Poultry Farming: A Money Spinner!


Poultry farming comes in different practices;
1. Egg production
2. Meat(broiler) production
3. Cockerels Production
4. Ornamental and Rare bird rearing
5. Parent stock(fertile egg production)
6. Turkey production
7. Quail farming
8. Ostrich farming. etc.
In Nigeria, the demand for poultry products far outweigh the supply, hence it is a money
spinning venture for every willing entrepreneur. The uniqueness of poultry
industry is that it has room for persons with large source of fund(millionaires) as well as
starters with little capital. With as low as N5,000 one can venture profitably into this
industry and yet with as much as a billion Naira, one will just be brushing the surface in
Nigerian poultry industry.
Poultry farming is suitable for professionals
such as veterinarians, animal husband men,trained farmers, poultry specialist as well as
school leavers, non experts and persons with a willing heart to learn and no matter the angle
or level one is entering the industry from, training, peer reference and consultancy is a
conditio sine qua non for success in the industry. Many had entered poultry farming
and came out burnt, some others are in it reaping fortune; the dividing factor is ‘information’. Entering poultry industry blindly is suicidal! For the sake of the Nigerian market, I will in these series deal first with the two major aspect of the industry and highlight the potentials.
Going into poultry production for the purpose of egg production means you intend to raise laying hen. They could be from Day-old-chicks (DOC), or stock as Point-of-Lay(POL) birds.
Layers can be reared on Deep liter system or Battery Cage system. Caged birds need more
capital but the merits include; easy of management, cleaner eggs, safety from breakages, minimal feed wasteage, reduced
water contermination and maximized space. A unit of cage from my company with the
capacity of 120 birds cost N90,000. Most cages come with automatic drinkers; some even
come with full automation meaning, feeding,manure management as well as egg collection systems; are all automatic thus greatly
reducing human contacts, disease spread and labour cost. Cage system is therefore the
appropriate system for large scale farmers. Beginners with limited resources could start
with deep litter system. It is affordable, litter material are readily available. The major
requirements are conducive housing and more intense management of the water, feed and litters. The roof in all cases should be heat repealing, made from asbestos, thatch etc.
Vent, created to let out heat, wall should be less than two feet high, ‘curtain’ from sacks or
tarpaulin provided to prevent entrance of rain water to prevent incidences of coccidiosis and other enteric diseases.
Beginners should minimise the cost of poultry house construction and utilise local materials as equipments so that the limited resources could be channel into productive running cost such as DOC or POL and feed. To give you an idea of cost as of today, a million naira, if
meticulously utilized can construct a poultry house that could hold five thousand birds.
From our company too, persons that want to enter the venture with cages with all the added
advantages, could purchase same with about N4.2million for 5,000 birds. We also supply
DOCs and POLs. DOC cost between N120 to N210/chicks depending on time of the year and hatchery. Beginners could start with POL, these are birds in their fourteen to twenty
weeks of Age,(birds often start dropping their first egg from 22weeks to 24weeks of age).
Advantage of acquiring Point Of Lay birds is the reduced risk. Prices of POL at press time
ranges from N750 to N950/bird.
In budgeting for feeding, a bag cost about N2,200 today and could feed 100birds for 3
Let me open your understanding to how profitable egg production could be under proper management, a bird at good lay point generate between N6 to N10/day as gross
profit. This means that a flock of 100 laying birds could generate N800 profit per day, and about N24,000/months hence by implication 1000birds could generate N240,000/month and
10,000 bird farm, a N2.4million profit per month. At the end of the 54 to 72weeks of lay,
the spent layers would be sold for nearly the equivalent amount with which the POL is
purchased. You can see that egg production is terrifically profiting. The demand for eggs is seemingly insatiable.
I will briefly explain what meat production entails in poultry farming. The meat is call
broilers, fryers, poultry or simply chicken. To succeed on this side of the industry, the farmer must target eateries, hotels, and cold rooms or
start ones own outlet. Breeding broilers for live sales is only sustainable under small scale
and seasonal. For a farmer to be successful in broilers, he should rear between 1000 to 10,000
birds and above per batch. Harvest should be at least weekly. A large poultry house is
needed. Provision of constant electricity is necessary for lighting and cold room.
Broiler production entails purchasing DOCs(broiler), brooding, and raising them for six to seven weeks. Feeding is ad libitum(i.e continuously). Well managed flock will weigh between 1.8 to 2.4kg within this period and upon dressing, weigh between 1.4 to 1.8kg/
bird which is the standard weight for most eateries. Some companies that buy live birds
pays between N410 to N600/kg live weight.
Eateries and some cold rooms pay N600 to N820/bird dressed weight. Profit expectation
from raising broiler is between N150 to N250/bird.
Factors to consider before venturing into broiler production also include but not limited to the following: good source of DOC, conducive housing, good feed, technical know how, heat for brooding, cold room facility, defeathering machine, and a ready market.
The demand for broilers is ever high and with the ban on importation on poultry product,
the sky is the starting point for any bold entrepreneur.
Which ever aspect you wish to participate in, always seek and pay for consultancy, employ
experts or get trained and start gradually.
In my next series I will go into the next two form of poultry production. I will also, in
similar series, give hints on how to avoid common pit falls in poultry farming. For further consultation, call.
Email: contact@farmergiantltd.com

For company info visit: http://www.farmergiantltd.com

AgroChemical show in Lagos. 16 and 17 July 2013


AgroChem Trade Show in Lagos, Nigeria on 16th & 17th July 2013

“AgroChem Trade Show” in Lagos, Nigeria on 16 & 17 July 2013.
There is good Export potential for Agrochemicals and other related Agro Inputs in Nigeria , including Public Health Products.
Overview of Nigerian Market.

