Overview of poultry business in Nigeria
There are major businesses to venture into and the poultry business is one of them. Crafting a poultry business plan would guide you on the right part. The poultry business is one of the best ideas for those who want to pursue a successful agri-business career.
The poultry business is the Business of poultry farming. In starting a business in poultry, some things have to be considered — like the feeding, the management, diseases, poultry breeding and others. These things have to be looked into and carefully handled to have a smooth business.
The poultry business sounds profitable but a lot of people fail due to the lack of proper knowledge and the incapacity to draft proper business ideas or strategies. The poultry business has become an indispensable part of the farming and agriculture system.
The term, “Poultry” covers a wide range of birds, from indigenous and commercial breeds of chickens to turkeys to guinea fowl, pigeons, ducks, and geese.
Uses of poultry products
In 2019 chickens accounted for some 93% of the world’s population followed by ducks (4%) and turkeys (2%).
The main products of poultry are meat and eggs and they are among the animal source food most widely eaten at global levels across greatly diverse cultures, traditions, and religions. What this means is the consumption of poultry meat and eggs has increased rapidly in past decades.
Poultry meat and eggs contribute to human nutrition by providing high-quality protein and low levels of fat.
Also, Poultry wastes are rich in nitrogen and other organic materials as they can be used as fuel production, fertilizer and feedstuff ingredients.
Also, Poultry feathers are authorised for making pillows, fancy articles and curios, boas, costume accessories, masks, earrings and flowers, paper, plastics, or even diapers.
Requirements needed to start poultry business
It is not a new saying that the Poultry farming business is a very lucrative agri-business, but there are requirements to start a poultry business These requirements include:
There is no other meaning to this than money and wealth. You want to start a poultry business but what are your means to acquire the money you need to start the business. First of all, the poultry business is capital intensive and one need to concentrate in order not to have a great loss. You need money to start a poultry business and at that, you can start either depending on the size of the farm or the Poultry you want to keep.
This should be considered in the poultry business. There should be space for the poultry you need and intend to keep. It is advised that the farm should be located close to a water drinking source, be within the radius of a market, and it should be where there is proper ventilation. You have to have a specific area for you to start your poultry business.
To start a poultry business, you should consider having people work for you. The poultry business is not one in which only an individual bear the work. There is a need to employ more workers who will tend to the poultry farm, attend to the types of poultry you keep, and also help to sell the poultry products. There are of work to do in the Poultry business and with that, there is a need for more workforce.
The use of poor storage facilities will cause deterioration of feed quality. This, in turn, will result in poor growth, malnutrition, health problems and possibly high mortality of the animals. Proper poultry feed storage is essential to ensuring top-quality for the Poultry feed which helps to protect them from the pest and critters.
Poultry transport is one of the most critical of the business. This is a great requirement as there would be a need to move the poultry either the animals themselves to get treatment or the Poultry products when you want to deliver to people who want to buy. There should be a specific vehicle for this purpose that will be properly ventilated.
6. Suppliers and Retailers:
To start this business, one has to bear in mind who he wants to work with. You should have people who will supply you with the animals or the food being fed to the animal and there should also be a salesman who helps to sell the Poultry products to consumers.
Is the poultry business profitable?
Everything involved within the poultry business is profitable as even poultry manure can make money for you. The amount one makes from the business depends on how much effort you put in it and how profitable you want it to be. To go into the business one has to be fully prepared to avoid any unforeseen situation. To make it more profitable, one has to ask for experienced labour, ensure proper and healthy housing for the birds, have an effective marketing strategy and optimise your poultry feed.
How much does it cost to start a poultry business?
It is also important to consider how much it costs to start a business. While it’d require a big amount of capital to start especially for those looking to travel large scale. However, it is difficult to fix an amount on how much one would need to start a poultry business. This is because there are many factors one needs to consider as they play vital roles.
The factors include deciding the Poultry breed you want to rear, the land, setting up the Poultry, farming equipment and the medication and feeding.
Putting this into consideration will determine the cost of starting a poultry business. However, all things being equal, you can start a poultry business with a startup capital of Two Million Naira if you will be getting a land space but if you already have your land space then you can start with Five hundred thousand naira without including Labour and some major machineries.
Types of poultry business
There are various types of poultry businesses one can decide to pick from and choose the one that is suitable for him or her. The types of poultry business include chicken, turkey, ducks, geese, guinea fowl and pigeons.
