Table of Content

    Do you want to start Poultry Farming business plan?

    Starting a business in the food sector is an ambitious plan. For a poultry farm business, a good business plan for poultry farming will be needed to make it successful. There are many different types of businesses that can be undertaken when learning how to write a business plan for poultry farming. You can go for food delivery service business plans if the major focus of your startup will be to deliver poultry products.

    However, if you are looking to open a farming business in the poultry sector, reading an organic farm business plan or reading this example is a great start. Just like any other business, you will need to develop a solid business plan for a poultry farm. It can help you get required permits as well as investors in situations of need. Here, we will be presenting the business plan for Chuck’s Produce Farm.

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    Executive Summary

    2.1 About the Farm

    Chuck’s Produce Farm will be a poultry farm started by Henry Chuck. The primary objective of the business will be to provide poultry products such as chicken meat and eggs to the produce sections of supermarkets as well as nearby restaurants.

    2.2 How will the Farm be Managed?

    According to its Chicken Farming business plan, Chuck’s produce farm will be managed through a detailed plan. The business plan of poultry farm will include management guides for all aspects of the business, from finances to operations. Henry read through many business plan poultry farming samples to ensure that his chicken poultry farm business plan would contain all the possible tricky aspects of the business.

    In this business plan online template, we will show you how to make a poultry farm business plan for your business.

    2.3 Customers of Poultry Farming Company

    Our customers will primarily be other businesses to whom we will provide our products and services to be transferred to the general public. Thus, our main customer groups will include:

    • Supermarket Chains
    • Small Produce Businesses
    • Food Factories
    • Restaurants

    2.4 Business Target

    The target of Chuck’s Produce Farm will be to become the major supplier of poultry products to the businesses in and around Dallas. The business will aim to gain at least a 60% share in the local market by the end of the second year.

    The financial targets that the business is aiming to achieve are demonstrated below:

    Poultry Farming Business Plans - 3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    Company Summary

    3.1 Farm Ownership & Management

    Henry Chuck will be the owner and primary manager of Chuck’s Produce Farm. He studied biology and biochemistry as a student and then worked with many organizations to manage product dissemination operations. His father had a farm, and it was always his dream to make use of the farm to create an organic business.

    3.2 Why is the Farm Being Started?

    Henry noticed that with an increase in the consumption of food, especially poultry products, industries had started to resort to harmful chemicals just to meet demands. He wanted to change the narrative by providing organic and healthy poultry substitutes so that local people could consume poultry products without the added harm of chemicals.

    3.3 Basic Steps to Start Poultry Farm Business

    Step1: Refine Your Idea

    The first step to the start of anything new is an idea. So, before Henry even thought about how to set up poultry farm, he needed a basic business idea. Refining the idea before he developed a business plan on poultry farming was a great advantage as it helped him limit the scope of his planning.

    Step2: Develop the Uniqueness

    The next step before writing a poultry farming business plan is to develop the unique areas of your business. Henry used this step as a build-up on the idea. He knew the importance of marketable businesses and products, so he created a brand around the unique propositions of his farm.

    Step3: Location Selection and Permits

    Henry already had a location for starting Chuck’s Produce Farm. However, since one cannot start a commercial farm on a whim, he worked to get the required permissions from local authorities. This will allow him to run his business smoothly without any legal complications.

    Step4: Online Presence

    Since Henry’s business idea is focused on commercial customers instead of the public, so most of the orders will be in bulk. In order to manage such orders and keep up to date with customers and their demands, Henry decided to invest in the development of an online portal with which his customers could put in orders. Henry also decided to develop social media profiles for his business for a greater audience reach about organic products.

    Step5: Follow the Plan

    One cannot learn how to run poultry business or any other business without dedication to a developed plan. After developing the business plan for poultry farm pdf, Henry will follow the guidelines to establish a sustainable farming business.

