How to Effectively Market Your Products as a Poultry Farmer

Introduction

As you already know, poultry farming involves a great deal of work. It takes a great deal of commitment before you finally get to see your products. At this point, the battle is not yet over – you will need to find buyers who are interested in your products and this is where marketing takes prominence.

Identify your target market

Most poultry farmers I have spoken to are into both egg and broiler production. The eggs are usually sold all-year-round but broilers are typically sold on festive occasions. Perhaps, you may be interested in rearing broilers so what you need to ask yourself is, “who I am going to sell my birds to?” Potential customers for broilers include restaurants, hotels and chop bars.  If you are into egg production, your potential customers may include supermarkets, fast food joints and restaurants.

Determine the distribution channel to employ

Equally as important as determining your target market is how to reach them. Understanding how to reach your target customers will help you better prepare financially and strategically. That being said, there are two ways you can employ to reach your target customers: direct method and indirect method. For the direct method, you engage directly with your customers by meeting with them face-to-face or through digital methods. On the other hand, the indirect method involves the use of a middleman or distributor – broilers are typically sold on credit by farmers to market women who later sell them to the general public.

Direct distribution channel in detail

As I stated earlier, the direct distribution channel involves direct contact with customers. For instance, if you produce eggs, you can decide to buy a van and have your driver deliver them directly to your customers; this way, you have absolute control of the pricing and can generate the maximum amount of profits. If you rear broilers, you may decide to open a small cold store to sell the meat directly to your customers.

Image of a van by Pixabay PublicDomainPictures

Indirect distribution method in detail

To establish yourself as a direct distributor requires that you build customer trust and brand loyalty but these things sometimes take years to achieve. For this reason, many poultry farmers prefer to sell their products through established players in the market but this strategy seriously hampers their (the farmers) profit-earning potential because they are at a relatively weaker bargaining position as compared to their distributors.

Steps poultry farmers can take to reach a larger market

Alright, if you have read the post to this point then it means you are serious about reaching more customers. Below are four steps you can take to achieve this objective:

  1. Take advantage of social media: You were probably referred to my website by Facebook, isn’t it?  In this current age we are living in, simply having a brick-and-mortar location and primarily relying on store traffic doesn’t cut it any longer. Take my startup as an example. If I had just rented some office and put some signboard on it, I would have been limited to my geographic location but because I operate online, I can serve the whole world. You need to utilize social media because it can help you reach thousands of customers daily. Start by opening a Facebook page and actively educate your audience about the health benefits of your products. Trust me, this is not going to be easy but in the long term, you would have built a solid customer base.
  2. Attend networking events: I think we all heard of this statement, “it’s not what you know, but it’s who you know that matters.” Well, I pretty much agree with this statement. Let’s critically analyze this scenario, shall we? Let’s assume you are a very talented runner, who can run 100m in just 10 seconds and nobody knows of your ability, how do you make it to the national Olympic team? Sure you are a hardworking farmer and produce high-quality products but it wouldn’t hurt if you attended some poultry farmer association meetings and conferences from time to time.

Photo of a networking event by Christina Morillo from Pexels

  • Do a door to door campaign: One thing that prevents many poultry farmers from reaching their full potential is their fear of talking to potential customers. Sure, rejection is painful but you know what is more painful, “not finding anyone to purchase your products.” Go out there, distribute fliers and talk to restaurant or chop bar owners in your area. Remember, the more people you talk to, the higher your chances of gaining a customer for your business.
  • Sponsor a local event or a charitable cause: If you are a very observant person, you may have noticed that all of a sudden there has been a wave of companies donating sanitizers, personal protective equipment, and food items to help mitigate the disastrous consequences of the COVID-19 crisis. Did you, for once, ever believe that these companies were doing these things out of sheer kindness of heart or the love for humanity? Don’t deceive yourself. These companies are only doing these generous acts to boost their public image and further increase their appeal to customers because, after all, who doesn’t love a kind-hearted person? In your small corner you can also boost your appeal to customers; cook some food for your local youth football team, donate to your local church or mosque and give some money to orphanages. Trust me, these strategies will go further to boost your business in the long run.

Should You Quit Your Job to Focus on Your Poultry Farm?

