Complete Business Plan on Production of Eggs

Complete Business Plan on Production of Eggs

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Egg production is the most popular form of poultry farming because egg consumption cut across wide divide.

Poultry production comes in different forms ranging from parent stock breeder meat (broiler production), egg production, quail production, turkey production, ornamental bird rearing, geese farming, duck  farming, ostrich farming.

The farming business could also come in specialization such as brooding, liquid egg package, point of lay production, egg trending, cool room marketing, birds transportation, egg  deport business, day old chick and feed milling. Because of the vastness of this industry Goodnews poultry farm focus will be on an aspect and with time add another aspect either for horizontal or vertical aspect. This industry is still grossly untapped and any part of the industrial posse’s great potential. Specialization and continuous improvement on skills is always paramount.

Poultry industry is a multimillion naira industry. The major hindrances to the growth of the industry ranges from absent of credit, high cost of maize, high interest rate, unavailable electricity which is important for cool rooms, incubators and operation of automated cages. Because of the fallow nature of the industry, the prospect is high. Right now the demand for egg, broiler meat, day old chicks, day old poultry etc remain overwhelmingly high.


Idara Poultry Farm plans to participate in egg production and marketing. Its goals are:

  • To produce nutritious egg, generate employment and create wealth for investors.
  • To build a mechanized poultry that is efficient and rewarding.
  • To be number one poultry farm product supplier in Nigeria
  • Cash flow sale sufficiency by the end of the first year


The business entails keeping chicken from day old to 14weeks when the growers will be transfer to cages. The caged birds at the age of 19-22 weeks start to lay eggs. The eggs are packed in crate of 30packs, transported to the city where they are distributed to customers. The laying birds by the age of 60-75weeks of  laying, are sold out as spent layers of meat. Our mission is to raise chicken at a very profitable venture.

Farm Ownership                                                    

At its initial stages; Idara  Poultry Farm is a sole Proprietorship owned by Miss Idara Mark, the founder and president. It will be registered as a fictitious business name. We   will move up to incorporate as in accordance with the nature of the business later, based on growth of the business and conditions as they arise.                                                                                                                                      


Idara Poultry Farm will be located in Abak municipality Akwa Ibom State. The facilities will include a 2400 bird’s capacity poultry pen with the brooding pen attached to it.                                                                                     

 Contact information                                                                                            

We can be contacted through our phone number: 08000000000.We will also create both Facebook and twitter handle so that some of our customers can table their   complaints, feedback and recommendations. With time, website will also be created so that customers will be able to familiarize themselves with the poultry world. All these and the phone numbers of the management team will be distributed in flyers and in the means we market our business as our contact information.

 Challenges Facing the Poultry Industry                                                          

Poultry farming has some challenges that need to be attended to with vigor. Below are some of the common challenges that are faced by poultry farmers:

Death of Chickens: In poultry, one or many chickens usually die because of their fragile nature and the weather they are living in. some factors such as heat and overcrowding causing that death can be controllable.

Disease Pneumonia and other minor diseases are among problems faced by

Poultry farmers, but this problem can be solved by seeking a veterinary doctor


 Eggs are a very good source of inexpensive, high quality protein. More than half the protein of an egg is found in the egg white along with vitamin B2 and lower amount of fat and cholesterol than the yolk. The whites are rich source of selenium, vitamin D, B6, B12 and minerals such as zinc, iron and copper. Egg yolks contain more calories and fat. They are the source of cholesterol, fat soluble vitamin A, D, E and K and lecithin- the compound that enable emulsification in recipes such as hollandaise or mayonnaise.

Some brands of egg now contain omega fatty acids, depending on what the chicken had be been fed. Eggs are regarded as “complete” source of protein as they contain all eight essential amino acid, the ones we can not synthesize in our bodies and must obtain from our diet.


Idara poultry farm will tend to collaborate with the major egg dealers and distributors in Abak municipality who will in turn sell it to other dealers both in Abak town and its neighboring L.G.A. And who will in turn sell it to the final consumers. Fatima poultry farm tend to make our product price friendly to promote great sales output and wade off existing competitors.


Prior to the establishment of Idara Poultry Farm, MB poultry farm has being the major distributor of eggs and allied services in Abak L.G.A and its neighboring areas through their quality service and price friendly offers.                            Its goods, which will make it more pronounced name and brand for its market audience, thereby making them a leading firm in egg production and marketing and making its competitors inferior to them.

                         CONSIDERING PRICE POLICY

In as much as we would offer price effective goods, proper details have being given to the cost of production and distribution as well as degree of acceptance by the market. We have also put into consideration pricing structure of our competitors.


Idara poultry farm tends to promote and advertise our products through paid media platforms like the radio stations, television stations, newspapers, online etc. We will create a sales chain, through which our products will be channeled to the buyers, the sales manager would be the one in charge of overseeing that the products gets to the target markets and buyers through the provision of sales outlets that would be managed by sales person.                                                                                        

Bio security measure will be put in place to prevent disease outbreak. Foot bath for visitors and workers will be put in place at the entrance. All quality control standards will be adhered to strictly, so as to produce a world class standard. Proper care would be taken through the provision of quality feeds for the layers, proper medical supervision to wade-off the break of epidemic that constantly plaque poultry in Nigeria and provision of quality service by our workers to make sure our products are a reputable brand. Bio security training will be mandatory given to attendant and other staff.


