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Poultry Farm Business Plan – How To Start

Posted on
Mar 05, 2023
Poultry farm business plan

The poultry farm business is a popular and profitable one. The Indian poultry sector has grown significantly in the last few years, with the demand for chicken meat and eggs increasing exponentially.

If you are thinking of starting a poultry farm business, there are a few things you need to keep in mind. In this article, we will discuss some important tips on how to start a successful poultry farm business plan.

What is a poultry farming business?

Poultry farming raises domesticated birds such as chickens, ducks, turkeys, and geese for meat or egg production. Commercial poultry farming produces chicken, turkey, duck, goose, eggs, and meat.

There are two types of poultry farm businesses – layer farms and broiler farms. Layer farms focus on chicken rearing for egg production, while broiler farms focus on chicken rearing for meat production.

Why start a poultry farm business?

As of 2022, the Indian poultry market was estimated to be worth Rs 184 billion. This is expected to grow at a compound annual growth rate (CAGR) of 6% to reach Rs 235 billion by 2025. The total number of people employed in the poultry industry is estimated to be around 2.5 million.

The industry’s growth makes it an attractive option for not only those looking to start a career in the poultry farm business but also for those who would like to either invest in or provide credit to the industry. However, before starting a poultry farm business, it is crucial to understand the benefits and risks involved.

Some of the benefits of starting a poultry farm business are as follows:

  • The poultry farming business requires less investment as compared to other livestock businesses.
  • The poultry farm business can be started on a small or large scale.
  • Poultry products have a high demand in the market.
  • The poultry farming business involves less risk vis-a-vis other livestock businesses.

However, there are also some risks involved in poultry farming which are as follows:

  • The poultry farm business is vulnerable to various disease outbreaks, leading to significant losses.
  • The cost of feed and other inputs can fluctuate significantly, affecting the business’s profitability.
  • The poultry farming business is a capital-intensive business, and hence, it requires substantial investment.

Funding required in India for poultry farming business 

The cost of setting up a poultry farm business in India depends on various factors, such as the type and size of the farm, location, equipment, and number of birds. The investment can be around Rs 100,000 for small-scale farms; however, at least Rs 1000,000 may be required for large-scale farms.

You can finance your poultry farm business through various sources:

  • Personal savings or funding through your family and friends can be the best source of funding for your poultry farm business, as such funding does not put any financial burden on you.
  • Seek investment or loan from government bodies, cooperative societies, cooperative and commercial banks or institutions.

You can set up a successful poultry farm business in India by bringing investment through investors or credit from lenders. However, you need a poultry farm business plan for such an investment.

Preparing a poultry farm business plan

Before starting your poultry farming business, you need to arrange for investment. However, if you cannot invest the entire fund required to set up a chicken farm business, then you can seek investments or loans from either government-sponsored bodies, rural self-help groups, cooperative societies, or banks. However, to do so, you need to have a poultry farm business plan that can realistically project the business’s earnings and return on investment (RoI) over a period.

Create a presentation that will provide a concise projection of the following:

  1. The current poultry farm business scenario in your chosen market.
  2. The projected growth of the business over a given period.
  3. How much capital investment for land, building, machinery, and livestock, would you require?
  4. What will be the initial investment, and how much working capital do you need for day-to-day expenditures?
  5. How much money will you invest, and how much credit or investment would be required?
  6. What will be the collateral against the loan?
  7. What will be the RoI that your business will fetch over a given period?

Loan for poultry farming business

Generally, different government initiatives provide initial seed money as loans for livestock businesses. The Mudra Scheme of the Government of India is a good option for those seeking small credit. Rural cooperative bodies, cooperative banks, and private and public banks can also provide you with a loan if your business plan is promising.

For any loan, you need to pay interest on the amount you receive from the lender, and you need to also provide them with specific collateral, for example, the land of your poultry farm, in return for the loan. FlexiLoan helps you acquire business loans without any hassle at easy terms.

However, the credit approval is subject to the content of your poultry farm business plan. Therefore, you should pay utmost attention while drafting the plan.

Documents required for loan approval:

Generally, you would need to submit the following documents for your loan approval:

  • Business plan
  • Land ownership documents
  • Last three years’ Income Tax Returns (ITRs)
  • KYC documents
  • Equipment quotation
  • Insurance policy
  • NOC from concerned authorities


Poultry farming is a lucrative business and can be a great source of income. However, it is essential to have a well-thought-out business plan and adequate funding before starting this business. Various government schemes in India provide financial assistance to farmers for setting up poultry farms. You can check with your local agriculture department to see if you are eligible for any such scheme. You can set up a successful poultry farm business in India with proper planning and funding.

If you are looking for an MSME loan, FlexiLoans is the perfect solution. You can apply for a loan easily from anywhere in India just by answering some questions. Contact FlexiLoans with your poultry farm business plan to start today!

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