-12 0.54-0.86 0.05-0.08

Point of lay 1.08-3.2 0.05-1.10

Thus, number of birds /meter square 9-13

Note that while making provision for floor space for brooder house, the final space

requirement per bird must be the size of the house.

BATTERY CAGES:

There are two type of layer cages; automatic and manual cages for this purpose we will

consider the manual cages.

These cages come in two types; 2 tiers and 3 tiers, these cages come in different sizes

containing 76 – 144 birds/unit respectively. Most cages measure 7.5ft by 13ft and usually

about 7ft high. We are making use of a 3 tiers system with 96 bird capacity as shown below.

GARTECH CAGES: These are the latest trend in cage technology, it can be used as a semi-

automated or full automated system. Its dimensions are, length 7ft, breath 8ft 6”, and height

5ft 8”, 120 birds capacity per unit.

Picture 1: Gartech battery cage system Source: Animal care

3.4 Feed And Feeding Requirements

Nutritional values of the birds vary from day old to their laying period. The feeding pattern

is therefore based on the age of the bird.

From 0 to 2 Weeks - broiler starter

2 to 8 Weeks - chick mash (change feed to grower mash when birds are 680gram of weight.)

8 to 16 Weeks - Growers mash (when birds are 1505grams of weight)

16 to 80 Weeks - Layer Mash (start this when birds are 10% production in lay.)

It have to be stated that change from chicks mash to growers mash is based totally on the

weight on the time, that is among 610 – 680gms whilst the transfer from growers mash to

layers mash is satisfactory while the birds have attained 10% lay, in both cases this

modification is accomplished gradually with a sluggish mixing of both styles of feed. The

later alternate also can be accomplished primarily based on the weight of the birds which

ought to be among 1.7kg – 1.72kg.

Broiler starter is preferably while in comparison to the layer starter because of its excessive

protein content which is very important for growth of the chicks.

Attendants must usually rub the feed and offer water ad-libitum. They need to even have a

everyday feeding time, higher three times every day. I.E.

Dry season: 50:10:40 feeding ratio must be adhered to. The time frame should be between

6.00a.M-7.00a.M, 12noon-1.00pm, and four.00pm-five.00pm day by day.

Also make sure that the birds have cool smooth water, good enough air flow and decrease

the energy level of the layer mash.

Wet seasons: 50:25:25 feeding ratio need to be adhered to between the hours of 7.00-

7.30a.M, 12.00noon-1.00p.M, and four.30p.M.Every day. The power degree of the layer mash

need to be elevated.

Feeding might be decreased to two times every day because of high price of feed presently.

Time for gathering eggs have to also be constant and normal either once or twice each day,

(better twice).

3.5 Management Practices

MANAGEMENT OF PULLETS FROM 0 – LAYING PERIOD

CHICKS STAGES:

Arrival of the day old chicks to the farm is awaited with the practise of the brooder pen, that

is disinfected, washed dried and shavings located at the floor (light shavings). The drinker

and feeder trays are also washed and disinfected in readiness for the arrival. The heating

device (kerosene lantern, electric bulbs, charcoal or gasoline heaters) are organized and that

is put on, a day to the advent of the birds, temperature is kept at 320c (see brooding

temperature in table four under) to make sure that all system are heat. A dip need to be

located at the entrance of the poultry where attendants disinfect their legs before coming

into the pen.

TABLE : 4 Recommended Brooding Temperature

PERIOD OF BROODING TEMPERATURE

(WKS) (0C) (0F)

1 32-35 90-95

2 29-32 84-90

3 26-39 70-84

4-5 21-26 70-80

6.0. FINANCIAL ANALYSIS

This plan is designed for the rearing of 1000 layer birds from a day old to end of laying and

the capacity will be increased to 5000 birds in five years’ time. It is worthy to note that the

prices used in this study are current prices as at April, 2017 and are subject to change

without prior notice. However, feed prices are presently high due to the high cost of energy

inputs, it accounts for between 70-75% of total cost of production.

INCOME STATEMENT (Profit And Loss Analysis):

1000 birds will consume 84 bags of layer mash/month

Credit:

Income/month = 882,400 naira

Debit:

Cost of feeding per month at 28 weeks upward = 294,000 naira

Cost of salary per month = 70,000 naira

Miscellaneous = 10,000 naira

Total monthly expenses = 374,000 naira

Depreciation / month = 197,500 naira (5% of fixed asset monthly - this amount should be saved every month for

The next 10 years or more for replacement of equipment)

Thus total monthly debit = 400,905 naira

Profit = monthly income – monthly debit

882,400 – 571,500 = 310,900 naira

Therefore, every month from 32 weeks, a profit of 310,900 naira is expected.

This will also increase in geometric progression as the farm increase in capacity of birds.

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