BUSINESS PLAN

FOR

NAME OF FARM

FARM

 POINT OF LAY BIRDS

 EGG PRODUCTION

BY: YOUR NAME

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 EXECUTIVE SUMMARY

This Plan is put in place for raising of poultry layer birds from 17 weeks
Point of Lay (POL) to maturity at 21 weeks for the purpose of producing
table eggs using battery cage system of poultry management. Solid
Treasures poultry farm will commence operation from 2 plots of land in
SAGAMU, OGUN STATE. 2500 birds at the age of 17 weeks will be
procured from a reputable farm, stocked and raised to lay at age 21 weeks.

In the first year at peak production, the 2500 birds’ farm should produce
about 80 crates (30 eggs/crate) per day and consuming about 0.40 tons of
feed/month (approximately 7 and half bags of 25 kg) per day. The average
monthly revenue could sum up to ₦1.56million in revenue and about
₦0.65million as gross profit after deduction of cost of feed and
medications on monthly basis. Spent layers would be sold at the end of one
year and 6 month of lay and utilised in the purchase of replacement birds.
Annual revenue could be up to 21.95 million and profit grossly could be
up to 5.8 million in the first year.

STOCKING PLAN
The Land poultry pen would have the following facilities:

a. Two-roomed staff quarters.

b. Pen.
c. Perimeter wall.
d. Manure pit.
e. Generator house.
f. Bore hole and overhead tanks.

Following the completion of a-f (g) above, Semi Automated Battery will be
purchased and installed in for 2500 capacity birds.

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TABLE 1. INITIAL INVESTMENT COST
ITEMS COST(₦)
1 LAND (2 Plots) 300,000
2 LAND CLEARING 40,000
3 PEN, STORE, GEN & STAFF HOUSE BUILDING 800,000
4 CAGES (27) 2,160,000
5 INSTALLATION & TRANSPORT 60,000
6 LABOUR 200,000
7 BORE HOLE or WELL & PULPING MACHINE 200,000
8 SEPTIC TANK 3,000 LIT (4) 140,000
9 BIRDS (POL) 3,000,000
10 VICCINES & MEDICATIONS TO LAY 150,000
11 FEED TO LAY 940,000
12 GENERATOR (12kva) 80,000
13 FEED MILL GRINDING MARCHINE 45,000
14 SCALE 35,000
15 STAFF SALARY FOR 2 MONTHS ( 3 Staffs) 90,000
16 CONTINGENCY 100,000
17 UTILITY/FUEL/PHCN 100,000
18 ADMIN / CONSULTANCY / SUPERVISION 200,000

TOTAL 8,640,000

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BUSINESS OVERVIEW OF POULTRY MARKET.
Egg production is the most popular form of poultry farming because egg
consumption cuts across wide divide. Table egg production remains the
most popular form of poultry practice in Nigeria because of the following:
i. Pullets are hardy and more resistant to diseases relative to other
birds.
ii. Eggs are commonly consumed
iii. Unit of production which is an egg is relatively affordable.
iv. We still haven’t met the demands for Egg in Nigeria.

Poultry production comes in different forms ranging from parent stock

breeder meat, egg production, quail production, turkey production, ostrich
farming, duck farming, geese farming and ornamental bird rearing among
other. The business could also come in specialization such as brooding,
Point of Lay production, liquid egg package, egg trading, cold room
marketing, day old chicks, feed milling, birds transportation or egg deport
business.
Since the industry is vast, entrepreneurs are advised to focus on an aspect
of the industry and with time add other aspect either for vertical or
horizontal integration in Nigeria. This industry is still grossly untapped and
any part of the industrial possesses great potential. Specialization and
continuous improvement on skills is always paramount.
Poultry industry is a multi billion naira industry; the major hindrances to
the growth of the industry in Nigeria ranges from absence of credit, high
interest rate, high cost of maize, unavailable electricity which is important
for cold rooms, incubators and operation of automated cages. This
industry is fallow in Nigeria, hence a high prospect. Right now, the demand
for egg, broiler meat, day old chicks, day old pullet etc remains
overwhelmingly high.