Nigerian Companies consume in excess of $3.58 billion worth of chemicals per annum but produce just $ 380 million. The base Chemical sectors, which consists mainly of petrochemicals, accounts for over 70% of the total chemicals market in Nigeria. 
There is a large market for agro- chemicals in Nigeria. The market, dominated by eight large companies was estimated to be N500 ($ 1 2 million). The market and marketing of Crop Protection Products ( CPP) in Nigeria are unorganized and not properly regulated. The trade deregulation has brought all kinds of traders into the CPP market making it difficult to determine various market shares and sizes.
It is estimated that the private sector agrochemical companies supply about 70% of the total CPP demand of approximately N500 million. The total CPP supply is usually composed of 30% herbicides, 40% insecticides, 15% fungicides, 8% growth regulators and seed treatment chemicals, and 7% rodenticides, nematicides and others. Over the years, there has been little growth in the size (in quantity terms) of the CPP market.
The registered distributors supply to large-scale farmers either directly or through their local agents at the retail level. It is estimated that by volume, 60% is sold to the large-scale farms through direct sales by the companies and distributors and 40% through government agencies and ADPs to small-scale farmers.

Venue in Nigeria   


Contact Farmergiant Nigeria Limited, for import or investment opportunities in Agrochemicals.
Email: paul.adoyi@farmergiantltd.com

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Cost of setting up 5000 capacity Poultry In
1. Building:
A single building that can contain three rows
of cages would be suitable. The width should
be a minimum of 12meters and length of
should be 35meters. Utilize the cage detail
below in construction bearing in mind that
each row will have a gutter.

Cage: Poultry Chicken layers cage in CKD form
the length: 2.2m
the width: 2.4m
the height: 1.65m).
The estimated cost of the building could be 1.8million to 3 million naira.
The wall should not be more than 0.3meters
and the roof should be of asbestos with a vent
in between.
Required cages:
Utilizing the Premium cage quality; capacity is
120 birds/unit. The 5000 poultry would need 42
units. Total cost is N3,780,000. Cost of
installation is N84,000.
Budget N850/point of lay bird or N180/day old
chick. Budget additional N200/POL to raised
them to laying or additional N750/DOC to raise
them to laying. In general budget N5 million to
raise 5000 birds to lay.
Good birds would start dropping at least by 20
weeks. Feeding at this point would be about
0.1kg/bird each day. By the time they peak,
profit expectation should be about N5 to N7/bird
each day.



Nigeria has the highest number of poultry farm in Africa. Poultry meat and eggs are the most consumed animal protein; unrestricted by any religion or culture in Nigeria. It is recorded that the poultry industry contributes about 25% of the country’s Agricultural GDP.
Nigeria presently produces about 300,000 tons of poultry meat per annum officially and 650,000 tons of eggs according to FAO. A parallel record from Poultry Association of Nigeria (PAN), indicates that Nigeria produces presently above 1.25million tons of egg per year. Despite, this volume, Nigeria is far from meeting her domestic demand for poultry products. In comparison, countries like Brazil produces over 13million tons of poultry meat per year while China produces about 13.5 million tons. Top on the least of poultry meat production is USA which stand above 25million tons per year.
USA, in 2011, exported poultry products worth $3.2billion(N576 billion)on broiler alone. A single corporation, Tyson Food Inc, produced about 100,000tons of poultry meat per week, in order words, the company produced in three weeks what we produce in a year. Brazil with a population of 192 million is not so much larger than we are, with predominately black population, second only to Nigeria. If Brazil can harness such great wealth from poultry, Nigeria can.
South Africa is the second producer of eggs in Africa. They stood first in broiler production in Africa with 1.5 million ton per year being about 28.8kg per capita per year in comparison to our 300,000tons which is about 1.7kg per capita per year. Ghana, produces about 2.07kg per capita per year with about 51,700 tons for a population of 25 million.
With our gross under production, most of our poultry demands are met by smuggling. Ton and tons of poultry meat are smuggled into Nigeria daily despite the fact that the product is high on the Import prohibition List (IPL). Most farms in Nigeria have demand for eggs which is beyond their capacity to supply making the enterprise one with very high potential in Nigeria.
In 2007, the a statement credited to one of our greatest farmer, indicated that Obasonjo earns about N34,million net per months, this was refuted by industrial experts who said that going by the capacity of the Ota farm, he makes far more than that. But yet in comparison to farms such as Tyson farm USA, JBS Brazil or Farqeeh Poultry Farms in Saudi Arabia among many, we have really not gotten a big farm in Nigeria. Tyson farms as at that time produced 20million eggs per day, in 2011 generated a revenue of over $32 billion and made a net profit of about $750 million(N120 billion). We can create such a company in Nigeria, because we have such potential and the competition is less. JBS Brazil is the largest multinational food company in the world with annual revenue of $40 billion in 2012. It presently employs over 125,000 persons. Their major product is poultry and beef. Similarly, Faqeeh Poultry Farm, Saudi Arabia is reputed to be the world largest individually owned poultry farm. Expanding to a capacity, of 1 million broiler birds per day and 3 million table eggs per day. All these are indication that Nigeria’s potential for wealth generation from poultry industry is far from being tapped.
According to the Global poultry trend, it seems poultry expands in Africa by 3.2% against global figure of 2.2%. Egg production in Africa is targeted to reach 3 million ton per year in 2015 and Nigeria is leading on the expansion with South Africa, both expanding at 4% annual increase (FAO).
Nigeria poultry potential is expanded beyond her borders. The Nigerian farms already supply beyond our domestic market. Countries like Tchad, Niger, Cameroon, Equatorial Guinea, Central African Republic, Gabon, Togo, Benin Republic as well as Sao Tome and Principle are our market to fill. Some of them presently depend on our meager supply.
The poultry industry has a large capacity in Nigeria to create employment and even much more as value s are added to the products. The potential in Nigeria is enormous and only the elite farmer can actually fill the gap and harness these opportunities.

The industry is capital intensive to set up ranging from the cost of feed, birds, housing, land and labour. Briefly, the following data will give one an insight of cost of set up of a poultry farm in places like Kaduna state.
A standard poultry building to house between ten to fifteen thousand layers could cost about N8.million.
Cost of Day old chicks, feeding, etc of 10,000 birds from day 1 to week 22 when they start laying could be between N9 million to N10 million.
Thirdly, about N7.9million would be needed to install semi automatic cages to house such birds or about N11million to install full automated battery cages for a 10,000 birds. This implies that such a small farm as this will on the average need about N30 million to operate under an accepted standard.
Profit expectation of such farm grossly is about N18million per annum and would take about two and half year to break even.

