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.

Hens, quails, guinea fowls, ducks and various other birds can be comfortably reared in a poultry. Chicken and birds are widely consumed in all parts of the world hence there is a large market for poultry farmers. If you are looking towards starting a livestock breeding business, then one of your options is to settle for poultry farming. Poultry farming is a highly thriving and profitable business venture.

Asides from the fact that people consume the meat, supply of eggs is also a major source of revenue generation for poultry farmers. Players in the poultry farming and egg production industry basically raise chicken for meat and egg production. The eggs produced may be sold for use as table eggs or hatching eggs.

Having provided you with a:

  1. Industry Overview
  2. Market Research and Feasibility
  3. Poultry Farm Business Plan
  4. Marketing Plan
  5. Licenses and Permits
  6. Cost of Starting a Poultry Farm
  7. Poultry Business Name ideas
  8. Marketing ideas

We will consider how much it cost to start a poultry farm business from scratch including the operating costs.

  • Industry Overview

According to studies and researches, the cost of starting a commercial poultry farm in the United States of America or any other place in the world is capital intensive. However, the expenses would reduce especially as the first items and equipment needed to start are a one-time expenses only.

The only time the start-up capital is low is when the entrepreneur is either starting off on a small scale or is going into the provision of niche poultry farm services. Also, another reason for low or high start-up capital might be dependent on the kind of poultry farming – free range, deep litter system, semi litter system, and battery caging system – the entrepreneur is planning on going into.

Statistics also has it that an estimate of about 35 companies are involved in the business of raising, processing and marketing birds on a commercial level; they export processed chicken and eggs to other countries of the world. It is on record that Americans consume more chicken than anyone else in the world – more than 90 pounds per capita in 2015.

Chicken is the number one protein consumed in the United States. In 2015, almost 9 billion broiler chickens, weighing 53 billion pounds (live-weight) were produced. More than 40 billion pounds of chicken products were marketed on a ready-to-cook basis.

The United States of America has the largest broiler chicken industry in the world, and about 19 percent of the eggs and chicken produced were exported to other countries in 2015. Research conducted shows that the top 5 broiler producing states in the US are Georgia, Arkansas, Alabama, North Carolina and Mississippi.

If you are looking towards leveraging on the agriculture industry to generate huge income, then one of your best bet is to start a poultry farm and egg production business. One thing is certain about starting a poultry and egg production business, if you are able to conduct your market research and feasibility studies, you are likely not going to struggle to sell your eggs and chicken because there are always food processing companies and consumers out there who are ready to buy from you.

How Much Does It Cost to Start a Poultry Farming Business?

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.

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.

How Much Does It Cost to Start a Poultry Farm in the UK?

These are the key expenses you are expected to make when starting a medium scale but standard poultry farm business in the United Kingdom;

  • In the United Kingdom, Online applications are usually registered within 24 hours and cost £12 (paid by debit or credit card or PayPal). Postal applications take 8 to 10 days and cost £40 (paid by check made out to ‘Companies House’). There’s a same day service costing £100.
  • 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) – £13,300
  • 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.
  • The cost for hiring a business consultant (including writing business plan) – £2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – £28,400.
  • The cost for leasing a large farm land – £187,000.
  • The cost for the construction of a standard poultry facility with the right fencing – £195,000.
  • Other start-up expenses including stationery (£300), phone and utility (gas, sewer, water and electric) deposits (£1,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – £60,000.
  • The cost for the purchase of poultry feed and poultry medication – £33,000.
  • The amount required for the purchase of the first set of various birds, chicken, turkey, quails, guinea fowls, ducks et al – £98,000.
  • The cost for acquiring the required working tools and equipment, machines, hatchery et al – £98,000.
  • The cost for store equipment (cash register, security, ventilation, signage) – £9,500.
  • The cost of purchase and installation of CCTVs – £4,500
  • The cost for building and hosting a website – £600
  • The cost for opening party – £6,300
  • Miscellaneous – £8,000

You will need an estimate of seven hundred and thirty thousand Pounds Sterling (£730,000) 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 Kingdom. 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 Kingdom will cost from four thousand five hundred Pounds Sterling to one hundred and twenty four thousand Pounds Sterling (£4,500 to £124,000). 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 Kingdom, then you should look towards budgeting well over one million, eight hundred thousand Pounds Sterling (£1.8 million). Please note that this amount includes the salaries of all the staff for the first 3 months of operation.

How Much Does It Cost to Start a Poultry Farm in Canada?

