poultry farm business plan in india

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How To Start A Poultry Farm In India

Updated on : Jun 20th, 2024

Poultry farming is one of the fastest-growing agribusinesses in India. Poultry farming means animal husbandry, dealing with different types of domestic birds for eggs, meat and feather production.

Poultry farming is a part of agriculture. In India, the raising and breeding of different types of birds have been in existence for a very long time. It has evolved from a non-scientific and unorganised system to a more planned, methodical, commercial, structured and scientific system.

The Government of India has launched a National Livestock Mission to promote the poultry farm business in India. It is also investing and providing financial assistance to the BPL households to start a poultry farm business.

Benefits of Poultry Farming

• It is an excellent income generation source.
• It requires small capital investment compared to other business forms.
• It leads to an increase in employment opportunities.
• The business license can be acquired easily.
• It has a quick return on investment.
• There is always a demand for eggs and meat; thus, it is a continuous source of income.
• It requires fewer utility items like water, electricity, heat, etc., than other business forms.
• The business reaches the Break-Even Point (BEP) soon, i.e., a point where there is no loss and no profit in the business.
• It requires less maintenance.
• There is easy access to bank loans for this business due to the several agricultural schemes launched by the government.

Starting a Poultry Farm in India

The following things are required to start a poultry farm business in India:

Business Plan

You must create a business plan before starting a poultry farm in India. A business plan is a roadmap of the business that outlines goals and details of achieving them. The business plan for poultry farming should generally contain the following:

• Locating a suitable place to start the poultry farm.
• List of required equipment.
• Deciding on the bird variety on the farm.
• Details of processes such as broiler breeding, egg production, etc.
• Details relating to various resources for the business such as financial resources, human resources, management, etc.
• Plans for advertising and marketing strategies.
• Obtaining the required licenses and permissions.

Selection of Sector and Birds

After making a business plan, you should finalise the sector you cater to, such as meat production, chicken breeding, poultry feed production, egg production, egg and meat processing, etc. You can start a small poultry farm initially by selecting two-three birds and then include more birds depending on your business growth. 

Usually, poultry farmers raise birds like domestic chicken or fowl as broilers and goose, duck, peacock, quail, pigeon or turkey as layers. The three common categories of chicken in India are as follows:

• Broiler chickens – They have a high growth rate and reach a fully grown stage in eight weeks. They also have a high quantity of meat.
• Layer chickens – They are a unique breed under hens. They begin laying eggs from 18-19 weeks and can continue until 72-78 weeks. They can produce above 250 eggs each year.
• Rooster chickens – They are called cockerel when they are young and known as roosters when they become adults. They take time to grow but guard the hens that lay eggs because of their territorial instincts.

Finalising Location

The next crucial step is finding the appropriate location or land to establish a poultry farm. The land size varies depending on the scale and type of the business. These are types of poultry farms in India based on land size:

• Battery cage poultry farm – For this type, you require 4,000 sq ft for the birds and an additional 2,000 sq ft for other farm infrastructural needs. In a battery cage system, the birds will not be able to run or move freely.
• Free-range poultry farm – For this type, you require approximately 12,000 to 36,000 sq ft. The birds are let loose in the fields to free-range in this system.
• Semi-range poultry farm – In this type, the fowls are kept in coops and are provided with a paddock or small Penn to move around. For this type, you need around 8,000 sq ft of area.
• Completely wild poultry farm – In this type, birds are raised in a natural environment with many trees. For a completely wild system, you need around 44,000 sq ft area, where a bird will have about two sq ft of coop space and 15-20 sq ft of free-range space.

The other factors to consider while deciding the location are to find an area away from the city, preferably calm, safe, pollution-free, and easily accessible amenities such as a market to buy commodities and freshwater.

Arranging Funds

You should make plans to obtain funds to start the poultry farm. You can get financial assistance from a bank that provides bank loans for agriculture at low-interest rates. You may even apply for financial aid from many government schemes that support agricultural ventures. Even though you can borrow funds from your friends or relatives, applying for bank loans or government schemes is better as they provide tax rebates on the loan amount.

Required Licenses

The various licenses required to start a poultry farming business in India are:

• NOC (No objection certificate) from the local village panchayat, municipality and pollution board.
• Permission for electrical use since you will need a transformer based on your poultry business size.
• License from the groundwater department.
• Business registration, such as, proprietary firm, partnership firm or company.

Certain other licenses that you can obtain which are not mandatory but are useful are as follows:

• MSME/Udyam registration helps obtain various benefits such as Mudra loans, technology upgrade assistance, etc.
• Trademark registration for your poultry farm logo which prevents others from using a similar or identical logo.

The government is promoting poultry farming due to the increasing demand for poultry products in the Indian market. Hence, getting the permissions and licenses for poultry farming is easy.

It is necessary to take precautionary measures to ensure the birds’ safety and health, which will help their proper growth and nurturing. Providing nutritious food, clean water, and regular vaccinations to the poultry is essential. When you take adequate measures and have consistent regulations to manage the farm, you will not have to face huge losses due to diseases and other potential risks.

It is better to hire professionals to manage the farm. You can also join a farm business management course and get poultry farming training. There are many poultry farming institutes and training centres in India that provide professional training, a few of which are as follows:

• Dr B.V. Rao Institute of Poultry Management & Technology. 
• Central Avian Research Institute (CARI).
• Indira Gandhi National Open University. 
• National School of Open Schooling.

After establishing your poultry farming business, you must advertise and market it to acquire customers. Create a marketing plan to analyse the market’s demand and supply, and understand your target consumers. Promoting your business to your target customers will ensure they are aware of your poultry business. You can get customers by spreading word of mouth about your business.

You can even start a website of your business where you provide information about your poultry business. The website will ensure that your business has an online presence and provide a far wider reach. You can also advertise the business in local papers and make visiting cards and pamphlets for publicising your products. 

Cost of Poultry Farming

The cost you incur for starting a poultry business depends on the business size or scale. In India, the approximate cost involved in establishing a poultry business is as follows:

• For a small scale poultry farm – Around Rs.50,000 to Rs.1,50,000.
• For a medium-scale poultry farm – Around Rs.1,50,000 to Rs.3,50,000.
• For a large scale poultry farm – Around Rs.7,00,000 to 10,00,000.

In India, the poultry farming business is a profitable option. You can reach the BEP in just six months as many birds will start laying eggs at the age of six months. The profit that you can earn varies based on the business size. However, even when you are running a small size poultry farm, you can make a decent profit from it. You can also sell feathers and other farm by-products like gunny bags and manure, besides selling meat and eggs to make additional profit.

About the Author

Mayashree Acharya

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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Poultry Farm Business Plan: PPT, PDF Download

• Post last modified: September 1, 2024
• Reading time: 38 mins read

In this article, we will explore the key components of a comprehensive poultry farm business plan in India. We will discuss the importance of conducting a market analysis, developing a sound business model, creating a financial plan, and implementing an effective marketing strategy.

After reading the article you can download the Poultry Business Plan PDF as wel as Power Point Presentation for Investor or Bankers. You can also read the  poultry farm business plan in hindi , please use the google translator buttom floating at the right hand side of your screen.

Additionally, in this Poultry Farm Business Plan article we will analyze potential risks and challenges associated with poultry farming in India and provide practical risk management strategies. Whether you are a first-time entrepreneur or an experienced business owner, this Poultry Farming Business Plan article will provide you with valuable insights and practical tips for launching and running a successful poultry farm in India.

Why making a Poultry farm business plan is Important before you start?

Having a well-designed poultry farm business plan is crucial for any aspiring poultry farming entrepreneur in India. The following are some of the reasons why having a business plan is essential,

Provides direction and clarity: A business plan helps entrepreneurs to define their goals, objectives, and strategies for achieving them. Similarly, you must include all these aspects in the Poultry farm business plan befor you begin. It will help providing a clear roadmap for the business, outlining the steps required to launch and run a successful poultry farming.

Helps secure financing: A comprehensive business plan is often required by banks and investors to evaluate the viability and potential of a business. A well-designed poultry farm business plan can help entrepreneurs to secure financing, by demonstrating the potential return on investment and the risks involved.

Facilitates decision-making: A business plan helps entrepreneurs to make informed decisions about critical aspects of their business, such as pricing, marketing, and supply chain management. So, if a poultry farm business plan holds all such different scenarios and options, entrepreneurs can make well-informed decisions that maximize their chances of success.

Provides a framework for monitoring and evaluation: A business plan serves as a framework for monitoring and evaluating the performance of the business. Entrepreneurs must include in the poultry farm business plan to track their progress, identify areas that need improvement, and make necessary adjustments.

How big is poultry business in India?

The Indian poultry industry is a rapidly growing sector that has experienced significant expansion over the past few decades. It is one of the largest producers of eggs and broilers (chickens raised for meat) in the world, with a domestic market estimated to be worth over USD 17 billion. The industry is diverse and consists of various types of farms, ranging from small backyard production to large commercial operations.

The major types of poultry farming in India are broiler and layer farming. Broiler farming involves raising chickens for meat production, while layer farming involves raising hens for egg production. Both types of farming require specific infrastructure, equipment, and management practices.

In recent years, the Indian government has been promoting the poultry industry through various schemes and initiatives, such as the National Livestock Mission, the National Programme for Bovine Breeding and Dairy Development, and the Rashtriya Krishi Vikas Yojana. Additionally, the industry has been adopting various technological advancements, such as automation, biotechnology, and genetic selection, to improve productivity, efficiency, and quality.