I will utilize this section to outline common cause of the setback in this industry because; handling them will make us prepared for the successes that this industry portends.
Modern poultry trend are taught by very few institutes in Nigeria. The few experts, in Nigeria are scarcely patronized except by the very big farms, hence dependence on quacks and outdated method one of the great peril that befall this great industry.
Technically, our environment could be harsh on birds, hence the need for structures that minimize stress. Poultry house should be constructed to provide to suit the environment, promote comfort of the birds and permit ease of waste management.
Equipments used in poultry farming are improving on daily. Dependence on old and obsolete methods wills maximization of the available potentials. Electricity is needed to power some of these modern machines; hence lack of power is as well perilous.
Smuggling: The custom, the paramilitary, the police and other security operative aid and abate smuggling of poultry products into Nigeria on a daily basis. With the price of these products being less than half the cost of production in Nigeria, smuggling remains a major setback to the poultry industry in Nigeria.
Maize: The major cost of poultry production is feed, 70% of this is the energy cost. The price of maize in country like Brazil is just 30% of the cost in Nigeria.
Extension: Knowledge of advancement in the poultry industry such as on building, diseases management, biosecurity, management and marketing technique are hardly disseminated to farmers, hence farmers continue in their trial and error and the result is often failure.
Vaccine break: Coverage for Newcastle disease and Infectious Bursa Disease are not yet adequate. We encourage farmers to utilize the local vaccines from National Veterinary Research institute, Vom to minimize lost due to vaccine failure.
Research showed that technical and allocative inefficiency of farmers is among major cause of failure in the industry. Allocative inefficiency includes putting more money in asset than on running cost. Only quality consulting can save entrepreneurs from this error.
Glut: occasional glut in egg market is a great challenge to farmers. Farmers should be educated on egg storage techniques. Governments and enterprises should also bring in advanced technology on conversion of eggs to liquid or powder as obtainable in other clime. Industrial utilization of eggs should be promoted.
Feed formulation: In addition to high cost of energy cost, poor formulation of feed by farmers often leads to compromise and eventually malnutrition. Experience showed that only few feed mills have quality control. It is often difficult to beat the big players in feed milling. My advice have always been, to leave feed milling to the big companies such as UAC, Top feed, Hybrid etc and focus on one aspect of poultry which could be egg production or meat production. Vertical or horizontal integration should only come in after the stabilization of the enterprise.
Poor quality chicks: There are many breeder farms and many hatcheries, Control is near zero. Consult older farmers for advice on stocking of day old chicks or point of lay birds.

Further Reasons for Poultry Failure in Nigeria.
Non patronage of professionals. Farmers should patronize professionals and not quacks. Employ veterinarians with experience in poultry practice and pay well to retain them either on full time or part time options. Allow tutelage under experience professionals only. Quackery, indiscriminate administration of drugs, vaccine and other mismanagement is tantamount to failure. One characteristic of successful farms such as Animal Care, Obasonjo Farms, Ajanla Farms and Zartech is that they all patronize professionals.
Absenteeism: Small and medium scale farms cannot be run by an absentee farmer. Farms can be handed over to trusted professionals or managers but after the enterprise has taken a footing. Every business will pass through a ‘teething problem’ time. Entrepreneurs at those times should offer at least 65% quality time to their business to be able to survive.
Poor planning: There is no room for procrastination or poor execution in poultry farming. Every input must be available as when needed. Imagine a poultry that would have to run out of feed or water for hours or even days! Or a poultry that could not afford to administer drugs or vaccine because the chairman traveled. One day mismanagement could result in chains of consequences and several of such could result in total failure. Plan according to your capacity and have the picture of the whole cost right from the very beginning.
Structure: This is very important but often ignored by some consultants and farmers. Ab initio, the poultry house design should be prioritized. The poultry house must be suitable to enable optimal production because production or reproduction is leisure. Different zone of the country has different peculiarities that must be put into consideration when constructing the poultry houses. In all, building should be constructed to minimize floor wetness, prevent excessive wind or cold weather, and maximize sun light while minimizing heat. Positioning and designs should be done by experts. Waste tanks, water well, space for further expansion should all be inclusive in site plan to achieve success

