How much money do you need to start a poultry farm?

Posted byPapa K. Owusu-MensahPosted inPoultry farming

Poultry farming is one of the most lucrative businesses, and you do not necessarily need a high-level formal education to venture into it. However, some farmers do not understand the financial implications of the business they want to start, which can be disastrous. For example, a farmer I know, who was not financially prepared, decided to rear layer birds. He soon had to find out the hard way that layers need to be fed for at least four months before he gets even a sniff of revenue. Frustrated about how his farm was draining him financially, he gave up and sold his birds when they reached three months of age.

Carefully determine the type of bird and the total number you want to start with

As you already know, poultry farming involves rearing domestic birds like chickens, ducks, guinea fowls, and turkeys. I suggest that if you are living in Ghana, start with 200 layer chicks and choose the battery cage system of production since this is a more efficient method of converting almost all the energy derived from feed into egg production.

I am advocating that you start with layers because eggs are relatively easy to sell in Ghana compared to meat. Furthermore, the number of birds you start rearing as a beginner is very important. For example, if you intend rearing layers, you should bear in mind that the birds take quite a long time before they start laying. So if you order more day-old layer chicks than you can afford to cater for, their feeding requirement may overwhelm you financially.

Some equipment will have to be purchased

After determining the number of birds to raise, you should also budget for poultry equipment. Equipment you may need includes drinkers, feeders, and heat-producing equipment for brooding. However, if you want to produce layers, you might also budget for a battery cage with a 200-bird capacity. Since drinkers and feeders are typically in-built into the battery cage system, we get to eliminate those costs.

Operational costs

Poultry farming is a very interesting business. Unlike merchandising businesses where you only purchase the inventory and then sell at your store for a profit, poultry farming goes beyond that. During your operations, you may have to pay staff salaries, vaccination and veterinary visits, and probably marketing costs as you attempt to sell off your broilers or eggs. All these come at a price, so you should be thoroughly prepared before you start.

Breakdown of poultry farm startup costs

Even though layers begin to lay eggs after four months, it is not the best of ideas to raise money that would help your farm run for just four months. This is because immediately after four months, only a small percentage of your birds will start laying eggs. Also, the few eggs produced in that period may not necessarily be of marketable size. Therefore, it is advisable to raise money that can cater to your farm for the first eight months, since by then, the revenue generated from the sale of eggs could be enough to keep the farm financially self-sufficient. With that out of the way, let’s jump straight into the breakdown (This breakdown is accurate as of the time of updating this article on the 17th of May, 2023).

  1. Land: I didn’t mention land in the introductory paragraphs because I assumed you have some backyard space at home, but if you don’t, you’ll need to purchase some. It is advisable to purchase the land outright instead of leasing it because you don’t want your landlord kicking you out when you least expected it. Depending on your location in Ghana, a decent two plots of land may cost you not less than GH₵ 40,000.00.
  2.  Structure: The structure for a 200-bird capacity farm may cost around GH₵ 12,000.00 if the deep litter system is used. However, less space is required to raise birds using the battery cage system, so the budget for the structure can be halved to GH₵ 6,000.
  3.  Battery cage: A 200-bird capacity layer cage would probably set you back in the region of GH₵ 5,000.00.

Fig 1: Image of a battery cage. Source: https://tinyurl.com/yypkabne.

  1. Drinkers and feeders: As I said earlier, feeding and drinking systems are typically in-built into battery cage systems, therefore we don’t expect to spend money on that.
  2. Heating equipment for brooding: There are numerous heating equipment to choose from, but I recommend the infrared light bulb which costs around GH₵ 100.

Fig 3: Image of an infrared light bulb

6. Day-old chicks: In Ghana, the price of a day-old chick imported from the E.U is around GH₵ 18.00 and since we plan to raise 200 birds, our total cost for this will be GH₵ 3,600.00.

7. Operational costs:

i. Feed: It is estimated that 200 layers will consume not less than 3,000 kg of feed in the first 8 months of their life so that will cost you around GH₵ 21,000.00.

ii. Salaries: Since the battery cage system is highly efficient, you will not need much labour. Therefore, only one farmhand or yourself will be required, consequently, we estimate salaries for eight months at GH₵ 4,800.00.

iii. Utilities: You are going to need electricity and water to run your poultry farm and since we are starting with only 200 birds, you should expect to spend around GH₵ 600.00

iv. Veterinary Services: Birds are living things so you’ll need to vaccinate them against diseases. For this reason, you’ll need to spend around GH₵ 150.00 for the first eight months.

Summary

From the breakdown of the costs above, it is estimated that a 200-bird layer farm will cost you at least GH₵ 81,250.00 for the first 8 months if you do not already own land. However, if you already have land, then GH₵ 41,250.00 could be enough.

