The start of commercial poultry farming business is capital intensive and rigorous. It is termed a prospective and lucrative business. Poultry business may vary from basic domestic poultry keeping to mechanised and automated production plants. The benefits of poultry bird business are huge. Raising different types of poultry birds at a commercial level helps to harness its meat (Broilers), eggs (Layers), feathers and excretes for fish business (Seidler 2003).
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In this kind of business, there are high returns every year as the birds can be used for meat, egg and ornamental, high global demand, easy marketing, income and employment opportunity and it does not require high maintenance. Farm eggs are essential to human lives as it gives necessary nutrients which helps in our daily lives. Farm poultry birds lay these eggs we consume. In order to increase the number of eggs produced per day so as to meet up with the needs of the industry and homes, more poultry birds are needed. There are various sections of the poultry business production of the birds which helps to increase the production from Nursery and incubation, layers and boilers, egg production, feeding and managing poultry excretes to the management of personnel and the business.
1.2 The Technology
The main factor that differentiates this poultry system from any other commercial poultry is the use of technology. This technology will however improve the production rate, reduces expenses and expand the birds life expectancy rate. Commercial poultry farm production entails full-time labour and is geared toward producing sufficient quality and quantity of eggs and meat. The production process consists of poultry meat and egg production. In producing the egg, specialised employee are deployed to manage such aspect. During the egg production an integrated aspect of production is required and thus involves mechanization and automation of the egg production cycle process with battery egg laying, temperature controls, scientific feeding and mechanized egg collection.
Samer (2002) identified that the trend in poultry production is toward large commercial birds and with it comes with an increased mechanization in order to save time and labour. He went further to point out that equipment common to poultry business includes mechanical cleaning equipment, automatic and semi-automatic feeding and watering equipment. Using these equipment makes it possible for large number of bird to be handled in the operation. For optimum nutrition, controlled feeding and automating a controlled feeding system for broilers is beneficial step and should be applied in poultry business (Samer 2002).
However, the four major factors to be considered in rearing and maintenance of poultry birds are ventilation, temperature, water and feeds. Ignoring any of this may lead to high death rate of the fowls. These four main factors are some of the reasons why there are too much expense on poultry farms especially in a commercial one where most of the expense will be on paying salaries of labourers who feed and maintain the animals environment. Meanwhile, any delay in this activity due to human failure may results in loss of the poultry birds. This technology is developed to automatically control the rate of ventilation, temperature, feeding and water system of a commercial poultry farm as explained below:
It is the process by which a device is used to monitor and control the flow of fresh air into the system. If the fresh air in the system is low, the device will automatically switch on the flow of air into the system. It will also remove polluted airs out of the system whenever such cases are detected in order to decrease the rate of bad contamination through air.
Manual inflow of air to Poultry farm: Snap shot from Big Book (2019)
The device is an automatic air sensor that determine if certain area of the system require fresh air in abundance or check if air needs to be extracted from an area due to pollution and some other factors. In this case, the required switch will automatically be controlled ones the requirements are satisfied.
Benefits of Ventilation device
This will limit death rate of poultry birds as a result of decrease in disease transferred through polluted air. Availability of fresh air when needed will increase the life expectancy and production rate. However, the rate of spread of disease too will be minimize.
Just like ventilation, the temperature device will help to control and manage the particular amount of temperature required at certain stage of the poultry animals since different stages of development of poultry birds require different amount of heat. For instance, a day old chick will have different temperature to 3 months old foul. Meanwhile, climatic condition is another factor that alter the rate of temperature. Therefore having a technology device to regulate and maintain normal temperature for each developmental stage will go a long way in increasing the life expectancy a nd production of the poultry birds.
An automatic water replacer will be used to replace polluted water with a clean one. This will be done by installing a sensor to detect if certain requirement for the replacement to take place. In replacing dirty water with clean one, the rate of flow of disease through water will be minimized which will lead to increase in production and life expectancy rate.
A sensor can be installed to determine if feed is required at certain feeder’s location. The sensor will alert officer in charge for food shortage. This will help to ensure that no animal is lacking good nutrition.
In conclusion, implementing this system will improve the health of fowls and also increase the production rate which as a result will generate more revenue more than its equivalent poultry farm without technology.
1.3 Value Proposition
The value proposition of the business is a clear articulation of the characteristics of the business that includes the product and services as it is perceived by the customer. Domestic birds such as chickens, chicks, turkeys and geese produce very important and a valuable product such as eggs and meat and thus renders services to poultry farmers. Though more than 500,000 chickens can be raised annually and serve as a source of food for both meat and eggs.
In defining the value proposition of this business, there are basic things to keep in check for wealth creation, success factors and availability of funds in the business. The need to also plan so as to completely eliminate stress or cost in revenues is also important with feeding of the birds in perspective. When the nutrition is perfect, egg and meat producing will be high which leads to a well-structured marketing plan.
1.4 The Market
The poultry business works best through networks. Proper marketing with advertisement ensures the products is made available to the full target market. A contract can be setup with supermarkets and are usually valuable fresh markets need to be part of it. Bakeries needs daily supplies of egg to ensure their food are processed accordingly, restaurants use eggs daily and butcheries have greater benefits with buying meat and eggs at the same time. It is important that the market helps establish the quantity each of the customer requires. This helps in planning and production process from the poultry birds through efficient management of the personnel.