Permit me to mention some other cause of Small and Medium Enterprise failure which are not particular to poultry per se
Only 50% of SMEs, survive five years! Record showed that 15% don’t even survive one year and most succumb to the same mistake. Causes include but not limited to:
Inexperience : Over estimation of ability to generate revenue or an underestimation of cost (Stewart Thornhill , executive director at Morissette Institute for entrepreneurship )
Lack of proper management and accounting procedure. Even when this is in place, refusal to follow the norm, spending outside budget, fraud, arbitrary withdrawal of money or products, shrinkages from thieving workers etc. Mismanagement could also include poor remuneration or welfare package for staff. Imagine when worker are registered under NHIS and are having N5,000 being paid into insurance scheme for them and are being paid minimum wages; such would be scared of loosing such jobs.
Mum and Pop Syndrome. I learnt this from Poju Oyemade; it is a great syndrome that affects small business growth all over the world. A business run solely under family management can only grow beyond a particular level except some principles are put in place. Accountability, record keeping, seriousness of purpose, expertise should not be jeopardize all in the name of family or friendly ties. As a principle, employ no one into the poultry if you cannot fire him or her! Children, nephews, nieces, cousins, friends, siblings, friend’s children etc should only be employed when they can be subordinate to the management and accept to see business as it should be.
Join Poultry Association of Nigeria (PAN), share notes, with willing farmers.
Seek for grants and other government incentives such as loans and subsidies
Re –invest profit for expansion but always know the status of your investment always.
Avoid quick diversification. Focus on an aspect and don’t combine it quickly with non poultry farming until you are set to take a curve out or in, or to undergo vertical integration or horizontal integration.
Explore new market; generate more customers within and outside the state and even into the surrounding neighboring countries such as Niger republic, Chad, Central African Republic etc.
Scale down cost. Reduce labour cost by utilizing cages, get a van to reduce dependence on transporters, obtain distributorship or sub distributorship from feed companies to buy feed at a discount prices
Employ qualified personnel and pay commensurate salary
Have a good knowledge of the business via training, seminars and reading
Have a working knowledge of your enterprise through a workable business plan that present a projected cash flow, profit and loss account, break even analysis, organogram and other tools even before you start. This should be prepared by an experienced practitioner.
Give your business minimum quality time before you give any space.
Apply the 80:20 principles on your products, workers, customers and resources. It states that a 20% of any of those often give you 80% of your result. Discover that small fraction and devote 80% of your resources on them to get optimal result. Try reducing some of the unproductive 80%.
Remember always that customer is the king, Strive to create them and satisfy them
Work out a team out of the administration, workers, customers and partners. Ensure that each understand the benefit of the progress of the business.
Envisage competition and hence plan ahead of them even before they emerge. Be innovative even in your poultry farming and marketing of your product; make your product unique
Project definition.
At the beginning of the project have a target on a scale you wish to operate. For instance one can say, “at full capacity, I will have 5000 laying birds or 50,000 or 500,000 laying birds”. With such in mind, you create a plan for land, capital, manpower, market etc and start off gradually possibly with a 10% trial phase and with the set land marks, graduate gradually to full maturation. Stop at full capacity and only start again under a new plan! Not to know when to stop, is an error and could be a source of failure. With set land marks, move only to the next level when you are at rest on the present level. This will also aid one when taking loans or bringing in investor to avoid biting more than can be chewed.
Management of Disaster.
Disasters could present itself as natural disasters e.g., avian flu, flooding, etc and manmade disasters such as national or regional crises, economic crises, etc. without an insurance cover, most farmers do not survive such disasters. National Agriculture Insurance Corporation, NAIC provides such cover and must be taken as a priority.
Provide biosecurity measures in your farm to prevent outbreak of diseases.
We have seen that:
The market for egg and poultry meat is large and waiting
There is a fallow in expansion of the egg industry to storage and processing egg to liquid and powdered form
Nigeria has a larger potential to export poultry products to other part of Africa.
And Price is high
* Poultry is capital intensive
* Much expertise is needed to succeed
* Cost of machinery is high
*Modern machines necessary to follow world trend
We also reorganized the Peril include
Inexperience, lack of information and less utilization a setback for the industry
Maize cost, smuggling of poultry products, high cost of loan, are perils that the government can tackle
Vaccine break, glut, feeding error and poor accounting policy are administrative errors affecting growth
Hence, we now know that potential farmers especially planning to go on big scale have to avoid:
Poor planning
Patronage of quacks
Poor allocation of fund
Before you start CONSULT!
Properly ALLOCATE your fund, Land, and time
Perform a market STUDY, and continue with peers to improve
Utilize RESARCH result from institutions, online and consultants such as Farmergiant etc
Get TRAINING from institute such as Funtuna, company like Farmergiant.
Bring in consulting PARTNERS.
Employ PROFFESSIONALS and pay well
Take an INSURANCE policy
FOCUS on one aspect of the industry at a time
Expect curved balls, hence start GRADUALLY but steadily
Thanks and know it that FARMERGIANT NIGERIA LIMITED is there for you all the way.
Dr Paul Oche Adoyi
Farmergiant Nigeria Limited
email: paul.adoyi@farmergiantltd.com

Agricultural Insurance

FARMERGIANT NIGERIA LIMITED as an Agricultural Insurance Broker,
Offers to aid you as the Parent company underwrites all classes of Agricultural insurance including
Crop insurance
Plantation Fire Insurance
Bloodstock/Livestock Insurance
Poultry Insurance
Fishery/Fish Farm Insurance and
Farm All Risks Insurance etc
Other insurance products relating to agricultural risks includes warehousing insurance, goods in transit insurance among others
We can issue each of the above policies either as stand-alone or as a combination of policies
Our Rates
Although, Farmergiant policies are not subject to subsidies from the Government, we have carried out extensive research and actuarial assessment and are pleased to offer the following rates:
Poultry, Livestock, Bloodstock, Fisheries and piggery policies    – 2.5%
Crop insurance                                – 2%
Comprehensive policies covering crop, harvesting, goods in
transit and storage                                – 3.5%
Farm all risks insurance for plants, machinery and equipment    -1%
Pre-Loss Risk Surveys
We have in-house experts who carry out pre-loss surveys of all farms proposed for insurance. These include Veterinary doctors, agronomist and agricultural engineers who have good knowledge of the risks inherent in agricultural practices whether crop or animal production. They will inspect all the major farms and make recommendations in the overall interest of the farmers, the insurers and the financiers.
Maintenance Service
The Parent company maintains a network of extension officers who are charged with the responsibility of visiting major farms to ensure that they maintain good house-keeping and comply with the recommendations of the experts during the currency of our insurance covers. This is to ensure that the farmers are not unduly exposed to risk of loss without taking adequate measures to mitigate the exposures.

Our staffs are able to adjust and make necessary recommendations on claims. However, where the other expert knowledge is required, we have retinue of skilled independent consultants who are able to advice on complex claims
Where claims are fully documented, agreed and discharged, we settle same within two weeks of discharge.

Whereas the  Insured named in the Schedule hereto has made to the Industrial and General Insurance Plc a proposal and declaration which shall be basis of this contract and be deemed to be incorporated herein for the insurance herein after contained and has paid the premium stated herein.
THE COMPANY HEREBY AGREES (Subject to the terms and conditions contained herein or otherwise expressed hereon) that if the birds hereafter described be lost by DEATH resulting from ACCIDENT or DISEASE at any time during the period of the insurance stated herein or any subsequent period in respect of which the Insured shall have paid and the Company shall have accepted or agreed to accept the premium required for the renewal thereof the Company will pay to the Insured assessed Value of loss as per the valuation table attached hereto at the time of loss of the Birds.
This policy does not cover death of birds due to:
2.1     Malicious or willful injury or neglect, unskillful treatment.
2.2     Theft, mysterious disappearance or other unaccountable shortage, including infidelity of the insured( s), Grower( s) or employee of either.
2.3     Newcastle Disease,Infectious Bronchitis, Avian Diphtheria, Avian Leucosis Complex, infectious Coryza, Infectious Bursal (Gumboro) Disease, Chronic Respiratory Disease (CRD), Tuberculosis, Marek Disease, Coccidiosis and Colibacilosis Unless the insured birds  are properly vaccinated at all times and all other necessary preventive measures are taken against the disease(s) continuously. Suitable certificate of Health from a registered  veterinarian to that effect must be produced at the time of the proposal for insurance.
The Company may at any time during the period of insurance call for veterinarian’s . Certificate evidencing such vaccination( s) as falls (fall) due.
2.4     Government slaughter order or slaughter order from any other public authority.

