Poultry Farm Business Plan

What is a Poultry Farming Business?

Poultry farming is the rearing of birds for the sake of consumption. People use the meat and the eggs from the birds reared in such farms to cook and eat. Poultry includes chicken, duck, geese and, in most cases, turkey.

A poultry farm business refers to starting a poultry farm for commercial purposes. Chickens are the most popular poultry bird due to their meat and eggs. This has given rise to several small and large chicken poultry farms in India. Because it comes under agricultural activity, the government has initiated several schemes for the sector.

Most people start a poultry farm to sell the products and gain a profit from it. This, of course, means that the product will have to be of solid quality. This requires good quality food for the birds, plenty of water (for drinking and cleansing the poultry), a stable living environment, and expert care as the basics.

All the above aspects are neither easy nor cheap to arrange for, so a poultry farming business plan is essential before you start your journey.

Why Start a Poultry Farm Business?

As discussed earlier, the poultry business is gaining popularity and has displayed great potential to grow further in the following years.

Statistically speaking:

• The size of the Indian poultry market reached ₹1,905 billion in 2022.
• It is expected to grow to ₹3,477 billion by 2028.
• The sector is expected to record a CAGR of 10.18% over the next five years.
• The poultry industry employs an estimated 2.5 million people.
• Poultry requires less investment than other livestock ventures, and you can easily take a business loan from a reputable lender such as FlexiLoans.
• It carries less risk as compared to other livestock activities.
• Poultry products enjoy high demand in all financial classes in the country.

Considering these facts, starting a poultry farm business is generally highly lucrative. However, there are a few things to remember while starting such a business.

How To Start A Poultry Farm?

Do you want to know how you can start a poultry farming business? First and foremost, you will need to prepare a business plan. Preparing this will need a lot of research, calculation, and decision-making. But once you have your plan ready, making the smaller operational decisions will be much easier.

Also, based on this well-prepared plan, you can further apply online for poultry farm loans from lenders such as FlexiLoans, which provide easy funding online, or investments from other sources. Here's a brief guide on how to start a poultry farm for beginners.

Starting a successful business will require you to be ready in every way. A poultry farming business plan will be the first thing you must prepare and the most essential for your business.

Formulating this chicken farming business plan will need you to make many important decisions that will affect the success of your business. Your business plan must consist of the following:

• The type of poultry farm you want to start
• The type and breeds of birds you want to rear
• A suitable locality for the business
• List of required equipment
• Details of required processes
• Plans for obtaining resources as well as licences
• Financial/prospective data to present to possible investors/lenders

Type of Poultry Farms

The first of your many decisions will be choosing the kind of poultry farm you want to start. There are broadly two types of chicken farms:

• Layer farms: These farms raise chickens or other poultry for their eggs. These farms don't provide chicken meat and rear their birds solely to sell their eggs. Such a farm is a good option in a locality where you will find a lot of health establishments or stores selling eggs but not other meat.
• Broiler farms: These farms rear chickens for their meat. This kind of poultry farm will settle well in areas with more butcher shops and a higher density of restaurants. An offshoot of a broiler farm is a breeder farm. This farm breeds chicken and supplies it to broiler farms.
• Pullet farms: A less popular kind of poultry farm is a pullet farm. These farms produce chickens and send them to layer farms or breeder farms.

This is only a brief overview of the types of farms. Each has its pros and cons. Make sure to do further research to determine which type suits you best.

Types of Chicken/Poultry

A huge variety of birds, especially chicken, is in demand in the market that you can rear for a chicken business. You can categorise chicken into three main categories:

• Broiler chicken: It has a full growth period of about eight weeks and produces a good amount of meat to be sold.
• Layer chicken: These start laying eggs at 18 weeks and can continue until about 78 weeks. They produce about 250 eggs per year.
• Rooster chicken: Farms use rooster chickens to guard the chickens that lay eggs because of their natural protective instinct.