Key Personnel

Apart from the manager who is the owner of Idara Poultry Farm, the farm is making plans for the future to include the personnel or workers mentioned below:

  • Farm attendants.
  • Cleaners.
  • Security personnel.
  •  Technicians
  • Food technician
  • Administrative staff
  • Veterinary doctors

I as the managing director of the business will only be visiting the poultry site and major sales outlet for routine supervision and assessment. While the chief poultry attendant will live in close proximity to the poultry farm so that proper care and attention will be given to the layers and also for the sake of emergency such as insect attack brooding, and feeding .The sales manager with the assistance of the sales persons goes to the poultry farm to collect the eggs and take them to the marketing outlets to sell to their marketing audience. They will also be provision for a security a personnel watches over the farm day and night for security purposes.


The major material input require for the sources of proposed business are point of   lay, feed (grower mash and layer mash), various kinds of medications when  needed and vaccination according to schedules. The sources of supply of this input are safe, dependable and readily available.

Idara poultry farm plans to utilize vital feed from UAC plc. Because the feeds are of high quality, safe and readily available.

With the consumption of 7tons per month of feed which is the expected requirement for 2400 capacity pantry, poultry will be qualify for 10% discount or prices of feeds from UAC.


Infrastructural cost for start up with 2400 birds.

  • Land -650,000
  • Poultry house -1.7 million
  • Bore hole -150,000
  • Staff house -380,000
  • 20 Units of battery cage -1.8 million
  • Feed to lay -350,000
  • Point of lay birds -2.3 million
  • Utility -40,000

TOTAL -7,370,000


The stocking plan will involve the purchase of 2400 birds which will be placed in the first year of production.  The birds will be purchased at 14weeks to come to lie. They should peak by age, week when they are 17weeks in the farm and spent by. 70weeks and thereafter sold as old layers. Within one month, the spent layers should have been sold out.

The poultry housing system is critical to the success of our poultry farm. The type of poultry housing system focused on will affect how birds are placed identifying productive and unproductive birds and their overall health.

The type of poultry housing system we would like to adopt is the battery cage system. This is a system were the birds are kept in cage and feed on a regular bases. It is a highly organized and effective poultry housing system used in poultry farming. Hence, the birds will have access to feed and water   through and laying rest. The cages are separated into various compartments and also create a perfect environment for laying eggs.

Asides the poultry housing, many facilities and equipment that will make my poultry farm successful are:


  • Drinkers
  • Egg trough
  • Lighting system
  • Nest
  • Crates
  • Incubators
  • Heaters
  • Waste disposal system etc

The bird feeds are the most important things to their survival. Feeding been important to poultry farming account for over 70% of all the total expenditure that would be incurred in our business. Birds will feed adlibitum. Water source is of great important. Water would be managed to ensure that clear and clean is available for birds and adlibitum.

Attendants and manager will get to the poultry house latest 6.30am. Maximum disinfectant and prorate the entrance. Change into work cloth and foot wears, sucked their foot with the disinfectant as well as washing their hands with same. Each nest is observed for sick or discomfort birds. Such animals are the culled and recorded. Water is checked each tip to ensure normal flow. Blocked tips are cleared and replaced. A feed already measured is given to the birds by evenly pouring them into the trough. Eggs are packed from the cage using basket or crates. Number of mortality, number of eggs, abnormal observation on fasces or in the per etc. the eggs now packed in crates would be taken to the store room for onward transport out of the city facility. 10 persons are needed for the start.2 senior managers, 3 operation workers, 3 administratives.

Young birds are feed with high protein diet 20% during the first few weeks of life, and continuously decreases until it reaches approximately 12-15% protein during egg production. Dietary protein and other nutrient requirements will be closely monitored to support maximum egg production.

The salary rate of each worker will be set as follows:

  • Senior managers=40,000
  • Operation staff=20,000
  • Administrative staff=20,000

                     SALES FORECAST

2400 point of lay birds, feeding and medication of the birds and sales of egg and spent layer produced from them in the first one and half year after construction , increasing the number there after 5000 birds in the second year utilizing day old chicks,10000 capacity in the third year and 20000 in the fifth year.

In the first year, at peak production, the farm should produce about 60 crates ( 30 eggs/ crate) per day and generate 1.1million in revenue and about grossly 400000 at gross profit after reduction of cost of feed on monthly basis . spent layers would be sold at the end of one year of lay and utilize in the purchase of replacement birds.

Annual revenue could be up to 16 million naira and gross profit could be up to 4.6 million in the first year. At full capacity, the project ,housing 20000 laying birds would generate up to 70 million naira in revenue and about 17 million on net profit every year.


The projected revenue from the project is mentioned in the sale forecast. In  revenue projection for the first year is about 17.5 million from the sales of eggs and spent layers.

 Cash flow projection

The projected cash flow for the farm could be presented on request. Positive net cash balances are realized at the end of second laying year . From the projection, a farm shows profitability.                                                                                                                           Projected profit and loss

There is no reasonable profit visible in the first year of the project due to huge investment cost but subsequent years recorded reasonable profits.


Table Egg production via the process of raising poultry layer birds from Point of Lay for the purpose of producing table eggs and birds using battery cage system.    Idara Poultry Farm shall be a success. Poultry farming is a highly developed industry. It efficacy and productivity is a product of bringing together of all available industrial facilities, this can never be provided enough by just one individual or company, hence Fatima Poultry Farm plans to collaborate with investors and experts. The industry works effectively as a network with different specialization, bringing in divers input. Also, to avoid overcrowding of ideas and thinning of the limited resources, focus will be on egg production for a long a long time under the supervision of an experienced consulting firm. Success is granted, God being by our side.

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inim kufre
Author: inim kufre

CEO Happy Choice

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