Do you want to start a poultry processing plant? If YES, here is a complete guide to starting a poultry processing plant business with NO money and no experience.
A lot of people all around the world consume poultry (chicken, turkey, quail, guinea fowl, duck et al) on daily basis, and as such, there is a need to have poultry processing plants to able to meet the needs of consumers and to maximize profits for poultry farmers.
As a budding entrepreneur, if you have the required startup capital and perhaps the experience, then you should consider starting your own poultry processing plant company. It is important to note that a poultry processing plant business is one of the businesses that can’t go out of fashion because people eat poultry meat in different forms on daily basis.
Depending on the scale you want to start, the startup capital for this type of business is considered to range from moderate to high. As a matter of fact, it is advisable to run a poultry farm alongside your poultry processing plant if indeed you want to maximize profit in this business.
To be on the safe side, before launching this type of business, it will do you well to carry out your due diligence as it relates to market research, economic and cost analysis and of course feasibility studies. If you get things right before launching your poultry processing business, it will not take you long before you break even and start smiling to the bank.
Lastly, if you want to start your own poultry processing plant business, all you need do is to read this article and you will be well equipped. You can start your poultry processing plant business from a small town in the United States and if you are consistent and creative, it won’t be too long before your brand becomes a nationally and internationally recognized.
Steps to Starting a Poultry Processing Plant Business
1. Understand the Industry
Poultry processing plant business falls under the Meat, Beef and Poultry Processing industry and players in this industry basically slaughter poultry, process and package the meat into products and by-products. The industry is also involved in purifying and refining animal fat, bones and meat scraps.
Products are sold to other food manufacturers, renderers, grocery and meat wholesalers and retail traders. It is important to state businesses that primarily cut and pack meats from purchased carcasses are also part of this industry.
Even though meat consumption based on per capita income is expected to remain stagnant in the next half decade, economic woes before this period aggravated consumption decline.
Because of recovering consumer sentiment, population growth and strong export demand, meat-processing revenue is projected to increase going forward. In spite of the stability of consumer demand for meat-based products; unpredictable weather conditions and disease outbreaks can cause instability in the revenue generated by industry players.
The Meat, Beef and Poultry Processing Industry is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries. Statistics have it that in the united states of America alone, there are about 5,664 licensed and registered Meat, Beef and Poultry Processing companies directly responsible for employing about 480,178 employees.
The industry rakes in a whooping sum of $225 billion annually with an annual growth rate projected at 1.4 percent. It is important to state that the establishments with lion shares of the available market in this industry are Cargill Inc., JBS SA, Inc., Tyson Foods and Smithfield Foods.
Several researches conducted linked red meat consumption with increased risks of several diseases, hence the need for nutritional awareness among consumers. As a result of this, consumers have started choosing white meat instead of beef and pork. Nonetheless, the prices of these products have risen faster than those of poultry, making this segment’s share of revenue to also increase.
Statistics also has it that an estimate of about 35 companies are involved in the business of raising, processing and marketing poultry on a commercial level; they export processed poultry 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. So also, in 2015, almost 9 billion broiler chickens, weighing 53 billion pounds, live – weight, were produced. More than 40 billion pounds of chicken products was marketed on a ready-to-cook basis.
The poultry processing plant business will continue to blossom because people will always want to eat poultry. Despite the fact that the industry seems over-saturated, there is still room big enough to accommodate aspiring entrepreneurs who intend opening their own poultry processing plant in any part of the United States of America.
Lastly, if you are looking towards leveraging on the food processing industry to generate huge income, then one of your best bet is to start a poultry processing plant company.
One thing is certain about starting your poultry processing plant business, if you are able to conduct your market research and feasibility studies, you are likely not going to struggle to sell your products because there are loads of distributors and consumers out there who are ready to buy from you.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
Every industry has folks that patronize them. Those who buy and consume processed poultry food cut across all genders and age groups. The reality is that when it comes to selling processed poultry, there is indeed a wide range of available customers.
In essence, your target market can’t be restricted to just a group of people, but all those who reside around the locations where you have your poultry processing plant.
3. Decide Which Niche to Concentrate On
There is no clear niche area in the poultry processing plant line of business because the poultry processing plant business is a niche area in the meat, beef and poultry processing Industry, and every player in this line of business simply process and distribute various types of processed poultry meat (chickens, turkey, various birds, quails, guinea fowls, ducks et al).
So, if you are looking towards starting your own poultry processing plant business, then you should clearly define your market so that you will be able to get a fair share of the available market in the industry.
