Poultry Business Plan- Why You must have one

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Introduction

Poultry farming is an incredible business, and definitely underrated compared to where the world’s attention is directed right now.

Why it’s underrated?

For one, not a lot of people want to get themselves involved with it in most Tier 1 cities. Two, it’s a vast and incredibly diverse market – we not only use the meat but also the produce from these animals, in a variety of ways – the eggs, the waste, even the skins. We’ll see how all of this is put to use later in this article, but you get the idea.

In this article, we’re going to take find out if the poultry farming business is as good as we say it is, how to draft an actionable business model for poultry businesses in India, and what steps you can take to get started with it. Let’s get started.

How good or bad is the Poultry industry in India?

In India, the poultry industry has seen a considerable transformation in terms of both structure and operation over the past two decades – evolving from a simple backyard activity to a major business with a large number of participants.

You might be wondering what motivates the Indian poultry farming market. It’s a combination of rising incomes and shifting food patterns, a largely untapped market, growth in the food services market, and growth in the bakery foods market.

“It’s no doubt that the Indian poultry market was worth over 1.9 billion INR

Which State Produces The Most Eggs?

The top egg producers in the country are Andhra Pradesh, Tamil Nadu, Telangana, West Bengal, and Haryana, according to the department of animal husbandry, accounting for almost 65 percent of total egg production (Source: The Times of India). The Indian Council of Medical Research (ICMR) suggests that each capita consumes 180 eggs per year. However, actual consumption is significantly lower.

Which State Consumes The Most Eggs?

Domestic egg consumption has increased by 3 million since the Covid outbreak, according to the National Egg Coordination Egg Committee (NECC), after doctors, medical personnel, and various health institutes advised the people to eat more eggs to boost immunity levels and battle the virus. Before Covid-19, egg consumption peaked as high as 170 million per day, but it increased to over 2 million per day, with 7.5 million eggs being consumed in Hyderabad alone.

As a result, the state topped the countries per capita records. According to the NECC, while the National Institute of Nutrition advises 181 eggs per capita per year, Telangana is the only state to meet this goal, with Tamil Nadu coming in second with roughly 140 eggs per capita per year. [(Source: The New Indian Express)]

The Business Plan for your Poultry Farm

Executive Summary

The purpose of your Executive Summary is to draw the reader in fast. Tell them about the type of poultry farm you have and how it is doing. For example, are you a startup, do you have a poultry farm business that you want to expand, or do you have many poultry farm businesses?

After that, give an outline of each of your plan’s future components. Give a quick overview of the poultry farming sector, for example. Talk about the type of poultry farm you have. Describe your direct competitors in detail. Give a brief description of your target market. Give an overview of your marketing strategy. Determine who the most important members of your team are.

Company Analysis

In your company analysis, you will describe the type of poultry farm you operate, such as Breeder Farms, Broiler Farms, and Pullet Farms.

In addition to explaining the type of poultry farm business you will run, the Company Analysis section of your business plan should provide background information on the company.

Include responses to questions like:

  • When and why did you start the company?
  • What achievements have you made thus far? Milestones could include the number of chickens and/or turkeys produced, the number of production contracts, and so on.
  • Your legal structure. Are you an S-Corp? What is a limited liability company? A sole proprietorship? Describe your legal structure here.

Industry Analysis

You must provide an overview of the poultry farm industry in your industry analysis. While this may appear to be superfluous, it serves several purposes. Begin by researching the poultry farm industry to learn more. It aids in your understanding of the market in which you operate. Then market research can help you improve your strategy, especially if it identifies market trends.

The third reason for conducting market research is to demonstrate to readers that you are an expert in your field. You accomplish this by conducting the research and incorporating it into your plan. In the industry analysis section of your poultry farm business plan, you should answer the following questions:

  • What is the size of the poultry farm industry?
  • Is the market falling or rising?
  • Who are the market’s main competitors?
  • Who are the market’s main suppliers?
  • What are the current industry trends?
  • What are the industry’s growth projections for the next 5–10 years?

Apart from this, you also need to ask what the size of the relevant market is – that is, how large is your poultry farm’s potential market? You can extrapolate such a figure by first determining the size of the market in your country and then applying that figure to your target market.

Customer Analysis

The customer analysis section of your poultry farm business plan must include information about the customers you currently serve and/or expect to serve. Processors, grocery stores, and restaurants are examples of customer segments.

As you might expect, the customer segment(s) you select will have a significant impact on the type of poultry farm business you run. Processors, for example, would undoubtedly respond differently to marketing promotions than restaurants.

Psychographic profiles explain your target customers’ wants and needs. The better you understand and define these needs, the better you will be able to attract and retain customers.

Competitive Analysis

The competitive analysis should identify your company’s indirect and direct competitors, with a focus on the latter.

  • Other poultry farm businesses would be your direct competitors.
  • Indirect competitors would be alternatives to the direct competitors that customers can purchase from. Producers of other meat, such as beef, pork, or fish, as well as meat alternatives, are included. You should also mention such a competition.

You should describe the other poultry farms with which you compete in terms of direct competition. Your direct competitors will most likely be poultry farms located very close to your location.

The final section of your competitive analysis should include a list of your areas of competitive advantage. As an example:

  • Will you employ superior manufacturing techniques?
  • Will you offer services that your competitors do not?
  • Will you improve your customer service?
  • Will you lower your prices?

Consider how you will outperform your competitors and include them in this section of your plan.

Marketing Plan

A marketing strategy typically incorporates the four Ps: product, price, location, and promotion. Your marketing plan for a poultry farm business plan should include the following:

Product: You should reiterate the sort of poultry farm company you documented in your Company Analysis in the product area. Then, go into depth about the precise things you’ll be selling.

