The Beginner’s Guide to Starting a Profitable Poultry Farming Business in Nigeria
The poultry farming business is one of the most common and profitable businesses not just in Nigeria but in Africa.
Everybody is talking about it, it is time to go into farming or at least be involved in one aspect of farming that can complement your main job.
And the poultry business happens to be on everybody’s list.
But like I said in my previous post; the pig farming business in Nigeria; “with knowledge comes the power to make wealth”.
That being said, I advise you to read this article very carefully, and any aspect you don’t understand drop your questions in the comment section.
This article is specially written not just for beginners but also for those that have already started the poultry farming business in Nigeria.
And I will also be giving a guideline on the cost of starting a poultry farm in Nigeria. Thou my emphasis will be on the cost of starting a layer’s poultry farm.
Those who intend to start a broiler farm are not left out as the same cost can also be applicable to starting the broiler farm.
Before the whole cost of starting a layers poultry farm is given, there are several basic things you must be aware of so that you won’t regret ever entering into this business.
Table of Contents
Requirement before starting a poultry farming business in Nigeria
1. Mindset
So, before you consider starting this business, you must see it beyond just farming.
You must see this venture as a business and must be treated as one.
It is true people have made millions from this business, and I believe that is part of the reason why you chose to venture into this farming business.
But the truth is no business has the potential to succeed on its own, not even the best company in the world today.
Likewise, the worst businesses today are the result of the people running the business, not that the business doesn’t have the potential to succeed.
Contrary to what you might have heard about the poultry business, it is not as perfect as you might think.
Precisely, when people think that the poultry business is lucrative, they usually think all they need is to get in, get it done, and make millions.
If it was that easy, there won’t be any poor people in Nigeria.
And at the same time am not saying it is difficult. All am saying is that; it requires the right knowledge to run a successful poultry farm business in and outside Nigeria.
If truly you intend to get something out of any business, not just the poultry business, you have to take your time to actually learn the in and out of that particular business.
I remember a guy who owns a little poultry of about 5 chicks.
He ended up losing most of the chicks to death without understanding why the mortality rate was so high. The surviving ones he had to kill and eat them, thou they were still young.
In conducting my research as to why death decided to take a throne in his business, I discovered that the man had little to no knowledge about the whole poultry business.
Apart from this man I just made reference to, I have seen many others who had similar issues with their poultry business in Nigeria.
As I’ve previously said; you must see it as a business (a very serious one)
This mindset you must pass on to all those working with you, including your investors.
2. Land
Definitely, the land is needed. No farming business in the world can do without land.
In Nigeria, a plot of land is measured at 120 by 60. While an acre is 6 plots.
So depending on the plan you have for your intended poultry farming project.
Things to know before getting land.
- It shouldn’t be in a residential area because of the bad smell and noise from the poultry.
- Get your land in a developing area that you know will still take years before it becomes fully residential.
For example; let’s say you are going to be rearing 2000 layers. For such a large number of layers or even broilers, you are going to need one and a half plots.
But if you chose to go for two plots, it won’t really be a waste, because you get to have space where you store up your poultry equipment.
3. Training
This is really essential and it is advisable to get your employees and yourself through practical training on a farm where the owner is over 3 years in the poultry business.
Getting yourself and employees through training prevents trial and error.
Trust me when I tell you that errors can cost you millions in this business.
4. Pens
The building of poultry pens is never and must never be based on your assumptions
There is a way poultry pens are built that separate the brooding pens from the layers pen.
The brooding pen is specially designed for chicks that are still very young. And it must be designed in such a way that it meets their needs.
At that very young stage of the chicks, they don’t need to be exposed to cold. Just like our newborn babies are not advised to be exposed to cold weather.
That is part of the criteria for building a brooding pen.
Besides, it must be known that the most dangerous period of your poultry business is the first few months; “which is the brooding period” because at that time your birds are still very fragile, and if care is not taken they can die easily as a result of little things.
So the brooding stage really has to be taken care of seriously with all attention and it has to be with somebody who has actually mastered and knows how to handle this period.
There is no way you intend to go into commercial chicken farming that you won’t need a poultry pen except if you intend running an organic poultry farming.
5. Getting the Chicks
Getting the chicks is very important because it is the foundation of this whole business.
"And if the foundation is faulty what can the righteous do? Nothing."
If you get the bird from the wrong hatchery, it means there is no way on earth they are going to do well when they are growing up because of the deficiencies in them.
These deficiencies are caused in them when the vaccine they should have been given was not given, proper hatchery methodology was not observed.
This means they are going to live their lives struggling with their health.
So you have to be careful with where and how you get your chicks, it has to be from a trusted hatchery.
6. Management
How can a business succeed without good management?
Good poultry business management is needed to keep things running both for the birds and the people (employees) involved in the poultry business.
How much money can you make from poultry farming in Nigeria?
Using a case study of 500 layers of poultry farm
I wanted to use a universal price so my readers living outside Nigeria can also benefit from this article.
