12 WAYS TO PROFIT FROM THE POULTRY VALUE CHAIN IN NIGERIA
12 ways to profit from the Poultry Value Chain in Nigeria
The poultry business especially the rearing of chickens for meat and eggs is one business that has mass appeal regardless of age, gender, ethnicity or religion in Nigeria today.
Poultry generally refers to birds which have been domesticated for the production of eggs and meat. The profit margin generated from this business is highly dependent on the lifecycle of the bird itself which is from hatching to maturity.
Many people have realized their fortunes from this business due to the fact that chickens and their products (eggs) are always in hot demand. The supply of chickens and eggs provides a constant stream of income to those who engage in such due to the fact that Nigeria’s rapidly expanding population continuously has nutritional needs which must be met by those who have the wherewithal to do so.
The Nigerian poultry sector is worth trillions of Naira. This is because the major poultry farmers who undertake the business full time do so on a large scale basis. The domestic demand of the poultry business is such that, with the high birthrate which is naturally prevalent among Nigerians, it is going to be one of the businesses that will always be in profit. The lean meats that are gained from the rearing of poultry are known to contain less of the harmful cholesterol compounds which are known to cause heart disease. White meats are also known to be good for diabetics too. The whites in egg are good sources of selenium, vitamins b6 and b12 apart from the amino acids and proteins that are available.
The following points below depict the various ways, means and methods through which one can profit from the Poultry Value Chain in Nigeria:
- Farming of raw materials for feeds: The various feeds for the poultry business are usually derived from cereals like maize and legumes like soybeans with some intervention such as vegetables like sunflowers whose derivatives are added to certain feeds. The farming of such critically important raw materials is a big opportunity. However, the rewards are worth it as the reaping of rewards from a single farm can grow exponentially depending on who is buying the products from you. The feed mill industries are known to consistently need these products and those who farm them in large quantities make profits huge from it.
- Feed production and milling: This is another profit center in the poultry value chain. Feed mills are very big businesses in Nigeria due to the constant demand for feeds of all varieties. The milling of feeds for especially the poultry sector is very lucrative due to the fact that birds have high consumption rates. Also, due to the short cycle of the business, the profits gained from the milling of these feeds are actually higher than most businesses. The critical issue that to be considered when it comes to the milling of the poultry feeds is the quality control which must be strictly adhered to or else the business of the milling company would collapse.
- Parent stock rearing: Parent stock rearing has to do with the production of a specific breed of the birds (Obasanjo farms breed for example). This critically but often ignored part of the poultry value chain is also highly lucrative as those who actually are involved in this activity have to be inclined towards animal health. It takes at least some experience in the animal health sector to be able to breed stock successfully. This is because the risks of introduction of new stock or even hybrids often are not borne by those who want to enter the business but have no scientific background or at least experiential expertise in the field. Also, due to the fact that the environment in Nigeria can be quite unpredictable, the business is not for the faint at heart.
- Importation, sales and distribution of additives: additives are extremely crucial to the production and milling of the feeds for the poultry value chain. This is because the additives are actually what enhances the nutrition value of the feeds themselves. Such additives include but are not limited to amino acids which are vital for the growth of the birds and the maintenance of their health, multivitamins and the various medicines and vaccines which are critical components of their healthcare. While many people may not think too much about the viability of additives medicines as a business. It is, however, a fact that this part of the poultry value chain possesses a great deal of importance. It is impossible for the business to do without them in one form or the other. The other issue worthy of mention is that Nigeria lacks the technology to manufacture a lot of these additives; so importation to maintain the business ecosystem is the only way out.
- Sales and distribution of feeds: Apart from the production of the feeds that are required for the poultry business, the sales and distribution of the feeds to the farmers is another part of the value chain that most people consider to be stressful. The truth is however that the business is quite lucrative. As a franchise dealer of a specific brand of feeds, you can become a millionaire in a year or less without much stress. The only activity that such a person would carry out would be to find willing farmers in his or her locality that would want to buy feeds. This of course can be done with some salesmanship as to the efficacy of the feed brand over other brands. The good thing here is that the feed company can even refer clients who want to buy feeds but fall in the location of the distributor. This spillover effect can and does provide extra revenues. The selling of feed is a rather simple process of marketing the feed to the farmers. This is easier than say selling cars because the target market is easy to spot! Just look for the nearest poultry farmer!
- Sales and supplies of wood-shavings: Wood-shavings is a product that is in extremely high demand by the poultry farmers because the wood-shavings is used to trap the droppings of the birds rather than for them to stain the floor. Every week depending on the size of the farm, several bags of wood-shavings would always be needed. The poultry farmers always prefer to pay cash down. This is to enable them to be able to quickly have access to the material. If they don’t do this, diseases are bound to spread so fast that they could lose all their birds in a very short space of time. This of course presents an opportunity to the would-be entrepreneur who is looking for some quick cash to make. Always remember to buy low and sell high!
