Essentials Of A Poultry Farming Business Plan
A poultry farm is a remunerative business idea that is fast gaining popularity as one of the rapidly growing businesses, especially in the rural areas. Poultry farming is sometimes defined as a type of agriculture, where instead of crops, birds are raised commercially either for meat or for their eggs or both. The birds raised can be any from chicken, ducks, emus, young pigeons, turkeys, etc but usually in India chicken are more commonly raised owing to the greater demand and huge market for chicken eggs and meat. This demand for chicken products is across the globe, and not just restricted to India, therefore even opening the door for export opportunities for the poultry business.
Poultry farming is a great business idea as an increasing number of people are switching to eating healthy and incorporating protein into their daily meals and poultry products are a chief source of protein. Apart from that, the poultry business has several advantages, both for the business owners and the customers, such as-
- Customers get access to fresh eggs and meat that is organic and hygienically obtained following standard processing procedures.
- The prices of the products are reasonable thus making it possible for greater number of customers to purchase the items, which in turn increases the market reach for the business owners.
- Business owners on the other hand also benefit from raising chicken birds in the poultry business as they can get both eggs and meat from the same sources.
- Also, the rate of return in the poultry business is quite good as the products are sold at a good rate and also there is a continuous demand for the products.
- The business can be started on a small scale with the available capital for investment and can then be slowly expanded as the business grows and additional capital becomes available. Thus the poultry farm business is not restricted by a certain amount of capital requirement and can be started on a smaller scale too.
- Poultry farming does not require as much water and other materials and heavy equipment as compared to regular farming.
- Poultry farming can be done alongside regular farming as the need for materials is not too extensive. Additionally, the bird droppings from the poultry farm are rich in nitrogen which can thus used an organic source of the essential element nitrogen in the form of a fertilizer for the regular farming land. Thus, poultry farming business can indirectly benefit regular farming as well.
These are just some of the benefits of the poultry farming business. However aspiring entrepreneurs who wish to start a poultry farm must do so in a systematic manner, starting with learning about the poultry farm business, how to start a poultry farming and then making a detailed poultry farming business plan. A business plan will help entrepreneurs have a clear plan to refer to and follow the objectives from and also have a goal that can be revisited in case they lose sight of the vision they had for the business. For the business plan to be effective, a poultry farm business plan checklist is helpful to ensure that none of the points are skipped and that the plan is comprehensive. This business plan is also used while applying for a poutry farm loan for starting or expanding the business and must therefore be meticulously prepared such that the officials reviewing the plan get a fair idea of the business and approve the loan quickly.
Poultry Farming Business Plan
As described earlier, the poultry farming business plan is essential for the business and must therefore include certain information as below.
Exact Nature Of Business
The poultry farming business plan must include details regarding the exact nature of the business. A poultry farm business can further be classified into types and niche sectors which the entrepreneurs who are starting a farm need to decide on and mention in the business plan. This means that budding entrepreneurs must choose between a broiler or a layer poultry farm to start with. A broiler is where birds are raised for their meat and a layer is where the birds are raised for their eggs. The other aspects of the business include production of feed for the poultry or procuring it, processing of the eggs and meat, packaging of the products, marketing of the farm as well as the products which are an integral part of the business and need to be included in the plan. Arrangements for the housing facility of the poultry is another aspect of the business along with feeding facility and manufacturing of the feed, which need to be considered and mentioned in the business plan. All these details give an idea about the exact nature of the business along with the objective which is one of the main components of a business plan. The business plan can also be revisited over the years to be reminded of the vision and goals of the business, which is why they must be mentioned in the poultry farm business plan.
The poultry farming business plan must also include the capital required to start the business and expand it too. A poultry business requires capital for purchasing the land to set up the poultry farm or for leasing the land. Further, capital is also required to purchase the birds, to purchase their feed along with the feeding equipment and even build housing facility for the birds. Housing for the birds is vital for the poultry business and contributes significantly to the success of the business. Entrepreneurs can choose from the extensive housing facility which allows free movement to the birds, or a semi-intensive system which allows rearing birds partly in cages and partly in open areas. Entrepreneurs can also choose from deep litter system, slatted or wired housing system, or battery caged housing system for their poultry farm and the capital requirement will vary according to the housing system selected. Additionally, capital is required for processing and packaging of the poultry products as also for other equipment such as incubators, benches, watering pot, heaters, fencing, flooring, lighting, etc. Day to day expenses incurred while running the farm also need to be considered such as labour wages, electricity and water supply, transportation costs and any other miscellaneous expenses.
The business plan must give an estimate of the capital required taking into account all these costs and also consider costs for expansion in the future. The source from where the entrepreneur aims to get the funding must also be explicitly mentioned in the business plan. It could be a loan either from a bank or private financial institutions or from savings or in the form of borrowings from friends and family.
The poultry farming business plan must also include details about how the poultry farm business and the products will be marketed. Firstly, a rough market study and research on the competitors must be carried out to understand what the customer’s requirements are and what techniques the competitors are using to attract customers and carry out sales. Post the research, strategies for the marketing of the farm must be chalked down. These could include having a brand name, logo and caption for the poultry farm which helps create a brand for the business and an impressive image of the business that customers can recognize and relate to. A logo also helps differentiate the products of the farm from those of the competitors. Next, a website can be created to have a digital footprint and be in sync with the technologically advanced times. The website can be used to sell and deliver the products online along with giving an insight into the vision of the business and the quality procedures followed for rearing the birds, procuring the products and processing them. Further, marketing strategies can also be decided such as advertising via flyers, newspaper ads and blogs which talk about the nutritional benefits of poultry products or ways to choose high quality products. Participation in various events and offering attractive deals and schemes can also be used as a form of marketing and advertising.
All the planned marketing strategies must be mentioned in the business plan.
The business plan for the poultry business can further include information about-
- The type of poultry business the entrepreneur wishes to start, choosing from a sole proprietorship, a partnership, a limited liability partnership, or another suitable business entity, as deemed beneficial to the entrepreneur.
- The registrations and licences required for the poultry farm business, such as the FSSAI, GST registration and Udyog Aadhaar registration, all of which help conduct the business legally and in a structured manner while being beneficial for the business too.
- A summary of the entire business and its objectives explained in brief.
These are the essentials that need to be included within a poultry farming business plan. The business plan helps provide a thorough insight into the business envisioned by an entrepreneur and displays a solid and clear plan for the business rather than a vague idea. A business plan is thus a vital document, which is needed even to secure funding, and must be prepared meticulously. This task thus requires expert guidance which can be sought from the experienced team at deAsra, to help prepare a perfect business plan for the poultry farm business.