A FEASIBILITY STUDY BUSINESS PLAN

ON
POULTRY FARM

WRITTEN BY

NAME: UKOYO, OTOBONG AMOS

REG NO: 17/EG/CE/923
DEPT: CHEMICAL ENGINEERING
FACULTY: ENGINEERING
SCHOOL: UNIVERSITY OF UYO

SUBMITTED TO:
THE COURSE COORDINATOR:
COURSE CODE: GST 211
COURSE TITLE: ENTREPRENEURSHIP
DEVELOPMENT
LECTURER:
 BUSINESS DESCRIPTION
INTRODUCTION
Feasibility Study on the establishment of a Poultry Farm is based on the survey made by
UKOYO, OTOBONG AMOS, and the business will be one man business wholly own by
UKOYO, OTOBONG AMOS. The name of the poultry farm will be named DIVINE
FARMS VENTURE and will concentrate on sales of eggs and table meat bird (boilers).
We will supply birds and eggs to different quick service restaurant in South South Nigeria
and our vision is to be one of the known poultry farm product supplier in Nigeria with a
mission to raise healthy birds at a very profitable venture.
From the research that was carried out it was discovered that the demand for eggs and bird
meat is not fully satisfied around some areas of Akwa Ibom State, though they are already
existing poultry farms operating around borders of Akwa Ibom and Rivers State
environment, the poultry farm will be sited at Uyo Local Government area in Akwa Ibom
State a neighboring environment to Rivers State, there are high demand in some part of
Uyo, Ikot Abasi and some part of Rivers State. These legal requirements for the
establishment of this venture such as local government revenue (tax) per month and
security payment (vigilante) per month have been inquired and will be carefully complied
with.
The venture will help in providence employment to the locals meeting the demand of eggs
and making the price affordable in future, DIVINE FARMS VENTURE intends to
develop into other livestock farming structures such as turkey, duck, guinea fowl and quail.

My Business Plan Objective

 To achieve the sales growth targets by the sixth month and by end of year one.
Aggressive gains in market share and average monthly revenues in year two.
 To increase the number of institutions and corporate bodies who book our products.
 To achieve net profit in year one, increasing in year two, by containing costs and
meeting sales goals.
 To provide quality sales service and products at fair and best possible prices
Goals for My Business Plan
To be the leading poultry meat and egg producer in the environs we are situated in Nigeria
through the provision of excellent sales services and products.

Vision for my Business Plan

To provide a one stop location for accessing excellent and high quality poultry meat and
egg products in desirable and conducive environment while offering products at fair and
best possible prices

Mission for My Business Plan

To exceed the customers’ expectations by providing high quality services products and
exceptional customer care services in a loving and caring way.

THE NEED OR SOCIETAL PROBLEMS MY BUSINESS IDEA WILL ADDRESS:

My business will address the biogenic need which is hunger and nutrition. We will solve
this problem by producing meet and egg. Most meal in Nigeria is not complete without
poultry input like meat or egg. Nigeria has over 170 million growing population which
means a huge demand for egg and meat. With increasing awareness on the health
implication of red meat, there is an ever increasing demand for white meat and birds are a
source of white meat.
My business will also address the prevailing food poisoning majority caused by infected
poultry brought to the community. It will also address the issue of malnutrition and sales of
infected chicken. It will also alleviate unemployment in the community which has resulted
in various forms of social vices such as robbery, raping, kidnapping threatening the
community.
My business will address the issue of poor and low quality broiler meat and low nutritious
and hygienic eggs. It will solve this problem by provision of excellent semi-processed
broiler meat of different varieties and fair and best possible prices.
 IDENTIFICATION AND ASSESSMENT OF POSSIBLE COMPETITORS:
There are various competitors’ presents for the DIVINE FARMS VENTURES. The
names of the competitors are Fornex Farms Ventures and Amighty Poultry Farm not only
the domestic competitors but also faces competition from outside the State like Rivers
State. All competitors have adopted approximately same price policy and quality of
product so to compete with them is today’s time has become more difficult.
As we see that there is a lot of scope for growing Poultry Farm Company. So there is also
big threat of new entrant in the industry. The recent new entrances in market are Venex
Poultry Ventures, Keke Sum Farms etc. Their business is also expanded and they are also
keen to establish themselves as the best company.

Competitor Assessment
 Quality processed product and good relationships with vendors.
 Hygienic and neat processing facility.
 Using the latest, state-of-the-art restoration production systems and computerized
case tracking
 Outstanding customer service and faster processing duration.
 Fair and best possible prices and discount offers.

HIGHLIGHT OF MY IDEAS SUPERIOR TO THOSE OF MY COMPETITORS:

(1) Product Differentiation: Since customers have so many different options when it
comes to selecting their food, my business will take not only new but very familiar
products and differentiate them from competitors by communicating the product
awareness, exceptional quality and other unique characteristics
(2) Freshness: Freshness is the customers’ top purchasing factor when it comes to
selecting their food. My company will ensure that products are fresh to make my
business to stand out.
(3) Local: Many customers feel that buying local is important. My company will
communicate sourcing or long-standing history in a community with words like
“authentic”, “seasonal” and “traditional”
(4) Convenience: My Company will provide preparation and “involvement”
alternatives to exist for the customers with products like pre-marinated meat or
protein wraps that can be eaten by the mobile customer.
(5) Variety: My Company will focus on creating “healthy” foods and conveying this on
packing with words “minimally processed” or “organic”. My company will provide
indulgent food to customers that will need it and also make the food taste great so as
something that will lead to the repeat purchase.

