24TH November, 2017


This plan is not complete without the excel sheets. The excel sheet comprises of the cost of production, charts on feeding and medication as well as computations on profit and loss, cash flow analysis, viability and other projection. If you need the complete plan, plan to invest a token of Twenty thousand naira for a full copy. This write up is meant to provide a clear picture on the Project: ETTE POULTRY to enable the investors allocate all available resources and to financially plan accordingly. It will serve also as a guide to the executors of this plan.



ETTE POULTRY Farm is to be located in Enugu State. The land would be fenced and planned for a pilot phase of 3600 layer poultry. Basic poultry training would be undertaken. During Pilot phase, ETTE POULTRY Farm at peak production should produce an average of 87 crates (30 eggs/ crate) per day and consumes feed of (14.5 bags of 25 kg) per day. The average daily revenue could sum up to ₦72,000 while the daily expenditure on feed will be at ₦46, 400. Revenue per annum would be about ₦25.5 million and gross profit about ₦768,000 after deduction of cost of feed. Average monthly Net Profit after tax is N505,000. Spent layers which presently goes for about N1200/ bird, would be sold at the end of one year of lay and utilized in procuring replacement birds. The forecast suggest that, N23 million will be required as capital for this project.
ETTE Farms is located close to some important town in the South-east of Nigeria; Ette and , Enugu Ezike, Nsukka Ngo Ogugu Ankpa, Enugu, Obollo and other cities in Enugu, Kogi states and environ. The location of the farm as advantageous because its presence close to the boundary of Enugu and Kogi states give it access to several markets such as the Ette central market
This study confirmed that ETTE Poultry at the level it plans to operates; the market has the capacity to absolve.
Nigeria is a middle income, mixed economy and an emerging market with great prospects for poultry products. Growing health concerns in Nigeria about smuggled imported poultry products has led to a 20% increase in local bird’s production in the last one year, boosting farmers’ earnings and creating more jobs in the local industry. The poultry, mainly chicken are now sold by large emerging superstores across urban centers. Future sales are expected to surpass past performance.
The poultry industry in Nigeria had been rapidly expanding in past years, increasing from 185,300 MT in 2001 to 268,000 MT in 2011. Very high input costs in 2008 and 2010, caused flock expansion to effectively cease in 2008 and 2011.Although an import ban on Corn was lifted in 2008, most poultry producers are wary to import.
The poultry industry was not left out from the effect of recession in Nigeria last year. The last quarter of 2016 was a challenging one for farmers as increase in price of maize resulted in 60% increase in the cost of feed and the subsequent increase in the price of eggs. Due to the recession and the seasonal heat at that time of the year, egg sales dropped drastically resulting in heavy glut. This has shrink the expansion rate of the poultry industry in the last two quarters of the year but demand has increased hence a good time to invest in the industry.
Across the different regions of the country, the poultry sector is characterized by a low level of production specialization; the overall picture is of a relatively articulate sector in which regional peculiarities reflect important complementarities. Before the outbreak of H1N5, the Nigerian poultry population was estimated at around 150 million, with a large majority of local chickens and a minority of exotic breeds. Following the outbreak, the poultry sector witnessed a brief decline before settling today, despite many problems, the poultry sector is again in expansion at 4.1% annual growth
The report analyses two principal aspects of the poultry market chain: commercialization and production. The market structure for egg reflects high coefficients. This implies a high level of inequality and consequently high inefficiency in the market structure. However, because of high demand, the ineffectiveness of the distribution channel is not noticed.
Production is at low ebb because only large firms can attract capital for full capacity- utilization of their production system. Effective cost minimization therefore boosts profit maximization for farmers, all things being equal.