VISION AND MISSION

Mission: -Building a poultry that is efficient and progressive.
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DESCRIPTION OF BUSINESS
Solid Treasures Poultry plans to participate in chicken egg production. The
business entails keeping of chicken from POL (Seventeen weeks old) in
cages. The caged birds at the age of 19 - 22 weeks start to lay eggs. The
eggs are packed in crates, transported to the city where they are
distributed to customers. The laying birds by the age of 60 to 70 weeks of
laying, are sold out as spent layers for meat.

CRITICAL SUCCESS FACTORS OF THE BUSINESS

A. Finance: Fund must be available as at when needed according
to plan to avoid creating stress factors which would cost so much in
revenue loss.
B. Expertise: The poultry industry is knowledge-based. Hence,
employment of expertise is imperative. Consultancy is paramount.
Training and retraining of staff is sacrosanct no matter how small the
level and acquisition of knowledge of modern trend is a factor to
growth.
C. Housing: Proper ventilation and spacing is a critical success factor.
Position your house to give the birds’ maximum ventilation and to
reduce heat.
D. Bio security: Disease entrance and spread are as a result of
any form of breach in bio security. Foot bath, car bath, prohibition
of unauthorized persons etc.
E. Watering and water source is of great importance. Foul water
source or water getting contaminated in poultry house signifies that
the farm will fail. Water should be managed to ensure that clear and
clean water is available for bird ad libitum.
F. Nutrient: Most farm fail because they wanted to reduce cost
of feed by compounding. Farms should only venture into self-
compounding on ground with available experiment. All
nutrients must be readily available in the market to prevent
malnutrition.
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 G. Sales: Egg produced must be sold. Proper marketing with vigorous
advertisement will ensure the product is made available to the target
market.
H. Management: Pilfering shrinkages, indulgence,
misappropriation are few of the several epidemics that constantly
plaque poultry in Nigeria. Workers steal eggs, birds, feed, money and
even drugs if they are not properly monitored. Sales agents and
drivers could sell at different prices and report differently.
Effective management of this ends are critical factor.
I. Administration: At full capacity, Management is separated from
administration, when the owner is not directly involved in day to day
or at least weekly management. Absentee farming is hazardous.
Someone with a stake in the venture should give quality time to it to
survive.

CURRENT STATUS OF THE INDUSTRY

The poultry industry in Nigeria is largely untapped.

CONTRIBUTION TO NATIONAL AND LOCAL

ECONOMY
The poultry will provide employment in the first year for at least three
people. By five years, if the capacity is tripled, (which is possible), it would
employ about 14 persons. Contractors and suppliers should also benefit.
Nationally, it will reduce cash flight or loss in Forex and generate about ₦40
million per annum in revenue. The banks, insurance companies and
Agricultural consulting firms shall all be beneficiaries with the attendant
tax going to the government. The investors will also find a means of
expressing their entrepreneurial skill. The manure will service proximal
farms and far farms. Egg marketers, maize or feed suppliers, transporters,

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spent birds’ marketers etc will all be affected positively. The impact on the
economy will be positive.

MARKETING STRATEGY/PLAN
Solid Treasures Poultry should employ a Marketer at full capacity. He
would be employed to sell the eggs from one egg deport to another/
through the marketing activities, many clientele base will be created. These
customers will be allocated dates. They either pick up the eggs from the
farm on their dates or have it delivered with the farm van at a price. All
customers will only be given allocation with a confirmation of a bank
payment or at times cash. To expand the clientele base, advert will be
placed on different form of online channels. The marketer or the owner will
mobilize market via shop to shop awareness at the initial time. Thereafter,
referrals from old customers will be enough to meet the supply need.

PRODUCTS ARE PACKED IN CRATES

Plastic crates should be preferred because of their durability; two hundred
packs (200) could be purchase with N20, 000. A crate carries 30 eggs, 10
crates can stay on top of each other. The farm van moves these eggs every
evening to the city in close proximity to the potential customers or directly
to their depots within Shagamu, Lagos and Ibadan. Egg when refrigerated
can last up to a year. Rooms in which eggs are to be kept for upward of one
week could be air-conditioned. Direct sunlight and excessive heat above
30°C enhances egg spoilage, hence good ambience for the product shall be
enhanced. Effort shall be put in place that eggs shall not spend more than 3
days before they are sold. Person to person marketing is to be employed to
gain good customer base.