But I discovered that will be impossible as there are many factors to be considered and these factors command different prices in each country in the world.
So I will be using just the Nigeria poultry business market value and they are all calculated in (Naira).
And also I will only use recurring expenses. That is, I won’t be including the one-time expenses that include; land, building, and all the infrastructural requirements.
Calculation
Price of chick -N120
500 x 120=N60,000
Layers don’t eat like broilers they require 1.5kg for 4weeks
1.5kg x 500=750kg
I. E 750kg/25kg= 30bags
From 4 weeks-8weeks they require 1.5kg-1.7kg
But let’s use 1.5kg also
1.5kg x 500=750kg/25kg=30 bags
Total of chicken mash required =30+30 bags=60bags of chicken mash
Each feed mash cost =N3500
60bags x 3500=N210,000
From 9-16 weeks
Depending on their breeds they require 4kg of feed,i.e 2kg per 4 weeks.
4kg x 500 birds weeks=2000kg/25kg=80bags
A bag of the grower is N2,850 depending on the company feed
80 x 2850=N228,000
At 16 weeks many people will switch to layers’ mash but it is advisable to stick with the grower feed for 20 weeks.
16-20week they will consume 2kg also =2*500=1000kg/25kg=40bags
40bags x N2850=N114,000
Summary :
Total bag between 9-20 weeks =120 bags of grower x 2850=N342,000
Total cost so far
Chick= N60,000
Chick mash = N210,000
Chick Grower = N342,000
Total = 612,000
For the drugs, the standard calculation = 125,600 x 5/100=N1850 x 4=N7,440
The price of medication is N1,850 each month, our analysis for medication is 4 months.
For vaccination, the standard price for each bird is N6 per week,(Gumboro and Lasota only) for 500= N3,000 per week. For four weeks=3000 x 4= N12,000.
Some necessary vaccination for layers
Komorov at 6weeks=N750
Fowlpox at 8 weeks N700 per 100 doses.
Deworming at 10 weeks N450
Debeaking at 12 weeks N20 per bird= 2,000
Komorov at 16 weeks N750 per 100 dose
Total cost for vaccination = N7,050
The total cost of raising 500 layers in Nigeria so far =612,000+7,440+7,050= N626,490
At 21 weeks they start Laying.
Will expect 80% of the 500 birds to be laying. =400 eggs per day
We have 400eggs/ 30per creates= 13.33 creates x N 850price per create= 11,333 in a day
Feeding per day of layers
500 layers require 62.5kg of feed per day.
Note 25kg of layer =3150,
Therefore;62.5kg/25kg =2.5 bags
2.5 bags x 3150 =N7,875
Profit per day will be =N11,333 – N7,875=N3,458.
In a month we will have N3,458 x 30=N103,740 per month
In a year (12 months), production usually rises and falls. Let’s forfeit a month to Maintain the production standard. N103,740 x 11= N1,141,140
Layers that have gone beyond their threshold of laying will be sold (it is usually after 1 year and 8 months before it happens)
Let’s say we have a 6% mortality rate, which gives us 470 birds available to be sold.
470 x 1500 cost per layer=N705,000 for sold layers.
The total profit from what was spent on the layers less from the total sales of the 470 layers = N705,000 – N626,490 = N78,510
If BIOSECURITY measures are not strictly followed, this analysis may not be achieved
In other to prevent newcastle, and booster egg production you must give your pullets Lasota every 6 weeks.
And also, Vitamins, antibiotics, and anticoci should be done at 6 weeks intervals at this age.
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FAQ
Which poultry is most profitable?
In Nigeria, a study has shown that layers are more profitable poultry business. But this doesn’t limit poultry farming only to chickens as there are other birds that can fetch good catch such as;
Quail Farming
Duck Farming.
Emu Farming.
Geese Farming.
Guinea Fowl Farming.
Conclusion
I hope you enjoyed this article; poultry farming business in Nigeria.
Do you have questions or contributions? please drop them in the comment section below.
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I enjoyed reading this article. However, I lost you when you got to the drugs section. I could not make sense of the ‘Standard Calculation… There was also the vaccination line that is completely omitted from the calculation. Then the rest of Some necessary vaccination for layers that did not give proper calculation references to arrive at the stated amount: N7,050.
When you got into the calculations when they start laying, the medicines and vaccines are missing. So, based on these factors, I’ll put forward that this will be a money-losing venture regardless of how one scales the venture because there would be the following costs that your analysis cannot cover: housing (Pen), equipment, staff, and other costs.
Please tell me I am wrong and prove it.
Thank you,
You are wrong. For clarification on the drugs, you can tell the owner of the hatchery to put you through for better understanding.
The reason I didn’t include the Pen is that the pen is a one time cost. Those expenses (one-time cost) are what you can always cover overtime.
And no one starts making a profit from day one in any business (even if you are an employee), you must first incure expenses before the profits start coming.