If you had been following my blog, you would have realized that I discussed in a previous article some ways you can raise funds to start your poultry farm. So how do farmers get money to fund their businesses? A significant percentage of farmers fund their poultry operations through income generated from their day jobs. Maybe you are passionate about livestock production and can’t wait to be your own boss, is quitting your job the right decision? Well, the answer to this question may not be as straightforward as you think.

I started Pkom around March 2020 while doing my National Service at the Ministry of Food and Agriculture, Sekondi. I was passionate about poultry farming because I was doing bookkeeping work for a relative who was into poultry farming. After realizing how profitable the business was, I took it upon myself to do more in-depth research into the industry.

Furthermore, while doing my service, I realized my money was lying idle in my e-zwich account, so I decided to expand my small-scale bookkeeping business to a national level. Hence, Pkom was born. In my case, I used money obtained from my monthly allowance and my customer to fund my business.

If you followed my story closely, you would realize that I didn’t stop my day job to pursue my entrepreneurial dreams, but your case may be different. Firstly, it is very easy to rear 100 layers if you have the necessary funds. All you have to do is buy a battery cage and hire one employee to collect the eggs and dispose of the waste produced.

But as time goes on, you may realize that your business is expanding. At this point, you may notice that your business is highly profitable. So if you happen to dislike your current job, it would be a very good idea to quit.

Just a little word of caution, don’t just hastily quit your job and dive head-first into poultry farming; that is way too risky. After all, your current job will provide you with the financial leverage to overcome the tough initial stages.

If reading this article piqued 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.


Are you tired of too much paperwork involved in keeping records on feed, egg collection, vaccination, mortality, profit and loss, etc.? Worry no more. We are developing a software application that simplifies poultry management. Follow this link if you are interested.


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 enquiries.

How to Properly Manage Your Farm’s Finances

Introduction

If this coronavirus pandemic has taught us anything at all then I’m sure that we’ve all learned that no condition is necessarily permanent. Recently, we have heard that a lot of businesses chiefly in the aviation and hospitality sectors struggle because they simply do not have enough cash to weather the storm. Even though poultry farming is a highly lucrative business, it doesn’t necessarily mean things will always be rosy. Follow me on this magical journey as I describe some simple strategies that will keep your farm profitable and will also help to weather the storm in the event of a crisis.

Separate your farming funds from your personal funds

The mistake a lot of farmers make is that they do not view their business as a separate entity and because of this, they fail to keep proper track of their farm’s finances – let me highlight this with an example; I was keeping books for a certain farmer who had 1000 birds recently and through my financial analysis, I discovered that the farm was making an average of GH₵3,000.00 profit every month but I realized, the amount of money registered on my accounts as cash available, didn’t match what was actually available for the farmer so I asked the farmer why this was the case. He replied to me that he doesn’t know where all that money went since he believes he doesn’t live any luxurious lifestyle. Later, I advised him to draw a salary at the end of every month and create a dedicated bank account for his poultry farm. Thankfully, he took my advice and later testified that he now had better control of his finances.

Hire a bookkeeper to help you keep accurate financial records

Sure in the early stages of your business, you could easily track the finances of your business because

  1. You’re not making tens of thousands of Ghana cedis every year.
  2. You are not spending thousands of Ghana cedis per month on feed, vaccinations, fuel, etc.
  3. You do not have any issues with employee theft.

But as time goes on, you may need an expert to help manage the financial aspects of your business. It is normal for poultry farmers when they start, to feed their birds, collect eggs and at the same time deal with customers but as their farm grows, they find that they are easily stressed out and one way to avoid this is to delegate some of the duties to other professionals and the only way to know if your farm is profitable enough to hire more employees to save you some stress is to hire a bookkeeper. Also, consistent bookkeeping keeps your employees in check because they know that if they engage and any type of fraud, they will be exposed.

Carefully evaluate any loan being offered to you before you sign the contract

Yeah I know, poultry farming is a capital intensive venture and you may not necessarily have enough funds to finance your day-to-day operations so it is always nice to have an external cash injection once in a while but be careful. There are some predatory lenders out there who prey on some farmers’ financial illiteracy to charge exorbitant interest rates; some lenders can charge farmers an interest rate as high as 12% per month. Always remember, that loans are not for free so make sure you take loans from recognized lenders or speak to your financial advisor to evaluate your loan for you – PKOM Bookkeeping can help you with this.

