Do you want to know exactly how much it cost to start a poultry farming business? If YES, here is a detailed cost analysis for starting a poultry farm and raising finance.
When starting a poultry farm business, you just have to get your costing cum economic analysis right if your intention of building the business is to generate profit, grow the business and perhaps expand the business and start exporting chicken and eggs within your country and other countries of the world.
How Much It Cost to Start a Poultry Farming Business?
When conducting costing and economic analysis for your poultry farm business, you just have to critically examine these key factors; place, product, pricing, promotion. As a matter of fact, you would have to continually review these key factors at regular intervals while running your poultry farm business. As a poultry farm owner, you just have to have a proper grasp of your competitive landscape.
It is important to note that poultry feed cost is one of the most important factors contributing to the overall cost of a poultry farm business and should be considered as a major factor when carrying out your costing and economic analysis.
Over and above, the cost analysis as it relates to starting a standard poultry farm in the United States of America, Canada, United Kingdom, Australia can be said to be almost the same except for few variations. For example, the cost of constructing a poultry farm with the right fencing are same especially when bench-marked against the US Dollars.
Other factors that may be slightly different in terms of costing when it comes to starting a standard poultry farm business in any of the countries listed above are cost of labor, cost of poultry feed, cost of poultry medication, cost of transportation and logistics, local tax, insurance policies, business incorporation fee, promotion and branding cost, rent/leasing amongst other factors.
Over and above, when it comes to starting a medium scale poultry farm business, you should be prepared to either rent or lease a large farm land in a good and easy to access location; this is going to be one of the areas where you are expected to spend the bulk of your start–up capital.
How Much Does It Cost to Start a Poultry Farm in the United States?
These are the key expenses you are expected to make when starting a medium scale but standard poultry farm business in the United States of America;
- The cost for the purchase of poultry feed and poultry medication – $35,000.
- The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
- Other start-up expenses including stationery ($500) and phone and utility (gas, sewer, water and electric) deposits ($6,500).
- The cost for the construction of a standard poultry facility with the right fencing – $200,000.
- The cost for leasing a large farm land – $200,000
- The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
- The cost for hiring a business consultant (including writing business plan) – $2,500.
- Marketing promotion expenses for the grand opening of the poultry farm in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Legal expenses for obtaining licenses and permits (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – $15,300.
- The total fee for registering the business in the United States of America – $750.
- The amount required for the purchase of the first set of various birds, chicken, turkey, quails, guinea fowls, ducks et al – $100,000.
- The cost for acquiring the required working tools and equipment, machines, hatchery et al– $100,000.
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for building and hosting a website – $600
- The cost for opening party – $8,000
- Miscellaneous – $5,000
You will need an estimate of seven hundred and fifty thousand Dollars ($750,000) to successfully set up a medium scale but standard poultry farm business with the capacity to raise various birds, a standard hatchery and mass egg production in the United States of America. Please note that this amount includes the salaries of all the staff for the first 3 months of operation.
Starting a small scale but standard poultry farm business with the capacity to raise minimal birds in the United States of America will cost from five thousand dollars to twenty five thousand Dollars ($5,000 to $25,000). Please note that this amount includes the salaries of all the staff for the first 3 months of operation.
When it comes to starting a standard and large scale poultry farm business with the capacity to raise various birds, operate a standard commercial hatchery, with mass egg production and the capacity to export chicken and eggs in the United States of America, then you should look towards budgeting well over two million Dollars ($2 million). Please note that this amount includes the salaries of all the staff for the first 3 months of operation.