2.5     Earthquake, War, Invasion, Act of foreign enemy, Hostilities (whether War be declared or
not), Civil War, Rebellion, Revolution, Insurrection, Mutiny, Tumult, Military or ‘Usurped Power or any consequences thereof.
2.6     Nuclear energy of any kind
2.7     Fire not covered except if incorporated by Endorsement.
The loss assessment shall be done on the basis of the cost of production at the time of death worked out on the agreed sum insured of the poultry birds.
Premium on renewal is to be reduced by 5% after a claim free year.
Sum Insured (S.I.)
Layers:            Value of Birds at point of lay
Broilers:        Value of Birds at time of sale
Pullets:            Value at the end of rearing period
Cockerels:        Value of Birds at time of sale
Parent-Stock:         Value of Birds at point of lay
Grand Parent Stock:    Value of Birds at point of lay

1.    NOTICE: Every notice and communication to the Company required by this policy shall be made in writing to the nearest office of the Company through which this insurance is effected.
2.    IMPROPER DESCRIPTION: This policy shall be void, and all premium paid hereon shall be forfeited to the Company in the event of misrepresentation, improper description or non-disclosure of any material particular.
3.    CHANGE OF HAZARD: Before each renewal of the insurance, the Insured shall give a written notice to the Company of the disease, injury or physical defects which the birds had been or are suffering from.
4.     REASONABLE CARE: The Insured shall at all times exercise all reasonable care and diligence in the selection of employees and chicks and shall provide that every birds insured has sufficient and proper balance standard feed, water and shelter and shall keep secure, all fences, yards, sheds and cages and shall use and exercise every precaution and in every manner provide the same care and attentions as if no insurance had been effected. The insured shall not introduce or permit to be Introduced any disease infected bird among any insured stock or upon any part of his premises nor allow/permit the insured stock to mix with diseased or infected poultry or enter into sheds, buildings or any other place where such affected poultry are. The insured shall also arrange for any poultry suffering from any disease to be completely separated or isolated from the remainder of his stock immediately upon the discovery of the illness and shall take all necessary and proper Precaution to protect the healthy stock from any danger of infection. Biosecurity measures must be put in place.
5.    INSPECTION: The Insured shall permit the authorized representatives of the Company at all times to inspect the poultry hereby insured at the premises of the insured and also furnish any information which the Company may require and shall comply with all requirements applicable to the poultry industry under the statutes, rules or regulations stipulated by Government or any other Authorities. The Insured shall also comply with the directives/risk improvement measures which may be issued by the Company from time to time.
6.    MAINTENANCE: The Insured shall have proper and adequate Veterinary facilities and must ensure good house keeping of the farm. Poultry should be acquired only from approved standard Hatcheries. Proper record of daily stock position, feed consumption and egg production must be well maintained  by the Insured. The Veterinarian’s Certificate should be submitted (as prescribed) for the replacement of poultry added during the currency of the policy).
7.    CANCELLATION: The Company may at any time, by giving seven days notice in writing by registered letter to the Insured at his last known address, cancel this policy in which case the Company shall return to the Insured a proportion of the last premium corresponding to the unexpired period of insurance.
8.    CLAIM PROCEDURE: The Insured or his agent shall upon the occurrence of any event giving rise or likely to give rise to a claim under this policy, give immediate notice by the quickest means within 24 hours to the Company which may instruct an approved Veterinarian on its behalf if deemed necessary for independent investigations and treatment along with any registered Veterinarian by the Veterinary Council of Nigeria appointed by the insured and shall within 14 days thereafter furnish to the Company at his own expense detailed particulars to substantiate the claim as the Company may require and employ immediately at his own expense a registered Veterinarian for treatment and comply strictly with his instructions. In the event of the death of any bird thereby insured, if required by the Company the Insured shall at his own expense have a Post Mortem report, and submit full particulars of his claim to the Company. All dead birds should be separated and shown to the representative( s) of the Company or any person( s) authorized by the Company
9.    SUBROGATION: If the death of any of the poultry birds hereby insured shall be due to negligence, Carelessness or wrong doing of any person, the Insured shall, at the expense of the Company do, and concur in doing, and permit to be done, all such acts and things as may be necessary or reasonably required by the Company for the purpose of enforcing any rights and  remedies, or of obtaining relief or indemnity from the culpable party to which the Company shall be or would become entitled or subrogated upon its paying for or making good any loss or damage under this policy, whether such acts and things shall be or become necessary or required before or after his Indemnification by the Company.
10.    MINIMUM LOSS TO ATTRACT CLAIM: In order to qualify for indemnity under this policy, the following minimum loss must have been incurred:
Layers            Above 10% of total stock
Breeding Birds
11.   EXCESS CLAUSE: In the event of any loss for which the Insurer is liable,
the Insured shall be responsible for 10% of each and every claim.
12.     CESSATION OF RISK: This policy shall cease to cover any poultry immediately the Insured sells it or part with any interest in it whatsoever whether temporarily or permanently.
13.     CONTRIBUTION: If at the time of any loss covered by this policy there shall be any other insurance covering the same poultry whether effected by the Insured or not, the Company shall not be liable for more than its rateable proportion thereof.
14.     FRAUD :If any claim under this policy shall be in any respect fraudulent or if any              fraudulent means or devices are used by the Insured or anyone acting on the Insured’s  behalf to obtain any benefit under the policy, all benefits under the policy shall be forfeited.
15.     ARBITRATION CLAUSE: All differences arising out of this policy shall be referred to an Arbitrator to be appointed in writing by the parties in accordance with the statutory provisions on that behalf for the time being in force, and in case of disagreement between the Arbitrators, to the decision of an umpire who shall have been appointed in writing by the Arbitrators before entering upon the reference and an award shall be a condition precedent to any liability of the Company or any right of action against the Company. If the Company shall disclaim liability to the Insured for any claim hereunder and such claim shall not within six calender months from the date of such disclaimer have been referred to Arbitration under the provision herein contained, then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.
16.     OBSERVATION OF TERMS AND CONDITIONS: The due observance and fulfilment of the terms, conditions and ,endorsements of this policy in so far as they relate to anything to be done or complied with by the insured and the truth of the statements and answers given in the proposal form shall be a condition precedent to any liability of the Company to make any payment under this policy.