Diversify your Revenue Stream

Sure, your poultry farm is making you a lot of money but do you think it is a smart strategy to rely on only one source of income? So what if all your birds are wiped out by avian influenza, does that mean if the government doesn’t come to your aid, your business and your source of livelihood must go down in the drain? My answer is no! I will advise that when your farm becomes profitable set some of the money aside for passive investments. Passive investment is a form of investment which may bring you regular income but does not necessarily require you to take an active role in it. For example, when you invest GH₵10,000.00 in Ghana Government treasury bills for one year, you expect a maturity value of around GH₵11,400.00 at a 14% per annum interest rate. In this example, you didn’t necessarily work for the extra GH₵1,400.00 but it still reflected in your account and the best part is there are different examples of passive investments that yield more interests than treasury bills: Renting out a house, buying shares in companies, index funds, etc., are all viable passive investment alternatives. But a little word of caution, you are not necessarily guaranteed to make money when you invest so I advise that you do due diligence before you put your hard-earned cash in anything.

Conclusion

The fact that poultry farming is a profitable venture doesn’t necessarily mean every farmer is going to end up rich. If you want to succeed financially in your poultry farming journey, I strongly suggest that you take the above-mentioned steps seriously.

How Excuses Kill Your Poultry Farming Ambitions

Introduction

Aren’t you surprised that in a world full of many opportunities only a few seem to succeed? Many a time, we tend to associate successful people with some sought of superhuman powers but is this necessarily the case? If you ask me, I will tell you that the difference between successful and unsuccessful people is simple – successful people are action-oriented while unsuccessful people are excuse oriented. In this blog post, I am going to highlight some common excuses people make and how it prevents them from pursuing their poultry farming dreams.

Lack of capital

This is the most popular excuse people make as to why they have not started their poultry farms yet. I don’t know what they are thinking. Do they expect some magical Good Samaritan to just pop up and hand them millions of Ghana cedis? I don’t think that will be very possible.  In this recent post I published, www.pkombookkeeping.com/2020/04/10/how-to-raise-money-to-start-and-run-your-poultry-farm-business/, I explained four different strategies on how to raise money to start your poultry farming business. None of these strategies come on a silver platter but that is what entrepreneurship is about – you have to figure out a way when others see no way.

Lack of knowhow

This excuse seems reasonable in hindsight but if you dig deeper into it, you find out that there is a serious issue about such an individual’s mentality. The last time I checked, no one was born with poultry farming knowledge planted in his or her head. Anything anyone knows was probably learnt by the individual – poultry farming is the same, it is a skill that can be learnt. Maybe, you want to learn about poultry farming but you do not fully understand the financial implications associated with it, we can help you with that. For only GH₵1,000.00 we can assist you in preparing a fully comprehensive business plan that includes all the necessary details you need to start your poultry farm. Let’s face it, if you are going to spend GH₵20,000 in order start your poultry farm, it will make a lot of sense to just spend 5% of that amount to properly plan ahead instead of risking losing all of your investment. That said, there are tons of resources out there that can help you with all the basic knowledge you need – follow our blog for free information on how to get started.

They are too busy

I have come across too many people who are interested in poultry farming but when you ask them why they haven’t started yet, they tell you that they work 9-5 jobs and that they don’t have the time to run a poultry farm. This line of thinking is erroneous because you can easily run a 200-bird layer farm with only one employee. All you have to do is draw up the necessary time table for timely vaccination and also ensure that your birds are given the right amount of food and water. Collecting eggs and disposing of the waste is also very easy especially if you are using the battery cage system.

Fear of disease outbreak

Some people believe that poultry farming is too risky and that even the slightest disease outbreak could wipe out all their birds. Well, that is true to an extent but if you follow all the necessary biosafety protocol associated with poultry farming, it is very unlikely that your farm will be affected by an outbreak. In this blog post, www.pkombookkeeping.com/2020/04/03/the-reason-why-you-should-treat-your-poultry-farm-as-a-serious-business/, I outlined some of the safety measures you must follow as a poultry farmer.

Conclusion

So there you have it. These are three of the main excuses people make to justify themselves of not being able to start their poultry farms.

Is This the Way Forward for the Ghanaian Poultry Industry?

Introduction

Poultry farming is a multibillion-dollar industry worldwide with an estimated value of over $200 billion which means there is a massive opportunity for any individual to venture into this business and prosper but are Ghanaian farmers truly benefitting from this ginormous industry?

