Business Plan for Poultry Business

Executive Summary

Poultry Politics Ltd is a startup company which will supply families, hotels, restaurants, “chop bars”, cold stores, corporate bodies, professionals (teachers, bankers, etc.), social groups and the general public with high-quality poultry products such as broiler meat, layer meat and eggs. The Co-founders have a solid background in Microbiology so they realize the importance of adhering to strict hygienic practices so that the quality, taste and general health value of our products will not be compromised.

General Company Description

Poultry Politics LTD will be based in Takoradi, Western Region and is a poultry processing and distribution company with the sole of aim of adding value to locally reared broiler and layer meat and also the supply of eggs. Our operations will not only be beneficial to the end customer but also be beneficial to poultry farmers since they will have the opportunity to indirectly market their products through us. Poultry Politics will partner chiefly with cold stores and poultry farmers by soliciting their input and suggestions to effectively develop a product concept which will be of immense value to all parties.

Market Analysis

The size of the poultry market in Ghana is estimated to be around GHS1.2 billion and expected to grow by 25% by 2025. Government’s intention to place a ban on all imported chicken meat makes the local poultry sector even show more promise of impressive growth. Majority of the chicken meat market is being held by imported frozen chicken from the United States about 35%. Notable competitors include imported chicken dealers, market women dealing in live broilers and layers, and poultry farmers who deal directly with customers. A deeper analysis of our competition and potential customers will be made during our market research.

Products

1. Dressed and neatly packaged broiler meat
2. Dressed and neatly packaged layer meat
3. Live broilers
4. Live layers
5. Eggs

Marketing Plan

Our customer base will be divided into three groups namely, primary customers (Cold stores), secondary customers (restaurants and ‘chop bars’) and tertiary customers (corporate bodies, social groups and the general public). We are going to distribute products directly to our customers. Poultry Politics is going to employ different advertising strategies to effectively reach potential customers. Advertising strategies we are going to employ include website, Facebook ads, banners, fliers and direct email.

Economics of Business

Operations Plan

Poultry Politics broiler and layer meat will be dressed at home. Plans are being put in place to secure funding to build a chicken slaughterhouse facility in 2 years. Production of eggs, layers and broilers will be outsourced to poultry farmers within the Sekondi-Takoradi vicinity. Because we want to test the market, we will begin with 200 broilers which will be produced by Papa Kwame Owusu-Mensah’s mum. If we are successful in marketing all of the 200 broilers within a month, then we can think of expanding our operations by seeking more funding. In the first year of our operations, our distribution channel will be direct (online) and retail (via cold stores). Starting from the beginning of the fourth quarter of our second year of operations, an additional direct distribution channel (Cold store/ Egg depot facility) will be utilized.

Management

Papa Kwame Owusu-Mensah: co-founder and Chief Strategy Officer is a final year BSc Molecular Biology and Biotechnology student of the University of Cape Coast who has experience in sales and customer relations.

Eric Umkhonto Frimpong: co-founder and Chief Operations Officer is a final year BSc Molecular Biology and Biotechnology student of the University of Cape Coast who also has some experience with door-to-door trade and personal branding.

Francis Eshun: co-founder and Chief Marketing and Technology Officer is a final year BSc Molecular Biology and Biotechnology student of the University of Cape Coast who has expertise in marketing and also very adept with modern technology.

Critical Risks

1. Risk of Disease outbreak
2. Stiff competition from cheap imported products
3. Risk of unstable power supply
   

Financial Plan

Basis of presentation
This plan consists of the five-year projected financial information of our company. Even though our management believes these financial projections are reasonable enough, there can be no assurance that these projected figures will match those that occur in reality. It is worthwhile to note that our first month of the opening is likely to be in September 2020, causing the Christmas season to be reflected in the financial statement.

Income statement assumptions- revenues

The number of dressed broilers sold every month is the major driver of revenue for our company. Sales of eggs and dressed layers will also contribute significantly to our revenue streams.

The number of units sold per product

Poultry Politics dressed broilers and layers will remain at the high-end segment of the market for at least the first 3 years of operations. For the eggs department, both the high-end and the mid-segment sections will be served. When pricing our products, we consider the market segments.

Prices and production costs

Poultry Politics will sell its products both online (direct) and through specialty retailers (cold stores). In the 4th quarter of year two, management plans on renting a store in Takoradi which will serve as a cold store and an egg depot; this will be a second direct distribution channel.

Revenue forcasts

Projected income statement

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