According to a report by Research and Markets, the Indian poultry market is expected to grow at a CAGR of around 8% during the forecast period of 2021-2026. This growth is driven by several factors, including increasing demand for meat and eggs, technological advancements, and government support.

The broiler segment is the largest and fastest-growing segment in the Indian poultry market, accounting for over 80% of the total market share. The layer segment is also growing rapidly, driven by increasing demand for eggs and egg products.

The Indian poultry industry also has significant export potential, with a growing demand for poultry products in international markets. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported poultry products worth USD 113 million in 2020-21, primarily to Middle East and African countries.

Independent poultry farming business and backyard producers also compete in the market, particularly in the small-scale and local segments. These producers usually have lower production costs and rely on traditional management practices. However, they often face challenges such as lack of access to financing, lack of technical expertise, and limited marketing and distribution channels.

In terms of strategies, the major players in the Indian poultry industry are focusing on expanding their operations and increasing their market share. They are investing in new facilities, equipment, and technology to improve efficiency and productivity. They are also diversifying their product portfolio, such as introducing value-added products, organic and antibiotic-free products, and processed meat and egg products.

To compete effectively in the market, poultry companies are also focusing on building brand recognition and customer loyalty through effective marketing and promotional activities. They are also collaborating with other players in the value chain, such as feed manufacturers, breeders, and processors, to improve supply chain efficiency and reduce costs.

Poultry farm business plan to decide Target market and customer segmentation.

In the Indian poultry industry, the target market and customer segmentation can vary depending on the product and market segment.

For the broiler segment, which is the largest and fastest-growing segment in the Indian poultry market, the target market includes wholesalers, retailers, and end consumers such as hotels, restaurants, and households. The customer segmentation in this segment is based on the size and type of customer. For example, wholesalers and retailers may purchase large quantities of broiler meat, while end consumers may purchase smaller quantities for personal consumption.

In the layer segment, which is growing rapidly due to increasing demand for eggs and egg products, the target market includes wholesalers, retailers, and end consumers such as households and bakeries. The customer segmentation in this segment is based on the type and quality of eggs. For example, wholesalers and retailers may purchase eggs in bulk, while end consumers may prefer higher quality eggs with specific characteristics such as organic, free-range, or fortified with vitamins and minerals.

In addition, there is a growing market for value-added products in the Indian poultry industry, such as processed meat and egg products, organic and antibiotic-free products, and pet food. The target market for these products can vary depending on the product and market segment. For example, pet food products may target pet owners, while processed meat and egg products may target institutional customers such as hospitals, schools, and corporate cafeterias.

Poultry firm business Plan and it’s model

Type of poultry farm (broiler or layer):  The type of poultry farming business (broiler or layer) that an entrepreneur or investor chooses to establish in India depends on various factors such as market demand, availability of resources, and personal preferences.

Broiler farming is the most popular type of poultry farming in India, accounting for more than 80% of the total poultry production in the country. The demand for broiler meat is increasing rapidly due to the growth of the food service industry, urbanization, and changing dietary habits. Broiler farming is characterized by intensive production systems, with birds raised primarily for meat production. Broilers have a short production cycle of 6-8 weeks and require high-quality feed, good housing facilities, and proper disease management practices.

Layer farming, on the other hand, is the second-largest segment in the Indian poultry industry, with significant growth potential due to increasing demand for eggs and egg products. Layer farming involves raising birds for egg production, with birds remaining productive for about 72-78 weeks. Layer birds require different feed and management practices than broilers, and housing systems are designed to provide comfortable nesting and roosting facilities.

Entrepreneurs and investors should carefully consider the market demand and potential for both broiler and layer farming before deciding on the type of poultry farm to establish. They should also assess the availability of resources such as land, water, feed, and labor, and evaluate the technical and financial feasibility of each option. Finally, personal preferences and expertise should also be taken into account when choosing between broiler and layer farming.

Operational aspects of Poultry farm Business Plan.

Infrastructure requirements: For a poultry farm in India can vary depending on the scale of production and the type of farming system being used. Here are some general requirements for land, sheds, equipment, and other infrastructure:

• Land: Adequate land is essential for setting up a poultry farm. The minimum land requirement for a small-scale broiler farm is around half an acre, while for a layer farm, it should be at least 1 acre. However, for commercial-scale farms, the land requirement can be much higher. The land should be well-drained, fertile, and have good access to water and electricity.
• Sheds: The sheds should be designed to provide a comfortable environment for the birds and protect them from predators and harsh weather conditions. The size and design of the sheds will depend on the scale of production, the type of birds, and the climatic conditions. The sheds should have proper ventilation, lighting, and temperature control systems. The recommended floor space per bird is 1 square foot for broilers and 2-3 square feet for layers.
• Equipment: The equipment required for a poultry farm includes feeding and watering systems, egg collection and handling equipment, incubators, brooders, and other tools for bird management. The equipment should be of good quality, durable, and easy to maintain. It is important to select equipment based on the scale of production and the specific requirements of the farming system being used.
• Water and electricity supply: Adequate and uninterrupted water and electricity supply is essential for the smooth functioning of a poultry farm. A reliable water supply is required for bird hydration, cleaning, and sanitation purposes. A reliable electricity supply is needed for lighting, temperature control, and operation of equipment.
• Biosecurity measures: Biosecurity measures are important to prevent the entry and spread of diseases in a poultry farm. The farm should have a secure boundary, and all visitors should follow proper hygiene and sanitation protocols. Footbaths and hand sanitizers should be placed at entry points, and farm workers should wear appropriate protective clothing.

Establishing a poultry farm in India requires careful planning and consideration of infrastructure requirements such as land, sheds, equipment, water, and electricity supply, and biosecurity measures.

Production process and operational plan: The production process and operational plan for a poultry farm in India will depend on the type of farming system being used, the scale of production, and the specific requirements of the birds. Here are some general steps in the production process and operational plan.

• Procuring birds: The birds should be procured from a reliable and reputable source, preferably from a certified hatchery. The birds should be of good quality, free from any diseases, and have the required vaccinations.
• Housing and management: The birds should be housed in well-designed sheds with proper ventilation, temperature control, and lighting systems. The sheds should be regularly cleaned and disinfected to maintain a healthy environment for the birds. Adequate feed and water should be provided to the birds, and their health should be monitored regularly.
• Feed management: Proper feed management is essential for the growth and health of the birds. The feed should be of good quality and provide the required nutrients for the birds. The feed should be stored in a clean and dry place to prevent contamination.
• Disease management: Regular health checks should be conducted to detect any signs of disease or infection in the birds. Proper disease management protocols should be followed, including vaccination, medication, and quarantine measures.
• Egg management: In the case of layer farming, egg production should be monitored, and eggs should be collected and handled carefully to prevent damage and contamination. The eggs should be stored in a clean and cool place.
• Marketing and sales: The poultry products should be marketed and sold through various channels, including local markets, wholesale markets, and direct sales to consumers. A pricing strategy should be developed based on market demand and competition.

Supply chain management and distribution strategy: Supply chain management and distribution strategy are crucial components of a successful poultry farm business plan in India. Here are some considerations for managing the supply chain and distribution strategy.

• Procurement of inputs: The procurement of inputs such as feed, medicines, and equipment should be done from reliable and reputable suppliers. Quality should be the main consideration in selecting suppliers. The procurement process should be streamlined and efficient to ensure a steady supply of inputs.
• Transportation: Transportation is an important component of the supply chain as it affects the quality and freshness of the products. The birds should be transported in a hygienic and humane manner to minimize stress and prevent any damage to the birds. Eggs should be transported carefully to avoid breakage.
• Processing and packaging: If the farm is involved in processing and packaging, it should be done in a hygienic and efficient manner to maintain the quality of the products. The packaging should be attractive and informative to help market the products.
• Storage: Proper storage is important to maintain the quality and freshness of the products. The storage facilities should be clean, dry, and well-ventilated.
• Distribution strategy: The distribution strategy should be designed to reach the target customers efficiently and effectively. The target customers could be wholesalers, retailers, or direct consumers. The distribution channels could include local markets, wholesale markets, and online platforms. The pricing strategy should be developed based on the target customers and the competition.
• Logistics and supply chain management: The logistics and supply chain management should be streamlined and efficient to minimize costs and maximize profits. The inventory levels should be monitored regularly, and the supply chain should be optimized to ensure timely delivery of products.

Financial part in poultry farm business plan

Capital requirements (start-up costs, working capital, etc.) to start a poultry farm business: Starting a poultry farm in India requires significant capital investment. The capital requirements depend on the scale of production, type of poultry farm, and the infrastructure and equipment needed. Here are some capital requirements to consider in a poultry farm business plan.

• Land and infrastructure: The cost of acquiring land, building sheds, and other infrastructure such as feed storage, water supply, and electricity connections can be a significant portion of the start-up costs.
• Equipment and machinery: Poultry farming requires various equipment and machinery such as feeders, drinkers, incubators, brooders, ventilation systems, and generators. The cost of these items can also be a significant portion of the start-up costs.
• Working capital: Working capital is the amount of money required to cover the day-to-day expenses of the farm, such as purchasing feed, medicines, and other supplies, paying for labor, and other operating expenses.
• Legal and administrative costs: Starting a poultry farm requires various legal and administrative procedures such as registering the farm, obtaining licenses and permits, and complying with regulations. These costs should be included in the start-up costs.
• Marketing and sales expenses: The cost of marketing and sales, including branding, advertising, and promotional expenses, should also be included in the business plan.

