Poultry Farming Business Plan

The raising of domesticated birds like chickens, ducks, turkeys, and geese which are termed as poultry farming has become one of the keys to the agricultural economy in India. Quite on the contrary, it has evolved into a vibrant and technologically enhanced sector participating extensively in food security, rural-based vocation as well as the gross domestic product of a nation. The poultry industry in India is one of the fastest-growing sectors of its agriculture, which is enjoying good growth in view of the growing need of protein, escalating disposable income and the ever-changing dietary consumption trends.

As of now, India is a third-largest egg producer and fifth-largest producer of broiler meat globally. In 2023, the poultry industry in India had a market size of approximately INR 2.8 trillion and it is forecasted to grow at a compound annual growth rate (CAGR) of approximately 10.1 percent per year to reach INR 6.7 trillion by 2032. Such a great growth potential, as well as fairly speedy returns on investment, makes poultry farming a prospective enterprise among entrepreneurs. Nonetheless, as with any business, it is as important to have careful planning and a strategic implementation of plans, and a grasp of the dynamics of the market. Any poultry farming business plan that has been beautifully drafted is not merely a paper; it is like a guide to sail through the vast waters and take full advantage of this emerging industry.

Why Start a Poultry Farming Business in India?

India is an excellent breeding ground of Poultry Farming Business Plan where there are a number of reasons why new and experienced entrepreneurs are interested in trying out this sector:

• Large and Rising Population: The population is large and on the rise and also the sensitization towards protein rich diets also puts a constant pressure on the demand of poultry products (eggs and meat).
• Suitable Returns on Capital: Broiler chicken takes a shorter time (6-8 weeks) to grow to market weight hence faster rotation of capital when compared to other livestock farming and layer hens begin to lay eggs in 18-20 weeks leading to shorter returns on capital.
• Less Land Dependent: Poultry farming does not consume a lot of land as compared to crop farming or extensive cattle rearing and can be set-up in rural as well as peri-urban areas.
• Rural Employment: This industry offers an important source of direct employment and indirect employment, especially in urban and semi-urban sectors and hence promotes economic upliftment.
• Government Support & Subsidies: Ministry of Agriculture and Farmers Welfare, NABARD (National Bank of Agriculture and Rural Development) and state animal husbandry departments provide subsidies and loans, technical support to the farmers to promote poultry farming.
• Resistance to Climate: Under correct housing and husbandry techniques, poultry birds can be reared successfully in a variety of climatic conditions all over India.

Types of Poultry Farming You Can Start

The types of poultry farming business plan it is essential to know about as they all require different needs, market opportunities and ways to operate.

1. Layer Farming

Such farming specializes in rearing hens to sell eggs commercially. Layer birds are specially developed having great productivity and laying capacity and maintaining the same throughout a given period (generally 72-80 weeks of egg giving).

Pros:

• Stable Intake of revenue through egg harvest daily.
• Great demand for eggs among all demographics.
• Comparatively limited danger when compared to broiler rearing when the birds commence laying.
• The cull birds (after they stop laying) may be sold as meat.

Cons:

• Significant time required to start the production takes as long as 18-20 weeks of gestation, which means that the initial capital investment must be made without short-term returns.
• Needs more specific housing arrangements and cool conditions to keep up maximum production of eggs.
• Eggs cannot be handled carelessly, packaged and transported on the move.
• Prone to diseases that have the potential of affecting egg production.

2. Broiler Farming

Broiler farming describes the technique of growing chicken as sources of meat. These are the birds that are raised very quickly to increase a lot of body weight. It usually is ready in the market in 6-8 weeks.

Pros:

• Short growth cycle resulting in quick returns on investment.
• Demand for chicken meat all year round.
• Quicker programming of batches, capability of changing batches frequently.
• Fairly easy management because it is all about growth.

Cons:

• Increased chances of disease outbreaks because of their increased growth and population.
• Responds more vulnerable to environmental stress (temperature, humidity).
• The level of profit is unstable as it may vary with the prices and demand of the feed in the market.
• Good feed conversion ratio (FCR) is important; low feed conversion ratio (FCR) can drastically drop the profitability.