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PRICE ENHANCEMENT STRATEGY
Eggs cleaned packed in transparent crates and labelled shall be packaged to
target supermarkets, departmental stores and malls. Same packages will be
done for a dozen eggs. With addition of this value, revenue increase as well
as sales outlet. Packed 30 eggs could go for N750 and a dozen for N350.

ADVERTISEMENT
Massive awareness on the company shall be done via traditional media.
Initial shop to shop visitation to advertise the availability of eggs will be
done. Advertisement would also be place on the internet. The eggs would
be delivered to customers at a price. Minimum order would be 100 crates
for location delivery.

COMPETITION
All egg producers in Oyo and Lagos and Ogun States are competitors. To
remain outstanding in the market, the eggs must be cleaned and labelled,
the customers shall be treated nicely and innovation brought into
packaging and marketing. Even when one person offers to buy off all eggs
produced, such offers shall be rejected because you cannot keep eggs in one
basket, customer base shall be wide and diverse.

TARGET MARKET
1. SHAGAMU/LAGOS STATE/OGUN STATE/OYO STATE.
2. Mile 12/ Ketu.
3. Ikeja.
4. Lagos Island.
5. The rest of Lagos.
6. The rest of Ogun.
7. The rest of Ibadan
8. The internet community.

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PRODUCTION PLAN
(organogram should be created based on the focal point of entry)

FARM REPORTING DETAIL

(Reporting details shall be in accordance with the organogram.

OPERATIONAL DETAIL
If not living in the Farm, Attendants and manager get to the pen latest
8.00am. Mix disinfectant and pour at the entrances. Change into work
cloth and foot wears. Soak their legs with the disinfectant as well as wash
hands with same. Each nest is observed for discomfort birds; sick or dead.
Such animals are then culled and recorded. Water is checked, each nipple
is tested to ensure normal flow. Blocked nipples are cleaned or replaced.
Feed is automatically (if set) delivered into the feeding troughs or is given
to the birds by evenly pouring them into the troughs. Eggs are packed from
the cages using basket or directly into the crates. Record is taken; this shall
include number of morbidity, number of mortality, number of eggs,
abnormal observation on feaces or in the pen etc. The eggs now packed in
crates, are taken to the store room for onward transport out to the city
facility or to distributor.

WATERING DETAIL
Water analysis shall be carried out on the borehole. Routine analysis shall
be bi-monthly. Water shall be pump directly from the borehole into the
main overhead tank. Water from the main overhead tank get to smaller
overhead tanks situated inside the housings. Drugs and vitamins can be
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added here. The water from here flows to the calibrated tank attached to
the watering troughs. The calibrated tanks here can serve to dispense
vaccines. Routine laboratory test shall be done to ensure good water
quality. The water source shall be far from septic tank or other sources of
contaminants.

STAFF HOUSING
Attendants shall and should be housed in the farm or in close proximity for
the sake of emergency such as insect attack, late feeding, brooding and
security.

INFRASTRUCTURAL COSTS: see Table 1 above

CITY FACILITY
A shop within the town shall serve as the feed warehouse and as depot for
the produced eggs. Feeds from the company will be in truck loads. Sales to
other farmers will generate additional income and provide the farm with
reduce cost. When buyers buy from the farm’s egg outlet, it reduces
visitation to farm which has attendant risk of break of security and
biosecurity.
Following the completion of physical structures, Semi-automatic battery
cages of premium quality will be purchased and installed in for 2500
capacity pen. 27 units of 90 birds per unit capacity cages will be utilised to
hold 2500 birds.

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PRODUCTION PROGRAMME
The stocking plan involves the purchase of 2500 Birds as POL which will be
placed in the first year. The birds will be purchased at 17 weeks of age and
hence will take 4 weeks to come to lay. They should peak by age 30weeks
when they are 16 weeks in the farm and spent by age 70 weeks and
thereafter sold as Old Layers. Within one month, the Spent Layers should
have been sold out.
For each batch, a 5 to 10% mortality room is allowed.

