Broiler poultry farming business is a very profitable venture to start in South Africa, with lucrative returns. There continues to be an increase in the demand for meat products in South Africa, especially chicken. This is because a lot of consumers substitute beef and lamb with poultry. Also, there are many who prefer white meat over red meat for various health reasons. Chicken meat consumption is expected to continue to increase over the years. The demand for chicken in South Africa is very high, in excess of 2.2 million tonnes per annum. In South Africa, broiler poultry meat has the highest per capita consumption than all other meats. This is the case as chicken remains the most affordable source of animal protein in South Africa.
The model of this business is raising broiler chickens for sale. How you’re going to sell them can be varied depending on your target niche. In principle, your choice of target market will be informed by your scale of production. Some of the sales avenues are selling them as live birds, selling them after slaughtering as whole birds or selling them as apportioned chicken pieces. This article will outline how to start a broiler poultry farming business in South Africa, and the broiler poultry farming business plan – PDF, Word and Excel.
Starting a poultry farming business in South Africa is a profitable venture. Compared to other livestock businesses, a poultry business is one of the easiest to set up. The startup costs are on the low side, and the potential to generate profit is much higher. However before you start a broiler chicken farming business in South Africa, there are some important decisions which you have to make. You have to decide on the size of your broiler chicken production business ie how many broilers you will have at your poultry farm. You also have to decide on the location of your broiler poultry farm, and your target market. The size of your broiler poultry farming business will depend on the amount of capital you have, the size of the land, and your target market. It’s important that you get a good broiler chicken farming business plan before you start the broiler poultry farming business in South Africa.
Market Research
When setting up your broiler chicken business, you need to understand the marketing environment in which you will be operating. You must know who your competitors are and what your target market looks like. For your business to succeed, it helps to understand consumer behavior, what consumers want, and how your potential customers make their buying decisions or react to changes. Adequate market research will also properly position you to beat your competitors. You can “spy” on your competitors in order to develop a better strategy. Market research helps you price your chickens competitively. There are plenty of large and small broiler chicken suppliers, so you may not be able to penetrate the market if your chickens are not priced well. If your prices are too high, you risk turning off potential consumers, and if your chicken prices are too low, consumers may not trust your quality. There is a need to find a balance when pricing your chickens and marketing them, and proper market research will help you do that. Ensure that you do your own personal research by reading industry publications, speaking to industry players, and simply talking to people.
Land for Broiler Poultry Farming Business
You need land – this is where you will build the poultry broiler housing. Sustainability of the land must be thoroughly assessed beforehand. The location must be very strategic i.e. near major road networks, with reliable water supply, near the market and close to cheap labour. The size of the land your business require will depend on the scale of your broiler chicken farming business.
Business Model
There are numerous business models to choose from when it comes to chicken farming, but this article will focus on raising day-old chicks for meat. With this business model, you rear the chickens, feed them until they are large enough to be sold alive or slaughtered for meat. Broiler chickens are raised from the day they are born until they are 5-6 weeks old, at which point they are processed at an abattoir and the meat is sold. Like any other livestock farming business, you need to consider the animal feed, vaccinations, and transport costs. Other factors, such as the type of equipment you will use to rear the chickens and the availability of land, are also important considerations. It is important that your poultry business is close to the market or abattoir where you plan on selling the chickens. The further away your farm is from the market, the higher your costs become. You must be aware of your municipality’s specific animal keeping bylaws in order to locate your farm in the right place.
Housing and Equipment for Broiler Chicken Production Business
Proper housing is required for your broiler chickens. For small scale broiler poultry farming business you can make use of existing infrastructure that you have. However for medium to large scale commercial broiler poultry farming business, you have to construct broiler poultry housing designed specifically for the broilers.
Broiler chickens are sensitive to fluctuating or extreme temperatures. This means that your broiler housing must ensure properly regulated and optimum temperatures suited for the birds. The broiler chicken house should have adequate ventilation and lighting. Your monitoring devices are the actual chickens themselves; close attention will inform you on whether or not the conditions are optimum. When the temperature is too high chickens tend to hyperventilate i.e. their breathing rate is elevated and you see this by their breathing as if they’re gasping for air. If the temperature is too low they have a tendency to crowd and squeeze themselves in a corner or at one spot. The other consideration on housing is to avoid direct sunlight – you can achieve this by aligning your housing unit along an east to west latitude.
The broiler chicken housing unit must also allow for adequate and free movement for each bird. Each broiler bird need about 0.1 square metres. Some of the key equipment needed for a broiler poultry farming business include feeders, drinkers and lighting system. Your broiler chicken farming business plan should take into consideration the costs of purchasing equipment and broiler housing.
Broiler Day Old Chicks
Broiler day old chicks are required when starting a broiler poultry farming business in South Africa. When purchasing the day old chicks please do your homework prior. It’s important to buy day old chicks from reputable and professional suppliers. Getting good quality day old chicks plays a pivotal role in producing broiler chickens with high growth potential and good quality broiler poultry meat. Poor quality day old chicks will result in high mortality rates and poor growth. If possible, make your choice based on other people’s past or current experiences with the various suppliers of day old chicks in South Africa. After purchasing the broiler day old chicks, transport them carefully as they will need to be handled with care to avoid mortality. Your commercial broiler poultry farming business plan should include the costs of purchasing day old chicks.