3. Dual-Purpose Farming

This entails keeping of birds which can be used in production of both eggs and meat. The capacities of egg-laying of such breeds are average and meat quality good. Common ones in India are backyard breeds or semi-improved dual-purpose breeds.

Pros:

• Earnings that are diversified in eggs and meat.
• Can be more resistant and adaptable in the local conditions, than extreme special breeds.
• Reduced early start up expenses and namely those of modest businesses.
• Good to the farmers who need flexibility in their production.

Cons:

• Reduced productivity in relation to breeds that have been established to be more specialized l.e., low productivity in laying eggs as compared to layers, or low productivity as compared to broilers.
• Will not be able to command higher prices of both products as compared to those of the specialized products.
• Needs a balanced management process on eggs as well as meat production.

4. Hatchery Farming

Hatchery farming is involved with the farming of day old chick (DOCs) and selling it to other chicken farmers (either layer farm or broiler farms). This entails housekeeping a breeding flock owing fertile guinea pig eggs and finding them under special conditions.

Pros:

• Huge demand for DOCs by new and existing poultry farms.
• Less hands-on production of the fattening process or eggs laid.
• It has the ability to get a higher profit margin per chick provided quality is upheld.

Cons:

• They demand high technical capability involving genetic expertise, incubation expertise and bio-security.
• Large start-up outlays in incubators, hatchers and stock.
• Quite intolerant to power cuts, variations in temperatures, and disease, which may culminate in killings.
• Depends on a regular supply of fertile eggs of parent stock farms.

5. Backyard Poultry (Small Scale)

It is a small scale poultry farming, which is sometimes combined with other forms of farming and mostly consumed at home and sale of excess in local markets. It normally entails native or tough two-purpose breeds

Pros:

• Very minimal start-up and running budget.
• Uses agricultural wastes and may constitute part of integrated farms.
• Offers additional means and protein to the diets of the rural households.
• Frequently uses less artificial or rearing procedures, and attracts niche markets.

Cons:

• Small capacity of production and potential income.
• Greater risk of attack by predators and scavengers except when well anchored.
• Fewer options in prevention and control of environmental factors and disease.
• Not suitable for commercial scale activities that attempt large deals.

Essential Components of a poultry farming business plan

A one of the Best Village Business Ideas in India must be built by a strong poultry farming business plan. It ought to encompass on some key elements in poultry production such as:

1. Business Objectives and Requirements

For a poultry farming business plan, it is always clear how you intend to make your poultry farm.

• Short term objectives (1-2 years): This would be such things as setting up infrastructure, reaching a certain level of production (e.g. 5000 broilers per batch or 1,000 laying hens), finding first market channels and achieving break-even.
• Long-term Goals (3-5 years): These can be an increase of the capacity, diversification into related products (e.g. processed meat, organic eggs), positioning your brand or coming into a new market.
• Mission Statement: A brief articulation of the mission of your business or what it is all about and what you stand for (e.g. “To sustainably produce high quality, competitive poultry products that contributes towards food security and prosperity in rural areas.”).
• Vision Statement: What you hope to do with the farm going forward (e.g., To become a leading name in ethical and efficient poultry production in the region, to be known by quality and innovation.)
• Scope: Clarify the geographical location of operation and the market segment that you capitalize on. Are you domestic, regional or where do you target to distribute to?

2. Target Market Analysis

It is most important to know your customers.

• Demographics: Who will be your prospective buyers? (e.g, households, restaurants, hotels, institutional buyers, retailers, wholesalers).
• Geographic: Will you sell in the area, neighboring towns or provide the distributors to cover a broader area?
• Needs and Preferences: Are customers on the hunt of fresh, organic, processed, or value-added items? Do they want a certain way of packaging or delivering it?
• Competition: Carry out the inventory of the current poultry farms, wholesalers, and retailers within your target area. Examine their strengths, weaknesses, prices and customer base. What specifics will you use to differentiate yourself?
• Demand Forecasting: Calculate the current position as well as future demand of eggs or meat in the market of your choice. Take into consideration the change in demand (e.g. more meat being consumed during festivals).