Keen observation of the prominent poultry producers in Nigeria using the competition analysis indicators shows that market domination is preponderance upon the volume of investment both to human and material, the favorable government policies and display of professionalism in their operations. More so, poultry products are in high demand.
In summary, poultry industry as shared by these giants such as Ojemia Farms, Zartech, CHI Farms, Obasanjo Farms, Tuns Farms, Agrited, Max, Farm Support, Amo, Best Line, Kamadex, etc. and have the following strengths, weaknesses, opportunities and threats as outlined.

The strength of the business approach by these major poultry farmers are cost effectiveness, service quality and customer loyalty. Other aspects of their operations are flexibility, innovation, response to external pressures, creativity and company stability. All the big players have existed for at least a decade with some existing over three decades
In terms of experience, there is a sheer display of professionalism due to their long duration and diversity. Poultry market leaders have made wide contacts in virtually all areas of their business operations, from supplies to clients, government officials to business professionals.

The areas of weaknesses identified among these poultry stakeholders in Nigeria are dependence on capital financing, credit, loan and other financial debts. Furthermore, the limited impact the products of each poultry producers, distributor, marketer or farmer have in the market. This may be attributed to lack of knowledge of modern tools in promoting products or inadequate funding.
Sound strategies can be developed to control the effect of these weaknesses and improve business facilities and acquire a good market share by employing modern tools in information dissemination, employment of modern operations and take advantage of the expanding market.

In poultry business in Nigeria, there are grey areas where proper timing, as well as other factors such as required innovation may improve the business chances. Existing company facility can support product line extension with relatively little or no new investment. The need for product quality and adequate after sales services is a great opportunity that motivates buyers to go the extra mile.
The proposed farms should relate her focus to a segment of the present market that is being overlooked or ignored. That is one reason we proposed large production of Point of lay birds.

The external threats to the poultry business are the operations of the competitors who already have business relationship with the industrial end users of poultry products particularly when it comes to broiler production.
4.1. Disease outbreak

Diseases such as Newcastle disease, Gumboro and Mareks are still endemic in Nigeria. Most viral diseases of poultry are prevented by vaccination hence strict vaccination protocol shall be put in place for all birds from the breeders, broilers and pullets. The chicks shall also receive routine vaccine before leaving the hatchery to ensure immunity in the client’s farm.
4.2 Bacterial diseases are often product of contaminated water source. To prevent diseases such as salmonellosis, water treatment and continuous monitoring of water quality shall be a practice to ensure good flock health.
4.3 Fungal infection could result from moldy. Training of staff to identify such hazards shall eliminate or minimize the outbreak of fungal disease. Example Aspergilloses
4.4 Reportable poultry diseases such as Avian Influenza could result in eradication of the whole farm even if the outbreak is not registered in the farm but a nearby farm. The only possible control point is in insurance.
4.5 Natural disasters such as wind, flood and community crises could also be covered by insurance
4.6 Fire, burglary and other hazards shall by insured policies attract 2.5% of the total cost of the birds

5.1 Industry Overview
Across Nigeria, there are many industries/firms distributing poultry products. Backyard producers seem to outnumber standard poultry farms. They boost the products, though the demand still outweighs supply.
Egg production is the most popular form of poultry farming in Nigeria because egg consumption cut across wide divide because of the following:
i. Pullets are hardy and more resistant to diseases relative to other birds.
ii. Eggs are commonly consumed despite religion or age
iii. Unit of production which is an egg is relatively affordable.

Poultry production come in different forms ranging from parent stock breeder, meat (broiler/production), egg production, quail production, turkey production, ostrich farming, duck farming, geese farming and ornamental bird rearing among other. The business could also come in specialization such as brooding, Point of Lay production, liquid egg package, egg trading, cold room marketing, day old chicks, feed milling, birds transportation or egg deport business.
Since the industry is vast, entrepreneurs with limited resources were advised to focus on an aspect of the industry and with time add other aspect either for vertical or horizontal integration in Nigeria. This industry is still grossly untapped and any part of the industrial possesses great potential. Specialization and continuous improvement on skills is always paramount.
Poultry industry is a multi-billion naira industry; the major hindrances to the growth of the industry in Nigeria ranges from absence of credit, high interest rate, high cost of maize, unavailable electricity which is important for cold rooms, incubators and operation of automated cages. Hence the industry is still fallow in Nigeria with a high prospect. Right now, the demand for egg, broiler meat, day old chicks, day old poultry, remains overwhelmingly high as confirmed from our market study. Farms are kept on waiting list for chicks sometime for two months especially for quality pullet chicks. Egg demands are also met with similar supply dynamics.


