Poultry Farm Business Plan
Poultry farming is an activity that involves nurturing several categories of domestic birds for producing food such as eggs and meat. Poultry farming in India is the fastest developing area under agriculture and farming business. There are 3 million farmers practising poultry farming. What initially used to be limited to backyard farming has presently transformed and expanded into a techno-commercial industry.
Cost of Starting a Poultry Farm Business
The cost one is expected to incur when initiating a poultry business mainly depends on its scale. In India, the approximate cost involved is as follows –
- Small scale poultry farm – INR 50,000 to 1,50,000
- Medium-scale poultry farm – INR 1,50,000 to 3,50,000
- Large scale poultry farm – INR 7,00,000 to 10,00,000
For financial aid, one can apply for a business loan with a bank. Even though the option of borrowing the funds from friends or relatives is available or apply for Government schemes, a loan from the bank would provide tax rebates on the loan amount, therefore making it the most suitable option.
Step-by-Step procedure to Start a Poultry Farm
Step 1: Creating a business plan
A business plan is a roadmap that includes the specifics of how to achieve business goals. The business plan for poultry farming would ideally possess the following –
1. Finding a suitable location to start the poultry farm.
2. List of required equipment.
3. Deciding the variety of birds on the farm.
4. Details of processes such as egg production, broiler breeding, etc.
5. Specifics relating to various resources such as human resources, financial resources, etc.
6. Plans for marketing and advertising strategies.
7. Information on legal clearances required, such as licenses and permissions.
Step 2: Selection of Location and Procuring Required Equipment
One of the most crucial steps is to find the appropriate land for the business. This step is the costliest while setting up the business. The size of the land may vary depending on the type and scale of the business. Primarily, there are four types of poultry farms, they are –
1. Free Range Poultry Farm – Approximately 12,000 to 36,000 sq. ft. is required as birds will be allowed to move around freely.
2. Semi Range Poultry Farm – Approximately 8000 sq. ft. is required for this farm type.
3. Battery Cage Poultry Farm – Approximately 6,000 sq. ft. is required for the birds and infrastructure. In this type of farm, the birds will not be let loose to move around.
4. Completely Wild Poultry Farm – This type of farm is similar to the birds’ natural habitat with plenty of trees. Approximately 44,000 sq. ft. will be required for the same.
Other factors to consider when selecting the location would be to find an area away from the city, preferably safe, calm, and pollution-free, with easily accessible amenities such as fresh water and a market to buy commodities. However, it is always advisable to start the poultry farm on one’s land when commercialising poultry production.
Additionally, understanding what equipment is required for the business’s functioning and procuring them is essential at the preliminary stage. But first, it is necessary to decide which system to follow. According to India’s conditions, 3 systems are suitable: intensive system, semi-intensive system, and extensive system.
Step 3: Deciding the Variation of Bird used in Poultry Farming
India is home to one of the biggest markets for poultry around the world. Despite the presence of a variety of birds such as chicken, geese, turkey, ducks, guinea fowl, quail, and many more, the poultry farms majorly raise chickens. There exist over 600 variations of chicken across the world, and 92 are grown in India to produce meat and eggs. The 3 most common categories of chicken in India are the following -
- Broiler chickens – They possess a high growth rate and can reach their fully grown stage in 8 weeks. Broiler chickens also have a high quantity of meat.
- Layer chickens –These birds are a unique breed under hens. They begin laying from 18 to 19 weeks and can continue to do so until 72 to 78 weeks. Layer chickens can produce above 250 eggs per year, and they consume approximately 2.25 kg of feed.
- Rooster chickens –These birds, also known as a cock, is the male gallinaceous bird. When they are young, they are called a cockerel, and they are called a rooster when they become an adult. They take time to grow but can guard the hens laying eggs due to their territorial instincts. Roosters are capable of quickly adapting to changing environments, and therefore they can be conveniently transported.
Step 4: Taking measures for the care and management of Poultry Farm
It is imperative to keep precautionary measures to ensure the birds’ health and safety, which will help in their proper nurturing and growth. There are some threats when running a poultry farm, but the main one remains poultry diseases. Providing clean water, nutritious food, and regular vaccinations to the poultry is essential. Taking adequate measures and having consistent regulation will ensure one does not face huge losses due to the diseases and other potential risks.
Step 5: Getting the required Licenses/Permissions for starting a Poultry Farm
The legal aspects concerning a poultry farm in India were initially not easy to get around. However, considering the increasing demand for poultry products, India’s Government is taking steps to support and promote the poultry farm business. Wherefore, with the right legal assistance, one can start and maintain a poultry farm in India without much maintenance after getting the required permissions and licenses.
The licenses required to be procured by the owner of the poultry farm before starting the business in India are as follows -
- 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.
Step 6: Conducting effective marketing and advertising
After deciding the name and a unique logo for the business, marketing poultry products in India is easy because of high demand. One can sell the products in the nearest markets and further even transport them to nearby cities, depending on the production scale.