The Level of Competition in the Industry
The competition that exists in the poultry processing plant line of business goes beyond competitions amongst poultry processing plants in your location; you are expected to contend with all the players in the meat, beef and poultry processing industry. So, it will be right to say the competition in the poultry processing plant business is tough.
The truth is that no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your products or business properly, you will always make headway in the industry.
Just ensure you always have varieties of organic and non-organic processed poultry meat for distribution, you can deliver excellent customer care services and you know how to attract and reach out to your target market.
But by and large, there are several poultry processing plants and other players in the meat, beef and poultry processing industry whose products can be found in grocery stores and supermarkets all around the United States. As such, if you choose to start your own poultry processing plant business in the United States, you will absolutely meet stiff competitions all round.
4. Know Your Major Competitors in the Industry
Some brands perform better or are better regarded by customers and the general public than others in every industry. Some of these brands are those that have been in the industry for a long time, while others are best known for how they conduct their businesses and the results they have achieved over the years.
These are some of the leading meat, beef and poultry processing plants in the United States of America and in the globe;
- Cargill Inc.
- JBS SA, Inc.
- Tyson Foods
- Smithfield Foods
- Hormel Foods Corp.
- National Beef Packing Co. LLC
- ConAgra Foods Inc. (Consumer Foods)
- OSI Group LLC
- SYSCO Corp.
- Keystone Foods LLC
- American Foods Group LLC
- Greater Omaha Packing
- Oscar Mayer (Part of Kraft Heinz Co.)
- Superior Poultry Processors Ltd
- Meyn America LLC
- Caviness Beef Packers Ltd.
- Dallas USA Foods
- House of Raeford Farms Inc.
- Fresh Mark Inc.
- West Liberty Foods LLC
If you want to successfully launch a business and maximizing profits, then you need to guarantee that you get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.
Poultry processing plant business is not a Green business as you will come across several brands of processed poultry products in grocery stores and supermarkets when you drive through town.
So, if you are mapping out your economic and cost analysis for your poultry processing plant business, you should carry out costing of the amount needed for renting or leasing a standard facility where you are expected to build your plant, the amount required to purchase processing machines, supplies, distribution trucks and also the running cost of the business.
If you want to start a poultry processing plant business, then your concern should not be limited to the cost of renting or leasing a standard facility where you are expected to build your poultry processing plant, but also on branding and on how to build a robust distribution network and clientele base.
The truth is that if you are able to build a robust distribution network and clientele base, you are sure going to maximize profits in the business.
5. Decide Whether to Buy a Franchise or Start from Scratch
When it comes to starting a business of this nature, it will do you good to start from the very scratch because from available research, there are no known brands in the meat, beef and poultry processing industry that sells franchise.
You have to note that most of the big and successful beef, meat and poultry processing plants whose products can be found in grocery stores all across major cities in the world started from the scratch and they were able to build a solid business brand.
It takes enthusiasm, hard work and willpower to achieve business success and of course you can build your own poultry processing plant to become a successful brand all across the cities where your processed poultry foods are distributed and sold.
6. Know the Possible Threats and Challenges You Will Face
Aside from health apprehensions which is a major threat for processed foods, if you decide to start your own poultry processing plant business today, one of the major challenges you are likely going to face would be the presence of well – established players in the beef, meat and poultry processing plant industry whose products can be found in grocery stores and supermarkets. The only way to avoid this challenge is to create your own market.
Some other threats that you are likely going to face is economic downturn; if the economy is in bad shape, poultry processing plants usually struggle to maintain their old customers or even welcome new customers.
So also, unfavorable government policies can also hamper the growth of your poultry processing plant business. There is nothing you can do as regards these threats and challenges other than to stay positive that things will work well for you.
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
When starting a poultry processing plant business, the legal entity you choose will go a long way to regulate how big the business can grow. You are free to either choose a general partnership or limited liability Company for your poultry processing plant business.
Ordinarily, general partnership should have been the ideal business structure for a small – scale poultry processing plant business especially if you are just starting out with moderate startup capital and you intend covering a regional market.
But if your intent is to grow the business and have chains of distribution networks spread across the United States of America and other countries of the world, then choosing general partnership is not an ideal option for you. Limited Liability Company, LLC will suit the purpose.
Take for instance, Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for sole proprietorships and general partnerships.
Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholders meetings and other managerial formalities.
These are some of the factors you should consider before choosing a legal entity for your poultry processing plant business; limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and of course taxes.