ETTE POULTRY will provide employment in the first year of about 3600 birds for at least two persons. Contractors and Suppliers should also benefit. Nationally, it will reduce cash flight or loss in Forex and revenue generated is about N20 million per annum. The Banks, Insurance Companies and Agricultural Consulting Firms shall all be beneficiaries with the attendant tax going to the government. The manure will service proximal farms and far farms. Egg marketers, maize or feed suppliers, transporters, spent birds’ marketers etc shall all be affected positively. The impact on the economy will be positive.

The marketer or the owner will mobilize market via shop to shop awareness at the initial time. The consultant, if engaged could also mobilize market for the new farm. Thereafter, referrals from old customers will be enough to meet the supply need.

Plastic crates should be preferred because of their durability; four hundred (200) packs could be purchase with N30, 000. Crates carries 30 eggs, 10 crates can stay on top of each other. The van moves them every evening to the city in close proximity to the potential customers or directly to their depots within and outside Enugu State. Eggs when refrigerated can last up to a year. Rooms in which eggs are to be kept for upward of one week could be air-conditioned. Direct sunlight and excessive heat above 30°C enhances egg spoilage, hence good ambience for the product shall be enhanced. Effort shall be put in place that eggs shall not spend more than 3 days before they are sold. Person to person marketing is to be employed to gain good customer base.
All egg producers in Enugu State are competitors. To remain outstanding in the market, the eggs must be cleaned and labeled, the customers shall be treated nicely and innovation brought into packaging and marketing. Even when one person offers to buy off all eggs produced, such offers shall be rejected because you cannot keep eggs in one basket, customer base shall be wide and diverse.

Deffering Machine For Sale

1. Ette
2. Nsukka
3. Enugu-Ezike
4. Whole of Eastern Region
5. Middle Belt
6. Internet Market
7. Nigeria as a whole

Once the borehole has been sunk, routine analysis shall be bi-monthly. Water shall be pumped directly from the borehole into the main overhead tank. Water from the main overhead tank gets to smaller overhead tanks situated inside the housings. Drugs and vitamins can be added here. The water from here flows to the calibrated tank attached to the watering troughs. The calibrated tanks here can serve to dispense vaccines. Routine laboratory test shall be done to ensure good water quality. The water source shall be far from septic tank or other sources of contaminants.

Most contact workers shall be housed in the farm. Attendants and manager get to the pen latest at 6.30am. Disinfectants are mixed and poured at the entrances. They change into work cloth and foot wears and ensure that legs are dipped in the bath containing disinfectant as well as wash hand with same. Each nest is observed for discomforted, sick or dead birds. Such animals are then culled and recorded. Water is checked, each nipple is tested to ensure normal flow. Blocked nipples are cleaned or replaced. Feed (already measured) is given to the birds by evenly pouring them into the troughs. Eggs are packed from the cage using baskets or directly into the crates. Record is taken; this shall include number of morbidity, number of mortality, number of eggs, abnormal observation on feces or in the pen etc. The eggs now packed in crates, are taken to the store room for onward transport out to the city facility or to the distributors.