3. Type of Birds and Scale of Operation

The third thing for a poultry farming business plan, it is a vital choice, which affects all other parts of your plan.

• Broilers vs. Layers vs. Dual-Purpose: Depending on your market analysis, amount of capital investment available and your hobby of choice, select the main variety of birds.
• Specific breeds: Conduct and choose the breed, which shows positive indicators of work under Indian conditions (e.g., Ross 308, Cobb 500 broilers; Bovans White, Lohmann Brown layers). Regarding their resistance to diseases, feed conversion ratio (FCR) as well as their productivity.
• Scale: Construct the starting capacity (e.g., the number of birds per shoot in broilers, the amount of laying hens). Begin with a limited number where learning could be done and growth achieved gradually. Estimate the number of cycles you can possibly do in a year (in case of broilers) or total egg production in a year (in case of layers)

4. Breeding Strategy and Production Cycle

In this element, the flow of operations of your farm is described.

• Chicks/Hatchling Source: Use a good supplier of day-old chicks (DOCs) in good and reputable hatcheries. Insist on vendors who have good health records as well as genetic quality.
• Rearing Stages: Before rearing the birds should be outlined with respect to the stages of growth (brooding, growing, laying/finishing) and the related management practices involved with each.
• Feed Management: Describe your feeding program with regards to the type of feed to be used at various stages of development (starter, grower, finisher broilers; chick mash, grower mash, layer mash layers). Make a reference on feed source, storage and feeding regime.
• Health and Bio-security: Come up with a strong vaccination strategy and disease control scheme. Description of bio-security (e.g. control of visitor, sanitation procedures, pest management) to assure prevention of outbreaks.
• Mortality Management: Prepare a contingency plan dealing with how to deal with mortality, chain of disposal and documentation.
• Waste Management: What are your plans on handling the poultry litter and other wastes? Think of ways such as trying to sell it as organic fertilizer or compost.

5. Marketing and Sales Plan

How do you propose to reach your customer and sell your goods?

Category	Details
Pricing Strategy	Find out a competitive but profitable price of your eggs/meat. Cost-plus pricing, value-based pricing or market-based pricing are to be considered.
Distribution Channels	Direct Sales: Farmers market to the local consumers. Wholesale: To the retailers, hotels, restaurants and caterers. Tie-ups: Processing units or big distributors. Online Sale: In case possible, local delivery services or e-commerce should be considered.
Promotion	Word-of-mouth referrals Marketing on social media Attending home-town agricultural fairs Emphasizing on unique selling propositions (e.g. organics, cage-free, breed)
Branding	One may think about a farm name and logo. Brand consistency is important in bigger operations.

6. Financial Plan and ROI Projection

This part is the most essential in terms of gaining funds and viability.

• Start-up Costs: Breakdown by each item of the first costs (land, construction, equipments, first batch of birds, initial feed, licenses).
• Operating Costs: Costs reported on a monthly basis or quarter basis (feed, labor, utilities, medicines, vaccines, transportation, marketing, repairs).
• Revenue Forecasts: Estimate the sales quantity and revenue founded on the capacity of production and prices. Remain pragmatic on the fluctuations.
• Profit and Loss Statement: project profitability during 3-5 years during.
• Cash Flow Analysis: The flow of cash in and out should be monitored so as to guarantee liquidity.
• Break-Even Analysis: Find out the amount of volume of production, or amount of money that has to be made in order to meet all the costs.
• Return on Investment (ROI): Compute the expected Return on Investment that will enable the investors to evaluate the beauty of your venture.
• Funding Request: In case you are requesting external funds, indicate your needed funds and how you will use it.

7. Risk Analysis and Mitigation Strategy

These risks can be identified and plans to reduce their severity can thus be formulated.