Price: Make a list of the prices you’ll be offering and how they compare to those of your competitors. The product and price sub-sections of your marketing plan are essentially where you present the items and services you offer, as well as their prices.

Place: The site of your poultry farm business is referred to as place. Make a note of where you’re going and how it’ll affect your success.

Promotion: The section on promotions is the last portion of your poultry farm marketing plan. You’ll write about how you’ll get customers to your store in this section (s). You might want to think about the following strategies for promotion:

  • Advertising in trade journals and publications is a great way to get your name out there.
  • Contacting agricultural extension offices in the area
  • Flyers
  • Marketing on social media
  • Local radio advertising

Operations Plan

Although the goals in the previous sections of your company plan were described, your operations plan explains how you will achieve them. Your operations strategy should be divided into two portions, as shown below.

All of the duties required in running a poultry farm, including animal care and feeding, flock supervision, animal transportation, feed sourcing, and so on, are included in daily short-term processes.

Long-term objectives are the milestones you want to reach. These could be the dates when you plan to sign your 20th production contract or hit in revenue. It could also be the time when you want to relocate your poultry farm.

Management Team

A strong management team is necessary to demonstrate your poultry farm’s potential to thrive. Highlight the backgrounds of your key individuals, stressing the talents and experiences that demonstrate their aptitude to create a business.

You and/or your team members should ideally have prior experience managing poultry farms. If this is the case, emphasize your knowledge and experience. However, you should also mention any experience that you believe will aid in the success of your company.

Financial Plan

Your 5-year financial statement should be broken out monthly or quarterly for the first year and then annually in your financial plan. Your income statement, balance sheet, and cash flow statements are all part of your financial statements.

Profit and Loss Statement (P&L): An income statement is sometimes known as a profit and loss statement. It displays your revenues before subtracting your expenses to determine whether you made a profit.

Balance Sheets: A balance sheet is a document that lists all of your assets and liabilities. While balance sheets can include any information, strive to condense them to the main items you need to know about.

Statement of Cash Flows: Your cash flow statement can help you figure out how much money you’ll need to start or grow your firm, as well as ensure that you never run out. Most entrepreneurs and business owners are unaware that it is possible to make a profit while simultaneously running out of cash and going bankrupt.

Include several of the primary costs associated with starting or growing a poultry farm business in your Income Statement and Balance Sheets:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment and supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Poultry Farm Licenses & Registration Requirements

It is not necessary to have a government-issued license to operate a poultry farm. If you’re doing it on a small scale, you don’t need a license, but doing it on a huge scale requires official approval, which may be obtained quickly.

The following are the permits that the owner of a poultry farm must obtain before beginning business in India:

  • No Objection Certificate (NOC) from the local village Panchayat.
  • No Objection Certificate (NOC) from the Pollution Board.
  • Permission for the use of electricity. One will be required to use an electrical transformer depending on the size of the poultry farm.
  • License from the Groundwater Department

How much profit does a poultry farm make?

In India, poultry farming is a profitable business. The average time to achieve the Breakeven Point is only 6 months. Profitability is mostly determined by the size of the company. However, even a small-scale poultry farm may provide a respectable profit.

In addition to selling eggs and meat, one may also sell feathers and by-products like manure to increase income. If you are considering starting your own poultry farm, it is always a good idea to visit a working farm first to gain a practical understanding of how one operates.

Poultry Companies in India

The country is home to some of the biggest poultry companies in the world. If we had to put some of the biggest names on a list, it would be as follows:

  • SUGUNA FOODS PRIVATE LIMITED.
  • ALLANASONS PRIVATE LIMITED.
  • VENKATESHWARA HATCHERIES PRIVATE LIMITED. …
  • FRIGORIFICO ALLANA PRIVATE LIMITED
  • FAIR EXPORTS (INDIA) PRIVATE LIMITED
  • VENKY’S (INDIA) LIMITED
  • SNEHA FARMS PRIVATE LIMITED
  • HMA AGRO INDUSTRIES LIMITED

Poultry States in India

Sr No.StateProductionShare(%)
1Maharashtra632.3215.57
2Haryana478.6311.78
3West Bengal475.4211.7
4Tamil Nadu455.5111.21
5Andhra Pradesh443.3510.92
6Uttar Pradesh359.448.85
7Telangana336.338.28
8Kerala178.034.38
9Karnataka139.183.43
10Punjab125.033.08

Poultry Farming Training & Resources

If all of this sounds exciting and appealing to you, maybe(just maybe), starting a poultry farm business would be the right thing to do.

But!

Before you go away applying for your poultry licenses and your NOCs, maybe spend some quality time researching the industry in depth.

Believe it or not, there is a lot of study material for poultry farming too, and it would do you a lot of good to go through some of them, and then make an informed decision.

Books

  • Production manual – For emerging commercial egg producers 2021 (English, Français)
  • Quail farming in tropical regions 2016 (English, Français)
  • Veterinary cold chain manual- Ensuring effective vaccines 2015
  • Household chicken production 2013
  • Good practices for family poultry production: Hay box brooder- A milestone to increase rural households poultry production 2012 (English)

Courses

Consultants

Dr.Manoj Shukla

Conclusion

It’s a good idea to put together a business strategy for your poultry farm. But that’s only if you follow the template above, you will be a true expert by the time you are finished. You’ll gain a thorough understanding of the poultry farming sector, as well as your competitors and customers. You’ll have created a marketing strategy and will have a thorough understanding of what it takes to start and grow a profitable poultry farm.

This post is also available in: English

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