These are the key expenses you are expected to make when starting a medium scale but standard poultry business in Canada;

  • For federal incorporation of business in Canada, the cost to incorporate is $200 if filed online through Corporations Canada’s online Filing Centre, $250 if filed through other means.
  • 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.
  • 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.
  • The cost for hiring a business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
  • The cost for leasing a large farm land – $200,000.
  • The cost for construction of a standard poultry facility with the right fencing – $200,000.
  • Other start-up expenses including stationery ($500), phone and utility (gas, sewer, water and electric) deposits ($6,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
  • The cost for the purchase of poultry feed and poultry medication – $35,000.
  • 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 ($750,000CAD) 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 Canada. 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 Canada will cost from five thousand Dollars to twenty five thousand Dollars ($5,000CAD to $25,000CAD). 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 Canada, then you should look towards budgeting well over two million dollars ($2 millionCAD). Please note that this amount includes the salaries of all the staff for the first 3 months of operation.

How Much Does It Cost to Start a Poultry Farm in Australia?

These are the key expenses you are expected to make when starting a medium scale but standard poultry farm business in Australia;

  • In Australia, the fees to register your business name with ASIC include: $34 for 1 year. $80 for 3 years.
  • 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.
  • 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.
  • The cost for hiring a business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
  • The cost for leasing a large farm land – $200,000.
  • The cost for construction of a standard poultry facility with the right fencing – $200,000.
  • Other start-up expenses including stationery ($500), phone and utility (gas, sewer, water and electric) deposits ($6,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
  • The cost for the purchase of poultry feed and poultry medication – $35,000
  • 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 (AUD$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 Australia. 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 Australia will cost from five thousand dollars to twenty five thousand dollars (AUD$5,000 to AUD$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 Australia, then you should look towards budgeting well over two million dollars (AUD$2 million). Please note that this amount includes the salaries of all the staff for the first 3 months of operation.

Estimating Start-Up Cost for Poultry Farm Business was Based on the following factors;

  • Specific Location

Predators are one of the major challenges poultry owners face and that is why it is necessary to have an effective fencing option when designing your poultry farm and choosing a location. Poultry farmers in the United Kingdom and other part of the world are always improvising on ways to keep foxes away from their poultry. The truth is that if foxes or other predators can find their way into your poultry; they are likely going to keep coming until they eat up all the available birds in the poultry.

The major poultry fencing option available are Chicken Wire which is also known as rabbit wire in the market place and Chicken Netting. The choice you make on the best poultry fencing option that you want to use in your poultry farm will be largely dependent are some factors.

Some of the factors to consider before choosing the right poultry fencing option are the kind of predators your birds will be exposed to, climatic condition of the location you intend building your poultry farm and also the geographical composition of your choice location.

  • Staff/Manpower

When it comes to starting a standard poultry farm business on a large scale, you would need the services of the following professionals;

  • Chief Operating Officer
  • General Farm Manager
  • Human Resources and Admin Manager
  • Accountant/Cashier
  • Sales and Marketing Executive
  • Field Employees
  • Cleaners
  • Security Guard

Can a Poultry Farm Business be Bootstrapped on a Lean Budget Right from Home?

If you a looking for a small scale business that you can successfully bootstrap on a lean budget right from your home, then you should consider starting a poultry farm business. This is possible if you have enough space in your compound. The truth is that people that live in rural communities find it pretty easy to either start a poultry farm at their backyard or start a small garden or both.

All you have to do is to construct a portable poultry with the right poultry wire and fencing, purchase some poultry birds or chicken, poultry feed and poultry medication. As a matter of fact, you can start a poultry farm with as low as two thousand dollars or even less depending on how small you want the business to be.

The challenge here is that you must be ready to take on more than half of the available roles in the business. You should be able to serve as the general farm manager, accountant, security guard and sales and marketing officer et al.

How Much Does It Cost to Buy a Poultry Farm Franchise?

From available research conducted, there are no known fully operational poultry farm in the United States of America, United Kingdom, Canada and Australia that is into franchising. Most players in this line of business are adopting strategies that will help them sell their birds and eggs beyond the city, state or country where their poultry farm in domicile to other parts of the world as against selling franchise.

Besides, it is easier to start and run a poultry farm from scratch to profitability without leveraging on a known brand name. People will patronize your birds/chicken and eggs based on accessibility and pricing as against relying on a brand name.

  • Financing Your Poultry Farm Business

Even though the poultry farm business is regarded as a lucrative business, it does not therefore mean that everyone gets the financing they require for this business, as it is regarded as a lucrative but highly risky business. Financing a business is not only important, but it determines if a business idea would kick off and become a reality or just remain as a business idea.

Most entrepreneurs do not relish the fact of having to source for start-up capital as the requirements can be cumbersome and very strenuous; however, every serious entrepreneur knows the importance of finance. This is the reason why one needs a business plan on ground.

Some of the options that will be available to you when it comes to raising money to finance your poultry farm business in the United States of America are;

  • Applying for credit facility from the relevant government agency
  • Sourcing for grants from public and private institutions
  • Raising money from personal savings
  • Sourcing for loan from family and friends
  • Applying for loan from the bank