POSSIBLE HINDRANCES TO THE SUCCESS OF MY BUSINESS IDEA

1. Diseases and Dead of Birds:
Disease and dead of birds have been discouraged from poultry production, given
frequent dead of birds recorded in recent times coupled with birds’ diseases. This
challenge has forced poultry farmers to sell the products at low prices without
considering making profit. This problem can hinder the success of my business idea.
2. Lack of Funds
In most cases, lack of collateral to collect loans from commercial banks has been
another hindrance staring at poultry farmers and production of poultry products in
Nigeria. Hence, an inadequate fund to purchase birds feeds has lead to decrease in
poultry production in Nigeria. Lack of adequate fund can hinder the success of my
business idea.
3. Inadequate supply of Protein for Consumption:
Poultry products are major source of protein for human consumption, but
unfortunately, the supply of these nutrients from poultry production does not meet
the demand of protein consumption, occasioned by high cost of animal feeds. This
challenge has been one of the problems facing poultry production in Nigeria. The
success of poultry production is hampered by this challenge hence, has lead to
insufficient supply of nutrients. Inadequate supply of protein for consumption can
hinder the success of my business plan.
4. Lack of basic Information:
 If you want to succeed in any business in life or anything at all, you need the right
information about that thing. Getting the right information will help my business to
get reward on time. Lack of basic information can hinder the success of my business.
5. Failure to find trained and experienced labour
6. Loss of sales
7. Overlooking competition
8. Not satisfying my customers
9. Failure to buy feed from a seller or company due to failure to deliver.

BENEFITS OF MY BUSINESS IDEA TO VARIOUS STAKEHOLDERS ARE

1. I will benefit from increase in number of layers that will bring increase profit and
income.
2. I will benefit from increase in number of egg production.
3. Poultry farming creates income and employment opportunity for the people.
4. Poultry farming is a continuous source of income to government.
5. It gives rapid return on investment to investors.
6. Poultry farm require little water from owners.
7. Poultry dropping are sources of fertilizer to government, society and owners.
8. Poultry farm offer full or part time employment opportunity to the society.
9. Poultry eggs and meat are highly nutritional value to investors, owners and
government.
10. Industrial Use: Poultry products are used in vaccine preparation, leather soap, cake
making, paints, animal feeds, fertilizers, cushions, mattresses there by creating
employment opportunity to people.
11. Research Purposes: Readily available chicks at a time are advantageous favouring
successful research carried out upon them.
12. Income: Poultry generate income to government by contributing to the nation’s
GDP. It’s contribution to Nation’s GPA is 3.1%.
13. Employment: Poultry marketing and its products provide employment opportunities
to the people which in return allay poverty.
14. Environment/Ecological Balance: Poultry manure aids maintenance of the soil
fertility and the birds also keeps ecological balance through eating different insects,
worms and household waste.
15. Government benefits from Poultry farming by increasing the population in a country
and also heightens the demand for foods especially protein and in meeting those
demands for animal proteins. Poultry farming helps animal production.

Strategy and Implementation Summary Objective

 To increase number of our client by 20% within 2 years of existence
 To evaluate our strategic marketing by every three months
 To keep and maintain hygienic farms for healthy eggs and birds

Tactics and Strategy Impacts

DIVINE FARMS products will be priced at affordable rate. When a markup is placed on
any of our products, customers will be willing to pay because of the affordable price.
The venture to be established is a poultry farm that will concentrate on the production of
eggs and sales of broilers, birds because of the fund required the venture will start as a
small scale business having the population of three Local Government Area of Akwa Ibom
State, which are Uyo, Ikot Abasi and Ibesikpo Asutan are target market. The farm site will
be a permanent land and will need necessary equipment for its operation as it is entirely
new firm to start from the scratch.

Operational Plan
The firm will be a commercial poultry farm; therefore it will require a full time labour and
geared towards productivity on a scale for the sales of egg and sales of broiler birds.
For egg production, birds usually starts to lay at 18-22 weeks of age and continue to lay for
Twelve months (52weeks) on average laying fewer egg as the new mounting period. The
typical production cycle last about 17 months (72 weeks) and involves three district phases
as follows:
PHASE 1: Pullets or broilers: This phrase last from 0 – 8 weeks during which small chicks
(pullets) are kept separately from broilers.

PHASE 2 (GROWERS): This period concerned is between 8 – 21 weeks of age. Growers

are the future laying birds and the way they grow up will largely determine how well they
do in the laying house. Therefore management during the growing period is very
important.

PHASE 3 (LAYERS): The laying period is taken to have started when the birds reach 5%
egg production on a daily basis. The laying period continues until the birds are sold at the
end of a laying period of normal length or are force mounted Housing time starts with the
beginning of the laying period. The number of birds housed is the number of pullet in the
laying house when egg production starts.