Broiler Chicks
Feed and Nutrition for Broiler Chickens
Poultry feeds and water are necessary for meat production, resistance to diseases and growth. To maximise profit in the commercial broiler chicken farming business, you should minimise the costs, minimise mortality, and optimise for the target weight of the broilers. You should give broiler feeds to your chickens. There are many stock feed companies in South Africa which sell broiler chicken feeds. Broiler chicken feeds are formulated to provide all the necessary nutrients required for the health and efficient growth of the chickens. There are 3 types of broiler feeds which you should give to your birds depending on their growth stage. These are Broiler Starter feeds, Broiler Grower Feeds and Broiler Finisher Feeds. Ensure that you give adequate feed and water to your broilers. Your broiler production business plan should take into account the cost of the broiler feeds.
Management and Labour
The number of employees needed for your broiler farming business will depend on the size of your broiler poultry farm. At the minimum you need broiler poultry attendants who will keep the chickens. Their duties include feeding the broilers, providing water to the broilers, cleaning and disinfecting the building and equipment, removal of litter and other day to day duties. Your broiler farming business plan should take into account the salaries and wages of your employees.
Marketing And Sales Strategies
Marketing broilers will not be that difficult because there is a ready market for them. Like any other business, you still need to market it to increase revenue. Some of the marketing strategies you can apply include targeting a market larger than your supply. It is wise to segment your market first before you start production. Putting production first before marketing your business is a mistake common among small farmers, and other businesses. If you put production first without discovering and segmenting your prospective buyer, you risk getting stranded. Rearing broilers can take a month and half, so you need to have a ready market by the time your chickens are fully grown. You can discover your potential market by visiting butcheries, supermarkets, schools, and restaurants to present your proposal before production. This way, you can even discover how they feel about your pricing and what their expectations are. Consider using social media to advertise your business as well. Social media remains one of the cheapest forms of advertising. You can take advantage of paid Facebook, Instagram, or Twitter ads to market your business. If you plan on rearing a large number of broiler chickens, consider using a middleman or distributor to sell your chickens. If you have the capital for it, you can set up your own retail outlet.
Market for Broiler Chickens in South Africa
The demand for chicken in South Africa is very high, in excess of 2.2 million tonnes per annum. South Africa doesn’t produce sufficient quantities of broiler meat to satisfy its demand, with the shortfall addressed through imports, mainly from Brazil. Chicken is the most consumed meat in South Africa. You can supply your broiler chickens to individuals, supermarkets, restaurants, hotels, butcheries, abattoirs and organisations.
Advantages of Broiler Poultry Farming
When it comes to livestock farming, broilers are worth the investment. Broiler farming can give you some of the best returns compared to rearing other animals. It only takes 5-6 weeks for you to start selling your chickens. In terms of maintenance, poultry farm structures are relatively simple. Diseases and illnesses can be reduced by practicing proper hygiene and care. Many consumers in South Africa complain about the quality of chickens they get from the supermarket, so generating revenue from your broiler business will not take long. This is because the quality of chicken you get from a farm is much better than from a supermarket. Also, the production costs of setting up a broiler farm are reasonable. You can easily start by raising chickens in your backyard and gradually increasing production as your business grows. You do not need a lot of space for the chickens.
Keys to Profitability
Since running a broiler business is relatively simple, some of the ways you can increase profit are through marketing your business, staying up to date with industry trends, and pricing your birds competitively. Another way you can become competitive is by delivering your birds to your customers. Simply make sure that you feed your birds with the right feed so that their weight is good enough for the market. Ensure that they are also immunized and treated to avoid illness. If you take good care of your birds, you can easily run a profitable broiler farming business.
PRE-WRITTEN BROILER POULTRY FARMING BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS
For an in-depth analysis of the broiler poultry farming business in South Africa, purchase our broiler chicken farming business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the broiler chicken production business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.
Our business plan will make it easier for you to launch and run a broiler poultry production business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the broiler poultry business plan will lay out all the costs involved in setting up and running the broiler farming business. The business plan is designed specifically for the South African market.
USES OF THE BROILER CHICKEN FARMING BUSINESS PLAN (PDF, WORD AND EXCEL)
The broiler production business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your broiler chicken farming business
- As a broiler poultry farming project proposal
- Assessing profitability of the poultry farming business in South Africa
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
CONTENTS OF THE BROILER POULTRY BUSINESS PLAN (PDF, WORD AND EXCEL)
The business plan includes, but not limited to:
- Market Analysis
- Industry Analysis
- 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
- Marketing Strategy
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Broiler poultry farming guide (Technical Details of how to house, feed and raise the broiler chickens)
- Operational Strategy
- Why some South Africans in broiler production business fail, so that you can avoid their mistakes
- Ways to raise capital to start your broiler poultry farming business in South Africa
- Directory [Contact Details for South African suppliers of feeds, equipment, day old chicks, poultry housing construction, contacts of broiler poultry farming training companies in South Africa, contacts of poultry farming organisations in South Africa]
The Broiler Chicken Farming Business Plan package consist of 5 files
- Broiler Poultry Farming Business Plan – PDF file (Comprehensive – 79 pages)
- Broiler Chicken Farming Business Plan – Editable Word File (Comprehensive – 79 pages)
- Broiler Poultry Production Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 42 pages)
- Broiler Chicken Production Business Plan Automated Financial Statements – (Editable Excel file)
- Poultry Abattoirs in South Africa -Supplementary PDF File
The financial statements are automated. This implies that you can change eg the number of broiler chickens, price of broilers etc, and all the other financial statements will automatically adjust to reflect the change.
GET THE BROILER POULTRY FARMING BUSINESS PLAN (PDF, WORD AND EXCEL) - R500 Only.
We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 500 Rand.
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The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on sales@bizbolts.co.za and we will assist you.
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If you want to purchase multiple business plans at once using Instant EFT then click here: Business Plans Store
The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on sales@bizbolts.co.za and we will assist you.
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