In order to structure the poultry production and its socio-economic and socio-cultural importance, a road map is required. The need for a poultry farm products is high acknowledge for its nutritional benefits. To contribute to human health and nutritional values, its livelihood and food security are charted.
Source: (Kryger, Thomsen et al. 2010)
1.6 Research and Development
The company will give room for research and development by teaching and training best practices in handling the poultry birds. Constant research on improvement strategy will be given a priority in conducting high power experiments and observations on the poultry bird in order to chart a new course forward for the growth of the company.
1.7 SWOT (Strength and Weakness)
The strength in the business lies in the fact that there is a healthy relationship with the loads of major players in the industry both suppliers of poultry feeds and medications and buyers of chickens and eggs. The business will boasts of the latest technology used in commercial poultry farming hatchery, tools and equipment that will help raise and produce eggs in commercial quantities with less stress. Apart from the relationship and equipment, the business can confidentially boast that the company has the most experience hands in the payroll.
The weakness could be that this new commercial poultry farms and egg Production Company might lead to attracting big time customers in the industry due to competition. This weakness will be overcome with time and make it a major advantage for the business.
The opportunities that are available as a standard commercial poultry farm and e.g. Production Company cannot be quantified. There are loads of households and businesses that require the company’s products e.g. Bakery, Fast Food Restaurants, Hotels, etc. cannot do without the daily supply of chicken and eggs. This is taken as an investment opportunity.
Some of the threats and challenges that are likely to be faced when the company starts can be global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (such as epidemics, draughts), unfavourable government policies and the arrival of a competitor.
1.8 The Business Model
A business model is a conceptual structure that supports viability of productive company and explains how the company will operate, make money and achieving its goals. All the business processes and policies that the company adopts and follows gives the business model. Poultry farming deals with rearing of chickens, turkeys, ducks, and geese, as a subcategory of animal husbandry, for the motive of farming meat or eggs
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The poultry business has benefitted from campaigns and adverts for the health benefits of chicken and eggs as a good source of protein. It is in his that the increased demand of chicken and eggs from households and food related businesses rapidly improve revenue growth for industry. The growth margin has over the years suffered from rising cost of feed and regulation of animal welfare. The recent advancement in technology, poultry farmers can now can comfortably predict and produce the quantities of chickens and eggs per time. The business model plan is structured to fit into the market trend and the product demand defining the organizational structure.
The Business Model Canvas
Source: (Khan 2016)
Chief Executive Officer: He is responsible for setting goal, mission and vision of the organization and providing ways of executing the goals by recruiting staff to appropriate sector of the organization.
General Farm Manager: He manages the affairs of every other department by making them execute a set of instruction to meet the desired stated objectives.
Human Resources Department: This department focus on human affairs of the organization such as training and others
Accounting Department: deal with the financial aspect of the organization
Sales and Marketing Department: This department ensure the flow of demand and supply. They look out for buyers and also engage in buying suitable input materials for the business
Security Department: This department ensures adequate security in the farm. They try and make physical provisions for security of life and properties.
Feed Employee: These are the units in charge of the labourer that look into the daily affairs of the poultry birds.
Customer Service: This unit attends to customers pertaining to any complaint against the farm products
Every good business plan requires a good space to establish it. The United Kingdom government in order to define the regulations in establishing business involving the production and packing of eggs and meat for human consumption must be registered and given a unique number with code defining the origin and method of production. This reduces production rates as each must be stamped.
The hallmark of every good business plan is to have the required capital to finance such business. Support from government, business funders such non-governmental organizations are essential in funding this kind of business. Studies has shown that there too much of bureaucracy in the allocation of funds in government. Stringent rules in applying for loans from banks leaves farmers the stand to thrive in their business.
1.8.2 The future
The future of the business lies in the numbers of loyal customers that have the capacity and competence of the employees. One of the major goals in starting this poultry farm business is to build a business that will survive its cash flow without the need of injecting finance form external sources. A major consideration in wining and gaining approval from customers is in retailing our products at a cheaper amount different from what is obtainable in the market.
In rewarding excellence amongst staff, welfare package are established and made available for all staff. This will in so many ways motivate the staff to put in their best. These plans gives a clue for sustainability and future expansion
Applying technology to poultry farm business such as mechanized and automated form of commercialized farming, will improve productions and generate more revenue to the business. The life stock will have a healthy lifestyle and disease rate will highly be minimized. Poultry birds have over time served as a good source of protein which has been campaigned and advertised for its nutrient composition. In order to establish a business from a poultry farm, its market value has to be established forming it an established market. A business of this magnitude requires capital for its start-up and a good managerial team for its survival in managing the production of the chicks, hens and chicken which provides for the products needed. The products such as egg and meat are given wide publicity and marketing so that it can reach the hands of the customer.
- Ben Sassi, N., et al. (2016). "Technology and poultry welfare." Animals 6(10): 62.
- Khan, M. (2016). Business Plan Commercial layer business in Bogor, Indonesia.
- Kryger, K. N., et al. (2010). "Smallholder poultry production: Livelihoods, food security and sociocultural significance."
- Samer, M. (2002). Poultry Farms: Housing Systems, Mechanization, and Technology.
- Seidler, E. (2003). "Egg marketing. A guide for the production and sale of eggs." FAO Agricultural Services Bulletin (FAO).
- Big Book Project (2019)“Poultry Houses: A Guide To Designs, Systems, Sizes & Structures”, Available at: https://thebigbookproject.org/agri/poultry-farming/houses-chicken/ Retrived: 13, Feb, 2020
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