REASONS YOU SHOULD NOT OWN A POULTRY FARM IN NIGERIA
I will not advise any Nigerian to invest in poultry farming in Nigeria if the person is not willing to immediately start by also investing in its value chain. If you want to stop at just raising birds to sell, chances are over 90% that you wont be a profitable poultry farmer except BY DIVINE INTERVENTION FROM GOD ALMIGHTY.
EVEN THE HOLY BIBLE SAYS,”wisdom is profitable to direct”. So before you go into poultry farming please study. I have these reasons below why you should not start yet.
1. Too Much Competition-it is saturated
There are too many poultry farmers these days, people were sold with the idea of poultry farm being an ATM Machine and there have been a flood of poultry farmers in recent times. Because of this factor many poultry bird retailers have a wide choice of buying birds at prices cheaper than what you have pegged to sell yours.
Many poultry farmers for fear of having to keep their birds for longer periods and incur more costs due to high cost of feeding them are willing to sell them off at very little profits. So, how can you compete with fellow farmers willing to sell far below your selling price.
2. Over-run of costs
Because of the little marginal price and high number of competitors, when you sell some of your birds the profit you make wont be enough to offset extra costs you incur in feeding your birds for more days after they mature till you get new buyers to buy them all. You stand the risk of spending all your profits in feeding them.
3. Mortality
It is not very easy to get a 100% production rate for your birds, if you experience mortality will this same limited marginal profit offset cost of losing some of your birds, answer to this in most cases is a no!.
4. Over maturity before sales
If you have a frozen food store of your own you can raise your birds and sell them off in 6 weeks but if you are selling directly to buyers this is not possible, they will want to buy very mature and heavy kg bird at the least price possible, they then go to procees it at their stands, or barbeque stands or cold-room as it is popularly called in Nigeria and make so much profit.
The people who make profit from poultry farming, especially rearing for meat are those who own frozen food stores, those who own chicken barbeque stands at very strategic locations, those who have restaurants or eatries where there is high demand for chicken, and those who run other food businesses where there is high demand for chicken meat.
In summary, if you want to make profit from poultry farming for meat, own these first.
AMUTAH CHUKWUDI is a Business consultant and Advisor
Book a session for business idea development and generation with him.
Whatsapp, 08137701720