A rooster sells for just ₹200, but can earn you lakhs. Do you know starting a poultry farm business can change your life? You may think, but how? While some people just make delicious chicken, some people are making empires with it.
Do you know that India’s poultry market is worth Rs 1.7 lakh crore and it is growing at a rate of 8% every year. So, today I will tell you how you can make big money not only by starting chicken and eggs but also by starting many other businesses related to it. I will show you how you can achieve success in this big business even while sitting in your village or at home. So let us know everything in depth.
Poultry farm business is growing so fast in India that you cannot even imagine. Nowadays everyone wants protein and chicken is one of the cheapest and easiest protein sources. The demand is increasing rapidly in cities. People in villages are also consuming a lot.
Poultry Farm Business Plan
Now first of all let us come to the question that how to start a small poultry farm? For this, you will first have to make a business plan and there is nothing to be afraid of. It is very simple. Just think about how many chickens you want to raise? 500,000 or more. This will give you an idea of how much it will cost.
You need a Land
A proper place is needed which is a little away from the village or city. It should be quiet and where vehicles can come and go easily. There should also be arrangements for electricity and water. Try to keep the land a little higher so that it does not get flooded during rains.
Shed (Farm house)
After this you will need to build a shed i.e. a farm house. You can also make it from bamboo or brick. Or there are many modern ways in which you can make a shed with air and water.
How much space is needed?
So a broiler chicken needs approximately one square foot of space and if it is an egg laying hen which is called a layer then this hen needs a little more space. This means that the cost of building a shed per square foot will be ₹150 to ₹250. For example, if you want to keep 1000 chickens, you need at least 1000 square feet of space. Now the cost will be between ₹150 to ₹250 but you can calculate the square feet.
What items will be required?
So eating and drinking utensils i.e. feeders and waterers. These come in automatic as well as simple form. Even the cheap ones. Warm things called brooders. To provide warmth to the little chicks. Fans for air i.e. ventilation fans. Needed to control heat. Power backup, mainly generator which will be useful in case of power failure.
Then chicks, the raw material. You need to buy healthy chicks of good breed. You can choose broiler which is for meat or layer which is for eggs and get such chicks. After this you will need feed food. This is the most important and also involves the most expenditure. About 65 to 70% of your total expenditure will go towards feed. By providing good feed, chickens remain healthy, fall sick less often and also grow faster. Now the price of this feed mainly depends on the price of maize and soybean. After this you need medicines and a good doctor which is very important to prevent the disease.
Costs and Earnings
So now comes the next question: how much money will be required to start poultry farm business and how much will be earned? So starting a small farm can cost anywhere between Rs 500 to Rs 3.5 lakh.
If you want to set up a big farm then it will cost around Rs 7 lakh or even more. Talking about earning, if you raise 1000 broiler chickens, then in one cycle a chicken grows up in about 40 to 45 days, for full selling then you can make a profit of Rs 500 to 1 lakh after deducting all the expenses and if you bring layer chicken then there is good earning in egg business also, especially when you do it for a long time.
Challenges and Solutions
But first let us come to the next question which is what difficulties can arise, what challenges can come, so see, every business has some difficulties, there are some challenges in this also.
- The biggest and main challenge is diseases. Like bird flu, cleanliness is very important to avoid it. Vaccine is very important. You should have a good weight. There should be a timely visit. Good medicine and good feed are very important.
- Then the next challenge is the price of feed. The price of grains keeps changing. Sometimes the grain becomes expensive. Sometimes the grain becomes cheaper. There is a simple solution to overcome the challenge of feed prices. When the price is cheap, stock up more. Second is another solution that is very trendy these days. You can sprout the corn grains and convert them into small plants called micro green plants. Such big plants are made. So, if you have taken 1 kg of feed, 1 kg of corn grains, then from that you can prepare 7 to 8 kg of feed at home. This will save you a lot of money.
- The third challenge is market fluctuations. Sometimes demand in the market decreases, sometimes demand increases. The prices of chicken and eggs always fluctuate. But the solution to all this is that with the right information and hard work you can overcome these difficulties.
Government Schemes and Support
So the challenges will end but now the question might be coming in your mind that how will I bear so much expenditure and so many difficulties, don’t worry, the solution to this is that the government is also with you. In India, the government provides many facilities to expand the poultry farm business.
What are the schemes?
- So the first scheme is Pradhan Mantri Mudra Yojana. If you want to start a small business, you can take a loan up to Rs 10 lakh. There are three types of loans in this. Shishu up to 500, small start, Kishor from 500 to 5 lakh, little big and Tarun from 5 lakh to 10 lakh and big loan for big business. You can apply for this from any bank or you can also apply by visiting the Udyam Mitra portal.
