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Agribusiness Training & Startup Tools

How To Start A Poultry Farm In Kerala

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So…you are looking to start a poultry farm business in Kerala State, India?

This is a step-by-step, how-to, practical manual to getting things right.

The format is simple, easy to understand, informative with real-life examples.

What am I offering?…

A 1-page all-inclusive poultry farm business plan for all who live in the beautiful South-Western Indian State of Kerala (Malabar Coast)!

We hope this helps no matter where you are in planning your local or regional poultry enterprise.

Now, for a quick 1-2-3 introduction to what this business plan will do for you…

Kerala Poultry Farming

Image Provided Courtesy Of…  [Free Vectors via Vecteezy!]

1. “How will this guide help me with poultry farming in Kerala?”

If you are living in Kerala and are already involved in poultry farming…this business plan could help you grow or expand.

If you are starting up a poultry farm and still need planning assistance – our advice below is a one-stop shop.

No matter your region, city or town – Thiruvananthapuram, Kochi, Kozhikode, Thrissur, Alappuzha, Kottayam, Palakkad, Changanassery, Kannur, Malappuram, Manjeri, Tellicherry…

…this business plan has go you covered.

We expect this practical guide will:

  1. equip you with the basics on poultry farming
  2. take you from just ideas to successfully trading
  3. show you the techniques involved in getting great results
  4. help you calculate how much profit you can make

…but, we’ll leave you to judge that for yourself.

2) Is this poultry farming business plan suitable for ‘commercial’ or ‘backyard’ operation?

Either, it doesn’t matter.

Whilst scale is contextual, the baseline principles of a poultry farm are entirely transferable and translatable to any scenario.

This in simplicity is the beauty of adopting chicken farming as your next venture.

If you are more on the free-range backyard poultry scale…

  • this plan has simple beginners tips for getting you started.

If your vision is large scale, intensive commercial poultry farming…

  • this plan has the metrics, financial gearing and advanced management topics to satisfy your queries.

3) Is this a plan for layer (egg), broiler (meat) or local breed poultry production?

We cover it all.

Layer, broiler, local breed – complete with distinct pros vs. cons; advantages vs. disadvantages; comparisons and everything you need to confidently choose and verify you plans.

So, without further ado let’s get stuck into the meat and eggs of your plan for poultry farming in Kerala…

Your Comprehensive 1-Page Business Plan To Starting A Poultry Farm In Kerala

So you live in Kerala?…

…here’s some encouragement…

this is a very fortunate location to start your poultry farm!

A diverse southwesterly region of India, benefited by it’s favourable coastal geographic situation – Kerala has long been established as an agri-enterprise hub of South India.

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Famous mostly for it’s black pepper (97% of the nation’s production originate from the state), cashew farming, cereal (…in particular rice production with over 600 genus varieties) the state is known for hosting a very mixed agricultural economy.

FACT: “Nearly half of Kerala’s people depend on agriculture alone for income.” – Wikipedia

The [a] gap between the production and requirement of egg is also increasing at an alarming rate.

Concerted [b] efforts of the State to increase the egg production has began to show signs of improvement.

Egg production which was 1379 Million .Nos in 2007 increased to 1510 M.Nos in 2008 and to 1633 M.Nos. in 2009; an increase of 8 percent over 2008.

Though [c] meat production is increasing over the years, it cannot cater to the demand fully.

– Quote from MSME Development Institute Thrissur

This quote above gives plenty of insight to the real socio-economic factors supporting the growth of poultry farming within the region:

[a] …consumer demand for eggs particularly is increasing and the corresponding supply is insufficient.

[b] …the Government of Kerala State look have a record of favouring the offering of financial subsidy to start-up poultry farmers.

[c] …chicken meat production has been on the increase steadily, but there is still plenty room in the market for new entrants as of 2011.

This confirms it.

Kerala State is awaiting your brave new venture into poultry production – the market needs what you have to offer!

The Basics On Running A Poultry Farm In Kerala

As with deriving a liveable income from any agribusiness, poultry farming takes real commitment.

Even before launch you’ll need to engage in much prerequisite preparation to ensure best efforts for success.

Below, we have put together a comprehensive round-up of things to think about prior to starting a poultry farm:

“What Does It Take To Run A Successful Poultry Farm In Kerala?”

Business start-up has to be one of the most trialling and rigorous endeavours known to modern man.

Whilst the superficial glamour of media presented ‘entrepreneur-ism’ gives an allure of ease and lifestyle…

…the truth of hard graft, labour, frustration and testing at times often is the last thought in our minds.

If ill-prepared, there will be failure and loss.

Starting up a business from scratch is hard and poultry farming has it’s own unique challenges.

However, the fruits can be greatly rewarding (!) – and for a long time to come.

We don’t exclude this from anyone willing to hope and strive for success – faithfully.

Know one thing, if you are prepared to give it EVERYTHING you’ve got – make the sacrifice – you should not be disappointed.