- Equipment manufacture and maintenance: The equipment that is needed for the successful operations of a poultry farm if imported is usually very expensive. However, a lot of innovative individuals are starting to tinker around and make some of the machines. They may not look very nice but they do the job for a fraction of the cost. For example, locally made incubators fall into this category and they can be reused over and over again without much hassle. Also, the drinkers and feeders which are made from scrap materials are very innovative. A little bit of iron bending and metal working experience is all that is required if one was to consider going into this aspect of the poultry farmers’ value chain together with a lot of physical strength as anything that has to do with metals requires a whole lot of energy!
- Labor jobs on Poultry farms: Due to the fact that poultry farming requires a whole lot of physical activities, getting a job on a poultry farm can be done quite easily without any need for too much paperwork. This is because most poultry farmers need all the available hands that they can get in order for them to be able to fulfill the orders that they always get from their clients. The only thing which you must know is that you must be prepared to work hard and in some cases very hard as the job can be physically demanding and extremely stressful. The advantage to this is that you have the opportunity to learn on the job several things you may not have known before and also the fact that you’re getting free entrepreneurial training on the running and maintenance of a poultry business!
- The medical services offered: This aspect of the poultry value chain can only be carried out by those who have the required qualifications in animal care or veterinary medicine. This is because these workers deal strictly with Animal health. This definitely implies excellent income for such animal doctors because the birds must always have their inoculations and other medical procedures carried out on them so as to ensure the health of the stock and the total elimination of disease from the stock. Medical practitioners in this line of work are known to do very well as business is always steady without any stress.
- The purchase and sales of poultry droppings: Many people think that this is a very smelly aspect of the poultry value chain but this is also one of the most lucrative! It is so simply because the droppings of poultry make excellent manure for other farmers. So whoever gets to be able to buy the droppings cheaply for resale to other farmers tends to make a huge profit! The general idea behind the use of poultry droppings as manure is that chemical fertilizers tend to damage the soil and may not provide the nutrients that are needed naturally for the crops to grow. As such organic fertilizers bridge the gap between the organic soil nutrients and the chemical fertilizers. Poultry droppings are the cheapest and most readily available source of organic manure throughout Nigeria and actually provide required nutrients due to the composition of the feeds of the birds.
- Slaughter houses: The slaughter and removal of the innards of poultry is one aspect of the value chain that is very lucrative. This is due to the fact that the business has nothing to do with the raising of the chickens from scratch. All they do in this aspect of the value chain is to pluck the feathers and remove the internal digestive organs of the birds. Many people who are involved in this business do quite well and surprisingly may be the ones who we most admire in our communities. Poultry money pays!
- Sales and distribution of poultry products: This aspect of the value chain again provides the entrepreneurial individual with a very easy way of making money. This is due to the fact that the food business is a business which sells everywhere because we must all eat food. It is very easy to get into the poultry business this way as the size of your business is dependent on the size of your capital.
The poultry value chain in Nigeria is an industry of its own. Many Nigerians do not realize the enormous potentials that poultry farming offers. They think that those who go into the business suffer and do not make any money at all. The truth is that just like any other business; poultry farming requires a lot of attention. After some time, the poultry farmers get used to the business and make it big. Do you know of any ways to profit from the poultry value chain in Nigeria? Do you have any suggestions on how to profit? Please do not hesitate to share!
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Serial Entrepreneur - International Business Planning Consultant - Speaker - Trainer - Author - Blogger - Network Marketing professional.
- 2018 SME Business Trainer and Coaching Advisor at GIZ for SME Loop.
- 2018 YALI RLC Online Cohort 9
- 2017 Fellow, Inspire Africa Train-the-Trainer Entrepreneurship programme sponsored by US Consulate Lagos and the Dickey Center, U.S.A.
- 2016 Fellow, Tony Elumelu Foundation Entrepreneurship Programme
- 2015 Top 50 Innovative Entrepreneurs, BET5 by Diamond Bank and EDC, PAU.
He is an alumnus of Enterprise Development Centre (EDC) of the Lagos Business School (LBS), Pan-Atlantic University (PAU). Through his training, mentoring, speaking and coaching programmes, he has empowered many young people over the years to start and grow their own business, build wealth, create multiple streams of income and achieve financial independence.
- He is a Certified Trainer in Design Thinking by the U.S Consulate, Lagos and the inspire Africa Entrepreneurship Institute.
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