EGG PRODUCTION BUSINESS PLAN GUIDE
Egg production is an area of business that continues to attract tremendous interest from investors. These investors may or may not have the required expertise to handle the writing of a comprehensive business plan.
This article will seek to provide a guide on how to write a small scale egg production business plan.
Eggs are a very good source of protein in our diet. Hence it can be easily seen why the demand for poultry eggs is inelastic. Eggs are used widely in most foods and confectioneries.
Here is a business plan for the production of table eggs from poultry of 2,500 birds from point of lay for commercial production of table eggs by use of the battery cage system.
Read: Sample Egg Distribution Business Plan
In our business, 2,500 laying birds are housed in a battery system for one and a half years. After which the number will be increased to 5,000 birds in the second year. The number of growing birds is projected to increase in multiples of 2 annually.
Our professional knowledge of animal husbandry and experience in poultry farming gives us a competitive advantage when it comes to administering medications, health care, and feeding nutrition.
It is projected that at peak production in the first year of bird keeping about 60 crates of 30 eggs are produced daily, generating a revenue of about $273,750 per annum at the rate of $12.5 per 30 egg crate.
Other streams of income for this business are from the selling of the spent layers after a year and a half and also selling of the bird’s droppings from the farm for manure. Total gross revenue for could cap at $2,190,000 per annum from 20,000 laying birds.
As mentioned earlier, poultry egg consumption cuts across all spheres of people and industries. There are different forms of poultry production ranging from parent stock for meat, quail production, egg production, turkey, geese, and ostrich farming.
Other specializations in the trade are brooding, liquid egg packaging, and point of lay, retail of eggs, hatchery and selling of day-old chicks and so on. Our area of interest is poultry egg production.
The poultry egg production business is all about the rearing of egg-laying birds from a day old to 14 weeks. This could be done either in a caged system or an open system. In the caged system, the birds are transferred to their cages from their nursery where they were kept as chicks. Feeding and medication are administered daily and periodically to the birds.
From Weeks 19-22, the birds start to lay eggs.
To simultaneously create wealth and generate employment by producing high-quality poultry eggs.
To use state of the art technologies to create an effective poultry egg production system.
Wealth creation by poultry farming
Critical Success Factors
Expertise: Professionalism and technical knowledge of bird keeping are highly imperative. Training of farmworkers and hiring of professionals is sacrosanct. Bird keeping is a very risky business without professional knowledge of the rules of the game.
Funds: Before starting an egg production business you must be careful to make sure you have the right amount of capital you need. Calculations need to be made as to the total amount of feed the birds will consume from inception to when they are spent. Breaking their feeding routines will adversely affect egg production.
Bio-security: The poultry farm must be protected against disease pathogens and vectors. This is achieved by placing wire meshes on all entrances, sterilization foot baths, and car baths, also restriction of un-authorized persons from entering.
Housing: Good ventilation is of paramount importance. The position of a poultry house to access ventilation is very essential. Furthermore, adequate spacing is a very critical success factor.
Water: Clean water should be made available to the birds constantly. It would be pertinent to have a close source of clean quality water for the pen’s operation.
Feeding: Care must be taken to provide the birds with the adequate nutrition they require to function. This would include the right amount of vitamins and medications.
Management: Workers should be closely observed to prevent cases of pilfering, indulgence, misappropriation among others.
A typical day starts by 6:30 am. Workers come to the pen and fumigate or apply disinfectant to the foot baths and car baths respectively. They then change into their overalls and disinfect themselves by washing their boots and hands in the disinfectant. Next, each nest is observed for fatigued, sick or dead birds. I found the birds are quarantined and recorded. Due diligence is carried out to make sure water flows un-interrupted in the pen.
Next, a measured amount of feed is applied evenly to the birds. After that, the eggs are collected in baskets or crates. The total number of eggs collected is recorded along with the morbidity rate, mortality rate, and any other abnormal behavior observed.
Strategy and Implementation
Quality eggs from the farm are taken to a depot where the products are sold to consumers. Advertisement of our eggs is spread by word of mouth and on social media.
It is projected that for the first year the financial projection for the egg production business will be as follows.
Year # of birds Projection
First Year 2,500 $273,750
Second Year 5,000 $547,500
Third Year 10,000 $1,095,000
The egg production business plan is a summary to give readers who wish to go into poultry farming and in particular egg production and sales, a head start. If done properly with all due diligence, it could spiral into a money-spinning business.