Overview of poultry production in Ghana

The demand for meat and eggs in Ghana keeps rising significantly as our economy grows. For egg production, Ghanaian farmers dominate the market with almost no competition against them but when it comes to broiler production, Ghana is dangerously lagging and this must be considered a threat to national progress. According to the Ghana Business News website, Ghana imported 135,000 metric tonnes of frozen chicken from the European Union in 2017: the value of these imports is pegged at over $150 million. This excessive and unnecessary importation of imported and mostly low-quality chicken has come at a high price: a rapidly depreciating cedi and the stifling growth of local broiler production which could have produced tens of thousands of jobs every year.

We must change our mentality

In my view, most Ghanaians poultry farmers don’t dream big enough. Just recently, after doing some bookkeeping work for a client of mine, I found out that her farm was highly profitable so I suggested that she went for a bank loan to expand her business so that she could make even more money. Immediately I told her that, she began complaining that she would have to employ more workers and that she doesn’t want to pay more salaries – upon hearing that, I explained to her that for every GH₵100.00 extra salary she pays, she could obtain GH₵400 in additional profits but like most people, she didn’t listen. The problem is that many people are like her and even when there is genuine opportunity to grow and make more money, they reject it. Because of this mediocre mindset, our nation cannot produce enough chicken to meet the citizens’ demand and this has opened the floodgates for our country to be dumped with cheap and sometimes unwholesome frozen chicken from the USA, Brazil and the EU.

We must take branding and marketing seriously

I recently did a small survey and found that out of 100 people I sampled, about 95% of them said that they preferred the locally reared broilers to imported frozen chicken because the former tastes better and is of higher quality but still broiler farmers in Ghana complain of low sales volumes sometimes during festive occasions. Even though we cannot necessarily compete on price with foreign players yet, not all customers base their purchasing decisions on price alone. Go around, move from office to office, especially government workers’ offices and you’ll be surprised as to how many people will be interested in your products. But as always, start with a small number of birds so that you can effectively test the market and perfect your marketing skills. Also, try and take advantage of social media and the internet. At least, you must have a Facebook page dedicated to your farm so that you can reach more customers.

The Government must do more for poultry farmers

To be honest, the current government, though not perfect, has shown an intent to push Ghanaian agriculture forward. There have been numerous policies and reforms implemented to boost livestock production most notably, “Rearing for Food and Jobs” – the policy has many components but for this blog post, let me focus on broiler production; the government intends establishing ultramodern slaughterhouse facilities whereby they will purchase live broilers from farmers and process them (broilers) into the meat. By so doing broiler producers will have a ready market all year round and not necessarily have to depend on festive occasions but still there is more to be done. Mind you, I am not advocating for an immediate complete ban on frozen chicken imports. All I am saying is that the playing field must be levelled so that our local producers can effectively compete with foreign players – this can be achieved by placing higher tariffs on poultry imports and increasing subsidies on poultry feed, vaccines and medications for local farmers. Also, the government must actively support the application of science and technology by funding livestock research so that our local poultry landscape becomes highly productive and competitive.

Conclusion

Overall, the Ghanaian poultry sector is evolving but it is a shame that our local farmers are restricted to only the sale of eggs. I believe the measures highlighted above if properly implemented could help boost the poultry industry of Ghana, create thousands of jobs, and contribute to the overall economic growth of the country.

How to Raise Money to Start and Run Your Poultry Farm Business

Introduction

Poultry farming, like any other viable business model out there, requires grit and passion to fully execute but the truth is too many people out there dream of owning poultry farms but only a few of them end up owning one themselves. In this blog post, I’m going to highlight a few strategies you can take to secure funding to purchase equipment or to run daily operations.

Plan your business

In an earlier blog post I wrote, www.pkombookkeeping.com/2020/04/02/how-to-start-your-new-poultry-farming-business/, I explained that poultry farming is very broad so it may be wise that you decide which sector of poultry farming will best suit you. Furthermore, you have to understand the costs involved in your choice of production. Costs in poultry production include fixed asset costs and operational costs. An example of a fixed asset is a battery cage while salaries expense will be an operational cost. To learn more about costs involved in poultry production, I suggest you take a look at this post-www.pkombookkeeping.com/2020/04/07/how-much-money-do-you-need-to-start-a-poultry-farm/.