Risk Type	Examples	Mitigation
Biological Risks	Morbidity and mortality, outbreak of diseases, inefficient feed conversion	Stringent bio-security, vaccination, routine veterinary examination plus quality feed and good ventilation
Market Risks	Changes in price, weak demand, high competition	To diversify the sales channels, market research, value added products, contract farming, cost control
Operational Risks	Blackouts, machinery breakdown, lack of manpower, ineffective disposal of wastes	Having backup power generators, frequent maintenance of equipment, thorough preparation, good HR policies, effective mechanisms
Environmental Risks	Severe weather, natural hazards	Insurance, robust housing structure and emergency mechanisms
Regulatory Risks	The shift in government measures, new laws	Get familiar with regulations, become a part of associations in the industry

Poultry Farm Business Cost Breakdown

The most significant factor to comprehend before deciding to use poultry farming is the financial outlay that is associated with this aspect. Prices are vastly different depending on scale and type of farming and location.

Cost Breakdown

The expenses of a poultry farm may be further divided into the first-time expenditure (capital cost) and operating cost incurring in regular intervals. The cost is normally greater at the initial stage and daily expenses are continuous.

1. Infrastructure Cost

This is usually the greatest among the first investment.

• Purchase/Lease of land: The cost is very wide in terms of location. Lessor costs can be lessened through leasing.
• Shed Constructing: Design and material expenses on house construction. This consists of roof construction (asbestos, tin or concrete), walls (brick, mesh or partial walls) and floors (concrete). Take into consideration good ventilation, light and wall insulation. A farm with 1000 birds may require a shed about 2000- 2500 sq ft (in case of broilers) or 2500-3000 sq ft (in case of layers).
• Fencing: Continent of the farm.
• Water and Electricity Connection: Installation cost and related charges, bore wells in case needed so.
• Storage: Feed, equipment and perhaps eggs/meat (cold storage).
• Office/Staff Quarters: According to the size.
• Disposal Pits: To dispose of the dead birds.

2. The Cost of Bird Purchase

The price of day-old chicks (DOCs) is a huge recurrent cost to broiler farms and is initially invested in layer maps.

• Day-Old Chicks (DOCs): Depending on breeds and hatchery. Broiler Docs are generally relatively inexpensive when compared to layer Docs. ( e.g.: Broiler Doc: INR 30-50 per chick, Layer Doc: INR 40-70 per chick ).
• Parent Stock (Hatcheries): The prices of getting high quality parent stock birds to breed are high when it comes to a hatchery.

3. Feed & Supplements Cost

This is the only high-level incurring operation cost that can go as high as 60-70 percent cost of operations.

• Feed Purchases: Various types of feeds (starter, grower i.e. Harvest, finisher, layer mash) and with or without different protein and nutrient percentages. The prices are deteriorated by the costs in raw materials (sunflower oil, soybean, maize).
• Supplements: Vitamins, minerals, probiotics and other additions that would measure that people are healthy and productive.
• Medication: Vaccines, antibiotics (intelligently) and dewormers among other health-related items.

4. Equipment Cost

Important tools to be used in daily work.

• Feeders (automatic, manual), feeders storage bins.
• Waterers (nipple drinkers, bell drinkers).
• Heaters (gas brooders, electric brooders, charcoal stoves), chick guards.
• Fans, Platform fans or exhaust systems in bigger farms.
• Lighting: bulbs and timers.
• Cages/Litter: Layer farm cages(battery cages or enriched cages), or deep litter material (shavings, rice husk).
• Egg Collection/Meat Processing Equipment: Egg trays, trolleys, potential to have de-feathering machines, chillers of meat.
• Waste Management Tools: Wheelbarrows and shovels, the composting tools.

5. Wages and Salaries

• Labor Wages: Wages to the farm managers, skilled labor and daily wage. Staffing number varies with the size of a farm.
• Utilities: Depending on electricity, water bill.
• Repairs and maintenance: Maintenance of sheds, equipment and infrastructure.
• Veterinary Services: Payment structure in relation to the ordinary check-ups and emergency visits.