Revenue streams and pricing strategy: Revenue streams and pricing strategy are important components of a poultry farm business plan in India. Here are some considerations for revenue streams and pricing strategy.

• Revenue streams: The main revenue streams for a poultry farm are the sale of eggs, live birds, and poultry meat. Some farms may also generate revenue from value-added products such as processed meat, chicken sausages, or chicken nuggets.
• Pricing strategy: The pricing strategy for poultry products depends on various factors such as the competition, target market, and the cost of production. The pricing should be competitive to attract customers while also ensuring profitability. The pricing should also consider the quality of the products, customer demand, and any unique features of the products.
• Product differentiation: Product differentiation can be a valuable strategy for pricing poultry products. Farms can differentiate their products based on factors such as breed, feed, and living conditions of the birds. Organic and free-range products can also command a premium price.
• Marketing strategy: The marketing strategy should be developed to reach the target customers and promote the unique features and benefits of the products. The marketing channels could include online platforms, local markets, or direct selling to consumers.
• Volume discounts: Farms can offer volume discounts to customers who purchase large quantities of products. This can encourage bulk purchases and build loyalty among customers.
• Promotions: Promotions such as discounts, buy-one-get-one-free offers, and loyalty programs can also be effective in attracting and retaining customers.

Cost structure and operating expenses: Cost structure and operating expenses are important components of a poultry farm business plan in India. Here are some key considerations for cost structure and operating expenses.

• Cost of production: The cost of production includes expenses related to feed, labor, veterinary care, equipment maintenance, utilities, and other supplies required for the operation of the farm. The cost of production can vary based on the scale of the operation, type of poultry, and the quality of inputs.
• Labor costs: Labor costs include salaries or wages paid to farm workers, supervisors, and managers. The labor costs can vary based on the scale of the operation, level of automation, and the skills and experience of the workers.
• Feed costs: Feed costs are a significant expense in poultry farming, as the quality and quantity of feed can directly impact the growth and health of the birds. The cost of feed can vary based on the type and quality of feed, as well as the availability and cost of raw materials.
• Veterinary expenses: Veterinary expenses include costs related to disease prevention, treatment, and management. The cost of veterinary care can vary based on the prevalence of diseases in the area, the vaccination and treatment schedule, and the quality of veterinary services.
• Marketing and advertising expenses: Marketing and advertising expenses include costs related to promoting the farm and its products through online and offline channels. The marketing and advertising expenses can vary based on the marketing strategy, target market, and the promotional channels used.
• Administrative and overhead expenses: Administrative and overhead expenses include costs related to office supplies, rent, utilities, insurance, and other general expenses required for the operation of the farm.

Profit and loss projections and cash flow analysis : These two are important components of a poultry farm business plan in India. Here are some key considerations for profit and loss projections and cash flow analysis.

• Revenue projections: Revenue projections should be based on realistic assumptions about the quantity and price of products sold. Revenue projections should consider the seasonality of demand, market trends, and competition.
• Cost projections: Cost projections should consider the cost of production, labor, veterinary care, feed, marketing and advertising expenses, and administrative and overhead expenses. Cost projections should be based on realistic assumptions and historical data where available.
• Gross profit margin: Gross profit margin is the difference between revenue and cost of goods sold. Gross profit margin should be sufficient to cover operating expenses and provide a profit for the farm.
• Operating expenses: Operating expenses should be carefully planned and monitored to ensure profitability. Operating expenses should be regularly reviewed and optimized to minimize waste and improve efficiency.
• Net income: Net income is the difference between revenue and total expenses. Net income should be positive to ensure the profitability of the farm.
• Cash flow analysis: Cash flow analysis is a critical component of a poultry farm business plan. Cash flow analysis should consider the timing of revenue and expenses, the availability of credit and financing, and the impact of seasonality on cash flow.
• Break-even analysis: Break-even analysis is a tool to determine the minimum level of sales required to cover all operating expenses. Break-even analysis should consider the cost structure, pricing strategy, and volume discounts.

Here are some banks in India that offer loans for poultry farm business

State Bank of India: The State Bank of India (SBI) offers a range of loan products for poultry farming, including loans for construction of poultry sheds, purchase of equipment, and working capital. You can find more information about SBI’s loan products for agriculture and allied activities on their website: https://sbi.co.in/web/agriculture-rural/agriculture-and-allied-activities

Punjab National Bank: Punjab National Bank (PNB) offers loans for poultry farming, including term loans for construction of poultry sheds and purchase of equipment, and working capital loans. You can find more information about PNB’s loan products for agriculture on their website: https://www.pnbindia.in/agricultural_loan.html

HDFC Bank: HDFC Bank offers loans for poultry farming business, including loans for construction of poultry sheds, purchase of equipment, and working capital. You can find more information about HDFC Bank’s loan products for agriculture and allied activities on their website: https://www.hdfcbank.com/personal/borrow/agricultural-loans

ICICI Bank: ICICI Bank offers loans for poultry farming business, including loans for construction of poultry sheds, purchase of equipment, and working capital. You can find more information about ICICI Bank’s loan products for agriculture and allied activities on their website: https://www.icicibank.com/business-banking/agri-business/agri-loans.page

Axis Bank: Axis Bank offers loans for poultry farming, including loans for construction of poultry sheds, purchase of equipment, and working capital. You can find more information about Axis Bank’s loan products for agriculture and allied activities on their website: https://www.axisbank.com/business-banking/loans/agri-and-allied

Please note that this list is not exhaustive and there may be other banks or financial institutions that offer loans for poultry farming in India. Additionally, the loan products, terms, and conditions may vary between different banks and financial institutions, so it is important to research and compare different options before selecting a lender.

Grants: Grants are funds that do not have to be repaid and are typically provided by government agencies or non-profit organizations. Grants are often available for specific purposes such as research and development, environmental conservation, or community development.

The Government of India provides various grants and subsidies for the development of the poultry industry in the country. Some of the major schemes that you can check for your poultry farm business are.

National Livestock Mission: The National Livestock Mission (NLM) is a centrally sponsored scheme that provides financial assistance for various livestock-related activities, including poultry farming. The scheme aims to promote sustainable development of the livestock sector, and provides subsidies for the construction of poultry sheds, purchase of equipment, and other related activities. You can find more information about the NLM scheme on the Ministry of Agriculture and Farmers Welfare website: http://nlc.gov.in/nlm

Rashtriya Krishi Vikas Yojana: The Rashtriya Krishi Vikas Yojana (RKVY) is a centrally sponsored scheme that provides financial assistance for the development of agriculture and allied sectors, including poultry farming. The scheme provides subsidies for the construction of poultry sheds, purchase of equipment, and other related activities. You can find more information about the RKVY scheme on the Ministry of Agriculture and Farmers Welfare website: https://rkvy.nic.in/

Pradhan Mantri Fasal Bima Yojana: The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme that provides financial assistance to farmers in case of crop failure due to natural calamities, pests, or diseases. The scheme covers various crops, including poultry, and provides insurance coverage for the loss of birds due to specified perils. You can find more information about the PMFBY scheme on the Ministry of Agriculture and Farmers Welfare website: http://agricoop.gov.in/schemes/Pradhan-Mantri-Fasal-Bima-Yojana

Credit Guarantee Fund Trust for Micro and Small Enterprises: The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a government-backed scheme that provides collateral-free credit to micro and small enterprises, including poultry farmers. The scheme provides a credit guarantee cover of up to 75% of the loan amount, and helps small entrepreneurs to access credit from banks and financial institutions. You can find more information about the CGTMSE scheme on their website: https://cgtmse.in/

Please note that the eligibility criteria, application process, and other details may vary for each of these schemes, and it is advisable to check the respective websites for the latest information.

Marketing, Branding part in  poultry farm business plan

Branding and positioning strategy for a poultry farm business.

Branding and positioning strategy are crucial for the success of any business, including a poultry farm. Here are some tips for developing a strong brand and positioning strategy.

• Define your unique selling proposition (USP): Identify what makes your poultry farm unique and different from your competitors. This could be your farming practices, the quality of your poultry products, or your customer service.
• Develop a brand identity: Create a brand name, logo, and tagline that reflect your unique selling proposition and appeal to your target market. Ensure that your branding is consistent across all communication channels, including your website, social media, and packaging.
• Establish a strong online presence: In today’s digital age, having a strong online presence is crucial for any business. Create a website for your poultry farm, and maintain active profiles on social media platforms such as Facebook and Instagram. This will help you to reach a wider audience and build a loyal customer base.
• Partner with other businesses: Partnering with other businesses in the food and agriculture industry can help you to increase your reach and credibility. Consider partnering with local restaurants, grocery stores, and farmers’ markets to sell your poultry products.
• Focus on quality and customer service: Your reputation as a poultry farmer will depend on the quality of your products and the level of customer service you provide. Ensure that your products are of the highest quality, and provide excellent customer service to build trust and loyalty among your customers.

By developing a strong brand and positioning strategy, you can differentiate your poultry farm from your competitors, attract more customers, and build a successful business.

Note: While developing a branding and positioning strategy for your poultry farm, it is important to ensure that you are making informed decisions that align with your business goals and target market. Seeking the advice of an experienced consultant can help you to develop a strong strategy that sets your business apart from the competition.

