BUSINESS PLAN FOR INTEGRATED POULTRY VENTURES

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TABLE OF CONTENTS

I     Executive Summary……………………………………………………………….3

II  Concept and Opportunity……………16

IV The Company………………………………………………………………………22

V Nigerian Business Environment…………………………………………………..23

VI The Poultry Industry……………………………………………………………....27

VII Market Analysis……………………………………………………………………..38

VIII Competition Analysis………………………………………………………………...............................42

IX Risk Analysis and Mitigants…………………………………………………………47

X Implementation Plan and Strategy………………………………………………49

XI Business Exist Strategy………………………………………………………………………56 XII Financial Analysis…………………………………………………………………………58

XII Appendices…………………………………………………………………………..............61

 EXECUTIVE SUMMARY

With continued economic growth and changing consumer preferences, protein demand in developing countries like Nigeria is increasing, especially for such products as beef, fish, poultry and eggs. Also due to changes in lifestyle and greater awareness for healthy living, the demand for lean, easy-to-cook meat and low-calorie food products implies increasing demands for poultry products. Despite this increasing demand and growth in GDP, Nigeria lags behind many developing countries in terms of production of poultry products. This forms the basis why many of the major producing countries target Nigeria as a market for their products. With a population figure of about 175 million and per capita annual poultry meat consumption of 1.7kg (2013), total demand for poultry meat is estimated at 290,000 MT in Nigeria. A set of estimates based on GPS import, PS and day old chick production shows that the annual meat production capacity of the commercial poultry sector in Nigeria is estimated to be 137,000 MT. This highlights the huge opportunity for investing in poultry business in Nigeria. The gap between the local production and demand is filled by illegal smuggling of the products through the porous Nigerian international boundaries. Furthermore, with the ban on importation of poultry products by the Federal Government still in force and the current favorable climate occasioned by several government initiatives targeted at growing and strengthening the agricultural sector, the time to invest in agriculture, and especially the poultry sector, has never been better.

XYZ Integrated Poultry Farm (XYZ FARMS) is therefore being established to seize the opportunity of a looming supply gap for high quality poultry products that exists particularly in the country.

XYZ FARMS is setting up an integrated ultra-modern poultry farm in ABC village, near Owerri in Imo State, South-East Region of Nigeria. The operations shall span key elements of the poultry value chain, including a broiler farm, layers farm, feed mill and value-added processing plant. The key objective of the company is to align with the Federal Government agenda on food security in the production of poultry products that will fill the supply gap and meet the demands of the teeming population.

The development will be in phases that will start with the broiler production and progress to egg production and other links in the poultry value chain.

XYZ FARMS’s key differentiating strategy shall be to deliver a research-based, customer-focused product mix that will appeal to a wide spectrum of consumers such as individuals (particularly urban consumers), hotels, restaurants, caterers and institutions. It is important to note that most urban consumers and  businesses prefer to buy their chicken dressed or in parts (thighs, legs, breasts, etc.) to save cooking time.

XYZ FARMS seeks to fill this gap by making pre-cut chicken parts its flagship product.

WINRARZIP

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