Poultry Farming Business Plan Poultry Facts
Poultry Farming Business Plan Poultry Facts
Jambo Poultry Farm is a world – class and registered poultry farm and egg production business that will
be based in the outskirt of Kisumu City, Kenya. We have done our detailed market research and
feasibility studies and we were able to secure a thirty hectares of land to start our poultry farm and egg
production business.
Our poultry farm is going to be standard commercial poultry farm hence will be involved in raising,
processing and marketing chickens and eggs (Table eggs produced by battery chickens (white), Table
eggs produced by battery chickens (brown), Hatching eggs, Specialty eggs, and Table eggs produced by
free-range chickens) on a commercial level; we export chickens, processed chickens and eggs to other
countries of the world.
We are in the commercial poultry farm and egg production line of business because we want to leverage
on the vast opportunities available in the agriculture industry, to contribute our quota in growing the
Republic of Kenya’s economy, in national food production, and also to export chicken and eggs from the
country to other countries and over and above to make profit.
Jambo Poultry Farm is well positioned to become one of the leading commercial poultry farms and egg
production business in the East and Central Africa, which is why we have been able to source for the
best hands and machines to run the company with.
We have put processes and strategies in place that will help us employ best practices when it comes to
commercial poultry farms and egg production processes as required by the regulating bodies in the
Republic of Kenya. At Jambo Poultry Farm, our customer’s best interest will always come first, and
everything we do will be guided by our values and professional ethics.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s
needs precisely and completely. We will cultivate a working environment that provides a human,
sustainable approach to earning a living, and living in our world, for our partners, employees and for our
clients.
Jambo Poultry Farm is a private registered commercial poultry farm and egg production company that is
owned by Mr. Innocent Oluoch and his immediate family members. The poultry farm will be fully and
single handedly financed by the owner – Mr. Innocent Oluoch and his immediate family members at
least for a period of time.
Before starting Jambo Poultry Farm, Mr. Innocent Oluoch was the Head of a renowned Agriculture
Research Institute in Kenya. He worked in the industry for well over 12 years before resigning to start his
own commercial poultry farm and egg production business. He is of course well experienced and highly
qualified to run this type of business.
Our Services
Jambo Poultry Farm is a standard commercial poultry farm and egg production company that is
committed to raising chickens and producing eggs for both the Kenya’s market and the global market.
We are in the commercial poultry farms and production line of business to make profits and we are
going to do all we can to achieve our business goals, aim and objectives.
These are the areas we will concentrate on in our commercial poultry farms. If need arises we will
definitely add more poultry produce to our list;
We are aware of the importance of building a solid business structure that can support the picture of
the kind of world class business we want to own. This is why we are committed to only hire the best
hands within our area of operations.
At Jambo Poultry Farm, we will ensure that we hire people that are qualified, hardworking, and creative,
result driven, customer centric and are ready to work to help us build a prosperous business that will
benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management
staff and it will be based on their performance for a period of five years or more as agreed by the board
of trustees of the company. In view of the above, we have decided to hire qualified and competent
hands to occupy the following positions;
SWOT Analysis
Jambo Poultry Farm do not intend to launch out with trial and error hence the need to conduct a proper
SWOT analysis.
We know that if we get it right from the onset, we would have succeeded in creating the foundation
that will help us build a standard commercial poultry farm and egg production company that will
favorably compete with leading commercial poultry farms and egg production companies in Kenya and
in the rest part of the world.
We engaged the services of a core professional in the area of business consulting and structuring to
assist our organization in building a well – structured commercial poultry farm and egg Production
Company that can favorably compete in the highly competitive commercial poultry farms and egg
production industry in the country and the world at large.
Part of what the team of business consultant did was to work with the management of our organization
in conducting a SWOT analysis for Jambo Poultry Farm. Here is a summary from the result of the SWOT
analysis that was conducted on behalf of Jambo Poultry Farm;
Strength:
Our strength as a commercial poultry farm and egg production company is the fact that we have healthy
relationships with loads of major players (agriculture merchants) in the industry; both suppliers of
poultry feeds and medications and buyers of chickens and eggs within and outside of the country.
We have some of the latest commercial poultry farming hatchery, tools and equipment that will help us
raise and produce eggs in commercial quantities with less stress. Aside from our relationship (network)
and equipment, we can confidently boast that we have some the most experienced hands in Kenya in
our payroll.
Weakness:
Our weakness could be that we are a new commercial poultry farms and egg production company in the
country, and perhaps it might take us sometime to attract big time customers in the industry. We are
aware of this and from our projection will overcome this weakness with time and turn it to a major
advantage for the business.