There are several consultancy firms in India that specialize in agri marketing consultancy and can provide valuable guidance on branding and positioning strategy. Some of the firms that you may consider reaching out to include:

• Agriwatch: A market research and consulting firm that provides a range of services for the agriculture industry, including branding and marketing strategy. https://www.agriwatch.com/
• Yes Bank: A private sector bank that offers consultancy services for agribusinesses, including marketing strategy and brand development. https://www.yesbank.in/business-banking/agriculture-and-allied-sectors
• Mahindra Agribusiness: A subsidiary of Mahindra Group that provides end-to-end solutions for the agriculture industry, including branding and marketing consultancy.   https://www.mahindra.com/business/agribusiness
• Technopak: A management consulting firm that provides services for a range of industries, including agriculture and food processing. They offer expertise in branding, market research, and consumer insights. https://technopak.com/industries/agribusiness/

It is important to do your research and select a consultancy firm that has experience working with agribusinesses and a track record of success in developing branding and positioning strategies. With the right guidance, you can develop a strong brand that resonates with your target market and helps you to achieve your business objectives.

Promotion and advertising channels for a poultry farm business.

When it comes to promoting and advertising your poultry farm, there are a number of channels that you can use to reach your target audience. Here are some effective options to consider.

• Social media: Platforms like Facebook, Instagram, and Twitter can be great for building a following and sharing updates about your farm. You can also use social media advertising to target specific demographics and interests.
• Local newspapers and magazines: Advertising in local publications can be an effective way to reach potential customers in your area.
• Trade shows and exhibitions: Participating in relevant trade shows and exhibitions can help you to network with potential customers and partners, as well as showcase your products and services.
• Word of mouth: Satisfied customers can be some of your best promoters, so encourage them to spread the word about your business.
• Farm visits and tours: Inviting customers and stakeholders to visit your farm and see your operations firsthand can be a powerful way to build relationships and generate interest in your products.
• Online directories and listings: Listing your business in online directories and local business listings can make it easier for potential customers to find you when searching online.

It’s important to choose the promotion and advertising channels that make the most sense for your target audience and budget. A combination of these options may be most effective, so consider testing different approaches to see what works best for your business.

Sales strategy and customer acquisition plan

Developing a strong sales strategy and customer acquisition plan is critical to the success of your poultry farm business. Here are some key steps to consider.

• Identify your target customers: Determine the specific market segments you want to reach, such as restaurants, supermarkets, or individual consumers.
• Build relationships with customers: Reach out to potential customers and build relationships with them. Offer product samples, provide information on your farm and production processes, and showcase your unique selling proposition.
• Set pricing and promotions: Determine pricing that is competitive and fair, and consider offering promotions to attract new customers.
• Develop a distribution network: Decide on the most effective way to distribute your products to your target customers, such as working with local distributors, hiring a sales team, or leveraging online marketplaces.
• Leverage technology: Consider leveraging technology to streamline your sales process, such as using online ordering platforms, point-of-sale systems, or customer relationship management (CRM) software.
• Monitor and adjust your strategy: Continuously monitor your sales and customer acquisition efforts, and adjust your strategy as needed based on customer feedback, market trends, and other factors.

By taking a thoughtful and strategic approach to sales and customer acquisition, you can build a strong customer base and grow your poultry farm business over time.

Customer retention and loyalty programs

Customer retention is just as important as customer acquisition, and implementing a loyalty program can help you retain existing customers and encourage repeat business. Here are some tips for creating an effective customer retention and loyalty program.

• Offer rewards: Reward loyal customers with incentives such as discounts, free products, or exclusive access to new products or promotions.
• Personalize the experience: Tailor your program to the interests and preferences of your customers, such as offering discounts on their favorite products or personalized recommendations.
• Make it easy to participate: Ensure that your loyalty program is user-friendly and easy to join, with clear instructions and benefits.
• Communicate regularly: Keep your customers informed about program updates, new products, and exclusive promotions through regular email newsletters, social media updates, or text messages.
• Solicit feedback: Ask your customers for feedback on your program and use their input to make improvements and changes.
• Monitor and analyze results: Regularly monitor the effectiveness of your program by tracking customer retention rates, sales volume, and customer feedback.

By implementing a customer retention and loyalty program, you can build strong relationships with your customers and encourage them to continue doing business with you over the long term.

Prepare a poultry firm business Plan that covers potential risk and challanges

Identification of potential risks and challenges

As with any business, there are risks and challenges associated with operating a poultry farm. Here are some potential risks and challenges to consider.

• Disease outbreaks: Poultry farms are susceptible to outbreaks of diseases such as avian influenza, which can result in significant financial losses and business disruption.
• Fluctuations in feed prices: The cost of poultry feed can be a significant expense for poultry farms, and fluctuations in feed prices can impact profitability.
• Regulatory compliance: Poultry farms must comply with a range of regulatory requirements, such as food safety and environmental regulations, which can be complex and time-consuming.
• Market volatility: The poultry industry is subject to market fluctuations, which can impact demand and pricing for poultry products.
• Natural disasters: Natural disasters such as floods, storms, or wildfires can damage poultry farms and disrupt business operations.
• Labor shortages: The poultry industry relies heavily on manual labor, and shortages of skilled labor can impact productivity and profitability.

To mitigate these risks and challenges, it’s important to have a contingency plan in place, such as implementing disease prevention measures, maintaining adequate insurance coverage, and diversifying your revenue streams. Staying up to date on regulatory requirements and market trends, and investing in employee training and development can also help to minimize risks and improve the long-term success of your poultry farm business.

Risk mitigation strategies and contingency plans

To mitigate the risks and challenges associated with operating a poultry farm, here are some strategies and contingency plans you can consider.

• Disease prevention measures: Implement biosecurity measures to prevent the spread of disease, such as regular disinfection, isolation of sick birds, and limiting farm access to authorized personnel only.
• Adequate insurance coverage: Ensure that your poultry farm has adequate insurance coverage, including property and liability insurance, to protect against potential losses due to natural disasters, disease outbreaks, or other unforeseen events.
• Diversification of revenue streams: Explore opportunities to diversify your revenue streams, such as offering value-added products like processed meats or eggs, or expanding into other areas of agribusiness.
• Market research and analysis: Stay up to date on market trends and consumer preferences through regular market research and analysis, and adjust your business strategy accordingly.
• Employee training and development: Invest in employee training and development to ensure that your workforce is skilled and knowledgeable, and can effectively manage risks and challenges as they arise.
• Emergency preparedness plan: Develop an emergency preparedness plan that outlines procedures for responding to natural disasters, disease outbreaks, or other emergencies, and ensure that all employees are trained on the plan.

By implementing these risk mitigation strategies and contingency plans, you can help to ensure the long-term success and sustainability of your poultry farm business.

Case study:  During the COVID-19 pandemic, many poultry farms faced significant challenges related to supply chain disruptions, reduced demand, and labor shortages. However, those with strong risk mitigation strategies and contingency plans in place were better able to weather the storm.

For example, one poultry farm in India implemented a range of risk mitigation strategies and contingency plans to address the challenges posed by the pandemic. These included,

• Strict biosecurity measures to prevent the spread of COVID-19 among farm workers and birds.
• Diversification of revenue streams, including the introduction of value-added products like processed chicken and eggs, which helped to maintain sales even as demand for fresh poultry products declined.
• Close collaboration with suppliers and distributors to ensure a steady supply of feed, medicines, and other inputs, despite disruptions to transportation networks.
• Regular communication with employees, customers, and other stakeholders to keep them informed about changes in business operations and to build trust and loyalty.

As a result of these measures, the farm was able to maintain its production and sales levels throughout the pandemic, and even saw some growth in certain product lines. While the pandemic posed significant challenges, the farm’s strong risk mitigation strategies and contingency plans helped it to navigate the crisis and emerge stronger on the other side.

Always Consider Legal and regulatory compliance in your poultry farm business plan

Legal and regulatory compliance is critical for any business, including poultry farms, to operate legally and avoid legal or financial penalties. In India, poultry farms are subject to various regulations, including.

• Registration: Poultry farms are required to obtain necessary licenses and registrations from the local or state authorities before starting operations.
• Environmental regulations: Poultry farms must comply with various environmental regulations, including waste disposal and pollution control.
• Animal welfare regulations: Poultry farms must follow animal welfare guidelines and regulations to ensure the well-being of the birds.
• Labor laws: Poultry farms must comply with various labor laws, including minimum wage requirements, working hours, and health and safety regulations.
• Taxation: Poultry farms must comply with tax regulations, including income tax, sales tax, and other applicable taxes.

To ensure legal and regulatory compliance, poultry farms should consult with legal and regulatory experts and stay updated on any changes to the regulations. They should also maintain proper documentation and records to demonstrate compliance in case of any audits or inspections. By following these practices, poultry farms can avoid legal or financial penalties and maintain the trust and confidence of their stakeholders.

Your Poultry farm business Plan must have Insurance requirements and coverage options

Insurance is essential for any business, including poultry farms, to protect against unexpected events that can lead to financial losses. Poultry farms may face various risks, such as disease outbreak, natural disasters, and other hazards, which can result in damage or loss of birds, buildings, or equipment. To mitigate these risks, poultry farms can consider the following insurance coverage options.

