Global Online Agricultural Extension
I have a contact in the Cuttack, Odisha (Mr. K) who is looking for a Kadaknath day old chick supplier.
He has searched via Twitter and sought to after State officials to point him in the right direction, but still awaits help.
If you can recommend any reliable suppliers of the Kadaknath bird in Odisha State – we will pass on the details of your supplier to him.
[Read more…] about Do You Have Kadaknath Chicks For Sale In Cuttack, Odisha?
Whilst producing a feasibility study for one of our recent agri start-up projects – we arrived at the question:
“Is water delivery in Gauteng a profitable solution for irrigating crops?”
This is the scenario…
Our client is renting approximately 1 hectare of land that he is now intending to use for small scale commercial farming in Gauteng, South Africa.
He has no access to a borehole (…his landlord has permitted our client to have one installed – an initial contractor site visit resulted in a price quote of R. 49,000 for installation…not to mention, additional funds for a tank for pressurising the water), neither has he access to a municipality water supply…
Hence our thoughts of water delivery, as a solution.
According to studies which provide benchmark estimates for optimal irrigation requirement (water volume) for a plot of similar dimension, growing broad leaf vegetables…
We expect our clients weekly water input requirement to be in the region of about 120,000 litres per week.
(Any comments regarding this quota – are we close? Way off? Your experience is most welcome…feel free to post an answer below).
We’ve always thought of water delivery in the context of pool maintenance.
Portable agricultural water supply was breaking the mold for us as agri-business consultants.
Tasked with analysing the cost/benefit and feasibility of large scale water delivery for our client’s agricultural project…
We got to calling around for advice from Gauteng’s local bulk water delivery companies.
Here’s what we discovered:
Our method of choice for broadcasting our request for proposal concerning water delivery in Gauteng was Gumtree, the online classified advertisement platform.
Our steps?
We simply posted on Gumtree a request for proposal inviting water delivery contractors in the area to submit their professional advice re: our client’s agri scenario.
Having drafted a communication, we posted the advert and waited for the response.
Of the say 6 or so water delivery firms we contacted, the response was unanimous – 100% response rate.
However, only one contractor responded offering ‘upfront disclosure’ on:
…yet all very promptly established contact via email, same day.
Our original RFP sent via Gumtree re: agricultural water deliver in Gauteng:
“I am seeking a quote for pricing and availability of water delivery to an agricultural plot in Gauteng Province due to be sown in the coming months which has no on-site water supply.
Please could you provide the following information:
– Are you able to deliver water suitable for crop irrigation to rural Gauteng?
– Does the water have to be portable?
– The plot is 1 acre in size are you able to advise on the volume of water needed and frequency of delivery?
– Please could you provide pricing by volume of water delivered?
– How is an account opened/order raised and how is payment received?
– How quickly is water delivered after ordering?
– What water storage equipment should be arranged on site? Do you provide?I would appreciate any additional guidance or advice regarding this matter.
Please reply in the first instance to this email address…”
The 1st response in detail from Shelton Mlambo (water delivery contractor Eastern Pretoria):
“Yes we can deliver…
Normally within 48hrs after order: –
For irrigation purpose, maybe you can phone me on 0823448063 for clarification
e.g.
Confirm the location and type of crops to be under irrigation
e.g.
broad leaf and wheat needs lots of water say twice a week, while trees and fruits are fine with little water esp. under drip irrigation.
Yes storage tank is required.”
After filling in our water delivery expert with a few more practical details, he was able to recommend the following:
“Around 125,000 litre storage tank 2.5x the average size of a swimming pool will do to water a hectare of spinach twice per week to achieve around 2.5cm to 3cm of rain fall – which is the depth of the roots of the plant.It follows therefore that 125,000 litres of water per week will cost around around R.37,500 the least…(30 cents per litre)
- Cash on Delivery unless by arrangement.
- we can install cement/ mobile storage and a pump with a mobile sprinkler system – on a separate quote after site visit
- mobile sprinkler.