Note that you will need insurance policy to secure any Bank loan. Contact us for legal and professional advice free



Posted on June 4, 2013 by Adoyi Ado

Find the right growth path for your poultry business in 2013

by Damien McLoughlin, UCD Michael Smurfit Graduate Business School, Ireland
Does your company have the four pillars for a sustained growth strategy

Does your poultry company have an actual plan, beyond working harder, to grow your core business?

There are two questions leaders of every poultry company should be asking themselves right now: Do you have an ambition to grow your business in 2013 and beyond? If so, do you have an actual plan, beyond working harder, to grow your core business?

If you are like most leaders, the answer to the first question is yes and to the second is no. This challenge is particularly significant in the poultry industry this year with issues such as record animal feed prices and downward pressure on bird prices pressing profits down.

However, those who have been in the poultry business for a long time know that there is a problem with prices or costs most years. The question then is: Why do some companies thrive and others do not?

The answer lies in the development of a logical and consistent strategy for growth and the execution of that strategy over time.

Of course, the “S” word, strategy, is anathema to many entrepreneurs, recalling as it does a long and time-consuming process of discussion and debate, with a resulting document that is of little practical use.

However, over the past 10 years, Chris Zook, a consultant with Bain & Co, has developed a set of ideas known collectively as Profit From the Core that offer a practical and useful alternative. These ideas are simple and logical and, in my experience, are intuitively attractive and practically useful to companies of every size. According to Zook, there are four pillars to a sustained growth strategy.

Pillar 1: A business must have a strong, well-defined core with leadership economics in the core of the core

Every business has a core. Most likely it is the part of the business which, more than any other, drives customer loyalty and company profitability. The core is what makes your company unique and is the root of your competitive advantage in the market place.

For example, Nestlé is a company that has effectively defined its core products—coffee and infant formula. These are its competitive advantages, it is the global leader in these markets, and it provides the core through these competitive advantages. What it learns here is relevant to every other part of its business.

Defining your core is the cornerstone of strategy. Do you know (specifically, not generally) what the core of your business is?

One of the world’s largest broiler companies provides an example of core understanding and development. Originally, its core was clearly in the production of broiler chickens. Later, it redefined its core as a protein company, audaciously acquiring an organization twice its size. Later still, a previous CEO returned and made it clear that the company would refocus on its core as a producer of chicken meat while also growing through adjacencies as a world-class animal protein supplier.

In many enterprises, management teams do not agree on the core and some have never even talked about it. By not fully identifying the core or by taking it for granted, companies can prematurely abandon the real core of the business or become involved in growth initiatives that are too far from the core, spread resources too widely and develop confusion in their organizations.

An example of this was an organization in Northern Europe that started 80 years ago as a fishmeal supplier, then moved into animal feed, later animal breeding, biologics and genetics. A venture in the Middle East involving the construction of turnkey plants led to the collapse of this poorly conceived business with the company being sold and restructured. Today, it is successful with a clear mission in the poultry health industry.

Poultry companies should identify their core business and then leverage their strength and success in that core to identify growth opportunities. Many companies have multiple product lines within their core business area of layers, broilers, turkeys, etc. It is worth examining each of these areas in detail and asking which contributes most to growth in sales and profits and to then examine why. For example, Bachoco is the number-one poultry company in Mexico, holding the first or second position in both eggs and broiler sales. Is Bachoco’s core in poultry proteins marketing and branding, or is its expertise in the conversion of grains into poultry proteins?

Pillar 2: Pursue the correct adjacent moves to secure growth within the company (and avoid wrong ones)

Businesses have many options for growth each year, but most growth initiatives fail to generate significant sales or profits. Those most likely to succeed are ones that are close, or adjacent in Zook’s words, to the core of the business. A company can achieve new adjacency growth through products or services, new customer segments, new parts of the value chain, distribution channels, business and geographies.

Returning to our earlier example, Nestlé has grown from its core business of infant formula and instant coffee to enter adjacent businesses such as pet food (adjacent in that they have similar customers, logistics, production, marketing and distribution), which has proved to be very successful.

K&N’s in Pakistan is a great example of a poultry company that has moved from being a breeder to becoming an integrated broiler company built on the core of safe and healthy chicken for the people of Pakistan.

The best adjacency strategies also leverage and reinforce the core business. Examples from China and India are integrated chicken producers who have moved to own their own stores and sell their meat directly to consumers. Al-Watania in Saudi Arabia has even developed its own chain of fast food restaurants.

In the egg business, a successful adjacent growth strategy may be filling a new niche customer market for eggs, such as omega-3 or selenium-enriched. Eggland’s Best is the clear leader in North America in this field, commanding 90 percent of the specialized market, and achieving five continuous years of months with double-digit growth in an overall market that was declining. Their offerings include a range of strongly branded, nutritionally enhanced eggs at a considerable premium to the eggs sold under traditional labels. For a broiler producer, it may be a move into another similar but complementary meat, or indeed further processing. A useful way to engage in this process is to take the definition of the core you have identified for your business and then ask who else might buy these products or what else would we need to do in order to get a new customer group to buy our products. Some have achieved this by specializing in antibiotic-free or even organic meat production. Globally, Brazil has become the expert at exporting frozen meats, and Thailand has specialized in high valued-added poultry meat.

Pillar 3: Become the best at following the customer

The world today is suffering a protein shortage. All over the world malnourishment continues to shorten lives because people do not consume enough protein.

Meanwhile, the dramatic rise in general incomes in Africa and Asia in the past five years is also driving an increase in consumption of cheaper animal proteins, specifically eggs and chicken meat.