• Property insurance: This coverage can protect against losses due to damage or destruction of buildings, equipment, and other property.
• Liability insurance: This coverage can protect against third-party claims of property damage or personal injury.
• Business interruption insurance: This coverage can provide financial support to poultry farms in case of temporary suspension of operations due to an unforeseen event.
• Livestock insurance: This coverage can protect against losses due to death, theft, or damage to birds.
• Workers’ compensation insurance: This coverage can provide financial support to employees in case of work-related injuries or illnesses.

To determine the appropriate insurance coverage, poultry farms should consult with insurance experts and assess their specific risks and needs. They should also review the policy terms and conditions carefully to ensure that they understand the coverage and exclusions. By having proper insurance coverage, poultry farms can protect their business and financial assets in case of unexpected events.

Recap of key points of Poultry farm business plan

Recap of the key points covered in this article about poultry farm business plan in India…

1. Overview of the Indian poultry industry, market size, and growth potential.

2. Importance of having a business plan for a poultry farm, which includes:

• Competitor analysis and market research
• Infrastructure requirements
• Production process and operational plan
• Supply chain management and distribution strategy
• Capital requirements and financing options
• Revenue streams and pricing strategy
• Cost structure and operating expenses
• Profit and loss projections and cash flow analysis

3. Branding and positioning strategy is critical, and it’s recommended to seek expert advice or hire a consultancy firm that deals with agri-marketing consultancy.

4. Promotion and advertising channels, sales strategy, and customer acquisition and retention plans.

5. Identification of potential risks and challenges, risk mitigation strategies, and contingency plans.

6. Legal and regulatory compliance, insurance requirements, and coverage options.

Overall, a well-crafted poultry farm business plan can help to succeed in a competitive market, maximize profits, and mitigate risks.

I know this poultry firm business plan article become long, hence suggesting keeping a PDF copy handy so that you can refer in future when feel required, please click the  poultry farm business plan free download section.

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10 Steps to Start Poultry Farming Business in India

Is poultry farming in india worth starting, how to start poultry farming in india, step 1: pick your poultry sector & type of bird, step 2: decide the location of your farm, step 3: decide on the appropriate form of business, step 4: decide the name, logo, and trademark for your company, step 5: define your target market, step 6: generate a business plan, step 7: capital allocation, step 8: market and advertising, step 9: fssai registration/license, step 10: source of funding, benefits of starting a poultry business in india.

• Lucrative Returns : The poultry industry in India is known for its high-profit margins, providing entrepreneurs with a lucrative avenue for wealth creation. With rising demand for poultry products both domestically and internationally, a well-managed poultry business can yield substantial financial rewards. 
• Scalability and Flexibility : Poultry farming allows for scalability, enabling entrepreneurs to start small and gradually expand their operations as per market demand and resources. Additionally, the business offers flexibility in terms of production cycles and diversification opportunities, allowing entrepreneurs to adapt to changing market dynamics effectively.
• Low Operational Costs : Compared to many other agricultural ventures, poultry farming requires relatively low operational costs. The initial investment in infrastructure and equipment is moderate, and ongoing expenses such as feed, medication, and labor are manageable, ensuring a favorable cost-to-profit ratio for poultry businesses. 
• Sustainable Income Source : Poultry farming provides a consistent and sustainable source of income throughout the year. Unlike seasonal crops or other agricultural activities, poultry production operates year-round, ensuring a steady cash flow for entrepreneurs, thereby mitigating the risks associated with seasonal fluctuations.
• Contribution to Food Security : As a vital component of the food supply chain, poultry farming plays a crucial role in ensuring food security and nutrition. By producing eggs and meat rich in essential nutrients, poultry businesses contribute to addressing malnutrition and meeting the dietary needs of a growing population, thereby serving a broader societal purpose.
• Govt. Support through Incentive Schemes & Subsidies: With an aim to support MSMEs, Government Schemes and Subsidies are also available to support poultry farming initiatives, offering financial assistance, tax incentives, getting poultry farm licence, technical support to the eligible applicants and also, easing the process of poultry farming.

Capital Required to Start a Poultry Farming Business in India

Following the outlined steps, including selecting the poultry sector and type of bird, deciding on the farm location, choosing the appropriate business entity, branding, and trademarking, defining the target market, generating a business plan, allocating capital, marketing, and advertising, obtaining FSSAI poultry farm licence/registration, and securing funding, aspiring poultry farmers can establish a thriving business with significant growth potential and societal impact. This guide would have provided comprehensive knowledge.

Q1: What are the initial costs involved in starting a poultry farming business?

Q2: what are the regulatory requirements for poultry farming ventures in india, q3: how do i select the right breed of birds for my poultry farming business, q4: how to start poultry farming in india, q5: how can i market and sell my poultry products effectively.

Marketing and selling poultry products effectively primarily involves identifying target markets, understanding customer preferences, building a strong brand identity, and implementing strategic marketing initiatives. Utilizing channels such as local markets, supermarkets, online platforms, and consumer direct sales can help reach a wider audience. 

Building relationships with distributors, retailers, and food service establishments, participating in trade shows and agricultural fairs, and leveraging digital marketing tools such as social media, websites, and online advertising can also enhance visibility and attract customers.

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Consult with an Expert

• Agriculture

Livestock Farming

Aquaculture

Poultry Farming

As a result, starting a chicken farm in India can be a lucrative business opportunity. Chicken farming requires careful management practices such as regular feeding schedules, disease prevention measures, monitoring growth rates, maintaining proper hygiene standards in housing areas, and implementing biosecurity protocols to prevent disease outbreaks among the flock.

Poultry farming has become a thriving industry in India, contributing significantly to the country’s economy. With an increasing demand for chicken meat and eggs, the poultry sector offers immense opportunities for entrepreneurs and farmers. The poultry industry in India is characterized by both small-scale backyard farms as well as large commercial operations. It employs millions of people across various stages of production, including breeding, hatching, rearing, and processing.

India ranks among the top egg-producing countries globally, with a vast network of hatcheries supplying farmers with high-quality baby chickens. The country also boasts advanced technology and infrastructure for efficient broiler production. Moreover, advancements in genetics have led to improved breeds of chickens that are disease-resistant and highly productive. These breeds yield better meat quality and ensure higher egg production rates.

It is crucial to the success of your poultry farming venture. Your chosen location can greatly impact your business’s profitability and sustainability. Consider the availability of land. A chicken farm requires ample space for housing, feed storage, and other facilities. Look for areas where land is affordable and easily accessible. Next, assess the climate conditions in different regions. Chickens thrive in moderate temperatures with adequate ventilation.

Avoid areas prone to extreme heat or cold, negatively affecting their health and productivity. Another important factor to consider is proximity to markets and suppliers. Choose a location that allows easy transportation of your products to customers while ensuring a reliable supply chain for sourcing feed and other essential materials. Additionally, check for any environmental restrictions or regulations specific to poultry farming in certain areas.

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To begin, you’ll need to obtain a registration certificate from the local authority or panchayat where your farm will be located. This certificate validates your business and allows you to operate legally. Next, you must apply for an NOC (No Objection Certificate) from the Pollution Control Board. This ensures that your farm meets environmental standards and does not pollute the surrounding areas.

Additionally, you’ll need to register under relevant acts such as the Prevention of Cruelty to Animals Act and various animal husbandry laws. These acts are in place to protect animal welfare and ensure ethical practices within the industry. It’s important to note that different states may have specific regulations, so it’s essential to research and understand these requirements based on your location.

It is a major decision that can greatly impact the success of your poultry business. With so many different breeds available, some factors such as egg production, meat quality, adaptability to local weather conditions, and disease resistance are important. One popular chicken breed for egg production is the White Leghorn. These chickens are known for their high egg-laying capacity and efficient feed conversion. They are small and require less space than other breeds, making them suitable for smaller-scale farms.

Rhode Island Reds or Plymouth Rocks could be good options if you’re looking for chickens with dual-purpose capabilities (both egg and meat production). These breeds are known for their hardiness and ability to withstand various climates. Broiler breeds like Cornish Cross or Cobb 500 are commonly chosen for those focusing on meat production. These birds grow quickly and have excellent feed conversion rates, resulting in larger-sized birds with tender meat.

It’s also important to consider the availability of these breeds in your area. Local indigenous breeds may be well-adapted to the local environment but may not offer as high productivity as commercial hybrid varieties. Choosing the right breed depends on your specific goals and available resources. Consulting with experienced farmers or poultry experts can provide valuable insights into which breed best suits your needs.

The infrastructure includes buildings, equipment, and facilities that are essential for the proper functioning of your farm. You need to plan and design the layout of your chicken farm. This involves determining the number of houses or sheds you will need based on the size of your flock. It’s important to consider factors like ventilation, lighting, temperature control, and biosecurity measures while designing these structures.

Next, you must ensure adequate space for each bird inside the housing units. Overcrowding can lead to stress and diseases among chickens, so providing sufficient space per bird is essential. Additionally, you’ll need to set up feeding and watering systems within each housing unit. These systems should ensure easy access for chickens while minimizing wastage and contamination.

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Proper waste management is also crucial in maintaining a healthy environment for your birds. You’ll need appropriate systems to handle manure disposal or recycling effectively. Investing in high-quality equipment such as feeders, drinkers, nest boxes, heating devices (if required), and lighting fixtures will significantly optimize your farm’s productivity.