- additional surface mobile pipes to reach out- to be moved over the field over 8 hours – pipes moved /changed area after every two hours.
- we have sufficient tankers to meet demand of water through out the year.
“[NOTE: we greatly appreciate the assistance of Mr. Shelton Mlambo in providing us with upfront pricing on his services…this enabled us to support our client promptly with the input needed to provide him with timely business analysis for decision making.]
Loaded with the useful professional input of Mr. Mlambo on behalf of his water delivery services company…
We were able to swiftly produce the cost benefit of this method of irrigation, in our client’s case:
Without any further deliberation, we can clearly see the ongoing service cost of water delivery for our client’s 1 hectare farm…
Would be prohibitive – even at the rate of 30 cents per litre…
But for small scale agricultural purposes…
At least in our client’s case…
This just wouldn’t be a profitable solution.
The next move would be to return to our quote for drilling a borehole and trial the BCR (benefit cost ratio), to see if drilling such an installation would be worth our client’s while.
Also, perhaps regrettably from our client’s point of view…
Looking for other available farm land in Gauteng which comes with water supply inclusive within rent.
Either way, the overall profitable return will need to be analysed to guide his decision making.
More on this in another post/article.
Are you looking for water delivery services in Gauteng for an agri project or other purpose?
Submit an enquiry below and ask away – we welcome local water delivery contractors to respond to you.
Are you a water delivery company representative serving: Gauteng, Pretoria (Tshwane) or Johannesburg?
Join the conversation – feel free to comment, answer the queries, suggest alternative solutions or simply post an ad!
Not only are the eggs required, but a consistent delivery arrangement. Prices are required therefore to include logistics.
Please declare your:
Layer farmers only, please – no merchants or brokers.
Thank you in advance for your time to get in touch.
Having read the following article in this Farmer’s Weekly (South Africa): Small land, big dreams for urban veggie farmer – we see a genuine need for a poly tunnel rental company in Gauteng, South Africa.
The advantages of poly tunnels seem to be clear and certain as for this small scale farmer from Kempton Park in Gauteng:
“Though his makeshift tunnels do the job, he says he would consider leasing tunnels or the structures for tunnels in the future, as larger tunnels would be easier to work in and allow him to work standing up.”
Sure…
Many a bootstrap, start-up micro-farmer is forced for budget sake to make-do…with a make shift tunnel…
But it begs the question:
Are there any cost effective poly tunnel leasing services out there in Gauteng?…
Or perhaps, Johannesburg?
Or Pretoria even?
If so…why not share your recommendation.
Clement Tshuma, the focus in the Farmer’s Weekly interview, could do with one!
If you are have any details to share on this subject – feel free and go ahead…
We’ll give you a few pointers on what might be relevant to prospective customers:
The following will help any Gauteng locals get a gauge of what’s on offer with your tunnels:
These are just a few pointers…but if you have any further information which you feel will be relevant…
Got photos of some structures you feel need a showcase?
Upload them.
Join the conversation below.
Are you a local producer looking to preserve your tender-leaved produce against the harsh winter frosts?
Why don’t you submit a quick enquiry below, sharing your exact requirements…
If a resident expert in your area doesn’t respond with an answer on this page, then we’ll do the leg work for you and chase up a response.
The short answer is: Yes – small scale farming in Gauteng can indeed be a profitable venture!
Want to hear the best part?
You don’t even need a loan or government subsidy…
Don’t believe us?
Take a look for yourself…
Meet Clement Tshuma!…Vegetable Producer in Kempton Park in Gauteng
“When I started, I felt I needed to have a project that could benefit those who have land, but cannot afford equipment. I think if someone farms on a small scale, he can gradually expand.
The idea is to show people that it is possible to be profitable without needing a tractor and large equipment,” Clement explains.
“…the first layer is sustainability, then cash crops to create revenue, and then adding value, like selling chilli powder, to enter more profitable markets.”