Even under these types, you can choose many local and international chicken breeds that have specific qualities and requirements. You must thoroughly research the breeds to choose which one to include in your chicken poultry farm.

Location

The location you select for starting your hen farmhouse will depend on a few different factors, such as:

• The scale of your poultry farming business
• The type of farm you want to set up
• Safety of the area
• Level of pollution
• How much of your finances can be used for land
• Ease of access to a market and other amenities.

Based on the area of land you buy, these are the types of farms you can set up:

1. Battery cage farm: This kind of farm needs around 6,000 sq. ft. of space. Of this, 4,000 sq. ft. is for the birds and another 2,000 sq. ft. for other construction.
2. Semi-range farm: The coops and the penn made for the birds in this kind of farm require about 8,000 sq. ft. of land.
3. Free-range farm: Anywhere between 12,000 sq. ft. to 36,000 sq. ft. of land is enough for the chicken to be left loose in this farm
4. Wild poultry farm: This system requires around 44,000 sq. ft. of land to allow the chicken to grow in a completely wild environment.

Some poultry farmers also start small poultry farms or home poultry farms.

Processes

The processes you will need to employ for your poultry farm will vary based on the type and scale of your business. They will also change based on the land your farm is on. The caretaking and habits required for a broiler farm won't be the same for a layer farm.

Outdoor processes will also be different from the processes used for indoor poultry. Again, it is best to consult an expert or a practicing poultry farmer.

Prospective data

To make it easier to apply for a loan from a top lender such as FlexiLoans or an investment scheme from a government-backed body, self-help group, cooperative society, or bank, it is important to present them with a statement. This statement should contain realistic data about details like:

1. The current scenario in your market of choice.
2. The projected growth of a poultry farm business in your market of choice.
3. The total amount of investment you will need for your poultry farm. A breakdown of the amount according to land, building, machinery, human resources, etc., would add an extra benefit.
4. The amount of working capital needed to take care of daily activities.
5. The funds you invest and the amount you require as credit or investment.
6. Details about your collateral (if applicable).

Calculate the RoI (Return on Investment) your chicken farm will produce over a specific period.

Things To Consider Before Starting A Poultry Farm Business

While owning a poultry farming company comes with many benefits, the industry has a few potential downsides you might want to consider.

• Outbreaks: History has witnessed several serious poultry and cattle disease outbreaks. Viruses like the swine flu and H1N1 have caused a lot of chaos and high losses for poultry farmers. To avoid such epidemics, ensuring the quality of poultry food and maintaining strong and responsible hygiene practices is essential.
• Costs: The expenses you incur on the rearing may vary from time to time as the supplies necessary for the upkeep fluctuate from time to time. This may affect the profitability of the business. The prices of the products also show changes based on market conditions. This will affect the profits too.
• Investment: Even though the poultry farming business requires less capital than other cattle activities, it is still capital-intensive. The initial capital required will be quite high.
• Trends: The market sees ever-changing trend cycles now and then. New trends like veganism or going dairy-free might show an effect on the profits of a poultry farm.

Nothing comes without its fair share of risks, and a poultry business's benefits are impressive. A great example of a successful poultry farm business that has grown to great heights is the Sneha Chicken franchise, known to have the best chicken in Hyderabad, India.

Licences (Documents) Required For A Poultry Farm Business

Starting a poultry farm company for products such as poultry, which people will directly consume, will need a few certificates to ensure that the farm is following appropriate practices and not putting anyone at a health risk. For this purpose, your poultry farm will need these licences:

• A NOC (no objection certificate) from the relevant governing body
• A NOC from the pollution board
• Permission for electrical use
• licence from the groundwater department
• Business registration
• MSME Registration: Non-mandatory but will help with benefits like a Mudra loan for poultry farms.
• Trademark registration: Also non-mandatory but beneficial for your brand.