How would you select good-quality baby chickens? Select a reputable chicken supplier who can provide healthy and disease-free birds. Look for suppliers with a good track record and positive reviews from other poultry farmers. Decide whether you want to start with day-old baby chickens or prefer incubating eggs yourself. If opting for day-old baby chickens, ensure they are vaccinated against common diseases such as Newcastle disease and Marek’s disease.

When selecting eggs for hatching, ensure they come from healthy parent stock with good genetic traits. It is recommended to source fertilized eggs from reliable breeders who maintain proper breeding records. Consider the breed that suits your farming goals and market demand. Popular chicken breeds in India include Rhode Island Red, Kadaknath, Vanaraja, and Aseel. Choose breeds known for their productivity, adaptability to local conditions, and resistance to diseases in your area.

A balanced feed diet that fulfills their nutritional requirements is essential for maximizing productivity and profitability in your poultry farm. Start by choosing the right feed formulation for chickens based on the age and purpose of your chickens. For example, starter feeds are designed for baby chickens, while grower or finisher feeds are suitable for older birds. These feeds should contain proteins, carbohydrates, fats, vitamins, minerals, and other essential nutrients.

Feeding schedules should be consistent to maintain regularity in their intake. Ensure that clean water is always available for your chickens, as it aids digestion and overall well-being. Supplementing their diet with additional protein sources, such as soybean meal, can enhance muscle development and egg production in layers. Additionally, calcium-rich supplements like oyster shells can promote strong eggshells in laying hens.

Monitor your chickens’ body condition score (BCS) regularly to assess if they are receiving adequate nutrition. Adjust feed quantities accordingly to prevent underfeeding or overfeeding, which can lead to growth issues or obesity-related problems. Regularly consult with veterinarians or poultry nutrition experts to stay updated on the research findings regarding optimal feeding practices. They can guide you on specific dietary needs during different stages of growth or address any nutritional deficiencies within your flock.

Proper disease prevention and control measures are essential to ensure your chickens remain healthy and productive. Regularly monitoring the health of your flock is important. Monitor for any signs of illness, such as decreased activity, loss of appetite, abnormal droppings, or respiratory issues.

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If you notice any abnormalities in chickens, consult a veterinarian immediately. What are the biosecurity rules for poultry farms? Maintaining strict biosecurity protocols is vital in preventing the introduction and spread of diseases within your farm. Limit access to outsiders, including vehicles and equipment from other farms. Disinfect all equipment entering or leaving the farm premises.

Vaccinations significantly prevent common poultry diseases such as Newcastle disease, Marek’s disease, and infectious bronchitis. Consult a veterinarian to develop an appropriate vaccination schedule for your flock based on their age and specific requirements. Regularly clean and disinfect housing areas, waterers, feeders, equipment, and tools used on the farm.

Poultry waste refers to the manure, feathers, bedding material, and other byproducts generated from raising chickens. Proper waste management is essential to minimize environmental pollution and ensure compliance with government regulations. In India, there are specific guidelines set by regulatory authorities that farmers must follow regarding poultry waste management.

These guidelines aim to protect the environment, public health, and animal welfare. They include proper storage, handling, transportation, treatment, and disposal of poultry waste. One important aspect of poultry waste management is maintaining clean and hygienic conditions within the farm premises. Regular cleaning of chicken houses and removal of accumulated waste should be done to prevent diseases and maintain a healthy flock.

Farmers must also implement proper methods for treating or utilizing poultry waste. This can include composting or using it as fertilizer after appropriate processing. It’s important to adhere to any local or state regulations related to these practices. Furthermore, chicken farmers in India need to stay updated on any changes in legislation or new requirements regarding poultry waste management.

For those planning to start a small-scale poultry farm in India, an investment ranging from INR 50,000 to INR 1,50,000 would be necessary. This includes expenses for building infrastructure, purchasing equipment, and supplies, and acquiring the initial flock. If you aspire to a medium-scale poultry business, you may need to budget around INR 1.5 lakh to INR 3.5 lakhs. This increased investment accounts for larger housing facilities and equipment requirements.

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How much does it cost to start a poultry farm in India? For those aiming for a large-scale poultry farm with higher production capacity, investing between INR 7 Lakhs to INR 10 lakhs is recommended. Such investments are necessary due to the substantial costs of constructing larger infrastructure and procuring advanced machinery.

Starting a poultry farming business in India requires careful financial planning but offers potential returns on investment. With an initial capital ranging from Rs 2-3 lakhs and starting layer farming at a smaller level with around 1500 chickens, it could potentially yield monthly earnings between Rs 50,000 -1 lakh.

To begin with, it’s important to analyze the consumption patterns of chicken products in different regions of India. This will give you insights into areas with a higher demand for poultry products and where there might be untapped markets. Conducting surveys with potential customers such as restaurants, hotels, supermarkets, and individual consumers can provide valuable information about their preferences and requirements when purchasing chicken products. 

Market research also involves studying the competition – other poultry farms or suppliers already operating in your target market. Furthermore, keeping track of industry reports and news updates on factors like government policies related to poultry farming or changes in consumer behavior will help you stay ahead of any shifts in the market dynamics.

When choosing suppliers, look for ones that offer high-quality feed, medication, and other necessary inputs for poultry farming. Building good relationships with reliable suppliers will ensure a steady supply of essential resources for your farm. Similarly, collaborating with distributors with a wide reach and experience in the poultry industry can help you expand your market presence.

Distributors are vital in getting your products to different retail outlets across India. Retailers are the final link between you as a farmer and consumers. Partnering with reputable retailers prioritizing quality and customer satisfaction will enhance your brand reputation and increase consumer trust in your chicken products.

To establish these partnerships effectively, attend industry trade shows where you can network with potential partners. Build relationships based on mutual trust, transparency, and shared goals. Regular communication is key to maintaining strong partnerships. Stay informed about market trends, changes in demand patterns, or any challenges faced by your partners so that you can provide support when needed.

By keeping up with advancements in poultry farming practices, you can improve your farm operations’ efficiency, enhance your flock’s health and productivity, reduce costs, and maximize profits. Whether adopting new feeding techniques or implementing innovative biosecurity measures, staying updated will give you an edge over competitors.

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One way to stay informed is by attending workshops, seminars, or conferences related to poultry farming. These events provide opportunities for networking with industry experts while gaining valuable insights into emerging trends and technologies. These events provide opportunities for networking with industry experts while gaining valuable insights into emerging trends and technologies. Is chicken farming profitable in India?

With subsidies, you can start a profitable poultry farming business in India. Additionally, subscribing to credible agricultural magazines or joining online forums dedicated to poultry farming can keep you abreast of the latest news and discussions within the industry. Engaging with other farmers through these platforms allows for knowledge-sharing experiences that can help overcome challenges fellow chicken farmers face.

Farmers breed and raise chickens in controlled environments called chicken farms or poultry houses in chicken farming. These facilities are designed to provide optimal living conditions for the birds while ensuring their health and well-being. The primary purpose of chicken farming is to produce eggs or meat (broilers) commercially. Layer farms mainly focus on egg production, while broiler farms primarily rear chickens specifically bred for meat consumption.

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How To Start A Poultry Farm Business In India ?

Posted on 02 September 2024

Key Highlights

• Poultry farming offers steady income and low initial investment.
• Finalise your sector and choose the right birds.
• Focus on location, funding, and marketing.
• Essential equipment and machinery ensure efficiency.
• Consider a business loan to meet financial needs.

Why to Start a Poultry Farm Business?

A quick walkthrough.

• Income Generation: Financial stability and growth with a solid business plan.
• Employment: Creates jobs, supports local economies, reduces rural unemployment.
• Low Capital: Requires low initial investment.
• Year-Round Income: Continuous production of eggs and meat.
• Water Efficient: Uses less water than other livestock farming.
• Nutritional Products: High in protein, vitamins, and minerals; constant demand.
• Quick Turnaround: Broilers ready in 6-7 weeks, multiple cycles annually.
• Diversified Income: Produces both eggs and meat, reducing market risks.

Poultry Farm Investment Requirements

How to start poultry farming in india.

• Sector: Choose between chicken breeding, broilers, layers, feed production, or egg and meat processing.
• Birds: Select broilers for meat or layers for eggs.
• Location: Pick a site near markets with reliable water, feed, and transport links.
• Registration: Register your business and obtain permits and licences.
• Funding: Secure funds for equipment, materials, salaries, and costs; consider loans.
• Marketing: Identify your market, use online and offline ads, and develop sales strategies.
• Target Market: Connect with wholesalers, retailers, and local vendors.

Essential Equipment for Your Poultry Farming Business

• Automatic Feeder
• Automatic VaccinatorBell-Type Automatic Waterer
• Brooder and Chick Guard
• Charcoal and Kerosene Stove
• Circular Feeder
• Compressed Air System
• Electrical Heaters
• Emergency Standby Electric Plants
• Fowlpox Vaccinator/Lancet
• Gas and Electrical Brooders
• Hatchery Automation Equipment
• Hatching Egg Transfer Machines
• Hatching Egg Trays
• Infra-Red Bulbs
• Linear Feeder
• Linear Waterer
• Nipple and Manual Drinker
• Pan and Jar Type Waterers
• Reflectors/Hovers
• Shell Grit Box
• Syringes/Vaccine Droppers
• Water Basin with Grill
• Water Heaters
• Water Softeners and Filters

How to Apply for a Business Loan for Your Poultry Farming Business?