Further reading: Small land, big dreams for urban veggie farmer – Farmer’s Weekly ZA
This insightful article is a must read for any budding small scale agri-entrepreneur anywhere – but particularly if you live in Gauteng, South Africa.
Many important lessons can be learned from this article if you are considering starting up small scale farming on a budget.
Clement’s ‘organic’ approach to business growth gives hope for you if you want to begin growing cash crops without capital investment.
His no debt model of small farming, lowers the bar to entry for many.
As quoted from the same interview, Clement advises:
“…the inability to secure loans is a major obstacle for those starting out, he says.”
The article narrative continues:
‘From the outset, Clement’s idea was to start out producing for own consumption, and then slowly build a business from there, without owing anyone any money.’
I’m sure you’ll find these very encouraging words, if you also have ambitions of becoming a profitable local grower of produce…
But just can’t see past needing a loan.
The financial investment approach to start-up, however, has three crippling drawbacks to most ‘would-be’ entrepreneurs:
Many newbies with an idea to begin small scale agri-business projects, freeze at the first apparent hurdle of obtaining ‘seemingly vital’ financial support.
But zero-debt start-up entrepreneurship stories like Clement’s, show a far more sustainable and profitable approach to getting into small scale production.
Here is our own digest of key success factors, according to Clement’s article:
One quick thing to point out:
Whilst Clement’s small scale farm produces vegetables…
The take home points below (if we read between the lines a little) are entirely transferable to any agri-project, whatever your niche…
Crop or livestock…
Fruit or vegetable…
The principals can all be applied.
In our experience of writing farming project reports – we see the number one most influential factor affecting the benefit vs. cost trade-off is…
Access to land.
Buyers of land take on large capital expenditure, usually in the form of debt.
This size of outlay greatly skews the investor attraction in the venture.
Where the benefits of the project i.e. potential profits and earnings are overshadowed by the heavy weighting of land purchase…
Alternative routes of investment, like stocks or government bonds offer better returns.
Although this approach of Clement’s does not depend on debt…
It is still worth taking note of the rationale behind the aversion of investors in agri-business projects which require proportionally large land investment.
Land purchases dig a deep debt ditch which future profits may not lift you out of.
Said in simple terms:
Why overstretch yourself & damage your profits tomorrow with the overburdening cost of buying land on credit today?
Start small – and priorotise quality over quantity.
A consistent approach, with consistent results is worth more in the long run than over-subscribing and under-delivering.
You can always expand once you’ve got a quality operation up and running.
But it’s not so easy always to improve quality once the wheels are already in motion.
Profitability as a grower/small scale farming is dependent upon production yield.
The outdoor environment is anything but controllable.
There is nothing you can do about your farm being affected by the natural surroundings.
Adverse conditions, such as a particularly harsh winter, can significantly hamper your harvest yield.
Production loss = lost sales revenue = lost profit = lost earnings.
That said,
The converse is also true.
Greater productivity = increased sales revenue = increased profit = increased earnings.
Agricultural stock which has a relatively higher growth rate, also offers higher profit potential.
What are your most profitable agricultural profit opportunities?
Hit the search engines and do some desk research…
Also, speak with some produce distributors re:yield and investigate market prices.
Tenant farmers can make a profit.
Such arrangements should really work for both parties – the land owner and the producer.
Where the use of land offers great potential for productivity in the right hands…
It still requires the right hands.
You can’t have one without the other.
This co-dependence theoretically makes for a a balanced bargaining power between parties.
Land, like any asset, requires hard work to make it reliably generate income.
Getting qualified and willing hands to convert that potential into landlord’s profits is not so easy to find.
Many ‘would-be’ small scale farmers have the intention or the idea, but not the credentials.
Want to improve your prospects of securing long term affordable land rental?
Draft a winning project proposal.
Keep paid labour to a minimum – if any at all.
Consistency of care for vegetables, fruits, livestock etc. is one of the critical success factors for obtaining optimal yield.
The more hands involved, the less the consistency.
More variables, lead to greater variability of results.