How To Start a poultry business In Nigeria
Starting a Poultry Business in Nigeria has been broken down into these easy steps:
1. Choose the poultry you want to invest in:
To start something, you have to create a mental picture of where it is going. There are various types of poultry to invest in. You have to decide the one you are interested in. Decide on the one you want to put a full concentration on. Is it chicken or turkey or guinea fowl, choose the one that works best for you.
2. Drafting a business plan:
A business plan is a formal written document containing the business goals, the methods for obtaining these goals and the time frame for the achievement of the goals, the nature and the background the information of the business and the strategy it intends to implement. Drafting out a business plan will help provide direction to the business.
3. Register your business with CAC:
CAC is the corporate affairs commission. It is a body charged with the responsibility to regulate the formation and management of companies in Nigeria. Registering your business will give you an upper hand against others and it will allow your business to be well known in Nigeria.
4. Set Up Your Poultry Cage:
Poultry cage is the housing system used for poultry. You have to set up your cage to house the poultry you have chosen to invest in. It is an intensive poultry house system in which poultry are kept in compartment units.
5. Plan For Logistics and Transportation:
This is one Great Factor to put into consideration. You have to plan, implement, and control the effective storage of the poultry. Also, you have to plan how you transport the poultry or poultry products for sales or others.
6. Market Your Product:
How shall one sell and market your products? Which marketing strategy do you intend to use? Is it advertising, publicity, or do you want to make use of the retailers? You also have to plan how to market your products to drive sales and to give you more profits.
How to write a poultry business plan
A basic thing you need to learn is how to draft a business plan. This gives you an in-depth understanding and background of your business goals. In drafting a business plan the following should appear:
1. Executive Summary:
It is a brief document or section of a document produced for business purposes. It contains a brief statement of the problem or proposal covered in the major document(s), background information, concise analysis and main conclusions. It is intended as an aid to decision-making by managers and has been described because of the most vital part of a business plan.
2. Company Description :
A company description provides a summary of key aspects of your business, like what you are doing and what makes your business unique. Anyone reading your business description should have no problem understanding the scope of your business. Lenders and investors should see how your business features a place within the market, also as its benefits to future customers. You have to answer the 5 W’s and H, Who, what, why, where, when and how.
Many investors and lenders feel the standard and knowledge of the management team is one among the foremost important factors used to evaluate the potential of replacement business. But putting work into the Management Team section won’t only benefit people that may read your plan. It will also assist you to evaluate the talents, experiences, and resources your management team will need. Addressing your company’s needs during implementation will make a serious impact on your chances of success.
4. SWOT Analysis:
SWOT analysis may be a strategic planning and strategic management technique designed to help an individual or organization identify strengths, weaknesses, opportunities, and threats associated with the business competition or project planning.
This technique is meant to be used within the preliminary stages of decision-making processes and may be used as a tool for evaluation of the strategic position of organizations
5. Market Analysis:
A key part of any business plan is marketing research. This section must demonstrate both your expertise in your particular market and therefore the attractiveness of the market from a financial standpoint.
Marketing research may be a quantitative and qualitative assessment of a market. It looks into the dimensions of the market both in volume and in value, the varied customer segments and buying patterns, the competition, and therefore the economic environment in terms of barriers to entry and regulation.
6. Financial Analysis:
Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to work out their performance and suitability. Typically, financial analysis is employed to research whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment.
Financial analysis is used to evaluate economic trends, set financial policy, build long-term plans for business activity, and identify projects or companies for investment.
7. Marketing Strategy:
A marketing strategy refers to a business’s overall game plan for reaching prospective consumers and turning them into customers of their products or services. A marketing strategy contains the company’s value proposition, key brand messaging, data on track customers, demographics, and other high-level elements. A thorough marketing strategy covers “the four Ps” of marketing—product, price, place, and promotion.
8. Competitive Analysis:
It is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats. Profiling combines all of the relevant sources of competitor analysis into one framework within the support of efficient and effective strategy formulation, implementation, monitoring and adjustment.
The appendix is employed to supply supporting documentation for key components in your business plan, like financial statements or marketing research.
The appendix is additionally an excellent place to place the other tables or charts you didn’t want to place within the main body of the business plan. Depending on the intended audience of your business plan, you’ll also want to incorporate additional information like property documentation, credit history, resumes, etc.