• Check Eligibility: Meet the bank's criteria for credit score and turnover.
• Compare Loans: Evaluate rates, tenures, and terms.
• Apply: Complete the loan application.
• Submit Documents: Provide ID proof, business registration, financial statements, and a business plan.
• Processing: Bank reviews your application.
• Disbursement: Approved loans are disbursed as per the bank's timeframe.

Business Loan Interest Rates Comparison from Top Banks/NBFCs for Hen Farm Business

Documents required for starting your chicken farm business.

• Application Form: Complete accurately and attach passport-sized photos.
• Identity Proof: Provide PAN and Aadhaar cards.
• Incorporation Certificate: Submit if your farm is a registered company.
• Land Documents: Prove ownership or lease of the farm land.
• Licenses and Permits: Furnish necessary state-required licenses and permits.
• Bank Statements: Provide statements for the last 12 months.
• Animal Care Standards: Ensure compliance with required standards.
• Additional Documents: Be prepared to provide any other documents that the lender or bank may require for the loan application process.

What it all boils down to?

Faqs – frequently asked questions, how much capital is needed to start a poultry farm business , what types of birds should i raise for a poultry farm business , what are the benefits of starting a poultry farming business , how do i choose a location for my poultry farm business , what equipment is needed for a chicken farm business , can i get a loan to fund my chicken farming business plan , how do i market my poultry products , what permits do i need to start a hen farm business .

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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Financial Solutions

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Poultry Farming in India [How To Start]

Poultry farm business plan.

Poultry farming is an activity that involves nurturing several categories of domestic birds for producing food such as eggs and meat. Poultry farming in India is the fastest developing area under agriculture and farming business. There are 3 million farmers practising poultry farming. What initially used to be limited to backyard farming has presently transformed and expanded into a techno-commercial industry.

Cost of Starting a Poultry Farm Business

The cost one is expected to incur when initiating a poultry business mainly depends on its scale. In India, the approximate cost involved is as follows –

• Small scale poultry farm – INR 50,000 to 1,50,000
• Medium-scale poultry farm – INR 1,50,000 to 3,50,000
• Large scale poultry farm – INR 7,00,000 to 10,00,000

For financial aid, one can apply for a business loan with a bank. Even though the option of borrowing the funds from friends or relatives is available or apply for Government schemes, a loan from the bank would provide tax rebates on the loan amount, therefore making it the most suitable option.

Step-by-Step procedure to Start a Poultry Farm

Step 1: creating a business plan.

A business plan is a roadmap that includes the specifics of how to achieve business goals. The business plan for poultry farming would ideally possess the following –

1. Finding a suitable location to start the poultry farm.

2. List of required equipment.

3. Deciding the variety of birds on the farm.

4. Details of processes such as egg production, broiler breeding, etc.

5. Specifics relating to various resources such as human resources, financial resources, etc.

6. Plans for marketing and advertising strategies.

7. Information on legal clearances required, such as licenses and permissions.

Step 2: Selection of Location and Procuring Required Equipment

One of the most crucial steps is to find the appropriate land for the business. This step is the costliest while setting up the business. The size of the land may vary depending on the type and scale of the business. Primarily, there are four types of poultry farms, they are –

1. Free Range Poultry Farm – Approximately 12,000 to 36,000 sq. ft. is required as birds will be allowed to move around freely.

2. Semi Range Poultry Farm – Approximately 8000 sq. ft. is required for this farm type.

3. Battery Cage Poultry Farm – Approximately 6,000 sq. ft. is required for the birds and infrastructure. In this type of farm, the birds will not be let loose to move around.

4. Completely Wild Poultry Farm – This type of farm is similar to the birds’ natural habitat with plenty of trees. Approximately 44,000 sq. ft. will be required for the same.

Other factors to consider when selecting the location would be to find an area away from the city, preferably safe, calm, and pollution-free, with easily accessible amenities such as fresh water and a market to buy commodities. However, it is always advisable to start the poultry farm on one’s land when commercialising poultry production.

Additionally, understanding what equipment is required for the business’s functioning and procuring them is essential at the preliminary stage. But first, it is necessary to decide which system to follow. According to India’s conditions, 3 systems are suitable: intensive system, semi-intensive system, and extensive system.

Step 3:  Deciding the Variation of Bird used in Poultry Farming

India is home to one of the biggest markets for poultry around the world. Despite the presence of a variety of birds such as chicken, geese, turkey, ducks, guinea fowl, quail, and many more, the poultry farms majorly raise chickens. There exist over 600 variations of chicken across the world, and 92 are grown in India to produce meat and eggs. The 3 most common categories of chicken in India are the following -

• Broiler chickens – They possess a high growth rate and can reach their fully grown stage in 8 weeks. Broiler chickens also have a high quantity of meat.
• Layer chickens –These birds are a unique breed under hens. They begin laying from 18 to 19 weeks and can continue to do so until 72 to 78 weeks. Layer chickens can produce above 250 eggs per year, and they consume approximately 2.25 kg of feed.
• Rooster chickens –These birds, also known as a cock, is the male gallinaceous bird. When they are young, they are called a cockerel, and they are called a rooster when they become an adult. They take time to grow but can guard the hens laying eggs due to their territorial instincts. Roosters are capable of quickly adapting to changing environments, and therefore they can be conveniently transported.

Step 4: Taking measures for the care and management of Poultry Farm

It is imperative to keep precautionary measures to ensure the birds’ health and safety, which will help in their proper nurturing and growth. There are some threats when running a poultry farm, but the main one remains poultry diseases. Providing clean water, nutritious food, and regular vaccinations to the poultry is essential. Taking adequate measures and having consistent regulation will ensure one does not face huge losses due to the diseases and other potential risks.

Step 5: Getting the required Licenses/Permissions for starting a Poultry Farm

The legal aspects concerning a poultry farm in India were initially not easy to get around. However, considering the increasing demand for poultry products, India’s Government is taking steps to support and promote the poultry farm business. Wherefore, with the right legal assistance, one can start and maintain a poultry farm in India without much maintenance after getting the required permissions and licenses.

The licenses required to be procured by the owner of the poultry farm before starting the business in India are as follows -

• No Objection Certificate (NOC) from the local village Panchayat.
• No Objection Certificate (NOC) from the Pollution Board.
• Permission for the use of electricity. One will be required to use an electrical transformer depending on the size of the poultry farm.
• License from the Groundwater Department.

Step 6: Conducting effective marketing and advertising

After deciding the name and a unique logo for the business, marketing poultry products in India is easy because of high demand. One can sell the products in the nearest markets and further even transport them to nearby cities, depending on the production scale.

Profit from Poultry Farm Business

Poultry Farming is a profitable business in India. The average time period to reach the Breakeven Point is estimated to be just 6 months. The size of the business plays a key role in earning profit. However, it is observed that a decent profit is made even from a small scale poultry farm. Additionally, beyond limiting sale to just eggs and meat, one may choose to sell feathers and by-products such as manure to gain added profits.

It is always advisable that if you are planning to start your own poultry farm business, before you begin, visit a running farm to attain a practical awareness about the functioning of a poultry farm.

What are the Benefits of Poultry Farming?

• The consumers are getting highly conscious of healthy eating so this has helped the poultry farming a lot. Consumers prefer poultry products as they are high in nutrition. Moreover, no religious taboos are revolving around poultry products.
• Poultry farming at a commercial level is a profitable business and a field with ample opportunities for budding Entrepreneurs. Banks across the country provide loans to aid business initiation.
• In India, a poultry farming business can be initiated with smaller capital, unlike other businesses. Further, it can function with minimal utility availability such as water, electricity, and light. Therefore, there is scope for exponential expansion that can be easily executed in the future.
• It would increase job opportunities drastically, and there are institutes and training centers available from where one can learn professionally about poultry farming. Some being –
• Dr. B.V. Rao Institute of Poultry Management & Technology, Pune
• Central Avian Research Institute, Izatnagar
• Indira Gandhi National Open University, Delhi
• National School of Open Schooling, Delhi

Impact of Poultry Farm Business on the Indian Economy

In India, the poultry industry has been growing at a high rate and is still expected to hike over the next decade. Presently, India is in the seventeenth position globally in the world population production index. Reports state that India’s poultry industry contributes approximately 16,799,613,124 Indian rupees towards the gross national product, and it is noticed that it is on a steady rise by the year. Furthermore, India stands as the 5th biggest eggs producer and 9th biggest poultry meat producer.

According to the market research conducted on the poultry business in India, reports state that the rate at which eggs are consumed has risen at a much-accelerated speed, in comparison to the poultry meat consumption. Additionally, the purchasing power capacity among consumers is continuously growing, and therefore, the rate of consumption is expected to increase thrice as much by the beginning of 2021.

It can be safely stated that the poultry business in India has an enormous positive impact on the economy and is expected to improve with time.

Key Takeaways

• It is not just about thinking about how to start a poultry farm in India or reading about a poultry farm business in general, you need to be precise on planning.
• Before you invest or take a loan or just google basic tips on how to start a poultry farm , you should weigh in the pros and cons for the same.
• The poultry farm business is profitable only if all the above steps are followed and mandatory requirements are met.
• Let us also have a look at some of the frequently asked questions on how to start poultry farming in India ?