Bootstrap your business

Most poultry farmers in Ghana fund their operations out of their own pockets. This funding strategy has its unique advantages and disadvantages but the greatest benefit is that you maintain total control of your business and are not obliged to pay back any interest or give up any form of equity. This way, any mistake you make won’t be so catastrophic because you don’t have the obligation to pay back any loan. You can start with a few thousands of Ghana cedis out of your savings to purchase day-old cockerels and sell them off when they are matured. Here, you get to practice brooding, feeding, vaccination and marketing. This early-stage attempt at poultry farming will give you the necessary experience to pursue greater opportunities.

 Ask for help from family and friends

This is another popular way people raise funds to start their poultry farms. Sometimes, after gathering some resources on your own, you may realize that it is not enough to run your business so it may be a good idea to turn to your spouse, other relative or a close friend who loves you enough to want to see you succeed. But be careful when dealing with friends and family members because any wrong move may destroy your relationship. Family and friends should not be necessarily limited to giving you loans but they can also be your strategic customer – for example, when I founded PKOM Bookkeeping, I knew of a relative who was into poultry farming so I approached her and offered her bookkeeping and accounting services for free for almost three months. After the trial period, she became a strategic customer because she could pay me 3 months in advance for my services; this way I had enough money to pay my business expenses.

Fig1: Photo of a young man giving money to his friend.

Image courtesy Shutterstock.

Bank loan

If you happen to be a government worker or receive a salary through the accountants general’s department, then it is relatively easy to access a loan and you wouldn’t have to present collateral since monthly deductions would be made directly from your salary.  However, if you don’t work for the government, getting a loan can be challenging but not necessarily impossible. Banks are pretty risk-averse and would like to ensure that they don’t just dish out money to any average Joe – they want to make sure that you know your business inside-out. To be able to win the trust of banks, you must have a professional business plan, keep proper financial records and make reliable financial projections; PKOM Bookkeeping specializes in these. 

Fig2: A photo of an Agricultural Development Bank in Ghana.

Government grants or loan

Agriculture has been a high priority for this Akuffo-Addo led administration, therefore, there are tons of grants and loan facilities for poultry farmers (Hint: search on Google, “Government grants and low-interest loans for poultry farmers”) but you should bear in mind that these types of facilities are highly competitive and bureaucratic so it may take quite some time to get your hands on them.

Conclusion

Poultry farming can be very capital intensive, therefore you must try to explore different strategies through which you can successfully raise funds to have your share of this gigantic but rapidly growing industry.

Is the Poultry Sector Still Booming Despite the COVID-19 Pandemic?

Overview of coronavirus pandemic

Coronavirus disease 2019 also known as COVID-19 is a viral disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The disease was first identified in Wuhan, China and since then, it has now become a global pandemic with 1 million+ reported cases with over 50,000 deaths and around 219,000 recoveries as of 3rd March 2020. The outbreak of this virus has led to the cancellation or postponement of concerts, sporting events, fashion shows and has also led to the shutdown of schools and religious institutions worldwide.

Impact on the poultry industry

The worsening effects of the pandemic have forced governments all over the world to place some form of restrictions on freedom of movement – steps which have been taken to curtail the spread range from border closures, instruction of non-essential workers to stay at a home, to total nationwide lockdowns. These measures, however, have had their consequences. For example, the lockdowns have hit the hospitality and restaurant sectors hard – this has negatively impacted the broiler industry worldwide and has led to a drop in sales. Another serious problem affecting poultry businesses is disinformation – economictimes.indiatimes.com reported that the wholesale price of chicken had dropped by as much as 70% in India due to misinformation being circulated that chicken could spread the coronavirus. In Ghana, most poultry farmers especially egg producers, have largely been unaffected and also, feed manufacturers and distributors have been deemed essential so the partial lockdown which was implemented in some cities in Ghana have not negatively impacted farmers. However, uncertainty still hovers around the Ghanaian poultry sector because, if a nationwide lockdown were to be implemented, many Ghanaians could potentially lose their jobs which would result in the decline in consumption of chicken and eggs.

The way forward

As the pandemic rages on, poultry farmers have to ensure that they and their workers follow WHO guidelines as in, frequently washing their hands with soap and constantly disinfecting frequently touched surfaces to prevent infection. Also, farmers must be alert and try to use all media resources available to counter disinformation campaigns aimed at jeopardizing the poultry industry.