Learning resources for running a poultry farm in Kerala:

“Can I Start A Small Budget Poultry Farm In Kerala & Grow Slowly, But Surely?”

Yes.

Operating within your means is the prudent way to do business.

Exceed this to accrue debt, means you run the risk of destabilising your enterprise before you get started.

Poultry farming on a budget is certainly feasible within Kerala State.

Even despite the downward pressures of price fluctuation and neighbouring state (Tamil Nadu) competition – there is arguably more reason than ever to get involved and make a difference.

One of the great things about starting a poultry farm, is scale-ability.

This means even at the smallest levels, you can still produce enough to suffice many local families – and get your confidence.

Once in full flight with plenty experience under your belt, you can add capacity to your set-up simply by extending the poultry housing & getting more feeder/drinkers.

Compounding gains are also another advantage to poultry farming.

Even one additional bird, for laying farms or chicken meat farms present addition output and proportionally chips away at your overheads.

In short, the consensus advice among professionals is get your feet wet with a small-scale, easily manageable operation.

Learn the basics whilst taking on little risk by starting small and therefore, by virtue, lower your risk as you grow your production.

Learning resources for starting a poultry farm on a budget in Kerala:

“Can A Household or Family Take Up Successful Poultry Farming In Kerala?”

Yes.

Households are the primary source (and obvious choice) of any nation’s labour for small-scale poultry farming.

The benefits of household labour coming together to serve in micro farming gives great socio-economic growth potential to a region.

The future prospects of Kerala would be all the more improved if families, much like yours :), got involved in taking ownership over the productivity.

Learning resources for family run poultry farming in Kerala:

“Where Can I Go To Get Reliable Poultry Farm Training In Kerala?”

There are plenty of formal learning courses to attend across Kerala State for poultry farming.

Some courses offering officially recognised accreditation upon completion, others giving more grassroots introduction.

Either way, see training as an investment.

If you are seeking to front a more commercial sized set-up then perhaps some officially recognised qualifications could help.

If a small-sized backyard (yet serious) operation is what you have in mind, then a workshop might be a better investment.

Resources for poultry farm training in Kerala:

“Is It A Good Idea To Visit Some Model Examples of Local Poultry Farms First?”

Yes.

A good example goes a long way to helping in the future successes of those who will listen and learn.

Why not make a quick list of local established poultry farms…

call them up…

and get visiting your peers to compare notes?

Here’s a headstart…(enjoy!)

Resources for model examples poultry farming in Kerala State, India:

“Which Videos Do You Recommend For A More Visual Approach To Learning?”

Here are links we have curated which host a number of useful videos teaching the many factors relating to local poultry farming – all examples of course, based in Kerala!

Feel free to suggest others, should we have missed any good ones…

Resources for visual learning aids to poultry farming in Kerala:

Researching The Poultry Market In Kerala

Before starting your poultry business in Kerala, you’ll want to be assured of how the poultry market behaves.

Factors affecting the ‘prevailing economic winds’, as it were, are a keen foundation of understanding.

Research bears the brunt of the early start-up work load.

You’ll no doubt spend hours, days and weeks at your desk turning over your ideas, thoughts, concerns and hopes on paper, before eventually taking the plunge.

We hope with the points below give you a leg-up and added endurance for the road ahead…

Some tabulated facts on the poultry industry in Kerala

All data researched and originally sourced by Deepa Menon, Assistant Professor (Published on Slideshare)

Kerala Poultry Industry In Summary

Product Demand Production % Gap
Egg 5,063 million per year 1,196 million per year 77% Gap
Meat 120,000 tonnes per year 32,704 tonnes per year 73% Gap

Per-Capita Poultry Product Consumption – Kerala

Product Recommended Actual % Gap
Egg 180 eggs/year 72 eggs/year 60% Gap
Meat 11 kg/year (total meat) 0.9 kg/year (poultry only) *92% Gap

(* = assuming that poultry was the only meat eaten)

Top 4 Reasons For Decline Of Poultry Industry In Kerala

# Why Is Poultry Production & Demand So Disparate In Kerala?
1 Poor Use, Allocation and Availability Of Land
2 Higher Costs of Commercial Feed
3 Low Availability of Quality Chicks
4 Higher VAT on Chicken

Top Policy Suggestions For Correcting The Lack Of Quality Poultry Products In Kerala

# How Can Local Government Improve Kerala’s Poultry Problem?
1 Provide Ring-Fenced Allocation of Land For Poultry Enterprise
2 Encourage & Strengthen Backyard Production
3 Invest In Low-Cost Alternative Feed Research
4 Reduce Taxation on Poultry Products

Price of Poultry Products In Kerala (As Of Jan 2019)