6. Packaging, Transport and Marketing

• Packaging Materials: Egg cartons, crates, meat plastic bags, the label of the brand.
• Transportation: Expenses on fuels of delivery vehicles, maintenance of vehicles or maintenance expenses of third-party logistics.
• Marketing Costs: Advertisement and promotion material, commission to sales.

Poultry Farm Business Investment Options

The most important thing in establishing and expanding a poultry farm is getting the right capital. There are some investment opportunities in India:

1. Self-Funded Investment

One way is to use personal savings or family money or investments of close people. This is the best autonomy and it spares interest payment.

• Pros: Freedom of debt and complete control on the operation, swifter choice.
• Cons: Lack of enough capital, increased risk to stakeholder person, could limit the fast growth.

2. MSME Finance and Bank Loans

The agricultural activities including poultry farming has loan products of commercial banks (public and private sector). The government is giving much attention to Micro, Small and Medium Enterprises (MSMEs) that is why it is facilitated to get the financing with the help of schemes such as Mudra Yojana.

• Pros: A huge amount of money involved, formal payment schedules, cheaper borrowing costs than the informal lenders.
• Cons: Collateral is needed and a detailed report on your project is required and the bank criteria on lending must be met; the process is time-consuming.

3. Subsidies and Agriculture Schemes under NABARD

NABARD (National Bank for Agriculture and Rural Development) is a leading agency supplying refinance facilities to the banks in regards to the activity of agricultural and rural development. They tend to support various plans involving subsidies regarding poultry farming especially on rural-based businesspersons, women, and scheduled castes/tribes.

• Pros: Interest rates are lower, it is possible to have a high level of the subsidies (less burden of loans), it is aimed at popularizing sustainable agriculture.
• Cons: There are eligibility criteria of schemes, they may need to be linked with bank loans and complicated application procedures.

4. Co-operative or Partnered Model

Setting up a partnership with persons to inject in capital, knowledge or resources or joining/ forming a poultry co-operative society.

• Pros: Pooled fund, distributes the risk, increases the risk of quantity purchases (feed, DOCs), enhanced market access under bulk bargaining.
• Cons: Legal agreements are required to be clear, there can be conflicts between the partners, governance to co-operatives.

Profit Potential in Poultry Farming

Broiler and layer farming is considered as a lucrative venture in India because poultry farming is largely seen as a profitable agricultural venture. The potential of this profit depends on a number of factors that include scale of operation, efficiency of management, market price of feed, market price of products and control of diseases.

Mean Profit Margin

• Broiler Farming: This business has profit margins of INR 5 to INR 25 per bird/batch and it is highly dependent on the feed conversion ratio (FCR), and death rates as well as what the market price is when it is time to sell. A well organized farm of 5000 birds has the potential of making a net profit of between INR 25,000 to INR 1,25,000 per batch. This can be huge at 5-6 batches a year.
  
• Layer Farming: In layer farming profitability is determined by the number of eggs per bird, and the farm-gate price of eggs. The normal healthy layer Hen averagely produces 280-320 eggs over a 72/80 week cycle. The net profit of every bird in single or cycle may differ between INR 100 and INR 250 based on the cost of feed, the cost of egg and price of cull bird. A 1,000 laying hen farm would have an annual net earning of INR 1,0,000 to INR 2,50,000.

Legal, Licensing & Registration Requirements

The legal and regulatory regime is a vital tool for establishing the proper regulation and functionality of your poultry farm in India.

1. Commercial Sales License of Egg/Meat

• Requirement: A business that deals with production, processing, storage and distribution or sells food products such as eggs and meat is bound by the Food Safety and Standards Authority of India (FSSAI) regulation.
• Purpose: It guarantees food safety and quality standards to instill confidence among the consumers.

2. Udyam Registration to MSME

• Requirements: It is very beneficial to Udyam to register your poultry farm as a Micro, Small, or Medium Enterprise (MSME).
• Purpose: Allows access to a range of government schemes, subsidies, priority sector lending, lower bank loan interest and easy regulatory compliance.

