Business plan for breeding chickens and organizing a poultry farm

Today, as a small business, it is very popular among rural and rural residents. First of all, it is for this category of blog readers that the proposed business plan for breeding laying hens is intended.

Data from organizations involved in the collection and analysis of statistical information show that poultry meat, and in particular chicken meat, is in high demand among consumers. The main criteria for such "popularity" are the high palatability of chicken meat, lower cost compared to beef or pork. Sales of chicken eggs have not yet seen a worthy alternative on the Russian market.

Despite the fact that chicken production volumes are increasing literally every month, and chicken breeding as a business is practiced in every 3rd private farmstead, up to 20% of imported chicken products are observed on the shelves of Russian retail outlets, which may indicate the inability of domestic poultry farms fully provide the domestic market with its products.

This factor is of great importance for aspiring entrepreneurs who want to start a chicken breeding business. Among all poultry, it is chickens that are the most unpretentious in care, and it is chicken products that are in greatest demand among the population.

And yet, despite the serious demand for the products of chicken farms, it is advisable to have a competent business at hand before organizing a business. Firstly, this document will clearly show the profitability of the project, help to understand whether it is profitable or not to breed chickens, and secondly, it will allow you to avoid the mistakes that are common for novice entrepreneurs.

Summary

This project is a description of the organization of breeding laying hens, own poultry farm with a payback period of the project 1.5-2 years.

Project goals:

  1. Creation of a highly profitable enterprise
  2. Organization of obtaining a stable profit
  3. Satisfying the consumer market for chicken eggs and chicken meat.

Project funding source: own funds or bank loan

Form of doing business: Sole Proprietor or KFH

The total cost of the project: 400 - 900 thousand rubles

Payback period: 1.5-2 years

Included in the calculations interest rate: 25%

The total interest payments will be: 150 - 450 thousand rubles

The investor's income will be: 150 - 450 thousand rubles

Payments of loan funds and interest on the loan will begin from the first month of the project.

Main stages of project implementation

The beginning of the project implementation - immediately after the acceptance of the business plan by the Customer, or after receiving credit funds.

The main stages for the implementation of this project, the conditions and terms of their implementation are presented in Table No. 1:

Project stagesConditions for their implementationDeadlines for the implementation of the stages
project start 1 month
obtaining borrowed fundsavailability of the appropriate package of documents1-30 days
entering into the USRIP, tax and administrative registrationIP education1-30 days
purchase of premises, paperwork 1 month
purchase and installation of equipmentgetting a loan1 month
hiring 1 month
conducting a marketing campaign all the time

General characteristics of the project (description of the company and services provided)

Poultry farming, and in particular chicken breeding as a business, has two main goals:

  1. providing the consumer market with chicken meat:
  2. and supply of chicken eggs.

There are some "applied" moments in the form of the sale of chicken feathers and down, the sale of live chickens and chickens to farms, and the collection of chicken manure for the production of organic fertilizer.

Based on these goals, it is easy to determine the final consumers, these are:

  • grocery stores;
  • farms;
  • private persons;
  • enterprises for tailoring clothes, bed linen, etc.;
  • organizations engaged in the production and sale of fertilizers.

Conventionally, the organization of raising chickens can be divided into several stages, the first of which will be -

Business registration

Mainly, it is necessary to sell their own products. Not a single grocery outlet will accept chicken eggs and meat for sale without a veterinary opinion and a quality certificate.

When concluding a contract for the sale of chicken poultry products, the business owner undertakes to deliver his goods on time and in the proper amount. That is, the number of birds in your poultry farm can be presented immediately. An increase in sales volume entails an increase in the number of birds on a poultry farm, and hence the necessary financial investments.

As a rule, poultry farms are registered as an LLC (limited liability company), or a peasant farm - a peasant farm. In this situation, there are no special significant differences between these two forms of doing business, except for two important points:

  1. KFH is obliged to own a land plot for its activities, the size of which is determined by the laws of the constituent entities of the Russian Federation, while an LLC can conduct business on a leased land plot;
  2. different taxation and obligations to the tax service. For KFH, the rules for paying taxes are identical to individual entrepreneurs. For LLCs, the legislation has its own directives.

