Starting a Poultry Farm for Beginners (Step By Step Guide)

Gotten several questions regarding the issue of starting a poultry farming business. Are you interested in starting a poultry farm (chicken + egg production)? If YES, then here is a sample poultry farming business plan template for beginners.

Poultry farming is usually the business I recommend for retirees and individuals who are passionate about livestock farming. In the past, people were nonchalant about breeding birds or cultivating crops for profit.

But with the recent global burst in population and worldwide demand for food, people are now beginning to realize the potential of providing the most important basic needs of man.

Poultry farming is a viable business anytime any day; and to be sincere with you, it’s a business I have been considering for some time now. Below are reasons why I consider poultry farming a profitable business?

3 Factors that make Poultry Farming a Profitable Business

There are a lot of factors that make the poultry farming business a profitable one but I will be highlighting only three major factors:

• Food is one of the basic needs of man. Regardless of the economic situation, human beings must feed, and since domestic birds are consumable; that makes poultry farming feasible.

• My country Nigeria for instance has a population of over 150 million and growing; bear in mind that a huge population means a huge demand for food (eggs and meat).

• With the increased awareness of the health implications of red meat; there’s an increased demand for white meat and birds are a source of white meat.

But before I go into the details of starting a poultry farming business, I want to emphatically state that the information provided in this article does not in any way replace the need for you to conduct a feasibility study, write a business plan for your poultry farm and do your own due diligence.

Secondly, the information shared in this article applies to any locality; be it the United States, Canada, India, the United Kingdom, Nigeria, Ghana, South Africa, etc. Without wasting your time, below is a step-by-step guide on how to start your own poultry farming business.

1. Select your Poultry Niche

The poultry industry is a broad niche. There are many sub-sectors in the poultry industry which you can tap into. When poultry farming is mentioned, a lot of people take that to mean chicken rearing or turkey rearing alone but poultry farming is a very wide business with different aspects. Below are niches in the poultry business:

• Egg production (Layers breeding)
• Meat production (broiler breeding)
• Chicken breeding (Hatchery)
• Poultry feed production
• Poultry equipment manufacturing
• Egg and meat processing, packaging, and marketing
• Poultry marketing and consultancy

So, you see that poultry farming is very wide. Therefore, you have to choose your area of specialization. Of course, if you have enough capital and the technical know-how nothing stops you from doing all the businesses under poultry farming but it is always better to go back to the drawing board, find out which aspects of poultry farming are more profitable in your area in terms of demand and income and then select the most attractive aspects to concentrate on.

2. What type of bird will you be focusing on?

Another important factor to consider is the type of birds you wish to rear. There are several types of birds that you can rear. Poultry farming can further be classified into the types of birds:

• Domestic fowl or Chicken (Broilers and layers)
• Turkey
• Guinea fowl
• Pigeon
• Duck
• Goose
• Peacock
• Quail

You also have to decide on whether you want to rear layers or broilers. Layers are usually raised mainly for laying eggs so if egg production is your area of specialization, you would need to stock your farm with layers but if you prefer to opt for meat production instead, then you would need broilers instead because broilers can grow very fat and gives more return on investment because they weigh a lot more than other breeds. But for this article, I will be focusing on poultry breeding for egg and meat purposes concerning domestic fowl.

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3. Start-up Capital Investment

The poultry farming business is capital intensive; depending on the scale, location of your farm, and the type of management technology used. A small-scale poultry farm being run behind your house may require a capital of between $500 – $1,500. A medium-scale poultry farm may require $2,000 – $5,000 and a large-scale poultry farm may require a start-up capital of $10,000 and above. As I stated earlier, scale is directly proportional to capital.

4. Poultry Location

A good location is vital to the success and profitability of your poultry farm. An ideal poultry farm should be sited where there’s a large availability of cheap land and at the same time; should be close to areas with high population density. It’s not advisable to site your poultry farm within a residential area because of the offensive odor it produces.

While it is smart to start your poultry farm in a place where the odor and noise would not disturb other people, you should also consider the security factor. Lands in sparsely populated settlements are cheap and you would have fewer issues with community disturbance and zoning but it may be far from your market and buyers. You need to find a balance and look for a place that is favorable to you and would also be favorable to your customers at the same time.

5. Housing your birds

Another important factor to consider is the poultry housing system and fencing options. The poultry housing system determines up to 40% of the rate of success you would achieve in poultry farming. A good housing system is very important for your poultry farm. The housing systems commonly used in poultry farming are-:

• Extensive system: Range and fold unit
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• Semi-Intensive system: Standard semi-intensive unit and straw yard
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• Intensive system: i. Deep litter, ii. Wire and slated floor, iii. Straw yard, iv. Battery cage

a. Free Range System-: Under the free-range poultry farming system, chickens are allowed to roam around on their own in search of food. This system cannot be used for commercial poultry farming because of the high level of risks involved.  

b.Deep Litter System-: This system involves spreading wood shavings or sawdust on a concrete ground with the chickens placed on the floor and the dust serving as a ‘cushion’ for them. The dust is changed regularly, either by removing and replacing or by layering. A deep litter system is used by a lot of poultry farmers because it increases efficiency and makes it easier to manage large flocks of birds but it allows for a faster spread of diseases when there is an outbreak and also makes it difficult to fish out unproductive birds.

 c. Battery Cage System-: As for the battery cage system, metal cages are constructed inside a building to house the birds. The cages are usually split into different compartments to house small groups of birds. The cages also contain feeding and water troughs as well as laying nests. Bird droppings fall on the floor and are cleaned mechanically by a scraper.

