Sample Chicken Egg Hatchery Business Plan


Starting a chicken hatchery business is not as tedious as it seems. It is a very good agribusiness to get into.

Chicken and eggs are largely consumed by many people around the world as a staple protein, that is why it is advisable to learn how to start a chicken hatchery business if you want a regular source of income.


If you have capital and you have been looking for a profitable business to invest in, you could start a chicken hatchery business as it is very lucrative. Even if you don’t have the experience or expertise, it doesn’t take too much time to learn about it.


What you Need to Start a Chicken Hatchery Business

To start a chicken hatchery business, you’ll need;

  • A business plan
  • Capital
  • Space (land)
  • Equipment
  • Knowledge of the business or experience
  • Reliable supplier
  • Consistent water supply and electricity

Step 1: A Hatchery Business Plan 

This is the first requirement to starting a successful chicken hatchery business or any business at all. You will need to create a proper business plan after doing your research about the business. This chicken hatchery business plan will serve as a guide in the running of the business.

Aside from that, it can also be used to request for a loan from financial institutions.

Step 2: Capital

You have to buy land, equipment, eggs, and attend a training if you are new to the business as the business demands specific skill. The amount of capital you will need will depend on the size of the chicken hatchery business you want to start. Starting a chicken hatchery business requires a huge capital investment.

So, you may need to seek for loans to get started if you are short of the needed cash. This is where your business plan comes to play. As far as your business plan is well written and explains in detailed what the investor needs, satisfies the investor, you are certain to get your loan request granted.

Step 3: Space (Land)

The land is crucial to this business, but not just any land. If you’re buying land make sure it is a higher ground. The poultry shed requires enough of space for the birds to be able to move about freely. The chicken hatchery business needs at least 2500 sq. ft. Get a place devoid of pollution with lots of fresh air. It should also have a proper drainage system.

Make sure everything is well set up, from where the equipment will be kept, to where the chicks would stay. It shouldn’t be cramped.


Step 4: Equipment

You can’t do without equipment if you want the business to run smoothly. These are the equipment you will need;

  • Automatic egg hatcher
  • Brooder, feeder, waterer
  • Egg Debreaker
  • Egg tester (electric)
  • Egg setter
  • Weighing balance
  • Generating set
  • Air conditioner
  • Refrigerator
  • Bowls, trays, buckets, baskets
  • Veterinary instruments

Step 5: Knowledge About the Business

If you do not have any previous experience, you could go for training or take courses. However, if you do have experience, you can still go for a mini-seminar to brush up your skills and expertise. Alternatively, if you know someone into the business, you can visit and talk to them so they can educate you about the business and how to go about it.


Step 6: Reliable Supplier

Whether you intend to buy eggs or chicks, getting it from the right source is important. Purchase your eggs and chicks from reputable farmers. This helps to sustain your chicken hatchery business in the long run because you are going to produce quality livestock.

Step 7: Consistent Water Supply and Electricity

Some of the equipment you will be using for the business will require constant power supply to function continuously. Adequate and clean water supply is essential. Change their drinking water frequently to prevent them from falling sick.


After buying your one-day-old chicks. Feed and care for them properly till they get to the laying stage. When they have laid the eggs, take it to the hatchery department. Clean the eggs. Separate the cracked eggs, and remove the unfertile eggs.

Find out if the eggs are suitable for hatching. Keep them in an air-conditioned room to reduce the temperature to make it suitable for hatching. When the temperature has been brought down, put the eggs in the egg setter incubators.

Leave them in the incubators for 18 days, by the end of the 18th day, keep the eggs in the holder incubators and incubate them for 3 days. This makes a total of 21 days. After 21 days, your chicks are ready to hatch- they break the shells and come out. Such a beautiful sight to behold!


Now that you know what it takes to start a chicken hatchery business, it wouldn’t be a bad idea to start. Chicken is in huge demand and it has a wide market. You can start your chicken hatchery business locally by supplying to poultry farmers who rear chicks (growers).

When poultry farmers in your vicinity know they can get quality chicks and eggs from you, they’ll keep coming back and your business will grow. Knowing how to start a chicken hatchery business is not enough, other factors like proper planning, management and care of the livestock are equally important. Investing in the right equipment makes it easier to run the business and minimizes losses.


You cannot do it alone. Hiring the right staff who are exceptional in their various roles will be of great benefit to the chicken hatchery business in the long run. Make it a point of duty to be knowledgeable about the various aspects of running a chicken hatchery business and watch your business grow in leaps and bounds.