If this is so, why do you have to sell your product, why are people not asking you for it?

The reason is that the food industry in general does not follow the customer. Instead, it has traditionally pushed products at its customers. With daily blogs, tweets and posts demanding cage-free, farm-fresh and organic products, we need to listen to what consumers are saying, determine the best route to market and meet their expectations.

Perhaps we can improve meat quality and the customer experience by further investigating parameters such as tenderness, drip loss, cooking loss and shelf life. Take some time to identify parts of your state, country or region of the world that do not currently consume your product. Why don’t they? What would you have to do to change that? The answers should be a fairly long list, and this can be your portfolio of growth opportunities.

Pillar 4: Use repeatable formulas in the business strategy

The final stage in this process is to avoid reinventing your wheel. In finding and investing in adjacent growth opportunities, your company needs to find a way to repeat its formula for success in each new market. Nestlé, for example, has built a repeatable formula based on strong brands, premium prices and wide distribution.

By implementing a repeatable formula in their business plans, companies will find internally they will have more strategic clarity, speed in recognition, decision and action, lower management complexity and more focused innovation. Companies such as Tyson, Sadia and Perdigão all built strong consumer brands and markets. They have stuck to the knitting and invested in areas based on this strength.

Other companies have struggled against this competition, searching for ways to compete in niches that the larger companies cannot enter.

In Africa or the Middle East, companies would be wise to focus on products that cannot be imported, e.g. fresh or chilled meats versus frozen, or shell eggs versus liquid egg products.

Finally, there are examples of companies that have branched into other markets successfully. The sale of composted manure by companies such as Morning Fresh or the use of poultry by-products to build pet food and other business by companies such as Simmons Pet Food Inc. are good examples of growth through adjacencies.

For your own business ask yourself: How successful have you been in the poultry business? How do you serve your customers? How do you produce your product? What are your skills in sourcing materials and inputs? This is the starting point for identifying your repeatable formula.

Defining the core of a company is the foundation to a modern business strategy. The core is what makes a company unique and is the key source of competitive advantage. Leadership economics involves finding an area of unique strength to build on—a set of customer situations, channels, locations or products where the company has a competitive advantage. As we listen to a louder consumer voice now, it is even more critical to shift from the mindset of just being in the poultry business to recognizing your role in a food industry that must feed an additional billion people by 2020. ?

Damien McLoughlin is Anthony C. Cunningham professor of marketing at UCD Michael Smurfit Graduate Business School in Ireland. He presented “Profiting from your Core” to more than 240 members of the poultry industry at Alltech’s annual breakfast meeting during the International Production and Processing Expo, Wednesday, January 30, 2013.
Call Us for consultancy and supply of Day old Chicks, Poit of lay Birds, and Battery cages>

Dr Paul Oche Adoyi
Farmergiant Nigeria Limited. Lagos.
Farming, Farming Consultancy and Farm Supply.



Table Egg production via the process of raising poultry layer birds from Point Of Lay (POL)  for the purpose of producing table eggs and birds using battery cage. 2,400 POL birds, feeding and medication of the birds and sales of eggs and spent layers produced from them in the first one and half year after construction, increasing the number thereafter 5,000 Birds in the second year utilising Day Old Chicks, 10,000 capacity in the third, and 20,000 in the fifth.
In the first year, at peak production, the farm should produce about 60 crates (30 eggs/crates) per day and generate N1.1million in revenue and about grossly N0.4million as gross profit after deduction of cost of feed on monthly basis. Spent layers would be sold at the end of one year of lay and utilised in the purchase of replacement birds. Annual revenue could be up to 16 million naira and profit grossly could be up to 4.5 million in the first year. At full capacity, the project, housing 20,000 laying birds would generate upto 70 million naira in revenue and about N17.0 million on net profit every year.

1.1 Business Overview
Egg production is the most popular form of of poultry farming because egg consumption cut across wide divide. Poultry production come in different forms ranging from parent stock breeder meat (broiler/production), egg production, Quail production, turkey production, ostrich farming, duck farming, Geese farming and ornamental bird rearing among other.  The business could also come in specialisation such as brooding, Point of Lay production, liquid egg package, egg trading, cold room marketing, day old chicks, feed milling, birds transportation or egg deport business.  Because of the vastness of this industry, entrepreneurs focus will be on an aspect and with time add other aspect either for vertical or horizontal integration in Nigeria, this industry is still grossly untapped and any part of the industrial possess great potential.  Specialisation and continuous improvement on skills is always paramount.
Poultry industry is a multi billion naira industry:  The major hindrances to the growth of the industry in Nigeria ranges from absence of credit, high interest rate, high cost of maize, unavailable electricity which is important for cold rooms, incubators and operation of automated cages.  Because of the fallow nature of the industry in Nigeria, the prospect is high.  Right now the demand for egg, broiler meat, day old chicks, day old poult etc remain overwhelmingly high.

1.2 Description of Business
Mr Poultry’s plan to participate in chicken egg production.  The business entails keeping of chicken from (Day old to)  fourteen weeks when the growers will be transfer to cages.  The caged birds at the  age of 19 – 22 weeks start to lay eggs.  The eggs are packed in crates  of 30 packs, transported to the city where they are distributed to  customers.  The laying birds by the age of 60 to 75 weeks of laying, are sold out as  spent layers for meat.

1.3 Vision and Mission

-  To produce nutritious eggs,  generate employment, and create wealth for investor.

-Build a mechanised poultry that is efficient. And rewarding .
1.4 Value Proposition

Poultry Production for wealth creation.
1.5 Critical Success factors of the business

A. Finance:  Fund must be available as when needed according to  plan to avoid creating stress factors which would cost so much in revenue loss

B. Expertise:  The poultry industry is knowledge based home employment of expertise is imperative.  Consultancy is paramount.  Training and retraining of staff is sacrosanct no mather how small the level and acquisition of knowledge of modern trend is a factor to growth.