If you take your time to critically study the various legal entities to use for your poultry processing plant business with the ability to export your processed poultry foods and open chains of distribution network all across the United States of America and other countries of the world, you will agree that limited liability company; an LLC is most suitable.
You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.
8. Choose a Catchy Business Name
When it comes to cherry-picking a name for your business, you should be imaginative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.
If you are considering starting your own poultry processing plant business, here are some catchy names that you can choose from;
- Pouria Pot® Poultry Processing Plant, LLC
- Clarisse Bowen™ Processed Foods, LLC
- Zara Leo – Banes© Chicken Processing Plant, Inc.
- Chicken Arena® Poultry Processing Plant, Inc.
- T D Holmes™ Poultry & Meat Process, Inc.
- Ruth Alfred & Family© Poultry Processing Plant, Inc.
- Rite Chicken® Poultry Processing Plant, LLC
- Food Gates© Poultry & Meat Processing Plant, Inc.
- Chicken Continent© Chicken Processing Plant, Inc.
9. Discuss with an Agent to Know the Best Insurance Policies for You
In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your poultry processing plant business.
Here are some of the basic insurance covers that you should consider purchasing if you want to start your own poultry processing plant business in the United States of America;
- General insurance
- Health/Medical insurance
- Liability insurance
- Workers Compensation
- Overhead expense disability insurance
- Building/Plant insurance
- Business owner’s policy group insurance
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
If you are planning to open your own poultry processing plant business, you may not have any need to file for intellectual property protection/trademark because the nature of the business allows you to run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection.
If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO.
11. Get the Necessary Professional Certification
When it comes to operating a poultry processing plant business, you do not need to have any special certifications before you can be allowed to run the business in the United States of America and in all countries of the world. All you need are formal and informal training that will expose you to the in and out of effectively running the business.
12. Get the Necessary Legal Documents You Need to Operate
The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations.
If you do, it won’t be too long before the long hand of the law catches up with you. These are some of the basic legal documents that you are expected to have in place if you want to legally run your own poultry processing plant business in the United States of America;
- Certificate of Incorporation
- Business License
- Tax Payer’s ID/Tax Identification Number
- Foods and drinks handler certificate
- Health inspection Certificate
- Proof of district-issued food and drinks manager identification card
- Copy of license for the service support facility and/or a recent inspection report
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Company Bylaws
- Memorandum of Understanding (MoU)
- Building License
13. Raise the Needed Startup Capital
When it comes to financing a business, one of the first thing and perhaps the major factors that you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.
Here are some of the options you can explore when sourcing for startup capital for your poultry processing plant business;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Selling shares to interested investors
- Applying for Loan from your Bank
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source for soft loans from your family members and your friends
14. Choose a Suitable Location for your Business
When it comes to choosing a location for your poultry processing plant business, the rule of thumb is that you should be guided by the demand for processed poultry and easy access to poultry birds directly from poultry farmers if you don’t run your own poultry farm alongside your poultry processing plant.
Of course, if you are able to secure a central location for your poultry processing plant business, it will help distributors and customers to easily locate your plant.
It cannot be overemphasized that the location you chose to open your poultry processing plant business is key to the success of the business, hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of people with the required purchasing power and lifestyle.
These are some of the key factors that you should consider before choosing a location for your poultry processing plant business;
- The demography of the location
- The demand for processed poultry foods in the location
- The purchasing power of the residents of the location
- Accessibility of the location
- The number of supermarkets and grocery stores that also sell processed poultry foods in the location
- The local laws and regulations in the community
- Traffic, parking and security
15. Hire Employees for your Technical and Manpower Needs
On the average, there are no special technology or equipment needed to run this type of business except for steamers, slaughtering tables, freezers, trays, knives, storage hardware (bins, utensil rack, shelves, food case), counter area equipment, packaging and sealing machines and receipt issuing machines.
You will also need computers, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
As regard leasing or outright purchase of a plant facility, the choice is dependent on your financial standing, but the truth is that to be on the safe side, it is advisable to start off with a short term rent/lease while test running the business in the location.
If things work out as planned, then you go on a long term lease or outright purchase of the property but if not, then move on and source for other ideal location/facility for such business.
When it comes to hiring employees for a standard poultry processing plant business with more than one outlet, you should make plans to hire a competent Chief Executive Officer (you can occupy this role), Admin and Human Resources Manager, Merchandize Manager, Plant Manager, Quality Control Manager, Plant Operators, Sales and Marketing Officers, Accounting Clerk and Cleaners.
On the average, you will need a minimum of 10 to 20 key staff members to run a small scale but standard poultry processing plant business.