# Product Name Rate
1 Parent Meat Rs.141.48
2 Broiler Chicken without Skin Rs.152.84
3 Broiler Chicken with Skin Rs.150.00
4 Broiler Chicken (Special Curry Cut) Rs.175.00
5 Organic Chicken Rs.196.51
6 Janatha Chicken Rs.78.60
7 Liver & Gizzard Rs.80.00
8 Drum Stick Rs.235.81
9 Boneless Breast Rs.259.39
10 Thigh Rs.235.81
11 Marinated Chicken Rs.133.00
12 Chicken Cutlet Rs.64.00
13 Broiler Chicken (Curry Cut) Rs.158.00
14 Broiler Chicken [Pre-Cut] Rs.155.46

Available Native Breeds Of Layer & Comparative Outputs

Breed Eggs (Annual) Feed (per day)
Gramalakshmi 180-200 Scavenging + 20-30g balanced layer ration
Gramasree 190-200 Scavenging + 20-30g balanced layer ration
Gramapriya 200-225 Scavenging + 20-30g balanced layer ration
Athulya 300 110-120g layer ration

That’s the round-up on the facts of the poultry (chicken) trade in Kerala.

Choosing The Right Type Of Poultry Farm To Start In Kerala…

As seen in our opening introductory chapter, both eggs and chicken meat are in great and growing demand across Kerala State.

Both retail/hospitality institutions and households are fast consuming through vast amounts of this high-protein food source.

As for layer, broiler or local breed farming…the choice is yours.

Each done well, offers their own unique benefits and trading expectations.

Let’s take each on it’s merits…

Broiler vs. Layer poultry production…which should I choose?

Ultimately it comes down to suitability and sustainability.

In other words, which type will best suit your circumstances, enabling you to keep it going at a profit?

A quick intro shows the following comparative breakdown:

A quick and simple layer farming overview

  1. Layer hens (female) lay eggs – this is the primary output of a layer farm.
  2. The female birds – aka. hens – only (…of course) lay the eggs.
  3. Each breed of specialist laying hen has it’s own egg production profile, when maintained/reared under optimal conditions – egg characteristics are as such:
    • colour
    • size
    • weight
    • shape
    • quality
    • nutritional balance
    • quantity
  4. Each breed also converts feed in its own unique manner and therefore produces its own efficiencies
  5. Egg quality is largely affected by the hen’s availability to ample: feed, water, light, warmth, medicine
  6. Layer farms typically buy layer hens (sexed – identified as female only) at 1 day old
  7. They are immediately accepted at this early life stage into a brooder house
  8. Brooder houses are especially equipped to grow brooders to 8 weeks old
  9. Brooders chicks at 9 weeks old, officially enter a new life stage know as Grower
  10. Growers are typically accommodated in their own poultry house until they reach physical maturity (20 weeks)
  11. At 20 weeks the birds officially become mature laying birds and begin the early cycle of their laying life
  12. At 72 weeks of age laying birds are no longer commercially viable, due to reduction in egg production – their meat is sold (‘cull’ or ‘spent’ hens) at discounted rate in comparison to broiler meat

A quick and simple broiler (chicken meat) farming overview

  1. Broiler chickens (which are raised for meat) can be either male or female
  2. Broiler birds are typically bought by broiler farm owners as 1 day old chicks
  3. They are reared to a market ready weight (1.5-2.5 kg), usually between the age of 6-7 weeks (42-49 days old)
  4. Broiler birds are sold according to a LIVE weight
  5. The price of broiler birds is typically given at market by kilogram
  6. Feed consumption is one of the most important factors affecting return on investment
  7. If feed conversion is low, or target weight is achieved late – farm profits are impacted
  8. If birds suffer any stress on their way to market, they can lose valuable weight

Whilst this is not, all you need to know about layer and broiler poultry farming, the aim of the summary above was simply to get you started.

Regarding business, the key take home points are these:

  • …timings – production intervals are set. You can’t get around, nor rush them. This largely dictates your business cash flow expectations.
    • e.g. from 1st batch of day old chicks to 1st trip to market
      • broiler = 6-7 weeks wait
      • layer = 72 days wait
      • …that being said, it is possible to buy ready to lay hens, or market weight broilers, BUT – the cost of these is prohibitive to profit (…the breeder requires recompensing for rearing time & resources used otherwise avoided if sold as day old chicks)
  • …target output – reaching target weight or optimum egg laying frequency/quality is what your profit (earnings) expectations are built upon. This output of production is directly correlating with rearing conditions…i.e. feed, water, ventilation etc. – cut corners with input and you short change your output.
  • …capacity planning – depending on your preferred business model, you might want to set your expectations on a certain multiple of batches reared at a time, leaving convenient intervals for moving flocks between housing. In this way you can calibrate your farm system to bring a certain regularity of product deliveries to market…e.g. weekly meat deliveries rather than every 6-7 weeks.

For further information on layer farming and broiler farming, read the following resources:

Writing A Project Report for Your Poultry Farm In Kerala

A project report for your poultry farm start-up in Kerala is a critical piece in the preparatory business puzzle.

In many ways it is the key to opening up your prospects for finding the right investors, funding or indeed commercial partners, if this is your idea.

It’s purpose is to focus the eyes of the reader upon the technical and financial gearing of your planned operation.

Your project report should tell interested parties clearly, why and how much they ought to invest and what they can expect and when.

It’s a high-level business sales proposal.

Attractiveness is the key here.

Knowing what your audience of investors look for in a prospect and showing the benefits of you plan.

For a more in-depth understanding of a poultry farm economic analysis, visit this guide.

So now, let’s go through an example outline project report:
Kerala Poultry Farming Project Report
[Please note: the following project report details are entirely fictitious and only shared for illustrative purposes to assist with learning.]

Welcome to Kerala Egg Co.!

Hi, my name is Sridhar Gupta – founder and CEO of Kerala Egg Co.

Our management team of experienced poultry professionals and consultants plan to launch a new semi-intensive, integrated layer poultry farming operation.

Through this endeavour, we hope to restore a much needed advantage to state based poultry production, which for your years has been under pressure from increasing costs and out of state competition.

The resulting economic trend has lead to ever decreasing profits…and a depressed local poultry trade.

With the enclosed plan we plan to combat the adverse economic trends with keen business management, deriving excellent product quality and affordability.

We hope to generate over 80 jobs for the local Kerala State communities providing much needed gainful labour for households in such challenging financial times.

We welcome you to view our project report and consider this an invitation to consider financially assisting the start-up of this much needed layer poultry farm.

Thanks in advance for your consideration.

Yours sincerely,

Mr. Sridhar Gupta and Associates.

Kerala Egg Co.

Kerala, Malappuram District.

Type of Poultry Farm

“…this proposal is for an intensive layer poultry farm in Kerala State, Malappuram district. We hope to acquire an advantageous plot of land to lease & a poultry farm licence in Kerala to host the farm – one which accommodates our planned capacity…”

Poultry Farm Capacity

“…the proposed capacity of this layer farm is 10,000 laying hens….”

Layer Rearing System & Batch Size

“…the model of rearing which we will adopt throughout this plan is 1+1+5 with purchases of 2,000 day old chicks as one batch…”

Interval

“…according to the standard FAO rearing guidelines for layer poultry farms in South Asia, our interval of day old chick batch purchase from local Hitch-Hatch Hatcheries in Kerala will be every 12 weeks…”

Recurring Annual Poultry Farm Overheads

“…our proposed layer farm overheads are as follows:…”

Cost Item Amount in Rs.
Medicines & Vet 16800
Livestock Insurance 24276
Building Insurance 50000
Electricity 120000
Water Rates 100000
Labour 37440
Transport 124800
Maintenance 1000
Miscellaneous 1000
TOTAL 475316

Annual Cost of Rearing Chicks

“…our calculated costs of rearing layer chicks are as follows:…”

Cost Item Amount in Rs.
Chicks Per Batch 336000
Cost Of Feed Per Batch 7668800
TOTAL 8004800

One Off Capital Purchases

“…our one off capital purchases are as follows:…”

Cost Item Amount in Rs.
Land 2650000
Poultry Housing 3500000
Civil Buildings 350800
Electricity 60000
Water Installation 60000
Store Rooms 520000
Feeders & Drinkers 174720
Cages 940056
Infrastructure 180000
TOTAL 8435576

Farm Production

“…these figures represent our expected income gained from layer egg sales over the first 6 years of the project, alongside residual income streams from poultry by-products…”

 Egg Production (Kerala Egg Co. – 6 Year Projected Income)

  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Egg Sales 660100 2472960 2573480 2558220 2557800 2573480
Egg Revenue (in Rs.) 2640400 9891840 10293920 10232880 10231200 10293920
Laying Weeks 60 216 288 224 224 288
Batch Size 2000 2000 2000 2000 2000 2000

Spent Hen Production (Kerala Egg Co. – 6 Year Projected Income)

  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Spent Hen Sales 0 6000 8000 8000 10000 8000
Spent Hen Revenue (Rs.) 0 180000 240000 240000 300000 240000

Chicken Manure Production (Kerala Egg Co. – 6 Year Projected Income)

  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Manure Sales (Lbs.) 282240 282240 282240 282240 282240 282240
Manure Revenue (in Rs.) 931392 931392 931392 931392 931392 931392

Income Statement

“…this table represents interprets the profit to be made from this layer enterprise as derived from  income vs. expenditure…”

  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
INCOME            
Sale of eggs 2640400 9891840 10293920 10232880 10231200 10293920
Sales of spent hens 0 180000 240000 300000 240000 240000
Sale of gunny bags 10000 10000 10000 10000 10000 10000
Sale of manure 931392 931392 931392 931392 931392 931392
Depreciation on equipt. 0 0 0 0 0 8000
Depreciation on buildings 0 0 0 0 0 15000
TOTAL Income 3581792 11013232 11475312 11474272 11412592 11498312
EXPENSES            
Cost of day old chicks 336000 336000 336000 336000 336000 336000
Cost of feeds for birds 7668800 7668800 7668800 7668800 7668800 7668800
Cost of operational labour 37440 37440 37440 37440 37440 37440
Utilities, Medicine, Insurance 437876 437876 437876 437876 437876 437876
TOTAL Expenses 8480116 8480116 8480116 8480116 8480116 8480116
GROSS PROFIT -4898324 2533116 2995196 2994156 2932476 3018196

BCR

“…the benefit cost ratio  of this project is 1.13 making it a favourable choice of investment above and beyond alternative opportunities of 15% interest rate…”

This project report example provides an outline – in likeness – to what yours might contain – taking into account scale, scope & systems adopted.

***If you want to easily produce your own professional standard, project report – complete with calculations & metrics – click here to view our PDF Project Report Generator.***

We hope this helps you get an idea of how it works.

Seeking Funding For Your Poultry Farm In Kerala

Funding is critical to the success of starting up your poultry farm.

Kerala has it’s own array of agri-financing options for all types of scale of poultry enterprise.

But before we dig deep into what’s on offer locally, we’re going to define the typical options available for funding your start-up:

Starting Up Your Poultry Farm With Personal Savings & Income

By far, the best option among the lot – if you can afford it!

Personally funding your poultry farm allows you to grow organically as it were.

Redundancy pay out, planned career change, pension

…whatever the means…gather it together and calculate your ability to implement a start-up plan.

Without the false influx of borrowed finance, which places you in deficit before you even start.

Better than leveraging risk, is to cover the deal entirely yourself.

Sure it takes money directly out of your pocket, but better out of yours than someones else’s…unless you find yourself being in theirs!

Consider: ownership, sovereignty, default, liberty…

…carefully consider.

Contract Poultry Farming

This is strictly for the experienced poultry farmer.

Contract poultry farming is a commercial scale arrangement between an ‘integrator’ and farmer.

The exchange is simple.

The ‘integrator’ provides: stock and supplements…

  • …extension advisory services (EAS), chicks, feed, medicines and vaccines.

The ‘farmer’ provides: operational muscle…

  • …labour, shed, electricity, water, litter material, equipment and miscellaneous services

They meet in the middle on the basis of performance.

The integrator uses commercial leverage to make room for an experienced farm operator with a track record to prosper.

The recompense which the farmer receives for their efforts is called the ‘rearing charge’ – dependent entirely upon delivering the results.

The integrator spreads their risk across many farm operations and thus nullifies issues such as overcrowding and disease.

It works well for the right parties and offers security going alone simple cannot grant.

Government Subsidy For Poultry Farm Start-Up In Kerala

State governments across India are offering increasing amounts of financial subsidy to support and stimulate the starting up of micro-agricultural business.

In Kerala, the Department of Agriculture Development & Farmer’s Welfare is the principal steward for…”subsidy disbursal to farmers through various schemes implemented by Department.“

For further information on what their policies and procedures are for potential financial support of your poultry farming plans, either:

  1. Click this link, Or…contact directly at…
  2.   Vikas Bhavan, Thiruvananthapuram-695 033, Kerala, India.

Bank Loan Or Private Investment For Poultry Farm Business Start-Up

Getting the support of private investment is another route of acquiring the necessary financial impetus to get started.

In Kerala, the key finance partners for agri-businesses of all sizes are typically are Kerala Gramin Bank.

For information on their financial loan products, visit this page: Agri Term Loans – For Capital Investment in Agriculture Sector

Making The Decision On How To Fund Your Poultry Farm…

Funding a capital project and ownership are inextricably linked.

That is to say, those who fund also own.

As for the proportion of ownership, that is a matter of negotiation.

But it is important to note that the owners of the project, also own the fruits (profit).

Again, the proportion is really up for grabs at the negotiation table.

The ideal situation for optimal rewards, therefore is to fund the project personally.

But where your plans require assistance and external investment seems the only option…

approach with caution…

carefully and prudently weigh-up the gains in feasibility against the losses in sovereignty and control.

Pulling Together Your Poultry Farming Business & Feasibility Plan For Kerala

The business plan or feasibility plan for your poultry farm is a step-by-step outline of action.

It adds the meat onto the bone of your project report.

According to its name, the plan declares how feasible or rather probable it is that your projections might be achieved.

This business plan should comprehensively prove the diligence with which the author has thought through their eventual action.

As a document, it is pivotal to giving confidence to assessors of your proposal.

Following are key components of your poultry farming business plan:

1. Land

Land acquisition for you farm is critical to the plan being a success – we hope the following helps put this in perspective for you:

  • Plot:
    • …having ample room & conducive features to accommodate your proposed plans
    • …consider access to the land for receiving deliveries of chicks and shipping out product to market
    • …improvements for vehicular access or optimal positioning of buildings & amenities
      • rainfall
      • climate
      • run-off
      • aspect
      • slope/gradient
      • size
      • proximity to market & suppliers
    • Useful references for agricultural land acquisition for poultry farm in Kerala:

Buildings

Typically, the following are building requirements for poultry farms of various sizes:

  • Poultry Housing:
  • Civil Buildings:
  • Storage Buildings:
    • …according to flock size and diversity of feed required to suffice the various cohorts at each growth stage, plan feed storage
    • …calculate the water requirement of your poultry farm, again, according to capacity – remembering high water consumption by birds during hotter months
    • …medicines will require storage in cool, dark building with relevant temperature control systems
    • …if you chosen farm is a layer operation, then a store for eggs whilst they are being prepared for market will also be required
    • …manure storage is also necessary for preparing it to re-sell as fertiliser on the open market
      • feed store/grain silo
      • water store
      • medicines store
      • egg store
      • manure storage
    • Useful references for agricultural storage buildings:

Poultry Farm Staffing & Labour

Getting the right staff labour to support your commercial goals is critical to making a profitable enterprise:

  • Roles & Responsibilities:
    • …your farm manager has overall responsibility of delivering the output results of the farm and all within the allocated budget of inputs
    • …farm caretakers are responsible for keeping all buildings and equipment operating at optimal level – any problems they and their team will remedy repair or replacement
    • …farm supervisors oversee the teams who care out the operational work
    • …farm hands are those men who perform the necessary hand on labour required to fulfil the goals of the enterprise
      • farm owner
      • farm manager
      • farm supervisor
      • farm administrator
      • farm hand
      • farm caretaker
    • Useful references for further reading on poultry farm labour:
  • Recruitment:
    • …getting the right staff on hand to fulfil the work of your poultry farm is key to success
    • …scope the necessary roles, responsibilities and numbers of personnel for your plan
    • …ensure ample staff coverage, inclusive of time off allocated for annual leave etc.
      • job boards
      • agri-recruitment agencies
    • Useful references for further reading on farm labour recruitment:
  • Agri-Entrepreneurship Training:
    • …there’s often no better type of training than hands-on practical demonstration
    • …entrepreneurship workshops, seminars and technical demonstrations are a great local resource
    • …find local programs which have derived the kind of results you seek and examine their approach for pointers
      • agripreneur programs
      • workshops
      • schemes
    • Useful references for further reading on agri-entrepreneurship training in Kerala:

Procurement

Making the right purchases with the right supply partners makes for a buoyant farming business:

  • Feeders
    • …feeders do the important job of distributing the necessary bird feed throughout your flock
    • …according to FAO regulations each feeder ought to allow the appropriate amount of space to each bird
    • …feeders get used time and time again from one batch to another, acquiring a robust product ensures longevity – saving on replacements
      • price
      • size
      • deals
    • Useful references for further reading on poultry feeder manufacturers in Kerala:
  • Drinkers
    • …drinkers water your flock and keep them hydrated and at optimal health for either laying or gaining weight
    • …adjustable height drinkers are mandatory for the purpose of making adjustments to accommodate the growth of your birds
      • price
      • size
      • deals
    • Useful reference for further reading on poultry drinker manufacturers in Kerala:
  • Feed
    • …this is THE critical influence to both of your farm output quality & cost of sale
    • …getting the optimal mix of feed for all growth stages of bird greatly improves your chances of rendering a profit
    • …supplements are also required to combat disease and to give the birds the opportunity to give you back the best
      • grain
      • pellets
      • fortified
      • vitamins
      • minerals
    • Useful references for further reading on poultry feed manufacturers in Kerala:
  • Incinerators
    • …poultry farming encounters bird mortality regularly and as such safe disposal of waste is essential to maintaining healthy standards on your farm
    • …poultry incineration must be performed to safety standards to ensure the best results for your business
    • …finding a reliable incinerator manufacturer is a key acquisition
      • quick
      • smoke-free
      • easy installation
      • responsive maintenance services
    • Useful reference for poultry incinerator manufacturers in Kerala:
  • Stock:
    • …day old chicks are the life of your poultry farm, they are the precious units of productivity upon which your profits lay
    • …ensure quality, quantity and cost efficiency when making arrangements for sourcing
    • …credible and amenable suppliers are key to sustainable poultry profits
      • quality of product
      • breed availability
      • service levels
      • cost
    • Useful references for further reading on poultry hatcheries in Kerala:

Scheduling, Production & Capacity Management for Poultry Farms

Scheduling inputs properly keeps outputs also consistent. Handling these metrics diligently will ensure you are on track for achieving those results set out in your project report.

