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.
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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:
...but, we'll leave you to judge that for yourself.
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.
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 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 the it's favourable coastal geographic situation - Kerala has long been established as an agri-enterprise hub of South India.
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!
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:
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:
- Factors Favouring Kerala Chicken Above Tamil Nadu Chicken - The Financial Express
- Growing Self-Sufficiency Trend In Kerala - PRI.Org
- Drivers Of The Price Of Chicken Within Kerala - The New Indian Express
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:
- A Guide To Backyard Poultry Farming In Kerala - Dr. Irshad A
- When Harvest Fails, Backyard Poultry Farming Steps In - The Hindu Times
- Pictures of Backyard Chicken Farming In Kerala - Facebook Page Sandesh One Kerala
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:
- Local Agri-Minister Encourages Every Family In Kerala To Begin Poultry Farming - The Hindu Times
- Survey On Poultry Production In Kerala Villages - The Cambridge University Press
- Strategic Interventions For Family-Run Poultry Farming In Communities - FAO
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:
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:
- Poultry Farm Award Winner Interview - Youtube Video
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:
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...
|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|
|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)
|#||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|
|#||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|
|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|
|7||Liver & Gizzard||Rs.80.00|
|13||Broiler Chicken (Curry Cut)||Rs.158.00|
|14||Broiler Chicken [Pre-Cut]||Rs.155.46|
|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.
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...
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
- Layer hens (female) lay eggs - this is the primary output of a layer farm.
- The female birds - aka. hens - only (...of course) lay the eggs.
- Each breed of specialist laying hen has it's own egg production profile, when maintained/reared under optimal conditions - egg characteristics are as such:
- nutritional balance
- Each breed also converts feed in its own unique manner and therefore produces its own efficiencies
- Egg quality is largely affected by the hen's availability to ample: feed, water, light, warmth, medicine
- Layer farms typically buy layer hens (sexed - identified as female only) at 1 day old
- They are immediately accepted at this early life stage into a brooder house
- Brooder houses are especially equipped to grow brooders to 8 weeks old
- Brooders chicks at 9 weeks old, officially enter a new life stage know as Grower
- Growers are typically accommodated in their own poultry house until they reach physical maturity (20 weeks)
- At 20 weeks the birds officially become mature laying birds and begin the early cycle of their laying life
- 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
- Broiler chickens (which are raised for meat) can be either male or female
- Broiler birds are typically bought by broiler farm owners as 1 day old chicks
- 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)
- Broiler birds are sold according to a LIVE weight
- The price of broiler birds is typically given at market by kilogram
- Feed consumption is one of the most important factors affecting return on investment
- If feed conversion is low, or target weight is achieved late - farm profits are impacted
- 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:
For further information on layer farming and broiler farming, read the following resources:
- Everything You Need to Know About Raising Broiler Chickens - Michael J. Darre Ph.D
- Egg Marketing: A Guide for the Production and Sale of Eggs - FAO Rome 2003
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:
[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.
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..."
"...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
"...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
"...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
"...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.
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:
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...
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...
The 'farmer' provides: operational muscle...
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.
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:
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
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.
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:
Land acquisition for you farm is critical to the plan being a success - we hope the following helps put this in perspective for you:
Typically, the following are building requirements for poultry farms of various sizes:
Getting the right staff labour to support your commercial goals is critical to making a profitable enterprise:
Making the right purchases with the right supply partners makes for a buoyant farming business:
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.
Successful marketing strategy is your ticket for converting hard agricultural graft and consistent output into a steady influx of sales revenue.
The financial statement of your poultry farming business plan neatly pulls together all of your business figures into the most meaningful array.
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
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.
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.
It's a natural phase of business growth.
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.
Kerala State poultry industry awaits your entrance.
Perhaps even the rest of India!
Need a helping hand drafting a winning poultry farming project plan?
Click the green button to the right---------------->
We'll introduce you to our instant online project report generator - for subscribers only, price $20 (~1,390.50 Rs.)
Any questions, feel free to ask us.
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Have anything to add which we missed out?
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 TeamRelated Resources