The Service Delivery Process of the Business
When it comes to the business services process of poultry processing plant business, there are no hard rules about it. It is the duty of the merchandize manager to help the organization purchase different types of poultry birds if the organization doesn’t own their poultry farm.
They go out there to source for good purchasing deals and they also ensure that they only purchase at the right prices that will guarantee them good profits.
The poultry birds are slaughtered in clean and hygienic facility as approved by the regulating authority in the local council, under an air-chilled room, where the individual carcasses are cleaned up, chilled before packaging them in a foil-like plastic or can.
In some cases, if the poultry birds need to be cooked or grilled, they are first spiced and then undergo the cooking or grilling process before they are packed and ready for distribution.
It is important to state that a poultry processing plant business may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated poultry processing plant business process is not cast on stone.
16. Write a Marketing Plan Packed with ideas & Strategies
Generally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a poultry processing plant business, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well-known brands that determine the market direction for the meat, beef and poultry processing plant industry.
People will purchase your processed poultry foods if they know that they are going to get the best and of course value for their money.
Businesses these days are aware of the power of the internet and which is why they will do all they can to maximize the internet to market their products or services. In other words, a larger percentage of your marketing effort will be directed to internet users and your website will become your number one marketing tool.
These are some of the marketing ideas and strategies that you can adopt for your poultry processing plant business;
- Introduce your processed poultry food brand by sending introductory letters alongside your brochure to grocery stores, supermarkets, households, restaurants, fast food restaurants, hotels, motels and other key stakeholders in and around the city where your poultry processing plant is located.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across, so that those on the social media or those who read blogs will know your brand of processed poultry food when they need to purchase processed poultry within your location
- Create a basic website for your business so as to give your business an online presence
- Directly market your products
- Engage in roadshows in targeted communities from time to time to sale and promote your processed poultry food brands
- Join local meat, beef and poultry processing plant business associations for industry trends and tips
- Provide discount days for your customers
- Advertise our business in community based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of Word of mouth marketing (referrals)
17. Work Out a Reasonable Pricing for your Services & Products
One key factor that will help you sell your processed poultry foods at rock bottom prices is to run a standard poultry farm alongside your poultry processing plant as against getting supplies of poultry birds directly from poultry farmers.
The truth is that if you farm the chickens, turkeys, guinea fowls, ducks and other birds that you process, you would have succeeded in eliminating a lot of expenses that is associated with supply chain management especially if your poultry processing plant is in the same compound with your poultry farm.
Another strategy that will help you retail your processed poultry foods at the right price is to ensure that you cut operational cost to the barest minimum and channel your efforts towards marketing and promoting your brand name. Aside from the fact that this strategy will help you save cost, it will also help you get the right pricing for your products.
18. Develop Iron-clad Competitive Strategies to Help You Win
The availability of varieties of well – packaged processed poultry foods under your production line, your business process and of course your pricing model are part of what you need to stay competitive in the industry.
Another possible competitive strategy for winning your competitors in this particular industry is to build a robust distribution network and clientele base especially with high buying customers like grocery stores, supermarkets, restaurants, hotels, fast food restaurants et al.
Over and above, ensure that your organization is well positioned, key members of your team are highly qualified and can favorably compete with the some of the best in the meat, beef and poultry processing plant industry.
19. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
If you are in business and you are not deliberate about boosting you brand awareness and communicating your corporate identity, then you should be ready to take on whatever the society portray your business to be.
If your intention of starting a poultry processing plant business is to grow the business beyond the city where you are going to be operating from to become a national and international brand by opening chains of distribution networks and exporting your products, then you must be ready to spend money on promotion and advertisement of your brand.
No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand awareness and create a corporate identity for your poultry processing plant business;
- Place adverts on both print (newspapers and food magazines) and electronic media platforms
- Sponsor relevant community based events
- Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, YouTube, Google + et al to promote your poultry processing plant business
- Install your billboards in strategic locations all around your city or state
- Engage in roadshows from time to time in targeted neighborhoods to create awareness of your poultry processing plant business
- Distribute your fliers and handbills in target areas
- Contact grocery stores, supermarkets, households, caterers, restaurants, fast food restaurants, hotels, motels and other key stakeholders within and outside the city where your poultry processing plant is located informing them about your poultry processing plant business and the processed poultry meats you sell
- List your poultry processing plant business in local directories/yellow pages
- Advertise your poultry processing plant business in your official website and employ strategies that will help you pull traffic to the site
- Position your Flexi Banners at strategic positions in the location where poultry processing plant business is located.
- Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo