A Business Plan For Poultry Farm

A BUSINESS PLAN FOR POULTRY FARM
“BROILERS CONTRACT GROWING”
By:
ARJEL M. MEREGILDO
BSCE – 1B
2022
Being an entrepreneur has been a life-long dream for the
researchers and in order to start chasing this dream the
researchers must create a good business plan which led them to
the idea of this study.
Global production of broiler meat has been growing since the
1960s, faster than that of any other meat. In recent years, this
growth has occurred in developing countries. Broiler meat is
popular because it is cheaper, more versatile, and is perceived
to give more health benefits than red meat. In spite of these
advantages, the world broiler industry increasingly faces
pressure to improve its production methods, with consumers and
government citing health, environment, and animal welfare as the
areas for improvement.
The COVID-19 pandemic had two impacts on the poultry
industry. Illnesses forced some poultry processing plants to shut
down or slow production, but this effect was much smaller than
the impact from the shutdown of much of the food service sector.
Disruption in the food service sector (shutdowns of restaurants,
school lunch programs, and cafeterias) sharply reduced demand for
some poultry products while increased working from home and
consumption of food prepared at home increased demand for other
poultry products. This caused some plants to shut down or slow

production because they had few or no customers for their (food
service-oriented) products.
However, the demand outlook is positive for the Philippine
broiler industry because of the continuing growth in population
and household incomes in the country.
Poultry contract growing is a partnership between a farmer
who owns an existing poultry farm or wishes to invest in one and
a chicken production and processing company like Bounty. The
contract grower rears the chickens while the company provides the
inputs, harvests, and markets the birds.
Contract poultry farming refers to a farming arrangement
where farmers raise chickens under a contract for a poultry
processing companies. This is system of production has been used
since the 1930s and is now an industry standard in poultry
production throughout the world. The relationship is symbiotic
and generally works well for both the poultry farmers and the
companies offering the contract.
Contract poultry farming generally leads to a high level of
efficiency in the poultry production process and this in turn
leads to affordable pricing for consumers. In countries where
contract poultry farming is more established and has been around

for decades, there are farmers that have raised chickens under
the same contract for generations.
Objectives of the Study
The main objective of this study is to develop a business
proposal in starting Poultry Farm (Broilers Contract Growing) in Brgy.
Macatingog, Calbayog City, Samar.
Delimitations of the Study
This study is focused primarily on conducting a business
plan for Poultry Farm in terms of standardized and specified
research variables.
The respondents of this study are the farmers, owners of
existing poultries and some breeders. It is also restricted to
the use of surveys as data-gathering instruments and the
conduct of personal interviews for further data.
LEGAL FORM OF THE BUSINESS
Poultry Farm will be administered in a partnership
form. Setting up a partnership will not be expensive than a
corporation.
BUSINESS LOCATION
The safety and overall health of poultry operation
owners and workers are closely connected to comprehensive
farm enterprises well being. Without a stable foundation in
place for a newly built or purchased poultry farm, safety
and well-being on the barn.
BUSINESS MODEL
Poultry Farm is a collaboration between a company which
already owns or wants to buy a poultry farm and a chicken
production and processing company like Bounty Agro Venture. The
corporation provides the inputs, harvests, and markets the
chickens, while the contract grower rears them. THE BUSINESS
MODEL CANVAS
The Pros of Broiler Contract Growing
1. Reduced management responsibilities
2. Less risk for production
3. Less risk for loss of income
4. Relatively fixed income and some insulation from price
changes
5.Less operating capital necessary
The Cons of Broiler Contract Growing
1. Possibility of limited opportunity for growth
2. New building and expansion are dictated by integration

Plan.
3. High fixed investment
4. Pressume to keep up with technological changes in
management, housing and equipment
5. Possible lack of bargaining power
MARKET PLAN
In order to locate partners, Poultry Farm will use the
following strategies:
1. Agricultural and food-related expos, seminars, and
other trade shows.Attend
2. A. Profit Sharing
Poultry Farm will create a plan for employees to make
pre-tax contributions. Workers will undouble receive a
portion of the company’s revenues as a result of this.
B. Rebates
If the Bounty Agro Venture will pay full price for our
service we will return the 10% as rebate.

C. Incentives
Tycheros poultry farm will devise an effective
incentive payout scheme. We will compensate the
employees above and beyond the standard basic wage and
perks if they do successfully.
MARKETING AND SALES STRATEGY
A. Marketing Strategy
Within the orderly marketing system,the Tycheros Poultry
Farm will use grower levies and permit fees that will support
research,advetise and promote broiler products in our own
province for consumption.
Poultry Farm will choose to produce for the special market
which is the Bounty Agro Venture.that is why we will pay to get
special attention in order to reach them.
Poultry Farm will only have one market,which will be Bounty
Agro Ventures, and it will be the sole market for the farm.They
will be bound by the terms of their agreement.
Bounty Agro Ventures will compensate the Tycheros Poultry
Farm based on its performance against established standard/target
metrics such as feed Conversiion Ratio(FCR)Average Live
Weight(ALW)and Harvest Recovery(HR).

A sales forecast is an expression of expected sales revenue.
It will estimate how Tycheros Poultry Farm plan to sell within a
certain time period.
The sales generated by a Broilers Contract Growing business
depend on the size of the farm and the network of the business.
The forecast that were able to come up with for the first
three years of our business are listed below.
This forecast was made based on what is currently available
in the industry.

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A BUSINESS PLAN FOR POULTRY FARM

“BROILERS CONTRACT GROWING”

researchers and in order to start chasing this dream the

researchers must create a good business plan which led them to

the idea of this study.

Global production of broiler meat has been growing since the

growth has occurred in developing countries. Broiler meat is

popular because it is cheaper, more versatile, and is perceived

to give more health benefits than red meat. In spite of these

advantages, the world broiler industry increasingly faces

pressure to improve its production methods, with consumers and

government citing health, environment, and animal welfare as the

areas for improvement.

The COVID-19 pandemic had two impacts on the poultry

industry. Illnesses forced some poultry processing plants to shut

Disruption in the food service sector (shutdowns of restaurants,

school lunch programs, and cafeterias) sharply reduced demand for

some poultry products while increased working from home and

consumption of food prepared at home increased demand for other

poultry products. This caused some plants to shut down or slow

However, the demand outlook is positive for the Philippine

broiler industry because of the continuing growth in population

and household incomes in the country.

Poultry contract growing is a partnership between a farmer

who owns an existing poultry farm or wishes to invest in one and

a chicken production and processing company like Bounty. The

inputs, harvests, and markets the birds.

Contract poultry farming refers to a farming arrangement

where farmers raise chickens under a contract for a poultry

processing companies. This is system of production has been used

since the 1930s and is now an industry standard in poultry

production throughout the world. The relationship is symbiotic

companies offering the contract.

Contract poultry farming generally leads to a high level of

efficiency in the poultry production process and this in turn

leads to affordable pricing for consumers. In countries where

contract poultry farming is more established and has been around

the same contract for generations.

Objectives of the Study

The main objective of this study is to develop a business

proposal in starting Poultry Farm (Broilers Contract Growing) in Brgy.

Macatingog, Calbayog City, Samar.

Delimitations of the Study

This study is focused primarily on conducting a business

plan for Poultry Farm in terms of standardized and specified

The respondents of this study are the farmers, owners of

existing poultries and some breeders. It is also restricted to

the use of surveys as data-gathering instruments and the

conduct of personal interviews for further data.

LEGAL FORM OF THE BUSINESS

Poultry Farm will be administered in a partnership

form. Setting up a partnership will not be expensive than a

owners and workers are closely connected to comprehensive

farm enterprises well being. Without a stable foundation in

place for a newly built or purchased poultry farm, safety

and well-being on the barn.

Poultry Farm is a collaboration between a company which

already owns or wants to buy a poultry farm and a chicken