Market Analysis
Most meals in Nigeria are not complete without poultry output like egg or meat. Nigeria
has over 170 million growing population that demand for meat or egg on a daily basis.
With increasing awareness on health implication of red meat, they are ever increasing
demand for white meat and livestock are source of white meat.

Marketing Strategy
As I mentioned earlier, resident and families of three local government of Akwa Ibom
being our target market awareness will be made by means of advertisement. The
advertisement will be made on flyers, handbills, and one on one marketing will be done to
eateries, restaurants and companies that demand for our product. Our major market
aggression will be supplied to local markets makers of Cake and Ice Cream, Local
restaurants and hotels.

Marketing
Marketing activities include among other grading quality, promotions, packaging and value
adding these activities are essentials as they will lead to large volume of sales of product
quickly as possible resulting to increase of income.

Grading
Eggs would be graded by size and labeled according to its weight. During selection and
grading, care would be applied to ensure that weight is uniformed to avoid rejection from
customers

Business Evaluation of Farm/Finance

This evaluation is based on birds i.e. layers and broilers
Layers are those birds that lay eggs while broilers don’t lay egg. This evaluation will be
based on 5% normal loss i.e. at the process of taking care of the day old chicks; it is
possible to lose 5% of the birds to sickness. Therefore if we start with 1000 birds, it is
possible for us to lose 50 birds at the process of rearing them. While broilers if we start
with 400 birds it is possible for us to loss 20 birds to diseases at the process of rearing
them.

Layers
If layers are been rear, it takes 18 weeks to start laying egg, if we start with 1000 birds and
we loss 5% of it so we have 950 surviving layers and with proper management of feeding
and other maintenance of the bird it is possible to get 90% egg production that is 855 per
day and 5985 pieces of egg every week. If we loss 1% of the egg that is 60 pieces every
week so we have 5925 pieces p/weeks. 197 crates of eggs every week and crate of egg is
sold accordingly to its size. Small sizeN500, Medium N600, Big size N700. Assuming we
use medium size, that is N600 which result to N118500 sales of egg every week.
After laying eggs for 52 weeks (12months) we dispose the layer and it will be sold at the
rate of N700 per layers
Therefore, before changing the stock we might have made N6,162,000 from sales of eggs
and N665,000 from the disposal of old layers making a sum total of N6,827,000 for the
period of 52 weeks (one year)

Broilers
Broilers do not lay eggs but grows to table size when they are from 8 weeks old upward.
We are project for 400 birds of broilers and if we have 380 surviving birds sold at the rate
of N1,500 each, making a total sales of N570,000 for the period of rearing the broilers.
Making it total sales of (570,000 x 3) N1,710,000 for period of 12 months
Total Sales expected for 12 months.

Layers N6,162,000
Broilers N1,710,000
N7,872,000
Capital Expenses
2 plots of land @ N150,000 N300,000
Block 2000 pcs @ 110 N220,000
Cement 60 bags @ N1800 N108,000
Cement Carriage N3,000
Woods N151,700
Roofing Sheets N126,000
Roofing Slate N25,000
Ceiling Slate N15,000
Reggie’s N7,500
Nails N12,000
Net 15 bundles @ N4000 N60,000
Iron door N43,000
N1,071,200
Sands
Stone Big 2 tipper @ N25,000 N50,000
Sharp sand (Mayans) N20,000
Soft Sand N22,000
N92,000

Tools
Dayold feeders 30pcs @ N120 N3,600
Dayold Drinker 15pcs @ N200 N3,000
Feeders 60pcs @ N550 N33,000
Drinkers 12pcs @ N2500 N30,000
Shovel & Headpan N2,000
Thermometer (Digital) N8,000
Scale (Digital) N10,000
Geepee Tank 1500litres N23,000
Geepee Tank 500 litres N14,000
Nylon 7 pcs @ N700 N4,900
Workmanship
Carpenter N65,000
Bricklayer N80,000
Miscellaneous N130,000
N275,000

Business Registration N20,000

Production
1000 pullets @ 140 N140,000
400 broilers @ 130 N52,000
N192,000
Operational Expenses
Feeds, Vaccines & upkeeps N1,330,000
Salaries and stationeries N240,000
N1,570,000

Summary
Capital expenses N1,781,700
Operational expenses N1,570,000
TOTAL EXPENSES N3,351,700

Total Sales For Period Of 12 Months

Layers N6,162,000
Broilers N1,710,000
N7,872,000
Profit = Sales – Expenses
For layers during egg production, the expenses are half of sales of egg will go in for feeds
and other operational expenses. i.e. N6,162,000 divide by 2

6162,000 = 3,081,000
2
For broiler the cost of production till the birds reaches table size before disposition is
between N900 to N1000. So therefore let put the bench mark to N1000. If N1140 broiler is
sold at the rate of N1500
1,710,000 – N1140,000 = N570,000

The profit of layers for the period of 12 months = N3,081,000

The profit of broilers for the period of 12 months = N570,000
Total profit = N3,081,000 for layer
 N571,000for broiler
N3,651,000

CONCLUSION