C. Housing: Proper ventilation and spacing is a critical success  factor.  Position your house to give the birds maximum ventilation  and reduce heat.
D. Biosecurity:  Disease entrance and spread are as a result of any  form of breach in biosecurity.  Foot bath, car bath, prohibition of  un authorized persons etc.
E. Water:  Watering and water source is of great importance.  Foul  water source or water getting contaminated in poultry house  signifies that the farm will fail.  Water should be managed to  ensure that clear and clean water is available for bird ad libitum.
F. Nutrient: Most farm fail because they wanted to reduce cost of  feed  by compounding farms should only venture into self  compounding on  ground with available experiment.  All nutrients  must be readily  available in the market to prevent malnutrition.
G. Sales:  Egg produced must be sold.  Proper marketing with  vigorous advertisement will ensure the product is made available  to the target market.
H. Management:  Pilfering shrinkages, indulgence, misappropriation  are few of the several epidemic that constantly plaque poultry in Nigeria.  Workers steal eggs, birds, feed, money and even drugs if  they are not properly monitored.  Sales agents and drivers could  sell at different prices and report differently. Effective  management of this ends are critical factor.
I. Administration: . At full capacity,Management is separated from administration,  when the owner is not directly involved in day to day management.  Absentee farming is hazardous.  Someone with stake in the  venture should give quality time to it to survive.

1.6  Current status of the industry.

The poultry industry in Nigeria is largely untapped.

      1.7  Contribution to National and local economy.

The poultry will provide employment in the first year for at lease two persons.  By five years at full capacity it would employ about 14 persons.  Contractors and suppliers should also benefit.  Nationally, it will  reduce cash flight or lost in Forex and generate about N17 million per annum in revenue.  The banks, insurance companies and Agricultural consulting firms shall all be beneficiaries with the attendant tax going to the government. The investors shall also have find a means of expressing their entrepreneurial skill.  The manure will service  proximal farms and far farms.  Egg marketers, maize or feed  suppliers, transporters, spent birds marketers etc shall all be affected positively.  The impact on the economy will be positive.
3.1  Operational Detail
Attendants and manager get to the pen latest 6.30am.  Mix disinfectant and pour at the entrances.  Change into work cloth and foot wears.  Soak their legs with the disinfectant as well as wash hand with same.  Each nest is observed for discomfort birds sick or dead.  Such animals are then culled and recorded.  Water is checked each Tip is tested to ensure normal flow.  Blocked Tips are cleaned or replaced.  Feed (already measured) is given to the birds by evenly pouring them into the trough.  Eggs are packed from the cage using basket or directly into the crates.  Record is taken; this shall include number of morbidity, number of mortality, number of eggs, abnormal observation on feaces or in the pen etc.  The eggs now packed in crates, are taken to the store room for onward transport out to the city facility.

3.5 Staff Housing.

Attendants shall and should be housed in the farm or in close proximity for the sake of emergency such as insect attack, late feeding, brooding and security.

3.6 Infrastructural cost for Start up with 2,400 birds.

 >land – N660,000
> Poultry house -(12m*25m) N1.7million
> Borehole – N150,000
> Delivery van – N
> Staff house – N380,000
> 20 units of Battery cages- N1.8 million
>Feed to lay – N341,000
> Point of lay birds -N2.28million
> Utility – N30,000
TOTAL = N7,341,000

3.7 City facility

A shop within the town shall serve the ware house feed and as depot for the produced eggs.  Feeds from the company will be truck load.  Sales to other farmers will generate additional income and provide the farm with reduce cost.  When buyers buy from the farm egg outlet, it reduces visitation to farm which has attendant risk of break of security and biosecurity.
Following the completion of  physical structures, Semi-automatic battery cages of premium quality will be purchased and installed in for 2,400 capacity pen. 20 units of 120 birds per unit capacity cages will be utilised to hold at least 2400 birds.


The Stocking plan involves the purchase of 2400 Birds as POL which will be placed in the first year. The birds will be purchased at 14 weeks age and hence will take 6 weeks to come to lay. They should peak by age week 30 when they are 17 weeks In the farm and spent by week 70 weeks and thereafter sold as Old Layers. Within one month, the Spent Layers should have been sold out.  5 to 10% mortality room is allowed


Biosecurity measure will be put in place to prevent disease outbreak. Foot bath for visitors and workers will be put in place at the entrances. Every vehicle coming into the facility will also pass through a bath and get sprayed. All quality control standards will be adhered to strictly so as to produce a world class standard. Animals and materials will be kept away from the poultry pens. Biosecurity training will be mandatory given to attendants and other staff



The major material inputs required for the success of this proposed project are Point Of Lay, Feed (Grower mash, and Layer mash), various types of medications when needed and vaccinations according to schedules. The current prices and sources of these inputs as stated below are safe, dependable and readily available.  Plan to utilize Vital feed from UAC plc. With the consumption of 7 tons per month of Feed which is the expected requirement for 2400-capacity poultry, Poultry will be qualified for 12% discount on prices of Feeds from UAC.


 Mr Poultry shall employ a Marketer at full capacity. He would be employed to sell the eggs from one egg deport to another/ through the marketing activities, many clientele base shall be created. These customers will be allocated dates. They either pick up the eggs from the farm on their dates or have it delivered with the farm van at a price. All customers shall only be given allocation with a confirmation of a bank payment. To expand the clientele base, advert will be placed on different fora online.


The projected revenue from the project is mentioned in the summary. The revenue projection for the first year in lay is in the figure of N9 to N17.5million from the sales of eggs and spent layers.


The projected cash flow for the Farm could be presented on request.. Positive net cash balances are realized at the end of second laying year. From the projection, the farm shows profitability.


There is no reasonable profit visible in the first year of the project due to huge investment cost but subsequent recorded reasonable profits.

Mr Poultry farm shall be a success. Poultry Farming is a highly developed industry. Its efficacy and productivity is a product of bringing together of all the available industrial facilities, this can never be provided enough by just one individual or company, hence Mr Poultry plan to collaborate with investors and experts. The industry works effectively as a network with different specialisation, bringing in diverse inputs. Also, to avoid overcrowding of ideas and thinning of the limited resources, focus will be on egg production for a long time under the supervision of an experienced consulting firm.  Success is granted, God being by our side. Lagos is a large market and strategically located to expand and serve the rest of the nation and beyond.

(For consultation, Point Of Lay birds, Cages and building a workable poultry call: 08099515923. Dr Paul will be available for