Poultry Farm Business Plan Template

Written by Dave Lavinsky
poultry farm business plan template
Table of Contents
Table of Contents

Poultry Farm Business Plan Template

If you want to start a Poultry Farm or expand your current Poultry Farm, you need a business plan.

The following Poultry Farm business plan template gives you the key elements to include in a winning Poultry Farm business plan.

You can download our poultry farm plan template (including a full, customizable financial model) to your computer here.

 

Sample Poultry Farm Business Plan Template

Below is a poultry farm business plan example with each of the key sections to help you write a poultry farm business plan for your own company.

I. Executive Summary

Business Overview

[Company Name] is a new poultry farm based in [location], providing chicken and turkey meat to individuals, retailers, wholesalers, restaurants etc. The Company raises its birds in a cage-free environment.

Products Served

[Company Name] will be involved in the commercial production of chickens and turkeys for meat. The Company will provide the following products to its clients:

  • Large broiler chickens
  • Small broiler chickens
  • Turkeys

Customer Focus

[Company Name] will primarily serve processors, grocery stores, and restaurants throughout the area. The target customer profile is as follows:

  • 50 processors
  • 120 grocery stores
  • 1,850 restaurants

Management Team

[Company Name] is led by [Founder’s name], who has been in the poultry farming industry for [x] years. [Founder’s name] graduated from the University of ABC, where he majored in agriculture. While he was in school, he worked for a small poultry farm nearby, where he was able to participate in all aspects of poultry farming. Upon graduation, he landed a job with one of the country’s largest poultry producers, where he worked his way up. This experience equipped him with in-depth knowledge of common practices in the poultry farming industry, from the mundane all the way up to operation management.

[Company name] will also employ an experienced sales executive to sell to wholesalers and retailers in the region. This will be a skilled salesperson trained in agricultural sales by [Founder’s Name].

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

  • There is a sustained high demand for poultry across the region, and the company has the support of the local government in the way of subsidies and tax breaks.
  • The Company’s location is within 100 miles of numerous potential customers and is centrally located near a transportation hub.
  • [Founder’s Name] has lived in [company location] all his life and has raised his family there. He is well-connected in the community, and has the support of its citizens.
  • The management team has a track record of success in the poultry farming business.

Financial Highlights

[Company Name] is currently seeking $250,000 to start the poultry farm. Specifically, these funds will be used as follows:

  • Land and Equipment: $200,000
  • Working capital: $50,000 to pay for salaries and input costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

 

II. Company Overview

Who is [Company Name]?

[Company Name] is a new poultry farm based in [location], providing chicken and turkey meat to individuals, retailers, wholesalers, restaurants etc. The Company raises its birds in a cage-free environment. [Company Name] is headed by [Founder’s Name], who has extensive experience in producing poultry.

Daily operations of [Company Name] will include raising and supplying chickens and turkey on a commercial level.

[Company Name]’s History

[Founder’s Name] has been in the poultry farming industry for [x] years. [Founder’s name] graduated from the University of ABC, where he majored in agriculture. During his studies, he worked for a small poultry farm nearby, where he was able to participate in all aspects of poultry farming. Upon graduation, he landed a job with one of the country’s largest poultry producers, where he worked his way up. This experience equipped him with in-depth knowledge of common practices in the poultry farming industry, from the mundane all the way up to operation management.

Upon securing the support of the local government and finding a sizable plot of land for the farm, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

[Founder’s Name] has entered into negotiations to purchase the property for the purpose of running a poultry farm.

Since incorporation, the company has achieved the following milestones:

  • Developed the company’s name, logo, and website
  • Determined the best breeds of chicken to meet production goals
  • Determined facility, equipment, and inventory requirements
  • Began recruiting key employees with experience in the poultry farming industry

[Company Name]’s Products

[Company Name] will provide customers with high-quality meat, including:

  • Large broiler chickens
  • Small broiler chickens
  • Turkeys

 

III. Industry Analysis

[Company Name] competes with other poultry farms in the US. The industry is mature, and is expected to remain relatively consistent. According to the US Department of Agriculture, the overall poultry farming industry is highly fragmented, with the majority of establishments consisting of small scale farms. The total poultry farm market is estimated to grow to $31 billion over the next five years. Nutrition and dieting are increasingly important factors affecting the industry, as US consumers shift toward healthier lifestyles and demand more nutritious foods.

This bodes well for [Company Name]; since there are no other poultry farms in the county, and can expect to have the advantage in the local grocery and restaurant market. There is plenty of room in the industry, provided the farm can maximize productivity while providing high standards in production practices.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will primarily serve meat processing operations throughout the region, as well as local grocery stores, and restaurants.

The precise demographics of the town in which the business resides is as follows:

SpringdaleWyndham
Total Population26,09710,725
Square Miles6.893.96
Population Density3,789.202,710.80
Population Male48.04%48.84%
Population Female51.96%51.16%
Target Population by Age Group
Age 18-243.68%3.52%
Age 25-345.22%4.50%
Age 35-4413.80%13.91%
Age 45-5418.09%18.22%
Target Population by Income
Income $50,000 to $74,99911.16%6.00%
Income $75,000 to $99,99910.91%4.41%
Income $100,000 to $124,9999.07%6.40%
Income $125,000 to $149,9999.95%8.02%
Income $150,000 to $199,99912.20%11.11%
Income $200,000 and Over32.48%54.99%

Customer Segmentation

The Company will primarily target the following customer segments:

  • Processors: Processors represent the largest proportion of industry sales. The emergence of large farming operations has increased processing capabilities, and consumer demand for ready-to-cook boneless chicken products has grown with the availability of such processing.
  • Restaurants: While this segment represents a relatively small (6%) proportion of industry revenue, poultry products remain one of the most common ingredients in restaurant meals.
  • Grocery stores: Demand from this segment has remained relatively steady, accounting for nearly 16% of sales.

 

V. Competitive Analysis

Direct & Indirect Competitors

Chicken Coups
Chicken Coups is the largest poultry farm in the US. Its operations span all phases of poultry production, from making its own feed to distribution. The company offers good quality poultry products and meat. It has also kept abreast of trends in automation, which helps in improving its operations. Moreover, it is also known for its capability of delivering large orders in a short time.

Chicken Specialists
Chicken Specialists has been operating since 1995 and is a well-known company that provides quality poultry products with affordable pricing. It targets chain restaurants and large grocers, and maintains a distribution network that can serve customers throughout the region. However, Chicken Specialists does not maintain a cage-free facility.

Poultry Farmers USA
Poultry Farmers USA has been in business for the past [xx] years and enjoys great success. It is one of the best-known poultry producers in the state. It is known for cage-free production, and caters to specialty grocers and upscale food service establishments. However, these products also come with a premium price tag.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Management: The Company’s management team has xx years of business experience that boosts credibility, and engenders trust in the quality and value of their products
  • Relationships: Having lived in the community for xx years, [Founder’s Name] knows all the local leaders, media, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
  • Quality products at affordable pricing: The Company will provide quality products and services at affordable pricing, as it has high-quality equipment and uses the latest techniques.
  • Location: [Company Name] will serve local merchants, as well as processors and merchants throughout the region.

 

VI. Marketing Plan

You can download our poultry farm plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the poultry farming business. Customers can expect high-quality products at competitive prices.
The [Company Name] brand will focus on the Company’s unique value proposition:

  • Efficient and effective network
  • Good quality products and services at affordable pricing
  • Convenient location
  • Providing excellent customer service

Promotions Strategy

[Company Name] expects its target market to be meat processors, restaurants, and grocers. The Company’s promotions strategy to reach the audience includes:

Advertisement
Advertisements in publications like circulars, magazines, etc., are an excellent way for farms to connect with their audience. The Company will advertise in trade magazines and publications circulated by the state university’s agricultural extension office. Obtaining relevant placements in these publications will help in increasing brand visibility.

Networking
Networking is one of the most effective methods for improving brand awareness in agribusiness. The Company will attend seminars, trade shows, conferences, and other gatherings of the agricultural community.