Seeing as your operation is so small – you should be without excuse for keeping it as a one man band…
Ok…
Maybe with the odd helper at times of particularly rigourous labour where only two will do.
Small scale growers who learn to DIY get great results like Clement.
Quality control is one of the most determining factors of small scale farming success.
Learning to handle the operation single-handedly prepares you for a far more confident engagement with buyers and other commercial supporters.
DIY production also negates the cost of staff hire.
Learn to adapt and to make the most of your environmental conditions – whatever the weather.
In Clement’s case, he made the most of the wet conditions in winter for working over the soil with ease…
As with any business, direct costs reduce profit margin.
The higher the direct costs of sale (or cost of goods sold – COGS), the lower the margin of profit gained on each sale.
What are the typical direct costs for a vegetable farm like Clement’s?
If he buys seedlings to produce his harvest, the cost of seedlings therefore is his #1 COGS.
In other words:
Every harvest of his incurs the automatic cost of having to buy baby plants.
Is it possible to sidestep this cost?
Propagate your own seeds and close the production cycle.
Again, DIY wins.
In doing this, you take on additional operational complexity, on one hand…
But the another hand…
You save the direct cost of seedlings, massively increasing your profit margin per sale.
Well worth the initial hassle.
It will pay you back…
As long as your propagated seeds yield the same harvest end product.
Always work towards the long term goals.
Whilst immediacy of sales and operational rigour can take centre stage…
Don’t lose focus with advancing forward on your long term plan for growing your capacity and increasing earning potential.
In other words…
Make sure your efforts aren’t just set to maintain current earnings, but…
With every once of grunt work you are also increasing your earning potential.
Acquire a good spread of stock suppliers.
Each supplier will offer unique benefits of engagement.
Perhaps better terms for delivery…
Maybe more flexible pricing…
Or, more convenient presentation of stock for ready use.
Search far and wide for the best deal that works for you and your farm.
Quality of stock should never be undercut.
Undercutting quality, undercuts yield which undercuts your profit and damages earnings.
This is never advisable.
Manure from local sources can grant great savings advantage in another necessary cost category of your small scale farming business…
Fertiliser.
Do your best to tap into the local manure supply by liaising with a livestock farmer…
And save yourself huge recurring cost of fertilising soil for crop growth with a local livestock output.
Water conservation is a key aspect of any agricultural process.
Availability of clean, cool water is a premium in most environs.
Gauteng, South Africa is not different.
Where you can save on the usage of water (without damaging yield) – it is an advantage for your farm.
Both in labour and resource consumption.
Techniques such as mulching offer water saving benefits which produce pockets of incremental gain within your farm’s operational model.
Adopting a variety of watering methods grants high specificity on delivery of moisture to the crops.
Producing the optimal balance of availability and uptake of the precious life stimulating water is key to receiving the maximum yield.
A variety of watering methods will ensure you cover all bases in getting water to the place of need most efficiently and effectively.
Don’t starve your business of much needed reinvestment for upkeep and improvement.
Keeping up with general maintenance and running costs is one thing…
But adding value back into the system for growth needs a deliberate program of reinvestment.
If you draw down all available net profit as earnings…
You deny your business the time for bedding in and becoming established.
Being a small scale producer or business owner in many cases has advantages.
With your more compact scale of enterprise, the more personable approach to business should be something that you excel in.
Giving customers or clients the benefit of dealing face to face with the business owner directly is an instant value adder.
Don’t pass up on making the most of this proximity.
One common misconception received by many a small scale farmer or entrepreneur is:
The perceived need for big equipment.
Big equipment is touted by industry to offer the profitable advantages of saving time and increasing output – but then again, they would say that!
Before taking the plunge to invest in new kit…
As yourself…
Do I really need it?
How can I make do without it?
How much of my profits will be taken up with capital purchases and maintenance costs?
A cost benefit analysis will soon enable you to appreciate the pros and cons involved.
In this interview, Clement, confidently attests to his commitment to avoid capital investment in large scale equipment.