If reading this article piques your interest in starting your poultry venture, it will be in your best interest to write a good business plan. Even if you don’t necessarily have the time to write your own, don’t worry. Just send us a WhatsApp message by following this link https://wa.me/233592239127. And we’ll draft a professional business plan for you at a very reasonable price.


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Finally, are you ready to start your dream poultry farm, but don’t know how to construct the chicken house, brood the chicks, source the right materials, etc.? Just follow this link https://wa.me/233592239127 for more inquiries.

60 thoughts on “How much money do you need to start a poultry farm?”

  3. I need to get in touch with you as soon as possible. I have started a small layer farm and I need a battery cage. I hope You can help Me own a quality cage. Kindly reach me on 0246947967. Thank You

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    1. Thanks for reaching out, Steven. Right now, we offer bookkeeping and accounting services for poultry farmers. Anyway, the price for my estimate was taken from Alibaba. Check it out for yourself, they have numerous options for you to chose from.

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  4. Im Abdul, from upper east, i want to do layer poultry but our weather is warmer i want to know if it wont affect egg laying

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    1. Hi Yakubu, thanks for reaching out. PKOM Bookkeeping is Bookkeeping/Accounting service for poultry farmers therefore we are more specialized in the financial aspects of your business. If you want more practical info about poultry farming other than financial, then contact Joseph Akumaglo on 0545665439.

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  6. How much profit can one expect from the 200 layers and whats the period for which the layers will continue to lay

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  9. Mostly farming is ideal in a place isolated from settlement (correct me if am wrong ), with limited access to electricity and water supply, how is the battery cage system suitable in a situation like this?

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    2. poultry usually eat their eggs if they are deficient in calcium and also they behave that way if the are overcrowded. suppliment them with calcium and make sure they ain’t overcrowded

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      1. Thanks,ever heard of GHANA CHIX FARM in the 1970s run by the late Mr KOJO PLANGE, I learned the farming there to be the assistant farm manager before leaving for Nigeria.Would like to start a farm.

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  13. It’s a business that I want to start. My target is to rear 50,000 layers as a full time business. Kindly help me with more information.

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  15. Thanks for the education but I think your calculation didn’t sum up correctly especially considering the estimated price of land at ₵60,000(Sixty thousand ) and ₵15,000(Fifteen thousand) and you arrived at Gh 12,000( Twelve thousand) as the estimated sum of money one needs to begin the business which is not even closed to price of the land.

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    2. Thank you very much. The figure was supposed to be GHS 6,000.00 instead of GHS 60,000.00 but now, the post has been updated. You can check it out. We highly appreciate comments like this. Once again, thank you very much.

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  16. Hello,am happy to have come in contact with you guys,I have been wanting to start a poultry farm business but didn’t how to go about,please I will be glad to seek your nurturing ideas to enable me start it ..

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  17. Pls,I have lands to start,but my problem is when to start and the capital to start,so if there is any assistance am ready

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  18. So does one have to keep the small birds in to Battery cage till they become older and start laying eggs, or u have to keep it somewhere till it get older enough to be kept inside the battery cage for them to start laying eggs?

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  23. I will like to start a farm.. I already own two plots of land .i want to start 5000 layers .. how much do I need to start. Kindly plan it for me

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  25. I have started keeping local birds and I have about 40 birds but I’m afraid of this yearly birds sickness.how do I prevent them from dying..

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  26. Good evening am Mubarak, please i need estimated amount to start poultry farm which i have the structure and lighting already. Kindly help me is very urgent.

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    1. Thanks for your message. Poultry farming is a very lucrative business if done correctly but it involves a lot of investment so you need a business plan to guide you on how to raise money and at what point the money is needed to be raised.
      What the plan entails:
      Operations: How to efficiently run the business.
      Marketing: How to leverage the Internet and social media to reach more customers.
      Financial: You will be provided with a detailed budget on how much money you need to raise. You also get a five-year financial projection on revenues, expenses and profits.
      And the good news is the plan comes at a very reasonable price. You can send us a WhatsApp message via +233 59 223 9127 for more details.

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  27. Thank you so much for this insight, please I want to know from you whether I should choose poultry over piggery with my budget of Gh10000. Assuming I’ve the land. Thanks

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    1. Your choice will depend on many factors. However, we advise that you allow us to write a professional business plan for you. As this will provide you with all the necessary insight to make the right choice. You can send us a WhatsApp message by following this link https://wa.me/233592239127 for more details. Thank you.

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  28. My name paa James, a.k.a ghanaman, I need professional business plan for 6 acres of land for the following:
    1) maize/corn for 6 acres of land
    2) on the same land, l want to grow
    coconut & cassava plantation.
    3) after harvesting number 1 & 2
    2023 season, l will involve in
    Livestock farming, pig farming,
    and poultry farming. My contact
    number is 0546786500. Thank u.

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  29. Please am interested in this business but will kennedy agyapong biggest
    cold store affect poultry farm business in Ghana

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