The choice of breed of chickens for breeding

Breeding chickens must begin with determining the breed of bird that is best suited for growing in this particular region. It is also necessary to choose a priority for the business - which will be more profitable - breeding laying hens for eggs or broilers for the supply of chicken meat.

However, most chicken breeders divide the livestock in half - 50% of laying hens, 50% - meat breeds. Today, breeds of chickens from various countries have successfully taken root in our country, but breeds grown in Russia for a long time have the greatest adaptability.

Comparative characteristics of various breeds of chickens are presented in Table No. 2:

Chicken breedEgg production, pieces per yearAverage weight of eggs, gPreservation of eggs, %
newgenbrown351,1 61,5 99
highsex346,1 61,7 96
lohmann338,9 62,5 99
isa brown342,1 61,6 98
high-line336,6 61,9 98
super nickname330,1 62,3 96
tetra330,1 62,1 95
bovans326,8 62,7 96

With the right choice of breed of egg-laying chickens, one bird can lay up to 300 or more eggs per year. They begin to rush at the age of 40 days, this period will last up to 2 years, after which it would be advisable to put them on meat, replacing them with younger birds. It is also possible to separately raise chickens that lay exclusively dietary eggs. All that is required is to keep them in a cage alone, without a rooster.

Building a poultry house

The size of the poultry house depends only on the number of birds on the farm. Although it is better in advance, if there are plans to expand the business in the future, build a larger poultry house. In order to save money, chicken cages can be made on your own, there is no particular difficulty in this.

The best option is a nest cage with an egg collector in which the chicken rushes and incubates eggs, unlike perches, during the construction of which eggs have to be searched throughout the house, in addition, there is a possibility that the eggs will be crushed by the birds themselves. An egg collector is provided in the nest to prevent damage to the eggs. For rearing chickens, plywood or cardboard boxes are usually used.

The nest cage must be filled with straw, hay, or other similar filler. It is not difficult to make such a design yourself, or by hiring a good carpenter. In any case, it will cost much less than buying nest cells in a store.

For this, a metal, better galvanized mesh with a mesh size of 35 * 35 mm is used. For example, for 500 layers, you need to make 10 blocks of cages stacked on top of each other in order to save space, then you need to purchase 4 rolls of such a net. For the construction, you will also need metal fittings, plywood sheets with a total area of ​​​​approximately 7 square meters. meters, and several sheets of iron with a total area of ​​15 sq. meters.

Acquisition of chickens

It is better to start breeding laying hens by buying 1.5-2 monthly birds, precisely at the time when they are just beginning to wear out, in order to get the maximum profit from them. Chickens of a suitable age can be purchased at agricultural fairs, markets, or poultry farms with a positive reputation.

You can also use ads on the Internet or print media. Bulk buyers often get good discounts. But in any case, you should always deal with sellers about whom you can find out the reviews of other people.

Very often, inexperienced novice chicken breeders come across that they are sold young cockerels instead of chickens. In order not to get into such a situation, you either need to learn how to independently determine the sex of the bird, or invite help when buying an experienced poultry farmer.

In order not to constantly buy young birds, you need to purchase your own incubator, and regularly let males go to the chickens. There is a standard according to which it is customary to keep one rooster for 4 hens. For brood of chickens, you need to take eggs from birds aged 2-12 months.

The incubation period lasts approximately 21 days, and the survival rate is about 80 eggs out of 100 pieces. Of these 80 chickens, they may turn out to be sick and weak, which will subsequently die, approximately 8-10 individuals. The ratio of males and hens is approximately 50 * 50. It is these calculations that should be taken as the basis for the analysis.

Growing chickens requires special conditions in order for the bird to feel good and their egg production to reach its maximum. The most important thing in a poultry house is the light and temperature conditions. Although the chickens themselves tolerate low temperatures quite well, for eggs and small chickens it is necessary to keep the house warm at least +20 0. The permissible humidity in the room should be from 60 to 70%, and daylight hours with the help of artificial lighting should be “extended to 16-18 hours a day.