The Reason Why You Should Treat Your Poultry Farm as a Serious Business

Introduction

I get the impression that many poultry farmers in Ghana do not fully understand the amazing potential in poultry farming. When we hear of success stories such as Darko Farms, we tend to associate such success with luck or unlimited funding sources but there are some small yet crucial details that the majority of poultry farmers in Ghana tend to ignore which could pretty much determine whether they would become a success or not.

Never compromise on-farm hygiene

I find it surprising that after visiting many poultry farms in Ghana, I realize that they lack the most basic biosecurity feature, the footbath. This simple feature could save a farmer thousands of Ghana cedis if it is installed but a lot of farmers take this for granted. This kind of negligence could easily open the floodgates for dangerous pathogens to enter and infect birds thereby affecting farm productivity negatively. Also, always be sure to sanitize your hands with 70% alcohol before touching your birds as your hands could be a suitable reservoir for germs. Finally, ensure that shoes and clothes worn to the farm are separated from normal clothes. Once again never compromise on hygiene as it could potentially cost you your business.

Watch out for the amount of feed you give to your birds

You must know by now that the quality and quantity of your produce is as good as the quality and quantity of feed you give to your birds. Therefore, there must be enough feeders and drinkers and each pen to ensure that every bird can get access to the right amount of food and water. Furthermore, be sure not to overfeed your birds as this can lead to them being overweight and prone to cardiovascular problems. Again, overfed layers tend to lay fewer eggs on average so it is very important to give your birds the right amount of feed – not too much not too little.

You must ensure that you store feed and other materials properly

Another thing many poultry farmers take for granted is the proper storage of materials. Poultry feed is usually made up of maize which serves as a carbohydrate source therefore, it mustn’t come into contact with moisture as this could stimulate the growth of Aspergillus moulds. This kind of moulds produce dangerous chemicals known as aflatoxins, which cause cancer and liver damage in humans – you could imagine what could happen to your birds. Also, ensure that drugs and other vaccines are not exposed to direct sunlight since this could reduce their efficacy.

Never assume you are superhuman and therefore can manage everything

Yeah, I know that you are very passionate about your business and all but when your farm grows beyond a certain point, typically above 1000 birds, you must consider hiring experts to manage certain aspects of your business. In the very beginning, you had very little going on in terms of financial transactions since you had a relatively small amount of birds but now you have many customers, some purchasing your items on credit and others paying for your products in advance – at this point, you’ll require a professional bookkeeper to keep proper financial records for your business activities so that you can easily track the financial performance of your farm and also avoid disputes. Furthermore, other professionals such as a human resource manager, marketing executive and possibly a farm manager will come handy.

Lack of proper control measures 

Employees could make or break any business. This is why you should safeguard your business from potentially irresponsible behaviours from employees which could jeopardize it. One thing you should be very serious about if you are running a poultry farm is theft. You should always ensure that proper records of your birds, feed, equipment and money flow is properly kept to prevent or reduce theft and fraud. Also, put in control measures to ensure that your driver buys the exact quantity of fuel you have provided money for. It is very easy for drivers to pocket some of the money meant for fuel and since fuel cost is a significant expense, you must ensure that you get exactly what your money is worth.

Lack of passion for the job

My friend, if you are looking to make a quick buck, then poultry farming may not be your calling. This business might take anywhere between three to five years to be profitable enough to provide you with the kind of lifestyle you desire therefore if you are not passionate enough, it is very easy to give up when faced with challenges.  However, if you are not passionate about poultry farming, but still want to reap the benefits of this giant and fast-growing industry, you could always employ a farm manager to run things for you while you make money.

How to Start Your New Poultry Farming Business

Find your niche

Before you start your poultry business, you must, first of all, decide which sector under which you would like to operate. Options include opening a hatchery and then selling the chicks as day-old, buying day-old chicks to raise and sell them after six weeks, raising layers for eggs and production of chicken feed. Each sector has its unique advantages and disadvantages. For example, opening a hatchery means that immediately after the eggs hatch, you sell off the chicks as day-old meaning, you do not incur any additional feeding cost but to be successful in the hatchery space, you need your customers to trust that your chicks are of the utmost quality – for this reason, you may have some challenges competing with the already established companies since these companies have already taken years to build trust and customer loyalty.

