This is a sample business plan for a poultry farm based in Nigeria. The sample business name used is Nutrichic Farms.
The business operates a poultry farm that breeds broiler and layer chickens, and is located in Nasarawa state.
The business plan outline used is a simple business plan that follows a standard business summary template used by most business schools and is usable for applying for loans, grants, and equity funding.
You can use this business plan as a guide to develop a business plan for your poultry business.
Introduction
Nutrichic Farms is a poultry farm located in Nasarawa state, Nigeria. We rear broiler and layer chickens for eggs and meat production and sales.
Through our farm, we produce healthy chickens and eggs, which are distributed at local markets in Nasarawa and other neighboring states.
Business Analysis
Nutrichic Farms operates a lean model poultry farm that houses a chicken shelter and a feed production chamber.
We produce our chicken feeds in-house to reduce cost of breeding and to ensure healthy nutrition for our chickens.
This ensures that our layer chickens lay more eggs, and our broilers are ready for sale as quickly as possible.
To ensure a fast and efficient sales process for our eggs and chickens, we have a distributor network that consists of 20 egg distributors and 15 chicken distributors within Nasarawa.
This makes our sales process faster and remittance of payments more accountable.
We are looking to make our production and distribution even more efficient by procuring more feed production machines and distribution vans for transporting our products to the market.
Product Pricing
Our fresh eggs are sold at a wholesale price of 720 Naira per crate. Our mature broilers are sold at a wholesale price of 1,500 Naira, while our old layers are sold at a wholesale price of 1,300 Naira.
On the average, we sell 65 crates of eggs, and 80 chickens per week.
Business Model & Profitability
Business Model
Our business model focuses on producing healthy chickens and eggs, reducing production costs, utilizing competitive price points, and being fast to market by leveraging our distributor network.
Expected annual customers
Since we already operate a direct B2B sales model using our distributor network, our customer base is already set.
We have 20 egg distributors and 15 chicken distributors already. Once we increase our production capacity, we’ll be able to triple this number and grow our sales.
Estimated Annual Revenue
Currently, we are able to distribute 65 crates of eggs and 80 chickens per week, which brings us an annual revenue of 2.4 million Naira and 5.8 million Naira.
We estimate that our total annual revenue of 8.2 million can be tripled once we scale our production and make our distribution more efficient.
Production & Distribution Cost
Our production costs include procuring day-old chickens for 100 Naira each, raw materials for feed production, vaccination, and fuel to power the production plant, pump water, and power the chicken shelter.
Our distribution costs include weekly transportation, logistics and other miscellaneous expenses.
Profit Margin
Currently, our profit margin stands at 65% but we are looking to scale that up to 80% once we begin the next phase of our expansion plans.
The Team
Nutrichic Farms was launched by Solomon, who is currently the CEO of the business.
Solomon has a background in agric economics and farming, and has been managing his family farm since the past 20 years.
The current business has remained a family holding, with staff consisting mainly of family members.
Other team members include Mr. Hassan, the feed plant technician; Mr. Kehinde, the truck driver and distribution head, and Ms. Victoria, our quality control and business development manager.
Each person on this team brings a unique skill set that is required to drive the business forward and fulfill the needs of our customers.
Business Journey
Nutrichic Farms was launched in 2015 by Solomon due to his passion for poultry and farming.
The business was launched with a capital of 300,000 Naira, which purchased 50 birds, built a makeshift chicken shelter, and purchased some chicken feeds.
Over the past 5 years, Nutrichic Farms has grown so much that we have been able to build a larger and more standard chicken shelter, drilled a borehole, and started our own feed production.
Since then, we have sold over 30,000 chickens and 10,000 crates of eggs, making sales of over 10 million Naira.
In that time, we have also implemented our strategy for business development and grown our distributor network. We are hoping to grow this network further in the next phase of our business.
Market Analysis
Market Size/Target Audience
According to Sahelcp, the poultry market in Nigeria is worth 80 billion Naira.
We estimate that the poultry market in Nasarawa and its environs is worth 0.5% of the total poultry market in Nigeria.
Hence, our market size is estimated to be worth 400 million Naira.
With the population in Nasarawa growing impressively year-on-year, we estimate that our target customers comprise over 4,000 retailers of chickens and eggs, and over 1.5 million consumers of chicken and egg.
Marketing Plan
Our marketing plan involves incentivizing and leveraging our distributor network.
We want to help these distributors of chicken and egg get the right products promptly at the right prices and to make more profit.
We plan to grow our distributor network to at least 2,000 distributors in the next 2 years.
This would help us boost sales and collect better feedback on the needs of retailers and final consumers.
SWOT Analysis
Strengths: Our Strengths lie in our strategic distributor network, strong business efficiency, and growing brand.
Weaknesses: Our identified weak areas are limited markets due to physical nature of business, and Poor transport infrastructure which relies too much on external logistics partners.
Opportunity: Our identified opportunities include the growing population and demand for chicken and eggs, strong local brand identity, and the room for growth in our production and distribution.
Threats: We see threats to our business in different areas such as individual sellers in the market competing on price, logistics partners failing on deliveries, and wholesalers buying from outside the state.
Business Needs
Nutrichic Farms is in need of funds to purchase more machinery for our feed plant, purchase trucks for our distribution, and marketing to grow our distributor network.
We plan to grow our distributor network to at least 2,000 distributors in order to capture more market share and consolidate our brand positioning.
If these requirements are met, it would help us meet our business & financial goals.
Future Plans
Over the next two years, we plan to grow our distributor network from less than 50 to 2,000.
This would help us capture a wider segment of the market, triple our sales, and enjoy a strong market advantage.
Cash Flow Projection
To create a cash flow Projection for your poultry farm business plan, click here to use our Simple Financial Template.