Aside from his irrigation tools for drip water delivery and tunnels to protect against frost – he has a comparatively lean operational approach.
The frost kills growth.
To maintain a consistent production schedule year round, Clement uses the advantage of poly tunnels to guard against the harsh cold.
Staying ahead of schedule and being proactive keeps his crops on target for profitable yield, no matter the season.
Year round earnings are untouched by the winter.
Pests devour growth in the field.
It’s their environment too and they typically don’t need any invitation to take a bite.
Whilst there are many costly (not to mention dangerous) chemical interventions:
Clement has found that better soil management and tilling naturally drives away his unwanted garden guests.
Clement’s most trusty tool in his battle with the notorious Cutworm are surprisingly…
His hands.
It costs his time and availability to be on-site everyday, but as committed as he is – the Cutworms stay far away.
Again, he saves on:
…by every farmers strongest advantage:
time in the field.
Tending to his plot is great enjoyment to Clement.
He enjoys time with his crop.
Being there all the time, keeps all things that don’t belong:
…completely overwhelmed by his busy-ness.
With every minute on-site he directly preserves his bottom line profits and earnings.
He didn’t attempt to bite off more than he could chew at the start.
Again, quality over quantity in agriculture and generally business keeps output maximised…
Thus, getting out of the soil the highest proportional gain for corresponding input.
Cultivating the total plot in phases, means that advances into new territory is with a view to remain.
Take on too much…
And you run the risk of being overstretched and the result…
You are pushed back, retreating to handover your newly ventured portion back into the hands of ‘the conditions of the wild’.
This yo-yo of:
Ground gained…
Then…
Ground lost…etc.
Is one sure way of both depleting your resources on failed campaigns…
As well as becoming thoroughly disheartened in the battle to occupy your whole plot, profitably.
Know how you are going to grow…
In advance.
Think forward.
Your current customers may have something in common with others out there and demand may increase accordingly.
You want to be able to give your business the ability to serve and show readiness to your growing audience.
Getting mainstream attention is the most obvious desire of most small scale farming entrepreneurs.
Major multiples and their oversized crowds are the often the preferred target for getting new products to market.
But what about the niche buyers?
They may not be many in number…
But as Clement found out, listening to the specialist niche buyers gave him profitable angles of augmenting his product offering.
Taking his raw product and adding value by producing a derivative or value added product…
Is a common method for small scale producers to tap into greater profit potential.
By part processing the base product – culinary preparations like condiments and seasonings can be profitably offered to new customers.
Sure it takes an initial set-up cost of equipping your business with the processing ability…
But once set-up, it simply a case of keeping the conveyor belt moving to continue producing the units to meet the demand.
Keeping a balance of enough ‘raw product’ vs. ‘value-added product’ to suffice the composite needs of the market is key.
This takes greater management attention.
Clement found favour with restaurant buyers sourcing produce merely for the fact that he is a local grower.
Research shows that restaurants chefs typically consider buying from local producers have the following benefits:
…amongst other reasons.
If you’re unsure about the buying interest of chefs ordering produce from your small farm…
Chefs surely aren’t!
Because Clement serves a small clientele on a consistent basis, he doesn’t have to stretch his business development efforts to go looking for new accounts continuously.
Serving a small audience with quality – consistently – keeps him in business.
He can therefore afford to offer relatively stable prices…
With no surprises.
This makes for a predictable and reliable relationship with his buyer counterparts.
His first step in this venture to grow and sell cash crops was to aim for the nearside target of becoming self-sustaining.
He figured:
Before he attempts to grow consistently for others, he ought to be able to do it for himself first.
Wise move!
Not only does he learn to make his mistakes without the pressure of and audience’s demand…
But also he gets to trial his products first and get it standard before his worst critic:
Himself.
In a comment within the conversational thread following the article in Farmer’s Weekly (South Africa)…
Clement addresses one of the commentators with the following retort:
“…thank you, we would love the local hotels to uptake our produce without the middle man Community Supported Agriculture,any pointers,paperwork?”