When installing lighting, it must be taken into account that too bright light is harmful to birds and their offspring, so it is best to use either fluorescent fluorescent lamps or several ordinary low-power incandescent lamps.

Every day, in order to prevent diseases, it is necessary to carefully examine chickens, remove droppings, clean cages, etc. Bedding in nest cages can be changed every 7-10 days. Diseases of chickens are the main risk in this business. That is why cleaning and inspection should be carried out strictly according to the schedule.

Chicken feeding

Despite the fact that chickens are known to be extremely unpretentious in food, in order to achieve maximum results in the goals set for the poultry farm, the bird must be fed with a balanced compound feed for poultry with a high content of proteins and trace elements. In summer, it is advisable to keep chickens free-range, in addition to the obligatory two-time feeding per day. During the day, one chicken eats an average of 100 to 150 grams of feed.

Newly hatched chicks need to be fed with finely chopped hard-boiled eggs, chiseled breadcrumbs, cottage cheese, chopped herbs. You can add to this a special compound feed for young animals aged from 1 to 10 days.

Marketing plan

Currently (2016), breeding laying hens for eggs as a business is not only a profitable project for a private individual, but also of strategic national importance as part of the development of an import substitution program.

Growing chickens, despite the huge popularity and demand for products, is in Russia at an extremely low level. At the end of 2015, the profitability of breeding poultry for meat was 15-17%, poultry for egg production - only 10-12%. According to industry experts, for the successful operation of a poultry farm, profitability should be at least 20%.

The existing difference is explained by the fact that much less funds are needed to breed poultry of meat breeds than to produce eggs. The same is true with technology. Private entrepreneurs do not have the funds to modernize this area, so they have to work with old equipment and old "village" methods.

Although, as the practice of a few poultry farms shows, when introducing new poultry breeding technologies and installing modern equipment, business efficiency can be increased several times.

The pricing of eggs and meat directly depends on the cost of feed, poultry farm equipment, road transport, and many other factors. Therefore, in the next year or two, stability in the price of chicken products should not be expected. This trend requires constant monitoring of the market for the prices of similar products from competitors, the emergence of new buyers, etc.

It is also necessary to regularly carry out various activities aimed at forming a positive opinion among the consumer about the products. These tools can be:

  • advertising in printed periodicals, specialized, and thematic publications;
  • conclusion of contracts for the supply of own products to canteens of schools, kindergartens, hospitals, private and large chain stores, cafes, restaurants, and other catering establishments;
  • creation and development of own Internet resource;
  • creation of working conditions and developed infrastructure.

Production plan

Since most of the necessary equipment can be constructed from “improvised” building materials, relatively little is required to start a business:

  • centrifugal dust fan for airing the poultry house;
  • lighting equipment for poultry farms;
  • automatic drinkers;
  • devices for cleaning the premises of a poultry farm.

Financial section

The main taxes payable are shown in Table No. 3:

Type of taxtax basePeriodInterest rate
income taxIncoming profitMonth20%
Property taxEstimated value of the propertyAccording to the payment schedule2,2%
VATAdded valueMonth18%
Income taxpayroll fundMonth13%
Social paymentspayroll fundMonth34%

The product sales plan is presented in Table No. 4:

PeriodProduct typeSales volume, thousand pieces per monthPrice, unit of production, rub.Sales proceeds, thousand rubles
1-12 monthImplementation of chickens,
roosters and laying hens
from 125from 85from 8125 - 15000
1-12 monthSale of eggsfrom 3750from 30 rub. for a dozenfrom 1125 - 1350
13-24 monthImplementation of chickens,
roosters and laying hens
from 300from 90from 21000 - 36000
13-24 monthSale of eggsfrom 9000from 35 rub. for a dozenfrom 3150 - 4000

Conclusion

The analysis carried out in this business plan showed that the project for breeding meat and egg chickens is currently highly profitable in our country. Products have a consistently high demand. Bird diseases are the main risks. With the skillful organization of the poultry farm and competent management, the project is quite capable of realizing the intended goals within the specified time frame.