  • Capacity:
    • …deciding on the overall capacity of the farm will provide scope – which is the determinant for all other issues, such as rearing system, input and output
    • …accounting for bird mortality is also prudent to maintaining capacity – remembering that the overall number of viable units for market (whether eggs, or LIVE/dressed birds) is dependant upon a consistent flock size
      • overall optimal production
      • mortality
    • Useful references for further reading on poultry capacity planning & bird mortality:
  • Rearing System:
    • …whilst overall capacity is one thing, it’s the gearing of your rearing system which provide the much needed torque for your production engine
    • …taking advice on the most manageable, yet profitable – and therefore optimal set-up is imperative before you settle on any particular approach
      • typical layer poultry systems = 1+2 / 1+3 / 1+1+5
        • …the first number indicating a brooder cum grower house (1 day old – 20 week old birds)
        • …the middle number (where applicable) indicating a grower house (9-20 week old birds)
        • …the third number being a layer house (21-72 week old birds)
        • …add these numbers together and the result is the total number of poultry houses required (albeit of varying dimensions to suit the age of bird)
      • typical broiler poultry systems = multiple batch 4+1 / multiple batch 8+1 / All-In-All-Out
        • …the first number indicating the number of brooder/grower houses, each accommodating a batch of birds
        • …the second number indicating the number of finishing houses for market ready birds
        • …add these numbers together and the result is the total number of poultry houses required (albeit of varying dimensions to suit the age of bird)
    • Useful references for further reading on poultry farming rearing systems:
  • Poultry Farming Input Planning:
    • …making sure the right type and quantity of feed for each age/batch of bird bought is critical to the success of your farm
    • …planning this meticulously, down to the last grain or pellet will keep you thinking and acting ahead of the curve
      • dependent upon rearing system
      • based upon the recommended amounts and nutritional balances
      • ordered, received and stored in a timely and appropriate fashion
      • remembering that each rearing system has its own intervals and fluctuations in flock size and make up during any particular 12 months period
    • Useful references for further reading about poultry farming input planning:
  • Poultry Farming Output/Production Planning:

Marketing & Sales Strategy

Successful marketing strategy is your ticket for converting hard agricultural graft and consistent output into a steady influx of sales revenue.

  • Branding:
    • …distinction among the background noise of the market gives your business both a voice and an audience, which is critical to breaking through from launch
    • …a clear business identity which conveys your value proposition (i.e. what you are offering which is worth the time and investment of your customer) is key to getting noticed
      • logo
      • brand name
      • brand graphics
      • tag line
    • Useful references for further reading on agricultural branding:
  • Public Relations:
    • …presenting your farm and it’s mission
    • …show you & your staff in a personable, approachable and natural manner will go a long way to connect your business to it’s audience
    • …multimedia done well and tastefully can add long term value to the market presence of your business
    • …transparency is key – showing what you do, how your do it and explaining why, is real brand equity building stuff.
      • declare the mission of the business
      • showcase the heart
      • use multiple media format to make reach go further
    • Useful references for further reading on Kerala poultry farm PR:
  • Collaborative Vertical Marketing:
    • …your market vertical is an ecosystem of sorts within which participants are all interdependent upon one another for collective success – yes, even peers! (…we don’t use the word competition…there’s more than enough for us all to survive – let’s help one another rather than fight for scraps)
    • …if each participant does well and helps its neighbours, even peers, then the whole market prospers
    • …the idea here is to become your market’s most valuable (and therefore valued!) participant, by seeking the betterment of those around
    • …do your due-diligence to find out what your fellow participants value, or what would help them get greater value from the market – and simply try to serve them in these areas
    • …the more value you add, the more valued your business becomes
      • ID participants within your market
      • Survey their business or consumer needs
      • Plan how you might deliver on adding value in those critical areas
      • Begin campaigning to plug in the gaps for your fellow participants
    • Useful references for further material on agri collaborative vertical marketing:
  • Online:
    • …harnessing the thrust of the internet’s populous reach for the advancing of your poultry business plans will be a prudent move
    • …Kerala ranked 3rd throughout the whole of India for volume of e-transactions over the internet
    • …State of Kerala has a higher than average adoption per 100 capita eCommere
    • …with over 30 million mobile connections for 33 million population,
    • …34.71 internet connections for every 100 individuals in Kerala & growing – the scope and trend for eCommerce among Keralites is vastly on the increase
    • …setting up a well developed ‘e-farm shop’ for online promotion & sales of both retail and wholesale poultry quantities should work very well to your advantage
      • eCommerce
      • retail & wholesale offers
      • local supplier searches via search engines
      • social media to amplify promotions
    • Useful references for further reading on use of the internet and online marketing in Kerala:
  • Deliveries:
  • Egg Vending Machine (City Location & Farm Gate Sales):
    • …would an egg vending machine really take off in Kerala?
    • …why not? It seems to work in Japan – take a look:
      • secure
      • convenient
      • cost effective sales & distribution
    • Useful references for further reading on setting up an egg vending machine:
  • B2B Wholesale Poultry Sales:
    • …selling eggs and meat to upstream retailers and institutions is a sure way of securing regular cash flow streams for your poultry business
    • …whilst many retail buyers request credit accounts, other don’t and will pay on delivery – consider which would work best for your model
    • …successful relationship marketing (account management) will keep up your profits and orders – stay in communication – help buyers add value downstream!
      • direct marketing to local businesses and organisations
      • ID buyers and approach
      • presentation goes a long way
      • remain top of mind for optimal sales
      • many local hospitality owners will favour a local supplier
    • Useful references for further reading on B2B poultry sales:

Financial Statement

The financial statement of your poultry farming business plan neatly pulls together all of your business figures into the most meaningful array.