Local Directory Marketing
The Company shall announce details about its presence and services in local directories to keep readers informed about the company’s various products.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the products they are paying for. The customer can expect to receive exceptional products at a reasonable price.

 

VII. Operations Plan

Functional Roles

To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:

Production Functions

  • General farm hand / Animal care (feeding, cleaning enclosures, etc.)
  • Flock supervision
  • Animal transport
  • Operations Manager

Administrative and Service Functions

  • General & administrative functions including legal, marketing, bookkeeping, etc.
  • Hiring and training staff
  • Sourcing and storing feed, tools, and equipment
  • Maintenance personnel
  • Milestones

    [Company Name] expects to achieve the following milestones in the following [] months:

    DateMilestone
    [Date 1]Finalize lease agreement
    [Date 2]Design and build out [Company Name]
    [Date 3]Hire and train initial staff
    [Date 4]Kickoff of promotional campaign
    [Date 5]Launch [Company Name]
    [Date 6]Reach break-even

     

    VIII. Management Team

    Management Team Members

    [Company Name] is led by [Founder’s name], who has been in the poultry farming industry for [x] years. [Founder’s name] graduated from the University of ABC, where he majored in agriculture. During his studies, he worked for a small poultry farm nearby, where he was able to participate in all aspects of poultry farming. Upon graduation, he landed a job with one of the country’s largest poultry producers, where he worked his way up. This experience equipped him with in-depth knowledge of common practices in the poultry farming industry, from the mundane all the way up to operation management.

    Hiring Plan

    [Founder] will serve as the CEO. To launch the poultry farm, the company will need to hire the following personnel:

    • General Farm Manager
    • Bookkeeper
    • Sales and Marketing
    • Farm hands

     

    IX. Financial Plan

    Revenue and Cost Drivers

    [Company Name]’s revenues will come from the sale of the poultry it raises. The major costs for the company will be the cost of feed, facilities, and equipment. The staff will earn competitive wages, allowing [Company Name] to hire experienced workers. Moreover, climate control is also one of the notable cost drivers for [Company Name].

    Capital Requirements and Use of Funds

    [Company Name] is currently seeking $250,000 to start the poultry farm. Specifically, these funds will be used as follows:

    • Land and Equipment: $200,000
    • Working capital: $50,000 to pay for salaries and input costs until [Company Name] reaches break-even

     
    5 Year Annual Income Statement

    Year 1Year 2Year 3Year 4Year 5
    Revenues
    Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
    Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
    Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
    Expenses & Costs
    Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
    Lease$60,000 $61,500 $63,038 $64,613 $66,229
    Marketing$20,000 $25,000 $25,000 $25,000 $25,000
    Salaries$133,890 $204,030 $224,943 $236,190 $248,000
    Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
    Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
    EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
    Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
    EBIT($56,810)$105,925 $140,152 $184,317 $234,414
    Interest$23,621 $20,668 $17,716 $14,763 $11,810
    PRE-TAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
    Net Operating Loss($80,431)($80,431)$0$0$0
    Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
    NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
    Net Profit Margin (%)-15.00%13.00%16.30%19.40%

     
    5 Year Annual Balance Sheet

    Year 1Year 2Year 3Year 4Year 5
    ASSETS
    Cash$16,710 $90,188 $158,957 $258,570 $392,389
    Accounts receivable$0$0$0$0$0
    Inventory$21,000 $23,153 $25,526 $28,142 $31,027
    Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
    Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
    Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
    Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
    TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
    LIABILITIES & EQUITY
    Debt$317,971 $272,546 $227,122 $181,698 $136,273
    Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
    Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
    Share Capital$0$0$0$0$0
    Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
    Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
    TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

     
    5 Year Annual Cash Flow Statement

    Year 1Year 2Year 3Year 4Year 5
    CASH FLOW FROM OPERATIONS
    Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
    Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
    Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
    Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
    CASH FLOW FROM INVESTMENTS
    Investment($246,450)$0$0$0$0
    Net Cash Flow from Investments($246,450)$0$0$0$0
    CASH FLOW FROM FINANCING
    Cash from equity$0$0$0$0$0
    Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
    Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
    SUMMARY
    Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
    Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
    Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389

     

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