    Poultry Farming Business Plans - Startup Cost

    Start-up Expenses  
    Legal $151,300
    Consultants $0
    Insurance $25,100
    Rent $31,300
    Research and Development $10,000
    Expensed Equipment $52,200
    Signs $3,400
    TOTAL START-UP EXPENSES $273,300
    Start-up Assets $213,400
    Cash Required $181,000
    Start-up Inventory $35,100
    Other Current Assets $251,000
    Long-term Assets $211,300
    TOTAL ASSETS $891,800
    Total Requirements $1,165,100
    START-UP FUNDING
    Start-up Expenses to Fund $273,300
    Start-up Assets to Fund $891,800
    TOTAL FUNDING REQUIRED $1,165,100
    Assets
    Non-cash Assets from Start-up $1,140,300
    Cash Requirements from Start-up $111,300
    Additional Cash Raised $50,000
    Cash Balance on Starting Date $31,300
    TOTAL ASSETS $1,332,900
    Liabilities and Capital
    Liabilities $18,200
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $61,100
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $79,300
    Capital
    Planned Investment $1,165,100
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,165,100
    Loss at Start-up (Start-up Expenses) $88,500
    TOTAL CAPITAL $1,253,600
    TOTAL CAPITAL AND LIABILITIES $1,332,900
    Total Funding $1,165,100
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    Services

    When thinking about how start poultry farming business, Henry zoned in on the services he would be providing to his customers. This helped him filter out what operations needed planning and which ones didn’t. To start poultry farm business or any other business for that matter, a refined list of marketable products and services is needed. In his small scale poultry farming business plan, Henry decided to add all the services that his produce farm aimed to provide. To learn how to open a poultry farm, you can look at the list of services we are providing here for Chuck’s Produce Farm poultry farm business plan. You can also refer to a cattle farming business plan to understand what scale of services is best to start a business.

    • Chicken and Turkey Products

    The first set of products offered by Chuck’s Produce Farm will be chicken and Turkey. We will offer clean meat that is processed in different ways. Our customers will be able to buy full chickens or turkeys ready for roast, boneless meat, and so on.

    • Eggs

    Chuck’s Produce Farm will also rear chickens for laying eggs. This will be an added facet to Henry’s pdf on poultry farming business plan. The farm will provide these eggs to our customers regularly at a wholesale price.

    • Poultry Rearing Services

    The farm will also aid other smaller poultry farms with proper rearing of poultry and chickens for both eggs and meat. In this regard, our farmers will give training sessions and tips to the locals.

    • Chick Shipments

    Our last service will be to provide chicks to poultry farms in other parts of the country. This is to promote the development and rearing of own meat and poultry in all parts of the country. This service will help in the sustainable consumption and rearing of poultry in the industry.

    Marketing Analysis of Poultry Farming Company

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    Starting a poultry farm business requires the collection and use of a lot of information. No business can be started without knowing about your target market. Whether you are developing a dairy farm business plan or a business plan for a poultry farm pdf, you need to learn about the target market.

    Therefore, Henry decided to do some research into the poultry farm industry when learning how to set up a poultry farm business. He learned that the business plan of poultry farming should include its products and services along with its unique propositions over the market. It should inquire into the previous trends and predicted future trends to invest in operations that are useful in figuring how to establish a poultry farm.

    After looking into the industry, Henry landed knew the major trends which he decided to utilize in developing his business plan poultry farm. Through these trends, Henry identified the target customers for his business as presented in the poultry farming business plan template below:

    5.1 Market Trends

    According to IBISWorld, chicken and turkey meat production has a market share of around $30 Billion in the United States alone. And according to Reportlinker’s “Poultry Global Market Report 2021: COVID 19 Impact and Recovery to 2030” report, the industry has a growth rate of 3.8%. This means there is a significant room in the industry for another player like Chuck’s Produce Farms.

      5.2 Marketing Segmentation

    The target customers of Chuck’s Produce Farm are as follows:

    Poultry Farming Business Plans - Marketing Segmentation

    Business Plan for Investors

    5.2.1 Supermarket Chains

    Our primary customers will be the supermarket chains in Dallas. We will provide the products for their meat and produce sections. We will also provide eggs and other meat options for these chains. Thus, they will be our indirect link to the public.