Here is a sample business plan for starting a poultry hatchery business.

The agro-allied industry, of which poultry is a subset of, is increasingly drawing the attention of investors and entrepreneurs. There have been huge investments in this agro sector, with impressive results to show for this.

This hatchery business plan will be treated under the following sections;

Table of Contents

  • Executive Summary
  • Products and Services
  • Vision Statement
  • Mission Statement
  • Target Market
  • Competitive Advantage
  • Payment Channels
  • Publicity and Advert Strategies
  • Sales Projection
  • Source of Revenue
  • Source of Startup Funding

Executive Summary

Evans Hatcheries is a hatchery business located in the heart of Washington, which will be providing high quality hatchery services covering a wide range of poultry birds. There is an increasing demand for quality poultry products and to achieve this, the responsibility lies on the hatchery sector. It is in recognition of this that we have put in place a business model that will ensure that only the best products are released to the open market.

To achieve this, we have put in place a world class quality control department and laboratory to ensure that only industry best practices and procedures are adopted. We have also established an efficient marketing department to strategize on an efficient distribution strategy for our products and services.

Products and Services

Our hatchery business has in place the best hatchery facilities which cover a wide variety of bird types that include turkey, chicks (consisting of broiler, layers and cockerels) and ducks. Because this business depends on eggs, we are putting in place a 5,000 capacity poultry farm with a variety of birds that include chicken, turkey and ducks.

However, this will not be currently sufficient for our hatcheries, as we have plans of further growing our egg production capacity. Therefore, we will be purchasing our egg needs from external sources (other poultry farms) for the main time.

Vision Statement

Our vision at Evans hatcheries is to be among the top hatcheries within the DC area, with an expansion plan of extending our operations across other states within the United States. We plan on being among the top hatcheries in the United States within a decade from the time of commencing our business operations.

Mission Statement

We are into the hatchery business to make profits. However, this is not our driving force alone, as we believe that we also believe in service excellence. Therefore, our clients are our primary focus. We will be addressing the problem of low quality chicks encountered by farmers which has significantly increased the mortality rate, thereby reducing the profit margin for farmers.

Our Target Market

Our target market is quite extensive, as we will be mainly focused on the production of quality birds for other poultry farms, individual poultry farmers, as well as entering into a mutual relationship with other contacts within the industry to get maximum exposure to market demand. In addition to this, our hatchery business seeks to engage in price matching with similar businesses to offer competitive pricing for our services and products.

Competitive Advantage

To compete effectively in the hatchery sector, we are putting in place certain conditions not commonly available in similar businesses. Such include an enhanced welfare package for our workforce to ensure increased dedication which results in increased productivity. Our quality control unit will be of the highest quality to make way for the provision of the best products and services to our clients.

Payment Channels

This will be varied and diverse, as we will be deploying every available payment system to ease the stress related to the payment for services. These will include the use of the POS machines, the acceptance of cash payments, use of credit cards, receipt of cheques as well as the use of internet banking among several payment options.

Publicity and Advert Strategies

We will reach our target market through the adoption of the most effective publicity and advertisement strategies. These will include the use of internet tools such as building a website, using social media tools for effective exposure and also the adoption of the print and electronic media channels. Word of mouth marketing should not be ignored as it is still an effective publicity and advertising tool.

Sales Projection

Using the current economic realities, we have conducted a research on possible sales projection, and the results so far have been impressive. This projection covers a three year period and the results are shown on the chart below. It will be important to note here that unforeseen circumstances such as natural disasters and economic recession have been discounted at arriving at the results.

  • First Year $390,000
  • Second Year $500,000
  • Third Year $710,000

Source of Revenue

A bulk of revenue generated for the business will come mainly from the products and services offered by our hatchery business. As time goes on, we intend creating additional income streams for the business to add to our revenue generation diversity.

Source of Startup Funding

Funding for this business will come partly from savings set aside by the owner of the hatchery business (30% of the required funds) while the bulk (70%) of the funding will come through debt financing arrangements.

Read: Starting an Egg Wholesale Business

This poultry egg hatchery business plan sample provides a guideline for the entrepreneur/investor to work with. The information provided here can be used for guidance purposes only, as the entrepreneur will need to carry out an intensive brainstorming sessions to come up with realities faced by his/her business while adopting the structure of this business plan.

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