Find a suitable location

Among the numerous factors which affect poultry production, the location of your farm is one of the most important to consider. You know, rearing domestic birds especially chicken, is almost like raising your very own children. You probably wouldn’t like to raise your children in a slum, would you? The same way, I’m pretty sure you wouldn’t like to raise your chickens in a noisy and polluted environment. Furthermore, consider whether your location is going to be residential or rural. I believe it will be a better option to locate your farm in a more rural area because chicken usually make a lot of noise and sometimes smell pretty bad – this could disturb your neighbours and you could end up being reported to the authorities.

Choose your farming system

If you want to make serious money from poultry farming, I suggest you consider the intensive farming system as that is more efficient, weather conditions could easily be controlled and protection of your birds from predators is almost guaranteed. Under the intensive system, you have two options to choose from; the battery cage system and the deep-litter system. If you want to venture into egg production, it is more advisable to opt for the battery cage system but if you want to produce broilers, you must choose the deep-litter system.

Register your business

Formalizing your business comes with many perks. When I ask some poultry farmers why they haven’t registered their business yet, they give me the usual, “oh I don’t want to pay taxes” kind of response. These poultry farmers are potentially missing out on numerous opportunities:

  1. The ability to gain easy access to credit
  2. The ability of owners to protect their personal assets in case the business goes bankrupt or is hit by a lawsuit. NB: this only applies to a limited liability company registration.
  3. The ability to properly brand their businesses
  4. The ability to gain access to well-respected institutions such as hotels and top restaurants.

Employ the highest quality staff

Let’s face it if you’ve gotten to this point you probably want to run a sizeable poultry farm which will make a lot of money for yourself and your family right? Well then listen up! You obviously can run your farm as a one-man show but if your goal is to grow very fast, then you must consider hiring the following professionals: a manager, bookkeeper/accountant, sales rep, marketing officer, driver and one or two labourers.

Market your products

After producing your broilers or eggs, the next step is to find people who are willing to buy your products. It is quite easy to sell eggs in Ghana but it is a little bit challenging to sell broilers. Before your start producing broilers, first, research your market and find out the particular seasons whereby broilers are in high demand. Usually, raising broilers provides a fast return on your investment. Broilers typically reach market weight in 6 weeks so if you can secure a contract with a hotel, restaurant or company, you could be receiving heavy checks every seven or eight weeks.

Why You Should Start a Poultry Business

Background info

Mass production of chicken meat and eggs began in the 20th century. Since then, the average consumption of poultry products i.e., meat and eggs has grown exponentially. Over the past decade, consumption of poultry in developing countries has surpassed 5% which is far greater than the population growth rate in the same period – this has presented a great opportunity for many individuals to escape poverty.

Poultry production as a source of high quality protein

Typically in many developing countries, some families, mostly rural raise local breeds of chicken to meet their protein needs. The chickens are reared using the extensive production system and are allowed to forage for their food – occasionally though, they are given supplementary food in addition to what they find for themselves. Because it is relatively very cheap to rear local breeds of chicken, families, especially low-income ones, have a relatively reliable source of protein.

Poultry production as a driver of economic growth

According to Bloomberg, the global poultry market is estimated to reach a valuation of $350 billion growing at an average of 3% from 2009. This means the poultry industry is a giant sector under agriculture and still growing. Furthermore, this is the best period to enter poultry production as the Ghanaian government has rolled out a new policy dubbed, “Rearing for food and jobs.” Under this policy, the government of Ghana intends to establish processing plants where they could buy broilers for local farmers and process them into the meat.

Poultry farming as a provider of job security

Since commercial poultry farming is a proven business model, venturing into it could make you a whole lot of money therefore this is a viable career opportunity for unemployed graduates to pursue. Also, you could easily do this as a side hustle to serve as a supplementary income to your 9-5 job. Furthermore, when you decide to take up poultry farming, you have the potential to provide direct and indirect employment to hundreds of people as your business grows – this will help lift a lot of people out of poverty.

Capital required to start

Contrary to popular belief, poultry farming must not necessarily be an expensive business to start as one can begin by rearing a small number of birds. Also, the space required for rearing poultry is not as big as other animals such as cattle or sheep. Furthermore, it is advisable even if you have more money, to start rearing a relatively small number of birds typically 200 day-old layer chicks if you want to produce eggs. From there, you gradually increase the number of your birds and expand your facilities.

Closing remarks

As you can see, it is very clear that poultry farming is a super lucrative business and if done properly, could change the fortunes of the farmer and society at large. So what are you waiting for? Start your poultry business now!