    5.2.2 Small Produce Businesses

    The second set of customers we expect to serve will be small produce businesses. Smaller businesses have a harder time setting up their operations and properly rearing poultry. Thus, Chuck’s Produce Farm will offer training and shadowing services to these new businesses to promote the production of poultry on a local scale.

    5.2.3 Food Factories

    Our third target group of customers will be food factories in the nearby areas that need poultry like chicken and turkey along with eggs to create their products. We expect to have contracts with quite a few of these factories.

    5.2.4 Restaurants

    Our final target group will be restaurants in Dallas. Usually, restaurants look for the wholesale rate of poultry products to save expenses. Therefore, Chuck’s Produce Farm will reach out to many restaurants for an exclusive contract to supply organic poultry products.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Supermarket Chains 30% 51,300 61,560 73,872 88,646 106,376 10.00%
    Small Businesses 36% 43,100 51,720 62,064 74,477 89,372 10.00%
    Food Factories 16% 26,130 31,356 37,627 45,153 54,183 10.00%
    Restaurants 18% 22,110 26,532 31,838 38,206 45,847 11.00%
    Total 100% 142,640 171,168 205,402 246,482 295,778 10%

     

    5.3 Business Target

    • To achieve the status as the best organic poultry farm in Dallas
    • Promote the production of clean poultry products across the country
    • To provide chemical-free meat and poultry products to our customers
    • To increase the preference for organic, chemical-free poultry over regular

    5.4 Product Pricing

    Since our products have to compete with industrial products at a commercial level, our prices will be similar to the market competition. However, at the same price, we will be providing chemical-free products that can be checked for health benefits against competing products.

    Marketing Strategy

    To write a business plan on poultry farming, Henry ventured into research about his target market. This allowed him to develop a business plan sample for poultry farm that could focus on marketing for these particular customers.

    Note

    A marketing plan is an essential element of a farming poultry business plan. In fact, it is a very important part of every business plan, whether it is a pig farm business plan or a broiler poultry farming business plan.

    Therefore, in this business plan, we are presenting the marketing plan and strategies for Chuck’s Produce Farm.

    6.1 Competitive Analysis

    • We will provide meat that is free of chemicals to increase the growth rate or size
    • We will offer organic products that stem from proper poultry grooming
    • We will aid local poultry farms and focus on a helping business model
    • We will use organic and eco-friendly feed and products that harm neither the poultry nor its consumers

    6.2 Sales Strategy

    • We will offer organic products as compared to the chemically treated ones in the market
    • We will reach contracts with local restaurants and businesses
    • We will advertise through word of mouth and local training and guide sessions held throughout Dallas and other US states
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    6.3 Sales Monthly

    Poultry Farming Business Plans - Sales Monthly

    6.4 Sales Yearly

    Poultry Farming Business Plans - Sales Yearly

    6.5 Sales Forecast

    Poultry Farming Business Plans - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Chicken/ Turkey Products 15,000 15,900 16,854
    Eggs 25,000 26,500 28,090
    Poultry Rearing 10,000 10,600 11,236
    Chicken Shipments 4,500 4,770 5,056
    TOTAL UNIT SALES 54,500 57,770 61,236
    Unit Prices Year 1 Year 2 Year 3
    Chicken/ Turkey Products $45.00 $52.20 $60.55
    Eggs $20.00 $23.20 $26.91
    Poultry Rearing $45.00 $52.20 $60.55
    Chicken Shipments $200.00 $232.00 $269.12
    Sales
    Chicken/ Turkey Products $675,000.00 $829,980.00 $1,020,543.41
    Eggs $500,000.00 $614,800.00 $755,958.08
    Poultry Rearing $450,000.00 $553,320.00 $680,362.27
    Chicken Shipments $900,000.00 $1,106,640.00 $1,360,724.54
    TOTAL SALES $2,525,000.00 $3,104,740.00 $3,817,588.30
    Direct Unit Costs Year 1 Year 2 Year 3
    Chicken/ Turkey Products $15.00 $16.50 $17.33
    Eggs $8.00 $8.80 $9.24
    Poultry Rearing $15.00 $16.50 $17.33
    Chicken Shipments $75.00 $82.50 $86.63
    Direct Cost of Sales
    Chicken/ Turkey Products $225,000.00 $262,350.00 $291,995.55
    Eggs $200,000.00 $233,200.00 $259,551.60
    Poultry Rearing $150,000.00 $174,900.00 $194,663.70
    Chicken Shipments $337,500.00 $393,525.00 $437,993.33
    Subtotal Direct Cost of Sales $912,500.00 $1,063,975.00 $1,184,204.18

     

    Personnel plan

    If you have hen business ideas or something of the like, you may be trying to learn how to start a small poultry farm. Henry had the idea of an organic farm business plan which is how he developed the idea of Chuck’s Produce Farm. To help the success of his business, Henry added an employee section in his business plan of a poultry farm. Therefore, the workforce needed to start Chuck’s Produce Farm can be found below for reference.

    7.1 Company Staff

    • 1 Co-Manager to help in overall operations
    • 10 Trained Poultry Farmers
    • 2 Vets
    • 8 General Cleaners
    • 1 Technician to maintain machines
    • 3 Sales and Marketing Executives
    • 1 Accountant
    • 2 Drivers

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Co-Manager $30,000 $33,000 $36,300
    Poultry Farmers $245,000 $269,500 $296,450
    Vets $55,000 $60,500 $66,550
    Cleaners $162,500 $178,750 $196,625
    Technician $22,500 $24,750 $27,225
    Sales Executives $42,500 $46,750 $51,425
    Accountant $22,500 $24,750 $27,225
    Drivers $42,500 $46,750 $51,425
    Total Salaries $622,500 $684,750 $753,225

     

    Financial Plan

    Starting a poultry farm requires much more than a food idea. It requires consistent effort and planning to maintain the business. In order to develop a successful business plan on poultry farming, Henry put in a significant amount of effort in the financial analysis section.

    To start and run a sustainable business, Henry planned out the costs for different operations of the farm along with expected sales and product prices. This kind of financial analysis is necessary for every business plan, may it be a goat farming business plan. Therefore, you can follow the example below for guidance.

    Any questions? Get in Touch

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

     

    8.2 Break-even Analysis

    Poultry Farming Business Plans - Break-even Analysis

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $2,525,000 $3,104,740 $3,817,588
    Direct Cost of Sales $912,500 $1,063,975 $1,184,204
    Other $0 $0 $0
    TOTAL COST OF SALES $912,500 $1,063,975 $1,184,204
    Gross Margin $1,612,500 $2,040,765 $2,633,384
    Gross Margin % 63.86% 65.73% 68.98%
    Expenses
    Payroll $622,500 $684,750 $753,225
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $801,700 $868,200 $947,125
    Profit Before Interest and Taxes $810,800 $1,172,565 $1,686,259
    EBITDA $810,800 $1,172,565 $1,686,259
    Interest Expense $0 $0 $0
    Taxes Incurred $162,160 $234,513 $337,252
    Net Profit $648,640 $938,052 $1,349,007
    Net Profit/Sales 25.69% 30.21% 35.34%

     

    8.3.1 Profit Monthly

    Poultry Farming Business Plans - Profit Monthly

    8.3.2 Profit Yearly

    Poultry Farming Business Plans - Profit Yearly

    8.3.3 Gross Margin Monthly

    Poultry Farming Business Plans - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Poultry Farming Business Plans - Gross Margin Yearly

    8.4 Projected Cash Flow

    Poultry Farming Business Plans - Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

     

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

     

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

     

    FAQ

    1. How do I start a poultry farm business plan?

    You can start chicken farm by looking at poultry farming business ideas and developing a good business plan like the one above.

    2. How much profit does a poultry farm make?

    According to ChickenFeedMachinery, a poultry farmer can make up to $2000/month for 300 egg-laying chickens, but it varies from one type of business to the next.

    3. Is poultry farming a profitable business?

    A poultry farming business can be highly profitable if you have a commercial poultry farm business plan like the one shown above.

    4. Which poultry is most profitable?

    The success of a poultry business depends more on its management than type. So, you can download poultry farm business plan like the one above to sharpen those skills.

    Download Poultry Farm Business Plan Sample in pdf