- The second scheme is Animal Husbandry Infrastructure Development Fund AAIDF. This is a very big scheme in which the government has allocated Rs 15,000 crore. In this, you can also take loan for setting up poultry farm, feed mill or processing unit. In this you get a lot of discount on interest on the loan. You can check about this on the website of Ministry of Fisheries Animal Husbandry and Dairying or you can also ask your bank.
- Next is Kisan Credit Card, KCC. Poultry farmers can also avail loan up to Rs 3 lakh through KCC. At very low interest. This will help you a lot in your daily expenses.
- Then comes the National Lifestock Mission NLM. It has a special scheme for rural poultry entrepreneurship. If you want to start a poultry farm or hatchery in the village, you can get a subsidy of up to 50% up to Rs 25 lakh. This is direct help from the government to your business. For its application process you have to apply through your State Implementing Agency SIA or Bank.
The Egg Business
Egg is the most consumed protein source in India. Do you know that India is the second largest egg producer in the world. We produced over 138 billion eggs in 2022-23. So egg business is also a golden opportunity.
To start an egg business, you will have to raise layer hens. These are the hens that lay eggs. These also need a set. Proper food and care is required. One special thing about them is that a hen lays about 250 to 300 eggs in a year. There is steady income in this business because the demand for eggs remains throughout the year. You can sell these eggs to local shops, hotels, restaurants or even directly to customers.
Do you know that a broiler chicken becomes market ready in just 40 days and it costs only Rs 100 to Rs 5.25. But it is sold for up to Rs 220. This means if there are 1000 chickens then there will be a profit of up to Rs 70,000 per month. Think how much money that is.
Other Poultry Business Ideas
And it is not that there is only chicken and egg in this business. There is much more to this business. Let’s discuss other business ideas related to this. Poultry business is not limited to just the farm. This is a complete forest in which you can plant many types of trees. Big players create the entire ecosystem and you can also start with small parts in it.
What other businesses can you do?
Poultry feed manufacturing.
That means making chicken feed.
- Why do it? So 65 to 70% of the expenditure of a poultry farm is spent on chicken feed alone. If you can make your own grains or sell them to others, there is a lot of profit in it. You will earn a lot of money for your own farm and also in selling.
- How to do? So in this, grains are made by mixing maize i.e. corn, soybean, rice bran, minerals and vitamins. In India, big players like Venky’s and Sky Lark Hatcheries manufacture their own feed. Venky’s is Asia’s largest integrated poultry company and their feed manufacturing is a major reason for their success.
- What is the process? So first the raw material has to be cleaned. Then they are ground, mixed and made into patties. After that it is cooled and packed. I will put the links of the machines required for this in the description. You go and check it. If we talk about profit, even a small feed unit can give you a net profit of up to Rs 1.3 lakh. More than 10% profit annually. And if you set up a big feed unit and sell it directly in the market by branding it, then your profit will depend on how big the scale is.
Poultry Processing Unit.
The next business idea which is poultry processing unit.
- Why do it? So nowadays people prefer to buy cleanly packed chicken and eggs, especially in tier one cities. Moreover, in cities, the demand for processed chicken is increasing rapidly in place of live chicken. Processed chicken means chicken nuggets or KFC style chicken which people bring home. Nothing needs to be done. Open the packet that comes frozen. Put it in oil, fry it and consume it directly. There is a huge scope in this.
- How to do? So in this the chicken is cut scientifically, cleaned and then corn flour, spices, salt are added depending on the item you are preparing and then it is packed and frozen and sold. For this it is very important to follow the rules of FSSAI.
- Who is doing it? So Saguna Foods is one of the largest poultry farms in India and they have huge processing plants where thousands of tonnes of chicken are processed every year.
Poultry Waste Management.
Then let us come to the next business idea which is poultry waste management i.e. earning from waste.
- Why do it? So a lot of waste comes out from poultry farms. Like chicken poop. It is very important to manage it properly. You can convert this waste into manure or you can convert it into protein rich feed by using Black Soldier Fly Larva i.e. BSF Larva. This is a very innovative way to earn money from waste.
- Who is doing it? So companies like Super Enviro Pvt Ltd are working on this technology.
Poultry Equipment Management.
Then the next method comes poultry equipment management. Making farm stuff.
- Why do it? So new farms are opening. Everyone needs things like feeders, waterers, cages, incubators, fans etc. How to do? So you will have to make this stuff yourself and sell it.
- Who is doing it? So companies like Vijay Raj Poultry Equipments and Bala Industries manufacture these items in India.
Poultry Vaccine and Medicine Businesses.
Then the next opportunity comes in poultry vaccine and medicine businesses. Vaccines and medicines are necessary to protect chickens from diseases. You can take dealership of these medicines and vaccines or start your own distribution.
- Who is doing it? So companies like Boringer, Ingel, Him and Vacu Pharma are working in this sector.
Cold Chain Logistics.