Clement was responding to a comment encouraging him to consider organic produce delivery.
His choice of words give insight to where his priorities lay for growth.
Local hotels provide another niche customer segment which Clement could serve in the growth of his business.
Often the decision makers buy from agents/distributors who curate a tailored product range to suit the buyers’ needs.
Such middlemen approach local producers offering to promote their goods and in return offer access to commercial customers.
The agent’s gain is commission on the sale.
This eats into the potential profit margin of the producer.
Producers like Clement would prefer to sell directly to hotels and maintain their margin.
Also, Clement mentions Community Supported Agriculture as a means of increasing his share of profits.
By such a system, producers like Clement sell shares in future harvest yield in advance to consumers in the community.
The system is not ideal by any means and relies heavily on market liquidity – i.e. being able to sell enough shares to cover the entire harvest before the supply is produced (…the supply, of course, being perishable if not claimed).
In other words, farmers can find their efforts to produce a bumper harvest be give in vain as their ability to match produce with buyers falls short.
Where this happens, they’re left with stock that each day dips in shelf life as they rapidly seek to sell the off-take.
Direct selling is the most advantageous trade tool for the small scale farmer.
If you can go to market successfully by yourself, under your ‘own steam’, so to speak…
And reach consumers cost effectively and consistently – then you’ve got a whole host of economies of scale…innovation…& efficiency at your finger tips:
…and much, much more!
For every small scale farmer this is the ultimate commercial goal.
To conquer direct selling.
In many cases this is more critical a success factor than even growing the produce.
Getting direct access to your consumer market is arguably the most difficult and resource intensive goal…
Yet undoubtedly the most potentially profitable.
And yet most surprisingly it can be done with very little expense…
Other than your time to research and to practice – learning by mistake.
Here’s a quick guide to help you on your way…
The SEO Marketing Hub – Backlinko
Diligently segmenting your customer audience based on what they want enables you to identify new opportunities of profitability.
Undoubtedly, there are merits in consolidating your focus on a single customer type…
But…
Extending your reach with new customer targets keeps your income and profits stretching…
Plus, your learning ability continues to be stretch with every new audience engagement.
The stuff of innovation and extending commercial growth.
It’s a balance.
An article like the one above by Gerhard Uys is highly valuable to ‘would-be’ small scale farmers, especially of course, if based in Gauteng, South Africa.
It blows away the misconceptions and myths and gives credence to the virtues of hard work, faithfulness and staying within your means.
We would welcome knowing more from Clement and other such producers who are bucking the trend of investment…
In favour of an organic approach to start-up business growth.
Are you thinking of starting up as a small scale agricultural producer in Gauteng or other locality & need some start-up advice?
Are you an experienced small scale producer with some value to add to your peers?
Leave and comment/answer to this question below.
Are you a supplier of stock or equipment and would like to offer advice to producers?
Leave an answer below.
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.
Image Provided Courtesy Of… [Free Vectors via Vecteezy!]
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
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:
- 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
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:
- 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:
- Diploma in Poultry Production – Kerala Vet & Animal Sciences University
- Business Finance Training Courses For Bankers – Agriculture Co-Operative Staff Training Institute
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:
- 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:
- The Samagra Kerala Story – Samagra Charitable (Youtube Channel)
- Smart Micro-Business Development In Kerala – Sujith Kumar (YouTube Channel – www.smartmicrobusiness.com)
- Hi-Tech Chicken Farm In Piravom – Aarika ramesh (YouTube Channel)
- Success Of Poultry Rearing – (Kissan Kerala YouTube Channel)
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…
All data researched and originally sourced by Deepa Menon, Assistant Professor (Published on Slideshare)
| 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 |
| 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)
| # | 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 |
| # | 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 |
| 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:
- colour
- size
- weight
- shape
- quality
- nutritional balance
- quantity
- 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.
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.
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…
…carefully consider.
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.
Expansion.
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?
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