Opportunities:
The opportunities that are available to us as a standard commercial poultry farm and egg Production
Company cannot be quantified, we know that there are loads of households, and businesses such as
hotels and fast food restaurants that can’t do without daily supply of chicken and eggs. We are well
positioned to take advantage of this opportunity
Threat:
Some of the threats and challenges that we are likely going to face when we start our own commercial
poultry farm and egg production company are global economic downturn that can impact negatively on
household spending, bad weather cum natural disasters (draughts, epidemics), unfavorable government
policies and the arrival of a competitor (a commercial farm that engage in the rearing of chickens and
other birds) within same location.
There is hardly anything you can do as regards this threats and challenges other than to be optimistic
that things will continue to work for your good.
Market Analysis
Market Trends
The Poultry and Chicken Egg Production industry has greatly benefited from campaigns advertising the
health benefits of chickens and eggs as a good source of protein. No doubt, the increased demand of
chicken and eggs from households and food related businesses and of course the growing popularity of
specialty and processed eggs have rapidly improved revenue growth for the industry.
In the face of this growth, profit margin has suffered from rising feed costs and also regulations
regarding animal welfare. As a matter of fact, one of the new trends is that with the recent
advancement in technology, poultry farmers can now comfortably predict and produce the quantities of
chickens / birds and eggs per time.
Naturally, the target market of those who are the end consumer of commercial poultry farm produce
and also those who benefits from the business value chain of the poultry farming and egg production
industry is all encompassing; it is far – reaching.
Every household consumes produce from commercial poultry farms be it chicken or egg. So also almost
all hotels and fast restaurants sell chicken and eggs. In essence a commercial poultry farmer should be
able to sell his or her chicken and eggs to as many people as possible.
In view of that, we have positioned our business to attract consumers of chickens and eggs not just in
Kenya alone but also other parts of the world. We have conducted our market research and survey and
we will ensure that we meet and surpass the expectations we set for the business.
Below is a list of the people and business that we will market our chickens and eggs to;
• Households
• Individuals
• Hotels
• Restaurants
• Fast food eateries
• Agriculture merchants
As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming
cum poultry farming and egg production business. This is so because part of the success of any nation is
her ability to cultivate her own food and also export foods to other nations of the world.
We have done our homework and we have been able to highlight some factors that will give
us competitive advantage in the marketplace; some of the factors are effective and reliable poultry
farming and egg production processes that can help us sell our produce at competitive prices, good
network and excellent relationship management.
Another competitive advantage that we are bringing to the industry is the fact that we have healthy
relationships with loads of major players (agriculture merchants) in the industry; both suppliers of
poultry feeds and medications and buyers of chickens and eggs within and outside of the country.
We have some of the latest commercial poultry farming hatchery, tools and equipment that will help us
raise and produce eggs in commercial quantities with less stress.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best
within our category (startups commercial poultry farms and egg production companies in the industry. It
will enable them to be more than willing to build the business with us and help deliver our set goals and
achieve all our business aims and objectives.
Our sales and marketing team will be recruited based on their vast experience in the poultry farming
and egg production industry and they will be trained on a regular basis so as to be well equipped to
meet their targets and the overall business goal of Jambo Poultry Farm.
Over and above, we have perfected our sale and marketing strategies first by networking
with agriculture merchants and businesses that rely on daily supply of chicken and eggs from the poultry
farms and egg production industry that are likely to become our customers.
In summary, Jambo Poultry Farm will adopt the following strategies in marketing our commercial farm
produce;
• Introduce our business by sending introductory letters alongside our brochure to stake holders
in the agriculture industry, households, hotels and restaurants and agriculture produce
merchants et al.
• Advertise our business in agriculture and food related magazines and websites
• List our commercial poultry farms and egg production business on yellow pages ads
• Attend related agriculture and food expos, seminars, and business fairs et al
• Leverage on the internet to promote our business
• Engage in direct marketing
• Encourage the use of Word of mouth marketing (referrals)
Over and above, if you want to get the right pricing for your chicken and eggs, then you should ensure
that you choose a good location for commercial poultry farm, choose a good breed that will guarantee
bountiful harvest, cut the cost of running your poultry farm to the barest minimum and of course try as
much as possible to attract buyers to your poultry farm as against taking your eggs and chickens to the
market to source for buyers; with this, you would have successfully eliminate the cost of transporting
the goods to the market and other logistics.
