Cost Of Starting a Poultry Farm In Nigeria: Poultry is the branch of Agriculture that is concerned with the totality of rearing domestic fowl such as chickens, turkeys, ducks, geese, etc for raising of food (either meat or egg) and for production of raw materials. The term poultry is used to refer to the meat from a domestic fowl. A person who deals on poultry is referred to as a poulterer. Poultry is a highly lucrative business in Nigeria, just like every other aspect of agriculture.
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Table of Content
Why Is Poultry Business Considered Lucrative?
A business is considered lucrative if it yields adequate profit. Poultry products are generally accepted in the market economy and this contributes to its lucrative nature. Asides the market recognizance, poultry products are recommended health-wise. Unlike red meats from other animals, poultry produces are white mats and are highly recommended.
Poultry products are proven to help in the production of iodine for thyroid hormone function, vitamin B12 which is beneficial to the nervous system, Iron contributing to the smooth carriage of oxygen, omega which protects the heart and brain, and the aid in the production of Zinc which boosts the immune system, promotes healthy skin and the reproductive health systems.
Poultry business affords one the opportunity for employment. Owners of poultry farms can employ poulterers to manage the farm. Labourers and transporters may also be needed and employed for the carriage of the produces. Again, poultry business is a two-way power.
This is so because it is not necessarily a full-time business. It therefore affords one the opportunity to engage in other businesses while in the business of poultry. For instance, a person employed in a public office can as well own a poultry farm and apportion the time for its management accordingly. Starting up a poultry business need not be in a large scale. All these together qualify poultry as a lucrative business.
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Breakdown of the Cost Of Setting Up a Poultry Farm
The cost of setting up poultry business certainly depends on the specific fowl type and the specie intended to be ventured into, the cost of living in the place of the intended business and that of the supplier, and the scale intended to be started at once. What is demanded for setting up and running a poultry farm includes the four factors of production; land, capital, labour and entrepreneur.
One who intends to start up poultry business in Nigeria must center his capital on the acquisition of land and labour. He should as well have a working capital, investment capital and contingency capital. The capital requirement for starting up a poultry farm in Nigeria shall now be discussed accordingly.
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Land is the primary factor of production. It is as such a primary factor for starting up poultry farm in Nigeria. In essence, the first consideration to secure in setting up a poultry farm is land. Land can be acquired through gift, lease or outright purchase.
When the land is acquired as a gift, it bears no cost asides the cost for preparing the deed of gift which may range from ₦50,000 upwards or below, depending on the number plots and the location. For lease and outright purchase, one should budget from ₦150,000 – ₦3,000,000.00 for one plot of land. The price will always depend on the location and the value of the land at the point in time.
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Having acquired a land, the next is to erect structures on it. Erecting structures for poultry ordinarily should not cost greatly. All that is required is to erect a fourth wall building although some may choose to partition the building. The building need not be a tall one as long as it is well ventilated. The blocks need not necessarily be plastered although it is recommendable for longevity of the structure.
It is also very necessary to roof the structure and include window shield such as wire gauze. Moreso, the poultry farm needs to be well ventilated and it is necessary that this should be observed starting from the structure of the building.
Another option aside raising a building is to build or bug cages. For raising of structure or building of cages, ₦300,000 – ₦500,000 should be budgeted which if course may vary to the size of the empire and the cost of living of the location.
Purchase of Equipment and Fixtures
In starting and running a poultry farm, one would be needing certain poultry equipment which includes; feeder, water pot, heater, egg handling nest, laying nests, crates, coops and cages, perches, chick box, incubator, beak trimmer, cleaning tools such as rakes, sprinkers, and so on.
All of these equipment may not be necessary for a small scale poultry business, in such case they can be acquired selectively in order of importance.
For the acquisition of these equipment generally, one should budget up to ₦500,000. Discount could be gotten on the basis of ‘the higher the quantity the lower the price’. For fixtures, electricity ordinarily should not cost much. A budget of ₦50,000 – ₦250,000 should cover the cost depending on the scale on the business, the location and cost of living at the given period.
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Purchase of Chicks and Chickens
This is the subject matter of all the investments. The purchase of a day old chick should cost within the price range of ₦500 – ₦1,000. For grown chickens, the budget should be at about ₦3000 for a piece on wholesale, and of course the price may vary by the stage of the chicken, the breed and the season of purchase. Undoubtedly, poultry produce are costlier during festive seasons.
Feeding and Medication
This is a very important cost put into consideration at pegging the price of poultry products. The price of the feeding and medication directly affects the price of poultry commodities. Where the price for feed is high, both the wholesale and retail price of the poultry bird is affected.
The price of feeding isn’t always friendly, although there could be home-made feeds. But for feeding generally, one should budget up to ₦15,000 for 50 birds in one month. Another important cost is the cost of medication. Birds can be prone diseases, some which can be infectious or contagious from one bird to another. The birds therefore are to be placed on strict health observation at all times.
This is a sustenance measure to the poultry business, otherwise, a high mortality rate of birds increases the chance of the business failing. So, a good portion of the invested should be directed towards vaccination and medication of the birds. Sometimes there might be need to engage a veterinarian. The budget for medication and vaccination should be up to ₦15,000 for 50 birds.
Cost Of Security
Another cost worthy of consideration is the cost for security. This includes the necessary measures taken to protect and prevent the moving or taking away of the birds whether by it being stolen or by them being found missing. Therefore, there would be need for wire gauze protection which counts to the cost of building.
Other security measures include strong doors and padlock. Another is the security against dangerous animals such as snakes. Certain kinds of snakes are attracted by chickens. There should be periodic precautionary spraying of snake repellant in the surrounding or planting of certain flowers that repels snakes around the building. This usually would not cost much; ₦5,000 should cover the expenditure for a 50 bird poultry.
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The cost of starting up a poultry farm will always depend on these three factors; the intended scale of the business, cost of living in the location of the supplier and the poulterer, and the species of bird intended to be ventured into. Another factor to greatly consider is the risks involved in the running of poultry farm.
Being informed on the risks enables one to take precautionary measures right from the start. With the discussion above, one who intends to start up a poultry farm should have a clue of the budget.
Edeh Samuel Chukwuemeka ACMC, is a Law Student and a Certified Mediator/Conciliator in Nigeria. He is also a Developer with knowledge in HTML, CSS, JS, PHP and React Native. Samuel is bent on changing the legal profession by building Web and Mobile Apps that will make legal research a lot easier.