This method is considered to be the most effective for egg production but the major downside of this method is that it is more expensive to construct and maintain compared to other forms of poultry housing systems. If you are running a poultry farm for commercial purposes and you intend to get the best out of the business; concerning high birds’ productivity and efficiency. 

Then you should consider housing your birds using the intensive system. Note that each of the three housing systems has its own advantages and disadvantages. Lastly, your poultry housing structure should be built at a particular angle; taking sunlight and wind into consideration.

 

6. Poultry equipment and appliances

There is a very long list of equipment and facilities to put in place to fully manage a poultry farm. You would need to construct a house for the birds, provide feeders and drinkers, a good waste disposal system, a source of water, lightning, and heat, egg crates, and storage space for keeping feed and eggs. Therefore, you should make a list of all the items you would need, find out the prices, and compare different prices to further give you an idea of the costs of setting up the poultry farm. The following equipment may be needed for your poultry farm and their uses:

• Feeders
• Drinkers
• Perches
• Nests
• Crates
• Lighting system
• Waste disposal system
• Incubator
• Heaters or brooders
• Egg tray
• Cages and coops

7. Feeding your birds

Feeding is a major aspect of poultry farming. In fact, about 70% of your expenses would go towards poultry feeding. Therefore, it is imperative to figure out the feeding aspects of business before you go into it. There are two ways to go about feeding in poultry farming:

 

• Producing your feeds by yourself
• Buying already-made poultry feeds

I recommend the former for large commercial poultry farms because it helps you to save a lot of money on feeding costs. You can easily learn how to make poultry feeds, purchase equipment, and start producing feeds for your farm. You can even make some extra income for yourself by selling to others but you must get the right feed formula and ingredients that would enhance the growth of your birds.

 

8. Poultry Farm staffing and manpower

Operating a poultry farm is not labor intensive if the use of technology is employed. Concerning staffing, the number of manpower needed is also dependent on the size of your farm. But some must haves should be admin officers or managers; who will oversee the day-to-day running of your business. Your manager can also double as your accountant to cut down costs. 

 It is also advisable you have personnel who will reside permanently on the farm to monitor and see to the well-being of your birds. You will also need security personnel that will monitor the inflow and outflow of people around your farm; and most importantly, guard against theft. Aside from these few mentioned, you can add more personnel to suit your business needs.

9. Accounting

I mentioned in one of my previous articles how a lot of poultry farmers take the accounting and record-keeping aspects of their business for granted. Poultry farming is just like any other commercial business out there and for you to track your performance and productivity, adequate records must be kept. 

 You don’t need to have an accounting background or spend hours on record keeping or accounting for your farm; just purchase a farm management software, install it on your computer and there you are, you would be able to know how your business is doing and whether you are growing or not.

READ ALSO: Starting a Trucking / Haulage Company from Home

10. Health

Just like you need regular health check-ups to stay in good shape, the birds in your farm also need regular check-ups. They need proper vaccines and medications to prevent diseases and promote growth. You should have a consultant, a veterinary doctor who would be in charge of giving vaccinations and providing proper health care for the birds. Chicks need more care after they hatch especially within their first 3 weeks.

 

11. Marketing

Another factor to give consideration to is the marketing aspect of your poultry business. You have to find a way to reach your customers and this would be done by employing the right marketing techniques. Therefore, before you start a poultry business, you should really consider the marketing strategies that you would use to break into the market.

 

12. Projected return on investment

The incubation period of the domestic fowl is 21 days. You can start selling off your birds as early as 8 – 12 weeks but full maturity is reached between 20 – 24 weeks. The payback period of a poultry farming business is between 3 – 5 years.

 

High start-up capital

The very first factor you have to give serious consideration to is capital. Just like every other business, poultry farming needs sufficient and proper funding. This is because the amount of capital you have to invest has a lot to do with the level of success you would achieve in poultry farming. 

If you have enough capital, you will be able to put facilities that would increase your productivity in place. You cannot do well as a livestock farmer, especially poultry farming when you don’t have enough funds. 

You need money to purchase land for the farm, to construct and equip the farm, to hire and pay staff/laborers, and also to feed and provide healthcare for your birds. Without proper funding, you will struggle to keep your business afloat but with enough capital; business is made easier. So you should do your financial analysis very well and ensure you have access to cash because nothing kills a business faster than a lack of money.

Outbreak of diseases

When the environment is dirty, disease and infection are inevitable. Birds like chickens are very sensitive to environmental changes. If the poultry environment is not properly taken care of, the chickens will be exposed to diseases like bacterial infection. So as a poultry farmer, you must ensure that the poultry environment is kept clean and disinfected. 

 You must avoid bringing in contaminated equipment, vehicles, and foot wear. You must always de-worm your birds and check them constantly for exo-parasites such as mites. Also, visitors should not be allowed into the poultry environment, and ensure that you sterilize your hands before touching the birds.

Nonavailability and affordability of vaccines

In the agro-allied industry, especially poultry farming; this particular challenge affects the small-scale poultry farmers more because; unlike the industrial or commercial poultry farmers who can afford the vaccines, the small-scale poultry farmers can’t afford the vaccines.

 

Adulteration and high cost of poultry food

The price of poultry food is quite costly and birds consume a lot. So most poultry farmers economize or ration the food given to the birds and this affects the output. Also, adulterated poultry food flooding the market is another challenge for poultry entrepreneurs. This is because the adulteration utters the necessary nutrients the birds need to grow well, thus making them unhealthy and reducing their immunity to diseases.

As a final note, I believe you have gotten a clue about the challenges you should expect as a poultry farmer and the best solutions to them. So start now by creating a counter-strategy to tackle these challenges and success will be yours.