A shop within the town shall serve as the ware house feed and as depot for the produced eggs. Feeds from the company will be loaded in trucks. Sales of feeds to other farmers will generate additional income and provide the farm with feed at a reduced cost. When buyers buy from the farm egg outlet, it reduces visitation to farm which has attendant risk of break of security and biosecurity.

a) Sick or distressed bird – Cull (remove)
b) Dead bird – Remove, refrigerate, report post
c) Rejection of feed – Report, analyze feed
d) Staff stole egg – Fire/Sack
e) Odour from matter – Clean Immediately
f) Glut – Store in cold room
g) Low production – Diagnose diseases malnutrition or stress

Follow the operation system. Daily records shall be kept in the farm diary. Attendants report to manager, the manager reports to visiting vet/consultant cum the owner and vice versa.

I. Source of birds: Utilize recognized agency, company or hatchery.
II. Feed: Buy feeds only from reputable mills, check for spoilage and store in non-humid/moist environment.
III. Water Management: Water source checked for impurities, watering trough should be cleared often to avoid contamination with feces.
IV. Vaccine: Vaccine break, immunity test purchase from reputable vets.
V. Formite: Disease could be transferred from one farm to the other. No worker shall keep birds or ever work or assist in another farm while still working in the current farm.
VI. Poisoning: Drugs shall be doubly checked to ensure they are not contraindicated or expired correct-dosage applied always.
VII. Rodent: Rodent control shall be in place.
VIII. Shrinkages: Poultry workers could steal eggs and birds. Check every reduction in production, make no sales in the farm, bury all dead birds and fire any thief immediately.
IX. Debt: Do not sell on credit
X. Glut: Increase customer base internet activity.

The Stocking plan involves the purchase of Birds as 3,600 POL which will be placed in the first year. The birds will be purchased at the age of 14 weeks and hence will take about 6 weeks to come to lay. They should peak by week 30 when they are 17 weeks in the farm and spent by week 70 and thereafter sold as “Old Layers”. Within one month, the Spent Layers should have been sold out. Another set of 3600 POL will be introduced by 60 weeks in lay for the first stock as replacement stock for the second stocking. See 22.0 QUALITY CONTROL
Biosecurity measure will be put in place to prevent disease outbreak. Foot bath for visitors and workers will be put in place at the entrances. Every vehicle coming into the facility will also pass through a bath and get sprayed. All quality control standards will be adhered to strictly so as to produce a world class standard. Animals and materials will be kept away from the poultry pens. Biosecurity training will be mandatorily given to attendants and other staff.

Table 4: Profit and Loss Projection
View on the attached excel

POL birds of about 15 to 16 weeks of age and subsequently on getting spent at about 60 weeks in lay are sold off and replaced. Birds are to be reared in battery cages under bio-secured conditions. Emphasis should be placed on complete vaccination even when such vaccines were administered during brooding and at grower age. POL upon purchase from reputable farms specialized in POL production is introduced directly into the cages. From the time of lay, when egg production commences at about 18 or 20 weeks, they are fed on layers mash till they become old/spent layers. The birds will be kept in-lay for 60 weeks before they are sold off as Old Layers.
Appropriate medications will be given at the required stages in the course of raising the birds. Bio-secured environment will also be ensured to reduce the incidence of disease outbreak. A mortality rate of 10% room should be expected from POL to the point where they are sold off as spent layers.

A Marketer could be employed to sell the eggs from one egg deport to another/ through the marketing activities especially when the capacity is large up to 3600 birds, many clientele base shall be created. These customers will be allocated dates. They either pick up the eggs from the farm on their dates or have it delivered with the farm van at a price. All customers shall only be given allocation with a confirmation of a bank payment. To expand the clientele base, advert will be placed on different fora online.

Table 6. (View the table on the attached xcel)
The projected cash flow for the ETTE POULTRY Poultry is presented in attachments for 3600 capacity. Positive net cash balances are realized at the end of laying year. From the projection, the farm shows profitability.
ETTE POULTRY Farms Plan is put in place for the purposes of educating potential poultry farmers. To be able to effectively utilize this plan, contact us for the excel sheets. Those are the main working instruments.

Dr Paul Oche Adoyi
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