Poultry Farm Business Plan

With an objective to double farmer’s income by FY22, the Government encourages farmers to get involved in alternate livelihood and farming sources. One such complimentary farming activity that can be a boon to the farmer’s income is the poultry farming business. Given our country’s growing demand for poultry products and the government’s favourable policies and credit assistance, poultry farming is emerging as a sound business with a quick return on investment.

What is poultry farming?

Poultry farming implies raising of domesticated birds commercially, to increase the production of eggs and meat. Birds that are raised in farms are usually chicken, turkey, ducks, and geese for food. However, chicken has a universal market where broilers are raised for meat and layers for eggs.

The poultry farming sector, valued at Rs. 80,000 crore, is the fastest-growing section of the agriculture sector clocking 8% to 10% annual growth. It employs nearly 3 million people and contributes nearly 1.2% to the country’s GDP. Although poultry farming is a competitive business, with the right planning and complete knowledge of every aspect, the poultry farming business can be profitable.

What are things to consider before starting the business?

Poultry farming is a wide industry with many sub-sections to select from. Here is a list of sections that one can select from:

1. Select the sector that suits your interest, this includes-

  1. Meat production (through broilers breeding)
  2. Eggs production (through layers breeding)
  3. Production of poultry feed
  4. Equipment manufacture required in poultry farming
  5. Eggs and meat processing
  6. Chicken hatching
  7. Packaging and marketing of eggs and meat

Depending upon one’s interest and feasibility, the entrepreneur can select more than one section to start the business.

2. Select the type of birds you want to breed and raise in your farm. Initially, it is advisable to select from limited types of broilers and layers for meat and egg production. As the business grows, one can add more variety of birds depending upon the demand and profitability.

3. Select the poultry farm location. It is advisable to locate it not too far away from the place of consumption of goods instead of creating a logistic nightmare and increasing the cost of transportation. Finalize the place in advance from where the operations can be managed conveniently.

4. It is important to name your poultry farm and register it according to state laws. It also is necessary to create a logo and a website for your business, if you intend to market your products online and supply it to distant places.

5. Arrange the finances. Poultry business is not a capital intensive business and requires limited capital amount in the beginning. Funds are required for various purposes, including buying/renting land, equipment, hiring staff, birds, raw-material, manage cash-flow, paying salary, etc. To arrange funds, one can apply for loans from banks and other financial institutions, including government schemes like MUDRA.

6. Marketing your products among the target audience is necessary. Marketing is tricky, and different modes of communication can be employed to create a buzz about your product.

7. After marketing, supplying the product to consumers is essential. Consumers can be retailers, shop vendors, wholesale markets, restaurants, etc.

How much funds are required to start a poultry farm business?

Poultry farming is a capital intensive business, and depending upon the scale and the size of the business you want to start with, the fund requirement can be in the range of Rs. 1.5 lakh to Rs.10 lakh. The funds required are for various purposes, including:

  1. Cost of birds
  2. Cost of the place on rent
  3. Equipment cost
  4. Staff cost
  5. Poultry feed and other raw material
  6. Marketing, transportation and miscellaneous cost.

After understanding the needs of the entrepreneurs, all financial institutions extend credit facility at competitive rates. An entrepreneur can also apply for the loan from government scheme MUNDRA to start poultry farming business.

What are the documents required to apply for a loan?

The documents required to avail loan from financial institutions for starting a poultry business are as follows:

  1. Business plan
  2. Correctly filled application form
  3. Identity proof: Aadhar cardPAN card, Driving license, Passport, etc.
  4. Address proof: Voter ID, PAN card, Passport, etc.
  5. Photographs: 2 passport size
  6. Trade license and permits
  7. Rent agreement or land documents

What are the benefits of the poultry farming business?

As mentioned, poultry farming is a rapidly growing business due to increasing demand for poultry products. Some of the benefits of the business are:

  1. Poultry farming is a high yielding business.
  2. It does not require a lot of capital.
  3. It does not require a lot of space.
  4. Due to the high demand for poultry products, the return on investment can be quick.
  5. It is easy to get a license.
  6. Getting the required credit from financial institutions is not difficult for the poultry farm.
  7. Employment generation, moreover, not highly skilled labour required.
  8. Less maintenance is required.

How to apply for the loan for starting the poultry business?

By following simple steps given underneath, one can avail the loan:

  1. Check the eligibility criteria before applying for a loan
  2. Fill the application form and provide basic details
  3. Submit the loan application along with documents required (for KYC).
  4. Once the application is approved along with verification of documents, the loan amount is transferred to the account of the applicant

poultry farming business plan FAQs:

1. What is the eligibility for starting the poultry farming business?

The individual looking to start the business must have required or necessary training in the poultry business.

2. Is it necessary to provide collateral for availing the poultry farming loan?

Yes, it is necessary to provide collateral before getting a loan approved for poultry farming.

3. Is the poultry business good for new entrepreneurs?

Poultry farming is a good business to start with. However, one needs to have experience in poultry farming to be successful.

4. What are the different licenses required to start the poultry business?

The licenses required are:  NOC from the local-administration where the farm is located.  NOC from pollution board of the place  Electrical permission from the local electricity board  Permission for groundwater from local authorities

5. Is GST registration required for a poultry farm?

Yes, GST registration is necessary for a commercial poultry business.

6. Is poultry business taxable under IT act?

Yes, it is taxable as it does not come under the agriculture income.

7. What is the mandatory distance to be maintained between two poultry farms?

It is necessary to maintain a distance of a minimum of 1km between two poultry farms.

8. What is the mandatory distance to be maintained from human habitation?

5-6 km distance is sufficient and is required to be maintained between farm and residences.

9. Is GST applicable on fresh eggs?

No GST is not applicable to fresh eggs.

10. What are the most important documents required for getting a license?

Some of the documents required are:  Poultry population  Poultry farm structure and surroundings  Hygienic environment  Water system  Pest extermination  Carcass removal  Feed containers  Pesticide and medication for poultry birds  Safety system