3. Environmental/Municipal Approval of Bigger Farms

• Requirement: Applicant must have prior environmental clearances of the State Pollution Control Board (SPCB) and/or municipal clearances where applicable in the case of large size commercial poultry farms especially those with large waste disposal.
• Purpose: To make sure that the activities of the farm do not lead to any environmental pollution (air, water, noise) and nuisance to populations.

4. Support on Animal Husbandry Department

• Requirements: They are not necessarily an outright license, but should regard registering with or seeking assistance of the Animal Husbandry Department of the state to be strongly recommended.
• Purpose: These teams tend to issue technical advice, immunization, illness monitoring, admission to government programs, and education. Such are essential to the reporting and control of disease.

Step-by-Step Poultry Farming Business Plan in India

The crucial nature of a detailed poultry farming business plan is to make the work of procuring the finance easier, laying out the plans, and operation management. This is a step-by-step procedure:

1. Executive Summary

It is a brief summary of the whole poultry farming business plan and is the last thing that is likely to be written but first to be presented.

• Business Concept: Give a brief description of your farm (e.g. A commercial broiler farm with production capacity of 10,000 birds per batch).
• Purpose and ambitions: Voice your mission and your future objectives.
• Products/Services: it should be clearly indicated what you will be producing (eggs, meat, DOCs).
• Target Market: Who are your top customers?
• Competitive Advantage: Why will customers choose your farm (e.g. organic production, type of breed, effective logistics).
• Management Team: Presenting brief information of important individuals and their skills.
• Funding Request (where necessary): List what you want to be funded and its purpose.

2. Farm Layout & Design

Extensive scheme of your physical infrastructure.

• Location Analysis: explain why you choose the location (closure to market, feed suppliers, water source, electricity, availability of labor, zoning laws).
• Site Plan: A drawing that gives details of placing:
  • Brooder house, grower house and layer/finisher sheds dimension.
  • Stock of feed.
  • Borewell, tanks.
  • Electricity connection/generator.
  • Pits used as garbage throw/composting.
  • Office/storage rooms.
  • Bio-security vials (i.e. foot dips, changing rooms).
• Shed Design: State on what to be constructed, ventilating, lighting, heating and cooling systems (should be natural /forced). Make it that it complies with animal welfare and make it flexible in the climate.

3. Production Plan (Breeds, Rotation, Feed Strategy)

This spells out your process of production of poultry products.

Bird Selection:

• Type: Broiler, Layers, Dual-Purpose or Hatchery.
• Breed: Particular breed selection part (e.g. Cobb 500, Lohmann Brown) and explanation led by demand and performance in the market.

Management of production cycle:

• Broilers: Batch size/number of batches/per year / growth rate/FCR.
• Layers: the total numbers of birds, potential age of first lay, maximum period of production and egg average of each bird in a single cycle of production.
  

Feed Management:

• Specific plan of feeding (suppliers, bulk buying options).
• What kind and how much of the feed at each stage of growth.
• Storages to avoid spoilage.
• Schedule of feeding and feeding practices.
  

Health and Bio-security Program:

• Vaccination schedule.
• Prevention and monitoring measures of the diseases.
• The prevention of pests and rodents. 
• Veterinary plan of consultation.
• Disinfection and sanitation procedures.
• Waste Management: Develop a strategy to manage poultry litter, manure and dead chickens. (e.g. Compost, sell as fertilizer, rendering).

4. Marketing & Sales Channels

The way you intend to sell your products.

• Product Description: Descriptions of your eggs/meat (size, color, fresh) or of meat (weight, quality, cut).
• Pricing Strategy: How prices will be determined (Value based, competitive, etc).
• Distribution Strategy:
  • Direct market (farm-gate and local markets).
  • Wholesalers, retailers and supermarkets.
  • Restaurants, hotel complexes, medical institutions (HoReCa).
  • Delivery services/Internet.
• Promotion & Advertising:
  • Leaflets, posters.
  • Online advertising (social media, local common).
  • There is the attendance of agricultural exhibitions or trade fairs.
  • Building contacts with prospective buyers.
• Customer Relationship Management: How will you develop and maintain customer loyalty?