Profit from Poultry Farm Business
Poultry Farming is a profitable business in India. The average time period to reach the Breakeven Point is estimated to be just 6 months. The size of the business plays a key role in earning profit. However, it is observed that a decent profit is made even from a small scale poultry farm. Additionally, beyond limiting sale to just eggs and meat, one may choose to sell feathers and by-products such as manure to gain added profits.
It is always advisable that if you are planning to start your own poultry farm business, before you begin, visit a running farm to attain a practical awareness about the functioning of a poultry farm.
What are the Benefits of Poultry Farming?
- The consumers are getting highly conscious of healthy eating so this has helped the poultry farming a lot. Consumers prefer poultry products as they are high in nutrition. Moreover, no religious taboos are revolving around poultry products.
- Poultry farming at a commercial level is a profitable business and a field with ample opportunities for budding Entrepreneurs. Banks across the country provide loans to aid business initiation.
- In India, a poultry farming business can be initiated with smaller capital, unlike other businesses. Further, it can function with minimal utility availability such as water, electricity, and light. Therefore, there is scope for exponential expansion that can be easily executed in the future.
- It would increase job opportunities drastically, and there are institutes and training centers available from where one can learn professionally about poultry farming. Some being –
- Dr. B.V. Rao Institute of Poultry Management & Technology, Pune
- Central Avian Research Institute, Izatnagar
- Indira Gandhi National Open University, Delhi
- National School of Open Schooling, Delhi
Impact of Poultry Farm Business on the Indian Economy
In India, the poultry industry has been growing at a high rate and is still expected to hike over the next decade. Presently, India is in the seventeenth position globally in the world population production index. Reports state that India’s poultry industry contributes approximately 16,799,613,124 Indian rupees towards the gross national product, and it is noticed that it is on a steady rise by the year. Furthermore, India stands as the 5th biggest eggs producer and 9th biggest poultry meat producer.
According to the market research conducted on the poultry business in India, reports state that the rate at which eggs are consumed has risen at a much-accelerated speed, in comparison to the poultry meat consumption. Additionally, the purchasing power capacity among consumers is continuously growing, and therefore, the rate of consumption is expected to increase thrice as much by the beginning of 2021.
It can be safely stated that the poultry business in India has an enormous positive impact on the economy and is expected to improve with time.
- It is not just about thinking about how to start a poultry farm in India or reading about a poultry farm business in general, you need to be precise on planning.
- Before you invest or take a loan or just google basic tips on how to start a poultry farm, you should weigh in the pros and cons for the same.
- The poultry farm business is profitable only if all the above steps are followed and mandatory requirements are met.
- Let us also have a look at some of the frequently asked questions on how to start poultry farming in India?
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FAQs on Poultry Farming Business
Q. What is poultry farming and how to start a Successful Poultry Farming Business in India?
Ans- Raising birds for selling their eggs and meat for profit is known as poultry farming. These are some of the basic things required for starting a poultry farm:
- Location of your business space or land where you plan to build your farm.
- Equipment details that'll be used on your farm.
- Type of bird you'll be using for your business like- chicken, turkey, quail, emu, duck, etc.
- Egg-production process details.
- Broiler breeding process details.
- Human Resources information.
- Cost analysis and other financial details.
- Funding details
- Official permits and government based licenses
- Advertisement methods and marketing strategies
Q. How much does it cost to start a poultry farm in India?
Ans- The general amount of funds required in starting a poultry business in India is approximately around 50,000 to 2 Lakh rupees.
Q. Is poultry farm profitable in India?
Ans- The Poultry farm business is one of the highest growing and booming businesses in India. Given the current market scenario, it is for sure the most profitable agri-business.
Q. How can I start a poultry farm?
Ans- These are some of the prime rules for starting your own poultry farm in India:
- Finalise your Sector for the poultry farm business.
- Creating your farm brand logo
- Selecting Farm location
- Choosing the type of bird
- Manage financial funding
- Word of Mouth marketing for your farm
- Take your business online with a website
- Hire professional staff for farming
- Build a solid marketing plan to market your audience.
Q. Which poultry is best in India?
Ans- These are some of the top chicken breeds in India for egg and meat:
- Naked Neck
Q. How to choose your poultry sector in India?
Ans- These are the important steps to follow while choosing your poultry sector in India:
- Poultry feed production
- Hatchery or Chicken Breeding
- Meat and egg processing
- Layers breeding (egg production)
- Broilers breeding (meat production)
Q. How much labour force is needed to start a poultry farming business?
Ans- The labour force needed is measured depending on the poultry farm’s size and scale and the count of birds being nurtured during a particular period. For example, to manage every 500 birds, 2 to 3 people may be required.
Q. Is any software available to help in managing a poultry farm?
Ans- The NAVFarm poultry farm software aids in managing the whole farm. It provides complete control over the business and enables the management of every aspect concerning the business. It includes feeding, hatching, breeding, delivery of products, and all other related activities that can be managed at ease.