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FAQs on Poultry Farming Business

Q. what is poultry farming and how to start a successful poultry farming business in india.

Ans- Raising birds for selling their eggs and meat for profit is known as poultry farming. These are some of the basic things r equired for starting a poultry farm:

• Location of your business space or land where you plan to build your farm.
• Equipment details that'll be used on your farm.
• Type of bird you'll be using for your business like- chicken, turkey, quail, emu, duck, etc.
• Egg-production process details.
• Broiler breeding process details.
• Human Resources information.
• Cost analysis and other financial details.
• Funding details
• Official permits and government based licenses
• Advertisement methods and marketing strategies

Q. How much does it cost to start a poultry farm in India?

Ans- The general amount of funds required in starting a poultry business in India is approximately around 50,000 to 2 Lakh rupees.

Q. Is poultry farm profitable in India?

Ans- The Poultry farm business is one of the highest growing and booming businesses in India. Given the current market scenario, it is for sure the most profitable agri-business.

Q. How can I start a poultry farm?

Ans- These are some of the prime rules for starting your own poultry farm in India:

• Finalise your Sector for the poultry farm business.
• Creating your farm brand logo
• Selecting Farm location
• Choosing the type of bird
• Manage financial funding
• Word of Mouth marketing for your farm
• Take your business online with a website
• Hire professional staff for farming
• Build a solid marketing plan to market your audience.

Q. Which poultry is best in India?

Ans- These are some of the top chicken breeds in India for egg and meat:

Q. How to choose your poultry sector in India?

Ans- These are the important steps to follow while choosing your poultry sector in India:

• Poultry feed production
• Hatchery or Chicken Breeding
• Meat and egg processing
• Layers breeding (egg production)
• Broilers breeding (meat production)

Q. How much labour force is needed to start a poultry farming business?

Ans- The labour force needed is measured depending on the poultry farm’s size and scale and the count of birds being nurtured during a particular period. For example, to manage every 500 birds, 2 to 3 people may be required.

Q. Is any software available to help in managing a poultry farm?

Ans- The NAVFarm poultry farm software aids in managing the whole farm. It provides complete control over the business and enables the management of every aspect concerning the business. It includes feeding, hatching, breeding, delivery of products, and all other related activities that can be managed at ease.

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Poultry Farming in India: Business Plan For Beginners

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Before discussing commercial poultry farming in India, let me first explain what does poultry farming means. Generally, poultry farming means, raising various types of domestic birds for the purpose of producing foods like eggs and meat.

Nowadays, most of the people are using the poultry as the synonym of chickens. Because chickens are the widely raised poultry birds. Along with chickens ducks, geese, turkeys, guinea fowl, quails, peacock etc. are also popular domestic poultry birds. In India, various types of poultry birds are being raised from a long time ago.

The largest number of poultry population in India is found in Andhra Pradesh followed by Tamil Nadu, Maharashtra, West Bengal, Karnataka, Bihar, Orissa, Kerala, Assam, Uttar Pradesh and Punjab.

Some important urban areas like Mumbai, Pune, Nagpur, Kolkata, Delhi, Chandigarh, Bangalore, Chennai, Hyderabad, Shimla, Bhubaneswar, Ajmer etc. are raising poultry through a developed poultry farming systems.

West Bengal and some other regions like Assam, Tamil Nadu, Kerala, Andhra Pradesh, Bihar, Orissa etc. are the most suitable place for duck farming .

However, here we are describing the benefits of commercial poultry farming in India and the steps for starting this business.

Table of Contents

Benefits of Poultry Farming in India

There are many benefits of commercial poultry farming in India. The main benefits are listed below.

• Commercial poultry farming in India has created and still creating profitable business opportunity for the Entrepreneurs.
• Poultry farming business can provide a great employment source for the job seeking people.
• This is such a business in India that can never dry up.
• All types of poultry product has a great demand in the market inside India. And there are no religious taboo about consuming the poultry meat and eggs.
• Highly productive local and foreign breeds are available for commercial production.
• Required initial investment is not too high. You can start with small scale production and elaborate it gradually.
• Bank loans are available throughout the country.
• Numerous farms are available and you can easily learn about poultry farming from those established farmers.

How to Start Commercial Poultry Farming in India

Starting commercial poultry farming business in India is not too easy. You have to go through some step by step process.

To be successful in poultry farming in India, you have to go through the steps listed below.

Choosing Suitable Location

The main and most important thing for poultry farming in India is selecting a suitable land. And it is the most expensive part of this business. For setting up commercial poultry production, it would be better if you have the land of your own.

The area of the land depends on the number of birds you want to raise. Consider the following aspects while choosing land for commercial poultry farming business in India.

• Try to setup the farm in rural areas that is slightly far from the city. Because, land and labor are relatively cheaper in rural areas.
• Select a chaos and noise free calm and quiet place.
• The area of the land depends on the number of birds and farming system. Free range farming system requires more land than intensive system.
• The chosen area must have to have fresh and pollution free environment.
• Never setup the farm in rented land. Because, in rented land the land owner can force you to leave his land at anytime. So, it would be better if you are the owner of the land.
• While selecting land, ensure a great source of sufficient amount of fresh and clean water.
• The selected area must have to be free from all types of harmful animals and predators.
• Suitable transportation system is a must.
• Presence of a suitable market near the farm will be effective. You will be able to buy necessary commodities and sell your products easily in the market.

Farming System

For commercial poultry farming in India three systems are suitable according to the condition of India. And the suitable three systems are listed below.

• Intensive System,
• Semi-Intensive System and
• Extensive System.

Selecting Breeds

Selecting high quality productive breeds is very important for successful poultry farming in India. There are numerous local and foreign high quality poultry breeds available in India.

Choose proper breeds according to your desired production. If you want to start producing eggs commercially, select highly productive layer poultry breeds.

For commercial meat production business, go with highly meat productive broiler poultry breeds. Contact with your nearest expert poultry producer to learn more about highly productive breeds. Common and mostly raised poultry breeds in India are of three types.

• Broilers: The poultry breeds that is suitable for commercial meat production is known as broiler poultry . They are like meat producing machines. They consume foods and convert them to meat quickly. They grow fast and become suitable for slaughter purpose within very short time.
• Cockerels: Cockerels are other types of meat producing poultry breeds. They also used for commercial meat production like broilers. But their growing rate is slower than broilers. They become hardy and can adopt themselves with the environment easily than the broilers. Cockerel meat is also very popular and has a great demand in India.
• Layers: Various types of layer poultry are vary popular for commercial eggs production throughout the world. Some of them are very suitable for farming in India. Layers can be used for both commercial meat and egg production. There are some layer poultry breeds available which can lay up to 300 eggs per year.

Choose any of those breeds according to your desired production. While choosing breeds for commercial production, consider the availability of all types of necessary facilities. Visit your nearest local market and try to understand which product has a huge demand and price.

Housing/Cage

Making a suitable poultry housing is another important factor for commercial production. But it is not too expensive like buying land. There are numerous ways for making a good house for the poultry birds.

Always be sure that, the house or cage is sufficient and spacious enough to accommodate the birds with necessary space and facilities.

In free range farming system, ensure sufficient amount of space for running and moving. The design of the house depends on the breeds and production type. However, while making a poultry house, consider the followings.

• Make a proper ventilation system in the house. Because, good ventilation system ensures good health and proper growth of the birds. So, the house must have to be well ventilated.
• Ensure flow of sufficient amount of fresh air and light inside the house.
• Try to make south faced house. This will help to entrance sufficient amount of clean and fresh air.
• If you go for large scale commercial production and make numerous house, then the distance from one house to another house will be at least 40 feet.
• Always keep the house clean and fresh. And clean it perfectly before bringing the chicks into the farm.
• Prevent all types of harmful animals and predators.
• Make good facilities so that rain water and cold wind can’t enter inside the house.
• Try to build the house in a calm and quiet place.
• Make a suitable drainage system inside the house. It will help you to clean the house easily.
• Keep all equipment in proper distance inside the house. And always clean the house and equipment in a regular basis.

Visit the links below to learn more about poultry farming.

• Poultry housing
• Broiler poultry housing
• Layer poultry housing
• How to build a poultry house .

Feeding good quality and nutritious food keeps the poultry birds healthy and productive. So, good and high quality nutritious food is a must for commercial poultry production.

There are numerous poultry feed producing companies available in India. They produce feeds for all types of poultry birds. You can easily use those food for your birds.

If you want to prepare the feed at your home, then you must have to know the necessary nutrient elements in their food. And you also have to buy all those elements separately from the market and mix it in proper ratio.

Along with providing fresh and nutritious food, always try to serve them sufficient amount of fresh and clean water according to their daily demands.

• Poultry feed
• Broiler poultry feed
• Layer poultry feed

Care & Management

Always try to take good care of your birds. And good management ensure proper growth and production. The main threat of poultry farming in India is diseases. Thousands of farmer face huge loss due to various types of poultry diseases .

So, always take good care of your birds and provide them nutritious food and clean water. Never try to mix contaminated or polluted food with their regular food. Vaccinate them timely and make a storage of some common and necessary medicines.

The main benefits of poultry farming in India is easy marketing. You can easily sell your products in your nearest local market.

So, you don’t have to worry about marketing your products. If the local market located so far from your farm then transport the products very carefully.

If you are new in this business and want start poultry farming in India, then first of all try to visit some farms practically and start raising in small scale. After gaining sufficient knowledge about poultry raising go for large scale commercial production. Wish your success!

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