Another business opportunity comes in cold chain logistics. This means that cold refrigerated trucks are required to transport processed chicken and eggs fresh from one place to another. In this you will need temperature controlled trucks and warehouses. There is still a huge shortage of this in India. So this is a huge business opportunity.
Organic Poultry Farming.
Then the next business opportunity is organic poultry farming i.e. desi chicken and pure egg. Nowadays people are becoming health conscious and take great care of their health. The demand for organic chicken and eggs is increasing because they do not contain any chemicals, antibiotics or hormones.
- How to do? So in this the chicken is reared in the open on natural grass. They are given organic feed and the use of medicines is minimal. Its price is more than normal chicken. For this you will need a cage free environment. Organic feed will be required. No antibiotics and no hormones will be required.
Poultry Retail Business.
Then the final and last business opportunity is poultry retail business.
- Why do it? So you can sell the products from your farm directly to the customers or open your own shop or online store.
- How to do? So maintain good hygiene and give fresh products.
- Who is doing it? So big players like IB Groups are starting their own retail chain expansion. Where they sell their processed chicken themselves.
You can also add the angle of digitization in this. Look, nowadays farmers are also selling online using apps like Agri Bazaar, Fasal, Dehat. These apps connect you directly with buyers and you can sell your products directly to customers at a good price.
Export Opportunities
There is another angle to this, the export angle. Do you know that India exports poultry products to 47 countries in which UAE, Oman, Maldives, Bhutan are the top buyers. So you see how many opportunities there are.
Building a Complete Ecosystem
Now the biggest way to build a successful business is to look at this business as a complete ecosystem. Big players like Shaguna Foods, Venkaiah Naidu and IB Group have done the same.
Let me tell you a real life case study. This is Ravi from Bihar. Ravi started with just 500 chickens. People used to say what will happen with this? But Ravi collected all the information, worked hard and today Ravi has a poultry turnover of Rs 1 to 2 crore every year. Just imagine, such a big business can be created with just 500 chickens.
- Talking about Saguna Foods, it started with the model of contract farming. This means they provide chicks, feed and technical support to small farmers and buy them back when the chicken grows up. This reduces the risk for small farmers and they get a fixed income. Shagun has created a big network by connecting thousands of such farmers.
- Venky’s India Limited They don’t just raise chickens. They do complete integrated business. Meaning they have their own hatchery. Where chicks are born. Have our own feed mill. Where the grain is formed. We have our own medicines and our own processing units. Due to this their quality control remains good and the cost also remains low.
- IB Group: This is also a very big company which has entered into feed, breeder farming, hatcheries, boiler farming and now even retail. They use technology a lot. Like in-ov vaccination means applying vaccine to chick eggs and EC sheds means environment controlled sheds, they have also started a program called Parivartan to support small entrepreneurs.
All these companies started small and look how big they have become today because they understood the entire value chain and controlled it. You can also start small and gradually add all these businesses.
Marketing Strategies
So now let’s come to the most important section of this blog, marketing strategies. You started a business and created a product. So, How to sell now?
- So let’s start with the local market. Connect with shops, hotels and restaurants in your village or nearby cities. Give them your fresh products. When your product is good, people will automatically praise its quality and tell others about it, which will lead to world of mouth marketing. Meaning you will get free publicity.
- Now the most important thing you have to pay attention to in this is cleanliness and good quality. When your chicken or eggs are clean and fresh, people will come back again and again. For this, simply follow all the rules of FSSAI. Look, it’s simple. If you follow all the rules made then the quality standards will also be maintained. People will like your product and you will also grow well. Yes, the growth may be a little slow and people, in their quest to grow quickly and make money through shortcuts, bypass the rules. But if you want to play long, become big, become a big player then follow all the rules of FSSAI.
- Then after starting from the local market, if possible, start using social media also. If you are a little modern then you can post photos and videos of your products on Facebook and WhatsApp. You can create a community. You can create a group. You can create a channel where you update regularly and tell people how clean your farm is. Start making small video reels and posting them on Instagram, which will give you reach. There people will come to know how hygienically, how naturally, how organically you grow good quality chickens, how good quality cakes you grow and because of this you will start getting good orders.
- After this, when you have an online community and you have a little fan following, you have some loyal customers, then you can also enter into processed chicken items. Like chicken nuggets, chicken sausage or KFC style fried chicken can also be launched. You can create your own brand and then by getting orders from the online community, you can gradually create a big brand through word of mouth marketing.
Conclusion
Now look, starting a proper poultry farm business will not just give you money. This will also make you self-reliant. You can provide employment to many people in your village or city through this. So, chicken is not just a dish or a taste. This can become a right and successful poultry farm business for you in India.
So if you found this blog valuable do let us know in comment section below, and if you feel that big dreams can be fulfilled even through a small business then share this blog link with a friend who is troubled with his job maybe their life will change after reading this.