PRODUCTION TABLE: Table 2

Based on plan to expand to 10,000 birds

Batch Week Cage LAYER CULL REMARK

(introduction) Grower
A 1 2500
6 2500 Lay
16 2490 Peak
B 65 3,500 1,750 Cull 1,750 and
Introduce 3,500
71 3,500 Lay
81 3,490 Peak
C 106 5,000 2,500 Cull 2,500 and
introduce 5000
112 5,000 Lay
122 4,990 Peak
D 171 10,000 5000 Cull 5000 and
introduce 10,000
177 10,000 Lay
187 9,990 Peak

NOTE: Age at introduction for all batches is 17 weeks old (though

there is room for flexibility)

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QUALITY CONTROL
Biosecurity measure will be put in place to prevent disease outbreak. Foot
bath for visitors and workers will be put in place at the entrances. Every
vehicle coming into the facility will also pass through a bath and get
sprayed. All quality control standards will be adhered to strictly so as to
produce a world class standard. Animals and materials will be kept away
from the poultry pens. Biosecurity training will be mandatorily given to
attendants and other staff.

COMMERCIALS
Input Requirement
The major material inputs required for the success of this proposed project
are Point Of Lay, Feed (Grower mash, and Layer mash), various types of
medications when needed and vaccinations according to schedule. The
current prices and sources of these inputs as stated below are safe,
dependable and readily available. Plan is to utilize Vital feed from a
reputable poultry feed. With the consumption of 1 ton per month of Feed
which is the expected requirement for 10,000-capacity poultry, Poultry will
be qualified for 5% discount on prices of Feeds from the feed farm as the
farm capacity increases.

Note: Prices of POL vary from season to season in the year. It fluctuates
between N950 to N1, 300/bird. POL will reduce time and cost spent on
raising to POL, the mortality and other risks but POL must be from
reputable farms with good vaccination record and source.

PRODUCTION PROCESS/OUTPUT
The birds upon introduction will be as Point Of Lay. They will be about 16
or 19 weeks and that is utilized for subsequent expansions in batches with
mortality in mind and a plan to raise a particular number for replacement
or expansion; POL Birds are placed in battery cages upon purchase from
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reputable farms specialized in POL production and fed on grower ration till
they start laying. From the time of lay, when egg production commences at
about 18 or 20 weeks, they are fed on layers mash till they become Old
layers. The birds will be kept in-lay for 60 to 70 weeks before they are sold
off as Old layers.
Appropriate medications will be given at the required stages in the course
of raising the birds. Bio-secured environment will also be ensured to
reduce the incidence of disease outbreak. A mortality rate of 20% room
should be expected. This is broken down as follows: 7% from Day Old Chick
to grower, 3% from growers to Point Of Lay and 10% from POL to the point
where they are sold off as spent layers.

Note: With any plan of expansion with DOC, facility for brooding and
rearing should be put in place before then.

PROJECTED REVENUE
The projected revenue from the project is mentioned in the summary. The
revenue projection for the first year in lay is in the figure of N21.95 million
from the sales of eggs and spent layers.

CASH FLOW PROJECTION

The projected cash flow for the Farm could be presented and attached on
excel format. Positive net cash balances are realized at the end of first
laying year. From the projection, the farm shows profitability.

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PROJECTED PROFIT AND LOSS
There is reasonable profit visible in the first year of the project due to
reduced investment cost but subsequently, it should record more
reasonable profits.

CONCLUSION
Solid Treasures Poultry shall be a success. Poultry Farming is a highly
developed industry. Its efficacy and productivity is a product of bringing
together of all the available industrial facilities, this can never be provided
enough by just one individual or company, hence the poultry will plan to
collaborate with investors and experts. The industry works effectively as a
network with different specialisation, bringing in diverse inputs. Also, to
avoid overcrowding of ideas and thinning of the limited resources, focus
will be on egg production for a long time under the supervision of an
experienced consulting firm. Success is granted, God being by our side.

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