5. Financial Projections

The central poultry farming business plan.

• Start-up Costs: Detailed breakdown of all costs under initial capital items (Land – construction – equipment and first batch of birds and initial feed stock – licenses – working capital).
• Operating Costs: Breakdown of fixed monthly/quarterly costs (feed, labor, utilities, medicines, transport, marketing and maintenance).
• Revenue Forecasts: Good estimates of sales volume and revenue in 3-5 years by taking into account growth, seasonality and prices.
• Profit & Loss Statement: Anticipated revenues, as well as costs in projects during the passage of time to display profitability.
• Cash Flow Statement: reveals how the cash has moved in and out of this business, which is also important in liquidity management.
• Balance sheet: A picture of assets, liabilities and equity at measurement.
• Break-Even Analysis: Determination of the level of the sales required to service all the costs.
• Funding Request (where appropriate): Request amount, terms desired and budgeted use of funds. Bring up a sum of repayment in case of a loan.

6. Operations and Staffing

The day-to-day running of the farm.

• Work Flow: Daily routines ( feeding, watering, collecting the eggs, cleaning, health check).
• The major staff: Farm owner/manager, expert laborers, veterinary consultant.
• Organizational Structure Reporting: Reporting lines, roles and responsibilities.
• Hiring Plan: The way you will attract, qualify and maintain employees.
• Compensation & Benefits: Workers remuneration, bonuses and employee welfare.
• Record Keeping: how maintaining up to date records of the production, mortality, feed consumption, sales and financial transactions is important.

7. Risk Management Strategy

Preparation and prevention of possible poultry farming business plan problems.

• Risk Identification: Name all the possible internal and external risks (diseases outbreaks, market volatility, Increase in the price of feeds, market volatility, natural disasters, regulatory changes, Equipment failure, labour problems).
• Risk Assessment: Analyse the threat and the possible extent of each identified threat.
• Mitigation Plans: any short-falls in the risk will be addressed such that a plan is provided in mitigating the probability or impact of such a risk (e.g., strong bio-security against disease, spread of risk against market volatility, contingency fund against financial shocks).
• Insurance: Take into account insurance consideration (e.g. livestock insurance, property insurance).
• Back-up Planning: How will it be addressed should one of the key risks occur (e.g. disease outbreak that necessitates a culling operation)?

Conclusion

In India the poultry sector represents a relatively new as well as evolving entrepreneurial proposition. It presents a huge opportunity for income generation as demand for protein continues to grow, and there is also considerable government support for the industry. As an entrepreneur the poultry farming business plan will provide a short-term and substantial return on your investment; however, the profitability of any venture will depend on how much planning, and following good practice, as well as pro-actively managing risks that an entrepreneur applies to the poultry sector.

With an effective, long-term business plan that considers market conditions, operational issues; your financial estimate and recently published regulations, those wishing to pursue a poultry venture will help to provide an income for your family, and develop your own personal wealth, food security for the nation’s population, and enhance rural living. So, ‘good luck’, accept the challenges, do the hard work, and one day see your poultry farming business take off!

Suggested Read: How to Start a Dairy Farm in India

FAQs

How much land do I need for a small poultry farm? 

 A small broiler farm with 1,000 birds would require approximately 2,000-2,500 sq ft for sheds, plus additional space for storage of feed and other facilities. 

Which type of poultry farming is more profitable in India? 

From the perspective of profitability, both chicken broiler farming and layer farming offer good levels of profitability.

What are the biggest risks in poultry farming? 

The biggest risks in poultry farming include disease outbreaks; changes in feed prices and changing market prices for eggs/meat.

What support is available from government agencies to support my poultry farm in India? 

Yes. Government support for poultry farming is available through various government agencies including NABARD and the state Animal Husbandry Departments that offer subsidies.