We are quite aware that one of the easiest means of penetrating the market and acquiring loads of
customers for all our eggs and chickens is to sell them at competitive prices hence we will do all we can
to ensure that the prices of our poultry farm produces are going to be what other commercial poultry
farmers would look towards beating.
One thing is certain; the nature of commercial poultry farming makes it possible for poultry farmers to
place prices for their eggs and chicken based on their discretion without following the benchmark in the
industry. The truth is that it is one of the means of avoiding running into loss.
Payment Options
The payment policy adopted by Jambo Poultry Farm is all inclusive because we are quite aware that
different customers prefer different payment options as it suits them but at the same time, we will
ensure that we abide by the financial rules and regulation of the Republic of Kenya.
Here are the payment options that Jambo Poultry Farm will make available to her clients;
• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via Lipan a Mpesa
In view of the above, we have chosen banking platforms that will enable our client make payment for
farm produces purchase without any stress on their part. Our bank account numbers will be made
available on our website and promotional materials to clients who may want to deposit cash or make
online transfer for chickens and eggs.
We know that it is important to create strategies that will help us boost our brand awareness and to
create a corporate identity for our commercial poultry farm and egg production business. Below are the
platforms we will leverage on to boost our commercial poultry farm and production brand and to
promote and advertise our business;
This means that the start-up can either be low or high depending on your goals, vision and aspirations
for your business. The tools and equipment that will be used are nearly the same cost everywhere, and
any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a commercial poultry farm and egg production business; it
might differ in other countries due to the value of their money. Below are some of the basic areas we
will spend our start – up capital in setting up our commercial poultry farm;
• The Total Fee for incorporating the Business (commercial farm) in Kenya – $120.
• The amount needed to acquire / lease a farm land – $50,000
• The amount required for preparing the farm land (poultry fencing et al) – $30,000
• Legal expenses for obtaining licenses and permits as well as the accounting services (software,
P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of the business. in the amount
of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount
of $3,580.
• The total cost for hiring Business Consultant – $2,500.
• The total cost for payment of insurance policy covers (general liability, workers’ compensation
and property casualty) coverage at a total premium – $9,400
• The amount required for the purchase of the first set of chickens – $10,000
• The cost for acquiring the required working tools and equipment / machines / hatchery et
al– $50,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The Cost of Launching an official Website – $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000
Going by the report from detailed research and feasibility studies conducted, we will need an average
of $500,000 to start a standard commercial poultry farm and egg production business in the country.
Financial Projection
Sources of Income
Jambo Poultry Farm is in the poultry farms and egg production line of business for the purpose of
maximizing profits hence we have decided to explore all the available opportunities within the industry
to achieve our corporate goals and objectives.
Below are the sources we intend exploring to generate income for Jambo Poultry Farm;
Raising, processing and marketing chickens on a commercial level; we export chickens, processed
chickens and eggs to other countries of the world.
We have perfected or sales and marketing strategies and we are set to hit the ground running and we
are quite optimistic that we will meet or even surpass our set sales target of generating enough income
/ profits from the year of operations and build the business from survival to sustainability with the
shortest period of time.
We have been able to critically examine the poultry farms and egg production business and we have
analyzed our chances in the industry and we have been able to come up with the following sales
forecast. The sales projection is based on information gathered on the field and some workable
assumptions as well with respect to the nature of commercial poultry farm and egg production business
that we run.
Below are the projections that we were able to come up with for the first three years of running Jambo
Poultry Farm;
N.B: This projection is done based on what is obtainable in the industry and with the assumption that
there won’t be any major economic meltdown that can impact negatively on household spending, bad
weather cum natural disasters (draughts, epidemics), and unfavorable government policies
Jambo Poultry Farm is a family business that is solely owned and financed by Innocent Oluoch and his
immediate family members. He does not intend to welcome any external business partner, which is why
he has decided to restrict the sourcing of the start – up capital to 3 major sources.
One of our major goals of starting Jambo Poultry Farm is to build a business that will survive off its own
cash flow without the need for injecting finance from external sources once the business is officially
running. We know that one of the ways of gaining approval and winning customers over is to retail our
chickens and eggs a little bit cheaper than what is obtainable in the market and we are well prepared to
survive on lower profit margin for a while.
Jambo Poultry Farm will make sure that the right foundation, structures and processes are put in place
to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive
our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it
will be based on their performance for a period of six years or more. We know that if that is put in place,
we will be able to successfully hire and retain the best hands we can get in the industry; they will be
more committed to help us build the business of our dreams.