  • Cash Flow Statement:
    • …this statement declares the running cash position of your poultry business, taking into account current balances on hand
    • …it is a literal telling of how the money your business handles – incoming flows against outgoings (whether in cash form, e-trade or otherwise)
      • balance brought forward
      • income
      • expenses
      • net cash position
    • Useful references for further reading on poultry farming cash flow:
  • Income Statement:
    • …a summary of your income vs. outgoings for your poultry farm
    • …otherwise known as a profit/loss statement – it does exactly that – it informs on the net position of profit or loss your business is in
      • income
      • expenses
      • net profit (loss)
    • Useful references for further reading on poultry farming income statement:
  • Balance Sheet:
    • …otherwise known as, Farm Equity Statement, this is a trade-off between assets (value generating items – like machinery) and liabilities (value losing items – like debts)
    • …this statement lays out just how well the underlying holdings of your poultry business grants financial stability – or not.
      • assets
      • liabilities
      • deprecation
    • Useful references for further reading on poultry farm balance sheet:
  • Break Even Analysis:
    • …how many birds or eggs would you need to sell as a minimum in order to cover your costs alone?
    • …once you have this figure, you know where your profits begin
    • …a sound indicator for setting your boundaries for setting sales and marketing targets
      • Sales (Rupees)
      • Total Variable Cost (Rupees)
      • Total Fixed Cost (Rupees)
      • Installed Capacity (Birds)
      • Quantity Produced (Eggs or Birds)
      • Unit Price (Rs.)
      • Farm Capacity Utilised (%)
    • Useful references for further reading on break-even analysis for poultry farms:
  • Investment Ratios:
    • …these are indicative financial figures which give insight to the overall performance of your poultry farm
    • …they help you see how the finance professionals i.e. bankers and investors see the health of your business
    • …getting funding for start-up or expansion will largely depend on the buoyancy of these figures – not discounting the detail of your overall business plan, of course
      • ‘BCR’ – Benefit Cost Ratio
      • ‘IRR’ – Internal Rate of Return
      • ‘NPV’ – Net Present Vale etc…
    • Useful references for further reading on investment indicators for poultry farms:

Start-Up Schedule

Devising a schedule for start-up will provide oversight regarding the steps needed to go from ‘zero-to-full throttle’ production and sales with your poultry business

  • Milestones:
    • …laying out the scheduling of important prerequisites will focus the minds of all involved on the early critical success factors
    • …timings are key early on – you’ll want to stay on track and establish sound expectations, so produce a Gantt chart to outline phased transition
    • …keep estimates conservative in order not to lose confidence and fall short
      • key start-up prerequisites
      • accurate timings
      • outline assumptions, constraints and risks involved
    • Useful references for further reading on planning a start-up schedule for a poultry farm:

Managing Your Poultry Farm

Once operational, keeping your poultry farm on track for achieving it’s commercial goals will take keen management.

Providing key indicators for success at your fingertips begins with diligence data gathering and record keeping.

Putting such systems in place early will help you keep tabs and enforce sound governance throughout.

Data Collection & Record Keeping For Poultry Farm

Accurate source data is the backbone of any successful managerial decision making. Build into your business systems for getting your finger on the pulse of performance.

  • Poultry Farm Data Collection & Record Keeping:
    • …input and output data comparisons give a good feel for how you are doing against projected optimal yield
    • …plotting data in graphs give visual snapshot of where you can tighten things up in operation to achieve better overall results
    • …indicators like layer hen-day production or broiler weight gain periodically give advanced notice of potential under-achievement prior to market
    • …training dedicated staff members will keep your accuracy and updates consistent
    • …use technology for advantage e.g. bar code reading systems, SQL databases or web application
      • named individuals responsible for
      • routinised data collection
      • database pooling
      • data analysis
      • reporting
      • support of managerial decision making
    • Useful references for further reading on data collection and analysis for poultry farms:

Expanding Your Poultry Farm in Kerala

Expansion.

It’s a natural phase of business growth.

  • How much should you grow your farm?
  • What methods of growth would be most sustainable?
  • Should you diversify e.g. local or speciality breeds?

These are all questions which bring us neatly back again to the beginning of this guide research, consider, plan…

simply rinse and repeat for best results.

Got it? Good.

And Finally…

Kerala State poultry industry awaits your entrance.

Perhaps even the rest of India!

Need a helping hand drafting a winning poultry farming project plan?

Feel free to ask us.

Need FREE poultry farming advice? Get in touch.

Have anything to add which we missed out?

Or…

want your business to appear in this page?

simply leave us a comment below and we’ll get back to you.

But for now…

Thank you for reading – and we hope your new venture into poultry farming entrepreneurship in Kerala gets off to a flying start.

– The Big Book Project Team

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Comments

  1. Thanks for your valuable advice and all good suggestions available to support organic farming ,expecting more from your side related to agriculture

    Reply

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