Funds Required For A Poultry Business

The funds you would require to start poultry farming in India depend on many factors. Some of the affecting factors are:

• Size of the farm
• Type of the farm
• The scale you want to start the business at
• Location of the chicken farm business
• Equipment required
• The amount and type of poultry you plan to rear

However, here is a basic breakdown of the funds you will need for your poultry business based on the scale:

1. Small: An estimated amount of ₹50,000 to ₹1,50,000 is enough
2. Medium: Needs around ₹1,50,000 to ₹3,50,000
3. Large: This farm needs ₹7,00,000 to ₹10,00,000. This amount is far higher as space and equipment requirements change vastly.

You may invest this amount completely from your fund or use a loan for a partial amount. Most local poultry farmers choose to start their poultry farming business as a small poultry farm or through home poultry farming in more rural areas.

Funding Options

As convenient as it may seem to borrow money from friends and family, doing so could cause unnecessary strain on your relationships. Besides, there are several sources through which you can gather the funds necessary for your chicken farm business.

• The Government of India provides great support for agricultural businesses. It has made several loans and schemes available for entrepreneurs in the agriculture sector. The Mudra loan for poultry farms under the Pradhan Mantri Mudra Yojana is a scheme to provide small credit focusing on MSMEs and agricultural projects.
• Several banks and other financial institutions have loan options at negotiable rates and collaterals, especially in MSME loans. A poultry farm loan, or 'murgi farm loan' as dubbed by some locals, is also a specific loan some financial institutions may offer.
• Cooperative societies and other self-help groups also have provisions for small credit for MSMEs and agricultural ventures.
• At FlexiLoans, we have a range of business loans for such ventures. Affordable interest rates, low bank charges and the unsecured feature make these business loans for poultry businesses affordable and accessible. You can choose from loan options like term loans, loans against POS, lines of credit, vendor financing, etc.
• FlexiLoans has a loan option that fits every individual looking to borrow; it includes a free collateral option and an overdraft feature, making financing your dream poultry business easier.

How To Apply For A Poultry Farm Business Loan

In the age of digitisation, you can apply for a loan for your poultry farm business online. All necessary formalities and document submissions can also be online for convenience and easy access.

• You can apply for the Mudra loan for poultry farms online through the https://www.udyamimitra.in portal. It is a loan by the government you can use to fund your poultry farm. The process is easy to follow, and help is available over their helpline numbers.
• After a quick eligibility check, you can access a business loan from FlexiLoans online at https://loans.flexiloans.com. If you clear the eligibility criteria, applying for the loan takes minutes.

Documents Required For A Business Loan Application

Submitting specific documents is mandatory when applying for loans to ensure that the bank or organisation can trust you and grant you the loan without an issue. Here are the main requirements:

1. Business plan for your poultry business
2. NOC from concerned authorities
3. Income tax returns (ITRs) from the past three years
4. KYC documents
5. Land ownership documents
6. Equipment quotation
7. Insurance policy details

Equipment Required For Starting A Poultry Farm

The list of equipment one needs for setting up a successful poultry farm business is fairly long and elaborate. However, the specifics will change based on the type of farm you're looking to start, the type of chicken you plan to breed and the scale of your poultry business. This equipment is sub-divided into five sections:

1. Incubation equipment
2. Egg handling equipment
3. Brooder equipment
4. Feeding and watering equipment
5. Vaccination equipment.

When buying such equipment, it is best to consult an expert. Wrong information might cause you to spend unnecessarily on gear you might not need. To avoid such a situation, contact someone already in the poultry farming business or an expert.

Several funding options are available, but before anything else, it is essential to be ready with a poultry farming business plan to go ahead sensibly.

Conclusion

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.

At FlexiLoans, we offer affordable and accessible loan options for business loans for poultry businesses. Flexible repayment plans and competitive interest rates are some of the features of our small business loans. At Flexiloans we provide collateral free business loans, msme loans, small business loans, and unsecured business loans. You can easily check your eligibility for business loan and the interest rate for business loans. For utmost convenience, you can also apply online now and start the process to fulfil your business dreams.

Alternatively, you can call us at 02268219595 to know more ways we can help you achieve your dreams.

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